Dean Shigemura: Sure. So, looking at the wholesale funding, it was a combination of several factors that, one was to just supplement the current funding that we have in our deposits. We did want to protect ourselves or at least hedge a portion of the — our outlook on rates where if the Fed stays higher for longer in terms of Fed funds, these longer-term funding — fixed rate funding does give us a little bit of advantage there. The average rate on those were about 3.92%, so below Fed funds currently. So, it does protect us a bit there. Going forward, it’ll just depend on how deposits balance levels of transition. But we also are looking to the portfolio where we traditionally have that running off. The runoff from that could help fund the loan growth.
In terms of the noninterest-bearing, yes, from what I can see, it wasn’t unusual that we had a drawdown. There is a kind of a shift to higher-yielding deposit products. Now that Fed funds is at 4.5%, lot of the — some of the drawdown did go to higher-yielding products. And then, there was some that were just coming off. We had some title companies that had projects that were closing in the quarter that also took some money out. So that was kind of independent of the rate environment.
Peter Ho: Yes. I mean, it wasn’t terribly surprising to us to see money moving out of noninterest-bearing. That’s still — that was last quarter, 34.9% of total deposits. This quarter, 32.6%, so 3 point drop there. Interest-bearing demand was basically flat and savings was basically flat. So, kind of the catch all was in time. And your question about the government deposits, that was pretty much flat in terms of demand and savings on a linked basis and then up on time — government time deposit, Laurie.
Laurie Hunsicker: Got it. Okay. So, I had your public time deposits at $180 million last quarter. Is the delta increase there in your total public deposits? Is that all time? Or do you have an that number there?
Peter Ho: Yes. So, total public deposits, last quarter was $1.236 billion, this quarter is $1.706 billion. And public time was $180 million in the third quarter, and $587 million in the fourth quarter.
Laurie Hunsicker: $587 million. Okay. Got it. That’s helpful. Okay. And I mean, your loan to deposit ratio is so beautiful. Your loan to core deposit ratio is so beautiful. I mean, any liquidity concerns or how are you thinking about that?
Peter Ho: No, we don’t have liquidity concerns. I think we frankly, we’re priced too tight intra quarter and we’re kind of hopeful of picking up more deposits in the quarter. And when that didn’t transpire, we had to move, obviously, to more wholesale funding sources. So, with the teams both consumer and commercial are working on for the coming quarters is to be a little bit more dynamic from a pricing standpoint to generate more volume levels.
Laurie Hunsicker: Okay. Great. And then, Mary, just one quick question for you. And, certainly, your credit looks great, all the way around. But specifically on the auto piece, can you just help us think about that? We saw, obviously, a pretty nice jump in auto loans this quarter. Was that purchased, or what was that? And then, I guess, the charge-off there, seems like that’s just one area of weakness that continues to grow and, certainly, there’s a concern more generally within consumer even though your consumer book is so high. Can you just help us think a little bit about that? Thanks.
Mary Sellers: Sure, Laurie. If I look at indirect, our 30-plus this quarter in terms of delinquency was 1.82%. And that’s versus 1.38% from the prior quarter. But if I look at 2019, we’re still below that at 2.24%. And what we saw in 2018 when our delinquency rate was running 2.28%. In terms of charge-off rates in indirect, we averaged 35 basis points this year and, in 2019, that was 59 basis points and, in 2018, that was 88 basis points. So, in early stage, we did the 30 basis points to 59 basis points, we saw a modest uptick, but still below what we’ve been seeing pre-pandemic. But we would expect as consumers come under more stress that we would see that our portfolio to normalize a bit. But right now, our less than (ph), everything — all the metrics aren’t showing a huge decline in quality.
Peter Ho: Yes. And Laurie, just to note because I think it’s important, we don’t do purchase in
Mary Sellers: Portfolio, yes.
Peter Ho: Yes, we don’t purchase portfolios. So, all of our indirect — all of our consumer is organically driven off of our delivery channels.
Laurie Hunsicker: Okay. Got it. Okay, thanks. I’ll leave it there.
Peter Ho: Thank you.
Operator: At this time, I show no further questions. I would now like to turn the conference back to Jennifer Lam for closing remarks.
Jennifer Lam: I’d like to thank everyone for joining us today and for your continued interest in Bank of Hawaii. Please feel free to contact me if you have any additional questions or need further clarification on any of the topics discussed today. Thank you, everyone.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
