SVB Financial (SIVBQ) 23 Jul 202020 Q2 Earnings call transcript

Welcome to the SVB Financial Group Q2 2020 Earnings Call. My name is Adrienne, and I'll be your operator for today's call. [Operator Instructions]. Please note, this conference call is being recorded. I'll now turn the call over to Meghan O'Leary. begin. may you O'Leary, Meghan

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

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

Our making website materially. available differ dealing may have encourage results Investor on filed which current Relations actual and forward-looking at and an in call, section in in release letter release, this review to CEO earnings slides applies made disclaimer our svb.com. with We the be We'll X-K the statements call. earnings of summary statements during been and you information, this equally our to forward-looking are

to In to addition, I call filings And Greg non-GAAP our including those will measures, Information GAAP and release. President the and some in reconciliation measures, about in of measures. our our references now, be turn include financial found may earnings SEC Becker. to our discussion over CEO, may

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

really see from feel the very markets credit quarter. today with clients our are a for solid low had with client resilience, income can second interest our very strong we exceptional and SVB filed good and from Leerink. we net Overall, quarter including the we balance strong that outstanding losses, earlier liquidity, revenues and sheet materials growth, You our showing results strong

for we're select XXXX. the outlooks drivers that half see providing also You'll of business second for

as for rest With know year tried questions. provide economic you we've year. still While to can that, given for predict the color the much have challenging it's uncertain the we the to outcomes of as environment, we

you. up Adrienne for So Q&A. open I'll to Thank ask

[Operator Instructions]

open? is in see I there. Adrienne, names queue any the didn't

Bank of it Yes, from question Ebrahim And from America. our first Poonawala comes is.

color appreciate mentioned equity. the downstream. you the the I guess, you the just common remains 'XX sheet if terms would raised company or Greg your you if abundant to growth to holding question, your positioned also, to In But that appetite how capital raising around have guess decide if letter, being capital. some Dan, I growth had first or when off in than, capital just balance around differently deposit you at strong around you able talk balance can support to XXXX, on sheet. channel growth And is of bank today I

Yes. it's Dan. Ebrahim,

and to to So start, it. Greg I'll might want add

in overall a the company able for to I debt you took amount number to cash the think an the the billion, ample senior that downstream to company if at that of look cash at by holding at position the look one, take bank. be provides, and billion at actions raising $X.X holding we quarter down $X.X at

about, to that Tier X us So about we every $XXX let's it, if XX you think downstream, worth million leverage. points running call of gives it, basis XX that for room on

of all a not be that could. $X.X downstream, So billion good but portion could

monetize some still it's if extent portfolio, that to an So that's the And pretax that got to at the available, a there grow order just $X.X from two, pretty Number of sits billion you moving unrealized perspective. we from a we at of franchise, overall that to on good capital in number earnings perspective the securities the investment third, look close to gain wanted clip. and one.

able things, our on to secondly, the those already and resources sheet to we we've support be need that extent think deal to to sitting So between with growth. we got to, balance all ample uncertainty of the

is think at don't that I So capital same situation, externally point. we and the wouldn't this for looking be this

how deposits any can of about you on balance -- there And end is on of moving versus difference channeling speak that, set sheet. hiring how off Dan, if done while you're some of this just part think versus how just deposits you've around thinking balance of And bank up it. to terms you sheet the in is Got terms in about on?

have Yes. they seen think I had this clients, are, our we I a security the think looking on balance over type sheet more I and bank mean and last number one, year, in as for of you've environment, more perspective. safety

our off-balance are as with they our I are sheet-wise. our So sheet are what products products products and here, in see as comfortable on-balance clients well think place, our

are of that desire to spread perspective, And earn at we, a about, I think good the to on talked drive to investment same and on to So we to would capital more going think those clients I deposits of I as support see form at a balance time, like the the just a with in you're least that continue from for sheet. able of our deposits like liquidity. a good continue spread but not excess as securities to, a,

confined to time, large same amount the it. Greg, I a companies. activity larger investment X,XXX. one Got about And this you just funds, very you more, record of remains clients At quarter, mentioned added think

there Just what I going is as outlook half? reconcile up about in if the on could guess, kind is client the and of, you back picking formation, terms what's of what you SVB think

