Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended March 31, 2020.

First Quarter 2020 Highlights

• Diluted EPS of $0.20; adjusted diluted EPS of $0.21.

• Period-end loan growth of $1.10 billion sequentially, or 11.9% annualized.

• Core transaction deposits (non-interest bearing, NOW/savings, and money market deposits excluding public and brokered funds) increased $623.0 million sequentially, or 10.4% annualized. Core interest-bearing deposit (NOW/savings, money market, and time deposit) costs in March down 26 bps from 4Q19, excluding purchase accounting adjustments (PAA).

• Net interest margin of 3.37% vs. 3.65% in 4Q19; 3.35% vs. 3.40% in 4Q19 for net interest margin excluding PAA.

• Non-interest revenue increased $5.9 million sequentially and $24.5 million year-over-year.

• Adoption of Current Expected Credit Loss (CECL) on January 1, 2020, which resulted in a Day One reserve increase of $110.4 million, or 39.1% from 4Q19.

• Provision for credit losses of $158.7 million included significant economic stress due to COVID-19 healthcare crisis and the first quarter under CECL; allowance for credit losses to loan ratio of 1.39%.

• Credit quality metrics remain near historic lows, with the non-performing loan (NPL) ratio and net charge-off ratio of 0.41% and 0.21%, respectively.

• Paused share repurchase activity beyond the $16.2 million completed in the first quarter.

• Withdrew 2020 guidance and long-term goals announced with the 4Q19 earnings call.

• Funded approximately $2.0 billion in Paycheck Protection Program loans as of April 22, 2020.

• 97%+ of branches operational as drive-thru and appointment only; 80%+ team members working remotely.

• Provided bonus pay for on-site hourly team members and additional paid leave for virus-related hardships.

• Shareholders approved the elimination of 10-for-1 voting and supermajority voting requirements at the 2020 Annual Meeting on April 22, 2020.

“The first quarter of 2020 — especially our response to the COVID-19 crisis — demonstrates the resiliency we’ve built as an organization, and our ability to execute, innovate and rise to the occasion for team members, customers, and communities,” said Kessel D. Stelling, Synovus chairman and CEO. “Despite the challenging environment, the quarter reflected strong year-over-year growth in loans, core transaction deposits, and fee income as we continued to execute effectively on our strategic growth objectives. We enter this downturn from a position of strength, with robust capital and liquidity, strong credit quality, and solid operating fundamentals.

“In March, we immediately shifted focus to providing assistance and relief to customers, while ensuring the safety and wellness of our team members,” Stelling continued. “We are also proud to have secured funding to date of more than $2 billion in Paycheck Protection Program loans to small business customers. The intensity of demand for PPP and other assistance programs directly reflects the urgency of our customers’ needs based on current economic conditions, and we are grateful for the opportunity to support them in this time of crisis.”

• Total loans ended the quarter at $38.26 billion, up $1.10 billion sequentially, or 11.9% annualized.

• Total funded loan production of $3.06 billion and existing revolver growth of approximately $300 million sequentially.

• Commercial and industrial loans increased $878.8 million sequentially, with broad-based growth across industries and line utilization up modestly from 46% to 50%, primarily in March.

• Commercial real estate loans increased by $190.7 million sequentially, largely due to the strong momentum gained from the fourth quarter.

• Consumer loans increased $26.3 million sequentially, with growth in HELOC and consumer mortgages more than offsetting declines in other consumer loans including lending partnerships.

• Total deposits ended the quarter at $39.83 billion, up $1.42 billion sequentially, or 14.9% annualized.

• Core transaction deposits and public funds increased $623.0 million and $639.1 million sequentially, respectively, while CDs declined by $399.0 million.

• Core interest-bearing deposit costs in March down 26 bps from 4Q19 (excluding PAA).

• The loan to deposit ratio for the quarter was 96.1% compared to 96.8% in the fourth quarter.