COLUMBUS, Ga.--(BUSINESS WIRE)--Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended Sept. 30, 2023. “Our third quarter financial results reflect agility and disciplined execution amid complex market dynamics,” said Synovus Chairman, CEO and President Kevin Blair. “While we navigate through this uncertain economic landscape, our primary focus remains on strengthening and growing our core client relationships and strategically positioning Synovus for future growth. This includes efforts to optimize the balance sheet as well as business mix. Our proactive measures taken in the third quarter have further derisked the company by reducing our wholesale funding ratio to 15% and elevating the CET1 ratio beyond 10%, while also streamlining ongoing expenses. We are confidently looking forward to a strong close for 2023, and we are optimistic about the return to a stronger growth orientation as we progress through 2024.”
Third Quarter 2023 Highlights
- Completed the previously announced sales of $338 million of third-party consumer loans and $1.2 billion of medical office building loans as well as the sale of asset management firm GLOBALT to its management team.
- Total revenue of $550.3 million declined $31.9 million, or 5%, compared to the third quarter 2022, driven by net interest income decrease of 7%, partially offset by growth in client fee income, excluding mortgage, of 5% year over year.
- Pre-provision net revenue of $196.8 million declined $91.4 million, or 32%, compared to the third quarter 2022, mostly driven by increases in funding costs, losses on the aforementioned loan sales and restructuring charges related to a voluntary early retirement program.
- Period-end loans declined $673.6 million sequentially, primarily driven by the $1.2 billion medical office building loans sale.
- Total deposits increased $123.5 million sequentially, while core deposits (excluding brokered deposits) grew $431.5 million, as remixing began to slow.
- As expected, credit quality metrics continued to increase from historically low levels and included a net charge-off ratio of 0.61% (driven by the previously disclosed medical office loan sale and a shared national C&I credit), a 3 bps increase in the ACL ratio to 1.22%, and non-performing loan and asset ratios both at 0.64%.
- The preliminary CET1 ratio of 10.13% increased 27 bps sequentially as capital preservation remains the near-term priority given persistent economic uncertainty.
Third Quarter Summary
|
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Reported |
|
Adjusted |
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(dollars in thousands) |
|
3Q23 |
|
|
|
2Q23 |
|
|
|
3Q22 |
|
|
|
3Q23 |
|
|
|
2Q23 |
|
|
|
3Q22 |
|
Net income available to common shareholders |
$ |
87,423 |
|
|
$ |
165,819 |
|
|
$ |
194,753 |
|
|
$ |
122,770 |
|
|
$ |
169,526 |
|
|
$ |
195,481 |
|
Diluted earnings per share |
|
0.60 |
|
|
|
1.13 |
|
|
|
1.33 |
|
|
|
0.84 |
|
|
|
1.16 |
|
|
|
1.34 |
|
Total revenue |
|
550,298 |
|
|
|
567,807 |
|
|
|
582,217 |
|
|
|
550,552 |
|
|
|
567,347 |
|
|
|
584,265 |
|
Total loans |
|
43,679,910 |
|
|
|
44,353,537 |
|
|
|
42,571,458 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
Total deposits |
|
50,203,890 |
|
|
|
50,080,392 |
|
|
|
47,697,564 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
Return on avg assets |
|
0.64 |
% |
|
|
1.15 |
% |
|
|
1.39 |
% |
|
|
0.87 |
% |
|
|
1.18 |
% |
|
|
1.39 |
% |
Return on avg common equity |
|
8.2 |
|
|
|
15.5 |
|
|
|
18.7 |
|
|
|
11.5 |
|
|
|
15.8 |
|
|
|
18.7 |
|
Return on avg tangible common equity |
|
9.7 |
|
|
|
17.7 |
|
|
|
21.3 |
|
|
|
13.5 |
|
|
|
18.1 |
|
|
|
21.4 |
|
Net interest margin |
|
3.11 |
|
|
|
3.20 |
|
|
|
3.47 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
Efficiency ratio-TE(1)(2) |
|
64.11 |
|
|
|
53.99 |
|
|
|
50.41 |
|
|
|
55.01 |
|
|
|
52.57 |
|
|
|
49.98 |
|
NCO ratio-QTD |
|
0.61 |
|
|
|
0.24 |
|
|
|
0.04 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
NPA ratio |
|
0.64 |
|
|
|
0.59 |
|
|
|
0.32 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
(1) Taxable equivalent (2) Adjusted tangible efficiency ratio |
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Balance Sheet
Loans* |
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
(dollars in millions) |
3Q23 |
|
2Q23 |
|
Linked
|
|
Linked
|
|
3Q22 |
|
Year/Year
|
|
Year/Year %
|
|||||||||
Commercial & industrial |
$ |
22,781.0 |
|
$ |
22,531.2 |
|
$ |
249.7 |
|
|
1 |
% |
|
$ |
21,212.5 |
|
$ |
1,568.4 |
|
|
7 |
% |
Commercial real estate |
|
12,394.9 |
|
|
13,293.9 |
|
|
(899.0 |
) |
|
(7 |
) |
|
|
12,288.0 |
|
|
106.9 |
|
|
1 |
|
Consumer |
|
8,504.1 |
|
|
8,528.4 |
|
|
(24.3 |
) |
|
— |
|
|
|
9,071.0 |
|
|
(566.9 |
) |
|
(6 |
) |
Total loans |
$ |
43,679.9 |
|
$ |
44,353.5 |
|
$ |
(673.6 |
) |
|
(2 |
)% |
|
$ |
42,571.5 |
|
$ |
1,108.4 |
|
|
3 |
% |
*Amounts may not total due to rounding |
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- Total loans ended the quarter at $43.68 billion, down $673.6 million sequentially, primarily driven by the $1.2 billion medical office building loans sale.
