Mark McCollom: Yeah, I think it’s really more the latter, Feddie, than the former. You saw FHLB grow more than, say, Fed funds would because there was opportunities to just maybe do some one-month, two-month, three-year kind of laddering and very short-term FHLB advances and pick up some funding advantage over overnight, but that’s — we’re going to be opportunistic on all of those wholesale funding sources. And — but I would anticipate in the near term, certainly for that number to be higher than what it was certainly as an average for 2022.
Feddie Strickland: Got it. Along those same lines, I was just curious, how do you view FHLB advances versus broker deposits just in terms of how you look at what types of wholesale funding to use?
Mark McCollom: Yeah. I mean, generally, we’re looking at both rate, but also then depending on what we have in terms of collateral for those advances as well.
Feddie Strickland: Got it. And just one — sorry, go ahead.
Mark McCollom: No, sorry. So I mean I was just going to add that as of right now, our immediate overnight available liquidity is well in excess of $7 billion to $8 billion.
Feddie Strickland: Got it. And then just one last modeling question. Look like Wealth Management held up pretty well. Do you happen to have the market value of AUM handy just for modeling purposes?
Mark McCollom: The market value of are — AUM…
Feddie Strickland: Asset under management.
Mark McCollom: Yeah. It was $13.5 billion at year-end.
Feddie Strickland: Got it. Perfect. Thanks for taking my questions.
Mark McCollom: You bet.
Curt Myers: Thanks, Feddie.
Operator: Thank you. Our next question will come from David Bishop of the Hovde Group. Your line is open.
David Bishop: Yeah. Good morning, gentlemen.
Curt Myers: Good morning, David.
Mark McCollom: Good morning, David.
David Bishop: Most of my questions have been asked. But curious, Mark, in terms of the operating expense guide, it looks like at the high end, that’s basically annualizing the fourth quarter run rate, maybe what are the opportunities to hit the lower end or maybe where you can more easily more achievable carve-out expenses to hit the lower end of guidance?
Mark McCollom: Yeah. So if you take the — if you take our $168.5 million in the fourth quarter, subtract down $1.9 million for one-time merger charges on Prudential, take out $3 million for incentive compensation and other accruals. Take out $800,000 for the branch closures that are planned in 2023 and then 1.9 million between legal and reserves that we set aside for a contingent liability during the fourth quarter. You take those numbers out, you get just below $161 million, which then that times 4 kind of does get you to that low end of the guide. Now I would say that you’ve got offsets to that, you’ve got wage pressure, and you’ve got annual increases and things like that, which is why we have a range. And then additional things to then get you back down to the lower end of that guide are going to be — we’ve been investing a lot in technology over the past five years and to start to see some of that technology pay-off to allow us to leverage and grow without them having to add the expense basis on a maybe we’ve added in the past.
And then lastly, I would also comment that while this is maybe more of a 2024 event, we, like everybody else are taking a hard look at corporate real estate. And we think there’s going to be some opportunities there over a multiyear period of time to reduce our spend there as well.
