Matthew Sealy: Yes, Graham. So like we hit on earlier, deposit growth was strong and expected, so that’s going to drive up the cost a little bit more. But what I think we were quoting when we were talking about 30% betas previously, and typically the way that we’ll tend to talk about things are cycle to date betas. And so you’re right, for the fourth quarter, just the quarter was 40% total deposit beta. However, cycle to date through the fourth quarter since the Fed started moving was 25%. So when we look at it that way, we’re still right in line with where we think the betas are going to trend up over time. And through the balance of this year, I think that we’ll see that creep up a little bit closer to 30%. But that cycle to date beta is very much in line with what we had thought previously.
Quarterly gets a little choppy because when you look at quarter-over-quarter depending on what the Fed does and how the forward curve moves that could be a little misleading, depending on how you’re looking at it.
Jude Melville: Depending on what time in the quarter.
Matthew Sealy: Correct. Yes. Yes.
Graham Dick: Okay, great. That’s helpful. Thanks for the clarification there. On noninterest-bearing deposits, are you guys expecting to see, I don’t know, up down, way down? Or what’s kind of your outlook there on that part of the funding base?
Jude Melville: Yes, I think we grew from year-over-year in non-interest bearing, we continue for that to be a huge focus for us to continue that growth. That will be a challenge as the whole marketplace liquidity is an issue through all banks. So it will continue to be our focus. But we understand the as a challenge has, but accumulating customers that are C&I focused for us that have that noninterest-bearing part of their balance sheet as a priority. As we’ve talked about previously, we’ve certainly geared some of our incentive plans towards noninterest-bearing. And then we’ve also made a number of hires in the treasury management department over the past year. And so that’s the goal there, and we feel like we’re making the right investments and doing the right things. So we’ll just have to see how the economy as the whole interact for us in that regard, but we certainly have it as a number one priority, I would say.
Matthew Sealy: And I would just add that we do see the balances increasing during the first quarter. However, the composition might remain flat or even potentially down as interest-bearing there’s just more low-hanging fruit and more opportunity on the interest-bearing side. But we do see the aggregate balances going up in the first quarter of noninterest-bearing.
A – Jude Melville: Part of the reason the composition might change a little bit is as we spoke about last quarter. The first quarter is typically when we see an inflow in municipal-related deposits, many of which are interest-bearing. So that’s that would partially help explain even if we had an increase in noninterest-bearing, we may still fall back a little bit as a percent, but that would be a fair trade all for us.
Graham Dick: Okay. And then I guess just one more, but turning to expenses. They’re pretty well marshalled this quarter. Kind of what lift are you guys expecting to see, I guess, over the course of this year? I know you guys are still building out the franchise and investing in it, trying to get a sense of kind of leverage maybe will drive out of the expense base this year.
Jude Melville: Yes. I think in the first quarter, what we expect to see is a 4%, 5% increase over Q4, still some seasonality and some things from that standpoint. But if you look at the balance of the year, I think you’ll have a normalized — more normalized path after Q1 and probably looking at a 10% growth track throughout the year.
