Good morning, and welcome to the Synovus First Quarter 2022 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 will 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. Please note this event is being recorded. I will now turn the call over to Cal Evans, Head of 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, synovus.com. Kevin Blair, President and Chief Executive Officer, will begin the call. He will be followed by Jamie Gregory, Chief Financial Officer, and they will be available to answer your questions at the end of the call. Our comments include forward-looking statements. These statements are subject to risks and uncertainties, and the actual results could vary materially. We list these factors that may cause results to differ materially in our press release and in our SEC filings, which are available on our website. We do not assume any obligation to update any forward-looking statements because of new information, early developments, or otherwise, except as may be required by law. During the call, we will reference non-GAAP financial measures related to the company's performance. You may see the reconciliation of these measures in the appendix to our presentation. Now Kevin Blair will provide an overview of the quarter. Thank you, Cal. Good morning, everyone, and welcome to our first quarter earnings call. The first quarter provides another proof point of our continued focus on growth. I'm extremely proud of the way our team members set and kept the pace and focus as we pursued and won new business, deepened wallet share, enhanced our clients' experiences, and made ongoing progress in several areas of investment, including Maast, CIB, and Wholesale Banking. Our relationship banking approach delivered strong growth this quarter in loans, core transaction deposits, and core banking fees and are a product of broad-based success across our lines of business and client segments. At the same time, we've maintained good expense discipline by leveraging Synovus Forward initiatives to partially offset the inflationary expense environment that we have faced while continuing to invest in talent and our longer-term initiatives. The roadmap that we shared during our Investor Day back in February strikes the appropriate balance between core and transformational initiatives. You'll hear during today's call the positive impacts from several initiatives and investments we've outlined in our strategic plan and progress we are making towards building sustainable top-quartile performance. We continue to make progress on Synovus Forward with run rate benefits increasing to $125 million as of March end, and we remain on track to deliver $175 million by year-end. The optimization of our branch network is a significant initiative within the Synovus Forward program, with nine locations closed in the first quarter and approximately 30 planned for the rest of the year. We are also continuing to make some promising hires in revenue-producing talent and new leadership in key lines and key markets, increasing our wholesale middle market team by 10% this quarter while also expanding our specialty lending team and naming new community banking leadership in our Tampa and Chattanooga markets. On the CIB front, our plan to have talent in place by the second quarter remains on track, with 15-20 team members expected by year-end. Additionally, from a digital standpoint, we have continued to successfully migrate to our Synovus Gateway Digital Commercial Banking platform. Later this month, we'll complete a year-long transition of all of our commercial, wholesale, and small business clients, providing an enhanced and streamlined experience. Also during the first quarter, we launched our mobile virtual commercial card, which will make it even easier for our clients to utilize their credit facilities. From a consumer perspective, we heightened engagement across our digital platform, My Synovus, and expanded online account opening with increased product availability and expansion of capabilities and channels and launched phase one of consumer analytics, which is focused on the next best action for our clients. We also continued the measured integration of commercial analytics into how we manage credit events and borrower monitoring, most notably within the community and consumer bank lines of business. Lastly, development of our banking-as-a-service platform, Maast, is progressing on schedule with the second quarter pilot planned. We are finalizing the selection process for the ISV, which we will partner with for this phase. As the platform is being built, we continue to add talent to our team with two new senior leaders added this quarter who both have vast experience working with fintechs, integrations, and technology solutions. We also have signed a definitive agreement to acquire a 60% interest in Qualpay, a provider of cloud-based platform that combines a payment gateway with robust merchant processing solutions which will allow merchants and independent software vendors to easily integrate payments into their software or websites. The completion of this investment is subject to the satisfaction or waiver of customary closing conditions, including receipt of necessary regulatory approvals. Beyond the proposed investment to propel growth in Qualpay's core business, Synovus has chosen to leverage Qualpay's payment technology stack as an integral part of Maast. We believe this investment will help to speed up the delivery on Maast as well as ongoing enhancements and solution expansion. Now let's look at slide three, where we've included key financial highlights for the quarter. I'd like to begin with loans, which increased $1.1 billion, excluding PPP, or 11% on an annualized basis. Our Wholesale Banking segment had another exceptional quarter, and we also posted growth in both Community and Consumer Banking client segments, evidencing the momentum we have across the franchise. Commercial lending continues to be the driver of overall growth, with first quarter funded production up 43% year-over-year. What is important is that we've achieved this robust growth in a diversified fashion while maintaining our underwriting standards and adhering to our disciplined credit framework. Quality deposit growth continued in the first quarter, driven by an increase in non-interest-bearing deposits of $284 million. We continue to see growth in core consumer transaction accounts resulting from both balance augmentation and account growth. Our multi-year journey focused on remixing our deposit base into lower costs, sticky sources has positioned us well to manage deposit cost in this rising rate environment. PPNR adjusted for one-time items and excluding PPP fees was $213 million for the first quarter. This represents a $17 million or 9% increase year-over-year. Revenues increased, driven both by balance sheet growth as well as continued growth in multiple fee income businesses. We would be remiss if we didn't acknowledge the recent geopolitical risk and inflationary economic environment and their potential impacts to our clients, both from a consumer and commercial perspective. Increased prices and supply chain bottlenecks are putting additional pressure on liquidity and business activity in certain segments and may impact margins moving forward. Despite the challenges, our credit outlook remains positive. Overall, our strong quarter led to an adjusted EPS of $1.08 and operating metrics that demonstrate our focus on profitable growth. Jamie will now share a more detailed update on the results for this quarter. Thank you, Kevin. Starting with slide four, I'd like to begin with loan growth. Total loan balances ended the first quarter at $40 billion. Excluding PPP balances, loans grew $1.1 billion, led by growth in C&I. On an annualized basis, total loans were up 11%, our third consecutive quarter of annualized double-digit loan growth. As you can see on slide five, C&I loans were up $926 million quarter- over- quarter, and CRE loans grew $130 million. Commercial loan growth was broad-based with 10 of 11 wholesale bank businesses growing balances. We also continue to see growth in commercial production and line utilization. Commercial production increased 43% year- over- year, driven by a 40% increase in C&I. Line utilization increased to 46.1%, up from 42.8% in Q4. Higher utilization from lines existing at the end of the fourth quarter contributed approximately $200 million to loan growth in the first quarter. Higher utilization levels are reflective of our clients' investment spend, inventory level builds, and inflationary pressures related to higher input and labor cost, among other factors. Regional economic data indicates performance which outpaces the nation and showed little effects from the Omicron variant of COVID-19 over the course of the first quarter. Favorable demographic trends continue to give us a cautiously optimistic outlook on the economic health of our footprint in 2022 relative to the rest of the country. This perspective is underscored by conversations with clients and other industry participants within our footprint. As we turn to slide six, we continue to see positive trends within our deposit base, even as deposit growth has slowed from the record pace we saw in 2020 and 2021. Our focus remains the same, continuing to deliver Synovus to our clients in a way that leverages our platform to deepen client relationships. What we saw in the first quarter was consistent with that aim, with core non-interest bearing deposits up $284 million and savings deposits growth of $72 million quarter-over-quarter. Our Consumer Banking segment was a notable bright spot in that regard, with core transaction deposits up $701 million attributable to a combination of both account growth and balance augmentation. Time deposits declined by $143 million as a result of our continued focus on remixing our deposit base. Public funds decreased $236 million quarter-over-quarter, mainly a function of seasonality. Beyond our core portfolio, we also continue to leverage our broker deposit book as a means to efficiently manage our balance sheet and liquidity position. As we forecasted on our fourth quarter earnings call, we saw a notable decline in broker deposits, which were down $797 million. That decline was driven by our efforts to efficiently manage our liquidity position. However, we do expect a return to growth in that portfolio in the coming quarters as we leverage that funding source as a cost-efficient means of complementing our core deposit growth and helping to fund our strong loan growth expectations. Our average cost of deposits declined 1 basis point in the first quarter to 0.11%. This was driven by deposit mix optimization and strategic reductions in high cost deposits as previously described. The first rate hike in March had very little impact on deposit cost as we were able to limit rate increases across the majority of our products. We believe the deposit betas will be modest early in the hiking cycle with an expected beta of approximately 20% for the first 100 basis points of FOMC hikes. As monetary policy continues to tighten and the FOMC reaches a more neutral policy rate, we would expect to see increased betas. As a result, we're expecting cumulative betas in the mid-30s through that period. As shown on slide seven, net interest income was $392 million for the quarter, consistent with the prior quarter. The first quarter NII was affected by lower PPP fee income as well as the impact of a lower day count. Excluding these impacts, NII was up $13 million quarter-over-quarter. Year-over-year, NII was up $36 million excluding PPP fees. This represents an increase of 10% and was driven by the strong organic growth we saw in the latter half of 2021, and which carried over into the first quarter. The net interest margin was 3%, an increase of 4 basis points from the fourth quarter. As expected, lower cash balances helped to support NIM and offset the impact of continued decline in PPP fees. Looking ahead, we expect to see further NIM expansion in the coming quarters as the benefits of higher rates are realized. To help further contextualize the impact of rates, we included additional detail on our interest rate asset sensitivity on slide eight. Balance sheet asset sensitivity benefited from the continued growth in our floating rate loan portfolios, which increased to 59% of our total loan portfolio at quarter end, a 7% increase year-over-year. This is due to robust origination of variable rate C&I loans. Asset sensitivity also benefited from recent increases in short-term interest rates, which reduced the number of loans at their floored interest rate. Several factors offset these benefits to asset sensitivity. The increase in expectations for short-term interest rates led to an opportunity to lock in the benefits of a rising rate environment. Accordingly, during the first quarter, we added $1.4 billion in forward starting hedges. We also made a slight increase to our core deposit beta functions in the first quarter, largely driven by changes in the expected pace of Fed tightening, though those were offset somewhat by positive deposit remixing trends. For purposes of our sensitivity disclosures, we continue to assume a static through the cycle beta in the mid-30s. Collectively, as shown on slide eight, the combination of these factors resulted in a fairly stable asset sensitivity position quarter-over-quarter. Specifically, as it relates to deposit betas, we believe it is likely that betas will