Ben Gerlinger: I was curious, it was obviously a big quarter on deposit growth, I think, largely due to the specialty rent. I was curious, are you seeing any other deposit trends just outside of that Lunar New Year special? Anything we might see kind of extrapolating what you’ve seen now that — into 2Q or possibly the rest of the year?
Christopher Del Moral-Niles: I think broadly speaking, we are pleased to see commercial, consumer and our overseas customers all contribute to the growth in the broad spectrum of deposits. From a product side, we saw growth in interest-bearing checking, money market and time deposits. So essentially, as long as there’s some yields, customers are willing to reallocate their portfolio and see the balances. Obviously, the downside to that is we saw shrinkage in the non-interest-bearing DDA. And I think that’s the fundamental migration that, we’re all zeroed in on and trying to make sure, we understand how that continues to evolve in this higher for longer context.
Ben Gerlinger: Got you. That’s helpful. And then I know on the guidance. This question is a bit nuanced. So it just picking up loan growth in Q2. And I hate to ask, but is it fair to think that average balance sheet, is pretty minimal and it’s more kind of a late June? Or do you think it ramps throughout the entire quarter?
Christopher Del Moral-Niles: We see evidence of positive trends in our pipelines. And so, we think we’ll see positive trends pick up here in Q2.
Operator: Your next question comes from Manan Gosalia with Morgan Stanley. Please go ahead.
Manan Gosalia: Hi, good afternoon. Can you talk about the drivers for loan growth from here? I know you note that it should pick up in 2Q. And then in your broader macro outlook, you called out, resilient first half, with a softening economy in the second half. Can you talk about, why you’re expecting the economy to soften in the second half? And if it doesn’t, is there some upside to those loan growth numbers?
Christopher Del Moral-Niles: Sure. So I think, we’re following our cues from the Fed, and the Fed has said that they’re proactively trying to engineer a softer landing. And so that seems to be baked into the forward curve. And given that context, that’s the environment that we’re assuming. The reason we’re confident, we’ll see the loan growth pick up is really driven, by our own interactions with our customers and the pipelines that we see. So, we expect to see C&I growth happen, because we have term sheets and conversations that would lead us, to expect that those are going to close. We expect to see residential come through, because we know those loans are in the pipeline. They’re already there, and they’re just in the process of moving through too close. And so, we’ll see residential growth, we’ll see C&I growth. And again, we’re not focused on CRE growth, but we may see some of that, too.
Manan Gosalia: Got it. And maybe a follow-up on the question on criticized assets. I know it’s similar to what we’ve seen at peers. But I guess one point of difference is, that you did also have the criticized assets in the CRE book rise, which we haven’t seen at many peers. So I was wondering, if you can just shed some light overall. Was this a deep dive that you did? How comfortable are you with those credits? And why not move the loan loss reserve a little bit more, given this higher level of criticized assets?
Irene Oh: Yes. Great question. So with the criticized assets movement for commercial real estate, I would say it’s pretty broad-based. There isn’t one sector industry, or geography that we are more concerned about. And maybe more importantly, we do not believe we have concentrations of risk areas we’re very concerned with. On the calculation and the allowance calculation, as you know, there are some confines as far as the CECL model. And we’ve disclosed this in the past, as far as the fact that for CECL for us, we use a multi-scenario approach. So, I think that gives me comfort as far as, it’s a little bit more heavily weighted to a downside scenario. With that said, I think with things that are feasible for us with the qualitative and the quantitative reserve. Now that’s something on the qualitative side, we want to make sure that we continue to add, if appropriate, and that’s what you’ve seen a little bit happen in this quarter.
Operator: Your next question comes from Brandon King with Truist. Please go ahead.
Brandon King: Hi, good afternoon. I noticed there was a healthy pickup in loan yields in the quarter. So I was wondering if that’s a reasonable pace to expect over the next few quarters, and if there’s anything to call out there?
Christopher Del Moral-Niles: No. I think obviously, our residential mortgages are coming on at a higher rate than the portfolio, and that’s additive. Broadly speaking, our commercial yields and the new loan volume pricing, is roughly in line with where it’s been and there’s not a material uptake.
Brandon King: Okay. And then on the CDs – for CDs when you look at your repricing and maturity schedule, at what point are CDs rolling over to maybe a stable rate, and maybe when – or if that kind of turns into a tailwind, maybe in the back half of this year?
Christopher Del Moral-Niles: Yes. So, we’ll see $4 billion to $5 billion of CDs roll over each quarter over the next couple of quarters. Obviously, we just put on the $2.5 billion of the Lunar CD Special, and that will come off in the third quarter. So the third quarter is the heavy quarter. And that’s we’re anticipating that there might be some rate movements that, happened in the third quarter, and that will play into that.
Operator: Your next question comes from Ebrahim Poonawala with Bank of America. Please go ahead.
Ebrahim Poonawala: Hi, good afternoon. I guess just a follow-up on credit, like on Slide 19, I think where you disclose 47% of CRE customers have interest – derivative contracts, I guess, hedging them against higher rates. Just talk to us in terms of the deep dive, or the portfolio reviews that you’ve done. If we are in a higher for longer over the next two years, how much risk within that CRE book increases, as these derivative contracts? I’m assuming at some point roll-off, and just how you’ve assessed that in terms of the potential risk exposure tied to this book? Thank you.
