Timur Braziler: Right. Okay. I appreciate that. And then just lastly for me, the C&I growth all year and in the fourth quarter was quite impressive. I’m just wondering, how much of that is increased utilization, if any? How much of that is new client growth? And then are you able to get deposit relationships with those new C&I clients that you’re bringing on board? How much of that production is actually being self-funded?
Tom Cornish: Yeah. I would say that, we saw a very little lift from utilization throughout the year. When we look at production in the C&I teams throughout the entire year, it was a very strong new client production, new relationship production. We are able to get significant deposits out of these, most our general focus is on relationship banking opportunities, and these tend to come with strong depository and treasury management type relationships. But we didn’t see much lift at all in utilization rates throughout the year. So we’ll see how that plays out into 2023. Originally, when we started the year, we thought we would see more lift. We thought we’d see maybe 500 basis points of lift. We didn’t see that. It stayed pretty flat throughout the year. And if that were to pick up, that would help us as well. But what we did this year was really a lot of new relationship production this year across all of the C&I segments.
Timur Braziler: Got it. Thank you for the color. Appreciate it.
Operator: Please standby for our next question. Our next question comes from Steven Alexopoulos with JPMorgan. Your line is now open.
Alex Lau: Hi. Good morning. This is Alex Lau on for Steve.
Raj Singh: Good morning, Alex.
Tom Cornish: Good morning.
Alex Lau: My first question is on deposits. Can you talk about the decrease in non-interest-bearing deposits? What are your clients moving those balances to? Any color on whether it’s moving internal or competition from T-bills or in other regional banks?
Leslie Lunak: You’re talking year-to-date. We’re not talking this quarter, because we didn’t experience that this quarter in non-interest-bearing deposits.
Raj Singh: Well, we do. Yes.
Leslie Lunak: In interest — oh, sorry, sorry. I misunderstood your question. I misunderstood your question
Raj Singh: Yes. So it’s a laundry list of things. So there’s still a slowdown in the real estate industry. We’re seeing our title business average balances in those accounts from the smallest, the largest, everything declined. So it’s an industry-wide trend. That is one. We saw people — our clients use money for buybacks or dividends, just distributions. That was a fairly large category. Also, I’d say, as ECRs have moved up, they need to keep balances to avoid fees from the bank. That needed balance have gone down. So when that happens, capital frees up and it moves into money market or leaves the bank and goes, go out and buy treasuries. We don’t have a wealth management business. So we’re not seeing that. Corporate customers don’t typically take money out the bank and buy treasuries, though some of that might be happening with whatever small retail business that we do have.
So it’s a mix of those things. But I’d say that the real estate industry suffering is still probably our largest driver, followed shortly with just people taking distributions and using money for either investments or buying properties or what have you. So there is — money is not being left idle and people are much more corporate customers, commercial customers, they are much more aware that — of the cost of idle money.
Alex Lau: Thanks, Raj.
Tom Cornish: Yes. Just, Alex, in 2021, there was a pretty substantial buildup in corporate deposit balances across really all industry segments coming out of the pandemic that has just been utilized.
Raj Singh: Yes.
Alex Lau: Thanks. And as a follow-up to that buildup, any sense of how much DDA is considered excess deposits per your customers before they get to like a core operating DDA level?
Raj Singh: No, that’s very hard for us to do.
