I think there are — there always — almost always are a number of people who have interest, they pursue ownership interest in BHG. And so, then, the question just comes down to what’s the price. And so, if we find the right price in there, I think, we would have expressed preference to lighten our load some, if you don’t find the right price. We continue to love the invest and what it does for our company and how it fuels our ongoing growth. And so, again, it’s — the worst case is a good case. But again, just to be clear, at the right price, we would certainly lighten our exposure to BHG as a function of our earnings stream.
Michael Rose: I appreciate all the color. Thanks for taking my questions.
Terry Turner: Yes.
Operator: Thank you. And the next question is coming from Casey Haire from Jefferies. Casey, your line is live.
Casey Haire: Yes, thanks. Good morning, guys. Question on the fee guide ex BHG. I was just wondering, what are the drivers, because to get to the low end of the guide implies kind of a mid-teens growth from the current run rate on average to hit the low end of that guide in 2023. Just wondering what the drivers are.
Harold Carpenter: Yes. I think mortgage is going to be impactful. They had a big hit in the fourth quarter, because of valuation of the hedge. Their pipeline is down to the lowest level it’s been at in, I don’t know, seven or eight years, Casey. So, the size — the absolute size of the pipeline drives the valuation of that hedge. And so, we think we’re going to get — we’re going to at least have that tailwind going into the, call it, the early part of 2023 into the spring. We’ve also hired a meaningful number of wealth management people. And we’re particularly interested in a few that have been at this for decades. Their client base is broad, well supported, so we anticipate some pretty significant revenue bumps from that. As we’ve also mentioned, we are targeting quite a bit of commercial accounts.
And so, with that, we believe we’ve got both annualized fees and unannualized fees — non-annualized fees that would be coming to us. So that’s kind of where that high single digit number comes from, primarily in those areas.
Casey Haire: Okay, understood. And then, just digging in a little more on BHG. Just wondering what kind of spread you guys are assuming just given the bank buy rate has increased and that spread has kind of come in? Does the guide for ’23 assume that, that spread holds, or is there a little bit of deterioration in that?
Harold Carpenter: Spread that I’m looking at for them for next year is 8.5% to 9%, something like that.
Casey Haire: Okay, very good. And then, just last one for me. I know it’s tricky, but the noninterest-bearing deposits settling down to 28%, any sense as to how much more attrition is possible before you start getting into like core working capital and you hit a floor there?
Harold Carpenter: Yes, that’s a great question. And you need kind of a crystal ball to figure it out. But the best data that we have that we’ve looked at is when we start looking at average account sizes and what they were pre-COVID and what they are now, and so, it could be anywhere from, call it, 5% or so to may be something north of that, but our planning assumption is somewhere around that.
Casey Haire: Great. Thank you.
Operator: Thank you. And the next question is coming from Matt Olney from Stephens Inc. Matt, your line is live.
Matt Olney: Hi, thanks. Good morning. First question for Harold. With Michael Rose’s earlier question, you mentioned a flat rate environment and what this means for the margin. But what if the Fed starts to cut its fed funds rate? What are some incremental levers you guys could pull to help protect the margin in the NII?
