Mike Achary: Yes, so in the first quarter we have about $1.8 billion of maturities and they’ll be running off at about $4.77 billion. That goes down by about half in the second quarter. The runoff rate is about the same. And then the second-half of the year, we have about a $1.5 billion coming off. And the other runoff rate is just a bit higher right now. And again, the way we’re thinking about those maturities lined up with the promotional rates that we have in place is that the plan really is to have a lot of the CD maturities that happen in the first quarter come back on or renew in relatively short maturities such that when those mature we’re in the second-half of the year in potentially a lower rate environment. So that, that’s a little bit of color around how that’s kind of choreographed.
Casey Haire: Okay, yes, that’s helpful. Apologies if I missed this. What is the promotional rate versus that $4.70?
Mike Achary: We’re at about $5.25, you know, and that will be a relatively short maturity. Now, we also have promo rates, in the $4.75, $4.25 range that stretch out those maturities just a little bit.
Casey Haire: Okay, so the CD maturities basically don’t start to benefit the NIM until the back half when we get…
Mike Achary: That’s right.
Casey Haire: Yes. Okay, got it.
Mike Achary: That’s correct. Okay. Casey, presume in a June initiation of rights going down. If that happened earlier, obviously the benefits would be quite different.
Casey Haire: Okay. All right, great. And just last one, the bond book — can you give us the spot yield on the bond book at 12/31? I know you gave it at 2.57%, but I was just wondering what the exit rate was so we could have a better pinpoint on it?
Mike Achary: Well, it was 2.57% for the month of December. Is that what you’re asking?
Casey Haire: Yes, I know it’s 2.57%. I saw that in the deck. I was wondering what it was at 12/31?
Mike Achary: Well, we were at 2.47% for the quarter, 2.57% for the month of December. And the way I’ll share that information is for the first quarter, we’re looking at that yield to be just a couple of basis points lower than when it ended the month of December. So call it 2.55% or so.
Casey Haire: Okay, gotcha. Thank you.
Operator: Your next question comes from the line of Brett Rabatin from Hovde Group. Please go ahead. Your line is open.
Brett Rabatin: Hey, good afternoon, everyone. Thanks for the questions. I wanted to ask first on slide 28, you have the deposit account size, and one of the variables I’m not sure if I’m clear on is the expectation for continued atrophy maybe in DDA from here? Are you guys thinking that DDA levels have almost troughed or maybe give us some color given that the size relative to 1Q or I guess the 4Q ‘19 is still about 23% higher today?
Mike Achary: Yes, so obviously one of the positives for the fourth quarter was the notion of our NIB remix kind of leveling off. So in the prior quarter, we were at 38%. We finished the fourth quarter at 37%. And as we think about next year, Brett, we expect there to be continued remixing, but at a much, much slower pace. So potentially we could see ourselves at around 33%, 34% or so by the fourth quarter of next year. So that’s obviously a big help and has been a big help and I think will continue to be helpful to this notion of potential NIM expansion next year.
Brett Rabatin: But Mike, to be clear it sounds like you’re not expecting the average balances to maybe go back to prior levels completely? Is that fair in your assessment?
Mike Achary: Yes, I think so.
John Hairston: Yes, I think I’ll jump in and help. This is John, the consumer balances are a lot closer now to where they were pre-pandemic, Brett. The wholesale balances, because of the volume of operating accounts we are adding and hoping to add on a faster clip this year have higher balances and that skews the total if you would on an average a little bit higher. So there’s more than just the same volume of accounts from 2019, compared to now because the mix has changed some. The business deposit accounts on the smaller end, we expect to hit pre-pandemic in around June or so. That’s the run rate extrapolating. So we’ll see if the expectations around the rate environment changes that any. And then on the larger side, you’re right, those average balances seem to have held.
And it’s somewhat curious, because the balance sheet, the balance sheets more than cover the earnings analysis fees that we have on the treasury side. And you would think that they would have flown back out to cover that, but I think just the absence of investment on the wholesale side the last six months or so has tempered that outflow. If rates begin to go down and the environment gets a little bit more optimistic, then I think we may turn more to those 2019 balances simply, because people are spending the money and investing into things and want to use their money versus ours for the time being. Does that all make sense?
Brett Rabatin: Yes, that’s really helpful. The other question I wanted to ask was just around the expense guidance 3% or 4%. And you’ve obviously made a lot of effort and results in getting more efficient in the past couple years, but you’ve also talked about maybe some technology spending upcoming. Can you talk about you know what you’re looking at in terms of spending with technology relative to that guidance and then does that 3% to 4%, does that kind of exclude any potential pickups of talent of lenders in any markets? Maybe a little more color around that guidance?
