SVB Financial (SIVBQ) 23 Jul 212021 Q2 Earnings call transcript

Good day. And thank you for standing by. Welcome to the SVB Financial Group Q2 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session [Operator Instructions] I'd now like to hand the conference over to your speaker today, Meghan O'Leary, Head of Investor Relations. you. Thank ahead. go Please

for today. everyone, joining you, us Thank

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

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

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

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

can see from few solid continuing slides, related credit. a of by filed had profitability sheet you ago, balance and strong net and robust announcement growth, income, fee earnings outstanding and we growth we quarter hours which another trends and marked interest income of our exceptional As market

we've open ask sure modeling level our start were next you, all I'm I'll thrilled always as done try to close and our to to into As easier our a acquisition incremental a practice, we When is now, XXXX those included that. and questions. have result our go to we'll breakout growth our July a with overall In of the of expectations little on for wrap we've impact our questions outperformance, about Xst, we lines talking the also up XXXX meantime, for private the XXXX outlook. Boston once Q&A, again lots make our high increased of And as operator We the into our on impacts our of Private bank. we'll outlook outlook, outlook. quarter, for right about you'll

sir. question Instructions] Alexopoulos the from with Steven Our [Operator Thank JPMorgan. you, is line first of

open. line is Your

everybody. Hi,

Steve. Hey,

a all years Greg, doing seen view. the I period? big have of this picture the dating the with you you've this, back In pre-dotcom start to business been strong, even wanted to ever

short - but our no. Steve, and the Well, which the a this over is. focus and back of our the goes answer And talked have what I lot you basis to is about years, business

ended clearly, technology market as So That and the being be we incredibly And of life can for focused half economy. half other flowed you from been said that. standpoint, down that, into. issue But my perspective growth from a is from a care technology time. the really in are thought a we we've on of especially growth, and we're a was benefiting exceptional. really a best and taking and over period slowed going lot really up and lot global are of then health people what investing And sciences, investment - from catalyst the that brief of perspective, XXXX, the being really alternatives the was to of believe always money first strong it into see, the for second It has market. an be XXXX. an during exclusively for the really And to innovation there in being when pandemic, for is weren't market what really

the off continue proceeds? We coming is how up new rounds larger much is a from the IPO parking new know we total sheet proceeds, If IPO lot And helpful. much customers That's to basically? should how funds, look growth balance this? client just Like how and Okay. in we each about just customers? go at think quarter. becoming And basically, for is

Yeah.

and me Steve, But the to to want actually may growth it. start in balanced. add answering, then been Mike I'll pretty Let - funds has

activity it picked been up of public has has a more it So second catalyst obviously than because the IPO been in and quarter. market market the

So percentage, the Most adds clients is financing. XXXX clients come existing to rounds financings huge But that at but raising mostly, the has that early then of quarter, coming biggest driver existing from the of from that's growth a a we new increasingly it's added not from given And clients. stage the new larger percentage. it. clearly, in

Okay…

think go the Steve, we best engine, Greg is quarters well, one just bit to this mean, what - out clients, we about I maybe of new I'll add a new is new best our it's And acquisition record there. of in as hit of too, back color client quarter, saying. to acquisitions. obviously like the When little client terms

for in a taking. keep and couple to their months thing new, lot of so up them mind, ramp to really actually deposit the to a Now start of those it takes flow are new,

So powder I crossing dry good it's terms is And gives to know, you're what down you flow again, whether think then the then just back was you're going going in three, the B.C. about people seeing returns. to an talking into engine but a flow, here that as unprecedented seeing, more five, on mean that this four, it activities, start and of and road. about is the it earlier you what like [ph] months great Greg feed the seeing six sensational, They're over also of as

Greg dropped April. the acceleration funds, funds wealth investors, You as that COVID, is into you formed. non-traditional of And it. ones, know mean in up are see the of back lot have well, models venturing is the phenomena is just pick that what of saying a sovereign and going being a to corporate back going have you lot good because this ideas SPAC as business the too, phenomenon started there well, I it to I again. down

of attracted that's have a talent being You lot the good to market.

