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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 | |
---|---|---|---|---|---|---|---|---|
0.74 | 1.93% | 39.12 | 39.14 | 38.05 | 38.17 | 850,148 | 01:00:00 |
Diluted earnings per share of $0.41 vs. $1.35 in 4Q22
Adjusted diluted earnings per share of $0.80 vs. $1.35 in 4Q22
$51 million FDIC special assessment reduced 4Q23 reported and adjusted EPS by $0.26
Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter and year ended Dec. 31, 2023. “Synovus' 2023 financial performance is a testament to our resilience and the strength of our business model,” said Synovus Chairman, CEO and President Kevin Blair. “Amid a challenging economic landscape in 2023, we broadened client relationships, further diversified our business mix, streamlined expenses and took strategic actions to optimize the balance sheet. Our strong banking footprint and ongoing investments in talent, capabilities, functionalities and new revenue sources fuel the bank’s path to solid growth. We persist in bolstering our core deposit generation, enriching lending diversification, enhancing expense efficiency and delivering world-class client service. As we execute our plan, we're confident momentum will build throughout 2024 and beyond for Synovus.”
2023 Highlights
Fourth Quarter 2023 Highlights
Fourth Quarter 2023 Summary
Reported
Adjusted
(dollars in thousands)
4Q23
3Q23
4Q22
4Q23
3Q23
4Q22
Net income available to common shareholders
$
60,645
$
87,423
$
197,479
$
116,901
$
122,770
$
197,576
Diluted earnings per share
0.41
0.60
1.35
0.80
0.84
1.35
Total revenue
488,682
550,298
603,785
564,593
550,552
603,359
Total loans
43,404,490
43,679,910
43,716,353
N/A
N/A
N/A
Total deposits
50,739,185
50,203,890
48,871,559
N/A
N/A
N/A
Return on avg assets
0.47
%
0.64
%
1.38
%
0.84
%
0.87
%
1.39
%
Return on avg common equity
5.9
8.2
20.9
11.3
11.5
20.9
Return on avg tangible common equity
7.0
9.7
24.2
13.3
13.5
24.2
Net interest margin
3.11
%
3.11
%
3.56
%
N/A
N/A
N/A
Efficiency ratio-TE(1)(2)
72.03
64.11
51.08
61.97
55.01
50.58
NCO ratio-QTD
0.38
0.61
0.12
N/A
N/A
N/A
NPA ratio
0.66
0.64
0.33
N/A
N/A
N/A
(1) Taxable equivalent
(2) Adjusted tangible efficiency ratio
Balance Sheet
Loans*
(dollars in millions)
4Q23
3Q23
Linked Quarter Change
Linked Quarter % Change
4Q22
Year/Year Change
Year/Year % Change
Commercial & industrial
$
22,598.5
$
22,781.0
$
(182.5
)
(1
)%
$
22,066.7
$
531.8
2
%
Commercial real estate
12,316.8
12,394.9
(78.1
)
(1
)
12,650.3
(333.6
)
(3
)
Consumer
8,489.2
8,504.1
(14.9
)
—
8,999.4
(510.1
)
(6
)
Total loans
$
43,404.5
$
43,679.9
$
(275.4
)
(1
)%
$
43,716.4
$
(311.9
)
(1
)%
* Amounts may not total due to rounding
Deposits*
(dollars in millions)
4Q23
3Q23
Linked Quarter Change
Linked Quarter % Change
4Q22
Year/Year Change
Year/Year % Change
Non-interest-bearing DDA
$
11,801.2
$
12,395.1
$
(593.9
)
(5)%
$
14,574.5
$
(2,773.3
)
(19
)%
Interest-bearing DDA
6,541.0
6,276.1
264.9
4
5,761.4
779.6
14
Money market
10,819.7
10,786.3
33.5
—
12,480.7
(1,661.0
)
(13
)
Savings
1,062.6
1,132.5
(69.9
)
(6
)
1,396.4
(333.8
)
(24
)
Public funds
7,349.5
6,885.7
463.8
7
6,635.6
714.0
11
Time deposits
7,122.2
6,506.4
615.8
9
2,724.1
4,398.1
161
Brokered deposits
6,043.0
6,221.8
(178.8
)
(3
)
5,299.0
744.0
14
Total deposits
$
50,739.2
$
50,203.9
$
535.3
1
%
$
48,871.6
$
1,867.6
4
%
* Amounts may not total due to rounding
Income Statement Summary*
(in thousands, except per share data)
4Q23
3Q23
Linked Quarter Change
Linked Quarter % Change
4Q22
Year/Year Change
Year/Year % Change
Net interest income
$
437,214
$
443,159
$
(5,945
)
(1
)%
$
501,346
$
(64,132
)
(13
)%
Non-interest revenue
51,468
107,139
(55,671
)
(52
)
102,439
(50,971
)
(50
)
Non-interest expense
352,858
353,532
(674
)
—
308,996
43,862
14
Provision for (reversal of) credit losses
45,472
72,572
(27,100
)
(37
)
34,884
10,588
30
Income before taxes
$
90,352
$
124,194
$
(33,842
)
(27
)%
$
259,905
$
(169,553
)
(65
)%
Income tax expense
20,779
27,729
(6,950
)
(25
)
54,135
(33,356
)
(62
)
Net income
69,573
96,465
(26,892
)
(28
)
205,770
(136,197
)
(66
)
Less: Net income (loss) attributable to noncontrolling interest
(768
)
(630
)
(138
)
22
—
(768
)
nm
Net income attributable to Synovus Financial Corp.
