SNV
$20.05
Synovus Financial
$.32
1.62%
Earnings Details
2nd Quarter June 2020
Tuesday, July 21, 2020 6:30:00 AM
Tweet Share Watch
Summary

Synovus Financial (SNV) Recent Earnings

Synovus Financial (SNV) reported 2nd Quarter June 2020 earnings of $0.23 per share on revenue of $625.1 million. The consensus earnings estimate was $0.15 per share on revenue of $450.9 million. Revenue grew 3.2% 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
$0.23
Earnings Whisper
-
Consensus Estimate
$0.15
Reported Revenue
$625.1 Mil
Revenue Estimate
$450.9 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Synovus Announces Earnings for the Second Quarter 2020

Diluted Earnings per Share of $0.57 vs. $0.96 in 2Q19

Adjusted Diluted Earnings per Share of $0.23 vs. $1.00 in 2Q19

COLUMBUS, Ga.--(BUSINESS WIRE)--Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended June 30, 2020.

Second Quarter 2020 Highlights

  • Diluted EPS of $0.57; adjusted diluted EPS of $0.23.
  • Period-end loan growth of $1.66 billion or 4.3% sequentially; funded approximately $2.9 billion in Paycheck Protection Program (PPP) loans, supporting more than 19,000 customers.
  • Core transaction deposits (non-interest bearing, NOW/savings, and money market deposits excluding public and brokered funds) increased $4.63 billion or 18.7% sequentially.
  • Interest-bearing deposit (NOW/savings, money market, and time deposit) costs down 45 bps from the first quarter.
  • Net interest income growth of $3.3 million sequentially; net interest margin of 3.13% vs. 3.37% in 1Q20.
  • Non-interest revenue increased $69.6 million sequentially and $83.7 million compared to prior year, largely due to investment gains of $78.1 million.
  • Provision for credit losses of $141.9 million reflected significant economic stress due to the COVID-19 healthcare crisis; allowance for credit losses coverage ratio (to loans) of 1.63%, or 1.74% excluding PPP loans.
  • Credit quality metrics remain stable, with the non-performing loan ratio and net charge-off ratio of 0.37% and 0.24%, respectively.
  • CET1 ratio improved 20 bps to 8.90% and Total Risk Based Capital ratio increased 41 bps to 12.70%.

Second Quarter Summary

 

 

Reported

 

Adjusted

(dollars in thousands)

 

2Q20

 

1Q20

 

2Q19

 

2Q20

 

1Q20

 

2Q19

Net income available to common shareholders

 

$

84,901

 

 

$

30,230

 

 

$

153,034

 

 

$34,015

 

 

$

30,708

 

 

$

158,892

 

Diluted earnings per share

 

0.57

 

 

0.20

 

 

0.96

 

 

0.23

 

 

0.21

 

 

1.00

 

Total loans

 

39,914,297

 

 

38,258,024

 

 

36,138,561

 

 

N/A

 

 

N/A

 

 

N/A

 

Total deposits

 

44,194,580

 

 

39,826,585

 

 

37,966,722

 

 

N/A

 

 

N/A

 

 

N/A

 

Total revenues

 

550,911

 

 

477,903

 

 

487,880

 

 

472,795

 

 

473,424

 

 

488,270

 

Return on avg assets

 

0.71

%

 

0.32

%

 

1.34

%

 

0.32

%

 

0.32

%

 

1.39

%

Return on avg common equity

 

7.48

 

 

2.75

 

 

13.90

 

 

3.00

 

 

2.79

 

 

14.43

 

Return on avg tangible common equity

 

8.69

 

 

3.34

 

 

16.09

 

 

3.60

 

 

3.39

 

 

16.70

 

Net interest margin

 

3.13

 

 

3.37

 

 

3.69

 

 

3.11

 

 

3.35

 

 

3.48

 

Efficiency ratio

 

51.58

 

 

57.81

 

 

54.14

 

 

57.91

 

 

56.72

 

 

52.08

 

NCO ratio

 

0.24

 

 

0.21

 

 

0.13

 

 

N/A

 

 

N/A

 

 

N/A

 

NPA ratio

 

0.44

 

 

0.50

 

 

0.39

 

 

N/A

 

 

N/A

 

 

N/A

 

 

“Our performance in the second quarter demonstrates the key role we play as a financial resource and community partner in the markets we serve,” said Kessel D. Stelling, Synovus Chairman and CEO. “We delivered approximately $3 billion in Paycheck Protection Program loans to more than 19,000 customers and originated a record $1.4 billion in consumer mortgages. Through strong operating performance and effective balance sheet management, we further improved both our capital and liquidity levels during the quarter. As we navigate an uncertain economic environment, we continue to invest in the future while accelerating many Synovus Forward initiatives focused on efficiencies, digital enhancements, and customer experience. And as our communities manage through the challenges of the pandemic and longstanding racial inequalities, we are fully committed to do our part to bring strength and positive change.”

Balance Sheet

Loans*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

 

2Q20

 

 

1Q20

 

 

Linked
Quarter
Change

 

Linked
Quarter %
Change

 

2Q19

 

 

Year/Year
Change

 

Year/Year
% Change

Commercial & industrial

 

$

19,938.3

 

 

 

$

17,661.4

 

 

 

$

2,276.8

 

 

 

12.9

%

 

$

16,228.7

 

 

 

$

3,709.5

 

 

 

22.9

%

Commercial real estate

 

10,827.5

 

 

 

10,671.2

 

 

 

156.3

 

 

 

1.5

 

 

10,367.2

 

 

 

460.3

 

 

 

4.4

 

Consumer

 

9,246.7

 

 

 

9,950.9

 

 

 

(704.2

)

 

 

(7.1

)

 

9,566.1

 

 

 

(319.5

)

 

 

(3.3

)

Unearned income

 

(98.2

)

 

 

(25.5

)

 

 

(72.7

)

 

 

nm

 

 

(23.6

)

 

 

(74.6

)

 

 

316.8

 

Total loans

 

$

39,914.3

 

 

 

$

38,258.0

 

 

 

$

1,656.3

 

 

 

4.3

%

 

$

36,138.6

 

 

 

$

3,775.7

 

 

 

10.4

%

*Amounts may not total due to rounding
nm = not meaningful

 
  • Total loans ended the quarter at $39.91 billion, up $1.66 billion or 4.3% sequentially.
  • Commercial and industrial (C&I) loans sequential growth of $2.28 billion led by net growth of $2.71 billion in PPP loans, offsetting C&I line utilization of 41% compared to 50% in the prior quarter.
  • Consumer loans decreased by $704.2 million sequentially, primarily as a result of transitioning lending partnership assets to held-for-sale, partially offset by record portfolio mortgage production of $800.5 million, up $510.5 million sequentially.
 