strong now. incredibly tailwinds the right here doubt, no So are

Okay.

your and this recall part second which rates Steve, a it just to low back too have from level. where a very question not And will when there, going? you is when you were is rate long at very, had ago such a You low environment,

- in You end XX-XX, there's have balance sheet, spot really balance you where about starts ago. for in rate environment. it's and little this sheet. to sheet. rates was this way and up off not up, off be you the to that or we're balance of nothing start when that that between But move going get of right yield long again, very off low And more because now, future, pick can to foreseeable it's this on and it kind split And

I to a expect be. So where good think to it's gauge they're going

is It that Greg, just the off balance it's for doubled. quarter? sheet question - a last on fee higher Dan, final almost Why why expected benefit and the has to rates picked much from maybe compared has this looks income Thanks. the up on point. so like

why don't Dan, Yeah. you go yeah? ahead,

Yes. Go ahead.

a funds. you Steve, some in step the negative back happening, the actually and So been sheet about spread the client repo existing off eating And result, been of have take what's if balance that's throughout rates think as quarter. been you a the

of see funded interest fee on we a in into next during going positive reduction and should in client a the at that excess reserves small the margin is development one, increased, income. quarter has the improvement quarter So the the bottoming so least

think the we've driver, that's and hit So the bottom. I

for questions. Thanks great. Okay, my taking

Yeah.

The question Poonawala line next Bank the is America. Ebrahim of of with from

open. line Your is

to Good afternoon. round on I question guess, just deposits. off Steve's the Dan, out balance sheet

that basis first XX the contractual or bps bps XX points the hike. immediately? rates your if the You for XX in should up, X happen at this expect first point, reset we will slides go mentioned Is that, to X where

points, There the be give depends some or Yeah. up blend - once where basis we That's so. situation. get But XX the those We may that competitive stretched that's structure of return. a products. to contractually, point it on basis you

then at bank in terms it. there, and throughout what Boston the in you letter, color of little more if investments year? was and next seeing can your give accelerated payoffs, around talked building investment the about these Got both over a you're I you bit your and with the terms layering I guess slide Private of plans wondering in deck, Greg, investments, And and out

that. Yeah. to XX, What on of different we the so just all areas broad in on it's a tried pretty slide do a where Ebrahim, portfolio. and investments, is describe breakdown jump I'll see we

You about banking. is two investment One asked specifically areas.

it again, want areas. didn't and and we health day as people, they're of out in from we actually and getting now the basically building the out our platform And the definitely technology we this care, we said a health this care is incredible Health would a And just One accolades, so I've I moving They're I And about Blake out would and other the is wanted other banking team. XX say services a investment world building Barry stay times bank to They're to life that couple the up class last tech, and existing across sciences and health onto said world of that care we exceptionally services brought tables. Leerink lead well. say doing bunch in which we things months, said, that. area. many over the business class side. brought - build into a investment

that clarity the stems opportunity. with August of bank August I a those technology to have relationships share to you in a market then big expect into banking. is which leverage relationships fit of would say, lot And middle more the investment we there's is core clients. hear are. give from we on question, And deep how it that. business, But no believe, The the to So it's have, announcements really a just and we're, us around we from formally natural or those commercial middle the this

and financed. going be big to it's traditional to it, going going brought. be be It's ECM. to be that's - to driver sponsored, It's Being also going of M&A. So a

built all so to be be expect And built those businesses out out and this later year. we