- Commercial and industrial (C&I) loans rose $249.7 million sequentially as activity in middle market commercial, Corporate and Investment Banking, and specialty lines contributed to the growth.
- CRE loans declined $899.0 million sequentially, driven by the aforementioned medical office building loans sale partially offset by draws on existing multi-family commitments and continued low levels of pay-offs.
- Consumer loans declined $24.3 million sequentially, largely a result of continued third-party contraction from sales as well as runoff somewhat offset by growth in portfolio mortgages.
Deposits* |
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
(dollars in millions) |
3Q23 |
|
2Q23 |
|
Linked
|
|
Linked
|
|
3Q22 |
|
Year/Year
|
|
Year/Year
|
|||||||||
Non-interest-bearing DDA |
$ |
12,395.1 |
|
$ |
12,945.5 |
|
$ |
(550.4 |
) |
|
(4 |
)% |
|
$ |
15,373.7 |
|
$ |
(2,978.6 |
) |
|
(19 |
)% |
Interest-bearing DDA |
|
6,276.1 |
|
|
6,255.3 |
|
|
20.8 |
|
|
— |
|
|
|
5,777.7 |
|
|
498.4 |
|
|
9 |
|
Money market |
|
10,786.3 |
|
|
10,803.7 |
|
|
(17.4 |
) |
|
— |
|
|
|
12,917.6 |
|
|
(2,131.3 |
) |
|
(16 |
) |
Savings |
|
1,132.5 |
|
|
1,222.9 |
|
|
(90.4 |
) |
|
(7 |
) |
|
|
1,470.1 |
|
|
(337.6 |
) |
|
(23 |
) |
Public funds |
|
6,885.7 |
|
|
7,031.4 |
|
|
(145.7 |
) |
|
(2 |
) |
|
|
5,549.7 |
|
|
1,336.0 |
|
|
24 |
|
Time deposits |
|
6,506.4 |
|
|
5,291.8 |
|
|
1,214.6 |
|
|
23 |
|
|
|
2,110.9 |
|
|
4,395.5 |
|
|
208 |
|
Brokered deposits |
|
6,221.8 |
|
|
6,529.8 |
|
|
(308.0 |
) |
|
(5 |
) |
|
|
4,497.8 |
|
|
1,724.0 |
|
|
38 |
|
Total deposits |
$ |
50,203.9 |
|
$ |
50,080.4 |
|
$ |
123.5 |
|
|
— |
% |
|
$ |
47,697.6 |
|
$ |
2,506.3 |
|
|
5 |
% |
*Amounts may not total due to rounding |
||||||||||||||||||||||
-
Total deposits ended the quarter at $50.20 billion, up $123.5 million sequentially, while core deposits (excluding brokered deposits) grew $431.5 million.
- Time deposits growth was partially offset by a decline in non-interest-bearing DDA deposits, a byproduct of cash deployment of excess funds and continued pressures from the higher rate environment, the rate of which has slowed.
- Total deposit costs increased 36 bps sequentially to 2.31% and continued to be impacted by pricing lags on core interest-bearing deposits (excluding brokered deposits) as well as the decline in non-interest-bearing DDAs.
