SNV
$19.29
Synovus Financial
($.02)
(.10%)
Earnings Details
1st Quarter March 2020
Friday, April 24, 2020 6:30:00 AM
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Summary

Synovus Financial Beats

Synovus Financial (SNV) reported 1st Quarter March 2020 earnings of $0.21 per share on revenue of $587.8 million. The consensus earnings estimate was $0.31 per share on revenue of $459.0 million. The Earnings Whisper number was $0.15 per share. Revenue grew 0.6% on a year-over-year basis.

Synovus Financial Corp is a financial services company and a registered bank holding company. It provides integrated financial services including commercial and retail banking, financial management, insurance and mortgage services.

Results
Reported Earnings
$0.21
Earnings Whisper
$0.15
Consensus Estimate
$0.31
Reported Revenue
$587.8 Mil
Revenue Estimate
$459.0 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Synovus Announces Earnings for the First Quarter 2020

Diluted Earnings per Share of $0.20 vs. $0.72 in 1Q19

 Adjusted Diluted Earnings per Share of $0.21 vs. $0.98 in 1Q19

COLUMBUS, Ga.--(BUSINESS WIRE)--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.
 

First Quarter Summary

Reported

 

Adjusted

(dollars in thousands)

1Q20

 

4Q19

 

1Q19

 

1Q20

 

4Q19

 

1Q19

Net income available to common shareholders

$

30,230

 

 

$

143,393

 

 

$

117,036

 

 

$

30,708

 

 

$

140,069

 

 

$

160,155

 

Diluted earnings per share

0.20

 

 

0.97

 

 

0.72

 

 

0.21

 

 

0.94

 

 

0.98

 

Total loans

38,258,024

 

 

37,162,450

 

 

35,634,501

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

Total deposits

39,826,585

 

 

38,405,504

 

 

38,075,190

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

Total revenues

477,903

 

 

497,992

 

 

477,183

 

 

473,424

 

 

492,049

 

 

476,250

 

Return on avg assets

0.32

%

 

1.27

%

 

1.06

%

 

0.32

%

 

1.24

%

 

1.45

%

Return on avg common equity

2.75

 

 

13.08

 

 

10.98

 

 

2.79

 

 

12.78

 

 

15.03

 

Return on avg tangible common equity

3.34

 

 

15.18

 

 

12.88

 

 

3.39

 

 

14.84

 

 

17.52

 

Net interest margin

3.37

 

 

3.65

 

 

3.78

 

 

3.35

 

 

3.40

 

 

3.59

 

Efficiency ratio

57.81

 

 

53.44

 

 

61.28

 

 

56.72

 

 

53.20

 

 

50.24

 

NCO ratio

0.21

 

 

0.10

 

 

0.19

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

NPA ratio

0.50

 

 

0.37

 

 

0.44

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

“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.”

 

Balance Sheet
Loans**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

1Q20

 

4Q19

 

Linked
Quarter
Change

 

Linked
Quarter %
Change*

 

1Q19

 

Year/Year
Change

 

Year/Year
% Change

Commercial & industrial

$

17,661.4

 

 

$

16,782.7

 

 

$

878.8

 

 

21.1

%

 

$

16,108.9

 

 

$

1,552.5

 

 

9.6

%

Commercial real estate

10,671.2

 

 

10,480.5

 

 

190.7

 

 

7.3

 

 

10,287.1

 

 

384.1

 

 

3.7

 

Consumer

9,950.9

 

 

9,924.7

 

 

26.3

 

 

1.1

 

 

9,262.1

 

 

688.8

 

 

7.4

 

Unearned income

(25.5)

 

 

(25.4)

 

 

(0.2)

 

 

2.7

 

 

(23.7)

 

 

(1.9)

 

 

7.9

 

Total loans

$

38,258.0

 

 

$

37,162.5

 

 

$

1,095.6

 

 

11.9

%

 

$

35,634.5

 

 

$

2,623.5

 

 

7.4

%

* Annualized

** Amounts may not total due to rounding

  • 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.
 

Deposits**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

1Q20

 

4Q19

Linked
Quarter
Change

Linked
Quarter %
Change*

 

1Q19

 

Year/Year
Change

 

Year/Year
% Change

Non-interest-bearing DDA

$

8,968.8

 

 

$

8,661.2

$

307.5

 

14.3

%

 

$

8,440.5

 

$

528.2

 

 

6.3

%

Interest-bearing DDA

4,617.4

 

 

4,769.5

 

(152.1

)

(12.8

)

 

4,911.2

 

(293.8

)

 

(6.0

)

Money market

10,255.0

 

 

9,827.4

 

427.7

 

17.5

 

 

8,912.5

 

1,342.5

 

 

15.1

 

Savings

949.5

 

 

909.5

 

40.0

 

17.7

 

 

903.8

 

45.7

 

 

5.1

 

Public funds

5,261.4

 

 

4,622.3

 

639.1

 

55.6

 

 

4,630.0

 

631.4

 

 

13.6

 

Time deposits

5,786.6

 

 

6,185.6

 

(399.0

)

(25.9

)

 

7,568.1

 

(1,781.4

)

 

(23.5

)

Brokered deposits

3,987.9

 

 

3,430.0

 

558.0

 

65.4

 

 

2,709.0

 

1,278.9

 

 

47.2

 

Total deposits

$

39,826.6

 

 

$

38,405.5

 

$

1,421.1

 

14.9

%

 

$

38,075.2

 

$

1,751.4

 

 

4.6

%

* Annualized

** Amounts may not total due to rounding

  • 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.
 

