SNV
$40.90
Synovus Financial
($.60)
(1.45%)
Earnings Details
2nd Quarter June 2021
Tuesday, July 20, 2021 6:30:00 AM
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Summary

Synovus Financial Beats

Synovus Financial (SNV) reported 2nd Quarter June 2021 earnings of $1.20 per share on revenue of $519.8 million. The consensus earnings estimate was $1.03 per share on revenue of $489.8 million. The Earnings Whisper number was $1.16 per share. Revenue fell 16.8% compared to the same quarter a year ago.

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

Results
Reported Earnings
$1.20
Earnings Whisper
$1.16
Consensus Estimate
$1.03
Reported Revenue
$519.8 Mil
Revenue Estimate
$489.8 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

 Synovus Announces Earnings for the Second Quarter 2021

 Diluted Earnings per Share of $1.19 vs. $0.57 in 2Q20

Adjusted Diluted Earnings per Share of $1.20 vs. $0.23 in 2Q20

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

Second Quarter 2021 Highlights

  • Net income available to common shareholders of $177.9 million or $1.19 per diluted share, unchanged sequentially and up $0.62 compared to prior year.
    • Adjusted diluted EPS of $1.20, down $0.01 sequentially and up $0.97 compared to prior year.
  • Period-end loans decreased $569.1 million or 1% sequentially.
    • Paycheck Protection Program (PPP) loans declined $763.4 million and third-party consumer loan balances increased $272.5 million sequentially.
  • Core transaction deposits (non-interest bearing, NOW/savings, and money market deposits excluding public and brokered funds) increased $702.4 million or 2% sequentially.
  • Total deposit costs of 0.16% down 6 bps sequentially due to ongoing repricing and product remixing.
  • Net interest income of $381.9 million increased $8.0 million sequentially as asset growth, reduced deposit costs, and a higher day count more than offset the reduction in PPP fee income.
    • Net interest margin of 3.02%, down 2 bps sequentially.
  • Non-interest revenue decreased $3.9 million sequentially as broad-based growth partially offset the normalization of net mortgage revenues.
    • Adjusted non-interest revenue decreased $6.2 million.
  • Non-interest expense increased $3.4 million sequentially and decreased $13.6 million compared to prior year.
    • Adjusted non-interest expense increased $2.4 million sequentially as the benefits from various efficiency initiatives were offset by higher commissions, incentives, and expenses primarily related to additional PPP forgiveness and expenses associated with higher third-party consumer loan balances.
  • Reversal of provision for credit losses of $24.6 million, primarily from a more favorable economic outlook.
    • Allowance for credit losses coverage ratio (to loans) of 1.47%, or 1.54% excluding PPP loans.
  • Credit quality metrics remain relatively stable, near historical lows. The non-performing asset ratio fell 4 bps to 0.46% sequentially; criticized and classified loans declined 14% compared to prior quarter.
  • Preliminary CET1 ratio increased 1 bp sequentially to 9.75%, with strong core earnings helping offset the decline from $92.5 million in share repurchases at an average price of $47.51, reducing average diluted outstanding shares from the prior quarter by 1.3%.

Second Quarter Summary

 

Reported

 

Adjusted

(dollars in thousands)

2Q21

 

1Q21

 

2Q20

 

2Q21

 

1Q21

 

2Q20

Net income available to common shareholders

$

177,909

 

 

$

178,802

 

 

$

84,901

 

 

$

178,969

 

 

$

180,685

 

 

$

34,015

 

Diluted earnings per share

1.19

 

 

1.19

 

 

0.57

 

 

1.20

 

 

1.21

 

 

0.23

 

Total loans

38,236,018

 

 

38,805,101

 

 

39,914,297

 

 

N/A

 

 

N/A

 

 

N/A

 

Total deposits

47,171,962

 

 

47,368,951

 

 

44,194,580

 

 

N/A

 

 

N/A

 

 

N/A

 

Total FTE revenue

489,738

 

 

485,587

 

 

550,911

 

 

488,612

 

 

486,785

 

 

470,659

 

Return on avg assets

1.36

%

 

1.40

%

 

0.71

%

 

1.37

%

 

1.41

%

 

0.32

%

Return on avg common equity

15.40

 

 

15.77

 

 

7.48

 

 

15.50

 

 

15.93

 

 

3.00

 

Return on avg tangible common equity

17.41

 

 

17.85

 

 

8.69

 

 

17.52

 

 

18.04

 

 

3.60

 

Net interest margin

3.02

 

 

3.04

 

 

3.13

 

 

N/A

 

 

N/A

 

 

N/A

 

Efficiency ratio

55.24

 

 

55.01

 

 

51.58

 

 

54.41

 

 

54.12

 

 

57.71

 

NCO ratio

0.28

 

 

0.21

 

 

0.24

 

 

N/A

 

 

N/A

 

 

N/A

 

NPA ratio

0.46

 

 

0.50

 

 

0.44

 

 

N/A

 

 

N/A

 

 

N/A

 

“Our Synovus team delivered solid financial performance in the second quarter while continuing to position the company for long-term success,” said Kevin Blair, Synovus President and CEO. “Revenue growth in the quarter was largely driven by an $8 million increase in net interest income resulting from earning asset growth. The credit outlook continued to improve, with a 14% reduction in criticized and classified loans and another quarter of reserve release. And we remained focused on growth drivers in the quarter while maintaining discipline around expenses, which declined 5% from the second quarter of 2020.

“We are delivering on Synovus Forward, with $75 million in pre-tax benefits to date, and we continue to strengthen our competitive position by investing in specialized talent, technology and solutions, and by taking advantage of our economically vibrant Southeast footprint,” Blair said. “We expect our efforts to produce sustained profitable growth, positive operating leverage, and higher returns as we progress toward becoming a top quartile performing bank.”

Balance Sheet

Loans*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

2Q21

 

1Q21

 

Linked
Quarter
Change

 

Linked
Quarter %
Change

 

2Q20

 

Year/Year
Change

 

Year/Year
% Change

Commercial & industrial

$

19,150.1

 

 

$

19,693.8

 

 

$

(543.7

)

 

(3

)%

 

$

20,031.6

 

 

$

(881.5

)

 

 

(4

)%

Commercial real estate

10,361.1

 

 

10,533.9

 

 

(172.9

)

 

(2

)

 

10,614.2

 

 

(253.1

)

 

 

(2

)

Consumer

8,724.8

 

 

8,577.3

 

 

147.5

 

 

2

 

 

9,268.5

 

 

(543.6

)

 

 

(6

)

Total loans

$

38,236.0

 

 

$

38,805.1

 

 

$

(569.1

)

 

(1

)%

 

$

39,914.3

 

 

$

(1,678.2

)

 

 

(4

)%

 

*Amounts may not total due to rounding

  • Total loans ended the quarter at $38.24 billion, down $569.1 million or 1% sequentially.
  • Commercial and industrial (C&I) loans declined $543.7 million sequentially, led by a decline in PPP loan balances of $763.4 million.
    • PPP forgiveness of $927 million partially offset by additional fundings of $149 million.
    • C&I line utilization remains near historic lows at ~40%.
  • CRE loans declined $172.9 million as the recovery in commercial real estate continues.
  • Consumer loans increased $147.5 million sequentially, with growth of $273.5 million in third-party consumer lending offsetting declines in consumer mortgages and HELOCs of $98.4 million and $74.2 million, respectively.

