Please go ahead.Catherine Mealor This is Catherine Mealor Great. Okay. I wanted to follow up on Brad’s question about the brokered CDs that you added this quarter. Can you tell us on the average rate that those came on and what the maturity is. Just trying to think about perhaps how long that may be on your balance sheet and it’s fair to model that some of that rolls off towards the back half of the year and is replaced with perhaps lower cost funding.Jefferson Harralson Yes, thank you. That’s a great question. So mid-February, we put these on. The average rate was in the 460 range, and they have 6 months maturities. I would expect to continue to grow core deposits and replace it with core deposits.Catherine Mealor Okay. And then interesting, it seems like you sold down your FHLB and really chose to put in brokered CDs instead.
So how do you think about weighing the 2 options between brokered CDs and FHLB and when you choose to pull one funding versus the other.Jefferson Harralson That’s a great question. So as we came into the year, this year, we made a decision, want to sell a small amount of securities to $270 million and the idea there was that we could now fund our expected loan growth for the year. Remembering back to Q4, we had $540 million of FHLBs, so the plan again, this is all before Silicon Valley is that we take down a little broker deposits and free up liquidity at the FHLB if we ever came to possibly need that.And so the pricing is relatively similar, but we just wanted to tap that market to make sure that the broker CD market was open to us. And at the same time, you get the benefit of saving your kind of button push liquidity at the FHLB if you ever needed it turned out that we didn’t really need that this quarter, so we went ahead and paid the FHLB down.Catherine Mealor Okay.
Great. Super helpful. And then a follow-up on the credit conversation. There’s a lot of anxiety about all the CRE maturities that we’re going to see over the next couple of years. Can you give just any kind of clarity, Rob, what you’re seeing with your clients, when you’ve got a CRE loan that’s maturing and it’s moving to a higher rate, generally, what are you seeing in your clients’ behavior? What kind of new underwriting is taking place? So the occupancy rates or your underwriting still appropriate to where they can handle the higher rate?Rob Edwards Yes. It does. I mean the short answer is yes. We are seeing rental rates are increasing occupancies are stable. So we’re not seeing a lot of problems pop out of maturities. I did go in the portfolio to try and examine are there properties that currently have low debt service coverage that are maturing this year.
I came back with a number of about $30 million. So we’re just not — it doesn’t feel like there’s a ton of exposure out there in terms of sort of looming troubles on the maturity side at the moment.Catherine Mealor Okay. Great. And then any color on the loans that moved to nonperforming this quarter?Rob Edwards Yes. So one of them is a senior care credit that struggled to stabilize. And so it went non-accrual. Another one was a C&I credit that actually it was a long-term customer, sold the business to private equity group and the private equity group wanted to expand into some additional lines of business, and they didn’t have the financial controls in place to be able to do that and had some — ended up filing bankruptcy during the quarter.
I feel good about the business. We’ve known it a long time. The core business is very strong. And so I don’t see it as being a big problem in the future, but we’re working through it right now. But those were the 2 credits that drove the increase in NPAs.Operator The next question will come from Michael Rose with Raymond James. Please go ahead.Michael Rose Just wanted to go to this quarter’s core loan growth of kind of 8% annualized. I think you guys have kind of talked about 5% as we moved through the year, excluding acquisition. Just wanted to get a sense for kind of borrower demand versus where current rates are and just how we should think about that push-pull dynamic as we move forward. Thanks.Rich Bradshaw Good morning, Michael, this is Rich Bradshaw.
With regards to how we’re thinking in the near term, it’s probably still mid-single-digit demand surprisingly still strong, stronger than I would have guessed. So we’re working through that. I would say, and I said near term mid-single digit. Jefferson mentioned the hiring for first quarter. We hired 10 on the incremental side. Half of that was a lift out and that lift out was in North Georgia in the Greater Rome area with 5 commercial professionals.I will tell you that we are currently down the road and across the footprint, but there are 3 other lift outs that we are in deep discussions with and very, very close. And also comment, this is the best hiring market I believe I’ve ever seen. The volatility in the banking industry just has really created great opportunities.
We’re going to be opportunistic. We’re going to be very selective but we are going to take the opportunity if it exists, and we’re very, very close. So I think that mid-single-digit moves to high single digit if we’re able to execute on some of these lift-outs.Jefferson Harralson And I’ll just say I think to be able to support this, given the funding that you saw this quarter and the loan-to-deposit ratio that we have. So I think we’re in a really good strategic position to be able to hire people and set them loose.Rich Bradshaw And that the strong core deposits plus the lower loan to deposit ratio is affecting our lenders.Michael Rose Very helpful. Maybe just as a follow-on to that, how much of this quarter’s organic growth acquisition was kind of fund up of existing commitments versus just of that kind of came in through the quarter.
Just trying to get a sense for how much of a tailwind versus headwind kind of dynamic we’re kind of thinking about here. It seems like growth obviously is going to slow through the industry, but you obviously have some offsets with some of the people that you’re hiring and planning to hire.Rich Bradshaw Sure. And I’d say it was kind of fair, the round number is 50-50 on organic growth. And then, of course, we do a fair amount of construction lending, and you have the draws always catching up.Michael Rose Okay. Perfect. Maybe just going back to Navitas and obviously, uptick here in charge-offs and things are normalizing not surprisingly notice that the reserve allocation went up about 11 basis points to a little over 1.8%. But I think in a normalized credit cycle, I mean, I think that number historically been much higher.
