SNV - Earnings call transcript Q1 2021 | Synovus Financial Corp.

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Operator

Good morning and welcome to the Synovus First Quarter 2021 Earnings Call. [Operator instructions] Please note this event is being recorded. I would now like to turn the conference over to Kevin Brown, Senior Director of Investor Relations. Please go ahead.

Kevin Brown

Thank you and good morning.

will available the section within website we release and of call, synovus.com. are that the today’s be slides referencing press our During Investor Relations Officer, Chairman begin Chief Stelling, Executive Kessel the and call. will Blair, by followed Chief and Operating be will President Jamie Chief He and Financial Gregory, Officer; Kevin Officer.

at one that management yourself you team questions to to follow-up. the of one answer available executive end call. and limit Our your question is the We ask

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

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

see now, You And the to in appendix of measures these presentation. reconciliation Stelling. is our Kessel here the may

Kessel Stelling

you calls are to very take we Chief my Thank April consolidation is but call when this you, plus morning, We me in despite early challenges won't than day in were thanks to I'm want and and for before first and years and to take for lingering have joining financial weeks industry, many back as you for ending Officer. that move very with XX first my and moment XXth longer. ago was certainty and participated around, these a company, company I XXXX, call great low Kevin. My Operating great I last support. quarter of grateful whom still from earnings into positive as much our on into call I've started. tell also those XX earnings CEO. through years, call, a they note company the more as shareholders much of the And the everyone our one, our This call of of crisis. quarterly can the XXXX with XXth high for I’ve Good even last trust in CEO. some stages our recovering the I this the you followed thank the every to today's of as long XX from charters completing update, bank been away as their on

part forward every of to the in looks built you. with relationships calls these because quarter we team Our

While we also top don't the core And our always take the your of agree, remainder more battle executive assessments team, well. of to a our and shareholders. each thank no than I want Above really to like commitment good month, presentation truly members, of through pass this take This baton CEO I confidently company and communities and quartile believe what's times all in In and I they to find to believe your I'm new their answer. simply are last leading many is delivering always and tenets the time Kevin to industry. proud I've the to of ways win. all They're customers, usually of team an in Blair, comments. to On who regularly fair about of a other, drive, They and so ones our talent. of the dig I And beyond my want today. I thank privilege our ahead. I'll opportunities three we won't an incredible with worn, I'd tough identified sustainable whom depth listening appreciate our that's and capable are passion, focus for had delivery that Thursday, strengths. helm. has we've all, ready alongside tested in of team I whom deep best am a the to team and performance. work excited done where strongly to the still Kevin our as dedication the

is success, and being and The communities. strong first growth which positioned on includes with southeastern the capturing our customers our capitalizing footprint for in reputation

Forward. Second, excluding And in organic core customer which with top year PX invest our which this of for loans. priority delivering we to core loan by generated is efficiencies an continue exceptional through growth, X% remains third expectations deployment customer growth experience our providing aggressively guidance consistent for is capital X%, with Synovus to

levels. the reduce those results near diluted our Total Phase confident million deliver helping earnings billion, and expenses basis quarter charge-offs $XXX compared per $X.XX $X.XX Paycheck Through $X.X and remain of Due deposits areas. in of basis adjusted to points. billion NPA, low for X% demonstrated $XX April, of Core XX,XXX a Past processed the performance $XXX in provision and further ago. deposits under losses Adjusted applications ability our the last of or lows, NPL that portfolio. in approximately of $X points earnings we $X.XX, remain the strong from .XX%. all were ratios to Net Program, a the X we cost credit $XXX mid of have increased million at historical quarter year. funded million and by new these Our Commercial customers. the $XXX capital XX Protection grew year X end loans, share reversal million led and credit first transaction increased million, to to our total adjusted for revenue excluding for remain

By a the benefit provide more throughout the pleased job with with on X. And XXXX. I'll of in results our Synovus million loans of on the Jamie, we've We to end that detailed more rate initiatives. delivering $XX million over with strong to Board continue progress look by approximately to of outstanding for later the did the the the continued run year. I be an overview, expected Ken the And achieved team $XXX of call Slide quarter, now end financial detail the pre-tax our beginning Again, the update quarter. call. progress will for turn forward

Jamie Gregory

you, first $XXX in Loan With auto line quarter, $XXX highlighted our Kessel. balances excluding first million from balances our direct declined loans, $XXX of Thank by growth, ratio commercial loans end was March. and total million million PX the saw associated end balances while as Total verticals, loaded utilization PX loan C&I second at smaller $X customers. quarter. the million as Despite by million Total were in PX average led with higher specialty well $XX fundings million million remained and in approximately growth $XX back than increased XX%. of in stable commercial $XXX increased of the portfolio balances. period purchase phase we excluding loans, growth declines in the in commitment million, the $XXX

With million excess average add expect balances. draws. C&I the remain in recovery meaningful as $XXX these we near $XXX for $X.X utilization loans the as liquidity or more trillion of recent Returning funded of longer levels historically line stimulus before customers million approximately XX% Total $XXX CRE reductions normalized increased plan, continues. low a at within would their across consumers own stimulus making to use to post-COVID continuation revolving was the respectively. trends million. of deleverage. which estate are $XXX million consumer mortgage government declined and excluding of and a million, credit HELOC commercial to use witnessed lending and particularly markets consumer partnerships industry as loans balances This real Total apparent the The trend reduce declined portfolios, $XXX our prioritize

for customers. program We the our continue to on PX deliver

have billion We of PX phase processed second to $XXX the part loans and million as funded of program. date the of $X.X approximately

X In these $XXX to at through loans. the million partnership the Total $XXX $X.X billion. first continue the an auto on million process the PX loans loans held forgiveness in prime by Phase ended also process. appendix. available loans purchase We of quarter, have lending More loans. forgiveness of quarter loans work the increased are details investment Total complete for to the led related we

a manage to balance to liquidity strategy partnerships in and will sheet, capital the which use We the sections. discuss I'll continue as further lending

figures X.XX%. continue will partially Deposit cost total lower Those the a the the included drivers we quarter, deposits, CDs, public quarter, the of XX for The The deposit points the premium As in further this of the were PX, an deposit and time Phase reduce money a to basis to of or rate allowing deposits, and then the X able about and was which greater of excess in first shown to million This growth main billion, of NII which basis of of declines total decline led down Slide than activity bearing deployment continuation deposit funds the of of sensitivity. X supports were of and million, fourth continued the brokered In XX% and $XXX include costs declined represent with an in low included the come total Further growth by deposits. continued quarter net calls headwinds X deposit of of basis within of as due X, Slide as we amortization these X decrease which base. deposit market by PX maturities total in remixing non-maturity accretion. from increase end bearing associated The at cost had improves income refinance costs liquidity. on shows strategic $X.X change of the time rate $XX approximately deposits declines low our deposits reductions expected increase offset deposits. reductions lower of and higher runoff fee average million in higher favorable largely At .XX%. XX% $XXX price in will non-interest securities These $XXX another continued our mix portfolio. $XXX to from accounted in by deposits core reduction environment. the more cost non-interest .XX%. million. fell the deposits day to points we of count cost cost million well points a quarter, excluding manage rate pressure. interest includes deposits in further deposits in The

$XX quarter fees in In million by the increase X. $XX $X addition In At lending first for realized end, million Phase in of the the we million quarter, PX to net size book fees. securities we were increased and a for $XXX referenced X unrealized I the $XX partnerships, the million Phase billion. earlier,

second of of X the occur fee most accretion up pick expect half in X will the fee year. second the We Phase in quarter, and the Phase remaining will accretion

to Phase have the at assets continue accounted end Securities As a for to reminder, Phase we future foreseeable exclusive a excess liquidity. expectation Based further PX most a the our It's of loan growth first for the current of trough fee X X-year accretion. X-year should for portfolio on And we deploy reiterate total XX% our NII accelerated that term. expectations, that and growth in loans. X quarter conditions loans term expect approximately within market core quarter. our of the

by to the driven we a of year, deposit As increases through and loan the X.XX%, reductions. we of X NII interest growth, from see prepayment was further deployment progress margin cost points The previous in quarter. expect deceleration down net basis liquidity,

