Kevin Fitzsimmons: Okay, that makes sense. And appreciate the range on the margin, it’s certainly going to be noisy in first quarter with the deal coming on. But if we’re, say getting beyond first quarter, and now we’ve got this whole Progress in, fully in and now, let’s say we’re done with Fed hikes, but not yet to a point where the Fed is cutting in that kind of environment, do you think you can hold the margin steady? Would you expect to hold it steady? Or would it be more likely that we see some modest grind down to the margin, given the lack of deposit costs increasing?
Jefferson Harralson: I think it’s more likely the latter. And that’s what we’re modeling is a slight grind down. Again, we have some defenses and that you’ll be seeing the loan-to-deposit ratio, I think increasing a little bit, you’ll see the mix change between securities loans that we’ve been talking about for a few quarters now. But I think the lag effect of funding and the price competition that we’re seeing out there, combined to grind slightly down for the rest of the year.
Kevin Fitzsimmons: And Jefferson, just on that point about the loan-to-deposit ratio, so with it up to a slightly above 77%. So it’s still very liquid balance sheet relative to pre-pandemic. How would you think about that ratio in terms of, when you’re assessing when, and whether to get more aggressive on deposit pricing? How comfortable are you taking or to what level are you comfortable taking that ratio up to?
Jefferson Harralson: That’s a great question we have. We have been running in the low 80s for very long time, pre-COVID, where we felt comfortable, we feel comfortable moving that higher into the mid-80s, you’re going to see some movement at the loan-to-deposit ratio next quarter, Progress coming in, takes you to 79 on its own, so wouldn’t see — I wouldn’t be surprised to see a tick a little higher from there. So we like — again we like where we are, we’re comfortable in the mid-80s. But the balance sheet management and how we’re thinking about liquidity and deposits, it really starts now. So we’re not waiting for it to get to 85%. We’re managing and energizing the deposit franchise now to try to protect the loan-to-deposit ratio best as we can now.
Kevin Fitzsimmons: Okay, great. Thanks very much.
Operator: Our next question is coming from David Bishop from Hovde Group. David, please go ahead.
David Bishop: Yes, good morning.
Jefferson Harralson: Yes, good morning, David.
David Bishop: Good morning. Question maybe more for Rob, I know you mentioned. I think it was maybe the senior component in terms of office but just hopped off a call where there was another bank, maybe not your footprint, but maybe the size, we’re seeing some deterioration or some concerns around the Office segment, just provide us maybe what your exposure is there, and maybe what you’re seeing in terms of the health of your portfolio?
Robert Edwards: Yes, hey, David, this is Rob. So it’s around a $660 million portfolio, criticized and classified in that portfolio at the moment is about 1%, just over 1%. So we’re really not seeing a whole lot degradation there. It is a fairly granular portfolio, so not a lot of large dollar projects. Traditionally, we have focused on medical office buildings. Rich’s favorite phrase around this is that the office building needs to be able to fall down on the hotel if it falls down. So that’s kind of the — that’s kind of been our emphasis, but it’s a very granular portfolio and we’re not seeing really not seeing a lot of change in its performance.
David Bishop: Got it. And then a follow-up question on the — from Kevin. Just curious securities book the bond portfolio were on is, but of the quarterly cash flows. Thanks. I’ll hop off.
Jefferson Harralson: Yes, so roughly $200 million this quarter, maybe a smidge last I can get you the exact number.
David Bishop: Perfect, thanks.
