SNV
$43.44
Synovus Financial
($.59)
(1.34%)
Earnings Details
2nd Quarter June 2022
Thursday, July 21, 2022 6:30:00 AM
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Summary

Synovus Financial (SNV) Recent Earnings

Synovus Financial (SNV) reported 2nd Quarter June 2022 earnings of $1.17 per share on revenue of $551.0 million. The consensus earnings estimate was $1.10 per share on revenue of $521.2 million. Revenue grew 6.0% on a year-over-year basis.

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

Results
Reported Earnings
$1.17
Earnings Whisper
-
Consensus Estimate
$1.10
Reported Revenue
$551.0 Mil
Revenue Estimate
$521.2 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Synovus Announces Earnings for the Second Quarter 2022

Diluted Earnings per Share of $1.16 vs. $1.19 in 2Q21

Adjusted Diluted Earnings per Share of $1.17 vs. $1.20 in 2Q21

COLUMBUS, Ga.--(BUSINESS WIRE)--Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended June 30, 2022. "We are pleased with our second quarter results and financial metrics, which reflect the efforts of our team to expand client relationships and attract new business," said Synovus President and CEO Kevin Blair. "Revenues of $523 million, up 7 percent year-over-year, were driven by our fourth consecutive quarter of annualized double-digit loan growth, excluding PPP, and 22 basis points of margin expansion during the quarter. Our ongoing focus on growing core operating deposit relationships led to another quarter of account growth, as well as non-interest bearing deposit growth of $254 million. We also acknowledge the strength of our client base, with credit metrics at historically low levels and average operating liquidity up more than 40 percent on average compared to pre-pandemic levels. Despite the increasing uncertainty presented by economic risks, we have continued to prudently invest in our core businesses as well as new business initiatives, which will serve as ongoing sources of growth. I am confident in our ability to guide both our company and clients through the present environment while building an even stronger bank for the future."

Second Quarter 2022 Highlights

  • Net income available to common shareholders of $169.8 million, or $1.16 per diluted share, up $0.05 sequentially and down $0.03 compared to prior year.
    • Adjusted diluted EPS of $1.17, up $0.09 sequentially and down $0.03 compared to prior year. Year-over-year decline was primarily due to prior year benefit from reversal of provision for credit losses.
  • Total revenue of $522.7 million increased $33.7 million, or 7%, compared to prior year.
    • Total revenue, excluding Paycheck Protection program (PPP) fees, of $519.0 million increased $50.4 million, or 11%, compared to prior year.
  • Period-end loans increased $1.04 billion sequentially, and $1.15 billion, or 12% annualized, excluding PPP loans.
  • Credit quality metrics remain at historically low levels with sequential improvement in the NPA, NPL, and criticized/classified loans ratios.

Second Quarter Summary

 

Reported

 

Adjusted

(dollars in thousands)

2Q22

 

1Q22

 

2Q21

 

2Q22

 

1Q22

 

2Q21

Net income available to common shareholders

$

169,761

 

 

$

162,746

 

 

$

177,909

 

 

$

171,018

 

 

$

158,368

 

 

$

178,969

 

Diluted earnings per share

 

1.16

 

 

 

1.11

 

 

 

1.19

 

 

 

1.17

 

 

 

1.08

 

 

 

1.20

 

Total revenue

 

522,654

 

 

 

497,582

 

 

 

488,947

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

Total loans

 

41,204,780

 

 

 

40,169,150

 

 

 

38,236,018

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

Total deposits

 

49,034,700

 

 

 

48,656,244

 

 

 

47,171,962

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

Return on avg assets

 

1.26

%

 

 

1.22

%

 

 

1.36

%

 

 

1.27

%

 

 

1.19

%

 

 

1.37

%

Return on avg common equity

 

16.48

 

 

 

14.20

 

 

 

15.40

 

 

 

16.60

 

 

 

13.82

 

 

 

15.50

 

Return on avg tangible common equity

 

18.84

 

 

 

16.02

 

 

 

17.41

 

 

 

18.98

 

 

 

15.59

 

 

 

17.52

 

Net interest margin

 

3.22

 

 

 

3.00

 

 

 

3.02

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

Efficiency ratio-TE(1)

 

53.87

 

 

 

54.66

 

 

 

55.24

 

 

 

53.43

 

 

 

55.50

 

 

 

54.41

 

NCO ratio-QTD

 

0.16

 

 

 

0.19

 

 

 

0.28

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

NPA ratio

 

0.33

 

 

 

0.40

 

 

 

0.46

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

(1) Taxable equivalent

 

Balance Sheet

Loans*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

2Q22

 

1Q22

 

Linked
Quarter
Change

 

Linked
Quarter %
Change

 

2Q21

 

Year/Year
Change

 

Year/Year
% Change

Commercial & industrial

$

20,778.3

 

$

20,352.3

 

$

426.0

 

2

%

 

$

19,239.4

 

$

1,538.9

 

8

%

Commercial real estate

 

11,503.4

 

 

11,145.3

 

 

358.1

 

3

 

 

 

10,361.1

 

 

1,142.4

 

11

 

Consumer

 

8,923.0

 

 

8,671.5

 

 

251.5

 

3

 

 

 

8,635.5

 

 

287.5

 

3

 

Total loans

$

41,204.8

 

$

40,169.2

 

$

1,035.6

 

3

%

 

$

38,236.0

 

$

2,968.8

 

8

%

*Amounts may not total due to rounding

 
  • Total loans ended the quarter at $41.20 billion, up $1.04 billion sequentially, and $1.15 billion, or 12% annualized, excluding PPP loans.
  • Commercial and industrial (C&I) loans increased $426.0 million sequentially, led by broad based growth within our Wholesale Banking segment, partially offset by declines in PPP loan balances of $116.2 million.
  • CRE loans increased $358.1 million sequentially, led by multi-family loans in addition to our Specialty Healthcare group.
  • Consumer loans increased $251.5 million sequentially across multiple products including home equity and mortgage.

Deposits*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

2Q22

 

1Q22

 

Linked
Quarter
Change

 

Linked
Quarter %
Change

 

2Q21

 

Year/Year
Change

 

Year/Year
% Change

Non-interest-bearing DDA

$

15,781.1

 

$

15,526.7

 

$

254.4

 

 

2

%

 

$

14,342.6

 

$

1,438.5

 

 

10

%

Interest-bearing DDA

 

6,327.1

 

 

6,685.4

 

 

(358.3

)

 

(5

)

 

 

5,839.8

 

 

487.2

 

 

8

 

Money market

 

13,793.0

 

 

14,596.9

 

 

(803.9

)

 

(6

)

 

 

13,983.1

 

 

(190.1

)

 

(1

)

Savings

 

1,498.7

 

 

1,476.7

 

 

22.0

 

 

1

 

 

 

1,341.5

 

 

157.3

 

 

12

 

Public funds

 

5,863.9

 

 

6,048.7

 

 

(184.8

)

 

(3

)

 

 

5,804.9

 

 

59.0

 

 

1

 

Time deposits

 

2,147.8

 

 

2,284.2

 

 

(136.4

)

 

(6

)

 

 

2,891.1

 

 

(743.3

)

 

(26

)

Brokered deposits

 

3,623.1

 

 

2,037.7

 

 

1,585.4

 

 

78

 

 

 

2,969.0

 

 

654.2

 

 

22

 

Total deposits

$

49,034.7

 

$

48,656.2

 

$

378.5

 

 

1

%

 

$

47,172.0

 

$

1,862.7

 

 

4

%

*Amounts may not total due to rounding

 
  • Total deposits ended the quarter at $49.03 billion, up $378.5 million sequentially, impacted by seasonal effects and rate-driven outflows of $803.9 million and $358.3 million, respectively, in money-market and interest-bearing demand deposit accounts and offset by the use of brokered deposits as a cost-effective balance sheet and liquidity management tool.
    • Total non-interest-bearing deposits are now 35% of core deposits (total deposits excluding brokered deposits).
  • Total deposit costs increased 4 bps sequentially to 0.15% and were impacted by the rising rate environment.

