Next up, for first bank presentation or fireside for the day, we have Silicon Valley Bank, SVB Financial. From SVB we have the one and only Dan Beck, CFO. Dan, thank you so much for taking Valentine's Day and joining us today. That's how I was gonna start up. I can't imagine who I'd rather spend Valentine's Day with than you. All right, before we get any ideas. There we go. I hope your wife's not listening to the webcast. Mm. All right, on that note. I don't know how to segue from here. Like, at this point you have me blushing. Maybe just, I think interesting place to start, I think, for bank investors is around health of the VCs market, right? It's not something that's easily hard to handicap. Give us, like, you obviously gave a lot of clarity during the call a month ago, but how are things shaping up relative to the guidance where you talked about some slowdown in the first half? Just what's the give us a state of the union for the VC investment backdrop startup? Yeah. Ebrahim, I think, you know, what we expected was a fairly tough first half. What I mean by that is you take a look at venture deployment levels in the fourth quarter, we saw about $35 billion deployed in the quarter. On an annualized basis, we were thinking venture deployment was gonna be anywhere between $120 billion-$140 billion, with venture deployment down likely in the first couple of quarters. Sure. By 20%-30%. that's largely shaking out. Mm. From a deployment perspective. You know, if you look at just that aspect, I think, that's pretty consistent with what we expected. I think what we continue to see, for sure, are companies, and clients that are trying to extend runway. Mm. They are trying to slow cash burn. I think you almost see it on a daily basis of additional, you know, unfortunately it's people, but layoff announcements and things along those lines. That's a tough backdrop, as we anticipated. But I think in terms of deployment, that's playing out. In terms of the amount of just, you know, reductions and things along those lines to extend cash burn, that's certainly happening. Understood. I guess obviously you don't always provide inter-quarter update, as you think about how it's shaking out, fair to assume that it's kind of translating into a similar way in terms of when you think about the funding both on and off balance sheet and how those dynamics are shaking out? Yeah. I mean, it's still obviously early in the quarter. Again, the things to pay attention to are the expectations around venture deployment. As we anticipated, we anticipated that would be a bit slower here in the first couple of quarters. That I think is playing out. Got it. I'm gonna digress from the question. Okay. In terms of venture deployment, I know in the past you've talked about that, you know what? Not a lot of our clients are crypto clients, for example. Just the makeup of that venture deployment, like would love to get some perspective around how that is relative to your client base? Yeah. I mean, I think if you look at where we're focused, vast majority of what we do is in the technology, healthcare and life science space. Technology, SaaS-based companies in particular. There's a heavy concentration. you know, across the rest of artificial intelligence, you know, do you know, a lot of companies at least in that space, with some fintech. Fintech's more, I would say, on the Web 3.0 side. Sure. Versus, what you're seeing from a crypto perspective. We've said it before and we'll say it again, immaterial exposure at least on the crypto side. You when you disclose your exposure to ChatGPT, you're speaking ChatGPT. That was a joke. Thank you. Just for the transcript. understood. I think, you mentioned like customers extending sort of their runway. At the same time, I recall you talking about a lot of the funding happened in 2018, 2019. We're getting to a point where there will be the need of funding at some point this year. I think, is that statement still true? Is the reality around what the new world looks like valuation-wise set in at when you talk to founders in your? I think that gets into the venture, excuse me, the venture backdrop, and that bid-ask spread is still there, for sure. You still have founders, you still have management teams that are waiting and to some degree hoping that we see a pickup in overall equity valuations. As we've mentioned, with every passing quarter, you see companies getting a bit closer to a point in which they're going to need to do something from a funding perspective. These are for your cash burning companies. Right. There are also a host of companies that are doing quite well, not cash burning, that are continuing to scale with a lot of dollars from a runway perspective. You do continue to see quarter to quarter to quarter, clients burning down that level of cash. At some point, they're going to have to take some action, be it an inside round or potentially that down round. Got it. I guess within that, a few things, right? One, it's opened up lending opportunity for SVB. Just talk to us there in terms of is that growth pipeline look as strong as it did in sort of latter half of 2022? Yeah. We continue to step in for sure, on the venture debt side. You know, we've been talking about this over the last six to nine months. Clients, when you had equity that was at such a really cheap rate, for these founders, for these management