SNV,SNV.PD,SNV.PE - Earnings call transcript Q2 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning and welcome to the Synovus Second Quarter 2021 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I will now turn the call over to Kevin Brown, Head of Investor Relations. ahead. go Please,

Kevin Brown

good and Thank morning. you

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

limit the one call. We the will available be of and to We question that answer yourself you end follow-up. one your questions at to ask

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

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

the see measures Blair to presentation. overview reconciliation these may You appendix of Kevin provide an And will quarter. in our now, the the of

Kevin Blair

Thank earnings second call. thank Good everyone, for quarter joining morning, you, you Kevin. our and

another an quarterly and in with quarter, assets, while in earning maintaining Our growth expenses delivered expense team resulted solid that X%. discipline revenue year-over-year declining

to continue outlook that produced improving we see Additionally, credit allowance. an a release in

through rate million benefits achieved XXXX. forward investments, $XXX with and run benefit rate our second a an initiatives continue in by we to Synovus Finally, million pre-tax successfully year-end pre-tax deliver run on to quarter in $XX come additional the and

up compared of you loan the year. we second performance of of year. second a at We shared it PPP, the Before half deliver in to beginning me to the I take expectations let date, would excluding ramp it as our you and the our to growth, that with remind proceed,

through that mix Also, the will we would drive said also Synovus with the improve the initiatives margin. produce and we cost efficiency while would planned environment XXXX returning operating continuing objectives uncertain concluded to we half moving to am optimistic first growth positive are about funds our manage stabilize forward. momentum credit and of leverage, those expansion deposit prospects are the share assist effectively lower in the I We of and for and with Forward. today considerable benefits we pleased that delivering from the you on and to to

Our actually line allowed further strong, remained pipelines which C&I during to liquidity and and funds optimize to are quarter. reduce commercial Client deposit loan commitments quarter. levels, in us this has back increased again with our utilization cost growth pre-pandemic and continued slightly outstandings the of our mix

trend continue rate expect environment. to We this this low in

performing Our treasury are wealth a high and businesses and at payment level. solution

new while source has offset of begun pipeline will to create revenue, the solution and been of This opportunity significantly one a half Continued time new fill, proof launched Synovus the our that operating business these by continue reduction we move in Criticized margin And treasury mortgage sources of for signal a growth customers already the include: payment the and this receivable to priorities money. of called the solutions Key experience A and towards classified in the units concerns and day AR. and fee business by credit saving Accelerate over to our help activity. integrated income-generating to future to the quarter, time allowance enhance of the continued Synovus. loans invest levels. new the point customer another raised year, couple during elevated the of to back suite CECL declined to deliver benefiting which received pandemic continue them will abate sales down industry-wide first in expansion growth. the examples and and of well solutions has

We With do new our customers capabilities, commercial business retention. functionality digital have for platform higher promoting we XX,XXX and business business business banking. migrated and of and our Gateway, easier also expanded to for levels Synovus to are clients approximately making it

we've smart from our has previously further on bankers across have to analytics is markets out shared the Lastly, and tool our customers. share expand an opportunities which and been our of rolled impact pipelines increasing beginning and wallet to our

our the satisfied to personalized reminded delivering experience and and are show our during We quarter again received These quarter. on continue rather of are foundation a our family but and matters not future themselves, affirmation of approaches that two And satisfaction those office than and of and surveys growth. for loyal awards that value-added clients efforts are Industry-wide provide that meaningful we for also in scores and accolades more customer the for our our focus a second having excellence impacts consumer are customers. will our competitors. also during success our

Southeast, economic the all in in remain well expansion path to we as For continue that these our expect vibrant of as we forward. confident the reasons

to benefits includes or credit million expenses results. for of rate $XXX million, diluted and provision resulted in of losses Pretax by first million three, adjusted million $XX diluted highlights share. $XXX our Moving Without financial million of quarter. of Synovus $XX or adjusted a per the Total income slide run $XX of $X.XX quarter $XXX adjusted million was earnings for revenue adjustments, net earnings net which from reversal $X.XX from income the increased Forward share. have $XXX per million

or given $XXX Despite million continued year-end solid Total confidence our completed delivered on million $XXX an third-party and us the portfolios. prepayment in quarter million of commercial XXXX was a up transaction were second led Growth quarter. excluding deposits estate by PX Our or consumer loans core initiatives remains as pretax deposits benefit in give aggregate production ability future continues by environment. loans X%. X% our and of headwind activity million $XXX run rate the well as our core the achieve C&I in portfolio to XXXX. non-interest-bearing consumer of high growth levels, liquidity to lending, Core $XXX increased real elevated million the and in work in end $XXX by

we the points nearly of continue in excluding our the well to We and XX% to criticized ratio metrics strategically ratio classified allowance capitalized cost X.XX%. $XXX XX more further remain A completing X.X% by and in economic releases. current with share million basis to ACL increasing credit categories points basis the reduction stable ratio outlook half Key coverage points loans loan-to-deposit a loans higher supported including With four the deposit with CDs the and PX basis while declining reducing declined CETX base strong. were The quarter. remains the to broker authorization remix deposits. XX ratio, NPA and ACL favorable

capital while on it Jamie liquidity serving a executed also guidance. earning more We now growth over on and an With that you for Synovus detailed activities later above quarter, to Forward I'll target. Jamie? monetize an operating and our asset our to financial rejoin as will overview update, turn for additional excess keeping update I the for

Jamie Gregory

you, Thank Kevin.

$XXX slide by $XX declines shown declined As PX four, the ended with we led of on of balance quarter earning million loans billion. million. $XXX Total assets

demand. continue levels result to the gross While loan downward to continues on pressure in production liquidity environment improve,

years and customers grow past loan annualized Based increases X% and commitments to A into average XX%. are are approximately of material subsides. to utilization relationships. commitments is closer translate that will our in of continuing with client the two begins long-term XX% liquidity overall as of more line line portion relationships will in an new utilization compared once C&I their believe to growth growth total X%. commitments, to occur conversations existing our intelligence on over in cycle utilizing balances The we the While balances, to line later the in increase funded less normalize clients, than rate client deeper we of annualized to funded market

that current will included loan assumption growth levels year-end. is utilization near guidance our base through Our line in remain

support While pipeline, our paydowns elevated production, confidence in payoffs growth, our commercial that near-term is expectation will and loan of longer-term commitment abate. the will for the continued strong and based forecast level in the growth on the growth loan

