Synovus Financial Corp Q2 2020 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Rahul Suresh Patil - Evercore ISI Institutional Equities, Research Division - Analyst : This is Rahul Patil on behalf of John. Just had a question on the reserve. How much of that $650 million reserve is allocated to the CRE portfolio? And how much of the reserve was released tied to the student and the GreenSky loans moved to held for sale?

Question: Rahul Suresh Patil - Evercore ISI Institutional Equities, Research Division - Analyst : Yes. How much of the total reserve is allocated to the CRE portfolio?

Question: Rahul Suresh Patil - Evercore ISI Institutional Equities, Research Division - Analyst : Okay. And then just one question on expenses, just thinking about it a little differently. So the adjusted efficiency ratio has hovered around 57% to 58% in the first half of this year. In the past, you've talked about a longer-term efficiency target of probably in the low to mid-50% range. You obviously have the revenue and expense initiatives ongoing. When do you expect to reach that level in terms of efficiency ratio? Or do you have like an updated target for us?

Question: Garrett Anthony Holland - Robert W. Baird & Co. Incorporated, Research Division - Analyst : I appreciate all the detail this morning. Just a follow-up on that last one, Jamie. There's clearly a number of moving pieces with P3 fees, excess liquidity and the deposit repricing opportunity. How do you expect NII, excluding P3 fees, to trend over the back half of the year? And where do you think it's stable items?

Question: Garrett Anthony Holland - Robert W. Baird & Co. Incorporated, Research Division - Analyst : That's helpful. And then just quickly, I guess what pressure does the pandemic operating backdrop put on the timing for Synovus Forward benefits? Clearly, there's better visibility for the third-party expense and real estate savings. But do you feel good about your flexibility to increase those expense synergies if the revenue benefits don't materialize?

Question: Tu Duong - RBC Capital Markets, Research Division - Analyst : Just on the capital degradation under your stress test, the 2.3%. So if that was to occur, that would take your CET1 to say the low to mid-7%. If you were to assume that you -- to build the CET1 next few quarters, is that a range that you guys would be willing -- you want to still keep the dividend if it got to, say, around a 7.5% level?

Question: Tu Duong - RBC Capital Markets, Research Division - Analyst : No, that was -- I mean, it's really great to see this quarter that the amount of capital you guys were able to generate. And then just a follow-up to that. After we get through this credit cycle, we are in a really first-of-a-kind interest rate environment. I guess, how does -- how are you guys thinking about the future margin and your PPNR and able to maintain your dividend based on that? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JULY 21, 2020 / 12:30PM, SNV.N - Q2 2020 Synovus Financial Corp Earnings Call