Q3 2025 Synovus Financial Corp Earnings Call

First by pressing the star key followed by zero.

After today's presentation there'll be an opportunity to ask questions to ask a question you May Press Star then one on your Touchtone phone to withdraw your question. Please press Star then two.

The call today will be limited to approximately one hour. Please note. This event is being recorded.

I will now turn the call over to Jennifer <unk> Senior Director Investor Relations.

Please go ahead.

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 <unk> Dot com.

Chairman CEO and President Kevin Blair will begin the call. He will be followed by Jamie Gregory Executive Vice President and 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 fac.

<unk> 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 Companys 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 Jennifer Synovus reported strong third quarter 2025, GAAP earnings per share of $1 33.

Speaker #1: Good morning and welcome to the Synovus third quarter 2025 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Operator: Good morning and welcome to the Synovus Financial Corp. third quarter 2025 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there'll be an opportunity to ask questions. To ask a question, you may press star, then one on your touch-tone phone. To withdraw your question, please press star, then two. The call today will be limited to approximately one hour. Please note this event is being recorded. I will now turn the call over to Jennifer Demba, Senior Director of Investor Relations. Please go ahead.

And adjusted earnings per share of $1 46 up 19% year over year.

Adjusted <unk> growth was also quite healthy up 5% sequentially and 12% from the third quarter 2024.

Speaker #1: After today's presentation, there'll be an opportunity to ask questions. To ask a question, you may press star and one on your touchtone phone. To withdraw your question, please press star and two.

Our year over year earnings growth was primarily attributable to lenders margin expansion healthy noninterest revenue growth and lower provision for credit losses.

Speaker #1: The call today will be limited to approximately one hour. Please note this event is being recorded. I will now turn the call over to Jennifer Demba, Senior Director, Investor Relations.

On a linked quarter basis, our net interest margin further expanded wealth revenue in capital markets income both increased at a strong pace net charge offs remained low in capital ratios moved higher.

Speaker #1: Please go ahead.

Speaker #2: 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.

Jennifer Demba: 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, Executive Vice President and 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 risk 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.

We also demonstrated continued hiring momentum with 25, new revenue producers added during the third quarter for a total of 74 year to date.

Speaker #2: Chairman, CEO, and President Kevin Blair will begin the call. He will be followed by Jamie Gregory, Executive Vice President and Chief Financial Officer, and they will be available to answer your questions at the end of the call.

While some anticipated that the merger announcement might distract from our near term performance. Our results. This quarter tell a different story, we delivered continued strength in loan production sustained momentum in fee income generation and grew our team member count by 43 this quarter, all clear indicators of our focus discipline and resilience.

Speaker #2: Our comments include forward-looking statements. These statements are subject to risk 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 feel highly confident that this momentum should continue in the final quarter of the year as we prepare to close out the merger with Pinnacle financial partners. We continue to expect our pending merger with pinnacle to close in first quarter 2026, this strategically and financially compelling partnership should create the fastest growing most dynamic regional.

Speaker #2: 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.

Speaker #2: 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.

Jennifer Demba: 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. Kevin Blair will provide an overview of the quarter.

Bank in the country.

Since the transaction announcement on July 24th we are engaged extensively with team members and clients in order to ensure a smooth transition and maintain momentum during the integration process. The pinnacle and synovus teams have been working diligently over the past few months as a result, there have been significant tangible progress demonstrated in our merger integration efforts.

Speaker #2: And now, Kevin Blair will provide an overview of the quarter.

Speaker #3: Thank you, Jennifer. Synovus reported strong third-quarter 2025 GAAP earnings per share of $1.33 and adjusted earnings per share of $1.46, up 19% year over year.

Kevin Blair: Thank you, Jennifer. Synovus Financial Corp. reported strong third quarter 2025 GAAP earnings per share of $1.33 and adjusted earnings per share of $1.46, up 19% year over year. Adjusted PP&R growth was also quite healthy, up 5% sequentially and 12% from the third quarter 2024. Our year-over-year earnings growth was primarily attributable to net interest margin expansion, healthy non-interest revenue growth, and lower provision for credit losses. On a linked quarter basis, our net interest margin further expanded, wealth revenue and capital markets income both increased at a strong pace, net charge-offs remained low, and capital ratios moved higher. We also demonstrated continued hiring momentum with 25 new revenue producers added during the third quarter for a total of 74 year to date. While some anticipated that the merger announcement might distract from our near-term performance, our results this quarter tell a different story.

Speaker #3: Adjusted PPNR growth was also quite healthy, up 5% sequentially and 12% from the third quarter of 2024. Our year-over-year earnings growth was primarily attributable to Nenders' margin expansion, healthy non-interest revenue growth, and a lower provision for credit losses.

The entire leadership team has been finalized and communicated and all head count related decisions and employee communications should be complete in the fourth quarter.

We have communicated retention packages for key employees at both Pinnacle and Synovus, there had been significant technology and process oriented decisions made as well, which will further reduce uncertainty for our teams as we move forward and the combination or integration management offices, which were established in late August our working together diligently to.

Speaker #3: On a linked quarter basis, our net interest margin further expanded. Wealth revenue and capital markets income both increased at a strong pace, net charge-offs remained low, and capital ratios moved higher.

Speaker #3: We also demonstrated continued hiring momentum, with 25 new revenue producers added during the third quarter, for a total of 74 year-to-date. While some anticipated that the merger announcement might distract from our near-term performance, our results this quarter tell a different story.

Complete the required work streams that are needed before and after the closing of the transaction, including our <unk> readiness.

The merger related financial assumptions, we communicated in July are unchanged, but we now expect the company's pro forma CET one ratio to be approximately 10, 1% at the closing of the merger as a result of a more favorable rate environment and the strong third quarter capital generation, we plan to issue 2002.

Speaker #3: We delivered continued strength in loan production, sustained momentum in fee income generation, and grew our team member count by 43 this quarter. All clear indicators of our focus, discipline, and resilience.

Kevin Blair: We delivered continued strength in loan production, sustained momentum in fee income generation, and grew our team member count by 43 this quarter, all clear indicators of our focus, discipline, and resilience. We feel highly confident that this momentum should continue in the final quarter of the year as we prepare to close out the merger with Pinnacle Financial Partners. We continue to expect our pending merger with Pinnacle to close in first quarter 2026. This strategically and financially compelling partnership should create the fastest growing, most dynamic regional bank in the country. Since the transaction announcement on July 24, we have engaged extensively with team members and clients in order to ensure a smooth transition and maintain momentum during the integration process. The Pinnacle and Synovus teams have been working diligently over the past few months.

Speaker #3: We feel highly confident that this momentum should continue in the final quarter of the year as we prepare to close out the merger with Pinnacle Financial Partners.

Six pro forma company guidance after the merger closes early next year.

Now I will turn it over to Jamie who will review our third quarter results in greater detail Jamie.

Speaker #3: We continue to expect our pending merger with Pinnacle to close in the first quarter of 2026. This strategically and financially compelling partnership should create the fastest-growing, most dynamic regional bank in the country.

Thank you Kevin <unk>.

Excluding merger related expenses Synovus generated positive operating leverage in the third quarter adjusted revenue increased 9% year over year, while adjusted noninterest expense rose, 6% on a linked quarter basis adjusted revenue increased 4%, while adjusted noninterest expense increased 3%.

Speaker #3: Since the transaction announcement on July 24th, we have engaged extensively with team members and clients in order to ensure a smooth transition and maintain momentum during the integration process.

Speaker #3: The Pinnacle and Synovus teams have been working diligently over the past few months. As a result, there has been significant tangible progress demonstrated in our merger integration efforts.

Net interest margin expansion drove 3% linked quarter and 8% year over year net interest income growth.

Kevin Blair: As a result, there has been significant tangible progress demonstrated in our merger integration efforts. The entire leadership team has been finalized and communicated, and all headcount-related decisions and employee communication should be complete in the fourth quarter. We have communicated retention packages for key employees at both Pinnacle and Synovus. There have been significant technology and process-oriented decisions made as well, which will further reduce uncertainty for our teams as we move forward in the combination. Our integration management offices, which were established in late August, are working together diligently to complete the required workstreams that are needed before and after the closing of the transaction, including our LFI readiness.

Speaker #3: The entire leadership team has been finalized and communicated, and all headcount-related decisions and employee communications should be complete in the fourth quarter. We have communicated retention packages for key employees at both Pinnacle and Synovus.

On a sequential basis, the NIM increased four basis points to 341% as higher loan yields hedge maturities and fixed rate asset re pricing more than offset higher cash balances.

On a linked quarter basis average loans increased 1% while period end loans rose 5%.

Speaker #3: There have been significant technology and process-oriented decisions made as well, which will further reduce uncertainty for our teams as we move forward in the combination.

Our high growth verticals, particularly specialty lending continue to drive loan growth.

Speaker #3: Our integration management offices, which were established in late August, are working together diligently to complete the required work streams that are needed before and after the closing of the transaction including our LFI readiness.

Institutional commercial real estate lending was also a strong contributor.

Our loan production jumped 43% year over year, but the primary headwinds to our period end loan growth were lower corporate and investment banking utilization and higher payoffs as a result of strong institutional capital mortgage activity.

Speaker #3: The merger-related financial assumptions we communicated in July are unchanged. However, we now expect the company's pro forma CET1 ratio to be approximately 10.1% at the closing of the merger, as a result of a more favorable rate environment and strong third-quarter capital generation.

Kevin Blair: The merger-related financial assumptions we communicated in July are unchanged, but we now expect the company's pro forma CET1 ratio to be approximately 10.1% at the closing of the merger as a result of a more favorable rate environment and the strong third quarter capital generation. We plan to issue 2026 pro forma company guidance after the merger closes early next year. Now I will turn it over to Jamie, who will review our third quarter results in greater detail. Jamie?

While lower CIB utilization and payoffs were a headwind to third quarter loan growth overall CIB loan commitments increased at a healthy pace.

Period end core deposits declined $231 million or 1% from the second quarter largely as a result of a strategic $370 million decline in public funds.

Speaker #3: We plan to issue 2026 pro forma company guidance after the merger closes early next year. Now I will turn it over to Jamie, who will review our third quarter results in greater detail.

Growth in time deposits and interest bearing demand deposits was more than offset by a decline in money market and noninterest bearing deposits.

Speaker #3: Jamie?

Speaker #4: Thank you, Kevin. Excluding merger-related expenses, Synovus generated positive operating leverage in the third quarter, adjusted revenue increased 9% year over year, while adjusted non-interest expense rose 6%.

Jamie Gregory: Thank you, Kevin. Excluding merger-related expenses, Synovus generated positive operating leverage in the third quarter. Adjusted revenue increased 9% year over year, while adjusted non-interest expense rose 6%. On a linked quarter basis, adjusted revenue increased 4%, while adjusted non-interest expense increased 3%. Net interest margin expansion drove 3% linked quarter and 8% year over year net interest income growth. On a sequential basis, the net interest margin increased 4 basis points to 3.41% as higher loan yields, hedge maturities, and fixed-rate asset repricing more than offset higher cash balances. On a linked quarter basis, average loans increased 1%, while period-end loans rose 0.5%. Our high-growth verticals, particularly Specialty Lending, continue to drive loan growth, while institutional commercial real estate lending was also a strong contributor.

Our average cost of deposits was relatively flat at two 3% in the third quarter.

<unk> continues to grow noninterest revenue at a healthy pace.

Speaker #4: On a linked quarter basis, adjusted revenue increased 4%, while adjusted non-interest expense increased 3%. Net interest margin expansion drove 3% linked quarter and 8% year over year net interest income growth.

Adjusted noninterest revenue was $136 million.

Which increased 4% sequentially and jumped 12% year over year.

Linked quarter growth was driven by a 4% increase in wealth revenue largely from brokerage and trust fees and an 8% increase in capital markets income primarily from client derivative and arranger fees.

Speaker #4: On a sequential basis, the NIM increased four basis points to 3.41%, as higher loan yields, hedge maturities, and fixed-rate asset repricing more than offset higher cash balances.

On a year over year basis growth was very broad based we produced 11% growth in core banking fees, 5% growth in wealth revenue and a 36% increase in capital markets income primarily from client derivative and arranger fees.

Speaker #4: On a linked quarter basis, average loans increased 1%, while period-end loans rose 0.5%. Our high-growth verticals, particularly specialty lending, continue to drive loan growth.

Speaker #4: While institutional commercial real estate lending was also a strong contributor, loan production jumped 43% year over year. However, the primary headwinds to our period-end loan growth were lower corporate and investment banking utilization and higher payoffs as a result of strong institutional capital markets activity.

We remain disciplined with noninterest expense control adjusted noninterest expense rose, 3% on a linked quarter basis and increased 6% year over year.

Jamie Gregory: Loan production jumped 43% year over year, but the primary headwinds to our period-end loan growth were lower Corporate and Investment Banking utilization and higher payoffs as a result of strong institutional Capital Markets activity. While lower CIB utilization and payoffs were a headwind to third quarter loan growth, overall CIB loan commitments increased at a healthy pace. Period-end core deposits declined $231 million, or 1% from the second quarter, largely as a result of a strategic $370 million decline in public funds. Growth in time deposits and interest-bearing demand deposits was more than offset by a decline in money market and non-interest-bearing deposits. Our average cost of deposits was relatively flat at 2.23% in the third quarter. Synovus continues to grow non-interest revenue at a healthy pace. Adjusted non-interest revenue was $136 million, which increased 4% sequentially and jumped 12% year over year.

There is $24 million of nonrecurring expense related to our pending merger with pinnacle, mostly for professional fees related to accounting investment banking consulting and legal services.

Speaker #4: While lower CIB utilization and payoffs were a headwind to third quarter loan growth, overall CIB loan commitments increased at a healthy pace. Period-end core deposits declined $231 million, or 1%, from the second quarter, largely as a result of a strategic $370 million decline in public funds.

Sequential growth was driven by higher employment expenses, primarily as a result of an additional business day incentive accruals and technology related spend.

Year over year noninterest expense growth was largely attributable to higher employment expense and technology spend.

Speaker #4: Growth in time deposits and interest-bearing demand deposits was more than offset by a decline in money market and non-interest-bearing deposits. Our average cost of deposits was relatively flat at 2.23% in the third quarter.

These expenses were partially offset by lower operational losses as fraud related costs continued to be well managed.

Credit trends remained very healthy in the third quarter net charge offs were $15 million or 14 basis points, while nonperforming assets improved to five 3% of total loans and real estate owned down from five 9% in the second quarter.

