SVB Financial (SIVBQ) 23 Apr 202020 Q1 Earnings call transcript

Welcome to the SVB Financial Group Q1 2020 Earnings Call. My name is Daryl and I will be your operator for today's call. At this time all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Please note that this conference is being recorded.

the to turn of O'Leary, now Relations. Investor will call Meghan over Head I begin. may you Meghan

Thank thank Daryl you, and today. joining us you everyone for

Beck for results and CEO, our be joined about Our Becker; members they'll first are of other Dan management our financial and talk Q&A. here XXXX President quarter by to the Greg CFO, and

svb.com. on current our an X-K in earnings been have filed of release Our section are slides the available letter website Relations and at summary CEO Investor and

forward-looking this in to forward-looking during actual release statements may making this and be you We'll made with encourage differ statements call. to review results call information, applies dealing materially. our equally We in which disclaimer the earnings

about those including GAAP some found our may to of in measures be discussion measures addition filings earnings references release. our our Information and to in SEC include reconciliation In measures. may non-GAAP financial

now, turn Greg And will I Becker. call over CEO, our to the

you all today. for thank us and Meghan of Thanks joining

we earlier from see loan But can You and substantial our impact macro sure on of primary despite yours loss the that the solid COVID-XX. the environment provision. is focus we filed first quarter I'm a too today had materials a

some employees, there. assessing been priority our Our our performance. have our on impact future of communities likely And the on clients, helping we and provided like has every we're details initiatives and business, the crisis

as recovery limited to detail possible we're will as provide hard much how downturn out. into visibility despite We've the and and play worked expecting about what economic seeing the

to continuing growth. in this We believe long-term in invest strongest, support quality well-positioned sheet liquidity. history we our our including the have bottom-line are through to ample crisis our clients that highest is The while we balance

we resilient to the believe long-term. expect be prepared remain the in are we and While over innovation economy will near-term well the clients our challenging,

the I'll want open possible, as Thank operator right now. you. you answer ask many have lines We so to the to questions as up

Morgan from Ken. Ken first comes our question And Stanley. Instructions] Go from Zerbe [Operator ahead

Good afternoon. Thanks.

Ken. Hey

thought just want start off. to I I

compression taken seems Your about if the to we guidance quarter lower in moves? you've for rate quarters also expecting. factors were Thanks. there's second some Fed NIM NIM you cetera? talk actions that any to a Can could the like of that And the help minimize future lot than of impact compression, what less drive spread imply et just

Ken, it's Dan. Hey

in look we quarter the if and we in obviously, at first place, So, portfolio what's the place. NIM had the taken hedge

close of changes same the Our we quarter, floors put the at billion favorable. were of rate investment on And securities the triggered environment. all to rate the at in was by $X beginning the time still environment while

when more add a and benefit of quarter. we changing income the a had portfolio to in interest provides net growth much mix of where technology, all that interest lending heading we science that So, healthcare, in second margin net to the life and more into

really So, are consider. all the those factors to

really future Now, ahead looking obviously, is to shape of curve important. the the quarters,

going Looking that to funds forward. pressure on primary factors. securities But and we can invest at from margin investment can think will continue the an something the perspective where are put those I our is

it. Got

that But cutting Okay, for types guidance? line quarter other lines of in second the that's thinking some helpful. in and expenses of I understand that terms lower the your lead expense makes And help lower I'm of the the again, that then to of non-comp sense. expenses about guidance you're you compensation talk can

investing along certainly expense and in as clear, we're to natural be other the more the front business. nature of their business seeing is What in invest invest To looking not We're expenses, that just strategic priorities, to long-term. cutting at Yes. we're levels we and back are look we expenses of If the take development really look things certainly step economic or activity. travel a And the are we at anticipated a our just the us. lines weaker at tied like amount we that are and are very and we activity business we'll expect outcome business lower and and be look in do of to weaker what that we in the those as looks environment growth. quarter. continue by really that those our driven But ahead invest second these to to had

Got it.

if one I squeeze could just Okay. last in. question And

much terms of like builds Thanks. early versus the of provision some to we categories quarter, this expense and reserve certainly the the that stage other lending In of portfolio that took categories? relates your technology how

towards the build I'll one. Marc. weighted is categories historically of we've reserve had take the and early stage amount losses. heavily is investor-dependent where pretty This the loan And that greatest the particularly

at look new. on breaks in down earnings by slide a a risk-based the pretty old -- good XX, for see reserve that you'll of a take you matter, and depiction If the the XX slide presentation how good from to the transition depiction the segment

very you Thank much. Perfect.

