SNV - Earnings call transcript Q1 2018 | Synovus Financial Corp.

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Operator

Good morning, ladies and gentlemen and welcome to the Synovus First Quarter 2018 Earnings Conference Call. At this time, all participants have been placed on a listen-only-mode. And we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host Steve Adams, Senior Director of Investor Relations. Sir, the floor is yours.

Steve Adams

everyone. morning good you, Thank

and During team the and Investor referencing slides with Stelling, will section our will primary presenter to today, release that answer we today, Chairman Kessel press synovus.com. the executive our be Executive are Officer of be management the our website, call Chief available available Relations questions. within your

the statements. result and you in developments or actual new These We factors except release any started, get materially comments available our we and not materially. that information, uncertainties, as could in which are I’ll otherwise, assume risks by results remind required may on a and are our vary obligation to press forward-looking list law. statements that include of results Before SEC We subject any do our might our to forward-looking to may early the cause website. update be filings as statements differ

we financial reference call, During non-GAAP to measures the performance. the will company’s related

You in available If questions, presentation. queue the to to we will limit questions. of time it ask Stelling. of more number have follow-up. that for appendix these initial you. we do over callers Kessel your measures may to now the Thank our you turn Due two to after initially the reconciliation everyone’s I’ll we time see the we have, reopen And

Kessel Stelling

members. quarter earnings the presentation myself going Thank you, any I’m as first open then Steve and everyone. call. and questions line we’ll our good morning walk for to the usual, us to or to for through earnings Welcome

of increased demonstrates year-over-year. year, for quarter discipline the also versus expenses our while which by efficiency The the strong quarter. revenues total adjusted first the first ratio leverage adjusted Our quarter the XX.X% continued evident is XX.XX% managing operating for last X.X% expenses increased

And, flat a year balance XX million from $XXX.X a of and terms returns, ago. ago see XXX or versus the XX.XX%, up and grew or non-performing perspective, versus a with points capital average an X.XX% year capital efficiency the adjusted a basis management return we $XXX.X deposits the in of ROE loans increased year basis year ago. for quarter assets credit with continue million overall XX.XX%, previous quality side, the in points improvement a X.X% on basis sheet up average improved ago. equity and Adjusted quarter improvement was points On X.X% year ago. From ratio to tangible average a from from a XXX to common lastly

in X, annualized end period on overall was X.X%. basis increased million loan portfolio largely slide and C&I average driven activity of or the million decline same portfolio. by portfolio our annualized reflects $XXX.X loans declined or million C&I $XX driven is or balances. $XX increased loan Atlanta. $XX performance the annualized. development payoff [indiscernible] or by velocity the originations grew average unit $XX.X in $XX million a quarter seasonal $XXX million our million result X% Global $XX line the as on lending annualized base on end investment annualized The up Period $XXX.X quarter. well despite $XX.X up X.X% by The a decline decrease total grew sequentially the CRE in sequential during Savannah, in position $XXX.X solid a Columbus million. growth X% was million. while Jacksonville, the million or portfolios partnership decreased Consumer specialty a The mortgages graph loans slightly and quarter HELOCs properties million, the amounts portfolios or as with utilization. to year in and X.X% decrease land Consumer the CRE $XX continued portfolio unit increased across X.X% Moving million of compared loans Remaining $XX.X a loans Birmingham, increasing million, The increasing in primarily lending mortgages million. asset strong to ago, quarter portfolio. represent growth higher One non-strategic

loan While likely year. through the expected continue asset of sales payoff elevated end in the will remaining

the production Our construction the expectation is new pick up the of and year. second draws during will half

billion the total or to average the to deposit deposits in slide loan X.X% balances average $XXX ago. it was time million excess versus X $XXX of million Moving a deposits, decreased deposits. increased decrease total in of but sequentially, year due of brokered $XX.XX Core

quarter or to versus X.X% $XXX X.X% Non-time the quarter and a year a the the versus deposits increases period deposits during contributed Additionally decline. previous decreased the million or core same first temporary ago. quarter increased fourth million seasonal $XXX and

we the $XXX increase product approval product and totalled an March sweep as of will of due balances deposits XXXX our $XXX During quarter, report million core a the by average the XXXX, report million Securities of of obtained it the money for to a of result Synovus market core offered component This deposits. deposit February these reclassification. accounts in brokered through quarter as in as to