Speaker #4: Synovus continues to grow non-interest revenue at a healthy pace. Adjusted non-interest revenue was 136 million dollars, which increased 4% sequentially and jumped 12% year over year.

The allowance for credit losses ended the third quarter at $1, one 9% compared to $1 one 8% in June.

Speaker #4: Linked quarter growth was driven by a 4% increase in wealth revenue, largely from brokerage and trust fees, and an 8% increase in capital markets income, primarily from client-derivative and arranger fees.

Jamie Gregory: Linked quarter growth was driven by a 4% increase in wealth revenue, largely from brokerage and trust fees, and an 8% increase in Capital Markets income, primarily from client derivative and arranger fees. On a year-over-year basis, growth was very broad-based. We produced 11% growth in core banking fees, 5% growth in wealth revenue, and a 36% increase in Capital Markets income, primarily from client derivative and arranger fees. We remain disciplined with non-interest expense control. Adjusted non-interest expense rose 3% on a linked quarter basis and increased 6% year over year. There is $24 million of non-recurring expense related to our pending merger with Pinnacle Financial Partners, mostly for professional fees related to accounting, investment banking, consulting, and legal services. Sequential growth was driven by higher employment expenses, primarily as a result of an additional business day, incentive accruals, and technology-related spend.

Finally, the capital position remained strong in the third quarter with the preliminary common equity tier one ratio at 11, 4% and preliminary total risk based capital now at 14.0% to 7%.

Speaker #4: On a year-over-year basis, growth was very broad-based. We produced 11% growth in core banking fees, 5% growth in wealth revenue, and a 36% increase in capital markets income.

This is the highest CET one ratio and synovus is history.

I'll now turn it back to Kevin to discuss our 2025 guidance.

Speaker #4: Primarily from client-derivative and arranger fees. We remained disciplined with non-interest expense control. Adjusted non-interest expense rose 3% on a linked-quarter basis and increased 6% year over year.

Thank you Jamie.

And loan growth for the year is expected to be approximately four 5% with broad based growth expected in the fourth quarter.

The majority of the 2025 loan growth is from our high growth verticals. While we are beginning to see momentum in additional asset classes, such as CRE community banking and senior housing that have been headwinds to growth in recent years.

Speaker #4: There is 24 million dollars of non-recurring expense related to our pending merger with Pinnacle. Mostly for professional fees related to accounting, investment banking, consulting, and legal services.

On the deposit front, we project core deposit growth of approximately half a percentage point for the year in 2025, we have reduced promotional CD pricing, which has resulted in lower CD retention. In addition, we have experienced lower augmentation in public funds balances year to date, which has been offset in the P&L by better than expected departure.

Speaker #4: Sequential growth was driven by higher employment expenses, primarily as a result of additional business day incentive accruals and technology-related spending. Year over year, non-interest expense growth was largely attributable to higher employment expenses and technology spending.

Jamie Gregory: Year-over-year non-interest expense growth was largely attributable to higher employment expense and technology spend. These expenses were partially offset by lower operational losses as fraud-related costs continue to be well managed. Credit trends remained very healthy in the third quarter. Net charge-offs were $15 million, or 14 bps, while non-performing assets improved to 0.53% of total loans and real estate owned, down from 0.59% in the second quarter. The allowance for credit losses ended the third quarter at 1.19% compared to 1.18% in June. Finally, the capital position remained strong in the third quarter, with the preliminary CET1 ratio at 11.24% and preliminary total risk-based capital now at 14.07%. This is the highest CET1 ratio in Synovus Financial Corp.'s history. I'll now turn it back to Kevin to discuss our 2025 guidance.

Speaker #4: These expenses were partially offset by lower operational losses, as fraud-related costs continue to be well managed. Credit trends remained very healthy in the third quarter.

Betas, which has driven an expanding margin the fourth quarter is typically our strongest for growth and should be led by continued focus on core deposit production across our business lines normal seasonal benefits and investments in deposit specialties, our adjusted 2025 revenue growth outlook of six 5%.

Speaker #4: Net charge-offs were $15 million, or 14 basis points, while non-performing assets improved to 0.53% of total loans and real estate owned, down from 0.59% in the second quarter.

Our interest rate sensitivity profile is now modestly more asset sensitive to the front end of the curve as we prepare our balance sheet for the pending merger.

Speaker #4: The allowance for credit losses ended the third quarter at 1.19%, compared to 1.18% in June. Finally, the capital position remained strong in the third quarter, with the preliminary common equity tier one ratio at 11.24%, and preliminary total risk-based capital now at 14.07%.

During an easing cycle the margins should still exhibit short term pressure due to the timing lag between loan and deposit repricing.

Assuming 225 basis point fed funds cuts in October and December and a relatively stable 10 year Treasury yield we believe that the net interest margin should be under some modest pressure in the fourth quarter.

Speaker #4: This is the highest CET1 ratio in Synovus's history. I'll now turn it back to Kevin to discuss our 2025 guidance.

We anticipate adjusted noninterest revenue of $515 million to $520 million this year.

Speaker #3: Thank you, Jamie. Period end loan growth for the year is expected to be approximately 4.5%, with broad-based growth expected in the fourth quarter. The majority of the 2025 loan growth is from our high growth verticals, while we are beginning to see momentum in additional asset classes such as CRE, community banking, and senior housing that have been headwinds to growth in recent years.

Kevin Blair: Thank you, Jamie. Period-end loan growth for the year is expected to be approximately 4.5%, with broad-based growth expected in the fourth quarter. The majority of the 2025 loan growth is from our high-growth verticals, while we are beginning to see momentum in additional asset classes such as CRE, community banking, and senior housing that have been headwinds to growth in recent years. On the deposit front, we project core deposit growth of approximately 0.5% for the year. In 2025, we have reduced promotional CD pricing, which has resulted in lower CD retention. In addition, we have experienced lower augmentation in public funds balances year to date, which has been offset in the P&L by better-than-expected deposit betas, which has driven an expanding margin.

Execution remains solid in our core fee income categories, and we expect relative stability in the lines of business in the fourth quarter.

Adjusted noninterest expense growth should be two 5% in 2025, we will continue to be very balanced and disciplined in our core expense management and as always we will continue to invest in areas that support long term growth the credit loss environment remains favorable we estimate that net charge offs should be between 15 and 20 basis points in the.

Speaker #3: On the deposit front, we project core deposit growth of approximately half a percentage point for the year. In 2025, we have reduced promotional CD pricing, which has resulted in lower CD retention.

<unk> fourth quarter compared to 17 basis points in the first nine months of 2025.

Speaker #3: In addition, we have experienced lower augmentation in public funds balances year to date, which has been offset in the P&L by better than expected deposit betas, which has driven expanding margin.

On the capital front, we are expecting a CET one ratio of approximately <unk> 11, 35% at year end 2025, with the priority on capital deployment, continuing to be loan growth and capital needs related to the merger.

Speaker #3: The fourth quarter is typically our strongest for growth and should be led by continued focus on core deposit production across our business lines, normal seasonal benefits, and investments in deposit specialties.

Kevin Blair: The fourth quarter is typically our strongest for growth and should be led by continued focus on core deposit production across our business lines, normal seasonal benefits, and investments in deposit specialties. Our adjusted 2025 revenue growth outlook is 6.5%. Our interest rate sensitivity profile is now modestly more asset-sensitive to the front end of the curve as we prepare our balance sheet for the pending merger. During an easing cycle, the margin should still exhibit short-term pressure due to the timing lag between loan and deposit repricing. Assuming two 25 basis point Fed funds cuts in October and December and a relatively stable 10-year Treasury yield, we believe that the net interest margin should be under some modest pressure in the fourth quarter. We anticipate adjusted non-interest revenue of $515 million to $520 million this year.

Finally, the effective tax rate was 20% in the third quarter and should be approximately 21% for the full year 2025 in.

In summary, our team delivered strong third quarter financial performance and we are entering the fourth quarter with confidence and momentum.

Speaker #3: Our adjusted 2025 revenue growth outlook is 6.5%. Our interest rate sensitivity profile is now modestly more asset-sensitive to the front end of the curve as we prepare our balance sheet for the pending merger.

Our leadership team has consistently delivered on the core principles that underpin financial strength driving ongoing transformation into a high performing client focused and fiercely competitive organization.

Speaker #3: During an easing cycle, the margin should still exhibit short-term pressure due to the timing lag between loan and deposit repricing. Assuming two 25 basis point Fed funds cuts in October and December, and a relatively stable 10-year Treasury yield, we believe that the net interest margin should be under some modest pressure in the fourth quarter.

With our strategic combination with Pinnacle. This momentum will surge now that our new leadership team is firmly in place the acceleration of talent acquisition has commenced which will drive incremental growth in 2026 and beyond.

Moreover, our proactive and detailed merger integration efforts with the pinnacle team are progressing with precision ensuring we are fully prepared for a successful close in the first quarter of 'twenty six and then turn our attention to systems conversion in the first quarter of 2007, we.

Speaker #3: We anticipate adjusted non-interest revenue of $515 million to $520 million this year. Execution remains solid in our core fee income categories, and we expect relative stability in the lines of business in the fourth quarter.

Kevin Blair: Execution remains solid in our core fee income categories, and we expect relative stability in the lines of business in the fourth quarter. Adjusted non-interest expense growth should be 2.5% in 2025. We will continue to be very balanced and disciplined in our core expense management, and as always, we will continue to invest in areas that support long-term growth. The credit loss environment remains favorable. We estimate that net charge-offs should be between 15 and 20 basis points in the fourth quarter compared to 17 basis points in the first nine months of 2025. On the capital front, we are expecting a CET1 ratio of approximately 11.35% at year-end 2025, with the priority on capital deployment continuing to be loan growth and capital needs related to the merger. Finally, the effective tax rate was 20% in the third quarter and should be approximately 21% for the full year 2025.

Speaker #3: Adjusted non-interest expense growth should be 2.5% in 2025. We will continue to be very balanced and disciplined in our core expense management. And as always, we will continue to invest in areas that support long-term growth.

We have made great progress in aligning processes operating models and cultures with robust fundamentals and a bold clearly defined strategic path, we are exceptionally well positioned to transition to the pinnacle operating model. One that is designed to drive top quartile growth in revenue earnings per share and tangible book.

Speaker #3: The credit loss environment remains favorable. We estimate that net charge-offs should be between 15 and 20 basis points in the fourth quarter, compared to 17 basis points in the first nine months of 2025.

Value while there is still much work ahead, each day I grow more convinced and convicted of the extraordinary potential and the power of our new franchise and with that operator, we will now open the call for questions.

Speaker #3: On the capital front, we are expecting a CET-1 ratio of approximately 11.35% at year end 2025, with the priority on capital deployment continuing to be loan growth and capital needs related to the merger.

Thank you we will now begin the question and answer session.

Speaker #3: Finally, the effective tax rate was 20% in the third quarter and should be approximately 21% for the full year 2025. In summary, our team delivered strong third quarter financial performance, and we are entering the fourth quarter with confidence and momentum.

Ask a question you May press Star then one on your touch timeframe.

If youre using a speakerphone please pick up your handset before pressing the case too.

Kevin Blair: In summary, our team delivered strong third quarter financial performance, and we are entering the fourth quarter with confidence and momentum. Our leadership team has consistently delivered on the core principles that underpin financial strength, driving ongoing transformation into a high-performing, client-focused, and fiercely competitive organization. With our strategic combination with Pinnacle Financial Partners, this momentum will surge. Now that our new leadership team is firmly in place, the acceleration of talent acquisition has commenced, which will drive incremental growth in 2026 and beyond. Moreover, our proactive and detailed merger integration efforts with the Pinnacle Financial Partners team are progressing with precision, ensuring we are fully prepared for a successful close in the first quarter of 2026 and then turn our attention to systems conversion in the first quarter of 2027. We have made great progress in aligning processes, operating models, and cultures.

Withdraw your question. Please press Star then two.

In the interest of time, please limit yourself to one question and one follow up.

Speaker #3: Our leadership team has consistently delivered on the core principles that underpin financial strength, driving ongoing transformation into a high-performing client-focused and fiercely competitive organization.

Our first question for today comes from Matt Catherine Miller of <unk>. Your line is now open. Please go ahead.

Thanks, Good morning.

Speaker #3: With our strategic combination with Pinnacle, this momentum will surge, now that our new leadership team is firmly in place the acceleration of talent acquisition has commenced, which will drive incremental growth in 2026 and beyond.

Good morning, Brian.

I wanted to start maybe with the capital of nice to see the capital build and now Youre starting capital with a higher level coming into next year post merger curious your thoughts on how quickly you think you'll be able to start buying back stock after the merger closes.

Speaker #3: Moreover, our proactive and detailed merger integration efforts with the Pinnacle team are progressing with precision, ensuring we are fully prepared for a successful close in the first quarter of '26 and then turn our attention to systems conversion in the first quarter of '27.

Thanks, Catherine we Havent given capital target post close yet, but I'll give you a little bit of context. So we expect to close with 10, 1% headline CET, one that's nine 9% including <unk>.

Speaker #3: We have made great progress in aligning processes, operating models, and cultures. With robust fundamentals and a bold, clearly defined strategic path, we are exceptionally well positioned to transition to the Pinnacle operating model, one that is designed to drive top quartile growth in revenue, earnings per share, and tangible book value.

When you look at category for banks nine 9% is right at the second highest <unk> include Natus Gi up the <unk>.

Kevin Blair: With robust fundamentals and a bold, clearly defined strategic path, we are exceptionally well positioned to transition to the Pinnacle Financial Partners operating model, one that is designed to drive top quartile growth in revenue, earnings per share, and tangible book value. While there is still much work ahead, each day I grow more convinced and convicted of the extraordinary potential and the power of our new franchise. Operator, we'll now open the call for questions. The merger-related financial assumptions we communicated in July are unchanged, but we now expect the company's pro forma CET1 ratio to be approximately 10.1% at the closing of the merger as a result of a more favorable rate environment and the strong third quarter capital generation. We plan to issue 2026 pro forma company guidance after the merger closes early next year.

For banks and so we think those are those are pretty strong levels now it remains our intent to build capital.

In the early early quarters.

Speaker #3: While there is still much work ahead, each day I grow more convinced and convicted of the extraordinary potential and power of our new franchise.

Post close but we.

We think we're starting from a very strong point when you look at capital generation through earnings what I would point to is the earnings power of this institution is so strong.

