Le Lézard
Classified in: Business
Subjects: EARNINGS, Conference Call, Webcast

Synovus Announces Earnings for the First Quarter 2019


Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended March 31, 2019.

First Quarter 2019 Highlights

                       

First Quarter Summary

 
Reported Adjusted
(dollars in thousands) 1Q19     4Q18     1Q18 1Q19     4Q18     1Q18
Net Income available to common shareholders $ 117,036 $ 101,919 $ 100,607 $ 160,155 $ 107,002 $ 102,020
Diluted earnings per share 0.72 0.87 0.84 0.98 0.91 0.86
Total loans 35,634,501 25,946,573 24,883,037 N/A N/A N/A
Total deposits 38,075,190 26,720,322 26,253,507 N/A N/A N/A
Total revenues 476,478 365,924 341,330 476,250 368,189 344,502
Return on avg assets 1.06 % 1.29 % 1.34 % 1.45 % 1.36 % 1.36 %
Return on avg common equity 10.98 14.25 14.62 15.03 14.96 14.82
Return on avg tangible common equity 12.88 14.63 15.02 17.52 15.36 15.23
Net interest margin 3.78 3.92 3.78 3.59 N/A N/A
Efficiency ratio 61.29 57.34 57.16 50.24 55.98 57.42
Net charge-off ratio 0.19 0.20 0.07 N/A N/A N/A
NPA ratio 0.44 0.44 0.53 N/A N/A N/A
 

"We are pleased with our first quarter results, with solid gains in earnings per share, balanced growth in loans and deposits, and strong contributions from our newly acquired FCB franchise," said Kessel D. Stelling, Synovus chairman and CEO. "We continued to demonstrate prudent expense discipline while investing in a number of strategically important initiatives, including transforming our digital capabilities, improving the customer experience, and recruiting and investing in high-performing talent. We also continued our capital optimization program by executing $320 million in share repurchases.

"As the May 6 FCB conversion date approaches, we are very pleased with the crisp execution of the FCB integration, including seamless alignment of our teams into an efficient and synergistic operating model, successful retention of key customers and team members, and realization of merger-related cost savings ahead of plan," Stelling concluded.

Balance Sheet

Core Performance

Credit Quality

Capital

1  

Organic loan and deposit growth excludes FCB-acquired balances of $9.29 billion and $10.93 billion, respectively.

2

Includes interest-bearing and non-interest-bearing DDAs.

3

Core banking fees include service charges on deposit accounts, card fees, letter of credit fees, ATM fee income, line of credit non-usage fees, gains from sales of government guaranteed loans, and miscellaneous other service charges.

First Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on April 23, 2019. 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 $47 billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services through 300 branches in Georgia, Alabama, South Carolina, Florida, and Tennessee. Synovus Bank, a wholly owned subsidiary of Synovus, was named one of American Banker's "Best Banks to Work For" in 2018 and has been recognized as one of the country's 10 "Most Reputable Banks" by American Banker and the Reputation Institute for four consecutive years. 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 deposit growth, loan growth and the net interest margin; expectations on our growth strategy, strategic transactions (including the FCB transaction), expense initiatives, capital management and future profitability; expectations on credit trends and key credit metrics; 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, 2018, 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 income; adjusted non-interest expense; adjusted total revenues; adjusted tangible efficiency ratio; adjusted net income available to common shareholders; adjusted earnings per diluted share; adjusted return on average assets; adjusted return on average common equity; return on average tangible common equity; adjusted return on average tangible common equity; tangible common equity to tangible assets ratio; and common equity Tier 1 (CET1) ratio (fully phased-in) 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 income; total non-interest expense; total revenues; efficiency ratio; net income available to common shareholders; earnings per diluted common share; return on average assets; return on average common equity; the ratio of total shareholders' equity to total assets; and the CET1 ratio, respectively.