Deposits*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

 

2Q20

 

1Q20

 

Linked
Quarter
Change

 

Linked
Quarter %
Change

 

2Q19

 

Year/Year
Change

 

Year/Year
% Change

Non-interest-bearing DDA

 

$

11,830.7

 

 

$

8,968.8

 

 

$

2,861.9

 

 

 

31.9

%

 

$

8,577.6

 

 

$

3,253.1

 

 

 

37.9

%

Interest-bearing DDA

 

5,057.2

 

 

4,617.4

 

 

439.9

 

 

 

9.5

 

 

4,847.2

 

 

210.0

 

 

 

4.3

 

Money market

 

11,457.2

 

 

10,255.0

 

 

1,202.2

 

 

 

11.7

 

 

8,952.9

 

 

2,504.3

 

 

 

28.0

 

Savings

 

1,080.1

 

 

949.5

 

 

130.6

 

 

 

13.8

 

 

891.2

 

 

188.9

 

 

 

21.2

 

Public funds

 

5,347.4

 

 

5,261.4

 

 

86.0

 

 

 

1.6

 

 

4,351.3

 

 

996.0

 

 

 

22.9

 

Time deposits

 

5,131.7

 

 

5,786.6

 

 

(655.0

)

 

 

(11.3

)

 

7,343.0

 

 

(2,211.3

)

 

 

(30.1

)

Brokered deposits

 

4,290.3

 

 

3,987.9

 

 

302.4

 

 

 

7.6

 

 

3,003.5

 

 

1,286.8

 

 

 

42.8

 

Total deposits

 

$

44,194.6

 

 

$

39,826.6

 

 

$

4,368.0

 

 

 

11.0

%

 

$

37,966.7

 

 

$

6,227.9

 

 

 

16.4

%

*Amounts may not total due to rounding

 
  • Total deposits ended the quarter at $44.19 billion, up $4.37 billion or 11.0% sequentially.
  • Core transaction deposits increased $4.63 billion or 18.7% sequentially, led by non-interest-bearing DDA growth of $2.86 billion.
  • Broad-based growth in NOW, MMA, and savings deposits more than offset a $655.0 million decline in time deposits.
  • 2Q20 interest-bearing deposit costs declined 45 bps from 1Q20.

Income Statement Summary**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data)

 

2Q20

 

1Q20

 

Linked
Quarter
Change

 

Linked
Quarter %
Change

 

2Q19

 

Year/Year
Change

 

Year/Year
% Change

Net interest income

 

$

376,566

 

 

$

373,260

 

 

$

3,306

 

 

 

0.9

%

 

$

397,262

 

 

$

(20,696

)

 

 

(5.2

)%

Non-interest revenue

 

173,484

 

 

103,857

 

 

69,627

 

 

 

67.0

 

 

89,807

 

 

83,677

 

 

 

93.2

 

Non-interest expense

 

284,141

 

 

276,279

 

 

7,862

 

 

 

2.8

 

 

264,126

 

 

20,015

 

 

 

7.6

 

Provision for credit losses

 

141,851

 

 

158,722

 

 

(16,871

)

 

 

(10.6

)

 

12,119

 

 

129,732

 

 

 

nm

 

Income before taxes

 

$

124,058

 

 

$

42,116

 

 

$

81,942

 

 

 

194.6

%

 

$

210,824

 

 

$

(86,766

)

 

 

(41.2

)%

Income tax expense

 

30,866

 

 

3,595

 

 

27,271

 

 

 

nm

 

 

54,640

 

 

(23,774

)

 

 

(43.5

)

Preferred stock dividends

 

8,291

 

 

8,291

 

 

 

 

 

 

 

3,150

 

 

5,141

 

 

 

163.2

 

Net income available to common shareholders

 

$

84,901

 

 

$

30,230

 

 

$

54,671

 

 

 

180.9

%

 

$

153,034

 

 

$

(68,133

)

 

 

(44.5

)%

Weighted average common shares outstanding, diluted

 

147,733

 

 

148,401

 

 

(668

)

 

 

(0.5

)%

 

159,077

 

 

(11,344

)

 

 

(7.1

)%

Diluted earnings per share

 

$

0.57

 

 

$

0.20

 

 

$

0.37

 

 

 

182.1

 

 

$

0.96

 

 

$

(0.39

)

 

 

(40.3

)

Adjusted diluted earnings per share

 

0.23

 

 

0.21

 

 

0.02

 

 

 

11.3

 

 

1.00

 

 

(0.77

)

 

 

(77.0

)

** Amounts may not total due to rounding
nm - not meaningful

 

Core Performance

  • Total revenues were $550.9 million in the second quarter, up $73.0 million sequentially.
  • Net interest income increased $3.3 million, or 0.9% sequentially, benefiting from prudent deposit pricing, growth in PPP loan balances, and $9.2 million of PPP fees recognized in the quarter.
  • Net interest margin was 3.13%, down 24 bps from the prior quarter.
  • Non-interest revenue increased $69.6 million, or 67.0% sequentially, and increased $83.7 million, or 93.2% year-over-year. The sequential increase was largely attributable to $69.4 million of securities gains as a result of repositioning the investment portfolio.
  • Adjusted non-interest revenue decreased $4.0 million, or 4.0% sequentially, and increased $5.2 million, or 5.7% year-over-year. Mortgage revenue increased $11.3 million compared to the prior quarter on record production.
  • Non-interest expense increased $7.9 million, or 2.8% sequentially. Adjusted non-interest expense increased $5.3 million, or 1.9% sequentially.
    • The increase in expenses reflected a $7.1 million increase in mortgage commissions. Additionally, the second quarter included $6.7 million of professional fees associated with the implementation of Synovus Forward initiatives and $6.6 million of COVID-19 related expenses, partially offset by a $6.9 million reduction in benefits and payroll tax expense.
  • Provision for credit losses of $141.9 million reflected significant economic stress due to the COVID-19 healthcare crisis; allowance for credit losses coverage ratio (to loans) of 1.63%, or 1.74% excluding PPP loans.
  • Tax expense was $30.9 million, an increase of $27.3 million driven by higher pre-tax income and favorable discrete items in the first quarter; year-to-date effective tax rate of 20.74%.

Capital Ratios

 

 

 

 

 

 

 

 

 

 

 

2Q20

 

 

1Q20

 

2Q19

Common equity Tier 1 capital (CET1) ratio

 

8.90

%

*

 

8.70

%

 

9.61

%

Tier 1 capital ratio

 

10.15

 

*

 

9.95

 

 

10.09

 

Total risk-based capital ratio

 

12.70

 

*

 

12.29

 

 

12.11

 

Tier 1 leverage ratio

 

8.38

 

*

 

8.92

 

 

8.89

 

Tangible common equity ratio

 

7.41

 

 

 

7.94

 

 

8.56

 

* Ratios are preliminary.

