And so our premise is we’re not a seller of HSA, but obviously, we’re always doing diligence to make sure that we’re not missing an opportunity to achieve the best value for our shareholders as we allocate capital and make those decisions.
Steven Alexopoulos: Got it. That’s helpful color. John, if I could squeeze one more in and violate your two-question rule. So, just regarding this $100 billion potential threshold, so you guys ended the year at $75 billion. And when we look at some of your peers in a similar asset range, a lot of them are on an RWA diet, right? But when you look at your 2024 guidance, you guys seem to want to be at the buffet. So when you look at that, do you see no reason to slow growth? Like, you feel like you’re very prepared? The proposed rules could change, but that’s no reason to slow your growth in terms of trying to manage the timeline to get there. Just what gives you so much more confidence than some of your peers? Thanks.
John Ciulla: Yeah, that’s a loaded question. I mean, I think that — look, I think we have a ways to go before we hit the threshold. As you can imagine, we’re spending a lot of time looking at our three and five year plans, making sure that we’re prepared from a compliance and risk management perspective, making sure we understand the full impact of the rules, if they ultimately are enacted on capital, on liquidity, on the makeup of our balance sheet. Steve, I think we’ve got enough flexibility. In the asset classes that we grow, we can make economic moves to divest or to slow growth quickly. And we’re not up against the gun with respect to looking at this over the next 18 to 24 months. I think we still have some running room to service customers, to take care of our existing clients, and continue to plan for the eventuality of $100 billion.
And so we don’t think that it’s time to pull back and slow growth now. But every move we’re making and everything we’re doing strategically, we obviously have an eye toward what’s that mean when you overlay the $100 billion requirements. So I know that may not be a satisfying answer, but know that we’re thinking about it. We’re thinking about what it means for our future view on M&A. Do you want to crawl over $100 billion? Do you want to avoid it? Do you want to jump well over $100 billion? Those are the discussions we’re having. And we’re positioning ourselves, quite frankly, because of the uncertainty in the market, to be able to take advantage of any one of those strategies if it’s the right strategy at the time. So I don’t think we’re putting ourselves in a trapped position by continuing to use our differentiated funding base and origination channels to continue to grow at this pace.
I don’t think we are.
Steven Alexopoulos: Okay. Great. Thanks for taking my questions.
John Ciulla: Thanks, Steve.
Operator: Your next question comes from the line of Brody Preston from UBS. Go ahead, your line is open.
Brody Preston: Hey, good morning.
John Ciulla: Good morning.
Brody Preston: Hey, Glenn. I just wanted to follow up on the securities purchases and restructure with a couple of questions. The purchase yield was 6.79% this quarter. So one, what are you buying? And then two, just given the end of quarter purchases, the restructurings, what was the spot rate — spot yield for securities at the end of the quarter?
Glenn MacInnes: Sure. So first on the question, we sold, like I said, $408 million, I think the yield on that was like 128 basis points. And most of what we bought, Brody, during the quarter was MBS, and with it, say, a 3.8 year duration and a book yield of, say [5.80%, 5.85%] (ph) Does that answer that part?
Brody Preston: Yeah, it does. Thank you.
Glenn MacInnes: Okay. And then the securities yield, I think it’s [indiscernible] at quarter-end.
Brody Preston: Okay. And so you continue to plan to purchase securities. If I heard your response to Mark correctly, in the first quarter. So I’m assuming that you’re going to continue purchasing at similar yields that you did here.
Glenn MacInnes: Yeah. Reinvesting. Like, if you think of our securities portfolio that spins off about $300 million a quarter, we would reinvest that and roll it.
Brody Preston: Okay, got it. And then just for my follow-up, I just wanted to touch on Ametros again, thank you for kind of talking about the CDI expense. But I wanted to ask just the 25% CAGR, on the surface, it seems like a pretty aggressive kind of growth target, just given we’re bank analysts. But I was hoping maybe you could discuss maybe setting the synergies aside, why you think that’s the appropriate kind of growth target. And where — are there areas of conservatism within that guidance where you could kind of outperform it organically even without synergies?
John Ciulla: Yeah. Remember, it’s off a pretty small base, and we’ve got historic data, and there’s a great management team there and a great team, and they’ve demonstrated the ability to do it. As I noted, there really is a pretty strong pipeline. You can see the natural growth, it’s kind of like HSA. It gets very predictable, and it’s also like HSA a little bit. And they have great relationships with both their account holders and the insurance companies that they do work for. And so we’ve got pretty good line of sight to growth off a relatively small base going forward. And you’ve got kind of — a bunch of that as contractor future payments. So you kind of know what’s coming in. So I think we feel pretty comfortable that that’s kind of a reasonable range.
Where do we see the upside? I mentioned it in my comments. We don’t factor in right now any other expansion into different product sets with similar characteristics. And I know the CEO there who’s really talented, has good line of sight with capital investment behind him to be able to expand the markets that they serve. We don’t factor in any synergies between account holders in some of our other businesses and cross-sell opportunities. So the upside is really our opportunity to figure out new ways for them to do it. But in terms of our baseline 25% CAGR growth, we feel very confident that that’s kind of a very predictable strong line of sight to that growth over the next five years.
