Synovus Financial Corp at Bank of America Financial Services Conference Transcript

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

Question: Ebrahim Poonawala - Bank of America Merrill Lynch - Analyst : Maybe I guess just continuing on the conversation we were having. I think let's start with the macro outlook and how you view the world differently today versus a year ago and there are lots of macro cost currents, but just give us a sense of optimism that you have for your business and for Synovus and what you're hearing from your clients.

Question: Ebrahim Poonawala - Bank of America Merrill Lynch - Analyst : Tied to consumer spending in the job market, just give us a sense. I mean you saw jobs data came out last week, some revisions to last year which were meaningful to the downside. How do you characterize the strength of the job market across your markets? Are your clients generally hiring versus firing?

Question: Ebrahim Poonawala - Bank of America Merrill Lynch - Analyst : So I guess maybe let's talk about. What all of this means for growth, right, so very strong markets. You just talked about it. Pipelines are strong. I mean I think the loan growth guidance was 3% to 6% relatively wide as we think about what gets 3% to 6% versus 3%, just give us remind us of the puts and takes.

Question: Ebrahim Poonawala - Bank of America Merrill Lynch - Analyst : And just going back to the macro and you mentioned the tariffs earlier. Again, early days in terms of 2025, but when you think about those pipelines actually translating into growth, is the macro do we have enough policy certainty where your customers are borrowing, or are we still in wait and watch mode?

Question: Ebrahim Poonawala - Bank of America Merrill Lynch - Analyst : And I guess maybe sticking with loan growth and spread revenue, you talked about net and margin expanding from your Remind us the positioning of the balance sheet. It seems that the Fed may be on pause for the rest of the year. What that means in terms of the margin outlook, if the Fed doesn't do anything, is that a good or a bad thing? And then I'll follow up with the next one if.

Question: Ebrahim Poonawala - Bank of America Merrill Lynch - Analyst : And I guess the one side of the equation there is deposit bearers. Remind us how that's played out relative to your expectations and how much more runway do we have in terms of flexing deposit costs lower.

Question: Ebrahim Poonawala - Bank of America Merrill Lynch - Analyst : And just maybe talk a little bit about what the market looks like. Are there certain geography where competition like you're a market where there are a lot of new entrants. Like what does that mean for synovas? Does it impacting and influencing how you're pricing deposits in order to defend stuff?

Question: Ebrahim Poonawala - Bank of America Merrill Lynch - Analyst : Maybe just switching gears back to Synovus's go. I think you talked about it. Yes sir, you've done a good job in terms of some of these initiatives over the years under your leadership. Just talk maybe Kevin, Synovus go, why now is the right time and what are we looking to achieve with it?

Question: Ebrahim Poonawala - Bank of America Merrill Lynch - Analyst : I just sticking with winning, I guess talk to us around the hiring of talent or pitching for business like what sets slows apart from either the large national banks or another regional bank that's coming into your market, what that means from a practical standpoint.

Question: Ebrahim Poonawala - Bank of America Merrill Lynch - Analyst : And he talked about investments means. You've been on an efficiency drive, I would think for as long as I can remember now. Just when you think about the expense growth outlook, all the hiring, are there still opportunities at the bank in terms of extracting efficiencies and like how does that offset organic growth?

Question: Ebrahim Poonawala - Bank of America Merrill Lynch - Analyst : It looks like that gives you enough flex over the next few years to manage expenses without having a big negative sort of surprise.

Question: Ebrahim Poonawala - Bank of America Merrill Lynch - Analyst : But we hit upon like two or three different growth initiatives. One, just from a market standpoint, remind us in terms of your outlook for the Florida franchise. With the banking wealth, like where does that stand, and are there other markets within the geography that you're particularly excited about?

Question: Ebrahim Poonawala - Bank of America Merrill Lynch - Analyst : But I guess the other area where you've focused on has been the CIB capital markets business. Maybe Give us a status check on where that stands. What's how what's your outlook for that and.

Question: Ebrahim Poonawala - Bank of America Merrill Lynch - Analyst : Any other fee categories where you're particularly excited treasury management mortgage. I'm just wondering.

Question: Ebrahim Poonawala - Bank of America Merrill Lynch - Analyst : And this, if you don't mind spending some time on the green sky relationship, I mean, generally what we've seen over the last few years is banks are optimizing their balance sheets, how they use what a big focus on deposit relationships or having a holistic relationship with customers. Just tell us how GreenSky fits in. Within that framework. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 11, 2025 / 5:10PM, SNV.N - Synovus Financial Corp at Bank of America Financial Services Conference

Question: Ebrahim Poonawala - Bank of America Merrill Lynch - Analyst : Just talking about partnering, I think the others. The other thing that you're discussing or it's coming up a lot in terms of banks' origination capabilities married with private credit, direct lender, so one, I think, are they a serious competitive sort of threat to your business from a day to day standpoint, and are they partnering opportunities where you originating and passing on an asset that may not belong on the balance sheet?

Question: Ebrahim Poonawala - Bank of America Merrill Lynch - Analyst : And you mention regulations. Obviously, there's a fair amount of optimism around a return to a more balanced, predictable regulatory backdrop for the banks. Do you share that view, number one, and second, in what aspects can synovas actually see tangible relief? Yeah, either the regulations or supervisory.

Question: Ebrahim Poonawala - Bank of America Merrill Lynch - Analyst : But maybe just spend some time on capital management, I think the $400 million buyback authorization. You grew capital last year despite buying backs stock. Just remind us capital deployment priorities, where you're managing capital to, and how quickly can you do you plan to execute on those buybacks.

Question: Ebrahim Poonawala - Bank of America Merrill Lynch - Analyst : And I guess one last question just around. You shared an interesting anecdote at a conference you were on bank M&A, but give us a sense of you've done one deal in the last several years on banks, which is meaningful in size. So in a world where the regulatory backdrop is a little more conducive to get deals approved, et cetera. Like how attractive is that as a strategic option for Synovus?

Question: Ebrahim Poonawala - Bank of America Merrill Lynch - Analyst : It's a good way to think about it. Jamie, Kevin, thank you so much for your time. Thank you.