Carlos Vazquez: Yes. I – we’ve been cautious with and actually have been building cash because of the uncertainty on the last couple of quarters, Brody, I think we feel a lot better than a lot of that is behind us now. So what you should see starting this quarter is that we’ll start to redeploy some of the cash. We will probably end up with lower credit balances, hopefully because we have a lot of loans first. But even without that, we’ll start to redeploy some of that cash it may not change the profile of the investment portfolio too much because some of that redeployment will probably be in T-bills where the yield is going to be similar, and the liquidity will be basically cash like but it will provide us a tax benefit. So…
Broderick Preston: Got it. Thank you for that.
Operator: Thank you. Our next question comes from Alex Twerdahl from Piper Sander. Alex, your line is now open. Please proceed with your question.
Alexander Twerdahl: Hey. Good morning, all.
Ignacio Alvarez: Good morning.
Alexander Twerdahl: Thanks. Just keeping on that last question on the tax rate on the T-bills. Does the tax range that you’ve provided, the 22%, 25% does that anticipate any additional investment into T-bills as the year progresses?
Carlos Vazquez: Yes. That range incorporates our best guess of what we’re going to do with the balance sheet the rest of the year, yes.
Alexander Twerdahl: Okay. And then I got to dig into just the comments on the buyback a little bit. Can you just sort of – I know there’s obviously a lot of uncertainty in the banking environment, but is it specifically uncertain around new capital rules for CCAR banks? Is it specifically around waiting to see how credit develops? Or kind of what are the trigger points? And then maybe just remind us how the process works. If you do go through and raise the dividend? Is it a similar process to your normal capital plans? Or is it different in any way from what you normally go through each year?
Carlos Vazquez: Okay. Let me kind of walk through some thoughts on capital to – I think we’ll can address a lot of your questions, Alex, as we mentioned in the prepared remarks, we expect to consider a dividend increase in 2023, probably late in the third quarter of this year. And at this time, no buyback is planned for the rest of this year. Obviously, the final decision of any dividend increase especially with our Board of Directors. So they’ll have the final call on that. We described some of our thinking process in the past that as we look at capital action, it depends on us getting – we’re looking for three things to inform our actions; number one, clarity on the path of interest rates; number two, clarity on the path for the economy; and lastly, clarity on the path for regulation.
Those are sort of the inputs that help us to make decisions. Now it is still uncertain. I mean we’re getting some information from the Fed tomorrow on capital, which will be a nice first step to start adding some clarity to the process. By the way, we’re getting information on capital. We still not getting any – haven’t gotten anything on one liquidity framework that may change, which is also pretty important as we think this through. But we’ll start getting some information from – on that front, at least hopefully, tomorrow, and they’ll start informing some of the uncertainty here. Now, so it’s clear exactly when we get clarity in this matter, but those are the inputs that we’re looking for. Additionally, while it’s not a required regulatory ratio, TCE and therefore, AOCI are considerations in our decision-making process.
