Richard Dutton: I guess as we kind of did the forecasting for the year, I would tell you the mid-single-digit growth rate was really for what I would call the bank — the bank loan portfolio. And then we’re going to layer on top of that. I think our projection was, I think, roughly $165 million of production on the leasing side. We’ve kind of modeled it out right now. And we to say we’re going to hold about half and sell about half into the marketplace. Obviously, as we look at our funding throughout the year, we’ll probably move that one way or the other a little bit. But bottom line is that’s kind of how we got to model out.
Manuel Navas: With kind of the pricing changes at the end of December in the deposit portfolio, what are kind of our expectations of that has the beta changed at all? Like what are you kind of targeting going forward? Any kind of firm guidance on that end?
Dennis Shaffer: Well, beta will definitely change. I think as I alluded to my comments, I think to get a little bit more aggressive there. Rich got a guidance there for us is…
Richard Dutton: Well, I mean I think our deposit beta for the fourth quarter was, what, 11 basis points. And I think what we’ve modeled going forward is probably more like, I think, I want to say in 12 basis points Again, I think we’ve kind of lagged and will continue to lag, but I think the velocity of increases in our deposit rates is going to pick up. But again, I think first half of the year, you’re going to see our margin continue to expand, and it kind of depends on what the Fed does on the back half of the year. But I don’t see it compressing. It will expand to a point and probably hang out there until the bid makes a big move up or down.
Dennis Shaffer: Well, we keep watching the — I think the kind of the slope of this interest rate curve, it’s gotten a little bit more inverted. So I think you’ll see us — I think probably other banks trying to — on the lending side push their loan yields up, push their spreads up more. I think they were keeping pace with the velocity of the interest rate increases. And I think you’ll see that more normalize a little bit in ’23. At least for us, we’re going to try to push our own spreads and lease spreads up as we go into ’23 as well.
Manuel Navas: As you kind of get some of your normal seasonal inflows in deposits in the first half of the year, how much of the borrowings can pay back? Are you targeting to kind of get back to 3, 4Q levels? Like how quickly?
Richard Dutton: Well, I mean, I guess you never know, but over the last 2 or 3 years, I would tell you that our average deposits from the tax program in the first quarter have been right around and $240 million, $250 million, and that’s been pretty steady each in the last 2 or 3 years. So we could pay back starting sometime the week of February 20, when we’ll see that money start to flow in, and we have a bunch more in the beginning. But again, over the whole quarter, if you averaged it, it’s about $240 million is what we anticipate.
Manuel Navas: And would that go off to borrowings?
Richard Dutton: Yes. fungible. I mean we’ll borrow overnight at the end of the year, what $390 million, I think, is what we work. So again, that’s what it’s for.
Manuel Navas: What are the BFG loans and leases yielding currently?
Dennis Shaffer: 9.2% was the –… What we originally Fourth quarter production average…
Richard Dutton: Was 9.2% Manuel.
