Chris Holmes: Well, that’s always a consideration because almost always because you like to keep yourself as lean and flexible as possible. And so, we do think about assets for pledging, how much free collateral we have. And that causes us, for instance €“ I made reference to us not keeping some public funds that required collateral because we knew we could go get the money at the same rate or cheaper from customers and just by increasing customer deposits. And so, we take the approach of, we’d like to have as much free collateral as possible, again, because we like to be in a position to be opportunistic when opportunities present themselves. And then one other thing, I haven’t talked about this in a long time, back when we €“ going back three or four years ago, we used to talk about it all the time, our balance sheet is almost 100% direct customer funding and direct customer loans.
We utilize €“ we have almost no brokered CDs on the books. We have almost no €“ only broker CDs and Internet deposits that we have on the books came through acquisition and are still there. And they’re less than 2 million, I think. So, less than 2 million in time deposits. And so, we just don’t utilize those broker deposits and deposits, we use direct customer assets and direct customer funding, which again, we think is how you build value in your franchise is by building customers. And so, when we think about wholesale, the terms that we’re tapping those channels is, like I said, is just to improve our profitability, not because we have to do it. So…
Feddie Strickland: Got it. That’s really helpful. And then just one last question for me. Just curious, in terms of deposit competition, in your markets are you seeing more from the bigger national competitors? Is it smaller local banks? Is it a mix of both? I was just curious whether one type of bank is a little more aggressive than another?
Chris Holmes: Yes, it is the answer. So, I’d say, it comes in pockets. We’ve seen a couple of products €“ one particular product, I guess, from some of the big banks that has some attraction to it, but that’s it, from, I’d say, from the bigger banks. And they’re still not very reactive as you move money away from them. The regionals €“ and I would say they’re €“ almost versus size of the bank, it’s almost more profile of bank. Those banks that are, I’m going to call them high-performing, rapidly growing banks are really competitive on the deposit side because they’re in the same position that we are. They’re growing their franchise and they’re growing their business, and you can’t do that without deposits. And so, they’re aggressive.
And so, I’d say it depends more on the profile versus the size, but the other thing I would say, and this is €“ just frustrates the heck out of us, is we see some crazy things from some small banks in some of our markets. I mean 3x a week, one of our markets is sending over an ad, I mean literally an ad, for folks running CD campaigns, folks running a 5% money market. And it will be €“ I’ll call it, a less than $1 billion bank that apparently needs funds, but we see €“ we do see quite a bit of that from small banks.
Feddie Strickland: Interesting. Appreciate the color guys and thanks again.
Chris Holmes: Thanks Feddie.
Operator: Thank you. And our next question today comes from Jennifer Demba at Truist Securities. Please go ahead.
Jennifer Demba: Thanks. Good morning everybody.
Chris Holmes: Good morning, Jennifer.
Jennifer Demba: You know, your asset quality has stayed really, really strong. I’m just curious, Chris, what categories in your loan portfolio concern you most as €“ if the economy weakens significantly here?