70,341
97,095
(26,754
)
(28
)
205,770
(135,429
)
(66
)
Less: Preferred stock dividends
9,696
9,672
24
—
8,291
1,405
17
Net income available to common shareholders
$
60,645
$
87,423
$
(26,778
)
(31
)%
$
197,479
$
(136,834
)
(69
)%
Weighted average common shares outstanding, diluted
146,877
146,740
137
—
146,528
349
—
Diluted earnings per share
$
0.41
$
0.60
$
(0.19
)
(32
)%
$
1.35
$
(0.94
)
(70
)%
Adjusted diluted earnings per share
$
0.80
$
0.84
$
(0.04
)
(5
)
$
1.35
$
(0.55
)
(41
) %
Effective tax rate
23.00
%
22.33
%
20.83
%
* Amounts may not total due to rounding
Capital Ratios
4Q23
3Q23
4Q22
Common equity Tier 1 capital (CET1) ratio
10.22
%
*
10.13
%
9.63
%
Tier 1 capital ratio
11.28
*
11.18
10.68
Total risk-based capital ratio
13.07
*
13.12
12.54
Tier 1 leverage ratio
9.49
*
9.38
9.07
Tangible common equity ratio
6.84
5.90
5.84
* Ratios are preliminary
Fourth Quarter 2023 Earnings Conference Call
Synovus will host an earnings highlights conference call at 8:30 a.m. ET on Jan. 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/events. 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 intended strategies, initiatives, and other operational and execution goals; 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, 2022, 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 net income available to common shareholders; adjusted diluted earnings per share; adjusted non-interest revenue, adjusted non-interest expense; adjusted revenue; adjusted tangible efficiency ratio; 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 net income available to common shareholders; diluted earnings per share; total non-interest revenue; total non-interest expense; total revenue; efficiency ratio-TE; 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 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. 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. 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
(in thousands, except per share data)
4Q23
3Q23
4Q22
2023
2022
Adjusted net income available to common shareholders and adjusted net income per common share, diluted
Net income available to common shareholders
$
60,645
$
87,423
$
197,479
$
507,755
$
724,739
(Gain) on sale of GLOBALT
—
(1,929
)
—
(1,929
)
—
Restructuring charges (reversals)
1,231
17,319
(2,372
)
17,707
(9,690
)
Valuation adjustment to Visa derivative
—
900
2,500
3,927
6,000
(Gain) loss on early extinguishment of debt
(4,497
)
(526
)
—
(5,400
)
677
Recovery of NPA
—
—
—
(13,126
)
—
Loss on other loans held for sale
—
30,954
—
50,064
—
Investment securities (gains) losses, net
77,748
—
—
76,718
—
Tax effect of adjustments(1)
(18,226
)
(11,371
)
(31
)
(31,312
)
733
Adjusted net income available to common shareholders
$
116,901
$
122,770
$
197,576
$
604,404
$
722,459
Weighted average common shares outstanding, diluted
146,877
146,740
146,528
146,734
146,481
Net income per common share, diluted
$
0.41
$
0.60
$
1.35
$
3.46
$
4.95
Adjusted net income per common share, diluted
0.80
0.84
1.35
4.12
4.93
(1) An assumed marginal tax rate of 24.5% for 4Q23 and 2023 and 24.3% for 3Q23, 4Q22, and 2022 was applied.
