Betsy Graseck: Yes. That was going to be one of my follow-ups, just trying to understand Ascentium and the dynamic and the driver that it is for you. And I guess the underlying question here is, is it — what’s the average size of this loan, an Ascension loan? Is it more of a small business size or medium, or maybe you can give us some color around that.
John Turner: Yes. It is a small business. It’s loans originated on equipment that is, as I said, business essential. So, the thesis is that that business owner is likely to pay that loan first because he has to — he or she has to have the equipment to operate the business. The average size of the loan is about $75,000 and the term would be 3 to 4 years on average.
Betsy Graseck: Okay, great. And then, just lastly, a follow-up on the funding question that came up earlier. I mean, we’re hearing from others that borrowing from federal home loan banks is interesting, even though the base rate sticker price might look a little higher. You obviously get some dividend back from the swap you also get the fact that you don’t have to pay the FDIC. So, I’m just wondering is it at all attractive to you at some point to lean in more there or not?
David Turner: Well, I think we’ll need to evaluate with that closer when we get to the point where we need it. We still have opportunities. We’ve had a $2 billion to $3 billion worth of corporate deposits that have moved off our balance sheet to seek higher rates that we weren’t willing to pay. Those are our customers. We own their — still have their operating account. They just moved their excess cash elsewhere. So, there’s an opportunity to go back to those customers first before we need to seek other wholesale funding. But I think we have all avenues. We have term debt too that can help us with the FDIC as well. We’ll just have to evaluate the total cost of all of our opportunities at that time, which I said earlier is really going to be in the second half of the year.
Betsy Graseck: Right. You haven’t needed that at this stage. Got it. Thanks so much. I appreciate it.
Operator: Our next question comes from the line of Stephen Scouten with Piper Sandler.
Stephen Scouten: So, it’s hard to pick apart anything in this quarter, results were fantastic. I guess, the one question I get from people is, as we start to see maybe some normalization in credit is how do you really highlight for folks how much different your franchise is today versus pre-cycle? I know you’ve laid some of that out in mid-quarter presentations, the shift to investment grade and so forth. But how would you combat that pushback from some folks?
John Turner: I think balance and diversity is the first thing I would point to when you look at pre — Great Recession our balance sheet, whether it be on the right side or the left side, assets or liabilities, we had concentrations in certain asset classes, and we were very dependent on interest-bearing deposits for funding. If you look at the reshaping of our balance sheet over time, our liability side of our balance sheet, I think, is really strong and provides as we’ve talked about, to this point, foundation for our outperformance, and we expect that will continue. On the asset side of the balance sheet, we have only — less than 10% of our outstandings are in investor real estate. That’s down significantly from pre-crisis levels.
And we also, I think, have been very — very committed to concentration in risk management. We have a very active and ongoing credit risk management process, which we believe will produce much better results than we had previously delivered. We’re committed to consistent sustainable long-term performance, and that requires that we manage credit risk well. At the end of the day, I know we’ve got to deliver, and we intend to do that, but we think we’re well positioned.
