It’s not just, by the way, just particularly different at East West, in fact, throughout the country, we see the statistics from this economic report that people still buying homes. So, we’re just getting the fair share of the benefits.
Operator: Our next question will come from Dave Rochester with Compass Point. You may now go ahead.
Dave Rochester: On the margin, you mentioned the rate hike coming up would be helpful. I was just curious how much uplift you guys expect to get from that in the margin? And just to reiterate, you’re not assuming a hike in July, you have an October hike in your guidance in this July hike but obviously be a better situation right off the bat versus your guidance here, right?
Irene Oh: That’s right. That’s correct. I think just to clarify our guidance is based on the forward curve as of June 30. Certainly, I think market expectations moved a little bit since then. The lift from the rate hike, let me say you that number, I don’t see — I don’t have it in front of you day, but certainly, it helps given the variable rate loans that we have. I also say that rate hike not — given the current environment, I think we’re being conservative on kind of the deposit beta assumption with the expectation that even if rates do not increase from this point in time, they may still elevated for a period of time before rates decrease. So that’s also underpinning on our kind of NII and NIM guidance. I’d also share kind of the continuation of my comments earlier.
So about — we laid off about $600 million or so quarter-to-date. Our plan is about $1.7 billion over the course of the second half of the year. And with the pipelines and what we’re seeing on the deposit front, we think that’s very achievable as far as $1.75 billion of broker higher cost deposits that will run off.
Dave Rochester: Got it. Is that part excluded from your guidance? Is that just sort of icing on the cake? Or are you including that?
Irene Oh: That’s included, but we’re modeling around range around that how about that data.
Dave Rochester: Yes. That’s great. And my follow-up on the expense guide, it would just be great if you could talk about the drivers for the increase in that versus your prior guide? And if you see any potential cost save opportunities that you guys could pursue?
Irene Oh: Yes. Great question. I think when we look at the expense guidance and also the increase from our prior guidance, a couple of things. One, year-to-date, the actual results of — and the expenses that we’ve incurred us far, when we look at the remainder of the year and kind of just the sentiment around things, certainly, things are a lot different than they were at the start and mid April. That’s certainly part of the reflection on what are the expenses, what are the investments that we need to do to sustain the growth. As Dom had talked about, we are continuing to see opportunities to grow, frontline, back office also from a risk management perspective. So those are the real drivers around that. Nothing really unusual in the near term, but we are hiring headcount is over — is up year-over-year.
I think drivers to reduce, certainly, I think the environment changes. Now there are some levers there as well. But I think at this point in time, we don’t expect that, Dave.
Operator: Our next question will come from Manan Gosalia with Morgan Stanley. You may now go ahead.
Manan Gosalia: I just wanted to get a sense of what you’re seeing in terms of new customer gains in your footprint on both the loan and the deposit side, especially given the strong growth that you’re seeing on — in resi? Are there any gains in business that you’re getting from either legacy Silicon Valley Bank or First Republic customers in your footprint?
