Brady Gailey: Okay, all right. That’s helpful. Then finally for me, cash levels continue to come back down. If I look at cash to average earning assets, I think it’s about 5% today, that was 18% last year at this time. Just talk about where do you want to keep cash longer term, like what’s the floor, and then what implications does that have for the bond book? Should we think about–you know, with you guys still growing loans and deposits potentially being flat here, should we think about the bond book starting to shrink in 2023?
Nicole Stokes: Great question, Brady. Our investment portfolio as a percentage of assets, earning assets, it’s about 7%, 6.5% to 7%. It would normally run in that 9% to 10% range, and so we have been programmatically buying bonds. In the fourth quarter, we bought about $100 million a month, and so we’ve been growing that bond portfolio. That ties into your cash question, that we really kind of–we take our bond portfolio and our cash, because remember we don’t have all the unrealized loss in the bond portfolio that some of our peers have, and so our bond portfolio is sellable with very little impact to regulatory capital because of our AOCI position, and so we are able to consider our securities and our cash in our liquidity ratio, so we keep that liquidity ratio in that 10% to 12%.
If you ask where is our kind of minimum there, it’s that 10% to 12%, between those two, so that’s where we are. I would expect to see cash kind of staying at that 5% and then, depending on what the market does with the bond portfolio, I think it would stay kind of in that 7%, possibly growing to 9%, but there’s so much uncertainty in the market today. One thing I wanted to add there, as I think about here, is just kind of our loan to deposit ratio at 102 and that people see that maybe elevated. But I wanted to point out that if you take loans plus investments, because our investment portfolio, we don’t have the AOCI dilution, and it is a liquid asset for us. If you take loans plus investments to deposits, we are right in line with peer. Where some of our peers have bond portfolios that are very low yielding, they can’t sell them because the AOCI impact becomes realized and affects their regulatory capital, so we have used some of our loans and some of our loan purchases to offset the bond portfolio, so we really view that together.
Then on the liquidity funding side, our brokered CDs, I think we’ve already said it probably twice, but we really have minimal brokered money – it’s less than 1%, and our FHLB borrowings are less than 6%, so we have room on the liquidity side, and like I said earlier, if we had not done the FHLB advances and we had gone the brokered deposit route instead, that loan to deposit ratio would be less than 95% and it wouldn’t be quite the outlier. But again, we manage that funding source from a profitability and ROA perspective and margin perspective.
Brady Gailey: Okay, that makes sense. Thanks guys.