Go question JPMorgan. And Steven, next ahead. online. from Steven Alexopoulos are from comes our you

that. Hi, everybody. about Sorry

Hey, Steve.

the Looking equity capital at than call much it looked VC the stronger private pretty quarter. through strong, like details, remained

mix PE, in XQ? volumes call guys Just in higher you capital the are of overall given drop-off expecting a

This I'll Steve, Greg, start. is

clearly So levels to levels, slow. what a capital activity function call talked is right? are So activity we about, as activity have of going

is and is, dates to -- those going but outstanding. this replenish will quarter as by definition a to over the So downs decline quarters, activity deal calls these that maturity happen capital the you're course that in have see there a those in following of then pay what's going

we some the which But that's difficult, beyond again, So why said, ball is normal up second stuck of we it QX. couched clearly to that's how fast we're attention levels crystal the quarter have to picked much kind did paying levels. see we why more But second in the is we as activity back something to of kind quarter, drop. as

firms took Greg say as versus with equity how compared and cycles? to other advantage as the in pickup pod? And then think of prior we Again about be you where Do private normally in do when a think it lower a Yes. right, cycles, see valuations. shortened see would mix past larger you then could this we the more pause

I say. going going Steve, it's takes find is, there's of going what when investors And pay for, are the and to balance it's for the between took and that one model thing a come coming know also looking never would looking see don't effect does sell And that know. So be how And be. market say, long behind more before, for whatever, provision, such we longer. into your to take assuming the There's right we And did here's kind an when that's don't we and believe What quarter longer. you our seen asset will mean? can an to basically point even our take literally the amount right? deeper ripple hard How to provision, right whether or money obviously, and on. long the it, we said provision It's it is never are that But been we we've this deals it after extra to to dry factors right? powder. of it's that. to this we this sellers

are spooked, at is this I that we limited of a And what unlike partners checks. partners have what actually an looking some channel limited we've think heard sign. done seen they're kind past, we've partners limited as to talked And we've really in opportunity. where that's the When from great

add phone. So the when to to what to I Descheneaux to back on is going anything Mike to is will be we've really, start But difficult or good if about indications. going has seen he's calling seeing hearing. it determine. come see he to that's wants to normal he really

difficult Thanks, do Steve a mean -- You as about with excited deal video think about investing to investments really for call. somebody get $XX going be to actually to right? Yes, just there to logistically, And with things clients, a Greg. right? just million new is are some it's Zoom hard, will over well I very

So you think that's logistically. to think I something about have

is see have of aspect, to that try happen Over will be is not really the impacted to prospects have how it duration down out. but have or new, be an certainly to continue shelter work you if going that itself and physically. would place to investment long they to a the we what could going the investments engaged existing continue time, new support by so Now of in

like a I how deals to think -- that. the we'll activity. in meantime in drop-off there's do been that's certainly But deal there's figure all out no doubt new certainly

stage so out portfolio, last And Marc, the early stage would we've prior Okay. half calling that accurately look composition will any it to the the are than we when in the of believe you then size you early different that That's early there materially Thanks. But change the losses is seen helpful. stage crisis. financial downturn historical in at guys book, look if lead in you be in was cycles? at what for the it's noticeable

Yeah.