Reconciliation of Non-GAAP Financial Measures, continued
(dollars in thousands)
4Q23
3Q23
4Q22
2023
2022
Adjusted non-interest revenue
Total non-interest revenue
$
51,468
$
107,139
$
102,439
$
404,010
$
409,336
(Gain) on sale of GLOBALT
—
(1,929
)
—
(1,929
)
—
Recovery of NPA
—
—
—
(13,126
)
—
Investment securities (gains) losses, net
77,748
—
—
76,718
—
Fair value adjustment on non-qualified deferred compensation
(3,053
)
1,035
(1,557
)
(4,987
)
4,054
Adjusted non-interest revenue
$
126,163
$
106,245
$
100,882
$
460,686
$
413,390
Adjusted non-interest expense
Total non-interest expense
$
352,858
$
353,532
$
308,996
$
1,335,424
$
1,157,506
(Loss) gain on other loans held for sale
—
(30,954
)
—
(50,064
)
—
Restructuring (charges) reversals
(1,231
)
(17,319
)
2,372
(17,707
)
9,690
Valuation adjustment to Visa derivative
—
(900
)
(2,500
)
(3,927
)
(6,000
)
Gain (loss) on early extinguishment of debt
4,497
526
—
5,400
(677
)
Fair value adjustment on non-qualified deferred compensation
(3,053
)
1,035
(1,557
)
(4,987
)
4,054
Adjusted non-interest expense
$
353,071
$
305,920
$
307,311
$
1,264,139
$
1,164,573
(dollars in thousands)
4Q23
3Q23
4Q22
Adjusted revenue and tangible efficiency ratio
Adjusted non-interest expense
$
353,071
$
305,920
$
307,311
Amortization of intangibles
(3,168
)
(3,042
)
(2,118
)
Adjusted tangible non-interest expense
$
349,903
$
302,878
$
305,193
Net interest income
$
437,214
$
443,159
$
501,346
Total non-interest revenue
51,468
107,139
102,439
Total revenue
488,682
550,298
603,785
Tax equivalent adjustment
1,216
1,148
1,131
Total TE revenue
489,898
551,446
604,916
(Gain) on sale of GLOBALT
—
(1,929
)
—
Recovery of NPA
—
—
—
Investment securities (gains) losses, net
77,748
—
—
Fair value adjustment on non-qualified deferred compensation
(3,053
)
1,035
(1,557
)
Adjusted revenue
$
564,593
$
550,552
$
603,359
Efficiency ratio-TE
72.03
%
64.11
%
51.08
%
Adjusted tangible efficiency ratio
61.97
55.01
50.58
Reconciliation of Non-GAAP Financial Measures, continued
(in thousands, except per share data)
4Q23
3Q23
4Q22
Adjusted return on average assets (annualized)
Net income
$
69,573
$
96,465
$
205,770
Loss on other loans held for sale
—
30,954
—
Restructuring charges (reversals)
1,231
17,319
(2,372
)
(Gain) on sale of GLOBALT
—
(1,929
)
—
Valuation adjustment to Visa derivative
—
900
2,500
(Gain) on early extinguishment of debt
(4,497
)
(526
)
—
Investment securities (gains) losses, net
77,748
—
—
Tax effect of adjustments(1)
(18,226
)
(11,371
)
(31
)
Adjusted net income
$
125,829
$
131,812
$
205,867
Net income annualized
$
276,023
$
382,714
$
816,370
Adjusted net income annualized
$
499,213
$
522,950
$
816,755
Total average assets
$
59,164,065
$
59,916,679
$
58,963,417
Return on average assets (annualized)
0.47
%
0.64
%
1.38
%
Adjusted return on average assets (annualized)
0.84
0.87
1.39
(1) An assumed marginal tax rate of 24.5% for 4Q23 and 24.3% for both 3Q23 and 4Q22 was applied.
Reconciliation of Non-GAAP Financial Measures, continued
(dollars in thousands)
4Q23
3Q23
4Q22
Adjusted return on average common equity, return on average tangible common equity, and adjusted return on average tangible common equity (annualized)
Net income available to common shareholders
$
60,645
$
87,423
$
197,479
Loss on other loans held for sale
—
30,954
—
Restructuring charges (reversals)
1,231
17,319
(2,372
)
(Gain) on sale of GLOBALT
—
(1,929
)
—
Valuation adjustment to Visa derivative
—
900
2,500
(Gain) on early extinguishment of debt
(4,497
)
(526
)
—
Subtract/add: Investment securities (gains) losses, net
77,748
—
—
Subtract/add: Tax effect of adjustments(1)
(18,226
)
(11,371
)
(31
)
Adjusted net income available to common shareholders
$
116,901
$
122,770
$
197,576
Adjusted net income available to common shareholders annualized
$
463,792
$
487,077
$
783,861
Amortization of intangibles, tax effected, annualized
9,493
9,131
6,358
Adjusted net income available to common shareholders excluding amortization of intangibles annualized
$
473,285
$
496,208
$
790,219
Net income available to common shareholders annualized
$
240,602
$
346,841
$
783,476
Amortization of intangibles, tax effected, annualized
9,493
9,131
6,358
Net income available to common shareholders excluding amortization of intangibles annualized
$
250,095
$
355,972
$
789,834
Total average Synovus Financial Corp. shareholders' equity less preferred stock
$
4,090,163
$
4,223,422
$
3,742,927
Average goodwill
(479,858
)
(476,408
)
(452,390
)
Average other intangible assets, net
(47,502
)
(59,016
)
(28,174
)
Total average Synovus Financial Corp. tangible shareholders' equity less preferred stock
$
3,562,803
$
3,687,998
$
3,262,363
Return on average common equity (annualized)
5.9
%
8.2
%
20.9
%
Adjusted return on average common equity (annualized)
11.3
11.5
20.9
Return on average tangible common equity (annualized)
7.0
9.7
24.2
Adjusted return on average tangible common equity (annualized)
13.3
13.5
24.2
(1) An assumed marginal tax rate of 24.5% for 4Q23 and 24.3% for both 3Q23 and 4Q22 was applied.
