Russell Gunther: Okay. Thank you, Sherry. And then I guess in terms of your expectations for Fed rate cuts or staying stable, just what is baked into the margin guide for ’24?
Sharymar Calderon: For the first half of the year, we have rates pretty stable. We are incorporating some rate cuts in the second half of the year. We have modeled from like haircuts up to six haircuts — six cuts in rates, sorry through the end of the fourth quarter.
Russell Gunther: Okay. So the margin guide includes six Fed rate cuts.
Jerry Plush: No, no. What Sherry has given you, Russell, is we’ve looked at the sensitivity of none to up to that many. Our projection is that there’ll be several in the second half of the year.
Sharymar Calderon: Right. The guidance, Russell, that was shared with through the end of the second quarter for which our assumption is no cuts.
Jerry Plush: Right.
Russell Gunther: Yeah. Okay. Understood. Thank you guys for clarifying that. I guess I would ask then on the beta assumption. So cumulative 47% on the way up. How do you expect that to trend on the way down as you guys are thinking about those three cuts in the back half of the year?
Sharymar Calderon: Right. So if we think about our current portfolio, and we think about the average maturities on customer deposits, and we think about our interest bearing products resetting faster, we should be thinking of with a cut of 25 basis points, we are thinking of a beta closer to 40%.
Russell Gunther: That’s great, Sherry. Thank you. And then just switching gears, final question for me guys. Really strong expectation. Any color you could share in terms of loan mix drivers and then I think, Sherry, in your expense comments you mentioned additional cost around hiring folks if that is related to any loan growth expectations as well?
Jerry Plush: Yeah, look I think on both sides of — as I’ve said I’ve referred to it as consumer and corporate and in our consumer it’s predominantly additions will continue to make in private banking. We have an already strong team that has done a great job and we believe — and as I mentioned, we have a lot of people that have a strong interest in working with us I think the reputation of building through even with some of the ups and downs we’ve had in the financial results, the underlying performance of the company, the growth trajectory, people, all the branding we have been doing, seeing us in the community we had a lot of people that have a strong interest in being part of our team. Same thing is true on the corporate side.
We’ve added some great folks to an already good team, I mean a very solid team for sure and we are getting strong interest there. So it’s a combination of, remember last year we built throughout the year and now you’re going to layer even more personnel in and basically to put more folks in markets where we think there’s great opportunity where we’ve got strong presence already throughout Miami gate. We know that we can add incrementally to a great team we’ve got in Broward and to build even further in Palm Beach right. So just here alone in South Florida. And as we’ve talked about, we put a new regional headquarters that will be opening. We also have the new Tampa our first facility — branch facility going in there. There’s going to be addition on there as well.
So we did see — we’re taking advantage of lot of market recognition and a lot of people talking about us to add quality focused in both sides.
Russell Gunther: That’s great. Thank you, Jerry. And thank you both for taking my questions.
Sharymar Calderon: Thank you.
Jerry Plush: Yep. Thanks, Russell.
Operator: Thank you. Our next questions come from the line of Will Jones with KBW. Please proceed with your questions.
Will Jones: Hey, great. Good morning, guys.
Jerry Plush: Good morning, Will.
Sharymar Calderon: Good morning.
Will Jones: So I just wanted to stick on the growth discussion for a second. Jerry, the outlook really is a strong, particularly on the deposit side. I know a lot of your peers would really cherish being able to grow deposits at that pace. What do you have to pay on new deposits to attract that kind of growth in this upcoming year?
Jerry Plush: Yeah, I don’t know that it’s much to pay on the deposits, it’s asking for the business. I think this is a shift — a cultural shift in our company where we’ve really emphasized, I’ve been talking about it from the previous quarters about deposits first is job one. And I just think asking for the business right. We had been very siloed in approach, years ago, and the change culturally in the company, it’s coming through in the numbers. I actually think, Sherry made a great observation in your comments that we’ve almost got an incredible opportunity not almost, we have an incredible opportunity because of the new treasury management platform coupled with a much smoother account opening process on the consumer private bank side where it’s only a couple of steps.
I’m really excited to see the change I think we can make in noninterest growth where as opposed to it having to be, hey, we’re growing because we’re out issuing time deposits or high rate money market.
Will Jones: Yes. That makes total sense. And are you seeing any green shoots in an international deposit base. I know you guys have been really excited about maybe trying to see an inflection point and the growth in deposits there. Is any of that guidance factoring growth within International deposit base?
Jerry Plush: It’s an area where — I’ll call it the strategy is evolving. We think we’ve got the right marketing, the right Intel that we’re developing and we’re going to give you guys as we come into, I’ll call it conference season probably more and more from the investor presentations more details on how that’s evolving. So I would tell you it’s an area where the team is working hard. They are definitely getting new business. We have some areas where we want to sort of, I’ll call it fine-tune and focus on. And so that’s one where I would say maybe by the mid February later first quarter we’ll be able to give even more color about how that’s going to play out through 2024.