Income Statement Summary**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data)

2Q22

 

1Q22

 

Linked
Quarter
Change

 

Linked
Quarter %
Change

 

2Q21

 

Year/Year
Change

 

Year/Year
% Change

Net interest income

$

425,388

 

$

392,248

 

$

33,140

 

 

8

%

 

$

381,860

 

 

$

43,528

 

 

11

%

Non-interest revenue

 

97,266

 

 

105,334

 

 

(8,068

)

 

(8

)

 

 

107,087

 

 

 

(9,821

)

 

(9

)

Non-interest expense

 

282,051

 

 

272,450

 

 

9,601

 

 

4

 

 

 

270,531

 

 

 

11,520

 

 

4

 

Provision for (reversal of) credit losses

 

12,688

 

 

11,400

 

 

1,288

 

 

11

 

 

 

(24,598

)

 

 

37,286

 

 

nm

 

Income before taxes

$

227,915

 

$

213,732

 

$

14,183

 

 

7

%

 

$

243,014

 

 

$

(15,099

)

 

(6

)%

Income tax expense

 

49,863

 

 

42,695

 

 

7,168

 

 

17

 

 

 

56,814

 

 

 

(6,951

)

 

(12

)

Preferred stock dividends

 

8,291

 

 

8,291

 

 

 

 

 

 

 

8,291

 

 

 

 

 

 

Net income available to common shareholders

$

169,761

 

$

162,746

 

$

7,015

 

 

4

%

 

$

177,909

 

 

$

(8,148

)

 

(5

)%

Weighted average common shares outstanding, diluted

 

146,315

 

 

146,665

 

 

(350

)

 

%

 

 

149,747

 

 

 

(3,432

)

 

(2

)%

Diluted earnings per share

$

1.16

 

$

1.11

 

$

0.05

 

 

5

 

 

$

1.19

 

 

$

(0.03

)

 

(3

)

Adjusted diluted earnings per share

 

1.17

 

 

1.08

 

 

0.09

 

 

8

 

 

 

1.20

 

 

 

(0.03

)

 

(3

)

** Amounts may not total due to rounding

 

Core Performance

  • Net interest income of $425.4 million was up $33.1 million sequentially and increased $43.5 million, or 11%, compared to prior year, driven by strong loan growth and higher rates.
    • PPP fees of $3.7 million, down $3.2 million sequentially and down $16.7 million year-over-year.
    • Net interest margin was 3.22%, up 22 bps sequentially, aided by higher interest rates, lower cash balances, and slower deposit repricing.
  • Non-interest revenue decreased $8.1 million, or 8%, sequentially and decreased $9.8 million, or 9%, compared to prior year.
    • Quarter-over-quarter and year-over-year declines were primarily related to a $7 million write-down on a minority fintech investment and a challenging mortgage banking environment, partially offset by increases in wealth revenue, capital markets, and card fee income categories.
  • Non-interest expense increased $9.6 million, or 4%, sequentially and increased $11.5 million, or 4%, compared to prior year. Adjusted non-interest expense increased $4.1 million, or 1%, sequentially and increased $15.4 million, or 6%, compared to prior year.
    • Year-over-year increase was primarily due to incentives and costs associated with elevated performance, merit increases, new business initiatives, and infrastructure investments.
  • Credit quality ratios remain near historical lows. Both the non-performing loan and asset ratios improved to 0.26% and 0.33%, respectively; the net charge-off ratio for the quarter was 0.16%, and total past dues were 0.14% of total loans outstanding.
  • Provision for credit losses of $12.7 million increased $1.3 million sequentially; allowance for credit losses coverage ratio (to loans) of 1.11% declined 4 bps sequentially. Drivers of the decline included our strong credit performance, including reduction of NPLs, and quality and mix of new originations, offset by an uncertain and generally negative economic outlook.
  • The effective tax rate was 21.88% for the quarter.

Capital Ratios

 

 

 

 

 

 

 

 

2Q22

 

1Q22

 

2Q21

Common equity Tier 1 capital (CET1) ratio

9.46

%

*

9.49

%

 

9.75

%

Tier 1 capital ratio

10.56

 

*

10.63

 

 

11.00

 

Total risk-based capital ratio

12.43

 

*

12.56

 

 

13.25

 

Tier 1 leverage ratio

9.03

 

*

8.87

 

 

8.72

 

Tangible common equity ratio

6.26

 

 

6.80

 

 

7.73

 

* Ratios are preliminary.

 

Capital

  • Preliminary CET1 ratio declined 3 bps during the quarter to 9.46%, and the preliminary total risk-based capital ratio of 12.43% declined 13 bps from the previous quarter as capital generated through earnings helped offset the impact of loan growth.

Second Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on July 21, 2022. 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 $57 billion in assets. Synovus provides commercial and retail banking and a full suite of specialized products and services, including private banking, treasury management, wealth management, mortgage services, premium finance, asset-based lending, structured lending, and international banking through 261 branches in Georgia, Alabama, South Carolina, Florida, and Tennessee. Synovus is a Great Place to Work-Certified Company and 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, 2021, 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 expense; adjusted tangible efficiency ratio; 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 expense; efficiency ratio-TE; 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. 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 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)

2Q22

 

1Q22

 

2Q21

 

 

 

 

 

 

Adjusted non-interest expense

 

 

 

 

 

Total non-interest expense

$

282,051

 

 

$

272,450

 

 

$

270,531

 

Subtract: Earnout liability adjustments

 

 

 

 

 

 

 

(750

)

Subtract/add: Restructuring charges

 

1,850

 

 

 

6,424

 

 

 

(415

)

Subtract: Valuation adjustment to Visa derivative

 

(3,500

)

 

 

 

 

 

 

Subtract: Loss on early extinguishment of debt, net

 

 

 

 

(677

)

 

 

 

Subtract/add: Fair value adjustment on non-qualified deferred compensation

 

3,240

 

 

 

1,295

 

 

 

(1,126

)

Adjusted non-interest expense

$

283,641

 

 

$

279,492

 

 

$

268,240

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

2Q22

 

1Q22

 

2Q21

Adjusted tangible efficiency ratio

 

 

 

 

 

Adjusted non-interest expense

$

283,641

 

 

$

279,492

 

 

$

268,240

 

Subtract: Amortization of intangibles

 

(2,118

)

 

 

