Financial Data and Key Metrics Changes - The company reported a return on tangible common equity of 18% and a return on assets (ROA) of nearly 1.3% with overall revenue growth of 1.6% quarter-over-quarter [6][18] - The common equity Tier one ratio increased, and the loan to deposit ratio remained flat at 81% [7][18] - The tangible book value per common share grew to $35.13, up over 3% from the previous quarter [18][26] Business Line Data and Key Metrics Changes - Total loans increased by $616 million or 1.2% linked quarter, with a notable one-time transfer of $242 million of loans to held for sale [19] - Total deposits grew by $739 million, with deposit costs up three basis points due to seasonal mix shifts [20] - Non-interest income was $95 million, reflecting a modest increase driven by growth in deposit service fees [23] Market Data and Key Metrics Changes - The company noted no new pockets of credit deterioration across industries, maintaining a strong operating position [9] - The Healthcare Financial Services segment is expected to see significant growth due to favorable provisions in recent legislation, potentially adding $1 billion to $2.5 billion in deposits over five years [13][14] Company Strategy and Development Direction - The company is focused on organic growth, tuck-in acquisitions, and enhancing its healthcare services vertical [30][50] - The asset management partnership with Marathon is expected to enhance loan growth and drive fee revenue starting in 2026 [11][15] - The company aims to maintain a disciplined approach to capital management, prioritizing growth and shareholder returns [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a less certain macroeconomic environment and highlighted the potential for loan growth to accelerate [6][28] - The company anticipates that regulatory changes will strengthen the competitive position of U.S. banks [29] - Management remains vigilant regarding credit quality, with expectations for continued improvement in credit metrics [80] Other Important Information - The company announced the addition of Jason Schugel as Chief Risk Officer and Fred Crawford as a new Board member [30] - The company is preparing to cross $100 billion in assets, with significant investments in technology and operations [24] Q&A Session Summary Question: Capital and Buyback Strategy - Management indicated a willingness to reduce the CET1 ratio over time while maintaining a target of 11% for the near term, with potential buybacks in the second half of the year [35][37][39] Question: NIM Outlook and Debt Issuance - Management confirmed that cash balances are at desired levels, with a minor impact on NIM expected from cash build and upcoming debt issuance [42][43] Question: Deposit Costs and Growth - Management expects deposit costs to decrease with potential rate cuts, but competition may limit significant reductions [45][46] Question: HSA Market Expansion - Management noted that no major changes in expenses are anticipated for HSA, but marketing investments will be necessary to educate new consumers [56][59] Question: Credit Quality Metrics - Management expressed cautious optimism about credit quality improvements, emphasizing stability in risk ratings and no new problem areas [80][81] Question: Commercial and Industrial Originations - Management reported strong originations across all categories, with expectations for continued growth in the second half of the year [66][68] Question: Rent-Regulated Buildings Impact - Management indicated limited exposure to rent-regulated buildings, with a well-seasoned portfolio and good credit stats [72][75] Question: Non-Interest Bearing Deposits - Management noted a recent uptick in non-interest bearing deposits, with expectations for mild growth in the second half of the year [88][90] Question: HSA Provisions and Market Size - Management highlighted that the majority of the deposit growth opportunity stems from new eligibility for HSA accounts under recent legislation [91][93]

Financial Data and Key Metrics Changes - Synovus reported GAAP and adjusted earnings per share of $1.48, with adjusted earnings per share increasing 14% from the first quarter and 28% year over year [5] - Adjusted pre-provision net revenue rose 5% sequentially and grew 7% from the second quarter of 2024 [5] - Net interest margin expanded modestly, contributing to a 6% year-over-year net interest income growth in the second quarter [10][15] - Capital ratios improved, with the preliminary common equity Tier one ratio at 10.91%, the highest in the company's history [15][22] Business Line Data and Key Metrics Changes - Loan growth was strong and broad-based, with total loan production increasing 34% quarter over quarter and 60% year over year [11][12] - Specialty lending rose by $353 million sequentially, driven by growth