$XXX and resulted utilization $XXX in mortgage C&I million portfolios gains remained confidence recent loans capital accelerated respectively million million $XXX largely changes excess accelerated as impacted quarter continued $XX $XX is owners further $XXX loan many changes from be PX growth, million, declines to June, data. In HELOC growth historic million quarter, that XXXX. are selling approximately in loan Another while more of PX In in second this of liquidity. by increase commitment with gives CRE lows. in in line factor declines by and payoffs million. monthly consumer that excluding C&I prepayment increased balances excluding grew and balances in us the total expectation taxes the activity near with will

in unearned approximately which result at would utilization the two balances. line C&I $XXX in detail of loan fundings the in normalization in had million. more billion. ended to related a balances fees activity offset million million $X.X PX We $XXX funded reminder, loans PX There's a quarter As net of Total of PX in forgiveness than more round partially $XXX appendix.

we environment, of function quarter in first securities about consistent XX% and look further the secured quarter the and in and $XXX with opportunistic the increased second was half XXXX. those risk as asset in The assets $XXX with a securities for largely of Lastly liquidity acquisitions of the total liquidity we million securities accounted of about third-party consumer profile increase of this Investment loans. at mortgage-backed as the deployments third-party portfolio for end portfolio million. consumer could emphasis of completed

continue This bearing was increased million of transaction declines shown prior which we the on slide higher or $XXX million As which deposits. or core deposits, to from cost led X% offset in strategic core quarter. deposit five, growth by grow X%, $XXX non-interest

total associated the driven XX interest time our basis a optimization a mix continued of deposits, combination We points. reductions high-cost strategic continue with This as a with a points reduction on deposit success, by points six deposits. focus in basis the have was in with basis reduction bearing deposit from as of to quarter expense in costs to well reducing second XX

improve interest-bearing reduce opportunities slow the mix as deposits pace maturities half we XXXX. second on and the of the CD While progress of paid will to other rates there deposit through significantly are further

forgiveness are net the Other similar headwind of costs. $X of PX the day PX to expect deposit interest from asset from points from quarter. quarter. The prior PX costs growth of deposit Slide reduction and For further $X deposit reductions year. X.XX%, more the prior the in decline million NII in million, income a income. further and points the by reductions by count offset this was interest an from as net month than were asset fee margin reduced in total increased of XX shows as six June, being increase offset benefits dynamics as costs re-pricing million quarters total costs basis fee we $XXX impacted primarily of decreased recent accretion two is liability basis

expected, securities improvement impact mortgage quarter the the Deceleration in second modest is the of improve $XX Based quarter to of down quarter, of the million from slower on third in helped supporting on in we'd a normalized both in prepayment further in the margin premium resulted $X yield As as portfolio the part a of first activity million prepayment in more latter reduction yield current and quarter quarter. realized. the of NII. activity expect the prepay that full amortization activity trends,

our sensitivity, and asset mix in continues long-term balance to estimated being increases funding aforementioned exposure to short-term split both rates. in terms exposed supported the by the positively between That interest dynamic with of including sheet, In be rates. shifts potential we remain

our PX prepayments of we approximately absent and the XX XX, NIM or June Based expect variable and deceleration variable Using excluding on hikes, points. -- further of loan deposit income forward quarter-end a by a and floors XX% impact approximately liquidity, and rate year, quarterly current growth, basis increase the X% we curve above short-term those the absent growth, of of cost of conditions interest excluding reductions. have being half lapse expectations PX notable coming for with the liquidity, loan our continued short-term at loan offset excess long-term fee is of the from of rates. index headwinds net and accretion of deployment deployment As interest or rate fee PX in reiterate increases in loans second with by accretion the of rates should portfolio expectation our of market either that XX% from upside driven

the offset on previously, deposit shared dilution across the approximately billion Federal and merchant production. of continued led the $XX overdraft revenue Increases were fees of mortgage other due for levels estimate in-sourced Reserve. a and Increases payment treasury production industry, lot markets million. revenue we've Core our in million $X XXXX. banking total million, million cash of $X levels increases that of quarter. $X $X continued in X non-interest all-time $X basis adjusted $X were we growth have X.X% by of received half of diversified business. per expect points the above million, recently fee X% at in non-interest pre-pandemic As $XXX shows solutions secondary $XX on team seven NSF million and in and from in capital excess in fees, were fee accounting our we million income. less revenue from reductions sale. or which to revenues from of the NIM benefit fiduciary normalization of Net million in revenue previous attention sources, million areas, of This is Embedded second continued total strength revenues. throughout at up the mortgage a including helped down fees the revenue and than in quarter analysis partially to flat high offsetting $X declined second of decreases the business normalization our account Slide gain broad-based remains

the provide build-out grew in and Total continue on down an Adjusted was up the an of deferred services was pay and of impact in by non-interest down The in with previous million million to will and branch from quarter increase $XXX quarter, primarily repairs million include software the largely non-interest fiduciary million earn-out million, well fees closures. $XXX of prior expense variable offset from management slide Florida $X from was the million of associated taxes the restructuring meaningful $XX South under partially and quarter seasonal maintenance. is X% compensation. XX% and million as highlighted opportunities. Adjusted increase payroll compensation liability, to equipment related other Employment from prior occupancy, year. growth eight. prior due expense expense quarter Assets items particularly wealth the year. commissions non-qualified decreases $X as Expenses million and other the and increased management $X of to previous as $XXX the days an from in in $X

million associated million opportunities. up touch we evaluate with expenses from Kevin and to will real of Other in optimize non-branch fees and the processing million, due to forgiveness additional $X our As additional the third-party on later, branch continue and loans. for $XX efficiency expenses estate were primarily increase $X PX third-party consumer

commitment continue strategically management allows to prudent and growth expense high-return Our growth to in invest compelling us to vectors. profitable

reduced year-over-year side. was support reduction in our priority XX% on in have approximately We the of a our efforts. headcount management key which headcount X% is This expense

on some are and costs team members there offsetting more to hire responsibility continue are as promote taking we customer-facing members. However, team who

stable credit from Our expectations for nine highlights lows. remain near historical benefits and remain expenses Slide metrics Synovus unchanged. Forward which

in the Support criticized which the of million and to classified is a and ratings in from for reflected $XX conversations see comes reversal XX% improvements outlook client and for credit overall losses inflows. in reduction cash loans. of continue economic improvement the We provision

to appendix from charge-off the As inflows shown up to XXXX X.XX%. The period the a baseline. in quarter which XX% are May we same cash more for net use annualized than compared pre-pandemic was as each ratio from the March

economic second the half of relatively assuming We in in expect no stable to charge-offs outlook. remain XXXX material change net the the

progress PX the of Criticized basis basis ACL the as rest points XX of loans fell points prior of X.XX% through During declined the down was quarter year. XX classified reductions NPA four from second year. ratio expect the basis and The basis further and points ratio excluding from XX XX% we the to the quarter, the and end loans points. we

scenarios use We the a scenario. continue X% to in of XX% weighting adverse to XX% and weighting and multi-scenario modeling an weighting sign a framework our base to CECL scenario to upside

in a performance. repurchases share In as of repurchase $XXX risk-weighted resulted point As asset strong growth was shares. and noted for million common X.X% ratio outstanding second via repurchased one on in a The the XXXX average of of building authorization $XX deployed CETX to the equity basis increased XX, million diluted our slide the capital place X.XX% dividend. share reduction we quarter, which result

approximately expect million in current the We the activity completed we repurchase Based economic to conditions complete additional of $XX full on of have outlook authorization in July. half and year. the second

