SNV
$37.83
Synovus Financial
$1.15
3.14%
Earnings Details
4th Quarter December 2020
Tuesday, January 26, 2021 6:30:00 AM
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Summary

Synovus Financial Beats

Synovus Financial (SNV) reported 4th Quarter December 2020 earnings of $1.08 per share on revenue of $548.2 million. The consensus earnings estimate was $0.82 per share on revenue of $482.0 million. The Earnings Whisper number was $0.91 per share. Revenue fell 9.3% 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
$1.08
Earnings Whisper
$0.91
Consensus Estimate
$0.82
Reported Revenue
$548.2 Mil
Revenue Estimate
$482.0 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Synovus Announces Earnings for the Fourth Quarter 2020

Diluted Earnings per Share of $0.96 vs. $0.56 in 3Q20

Adjusted Diluted Earnings per Share of $1.08 vs. $0.89 in 3Q20

COLUMBUS, Ga.--(BUSINESS WIRE)--Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter and year ended December 31, 2020.

2020 Highlights

  • Net income available to common shareholders for 2020 was $340.5 million or $2.30 per diluted share as compared to $540.9 million or $3.47 per diluted share for 2019.
    • Adjusted earnings per diluted share for 2020 were $2.41 as compared to $3.90 for 2019, a decrease of 38%.
  • CET1 ratio increased 72 basis points to 9.67%; total risk-based capital ratio of 13.43% the highest since 2014.
  • Allowance for Credit Losses (ACL) increased $370.7 million or 105 basis points (to loans) to 1.81% year-over-year, excluding Paycheck Protection Program (PPP) loans.
    • Includes increase of $110.4 million or 30 basis points from the adoption of Current Expected Credit Losses on January 1, 2020.
  • Processed and approved nearly $2.9 billion in PPP loans, supporting approximately 19,000 customers.
  • Announced Synovus Forward in January, a plan expected to add $100 million pre-tax benefit with a combination of revenue and expense initiatives.
  • In December, a CEO transition plan was announced, and Kevin Blair was named to the Board. In April 2021, Chairman and CEO Kessel Stelling will move into the role of Executive Chairman and Kevin Blair will become CEO.

Fourth Quarter 2020 Highlights

  • Net income available to common shareholders was $142.1 million or $0.96 per diluted share as compared to $83.3 million or $0.56 in the prior quarter.
    • Adjusted earnings per diluted share of $1.08, up 22% sequentially and 15% year-over-year.
  • Period-end loan decline of $1.30 billion or 3% sequentially.
    • Loans declined by $700 million or 2% from the third quarter, excluding PPP forgiveness of $540 million or $516 million, net of unearned fees, and lending partnership balance reductions of $81 million.
  • Period-end deposit growth of $2.03 billion or 5% from the third quarter.
    • Core transaction deposits (non-interest bearing, NOW/savings, and money market deposits excluding public and brokered funds) increased $1.77 billion or 6% sequentially.
    • Total deposit costs of 28 basis points declined 11 basis points from the third quarter.
  • Net interest income of $385.9 million increased $8.9 million or 2% sequentially.
  • Non-interest revenue of $114.8 million stable with the prior quarter and increased $16.8 million year-over-year.
  • Non-interest expense of $302.5 million, a decrease of $14.2 million from the third quarter and an increase of $36.4 million from the prior-year quarter.
    • Adjusted non-interest expense of $275.1 million increased $6.4 million sequentially, primarily due to a $4.5 million increase in expenses related to Synovus Forward, PPP, and COVID.
  • Credit quality metrics remained relatively stable, with a non-performing loan ratio of 0.39% and non-performing asset ratio of 0.50%; net charge-off ratio of 0.23%.

Fourth Quarter Summary

 

Reported

 

Adjusted*

(dollars in thousands)

4Q20

 

3Q20

 

4Q19

 

4Q20

 

3Q20

 

4Q19

Net income available to common shareholders

$

142,118

 

 

$

83,283

 

 

$

143,393

 

 

$

160,618

 

 

$

131,364

 

 

$

140,069

 

Diluted earnings per share

0.96

 

 

0.56

 

 

0.97

 

 

1.08

 

 

0.89

 

 

0.94

 

Total loans

38,252,984

 

 

39,549,847

 

 

37,162,450

 

 

N/A

 

N/A

 

N/A

Total deposits

46,691,571

 

 

44,665,904

 

 

38,405,504

 

 

N/A

 

N/A

 

N/A

Total FTE revenues

501,514

 

 

492,357

 

 

497,992

 

 

499,114

 

 

493,647

 

 

492,049

 

Return on avg assets

1.11

%

 

0.69

%

 

1.27

%

 

1.25

%

 

1.05

%

 

1.24

%

Return on avg common equity

12.31

 

 

7.28

 

 

13.08

 

 

13.91

 

 

11.48

 

 

12.78

 

Return on avg tangible common equity

14.00

 

 

8.46

 

 

15.18

 

 

15.79

 

 

13.24

 

 

14.84

 

Net interest margin**

3.12

 

 

3.10

 

 

3.65

 

 

3.10

 

 

3.08

 

 

3.40

 

Efficiency ratio

60.32

 

 

64.31

 

 

53.44

 

 

54.60

 

 

53.91

 

 

53.20

 

Net charge-off ratio

0.23

 

 

0.29

 

 

0.10

 

 

N/A

 

N/A

 

N/A

NPA ratio

0.50

 

 

0.49

 

 

0.37

 

 

N/A

 

N/A

 

N/A

 

* Non-GAAP measures; see applicable reconciliation

** Adjusted net interest margin excludes purchase accounting adjustments primarily comprised of loan accretion and deposit premium amortization

“In a year marked by extraordinary volatility, we drew on the strength of our relationship-centered model to support our team members, customers, and communities,” said Kessel Stelling, Synovus chairman and CEO. “During 2020, we delivered approximately 19,000 PPP loans totaling $2.9 billion to small business customers throughout the Southeast and grew core transaction deposits $8.6 billion. We also accelerated investments in several technology initiatives that provided more convenience and a better digital experience as customers adapted to this highly virtual environment. And at year end, our higher capital levels, improved liquidity, and strong credit quality further demonstrated the strength and resiliency of our balance sheet in a challenging environment. In the year ahead, we expect our Synovus Forward initiatives to produce additional revenue opportunities, expense savings, and efficiencies that will further strengthen our bank. We continue to move forward with purpose, meeting the very real needs of individuals and businesses, and remain committed to being a source of stability, unity, and value creation for all we serve.”