(2,118

)

 

 

(2,379

)

Adjusted tangible non-interest expense

$

281,523

 

 

$

277,374

 

 

$

265,861

 

 

 

 

 

 

 

Net interest income

$

425,388

 

 

$

392,248

 

 

$

381,860

 

Add: Tax equivalent adjustment

 

960

 

 

 

865

 

 

 

791

 

Add: Total non-interest revenue

 

97,266

 

 

 

105,334

 

 

 

107,087

 

Total TE revenue

 

523,614

 

 

 

498,447

 

 

 

489,738

 

Subtract/add: Fair value adjustment on non-qualified deferred compensation

 

3,240

 

 

 

1,295

 

 

 

(1,126

)

Total adjusted revenue

$

526,854

 

 

$

499,742

 

 

$

488,612

 

Efficiency ratio-TE

 

53.87

%

 

 

54.66

%

 

 

55.24

%

Adjusted tangible efficiency ratio

 

53.43

 

 

 

55.50

 

 

 

54.41

 

 

 

 

 

 

 

Adjusted return on average assets

 

 

 

 

 

Net income

$

178,052

 

 

$

171,037

 

 

$

186,200

 

Add: Earnout liability adjustments

 

 

 

 

 

 

 

750

 

Add/subtract: Restructuring charges

 

(1,850

)

 

 

(6,424

)

 

 

415

 

Add: Valuation adjustment to Visa derivative

 

3,500

 

 

 

 

 

 

 

Add: Loss on early extinguishment of debt, net

 

 

 

 

677

 

 

 

 

Add/subtract: Tax effect of adjustments (1)

 

(393

)

 

 

1,369

 

 

 

(105

)

Adjusted net income

$

179,309

 

 

$

166,659

 

 

$

187,260

 

Net income annualized

$

714,165

 

 

$

693,650

 

 

$

746,846

 

Adjusted net income annualized

$

719,206

 

 

$

675,895

 

 

$

751,098

 

Total average assets

$

56,536,940

 

 

$

56,855,898

 

 

$

55,017,771

 

Return on average assets

 

1.26

%

 

 

1.22

%

 

 

1.36

%

Adjusted return on average assets

 

1.27

 

 

 

1.19

 

 

 

1.37

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

Net income available to common shareholders

$

169,761

 

 

$

162,746

 

 

$

177,909

 

Add: Earnout liability adjustments

 

 

 

 

 

 

 

750

 

Add/subtract: Restructuring charges

 

(1,850

)

 

 

(6,424

)

 

 

415

 

Add: Valuation adjustment to Visa derivative

 

3,500

 

 

 

 

 

 

 

Add: Loss on early extinguishment of debt, net

 

 

 

 

677

 

 

 

 

Add/subtract: Tax effect of adjustments (1)

 

(393

)

 

 

1,369

 

 

 

(105

)

Adjusted net income available to common shareholders

$

171,018

 

 

$

158,368

 

 

$

178,969

 

Weighted average common shares outstanding, diluted

 

146,315

 

 

 

146,665

 

 

 

149,747

 

Diluted earnings per share

$

1.16

 

 

$

1.11

 

 

$

1.19

 

Adjusted diluted earnings per share

 

1.17

 

 

 

1.08

 

 

 

1.20

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

2Q22

 

1Q22

 

2Q21

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

$

169,761

 

 

$

162,746

 

 

$

177,909

 

Add: Earnout liability adjustments

 

 

 

 

 

 

 

750

 

Add/subtract: Restructuring charges

 

(1,850

)

 

 

(6,424

)

 

 

415

 

Add: Valuation adjustment to Visa derivative

 

3,500

 

 

 

 

 

 

 

Add: Loss on early extinguishment of debt, net

 

 

 

 

677

 

 

 

 

Add/subtract: Tax effect of adjustments (1)

 

(393

)

 

 

1,369

 

 

 

(105

)

Adjusted net income available to common shareholders

$

171,018

 

 

$

158,368

 

 

$

178,969

 

 

 

 

 

 

 

Adjusted net income available to common shareholders annualized

$

685,951

 

 

$

642,270

 

 

$

717,843

 

Add: Amortization of intangibles, annualized net of tax

 

6,471

 

 

 

6,543

 

 

 

7,128

 

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

$

692,422

 

 

$

648,813

 

 

$

724,971

 

 

 

 

 

 

 

Net income available to common shareholders annualized

$

680,910

 

 

$

660,025

 

 

$

713,591

 

Add: Amortization of intangibles, annualized net of tax

 

6,471

 

 

 

6,543

 

 

 

7,128

 

Net income available to common shareholders excluding amortization of intangibles annualized

$

687,381

 

 

$

666,568

 

 

$

720,719

 

 

 

 

 

 

 

Total average shareholders' equity less preferred stock

$

4,132,536

 

 

$

4,647,426

 

 

$

4,632,568

 

Subtract: Goodwill

 

(452,390

)

 

 

(452,390

)

 

 

(452,390

)

Subtract: Other intangible assets, net

 

(32,387

)

 

 

(34,576

)

 

 

(41,399

)

Total average tangible shareholders' equity less preferred stock

$

3,647,759

 

 

$

4,160,460

 

 

$

4,138,779

 

Return on average common equity

 

16.48

%

 

 

14.20

%

 

 

15.40

%

Adjusted return on average common equity

 

16.60

 

 

 

13.82

 

 

 

15.50

 

Return on average tangible common equity

 

18.84

 

 

 

16.02

 

 

 

17.41

 

Adjusted return on average tangible common equity

 

18.98

 

 

 

15.59

 

 

 

17.52

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

June 30,
2022

 

March 31,
2022

 

December 31,
2021

 

June 30,
2021

 

 

 

 

 

 

 

 

Tangible common equity ratio

 

 

 

 

 

 

 

Total assets

$

57,382,745

 

 

$

56,419,549

 

 

$

57,317,226

 

 

$

54,938,659

 

Subtract: Goodwill

 

(452,390

)

 

 

(452,390

)

 

 

(452,390

)

 

 

(452,390

)

Subtract: Other intangible assets, net

 

(31,360

)

 

 

(33,478

)

 

 

(35,596

)

 

 

(40,354

)

Tangible assets

$

56,898,995

 

 

$

55,933,681

 

 

$

56,829,240

 

 

$

54,445,915

 

 

 

 

 

 

 

 

 

Total shareholders’ equity

$

4,584,438

 

 

$

4,824,635

 

 

$

5,296,800

 

 

$

5,237,714

 

Subtract: Goodwill

 

(452,390

)

 

 

(452,390

)

 

 

(452,390

)

 

 

(452,390

)

Subtract: Other intangible assets, net

 

(31,360

)

 

 

(33,478

)

 

 

(35,596

)

 

 

(40,354

)

Subtract: Preferred Stock, no par value

 

(537,145

)

 

 

(537,145

)

 

 

(537,145

)

 

 

(537,145

)

Tangible common equity

$

3,563,543

 

 

$

3,801,622

 

 

$

4,271,669

 

 

$

4,207,825

 

Total shareholders’ equity to total assets ratio

 

7.99

%

 

 

8.55

%

 

 

9.24

%

 

 

9.53

%

Tangible common equity ratio

 

6.26

 

 

 

6.80

 

 

 

7.52

 

 

 

7.73

 

 

 

 

 

 

 

 

 

(1) An assumed marginal tax rate of 23.8% for 2022 and 25.3% for 2021 was applied.

