SNV
$35.28
Synovus Financial
$.19
.54%
Earnings Details
2nd Quarter June 2019
Tuesday, July 16, 2019 6:30:00 AM
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Summary

Synovus Financial Reports In-line

Synovus Financial (SNV) reported 2nd Quarter June 2019 earnings of $1.00 per share on revenue of $605.9 million. The consensus earnings estimate was $0.99 per share on revenue of $480.3 million. The Earnings Whisper number was $1.00 per share. Revenue grew 50.3% 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
$1.00
Earnings Whisper
$1.00
Consensus Estimate
$0.99
Reported Revenue
$605.9 Mil
Revenue Estimate
$480.3 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Synovus Announces Earnings for the Second Quarter 2019

Diluted Earnings per Share of $0.96, up 5.5% vs. $0.91 in 2Q18

Adjusted Diluted Earnings per Share of $1.00, up 8.4% vs. $0.92 in 2Q18

COLUMBUS, Ga.--(BUSINESS WIRE)--Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended June 30, 2019.

Second Quarter 2019 Highlights

  • Diluted EPS of $0.96; adjusted diluted EPS of $1.00, up 1.5% sequentially and 8.4% year over year.
  • Period-end loan growth of $504.1 million, or 5.7% annualized, from prior quarter.
  • Average non-interest-bearing deposits excluding public funds up $312.4 million or 15.1% sequentially.
  • Non-interest income growth of 13.1% sequentially, or 15.0% on an adjusted basis.
  • Key credit metrics continued to improve, with non-performing asset (NPA) and non-performing loan ratios declining 5 and 6 basis points, respectively.
  • Completed integration of all Florida Community Bank (FCB) systems, customers, branches, and branding.
  • Increased the 2019 share repurchase authorization from $400 million to $725 million.
  • Announced and priced a public offering of $350 million of Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series E.

Second Quarter Summary

 

Reported

 

Adjusted

(dollars in thousands)

2Q19

 

1Q19

 

2Q18

 

2Q19

 

1Q19

 

2Q18

Net income available to common shareholders

$

153,034

 

 

$

117,036

 

 

$

108,622

 

 

$158,892

 

 

$160,155

 

 

$109,824

 

Diluted earnings per share

0.96

 

 

0.72

 

 

0.91

 

 

1.00

 

 

0.98

 

 

0.92

 

Total loans

36,138,561

 

 

35,634,501

 

 

25,134,056

 

 

N/A

 

 

N/A

 

 

N/A

 

Total deposits

37,966,722

 

 

38,075,190

 

 

26,442,688

 

 

N/A

 

 

N/A

 

 

N/A

 

Total revenues

487,880

 

 

477,183

 

 

358,084

 

 

488,270

 

 

476,250

 

 

359,417

 

Return on avg assets

1.35

%

 

1.06

%

 

1.42

%

 

1.40

%

 

1.45

%

 

1.43

%

Return on avg common equity

14.32

 

 

10.98

 

 

15.39

 

 

14.87

 

 

15.03

 

 

15.56

 

Return on avg tangible common equity

16.66

 

 

12.88

 

 

15.80

 

 

17.29

 

 

17.52

 

 

15.97

 

Net interest margin

3.69

 

 

3.78

 

 

3.86

 

 

3.48

 

 

3.59

 

 

N/A

 

Efficiency ratio

54.14

 

 

61.28

 

 

56.99

 

 

52.08

 

 

50.24

 

 

56.41

 

Net charge-off ratio

0.13

 

 

0.19

 

 

0.29

 

 

N/A

 

 

N/A

 

 

N/A

 

NPA ratio

0.39

 

 

0.44

 

 

0.50

 

 

N/A

 

 

N/A

 

 

N/A

 

“Our results in the second quarter reflect the strength of our core business and our geography, with broad-based loan growth and solid credit and profitability metrics,” said Kessel D. Stelling, Synovus chairman and CEO. “We are pleased with the early wins in our expanded Florida footprint as we introduce our broader capabilities to new customers and prospects. We not only expect continued successes in that region, but across our entire footprint, as our core and specialty bankers work together to serve customers. The real and sustaining competitive differentiator for our company remains our talented team that is passionate about the important work they do and proud to represent our brand of relationship-centered banking and financial services in our markets.”

Balance Sheet

Loans**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

2Q19

 

1Q19

 

Linked

Quarter

Change

 

Linked

Quarter %

Change*

 

2Q18

 

Year/Year

Change

 

Year/Year

% Change

Commercial & industrial

$

16,247.5

 

 

$

16,127.6

 

 

$

119.9

 

 

3.0

%

 

$

12,275.5

 

 

$

3,972.1

 

 

32.4

 

Commercial real estate

10,348.4

 

 

10,268.4

 

 

80.0

 

 

3.1

 

 

6,644.2

 

 

3,704.3

 

 

55.8

 

Consumer

9,566.1

 

 

9,262.1

 

 

304.0

 

 

13.2

 

 

6,237.1

 

 

3,329.0

 

 

53.4

 

Unearned income

(23.6

)

 

(23.7

)

 

0.1

 

 

(1.7

)

 

(22.7

)

 

(0.9

)

 

3.8

 

Total loans

$

36,138.6

 

 

$

35,634.5

 

 

$

504.1

 

 

5.7

%

 

$

25,134.1

 

 

$

11,004.5

 

 

43.8

%

* Annualized

** Amounts may not total due to rounding

  • Total loans ended the quarter at $36.14 billion, up $504.1 million or 5.7% annualized from the previous quarter, with growth across all categories.
  • Steady growth in commercial and industrial loans, with strong contributions from a number of markets and teams.
  • Commercial real estate loan growth led by investment properties, including multi-family, hotel and shopping centers, which grew a combined $121.2 million, partially offset by declines in office and warehouse. Continued positive trends in the consumer category, driven by lending partnerships, up $211.9 million, and by mortgage and HELOC growth, up $42.1 million and $44.5 million, respectively.

Deposits**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

2Q19

 

1Q19

 

Linked

Quarter

Change

 

Linked

Quarter %

Change*

 

2Q18

 

Year/Year

Change

 

Year/Year

% Change

Non-interest-bearing DDA

$

8,577.6

 

 

$

8,440.5

 

 

$

137.1

 

 

6.5

%

 

$

6,820.0

 

 

$

1,757.6

 

 

25.8

%

Interest-bearing DDA

4,847.2

 

 

4,911.2

 

 

(64.0

)

 

(5.2

)

 

4,060.3

 

 

786.9

 

 

19.4

 

Money market

8,952.9

 

 

8,912.5

 

 

40.3

 

 

1.8

 

 

7,388.2

 

 

1,564.7

 

 

21.2

 

Savings

891.2

 

 

903.8

 

 

(12.6

)

 

(5.6

)

 

822.6

 

 

68.6

 

 

8.3

 

Public funds

4,351.3

 

 

4,630.0

 

 

(278.7

)

 

(24.1

)

 

2,224.6

 

 

2,126.7

 

 

95.6

 

Time deposits

7,343.0

 

 

7,568.1

 

 

(225.1

)

 

(11.9

)