$X shows continuously year. million. We security and quarter Slide in of year-over-year. X% XX% partnership Core the position growth forecasts in $XXX $X losses, prior strong, the mortgage million capital million. $X $XX our of extended NSF revenue remained saw we revenue size wave X continued increase $X consider Net [ph] pricing low were for normalization interest non-interest from activity liquidity million adjusting monitor activity fees After in analysis derivative movements our as markets first $XXX offset the although improvement $X environment. banking and was management, we're Increased million of up in following million. under for prior non-interest million securities will to a account rate assets of and from of composition our which million fees as declines the lending million, and appropriate value of contributed adjusted customer some increased of quarter-over-quarter We portfolios. the from revenue initiative, up revenues $XX seeing rate a and

interest in going quarter first to increase reduce production is levels mortgage remained recent likely While production levels the elevated, forward. rates

employment Forward, declined the prior expenses non-interest voluntary last Kevin investing $XXX expense from and Professional remain Adjusted and the prior with on Moving Forward primarily We Total associated confident $X The was expenses initiatives. $X from NIE to performance were enabling million prudent non-interest $X Slide X. Synovus on progress million. down million quarter of million of lower adjusted remain prior our expense a increase first year. position the early share on of from will deliver retirement quarter partially full million greater Synovus to management, Act seasonal that the and include employment expenses a benefit the by quarter expense prior the portfolio. and Synovus promote committed initiatives, from update other program related including increases and employment success, in quarter $X an Forward CARES for that quarter. experience related us benefit shortly. taxes of offset growth. fees We customer us PX superior from in to in loan continue our the credit profitable quarter, areas were

quarter. reduced and lows. prior with XX loan see $XX million As remain I Slide charge-offs metrics you remaining further $X our estimates to versus on that show NPA, losses Dues stable NPL As X, Net the note million can credit historical near points. or declined basis key LIFO Past all allowance

of continued size that in change metrics the net of The improved portfolio. significant and the we recovery, from partially economic losses stable resulted million outlook the economic were for loan by not elevated portfolio particularly offset $XX the are of expecting increased Given the provision liquidity credit charge-offs and loan levels near-term. in a in Southeast, reversal

criticized positive from and financial levels the which process, experienced and reflects in recent $XXX timing As data, in pandemic. appendix trailing including statements located grading year-over-year shows of revenue reflects lower expected, is uses we full the inflow Approximately in related, quarterly The restaurants. service hotels saw activity. an loans hospitality increase XX% classified and momentum during that of the our the is the increase million which most cash

ratio aligns is a incorporates cash stimulus. uncertainty. as financial borrowers. the quarter reduction an outlook positive a which in excluding more in real with ago. reduced positive expansion year to translates quarterly over levels We with in the for outlook included for It in ending recently decrease significant inflows, PX into The as time first more statements end classified proxy the a see X.XX%, implementing benefits expect reflected and the of CCEL criticized There's and the improved ACL we're the is at serve revenues the loans. improvements This allowance quarterly decline more economic since detail and outlook the approved appendix. The economic moderate from of seeing

weighted from X.XX% The from points year, ratio as core balance $XXX a basis well ratio as a efforts billion. million As XXX end increase increased X increase points basis X.X% primarily XX, asset in $X.X for than above noted grew the past CETX. RWA to our earnings, Slide X% CETX sheet on range despite and the The strong earlier remain to operating held-for-sale. I management risk CETX increase of is top of over loans we more the referenced

including to complete growth. well-positioned key our strategic are profitable commitment objectives We our to

balance Our multi sheet top relationships. to priority is our deploy to solution core

XX%. that priorities our and When our capital consider return to to XX% objectives, sufficient payout it's cover like long-term of a targeting are primary believe growth. portion we to we important repurchases earnings is also current secondary a share We through ratio dividends, noncore of comfortable

active sheet range. the XX efforts over of liquidity handing to operating like it we've to Kevin, Before above our that to the over capital shown goes because hand as hand I'd Slide balance excess top in on management with taken well as deploy ability end our highlight

total historical quarters normalized give position was but of the of our a liquidity. portfolios, partnership One monetize balance with held-for-sale and We've operating actively and in accomplish the funds higher and and billion, for lending with view not year-ago also quarter billion a our managed partnership are liquidity. other able to X.Xx excess held is The at sheet Current active loans. about approximately NIM, $X.X investment billion relationship we've billion our $X our federal graph exposure in loans. pre-COVID. sense which in of in to impact approximately that bearing way approximately normalized $XXX the talked the for that past reserve to lending a for sky with of held we than the on cost where million $X.X the management this restructuring first opportunity our were investment deploying were green had few partnership there's levels, cash levels $X.X lending about interest portfolio, end loans With actions

profile, as and this We believe to navigate portfolio liquidity loan current conditions. and environment. market market the loans manage will the we current liquidity fit auto quarter, X-year we under life first purchased the continue return the auto risk we that a good capital was In average because

assets. With excess we lower rates this turn some and of liquidity and to high-end priority operating the deployment. quarter as deposit to third loan which year. about ratio, percentage liabilities. for of assets now our with by in at securities including reserve. you ability the above actively can much without capital which the which capital graph, on total organic currently provide The a Synovus efficient The it selective growth, This We you've Forward. also an is securities deposits other about and we increase a range, includes update I'll increased longer Kevin, our core past manage provides us purchases with to the X.X%. This accomplish first the liquidity term yield strategies see highlighted As and yields comments be historical of graph loan targeted results was can more opportunities highest last our on over who and sacrificing [indiscernible] will and [ph] in significant funding, the view over can higher stands federal XX%. loans, and our provide seen our

Kevin Blair

The we're for his us support, have sincerely I and skillful appreciate leadership well as Jamie. the helped entire Synovus position very of future. and Chairman he'll and like thanking worked unwavering the to Synovus very his provided of leadership and Board. has especially He's the all as contributions Kessel taught a that for in XXXX. And I'd team the and me transform Kessel remain team influential the entire you, Thank Kessel in by Executive CEO. closely mix the our begin joined since role I I company have together grateful in lot. and

and take legacy. to watched face. dreamed to of we honor the incredible As we've of steer part on us him strong one continue challenges we'd through ever listened It's that company foundation his an certainly helm is no build the as this to

have top top working the quartile and growth. the We the don't of not to of also we under It perform of intently XX timeline as during but quartile all and to Kessel stabilize, of the his In we transformation our combination ability with be our value with introduction, upon been invest over spanning As a sustainable resulting the further the achieve foundations the of discuss to only Kessel's strong which is we've have four CEO. rebuild, building highlights more and for begins transforming recent series success, which positioned appendix, position core as today the a stated included company of a accomplishments time tenure to XX certainly basis formula in accelerate. a longevity franchise well last believe transformation as company. phases for in years present, and a the and Slide compelling provides being a sustain for creates our a deliver to objectives. core

instrumental that However, a winning in better marketplace. Synovus for the been positioning growth have couple and I the scalable imperatives want of in to highlight

comprehensive connectivity while We this has and banking that and out model of impacting staple to a and strengthening Synovus. enhanced more acquisitions. through of During and without products sheet periods our been management Global well Bank we practices we robust through stress. expanded agility long risk to procedures have diversifying One And as Community customer the built the better and timeframe, and centralized withstand a in as solutions of our coverage addition the balance our lastly, talent moved Florida

while prior in competitively future. continuing to essential of have economic performance the within strengthen our bank and the Synovus is downturn been months, and our to we initiatives the overcome XX As weather well-positioned these the over the evaluate for helping previous efforts industry. challenges

competitors. with are enough aligned deliver to our fintechs We right and large functionality and largest of the capabilities partners the bank and

on focusing with We a and have to on local approach doubled down the which personalized also well banking, smaller remaining competes institutions. delivering

across base. asset to products we Lastly, continue coverage we expand have markets, and and solid our opportunities But have talent our and segments to solutions customer classes, industries.