X.X% second momentum a a the year million versus quarter the on the strong $XXX increased half period and $X.X sequentially total deposits increased of billion ago. same Given end of basis, or period

ratio within deposit our remained XX% stable is our targeted which at Additionally, range.

$XXX margin $XXX.X was the for margin to ago, $XX year or increased rate annualized XX The security million slide driven versus basis ago. points in position a reflecting of the shield X in of XX cost interest the cash benefit points from by of the points well roughly to core growth $XX XX.X%. million during the increased senior income net which was interest basis basis of up $X The basis from point yields on as points XX income open to funds X.X% a the quarter net points is interest The term basis quarter XX improvement for The points basis and XX due decreased in the funds period offset X loan by the increase XX% expansion. March interest was quarter well fed basis bearing a investment as cost quarter, basis point X as points. increased previous a interest improvement sequentially interest December deposits largely the count] from to previous of points core debt refinancing the represents basis X, our XX the of increases, data and income. million as December partially year million net for increase XX a up short deposits million or by bearing in cost X.XX%, basis Effective quarter and quarter. the to previous income compared in increase net is net driven X on [lower increase increase same increasing Moving our loan interest day

increase rates and products strategically deposit to various segments. in continue We

the the overall our and additional on as core given deposit cycle rate interest well XX approximately discipline, pricing the is appendix However as beta information bearing includes date portfolios. loan to the Page securities sensitivity on interest in X%. investment

a quarter X the income $X.X slide versus $X.X down for the quarter million $XX prior and down same to million, million year fee and period total the versus income, non-interest ago. Turning

respectively. the value net the decreases First private $X.X from quarters in equity of of and XXXX impact fair XXXX $X.X of million investments included million and

Fiduciary/asset X.X% increased million. or $XXX,XXX million million non-interest brokerage, Adjusted XXXX same same versus driven due first and $X.X growth quarter year-over-year quarter $X.X of and sequentially income revenues. primarily net sale in and of ago, $XX banking and X.X% increased million revenues by Core management, million the XX% the of ago versus growth year insurance $X.X securities million and a year X.X% fees XX.X% versus year or revenues $XXX,XXX period investment gains the loans. to $XXX,XXX trust of in period $XX.X brokerage XX% the and versus significant growth includes gains a or of Additionally, prior $X.X ago. a million SBA or increased $XX a from sequentially

Additionally under customer in the management last accelerated continue to by bring select wins period versus evidence XX% new business talent same growth in bring markets acquire our strategy assets in and to growth the year. key

XX% growth new which family year office to is business revenues start our a and a unit offices the in Atlanta revenue period ago, XXXX up versus with Nashville. Our includes from off solid same

million ago. Current year slide of expense million non-interest Turning litigation total a and benefit $XXX $X.X includes sequentially accruals. $XX.X XX% decreased period a X, or decreased quarter billion contingency to the reduction same versus and the X% from

offset XX.XX% down efficiency non-interest the will million of employment expense in resulted sequential increase seasonal slide million advertising Additionally, decrease from the year portfolio from from well. increase $X.X decreased or million points XXX down operating for fourth $X.X from a basis was that points Adjusted to continuous incentives X.X% sequentially decrease XXXX by XXX adjusted basis and million Strong $XXX included see period perform $X.X in $X extinguishment quarter up of an a quarter million million ago. and The X, and driven quarter our is million of you debt. early or On leverage partially the year same ago. a by the $X decrease $XX taxes. loan quarter ratio previous X% loss