So there think the that's defense around is truly this. probably certainly that's one million call most the early and out in that's stage. different And is that loan unknown Steve at times not size granularity to The I best that and like best $X.X the important the average portfolio. thing in defense is against

portfolio. powder on this more are and Moving into beyond to primarily; probably that with, downturn. more say what support cycle going Two would to liquid relative investors different in average their companies I is which have on the things dry this, average

least wrapping together, speaking the saw them, quite backers, three at more things losses generally backers behind better to being things capacity those continued equal juncture so be at with more companies not and And XXXX, other deep-pocketed funded better expect with what granularity in this we XXXX. would we all

Okay.

compared VC in there supporting as their cycles of far no behavior companies? so other change And terms to

would say early discernible No it's there. change real yet. I

anecdotal venture And stock a beyond they've apart would on in some making COVID. seen a us haven't those. of falls are real decisions We've and of taking same we breath is the many all portfolio where got couple in effect say instances in time. as I the that like think of financing blamed I of really round of capitalists of seen

in excuse. I maybe the crisis was think an trouble were These companies anyway.

would seen in that's I what really abandonment a taken. probably haven't we so of And investor function pickup and still COVID-related call folks a

color. you Great. for all the Thank

Thanks.

And our next Poonawala. question Ebrahim. Ebrahim Go from ahead, comes

Hi, guys.

Hi, Ebrahim

reserves. to follow-up on wanted just the I

and where XX we find slide the breakdown. think on the detail about if -- actually in you So great

give reserves are or reserves line loss XXXX In at Your call X% to the loan peaked capital take. close about XXXX, X.XX%. ex

we capital the relative think significantly you XX assuming basis when crisis, line. has call you become for fact expect provided the even last don't to against I'm still that about the portfolio that much better losses the So point

that? meaningful incrementally, first the of tweaks where quarter from talk to like a in Just in minor is forecast us do relative -- the you like terms there you any end at a or build reserve of envision Moody's are something to

is will start Marc this to it. I'll Ebrahim and Greg. to So, then add want

think things provision, when of I the model. and you the look a decided it comes what provision substantial in at one is the it we from

couple or different it. sure know you of we you had into As know were there's going I'm as a we choices

could very take Moody's two the those model You early between delta the the Moody's forecast the later the Meaning or severe. later economic model in Moody's March was model March and very are different.

We that we So we very, it those a uncertainty. those record good, things. just had there's All quality as bank expect has and about, the the consideration XXXX. all into as including because very things be lot track bad to in decided that Despite that been took we of private talked things really all credit to don't good embrace good. very we it was

as and a model. the lot really kind need in you rely CECL to of your -- you modeling We know,

So came and a analysis. that in where from you reserves the that's lot of see

it probably you to give over important the specific that's I'll more to most color. a And turn point. So, then, little Marc

Great.

mentioned from so well and is perform notwithstanding provisioning in loss we would weightings of of a quality March to particular expect segments capital terms we've Ebrahim, couple And to COVID suggest and of you standpoint credit call in scenarios cetera that and would what lending the continue et there. the that the expected one Moody's XX very applied

see another released That's worse note -- of saw was early that March we us provisioning XX, a tell to version further little late right? not a we of part bit take None the between think your I can hard the your it that was one do March. answer we delta and And in of will perfectly Moody's what a future. to think was April but quite But I QX? question subsequent

by future in first. here, think tell but is that's comments we all we is significant are Again, model will two and so that actually to of to not I we the not. see they supportable. thing the the that I that And as I second can't right to the or showing have the I quarter projected reserve whether are the the seeing losses we'll other And extent a equal first up have I to unlikely see in fullness provision into the are the that's up, think time think consideration think, we in whether in think evaluate the then things as about are continues here likely. as what the being take we be And model assumptions showing

your any it. given loan anything the four in book, around just would loss investors change portfolio? that there the that make occurred most you've zero that call had behavior view to for played fact losses? that kind to tied rethink is capital some And be six Got expect, And book that's is potential weeks one just does of that zero on there size to losses? anything make likely that that a customer the of or would some Has you I out think line, you last most

-- are it's answer Ebrahim, XX Mike suggest that or nothing going is still wish that last seen that no. quality calls I'll The to made from deviate at answer Marc on over blanket Capital time. being we've is would Yes. credit again. what to all seen they to years. one. Greg add the it. We've take

Association, of we perform We pace out slow the being more slow same. basically -- a any covered the to the haven't issues sort asking take and LPs the confirmed Fund bulletin comfort of capital Finance landscape this heard GPs put that calls. about And broader from to broadly of down or