in structured lending and restaurant services lending [11] - Core deposits declined by $788 million or 2% from the first quarter, primarily due to a drop in public funds and time deposits [12] Market Data and Key Metrics Changes - Synovus had the sixth highest Net Promoter Score among the largest 50 banks, with the largest year-over-year increase in this group [7] - Client surveys indicated general optimism for future business growth despite concerns regarding government fiscal and trade policy actions [7] Company Strategy and Development Direction - The company is focused on executing its 2025 strategic initiatives, including the accelerated hiring of relationship managers, with 12 new commercial bankers added in the second quarter [6][19] - Synovus aims to maintain a balanced approach to expense management while investing in areas that deliver long-term shareholder value [20] - The company expects to target loan growth rather than share repurchases, indicating a preference for deploying capital towards growth opportunities [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued loan growth, with pipelines expected to be 14% higher entering the third quarter [32] - The credit loss environment is anticipated to remain stable, with net charge-offs expected to be relatively stable compared to the first half of the year [21] - The company has raised its 2025 net interest income and noninterest revenue outlook while maintaining noninterest expense guidance [22] Other Important Information - The tax rate was approximately 21% in the second quarter, with expectations for the full year to be between 21-22% [22] - The company is actively monitoring economic uncertainties and adjusting its credit loss reserves accordingly [75] Q&A Session Summary Question: Can you talk about the change in sentiment from borrowers? - Management noted that loan growth was driven by hard work and a strong team, with production and pipelines up about 10% entering the second quarter [27][30] Question: What are your expectations for deposit growth? - Management indicated that the decline in deposits was strategic, leading to margin expansion, and they expect core deposit growth in the second half of the year [34][38] Question: How is the competitive landscape affecting pricing? - Management acknowledged ongoing competition for loans and deposits, with modest pricing pressure observed [42][44] Question: Can you elaborate on the decision to add to reserves? - The increase in reserves was driven by economic uncertainty, particularly changes in unemployment rates, despite improvements in the loan portfolio [72][74] Question: What is the outlook for capital allocation? - Management emphasized a preference for loan growth over share repurchases, maintaining a strong capital position [76][77]

Financial Data and Key Metrics Changes - The company reported a net operating profit of $29 million or $0.54 per share for the quarter, with pretax pre-provision earnings at $43.4 million or 1.41% [4] - Total loans decreased by $125 million or 5% annualized, while average balances were down $135 million compared to Q4 [5] - The tangible book value per share increased to $22.33, up from $21.61 at year-end, marking a 13.8% year-over-year increase [16] - The net interest margin (NIM) increased by 11 basis points to 3.31% [25] Business Line Data and Key Metrics Changes - Gross loan production for Q1 was $750 million, with only 31% or $237 million funded [6] - Operating non-interest income increased by 2.4% to $14.8 million on a linked quarter basis, with fee income as a percentage of total revenue rising to 13.4% [29] - Operating non-interest expense declined by $2.8 million for the quarter, leading to an operating efficiency ratio of 60.4% [30] Market Data and Key Metrics Changes - The company moved out over $440 million in wholesale funding during the quarter, reducing reliance on higher-cost deposits [7] - The loan-to-deposit ratio decreased from 104% to 89% over the last two years, with a target to remain below 90% going forward [12][22] Company Strategy and Development Direction - The company aims to achieve a return on assets (ROA) exceeding 1% in the latter half of the year, focusing on disciplined loan growth despite current challenges [5] - The bank plans to continue reducing reliance on unattractively priced deposits and is actively managing its capital and liquidity [14][31] - The company has increased its quarterly dividend by 10% to $0.22 per share, reflecting confidence in its growth outlook and capital generation [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future loan growth, citing a significant increase in loan production over the past year, which is expected to translate into growth in 2026 and beyond [20][42] - The management acknowledged the challenges posed by economic