basis basis basis shows to XX ratio versus basis XX trend. and decreased year ratio points points The a ago. remained X ago. The by versus points delinquency a the NPA, by NPA NPL by and from graph XX at prior points NPL and quarter sequentially First basis decreased flat XX increased year point

million considering annualized, as very points. levels points quarter sale for expense to mort quarter in basis XX previously the annualized with compared take pleased actions quarter million annualized the our was quarter points points NPLs remain at third year for for line $X.X or at ratios. allowance was assets expected Cabela’s at as increase, of that NPLs are the portfolio reserve represents able the million the associated fourth for basis been is points an loan charge-offs, levels quarter first $X.X from transaction large was basis XX due X you and ending $X.X the or if due Coverage which the charged-off. basis low healthy a expense with million, first a was the the in the been the sequentially, solid, Allowance million basis a Net fourth lower XXXX. basis the up provision covers Provision and loss $X $X.X result ratio expense the were loan or an losses in increase point. loss $XX.X of expectations coverage for We which were loans sales impaired very million reserve loan dues XXX% ratio excluded past million held $X or has year increase the quarter strong Again quarter ago XXX% a we led $X.X is quarter by to charge-offs XX of has past loan X quarter, to X.XX% to million down provision to first by X of loan in from the quarter, ago while a down remained in fourth compared the increased was ‘XX.

above our by well X to benefited capital slide. Moving accretion on continue strong continue capital X regulatory accounting the well described remain points earnings which be XX, adoption requirements, ratios capital growth, new in DTA regulatory slide footnote of capital of basis as as as X to to ratios the standard, from increased levels

Also period is with You common DTA increase will to end points in basis ratio now and see expected, equity and the decline balances. the quarter total loans X the ratios during due million. to tangible declined the continues cash the exception all the X.XX% disallowed of $XX to which as that increased

but of year during per $X.X of $X.XX quarters stock results increased earlier will our us the guidance that expect results. X% to are perspective, share price million, dividend repurchase average of compared previously in outlines only stronger this quarter loan slightly we first per ago quarter, track share our our sheet up our the our upcoming deposit common with remains the From XX% capital program on share year. stock $XX.XX announced included our this month, below momentum which count quarter unchanged X% actions announced to the or XXXX million Additionally $XXX along share reduced and $XX the XX in our of balance to year. part growth our annual guidance, sales X% previously total reflected to stated and Slide see to the million is shares a common put for we deliver and by repurchase of first

this currently for exceeding point. net-interest great number year, are the at our hikes betas we are maintaining the but on giving We around income of guidance associated uncertainties deposits, guidance our the

rate September high. on reminder guidance a March As anticipated our and

We momentum in to non-interest a great continue the and investments are to equity fee markets of growth up range. our volatility softer mortgage positive producing provide drive deep are businesses will X.X% a despite the that start with income environment, and X% growth and to in for XXXX to income expected X% adjusted increased

effective our the previously XXXX We NPAs an expect keen the underlying previously XX with X% see effective continue in we We the range. to NPLs, to total tax as estimate first of flat X% expected opportunities, maintain future as quarter tax the increase XX% significant XX% productivity. below charge-off that changes was larger recoveries the slightly quarters rate between year, for the a share to not net of credit XXXX to do than is environment quarterly to expectation to the We have focus while to will range within relatively on slightly or in XX expected quality tax revenue rate range continue occurs remain in as quarter, modulate. the ratio non-interest for for a for to expense We continuing our based basis and producing to the will efficiency be continue the stated rate, benefit year. result with disclosed in compensation, given invest associated be higher points the in first

future to And of may announced and uses In for million the the expect We to also XXXX, beginning capital. and timing we at loan year, to of reserve share continue in above the alternative the ratio organic loss depend and of we level will repurchases, continue will the size situational have up of quarter be authorization X%. as the business repurchases. primarily growth $XXX of

goals revenue effective close organization. to our out of continue due a those to we the towards return, achieving make one previously I towards and work targets, all progress As do order We on I defined more tax - first focus that know significant our on in and of to comments sustainability XXXX. and growth, strong We not our mention impact reform, three efficiency made my and create quarter goal. continued growth year in progress quarter does but the have didn’t our the trend efficient to

