Timothy Spence: John, I just was going to say on the equity side, all you’re seeing, I think, in the consumer for us at the moment is just seasonality. Like a sequential comp from the third quarter to the fourth quarter are the wrong comparisons. Just given the natural seasonality in those businesses, I think it’s better just to look at year-over-year. And we expect consumer credit to normalize over time. That’s reflected in the guide that we gave. But the delinquency dynamics there are really no different than what you would have seen pre-pandemic, other than the fact that they’re still muted relative to what we would have had in the past. So, I — personally, home equity is not the area that’s been an area of focus for me. That’s for certain.
John Pancari: Yeah. Yeah. No, I got that. I just saw the reserve addition as well to the home equity allowance.
Timothy Spence: Well, actually, the dynamic there is that for the first time in as long as I’ve been at the bank, we actually had quarter-over-quarter home equity growth. What’s driving that outcome, but not a change in perspective for us on the quality of the credit or the likely outcomes there.
John Pancari: Right. Good problem to have. Okay. Alright. Thank you.
Operator: Your next question comes from the line of Matt O’Connor from Deutsche Bank. Your line is open.
Matthew O’Connor: Good morning. I might have misheard the comment on the indirect auto kind of loan growth expectations for this year. Can you just repeat that, what the strategy is and what you’re seeing in the spreads there?
James Leonard: Yeah. Actually, spreads have done well and are actually off to a very solid start in 2023. We finished the year in 2022 with 7.1 billion of production, if you take auto as well as the RV, marine and specialty business combined. So that fixed rate consumer secured loan category. Our expectation for 2023 for that asset class is to be down to about 6 billion or so. So, loan balances in that caption, we would expect to be down. However, yields, we expect to improve 100 basis points from the fourth quarter 2022 levels to fourth quarter 2023 levels. So, it is a nice accelerator to the earlier question around how are you able to deliver both NII growth and NIM expansion. That certainly is a helpful driver.
Matthew O’Connor: Got it. And then just separately on the capital level, we’re seeing some divergence in targeted capital out there. Obviously, there’s like upward pressure at the biggest banks, not really relevant to you. But then some of your peers are targeting closer to 10%. And I’m certainly on board with 9%, seeming very high. But I’m wondering, is there any kind of behind the scenes pressure whether it’s rating agencies or regulators to just hold a little bit more, given some of the macro uncertainty or anything else that we’re not seeing?
James Leonard: Yeah. Great question, Matt. Thanks for asking. I would say that as this environment unfolds, it really is, to your point, going to create differentiation in both performance execution and overall balance sheet positioning. We’ve, I think, for a number of quarters and years now been discussing how cautious our outlook is. And that has really informed what we’re willing to do from a credit risk appetite perspective. So, the capital levels ultimately are a factor of the credit profile of what’s on the sheet as well as the reserve levels that we have. So, the CET1 level at 925 and an ACL level of 198 creates a very sufficient loss absorption capacity. And given our SCB level is the at the minimum, I think external factors or forces would say that we’re very well-positioned from a credit profile perspective as well as from a loss absorption capacity. So, we feel good about that.
Matthew O’Connor: Okay. Thank you very much.
