And so, when you look at the competitive landscape right now for deposits, liquidity is obviously top of mind in the industry. And so, this is our best estimate at this time in terms of those increases in interest-bearing deposit costs, and thereby the pressure on net interest margin. And so, obviously what it implies is, you think about the pattern of linked-quarter increases in net interest margin in 2022, what our forecast implies, the guide implies is, we’re going to experience linked-quarter declines in net interest margin here in €˜23.
Catherine Mealor: And as you think back to – I feel like the perception, or at least looking at the margin trajection for our estimates and consensus, still had not a lot of expansion from here, but still a fairly stable margin, which assuming you were more asset-sensitive then, it seems like you are. What do you think is the biggest surprise or the biggest change to this NIM trajectory versus maybe where you were last quarter? And is there – begs the question, is there anything else besides just the funding costs coming in higher? Is there anything else just to kind of think about as you’ve changed your perception of asset sensitivity?
Tom Owens: Well, it’s a good question, and I don’t know that we have changed our perception of asset sensitivity. So, for example, if you look at our loan yield beta, which continues to be in the neighborhood of 50%, and when you look at the numbers that we publish and that we file in the call report in terms of our NII at risk, those numbers reflect the kind of betas that we’re talking about here as our baseline scenario. So, Catherine, there really hasn’t been a change in perception internally. I would say the change fundamentally, again, in the industry, I mean, if you look at the broader industry, I go back to the H8, what you see there is, the run rate is for double-digit growth in loans in the industry. And we are part of that and experiencing very robust loan growth.
You have seen a flatlining and now an outright decline in the deposit base in the industry. So, to me, the difference, if there’s a difference in perception externally about Trustmark, the difference is us really wanting to be proactive as we come into €˜23 here to make sure that we have a trajectory on deposits that can keep pace with loan growth and maintain strong liquidity.
Duane Dewey: Yes, Catherine, I would add in – this is Duane. I would add in just what Tom’s last comment is. I do think that loan growth that continued in the latter half, or really accelerated in the latter half of 2022, and what we look out into 2023, still have expectations, and like noted earlier, with some of the investments we made in new talent and new business line, we think we have still solid expectations on the loan growth side, which I think then that emphasizes the need to keep pace on the deposit side. And it’s an extremely tight – it’s a tightening liquidity and a competitive environment for deposits. And I don’t know that I would term that necessarily a surprise, but we’re certainly monitoring, and that’s what we’re expecting as we move into 2023.
Tom Owens: Yes. The last point I’d make, Catherine, again, I would just reemphasize how challenging the environment is and the uncertainty, right? I mean, it’s just that – it’s that confluence of unprecedented set of circumstances really. So, we’re like a lot of our peers in the broader industry, kind of figuring out a tactically, as well as strategically on the deposit side as we go.
Catherine Mealor: And you could argue last cycle, if you looked at your last cycle beta of the proxy, you didn’t have this level of growth last cycle. And so, that intuitively makes sense that your beta is higher, just given your growth outlook is higher as well.