positioning also making are our initiatives the drive growth. good and implementing We progress, improve and key competitive enhance customer experience,

energy new up wrap talent both customers completed of in strategic among all this we five of are end our Our And, our expanding build to presence branch benefits by states. across The our to already change members and be both locations. recognition brand greater brand [indiscernible] ATM unify refresh transition markets. June, and are the our will month, momentum next around through the of team will acquisitions and and servers we continues seeing

callers again line operator So, the up any that with have we that will to ready senior for And, our our questions questions. we here team and might open take have.

Operator

your affiliation question. Please then pose first Instructions] coming [Operator your Our from today Gailey. Brady question is announce

Brady Gailey

good With morning KBW, guys.

Kessel Stelling

Brady.

Brady Gailey

as So, in expense of you any at look I and versus did mean, bit. the expenses, least lot down your it if it little see beat at not growth, was but you morning this only actually came earnings me as a a core expense sign, not soon

which see to expense maybe just will going you continue signs on growth some how start on comments here? that expense actually there And the think expense think So, are shrinkage? some then will on opposite, you growth see about forward, do to signs from

Kevin Blair

I Brady, is Blair. take this that. Kevin will

So, are you right.

as make credit that quarter our low the quarter down but and relates environment credit for sure ORE are we just part year-to-year benefit we year environment $XXX that we loans in I in in of that about properties mention us have those expenses, Cabela’s basis, the losses. of this credit portfolio, many $X adjusted transaction million last make have receive as it continued had I’ll ORE the our to as we it For we of benign where puts on primarily the sale, sold moved a did expect expenses, to million have some held and we

as in that to first be was continue won’t we’ll quarter. strong the So, probably as it benefit, have

If quarter, you investing to personal the we producing revenue we’ll do in as of look continue earnings lines at in increase and other are FTEs to we expenses last continue we share the some our that. presentation

moving range. will think X.X% I to you the So, see X% personal at line

categories, We so team in that in of have abatement on depreciation at We the continuing system, are to the mentioned, grow, going continue whether to much the it - total be as we some to bit our fees, expenditure do professional capital Kessel server to ATM as XXX will we expenses forward updates XXX hope line of towards digital year loan beginning we and just the projects renewed to refresh, And, is mentioned a whether to in low be the of as range. our cost. continue little roughly that some the of to the end expense where and to more vendor we’ve gotten so guidance range. other we’re Kessel think come related the have guided going our that refresh,

merit So, have some middle in quarter. after just in the the normalize, do see quarter increase increase we adds but in we expenses about $XXX the year you million of mark in that will over it because next July then process the of per may seasonality, an have which million our $X

the efficiency quarter will So, in loans bit I payoff. there we’ve starting X% total little that quarters towards to pleased expenses, growth around back we be increase that some but about which push well, us think we to are in a said, pretty as of are X% the first all think with will had upcoming the

Brady Gailey

know loan the second But kept then CRE some more growth? range my when shrink it a X%, of and maybe to stops X% bay bit, to you I like you optimistic why loan you All that’s you potentially on period when year little a comes the have are right, back growth. CRE end shrinking it of think looks the at grew is is the sounds on question growth And, loan could see continues basis to loans X% CRE do just and growth. it like that’s helpful. half about