teams, it didn't make sense for them to take down debt. For sure now, as an ability to be able to extend runway, we're getting a host of calls, effectively saying, "Hey, remember when we talked about. Sure. You know, the potential of having a debt solution on top of an equity round? They might not have been as interested at the time, but they're certainly coming back. That is where we actually build this depth of relationships with our clients. If you think of the warrants, you think of being able to lend and lean in in those moments with the knowledge and understanding of what's happening from some of the best venture capital firms, that's where we actually create these relationships that I think we're gonna be talking about over the next five-10 years. Got it. Within that, like is there any risk of adverse selection the clients who need lend liquidity and who you're lending to are probably more at risk? Like just talk. I'm sure you think about that, but would love to hear. Yeah. I think that's where it gets back to that relationship that you have with the venture capital firms that now spans, you know, 20 years, 30 years. How you act in times of, you know, pressure for clients, and that relationship to be able to support a portfolio of companies for that venture capital firm is really important. To the exchange of data that happens on companies for sure that are going to get that next fundraising round, and for companies, look, that might be headed towards a soft landing, those are conversations that we're having on a more regular basis. As that happens, you're certainly able to figure out where to lean in with those companies. I think that's where we have the best opportunity to be able to lean in with some of the better companies through the slowdown that we're seeing. Understood. Just given the visibility you have, in terms of customer or cash flows, going back to sort of the cash burn and what that may mean for deposits, how great is your sort of line of sight around the need for the next round of funding at some point this year, and that could lead to sort of a pickup in just... Yeah. ...core deposit growth? Yeah. I think that varies pretty widely. Sure. Cause there's a vast, you know, universe of different types of companies with different types of burn rates. I think what we see is on the main, that companies certainly have going into this recalibration more cash than they've had during previous cycles. Again, with every passing quarter, a lot of these companies get to the spot where a new fundraising round might make sense for them. That again, I think with every passing quarter is what we expect. Think about our guidance, and we talked about this on the Q4 call. We aren't anticipating into the back half of the year a big hockey stick recovery- Right. -In terms of the amount of deployment. In fact, it's pretty uncertain when that's going to happen. If you think of the dollars of venture deployment that we're expecting in the year, you're pretty much looking at almost Q4 run rate annualized. Yeah. In the year. With that, we certainly see, you know, overall a bounce back here in the second half off of the slower cash burn. Right. You know, in the second half of the year. Got it. I guess the other side of that is, I think a lot's been talked about the VC dry powder. The concern investors have is whether the dry powder will actually become reality and get put to work. I know, Greg, and you talk to a lot of VCs, like what's the temperature there in terms of their sentiment, confidence in making new investments? Yeah. They're still confident that they're going to put this money to work. While this money was raised over the last year or two, you're certainly seeing slower fundraising here in 2023. That vast amount of dry powder that's out there's a bit of a clock behind that, where over the next, you know, 12 months, 24 months, it's likely that they're going to need to put that money to work. You look at companies that are effectively burning through cash that may need a fundraising round. They're doing everything they can to slow that cash burn, and at the same time, that dry powder on the sidelines, there's a bit of a deployment clock associated with that as well. Sure. Exactly how that's going to play out, you know, over the next couple of quarters is uncertain, but I think you're going to start to see the two of those things come together, at least over the course of 2023. Got it. You have to imagine the year-to-date bounce in stocks. You've seen some IPOs go through and being received well within healthcare. Probably helps. Early days. Yeah. I see you nodding, just for those listening. I guess the other side of the other segment of from a client private equity, just talk to us around private equity as well, right? I think, remember I recall last July, Blackstone talked about they're gonna be slowing down spending, like some of the same dynamics around the future fundraising, but they're still sitting on record amount of dry powder. What's going on there in terms of what they're doing and how that's impacting the balance sheet? Yeah. Record amounts of dry powder, as you pointed out, in that business. We continue to see effectively some growth, at least in the outstandings on the capital call side, even in this very slow deployment environment. We also continue to see all throughout 2022, a substantial massive