Manuel Navas: I appreciate that color. Is there — I know that you don’t like to give kind of near-term NIM expectations, but anything you can give on like directionality and kind of success of your current offers in the marketplace to help stabilize funding?
Avi Reddy: Yes, sure. So in terms of consumer deposits, we’ve — we have some offers out there at the start of this year, and we’ve already raised $75 million of deposits on that. So you think falling back to the loan to deposit ratio question, I mean, that’s a market that we can access. We have seen a lot of banks do it. It’s going to be a mix between CDs and competitive savings of products. I think the one disclosure we always like pointing the analysts to is, if you look at our prior 10-Ks and 10-Qs, Manuel, on the economic value of equity, and you go back to the start of the year, look at our 10-K, our EVE was around $1.2 billion at that point in time. And you look at what we had in our September disclosures, it was around $1.7 billion to $1.8 billion.
And so what that’s really telling you is that, the present value of the cash flows of the assets and liabilities, once they go through that full cycle, which is over a DCF model over three to five years, our own models are saying the bank is worth $400 million to $500 million more, right? That doesn’t show up in a quarterly NIM number because your NIM can go up and down in any particular quarter. So I think looking at those EVE numbers, provide you some directional analysis of the franchise value in the company. And obviously, in our next 10-K, you’ll see the next EVE number come out.
Manuel Navas: What do you assume are the ranges for your noninterest bearing deposit balance in that calculation? Because that could shift that pretty widely, correct?
Avi Reddy: Yes. No, absolutely, but it’s a projection over the course of five years, right? So we see attrition then when we modeled that based on recent history of what we’re seeing. But like Kevin said, our noninterest bearing — our average noninterest bearing deposits for the fourth quarter was 36%. I mean, we have escrow deposits that we pay out at the end of the year. So the spot balance is always kind of misleading. But we were 37% when we went into the cycle and we’re 36% right now. So we’ve done a really nice job keeping it there. And I think like Kevin said, all our goals are really focused on deposits and growing deposits this year. So some level of that, we obviously model a certain level of betas in there. And as I said, we always do our IRR modeling with around 30% betas, and that’s kind of what’s in there.
But I think in the near term, yes, sure, you could see people move out of DDA into interest bearing deposits. But then over time, once the Fed starts cutting rates again, you could see a migration back into DDA there as well.
Matthew Breese: Okay. That color is really helpful. Thank you.
Operator: The next question is from Chris O’Connell from KBW. Chris, please go ahead. Your line is open.
Chris O’Connell: Hey, good morning. I appreciate the expense guide. I was hoping to just get a little bit of color given the first quarter seasonality, especially in the comp line with some of the things you mentioned as to maybe where the starting point is for the year and then how the cadence kind of progresses from there?