Income Statement Summary**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data)

1Q20

 

4Q19

 

Linked
Quarter
Change

 

Linked
Quarter %
Change

1Q19

 

Year/Year
Change

Year/Year
% Change

Net interest income

$

373,260

 

 

$

399,268

 

 

$

(26,008

)

 

(6.5

)%

 

$

397,175

 

 

$

(23,915

)

 

(6.0

)%

Non-interest revenue

103,857

 

 

97,955

 

 

5,902

 

 

6.0

 

 

79,378

 

 

24,479

 

 

30.8

 

Non-interest expense

276,279

 

 

266,121

 

 

10,158

 

 

3.8

 

 

292,410

 

 

(16,131

)

 

(5.5

)

Provision for credit losses

158,722

 

 

24,470

 

 

134,252

 

 

548.6

 

 

23,569

 

 

135,153

 

 

573.4

 

Income before taxes

$

42,116

 

 

$

206,632

 

 

$

(164,516

)

 

(79.6

)%

 

$

160,574

 

 

$

(118,458

)

 

(73.8

)%

Income tax expense

3,595

 

 

54,948

 

 

(51,353

)

 

(93.5

)

 

40,388

 

 

(36,793

)

 

(91.1

)

Preferred stock dividends

8,291

 

 

8,291

 

 

 

 

 

3,150

 

 

5,141

 

 

163.2

 

Net income available to common shareholders

$

30,230

 

 

$

143,393

 

 

$

(113,163

)

 

(78.9

)%

 

$

117,036

 

 

$

(86,806

)

 

(74.2

)%

Weighted average common shares outstanding, diluted

148,401

 

 

148,529

 

 

(128

)

 

(0.1

)

 

162,760

 

 

(14,359

)

 

(8.8

)%

Diluted earnings per share

$

0.20

 

 

$

0.97

 

 

$

(0.77

)

 

(78.9

)%

 

$

0.72

 

 

$

(0.52

)

 

(71.7

)

Adjusted diluted earnings per share

$

0.21

 

 

$

0.94

 

 

$

(0.73

)

 

(78.1

)%

 

$

0.98

 

 

$

(0.77

)

 

(79.0

)

** Amounts may not total due to rounding

nm - not meaningful

Core Performance

  • Total revenues were $477.9 million in the first quarter, down $20.1 million sequentially, including an expected decline of $24.8 million in PAA.
  • Net interest income decreased $26.0 million, or 6.5% sequentially, including an expected decline of $24.8 million in PAA.
  • Net interest margin was 3.37%, down 28 bps from the prior quarter. Excluding the impact of PAA, net interest margin was 3.35%, down 5 bps sequentially.
  • Non-interest revenue increased $5.9 million, or 6.0% sequentially, and increased $24.5 million, or 30.8% year-over-year. Adjusted non-interest revenue increased $7.4 million, or 8.0% sequentially, and $20.9 million, or 26.7% year-over-year.
    • The sequential growth in net mortgage revenues of $2.9 million and capital markets income of $2.3 million more than offset a $1.7 million decline in core banking fees due to seasonality and impact from COVID-19 and fee waivers.
  • Non-interest expense increased $10.2 million, or 3.8% sequentially. Adjusted non-interest expense increased $6.5 million, or 2.5% sequentially.
    • The increase in expenses resulted mainly from seasonally higher employment expense and COVID-related bonuses for front-line team members.
  • Provision for credit losses was $158.7 million, a $134.3 million increase sequentially, primarily impacted by the significant economic stress due to the COVID-19 healthcare crisis and reflected the first quarter under CECL.
  • The effective tax rate was 8.54% for the quarter, reflecting favorable discrete items.

Capital Ratios

 

 

 

 

 

 

 

 

1Q20

 

4Q19

 

1Q19

Common equity Tier 1 capital (CET1) ratio

8.72

%

*

8.95

%

 

9.52

%

Tier 1 capital ratio

9.97

 

*

10.23

 

 

10.01

 

Total risk-based capital ratio

12.31

 

*

12.25

 

 

12.06

 

Tier 1 leverage ratio

8.94

 

*

9.16

 

 

8.81

 

Tangible common equity ratio

7.94

 

 

8.08

 

 

8.34

 

* Ratios are preliminary.

Capital

  • CET1 ratio declined 23 bps during the quarter to 8.72%. The decline includes a reduction of 25 bps from risk-weighted asset growth, primarily from increases in loans. The March 31, 2020 ratios reflect Synovus' election of a five-year transition provision to delay for two years the estimated impact of CECL on regulatory capital, followed by a three year transition period.
  • Repurchased $16.2 million in common stock, or 450 thousand shares, during the quarter. Share repurchase activity has been suspended.

First Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on April 24, 2020. The earnings call will be accompanied by a slide presentation. Shareholders and other interested parties may listen to this conference call via simultaneous Internet broadcast. For a link to the webcast, go to investor.synovus.com/event. The replay will be archived for 12 months and will be available 30-45 minutes after the call.

Synovus Financial Corp. is a financial services company based in Columbus, Georgia, with approximately $51 billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services through 299 branches in Georgia, Alabama, South Carolina, Florida, and Tennessee. Synovus Bank, a wholly owned subsidiary of Synovus, has been recognized as one of the country's “Most Reputable Banks” by American Banker and the Reputation Institute. Synovus is on the web at synovus.com, and on Twitter, Facebook, LinkedIn, and Instagram.

Forward-Looking Statements

This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements through Synovus’ use of words such as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the future or otherwise regarding the outlook for Synovus’ future business and financial performance and/or the performance of the banking industry and economy in general. These forward-looking statements include, among others, our expectations regarding our future operating and financial performance, our expectations regarding net interest income and net interest margin; expectations on our growth strategy, expense and revenue initiatives, capital management, liquidity and funding, and future profitability; expectations on credit quality and performance; and the assumptions underlying our expectations. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Synovus to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, Synovus’ management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements in this press release. Many of these factors are beyond Synovus’ ability to control or predict.

These forward-looking statements are based upon information presently known to Synovus’ management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and uncertainties related to the impact of the COVID-19 pandemic on Synovus' assets, business, liquidity, financial condition, prospects and results of operations, and the risks and other factors set forth in Synovus’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2019, under the captions “Cautionary Notice Regarding Forward-Looking Statements” and “Risk Factors” and in Synovus’ quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as otherwise may be required by law.

Non-GAAP Financial Measures

The measures entitled adjusted non-interest income; adjusted non-interest expense; adjusted total revenues; adjusted tangible efficiency ratio; adjusted net income available to common shareholders; adjusted earnings per diluted share; adjusted return on average assets; adjusted return on average common equity; return on average tangible common equity; adjusted return on average tangible common equity; and tangible common equity ratio are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are total non-interest income; total non-interest expense; total revenues; efficiency ratio-FTE; net income available to common shareholders; earnings per diluted common share; return on average assets; return on average common equity; and the ratio of total shareholders' equity to total assets, respectively.

