Good morning. I'm Jase for Barclays. Welcome to our 20th annual Global Financial Services Conference. Last time we were in this room was 2019, and it's so great to be back, in person. First up, very pleased to have SVB Financial kicking things off this morning, and we have a whole slew of banks, throughout the day, the majority in this room, so please kind of find your seats, and we'll get, we'll begin on time. Thanks again. From SVB Financial, we're very pleased to have Dan Beck. Dan, maybe the best place to start is, you know, this morning we're gonna hear from, or throughout the day actually, from money center banks, from trust banks, from kind of all these kind of regional banks, and SVB Financial is, you know, a bit more new and unique. So maybe to start it off, you can maybe talk about, you know, kind of your strategy, business model, and kind of what differentiates you. Yeah. I think at the same time I can wrap in a little bit about the current macro environment, and we can take it from there. Great to see everybody. Sorry to get everyone up so early. We just flew in last night, so I'm a little bit slower. That might be the reason for it. From a company perspective, you take a step back. For the last 40 years, we've been deeply involved in the innovation economy, not just here in the U.S., but on a global basis, and we've continued to see this amazing acceleration of the pace of change in innovation, and with our relationships with founders, our relationships with venture capital, as well as what we do in private equity globally, we've played a nice role in the middle of it. If we take a step back now and look at where we think things are headed over the next three, 5, 10 years, we're just as excited today about the opportunity and the dollars that we expect to continue to be invested in the sector. As we look at things now, for sure, the public markets are quite slow. We look at deployment from venture into the U.S. innovation ecosystem. Now, July and August are not great periods to gauge how the rest of the year is going to go, but at the end of the day, things are clearly slower from a deployment perspective. So we remain really excited about things here over the medium and the long term. And one thing for everybody to really take away is that recalibrations in our markets are actually a good thing. Recalibrations represent differences in valuation assumptions from founders and their management teams and the buyers of equity, those venture capitalists, and the rest of those firms. We're seeing a stockpiling of capital for the venture capital firms, and right now we see the second highest year from a fundraising perspective. Folks are ready. They wanna put that money to work. The question is, when that money goes to work, and when will we reconcile valuation from founders with what venture's willing to put money to work with? That's what we need to see for a healthy ecosystem. It will, at least in our view, happen again. Some wood to chop through from a valuation perspective, but all that money sitting on the sidelines we think is really helpful. Thanks for having me today. Long opening, but wanted to at least get that started. I guess, maybe from the macro standpoint, you know, you talked about tons of dry powder, but slower on the deployment. You know, given that valuations have come in, how does that impact, you know, how when this dry powder gets deployed? And then, what are you looking at, or what should we be looking at, in terms of maybe leading indicators, maybe other than the IPO market reopening, to kinda gauge when this is going to occur? Yep. I think you hit on all the elements of what makes a healthy ecosystem for the company. So one, public markets. What drives the public markets opening, and why is that important? What's gonna drive the public markets opening from here is more stability in technology, healthcare, life science valuations. So think of the VIX, think of the impact on those valuations, and if we see some steady valuations in those technology, healthcare, life science names, not the big cap tech, but those smaller technology, healthcare, life science names, that's gonna be really helpful for the market. We at this point still expect a very slow public market between here and the end of the year. So that's one element. Why is the public market so important? It's so important because that's where, if you're in the private markets, you're looking for signs from a valuation perspective. If you can't see where the public market valuations are, it's hard to figure out where the private market valuations are. There's been a disconnect between the two here for the last, last couple of quarters. So dry powder will start to come off the sidelines at the point where you see that market stability, and at the same time when founders are ready to take a down round. And founders, unless it's not obvious, they don't wanna take a down round unless they have to. So you have more liquidity on the sidelines for those companies than you've had in previous recalibration moments, and at the same time, more dry powder than what we've seen on the sidelines. So at some point, the two are going to reconcile. Founders will