Aldis Birkans: That is correct. That 3.83% is where we’re jumping off into 2024. One thing I will say that we did purposefully ran-off our investment portfolio during the second half of 2023 in order to maintain the less than $10 billion asset size by December 31. I do expect to rebuild that investment portfolio by about $200 million in addition to where we sit today, that clearly is the lower yielding asset that’s coming on. So, that might impact that calculation of percentage calculation for margin, which is why I really geared towards the giving the net interest income as the guidance for this year.
Jeff Rulis: Perfect. Yes. I got you. Thank you.
Operator: We’ll now take our next question from Matt Fedorjaka with KBW.
Matt Fedorjaka: Hi guys, good morning.
Tim Laney: Hi, good morning.
Matt Fedorjaka: I know you’re a little bit limited on what you’ll disclose about Cambr. But was wondering if you could give any color on maybe how you’re using it and if it was able to be used to help fund some of the strong loan growth that we saw this quarter.
Tim Laney: It has certainly been a contributor to liquidity. Cambr is performing within expectations. We’re making additional investment in Cambr, that will give us even more flexibility with Cambr as we march through 2024. And that will translate into not only continuing to be a source of liquidity. But actually enhancing fee income for the Bank as we develop out those capabilities. Aldis, what would you add?
Aldis Birkans: I think you summarized it well. I’ll say that in the fourth quarter, if you look at our deposit growth that was not generated on balance sheet was not generated from Cambr. That was our organic growth – in the market footprints that we’re in, but you summarized it well, Tim.
Matt Fedorjaka: All right. Great. Thanks for that. Wondering if we could touch on maybe non-interest-bearing deposits, I know we’ve seen a lot of other banks here seeing some outflows. Has this slowed down at all towards the end of the year and into January at all? Or are you seeing the pace of decline slowed down at all?
Aldis Birkans: We’ve definitely seen a slowdown in the pace of outflows, if you call that whether it’s stabilizing here or not, it’s almost a daily adventure as you come in and see how the accounts are being utilized from the night before and the AHC wallets in the morning. So whether we call it a bottom here, I don’t know, but we certainly seen a significant slowdown in the flows out.
Matt Fedorjaka: Okay, great. And if I could just sneak one more in here on credit, obviously everything is looking great and you guys had a great year in credit. Just wondering if – I know you’re not assuming a recession, but if we do get some more problems here in 2024, what will you be watching more closely?
Tim Laney: Well, as a reminder, we do stress test our portfolio twice a year with our internal team once a year, with an external team the second. And it helps us because it’s a very granular review and it helps us to proactively identify emerging issues. And so our position has always been to take these issues and deal with them as rapidly as possible, with the fundamental belief that problems in banking don’t tend to age well. So as we stress test into different recession or economic downturns, I can tell you, even in the worst of scenarios and that’s where we’re talking about a scenario worse than the Great Recession, the company still comes out on the other side of that well capitalized. So we feel like we’re well positioned and the teams are vigilant.
I would make the case that a fair amount of the business that’s been underwritten in the current environment will end up being some of the strongest business in the portfolio because it is being underwritten to more conservative standards, been even in the past, it’s being underwritten with an expectation that rates could go even higher. And so I’m particularly pleased with what I’ve seen in terms of coming on new business. And certainly, the age portfolio as you can determine from the credit metrics is performing quite well.
Matt Fedorjaka: Awesome. Well, thank you Aldis for answering all the questions.
Tim Laney: You bet. Thank you, Matt.
Aldis Birkans: Thanks, Matt.
Operator: [Operator Instructions] We’ll take our next caller who is Andrew Terrell with Stephens.
Andrew Terrell: Hi, good morning.
Tim Laney: Good morning.
Andrew Terrell: Maybe just to start Tim on 2UniFi, wanted to get a sense here on whether or not, I guess, one, are there any expectations baked in the fee income guide you provided, the expense guidance you provided, are there any expectations of incremental revenue or expense saves from 2UniFi within that guidance. I mean, I think if I recall correctly that you would be in friends and family testing in 2024. Can you just talk about kind of your expectations in 2024 for 2UniFi kind of what are you working towards or hoping to accomplish throughout this year?
Tim Laney: Andrew your memory serves you well, that’s exactly right. We’re targeted to go into the friends and family testing in the second half of this year. I’m pleased to report that all of the work around 2UniFi is on budget and on time and we grow increasingly encouraged by what we’re seeing in terms of the unique capabilities that are being built. I suspect a number of my 2UniFi teammates are listening in, and so I’ll just make this public statement that it’s our intention to be out sometime in the second half of this year and something that might stimulate a road show where we’ll be going very deep on 2UniFi and I can tell you we’re excited to share more at the right time. Again, the expenses have been embedded. What I’m pleased with there is that we continue to manage overall company expense while not only making investment in 2UniFi, but as I referenced earlier, continuing to invest in Cambr, as well as continuing to invest in particular in security-based technology.