Deposits*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

2Q21

 

1Q21

 

Linked
Quarter
Change

 

Linked
Quarter %
Change

 

2Q20

 

Year/Year
Change

 

Year/Year
% Change

Non-interest-bearing DDA

$

14,342.6

 

 

$

13,742.1

 

 

$

600.5

 

 

4

%

 

$

11,830.7

 

 

$

2,511.9

 

 

21

%

Interest-bearing DDA

5,839.8

 

 

5,841.7

 

 

(1.9

)

 

 

 

5,057.2

 

 

782.6

 

 

15

 

Money market

13,983.1

 

 

13,943.7

 

 

39.4

 

 

 

 

11,457.2

 

 

2,525.9

 

 

22

 

Savings

1,341.5

 

 

1,277.0

 

 

64.4

 

 

5

 

 

1,080.1

 

 

261.3

 

 

24

 

Public funds

5,804.9

 

 

6,154.9

 

 

(350.0

)

 

(6

)

 

5,347.4

 

 

457.6

 

 

9

 

Time deposits

2,891.1

 

 

3,214.8

 

 

(323.6

)

 

(10

)

 

5,131.7

 

 

(2,240.6

)

 

(44

)

Brokered deposits

2,969.0

 

 

3,194.7

 

 

(225.7

)

 

(7

)

 

4,290.3

 

 

(1,321.3

)

 

(31

)

Total deposits

$

47,172.0

 

 

$

47,369.0

 

 

$

(197.0

)

 

%

 

$

44,194.6

 

 

$

2,977.4

 

 

7

%

 

*Amounts may not total due to rounding

  • Total deposits ended the quarter at $47.17 billion, down $197.0 million sequentially.
  • Core transaction deposits increased $702.4 million or 2% sequentially.
  • Total deposit costs declined 6 bps sequentially to 0.16%.

Income Statement Summary**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data)

2Q21

 

1Q21

 

Linked
Quarter
Change

 

Linked
Quarter %
Change

 

2Q20

 

Year/Year
Change

 

Year/Year
% Change

Net interest income

$

381,860

 

 

$

373,857

 

 

$

8,003

 

 

2

%

 

$

376,566

 

 

$

5,294

 

 

1

%

Non-interest revenue

107,087

 

 

110,956

 

 

(3,869

)

 

(3

)

 

173,484

 

 

(66,397

)

 

(38

)

Non-interest expense

270,531

 

 

267,134

 

 

3,397

 

 

1

 

 

284,141

 

 

(13,610

)

 

(5

)

(Reversal of) provision for credit losses

(24,598

)

 

(18,575

)

 

(6,023

)

 

(32

)

 

141,851

 

 

(166,449

)

 

nm

 

Income before taxes

$

243,014

 

 

$

236,254

 

 

$

6,760

 

 

3

%

 

$

124,058

 

 

$

118,956

 

 

96

%

Income tax expense

56,814

 

 

49,161

 

 

7,653

 

 

16

 

 

30,866

 

 

25,948

 

 

84

 

Preferred stock dividends

8,291

 

 

8,291

 

 

 

 

 

 

8,291

 

 

 

 

 

Net income available to common shareholders

$

177,909

 

 

$

178,802

 

 

$

(893

)

 

%

 

$

84,901

 

 

$

93,008

 

 

110

%

Weighted average common shares outstanding, diluted

149,747

 

 

149,780

 

 

(33

)

 

%

 

147,733

 

 

2,014

 

 

1

%

Diluted earnings per share

$

1.19

 

 

$

1.19

 

 

$

 

 

 

 

$

0.57

 

 

$

0.62

 

 

109

 

Adjusted diluted earnings per share

1.20

 

 

1.21

 

 

(0.01

)

 

(1

)

 

0.23

 

 

0.97

 

 

421

 

 

** Amounts may not total due to rounding

Core Performance

  • Net interest income of $381.9 million increased $8.0 million sequentially as asset growth, reduced deposit costs, and a higher day count more than offset the reduction in PPP fee income.
    • Net PPP fee accretion of $20.4 million, down $4.5 million sequentially.
    • Net interest margin was 3.02%, down 2 bps sequentially.
  • Non-interest revenue decreased $3.9 million, or 3% sequentially. Adjusted non-interest revenue decreased $6.2 million, or 6% sequentially, and increased $12.7 million, or 14% compared to prior year.
    • Broad-based growth helped partially offset normalization of net mortgage revenue, which declined $8.5 million sequentially.
  • Non-interest expense increased $3.4 million, or 1% sequentially. Adjusted non-interest expense increased $2.4 million, or 1% sequentially.
    • The benefits from various efficiency initiatives were offset by higher commissions, incentives, and expenses primarily related to additional PPP forgiveness and expenses associated with higher third-party consumer loan balances.
  • Reversal of provision for credit losses of $24.6 million supported by a more positive economic outlook and 14% reduction in criticized and classified loans; allowance for credit losses coverage ratio (to loans) of 1.47%, or 1.54% excluding PPP loans.
  • Tax expense was $56.8 million, an increase of $7.7 million driven by higher taxable income and unfavorable change in discrete items.
    • Year-to-date effective tax rate of 22.56% before discrete items.

Capital Ratios

 

 

 

 

 

 

 

 

2Q21

 

1Q21

 

2Q20

Common equity Tier 1 capital (CET1) ratio

9.75

%

*

9.74

%

 

8.90

%

Tier 1 capital ratio

10.99

 

*

10.99

 

 

10.15

 

Total risk-based capital ratio

13.25

 

*

13.34

 

 

12.70

 

Tier 1 leverage ratio

8.72

 

*

8.80

 

 

8.38

 

Tangible common equity ratio

7.73

 

 

7.55

 

 

7.41

 

 

* Ratios are preliminary.

Capital

  • Preliminary CET1 ratio improved 1 bp during the quarter to 9.75% as strong core performance helped offset the impact of $92.5 million in share repurchases at an average price of $47.51, reducing average diluted outstanding shares from the prior quarter by 1.3%.
  • Total risk-based capital ratio of 13.25% declined 9 bps from the prior quarter following a reduction in the ACL.

