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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Synovus Financial Corporation | NYSE:SNV | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.20 | -0.50% | 39.47 | 250 | 14:02:38 |
Diluted earnings per share of $0.78 vs. $1.32 in 1Q23
Adjusted diluted earnings per share of $0.79 vs. $1.33 in 1Q23
$12.8 million FDIC Special Assessment reduced 1Q24 reported and adjusted EPS by $0.07
Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended March 31, 2024.
“Our first quarter results demonstrate tangible progress on our strategic priorities, including key commercial category loan and core deposit growth, client non-interest revenue growth and excellent operating expense control. We remain focused on raising the bar on service and deepening client relationships, all while building a more risk-resilient bank, which was evidenced by our highest common equity tier 1 capital ratios in several years and an over 30% decline in wholesale funding versus last year," said Synovus Chairman, CEO and President Kevin Blair.
First Quarter 2024 Highlights
First Quarter Summary
Reported
Adjusted
(dollars in thousands)
1Q24
4Q23
1Q23
1Q24
4Q23
1Q23
Net income available to common shareholders
$
114,822
$
60,645
$
193,868
$
115,973
$
116,901
$
195,276
Diluted earnings per share
0.78
0.41
1.32
0.79
0.80
1.33
Total revenue
537,734
488,682
613,877
536,745
564,593
599,469
Total loans
43,309,877
43,404,490
44,044,939
N/A
N/A
N/A
Total deposits
50,580,242
50,739,185
49,953,936
N/A
N/A
N/A
Return on avg assets
0.85
%
0.47
%
1.36
%
0.85
%
0.84
%
1.37
%
Return on avg common equity
10.2
5.9
19.2
10.3
11.3
19.4
Return on avg tangible common equity
11.7
7.0
21.9
11.8
13.3
22.1
Net interest margin
3.04
%
3.11
%
3.43
%
N/A
N/A
N/A
Efficiency ratio-TE(1)(2)
59.87
72.03
52.33
58.88
61.97
50.48
NCO ratio-QTD
0.41
0.38
0.17
N/A
N/A
N/A
NPA ratio
0.86
0.66
0.41
N/A
N/A
N/A
(1) Taxable equivalent
(2) Adjusted tangible efficiency ratio
N/A - not applicable
Balance Sheet
Loans*
(dollars in millions)
1Q24
4Q23
Linked Quarter Change
Linked Quarter % Change
1Q23
Year/Year Change
Year/Year % Change
Commercial & industrial
$
22,731.3
$
22,598.5
$
132.8
1
%
$
22,600.2
$
131.1
1
%
Commercial real estate
12,194.0
12,316.8
(122.7
)
(1
)
12,996.8
(802.7
)
(6
)
Consumer
8,384.6
8,489.2
(104.7
)
(1
)
8,448.0
(63.4
)
(1
)
Total loans
$
43,309.9
$
43,404.5
$
(94.6
)
—
%
$
44,044.9
$
(735.0
)
(2
)%
*Amounts may not total due to rounding
Deposits*
(dollars in millions)
1Q24
4Q23
Linked Quarter Change
Linked Quarter % Change
1Q23
Year/Year Change
Year/Year % Change
Non-interest-bearing DDA
$
11,515.4
$
11,801.2
$
(285.8
)
(2
)%
$
13,827.6
$
(2,312.2
)
(17
)%
Interest-bearing DDA
6,478.8
6,541.0
(62.1
)
(1
)
5,837.0
641.8
11
Money market
10,712.7
10,819.7
(107.0
)
(1
)
11,780.0
(1,067.2
)
(9
)
Savings
1,045.1
1,062.6
(17.5
)
(2
)
1,312.7
(267.6
)
(20
)
Public funds
7,270.4
7,349.5
(79.1
)
(1
)
6,888.2
382.2
6
Time deposits
7,838.9
7,122.2
716.7
10
4,060.3
3,778.6
93
Brokered deposits
5,718.9
6,043.0
(324.1
)
(5
)
6,248.3
(529.3
)
(8
)
Total deposits
$
50,580.2
$
50,739.2
$
(158.9
)
—
%
$
49,953.9
$
626.3
1
%
*Amounts may not total due to rounding
Income Statement Summary**
(in thousands, except per share data)
1Q24
4Q23
Linked Quarter Change
Linked Quarter % Change
1Q23
Year/Year Change
Year/Year % Change
Net interest income
$
418,846
$
437,214
$
(18,368
)
(4
)%
$
480,751
$
(61,905
)
(13
)%
Non-interest revenue
118,888
51,468
67,420
131
133,126
(14,238
)
(11
)
Non-interest expense
322,741
352,858
(30,117
)
(9
)
321,852
889
—
Provision for (reversal of) credit losses
53,980
45,472
8,508
19
