We’ve retained 75% of those as they flipped over and materially lower prices between 3% and 4%. So you start to see the tailwinds building in that you can imagine the cost of funds in the consumer segment potentially beginning to reduce. We’ll see how it plays out where rates are at. But I do believe we’ve sort of peaked here in Q1, and it’s really driven by the strength of our low-cost performance. So we don’t need to chase high interest-bearing costs as a result of that. So I feel really good about where we’re at.
Scott Siefers: Alright, good. Thank you very much for the color.
Operator: Your next question will come from the line of John Pancari with Evercore. Your line is open.
John Pancari: Good morning. One just on additional color on the loan growth commentary, I know you said it could come in throughout the low end of your initial expectation for the year and you have cited weaker line utilization at this point, where – if you can maybe elaborate a little bit where you see some weakness in what pockets and where do you see some ultimate strengthening there in terms of timing? And then separately, a similar question around your deposit growth expectation, I think for the full year, you had figured out at around up 1% to 2%. Any additional color you can provide and how you’re feeling around that guidance at this point?
John Woods: Yes, I’ll just start off on loans and others can add. But I mean, what we’re seeing is that utilization coming in a little lower in the first quarter and that than was originally expected. But nevertheless, we still see the – in the second half, the interest around putting some working capital to work and commercial activity starting to pick up is really going to drive the reversal of that utilization trend as you get into the second half. On the retail side of things, we’re still seeing good opportunities in relationship mortgage and HELOC and in the private bank, where we’ve gotten a nice start in terms of – which is mostly a commercial lending driven amount of activity in the subscription line space.
And that we see that picking up. So all in, one it is playing out about as expected, meaning we may be just a little bit lighter on loans, but we had expected that would be the case. And then the pickup in the second half will be coming out of the commercial business and private bank. Maybe any other color.
Bruce Van Saun: That’s well said, Don, any color.
Don McCree: Yes. No, I’ll – I think it’s across the board on the commercial side. And Part of it is due to the booming bond markets. I mean, we’re seeing a lot of customers access the bond markets as opposed to draw down existing lines. And then I think there’s a positive to it also, not for loan levels, but customers are running with lower leverage levels because they’ve been concerned about the economy. We’re seeing a broad, more positive view of the overall economy across really wide swaths of our client base. So that would indicate that they’re going to get more active in things like plant construction, working capital, growth, M&A, and so that should drive some bounce back in the back half of the year.
Bruce Van Saun: Anything from you, Brendan.
Brendan Coughlin: Yes. The only thing I would add is maybe just strategically that there’s a lot of ins and outs under the cover. So, as we run down auto by essentially $1 billion and other non-court getting replaced with high relationship, high-returning asset growth, whether it’s on the HELOC side or the private bank. So the headline numbers that you see around our loan growth, what you have to dig into is the transformative use of capital that we’re doing around a handful of areas that have more durable, sticky revenue sources that are going to create more cross-sell around fees and other things over time. So we’re pleased with how that’s going.
John Woods: And then on the – you had a question about deposits. On the deposit side of things in the first quarter. as I mentioned before, we saw DDA flatten out for the first time in many quarters. So that is really good to see. We also saw low cost flatten out. So overall, we were at 42% last quarter in low cost, we’re at 42% this quarter and low cost plus DDA. So the deposit trends from a mix perspective have been favorable. And from a quantity level of deposits at the end of the quarter came in higher than expected. That’s driven by just strong execution and our strategic initiatives contributing as we mentioned earlier, New York Metro and Private Bank along with the blocking and tackling that Brendan and Don have been at for a number of years to invest in the franchise. And so all of those investments are paying off, and we do expect to see deposit growth supporting our loan growth in the second half of ‘24.
Bruce Van Saun: Yes, I would just – I would highlight that – just one last quick piece of color is that very pleased to see the Private Bank now has had kind of two quarters with $1 billion-plus of deposit growth and we certainly think that, that’s sustainable and could even accelerate. So the ship has landed, and we’re off to a great start, and we expect that to continue and even accelerate.
John Pancari: Got it. Alright. Thanks, Bruce. And then on the capital front, I did to see the resumption in buybacks, the $300 million in repurchases this quarter. With CET1 here at around 10.6 or 8.9% when you dial in the AACI scenario, how do you look at the likelihood of incremental buybacks from here. In terms of a pace of buybacks, do you think that that could be reasonable given where you’re sitting right now on CET1. Thanks.