be in a spot where they decide it makes sense to take a down round and to effectively take a valuation, a capital infusion. And with all that money on the sidelines, they'll want to, and there'll be almost a fear of missing out, to put that money to work. So those are the things that we're watching for, and at some point that cycle, when it does snap back, generally snaps back pretty quickly, and that's what we've seen in previous recalibrations once that equilibrium or that bid-ask spread is met. That's helpful. Before we dive into more SVB-specific, you guys all have kinda clickers in front of you. We're gonna go to our first ARS question. We started this in 2012, done it every year since. So please indulge us. But if you could put up the first question, please. You know, just what's your current position, the shares of SIVB, and click 1, 2, 3, 4. We're gonna ask these for every company, at the start. Like getting a live report card. Exactly. We'll wait for the next question. All right. So, not involved. So this could play for people. And maybe go to the next question. What is your biggest concern on SIVB's outlook? So almost 50% client on outflows, followed by investment markdowns and then interest rate sensitivity. So we're gonna make sure we focus on those three. Maybe the best place to start, 'cause I think it ties in both interest rate sensitivity and client fund flows is the one slide you guys put out this morning, you know, pointing to a net interest margin and net interest income for 3Q that is kind of in line to below what we saw in the second quarter, and it looks to be a bit below consensus. So maybe talk to what are the drivers of that. Yeah. So if we think about our net interest income and net interest margin, we are certainly still seeing the benefits of asset sensitivity, but we have to think of the different elements of where asset sensitivity's coming from. So first and foremost, on the lending side, 90% of the lending part of the loan side is variable rate. So we're seeing that certainly come through. What we are seeing is a continuation, though, with remember we just mentioned slower deployment into the venture, you know, from venture capitalists into companies. That slower deployment is effectively driving more of a mix shift between non-interest bearing and interest bearing accounts. So that change in mix shift is slowing the impact of the interest rate sensitivity. So as we think about things on a go-forward basis, we put out net interest income expectations for the quarter, which were $1,140-$1,170 in Q3. Looks pretty close to where we were in Q2. When we back that out, we had close to $30-$40 million dollar benefit to slower premium amortization in the second quarter. So from there, we're seeing effectively a pickup in asset sensitivity being offset by some higher cost of deposits with that mix shift in deposits from non-interest bearing to interest bearing. Net-net, on a go-forward basis, we would expect with the way the balance sheet is moving and while deployment is slower into the innovation economy, that for every 25 basis points, our static sensitivity would be about 50% of what we had disclosed, which was around $75-$90 million dollars for every 25 basis points. So think of that as $35-$45 million for every 25 basis points here on a go-forward basis because of this mix shift that we're seeing, while fund flows are slower into the innovation economy. Now, it's certainly not a one-way door. One of the things that we've been doing is bringing deposits from off the balance sheet to on the balance sheet to supplement the deposits that we're seeing. With that, we have the ability when fund flows return to effectively retarget some of those balances off the balance sheet. And we control that with some of the products that we've put in place. So once we see the engine restart, and we expect that it will, we'll have the ability to take some of that funds, those more expensive funds, and push them off the balance sheet to recognize an improvement in the overall profitability on a go-forward basis. So we're waiting for the dry powder to get off the sidelines as we were talking about here before. So I guess when you think about, I guess there's two things. There's both the mix and then, I guess, the beta. On the mix, I think historically you've talked to, I think it's a 55%-60%, you know, non-interest bearing versus interest bearing. I guess where would you expect to be, and then I guess what do you think maybe stems this shift? Yep. So, we've talked about that 55 to 60. I think for this year we'll probably end towards the lower end of that range. And again, I think what stems that shift is exactly what I was just referring to. You know, normally with the public markets being open, which provided just massive amounts of liquidity, you know, in previous periods, and all that dry powder sitting on the sidelines, when that shows up, you know, to our clients, that in many cases shows up with a higher percentage of non-interest bearing mix. So once we see that return, and we can effectively stop pushing funds off the balance sheet to on the balance sheet, you'll see this trend reverse. At least that's what we expect