32,154
21,826
68
Income before taxes
$
161,013
$
90,352
$
70,661
78
%
$
259,871
$
(98,858
)
(38
)%
Income tax expense
36,943
20,779
16,164
78
57,712
(20,769
)
(36
)
Net income
124,070
69,573
54,497
78
202,159
(78,089
)
(39
)
Less: Net income (loss) attributable to noncontrolling interest
(437
)
(768
)
331
(43
)
—
(437
)
NM
Net income attributable to Synovus Financial Corp.
124,507
70,341
54,166
77
202,159
(77,652
)
(38
)
Less: Preferred stock dividends
9,685
9,696
(11
)
—
8,291
1,394
17
Net income available to common shareholders
$
114,822
$
60,645
$
54,177
89
%
$
193,868
$
(79,046
)
(41
)%
Weighted average common shares outstanding, diluted
147,122
146,877
245
—
%
146,727
395
—
%
Diluted earnings per share
$
0.78
$
0.41
$
0.37
90
$
1.32
$
(0.54
)
(41
)
Adjusted diluted earnings per share
0.79
0.80
(0.01
)
(1
)
1.33
(0.54
)
(41
)
Effective tax rate
22.94
%
23.00
%
22.21
%
** Amounts may not total due to rounding
NM - not meaningful
Capital Ratios
1Q24
4Q23
1Q23
Common equity Tier 1 capital (CET1) ratio
10.38
%
*
10.22
%
9.77
%
Tier 1 capital ratio
11.44
*
11.28
10.81
Total risk-based capital ratio
13.31
*
13.07
12.72
Tier 1 leverage ratio
9.62
*
9.49
9.14
Tangible common equity ratio
6.67
6.84
6.12
* Ratios are preliminary.
First Quarter Earnings Conference Call
Synovus will host an earnings highlights conference call at 8:30 a.m. ET on April 18, 2024. 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 $60 billion in assets. Synovus provides commercial and consumer 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, capital markets and international banking. Synovus has 246 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 X, formerly known as 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, 2023, 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, non-interest expense; 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 revenue; 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 Synovus Financial Corp. 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 revenue and adjusted revenue are measures used by management to evaluate non-interest revenue and total revenue exclusive of fair value adjustment on non-qualified deferred compensation and other items not indicative of ongoing operations that could impact period-to-period comparisons. 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)
1Q24
4Q23
1Q23
Adjusted non-interest revenue
Total non-interest revenue
$
118,888
$
51,468
$
133,126
Investment securities (gains) losses, net
—
77,748
(1,030
)
Recovery of NPA
—
—
(13,126
)
Fair value adjustment on non-qualified deferred compensation
(2,299
)
(3,053
)
(1,371
)
Adjusted non-interest revenue
$
116,589
$
126,163
$
117,599
Adjusted non-interest expense
Total non-interest expense
$
322,741
$
352,858
$
321,852
(Loss) gain on other loans held for sale
—
—
(16,750
)
Gain (loss) on early extinguishment of debt
—
4,497
—
Restructuring (charges) reversals
(1,524
)
(1,231
)
733
Fair value adjustment on non-qualified deferred compensation
(2,299
)
(3,053
)
(1,371
)
Adjusted non-interest expense
$
318,918
$
353,071
$
304,464
Reconciliation of Non-GAAP Financial Measures, continued
(dollars in thousands)
1Q24
4Q23
1Q23
Adjusted revenue and tangible efficiency ratio
Adjusted non-interest expense
$
318,918
$
353,071
$
304,464
Amortization of intangibles
(2,907
)
(3,168
)
(1,857
)
Adjusted tangible non-interest expense
$
316,011
$
349,903
$
302,607
Net interest income
$
418,846
$
437,214
$
480,751
Total non-interest revenue
118,888
51,468
133,126
Total revenue
$
537,734
$
488,682
$
613,877
Tax equivalent adjustment
1,310
1,216
1,119
Total TE revenue
539,044
489,898
614,996