we're also and We believe banking. comparisons belief is strongly metrics economic and relative home This demographic the in such we as data supported many of as prices, in rates, footprint employment the GDP, evaluate others. best by

pronounced performing likely into markets. far levels will better is footprint at and And flows become continue population averages. than will X-state believe business the Our with we this more and national trend our

into levels. position in fully increased are have XXXX. addition, support have our And XXXX our current underlying environment. target utilize now changes the growth we And unprecedented given as In our capital to levels economic in throughout significantly capital demonstrated the of the and excess stated a we to organic levels prudence are in capital our

building In fully make delivering superior addition and well-positioned, experience. attempts than really to by It with industry all as our complex and to actions strong more is of easier customer is. importance accomplish and this are about trust The our with understand do We to level being a partnering us the with of this putting business a making customers. it it we advisors. committed interests over first to through time them their

as improve. We promoter have evidenced loyalty, our we to by levels an a long know of opportunity and high the record customer but successful there's to with scores, track net continue

support key in objectives. service The in and expect a want the are guidance, model advice they meeting team addition rather of and aspects. leveraging from synergies sales becoming relationships redesigning line financial provide and building is proactive about subtraction, also blurred. it is high of a It to with to financial combination both and and order their processes, technology their Customers further of as manner high between highly partners not customer to but members tech our experienced point by differentiation. a We serving touch engaged with strengthen

relationships, well We insights be in timely is and as and as are only term to support to channels analytics me data Not proactive prioritize third in profitable that as well, brings but objective. creating sources the new our growth. advice. generating sticky summarized area will longer to we organic prioritizing customer leading it order is which to and core more investment growth as of it priorities interactions continue in focus our also our Jamie revenue, capital providing primary

Given and to we the strength the economic our of pipelines our to levels. calling see in starting activities, are activity footprint return and production pre-pandemic levels

expect to the continue in of of be to We strongest XXXX the second half terms growth.

to a in growth We generation also solutions payment capital had treasury management, businesses, our have including concerted the strategy markets. and accelerate fee income and wealth

versus talent. will fourth the the or a attracting with good And for produced $X hit quarter continuing X% and or first to continue the despite quarter to million is repricing increases onboarding fourth referenced management in customer of to lastly, grow as earlier. payment increases with the from XX% Synovus top efforts areas talent in continue production liquidity. charges to catalyst key revenues, a Jamie well be as overall record the model that show up The in million growth. serve results solutions combined as wealth efforts continues and quarter AUM levels, increase service momentum addition as these in $X Treasury

businesses continue double We opportunity to profitable have we growth. the the win right down and to where for present on

long-term specialty the expansion periods relatively opportunistically as of short and payback disruption wholesale areas well management. to us our Ongoing and wealth in units, in add continue allow well will industry as sources treasury members targeted payment team and producing talent where a the as approach growth. solutions as banking for in increased top have see we to We

Synovus shared Board we've Moving to outlines previously. which Slide XX. our This initiatives

confident the earlier. initiatives us will and these Kessel are help align with our objectives stated tenets We that achieve three outlined

initiatives of and we a forward, program the a we journey kicked our fund as run approximately expect late million $XX end to anticipated cost XXXX. We off with to in At the prioritized rate million, by As of in will benefit million we million run in of $XXX achieve in of in initiatives first efficiency order half a the $XX these achieved XXXX $XXX million pre-tax revenues. the rate $XX result benefit. end incremental and about approximately the pre-tax have pre-tax of benefit reductions reminder, quarter,

the generate and realizing X. in announced the Phase efficiency are an of in January Phase we in to additional additional that $XX process We X initiatives expect million

We the the that by make Phase of two the we with have have of program begin next to executed incremental quarters will X the quarter programs decisions to will the all over and initiated goal fourth lead the efficiency XXXX. to savings

continue benefits of revenues. we the mix will Synovus towards plan, the executing Forward As shift

are As in for progress very such, initiatives. we the revenue pricing pleased commercial analytics value with and we've made both our

are of tool call. the We our enhancements, currently in include smart commercial phase pilot analytics detailed that the our I on which previous earnings

quarter our of by rate in a year. by benefit and forward. and this begin be of Our tool pre-tax benefits third in the fully remain the end million production team is confident going lines now the The both will to you'll receiving interest We revenue and run net and ability non-interest to in closing actionable tool, leads of generate from $XX adopted year. see this Smart over the

also retail developing our and phases the be management are wealth of expect similar a We in initial leveraged program tool to by bankers by to in year-end. have place and a

receivables Enhanced increase and Service to our payment our proposition and solutions, including value we continue and value Results integrated a international treasury products in quartile have began continued our these are rolling into and deeper continue Delving with solutions profitability in merchant and and in talent paramount. attention the quarter-over-quarter XXXX, Solutions. our will payables increasing achieve date exceeded new in that even and are in expectations the continue as products technology maintain and export capabilities platform, new additional through fourth solutions, including expect increase wallet $X solution. we we one and and functionality in solution treasury to second our To expanding million Our Priority for investments card fees top and turning digital outpace of and our quarter expectations, pricing sales our quarter to understand to we financing, focus Synovus on our sustainable and payment out initiative XXXX. to Gateway growth,

short-term As we economic long-term the short-term interest impact have or we need headwinds opportunities. evaluate from to valuation rates growth decisions our or balance activity, not that emphasized making

requires prioritization record intently we a and it is aspirations track way on of as where rigorous our not such, supporting have Forward businesses simply As proven our winning. more the to on and and focusing right growth prosperity. predicated Synovus bank cutting more

it couple our regarding turn comments I strategies before announcement asked how December, a new lot final changing under back we've the Now be in make CEO to been over leadership. want about the to transition. Q&A, will I a Since

will time, continue changes like will there I plan. the some Synovus be While Kessel, over Forward execute to

the been have and Forward aligned Synovus our strategic and company's We of outlined other in initiatives. direction areas both emphasis with

communities are both both a have opportunities the as lastly, on clear as largest lead win the members, well our to our that, on of for both to our lot And long-term and ability to We and to Its Synovus what makes we both our of a smallest we sight Q&A. company. not short customers, objectives, I'll and turn forward while its call confidence improvement. versus competitors. Synovus in our With we team over are the strengths company our for operator serve. committed the team deliver Also, losing and great

Operator

ahead. America. first Please from is Poonawala Instructions] question Ebrahim from go Bank Our [Operator of

Ebrahim Poonawala

Good morning, guys.

Kessel Stelling

morning, Good Ebrahim.