based on our forecast. And then on beta, I know you historically or not historically, you've previously talked about a 60% beta on the interest bearing component. I guess how is that tracking versus your expectations? Yeah. We'll still, you know, not every quarter is going to play out exactly, you know, towards that, but through the cycle we're still expecting that close to 60-60% deposit beta. Some quarters you might see more beta, just because of more seasonal trends. And I think everybody out there is seeing what's happening for deployment in the venture capital space in the most recent periods. July and August aren't the best periods of time, especially after two years of COVID, I think, to see substantial amounts of deployment. So let's see how the rest of this year at least pans out. You know, we know there's a lot of dry powder on the sidelines, and people certainly wanna put that to work. Got it. Maybe let's go to the next ARS question before we go more into deposits. Where do you see SVB's 2022 average deposit growth? Oh, here, here's interesting. Only 16% of the people set up 20 to 30%, and a third set up 10%-20%. I guess, let's say it this way. More than half the people have you coming in below your guidance. I guess, your guidance on the second quarter earnings call was deposits up in the high 20s% area. Is that still what you would expect for the full year 2022? Yeah. Based on trends that we're seeing today, I think we can still say we're within that range. Obviously, we have more time to play, as we go through the rest of the quarter. And as we talked about, we're seeing more of a mix shift with money coming from off the balance sheet, on the balance sheet, in terms of interest bearing deposits. But you know, as things stand now, that is within that range. If you look back historically, I think it's only twice we've seen client funds decline on an annual basis since 2000. Typically you see a pretty sharp snapback. I guess as you sit here today, you know, do you think, you know, would you think it would play out similarly this cycle and maybe just compare kinda this cycle to what we've seen to previous kinda slowdown cycles? Yeah. So first on the snapback, you know, I mentioned it earlier. What's a little bit different than previous cycles is normally as we went back, let's say 2015, 2016, or 2008, the level of fundraising activity for venture, you know, really stopped. It was almost a pencil down type of moment. Whereas, you know, just the last week you saw Bessemer raise a $4.5 billion fund, and as I mentioned earlier, by the end of this year we'll probably see the second highest fundraising in the venture capital space. So, you know, these are generally speaking 10-year funds. And if these 10-year funds have made investments at higher valuations in previous periods, they're gonna need to make investments at lower valuations in order to continue to see the strong returns that they've seen over time. All of our channel checks with venture capital firms, you know, really help us understand what's happening out there. What we see happening is that they're preparing to deploy at larger size and scale. Maybe not towards the later stage seed, rev stage companies. I think that's where you're going to see money go to work first. I think the snapback, once people start to invest, once valuations, as I mentioned earlier, start to stabilize, human nature, fear of missing out starts to kick in, and dollars really start to go to work. That's what we've seen previously with the additional fundraising that I think makes us feel that there's a lot more to come. You know, on a day-to-day basis, we see innovation companies doing a lot of exciting things. We're not in the camp of thinking that the innovation economy's slowing down. The pace of change is actually accelerating, and we think there's going to be more money out there. The last thing I'd say is in terms of snapback. We talked about this on the second quarter earnings call. The amount of term sheets that we're seeing in our global funds banking private equity business are at record levels. So what does that really mean? Again, 10-year funds, there's more money that continues to be fundraised, and private equity firms are adding capital call exposures. Why? Because when they're ready, they're gonna take that money, and they're gonna put that money here to work. So that really gives us a lot more confidence. You know, we can never never say with perfect clarity what it's gonna look like relative to other cycles. But there's more money on the sidelines. The pace of change and innovation continues to accelerate. And, you know, frankly, we're right in the middle of a lot of what's happening in this ecosystem. So I think when I add all those three things together with the four different businesses we have: investment banking, private banking, wealth management, and the commercial bank, I feel like we're well positioned to take advantage of it. 