Bryan Jordan: Well right now I think you know as I tried to mention study articulate some of the growth is just going to be natural in the fund up of some of these construction loans as projects get completed and these are projects that Susan has described continue to be on track and continue to look good. So that will drive some of it. In the middle of this quarter it started to feel a little more like really in the back half this board started to feel like I’m starting to slow down in customer demand customer activity. So it does feel like things will be a bit slower. But I do think there’s opportunities to continue to selectively add relationships and credits and a lot of euphemisms are out there about the RWA diets and things like that.
We’re not in that mode. We do think that we can use our balance sheet to support customers and communities and it’s one of the benefits of having a strong capital base and being in a position to compete effectively for new relationships when we see, as Susan described, generational opportunities or otherwise to strengthen our customer pool across the entire franchise we serve.
Jon Arfstrom: Okay. And just somewhat related, I know you were asked this at Investor Day, but the balance sheet growth expectations at your size, it feels like you have a couple year runway and maybe you think about $100 billion in asset threshold later, but any limits on your balance sheet growth in the near term?
Bryan Jordan: No real short term limits. I think we’ve got a few years of runway and if necessary we can tread water. So we understand where that bright line is and we’re going to be very intentional about not inadvertently stumbling over that threshold. So until we get greater clarity about what that regulatory landscape looks like, we will do all we can to grow the balance sheet and at the same time not inadvertently stumble over it. But we think we’ve got a few years. It’s not an immediate concern in the near term.
Jon Arfstrom: Okay, good. Just a small one too. One of the numbers that you flagged was the 19,000 new checking accounts as part of the deposit campaign. Is that a material number to you? I know it’s just a quarterly number and what drove that and is that repeatable?
Bryan Jordan: Well, it’s an important number because it’s 19,000 new relationships. It probably compares to a base of around 900,000 customer relationships. So it’s not an insignificant number. We in any given quarter will lose a few as well. But it is important to note that our bankers are out there front footed, that they’re acquiring customer relationships in the marketplace across the entire footprint. And as I said earlier in this call, clearly it’s not just about that first account. It is we want to build a relationship. I mentioned the tenure of our customer relationships. We want to broaden and deepen those relationships. So I guess it’s what’s the old proverb about every journey starts with the first step. I mean it’s that first account and then we broaden and deepen from there is our goal.
Hope Dmuchowski: Jon, this is Hope. The other reason that we’ve called that out is it shows that we’re growing our deposit one client at a time. We’re not out there buying big municipal funding. It’s not for group deposits. We’re truly acquiring clients and that’s why our deposits are growing. I know others have flat deposits for deposit groups, but they’re talking about CDs. They’re talking about big chunks of money. We are doing it one client at a time. And because we believe the way that our franchise will excel and succeed is to bring these clients in with their first product and then sell them and make them long, deep relationships that are with us for 5, 10, 15, 20 years.
Jon Arfstrom: Yes, right. Yes, makes sense. Okay. Thank you very much.
Operator: Thank you. We now have a question from Timur Braziler of Wells Fargo Securities. Your line’s open, Timur.
John Rowe: Hi, this is John Rowe. I’m for Timur. Just kind of a longer term question about your CET1, your long term CET1 target in the 9.5% to 10.5% range. I guess, has there been any preliminary work done on what that could move to, if at all, as if you were to cross that hundred billion mark or does that already factor into the range provided and just how that would maybe impact your long-term capital return plans?
Bryan Jordan: Yes, we have done some very preliminary work. But given the sort of state of flux of the Basel III proposals and how it impacts the various tiers above the $100 billion threshold, we haven’t really factored that into our long-term goals at this point. And if in fact we do something that puts us above that $100 billion threshold, whether it’s through organic growth or otherwise, we’ll update it at that point.
John Rowe: Okay. Thanks. And then just one clarification question on the expense guidance. Does the guidance for the full year assume that the FDIC special assessment fits in 4Q or has that not been included yet?
Hope Dmuchowski: No, we don’t have that in expenses. We have that as an adjusted item. It is in our capital forecast, but for the expense guidance, we’re excluding that as an adjusted item.
John Rowe: Okay, great. That’s helpful. Okay, that’s all that I had. Thank you very much.
Bryan Jordan: Thank you.
Operator: Thank you. As we have no further questions, I’d like to hand it back to Bryan Jordan for any final remarks.
Bryan Jordan: Thank you, Frida. Thank you all for taking time to join us this morning. We appreciate your time, attention, and questions. Please reach out if there’s any additional information that you need from us. I hope everyone has a great day.
Operator: Thank you all for joining. I can confirm that does conclude today’s call. Please have a lovely rest of your day and you may now disconnect your line.