Income Statement Summary** |
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(in thousands, except per share data) |
3Q23 |
|
2Q23 |
|
Linked
|
|
Linked
|
|
3Q22 |
|
Year/Year
|
|
Year/Year
|
||||||||||||
Net interest income |
$ |
443,159 |
|
|
$ |
455,531 |
|
|
$ |
(12,372 |
) |
|
(3 |
)% |
|
$ |
477,919 |
|
|
$ |
(34,760 |
) |
|
(7 |
)% |
Non-interest revenue |
|
107,139 |
|
|
|
112,276 |
|
|
|
(5,137 |
) |
|
(5 |
) |
|
|
104,298 |
|
|
|
2,841 |
|
|
3 |
|
Non-interest expense |
|
353,532 |
|
|
|
307,181 |
|
|
|
46,351 |
|
|
15 |
|
|
|
294,010 |
|
|
|
59,522 |
|
|
20 |
|
Provision for (reversal of) credit losses |
|
72,572 |
|
|
|
38,881 |
|
|
|
33,691 |
|
|
87 |
|
|
|
25,581 |
|
|
|
46,991 |
|
|
184 |
|
Income before taxes |
$ |
124,194 |
|
|
$ |
221,745 |
|
|
$ |
(97,551 |
) |
|
(44 |
)% |
|
$ |
262,626 |
|
|
$ |
(138,432 |
) |
|
(53 |
)% |
Income tax expense |
|
27,729 |
|
|
|
47,801 |
|
|
|
(20,072 |
) |
|
(42 |
) |
|
|
59,582 |
|
|
|
(31,853 |
) |
|
(53 |
) |
Net income |
|
96,465 |
|
|
|
173,944 |
|
|
|
(77,479 |
) |
|
(45 |
) |
|
|
203,044 |
|
|
|
(106,579 |
) |
|
(52 |
) |
Less: Net income (loss) attributable to noncontrolling interest |
|
(630 |
) |
|
|
(166 |
) |
|
|
(464 |
) |
|
NM |
|
|
|
— |
|
|
|
(630 |
) |
|
NM |
|
Net income attributable to Synovus Financial Corp. |
|
97,095 |
|
|
|
174,110 |
|
|
|
(77,015 |
) |
|
(44 |
) |
|
|
203,044 |
|
|
|
(105,949 |
) |
|
(52 |
) |
Less: Preferred stock dividends |
|
9,672 |
|
|
|
8,291 |
|
|
|
1,381 |
|
|
17 |
|
|
|
8,291 |
|
|
|
1,381 |
|
|
17 |
|
Net income available to common shareholders |
$ |
87,423 |
|
|
$ |
165,819 |
|
|
$ |
(78,396 |
) |
|
(47 |
)% |
|
$ |
194,753 |
|
|
$ |
(107,330 |
) |
|
(55 |
)% |
Weighted average common shares outstanding, diluted |
|
146,740 |
|
|
|
146,550 |
|
|
|
190 |
|
|
— |
% |
|
|
146,418 |
|
|
|
322 |
|
|
— |
% |
Diluted earnings per share |
$ |
0.60 |
|
|
$ |
1.13 |
|
|
$ |
(0.53 |
) |
|
(47 |
) |
|
$ |
1.33 |
|
|
$ |
(0.73 |
) |
|
(55 |
) |
Adjusted diluted earnings per share |
|
0.84 |
|
|
|
1.16 |
|
|
|
(0.32 |
) |
|
(28 |
) |
|
|
1.34 |
|
|
|
(0.50 |
) |
|
(37 |
) |
Effective tax rate |
|
22.33 |
% |
|
|
21.56 |
% |
|
|
|
|
|
|
22.69 |
% |
|
|
|
|
||||||
** Amounts may not total due to rounding |
|||||||||||||||||||||||||
Core Performance
-
Net interest income of $443.2 million was down $12.4 million sequentially, or 3%, and fell $34.8 million, or 7%, compared to the third quarter 2022.
-
The quarter-over-quarter decline was largely driven by modest increases in deposit costs and a continued decline in non-interest-bearing DDA deposits, but at a slower pace, partially offset by modestly better asset yields.
- Net interest margin was 3.11%, down 9 bps sequentially, impacted by the same factors mentioned above.
- The year-over-year decline resulted primarily from higher deposit costs and negative remixing from non-interest DDA deposits somewhat offset by higher asset yields.
-
The quarter-over-quarter decline was largely driven by modest increases in deposit costs and a continued decline in non-interest-bearing DDA deposits, but at a slower pace, partially offset by modestly better asset yields.
-
Non-interest revenue fell $5.1 million, or 5%, sequentially and increased $2.8 million, or 3%, compared to the third quarter 2022. Adjusted non-interest revenue declined $4.4 million, or 4%, sequentially and increased $0.9 million, or 1%, compared to the third quarter 2022.
- The quarter-over-quarter decrease was impacted by recent changes to the NSF/overdraft program, a soft mortgage lending market and more muted capital markets activity.
- The year-over-year increase primarily related to higher wealth revenue and increased card fees.
-
Non-interest expense increased $46.4 million, or 15%, sequentially and increased $59.5 million, or 20%, compared to the third quarter 2022. Adjusted non-interest expense increased $5.2 million, or 2%, sequentially and increased $11.8 million, or 4%, compared to the third quarter 2022.
- The quarter-over-quarter and year-over-year increases were largely impacted by a $31.0 million loss from loan sales and $18.4 million in voluntary early retirement charges. The year-over-year increase was also affected by new business initiatives and infrastructure investments as well as higher FDIC insurance and healthcare costs.
- As expected, credit quality metrics continued to increase from historically low levels. The non-performing loan and asset ratios both moved to 0.64%; the net charge-off ratio for the quarter was 0.61%, largely driven by the medical office building loan sale and a shared national C&I credit, while total past dues were 0.13% of total loans outstanding.
-
Provision for credit losses of $72.6 million increased $33.7 million sequentially and rose $47.0 million compared to the third quarter 2022.