Reconciliation of Non-GAAP Financial Measures, continued
December 31,
September 30,
December 31,
(dollars in thousands)
2023
2023
2022
Tangible common equity ratio
Total assets
$
59,809,534
$
59,342,930
$
59,731,378
Goodwill
(480,440
)
(479,851
)
(452,390
)
Other intangible assets, net
(45,928
)
(49,096
)
(27,124
)
Tangible assets
$
59,283,166
$
58,813,983
$
59,251,864
Total Synovus Financial Corp. shareholders' equity
$
5,119,993
$
4,536,958
$
4,475,801
Goodwill
(480,440
)
(479,851
)
(452,390
)
Other intangible assets, net
(45,928
)
(49,096
)
(27,124
)
Preferred stock, no par value
(537,145
)
(537,145
)
(537,145
)
Tangible common equity
$
4,056,480
$
3,470,866
$
3,459,142
Total Synovus Financial Corp. shareholders’ equity to total assets ratio
8.56
%
7.65
%
7.49
%
Tangible common equity ratio
6.84
5.90
5.84
Synovus
INCOME STATEMENT DATA
(Unaudited)
Years Ended
(Dollars in thousands, except per share data)
December 31,
2023
2022
% Change
Interest income
$
3,050,358
$
2,075,787
47
%
Interest expense
1,233,703
278,887
342
Net interest income
1,816,655
1,796,900
1
Provision for (reversal of) credit losses
189,079
84,553
124
Net interest income after provision for credit losses
1,627,576
1,712,347
(5
)
Non-interest revenue:
Service charges on deposit accounts
90,096
93,067
(3
)
Fiduciary and asset management fees
78,077
78,414
—
Card fees
72,357
61,833
17
Brokerage revenue
83,431
67,034
24
Mortgage banking income
15,157
17,476
(13
)
Capital markets income
32,181
26,702
21
Income from bank-owned life insurance
31,429
29,720
6
Investment securities gains (losses), net
(76,718
)
—
nm
Recovery of NPA
13,126
—
nm
Other non-interest revenue
64,874
35,090
85
Total non-interest revenue
404,010
409,336
(1
)
Non-interest expense:
Salaries and other personnel expense
728,378
681,710
7
Net occupancy, equipment, and software expense
179,581
174,730
3
Third-party processing and other services
86,649
88,617
(2
)
Professional fees
39,854
37,189
7
FDIC insurance and other regulatory fees
94,737
29,083
226
Restructuring charges (reversals)
17,707
(9,690
)
(283
)
Loss on other loans held for sale
50,064
—
nm
Other operating expenses
138,454
155,867
(11
)
Total non-interest expense
1,335,424
1,157,506
15
Income before income taxes
696,162
964,177
(28
)
Income tax expense
154,021
206,275
(25
)
Net income
542,141
757,902
(28
)
Less: Net income (loss) attributable to noncontrolling interest
(1,564
)
—
nm
Net income attributable to Synovus Financial Corp.
543,705
757,902
(28
)
Less: Preferred stock dividends
35,950
33,163
8
Net income available to common shareholders
$
507,755
$
724,739
(30
)%
Net income per common share, basic
3.48
4.99
(30
)%
Net income per common share, diluted
3.46
4.95
(30
)
Cash dividends declared per common share
1.52
1.36
12
Return on average assets
0.90
%
1.32
%
(42)
bps
Return on average common equity
12.17
17.41
(524
)
Weighted average common shares outstanding, basic
146,115
145,364
1
%
Weighted average common shares outstanding, diluted
146,734
146,481
—
nm - not meaningful
bps - basis points
Synovus
INCOME STATEMENT DATA
(Unaudited)
(Dollars in thousands, except per share data)
2023
2022
Fourth Quarter
Fourth Quarter
Third Quarter
Second Quarter
First Quarter
Fourth Quarter
23 vs '22
% Change
Interest income
$
788,297
786,039
759,143
716,879
654,654
20
%
Interest expense
351,083
342,880
303,612
236,128
153,308
129
Net interest income
437,214
443,159
455,531
480,751
501,346
(13
)
Provision for (reversal of) credit losses
45,472
72,572
38,881
32,154
34,884
30
Net interest income after provision for credit losses
391,742
370,587
416,650
448,597
466,462
(16
)
Non-interest revenue:
Service charges on deposit accounts
22,260
21,385
23,477
22,974
23,639
(6
)
Fiduciary and asset management fees
18,149
20,205