Synovus

 

 

 

 

 

 

 

 

 

INCOME STATEMENT DATA

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

Six Months Ended June 30,

 

 

 

 

 

 

 

 

2022

 

2021

 

22 vs '21

 

 

 

% Change

 

 

 

 

 

 

 

Interest income

$

869,834

 

 

$

822,560

 

 

6

%

Interest expense

 

52,199

 

 

 

66,844

 

 

(22

)

 

 

 

 

 

 

 

Net interest income

 

817,635

 

 

 

755,716

 

 

8

 

Provision for (reversal of) credit losses

 

24,088

 

 

 

(43,173

)

 

nm

 

 

 

 

 

 

 

 

Net interest income after provision for credit losses

 

793,547

 

 

 

798,889

 

 

(1

)

 

 

 

 

 

 

 

Non-interest revenue:

 

 

 

 

 

 

Service charges on deposit accounts

 

46,030

 

 

 

41,448

 

 

11

 

Fiduciary and asset management fees

 

40,377

 

 

 

36,759

 

 

10

 

Card fees

 

30,846

 

 

 

25,300

 

 

22

 

Brokerage revenue

 

29,898

 

 

 

26,899

 

 

11

 

Mortgage banking income

 

9,857

 

 

 

36,157

 

 

(73

)

Capital markets income

 

12,864

 

 

 

10,840

 

 

19

 

Income from bank-owned life insurance

 

15,722

 

 

 

16,031

 

 

(2

)

Investment securities gains (losses), net

 

 

 

 

(1,990

)

 

nm

 

Other non-interest revenue

 

17,006

 

 

 

26,599

 

 

(36

)

 

 

 

 

 

 

 

Total non-interest revenue

 

202,600

 

 

 

218,043

 

 

(7

)

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

Salaries and other personnel expense

 

325,747

 

 

 

322,044

 

 

1

 

Net occupancy, equipment, and software expense

 

86,076

 

 

 

82,959

 

 

4

 

Third-party processing and other services

 

42,947

 

 

 

44,451

 

 

(3

)

Professional fees

 

19,338

 

 

 

17,031

 

 

14

 

FDIC insurance and other regulatory fees

 

13,144

 

 

 

11,127

 

 

18

 

Restructuring charges

 

(8,274

)

 

 

946

 

 

nm

 

Other operating expenses

 

75,523

 

 

 

59,107

 

 

28

 

 

 

 

 

 

 

 

Total non-interest expense

 

554,501

 

 

 

537,665

 

 

3

 

 

 

 

 

 

 

 

Income before income taxes

 

441,646

 

 

 

479,267

 

 

(8

)

Income tax expense

 

92,558

 

 

 

105,975

 

 

(13

)

 

 

 

 

 

 

 

Net income

 

349,088

 

 

 

373,292

 

 

(6

)

 

 

 

 

 

 

 

Less: Preferred stock dividends

 

16,581

 

 

 

16,581

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

$

332,507

 

 

$

356,711

 

 

(7

)%

 

 

 

 

 

 

 

Net income per common share, basic

$

2.29

 

 

$

2.41

 

 

(5

)%

 

 

 

 

 

 

 

Net income per common share, diluted

 

2.27

 

 

 

2.38

 

 

(5

)

 

 

 

 

 

 

 

Cash dividends declared per common share

 

0.68

 

 

 

0.66

 

 

3

 

 

 

 

 

 

 

 

Return on average assets *

 

1.24

%

 

 

1.38

%

 

(14

) bps

Return on average common equity *

 

15.28

 

 

 

15.58

 

 

(30

)

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

145,301

 

 

 

148,289

 

 

(2

)%

Weighted average common shares outstanding, diluted

 

146,489

 

 

 

149,764

 

 

(2

)

 

 

 

 

 

 

 

nm - not meaningful

 

 

 

 

 

 

bps - basis points

 

 

 

 

 

 

* - ratios are annualized

 

 

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT DATA

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

2022

 

2021

 

Second
Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second
Quarter

 

First
Quarter

 

Fourth
Quarter

 

Third
Quarter

 

Second
Quarter

 

'22 vs '21

 

 

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

453,772

 

 

416,062

 

 

418,279

 

 

412,504

 

 

412,743

 

 

10

%

Interest expense

 

28,384

 

 

23,814

 

 

25,966

 

 

27,587

 

 

30,883

 

 

(8

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

425,388

 

 

392,248

 

 

392,313

 

 

384,917

 

 

381,860

 

 

11

 

Provision for (reversal of) credit losses

 

12,688

 

 

11,400

 

 

(55,210

)

 

(7,868

)

 

(24,598

)

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for credit losses

 

412,700

 

 

380,848

 

 

447,523

 

 

392,785

 

 

406,458

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

23,491

 

 

22,539

 

 

22,221

 

 

22,641

 

 

21,414

 

 

10

 

Fiduciary and asset management fees

 

20,100

 

 

20,277

 

 

20,602

 

 

19,786

 

 

18,805

 

 

7

 

Card fees

 

16,089

 

 

14,756

 

 

12,861

 

 

13,238

 

 

13,304

 

 

21

 

Brokerage revenue

 

15,243

 

 

14,655

 

 

14,795

 

 

14,745

 

 

13,926

 

 

9

 

Mortgage banking income

 

3,904

 

 

5,953

 

 

7,059

 

 

11,155

 

 

13,842

 

 

(72

)

Capital markets income

 

7,393

 

 

5,472

 

 

7,188

 

 

8,089

 

 

3,335

 

 

122

 

Income from bank-owned life insurance

 

9,165

 

 

6,556

 

 

15,168

 

 

6,820

 

 

7,188

 

 

28

 

Investment securities gains (losses), net

 

 

 

 

 

230

 

 

962

 

 

 

 

nm

 

Other non-interest revenue

 

1,881

 

 

15,126

 

 

16,944

 

 

17,519

 

 

15,273

 

 

(88

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest revenue

 

97,266

 

 

105,334

 

 

117,068

 

 

114,955

 

 

107,087

 

 

(9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and other personnel expense

 

161,063

 

 

164,684

 

 

167,018

 

 

160,364

 

 

160,567

 

 

 

Net occupancy, equipment, and software expense

 

43,199

 

 

42,877

 

 

42,780

 

 

43,483

 

 

41,825

 

 

3

 

Third-party processing and other services

 

21,952

 

 

20,996

 

 

22,791

 

 

19,446

 

 

24,419

 

 

(10

)

Professional fees

 

10,865

 

 

8,474

 

 

9,014

 

 

6,739

 

 

7,947

 

 

37

 

FDIC insurance and other regulatory fees

 

6,894

 

 

6,250

 

 

6,016

 

 

5,212

 

 

5,547

 

 

24

 

Restructuring charges

 

(1,850

)

 

(6,424

)

 

5,958

 

 

319

 

 

415

 

 

nm

 

Other operating expenses

 

39,928

 

 

35,593

 

 