Recovery of NPA
—
—
(13,126
)
Investment securities losses (gains), net
—
77,748
(1,030
)
Fair value adjustment on non-qualified deferred compensation
(2,299
)
(3,053
)
(1,371
)
Adjusted revenue
$
536,745
$
564,593
$
599,469
Efficiency ratio-TE
59.87
%
72.03
%
52.33
%
Adjusted tangible efficiency ratio
58.88
61.97
50.48
Adjusted return on average assets
Net income
$
124,070
$
69,573
$
202,159
Recovery of NPA
—
—
(13,126
)
Loss (gain) on other loans held for sale
—
—
16,750
(Gain) loss on early extinguishment of debt
—
(4,497
)
—
Restructuring charges (reversals)
1,524
1,231
(733
)
Investment securities losses (gains), net
—
77,748
(1,030
)
Tax effect of adjustments(1)
(373
)
(18,226
)
(453
)
Adjusted net income
$
125,221
$
125,829
$
203,567
Net income annualized
$
499,007
$
276,023
$
819,867
Adjusted net income annualized
$
503,636
$
499,213
$
825,577
Total average assets
$
59,022,231
$
59,164,065
$
60,133,561
Return on average assets
0.85
%
0.47
%
1.36
%
Adjusted return on average assets
0.85
0.84
1.37
Adjusted net income available to common shareholders and adjusted diluted earnings per share
Net income available to common shareholders
$
114,822
$
60,645
$
193,868
Recovery of NPA
—
—
(13,126
)
Loss (gain) on other loans held for sale
—
—
16,750
(Gain) loss on early extinguishment of debt
—
(4,497
)
—
Restructuring charges (reversals)
1,524
1,231
(733
)
Investment securities losses (gains), net
—
77,748
(1,030
)
Tax effect of adjustments(1)
(373
)
(18,226
)
(453
)
Adjusted net income available to common shareholders
$
115,973
$
116,901
$
195,276
Weighted average common shares outstanding, diluted
147,122
146,877
146,727
Diluted earnings per share
$
0.78
$
0.41
$
1.32
Adjusted diluted earnings per share
0.79
0.80
1.33
(1) An assumed marginal tax rate of 24.5% for 1Q24 and 4Q23 and 24.3% for 1Q23 was applied.
Reconciliation of Non-GAAP Financial Measures, continued
(dollars in thousands)
1Q24
4Q23
1Q23
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
$
114,822
$
60,645
$
193,868
Recovery of NPA
—
—
(13,126
)
Loss (gain) on other loans held for sale
—
—
16,750
(Gain) loss on early extinguishment of debt
—
(4,497
)
—
Restructuring charges (reversals)
1,524
1,231
(733
)
Investment securities losses (gains), net
—
77,748
(1,030
)
Tax effect of adjustments(1)
(373
)
(18,226
)
(453
)
Adjusted net income available to common shareholders
$
115,973
$
116,901
$
195,276
Adjusted net income available to common shareholders annualized
$
466,441
$
463,792
$
791,953
Amortization of intangibles, tax effected, annualized
8,831
9,493
5,699
Adjusted net income available to common shareholders excluding amortization of intangibles annualized
$
475,272
$
473,285
$
797,652
Net income available to common shareholders annualized
$
461,812
$
240,602
$
786,242
Amortization of intangibles, tax effected, annualized
8,831
9,493
5,699
Net income available to common shareholders excluding amortization of intangibles annualized
$
470,643
$
250,095
$
791,941
Total average Synovus Financial Corp. shareholders' equity less preferred stock
$
4,542,616
$
4,090,163
$
4,088,777
Average goodwill
(480,440
)
(479,858
)
(452,390
)
Average other intangible assets, net
(44,497
)
(47,502
)
(26,245
)
Total average Synovus Financial Corp. tangible shareholders' equity less preferred stock
$
4,017,679
$
3,562,803
$
3,610,142
Return on average common equity
10.2
%
5.9
%
19.2
%
Adjusted return on average common equity
10.3
11.3
19.4
Return on average tangible common equity
11.7
7.0
21.9
Adjusted return on average tangible common equity
11.8
13.3
22.1
(1) An assumed marginal tax rate of 24.5% for 1Q24 and 4Q23 and 24.3% for 1Q23 was applied.