20,027
19,696
18,836
(4
)
Card fees
20,872
18,602
17,059
15,824
15,887
31
Brokerage revenue
19,727
20,237
20,908
22,558
19,996
(1
)
Mortgage banking income
3,019
3,671
4,609
3,858
2,554
18
Capital markets income
5,104
6,377
6,975
13,725
6,998
(27
)
Income from bank-owned life insurance
10,324
6,965
6,878
7,262
7,206
43
Investment securities gains (losses), net
(77,748
)
—
—
1,030
—
nm
Recovery of NPA
—
—
—
13,126
—
nm
Other non-interest revenue
29,761
9,697
12,343
13,073
7,323
306
Total non-interest revenue
51,468
107,139
112,276
133,126
102,439
(50
)
Non-interest expense:
Salaries and other personnel expense
176,712
179,741
183,001
188,924
182,629
(3
)
Net occupancy, equipment, and software expense
48,146
45,790
42,785
42,860
45,192
7
Third-party processing and other services
21,717
21,439
21,659
21,833
23,130
(6
)
Professional fees
11,147
10,147
9,597
8,963
11,096
—
FDIC insurance and other regulatory fees
61,470
11,837
11,162
10,268
8,232
647
Restructuring charges (reversals)
1,231
17,319
(110
)
(733
)
(2,372
)
(152
)
Loss on other loans held for sale
—
30,954
2,360
16,750
—
nm
Other operating expenses
32,435
36,305
36,727
32,987
41,089
(21
)
Total non-interest expense
352,858
353,532
307,181
321,852
308,996
14
Income before income taxes
90,352
124,194
221,745
259,871
259,905
(65
)
Income tax expense
20,779
27,729
47,801
57,712
54,135
(62
)
Net income
69,573
96,465
173,944
202,159
205,770
(66
)
Less: Net income (loss) attributable to noncontrolling
(768
)
(630
)
(166
)
—
—
nm
Net income attributable to Synovus Financial Corp.
70,341
97,095
174,110
202,159
205,770
(66
)
Less: Preferred stock dividends
9,696
9,672
8,291
8,291
8,291
17
Net income available to common shareholders
$
60,645
87,423
165,819
193,868
197,479
(69
)
Net income per common share, basic
$
0.41
0.60
1.13
1.33
1.36
(69
)%
Net income per common share, diluted
0.41
0.60
1.13
1.32
1.35
(69
)
Cash dividends declared per common share
0.38
0.38
0.38
0.38
0.34
12
Return on average assets *
0.47
%
0.64
1.15
1.36
1.38
(91)
bps
Return on average common equity *
5.88
8.21
15.45
19.23
20.93
nm
Weighted average common shares outstanding, basic
146,372
146,170
146,113
145,799
145,467
1
%
Weighted average common shares outstanding, diluted
146,877
146,740
146,550
146,727
146,528
—
nm - not meaningful
bps - basis points
* - ratios are annualized
Synovus
BALANCE SHEET DATA
December 31, 2023
September 30, 2023
December 31, 2022
(Unaudited)
(In thousands, except share data)
ASSETS
Cash and due from banks
$
601,188
$
604,631
$
624,097
Interest-bearing funds with Federal Reserve Bank
1,741,059
1,431,356
1,280,684
Interest earning deposits with banks
71,856
65,468
34,632
Federal funds sold and securities purchased under resale agreements
37,323
36,176
38,367
Cash and cash equivalents
2,451,426
2,137,631
1,977,780
Investment securities available for sale, at fair value
9,788,662
9,237,191
9,678,103
Loans held for sale ($47,338, $48,994 and $51,136 measured at fair value,
respectively)
52,768
66,558
391,502
Loans, net of deferred fees and costs
43,404,490
43,679,910
43,716,353
Allowance for loan losses
(479,385
)
(477,532
)
(443,424
)
Loans, net
42,925,105
43,202,378
43,272,929
Cash surrender value of bank-owned life insurance
1,112,030
1,107,092
1,089,280
Premises, equipment, and software, net
365,851
364,054
370,632
Goodwill
480,440
479,851
452,390
Other intangible assets, net
45,928
49,096
27,124
Other assets
2,587,324
2,699,079
2,471,638
Total assets
$
59,809,534
$
59,342,930
$
59,731,378
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest-bearing deposits
$
12,507,616
$
12,976,574
$
15,639,899
Interest-bearing deposits
38,231,569
37,227,316
33,231,660
Total deposits
50,739,185
50,203,890
48,871,559
Federal funds purchased and securities sold under repurchase agreements