It's fundraising side, stage. let secondaries. It's is it IPOs, stage. is Ebrahim, answer mainly on me that. clearly, Sure, -- It some but later later the

with know, the a you very exclusively, at as that almost see talk results. we SVB client you stage. when But the Leerink early that's is market, that acquisitions, So or mostly, about active and new

an to to broader our a we've organization. clients And we've right a Dan think pandemic, and this product downturn that seen, that. have bit, around been we've even on I want bring in. trusted and view this practice, gotten first in where that so what have more little developed economic to touched of now, more focused all, building on of And when lot companies I set investing they you early-stage a acknowledge, We've a go

team So we our as believe that's well. there. strengthened been And a catalyst we've

that client acquisition quarter. has a done second so results the group really, banking very, really are and strong startup job, our overall, very good in So from the

And it. so that really early-stage going to feel invest to good really, practice. we're continue in We about

balance and formation out plays of that for the And see how year. so about the we'll

our from comes JPMorgan. Alexopoulos Steven And from question next

So growth markets exit reconcile matter matter? record a I'm happening? growth $XX clearly disrupted. to exit you markets they quarter, of this with this Do being everything the we record inflows Like not given how the saw of anymore? Do not if trying that's client figure, do period-end billion

as a start, There's Yes. President Mike want of going bank, Descheneaux, on, add it of I'll to he Steve. things And to the and some well. color our may lot

exit, strong, when health when M&A, you're you have soft. the has sciences, IPOs to of for But markets the that exit, exceptionally key of the balance we at the been secondaries, life care, So or especially the been look strong. And that success thinking think has I a of to think Leerink. there's that the part a going And exceptionally one SVB of that's year. of degree, been that's of continue, of that catalysts been in that

and one a that's the that the of especially major So part growth, in client been big second category, funds that's of quarter. part

So that's been incredibly positive.

that venture is capital. you part second still look can at The

companies money. of pieces: X so there's companies flow; And and that getting -- number are the dollar

the has shrunk. amount. number were pretty that saw, of actually But dollars, actually very, venture It was as money, companies the a strong, down strong. you gotten So capital, have fair very

being active the markets in And so stage. you very late from benefit

then there's also And part You want as their secondary I put where a again, and the to from markets. I believe money trusted benefit said, with they organization. go

of extraordinary. benefited and from three the pretty really all catalysts. that, So And those things numbers strong, were been strong have yes, we

as -- well is capital Steve, think add, to of it's maybe. incredible or thing as levels the one in there. things venture you When Maybe dry a the arena powder well, couple still about

we their in winners bit -- well COVID the companies, triaging capitalists to but get too to it's to the more are So now in and and deploying are started a tougher they out with starting through and able particularly of working the first to on kind focus when the and dollars and marketplace. and venture the deploy, little as willing engage some adapt starting environment, invest, as comfortable of when

dry that put they that work. powder can they again, to So have

or people not?" of combination smarter few "Look, So getting Greg about have it of of is combination for to need described in the that has helped really other add, trying rest the well strong are well, these what environment other left the and the rate done, factors liquidity of has And government slowing some the you Some of a or we sure. cash, the PPP of as things stimulus system, too, has money things it's save and money for money strength other the to to to a about I start that So the things the then the these saw, all put do there. they burn say, year certainly out right? obviously, lot whether think

of the I your Leerink Mike, press secondary out. that releases they get a saw is you? put having that more money bank? Is that fact Is now? helping into we mean helping