- Drivers of the quarter-over-quarter and year-over-year increases included higher net charge-offs and increases of 3 bps and 9 bps, respectively, in the allowance for credit losses coverage ratio (to loans), reflecting migration trends and the uncertain economic environment.
Capital Ratios |
|
|||||||
|
|
|
|
|
|
|||
|
3Q23 |
|
|
2Q23 |
|
|
3Q22 |
|
Common equity Tier 1 capital (CET1) ratio |
10.13 |
% |
* |
9.86 |
% |
|
9.52 |
% |
Tier 1 capital ratio |
11.18 |
|
* |
10.89 |
|
|
10.59 |
|
Total risk-based capital ratio |
13.12 |
|
* |
12.80 |
|
|
12.45 |
|
Tier 1 leverage ratio |
9.38 |
|
* |
9.23 |
|
|
9.04 |
|
Tangible common equity ratio |
5.90 |
|
|
6.17 |
|
|
5.52 |
|
* Ratios are preliminary. |
||||||||
Capital
- The preliminary CET1 ratio improved 27 bps during the quarter to 10.13%, and the preliminary total risk-based capital ratio of 13.12% increased 32 bps from the previous quarter as capital preservation remains the near-term priority given persistent economic uncertainty.
Third Quarter Earnings Conference Call
Synovus will host an earnings highlights conference call at 8:30 a.m. ET on October 19, 2023. 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 $59 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 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, 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 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 |
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|
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(dollars in thousands) |
|
3Q23 |
|
|
|
2Q23 |
|
|
|
3Q22 |
|
|
|
|
|
|
|
||||||
Adjusted non-interest revenue |
|
|
|
|
|
||||||
Total non-interest revenue |
$ |
107,139 |
|
|
$ |
112,276 |
|
|
$ |
104,298 |
|
Gain on sale of GLOBALT |
|
(1,929 |
) |
|
|
— |
|
|
|
— |
|
Fair value adjustment on non-qualified deferred compensation |
|
1,035 |
|
|
|
(1,598 |
) |
|
|
1,076 |
|
Adjusted non-interest revenue |
$ |
106,245 |
|
|
$ |
110,678 |
|
|
$ |
105,374 |
|
|
|
|
|
|
|
||||||
Adjusted non-interest expense |
|
|
|
|
|
||||||
Total non-interest expense |
$ |
353,532 |
|
|
$ |
307,181 |
|
|
$ |
294,010 |
|
(Loss) gain on other loans held for sale |
|
(30,954 |
) |
|
|
(2,360 |
) |
|
|
— |
|
Gain (loss) on early extinguishment of debt |
|
526 |
|
|
|
377 |
|
|
|
— |
|
Restructuring (charges) reversals |
|
(17,319 |
) |
|
|
110 |
|
|
|
(956 |
) |
Valuation adjustment to Visa derivative |
|
(900 |
) |
|
|
(3,027 |
) |
|
|
— |
|
Fair value adjustment on non-qualified deferred compensation |
|
1,035 |
|
|
|
(1,598 |
) |
|
|
1,076 |
|
Adjusted non-interest expense |
$ |
305,920 |
|
|
$ |
300,683 |
|
|
$ |
294,130 |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Reconciliation of Non-GAAP Financial Measures, continued |
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
(dollars in thousands) |
|
3Q23 |
|
|
|
2Q23 |
|
|
|
3Q22 |
|
Adjusted revenue and tangible efficiency ratio |
|
|
|
|
|
||||||
Adjusted non-interest expense |
$ |
305,920 |
|
|
$ |
300,683 |
|
|
$ |
294,130 |
|
Amortization of intangibles |
|
(3,042 |
) |
|
|
(2,420 |
) |
|
|
(2,118 |
) |
Adjusted tangible non-interest expense |
$ |
302,878 |
|
|
$ |
298,263 |
|
|
$ |
292,012 |
|
|
|
|
|
|
|
||||||
Net interest income |
$ |
443,159 |
|
|
$ |
455,531 |
|
|
$ |
477,919 |
|
Total non-interest revenue |
|
107,139 |
|
|
|
112,276 |
|
|
|
104,298 |
|
Total revenue |
$ |
550,298 |
|
|
$ |
567,807 |
|
|
$ |
582,217 |
|
Tax equivalent adjustment |
|
1,148 |
|
|
|
1,138 |
|
|
|
972 |
|
Total TE revenue |
|
551,446 |
|
|
|
568,945 |
|
|
|
583,189 |
|
Gain on sale of GLOBALT |
|
(1,929 |
) |
|
|
— |
|
|
|
— |
|