189,074
98,270
146,588
Other short-term borrowings
3,496
2,362
603,384
Long-term debt
1,932,534
2,704,701
4,109,597
Other liabilities
1,801,097
1,772,139
1,524,449
Total liabilities
54,665,386
54,781,362
55,255,577
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 171,360,188, 170,859,506, and 170,141,492 respectively; outstanding 146,705,330, 146,204,648, and 145,486,634 respectively
171,360
170,860
170,141
Additional paid-in capital
3,955,819
3,940,507
3,920,346
Treasury stock, at cost – 24,654,858 shares
(944,484
)
(944,484
)
(944,484
)
Accumulated other comprehensive income (loss), net
(1,117,073
)
(1,679,404
)
(1,442,117
)
Retained earnings
2,517,226
2,512,334
2,234,770
Total Synovus Financial Corp. shareholders' equity
5,119,993
4,536,958
4,475,801
Noncontrolling interest in subsidiary
24,155
24,610
—
Total equity
5,144,148
4,561,568
4,475,801
Total liabilities and shareholders' equity
$
59,809,534
$
59,342,930
$
59,731,378
Synovus
AVERAGE BALANCES, INTEREST, AND YIELDS/RATES
(Unaudited)
2023
2022
(dollars in thousands)
Average Balance
Interest
Yield/ Rate
Average Balance
Interest
Yield/ Rate
Assets
Interest earning assets:
Commercial loans (1) (2) (3)
$
35,188,678
$
2,263,117
6.43
%
$
32,402,218
$
1,448,463
4.47
%
Consumer loans (1) (2)
8,557,650
426,266
4.98
8,823,424
361,524
4.10
Less: Allowance for loan losses
(463,493
)
(421,506
)
—
—
Loans, net
43,282,835
2,689,383
6.21
40,804,136
1,809,987
4.44
Investment securities available for sale
11,212,956
248,294
2.21
11,208,886
209,951
1.87
Trading account assets
15,486
886
5.72
13,374
261
1.95
Other earning assets(4)
1,414,586
71,349
4.98
1,220,653
18,756
1.52
FHLB and Federal Reserve Bank stock
254,420
14,975
5.89
214,289
6,722
3.14
Mortgage loans held for sale
46,035
2,993
6.50
75,325
3,353
4.45
Other loans held for sale
469,689
27,099
5.69
682,961
30,684
4.43
Total interest earning assets
56,696,007
$
3,054,979
5.39
%
54,219,624
$
2,079,714
3.84
%
Cash and due from banks
575,370
574,250
Premises and equipment
367,159
385,622
Other real estate
—
6,356
Cash surrender value of bank-owned life insurance
1,099,641
1,078,653
Other assets(5)
1,183,691
1,345,568
Total assets
$
59,921,868
$
57,610,073
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits
$
9,884,039
$
176,595
1.79
%
$
9,027,636
$
25,912
0.29
%
Money market accounts
13,511,442
356,562
2.64
15,385,765
79,567
0.52
Savings deposits
1,229,975
1,046
0.09
1,481,372
399
0.03
Time deposits
5,473,405
196,481
3.59
2,667,101
13,902
0.52
Brokered deposits
6,104,461
296,071
4.85
3,644,957
67,452
1.85
Federal funds purchased and securities sold under repurchase agreements
97,114
1,667
1.69
205,753
1,308
0.63
Other short-term borrowings
528,194
24,611
4.60
466,254
10,945
2.32
Long-term debt
3,027,746
180,670
5.92
1,999,595
79,402
3.95
Total interest-bearing liabilities
39,856,376
$
1,233,703
3.10
%
34,878,433
$
278,887
0.80
%
Non-interest-bearing demand deposits
13,662,660
16,731,967
Other liabilities
1,671,489
1,298,972
Shareholders' equity
4,731,343
4,700,701
Total liabilities and shareholders' equity
$
59,921,868
$
57,610,073
Net interest income, taxable equivalent net interest margin (6)
$
1,821,276
3.21
%
$
1,800,827
3.32
%
Less: taxable-equivalent adjustment
4,621
3,927
Net interest income
$
1,816,655
$
1,796,900
(1)
Average loans are shown net of deferred fees and costs. NPLs are included.
(2)Interest income includes net loan fees as follows: 2023 — $47.7 million and 2022 — $57.3 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 $(1.62) billion and $(985.6) million for the years ended December 31, 2023 and 2022, respectively.
(6)The net interest margin is calculated by dividing net interest income-taxable equivalent by average total interest earning assets.
