Catherine Mealor: Certainly, it looks from the €“ where new loans are coming on, you’ve got a lot of upside from that current core loan yield. As you look out, you think the kind of quarterly betas probably continue at this pace, Rob, on the loan side.
Robert Gorman: Yeah, yeah, definitely, Catherine. Definitely, on the loan side, we’ll see that pace continue. It’s really about how the deposit betas are going to react, both the individual banks having to fund their loan growth, but also the competition in what rates look like in terms of what betas end up being. We will be definitely competitive on that front.
Catherine Mealor: Maybe just one more on the margin on just on borrowings. I saw the end of period borrowings were up a little bit. How are you thinking about overall borrowing levels into this year?
Robert Gorman: As we said, we had a late quarter run-off in deposits. So, we had to pull in some funding as loans continue to fund out, which we want to make sure that we put those loans and have the funding accordingly. We ended up borrowing from the Federal Home Loan Bank. We will continue to see some of that kind of as a play between what deposit growth is and what loan growth is. But we’ll be pretty disciplined around using wholesale funding mechanisms, whether brokered CDs or Federal Home Loan Bank. We’ve typically run at higher levels through the pandemic. We didn’t need to. But we got run off late in the quarter, we had to call on those resources, and we did. But we’ve got a number of levers to pull on that front. And the way we look at it is that the lowest cost wins the battle, if we need to
John Asbury: levers to have, they’re important from a diversification standpoint. But, ideally, you wouldn’t use them at all. FHLB, in particular, I think of as a swing line, meaning we were able to tap that as we needed at year end. We’ll see how things continue from here. But we’ve had a good month in January in terms of deposit growth. I hope that means Rob will be paying it down. But we’ll go into
Robert Gorman: I was saying, we’d rather have core deposits on the books €“ not have to draw down on wholesale because they’re obviously a little more expensive funding. But I think we’ll always have some of that.
John Asbury: Having been here in the six years, the only time I’ve never seen us not use the FHLB line at all was during the pandemic. So some amount of it is typical for us.
Catherine Mealor: Great quarter.
Operator: Our last question comes from the line of Laurie Hunsicker with Compass Point.
Laurie Hunsicker: Just wanted to stay where Catherine was on the funding side. I’m just trying to understand this. You had a significant jump in the short-term borrowings. And they are, on a percentage basis, one of the highest we’ve seen, right. So, you’re up $1.8 billion. And I just wanted to make sure I sort of heard that. You’re going to likely rewind that back down? Just looking at the average balances, it looks like most of that came off late in the quarter. So not rolled into, obviously, a full quarter impact. Just trying to connect all the dots there. And then, just one more question too around that. Do you have a spot margin at December 31? Or maybe even current how we should be thinking about that?
