“it is certainly possible, the balance sheet will get smaller throughout the year.”

In context

“e did in 2023 and we’ll leave the exact timing and pace to future calls. Erika Najarian: Thank you. And Mike, my follow-up question is another one on NII, I did notice that your short-term borrowings went up a lot in 2023. And just looking at the asset side, it seemed like it was funding that increase in liquidity to $204 billion [ph] cash in cash at the Fed at period end. And I’m wondering, as we’re thinking about your liability mix in 2024, and then I think your average balance sheet size was 1.91 trillion at the end of the year. I’m just wondering if we should expect the balance sheet to shrink because you don’t, you may not need all those short-term borrowings, or is there a reason why you feel like you want to hold that much liquidity at the Fed at this time? Mike Santomassimo: Well, it is certainly possible, the balance sheet will get smaller throughout the year. I think that’ll just be a function of what we ultimately see on loan growth. How much we end up deploying into securities as we go through the year and where it makes sense. We will let the balance sheet just ebb and flow back down. And I think that’s the way we’re sort of thinking about it now. And I think at this point, there’s not a lot of cost to leaving at the Fed given where the – where IORB is. And so that’ll change as rates start to come down and we’ll calibrate the overall size based on what we think the opportunity is. Erika Najarian: Thank you. Operator: The next question will come from John Pancari of Evercore ISI. Your line is open, sir. John Pancari: Good morning. On the NII outlook of down 7% to 9%, can you maybe help us think about the expected net interest margin trajecto”