Management believes that these non-GAAP financial measures provide meaningful additional information about Synovus to assist management and investors in evaluating Synovus' operating results, financial strength, the performance of its business, and the strength of its capital position. However, these non-GAAP financial measures have inherent limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of operating results or capital position as reported under GAAP. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant items and other factors, and since they are not required to be uniformly applied, they may not be comparable to other similarly titled measures at other companies. Adjusted total revenues and adjusted non-interest income are measures used by management to evaluate total revenues and non-interest income exclusive of net investment securities gains (losses) and changes in the fair value of private equity investments, net. Adjusted non-interest expense and the adjusted tangible efficiency ratio are measures utilized by management to measure the success of expense management initiatives focused on reducing recurring controllable operating costs. Adjusted net income available to common shareholders, adjusted earnings per diluted share, adjusted return on average assets, and adjusted return on average common equity are measures used by management to evaluate operating results exclusive of items that are not indicative of ongoing operations and impact period-to-period comparisons. Return on average tangible common equity and adjusted return on average tangible common equity are measures used by management to compare Synovus' performance with other financial institutions because it calculates the return available to common shareholders without the impact of intangible assets and their related amortization, thereby allowing management to evaluate the performance of the business consistently. The tangible common equity to tangible assets ratio and common equity Tier 1 (CET1) ratio (fully phased-in) are used by management and bank regulators 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) 1Q19 4Q18 1Q18
Adjusted non-interest income
Total non-interest income $ 79,378 $ 67,991 $ 67,046
Subtract: Investment securities gains, net (75 ) ? ?
Subtract/add: (Increase) decrease in fair value of private equity investments, net (858 ) 2,084   3,056  
Adjusted non-interest income $ 78,445   $ 70,075   $ 70,102  
 
Adjusted non-interest expense
Total non-interest expense $ 292,410 $ 209,922 $ 195,179
Subtract: Merger-related expense (49,738 ) (3,381 ) ?
Add: Litigation settlement/contingency expense ? ? 2,626
Subtract/add: Restructuring charges, net (19 ) (140 ) 315  
Adjusted non-interest expense $ 242,653   $ 206,401   $ 198,120  
 
Adjusted total revenues and adjusted tangible efficiency ratio
Adjusted non-interest expense $ 242,653 $ 206,401 $ 198,120
Subtract: Amortization of intangibles (3,392 ) (292 ) (292 )
Adjusted tangible non-interest expense $ 239,261   $ 206,109   $ 197,828  
 
Net interest income $ 397,175 $ 297,933 $ 274,284
Add: Tax equivalent adjustment 630 181 116
Add: Total non-interest income 79,378 67,991 67,046
Subtract: Investment securities gains, net (75 ) ?   ?  
Total FTE revenues 477,108 366,105 341,446
Subtract/add: (Increase) decrease in fair value of private equity investments, net (858 ) 2,084   3,056  
Adjusted total revenues $ 476,250   $ 368,189   $ 344,502  
Efficiency ratio 61.29 % 57.34 % 57.16 %
Adjusted tangible efficiency ratio 50.24   55.98   57.42  
 
           
Reconciliation of Non-GAAP Financial Measures, continued
     
(in thousands, except per share data) 1Q19 4Q18 1Q18
Adjusted Return on Average Assets
Net income $ 120,186 $ 105,070 $ 103,166
Add: Income tax expense, net related to State Tax Reform ? ? 1,325
Add: Merger-related expense 49,738 3,381 ?
Subtract: Litigation settlement/contingency expense ? ? (2,626 )
Add/subtract: Restructuring charges, net 19 140 (315 )
Subtract: Investment securities gains, net (75 ) ? ?
Subtract/add: (Increase) decrease in fair value of private equity investments, net (858 ) 2,084 3,056
Subtract: Tax effect of adjustments (5,705 ) (522 ) (27 )
Adjusted net income $ 163,305 $ 110,153 $ 104,579
Net income annualized $ 487,421 $ 416,854 $ 418,395
Adjusted net income annualized $ 662,293 $ 437,020 $ 424,126
Total average assets $ 45,794,621 $ 32,190,303 $ 31,245,708
Return on average assets 1.06 % 1.29 % 1.34 %
Adjusted return on average assets 1.45   1.36   1.36  
 