Management believes that these non-GAAP financial measures provide meaningful additional information about Synovus to assist management and investors in evaluating Synovus’ operating results, financial strength, the performance of its business, and the strength of its capital position. However, these non-GAAP financial measures have inherent limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of operating results or capital position as reported under GAAP. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant items and other factors, and since they are not required to be uniformly applied, they may not be comparable to other similarly titled measures at other companies. Adjusted total revenues and adjusted non-interest income are measures used by management to evaluate total revenues and non-interest income exclusive of net investment securities gains (losses) and gains on sales and changes in the fair value of private equity investments, net. Adjusted non-interest expense and the adjusted tangible efficiency ratio are measures utilized by management to measure the success of expense management initiatives focused on reducing recurring controllable operating costs. Adjusted net income available to common shareholders, adjusted earnings per diluted share, adjusted return on average assets, and adjusted return on average common equity are measures used by management to evaluate operating results exclusive of items that are not indicative of ongoing operations and impact period-to-period comparisons. Return on average tangible common equity and adjusted return on average tangible common equity are measures used by management to compare Synovus’ performance with other financial institutions because it calculates the return available to common shareholders without the impact of intangible assets and their related amortization, thereby allowing management to evaluate the performance of the business consistently. The tangible common equity ratio is used by management to assess the strength of our capital position. The computations of these measures are set forth in the tables below.

 

Reconciliation of Non-GAAP Financial Measures

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

1Q20

 

4Q19

 

1Q19

Adjusted non-interest revenue

 

 

 

 

 

Total non-interest revenue

$

103,857

 

 

$

97,955

 

 

$

79,378

 

Subtract/add: Investment securities (gains) losses, net

(8,734

)

 

2,157

 

 

(75

)

Add/subtract: Fair value decrease (increase) of private equity investments

4,255

 

 

(8,100

)

 

(858

)

Adjusted non-interest revenue

$

99,378

 

 

$

92,012

 

 

$

78,445

 

Adjusted non-interest expense

 

 

 

 

 

Total non-interest expense

$

276,279

 

 

$

266,121

 

 

$

292,410

 

Add/subtract: Merger-related expense

 

 

 

913

 

 

(49,738

)

Subtract: Restructuring charges, net

(3,220

)

 

(1,259

)

 

(19

)

Subtract: Valuation adjustment to Visa derivative

 

 

 

(1,111

)

 

 

 

Subtract: Loss on early extinguishment of debt, net

(1,904

)

 

 

 

 

 

 

Adjusted non-interest expense

$

271,155

 

 

$

264,664

 

 

$

242,653

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

1Q20

 

4Q19

 

1Q19

Adjusted total revenues and adjusted tangible efficiency ratio

 

 

 

 

 

Adjusted non-interest expense

$

271,155

 

 

$

264,664

 

 

$

242,653

 

Subtract: Amortization of intangibles

(2,640

)

 

(2,901

)

 

(3,392

)

Adjusted tangible non-interest expense

$

268,515

 

 

$

261,763

 

 

$

239,261

 

Net interest income

$

373,260

 

 

$

399,268

 

 

$

397,175

 

Add: Tax equivalent adjustment

786

 

 

769

 

 

630

 

Add: Total non-interest revenue

103,857

 

 

97,955

 

 

79,378

 

Total FTE revenues

477,903

 

 

497,992

 

 

477,183

 

Subtract/add: Investment securities (gains)/losses, net

(8,734

)

 

2,157

 

 

(75

)

Add/subtract: Fair value decrease (increase) of private equity investments

4,255

 

 

(8,100

)

 

(858

)

Adjusted total revenues

$

473,424

 

 

$

492,049

 

 

$

476,250

 

Efficiency ratio-FTE

57.81

%

 

53.44

%

 

61.28

%

Adjusted tangible efficiency ratio

56.72

 

 

53.20

 

 

50.24

 

 

 

 

 

 

 

Adjusted return on average assets

 

 

 

 

 

Net income

$

38,521

 

 

$

151,684

 

 

$

120,186

 

Subtract/add: Merger-related expense

 

 

(913

)

 

49,738

 

Add: Restructuring charges, net

3,220

 

 

1,259

 

 

19

 

Add: Valuation adjustment to Visa derivative

 

 

 

1,111

 

 

 

Add: Loss on early extinguishment of debt, net

1,904

 

 

 

 

 

Subtract/add: Investment securities (gains) losses, net

(8,734

)

 

2,157

 

 

(75

)

Add/subtract: Fair value decrease ( increase) of private equity investments

4,255

 

 

(8,100

)

 

(858

)

Subtract/add: Tax effect of adjustments

(167

)

 

1,162

 

 

(5,705

)

Adjusted net income

$

38,999

 

 

$

148,360

 

 

$

163,305

 

Net income annualized

$

154,931

 

 

$

601,790

 

 

$

487,421

 

Adjusted net income annualized

$

156,853

 

 

$

588,602

 

 

$

662,293

 

Total average assets

$

48,696,595

 

 

$

47,459,405

 

 

$

45,794,621

 

Return on average assets

0.32

%

 

1.27

%

 

1.06

%

Adjusted return on average assets

0.32

 

 

1.24

 

 

1.45

 

 

 

 

 

 

 

Adjusted net income available to common shareholders and adjusted net income per common share, diluted

 

 

 

 

 

Net income available to common shareholders

$

30,230

 

 

$

143,393

 

 

$

117,036

 

Subtract/add: Merger-related expense

 

 

 

(913

)

 

49,738

 

Add: Restructuring charges, net

3,220

 

 

1,259

 

 

19

 

Add: Valuation adjustment to Visa derivative

 

 

1,111

 

 

 

Add: Loss on early extinguishment of debt, net

1,904

 

 

 

 

 

Subtract/add: Investment securities (gains) losses, net

(8,734

)

 

2,157

 

 

(75

)

Add/subtract: Fair value decrease ( increase) of private equity investments

4,255

 

 

(8,100

)

 

(858

)

Subtract/add: Tax effect of adjustments

(167

)

 

1,162

 

 

(5,705

)

Adjusted net income available to common shareholders

$

30,708

 

 

$

140,069

 

 

$

160,155

 

Weighted average common shares outstanding, diluted

148,401

 

 

148,529

 

 

162,760

 

Net income per common share, diluted

$

0.20

 

 

$

0.97

 

 

$

0.72

 

Adjusted net income per common share, diluted

0.21

 

