Kevin Riley: Yes, Chris, what we’re trying to do is as we said in the past, many calls is that we were rotating our balance sheet to be less asset sensitive and to prepare for the downturn. And I think we struck some good derivatives or interest rate swap that Marcy mentioned earlier, to hedge that portfolio at a variable rate loans on the way down in a higher rate environment. As you can see, the yield curve has dropped off dramatically. So we’re trying to protect the balance sheet on the way down.
Operator: And we have another follow-up from Andrew Terrell of Stephen.
Andrew Terrell: Just a quick question. Thinking about the mid-single-digit loan growth guidance. I guess, can you help me out with some color on just what’s the incremental margin on a dollar of loan growth is for you today. Just understanding that the funding cost could be a little bit higher. But just what is the incremental spread that you’re already seeing the big growth would look like relative to the 360 or so margin in the fourth quarter?
Marcy Mutch: Andrew, it’s kind of a mixed bag. So new loan growth, again, is going on in the high-fives. What’s going to dampen the overall yield is the construction book that’s funding closer to kind of our core loan yield today, which is high-fours. So it’s kind of be that mix of funding that kind of impacts of inflow.
Andrew Terrell: Do you have the dollar amount of that construction book that is funding in that kind of territory. I’m just trying to quantify that impact.
Marcy Mutch: We don’t. That’s not something.
Kevin Riley: Number disclosing.
Andrew Terrell: And then the last one for me, just more housekeeping just the tax rate, what’s driving the step-up in tax rate?
Marcy Mutch: It has to do with some accounting around LIHTC. So it’s coming up a little bit.
Operator: And our next question goes to Tim Coffey of Janney Montgomery Scott LLC.
Tim Coffey: I apologize if I missed it, but Marcy, but what is the cash flow coming out from securities portfolio?
Marcy Mutch: $70 million to $80 million a month.
Tim Coffey: And Kevin, as we look out across this year, what is your expectation for absolute growth in the balance sheet in terms of total assets?
Kevin Riley: Well, it all depends really on deposit growth. So what we estimated and what I think Marcy alluded to is that earning assets should be flat for the year. And what we’re kind of modeling is that the investment portfolio will run down and loans will go up. So earning assets on the balance sheet will kind of remain flat, but we’ll get better yields on our earning assets in total.
Operator: And our next question to you, Adam Butler of Piper Sandler.
Adam Butler: Just going into the interest-bearing deposit data. Do you guys have any guidance for 2023 where that is headed?
John Stewart: It’s John. I think as Marcy said in her prepared remarks, at this point, the beta assumptions versus the prior cycle, we wouldn’t be changing those assumptions. But we haven’t specifically disclosed in the NII guidance that you gave, what those interest-bearing deposit cost assumptions would be.
Operator: We have no further questions. I’ll now hand back to Kevin Riley for any closing remarks.
Kevin Riley: I want to thank everybody for their questions. And as always, we welcome calls from our investors and analysts. Please reach out to us if you have any follow-up questions. Thank you for tuning in today, and goodbye.
Operator: Thank you. This now concludes today’s call. Thank you so much for joining. You may now disconnect your lines.