Now start core we and $XXX but that roughly the look year, low make pick growth. maybe it's early, the market be how side. to business, that maybe early, up, from that to perspective, or to health banking. see million the dictate more care I a get technology think new really to up from we of the on come expect, revenue business, fast and again, this health to care banking teams it to that going speed, would initiatives back What revenues pick next very it's would on the But could with to both up $XXX investment additional million. on like? investment is And going we're nice along expect that up year very expect money we end, to our from continuing return services although as the

take banking. And our on back to as Silicon private on really company see upsized strategy, what which bank private that's that was that, the to the and slide of I just capabilities is our in again, are. on of is you question the is. about how we're And out to headed a SVB private XX, to would catalyst really second Valley lays closing Your really and Boston clients the And important strength Private, bank go Capital. that and the really introductions the the a can and with where dramatically to Bank XX, then Leerink slide you've

first clients, were meeting, just the our our we to set entire and entire in Board product it's have today really at the care now, product we take set the a our of history. So conversation time having where

to expect first for we forecasts business. then XXXX. 'XX. that the take a So And those into we and balance you next is we expect forecast do, hand built our give growth as of growth always look what start of we'll That quarter, then nice in in

the days, more come So in next to Ebrahim. XX

a just the existing I'm Or one around wondering one entrench NASDAQ tool? you where clients? that market that further it. private one investment. your Got relationship is your quick investment. that just And acquisition Is the on with process client thought

primary for you be liquidity, one-stop to believe they're primary one we driver. matter banking companies longer longer. are and of the that the staying those to of We've NASDAQ to shop. needs about take think want primary But driver? the all that's market is private were allow to said time care what's commercial is private, to true. staying sure companies no this that's helping when access say, we is solution catalysts to want the are. private the have But And investors built liquidity. going what the be great employees along, making stay The that. We private clients, and to consortium if you this length a being have And be of our driver able both They're to Yeah. clients

So be of solution we've And we've kind that for made, that benefit. will very laid in a other highlighted - clients. we've be excited our groups it other investments to some as the to out of

bank So look Leerink, benefit private to will the then to provide looking platform stock these will investors liquidity of individuals. the going clients more who who or are because are being individuals the from ours. the have sell to to to private SVB companies that be purchase they're will able who generated of

so our we again, for clients, services platform. And the believe it's it but whole

taking questions. Got my it. for Thanks

Yeah.

question Ken Zerbe with line next is from Stanley. The the Morgan

open. is line Your

Great. Thank you.

Ken. Hi,

the start Maybe to evening. good start guidance. off off Maybe with - good morning,

NII in increases. yet, in up but for there's investments expenses rate. Was a the the months figure feels originally In like mid-XXs little haven't to I'm like increases, terms growth core intentional additional higher beyond the that expense revenue all made are the just the fee quite seems the outlook maybe run ago? or out three like like what terms of than - the you thought expenses, trying now jump numbers being and it like a I you're think I looking

and So the What I Dan is Boston I'll then know into would at detail. a look of more will Private. get Ken, start, pre-integration lot I

we into is I said two expenses my And of opening areas. down things so comments, as did, breaking different the one in the

the and area. expect biggest part things. making And this an the in compensation, those investing are - the for paying banking, investment business, we're incentive the is banking performance. to technology of for we make Part is investment third two so And in one of so in this the And banking. investment relates investment so to specifically

those how break turn to XX, would give I'll slide it where have tried But to that's you different detail, kind So down. it of you sections. detail to We that Dan. on more I over give

to Yeah. Ken, offsetting. it generally speaking, should pretty be close

page. those increased look you annual XX%, that Greg our where and costs, we at expenses. are. clearly integration everybody excludes at There's so lot to areas by is on detail and bit and and this guidance, Boston quarter, QX Private in just least a If that going QX, on for a through little outlook going those went on more And give we're same the

we of $XXX in then And the be restructuring a restructuring. range million excluding higher. banking the including So includes $XXX Boston in QX, million our to QX, $XXX a investment the that's team but again, million. into and expenses of Boston Private quarter significant million in will because elevated to the QX back Private be to range recognize is that to drop amount excludes that the expect $XXX And tech I'll likely going charges.

that's integration to pretax is, would give QX. think least the where at that should we coming through pretty of QX guidance. be to we XX% in going look to come in and speaking, within When run largely we in investment you XXXX $XXX the the your sense to restructuring rate that and a at integration excluding QX. question, increase the So million offsetting of the the about restructuring that roughly roughly costs, costs, XX% original with of close But back

