William Foshee: Well, I think the primary driver as Tom mentioned in his remarks was kind of the economic outlook improved over the past two or three quarters. So I mean, that’s where we were able to maintain, where we are. It just depends on kind of the key drivers being unemployment and GDP are going to impact the model and the outlook on those.
Thomas Broughton: Yes. Unfortunately, there’s a limit on what you can, — I think bankers by nature would have a much higher loan loss reserve if we were left to our own desires. We’re not. But the CECL models are — they can switch or change over time as you well know.
Stephen Moss: Right. Okay. Appreciate all the color and I’ll step back. Thanks guys.
Thomas Broughton: Thank you.
Operator: Thank you. Our next question comes from Graham Rick with Piper Sandler. Please proceed with your question.
Graham Rick: Hey, good evening guys.
Thomas Broughton: Hey, Graham.
Graham Rick: I just wanted to circle back with something you just touched on is that $1.5 billion number of deployment into loans. What’s sort of the ideal time horizon for achieving that?
Thomas Broughton: [Multiple Speakers] You know, I mean — at this point, I don’t know. I just don’t know how quickly we can get the loans on the books and I don’t know what will pay off. Our loan pipeline is pretty robust. But it’s nothing like $1.5 billion, I can tell you that. So that is a — that is a $64,000 question which is — you weren’t born when a $64,000 question came about, Graham, but Google it sometime.
Graham Rick: Okay, fair enough. Fair enough. Okay. So then I guess, I wanted to just talk a little bit more about deposits as it relates to the pipeline, you mentioned that the pipeline is smaller than it was last quarter now. Can you just provide what the pipeline was heading into 3Q and then also what it was heading into 4Q?
Thomas Broughton: Yes, it’s not a scientific number and we don’t ever discuss it, but let’s see — probably down — probably down a couple of hundred million dollars from last quarter, Graham.
Graham Rick: Okay.
Thomas Broughton: So we put it on the books, so we got it on the books. So — and again, we’re trying to rationalize deposit costs now, as time starts, improving profitability, we got to be a little bit smarter about it.
Graham Rick: Okay. And then on that front with deposit costs, I mean, it seems like most of the growth has been in money market recently. And I guess most of that’s probably fully indexed and floating rate. So, as you start to adjust your strategy on the deposit pipeline and pricing perspective, what does that sort of look like for you guys? Is it saying like no more index money market, and just time at a rate below Fed funds or how do you guys kind of approach that from here I guess?
Thomas Broughton: Well, it depends on what as a percent of — as a percent of Fed funds, what is the rate, you know is it, you know, 100% of Fed fund you are interested in some percentage of Fed fund. So that — you’ve got to have some margin and what — you will at least have some margin what you leave sitting at the Fed, because we got a lot of cash sitting in the Fed right now. Of course, the other question is, when do you start buying securities and we got about securities again someday, but given we’ve got so much — we don’t — we want little bit more floating rate assets on the book, so we’re hesitant to move into longer term, when I say longer-term, I say two to five-year treasuries. So that’s — you might be smart and start doing it now, but we’re not going to be smart, because we’re not going to do it now. So we’re just waiting on that, but again, we don’t have to [indiscernible] it someday.