start low and increase as the FOMC progresses through this tightening cycle. Both the amount of tightening and the pace of tightening are expected to impact deposit betas. To illustrate how the realized beta may impact our NII profile, we've included a sensitivity table this quarter. As you can see, adjusting the beta 10% results in an approximate 1.6% change in asset sensitivity. Slide nine shows total adjusted non-interest revenue of $107 million, down $9 million from the previous quarter and down $6 million year-over-year. The quarter-over-quarter decline is primarily related to the $8 million BOLI gain in the fourth quarter. On a year-over-year basis, non-mortgage related fee income increased 12%. Notable items included an increase in core banking fees of 19% and wealth revenue of 11%. Growth in core banking fees was attributable to numerous categories, including card revenues and cash management fees, both reflecting our investments in treasury and payment solutions. In addition, other core banking fees such as SBA loans and merchant services improved year-over-year, a result of strong execution in these business lines. Wealth revenue benefited from strong customer acquisition and growth in assets under management year-over-year across all of our key wealth business lines. Within our retail financial advisory business, managed assets grew 24% year-over-year, primarily due to strong net inflows. Synovus Family Office grew their family count by 15% or 21% year-over-year and continues to see opportunity for growth in the coming quarters. Mortgage revenue of $6 million declined $1 million from the prior quarter and down $16 million from the prior year. As mortgage rates have increased, refinancing volumes have declined, which has resulted in reduced mortgage revenue. Slide 10 highlights total adjusted non-interest expense of $279 million, down $6 million from the prior quarter and up $14 million year-over-year. Adjusted items were led by the one-time gain on sale of our Columbus facilities, offset by branch-related restructuring charges. The decline in adjusted non-interest expense quarter-over-quarter is a result of prudent expense management and the normalization of expenses from an unusually high fourth quarter. Offsetting the expense normalization was seasonally higher employment taxes and employee benefit costs, which in total increased approximately $10 million from the fourth quarter. Year-over-year, adjusted expenses increased 5%. Over 50% of the increase is attributable to incentives and costs associated with elevated performance. We continue to benefit from the expense saves and discipline that are part of our culture as a result of our Synovus Forward initiative. As previously disclosed, we plan to significantly reduce our branch count in 2022. We forecast that by the end of the year, the run rate expense benefit from 2022 branch reductions will exceed $15 million, some of which will be reinvested in our digital delivery channel. Despite tight cost controls, we are investing in the growth initiatives covered at our Investor Day, such as CIB, Maast, and restaurant services, and we are fulfilling our strategic commitment to add frontline bankers. First quarter expenditures on new growth initiatives totaled approximately $3 million, and we are forecasting $25 million-$30 million in spend on new growth initiatives for 2022. Key credit metrics on slide 11 remain stable overall and at very low levels. The NPA and NPL ratios stayed level at 0.4% and 0.33% respectively. Total past dues decreased 4 basis points to 0.11%, and the criticized and classified percentage of loans remained at 2.6%. The net charge-off ratio, which was 0.19% for the quarter, continued to remain at historically low levels. This quarter, the economic outlook worsened due to heightened inflation concerns and geopolitical tensions. Because of this, our multi-scenario economic framework assumes a 64% downward bias relative to the third-party baseline scenario, which somewhat lags current conditions. This increasingly negative economic outlook was more than offset by the strong credit performance of the existing loan portfolio, as well as the reduced credit risk profile of recent loan growth. This resulted in an ACL coverage ratio of 1.15%, a decline of 4 basis points from the fourth quarter. While we are excited to deliver strong core loan growth, our credit team remains diligent in monitoring our loan portfolio and being judicious in approving new credit risks we take on our balance sheet. As we grow our business, we remain committed to maintaining a well-diversified, balanced loan portfolio across various industries and asset classes and diligently managing credit risk within our risk appetite. As noted on slide 12, the Common Equity Tier 1 ratio remained relatively stable at 9.47%. Strong PPNR continues to support organic capital creation, with 35 basis points accruing to Common Equity Tier 1, inclusive of taxes and the provision. Our focus remains on deploying this capital to our strategic priorities of strong core loan growth and a competitive common dividend, which now stands at $0.34 per share per quarter. Our capital position remains strong, and we continue to actively manage CET1 within our 9.25%-9.75% target range. In the first quarter, we repurchased $10 million in shares. As we outlined at Investor Day in February, our approach to capital management will continue to prioritize capital deployment that is aimed at supporting client growth, paying a stable common dividend, and accommodating opportunistic non-bank M&A opportunities. I'll now turn it back to Kevin. Thank you, Jamie. I'd now like to share some updates to our guidance for 2022, previously disclosed during fourth quarter earnings. The updated guidance does not include the impacts of the investment in Qualpay, which we currently expect to close in the third quarter and will have an overall immaterial impact on our financial statements. As a result of the strong loan growth and increased utilization we saw in the first quarter, as well as current pipeline levels, we are raising our loan growth guidance to 6%-8% for the year. While the probability of a slower growth environment has increased, it is important to note at this time we have not seen a significant negative impact on client loan demand attributable to either geopolitical risk or an increasing inflationary economic environment. Adjusted revenue is now expected to be 9%-11% for the year, largely a result of the elevated interest rate environment as well as strong first quarter loan growth. Embedded in this updated guidance is the forward rate curve as of March 31st, which assumes Fed funds end the year at approximately 2.5%. Adjusted non-interest expense is expected to be up 3%-6% for the