 

3,275.9

 

 

4,067.0

 

 

124.1

 

Brokered deposits

3,003.5

 

 

2,709.0

 

 

294.5

 

 

43.6

 

 

1,851.0

 

 

1,152.5

 

 

62.3

 

Total deposits

$

37,966.7

 

 

$

38,075.2

 

 

$

(108.5

)

 

(1.1

)%

 

$

26,442.7

 

 

$

11,524.0

 

 

43.6

%

* Annualized

** Amounts may not total due to rounding

  • Total deposits ended the quarter at $37.97 billion, down $108.5 million or 1.1% annualized from first quarter 2019.
  • Managed deposit cost and mix during the quarter, with growth in core transaction deposits of $100.8 million and a lower composition of public funds and CDs. Core transaction deposits consist of non-interest bearing, NOW/savings, and money market deposits excluding public funds.
  • The decline in public funds and CDs was partially offset by growth in brokered deposits of $294.5 million, which replaced maturing CDs at shorter durations and lower rates.
  • On an average basis, non-interest bearing demand deposit accounts grew $249.9 million, or 11.1% annualized over the first quarter. Excluding the impact of public funds deposit runoff, non-interest bearing demand deposits increased $312.4 million from the previous quarter.
  • The loan to deposit ratio was 95.2%, up from 93.6% in the prior quarter.

Income Statement Summary**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data)

2Q19

 

1Q19

 

Linked

Quarter

Change

 

Linked

Quarter %

Change

 

2Q18

 

Year/Year

Change

 

Year/Year

% Change

Net interest income

$

397,262

 

 

$

397,175

 

 

$

87

 

 

nm

 

 

$

284,577

 

 

$

112,685

 

 

39.6

%

Non-interest income

89,807

 

 

79,378

 

 

10,429

 

 

13.1

%

 

73,387

 

 

16,420

 

 

22.4

 

Non-interest expense

264,126

 

 

292,410

 

 

(28,284

)

 

(9.7

)

 

204,057

 

 

60,069

 

 

29.4

 

Provision expense

12,119

 

 

23,569

 

 

(11,450

)

 

(48.6

)

 

11,790

 

 

329

 

 

2.8

 

Income before taxes

$

210,824

 

 

$

160,574

 

 

$

50,250

 

 

31.3

%

 

$

142,117

 

 

$

68,707

 

 

48.3

%

Income tax expense

54,640

 

 

40,388

 

 

14,252

 

 

35.3

 

 

30,936

 

 

23,704

 

 

76.6

 

Preferred stock dividends

3,150

 

 

3,150

 

 

 

 

nm

 

 

2,559

 

 

591

 

 

23.1

 

Net income available to common shareholders

$

153,034

 

 

$

117,036

 

 

$

35,998

 

 

30.8

%

 

$

108,622

 

 

$

44,412

 

 

40.9

%

Weighted average common shares outstanding, diluted

159,077

 

 

162,760

 

 

(3,683

)

 

(2.3

)

 

119,139

 

 

39,938

 

 

33.5

 

Diluted earnings per share

$

0.96

 

 

$

0.72

 

 

$

0.24

 

 

33.8

%

 

$

0.91

 

 

$

0.05

 

 

5.5

%

Adjusted diluted earnings per share

$

1.00

 

 

$

0.98

 

 

$

0.02

 

 

1.5

%

 

$

0.92

 

 

$

0.08

 

 

8.4

%

** Amounts may not total due to rounding

nm - not meaningful

Core Performance

  • Total revenues were $487.9 million in the second quarter, up $10.7 million or 2.2% from the previous quarter.
  • Net interest income was flat compared to the prior quarter.
  • Net interest margin was 3.69%, down 9 basis points from the previous quarter; includes $21.0 million or 21 basis points of purchase accounting adjustments (PAA) compared to $18.8 million or 19 basis points in first quarter.
    • The sequential decrease in net interest margin was driven by the declining rate environment and full quarter effect of subordinated debt that was issued in the first quarter.
    • Excluding the impact of PAA, earning asset yields declined 3 basis points and the effective cost of funds increased 8 basis points.
  • Non-interest income increased $10.4 million or 13.1% from the prior quarter and $16.4 million or 22.4% compared to second quarter 2018.
    • The sequential increase was primarily attributable to a $3.5 million, or 70.9%, increase in capital markets income and a $2.8 million, or 56.4%, increase in mortgage banking income.
  • Non-interest expense declined $28.3 million or 9.7% due to lower merger-related expenses, and adjusted non-interest expense increased $14.1 million or 5.8% from the prior quarter.
    • The increase in adjusted expenses resulted mainly from higher producer commissions, increased servicing fees related to growth in our lending partnership portfolio, and higher consulting fees tied to various business and technology initiatives.
    • Employment taxes were seasonally lower by $3.3 million.
  • Provision expense was $12.1 million, an $11.5 million decrease from the previous quarter, primarily due to lower charge-off activity.
  • The effective tax rate was 25.9% for the quarter.

Capital Ratios

 

 

 

 

 

 

 

 

 

2Q19

 

1Q19

 

2Q18

Common equity Tier 1 capital (CET1) ratio

9.61

%

(1)

9.52

%

 

10.12

%

Tier 1 capital ratio

10.09

 

(1)

10.01

 

 

11.25

 

Total risk-based capital ratio

12.11

 

(1)

12.06

 

 

13.08

 

Tier 1 leverage ratio

8.92

 

(1)

8.81

 

 

10.03

 

Tangible common equity ratio(2)

8.56

 

 

8.30

 

 

8.77

 

(1) Ratios are preliminary

(2) Non-GAAP measure; see applicable reconciliation

Capital

  • Capital ratios remained strong and all increased slightly during the quarter.
  • During the second quarter 2019, Synovus announced an increase in the share repurchase authorization from $400 million to $725 million, and completed repurchases of $25.0 million.
    • Year-to-date share repurchases total $345.0 million and share count has declined by 8.0% since January 1, 2019.
  • During the second quarter 2019, Synovus announced and priced a public offering of $350 million of Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series E. This transaction closed on July 1 and is not included in second quarter results.

