Matt Scurlock: Yes. I’d see the high end of that range, largely staying intact, Matt. I mean, as you know, we really like the industry. We’ve invested in expanded product offerings. We feel as though we’re banking top-tier clients in the space, and they want a place to move their treasury and they want a spot to move their deposits, and we’re happy to avail them of that. So I’d look to the high end, I think, on actual warehouse part of that by actual warehouse balances. So we’re still looking at a 30% industry-wide decline in one to four family originations for the year will be about 75% of that decline or as we said in the script, a 25% outperformance margin. So, if we were $5.3 million last year on full year average warehouse balances, you can look for that somewhere in the low 4s.
So, I think you’re going to see that phenomenon play out through the back end of the year. There are a component of those balances, as you know, Matt, that are compensated the mortgage warehouse yield. So as the loan volumes decrease, the yield will also decrease as deposits remain flat or grow. So that’s something to consider we’re modeling it out.
Operator: We’ll now take our final question from Zach Westerlind from UBS. Zach, your line is now open. Please go ahead.
Zach Westerlind: It’s Zach on for Brady. I just wanted to get your outlook for loan growth, if that’s possible? And what some of the key drivers are?
Rob Holmes: I’m sorry, operator. We can barely hear for some reason. Would you mind repeating? Loan growth, so look, I’ll touch on it, and it’s not the right question, I apologize. Loan growth was materially less this quarter, as Matt said. As I’ve always said, as we’ve always said since we started the journey two-plus years ago, this is not a loan growth story. Remember, a primary focus of ours is recycling capital, and we’re solving complex solutions or needs for our clients. Even though we had low loan growth, remember a 30% increase of new clients. So, we’re doing a lot of different things, they ingest loans. That is not an indication of the activity of the platform whatsoever. And I’m perfectly content whether we bank the best clients in our markets via a loan or treasury or capital solution or a private wealth of mortgage finance or wherever they may end up on our platform.
I do think loan growth across the entirety of the economy is out a lot now it is. We’re no different. And people are a little bit more bearish today than they were in the past. And I think the spend on CapEx and other things as has slowed based on cost and confidence, which makes the power of our platform even more important.
Operator: Thank you. Unfortunately, we have lost that questioner. I’ll now hand back to Rob Holmes, CEO, for any closing comments.
Rob Holmes: Great. Operator, thank you very much to everybody for dialing in and your continued interest in Texas Capital and our transformation story. We look forward to talking to you next quarter.
Operator: This concludes the conference call. Thank you very much for joining. You may now disconnect your lines. Have a lovely rest of your day.