41,630

 

 

31,469

 

 

29,811

 

 

34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest expense

 

282,051

 

 

272,450

 

 

295,207

 

 

267,032

 

 

270,531

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

227,915

 

 

213,732

 

 

269,384

 

 

240,708

 

 

243,014

 

 

(6

)

Income tax expense

 

49,863

 

 

42,695

 

 

68,983

 

 

53,935

 

 

56,814

 

 

(12

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

178,052

 

 

171,037

 

 

200,401

 

 

186,773

 

 

186,200

 

 

(4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Preferred stock dividends

 

8,291

 

 

8,291

 

 

8,291

 

 

8,291

 

 

8,291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

$

169,761

 

 

162,746

 

 

192,110

 

 

178,482

 

 

177,909

 

 

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, basic

$

1.17

 

 

1.12

 

 

1.32

 

 

1.22

 

 

1.20

 

 

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, diluted

 

1.16

 

 

1.11

 

 

1.31

 

 

1.21

 

 

1.19

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

0.34

 

 

0.34

 

 

0.33

 

 

0.33

 

 

0.33

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets *

 

1.26

%

 

1.22

 

 

1.40

 

 

1.34

 

 

1.36

 

 

(10

 

) bps

Return on average common equity *

 

16.48

 

 

14.20

 

 

16.11

 

 

14.96

 

 

15.40

 

 

108

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

145,328

 

 

145,273

 

 

145,316

 

 

146,308

 

 

148,113

 

 

(2

)%

Weighted average common shares outstanding, diluted

 

146,315

 

 

146,665

 

 

146,793

 

 

147,701

 

 

149,747

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

nm - not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

bps - basis points

 

 

 

 

 

 

 

 

 

 

 

 

* - ratios are annualized

 

 

 

 

 

 

 

 

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET DATA

 

June 30, 2022

 

December 31, 2021

 

June 30, 2021

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Cash and due from banks

 

$

583,323

 

 

$

432,925

 

 

$

560,396

 

Interest-bearing funds with Federal Reserve Bank

 

 

1,023,030

 

 

 

2,479,006

 

 

 

2,598,213

 

Interest earning deposits with banks

 

 

29,139

 

 

 

25,535

 

 

 

21,513

 

Federal funds sold and securities purchased under resale agreements

 

 

29,568

 

 

 

72,387

 

 

 

82,554

 

Cash, cash equivalents, and restricted cash

 

 

1,665,060

 

 

 

3,009,853

 

 

 

3,262,676

 

 

 

 

 

 

 

 

Investment securities available for sale, at fair value

 

 

9,889,850

 

 

 

10,918,329

 

 

 

9,442,170

 

Loans held for sale ($76,864, $108,198, and $202,216 measured at fair value, respectively)

 

 

917,679

 

 

 

750,642

 

 

 

750,916

 

 

 

 

 

 

 

 

Loans, net of deferred fees and costs

 

 

41,204,780

 

 

 

39,311,958

 

 

 

38,236,018

 

Allowance for loan losses

 

 

(407,837

)

 

 

(427,597

)

 

 

(516,708

)

Loans, net

 

 

40,796,943

 

 

 

38,884,361

 

 

 

37,719,310

 

 

 

 

 

 

 

 

Cash surrender value of bank-owned life insurance

 

 

1,078,703

 

 

 

1,068,616

 

 

 

1,059,235

 

Premises, equipment, and software, net

 

 

383,060

 

 

 

407,241

 

 

 

446,447

 

Goodwill

 

 

452,390

 

 

 

452,390

 

 

 

452,390

 

Other intangible assets, net

 

 

31,360

 

 

 

35,596

 

 

 

40,354

 

Other assets

 

 

2,167,700

 

 

 

1,790,198

 

 

 

1,765,161

 

Total assets

 

$

57,382,745

 

 

$

57,317,226

 

 

$

54,938,659

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Non-interest-bearing deposits

 

$

16,876,710

 

 

$

16,392,653

 

 

$

15,345,629

 

Interest-bearing deposits

 

 

32,157,990

 

 

 

33,034,623

 

 

 

31,826,333

 

 

 

 

 

 

 

 

Total deposits

 

 

49,034,700

 

 

 

49,427,276

 

 

 

47,171,962

 

 

 

 

 

 

 

 

Federal funds purchased and securities sold under repurchase agreements

 

 

345,242

 

 

 

264,133

 

 

 

194,786

 

Long-term debt

 

 

1,804,104

 

 

 

1,204,229

 

 

 

1,203,293

 

Other liabilities

 

 

1,614,261

 

 

 

1,124,788

 

 

 

1,130,904

 

Total liabilities

 

 

52,798,307

 

 

 

52,020,426

 

 

 

49,700,945

 

 

 

 

 

 

 

 

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 170,012,527, 169,383,758, and 169,107,609; outstanding 145,357,669, 145,010,086, and 147,071,532

 

 

170,013

 

 

 

169,384

 

 

 

169,108

 

Additional paid-in capital

 

 

3,908,118

 

 

 

3,894,109

 

 

 

3,872,949

 

Treasury stock, at cost – 24,654,858, 24,373,672, and 22,036,077 shares

 

 

(944,484

)

 

 

(931,497

)

 

 

(824,197

)

Accumulated other comprehensive income (loss), net

 

 

(1,026,705

)

 

 

(82,321

)

 

 

45,726

 

Retained earnings

 

 

1,940,351

 

 

 

1,709,980

 

 

 

1,436,983

 

Total shareholders’ equity

 

 

4,584,438

 

 

 

5,296,800

 

 

 

5,237,714

 

Total liabilities and shareholders' equity

 

$

57,382,745

 

 

$

57,317,226

 

 

$

54,938,659

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES, INTEREST, AND YIELDS/RATES

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter 2022

 

First Quarter 2022

 

Second Quarter 2021

(dollars in thousands)

Average
Balance

 

Interest

 

Yield/
Rate

 

Average
Balance

 

Interest

 

Yield/
Rate

 

Average
Balance

 

Interest

 

Yield/
Rate

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans (1) (2) (3)

$

31,870,387

 

 

$

308,442

 

3.88

%

 

$

30,756,752

 

 

$

280,588

 

3.70

%

 

$

29,936,751

 

 

$

287,677

 

3.85

%

Consumer loans (1) (2)

 

8,720,488

 

 

 

83,826

 

3.86

 

 

 

8,594,009

 

 

 

81,368

 

3.81

 

 

 

8,559,726

 

 

 

84,402

 

3.94

 

Less: Allowance for loan losses

 

(415,372

)

 

 

 

 

 

 

(423,953

)

 

 

 

 

 

 

(561,242

)

 

 

 

 

Loans, net

 

40,175,503

 

 

 

392,268

 

3.92

 

 

 

38,926,808

 

 

 

361,956

 

3.76

 

 

 

37,935,235

 

 

 

372,079

 

3.93

 

Investment securities available for sale

 

11,153,091

 

 

 

50,312

 

1.81

 

 

 

11,259,800

 

 

 

47,250

 

1.68

 

 

 

9,184,691

 

 

 

33,298

 

1.45

 

Trading account assets

 

11,987

 

 

 

73

 

2.44

 

