Bruce Zessar: I know that Glacier reports at the same time as you. But in looking at cost of funds, your cost of funds widened compared to theirs. I mean you guys were at 28 basis points in the third quarter. They were 15. So there was a 13 bps gap. You’re 64 in the fourth quarter, they’re 35. So now it’s a 29 bps gap. And I’m just wondering if you’ve had a chance to look at how they performed on that side, and you could explain maybe what the differences are and why yours gapped out more than theirs?
Kevin Riley: Well, have you seen their deposit performance this quarter?
Bruce Zessar: I haven’t.
Kevin Riley: So the thing is this, the gap out because we’re trying to take care of our customers and retain deposits by paying up and putting people into money market accounts and CDs. And we started that back in the third quarter and taking care of our customers. The fact of the matter is, if you look at our performance, our margin has expanded. Their margin barely expanded over the second and third quarter. This quarter, it went down. I think the only net up in the core and the margin a little over six basis points for me. It’s a whole different ballgame. We’re making a lot more money on the rate increases, and we can afford and still have margin expansion by paying our depositors and trying to retain that business. So it’s just a different model.
Bruce Zessar: But then why isn’t it dropping to the bottom line? They were a lot closer on earnings. All right.
Kevin Riley: To whose earnings. That’s — these are analysts’ expectations.
Bruce Zessar: I’m aware of that, but people are going off of the guidance that you provide on a quarterly basis, and there was clearly a difference in expectations versus what happened. And that’s what’s driving my question. You just said you made a lot of money, and I’m just asking if that’s the case, why didn’t it fall to the bottom line? Why wouldn’t it have been better to sell some securities, let that part of the portfolio run off, let the loan-to-deposit ratio go up instead of taking on expensive borrowings?
Kevin Riley: Well, if you — I’m not going to get how you run a balance sheet because let somebody else talk about that. That’s not an effective approach. So we will take the next question please.
Operator: Yes, our next question go to Jeff Rulis of D.A. Davidson.
Unidentified Analyst: This is Andrew on for Jeff today. Just a couple of quick questions on loan growth. You guys mentioned — you guys noted earlier, higher production in new markets, and you’re seeing opportunities to grow new loans. I was just wondering what — where you guys are seeing the most growth and the most opportunities by state or by region?
Kevin Riley: The interesting thing, quite frankly, is pretty even across our whole footprint. There wasn’t really any one market that outperformed another. So it’s pretty level across our whole footprint.
Unidentified Analyst: And then another one kind of following up on that. Are you guys winning new relationships in those new markets? Or are they just good markets in general?
Kevin Riley: Well, I think we’re winning relationships because we’re growing the assets. So we have net customer account increases. So we are winning customers and it’s, again, pretty much even across our footprint.
Operator: And we have a follow-up question from Chris McGratty of KBW.
Chris McGratty: The comment in the deck about being neutral to rates with the balance sheet today, it would feel like that’s perhaps on the conservative side of the Fed cuts. So the Fed cuts, the pressure on the funding would seemingly ease. I guess, number one, you kind of agree with that? And then two, can you just remind me, Marcy, the beta — the full beta assumption that’s in the ’23 guide?
Marcy Mutch: We haven’t provided the full beta assumption in the ’23 guide, Chris, but your first assumption would be accurate.