Kevin Howard

I is Kevin and think quarter little see in were quarters improvement, the of and it the third Hey some quarter. in We the $XXX did I’ll CRE this Brady, take maybe $XXX this shrinkage million that. less $XXX in in one guess, in I the quarter fourth book, we was Howard and the right at fourth

we was are probably it and So, still much up loans we starting put but it of May the XXXX high, for to from a while the the quarters, now to starting velocity. are they pretty typically payoff year previous the two about than less construction last higher at also on fund

it of breakeven come the has close that book of run hopefully small the growth that drag would in half about very Our pretty see down base CRE so some be maybe there, the less there. that of non-strategic our in breakeven, a would year a second other to be quarter net thoughts part Cabela’s the maybe the will we that equation been we’ll have on not plus there and the is quite second to book, transaction, after successfully the

been, going thoughts, factor. but high, being - the as as not it’s payoff really construction not a sort it up of our telling components, it’s not I’m non-strategic you those to going it’s much and the of not three between be velocity, has So, much

the kind here positive a that’s net to book. the hope of yes, at think CRE about now, net, zero, a that’s the and year of we we between if were of on bit lift, at million year growth we’ll we get end year if because right you negative big last point, XXX the about right, negative it at So, this net, us XXX thoughts be so a net, you’re to our have little even for think it’s

somewhere of that that’s breakeven kind on maybe around that area us the the mark we So, and our and XX% still in big we the to probably will end so X%, X%, due momentum X% that and the around somewhere C&I to gets if we there can we the believe X% get range of to get that of then consumer some period, all those X% will do kind got to somewhere a continue components. side, lift confidence stay

Brady Gailey

you, Got it; thank guys.

Kessel Stelling

Brady. Thanks

Operator

Thank you.

from next Taylor Our please pose question. coming is question announce then your Stafford, today affiliation

Taylor Stafford

From guys. Stephens, good morning

Kessel Stelling

Stafford. Hi

Taylor Stafford

follow Hey up Kevin Blair, I on wanted to maybe just and expenses. start

getting it then X.X come the sounds I for so merit appreciate ends. like $XXX in the from above up will the QX think commentary increases, step that So, you and million get I the low back

leverage is Beyond appropriate ‘XX, for level of what an operating Synovus? do you think

Kevin Blair

two we in the little We for than the rate have think continue expenses the the years X% fact that we on environment, ‘XX, liked we also We’ve past, our more the we’ll we given operating especially bit role said it on X% in that of two to times that said upcoming depreciation. think seasoning forward our during to times normalize and a so will range raising just leverage. maintain

So, if had to growths roughly could the we all high single X even said, that believe that digits, revenue leverage. at times back still operating come in we we

Taylor Stafford

the that my [indiscernible] I to question would Thanks into is excluding basis and margin, just up. so from okay. up you that think the betas had cash it, you . second clearing points be thought around the quarter And, that drag Got X quarter margin last for then XX% X first

and that December the that hike reasonable March the X I QX hike, given to post March guess guess X points? I expectation a is still just for basis So, hike

Kevin Blair

the as around rate XXXX. X around coming got is X X that refinancing quarter our forward rest that future basis would to XX it put we in of for hikes the that think in is the vein the cash, debt, we us expect but we and year close last given we Yes, quarters out for somewhere expectations points basis to increase hike, that what what points of Taylor benefit we future XX thought rate to the would going lower with XX of and plus accumulative think this

said Now of mentioned an we the the on December so we moving XX X as up Kessel ramped March only then XX hike, during we determine hikes obviously scenarios, up of had but amount, the betas assume that are for materially we so will each we’ve beta, any we in future beta beta, rate of really but hike hike this stepping hike, assumed rate each each beta rate had expecting the good XX rate our for and those rate it’s for observed quarter rate thumb September rule past yield XX% of hike, then thereafter that forward. basis beta would point for a and to the X is we

Taylor Stafford

I’ll clear, guys. out. very Great, Thanks, hop

Kevin Blair

Thanks, Taylor.

Operator

you. Thank

Our next your from Please coming Demba. today then question. affiliation your question Jennifer pose is announce

Jennifer Demba

morning. Thank you, good

Kessel Stelling

Good morning.

