Terry Dolan: Yes, so maybe just kind of unpacking a little bit. We still expect Erika, that the benefit from capital accretion or earnings accretion is going to be somewhere in that 20 to 25 basis points on average. And a couple of different things to kind of keep in mind. While there’s a little more pressure on the revenue side of the equation, the things that will start to come into the equation is a lot lower merger and integration charges next year. We’ll be substantially done with that, as well as the fact that by the end of the year, we will really be at kind of full run rate from a cost synergy standpoint. So, I think that there’s a number of things just in terms of why we feel confident that that accretion level starts to accelerate or creep up from where we’re at today.
And then I think when you end up going through – John talked a little bit about the burndown being at about 25% between now and the end of the year, and that’s based upon market implied. But also keep in mind, as we have said is, we have put into place some hedging strategies to protect us from the upside risk that might exist if rates were to move up. So, we feel pretty good about where that is going to come in. And then the rest of it is really tied to risk-weighted asset actions, many of which I ended up talking about. And again, we have a pretty confident game plan with respect to our ability to reduce risk-weighted assets in order to be able to achieve the targets that we need to hit.
Erika Najarian: Let me just ask it another way again, just because it feels like some of the good stuff that’s going on in the company is being ignored because of this capital question regarding Category II. Based on your outlook and under a reasonable range of scenario for the economy, do you think you could get to 8.5% to 9% fully loaded CET1 by 4Q ‘24?
Terry Dolan: Yes, absolutely.
Erika Najarian: Thank you.
Operator: And next, we can go to John McDonald with Autonomous Research. Please go ahead.
John McDonald: Hi. Yes, thanks, Terry. Yes, just one last follow-up on that walk starting from the 6.9%, getting to 8.5% to 9%. So, is that the idea that the AOCI is kind of like a 200, 210 basis point drag today and that’ll shrink to, in your number, something like 150 or that kind of drag by the end of next year?
Terry Dolan: Yes.
John McDonald: Okay. And does your walk include like FDIC assessment and CECL phase-in, things like that?
Terry Dolan: Yes.
John McDonald: Okay. The next question was just on credit. How do you see charge-off trajectory from here? I know you’ve said normalized 50, you won’t get there for a while, but the jumping off point is 35 basis points, I guess this quarter. How do you see it kind of playing out from here?
Terry Dolan: Yes, it’s going to continue to normalize for all the different things we have been talking about and that I think the industry has been talking about. Our expectation is that that 35 creeps up into the kind of mid-40s by maybe the end of the year, early next year. And then it kind of normalizes around 50 basis points once we get into 2024.
John McDonald: Okay. Got it. And does the full year guidance on expenses for this year incorporate some achievement of merger saves in the fourth quarter of this year?
Terry Dolan: In terms of cost synergies or…?
John McDonald: Yes, exactly.