Speaker #3: And with that operator, we'll now open the call for questions. The merger-related financial assumptions we communicated in July are unchanged; however, we now expect the company's pro forma CET1 ratio to be approximately 10.1% at the closing of the merger, as a result of a more favorable rate environment and strong third-quarter capital generation.

Before you consider a risk weighted asset growth. We believe we will generate 35 to 40 basis points of common equity tier one each quarter.

And that strength and capital generation gives us a lot of flexibility in how we deploy it obviously our goal is to deploy it to clients. We want to grow. This bank, we want to go out there and take market share in the southeast. If you look at what Pinnacle has done for decades, what we've been doing we believe we have the right to win.

Speaker #3: We plan to issue 2026 pro forma company guidance after the merger closes early next year.

Speaker #5: Alex, you can go to questions.

[Company Representative]: Alex, we can go to questions.

Speaker #1: Thank you. We'll now begin the question-and-answer session. To ask a question, you may press star and one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.

Operator: Thank you. We'll now begin the question and answer session. To ask a question, you may press star, then one on your touch-tone phone. If you're using a speaker phone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then two. In the interest of time, please limit yourself to one question and one follow-up. Our first question for today comes from Katherine Weislogel of KBW. Your line is now open. Please go ahead.

And we will do that and so thats priority one, but there is a lot of capital generated through earnings that we will be balanced and so in the early quarters, you should expect to see a little bit of capital accretion, but beyond that we'll be looking at the economy, the economic outlook the loan growth outlook and deciding what to do.

Speaker #1: To withdraw your question, please press star and two. In the interest of time, please limit yourself to one question and one follow-up. Our first question for today comes from Katherine Miller of KBW.

Okay. That's great. Thank you and then I'll follow up is just on deposits and I know, Kevin you talked a little bit how fourth quarter is typically your strongest since that we should see that our deposit growth into next quarter, but was just curious if you could just give us a little bit more color on some of the trends that you saw this quarter and public funds.

Speaker #1: Your line's now open. Please go ahead.

Speaker #6: Thanks. Good morning.

Katherine Weislogel: Thanks. Good morning.

Speaker #1: Morning, Katherine.

Kevin Blair: Morning, my friend.

Speaker #6: Let's just start maybe with the capital is nice to see the capital build and now you're starting capital. With a higher level coming into next year post-merger, curious your thoughts on how quickly you think you'll be able to start buying back stock after the merger closes.

Katherine Weislogel: I want to start maybe with the capital. It was nice to see the capital build, and now you're starting capital with a higher level coming into next year post-merger. Curious your thoughts on how quickly you think you'll be able to start buying back stock after the merger closes.

Sure some of that decline but.

Yes.

What kind of gives you comfort that we'll see better core deposit growth going into the fourth quarter, maybe what trends you're seeing underneath the surface there. Thanks.

Speaker #7: Thanks, Katherine. We haven't given a capital target post-close yet, but I'll give you a little bit of context. So you know we expect to close with 10.1% headline CET1.

Kevin Blair: Thanks, Katherine. We haven't given capital targets post-close yet, but I'll give you a little bit of context. We expect to close with 10.1% headline CET1. That's 9.9% including AOCI. When you look at category four banks, 9.9% is right at the second highest of CET1, including AOCI of the cap four banks, and we think those are pretty strong levels. It remains our intent to build capital in the early quarters post-close, but we think we're starting from a very strong point. When you look at capital generation through earnings, what I would point to is that the earnings power of this institution is so strong that before you consider risk-weighted asset growth, we believe we will generate 35 to 40 basis points of common equity tier one each quarter. That strength in capital generation gives us a lot of flexibility in how we deploy it.

Catherine It's a great question and to your point when we look at deposit you got to look at all the factors. We produced about $2 6 billion in new deposit production. This quarter was actually up 18% versus the second quarter. So we saw good momentum there as you noted the majority of the declines are just the seasonality around the public funds and we generally see a 'twenty.

Speaker #7: That's 9.9% including AOCI. When you look at category four banks, 9.9% is right at the second highest of CET-1 including AOCI up the CAP four banks.

Percent increase from September to November in that category. So we know that will come back in but we're pleased.

Speaker #7: And so we think those are pretty strong levels. Now, it remains our intent to build capital in the early quarters, post-close. But we think we're starting from a very strong point.

Pleased with the level of production, we saw in Cds, we grew money market and noninterest bearing or interest bearing checking this quarter. So if we keep the production levels higher what we saw on DDA you saw on a period end basis. It was down but on averages. It was flat and we think that will continue I think thats the third quarter in a row that we've seen average balances in <unk>.

Speaker #7: When you look at capital generation through earnings, what I would point to is that the earnings power of this institution is so strong that before you consider risk-weighted asset growth, we believe we will generate 35 to 40 basis points of common equity tier one each quarter.

Roughly flat so with production stayed strong with not seen a lot of diminishment in average accounts average balance per account declining plus the seasonality coming in with public funds and some other deposits were pretty confident that the fourth quarter is going to be very strong.

Speaker #7: And that strength in capital generation gives us a lot of flexibility in how we deploy it. Obviously, our goal is to deploy it to clients.

Kevin Blair: Obviously, our goal is to deploy it to clients. We want to grow this bank. We want to go out there and take market share here in the Southeast. If you look at what Pinnacle has done for decades, what we've been doing, we believe we have the right to win, and we will do that. That's priority one. There is a lot of capital generated through earnings that we will be balanced. In the early quarters, you should expect to see a little bit of capital accretion. Beyond that, we'll be looking at the economy, the economic outlook, the loan growth outlook, and deciding what to do.

Speaker #7: We want to grow this bank. We want to go out there and take market share in the Southeast. If you look at what Pinnacle has done for decades, what we've been doing, we believe we have the right to win and we will do that.

Great. Thank you.

Thank you. Your next question comes from Jared Shaw of Barclays.

So open please go ahead.

Speaker #7: And so that's priority one. But there is a lot of capital generated through earnings that we will be balanced. In the early quarters, you should expect to see a little bit of capital accretion.

Hey, good morning, everybody.

Sure.

Just maybe looking at the hiring pace you called out being able to add 43 people. This quarter and then talked about accelerating talent acquisition as we as we go forward.

Speaker #7: But beyond that, we'll be looking at the economy, the economic outlook, the loan growth outlook, and deciding what to do.

What's the what's sort of been the.

Speaker #6: Okay. That's great. Thank you. And then a follow-up is just on deposits. And I know, Kevin, you talked a little bit about how fourth quarter is typically your strongest.

Katherine Weislogel: Okay. That's great. Thank you. My follow-up is just on deposits. I know, Kevin, you talked a little bit about how fourth quarter is typically your strongest, and we should see better deposit growth into next quarter. I was just curious if you could give us a little bit more color on some of the trends that you saw this quarter. I know public funds drove some of that decline, but what kind of gives you comfort that we'll see better core deposit growth going into the fourth quarter? Maybe what trends you're seeing underneath the surface there? Thanks.

The tone of conversations with people that are looking to come to the bank and what should we expect.

Speaker #6: And so we should see better deposit growth into next quarter. But I was just curious if you could give us a little bit more color on some of the trends that you saw this quarter.

Sure from the Synovus side of hiring trend maybe beyond after this quarter going into fourth quarter and first quarter.

Speaker #6: I know public funds drove some of that decline, but you know what gives you comfort that we'll see better core deposit growth going into the fourth quarter?

Hey, Jared I would categorize the environment as general excitement.

I will start with our own internal team members because as pinnacle has shown and I think we've shown as well the ability to hire bankers starts with the people you have inside the four walls of your company those that can serve as a testament on.

Speaker #6: Maybe what trends you're seeing underneath the surface there. Thanks.

Speaker #7: Yeah. You know Katherine, it's a great question. And to your point, when we look at deposits, you got to look at all the factors.

Kevin Blair: Yeah. You know, Katherine, it's a great question. To your point, when we look at deposits, you got to look at all the factors. We produced about $2.6 billion in new deposit production this quarter. It was actually up 18% versus the second quarter. We saw good momentum there. As you noted, the majority of the declines are just the seasonality around the public funds. We generally see a 20% increase from September to November in that category. We know that will come back in. We're pleased with the level of production we saw in CDs. We grew money market, and non-interest bearing or interest bearing checking this quarter. If we keep the production levels higher, what we saw on DDA, you saw on a period-end basis, it was down, but on averages, it was flat. We think that will continue.

Speaker #7: We produced about 2.6 billion in new deposit production this quarter. It was actually up 18% versus the second quarter. So we saw good momentum there.

This being a great company to work for and so you can imagine after the announcement in July there was some concerns and some of our team members wanted to understand the org structure of the new car.

Speaker #7: As you noted, the majority of the declines are just seasonality around the public funds. We generally see a 20% increase from September to November in that category.

And.

We obviously as we sit shared gave some retention dollars out through our high performers, but ultimately once we got our team members comfortable with moving forward and actually excited about the combination it's easier to go and then talk to those individuals who are prospects to join our company when they look at the combined company and see that.

Speaker #7: So we know that we'll come back in. But we're pleased with the level of production we saw in CDs. We grew money market and non-interest-bearing or interest-bearing checking this quarter.

Speaker #7: So, if we keep the production levels higher, what we saw on DDA, you saw on a period-end basis, it was down. But on averages, it was flat.

Company's pride themselves on customer service and making sure that we remove any of the red tape that generally comes into play with folks trying to fully.

Speaker #7: And we think that will continue. I think that's the third quarter in a row that we've seen average balances in DDA roughly flat. So, with production staying strong, with not seeing a lot of diminish in average accounts, average balance per account declining, plus the seasonality coming in with public funds and some other deposits, we're pretty confident that the fourth quarter is going to be very strong.

Kevin Blair: I think that's the third quarter in a row that we've seen average balances in DDA, roughly flat. With production staying strong, with not seeing a lot of diminishment in average accounts, average balance per account declining, plus the seasonality coming in with public funds and some other deposits, we're pretty confident that the fourth quarter is going to be very strong.

Manage their relationships and build positive client relationships.

When they see that we're able to do that on a larger scale and have more products and capabilities I think it leads to people wanting to join the company ultimately I think it comes down to execution, but people are generally buying into the fact that this combined organization will be bigger but also better.

Speaker #6: Great. Thank you.

Katherine Weislogel: Great. Thank you.

Speaker #1: Thank you. Our next question comes from Jared Shaw of Barclays. Your line's now open. Please go ahead.

Operator: Thank you. Our next question comes from Jared Shaw of Barclays. Your line's now open. Please go ahead.

Okay. Okay.

And then maybe shifting just a little bit.

Speaker #8: Hey, good morning, everybody.

Jared Shaw: Hey, good morning, everybody.

On credit you had.

Pretty good.

Speaker #7: Morning, Jared.

Good trends in both reduction of non performers as well as reduction in classified what's driving that is that improvement.

Speaker #8: You know, just maybe looking at the hiring pace, you called out being able to add 43 people this quarter and then, you know, talked about accelerating talent acquisition as we go forward.

Kevin Blair: Good morning.

Jared Shaw: Just maybe looking at the hiring pace, you called out being able to add 43 people this quarter, and then talked about accelerating talent acquisition as we go forward. What's sort of been the tone of conversations with people that are looking to come to the bank, and what should we expect from the Synovus side of a hiring trend, maybe beyond after this quarter, going into fourth quarter and first quarter?

Improvement in the underlying individual credits or is it more if that those those weaker credits or.

Being able to be moved off the books and what.

Speaker #8: What's sort of been the tone of conversations with people that are looking to come to the bank? And what should we expect sort of from the Synovus side of a hiring trend maybe beyond you know after this quarter going into fourth quarter and first quarter?

What should we be thinking about service as credit trends continue.

Continuing to season premiere.

Yeah, Hi, Darren it's Ann so thinking about our nonperforming trends, what we what we saw it.

Really the latter point that you made we did have about 30 million of NPL out plans that were related to our C&I portfolio and that was a combination of various pay off.

Speaker #7: Yeah, Jared, I would categorize the environment as general excitement. And I would start with our own internal team members because, as Pinnacle has shown—and I think we've shown as well—the ability to hire bankers starts with the people you have inside the four walls of your company.

Kevin Blair: Yeah, Jared, I would categorize the environment as general excitement. I would start with our own internal team members because as Pinnacle has shown and I think we've shown as well, the ability to hire bankers starts with the people you have inside the four walls of your company, those that can serve as a testament on this being a great company to work for. If you can imagine, after the announcement in July, there were some concerns and some of our team members wanted to understand the org structure, the new comp, and we obviously, as we shared, gave some retention dollars out to our high performers. Ultimately, once we got our team members comfortable with moving forward and actually excited about the combination, it's easier to go and then talk to those individuals who are prospects to join our company.

As well as pay down on those plans and say we were encouraged.

Speaker #7: Those that can serve as a testament to this being a great company to work for. And so, if you can imagine, after the announcement in July, there were some concerns among some of our team members who wanted to understand the org structure of the new company.

And just that diversity of that activity in the C&I portfolio.

And then the other impact came out of the foreclosure of hour.

Speaker #7: And we obviously, as we shared, gave some retention dollars out to our high performers. But ultimately, once we got our team members comfortable with moving forward and actually excited about the combination, it's easier to go and then talk to those individuals who are prospects to join our company.

Our Atlanta office nonperforming lines that you've heard us talk about previously and so thats why youll see.

The disparity and Npls versus MPA for the first time this quarter that you hadn't seen in a while so we did take that property into oriented and we are working with the tenants today.

Speaker #7: When they look at the combined company and see that both companies pride themselves on customer service and making sure that we remove any of the red tape that generally comes into play with folks trying to fully manage their relationships and build positive client relationships.

Kevin Blair: When they look at the combined company and see that both companies pride themselves on customer service and making sure that we remove any of the red tape that generally comes into play with folks trying to fully manage their relationships and build positive client relationships, when they see that we're able to do that on a larger scale and have more products and capabilities, I think it leads to people wanting to join the company. Ultimately, I think it comes down to execution, but people are generally buying into the fact that this combined organization will be bigger, but also better.

And.

Coming to that long term revelation.

And Jared just to put a bow on that to your point I know there are a lot of credit questions that it made them cropping up in the last week.

As our lowest net charge off quarter in almost three years, our criticized and classified ratios are the lowest they've been in two years. It was the third successive quarter of only having $25 million of inflows into npls. So not only is it a positive trend I think we have some stability in these levels.