We have mean been the for relationship solutions and client, so good great we partners, relationship products obviously, definitely certainly they our are. we with a when and they've I have a or clients. have

our open a it had yes, up so And success the rate good does clients. really with we've avenue, and

these probably last on one-offs? seemed think the when is Or quarter? look of How Should NPLs, severity at number that then quarter? those outlook? I the that then the the compare in What abandonments Marc's Do And And books? more what early-stage you we to there. was credit, did defaults were this call high. Okay. the we -- have X

Steve. might Dan and Marc. I'll add. to start, Sure, wish It's Greg or

of about speak, Steve, terms quarter, abandonments, and the think terms the way is of in the a number loans. to nonperforming so new investor charge-offs better the So to of probably in

pretty degree. investor-dependent quarter. see, small didn't granular number. can up really you show the the it's again, the As low same And in very were But a charge-offs

roughly investor-dependent charge-off And there of that, kind there's take not lot And it. of million, new away then a loans. because to that really from can one, segment dominates there's the in $X it's going nonperforming you so -- part in

have new I isn't a don't those, you granular beyond of have call that in early-stage. But on large come left of And We numbers I what's large -- largely what handful to moment, early investor-dependent, typical of or would rest the I'll exact think terms is I that two two but when Steve. the an the mix, nonperforming count a of in back a them, the the ones number. bigger out the take

the two Going large to ones.

business I that -- companies anomalous. so think of disrupted to were time And just would over say the is extent stem arrival the COVID suddenly would say, by efforts I do businesses always beyond we largest sponsors think to back a those, from recognizing as try here, of where with both that At there's of of say COVID-XX. or are moment, of now. the be encouraged to to over uncertainty to those hanging spread can of at as the standpoint, COVID so that to just examples are on this same get together it and fair bit typical environment the that some I the this that would significantly of to we and place is and management anomalous, knocking disrupted, recover, the working right severely the was work entire that degree I a and

Steve. I'm stop you're asking. there, the Hopefully, So question answering I'll

Yes. That's very helpful.

question our And Zerbe Stanley. from from next Ken comes Morgan

money. they -- million for makes my Leerink a then did because probably But kind million. one of like high? piece, of guess little If XQ, more link. a items missing seems I of It can because in on your are about $XXX guidance, comment paid expenses if is it fantastic $XXX question, probably was more rather which in what seems they It guidance that money, noninterest that the Leerink important I should expectations totally give get like expenses the understand of you your sense. make terms do we're line and you are to doesn't bit unusually

is is Yes. and Greg. over variability. said expense a then it start of key Dan. just outlook, turn what I'll to percentage And a This the is component which is Ken, revenue. you the clearly, it of

quarter a the it's well way second the works, obviously, way the that they quarter. did continuing look work, really there the you ratio the is see quarter. -- into releases or well So is third of press at they the do. how third function And And guys obviously, can the payout momentum into and the earnings

we is, to to and part going of are comment nature, components either be said ask that we from enablement, because But All it. business And to in invest onetime that's or the going QX will to So relates the that's majority were revenue things. in invest the onetime continuing employee that those to on onetime I component are as expenses things I'm many, Dan behind QX, There many But of believe are some to Leerink certainly driving continuing other we actually we're that years, that again, the for impacted are other growth. expenses. even that client many, of opportunities. in the have think be in it QX onetime experience, that. and

ask Dan that. comment I'll to So on

Yes. Thanks, Greg.

really, So there things. X are

baseline -- first. So for the if expenses and could we just second quarter the

some performance; mentioned, professional quarter: in As the Protection higher there of Leerink's exceptional Greg items the Program; bank were services the with incentives and SVB for performance. Paycheck levels at

let's it, million. call represented, $XX that of approximately all So

the million Greg of franchise. baseline it, at the mentioned, million, costs, if range From continue expect $XXX look the there, you're we to So the in of to as $XXX you in invest for quarter.

in magnitude a quarterly in something Protection X% X.X% year. Leerink roughly in the fees the quarter. of $XX to investments. on of we to Program fourth expense strong for And professional operate markets on for and the increase do they the way remainder top order which it million And expense finally, the basis, have So continued about of expect the the just Paycheck is that, the then we for in donation the of performance on between -- think

