He was the top correspondent banker at First Horizon. I don’t want to scare you he actually had $700 million in deposits in his portfolio. So we’re going to be working with him hopefully, we can stem and grow correspondent hopefully the core customer deposits. You know that the larger more rate sensitive may be have fled and definitely second half to your question, but I would love to see in the first half, we’re we can begin to add deposits. It may come at a thinner spread, where maybe we can outgrow some of this on NII, even though it hurts margin a little bit, that would be the goal. Want to monitor the trends of fourth quarter to make sure there’s, not further customer declines.
Kevin Fitzsimmons: Okay, that’s helpful. And that’s kind of leads into my next question that I was going to ask you about loan-to-deposit ratio here is about 86% given your outlook for loan growth and what you just said about deposits, is it seems like the goal is mostly fund loan growth with deposits. But obviously deposit side is larger.
Tim Schools: Keep in mind — keep in mind, you know that’s sort of public reporting or regulatory reporting that our loan to customer deposit ratio is probably more 90%, 95%. When you report deposits, especially in this environment for our bank and others, brokered CDs are reported in deposits. So when you look at that chart in our PowerPoint of the loan-to-deposit ratio in the 80 range, that’s with the benefit of $150 million or so of brokered CDs already. So I would say our core if you want to call it that our core loan-to-deposit ratio is probably around 95% or so, right now.
Kevin Fitzsimmons: Where do you want that to be Tim, where are you comfortable with. with that being.
Tim Schools: That loan-to-deposit ratio?
Kevin Fitzsimmons: Yes.
Tim Schools: I think in that range. You know, back when we first met when I was at SouthTrust, I’m pretty sure our loan-to-deposit ratio was 115 or 120 and I’d have to go back, that’s how banks used to run back then. I don’t think that’s well-thought-out today, so we generally have from memory our Board approved policy for wholesale funding is 25% of assets. And so obviously, the best balance sheets in America are banks that are 100% customer loans and 100% customer-funded. So I think up to 95% to a 100% customer-funded. And then have availability on that 25%. And right now we’re using some of that 25%. So as I said, the customers and the 95% range and we do have that. So I think in this environment, you’re going to use some wholesale.
I think you are going to use some brokered CDs, especially with our type bank and balance sheet, but I really look forward our team has done anything we’ve asked them to do and I’m actually looking forward to getting involved myself this spring and trying to get correspondent going with Chuck on our new guy. And hopefully, the most rate-sensitive has slowed and we start to get some traction. On that same topic, Kevin, just because we forgot to bring it up I know it’s unrelated, but talking about the best balance sheet of customer on both sides, this is sort of irrelevant to today’s discussion that we showed our Board this quarter. CapStar shared national credits this quarter. I think our 0.3% of our loans, which we’ve really turned the loan side to a customer balance sheet and that would be my goal on the deposit side, long term.
Kevin Fitzsimmons: Great point. Thanks very much, Tim.
Tim Schools: Thank you, Kevin,
Operator: And thank you. And one moment for our next question, please. And our next question comes from Feddie Strickland from Janney —
Feddie Strickland: Hi good morning.
Tim Schools: Hi, Feddie.
