SNV
$49.25
Synovus Financial
$.23
.47%
Earnings Details
3rd Quarter September 2021
Tuesday, October 19, 2021 6:30:00 AM
Tweet Share Watch
Summary

Synovus Financial Beats

Synovus Financial (SNV) reported 3rd Quarter September 2021 earnings of $1.20 per share on revenue of $527.5 million. The consensus earnings estimate was $1.07 per share on revenue of $489.5 million. The Earnings Whisper number was $1.17 per share. Revenue fell 4.1% compared to the same quarter a year ago.

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
$1.20
Earnings Whisper
$1.17
Consensus Estimate
$1.07
Reported Revenue
$527.5 Mil
Revenue Estimate
$489.5 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Synovus Announces Earnings for the Third Quarter 2021

Diluted Earnings per Share of $1.21 vs. $0.56 in 3Q20

Adjusted Diluted Earnings per Share of $1.20 vs. $0.89 in 3Q20

COLUMBUS, Ga.--(BUSINESS WIRE)--Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended September 30, 2021.

Third Quarter 2021 Highlights

  • Net income available to common shareholders of $178.5 million or $1.21 per diluted share, up $0.02 sequentially and up $0.65 compared to prior year.
    • Adjusted diluted EPS of $1.20, unchanged sequentially and up $0.31 compared to prior year.
  • Period-end loans increased $105.0 million sequentially, or $922.7 million excluding Paycheck Protection program (PPP) loans.
    • PPP loans declined $817.7 million sequentially.
  • Core transaction deposits (non-interest bearing, NOW/savings, and money market deposits excluding public and brokered funds) increased $1.03 billion or 3% sequentially.
  • Total deposit costs of 0.13% down 3 bps sequentially due to ongoing repricing and product remixing.
  • Net interest income of $384.9 million increased $3.1 million sequentially as asset growth, reduced deposit costs, and a higher day count more than offset continued fixed-rate repricing and the slight reduction in LIBOR.
    • Net interest margin of 3.01%, down 1 bp sequentially.
  • Non-interest revenue increased $7.9 million as broad-based growth helped to offset continued normalization of net mortgage revenue.
    • Adjusted non-interest revenue increased $8.1 million.
  • Non-interest expense decreased $3.5 million sequentially as reductions in third-party processing and other services offset increases in other areas such as net occupancy, equipment, and software expense.
    • Adjusted non-interest expense decreased $1.2 million sequentially.
  • Pre-provision net revenue of $232.8 million increased $14.4 million sequentially as total revenue increased $10.9 million and non-interest expense decreased $3.5 million.
  • Reversal of provision for credit losses of $7.9 million, primarily from a more favorable economic outlook.
    • Allowance for credit losses coverage ratio (to loans) of 1.40%, or 1.42% excluding PPP loans.
  • Credit quality metrics remain relatively stable, near historical lows. The net charge-off ratio declined 6 bps from prior quarter to 0.22%; the non-performing loan and asset ratios each fell 1 bp to 0.41% and 0.45%, respectively; and criticized and classified loans declined 22%.
  • Preliminary CET1 ratio declined 12 bps sequentially to 9.63%, with strong core earnings helping offset the decline from deploying capital for balance sheet growth and returning capital to shareholders.
    • Includes $74.6 million in share repurchases at an average price of $42.00.
  • Achieved pre-tax run rate benefit of approximately $100 million at the end of the quarter from a combination of revenue and expense initiatives under Synovus Forward, which is designed to make Synovus a more efficient, profitable, and nimble organization.
    • On track to achieve an aggregate $175 million pre-tax run rate benefit by the end of 2022.

Third Quarter Summary

 

Reported

 

Adjusted

(dollars in thousands)

3Q21

 

2Q21

 

3Q20

 

3Q21

 

2Q21

 

3Q20

Net income available to common shareholders

$

178,482

 

 

$

177,909

 

 

$

83,283

 

 

$

177,760

 

 

$

178,969

 

 

$

131,364

 

Diluted earnings per share

1.21

 

 

1.19

 

 

0.56

 

 

1.20

 

 

1.20

 

 

0.89

 

Total loans

38,341,030

 

 

38,236,018

 

 

39,549,847

 

 

 

N/A

 

 

N/A

 

 

 

N/A

 

Total deposits

47,688,419

 

 

47,171,962

 

 

44,665,904

 

 

 

N/A

 

 

 

N/A

 

 

N/A

 

Total TE(1) revenue

500,608

 

 

489,738

 

 

492,357

 

 

499,743

 

 

488,612

 

 

492,851

 

Return on avg assets

1.34

%

 

1.36

%

 

0.69

%

 

1.33

%

 

1.37

%

 

1.05

%

Return on avg common equity

14.96

 

 

15.40

 

 

7.28

 

 

14.90

 

 

15.50

 

 

11.48

 

Return on avg tangible common equity

16.85

 

 

17.41

 

 

8.46

 

 

16.79

 

 

17.52

 

 

13.24

 

Net interest margin

3.01

 

 

3.02

 

 

3.10

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

Efficiency ratio-TE(1)

53.34

 

 

55.24

 

 

64.31

 

 

52.96

 

 

54.41

 

 

53.83

 

NCO ratio

0.22

 

 

0.28

 

 

0.29

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

NPA ratio

0.45

 

 

0.46

 

 

0.49

 

 

 

N/A

 

 

 

N/A

 

 

N/A

 

(1) Taxable equivalent

“Our third quarter story was shaped by an intense focus on growth, and we are pleased with the results,” said Kevin Blair, Synovus president and CEO. “Loans, excluding PPP, grew $923 million, core transaction deposits were up $1.0 billion, and pre-provision net revenue increased 7 percent versus the second quarter. Our ongoing Synovus Forward initiatives reached a pre-tax run rate benefit of $100 million by quarter end and we are executing on an additional $75 million of benefits to be delivered by the end of 2022. Synovus Forward represents our ongoing innovation and profitable growth mindset, guiding our efforts to deliver sustainable, top quartile financial performance and enabling us to invest in areas with long-term benefit. With these strategic investments, combined with the momentum we are experiencing in our core businesses, our team is confident in our ability to continue to deliver as we build the bank of the future.”