year. While inflationary pressures certainly play a part in expected expense levels, the increase in our expense range is driven primarily by growth in performance-based incentive expectations. In addition, when looking at expense increases year-over-year, approximately 50% of the forecasted increase is attributable to investments in growth initiatives which we expect to drive revenue growth as we look past 2022. We expect to maintain strong positive operating leverage throughout the year. Our CET1 target range of 9.25%-9.75% remains the same, and we expect the effective tax rate to be lower for the year than was originally anticipated, now between 21%-23%. We remain on track to deliver our previously communicated $175 million of pre-tax Synovus Forward benefits by the end of this year. Synovus Forward is a combination of balance sheet, new revenue initiatives, and cost savings, and we continue to generate benefits in each of these categories. Before we transition to Q&A, I mentioned our team as I opened the call, but now that we've provided details on the financial performance they helped drive during the quarter, I want to once again thank our team members for their incredible efforts and for their ongoing passion for making Synovus truly stand out in this crowded and competitive landscape we operate. Now operator, let's open the call for Q&A. We will now begin the question- and- answer session. To ask a question, you may press star and then one on your touch tone phone. If you are 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. At this time, we will pause momentarily to assemble our roster. Our first question today comes from the line of Ebrahim Poonawala from Bank of America. Ebrahim, please go ahead with your question. Hey, good morning. Good morning. Good morning. I guess just wanted to follow- up. I think a question that came up during the Investor Day around Maast and banking-as-a-service. I heard you, Kevin, the Qualpay acquisition or investment not gonna have a meaningful impact to results this year. Now that you had some more time, I think since Investor Day at thinking about the business, can you frame for us what's the size of this opportunity revenue-wise, earnings-wise as we think about it? To just give us a sense of what the optionality that's baked into this and how we should think about it in terms of the investment pieces on the stock. Would appreciate any color around that. Well, you know, EB, it's a great question. You know, we've spent time since February building out the product. As I shared in my remarks earlier, that work has been built around a front end that is being provided by Qualpay, and we have a back-end processor. Our investment in Qualpay, we felt was important. We think they have a technology stack that is superior to what other payment processors are providing. It allows for more streamlined operations, better reconciliation, and quite frankly, it's much more scalable as we look to add new capabilities to the platform. Number one, we're happy with our progress. We're still on track to be able to deliver a pilot product in the second quarter. We're looking at to date three ISVs to be able to conduct that, but we'll start with one. We'll pilot that product throughout the remainder of 2022, and we'll have a full rollout in 2023. I think it's still premature to give any big revenue guidance in out years because that's what the pilot program is all about, is to be able to garner what sort of transactions we'll get from a payment platform, the depository impact. Then as you recall, phase II of the program was to add a fully embedded finance program where we would have lending capabilities. I would tell you since that February date, we remain very confident in our ability to develop the product. But more importantly, we continue to receive good feedback from those ISVs that this sort of product would be something that they would want to use. There's nothing that's changed. We do think it can be a meaningful impact. Although Qualpay is immaterial from a financial standpoint, we think it can be material as we use that company to build out the Maast product. Got it. Thanks, Kevin. I guess maybe later in the year might be better timing to get more clarity here. One question for Jamie. I think looking at slide 17, where you have your derivative hedging portfolio, just talk to us around strategy around managing asset sensitivity. If we do get all the rate hikes that are baked into the forward curve, how do you think about neutralizing the balance sheet and defending against the risk of lower rates down the road? Yeah, Ebrahim. You know, as we think about our hedging strategy, you can see that we added $1.4 billion in hedges in the first quarter. The thought process there is basically we looked at our asset sensitivity. It was increasing, and it's increasing for a couple reasons. First, the percentage of our loans that are floating rate continues to increase due to the growth in commercial C&I lending. That will continue going forward. Our balance sheet is natively asset sensitive, and it'll continue to get even more asset sensitive as we move forward. You also had the impact of the first rate hike moving loans off their floors, which was another incremental increase in asset sensitivity. We basically looked at our sensitivity and managed it through receive fixed with forward starting derivatives. You can think about these as receive fixed at just a shade more than 2%, that we believe is prudent. You know, if you get eight rate hikes from here or so, you're fairly close to break even on these. It's good for us to go ahead and lock in that benefit for that higher rate environment. We will continue to manage our asset sensitivity. We you know believe that the forward curve is actually a fairly likely scenario at this point, given Fed rhetoric. We will continue to manage that going forward, consistent with what you've seen in the past. Got it. Thanks for taking my questions. Our next question comes from Jennifer Demba from Truist Securities. Jennifer, your line is open. Thank you. Good morning. I noticed you didn't give any guidance on your future net charge-offs or credit costs. I wonder how you're thinking about that the next few quarters and what you're seeing from client sentiment right now. Hey, Jennifer, it's Bob. Thank you for the question. There's no doubt the spot metrics continue to be, you know, really good in terms of credit and specifically to your point, charge-offs. But I think we're kind of range bound right now. You know, if you look at it over the last several quarters, it's been in that 20-25 basis point range. In the intermediate term, I would certainly not, we don't see anything that's materially affecting our outlook, at least. Generally