amount of term sheets that have been written. If you just think of the amount of term sheets that have been written in 2022, that's going to lead to some pretty significant growth here when that market starts to recover. I think you're starting to you're still seeing the same dynamics that you're seeing on the venture capital side as the bid-ask spreads for some of these companies have still not come in well enough for those private equity firms to put en masse large dollars to work. We're sitting on a substantial amount of, you know, effectively unfunded commitments and term sheets. Right. That, you know, when that turns, and that's going to turn into some nice growth. What do you think it takes for that to? I think it all comes back to the macro. At the end of the day, what's going to happen? You know, we just experienced the inflation print here. What's going to happen with inflation? How does that look, and do we have that under control? If so, I think you're gonna see more stability in public market valuations. Yep. That's really the big key. With that, people feel a lot more confident about putting money to work, at size and at scale. I think that's still, the predominant, factor that we're all paying attention to. Understood. Just maybe, switching gears, on the net interest margin NII dynamics. Clearly a lot of uncertainty, but I think most people you talk to expect some sort of a Fed pause over the next few months. One, talk to us in terms of what a Fed pause means for your margin, for your NI outlook. If and when Fed actually gets to cutting rates, does that benefit the bank or hurt the bank? Yeah. I think first and foremost, as we're looking at margin dynamics, the number 1 thing to pay attention to is where do non-interest-bearing deposits effectively bottom out. Number one, what we talked about is, you know, coming out of Q4, we saw a slowing in the pace of effectively clients switching into higher cost, Right. Higher cost deposits. The expectation in 2023 is that that dynamic is going to continue. With every passing quarter, the pace of that slows down. Yep. We end up, end of the year, non-interest-bearing deposits, let's call it in that high, 30% range. I think number one, that's really from a net interest margin perspective, that's gonna be the most important component. Okay. I think from there, to the extent that we start to see the Fed get to a pause, considering the amount and the beta that we've seen on the interest-bearing deposits, that's going to be helpful to at least, have a ceiling of the overall deposit costs if you think about where non-interest-bearing deposits land. Sure. To the extent that the Fed starts to move, and you start to see a reduction in rates, I think that is gonna be helpful for us because we're obviously going to be able to adjust that interest-bearing mix downward. I think probably even more important, as that dynamic starts to play out, I think you'll start to see more of that dry powder find its way-. Sure. -Into our markets on the base of much slower cash burn as you think about what's going to happen over the next couple of quarters. With that, you have an inflection point or net of deposit inflows, and then we can start to move some of those more higher costs interest-bearing deposits off the balance sheet Right. -Effectively pay down some of those more expensive borrowings. That's why as you start to think about heading out of 2023, we effectively called that inflection point from a net interest income and net interest margin perspective heading into 2024. Got it. Sound very bullish. We're doing a pulse check. Right. That's good. I guess, tied to that when you think about the VC deployment, the assumption generally is those deposits are cold checking account, like when the V... Is that reasonable? Like that should help your NIB mix as the year progresses? Yeah. I mean, I think, again, just looking because we get this question a lot. Right. The overall level of non-interest-bearing deposits sitting at that high 30% range still seems high in the context of other commercial banks. Okay. Again, take into consideration the entire funding. If you look at the total client funds, $170 ish billion effectively off the balance sheet and close to that on the balance sheet. When you look at that high 30% range, that's effectively, let's call it 20% non-interest-bearing deposits. It's a total client liquidity. I think that benchmarks pretty well. Okay. You go from there and take a look at the fact that we're a substantial amount of the business that we do are the operating accounts of our of our clients. I think with that, the detailed bottoms-up analysis plus what we see from a benchmarking perspective, that's why we're comfortable with that. Right. I guess at this point, do you feel good about in terms of just the trend of deposit pricing, Like everyone was caught by surprise last summer just across the industry? I feel like that's a little more steady-state in preempting customer behavior. Yeah. I mean, I think we started that early. I think you saw that-. Right. -Come through, the betas early on. I think you're gonna continue to see that across the banking industry and, you know, for banks that haven't moved quickly, that's gonna start to, you know, I think, impact their results more. I think for us, the continuation of that trend is really what we're going to see in this