Speaker #7: When they see that we're able to do that on a larger scale and have more products and capabilities, I think it leads to people wanting to join the company.

Speaker #7: Ultimately, I think it comes down to execution. However, people are generally buying into the fact that this combined organization will be bigger, but also better.

And as we shared in the guidance, we expect charge offs to remain relatively stable.

Speaker #8: Okay. Okay. And then maybe shifting just a little bit on credit, you had pretty good trends in both reduction of non-performers as well as reduction in classified.

Jared Shaw: Okay, and then maybe shifting just a little bit, on credit, you had pretty good trends in both reduction of non-performers as well as reduction in classified. What's driving that? Is that improvement in the underlying individual credits, or is it more that those weaker credits are being able to be moved off the books? What should we be thinking about sort of as credit trends continue to season from here?

Great. Thanks, I appreciate that.

Yeah.

Thank you. Our next question comes from Jon <unk> of RBC capital markets. Your line is now open please.

Speaker #8: What's driving that? Is it an improvement in the underlying individual credits, or is it more that those weaker credits are being able to be moved off the books? And what should we be thinking about as credit trends continue to season from here?

Please go ahead.

Hey, Thanks, good morning.

John Kevin one for you one for you Mark.

So I guess qualitative.

What kind of external and internal.

I guess call. It critical feedback are you receiving today compared to maybe what you were hearing three months ago I know it was pretty difficult when the deal was announced but can you talk a little bit about how that's progressed.

Speaker #6: Yeah. Hi, Jared. It's Ann. So, thinking about our non-performing trends, you know what we saw was really the latter point that you made. We did have about $30 million of MPL outflows that were related to our CNI portfolio.

Katherine Weislogel: Yeah. Hi, Jared. It's Anne. Thinking about our non-performing trends, what we saw was really the latter point that you made. We did have about $30 million of NPL outflows that were related to our CNI portfolio. That was a combination of various payoffs, as well as paydowns on those loans. We were encouraged by just the diversity of that activity in the CNI portfolio. The other impact came out of the foreclosure of our Atlanta office non-performing loans that you've heard us talk about previously. That's why you'll see the disparity in NPLs versus NPAs for the first time this quarter that you hadn't seen in a while. We did take that property into OREO, and we are working with the tenants today, coming to a long-term resolution.

Kind of what Youre focused on on what Youre hearing.

Turning now externally today that might still a little bit critical of the deal maybe John the way I'd answer that is let me give you. The maybe the five reasons I made the comment that im more convinced and convicted today than I was 90 days ago and this is maybe the questions, we're getting and the responses I am getting back is number one we've had 90 days to build a deeper.

Speaker #6: And that was a combination of various payoffs as well as paydowns on those loans. We were encouraged by the diversity of that activity in the CNI portfolio.

Speaker #6: And then the other impact came out of the foreclosure of our Atlanta office non-performing loans that you've heard us talk about previously. And so that's why you'll see the disparity in MPLs versus MPAs for the first time this quarter that you hadn't seen in a while.

Familiarity with both sides leadership teams and <unk>.

We've gone through the due diligence on this obviously, we didn't get to meet the broader teams on both sides. We've had 90 days to do that we're building strong relationships with both executive teams, we're reinforcing culture alignment and starting to define what our strategic priorities are.

Speaker #6: So, we did take that property into OREO, and we are working with the tenants today, coming to a long-term resolution.

Secondly, we're making progress on key decisions, we put that in the deck, whether it's talent. We made another press release last night of our geographic banking and <unk> Org structures. We're also making decisions around technology those decisions are well defined they're coming early in the process. So it's removing uncertainty for many of our team members and associates.

Speaker #7: And Jared, just to put a bow on that, you know to your point, I know there are a lot of credit questions that have made them cropping up in the last week.

Kevin Blair: Jared, just to put a bow on that, you know, to your point, I know there are a lot of credit questions that have been cropping up in the last week. This is our lowest net charge-off quarter in almost three years. Our criticized and classified ratios are the lowest they've been in two years. It was the third successive quarter of only having $25 million of inflows into NPL. Not only is it a positive trend, I think we have some stability in these levels. As we shared in the guidance, we expect charge-offs to remain relatively stable.

Speaker #7: You know this is our lowest net charge-off quarter in almost three years. Our criticized classified ratios are the lowest they've been in two years.

Number three you've seen retention and excitement within the key talent as the earlier question was asked both organizations have retained their critical talent. We believe engagement levels are very high Terry shared with me on his side that they did a whole survey with their Vod and it was actually higher than it was the prior quarter I think.

Speaker #7: It was the third successive quarter of only having $25 million of inflows into MPL. So not only is it a positive trend, I think we have some stability in these levels.

Speaker #7: And, as we shared in the guidance, we expect charge-offs to remain relatively stable.

The teams are energized about the opportunities ahead and on our side. Our team is excited about the new model the autonomy of the ability to grow we've selected the best the best from both sides benefits both sides products and capabilities and so there is a general excitement about what's to come.

Speaker #8: Great. Thanks. I appreciate that.

Jared Shaw: Great, thanks. I appreciate that.

Speaker #1: Thank you. Our next question comes from John Armstrong of RBC Capital Markets. Your line's now open. Please go ahead.

Operator: Thank you. Our next question comes from Jon Arfstrom of RBC Capital Markets. Your line is now open. Please go ahead.

The fourth thing is just revenue growth and synergy cases, I've been cement. It. So we've started to dig in more to the revenue synergies as you know we didn't put anything in the model. There is a lot of opportunity there not just on hold limits, but on sharing the specialties that both sides have built with very little overlap Jamie and his team have worked with Harold to make sure that the cost <unk>.

Speaker #9: Hey, thanks. Good morning.

Jon Arfstrom: Hey, thanks. Good morning.

Speaker #7: Morning, John.

Kevin Blair: Good morning, John.

Speaker #9: Kevin, one for you. Yeah. One for you. More I guess qualitative. What kind of external and internal I guess call it critical feedback are you receiving today compared to maybe what you were hearing three months ago?

Jon Arfstrom: Kevin, one for you. One for you, more I guess, qualitative. What kind of external and internal, I guess, call it critical feedback are you receiving today compared to maybe what you were hearing three months ago? I know it was pretty difficult when the deal was announced, but can you talk a little bit about how that's progressed and what you're focused on and what you're hearing internally and externally today that might still be a little bit critical of the deal?

Speaker #9: I know it was pretty difficult when the deal was announced, but can you talk a little bit about how that's progressed? And kind of, you know, what your focus is on and what you're hearing, you know, internally and externally today that might, you know, still be a little bit critical?

<unk> are aligned with our priorities and realistic and they are.

And so that's super important.

And then the last thing I would tell you is we are continuing to make progress on the regulatory application process that everything's on track I think the discussions have been very constructive and I think it just reinforces the confidence that we have in our teams and building out our risk management organization that can fully meet the expectations of a category for.

Speaker #9: Of the deal?

Speaker #7: Maybe, John, the way I'd answer that is let me give you maybe the five reasons I made the comment that I'm more convinced and convicted today than I was 90 days ago.

Kevin Blair: Maybe, John, the way I'd answer that is let me give you the five reasons I made the comment that I'm more convinced and convicted today than I was 90 days ago. These are maybe the questions we're getting and the responses I'm getting back. Number one, we've had 90 days to build a deeper familiarity with both sides' leadership teams. As we've gone through the due diligence on this, obviously, we didn't get to meet the broader teams on both sides. We've had 90 days to do that. We're building strong relationships with both executive teams, reinforcing culture alignment, and starting to define what our strategic priorities are. Secondly, we're making progress on key decisions. We put that in the deck. Whether it's talent, we made another press release last night of our geographic banking and LOB org structures. We're also making decisions around technology.

Speaker #7: And this is maybe the question we're getting, and the responses I'm getting back is, number one, we've had 90 days to build a deeper familiarity with both sides' leadership teams.

<unk> and so those are the questions, we're getting and Thats what gives me.

Great deal of comfort and.

Speaker #7: And you know, as we've gone through the due diligence on this, obviously we didn't get to meet the broader teams on both sides. We've had 90 days to do that.

Excitement as to the future.

Okay. That's helpful.

I appreciate that and then.

Speaker #7: We're building strong relationships with both executive teams. We're reinforcing cultural alignment and starting to define what our strategic priorities are. Secondly, we're making progress on key decisions.

Jamie one for you also bigger picture.

I heard the comments earlier on the accretion math being unchanged other than the capital comment, but as you dig in a little bit more is there anything that you think could be.

Speaker #7: We put that in the deck, whether it's talent. We made another press release last night regarding our geographic banking and LOB org structures. We're also making decisions around technology.

Maybe too conservative or too aggressive in the initial projections or is it just.

Too early to tell Kevin referenced the revenue synergies, but any anything where you're leaning one way or the other.

Speaker #7: Those decisions are well-defined. They're coming early in the process, so it's removing uncertainty from many of our team members and associates. Number three, you've seen retention and excitement within the key talent.

Kevin Blair: Those decisions are well-defined and coming early in the process, so it's removing uncertainty from many of our team members and associates. Number three, you've seen retention and excitement within the key talent, as the earlier question was asked. Both organizations have retained their critical talent. We believe engagement levels are very high. Terry shared with me on his side that they did a pulse survey with their VOT, and it was actually higher than it was the prior quarter. I think both teams are energized about the opportunities ahead. On our side, our team's excited about the new model, the autonomy, the ability to grow. We've selected the best of best from both sides' benefits, both sides' products and capabilities, so there's a general excitement about what's to come. The fourth thing is just revenue growth and synergy cases have been cemented.

Well, we do feel good about the opportunity for revenue synergies I mean, there are a lot of different areas, where clinical complements the novus novus complements clinical we're pretty excited about those and obviously theyre not in the model, but the other thing I would say is that the model was predicated on consensus in July it was consensus for Synovus plus consensus.

Speaker #7: As the earlier question was asked, both organizations have retained their critical talent. We believe engagement levels are very high. Terry shared with me on his side that they did a whole survey with their VOT, and it was actually higher than it was the prior quarter.

For Pinnacle, and I think as you know us well.

Speaker #7: I think both teams are energized about the opportunities ahead. On our side, our team's excited about the new model, the autonomy, and the ability to grow.

We try to outperform in all scenarios nothing if you talk to Terry or Kevin in July excluding this merger conversation both of them was hey, we see those outlooks two years forward and we expect to outperform I mean, that's just inherent in both of these banks and so I think what youll see from us is.

Speaker #7: We've selected the best of best from both sides' benefits. Both sides' products and capabilities. And so there's a general excitement about what's to come.

Speaker #7: The fourth thing is just revenue growth and synergy cases have been cemented. So we've started to dig in more to the revenue synergies. As you know, we didn't put anything in the model.

Kevin Blair: We've started to dig in more to the revenue synergies. As you know, we didn't put anything in the model. There's a lot of opportunity there, not just on hold limits, but on sharing the specialties that both sides have built with very little overlap. Jamie and his team have worked with Harold to make sure that the cost synergies are aligned with our priorities and realistic, and they are. That's super important. The last thing I would tell you is we're continuing to make progress on the regulatory application process, and everything's on track. I think the discussions have been very constructive. I think it just reinforces the confidence that we have in our teams in building out a risk management organization that can fully meet the expectations of a category four institution.

We move forward is.

That's why you see these decisions being made so quickly you see the people decisions the system's decisions we're leaning in to make sure that we hit the ground running on day, one and we feel really good about our position. So we're trying to minimize any uncertainty minimize any lag and be ready for day, one so that we can.

Speaker #7: There's a lot of opportunity there, not just on hold limits, but on sharing the specialties that both sides have built, with very little overlap.

Speaker #7: Jamie and his team have worked with Harold to make sure that the cost synergies are aligned with our priorities and realistic, and they are.

Speaker #7: And so that's super important. The last thing I would tell you is we're continuing to make progress on the regulatory application process.

Really hit the ground running here in the southeast.

Okay. Okay. That's helpful. Thank you very much.

Speaker #7: Everything's on track. I think the discussions have been very constructive, and I believe it just reinforces the confidence that we have in our teams in building out a risk management organization that can fully meet the expectations of a category four institution.

Thank you John.

Thank you. Our next question comes from abundant opponent of Deutsche Bank. Your line is now open. Please go ahead.

Hey, guys good morning.

Speaker #7: And so those are the questions we're getting, and that's what gives me a great deal of comfort and excitement as to the future.

Kevin Blair: Those are the questions we're getting, and that's what gives me a great deal of comfort and excitement as to the future.

Just on hiring so I think you added low teen hires in the first half of the year and thought you were looking to do similar in the second half and you noted, adding 25 revenue producers during the quarter. So the combined deal as a catalyst for you to add these incremental hires but it seems like you've already started earlier than expected. So.

Speaker #9: Yep. Okay. That's helpful. I appreciate that. And then Jamie, one for you, also bigger picture. I heard the comments earlier on the accretion math being unchanged other than the capital comment.

Jon Arfstrom: Okay. That's helpful. I appreciate that. Jamie, one for you, also bigger picture. I heard the comments earlier on the accretion math being unchanged other than the capital comment. As you dig in a little bit more, is there anything that you think could be maybe too conservative or too aggressive in the initial projections, or is it just too early to tell? Kevin referenced the revenue synergies, but anything where you're leaning one way or the other?

So could you just provide a bit more color on what areas of the hires are in and how we should be viewing the accelerated hiring going into the deal close.

Speaker #9: But as you dig in a little bit more, is there anything that you think could be maybe too conservative or too aggressive in the initial projections?

Yes so.

Kind of a new definition Bernie on this quarter, we adopted the revenue producer definition that.

Speaker #9: Or is it just too early to tell? Kevin referenced the revenue synergies, but is there anything where you're leaning one way or the other?

Users and that's where the 25 comes from our initial recommendations, where we're talking about adding 45 revenue producers in 2020 were specifically related to commercial middle market specialty and private wealth banking. This new definition has expanded which would include some additional.

Speaker #7: Well, we do feel good about the opportunity for the revenue synergies. I mean, there are a lot of different areas where, you know, Pinnacle complements Synovus.

Kevin Blair: We do feel good about the opportunity for the revenue synergies. There are a lot of different areas where, you know, Pinnacle complements Synovus, Synovus complements Pinnacle. We're pretty excited about those. Obviously, they're not in the model. The other thing I would say is that the model was predicated on consensus in July. It was consensus for Synovus plus consensus for Pinnacle. I think, as you know us well, you know, we try to outperform in all scenarios. I think if you had talked to Terry or Kevin in July, excluding this merger conversation, both of them would say, "We see those outlooks, you know, two years forward, and we expect to outperform." I mean, that's just inherent in both of these banks.