Noting was notions that discernible. they this there if that partners. couple limited there the worth Similarly, of been defaults of such high has capital articles raised those acceleration call articles capital with was a was dispatch no things, referencing anything that quick including absolutely that were in no there reporting to net in calls

our And And that far stay so will so so, that hopefully way. good. expectation is

deposits growth? that again any significant Got on terms volatile start and back are and deposit environment to of the you can driven back just separate deposit in of the to early once an know zero, we think I where rates fact growth noninterest-bearing it. that function in deposit but it's I days color being And by its saw the noninterest-bearing love And We add. would topic a very deposits. Is crisis are growth.

it's Dan. Ebrahim,

with we think we say mixed that to had But for that think of of going are trend not environment, noninterest-bearing I quarters. what this saw see at growth. that in into continue couple least the won't see in a we're at the reversal looking we'll the to I and quarter. that we to rate are growth see baked we that more the assumptions first we interest-bearing our That's we quarter last seeing over the trend second do of in. And

whether you talk eye factors as also to continued growth few keep well but this new the as on when see In type there. environment all of well companies, as to investing as fact depending an impacted a well as that or are saying obviously couple of these back it duration revenues we -- in as things formation about some company about well. you We'd certainly to love add of VCs an deposit are the a think I'd is the There's comes were growth. PE new

you about are things some those think about other and just deposit think to when growth formation. So deposit

Mike. Thanks,

next comes ahead from from our Casey Go And question Casey Haire. Jefferies.

afternoon, Good guys. Thanks. Yes.

those Is pause trying going securities obviously The guys a you that get it's portfolio do very goes. I funds? the If money do in part be to and sense with about What for get had to we is liquidity? big it do a book? call. this of you Just guys. a So a question capital -- where

quarter, in end albeit cost securities. to not we Hey, was the at We still end taking can can make a with Casey, securities, the the deposits. of If potentially decent them them investment look terms where Dan. it's X up points we near deposit paydowns, ago, in investing all-in months of they see do XX spread, at what investment with it of basis XX certainly and costs

of So we with that next payroll protection the $X also over to funds work. use three we as originate the SBA's There's of those money over put months to billion can a expect six short-term program, that. to

So potential we'll be to using some those of those be support paydowns funds able to and program. that

that are money. So us there to put be places to able for

stage question And the you on great. early follow-up for Okay, just, Marc, portfolio.

on that burn of liquid of is sense so give those mentioned are just that Can they gauge sitting we much You versus kind portfolio than cycles. here? in on, just a cash that -- average were what that are more they us duration can you companies previous

Yes. previously. a is call month cash steps downturn, of is average things I remaining what of average the wasting at And statistic something are tell companies though most generally don't as think that you one we attention we've have disclosed the I this extending seen think outset time companies RML pay in on good we liquidity. we don't I that's news could place that runway, reducing could speaking to remaining liquidity of quite is or a standpoint. bit the from which encouraging What any and a And burn expenses handy pretty elsewhere, of that, we an and month we've possibly not in are see. and the all one

down portfolio, get runway pencils out a house taking diligence, name their folks to Really not points is that being and that company their capital their get A now earlier due of and raise do of cetera, and out right? of right? as having as to to the to to different et long place, needs stay right as go stage, the to the to alive for game able of maximize just to early stock possible

and of flowing have to where better All then And companies factors. become going push going these things If out et is those a more by to companies are have these outcomes. are can outcomes. runway limiting again, place on better things capital and extension, much much average their get we're to have unstuck cetera,

you. Thank Great.

And Demba SunTrust. from from question next comes our Jennifer

evening. Thank Good you.

Jennifer. Hey,

other the could I Hi. over it focus, the near with a outlook think would revenue competitors. more stable the bit talk science SVB healthcare life Could term? about than little maybe you be Leerink

then start -- Yes, are Yes, Jennifer. stable articulated. much, the there's going be other and reasons add be I will will it you number IPOs certainly they're much, of may for But more it much may fewer. than something. Obviously, believe will to IPOs, we Dan impacted. but be it doing some want to no markets question the