So Ken, guide looks was like out to, moving all what pointed those that expense the you higher what in a half. lead second the are pieces

it. Got

think this you than sort are core to a a obviously, of activity Okay. than other weaker us I fee yes, are in confidence in a what that the and then expecting. if yours terms income, does seeing about such cards, pandemic? meaningful seems were we draw been the in a seeing other their gives to banks guidance customers your you seeing that fees banks of question, know what are may using rebound you prior lot a just good That the in some that were fee I normal have sort quite corollary Like obviously, and trajectory see quarter it's totally in a you're theirs. an not it of is are which core saying because their most but was help increase And to bit. going core that of it other different your income, granted, second for half more we're And line. fee on But to way different,

add I'll it, to Mike and Ken, take want it. to So might

been of If very over has at the growth. you a growth look lot in core funds our it strong where fee income come by that the has years, client last of driven couple

Now that is rate-sensitive.

So saw the in XX to into do range. the down We that's high going come certainly probably off the that expect point that quarter, in single out we settle digits. basis

client to that So there spread investments, income as is to add continue even we continue that going to we overall earn contract.

in some time, from second So in the to meaningfully those see on small off may cards, to in up. think going the that been the of both headwind. foreign But back the a same We XX% At business that's the range fee rebound going as be exchange activity in continue markets it's same our down income. we're to I in start areas time, the to client pick see at those. fund quarter, pressure

I add? Mike, think have things second I on to how else here getting our going anything look that's don't half. in the to you So if are how we're view to know

the certainly just of mean right? just a say impacting lot are down, economy, on it the business. our Maybe economy, of about, level volume Ken. in Yes. levels think the the activity that's few depends activity let's I a of obviously, to things With

example. -- and cards with of A start use credit clients travel, our a spend credit for the cards, card. lot for of you the that's part credit So significant on let's can the

so too. significantly as well, down And that's

some you picking an So We certainly back depending where other that to certainly, incredible help. shifting if going but we exchange. time. start first foreign travel quarter. spending, take to had we're to Then it's see about will areas they're think up, Though

with impacted well. which comparison impact QX the certainly deal that a in QX FX number investments too, is the as as the from well that there's so QX comparison. tougher And is was And respect having an -- activity, bit to cross-border little less on

and the and that's well So new margins some are And charges well also of deposit, you little higher have plus, becoming earnings as and service exchange some that deposit well of then more rate-oriented. of activity are given too, with are rate-centric again, of Dan pick back returning levels meaning similarly, I offset and we down payment bit obviously too, on transactions. to that's could rates. client it watchful volumes their again, was as But people a down interest the foreign does as but resilient course, higher it's investment getting volumes a challenged to And in back very our hopefully, people resilient And doubt. starting again, covering And bit significantly, a certainly environment, environment start credit to But second again, and to fact are think very the tie certainly with this see nonetheless, it deals, the environment. more the respect obviously fees up. no And in we're in the up all this keeping back is still then But the here. eye. half. volumes

from comes question Demba from next the SunTrust. Jennifer And

those nature Could bit more your on give the charge-offs? on just you charge-offs. little a question net and detail a Just color of us

Yes.

one and And that, relatively in our after before, rest the represented was pretty concentrated about gross of that balance investor-dependent investor-dependent. credit. granular life X/X, another one speaking, million. in almost noted $XX that number sheet-dependent few mainly the And concentrated about loan number, as X/X gross in in science So around was

any more portfolio, your parts regular But at the than commercial other wine your maybe specifically loan that the look from of of look to it's are I'm particular others, thinking any different sensitive you this segments of pandemic vastly banking there it? entire peers. portfolio or portfolio When

Sure.

