John Turner: I don’t think our deposit base, if anything, is a bit better than the peer group. We don’t have anything unique to us that would cause our beta to be higher than anybody else in this rising rate environment. As a matter of fact, we did happen to grow more non-interest bearing deposits during the pandemic than most of our peers and that’s being put to work. So that element of it, maybe that piece of it is a bit different. And that’s what we called for in the guidance that we’ve given you, that it would remix into interest bearing accounts. We still have a low loan deposit ratio. We still have, not wholesale funded. So, I don’t think that whatever the beta is in the industry, Regions is going to be better than that. We’re already better than that right now with a beta of 34% and the peers are at 49% on a peer median basis right now. So I just don’t think that if it’s coming to the end, then it’ll come to the end for us too.
Manan Gosalia: Got it. And then just a separate question on liquidity. Several of your peers have increased their levels of cash this quarter. How do you think about managing your liquidity ahead of any changes in the LCR rules?
David Turner: Yes, so we still have, again, a very liquid balance sheet access to that. We maintain a good cash position right now. We haven’t added to our securities book as much as some others. We think to the extent LCR comes in, we’ll be able to be compliant with that without any major changes to our structure of our balance sheet.
Manan Gosalia: Great. Thank you.
Operator: Our final question comes from a line of Gerard Cassidy with RBC. Please receive your question.
John Turner: Hey, Gerard.
Gerard Cassidy : Hey, John. Hey, David. David, can we circle back to the Shared National Credit exam? I’m curious. Obviously, it’s changed over the years, and if I recall correctly, they examined those books both in the spring and the fall, which you referenced. And we’ll get the results early in February or sometime in February. But can you share with us any color, like, what was the emphasis? Was it on leverage loans? Was it on office commercial real estate? Was there greater stress in certain markets over others? Just any elaboration would be helpful.
John Turner: Yeah. Gerard, this is John. We didn’t notice anything specific about the most recent exam. It was broad-based, both with respect to product type and business and geography.
Gerard Cassidy : Very good. And then you guys touched a little bit about the economy in your markets. You give us, obviously, the forecast you use and building out CECL reserves. What are you guys seeing down there? There’s so many cross-currents going on in the national numbers. Still, I’m assuming there’s strength. There’s employment strength. There’s business strength. Any color there would be helpful as well.
John Turner: Yes. Across the southeast, which is where 86% of our deposits are in seven southeastern states, we had Texas that goes above 90%. We’re still seeing a pretty strong economy, and seven of the eight southeastern states that we would point to, unemployment rates are at or near historical lows. Customers are still – consumers are still in a very good position. There’s plenty of work. There are routinely economic development projects, new jobs being announced across markets; Alabama, Tennessee, Georgia, Florida, Mississippi. Of course, Texas is continuing to do really well. So I’d say customer sentiment is still positive, but cautious given all the things that are going on, both the national and international geopolitical level. But customers are – businesses are still doing pretty well, and the consumer definitely is.
