Tim Laney: We are, frankly, surprised at how strong demand has continued to be. I think where we’ll temper that is with what I was talking about earlier, in terms of being more selective if a new relationship is prospectively coming in to the bank and they don’t have enough to offer on the treasury or depository management front, they may not be a right fit for us. I’m not worried about demand. We’re fortunate we’re in incredibly strong markets that continue to perform well. But number one, as we’ve discussed in prior quarterly calls, we have certainly raised our credit underwriting criteria. And number two, the relationship pricing has got to work for us. And our very simple message to clients is it’s got to be a win-win. You want us to be here over the long run. We can’t do that by participating in relationships where we’re not generating adequate returns.
Andrew Liesch: Got it. That’s really helpful color. Thanks so much. I’ll step back.
Tim Laney: Thank you.
Operator: We’ll take our next question from Brett Rabatin with Hovde Group.
Brett Rabatin: Hi, guys. Good morning.
Tim Laney: Jen really butchered your firm’s name, sorry about that.
Brett Rabatin: Yes, that’s okay. It’s Hovde Group. I wanted to go back to the deposit question and just on the margin, what do you — so I want to make sure I’m clear. What are you guys assuming for the beta as we get into later this year? And then obviously the 5% beta presently, that’s pretty low. There’s a little bug in the back of my head that says you can be a little bit worried about losing maybe some deposits as people €œwake up€ to the rate environment. Any color on those two topics?
Tim Laney: Yes. And before Aldis jumps in with specifics, I’ll say where we’re going to focus is on that, call it, 20% that we’ve addressed that are really not operating accounts. If you think of it, your core operating account, whether you’re an individual or a business, those accounts tend to be much less sensitive, right? That’s where you’re transacting your business. That’s where in the case — if it’s a personal account where your paychecks being deposited to, that’s not really the intra sensitive dollars that we’re talking about. We’re talking about that 20%, of which 10% have been in CDs historically up to 20%. We do, as Aldis mentioned, we could see flexing that CD book up meaningfully in order to provide a competitive return on time and money.
Brett Rabatin: Okay.
Tim Laney: I’ll turn it to Aldis. He was hoping I would skip him. I’ll turn it to Aldis to try to answer your question. Get out your crystal ball and try to answer the question on the beta.
Aldis Birkans: I was hoping not to because I don’t have a crystal ball. And having been reading the beta calculations, it can be certainly on total deposits, interest-bearing deposits, interest-bearing liabilities, and all of that. So I like to stay away from projecting beta here really and just stand by the guidance that we gave in the margin. I think we look at that as a whole. And embedded there are certain obviously assumptions on assets pricing as well as deposits. But getting to that 4% over a period of time I think is where our goal is, or how to play out.
Tim Laney: And we expect — and I will say this at a macro level, we certainly expect, given our history, we expect our beta to perform better than the national averages that we’ve been saying. There’s nothing we’re seeing that would suggest that that trend would change.
Brett Rabatin: Okay. And then I know it’s not a huge concern in terms of the fee income with the whole $10 billion question, there’s several things you can unwrap there with the regulators want you to have more staff for a lot of different things. Maybe there’s an advantage for staying under. And just wanted to get your thoughts, Tim, on how you’re thinking about the $10 billion question.