environment where the Fed, you know, is still pretty active and pretty hawkish. Got it. I guess on the other side of the balance sheet in terms of the $100 billion plus or minus for the securities book, remind us, I think there's about $2 billion-$3 billion of HTM that reprices every quarter. Just that dynamic, it seems like could be very powerful even with the current yield curve. Yep. On top of what I was talking about heading out of this year, you know, obviously there's still a lot of uncertainty ahead of us, at least over the next couple quarters. I think when you look at the deposit dynamics and then the second piece, the pay downs of that investment securities portfolio, $2 billion-$3 billion a quarter-. Yep. -Effectively coming off that book, you know, like a clock. As we did in the last quarter, in the available for sale portfolio, it may make sense for us to opportunistically, with the right payback period, effectively sell out of some of those positions, and just accelerate that pace of taking advantage of the cash flows coming off of that book. Again, protecting tangible book value-. Sure. -With the right, payback period and available for sale, just to continue to say that, 100 times. I think that's the way you look at it. With that, plus the deposit dynamic, that actually, builds some nice momentum heading into 2024. Understood. Just one last one around, in terms of balance sheet management. Rates get cut, like we've seen a lot of banks get into fixed rate swaps, et cetera. I mean, obviously there's a lot going on in the balance sheet already. Like, any sort of synthetic way that you're thinking about managing the balance sheet for low rates? I mean, I think first and foremost as we've done in previous cycles, embedding floors within our lending contracts is just a great way to protect. I think that's gonna be the primary form of protection. Coming out of the 2018- 2020 cycle, I think we'd embedded, you know, in the $30 billion-$40 billion range worth of floors. We're going to continue that practice as things renew. Okay. On a go-forward basis. In terms of taking swap positions right now, I don't necessarily think that's in the future so much. I think we've got the potential for the liability side to reprice faster, which is I think a real positive in that situation. Lending spreads holding up. I'm assuming we've heard a lot of competitors in capital call line pulling back or scaling because of liquidity, et cetera. Yeah. I think, yeah, we talked about it on the call. Nearly 100% beta on the capital call line side. On the lending side, technology, healthcare, life sciences. Obviously doing the right thing for clients, seeing a nice pull-through there as well in this environment. Got it. Maybe segueing to credit, you built reserves very early last year. At the same time, like when you talk to investors, the bank's much larger than at any point in the last five years, 10 years, 15 years. There's some concern around lumpiness of credit and, like, what that might do. Just give us a sense of... At least I've thought about the early-stage book as where the loss content is. Is that still true, and like how do you think about credit and how that might play into your reserve build over the next few quarters and charge-offs? First, as a reminder, Marc Cadieux, Chief Credit Officer, has been with the bank for close to 30 years, 31 years, I think it is. At this point, he's been through a lot of these cycles. As a result, we don't ebb and flow the credit decisioning process through good times and bad times. I think for sure where we're going to see loss content emerge, and we're well reserved for it, is that in that investor-dependent early stage. You come out of last quarter, we had about a 5% reserve rate associated with that. Through the 2008, you know, cycle, through the cycle loss rates were closer to 6%. You're sitting in a pretty nice reserve position there. I think that's just gonna trickle through as we go through this year. One of the things we did talk about is that I think you're going to see more lumpy, more episodic, larger, later stage loans end up in non-accrual and some charge-offs associated with that. Again, I think those are gonna be episodic. When we're doing those later stage loans, they're much more balance sheet dependent, and there's more there through with the company. You're effectively working with that company to help them execute a softer landing. As a result, you know, there's more there from a repayment perspective with clients. We feel like, and you saw what we've done from a reserve perspective in the year. We feel like we're covered there. I think you could see more of those, more episodic, larger losses. Okay. Larger Okay, right. The point is that the loss content or the loss severity of those loans will be lower than the very small ones. Yeah. that's why you see that in the reserve loss rate. Right. that we've got at the end of the quarter. Those larger later stage loans are where you'll see the occasional, loan end up in non-accrual and non-performer. Understood. I guess, maybe some on expenses, maybe moving to there, I mean, I think, it was positively received in terms of the expense. Now you're still adding about 1,600 clients a quarter, making a ton of investments. Just give us a sense of the puts and takes around expenses. Like where are the discretionary areas where you're