 

 

9,078

 

 

 

39

 

1.73

 

 

 

2,831

 

 

 

8

 

1.15

 

Other earning assets(4)

 

813,028

 

 

 

1,660

 

0.81

 

 

 

1,919,531

 

 

 

815

 

0.17

 

 

 

2,705,819

 

 

 

740

 

0.11

 

FHLB and Federal Reserve Bank stock

 

179,837

 

 

 

1,820

 

4.05

 

 

 

160,065

 

 

 

685

 

1.71

 

 

 

159,340

 

 

 

800

 

2.01

 

Mortgage loans held for sale

 

85,299

 

 

 

921

 

4.32

 

 

 

103,887

 

 

 

882

 

3.40

 

 

 

242,940

 

 

 

1,859

 

3.06

 

Other loans held for sale

 

725,762

 

 

 

7,678

 

4.19

 

 

 

597,062

 

 

 

5,300

 

3.55

 

 

 

615,301

 

 

 

4,750

 

3.05

 

Total interest earning assets

 

53,144,507

 

 

$

454,732

 

3.43

%

 

 

52,976,231

 

 

$

416,927

 

3.18

%

 

 

50,846,157

 

 

$

413,534

 

3.26

%

Cash and due from banks

 

538,647

 

 

 

 

 

 

 

548,684

 

 

 

 

 

 

 

571,561

 

 

 

 

 

Premises and equipment

 

385,457

 

 

 

 

 

 

 

398,774

 

 

 

 

 

 

 

452,652

 

 

 

 

 

Other real estate

 

11,439

 

 

 

 

 

 

 

11,759

 

 

 

 

 

 

 

1,406

 

 

 

 

 

Cash surrender value of bank-owned life insurance

 

1,077,231

 

 

 

 

 

 

 

1,070,886

 

 

 

 

 

 

 

1,055,663

 

 

 

 

 

Other assets(5)

 

1,379,659

 

 

 

 

 

 

 

1,849,564

 

 

 

 

 

 

 

2,090,332

 

 

 

 

 

Total assets

$

56,536,940

 

 

 

 

 

 

$

56,855,898

 

 

 

 

 

 

$

55,017,771

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$

9,513,334

 

 

$

3,598

 

0.15

%

 

$

9,549,527

 

 

$

2,372

 

0.10

%

 

$

8,601,262

 

 

$

2,441

 

0.11

%

Money market accounts

 

15,328,395

 

 

 

6,850

 

0.18

 

 

 

16,045,627

 

 

 

5,349

 

0.14

 

 

 

15,476,262

 

 

 

7,181

 

0.19

 

Savings deposits

 

1,506,195

 

 

 

72

 

0.02

 

 

 

1,460,648

 

 

 

67

 

0.02

 

 

 

1,333,297

 

 

 

55

 

0.02

 

Time deposits

 

2,829,684

 

 

 

1,688

 

0.24

 

 

 

3,009,795

 

 

 

2,138

 

0.29

 

 

 

3,792,382

 

 

 

4,894

 

0.52

 

Brokered deposits

 

2,878,536

 

 

 

6,293

 

0.88

 

 

 

2,788,124

 

 

 

3,733

 

0.54

 

 

 

3,057,607

 

 

 

4,799

 

0.63

 

Federal funds purchased and securities sold under repurchase agreements

 

246,737

 

 

 

219

 

0.35

 

 

 

194,352

 

 

 

11

 

0.02

 

 

 

204,053

 

 

 

35

 

0.07

 

Other short-term borrowings

 

478,469

 

 

 

896

 

0.74

 

 

 

4,653

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

878,413

 

 

 

8,768

 

3.99

 

 

 

982,423

 

 

 

10,144

 

4.13

 

 

 

1,203,038

 

 

 

11,478

 

3.82

 

Total interest-bearing liabilities

 

33,659,763

 

 

$

28,384

 

0.33

%

 

 

34,035,149

 

 

$

23,814

 

0.28

%

 

 

33,667,901

 

 

$

30,883

 

0.36

%

Non-interest-bearing demand deposits

 

16,959,850

 

 

 

 

 

 

 

16,491,643

 

 

 

 

 

 

 

15,088,836

 

 

 

 

 

Other liabilities

 

1,247,646

 

 

 

 

 

 

 

1,144,535

 

 

 

 

 

 

 

1,091,321

 

 

 

 

 

Shareholders' equity

 

4,669,681

 

 

 

 

 

 

 

5,184,571

 

 

 

 

 

 

 

5,169,713

 

 

 

 

 

Total liabilities and shareholders' equity

$

56,536,940

 

 

 

 

 

 

$

56,855,898

 

 

 

 

 

 

$

55,017,771

 

 

 

 

 

Net interest income and net interest margin, taxable equivalent (6)

 

 

$

426,348

 

3.22

%

 

 

 

$

393,113

 

3.00

%

 

 

 

$

382,651

 

3.02

%

Less: taxable-equivalent adjustment

 

 

 

960

 

 

 

 

 

 

865

 

 

 

 

 

 

791

 

 

Net interest income

 

 

$

425,388

 

 

 

 

 

$

392,248

 

 

 

 

 

$

381,860

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Average loans are shown net of deferred fees and costs. NPLs are included.

(2)

Interest income includes net loan fees as follows: Second Quarter 2022 — $13.0 million, First Quarter 2022 — $20.7 million, and Second Quarter 2021 — $28.5 million.

(3)

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

(4)

Includes interest-bearing funds with Federal Reserve Bank, interest earning deposits with banks, and federal funds sold and securities purchased under resale agreements.

(5)

Includes average net unrealized gains/(losses) on investment securities available for sale of $(923.1) million, $(247.4) million, and $37.0 million for the Second Quarter 2022, First Quarter 2022, and Second Quarter 2021, respectively.

(6)

The net interest margin is calculated by dividing annualized net interest income-taxable equivalent by average total interest earning assets.

Synovus

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES, INTEREST, AND YIELDS/RATES

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

2022

 

2021

(dollars in thousands)

Average Balance

 

Interest

 

Yield/
Rate

 

Average Balance

 

Interest

 

Yield/
Rate

Assets

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

Commercial loans (1) (2) (3)

$

31,316,646

 

 

$

589,029

 

3.79

%

 

$

29,930,734

 

 

$

578,877

 

3.90

%

Consumer loans (1) (2)

 

8,657,598

 

 

 

165,194

 

3.83

 

 

 

8,424,423

 

 

 

166,466

 

3.97

 

Less: Allowance for loan losses

 

(419,639

)

 

 

 

 

 

 

(580,450

)

 

 

 

 

Loans, net

 

39,554,605

 

 

 

754,223

 

3.84

 

 

 

37,774,707

 

 

 

745,343

 

3.97

 

Investment securities available for sale

 

11,206,150

 

 

 

97,562

 

1.74

 

 

 

8,813,191

 

 

 

62,755

 

1.42

 

Trading account assets

 

10,540

 

 

 

112

 

2.13

 

 

 

2,947

 

 

 

30

 

2.01

 

Other earning assets(4)

 

1,363,223

 

 

 

2,475

 

0.36

 

 

 

2,771,576

 

 

 

1,458

 