Second Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on July 20, 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 $55 billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services through 285 branches in Alabama, Florida, Georgia, South Carolina, and Tennessee. Synovus Bank, a wholly owned subsidiary of Synovus, has been recognized as one of the country's “Most Reputable Banks” by American Banker and the Reputation Institute. Synovus is on the web at synovus.com, and on Twitter, Facebook, LinkedIn, and Instagram.

Forward-Looking Statements

This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements through Synovus’ use of words such as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the future or otherwise regarding the outlook for Synovus’ future business and financial performance and/or the performance of the banking industry and economy in general. These forward-looking statements include, among others, our expectations regarding our future operating and financial performance; expectations on our growth strategy, expense and revenue initiatives, capital management, balance sheet management, and future profitability; expectations on credit quality and performance; and the assumptions underlying our expectations. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Synovus to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, Synovus’ management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements in this press release. Many of these factors are beyond Synovus’ ability to control or predict.

These forward-looking statements are based upon information presently known to Synovus’ management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in Synovus’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2020, under the captions “Cautionary Notice Regarding Forward-Looking Statements” and “Risk Factors” and in Synovus’ quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as otherwise may be required by law.

Non-GAAP Financial Measures

The measures entitled adjusted non-interest revenue; adjusted non-interest expense; total adjusted revenue; adjusted tangible efficiency ratio; adjusted net income available to common shareholders; adjusted diluted earnings per share; adjusted return on average assets; adjusted return on average common equity; return on average tangible common equity; adjusted return on average tangible common equity; and tangible common equity ratio are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are total non-interest revenue; total non-interest expense; total FTE revenue; efficiency ratio-FTE; net income available to common shareholders; diluted earnings per share; return on average assets; return on average common equity; and the ratio of total shareholders' equity to total assets, respectively.

Management believes that these non-GAAP financial measures provide meaningful additional information about Synovus to assist management and investors in evaluating Synovus’ operating results, financial strength, the performance of its business, and the strength of its capital position. However, these non-GAAP financial measures have inherent limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of operating results or capital position as reported under GAAP. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant items and other factors, and since they are not required to be uniformly applied, they may not be comparable to other similarly titled measures at other companies. Total adjusted revenue and adjusted non-interest revenue are measures used by management to evaluate total FTE revenue and non-interest revenue exclusive of net investment securities gains (losses), gain on sale and changes in the fair value of private equity investments, net, and fair value adjustment on non-qualified deferred compensation. Adjusted non-interest expense and the adjusted tangible efficiency ratio are measures utilized by management to measure the success of expense management initiatives focused on reducing recurring controllable operating costs. 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)

2Q21

 

1Q21

 

2Q20

Adjusted non-interest revenue

 

 

 

 

 

Total non-interest revenue

$

107,087

 

 

$

110,956

 

 

$

173,484

 

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

 

 

1,990

 

 

(69,409

)

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

 

 

 

 

(8,707

)

Subtract: Fair value adjustment on non-qualified deferred compensation

(1,126

)

 

(792

)

 

(2,136

)

Adjusted non-interest revenue

$

105,961

 

 

$

112,154

 

 

$

93,232

 

 

 

 

 

 

 

Adjusted non-interest expense

 

 

 

 

 

Total non-interest expense

$

270,531

 

 

$

267,134

 

 

$

284,141

 

Subtract: Earnout liability adjustment

(750

)

 

 

 

(4,908

)

Subtract: Restructuring charges

(415

)

 

(531

)

 

(2,822

)

Subtract: Fair value adjustment on non-qualified deferred compensation

(1,126

)

 

(792

)

 

(2,136

)

Adjusted non-interest expense

$

268,240

 

 

$

265,811

 

 

$

274,275

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

2Q21

 

1Q21

 

2Q20

Total adjusted revenue and adjusted tangible efficiency ratio

 

 

 

 

 

Adjusted non-interest expense

$

268,240

 

 

$

265,811

 

 

$

274,275

 

Subtract: Amortization of intangibles

(2,379

)

 

(2,379

)

 

(2,640

)

Adjusted tangible non-interest expense

$

265,861

 

 

$

263,432

 

 

$

271,635

 

 

 

 

 

 

 

Net interest income

$

381,860

 

 

$

373,857

 

 

$

376,566

 

Add: Tax equivalent adjustment

791

 

 

774

 

 

861

 

Add: Total non-interest revenue

107,087

 

 

110,956

 

 

173,484

 

Total FTE revenue

489,738

 

 

485,587

 

 

550,911

 

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

 

 

1,990

 

 

(69,409

)

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

 

 

 

 

(8,707

)

Subtract: Fair value adjustment on non-qualified deferred compensation

(1,126

)

 

(792

)

 

(2,136

)

Total adjusted revenue

$

488,612

 

 

$

486,785

 

 

$

470,659

 

Efficiency ratio-FTE

55.24

%

 

55.01

%

 

51.58

%

Adjusted tangible efficiency ratio

54.41

 

 

54.12

 

 

57.71

 

Adjusted return on average assets

 

 

 

 

 

Net income

$

186,200

 

 

$

187,093

 

 

 

$

93,192

 

Add: Earnout liability adjustment

750

 

 

 

 

 

4,908

 

Add: Restructuring charges

415

 

 

531

 

 

 

2,822

 

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

 

 

1,990

 

 

 

(69,409

)

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

 

 

 

 

 

(8,707

)

Subtract/add: Tax effect of adjustments (1)

(105

)

 

(638

)

 

 

19,500

 

Adjusted net income

$

187,260

 

 

$

188,976

 

 

 

$

42,306

 

Net income annualized

$

746,846

 

 

$

758,766

 

 

 

$

374,816

 

Adjusted net income annualized

$

751,098

 

 

$

766,403

 

 

 

$

170,154

 

Total average assets

$

55,017,771

 

 

$

54,188,504

 

 

 

$

52,853,685

 

Return on average assets

1.36

%

 

1.40

%

 

0.71

%

Adjusted return on average assets

1.37

 

 

1.41

 

 

 

0.32

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

Net income available to common shareholders

$

177,909

 

 

$

178,802

 

 

 

$

84,901

 

Add: Earnout liability adjustment

750

 

 

 

 

 

4,908

 

Add: Restructuring charges

415

 

 

531

 

 

 

2,822

 

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

 

 

1,990

 

 

 

(69,409

)

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

 

 

 

 

 

(8,707

)

Subtract/add: Tax effect of adjustments (1)

(105

)

 

(638

)

 

 

19,500

 

Adjusted net income available to common shareholders

$

178,969

 

 

$

180,685

 

 

 

$

34,015

 

Weighted average common shares outstanding, diluted

149,747

 

 

149,780

 

 

 

147,733

 

Diluted earnings per share

$

1.19

 

