Dan Weiss: Yes, so the way we think about that really, and as I mentioned, a couple basis points of expansion here over the next three months or so. Certainly, we’re not expecting that double-digit expansion that we saw here in the fourth quarter, 16 basis points, or anything like that. But I think it’ll be very much dependent on deposit inflows and outflows. Again, going back to that wholesale borrowing discussion, it would be dependent on what loan growth looks like and how much we can fund through deposits, and CD retention versus FHLB borrowings. But generally speaking, we do expect, for example, loans to continue to reprice upward in the second quarter off of those first-quarter rte hikes. So, we’re — we’ve got in our model 50 basis points of Fed fund increase in the first quarter.
But we really expect the funding cost to rise as well such that they more or less will kind of offset or net to zero. And so that’s where we look at kind of a stable NIM kind of in the second quarter, going forward. Again, that’s assuming a 5% Fed funds rate that holds stable as well throughout the year. But then once you get past, call it, second quarter; I think we’ve got a lot of momentum. We’re going to begin to reprice fixed-rate loans that are maturing. We’ll still have the variable rate loans that have repricing terms beyond just the three months it’ll be repricing as well. And I think those tailwinds will really begin to kind of offset the rising deposit costs from a margin — NII standpoint. So, that’s how we — that’s how we look at the margin, basically from second quarter forward, a stabilizing, taking advantage of the pricing or the increase on the asset side, with basically an offset on the deposit — or the funding cost side.
Todd Clossin: Yes, and we’re going to — obviously, the strategy gently is to get to probably mid 90s. Who knows when that will happen, down the road obviously ways, but we are going to be tactical about how we do that. And that’s going to be based on things that are going to reveal themselves to us and the industry over the next couple of months, the next couple of quarters. But, the plan wouldn’t be to keep deposit rates so low that we use up all that that extra balance sheet capacity too quickly. At the same time, we want to make sure that we capitalize on the advantage that we have as well too and make sure that we are raising rates appropriately. Not too fast, not too slow. Kind of slowly let the lion out so to speak until we start to creep up to the upper 80s and then lower 90s and then eventually mid 90s. That may take a few years to materialize. That’s going to be dependent on large part, I think, on what we see on loan growth side.
Catherine Mealor: And last question on the margin, towards the end of the quarter and kind of new pricing as well?
Dan Weiss: Yes. So, we do have one slide for which show kind of a the new loans that are coming on the coming on right around 6.25%. And if you look at kind of a spot yield for the month of December we call it, loans were coming around 679. So, that’s about a 55 basis point increase the month of December versus the quarter. So, that’s kind of about where we are at.
Catherine Mealor: Right. And that’s new loans coming on, not the total portfolio of course?
Dan Weiss: Correct.
Catherine Mealor: Great, okay, all right, great, very helpful. Thank you so much.
Todd Clossin: Thank you.
Operator: The next question comes from Manuel Navas with D.A. Davidson. Please go ahead.