speaking through the remainder of this year. You know, longer term, there'll be some normalization, and I know that's a question of how you define that. Credit costs can't get much lower, so naturally, you know, there would be some incremental rise over time. To Jamie's point earlier, you know, the way we're reserving and our incremental allowance build that would begin to associate with a growing loan portfolio, you know, continued downward bias on the economics will keep us a little elevated there. From a guidance perspective, I feel like we're kind of in that range at least for the foreseeable future. Thanks, Bob. What buckets of the loan portfolio do you think are most vulnerable in an up-rate environment like this? Yeah, that too is a great question, Jennifer, and I certainly think about all of them. Let me highlight just a couple. If you think about a weakening consumer, as a result of the inflation factors and the rising rates, you know, certainly those industries that have, you know, dependency on discretionary spending, we're watching very closely. I think. The way I think about it is I go back to COVID when demand really just fell off the table, and we looked at our hotel portfolio, restaurant portfolio, arts, entertainment. I think those industries are still, you know, relatively the ones you would want to watch during a slowing consumer demand. I think, you know, at least from our perspective, we, you know, really got very diligent in those portfolios. We brought in, you know, our use of analytics, which is now built into our sort of business as usual platform of underwriting. We look at, you know, real-time cash inflows as we showed you all during the pandemic. I think that continues. Anything consumer related certainly is on my radar. On the commercial, portfolio side, specifically C&I, you know, small businesses would be something we would watch. For us, that portfolio is $1 billion-$1.5 billion, give or take, depending on how you define it. Those customers to date continue to be able to pass along increasing cost. I think over time, they don't have the leverage that their larger counterparts have relative to input cost and supplier negotiation. We could certainly see some margin squeeze there and certainly top line decline. Small business is one that is coming out. The good news for our portfolio is over half of that is secured by real estate of some type, which gives us a little comfort in the loss given default scenario. Those would be the ones I would call out. Thanks, Bob. Our next question comes from Steven Alexopoulos from JP Morgan. Steven, please go ahead. Hi, good morning, everyone. Good morning. Good morning, Steve. I wanted to start, how are you guys thinking about deposit growth in 2022? What's assumed in the 2022 revenue outlook that you're providing? Steven, I'll start, Kevin, on the deposit outlook. As you've seen in the last year, we've taken our strong liquidity position to continuously remix the book, bringing down higher cost CDs, bringing down some of our brokered funds. As we sit here today at an 83% loan- to- deposit ratio, we'll continue to strategically remix where it makes sense, where we can bring in the lower cost sticky deposits. We've increased the percentage of total deposits being non-interest bearing up to 34% this past quarter. Our strategy going forward would be that those categories that fall under our core transaction deposits will be the area that we continue to focus. We think that those categories should grow in line with our client growth, which should be in that 3%-5% range as we're thinking about continuing to take the growth that the economy gives us, but also taking share from some of our competitors. If you look at year-over-year, core transaction deposits are actually up 10%. Looking at the rest of the year, I think you would see that 3%-5% deposit growth, it would obviously be far less than what we've seen in previous years. As it relates to revenue growth for the rest of the year, I'll let Jamie touch on that. Yeah. I'll jump in a little bit more on the deposit side as well, because we will use broker deposits to fund incremental loan growth as we go through the year, Steven. You may see some rebuild of that portfolio, which will be incremental to our core transaction deposit growth that Kevin just kind of walked through. On the revenue guide, you know, we increased our guide to 9%-11%. We feel good about the growth outlook. Largely, what you see in that revenue guide increase is, one, an acknowledgment of the strong performance on the loan side in the first quarter, but also the change in the interest rate outlook. Embedded in that is our assumption of deposit betas remaining somewhat lower for the first few hikes. We're assuming an approximate 20% beta for the first four hikes, and then betas increasing as you go beyond that. That's really the source for the revenue guide update, the 9%-11%. Okay. That's helpful. Then, the second question on Qualpay, could you go into a bit more detail on the functionality this provides to you? What was the thought of acquiring, I think it was 60% or somewhere around there. What was the thought of acquiring the stake in the company? What additional benefits will that provide to you? Thanks. They're an ISO, Steven. Today they provide merchant processing for third parties. We have been the sponsor bank, the acquiring bank for them for some time, so we've known them. We think that their technology stack differentiates them in the payment space. Acquiring 60% of the company allows us to help set priorities for their core businesses, which will continue to be merchant acquiring business. Leveraging their development team, their technology stack to fully embed it into our payments platform that will be Maast. They will be the front- end to our program. As we sell merchant processing to these software vendors, they will be using the Qualpay platform that'll be brought to them by Synovus. Number one, it helps us get the product out there more quickly. Two, as we're looking at expanding the Maast program over time, whether it's through new reporting, new products, having that ownership interest allows us to direct investment and capital into the company to allow us to develop new capabilities. Okay. Very good. Thanks for taking my questions. Thank you. Our next question comes from Bradley Milsaps with Piper Sandler. Brad, your line is open. Hey, good morning. Good morning, Brad. Jamie or Kevin, maybe I wanted to start with the margin. Just kind of curious if you guys could comment on commercial loan yields. Do you think that, you know, you sort of reached the floor there, you know, exclusive of, you know, the rate changes we've seen and may continue to see? Just kind of curious what our