(dollars in thousands)
March 31, 2024
December 31, 2023
March 31, 2023
Tangible common equity ratio
Total assets
$
59,835,120
$
59,809,534
$
61,840,025
Goodwill
(480,440
)
(480,440
)
(452,390
)
Other intangible assets, net
(43,021
)
(45,928
)
(25,267
)
Tangible assets
$
59,311,659
$
59,283,166
$
61,362,368
Total Synovus Financial Corp. shareholders’ equity
$
5,017,918
$
5,119,993
$
4,770,130
Goodwill
(480,440
)
(480,440
)
(452,390
)
Other intangible assets, net
(43,021
)
(45,928
)
(25,267
)
Preferred Stock, no par value
(537,145
)
(537,145
)
(537,145
)
Tangible common equity
$
3,957,312
$
4,056,480
$
3,755,328
Total Synovus Financial Corp. shareholders’ equity to total assets ratio
8.39
%
8.56
%
7.71
%
Tangible common equity ratio
6.67
6.84
6.12
Amounts may not total due to rounding
Synovus
INCOME STATEMENT DATA
(Unaudited)
(Dollars in thousands, except per share data)
2024
2023
First Quarter
First Quarter
Fourth Quarter
Third Quarter
Second Quarter
First Quarter
'24 vs '23
% Change
Interest income
$
782,710
788,297
786,039
759,143
716,879
9
%
Interest expense
363,864
351,083
342,880
303,612
236,128
54
Net interest income
418,846
437,214
443,159
455,531
480,751
(13
)
Provision for (reversal of) credit losses
53,980
45,472
72,572
38,881
32,154
68
Net interest income after provision for credit losses
364,866
391,742
370,587
416,650
448,597
(19
)
Non-interest revenue:
Service charges on deposit accounts
21,813
22,260
21,385
23,477
22,974
(5
)
Fiduciary and asset management fees
19,013
18,149
20,205
20,027
19,696
(3
)
Card fees
19,486
20,872
18,602
17,059
15,824
23
Brokerage revenue
22,707
21,961
21,387
22,451
24,204
(6
)
Mortgage banking income
3,418
3,019
3,671
4,609
3,858
(11
)
Capital markets income
6,627
6,456
7,980
9,482
15,127
(56
)
Income from bank-owned life insurance
7,347
10,324
6,965
6,878
7,262
1
Investment securities gains (losses), net
—
(77,748
)
—
—
1,030
nm
Recovery of NPA
—
—
—
—
13,126
nm
Other non-interest revenue
18,477
26,175
6,944
8,293
10,025
84
Total non-interest revenue
118,888
51,468
107,139
112,276
133,126
(11
)
Non-interest expense:
Salaries and other personnel expense
188,521
176,712
179,741
183,001
188,924
—
Net occupancy, equipment, and software expense
46,808
48,146
45,790
42,785
42,860
9
Third-party processing and other services
20,258
21,717
21,439
21,659
21,833
(7
)
Professional fees
7,631
11,147
10,147
9,597
8,963
(15
)
FDIC insurance and other regulatory fees
23,819
61,470
11,837
11,162
10,268
132
Restructuring charges (reversals)
1,524
1,231
17,319
(110
)
(733
)
nm
Loss on other loans held for sale
—
—
30,954
2,360
16,750
nm
Other operating expenses
34,180
32,435
36,305
36,727
32,987
4
Total non-interest expense
322,741
352,858
353,532
307,181
321,852
—
Income before income taxes
161,013
90,352
124,194
221,745
259,871
(38
)
Income tax expense
36,943
20,779
27,729
47,801
57,712
(36
)
Net income
124,070
69,573
96,465
173,944
202,159
(39
)
Less: Net income (loss) attributable to noncontrolling interest
(437
)
(768
)
(630
)
(166
)
—
nm
Net income attributable to Synovus Financial Corp.