 

0.94

 

 

0.98

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

1Q20

 

4Q19

 

1Q19

 

 

 

 

 

 

Adjusted return on average common equity, return on average tangible common equity, and adjusted return on average tangible common equity

 

 

 

 

 

Net income available to common shareholders

$

30,230

 

 

$

143,393

 

 

$

117,036

 

Subtract/add: Merger-related expense

 

 

(913

)

 

49,738

 

Add: Restructuring charges, net

3,220

 

 

1,259

 

 

19

 

Add: Valuation adjustment to Visa derivative

 

 

1,111

 

 

 

Add: Loss on early extinguishment of debt, net

1,904

 

 

 

 

 

Subtract/add: Investment securities (gains) losses, net

(8,734

)

 

2,157

 

 

(75

)

Add/subtract: Fair value decrease (increase) of private equity investments

4,255

 

 

(8,100

)

 

(858

)

Subtract/add: Tax effect of adjustments

(167

)

 

1,162

 

 

(5,705

)

Adjusted net income available to common shareholders

$

30,708

 

 

$

140,069

 

 

$

160,155

 

 

 

 

 

 

 

Adjusted net income available to common shareholders annualized

$

123,507

 

 

$

555,709

 

 

$

649,518

 

Add: Amortization of intangibles

7,868

 

 

8,528

 

 

10,317

 

Adjusted net income available to common shareholders excluding amortization of intangibles annualized

$

131,375

 

 

$

564,237

 

 

$

659,835

 

 

 

 

 

 

 

Net income available to common shareholders annualized

$

121,584

 

 

$

568,896

 

 

$

474,646

 

Add: Amortization of intangibles

7,868

 

 

8,528

 

 

10,317

 

Net income available to common shareholders excluding amortization of intangibles annualized

$

129,452

 

 

$

577,424

 

 

$

484,963

 

 

 

 

 

 

 

Total average shareholders' equity less preferred stock

$

4,424,278

 

 

$

4,348,250

 

 

$

4,321,561

 

Subtract: Goodwill

(497,267

)

 

(488,223

)

 

(480,215

)

Subtract: Other intangible assets, net

(54,514

)

 

(57,149

)

 

(75,191

)

Total average tangible shareholders' equity less preferred stock

$

3,872,497

 

 

$

3,802,878

 

 

$

3,766,155

 

Return on average common equity

2.75

%

 

13.08

%

 

10.98

%

Adjusted return on average common equity

2.79

 

 

12.78

 

 

15.03

 

Return on average tangible common equity

3.34

 

 

15.18

 

 

12.88

 

Adjusted return on average tangible common equity

3.39

 

 

14.84

 

 

17.52

 

 

March 31,
2020

 

December 31,
2019

 

March 31,
2019

Tangible common equity ratio

 

 

 

 

 

Total assets

$

50,619,585

 

 

$

48,203,282

 

 

$

46,630,025

 

Subtract: Goodwill

(497,267

)

 

(497,267

)

 

(485,000

)

Subtract: Other intangible assets, net

(53,032

)

 

(55,671

)

 

(74,683

)

Tangible assets

$

50,069,286

 

 

$

47,650,344

 

 

$

46,070,342

 

 

 

 

 

 

 

Total shareholders’ equity

$

5,065,205

 

 

$

4,941,690

 

 

$

4,597,753

 

Subtract: Goodwill

(497,267

)

 

(497,267

)

 

(485,000

)

Subtract: Other intangible assets, net

(53,032

)

 

(55,671

)

 

(74,683

)

Subtract: Preferred Stock, no par value

(537,145

)

 

(537,145

)

 

(195,140

)

Tangible common equity

$

3,977,761

 

 

$

3,851,607

 

 

$

3,842,930

 

Total shareholders’ equity to total assets ratio

10.01

%

 

10.25

%

 

9.86

%

Tangible common equity ratio

7.94

 

 

8.08

 

 

8.34

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT DATA

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

2020

 

2019

 

First Quarter

 

First
Quarter

 

Fourth
Quarter

 

Third
Quarter

 

Second
Quarter

 

First
Quarter

 

20 vs '19

 

 

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

483,897

 

 

506,253

 

 

523,415

 

 

516,131

 

 

504,839

 

(4.1

)%

Interest expense

110,637

 

 

106,985

 

 

121,318

 

 

118,869

 

 

107,664

 

2.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

373,260

 

 

399,268

 

 

402,097

 

 

397,262

 

 

397,175

 

(6.0

)

Provision for credit losses

158,722

 

 

24,470

 

 

27,562

 

 

12,119

 

 

23,569

 

573.4

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for credit losses

214,538

 

 

374,798

 

 

374,535

 

 

385,143

 

 

373,606

 

(42.6

)

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest revenue:

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

20,689

 

 

22,385

 

 

22,952

 

 

21,994

 

 

20,859

 

(0.8

)

Fiduciary and asset management fees

15,174

 

 

15,645

 

 

14,686

 

 

14,478

 

 

13,578

 

11.8

 

Card fees

10,950

 

 

11,325

 

 

12,297

 

 

11,161

 

 

10,877

 

0.7

 

Brokerage revenue

12,398

 

 

11,106

 

 

11,071

 

 

10,052

 

 

9,379

 

32.2

 

Mortgage banking income

12,227

 

 

9,287

 

 

10,351

 

 

7,907

 

 

5,054

 

141.9

 

Capital markets income

11,243

 

 

8,972

 

 

7,396

 

 

8,916

 

 

5,245

 

114.4

 

Income from bank-owned life insurance

6,038

 

 

5,620

 

 

5,139

 

 

5,176

 

 

5,290

 

14.1

 

Investment securities gains/(losses), net

8,734

 

 

(2,157

)

 

(3,731

)

 

(1,845

)

 

75

 

nm

Fair value (decrease)/increase and gain on sale of private equity investments

(4,255

)

 

8,100

 

 

1,194

 

 

1,455

 

 

858

 

nm

Other non-interest revenue

10,659

 

 

7,672

 

 

7,405

 

 

10,513

 

 

8,163

 

30.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest revenue

103,857

 

 

97,955

 

 

88,760

 

 

89,807

 

 

79,378

 

30.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

Salaries and other personnel expense

149,678

 

 

145,084

 

 

142,516

 

 

143,009

 

 

139,427

 

