Chris O’Connell: So wanted to circle back to the margin discussion. It seems like the deposit flows are starting to stabilize in the first quarter. Can you talk about what you guys are putting out there on deposit pricing in order to keep your current customers and gain new customers and how you see that progressing over the next couple of quarters?
John Connerton: I think on the term, Chris, so CDs from our consumer perspective that’s anywhere between 3.5% and 4% depending on what market we’re in. Then on the savings side, where we’re talking about commercial savings, we can utilize kind of our geographic footprint a little bit where we don’t have some business, can be a little more aggressive and go with some promotions on business accounts that could be as high as 3.5% to attract new business.
Chris O’Connell: Got it. Given the margin guidance down 10 bps in the first quarter and then stable. Given where your deposit costs are now at 51 basis points and where those new deposits and deposits are repricing throughout next year, I would think, given the variable loan portfolio that the first quarter should be the least amount of impact and then there should be pressure thereafter as the deposits continue to get repriced. Can you just talk about like why that may not occur? And I guess like what goes into the margin outlook and the trajectory after the first quarter.
John Connerton: Sure. I mean the difference between the fourth and the first quarter is just the level of borrowings that we had spiked at the end or during the fourth quarter. And it’s the categories of where we had some dollars move out, so that the fourth quarter had some demand deposits move out, in particular, some of our larger clients. So that’s going to have kind of an oversized impact from fourth to first quarter, and then we do expect that stabilization. So we’ve said in the past, the last cycle, we had about a 37 to 39 beta, and we still expect that. So if you kind of calculate that through, as the year goes through here, we’ll get closer to a 2% cost of interest-bearing liabilities with an average somewhere between 1.65% and 1.85% during the year.
Chris O’Connell: Okay. And I guess but still, given that the deposits are going to be repricing throughout the year, not just in the first quarter and a variable portfolio is going to stop repricing after the first quarter for the most part, how does that fit with the flattening trajectory?
John Connerton: Well, I mean, we have some funding that’s going to come in the first quarter and stick around. So fourth quarter is a low point and the beginning of the first quarter is a low point, so we expect our borrowings to shrink and reduce. And so the first quarter is kind of oversized from that NIM compression.
Chris O’Connell: Okay. Got it. And as far as cash balances still pretty low here at like just $6 million or so, is there — how do you guys see that progressing over the next couple of quarters?
John Connerton: I think our cash balances will stay fairly tight because any opportunity we can, we’ll pay down on our borrowings which are more towards the short end at this point.
Chris O’Connell: Okay. Got it. And for the expenses, the outlook is a little bit better, I think where it was last quarter. Can you just talk about any seasonality that you expect in the first quarter versus the remainder of the year and maybe where your FDIC costs will start off in the first quarter given the higher assessment rate?