Balance Sheet

Loans*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

4Q20

 

3Q20

 

Linked
Quarter
Change

 

Linked
Quarter %
Change

 

4Q19

 

Year/Year
Change

 

Year/Year
% Change

Commercial & industrial

$

19,373.7

 

 

$

20,014.2

 

 

$

(640.5)

 

 

(3)

%

 

$

16,769.4

 

 

$

2,604.3

 

 

16

%

Commercial real estate

10,570.4

 

 

10,965.9

 

 

(395.4)

 

 

(4)

 

 

10,493.8

 

 

76.7

 

 

1

 

Consumer

8,386.5

 

 

8,668.8

 

 

(282.3)

 

 

(3)

 

 

9,924.7

 

 

(1,538.1)

 

 

(15)

 

Unearned income

(77.7)

 

 

(99.0)

 

 

21.3

 

 

(22)

 

 

(25.4)

 

 

(52.3)

 

 

206

 

Total loans

$

38,253.0

 

 

$

39,549.8

 

 

$

(1,296.9)

 

 

(3)

%

 

$

37,162.5

 

 

$

1,090.5

 

 

3

%

 

* Amounts may not total due to rounding

  • Total loans ended the quarter at $38.25 billion, down $1.30 billion or 3% sequentially.
  • Commercial and industrial (C&I) loans decreased $640.5 million or 3% from the prior quarter.
    • PPP forgiveness of $540 million, or $516 million, net of unearned fees, in the fourth quarter.
    • C&I line utilization remains near historic lows at 40%, down 6% year-over-year.
  • Consumer loans decreased by $282.3 million or 3% sequentially.
    • Strategic declines in lending partnership balances of $81 million.
  • Commercial real estate loans declined by $395.4 million or 4% from the prior quarter as pay-off and pay-down activity increased during the quarter.

Deposits*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

4Q20

 

3Q20

 

Linked
Quarter
Change

 

Linked
Quarter %
Change

 

4Q19

 

Year/Year
Change

 

Year/Year %
Change

Non-interest-bearing DDA

$

12,382.7

 

 

$

12,129.8

 

 

$

252.9

 

 

2

%

 

$

8,661.2

 

 

$

3,721.5

 

 

43

%

Interest-bearing DDA

5,674.4

 

 

5,291.1

 

 

383.3

 

 

7

 

 

4,769.5

 

 

904.9

 

 

19

 

Money market

13,541.2

 

 

12,441.3

 

 

1,099.9

 

 

9

 

 

9,827.4

 

 

3,713.9

 

 

38

 

Savings

1,156.2

 

 

1,126.0

 

 

30.3

 

 

3

 

 

909.5

 

 

246.7

 

 

27

 

Public funds

6,760.6

 

 

5,791.9

 

 

968.7

 

 

17

 

 

4,622.3

 

 

2,138.3

 

 

46

 

Time deposits

3,605.9

 

 

3,976.5

 

 

(370.5)

 

 

(9)

 

 

6,185.6

 

 

(2,579.7)

 

 

(42)

 

Brokered deposits

3,570.4

 

 

3,909.3

 

 

(338.9)

 

 

(9)

 

 

3,430.0

 

 

140.4

 

 

4

 

Total deposits

$

46,691.6

 

 

$

44,665.9

 

 

$

2,025.7

 

 

5

%

 

$

38,405.5

 

 

$

8,286.1

 

 

22

%

 

* Amounts may not total due to rounding

  • Total deposits ended the quarter at $46.69 billion up $2.03 billion or 5% sequentially.
    • Core transaction deposits increased $1.77 billion or 6% from the prior quarter.
    • Strong seasonal inflows supported a $968.7 million increase in public funds compared to the third quarter.
  • Total deposit costs declined 11 basis points from the third quarter to 28 basis points.

Income Statement Summary*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data)

4Q20

 

3Q20

 

Linked
Quarter
Change

 

Linked
Quarter %
Change

 

4Q19

 

Year/Year
Change

 

Year/Year %
Change

Net interest income

$

385,932

 

 

$

376,990

 

 

$

8,942

 

 

2

%

 

$

399,268

 

 

$

(13,336)

 

 

(3)

%

Non-interest revenue

114,761

 

 

114,411

 

 

350

 

 

 

97,955

 

 

16,806

 

 

17

 

Non-interest expense

302,498

 

 

316,655

 

 

(14,157)

 

 

(4)

 

 

266,121

 

 

36,377

 

 

14

 

Provision for credit losses

11,066

 

 

43,383

 

 

(32,317)

 

 

(74)

 

 

24,470

 

 

(13,404)

 

 

(55)

 

Income before taxes

$

187,129

 

 

$

131,363

 

 

$

55,766

 

 

42

 

$

206,632

 

 

$

(19,503)

 

 

(9)

Income tax expense

36,720

 

 

39,789

 

 

(3,069)

 

 

(8)

 

 

54,948

 

 

(18,228)

 

 

(33)

 

Preferred stock dividends

8,291

 

 

8,291

 

 

 

 

 

 

8,291

 

 

 

 

 

Net income available to common shareholders

$

142,118

 

 

$

83,283

 

 

$

58,835

 

 

71

%

 

$

143,393

 

 

$

(1,275)

 

 

(1)

%

Weighted average common shares outstanding, diluted

148,725

 

 

147,976

 

 

749

 

 

1

 

148,529

 

 

196

 

 

Diluted earnings per share

$

0.96

 

 

$

0.56

 

 

$

0.39

 

 

70

 

$

0.97

 

 

$

(0.01)

 

 

(1)

 

Adjusted diluted earnings per share**

$

1.08

 

 

$

0.89

 

 

$

0.19

 

 

22

 

$

0.94

 

 

$

0.14

 

 

15

 

 

* Amounts may not total due to rounding

** Non-GAAP measure; see applicable reconciliation

Core Performance

  • Total FTE revenues were $501.5 million in the fourth quarter up $9.2 million sequentially.
  • Net interest income increased $8.9 million or 2% compared to the prior quarter, primarily due to PPP fee accretion of $24.8 million up $12.9 million from the third quarter.
  • Net interest margin was 3.12% up 2 basis points from the previous quarter.
  • Non-interest revenue of $114.8 million was stable with the third quarter and increased $16.8 million or 17% compared to fourth quarter 2019.
    • The fourth quarter included broad-based growth with increases in service charges, fiduciary and asset management, card fees, and brokerage offset by declines in capital markets and mortgage revenues.
  • Non-interest expense decreased $14.2 million or 4% sequentially. Adjusted non-interest expense increased $6.4 million or 2% from the prior quarter.
    • Adjusted non-interest expense includes a $4.5 million increase in fees related to Synovus Forward, PPP, and COVID.
  • Provision for credit losses was $11.1 million a $32.3 million decrease from the previous quarter.
    • The decrease includes net charge-offs of $22.1 million. Provision for credit losses other than net charge-offs reflects lower loan balances and a more favorable economic outlook.
  • The effective tax rate was 19.6% for the quarter.

Capital Ratios

 

 

 

 

 

 

 

 

4Q20

 

3Q20

 

4Q19

Common equity Tier 1 capital (CET1) ratio

9.67

%

(1)

9.30

%

 

8.95

%

Tier 1 capital ratio

10.95

 

(1)

10.57

 

 

10.23

 

Total risk-based capital ratio

13.43

 

(1)

13.16

 

 

12.25

 

Tier 1 leverage ratio

8.50

 

(1)

8.48

 

 

9.16

 

Tangible common equity ratio(2)

7.66

 

 

7.67

 

 

8.08

 

 

(1) Ratios are preliminary

(2) Non-GAAP measure; see applicable reconciliation

Capital

  • CET1 ratio increased 37 basis points sequentially to 9.67%, above the higher end of the 9.0-9.5% operating range.
  • Total risk-based capital ratio of 13.43% increased 27 basis points from the prior quarter and includes subordinated debt optimization efforts completed in the fourth quarter.
  • The Board of Directors has authorized share repurchases of up to $200 million in 2021.