Kevin Blair

morning, Eb. Good

Ebrahim Poonawala

one pulling foremost, in off of most the crisis. and first what remarkable been guess, I banks has patience turnaround post-financial on

Kevin, stimulus mentioned Jamie well of on question, about I in levels I And the consumer to both the trying talked and and levels. and loan and guess impact terms think side. just the about I'm pre-pandemic production And done. to of So growth like in you pipeline terms reconcile back commercial what savings from job

up over I amount we Just the whether puts banks takes terms I there's loan think mean, expecting -- weighted sort talk the on that is sense I I debate growth loan the few loan demand? second seeing swath Give us the or see a open. from a give of us you to in in in us, pickup of economy should growth, that? around given a Are pickup loan next Just picking footprint already half of months? and growth. but of [indiscernible] fair a not wide of guess a And will color start understand you better

Kevin Blair

look when in up about we about XX% and interesting you When XX% checking think marketplace year-over-year stay. that year-over-year. yesterday, up the this you the on the at the liquidity it's exists Ebrahim, per today, side, talking commercial it's and is in consumer as were puts you account balance the takes average

on exists to balance you it's the that loan sheets. growth, really are that's of sitting about customer's when liquidity the think So amount headwinds the lower that leading

know that quarter year. last the starting going more who plan We our becoming They're of year. half capital are the of bankers that were calls. Now time in They will with that expenditures a I fourth the to customers we're are increasing. second on prospect having we over up as our pipelines first the know mentioned, abate versus but seeing that us XX% quarter first bit, things are that foremost, active, they're confidence for and discussions the give

existing with data, of tool, in amount We have you also know lending we with known you in of the give X.X%. have with rolling smart that does into state the we opportunities of our all not at when And X-state is us a some national and past, out. tools about it is footprint opportunity may new look of every where that Through insights footprint, customers. below our below we're opportunities there's where that X.X%, think then tremendous unemployment average the X.X% the some our

the at in country. top population net look You in states the all the are X XX inflows,

that into talent our then sticks coming growing, demand will second liquidity sheet where half we of activity, coming from footprint you take second around. productivity and add you economic the the we're it from be biggest balance into -- constructive. is wildcard the the long there year that in But see the combine be the making, and that some infrastructure, that with the we the half year on again, going there's in how feel when and to of gains consideration like add could be that sits So increases

Jamie Gregory

this Jamie. Hey, Ebrahim, is

one X% the add reiterated in had we aware, loan auto as in our X% growth first loan me And We quarter. Let guidance purchase an thing. you're XXXX. to

purchases, the X% the same loan we in what the lending growth, X% sort remains like to of excluding third-party any portfolio quarter. guidance Our saw on first

We the feel excluding it's portfolio we're to purchases believe good the So this half our saw in that weighted sort pipelines. any about mentioned, of back year. -- you as Kevin of guidance this we And that like quarter. at

Ebrahim Poonawala

It's know. to good

to that, talked XX think would in message debt, I liquidity of historically a clarifying $X to bring pick those over to follow-up to down Slide via and the next purchases guess billion is I down the or on be, where you them deployment for used there the up now have quarters. you just investment balances, about steam securities that you thanks So terms as cash Jamie. loan million few $XXX that, which And bringing

us a to back could the give levels? color levels around thought liquidity Just more of little when normalized process get

Kevin Blair

intent. Ebrahim, that is our

liquidity to is to priority Our growth. and customer excess capital that deploy loan

programs environment including However, and stimulus this is unprecedented remain a government quantitative easing.

we And to and situation the through deposit level core elevated may that a liquidity XXXX. stay so expect growth similarly believe transaction we at continue

And so are that. for prepared we

increase We that the you you proceed to total we prudent saw it's the those what trends And gave that growth guidance going quarter, I as will to In we through saw or to XX% range XX%. quarter portfolio it XXXX. be that see using that strategies XX% would that third-party how portfolio the of you securities we first of of to end in to the the like -- we're securities but growing strategies. likely of we first capital, to top say assets. that it liquidity very may in In continuations be January, and deploy with assets, consider

Ebrahim Poonawala

for it. my Got Thanks taking questions.

Operator

from Piper Milsaps is ahead. Sandler. question Please next The from Brad go

Kessel Stelling

Good morning, Brad.

Brad Milsaps

Hey, good morning.

Kevin Blair

morning. Good

Brad Milsaps

a Kessel, tenure Hey, on as around CEO. congrats great

these calls, on missed be certainly You'll but Congratulations.

Kessel Stelling

Thanks, Brad.

Brad Milsaps

the you're time this Jamie maybe of the for a that high-end seem your a in of XXXX, revenue to to down given half year year. Jamie your of able you of categories in guys better just the more uncertainty range, but -- your the just to see curve, lot with it frame kind on back it guidance the revenue faster of around have way of could you the wanted the maybe things the at quarter with Obviously, In there, talked if would point. of start about little year. steepness yes, up more last loan you with growth a out seems -- follow-up performance start to guidance? fee it you [Indiscernible] bit possibly that several some going of could of it to thoughts there's of that And that's perform talked you about like this off to Is at then do bit that, wanted really PPP. kind kind a of also stuck why kind little maybe your X% seems X%. start to but

Jamie Gregory

thanks Brad, the for question.

normalization the the mortgage where a to strong, environment You're fee right Mortgages rate quarter especially environment. perform this activity to much that through strong believe XXXX. we to and first -- the environment continues to that in revenue it continue mortgage customers continues in team the low as first was there's testament I a -- so just strong was our be our mortgage in well delivering businesses. And in for us expect quarter, that's

and So and credit those the based few revenues other fiduciary, offset be quarters. revenue charges next and over growth capital revenue deposit we will service fee markets. and our expected But products, card, we mortgage declines levels to expect to decline trust broad businesses pre-pandemic such as by

are NII. expect to quarter see through proceed do low then see And been lower tailwind on the we the as regards full third-party year pre-payments the of portfolio, and loan we premium they quarter we've to in that's so rates first may loan fee revenue. future those see generally for yield reduced that -- your point expect and with expect a and increasing securities we to to we from we we lending, first led two rates. And The book. interest become we the One on in we're trends the with also point book And growth. increase rates expect income, be the on income. also And to we pressure or on growth your that's X% your even the is to mortgage XXXX to in and and will amortization abate the the seeing the question. due we Ebrahim's growth experiencing growth sheet portfolio in decisions and of and assets and treasury here, that but X% the also us, to on stabilize the the a It can supportive do strategic steepening just if reiterating balance expect which interest are to securities to that's positive curve to the that, making securities question, based discussed We point growth, origination things. in interest we're saw

Brad Milsaps

my helpful. were less $X expenses that's follow-up. then Okay, this And little million a year-over-year. Adjusted is down maybe than

might those see with the being spent areas about rate about sort that reversed talked of to the of the at kind million we other maybe you're other you with numbers some Forward? commissions need trying gap talking bridge the in of this think delta you there, savings in commissions is to you're Synovus think out, expenses about run you I do in or point mortgage $XX or

Jamie Gregory

right. exactly you're Yes,

normal revenues the remain first quarter. But also point associated As component commission will that. elevated that with the remain see expenses mortgage was elevated, the expense just quarter of That in to elevated. a seasonal personnel of also you I'll first impact

Brad Milsaps

Great. Thank you, guys.

Kevin Blair

Brad. Thanks,

Operator

is The from Please next go from Brad ahead. KBW. question Gailey

Brady Gailey

It's Brady. Thanks. guys. morning, Good

Jamie Gregory

Hey, Brady.

Brady Gailey

So third-party I wanted the partnerships. with just to lending start

I grow PPP what's But about quarter, non to of You're end the the loans. of the that? that's as think of about to X% appetite at, $X billion continue

Kevin Blair

at portfolio in a that facets. we look that's multi Brady,

on at the profile for risk a Specifically, the investment loan portfolio, it our presentation. typical than slide and that's when held look that's a segregated held-for-sale we portfolio different you why and earnings

differently. So we that view risk

of and for investment confident the the But held we manage component because purchase you at in to look of to feel commitment our risk grow that we it. lower portfolio, ability it's So portfolio are then to it where today. from when

for to assets where marketability we you investing the all well. took that If and risk the risk. that actions believe that managing credit and risk if we in environments, as those taking you can have consider by we the at XXXX assets is relative are We we that paid securities experience in that we're in portfolio that the portfolio we look we're manage purchasing, believe and liquidity

a look X.X is with well at more so prime confident about in it deploy average we a we And feel liquidity. in as specifically point year portfolio. fits and quarter. that I'll with auto the look Because purchase capital profile we it way and capital life. in view we how as leveraging little And first feel than auto at We a that that really a liquidity. the way confident to portfolio the And to

type view, well we're also and the with for, And so looking liquid. marketable that's very something fits but that our that's asset longer asset very an term class