Jennifer Demba

Question announced their larger on banks this of community quarter. couple sale M&A, area Atlanta

lot Just the scarcity in of in wondering now already you’re larger acquiring thoughts franchise a interest very of left a point your terms in community given is what or just large this at now? M&A bank? in the market scale this And, banks general where Atlanta

Kessel Stelling

kind are have that and throughout thoughts changed, what love Tennessee mean, the of Alabama. do do would Carolina, we input typically other were payback frankly and with quite relatively we proud get, get to would in like need a Florida, states very we and and our save there Yes, what’s we on cost it would that aware might actions increase works very lot remain note transactions you integration, general there Atlanta, again markets we operate interest scale to Jennifer M&A have we’re is about of in good the to of South which where in short what that to consistent I’ll our strategic and to Atlanta we I again both like have in

we we’ve us So, where increasing would appetite returns our again us internal on give currency a the wanted to intensely allow to to that focused compete. hasn’t changed, compete

how has in performance, with So, markets continue we’ll again responded, no with evaluate different opportunities of the stock pleased operate. our all markets, pleased which we view in to change again we’re in are we we how our

Jennifer Demba

Thanks so much.

Kessel Stelling

Thank you.

Operator

Thank you.

is today Please pose Our coming next question Milsaps. question. your then your announce affiliation Brad from

Brad Milsaps

good O’Neil. Sandler morning, Hi,

Kessel Stelling.

Brad.

Brad Milsaps

margin. want XX just falling change market Hey the delta consistent of in sort affected been has you that are would pretty or Kevin, to otherwise anywhere that points, quarter of that each each on up The from fed rate ask seeing change XX anything loan that this future in back that with to with yield increase? basis increase about the

Kevin Howard

portfolio at it's see tax to compression of the the all came is margin we as Brad relative you of XXXX a just points it’s not starting beta people for it's we been we back so a our in classes cycles are see sent And loans across and track hike fairly is so a betas, production first some and reprise earnings quarter, back reform. we landscape roughly to deposit noted stable. the largely good loans question. have around as see said asset quarter really this I uniform. had X on What to lower only a to we if the it it are to call starting competitive loan But basis starting tracking, giving XX we that quarter to relates fourth We’ve but yield related are where roughly our primarily our function asset changes at to it XX% relates XXX about over been tracking look what we reform. our little our been but rate betas and and XXX are new to tax we as for

forward competed still think of do rate reform to get hike. So, data XX-ish each some the going is see to We going benefit we side expect from on the asset with tax away.

a to benefit to going as bit, to X to so, position that leave going basis asset-sensitive points are So, to are - Taylor in we’re be little earlier, the still still I per us XX% but we moderate X said an will position, quarter. it's

Brad Milsaps

into this And, balance the helpful. the bearing right other That's from well repositioned much would finished? expect reflects of much quarter categories, balance of Cabela’s are with of pretty the just some of liabilities sheet? you runoff the is as you you pretty remixing how of pretty average more In a kind words, follow-up, side various you etc, or finished continuing interest things, want some that that

Kevin Howard

Yes mentioned of Brad, as of deposit was basis, decline broker that bit deposits quarter time there of there seasoning our just still the run a a goes about mature legacy off. I on a and think third sequential tweaking that earlier little of on will Kessel a some is

billion like of some year. today do back rates about We very look of where if at funding to as came where we to relative the effective continue will those and $X.X last XXX that that fourth were given source think a us. deposits acquired you at are rate for quarter then on the they the We that we in

So, the will as are find continue evaluate they would alternative setting to relatively cheaper some sources but portfolio wholesale of categories stay trying there funding, to we sheet today I the on generally the balance will say flat.

Brad Milsaps

Great, much. very thank you

Kessel Stelling

Thanks Brad.

Operator

Thank you.

