But I think within those guardrails, the process that we employ is really a pretty rigorous process. We look at every kind of credit sale. We look at sort of expected lifetime loss for that unique credit sale. We look at the cost to acquire within those credit sales. And we look at the pricing of those credit sales. And we very routinely will sort of ex small cells off if we feel like losses at a place again where it’s not in the customer or our reputations kind of best interest to do that business. But what we really focus on for the majority of it is, are we earning that attractive ROE that Steve talked about previously? And that’s why, quite frankly, we really focus so much on what is our expected lifetime loss versus what we assume at underwriting, because we know if we can stay within that and we use our vintage curves to sort of manage that, then we know we’re generating those high-quality returns, which our investors should really appreciate.
Sanjay Sakhrani: Okay. Thank you very much.
Operator: Thank you. Our next question comes from John Hecht with Jefferies. Your line is open.
John Hecht: Good morning, guys. Thank very much. Most of my questions have been asked. I guess, one question is maybe just a refresher. The yields moved up pretty big from Q3 to Q4. I know there are some kind of resets during the year. Maybe can you just, I guess, refresh us about the repricing mechanisms in the portfolio?
Steve McGarry: Sure, John. So pretty straightforward. Basically, half of our portfolio is tied to one month LIBOR as for portfolio is fixed rate. Borrowers have been choosing fixed rate at a much higher rate in the last two or three years of originations for all the obvious reasons. So that mix is changing slowly, but surely. The bottom line is that, we were positioned marginally asset sensitive over the last year or two, and we have benefited to a certain degree from the rise in LIBOR, which is up obviously four plus percent over the last year. So we have benefited from that somewhat. But we try and run a pretty balanced book. So we’re not really getting out over our SKUs in terms of taking interest rate risk. Our real goal is to book a nice solid NIM year in and year out. And I think we’re pretty much in that sweet spot right now.
John Hecht: Okay. Thanks. And then in terms of just thinking about capital allocation, I mean, it seems like you’re targeting a similar amount of sales in 2023 versus 2022. How do we think what that means in terms of like comparable buyback cadence in 2023 versus 2022 or other kind of facets of your capital return program?
Steve McGarry: Sure. So we’re trying to be balanced here. We want to maintain a steady program at that $3 billion mark. We do want to see slight growth in the balance sheet over time as CECL gets phased in, it is a little bit more challenging to maintain the size of the buyback program that we have in the past and we did $1.5 billion, then we did $700 plus million. Last year, Jon in his prepared remarks indicated that we have $581 million of authorization left from our Board-approved buyback. We do not expect to go back to the Board this year to acquire additional share repurchase authorization. So I think that gives you an indication of the size of the program that we’re contemplating this year, it’s probably a little bit under the $581 million.
