Steven Alexopoulos: I want to start on tangible book value, which was $12.93 in the quarter. In terms of a new baseline, I just wanted to confirm that we shouldn’t expect any additional charges or impairments in the first quarter beyond the $8 million restructuring charge you called out, which could further reduce tangible book value?
Alan Lane: Yes. Steve, I’ll go ahead and kick that question over to Tony. Tony?
Tony Martino: Yes. Hey, Steve. Thanks for the question. With respect to this tangible book value per share, as I indicated previously, we recorded an impairment for $1.7 billion in security sales. And that’s already embedded in there. There’s puts and takes as always with tangible book value. As Alan’s indicated a couple times, we don’t provide forward guidance. And it’s early, really early in the quarter to try to give a guide path there. But there are puts and takes, and another example is the deferred tax carry forward of $342 million that we disclosed. That’s not built into the tangible book value because we’ve taken valuation allowance for it, but it’s certainly there in terms of tax losses that are available to offset future income. So, again, it’s early. We don’t provide guidance, but appreciate the question.
Steven Alexopoulos: Okay. Thanks, Tony. And then for my follow-up, I don’t know if you guys heard the Signature call this morning, but in the Q&A session, they had a question on AML/BSA. And they indicated that for FTX it was more of a made off situation. They specifically said not an AML/BSA issue. Do you guys see this the same way as it relates to Silvergate, not an AML/BSA concern?
Alan Lane: Yes. Steve, unfortunately, I did not get a chance to listen to the Signature call, so I don’t have the context for how they referenced it. But, we’re just not going to comment at all on any kind of FTX related matters. And so, from my perspective, we should just focus on our core business and all of the things that we’re doing to help this ecosystem, and let all that other stuff kind of work its way out.
Steven Alexopoulos: Okay, fair enough. Thanks for taking my questions.
Alan Lane: You bet.
Operator: Thank you. The next question today comes from the line of David Rochester from Compass Point. Please go ahead. Your line is now open.
David Rochester: Hey. Good morning, guys. You guys had a lot of moving parts on the balance sheet in the fourth quarter that would impact the margin moving forward. And I know you don’t want to give any guidance on the NIM. But, can you just give some of the spot yields and costs at the end of 4Q for the major average balance sheet lines? I think that would be helpful. And if you happen to have the yield on the securities that you’re selling in the first quarter that you’ve already sold, that would be great as well.
Alan Lane: Yes. Good morning, Dave. I’ll kick this question over to Tony.
Tony Martino: Yes. Thanks for the question, Dave. So again, I think, with — if you look at the balance sheet, broadly speaking, given the disclosures that that we made, the cash and securities are the overwhelmingly large components of the balance sheet and the securities — the cash yields are in line with federal funds rate. With the securities, what I’ll say is, as of yearend, we were close to about 80% of the securities portfolio, being floating rate — floating rate securities. And in the first two weeks, as I indicated, we sold about $1.5 billion of what was left in the book. And I think the 80%, I mean, will trend a little bit higher. But — and so for a portfolio that’s government issued or all agency backed and primarily mortgage backed — mortgage backed and other types of securities, you probably could figure out what the yield is there in relation to the federal fund’s rate.
But, as we said, the bulk of our asset — earning assets are adjustable rate. But as we’ve also said, the makeup of the balance sheet going forward, subject to change as the year evolves. So, sorry, can’t be a little bit more clear, but, that’s about as much as we could provide at this point in time, early in the quarter.
David Rochester: Okay. I appreciate that. And then just one follow-up. Can you just talk about bigger picture, the implications of this 100% valuation allowance on the DTA? Are you guys basically saying that the outlook at least near term for profitability is more negligible or maybe you’re predicting a loss? And then, how far out does that analysis go? How far out do you guys need to look on that valuation test? Thanks.
Alan Lane: You want to just keep going, Tony?