 

Capital

  • CET1 ratio increased 20 bps during the quarter to 8.90%, benefiting from higher net income and a reduction of $68.9 million in risk-weighted assets sequentially.
  • Total risk-based capital of 12.70% is the highest since 2Q18 and reflects continued allowance build.

Second Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on July 21, 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 $54 billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services through 294 branches in Alabama, Florida, Georgia, South Carolina, 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 revenue; 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 revenue; 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 revenue are measures used by management to evaluate total revenues and non-interest revenue 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)

 

2Q20

 

1Q20

 

2Q19

Adjusted non-interest revenue

 

 

 

 

 

 

Total non-interest revenue

 

$

173,484

 

 

$

103,857

 

 

$

89,807

 

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

 

(69,409

)

 

(8,734

)

 

1,845

 

Subtract/add: Gain on sale and fair value (increase) decrease of private equity investments

 

(8,707

)

 

4,255

 

 

(1,455

)

Adjusted non-interest revenue

 

$

95,368

 

 

$

99,378

 

 

$

90,197

 

 

 

 

 

 

 

 

Adjusted non-interest expense

 

 

 

 

 

 

Total non-interest expense

 

$

284,141

 

 

$

276,279

 

 

$

264,126

 

Subtract: Earnout liability adjustments

 

(4,908

)

 

 

 

 

Subtract: Merger-related expense

 

 

 

 

 

(7,401

)

Subtract: Restructuring charges, net

 

(2,822

)

 

(3,220

)

 

(18

)

Subtract: Loss on early extinguishment of debt, net

 

 

 

(1,904

)

 

 

Adjusted non-interest expense

 

$

276,411

 

 

$

271,155

 

 

$

256,707

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

2Q20

 

1Q20

 

2Q19

Adjusted total revenues and adjusted tangible efficiency ratio

 

 

 

 

 

 

Adjusted non-interest expense

 

$

276,411

 

 

$

271,155

 

 

$

256,707

 

Subtract: Amortization of intangibles

 

(2,640

)

 

(2,640

)

 

(2,410

)

Adjusted tangible non-interest expense

 

$

273,771

 

 

$

268,515

 

 

$

254,297

 

 

 

 

 

 

 

 

Net interest income

 

$

376,566

 

 

$

373,260

 

 

$

397,262

 

Add: Tax equivalent adjustment

 

861

 

 

786

 

 

811

 

Add: Total non-interest revenue

 

173,484

 

 

103,857

 

 

89,807

 

Total FTE revenues

 

550,911

 

 

477,903

 

 

487,880

 

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

 

(69,409

)

 

(8,734

)

 

1,845

 

Subtract/add: Gain on sale and fair value (increase) decrease of private equity investments

 

(8,707

)

 

4,255

 

 

(1,455

)

Adjusted total revenues

 

$

472,795

 

 

$

473,424

 

 

$

488,270

 

Efficiency ratio-FTE

 

51.58

%

 

57.81

%

 

54.14

%

Adjusted tangible efficiency ratio

 

57.91

 

 

56.72

 

 

52.08

 

Adjusted return on average assets

 

 

 

 

 

 

Net income

 

$

93,192

 

 

$

38,521

 

 

$

156,184

 

Add: Earnout liability adjustments

 

4,908

 

 

 

 

 

Add: Merger-related expense

 

 

 

 

 

7,401

 

Add: Restructuring charges, net

 

2,822

 

 

3,220

 

 

18

 

Add: Loss on early extinguishment of debt, net

 

 

 

1,904

 

 

 

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

 

(69,409

)

 

(8,734

)

 

1,845

 

Subtract/add: Gain on sale and fair value (increase) decrease of private equity investments

 

(8,707

)

 

4,255

 

 

(1,455

)

Add/subtract: Tax effect of adjustments

 

19,500

 

 

(167

)

 

(1,951

)

Adjusted net income

 

$

42,306

 

 

$

38,999

 

 

$

162,042

 

Net income annualized

 

$

374,816

 

 

$

154,931

 

 

$

626,452

 

Adjusted net income annualized

 

$

170,154

 

 

$

156,853

 

 

$

649,949

 

Total average assets

 

$

52,853,685

 

 

$

48,696,595

 

 

$

46,679,769

 

Return on average assets

 

0.71

%

 

0.32

%

 

1.34

%

Adjusted return on average assets

 

0.32

 

 

0.32

 

 

1.39

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

Net income available to common shareholders

 

$

84,901

 

 

$

30,230

 

 

$

153,034

 

Add: Earnout liability adjustments

 

4,908

 

 

 

 

 

Add: Merger-related expense

 

 

 

 

 

7,401

 

Add: Restructuring charges, net

 

2,822

 

 

3,220

 

 

18

 

Add: Loss on early extinguishment of debt, net

 

 

 

1,904

 

 

 

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

 

(69,409

)

 

(8,734

)

 

1,845

 

Subtract/add: Gain on sale and fair value (increase) decrease of private equity investments

 

(8,707

)

 

4,255

 

 

(1,455

)

Add/subtract: Tax effect of adjustments

 

19,500

 

 

(167

)

 

(1,951

)

Adjusted net income available to common shareholders

 

$

34,015

 

 

$

30,708

 

 

$

158,892

 

Weighted average common shares outstanding, diluted

 

147,733

 

 

148,401

 

 

159,077

 

Net income per common share, diluted

 

$

0.57

 

 

$

0.20

 

 

$

0.96

 

Adjusted net income per common share, diluted

 

0.23

 

 

0.21

 

 

1.00

 

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

2Q20

 

1Q20

 

2Q19

 

 

 

 

 

 

 

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

 

$

84,901

 

 

$

30,230

 

 

$

153,034

 

Add: Earnout liability adjustments

 

4,908

 

 

 

 

 

Add: Merger-related expense

 

 

 

 

 

7,401

 

Add: Restructuring charges, net

 

2,822

 

 

3,220

 

 

18

 

Add: Loss on early extinguishment of debt, net

 

 

 

1,904

 

 

 

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

 

(69,409

)

 

(8,734

)

 

1,845

 

Subtract/add: Gain on sale and fair value (increase) decrease of private equity investments

 

(8,707

)

 

4,255

 

 

(1,455

)

Add/subtract: Tax effect of adjustments

 

19,500

 

 

(167

)

 

(1,951

)

Adjusted net income available to common shareholders

 

$

34,015

 

 

$

30,708

 

 

$

158,892

 

 

 

 

 

 

 

 

Adjusted net income available to common shareholders annualized

 

$

136,808

 

 

$

123,507

 

 

$

637,314

 

Add: Amortization of intangibles

 

7,868

 

 

7,868

 

 

7,250

 

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

 

$

144,676

 

 