able to pull back on, and where are you continuing to invest? Yeah. If you just think about the last couple of years, with the tailwinds of what we saw from a balance sheet growth perspective, we were able to accelerate a lot of our initiatives around our digital development, around the building of infrastructure. Think about our digital onboarding platforms as well as our online banking platforms. We put a lot of professional services, we put a lot of consulting dollars against that in the last couple of years to make faster progress. Now as things are admittedly slower, what we're doing is we're pulling back on the pace and the speed and the usage of that professional services and consultants. Think of it as something we can dial up in, you know, really good times from a profitability perspective, and then slow down as well, to the extent that profitability is weaker. That I think is first and foremost one of the levers is to reduce that amount of professional services. Okay. which was really substantial over the last couple of years. At the same time, we are continuing to invest. Think about commercial banking for sure, adding resources there where it's so important for us to be, you know, working with clients, especially in tougher times, and providing that advice that they rely upon. The second, around private banking and wealth management, this is still a really big opportunity for us. Sure. It's an area where we've recently changed some leadership and added Erin Platts, who is running our UK operation. We're gonna continue to invest in that at least in this year. Last but not least from a regulatory perspective, think about eventually becoming a Category III, potentially a Category II organization over time. Need to love those categories and moving on. Yeah. It sounds like a hurricane, but it's not. You know, this is for sure an area where if we're going to play across all four of our businesses, investment banking, commercial banking, private bank, wealth management at the size and scale to be competitive, it makes sense for us to continue to invest in that risk infrastructure. That, those are the areas and the how is-. Mm-hmm. -Is by reducing that professional services and consultants. Just maybe on the regulatory stuff, I mean, obviously the Fed is trying to finalize Basel reforms here. As you move up, like what should investors be mindful in terms of changing capital requirements, stress testing, liquidity? Remind us of what we should be prepared for? The good news is that from a stress testing perspective, at least the capital standards, even as you're heading into Category III, you know, potentially Category II, no big changes. In the composition of our balance sheet, if you think of half of the balance sheet effectively still being investment securities, the overall credit loss content associated with that from a capital stress testing perspective, is still pretty low. So I think even in that environment, you're gonna be looking at Tier 1 leverage as being the binding constraint at the bank. Mm. 7%- 8% range. I think as we move on from there, and you think about liquidity stress testing, the next step is kind of heading into modified liquidity coverage ratio. Mm. LCR levels. If you just look at the composition of the balance sheet with the amount of investment securities that sits there, that is quite helpful as we think about where that's headed from, at least a ratio perspective. Yeah, I think net-net, no major changes-. Okay. -To how we operate, the business with those items. Got it. Anything around like just when you look at balance sheet composition and concentration, like is concentration risk an issue, or is that a factor at all? I mean- On either side of the balance sheet? We're always paying attention to it, I think even though we're focused on technology, healthcare, and life sciences, I think the diversification of-. Sure. -Of the number of different specialties within those areas, and just the vastness of how we do that on an international basis, keeps us out of too much individual concentration, at least on the technology, healthcare, and life sciences side. Private equity, while that's a more concentrated lending-. Sure. -Position on the balance sheet, you think of just the makeup of private equity, capital call lending, and just the variety of different, you know, institutions and different businesses that we lend to, I think that also helps from a diversification perspective. While more capital call lending for sure, there's a lot of diversification underneath that. Got it. Maybe just taking a step back regarding the franchise like this, there's so much happened from going from the bank to the capital markets business, SVB Securities to the wealth management that you alluded to. The other aspect of investor sort of conversation is do we see the same VC boom that we saw over the last decade? Will that repeat itself or not? One, any thoughts that you have on that? Secondly, just talk to about the ability of the bank to increase the client wallet share when you think about all the products that you have today. Yeah. I'll answer the question on, you know, at least the energy around venture capital and the innovation markets. The number of conversations that we have with clients, and when we see what they're working on, and still the scaled leverage and the economics that they're getting, and