Robert Butterfield: Yes, sure. So I mean our stated deposit specials, we haven’t changed those since May. Really, we hit — because of our strong liquidity position that we have and strong core funding base, we have had to chase the market completely all the way up. But the rate on our savings right now, the stated rate, it’s tiered, but the top tier is 4% currently on that. But we are willing to make some exception pricing for our very best clients in that particular product. And we would probably have exception priced up into that 5% range. But the average cost on that particular high-yield savings account right now is running right around 3.61% is where we’re at on average on that account.
Andrew Terrell: Got it. Okay. Those are all the questions I had. I appreciate you guys taking time for me there.
Mark Grescovich: Thank you, Andrew.
Operator: Thank you. [Operator Instructions] Our next question comes from the line of Kelly Motta of KBW. Your line is now open, please go ahead.
Kelly Motta: Hi. Good morning. Thanks for the question. I want to follow up on the —
Mark Grescovich: Good morning, Kelly.
Kelly Motta: Good morning. I wanted to follow up on the deposit side. I think, Rob, you made a comment in the Q&A that it doesn’t necessarily make sense to chase deposits here. Just wondering, I saw in 4Q with deposits down, you kind of backfilled funding with FHLB. Just how we should be thinking about the funding of growth and the use of wholesale funding as we look ahead with kind of that low to mid-single-digit loan growth anticipated?
Mark Grescovich: Yes, Kelly. I mean our — we did see an uptick in our FHLB advances, but I will point out our reliance on wholesale funding is very small, but we did see that uptick. And I mean, if you look at the activity, we saw that about a $90 million decline in retail deposits. And some of that was event-driven activity, so not necessarily something we expect to continue there. And then we also let $55 million of brokered CDs run off as well. And so, I would look at part of the increase in FHLB advances as essentially covering the brokered CDs that we roll off there. And our brokered CDs, I mean, are also very small at this point at $108 million. And — but as we let those roll off, if the deposit activity overall doesn’t — retail deposit activity doesn’t cover, we’ll have to cover those with FHLB advances.
But the advantage of the FHLB advances is we’re staying short on those. So it’s essentially overnight. So we’re able to pay those down as deposit activity comes in. And then clearly, if rates start to come down later in the year, then it will give us the opportunity to pay those down very quickly. But I think from a loan growth standpoint, we’re looking at the roll off of the securities. So we’re getting about $60 million of cash flows off our security portfolio. So part of it will come from that. We could consider some additional security sales similar to what we have been doing here. Although given the current rate environment and everything that’s going on, I mean, we continue to kind of evaluate all options there. But other than that, I think it would come kind of the last bucket that we’d use as infill as those FHLB advances.
Kelly Motta: Got it. And I like to circle back a bit the margin going through what you mentioned about loan yields and being able to offset pressure if there’s maybe one or two cuts, but it would be more draconian or more punitive if we potentially follow the forward curve. Is that how to think about it with the margin that you might see some greater relief on margin with some modest rate cuts, but there would still be greater downward pressure, at least initially, if rates follow the forward curve, just trying to kind of where expectations relative to what the market is pricing in versus what KBW — what we have internally on our rate expectation side.
Mark Grescovich: Sure, sure. Yes. No, I think that’s accurate. I mean, I think we’re well positioned for kind of a gradual decline in interest rates, because I think we’re going to — the adjustable rate loans that haven’t repriced to the cycle, I think they’re going to benefit us if you see 25 basis points at a time. If you see two or three cuts in the second half of the year, I think the adjustable rates will cover that, but if the Fed got more aggressive than that, and then I think temporarily, you’d see more impact on margin. But again, it’s those adjustable rate loans as time goes by, will continue to reprice up unless rates really come down more rapidly.
Kelly Motta: Super helpful. Maybe last question for me, maybe for Jill. It looks like there was, obviously, in a very small base, but a little bit of an uptick on early delinquencies. Just wondering if there’s anything you’re seeing there to just normal kind of later payments around the holiday season. Just wondering if you could provide any color on that.
Jill Rice: Yes, Kelly, that’s exactly what it is, is year-end holidays and just normal delinquencies. I think what I would emphasize is that, when the credit metrics are as clean as they have been, any little change moves the dial, so 0.4% delinquency is still very strong.
Kelly Motta: Absolutely. Thank you so much. I’ll step back.
Mark Grescovich: Thank you, Kelly.
Operator: Thank you. Our next question comes from the line of Timothy Coffey of Janney. Your line is now open, please go ahead.
Timothy Coffey: Great. Thank you. Good morning, everybody. I guess for Mark and Rob. As you kind of look at the type of depositors that are still chasing rate, are you seeing a difference between your urban customers and your more rural depositors?
Robert Butterfield: Hi, Jim, it’s Rob. Thanks for the question. Yes. I mean I think it’s — I think we are seeing a little bit of different behavior there. In general, I would say, our real clients on is probably as more consumer type deposits, not that there’s not a number of commercial clients there as well, but on average, and then Metro probably has a higher percentage of business. And so, I would — so rather than rural versus urban, I would probably characterize consumer versus commercial. And I think we’re seeing that consumers are probably even more rate sensitive than some of our commercial clients. And so we’re probably seeing more movement there. I mean clearly, commercial clients are managing their balance sheet at this point and moving stuff back and forth.
