So we have options. And we’ll be very careful about how we execute those options, but we do have the capacity to do it. Others do not. That’s why you’re getting mixed responses.Timur Braziler Great. Thank you, appreciate all the color. Vince Calabrese The other thing I would add to, is on the asset sensitivity, just to add to what Scott was saying. If you look at the numbers, it’s very close to neutral with numbers, plus or minus, are not significant, like they may have been 9 or 12 months ago. So we do get that slight benefit, whether it’s a plus or minus, but you’re kind of starting to try and allow kind of neutral position there. Operator The next question comes from Michael Perito with KBW. Please go ahead.Michael Perito Good morning, guys.
Thanks for taking my questions. You guys have hit most of it. I guess just one kind of bigger picture question around loan growth here. I guess what — you guys have talked a lot about the credit side. But I guess what about — in terms of the funding side, I mean is there a scenario that, that could impact your appetite for incremental loan growth here. I mean, obviously, I think in response to recent events, the CD growth kind of across the industry has surged.I would imagine that will continue to a certain extent, maybe not quite as severely as it did over the last 30 days of the quarter. But is there a scenario where the funding, if it sustains at a kind of like the current beta increase and higher cost CDs where that could impact your appetite to book new loan growth?Vince Delie Well, I think our guidance is pretty conservative for us given the markets that we’re in.
So — and if you look at our deposit base and our liquidity position, the mix of our deposits, we have a lot of avenues to drive liquidity that still creates a scenario where it’s accretive to book loans. So I don’t think we’re going to be impacted like others might be. I’m not suggesting — I think you’re spot on across the industry, but that’s what differentiates us again. Our conservative nature, the fact that the company has been positioned with the deposit base that it has and our conservative credit underwriting standards gives us the ability to continue to land through the cycle very selectively. So while demand may fall off, there’ll be fewer players out there looking to originate. I think the last cycle we went through, we saw it, so we may have an opportunity to increase share in the markets that we’ve expanded into relative to a number of competitors.I don’t see us in a position where we have to pull back.
And I’ve told our employees that they should be very happy that they work here, particularly if you’re in the lending business. So while it’s a difficult, in good times because we tend to be a little more conservative, our ability to sustain our lending activity through the cycle is real, and Gary’s philosophy about credit is real.So we stay within a narrow band and we don’t try to outgrow ourselves during frothy times and take on undue risk. And during times like this, we’re in the market supporting our clients and growing there. I think that’s utopia for commercial banker. I wouldn’t say that’s the case for everyone as you look across the broad spectrum of banks, everyone did a different position, but that kind of is in a very sound position relative to achieving our guidance.Michael Perito That’s helpful.
Thanks. And then not to put the cart in front of the horse here, but just as you guys think about that relative strength, right, and we get through these next couple of quarters and maybe hopefully finally get a better idea whether we’re going into a recession or maybe stabilize what have you?I mean how does that translate to — I mean, I think one of the reasons that you guys are in this position is just because of the diversity of the franchise line of business, you go geography, M&A obviously historically has been a big part of achieving that diversity, and there’s dislocation, you guys are kind of strongly positioned here. I mean, what type of opportunities longer term do you think could step for FNB from all this dislocation? Vince Delie Well, I certainly think the industry is going to change.
I think the landscape is going to change because of what’s going on. There will be pressure on others as we move through this cycle, we’re going to stay pretty focused on managing risk, making sure we have ample liquidity, pricing our funding appropriately right, not worrying too much about growth, worry more about margin as we move through this portion of the economic cycle.But I do think that there will be opportunities on the other end of it. I don’t know what they are. I will tell you, though, that we’ve also done a terrific job our team done a great job of building businesses from the ground up. So if you look at our non-interest income, which performed pretty well this year and reflecting on the prepared comments, Vince mentioned the wealth management business, and we’ve had good success in insurance.We have a very granular diversified group of businesses that generate fee income for the company.
And that’s largely been grown organically, so we’ll continue to focus on building out our capabilities within those groups to drive fee income, which is an annuity benefit to the earnings, and then we’re going to stay focused on our digital strategy.I think the award that we received for the eStore was fairly substantial. There were large — the largest banks in the world applied to be recognized, and we were selected. So our strategy is different. We are very focused on continuing to add features to that and continuing to penetrate the customer base that we have and the prospects that we have in the seven states that we operate in, which are pretty good states to be in. So I think that’s the focus as we move forward. I’ve already going over our M&A strategy, we’ve talked about it before.
But I think for now, we’re just pausing and we’re going to wait to see what shakes out. I think we will come through this in a position of strength. So we’ll have plenty of opportunities.Michael Perito Right. No, that makes sense. I appreciate you guys providing all the color today. Thank you.Operator The next question comes from Russell Gunther with Stephens. Please go ahead. Russell Gunther Good morning, guys. I just wanted to — just a quick follow-up. You just mentioned the liquidity steps taken in the quarter and excess cash. Just remind us of your target level of whether it’s cash to assets? And has that bogey changed at all intra-quarter even just for the near term?Vince Calabrese No, I mean, we’ve been managing that cash position fluidly over the last 1.5 years or so.
I would say that we took down quite another $1 billion or so of liquidity where we brought in liquidity, just given the uncertainty in the environment and just given our conservative nature. So that was $1 billion we wouldn’t have otherwise taken, right? So we thought that was the smart thing to do and serve everything to do in this environment.And when we look at what we put on, so our total wholesale funding today about $3 billion, about one-third of it is two years, one-third is 1one year and the other one-third is inside of six months. So kind of we’re ladder together, and we use that kind of over time to kind of fund what we organically great as far as the lending side. So I mean that really that $1 billion is a reference point that we could use.Russell Gunther That’s helpful.
Thank you. And then just a follow-up to the NII guide. You mentioned a slight step down due to higher deposit beta assumptions. Have you guys quantified what you think the deposit beta through the cycle will be? Has that increased? Do you kind of put a target on that?Vince Calabrese Yes. No, we have our quarterly target in the slide. I would say that so far, just to remind everybody, right, as we have on the slide, our cumulative beta for total deposits was 21.8% at the end of the quarter. We had guided to $22 million, so pretty close to that. And it was, remember, it was 16.3% at the end of the year. So as we look ahead, we’re projecting kind of mid-20s total deposit basis at the end of the second quarter. And while the end of the year feels very far away, I mean, our current thoughts, and I’ll call them thoughts for year one will be kind of low 30s for total deposits as far as the cumulative beta through the end of this year.Russell Gunther That’s great.
Okay, Vince. I appreciate that. Last one for me. Gary, you guys have been conservative and derisk the portfolio in a couple of ways over the past two to three years. Do you see any opportunity or appetite for further derisking as you look out into the environment ahead?Gary Guerrieri As we look at the portfolio today, Russell, naturally, there are softer economic times ahead. We’re not looking at any significant derisking at all at the moment because we’re pleased with the position of the portfolio. And naturally, we’re extremely cautious on the office sector as we have been for quite some time now, and we continue to review that book on a loan-by-loan basis. So we’ll in the normal course of business, potentially move an asset or 2 or a small segment of them.