With for we objectives We balance We turn Kevin. will shareholders our our profitable priority continue as target opportunistically and X.X% complete to back remain to growth it being our operating key deploy to strategic our with relationships. multi-solution capital well on remain positioned including that, the to sheet highest CETX. I'll above

Kevin Blair

the The growth. of our nimble At our bank earnings laid continue through low-risk aligned Synovus deliver to Synovus strategy take Jamie. strategic are Forward markets. Forward our line initiatives of high-growth in top and out in beginning significant that enhance attractive accelerate efficiency of XXXX, Thanks set to with actions upside to our southeastern share we market a can building plan power a

I As our rate have totaling we add highlighted second million. throughout Forward to quarter, pretax continued run earlier, to Synovus benefits approximately the $XX now

the specific branch the estate in initiatives. a $XX run relates quarter as pretax expense come decrease reduction we rate these As XXXX and of headcount, initiatives. well $XXX the Approximately of on Success we largely you front progress primary third-party confident results XX, and execution, plan to-date of by delivered and we through benefit million has have and in efficiency million as slide a well have million real ongoing and as Based XXXX the as to-date spend, combination upon in $XX of on the can revenue consolidation. expense from areas; milestones a three end respectively. achieving to our the $XXX these achieved remain corporate see million

$XX in pretax but in the adding initiatives achieve of new the by to savings end to $XX areas increase of an and have benefits of We these each to also plans incremental focus categories million are XXXX. million

in to and Additional third-party all contribute a tax and efficiencies. savings, will optimization, branch process non-branch reduction additional automation, strategies square future workforce drive footage,

has to to-date million pricing-for-value had also The the in run Forward our broad-based the providing annualized Payment in the and have services, million increase been of pretax benefits pretax and needs-based a quarter. landscape, $XX in of The success proactive Treasury approximately rate by realization products rate in has benefits. on advice. of side initiative pricing We supported and Solutions $XX commitment a Synovus revenue run enhancements to with resulted second competitive

with deployment the capability addition our the environment, to we a robust low have In better cost as of to a levels able to move new now of the originally continued future. rate expected, tool tool we and in environment funds a manage lower was than pricing we have elasticity more rate higher reduce and customer also rate been and into

we solutions international where our include seen of revenue currency incremental merchant business, expansion and in-sourcing merchant areas of and capabilities. such payment have and trade Additional the as finance and sponsorship business, our expanded

As will expected ongoing as team benefits in to expansion. we $XX be largely strategies, pre-tax and $XX products solutions, well revenue initiatives, to analytics, as plans million talent balance the specialty and and sheet turn management future million accomplished new through

translating pilot, we leads on working analytics, encouraging refer overall share our make it of into utilization sales to our wallet we expansion and our are insights of continue far thus to now as As bankers actionable The are clients. to existing progress are and and Smart new of feedback relates tool. which commercial as the the that aforementioned to analytics

rollout the with pilot third We in in continue to quarter fourth. will company-wide a the

the In attrition. will program, overall to in to of while of customers, impact our wealth share retail develop the levels our have have and a meaningful ability consumer our of we reducing wallet begun analytics which deepen addition, also

our We of specialized adding serve attractive are capabilities sources businesses, teams, launching well specialty verticals, new premium finance and as strong lending as as innovative expanding revenue new products and highly and growth. targeted to

continue high-tech revenue. past, didn't to an will with just pleased high-touch efficient not the would find become improvement update competitive from that Forward focused possible, am this is Synovus in of and we And team clearly and approach, drive our of initiatives. remiss, constant I feel mindset sources on the I if I noted as our innovate have more members a to We complementing general. new slide advantage a I with investments and in our our of end on be ways art new partnerships. collection As technology come

enhancing We both continue consumer client experience. to make in and commercial digital the progress the

deliver We and new to in the and time controlled right solutions, are fashion. we products over move a a a have partnering with segmented FinTech's modern build and and core to roadmap to

to origination payment online the continue will ways focus areas. and to in as-a-service capabilities and opportunities, on new technological We increase evaluate banking especially

which Moving to our includes changes. have key outlook, This XXXX slide few XX. a

certainty to and within year growth. outlook, in With loan the the with and loans and clarity. begin our We updates growth excluding economic the some to PX first half be of I'll still us behind third-party we'd additional provide greater expect loan X% guidance, consumer like loans. to X%

due more primarily have to However, was activity we this line end that, a and to-date at the we of pre-payment the range level. anticipated think assumes that levels of normalized the we're pre-payment activity elevated that This year. remains current at at the returns utilization it's seen low to beginning low not likely

not third-party guidance. period-end held asset million investment portfolio do class This balances, this include for reminder, XXXX. Pre-pandemic in we in this in up billion approximately consumer $X loans in $X.X a As was $XXX billion represents outstandings.

with and managing we credits, Over had a five returns. incremental have and years, record revenue originating the providing past solid track successful these plus

adjusted purchases to We liquidity will strategy future revenue the the excess raising of returns expense. constructive. for We're this well relative our environment and as as as total total expectation long persists, are employ adjusted continue as

consider while of have to opportunities it's taking associated servicing third-party Southeast. related are and advantage commission areas these the growth and providing to mortgage reminder, including higher and and because expenses together, balances additional appropriate that production, a revenue, examples expense, in these remain As to we them, consumer committed

that is priorities top one leverage committed XXXX. to remain We for of achieving and positive operating our also

change in interest not part updated as incorporating We guidance. rates the any of significant are

increased increase will tailwind the meaningful sensitivity, note to important rate it's asset a Jamie referenced earlier, as in provide Although any to NII.

greater target after management likely is completing CETX now result ratio the includes to $XXX million a authorization to above a strong operating of the stable performance capital continuation outlook equal current share Our target. year. or CETX in X.X% entire above even and repurchase ratio economic for A X.X% a

the Additional result focus throughout and strategic of execution XXXX strategies half tax roll in investment in the both excitement further the of of expected our for effective provides quarter. but operating entire I an Synovus inorganic. and related forward XX% level before We're are or out as note also second The call the currency and to tax year, XX%. to in this ETR XX% strengthens of our to success team XX% future second efforts looking from discrete items. opportunities organic success. an our various and feel environment is of to rate Year-to-date, work for mentioned us that to today's and actions half the growth position increased It's continued we we've long-term important

strong Our is for balance capital and with well sheet liquidity. growth positioned

Q&A Our winning. to our grow they're are clients the portion for Synovus partner. turn show of are to today's our members business with the call. over passionate as call and With their delivering team about operator that I'll poised And that very their pipeline

Operator

[Operator The the from first line of ahead. comes with Michael go Please Instructions] Raymond question Rose James.