Fourth Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. ET on January 26, 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 $54 billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services through 289 branches in Georgia, Alabama, South Carolina, Florida, and Tennessee. Synovus Bank, a wholly owned subsidiary of Synovus, has been recognized as one of the country's "Most Reputable Banks" by American Banker and The Reputation Institute. Synovus is on the web at synovus.com, and on Twitter, Facebook, LinkedIn, and Instagram.

Forward-Looking Statements

This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements through Synovus’ use of words such as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the future or otherwise regarding the outlook for Synovus’ future business and financial performance and/or the performance of the banking industry and economy in general. These forward-looking statements include, among others, our expectations regarding our future operating and financial performance, including our outlook and long-term goals for future growth; our expectations regarding net interest margin; expectations on our growth strategy, expense management, capital 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, 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 exclusive of investment securities gains (losses), net and gain on sale and fair value increase, net of private equity investments. 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)

4Q20

 

3Q20

 

4Q19

 

2020

 

2019

Adjusted non-interest revenue

 

 

 

 

 

 

 

 

 

Total non-interest revenue

$

114,761

 

 

$

114,411

 

 

$

97,955

 

 

$

506,513

 

 

$

355,900

 

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

(2,337)

 

 

1,550

 

 

2,157

 

 

(78,931)

 

 

7,659

 

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

(63)

 

 

(260)

 

 

(8,100)

 

 

(4,775)

 

 

(11,607)

 

Adjusted non-interest revenue

$

112,361

 

 

$

115,701

 

 

$

92,012

 

 

$

422,807

 

 

$

351,952

 

 

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense

 

 

 

 

 

 

 

 

 

Total non-interest expense

$

302,498

 

 

$

316,655

 

 

$

266,121

 

 

$

1,179,574

 

 

$

1,098,968

 

Subtract: Earnout liability adjustments

 

 

 

 

 

 

(4,908)

 

 

(10,457)

 

Subtract: Goodwill impairment

 

 

(44,877)

 

 

 

 

(44,877)

 

 

 

Add/subtract: Merger-related expense

 

 

 

 

913

 

 

 

 

(56,580)

 

Subtract: Restructuring charges

(18,068)

 

 

(2,882)

 

 

(1,259)

 

 

(26,991)

 

 

(1,230)

 

Subtract: Valuation adjustment to Visa derivative

(890)

 

 

 

 

(1,111)

 

 

(890)

 

 

(3,611)

 

Subtract: Loss on early extinguishment of debt

(8,409)

 

 

(154)

 

 

 

 

(10,466)

 

 

(4,592)

 

Adjusted non-interest expense

$

275,131

 

 

$

268,742

 

 

$

264,664

 

 

$

1,091,442

 

 

$

1,022,498

 

 

 

 

 

 

 

 

 

 

 

Adjusted total revenues and adjusted tangible efficiency ratio

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense

$

275,131

 

 

$

268,742

 

 

$

264,664

 

 

$

1,091,442

 

 

$

1,022,498

 

Subtract: Amortization of intangibles

(2,640)

 

 

(2,640)

 

 

(2,901)

 

 

(10,560)

 

 

(11,603)

 

Adjusted tangible non-interest expense

$

272,491

 

 

$

266,102

 

 

$

261,763

 

 

$

1,080,882

 

 

$

1,010,895

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$

385,932

 

 

$

376,990

 

 

$

399,268

 

 

$

1,512,748

 

 

$

1,595,803

 

Add: Tax equivalent adjustment

821

 

 

956

 

 

769

 

 

3,424

 

 

3,025

 

Add: Total non-interest revenue

114,761

 

 

114,411

 

 

97,955

 

 

506,513

 

 

355,900

 

Total FTE revenues

501,514

 

 

492,357

 

 

497,992

 

 

2,022,685

 

 

1,954,728

 

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

(2,337)

 

 

1,550

 

 

2,157

 

 

(78,931)

 

 

7,659

 

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

(63)

 

 

(260)

 

 

(8,100)

 

 

(4,775)

 

 

(11,607)

 

Adjusted total revenues

$

499,114

 

 

$

493,647

 

 

$

492,049

 

 

$

1,938,979

 

 

$

1,950,780

 

Efficiency ratio-FTE

60.32

%

 

64.31

%

 

53.44

%

 

58.32

%

 

56.22

%

Adjusted tangible efficiency ratio

54.60

 

 

53.91

 

 

53.20

 

 

55.74

 

 

51.82

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

 

 

(in thousands, except per share data)

4Q20

 

3Q20

 

4Q19

 

2020

 

2019

Adjusted return on average assets

 

 

 

 

 

 

 

 

 

Net income

$

150,409

 

 

$

91,574

 

 

$

151,684

 

 

$

373,695

 

 

$

563,780

 

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

 

 

 

 

 

 

 

 

4,402

 

Add: Earnout liability adjustments

 

 

 

 

 

 

4,908

 

 

10,457

 

Add: Goodwill impairment

 

 

44,877

 

 

 

 

44,877

 

 

 

Subtract/add: Merger-related expense

 

 

 

 

(913)

 

 

 

 

56,580

 

Add: Restructuring charges

18,068

 

 

2,882

 

 

1,259

 

 

26,991

 

 

1,230

 

Add: Valuation adjustment to Visa derivative

890

 

 

 

 

1,111

 

 

890

 

 

3,611

 

Add: Loss on early extinguishment of debt

8,409

 

 

154

 

 

 

 

10,466

 

 

4,592

 

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

(2,337)

 

 

1,550

 

 

2,157

 

 

(78,931)

 

 

7,659

 

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

(63)

 

 

(260)

 

 

(8,100)

 

 

(4,775)

 

 

(11,607)

 

Subtract/add: Tax effect of adjustments

(6,467)

 

 

(1,122)

 

 

1,162

 

 

11,748

 

 

(9,343)

 

Adjusted net income

$

168,909

 

 

$

139,655

 

 

$

148,360

 

 

$

389,869

 

 

$

631,361

 

Net income annualized

$

598,366

 

 

$

364,305

 

 

$

601,790

 

 

$

373,695

 

 

$

563,780

 

Adjusted net income annualized

$

671,964

 

 

$

555,584

 

 

$

588,602

 

 

$

389,869

 

 

$

631,361

 

Total average assets

$

53,833,909

 

 

$

53,138,334

 

 

$

47,459,405

 

 

$

52,138,038

 

 

$

46,791,930

 

Return on average assets

1.11

%

 

0.69

%

 

1.27

%

 

0.72

%

 

1.20

%

Adjusted return on average assets

1.25

 

 

1.05

 

 

1.24

 

 

0.75

 

 

1.35

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

$

142,118

 

 

$

83,283

 

 

$

143,393

 

 

$

340,532

 

 

$

540,899

 

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

 

 

 

 

 

 

 

 

4,402

 

Add: Earnout liability adjustments

 

 

 

 

 

 

4,908

 

 

10,457

 

Add: Goodwill impairment

 

 

44,877

 

 

 

 

44,877

 

 

 

Subtract/add: Merger-related expense

 

 

 

 

(913)

 

 

 

 

56,580

 

Add: Restructuring charges

18,068

 

 

2,882

 

 

1,259

 

 

26,991

 

 

1,230

 

Add: Valuation adjustment to Visa derivative

890

 

 

 

 

1,111

 

 

