Don Kimble: As far as a cumulative, probably not because you’d only got a 50 basis-point increase going forward as far as rates in 2023, but we can go back and reverse engineer the math, but I think it still lines up.
Ken Usdin: Okay. Just one quick one. Laurel Road origination outlook, can you give us your updated thoughts there? Thanks guys.
Chris Gorman: Sure, Ken. So Laurel Road, obviously, from a straight origination outlook perspective, has been challenged. It’s been challenged really by three things. One is the federal loan student payment holiday, that’s a challenge. I think that’s been extended several times. The next is just the rising interest rates, which are a challenge. And the third challenge that we’ve had there is all the discussion around student loan debt forgiveness, obviously, I think, has some borrowers wanting to stay on the sidelines to preserve optionality. Having said all of that, I was impressed that we were able to originate last year, $1.5 billion of refinance loans. But even a bigger picture, Ken, is we are trying to create a national digital affinity bank.
So first of all, those originations will come back, and they’ll come back when there’s clarity around all the issues I just talked about. And there’s a bunch of raw material being priced right now that you’ll be able to refinance advantageously. But in the meantime, what we’ve done is build this national digital affinity bank that has a full suite of products for doctors, a whole suite of products for nurses. We’re getting a 30% cross-sell on the business that we do. So, there’s no question that originations have been challenged, and they’ll continue to be challenged in the very near term. But what we’re trying to do there is a lot broader. This GradFin business that we bought is really interesting because they’re a leader in public service loan forgiveness and where you’re going to see a lot of discussion going forward is around this income-based repayments.
And we’re kind of uniquely qualified to be in their advising on that. Any time we advise people, obviously, we’ll bring them on as full customers. So, does that answer your question?
Ken Usdin: It does. Thank you, Chris.
Chris Gorman: Sure, Ken.
Operator: Your next question comes from the line of Matt O’Connor from Deutsche Bank. Please go ahead.
Matt O’Connor: Sorry if I missed it, but what part of the yield curve are we most concerned about as we think about your fixed rate assets rolling? And I realize there might be a variety of kind of parts because from the short term from the longer term. But as we think about, I think that $1.1 billion, you said, what part of the yield curves should we watch, which obviously longer rates coming in, but shorter rates staying high?
Don Kimble: Yes. Matt, as far as the $1.1 billion, it’s really a 2- to 3-year into the curve, and that’s where we would be looking to extend those swaps when we’re in a position to do that. And so, it is in that portion of the yield curve. Beyond that, we also have a little over $1 billion a quarter and roll over our bond portfolio. And we tend to look at somewhere around the five-year end of the curve there. We tend to do more CMO structures and shorter pass-through like 15-year type pass-through assets as far as our normal investment strategy there.
Operator: Your next question comes from the line of Peter Winter from D.A. Davidson. Please go ahead.
