Ebrahim Poonawala: Understood. Just as a follow-up to that, I guess spreads widening, tightening credit is one thing. Are you also seeing demand fall off? Like as you look through your commercial customer base, both in West and Southeast, we’ve heard from some other banks where things have really cooled off in the last month or 2. Are you actually seeing that from your customers where they are pulling back around investment spend and activity?
Timothy Spence: Yes. We are seeing some softening in demand. There’s no question about that. I think in general, part of its conservatism on the part of the clients. I think and the lack of visibility that they have into what the economy is going to look like 18 months from now. I think the other dynamic that we hear from clients is they are saying they’re a little bit nervous about credit availability. So there’s an interaction effect here that you have to take into account. But I was on the phone with two large clients, one in the medical field, one in the real estate field, in the past 1.5 weeks. And in both cases, they had gone out and surveyed their bank groups, and there were a lot of, hey, we’ve allocated all the capital we have available to invest in the second half of the year sort of responses that they were hearing back and/or real constraints on the way that they have to spread ancillaries.
So I think there is a dynamic that will materialize here where demand will be lower for credit because the cost of credit will be higher. And that’s the interaction effect that I think as we roll forward here, we’re going to continue to see in addition to just general caution.
Operator: Your next question comes from the line of Michael Mayo from Wells Fargo.
Michael Mayo: I’m not sure if Jamie was quoting Aristotle earlier. One Robin does not make a spring. But we’ll stick to the Aristotle quotes. So excellence is never an accident. So in terms of operating leverage or positive operating leverage, I mean, you did guide revenues lower by 350 basis points, taking the midpoint, and you didn’t change expenses, and that’s consistent with the industry. It looks like you could still have a shot at positive leverage, but doesn’t look that way a whole lot or — and for next year, and there’s only so much you can do about higher rates and inverted curve. But do you think you have a shot for this year? How do you think about next year? Do you double up on your expense plans or do you preserve the infrastructure for potential additional growth?
Timothy Spence: Yes. Mike, it’s Tim. I’m going to take that one. I mean we are working on expenses. The severance item that we called out as part of an exercise that we ran, just to try to rightsize the resource base here for demand, given the outlook in the environment. And as you know, the primary outcome of all of this investment we’re making in the core platforms is to bring more automation and straight-through processing to the business, which we think is going to provide a lot of intermediate-term expense positive expense outcomes. I think what we’re trying to do is to manage the expense base and the focus on positive operating leverage around sort of three-year increments. So if you look back over the course of the past three years, we have the lowest expense growth.
It’s something like half of what our peer group average is in terms of noninterest expense, annual compound annual growth. And we were growing revenue at a little more than 2x the rate we were growing expenses during that period. I think we have every intention to do exactly the same thing over the course of the next three years. What we want to make sure that we’re doing though is that when we make an investment, we finish the play, we get the outcomes of the investment and we move on. And I try to correct at the midpoint, you run the risk of having started a lot of things. And then you don’t get the excellence that you mentioned at the beginning. It’s the bench bird cycle I referenced when I talked to Erika.
