Operator: Thank you. And we’ll take our next question from Ebrahim Poonawala with Bank of America.
Ebrahim Poonawala: Hey, good morning. I guess maybe just following up on deposits to make sure we got the message right. There’s about $5 billion in crypto deposits that you expect to exit the balance sheet. Beyond that, is the message that you don’t see any other higher cost deposits in any meaningful size left and net-net, you believe you can offset the $5 billion. So we should see net deposit growth as we think about 1Q and beyond?
Stephen Wyremski: I think it would be difficult for us, given this deposit environment to promise that would be up in traditional deposits, although we’re hopeful that we will be. You know, at the $3 billion to $5 billion in digital, we do think that will be relatively flat in the rest of our deposit base. There – we plan to proceed for growth for sure, as Joe talked about, and we do anticipate that we should have growth, but it’s difficult to promise.
Ebrahim Poonawala: Understood. And Eric, just Steve’s point around 35% to 36% NIB, that’s where you ended, I think, fourth quarter. Is it safe to say that NIB is kind of leveling off here around $31 billion, give or take?
Eric Howell: I think it’s back to its normal range. Actually, 35%, 36% is probably at the high end you know, where we traditionally have been. I mean, we’re usually in the 32% to 34% range, maybe even a little bit lower.
Joseph DePaolo: We’ve been…
Eric Howell: We’ve been as low as 24%, net. But – so I think we’ll be in that 30% to 35% range of DDA to overall deposits as we look forward.
Ebrahim Poonawala: Understood. And then on lending, I think you mentioned loan growth balance is probably going to be negative. How much more of capital call line participations are yet there that could leave – exit the balance sheet?
Eric Howell: Yeah. We have a fair amount of passive participations there. So we could – we’re going to give a fairly broad range, but we could be down in lines anywhere from $5 billion to $10 billion. And essentially, if you look at what we’ve done over the last couple of years, we’ve grown digital deposits and we’ve grown fund banking loans. So we’re shrinking now our digital deposits, and we’re going to shrink our fund banking loans and get back and rightsize the balance sheet a bit.
Ebrahim Poonawala: Understood. And one last question. So it seems like the balance sheet is going to be shrinking. Clearly, you feel good about capital based on the dividend hike. Is buyback an option or beyond the dividend, any increase in capital do you expect just to build capital right now?
Eric Howell: Well, you know, we do anticipate that we’re going to have growth. We could see growth this quarter, quite frankly. It’s going to be tough, right, but it’s possible. And we certainly could see growth if we look into the third and fourth quarter of this year. So we’ve got – we continue to put the seeds and plant those seeds for growth, and we’d rather hold on to our capital to support that growth. All that being said, buybacks are certainly – we have the ability to buy back, and we’ll certainly look at that if that growth doesn’t materialize.
Ebrahim Poonawala: Got it. Thanks for taking my questions.
Eric Howell: Thank you.
Operator: We’ll take our next question from Manan Gosalia with Morgan Stanley.
Manan Gosalia: Hi, good morning.
Joseph DePaolo: Good morning.
Manan Gosalia: Just given all the moving pieces here between digital outflows and the seasonality of deposits and some of the nice quarter-to-date growth you have in deposits. Is annualizing the 4Q EPS a fair way to think about earnings as we go into 2023? Or are there more puts and takes there?
