TimothySpence: It’s not on the CRE side, great question. Not on the CRE side, we’re not seeing. It doesn’t mean we’re out of the woods yet. We’re watching that portfolio. Clearly, there’s stress in that portfolio, but we have so little of it, that’s not driving. And as I said earlier, we don’t have any geographic or product trends. There’s not an industry that’s driving our NPA numbers as we sit here today, we have very little from a delinquency standpoint. And so again, it gets back to how diverse the portfolio is. Yes, I still think we’ve got some pressure on the 550 basis point rate increase that will flow through to our clients. But we’re on top of the portfolio. It’s why we’re stressing 200 basis points ahead of the yield curve.
So we get out ahead of that stuff. And so could it go up a little bit given all the cross-currents, sure, but I think we’re in a great spot. Our client selection has been outstanding. Our through the cycle, very disciplined fundamental underwriting I think gets us through this cycle. And so I feel good about where we are today. And even if it goes up a little bit, it’s very controllable.
JohnPancari: And then secondly, kind of a two-parter. Do you have — I know you mentioned the criticized loans are down in total this quarter versus last. You have the magnitude of that decline? And then on the Shared National Credit side, the portfolio of 29% of loans, I think over the past year that maybe is down a touch. I mean, do you expect that you’re going to reduce the size of the Shared National Credit book? And also what is the criticized ratio for that portfolio?
TimothySpence: So we reduced the — it is about 29%, you’re right. We reduced that portfolio by about 7% year-to-date, given the diving that Jamie talked about earlier, I would expect that number to probably continue to decline between now and year-end. Our portfolio — that SNC portfolio performs better than on every metric than the rest of the portfolio. So it’s under 6% from a criticized asset standpoint. Delinquencies are less than we see in the rest of the book. NPAs are less. So it is some of our strongest performing of the portfolio — the commercial portfolio.
JamesLeonard: John, it’s Jamie. The crit office loans were what I referenced that declined 180 basis points. Crits overall, were up just a little bit.
Operator: And your next question comes from the line of Manan Gosalia Morgan Stanley.
MananGosalia: I wanted to follow up on the RWA diet and the trajectory of rates. I guess does it move into the annual impact how you manage that. So from here, we get the annual moving up 1% or down 1%. Does that impact how you will manage loans? And as we look into next year, what would cause you to maybe lean into low growth? And what would cause you to peel back? Is it just the outlook on credit, what you’re seeing there? Or could the rate outlook impact that as well?
BryanPreston: Yes, it’s Bryan. I would tell you that the outlook on rates has a modest impact on how we think of loans, but it’s more about just composition and more in consumer where we may see some additional opportunity or relative asset classes, you might feel a little bit better about some of the spreads in auto. You’re going to see almost no mortgage production in a higher rate environment, obviously. And that’s probably the biggest implication just given that our commercial portfolio is primarily floating rate, doesn’t really have a big impact from a floating rate portfolio perspective. And it really for us comes down to overall macro, how we feel about what the credit outlook is going to be and whether or not we’re earning adequate returns on the capital we’re deploying.