$

131,375

 

 

$

644,564

 

 

 

 

 

 

 

 

Net income available to common shareholders annualized

 

$

341,470

 

 

$

121,584

 

 

$

613,818

 

Add: Amortization of intangibles

 

7,868

 

 

7,868

 

 

7,250

 

Net income available to common shareholders excluding amortization of intangibles annualized

 

$

349,338

 

 

$

129,452

 

 

$

621,068

 

 

 

 

 

 

 

 

Total average shareholders' equity less preferred stock

 

$

4,567,254

 

 

$

4,424,278

 

 

$

4,416,705

 

Subtract: Goodwill

 

(497,267

)

 

(497,267

)

 

(487,601

)

Subtract: Other intangible assets, net

 

(51,667

)

 

(54,514

)

 

(69,853

)

Total average tangible shareholders' equity less preferred stock

 

$

4,018,320

 

 

$

3,872,497

 

 

$

3,859,251

 

Return on average common equity

 

7.48

%

 

2.75

%

 

13.90

%

Adjusted return on average common equity

 

3.00

 

 

2.79

 

 

14.43

 

Return on average tangible common equity

 

8.69

 

 

3.34

 

 

16.09

 

Adjusted return on average tangible common equity

 

3.60

 

 

3.39

 

 

16.70

 

 

 

 

June 30,
2020

 

March 31,
2020

 

June 30,
2019

Tangible common equity ratio

 

 

 

 

 

 

Total assets

 

$

54,121,989

 

 

$

50,619,585

 

 

$

47,318,203

 

Subtract: Goodwill

 

(497,267

)

 

(497,267

)

 

(492,390

)

Subtract: Other intangible assets, net

 

(50,392

)

 

(53,032

)

 

(61,473

)

Tangible assets

 

$

53,574,330

 

 

$

50,069,286

 

 

$

46,764,340

 

 

 

 

 

 

 

 

Total shareholders’ equity

 

$

5,052,968

 

 

$

5,065,205

 

 

$

4,753,816

 

Subtract: Goodwill

 

(497,267

)

 

(497,267

)

 

(492,390

)

Subtract: Other intangible assets, net

 

(50,392

)

 

(53,032

)

 

(61,473

)

Subtract: Preferred Stock, no par value

 

(537,145

)

 

(537,145

)

 

(195,140

)

Tangible common equity

 

$

3,968,164

 

 

$

3,977,761

 

 

$

4,004,813

 

Total shareholders’ equity to total assets ratio

 

9.34

%

 

10.01

%

 

10.05

%

Tangible common equity ratio

 

7.41

 

 

7.94

 

 

8.56

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT DATA

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

 

 

 

 

 

Second Quarter

 

 

 

 

 

 

 

 

 

2020

 

2019

 

20 vs '19

 

 

 

 

% Change

 

 

 

 

 

 

 

Interest income

 

$

935,466

 

 

$

1,020,970

 

 

(8.4

)%

Interest expense

 

185,640

 

 

226,532

 

 

(18.1

)

 

 

 

 

 

 

 

Net interest income

 

749,826

 

 

794,438

 

 

(5.6

)

Provision for credit losses

 

300,573

 

 

35,688

 

 

742.2

 

 

 

 

 

 

 

 

Net interest income after provision for credit losses

 

449,253

 

 

758,750

 

 

(40.8

)

 

 

 

 

 

 

 

Non-interest revenue:

 

 

 

 

 

 

Service charges on deposit accounts

 

36,255

 

 

42,853

 

 

(15.4

)

Fiduciary and asset management fees

 

30,124

 

 

28,057

 

 

7.4

 

Card fees

 

20,136

 

 

22,037

 

 

(8.6

)

Brokerage revenue

 

22,383

 

 

19,431

 

 

15.2

 

Mortgage banking income

 

35,757

 

 

12,962

 

 

175.9

 

Capital markets income

 

17,294

 

 

14,161

 

 

22.1

 

Income from bank-owned life insurance

 

13,794

 

 

10,466

 

 

31.8

 

Investment securities gains/(losses), net

 

78,144

 

 

(1,771

)

 

nm

 

Gain on sale and fair value increase, net, of private equity investments

 

4,452

 

 

2,313

 

 

nm

 

Other non-interest revenue

 

19,002

 

 

18,676

 

 

1.7

 

 

 

 

 

 

 

 

Total non-interest revenue

 

277,341

 

 

169,185

 

 

63.9

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

Salaries and other personnel expense

 

309,274

 

 

282,436

 

 

9.5

 

Net occupancy, equipment, and software expense

 

83,921

 

 

78,245

 

 

7.3

 

Third-party processing and other services

 

42,846

 

 

36,875

 

 

16.2

 

Professional fees

 

25,980

 

 

15,660

 

 

65.9

 

FDIC insurance and other regulatory fees

 

12,129

 

 

14,629

 

 

(17.1

)

Amortization of intangibles

 

5,280

 

 

5,802

 

 

(9.0

)

Merger-related expense

 

 

 

57,140

 

 

nm

 

Earnout liability adjustments

 

4,908

 

 

 

 

nm

 

Loss on early extinguishment of debt, net

 

1,904

 

 

 

 

nm

 

Restructuring charges

 

6,042

 

 

37

 

 

nm

 

Other operating expenses

 

68,137

 

 

65,713

 

 

3.7

 

 

 

 

 

 

 

 

Total non-interest expense

 

560,421

 

 

556,537

 

 

0.7

 

 

 

 

 

 

 

 

Income before income taxes

 

166,173

 

 

371,398

 

 

(55.3

)

Income tax expense

 

34,461

 

 

95,028

 

 

(63.7

)

 

 

 

 

 

 

 

Net income

 

131,712

 

 

276,370

 

 

(52.3

)

 

 

 

 

 

 

 

Less: Preferred stock dividends

 

16,581

 

 

6,300

 

 

163.2

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

115,131

 

 

$

270,070

 

 

(57.4

)%

 

 

 

 

 

 

 

Net income per common share, basic

 

$

0.78

 

 

$

1.70

 

 

(53.9

)%

 

 

 

 

 

 

 

Net income per common share, diluted

 

0.78

 

 

1.68

 

 

(53.7

)

 

 

 

 

 

 

 

Cash dividends declared per common share

 

0.66

 

 

0.60

 

 

10.0

 

 

 

 

 

 

 

 

Return on average assets *

 

0.52

%

 

1.21

%

 

(69

)bps

Return on average common equity *

 

5.15

 

 

12.46

 

 

(731

)

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

147,300

 

 

159,148

 

 

(7.4

)%

Weighted average common shares outstanding, diluted

 

148,067

 

 

160,908

 

 

(8.0

)

 

 

 

 

 

 

 

nm - not meaningful

bps - basis points

* - ratios are annualized

  

