And there’s one way to do it, raise loan rates and lower deposit costs. So that’s what certainly — we’re not forecasting in our internal budgets, any rate cuts or rate increases for that matter. But we always forecast flat rates, and I think we’re going to have to make it based on what we have. When the cards we’re dealt, we don’t count on getting a reshuffle and getting better cards in the deck. So does that answer your question, Graham?
Graham Dick: Definitely. Definitely. Okay. That’s all from me guys. And Bud, congratulations and good luck.
Bud Foshee: Thank you.
Operator: Our next question comes from the line of Steve Moss with Raymond James.
Steve Moss: Maybe just starting off on — just circling back to loan growth here. The quarter was driven with a tilt towards resi. Just curious, do you expect this will continue here for another quarter or two? Are you looking to maybe just trying to get a sense for — increase your asset sensitivity, just the dynamics there, what kind of product you put on as well?
Tom Broughton: First of all — yes. We didn’t really have any loan growth in the quarter. And I don’t think we’ve got — on the residential side, I think we don’t have much there, Steve. I don’t — what do you see there that…
Steve Moss: I had 6.8% quarter-to-quarter growth for 1 to 4 family.
Henry Abbott: Yes. I mean 1 to 4 family was certainly kind of part of the driver of the growth for the quarter. But that’s an anomaly. I mean, we’re focused on commercial clients, that’s where we’re going to see our growth, in commercial C&I and commercial CRE, that’s our bread and butter.
Tom Broughton: Does that include rent to own? Excuse me — I mean, rent?
Unidentified Company Representative: No. This just [indiscernible] for.
Tom Broughton: Okay. It’s not — still not a big — and the rest of your question, I’m sorry, I’ll focus on that, Steve, give me the second half of the question.
Steve Moss: Yes, just thinking around asset sensitivity, maybe just making to a more broader question. Obviously, rate cuts should help you guys here. Just curious what you’re doing either on the balance sheet to benefit potential rate cuts? And today where you’re positioned what a move of 25 basis points will do to your margin?
Kirk Pressley: This is Kirk. We are liability-sensitive, but it is not massively. We’re pretty close to neutral at this point, and that’s where Tom has always tried to direct this bank. I think we are a lot more neutral than we were or even liability sensitive compared to where we were a year ago. So I think at this point, if there was a nominal increase in rates or a decrease in rates as we’re talking about, we don’t think it’s going to have a major more than like 2%, 3%, and that’s at a 1% rate change over a year. So it’s pretty nominal. So we’re playing the hand that we’re dealt right now. We think the repricing story is something that really is going to help us a lot over the next year, and we like what’s happening with the securities, too. So we like where we are today.
Steve Moss: Okay. Great. I appreciate all that color. And just one more thing. I apologize if I missed it. On the credit card income, I know there’s — I heard the issue with the vendor, you guys mentioned. Just curious how you guys are thinking about the growth for that business in the upcoming year, how much you could pick up?
Rodney Rushing: It’s Rodney Rushing. Yes, we had a vendor billing where we actually had double expenses for the fourth quarter, which caused the revenue in the — hurt credit card income for the fourth quarter a bit. We also went through a conversion, which I noted during the year. All of that’s behind us now. Besides our growth with our own commercial customers with [indiscernible] cards and credit cards, we’re adding agent banks. In ’23, we added 14 other banks, of course, [indiscernible] the banks are issuing credit card. We share that revenue with them through the American Bankers Association in both program. But through all these new issuers that we’re adding and our pipeline of new banks is stronger for 2024 than it was for 2030.
Steve Moss: Okay. Great. Appreciate all the color, guys, and Bud, best of luck on your retirement.
Bud Foshee: Thank you.
Operator: Our next question comes from the line of Dave Bishop with Hovde Group.
David Bishop: I think in the prepared remarks, you said the outlook for — it will be a balanced approach between loan and deposit growth, I think, for the year. How should we think about the funding of loan growth of high-single-digit is going to be purely deposits or it’s going to be a combination of runoff from cash and securities? Just curious how should we think about that?
Kirk Pressley: It’s going to be deposits. We’re trying to be balanced this year on dollars, so a little bit different, obviously, in percentage, but we’re trying to be balanced on dollars.
David Bishop: Kirk, remind me the cash flow from the securities portfolio, what you’re expecting this year?
Kirk Pressley: About $2 billion.
David Bishop: $2 billion? Okay.
Kirk Pressley: Sorry, loans.
David Bishop: And the securities?