124,507
70,341
97,095
174,110
202,159
(38
)
Less: Preferred stock dividends
9,685
9,696
9,672
8,291
8,291
17
Net income available to common shareholders
$
114,822
60,645
87,423
165,819
193,868
(41
)%
Net income per common share, basic
$
0.78
0.41
0.60
1.13
1.33
(41
)%
Net income per common share, diluted
0.78
0.41
0.60
1.13
1.32
(41
)
Cash dividends declared per common share
0.38
0.38
0.38
0.38
0.38
—
Return on average assets *
0.85
%
0.47
0.64
1.15
1.36
(51) bps
Return on average common equity *
10.2
5.9
8.2
15.5
19.2
(900
)
Weighted average common shares outstanding, basic
146,430
146,372
146,170
146,113
145,799
—
%
Weighted average common shares outstanding, diluted
147,122
146,877
146,740
146,550
146,727
—
nm - not meaningful
bps - basis points
* - ratios are annualized
Amounts may not total due to rounding
Synovus
BALANCE SHEET DATA
March 31, 2024
December 31, 2023
March 31, 2023
(Unaudited)
(In thousands, except share data)
ASSETS
Interest-earning deposits with banks and other cash and cash equivalents
$
2,379,778
$
2,414,103
$
3,329,882
Federal funds sold and securities purchased under resale agreements
43,722
37,323
35,518
Cash, cash equivalents, and restricted cash
2,423,500
2,451,426
3,365,400
Investment securities available for sale, at fair value
9,694,515
9,788,662
9,732,618
Loans held for sale (includes $36,698, $47,338 and $44,400 measured at fair value, respectively)
130,586
52,768
669,447
Loans, net of deferred fees and costs
43,309,877
43,404,490
44,044,939
Allowance for loan losses
(492,661
)
(479,385
)
(457,010
)
Loans, net
42,817,216
42,925,105
43,587,929
Cash surrender value of bank-owned life insurance
1,119,379
1,112,030
1,094,072
Premises, equipment, and software, net
375,315
365,851
367,089
Goodwill
480,440
480,440
452,390
Other intangible assets, net
43,021
45,928
25,267
Other assets
2,751,148
2,587,324
2,545,813
Total assets
$
59,835,120
$
59,809,534
$
61,840,025
LIABILITIES AND EQUITY
Liabilities:
Deposits:
Non-interest-bearing deposits
$
12,042,353
$
12,507,616
$
14,642,677
Interest-bearing deposits
38,537,889
38,231,569
35,311,259
Total deposits
50,580,242
50,739,185
49,953,936
Federal funds purchased and securities sold under repurchase agreements
128,244
189,074
195,695
Other short-term borrowings
252,469
3,496
253,152
Long-term debt
2,031,735
1,932,534
5,146,252
Other liabilities
1,800,794
1,801,097
1,520,860
Total liabilities
54,793,484
54,665,386
57,069,895
Equity:
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 171,873,265, 171,360,188 and 170,713,864 respectively; outstanding 146,418,407, 146,705,330 and 146,059,006 respectively
171,873
171,360
170,714
Additional paid-in capital
3,957,576
3,955,819
3,925,449
Treasury stock, at cost; 25,454,858, 24,654,858 and 24,654,858 shares, respectively
(974,499
)
(944,484
)
(944,484
)
Accumulated other comprehensive income (loss), net
(1,248,194
)
(1,117,073
)
(1,289,327
)
Retained earnings
2,574,017
2,517,226
2,370,633
Total Synovus Financial Corp. shareholders’ equity
5,017,918
5,119,993
