Matt Scurlock: We’re at a little bit of a hard time here, Stephen. So if I answered the wrong question, ask the right question, I’ll try to answer that. So, we think about with a normalized through-cycle provision of, call it, 40 basis points of loans, excluding mortgage finance. We need to push PPNR to average assets from the $133 million we delivered this quarter to closer to $165 million to $170 million, which is another $20 million or so of PPNR each quarter on the same size balance sheet to start to bring that 1/1 into site. To Ron’s earlier comments, we think the breadth of our platform gives us a variety of paths to get there, which would include continued expansion of fee income, continued realization of the structural efficiencies enacted in April of this year.
I think as we move into next year, we’ll get more specific on the relevant components that should come together to drive that outcome in ’25. I think that’s what drives our confidence is that there are a wide range of options supported by sector-leading capital and liquidity that continue the targeting.
Stephen Scouten: Okay. Great. That’s really helpful. And maybe just last thing for me. Any update on — I think it was around $130 million in legacy loans, maybe that we’re still hanging around that — maybe weren’t as high quality as what you put on over the last few years. And did that drive any of the increase in the criticized assets?
Matt Scurlock: Yes, great question. So when we started the journey, the number was just north of $200 million. It’s now down to $100 million. About $30 million of that has been driven through charge-offs, including the charge of line this quarter. The remainder has been driven by maturity restructure refinance out of here. That did not drive the pickup in special mention credits this quarter. That was largely driven by C&I commercial real estate clients that are consistent with the go-forward strategy. And as we mentioned in our commentary, it was likely the third quarter of last year that we started to indicate we expected early stage migration in commercial real estate to begin in the middle of this year. So, we’re not surprised to see that, and we are quite confident both in our client selection as well as the underwriting characteristics that support those credits.
Operator: Thank you. We’ll now take our next question from Brady Gailey from KBW. Brady, your line is now open. Please go ahead.
Brady Gailey: Good morning, guys. I wanted to ask again about investment banking and trading. As I look at that line item and the growth has just been incredible over the last, it went from 8 million to 12 million to 19 million now over 27 million in the second quarter. Maybe when you take a step back and look at that business, what do you think is the right goal when it comes to annualized revenue? I mean, if you annualized 2Q, you did over a 100 million of revenue there, what’s the potential for that business over time?
Rob Holmes: Yes, look, I think the guidance was 10%. We’ll stick with that guidance for now, but just kind of talk a little bit about that. Brady, I just want to expand just real briefly on why we’re so confident in that business. First, this quarter is another great quarter at first for the investment bank. We are our first IPO, our first convertible bond trade. We closed our first sell-side M&A advisory fee. We launched TS and the funds management vertical. We were originating our first warehouse to securitization facility. We onboarded our first gestation balances, and we settled the first pool trade. So, there’s just — there continues to be a lot of firsts coming out of the ground for a platform that we’ve already incurred the expense on.