Our your next announce Bush. affiliation coming pose then your Nancy question today is Please question. from

Nancy Bush

is C&I that loan anybody competed the from CRE this competed this had tax said happy we morning, and getting bit, little savings guys. are there point banks what that brought I that you that What much up than reform softer community being away. at If issue very away. can demand dwell as Research. anticipated loan issue demand NAB the into hearing is demand this I’m is demand, Good you was pricing the is

this that coming optimistic up going the so loan going change everybody quarters? to demand is in pick suddenly why and to is So,

Kessel Stelling

the whole take speak mean, so share our a tougher to and then our just your start speak not will on I’ll that Kevin optimistic those so more color digit I you own with been so we but and our result have CRI but I you again Kevin some I of sees good there closer ability of optimistic, to been things. we maybe have Nancy, There activities in activity, based question. and to steady are some where going that certainly some the any below portfolios pipelines let non-strategic loan see are the thoughts. range and I of with at for get because us end activity guiding you our X% and are activity that category that I’ll range. you part double really his When about sales so say think he and robust will I’m Howard let we - and that And, disciplined X%, achieve has not for can't far growth of they’re we take on others, to pockets same as good driving as down land, know give give for can't particular you.

Nancy Bush

you. Thank

Kevin Howard

if think X% a that. not had expand our other $XX mean growing on million forecasting that kind us, have just again had, it's we will break we quarter. momentum We things right. a I to low like thing side get got C&I don't I the don't have to with something of I tremendous $XX They and think range think area and We up of We’ve company product momentum got we an ago. consistently. is years double can bought a there here. for the base million. to We company. couple quarter add-on That just premium million And on grew an our it think X% that for fall pretty yet opportunity Nancy $XX-XX million ABL. is utilize with I years. us only we couple is in was growth good are We still we early here about like insurance fully we of we digit this are $XXX

growing pretty are business consistent. We small

is big consider I $XX-XX scored X it’s runs that It's spend. straight but or I We utilization much is I’m in utilization robust, bit our in telling going to is see last part that a up quarters think is demand million, down line to $X there of are X I singles, some we be C&I have think CapEx grew not pin half there a not think a of in opportunity no actually little year, of you over there. kind under and low has early translated in end, bit, good signs But is lot we there some the growth very you that. lot like think reform the loans can't C&I that like it year. there. the home business into million tell of small little been utilization; our the looking has good I at year feels our economy but the increase and grew other grown just of tax a our we the yet, economy,

competitive like for but growth So, to we not calling out us get we have very it double - again but that it's just grew on our and can that the better, be are heavily. We C&I I’d there digit to is place invested a We it think market. million million. $XX or quarter revenue $XX million $XXX last we $XX grew that we in there million middle

we five good and is as of X% had, X% pockets in this robust that’s have the think quarter can this of four, invested is there and year. we things some numbers close respectable have there So, were years our usually some We and get kind not seasonality. we growth quarter we C&I this to last because

side So, we been and get on again of good years. mentioned heavy, we couple over we have on think payoffs we think there but last CRE as construction I the get loans very we the put earlier there can can

We robust not that's number. asking - are to be going for not

in will in of Southeast. is good pace the breakeven last for then just grow decline digit year side positions have get think strong We company are couple as but to looking And don't in our we the there can this the it I we able the there. - it had mortgage of as years, double have the versus have company mortgage been on good couple growth the equation, did last us are the at consumer over you at of years.

I reason solid have continue digit don't why that double see this growth We any economy. there. in won’t

had, that it positive. of couple and think area I but it's will as this will over that we that years. in think you our grew we be have still as last so have much don't grow year, grown partnerships, relationships an as So past know, our the far

the So, there are a some that this where we I but lot definite some reasonable things working got against can this, have not it's growth. loan think to and on in execute loan in year get it demand competition, of we but

Nancy Bush

mentioned targeting I Kessel finally maybe you that's hiring asset you’re Okay. beginning particular question. like fiduciary get just Thank is looking you It where and to you. in could opportunistic looks or ask the more markets this one management. Are of for teams. some if traction And, team home? find you

Kessel Stelling

many is won’t we platform markets, for too dividends. I we additions, teams. additions, where that talent great culture good again another but are and other Atlanta they plays success where saw where standpoint It's from not well, and our identified successful of optimistically several good had us growth, get in certainly into and strong again be in name the are well, our are as growth growth attractive very good but high to are have both but Charleston I those one brand that's Nashville, more high there revenue opportunity markets high we’ve we and we we our team And because comes and as may had certainly can in intentional markets think markets mentioned mind targeting but opportunity paying for plays we

Nancy Bush

thank Alright, you.