Understood. it. Got

really year? Okay. the Or banking that also of the or And numbers? in next does that up associated then is pick revenue more investment to the revenue start technology piece, these

in a of second expectations de the Ken, half bit, There's little year, but the it's a for number. the minimis

things then to the do it team generate it if But revenue. So we've play in August be in a work got to again, be out, happens, which of if the the comes, possibility will ground to second and start the half if hitting will is upside, it year. all

a of So of investment health why a some to technology tried revenue. high level this generation a banking from give range, like XXXX idea is and I very look that's banking range what services investment care could and both from

Got it.

Okay. ask one And final I if then could question. just

that? just I I about it your Can you more splits you just don't portfolio like investing saw quarter. - In you. terms terms it in duration this wondering obviously, Is added, $XX out? billion of you're of I'm what know, Thank including securities how in? securities, talk to

Yeah.

adding, as issued small securities, added as vast as corporates We So we're what agency of the a backed backs, we're some the quarter. of commercial mortgage well bonds municipal adding amount well. majority in mortgage

products. adding, wise, speaking, X generally duration that's spent of of in where duration in we're most out So adding that time quarter. those the kind in to year We the X

And the to bonds. pickup portfolio. where acquiring, buying the we acquisition of also least in in So yield. work treasury had that's good about billion at shorter much dated sale a you're we're available municipal the quarter seeing in $X When We're put securities. just we for the

we picking sure - out highly Ken, obviously in, liquid perspective, money ton a with kind to up that that on of making or of on think the a book. the majority we're So when held part the investment to all yield an making purchases not build to substantial just all-in there will basis maturity. securities ahead, today's our we're environment XXX to put based a purchase of we work, XXX in high the continuing from the vast But yield looking be

just that on X X So rates. based I year today's think duration to

Thank All very much. right, perfect. you

Ken. Thanks,

from next Securities. The Truist Jennifer with is Demba question

is line open. Your

Thank you. evening. Good

Hi, Jennifer…

is operation Just may on – great the want a there? a Boston the can when you sure you key know, that running retention great you packages guys can for make that, quarter. us my to place to? in hi, on Congratulations on Private. congratulations And put you question ground of wanted hit remind Greg, employees

yes. Yeah,

call I'll there's to million great think So But $XX ways it, in range. it did retention. $XX also it's many about putting the, to - have in there's was retention question. and packages We a place, million

options acquisition that secondary the and and savings unique. we objective. that, of the It incentive over that, of things the to objective private for many to So of the cost as the Boston retention. primary what bank build the And part of was and the in on are it like as would be continue is, Private, reason adding third the in our given had one part price, that appreciation what to times, we is - a were wasn't about kind then it or something even rolling the other had stock invest building money said they again,

- when talk if And be level you excitement. want of are a down so were that high over, platform. of they to coming part the and employees sit to you to this There's

I think think, the XX% an perspective retention so coming think it number that from I saw, over. I was far, employee I

about and And feel So time and spending our talking and we getting very good together optimistic clients I as that it. feel together it better engaging we and about closed really The both even we're existed fit. this that feeling we're people Private talented private cultures group and on together the for of our are to good Boston going bank run. long people keep and that before more

is another that acquisition scenario there bank you? one Greg, something Is SVB? see else for where fit to can could there any you

start think to I was We talked - didn't we've over with. there Jennifer, years. one about the that

the came fit. That's one the about years, could - Boston only many for and fact had true. it that of one we So talked that a that something was Private many, maybe

RIAs. to really four right bank now over about I to looking that say but and around the would never, those platform at But inorganic, be all do the feel good you anything in that we opposed If So at have incredibly would short could we [ph] certainly were is where time businesses. as things the material. acquihires almost run. not it We never more some as additional private unlikely in anything look it's be

is business to be we you likely. And so least point have, key final of the core that don't our growth And when isn't and now, look the acquisitions at right that part at just a our growth. need

okay doing on think I we're our own.