7.4

 

Net occupancy and equipment expense

42,194

 

 

42,644

 

 

41,017

 

 

39,851

 

 

38,394

 

9.9

 

Third-party processing and other services

21,480

 

 

20,293

 

 

18,528

 

 

19,118

 

 

17,758

 

21.0

 

Professional fees

10,675

 

 

9,921

 

 

9,719

 

 

9,312

 

 

6,348

 

68.2

 

FDIC insurance and other regulatory fees

5,278

 

 

9,825

 

 

7,242

 

 

7,867

 

 

6,761

 

(21.9

)

Advertising expense

4,752

 

 

4,375

 

 

5,950

 

 

5,923

 

 

5,123

 

(7.2

)

Amortization of intangibles

2,640

 

 

2,901

 

 

2,901

 

 

2,410

 

 

3,392

 

(22.2

)

Merger-related expense

 

 

 

(913

)

 

353

 

 

7,401

 

 

49,738

 

nm

Earnout liability adjustments

 

 

 

 

 

10,457

 

 

 

 

 

nm

Loss on early extinguishment of debt, net

1,904

 

 

 

 

4,592

 

 

 

 

 

nm

Valuation adjustment to Visa derivative

 

 

 

1,111

 

 

2,500

 

 

 

 

 

nm

Restructuring charges

3,220

 

 

1,259

 

 

(66

)

 

18

 

 

19

 

nm

Other operating expenses

34,458

 

 

29,621

 

 

30,601

 

 

29,217

 

 

25,450

 

35.4

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest expense

276,279

 

 

266,121

 

 

276,310

 

 

264,126

 

 

292,410

 

(5.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

42,116

 

 

206,632

 

 

186,985

 

 

210,824

 

 

160,574

 

(73.8

)

Income tax expense

3,595

 

 

54,948

 

 

51,259

 

 

54,640

 

 

40,388

 

(91.1

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income

38,521

 

 

151,684

 

 

135,726

 

 

156,184

 

 

120,186

 

(67.9

)

 

 

 

 

 

 

 

 

 

 

 

 

Less: Preferred stock dividends

8,291

 

 

8,291

 

 

8,291

 

 

3,150

 

 

3,150

 

163.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

$

30,230

 

 

143,393

 

 

127,435

 

 

153,034

 

 

117,036

 

(74.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, basic

$

0.21

 

 

0.98

 

 

0.84

 

 

0.97

 

 

0.73

 

(71.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, diluted

0.20

 

 

0.97

 

 

0.83

 

 

0.96

 

 

0.72

 

(71.7

)

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

0.33

 

 

0.30

 

 

0.30

 

 

0.30

 

 

0.30

 

10.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets *

0.32

%

 

1.27

 

 

1.14

 

 

1.34

 

 

1.06

 

(74

)bps

Return on average common equity *

2.75

 

 

13.08

 

 

11.36

 

 

13.90

 

 

10.98

 

(823

)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

147,311

 

 

146,948

 

 

152,238

 

 

157,389

 

 

160,927

 

(8.5

)%

Weighted average common shares outstanding, diluted

148,401

 

 

148,529

 

 

154,043

 

 

159,077

 

 

162,760

 

(8.8

)

 

 

 

 

 

 

 

 

 

 

 

 

nm - not meaningful

 

 

 

 

 

 

 

 

 

 

 

bps - basis points

 

 

 

 

 

 

 

 

 

 

 

* - ratios are annualized

 

 

 

 

 

 

 

 

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET DATA

 

March 31, 2020

 

December 31, 2019

 

March 31, 2019

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

(In thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Cash and due from banks

 

$

652,451

 

 

$

535,846

 

 

$

519,681

 

Interest-bearing funds with Federal Reserve Bank

 

1,020,775

 

 

553,390

 

 

688,470

 

Interest earning deposits with banks

 

20,717

 

 

20,635

 

 

24,147

 

Federal funds sold and securities purchased under resale agreements

 

129,891

 

 

77,047

 

 

33,627

 

Cash and cash equivalents

 

1,823,834

 

 

1,186,918

 

 

1,265,925

 

 

 

 

 

 

 

 

Investment securities available for sale, at fair value

 

6,937,240

 

 

6,778,670

 

 

6,808,191

 

Mortgage loans held for sale, at fair value

 

119,841

 

 

115,173

 

 

55,970

 

 

 

 

 

 

 

 

Loans, net of deferred fees and costs

 

38,258,024

 

 

37,162,450

 

 

35,634,501

 

Allowance for loan losses

 

(493,452

)

 

(281,402

)

 

(257,036

)

Loans, net

 

37,764,572

 

 

36,881,048

 

 

35,377,465

 

 

 

 

 

 

 

 

Cash surrender value of bank-owned life insurance

 

1,031,544

 

 

775,665

 

 

761,098

 

Premises and equipment, net

 

482,462

 

 

493,940

 

 

479,965

 

Goodwill

 

497,267

 

 

497,267

 

 

485,000

 

Other intangible assets

 

53,032

 

 

55,671

 

 

74,683

 

Other assets

 

1,909,793

 

 

1,418,930

 

 

1,321,728

 

Total assets

 

$

50,619,585

 

 

$

48,203,282

 

 

$

46,630,025

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Non-interest-bearing deposits

 

$

9,659,451

 

 

$

9,439,485

 

 

$

9,144,315

 

Interest-bearing deposits

 

30,167,134

 

 

28,966,019

 

 

28,930,875

 

 

 

 

 

 

 

 

Total deposits

 

39,826,585

 

 

38,405,504

 

 

38,075,190

 

 

 

 

 

 

 

 

Federal funds purchased and securities sold under repurchase agreements

 

312,776

 

 

165,690

 

 

314,383

 

Other short-term borrowings

 

1,175,000

 

 

1,753,560

 

 

853,000

 

Long-term debt

 

3,152,339

 

 

2,153,897

 

 

2,106,037

 

Other liabilities

 

1,087,680

 

 

782,941

 

 

683,662

 

Total liabilities

 

45,554,380

 

 

43,261,592

 

 

42,032,272

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

Preferred stock - no par value. Authorized 100,000,000 shares; issued
22,000,000, 22,000,000, and 8,000,000

 

537,145

 

 

537,145

 

 

195,140

 