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

Net income available to common shareholders $ 117,036 $ 101,919 $ 100,607
Add: Income tax expense, net related to State Tax Reform ? ? 1,325
Add: Merger-related expense 49,738 3,381 ?
Subtract: Litigation settlement/contingency expense ? ? (2,626 )
Add/subtract: Restructuring charges, net 19 140 (315 )
Subtract: Investment securities gains, net (75 ) ? ?
Subtract/add: (Increase) decrease in fair value of private equity investments, net (858 ) 2,084 3,056
Subtract: Tax effect of adjustments (5,705 ) (522 ) (27 )
Adjusted net income available to common shareholders $ 160,155 $ 107,002 $ 102,020
Weighted average common shares outstanding, diluted 162,760 116,986 119,321
Net income per common share, diluted $ 0.72 $ 0.87 $ 0.84
Adjusted net income per common share, diluted 0.98   0.91   0.86  
 
       
Reconciliation of Non-GAAP Financial Measures, continued    
(dollars in thousands) 1Q19     4Q18 1Q18
 

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 $ 117,036 $ 101,919 $ 100,607
Add: Income tax expense, net related to State Tax Reform ? ? 1,325
Add: Merger-related expense 49,738 3,381 ?
Subtract: Litigation settlement/contingency expense ? ? (2,626 )
Add/subtract: Restructuring charges, net 19 140 (315 )
Subtract: Investment securities gains, net (75 ) ? ?
Subtract/add: (Increase) decrease in fair value of private equity investments, net (858 ) 2,084 3,056
Subtract: Tax effect of adjustments (5,705 ) (522 ) (27 )
Adjusted net income available to common shareholders $ 160,155 $ 107,002 $ 102,020
 
Adjusted net income available to common shareholders annualized $ 649,518 $ 424,519 $ 413,747
Add: Amortization of intangibles 10,317   886   906  
Adjusted net income available to common shareholders excluding amortization of intangibles annualized $ 659,835 $ 425,405 $ 414,653
 
Net income available to common shareholders annualized $ 474,646 $ 404,353 $ 408,017
Add: Amortization of intangibles 10,317   886   906  
Net income available to common shareholders excluding amortization of intangibles annualized $ 484,963 $ 405,239 $ 408,923
 
Total average shareholders' equity less preferred stock $ 4,321,561 $ 2,837,740 $ 2,790,878
Subtract: Goodwill (480,215 ) (57,315 ) (57,315 )
Subtract: Other intangible assets, net (75,191 ) (9,972 ) (10,915 )
Total average tangible shareholders' equity less preferred stock $ 3,766,155 $ 2,770,453 $ 2,722,648
Return on average common equity 10.98 % 14.25 % 14.62 %
Adjusted return on average common equity 15.03 14.96 14.82
Return on average tangible common equity 12.88 14.63 15.02
Adjusted return on average tangible common equity 17.52   15.36   15.23  
 
           
Reconciliation of Non-GAAP Financial Measures, continued
March 31, December 31, March 31,
(dollars in thousands) 2019 2018 2018
Tangible Common Equity to Tangible Assets Ratio
 
Total assets $ 46,604,344 $ 32,669,192 $ 31,501,028
Subtract: Goodwill (480,215 ) (57,315 ) (57,315 )
Subtract: Other intangible assets, net (74,683 ) (9,875 ) (10,750 )
Tangible assets $ 46,049,446   $ 32,602,002   $ 31,432,963  
 
Total shareholders' equity $ 4,572,072 $ 3,133,602 $ 2,956,495
Subtract: Goodwill (480,215 ) (57,315 ) (57,315 )
Subtract: Other intangible assets, net (74,683 ) (9,875 ) (10,750 )
Subtract: Preferred Stock, no par value (195,140 )   (195,140 ) (125,980 )
Tangible common equity $ 3,822,034   $ 2,871,272   $ 2,762,450  
Total shareholders' equity to total assets ratio 9.81 % 9.59 % 9.39 %
Tangible common equity to tangible assets ratio 8.30   8.81   8.79  
 
   
Reconciliation of Non-GAAP Financial Measures, continued  
March 31,
(dollars in thousands) 2019
CET1 ratio (fully phased-in)
CET1 $ 3,772,682
Total risk-weighted assets $ 39,954,750
Total risk-weighted assets (fully phased-in) $ 40,095,768
CET1 ratio 9.44 %
CET1 ratio (fully phased-in) 9.41  
 
                       
Synovus
 
INCOME STATEMENT DATA
(Unaudited)
(In thousands, except per share data) 2019 2018 First Quarter
                       
