Synovus Financial (SNV) Goldman Sachs 2024 U.S. Financial Services Conference summary

Strategic transformation and positioning

• Transitioned from 29 community banks to a unified regional model, enhancing client experience and risk resilience.

• Completed multi-year transformation including charter consolidation, technology investments, and expansion into new markets and business lines from 2010 to 2023.

• Built a diversified revenue stream and business model, targeting both commercial and consumer clients, with significant contributions from wholesale, community, and consumer banking, as well as treasury, payment solutions, and wealth management.

• Benefiting from Southeast demographic trends and economic tailwinds, with population and income growth outpacing national averages and strong projections through 2030.

• Launched new business segments such as Wholesale Bank, Corporate & Investment Banking, and expanded commercial sponsorships.

Growth strategy and operational focus

• Shifting from a defensive to an offensive growth posture, emphasizing loan and deposit growth, with a target of 3%-6% annual growth in both loans and deposits for 2025.

• Strategic focus on middle market, specialty lending, and CIB, with relationship manager headcount to expand 20-30% over three years in key growth markets.

• Incremental hiring of relationship managers in key segments, aiming for quick payback and significant new business generation.

• Expanding specialty lending and financial services teams to drive incremental revenue and loan growth, with structured lending and CIB FIG verticals expected to deliver high incremental returns.

• Investments in technology and talent expected to yield outsized growth in 2026-2028.

Financial outlook and risk management

• Revenue and expense growth both guided at 3%-7% for 2025, with flexibility to adjust investments based on performance and expense growth allocated to inflationary impacts, technology/compliance, and strategic investments, partially offset by efficiency gains.

• Net interest margin expected to benefit from a steepening yield curve and effective deposit repricing.

• Non-interest revenue projected at $500M-$520M in 2025, driven by Treasury, Payment Solutions, Wealth, and Capital Markets initiatives.

• Credit quality remains stable, with charge-offs expected in the 25-35 basis point range and no systemic concerns; allowance for credit losses increased by 11 bps since 3Q22.

• Capital levels at a nine-year high, CET1 ratio up 112 bps since 3Q22, and flexibility to toggle between share repurchases and loan growth as needed.