Steven Young: Yes, this is Steve. When we are thinking about loan repricing, basically, it’s rough numbers, $1 billion a quarter. I think, we have about $3.3 billion left in 2024, and it is repricing in that — it’s [4.67] (ph) coupon. So our average loan yield this quarter was around [7.5%] (ph). So it’s not quite 300 basis points, but somewhere in that general range. Next year, we have about $3.5 billion of the [4.93%] coupon repricing in 2025. So it’s — if you kind of look at it over the next seven or so quarters, it’s roughly $7 billion. If you add another $1 billion or so in securities repricing over the next seven quarters or so, that’s kind of how to think about the next — to get you at the end of ’25. And so one of the questions I think it seems like sentiment has changed the higher for longer.
And what I wanted to do maybe before we close, is just to think about a little bit around when rate cuts do happen and we don’t know when they’re going to happen, but sort of the pluses and minuses in our book, the way we are thinking about it and how we are sort of guiding in that 3 basis point to 5 basis point margin expansion when that happens. And it has to really do with our loan construct. We have about $10 billion of floating rate loans. And if we get six rate cuts, that will cost us $150 million. We also have a $37 billion deposit portfolio, we’re sort of modeling a 20% down beta, it is 33% on the way up, 20% on the way down. So that would help us by $110 million or so. If we get to the end of next year, we have 6 rate cuts. But really, the thing left that really sort of propels everything is the $8 billion or so we just talked about that reprice is somewhere in that 2% to 3% range above where we are today.
So let’s call it 2%, that’s $160 million. So you lose $150 million on the floating, you gain $110 million on the deposits and then you gain another $160 million on the fixed rate repricing. That’s $120 million or so on a run rate on $40 billion, that’s about a 30 basis point improvement. And that’s sort of how we unpack the 3 basis point to 5 basis point as we think about rate cuts. So I know, everybody right now is thinking that we are going to be higher for longer, and certainly, that is what the data is telling us. But to the extent the Fed does pivot at some point, that is how we are thinking about sort of rates down.
Dave Bishop: I appreciate that. That’s great color. And then final question. I noticed it maybe a housekeeping a little bit of a tick up in in short-term cash and liquidity. Does that have anything to do with the seasonality you mentioned? Thanks.
Steven Young: Not really. Probably just end of the quarter type of event. Sometimes it moves around a little bit. But typically, we are trying to manage the cash book at somewhere around 2.5% — 2% to 3% of assets. So sometimes it moves a little higher, sometimes a little lower, but that’s generally how we do it.
Operator: And there are no further questions at this time. I will now turn the call back to Mr. John Corbett for closing remarks.
John Corbett: All right. Thanks for joining us this morning. We know it’s busy with a lot of calls out there. So if we can provide any other clarity for your models, don’t hesitate to give us a ring. Hope you have a great day.
Operator: And ladies and gentlemen, this concludes today’s call, and we thank you for your participation. You may now disconnect.