First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter '19 vs '18
            % Change
 
Interest income $ 504,839 357,394 343,942 329,834 313,134 61.2 %
Interest expense 107,664   59,461   52,323   45,257   38,850   177.1  
 
 
Net interest income 397,175 297,933 291,619 284,577 274,284 44.8
Provision for loan losses 23,569   12,148   14,982   11,790   12,776   84.5  
 
Net interest income after provision for loan losses 373,606   285,785   276,637   272,787   261,508   42.9  
 
 
Non-interest income:
Service charges on deposit accounts 20,859 20,320 20,582 19,999 19,940 4.6
Fiduciary and asset management fees 13,578 13,805 13,462 13,983 13,435 1.1
Card fees 10,877 10,862 10,608 10,833 10,199 6.6
Brokerage revenue 9,406 9,643 9,329 8,900 8,695 8.2
Mortgage banking income 5,054 3,781 5,290 4,839 5,047 0.1
Income from bank-owned life insurance 5,290 3,682 3,771 3,733 4,217 25.4
Swap fee income 4,778 1,128 516 1,003 690 nm
Investment securities gains/(losses), net 75 ? ? (1,296 ) ? nm
Increase/(decrease) in fair value of private equity investments, net 858 (2,084 ) 434 (37 ) (3,056 ) nm
Other non-interest income 8,603   6,854   7,676   11,430   7,879   9.2  
 
Total non-interest income 79,378   67,991   71,668   73,387   67,046   18.4  
 
 
 
Non-interest expense:
Salaries and other personnel expense 139,427 113,496 114,341 111,863 113,720 22.6
Net occupancy and equipment expense 38,394 34,260 32,088 32,654 31,480 22.0
Third-party processing expense 17,758 14,803 14,810 15,067 13,945 27.3
FDIC insurance and other regulatory fees 6,761 4,728 6,430 6,543 6,793 (0.5 )
Professional fees 6,348 8,650 6,298 6,284 5,505 15.3
Advertising expense 5,123 6,834 3,735 5,220 5,092 0.6
Earnout liability adjustments ? ? 11,652 ? ? nm
Merger-related expense 49,738 3,381 6,684 ? ? nm
Amortization of intangibles 3,392 292 292 292 292 nm
Other operating expenses 25,469   23,478   23,967   26,134   18,352   38.8  
 
Total non-interest expense 292,410   209,922   220,297   204,057   195,179   49.8  
 
 
 
Income before income taxes 160,574 143,854 128,008 142,117 133,375 20.4
Income tax expense 40,388   38,784   18,949   30,936   30,209   33.7  
 
Net income 120,186 105,070 109,059 111,181 103,166 16.5
 
Less: Preferred stock dividends and redemption charge 3,150   3,151   9,729   2,559   2,559   23.1  
 
Net income available to common shareholders $ 117,036   101,919   99,330   108,622   100,607   16.3  
 
Net income per common share, basic $ 0.73 0.88 0.85 0.92 0.85 (14.2 )%
 
Net income per common share, diluted 0.72 0.87 0.84 0.91 0.84 (14.7 )
 
Cash dividends declared per common share 0.30 0.25 0.25 0.25 0.25 20.0
 
Return on average assets * 1.06 % 1.29 1.36 1.42 1.34 (28) bps
Return on average common equity * 10.98 14.25 13.95 15.39 14.62 (364 )
 
Weighted average common shares outstanding, basic 160,927 116,303 117,241 118,397 118,666 35.6 %
Weighted average common shares outstanding, diluted 162,760 116,986 118,095 119,139 119,321 36.4
 
nm - not meaningful
bps - basis points
* - ratios are annualized
 
           
Synovus
       
 
BALANCE SHEET DATA March 31, 2019 December 31, 2018 March 31, 2018
     
(Unaudited)
 
(In thousands, except share data)
 
ASSETS
Cash and due from banks $ 519,681 468,426 348,027
Interest-bearing funds with Federal Reserve Bank 688,470 641,476 636,947
Interest earning deposits with banks 24,147 19,841 16,851
Federal funds sold and securities purchased under resale agreements 33,627   13,821   57,192  
Cash and cash equivalents 1,265,925 1,143,564 1,059,017
 