 

$

1.19

 

 

 

$

0.57

 

Adjusted diluted earnings per share

1.20

 

 

1.21

 

 

 

0.23

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

2Q21

 

1Q21

 

2Q20

 

 

 

 

 

 

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

$

177,909

 

 

$

178,802

 

 

$

84,901

 

Add: Earnout liability adjustment

750

 

 

 

 

4,908

 

Add: Restructuring charges

415

 

 

531

 

 

2,822

 

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

 

 

1,990

 

 

(69,409

)

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

 

 

 

 

(8,707

)

Subtract/add: Tax effect of adjustments (1)

(105

)

 

(638

)

 

19,500

 

Adjusted net income available to common shareholders

$

178,969

 

 

$

180,685

 

 

$

34,015

 

 

 

 

 

 

 

Adjusted net income available to common shareholders annualized

$

717,843

 

 

$

732,778

 

 

$

136,808

 

Add: Amortization of intangibles, annualized net of tax

7,128

 

 

7,207

 

 

7,868

 

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

$

724,971

 

 

$

739,985

 

 

$

144,676

 

 

 

 

 

 

 

Net income available to common shareholders annualized

$

713,591

 

 

$

725,141

 

 

$

341,470

 

Add: Amortization of intangibles, annualized net of tax

7,128

 

 

7,207

 

 

7,868

 

Net income available to common shareholders excluding amortization of intangibles annualized

$

720,719

 

 

$

732,348

 

 

$

349,338

 

 

 

 

 

 

 

Total average shareholders' equity less preferred stock

$

4,632,568

 

 

$

4,599,076

 

 

$

4,567,254

 

Subtract: Goodwill

(452,390

)

 

(452,390

)

 

(497,267

)

Subtract: Other intangible assets, net

(41,399

)

 

(44,005

)

 

(51,667

)

Total average tangible shareholders' equity less preferred stock

$

4,138,779

 

 

$

4,102,681

 

 

$

4,018,320

 

Return on average common equity

15.40

%

 

15.77

%

 

7.48

%

Adjusted return on average common equity

15.50

 

 

15.93

 

 

3.00

 

Return on average tangible common equity

17.41

 

 

17.85

 

 

8.69

 

Adjusted return on average tangible common equity

17.52

 

 

18.04

 

 

3.60

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

June 30, 2021

 

March 31,
2021

 

June 30, 2020

 

 

 

 

 

 

Tangible common equity ratio

 

 

 

 

 

Total assets

$

54,938,659

 

 

$

55,159,011

 

 

$

54,121,989

 

Subtract: Goodwill

(452,390

)

 

(452,390

)

 

(497,267

)

Subtract: Other intangible assets, net

(40,354

)

 

(42,733

)

 

(50,392

)

Tangible assets

$

54,445,915

 

 

$

54,663,888

 

 

$

53,574,330

 

 

 

 

 

 

 

Total shareholders’ equity

$

5,237,714

 

 

$

5,161,717

 

 

$

5,052,968

 

Subtract: Goodwill

(452,390

)

 

(452,390

)

 

(497,267

)

Subtract: Other intangible assets, net

(40,354

)

 

(42,733

)

 

(50,392

)

Subtract: Preferred Stock, no par value

(537,145

)

 

(537,145

)

 

(537,145

)

Tangible common equity

$

4,207,825

 

 

$

4,129,449

 

 

$

3,968,164

 

Total shareholders’ equity to total assets ratio

9.53

%

 

9.36

%

 

9.34

%

Tangible common equity ratio

7.73

 

 

7.55

 

 

7.41

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT DATA

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

Six Months Ended

 

 

 

 

 

 

 

 

 

2021

 

2020

 

21 vs '20

 

 

 

 

% Change

 

 

 

 

 

 

 

 

Interest income

$

822,560

 

 

$

935,466

 

 

(12

)%

 

Interest expense

66,844

 

 

185,640

 

 

(64

)

 

 

 

 

 

 

 

 

Net interest income

755,716

 

 

749,826

 

 

1

 

 

(Reversal of) provision for credit losses

(43,173

)

 

300,573

 

 

nm

 

 

 

 

 

 

 

 

 

Net interest income after provision for credit losses

798,889

 

 

449,253

 

 

78

 

 

 

 

 

 

 

 

 

Non-interest revenue:

 

 

 

 

 

 

Service charges on deposit accounts

41,448

 

 

36,255

 

 

14

 

 

Fiduciary and asset management fees

36,759

 

 

30,124

 

 

22

 

 

Card fees

25,300

 

 

20,136

 

 

26

 

 

Brokerage revenue

26,899

 

 

22,383

 

 

20

 

 

Mortgage banking income

36,157

 

 

35,757

 

 

1

 

 

Capital markets income

10,840

 

 

17,294

 

 

(37

)

 

Income from bank-owned life insurance

16,031

 

 

13,794

 

 

16

 

 

Investment securities (losses) gains, net

(1,990

)

 

78,144

 

 

nm

 

 

Other non-interest revenue

26,599

 

 

23,454

 

 

13

 

 

 

 

 

 

 

 

 

Total non-interest revenue

218,043

 

 

277,341

 

 

(21

)

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

Salaries and other personnel expense

322,044

 

 

309,274

 

 

4

 

 

Net occupancy, equipment, and software expense

82,959

 

 

83,921

 

 

(1

)

 

Third-party processing and other services

44,451

 

 

45,366

 

 

(2

)

 

Professional fees

17,031

 

 

25,980

 

 

(34

)

 

FDIC insurance and other regulatory fees

11,127

 

 

12,129

 

 

(8

)

 

Other operating expenses

60,053

 

 

83,751

 

 

(28

)

 

 

 

 

 

 

 

 

Total non-interest expense

537,665

 

 

560,421

 

 

(4

)

 

 

 

 

 

 

 

 

Income before income taxes

479,267

 

 

166,173

 

 

188

 

 

Income tax expense

105,975

 

 

34,461

 

 

208

 

 

 

 

 

 

 

 

 

Net income

373,292

 

 

131,712

 

 

183

 

 

 

 

 

 

 

 

 

Less: Preferred stock dividends

16,581

 

 

16,581

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

$

356,711

 

 

$

115,131

 

 

210

%

 

 

 

 

 

 

 

 

Net income per common share, basic

$

2.41

 

 

$

0.78

 

 

208

%

 

 

 

 

 

 

 

 

Net income per common share, diluted

2.38

 

 

0.78

 

 

206

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

0.66

 

 

0.66

 

 

 

 

 

 

 

 

 

 

 

Return on average assets *

1.38

%

 

0.52

%

 

86

bps

 

Return on average common equity *

15.58

 

 

5.15

 

 

1,043

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

148,289

 

 

147,300

 

 

1

%

 

