Welcome to the SVB Financial Group conference call. My name is Daryl, and I'll be your operator for today's call. At this time, all participants are on a listen-only mode. Later, we will conduct a question-and-answer session. During the question-and-answer session, if you have a question, please press star then one on your touch-tone phone. Please note that this conference is being recorded. I will now turn the call over to Meghan O'Leary, head of investor relations. Meghan, you may begin. Thank you, Daryl. Hello, and thank you for joining us today. SVB Financial Group's CEO, Greg Becker, Chief Financial Officer, Dan Beck, and Chief Credit Officer, Marc Cadieux, are here today to talk about our announced acquisition of Boston Private Financial Holdings. Today's news release and the slides we'll be using on this call have been filed with the SEC and are available on the investor relations section of our website. Before we get started, I will ask you to read the important information regarding forward-looking statements and use of non-GAAP financial measures on slide two of the presentation. Please see the tables beginning on page 16 of Boston Private's latest earnings release for reconciliation of the most comparable GAAP financial measures to the non-GAAP financial measures used in this presentation. Now I will turn the call over to Greg Becker. Thank you, Meghan, and thank you all for joining us today. I'm excited to announce SVB's acquisition of Boston Private and to welcome employees, shareholders, and clients of Boston Private to the SVB team. As we've outlined on slide three, the combination of SVB and Boston Private will significantly accelerate and scale the growth of our private bank and wealth management strategy, expanding our assets under management exponentially, advancing our expertise, products, and technology, and providing the opportunity to deepen our client relationships and capture a larger portion of this $400 billion opportunity among our clients. Boston Private is attractive to us for many reasons. It's a premier private banking and wealth management firm with outstanding Net Promoter Scores and a strong client-centric culture similar to our own. Boston Private's deep private banking and wealth management expertise are backed by a comprehensive product suite, a next-generation digital platform, and a presence in key innovation centers across the country. Under the joint leadership of SVB and Boston Private, the combined platform will give us a full complement of people, capabilities, technology, and scale to meet the personal financial needs of our clients. SVB will benefit from Boston Private's product range and technology, while Boston Private will have access to SVB's expertise in the innovation economy and the clients and high-growth opportunities presented by it, including unique investment products offered by SVB. Boston Private's clients will also benefit from the power of SVB's larger balance sheet and financial strength, which will enable us to drive growth, support larger opportunities, and attract top-quality talent. We'll be acquiring Boston Private at what we believe is an excellent value for SVB and Boston Private shareholders. The transaction will deliver strong financial metrics, further diversifying our revenue and enhancing our profitability. It will be accretive to both tangible book value per share and earnings per share. Moving to slide four. SVB's strategic vision is to be the most sought-after financial partner in the innovation economy. We believe Boston Private will bring us one step closer to this vision, enabling us to deepen our personal relationships with clients by improving the scope and depth of the services and expertise we can offer them while leveraging the value of our unique networks and connections in the innovation economy on their behalf. Whether you're a client who's growing a business, accessing capital markets, searching for market insights, looking for investments in the innovation economy, or planning for their family's future, we will have them covered. Turning to slide five. We view SVB's private banking and wealth business as a key source of future growth and a critical need for our clients. Our innovation clients dominate nearly every published list of the fastest-growing, most successful, and most promising companies in the world. Companies in the innovation economy enjoy access to extraordinary liquidity as a result of robust funding and exits markets. The individuals associated with them experience dramatic new wealth creation through the same liquidity events. We believe the existing potential total client position, that is the potential wealth management assets, lending, and deposits opportunity of our clients, is approximately $400 billion today. The wealth opportunity is expected to grow twice as fast as the rest of the U.S. wealth management industry. We see a tremendous opportunity to deepen our personal relationships with clients through the addition of Boston Private's expertise, products, and differentiated technology platform, and to win a much greater share of the considerable wealth market tied to the innovation market. Moving to slide six. I'd like to go into a little more detail about why we think Boston Private is a great fit for SVB. Boston Private's outstanding reputation