Mortgage loans held for sale, at fair value 55,970 37,129 50,439
Investment securities available for sale, at fair value 6,808,191 3,991,632 3,990,978
 
Loans 35,634,501 25,946,573 24,883,037
Allowance for loan losses (257,036 ) (250,555 ) (257,764 )
Loans, net 35,377,465   25,696,018   24,625,273  
 
Cash surrender value of bank-owned life insurance 761,098 554,134 543,684
Premises and equipment, net 479,965 434,307 424,342
Goodwill 480,215 57,315 57,315
Other intangible assets 74,683 9,875 10,750
Other assets 1,300,832   745,218   739,230  
Total assets $ 46,604,344   32,669,192   31,501,028  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest-bearing deposits $ 9,144,315 7,650,967 7,381,070
Interest-bearing deposits 28,930,875   19,069,355   18,872,437  
 
Total deposits 38,075,190 26,720,322 26,253,507
 
Federal funds purchased and securities sold under repurchase agreements 314,383 237,692 185,531
Other short-term borrowings 853,000 650,000 ?
Long-term debt 2,106,037 1,657,157 1,856,392
Other liabilities 683,662   270,419   249,103  
Total liabilities 42,032,272   29,535,590   28,544,533  
 
Shareholders' equity:
Series C Preferred Stock - no par value; 5,200,000 outstanding at March 31, 2018 ? ? 125,980

Series D Preferred Stock - no par value. Authorized 100,000,000 shares;
8,000,000 shares issued and outstanding at March 31, 2019 and December 31, 2018

195,140 195,140 ?

Common stock - $1.00 par value. Authorized 342,857,143 shares; 165,929,349
issued at March 31, 2019, 143,300,449 issued at December 31, 2018, and
143,017,301 issued at March 31, 2018; 157,454,007 outstanding at March 31,
2019, 115,865,510 outstanding at December 31, 2018, and 118,702,497
outstanding at March 31, 2018

165,929 143,300 143,017
Additional paid-in capital 3,782,847 3,060,561 3,039,757

Treasury stock, at cost ? 8,475,342 shares at March 31, 2019, 27,434,939 shares
at December 31, 2018, and 24,314,804 shares at March 31, 2018

(319,898 ) (1,014,746 ) (866,407 )
Accumulated other comprehensive loss, net (18,342 ) (94,420 ) (107,777 )
Retained earnings 766,396   843,767   621,925  
Total shareholders' equity 4,572,072   3,133,602   2,956,495  
Total liabilities and shareholders' equity $ 46,604,344   32,669,192   31,501,028  
 
 
Synovus
                   

AVERAGE BALANCES AND YIELDS/RATES (1)