Michael Rose

you? are How everyone. morning good Hey

Kevin Blair

you are doing? How Mike. morning, Good

Michael Rose

I wanted guys positive which on then that half bit ex guidance like loans lines would quarter, quarter. first doing Good. to PPP were outlook. loan start two And in little the a of the in third-party the on if It math basis I'm and core Hey the if back the you exclude and right, looks the down looks up second just were the both a the growth some those imply like it year. this growth

of what the utilization can Thanks. So, around appear would still paydowns and balances? remaining loan core low in a those remaining inflection reconcile kind comments be point to line high positive of kind just you

Kevin Blair

great a it's Michael, Yes. question.

large quarter. rest $XXX talk the we're I to last the on grew XX% backs that piece of production. A year. you and this of that about the was think versus think for make XX% PPP the this of I happened of versus first quarter year, quarter. on were on very When We strong exclude $XXX I the sure before the was actually grew important all we as C&I quarter what you second past and it's We actually mentioned, clear the up that million quarter million side.

We also we had, to grew the And make capital as the as excess sense. in $XXX really with and liquidity third-party we've would securities portfolio that's shared those felt past the million. the we to returns as And surrogate book. the roughly continue make we purchases long

take unfortunately, saw lost the I off increases to be to up payoffs the they on leading is CRE also we levels quarter. of good quarter that's production XX% tax. think as chips in side, we one But in this thing the we increase capital borrowers table in an saw some that to saw funded there, up start what versus perceive first unprecedented the gains

a million. runoff there saw So, about we of $XXX

in pipelines return the to are previous quarter pre-pandemic year versus pipelines. of quarterly inside seen some We've as growth and our said XX% up levels, line previous with stories. So underlying the there I

those actually XX we our of because lines As business I pay-downs. the business and the first increasing only had is the mentioned XX of XX CRE the side, -- of in on primarily commercial our sublines our production business, up production declined quarter, from our at actually you was across quarter. during grew pay-offs XX% When franchise, commercial look in we but have total

on $XXX CRE but also not actually tremendous XX.X% a up grew million. in it's X% point XX.X%. We in to saw momentum June And to going your million was into C&I where and June growth utilization, loan task it's June, $XX Herculean from line

whether starting And was growth, activity bit area, transportation, of several to we a across healthcare industry insurance So the warehousing, finance, see our we're of saw it little broad-based there. industries. in

from general, production. pipelines in year to starting both So half think our some customers picking across see from about the borrow the what on that hear balances there's momentum of which the liquidity completely we're gets demand second the kind And up. they'll is more having excess We're and build means us before we hold the through is balance that to again excited to of run-off secular their industry move start to sheet, a been cash. starting that

that we're second planning we half will half that as we for of said, of be deliver low that achieve X%. we're the to growth to able range. and So be But year towards the optimistic think to to it the X%

Michael Rose

I if hit Kevin. can really color, follow-up we great on That's my expenses. it. appreciate just as And maybe

on of just flat You we you're the couple gave the on an franchise. like Forward a midpoint should Thanks. remain of levels it? these of the Is would of And of at expenses priorities color in is reinvestment if what it invest imply the I are? would Synovus the then kind basis quarters. to relatively continuing maybe could assume the think that continuing that that way kind if some the and initiatives like about and guidance, looks I in adjusted next there. But you lot else the everybody It take the progress outline of

Jamie Gregory

Jamie. is this Michael, Yes.

things. increases and different year are flat due You're second in of expenses the few right expected to on the be to half a

We third-party servicing have expense.

of there we this beginning had is the guided towards larger portfolio Our originally year. than

for we We have continue increased invest the to PX processing variable in lastly, third-party franchise. We do also have with compensation expectations. associated And expense us. giving

in Specifically, multiple you areas. see it

an technology AR customers. of We're and A about we weeks accounts where associates that the now $X.X on Accelerate we're also businesses members revenue program, annualized verticals, to to old as track to from six embedded our treasury help that guidance just is advancements appropriate. weeks better. receivable all year XXXX. at we're solution for at looking I would of deliver in. our only us example growing looking recently That's team launched good point And First, customer-facing frontline in our and six our that spend our for receive is full million in which

Michael Rose

my questions. taking for Thanks helpful. Very

Jamie Gregory

you, Thank Michael.

Operator

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

Jennifer Demba

you. hear me, you okay? Thank Can

Jamie Gregory

Yes. Jennifer. Good morning,

Kevin Blair

Yes. Good Jennifer morning,

Jennifer Demba

comment? anticipate give will a migrate details mentioned, some Good core you Can that you you morning. over Kevin us modern time. on Synovus to

Kevin Blair

part infrastructure we investments a it's our to make Jennifer we time. believe over of that Yes. have

and create won't is that over that's move fashion need the shared there. cloud-based it. our new agile Synovus as we and it core for you and services doing it of versus of is rip add then We our potentially a then on we rip do we'll the the that's core to that would certain modern it businesses a it you by do of in mainframe prudent over core into start allows adding move to capabilities, where new platform over to in functionality what us off that could all connection sense, to replace is core methodology. start really agile API core that expand tomorrow. think will we've of the our And new and And kind segmented real makes we with new applications we'll today What and And that products capabilities and our allows be modern a value in a platform. to time as certain see in approach replace more move over new the moving solutions, digital much Now adding capabilities customers.

we we'll how over where that's the ability have do to years, several do that So the opportunity over. to that. we And move things would view

Jennifer Demba

you. Thank

that I pattern the industry think Kevin. of well will follow as kind

Kevin Blair

Yes.

wants order increase in massive because I to think do a to in so that no one hear expense there's Jennifer that. just

it in the time So modern be And is your to and to all over platform. go the get where do it a your business of of out you allows a way fashion business. pathway have you more move that to in components then it efficient over you able do to to ultimately, parts

Jennifer Demba

out -- mentioned the rolling quarter. Okay. third of future us environment you operating little more Can talk just there? you work give you're Also, a detail

Kevin Blair

Yes.

