Richard Stein: Yeah. Ebrahim, I think there’s a couple of things here. To your question specifically, clearly higher interest rates for longer is going to put pressure across the board. And I think that’s, frankly, by design from a Fed standpoint to get things to slow down. The biggest impact is going to be in the leverage lending portfolio. We’re starting with higher levels of leverage. Clearly, higher interest rates impact free cash flow. One of the things that we do is when we do our underwriting, and frankly our quarterly monitoring is we will go back and look at the rate curve. And in fact, we look at — we underwrite the rate curve, forward curve plus 200 basis points to make sure that there’s enough cushion in free cash flow so that when we’re underwriting and taking on these loans, we can — we believe these borrowers can withstand the pressure of higher rates through their margins and free cash flow.
I think the other thing we’re watching for, and as we think about the economy and Tim referenced labor, both cost and availability that in certain segments continues to put pressure on margins, particularly for those industries that have a mismatch between the revenue management and their expense management. So, maybe they’ve got long-term fixed price sales contracts they’ve got to manage through with short-term labor. And probably the most acute example of where this is happening is in pockets of healthcare, senior living. We’ve talked about not-for-profit hospitals, which have low margins. The cost to deliver care and service has gone up pretty dramatically. You can look at nursing availability and wages is a really good example. And there’s a lag there in the revenue cycle in terms of reimbursement rates, whether it’s public or private, where these companies — for these companies to maintain margins, profitability.
And so, in those cases, we’re looking at other things the quality of the balance sheet, liquidity and liquidity burn rates. But no question that the higher — as rates are higher for longer, it puts pressure on businesses. I think the last thing, and this is part of client selection is understanding the ability of our borrowers to adapt and the resilience to these things. So, it’s not just a situation where rates are higher, and companies don’t adapt or consumers don’t adapt. And it’s part of the relationship model and part of the way we go to market in terms of the advice and counsel with our customers, understanding what’s happening, looking for alternatives, finding new ways to finance these customers. So that resilience through the cycle will continue to endure.
Ebrahim Poonawala: That was helpful. And I guess, just one quick follow-up, Jamie, on Dividend Finance. About $100 million of provisioning. Anything else around Dividend Finance in terms of growth outlook this year versus last year that we should be aware of? Are things picking up or slowing down as we think about just the underlying growth in the business?
James Leonard: Yeah. We feel very good about the business that Dividend is doing, especially on the solar side of the aisle. And for us, we’re expecting roughly $4.5 billion of originations in 2023 with a weighting of 90% solar, 10% home improvement. Home improvement we’re less enamored with. But again, it’s a good product offering for other points in the cycle. So, it’s being deemphasized, and solar continues to do incredibly well. And if anything, there’s perhaps a little bit of upside to our NII guide on Dividend for 2023, just given the strength of the business as well as the pricing power.
Ebrahim Poonawala: Noted. Thank you.
Operator: Your next question comes from the line of John Pancari from Evercore. Your line is open.
John Pancari: Morning.
Timothy Spence: Morning.
John Pancari: On the credit front, I know you gave us really good detail on delinquencies and non-accruals. Do you have what criticized assets did in the quarter? And what areas of criticized they have migrated negatively?