0.10

 

FHLB and Federal Reserve Bank stock

 

170,006

 

 

 

2,505

 

2.95

 

 

 

158,503

 

 

 

1,468

 

1.85

 

Mortgage loans held for sale

 

94,542

 

 

 

1,803

 

3.81

 

 

 

244,940

 

 

 

3,516

 

2.87

 

Other loans held for sale

 

661,768

 

 

 

12,978

 

3.90

 

 

 

637,901

 

 

 

9,555

 

2.98

 

Total interest earning assets

 

53,060,834

 

 

$

871,658

 

3.31

%

 

 

50,403,765

 

 

$

824,125

 

3.29

%

Cash and due from banks

 

543,638

 

 

 

 

 

 

 

545,295

 

 

 

 

 

Premises and equipment

 

392,079

 

 

 

 

 

 

 

456,537

 

 

 

 

 

Other real estate

 

11,598

 

 

 

 

 

 

 

1,613

 

 

 

 

 

Cash surrender value of bank-owned life insurance

 

1,074,076

 

 

 

 

 

 

 

1,053,603

 

 

 

 

 

Other assets(5)

 

1,613,313

 

 

 

 

 

 

 

2,144,615

 

 

 

 

 

Total assets

$

56,695,538

 

 

 

 

 

 

$

54,605,428

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$

9,531,330

 

 

$

5,970

 

0.13

%

 

$

8,586,092

 

 

$

5,414

 

0.13

%

Money market accounts

 

15,685,030

 

 

 

12,199

 

0.16

 

 

 

15,412,941

 

 

 

15,911

 

0.21

 

Savings deposits

 

1,483,547

 

 

 

139

 

0.02

 

 

 

1,276,608

 

 

 

105

 

0.02

 

Time deposits

 

2,919,242

 

 

 

3,826

 

0.26

 

 

 

3,972,840

 

 

 

11,936

 

0.61

 

Brokered deposits

 

2,833,580

 

 

 

10,026

 

0.71

 

 

 

3,212,608

 

 

 

11,023

 

0.69

 

Federal funds purchased and securities sold under repurchase agreements

 

220,689

 

 

 

230

 

0.21

 

 

 

206,735

 

 

 

69

 

0.07

 

Other short-term borrowings

 

242,870

 

 

 

896

 

0.73

 

 

 

 

 

 

 

 

Long-term debt

 

930,131

 

 

 

18,913

 

4.07

 

 

 

1,202,827

 

 

 

22,386

 

3.73

 

Total interest-bearing liabilities

 

33,846,419

 

 

$

52,199

 

0.31

%

 

 

33,870,651

 

 

$

66,844

 

0.39

%

Non-interest-bearing demand deposits

 

16,727,040

 

 

 

 

 

 

 

14,443,645

 

 

 

 

 

Other liabilities

 

1,196,375

 

 

 

 

 

 

 

1,138,073

 

 

 

 

 

Shareholders' equity

 

4,925,704

 

 

 

 

 

 

 

5,153,059

 

 

 

 

 

Total liabilities and shareholders' equity

$

56,695,538

 

 

 

 

 

 

$

54,605,428

 

 

 

 

 

Net interest income, taxable equivalent net interest margin (6)

 

 

$

819,459

 

3.11

%

 

 

 

$

757,281

 

3.03

%

Less: taxable-equivalent adjustment

 

 

 

1,824

 

 

 

 

 

 

1,565

 

 

Net interest income

 

 

$

817,635

 

 

 

 

 

$

755,716

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Average loans are shown net of deferred fees and costs. NPLs are included.

(2)

Interest income includes net loan fees as follows: 2022 — $33.7 million and 2021 — $60.4 million.

(3)

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

(4)

Includes interest-bearing funds with Federal Reserve Bank, interest earning deposits with banks, and federal funds sold and securities purchased under resale agreements.

(5)

Includes average net unrealized gains/(losses) on investment securities available for sale of $(587.1) million and $76.3 million for the six months ended June 30, 2022 and 2021, respectively.

(6)

The net interest margin is calculated by dividing net interest income-TE by average total interest earning assets.

Synovus

 

 

 

 

 

 

 

 

 

 

LOANS OUTSTANDING BY TYPE

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

Total Loans

 

Total Loans

 

Linked Quarter

 

Total Loans

 

Year/Year

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

Loan Type

 

June 30, 2022

 

March 31, 2022

 

% Change

 

June 30, 2021

 

% Change

Commercial, Financial, and Agricultural

 

$

13,018,089

 

$

12,659,611

 

3

%

 

$

12,174,835

 

7

%

Owner-Occupied

 

 

7,760,236

 

 

7,692,714

 

1

 

 

 

7,064,599

 

10

 

Total Commercial & Industrial

 

 

20,778,325

 

 

20,352,325

 

2

 

 

 

19,239,434

 

8

 

Multi-Family

 

 

2,547,706

 

 

2,288,497

 

11

 

 

 

2,086,641

 

22

 

Hotels

 

 

1,597,930

 

 

1,593,983

 

 

 

 

1,411,443

 

13

 

Office Buildings

 

 

2,680,399

 

 

2,521,381

 

6

 

 

 

2,340,378

 

15

 

Shopping Centers

 

 

1,458,902

 

 

1,500,768

 

(3

)

 

 

1,611,249

 

(9

)

Warehouses

 

 

811,738

 

 

814,756

 

 

 

 

657,699

 

23

 

Other Investment Property

 

 

1,311,373

 

 

1,327,760

 

(1

)

 

 

1,110,603

 

18

 

Total Investment Properties

 

 

10,408,048

 

 

10,047,145

 

4

 

 

 

9,218,013

 

13

 

1-4 Family Construction

 

 

234,379

 

 

229,038

 

2

 

 

 

174,009

 

35

 

1-4 Family Investment Mortgage

 

 

407,476

 

 

391,636

 

4

 

 

 

462,335

 

(12

)

Total 1-4 Family Properties

 

 

641,855

 

 

620,674

 

3

 

 

 

636,344

 

1

 

Commercial Development

 

 

109,764

 

 

102,757

 

7

 

 

 

120,683

 

(9

)

Residential Development

 

 

156,816

 

 

193,580

 

(19

)

 

 

164,950

 

(5

)

Land Acquisition

 

 

186,934

 

 

181,162

 

3

 

 

 

221,061

 

(15

)

Land and Development

 

 

453,514

 

 

477,499

 

(5

)

 

 

506,694

 

(10

)

Total Commercial Real Estate

 

 

11,503,417

 

 

11,145,318

 

3

 

 

 

10,361,051

 

11

 

Consumer Mortgages

 

 

5,124,523

 

 

5,052,003

 

1

 

 

 

5,200,718

 

(1

)

Home Equity

 

 

1,579,218

 

 

1,416,341

 

11

 

 

 

1,395,717

 

13

 

Credit Cards

 

 

194,290

 

 

188,247

 

3

 

 

 

196,207

 

(1

)

Other Consumer Loans

 

 

2,025,007

 

 

2,014,916

 

1

 

 

 

1,842,891

 

10

 

Total Consumer

 

 

8,923,038

 

 

8,671,507

 

3

 

 

 

8,635,533

 

