Bryan Jordan: Yes, that’s what you said is a rough approximation of what I said, which is that as we look at it today, we’re likely to keep that CET1 ratio given the board support at a constant level around that 11% area, 11.1% area. To bring it down further, I think we and the board would have to be confident that we had greater certainty about the direction of the economy and how things were more likely to play out. So it’s not to say that that’s completely off the table, but as we sit here today, it still feels like 2024 in terms of rate and economic outlook is still a little more uncertain than we would like. We don’t see it as extremely negative. We just see it as more uncertain than we think. Maintaining a strong capital base tends to be more in our favor than bringing it down prematurely.
Brady Gailey: Okay, got it. Thanks, Bryan.
Bryan Jordan: All right. Thanks.
Operator: We now have Steven Alexopoulos from JPMorgan.
Anthony Elian: Hi, everyone. This is Anthony Elian on for Steve. In the second quarter, you added about $6 billion in deposits from the new campaigns, and then you added another $1 billion in 3Q. As the rates on these campaigns move lower in 4Q, how confident are you that you can retain both these deposit balances as well as more importantly, the overall client relationships that you’ve added?
Bryan Jordan: Yes. So we recognize that when you attract new customer relationships, I think the number was something like 32,000 in the second quarter, about 25,000 of those being retail. I think it was about 19,000 new bank accounts in the third quarter. Not only is it important that you attract a new relationship, but you broaden and deepen it. And our bankers all across our markets are working every single day to broaden and deepen the relationships with those new customer relationships, new bank customers. So we have a high degree of confidence that we will retain a significant portion of those. I don’t sit around and think we’re going to retain every one of them, but we have a high degree of confidence that we can broaden and deepen with a significant number of those relationships.
Anthony Elian: Okay. And then total deposit growth was really strong in the quarter, supported by the campaigns, but then non-interest bearing deposits continue to decline. On the guidance slide, you point to DDA balances returning to pre-pandemic levels, but it looks like you’re very close to that level of 27%. So I guess, how much more do you see to get there and by what time?
Hope Dmuchowski: On a pre-pandemic percentage, you’re right. We’re at about a 27%, which is where we were, but on an absolute value, we’re about 2 billion higher. We’ve done the analysis of operating accounts and we think on the downside, we look at how much is in the account versus how much they’re using. There’s only about 2 to 3 billion of additional credits versus debits each quarter. So we don’t feel, we’re not losing clients. It’s balances that have moved to interest bearing, and it’s clients are holding less cash in their operating accounts. The inflationary environment that they have, the macroeconomic environment that they’re working in, they are holding less cash in operating accounts. And so we think if you look at an absolute value, they really got to the point that we had the exact same amount of debits and credits in every client account.
We beat exactly kind of a dollar-wise where we are. We are working very hard to attract new DDA clients as well. As we mentioned, we just launched a new program, a new marketing campaign in this current quarter and a program to go after that. It is a factor of two things there, which is one was the mix we saw earlier in the year and two, just our clients have less cash on hand in their operating accounts these days.
Anthony Elian: Okay. And then my last question, at Investor Day, you provided an ROTC range of 15% to 18% through the cycle, but your adjusted ROTC this quarter was just over 9%. I know the elevated charge-offs this quarter weighed on that, but how are you thinking about the previous range of 15% to 18% for ROTC that you provided at Investor Day? Thank you.
Hope Dmuchowski: That is a through-the-cycle number and we still believe that will be the number. If you look at this quarter and we take out the one charge-off, we add about 3.2% back to ROTC, so we get closer to our range. As Bryan and I have talked about earlier, we are looking to create positive operating leverage. We are looking to return capital to shareholders. And so we still do run our company and look at through-the-cycle, that being our target range. We have no reason to believe that we can’t hit that or that we should bring that down.
Bryan Jordan: As we talked about a number of different times, we are running at higher capital levels today and we believe is sort of through the cycle range as well that has an impact on that. So we still have a high degree of confidence through the cycle. We can drive those sort of mid-to-higher teams ROTC.
Anthony Elian: Thank you.
Bryan Jordan: Thank you.
Operator: Thank you. We now have Christopher Marinac from Janney Montgomery Scott.