Brendan Lawlor: Hey, this is Brendan. I’ll take that one. As you sort of noted in your question, the story of the quarter is [indiscernible]. Across all of the credit metrics, pretty much in-line with where we reported either the fourth quarter or seasonally adjusted when you think about delinquencies, looking back at first quarter of last year, we’re right in-line. And we feel really good about the position that we’re sitting in right now. If there’s the one place that everybody continues to focus on and talk about, and we’re highly focused on it ourselves is office and the commercial real estate side. But as we’ve talked about in the past, we have one of the smaller books relative to our office portfolio. And we have a decent reserve against it. So while we’re watching it and actively managing it, we feel very well protected against it at this point
Stephen Steinour : Just to add to that, thanks Brendan. We’ve reduced the office portfolio by about $500 million over the course of the last four quarters. And our largest loan is $40 million. The average is $7 million-ish. So it’s very granular, and it gets a lot of attention. And we expect it will continue to reduce throughout this year.
Jon Arfstrom: Okay, good. If I can ask one more, I’m going to violate the one-in-one follow-up, but just bigger picture, there’s been this myopic focus on the margin and net interest income. Do you guys — do you feel incrementally better or worse about that plus or minus 2% guide? Because on one hand we’re thinking about a lower margin in the very near-term and I get that, but it seems like it’s higher funding costs to fund loan growth, which seems to be at the higher end of it. So I guess, the question is with some of these new developments do you feel better or worse about that higher or lower end of the net interest income guide? I think that would help people. Thanks.
Zach Wasserman : Great question Jon. I’ll take that one. [indiscernible] two statements I would make. First is, I feel really good about the overall performance of the business. For us, it’s about executing long-term growth, long-term value creation. And Q1 set that up really well. We’ve seen confidence in loan growth accelerating, great core funding, and therefore the confidence in being within that range is very strong. At the margin, my revenue outlook is a touch lower than was the case before. But I think we’re in the range of tuning at this point, Jon, and hence, not overly parse this — somewhere in that range, typically try to land in the middle of the ranges that we’re giving.
Jon Arfstrom : Okay. All right, thank you, appreciate it.
Operator: Thank you. Next question is coming from Peter Winter from D.A. Davidson. Your line is now live.
Peter Winter: Good morning. I wanted to follow up on Jon’s question just on credit. If I look at the ACL ratio, it’s at the top end of the peers and credit is really holding in and you feel good about the economy. How are you thinking about reserving going forward? Is the plan to keep the ACL ratio fairly steady and just kind of support loan growth?
Brendan Lawlor: Peter, it’s Brendan. I’ll take a chunk of that. You’re noting the stability quarter-over-quarter, and that’s accurate. I think, as we look forward, it’s really fact specific as to how the ACL coverage will move quarter-over-quarter, as we take into account the modeling of our economic scenarios, the view of credit at that time, as well as the loan growth, as you referenced in your question. We put all of that into the mix to sort of drive out of our modeling what we believe the right level of coverage is. And so — it’s harder for us to, you know, for anybody frankly to — in this environment, to really give any strong guidance, as to which way the ACL will move, as it’s really a quarterly specific metric these days, and the way it’s run. So it’s hard for me to come out and say, well — we think it’ll do this, and we think it’ll do that.
Stephen Steinour : Okay. Peter, this is Steve. I’ll just add to that. We’ve tried to be conservative with reserves over the years. We believe we’re in that posture today and we expect to grow loans above peer this year and potentially beyond with the investments in these new businesses and regions we’ve made. And there’s still a lot of uncertainty about where rates are going to go, when they’re going to move, the geopolitical tension, the uncertainties that can spawn from elections, both ours and other countries. So we’re just trying to be conservative at this stage. Should we continue to perform at the level we are, there will be reserve recapture at some point.
Peter Winter: Okay. Thanks, Steve. Just one quick follow-up. Just that comment that you’re feeling better about loan growth. How much of the loan growth acceleration is new markets versus just core strength? And is part of that positive outlook, given the early success that you’re seeing on the new initiatives?
Zach Wasserman : This is Zach. I’ll take that one. If you look at the full year loan growth outlook that we’ve got, it’s between 3% and 5%. About 60% of that growth, we think will come from the core, and about 40% from these new organic expansion areas [Technical Difficulty]. And the mix of the overall company’s growth will be weighted toward commercial, but consumer also growing pretty well. So that’s the kind of broad answer in terms of the magnitude of them. And really, the other point is yes. The early traction is really very positive. We’re seeing customers already being acquired, loans being booked, and the pipelines across all of the five new areas of focus for the three commercial verticals, Carolinas and Texas. The pipeline cumulatively is approaching $2 billion of loans, and also very significant deposit pipeline.
