Synovus to cut branch footprint by 15% in 2022

Synovus Financial Corp. plans to shrink its branch footprint by 15% next year and expects to beat its loan growth guidance for this year.

In a Dec. 7 investor presentation, President and CEO Kevin Blair said the company anticipates loan growth in the upper half to reach the top end of 2% to 4%, excluding Paycheck Protection Program and third-party loans. The Columbus, Ga.-based company previously estimated that loan growth for 2021 would be in the lower end of this range.

"And that's just a function of great production this quarter, slightly lower payoffs and a little bit increase in utilization. So most of this is just coming from robust production," Blair said, according to a transcript.

Looking ahead to next year, Blair said the bank plans to close roughly 15% of its branches.

"Despite the fact that we've been closing branches, we've been able to continue to increase the number of consumer accounts that we have. And we think we can parlay that into the future," Blair said, adding that the money saved from the closures would be reinvested into digital capabilities.

The positive trend in loan growth is apparent across Synovus' businesses, including its community bank and commercial real estate, commercial and industrial, and middle market banking areas, according to Blair.

Blair also expressed confidence that this growth rate will be "slightly higher" than the company's core growth rate given a "constructive" economic environment. Blair highlighted the addition of new business lines such as new restaurant services verticals.

"We've got to make sure that we're getting the productivity out of the core business, but continuing to add new levers of growth that are obviously profitable that would generate above market average growth," Blair said.