and exceptional Net Promoter Score, which is almost 2 x the banking industry average, stand out in an industry where excellent service and reputation are meaningful differentiators. Their strong scores are a direct reflection of their approach to clients, which, like SVB's culture, prioritizes client outcomes and personalized relationships. Boston Private's product set is robust and includes capabilities that are increasingly important to our private banking strategy, including tax planning, trust services, philanthropy, and estate planning, capabilities we would otherwise have to build over time. Boston Private has recently invested significant time and money into development of a next generation digital platform that enhances the client experience, streamlines processes such as onboarding, and is well-aligned with SVB's own strategic priorities. This is another aspect of our private banking and wealth management strategy that would've taken several years to build ourselves. Boston Private is well-respected and has a presence in many of the key innovation centers where our clients are located. The firm has long been able to attract talented wealth advisors thanks to the reputation and expertise of its executive team and the quality of its client-centric culture. We believe their culture and values are a good fit for SVB, we are pleased to welcome the CEO of Boston Private, Anthony DeChellis, who will jointly lead this business with SVB's head of private banking and wealth, Yvette Butler. Turning to slide seven. We believe SVB's leadership in the innovation economy and large balance sheet, combined with Boston Private's product set and technology, along with complementary talent and offerings of both firms, will position us well to capture a larger share of this compelling market opportunity. Boston Private will add significant new capabilities to SVB and strengthen areas where we are already focused but need additional investment. Our combined private bank and wealth management business will bring together SVB's robust lending solutions and unique access to alternative investment opportunities with Boston Private's comprehensive products and advanced digital delivery to provide the full range of capabilities of a premier private banking and wealth management firm. Now I'll turn the call over to our CFO, Dan Beck, to discuss select financial highlights of our agreement. Thank you, Greg. On slide eight, you can see that Boston Private will create an immediate meaningful scale in our private bank and wealth management business based on September 30th numbers. It will increase our assets under management by almost 12 x, nearly 3x our private bank loan portfolio, and result in a nearly 5x increase in the private bank revenues. Slide nine outlines the proposed terms of the acquisition, which we expect to close in mid 2021, pending the approval of Boston Private shareholders and regulators. Based on SIVB's closing price as of December 31st, 2020, the transaction is valued at approximately $900 million, which represents approximately 4% of SVB's market cap. The transaction consideration consists of approximately 80% SIVB shares and 20% cash. The total consideration and consideration mix may change based on the value of our stock price at closing. As you'll see on the slide, we've made a number of appropriately conservative assumptions about the transaction and anticipate the financial impact to SVB and Boston Private shareholders will be positive. With accretion to our tangible book value at closing, low single-digit accretion to EPS, and an internal rate of return of more than 15%. Note that these metrics exclude revenue synergies, but those revenue synergies will be our primary focus and will drive additional investment in the opportunity and related growth initiatives to significantly deepen our client relationships. With this in mind, we expect restructuring costs of approximately $200 million, primarily related to integration of SVB and Boston Private technology, infrastructure, teams, and offices, as well as investment to drive future growth. We believe SVB and Boston Private shareholders are getting a financially attractive deal with significant strategic upside. Now I'll turn the call over to SVB Chief Credit Officer, Marc Cadieux, to talk about the loan portfolio and our credit diligence. Thank you, Dan. Turning to slide 10. Boston Private's four largest loan categories are residential mortgage, multifamily, commercial and industrial, and commercial real estate. Boston Private has a track record of solid credit performance, and they continue to effectively manage down the level of COVID-related loan payment deferrals in their residential and C&I portfolios. At the same time, the company has approximately $1.4 billion of commercial real estate loans participating in its CRE Second Lien Relief Program, and approximately 11% of their loans are in the hospitality and retail sectors, among those hit hardest by efforts to combat the pandemic. While there is strong pre-COVID loan-to-value coverage in Boston Private's retail and hospitality segments, a great deal of uncertainty nonetheless remains. Having said that, we have done an extensive and thorough review of Boston Private's loan portfolio, policies, and processes with a particular emphasis on the commercial