starting point might be in terms of, you know, kind of where your commercial book can start to reprice up from. Just wanna hear kind of what you're hearing in terms of if those yields have started to bottom out. Yeah, Brad, it's a good question. We did see the weighted average rate increase quite a bit in first quarter relative to where we were back in fourth quarter, up actually 40 basis points on the rate front. We do believe it's still below the portfolio yield. I do think to your point, we've kind of hit bottom and we'll continue to produce new loans at or near where the portfolio rate is, which will allow us to start to expand the margin. I don't think that the price competition's going away. I just think credit spreads widened a bit and the environment has gotten to a position with the rate increase where we can actually put on loans that will be at or near where the overall portfolio rate is. Great. Very helpful. Just as my follow-up, Jamie, can you kind of talk about, you know, the moving parts, the balance sheet, you know, to the size of it? It looked like, you know, the bond portfolio, at least on a period-end basis, was down some, obviously some cash to run off those index or brokered money that you had. Do you still feel good about, you know, 3 basis points for each rate hike with kind of all the moving parts? That seems somewhat conservative, but just wanted to see if you could add some color. We still think that in the early hikes that using 3-4 basis points per Fed move is appropriate, with you know, the beta assumptions I mentioned earlier. We do feel good about that. As you get further along, maybe past the first 100 basis points, you could see betas increase and you could see that margin benefit decrease a little bit. A little more color though on that sensitivity is that about 60% of our asset sensitivity is to the front end of the curve. The 3-4 basis points is really just that front-end impact. There is a fairly significant impact by the back end of the curve and, you know, in that commentary of 3-4 basis points, I'm not really assuming a change in loan rates. Okay, great. Thank you. Our next question comes from Brody Preston from Stephens Inc. Your line is open. Hey, good morning, everyone. Good morning, Brody. Good morning. I just wanted to ask on the C&I growth. It's been obviously particularly strong in this quarter. You know, you finally sort of saw a big uptick in your utilization rates. You know, based on the chart you put in the deck, it looks like we're back to 4Q 2019 levels. You know, understanding that some of the revised guidance is due to this quarter's strength, but you also mentioned the pipeline. I guess, you know, should we expect this 46% to kind of hold or is there room for it to expand? I guess, you know, if there isn't room for it to expand, you know, what are kind of some of the key drivers of what you expect to be strong C&I growth going forward? Brody, I'll take that. As you saw, 300 basis point increase in utilization this quarter to 46%. That created about $500 million of growth. But I think it's important to dissect that $500 million. When you go back and look at the lines that were on the books the previous quarter, the increased draws from those existing lines contributed only $200 million or a little less than $200 million of that $500 million. About $300 million of the growth in line utilization came from new commitments and draws that we put on this past quarter. Now, to the question of where is the line utilization going, although 46% is where we were pre-pandemic, we've touched the line of 50% in the past. When you think about the inflationary environment that we're under. As well as the portfolio mix, we're growing our Wholesale Banking lines of credit at a faster pace, which typically carry a higher utilization rate. We believe that we could see utilization in the 50% range. If you took that off of today's commitments, that could contribute another $500 million worth of growth, if that were to play out. Now, we haven't included that in our 6%-8% loan growth projections, but we think that there's a likelihood that we could see continued line utilization increases. The other thing I would just point out on C&I, as you noted, of the growth this quarter, $926 million, we had 13 industry classifications show growth and 8 sub-lines of business produce growth. I think about it wasn't just a utilization story. It was broad-based. It was very diversified across many of our businesses and across many industries. That pipeline that you referenced, our pipelines are up about 30% from where they were closing out 2021. We remain confident that the production engine will continue in the second quarter, and it's not based on the line utilization continuing to go up. Got it. Okay, thank you for that. Then the last one was just on the interest rate disclosures. I appreciate all the interest rate disclosures within the deck. What I wanted to ask, it's a two-part question, but it's on the loan yield side. Jamie, you know, how are you thinking about, you know, I guess maybe, you know, you look at the floating rate portfolio, obviously, it's got the floors. But how are you guys thinking about, you know, maybe any attrition in the benefit that you would see from floating rate loans in your go-forward modeling in terms of, you know, floating rate loans converting to fixed loans over time, maybe losing some of those from a mix perspective? Is any of that factored into your go-forward NII sensitivity? Secondly, I noticed the big uptick in SOFR-based loans, and I guess I wanted to ask you know, SOFR is acting much more like, you know, the prime rate than it is LIBOR, at least in the market. So as you think about kind of floating rate loans going forward, you know, is there any benefits of pricing it on SOFR versus pricing it off of prime? Brody, good questions. As we think about the loan mix and the impact to the margin, as you're well aware, when you look at our fee revenue, a lot of our floating rate loans, our clients choose to swap them, and they hedge those loan exposures, and then we kind of pass that through. We're not assuming any material mix change around fixed float outside of the growth of floating rate lending just in aggregate, just given the areas of our businesses that were growing. We do expect a continued increase as far as the percentage of loans that are floating rate versus fixed. We're not assuming any mixes within the portfolio at the moment. On the SOFR, you know, as we think about the spread impact of SOFR versus LIBOR, it's uncertain, but we kind of look at that as a push because we think that, you know, we're giving our clients basically that spread difference on the spread. It ends up being a net push between where we think it