much. so Thanks

Yeah, absolutely.

from question Research. is with next Wolfe Carcache The Bill

open. Your line is

bank. to changes of biggest bit ask a you face a the guys if Hi, III expect become some give little when you of thank Category you. to could additional wanted you on eventually color I

overall, of and and would at Yeah. level. want head on the But high I'll the crossing us. I had We LFI get and requirements add and to across for expected I should III, building we start plans facets a around When are around isn't risk know it. to is status. raised will that. capital all And sure controls. Dan - the liquidity to groups bar commentary working some a that. be certainly what Category We Dan into you a that to say, this we're And surprise the

for at and ready we areas at end, preparing you we But do certainly context overall and Now two Dan, we specifically that hard for in are add the but liquidity more biggest and controls. faster is for it. be the working in that capital? it than need getting and became to want expected to ready were to just risk it

annualized other two the exposed on to for the liquidity daily able areas, basis. be requirements, be the will Yeah. process assessment I the and and The a required and requirements, be having go Level going on to a the an systems - ratios Greg, think a you Under the X of at and X, on big that to forward basis, we'll effort part picked are be that looking a Level both liquidity But X. to Level stress focus under basis. supervisory testing

sheet fundamental looking long we look at and and significant hold going liquidity and a that Category as the changes. us will with Category and IV see at III XXX% I to a that hold, of don't like. forward. we'll to think I a way And structure, they'd I the just institution we time, go serve financial securities looking at what ratios, As our come over our step balance back capital But grips the look

at lines. costs think we've when of around risk the along look in those And the embedded guidance practices, those lift XXXX. our things and in I risk, is we majority So systems we where here are

thinking how how speak whatever securities covered. incremental you positioned for But positioning the hedges, just for And My other you. you one Very taking? end about to just guys you're ultimately overall questions rates portfolio, helpful. can were up direction last and Thank have me.

Yeah.

So it's Dan.

we to much at since sale, X bank's shorter agency backs, year for to securities haven't part invest investment a yield the of the risk securities continue changed capital buy that and it about as ago, we've months securities for in to duration. last CMBS, protect and we as there mortgage the X than and to bigger And OCI get, it, think available look for I positioning excess the sheet perspective. and liquidity balance municipal in us safe let's today shorter the was to portfolio a XX quarter allows to work of thought money to treasury same in as can and been continue portfolio, and bonds possibly good call from the a to it and really at continue that, put available-for-sale time,

So from call today's year. XXX that's rates the that the, in translate how for really hope XXX look the strategy let's perspective sense. some of let's XXX at the that's at But it, rates today to see to XXX improvement we makes at going But we here. to based to in rates, - purchases on think remainder see least

taking Thank questions. for my you

line from KBW. the next of The Chris question with McGratty is

Your is line open.

afternoon. Greg, good

Hey, Chris.

moment. to come for strategic Greg, more that looking just at appreciate on a I'm I'm certainly looking, Private, I back was the deal XX, than Boston financial. Yeah, slide

and was in recognition customers - sooner? of Thanks. market. interested, tide just guess role of challenges Boston covered the I You I'm referenced bring can your how years, I'm flows. over the kind time I for and turn I'm billion the of $XXX one opportunity interested that in help Private revenue perhaps that [ph]

you our time lot wasn't It their it's you that he question, on brought question the a market? that that's Boston was space. creation his other target it very one the going a Anthony think the board capabilities. I what of table group wealth market, to on that was all people Private, plus groups great And and wealth is of target And creation time after. that And a add time we're team to be team target that market to and value of to the they specifically banking a after, going team, and to banking a teams. We understanding spent we competitive is about we what in and and things as same I And now a deal traditional did private going said, need, is a It's a take speaking, we at, that Yeah. most question in them, wealth care when me, of of existing like you to private spend you able combined the flow of no Chris. of exists as the individuals we're the you're early look cycle team them where your What one. bring generally add their as the evaluation. actually, at believe lot

we definitely only a have talked you been to this are a on We we a you, few energy, bullish I on. combined a the of they tell our lot would out. prove and tell was it's people early, prove it's what I'm of to excitement to the that weeks. would what I and the though private there did got and of lot been we So board even that now part very for, receptivity were out. to But bank, of on quality looking research. and that's it, high clients very

thesis, to acquisition out. So the that the thesis, and prove us was it's to now it investment up

That’s Greg. good color. Thanks,

Yeah.