Balance Sheet

Loans*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

3Q21

 

2Q21

 

Linked
Quarter
Change

 

Linked
Quarter %
Change

 

3Q20

 

Year/Year
Change

 

Year/Year
% Change

Commercial & industrial

$

18,934.8

 

 

$

19,150.1

 

 

$

(215.3

)

 

(1

)%

 

$

20,123.6

 

 

$

(1,188.9

)

 

(6

)%

Commercial real estate

10,540.3

 

 

10,361.1

 

 

179.2

 

 

2

 

 

10,736.1

 

 

(195.8

)

 

(2

)

Consumer

8,866.0

 

 

8,724.8

 

 

141.1

 

 

2

 

 

8,690.1

 

 

175.8

 

 

2

 

Total loans

$

38,341.0

 

 

$

38,236.0

 

 

$

105.0

 

 

%

 

$

39,549.8

 

 

$

(1,208.9

)

 

(3

)%

*Amounts may not total due to rounding

  • Total loans ended the quarter at $38.34 billion, up $105.0 million sequentially, or $922.7 million excluding PPP loans.
  • Commercial and industrial (C&I) loans declined $215.3 million sequentially, led by a decline in PPP loan balances of $817.7 million.
    • C&I loan growth of $602.3 million excluding PPP balance changes despite line utilization remaining near historic lows at 39%.
  • CRE loans increased $179.2 million, primarily in the income-producing real estate portfolio.
  • Consumer loans increased $141.1 million sequentially, with growth of $266.5 million in third-party consumer lending offsetting declines in consumer mortgages and HELOCs of $92.3 million and $50.0 million, respectively.

Deposits*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

3Q21

 

2Q21

 

Linked
Quarter
Change

 

Linked
Quarter %
Change

 

3Q20

 

Year/Year
Change

 

Year/Year
% Change

Non-interest-bearing DDA

$

14,832.9

 

 

$

14,342.6

 

 

$

490.3

 

 

3

%

 

$

12,129.8

 

 

$

2,703.2

 

 

22

%

Interest-bearing DDA

6,056.0

 

 

5,839.8

 

 

216.2

 

 

4

 

 

5,291.1

 

 

764.8

 

 

14

 

Money market

14,267.4

 

 

13,983.1

 

 

284.3

 

 

2

 

 

12,441.3

 

 

1,826.1

 

 

15

 

Savings

1,380.4

 

 

1,341.5

 

 

39.0

 

 

3

 

 

1,126.0

 

 

254.4

 

 

23

 

Public funds

5,791.6

 

 

5,804.9

 

 

(13.3

)

 

 

 

5,791.9

 

 

(0.4

)

 

 

Time deposits

2,579.3

 

 

2,891.1

 

 

(311.8

)

 

(11

)

 

3,976.5

 

 

(1,397.1

)

 

(35

)

Brokered deposits

2,780.7

 

 

2,969.0

 

 

(188.3

)

 

(6

)

 

3,909.3

 

 

(1,128.6

)

 

(29

)

Total deposits

$

47,688.4

 

 

$

47,172.0

 

 

$

516.5

 

 

1

%

 

$

44,665.9

 

 

$

3,022.5

 

 

7

%

*Amounts may not total due to rounding

  • Total deposits ended the quarter at $47.69 billion, up $516.5 million sequentially.
  • Core transaction deposits increased $1.03 billion or 3% sequentially.
    • Broad-based growth in DDA, NOW, MMA, and savings accounts supported strategic declines in higher cost deposits.
  • Total deposit costs declined 3 bps sequentially to 0.13%.

Income Statement Summary**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data)

3Q21

 

2Q21

 

Linked
Quarter
Change

 

Linked
Quarter %
Change

 

3Q20

 

Year/Year
Change

 

Year/Year
% Change

Net interest income

$

384,917

 

 

$

381,860

 

 

$

3,057

 

 

1

%

 

$

376,990

 

 

$

7,927

 

 

2

%

Non-interest revenue

114,955

 

 

107,087

 

 

7,868

 

 

7

 

 

114,411

 

 

544

 

 

 

Non-interest expense

267,032

 

 

270,531

 

 

(3,499

)

 

(1

)

 

316,655

 

 

(49,623

)

 

(16

)

(Reversal of) provision for credit losses

(7,868

)

 

(24,598

)

 

16,730

 

 

68

 

 

43,383

 

 

(51,251

)

 

nm

 

Income before taxes

$

240,708

 

 

$

243,014

 

 

$

(2,306

)

 

(1

)%

 

$

131,363

 

 

$

109,345

 

 

83

%

Income tax expense

53,935

 

 

56,814

 

 

(2,879

)

 

(5

)

 

39,789

 

 

14,146

 

 

36

 

Preferred stock dividends

8,291

 

 

8,291

 

 

 

 

 

 

8,291

 

 

 

 

 

Net income available to common shareholders

$

178,482

 

 

$

177,909

 

 

$

573

 

 

%

 

$

83,283

 

 

$

95,199

 

 

114

%

Weighted average common shares outstanding, diluted

147,701

 

 

149,747

 

 

(2,046

)

 

(1

)%

 

147,976

 

 

(275

)

 

%

Diluted earnings per share

$

1.21

 

 

$

1.19

 

 

$

0.02

 

 

2

 

 

$

0.56

 

 

$

0.65

 

 

116

 

Adjusted diluted earnings per share

1.20

 

 

1.20

 

 

 

 

 

 

0.89

 

 

0.31

 

 

35

 

** Amounts may not total due to rounding

Core Performance

  • Net interest income of $384.9 million increased $3.1 million sequentially as asset growth and reduced deposit costs more than offset continued fixed-rate repricing and the slight reduction in LIBOR.
    • Net PPP fee accretion of $21.3 million, up $0.9 million sequentially.
    • Net interest margin was 3.01%, down 1 bp sequentially.
  • Non-interest revenue increased $7.9 million, or 7% sequentially. Adjusted non-interest revenue increased $8.1 million, or 8% sequentially, and decreased $0.8 million, or 1% compared to prior year.
    • Broad-based growth including $4.8 million in capital markets income helped offset normalization of net mortgage revenue, which declined $2.7 million sequentially.
  • Non-interest expense decreased $3.5 million, or 1% sequentially. Adjusted non-interest expense decreased $1.2 million sequentially.
    • Declines in third-party processing and other services of $5.0 million offset an increase in additional project spend that contributed to the $1.7 million increase in net occupancy, equipment, and software expense.
  • Pre-provision net revenue of $232.8 million increased $14.4 million sequentially as total revenue increased $10.9 million and non-interest expense decreased $3.5 million.
  • Reversal of provision for credit losses of $7.9 million from the provision expense associated with strong loan growth being more than offset by a reduction in life of loan loss estimates; allowance for credit losses coverage ratio (to loans) of 1.40%, or 1.42% excluding PPP loans.
  • Tax expense was $53.9 million, a decrease of $2.9 million sequentially due to lower taxable income and favorable changes in discrete items.
    • Year-to-date effective tax rate of 22.21%.