Common stock - $1.00 par value. Authorized 342,857,143 shares; issued 167,359,689, 166,800,623, and 165,929,349; outstanding 147,266,662, 147,157,596, and 157,454,007

 

167,360

 

 

166,801

 

 

165,929

 

Additional paid-in capital

 

3,821,357

 

 

3,819,336

 

 

3,794,262

 

Treasury stock, at cost – 20,093,027, 19,643,027, and 8,475,342 shares

 

(731,806

)

 

(715,560

)

 

(319,898

)

Accumulated other comprehensive income (loss), net

 

256,911

 

 

65,641

 

 

(18,342

)

Retained earnings

 

1,014,238

 

 

1,068,327

 

 

780,662

 

Total shareholders’ equity

 

5,065,205

 

 

4,941,690

 

 

4,597,753

 

Total liabilities and shareholders' equity

 

$

50,619,585

 

 

$

48,203,282

 

 

$

46,630,025

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES AND YIELDS/RATES (1)

 

 

 

 

 

 

 

(Unaudited)

 

2020

 

2019

(Dollars in thousands)

 

 

 

 

 

 

 

First

 

Fourth

Third

Second

First

 

 

Quarter

 

Quarter

Quarter

Quarter

Quarter

Interest Earning Assets

 

 

 

 

 

 

 

Investment securities (2) (4)

 

$

6,680,047

 

 

6,696,768

 

6,831,036

 

6,955,386

 

6,536,199

 

Yield

 

3.09

%

 

3.12

 

3.14

 

3.03

 

3.06

 

Trading account assets (5)

 

$

6,306

 

 

7,986

 

5,519

 

4,853

 

2,049

 

Yield

 

2.70

%

 

2.69

 

4.01

 

1.83

 

1.30

 

Commercial loans (3) (4)

 

$

27,607,343

 

 

26,698,202

 

26,568,194

 

26,353,973

 

26,140,672

 

Yield

 

4.57

%

 

4.82

 

5.09

 

5.13

 

5.16

 

Consumer loans (3)

 

$

9,985,702

 

 

9,809,832

 

9,633,603

 

9,423,427

 

9,180,679

 

Yield

 

4.60

%

 

5.07

 

5.08

 

5.17

 

5.10

 

Allowance for loan losses

 

$

(368,033

)

 

(269,052

)

(258,024

)

(259,284

)

(252,815

)

Loans, net (3)

 

$

37,225,012

 

 

36,238,982

 

35,943,773

 

35,518,116

 

35,068,536

 

Yield

 

4.62

%

 

4.93

 

5.13

 

5.17

 

5.17

 

Mortgage loans held for sale

 

$

86,415

 

 

117,909

 

99,556

 

70,497

 

34,913

 

Yield

 

3.67

%

 

3.77

 

3.93

 

4.27

 

4.48

 

Federal funds sold, due from Federal Reserve Bank, and other short-term investments

 

$

652,130

 

 

514,635

 

513,160

 

511,488

 

679,477

 

Yield

 

1.02

%

 

1.71

 

2.08

 

2.37

 

2.45

 

Federal Home Loan Bank and Federal Reserve Bank Stock (5)

 

$

284,082

 

 

278,586

 

254,994

 

234,949

 

211,408

 

Yield

 

3.38

%

 

2.85

 

3.85

 

3.29

 

4.82

 

Total interest earning assets

 

$

44,933,992

 

 

43,854,866

 

43,648,038

 

43,295,289

 

42,532,582

 

Yield

 

4.33

%

 

4.60

 

4.78

 

4.79

 

4.80

 

Interest-Bearing Liabilities

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

6,445,986

 

 

6,381,282

 

6,138,810

 

6,335,953

 

6,393,304

 

Rate

 

0.51

%

 

0.60

 

0.69

 

0.71

 

0.68

 

Money Market accounts

 

$

11,548,014

 

 

10,526,296

 

10,138,783

 

10,024,836

 

10,244,556

 

Rate

 

1.00

%

 

1.13

 

1.26

 

1.23

 

1.18

 

Savings deposits

 

$

926,822

 

 

915,640

 

900,366

 

904,183

 

901,059

 

Rate

 

0.05

%

 

0.05

 

0.05

 

0.05

 

0.06

 

Time deposits under $100,000

 

$

1,761,741

 

 

1,873,350

 

2,100,492

 

2,245,878

 

2,238,568

 

Rate

 

1.64

%

 

1.27

 

1.39

 

1.39

 

1.24

 

Time deposits over $100,000

 

$

5,051,705

 

 

5,198,266

 

5,957,691

 

6,331,665

 

6,211,067

 

Rate

 

2.04

%

 

1.51

 

1.69

 

1.70

 

1.60

 

Non-maturing brokered deposits

 

$

1,376,669

 

 

1,156,131

 

993,078

 

766,718

 

937,629

 

Rate

 

1.42

%

 

1.84

 

2.47

 

2.46

 

2.60

 

Brokered time deposits

 

$

2,166,496

 

 

2,121,069

 

2,119,149

 

1,985,589

 

1,845,819

 

Rate

 

2.11

%

 

2.16

 

2.27

 

2.28

 

2.13

 

Total interest-bearing deposits

 

$

29,277,433

 

 

28,172,034

 

28,348,369

 

28,594,822

 

28,772,002

 

Rate

 

1.18

%

 

1.16

 

1.32

 

1.30

 

1.24

 

Federal funds purchased and securities sold under repurchase agreements

 

$

167,324

 

 

192,731

 

221,045

 

300,168

 

233,076

 

Rate

 

0.30

%

 

0.24

 

0.22

 

0.20

 

0.22

 

Other short-term borrowings

 

$

1,384,362

 

 

1,565,507

 

1,307,370

 

1,090,581

 

517,456

 

Rate

 

1.66

%

 

1.87

 

2.31

 

2.59

 

2.58

 

Long-term debt

 

$

2,678,651

 

 

2,153,983

 

2,286,221

 

2,114,819

 

1,983,910

 

Rate

 

2.78

%

 

3.07

 

3.32

 

3.53

 

3.33

 

Total interest-bearing liabilities

 

$

33,507,770

 

 

32,084,255

 

32,163,005

 

32,100,390

 

31,506,444

 

Rate

 

1.30

%

 

1.30

 

1.47

 

1.48

 

1.38

 

Non-interest-bearing demand deposits

 

$

9,409,774

 

 

9,706,784

 

9,365,776

 

9,304,839

 

9,054,949

 

Cost of funds

 

1.04

%

 

1.02

 

1.16

 

1.15

 

1.07

 

Net interest margin

 

3.37

%

 

3.65

 

3.69

 

3.69

 

3.78

 

Taxable equivalent adjustment (4)

 

$

786

 

 

769

 

819

 

811

 

630

 

(1) Yields and rates are annualized.