would've been with a more credit-based index like LIBOR was. I'll just add, Jamie, you know, we also. You asked versus prime. We use prime on small business loans. We've kind of followed the industry in terms of what is market. The larger loans, the Wholesale Banking loans, are moving more on the SOFR platform. We're trying to keep consistent with what the industry is providing in terms of pricing terms and indices. Got it. Thank you very much for taking my questions, everyone. I appreciate it. Thanks, Brody. Our next question is from Brady Gailey from KBW. Brady, your line is open. Hey, thank you. Good morning, guys. Good morning. Good morning, Brady. I wanted to start on the share buyback. You know, there wasn't a lot of buybacks in the quarter, which makes sense. I know loan growth was pretty robust, and you know, you had some capital impact from AOCI. You know, with the growth profile looking better now, should we expect kind of a minimal amount of activity from the buyback this year? I think the first quarter is a good example of our strategy around capital management and leveraging share buybacks as kind of the last in line for capital management. When we look at the rest of the year, loan growth clearly was very strong in the first quarter, and that's where we deployed the capital generated through core earnings. As we go through the year, it, you know, if loan growth were to continue at the same pace, then you would expect to see very minimal share repurchases. We will use those kind of as the toggle. We believe that 9.5% Common Equity Tier 1 is the right place to be in this environment with this uncertainty. You're right to assume that it likely will assume, you know, lower amount of share repurchases than either prior year or what we're authorized for. All right. Intra-quarter, we saw one of your kind of southeast banking peers in Tennessee sell to a out-of-country buyer. That's mostly a consumer bank. You know, is that an opportunity for Synovus whether it's, you know, maybe hiring some new talent or, you know, taking some customer market share? Obviously, Brady, you know, anytime there's disruption in the marketplace, we think it presents an opportunity for us. As you know, that competitor does have overlap with Synovus. I think there were some unique elements to that transaction where there were some incentives paid upfront for retention. There may be a different tail as it relates to being able to attract some of the talent. Broadly, anytime that we see anyone going through a major conversion or having a headquarters moved out of the Southeast, we look at that as an opportunity. As I've shared with you in the past, you have to take it almost as a process. There are gonna be opportunities the day it's announced, there are gonna be opportunities when the management team switches out, and there are gonna be opportunities when there's an actual migration that's going on. We'll have to be smart in each of those elements to make sure that Synovus is planting seeds for both talent and clients to be the destination of choice if they decide they wanna move banking relationships. We'll go at that process similar to how we've done some of the other mergers that have happened in our footprint. Okay, great. Thanks guys. Thank you. Our next question comes from the line of Jared Shaw from Wells Fargo. Jared, your line is open. Hey, good morning. Good morning, Jared. You know, maybe just following up on that. You know, you gave some great long-term goals when we were all down there in February that were based on, you know, an unchanged utilization rate. You know, as you look at the strength of customer demand and then also, you know, the First Horizon opportunity, how does that impact that long-term goal? Is it a meaningful opportunity to maybe move that higher or you were, you know, sort of expecting some of these things in the background? You know, as we think about our multi-year goals, it's hard to react to just a couple months of new data. We clearly believe in the Southeast. We believe that the opportunity that's in front of us is real and is something that we capitalize on, you know, every day when we come into the office. We are excited about what's in front of us. We think that, you know, if you look at Q3, Q4, Q1, those are just data points of us capitalizing on the opportunity and we expect to continue. We don't have anything new to say about the longer term outlook and multi-year objectives. We see what's in front of us. We believe that we are uniquely positioned to take advantage of it, and that's what we're focused on doing. Okay, thanks. Just to follow- up on the margin benefit from higher rates. You said 60% of that is front-end loaded. Since February, we've seen the 10-year up about 100 basis points. If we keep the ten-year near this level, could that be an additional, call it 2-3 basis points benefit to margin? Or you'd expect it to be higher from here to get that benefit? When you think about where that sensitivity lies, it lies in our fixed rate assets on the balance sheet and both securities portfolio and mortgages. We did see premium amortization come down in the first quarter. I do believe that it could come down further even if mortgage rates stay where they are today. You could see a little bit of tailwind from the long end with where rates are today, but it's not as significant as that it would be if we had a further rate increase on the long end. Great. Thank you. Our next question is from Christopher Marinac from Janney Montgomery Scott. Christopher, your line is open. Thanks. Good morning. Jamie, a question for you. I don't know if you mentioned this earlier, but how have new loan rates changed in the last, you know, 30, 45 days? Have you seen any movement? Is the next Fed move really gonna be the change to engage those? You know, we have seen an increase, and Kevin did mention this a little bit earlier. In the first quarter, we did see an increase of about 40 basis points from the prior quarter. We are seeing a benefit, and it's coming through in a couple ways. It's coming through in new loan origination, but you're also seeing loans come off of their floors. You can see that in our asset sensitivity table. We're getting the benefit now of loans that were floored, kind of now they're not floored anymore. Every rate move impacts them. We are benefiting from that. We still, you know, have floored loans, but you know, each move reduces that amount and that's what you've seen kind of come through in the first quarter, and we expect that to continue, as we go forward. Great. That's helpful. Just wanted to reinforce that. Thanks. On the hedge strategy, does that limit the risk on the AOCI side at all? I know some of it's unavoidable. Just curious if that hedging