MananGosalia: And then just from a cash perspective, it seems like the build was a little bit more than you guided to before? I think you had said about $15 billion or so in cash is what you were targeting before. I think you’re target has now moved to $20 billion. What’s driving the change? Is it the volatility in rates? Is it just preparation for LCR? Or is it also just that you can get 5.5% of cash and makes more sense to hold cash over securities?
JamesLeonard: It was mostly the fact that deposit growth outpaced expectations. And in this environment, we want to hold excess cash as opposed to doing anything, adding it to the investment portfolio. We certainly view cash as an asset allocation at these rates, as you referenced.
MananGosalia: So it sounds like at some point, you’d be able to bring that $20 billion down. It might not be in the next 6 months or so. But as rate volatility improves, you might be able to bring that down?
JamesLeonard: Yes, I would say that our balance sheet is elevated due to a couple of reasons. One, the unrealized losses, whether you have an AFS or HTM, you do have to fund those losses in your liquidity buffers. And so should those losses come down, that certainly frees up cash to shrink the sheet or over time as our non-HQLA allocation matures, we will reinvest that in shorter duration level 1s and also allow us to maintain an above 100%, while also shrinking the sheet. It’s just — both of those things are going to be measured more years than in quarters in terms of the cash coming down.
MananGosalia: So just as a clarification then, does that make you more asset sensitive, all things equal now versus, say, last year?
JamesLeonard: We’re pretty neutral right now, how that lines up versus last year, probably a little asset sensitive a year ago, whereas today, we’re neutral to at least in the disclosure showing liability sensitive.
Operator: And your last question comes from the line of Christopher Marinac from Janney Montgomery Scott.
ChristopherMarinac: I know you mentioned a little bit about credit and previous questions. But generally speaking, is the criticized and classified number is going to be within a certain band in the next several quarters? Or do you see them rising more than that?
JamesLeonard: I would say steady based on what we’re seeing now from the delinquency and NPA, all the above and our ongoing portfolio, in the last 12 months, we have rerated 95-plus percent of the portfolio. So based on all of that underwriting or reunderwriting, if you will, I’m expecting steady.
ChristopherMarinac: And if it went higher than you think that would obviously drive more provisions and obviously more reserve build next year, just all things being equal. Is that fair?
JamesLeonard: Sure. Yes.
ChristopherMarinac: Great. Thanks for all the background and information this morning. We appreciate it.
Operator: And we have reached the end of our question-and-answer session. I will now turn the call back over to Chris Doll for some final closing remarks.
Chris Doll: Thanks, Rob, and thanks, everyone else, for your interest in Fifth Third. Please contact the IR department if you have any follow-up questions. Rob, you can now disconnect the line.
Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.