Second Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on July 16, 2019. 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 $47 billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services through 297 branches in Georgia, Alabama, South Carolina, Florida, and Tennessee. Synovus Bank, a wholly owned subsidiary of Synovus, was named one of American Banker’s “Best Banks to Work For” in 2018 and 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 deposit growth, loan growth and the net interest margin; expectations on our growth strategy, strategic transactions (including the FCB transaction), expense initiatives, capital management and future profitability; expectations on credit trends and key credit metrics; 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 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, 2018, 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; tangible common equity ratio; and common equity Tier 1 capital (CET1) ratio (fully phased-in) 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; the ratio of total shareholders' equity to total assets; and the CET1 capital ratio, 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 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 and common equity Tier 1 capital (CET1) ratio (fully phased-in) are used by management and bank regulators 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)

2Q19

 

1Q19

 

2Q18

Adjusted non-interest income

 

 

 

 

 

Total non-interest income

$

89,807

 

 

$

79,378

 

 

$

73,387

 

Add/subtract: Investment securities losses (gains), net

1,845

 

 

(75

)

 

1,296

 

Subtract/add: (Increase) decrease in fair value of private equity investments, net

(1,455

)

 

(858

)

 

37

 

Adjusted non-interest income

$

90,197

 

 

$

78,445

 

 

$

74,720

 

 

 

 

 

 

 

Adjusted non-interest expense

 

 

 

 

 

Total non-interest expense

$

264,126

 

 

$

292,410

 

 

$

204,057

 

Subtract: Merger-related expense

(7,401

)

 

(49,738

)

 

 

Add: Litigation settlement/contingency expense

 

 

 

 

1,400

 

Subtract: Restructuring charges, net

(18

)

 

(19

)

 

(103

)

Subtract: Fair value adjustment to Visa derivative

$

 

 

$

 

 

$

(2,328

)

Adjusted non-interest expense

$

256,707

 

 

$

242,653

 

 

$

203,026

 

 

 

 

 

 

 

Adjusted total revenues and adjusted tangible efficiency ratio

 

 

 

 

 

Adjusted non-interest expense

$

256,707

 

 

$

242,653

 

 

$

203,026

 

Subtract: Amortization of intangibles

(2,410

)

 

(3,392

)

 

(292

)

Adjusted tangible non-interest expense

$

254,297

 

 

$

239,261

 

 

$

202,734

 

 

 

 

 

 

 

Net interest income

$

397,262

 

 

$

397,175

 

 

$

284,577

 

Add: Tax equivalent adjustment

811

 

 

630

 

 

120

 

Add: Total non-interest income

89,807

 

 

79,378

 

 

73,387

 

Total FTE revenues

487,880

 

 

477,183

 

 

358,084

 

Add/subtract: Investment securities losses (gains), net

1,845

 

 

(75

)

 

1,296

 

Subtract/add: (Increase) decrease in fair value of private equity investments, net

(1,455

)

 

(858

)

 

37

 

Adjusted total revenues

$

488,270

 

 

$

476,250

 

 

$

359,417

 

Efficiency ratio-FTE

54.14

%

 

61.28

%

 

56.99

%

Adjusted tangible efficiency ratio

52.08

 

 

50.24

 

 

56.41

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data)

2Q19

 

1Q19

 

2Q18

Adjusted Return on Average Assets

 

 

 

 

 

Net income

$

156,184

 

 

$

120,186

 

 

$

111,181

 

Subtract: Income tax expense, net related to State Tax Reform

 

 

 

 

(608

)

Add: Merger-related expense

7,401

 

 

49,738

 

 

 

Subtract: Litigation settlement/contingency expense

 

 

 

 

(1,400

)

Add: Restructuring charges, net

18

 

 

19

 

 

103

 

Add: Fair value adjustment to Visa derivative

 

 

 

 

2,328

 

Add/subtract: Investment securities losses (gains), net

1,845

 

 

(75

)

 

1,296

 

Subtract/add: (Increase) decrease in fair value of private equity investments, net

(1,455

)

 

(858

)

 

37

 

Subtract: Tax effect of adjustments

(1,951

)

 

(5,705

)

 

(554

)

Adjusted net income

$

162,042

 

 

$

163,305

 

 

$

112,383

 

Net income annualized

$

626,452

 

 

$

487,421

 

 

$

445,946

 

Adjusted net income annualized

$

649,949

 

 

$

662,293

 

 

$

450,767

 

Total average assets

$

46,549,432

 

 

$

45,794,621

 

 

$

31,502,758

 

Return on average assets

1.35

%

 

1.06

%

 

1.42

%

Adjusted return on average assets

1.40

 

 

1.45

 

 

1.43

 

 

 

 

 

 

 

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

 

 

 

 

 

Net income available to common shareholders

$

153,034

 

 

$

117,036

 

 

$

108,622

 

Subtract: Income tax expense, net related to State Tax Reform

 

 

 

 

(608

)

Add: Merger-related expense

7,401

 

 

49,738

 

 

 

Subtract: Litigation settlement/contingency expense

 

 

 

 

(1,400

)

Add: Restructuring charges, net

18

 

 

19

 

 

103

 

Add: Fair value adjustment to Visa derivative

 

 

 

 

2,328

 

Add/subtract: Investment securities losses (gains), net

1,845

 

 

(75

)

 

1,296

 

Subtract/add: (Increase) decrease in fair value of private equity investments, net

(1,455

)

 

(858

)

 

37

 

Subtract: Tax effect of adjustments

(1,951

)

 

(5,705

)

 

(554

)

Adjusted net income available to common shareholders

$

158,892

 

 

$

160,155

 

 

$

109,824

 

Weighted average common shares outstanding, diluted

159,077

 

 

162,760

 

 

119,139

 

Net income per common share, diluted

$

0.96

 

 

$

0.72

 

 

$

0.91

 

Adjusted net income per common share, diluted

1.00

 

 

0.98

 

 

0.92

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

(dollars in thousands)

2Q19

 

1Q19

 

2Q18

 

 

 

 

 

 

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

$

153,034

 

 

$

117,036

 

 

$

108,622

 

Subtract: Income tax expense, net related to State Tax Reform

 

 

 

 

(608

)

Add: Merger-related expense

7,401

 

 

49,738

 

 

 

Subtract: Litigation settlement/contingency expense

 

 

 

 

(1,400

)

Add: Restructuring charges, net

18

 

 

19

 

 

103

 

Add: Fair value adjustment to Visa derivative

 

 

 

 

2,328

 

Add/subtract: Investment securities losses (gains), net

1,845

 

 

(75

)

 

1,296

 

Subtract/add: (Increase) decrease in fair value of private equity investments, net

(1,455

)

 

(858

)

 

37

 

Subtract: Tax effect of adjustments

(1,951

)

 

(5,705

)

 

(554

)

Adjusted net income available to common shareholders

$

158,892

 

 

$

160,155

 

 

$

109,824

 

 

 

 

 

 

 

Adjusted net income available to common shareholders annualized

$

637,314

 

 

$

649,518

 

 

$

440,502

 

Add: Amortization of intangibles

7,250

 

 

10,317

 

 

896

 

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

$

644,564

 

 

$

659,835

 

 

$

441,398

 

 

 

 

 

 

 

Net income available to common shareholders annualized

$

613,818

 

 

$

474,646

 

 

$

435,682

 

Add: Amortization of intangibles

7,250

 

 

10,317

 

 

896

 

Net income available to common shareholders excluding amortization of intangibles annualized

$

621,068

 

 

$

484,963

 

 

$

436,578

 

 

 

 

 

 

 

Total average shareholders' equity less preferred stock

$

4,286,369

 

 

$

4,321,561

 

 

$

2,831,368

 

Subtract: Goodwill

(487,601

)

 

(480,215

)

 

(57,315

)

Subtract: Other intangible assets, net

(69,853

)

 

(75,191

)

 

(10,555

)

Total average tangible shareholders' equity less preferred stock

$

3,728,915

 

 

$

3,766,155

 

 

$

2,763,498

 

Return on average common equity

14.32

%

 

10.98

%

 