Speaker #7: Synovus complements Pinnacle. We're pretty excited about those. And obviously, they're not in the model. But the other thing I would say is that the model is predicated on consensus in July.

Speaker #7: It was consensus for Synovus, plus consensus for Pinnacle. And I think, as you know us well, we try to outperform in all scenarios.

Roll so those are kind of apples and oranges. So I would just reference back to the slide that we put out about a month ago that said each year on commercial private wealth and our specialty businesses. We were targeting adding 45 FTE next year, we will increase that number by another 35, which will push it pushes up to 80%.

Speaker #7: And I think if you had talked to Terry or Kevin, in July, excluding this merger conversation, both of them would say, "We see those outlooks, you know two years forward, and we expect to outperform." I mean, that's just inherent in both of these banks.

And then thereafter, depending on our success there we put 35, plus so just think 80 plus in 2027 and Thats. The goal as I mentioned our teams are in place and those individuals are already beginning the process and running the process. The pinnacle runs for identifying and starting to attract top talent from around the footprint not only.

Speaker #7: And so I think what you'll see from us as we move forward is, you know, that's what you see: these decisions being made so quickly.

Kevin Blair: I think what you'll see from us as we move forward is, you know, that's what you, you know, you see these decisions being made so quickly. You see the people decisions, the systems decisions. You know, we're leaning in to make sure that we hit the ground running on day one, and we feel really good about our position. We're trying to minimize any uncertainty, minimize any lag, and be ready for day one so that we can, really, hit the ground running here in the Southeast.

Speaker #7: You see the people decisions, the systems decisions. You know we're leaning in to make sure that we hit the ground running on Day One.

Speaker #7: And we feel really good about our position. So we're trying to minimize any uncertainty, minimize any lag, and be ready for day one so that we can really hit the ground running here in the Southeast.

And the geographic banking space, but also in specialty and again I am quite pleased with the leadership team. We have I am quite pleased in where we are in the org structures and I think it is going to allow them to again in fourth quarter, starting to make some of those hires.

Speaker #9: Yeah. Okay. That's helpful. Thank you very much.

Jon Arfstrom: Yeah, okay. That's helpful. Thank you very much.

Yeah.

Okay I appreciate that color and then maybe just staying on this theme obviously the pro forma bank the growth profile.

Speaker #7: Thank you, John.

Kevin Blair: Thank you, Jennifer.

Speaker #1: Thank you. Our next question comes from Bernard von Gesicki of Deutsche Bank. Your line's now open. Please go ahead.

Operator: Thank you. Our next question comes from Bernard Von Gizycki of Deutsche Bank. Your line's now open. Please go ahead.

When we think about legacy pinnacle hiring over 600 of these revenue producers over the past five years.

Speaker #10: Hi. Hey, guys. Good morning. Just on hiring, so I think you added low teen hires in the first half of the year. And thought you were looking to do similar in the second half.

Kevin Blair: Hey, guys. Good morning. Just on hiring, I think you added low-teens hires in the first half of the year and thought you were looking to do similar in the second half. You noted adding the 25 revenue producers during the quarter. Is the combined deal a catalyst for you to add these incremental hires, which seems like you already started earlier than expected? Could you just provide a bit more color on what areas the hires are in and how we should be viewing the accelerated hiring going into the deal close?

You expect the pro forma bank to hire nearly 500.

These producers over the next two years.

So the legacy Pinnacle pipeline for those hires were expected to bring in a total of about $19 billion of assets and from here, it's probably another $9 billion or so.

Speaker #10: And you noted adding the 25 revenue producers during the quarter. So, the combined deal is a catalyst for you to add these incremental hires, but it seems like you've already started earlier than expected.

What are your expectations for the ramp up in asset and deposit gathering from your accelerated hiring plans and any timing you can provide on that.

Speaker #10: So could you just provide a bit more color on what areas the hires are in and how we should be viewing the accelerated hiring going into the deal close?

I mean, it's going to ramp up I mean look if you just go and look at the two consensus numbers and just look at what 'twenty six 'twenty seven would've meant clinical would be at that high single digit low double digit number and synovus would've been mid single digit and so on aggregate. It would say that we're about six percentage points in growth and 26%.

Speaker #7: Yeah. So, kind of a new definition, Bernie. In this quarter, we adopted the revenue producer definition that Pinnacle uses, and that's where the 25 comes from.

Kevin Blair: Yeah. Kind of a new definition, Bernie, on this quarter. We adopted the revenue producer definition that Pinnacle uses, and that's where the 25 comes from. Our initial recommendations where we were talking about adding 45 revenue producers in 2025 were specifically related to commercial, middle market, specialty, and private wealth banking. This new definition has expanded, which would include some additional roles. Those are kind of apples and oranges. I would just reference back to the slide that we put out about a month ago that said each year on commercial, private wealth, and our specialty businesses, we were targeted in adding 45 FTE. Next year, we will increase that number by another 35, which will push us up to 80. Thereafter, depending on our success there, we put 35 plus. Just think 80 plus in 2027. That's the goal.

Speaker #7: You know our initial recommendations were that we were talking about adding 45 revenue producers in 2025, specifically related to commercial middle market, specialty, and private wealth banking.

Seven what Youll see 26 should be higher than that as some of those new hires start to come on board and then compounding that into 'twenty seven it should be higher than that and then by year. Three I think we would achieve some level of parity as it relates to growth and our goal would have that growth be in that high single digit area.

Speaker #7: This new definition is expanded, which would include some additional roles. So those are kind of apples and oranges. So I would just reference back to the slide that we put out about a month ago that said each year on commercial, private wealth, and our specialty businesses, we were targeting adding 45 FTE.

Great. Thanks for taking my questions.

Thank you Brian.

Speaker #7: Next year, we will increase that number by another 35, which will push us up to 80. Then, thereafter, depending on our success there, we will add 35 plus.

And Keith next question comes from Michael Rose of Raymond James.

So open please go ahead.

Speaker #7: So just think 80 plus in 2027. That's the goal. And as I mentioned, our teams are in place, and those individuals are already beginning the process.

Hey, good morning, everyone. Thanks for taking my questions.

Hey, maybe for Jamie just as we look at the Paydowns. This quarter was there any kind of acceleration there and then assuming kind.

Kevin Blair: As I mentioned, our teams are in place, and those individuals are already beginning the process and running the process that Pinnacle runs for identifying and starting to attract top talent from around the footprint, not only in the geographic banking space, but also in specialty. Again, I'm quite pleased with the leadership team we have. I'm quite pleased in where we are in the org structures. I think it's going to allow them to begin in fourth quarter starting to make some of those hires.

Speaker #7: And running, the process that Pinnacle runs for identifying and starting to attract top talent from around the footprint, not only in the geographic banking space, but also in specialty.

Kind of realize the forward curve.

This quarter and into 2026 do you expect any moderation in that level of pay downs.

Speaker #7: And again, I'm quite pleased with the leadership team we have. I'm quite pleased with where we are in the org structures, and I think it's going to allow them, again, in Q4, to start making some of those hires.

We've generally seen pretty good loan production this quarter.

The net numbers.

<unk> pointed a little bit just just given the elevated pay downs we've had some.

The banks and the South Asia comment that they wouldn't expect paydowns to decelerate and in fact can actually increase so youre going to have to run higher a little bit harder, but clearly you guys are hiring.

Speaker #8: Okay. I appreciate

Kevin Blair: Okay. I appreciate that color. Maybe just staying on this theme, obviously, the pro forma bank, the growth profile, you know, when we think about legacy Pinnacle, hiring over 600 of these revenue producers over the past five years, you expect the pro forma bank to hire nearly 500 of these producers over the next two years. The legacy Pinnacle pipeline for those hires was expected to bring in a total of about $19 billion of assets, and from here, it's probably another $9 billion or so. What are your expectations for the ramp-up in asset and deposit gathering from your accelerated hiring plans and any timing you can provide on that?

Speaker #10: that color. And then maybe just staying on this theme, obviously, the pro forma bank, the growth profile, you know when we think about legacy Pinnacle, you know hiring over 600 of these revenue producers over the past five years, you know, you expect the pro forma bank to hire nearly 500 of these producers over the next two years.

<unk> had a pretty a pretty robust pace that's expected to continue over the next few years.

Previous session. So I just wanted to get a sense for production versus payoff trends as we think about the forward curve and potentially on a standalone basis point growth could look like next year. Thanks.

Speaker #10: So the legacy Pinnacle pipeline for those hires was expected to bring in a total of about $19 billion of assets. And, you know, from here, it's probably another $9 billion or so.

Yes, Michael that's a great question.

As we look at payoffs and Paydowns good they've been elevated and that's been what's been slowing us down on overall loan growth.

Speaker #10: Just what are your expectations for the ramp-up in asset and deposit gathering from your accelerated hiring plans? And is there any timing you can provide on that?

It's hard to predict exactly what will happen there I mean, we would expect probably to see a little bit of moderation there but.

Speaker #7: I mean, it's going to ramp up. Look, if you just go and look at the two consensus numbers and just look at what '26 and '27 would have meant, Pinnacle would be at that high single-digit, low double-digit number.

Kevin Blair: I mean, it's going to ramp up. If you just go and look at the two consensus numbers and just look at what 2026 and 2027 would have meant, Pinnacle would be at that high single-digit, low double-digit number, and Synovus would have been mid-single-digit. On aggregate, it would say that we're about 6% in growth in 2026 and 2027. What you'll see, 2026 should be higher than that as some of those new hires start to come on board. Compounding that into 2027, it should be higher than that. By year three, I think we would achieve some level of parity as it relates to growth. Our goal would be to have that growth be in that high single-digit area.

We would have said that before too I believe.

But I think the real message here for US is the production when you look at the production.

This quarter and last quarter.

Speaker #7: And Synovus would have been mid-single-digit. And so on aggregate, it would say that we're about 6 percentage points in growth in '26 and '27. What you'll see is that '26 should be higher than that as some of those new hires start to come on board.

A lot of our key businesses and Thats, a real positive trend I mean, if you look at the wholesale bank, we're really at peak levels up 70% from a year ago year to date numbers up about a 100% from prior year.

Speaker #7: And then compounding that into '27, it should be higher than that. And then by year three, I think we would achieve some level of parity as it relates to growth.

Commercial banking production year to date is up 19% versus prior year and then when we look forward for the fourth quarter pipelines are up 14% quarter over quarter. So we see a lot of tailwind and momentum as far as the team, which is great to see I mean, Kevin just walk through everything we're going through.

Speaker #7: And our goal would have that growth be in that high single-digit area.

Speaker #8: Great. Thanks for taking my questions.

Kevin Blair: Great. Thanks for taking my questions.

Speaker #7: Thank you, Bernie.

Kevin Blair: Thank you, Bernard.

Speaker #1: Thank you. Our next question comes from Michael Rose of Raymond James. Your line's now open. Please go ahead.

Operator: Thank you. Our next question comes from Michael Rose of Raymond James. Your line is now open. Please go ahead.

Making these decisions on a merger, but the team is focused on our clients and we are delivering and so we expect continued strength in production and hopefully that leads to accelerated growth.

Speaker #9: Hey, good morning, everyone. Thanks for taking my questions. Hey, maybe for Jamie, just as we look at the paydowns this quarter, was there any kind of acceleration there?

Kevin Blair: Hey, good morning, everyone. Thanks for taking my questions. Maybe for Jamie, just as we look at the paydowns this quarter, was there any kind of acceleration there? Assuming we could realize the forward curve this quarter and into 2026, do you expect any moderation in that level of paydowns? I think we've generally seen pretty good loan production this quarter, but I think the net numbers have disappointed a little bit, just given the elevated paydowns. We've had some other banks in the Southeast comment that they wouldn't expect paydowns to decelerate at all. They, in fact, potentially increase. You are going to have to run a little bit harder. Clearly, you guys are hiring at a pretty robust pace that's expected to continue over the next few years, as was just mentioned in the previous question.

Very helpful. And then maybe just one more from me for Kevin.

Speaker #9: And then assuming we do you know kind of realize the forward curve, this quarter and into 2026, do you expect any moderation in that level of paydowns?

Pretty robust expected hiring numbers from the combined company as we move forward, but it seems like every bank.

Speaker #9: I think we've generally seen pretty good loan production this quarter, but I think the net numbers have disappointed a little bit, just given the elevated paydowns.

Southeast is trying to hire lenders can you just talk about the competitive aspect.

Speaker #9: We've had some some other banks in the Southeast just comment that they wouldn't expect paydowns to decelerate. And all they, in fact, potentially increase.

And hiring the people over the next couple of years.

What impact competition could have and kind of meeting those goals I think there's some concern out there that.

Speaker #9: So you're going to have to run higher, a little bit harder, but clearly you guys are hiring at a pretty robust pace that's expected to continue over the next few years, as was just mentioned in the previous question.

Obviously, the two hiring models are a little bit different I know you guys are emerging and others that base versus bonus consideration, there, but but as competition heats up for for talent.

Speaker #9: So I just wanted to get a sense for, you know, production versus payoff trends as we think about, you know, the forward curve and potentially on a standalone basis, what growth could look like next year.

Kevin Blair: I just wanted to get a sense for production versus payoff trends as we think about the forward curve and potentially on a standalone basis, what growth could look like next year. Thanks.

I think there might be a little bit of skepticism that you guys can actually meet those numbers.

What the cost would be can you just kind of step back and address that in a broadly.

Speaker #9: Thanks.

Speaker #7: Yeah. Michael, it's a great question. As we look at payoffs and paydowns, clearly they've been elevated, and that's been what's slowing us down on overall loan growth.

Yes, Michael.

Kevin Blair: Yeah, Michael, it's a great question. As we look at payoffs and paydowns, clearly they've been elevated, and that's been what's been slowing us down on overall loan growth. It's hard to predict exactly what will happen there. We would expect probably to see a little bit of moderation there, but we would have said that before too, I believe. I think the real message here for us is the production. You look at the production this quarter and last quarter, and a lot of our key businesses, and it's a real positive trend. If you look at the wholesale bank, we're really at peak levels, up 70% from a year ago. Year-to-date numbers are up about 100% from prior year. Commercial banking production year to date is up 19% versus prior year. When we look forward for the fourth quarter, pipelines are up 14% quarter over quarter.

Fair point.