loan portfolio, and we are confident that we have adequately assessed the risk. While the eventual expiration of Boston Private's payment deferral programs and CRE Second Lien Loan Relief Program, which is scheduled to end by mid 2021, may lead to higher non-performing loans, we expect the non-performing loans that may materialize will not result in commensurately high loan losses, as reflected by our 2.25% credit mark. Now I'll turn the call back over to Greg Becker for the last few slides. Thanks, Marc. Turning to slide 11. While our due diligence process was particularly focused on credit and balance sheet risk, it covered all aspects of Boston Private's business, including culture, talent retention, and operational risk. As a result of our thorough due diligence, we are confident in our transaction assumptions. We've done extensive work determining the go-to-market strategy and how we'll deliver private banking and wealth management to our combined client base. While we expect private bank lending to provide immediate revenue synergies, we believe that wealth management synergies will emerge over time as we integrate our offerings, leveraging our compelling combined platform to attract more advisors and continue to grow this business. We estimate our adoption of Boston Private's advanced digital platforms will accelerate our technology development by several years, enabling us to offer a next-generation user interface and efficient back-end systems for both private banking and wealth management that will drive additional growth and profitability. This effort will require trust and collaboration between private bankers, wealth managers, and commercial bankers, but we believe our cultural alignment and a shared client focus unite our visions. We will apply the lessons learned from our successful acquisition of Leerink two years ago to establish a strong engagement model between the new private bank organization and our commercial bank. From conversations we've had with employees of Boston Private and SVB, it's clear to us that both teams are equally excited about this opportunity. Moving to slide 12. We expect this transaction to be positive for all stakeholders, not just for clients and shareholders, but also employees who will benefit from strong alignment between our cultures and the opportunity to grow client relationships in our communities, in which we will continue to be involved. Turning to our last slide, 13. This is a financially attractive transaction that will significantly accelerate and scale the work we've been doing at our private bank and wealth management business and enable us to pursue our tremendous growth opportunity. We believe SVB and Boston Private bring complementary talent and capabilities to the table, and the combination will significantly benefit our combined clients through product synergies and an improved digital client experience. The acquisition promises to be accretive to tangible book value per share and EPS while diversifying our revenues, enhancing our profitability, and contributing to our long-term sustainable growth. We're thrilled to be embarking on this journey with our new colleagues at Boston Private and are excited about the many opportunities ahead of us. Thank you. Now I'll ask the operator to open it up for questions. If anyone has a question, you can press star then one on your touchtone phone. Once again, if you have a question, it's star then one on your touchtone phone. Our first question comes from Ebrahim Poonawala. Go ahead, Ebrahim. Good afternoon, guys. Hey, Ebrahim. Congratulations on using your currency, and it's good to see a bank do a deal for growth reasons. Just in terms of the deal, Greg, I think every time you've talked about M&A on the wealth management side, I think it's consistent with how you messaged for the last few years, both you and Dan. At the same time, I think you always talked about your focus on clients within the innovation economy. Just talk to us in terms of how Boston Private's, or the makeup of Boston Private's existing client base, how that fits into that strategy, and should we expect or do you assume some attrition as a result of that? On the other hand, also talk about just in terms of the growth. You talk about the $400 billion target opportunity. Just tell us in terms of how you expect in terms of strategically going after that, how quickly some of that can be achieved as you think about the next few years in this business. Well, Ebrahim, I think there were about six or seven questions in your question, I will try to go through that as best as I can. Let me start with this. Our focus has been and will continue to be on the innovation economy. That's what we're known for. That's what our brand is all about. When you think about the opportunities ahead of us, first of all, we're looking at how do we build out our private banking and wealth platform in an accelerated way. To be honest, there are very few opportunities out there that are exclusively focused on the innovation economy. We had a choice, at the end of the day was do we build, which is going to take a lot longer to play out, or do we actually look at buying something? When I think about Boston Private and what they bring to the table, as I've said in my opening comments, they've got deep expertise in