Curt Myers: Yeah. We’re monitoring all of our portfolios on the consumer side and commercial side. So we’re looking diligently at the consumer portfolio on rate resets on adjustable rates and just the overall performance in the commercial mortgage and consumer or residential mortgage and consumer portfolio again, underlying credit metrics don’t see any emerging trends but diligently monitoring that. Specifically on commercial office is what we’re really, really focused on, and the overall trends are still pretty stable when you look at delinquency and underlying credit metrics. But moving into a credit environment, we’re being very diligent on all portfolios.
Chris McGratty: Perfect. Thank you for that. If I could just getting back to the NII guide. Mark, I think in your prepared remarks, you said the rate of change would slow, which is fairly consistent with most banks given the catch-up on the liabilities. But it would imply the margin begins to roll over, call it, second quarter into the end of the year, if I take the balance sheet comments at face value. I guess, number one, is that a fair assessment? And then maybe, two, could you just talk about opportunities to perhaps offset that through security shrinkage, moderating loan growth, that would be great. Thanks.
Mark McCollom: Yes. So answer is, correct, Chris. I’m saying for the last six months when people ask that question, when do you think your margin is going to peak out in the cycle? And my answer is, one month to one quarter after the Fed stock raising interest rates, right? So depending on what your bias is on that, I think that’s going to drive when we max-out on our margin. In terms of opportunities going forward, we are — we have — to date kept a lot of dry powder from a liquidity perspective on certain wholesale channels, which could potentially be lower than some of our current overnight borrowings costs. So we’ve looked — there are some dips in the intermediate part of the curve right now, where I think there are some opportunities to go out a little bit in duration.
And depending if you believe in the forward curve, I think there’s some opportunities to extend out liabilities a little bit as well. And then lastly, I mean, we just had a year with 11% year-over-year loan growth, I would expect that to moderate in 2023.
Chris McGratty: Okay. Great. And just the monthly cash flows or the quarterly cash flows off the bond book, if you have it, and that’s 30% beta that was total, just to make sure that’s not interesting, that’s total beta, right?
Mark McCollom: Correct. Yeah. That’s our estimate for total deposit beta. And roughly for us, our interest bearing deposit beta would be about 50% higher than that. So just because we have roughly about one-third of our deposits are non-interest bearing. And I’m sorry, what was the second half of your question.
Chris McGratty: Just, what’s coming off the bond portfolio?
Mark McCollom: Yeah. On this bond portfolio, it’s obviously slowed, but it’s around $20 million a month.
Chris McGratty: Okay. Great. Thank you.
Operator: Thank you. Our next question will come from Feddie Strickland of Janney Montgomery Scott, Research Division. Your line is open.
Feddie Strickland: Hey. Good morning.
Mark McCollom: Hey, Feddie. Good morning.
Feddie Strickland: Saw that HLB advances rose by about $1 billion linked quarter. Assuming that has occurred near the end of the quarter, just given where average balances were. Mark, I know you said before that we should expect some level of FHLB just given that’s kind of where you guys were before we had all this liquidity. But is that kind of at the level you want to be at or do you have a target level? Or is it just going to kind of follow different loan opportunities, you’ll just augment the funding base with that? I was just curious what your strategy was with the FHLB funding?
