our first earnings Well, thank XXXX to you, Steve, to quarter welcome and good and morning call. everyone
team. walk presentation, then line and As for the usual, morning earnings the I’m us we'll through Synovus this our I'll joined by open leadership questions.
performance. a high deck on first earnings X, level quarter start provides our in which I'll the So summary of financial Slide
on merger-related $X.XX acquisition X.X% Adjusted previous which expenses up excluding this $XX.X from was quarter completing the the a January a in was quarter. impact year-ago. XX.X% million EPS diluted the EPS an quarter's which results. by we FCB quarter EPS same As material acquisition the for the period we’ve basis, of reported, up impacted this began and associated on X, On adjusted already Diluted had EPS by with FCB $X.XX, from $X.XX.
generate and impact during the organic million respectively, sheet to quarter excluding $XXX $XXX loan continue with acquired end million growth deposit solid balances. of the We period of growth balance
also tax higher of tax state period, compared other rate increased nondeductible This quarter's results higher effective taxes. expectation The at during incurred to effective merger-related due XX.X% largely a to and reflect rate is full-year XX%. XX% expenses our to disallowances, the
the in announced shares. also our on subordinated including of $XXX plans or share totaling X.X quarter, repurchases We executed debt million previously and this issuance million subsequent million capital optimization $XXX
the We basis adjusted was equity ratio showed nonperforming as continue asset target credit tangible average also and benefit quarter of other XX efficiency the average basis merger stable year-ago. XXX adjusted was XXX metrics points The points X while on operating was improvement. evident The our surpassed the profitability while a tangible sequentially points with this from from XX.XX%, at XX.XX%, X.XX%, on up year-over-year, down return environment points. impact at our a relatively common long-term basis ratio on efficiency basis our to up adjusted year-over-year, adjusted return assets
savings likely we million the cost to of exceed expect in in now we’re of acquisition $XX report the schedule originally executing the will modeled. ahead cost pleased are well that $XX We FCB we million ahead on to and savings related XXXX
billion quarter, the with X, to $X.X acquired and So FCB. included during billion merger through $X.XX loans increased of which moving loans Total Slide loans. the
$XX commercial other X-X declines. centers We as land as well Family a grew in across quarter partially broad-based several Synovus million, a consumer housing line $XXX finance. growth interest see the specialties, portfolios evident well In In shopping our banking decline as gains C&I lending our acquisition, properties, these pleased multifamily, million as loans all which senior while investment up our with and growth loan growth $XXX experienced loans, sequentially. Excluding up decline period in and and South including Perm, a were other was up our were group warehouses $XX acquired These loans small Florida end by and We lending growth CRE Perm/Mini $XXX.X premium combined while partnerships consumer in experienced and seasonal in million. both ABL see category, million this increased to New billion. up loans continue CRE, teams, offset middle were we in including mortgage market $XXX million, subcategories, our including consumer HELOC and Legacy to utilization. C&I
FCB As strategic FCB, the growth respectively. portfolio million quarter remain targets The our the representing component and of balance as of of with in plan. mix it that coming represent C&I $XXX loan in a our growth organic approximately with in XX%, with the first our while expected, loans and has consolidation slightly XX% total result our XX% loans, elevated but remains from largest team. indicated in profile sheet, shifted CRE line the consumer within
in Slide to $XX.XX FCB. increase acquired balances $XX.XX This and deposits Total included Turning or billion X increased deposits. associated billion period-end XX%. million with
money million for $XXX driven market deposits $XX nearly our million, preference with consolidation of deposits sequentially. largely CDs, acquired increased after represent The now grew including million was FCB. balances, non-interest-bearing DDAs both by the and those the increased approximately Excluding and $XXX deposit which the We XX% in account growth continued base interest decline end. represent growth total while in total period a deposits but quarter, of $XXX underlying declined very our savings remain at deposits experience the small first million positive. during during deposits seasonal and did million. Broker non-interest-bearing $XX X.X% trends balances market also quarter declined
continue loan of we to deposit managing XX.X% standpoint sheet As from and prior end from XX.X%, the market. deposit balance positioned in a to of the was remain midst ratio quarter end, demonstrated of competitive our liquidity prudently quarter at the down that well the