890

 

 

3,611

 

Add: Loss on early extinguishment of debt

8,409

 

 

154

 

 

 

 

10,466

 

 

4,592

 

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

(2,337)

 

 

1,550

 

 

2,157

 

 

(78,931)

 

 

7,659

 

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

(63)

 

 

(260)

 

 

(8,100)

 

 

(4,775)

 

 

(11,607)

 

Subtract/add: Tax effect of adjustments

(6,467)

 

 

(1,122)

 

 

1,162

 

 

11,748

 

 

(9,343)

 

Adjusted net income available to common shareholders

$

160,618

 

 

$

131,364

 

 

$

140,069

 

 

$

356,706

 

 

$

608,480

 

Weighted average common shares outstanding, diluted

148,725

 

 

147,976

 

 

148,529

 

 

148,210

 

 

156,058

 

Net income per common share, diluted

$

0.96

 

 

$

0.56

 

 

$

0.97

 

 

$

2.30

 

 

$

3.47

 

Adjusted net income per common share, diluted

1.08

 

 

0.89

 

 

0.94

 

 

2.41

 

 

3.90

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

 

 

(dollars in thousands)

4Q20

 

3Q20

 

4Q19

 

2020

 

2019

 

 

 

 

 

 

 

 

 

 

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

$

142,118

 

 

$

83,283

 

 

$

143,393

 

 

$

340,532

 

 

$

540,899

 

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

 

 

 

 

 

 

 

 

4,402

 

Add: Earnout liability adjustments

 

 

 

 

 

 

4,908

 

 

10,457

 

Add: Goodwill impairment

 

 

44,877

 

 

 

 

44,877

 

 

 

Subtract/add: Merger-related expense

 

 

 

 

(913)

 

 

 

 

56,580

 

Add: Restructuring charges

18,068

 

 

2,882

 

 

1,259

 

 

26,991

 

 

1,230

 

Add: Valuation adjustment to Visa derivative

890

 

 

 

 

1,111

 

 

890

 

 

3,611

 

Add: Loss on early extinguishment of debt

8,409

 

 

154

 

 

 

 

10,466

 

 

4,592

 

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

(2,337)

 

 

1,550

 

 

2,157

 

 

(78,931)

 

 

7,659

 

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

(63)

 

 

(260)

 

 

(8,100)

 

 

(4,775)

 

 

(11,607)

 

Subtract/add: Tax effect of adjustments

(6,467)

 

 

(1,122)

 

 

1,162

 

 

11,748

 

 

(9,343)

 

Adjusted net income available to common shareholders

$

160,618

 

 

$

131,364

 

 

$

140,069

 

 

$

356,706

 

 

$

608,480

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income available to common shareholders annualized

$

638,980

 

 

$

522,600

 

 

$

555,709

 

 

$

356,706

 

 

$

608,480

 

Add: Amortization of intangibles

7,782

 

 

7,782

 

 

8,528

 

 

7,825

 

 

8,598

 

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

$

646,762

 

 

$

530,382

 

 

$

564,237

 

 

$

364,531

 

 

$

617,078

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders annualized

$

565,382

 

 

$

331,322

 

 

$

568,896

 

 

$

340,532

 

 

$

540,899

 

Add: Amortization of intangibles

7,782

 

 

7,782

 

 

8,528

 

 

7,825

 

 

8,598

 

Net income available to common shareholders excluding amortization of intangibles annualized

$

573,164

 

 

$

339,104

 

 

$

577,424

 

 

$

348,357

 

 

$

549,497

 

 

 

 

 

 

 

 

 

 

 

Total average shareholders' equity less preferred stock

$

4,594,199

 

 

$

4,553,159

 

 

$

4,348,250

 

 

$

4,534,935

 

 

$

4,384,458

 

Subtract: Goodwill

(452,390)

 

 

(497,267)

 

 

(488,223)

 

 

(485,987)

 

 

(487,126)

 

Subtract: Other intangible assets, net

(46,511)

 

 

(49,075)

 

 

(57,149)

 

 

(50,427)

 

 

(65,553)

 

Total average tangible shareholders' equity less preferred stock

$

4,095,298

 

 

$

4,006,817

 

 

$

3,802,878

 

 

$

3,998,521

 

 

$

3,831,779

 

Return on average common equity

12.31

%

 

7.28

%

 

13.08

%

 

7.51

%

 

12.34

%

Adjusted return on average common equity

13.91

 

 

11.48

 

 

12.78

 

 

7.87

 

 

13.88

 

Return on average tangible common equity

14.00

 

 

8.46

 

 

15.18

 

 

8.71

 

 

14.34

 

Adjusted return on average tangible common equity

15.79

 

 

13.24

 

 

14.84

 

 

9.12

 

 

16.10

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

December 31,

 

September 30,

 

December 31,

(dollars in thousands)

2020

 

2020

 

2019

Tangible common equity ratio

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

54,366,086

 

 

$

53,040,538

 

 

$

48,203,282

 

Subtract: Goodwill

(452,390)

 

 

(452,390)

 

 

(497,267)

 

Subtract: Other intangible assets, net

(45,112)

 

 

(47,752)

 

 

(55,671)

 

Tangible assets

$

53,868,584

 

 

$

52,540,396

 

 

$

47,650,344

 

 

 

 

 

 

 

Total shareholders’ equity

$

5,161,334

 

 

$

5,064,542

 

 

$

4,941,690

 

Subtract: Goodwill

(452,390)

 

 

(452,390)

 

 

(497,267)

 

Subtract: Other intangible assets, net

(45,112)

 

 

(47,752)

 

 

(55,671)

 

Subtract: Preferred stock, no par value

(537,145)

 

 

(537,145)

 

 

(537,145)

 

Tangible common equity

$

4,126,687

 

 

$

4,027,255

 

 

$

3,851,607

 

Total shareholders’ equity to total assets ratio

9.49

%

 

9.55

%

 

10.25

%

Tangible common equity ratio

7.66

 

 

7.67

 

 

8.08

 

 

 

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT DATA

 

 

(Unaudited)

 

Years Ended

(Dollars in thousands, except per share data)

 

December 31,

 

 

 

 

 

 

 

 

 

2020

 

2019

 

% Change

 

 

 

 

 

 

 

Interest income

 

$

1,804,495

 

 

$

2,050,638

 

 

(12)

%

Interest expense

 

291,747

 

 

454,835

 

 

(36)

 

 

 

 

 

 

 

 

Net interest income

 

1,512,748

 

 

1,595,803

 

 

(5)

 

Provision for credit losses

 

355,022

 

 

87,720

 

 

305

 

Net interest income after provision for credit losses

 

1,157,726

 

 

1,508,083

 

 

(23)

 

 

 

 

 

 

 

 

Non-interest revenue:

 

 

 

 

 

 

Service charges on deposit accounts

 

73,132

 

 

88,190

 

 

(17)

 

Fiduciary and asset management fees

 

63,251

 

 

58,388

 

 

8

 

Card fees

 

42,702

 

 

45,659

 

 

(6)

 

Brokerage revenue

 

44,781

 

 

41,608

 

 

8

 

Mortgage banking income

 

91,413

 

 

32,599

 

 

180

 

Capital markets income

 

27,336

 

 

30,529

 

 

(10)

 

Income from bank-owned life insurance

 