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

 

2020

 

2019

 

Second Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second
Quarter

 

First
Quarter

 

Fourth
Quarter

 

Third
Quarter

 

Second
Quarter

 

20 vs '19

 

 

 

 

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

451,569

 

 

483,897

 

 

506,253

 

 

523,415

 

 

516,131

 

 

(12.5

)%

 

Interest expense

 

75,003

 

 

110,637

 

 

106,985

 

 

121,318

 

 

118,869

 

 

(36.9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

376,566

 

 

373,260

 

 

399,268

 

 

402,097

 

 

397,262

 

 

(5.2

)

 

Provision for credit losses

 

141,851

 

 

158,722

 

 

24,470

 

 

27,562

 

 

12,119

 

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for credit losses

 

234,715

 

 

214,538

 

 

374,798

 

 

374,535

 

 

385,143

 

 

(39.1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

15,567

 

 

20,689

 

 

22,385

 

 

22,952

 

 

21,994

 

 

(29.2

)

 

Fiduciary and asset management fees

 

14,950

 

 

15,174

 

 

15,645

 

 

14,686

 

 

14,478

 

 

3.3

 

 

Card fees

 

9,186

 

 

10,950

 

 

11,325

 

 

12,297

 

 

11,161

 

 

(17.7

)

 

Brokerage revenue

 

9,984

 

 

12,398

 

 

11,106

 

 

11,071

 

 

10,052

 

 

(0.7

)

 

Mortgage banking income

 

23,530

 

 

12,227

 

 

9,287

 

 

10,351

 

 

7,907

 

 

197.6

 

 

Capital markets income

 

6,050

 

 

11,243

 

 

8,972

 

 

7,396

 

 

8,916

 

 

(32.1

)

 

Income from bank-owned life insurance

 

7,756

 

 

6,038

 

 

5,620

 

 

5,139

 

 

5,176

 

 

49.8

 

 

Investment securities gains/(losses), net

 

69,409

 

 

8,734

 

 

(2,157

)

 

(3,731

)

 

(1,845

)

 

nm

 

 

Gain on sale and fair value increase/(decrease) of private equity investments

 

8,707

 

 

(4,255

)

 

8,100

 

 

1,194

 

 

1,455

 

 

nm

 

 

Other non-interest revenue

 

8,345

 

 

10,659

 

 

7,672

 

 

7,405

 

 

10,513

 

 

(20.6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest revenue

 

173,484

 

 

103,857

 

 

97,955

 

 

88,760

 

 

89,807

 

 

93.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and other personnel expense

 

159,597

 

 

149,678

 

 

145,084

 

 

142,516

 

 

143,009

 

 

11.6

 

 

Net occupancy, equipment, and software expense

 

41,727

 

 

42,194

 

 

42,644

 

 

41,017

 

 

39,851

 

 

4.7

 

 

Third-party processing and other services

 

21,366

 

 

21,480

 

 

20,293

 

 

18,528

 

 

19,118

 

 

11.8

 

 

Professional fees

 

15,305

 

 

10,675

 

 

9,921

 

 

9,719

 

 

9,312

 

 

64.4

 

 

FDIC insurance and other regulatory fees

 

6,851

 

 

5,278

 

 

9,825

 

 

7,242

 

 

7,867

 

 

(12.9

)

 

Amortization of intangibles

 

2,640

 

 

2,640

 

 

2,901

 

 

2,901

 

 

2,410

 

 

9.5

 

 

Merger-related expense

 

 

 

 

 

(913

)

 

353

 

 

7,401

 

 

nm

 

 

Earnout liability adjustments

 

4,908

 

 

 

 

 

 

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

 

2,822

 

 

3,220

 

 

1,259

 

 

(66

)

 

18

 

 

nm

 

 

Other operating expenses

 

28,925

 

 

39,210

 

 

33,996

 

 

36,551

 

 

35,140

 

 

(17.7

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest expense

 

284,141

 

 

276,279

 

 

266,121

 

 

276,310

 

 

264,126

 

 

7.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

124,058

 

 

42,116

 

 

206,632

 

 

186,985

 

 

210,824

 

 

(41.2

)

 

Income tax expense

 

30,866

 

 

3,595

 

 

54,948

 

 

51,259

 

 

54,640

 

 

(43.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

93,192

 

 

38,521

 

 

151,684

 

 

135,726

 

 

156,184

 

 

(40.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Preferred stock dividends

 

8,291

 

 

8,291

 

 

8,291

 

 

8,291

 

 

3,150

 

 

163.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

84,901

 

 

30,230

 

 

143,393

 

 

127,435

 

 

153,034

 

 

(44.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, basic

 

$

0.58

 

 

0.21

 

 

0.98

 

 

0.84

 

 

0.97

 

 

(40.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, diluted

 

0.57

 

 

0.20

 

 

0.97

 

 

0.83

 

 

0.96

 

 

(40.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

0.33

 

 

0.33

 

 

0.30

 

 

0.30

 

 

0.30

 

 

10.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets *

 

0.71

%

 

0.32

 

 

1.27

 

 

1.14

 

 

1.34

 

 

(63

)bps

 

Return on average common equity *

 

7.48

 

 

2.75

 

 

13.08

 

 

11.36

 

 

13.90

 

 

(642

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

147,288

 

 

147,311

 

 

146,948

 

 

152,238

 

 

157,389

 

 

(6.4

)%

 

Weighted average common shares outstanding, diluted

 

147,733

 

 

148,401

 

 

148,529

 

 

154,043

 

 

159,077

 

 

(7.1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

nm - not meaningful

 

bps - basis points

 

* - ratios are annualized

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET DATA

 

June 30,
2020

 

December 31,
2019

 

June 30,
2019

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Cash and due from banks

 

$

572,169

 

 

$

535,846

 

 

$

549,616

 

 

Interest-bearing funds with Federal Reserve Bank

 

860,289

 

 

553,390

 

 

531,488

 

 

Interest earning deposits with banks

 

20,719

 

 

20,635

 

 

20,271

 

 

Federal funds sold and securities purchased under resale agreements

 

118,048

 

 

77,047

 

 

49,946

 

 

Cash and cash equivalents

 

1,571,225

 

 

1,186,918

 

 

1,151,321

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale, at fair value

 

7,197,493

 

 

6,778,670

 

 

7,007,012

 

 

Loans held for sale ($266,306, $115,173, $81,855 measured at fair value, respectively)

 

900,936

 

 

115,173

 

 

86,716

 

 

 

 

 

 

 

 

 

 

Loans, net of deferred fees and costs

 

39,914,297

 

 

37,162,450

 

 

36,138,561

 

 

Allowance for loan losses

 

(588,648

)

 

(281,402

)

 

(257,376

)

 

Loans, net

 