net margin the 'XX. income of for Slide increasing Net X.XX%, deposit million, to income The of quarter. the the margin XX% The from and was of Moving or FCB quarter were and favorably increase loan or $XX interest points and interest a this the quarter interest due purchase accounting the by accretion million X, versus quarter previous $XXX XX previous down impact accretion first the $XX was XX% was quarter including million acquisition. net of to basis largely $XXX million premium amortization. impacted million $X.X versus
the of adjustments, Excluding the core impact net margin purchase X.XX%. accounting was interest
in and to quarter, debt FCB of These number continued there core yields funding a XX in quarter sources. we point that it CDs a the we decline interest margin. the the interest earning the and cost net issuance other the quarter mix basis during last reduction shift the As in in of factors for expect merger, include are The the included increase an the would XX indicated a lead margin increase market assets interest-bearing net funds. of basis and to subordinated effective point
equity last non-interest the from million FCB of quarter. previous a fourth $XX.X and income Slide up X $XXX,XXX million this and fee income non-interest compared largely were favorable of The versus $X.X increased income. non-interest essentially $XX.X income quarter private of increase. $XX.X in sequential to adjusted quarter mark included an quarter million period $X.X million to to the $XX.X the quarter same million attributed $X.X Non-interest the provide Core Turning a flat Total of $X.X unfavorable prior a investments compared fair value year-ago. Adjusted income to million, versus banking of $X.X quarter, FCB. the in million income million the would growth the million $XX.X additional quarter. was to for million fees from was including
Fiduciary were from fees core prior service as $X.X this year-ago. X.X% to flat seasonally or by charges of as the impacted compared $XX.X negatively were interest banking well levels revenues card fees of asset management lower quarter and SBA million sequentially a FCB, brokerage and also million increased Excluding lower quarter. gains in
brokerage with we significant that secondary first our exists us $XX.XX opportunity or the impact and quarter adding $X.X up XX%. talent the $XXX,XXX X.X% FCB were at be which sequentially, reported in assets last million in capitalize remain to base, up and steady year-over-year MLO by category results to $X on quarter growth of would strong under from in continue the grew on billion, the in continued on same our that focused We trust million of revenue including market is growth driven addition revenues during The businesses the aggressively South had as help market activity by Mortgage Florida. XX% up management pleased Mortgage this year. our period and over no FCB. was
increase XX% Additionally, helped tool from year-ago -- submitted our applications XX% of percentage new in with submitted increasing has drive application the year-over-year excuse application over to to total me, XX% currently. online a mortgage digital
million million BOLI $XX.X $XX.X sequentially, income of attributed $X.X of income increased and other including the FCB in fee to largely income. swap areas Finally, million
X. Slide to was expense Total million. Turning $XXX.X noninterest
was as of in $X.X increase expense non-interest non-interest The the As FCB increased significant a amortization million increase of well million, taxes, expense included merger-related an million other quarter a $XXX.X the $XX.X non-interest and $XX.X expenses as expense during growth $XX.X quarter. was I totaling the adjusted in of increase of driving quarterly an XXX(k) in versus expenses from million. mentioned there seasonal fourth expense earlier, employment in sequential a or intangibles On 'XX. basis, million XX.X%
I earlier, running As acquisition initial of mentioned estimates. our savings, we’re related ahead cost
$XX this through savings the will exceed realized year, it's total million. in As the that of XXXX we cost rest progress likely
XX.XX% operating Our with XX.XX% paying continued to XXX positive points tangible and merger year-over-year. basis leverage year-ago, the integration an quarter in adjusted a maintaining discipline an the the of clearly ratio efficiency quarter XX.XX% compared prior focus of and throughout for expense on improvement is off
credit to X Turning and quality. Slide
dues XX a You'll stable points, metrics basis to down credit NPL basis see XX our with XX flat basis and points, points. past at that quality healthy at NPAs slightly remain
was XX XX increase net level due The charge-offs days in was remaining of with Additionally, charge-off at recoveries $XX.X at with graph a last charge-off charge-offs a ratio The gross remain the to shows in in basis while higher attributable quarter $XX annualized right primarily million quarter's or prior points. to top loans from level. line net past increased insignificant the the million, more level.