15.39

%

Adjusted return on average common equity

14.87

 

 

15.03

 

 

15.56

 

Return on average tangible common equity

16.66

 

 

12.88

 

 

15.80

 

Adjusted return on average tangible common equity

17.29

 

 

17.52

 

 

15.97

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

June 30,

 

March 31,

 

June 30,

(dollars in thousands)

2019

 

2019

 

2018

Tangible Common Equity Ratio

 

 

 

 

 

Total assets

$

47,318,203

 

 

$

46,604,344

 

 

$

31,740,305

 

Subtract: Goodwill

(492,390

)

 

(480,215

)

 

(57,315

)

Subtract: Other intangible assets, net

(61,473

)

 

(74,683

)

 

(10,458

)

Tangible assets

$

46,764,340

 

 

$

46,049,446

 

 

$

31,672,532

 

 

 

 

 

 

 

Total shareholders’ equity

$

4,753,816

 

 

$

4,572,072

 

 

$

3,167,694

 

Subtract: Goodwill

(492,390

)

 

(480,215

)

 

(57,315

)

Subtract: Other intangible assets, net

(61,473

)

 

(74,683

)

 

(10,458

)

Subtract: Preferred Stock, no par value

(195,140

)

 

(195,140

)

 

(321,118

)

Tangible common equity

$

4,004,813

 

 

$

3,822,034

 

 

$

2,778,803

 

Total shareholders’ equity to total assets ratio

10.05

%

 

9.81

%

 

9.98

%

Tangible common equity ratio

8.56

 

 

8.30

 

 

8.77

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

June 30,

 

 

 

 

(dollars in thousands)

2019

 

 

 

 

CET1 capital ratio (fully phased-in)

 

 

 

 

 

CET1 capital

$

3,899,532

 

 

 

 

 

Total risk-weighted assets

$

40,564,781

 

 

 

 

 

Total risk-weighted assets (fully phased-in)

$

40,633,187

 

 

 

 

 

CET1 capital ratio

9.61

%

 

 

 

 

CET1 capital ratio (fully phased-in)

9.60

 

 

 

 

 

 

 

 

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT DATA

 

 

 

 

(Unaudited)

 

Six Months Ended

 

 

(Dollars in thousands, except per share data)

 

June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

1,020,970

 

 

$

642,968

 

 

58.8

%

 

Interest expense

 

226,532

 

 

84,107

 

 

169.3

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

794,438

 

 

558,861

 

 

42.2

 

 

Provision for loan losses

 

35,688

 

 

24,566

 

 

45.3

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for loan losses

 

758,750

 

 

534,295

 

 

42.0

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

    Service charges on deposit accounts

 

42,853

 

 

39,938

 

 

7.3

 

 

    Fiduciary and asset management fees

 

28,057

 

 

27,419

 

 

2.3

 

 

    Card fees

 

22,037

 

 

21,032

 

 

4.8

 

 

    Brokerage revenue

 

19,431

 

 

17,085

 

 

13.7

 

 

    Capital markets income

 

13,291

 

 

2,086

 

 

 nm

 

 

    Mortgage banking income

 

12,962

 

 

9,887

 

 

31.1

 

 

    Income from bank-owned life insurance

 

10,466

 

 

7,949

 

 

31.7

 

 

    Investment securities losses, net

 

(1,771

)

 

(1,296

)

 

 nm

 

 

    Increase/(decrease) in fair value of private equity investments, net

 

2,313

 

 

(3,093

)

 

 nm

 

 

    Other non-interest income

 

19,546

 

 

19,426

 

 

0.6

 

 

 

 

 

 

 

 

 

 

 

Total non-interest income

 

169,185

 

 

140,433

 

 

20.5

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

   Salaries and other personnel expense

 

282,436

 

 

225,583

 

 

25.2

 

 

   Net occupancy and equipment expense

 

78,245

 

 

64,134

 

 

22.0

 

 

   Third-party processing expense

 

36,875

 

 

29,012

 

 

27.1

 

 

   Professional fees

 

15,660

 

 

11,789

 

 

32.8

 

 

   FDIC insurance and other regulatory fees

 

14,629

 

 

13,335

 

 

9.7

 

 

   Advertising expense

 

11,045

 

 

10,312

 

 

7.1

 

 

   Merger-related expense

 

57,140

 

 

 

 

 nm

 

 

   Amortization of intangibles

 

5,802

 

 

583

 

 

 nm

 

 

   Other operating expenses

 

54,705

 

 

44,486

 

 

23.0

 

 

 

 

 

 

 

 

 

 

 

Total non-interest expense

 

556,537

 

 

399,234

 

 

39.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

371,398

 

 

275,494

 

 

34.8

 

 

Income tax expense

 

95,028

 

 

61,146

 

 

55.4

 

 

 

 

 

 

 

 

 

 

 

Net income

 

276,370

 

 

214,348

 

 

28.9

 

 

 

 

 

 

 

 

 

 

 

Less:  Preferred stock dividends

 

6,300

 

 

5,119

 

 

23.1

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

270,070

 

 

$

209,229

 

 

29.1

%

 

 

 

 

 

 

 

 

 

 

Net income per common share, basic

 

1.70

 

 

1.77

 

 

(3.9

)%

 

 

 

 

 

 

 

 

 

 

Net income per common share, diluted

 

1.68

 

 

1.75

 

 

(4.4

)

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

0.60

 

 

0.50

 

 

20.0

 

 

 

 

 

 

 

 

 

 

 

Return on average assets*

 

1.21

%

 

1.38

 

 

(17

)bps

 

Return on average common equity*

 

12.65

 

 

15.01

 

 

(236

)

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

159,148

 

 

118,531

 

 

34.3

%

 

Weighted average common shares outstanding, diluted

 

160,908

 

 

119,229

 

 

35.0

 

 

 

 

 

 

 

 

 

 

 

 nm - not meaningful

 

 

 

 

 

 

 

 

 bps - basis points

 

 

 

 

 

 

 

 

* - ratios are annualized

 

 

 

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT DATA

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except per share data)

2019

 

2018

 

Second
Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second
Quarter

 

First
Quarter

 

Fourth
Quarter

 

Third
Quarter

 

Second
Quarter

 

'19 vs '18

 

 

 

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

516,131

 

 

504,839

 

 

357,394

 

 

343,942

 

 

329,834

 

 

56.5

%

Interest expense

118,869

 

 

107,664

 

 

59,461

 

 

52,323

 

 

45,257

 

 

162.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

397,262

 

 

397,175

 

 

297,933

 

 

291,619

 

 

284,577

 

 

39.6

 

Provision for loan losses

12,119

 

 

23,569

 

 

12,148

 

 

14,982

 

 

11,790

 

 

2.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for loan losses

385,143

 

 

373,606

 

 

285,785

 

 

276,637

 

 

272,787

 

 

41.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

21,994

 

 

20,859

 

 

20,320

 

 

20,582

 

 

19,999

 

 

10.0

 

Fiduciary and asset management fees

14,478

 

 

13,578

 

 

13,805

 

 

13,462

 

 

13,983

 

 

3.5

 

Card fees

11,161

 

 

10,877

 

