Matt Olney: Okay. So loan growth and partially into securities, and on the loan growth front, I heard some commentary on that. I heard the deposit growth guidance. Any — I may have missed the loan growth guidance. What’s the range of expectations for loan growth this year?
Billy Carroll: Yes. Matt, I think we’re projecting kind of — we’re staying in the kind of that mid-singles. I think we can be somewhere there, hopefully north of 5%. Our bogey internally is about 7%-ish on both sides of the balance sheet. When you look at balance sheet growth, we’ve got — again, we feel good about the way the year is starting. I mean pipelines continue to look good. as we sit down with our regional presidents and look at our growth prospects, we feel good about getting that. So we’re still kind of in that kind of in that upper not — I wouldn’t say high singles, but kind of mid-plus single balance sheet growth for the year.
Matt Olney: Okay. That’s helpful. And then as far as the Alabama credit that was mentioned before, any more color you can provide on this, just the size of that loan and it sounds like you feel good about the collateral. What is that — what type of collateral is that?
Ron Gorczynski: Yes. Rhett, you want to walk into that?
Billy Carroll: You got some mix collateral in it.
Rhett Jordan: Total size of — I mean, it wasn’t a single loan. It was a group of loans, but the total size of all of them is about $3 million in balances. And the collateral is predominantly real estate and then there was some office equipment associated with some of that as well.
Matt Olney: Okay. And as far as resolution of that type of credit, is that a near-term event? Or could this drag out for a little while, you think?
Rhett Jordan: I don’t think it will drag out for a long period, Matt. I mean it may take us up in a quarter or a little more, just depending on the some of the legal process we go through, but — and the positioning of location of some of those assets. But I don’t think it’s going to be a drug out thing. And like I said, we went ahead and positioned in allowance of factor against what we believe to be the risk there. So we feel pretty good about where we’re positioned at this point.
Matt Olney: Okay, okay, guys, that’s all for me. Thank you.
Rhett Jordan: Thanks, Matt.
Billy Carroll: Thanks, Matt.
Operator: Our next question today comes from Feddie Strickland from Janney Montgomery. Please go ahead.
Feddie Strickland: Hey, good morning, gentlemen. Just wanted to ask, there’s — I know there’s been some discussion, and I appreciate the detail and the securities rolling off. What kind of yields are you getting on new securities that you’re reinvesting into, just so we can have a sense of maybe how much pickup you could have on the securities book over time?
Ron Gorczynski: At this point, we’re looking probably — it’s over probably 5.25% range, somewhere plus or minus depending on the exact security we’re getting into, but it’s definitely over 5% that we’re looking to reinvest into.
Feddie Strickland: Got you. So we should just kind of pay attention to whatever Fed funds does and use as a bit of a barometer?
Ron Gorczynski: I would think. Yes, 5, 10 basis points, maybe below that Fed funds, but yes.
Feddie Strickland: Got you. And then you mentioned…
Billy Carroll: You’re right thinking about it. It’s funds move. Yes. I was going to say, Feddie, I think its funds move, obviously, we’re, again, trying to figure out you go ahead and ladder out a little bit of duration in a market where you’re seeing the curve kind of move a little bit on you. So again, trying to balance that kind of short-term versus long-term benefits. But as Ron said, we’re still going to get decent yields on the [indiscernible]
Feddie Strickland: Yes. That makes sense. And I wanted to switch gears. If we do start to see rate cuts next year, will we likely see a bit of a lag on deposit repricing at least in the sorry, consumer and commercial side until potentially a second cut, but maybe a faster benefit on municipal deposits repricing. Just trying to understand how the deposit portfolio would act on the way down.
Billy Carroll: Yes. And Ron, I think Ron gave a little bit of guidance there just kind of on what we’ve got this repricing immediately on the liability side. But I think it’s a mix. I think we are in a position with our liquidity that can allow us to move rates maybe a little quicker than some. We’ve done a little of that. One of the things with our deposit growth being a little bit softer this quarter. Some of that was because we pushed — there were some higher cost stuff that we just didn’t want to match and move some things out. I think for us, we’ve got some flexibility there. But yes, there might be a little lag, but we’re going to we’re going to try to push as hard as we can push. But Ron, I don’t know if you’ve got any other comments.
Ron Gorczynski: No, exactly. As Bill indicated, push hard the first cut or two and then see what the market will bear. But it’s — we definitely want to take advantage of it.
Billy Carroll: It’s kind of like — and Feddie, it’s kind of like when we saw rates going up, I mean you end up kind of fighting for that rate-sensitive core. And so I think we’re going to look at some of that kind of more market by market and client by client. But at the end of the day, we want to make sure we’re retaining. We know what the market is, and we want to retain those — the core business, but we’re going to be as aggressive as we can on the way down.
