So we know what our funding is. So I think we’re in a very unique flexible position on the balance sheet. And this has been a game that has played over 5 years, not just the last 5 months and we’ve been very careful and I think we’re in the right position in order to close that gap and get incremental profitability to our shareholders.
Michael Perito: Agreed, that’s all very helpful. And then I wanted to ask a question or 2 about the APEX 2030. My hunch is — and please correct me if I’m wrong; but my hunch is there’s going to be quite a bit of ramp in kind of the fee contribution to hit these targets. Do you have a sense of what that is? Like by the time you get to $1 billion plus of revenue are fees over half of the revenue pool and have you guys — are you guys willing to kind of provide any guardrails around that? And is most of that fee ramp opportunity off-balance sheet deposit earnings and kind of credit-as-a-service gain-on-sale-type [ph] earnings that are going to keep the balance sheet sub-$10 billion? And is there anything else we should be thinking of as you guys ramp the noninterest income portion to hit that $1 billion number?
Damian Kozlowski: Yes. So we’ll be saying a lot more. There’s a lot of work. So we’ve decided which areas to play. We’ve given some very general guidance in our investor presentation that we redid and put on our website and we’ll be giving much more detail. Now in the near term, we have another $3 billion of room of credit on our balance sheet. So even though our fees are growing very quickly, we will continue to get probably higher growth on the on the interest income side and then it will stop because we won’t have any more balance sheet left. And then you’ll get a situation where you’ll have a stabilization of that, of that interest income, generally, much slower growth and then you’ll get it all in fees. So it’s going to come from and you’re exactly right from credit sponsorship but it’s going to be a mix of a very a diverse mix of different type of programs, some of them facilitated by the balance sheet and others extremely light and underwritten assets that are sold into the market.
And we’re talking about that 1 or 2 programs. We’re talking [indiscernible] in 5 years, a diversified mix of 20, 25 programs where, in certain cases, we’re not taking any credit exposure at all. Part of our balance sheet will be for that. All the other services that we will provide will be fee-based. So if you’re talking about any of the compliance services we do today and things like transaction monitoring, some of the middle office technology services we provide those will all be fee-based. And we’ll give much more guidance as we get more clarity ourselves. All we have done is put a structure and framework together to kind of look into the future and build the model and understand what we want our bank to be within the competitive end market environment.
And we’ve done so much in the past to beat our — build our ecosystem. And we’re trying to look forward to 2030 and say, this is what our company is going to look like. And think about all the big trends that are happening right now like AI that we have to build into that vision. So we’re going to be saying a lot more. There’s a — this year is a lot of work. The area that you’re going to see real fee generation and spread generation will be in the credit sponsorship area but it will be a couple of years before you see meaningful parts of our balance sheet use for credit sponsorship or fees for other services and we’ll give you more guidance as we get through this year on what that might look like. Just a tremendous amount of resources and work will need to be done.
But the opportunity is enormous. Because of our position in banking as a service and providing this middle office technology and services, we really do have a unique opportunity to sell those for fees, broadly in financial services and to our other partners throughout the payments ecosystem. So we’re — I mean, we’re just actually calling from Miami today, where we had our senior management offsite going through all this. We are all very, very enthusiastic about the future and are really looking forward to continue to build on all the achievements we’ve made and going into a new future look that I think will be even more profitable, faster growth and much more fee-based.
Operator: [Operator Instructions] we have our next question coming from the line of Frank Schiraldi from Piper Sandler.
Frank Schiraldi: Just looking at the presentation and looking at some of the numbers here and the long-term financial target of greater than 40% ROE, 4% ROA. Obviously, some pretty impressive numbers. I guess, in terms of the long-term aspect, if you were to put a timing on it. I guess that 2030 year is when do you think you could get to those sort of numbers? Is that reasonable?