So probably I our most early-stage I we've particularly, investor-dependent it, vulnerable the end and of think, before, as mentioned would characterize clients. as

serve that noted that come of various the And the a the travel, probably speaking, of businesses we in bulk be that are that. that, cash-burning. our stress. things number case. that will time, periods think hospitality, economic After losses bonus has of most of Given they're like in been same in past, we've disrupted, the segments they're early-stage, where technology there And from in right, industries as historically

shutdown cash think, those of are going stress the and of, some so our expected, half, a second Certainly, have a seen. hanging better or borrowers. PPP in that fortunately been concerned some severely wine either looking over that be that a we than be again, relatively impacted. might -- that cases, And we were mentioned think I of coming so you is number portfolio, the remains impacted. a we source owners uncertainty recognizing reopening But for of wine of parts to may ones severely than And the well, continue And back degree, as would, that terms the expected, revenue, phased far, performance rolling of to very be I revenue, that, with fewer pausing. into speaking, our restaurant to lot that there's again this infusing in of given stronger California wine. now the room And had very tasting second combination in borrowers quarter coupled we would then

from next question Jared comes from Shaw our Fargo. Wells And

help of you it that's some do where severity the when at look early-stage Or of in underwriting, on then -- just still that months you that do to cycles? what's sort could we the past interaction the feel severity was feel also, book, know looking at and loss, where improvements as of and early-stage And of Maybe the potential you you similar loss? as the remaining liquidity of client limit that, far book?

Greg, I'll to Mike, want this. Dan on if they start. or jump Sure. in

into more have, a the see position to PPP investor the well. helped a that about last in place deferrals. to I companies of think is a things think, as that, expenses. put generally So those to think, number way relative finally, storm. we a the stronger, in And downturn, make have of liquidity runway is quite of on And better support to of venture-backed has And liquidity than situation been payment financial good to I front it you lower pretty had, still, on this maybe quick this start. company. global a weather average, in think, reduce loans, And frankly, were recall in right, investor-dependent things I and then average investor-dependent quarter. the deferrals, Companies crisis, happened much in our were, just better good coming to speaking, programmatic That And a bit the combination downturn. then course, I that the experienced second losses reflected average, of seeing downturn

and better. I some some we line. in we drawing why is a second sorry, that emphasis again, So the crisis. differences. on did are, global still to than will And stop there. financial go the I'm part lot had have lot your that And hope a the the you question. I'll do those I'm then one uncertainty, to there's hope we reasons think, cautious of while of a key optimism,

remaining months What of liquidity the the is in year.

Yes. Correct.

We is this here. I'm in cohort, So and than do statistic. global -- better for the going to urge generally not time mentioned reasons track disclosed, from it we'll crisis. I have a financial speaking, But liquidity do so resist the to for that this but say, the again

the trends little know capital great I a looking generally product at landscape about bit well quarters. change fund the as lines, on fund in few dry past that powder call in quarter. funds, That's there, new of the Can new the just there's color. the the as pullback lot of a but competitive Okay. then the And comment existing the I a this on you guess, over formation. formation

add. I'll want to Greg. is Mike may start, This and

of funds we've actually is has things. One talked for couple about, as good. been larger pretty formation, fund a new So

PitchBook and been other from look numbers can actually at You the healthy. we've things that talked they've pretty or about,

And there gotten concern slow have LPs going comfortable firms PE I a was which lot gotten comfortable. a more virtual especially larger, dramatically. to people think, for think I are, down established that firms, was environment. in it this of have

closing good. been pretty actually has the so And

as it's As give effective. overall, along think competition When incredibly competition up, competitive I they've mean, We've the to a about still have of and very far little add teams amount our been market. very, we had a able clients I we way. very, shown credit, been how huge turnover, and we've new

volume So function where just the a is activity we of about from overall are perspective levels. more

actually As at up quarter, we -- held private actually there in beginning an a it decline but outstanding we greater last said pretty that well. the perspective, from be equity thought it -- or volumes would was

from attention going a feel and positioning we to are very about competitive are year, and good balance where the perspective. we're So to about feel of pay where watch but the pretty good we

from comes Evercore. Pancari question from next our And John

half. give points? I on in be that we're up terms can significant would you see I of expect at have a that question elevated where the your some on to just them XX pointing commentary be amount the expect wanted idea level elevated. regarding at basis second be you Would you to the a in -- from charge-offs. you to know if now us indicated I you the --

this one. on Marc. probably It's finish Yes. start and I'll

any topic. materials, that too particular to on there guidance our believe reliable much we is just uncertainty in noted As provide

off to have I question, least would And the beg this at so quarter.