Evercore Pancari from ISI. is question of with John the next line Our Instructions] [Operator

is open. Your line

afternoon. Good

John. Hey,

team clarification. expected, or hiring an about in - on or hiring terms primarily On Just that's one investment right, of acquisition? organic, organic, your the just banking tech quick announcements not talking that's to confirm,

be all will It people. all it's Yeah, people.

Okay. Got it.

higher confirm. specifically, We more on then bit to to environment. I higher little I your Okay. earlier business, thoughts your an to from And bank inflationary a your the level, just secondly, get to impact but wanted how ratchet wanted impacted. just expectations in tech and quarter it hit in came the sector SVB about a on would inflation and took questions And be in hit, saw the general. a stock with took your

loan given the of from rate inflationary and a view an you negatives biggest negatives asset Aside be sensitivity, be So of impact Would potential - environment? action, to tech from on discuss growth take seem positive in would pullback Fed your your the can in would environment that. the would warrant be what in from or I wanted higher a the your business your to a factor be get credit? sector? business Or it volume to bigger the

in positive significantly So also the question, would the is based funds. the we the fee the well dismiss of on several those would I interest but to expansion, from additional of John, get benefit want basis expansion got actually size part, increasing the part as we've we I rates. the net And appreciate the that first and income because of don't deck the question, portfolio which show slides points the as

move risk? be warrants. So I past too one of But and that To to there don't want could in securities the me, areas quickly. is where

risk see there. could You

an stocks. could pace investing think people in which the be there rapid see very, to as to You a may slowdown been very high alternative in of growth very, has start investment,

greatly at outweigh the why happen. are least think think to benefits But the I could going negatives. it I Here's I -

is over massive number number last the capital has months I amount it this is although the space the I where when things XX at in have to many that's $XXX it first a half, year, times, look think compared it's money is again, and number, that, that repeat big to have innovation been. And place a one going to of the into the billion of this venture you this showed the be.

flows, the small So think It's when fund number a about to you global and still relative right? that number. market

way, bumps believe venture funds into to still to and flow the be still or that we we and I innovation And is longer, bigger target get can bigger. be the up is as along going will that only capital right. while and will that and get there getting market that support So only companies available bigger, market the

number. on things that second And the is and mean said, a that. the and volatile so I And we've gains like warrants that's as part securities

saw you M&A. see IPO You do attention believe But start pay start to do IPOs, attention M&A. to think down, going actually, I slow have more to I you're to if to pay to to have you

investment about nice it to is does on slow, that, be we up M&A both having banking And and if so ECM M&A, that, pick will or up. to starts side hopefully, that business what's expect the ECM pick

are those if that would pay the going be be market I'll I but it's in my pay to be overly I some something give modest. something believe opinion. to attention again, fundamental see So own think think to it's that's I which to, is, don't to, attention going inflation. of that But if cause they'll inflation, then we as change actually bias, my do I don't guess be things to And significant just spooked. mean to get would it's final, just a level I and my

just just way generally on portfolio us just Can some you diversification? the tech grown, diversified And you. Greg. concentrated believe, originally, That's lastly, concentrations very help science. us more But in portfolio? you've life within become helpful, can talk call by then with Thank much you about the the know, I and industry update to it heavily or just capital as it's was industry. I

I so I'll down Slide go in Relations on details. We But would Yeah. give that and and information look actually the into great Meghan quickly. our deck, Investor take the team, to going XX. through you because it is break included credit a wouldn't Anna expect I at and

you So by largest is then sciences, and consumer. XX% is way would And work you have next debt be industry, around technology roughly - your one life the funds.

