BryanPreston: Yes, absolutely. Thanks, Jamie. In general, I think what we’re seeing is that it’s a combination of — it is local and a national impact right now. And what you’re seeing is that you may have periods of time where the dominant players or the bigger players in specific markets may just have a lower liquidity need. And so that gives you a little bit of an opportunity to be a little bit more aggressive and do well from a share perspective. But what we’ve seen since March is that tends to rotate around a little bit. And ultimately, as people start to realize as deposit competition is moving in the market, you’re just seeing people then start to react. Your most rate-sensitive customers are absolutely focused on the national markets.
They tend to be the ones that are most willing to use a non-traditional provider, and so you definitely see some of that. But in general, it tends to — you still tend to have some opportunity to take advantage of some geographic differences, but those geographic differences can rotate over time.
Operator: And your next question comes from the line of Ken Usdin from Jefferies.
KennethUsdin: I think you guys said in the conference season that the fourth quarter would likely be the bottom for NIM and the first quarter of next year will be the bottom for NII dollars. Just wondering, given the guide you gave today, if that still foots to that and anything we should be thinking about in terms of getting to that NII bottoming?
JamesLeonard: The first quarter, the day count is what will drive that NII trough. The NIM whether it’s the fourth quarter or the first quarter is going to be driven solely by how much excess cash we have from the strong deposit performance. So we’ll see, but it’s going to be one of those 2 quarters.
KennethUsdin: And then as you think forward, how do we understand the benefit that you’ll get once rates get to a peak about fixed rate loan repricing. I think it’s clear to understand how the securities book moves. But on the loan side, can you walk us through just how much benefit you might be able to see as we get into next year from that side being able to offset any lagging deposit pricing?
JamesLeonard: The consumer book, in particular, is where most of the fixed rate repricing benefit resides. If you look at 2024, we’ll have about $8 billion of consumer loan payoffs is how we model it. And front book rates are 200 basis points to 300 basis points higher than back book rates. And so if you take that, coupled with, call it, $4 billion in security maturities and cash flows you end up with about $300 million tailwind on an annualized basis. Obviously, that will happen during the course of 2024, so take half of that for the in-year effect. But you’re looking at $300 million type of run rate benefit just from one year’s repricing.
KennethUsdin: If I could just ask one last one. The swap slide you have just talks about the ’25 — 2025 versus ’23 update. Is there anything different or any thought process different about some other banks have been adding securities based swaps to protect capital and add a little variable rate juice? Have you done anything like that incrementally? Or is that slide looks pretty intact in terms of how you’re approaching swap portfolios of both loans and securities?
BryanPreston: We’ve done nothing incremental at this point. Obviously, we’re paying attention to the market and evaluating opportunities. I think more than anything the, as Jamie mentioned, the lower lockout structure of our portfolio ultimately is our hedge to higher rates right now because we now have those defined maturities that are going to come in, and we think that keeps us relatively well positioned. But we’re constantly keeping an eye on the market and figuring out if there are opportunities for us to continue to improve our positioning.