 

10,862

 

 

10,608

 

 

10,833

 

 

3.0

 

Brokerage revenue

10,052

 

 

9,379

 

 

9,241

 

 

9,041

 

 

8,709

 

 

15.4

 

Capital markets income

8,385

 

 

4,906

 

 

1,693

 

 

836

 

 

1,118

 

 

nm

 

Mortgage banking income

7,907

 

 

5,054

 

 

3,781

 

 

5,290

 

 

4,839

 

 

63.4

 

Income from bank-owned life insurance

5,176

 

 

5,290

 

 

3,682

 

 

3,771

 

 

3,733

 

 

38.7

 

Investment securities (losses)/gains, net

(1,845

)

 

75

 

 

 

 

 

 

(1,296

)

 

nm

 

Increase/(decrease) in fair value of private equity investments, net

1,455

 

 

858

 

 

(2,084

)

 

434

 

 

(37

)

 

nm

 

Other non-interest income

11,044

 

 

8,502

 

 

6,691

 

 

7,644

 

 

11,506

 

 

(4.0

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest income

89,807

 

 

79,378

 

 

67,991

 

 

71,668

 

 

73,387

 

 

22.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and other personnel expense

143,009

 

 

139,427

 

 

113,496

 

 

114,341

 

 

111,863

 

 

27.8

 

Net occupancy and equipment expense

39,851

 

 

38,394

 

 

34,260

 

 

32,088

 

 

32,654

 

 

22.0

 

Third-party processing expense

19,118

 

 

17,758

 

 

14,803

 

 

14,810

 

 

15,067

 

 

26.9

 

Professional Fees

9,312

 

 

6,348

 

 

8,650

 

 

6,298

 

 

6,284

 

 

48.2

 

FDIC insurance and other regulatory fees

7,867

 

 

6,761

 

 

4,728

 

 

6,430

 

 

6,543

 

 

20.2

 

Advertising expense

5,923

 

 

5,123

 

 

6,834

 

 

3,735

 

 

5,220

 

 

13.5

 

Earnout liability adjustments

 

 

 

 

 

 

11,652

 

 

 

 

nm

 

Merger-related expense

7,401

 

 

49,738

 

 

3,381

 

 

6,684

 

 

 

 

nm

 

   Amortization of intangibles

2,410

 

 

3,392

 

 

292

 

 

292

 

 

292

 

 

nm

 

Other operating expenses

29,235

 

 

25,469

 

 

23,478

 

 

23,967

 

 

26,134

 

 

11.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest expense

264,126

 

 

292,410

 

 

209,922

 

 

220,297

 

 

204,057

 

 

29.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

210,824

 

 

160,574

 

 

143,854

 

 

128,008

 

 

142,117

 

 

48.3

 

Income tax expense

54,640

 

 

40,388

 

 

38,784

 

 

18,949

 

 

30,936

 

 

76.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

156,184

 

 

120,186

 

 

105,070

 

 

109,059

 

 

111,181

 

 

40.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Preferred stock dividends and redemption charge

3,150

 

 

3,150

 

 

3,151

 

 

9,729

 

 

2,559

 

 

23.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

$

153,034

 

 

117,036

 

 

101,919

 

 

99,330

 

 

108,622

 

 

40.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, basic

$

0.97

 

 

0.73

 

 

0.88

 

 

0.85

 

 

0.92

 

 

6.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, diluted

0.96

 

 

0.72

 

 

0.87

 

 

0.84

 

 

0.91

 

 

5.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

0.30

 

 

0.30

 

 

0.25

 

 

0.25

 

 

0.25

 

 

20.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets *

1.35

%

 

1.06

 

 

1.29

 

 

1.36

 

 

1.42

 

 

(7

)bps

Return on average common equity *

14.32

 

 

10.98

 

 

14.25

 

 

13.95

 

 

15.39

 

 

(107

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

157,389

 

 

160,927

 

 

116,303

 

 

117,241

 

 

118,397

 

 

32.9

%

Weighted average common shares outstanding, diluted

159,077

 

 

162,760

 

 

116,986

 

 

118,095

 

 

119,139

 

 

33.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 nm - not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 bps - basis points

 

 

 

 

 

 

 

 

 

 

 

 

* - ratios are annualized

 

 

 

 

 

 

 

 

 

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET DATA

 

June 30, 2019

 

December 31, 2018

 

June 30, 2018

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Cash and due from banks

 

$

549,616

 

 

$

468,426

 

 

$

404,080

 

 

Interest-bearing funds with Federal Reserve Bank

 

531,488

 

 

641,476

 

 

613,082

 

 

Interest earning deposits with banks

 

20,271

 

 

19,841

 

 

33,754

 

 

Federal funds sold and securities purchased under resale agreements

 

49,946

 

 

13,821

 

 

40,872

 

 

Cash and cash equivalents

 

1,151,321

 

 

1,143,564

 

 

1,091,788

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale, at fair value

 

7,007,012

 

 

3,991,632

 

 

3,929,962

 

 

Mortgage loans held for sale, at fair value

 

81,855

 

 

37,129

 

 

53,673

 

 

 

 

 

 

 

 

 

 

Loans

 

36,138,561

 

 

25,946,573

 

 

25,134,056

 

 

Allowance for loan losses

 

(257,376

)

 

(250,555

)

 

(251,725

 

 

Loans, net

 

35,881,185

 

 

25,696,018

 

 

24,882,331

 

 

 

 

 

 

 

 

 

 

Cash surrender value of bank-owned life insurance

 

766,287

 

 

554,134

 

 

547,261

 

 

Premises and equipment, net

 

490,644

 

 

434,307

 

 

428,633

 

 

Goodwill

 

492,390

 

 

57,315

 

 

57,315

 

 

Other intangible assets

 

61,473

 

 

9,875

 

 

10,458

 

 

Other assets

 

1,386,036

 

 

745,218

 

 

738,884

 

 

Total assets

 

$

47,318,203

 

 

$

32,669,192

 

 

$

31,740,305

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

$

9,205,066

 

 

$

7,650,967

 

 

$

7,630,491

 

 

Interest-bearing deposits

 

28,761,656

 

 

19,069,355

 

 

18,812,197

 

 

Total deposits

 

37,966,722

 

 

26,720,322

 

 

26,442,688

 

 

 

 

 

 

 

 

 

 

Federal funds purchased and securities sold under repurchase agreements

 

273,481

 

 

237,692

 

 

207,580

 

 

Other short-term borrowings

 

1,330,000

 

 

650,000

 

 

 

 

Long-term debt

 

2,306,072

 

 

1,657,157

 

 

1,656,647

 

 

Other liabilities

 

688,112

 

 

270,419

 

 

265,696

 

 

Total liabilities

 

42,564,387

 

 

29,535,590

 

 

28,572,611

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

Series C Preferred Stock - no par value; 5,200,000 outstanding at June 30, 2018

 

 

 

 

 

125,980

 

 

 

Series D Preferred Stock - no par value.  Authorized 100,000,000 shares; 8,000,000 shares issued and outstanding at June 30, 2019, December 31, 2018, and June 30, 2018

 