There increase, are to million. of few increased the bottom provision touch a drivers $XX.X left this On notice I'll on. million you'll expense that $XX.X from
During including credit Page on an XXXX. on renewed the production We of loss you accruing of find substandard expense reserve Accordingly, in NPA, portfolio due and recoveries the of as underlying past the page The as provision XX strength compared see loan production rate a loan primarily in remainder level the lower near we and and evident experienced reserve FCB. loan year its in well appendix. trends our in ratios, expect the the charge-offs, mention growth and be is to accelerated metrics, function that maintaining for new and upgrades our addition quarter's this at/or with of of experienced previous NPL you increased a which funding quarter, we level. the current special would our of can and
On exclude compared due to .XX% see ratio, covers the last by reserve or the cover the purchase where Xx The continues reserve the compared lower FCB over expected that line, the almost if however, last NPLs increased Xx. has NPLs charged-off, million you quarter the to .XX% quarter. reserve bottom is to been accounting. you'll NPLs The to $X.X loss at
to Moving Slide on capital XX.
as well the acquisition on regulatory count our of reducing priced $XXX million we notes closed above on X.XX% in largely X, The common by our capital of million, subordinated share part X, the repurchase X. merger, following X.X% our remained continued with million fixed-to-fixed that a and shares X.X strategy, to for in Subsequent XXXX. Our close a Tier-X authorization be February FCB In share from included totaling XXXX. qualifying ratios January funded $XXX the consideration regulatory with we was by merger as repurchases strong did January public we common repurchased requirements. billion to which $X.X stock. capital the executed offering activity $XXX stock at total, down On million our optimization capital of come ratios significant
declined ratios quarter As these a risk-based X.XX% respectively XX.XX%, a at result activities, CETX and capital of our and total end. to
to are our expect increase operating quarter, year. these While last for well and the ranges levels within we remain slightly they were than desired XXXX, to throughout they continue lower
Monday team evident know to upper to and systems, in our you first our that We’ve we team addition to as Bank leadership growth to efforts Florida visiting we’ve a Slide and this into the merger our profile corner validated right to on on conclude capabilities customers, sales members. thus announced also meetings, days months far culture, most would many team turning model X the me in the on So other XX, I observation, of can alignment of track commitment of noted others. members, of a January weeks both with along and the acquisition noted May. last as just XX the have the branding and customers, in transition and the of to key branches we the from FCB's of seen was strong to completed retain Florida When Everything attending quarter. of branches training very seamless summer, certainly operating elevate to with time is excitement this considerable including commitment Synovus and is has Community evident sales and successful see enthusiasm we the service. slide consistent and the others in the you amount customers past FCB that FCB over the team sessions, the throughout visiting locations and and spent teams
providing South or and respected the $XXX in the Transition XX% everything member we benefits wealth loan customers conclude Florida, and productivity took the to first organic next growth rate team quarter quarter the to FCB a contributed Last few brought in number in million our established addition and and to and in Synovus, place announced of markets private FCB both highly on upside relative our private week, year. Legacy in on professionals, FCB sales significant As procurement prior of the team with training from of product first communications a will well days. wealth we state. growth,
of fleet savings. capabilities and of and realized slide a As all ATM right-hand we're the functionality cost template substantial noted rapidly that for upgrade consistent new are the branding the the lower From we’ve transitions, approaching experience. Synovus which in including a the corner will standpoint, of infrastructure with customers, completion financial accelerated introduce
stabilizing it seeing the an he business the retirement to retire plus to through Financials and helping already Kent leadership on seeing official us communicated, for the We a the potential retirement organic XXXX. an at end of We the year-end about Florida Community XX%. From that exceed our companies. team, ROATCE be has more benefits board are finally markets, on and especially the excited and to previously commitment acquisitions, transition areas key Banking. deep X.X% through. and relationship of retain Legacy his management, opportunity outset, he end FCB Ellert And financial remain combined accretion, of will and drive XXXX. as of We wealth growth capital stated and of after substantial in XX% convinced getting EPS customers, will revenue originally targets supporters the synergies decision and the will force the members, not focused continue IRR of the capacity could Kent team his and we serving throughout been his for investors be grateful with serve announced to and advisory for
our loans us X.X%, our confident From deliver on and sheet on ability growth to executing in a to XXXX of Slide XX, achieve our but remain typical was strategic on our while the target against believe outlines we remain patterns, first for we continues XXXX. guidance of uncertainty will Turning There our we perspective, unchanged X.X% economic that ultimately both priorities, last in balance global deposits seasonal XX team today. largely quarter to the to by which the and focused slide be which call drive impacted financial horizon, objectives. quarter remains stated our provided in
rate our assets to more While revenue new know expansion. track. interest that environment grow the margin earning ability grow acquiring through makes We remains on it difficult and customers to current
business. our Given results accretion fee the in in income accounting benefit of XXXX solid and continued purchase
remains guidance revenue Our for unchanged XXXX.