private banking and wealth, and they actually have some and I would say I was surprised by some interesting things on the commercial banking side that we're going to take a look at. Some we're going to put into our business and some we want to learn more about. Those fit into areas such as nonprofits, multifamily lending, professional services, and even selectively some CRE lending. Where we've talked about with Anthony and the team, where they're going, the direction, I think you see where they're headed was very much about in private banking and wealth. I actually think there's a lot of overlap. When you take private banking and wealth clients, what are their innovation clients or what are their traditional high-net-worth individuals? There's a lot of overlap. They need a lot of the same services. We believe many of those things are transferable, and we get the benefit of some additional expertise in other areas that we didn't have before. The final piece is in when I think about the geographic footprint. While Boston Private's focus isn't the same as ours in the innovation economy, by virtue of them being in the markets, similar markets to us, Northern California, Southern California, Boston, New York, and now Florida. You look at those places, and that's where innovation's happening. In the case of Florida, that's where wealth- goes in many cases, and increasingly you read about this in the headlines every day, more companies than executives are moving to Florida for a lot of different reasons. We believe when we think about the footprint and the fact they do have overlapping geographies, that they already have some innovation, and now we're going to be able to take that expertise and actually leverage our platform to create something really special. It's not a de-focus, it's not a de-emphasis. It's what's our approach to growth, and we certainly believe this is the best next step forward. Thanks, Greg. There were probably about eight questions in there. Sorry about that. Just as a follow-up to that, the $400 billion that you highlight, does it tactically like do you now go on a hiring spree, or is there this opportunity that you see in front of you that you can bring into the bank at a much faster timeline? Just give a sense of how we should assume some of that revenue accretion tied to this targeted opportunity coming into the bank for the next year, over the next few years. Yep. First and foremost, Ebrahim, we need to make sure the integration goes well. That's number one the most important thing. We do have some time, again, subject to doing it the right way and not overstepping boundaries between now and when the deal closes to talk about what that integration will look like and the go-to-market strategy so that when we do close the deal, that we hit the ground running very quickly. Now, to your question specifically, what about talent attraction? In talking to Yvette and talking to Anthony, that is clearly part of our strategy. We believe what we're going to offer advisors and other players that are on the wealth side is we offer something very few have, which is a massive growth market. We, as I said in my opening comments, our clients in the commercial banking side are the best companies and the fastest-growing companies by a wide margin, and that's where most wealth is created. What we're going to provide is an opportunity for advisors to come in, not just the ones we have on our platform, but new advisors that look at this as an opportunity. First and foremost, get the integration right. Secondly, make sure that we're capitalizing on the talent that we already have on the platform, and then selectively adding talent who want to be part of what we believe is going to be a super compelling private bank and wealth growth story. Got it. Thank you for taking my questions. Yep. Thank you, Ebrahim. Our next question comes from Steve Alexopoulos from JPMorgan. Go ahead, Steve. Hi, everybody. Hey, Steve. I wanted to start. Greg, I know improving wealth management has been a key strategic initiative for a couple of years now, right? That's what led to you guys bringing Yvette into the company. How did this come about? Was this an opportunity presented to you, or did you identify Boston Private as a solution to get you much quicker where you want to be? Steve, it goes back to what you said. I'll just kind of add on to what your comment was. I had said publicly, we have said publicly for the last several years that private banking and wealth is an incredible opportunity given our client base, and we have been expanding in this market. That's higher in 2018 was part of that. What the team has done, we've seen really nice growth. Our product set is being built out. We've added great talent to the platform. That being said, we still look at how fast the market is growing, and we wanted to make a bigger move, a bolder move. We've said, I said on earnings calls that we're looking and we're evaluating inorganic growth opportunities in private banking and wealth, and we were. When you look at it, what Boston Private brings to the table is not just the wealth which they have, but it's the planning and it's everything else, plus the technology, plus a leadership team that you combine with Yvette and what we have. All those things are what makes it compelling. Over the