4,770,130
Noncontrolling interest in subsidiary
23,718
24,155
—
Total equity
5,041,636
5,144,148
4,770,130
Total liabilities and equity
$
59,835,120
$
59,809,534
$
61,840,025
Synovus
AVERAGE BALANCES, INTEREST, AND YIELDS/RATES
(Unaudited)
First Quarter 2024
Fourth Quarter 2023
First Quarter 2023
(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)
$
34,943,797
$
583,459
6.72
%
$
35,106,156
$
590,588
6.67
%
$
35,030,809
$
526,529
6.10
%
Consumer loans (1) (2)
8,434,105
109,566
5.21
8,491,244
109,509
5.14
8,762,631
104,147
4.78
Less: Allowance for loan losses
(481,146
)
—
—
(480,332
)
—
—
(445,192
)
—
—
Loans, net
42,896,756
693,025
6.49
43,117,068
700,097
6.45
43,348,248
630,676
5.89
Investment securities available for sale
11,148,242
71,906
2.58
11,164,487
65,176
2.33
11,293,958
61,054
2.16
Trading account assets
11,567
65
2.25
13,067
215
6.59
11,338
124
4.39
Other earning assets(4)
1,218,090
16,173
5.25
1,463,176
19,689
5.26
1,513,800
17,212
4.55
FHLB and Federal Reserve Bank stock
187,825
2,273
4.84
187,015
3,536
7.56
306,935
3,355
4.37
Mortgage loans held for sale
29,773
495
6.65
39,024
696
7.14
36,497
566
6.20
Other loans held for sale
18,465
83
1.77
8,044
104
5.06
443,690
5,011
4.52
Total interest earning assets
55,510,718
784,020
5.68
%
55,991,881
789,513
5.59
%
56,954,466
717,998
5.11
%
Cash and due from banks
532,624
522,986
643,502
Premises and equipment
370,376
366,647
370,275
Other real estate
61
—
—
Cash surrender value of bank-owned life insurance
1,114,703
1,108,766
1,091,080
Other assets(5)
1,493,749
1,173,785
1,074,238
Total assets
$
59,022,231
$
59,164,065
$
60,133,561
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing demand deposits
$
10,590,340
65,415
2.48
%
$
10,422,286
58,588
2.23
%
$
9,088,533
23,218
1.04
%
Money market accounts
12,826,385
103,129
3.23
13,053,781
103,211
3.14
14,397,683
72,618
2.05
Savings deposits
1,057,087
287
0.11
1,098,914
275
0.10
1,370,173
211
0.06
Time deposits
7,902,850
86,493
4.40
7,198,229
75,462
4.16
3,601,288
21,496
2.42
Brokered deposits
5,737,445
77,342
5.42
6,069,055
81,444
5.32
5,553,970
56,392
4.12
Federal funds purchased and securities sold under repurchase agreements
113,558
648
2.26
93,854
350
1.46
133,360
670
2.01
Other short-term borrowings
71,775
955
5.26
2,672
51
7.50
1,677,519
18,994
4.53
Long-term debt
1,764,740
29,595
6.69
1,922,661
31,702
6.55
3,148,062
42,529
5.41
Total interest-bearing liabilities
40,064,180
363,864
3.65
%
39,861,452
351,083
3.49
%
38,970,588
236,128
2.46
%
Non-interest-bearing demand deposits
12,071,670
12,744,275
15,014,224
Other liabilities
1,782,659
1,906,686
1,522,827
Total equity
5,103,722
4,651,652
4,625,922
Total liabilities and equity
$
59,022,231
$
59,164,065
$
60,133,561
Net interest income and net interest margin, taxable equivalent (6)
$
420,156
3.04
%
$
438,430
3.11
%
$
481,870
3.43
%
Less: taxable-equivalent adjustment
1,310
1,216
1,119
Net interest income
$
418,846
$
437,214
$
480,751
(1)
Average loans are shown net of deferred fees and costs. NPLs are included.
