Matt O’Connor: Okay. And then just to summarize, I guess, at this point, with the changes that you made and the refunds like how would you frame your approach to service charges? Are you kind of in in the middle terms of being conservative or more on the conservative side? How would you frame the overdraft and the fees overall, approach?
Bill Rogers: Yes, I think we’ve got a great product in Truist One and that really reflects where we’re going. And so we’re adding almost all of our new clients to Truist One. I highlighted some of the benefits, some of the things we’re doing that. And then migrating some of our back book to Truist One. So, I don’t know how to characterize conservative work, but I do know this is purposeful. And I think we’ve got an incredibly competitive product that has all the right mixes and that it’s really, really client responsive, but it’s also contributed to our growth. So, while service charges as an overall, as Mike talked, will continue to click down, we’re balancing that with growth, adding new clients, expanding relationships. And I think that’s sort of the right mix as we think going forward. Those things won’t align perfectly quarter-to-quarter. But long-term, I think we’re on a really, really good long-term shareholder value building path.
Matt O’Connor: Okay. Thank you.
Bill Rogers: Thanks Matt.
Operator: Our next question will come from Gerard Cassidy with RBC Capital Markets. You may now go ahead.
Gerard Cassidy: Thank you. Good morning Bill. Good morning Mike.
Bill Rogers: Hi Gerard.
Gerard Cassidy: Bill, can you share with us – when you think about the game plan that you and your peers have had to use post financial crisis in this low interest rate environment, of 0 to 25 basis points, there was a blip in 2018, of course. But now we’re in this new rate environment that was really pre-financial crisis, what changes are you – if you are having some changes, what changes are you implementing to win new business in this new rate environment since it’s quite a bit different than it was three or four years ago with both commercial and consumer customers, loans, deposits, et cetera?
Bill Rogers: Yes, Gerard. I’m unfortunately maybe of the age to have operated in this environment in the past.
Gerard Cassidy: Same here.
Bill Rogers: Yes, exactly. So, I have some familiarity. This is not unprecedented or new territory. And I think sort of a couple of things. It first starts with – and you highlighted, I mean, the cost of funding is not free. So, the first part starts with all the things we’ve been talking about, about optimization and demanding more full relationships from our clients and all the things that go along with that. But you have to offer competitive products and capabilities and be leading. And so for us, I highlighted a lot of the metrics, things like net new on consumer side. So we’ve got a product like Truist One that’s really responsive. We’re winning the battle with the competitive environment that clients want more than rate paid.
You’ve got – your paid is not the only option. You got to offer more product and more capabilities. So I think we’re winning on that front. And then on the commercial and corporate side same thing. We’re in the advice business. And if we start that we’re in the advice business versus we’re in the rate business, we start with a really good framework. So this whole concept of business life cycle, advisory where we are. I highlighted the fact that we’re winning on left lead relationships, so we’re becoming more important to our clients. We’re becoming the go-to with our clients. We’re in the first call perspective where you want to be. So I think the changes are just this relevance is so much more important to start with the market share that we enjoy in our core markets, 20%, all the ubiquity and efficiency that comes with that.
So this is not new work, but it’s a double down on you have to be really good at the job. You have to be really good at advice. You have to really be good in product and capability and the – which, by the way, I think that’s going to really work well for Truist. The new definition of winning, I think, fits perfectly into our strategy going forward.
Gerard Cassidy: I appreciate those insights, Bill. And then on credit, maybe this is best answered by Clarke. You guys talked about tightening up, I think, the credit standards a bit. But I’m more interested – we’re not worried about you folks. You guys have a good track record of credit underwriting. But can you make any comments about what others might have been doing over the last two or three years, whether it’s non-depositories or depositories in lending, and those may be aggressive actions, if there were any? How that could impact your customers? Who – again, you’ve underwritten fine but maybe they’ve done something crazy with somebody else, which then the second derivative, you guys get impacted. But Clarke, any color on that, especially compared to prior cycles?
Clarke Starnes: Yes. Gerard, it’s a great question. I know we’ve – my peers and I have talked about this. But I’d say, in general, particularly since the Great Recession, I think the discipline in the industry overall has been really good. And I think the fundamental credit approach despite the low rate environment, I think the industry in general is in a much better place than we were pre-financial crisis, and even the non-bank players generally have done a good job there. So I don’t think there’s – we don’t necessarily see a big shoe to drop. I think the biggest impact we’re trying to evaluate through as you shift from a long secular low rate environment to where we are now is, how economic some of those deals were even if you thought your underwriting well, how sustainable will all that be. And we feel really good about where we are. And I’d say generally, the industry as well.
Gerard Cassidy: Thank you.
Operator: We will now take our final question from Ryan Kenny with Morgan Stanley. You may now go ahead.
Ryan Kenny: Hi. Good morning. So I just want to clarify something on the earlier questions on the NII path. So we heard the comment around not expecting any significant loan portfolio sales from here. But can you give us an update on your current approach to managing the securities portfolio? And specifically, what are your views on potentially repositioning parts of the securities portfolio, especially if more capital is freed up from potential future exits or optionality?
Mike Maguire: Yes. Good morning, Ryan, on the security side, we’ve – on average, we see $2.5 billion to $3 billion of just cash flow and maturities from the portfolio. I think you should expect that to continue in terms of sort of just some of the drag on the earning asset base. As far as the repositioning, I don’t think there’s any new news here. I mean, obviously, long rates of sort of been on the rise here. And so we’ve been tracking the unrealized losses, and we have some incremental disclosure kind of on our current position and the burn down on our capital slide. I think we’re constantly evaluating potential strategies and the likes as it relates to the bond portfolio, but nothing new. We did – I’d just say, as we think about this new world we’re living in, where these unrealized losses, at least the securities AOCI is a factor in terms of capital, in an effort to manage that potential volatility in the future, we did add some pay-fixed hedges during the third quarter, which we’ll see some benefit from to the extent that kind of rates hang where they are or worsen a bit.