last few months, as we've gotten closer with Anthony and the team, we've gotten more and more excited about it. As I said, we certainly believe this is the right next step for us to build out our private bank and wealth platform. When the deal closes, you'll be able to see a lot more about it. I know I am and our team is excited about it. Okay. Greg, is the plan still to target influencers, right? The private bank has always had a fairly narrow focus. Or do you see this now as a more mass market approach to the business? Yeah. Here's how I would describe it. Steve, you think about a bullseye. We had a very targeted bullseye. If you think about in a bullseye, there's probably seven additional rings, and the final ring, if you had the largest ring, that's where everybody that has any wealth at all would be a target market. That's where most private banks and wealth target. I see this as we are firmly committed to the center of that bullseye, and maybe we'll move one ring outside by expanding it, but we are not going to make this a mass market play. Do I think that there's an incredible opportunity? We believe that when you look at not just what our clients have, but what you actually have in the overall innovation economy, we believe that number is north of $1 trillion of wealth. When you think of that, it's a big opportunity. At the same time, I want to add one more thing because it's important for the Boston Private clients. The amazing clients that are already there, we are client-focused as they are. Our intent is clearly to take care of the clients that already exist on the Boston Private platform and give them access to our broad platform. That's going to be compelling. When you think about just pausing that for a second. We're going to take care of clients on both sides in one unified team. Where's the growth going to come from? The growth is going to come from the innovation economy. That's what we're excited about. And I know Anthony and Yvette and I certainly feel the same way. That's helpful. Greg, maybe for one final one. One of the challenges of the model has always been a relatively low loan-to-deposit ratio because your core customers just haven't historically borrowed. When I look at the new verticals, whether it's C&I, commercial real estate, how are you viewing that? Do you look at that and say we can ramp those and drive the loan-to-deposit ratio higher? Do you say they're outside of our core competency, which has been the view of the company for the last 20 years, or at least by 20 years? Do you exit those? How do you look at all these lending capabilities? Thanks. Yeah. I'm going to focus on growth, Steve, and that's what you kind of centered your question on. Do I think that part of this will be growing nonprofit lending, professional services, multifamily office, those sort of area? Yes. Do I see us growing stock-secured lending, both private and public? Absolutely. That I actually think is you look at the ones I just mentioned are the biggest ones. What we need to work with Anthony and dig into more is the CRE portfolio and the C&I portfolio. You look at those pieces, we're going to be spending time to learn more about that. I believe there probably will be some opportunities there. The growth is going to be in the other areas. One final piece, again, when I think about where our growth has come in our private bank on mortgages, that's been a great business, which we still think has massive opportunity to grow. I know in talking to Boston Private, they certainly feel it's a massive opportunity for growth as well. One of their limitations, which will be solved with this combination, is the fact that liquidity will no longer be an issue. They won't have to worry about deposits to fund mortgage growth. We have that in spades, as you know, and that'll be an exciting part. How will the loan-to-deposit ratios shake out? That I don't know because you know our business overall collectively is one of the most liquid anywhere. You saw those numbers for the third quarter, and so that obviously, we'll see how that changes over time, but we certainly expect it to continue to be a highly liquid market. Great. Thanks for taking all my questions. Yeah. Thanks, Steve. Our next question comes from Ken Zerbe from Morgan Stanley. Go ahead. All right. Great. Thanks. I guess starting off, in terms of the restructuring costs, the $200 million, it looks fairly large relative to the $900 million deal. I know you mentioned that there's growth investments in there as well as the integration costs. Can you just break that out a little bit? I'm just trying to figure out if the growth investments are truly part of the deal or if you're kind of funding those investments with the deal in some way. Thanks. Hey, Ken, it's Dan Beck. Greg might want to add. Again, this is a deal for growth. If you think of the key themes to remember, one, leveraging Boston Private's talent to more quickly expand our private bank wealth management capabilities, and two, accelerating our digital capabilities in the business. Those are really both core to our strategy. As a result, we're expecting a large portion of that restructuring to be, one, technology-focused, and two, retention for Boston Private's exceptional team. There are also components of the tech spend, if you think about where