(2)
Interest income includes net loan fees as follows: First Quarter 2024 — $10.6 million, Fourth Quarter 2023 — $13.1 million, and First Quarter 2023 — $11.5 million.
(3)
Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans 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 $(1.36) billion, $(1.89) billion, and $(1.52) billion for the First Quarter 2024, Fourth Quarter 2023, and First Quarter 2023, respectively.
(6)
The net interest margin is calculated by dividing annualized net interest income-taxable equivalent by average total interest earning assets.
Synovus
LOANS OUTSTANDING BY TYPE
(Unaudited)
(Dollars in thousands)
Total Loans
Total Loans
Linked Quarter
Total Loans
Year/Year
Loan Type
March 31, 2024
December 31, 2023
% Change
March 31, 2023
% Change
Commercial, Financial, and Agricultural
$
14,616,902
$
14,459,345
1
%
$
14,201,398
3
%
Owner-Occupied
8,114,394
8,139,148
—
8,398,778
(3
)
Total Commercial & Industrial
22,731,296
22,598,493
1
22,600,176
1
Multi-Family
4,199,435
4,098,188
2
3,374,129
24
Hotels
1,790,505
1,803,102
(1
)
1,737,163
3
Office Buildings
1,852,208
1,891,587
(2
)
3,071,236
(40
)
Shopping Centers
1,302,754
1,319,049
(1
)
1,332,078
(2
)
Warehouses
871,662
854,475
2
1,020,921
(15
)
Other Investment Property
1,294,317
1,396,903
(7
)
1,441,303
(10
)
Total Investment Properties
11,310,881
11,363,304
—
11,976,830
(6
)
1-4 Family Construction
194,146
194,481
—
201,896
(4
)
1-4 Family Investment Mortgage
385,992
404,021
(4
)
394,754
(2
)
Total 1-4 Family Properties
580,138
598,502
(3
)
596,650
(3
)
Commercial Development
66,000
73,022
(10
)
63,004
5
Residential Development
72,024
79,961
(10
)
106,872
(33
)
Land Acquisition
164,976
201,969
(18
)
253,399
(35
)
Land and Development
303,000
354,952
(15
)
423,275
(28
)
Total Commercial Real Estate
12,194,019
12,316,758
(1
)
12,996,755
(6
)
Consumer Mortgages
5,384,602
5,411,723
(1
)
5,246,640
3
Home Equity
1,804,348
1,807,399
—
1,757,250
3
Credit Cards
180,663
194,141
(7
)
184,595
(2
)
Other Consumer Loans
1,014,949
1,075,976
(6
)
1,259,523
(19
)
Total Consumer
8,384,562
8,489,239
(1
)
8,448,008
(1
)
Total
$
43,309,877
$
43,404,490
—
%
$
44,044,939
(2
)%
NON-PERFORMING LOANS COMPOSITION
(Unaudited)
(Dollars in thousands)
Total
Total
Total
Non-performing Loans
Non-performing Loans
Linked Quarter
Non-performing Loans
Year/Year
Loan Type
March 31, 2024
December 31, 2023
% Change
March 31, 2023
% Change
Commercial, Financial, and Agricultural
$
192,693
$
89,870
114
%
$
94,196
105
%
Owner-Occupied
80,218
91,370
(12
)
25,591
213
Total Commercial & Industrial
272,911
181,240
51
119,787
128
Multi-Family
2,077
1,681
24
1,806
15
Office Buildings
7,630
35,338
(78
)
190
nm
Shopping Centers
547
641
(15
)
727
(25
)
Warehouses
188
196
(4
)
222
(15
)
Other Investment Property
1,784
1,914
(7
)
668
167
Total Investment Properties
12,226
39,770
(69
)
3,613
238
1-4 Family Investment Mortgage
2,300
3,056
(25
)
3,515
(35
)
Total 1-4 Family Properties