strategy tempers AOCI impact. It does not. You could argue that it exacerbates the AOCI component of that because the mark-to-market does flow through on that. I do wanna speak to AOCI and the impact of tangible because we intentionally take duration risk in our securities portfolio and our hedge portfolio. You're well aware of our strategies there. Both the securities book as well as the hedge portfolio are offsets to our asset sensitivity. We benefit when rates rise. This is a partial offset to that. When we think about valuation and enterprise value in a higher rate environment, our enterprise value increases. When you look solely at AOCI and the valuation securities book and the hedge book, those go down. That's just a partial offset to what happens to the company as a whole. When we think about tangible book value, we think about AOCI as basically a temporary disconnect where you have, you know, an immediate reaction to the market value of these assets. That goes away over time as the assets mature. We believe in tangible book value growth. We think that that's an important shareholder value creator. When we look at AOCI and that impact, we view that as basically a temporary disconnect. That's kind of our holistic thought process around the impact of AOCI and how that flows through. Great. Thanks for going deeper there. I appreciate it. Clearly, your deposits are more valuable too as rates rise. We look forward to that. Absolutely. Thanks, Jamie. Yep. Thank you. Our next question comes from Kevin Fitzsimmons, from D.A. Davidson. Kevin, your line is open. Hey, guys. Good morning. Good morning, Kevin. Good morning. Most of my questions have been asked and answered. Just a few quick ones. Within the revenue guide, can you speak a little bit about how you're thinking about fee revenue? If you think about the run rate, what we saw this quarter, and I know we saw capital markets and mortgage declining, just generally how to think about that run rate going forward within that guidance. Thanks. Yeah, Kevin, it's actually a really good question because there's lots of assumptions that go into the rest of the year. We believe that for the year, NIR could be down around 5%. That would mean that for the rest of the year, you would see a fairly flat NIR quarterly number. There's again, some puts and takes. On the positive side, we feel very good about the ongoing growth of core banking fees, whether it's on the treasury and payment solution side or continuing to return to pre-pandemic levels with card spend and service charges. That should continue to provide a tailwind for us. Maybe the biggest uncertainty going forward is on the wealth side, where we're putting up, you know, a little less than $40 million a quarter. Depending on what the market does, that will have a big impact on what our fees do. We continue to have the opportunity to grow our assets under management. As Jamie mentioned in his remarks, we've seen good client acquisition growth. When you see the type of volatility in the market and just potentially having a bear market, it makes us a little less certain on what those future quarters are gonna look like. Then you look at mortgage, we think we've kinda hit a stable mortgage number for the quarter, and we think that will continue as we look into the future just based on volumes and margins. When you add up the things that we know that are growing along with mortgage, which is fairly stable, the real wild card will be what happens with wealth. If we see a constructive equity market, I think we could have some upside on the fee income component. Okay. Thanks, Kevin. One quick final question from me is on the Qualpay move, and I understand the logic and the rationale for it, but what does that replace? In other words, if you didn't make the investment in Qualpay, did you have this functionality that was already gonna be in place that this is kind of superseding? I'm just wondering what the plan would have been without Qualpay. Well, you know, early on, Kevin, we evaluated lots of vendors to utilize for the build and we selected Qualpay. Qualpay was already engaged in building out the Maast platform. This is nothing more than making an investment in the company to ensure that we can continue to provide the capital that will allow the company to meet today's needs, but ultimately the future needs as we grow this product. They were gonna be our partner either way. This just gives us an ownership interest in the company to be able to help shape and drive capital into the growth of the programs. Great. Very clear. Thanks, Kevin. This concludes our question- and- answer session. I would like to turn the conference back over to Mr. Kevin Blair for any closing remarks. Thank you. Thank you, Emily. Thanks everyone for attending this morning and your continued interest in Synovus. Just a few things I'll mention before we close out today's call. We were proud to recently be chosen again as the top workplace or one of the top workplaces in the Atlanta market by the Atlanta Journal-Constitution. The relevance of this sort of recognition in one of our biggest markets, our fastest growth market, is truly significant, especially given our efforts to continue to recruit and retain some of the best and brightest talent in the industry. Also, it seems like it's been a very long time, but we are transitioning our team member base back to being fully on site in our workplace in the coming weeks. Now, we will remain flexible as COVID trends continue to ebb and flow. Ultimately, we'll have the majority of our organization back on- site. But we have defined roles that will be able to maintain full remote capabilities and also some hybrid work schedules. I just think that's the future of work. We also continue to advance our ESG investments and initiatives, especially as we monitor the progress of the proposed SEC rules for climate disclosures beginning as early as next year. We've already completed our scope one and two GHG baseline assessments, and we'll continue to evaluate for future carbon reductions, like our branch consolidation efforts. We continue to deliver on the expectations that we set for ourselves, and I think it's been a year of acceleration and achievement, although we're just through one quarter. Our focus is very clear, it's on execution and continuing to meet our short-term objectives while expanding and extending our solutions to better meet client needs and to deliver sustainable top quartile performance. I truly look forward to the next time we're together to share our progress. For now, I hope everyone has a wonderful day. And operator, we'll close out our call. Thank you very much. This concludes our call. Thank you everyone for joining us today. You may now disconnect your lines.