Weighted average common shares outstanding, diluted

149,764

 

 

148,067

 

 

1

 

 

 

 

 

 

 

 

 

nm - not meaningful

 

 

 

 

 

 

bps - basis points

 

 

 

 

 

 

* - ratios are annualized

 

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT DATA

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

2021

 

2020

 

Second Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second
Quarter

 

First
Quarter

 

Fourth
Quarter

 

Third
Quarter

 

Second
Quarter

 

'21 vs '20

 

 

 

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

412,743

 

 

409,817

 

 

433,479

 

 

435,550

 

 

451,569

 

 

(9

)%

 

Interest expense

30,883

 

 

35,960

 

 

47,547

 

 

58,560

 

 

75,003

 

 

(59

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

381,860

 

 

373,857

 

 

385,932

 

 

376,990

 

 

376,566

 

 

1

 

 

(Reversal of) provision for credit losses

(24,598

)

 

(18,575

)

 

11,066

 

 

43,383

 

 

141,851

 

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for credit losses

406,458

 

 

392,432

 

 

374,866

 

 

333,607

 

 

234,715

 

 

73

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

21,414

 

 

20,033

 

 

19,063

 

 

17,813

 

 

15,567

 

 

38

 

 

Fiduciary and asset management fees

18,805

 

 

17,954

 

 

17,242

 

 

15,885

 

 

14,950

 

 

26

 

 

Card fees

13,304

 

 

11,996

 

 

11,743

 

 

10,823

 

 

9,186

 

 

45

 

 

Brokerage revenue

13,926

 

 

12,974

 

 

11,794

 

 

10,604

 

 

9,984

 

 

39

 

 

Mortgage banking income

13,842

 

 

22,315

 

 

24,426

 

 

31,229

 

 

23,530

 

 

(41

)

 

Capital markets income

3,335

 

 

7,505

 

 

4,352

 

 

5,690

 

 

6,050

 

 

(45

)

 

Income from bank-owned life insurance

7,188

 

 

8,843

 

 

9,725

 

 

7,778

 

 

7,756

 

 

(7

)

 

Investment securities (losses)/gains, net

 

 

(1,990

)

 

2,337

 

 

(1,550

)

 

69,409

 

 

nm

 

 

Other non-interest revenue

15,273

 

 

11,326

 

 

14,079

 

 

16,139

 

 

17,052

 

 

(10

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest revenue

107,087

 

 

110,956

 

 

114,761

 

 

114,411

 

 

173,484

 

 

(38

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and other personnel expense

160,567

 

 

161,477

 

 

153,946

 

 

154,994

 

 

159,597

 

 

1

 

 

Net occupancy, equipment, and software expense

41,825

 

 

41,134

 

 

44,183

 

 

41,554

 

 

41,727

 

 

 

 

Third-party processing and other services

24,419

 

 

20,032

 

 

20,799

 

 

21,827

 

 

22,666

 

 

8

 

 

Professional fees

7,947

 

 

9,084

 

 

17,541

 

 

13,377

 

 

15,305

 

 

(48

)

 

FDIC insurance and other regulatory fees

5,547

 

 

5,579

 

 

6,288

 

 

6,793

 

 

6,851

 

 

(19

)

 

Other operating expenses

30,226

 

 

29,828

 

 

59,741

 

 

78,110

 

 

37,995

 

 

(20

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest expense

270,531

 

 

267,134

 

 

302,498

 

 

316,655

 

 

284,141

 

 

(5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

243,014

 

 

236,254

 

 

187,129

 

 

131,363

 

 

124,058

 

 

96

 

 

Income tax expense

56,814

 

 

49,161

 

 

36,720

 

 

39,789

 

 

30,866

 

 

84

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

186,200

 

 

187,093

 

 

150,409

 

 

91,574

 

 

93,192

 

 

100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Preferred stock dividends

8,291

 

 

8,291

 

 

8,291

 

 

8,291

 

 

8,291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

$

177,909

 

 

178,802

 

 

142,118

 

 

83,283

 

 

84,901

 

 

110

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, basic

$

1.20

 

 

1.20

 

 

0.96

 

 

0.57

 

 

0.58

 

 

107

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, diluted

1.19

 

 

1.19

 

 

0.96

 

 

0.56

 

 

0.57

 

 

109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

0.33

 

 

0.33

 

 

0.33

 

 

0.33

 

 

0.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets *

1.36

%

 

1.40

 

 

1.11

 

 

0.69

 

 

0.71

 

 

65

bps

 

Return on average common equity *

15.40

 

 

15.77

 

 

12.31

 

 

7.28

 

 

7.48

 

 

792

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

148,113

 

 

148,467

 

 

147,744

 

 

147,314

 

 

147,288

 

 

1

%

 

Weighted average common shares outstanding, diluted

149,747

 

 

149,780

 

 

148,725

 

 

147,976

 

 

147,733

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

nm - not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

bps - basis points

 

 

 

 

 

 

 

 

 

 

 

 

* - ratios are annualized

 

 

 

 

 

 

 

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET DATA

 

June 30, 2021

 

December 31, 2020

 

June 30, 2020

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Cash and due from banks

 

$

560,396

 

 

$

531,579

 

 

$

572,169

 

 

Interest-bearing funds with Federal Reserve Bank

 

2,598,213

 

 

3,586,565

 

 

860,289

 

 

Interest earning deposits with banks

 

21,513

 

 

20,944

 

 

20,719

 

 

Federal funds sold and securities purchased under resale agreements

 

82,554

 

 

113,829

 

 

118,048

 

 

Cash, cash equivalents, and restricted cash

 

3,262,676

 

 

4,252,917

 

 

1,571,225

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale, at fair value

 

9,442,170

 

 

7,962,438

 

 

7,197,493

 

 

Loans held for sale ($202,216, $216,647, and $266,306 measured at fair value, respectively)

 

750,916

 

 

760,123

 

 

900,936

 

 

 

 

 

 

 

 

 

 

Loans, net of deferred fees and costs

 

38,236,018

 

 

38,252,984

 

 

39,914,297

 

 

Allowance for loan losses

 

(516,708

)

 

(605,736

)

 

(588,648

)

 

Loans, net

 

37,719,310

 

 

37,647,248

 

 

39,325,649

 

 

 

 

 

 

 

 

 

 

Cash surrender value of bank-owned life insurance

 

1,059,235

 

 

1,049,373

 

 

1,038,049

 

 

Premises, equipment, and software, net

 

446,447

 

 

463,959

 

 

481,716

 

 

Goodwill

 

452,390

 

 

452,390

 

 

497,267

 

 

Other intangible assets, net

 

40,354

 

 

45,112

 

 

50,392

 

 

Receivable on unsettled securities sales

 

 

 

 

 

1,289,116

 