You saw be had quarter. it's to although, tail activity, just going of the And that end some the towards slower. again, April

important is drops to what's declines expense again, substantially that, as as well. Now, note revenue that base the

that's one feel the -- team, was platform team as better platform. and and the And science very, we seeing and would that. buffer so very across we and from good was said SVB platform, with you life platform, tell made we're Leerink acquisition, We're it information sharing SVB overall? about not was banking, because secondary benefit, health care the the we're the no there's Maybe that we it about how commercial generated SVB that about question have. revenue you question the feel still our there is is the knowledge about collaborating across just do Leerink, Leerink, how we I seeing originally the And when

have we partnership it's them. we impacted, feel with the but very very, yes, about good So

of PPP for your there? the loan what client on percentage And base a program, applied

Jennifer. Yes

give the just the number I I'll So you and start applications. have but of I'll don't percentage,

these are approved of process already X,XXX, So the program, numbers applied round we funded. those SBA funded. we're have clients for PPP had actually were X,XXX about had and X,XXX through the program. we that We had loans and about -- getting A substantially been in

the can still in for then are roughly that of wave gearing we take next are X,XXX, kind care And the other of up so X,XXX that we companies queue. the

ended about of feel perspective rallying an SBA before XX good I of behind we it have how XX as it's up done or about it. since we that's in we've not loan talked kind years. So think a really We

So I very, very, we ramped where incredible working job today. to quickly. And who huge our want are a us absolute clock had we just to say, around team the hats to to to very did off up get get

you much. very Thank

Yeah.

McGratty comes Go next And question Chris. from our ahead, from KBW. Chris

Dan, Great. Thanks the for sheet you. a question. maybe for balance question

interest-bearing. the whether think talked on in mix mix given see change I to that and speak Could off balance where in on it the you Any sheet? or might expect are earlier the you how about of we flows non-interest-bearing, or growth macro trending be deposit client you off? rate cycle the you

$X Yes growth. the Chris. client of funds in is sheet We of towards had what growth. on end see quarter especially we of a really terms tail billion strong did the quarter more And average over growth balance

do the activity So going mentioned to sheet, a lead and more at fundraising see of that's we of lower slightly of look of deposits. to expect we slowdown Mike more as look flat the deposits but at to level to activity overall lack balance the on business we and next earlier, as quarter

could a basis are Great. points. the XX off-balance I the came Thanks. And down little fee rate under on that if you

where talk impact rate full see didn't obviously you of cuts. you Could kind about the that of have that a You might trough?

Yes.

up basis those going this point. single-digits high we're spot to lines. think a going to end something it, where the to I along That's trend where point the maybe call in at range So in let's eight it's likely it's in six

irrespective of if those Great. quarter? I QX guide funded $X.X And whatever $X one assume million then that? that The could. that PPP Or of million this one loans is for does get the last

do and The NII the margin the as well consideration into piece. that loans as the take --

extra more that as be wave in program, of could So there extent included is we at we from that perspective. looking the an are balance more little there. the that a second To originate bit

So metrics. our that QX is in included

Great. Thanks Dan.

Davidson. Go ahead, from question comes next And Gary. from D.A. Gary Tenner our

Thanks. Good afternoon.

Gary. Hey,

questions obviously, average. period on the guess the well off, above loan A the end were I balances front. first of couple

curious So I'm to that just you've flat quarter an perspective? lower driving paydowns from are that the seen early if average in second outlook

I Greg. Dan. will – is go This ahead,

Okay.

this a the At the what's might on overall balances on perspective loan that but view average April. the average to to on lending have in Mike balances our balance slightly QX going of happen that guidance. to add were in want thoughts in point, And And holding are lower beginning from something we our that. included

Yes.

obviously quite to in we as quarter Just well finished We well March with too. as respect right? clients suddenly had strong downturn loans, as the for some drawdowns this our from prepare they

