Jamie Gregory: And to circle back to the NIB question, as I mentioned, there’s a lot of uncertainty in the outlook, but within products, I would argue that the uncertainty increases. As an industry, we’ve seen a significant trend of clients taking advantage of rates and switching out of DDA, we expect that to continue in 2023. And that’s embedded in our outlook. It’s embedded in our beta assumptions through the cycle betas. But we’re also expecting to see continued strong client growth in DDA that will serve to offset that mix shift, I just described. So, how those puts and takes play out in 2023 is uncertain. But our current estimate is they will fare pretty well offset each other.
Jared Shaw: Okay, thanks. And then, I guess just for my follow-up, looking at the expenses guide, it’s a pretty wide range. And you talked about being able to be flexible there, I guess, with the backdrop that there are some increases in fixed expenses, like you said, with health care and cost of living and FDIC, what are those levers where can we see expense growth moderate if the overall growth isn’t there?
Jamie Gregory: When you look at our expense outlook first to kind of want to step back and kind of give components of it, we have core operating expense increases. So, you can think about things like merit, and just normal inflationary pressures in third-party spend, things like that. That’s about 30% to 40% of our NIE increase year-over-year, when you look at our growth initiatives, those larger ones are CIB and Maast, that’s about 40% to 50% of our NIE increase year-over-year. And then, we have the environmental costs, like the FDIC increase, that are about 20% of the increase year-over-year. So, that kind of gives you a breakdown on where the expense increases are coming from. But to your question around, where’s the flexibility, the first place I would point is on variable compensation.
So, in a scenario where revenues are lower, it is likely that variable compensation will also be lower, and that’s automatic, it happens naturally, and that’s about 15% of our expense base. Second, in a slower environment, we have the ability to spend at a slower pace on some of our growth initiatives. And then, third, we have the largest expense categories. And so, that’s personnel, that’s third-party spend, and that’s real estate. And so, as you’ve seen with us in the past, through the Synovus Forward initiatives, we can always go back and assess opportunities in those areas to reduce expenses.
Jared Shaw: Great, thanks.
Operator: Thank you. Our next question comes from the line of Brad Milsaps of Piper Sandler. Your line is open. Please go ahead.
Brad Milsaps: Hey, good morning.
Jamie Gregory: Good morning, Brad.
Kevin Blair: Good morning, Brad.
Brad Milsaps: Thanks for taking my questions. Jamie, I’m just kind of curious on to extend the funding conversation, how much can the bond book sort of help you out to the extent you’d like to do that in case, deposit growth does fall short of your kind of loan growth targets, just want to think about, whether you plan to shrink that or kind of what the outlook might be?
Jamie Gregory: Our outlook right now for the securities book is for relative stability. But Kevin mentioned that we have over $9 billion in contingent liquidity available to us, and that includes the unencumbered securities in the securities portfolio. So, if I were to shrink the portfolio by $500 million and get the cash from shrinking it, or if I was to repo securities at 100%, I could get the 500 million that way. So, it’s a liquidity-neutral portfolio, just given the quality of the securities that we invest in. So, when we think about that, the liquidity is there as it is, and so our management of that book is a liquidity play. It’s also an asset sensitivity play, because investing in those securities is fairly similar to receiving fixed except for you get a nominal spread. And so, that’s philosophically how we think about it. And we expect as I said, relative stability in that portfolio as we go through ’23.
Brad Milsaps: Got it, thank you. And as my follow-up, you mentioned in your comments, opportunities around fixed rate asset repricing I think in the deck, 38% of the loan book is fixed. Are there any larger pieces coming up that that reprice, can you kind of give us a sense of what you might pick up and to the extent that the swap books would have offset any fixed asset repricing this year just kind of wanted to get a sense of kind of what you think the opportunities there in terms of, kind of fixed rate asset repricing this year?
Jamie Gregory: Yes, when you look at the fixed rate assets on the portfolio, we have securities portfolio, $11 billion book value at just over 2% yield, that prepayments on that are slow, maybe around $75 million a month. And so, that’ll be kind of a little bit of a tailwind, but not as material. I mean, the fourth, the jump in the fourth quarter was pretty strong, and we wouldn’t expect to see increases like that, as we go forward. Our residential mortgage portfolio, a similar duration as our securities portfolio around $5 billion and you look at that yield in the mid fees. So, as that pays off, that’ll definitely be accretive and then we have kind of other fixed rate assets that are approaching or right at $12 billion. And that those are — there are opportunities for increases there.
Those are not as a material as far as increases as the other fixed rate assets as the mortgages. The hedge portfolio is a meaningful tailwind, and so you can see in the appendix when we put the hedge maturities in there, you can see them in the second quarter, we have a billion maturing. And you can see the jump up and the remaining hedge yield after those maturities, those maturities in the second quarter will be about seven basis points accretive to the margin going forward, just a second quarter billion. And so, we will see a tailwind from that, that benefit will happen in the third quarter and beyond, not in the second quarter itself, but that’s how we think about those fixed rates, and we do believe that the opportunity is pretty material as we go through and have maturities and pay offs and pay downs.