Capital Ratios

 

 

 

 

 

 

 

 

3Q21

 

 

2Q21

 

3Q20

Common equity Tier 1 capital (CET1) ratio

9.63

%

*

9.75

%

 

9.30

%

Tier 1 capital ratio

10.83

 

*

11.00

 

 

10.57

 

Total risk-based capital ratio

12.96

 

*

13.25

 

 

13.16

 

Tier 1 leverage ratio

8.82

 

*

8.72

 

 

8.48

 

Tangible common equity ratio

7.68

 

 

7.73

 

 

7.67

 

* Ratios are preliminary.

Capital

  • Preliminary CET1 ratio declined 12 bps during the quarter to 9.63% as strong core performance helped offset the impact of asset growth and $74.6 million in share repurchases at an average price of $42.00.
  • Total risk-based capital ratio of 12.96% declined 29 bps from the prior quarter following a reduction in the Allowance for Credit Losses.

Third Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on October 19, 2021. 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 $56 billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services through 283 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; expectations on our growth strategy, expense and revenue initiatives, capital management, balance sheet management, 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 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, 2020, 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; total adjusted revenue; adjusted tangible efficiency ratio; pre-provision net revenue; adjusted net income available to common shareholders; adjusted diluted earnings per 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 TE revenue; efficiency ratio-TE; income before income taxes; net income available to common shareholders; diluted earnings per 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. Total adjusted revenue and adjusted non-interest revenue are measures used by management to evaluate total TE revenue and non-interest revenue exclusive of net investment securities gains (losses), gain on sale and changes in the fair value of private equity investments, net, and fair value adjustment on non-qualified deferred compensation. 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. Pre-provision net revenue is used by management to evaluate income before income taxes exclusive of (reversal of) provision for credit losses. Adjusted net income available to common shareholders, adjusted diluted earnings per 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)

3Q21

 

2Q21

 

3Q20

Adjusted non-interest revenue

 

 

 

 

 

Total non-interest revenue

$

114,955

 

 

$

107,087

 

 

$

114,411

 

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

(962

)

 

 

 

1,550

 

Subtract: Fair value increase of private equity investments

 

 

 

 

(260

)

Add/subtract: Fair value adjustment on non-qualified deferred compensation

97

 

 

(1,126

)

 

(796

)

Adjusted non-interest revenue

$

114,090

 

 

$

105,961

 

 

$

114,905

 

 

 

 

 

 

 

Adjusted non-interest expense

 

 

 

 

 

Total non-interest expense

$

267,032

 

 

$

270,531

 

 

$

316,655

 

Add/subtract: Earnout liability adjustment

243

 

 

(750

)

 

 

Subtract: Goodwill impairment

 

 

 

 

(44,877

)

Subtract: Restructuring charges

(319

)

 

(415

)

 

(2,882

)

Subtract: Loss on early extinguishment of debt, net

 

 

 

 

(154

)

Add/subtract: Fair value adjustment on non-qualified deferred compensation

97

 

 

(1,126

)

 

(796

)

Adjusted non-interest expense

$

267,053

 

 

$

268,240

 

 

$

267,946

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

3Q21

 

2Q21

 

3Q20

Total adjusted revenue and adjusted tangible efficiency ratio

 

 

 

 

 

Adjusted non-interest expense

$

267,053

 

 

$

268,240

 

 

$

267,946

 

Subtract: Amortization of intangibles

(2,379

)

 

(2,379

)

 

(2,640

)

Adjusted tangible non-interest expense

$

264,674

 

 

$

265,861

 

 

$

265,306

 

 

 

 

 

 

 

Net interest income

$

384,917

 

 

$

381,860

 

 

$

376,990

 

Add: Tax equivalent adjustment

736

 

 

791

 

 

956

 

Add: Total non-interest revenue

114,955

 

 

107,087

 

 

114,411

 

Total TE revenue

500,608

 

 

489,738

 

 

492,357

 

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

(962

)

 

 

 

1,550

 

Subtract: Fair value increase of private equity investments

 

 

 

 

(260

)

Add/subtract: Fair value adjustment on non-qualified deferred compensation

97

 

 

(1,126

)

 

(796

)

Total adjusted revenue

$

499,743

 

 

$

488,612

 

 

$

492,851

 

Efficiency ratio-TE

53.34

%

 

55.24

%

 

64.31

%

Adjusted tangible efficiency ratio

52.96

 

 

54.41

 

 

53.83

 

Pre-provision net revenue

 

 

 

 

 

Net interest income

$

384,917

 

 

$

381,860

 

 

$

376,990

 

Add: Total non-interest revenue

114,955

 

 

107,087

 

 

114,411

 

Subtract: Total non-interest expense

267,032

 

 

270,531

 

 

316,655

 

Pre-provision net revenue

$

232,840

 

 

$

218,416

 

 

$

174,746

 

Adjusted return on average assets

 

 

 

 

 

Net income

$

186,773

 

 

$

186,200

 

 

$

91,574

 

Subtract/add: Earnout liability adjustment

(243

)

 

750

 

 

 

Add: Goodwill impairment

 

 

 

 

44,877

 

Add: Restructuring charges

319

 

 

415

 

 

2,882

 

Add: Loss on early extinguishment of debt, net

 

 

 

 

154

 

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

(962

)

 

 

 

1,550

 

Subtract: Fair value increase of private equity investments

 

 

 

 

(260

)

Add/subtract: Tax effect of adjustments (1)

164

 

 

(105

)

 

(1,122

)

Adjusted net income

$

186,051

 

 

$

187,260

 

 

$

139,655

 

Net income annualized

$

741,002

 

 

$

746,846

 

 

$

364,305

 

Adjusted net income annualized

$

738,137

 

 

$

751,098

 

 

$

555,584

 

Total average assets

$

55,326,260

 

 

$

55,017,771

 

 

$

53,138,334

 

Return on average assets

1.34

%

 

1.36

%

 

0.69

%

Adjusted return on average assets

1.33

 

 

1.37

 

 

1.05

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

Net income available to common shareholders

$

178,482

 

 

$

177,909

 

 

$

83,283

 