Fair value adjustment on non-qualified deferred compensation |
|
1,035 |
|
|
|
(1,598 |
) |
|
|
1,076 |
|
Adjusted revenue |
$ |
550,552 |
|
|
$ |
567,347 |
|
|
$ |
584,265 |
|
Efficiency ratio-TE |
|
64.11 |
% |
|
|
53.99 |
% |
|
|
50.41 |
% |
Adjusted tangible efficiency ratio |
|
55.01 |
|
|
|
52.57 |
|
|
|
49.98 |
|
|
|
|
|
|
|
||||||
Adjusted return on average assets |
|
|
|
|
|
||||||
Net income |
$ |
96,465 |
|
|
$ |
173,944 |
|
|
$ |
203,044 |
|
Loss (gain) on other loans held for sale |
|
30,954 |
|
|
|
2,360 |
|
|
|
— |
|
(Gain) loss on early extinguishment of debt |
|
(526 |
) |
|
|
(377 |
) |
|
|
— |
|
Gain on sale of GLOBALT |
|
(1,929 |
) |
|
|
— |
|
|
|
— |
|
Restructuring charges (reversals) |
|
17,319 |
|
|
|
(110 |
) |
|
|
956 |
|
Valuation adjustment to Visa derivative |
|
900 |
|
|
|
3,027 |
|
|
|
— |
|
Tax effect of adjustments(1) |
|
(11,371 |
) |
|
|
(1,193 |
) |
|
|
(228 |
) |
Adjusted net income |
$ |
131,812 |
|
|
$ |
177,651 |
|
|
$ |
203,772 |
|
Net income annualized |
$ |
382,714 |
|
|
$ |
697,687 |
|
|
$ |
805,555 |
|
Adjusted net income annualized |
$ |
522,950 |
|
|
$ |
712,556 |
|
|
$ |
808,443 |
|
Total average assets |
$ |
59,916,679 |
|
|
$ |
60,515,077 |
|
|
$ |
58,055,978 |
|
Return on average assets |
|
0.64 |
% |
|
|
1.15 |
% |
|
|
1.39 |
% |
Adjusted return on average assets |
|
0.87 |
|
|
|
1.18 |
|
|
|
1.39 |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Adjusted net income available to common shareholders and adjusted diluted earnings per share |
|
|
|
|
|
||||||
Net income available to common shareholders |
$ |
87,423 |
|
|
$ |
165,819 |
|
|
$ |
194,753 |
|
Gain on sale of GLOBALT |
|
(1,929 |
) |
|
|
— |
|
|
|
— |
|
Loss (gain) on other loans held for sale |
|
30,954 |
|
|
|
2,360 |
|
|
|
— |
|
(Gain) loss on early extinguishment of debt |
|
(526 |
) |
|
|
(377 |
) |
|
|
— |
|
Restructuring charges (reversals) |
|
17,319 |
|
|
|
(110 |
) |
|
|
956 |
|
Valuation adjustment to Visa derivative |
|
900 |
|
|
|
3,027 |
|
|
|
— |
|
Tax effect of adjustments(1) |
|
(11,371 |
) |
|
|
(1,193 |
) |
|
|
(228 |
) |
Adjusted net income available to common shareholders |
$ |
122,770 |
|
|
$ |
169,526 |
|
|
$ |
195,481 |
|
Weighted average common shares outstanding, diluted |
|
146,740 |
|
|
|
146,550 |
|
|
|
146,418 |
|
Diluted earnings per share |
$ |
0.60 |
|
|
$ |
1.13 |
|
|
$ |
1.33 |
|
Adjusted diluted earnings per share |
|
0.84 |
|
|
|
1.16 |
|
|
|
1.34 |
|
Reconciliation of Non-GAAP Financial Measures, continued |
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
(dollars in thousands) |
|
3Q23 |
|
|
|
2Q23 |
|
|
|
3Q22 |
|
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 |
$ |
87,423 |
|
|
$ |
165,819 |
|
|
$ |
194,753 |
|
Loss (gain) on other loans held for sale |
|
30,954 |
|
|
|
2,360 |
|
|
|
— |
|
(Gain) loss on early extinguishment of debt |
|
(526 |
) |
|
|
(377 |
) |
|
|
— |
|
Gain on sale of GLOBALT |
|
(1,929 |
) |
|
|
— |
|
|
|
— |
|
Restructuring charges (reversals) |
|
17,319 |
|
|
|
(110 |
) |
|
|
956 |
|
Valuation adjustment to Visa derivative |
|
900 |
|
|
|
3,027 |
|
|
|
— |
|
Tax effect of adjustments(1) |
|
(11,371 |
) |
|
|
(1,193 |
) |
|
|
(228 |
) |
Adjusted net income available to common shareholders |
$ |
122,770 |
|
|
$ |
169,526 |
|
|
$ |
195,481 |
|
|
|
|
|
|
|
||||||
Adjusted net income available to common shareholders annualized |
$ |
487,077 |
|
|
$ |
679,967 |
|
|
$ |
775,550 |
|
Amortization of intangibles, tax effected, annualized |
|
9,131 |
|
|
|
7,344 |
|
|
|
6,401 |
|
Adjusted net income available to common shareholders excluding amortization of intangibles annualized |