31,297

 

 

21,226

 

 

47

 

Investment securities gains (losses), net

 

78,931

 

 

(7,659)

 

 

nm

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

 

4,775

 

 

11,607

 

 

nm

Other non-interest revenue

 

48,895

 

 

33,753

 

 

45

 

Total non-interest revenue

 

506,513

 

 

355,900

 

 

42

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

Salaries and other personnel expense

 

618,214

 

 

570,036

 

 

8

 

Net occupancy, equipment, and software expense

 

169,658

 

 

161,906

 

 

5

 

Third-party processing and other services

 

83,034

 

 

75,696

 

 

10

 

Professional fees

 

56,899

 

 

35,300

 

 

61

 

FDIC insurance and other regulatory fees

 

25,210

 

 

31,696

 

 

(20)

 

Amortization of intangibles

 

10,560

 

 

11,603

 

 

(9)

 

Goodwill impairment

 

44,877

 

 

 

 

nm

Restructuring charges

 

26,991

 

 

1,230

 

 

nm

Loss on early extinguishment of debt

 

10,466

 

 

4,592

 

 

nm

Earnout liability adjustments

 

4,908

 

 

10,457

 

 

nm

Merger-related expense

 

 

 

56,580

 

 

nm

Other operating expenses

 

128,757

 

 

139,872

 

 

(8)

 

Total non-interest expense

 

1,179,574

 

 

1,098,968

 

 

7

 

 

 

 

 

 

 

 

Income before income taxes

 

484,665

 

 

765,015

 

 

(37)

 

Income tax expense

 

110,970

 

 

201,235

 

 

(45)

 

Net income

 

373,695

 

 

563,780

 

 

(34)

 

Less: Preferred stock dividends

 

33,163

 

 

22,881

 

 

45

 

Net income available to common shareholders

 

$

340,532

 

 

$

540,899

 

 

(37)

%

Net income per common share, basic

 

2.31

 

 

3.50

 

 

(34)

%

Net income per common share, diluted

 

2.30

 

 

3.47

 

 

(34)

 

Cash dividends declared per common share

 

1.32

 

 

1.20

 

 

10

 

Return on average assets*

 

0.72

%

 

1.20

%

 

(48)

bps

Return on average common equity*

 

7.51

 

 

12.34

 

 

(483)

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

147,415

 

 

154,331

 

 

(4)

%

Weighted average common shares outstanding, diluted

 

148,210

 

 

156,058

 

 

(5)

 

 

 

 

 

 

 

 

nm - not meaningful

 

 

 

 

 

 

bps - basis points

 

 

 

 

 

 

* - ratios are annualized

 

 

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT DATA

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

2020

 

2019

 

Fourth Quarter

 

Fourth
Quarter

 

Third Quarter

 

Second
Quarter

 

First Quarter

 

Fourth
Quarter

 

20 vs '19

 

 

 

% Change

Interest income

$

433,479

 

 

435,550

 

 

451,569

 

 

483,897

 

 

506,253

 

 

(14)

%

Interest expense

47,547

 

 

58,560

 

 

75,003

 

 

110,637

 

 

106,985

 

 

(56)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

385,932

 

 

376,990

 

 

376,566

 

 

373,260

 

 

399,268

 

 

(3)

 

Provision for credit losses

11,066

 

 

43,383

 

 

141,851

 

 

158,722

 

 

24,470

 

 

(55)

 

Net interest income after provision for credit losses

374,866

 

 

333,607

 

 

234,715

 

 

214,538

 

 

374,798

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest revenue:

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

19,063

 

 

17,813

 

 

15,567

 

 

20,689

 

 

22,385

 

 

(15)

 

Fiduciary and asset management fees

17,242

 

 

15,885

 

 

14,950

 

 

15,174

 

 

15,645

 

 

10

 

Card fees

11,743

 

 

10,823

 

 

9,186

 

 

10,950

 

 

11,325

 

 

4

 

Brokerage revenue

11,794

 

 

10,604

 

 

9,984

 

 

12,398

 

 

11,106

 

 

6

 

Mortgage banking income

24,426

 

 

31,229

 

 

23,530

 

 

12,227

 

 

9,287

 

 

163

 

Capital markets income

4,352

 

 

5,690

 

 

6,050

 

 

11,243

 

 

8,972

 

 

(51)

 

Income from bank-owned life insurance

9,725

 

 

7,778

 

 

7,756

 

 

6,038

 

 

5,620

 

 

73

 

Investment securities gains (losses), net

2,337

 

 

(1,550)

 

 

69,409

 

 

8,734

 

 

(2,157)

 

 

nm

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

63

 

 

260

 

 

8,707

 

 

(4,255)

 

 

8,100

 

 

nm

Other non-interest revenue

14,016

 

 

15,879

 

 

8,345

 

 

10,659

 

 

7,672

 

 

83

 

Total non-interest revenue

114,761

 

 

114,411

 

 

173,484

 

 

103,857

 

 

97,955

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

Salaries and other personnel expense

153,946

 

 

154,994

 

 

159,597

 

 

149,678

 

 

145,084

 

 

6

 

Net occupancy, equipment, and software expense

44,183

 

 

41,554

 

 

41,727

 

 

42,194

 

 

42,644

 

 

4

 

Third-party processing and other services

19,569

 

 

20,620

 

 

21,366

 

 

21,480

 

 

20,293

 

 

(4)

 

Professional Fees

17,541

 

 

13,377

 

 

15,305

 

 

10,675

 

 

9,921

 

 

77

 

FDIC insurance and other regulatory fees

6,288

 

 

6,793

 

 

6,851

 

 

5,278

 

 

9,825

 

 

(36)

 

Amortization of intangibles

2,640

 

 

2,640

 

 

2,640

 

 

2,640

 

 

2,901

 

 

(9)

 

Goodwill impairment

 

 

44,877

 

 

 

 

 

 

 

 

nm

Restructuring charges

18,068

 

 

2,882

 

 

2,822

 

 

3,220

 

 

1,259

 

 

nm

Loss on early extinguishment of debt

8,409

 

 

154

 

 

 

 

1,904

 

 

 

 

nm

Earnout liability adjustments

 

 

 

 

4,908

 

 

 

 

 

 

nm

Other operating expenses

31,854

 

 

28,764

 

 

28,925

 

 

39,210

 

 

34,194

 

 

(7)

 

Total non-interest expense

302,498

 

 

316,655

 

 

284,141

 

 

276,279

 

 

266,121

 

 

14

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

187,129

 

 

131,363

 

 

124,058

 

 

42,116

 

 

206,632

 

 

(9)

 

Income tax expense

36,720

 

 

39,789

 

 

30,866

 

 

3,595

 

 

54,948

 

 

(33)

 

Net income

150,409

 

 

91,574

 

 

93,192

 

 

38,521

 

 

151,684

 

 

(1)

 

Less: Preferred stock dividends

8,291

 

 

8,291

 

 

8,291

 

 

8,291

 

 

8,291

 

 

 

Net income available to common shareholders

$

142,118

 

 

83,283

 

 

84,901

 

 

30,230

 

 

143,393

 

 

(1)

 

Net income per common share, basic

$

0.96

 

 

0.57

 

 

0.58

 

 

0.21

 

 

0.98

 

 

(1)

%

Net income per common share, diluted

0.96

 

