Lee Gibson: We could bring the bond portfolio down some. There’s probably, depending on what happens to long-term rates, limit on what we’d be willing to do there. But we could probably fairly easily fund a quarter of that loan growth by reducing the bond portfolio. We are anticipating some deposit growth. It’s not going to be cheap if it’s interest-bearing deposits, but we are looking at some other opportunities to be able to fund. And then — I’m sorry, the January maturity, okay. But if — whatever the balance is that we don’t have — and we would look to the broker market or to the home loan bank advances market, whichever was the better course for us to take for that additional funding.
Brad Milsaps: Okay, perfect. All right. Thanks Lee, I really appreciate it.
Lee Gibson: All right.
Operator: And thank you. And our next question comes from Brett Rabatin from Hovde Group. Your line is now open.
Brian Conner: Hey guys, this is Brian Conner from Brett. How is it going?
Lee Gibson: Good. How are doing Brian?
Brian Conner: Good. Thanks. Could you just provide a little color on the remaining maturity profile of the securities book there? What do you have maturing in the short-term?
Lee Gibson: Yes, maturing in the short term. I know we have monthly amounts that come off the mortgage portfolio. They’re not huge. I think we’ve got about $11 million or $12 million MBS pool that matures in March, and it’s at a fairly low rate. Other than that, and then we have probably about to $20 million in municipals that while they’re not going to mature, they will come up on their call dates and that have 4% or higher coupons. And if they don’t mature, we’re going to see a nice pickup in yield on that. In terms of what’s coming off on the MBS portfolio, it’s probably about $2 million to $3 million a month, somewhere in that range.
Brian Conner: Great, that’s really helpful. And then one more, if I could. Just wanted to get your thoughts on CRE. Are you planning on doing any sort of credit review on that book? And then also wanted to get your thoughts on office space as well?
Lee Gibson: Okay. In terms of credit reviews on CRE, really what we do, probably every six months or so, and we just did one in the fall. So, we’ll have one coming up probably here in the spring, early spring. We go through and we take a look at all the credits above a certain dollar amount, and I believe that dollar amounts $5 million. So, we get an update from the officer on just about everything and take a look at what the — their average rents are, the vacancy rates, things of that nature, just see if there have been any changes and then any changes in the financial condition of the borrower. So, that’s something we do at least twice a year, and it’s not just limited to CRE, but it’s all of our credits. In terms of office, we’re extremely careful on office.
I’m not saying we don’t make office loans, but we look at the quality of the tenants that are in there. We look at how long they are tied up for when those leases come due. And those typically require a fair amount of equity going in, and we look for really solid debt service coverage ratio. So, office is not probably at the top of our list right now, but it’s — there are some good office loans out there to make. You just have to be very selective and make sure that the borrower is somebody that has a lot of familiarity and experience in that in that area and that the tenant role is such that you feel like for the life of the loan, you’re in pretty good shape. So, those we look at extra hard.
Brian Conner: Great. Thanks. That’s good color. Appreciate the questions.
Lee Gibson: All right. Thank you.
