Kevin Blair: Look, it will definitely be higher than it was this last year. I can tell you that. Because with all the diminishment that we have had that Jamie talked about earlier. Our story is not one of production, it’s been a story of diminishment and with all these excess balances sitting on the balance sheet, it’s hard to overcome the reduction in the average balances. And I think as we have talked about that abating the production will obviously be much more impactful in terms of growing deposits. And so, what we would love to be able to see coming out of the other side of the diminishment story is a production level that closely mirrors that of loan production. So to Jamie’s point, we believe that we can reduce our wholesale funding in the coming quarters and we feel very good about our loan-to-deposit ratio today, which is 190%.
And going forward, if we match our deposit growth with our loan growth, we feel very good about not only the margin impact of that, but ultimately, our ability to continue to fund our growth story as we look into 2024 and 2025.
Brandon King: Got it. That’s all I had. Thanks for taking my questions.
Kevin Blair: Thank you.
Operator: Our next question comes from the line of Brody Preston with UBS. Brody, please go ahead. Your line is now open.
Brody Preston: Hey. Good morning, everyone.
Kevin Blair: Good morning.
Brody Preston: I wanted just to ask on the — Jamie, could you help me just on the derivative hedge portfolio. The 1.82% rate that’s been pretty consistent for the last several quarters. Is that a net rate? I guess, is that net of the what you are paying on the floating and receiving on the fixed or just — can you help me better understand the moving parts there?
Jamie Gregory: That is the received fixed rate versus — so we will be receiving fixed at 1.82% and then we pay on the index on the other side. So, historically, that…
Brody Preston: Got it.
Jamie Gregory: …more on the floating rate LIBOR on those.
Brody Preston: Got it. Okay. So that’s probably SOFR, I guess, at this point. Okay. Cool. And then just on — I appreciated the slide, I think, it was slide six or so. I think you had tucked in the repricing dynamics on the fixed rate portfolio. I just wanted to focus in on the non-mortgage portion. That 2.3-year duration, is that — is that like — is that a good cadence to use in terms of even repricing from the fixed rate loan perspective or is there any kind of chunky periods of fixed rate loan repricing within there?
Jamie Gregory: There’s no real fix — there is no real chunky portions of that. It’s actually fairly steady.
Brody Preston: Okay. Okay. So that should just be consistent repricing going forward. All right. Cool. And then I just wanted to sneak in one last one, just on the deposit outlook. I think on one of the slides, you said that you expected, I think, it was 46% to 48% total deposit beta range through December 2023? So that kind of calls for a bit of a step-up in the back half. I was just wondering how competition is evolving in the Southeast markets, especially now that FHN is back fully competing for deposits with everyone?
