Brian Martin: Yeah. No, that make sense. And just to remind me, I guess, on the deposits, there’s been a lot of talk about the beta. What did you guys exit the quarter on the cost of deposits? I guess I know you talked about the betas where they tried to, but for like the month of December, where were the — I think you said loan yields were I thought they were 6% for the quarter on the origination yields, but the cost of deposits as far as exiting in December, where were you guys there?
Vince Calabrese: Yeah. Total deposit costs ended December at 79 basis points and interest-bearing deposits ended a year at about 1.14%.
Brian Martin: Got you. Okay. Perfect. And last one for me was just on the deposits. You guys talked about the guide being relatively flat, just the mix. I mean, I know you talked about the work it takes to keep the deposits where they are. Just where you are now on the DDA as you kind of look throughout the year? I mean, do you expect that number to come down a bit? Is that kind of in your forecast or I guess do you think the efforts you guys have — you can kind of maintain this level you’ve reset to?
Vince Calabrese: We’re going to work hard to maintain and grow that in source of funding for us, honestly. I mean there’s been some mix shift into CDs as you would expect, more particularly in the municipal and commercial side. I mean there’s been some shifting into CD. The key is that it’s still kind of staying in the house. So it’s moving around a little bit. And the non-interest bearing deposits, like I said earlier, it’s a big focus in the company with existing clients, but also bringing in new clients.
Vince Delie: But you — really, we have to see how things play out throughout the year. I mean, there’s going to be pressure on non-interest bearing deposits with in the existing book as we move into a period of extended high rates, Brian. So we’re going to have to work really but I think we’ve outperformed at least what we’ve seen reported recently, and we’re going to keep doing what we’re doing to maintain those balances to the best of our ability because that really drives our profitability through the mix. You are right.
Brian Martin: And you’re at a much higher base now with all the efforts you guys have had here over the last year or two is the money you’ve taken in.
Vince Delie: There’s considerable granularity in that interest-bearing deposit base. So we — there’s some hope there, Brian.
Michael Perito: I got you. Okay. Thanks, guys. Nice quarter.
Vince Delie: Thank you very much. Appreciate it.
Operator: Our next question comes from Emmanuel Navis (ph) from D.A. Davidson. Please go ahead with your question.
Unidentified Participant: Hey. Good morning. Most of my questions have been answered, but could you just give me a reset on the Physicians First Portfolio? You said it’s about just over $1 billion, kind of like the year-over-year growth? What are like new loans coming in on? Any kind of extra color there would be great.
Vince Delie: I’ll start out with the program itself, so you understand. We have a dedicated team that originates mortgage loans in the space. They’ve done a terrific job. We’ve built out on our eStore platform a digitized product offering the bundles, a set of products for physicians. So that’s been offered electronically on the eStore and we use that the eStore to promote the product digitally and we’ve done very, very well. I mean I can tell you the CAGR on this portfolio is, it’s fairly significant, 65% since we started 2018. So it’s grown nicely. We started with the originators first and then we supplemented their effort with the digital offering and set up the campaign. If you just look at households with physicians, we’re up 66% in Eastern North Carolina and the Mid-Atlantic region alone.
So we’ve had some good success in those market. The full year production was over $0.5 billion. It’s been — the portfolio stands at $1.2 billion at year-end. So the program has worked very well for us, and those are high-value households in that we feel confident that with our digital capabilities and our analytics will be able to continue to penetrate that household with additional products and services. So it’s a good program for us. The credit quality is stellar in that portfolio.
Gary Guerrieri: We’re also rolling out as we speak, the small business side of that equation for the physician practices. So that’s something that we’re working to as we speak, and we’ll start to see some activity there as we get into 2023, this guidance base growth low.
Unidentified Participant: Perfect. I appreciate that. So you’re building on it. Thank you.
Operator: And ladies and gentlemen, with that, we’ll end today’s question-and-answer session. I’d like to turn the floor back over to Vince Delie for any closing remarks.
Vince Delie: Well, I’d like to just thank everybody for your interest and the good questions we had today. It was a tremendous year. We really hit on all cylinders. I think the company is in a really good position moving into this year, and that doesn’t come without a tremendous effort from our employees. So I’d like to thank all of our employees and executive leadership team and the Board of Directors for their support and confidence. I think over the last four or five years, we’ve proven that we can execute on a number of levels, and this company keeps exceeding my expectations in terms of what we deliver and what our employees deliver in the field. So I want to thank them and thank our shareholders for sticking with us and supporting us and we’re really looking forward to the coming. So no matter what the challenges are, we’re going to get there and we’re going to win together. So thank you very much.
Operator: And ladies and gentlemen, with that, we’ll conclude today’s conference call. We do thank you for attending. You may now disconnect your lines.
