So we feel pretty good how we’re performing against peers, it is starting to stabilize. So the excess surge deposits have burned down maybe by about 60%, so there’s still a little bit out there. But a lot of those are starting to be sticky and turn into wealth creation. If you dissect the various different segments, the wealthier segment is still having some modest outflows of rotation into interest-bearing as well as rotation outside of the banking industry. So year-over-year the wealthier segment is down about 10%. We’re seeing the mass-affluent segment in deposits on a per customer basis about flat and the mass-market portfolio has actually increased in net deposits and that’s a function of a lot of our strategies that we put in place to really drive primacy and activity and engagement.
And so we’ve seen a bit of a bottoming at the lower end in terms of DDA balances. What we have done to drive that is a lot of product innovation. So we did things like get your paycheck two days early. It doesn’t seem like a big deal, it’s actually an incredibly big deal. That’s driving a lot of primary banking behavior. We’ve got technology we put in place that when you open a new DDA, you’re automatically porting over your direct deposit that seems very operationally oriented. But it actually is a dramatic improvement that things like primary banking behavior which drives low-cost deposits. We’ve made overdraft perform through our Peace of Mind 24-Hour Grace program and a variety of other things, which has also driven a lot of primacy and we’re starting to really rev up the engines on household growth.
Overall, all of those things contribute to some controllable. So we’re – I think we’re outperforming peers on the market, given our starting point in the cycle and we’re continuing to invest to try to further outperform through all of these different initiatives and strategies. It is the long game. These are driving primacy in low-cost deposits. It takes a while to build up scale, but I feel like we’ve got a lot of the right things in place in addition to outperforming on our back-book to win the game uncontrollable where we’re at right now.
John Pancari: So, well, your two-thirds of the deposit base and have all these great strategies you have done. You’ve also been investing in payments capabilities and some new products like sustainable deposits. Maybe you could just offer a brief comment.
Don McCree: Yes, that’s right. I mean, we’ve been broadening out our deposit base quite nicely and as Bruce said, it’s a combination of just the growth in the cash management business overall and bringing on more clients on the cash management side. As I said, in New York Metro, the things that we’re adding are really full wallet for cash management relationships and those bring really nice deposits. And then on the product side, we’ve done a lot around green deposits and carbon offsets deposits in our ESG strategy that was approved to be quite profitable. We’ve built out escrow products and bankruptcy products. So there’s a variety of product development things which are attracting nice operating deposits with some nice breadth for them.
Bruce Van Saun: Right. Thank you.
John Pancari: Okay, great. Thanks.
Operator: Your next question will come from the line of Manan Gosalia with Morgan Stanley. Go ahead.
Manan Gosalia: Hi, good morning, I appreciate all the detail on the office book. It looks like you have a pretty conservative assumption baked into your CRE office reserve levels of 8%. What – I guess the question is, what would you need to see to take that up even more. Or over the next few quarters, as some of your office portfolio comes up for renewal, should we expect the reserve levels go down as you have more normalized NCOs in that portfolio?