39,325,649

 

 

36,881,048

 

 

35,881,185

 

 

 

 

 

 

 

 

 

 

Cash surrender value of bank-owned life insurance

 

1,038,049

 

 

775,665

 

 

766,287

 

 

Premises and equipment, net

 

481,716

 

 

493,940

 

 

490,644

 

 

Goodwill

 

497,267

 

 

497,267

 

 

492,390

 

 

Other intangible assets, net

 

50,392

 

 

55,671

 

 

61,473

 

 

Receivable on unsettled securities sales

 

1,289,116

 

 

 

 

 

 

Other assets

 

1,770,146

 

 

1,418,930

 

 

1,381,175

 

 

Total assets

 

$

54,121,989

 

 

$

48,203,282

 

 

$

47,318,203

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

$

12,555,714

 

 

$

9,439,485

 

 

$

9,205,066

 

 

Interest-bearing deposits

 

31,638,866

 

 

28,966,019

 

 

28,761,656

 

 

 

 

 

 

 

 

 

 

Total deposits

 

44,194,580

 

 

38,405,504

 

 

37,966,722

 

 

 

 

 

 

 

 

 

 

Federal funds purchased and securities sold under repurchase agreements

 

225,576

 

 

165,690

 

 

273,481

 

 

Other short-term borrowings

 

300,000

 

 

1,753,560

 

 

1,330,000

 

 

Long-term debt

 

2,327,921

 

 

2,153,897

 

 

2,306,072

 

 

Due on unsettled securities purchases

 

922,952

 

 

 

 

 

 

Other liabilities

 

1,097,992

 

 

782,941

 

 

688,112

 

 

Total liabilities

 

49,069,021

 

 

43,261,592

 

 

42,564,387

 

 

 

 

 

 

 

 

 

 

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 167,405,730, 166,800,623, and 166,079,543; outstanding 147,312,703, 147,157,596, and 156,872,026

 

167,406

 

 

166,801

 

 

166,080

 

 

Additional paid-in capital

 

3,826,726

 

 

3,819,336

 

 

3,801,748

 

 

Treasury stock, at cost – 20,093,027, 19,643,027, and 9,207,517 shares

 

(731,806

)

 

(715,560

)

 

(344,901

)

 

Accumulated other comprehensive income, net

 

202,970

 

 

65,641

 

 

49,289

 

 

Retained earnings

 

1,050,527

 

 

1,068,327

 

 

886,460

 

 

Total shareholders’ equity

 

5,052,968

 

 

4,941,690

 

 

4,753,816

 

 

Total liabilities and shareholders' equity

 

$

54,121,989

 

 

$

48,203,282

 

 

$

47,318,203

 

 

Synovus

 

 

 

 

 

 

 

 

AVERAGE BALANCES AND YIELDS/RATES (1)

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

2019

 

(Dollars in thousands)

 

 

 

 

 

2020

 

 

 

 

Second

First

 

Fourth

Third

Second

 

 

 

Quarter

Quarter

 

Quarter

Quarter

Quarter

 

Interest Earning Assets

 

 

 

 

 

 

 

 

Investment securities (2) (4)

 

$

6,618,533

 

6,680,047

 

 

 

6,696,768

 

 

6,831,036

 

 

6,955,386

 

 

 

Yield

 

2.72

%

3.09

 

 

 

3.12

 

 

3.14

 

 

3.03

 

 

 

Trading account assets (5)

 

$

6,173

 

6,306

 

 

 

7,986

 

 

5,519

 

 

4,853

 

 

 

Yield

 

2.19

%

2.70

 

 

 

2.69

 

 

4.01

 

 

1.83

 

 

 

Commercial loans (3) (4)

 

$

30,236,919

 

27,607,343

 

 

 

26,698,202

 

 

26,567,719

 

 

26,353,701

 

 

 

Yield

 

3.95

%

4.57

 

 

 

4.82

 

 

5.09

 

 

5.13

 

 

 

Consumer loans (3)

 

$

9,899,172

 

9,985,702

 

 

 

9,809,832

 

 

9,633,603

 

 

9,423,427

 

 

 

Yield

 

4.34

%

4.60

 

 

 

5.07

 

 

5.08

 

 

5.17

 

 

 

Allowance for loan losses

 

$

(498,545

)

(368,033

)

 

 

(269,052

)

 

(258,024

)

 

(259,284

)

 

 

Loans, net (3)

 

$

39,637,546

 

37,225,012

 

 

 

36,238,982

 

 

35,943,298

 

 

35,517,844

 

 

 

Yield

 

4.08

%

4.62

 

 

 

4.93

 

 

5.13

 

 

5.17

 

 

 

Mortgage loans held for sale

 

$

221,157

 

86,415

 

 

 

117,909

 

 

99,556

 

 

70,497

 

 

 

Yield

 

3.09

%

3.67

 

 

 

3.77

 

 

3.93

 

 

4.27

 

 

 

Other loans held for sale

 

$

19,246

 

 

 

 

 

 

475

 

 

272

 

 

 

Yield

 

4.19

%

 

 

 

 

 

 

 

 

 

 

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

 

$

1,709,086

 

652,130

 

 

 

514,635

 

 

513,160

 

 

511,488

 

 

 

Yield

 

0.11

%

1.02

 

 

 

1.71

 

 

2.08

 

 

2.37

 

 

 

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

 

$

247,801

 

284,082

 

 

 

278,586

 

 

254,994

 

 

234,949

 

 

 

Yield

 

3.60

%

3.38

 

 

 

2.85

 

 

3.85

 

 

3.29

 

 

 

Total interest earning assets

 

$

48,459,542

 

44,933,992

 

 

 

43,854,866

 

 

43,648,038

 

 

43,295,289

 

 

 

Yield

 

3.75

%

4.33

 

 

 

4.60

 

 

4.78

 

 

4.79

 

 

 

Interest-Bearing Liabilities

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

7,260,940

 

6,445,986

 

 

 

6,381,282

 

 

6,138,810

 

 

6,335,953

 

 

 

Rate

 

0.21

%

0.51

 

 

 

0.60

 

 

0.69

 

 

0.71

 

 

 

Money Market accounts

 

$

12,238,479

 

11,548,014

 

 

 

10,526,296

 

 

10,138,783

 

 

10,024,836

 

 

 

Rate

 

0.46

%

1.00

 

 

 

1.13

 

 

1.26

 

 

1.23

 

 

 

Savings deposits

 

$

1,036,024

 

926,822

 

 

 

915,640

 

 

900,366

 

 

904,183

 

 

 

Rate

 

0.02

%

0.05

 

 

 

0.05

 

 

0.05

 

 

0.05

 

 

 

Time deposits under $100,000

 

$

1,621,943

 

1,761,741

 

 

 

1,873,350

 

 

