Christopher Maher: I think it’s an excellent point. That’s exactly what we’re trying to do to learn from the experience we went through in 2020, in particular. So kind of coming through that COVID cycle, we had a strongly asset-sensitive position at the time. That resulted in our margins decreasing going down into the 270s — and what we’ve been doing, and this began in the fourth quarter will continue over the next couple of quarters is doing what we can, and you can only do so much around the edges, but doing what you can to make sure that we have a more neutral interest rate risk position. So we are not trying to kind of game and environment, make money one way or another. What we’re trying to do is ensure to the degree we can relative to stability around the margin.
So we are willing to give up some of our net interest income today to protect that margin for the longer term. And Pat walked you through the securities purchases. We have a very modest hedge position that we began in the fourth quarter as well. And again, it’s not to protect against additional Fed increases. It’s actually to protect against what could be Fed decreases at some point. We have no idea when they may show on.
Christopher Marinac: Great. That’s helpful. And Pat, can you remind us two things, how far out are you going on the hedge position? And then what’s the amount of cash flow that comes off the securities portfolio each quarter?
Pat Barrett: So the hedge position, I guess the effective durations that we are putting on are probably in the 7, 8 year range for the cash balance sheet purchases Chris talked about swap. We only have one. It’s just a 3-year SOFR. So that going to dramatically change things other than have a marginal improvement around sort of the downside interest rate risk exposure that you’ll see in our Qs and Ks, right? So — that’s kind of the general flavor of that. And our securities book is pretty short dated as is. So I think 3.5 years in aggregate. So every little bit helps for stretching that out. With respect to the cash flows that come off the book, it’s around $25 million a month.
Christopher Marinac: Okay, $25 million a month. Great. Okay. That’s very helpful. Perfect. Thank you all. I appreciate the time this morning.
Christopher Maher: Thanks, Chris.
Operator: Thank you. Our next question is from Manuel Navas from D.A. Davidson. Manuel, please go ahead. Your line is open.
Manuel Navas: Hey, good morning.
Christopher Maher: Good morning.
Christopher Maher: A lot of my questions have been answered. But on the construction line that, that might come in and help with growth going forward. Is that — does that not show up in the pipeline? Is that the right way to think about it with the pipeline being a little bit lower in this construction?
Christopher Maher: These are undrawn facilities that have like a 2-year life as they’re kind of drawing down and building and then kind of convert after that. So we can kind of project that there’ll be some draws coming in the first half of the year that are expected in natural. And they would not be in the is that commitments. The loan pipeline has some really nice higher loan yields. What would be the construction lines coming in as well? And they kind of have a similar, like, I think, like 6.5% yield roughly?