 

0.56

 

 

0.57

 

 

0.20

 

 

0.97

 

 

(1)

 

Cash dividends declared per common share

0.33

 

 

0.33

 

 

0.33

 

 

0.33

 

 

0.30

 

 

10

 

Return on average assets *

1.11

%

 

0.69

 

 

0.71

 

 

0.32

 

 

1.27

 

 

(16)

bps

Return on average common equity *

12.31

 

 

7.28

 

 

7.48

 

 

2.75

 

 

13.08

 

 

(77)

 

Weighted average common shares outstanding, basic

147,744

 

 

147,314

 

 

147,288

 

 

147,311

 

 

146,948

 

 

1

%

Weighted average common shares outstanding, diluted

148,725

 

 

147,976

 

 

147,733

 

 

148,401

 

 

148,529

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

nm - not meaningful

 

 

 

 

 

 

 

 

 

 

 

bps - basis points

 

 

 

 

 

 

 

 

 

 

 

* - ratios are annualized

 

 

 

 

 

 

 

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET DATA

 

December 31, 2020

 

September 30, 2020

 

December 31, 2019

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except share data)

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Cash and due from banks

 

$

531,625

 

 

$

578,026

 

 

$

535,846

 

Interest-bearing funds with Federal Reserve Bank

 

3,586,565

 

 

1,266,313

 

 

553,390

 

Interest earning deposits with banks

 

20,944

 

 

20,929

 

 

20,635

 

Federal funds sold and securities purchased under resale agreements

 

113,783

 

 

120,095

 

 

77,047

 

Cash and cash equivalents

 

4,252,917

 

 

1,985,363

 

 

1,186,918

 

 

 

 

 

 

 

 

Investment securities available for sale, at fair value

 

7,962,438

 

 

7,566,525

 

 

6,778,670

 

Loans held for sale ($216,647, $285,899, and $115,173 measured at fair value, respectively)

 

760,123

 

 

745,160

 

 

115,173

 

Loans, net of deferred fees and costs

 

38,252,984

 

 

39,549,847

 

 

37,162,450

 

Allowance for loan losses

 

(605,736)

 

 

(603,800)

 

 

(281,402)

 

Loans, net

 

37,647,248

 

 

38,946,047

 

 

36,881,048

 

 

 

 

 

 

 

 

Cash surrender value of bank-owned life insurance

 

1,049,373

 

 

1,044,046

 

 

775,665

 

Premises and equipment, net

 

463,959

 

 

471,208

 

 

493,940

 

Goodwill

 

452,390

 

 

452,390

 

 

497,267

 

Other intangible assets, net

 

45,112

 

 

47,752

 

 

55,671

 

Other assets

 

1,732,526

 

 

1,782,047

 

 

1,418,930

 

Total assets

 

$

54,366,086

 

 

$

53,040,538

 

 

$

48,203,282

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Non-interest-bearing deposits

 

$

13,477,854

 

 

$

13,075,081

 

 

$

9,439,485

 

Interest-bearing deposits

 

33,213,717

 

 

31,590,823

 

 

28,966,019

 

Total deposits

 

46,691,571

 

 

44,665,904

 

 

38,405,504

 

 

 

 

 

 

 

 

Federal funds purchased and securities sold under repurchase agreements

 

227,922

 

 

202,344

 

 

165,690

 

Other short-term borrowings

 

7,717

 

 

400,000

 

 

1,753,560

 

Long-term debt

 

1,202,494

 

 

1,628,385

 

 

2,153,897

 

Other liabilities

 

1,075,048

 

 

1,079,363

 

 

782,941

 

Total liabilities

 

49,204,752

 

 

47,975,996

 

 

43,261,592

 

 

 

 

 

 

 

 

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 168,132,522, 167,410,950, and 166,800,623; outstanding 148,039,495, 147,317,923, and 147,157,596

 

168,133

 

 

167,411

 

 

166,801

 

Additional paid-in capital

 

3,851,208

 

 

3,832,142

 

 

3,819,336

 

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

 

(731,806)

 

 

(731,806)

 

 

(715,560)

 

Accumulated other comprehensive income, net

 

158,635

 

 

174,914

 

 

65,641

 

Retained earnings

 

1,178,019

 

 

1,084,736

 

 

1,068,327

 

Total shareholders’ equity

 

5,161,334

 

 

5,064,542

 

 

4,941,690

 

Total liabilities and shareholders' equity

 

$

54,366,086

 

 

$

53,040,538

 

 

$

48,203,282

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES AND YIELDS/RATES (1)

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

2020

 

2019

 

 

 

Fourth

Third

Second

First

 

Fourth

 

 

 

Quarter

Quarter

Quarter

Quarter

 

Quarter

 

Interest Earning Assets

 

 

 

 

 

 

 

 

Investment securities (2) (4)

 

$

7,493,822

 

7,227,400

 

6,618,533

 

6,680,047

 

 

6,696,768

 

 

Yield

 

2.07

%

2.39

 

2.72

 

3.09

 

 

3.12

 

 

Trading account assets (5)

 

$

8,496

 

5,391

 

6,173

 

6,306

 

 

7,986

 

 

Yield

 

1.03

%

1.69

 

2.19

 

2.70

 

 

2.69

 

 

Commercial loans (3) (4)

 

$

30,363,102

 

30,730,135

 

30,236,919

 

27,607,343

 

 

26,698,202

 

 

Yield

 

3.96

%

3.80

 

3.95

 

4.57

 

 

4.82

 

 

Consumer loans (3)

 

$

8,521,449

 

9,032,437

 

9,899,172

 

9,985,702

 

 

9,809,832

 

 

Yield

 

4.00

%

4.08

 

4.34

 

4.60

 

 

5.07

 

 

Allowance for loan losses

 

$

(595,547)

 

(591,098)

 

(498,545)

 

(368,033)

 

 

(269,052)

 

 

Loans, net (3)

 

$

38,289,004

 

39,171,474

 

39,637,546

 

37,225,012

 

 

36,238,982

 

 

Yield

 

4.03

%

3.92

 

4.08

 

4.62

 

 

4.93

 

 

Mortgage loans held for sale

 

$

309,278

 

244,952

 

221,157

 

86,415

 

 

117,909

 

 

Yield

 

2.74

%

2.92

 

3.09

 

3.67

 

 

3.77

 

 

Other loans held for sale

 

$

544,301

 

493,940

 

19,246

 

 

 

 

 

Yield

 

2.81

%

3.61

 

4.19

 

 

 

 

 

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

 

$

2,716,645

 

1,265,880

 

1,709,086

 

652,130

 

 

514,635

 

 

Yield

 

0.10

%

0.11

 

0.11

 

1.02

 

 

1.71

 

 

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

 

$

162,537

 

200,923

 

247,801

 

284,082

 

 

278,586

 

 

Yield

 

2.64

%

2.73

 

3.60

 

3.38

 

 

2.85

 

 

Total interest earning assets

 

$

49,524,083

 

48,609,960

 

48,459,542

 

44,933,992

 

 

43,854,866

 

 

Yield

 

3.49

%

3.58

 

3.75

 

4.33

 

 

4.60

 

 

Interest-Bearing Liabilities

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

8,531,415

 

7,789,095

 

7,260,940

 

6,445,986

 

 

