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Extraction Summary
2
People
6
Organizations
0
Locations
1
Events
4
Relationships
3
Quotes
Document Information
Type:
Financial research report / conference summary
File Size:
Summary
This document is a page from a Bank of America Merrill Lynch report summarizing a presentation on the company SNV at the '2016 Future of Financials Conference'. The analysis covers SNV's credit outlook, capital deployment strategies, and online lending partnerships. The document contains no mention of Jeffrey Epstein, his known associates, organizations, or activities; it appears to be a standard financial analysis report that was likely included in a larger collection of documents submitted to a government body, as indicated by the 'HOUSE_OVERSIGHT' Bates number.
People (2)
| Name | Role | Context |
|---|---|---|
| Kevin Howard | Chief Credit Officer |
Chief Credit Officer of SNV who noted expectations for the company's net charge-offs to increase.
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| Mr. Stelling | Executive at SNV |
An SNV executive who commented on the company's strategy regarding capital deployment, acquisitions, and partnerships...
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Organizations (6)
| Name | Type | Context |
|---|---|---|
| Bank of America Merrill Lynch |
The author and publisher of the financial research report.
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| SNV |
The subject company of the financial analysis, likely Synovus Financial Corp.
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| SoFi |
An online lender mentioned as a partner of SNV.
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| GreenSky |
An online lender mentioned as a partner of SNV.
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| Entaire |
Mentioned as an example of a past strategic acquisition, of interest to SNV.
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| House Oversight |
Implied by the Bates number 'HOUSE_OVERSIGHT_014342' at the bottom of the page, suggesting the document was part of a...
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Timeline (1 events)
17 November 2016
Bank of America Merrill Lynch's '2016 Future of Financials Conference', where this analysis of SNV was presented.
Not specified
Relationships (4)
The document mentions 'SNV's partnerships with online lenders SoFi and GreenSky'.
The document mentions 'SNV's partnerships with online lenders SoFi and GreenSky'.
The document identifies him as 'Chief Credit Officer Kevin Howard'.
Identified as a representative of SNV commenting on company strategy at the conference.
Key Quotes (3)
"Mr. Howard noted that he would not be surprised if NCOs increased to 15-20bp in 2017 (cons: 12bp) and stay near those levels for the near future."Source
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Quote #1
"Mr. Stelling noted continued interest in strategic acquisitions (like Entaire) but hesitant to execute a large, dilutive transaction."Source
HOUSE_OVERSIGHT_014342.jpg
Quote #2
"Mr. Stelling agreed; however, he believes these partnerships represent the right vehicle to help the bank grow its retail portfolio to 20-25% of loans..."Source
HOUSE_OVERSIGHT_014342.jpg
Quote #3
Full Extracted Text
Complete text extracted from the document (2,327 characters)
dependent on what happens with deposit costs. SNV's current sensitivity analysis assumes a 50-60% deposit beta.
SNV keenly focused on credit. Chief Credit Officer Kevin Howard noted expectations for net charge-offs to naturally tick up as recoveries become less of a benefit and some seasoning in the loan portfolio. Recall during its earnings call, management lowered its FY16 net charge-off range to 10-20bp (3Q: 12bp). Mr. Howard noted that he would not be surprised if NCOs increased to 15-20bp in 2017 (cons: 12bp) and stay near those levels for the near future.
Management reiterated its intent to continue to deploy excess capital. Although SNV will disclose a more detailed capital plan in January, management expects to continue deploying excess capital via buybacks, M&A and/or organic growth. When asked how management should utilize its excess capital, 56% of the audience polled prefers SNV pursue M&A opportunities (vs. 8% last year). In reaction, Mr. Stelling noted continued interest in strategic acquisitions (like Entaire) but hesitant to execute a large, dilutive transaction. While DTA accretion could allow for continued share repurchase, management may choose to be a bit more opportunistic around buybacks given the run up in the stock.
Chart 41: What would you like to see management do with its excess capital?
60%
50%
40%
30%
20%
10%
0%
0% Be even more aggressive on buybacks
11% Increase the dividend payout
33% Support faster organic growth
56% Pursue M&A opportunities
60%
50%
40%
30%
20%
10%
0%
0% Be even more aggressive on buybacks
11% Increase the dividend payout
33% Support faster organic growth
56% Pursue M&A opportunities
Source: BofA Merrill Lynch Global Research
Management is positive but cautious on online lending partnerships. Investors were also relatively split in how they view SNV's partnerships with online lenders SoFi and GreenSky. The majority (57%) remains cautious on how these loans will perform during a credit cycle. Mr. Stelling agreed; however, he believes these partnerships represent the right vehicle to help the bank grow its retail portfolio to 20-25% of loans (in line with its strategy to transition away from CRE) and achieve its 1.0% ROA target (3Q: 0.88%). Although we note that SNV is being deliberate around growing this book and is targeting these loans to grow to approximately 2-3% of total loans.
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2016 Future of Financials Conference | 17 November 2016
Bank of America Merrill Lynch
HOUSE_OVERSIGHT_014342
2016 Future of Financials Conference | 17 November 2016
Bank of America Merrill Lynch
HOUSE_OVERSIGHT_014342
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