195,140

 

 

195,140

 

 

195,138

 

 

 

Common stock - $1.00 par value.  Authorized 342,857,143 shares; 166,079,543 issued at June 30, 2019, 143,300,449 issued at December 31, 2018, and 143,077,973 issued at June 30, 2018; 156,872,026 outstanding at June 30, 2019, 115,865,510 outstanding at December 31, 2018, and 117,841,369 outstanding at June 30, 2018

 

166,080

 

 

143,300

 

 

143,078

 

 

 

Additional paid-in capital

 

3,801,748

 

 

3,060,561

 

 

3,045,014

 

 

 

Treasury stock, at cost – 9,207,517 shares at June 30, 2019, 27,434,939 shares at December 31, 2018, and 25,236,604 shares at June 30, 2018

 

(344,901

)

 

(1,014,746

)

 

(916,484

 

 

 

Accumulated other comprehensive income (loss), net

 

49,289

 

 

(94,420

)

 

(125,720

 

 

 

Retained earnings

 

886,460

 

 

843,767

 

 

700,688

 

 

 

Total shareholders’ equity

 

4,753,816

 

 

3,133,602

 

 

3,167,694

 

 

 

Total liabilities and shareholders' equity

 

$

47,318,203

 

 

$

32,669,192

 

 

$

31,740,305

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES AND YIELDS/RATES (1)

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

 

Second

First

 

Fourth

Third

Second

 

 

 

Quarter

Quarter

 

Quarter

Quarter

Quarter

 

Interest Earning Assets

 

 

 

 

 

 

 

 

Taxable investment securities (2)

 

$

6,953,278

 

6,515,561

 

 

4,073,685

 

4,061,239

 

4,077,564

 

 

Yield

 

3.04

%

3.05

 

 

2.45

 

2.38

 

2.34

 

 

Tax-exempt investment securities(2)(4)

 

$

2,108

 

20,638

 

 

 

89

 

115

 

 

Yield (taxable equivalent)

 

4.91

%

4.45

 

 

 

5.91

 

6.87

 

 

Trading account assets(5)

 

$

4,853

 

2,049

 

 

7,493

 

16,646

 

23,772

 

 

Yield

 

1.83

%

1.30

 

 

1.90

 

2.52

 

2.79

 

 

Commercial loans(3)(4)

 

$

26,353,973

 

26,140,672

 

 

19,150,252

 

19,025,830

 

18,857,271

 

 

Yield

 

5.13

%

5.16

 

 

5.13

 

4.98

 

4.85

 

 

Consumer loans(3)

 

$

9,423,427

 

9,180,679

 

 

6,476,026

 

6,298,643

 

6,092,899

 

 

Yield

 

5.17

%

5.10

 

 

4.85

 

4.80

 

4.76

 

 

Allowance for loan losses

 

$

(259,284

)

(252,815

)

 

(251,098

)

(251,684

)

(257,966

)

 

Loans, net(3)

 

$

35,518,116

 

35,068,536

 

 

25,375,180

 

25,072,789

 

24,692,204

 

 

Yield

 

5.17

%

5.17

 

 

5.11

 

4.99

 

4.88

 

 

Mortgage loans held for sale

 

$

70,497

 

34,913

 

 

36,477

 

49,030

 

50,366

 

 

Yield

 

4.27

%

4.48

 

 

4.79

 

4.71

 

4.42

 

 

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

 

$

511,488

 

679,477

 

 

641,832

 

544,704

 

724,537

 

 

Yield

 

2.37

%

2.45

 

 

2.20

 

1.90

 

1.77

 

 

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

 

$

234,949

 

211,408

 

 

162,369

 

163,568

 

165,845

 

 

Yield

 

3.29

%

4.82

 

 

4.31

 

4.41

 

4.63

 

 

Total interest earning assets

 

$

43,295,289

 

42,532,582

 

 

30,297,036

 

29,908,065

 

29,734,403

 

 

Yield

 

4.79

%

4.80

 

 

4.69

 

4.58

 

4.47

 

 

Interest-Bearing Liabilities

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

6,335,953

 

6,393,304

 

 

4,692,804

 

4,701,204

 

5,001,826

 

 

Rate

 

0.71

%

0.68

 

 

0.41

 

0.38

 

0.35

 

 

Money Market accounts

 

$

10,024,836

 

10,244,556

 

 

8,050,732

 

7,936,621

 

7,791,107

 

 

Rate

 

1.23

%

1.18

 

 

0.89

 

0.72

 

0.55

 

 

Savings deposits

 

$

904,183

 

901,059

 

 

815,588

 

824,935

 

829,800

 

 

Rate

 

0.05

%

0.06

 

 

0.04

 

0.03

 

0.03

 

 

Time deposits under $100,000

 

$

2,245,878

 

2,238,568

 

 

1,242,811

 

1,205,987

 

1,161,890

 

 

Rate

 

1.39

%

1.24

 

 

1.16

 

0.99

 

0.82

 

 

Time deposits over $100,000

 

$

6,331,665

 

6,211,067

 

 

2,478,649

 

2,273,582

 

2,021,084

 

 

Rate

 

1.70

%

1.60

 

 

1.67

 

1.46

 

1.22

 

 

Non-maturing brokered deposits

 

$

766,718

 

937,629

 

 

349,480

 

358,277

 

262,976

 

 

Rate

 

2.46

%

2.60

 

 

2.46

 

2.10

 

1.94

 

 

Brokered time deposits

 

$

1,985,589

 

1,845,819

 

 

1,275,276

 

1,414,700

 

1,659,941

 

 

Rate

 

2.28

%

2.13

 

 

2.03

 

1.94

 

1.85

 

 

Total interest-bearing deposits

 

$

28,594,822

 

28,772,002

 

 

18,905,340

 

18,715,306

 

18,728,624

 

 

Rate

 

1.30

%

1.24

 

 

0.96

 

0.83

 

0.70

 

 

Federal funds purchased and securities sold under repurchase agreements

 

$

300,168

 

233,076

 

 

194,370

 

230,504

 

207,655

 

 

Rate

 

0.20

%

0.22

 

 

0.18

 

0.25

 

0.35

 

 

Other short-term borrowings

 

$

1,090,581

 

517,456

 

 

112,228

 

146,794

 

3,024

 

 

Rate

 

2.59

%

2.58

 

 

2.51

 

2.12

 

2.84

 

 

Long-term debt

 

$

2,114,819

 

1,983,910

 

 

1,657,022

 

1,656,743

 

1,852,094

 

 

Rate

 

3.53

%

3.33

 

 

3.06

 

2.87

 

2.66

 

 

Total interest-bearing liabilities

 

$

32,100,390

 

31,506,444

 

 

20,868,960

 

20,749,347

 

20,791,397

 

 

Rate

 

1.48

%

1.38

 

 

1.12

 

0.99

 

0.87

 

 

Non-interest-bearing demand deposits

 

$

9,304,839

 

9,054,949

 

 

8,014,761

 

7,672,006

 

7,539,451

 

 

Cost of funds

 

1.15

%

1.07

 

 

0.81

 

0.73

 

0.64

 