'Cause you, I guess, kinda reiterated your kinda deposit growth guidance. You talked about record term sheets. It feels like even the environment's probably maybe a little bit worse than we anticipated. So I guess where is this, you know, business coming from? Any changes in the competitive landscape? Now it's really, if you look at what we saw in terms of new client additions just in the last quarter, we were close to 1,600-1,700 new clients. You're still seeing new companies being formed. You've got companies that have more cash sitting here on the sidelines. And in terms of the venture capital firms and in terms of private equity, it's really, really the same players. These are moments actually where we deepen with clients. Imagine a client that's burning through more cash that it wants to extend runway. That's an opportunity for us to really get in there to help, to take warrants that in a couple years we'll be talking about, that provide a lot of value from an earnings perspective. And more importantly, it's a help to the client to extend their runway. So it might not show up in the loan guidance because capital call's such a big part of what we do. And in these environments, you're not really seeing as much draws on capital call lines. But the quality and the profitability of the lending that we do in this period of time, one, it's super important to clients. Two, it's not bad for net interest income either. I guess on the topic of loan growth, you also talked about high 20s% loan growth guidance, still full year, which implies continued growth in the back half. Can we talk to, you know, maybe some of your assumptions around that and, you know, lending into the tech, healthcare, life sciences sector, you know, at the same time where all these kinda recession signals perhaps maybe just kinda delve into there and then maybe what you're seeing on the capital call side just given, you know, reduced investment activity? Yeah. Lending is really interesting. You go back, you know, three months, six months. You wanna have a conversation with a company that just got a capital fundraising round, where valuations were at record levels. You didn't have a conversation and say, "Well, maybe now's the time to also, you know, have a commitment, have a revolver there, and effectively use it as a way to extend runway." Not a lot of CEOs, not a lot of CFOs had time for that conversation six months ago. Well, now the phone is, or whatever, the Zoom or whatever we call it these days, is ringing a lot more, and in that conversation they say, "Well, remember that revolver? Remember that lending? Maybe we could do that and extend it," so that's certainly happening more. Again, as I mentioned, that's not gonna show up as incremental lending volume. It's just gonna show up as higher spread, higher yield lending throughout the rest of the year. That's one trend that we're certainly seeing. The second piece on capital call, I just mentioned it. Number of term sheets. We talked about this in the second quarter call at a record level. What that means is that folks are sharpening their pencils. They're taking a look at opportunities that are out there. In these 10-year funds, they're gonna find the time to put that money to work. This is what we saw back in 2015, 2016. This is what we saw back in 2008: once that momentum starts, people put that money back to work, and effectively the lending and those outstandings increase, you know, pretty rapidly. So can't always count on a pattern, but that's at least what we're seeing in conversations with those firms. Got it. So I have to try with the next question. You gave us three Q NII. You gave us three Q NIM. We have full year deposits. We have full year loans. We're not gonna give you EPS. I don't want EPS. There. That would be asking too much, particularly with the warrants, which we'll get to in a second. But we don't have, I guess, full year NII. I know you previously talked to kinda mid-40s% growth. That's probably, I guess, challenging based on what you said today. But just maybe, you know, how should we think about NII and NIM for the full year, particularly as we start thinking about 2023? And, you know, on top of that, you've taken some actions last quarter to kinda taper down the asset sensitivity. Yeah. I think it goes back to what we were talking about earlier. I think the best way to look at it is, we've given you the third quarter. And from here, as you look at each rate increase with that mix shift that we're seeing, on interest bearing versus non-interest bearing deposits, that sensitivity's probably gonna be about, you know, 50% of what we previously talked about, which is that $75-$90 million, annualized pre-tax net interest income. So think, you know, in that $35-$45 million range for every 25 basis points on an annualized basis while we're in a spot where we see deployment in the innovation economy slowing down. Again, that's where once you see the pickup and see dollars start to be deployed at faster pace, faster speed, that, that's where we'll be able to take more of those expensive deposits, push them off the balance sheet, and expand the NIM further, at that point in time. But assuming that we're in a slower deployment environment, you're looking at that 35-45 for every 25 basis points. I guess just to be clear, 'cause like the Fed's gonna hike call it 150 basis points this quarter, and NII is flat. But from here, as the Fed hikes, it should be additive? It should be additive. Got it. Helpful. 