6,381,282

 

 

Rate

 

0.16

%

0.19

 

0.21

 

0.51

 

 

0.60

 

 

Money Market accounts

 

$

14,411,860

 

13,272,972

 

12,238,479

 

11,548,014

 

 

10,526,296

 

 

Rate

 

0.26

%

0.36

 

0.46

 

1.00

 

 

1.13

 

 

Savings deposits

 

$

1,147,667

 

1,114,956

 

1,036,024

 

926,822

 

 

915,640

 

 

Rate

 

0.01

%

0.02

 

0.02

 

0.05

 

 

0.05

 

 

Time deposits under $100,000

 

$

1,239,592

 

1,379,923

 

1,621,943

 

1,761,741

 

 

1,873,350

 

 

Rate

 

0.74

%

1.03

 

1.43

 

1.64

 

 

1.27

 

 

Time deposits over $100,000

 

$

3,302,959

 

3,863,821

 

4,772,555

 

5,051,705

 

 

5,198,266

 

 

Rate

 

1.03

%

1.44

 

1.80

 

2.04

 

 

1.51

 

 

Other brokered deposits

 

$

1,978,393

 

1,912,114

 

1,998,571

 

1,376,669

 

 

1,156,131

 

 

Rate

 

0.23

%

0.23

 

0.25

 

1.42

 

 

1.84

 

 

Brokered time deposits

 

$

1,795,982

 

2,232,940

 

2,244,429

 

2,166,496

 

 

2,121,069

 

 

Rate

 

1.60

%

1.59

 

1.86

 

2.11

 

 

2.16

 

 

Total interest-bearing deposits

 

$

32,407,868

 

31,565,821

 

31,172,941

 

29,277,433

 

 

28,172,034

 

 

Rate

 

0.39

%

0.54

 

0.73

 

1.18

 

 

1.16

 

 

Federal funds purchased and securities sold under repurchase agreements

 

$

174,316

 

180,342

 

250,232

 

167,324

 

 

192,731

 

 

Rate

 

0.07

%

0.09

 

0.12

 

0.30

 

 

0.24

 

 

Other short-term borrowings

 

$

 

46,739

 

550,000

 

1,384,362

 

 

1,565,507

 

 

Rate

 

%

1.12

 

1.23

 

1.66

 

 

1.87

 

 

Long-term debt

 

$

1,552,791

 

2,234,665

 

2,834,188

 

2,678,651

 

 

2,153,983

 

 

Rate

 

3.96

%

2.71

 

2.36

 

2.78

 

 

3.07

 

 

Total interest-bearing liabilities

 

$

34,134,975

 

34,027,567

 

34,807,361

 

33,507,770

 

 

32,084,255

 

 

Rate

 

0.55

%

0.68

 

0.86

 

1.30

 

 

1.30

 

 

Non-interest-bearing demand deposits

 

$

13,566,112

 

12,773,676

 

11,923,534

 

9,409,774

 

 

9,706,784

 

 

Cost of funds

 

0.40

%

0.50

 

0.65

 

1.04

 

 

1.02

 

 

Net interest margin

 

3.12

%

3.10

 

3.13

 

3.37

 

 

3.65

 

 

Taxable equivalent adjustment

 

$

821

 

956

 

861

 

786

 

 

769

 

 

 

 

 

 

 

 

 

 

 

(1) Yields and rates are annualized.

 

(2) Excludes net unrealized gains and losses.

 

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

 

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

 

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

Synovus

 

 

 

 

 

 

 

 

 

 

LOANS OUTSTANDING BY TYPE

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans

 

Total Loans

 

Linked
Quarter

 

Total Loans

 

Year/Year

Loan Type

 

December 31,
2020

 

September 30,
2020

 

% Change

 

December 31,
2019

 

% Change

Commercial, Financial, and Agricultural

 

$

12,574,899

 

 

$

13,120,038

 

 

(4)

%

 

$

10,239,559

 

 

23

%

Owner-Occupied

 

6,798,780

 

 

6,894,113

 

 

(1)

 

 

6,529,811

 

 

4

 

Total Commercial & Industrial

 

19,373,679

 

 

20,014,151

 

 

(3)

 

 

16,769,370

 

 

16

 

 

 

 

 

 

 

 

 

 

 

 

Multi-Family

 

2,197,942

 

 

2,365,118

 

 

(7)

 

 

1,989,096

 

 

10

 

Hotels

 

1,444,264

 

 

1,409,424

 

 

2

 

 

1,284,291

 

 

12

 

Office Buildings

 

2,261,253

 

 

2,313,346

 

 

(2)

 

 

2,255,308

 

 

 

Shopping Centers

 

1,607,223

 

 

1,698,993

 

 

(5)

 

 

1,785,616

 

 

(10)

 

Warehouses

 

702,020

 

 

730,253

 

 

(4)

 

 

703,705

 

 

 

Other Investment Property

 

1,133,828

 

 

1,145,313

 

 

(1)

 

 

986,311

 

 

15

 

Total Investment Properties

 

9,346,530

 

 

9,662,447

 

 

(3)

 

 

9,004,327

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

1-4 Family Construction

 

183,373

 

 

180,406

 

 

2

 

 

284,594

 

 

(36)

 

1-4 Family Investment Mortgage

 

445,795

 

 

474,632

 

 

(6)

 

 

495,421

 

 

(10)

 

Total 1-4 Family Properties

 

629,168

 

 

655,038

 

 

(4)

 

 

780,015

 

 

(19)

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Development

 

130,802

 

 

111,493

 

 

17

 

 

103,643

 

 

26

 

Residential Development

 

245,776

 

 

260,313

 

 

(6)

 

 

282,677

 

 

(13)

 

Land Acquisition

 

218,158

 

 

276,584

 

 

(21)

 

 

323,122

 

 

(32)

 

Land and Development

 

594,736

 

 

648,390

 

 

(8)

 

 

709,442

 

 

(16)

 

 

 

 

 

 

 

 

 

 

 

 

Total Commercial Real Estate

 

10,570,434

 

 

10,965,875

 

 

(4)

 

 

10,493,784

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Mortgages

 

5,507,700

 

 

5,658,525

 

 

(3)

 

 

5,546,368

 

 

(1)

 

Home Equity Lines

 

1,523,836

 

 

1,615,207

 

 

(6)

 

 

1,713,157

 

 

(11)

 

Credit Cards

 

281,018

 

 

264,829

 

 

6

 

 

268,841

 

 

5

 

Other Consumer Loans

 

1,073,989

 

 

1,130,237

 

 

(5)

 

 

2,396,294

 

 

(55)

 

Total Consumer

 

8,386,543

 

 

8,668,798

 

 

(3)

 

 

9,924,660

 

 

(15)

 

 

 

 

 

 

 

 

 

 

 

 

Unearned Income

 

(77,672)

 

 

(98,977)

 

 

(22)

 

 

(25,364)

 

 

206

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

38,252,984

 

 

$

39,549,847

 

 

(3)

%

 

$

37,162,450

 

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING LOANS COMPOSITION (1)

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Total
Non-performing Loans

 

Total
Non-performing Loans

 

Linked
Quarter

 

Total
Non-performing Loans

 

Year/Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Type

 

December 31,
2020

 

September 30,
2020

 

% Change

 

December 31,
2019

 

