Gerard Cassidy: Very good. Very helpful. Jamie, circling back to you on one of your favorite topics, AOCI. Can you share with us two things? One, what does the accretion look like coming into 2023 for the AOCI number? And second, in your securities portfolio, I think you showed in your release that the taxable securities are yielding 3% today. What are you guys seeing in new yields as you put money to work?
James Leonard: Yeah. Thanks Gerard. And yeah, I knew when we put you in the queue I was going to get an AOCI question, so, thanks for living up to that. In terms of the AOCI, if you look at year-end levels with the 10-year at roughly 387, the AOCI, earns back with our duration at 5.4. It earns back pretty evenly across that time period. So, a billion or so of TCE earn back per year. Obviously, no capital impact given that we’re category four. If you fast forward to today and where the 10-year is, certainly we’ve had a significant improvement in the AOCI just in the first 19 days of January. So that would be helpful to the TCE as well. In terms of the securities yields, obviously, we’re very pleased with how the portfolio is positioned at a 3% yield.
I would expect that what’s going to happen with the investment portfolio is that it will continue to grind higher each quarter and finish the year at a 310 level. So, the average for the year is probably in the 305 range, because as we’re reinvesting cash flows or seeing opportunities on new investments we’re looking at entry points in that 475 area right now.
Gerard Cassidy: Great. Thank you.
Operator: And your next question comes from a line of Mike Mayo from Wells Fargo. Your line is open.
Michael Mayo: Hi. I know you guys walk — I think it was your phrase that how the maturity securities were like being in the ROTCE motel, if I got that right. And you have hard — what it’s like hardly any securities held to maturity, which gives you flexibility and I’m not sure how much that matters. And maybe just gives you more flexibility as you look ahead, but you’re also one of the few banks that are — if you take the midpoint of your guidance, you’re guiding for higher NII off fourth quarter levels. And I’m — is there a connection between how you’re managing your securities book and that guidance, or are they separate? But really the question is, NII guide as it relates to your securities.
James Leonard: Yeah. Mike, it’s Jamie. Yes, I did reference the ROTCE motel few quarters back. And I guess today’s theme, it’s — the held to maturity is more like a hide the maturity. And it certainly helps having that flexibility to reposition as environments change. But really there’s no one thing that’s driving the strong NII outlook and NIM expansion for us. It really is the result of years of hard work of deliberately positioning the balance sheet for really what is a range of outcomes that still could play out given all of the uncertainty. And it really is a total company effort. And that comes from the household growth, new commercial relationships, product innovation, the FinTech acquisitions, and ultimately sales execution both on loan pricing and deposit generations.