uncertainties, including tariffs and interest rates, but remains committed to delivering value to shareholders [33] - The company is focused on maintaining a conservative allowance for credit losses, with 65% of the weighting on downside scenarios in its economic modeling [18] Other Important Information - The company repurchased 377,000 shares during the quarter, with $37 million remaining on the authorization for further buybacks [17] - Nonperforming assets increased from $79 million at year-end to $97 million, primarily due to two loans in retail and office sectors [10] Q&A Session Summary Question: What is the outlook for deposits and their stickiness? - Management noted that some deposit fluctuations are seasonal, with good work by banking teams contributing to core deposit growth [35] Question: What are the expectations for expenses moving forward? - Management indicated that while expenses are expected to rise slightly due to new hires, there is a strong focus on managing overall costs [37][40] Question: What is the updated outlook for loan growth? - Management anticipates flat loan growth for the year, with potential for improvement in the second half based on pipeline strength [42][43] Question: How does the company view the government-guaranteed business? - Management remains bullish on the government-guaranteed business, expecting it to outperform in the latter half of the year [70][78] Question: What is the strategy regarding the securities portfolio and reinvestment? - The company is currently using cash flows to pay down wholesale funding but will become more active in investments once loan growth picks up [106] Question: What is the outlook for credit trends and non-accrual loans? - Management expressed confidence in managing non-accrual loans, with strategies in place to resolve them by early third quarter [117]

Financial Data and Key Metrics Changes - The company reported a net income of $6 million for Q4, translating to $0.38 per share, which is an increase from the prior quarter [9] - Net interest income rose by 4% from the previous quarter to $25.2 million, driven by a 10 basis point increase in the net interest margin [9][10] - The total risk-based capital ratio increased to 16.5% and the tangible common equity (TCE) ratio stood at 9.93% [8] Business Line Data and Key Metrics Changes - Loan originations for the quarter totaled $54 million, with outstanding balances at $47 million, showing a diversified mix of commercial and commercial real estate loans [6] - Non-accrual loans and classified loans both declined due to paydowns, with no new issues emerging [5][12] - The average yield on loans increased by 9 basis points during Q4, with expectations for continued improvements in the coming quarters [10] Market Data and Key Metrics Changes - The company experienced a decline in total deposits to $3.2 billion at the end of Q4, attributed to seasonal outflows typical for the quarter [11] - Non-interest bearing deposits remained high at 43% of total deposits, reflecting the strength of the relationship banking model [8] Company Strategy and Development Direction - The company aims to capitalize on improved economic conditions and loan demand, with a strong pipeline of diversified opportunities across markets and industries [14][15] - Investments in technology are expected to enhance efficiency and client service, contributing to revenue growth and profitability [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the financial performance in 2025, citing strong capital and liquidity positions [14] - The company is focused on organic growth while remaining open to opportunistic acquisitions, emphasizing the importance of maintaining a disciplined approach to underwriting and pricing [78][102] Other Important Information - The company declared a cash dividend of $0.25 per share, marking the 79th consecutive quarterly dividend [13] - The transition to a new CFO was highlighted, with management expressing confidence in the continuity of operations [19] Q&A Session Summary Question: Comments on margin and asset repricing opportunities - Management indicated an expected improvement in net interest margin (NIM) due to loan repricing and deposit rate adjustments [28][34] Question: Loan growth pipeline and payoff clarity - The pipeline for Q1 is reported to be 40% higher than the previous year, with expectations for originations to outpace payoffs [36][37] Question: Seasonal dynamics in deposits - Seasonal fluctuations were noted as the primary reason for deposit changes, with proactive efforts to reduce deposit costs showing minimal attrition [81] Question: Capital deployment opportunities - Management discussed various capital deployment strategies, including securities repositioning and potential M&A, while emphasizing a preference for organic growth [86][102]