$ |
496,208 |
|
|
$ |
687,311 |
|
|
$ |
781,951 |
|
|
|
|
|
|
|
||||||
Net income available to common shareholders annualized |
$ |
346,841 |
|
|
$ |
665,098 |
|
|
$ |
772,661 |
|
Amortization of intangibles, tax effected, annualized |
|
9,131 |
|
|
|
7,344 |
|
|
|
6,401 |
|
Net income available to common shareholders excluding amortization of intangibles annualized |
$ |
355,972 |
|
|
$ |
672,442 |
|
|
$ |
779,062 |
|
|
|
|
|
|
|
||||||
Total average Synovus Financial Corp. shareholders' equity less preferred stock |
$ |
4,223,422 |
|
|
$ |
4,303,722 |
|
|
$ |
4,141,516 |
|
Average goodwill |
|
(476,408 |
) |
|
|
(460,118 |
) |
|
|
(452,390 |
) |
Average other intangible assets, net |
|
(59,016 |
) |
|
|
(36,738 |
) |
|
|
(30,214 |
) |
Total average Synovus Financial Corp. tangible shareholders' equity less preferred stock |
$ |
3,687,998 |
|
|
$ |
3,806,866 |
|
|
$ |
3,658,912 |
|
Return on average common equity |
|
8.2 |
% |
|
|
15.5 |
% |
|
|
18.7 |
% |
Adjusted return on average common equity |
|
11.5 |
|
|
|
15.8 |
|
|
|
18.7 |
|
Return on average tangible common equity |
|
9.7 |
|
|
|
17.7 |
|
|
|
21.3 |
|
Adjusted return on average tangible common equity |
|
13.5 |
|
|
|
18.1 |
|
|
|
21.4 |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
(dollars in thousands) |
September 30, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
||||||
|
|
|
|
|
|
||||||
Tangible common equity ratio |
|
|
|
|
|
||||||
Total assets |
$ |
59,342,930 |
|
|
$ |
59,731,378 |
|
|
$ |
58,639,522 |
|
Goodwill |
|
(479,851 |
) |
|
|
(452,390 |
) |
|
|
(452,390 |
) |
Other intangible assets, net |
|
(49,096 |
) |
|
|
(27,124 |
) |
|
|
(29,242 |
) |
Tangible assets |
$ |
58,813,983 |
|
|
$ |
59,251,864 |
|
|
$ |
58,157,890 |
|
|
|
|
|
|
|
||||||
Total Synovus Financial Corp. shareholders’ equity |
$ |
4,536,958 |
|
|
$ |
4,475,801 |
|
|
$ |
4,229,715 |
|
Goodwill |
|
(479,851 |
) |
|
|
(452,390 |
) |
|
|
(452,390 |
) |
Other intangible assets, net |
|
(49,096 |
) |
|
|
(27,124 |
) |
|
|
(29,242 |
) |
Preferred Stock, no par value |
|
(537,145 |
) |
|
|
(537,145 |
) |
|
|
(537,145 |
) |
Tangible common equity |
$ |
3,470,866 |
|
|
$ |
3,459,142 |
|
|
$ |
3,210,938 |
|
Total Synovus Financial Corp. shareholders’ equity to total assets ratio |
|
7.65 |
% |
|
|
7.49 |
% |
|
|
7.21 |
% |
Tangible common equity ratio |
|
5.90 |
|
|
|
5.84 |
|
|
|
5.52 |
|
|
|
|
|
|
|
||||||
(1) An assumed marginal tax rate of 24.3% for 3Q23 and 2Q23 and 23.8% for 3Q22 was applied. |
|
|
|
|
|
||||||
Amounts may not total due to rounding |
|
|
|
|
|
||||||
Synovus |
|
|
||||||||
INCOME STATEMENT DATA |
|
|
|
|
|
|||||
(Unaudited) |
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
(Dollars in thousands, except per share data) |
Nine Months Ended September 30, |
|||||||||
|
|
|
|
|
|
|||||
|
2023 |
|
2022 |
|
'23 vs '22 |
|||||
|
|
|
% Change |
|||||||
|
|
|
|
|
|
|||||
Interest income |
$ |
2,262,061 |
|
|
$ |
1,421,133 |
|
|
59 |
% |
Interest expense |
|
882,619 |
|
|
|
125,578 |
|
|
603 |
|
|
|
|
|
|
|
|||||
Net interest income |
|
1,379,442 |
|
|
|
1,295,555 |
|
|
6 |
|
Provision for (reversal of) credit losses |
|
143,607 |
|
|
|
49,669 |
|
|
189 |
|
|
|
|
|
|
|
|||||
Net interest income after provision for credit losses |
|
1,235,835 |
|
|
|
1,245,886 |
|
|
(1 |
) |
|
|
|
|
|
|
|||||
Non-interest revenue: |
|
|
|
|
|
|||||
Service charges on deposit accounts |
|
67,836 |
|
|
|
69,428 |
|
|
(2 |
) |
Fiduciary and asset management fees |
|
59,928 |
|
|
|
59,577 |
|
|
1 |
|
Card fees |
|
51,485 |
|
|
|
45,946 |
|
|
12 |
|
Brokerage revenue |
|
63,703 |
|
|
|
47,038 |
|
|
35 |
|