'Cause you have to remember NII is flat. Part of it, again, not to be too terribly technical, is that there was a higher, or a lower level of premium amortization, in the second quarter, which created a benefit into the second quarter that's not going to repeat. Once that that's effectively worth between $30-$40 million. So if you're flat from an NII perspective, you're already starting with, you know, close to a $40 million benefit in the quarter. Fair point. Maybe kinda just moving down the income statement, 'cause I don't wanna spend the whole time on NII. You know, I guess client investment fees jumped in the second quarter, as the fee margin increased with the rate hikes. You know, we have more rate hikes coming. Just maybe talk about, you know, how we should be thinking about that. Yeah. I mean, two pieces there. One from an overall dollar perspective. Obviously, with slower deployment, you're going to see some continued runoff in the off-balance sheet funds. And we mentioned at the same time that some of those funds are being used for on the balance sheet. So you're gonna see certainly some declines in those off-balance sheet funds as well. A positive is the expectation is for every 25 basis points, we'll see something close to, you know, one to two basis points of increased fee revenue on the client fund fee income. And we've done a good job here, and hats off to the liquidity team is in negotiating with our money fund providers. And that negotiation is allowing for us to effectively continue to translate that one to two basis points here all the way through continued increases. Imagine the forward curve Fed funds, you know, 4%. We're gonna continue to see one-two basis points worth of improvement in that core fee income. So that's certainly continued lift on the fee income side. Helpful. And I guess when we earlier put up the ARS question about, you know, concerns on SIVB, you know, investment markdowns was up there. You know, obviously in Q2 we saw, you know, a reduction in warrant gains. We saw investment losses, you know, volatility. Obviously, pressure on fundraising, exit activity, like valuations. You know, further exits reduce opportunities to realize gains, and increase the potential for down rounds, which you mentioned earlier. Just how should we think about those lines in the back half of the year? Yeah. So, you know, obviously when the public markets are open, valuations are strong. You know, think back to last year. You see, you know, quite strong results. You know, we've seen a bit of the opposite here, you know, through the first half. In the second quarter though, on our illiquid securities, so what those really are, if you think about fund-to-fund positions. And our fund-to-fund positions are made up of thousands of granular funds owned by some of the best venture capital firms really in the world. What we did in the last quarter is effectively mark them to market. So we had an assumption that with what we're seeing in the public markets, that private valuations will adjust. We don't know exactly when those are going to adjust. If you think of the thousands of individual positions taken over time, we didn't wanna wait for that. So, our accounting guidance allowed us to effectively mark those to market here within the second quarter. So if public equity markets, especially in technology, healthcare, life sciences, remain pretty steady to where they were in the second quarter, we shouldn't see as much of a large valuation adjustment on those illiquid securities. Warrants, much more specific individual companies, small exposures. You'll certainly see, you know, further, you know, small amounts of, you know, gains and losses associated with them. I certainly wouldn't expect what you saw back in 2021. But, you know, those are really smaller exposures, that'll effectively, you know, have some small losses associated with them. Helpful. And I guess maybe shifting gears to expenses, you know, in July, you know, results were a bit softer than expected on the revenue side. You kinda improved your expense guidance for the year, you know, for 3Q and 4Q kind of, you know, at the lower end of expectations. Maybe just talk to kinda what you did in expense on the first half of the year. You know, additional actions you take in the second half of the year, just how you balance kind of, you know, investing in strategic priorities versus, you know, kinda bolstering the bottom line. Yep. First and foremost, investing is really the name of the game for us. We continue to see, if it's not just here in the U.S., but it's globally, continued expansion of the innovation economy. This market is getting bigger on a regular basis. And I think the dollars that continue to be showing up on the fundraising side globally really point to that. So investing is certainly something that we're going to continue to do in our strategic priorities. So think, you know, what we're doing around private banking, wealth management. That, you know, has been, you know, a growth engine for us on the mortgage side. We can do so much more there, helping investors and innovators from the