So of for members we it, Jennifer. it's brought -- But back Synovus. our roughly team XX% it's We've think here in to for note us, office. already program, together important call I our the

remotely work today. our have members continue So of about XX% we team to that

to team a third then, really which XXX% of summer evaluating set and of those members to And office spent more have like remote. be XXX% would members the needed family the that positions in time job flex left which the of schedule. so, And we work family-by-job of to be a that felt one team determine needed we've

Number to work attract a out, we this additional not represents we middle for it's those roll to remotely assess the sure that will and for the to continue look we'll environment continue can which two, rolling we're talent to be the about us That feel level that of we're adjustments time. the work week in of we'll as begin with X,XXX of normal. Number office August, productivity, team make And those all flexible at and was next work effectiveness make able with our and the was to where make positions. now environment We'll of we next permanent. necessary that, full competition forward. members days positions right retain team as at we to work then which a needed it back It's to so, monitoring to about workforce But of we three have of one, need perk important will XXX was around evaluate off-site. of days August, that be today's our is for then, going X,XXX to return And that talent. this the the leaves level I work identified, two that members testing time. any our and this will to think, remote. the which we felt that in members, like that out want will come And for team members. in to team end another the of come work members XXX% We team the that important schedule, XXX

Jennifer Demba

more much could you thing. ask right I If seeing pressure now? just one wage are How

Kevin Blair

could some in where positions in New can Texas increases Jennifer, we've and individuals remotely job or to York. see entry-level we're some starting California work their for And positions. be of attrition that some in seen or job our

bit a to that. we're so, of starting little see And

we've -- really match becoming especially, So with fairly you'll And leaders started pools salary a made and kind all and what's for salary competitive last make to our additional months hit to see couple also of it salary addressed to adjustment We of funds it's combat the members an in level. that a continuing with provide relates sure our as of and below positions. landscape, we our or that compensation. entry-level our adjustment, teams. to as team it those median us of we're But relates internal to

Jennifer Demba

you. Thank

Operator

Bank go Securities. America comes with question next from of Please Ebrahim The ahead. Poonawala

Ebrahim Poonawala

morning. Good

Kevin Blair

Eb. morning, Good

Jamie Gregory

Eb. morning, Good

Ebrahim Poonawala

you up guess, I way. Kevin. on around conversion, the I it does follow time the Is question it that? it to a -- would. wanted -- allow us doing a the meantime, in Jennifer's just line things modern certain Talk understand mean, you're And that? do what's XXXX? the to beyond of that full conversion core I it One, to Is fragmented in not

important Just be, give in of that that and capability with us have sense terms a timing both, of the conversion non-banks? banks how compete could to order will or additional the one, Synovus in

Kevin Blair

Ebrahim, it's So, a question. great

pilots determine fragmented story, as that's of And frame. the because, what will run. think the conversion that to part We be success I haven't these the time important of of me, some a will set will ultimate

digital a learn most to ultimate some ultimately is It we if do determine And we frame products way the that may from test to us on out one figure a what of that. set core, will to our But vendors. So bank time new over scalable or for pilot really we'll is. the vendor, move pilots. two those up the what's

to this a to doing fragmented limitations your so. believe approach, as we Now, in by don't question

that sure and required. out we that's just I that great continue that is to core takes -- feel frame that contract a days. our provider schedule with more can to to like little that add We example an able AR. we to core the XXX on needed up time A Accelerate mainframe we work the to with that are open we And mentioned necessary. new think, for products a today, Jamie We It to that it solutions time. can system. from make folks and of example earlier was were platform connect apply did

core that would prohibit the from us So, less just efficiently, its modern to but abilities things. inhibit the costly that can you not even in the will more what a it more future, the our things speed and it's short-term. not table, bring We're doesn't where -- -- in something excited doing about do

Ebrahim Poonawala

for of scale? any accelerate just think easier do M&A to that Or And undertaking in to it that tied and large to easier make terms that, would it you investment? that M&A of about is then

Kevin Blair

I the do our cut it think reinvest of believe M&A, either at of someplace coming But look I We've lot we technology can you -- way can mergers. look this to spend existing Ebrahim. if you that can messaging else, you that, seen at that a Obviously, our mean, budget allows we costs out that. the recent it year. today. within the I when with

in new X%, spend additional a acquisitions. our shared and we've increased to spend drive that of client increase expenses X%. technology we yet to special projects, our down add call, And revenue we're we're by in the comes majority large growth on year-to-date As able the on basis where

in a efficiencies we can factor that Forward don't to I find merger to either. think want so is a take we'll place areas technology. the that limiting So, to that into other frankly, like talent continue that having areas, utilize not redeploy Synovus invest we and Quite

Ebrahim Poonawala

Got you. it. Thank

Operator

with question go comes from Please The Brady ahead. Gailey next KBW.

Brady Gailey

Thanks. Yes. Good morning, guys.

Jamie Gregory

Brady. morning, Good

Kevin Blair

Good morning, Brady.

Brady Gailey

with It's wanted reengage to all start see I great to the you buyback. there.

it tangible. you've to what all quarter. halfway million million. last think $XXX tangible of include your the you beyond repurchased If mark. me, at could go seems And around $XXX you to little I July, million now you is I million there you're the It's in now cheaper $XXX repurchased a stock about $XXX like of But think

kind that you buybacks actually talked maybe just see the the that could threshold talk million that it's of we possible if So about pullback here and $XXX in stock all exceed about?

Jamie Gregory

Yes. Thanks, Brady.

managing been we sheet. progress we've proactive our XXXX, in through As balance

growth as seen that our in as through mentioned in share you as repurchases in partnership both well portfolio the lending second quarter. You've

so us core our look growth, best. that's with we we is point-in-time loan will for pickup gradual not we is in expect and of along above target just half objective a use we're the is year, customer serve balance medium-term that growth. to second the the of for the expect where apply same the X.X% our -- loan we or in core really can forward in I half that comfortable that target the run. our we operating short the a our that that year. priority themes And second to customers objectives, sheet for materialize manage expectation it's As into ensuring And our position, below those

will above As capital believe that forward, core purchasing the earnings actively shares long as shares. the are assuming valued been should it's we they cover we the will facilitate million in provide operating to changes to you've customer enough we outlook share plan core full that $XXX prudent. attractively quarter-to-date. actively We've we repurchase and as as seen remain our target growth, material in no mentioned. as and look do second We purchasing you But loan continue in believe we were quarter,

Brady Gailey

second then question. And my Okay.

mean, So XX% the there. you getting about XX% talked you're Jamie, up to assets I earning book of average bond to

think little far about grow higher. we much the bond book continue a talking maybe could as you how What's as see here? to could max going the you're Now of that

Jamie Gregory

that environment hard do And a we're a XX% for unforeseen this time we're give We're where liquidity Yes. managing a is very you securities in assets opportunities what we loan growing And strong view. half We're shorter accordingly, with management. We year, you dynamic. of and And portfolio is you're And with foreseeable when purchases the liquidity they're are profile if very think at are and it's Right targets. levels the to that growing in for about the for the asset that the to we give assets. unexpected, continue manner in we the we're familiar examples. They me remain about the lending. what that then to specific of with, And great we an our absolute securities them. environment. targeting. sheet durations. as the are managing we're third-party being level, third-party and the will a classes managing typically, customer But where believe are. great It's second will our aligns that in of at question. balance credit prudent half this because really see pursue on year, look hard me as it depends liquidity opportunities at you our look it's But sheet we that we portfolio, our at now, balance unique fit thinking first forward traditional if into in future

Brady Gailey

Yes. on And consumer Jamie the what quarter? was third-party purchases this yield the

Jamie Gregory

portfolio this with third-party a a quarter, in million The quarter. there purchases But purchase X%. were purchase than gross $XXX largest second the largest the -- more was purchases multiple in little than yield little loans auto the a more

Brady Gailey

All right. Thanks. Great.

