Will you go much higher than that? Is there — do you have a limit as to how high you want to go or is this sort of a — kind of like your overall strategy to take what the market gives you here?Timothy Crane I think a little bit of the latter, David. We’ll kind of see where the curve goes here. But as you can see from the interest sensitivity slides that we included in the deck, we’re getting close to the point where we’re more neutral than that. So we think these last couple were nice adds. We caught the market at a good time. And if rates start to drift downward, we’ve got a little bit of insurance that will help us here. So I’m sure, again, opportunistic.David Long Okay. And then the — you talked about the mix getting closer to where you were pre-pandemic.
Now most of the last 15 years, we’ve been in a zero interest rate environment outside of, what 2018 and ’19 really. Can deposit — or can non-interest-bearing deposits drop materially from here, go back to pre-GFC, 15 years ago, the average for the industry was almost half of what it’s been since then. Can we go back that low or is there structural changes that won’t allow non-interest-bearing deposits to go down to 15% to 16% for the industry? How do you see that?Timothy Crane Well, I think for us, the structural change has been the growth of our commercial businesses. And so they carry with them DDA deposits related to paying for both treasury services and excess. So I would hope that we don’t go back that low and that we’ve got some very material differences in terms of how we looked pre-2008 or 2010.
But clearly, the events of the second half of March have everybody to looking at their deposits very carefully. And so those conversations continue around the bank. But our treasury results continue to be good. And so more and more of the balances here are used to pay for treasury and other services.David Long Got it. Thanks. I’ll jump back in the queue. Thanks, guys.Operator Thank you. Our next question comes from the line of Chris McGratty of KBW. Your line is open, Chris.Christopher McGratty Great. Echo the nice words towards Ed. in terms of the — of course. Tim or Dave, maybe on the margin, the 370, I think, in the release in the next couple of quarters. Maybe more of a medium-term question. If the forward curve plays out and you get cut next year, like how much downside from 370 do you see?David Stoehr Well, I mean, it depends on how steep you think it’s going to drop, I guess.
You can look at our — like our hedges for it. We think we’re fairly balanced as far as our deposits and our loans goal. We’ve really mitigated the upside and the downside. So we give that sensitivity in the press release. But like the derivatives, if you look at that, we probably average out in the — on the swaps in the high 3% range. And so if rates came down 150 basis points, then those would actually start to contribute to the margin. So probably a little bit of pressure down 150 basis points.And then after that, we hold on. But in the prior cycle when the pandemic hit and rates dropped dramatically, as you know, our margin fell into the mid-2s. We think this margin would stay in the 3s. And so we think we’ve mitigated some of that downside risk.
But I guess it depends on the shape of the curve and the slope of it, but we’re hoping to hang on to what fairly substantially with a little bit of pressure if rates drop dramatically until the mortgage could kick back in to offset that.Christopher Edward Okay. Great. Maybe just as a two follow-ups. I think in the past, you talked kind of high-single digit expense growth. I appreciate the color for next quarter. But just given the changes in the environment, is that still like a reasonable ZIP code for a full year? And then also, can you help us on the covered call trajectory obviously, you’re pretty active there. Thanks.David Stoehr Yeah. We’ll have to see whether the regulators do anything dramatic that would change. But barring that, I don’t think we have a different outlook for our expense structure this year.
We’re pleased with this quarter. There’s some unique attributes that kept it lower, like the health insurance claims were down a little bit, et cetera, but — and mortgages are sort of at their low point as far as things go.We hope mortgages actually pick up here, which will increase the expense base, but we’ll have more revenue there, too. So that’s not a bad reason for the expenses to increase. But we still hold on to that for a full year. There will be some increase, as I said, in the second quarter with the acquisition and the marketing and it will probably help, insurance claims will probably normalize, et cetera. But we sort of focus on the net-net because as [indiscernible] goes up on the revenue side, the expenses go up too.And as mortgages goes up on the revenue side, expenses go up.