You listen to other banks and there is one strategy everybody who is going to go out and hire more people I would I would just.

Speaker #7: You know it's hard to predict exactly what will happen there. I mean, we would expect probably to see a little bit of moderation there.

Look back at the history of Pinnacle and their ability to continuously do this and their model is one where they hire individuals from organizations and then they ask those individuals' to lift up other folks that work there that are of the same quality and they are able to bring over those individuals and teams not an onesie twosies hires.

Speaker #7: But you know we would have said that before too, I believe. But I think the real message here for us is the production. I mean, you look at the production this quarter and last quarter, and a lot of our key businesses and it's a real positive trend.

And that's the big difference that we'll make as we enter into that hiring strategy is trying to get teams of individuals' versus onesie Twosies. What gives me great confidence number one is again the track record that pinnacle has exhibited and that includes the comp structure that you referenced.

Speaker #7: I mean, if you look at the wholesale bank, we're really at peak levels. I mean, up 70% from a year ago, year-to-date numbers are up about 100% from the prior year.

Speaker #7: Commercial banking production year to date is up 19% versus the prior year. Additionally, when we look forward to the fourth quarter, pipelines are up 14% quarter over quarter.

A larger base less variable comp and also tied to the top of the house number to what we know the number one factor that people are moving is generally not compensation. They want a platform where they can fully serve their clients without having a bunch of bureaucracy.

Speaker #7: So, we see a lot of tailwinds and momentum as far as the team, which is great to see. I mean, Kevin just walked through everything we're going through, making these decisions on the merger.

Kevin Blair: We see a lot of tailwinds and momentum as far as the team, which is great to see. Kevin just walked through everything we're going through, making these decisions on the mergers, but the team is focused on our clients, and we're delivering. We expect continued strength in production, and hopefully, that leads to accelerated growth.

Speaker #7: But the team is focused on our clients, and we're delivering. We expect continued strength in production, and hopefully that leads to accelerated growth.

We are both building as a stronger company that offers that to any perspective team member will have bigger balance sheets will have better product capabilities.

And we will still provide them with an environment that.

Speaker #8: Very helpful. And then maybe just one more from me. For Kevin, you know pretty robust expected hiring numbers from the combined companies we move forward.

Kevin Blair: Very helpful. Maybe just one more for me, for Kevin. You know, pretty robust expected hiring numbers from the combined companies as we move forward. It seems like every bank, particularly in the Southeast, is trying to hire lenders. Can you just talk about the competitive aspect and hiring that many people over the next couple of years and what impact competition could have in kind of meeting those goals? I think there's just some concern out there that obviously the two hiring models are a little bit different. I know you guys are merging. I know there's the base versus bonus consideration there. As competition kind of heats up for talent, I think there might be a little bit of skepticism that you guys can actually meet those numbers or what the cost would be. Can you kind of step back and address that more broadly? Thanks.

Tries to remove all the bureaucracy and red tape that will allow them to do what they're doing that's the big difference and Thats why the people that both banks have been able to hire generally coming from the larger banks that are looking for that environment and that will not change will there be a greater competition I'm sure, but as long as we offer those value propositions.

Speaker #8: But it seems like every bank in the Southeast is trying to hire lenders. Can you just talk about the competitive aspect and hiring that many people over the next couple of years?

Speaker #8: And you know what impact you know competition you know could have in kind of meeting those goals? I think there's just some concern out there that you know the obviously the two hiring models are a little bit different.

I think it's going to continue to provide a gateway for people to want to join our company.

I appreciate all the color thanks for taking my questions.

Speaker #8: I know you guys are merging. I know there's the base versus bonus consideration there. But as competition kind of heats up for talent, you know, I think there might be a little bit of skepticism that you guys can actually meet those numbers or what the cost would be.

Thank you. Our next question comes from Gary Tenner of D. A Davidson. Your line is now open. Please go ahead.

Speaker #8: Can you kind of, you know, step back and address that more broadly? Thanks.

Thanks, Good morning.

Jamie you kind of addressed part of my question with the comment about the pipeline being up 14% quarter over quarter, but just to dig in a little more on the kind of the fourth quarter growth outlook.

Speaker #7: Yeah. You know, Michael, it's a fair point. You listen to other banks, and there's one strategy: everybody was going to go out and hire more people.

Kevin Blair: Yeah. You know, Michael, it's a fair point. I mean, you listen to other banks, and there's one strategy. Everybody was going to go out and hire more people. I would just, you know, look back at the history of Pinnacle and their ability to continuously do this. Their model is one where they hire individuals from organizations, and then they ask those individuals to lift up other folks that work there that are of the same quality, and they're able to bring over those individuals in teams, not in onesie-twosie hires. That's the big difference that we'll make as we enter into that hiring strategy, trying to get teams of individuals versus onesie-twosies. What gives me great confidence, number one, is again, the track record that Pinnacle has exhibited.

Speaker #7: I would I would just you know look back at the history of Pinnacle and their ability to continuously do this. And their model is one where they hire individuals from organizations and then they ask those individuals to lift up other folks that work there, that are of the same quality and they're able to bring over those individuals in teams, not in onesie, twosie hires.

To get to that kind of four 5% number for the year. It puts you somewhere around six 5%, maybe a little better than that in the fourth quarter. So how much of that.

Assumes a normalization of pay offs closer to the second quarter level, which I think it was $1 four versus 1 billion eight this quarter.

Gary.

Speaker #7: And that's the big difference that we'll make as we enter into that hiring strategy is trying to get teams of individuals versus onesie, twosies.

Good question and in our model, we have elevated production levels, we have strength in the fourth quarter.

Speaker #7: What gives me great confidence, number one, is again the track record that Pinnacle has exhibited. And that includes the comp structure that you referenced, where it's a larger base, less variable comp, and also tied to the top of house.

And we have pay offs remaining elevated but not quite at the level of the third quarter and so.

We think that will net 1% to 2% loan growth as you said.

Kevin Blair: That includes the comp structure that you referenced, where it's larger base, less variable comp, and also tied to the top of house. Number two, what we know, the number one factor that people are moving is generally not compensation. They want a platform where they can fully serve their clients without having a bunch of bureaucracy. What we are both building is a stronger company that offers that to any prospective team member. We'll have bigger balance sheets. We'll have better product capabilities, and we'll still provide them with an environment that tries to remove all the bureaucracy and red tape that will allow them to do what they're doing. That's the big difference. That's why the people that both banks have been able to hire are generally coming from the larger banks that are looking for that environment. That will not change. Will there be a greater competition?

And we think that that will come through with our with our core businesses I mean the trends.

Speaker #7: Number two, what we know: the number one factor that people are moving for is generally not compensation. They want a platform where they can fully serve their clients without having a bunch of bureaucracy.

It kind of bounce around a little bit over the last couple of quarters in the third quarter, we saw a lot of strength in our <unk>.

Commercial real estate book diverse kind of term lending, which is a great positive.

Speaker #7: What we are both building is a stronger company that offers that to any prospective team member. We'll have bigger balance sheets. We'll have better product capabilities.

But then you see the strength in the pipelines in C&I in the fourth quarter. So.

It's a diverse strategy, but we feel good about our expectations for this quarter.

Speaker #7: And we'll still provide them with an environment that tries to remove all the bureaucracy and red tape, allowing them to do what they're doing.

Okay.

Maybe just a follow up in terms of the pipeline build over the last quarter.

Just as a sense of how much of that is kind of ongoing.

Speaker #7: That's the big difference, and that's why the people that both banks have been able to hire are generally coming from the larger banks that are looking for that environment.

Increased comfort by your customers as it relates to the economy.

Speaker #7: And that will not change. Will there be greater competition? I'm sure. But as long as we offer those value propositions, I think it's going to continue to provide a gateway for people to want to join our company.

Tariffs et cetera versus other.

Kevin Blair: I'm sure. As long as we offer those value propositions, I think it's going to continue to provide a gateway for people to want to join our company.

Growth dynamics.

Kind of a tough question I guess, but how much of it is.

Increased comfort generally.

In terms of the underlying economic backdrop.

Speaker #8: I I appreciate all the color. Thanks for taking my questions.

Kevin Blair: I appreciate all the color. Thanks for taking my questions.

I'll take that I don't know that we can go through our pipeline and designate the purpose or the reasoning behind our new capital opportunity, but I always like to go back to our quarterly client survey and what was interesting for me this quarter, given again, another quarter of geopolitical risk and more.

Speaker #1: Thank you. Our next question comes from Gary Turner of PA Davidson. Your line's now open. Please go ahead.

Operator: Thank you. Our next question comes from Gary Tenner of D.A. Davidson. Your line's now open. Please go ahead.

Speaker #9: Thanks. Good morning. Jamie, you kind of addressed part of my question with the comment about the pipelines being up 14% quarter over quarter. But just to dig in a little more on the kind of the fourth quarter, growth outlook, I mean, you know to get to that kind of four and a half percent number for the year, it puts you somewhere around six and a half percent, maybe a little better than that in the fourth quarter.

Jon Arfstrom: Thanks. Good morning. Jamie, you kind of addressed part of my question with the comment about the pipelines being up 14% quarter over quarter. Just to dig in a little more on the kind of the fourth quarter growth outlook, to get to that kind of 4.5% number for the year, it puts you somewhere around 6.5%, maybe a little better than that in the fourth quarter. How much of that assumes a normalization of payoffs closer to the second quarter level, which I think was $1.4 billion versus $1.8 billion this quarter?

Talks around tariffs generally our clients feel better today than they felt entering the year and I say that because one of the questions. We asked our clients.

What are your expectations for the next 12 months greater the same or less than it was as we entered 2025 and ironically, 20% of our folks said that they expected it to be worse off 40% expected to be better than 40% thought it would be about the same so I would submit to you generally people are more optimistic.

Speaker #9: So, how much of that assumes a normalization of payoffs closer to the second quarter level, which I think was $1.4 billion versus $1.8 billion this quarter?

Speaker #7: Gary, you know it's a good question. In our model, we have elevated production levels. We have strength in the fourth quarter, and we have payoffs remaining elevated, but not quite at the level of the third quarter.

Kevin Blair: Gary, you know, it's a good question. In our model, we have elevated production levels. We have strength in the fourth quarter, and we have payoffs remaining elevated, but not quite at the level of the third quarter. We think that'll net to 1% to 2% loan growth, as you said, and we think that will come through with our core businesses. The trends have kind of bounced around a little bit over the last couple of quarters. In the third quarter, we saw a lot of strength in our commercial real estate book, diverse kind of term lending, which is a great positive. You see the strength in the pipelines and C&I in the fourth quarter. It's a diverse strategy, but we feel good about our expectations for this quarter.

And that coincides with some of the other data points that we look at we also ask what your business activity going to look like for the next 12 months, 37% felt they would be the same 42% of our client's expected business activity to increase so maybe thats, partly because were in the southeast that we're continuing to see a constructive environment. The one caveat that I.

Speaker #7: And so you know we think that'll net to 1 to 2% loan growth, as you said. And we think that that'll come through with our core businesses.

Would say that came out of the survey that was maybe concerning is that many people continue to see the raw input prices increase we saw 46% of our clients that input prices were increasing but only about 22% could push those increased prices out to their end user and so I think what we are hearing and seeing is that youll see some margin compression.

Speaker #7: I mean, the trends you know have kind of bounced around a little bit over the last couple of quarters. In the third quarter, we saw a lot of strength in our commercial real estate book and diverse term lending, which is a great positive.

Speaker #7: But then you see the strength in the pipelines and CNI in the fourth quarter. So you know it's a diverse strategy, but we feel good about you know our expectations for this quarter.

But I don't think that will take.

Capital demand off the table I think people generally feel constructive we also have an environment now where people generally think interest rates will decline and I think that has been correlated to line utilization and a little bit of growth that may stimulate the economy. So I would submit to you is this quarter is consistent with last quarter people are generally optimistic.

Speaker #9: Okay. And maybe just a follow-up in terms of the pipeline build over the last quarter. Just a sense of how much of that is kind of ongoing you know increased comfort by your customers as it relates to you know to the economy and tariffs, etc.

Jon Arfstrom: Okay. Maybe just a follow-up. In terms of the pipeline build over the last quarter, just a sense of how much of that is kind of ongoing, you know, increased comfort by your customers as it relates, you know, to the economy and tariffs, etc., versus other growth dynamics. I get kind of a tough question, I guess. How much of it is just increased comfort generally, in terms of the underlying economic backdrop?

I don't think Theres anything in our pipeline that suddenly the dam is broken and people are pulling things out of the pipeline or.

Speaker #9: versus other you know growth dynamics? I get kind of a tough, tough question, I guess. But how much of it is just increased comfort generally in terms of the underlying economic backdrop?

Conversely, putting things in I think it's just normal growth, but people are more optimistic than they are pessimistic.

Speaker #7: Yeah. I'll take that. You know, I don't know that we can go through our pipeline and designate the purpose or the reasoning behind a new capital opportunity.

Kevin Blair: I'll take that. I don't know that we can go through our pipeline and designate the purpose or the reasoning behind a new capital opportunity. I always like to go back to our quarterly client survey. What was interesting for me this quarter, given, again, another quarter of geopolitical risk and more talks around tariffs, generally, our clients feel better today than they felt entering the year. I say that because one of the questions we ask our clients was, "Are your expectations for the next 12 months greater, the same, or less than it was as we entered 2025?" Ironically, 20% of our folks said that they expected it to be worse, while 40% expected it to be better, and 40% thought it would be about the same. I would submit to you, generally, people are more optimistic.

Good color. Thank you.

Thank you.

Next question comes from Casey Haire of Autonomous Research. Your line is now open. Please go ahead.

Speaker #7: But I always like to go back to our quarterly client survey. And what was interesting for me this quarter, given, again, another quarter of geopolitical risk and more talks around tariffs, is that generally our clients feel better today than they felt entering the year.

Great. Thanks, good morning, everyone.

Question on sort of the pro forma yes.

Hey, good morning.

A question on the pro forma balance sheet you guys obviously.

Speaker #7: And I say that because one of the questions we ask our clients was, "Are your expectations for the next 12 months greater, the same, or less than they were as we entered 2025?" Ironically, 20% of our folks said that they expected it to be worse, while 40% expected it to be better, and 40% thought it would be about the same.

A few months here to look at the.

The combined entity.

In prior <unk>.

You've seen management teams there like maybe we don't need this loan portfolio and sort of make tweaks on the balance sheet I was just wondering.

If you guys have.