So $XX.X were but $XX you for saw period loans the average was balances around billion number end billion. around

services equity numbers. again, of is As mentioned a of the private quarter, little loan as quite into there terms as funds in the behavior if banking we And payback strong global strong paydowns we that very are the or is we the bit starting too. see well starting just of we're to watching well. But as thing really enter closely there earlier, QX. this

point clarify to from question. just the And last Okay. the

think so guidance? about it? the to queue X,XXX or would that driver? additional upside way In is borrowing terms in that that to of the and you've up already the as PPP. in sciences Does you've be kind the drivers upside include or queue, increased the the loan the got – life fund in Is your of in commentary the the that the Whereas, by driven where technology initial is as approvals embedded could got right customers well the your ability

to about way it. think right the that's Yes

approvals We going able we're to have the of a to some we is from and to the first the have uncertain. to we'd round, look is be low. if how funded general it's rate from loans, already able assumption Again, where we the that clearly more extent can what think quite at be provide do those more you do much That on upside. SBA

to have financials. overall a So material won't it impact the

There's VC Great. of terms public some concern? of positive you terms are commentary Limited the might about then not overdone to Okay. of kind or saw to in and a in powder dry the maybe Or an – because reports Partners, to talked rebalance equity or finally whether that been their LPs have lower view have And in how overweight seem were they investment. Capital in Venture they about that that? Is values of hearing you – allocation. very

This actually both hearing lot you dialogue last kind partners. back and like we've Mike last time want it's then event, about where and then the than time. been if limited clients is that time this a to unlike you're talk I Greg. would and hearing go some but would to with add I'll start the spending the XXXX, say to because that less was main it of

One So alternative I'm happen portfolio. happen to reasons. be a about sure couple as they lot I investment been a going upping don't these is their believe thinking I'd and but there's it's it will actually of on margin And of the much. should say tensions endowments have

like don't the do it. it's they is do – they question when But

kind and rebalancing. going are just opposed about now rates we're as you're I think think the So right zero, more back to and down to back low percentage are they to to up of sit go they as that as see

the as this But are margin to an think them of to I are look their investment opportunity see at to some some. overall, to on yes going pool. add So more you going

Thanks very much.

[Operator question Go from Instructions] from Brock And Brock. UBS. Vandervliet comes our next ahead

Thanks the taking question. for

of So XX. release trying tie I I to think the XX the and Page was just Slide

the balance And billion larger that. terms $X.X is billion? Is against the deferrals deferred, $X and Or if number? could are is that what that the total a other you In there? that of venture characterize of portfolios debt

make got So it. it's question Marc, I'll start. just And sure to I play want I the back to

we're asking are deferral? the Or for total at... were where of eligible You population that loans

has billion total the that $X.X high up and against I what's mean, we of But been other I overall words don't that? that just entertained. that then pattern on yet. And has slide, the of deferred? you've what could the deferral come start In seen portfolio this level. think percentage at the

Okay.

it you asking. question will attempt answering to this way. I Hopefully, the were So I'm answer

of worth to six-month started loans. payments debt key $X.X just of XXX% that time. eligible So offer amount XXX the if of deferral we point the a of had venture six – payments asking. question would over we of and that will months a up deferred period taking I'm six-month on million the paid to over A population that six that back out goes to deferral that principal period. program, billion with roughly interest ratably answering of accepted is And stop there, And that the period are that there going I'm you continue monthly extension the to additional $XXX loan during sure make and that months.

He's I'm to dropped Shaw Wells on off. [Operator I'm ahead, Jared to going sorry. Jared. Instructions] Go Fargo. from move

Good afternoon, everyone. Thanks.

Hey, Jared.

looking just of at questions margin had a on that. Just the guidance couple

on certain across the First, early that widening? a view spreads the mentioned that more that spreads loans. you're of sort board Or some you are is there? general categories in in signs potential specifically widening seeing Is just that

is of for now. equity I segments definitely Mike movement not changes example – you're there's movement right seeing of But private it like Descheneaux different activity. whole seeing you like not This just deal so in lot here. here still because lot is a some whole very world early mean, a were some there,

here. you know. Then, kind price still it well And more high-quality into product of the to life sciences risk environment area so to get start you as starting given people technology when the it's as of and you are see

XXX price to XX least new market points. deal a at basis a out terms little in of this different given to So maybe whole activity here uptick for But seeing you least banks. new, going of there at again, lot bit are the not of

again points, buyout even up XXX few XXX you started. very, pricing And deals to but very definitely maybe are basis then new some on heavier increase being sponsor the to seeing