earliest stages, all the way through the events and moments that matter for them. Investment banking, we've been able to really shift and switch that business from just an equity, not just. It's an incredible equity capital market shop in biopharma to a full-service technology, healthcare, life science investment bank, and M&A has become a much bigger part of our revenue stream, then from there, investing in the commercial bank, both continuing to grow our people, continuing to grow in digital technology, something similar that you'll hear from other institutions. We have to do those things. At the same time, we have to be mindful, of course, of what's happening on the revenue line, so you'll see us, you know, pay attention to that, but at the same time, investing for sure is something that we need to continue to do 'cause this franchise has a lot of opportunity here ahead of it. Okay. And then I guess on the credit quality front, you know, charge-offs are certainly low in an absolute sense. You did talk about, you know, potential increases in the back half of the year. So kind of, you know, maybe some emerging pressures, given the increased market volatility. Maybe talk to, I know you kinda greatly reduced your exposure to early-stage loans relative to prior cycles. But just maybe where you see risks inherent in the loan portfolio and then kinda any changes you're gonna look for credit quality given kinda this slowdown. Yeah. I mean, I think you named it. Over the last, you know, five to 10 years, you've seen the most risky part of our portfolio, which is that investment, investor-dependent early-stage part of the portfolio go from. You go back to the 2000s, that was 30% of our loan book to now down to 2%. In the last quarter, we put up close to 5.5% reserve on that book. Through the cycle losses there, back in 2008, we're in the 6% to 8% range. So we're pretty well-reserved, relative to that. Now, coming out of the second quarter, you know, the overall credit metrics were stable, and at the same time, we were paying attention just because of what we were seeing out in the market, slower deployment. Companies, while they still have a lot of cash sitting on their balance sheets, definitely trying to slow that, but at the same time, burning through some of that cash. We put up the reserve appropriate. If we do have or did see risk in the second quarter, it's in that early-stage investor-dependent segment. We feel really well reserved against that. Cause on the reserve, last quarter, you had one of the larger reserve builds. You took your downside scenario percentage up to 65%. A lot of banks don't disclose it, but those that do are closer to like 20%. Well, we all live in the same world. Maybe talk about kinda what drove that increase in the downside scenario and the reserve build overall. And then just given the step-up in the second quarter, you know, how should we think about the reserve go forward? Yeah. I think we take a look at the world ahead of us, and on a day-to-day basis, you hear we're either going to be in a more recessionary timeframe or, you know, this is gonna get past us here in a couple moments. I think when we look at the end of the second quarter, it looked more appropriate, especially with what we were seeing in the innovation ecosystem, lower levels of deployment, still really healthy dry powder sitting on the sidelines, and companies trying to conserve cash but still burning cash at a pretty good pace. We thought it was prudent to go to that more recessionary scenario. We'll see where things go from here, assuming that the economy remains fairly steady. You know, that should be a place where we end up. But again, a lot of it changes on a day-to-day basis, and we'll have to see how the economy plays out. Helpful. Maybe let's go to the last ARS question. If we can get the last ARS question, there we go. Which one of SIVB's four core businesses do you expect to be the greatest source of growth in the intermediate term? I wish I could answer these. You can. After dinner, we're gonna. So it's a decent distribution. That's very similar to, like, all the above is where I was gonna go, obviously. There it is. You, you love all your children the same. And maybe that's a good place to kind of bring things together, right? So obviously, some near-term challenges we talked about. I guess in your view, has anything changed with respect to maybe the longer-term opportunities? You know, how do you feel about the strategic positioning? You know, how do these four businesses kinda, you know, balance the franchise and work together? Yeah. And I'm probably, and I think our management team shares this, more excited today about the opportunities of bringing all these four pieces together than, you know, we've been, you know, over the last, you know, 12, 24, 36 months. You know, couple really interesting stories. I ended up at a dinner with a bunch of pre-public, IPO, technology companies with the CFOs and our investment bank. So in times of stress, what becomes really interesting is that our bankers, you know, talking about extending leverage become really important to those companies. What's even more interesting is those deep