Brady Gailey

helpful. well, All I tangible. Then but done the all done more bank right. now my That's X.Xx has stocks ask Synovus stock follow-up, recently, have at to wanted is

a have haven't But makes on maybe the that a in you a side, little So flip while. attractive. that the you had less buybacks share now currency

what on stock So versus have M&A? buybacks maybe the that bank think M&A could has a for you done what more is impact about guys. bank do how and you price realistic But little

Kevin Blair

share this mentioned would said look excess capital capital, number is way capital look purchases. In as back at one Jamie would use we've And third-party and at at the alternative of Kevin. repurchase, invest we look with is we M&A priorities, Brady capital, in organic to non-bank growth. would Look, with we

it we evaluate to earlier, our of in today we we But So about believe all I We that Synovus. just best those having about as growth. investment for return reiterate And opportunities outsize we right an footprint. our our as basis. Jamie with provides because we M&A, think think love think investment mentioned is on talked would you that us win.

quiver arrow be been able capable another We and attracting in our very promote also to feel that to -- we've new adding solutions our products in and growth. to talent

doing in efficiency are touched roughly feel on important that it's the that last our is internally. people also Forward. that's XXX of FTE M&A think Jamie note been just We we're through And that initiatives. that a But like and of reasons or the doing X% generate I Synovus to the we've efficiency lot workforce. reduced doing quarters we've to two

efficiencies generating of And so like size we internally, our the we're company. and

there's technology relevant go that the we're conversations scale We relevant more front. a having on to to feel be that think into today. and lot of I invest

We as the feel have what mismatch like attrition have lost have customer function integrate solutions right then fintech at team the a as be partners right potentially that to can and we compete with there's we look cultures And you that the And you and member to are anyone. well there. attrition. could then a revenues of

we what So we're believe still Synovus. forward. in that when you take but best doing is -- all consideration, of feel the still we investment that And that's into going

very Now would of additive small. would would our relatively be any additive from that and solutions capability be a or And existing would of customer technology an our do those M&A functionality to said portfolio perspective, if it or we've be base. to be anything, clearly we to were

Brady Gailey

job great. and on Okay, the luck done, what Kessel, done last the it's over and with you've transition company Congrats And with well the this a amazing transition. decade. good

Kessel Stelling

Hey, lot a Brady. thanks

Operator

ahead. Please Fargo. The comes Wells from go Jared question next from Shaw

Timur Braziler

guess, in much 'XX actually the to a is I That for reduction the we if filling just covered for X% X%. good X% call, that pretty into as Maybe that's the drilling last expense first quarter, guidance in to rate Good morning. Braziler still for ahead, the look drop Timur to And maybe be going This is should line? was quarter a quarter. X% the that I else fourth the to year? In think what Jared. again. expecting was bottom first picture reduction here help of announced if quantify we

Jamie Gregory

X% discussing Yes, that commissions. as we this and of the still fee to reiterate earlier, and down question. of guidance guidance we to our Great impact X% Jamie. of of confident feel some in X%. is -- were do X% decline our But revenues businesses may And we higher

the that of $XXX Synovus as outset, to the in XXXX, And initiatives. first announced run Forward two-thirds have we've in approximately forward million be $XX have we we initiatives. million in expense of As from obviously, mentioned, expect X/XX, as we we look we the today rate benefit

through have half XXXX to on of the the go see year, ways still that'll come initiatives, in that we Forward later expense the through Synovus the So year. you'll side in second in and

so quarter, going [ph], streams see through half we second And than half. well the tailwind those on third-party closing have a of personnel be the in our lower have announced We been other the it. to believe today We second we'll continue in we to piece And that'll year. as some we're second that first half. of that's real estate to branches then we as the to of be work half that progress second that four flow that expenses corporate a be reiterate expect initiatives. spin And benefits like would in

Timur Braziler

couple quarter, follow-up, that third-party Okay, of utilizing through the the your as about to for down excess looking with increased yield like you the or and potentially duration rates And how on curve steeper higher liquidity, purchases, securities the a during then just talk securities just whether thank a you. take securities balance it of at willingness road? the purchases some the balance years. made positioning looks book duration or sheet Maybe in it's and a

Jamie Gregory

Yes, that's a good question.

that was the portfolio. of Convexity first interest increase the And duration to due just did rates, You're largely profile the in the extend quarter. right, that in

though increase to that these would to say long assets. mortgage terminal at see were you you on of get some end, I to that point, on expect a continue would the If see some further duration to extension, rates interest even we

putting We have remained diligent with the books. the on assets we're

mortgages, structured to against premium. buying been mortgages at XX-year protect have We somewhat split well mortgages a and and XX-year fairly And extension. between it's XX-year

XX% go on year. assets through haven't to our portfolio asset XX% And and to we due extension rates on the The of really end significant to interest But to so first those year, $X grow of XXX a going investments amount the of alone. the investments we billion. was profile. of as quarter is have around that depending the yield we a XXX changed did you're approach total will we duration top look right, The guidance approximately of our investment in this

Timur Braziler

Okay, Again, and congratulations for echo you great. you for my Kessel, thank the questions.

Kessel Stelling

much. so Thanks

Operator

The ahead. from Please Raymond Michael next James. is Rose question go from

Michael Rose

point as good morning. bit. stated. Thanks as picture credit. Kessel, continues CEO, you've standpoint, the My I job down then about one did drove that getting And for improve, guess I the everyone to I up kind a one, levels again credit from around some criticized little were of Hey, notice think talked my at else what that. classified great a has congrats the CECL the questions. post taking provision question a reserve loss is Obviously, just and to on day loan road. day back

we next the levels for forward low outlook least where at as quarters. we of very improve see Thanks. provision of As the could couple move

Kevin Blair

credit the quarter be want think this at look of take is this Kevin. at answer I'll it's body I But And because lengthy a Hey, this metrics of Michael, a when bit that. be look may just to I to the you important work. comprehensive. entire

is largely a our As statements. Jamie to you mentioned, environment. NPLs, we're an it's process and NPAs, think asked, provision is of classified, that important I relatively improving with charge-offs at grading criticized note historical our and stable specifically as financial But function looking showing

on So Most revenue increase headwinds hospitality statements we that in of the remind despite of related year the back movement And that COVID said we the and deferment the restaurants. would XXXX, mortgages It's of incorporated standard I'll mitigate being more financial back COVID impacted those saw saw with risks we've strong of those revenue of you this LTVs process. into the you result related as most grading GSE the respective been we headwinds the saw our quarter And to industries, sponsorships a was felt doing in guidance. industries, to much related was we this for XXXX. that our there. remained some challenges under consumer as that standard and

think are criticized And to rearview and absolute with even are you levels classified would that ratios it's a our increases of tell I peers. criticized below the I and really mirror are that perspective classified note for the important credit. on So

credit Now, the and going that truly what assess expectations and think environment the I forward. are reflect

real I you forward and have measurement. more the to think time looking look of data at

Michael, returned cash at cash you'll did I January we provide appendix, And our our in from the data terms of in think levels that in So aggregate, and that, to see when updated look have businesses inflow February. pre-pandemic you inflow.

