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. "