Joseph Sutaris: Yes. Well, Matt, this is Joe. So the the expectations for the full year on the securities is about $600 million. We just have to have a significant amount of that about $350 million or so coming off kind of in the middle of the second, second quarter, $400 million in the first half of the year. But the totals about $600 million in the full year. I think over time, we certainly would like to see our transition from a securities largely, securities, concentrated, average earning assets base to one of loans. I think we now have the organic growth components that we need, we tooled up and so over time, we’d like to see that roughly $5 million portfolio to move down to on a relative basis to move down. We’d like to see a loan-to-deposit ratio that trends up.
Right now, I think about 67%, ideally, we’d be down more balanced at 75% to 80% loan-to-deposit ratio. So I think that will just trend over time and you’ll see kind of on a relative basis the securities book drop.
Matthew Breese: Okay. Understood. And how much of the securities portfolio is unencumbered or tied to municipal deposits where you have to keep some portion in securities?
Joseph Sutaris: Yes. Just bear with me one second, Matt I have those numbers here.
Matthew Breese: Would you like me to go on while you look for that?
Joseph Sutaris: Yes. Go ahead, Matt. I actually have those available to take them out.
Matthew Breese: Perfect. So just would love a sense for indirect auto. Obviously, there’s a lot of just inbound questions and scuttle around, you know, deteriorating consumer health. Could you just remind us of FICOs there and whether or not you’re seeing any sort of deterioration underneath the hood part and the pond?
Dimitar Karaivanov: Sure. Matt this is Dimitar. So our portfolio on the car businesses average FICO of 750, roughly. And that’s where the originations continue to be — we’re writing business now, kind of in the 7% range, on a gross basis. So that’s kind of six net. So it’s still pretty good business. We have seen in terms of credit, normalization, I would call it still I would call it normalization towards the lower end of the historical averages. So we’ve been averaging losses, they’re kind of between 25 and 35 basis points, historically, we’re kind of right. But about the lower end of that. Again the FICOs are very strong. Debt to income of the portfolio and originations is 27%. So, we feel pretty good about the credit profile.
I think as we’ve disclosed previously 80% is used cars, our loan to value are less than the average for the industry. We write based on actual dealer invoice not based on the inflated sometimes markups that we’ve seen over the past couple of years. So we feel pretty good about that. We’re going to normalize a little bit more towards the midpoint of the 25 to 30 basis points, 35 basis points and losses probably is still great business and the rates we’re writing it, yes, it is. So that’s kind of how we look at it right now.
Matthew Breese: Okay, understood. Thank you. Next one was just in regards to fee income Joe. I’m sorry, Mark. I think you had mentioned that there’s some new business opportunities within financial services. So I was curious, wholesale just kind of thoughts on fee income in 2023 more specific commentary on employee benefits, wealth insurance. And then for those opportunities, just curious what you meant in terms of — is there a more robust pipeline in terms of deals or organic opportunities that you could talk about?