2,300
3,056
(25
)
3,515
(35
)
Residential Development
478
267
79
267
79
Land Acquisition
540
537
1
886
(39
)
Land and Development
1,018
804
27
1,153
(12
)
Total Commercial Real Estate
15,544
43,630
(64
)
8,281
88
Consumer Mortgages
42,563
46,108
(8
)
39,536
8
Home Equity
12,451
10,473
19
7,967
56
Other Consumer Loans
6,981
6,726
4
6,889
1
Total Consumer
61,995
63,307
(2
)
54,392
14
Total
$
350,450
$
288,177
22
%
$
182,460
92
%
Synovus
CREDIT QUALITY DATA
(Unaudited)
(Dollars in thousands)
2024
2023
First Quarter
First
Fourth
Third
Second
First
'24 vs '23
Quarter
Quarter
Quarter
Quarter
Quarter
% Change
Non-performing Loans (NPLs)
$
350,450
288,177
280,532
261,506
182,460
92
%
Other Real Estate and Other Assets
21,210
—
—
—
—
nm
Non-performing Assets (NPAs)
371,660
288,177
280,532
261,506
182,460
104
Allowance for Loan Losses (ALL)
492,661
479,385
477,532
471,238
457,010
8
Reserve for Unfunded Commitments
53,579
57,231
55,185
55,729
57,473
(7
)
Allowance for Credit Losses (ACL)
546,240
536,616
532,717
526,967
514,483
6
Net Charge-Offs - Quarter
44,356
41,574
66,822
26,396
18,550
Net Charge-Offs - YTD
44,356
153,342
111,768
44,946
18,550
Net Charge-Offs / Average Loans - Quarter (1)
0.41
%
0.38
0.61
0.24
0.17
Net Charge-Offs / Average Loans - YTD (1)
0.41
0.35
0.34
0.20
0.17
NPLs / Loans
0.81
0.66
0.64
0.59
0.41
NPAs / Loans, ORE and specific other assets
0.86
0.66
0.64
0.59
0.41
ACL/Loans
1.26
1.24
1.22
1.19
1.17
ALL/Loans
1.14
1.10
1.09
1.06
1.04
ACL/NPLs
155.87
186.21
189.90
201.51
281.97
ALL/NPLs
140.58
166.35
170.22
180.20
250.47
Past Due Loans over 90 days and Still Accruing
$
3,748
5,053
3,792
3,643
3,529
6
As a Percentage of Loans Outstanding
0.01
%
0.01
0.01
0.01
0.01
Total Past Due Loans and Still Accruing
$
54,814
59,099
54,974
84,946
55,053
—
As a Percentage of Loans Outstanding
0.13
%
0.14
0.13
0.19
0.12
(1) Ratio is annualized.
SELECTED CAPITAL INFORMATION (1)
(Unaudited)
(Dollars in thousands)
March 31, 2024
December 31, 2023
March 31, 2023
Common Equity Tier 1 Capital Ratio
10.38
%
10.22
9.77
Tier 1 Capital Ratio
11.44
11.28
10.81
Total Risk-Based Capital Ratio
13.31
13.07
12.72
Tier 1 Leverage Ratio
9.62
9.49
9.14
Total Synovus Financial Corp. shareholders' equity as a Percentage of Total Assets
8.39
8.56
7.71
Tangible Common Equity Ratio (2) (4)
6.67
6.84
6.12
Book Value Per Common Share (3)
$
30.60
31.24
28.98
Tangible Book Value Per Common Share (2)
27.03
27.65
25.71
(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 Synovus Financial Corp. shareholders’ equity less Preferred stock divided by total common shares outstanding.
(4) See "Non-GAAP Financial Measures" for applicable reconciliation.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240416411238/en/
Media Contact Audria Belton Media Relations media@synovus.com
Investor Contact Jennifer H. Demba, CFA Investor Relations investorrelations@synovus.com
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