Tony Martino: Yes. Thanks Alan. Yes. So Dave, as far as that valuation allowance goes, so in the near-term, I mean it’s — as I said earlier, we’ve got a deferred tax allowance or deferred tax asset balance of $342 million driven by both, the losses that we’ve incurred in the fourth quarter and some of the accrued losses that we anticipate in 2023. So, from a tax perspective, with some of those accrued losses that will be realized in €˜23, the allowance is one of those things that’s done on a year by year basis. So, at this point in time, we’ve assessed a 100% allowance, implying that there’s probably not taxable income in 2023. But beyond that, you shouldn’t read too much into it because it’s an allowance that could be reevaluated every year end.
And that valuation allowance could change every year end. So, it’s not set in stone at a 100% going forward. And from a tax perspective, as we’ve disclosed those losses are — have indefinite carry forward for federal tax purposes. And so, there’s future value there to the extent that there’s future taxable income.
Operator: The next question today comes from the line of Manan Gosalia from Morgan Stanley.
Manan Gosalia: I appreciate all the incremental color this morning. And I know you also mentioned in the slide deck that the headcount reduction will drive a $7 million to $8 million reduction in comp. I guess, as we think about the core expense number going into the back half of the year, given that you also mentioned you’re exiting from the custody and cash management businesses, what should we — how should we think about the core expense number as we exit the one-time expenses that you’re making over the next couple of quarters?
Alan Lane: I’m going to turn it over to Tony in just a second, but I want to clarify one thing. We are not exiting all of the cash management services, but just certain cash management services, and we have not yet disclosed which services those are. But, you could go back and contemplate Ben’s comments around some of the products that when you launch certain products, you make some assumption as to the customer adoption of those products, et cetera, and then as you move through time you have to reassess those. And so, — but I wouldn’t want anybody to think that we’re no longer going to provide cash management services. That is core to what we do. And the SEN, the 24/7 API enabled SEN that our customers have come to rely on will still be operational with API wires, et cetera.
And we’ll be able to provide more color as Ben mentioned, once we notify some of our key partners and our customers. We don’t want to get ahead of being able to have individual conversations with all the appropriate folks. But back to the expense question, Tony, you want to take that?
Tony Martino: So, yes, as you indicated, the guidance that we provided was a $7 million to $8 million per quarter save related to the headcount reduction. As it relates to other core expenses, as we indicated in our prepared remarks. I mean, we were intentional about saying the second half of the year because, as you can appreciate, there are a lot of embedded costs and overhang coming into the new year, a lot of the challenges in ecosystem were towards the back end of the quarter. So, as Alan had said, we’re evaluating different products and services, we’re evaluating vendor contracts, we’re evaluating all of those items that would drive core expenses. And so, at this point in time we’re not in a position yet to give further guidance. But, as you indicated we do intend to evaluate all categories and look to get to a good core expense base for the second half of the year. Thanks.
Manan Gosalia: But, is it fair to take the $33 million expense base from 3Q, remove the $7 million to $8 million, and then assume that you would move lower from there? Is that fair?
Tony Martino: It’s not so straightforward because as you may or may not know, I mean, we were increasing headcount throughout the year. And so, some of those headcount increases were in flight at the beginning of the quarter — at the beginning of the fourth quarter. So, it’s like most things, it’s not that straightforward. And there’s — there are many moving parts and there are a lot of puts and takes, as always. So, appreciate the question, but at this time, that’s about all the guidance we can give.
Manan Gosalia: Got it. And then, just a quick question on the deposit side. In the past you’ve mentioned that about 45% of your deposits come from the top 10 clients. I would assume that concentration number has gone down meaningfully. Would you have that number as of the end of the fourth quarter?
Alan Lane: Yes. Let me jump back in and kick this over to Ben. We’ll certainly disclose more detail in our 10-K as we always do when it’s filed. I’m not sure we’re ready to disclose deposit concentrations today. But, Ben can probably provide a little bit of color on our customer base. So, Ben, do you have anything to add?
Ben Reynolds: Yes. That’s right, Alan. So, I’m not sure if we’re planning on disclosing that number going forward. But, when you do look at the table that shows the number of customers by category and the corresponding deposits, you can see that they’ve gone down in every category. And so, we’re certainly mindful of concentrations, but what we’ve seen is really — as we’ve said many times before, kind of a crisis of confidence and risk off across the entire industry. So, I think from that table, you can probably see that deposits across the board in every segment are down. So, not much more we can add beyond that at this point.
Operator: The next question today comes from the line of Will Nance from Goldman Sachs.