the growth opportunities, you know, even with a slowdown of what you're seeing in the public markets and deployment, you're still seeing a lot of money go into seed stage companies. Last year, $240 billion-. Right. -Worth of venture, still one of the best, years out there. Yeah. At 130-150, that's kind of your top seven, top 10 year in venture capital as well. Right. There, there's a lot still... I think this gets the sustainability of the venture model. There's still a lot of money being deployed in those early-stage companies. I think that leads to the excitement of what's building. On the ground, on a day-to-day basis, our commercial bank is providing insights, and trying to help these companies that are going through a tougher time right now, and making the right introductions onto the investment banking side, as well as what we can do in private bank wealth management. Number one, I'm really excited about the growth opportunity and potential of these markets. Still seeing investment in that early stage, which is really the conveyor belt that's going to emerge from a company perspective. When we look across what we can do with each of those clients, on the investment banking side, commercial bank, and then helping an early-stage entrepreneur in private banking all the way through that wealth event, I think that just opens up more opportunities. Don't forget what we're already doing from an international perspective, which really just, I think, closes the loop on, you know, being able to serve, really all clients in this market. Got it. You mentioned earlier in terms of new leadership in the wealth management business. Has the strategy evolved there since the time of the acquisition to today? Just give us a sense of like client acquisition, what you're doing. Yeah. I think when we went into the business, I think, for sure there was a focus. Obviously we were gonna pay attention to private banking, there was a big focus on wealth management. Wealth management and the acquisition of teams. When we take a big step back, and we take a look at the profitability effectively of acquiring teams, that's difficult, and that doesn't necessarily pencil. Mm. You know, over a period of time. On top of that, when you're adding teams, you're not really adding capacity. You're not really adding folks that are just serving the innovation economy. If you think of the 1,600-1,800 new clients that we bring in every quarter, what we really want to do is to put people up against those folks to be able to provide advice. To be able to help them on their private stock concentrated positions. How do I do a mortgage? How do I get the tax advice at the wealth event? Really throughout that cycle, help and provide advice. That's, I think the shift in the focus is going from those wealth managers to being much more focused on the front end of that funnel, while at the same time, we've got a great group of folks that are doing an amazing job in wealth management, and they're gonna be there to help those clients that have the wealth event in the future. I appreciate early days, but so far, any like early signs that are encouraging in terms of being able to translate those customers into wealth management customers? You know, in terms of opportunities, in terms of, I'd call it, you know, the halo effect of having all of that business, I think that's the really encouraging part. Being able to see more mortgage production for sure, and the just the take rate and being able to have those wealth conversations. Frankly, just the client feedback, you know, once they understand the platform that we have, and the opportunity behind it. I think you're going to see over the next couple of years, growth in this private bank side, as we help these earlier stage entrepreneurs. That is going to translate over the longer term into much more wealth management, much more wealth management growth. Got it. I have a bunch of questions, but I wanted to see if there are any questions in the room. If anyone has any questions, please raise your hand, I guess. Have you seen any difference yet? Thanks. Have you seen any difference yet in the options or moves, I guess, available for terming out runway or raising capital between, I guess two nodes, one mid versus late stage growth businesses, and two, I guess sort of the best in class versus maybe the good but not best? Yeah. In terms of best in class, and you look at the dollars that we continue to see go into the market, you know, even at $20 billion-$30 billion a quarter, that's still pretty significant. Your best in class companies are still able to go out, able to fundraise, and that's pretty clear. They could do it at size and at scale, and valuations for the best companies I think are still in a good spot. I think as you get into the later stage, that's where there's been the most friction. That friction's been there in the market now for, let's call it nine-12 months. That's where companies, you know, clearly moving to slow burn rate as fast as possible, clearly looking, you know, to inside rounds. Then you get to the question of, am I gonna do a down round, or am I gonna do effectively a leveraged convert, or something along those lines in order to keep valuation, you know, at the right number. It again, that adds a lot of optionality to the cap table, at least over time. All of those areas are being explored, used