3

 

Total

 

$

41,204,780

 

$

40,169,150

 

3

%

 

$

38,236,018

 

8

%

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING LOANS COMPOSITION

 

 

 

 

 

 

 

 

(Unaudited)

 

Total
Non-performing Loans

 

Total
Non-performing Loans

 

Linked Quarter

 

Total
Non-performing Loans

 

Year/Year

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

Loan Type

 

June 30, 2022

 

March 31, 2022

 

% Change

 

June 30, 2021

 

% Change

Commercial, Financial, and Agricultural

 

$

48,601

 

$

64,888

 

(25

)%

 

$

70,943

 

(31

)%

Owner-Occupied

 

 

11,398

 

 

10,854

 

5

 

 

 

13,155

 

(13

)

Total Commercial & Industrial

 

 

59,999

 

 

75,742

 

(21

)

 

 

84,098

 

(29

)

Multi-Family

 

 

2,598

 

 

2,639

 

(2

)

 

 

2,406

 

8

 

Office Buildings

 

 

1,796

 

 

2,205

 

(19

)

 

 

1,618

 

11

 

Shopping Centers

 

 

750

 

 

915

 

(18

)

 

 

124

 

505

 

Warehouses

 

 

924

 

 

482

 

92

 

 

 

218

 

324

 

Other Investment Property

 

 

1,302

 

 

1,047

 

24

 

 

 

408

 

219

 

Total Investment Properties

 

 

7,370

 

 

7,288

 

1

 

 

 

4,774

 

54

 

1-4 Family Construction

 

 

55

 

 

55

 

 

 

 

548

 

(90

)

1-4 Family Investment Mortgage

 

 

3,063

 

 

2,187

 

40

 

 

 

1,927

 

59

 

Total 1-4 Family Properties

 

 

3,118

 

 

2,242

 

39

 

 

 

2,475

 

26

 

Commercial Development

 

 

432

 

 

625

 

(31

)

 

 

560

 

(23

)

Residential Development

 

 

399

 

 

407

 

(2

)

 

 

451

 

(12

)

Land Acquisition

 

 

1,093

 

 

1,021

 

7

 

 

 

1,029

 

6

 

Land and Development

 

 

1,924

 

 

2,053

 

(6

)

 

 

2,040

 

(6

)

Total Commercial Real Estate

 

 

12,412

 

 

11,583

 

7

 

 

 

9,289

 

34

 

Consumer Mortgages

 

 

22,857

 

 

29,997

 

(24

)

 

 

51,376

 

(56

)

Home Equity

 

 

8,100

 

 

8,854

 

(9

)

 

 

8,952

 

(10

)

Other Consumer Loans

 

 

5,656

 

 

5,955

 

(5

)

 

 

7,313

 

(23

)

Total Consumer

 

 

36,613

 

 

44,806

 

(18

)

 

 

67,641

 

(46

)

Total

 

$

109,024

 

$

132,131

 

(17

)%

 

$

161,028

 

(32

)%

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY DATA

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

2022

 

2021

 

Second Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second

 

First

 

Fourth

 

Third

 

Second

 

'22 vs '21

 

 

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Loans (NPLs)

 

$

109,024

 

 

132,131

 

131,042

 

155,465

 

161,028

 

(32

)%

 

Impaired Loans Held for Sale

 

 

 

 

 

 

 

 

nm

 

 

Other Real Estate and Other Assets

 

 

26,759

 

 

26,759

 

27,137

 

16,883

 

16,806

 

59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Assets (NPAs)

 

 

135,783

 

 

158,890

 

158,179

 

172,348

 

177,834

 

(24

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses (ALL)

 

 

407,837

 

 

414,956

 

427,597

 

492,243

 

516,708

 

(21

)

 

Reserve for Unfunded Commitments

 

 

50,559

 

 

47,317

 

41,885

 

42,971

 

46,890

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses (ACL)

 

 

458,396

 

 

462,273

 

469,482

 

535,214

 

563,598

 

(19

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Charge-Offs - Quarter

 

 

16,566

 

 

18,609

 

10,522

 

20,516

 

26,546

 

 

 

Net Charge-Offs - YTD

 

 

35,175

 

 

18,609

 

77,788

 

67,266

 

46,750

 

 

 

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

 

 

0.16

%

 

0.19

 

0.11

 

0.22

 

0.28

 

 

 

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

 

 

0.18

 

 

0.19

 

0.20

 

0.24

 

0.24

 

 

 

NPLs / Loans

 

 

0.26

 

 

0.33

 

0.33

 

0.41

 

0.42

 

 

 

NPAs / Loans, ORE and specific other assets

 

 

0.33

 

 

0.40

 

0.40

 

0.45

 

0.46

 

 

 

ACL/Loans

 

 

1.11

 

 

1.15

 

1.19

 

1.40

 

1.47

 

 

 

ALL/Loans

 

 

0.99

 

 

1.03

 

1.09

 

1.28

 

1.35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACL/NPLs

 

 

420.45

 

 

349.86

 

358.27

 

344.27

 

350.00

 

 

 

ALL/NPLs

 

 

374.08

 

 

314.05

 

326.31

 

316.63

 

320.88

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past Due Loans over 90 days and Still Accruing

 

$

2,251

 

 

3,067

 

6,770

 

5,960

 

4,415

 

(49

)

 

As a Percentage of Loans Outstanding

 

 

0.01

%

 

0.01

 

0.02

 

0.02

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Past Due Loans and Still Accruing

 

$

56,160

 

 

45,385

 

57,565

 

60,817

 

49,321

 

14

 

 

As a Percentage of Loans Outstanding

 

 

0.14

%

 

0.11

 

0.15

 

0.16

 

0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing Troubled Debt Restructurings (TDRs)

 

$

164,101

 

 

145,957

 

119,804

 

126,055

 

124,528

 

32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Ratio is annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED CAPITAL INFORMATION (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2022

 

December 31, 2021

 

June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Capital Ratio

 

 

9.46

%

 

9.50

 

9.75

 

 

 

 

 

 

 

Tier 1 Capital Ratio

 

 

10.56

 

 

10.66

 

11.00

 

 

 

 

 

 

 

Total Risk-Based Capital Ratio

 

 

12.43

 

 

12.61

 

13.25

 

 

 

 

 

 

 

Tier 1 Leverage Ratio

 

 

9.03

 

 

8.72

 

8.72

 

 

 

 

 

 

 

Total Shareholders' Equity as a Percentage of Total Assets

 

 

7.99

 

 

9.24

 

9.53

 

 

 

 

 

 

 

Tangible Common Equity Ratio (2) (4)

 

 

6.26

 

 

7.52

 

7.73

 

 

 

 

 

 

 

Book Value Per Common Share (3)

 

$

27.84

 

 

32.82

 

31.96

 

 

 

 

 

 

 

Tangible Book Value Per Common Share (2)

 

 

24.52

 

 

29.46

 

28.61

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Current quarter regulatory capital information is preliminary.

 

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

 

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

 

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

 

Media Contact
Audria Belton
Media Relations
(706) 644-0528

Investor Contact
Cal Evans
Investor Relations
(706) 641-6500

Source: Synovus Financial Corp.