Mortgage banking income |
|
12,138 |
|
|
|
14,922 |
|
|
(19 |
) |
Capital markets income |
|
27,077 |
|
|
|
19,704 |
|
|
37 |
|
Income from bank-owned life insurance |
|
21,106 |
|
|
|
22,514 |
|
|
(6 |
) |
Investment securities gains (losses), net |
|
1,030 |
|
|
|
— |
|
|
nm |
|
Recovery of NPA |
|
13,126 |
|
|
|
— |
|
|
nm |
|
Other non-interest revenue |
|
35,112 |
|
|
|
27,768 |
|
|
26 |
|
|
|
|
|
|
|
|||||
Total non-interest revenue |
|
352,541 |
|
|
|
306,897 |
|
|
15 |
|
|
|
|
|
|
|
|||||
Non-interest expense: |
|
|
|
|
|
|||||
Salaries and other personnel expense |
|
551,667 |
|
|
|
499,081 |
|
|
11 |
|
Net occupancy, equipment, and software expense |
|
131,435 |
|
|
|
129,538 |
|
|
1 |
|
Third-party processing and other services |
|
64,932 |
|
|
|
65,486 |
|
|
(1 |
) |
Professional fees |
|
28,707 |
|
|
|
26,094 |
|
|
10 |
|
FDIC insurance and other regulatory fees |
|
33,266 |
|
|
|
20,851 |
|
|
60 |
|
Restructuring charges (reversals) |
|
16,476 |
|
|
|
(7,318 |
) |
|
nm |
|
Loss on other loans held for sale |
|
50,064 |
|
|
|
— |
|
|
nm |
|
Other operating expenses |
|
106,019 |
|
|
|
114,779 |
|
|
(8 |
) |
|
|
|
|
|
|
|||||
Total non-interest expense |
|
982,566 |
|
|
|
848,511 |
|
|
16 |
|
|
|
|
|
|
|
|||||
Income before income taxes |
|
605,810 |
|
|
|
704,272 |
|
|
(14 |
) |
Income tax expense |
|
133,242 |
|
|
|
152,140 |
|
|
(12 |
) |
|
|
|
|
|
|
|||||
Net income |
|
472,568 |
|
|
|
552,132 |
|
|
(14 |
) |
|
|
|
|
|
|
|||||
Less: Net income attributable to noncontrolling interest |
|
(796 |
) |
|
|
— |
|
|
nm |
|
|
|
|
|
|
|
|||||
Net income attributable to Synovus Financial Corp. |
|
473,364 |
|
|
|
552,132 |
|
|
(14 |
) |
|
|
|
|
|
|
|||||
Less: Preferred stock dividends |
|
26,254 |
|
|
|
24,872 |
|
|
6 |
|
|
|
|
|
|
|
|||||
Net income available to common shareholders |
$ |
447,110 |
|
|
$ |
527,260 |
|
|
(15 |
)% |
|
|
|
|
|
|
|||||
Net income per common share, basic |
$ |
3.06 |
|
|
$ |
3.63 |
|
|
(16 |
)% |
|
|
|
|
|
|
|||||
Net income per common share, diluted |
|
3.05 |
|
|
|
3.60 |
|
|
(15 |
) |
|
|
|
|
|
|
|||||
Cash dividends declared per common share |
|
1.14 |
|
|
|
1.02 |
|
|
12 |
|
|
|
|
|
|
|
|||||
Return on average assets * |
|
1.05 |
% |
|
|
1.29 |
% |
|
(24) bps |
|
Return on average common equity * |
|
14.23 |
|
|
|
16.37 |
|
|
(214 |
) |
|
|
|
|
|
|
|||||
Weighted average common shares outstanding, basic |
|
146,028 |
|
|
|
145,329 |
|
|
— |
% |
Weighted average common shares outstanding, diluted |
|
146,683 |
|
|
|
146,465 |
|
|
— |
|
|
|
|
|
|
|
|||||
nm - not meaningful |
|
|
|
|
|
|||||
bps - basis points |
|
|
|
|
|
|||||
* - ratios are annualized |
|
|
|
|
|
|||||
Amounts may not total due to rounding |
|
|
|
|
|
|||||
Synovus |
|
|
|
|
|
|
|
|
|
|
|
||||||
INCOME STATEMENT DATA |
|
|
|
|
|
|
|
|
|
|
|
||||||
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(Dollars in thousands, except per share data) |
2023 |
|
2022 |
|
Third Quarter |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Third Quarter |
|
Second Quarter |
|
First Quarter |
|
Fourth Quarter |
|
Third Quarter |
|
'23 vs '22 |
||||||
|
|
|
|
|
% Change |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest income |
$ |
786,039 |
|
|
759,143 |
|
|
716,879 |
|
|
654,654 |
|
|
551,299 |
|
43 |
% |
Interest expense |
|
342,880 |
|
|
303,612 |
|
|
236,128 |
|
|
153,308 |
|
|
73,380 |
|
367 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest income |
|
443,159 |
|
|
455,531 |
|
|
480,751 |
|
|
501,346 |
|
|
477,919 |
|
(7 |
) |
Provision for (reversal of) credit losses |
|
72,572 |
|
|
38,881 |
|
|
32,154 |
|
|
34,884 |
|
|
25,581 |
|
