Question-and-Answer Session
Operator
(Operator instructions).Your first question comes from John Pancari - Fox-Pitt Kelton.
John Pancari - Fox-Pitt Kelton
Can you talk a little bit about the runoff of Franklin deposits during the quarter? I know the runoff was trending a little bit less than what you had thought as of last quarter I wanted to see if that is still the case in the second quarter.
Dan Rollins
Yes, I think that we’re down $100 something million in the quarter. We continue to see high cost, what we refer to as hot money CDs, higher cost CD money and non-relationship money, customers that have just one CD or two CDs with us with no other relationship in the bank.
We are not paying up for that money. We don’t have a desire to have non-relationship type customers like that and we continue to be on track. I think if you look at where we are today, we are at $1.7 billion and change and what you heard us say when we made the transaction was we thought we would be at $1.5 billion give or take at year end. I think David actually thought we maybe even substantially lower than that. So, I think where we are today...
David Zalman
Yes, Dan, I would say that I’m kind of really impressed with where we are at, Dan and I disagreed a little bit, but I thought we could drop as low as $1.2 billion to $1.4 billion. So at $1.7 billion today, I think we are still doing a whole lot better than we thought we would and having said that, though, we still see maybe a couple $100 million or more in roll-off as some of these 3% and 4% CDs roll-off.
Dan Rollins
That’s right. I think we are still ahead of target, you saw it speed up a little bit. What that is, John, is there’s buckets of money Franklin was a high rate payer with several retail promotions rolling throughout the year. So, when they would have their big retail promotion and promote 4% money for whatever the term was, as we get to those we are holding some of that money.
We are doing as we said a better job than we thought we would be, but there’s still some lumps coming through the pipeline here that when we get to a place that there was a big slug of 3.5% or 4% money we are going to lose some of that and quite frankly, I think we want to.
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