conversations with investment bankers that give experience and perspective on how to help manage through when we're going to see a change in the environment and kinda what to stay away from, what to avoid that they might be hearing from on a more regular basis about structures in order to raise equity. And what's really interesting is to watch the depth of that relationship get built and even further expanded by that additional capability. So it might not be generating a lot of revenue right now, but what it's generating is a lot of deeper connections, even deeper than we've had before, you know, with just the commercial bank. You go further than that. You think about private banking, wealth management, the opportunity to start to have private banking conversations with entrepreneurs in the earlier stages of their endeavor, to be able to provide a mortgage, to be able to provide private stock lending, and to know that that entrepreneur may be backed by Andreessen, Lightspeed, or one of the best venture capital firms, and to be there with them, with a great product set, and great folks that we brought over with Boston Private. So you kinda add all of that together with the continued growth in dry powder, with what we're seeing on an international basis. We're really excited on how these businesses are all coming together. And our SVB Capital business for sure, another big aspect of working directly with the venture capital firms, allocating some of the best fund of funds from some of those managers, working with a whole nother set of capital bases globally. So, we feel really connected into this ecosystem, and we absolutely see all of this coming together. And that's, you know, gets back to the investment that we were talking about before. Perfect. Why don't I pull up here? And we can certainly see if there's any questions from the audience. I guess, you know, Dan, we've seen, you know, the stock price come in. You're now back in the middle of your kinda 7-8 percentage point leverage target at the bank. Your deposit guidance decline implies a decline in balances in the back half of the year. I guess, you know, I know you raised capital last year, but how are you kinda thinking about capital, you know, this year? Do you know, share repurchase maybe come back into play? Just maybe how are you thinking about capital? Yeah. I think as we look at capital being back in that 7%-8% tier one leverage, it's a positive. You know, we just talked a few minutes ago about the amount of dry powder, the fact that we're going to continue to see, at least we believe we're going to continue to see a fast snapback in deployment, which leads to liquidity, which leads to the need for supporting the business from a capital perspective. So we feel great about the return that's being generated. We feel good about being able to put away some capital here to be able to support the growth of the franchise here on a go-forward basis. So, I don't think in the short to medium term that we'd be looking at that. Time for one question from the audience if there is one. I guess I'll wrap up. You know, SVB Securities is something you've been building out pretty aggressively over the last couple of years. You know, kinda adding, you know, more tech to kinda what was more typically healthcare. Can you maybe talk to kinda where you are in that journey? Pipelines have obviously been under pressure, and just, you know, how do you manage that business expenses in that business given you kind of have all these recent hires that probably have guarantees? Yeah. So, you know, going back to my story before, having these capabilities, if you think about it from a client's lens, is really important for the future growth of the franchise. That one place where you can put together the advice, and the expertise to be able to help a whole wide range of companies as our balance sheet grows, and our capabilities grows, that this is just absolutely important for us. So, yeah, certainly look at guarantees of expenses. That's something that, you know, will weigh on the expense line. But we're really excited about the opportunity there. You saw last year we added research capability on the technology side with the great firm MoffettNathanson. We're gonna continue to hire analyst capability there to be able to help cover technology companies. We've got great coverage on the life science side. You know, this is really something that's just a required capability for us, with the types of companies that we're working with. Just think about the fact that as those companies grow, we'll be able to stay with them longer, both on the banking side and on the investment banking side. Yes, it's certainly not great for the expense line, at least in the short term, but those folks are also producing. Think about the shift in revenue from equity capital markets from M&A, and the fact that guidance hasn't come in that much in a you know, really tough year from a capital markets perspective. Overall, really excited about that business that Jeff Leerink and his team built, and continue to build today. Great. On that note, Dan, thank you so much for spending time with us this morning. Thanks. Thanks for doing this.