Thomas Wendler: Can you guys maybe dig a little deeper into the broker dealer fee guidance you provided, the 0% to 5% growth in 2023, just looking for any color on the moving parts by business line there?
William Furr: Yes, so as we look out into 2023, obviously that the investment banking business, the trading businesses can be difficult to assess. And so, as we look forward, we expect to see improvement in our public finance services business. We had a challenging underwriting year in 2022. We think that improves modestly. From a fixed income services perspective, it’s difficult necessarily to predict exactly how the year goes. We obviously saw some volatile results quarter-to-quarter, in 2022. But we do — we don’t see the environment necessarily materially changing in the first quarter from what we saw. But it is starting to heal slowly. So, we’ve got it improving modestly through the year. And then we expect our sweet peas that we’ve talked about to continue to carry forward and — carry forward into 2023. So, a modest improvement, but not a market shift in what I would call the overall environment for HilltopSecurities.
Thomas Wendler: All right, thanks for the color there, guys. That was my only question. Thank you.
Operator: Our next question is from Woody Lay from KBW. Woody, please your line is now open. Go ahead.
Woody Lay: Hey, good morning, guys.
Jeremy Ford: Good morning.
William Furr: Good morning.
Woody Lay: Yes, I wanted to touch on credit. I mean all the credit metrics were pretty stable quarter-over-quarter, which was good to see. Are there any loan segments in particular you are taking a closer look at at this time? Or, just how are you thinking about credit over the next six months?
William Furr: We are our entire loan lookout obviously as interest rates have shot higher. Different reset period for different clients. So, it’s affecting different clients at different rates here. But we are evaluating the book really across. Certainly for anybody who has got a floating rates or variable rate loan, portions of the book we continue to look at, I think this has been consistent. The office book which is just under $860 million, we continue to monitor closely given work-from-home trends and the like. The hotel portfolio, which is much smaller than it used to be, but we continue to monitor that portfolio certainly for business travel. But outside of that, I think it’s really wholesome look across the portfolio.
Again because the biggest — what we are seeing as the biggest challenge is higher interest rates and the speed with which those interest rates did move higher, our customers not necessarily being to push that through to that customers or pass that through. And so, it is impairing — it’s a very cash flow on the margin. So, we were watching that across the book.
Woody Lay: Okay, that’s good color. And then, I wanted to touch on the deposit guidance. Your way out — you are expecting average deposits down 4% to 8% for the year. Under this scenario, do you think the overall size of the balance sheet shrinks, or would you look for a fill the hole with short-term borrowings in this scenario?
William Furr: Our outlook kind of expects the balance sheet is similar in size year-on-year. So, it doesn’t get materially smaller but it does likely shrink modestly. But again, we are looking to see — we have got excess cash levels. Those cash levels will likely run down. And, we will see that reinvest in loans in the loan portfolio.
Woody Lay: All right. That’s all from me. Thanks, guys.
Jeremy Ford: Thank you.
Operator: Ladies and gentlemen, we currently have no further questions. And this concludes today’s call. Thank you for joining. You may now disconnect your lines. Have a great day.
