George Gleason: Yes. yes, I’ll jump into that, Catherine. The €“ I don’t know exactly the funded versus unfunded dollars off the top of my head. But with respect to leasing, that as we’ve said, some of the projects we originate have pre-leasing when we originate on some or spec. And €“ but when we look at projects that that are complete. We are seeing continued green on the screen moving forward with improved leasing. Obviously, there is a range of results across that portfolio, but we are still seeing positive leasing momentum in those projects. And as I said, the newer stuff that we’re putting on the book is predominantly going to have pre-leasing involved with it. So on the whole, as we’ve noted numerous times, the flight-to-quality thesis, we are seeing that continue to play out, both in the loans that we have in our portfolio and in the markets generally in terms of the lease activity that we see out there.
Again, there is a range of success across the portfolio, some slower than others, some knocking it out of the park. But on the whole, we’re pleased with what we see there.
Catherine Mealor: Great. And then on €“ back to the margin conversation, can you talk to us about where your deposit rates work towards the end of the quarter just to get a sense as to where funding costs might be coming as we reach the near to peak Fed?
George Gleason: Cindy?
Cindy Wolfe: Yes. Catherine, this is Cindy. December was 1.66% on cost of interest-bearing deposits.
Catherine Mealor: And on average €“ I know your CD rates kind of range in different markets. But on average, we’re a new CD is coming on?
Cindy Wolfe: I don’t have that information. I don’t have an average, and you’re right, it varies depending on the market.
Catherine Mealor: Okay. And so then €“ back to your previous comment, George, about NII growing from here. Should we think about that on a year-over-year basis? Or should we think about that from a fourth quarter annualized basis because you’ve seen such a big increase in your NII growth over the course of the year. So just trying to think about obviously, as the margin peaks and then fall, I think year-over-year growth is, for sure, going to happen just given the ramp we’ve seen throughout the year. But is it fair to say we could see just from this quarter’s annualized run rate, a little bit of a compression just NII at that margin falls as funding cost increase?
George Gleason: Tim, why don’t you take that one?
Tim Hicks: Yes, Catherine. Yes, you’re correct. Year-over-year, obviously, we have find up the potential to have a really, really strong year-over-year comparison. If you’re comparing it to just each quarter compared to fourth quarter, I think there will be one or more quarters in which we have higher net interest income than we did in the fourth quarter.
Catherine Mealor: Great. Okay, that’s very helpful. Alright, thank you.
Operator: Thank you. Our next question comes from Matt Olney from Stephens. Your line is open.
Matt Olney: Hey, thanks. Good morning. I wanted to ask more about capital and specifically the CET1 ratio. It’s come down a little bit over the last few quarters from the strong loan growth. I’m just curious what you think about further capital deployment and what you consider the floor for the CET1 ratio? Thanks.
George Gleason: Tim?
