Thank you, it’s very helpful. And then separately. I was just wondering if you can update us on the status of your core systems conversion, the March Madness at all impact the progression of the conversion of the timing of the expected conversion? And then lastly, can you maybe help us with the sizing up of the cost of the conversion and how much is expected to be capitalized?James Leonard Yes, John it’s Jamie. Thanks for the question. As you saw in the expense numbers, this quarter, we did have continued ramp up in technology cost that ultimately is a good thing, because it means we’re getting things accomplished. And we continue to track on all of our deadlines for this year. We have new ledger going in in the third quarter, followed by CD platform as well as continued rollout of the nCino platform across the commercial business.And then we’re really at this point about halfway through the game, because 2024, 2025 has additional deadlines associated with it on ATM and TM billing as well as the core checking conversion, but so far, so good.
We do capitalize and follow the appropriate accounting standards on the total spend here. I think the spend over a multiyear period could reach as much as $100 million, of which a little less than half would be capitalized. And from there, I think you just continue to see us invest in cloud core technology. And that’s part of what’s driving that expense growth. You’re seeing both in the first quarter and for the year.John Pancari Got it. Thank you, Jamie very helpful.Operator Our next question comes from the line of Manan Gosalia from Morgan Stanley. Please proceed.Manan Gosalia Hey, good morning. I was wondering if you could give us some more color on why you expect deposits to grow as we get into the remainder of the year, what are you seeing in your underlying account openings and conversations with clients that gives you the confidence in that outcome?
I guess my question is, why shouldn’t some of these new deposits just go back to the banks, where they have longer relationships? So once the volatility in the in the system settles down.Timothy Spence Yes good question. So I don’t think we took a lot of deposit share from banks that were non-operational in nature. The new accounts that we opened Manan were linked to treasury management sales and inclusive of our embedded banking business. And we’re had been on the sales pipeline, in some cases for as long as 18 months, and there had been technology work that ended up getting accelerated. In a handful of other places like we do a very good business with payroll processors. We were a net beneficiary of folks who needed the payments infrastructure that Fifth Third provides, and those relationships which were not on the sales pipeline previously moved.
And because they’re embedded in the day to day operations of the business, they tend to be very sticky. And I mean, look that you kind of have to go back to first principles for us on the deposits to say why do we believe that we can continue to be stable or to generate a little bit of growth.So big part of the growth that we’re generating on the retail side is coming out of that sort of sustained primary household growth that we’ve been able to generate. We’ve run in the 2% to 3% range for several years now. We’ve breached 3% in the first quarter. We were running faster than that. And that is led by the southeast markets where I think the year-over-year growth rate was like 7.3%. So very significant there.In addition to that, the branches we’ve added in the southeast are driving really, really strong growth.
So if you look at the southeast, overall, same store sales and deposits were a plus 5% year-over-year for the quarter, if you include the de novo the markets like North and South Carolina, Georgia and Florida in totality grew 10% year-over-year, and if you just annualized the first quarter, over the fourth quarter, they grew 20% in terms of deposits, so really strong production come in from those investments. And then I think we’ve talked a lot about the treasury management business, but that on the commercial side of the equation continues to be the thing. That is the driver, we have a disclosure in one of the slides here on the percentage of commercial relationships that are linked to Treasury Management, it’s about 88%. If memory serves, maybe slide nine.And then the length of a that balance weighted average relationship tenure and commercial is 24 years.
So we’re not talking about people who were parking money here, because we were a ratepayer, I think we have only about a half a billion dollars in total in all deposits in the bank that are priced ahead of Fed funds. And it’s reasonable to assume that whether it’s because the Fed raises or because we take other actions that that number is going to be zero by the end of June. So we just have a very stable deposit base, the growth is coming from investments that are multiyear in nature, and that are proven in terms of their ability to support the company and very little deposit gathering activity that would have been on economic relative to alternative funding sources, less than a half a billion dollars, I believe in total.Manan Gosalia Got it, very helpful.
And then maybe as a follow up, and maybe the response to this is the same. But as I look at the deposit beta assumptions on slide 11, they look pretty conservative relative to the rest of the street. But if I look at the slope of their line, it is flattening as we look into the forecast period. So why shouldn’t we expect the same rate of change that we’ve seen there more recently?Timothy Spence Yes, our base view, as I said in our prepared remarks are the midpoint of our guide is a 47% beta. And that is really driven by our assumption that the battle for retail deposits continues to be very competitive, and that that retail beta actually doubles over the course of the year. If that were to not happen, then we would be at the at the low end.