 

Other assets

 

1,765,161

 

 

1,760,599

 

 

1,770,146

 

 

Total assets

 

$

54,938,659

 

 

$

54,394,159

 

 

$

54,121,989

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

$

15,345,629

 

 

$

13,477,854

 

 

$

12,555,714

 

 

Interest-bearing deposits

 

31,826,333

 

 

33,213,717

 

 

31,638,866

 

 

 

 

 

 

 

 

 

 

Total deposits

 

47,171,962

 

 

46,691,571

 

 

44,194,580

 

 

 

 

 

 

 

 

 

 

Federal funds purchased and securities sold under repurchase agreements

 

194,786

 

 

227,922

 

 

225,576

 

 

Other short-term borrowings

 

 

 

7,717

 

 

300,000

 

 

Long-term debt

 

1,203,293

 

 

1,202,494

 

 

2,327,921

 

 

Due on unsettled securities purchases

 

48,795

 

 

 

 

922,952

 

 

Other liabilities

 

1,082,109

 

 

1,103,121

 

 

1,097,992

 

 

Total liabilities

 

49,700,945

 

 

49,232,825

 

 

49,069,021

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

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

 

537,145

 

 

537,145

 

 

537,145

 

 

Common stock - $1.00 par value. Authorized 342,857,143 shares; issued 169,107,609, 168,132,522, and 167,405,730; outstanding 147,071,532, 148,039,495, and 147,312,703

 

169,108

 

 

168,133

 

 

167,406

 

 

Additional paid-in capital

 

3,872,949

 

 

3,851,208

 

 

3,826,726

 

 

Treasury stock, at cost – 22,036,077, 20,093,027, and 20,093,027 shares

 

(824,197

)

 

(731,806

)

 

(731,806

)

 

Accumulated other comprehensive income, net

 

45,726

 

 

158,635

 

 

202,970

 

 

Retained earnings

 

1,436,983

 

 

1,178,019

 

 

1,050,527

 

 

Total shareholders’ equity

 

5,237,714

 

 

5,161,334

 

 

5,052,968

 

 

Total liabilities and shareholders' equity

 

$

54,938,659

 

 

$

54,394,159

 

 

$

54,121,989

 

Synovus

 

 

 

 

 

 

 

 

AVERAGE BALANCES AND YIELDS/RATES (1)

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

(Dollars in thousands)

 

 

2021

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second

First

 

Fourth

Third

Second

 

 

 

Quarter

Quarter

 

Quarter

Quarter

Quarter

 

Interest Earning Assets

 

 

 

 

 

 

 

 

Investment securities (2) (4)

 

$

9,184,691

 

8,437,563

 

 

7,493,822

 

 

7,227,400

 

 

6,618,533

 

 

 

Yield

 

1.45

%

1.40

 

 

2.07

 

 

2.39

 

 

2.72

 

 

 

Trading account assets (5)

 

$

2,831

 

3,063

 

 

8,496

 

 

5,391

 

 

6,173

 

 

 

Yield

 

1.15

%

2.81

 

 

1.03

 

 

1.69

 

 

2.19

 

 

 

Commercial loans (3) (4)

 

$

29,849,029

 

29,844,491

 

 

30,363,102

 

 

30,730,135

 

 

30,236,919

 

 

 

Yield

 

3.86

%

3.95

 

 

3.96

 

 

3.80

 

 

3.95

 

 

 

Consumer loans (3)

 

$

8,647,448

 

8,367,776

 

 

8,521,449

 

 

9,032,437

 

 

9,899,172

 

 

 

Yield

 

3.94

%

3.98

 

 

4.00

 

 

4.08

 

 

4.34

 

 

 

Allowance for loan losses

 

$

(561,242

)

(599,872

)

 

(595,547

)

 

(591,098

)

 

(498,545

)

 

 

Loans, net (3)

 

$

37,935,235

 

37,612,395

 

 

38,289,004

 

 

39,171,474

 

 

39,637,546

 

 

 

Yield

 

3.93

%

4.02

 

 

4.03

 

 

3.92

 

 

4.08

 

 

 

Mortgage loans held for sale

 

$

242,940

 

246,962

 

 

309,278

 

 

244,952

 

 

221,157

 

 

 

Yield

 

3.06

%

2.68

 

 

2.74

 

 

2.92

 

 

3.09

 

 

 

Other loans held for sale

 

$

615,301

 

660,753

 

 

544,301

 

 

493,940

 

 

19,246

 

 

 

Yield

 

3.05

%

2.91

 

 

2.81

 

 

3.61

 

 

4.19

 

 

 

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

 

$

2,705,819

 

2,838,063

 

 

2,716,645

 

 

1,265,880

 

 

1,709,086

 

 

 

Yield

 

0.11

%

0.10

 

 

0.10

 

 

0.11

 

 

0.11

 

 

 

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

 

$

159,340

 

157,657

 

 

162,537

 

 

200,923

 

 

247,801

 

 

 

Yield

 

2.01

%

1.69

 

 

2.64

 

 

2.73

 

 

3.60

 

 

 

Total interest earning assets

 

$

50,846,157

 

49,956,456

 

 

49,524,083

 

 

48,609,960

 

 

48,459,542

 

 

 

Yield

 

3.26

%

3.32

 

 

3.49

 

 

3.58

 

 

3.75

 

 

 

Interest-Bearing Liabilities

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

8,601,262

 

8,570,753

 

 

8,531,415

 

 

7,789,095

 

 

7,260,940

 

 

 

Rate

 

0.11

%

0.14

 

 

0.16

 

 

0.19

 

 

0.21

 

 

 

Money Market accounts

 

$

15,476,262

 

15,348,916

 

 

14,411,860

 

 

13,272,972

 

 

12,238,479

 

 

 

Rate

 

0.19

%

0.23

 

 

0.26

 

 

0.36

 

 

0.46

 

 

 

Savings deposits

 

$

1,333,297

 

1,219,288

 

 

1,147,667

 

 

1,114,956

 

 

1,036,024

 

 

 

Rate

 

0.02

%

0.02

 

 

0.01

 

 

0.02

 

 

0.02

 

 

 

Time deposits under $100,000

 

$

1,077,931

 

1,161,306

 

 

1,239,592

 

 

1,379,923

 

 

1,621,943

 

 

 

Rate

 

0.41

%

0.56

 

 

0.74

 

 

1.03

 

 

1.43

 

 

 

Time deposits over $100,000

 

$

2,714,451

 

2,993,996

 

 

3,302,959

 

 

3,863,821

 

 

4,772,555

 

 

 

Rate

 

0.56

%

0.74

 

 

1.03

 

 

1.44

 

 

1.80

 

 

 

Other brokered deposits

 

$

1,901,097

 

1,950,582

 

 

1,978,393

 