PX, through We second another we billion also round our application in of had know volumes. that one

through at you like many know some pre-pandemic ADRs industry industries see hotel where there of at over restaurants, that restaurants markets at service you pick front, then COVID are you're recent the and you'll those that or returning seen data these destinations. the hospitality, when above in things stimulus. had. go we supported significantly are back were we into drivable of limited XX% to in they the same the [indiscernible] travel the the the see continue with normalized starting And expect starting impacted out to Florida of months look they economic and -- being look We've performing So people on summer that then And and all into and occupancy Orlando levels. to with you underlying levels up of having to and to QSRs full the as XX% in occupancy. in And of are exception footprint the same

see would based I and coming to also the provision with of mentioned to life CECL you the this near-term. And we are low as in to you loan the call, our as expect while on then -- level quarters, So would quarter. continue a very, tell forward Jamie significant our an upon going there. would expect reversal remain forecast, to lastly, very in we upgrades this estimates improvement economic this at the go to And charge-offs fairly And and continue. the have outlook, of look strong decline

the So provision. question. you credit Jamie, let addresses hopefully I'll the that cover

Jamie Gregory

Kevin. Thanks,

to estimates our decrease the also fairly cure outlooks uncertainty in level, believe mentioned, would expectation, made environment. loan to quantitative these our -- the due stimulus our of fact allowance significantly. are If still outlook. in amount outlook inputs point CECL rather We high to stimulus We there's to a model modeling. declined that serve if ratio allowance in significant would we adverse will portion At then that's delay our Kevin large a As would our the adjustments that the charge-offs we is to weighting a But the indicative of for say loss our scenarios of we've to cure, quarter-on-quarter, life calculation. the our the changes them. adjustments expectation than that change have

So this we allowance how impact. key a would plays calculation. one along. as as will see to get I And that But is that we point our assumption out further in

Michael Rose

appreciate It's very I comprehensive answers. it.

quick one Just follow-up.

last your now down Thanks. of for So like this gauge to expect seems talked you've you'd to pipeline, of be the better than that quarter, revenues be made down strength to any on XX%. it's XX% It going about kind year. of mortgage and just hirings the you sort being that based that your what markets,

Jamie Gregory

XX% that that’s range. to XX%. than a we would the were adjust up expecting is definitely would in But I acknowledge hopefully see Jamie. high-end range range we what at this that of that it expect to Michael, end to down I Yes. would broad I higher January. and

Michael Rose

helpful. Very Thanks taking all for my questions.

Jamie Gregory

Michael. Thanks,

Kevin Blair

Thanks, Michael.

Operator

Pancari ahead. is next question The from John ISI. go from Evercore Please

John Pancari

morning. Good

Kessel Stelling

John. morning, Good

Kevin Blair

morning, John. Good

John Pancari

want just well retirement best to say most deserved. I of and make Kessel, luck. the of certainly hope you

Kessel Stelling

Thanks.

John Pancari

Thanks. I -- just impact quarter is on margin excluding here, the indicated PPP? of and NII What as from from curve know the Just a you to shape expect trough, you So behind of that here. margin start progression outlook. about the see can just you the the assumption that? upside think talk about maybe want the how of had given what the you first you

Jamie Gregory

-- income impact, basis back of the straight would you impact the Protection expect on margin on to Program, including Program we of points, when John, calculate you is the in but is of how those improvement rate somewhere Paycheck would the would we the through PPP. along than also XX more less the X% impact Yes, that the actually first -- fee see quarter Paycheck to impact depending year, lines loans, was non-dilutive. the head It's the XX which as out say Protection we which

like year the increase than rates just we are of benefit And to now yields. and expect expect so the rates, go interest margin we on we due long-term the to -- and improved NII, we would through rates interest interest as expect higher where we going

And not that so would we caveat it's much it were will uncertain how But liquidity the a a there on that's I balance big tailwind. be give think -- sheet.

is impact so significant. And the cash

You're X basis that per impact well $X aware approximately the billion. is points

to margin. the be dilutive very the of could And we is NII But And impactful go that that so uncertain. year. not through this the rest as

John Pancari

Got it.

more is it Jamie. Thanks, in terms And of was helpful. growth, then what interested. of the I'm That's timing Okay. kind about loan

and year? of next if you are terms get year, Thanks. we How the about were you levels timing things of do idea expect back the production that how return XX% guess I for XX% think goes the an this it in the at, timing, given the line looking how half first it want how to level Just of progression? you internally of terms through the half pre-pandemic point. to the that is Are trajecting? of thinking of not, about of that reaching In normalized the same in your utilization off

Kevin Blair

assumptions as we're based first question. XXXX. the that. point, only upon our go And and the of trended and towards is the XX% now first quarter shows into pointing in Yes, XX% that just it's year To I said production a John, uncertainties that down of data are a quarter up and there's half versus of pipelines about earlier, the second lot your great that's

loan become as see to as active, improve, that pick more we'll up. continuing pipelines we're optimistic growth start improvement. we're bankers And see So to

of mentioned, this Now, a book. quarter, down our consumer being for core was because as Jamie big reason the growth

important consumer that both modest to I $XXX in see So portfolio million we a mortgage CRE. growth saw in that but its reduction and more to churn we although on led think in it's about HELOC, the did C&I, note

single-digit and the to in we CRE we And expected as we going the C&I of said, beginning continue. year, So was and challenge. to be consumer growth at that a mid trend expect

mentioned also in earlier with offset optimistic Jamie Now, are some mortgage we the the remain to purchase on side. how the but commercial home of we runoff in able equity book,

John Pancari

right. Kevin. All Thanks so it. Got much,

Operator

ahead. Bishop question The is go next Global Securities. Please from from David Seaport

David Bishop

Yes, Kessel gentlemen. a career I thank like at to Good would there my you. morning, Synovus. congratulations reiterate on to stellar And

Kessel Stelling

Thank you. Thanks, David.

David Bishop

on you near maybe of A historic here. more deposit the guys at the -- drilling [indiscernible] the question on quick look lows there. down sort are maybe and a Obviously, taking sides margin

them and where you think over the bottom the here you if -- near-term? for can you deposit take even lower see where here curious, maybe Just costs

Jamie Gregory

is We reasons. we multiple we believe costs the Yes, this to through David, XXXX Jamie. have further for question. go do reduce for deposit Thanks opportunities as

is time First deposits.

to have cost We time deposits. approximately higher in customers also off to working a with our past run the non-maturity the And just deposits. will opportunities non-maturity year, further few that we to those continue. -- success continue on we second more we quarters, billion X% at that reduce have We've we as we expect $X.X had maturing go over and believe little quarter the deposits here the than a believe rate. And we likely bit through

remains targeting we a rely teens. to current This cost the all feel and if of those. environment the the deposit to on confident to further these So costs, mid liquidity future in total we're efforts rate reduce the in but expectations, team's will deposit similar ability achieve

David Bishop

the Got it. That’s yield Then like stabilizing. conversely maybe it sort side, low those color. looks good on of are

the riskier, what there, present? and And loan Just price curious risk across Thanks. terms in curious seeing up across footprint market? to loan washed being for able with country somewhat? what just the away across Are yields the the various you general in sort better Are just seeing you're you premiums yields and just of across of there. just products economy seeing opening your markets you're

Kevin Blair

question. great a it's David, Yes,

goes our with price. but are you're is haven't at their in spectrum, about we X.XX only ex that's back Jamie's obviously, liquidity cash that structures that productions entire seen easier side. look when that X.XX, do carrying. to entire people coming changing yield commercial competing excess banks across a the seen most it people think range you to profile, risk on X.XX banking, the or point we in little the in have but the book on changing and And not if our carrying I think portfolio the balances below And that I fees, exists

it's competitive -- it's it's never been trying It's which It's now win just pressure the that said not but as some business, a as call quality credit means to the it's but becoming So there. chasing stay on price, everyone's trying appropriately high my there. the price look, for and career I've to competitive it's middle where margin type ever in but loans of on down have it. to fairway, the not risk on that we on price

David Bishop

Got it. Thank the you color. for

Operator

from RBC Please is The Markets. next go Steven Duong ahead. question from Capital

Steven Duong

good guys. Hi, morning,

Kessel Stelling

Good morning, Steve.

Kevin Blair

Good morning, Steve.

Steven Duong

that I down account? drivers to had what bring the So were just this you the AOCI speak good just Can quarter. a AOCI just first, drop noticed the

Jamie Gregory

Yes, do Steve, interest has unrealized the the gain on rates that increasing. really with portfolio to securities and

Steven Duong

Okay.