 

Net interest margin

 

3.69

%

3.78

 

 

3.92

 

3.89

 

3.86

 

 

Taxable equivalent adjustment

 

$

811

 

630

 

 

181

 

136

 

120

 

 

 

 

 

 

 

 

 

 

 

(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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans

 

Total Originated
Loans

 

Total Acquired
Loans (1)

 

Total Loans (1)

 

Linked
Quarter

 

Total Loans

 

Year/Year

Loan Type

 

June 30, 2019

 

June 30, 2019

 

June 30, 2019

 

March 31, 2019

 

% Change(2)

 

June 30, 2018

 

% Change

Commercial, Financial, and Agricultural

 

$

9,717,746

 

 

7,800,635

 

 

1,917,111

 

 

9,566,935

 

 

6.3

%

 

$

7,271,080

 

 

33.6

%

Owner-Occupied

 

6,529,797

 

 

5,366,404

 

 

1,163,393

 

 

6,560,681

 

 

(1.9

)

 

5,004,392

 

 

30.5

 

Total Commercial & Industrial

 

16,247,543

 

 

13,167,039

 

 

3,080,504

 

 

16,127,616

 

 

3.0

 

 

12,275,472

 

 

32.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi-Family

 

2,113,938

 

 

1,342,157

 

 

771,781

 

 

2,077,666

 

 

7.0

 

 

1,358,211

 

 

55.6

 

Hotels

 

1,244,512

 

 

761,387

 

 

483,125

 

 

1,179,395

 

 

22.1

 

 

755,125

 

 

64.8

 

Office Buildings

 

2,291,617

 

 

1,495,989

 

 

795,628

 

 

2,300,671

 

 

(1.6

)

 

1,429,166

 

 

60.3

 

Shopping Centers

 

1,677,555

 

 

919,244

 

 

758,311

 

 

1,657,789

 

 

4.8

 

 

811,186

 

 

106.8

 

Warehouses

 

696,692

 

 

581,980

 

 

114,712

 

 

725,862

 

 

(16.1

)

 

602,707

 

 

15.6

 

Other Investment Property

 

980,786

 

 

826,949

 

 

153,837

 

 

979,579

 

 

0.5

 

 

553,201

 

 

77.3

 

Total Investment Properties

 

9,005,100

 

 

5,927,706

 

 

3,077,394

 

 

8,920,962

 

 

3.8

 

 

5,509,596

 

 

63.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 Family Construction

 

219,032

 

 

174,242

 

 

44,790

 

 

215,881

 

 

5.9

 

 

177,140

 

 

23.6

 

1-4 Family Investment Mortgage

 

528,358

 

 

469,206

 

 

59,152

 

 

549,120

 

 

(15.2

)

 

543,570

 

 

(2.8

)

Total 1-4 Family Properties

 

747,390

 

 

643,448

 

 

103,942

 

 

765,001

 

 

(9.2

)

 

720,710

 

 

3.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Development

 

138,840

 

 

65,111

 

 

73,729

 

 

147,516

 

 

(23.6

)

 

61,375

 

 

126.2

 

Residential Development

 

218,850

 

 

126,827

 

 

92,023

 

 

215,814

 

 

5.6

 

 

100,246

 

 

118.3

 

Land Acquisition

 

238,267

 

 

172,750

 

 

65,517

 

 

219,146

 

 

35.0

 

 

252,244

 

 

(5.5

)

Land and Development

 

595,957

 

 

364,688

 

 

231,269

 

 

582,476

 

 

9.3

 

 

413,865

 

 

44.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Commercial Real Estate

 

10,348,447

 

 

6,935,842

 

 

3,412,605

 

 

10,268,439

 

 

3.1

 

 

6,644,171

 

 

55.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Mortgages

 

5,407,762

 

 

3,194,027

 

 

2,213,735

 

 

5,365,635

 

 

3.1

 

 

2,750,935

 

 

96.6

 

Home Equity Lines

 

1,650,745

 

 

1,587,854

 

 

62,891

 

 

1,606,227

 

 

11.1

 

 

1,453,855

 

 

13.5

 

Credit Cards

 

258,283

 

 

258,283

 

 

 

 

252,762

 

 

8.8

 

 

238,424

 

 

8.3

 

Other Consumer Loans

 

2,249,337

 

 

2,237,406

 

 

11,931

 

 

2,037,477

 

 

41.7

 

 

1,793,916

 

 

25.4

 

Total Consumer

 

9,566,127

 

 

7,277,570

 

 

2,288,557

 

 

9,262,101

 

 

13.2

 

 

6,237,130

 

 

53.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unearned Income

 

(23,556

)

 

(23,556

)

 

 

 

(23,655

)

 

(1.7

)

 

(22,717

)

 

3.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

36,138,561

 

 

27,356,895

 

 

8,781,666

 

 

35,634,501

 

 

5.7

%

 

$

25,134,056

 

 

43.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)On 1/1/19 $9.29 B of loans (at fair value) were acquired from FCB. The amounts presented in these columns are net of paydowns and payoffs since acquisition date.

(2) Percentage change is annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING LOANS COMPOSITION(1)

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Total

Non-performing
Loans

 

Total Originated
Non-performing
Loans

 

Total Acquired
Non-performing
Loans(2)

 

Total
Non-performing
Loans(3)

 

Linked
Quarter

 

Total
Non-performing
Loans

 

Year/Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Type

 

June 30, 2019

 

June 30, 2019

 

June 30, 2019

 

March 31, 2019

 

% Change

 

June 30, 2018

 

% Change

Commercial, Financial, and Agricultural

 

$

72,934

 

 

68,573

 

 

4,361

 

 

85,917

 

 

(15.1

)%

 

$

81,231

 

 

(10.2

)%

Owner-Occupied

 

13,465

 

 

11,557

 

 

1,908

 

 

13,813

 

 

(2.5

)

 

6,076

 

 

121.6

 

Total Commercial & Industrial

 

86,399

 

 

80,130

 

 

6,269

 

 

99,730

 

 

(13.4

)

 

87,307

 

 

(1.0

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi-Family

 

 

 

 

 

 

 

1,503

 

 

nm

 

176

 

 

nm

Hotels

 

 

 

 

 

 

 

7,346

 

 

nm

 

 

 

nm

Office Buildings

 

300

 

 

186

 

 

114

 

 

221

 

 

35.7

 

 

670

 

 

(55.2

)

Shopping Centers

 

671

 

 

613

 

 

58

 

 

676

 

 

(0.7

)

 

412

 

 

62.9

 

Warehouses

 

 

 

 

 

 

 

 

 

nm

 

21

 

 

nm

Other Investment Property

 

7

 

 

 

 

7

 

 

 

 

nm

 

459

 

 

nm

Total Investment Properties

 

978

 

 

799

 

 

179

 

 

9,746

 

 

(90.0

)

 

1,738

 

 

(43.7

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 Family Construction

 

208

 

 

208

 

 

 

 

445

 

 

(53.3

)

 

 

 

nm

1-4 Family Investment Mortgage

 

1,637

 

 

1,410

 

 

227

 

 

1,522

 

 