2,100,492

 

 

2,245,878

 

 

 

Rate

 

1.43

%

1.64

 

 

 

1.27

 

 

1.39

 

 

1.39

 

 

 

Time deposits over $100,000

 

$

4,772,555

 

5,051,705

 

 

 

5,198,266

 

 

5,957,691

 

 

6,331,665

 

 

 

Rate

 

1.80

%

2.04

 

 

 

1.51

 

 

1.69

 

 

1.70

 

 

 

Other brokered deposits

 

$

1,998,571

 

1,376,669

 

 

 

1,156,131

 

 

993,078

 

 

766,718

 

 

 

Rate

 

0.25

%

1.42

 

 

 

1.84

 

 

2.47

 

 

2.46

 

 

 

Brokered time deposits

 

$

2,244,429

 

2,166,496

 

 

 

2,121,069

 

 

2,119,149

 

 

1,985,589

 

 

 

Rate

 

1.86

%

2.11

 

 

 

2.16

 

 

2.27

 

 

2.28

 

 

 

Total interest-bearing deposits

 

$

31,172,941

 

29,277,433

 

 

 

28,172,034

 

 

28,348,369

 

 

28,594,822

 

 

 

Rate

 

0.73

%

1.18

 

 

 

1.16

 

 

1.32

 

 

1.30

 

 

 

Federal funds purchased and securities sold under repurchase agreements

 

$

250,232

 

167,324

 

 

 

192,731

 

 

221,045

 

 

300,168

 

 

 

Rate

 

0.12

%

0.30

 

 

 

0.24

 

 

0.22

 

 

0.20

 

 

 

Other short-term borrowings

 

$

550,000

 

1,384,362

 

 

 

1,565,507

 

 

1,307,370

 

 

1,090,581

 

 

 

Rate

 

1.23

%

1.66

 

 

 

1.87

 

 

2.31

 

 

2.59

 

 

 

Long-term debt

 

$

2,834,188

 

2,678,651

 

 

 

2,153,983

 

 

2,286,221

 

 

2,114,819

 

 

 

Rate

 

2.36

%

2.78

 

 

 

3.07

 

 

3.32

 

 

3.53

 

 

 

Total interest-bearing liabilities

 

$

34,807,361

 

33,507,770

 

 

 

32,084,255

 

 

32,163,005

 

 

32,100,390

 

 

 

Rate

 

0.86

%

1.30

 

 

 

1.30

 

 

1.47

 

 

1.48

 

 

 

Non-interest-bearing demand deposits

 

$

11,923,534

 

9,409,774

 

 

 

9,706,784

 

 

9,365,776

 

 

9,304,839

 

 

 

Cost of funds

 

0.65

%

1.04

 

 

 

1.02

 

 

1.16

 

 

1.15

 

 

 

Net interest margin

 

3.13

%

3.37

 

 

 

3.65

 

 

3.69

 

 

3.69

 

 

 

Taxable equivalent adjustment (4)

 

$

861

 

786

 

 

 

769

 

 

819

 

 

811

 

 

 

(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)

 

 

 

 

 

 

 

 

 

Linked

 

 

 

 

 

 

 

 

 

Total Loans

 

Total Loans

 

Quarter

 

Total Loans

 

Year/Year

Loan Type

 

June 30, 2020

 

March 31, 2020

 

% Change

 

June 30, 2019

 

% Change

Commercial, Financial, and Agricultural

 

$

13,136,696

 

 

$

11,018,155

 

 

19.2

%

 

$

9,716,939

 

 

35.2

%

Owner-Occupied

 

6,801,580

 

 

6,643,287

 

 

2.4

 

 

6,511,805

 

 

4.4

 

Total Commercial & Industrial

 

19,938,276

 

 

17,661,442

 

 

12.9

 

 

16,228,744

 

 

22.9

 

Multi-Family

 

2,252,820

 

 

2,108,360

 

 

6.9

 

 

2,023,061

 

 

11.4

 

Hotels

 

1,364,511

 

 

1,314,053

 

 

3.8

 

 

1,244,519

 

 

9.6

 

Office Buildings

 

2,297,721

 

 

2,264,844

 

 

1.5

 

 

2,297,515

 

 

 

Shopping Centers

 

1,738,504

 

 

1,741,557

 

 

(0.2

)

 

1,682,283

 

 

3.3

 

Warehouses

 

781,252

 

 

761,863

 

 

2.5

 

 

686,827

 

 

13.7

 

Other Investment Property

 

1,012,392

 

 

1,027,757

 

 

(1.5

)

 

980,787

 

 

3.2

 

Total Investment Properties

 

9,447,200

 

 

9,218,434

 

 

2.5

 

 

8,914,992

 

 

6.0

 

1-4 Family Construction

 

229,999

 

 

255,005

 

 

(9.8

)

 

276,068

 

 

(16.7

)

1-4 Family Investment Mortgage

 

466,809

 

 

482,773

 

 

(3.3

)

 

528,358

 

 

(11.6

)

Total 1-4 Family Properties

 

696,808

 

 

737,778

 

 

(5.6

)

 

804,426

 

 

(13.4

)

Commercial Development

 

112,539

 

 

107,351

 

 

4.8

 

 

138,840

 

 

(18.9

)

Residential Development

 

270,952

 

 

303,459

 

 

(10.7

)

 

213,823

 

 

26.7

 

Land Acquisition

 

300,036

 

 

304,179

 

 

(1.4

)

 

295,165

 

 

1.7

 

Land and Development

 

683,527

 

 

714,989

 

 

(4.4

)

 

647,828

 

 

5.5

 

Total Commercial Real Estate

 

10,827,535

 

 

10,671,201

 

 

1.5

 

 

10,367,246

 

 

4.4

 

Consumer Mortgages

 

5,811,376

 

 

5,608,121

 

 

3.6

 

 

5,407,762

 

 

7.5

 

Home Equity Lines

 

1,710,264

 

 

1,778,862

 

 

(3.9

)

 

1,650,745

 

 

3.6

 

Credit Cards

 

250,448

 

 

261,581

 

 

(4.3

)

 

258,283

 

 

(3.0

)

Other Consumer Loans

 

1,474,583

 

 

2,302,349

 

 

(36.0

)

 

2,249,337

 

 

(34.4

)

Total Consumer

 

9,246,671

 

 

9,950,913

 

 

(7.1

)

 

9,566,127

 

 

(3.3

)

Unearned Income

 

(98,185

)

 

(25,532

)

 

284.6

 

 

(23,556

)

 

316.8

 

Total

 

$

39,914,297

 

 

$

38,258,024

 

 

4.3

%

 

$

36,138,561

 

 

10.4

%

 

 

 

 

 

 

 

 

 

 

 

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

 

June 30, 2020

 

March 31, 2020

 

% Change

 