(Unaudited)
(Dollars in thousands)
2019 2018
First Fourth Third Second First
Quarter Quarter     Quarter     Quarter     Quarter
Interest Earning Assets
Taxable investment securities (2) $ 6,515,561 4,073,685 4,061,239 4,077,564 4,097,162
Yield 3.05 % 2.45 2.38 2.34 2.34
Tax-exempt investment securities(2)(4) $ 20,638 ? 89 115 140
Yield (taxable equivalent) 4.45 % ? 5.91 6.87 6.57
Trading account assets(5) $ 2,049 7,493 16,646 23,772 8,167
Yield 1.30 % 1.90 2.52 2.79 2.66
Commercial loans(3)(4) $ 26,140,672 19,150,252 19,025,830 18,857,271 18,963,515
Yield 5.16 % 5.13 4.98 4.85 4.64
Consumer loans(3) $ 9,180,679 6,476,026 6,298,643 6,092,899 5,899,015
Yield 5.10 % 4.85 4.80 4.76 4.71
Allowance for loan losses $ (252,815 )     (251,098 )     (251,684 )     (257,966 )     (251,635 )
Loans, net(3) $ 35,068,536 25,375,180 25,072,789 24,692,204 24,610,895
Yield 5.17 % 5.11 4.99 4.88 4.70
Mortgage loans held for sale $ 34,913 36,477 49,030 50,366 38,360
Yield 4.48 % 4.79 4.71 4.42 3.95
Federal funds sold, due from Federal Reserve Bank, and other short-term investments $ 679,477 641,832 544,704 724,537 516,575
Yield 2.45 % 2.20 1.90 1.77 1.48
Federal Home Loan Bank and Federal Reserve Bank Stock(5) $ 211,408 162,369 163,568 165,845 177,381
Yield     4.82 %     4.31       4.41       4.63       3.39  
Total interest earning assets $ 42,532,582 30,297,036 29,908,065 29,734,403 29,448,680
Yield     4.80 %     4.69       4.58       4.47       4.31  
Interest-Bearing Liabilities
Interest-bearing demand deposits $ 6,393,304 4,692,804 4,701,204 5,001,826 5,032,000
Rate 0.68 % 0.41 0.38 0.35 0.31
Money Market accounts $ 10,244,556 8,050,732 7,936,621 7,791,107 7,561,554
Rate 1.18 % 0.89 0.72 0.55 0.43
Savings deposits $ 901,059 815,588 824,935 829,800 811,587
Rate 0.06 % 0.04 0.03 0.03 0.03
Time deposits under $100,000 $ 2,238,568 1,242,811 1,205,987 1,161,890 1,143,780
Rate 1.24 % 1.16 0.99 0.82 0.71
Time deposits over $100,000 $ 6,211,067 2,478,649 2,273,582 2,021,084 1,895,545
Rate 1.60 % 1.67 1.46 1.22 1.02
Non-maturing brokered deposits $ 937,629 349,480 358,277 262,976 424,118
Rate 2.60 % 2.46 2.10 1.94 1.14
Brokered time deposits $ 1,845,819 1,275,276 1,414,700 1,659,941 1,527,793
Rate 2.13 %     2.03       1.94       1.85       1.75  
Total interest-bearing deposits $ 28,772,002 18,905,340 18,715,306 18,728,624 18,396,377
Rate 1.24 % 0.96 0.83 0.70 0.58
Federal funds purchased and securities sold under repurchase agreements $ 233,076 194,370 230,504 207,655 202,226
Rate 0.22 % 0.18 0.25 0.35 0.21
Other short-term borrowings $ 517,456 112,228 146,794 3,024 394,056
Rate 2.58 % 2.51 2.12 2.84 1.52
Long-term debt $ 1,983,910 1,657,022 1,656,743 1,852,094 1,733,938
Rate     3.33 %     3.06       2.87       2.66       2.51  
Total interest-bearing liabilities $ 31,506,444 20,868,960 20,749,347 20,791,397 20,726,597
Rate     1.38 %     1.12       0.99       0.87       0.76  
Non-interest-bearing demand deposits $ 9,054,949 8,014,761 7,672,006 7,539,451 7,391,695
Cost of funds     1.07 %     0.81       0.73       0.64       0.56  
Net interest margin     3.78 %     3.92       3.89       3.86       3.78  
Taxable equivalent adjustment $ 630 181 136 120 116
 

(1)

 

Yields and rates are annualized.

(2)

Excludes net unrealized gains and losses.

(3)

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

(4)

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

(5)

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

 
Synovus                            
LOANS OUTSTANDING BY TYPE
(Unaudited)
(Dollars in thousands)                  
Total Loans Total Originated Loans Total Acquired Loans (1) Total Loans Linked Quarter Total Loans Year/Year
Loan Type

March 31, 2019

March 31, 2019 March 31, 2019 December 31, 2018 % Change March 31, 2018 % Change
Commercial, Financial, and Agricultural $ 9,547,816 7,661,252 1,886,564 7,449,698 28.2 % $ 7,191,531 32.8 %
Owner-Occupied 6,560,681   5,375,678   1,185,003   5,331,508   23.1   4,910,386   33.6  
Total Commercial & Industrial 16,108,497 13,036,930 3,071,567 12,781,206 26.0 12,101,917 33.1
 
Multi-Family 2,077,666 1,242,076 835,590 1,208,033 72.0 1,479,573 40.4
Hotels 1,179,395 704,057 475,338 704,319 67.5 751,232 57.0
Office Buildings 2,211,901 1,498,491 713,410 1,451,048 52.4 1,464,473 51.0
Shopping Centers 1,654,531 870,231 784,300 808,540 104.6 782,580 111.4
Warehouses 771,007 585,699 185,308 627,353 22.9 583,645 32.1
Other Investment Property 1,022,280   820,391   201,889   761,658   34.2   557,547   83.4  
Total Investment Properties 8,916,780 5,720,945 3,195,835 5,560,951 60.3 5,619,050 58.7
 
