Brody Preston: I wanted to start just maybe on credit. I just wanted to better understand the charge-offs within the SVB book. I think last quarter you had one that you had called out and then you had a couple others that you kind of cleaned up. These seem to be clustered in the innovation portfolio. I guess I wanted to ask was this more of a cleanup quarter as well? And I say that just because the charge off rate on that portfolio seems to be or this quarter at least was running close to what SVB experienced back during the GFC. So I just assumed that there was some cleanup charge offs there that you had marks again.
Frank Holding: No, I wouldn’t characterize it that way. Again, approximately 56 million of the 100 was reserved for, so we did anticipate the charge offs. They were just — we guided the 35 to 45, charge offs came in higher than we expected at 53 basis points for the quarter. But I would not characterize it as this was a cleanup quarter or that last quarter was. I think we expect the charge offs to remain elevated at least through the first half of next year and consistent with these numbers and then we’ll see what happens in the second half. Again, we’re not giving guidance today going forward. But no I would not characterize it as a cleanup..
Brody Preston: Do you happen to know what the mark you have against the innovation book is?
Frank Holding: We have a four — we have — our allowance on the innovation portfolio is 4.42%. We also have a purchase accounting discount of 5.09%. So that’s a 9.51% loss absorbing capacity, which gives us 2.1 times coverage on that portfolio, which we believe is conservative and strong.
Brody Preston: And then I just wanted to ask one last one on the non-interest bearing deposit trends. It looked like that this should be — the book started to stabilize a bit but still came down, but the NIBs were quite a bit stronger than I guess I would’ve originally thought just relative to the guidance you’d given before. So I wanted to ask, was there good NIB growth — was there NIB growth in the commercial or the consumer banks at all that kind of helped offset some of the cash flow — the cash outflows from the [SVB] client base?
Frank Holding: Well, if you look just from last quarter, non-interest bearing deposits actually declined but they did not decline at the rate we anticipated. So we did have a decline in those from — and it was about $1.4 billion. But we had projected a decline that was a little larger, so that’s why we would’ve — we might have come up with a lower mix of non-interest bearing to total deposits. And we did drop from 30% to 28% in the quarter, 32% to 30% we expect to drop to that 28% in the fourth quarter if our deposit projections hold.
Brody Preston: And do you think that 28% is getting close to a bottom?
Frank Holding: I think we have — there’s more room for it to fall given that especially if rates are higher for longer potentially into the mid 20s. Tom, you want to emphasize that?
Tom Eklund: I was just going to mention, I mean, obviously, it’s a priority as we go to market to gather these non-interest bearing deposits. I think as you look at the third quarter and in the core bank with actually really strong, if you sort of neutralize for the impact you typically see as corporates make cash tax payments in September. So overall, I think the underlying trends look pretty good.