Synovus
AVERAGE BALANCES, INTEREST, AND YIELDS/RATES
(Unaudited)
Fourth Quarter 2023
Third Quarter 2023
Fourth Quarter 2022
(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)
$
35,106,156
$
590,588
6.67
%
$
34,990,459
$
579,177
6.57
%
$
34,103,384
$
474,439
5.52
%
Consumer loans (1) (2)
8,491,244
109,509
5.14
8,509,757
108,065
5.06
9,041,520
101,905
4.50
Less: Allowance for loan losses
(480,332
)
(461,385
)
(427,525
)
Loans, net
43,117,068
700,097
6.45
43,038,831
687,242
6.34
42,717,379
576,344
5.36
Investment securities available for sale
11,164,487
65,176
2.33
11,194,291
61,642
2.20
11,296,449
58,840
2.08
Trading account assets
13,067
215
6.59
16,186
237
5.86
15,552
68
1.75
Other earning assets(4)
1,463,176
19,689
5.26
1,237,445
16,369
5.17
1,148,099
10,490
3.58
FHLB and Federal Reserve Bank stock
187,015
3,536
7.56
244,906
3,783
6.18
270,822
2,805
4.14
Mortgage loans held for sale
39,024
696
7.14
53,904
879
6.52
46,240
688
5.95
Other loans held for sale
8,044
104
5.06
881,067
17,035
7.57
514,811
6,550
4.98
Total interest earning assets
55,991,881
$
789,513
5.59
%
56,666,630
$
787,187
5.51
%
56,009,352
$
655,785
4.65
%
Cash and due from banks
522,986
509,511
651,189
Premises and equipment
366,647
365,568
375,352
Other real estate
—
—
—
Cash surrender value of bank-owned life insurance
1,108,766
1,102,626
1,085,394
Other assets(5)
1,173,785
1,272,344
842,130
Total assets
$
59,164,065
$
59,916,679
$
58,963,417
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits
$
10,422,286
$
58,588
2.23
%
$
10,114,171
$
52,983
2.08
%
$
8,627,386
$
14,160
0.65
%
Money market accounts
13,053,781
103,211
3.14
13,147,465
95,339
2.88
14,771,308
46,671
1.25
Savings deposits
1,098,914
275
0.10
1,178,322
280
0.09
1,450,153
176
0.05
Time deposits
7,198,229
75,462
4.16
6,180,584
59,972
3.85
2,567,979
7,648
1.18
Brokered deposits
6,069,055
81,444
5.32
6,442,690
83,486
5.14
4,986,542
39,500
3.14
Federal funds purchased and securities sold under repurchase agreements
93,854
350
1.46
73,344
296
1.58
141,707
437
1.21
Other short-term borrowings
2,672
51
7.50
1,722
—
—
660,295
6,383
3.78
Long-term debt
1,922,661
31,702
6.55
3,230,374
50,524
6.18
3,446,306
38,333
4.39
Total interest-bearing liabilities
39,861,452
$
351,083
3.49
%
40,368,672
$
342,880
3.37
%
36,651,676
$
153,308
1.66
%
Non-interest-bearing demand deposits
12,744,275
13,049,343
16,569,275
Other liabilities
1,906,686
1,713,131
1,462,394
Shareholders' equity
4,651,652
4,785,533
4,280,072
Total liabilities and shareholders' equity
$
59,164,065
$
59,916,679
$
58,963,417
Net interest income, taxable equivalent net interest margin (6)
$
438,430
3.11
%
$
444,307
3.11
%
$
502,477
3.56
%
Less: taxable-equivalent adjustment
1,216
1,148
1,131
Net interest income
$
437,214
$
443,159
$
501,346
(1)
Average loans are shown net of deferred fees and costs. NPLs are included.
(2)Interest income includes net loan fees as follows: Fourth Quarter 2023 — $13.1 million, Third Quarter 2023 — $11.8 million, and Fourth Quarter 2022 —$11.9 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 $(1.89) billion, $(1.60) billion, and $(1.69) billion for the Fourth Quarter 2023, Third Quarter 2023, and Fourth Quarter 2022, 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
December 31, 2023
September 30, 2023
% Change
December 31, 2022
% Change
Commercial, Financial, and Agricultural
$
14,459,345
$
14,498,966
—
%
$
13,874,416
4
%
Owner-Occupied
8,139,148
8,281,988
(2
)
8,192,240
(1
)
Total Commercial & Industrial
22,598,493
22,780,954
(1
)
22,066,656
2
Multi-Family
4,098,188
3,930,617
4
3,134,571
31
Hotels
1,803,102
1,790,094
1
1,708,194
6
Office Buildings
1,891,587
1,911,095
(1
)
3,011,911
(37
)
Shopping Centers
1,319,049
1,327,770
(1
)
1,403,928
(6
)
Warehouses
854,475
985,723
(13
)
1,035,152
(17
)
Other Investment Property
1,396,903
1,432,456
(2
)
1,350,291
3
Total Investment Properties
11,363,304
11,377,755
—
11,644,047
(2
)
1-4 Family Construction
194,481
224,091
(13
)
229,263
(15
)
1-4 Family Investment Mortgage
404,021
396,813
2
387,670
4
Total 1-4 Family Properties
598,502
620,904
(4
)
