Matthew Clark : First on just the funding mix going forward. Loan growth slowed. Let’s just say you cut it in half. That would imply net loan growth of about $65 million. That’s consistent with the cash flows you kind of coming off the investment portfolio in the upcoming quarter. I guess I’m trying to get a sense for, do you think deposits can stabilize here, maybe even grow? I’m trying to get a sense for should we be assuming the borrowings continue to increase here or not?
Jeffrey Deuel : That’s a tough question. So I’ll be happy to pass that one to Don. And I would just say, Matt, the circumstance we find ourselves in is deposits have essentially stabilized and started to trend a little bit up at the end of the quarter, but we expect that the competition for deposits will continue as the year progresses, especially with the potential for a rate hike. So I don’t know if we can expect lots of deposit growth, but I think we would steer towards maybe deposit stability, and that will be dependent on what rates do during the rest of the year. Don, you probably have a couple of comments you’d like to add to that.
Donald Hinson : Sure. Matthew, the — you’re right on the investments. They’re throwing off on average. In fact, we had to put a new slide in our deck this time on cash flows. So hopefully, you can look at that. But at least uses a lot of the need for funding on the loan side, depending on how much we actually end up funding this quarter. If we — I would say at this point, we are not expecting to do any more borrowings. But at the same time, even if we have deposit stabilization or growth in Q3 that we probably won’t pay down anything either just because we — you just never know what’s going to happen around the corner at this point, and we’ve got some pretty attractive rates on our borrowings. And so I’d probably — and in fact, we’re earning — especially once the Fed raises rates, our — cost of those borrowings are the high 4s, and we’ll be earning overnight in the low 5s.
And so I’m hesitant to pay those down until we really start — everything really starts stabilizing and maybe even seeing rate cuts. So I don’t think — I’m not expecting to borrow more unless we see another surge of deposit runoffs. But again, probably not going to pay them off.
Matthew Clark : Okay. And then just a couple more on the funding side. Can you quantify the pipeline of deposits? And also what was the timing of the transfer from FHLB to BTFP? Just trying to get a sense for if we saw the full quarter benefit of that.
Donald Hinson : Well, I’ll start — maybe Bryan can talk about the deposit pipeline. The actual blended rate, I don’t remember exact timing, I think it was May. But the blended rate for these funds is 4.74%. So it was only slightly different than we showed on the information. And there’s a slide deck on that — slide in the slide deck on that, too. But the go-forward blended rate is 4.74%.
Bryan McDonald : And Matthew, on the on the deposit pipeline, it was $118 million, and this is just balances associated with new deposit customers coming to the bank. It doesn’t count deposit funds from existing customers or outflows and that sort of thing, and we opened about $46 million. And the balance is associated with the accounts for brand-new customers we opened last quarter was about $46 million. Customers open the accounts, and that’s typically a transition process for them to — particularly for the commercial customers to move banks. So it doesn’t typically all come within a week or 30 days, that sort of thing.