we are from a balance sheet perspective, for us to be a large financial institution, and to be ready for that as we cross over that mark as a combined entity in 2021. Finally, some restructuring of real estate as we face a different corporate and branch landscape as we shift more to digital interactions. Ken, Greg mentioned it before. We're clearly not doing this for the cost synergies. We're in this to grow the business. Got it. Okay. Just to be clear, the $200 million, you still get tangible book value accretion, including that entire $200 million, correct? That's right, Ken. Okay. Are you able to quantify the tangible book value accretion? It's in the low, let's call it single digits from an accretion perspective. Again, like we said, the restructuring charges are sitting in there on a post-tax basis. Got it. Okay, perfect. Just one final question, if I may. Obviously, with $17 billion of Assets Under Management, certainly much bigger than what you were. I obviously heard Greg's answer about sort of targeting the center of that bull's eye. Even at $17 billion, do you feel that you have enough scale to really be successful in the wealth management business in terms of your target market? Is this, A, do you need more deals? Do you need to acquire more wealth management to grow your assets to be really competitive? Is this really just focusing purely on sort of your technology clients, and that's kind of it, so as long as they're happy, this works? Yep. I'll take it. When I think about the opportunity, again, we've got an incredible opportunity in front of us. We first and foremost, the most important thing is to integrate what we have, to make sure that everything's humming along. Do I believe that we're going to be bringing more resources and capability to capitalizing the tremendous opportunity? The answer is yes. Will it be an acquisition, or do we believe we're going to have the leadership team on a combined basis that can both attract and assimilate individuals and teams without having to go out and acquire? The answer is we believe that's the case. That doesn't mean that we wouldn't look at something from an acquisition of an RIA or something like that. We certainly believe, in talking to Anthony, in talking to Yvette, that the growth opportunity we have is going to look very appealing to some very strong wealth advisors on their current platform and being willing to join this combined platform. All right. Thank you. Yeah. Our next question comes from Jennifer Demba from Truist Securities. Go ahead, Jennifer. Good evening. Thank you for taking my question. Can you just talk about your client and employee retention strategy for this transaction? Yeah. Just some color on what strategies you used with Leerink that you're going to use again with Boston Private. Yep. I'll start, and Dan may want to add to it. When I think about people retention, I think about people staying on the platform. It's the same on SVB's platform, a deal or no deal. People stay, my view, is for three reasons. One is the opportunity, the opportunity they have in front of them. Number two is the culture and the values, and I put those two together. The third one is compensation, being fairly compensated. My view is, and I actually believe those are in probably the order is probably culture and values, number one, growth, and then third is compensation. We got to pay fairly, no question. We'll do that. We do have retention built into this to make sure that over the next year to two years that people are focused, and they don't have to worry about that. The most important thing is opportunity and culture. One of the things that, again, as we did our due diligence that was so compelling on the culture side is I believe too many institutions out there have a star model where individuals are recognized and anointed, and that's how they get exposure. We have amazing people. It doesn't mean we don't have stars, but you can still have stars and not have them act like stars. That's a team-based approach. We take that approach. What I have seen when talking to Anthony, what I've seen in talking to the leadership team and talking to other people, that's their approach. It's a team-oriented approach. That culture and values is so strong, and it's so strong at SVB. That, to me, is the most important part of retention. Now, we've talked many times over this call about the opportunity. I am personally not worried about the opportunity and retaining people for what could be ahead. The final piece is compensation. We pay fairly, and again, we have retention built into this. When you look at those three things, I think you always have to be paranoid about it, but I think we've done a good job of both assessing the risk and managing it. Very helpful. Thank you. Yep. Our next question is from Bill Carcache. Go ahead, Bill. Thank you. Good afternoon. In contrast to many other banks where risk-based capital ratios like Common Equity Tier 1 are binding, leverage has historically been binding for you guys. Could this acquisition and the growth opportunity that it represents in any way change which of your capital ratios will be most binding in the future? Yeah, I'll take that. If I think about the impacts of this deal from a capital perspective, it doesn't move that binding capital ratio on Tier 1 leverage