Subtract/add: Earnout liability adjustment

(243

)

 

750

 

 

 

Add: Goodwill Impairment

 

 

 

 

44,877

 

Add: Restructuring charges

319

 

 

415

 

 

2,882

 

Add: Loss on early extinguishment of debt, net

 

 

 

 

154

 

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

(962

)

 

 

 

1,550

 

Subtract: Fair value increase of private equity investments

 

 

 

 

(260

)

Add/subtract: Tax effect of adjustments (1)

164

 

 

(105

)

 

(1,122

)

Adjusted net income available to common shareholders

$

177,760

 

 

$

178,969

 

 

$

131,364

 

Weighted average common shares outstanding, diluted

147,701

 

 

149,747

 

 

147,976

 

Diluted earnings per share

$

1.21

 

 

$

1.19

 

 

$

0.56

 

Adjusted diluted earnings per share

1.20

 

 

1.20

 

 

0.89

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

3Q21

 

2Q21

 

3Q20

 

 

 

 

 

 

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

$

178,482

 

 

$

177,909

 

 

$

83,283

 

Subtract/add: Earnout liability adjustment

(243

)

 

750

 

 

 

Add: Goodwill impairment

 

 

 

 

44,877

 

Add: Restructuring charges

319

 

 

415

 

 

2,882

 

Add: Loss on early extinguishment of debt, net

 

 

 

 

154

 

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

(962

)

 

 

 

1,550

 

Subtract: Fair value increase of private equity investments

 

 

 

 

(260

)

Add/subtract: Tax effect of adjustments (1)

164

 

 

(105

)

 

(1,122

)

Adjusted net income available to common shareholders

$

177,760

 

 

$

178,969

 

 

$

131,364

 

 

 

 

 

 

 

Adjusted net income available to common shareholders annualized

$

705,243

 

 

$

717,843

 

 

$

522,600

 

Add: Amortization of intangibles, annualized net of tax

7,050

 

 

7,128

 

 

7,782

 

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

$

712,293

 

 

$

724,971

 

 

$

530,382

 

 

 

 

 

 

 

Net income available to common shareholders annualized

$

708,108

 

 

$

713,591

 

 

$

331,322

 

Add: Amortization of intangibles, annualized net of tax

7,050

 

 

7,128

 

 

7,782

 

Net income available to common shareholders excluding amortization of intangibles annualized

$

715,158

 

 

$

720,719

 

 

$

339,104

 

 

 

 

 

 

 

Total average shareholders' equity less preferred stock

$

4,734,754

 

 

$

4,632,568

 

 

$

4,553,159

 

Subtract: Goodwill

(452,390

)

 

(452,390

)

 

(497,267

)

Subtract: Other intangible assets, net

(39,109

)

 

(41,399

)

 

(49,075

)

Total average tangible shareholders' equity less preferred stock

$

4,243,255

 

 

$

4,138,779

 

 

$

4,006,817

 

Return on average common equity

14.96

%

 

15.40

%

 

7.28

%

Adjusted return on average common equity

14.90

 

 

15.50

 

 

11.48

 

Return on average tangible common equity

16.85

 

 

17.41

 

 

8.46

 

Adjusted return on average tangible common equity

16.79

 

 

17.52

 

 

13.24

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

September 30,
2021

 

June 30,
2021

 

September 30,
2020

 

 

 

 

 

 

Tangible common equity ratio

 

 

 

 

 

Total assets

$

55,509,129

 

 

$

54,938,659

 

 

$

53,040,538

 

Subtract: Goodwill

(452,390

)

 

(452,390

)

 

(452,390

)

Subtract: Other intangible assets, net

(37,975

)

 

(40,354

)

 

(47,752

)

Tangible assets

$

55,018,764

 

 

$

54,445,915

 

 

$

52,540,396

 

 

 

 

 

 

 

Total shareholders’ equity

$

5,252,802

 

 

$

5,237,714

 

 

$

5,064,542

 

Subtract: Goodwill

(452,390

)

 

(452,390

)

 

(452,390

)

Subtract: Other intangible assets, net

(37,975

)

 

(40,354

)

 

(47,752

)

Subtract: Preferred Stock, no par value

(537,145

)

 

(537,145

)

 

(537,145

)

Tangible common equity

$

4,225,292

 

 

$

4,207,825

 

 

$

4,027,255

 

Total shareholders’ equity to total assets ratio

9.46

%

 

9.53

%

 

9.55

%

Tangible common equity ratio

7.68

 

 

7.73

 

 

7.67

 

 

 

 

 

 

 

(1) An assumed marginal tax rate of 25.3% for 2021 and 25.9% for 2020 was applied.

INCOME STATEMENT DATA

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

Nine Months Ended

 

2021

 

2020

 

'21 vs '20

 

 

 

% Change

 

 

 

 

 

 

Interest income

$

1,235,064

 

 

$

1,371,016

 

 

(10

)%

Interest expense

94,430

 

 

244,200

 

 

(61

)

 

 

 

 

 

 

Net interest income

1,140,634

 

 

1,126,816

 

 

1

 

(Reversal of) provision for credit losses

(51,041

)

 

343,956

 

 

nm

 

 

 

 

 

 

 

Net interest income after provision for credit losses

1,191,675

 

 

782,860

 

 

52

 

 

 

 

 

 

 

Non-interest revenue:

 

 

 

 

 

Service charges on deposit accounts

64,089

 

 

54,069

 

 

19

 

Fiduciary and asset management fees

56,545

 

 

46,009

 

 

23

 

Card fees

38,538

 

 

30,959

 

 

24

 

Brokerage revenue

41,644

 

 

32,987

 

 

26

 

Mortgage banking income

47,312

 

 

66,987

 

 

(29

)

Capital markets income

18,929

 

 

22,984

 

 

(18

)

Income from bank-owned life insurance

22,851

 

 

21,572

 

 

6

 

Investment securities (losses) gains, net

(1,028

)

 

76,594

 

 

nm

 

Other non-interest revenue

44,117

 

 

39,591

 

 

11

 

 

 

 

 

 

 

Total non-interest revenue

332,997

 

 

391,752

 

 

(15

)

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

Salaries and other personnel expense

482,408

 

 

464,268

 

 

4

 

Net occupancy, equipment, and software expense

126,442

 

 

125,475

 

 

1

 

Third-party processing and other services

63,897

 

 

67,193

 

 

(5

)

Professional fees

23,771

 

 

39,358

 

 

(40

)