Operator

with comes question Alexopoulos Steven ahead. JPMorgan. go next from Please The

Steven Alexopoulos

everybody. Hey, good morning

Jamie Gregory

Steve. morning Good

Steven Alexopoulos

call a first for already But bit as deeper with for you. what company? with quite you your the of are underway. being CEO, you a into look long-term us this as vision see our you give there a I initiatives Kevin, know the could few

Kevin Blair

way. our growth. same line goal with to saying, And actions and I efficiency our And Yes. feel is in a great build call, feel our set in It's question comments win. the we've of start that earnings members looks the of to improve team the my know And past for like. accelerate allow growth my a strategic upside what will top had through I'll significant power similar look our us know to that you by in Steven. discussions it's to our job I And earlier company I like

aligned that's directly in to take low-risk build feel is and high-growth bank opportunity that a with a market share attractive like we we our think what can can and that very market. Southeastern continue I

footprint. is transformation we're word great so and sit extremely I I used in so we bank building the feel like And -- the because positioned. our well a

able customers we to every It's of with. But areas I focus a do have It's to truly day. us there have into doing business. to is to that an out. bank not I one stands Number the We bank want business ease look easy history is XXX-year for future, think of on as to rocket be our that important science be recognize a that we do what are a four performing.

their Our team work easy for to a place members want that done. get and job to come here it's day have every them a --

generate important investing with stick overall our how we're We which That's going times customer and process shorten energy the so, improve and where time we're improving we cycle customers. do our client to experience. to referrals and great our journeys growth. because business prospects it leads And through automation to

seamlessly area of our and solutions is deliver of second our focus being of around segments. all able products across to all The

that means right bank, deeper wallet the relationship we believe in earned that customers. silos. deliver a of we've And As our with that to a share we have can't

And we team. we but that do of we our type that and a of job products feel have solutions We our as will to better deliver across solutions serve and ultimately also source a we that a customers today, can of to as revenue. the do increase delivering bring that

clear area approach, The the high-touch loyalty loud that with apply take and is, our high-tech scores in match third past a will to as and we'll about and I talked which complement some it. shows our approach of we think

a other there's industry. our to professional continue the work compensation team also perks talent the continuing in and know to is and great but table, wallet expand development base. This but And we'll attract place solutions So, to lastly, us then with will to and allow that on along our the focus the technology members. deepen new we'll and opportunities that improve and top for again that, members new team to we through of bring customer analytics to our share

transformation and that it So to four we strong peers that and industry we believe of of we the out foundation deliver of have, ultimately on bring our in think areas stand exceeds the when our marketplace. in position that us those with a growth you puts that along

Steven Alexopoulos

color, you That's be? or that realize based where you vision do want on need that ultimately terrific. that the you current Can appreciate get offering to Thanks. modern you Kevin. I technology to core

Kevin Blair

We to our that competitors. to need is very be landscape. the par compete in I Yes. at think sure technology to competitive Steven, with time make our think over able I

Yes. core I And important? We've of so, since XXXX. think modern done proof is a concepts do two

agile bring goal So think our as more testing modern The on just customers. services said I out. us to the we're with core I the well more to that and is make earlier way of

I that scalable to to model think with having industry and in an to new through And allows is We bring of that shop a can today can the partnering without customers. we our us believe that's R&D do it fintechs. great do bank extremely software-as-a-service our have the way solutions and in equalizer inside fintechs we customizable. our

for mentioned like having solution about then product like So solutions can new about core, also our the partners the customers it's earlier. Accelerate that better Gateway our services to for and Jamie but it's or modern continue things us AR add that Synovus

So I fintech core, right but think, its also partners about complement having the modern it's to that.

Steven Alexopoulos

all for Okay. Thanks that color.

Kevin Blair

Steven. Thanks Yes.

Operator

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

Jared Shaw

Good morning Hi. everybody.

Kevin Blair

Good morning, Jared.

Jared Shaw

I guess, X% around dynamic big total. the that are and further, cash down could of the XX-year portfolio the over security expect we consumer next And at would third-party that see a versus into few if Right quarters loans percentage of you now looking how the of the with with to accelerate as loan so deploying be the incremental book down putting here? the dollars that book maybe getting? comfortable

Jamie Gregory

Yes, Jared.

it you're that into the very As HFF. of referring is portfolio to but and investment total different the portfolio. the the combined than HFI health portfolio, is held-for-sale portfolio, about profile bifurcate I risk for we What think

focus So in HFI the portfolio. I on to want

that level ability sheet. As further discipline. our to loans delivering you we found on sit have see chase far us What actually the incremental these vis-à-vis this we in amount experience the first of balance knowledge, we spread on go not and spread and here expect that taking billion that have these is to low as today, we that in where this grow the get which adjusted we're to to We're the get there back we from should risk, pre-pandemic portfolio duration. And is out strong you to believe and on our returns $X held-for-investment going fairly assets purchases. portfolio securities grow but portfolio just appropriate believe portfolio as risk portfolio,

the much the the duration And prime in it prime like auto securities auto prime two-year on I we securities, loans out in a mean, would rather book. curve so -- credits duration with extending take versus

We're $X billion. to that And today. liquidity in this feel so environment have going comfortable we that. We're something of eye not there's is that not And chase to our but we with there liquidity support plenty number, to.

Jared Shaw

are in an maybe there you Okay. to of the then guess, strategy the reengage thoughts management that like side of to or here opportunities engage sort of seeing, to it market? buyback. growth capital back on Are acquisition a reluctance bit Thanks. on some to in what What's out I accelerate And those and little there extend a help sounds M&A? potentially circling the goals? And

Kevin Blair

Kevin. take Jared, Hey, is that. I'll this

Forward And point in So benefits. top-of-mind on said investing at focused Synovus be think this calls, our as to able to on need remain will I we in and we've million previous activity next deliver we Synovus. $XXX those incremental the be

those you I pro company's present are of the off acquired creating there As underestimated. that I've I and great M&A metrics. forma as cultural system the as on think challenges But past, bank are the all at growth I financial paper shared And think think, looks challenges integration, often look base. just when with well in are

returns that would that smaller to and be overarching focus our over to us we provide evaluate those So and with capabilities for think have on bank can growth allow I and to that Synovus. additive be base. would only alternatives companies customer with existing now a that sort space. businesses our will or time at will profile would But we've M&A provide currency solutions then here improvements, the that And our of options that or evaluated in And improvements we elevated strategies. believe improve consider that M&A would align those

out that intended seeing and mid-cap relates know space terms some that how just I ability still don't think impact recently, active It's with you development. as the executive bank's to I it's close may and it questions branches came to think investment it As a in know to But required to will amount that's out think their that going activity. believe I it's I them very acquisitions. in community a slow environment. what three-year there's why of not to in happening. order for mergers the M&A this increase that's been it reaching are the as If resulting I hinder rate and anything down. truly of low we're transactions there's will impact they look to where Obviously are challenged many partner two and forecast. environment that and banks at

forward like go to We we very the to in have that strategy go we grow don't route are in feel -- confident route our bank. therefore, our And, today. ability in that

Jared Shaw

you. Thank Okay.