616,933
(3
)
Commercial Development
73,022
64,212
14
79,889
(9
)
Residential Development
79,961
92,209
(13
)
108,661
(26
)
Land Acquisition
201,969
239,773
(16
)
200,783
1
Land and Development
354,952
396,194
(10
)
389,333
(9
)
Total Commercial Real Estate
12,316,758
12,394,853
(1
)
12,650,313
(3
)
Consumer Mortgages
5,411,723
5,391,282
—
5,214,443
4
Home Equity Lines
1,807,399
1,784,356
1
1,757,038
3
Credit Cards
194,141
191,046
2
203,612
(5
)
Other Consumer Loans
1,075,976
1,137,419
(5
)
1,824,291
(41
)
Total Consumer
8,489,239
8,504,103
—
8,999,384
(6
)
Total
$
43,404,490
$
43,679,910
(1
)
$
43,716,353
(1
)
NON-PERFORMING LOANS COMPOSITION
(Unaudited)
(Dollars in thousands)
Total
Non-performing Loans
Total
Non-performing Loans
Linked Quarter
Total
Non-performing Loans
Year/Year
Loan Type
December 31, 2023
September 30, 2023
% Change
December 31, 2022
% Change
Commercial, Financial, and Agricultural
$
89,870
$
97,468
(8
)
$
59,307
52
%
Owner-Occupied
91,370
84,505
8
10,104
nm
Total Commercial & Industrial
181,240
181,973
—
69,411
161
Multi-Family
1,681
1,702
(1
)
1,857
(9
)
Office Buildings
35,338
27,810
27
309
nm
Shopping Centers
641
653
(2
)
735
(13
)
Warehouses
196
207
(5
)
223
(12
)
Other Investment Property
1,914
572
235
349
448
Total Investment Properties
39,770
30,944
29
3,473
nm
1-4 Family Construction
—
—
nm
55
(100
)
1-4 Family Investment Mortgage
3,056
3,386
(10
)
3,067
—
Total 1-4 Family Properties
3,056
3,386
(10
)
3,122
(2
)
Commercial Development
—
—
nm
—
nm
Residential Development
267
267
—
267
—
Land Acquisition
537
538
—
891
(40
)
Land and Development
804
805
—
1,158
(31
)
Total Commercial Real Estate
43,630
35,135
24
7,753
463
Consumer Mortgages
46,108
43,863
5
36,847
25
Home Equity Lines
10,473
11,620
(10
)
6,830
53
Other Consumer Loans
6,726
7,941
(15
)
7,220
(7
)
Total Consumer
63,307
63,424
—
50,897
24
Total
$
288,177
$
280,532
3
%
$
128,061
125
%
Synovus
CREDIT QUALITY DATA
(Unaudited)
(Dollars in thousands)
2023
2022
Fourth
Quarter
Fourth
Third
Second
First
Fourth
23 vs '22
Quarter
Quarter
Quarter
Quarter
Quarter
% Change
Non-performing Loans (NPL)
$
288,177
280,532
261,506
182,460
128,061
125
%
Other Real Estate and Other Assets
—
—
—
—
15,320
(100
)
Non-performing Assets (NPAs)
288,177
280,532
261,506
182,460
143,381
101
Allowance for Loan Losses (ALL)
479,385
477,532
471,238
457,010
443,424
8
Reserve for Unfunded Commitments
57,230
55,185
55,729
57,473
57,455
—
Allowance for Credit Losses (ACL)
536,615
532,717
526,967
514,483
500,879
7
Net Charge-Offs - Quarter
41,574
66,822
26,396
18,550
13,300
Net Charge-Offs - YTD
153,342
111,768
44,946
18,550
53,156
Net Charge-Offs / Average Loans - Quarter (1)
0.38
%
0.61
0.24
0.17
0.12
Net Charge-Offs / Average Loans - YTD (1)
0.35
0.34
0.20
0.17
0.13
NPLs / Loans
0.66
0.64
0.59
0.41
0.29
NPAs / Loans, ORE and specific other assets
0.66
0.64
0.59
0.41
0.33
ACL/Loans
1.24
1.22
1.19
1.17
1.15
ALL/Loans
1.10
1.09
1.06
1.04
1.01
ACL/NPLs
186.21
189.90
201.51
281.97
391.13
ALL/NPLs
166.35
170.22
180.20
250.47
346.26
Past Due Loans over 90 days and Still Accruing
$
5,053
3,792
3,643
3,529
3,373
50
As a Percentage of Loans Outstanding
0.01
%
0.01
0.01
0.01
0.01
Total Past Due Loans and Still Accruing
$
59,099
54,974
84,946
55,053
65,568
(10
)
As a Percentage of Loans Outstanding
0.14
%
0.13
0.19
0.12
0.15
(1) Ratio is annualized.
SELECTED CAPITAL INFORMATION (1)
(Unaudited)
(Dollars in thousands)
December 31, 2023
September 30, 2023
December 31, 2022
Common Equity Tier 1 Capital Ratio
10.22
%
10.13
9.63
Tier 1 Capital Ratio
11.28
11.18
10.68
Total Risk-Based Capital Ratio
13.07
13.12
12.54
Tier 1 Leverage Ratio
9.49
9.38
9.07
Total Synovus Financial Corp. shareholders’ equity as a Percentage of Total Assets
8.56
7.65
7.49
Tangible Common Equity Ratio(2)(4)
6.84
5.90
5.84
Book Value Per Common Share(3)
$
31.24
27.36
27.07
Tangible Book Value Per Common Share(2)
27.65
23.74
23.78
(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/20240117039916/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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