FDIC insurance and other regulatory fees

16,338

 

 

18,922

 

 

(14

)

Other operating expenses

91,841

 

 

161,860

 

 

(43

)

 

 

 

 

 

 

Total non-interest expense

804,697

 

 

877,076

 

 

(8

)

 

 

 

 

 

 

Income before income taxes

719,975

 

 

297,536

 

 

142

 

Income tax expense

159,910

 

 

74,250

 

 

115

 

 

 

 

 

 

 

Net income

560,065

 

 

223,286

 

 

151

 

 

 

 

 

 

 

Less: Preferred stock dividends

24,872

 

 

24,872

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

$

535,193

 

 

$

198,414

 

 

170

%

 

 

 

 

 

 

Net income per common share, basic

$

3.63

 

 

$

1.35

 

 

169

%

 

 

 

 

 

 

Net income per common share, diluted

3.59

 

 

1.34

 

 

168

 

 

 

 

 

 

 

Cash dividends declared per common share

0.99

 

 

0.99

 

 

 

 

 

 

 

 

 

Return on average assets *

1.37

%

 

0.58

%

 

79

bps

Return on average common equity *

15.37

 

 

5.87

 

950

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

147,622

 

 

147,304

 

 

0

%

Weighted average common shares outstanding, diluted

149,069

 

 

148,037

 

 

1

 

 

 

 

 

 

 

nm - not meaningful

 

 

 

 

 

bps - basis points

 

 

 

 

 

* - ratios are annualized

 

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT DATA

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

2021

 

2020

 

Third Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

Third
Quarter

 

Second
Quarter

 

First
Quarter

 

Fourth
Quarter

 

Third
Quarter

 

'21 vs '20

 

 

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

412,504

 

 

412,743

 

 

409,817

 

 

433,479

 

435,550

 

 

(5

)%

Interest expense

27,587

 

 

30,883

 

 

35,960

 

 

47,547

 

 

58,560

 

 

(53

)

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

384,917

 

 

381,860

 

 

373,857

 

 

385,932

 

 

376,990

 

 

2

 

(Reversal of) provision for credit losses

(7,868

)

 

(24,598

)

 

(18,575

)

 

11,066

 

 

43,383

 

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for credit losses

392,785

 

 

406,458

 

 

392,432

 

 

374,866

 

 

333,607

 

 

18

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest revenue:

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

22,641

 

 

21,414

 

 

20,033

 

 

19,063

 

 

17,813

 

 

27

 

Fiduciary and asset management fees

19,786

 

 

18,805

 

 

17,954

 

 

17,242

 

 

15,885

 

 

25

 

Card fees

13,238

 

 

13,304

 

 

11,996

 

 

11,743

 

 

10,823

 

 

22

 

Brokerage revenue

14,745

 

 

13,926

 

 

12,974

 

 

11,794

 

 

10,604

 

 

39

 

Mortgage banking income

11,155

 

 

13,842

 

 

22,315

 

 

24,426

 

 

31,229

 

 

(64

)

Capital markets income

8,089

 

 

3,335

 

 

7,505

 

 

4,352

 

 

5,690

 

 

42

 

Income from bank-owned life insurance

6,820

 

 

7,188

 

 

8,843

 

 

9,725

 

 

7,778

 

 

(12

)

Investment securities gains (losses), net

962

 

 

 

 

(1,990

)

 

2,337

 

 

(1,550

)

 

nm

 

Other non-interest revenue

17,519

 

 

15,273

 

 

11,326

 

 

14,079

 

 

16,139

 

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest revenue

114,955

 

 

107,087

 

 

110,956

 

 

114,761

 

 

114,411

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

Salaries and other personnel expense

160,364

 

 

160,567

 

 

161,477

 

 

153,946

 

 

154,994

 

 

3

 

Net occupancy, equipment, and software expense

43,483

 

 

41,825

 

 

41,134

 

 

44,183

 

 

41,554

 

 

5

 

Third-party processing and other services

19,446

 

 

24,419

 

 

20,032

 

 

20,799

 

 

21,827

 

 

(11

)

Professional fees

6,739

 

 

7,947

 

 

9,084

 

 

17,541

 

 

13,377

 

 

(50

)

FDIC insurance and other regulatory fees

5,212

 

 

5,547

 

 

5,579

 

 

6,288

 

 

6,793

 

 

(23

)

Other operating expenses

31,788

 

 

30,226

 

 

29,828

 

 

59,741

 

 

78,110

 

 

(59

)

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest expense

267,032

 

 

270,531

 

 

267,134

 

 

302,498

 

 

316,655

 

 

(16

)

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

240,708

 

 

243,014

 

 

236,254

 

 

187,129

 

 

131,363

 

 

83

 

Income tax expense

53,935

 

 

56,814

 

 

49,161

 

 

36,720

 

 

39,789

 

 

36

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

186,773

 

 

186,200

 

 

187,093

 

 

150,409

 

 

91,574

 

 

104

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Preferred stock dividends

8,291

 

 

8,291

 

 

8,291

 

 

8,291

 

 

8,291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

$

178,482

 

 

177,909

 

 

178,802

 

 

142,118

 

 

83,283

 

 

114

%

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, basic

$

1.22

 

 

1.20

 

 

1.20

 

 

0.96

 

 

0.57

 

 

114

%

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, diluted

1.21

 

 

1.19

 

 

1.19

 

 

0.96

 

 

0.56

 

 

116

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

0.33

 

 

0.33

 

 

0.33

 

 

0.33

 

 

0.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets *

1.34

%

 

1.36

 

 

1.40

 

 

1.11

 

 

0.69

 

 

65

bps

Return on average common equity *

14.96

 

 

15.40

 

 

15.77

 

 

12.31

 

 

7.28

 

 

768

 

 

 

 

 

 

 

 

0.31

 

 

 

 

 

Weighted average common shares outstanding, basic

146,308

 

 

148,113

 

 

148,467

 

 

147,744

 

 

147,314

 

 

(1

)%

Weighted average common shares outstanding, diluted

147,701

 

 

149,747

 

 

149,780

 

 

148,725

 

 

147,976

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

nm - not meaningful

 

 

 

 

 

 

 

 

 

 

 

bps - basis points

 

 

 

 

 

 

 

 

 

 

 

* - ratios are annualized

 

 

 

 

 

 

 

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET DATA

 

September 30,
2021

 

December 31,
2020

 

September 30,
2020

(Unaudited)

 

 

 

 

 

 

(In thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Cash and due from banks