know loan-loss largely that reserve. But elevated, comment, I also, where indicated million indicated you was your to you for. this you back quarter, do that to and went while current the related were indicated $XX.X of charge-offs I this of that Okay. provision reflected detail in I you loan-loss for same And you -- you million, million be do to the $XX.X not of reserved that in that $XX.X -- they're go you the gave that

your not now type seeing that is in charge-offs million? So $XX.X are what were you reserve? CECL that lifetime of What

Sure.

I'll had Marc, quickly rest there's Having investor-dependent charge-offs, outside I rapidly sudden that I we roughly see And loss. roughly falls disrupted. as unusual recognized, that, highly the and that would the think X/X credit it's -- of it's gross and very times. our the one job. So are start. these what I And rare one of severely I mentioned COVID early-stage The disruption. that into characterize charge-off devolve half what of we're all as credits to into earlier, of rest had said and $X is would category balance sheet-dependent million, other there, again, COVID the as, in severe before bar, characterize as I finished And number. characterize arrived would unreserved in is, And at trouble been

these another ourselves X/X extraordinary rare had And would times. situation so way, again, find it's Unreserved that in we said But a with of charge-offs. is been rare. pretty

it. Got

you reserve, the I $XX That's reserve where helpful. then stands know to on quarter. added now, the million it And this Okay.

to wanted your outlook it you expect time? represents get Do around just idea. and that this you I additions credit, any given do an to So here? do mentioned substantially the given what from Or you -- think reserve just at you incremental

not guidance as high degree Yes. think mentioned credit of uncertainty. we I Well, are providing earlier, the given

And guidance by like. virtue difficult look so further that, on to over the of might of any year provide what the provisioning balance

do Okay. but could the also I just level you for quarter, on assets ask credit, that criticized one have changed? No. how of That's your If more, understandable. of

but materials, a levels As remain standpoint. from quarter, low loans the did at note relatively our in historical we increase in criticized

And Chris question KBW. comes from our McGratty next from

Leerink's in the with the terms line. of at profitability should it in revenues that quarter, associated kind million you've in trying of just thinking of in Leerink? bottom It comp range that about are Is I'm $XXX with got strength looked Greg, XX% the what out. call costs the like you about to back in we into kind be the the increase

at number additional -- happy those with least high-level So -- one. capabilities, the really we then -- ago, Dan it's are looking in there perspective. what some is as I'm at there's I'm structures that because great what to earn-out well, pretty is his we a have we some we honest, earn-out there have in very X.X additional consistent We're Number ask share they're two, some seen This deal. ratios the I'm be give were which they're if have comments, they hit. so in you to industry, in hitting them years levels comp to their going have And sign delivering. perform that they Chris, the and going to

these I around think level at it. you're XX% think elevated kind you range of that to when of one probably way we're levels, to that pretax look is at about when profit in it XX%

And a stays it so levels, the if look in revenue, these at at earn-out, even more the that elevated and you're range. with take

been busy, a feel good it's what delivering. they're very, about really from and just they're very staying And which nice, great incredibly contribution perspective So is too.

just -- the drops about add quarter. million at, Chris, million it, first just this basis, looking $X quarter, to pretax Yes. is, compares Greg in and that on to what a to And Leerink, $XX and for

was big a all absorbing mentioning. So comp Greg that's of change, the obviously, but that

capital Maybe just call more growth. the on one Great. outlook for

forecast on on just I've somewhat peers, numbers might a are seen your conservatism? loan of of what in little up, somewhat color kind your activity down. terms growth be of that quarter of drive more Some Maybe side this the to either for

place substantial. size very think is chasing middle-market focused teams think not our about $XX the is they low put what to in the you what This good of what to what staying -- I'll billion-plus, one the category. I'll we're that where of are And have in Chris. the call It's I'll are exceptionally What really at. are that the It's commitments call understand. ways funds are the start, I are margins they're it and Yes.

