We were very successful a few years back when we started the mandatory initiative of, if we’re going to lend you money, we need to have a deposit relationship. That’s going to be the culture going forward. So our passion here is to be less funded wholesale, be funded more traditional in nature and we’re doing — and we’re doing — and we’re looking at all avenues to bring in a mix of funding that, light is better, so we can have a much better cost of fund and better stability on our funding mix. If you think about the magnitude of our wholesale book of liabilities, if you replace that with, we’ll call it, true core deposits, it’s a game changer for multiple. So the goal here is to be less dependent on mortgage, less dependent on wholesale and focus on multiple expansion over time.
And that’s our passion. That’s our business model every day. It’s within our DNA. It’s not going to happen overnight. And I said that when I took over as CEO, this is culturally where we’re going, and we’re making that long-term vision of trying to change the dynamic of the traditional thrift model towards a commercial banking model.
Mark Fitzgibbon: Thank you.
Operator: Thank you. Our next question has come from the line of Dave Rochester with Compass Point. Please proceed with your question.
Thomas Cangemi: Good morning.
Dave Rochester: Hey, good morning, guys and congrats on the deal.
Thomas Cangemi: Been a long time, David, but we’re very pleased to be here.
Dave Rochester: Yes. Yes, absolutely. Glad to see it. Just on the potable advances you guys have, is it fair to say that the margin result this quarter and the guide for next quarter includes the repricing of all the like $1 billion or so of those advances that you had at this point? So you’re not really expecting a cliff repricing of that in 2Q or beyond?
John Pinto: Yes. If you look at — I mean, we do have a lot of borrowings coming due in 2023. So when you look at that amount, we have probably just under $7 billion coming due in 2020 in the first quarter of 2023. And that —
Thomas Cangemi: In the guide. Yes.
John Pinto: Yes. And that’s in the guide — that’s in the guidance. The cost of that is in the $330 million range, $340 million range. So there’ll be a bit of a lift there, but nothing significant. There are potable on the books, as you mentioned, but they’re spread out on what their lockout dates are. So we don’t expect to have that, the cliff issue that we had in the third and the fourth quarter of 2022.
Dave Rochester: Yes.
Thomas Cangemi: Dave, I would just say, to John’s point, we want to have some flexibility to go into 2023, depending on our balance sheet renewability, depending where rates start to normalize here and we have an opportunity to really look at the assets that we’ve acquired and see what assets we’re going to hold. There has been no restructuring as of year-end. We priced — we looked at the marketplace. We believe when the marketplace becomes more opportunistic for us to think about, maybe reshipping our proceeds into maybe a debt reduction or a debt restructure, that’s always on the table, we’ll look at what makes sense in the marketplace. But clearly, having the optionality is going to be important, especially, with most likely a pause coming.