 

1,912,114

 

 

1,998,571

 

 

 

Rate

 

0.19

%

0.20

 

 

0.23

 

 

0.23

 

 

0.25

 

 

 

Brokered time deposits

 

$

1,156,510

 

1,418,751

 

 

1,795,982

 

 

2,232,940

 

 

2,244,429

 

 

 

Rate

 

1.35

%

1.50

 

 

1.60

 

 

1.59

 

 

1.86

 

 

 

Total interest-bearing deposits

 

$

32,260,810

 

32,663,592

 

 

32,407,868

 

 

31,565,821

 

 

31,172,941

 

 

 

Rate

 

0.24

%

0.31

 

 

0.39

 

 

0.54

 

 

0.73

 

 

 

Federal funds purchased and securities sold under repurchase agreements

 

$

204,053

 

209,448

 

 

174,316

 

 

180,342

 

 

250,232

 

 

 

Rate

 

0.07

%

0.07

 

 

0.07

 

 

0.09

 

 

0.12

 

 

 

Other short-term borrowings

 

$

 

 

 

 

 

46,739

 

 

550,000

 

 

 

Rate

 

%

 

 

 

 

1.12

 

 

1.23

 

 

 

Long-term debt

 

$

1,203,038

 

1,202,613

 

 

1,552,791

 

 

2,234,665

 

 

2,834,188

 

 

 

Rate

 

3.82

%

3.63

 

 

3.96

 

 

2.71

 

 

2.36

 

 

 

Total interest-bearing liabilities

 

$

33,667,901

 

34,075,653

 

 

34,134,975

 

 

34,027,567

 

 

34,807,361

 

 

 

Rate

 

0.36

%

0.42

 

 

0.55

 

 

0.68

 

 

0.86

 

 

 

Non-interest-bearing demand deposits

 

$

15,088,836

 

13,791,286

 

 

13,566,112

 

 

12,773,676

 

 

11,923,534

 

 

 

Cost of funds

 

0.25

%

0.30

 

 

0.40

 

 

0.50

 

 

0.65

 

 

 

Effective cost of funds(6)

 

0.24

%

0.28

 

 

0.37

 

 

0.48

 

 

0.62

 

 

 

Net interest margin

 

3.02

%

3.04

 

 

3.12

 

 

3.10

 

 

3.13

 

 

 

Taxable equivalent adjustment (4)

 

$

791

 

774

 

 

821

 

 

956

 

 

861

 

 

 

(1) Yields and rates are annualized.

 

 

 

 

 

 

 

 

(2) Excludes net unrealized gains and losses.

 

 

 

 

 

 

 

 

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

 

 

 

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

 

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

 

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

Synovus

 

 

 

 

 

 

 

 

 

 

LOANS OUTSTANDING BY TYPE

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

Total Loans

 

Total Loans

 

Linked Quarter

 

Total Loans

 

Year/Year

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

Loan Type

 

June 30, 2021

 

March 31, 2021

 

% Change

 

June 30, 2020

 

% Change

Commercial, Financial, and Agricultural

 

$

12,085,534

 

 

$

12,662,329

 

 

(5

)%

 

$

12,947,164

 

 

(7

)%

Owner-Occupied

 

7,064,599

 

 

7,031,505

 

 

 

 

7,084,481

 

 

 

Total Commercial & Industrial

 

19,150,133

 

 

19,693,834

 

 

(3

)

 

20,031,645

 

 

(4

)

Multi-Family

 

2,086,641

 

 

2,220,939

 

 

(6

)

 

2,247,959

 

 

(7

)

Hotels

 

1,411,443

 

 

1,462,370

 

 

(3

)

 

1,362,183

 

 

4

 

Office Buildings

 

2,340,378

 

 

2,280,053

 

 

3

 

 

2,244,366

 

 

4

 

Shopping Centers

 

1,645,275

 

 

1,662,158

 

 

(1

)

 

1,775,638

 

 

(7

)

Warehouses

 

657,699

 

 

692,267

 

 

(5

)

 

779,109

 

 

(16

)

Other Investment Property

 

1,076,577

 

 

1,017,938

 

 

6

 

 

826,302

 

 

30

 

Total Investment Properties

 

9,218,013

 

 

9,335,725

 

 

(1

)

 

9,235,557

 

 

 

1-4 Family Construction

 

174,009

 

 

189,626

 

 

(8

)

 

229,806

 

 

(24

)

1-4 Family Investment Mortgage

 

462,335

 

 

449,328

 

 

3

 

 

466,577

 

 

(1

)

Total 1-4 Family Properties

 

636,344

 

 

638,954

 

 

 

 

696,383

 

 

(9

)

Commercial Development

 

120,683

 

 

142,380

 

 

(15

)

 

112,426

 

 

7

 

Residential Development

 

164,950

 

 

196,653

 

 

(16

)

 

270,145

 

 

(39

)

Land Acquisition

 

221,061

 

 

220,216

 

 

 

 

299,659

 

 

(26

)

Land and Development

 

506,694

 

 

559,249

 

 

(9

)

 

682,230

 

 

(26

)

Total Commercial Real Estate

 

10,361,051

 

 

10,533,928

 

 

(2

)

 

10,614,170

 

 

(2

)

Consumer Mortgages

 

5,200,762

 

 

5,299,175

 

 

(2

)

 

5,817,525

 

 

(11

)

Home Equity Lines

 

1,358,211

 

 

1,432,367

 

 

(5

)

 

1,724,973

 

 

(21

)

Credit Cards

 

285,508

 

 

267,371

 

 

7

 

 

250,448

 

 

14

 

Other Consumer Loans

 

1,880,353

 

 

1,578,426

 

 

19

 

 

1,475,536

 

 

27

 

Total Consumer

 

8,724,834

 

 

8,577,339

 

 

2

 

 

9,268,482

 

 

(6

)

Total

 

$

38,236,018

 

 

$

38,805,101

 

 

(1

)%

 

$

39,914,297

 

 

(4

)%

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING LOANS COMPOSITION

 

 

 

 

 

 

 

 

(Unaudited)

 

Total
Non-performing Loans

 

Total
Non-performing Loans

 

Linked Quarter

 

Total

Non-performing Loans

 

Year/Year

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

Loan Type

 

June 30, 2021

 

March 31, 2021

 

% Change

 

June 30, 2020

 

% Change

Commercial, Financial, and Agricultural

 

$

70,943

 

 

$

76,460

 

 

(7

)%

 

$

83,000

 

 

(15

)%

Owner-Occupied

 

13,155

 

 

17,192

 

 

(23

)

 

19,605

 

 

(33

)

Total Commercial & Industrial

 

84,098

 

 

93,652

 

 

(10

)

 

102,605

 

 

(18

)

Multi-Family

 

2,407

 