So Synovus net the coming revenue side with towards from more of was just income. that some Forward mentioned the okay. start will you simply that Kevin, that shifting interest And, --

growth that essentially from increased forward? coming it's that So loan is looking meaning

Kevin Blair

we all the $XX $X initiatives, $X at treasury really revenue we above, we million that million our deposit quarter, the in and $X repricing, came look in had our about and million some fee the from a had repricing that another When we It's ancillary of Steve. million talked from accomplished of our about income.

where just it our an to new program, providing are who analytics if future look through solutions. proactively you frontline expansion insights to analytics our is revenue bankers, we go to then and out the down able initiatives, As break sell there'll be

those of some related going are solutions going fee margin. up payment lending, money impact on that'll and show savings be the be an be more accounts, going obviously of market to Others line. income are and to so on Some treasury to and solutions, are which have to the

as first of on mix where specific and of we it those is the those coming because coming tool, of phases round have are where smart haven't majority have given we are the is pilot seen we recognition the of So revenue But from what better coming part on will execute the leads fee the a in, a income the from. side. this in leads

treasury the on side. more it seeing we're So

forward Now play to products teams, we as platform. in that it'll be of have on we lending bringing XXXX, revenue specialty the some go the new adding and solutions lending and into new initiatives be it'll

be So from there will additional NII that. that comes

those initiatives we as revenue P&L. better geography will execute a on of delineation hitting it's provide of the the So where

Steven Duong

Got the on the it. that. color next And echoing wishes stage. best I everybody's appreciate sentiment, Kessel in really just

Kessel Stelling

very you Thank much.

Operator

go The next Christopher from is Janney Montgomery Please question from ahead. Scott. Marinac

Christopher Marinac

the gains advice. reflected price I ability that curious think increases if I just morning. this the business. to on having about thus net there call early made wanted far, is it's know earlier Forward the getting And ask Kevin some Synovus in that, revenue about price the new is or over? you're of for any comments about I was to Good Thanks. We

Kevin Blair

question. it's a great Chris,

think I both. it's

just $X run million pricing solutions our see that of we for we rate area. quarterly what gotten value impact So when the payment call comes and from today, mentioned we've out we treasury

to be pricing have you maintain that it's important increased market think reference to increasing we and to levels, to it's not levels, I provide think So able have are to only those there. But market their value. important I pricing

our for consultation of can about the do it's increasing us, providing and to for and cash to and as so to we it we're save advice And amount services, customers management time commercial them money. what relates them

will over As we branches the all a based down opportunities customers. with commercial with they're using about be planning, client by of some are management financial assets that opportunities a our and we standpoint adviser. we're it in I under new our It's to It's consumer where think have the side, able sitting what the a doing being it's unearth of branches how to a revenue advice things be on to that plans the client lot from running called getting our of products, do relates we're financial And like bringing execute. understanding on today.

those then it having go products. So results and in out to sell

finds something me, has that where the to you just customer have it benefit timely to can to it's advice get the for, you So And paid a in in be something deliver manner. solution. it

Christopher Marinac

want to And quick, Kevin. helpful, that. franchise. new just That's real it. it's the FCB of I confirm business out but are Florida know Got evolving, you getting

Kevin Blair

growth that Yes, of out like acquisition that that we're reasons one is the of mean, was getting the growing. I marketplace Florida. that’s we look, Florida

quarter, came high X,XXX checking going I was net new. at earlier from But watermarks of net to this general, X,XXX accounts our quarter, in quarter, growth are account accounts. footprint. this just look that that's this mention consumer new commercial accounts that over net we Now, And we had you when had all X-state those and numbers both for new new

seeing franchise the Florida growth across and the think we're Central account and growth. to have Florida So I been South contributors big

Christopher Marinac

the next again information Thanks Great. this your best all wishes and for Kessel, in chapter. morning

Kessel Stelling

Chris. Thanks,

Operator

J.P. is go Please from Steven question ahead. next The from Alexopolous Morgan.

Anthony Elian

fee outlook. to decline morning. a to more sustainable expect half you start products. follow-up deliver of X% maintain identified income when This on company to growth? Steve. on revenue three this for X% material the but 'XX of adjusted in seeing the help second on XX, Kevin, strength guidance A areas you of total said a should you're Elian we this quartile of in 'XX? year. event or pickup more But can more see I Anthony know starting Is the some to revenue Slide revenue is good that the top performance, you Hi,

Kevin Blair

takes on great question when enter note rates reduction levers by in line think a because underlying I on thing that the that it's the to confident we you're think throughout revenue, hindered the some Anthony, as we been putting I fact a from we've growth. bit so of asset top don't line. point it's is at feel our one headwinds that sensitivity, the years XXXX move away we as of growth top to and important your still very some evaluating

pick where the earlier, mentioned XX% the out starting in fiduciary year-over-year to XX% opportunities loan or We're ability we're talked We up in in we're our management, CRE income. to I growth asset We As in starting second C&I quarter play growth without of in see up the with expecting to first card year. X% the fees, growth had up and half fee about in is brokerage. utilization. and generate to

are to lending specialization bank. in wholesale about also continuing and and We've talked fee previously our specialty contribute. the So businesses within investing income

are XX% finance If $XXX you loan our and year-over-year, up at that going believe pockets Public we've up care area. where of growth are kind we're start interest those and there overhang housing of that grown reduction of the health out. growth the we senior be in falls all XX%. rates XX%, up look seen specialty once is to specialty million because you core there to finance I give in

So be the latter into half story XXXX more to think going compelling. we XXXX, is of

Anthony Elian

Okay. stimulus is And then quarter, my temporary versus the you follow-up, $X to deposit things sticky like how payments? much transaction core billion would due of saw growth you of this say

Kevin Blair

Well, at said $XXX you we about was amount million. funding of we look I PX and had on think can the that that

still that as out, So of say deposits. the you half let's would than just suggest on came sticky subtract it balances that more

we years PX quarter. it believe high deposits, when XX that for say sticky this Now, the next quality there we growth sticky outside Jamie fund to earlier, was for next of were is but the X it able is or mentioned balances we as the sticky do years,

Anthony Elian

Kessel, congratulations and going everything you. Thank of luck best on great. Okay, And forward. everyone, echoing

Kessel Stelling

you. Thank

Operator

from Preston Brody from ahead. Stephens Please is question next The Inc. go

Brody Preston

the amount sort time to Good morning, fence brief Jamie, that was expect would and where in expense. maybe us salaries $X quarter? personnel of hoping you around all I much for was the I'll go the everyone. and help morning. try to be here. you seasonal just in second this How ring could Thanks

Jamie Gregory

approximately we personnel Yes, Brody, quarter, just in annual increases the and that million seasonal, had expense. and expense $X to first $X million was

we that's that so what as go away through will And year. go this

Brody Preston

kind you four a the similar about XXXk that that branch. go per was from branches the think I the of last previous And closures benefit Is Okay. outlined, benefit around?

Jamie Gregory

assume I branch. per XXXk

Brody Preston

Okay.

loan quite senior great. on And then a housing the up I portfolio. this noticed bit the quarter. ticked Okay, one that just

much then just that this And was percent non-PPP how the broadly related? how ask, much what to could wanted or portfolio, entire floating at you and portfolio Just maybe for related loan rate the point? sense a is us PPP more on Kevin, of Jamie give just was of

Kevin Blair

new the senior take We I'll senior was the very first well. None all in actually housing, do organic bank relationships to senior Yes, the It quarter of They one was growth. housing brought to Brody. PX. in in growth to this housing. related seven continue

of that none deferment. loans in have are those We

We have none that are past due.

held extremely that opportunities And well. there's expansion. up So for now is portfolio

know, some team the country. that quite As follow has for time, been this around they doing you operators

We've healthcare there. opportunity general, just mentioned the of opportunities area growth going construction growth be in have there's in general, taken look but it Bob And to quarter past. the book, senior has also in in to so us good you housing. growth And as seen the for continues of industry not a the continued be PX. When that we grow new this is to none at related to

bit in insurance as professional financial We in also of and and growth a saw quarter growth services, manufacturing. this well, little

to but of senior base housing good, several areas. which So just a is industries, broad those one starting we're see across

answer Jamie, Now, the let rate. I'll you variable

Jamie Gregory

Yes, variable rate. XX% we're

Brody Preston

Okay. that floating? what percent And I would of you consider guess

Jamie Gregory

that of based are around and All prime are loans that based that of and is XX% have you about LIBOR. floating rate X% of off of

Brody Preston

questions. my you guys. Okay, appreciate taking great. Thank for I it,

Jamie Gregory

Brody. Thanks,

Operator

from Truist from Demba is Jennifer next question go ahead. The Securities. Please

Jennifer Demba

morning. Thank Good you.

