Kevin Blair: Stephen, it’s a great point to Jamie’s point, there’s so many variables that go into determining what the terminal level is going to be with non-interest-bearing. If you look at our consumer operating accounts, the average balance declined about 9% quarter-on-quarter and that puts it back at about 10% higher than where it was prior to COVID. And if you think about those balances on an inflation adjusted basis, it would lead you to believe that we are largely back to where we were pre-COVID. On the commercial side, we saw about a 7% decline quarter-on-quarter in average balance, but they are still about 30% higher than they were pre-COVID. So you can look at that in two different ways. Number one, I do believe that we have been increasing the average size of our deposits in commercial just based on our middle market and CIB strategy.
So the production that we have had since COVID has brought on larger deposits. So I would expect that the average deposit to increase. Two, I think, our clients are carrying extra cash, especially as we enter uncertainty in this economic environment, so some of that will stick. But three, it would lead you to believe there’s probably still a little excess cash that’s seen on our commercial operating account balances and you could continue to see some diminishment there. And that’s why, I think, Jamie, when he went through our analysis for the rest of the year, we would expect there to be a little more decline in the percentage of total deposits in NIB.
Stephen Scouten: Got it. That’s really good color, Kevin. Appreciate that. And then, I guess, maybe just a high level question for you guys, as you think about your business, how have things changed maybe at a high level, if there’s one or two things you could highlight since February? I mean, obviously, we know there’s tons of funding pressure in sustaining your clients is different, but we get all these questions about regional banks won’t be able to make any money. The whole business model is dead. Can you kind of give us some color on why that’s not true and kind of what has changed or what hasn’t?
Kevin Blair: Well, look, I will tell you what hasn’t changed is our value proposition to our clients, and Stephen, when you go back to last quarter when we talk about being recognized by J.D. Power as being the number one bank in the Southeast for client service and trust. I think it gets back to the heart of why clients choose banks and the primacy that we bring to the table. They want folks that provide great service, and they want advice and we are going to continue to provide that. I think what gets lost in all of this is what’s happening today is just a contraction in margin, and unfortunately, in our business, we are not like manufacturing. When we get an increased cost for our cost of goods, we can’t just pass that on to the clients, a lot of our loans are already on the balance sheet.
So having a little bit of margin contraction is not something that’s new to this industry. It’s been happening over the last really 20 years. And so I don’t think there’s anything out of the ordinary, I don’t think regional banks are experiencing any greater margin contraction, obviously, the big banks have a little bit of an advantage as it relates to scale and funding. But I think when we get through this next quarter, as Jamie just talked about and margins stabilize, we are right back to where we started, which is who’s going to win market share, who’s going to grow, it’s those banks that are providing the best level service, they are providing the client experience and are winning market share. I think we were doing that before.
