Synovus Financial (SNV) Barclays 23rd Annual Global Financial Services Conference summary

Strategic priorities and transformation

• Reinforcing commitment to transformation, focusing on team engagement and client loyalty to drive value.

• Launched new brand campaign and expanded middle market banker team, achieving 8% annualized loan growth in targeted segments in 1H24.

• Achieved high rankings in J.D. Power and Greenwich Awards, aiming to normalize growth in the Southeast and received 25 Greenwich awards for 2023 performance.

• Reducing risk profile, especially in credit, with Q3 charge-offs expected at 25-35 bps, lower than earlier in the year.

• Non-interest expense decreased 1% YTD, with a 7% YoY reduction in FTEs and fraud/operating losses down 11% YTD.

Loan growth and balance sheet optimization

• Loan production up 50% QoQ in Q2, but still 10% below prior year; pipelines up 8% entering Q3.

• Strategic reduction in senior housing and shared national credits, with $650M headwind from optimization and utilization.

• Anticipates loan growth to pick up in late 2024 as headwinds subside and productivity improves.

• Long-term goal is to grow 100-200 bps above market, with commercial and specialty lending segments showing strong growth.

• 3Q24 guidance anticipates flat loan growth, ~1% core deposit growth, adjusted revenue of $555–560M, and stable CET1 ratio at ~10.6%.

Market dynamics and competitive positioning

• Southeast markets growing faster than national average, but competition remains intense with many new entrants.

• Growth strategy focuses on increasing talent density, expanding product offerings, and deepening client relationships within existing footprint.

• Operates a diversified model across wholesale, corporate & investment, community, and consumer banking, with significant non-interest revenue streams.

• Key markets include major economic hubs in the Southeast, benefiting from strong demographic and business trends.

• Maintains a strong corporate culture, recognized with multiple industry awards and high employee engagement.