Mike Price : I think it does give us runway. I think that we’ve proven with 7.5% loan growth last year. Notwithstanding our acquisition of Centric in the new capital region and that we can generate deposits. And then through this first quarter, even if it cost us a little some and some. And so we’re excited about that. And we’ve also grown deposits. The deposit households, as Jim mentioned, and so we’re going to taper and dial that in better and better each quarter. But we’re also excited about growing the corporate bank, maybe a real estate deal or two this year and turning that back on a bit, but more importantly, growing C&I, small business, SBA, which will become the core of the company over the next five-plus years. And so we’re optimistic about the future and our ability to grow.
Karl Shepard : Okay. Thank you both.
Jim Reske : Before our next question, if I could circle back, I said 7 basis points in accretion was actually 7.6. So it around 8. That’s purchase accounting accretion for the first quarter just ended, just for the record.
Operator: Next question comes from the line of Kelly Motta with KBW. Your line is open.
Kelly Motta : Hi, thanks so much for the question. I guess, kind of picking up on growth picking up on the question there. Just wondering if you could talk a bit about your pipelines where you’re seeing opportunities and the best opportunities where you’re seeing the most demand from your clients?
Mike Price : Yes. Right now, on the consumer side, we have pinched the volume there really across the board, and we’re just replacing what is running off at best. On the commercial side, our SBA business has a pretty good pipeline. C&I, the pipelines are building somewhat depending on the region. And commercial real estate, the demand there is still tamped down, and we — but there will be a deal or two there. So it’s not fulsome, like we were growing maybe two years ago, where seem like each year, we would guide in the high single digits, and we would eclipse that. Now our guidance is probably more like mid-single digits.
Kelly Motta : That’s super helpful. Sorry to mean to cut you off.
Mike Price : No worries. I just have Jane Grebenc, our President; and Mike McKeon, our Executive Vice President of Corporate Banking. Anything that the two of you would add. This is an important consideration on loan growth.
Jane Grebenc : Sure. A couple of things. We are bullish on SBA, and it’s important to note that only 25% of that hits the balance sheet. The other 75% ultimately gets sold and we get the gain on sale income in lieu of the balance growth. So we’re seeing good SBA business. And Brian has reminded me that the SBA business that we are booking now is probably the best we’ll see because it’s able to be approved under today’s interest rate environment. So this is all good stuff. Most of that SBA is business acquisition. And so we do like the SBA business a lot. And then as Mike said, the commercial business is a little bit more muted, but we are seeing pipelines growing and I think we — I think customers and prospects are starting to finally think maybe the recession isn’t right around the corner, and they’re starting to spend a little bit.
Kelly Motta : Got it. That’s super helpful. Thank you so much. And then maybe actually then switching to fees, mortgage, you had a nice quarter for mortgage. And in your prepared remarks, you mentioned selling more production there. And you just mentioned SBA and I’ve heard from some other banks that the premiums have come back a bit in that line item. Just wondering if gain on sale was in both lines were pretty strong this quarter. If this is a good run rate for those items and any sort of puts or takes off of Q1 levels would be great.
Mike Price : Yeah. Jane, any thoughts?
Jane Grebenc : Well, we feel good about the volumes. And you’re right, the premiums have come down in both businesses, some — it just means we have to work harder for each dollar. But I think the run rates in both businesses are — I don’t want to overpromise, but I think we’re about where we’re going to be.
Kelly Motta : Got it. That’s helpful. I will step back. Thank you so much.
Mike Price : Thank you.
Operator: Next question comes from the line of Matthew Breese with Stephens.
Matthew Breese : Good afternoon, everybody.
Mike Price : Hey, Matt.
Matthew Breese : Mike, just a point of clarification. So traditionally, when we talk about kind of mid-single-digit loan growth, it’s usually all inclusive, but we’ve definitely made a difference this quarter in talking about commercial versus consumer growth. When you point to mid-single-digit growth for the rest of the year. Are you implying all in loan growth? Or are you just commercial growth and that means we’ll probably see loan growth similar to what we saw this quarter?
Mike Price : I’d like to see it all in, which means we would get maybe a little tailwind from the consumer side. Maybe a little — we’ve done a nice job of pricing our consumer and maintaining some volumes, particularly in the indirect auto, which is an end market business. And so we can maybe get a tipping point there and maybe some tailwinds and so — but maybe be more — it will be — have to be commercially driven. But that is for the whole year, and we would have to do a lot more in the second half of the year undoubtedly.
Matthew Breese : Okay. So all-in loan growth is probably more than likely to be on the lower side of the mid-single-digit growth with commercial being kind of the X factor.
Mike Price : I suspect you’re right, but we’re going to hold our feet to the fire internally 5%.
Matthew Breese : Fair enough.
Jane Grebenc : Yeah. Mike, we could turn up consumer loan volume, but we would have to blink on price, and we’d have to blink a little bit more than we’re comfortable blinking, right this minute. The auto business is softening a little bit. So if we wanted to turn it up, we’d have to compete on price.
Mike Price : That’s right.
Matthew Breese : Got it. All right. And then, Jim, maybe just a couple for you. You pointed out in your opening comments that we do have a bit more liquidity on the balance sheet today. Securities also grew a little bit. I was hoping so for hoping for some more color on those two items, strategy around securities at this point and liquidity deployment.
