Clarke Starnes: Yes, Gerard, this is Clark. We were very pleased in the quarter. To your point, we did see our total CRE, NPLs go down, and that was driven by deliberate actions we took to continue to work through, the stressed exposure in the CRE office. We actually reduced CRE office $222 million or 4.5% for the quarter, while addressing about $230 million worth of maturity. So as we’ve said before, we’re not going to kick the can down the road. So we’re trying to be very intentional about recognizing where we have exposure and going ahead and dealing with that. And that’s what created the higher losses for the quarter, but the trade-off was lower NPLs. To your point, we also feel very good about our reserves. Our office reserves were increased to 9.3%.
And also for the stressed more institutional style, we’re nearly — we’re about 11.8%. So we’re well reserved. I would say the other CRE segments are holding up really well. I know there’s a lot of talk about multifamily. I’d say for us, what we see there is mostly a migration to the watchlist, but not to NPL or losses yet. And we’re working with those borrowers and we’re quite pleased that most sponsors are coming in and addressing, resizing if necessary, interest reserves, or other structural ways to keep those performing. So we feel good about the overall CRE book and our trajectory right now.
Gerard Cassidy: Thank you. I appreciate it.
Operator: And our final question today comes from Vivek Juneja from JPMorgan. Please go ahead with your question.
Vivek Juneja: Thanks. Hi, Bill. Hi, Mike. A couple of quick questions. One is the balance sheet restructuring that you’re talking about. Any sense of timing in terms of how long is it — do you expect you get done by assuming you close on June 1? Do you think you’d get done by end of this year or you think it ends — heads over into ’25? Are there any sort of tax reasons why you have any time limitations?
Bill Rogers: Maybe let me hit that [button] (ph), so I mean the spirit would be simultaneous. So that would be — that would be the spirit in terms of you know, how we would — how we would potentially restructure.
Vivek Juneja: Okay. And then, as you restructure Bill, are you thinking you’ll replace the securities with other securities? Are you — I know you’re only going to get it to — you want to get earnings to neutral. Where are you at this point thinking, are you willing to go more? What are you thinking in terms of ongoing run-rate of securities as a proportion of earning assets?
Mike Maguire: Yes. Hey, Vivek, it’s Mike. I’ll take it. In February, what we laid out was sort of an even redeployment into cash and securities. I think even that I think was hypothetical as you can imagine, we are keeping an eye on the market and thinking about the trade-offs around different, whether it’d be mortgages or treasuries and cash. So, I think we’ll get that mix right and we’ll be guided on not just earnings. Obviously, we have an objective of shortening the balance sheet and improving our, you know our readiness around what we think will be more rigorous liquidity requirements over time. And so that’s actually one of the great benefits of this transaction or this collection of potential transactions is, it’s not just about capital. This really does move us forward more broadly.
Vivek Juneja: Okay. All right. Thank you.
Operator: And ladies and gentlemen, with that, we’ll be concluding today’s question-and-answer session. I’d like to turn the floor back over to management for any closing remarks.
Brad Milsaps: Okay. Thank you, Jamie. That completes our earnings call. If you have any additional questions, please feel free-to reach out to the Investor Relations team. Thank you for your interest in Truist. We hope you have a great day. Jamie, you may now disconnect the call.
Operator: Ladies and gentlemen, that does conclude today’s conference call. We thank you for attending. You may now disconnect your lines.
