Lee Gibson: Sure. Last year, in 2022, we were able to get some favorable pricing in the broker deposits, money market environment, and we replaced for our cash flow swaps, and we replaced a lot of the home loan bank. In fact, I think at one point, we had all of it replaced with the home loan bank. Now, that has slipped. And so at this point in time, the more favorable funding is at the home loan bank. So, what you’re seeing there is mostly a flip from broker deposits to cover those cash flow swaps into the home loan bank advances. At this point in time, we did have $30 million that rolled off in the first quarter of cash flow swaps, and I’m looking at our funding person to make sure, Okay. 25 — excuse me, $25 million. So, we’re down to about $350million in those cash flow swaps.
So, when you take — excuse me, $550 million in those cash flow swaps. So, when you look at our broker deposits and when you look at our home loan bank advances. I think it’s important to note that $550 million of that is basically fixed pricing on that. But we do have some overnight funding at Home Loan Bank at this point in time simply because it’s one of the cheaper places to go to get additional wholesale funding. Is that number–
Brad Milsaps: Yes, yes. Well, I have those numbers in the queue. Like you’re paying like 113 basis points on those on those– on the $575 million. Is that correct?
Lee Gibson: That was correct at year-end.
Brad Milsaps: Or 9/30 — at September 30th, yes, okay. Got it.
Lee Gibson: Yes. And so the one that rolled off, I think, was at 140 something, wouldn’t it or somewhere in that range. We’ll find it and let you know.
Brad Milsaps: Okay. Okay. Great. Okay, great. And then just on your loan growth, I mean, 9%, maybe that was a touch higher than maybe I expected given kind of what’s going on in the market. But it sounds like you’ve got a number of construction projects that you planned that you plan on funding up. Anything else in there is kind of a big driver in any new lenders. Just trying to kind of get a better sense of what’s kind of driving your loan growth target?
Lee Gibson: We do have some new lenders and some of the lenders that came on in 2021 — even 2020 and 2021 are really hitting their own. In Houston, 300– approximately $300 million of our loan growth this year was in Houston. And as you know, we opened an LPO down there in early 2020. And they weren’t able to do much with the pandemic, but they really come into their own in 2022. And then one of the other lenders or two of the other lenders that we hired had relationships in Houston as well. So, we’re anticipating that that’s going to continue at this point in time. We’re not expecting that 14.8% loan growth. But at this point in time, we feel like 9% is achievable. And if that changes, we will update that on future quarterly calls.
Brad Milsaps: Got it. And then just a follow-up on my first question, we kind of got bogged down there in the swap talk. But the 9% loan growth target. Do you think you can fund that flu with deposits or aside on what’s going on with swapping back and forth between brokered and FHLB, but do you anticipate bringing the book down? Or just kind of just some way to think about the size of the balance sheet and kind of how you plan to fund it?
