Net Interest Income Outlook
Q: Can you discuss NII guidance and accretion outlook?
A: Accretion income will continue to decrease as shorter-term loans pay off. In Q3, net interest margin benefited from accretion by 20 basis points , down 8 basis points from the prior quarter. Accretion income dropped from $140 million to $101 million , expected to be around $90 million in Q4. We anticipate net interest income ex accretion to decline mid- to high single digits in the low scenario and mid- to low single digits in the high scenario by the end of Q4 '24. Net interest margin is expected to drop from 3.33% to the low 3.20%s in the high scenario and to the low 3.10%s in the low scenario.

Share Buyback Plans
Q: Will the elevated pace of buybacks continue?
A: We plan to utilize the entire $3.5 billion buyback authorization. Through the end of the year, you can assume a similar pace to what you've seen so far, then slowing down next year to reach that amount by Q3. If earnings continue to outstrip risk-weighted asset growth, we would consider an additional repurchase plan in the back half of 2025.

Timing of NII and NIM Bottoming
Q: When will NII and NIM bottom and begin growing?
A: We expect net interest income and margin to trough in the second half of 2025, regardless of the rate scenario. This depends heavily on both the magnitude and timing of rate cuts and balance sheet growth.

SVB Loan Growth Prospects
Q: What is the outlook for SVB loan growth?
A: As the market recovers, we anticipate loans and deposits will grow at SVB. Lower rates and the expectation of lower rates could be a catalyst for growth. There's nothing structural causing the decline; it was related to payoffs towards the end of the quarter. Average loan balances were higher than last quarter.

Competitiveness in Capital Call Lending
Q: Are higher repayments due to competition?
A: Swings in capital call lending balances are due to borrowers keeping advances out for shorter durations in a higher rate environment and muted investment activity. Average balance growth continues to trend positive. While there are new entrants, we remain confident due to our long-standing fund banking practice and experienced team.

SVB Deposit Trends and Outlook
Q: Do you expect SVB deposit flows to pick up?
A: Deposit balances were flat due to diminished venture investment activity, roughly $38 billion in the quarter , and increased cash burn. With the first 50 basis point rate cut and potential for more, we hope this will unstick the market, unlocking the substantial $328 billion in "dry powder" waiting to be invested. We remain well-positioned for when investment activity picks up.

Floating Rate Loan Exposure
Q: What is the exact percentage of floating-rate loans?
A: In the total loan portfolio, 64% is variable and 36% is fixed. The majority of variable loans are tied to SOFR with a spot rate around 6.90%.

Excess Liquidity Redeployment
Q: Is there excess liquidity that could be redeployed?
A: We have approximately $7 billion to $10 billion in excess liquidity that we could potentially redeploy to pay down debt or invest in earning assets. We manage liquidity conservatively and will look to take advantage in the future.