Synovus Financial (SNV) Bank of America Securities Financial Services Conference summary

Macro and business outlook

• Exiting 2024, committed C&I and CRE production reached an eight-quarter high, with client optimism at its highest in years, driven by strong consumer sentiment and increased pipelines, up 20% year over year.

• Labor market strength in the Southeast is supported by significant population inflows, with 80% of surveyed clients maintaining or increasing headcount, though access to labor remains a key concern.

• Loan growth guidance for 2025 is 3%-6%, with higher production, normalized line utilization, and reduced payoff activity as key drivers for reaching the upper end of the range.

• Price competition is expected to intensify as liquidity and capital positions remain strong across the industry, with loan growth anticipated to accelerate through the year.

Balance sheet, margin, and deposit strategy

• Net interest margin (NIM) is expected to expand, with the balance sheet positioned neutrally to the front of the curve and some asset sensitivity to the five-year part.

• Deposit costs are set to decline further as CDs reprice, with current deposit betas at 42%, ahead of expectations due to effective cost management.

• The bank maintains a middle-of-the-pack strategy on deposit pricing, focusing on core deposit and loan growth without aggressively leading on time deposit rates.

Growth initiatives and operational strategy

• Synovus Go marks a shift to a growth orientation, emphasizing internal connectivity, proactive sales, and clear metrics for winning, supported by low turnover and high engagement.

• The operating model is designed to attract talent from larger banks by offering robust technology, streamlined processes, and a client-centric approach, with recent net additions in middle market and community banking.

• Efficiency gains are expected from technology, AI, and process improvements, with ongoing expense management and strategic investments projected to yield operating leverage in future years.