% Change

Commercial, Financial, and Agricultural

 

$

77,386

 

 

$

95,365

 

 

(19)

%

 

$

56,186

 

 

38

%

Owner-Occupied

 

20,019

 

 

20,261

 

 

(1)

 

 

9,780

 

 

105

 

Total Commercial & Industrial

 

97,405

 

 

115,626

 

 

(16)

 

 

65,966

 

 

48

 

 

 

 

 

 

 

 

 

 

 

 

Multi-Family

 

168

 

 

157

 

 

7

 

 

385

 

 

(56)

 

Office Buildings

 

1,134

 

 

27,608

 

 

(96)

 

 

600

 

 

89

 

Shopping Centers

 

21,082

 

 

257

 

 

nm

 

718

 

 

nm

Warehouses

 

217

 

 

 

 

nm

 

 

 

nm

Other Investment Property

 

2,030

 

 

238

 

 

753

 

 

321

 

 

532

 

Total Investment Properties

 

24,631

 

 

28,260

 

 

(13)

 

 

2,024

 

 

nm

 

 

 

 

 

 

 

 

 

 

 

1-4 Family Construction

 

1,236

 

 

1,556

 

 

(21)

 

 

698

 

 

77

 

1-4 Family Investment Mortgage

 

2,383

 

 

1,815

 

 

31

 

 

1,555

 

 

53

 

Total 1-4 Family Properties

 

3,619

 

 

3,371

 

 

7

 

 

2,253

 

 

61

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Development

 

582

 

 

833

 

 

(30)

 

 

87

 

 

569

 

Residential Development

 

533

 

 

648

 

 

(18)

 

 

395

 

 

35

 

Land Acquisition

 

1,048

 

 

910

 

 

15

 

 

628

 

 

67

 

Land and Development

 

2,163

 

 

2,391

 

 

(10)

 

 

1,110

 

 

95

 

 

 

 

 

 

 

 

 

 

 

 

Total Commercial Real Estate

 

30,413

 

 

34,022

 

 

(11)

 

 

5,387

 

 

465

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Mortgages

 

8,740

 

 

7,433

 

 

18

 

 

12,545

 

 

(30)

 

Home Equity Lines

 

12,145

 

 

10,297

 

 

18

 

 

12,034

 

 

1

 

Other Consumer Loans

 

2,376

 

 

1,459

 

 

63

 

 

5,704

 

 

(58)

 

Total Consumer

 

23,261

 

 

19,189

 

 

21

 

 

30,283

 

 

(23)

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

151,079

 

 

$

168,837

 

 

(11)

%

 

$

101,636

 

 

49

%

 

 

 

 

 

 

 

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY DATA

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

2020

 

2019

 

Fourth
Quarter

 

 

 

Fourth

 

Third

 

Second

 

First

 

Fourth

 

20 vs '19

 

 

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Loans (NPL)

 

$

151,079

 

 

168,837

 

 

147,437

 

 

156,287

 

 

101,636

 

 

49

 

Impaired Loans Held for Sale

 

23,590

 

 

 

 

 

 

 

 

 

 

nm

 

Other Real Estate and Other Assets

 

17,394

 

 

23,280

 

 

30,242

 

 

33,679

 

 

35,810

 

 

(51)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Assets (NPAs)

 

192,063

 

 

192,117

 

 

177,679

 

 

189,966

 

 

137,446

 

 

40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses (ALL)

 

605,736

 

 

603,800

 

 

588,648

 

 

493,452

 

 

281,402

 

 

115

 

 

Reserve for Unfunded Commitments

 

47,785

 

 

60,794

 

 

61,029

 

 

38,420

 

 

1,375

 

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses (ACL)

 

653,521

 

 

664,594

 

 

649,677

 

 

531,872

 

 

282,777

 

 

131

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Charge-Offs - Quarter

 

22,139

 

 

28,466

 

 

24,046

 

 

20,061

 

 

8,821

 

 

 

 

Net Charge-Offs - YTD

 

94,712

 

 

72,573

 

 

44,107

 

 

20,061

 

 

57,612

 

 

 

 

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

 

0.23

%

 

0.29

 

 

0.24

 

 

0.21

 

 

0.10

 

 

 

 

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

 

0.24

 

 

0.25

 

 

0.23

 

 

0.21

 

 

0.16

 

 

 

 

NPLs / Loans

 

0.39

 

 

0.43

 

 

0.37

 

 

0.41

 

 

0.27

 

 

 

 

 

NPAs / Loans, ORE and specific other assets

 

0.50

 

 

0.49

 

 

0.44

 

 

0.50

 

 

0.37

 

 

 

 

ACL/Loans

 

1.71

 

 

1.68

 

 

1.63

 

 

1.39

 

 

0.76

 

 

 

 

ALL/Loans

 

1.58

 

 

1.53

 

 

1.47

 

 

1.29

 

 

0.76

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACL/NPLs

 

432.57

 

 

393.63

 

 

440.65

 

 

340.32

 

 

278.23

 

 

 

 

ALL/NPLs

 

400.94

 

 

357.62

 

 

399.25

 

 

315.74

 

 

276.87

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past Due Loans over 90 days and Still Accruing

 

$

4,117

 

 

7,512

 

 

8,391

 

 

6,398

 

 

15,943

 

 

(74)

 

 

As a Percentage of Loans Outstanding

 

0.01

%

 

0.02

 

 

0.02

 

 

0.02

 

 

0.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Past Due Loans and Still Accruing

 

$

47,349

 

 

57,316

 

 

46,390

 

 

83,235

 

 

123,793

 

 

(62)

 

 

As a Percentage of Loans Outstanding

 

0.12

%

 

0.14

 

 

0.12

 

 

0.22

 

 

0.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing Troubled Debt Restructurings (TDRs)

 

$

134,972

 

 

163,511

 

 

166,461

 

 

160,128

 

 

133,145

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Ratio is annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED CAPITAL INFORMATION (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,
2020

 

September 30,
2020

 

December 31,
2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital

 

$

4,572,173

 

 

4,450,547

 

 

4,280,604

 

 

 

 

 

 

 

 

Total Risk-Based Capital

 

5,604,043

 

 

5,536,918

 

 

5,123,381

 

 

 

 

 

 

 

 

Common Equity Tier 1 Capital Ratio

 

9.67

%

 

9.30

 

 

8.95

 

 

 

 

 

 

 

 

Tier 1 Capital Ratio

 

10.95

 

 

10.57

 

 

10.23

 

 

 

 

 

 

 

 

Total Risk-Based Capital Ratio

 

13.43

 

 

13.16

 

 

12.25

 

 

 

 

 

 

 

 

Tier 1 Leverage Ratio

 

8.50

 

 

8.48

 

 

9.16

 

 

 

 

 

 

 

 

Common Equity as a Percentage of Total Assets (2)

 

8.51

 

 

8.54

 

 

9.14

 

 

 

 

 

 

 

 

Tangible Common Equity Ratio (3) (5)

 

7.66

 

 

7.67

 

 

8.08

 

 

 

 

 

 

 

 

Book Value Per Common Share (4)

 

$

31.24

 

 

30.73

 

 

29.93

 

 

 

 

 

 

 

 

Tangible Book Value Per Common Share (3)

 

27.88

 

 

27.34

 

 

26.17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.