 

 

 

 

 

 

 

(2) Excludes net unrealized gains and losses.

 

 

 

 

 

 

 

(3) Average loans are shown net of unearned income. Non-performing loans are included.

 

 

(4) Reflects taxable-equivalent adjustments, using the statutory federal income tax rate of 21%, in adjusting interest on tax-exempt loans and investment securities to a taxable-equivalent basis.

(5) Included as a component of other assets on the consolidated balance sheet.

 

Synovus

 

 

 

 

 

 

 

 

 

 

LOANS OUTSTANDING BY TYPE

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

Total Loans

 

Total Loans

 

Linked
Quarter

 

Total Loans

 

Year/Year

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

Loan Type

.

March 31, 2020

 

December 31, 2019

 

% Change (1)

 

March 31, 2019

 

% Change

Commercial, Financial, and Agricultural

 

$

11,018,155

 

 

$

10,252,859

 

 

30.0

%

 

$

9,566,403

 

 

15.2

%

Owner-Occupied

 

6,643,287

 

 

6,529,811

 

 

7.0

 

 

6,542,506

 

 

1.5

 

Total Commercial & Industrial

 

17,661,442

 

 

16,782,670

 

 

21.1

 

 

16,108,909

 

 

9.6

 

Multi-Family

 

2,137,757

 

 

2,023,769

 

 

22.7

 

 

2,004,473

 

 

6.6

 

Hotels

 

1,314,053

 

 

1,284,291

 

 

9.3

 

 

1,179,395

 

 

11.4

 

Office Buildings

 

2,264,844

 

 

2,255,308

 

 

1.7

 

 

2,309,215

 

 

(1.9

)

Shopping Centers

 

1,718,513

 

 

1,762,598

 

 

(10.1

)

 

1,654,971

 

 

3.8

 

Warehouses

 

761,863

 

 

713,602

 

 

27.2

 

 

725,862

 

 

5.0

 

Other Investment Property

 

1,060,761

 

 

1,003,111

 

 

23.1

 

 

979,578

 

 

8.3

 

Total Investment Properties

 

9,257,791

 

 

9,042,679

 

 

9.6

 

 

8,853,494

 

 

4.6

 

1-4 Family Construction

 

268,695

 

 

284,594

 

 

(22.5

)

 

289,607

 

 

(7.2

)

1-4 Family Investment Mortgage

 

482,773

 

 

495,421

 

 

(10.3

)

 

549,120

 

 

(12.1

)

Total 1-4 Family Properties

 

751,468

 

 

780,015

 

 

(14.7

)

 

838,727

 

 

(10.4

)

Commercial Development

 

107,351

 

 

109,862

 

 

(9.2

)

 

147,516

 

 

(27.2

)

Residential Development

 

289,769

 

 

269,377

 

 

30.4

 

 

215,814

 

 

34.3

 

Land Acquisition

 

264,822

 

 

278,551

 

 

(19.8

)

 

231,595

 

 

14.3

 

Land and Development

 

661,942

 

 

657,790

 

 

2.5

 

 

594,925

 

 

11.3

 

Total Commercial Real Estate

 

10,671,201

 

 

10,480,484

 

 

7.3

 

 

10,287,146

 

 

3.7

 

Consumer Mortgages

 

5,608,121

 

 

5,546,368

 

 

4.5

 

 

5,365,635

 

 

4.5

 

Home Equity Lines

 

1,778,862

 

 

1,713,157

 

 

15.4

 

 

1,606,227

 

 

10.7

 

Credit Cards

 

261,581

 

 

268,841

 

 

(10.9

)

 

252,762

 

 

3.5

 

Other Consumer Loans

 

2,302,349

 

 

2,396,294

 

 

(15.8

)

 

2,037,477

 

 

13.0

 

Total Consumer

 

9,950,913

 

 

9,924,660

 

 

1.1

 

 

9,262,101

 

 

7.4

 

Unearned Income

 

(25,532

)

 

(25,364

)

 

2.7

 

 

(23,655

)

 

7.9

 

Total

 

$

38,258,024

 

 

$

37,162,450

 

 

11.9

%

 

$

35,634,501

 

 

7.4

%

(1) Percentage change is annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING LOANS COMPOSITION

 

 

 

 

 

 

 

 

(Unaudited)

 

Total
Non-performing
Loans

 

Total
Non-performing
Loans

 

Linked
Quarter

 

Total
Non-performing
Loans

 

Year/Year

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

Loan Type

 

March 31, 2020

 

December 31, 2019

 

% Change

 

March 31, 2019

 

% Change

Commercial, Financial, and Agricultural

 

$

99,287

 

 

$

56,186

 

 

76.7

%

 

$

85,917

 

 

15.6

%

Owner-Occupied

 

17,357

 

 

9,780

 

 

77.5

 

 

13,813

 

 

25.7

 

Total Commercial & Industrial

 

116,644

 

 

65,966

 

 

76.8

 

 

99,730

 

 

17.0

 

Multi-Family

 

356

 

 

385

 

 

(7.5

)

 

1,503

 

 

(76.3

)

Hotels

 

 

 

 

 

 

 

 

 

7,346

 

 

nm

Office Buildings

 

836

 

 

600

 

 

39.3

 

 

221

 

 

278.3

 

Shopping Centers

 

712

 

 

718

 

 

(0.8

)

 

676

 

 

5.3

 

Other Investment Property

 

308

 

 

321

 

 

(4.0

)

 

 

 

nm

Total Investment Properties

 

2,212

 

 

2,024

 

 

9.3

 

 

9,746

 

 

(77.3

)

1-4 Family Construction

 

278

 

 

698

 

 

(60.2

)

 

445

 

 

(37.5

)

1-4 Family Investment Mortgage

 

2,047

 

 

1,555

 

 

31.6

 

 

1,522

 

 

34.5

 

Total 1-4 Family Properties

 