June 30, 2019

 

% Change

Commercial, Financial, and Agricultural

 

$

83,000

 

 

$

99,287

 

 

(16.4

)%

 

$

72,934

 

 

13.8

%

Owner-Occupied

 

19,605

 

 

17,357

 

 

13.0

 

 

13,465

 

 

45.6

 

Total Commercial & Industrial

 

102,605

 

 

116,644

 

 

(12.0

)

 

86,399

 

 

18.8

 

Multi-Family

 

 

 

356

 

 

(100.0

)

 

 

 

nm

 

Hotels

 

 

 

 

 

nm

 

 

 

 

nm

 

Office Buildings

 

836

 

 

836

 

 

 

 

300

 

 

178.7

 

Shopping Centers

 

409

 

 

712

 

 

(42.6

)

 

671

 

 

(39.0

)

Other Investment Property

 

393

 

 

308

 

 

27.6

 

 

7

 

 

nm

 

Total Investment Properties

 

1,638

 

 

2,212

 

 

(25.9

)

 

978

 

 

67.5

 

1-4 Family Construction

 

2,593

 

 

278

 

 

832.7

 

 

208

 

 

nm

 

1-4 Family Investment Mortgage

 

1,844

 

 

2,047

 

 

(9.9

)

 

1,637

 

 

12.6

 

Total 1-4 Family Properties

 

4,437

 

 

2,325

 

 

90.8

 

 

1,845

 

 

140.5

 

Commercial Development

 

840

 

 

596

 

 

40.9

 

 

 

 

nm

 

Residential Development

 

685

 

 

561

 

 

22.1

 

 

1,253

 

 

(45.3

)

Land Acquisition

 

1,042

 

 

1,043

 

 

(0.1

)

 

1,482

 

 

(29.7

)

Land and Development

 

2,567

 

 

2,200

 

 

16.7

 

 

2,735

 

 

(6.1

)

Total Commercial Real Estate

 

8,642

 

 

6,737

 

 

28.3

 

 

5,558

 

 

55.5

 

Consumer Mortgages

 

17,438

 

 

13,571

 

 

28.5

 

 

13,628

 

 

28.0

 

Home Equity Lines

 

14,200

 

 

12,475

 

 

13.8

 

 

13,830

 

 

2.7

 

Other Consumer Loans

 

4,552

 

 

6,860

 

 

(33.6

)

 

4,667

 

 

(2.5

)

Total Consumer

 

36,190

 

 

32,906

 

 

10.0

 

 

32,125

 

 

12.7

 

Total

 

$

147,437

 

 

$

156,287

 

 

(5.7

)%

 

$

124,082

 

 

18.8

%

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY DATA

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

2020

 

2019

 

Second
Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second

 

First

 

Fourth

 

Third

 

Second

 

20 vs '19

 

 

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Loans (NPLs)

 

$

147,437

 

 

156,287

 

101,636

 

115,915

 

124,083

 

 

18.8

%

 

Other Real Estate and Other Assets

 

30,242

 

 

33,679

 

35,810

 

35,400

 

15,479

 

 

95.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Assets (NPAs)

 

177,679

 

 

189,966

 

137,446

 

151,315

 

139,562

 

 

27.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses (ALL)

 

588,648

 

 

493,452

 

281,402

 

265,013

 

257,376

 

 

128.7

 

 

Reserve for Unfunded Commitments

 

61,029

 

 

38,420

 

1,375

 

1,496

 

995

 

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses (ACL)

 

649,677

 

 

531,872

 

282,777

 

266,509

 

258,371

 

 

151.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Charge-Offs - Quarter

 

24,045

 

 

20,061

 

8,821

 

19,925

 

11,779

 

 

 

 

Net Charge-Offs - YTD

 

44,106

 

 

20,061

 

57,612

 

48,791

 

28,867

 

 

 

 

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

 

0.24

%

 

0.21

 

0.10

 

0.22

 

0.13

 

 

 

 

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

 

0.23

 

 

0.21

 

0.16

 

0.18

 

0.16

 

 

 

 

NPLs / Loans

 

0.37

 

 

0.41

 

0.27

 

0.32

 

0.34

 

 

 

 

NPAs / Loans, ORE and specific other assets

 

0.44

 

 

0.50

 

0.37

 

0.42

 

0.39

 

 

 

 

ACL/Loans

 

1.63

 

 

1.39

 

0.76

 

0.73

 

0.71

 

 

 

 

ALL/Loans

 

1.47

 

 

1.29

 

0.76

 

0.73

 

0.71

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACL/NPLs

 

440.65

 

 

340.32

 

278.23

 

229.92

 

208.22

 

 

 

 

ALL/NPLs

 

399.25

 

 

315.74

 

276.87

 

228.63

 

207.42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past Due Loans over 90 days and Still Accruing

 

$

8,391

 

 

6,398

 

15,943

 

15,660

 

5,851

 

 

43.4

 

 

As a Percentage of Loans Outstanding

 

0.02

%

 

0.02

 

0.04

 

0.04

 

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Past Due Loans and Still Accruing

 

$

46,390

 

 

83,235

 

123,793

 

88,219

 

80,792

 

 

(42.6

)

 

As a Percentage of Loans Outstanding

 

0.12

%

 

0.22

 

0.33

 

0.24

 

0.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing Troubled Debt Restructurings (TDRs)

 

$

166,461

 

 

160,128

 

133,145

 

130,019

 

126,369

 

 

31.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Ratio is annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED CAPITAL INFORMATION (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2020

 

December 31,
2019

 

June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital

 

$

4,364,077

 

 

4,280,604

 

4,094,672

 

 

 

 

 

 

 

Total Risk-Based Capital

 

5,459,271

 

 

5,123,381

 

4,913,043

 

 

 

 

 

 

 

Common Equity Tier 1 Capital Ratio

 

8.90

%

 

8.95

 

9.61

 

 

 

 

 

 

 

Tier 1 Capital Ratio

 

10.15

 

 

10.23

 

10.09

 

 

 

 

 

 

 

Total Risk-Based Capital Ratio

 

12.70

 

 

12.25

 

12.11

 

 

 

 

 

 

 

Tier 1 Leverage Ratio

 

8.38

 

 

9.16

 

8.89

 

 

 

 

 

 

 

Common Equity as a Percentage of Total Assets (2)

 

8.34

 

 

9.14

 

9.63

 

 

 

 

 

 

 

Tangible Common Equity Ratio (3) (5)

 

7.41

 

 

8.08

 

8.56

 

 

 

 

 

 

 

Book Value Per Common Share (4)

 

$

30.65

 

 

29.93

 

29.06

 

 

 

 

 

 

 

Tangible Book Value Per Common Share (3)

 

26.94

 

 

26.17

 

25.53

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.