Brody Preston: Got it. And then maybe if I could just switch to the deposit base real quick. You mentioned the forward curve a couple of times on the call today, Tom. So I wanted to ask, near-term kind of where do you see your cost of interest-bearing deposits or your deposit beta going as the Fed kind of continues to hike early in the year and then pauses? And then secondarily, just given the back end of the forward curve is starting to head down, how are you thinking about structuring your deposits from a maturity perspective?
Thomas Cangemi: I’ll defer that question to John Pinto, our CFO, John?
John Pinto: So yes, if we look at deposit betas, the balance sheet is really broken out into two different types, right? If you’re looking at our €“ our deposits tied to either mortgage as a service, banking as a service and some of the brokered business, that’s high beta. It’s remained high beta since the beginning of the €“ of the rate hike cycle. And then if you look at the more retail, the more stable piece from both legacy NYCB and legacy Flagstar, they have been much, much lower betas, of course, than that. They started to tick up. I think like just about everyone have seen, other banks have seen over the last couple of quarters. So we’ll monitor that as well. But when you look at where the curve is, it gets I think what Tom was talking about a little bit earlier, we do have a lot of flexibility in the borrowing base as well.
So we’ll be able to look at both where our deposits are funded and how they’re funded, as well as borrowings to ensure we’re ready for either of those positionings, right, either liability sensitive, slightly liability sensitive. Or if we needed to move, we could move that to asset sensitivity without too much difficulty with some shrinkage on the asset side. So I think we have the opportunity to do both there. And I think our deposit base, like I mentioned, is kind of split between what’s in normal retail and what we have in the banking as a service business.
Thomas Cangemi: This is Tom, just to follow up on that. I made a very clear commentary probably about 1.5 years ago, that if you go from zero to a much higher rate environment, now we’ll just reiterate the zero to, let’s say, 5% I don’t think you’re hiding from people getting paid on excess liquidity. So that’s the marketplace. So this is a phenomena in the financial services business right now. That money is very expensive right now and people want to get paid. The reality is that this company we have now is not going to be 20%, 30% liability sensitive, we’re going to be closer to neutral. I think that’s the game changer for us as we look at this combined business of Flagstar and NYCB, that we’re going to position ourselves to not be vulnerable to rates going up.
We want to take advantage of rates up and down as a business model. And that’s the unique to some of the verticals, the type of assets we’re going to have at a floating rate and having a better funding mix. So I think that’s really the benefit of the merger that we’re super excited about today. And I think, like I said, we put we put the banks together and we’re around 4%, 5% liability sensitive without any repositioning or any assets. And we think that we have a lot of liquidity if we want to tap liquidity at the appropriate time, assuming market conditions warrant that. So I think having optionality is good here. And I think that the new Flagstar is a much bigger balance sheet with a lot of great clients that we can service are calling them the five-star clients that we’re going to go after and bank them and go after the funding opportunity.
But our DNA is going to focus on getting great deposits to fund this institution very differently than the traditional thrift model.
