Todd Clossin: Yes, I think it’s the markets that we’re already in and where we have LPOs, right? So, part of our idea with the LPOs is to get to know some of the markets a little bit better, and then do a follow-on acquisition, potentially. We did that in Pittsburg, set up LPOs 15, 18 years ago, and then ended up buying two banks, eventually, up in that marketplace once we got to know it. So, I think that the — outside of the existing footprint that we have, we have LPOs in Northern Virginia, Indianapolis, Nashville; I think those would all be interesting markets that would still be within that geographic timeframe or geographic drive distance that we’re looking at. So, finding something that would be in those growth year markets, try to continue to story that we’ve been working on, which is to have us be a little higher-growth profile company, while still maintaining good — obviously good credit quality.
Wouldn’t be opposed to doing something that was in market already if there was decent expense takeouts, right, branch overlap, that kind of stuff, I think that would be interesting to look at if something like that came along. But the focus really is on higher-growth markets, Pittsburg, Columbus, Cincinnati, Louisville, Lexington, the suburban D.C. market, but throw Northern Virginia, throw Central Tennessee, throw Central Indiana in the mix as well too; those would all be areas of interest to us.
Casey Whitman: Great, appreciate it. Thanks.
Todd Clossin: Thank you.
Operator: The next question comes from Catherine Mealor with KBW. Please go ahead.
Catherine Mealor: Thanks. Good morning.
Todd Clossin: Hi, Catherine.
Catherine Mealor: Wanted to go back to the margin and funding conversation. And I know you mentioned, Todd, that you added a little bit of borrowing this quarter but you continue to see CD balances decline, so kind of chose FHLB over CDs. But do you think, as we move into 2023, that changes? And so, if we look at the balance of FHLB at quarter-end, should we model that to decline a little bit at the end of the year, and maybe grow CDs, just curious how you’re thinking about the higher-cost more pull sale-ish funding strategy to fund growth? Thanks.
Todd Clossin: Sure. Why don’t I hand that off to Dan.
Dan Weiss: Yes, so I would say, Catherine, a couple things. Obviously, the securities portfolio right now represents about 22% of our balance sheet. That’s a little heavier than where we’ve maintained it historically. So, we do expect to get some funding from that securities portfolio and reinvest into loans. So, right now, that’s kicking off about $50 million per month, $150 million per quarter. And so that would be where the first dollar would come from. If we look towards CDs as relative to FHLB borrowings, as Todd mentioned, we do have some CD rate specials. So, we expect that that, more or less, will slow down some of that CD runoff. But I would say to the extent that we see — if we did see deposit growth, let’s say, and fund growth were within that $150 million per quarter kicking out of the CD portfolio, I think we would continue then in that case to leverage the wholesale parts.
Of course we have some other levers that we can pull, but I think, today, we would be, to the extent if we needed more than, let’s say, that $150 million per quarter plus the slowdown in CDs, we would be — we would continue to leverage those wholesale parts.
Catherine Mealor: Okay, great. And then I think you mentioned in your prepared remarks about — I think you said that the margin, you expect to be flat for the rest of the year. Can you just circle back on your expectations for the margin this year? And if feels like everyone is thinking about this margin — this quarter’s margin as the peak. But I think you could argue that you might be different than that of your peers, just given your ability to lag funding costs. So, just kind of curios how you’re thinking about peaking