7.6

 

 

3,247

 

 

(49.6

)

Total 1-4 Family Properties

 

1,845

 

 

1,618

 

 

227

 

 

1,967

 

 

(6.2

)

 

3,247

 

 

(43.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Development

 

 

 

 

 

 

 

46

 

 

nm

 

42

 

 

nm

Residential Development

 

1,253

 

 

1,253

 

 

 

 

1,569

 

 

(20.1

)

 

3,184

 

 

(60.6

)

Land Acquisition

 

1,482

 

 

1,482

 

 

 

 

1,035

 

 

43.2

 

 

1,398

 

 

6.0

 

Land and Development

 

2,735

 

 

2,735

 

 

 

 

2,650

 

 

3.2

 

 

4,624

 

 

(40.9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Commercial Real Estate

 

5,558

 

 

5,152

 

 

406

 

 

14,363

 

 

(61.3

)

 

9,609

 

 

(42.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Mortgages

 

13,628

 

 

13,628

 

 

 

 

11,556

 

 

17.9

 

 

4,822

 

 

182.6

 

Home Equity Lines

 

13,830

 

 

13,494

 

 

336

 

 

14,078

 

 

(1.8

)

 

14,265

 

 

(3.0

)

Other Consumer Loans

 

4,667

 

 

4,667

 

 

 

 

4,249

 

 

9.8

 

 

1,325

 

 

252.2

 

Total Consumer

 

32,125

 

 

31,789

 

 

336

 

 

29,883

 

 

7.5

 

 

20,412

 

 

57.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

124,082

 

 

117,071

 

 

7,011

 

 

143,976

 

 

(13.8

)%

 

$

117,328

 

 

5.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) For purposes of this table, 2019 non-performing loans exclude acquired loans accounted for under ASC 310-30 that are currently accruing income.

(2) Represents loans acquired from FCB and designated as non-accrual, net of payments and dispositions since acquisition date.

(3) March 31, 2019 total non-performing loans included $23.5 million of acquired non-performing loans, net of payments since acquisition date.

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY DATA

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

2019

 

2018

 

Second
Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second

 

First

 

Fourth

 

Third

 

Second

 

'19 vs '18

 

 

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Loans (1)

 

124,083

 

 

143,976

 

 

106,733

 

 

108,425

 

 

117,328

 

 

5.8

%

 

Impaired Loans Held for Sale (2)

 

631

 

 

12

 

 

1,506

 

 

12

 

 

2,733

 

 

(76.9

)

 

Other Real Estate

 

14,848

 

 

11,329

 

 

6,220

 

 

8,542

 

 

6,288

 

 

136.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Assets (1)

 

139,562

 

 

155,317

 

 

114,459

 

 

116,979

 

 

126,349

 

 

10.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

257,376

 

 

257,036

 

 

250,555

 

 

251,450

 

 

251,725

 

 

2.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Charge-Offs  -  Quarter

 

11,778

 

 

17,088

 

 

13,044

 

 

15,257

 

 

17,829

 

 

 

 

Net Charge-Offs  -  YTD

 

28,867

 

 

17,088

 

 

50,410

 

 

37,366

 

 

22,109

 

 

 

 

Net Charge-Offs / Average Loans - Quarter (3)

 

0.13

%

 

0.19

 

 

0.20

 

 

0.24

 

 

0.29

 

 

 

 

Net Charge-Offs / Average Loans - YTD (3)

 

0.16

 

 

0.19

 

 

0.20

 

 

0.20

 

 

0.18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Loans / Loans (1)

 

0.34

 

 

0.40

 

 

0.41

 

 

0.42

 

 

0.47

 

 

 

 

Non-performing Assets / Loans, Impaired Loans Held for Sale, & ORE (1)

 

0.39

 

 

0.44

 

 

0.44

 

 

0.46

 

 

0.50

 

 

 

 

Allowance / Loans

 

0.71

 

 

0.72

 

 

0.97

 

 

0.98

 

 

1.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance / Non-performing Loans (1)

 

207.42

 

 

178.53

 

 

234.75

 

 

231.91

 

 

214.55

 

 

 

 

Allowance / Non-performing Loans excluding impaired and acquired loans with no reserve

 (1)

 

282.51

 

 

291.62

 

 

297.68

 

 

288.21

 

 

262.99

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past Due Loans over 90 days and Still Accruing (1)

 

$

5,851

 

 

4,486

 

 

3,798

 

 

4,856

 

 

3,222

 

 

81.6

 

 

As a Percentage of Loans Outstanding

 

0.02

%

 

0.01

 

 

0.01

 

 

0.02

 

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Past Due Loans and Still Accruing (1)

 

$

80,792

 

 

88,135

 

 

56,927

 

 

78,323

 

 

55,614

 

 

45.3

 

 

As a Percentage of Loans Outstanding

 

0.22

%

 

0.25

 

 

0.22

 

 

0.31

 

 

0.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing Troubled Debt Restructurings (TDRs)

 

$

126,369

 

 

112,205

 

 

115,588

 

 

114,740

 

 

125,310

 

 

0.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) For purposes of this table, 2019 non-performing loans and past due loans over 90 days exclude acquired loans accounted for under ASC 310-30 that are currently accruing income.

 

(2) Represent impaired loans that have been specifically identified to be sold. Impaired loans held for sale are carried at the lower of cost or fair value, less costs to sell, based primarily on estimated sales proceeds net of selling costs.

 

(3) Ratio is annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED CAPITAL INFORMATION (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2019

 

December 31, 2018

 

June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital

 

$

4,094,672

 

 

3,090,416

 

 

3,156,805

 

 

 

 

 

 

 

 

Total Risk-Based Capital

 

4,913,043

 

 

3,601,376

 

 

3,668,904

 

 

 

 

 

 

 

 

Common Equity Tier 1 Capital Ratio

 

9.61

%

 

9.95

 

 

10.12

 

 

 

 

 

 

 

 

Common Equity Tier 1 Ratio (fully phased-in) (5)

 

9.60

 

 

9.92

 

 

10.06

 

 

 

 

 

 

 

 

Tier 1 Capital Ratio

 

10.09

 

 

10.61

 

 

11.25

 

 

 

 

 

 

 

 

Total Risk-Based Capital Ratio

 

12.11

 

 

12.37

 

 

13.08

 

 

 

 

 

 

 

 

Tier 1 Leverage Ratio

 

8.92

 

 

9.60

 

 

10.03

 

 

 

 

 

 

 

 

Common Equity as a Percentage of Total Assets (2)

 

9.63

 

 

8.99

 

 

8.97

 

 

 

 

 

 

 

 

Tangible Common Equity Ratio (3) (5)

 

8.56

 

 

8.81

 

 

8.77

 

 

 

 

 

 

 

 

Book Value Per Common Share (4)

 

$

29.06

 

 

25.36

 

 

24.16

 

 

 

 

 

 

 

 

Tangible Book Value Per Common Share (3)

 

25.53

 

 

24.78

 

 

23.58

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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
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(706) 644-0528

Investor Contact
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Investor Relations
(706) 641-6462

Source: Synovus Financial Corp.