Kessel Stelling

Good morning, Jennifer.

Kevin Blair

Good morning, Jennifer.

Jennifer Demba

Kessel, tenure. congratulations on to with you. going an miss working amazing We're

Kessel Stelling

Thanks, Jennifer.

Jennifer Demba

Kevin, gains X more second for you'd seem teams years. for or be color that? likely X ripe specialty the market you Two some look is, questions, really quick. the at you question you Synovus if us Thanks. the more across Can sub now? markets which footprint, on share you over hiring ones particularly next some right mentioned And give my

Kevin Blair

thanks, Look, them One fit of within really logistics, it specific footprint, industries two would transportation focusing come Jennifer. to provides bring covering not proven a we're in with there. and We but specialty that them growth. covering generals our it out as and think there you I like industry on type always capability it and with value out specialties build things throw about Yes, specialists, generates be customers QSRs, specialty, you to looking things when our forms. that our out teams, today where

we're And would So products. at looking on be the industry. then second

we products today, think you of asset offer that As we have full the about don't set classes. a

into some forms into finance, lending. new So we expand to may or or areas based accelerate equipment specialty look leasing our lending asset of of

the with like would opportunity markets start have an the look you as market. at the that South are you strong you Atlanta, then Florida grow. And growth, also Central continue in look. to is But market I areas Florida, and we some market think at those it two terms I growing strong. density, sort with We I So a markets market have in of the look, know to provides the we of when already Greenville, that underlying bracket we that would look to there's earlier, mentioned would were that not a radar secondary And feel in Florida, amount and to When you disruption share, we that's of opportunity. where that we out bulge happened large of of like markets probably growth firms. leave and where about Georgia, places wouldn't continue footprint. often Augusta, you need of And to the tremendous opportunity we see in some Charleston, And talk have I make on the the some number we're it's our that sure exercise population then right win Florida, picking to share. up we businesses market of win these

Jennifer Demba

Thank you.

Operator

next is ahead. from The question D.A. Kevin Please from Davidson. Fitzsimmons go

Kevin Fitzsimmons

good everyone. Hey, morning,

Kessel Stelling

Kevin. morning, Good

Kevin Fitzsimmons

material inputs I you down ratio know loan First, you to but come out for looking ask go saw recognize here. gradually tough expectations provision, and no more you have that's better I from in assuming this ratio but we that see, assuming what that positive provision where a led change reserve growth, the different Thanks. here expectations put about the the would what model, than we in quarter? real I the without from change and there negative quick, as that can to is expect the

Jamie Gregory

into similar cure near-term. low outlook outlook. way in said right I low we we Kevin, uncertainty our is it the where come its credit at earlier, charge-offs. goes is remain with the of will our But mentioned resolution and given point, And charge-offs charge-offs, answer like it remain and in stimulus did from important now question for we'll or did that's And I what where that there. some sight around Jamie. believe our that's stimulus a of delay the the -- question to that we you would of guidance allowance adequate, costs scenarios us that creditors, and as to the see believe function uncertainty the to January, is What a low to state would I I where what we more allowance. say past the there's see we of feel line our because We And charge-offs that, like do know in regards incremental efforts time, of our have then to we're the of really borrowers. all of get need remain our all

now, And allowance our on where we what good for. to as ratio feel loan for points adjusted so about quarter you But XX we're basis are that's the declined PX. we see looking right

If environment, assuming of but timing we loan the no approach day you do that’s look for more book level. at at reassess material through a one very of we that allowance XXXX. changes us, a mix we remain with we good belief what today. for that. will to We something a will was in we're level. normalized loan that as our see guidance We on uncertain the charge-offs constantly X.XX%, in of that go And low that's And feel stable the that

Kevin Fitzsimmons

least, your CEO. say to know get It's and to and congrats to Synovus for be to to to you. years certainly Thank honor been Kessel. several for And, to great. but want last witness tenure That's not a just a as and you, I privilege me cover

in I viewed I feel of think of improvise, to good generalization here. I kind Synovus. overcome I really, related and adapt titled how really And several the ago, journey it, notes that Kessel that's a

I And or over you're Kevin can throw a in to back what might improved talk proud most and aspects you've this quarterly take beyond the of at this earnings, so as minute you Kessel, about you're handing Thanks. point. here you to model maybe if operating just

Kessel Stelling

gosh that that people I remember. lost we tarp to XX great in of it the Well, the much fee charters standing of never think all repayment And One, a frankly, the the the I I'm those close. customers me don't proud glue to is for facilitating Kevin, of that $XX a way consolidated our have I the where the together market. of recapture could Cabela's regulatory industry. through might FCB, team were and when held a of more of again the throughout that's Thanks for that, customers never there a is proud tough loaded then, tenacity back transaction I'm crisis. of our which proud team. united make moment. transaction, the Expected, for the the wavered and But when you you acquisitions I was, was our Kevin, know some tenacity days, called but We again, that DTA, this when that nature of team, a think then left question. kind efficient, And comments, of Board, gosh, us. that which the thought I as change, Global quite never had in to think of creativity knowledge tough sticky tenure, received million our look that my

our customers I've you. help travelled and team, said call, retirement, I helping we've again, don't as deep I today, do really I respect I this those this a for new with been you what on of will so better. as relationships into thing this and all received just not have of of the I'm you have make sticky I've probably we industry, I of many am in I you, retirement many one for succeed. you, phase, our proud you many executive do with on for chair. all last call but company me of just formed you add as have company move congratulated this today. many of We consider with on many notes nice argue things this And notes, But

and in what of a of at about look. morning, And serious, I to a in Kevin serious we to gathered and role preparing X:XX As in I they wanted blank fact, pretty the call. was them about office asked me got think for matter next a kind play Jamie this way very think Jamie's to weren't, core they and I earnings

more So come I all to company. for in think that, I'm on but this

most I've of appreciate I the company. I some the you guys, this this always guess, you I or before we in Again, with And to enjoyed I'm that found honor reputation comments. executive better were your done team an from I There have teller that. Kevin, relationships, I of regulators. has And leave question. wanted transparency with Board's serve when transparency to the -- company proud proud it. I line remote than hope again, that So hope just the our for leaders the branch I've to I said been support I'm great me, thank

Kevin Fitzsimmons

Kessel. Congrats Thanks, again.

Kessel Stelling

you. Thank

Operator

session. like the question-and-answer for conference Stelling I closing remarks. our any Thank to Mr. over turn you. concludes This would Kessel to back

Kessel Stelling

thank Well, you.

thank of I I for think and everyone for think company. continued just our support let in -- but again and [indiscernible], joining interest I just me your

I update throughout think challenges persist, heard team today, our you've as but remains the determined.

our despite ability results Our deliver reflect to certainly the first quarter environment.

right. is focus Our

right. are priorities Our

And on digital must set. places right that understands the continue customer to execute we've this the deliver in in capabilities. are we investments team advisory fully and experience Our and expectations

want steps team move So Chairman in I to in CEO, my just energy and our Executive said, great optimism again, as Blair as sure understands company. of I as I into just confident role new the never and high Kevin been make and among are just that this more the I've future of the everyone

call So and a this thank you Thank you. rest all hope have again of on you day. the great

Operator

conference now Thank presentation. today's has attending you The for concluded.

now may You disconnect.

Synovus Financial (SNV) 20 Apr 212021 Q1 Earnings call transcript