in cases, before they have to go effectively to the down round. That's all in action, and we're seeing all of that right now. Any other questions? I guess, I'll follow up one, then. Obviously, the last 12 months, 24 months have been interesting. As we think about, learnings from this as you are better appreciator of customer behavior, balance sheet dynamics, does that impact how you think about the through cycle return profile of the company? Like? Yeah. I think two questions there. I think through the cycle returns, doesn't change my view over the long term of both the growth potential and the return potential of the business. I think for sure what we learned over the last 12 months-24 months is that in a fast-paced, rising rate environment, customer deposit dynamics are different- Right ...than what we had expected. I think, while that's certainly a learning that comes out of this environment, I think once we're through, you know, managing through that market change, you're, as we talked about in the back half of this year, starting to head back to more traditional levels of profitability. I'm still really encouraged about the longer term view there. Got it. In terms of just managing those balance sheet on balance sheet results, should we expect you to do things differently going forward than in the past in terms of how you thought about that liquidity? No, it all is gonna depend on the rate environment. Sure. I think we've got a lot of options, as deployment starts to pick up off of the backs of, and again, as a reminder to everyone, we don't need to see, you know, 2020, 2021 levels of venture deployment to actually see net growth in overall deposits. As soon as you start to see venture deployment pick up off of the backs of slower cash burn. Right that can lead obviously to net incremental deposits. From there are a lot of interesting options in terms of, do I wanna move some of those more expensive deposits in our Toggle product back off the balance sheet, so that'll reduce interest expense pressure there. You know, I can effectively use some of that net liquidity to pay down borrowings or think about, you know, investing some of that, taking advantage of some of the rates that we're seeing from an investment securities perspective. Those options are all available to us as we start to head, you know, after what could be a bumpy at least, you know, first couple quarters, you know, to the back half of this year. I guess maybe in a world where the forecast doesn't play out and we don't get rate cuts, or maybe we get a hike later in the year, I mean, Just give us a sense of like just the downside risk in terms of when you think about your guidance and what might happen if the Fed needs to be at 5.5% for the next two years or move to 6%. What does that mean? Yeah. I mean, I think the most important thing again is at that rate, did the Fed effectively tame inflation? Right. If the Fed's able to do that, and you get to some point of stability in the market, that's when venture deployment can start to pick up again. Right. As every quarter passes, the need for companies to actually have that cash liquidity and deployment, I think is going to pick up. I think that's, again, the one most important thing to pay attention to. If the Fed has to keep going here, you know, that, I think we're gonna see more of what we've seen here over the last couple of quarters. Clients continuing to try to slow cash burn, clients that are going to continue to take reductions in the form of people, in the form of real estate and at the same time, lower and weaker levels of deployment. What that means for us is I think more of that balance from a cash burn perspective similar to what we saw in the fourth quarter No growth, but more balance, you know, from a deposits perspective. Right. One last question. I know we have one minute, it might not be a one-minute answer. Just remind us, lastly, I think in terms of the global expansion, open in Canada, I think Frankfurt or somewhere in Germany, I guess. Give me a sense of where the global franchise is. Is that growth looking better today than it was 12 months ago? Is it looking weaker? Just. Yeah. I think the growth opportunity continues to be quite significant. You're also dealing with pockets of what's going on in the local economies for sure. Asia as a business has been, you know, quite slow here... Mm-hmm. -Over the last couple of years. You know, obviously we're seeing the reopening happening. That could be something that over the next year or so, you know, continues to pick up. Europe, the dynamics there, you know, still are pretty similar to what we're seeing from a U.S. perspective. Okay. That's a slower market, at least at this point. That, that's kinda the short term. That's what's right in front of us. What we do continue to see is just this great momentum in those businesses. We see the business model working quite well, you know, in those geographies. Again, that overlap of clients between the U.S. and globally is really, I think, powerful for the longer term part of the franchise. The, you know, all the growth in those markets, I think the opportunities are driven by what's going on in the macro, like we're seeing here in the U.S., but the opportunity is still quite strong. Right. I think with that, thank you so much, and thanks all of you for joining us. Thanks. See you, everybody.