we So have yes, on teams said these and what's and are job information them, I as supporting about clients. there being earlier, larger for new adding providing loans that But them insights clients, an have. of going the done excellent

to given have, the we're most And so a dramatic in is the -- activity market we going the change -- the levels. really for part, volumes be function of that share

to would continue that historically. just uncertain. up, pick see to back But loan until it's believe we've growth is And you're I we back to consistent so certainly that normal, on as levels a gets what seen say going more that trajectory activity

So very you to want additional have more predict. difficult Mike, -- to it's may commentary. it's some

I some keeping there, Greg. underwrite market I line. seeing the to are the limits and that prior too. comfortable as I mean I environment of well, with, might feel some certainly or think funding true are call mean, size lot higher we don't a a we we banks such to whole as Not versus on how the things that add it be mean doing fund in the is, giving that competitive to you

as we So point different there's too is going to when key continue in doing the clients bringing to They're a But just a well. levels pick the that's really into see new is activities start really variety solid see But to when well things. team And up, the of again, portfolio. Greg's. you're again, of really, strength.

you heard client to funds, want make you the just The did kind the say rate right. range? points I on I basis Dan, fee sure of as XX And Great.

quarter we third single-digit the we head we the expect call that, in into Where it, as and be to high quarter let's ended range. second

And comes [ph]. from Autonomous question Smith our David from last

speak loans, how could at loans utilization trended you unfunded a lines, loss able on how since little quarter gone? the you XQ PE/VC least, Were balances Back committed bit those to the balances? in grow for have despite in your about and the has

handy. I'm do Marc Marc, numbers that? going to to have comment those may that. This is Greg. you Marc on ask have

am on working I that.

So sound off. out voice Marc his is His a little said is -- bit.

actually, now. have the -- they data we would don't right just think I say, I

XX-Q we so on And comes in it out. can see when follow our And that it. you'll up

versus for then like the drove forgiveness, increase? assumption to up went PPP loan And that quarter. that your to what seems in XX% it share can last particular XX% you Great. XX% about Anything

is This Dan. Yes.

amount the weeks I for dollars make going the at be and the the that how and months as forgiveness that have think you line, available more eligible of to and us are for of just there's the the been rules look like that that changing, feel time items SBA extension available, forgiveness. are are

So rationale amount that's be to shift for in the expect that the we the forgiven. reason and the

the for over deal share the sense. terms you of pipeline And in about anything Leerink volume or Makes Sure. two? quarter next can

This is Greg. Yes.

for to anything the banking so hard than out, else. As investment have pipeline very found we almost is predict more

active. to so What function the activity it's it's releases quarter, been incredibly levels. ask I doing, clearly can't the of active. attention So how was share and last very saw people, they press quarter, really when printing. numbers, far, And I a I've to that this said see we inter-quarter me it SVB pay you'd Leerink obviously, it's say you just is think And

it secondaries again, broad life So what's the that a you super do. they're predict to biotech and happy momentum. of challenging we about for really probably lot what what say, is, really they market have. think good I how markets, best market team, done change would share IPOs if happen and public would quickly. us feel still there's as But you in going or very doing, of To I an and the indication with to just with look, speaking, on care, can science a with be the secondaries, the IPOs that's health for very level, happy specifically, to when top that, indicator. -- of about But they've public say, generally try with markets want well would know

Yes. Certainly incredible an quarter.

final our I back the Becker to And remarks. this session. concludes question-and-answer Greg now call will for turn over

Great. Thanks, Adrienne.

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This call. for Thank Thank and and conference now gentlemen. may concludes you you, ladies disconnect. participating, today's you