Operator

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

Brad Milsaps

good Hi, morning.

Kevin Blair

Good morning Brad.

Jamie Gregory

Good morning Brad.

Brad Milsaps

brokerage the curious side But -- just the base. just anything if know on terms the to to I'm on more of right there's the of maturing to deposits that might there deposit that I of anything Jamie, accounts continuing those balance or right sheet brokered do you optimize on you of curious the side mentioned balance in on side horizon time with of sheet? the be accelerate change other any the might the able things

Jamie Gregory

Yes.

First are albeit median, in second of be opportunities deposit your of deposit peer think gets pace And basis last this do maturing at there you've the strong opportunities. continue total points off, cost we're We closer have made more six those the It is year difficult. point to pleased early on do is to closing we gap to quarter you two expect do very to some last with quarters. of But broker date we've total of progress get not there improvement. wave costs each XXXX. able though the versus zero a as the Obviously the in a even half the We to to quite seen deposits. for are in couple in in quarters. larger XXXX reduce

of an points. around the average billion $X.X -- billion third maturing $X about quarter basis this of CDs quarter, have at XX We rate

to that's us opportunity an costs. reduce deposit for so And

were mentioned June points quarter. the As the for prepared remarks, basis of basis XX deposit relative costs at in month total we the XX points the to for

to So we continue we that think reduce them. can

and money on market deposits. opportunities non-maturity have We

do one key strategic year. this to we priorities median, our second see opportunities gap And we and as to so continue of head just our in closing work that's peer of the into the half

Brad Milsaps

quarter. a that Great. more invested That's helpful. and And seasonality, to going may line some if lot the income more this self-explanatory well? color in pretty then but mortgage on a an as I then just little my of bullish follow-up some just that add some as I fee maybe you you the down a markets see some maybe to was thought. could bit I is than little little business, you add I but have be there that weaker is color And there know been than thought other things area guys could capital a Obviously

Jamie Gregory

a Yes. as look offset secular revenue, mortgage of story as in which success trends would broad-based if NSF. at What by well say growth, great fee I it's is you is,

in growth just due we've And done it's increases. so about wealth, seeing in the market growth growth customer spoken We're equity This in the when in look is is analysis. past account being the not due And at work to relationships. to seeing which deepening acknowledging that as of add for in as other is value. the banking far in card as This pure far as area. to extremely just expertise valuable revenue, on but growth and core our treasury fees. We're pricing our both the company also value we

is we secular or businesses in out So what mortgage we NSF those liquidity more trends there. all of pleased in we with can't beyond pipe headwinds. longer to are are term in industry those delivering our with But the

normalization in We continue So expecting expect that the mortgage. we're pleased with do areas. We're continued those in to growth.

And are expect first, half would the growth. mortgage so we of second versus to the revenue decline the broad-based the in pleased year but in we

Kevin Blair

only I'd the on Brad, add And thing mortgage front. the

shift quarter-over-quarter in slightly, the production was look was you -- there there's to a down side. when think the although mix fairly I sizable over at results, portfolio the

secondary. XX% So XX%. about production only in past This was it first about quarter, in of was quarter our

to see will it as purchase moving over which more time. you our money So production

more provide see into private background and wealth into the go product which to a our we'll physician -- move less portfolio you'll over and think is mortgage just I secondary. as our

it's where sale mortgage in gain in is other down thing revenue total we and is market X% to pressure that marketplace, an impacted which on down around that the to pricing cash on guided. The cash competitive expect had on XXX quarter from the secondary we was this gain see the But obviously very to of a that's mortgages, some area with continue that sale.

Brad Milsaps

Thank guys. you Great.

Operator

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

Brody Preston

everyone. Hey, good morning

Kevin Blair

Good morning, Brody.

Jamie Gregory

Hey, Brody.

Brody Preston

on just wanted loan to I Jamie, third-party circle purchases. back Hey, the

non-interest guidance from provided noncore indicated doesn't think balance that expense that I changes it the any you So, significant the sheet all include activity. around

so, third-party kind assuming fit those that And I'm that into of purchases loan bucket.

ratio guess I you've at that seen bringing in these that on understand loans a me you're loans and efficiency step-up the about of just help the so, indicates on are expense, or about And rate kind these the X% yielding that third-party XX% run so.

over to are ratio the get incremental And as to neutral that guys loans so last running these might push competitive going two actually I'm yields you where months, back to trended efficiency more for which it's have the just given how now. assuming right type of

thought liquidity between here understand run guess rate kind the I expense process loans, potentially trade-offs guidance. relative these but into of to also help around So, the the modeling me your from deploying

Jamie Gregory

few that. me let points add Brody, Yes. a just on

Our expense it down X% includes guidance the today. for to X% the expenses as down XXXX associated the with portfolio is

so, from increase would those not we're quarter in third-party that at increases And the to. look -- increases forecasted here is have that's there second When you referring our because what growth point we servicing things. or expense We forgiveness combination actually two the well fees Protection Program associated expenses, an it's in a as Paycheck have process did processing as the loans. third-party of with

at when less varies. these X% loan servicing on portfolios, than these expense the portfolios. so, generally, you But look it's And

it that agree very much You I deploy that as with competitive very only competitive, you look to and liquidity. people market will exactly more more right are it's a get

And very mindful of so, compression. we're spread

shareholder liquidity in costs see of with right the benefits on expect just just balance make this actually leveraging it add compression reduce prior and Obviously environment, with to spread remain purchases mix line these to the side to the to sheet, conversation there. we're diligent optimize that the value. deposit we'll the We of sure

not find do to it's a we believe right that deploy thing we're compelled we we can the in shareholder. prudent the believe because will the found past But assets And that's that like so, we to we way grow assets. the continue pursue liquidity. believe that if for We to

Brody Preston

it. Got

of X% about little third-party perhaps of bit is that equation PPP guess should it? I I So that of once servicing think the how portfolio kind a out become clearer. that's

Jamie Gregory

right. That's Yes.