Speaker #7: So I would submit to you, generally, people are more optimistic. And that coincides with some of the other data points that we look at.

Yes.

On further review <unk> seen some things on the pro forma balance sheet that you might not like or might want to divest or just small tweaks or the overall balance sheet.

Kevin Blair: That coincides with some of the other data points that we look at. We also ask, "What's your business activity going to look like for the next 12 months?" 37% felt it would be the same. 42% of our clients expected business activity to increase. Maybe that's partly because we're in the Southeast that we're continuing to see a constructive environment. The one caveat that I would say that came out of the survey that was maybe concerning is that many people continue to see the raw input prices increase. We saw 46% of our clients said input prices were increasing, but only about 22% could push those increased prices out to their end user. I think what we are hearing and seeing is that you'll see some margin compression. I don't think that will take capital demand off the table. I think people generally feel constructive.

Speaker #7: We also ask, "What's your business activity going to look like for the next 12 months?" 37% felt it would be the same. 42% of our clients expected business activity to increase.

We have not we continue as we dive into these balance sheets, they really fit well together, we think that.

Speaker #7: So maybe that's partly because we're in the Southeast that we're continuing to see a constructive environment. The one caveat that I would say that came out of the survey that was maybe concerning is that many people continue to see the raw input prices increase.

The mix of C&I, and CRE with little bit of consumer we think that at all.

Well there is nothing that we would expect to divest theres nothing that we at this point things that we will restrain our hold back.

Speaker #7: We saw 46% of our clients said input prices were increasing, but only about 22% could push those increased prices out to their end user.

We think that we're well positioned.

For the next few years here in the southeast to drive.

Speaker #7: And so I think what we are hearing and seeing is that you'll see some margin compression. But I don't think that will take capital demand off the table.

<unk> growth.

The only thing I would say is our stance is still holds that we will like as you head into a crossing a $100 billion.

Speaker #7: I think people generally feel constructive. We also have an environment now where people generally think interest rates will decline and I think that has been correlated to line utilization and a little bit of growth.

Kevin Blair: We also have an environment now where people generally think interest rates will decline. I think that has been correlated to line utilization and a little bit of growth that may stimulate the economy. I would submit to you as this quarter is consistent with last quarter, people are generally optimistic. I don't think there's anything in our pipeline that suddenly the dam is broken and people are pulling things out of the pipeline or, conversely, putting things in. I think it's just normal growth, but people are more optimistic than they are pessimistic.

There will be liquidity considerations that we still believe that the debt issuances that we live in a merchant model that does make sense.

Speaker #7: That may stimulate the economy. So I would submit to you, as this quarter is consistent with last quarter, people are generally optimistic. I don't think there's anything in our pipeline that suddenly the dam is broken and people are pulling things out of the pipeline or, you know, conversely, putting things in.

Obviously, we will assess those as we go through the next few years, but.

That's really the only balance sheet change would be on the liquidity side it would be.

Kind of a measured pace of <unk>.

Debt issuances over time.

As we kind of look at loan and deposit growth and then potentially a little bit of Remixing of our securities portfolio as you think about LCR.

Speaker #7: I think it's just normal growth. But people are more optimistic than they are pessimistic.

Speaker #9: Good Good color. Thank you.

Jon Arfstrom: Good color. Thank you.

Okay, Great and then Jamie just one more follow up for you.

Speaker #1: Thank you. Our next question comes from Casey Hare of Autonomous Research. Your line's now open. Please go ahead.

Operator: Thank you. Our next question comes from Casey Haire of Autonomous. Your line's now open. Please go ahead.

On the merger math so the.

The rate marks.

Within Synovus you guys have it just under $900 million, that's amortized across 10 years, which seems a little long.

Speaker #9: Great. Thanks. Good morning, everyone. My question on sort of the pro forma yeah, morning. Question on the pro forma balance sheet. You guys have obviously had a few months here to look at the the combined entity.

Jon Arfstrom: Great. Thanks. Good morning, everyone.

Kevin Blair: Morning, Casey.

Jon Arfstrom: Good morning.

Kevin Blair: Question on the pro forma balance sheet. You guys obviously have a few months here to look at the combined entity. In prior MOEs, we've seen management teams say, "All right, like, you know, maybe we don't need this loan portfolio," and make tweaks on the balance sheet. I'm just wondering if you guys have, upon further review, seen some things on the pro forma balance sheet that you might not like or might want to divest or just small tweaks for the overall balance sheet. Casey, we have not. We continue, as we dive into these balance sheets, they really fit well together. We think that the mix of CNI and CRE with a little bit of consumer, we think that it all fits well. There's nothing that we would expect to divest. There's nothing that we at this point think that we will restrain or hold back.

The average term of the loan book is three or four years.

Why so conservative and Shouldnt that come in should those rate marks come in a little bit faster.

Speaker #9: In prior MOEs, we've seen management teams there, like, you know, maybe we don't need this loan portfolio and sort of make tweaks.

Yes, we have different amortization period for different parts of the rate Mark.

You look at the <unk>.

Speaker #9: On the balance sheet, I'm just wondering if you guys have have you know upon further review, seen some things on the pro forma balance sheet that you might not like or might want to divest or you know just small tweaks for the overall balance sheet.

Ci.

Eight year, if at all the maturity of 15 year that our loan portfolio with 10 year.

So we tried to be as appropriate if possible and how we looked at those and then I guess on the loan portfolio with some of the years digits. So it'll be a little bit front loaded on that.

Speaker #9: You know.

Speaker #7: Kathy, we have not. We continue, you know, as we dive into these balance sheets. They really fit well together. We think that, you know, the mix of CNI and CRE with a little bit of consumer, we think that it all fits well.

And so we feel like those remarks, where are our remain appropriate.

<unk>.

Good indication of how they will come through.

<unk>.

Yes.

Speaker #7: There's nothing that we would expect to divest. There's nothing that we at this point think that we will restrain or hold back. We think that we're well positioned to, you know, for the next few years here in the Southeast to drive client growth.

That's all I'll say about that.

Great. Thank you.

Yep.

Kevin Blair: We think that we're well positioned for the next few years here in the Southeast to drive client growth. The only thing I would say is our stance still holds that we will, as you head into crossing $100 billion, there will be liquidity considerations. We still believe that the debt issuances that we put in our merger model, that those make sense. Obviously, we will assess those as we go through the next few years. That's really the only balance sheet change would be on the liquidity side. It would be a kind of measured pace of debt issuances over time as we look at loan and deposit growth, and then potentially a little bit of remixing of the securities portfolio as you think about LCR.

Thank you next.

Our next question comes from Anthony Elian from J P. Morgan.

Speaker #7: The only thing I would say is our stance, you know, still holds that we would like, you know, as you head into crossing $100 billion, there will be liquidity considerations.

Please go ahead.

Okay.

Hi, everyone on loan growth you called out production was about $2 billion for a second straight quarter and I'm wondering I'm wondering if you can give us more color on any specific areas or drivers of that and that has driven the strong production levels and how sustainable you think that level is.

Speaker #7: So we still believe that you know the debt issuances that we put in our merge model that those make sense. Obviously, we will assess those as we go through the next few years.

Speaker #7: But that's really the only balance sheet change would be on the liquidity side. It would be, you know, kind of a measured pace of debt issuances over time, you know, as we kind of look at loan and deposit growth.

Yes, Tony it's.

Really.

It's not any specific area, that's driving the growth I mean, when I look at our areas.

I look at the production by group, we saw strong production in middle market banking. This quarter, we saw strong production in our specialty lending area CIB stayed on par a little over $100 million senior.

Speaker #7: And then potentially a little bit of remixing of the securities portfolio as you think about LCR.

Speaker #9: Okay, great. And then, Jamie, just one more follow-up for you. On the merger math, so the rate marks within Synovus, you guys have just under $900 million.

Jon Arfstrom: Okay. Great. Jamie, just one more follow-up for you on the merger math. The rate marks within Synovus, you guys have just under $900 million. That's amortized across 10 years, which seems a little long. I think the average term in the Synovus loan book is three or four years. Why so conservative? Shouldn't that come in? Shouldn't those rate marks come in a little bit faster?

Senior housing had a really strong month in production CRE.

CRE has picked up we had about $500 million in production. This quarter a lot of retail that was up about 40% quarter on quarter and so what gives me confidence is that when I look down at all of our sub lines of business I don't see big buckets, driving that production and as Jamie mentioned earlier as we look into the fourth.

Speaker #9: That's amortized across 10 years, which seems a little long. You know, I think the average term in the Synovus loan book is three or four years.

Speaker #9: Just so you know, why so conservative? Shouldn't that come in? Shouldn't those rate marks come in a little bit faster?

Order, we think a lot of these areas will just continue to produce at similar levels and as he referenced pipelines are up about 14% and that's really across a lot of these businesses. So there's not any one area. We're seeing it in both C&I and CRE I would mentioned that CRE, even at $500 million is far below where it would have been years.

Speaker #7: Yeah, we have different amortization periods for different parts of the rate mark. You know, if you look at the AOCI, you know it's an eight-year.

Kevin Blair: Yeah. We have different amortization periods for different parts of the rate mark. You know, if you look at the AOCI, it's an 8-year. If it's held in maturity, it's 15-year. If it's the loan portfolio, it's 10-year. We try to be as appropriate as possible in how we looked at those. I guess on the loan portfolio, it's sum of the year's digits, so it'll be a little bit front-loaded on that. We feel like those rate marks remain appropriate. We think that that's a good indication of how they will come through. Yeah, I guess that's all I'll say about that.

Speaker #7: If it's held to maturity, it's a 15-year. If it's a loan portfolio, it's a 10-year. So we try to be as appropriate as possible in how we looked at those.

When rates and cap rates were.

Current level I think as rates come down we could see that number build.

Speaker #7: And then I guess on the loan portfolio, it's some of the year's digits. So it'll be a little bit front-loaded on that. And so we feel like those rate marks remain appropriate.

Exponentially, but across the board a lot of C&I contributors and I think that will continue for the foreseeable future.

Thank you and then on capital markets income another good quarter in that line item I'm wondering if you think especially with the outlook for lower rates.

Speaker #7: We think that that's a good indication of how they will come through. Yeah, I guess that's all I'll say about that.

That that line item can be sustained at the level you saw or if it can even pick up from here. Thank you.

Speaker #9: Great. Thank you.

Jon Arfstrom: Great. Thank you.

Absolutely Tony when you think about $14 million about 40% of that revenue came from derivatives and I think as rates move youre going to still see people wanting to lock in fixed rates, especially as rates come lower so as production remains elevated and continues to grow youll continue to see the derivative income come in.

Speaker #7: Yep.

Kevin Blair: Yep.

Speaker #1: Thank you. Our next question comes from Anthony Ilian from JP Morgan. Your line's now open. Please go ahead.

Operator: Thank you. Our next question comes from Anthony Elian from JPMorgan. Your line's now open. Please go ahead.

Speaker #10: Hi, everyone. On loan growth, you called out production was about $2 billion for a second straight quarter. I'm wondering if you can give us more color on any specific areas or drivers of that.

Anthony Elian: Hi, everyone. On loan growth, you called out production was about $2 billion for a second straight quarter. I'm wondering if you can give us more color on any specific areas or drivers of that, what has driven the strong production levels, and how sustainable you think that level is.

This quarter, we saw about 40% of the revenue from syndication and lead arranger fees that was a record quarter for synovus and I'll remind everyone. We really only entered this business several years ago, where we're leading deals participating out to others and so I think again as we continue to grow our businesses produce larger loans youre going to see that.

Speaker #10: And that's driven the strong production levels. How sustainable do you think that level is?

Speaker #7: Yeah, you know, Tony, it's really, you know, it's not any specific area that's driving the growth. I mean, when I look at our areas and I look at the production by group, we saw strong production in middle market banking this quarter.

Kevin Blair: Yeah. You know, Tony, it's really not any specific area that's driving the growth. I mean, when I look at our areas and I look at the production by group, we saw strong production in Middle Market Commercial banking this quarter. We saw strong production in our Specialty Lending area. CIB stayed on par, a little over $100 million. Senior housing had a really strong month in production. CRE has picked up. We had about $500 million in production this quarter, a lot of retail. That was up about 40% quarter on quarter. What gives me confidence is that when I look down at all of our sublines of business, I don't see big buckets driving the production. As Jamie mentioned earlier, as we look into the fourth quarter, we think a lot of these areas will just continue to produce at similar levels.

Revenue pick up about 10% was debt capital markets.

Something that several years ago, we wanted to make sure that if we're providing capital to some of these larger borrowers we want to make sure that we're getting a piece of some of those that these and we continue to get those numbers and again as we go up market. We continue to grow our book will see those come in or the.

Speaker #7: We saw strong production in our specialty lending area. CIB stayed on par at a little over $100 million. Senior housing had a really strong month in production.

Speaker #7: CRE has picked up. We had about $500 million of production this quarter, with a lot of retail that was up about 40% quarter on quarter.

The other businesses like FX and small business.

And the small business administration loans I think those are two businesses, we plan to grow as well so when I look at all the categories I would not say that this quarter was episodic I would tell you that the momentum continues to build and as we join Pinnacle I think there'll be some opportunities to share some of the things we're doing on the pinnacle side and vice versa.

Speaker #7: And so what gives me confidence is that when I look down at all of our sub-lines of business, I don't see big buckets driving the production and as Jamie mentioned earlier, as we look into the fourth quarter, we think a lot of these areas will just continue to produce at similar levels.

Speaker #7: And as he referenced, pipelines are up about 14%. And that's really across a lot of these businesses. So there's not any one area. We're seeing it in both CNI and CRE.

Kevin Blair: As he referenced, pipelines are up about 14%, and that's really across a lot of these businesses. There's not any one area. We're seeing it in both CNI and CRE. I would mention that CRE, even at $500 million, is far below where it would have been years ago when rates and cap rates were at a different level. I think as rates come down, we could see that number build exponentially. Across the board, a lot of CNI contributors, and I think that will continue for the foreseeable future.

Thank you.

Thank you.

Next question comes from Christopher <unk> of Janney Montgomery.

Speaker #7: I would mention that CRE, even at $500 million, is far below where it would have been years ago when rates and cap rates were at a different level.

Your line is now open. Please go ahead.

Yeah.

Thanks, Good morning, Kevin and Jamie could you talk a little bit more about your loans to private equity funds and other intermediaries is there a deposit opportunity that you have with that business that you've been building the last year plus.

