Chart 39: How do you view fundamentals for multifamily lending in 2017?

Chart 39: How do you view fundamentals for multifamily lending in 2017? 30% 27% 27% 27% 29% 20% 15% 10% 7% 5% 0% 13% Softening Softening Softening | Someconcern, but No concern fundamentals fundamentals fundamentals only in certain should leadto shouldleadto = shouldleadto _—sregions and at slower financing worsening credit slower financing certain rental price activity next year metrics activing and points worsening credit metrics Source: BofA Merrill Lynch Global Research = Confident past most of taxi medallion issues: Management expressed confidence that it has taken care of most of the issues on its Chicago taxi medallion loan book and is seeing stabilization of its New York book with New York fleets near 100% utilization. Management also expects the $20mn +/- in quarterly provisioning outlook to absorb the impact from any incremental provisioning associated with the medallion portfolio. Chart 40: How much does SBNY’s taxi medallion exposure impact your decision to invest in the stock? 45% 40% 35% 30% 29% 20% 15% 10% 5% 0% Not at all, the portfolio only —_A little bit, | think this portfolio | am staying away from the accounts for 2% of total loans could continue to cause some name due to this exposure EPS volatility Source: BofA Merrill Lynch Global Research synovus Financial (SNV), C-2-7, Neutral SNV hesitant to react too quickly to post-election excitement. Chairman and CEO Kessel Stelling noted that despite the very positive reaction seen in bank stocks from the results of the US elections, it was too soon to say the real impact on growth outlook. That said, he believes that a more encouraging business climate (i.e. increased infrastructure spending) as well as some regulatory relief (i.e. raising the $50bn asset threshold) could be a benefit for SNV and the overall industry. = SNV could see a benefit at both ends of a steepening yield curve. As of 3Q16, 50% of SNV’s total loan portfolio was fixed rate (includes variable rate loans with floors), implying a benefit to spread income from a rise in both the short- and long- end of the yield curve. With the futures market now pricing in a 94% probability the Fed raises rates in Dec., CFO Kevin Blair believes the net interest margin could expand by 6bp in from a 25bp rate hike (vs. +9bp last year). That said, the benefit is Bankof America isa Merrill Lynch 2016 Future of Financials Conference | 17 November 2016 27 HOUSE_OVERSIGHT_014341