it's is very the underwriting, approaching that's that job value, after strengthening in great part it of. adding this a such industry are that a of LPs we're part similar the market, more segments done of really market, great credit and because go and a of team has So broad And fuel growth. the swath been

Thanks that that. the years what one was was on current? X got for And X that's XX% last clarifying it technology ago? look to then like was ago, mix, it. years one What mix What

or top the But off I'd probably You to head. I were you say know, have my closer probably if maybe speculate, to of don't that XX% XX%. I were

my you taking right. All Appreciate Okay. it. Thank for questions.

Absolutely. Have day. a good

The the Wedbush last Securities. David Chiaverini of line question with is from

Your line open. is

up, strong pro light the you your leverage growth? impact had your comment follow could Boston question Can your the needs of forma in capital you a And ratio I Hi, capital. comment on as acquisition? thanks. on on a from Private raising on

start I'll Dan. then is Private's question This second get Boston impact. the with and first Yeah. to

you two generating, And about an think we're north we one, from when So XX% think really about profitability capital, quarter, just of things. a we in ROE the saw it continued perspective. that strong

strong strong forward. growth balance growth cost that And second, support we're So of clearing going sheet with capital. the certainly

to growth this the that quarters three four the on pay to seen over attention we that leverage most, X which our ratio the Now exceptional last bank. put the Tier pressure continues ratio to is at we've

day for If client the you growth. key. We've holding been and is about think liquidity all talking absolutely about the about profitability a it us it,

us clients, holding to long-term those For profitability. really key with the deepen our is to deposits our

leverage through quarter, senior perspective, a Tier really additional that transaction that the debt capital from preferred in raised ratio. markets capital and and help X we So support

So cost the transactions been to capital providing growth. of excellent markets allow that have very us been low open regulatory to have us, to those and continue

that is to at we need an So open capital us. on seen it if playing on all the do That really from the measures, what a And On to and and thing second last perspective, substantial good low We determined And securities our that we would to the balance end do Boston be support that the deal the confident sheet, quarters, XX% we're that in based really to growth. the accretive options capital your the It question it shape. was ratios. company. capital a transaction Private. provide the overall, said, or and ratio considering The way. support, we over accounting risk continues, think of but going be purchase we've accretive where pace levels to ultimately, good on capitalization would growth continues with with is as Tier that growth confident played to quarter their is the X overall. well growth that that, at going be rate that and leverage, We it a liquidity significant are capital core based four we're not to risk have to we're a as really amount out out. at

be position. slightly improvement, accretive to So small the capital a there'll overall

much. Thanks Great. very

turn the for call concludes the that remarks. to Greg closing And Becker session. Q&A back will I now

Paul. Thanks,

We're want thank new with area colleagues is joining our Boston for Just obviously pleased SVB. our wealth of focus banking from today. a us. to to for pleased welcome obviously everyone to us results, critical Private management Private and even more

banking, care focused them. best our with pull to strategy the for the the our they're the our how partner possible basis to along on banking We're four going and to you're making is work incredible commercial Capital. SVB and being execution of taking of of strong build and safe four more a how future story these and clients, we more all really of of at thinking right doing thing pillars our believe for And our office employees. our approaching And investment return we're together hear sure and key about informs with certainly and One while that pillars that employees about SVB what we an to quarterly clients. on

to flexible clients, honestly, work to best the the clients be advantage to We've for flexible. for quite our is and office going right that to work our now. We've be SVB we listened return that and for doing believe be employees. is of we're future at us. And trials to one be environment them competitive listened thing going a a going to the best is our So and,

I us want it, of the thank done, always, it come they've months, every and for lot, great and XX more reason incredible a Thanks call team. virtually. a And to it have work proud our great our virtually a what to for out amazing I'm go. done doing last few how to albeit, to a day, they've months As so like and giving looks day. clients for

today's Thank for joining you conference call.

and You Stay safe may well. now disconnect.