materially. Where we continue as we've always focused is on our Tier 1 leverage ratio. We continue to ensure that we've got the right flexibility to support the growth of our organic business as well as these new interesting opportunities. I believe just based on how our balance sheet is structured and the size of the liquidity that Greg mentioned earlier, that Tier 1 leverage is always going to be the constraint. I do believe at the end of the day, we've got the flexibility to be able to manage that and to be able to support the growth of the company on an ongoing basis. Understood. That's very helpful. Thank you. Greg, you clearly have a wide range of options available to you with your currency. Can you give a little bit more color on the selection process and whether it was competitive in any way and just how long it took? Just any overall color from that perspective. Well, I'll start with the part about how long it took. Obviously, it takes a little bit longer in a COVID virtual world. Outside of that, I think the process was pretty straightforward. Again, I'll go back to what I said a few minutes ago. When we think about the opportunities ahead of us, it was let's look at something. If we can find something that has a more broad-based solution set, that's appealing, number one. Number two, having the people and the talent. We also get technology. When you look at all the different things that we get with the acquisition of Boston Private, it checks so many boxes. What's been talked about as well is what about just wealth itself, wealth advisors? That is a piece of the puzzle, but I certainly believe that our private bank combined with Boston Private, those two pieces with the additional capabilities in the areas such as they would call it commercial banking, I call it specialty lending, nonprofit lending, professional services, multifamily, CRE, those sort of things provide a broadened product set. Once you have that foundation done, then I believe we can go out and approach the wealth management opportunity in a more aggressive way. I'll repeat what I've said several times. It may be an acquisition, but it's unlikely. It'll more likely be bringing people and teams of people on board because of the three things I talked about: culture, opportunity, and compensation, in those orders. It's very helpful. Thank you for taking my questions. Yep, absolutely. Our next question comes from John Pancari. Go ahead, John Pancari. Good afternoon. Hi, John. Just a question on the EPS accretion. I know you indicated low single digits. Just want to see if you can perhaps help us with the timing of what's the timeframe that you see that accretion and if possibly you can give us a little bit more clarity around how you're defining low single digit, just how we should think about it. Thanks. I'll start, and Greg might want to add. If we look at the EPS accretion, again, low single digits, and as Greg mentioned earlier, within the bounds of what we can do between now and the close of the deal. We're going to make sure that we're ready. We're going to focus on the integration. We're going to try and get things moving as quickly as possible. Really from the start, we believe that it'll be accretive, and that'll be in the first full year of our combination together. Whenever the close date within that first full year, it'll be in that low single digit accretion again, and this is without the benefit of those revenue synergies. That's what our expectation is. That's the timing. Again, the focus is on integration and getting what we can do within the boundaries that are set for us to be able to make sure that we're getting this done. Got it. All right. Thanks. On the cost save front related to the accretion, can you just give us a little bit more detail on the drivers of the cost saves? I know there's not necessarily a lot of branches that we're talking about here. Where is the 20% primarily coming from? Yeah, I'll start, and Greg might want to mention it as well. I think if we take a step back and we look at where the savings are, there's clearly some opportunities as we look at real estate. COVID's given us the opportunity to work more in a digital environment as we look across corporate real estate. If we look at some of the potential for some branch consolidations, those are clearly out there in the opportunity for some savings. I think if we also look across our organizations, obviously this deal is not being done from a cost savings perspective, but there are some overlaps in some small areas where we do see some consolidation included within the cost synergies. Really, again, when we look at this from a deal perspective, roughly 20% cost synergies is pretty small compared to other deals. Again this isn't done for the cost synergies. It's done from a growth perspective. Got it. Okay. The only thing I would add to what Dan said is just on the technology side. Obviously we had plans to spend a certain amount of money on technology, and obviously so did Boston Private. When you merge those together, there are savings there as well. When you add up all that, it's not a huge number. This is not about, again, headcount reduction. It's just when you add up all the pieces that Dan and I both talked about, you end up with that number. Got it. All right. That's helpful. I'm sorry. If