 

2,698

 

 

(11

)

 

 

 

nm

 

Office Buildings

 

1,618

 

 

1,645

 

 

(2

)

 

836

 

 

94

 

Shopping Centers

 

124

 

 

20,138

 

 

(99

)

 

409

 

 

(70

)

Warehouses

 

218

 

 

221

 

 

(1

)

 

 

 

nm

 

Other Investment Property

 

407

 

 

887

 

 

(54

)

 

393

 

 

4

 

Total Investment Properties

 

4,774

 

 

25,589

 

 

(81

)

 

1,638

 

 

191

 

1-4 Family Construction

 

548

 

 

1,291

 

 

(58

)

 

2,593

 

 

(79

)

1-4 Family Investment Mortgage

 

1,927

 

 

2,760

 

 

(30

)

 

1,844

 

 

5

 

Total 1-4 Family Properties

 

2,475

 

 

4,051

 

 

(39

)

 

4,437

 

 

(44

)

Commercial Development

 

560

 

 

567

 

 

(1

)

 

840

 

 

(33

)

Residential Development

 

451

 

 

452

 

 

 

 

685

 

 

(34

)

Land Acquisition

 

1,029

 

 

782

 

 

32

 

 

1,042

 

 

(1

)

Land and Development

 

2,040

 

 

1,801

 

 

13

 

 

2,567

 

 

(21

)

Total Commercial Real Estate

 

9,289

 

 

31,441

 

 

(70

)

 

8,642

 

 

7

 

Consumer Mortgages

 

51,376

 

 

11,201

 

 

359

 

 

17,438

 

 

195

 

Home Equity Lines

 

8,938

 

 

12,191

 

 

(27

)

 

14,200

 

 

(37

)

Other Consumer Loans

 

7,327

 

 

6,684

 

 

10

 

 

4,552

 

 

61

 

Total Consumer

 

67,641

 

 

30,076

 

 

125

 

 

36,190

 

 

87

 

Total

 

$

161,028

 

 

$

155,169

 

 

4

%

 

$

147,437

 

 

9

%

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY DATA

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

2021

 

2020

 

Second Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second

 

First

 

Fourth

 

Third

 

Second

 

'21 vs '20

 

 

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Loans (NPLs)

 

$

161,028

 

 

155,169

 

 

151,079

 

 

168,837

 

 

147,437

 

 

9

%

 

Impaired Loans Held for Sale

 

 

 

23,590

 

 

23,590

 

 

 

 

 

 

nm

 

 

Other Real Estate and Other Assets

 

16,806

 

 

16,849

 

 

17,394

 

 

23,280

 

 

30,242

 

 

(44

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Assets (NPAs)

 

177,834

 

 

195,608

 

 

192,063

 

 

192,117

 

 

177,679

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses (ALL)

 

516,708

 

 

563,214

 

 

605,736

 

 

603,800

 

 

588,648

 

 

(12

)

 

Reserve for Unfunded Commitments

 

46,890

 

 

51,528

 

 

47,785

 

 

60,794

 

 

61,029

 

 

(23

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses (ACL)

 

563,598

 

 

614,742

 

 

653,521

 

 

664,594

 

 

649,677

 

 

(13

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Charge-Offs - Quarter

 

26,547

 

 

20,204

 

 

22,139

 

 

28,466

 

 

24,046

 

 

 

 

Net Charge-Offs - YTD

 

46,750

 

 

20,204

 

 

94,712

 

 

72,573

 

 

44,107

 

 

 

 

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

 

0.28

%

 

0.21

 

 

0.23

 

 

0.29

 

 

0.24

 

 

 

 

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

 

0.24

 

 

0.21

 

 

0.24

 

 

0.25

 

 

0.23

 

 

 

 

NPLs / Loans

 

0.42

 

 

0.40

 

 

0.39

 

 

0.43

 

 

0.37

 

 

 

 

NPAs / Loans, ORE and specific other assets

 

0.46

 

 

0.50

 

 

0.50

 

 

0.49

 

 

0.44

 

 

 

 

ACL/Loans

 

1.47

 

 

1.58

 

 

1.71

 

 

1.68

 

 

1.63

 

 

 

 

ALL/Loans

 

1.35

 

 

1.45

 

 

1.58

 

 

1.53

 

 

1.47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACL/NPLs

 

350.00

 

 

396.18

 

 

432.57

 

 

393.63

 

 

440.65

 

 

 

 

ALL/NPLs

 

320.88

 

 

362.97

 

 

400.94

 

 

357.62

 

 

399.25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past Due Loans over 90 days and Still Accruing

 

$

4,415

 

 

3,804

 

 

4,117

 

 

7,512

 

 

8,391

 

 

(47

)

 

As a Percentage of Loans Outstanding

 

0.01

%

 

0.01

 

 

0.01

 

 

0.02

 

 

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Past Due Loans and Still Accruing

 

$

49,321

 

 

45,693

 

 

47,349

 

 

57,316

 

 

46,390

 

 

6

 

 

As a Percentage of Loans Outstanding

 

0.13

%

 

0.12

 

 

0.12

 

 

0.14

 

 

0.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing Troubled Debt Restructurings (TDRs)

 

$

124,528

 

 

129,776

 

 

134,972

 

 

163,511

 

 

166,461

 

 

(25

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Ratio is annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED CAPITAL INFORMATION (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2021

 

December 31, 2020

 

June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital

 

$

4,751,865

 

 

4,572,010

 

 

4,364,374

 

 

 

 

 

 

 

 

Total Risk-Based Capital

 

5,725,176

 

 

5,604,230

 

 

5,459,568

 

 

 

 

 

 

 

 

Common Equity Tier 1 Capital Ratio

 

9.75

%

 

9.66

 

 

8.90

 

 

 

 

 

 

 

 

Tier 1 Capital Ratio

 

10.99

 

 

10.95

 

 

10.15

 

 

 

 

 

 

 

 

Total Risk-Based Capital Ratio

 

13.25

 

 

13.42

 

 

12.70

 

 

 

 

 

 

 

 

Tier 1 Leverage Ratio

 

8.72

 

 

8.50

 

 

8.38

 

 

 

 

 

 

 

 

Common Equity as a Percentage of Total Assets (2)

 

8.56

 

 

8.51

 

 

8.34

 

 

 

 

 

 

 

 

Tangible Common Equity Ratio (3) (5)

 

7.73

 

 

7.66

 

 

7.41

 

 

 

 

 

 

 

 

Book Value Per Common Share (4)

 

$

31.96

 

 

31.24

 

 

30.65

 

 

 

 

 

 

 

 

Tangible Book Value Per Common Share (3)

 

28.61

 

 

27.88

 

 

26.94

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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) 641-6500

Source: Synovus Financial Corp.