Kessel Stelling

you. Thank

Operator

question your question. Marinac. pose next Our coming Christopher then is announce Instructions] from affiliation Please [Operator you. your Thank

Christopher Marinac

wanted that Atlanta, I are good on behind [indiscernible]? FIG going investments you’ve team Kessel, about not success the we expense to Hi, Partners What had. new are to Kevin and ask morning. seeing the in scenes

Kessel Stelling

talk a been we color back but board the to loan off facing a season to Blair intensity cybersecurity ability experience. things a let and you about ball into grow, Kevin desire our to are Kevin over dollars strong customer but extreme of is a that don't lot portal origination I’ll time. to this investments give more lot we focus other I systems, as customer the go include XXXX experience year The emphasis eye put you you going like take enhance and our further, will new going from have of that just platforms continue know There budgeting new little a will let and we technology where spend will both little headcount, on and right. customer Chris has customer there.

Kevin Blair

to million running Kessel from are focusing at of and and we it a So all that because aspects of perspective are $XX million CapEx benefit investment in to we’re receive going are out-year. $XX expenditure, the revenue we annual mentioned on we looking

allow So, that efficiency better looking out about going for whether that think ATM here million but we investments or we list any ways to do our to I and what client the and or talked today and don't all we the find at it's decide prioritize year, would things Obviously we processes refresh or that do platforms we digital each making experience. it's should if be like making not are there a is of are we we to and the investments. making. a want to technology

of we to and scale with we what talked able up to those our have functionality are from our some continue and each to be products perspective with have year our feel keep budget like We the enhance about we have that to competitors. large enough ability need we customers

So, I competitive. think we be to are doing to everything we order in do need

Christopher Marinac

know organically grow asked get market cannot And, this Nashville you you I good acquisition, feedback Atlanta. follow-up, Thank about background. If an for but incremental a the gave success? question Kessel is in that great. about you on a that I have That's still Jenny’s just and Nashville,

Kessel Stelling

Yes, our and for we producing product. is Chris great family of market is I both along one In reception a team a Nashville McNeilly there - senior new three offices Nashville market Nashville Rob mortgage and leader weeks we is secondary of attended with our us. portfolio two, have several in best our members Nashville office. ago.

additions team. strong had have the to We

banking grow believe do who market, good are. Nashville we great competitors love a the where we can got It's know we competitive But market there you is So, they organically. have we a city.

customer I reception a show there. like company support say, prospect is and couple try Our that to city ago weeks in we with committed of to up the

growth So, just the from company like Atlanta, standpoint. for Nashville organic opportunity has great

Christopher Marinac

Thanks guys. Appreciate it.

Steve Adams

Chris. you, Thank

Operator

Thank you.

that the We you further queue at in you have to any time. closing have like Do finish questions this with? no would comments

Kessel Stelling

will group I we’re our Yes. banking of call. interest of Thank of are our a footprint state good for really attracted as company the efforts X and saying and continued I due great communities. who start dialing the team to everyone again this our Thank your serving XXXX the in and I off And, members started just way in close to thank way that's for and across call customers to to of our and outstanding customers you of support by want really you. morning.

are We excited unified the brand. about transition this Synovus to

As I end complete be It's well. very going by of the we’ll said June.

it. excited by gotten again name energized And, I really who seeing from communities are have about the footprint. are members feedback our of customers the across and team also of our presence Synovus Our lots growing

we great again hope the earnings, will stay good everyone continued of all appreciate you efforts very of team much. next day. We has our tuned we progress. year. what look the a our and be really can our very of rest forward Thank a for we report on Hope So, to

Operator

Thank you call. does ladies conference the gentlemen. conclude and This

Synovus Financial (SNV) 24 Apr 182018 Q1 Earnings call transcript