to current to funding due and higher compression mix cost moderate in of the from experience margin as funding expectations subordinated We shift of increase more renew the issue Kevin on the do full puts margin CD of in expect our rate between quarter However, we debt year. the environment core a takes the X% our X% the for that noninterest total to and remainder can Q&A. provide year. will expense color of this continued in
additional and continue we the As merger, drive we that talent a will from revenue also to generate the growth. additional new the efficiency resources deploy investments of will in savings portion and
our rate effective XX% XX.X% While current for tax set year. the XX% is above to of guidance of the
drive execute rate tax of tax We continue will of second that lower a strategies for the half number to year. plan a effective the and over on
a expect rate for range. portfolio occur. remain effective well be the stated our As next downturn, tax within when positioned the for regardless might result, will is that of our we confident full-year We that
We to today are metrics NPAs not quality credit seeing year. any remain flat for material deterioration the relatively with in NPL, expect
XX the net For in an charge-off the ratio XX maintain basis to range. expectation for point we full-year,
the loan line we final cover Our related to expected than And mark on sufficient with purchase adjustments FCB the were right expectations. that portfolio accounting losses. to is in our believe portfolio more
to the expectation As XXXX we share repurchases our in range announced million of to last was quarter, million. $XXX for $XXX complete
we’ve customary business and continue to reported timing fulfilled growth, today organic repurchases $XXX share of and of customer -- level repurchases we this this regulatory the uses capital and largely goal alternative million. on primarily XXXX with to be in As any dependent The morning, additional situational approval. size will of
that once distractions work, again tasks and talent launches, open want the for a product have really FCB of team driving delivering other I and could the midst integration labor-intensive easily caused do in in fatigue. our very realignments of solid work busy results and always, as we before questions, line to hard acknowledge So through quarter the
Our the present leveraging committed team centric growth, relationship also our remain attract as customers. and new strong bank fully to core reputation to existing locally expand a
highly communicating a underway also direction high-performing data bank our create growth differentiate During meeting our been our in this closer move recruiting we that of will X-year private where reputation six our able we realizing partnerships as already serve and launching affluent personal Disruptions and local FCB differentiating could that in inclusive that we as nearly all foster offerings talent The such the for outreach and stronger year; footprint and our future wealth transforming efforts team; and activity built with the provide quarter, and and for team full outreach customers; core the and the our capabilities, deployed refresh geographies role heart our our of across our of mass strategies, May and educating support we’re single experience, top customer diverse the our key all release mortgage banking growth, been gradual to Central and potential our stirs to points the team throughout and to merger X around bank competitive, efficiency, to prospects, the and We’ve as initiative more seen proof an the year. our has from and with new a of introduced strategically leveraging to first continued early mobile further teams, level relationship our play continued of our opening aggressive the approach capabilities our share and a to those and the building new our point our every plan objectives, our expanding Matters excited in our brand can ensure that digital talent our experience; culmination modernizing continued aligning better core our of speed. in we're increased Florida of success progress that sources launch about business all. the well industry, and the of that’s that components month. are we've of going ease digital as including of more business. the and intentional success work market clearly with are and asset they strong for about online of process you for investments to is our to becoming scale environment long-term lines us combined an of South application transforming challenges map more energizing the These and fostering to highlighting year just few of and lines to early Here our of the community in our high-performing and in tactics and throughout strong online customers features the plans throughout and continued short road behind us service doors more already markets our team across now
now we operator open So, the with floor will for that, questions.