I could just ask one more on a kind of a two-parter on the credit side. C&I looks like your deferral rate there, I know you acknowledged it was elevated, is the deferral rate on the Boston Private book is around 9%-10%. Why so high? I know peers are in the low single-digit range. Separately, this sounds like you're committed initially here to the Commercial Real Estate portfolio. What's your longer-term plan there? If you could just give us some thought. I know 30% of it is in retail and hospitality, clearly it's going to be an area of a bit of a challenge here in the near term. Thanks. I'll start on the second question, and then I'm going to have Marc answer the question on deferrals and anything else related to credit quality, specifically around CRE. We know enough, I would say, to be dangerous about the portfolio and how it operates. You commented specifically around, we'll call COVID-related industries, so hospitality and industries that have been more dramatically impacted. Obviously, if you talk to Anthony, you talk to his team, and I believe they've said this on their earnings calls, that is not an area of growth for them. They're not planning to expand that, and we certainly wouldn't expect them to expand it, nor would we expect to expand that. That will be evaluated. If you take that to the side and then just look at CRE in general, CRE has not been a primary focus of ours, but we do have more requests coming from our private bank clients and some from our commercial clients that are looking for owning their own facility. There are some private equity businesses that we want to evaluate to see if that is a good business to go into or continue to expand into where private equity is doing real estate deals. Our intention is to work together to look at that and consider where there are growth opportunities. I feel really good about the path forward. I would say stay tuned. As we get closer and we can share more information, we'll have a clearer path ahead about what things will look like. With that, let me turn it over to Marc to get more specific into the credit question you asked. Yes. To just revisit that question, you'd asked about payment deferrals, and here, Boston Private's remaining loans on payment deferral is actually pretty modest. It came down in the third quarter to roughly $150 million combined between C&I and residential mortgage. There is another program, the Commercial Real Estate Second Lien Loan program, not actually a deferral program per se, but rather what Boston Private did was make loans secured by second lien on the subject property equivalent to principal and interest payments for 12 months on the first loan. In effect, it provides 12 months of relief to the roughly half of their CRE portfolio that participated in that program and continues out into the middle of 2021. When you think about the nature of COVID, and in particular its impact on hospitality and retail, which are called out specifically here, that 12 months, really when you look at how things have unfolded, was probably a pretty prudent move on Boston Private's management to give the extra time that these types of properties were going to need to recover. Obviously, the 2021, we come into it with a fair bit of uncertainty. Again, with the program expiring in the middle of 2021, lots could happen, both good and bad between here and there. Again, I think we took all of that into consideration as we zeroed in on our credit mark. Got it. Thanks for taking my questions. We have no more questions at this time, and I'd like to turn it back to Greg Becker for closing comments. Great. Thanks, Daryl. Just a few comments. Again, I appreciate everyone joining our call. We look at this as an immediate add to the scale of our private banking and wealth business. It's a massive market. Our clients, again, $400 billion of wealth. If you look at the overall innovation economy, we look at as being north of $1 trillion dollars. When you think about all the complementary capabilities that our private bank brings to the table and Boston Private in its totality brings, right? That's private banking and wealth to include the commercial banking that I described earlier. That is a really compelling opportunity. It accelerates our digital client experience. It's accretive to tangible book value and earnings and diversifies our revenue and enhances profitability. When I think about all those things, we feel really, really good about it. Maybe one last thing before I close, because I know there's questions about this. We have, as does Boston Private, an extreme focus on clients, their success, supporting them through the good times and the bad times. I know there's questions about how we're going to look at commercial banking and CRE and those sort of things. I can tell you our commitment is to take care of those clients and to work with them and to be a partner with them, as we are with all our partners and all our clients over many, many years. I'm looking forward to getting to know the clients more, to know the team more, and to work with them to build something incredibly special and incredibly unique. With that, I just want to thank everyone for joining us and also finally welcome the entire Boston Private team to SVB. Thank you. Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.