Brody Preston

follow-up core my be banking on just guess I would the then And fees. Okay.

it's loaded nice rolled is because a little of wanted harder here. specific a if that ask growth take for goes more on you rid point become industry. NSF look little a of just is mentioned getting be just But question willing to you of from that step-up what questions you've the to there's Other use it, cases seems bit about the I to And And I that that's a focal this a CFPB So it. there? driving talk out? then guess the The products what are bit into the banks new analysis, within could maybe are little question. you bit account the a saw the

just have it as how the thought percent low getting especially given given a you've traction to of is it revenues you other in maybe Just seen nice of given any rid areas. your

Kevin Blair

Yes.

banking is we're largely the basis a up is at those the that year-over-year. up core on account fees. offering XX% were So, on -- the function of take one analysis noted Kevin. And Brody this it look categories When services of you customers. our the treasury quarter-over-quarter I'll X%, you

that percentage what was lead fairly us for it's increase that that calls well pricing increase we that our have meaningful. you to in there that favorable whether or a increase the turnover that of news negotiate is And in value-added try customers that question going had advice by to is few doing that time we're problem. from to And value. the increase repricing tells response from We customers. comes a fee. you of a saw good mentioned Jamie large fees, was Some the a to received very Any perspective it

those for pay services. to willing they're so And

a of sales customers solution to the increase part the is year-over-year. number the -- amount -- in that our that's of new existing just also we're The activity in new or of product solutions. XX% the providing up it's that other And the are whether

success So, tool to be based XX% solutions are which those our offering able just outside that customers increase, that and request about we continuing of to grow we're treasury our the relationship to is to And and smart line opportunities. deepen continue to that our story. a are leads analytics additional so of on pricing insights expect

our bankers to so are those. And work starting

that purchasing to in of and to commercial this But we've other and able that XX% more as quarter inside and We area banking and up card starting customers' our that also core up fees card some show card and increased we're in last up get spend. in that's fees commercial versus first XX% year. was that's was made in just were about cards hands. investments our an The quarter versus

And a story. success so that's

from were mentioned from that's down to about it income We're X% overdraft we and XX% derived only that As relates our XXXX. about you it. is fee where of NSFOD in

example solutions the banking of funds a options. of our bank we're provide to their today. customers provide checking on strategy that some we we quarter talking feel that are looking for of our fourth as any of that next options importantly million offer But to opportunity some some some competitors income access so customers card And today think our It's product and relates of mentioned that and it as the evaluating your payment our $XX we And without earlier where we businesses about. a that We securities our business changes or million we've it our we're in overdraft the fact the fiduciary will and account where new brokerage on to own And to embarked variety will feel our that a we there's But our that do the as functionality $XX tools to allows this there. area digital specifically add new overdrafts. do growing well assistance of some and where optimization allowing in prepaid involve that more are any considering to treasury many standard losses free year first Jamie offset most that see solutions. and about that like But and have which you an we'll I is quarter some and represents early education. we point year.

reductions suite. other those time product over able growth from categories So, be think in to a will any we larger we the have new offset

Brody Preston

taking Thank my it. appreciate questions. Got you much very for I it.

Kevin Blair

you. Thank

Operator

go the from Capital. And last question come ahead. will Duong Steven Please RBC with

Steven Duong

Hi, good morning, everyone.

Kevin Blair

Good morning.

Steven Duong

Just a continue question that acceleration of you expect the some in industries quarter. for on seeing us on color the what growth give you're growth? C&I or areas Can year? you the end the And where the to do

Kevin Blair

We still We've that Ultimately, based an that seen and the earlier financial and pipeline our and areas care logistics from in based discussions So, year do having and getting to retail is the X XX% transportation markets, Steven services on health that's seen production, the some with we're industry trade markets we're that but the most of growth as construction we're from our had represented our seeing our continue at markets standpoint large I the Tier metro market. coming I positioned. share XX%. if you of at think is our our you're rural and of XX% lion's about MSAs it Tier look which last growth for looked our And the about our on some production the about of activity out where were expect our rest of I area. of we quarter just mentioned growth only insurance growth. largest customers. markets this X we've well are smaller

as and the South mentioned, some in of and markets our So industries from as well think South a those we the medium-tier like Atlanta think we C&I we'll Charleston markets Carolina, second half grow I've opportunity year. like tremendous Florida and Greenville, and Columbia, strongly there's

Steven Duong

PPP, if environment lower? rate to of appreciate then do to the where that They a trickle the you you the that yields. at Kevin. out in loan you the it to I And just if commercial out would $XXX were and And be? where guess is, a on follow-up that million. little year were Great. remains I strip color expect just impact look came one

Kevin Blair

the about that fees, So our came at way at excluding on second $XXX on on that look I coupon the the if to million yes, I the as books we around look quarter, production is loans today $XXX it brought And in look portfolio $XXX Steven, million. you look our in million. all our rate at

it on of say you're million. putting So that let's midpoint $XXX

portfolio. pressure renewals be based on on as will there origination that to repricing So new continued side overall the put on pressure as well the will continue loan

news the in is Now were quarter. good flat second those quarter with coupons first

actually So feel small cost coupon. both starting spread, new we at of and And funds, is large seeing widening credit at we've you normalize. that our look from we when the that like price to the spread we are and when banks competition our look been

there pressure continue to So earlier, the cut it margins mentioned stabilize. our we'll to impact to is help going continue our that's costs leverage side and where as and mitigate to liability any to provide to keep Jamie

Steven Duong

guys. Great. Appreciate coloring the that

Operator

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

Kevin Blair

interest for in I today, your your And your operator. Synovus. and participation to want you, questions everybody ongoing Thank thank

organization humbled these Synovus, driven or goals my who day Although, represent clients financial call participating -- and every represent this CEO month at is company with lead my team aspirations. a in earnings next to the passionate are and to working fifth month as such I'm will help and great calls. of achieve this first this their will our year members

like so We of your this on proud have with this contributions. a thank your lot who team call and our members our of year, things be I'd to for efforts are to performance

through in the arisen have the pandemic as the managing that As today's effectively are to report, side. headwinds other get we you've heard and we

in to believers than quarter commitments continued also and continuing of that But also eager growth our we to continue opportunities. We're expanding speak completed By that While to we competitors, and I relationships actions generate louder profitability. to to the in big words future we we to win. from our our weeks another know and have share delivering on our quarters well we're new and our have and strategy leverage progress business for to and are deliver extremely our on and take believe report our of in and sources successes to share existing and positioned plan ability our invest momentum ahead.

attendance great for again thank and I your day. you a today hope So have you

Operator

conference Thank you. The has concluded.

lines. your disconnect You may now

Synovus Financial (SNV) 20 Jul 212021 Q2 Earnings call transcript