 

$

483,035

 

 

$

531,579

 

 

$

578,026

 

Interest-bearing funds with Federal Reserve Bank

 

2,103,497

 

 

3,586,565

 

 

1,266,313

 

Interest earning deposits with banks

 

23,261

 

 

20,944

 

 

20,929

 

Federal funds sold and securities purchased under resale agreements

 

77,627

 

 

113,829

 

 

120,095

 

Cash, cash equivalents, and restricted cash

 

2,687,420

 

 

4,252,917

 

 

1,985,363

 

 

 

 

 

 

 

 

Investment securities available for sale, at fair value

 

10,481,071

 

 

7,962,438

 

 

7,566,525

 

Loans held for sale ($152,258, $216,647, and $285,899 measured at fair value, respectively)

 

550,948

 

 

760,123

 

 

745,160

 

 

 

 

 

 

 

 

Loans, net of deferred fees and costs

 

38,341,030

 

 

38,252,984

 

 

39,549,847

 

Allowance for loan losses

 

(492,243

)

 

(605,736

)

 

(603,800

)

Loans, net

 

37,848,787

 

 

37,647,248

 

 

38,946,047

 

 

 

 

 

 

 

 

Cash surrender value of bank-owned life insurance

 

1,065,256

 

 

1,049,373

 

 

1,044,046

 

Premises, equipment, and software, net

 

441,605

 

 

463,959

 

 

471,208

 

Goodwill

 

452,390

 

 

452,390

 

 

452,390

 

Other intangible assets, net

 

37,975

 

 

45,112

 

 

47,752

 

Other assets

 

1,943,677

 

 

1,760,599

 

 

1,782,047

 

Total assets

 

$

55,509,129

 

 

$

54,394,159

 

 

$

53,040,538

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Non-interest-bearing deposits

 

$

15,787,882

 

 

$

13,477,854

 

 

$

13,075,081

 

Interest-bearing deposits

 

31,900,537

 

 

33,213,717

 

 

31,590,823

 

 

 

 

 

 

 

 

Total deposits

 

47,688,419

 

 

46,691,571

 

 

44,665,904

 

 

 

 

 

 

 

 

Federal funds purchased and securities sold under repurchase agreements

 

262,548

 

 

227,922

 

 

202,344

 

Other short-term borrowings

 

 

 

7,717

 

 

400,000

 

Long-term debt

 

1,203,761

 

 

1,202,494

 

 

1,628,385

 

Other liabilities

 

1,101,599

 

 

1,103,121

 

 

1,079,363

 

Total liabilities

 

50,256,327

 

 

49,232,825

 

 

47,975,996

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

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

 

537,145

 

 

537,145

 

 

537,145

 

Common stock - $1.00 par value. Authorized 342,857,143 shares; issued 169,170,589, 168,132,522, and 167,410,950; outstanding 145,483,994, 148,039,495, and 147,317,923

 

169,171

 

 

168,133

 

 

167,411

 

Additional paid-in capital

 

3,883,289

 

 

3,851,208

 

 

3,832,142

 

Treasury stock, at cost – 23,686,595, 20,093,027, and 20,093,027 shares

 

(898,707

)

 

(731,806

)

 

(731,806

)

Accumulated other comprehensive (loss) income, net

 

(5,462

)

 

158,635

 

 

174,914

 

Retained earnings

 

1,567,366

 

 

1,178,019

 

 

1,084,736

 

Total shareholders’ equity

 

5,252,802

 

 

5,161,334

 

 

5,064,542

 

Total liabilities and shareholders' equity

 

$

55,509,129

 

 

$

54,394,159

 

 

$

53,040,538

 

Synovus

 

 

 

 

 

 

 

AVERAGE BALANCES AND YIELDS/RATES (1)

 

 

 

 

 

 

 

(Unaudited)

 

2021

 

2020

(Dollars in thousands)

 

 

 

 

Third

Second

First

 

Fourth

Third

 

 

Quarter

Quarter

Quarter

 

Quarter

Quarter

Interest Earning Assets

 

 

 

 

 

 

 

Investment securities (2) (4)

 

$

9,876,651

 

9,184,691

 

8,437,563

 

 

7,493,822

 

7,227,400

 

Yield

 

1.45

%

1.45

 

1.40

 

 

2.07

 

2.39

 

Trading account assets (5)

 

$

5,192

 

2,831

 

3,063

 

 

8,496

 

5,391

 

Yield

 

1.15

%

1.15

 

2.81

 

 

1.03

 

1.69

 

Commercial loans (3) (4)

 

$

28,891,164

 

29,849,029

 

29,844,491

 

 

30,363,102

 

30,730,135

 

Yield

 

3.91

%

3.86

 

3.95

 

 

3.96

 

3.80

 

Consumer loans (3)

 

$

8,642,969

 

8,647,448

 

8,367,776

 

 

8,521,449

 

9,032,437

 

Yield

 

3.93

%

3.94

 

3.98

 

 

4.00

 

4.08

 

Allowance for loan losses

 

$

(514,828

)

(561,242

)

(599,872

)

 

(595,547

)

(591,098

)

Loans, net (3)

 

$

37,019,305

 

37,935,235

 

37,612,395

 

 

38,289,004

 

39,171,474

 

Yield

 

3.97

%

3.93

 

4.02

 

 

4.03

 

3.92

 

Mortgage loans held for sale

 

$

196,032

 

242,940

 

246,962

 

 

309,278

 

244,952

 

Yield

 

2.88

%

3.06

 

2.68

 

 

2.74

 

2.92

 

Other loans held for sale

 

$

527,736

 

615,301

 

660,753

 

 

544,301

 

493,940

 

Yield

 

3.06

%

3.05

 

2.91

 

 

2.81

 

3.61

 

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

 

$

3,271,501

 

2,705,819

 

2,838,063

 

 

2,716,645

 

1,265,880

 

Yield

 

0.15

%

0.11

 

0.10

 

 

0.10

 

0.11

 

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

 

$

159,741

 

159,340

 

157,657

 

 

162,537

 

200,923

 

Yield

 

1.26

%

2.01

 

1.69

 

 

2.64

 

2.73

 

Total interest earning assets

 

$

51,056,158

 

50,846,157

 

49,956,456

 

 

49,524,083

 

48,609,960

 

Yield

 

3.22

%

3.26

 

3.32

 

 

3.49

 

3.58

 

Interest-Bearing Liabilities

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

8,463,325

 

8,601,262

 

