Synovus Financial Corp.

Good morning and welcome to the Synovus Fast Quarter 2023 Earnings School. My name is Adam and I'll be your operator today. All participants will be in a listen-only mode. Should you need assistance, please signal your conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, please press star followed by one on your touch-tone phone. To withdraw your question, please press star followed by two. Please note, this event is being recorded. I will now turn the call over to Carol Evans, Head of Investor Relations, to begin, so please go ahead when you are ready.

Thank you and good morning. During today's call, we will reference the slides and press release that are available within the Investor Relations section of our website, synovus.com. Chairman, CEO, and President Kevin Blair will begin the call. He will be followed by Jamie Gregory, Chief Financial Officer, and they will be available to answer your questions at the end of the call. Our comments include forward-looking statements. These statements are subject to risks and uncertainties and the actual results could vary materially. We list these factors that might cause results to differ materially in our press release and in our SEC filings, which are available on our website. We do not assume any obligation to update any forward-looking statements because of new information, early developments, or otherwise, except as may be required by law. During the call, we will reference non-GAAP financial measures related to the company's performance. You may see the reconciliation of these measures in the appendix to our presentation. And now, Kevin Blair will provide an overview of the quarter.

Thank you, Cal. Good morning, everyone, and thank you for joining our first quarter 2023 earnings call. This last quarter has proven to be a challenging operating environment for the banking industry. However, once again, we have seen the value and viability of Main Street banks like ours, who operate on a relationship-based client model. Despite the media narrative that deposit outflows were rampant in regional banks, our core deposit balances were up in the first quarter and stable in the month of March, a testament to the value of our client base and our team members who serve as trusted advisors in both good and challenging times. We have a long and proven track record of success. In recent years, we've taken a deliberate approach to expanding our business, diversifying our client base, and leveraging technology and new solutions to improve the client experience and deepen our share of wallet. But we have never lost sight of the value of building strong, trusted client relationships. Trust is a two-way street and is often tested during times of stress. This last quarter serves as an added proof point of the importance of client loyalty and the engagement of team member base that was instrumental in efficiently executing a multifaceted response to the turbulence in our industry. As a result of our team members' efforts, we're pleased to report strong financial results for the first quarter, with net income up 19% year over year. We also received industry-wide recognition, including ranking number one for customer satisfaction and trust in the Southeast, according to J.D. Power's most recent U.S. Retail Banking Satisfaction Study, and received 20 Greenwich Excellence and Best Brand awards for small business and middle market banking. While we're proud of these results, we're mindful of the challenges and uncertainties, but also the opportunities that lie ahead. The recent bank failures and industry-wide pressures on liquidity serve as a reminder of the importance of strong deposit production, maintaining a strong capital position, managing risk carefully, and remaining vigilant in an ever-changing regulatory environment. We increased our core deposit production significantly this quarter, but also fortified our liquidity position out of abundance of caution through the addition of broker deposits and FHOB borrowings, and we currently maintain over $25 billion in incremental contingent liquidity. Also, we continue to accrete capital consistent with our strategy over the last several quarters. Finally, in the middle of the market upheaval seen in March, we kept our eye on the ball and continued to execute our strategic plan in a cost-effective manner that provides the maximum value for our shareholders. One noteworthy event was the regulatory approval of the QualPay investment, which is a supporting component in the delivery of our banking as a service platform. This quarter's results reinforced the strength of our balance sheet with growth in deposits, cash balances, as well as other contingent sources of liquidity. Moreover, our AOCI improved, net charge-offs remained at historically low levels, and we grew our tangible book value per share. Before we transition to the next slide and our financial highlights, I would like to thank our entire team for their tireless efforts since early March and thank our clients for the trust you continue to place in us. Now let's move to slide four for the quarterly financial highlights. Net income available to common shareholders and EPS were up 19% and 21 cents respectively year over year. Strong earnings growth was supported by 23% year over year growth in NII and 19% growth from core client fee income. This revenue growth combined with year over year positive operating leverage led to strong performance metrics with ROATCE of 21.9%, return on average assets of 1.36%, and an efficiency ratio of 52.3%. Loans increased 329 million or 1% quarter over quarter. Core commercial loans again served as the primary driver of growth offset by runoff of third party consumer loans and a previously disclosed move of third party loans to held for sale. Loan growth X third parties moved to held for sale was $753 million or 2% quarter over quarter. Overall deposits grew 2% quarter over quarter, including growth in core deposits of $133 million. Core deposits remained stable through the month of March, and we saw minimal outflows related to the industry narratives. Our deposit origination engine remained strong, as we once again saw record levels of deposit production. Despite headwinds associated with non-interest-bearing deposit remixing and higher costs associated with core interest-bearing deposits, Deposit rates have tracked reasonably in line with our expectations, though current dynamics are presenting some upward pressures relative to our previously guided range. Our underlying credit performance remains strong, and while we are seeing movement away from historically low levels, we have not seen a meaningful change in the underlying performance of our borrower base. Our positive portfolio performance is reflected in continued low levels of charge-offs, as well as our other performance metrics, such as delinquencies, and non-performing ratios. The ACL ratio increased slightly this quarter, predominantly due to higher weightings to downside economic scenarios. Lastly, CET1 grew to 9.76%, a result of strong organic capital generation and our decision to continue to retain and grow capital in this uncertain environment. Now I'll turn it over to Jamie to continue the overview of our quarterly results in greater detail. Jamie?