2,325

 

 

2,253

 

 

3.2

 

 

1,967

 

 

18.2

 

Commercial Development

 

596

 

 

87

 

 

585.1

 

 

46

 

 

nm

Residential Development

 

561

 

 

395

 

 

42.0

 

 

1,569

 

 

(64.2

)

Land Acquisition

 

1,043

 

 

628

 

 

66.1

 

 

1,035

 

 

0.8

 

Land and Development

 

2,200

 

 

1,110

 

 

98.2

 

 

2,650

 

 

(17.0

)

Total Commercial Real Estate

 

6,737

 

 

5,387

 

 

25.1

 

 

14,363

 

 

(53.1

)

Consumer Mortgages

 

13,571

 

 

12,545

 

 

8.2

 

 

11,556

 

 

17.4

 

Home Equity Lines

 

12,475

 

 

12,034

 

 

3.7

 

 

14,078

 

 

(11.4

)

Other Consumer Loans

 

6,860

 

 

5,704

 

 

20.3

 

 

4,249

 

 

61.4

 

Total Consumer

 

32,906

 

 

30,283

 

 

8.7

 

 

29,883

 

 

10.1

 

Total

 

$

156,287

 

 

$

101,636

 

 

53.8

%

 

$

143,976

 

 

8.6

%

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY DATA

 

 

(Unaudited)

 

 

 

 

 

 

 

 

(Dollars in thousands)

2020

 

2019

 

First Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First

 

Fourth

 

Third

 

Second

 

First

 

20 vs '19

 

.

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Loans (NPLs)

 

$

156,287

 

 

101,636

 

 

115,915

 

 

124,083

 

 

143,976

 

 

8.6

%

Other Real Estate and Other Assets

 

33,679

 

 

35,810

 

 

35,400

 

 

15,479

 

 

11,341

 

 

197.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Assets (NPAs)

 

189,966

 

 

137,446

 

 

151,315

 

 

139,562

 

 

155,317

 

 

22.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses (ALL)

 

493,452

 

 

281,402

 

 

265,013

 

 

257,376

 

 

257,036

 

 

92.0

 

Reserve for Unfunded Commitments

 

38,420

 

 

1,375

 

 

1,496

 

 

995

 

 

1,070

 

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses (ACL)

 

531,872

 

 

282,777

 

 

266,509

 

 

258,371

 

 

258,106

 

 

106.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Charge-Offs - Quarter

 

20,061

 

 

8,821

 

 

19,925

 

 

11,778

 

 

17,088

 

 

 

Net Charge-Offs / Average Loans - Quarter (1)

 

0.21

%

 

0.10

 

 

0.22

 

 

0.13

 

 

0.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NPLs / Loans

 

0.41

 

 

0.27

 

 

0.32

 

 

0.34

 

 

0.40

 

 

 

NPAs / Loans, ORE and specific other assets

 

0.50

 

 

0.37

 

 

0.42

 

 

0.39

 

 

0.44

 

 

 

ACL/Loans

 

1.39

 

 

0.76

 

 

0.73

 

 

0.71

 

 

0.72

 

 

 

ALL/Loans

 

1.29

 

 

0.76

 

 

0.73

 

 

0.71

 

 

0.72

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACL/NPLs

 

340.32

 

 

278.23

 

 

229.92

 

 

208.22

 

 

179.27

 

 

 

ALL/NPLs

 

315.74

 

 

276.87

 

 

228.63

 

 

207.42

 

 

178.53

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past Due Loans over 90 days and Still Accruing

 

$

6,398

 

 

15,943

 

 

15,660

 

 

5,851

 

 

4,486

 

 

42.6

 

As a Percentage of Loans Outstanding

 

0.02

%

 

0.04

 

 

0.04

 

 

0.02

 

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Past Due Loans and Still Accruing

 

$

83,235

 

 

123,793

 

 

88,219

 

 

80,792

 

 

88,135

 

 

(5.6)

 

As a Percentage of Loans Outstanding

 

0.22

%

 

0.33

 

 

0.24

 

 

0.22

 

 

0.25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing Troubled Debt Restructurings (TDRs)

 

$

160,128

 

 

133,145

 

 

130,019

 

 

126,369

 

 

112,205

 

 

42.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Ratio is annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED CAPITAL INFORMATION (1)

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2020

 

December 31, 2019

 

March 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital

 

$

4,290,634

 

 

4,280,604

 

 

3,985,533

 

 

 

 

 

 

 

Total Risk-Based Capital

 

5,298,113

 

 

5,123,381

 

 

4,803,639

 

 

 

 

 

 

 

Common Equity Tier 1 Capital Ratio

 

8.72

%

 

8.95

 

 

9.52

 

 

 

 

 

 

 

Tier 1 Capital Ratio

 

9.97

 

 

10.23

 

 

10.01

 

 

 

 

 

 

 

Total Risk-Based Capital Ratio

 

12.31

 

 

12.25

 

 

12.06

 

 

 

 

 

 

 

Tier 1 Leverage Ratio

 

8.94

 

 

9.16

 

 

8.81

 

 

 

 

 

 

 

Common Equity as a Percentage of Total Assets (2)

 

8.95

 

 

9.14

 

 

9.44

 

 

 

 

 

 

 

Tangible Common Equity Ratio (3) (5)

 

7.94

 

 

8.08

 

 

8.34

 

 

 

 

 

 

 

Book Value Per Common Share (4)

 

$

30.75

 

 

29.93

 

 

27.96

 

 

 

 

 

 

 

Tangible Book Value Per Common Share (3)

 

27.01

 

 

26.17

 

 

24.41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Current quarter regulatory capital information is preliminary.

 

 

 

 

 

 

(2) Common equity consists of Total Shareholders' Equity less Preferred Stock.

 

 

 

 

(3) Excludes the carrying value of goodwill and other intangible assets from common equity and total assets.

 

 

 

 

(4) Book Value Per Common Share consists of Total Shareholders' Equity less Preferred Stock divided by total common shares outstanding.

(5) See "Non-GAAP Financial Measures" of this report for applicable reconciliation.

 

 

 

 

 

Media Contact
Lee Underwood
Media Relations
(706) 644-0528

Investor Contact
Kevin Brown
Investor Relations
(706) 644-0948

Source: Synovus Financial Corp.