Speaker #7: I think as rates come down, we could see that number build exponentially. But across the board, a lot of CNI contributors, and I think that will continue for the foreseeable future.

Speaker #10: Thank you. And then on capital markets income, another good quarter in that line item. I'm wondering if you think, especially with the outlook for lower rates, that that line item can be sustained at the level you saw, or if it can even pick up from here.

No.

Anthony Elian: Thank you. On capital markets income, another good quarter in that line item. I'm wondering if you think, especially with the outlook for lower rates, that that line item can be sustained at the level you saw or if it can even pick up from here. Thank you.

Look I would tell you Chris is the deposit opportunity we talked about in the past that if you partner with some of these private credit or private equity funds can you provide ancillary services because we're competing with them today on capital and if you don't want to provide warehouse facilities is there a way to partner provide some capital to get the benefit of deposits.

Speaker #10: Thank you.

Speaker #7: Absolutely, Tony. You know, when you think about $14 million, about 40% of that revenue came from derivatives. I think as rates move, you're going to still see people wanting to lock in fixed rates, especially as rates come lower.

Kevin Blair: Absolutely, Tony. You know, when you think about $14 million, about 40% of that revenue came from derivatives. I think as rates move, you're going to still see people wanting to lock in fixed rates, especially as rates come lower. As production remains elevated and continues to grow, you'll continue to see the derivative income come in. This quarter, we saw about 40% of the revenue from syndication and lead arranger fees. That was a record quarter for Synovus Financial Corp. I will remind everyone, we really only entered this business several years ago where we're leading deals, participating out to others. I think, again, as we continue to grow our businesses, produce larger loans, you're going to see that revenue pick up. About 10% was debt capital markets.

We probably have a couple of relationships like that but I would tell you it's not material.

We are not.

Speaker #7: So, as production remains elevated and continues to grow, you'll continue to see the derivative income come in. This quarter, we saw about 40% of the revenue from syndication and lead arranger fees.

Significant lenders into the private credit private equity markets.

No.

<unk> picked up a lot of <unk>.

Commentary in the last couple of weeks I'll, just remind everyone about 60% of our exposure there is in our structured lending division.

Speaker #7: That was a record quarter for Synovus. And I will remind everyone we really only entered this business several years ago, where we're leading deals, participating out to others.

That group has a stellar track record for credit performance, we've never had a charge off there we have no mpls no criticized and classified loans and it's 100% senior secured so it's a business that we continue to grow as well structured as well underwritten and most importantly, they monitor the collateral so.

Speaker #7: And so I think, again, as we continue to grow our businesses and produce larger loans, you’re going to see that revenue pick up. About 10% was debt capital markets.

Speaker #7: That's something that several years ago we wanted to make sure that if we're providing capital to some of these larger borrowers, we want to make sure that we're getting a piece of some of those debt fees, and we continue to get those numbers.

Kevin Blair: That's something that several years ago, we wanted to make sure that if we're providing capital to some of these larger borrowers, we want to make sure that we're getting a piece of some of those debt fees, and we continue to get those numbers. Again, as we go up market, we continue to grow our book, we'll see those come in. The other businesses like FX and small business sales and the Small Business Administration loans, I think those are two businesses we plan to grow as well. When I look at all the categories, I would not say that this quarter was episodic. I would tell you that the momentum continues to build. As we join Pinnacle Financial Partners, I think there'll be some opportunities to share some of the things we're doing on the Pinnacle side and vice versa.

Knock on wood, we won't have that.

You've seen happen with others across the industry.

Speaker #7: And again, as we go up market, we continue to grow our book. We'll see those come in. The other businesses, like FX and small business sales in the Small Business Administration loans, I think those are two businesses we plan to grow as well.

Great Kevin Thats helpful. So the growth in and EFI really relates back to some of the expansion of that structured group that's much more to do to keep balances rise than any other exactly Chris and what I would tell you is remember when we did our risk weighted asset optimization exercise.

Speaker #7: So, when I look at all the categories, I would not say that this quarter was episodic. I would tell you that the momentum continues to build.

Most of those loans, the large majority get preferential risk weighting treatment at 20%, which shows you how well secured they are in the strong legal protections in the collateral management that's behind those.

Speaker #7: And as we join Pinnacle, I think there will be some opportunities to share some of the things we’re doing on the Pinnacle side and vice versa.

Speaker #9: Thank you.

Anthony Elian: Thank you.

<unk>.

Speaker #1: Thank you. Our next question comes from Christopher Marinak of Jannie Montgomery. Your line's now open. Please go ahead.

Operator: Thank you. Our next question comes from Christopher Maranak of Janney Montgomery. Your line is now open. Please go ahead.

Great I appreciate that and I guess, it's safe to presume that your reserves really already kind of capture that growth that structured business already.

Speaker #10: Thanks. Good morning. Kevin and Jamie, can you talk a little bit more about your loans to private equity funds and other intermediaries? Is there a deposit opportunity that you have with that business that you've been building the last year plus?

Kevin Blair: Thanks. Good morning. Kevin and Jamie, can you tell us a little bit more about your loans to private equity funds and other intermediaries? Is there a deposit opportunity that you have with that business that you've been building the last year plus?

Absolutely.

Yeah.

Great. Thank you very much.

Thank you Chris.

Thanks Keith.

This concludes our question and answer session I would like to turn the conference back over to Mr. Kevin Plank for any closing remarks.

Speaker #7: No, you know, look, I would tell you, Chris, and the deposit opportunity we talked about in the past, that if you partner with some of these private credit or private equity funds, can you provide ancillary services?

Kevin Blair: No. You know, look, I would tell you, Chris, the deposit opportunity, we talked about in the past that if you partner with some of these private credit or private equity funds, can you provide ancillary services? Because, you know, we're competing with them today on capital. If you don't want to provide warehouse facilities, is there a way to partner or provide some capital but get the benefit of deposits? We probably have a couple of relationships like that, but I would tell you it's not material. You know, we are not significant lenders into the private credit, private equity markets. I know that NDFIs have picked up a lot of commentary in the last couple of weeks. I'll just remind everyone, about 60% of our exposure there is in our Structured Lending division, and that group has a stellar track record for credit performance.

Thank you Alex as we wrap up today's call I want to thank the entire synovus team for delivering another exceptional quarter, we're successful because of you.

Speaker #7: Because you know we're competing with them today on capital. If you don't want to provide warehouse facilities, is there a way to partner or provide some capital but get the benefit of deposits?

We're entering the fourth quarter with strong momentum as evidenced by this quarter's highlights third quarter was yet another quarter of exceeding the street's expectations. We increased our revenue guidance to the high end of the range and lowered our expense guidance to the low end of the range for the year, we had the lowest net charge offs in almost three years, the lowest criticized and classified ratio.

Speaker #7: We probably have a couple of relationships like that, but I would tell you it's not material. You know we are not significant lenders into the private credit, private equity markets.

Speaker #7: I know that DFIs have picked up a lot of commentary in the last couple of weeks. I'll just remind everyone that 60% of our exposure there is in our structured lending division.

In two years.

We also have the highest quarter for core fee income and the highest CET one levels in our company's history and add onto that we had profitability that continues to stand out with an ROA at $1 42 in a row TCE at almost 18%. These.

Speaker #7: And that group has a stellar track record for credit performance. We've never had a charge-off there. We have no NPLs, no criticized classified loans.

Kevin Blair: We've never had a charge-off there. We have no NPLs, no criticized or classified loans, and it's 100% senior-secured. It's a business that we continue to grow. It's well structured. It's well underwritten. Most importantly, they monitor the collateral. I'll knock on wood, we won't have events that you've seen happen with others across the industry.

Speaker #7: And it's 100% senior secured. So it's a business that we continue to grow. It's well structured, it's well underwritten, and, most importantly, they monitor the collateral. So, you know, I'll knock on wood.

These accomplishments serve as a strong foundation as we prepare to close our strategic merger with Pinnacle financial partners together, we're creating the nations most dynamic regional bank fast growing service driven best in class in every way.

Speaker #7: We won't have events that you've seen happen with others across the industry.

I want to recognize the hard work of our merger integration offices, both at Synovus and at Pinnacle.

Speaker #1: Great. Kevin, that's helpful. So, the growth in NDFI really relates back to sort of the expansion of that structured group, and that's much more to do with these balances rising than any other focus.

Kevin Blair: Great, Kevin. That's helpful. The growth in NDFI really relates back to the expansion of that structured group, and that's much more to do with these balances rising than any other focus.

Their dedication and collaboration have been instrumental in ensuring we are ready to operate as a larger and more capable financial institution and let me be clear. This is hard work and it is not lost on anyone success will be determined by our execution and it will require compromise based on a set of common goals and ambitions.

Speaker #7: Exactly. Chris. And what I would tell you is, remember when we did our risk-weighted asset optimization exercise, most of those loans—the large majority—get preferential risk-weighting treatment at 20%, which shows you how well-secured they are, given the strong legal protections and the collateral management that's behind those assets.

Kevin Blair: Exactly, Chris. What I would tell you is, remember, when we did our risk-weighted asset optimization exercise, most of those loans, the large majority, get preferential risk-weighting treatment at 20%, which shows you how well-secured they are and the strong legal protections and the collateral management that's behind those assets.

Terry and I recognize that this merger will result in changes to both companies, but we're 100% committed to joining together by adopting the best of each.

In that regard here at Synovus, we are already transitioning to the pinnacle operating model, which means we will deliver through a strong geographic model support local delivery with non siloed expertise in specialty partnerships add revenue producers at an accelerated pace and have the entire team incentivized and motivated on delivering top of head.

Speaker #10: Great. I appreciate that. And I guess it's safe to presume that your reserves really already kind of capture that growth of that structured business already.

Kevin Blair: Great. I appreciate that. I guess it's safe to presume that your reserves really already kind of capture that growth of that structured business already.

Speaker #7: Absolutely.

Kevin Blair: Absolutely.

Speaker #10: Great, Kevin. Thank you very much.

Kevin Blair: Great, Kevin. Thank you very much.

Speaker #7: Thank you, Chris.

Kevin Blair: Thank you, Chris.

Speaker #1: Thank you. This concludes our question-and-answer session. I'd like to turn the conference back over to Mr. Kevin Blair for any closing remarks.

<unk> growth and risk management goals things are moving at a very swift pace.

Operator: Thank you. This concludes our question and answer session. I'd like to turn the conference back over to Mr. Kevin Blair for any closing remarks.

So like to use this opportunity to extend my congratulations to pinnacle on their upcoming 25th anniversary. It's a notable milestone that reflects their decades of success and enduring commitment to service excellence growth orientation, and entrepreneurial spirit values that will align perfectly with our shared vision also want to express my.

Speaker #11: Thank you, Alex.

Kevin Blair: Thank you, Alex. As we wrap up today's call, I want to thank the entire Synovus team for delivering another exceptional quarter. We are successful because of you. We're entering the fourth quarter with strong momentum, as evidenced by this quarter's highlights. Third quarter was yet another quarter of exceeding the Street's expectations. We increased our revenue guidance to the high end of the range and lowered our expense guidance to the low end of the range for the year. We had the lowest net charge-offs in almost three years, the lowest criticized/classified ratio in two years. We also had the highest quarter for core fee income and the highest CET1 levels in our company's history. To add on to that, we had profitability that continues to stand out with an ROA at 1.42% and an ROTCE at almost 18%.

Speaker #7: As we wrap up today's call, I want to thank the entire Synovus team for delivering another exceptional quarter. We are successful because of you.

Gratitude to our board of directors for their invaluable advice and counsel through this transaction their guidance has been critical in helping us navigate complex decisions and positioning synovus for long term success.

And lastly, I want to thank our clients. Thank you for your continued trust and support you are the reason we get out of bed every day and you are at the center of every decision we are making as we bring these two high performing organizations together.

Terry stated that in his career he has never seen a more advantaged competitive position than the one we will enjoy post merger.

Kevin Blair: These accomplishments serve as a strong foundation as we prepare to close our strategic merger with Pinnacle Financial Partners. Together, we're creating the nation's most dynamic regional bank: fast-growing, service-driven, best-in-class in every way. I also want to recognize the hard work of our merger integration offices, both at Synovus and at Pinnacle. Their dedication and collaboration have been instrumental in ensuring we're ready to operate as a larger and more capable financial institution. Let me be clear, this is hard work and is not lost on anyone. Success will be determined by our execution, and it will require a compromise based on a set of common goals and ambitions. Terry and I recognize that this merger will result in changes to both companies, but we're 100% committed to joining together by adopting the best of each.

Echo that sentiment and I'm incredibly confident in the path ahead, and I'm completely energized by the opportunity we have to shape the future of regional banking.

Best is yet to come.

And with that Alex This concludes our third quarter earnings call.

Thank you all for joining today's call you may now disconnect your lines.

Kevin Blair: In that regard, here at Synovus, we are already transitioning to the Pinnacle operating model, which means we will deliver through a strong geographic model, support local delivery with non-siloed expertise and specialty partnerships, add revenue producers at an accelerated pace, and have the entire team incentivized and motivated on delivering top-of-house growth and risk management goals. Things are moving at a very swift pace. I'd also like to use this opportunity to extend my congratulations to Pinnacle on their upcoming 25th anniversary. It's a notable milestone that reflects their decades of success and enduring commitment to service excellence, growth orientation, and entrepreneurial spirit, values that will align perfectly with our shared vision. I also want to express my gratitude to our Board of Directors for their invaluable advice and counsel through this transaction. Their guidance has been critical in helping us navigate complex decisions and positioning Synovus Financial Corp.

Kevin Blair: for long-term success. Lastly, I want to thank our clients. Thank you for your continued trust and support. You're the reason we get out of bed every day, and you're at the center of every decision we are making as we bring these two high-performing organizations together. Terry stated that in his career, he has never seen a more advantaged competitive position than the one we will enjoy post-merger. I echo that sentiment, and I'm incredibly confident in the path ahead, and I'm completely energized by the opportunity we have to shape the future of regional banking. The best is yet to come. With that, Alex, this concludes our third quarter earnings call.

Terry stated that in his career he has never seen a more advanced competitive position than the 1. We will enjoy post merger. I Echo that sentiment and I'm incredibly confident in the path ahead and and I'm completely energized by the opportunity. We have to shape the future of regional banking. The Best Is Yet To Come.

And with that Alex, this concludes our third quarter earnings call

Operator: Thank you all for joining today's call. You may now disconnect your lines.

Thank you all for joining the call. You may now disconnect your lines.