8,570,753

 

 

8,531,415

 

7,789,095

 

Rate

 

0.10

%

0.11

 

0.14

 

 

0.16

 

0.19

 

Money Market accounts

 

$

15,597,723

 

15,476,262

 

15,348,916

 

 

14,411,860

 

13,272,972

 

Rate

 

0.15

%

0.19

 

0.23

 

 

0.26

 

0.36

 

Savings deposits

 

$

1,377,089

 

1,333,297

 

1,219,288

 

 

1,147,667

 

1,114,956

 

Rate

 

0.02

%

0.02

 

0.02

 

 

0.01

 

0.02

 

Time deposits under $100,000

 

$

993,284

 

1,077,931

 

1,161,306

 

 

1,239,592

 

1,379,923

 

Rate

 

0.33

%

0.41

 

0.56

 

 

0.74

 

1.03

 

Time deposits over $100,000

 

$

2,430,744

 

2,714,451

 

2,993,996

 

 

3,302,959

 

3,863,821

 

Rate

 

0.45

%

0.56

 

0.74

 

 

1.03

 

1.44

 

Other brokered deposits

 

$

1,862,346

 

1,901,097

 

1,950,582

 

 

1,978,393

 

1,912,114

 

Rate

 

0.21

%

0.19

 

0.20

 

 

0.23

 

0.23

 

Brokered time deposits

 

$

996,777

 

1,156,510

 

1,418,751

 

 

1,795,982

 

2,232,940

 

Rate

 

1.27

%

1.35

 

1.50

 

 

1.60

 

1.59

 

Total interest-bearing deposits

 

$

31,721,288

 

32,260,810

 

32,663,592

 

 

32,407,868

 

31,565,821

 

Rate

 

0.20

%

0.24

 

0.31

 

 

0.39

 

0.54

 

Federal funds purchased and securities sold under repurchase agreements

 

$

202,525

 

204,053

 

209,448

 

 

174,316

 

180,342

 

Rate

 

0.07

%

0.07

 

0.07

 

 

0.07

 

0.09

 

Other short-term borrowings

 

$

 

 

 

 

 

46,739

 

Rate

 

%

 

 

 

 

1.12

 

Long-term debt

 

$

1,203,500

 

1,203,038

 

1,202,613

 

 

1,552,791

 

2,234,665

 

Rate

 

3.81

%

3.82

 

3.63

 

 

3.96

 

2.71

 

Total interest-bearing liabilities

 

$

33,127,313

 

33,667,901

 

34,075,653

 

 

34,134,975

 

34,027,567

 

Rate

 

0.33

%

0.36

 

0.42

 

 

0.55

 

0.68

 

Non-interest-bearing demand deposits

 

$

15,755,929

 

15,088,836

 

13,791,286

 

 

13,566,112

 

12,773,676

 

Cost of funds

 

0.22

%

0.25

 

0.30

 

 

0.40

 

0.50

 

Effective cost of funds(6)

 

0.21

%

0.24

 

0.28

 

 

0.37

 

0.48

 

Net interest margin

 

3.01

%

3.02

 

3.04

 

 

3.12

 

3.10

 

Taxable equivalent adjustment (4)

 

$

736

 

791

 

774

 

 

821

 

956

 

(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.

(6) Includes the impact of non-interest-bearing capital funding sources.

Synovus

 

 

 

 

 

 

 

 

 

 

LOANS OUTSTANDING BY TYPE

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

Total Loans

 

Total Loans

 

Linked Quarter

 

Total Loans

 

Year/Year

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

Loan Type

 

September 30, 2021

 

June 30, 2021

 

% Change

 

September 30, 2020

 

% Change

Commercial, Financial, and Agricultural

 

$

11,771,037

 

$

12,085,534

 

(3

)%

 

$

12,931,095

 

(9

)%

Owner-Occupied

 

7,163,751

 

7,064,599

 

1

 

 

7,192,543

 

 

Total Commercial & Industrial

 

18,934,788

 

19,150,133

 

(1

)

 

20,123,638

 

(6

)

Multi-Family

 

2,197,139

 

2,086,641

 

5

 

 

2,359,112

 

(7

)

Hotels

 

1,441,414

 

1,411,443

 

2

 

 

1,407,238

 

2

 

Office Buildings

 

2,341,316

 

2,340,378

 

 

 

2,260,240

 

4

 

Shopping Centers

 

1,570,020

 

1,645,275

 

(5

)

 

1,736,210

 

(10

)

Warehouses

 

687,496

 

657,699

 

5

 

 

728,446

 

(6

)

Other Investment Property

 

1,211,078

 

1,076,577

 

12

 

 

942,962

 

28

 

Total Investment Properties

 

9,448,463

 

9,218,013

 

2

 

 

9,434,208

 

 

1-4 Family Construction

 

191,906

 

174,009

 

10

 

 

180,277

 

6

 

1-4 Family Investment Mortgage

 

421,968

 

462,335

 

(9

)

 

474,473

 

(11

)

Total 1-4 Family Properties

 

613,874

 

636,344

 

(4

)

 

654,750

 

(6

)

Commercial Development

 

103,512

 

120,683

 

(14

)

 

111,403

 

(7

)

Residential Development

 

186,033

 

164,950

 

13

 

 

259,617

 

(28

)

Land Acquisition

 

188,378

 

221,061

 

(15

)

 

276,085

 

(32

)

Land and Development

 

477,923

 

506,694

 

(6

)

 

647,105

 

(26

)

Total Commercial Real Estate

 

10,540,260

 

10,361,051

 

2

 

 

10,736,063

 

(2

)

Consumer Mortgages

 

5,108,499

 

5,200,762

 

(2

)

 

5,664,686

 

(10

)

Home Equity Lines

 

1,308,254

 

1,358,211

 

(4

)

 

1,629,482

 

(20

)

Credit Cards

 

293,026

 

285,508

 

3

 

 

264,829

 

11

 

Other Consumer Loans

 

2,156,203

 

1,880,353

 

15

 

 

1,131,149

 

91

 

Total Consumer

 

8,865,982

 

8,724,834

 

2

 

 

8,690,146

 

2

 

Total

 

$

38,341,030

 

$

38,236,018

 

%

 

$

39,549,847

 

(3

)%

 

 

 

 

 

 

 

 

 

 

 

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

 

September 30, 2021

 

June 30, 2021

 

% Change

 

September 30, 2020

 

% Change

Commercial, Financial, and Agricultural

 