1-4 Family Construction 215,881 172,631 43,250 174,259 23.9 188,939 14.3
1-4 Family Investment Mortgage 549,120   485,168   63,952   505,611   8.6   569,965  

(3.7

)

Total 1-4 Family Properties 765,001 657,799 107,202 679,870 12.5 758,904 0.8
 
Commercial Development 149,944 70,576 79,368 60,675 147.1 65,371 129.4
Residential Development 211,501 116,942 94,559 93,166 127.0 104,137 103.1
Land Acquisition 219,146   155,669   63,477   169,829   29.0   288,265   (24.0 )
Land and Development 580,591   343,187   237,404   323,670   79.4   457,773   26.8  
 
Total Commercial Real Estate 10,262,372   6,721,931   3,540,441   6,564,491   56.3   6,835,727   50.1  
 
Consumer Mortgages 5,390,821 3,044,207 2,346,614 2,934,235 83.7 2,663,371 102.4
Home Equity Lines 1,606,227 1,540,726 65,501 1,515,796 6.0 1,472,471 9.1
Credit Cards 252,762 252,762 ? 258,245 (2.1 ) 226,713 11.5
Other Consumer Loans 2,037,477   2,023,693   13,784   1,916,743   6.3   1,606,799   26.8  
Total Consumer 9,287,287   6,861,388   2,425,899   6,625,019   40.2   5,969,354   55.6  
 
Unearned Income (23,655 ) (23,655 ) ?   (24,143 ) (2.0 ) (23,961 ) (1.3 )
 
Total $ 35,634,501   26,596,594   9,037,907   25,946,573   37.3 % $ 24,883,037   43.2 %
 

(1) Represents $9.29 billion (at fair value) of loans acquired from FCB, net of payments since acquisition date

                                               
 
NON-PERFORMING LOANS COMPOSITION
(Unaudited)
(Dollars in thousands) Total

Non-performing Loans

Total Originated Non-performing Loans Total Acquired Non-performing Loans(1) (2) Total

Non-performing Loans

Linked Quarter Total

Non-performing Loans

Year/Year
 
 
 
Loan Type March 31, 2019 March 31, 2019 March 31, 2019 December 31, 2018 % Change   March 31, 2018 % Change
 
Commercial, Financial, and Agricultural $ 85,917 79,305 6,612 69,295 24.0 % $ 81,606 5.3 %
Owner-Occupied 13,813   11,239   2,574   8,971   54.0   4,067   239.6  
Total Commercial & Industrial 99,730 90,544 9,186 78,266 27.4 85,673 16.4
 
Multi-Family 1,503 ? 1,503 237 534.2 1,028 46.2
Hotels 7,346 ? 7,346 ? nm ? nm
Office Buildings 221 112 109 165 33.9 1,272 (82.6 )
Shopping Centers 676 614 62 89 659.6 89 659.6
Warehouses ? ? ? ? - ? -
Other Investment Property ?   ?   ?   1,890   nm   541   nm  
Total Investment Properties 9,746 726 9,020 2,381 309.3 2,930 232.6
 
1-4 Family Construction 445 445 ? ? nm ? nm
1-4 Family Investment Mortgage 1,522   1,277   245   2,381   (36.1 ) 2,634   (42.2 )
Total 1-4 Family Properties 1,967 1,722 245 2,381 (17.4 ) 2,634 (25.3 )
 
Commercial Development 46 46 ? 93 (50.5 ) 44 4.5
Residential Development 1,569 1,569 ? 1,444 8.7 3,219 (51.3 )
Land Acquisition 1,035   1,035   ?   1,416   (26.9 ) 1,311   (21.1 )
Land and Development 2,650   2,650   ?   2,953   (10.3 ) 4,574   (42.1 )
 
Total Commercial Real Estate 14,363   5,098   9,265   7,715   86.2   10,138   41.7  
 