So COVID before pressures – alleviate. the at pricing the definitely so again, it least started But previous we'll really to from time but early, again they here. tell. from have will But see

add Mike that income our of in have substantial to said margin what and a don't quarter to guidance, we included Just expansion. interest net amount just second

expense? And of that? loans those is of actually then of on the guess to should the determined? Okay. still is One a Thanks. And a then on in still are fees we the reflected what's fee blended question. that rate I donated? – terms expect expense that that be sort PPP charitable level And Or two-part in two expectation ultimately all

is This give little a more start Dan and will Greg. then I'll you Yeah. detail.

don't we yet. average the So have

higher average are the as loan the end average on fee as – the we Our size. of far

you take XXX could XX range. between it that somewhere that on is – in in basis the or So give range basis It's probably side. points either in points

So you take that.

how and I that we the going We're looking to have to we is going really it's play that exactly -- estimate any is it, to look to probably about when so want at know associated don't fees with we'll this to fees it. obviously this, less put clear to donate, be we administer And together losses out. we're gross made there the servicing costs because because going be comment to

million something that to so And charities. to to when what looking said all end – look something $XX it in and $XX net And could that is the amount is donate being done. range up million like, could what we're

But that's more So as lot know process from we're the it. perspective way from nine think to eight, to little I'll just the we the SBA. add. anything about on happen of quick bottom. going clarity over top get if has a how Dan a you and we're the to bit starts thinking he wants to more But weeks forgiveness coming gives And a it to the that about see, just really

the a financial timing be And you're other impact going when the greatest terms than balance going going to the in the recognition of forgiveness sheet majority program the the and the then of just of amount are with the both that's see you donation. the will And that's applications mostly net when of QX as and to event fee see occur. when majority to that's associated

that's So quarter. second included not the view for the in

Okay.

level assume to the should we with being four the timed out So following revenue that maybe is just spread the opposed similarly over donation as quarters?

to closer Sure. and figure we get really we'll out it. I mean early that as it's

guidance the is going to that key situation that's those we'll on looking And play as exactly out. net how we point clarifies, proceeds. I are to think donate give the

Okay.

actually impact or is just termination margin or swap how question that? benefit of of detriment the So final on an much to a the on margin agreements,

close $XXX on basis value a pretax overall to was million. The

included benefit the million So interest what million this something quarterly the to income of over seeing four we're into to in through. materials years. And is call basis that's going to it that's and back to close going come $XX $XX on a three is to let's amortize next

So see will to benefit million over $XX the million through. particular you $XX next one to two years coming in that

you. Thank

we up. follow back Vandervliet And his have with Brock [Operator Instructions]

Thanks. Great.

to of maps So investor-dependent total a in of the terms what loans? billion $X.X the

billion Is How that? eligible? much $X.X is that's the it

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of about far. take to about And offer are XX% on programmatic half is that an I on programmatic the well. the tomorrow up question you'd off the started numbers think offers before as round we've so And you other rate Rough expires seen investor-dependent dropped, that it coming population. roughly expiration

where or so, going XX% think so land. we And that's is about to

that measures? there's efforts at in portfolio broader no been beyond other And Okay. forbearance your or

Yes.

wine. are the the private what So debt and XX. you programmatic Slide offers three see bank on depicted It's venture here

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a past pretty these on addressing out be fashion. key But programs business we'll usual we the point of in next as from case-by-case more here see everything much is

the for color. Thanks Okay.

no Becker closing for we comments. questions to it more back this have brief And some time. Greg to at going I'm turn

joining today. I thank for want you. everyone Thank to us just Great.

have of for Just through the and challenging ourselves, financial we've we just to in been navigate kind times clients expertise reiterate resources well. this our as best obviously in not and are position and support ever to really to the but

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as -- long-term also this environment. about incredible a we so partner storm. innovation It's want such really And to proving are they navigate be it's we amazing them. And that in think with I for helping really clients be us, we to this that showing

just it challenging time. just tough appreciate a through time. everyone's I I get it's know support. It's So to want say, And and we're going to a

are crisis affected that and has safe and in hope thoughts who and everyone personally time. hope hearts we with the to our this just want by everyone stays been Finally and healthy

you. So for day. joining thanks great everyone us. Have a Thank

gentlemen Thank and concludes Thank you participating. Ladies conference. you. today's for this

may disconnect. now You