$

77,349

 

$

70,943

 

9

%

 

$

95,365

 

(19

)%

Owner-Occupied

 

13,134

 

13,155

 

 

 

20,261

 

(35

)

Total Commercial & Industrial

 

90,483

 

84,098

 

8

 

 

115,626

 

(22

)

Multi-Family

 

2,396

 

2,407

 

 

 

157

 

nm

 

Office Buildings

 

2,488

 

1,618

 

54

 

 

27,608

 

(91

)

Shopping Centers

 

932

 

124

 

652

 

 

257

 

263

 

Warehouses

 

302

 

218

 

39

 

 

 

nm

 

Other Investment Property

 

624

 

407

 

53

 

 

238

 

162

 

Total Investment Properties

 

6,742

 

4,774

 

41

 

 

28,260

 

(76

)

1-4 Family Construction

 

522

 

548

 

(5

)

 

1,556

 

(66

)

1-4 Family Investment Mortgage

 

2,364

 

1,927

 

23

 

 

1,815

 

30

 

Total 1-4 Family Properties

 

2,886

 

2,475

 

17

 

 

3,371

 

(14

)

Commercial Development

 

463

 

560

 

(17

)

 

833

 

(44

)

Residential Development

 

449

 

451

 

 

 

648

 

(31

)

Land Acquisition

 

1,024

 

1,029

 

 

 

910

 

13

 

Land and Development

 

1,936

 

2,040

 

(5

)

 

2,391

 

(19

)

Total Commercial Real Estate

 

11,564

 

9,289

 

24

 

 

34,022

 

(66

)

Consumer Mortgages

 

37,541

 

51,376

 

(27

)

 

7,433

 

405

 

Home Equity Lines

 

8,688

 

8,938

 

(3

)

 

10,297

 

(16

)

Other Consumer Loans

 

7,189

 

7,327

 

(2

)

 

1,459

 

393

 

Total Consumer

 

53,418

 

67,641

 

(21

)

 

19,189

 

178

 

Total

 

$

155,465

 

$

161,028

 

(3

)%

 

$

168,837

 

(8

)%

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY DATA

 

 

(Unaudited)

 

 

 

 

 

 

 

 

(Dollars in thousands)

2021

 

2020

 

Third
Quarter

 

 

Third

 

Second

 

First

 

Fourth

 

Third

 

'21 vs '20

 

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Loans (NPLs)

 

$

155,465

 

 

161,028

 

155,169

 

151,079

 

168,837

 

(8

)%

Impaired Loans Held for Sale

 

 

 

 

23,590

 

23,590

 

 

nm

 

Other Real Estate and Other Assets

 

16,883

 

 

16,806

 

16,849

 

17,394

 

23,280

 

(27

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Assets (NPAs)

 

172,348

 

 

177,834

 

195,608

 

192,063

 

192,117

 

(10

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses (ALL)

 

492,243

 

 

516,708

 

563,214

 

605,736

 

603,800

 

(18

)

Reserve for Unfunded Commitments

 

42,971

 

 

46,890

 

51,528

 

47,785

 

60,794

 

(29

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses (ACL)

 

535,214

 

 

563,598

 

614,742

 

653,521

 

664,594

 

(19

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Charge-Offs - Quarter

 

20,516

 

 

26,547

 

20,204

 

22,139

 

28,466

 

 

Net Charge-Offs - YTD

 

67,266

 

 

46,750

 

20,204

 

94,712

 

72,573

 

 

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

 

0.22

%

 

0.28

 

0.21

 

0.23

 

0.29

 

 

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

 

0.24

 

 

0.24

 

0.21

 

0.24

 

0.25

 

 

NPLs / Loans

 

0.41

 

 

0.42

 

0.40

 

0.39

 

0.43

 

 

NPAs / Loans, ORE and specific other assets

 

0.45

 

 

0.46

 

0.50

 

0.50

 

0.49

 

 

ACL/Loans

 

1.40

 

 

1.47

 

1.58

 

1.71

 

1.68

 

 

ALL/Loans

 

1.28

 

 

1.35

 

1.45

 

1.58

 

1.53

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACL/NPLs

 

344.27

 

 

350.00

 

396.18

 

432.57

 

393.63

 

 

ALL/NPLs

 

316.63

 

 

320.88

 

362.97

 

400.94

 

357.62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past Due Loans over 90 days and Still Accruing

 

$

5,960

 

 

4,415

 

3,804

 

4,117

 

7,512

 

(21

)

As a Percentage of Loans Outstanding

 

0.02

%

 

0.01

 

0.01

 

0.01

 

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Past Due Loans and Still Accruing

 

$

60,817

 

 

49,321

 

45,693

 

47,349

 

57,316

 

6

 

As a Percentage of Loans Outstanding

 

0.16

%

 

0.13

 

0.12

 

0.12

 

0.14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing Troubled Debt Restructurings (TDRs)

 

$

126,055

 

 

124,528

 

129,776

 

134,972

 

163,511

 

(23

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Ratio is annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED CAPITAL INFORMATION (1)

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,
2021

 

December 31,
2020

 

September 30,
2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital

 

$

4,836,672

 

 

4,572,010

 

4,450,547

 

 

 

 

 

 

Total Risk-Based Capital

 

5,788,290

 

 

5,604,230

 

5,536,918

 

 

 

 

 

 

Common Equity Tier 1 Capital Ratio

 

9.63

%

 

9.66

 

9.30

 

 

 

 

 

 

Tier 1 Capital Ratio

 

10.83

 

 

10.95

 

10.57

 

 

 

 

 

 

Total Risk-Based Capital Ratio

 

12.96

 

 

13.42

 

13.16

 

 

 

 

 

 

Tier 1 Leverage Ratio

 

8.82

 

 

8.50

 

8.48

 

 

 

 

 

 

Common Equity as a Percentage of Total Assets (2)

 

8.50

 

 

8.51

 

8.54

 

 

 

 

 

 

Tangible Common Equity Ratio (3) (5)

 

7.68

 

 

7.66

 

7.67

 

 

 

 

 

 

Book Value Per Common Share (4)

 

$

32.41

 

 

31.24

 

30.73

 

 

 

 

 

 

Tangible Book Value Per Common Share (3)

 

29.04

 

 

27.88

 

27.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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
Alison Dowe
Media Relations
(706) 641-3781

Investor Contact
Kevin Brown
Investor Relations
(706) 641-6500

Source: Synovus Financial Corp.