Consumer Mortgages 11,556 6,856 4,700 4,949 133.5 7,708 49.9
Home Equity Lines 14,078 13,756 322 12,114 16.2 14,868 (5.3 )
Other Consumer Loans 4,249   4,249   ?   3,689   15.2   1,694   150.8  
Total Consumer 29,883   24,861     5,022   20,752   44.0   24,270   23.1  

 

Total $ 143,976   120,503   23,473   106,733   34.9 % $ 120,081   19.9 %
 

(1) Represents loans acquired from FCB and designated as non-accrual, net of payments since acquisition date

(2) For purposes of this table, March 31, 2019 non-performing loans exclude acquired loans accounted for under ASC 310-30 that are currently accruing income.

 
Synovus                      
 
CREDIT QUALITY DATA
(Unaudited)
(Dollars in thousands) 2019 2018 First Quarter
                       
First Fourth Third Second First '19 vs '18
Quarter Quarter     Quarter     Quarter     Quarter % Change
 
Non-performing Loans (1) 143,976 106,733 108,425 117,328 120,081 19.9 %
Impaired Loans Held for Sale (2) 12 1,506 12 2,733 6,591 (99.8 )%
Other Real Estate 11,329   6,220   8,542   6,288   4,496   152.0  
 
Non-performing Assets (1) 155,317 114,459 116,979 126,349 131,168 18.4
 
Allowance for loan losses 257,036 250,555 241,450 251,725 257,764 (0.3 )
 
Net Charge-Offs - Quarter 17,088 13,044 15,257 17,829 4,280
Net Charge-Offs / Average Loans - Quarter (3) 0.19 % 0.20 0.24 0.29 0.07
 
Non-performing Loans / Loans (1) 0.40 0.41 0.42 0.47 0.48
Non-performing Assets / Loans, Impaired Loans Held for Sale, & ORE (1) 0.44 0.44 0.46 0.50 0.53
Allowance / Loans 0.72 0.97 0.98 1.00 1.04
 
Allowance / Non-performing Loans (1) 178.53 234.75 231.91 214.55 214.66
Allowance / Non-performing Loans excluding loans for which the expected loss has been charged off

(1)

230.29 297.68 288.21 262.99 241.49
 
Past Due Loans over 90 days and Still Accruing (1) $ 4,486 3,798 4,856 3,222 5,416 (17.2 )
As a Percentage of Loans Outstanding 0.01 % 0.01 0.02 0.01 0.02
 
Total Past Due Loans and Still Accruing (1) $ 88,135 56,927 78,323 55,614 54,150 62.8
As a Percentage of Loans Outstanding 0.25 % 0.22 0.31 0.22 0.22
 
Accruing Troubled Debt Restructurings (TDRs) $ 112,205 115,588 114,740 125,310 129,394 (13.3 )
 
 

(1) For purposes of this table, March 31, 2019 non-performing loans and past due loans over 90 days exclude acquired loans accounted for under ASC 310-30 that are currently accruing income.

(2) Represent impaired loans that have been specifically identified to be sold. Impaired loans held for sale are carried at the lower of cost or fair value, less costs to sell, based primarily on estimated sales proceeds net of selling costs.

(3) Ratio is annualized.

 
                                     
 
 
SELECTED CAPITAL INFORMATION (1)
(Unaudited)
(Dollars in thousands)      
March 31, 2019 December 31, 2018 March 31, 2018
 
 
Tier 1 Capital $ 3,967,822 3,090,416 2,924,109
Total Risk-Based Capital 4,785,928 3,601,376 3,442,921
Common Equity Tier 1 Ratio (transitional) 9.44 % 9.95 10.13
Common Equity Tier 1 Ratio (fully phased-in) (5) 9.41 9.92 10.03
Tier 1 Capital Ratio 9.93 10.61 10.53
Total Risk-Based Capital Ratio 11.98 12.37 12.39
Tier 1 Leverage Ratio 8.77 9.60 9.37
Common Equity as a Percentage of Total Assets (2) 9.39 8.99 8.98
Tangible Common Equity as a Percentage of Tangible Assets (3) (5) 8.30 8.81 8.79
Book Value Per Common Share (4) $ 27.80 25.36 23.85
Tangible Book Value Per Common Share (3) 24.27 24.78 23.27
 
 

(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.


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