184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest income after provision for credit losses |
|
370,587 |
|
|
416,650 |
|
|
448,597 |
|
|
466,462 |
|
|
452,338 |
|
(18 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Non-interest revenue: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Service charges on deposit accounts |
|
21,385 |
|
|
23,477 |
|
|
22,974 |
|
|
23,639 |
|
|
23,398 |
|
(9 |
) |
Fiduciary and asset management fees |
|
20,205 |
|
|
20,027 |
|
|
19,696 |
|
|
18,836 |
|
|
19,201 |
|
5 |
|
Card fees |
|
18,602 |
|
|
17,059 |
|
|
15,824 |
|
|
15,887 |
|
|
15,101 |
|
23 |
|
Brokerage revenue |
|
20,237 |
|
|
20,908 |
|
|
22,558 |
|
|
19,996 |
|
|
17,140 |
|
18 |
|
Mortgage banking income |
|
3,671 |
|
|
4,609 |
|
|
3,858 |
|
|
2,554 |
|
|
5,065 |
|
(28 |
) |
Capital markets income |
|
6,377 |
|
|
6,975 |
|
|
13,725 |
|
|
6,998 |
|
|
6,839 |
|
(7 |
) |
Income from bank-owned life insurance |
|
6,965 |
|
|
6,878 |
|
|
7,262 |
|
|
7,206 |
|
|
6,792 |
|
3 |
|
Investment securities gains (losses), net |
|
— |
|
|
— |
|
|
1,030 |
|
|
— |
|
|
— |
|
nm |
|
Recovery of NPA |
|
— |
|
|
— |
|
|
13,126 |
|
|
— |
|
|
— |
|
nm |
|
Other non-interest revenue |
|
9,697 |
|
|
12,343 |
|
|
13,073 |
|
|
7,323 |
|
|
10,762 |
|
(10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total non-interest revenue |
|
107,139 |
|
|
112,276 |
|
|
133,126 |
|
|
102,439 |
|
|
104,298 |
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Salaries and other personnel expense |
|
179,741 |
|
|
183,001 |
|
|
188,924 |
|
|
182,629 |
|
|
173,334 |
|
4 |
|
Net occupancy, equipment, and software expense |
|
45,790 |
|
|
42,785 |
|
|
42,860 |
|
|
45,192 |
|
|
43,462 |
|
5 |
|
Third-party processing and other services |
|
21,439 |
|
|
21,659 |
|
|
21,833 |
|
|
23,130 |
|
|
22,539 |
|
(5 |
) |
Professional fees |
|
10,147 |
|
|
9,597 |
|
|
8,963 |
|
|
11,096 |
|
|
6,755 |
|
50 |
|
FDIC insurance and other regulatory fees |
|
11,837 |
|
|
11,162 |
|
|
10,268 |
|
|
8,232 |
|
|
7,707 |
|
54 |
|
Restructuring charges (reversals) |
|
17,319 |
|
|
(110 |
) |
|
(733 |
) |
|
(2,372 |
) |
|
956 |
|
nm |
|
Loss on other loans held for sale |
|
30,954 |
|
|
2,360 |
|
|
16,750 |
|
|
— |
|
|
— |
|
nm |
|
Other operating expenses |
|
36,305 |
|
|
36,727 |
|
|
32,987 |
|
|
41,089 |
|
|
39,257 |
|
(8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total non-interest expense |
|
353,532 |
|
|
307,181 |
|
|
321,852 |
|
|
308,996 |
|
|
294,010 |
|
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income before income taxes |
|
124,194 |
|
|
221,745 |
|
|
259,871 |
|
|
259,905 |
|
|
262,626 |
|
(53 |
) |
Income tax expense |
|
27,729 |
|
|
47,801 |
|
|
57,712 |
|
|
54,135 |
|
|
59,582 |
|
(53 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income |
|
96,465 |
|
|
173,944 |
|
|
202,159 |
|
|
205,770 |
|
|
203,044 |
|
(52 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Less: Net income attributable to noncontrolling interest |
|
(630 |
) |
|
(166 |
) |
|
— |
|
|
— |
|
|
— |
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income attributable to Synovus Financial Corp. |
|
97,095 |
|
|
174,110 |
|
|
202,159 |
|
|
205,770 |
|
|
203,044 |
|
(52 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Less: Preferred stock dividends |
|
9,672 |
|
|
8,291 |
|
|
8,291 |
|
|
8,291 |
|
|
8,291 |
|
17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income available to common shareholders |
$ |
87,423 |
|
|
165,819 |
|
|
193,868 |
|
|
197,479 |
|
|
194,753 |
|
(55 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income per common share, basic |
$ |
0.60 |
|
|
1.13 |
|
|
1.33 |
|
|
1.36 |
|
|
1.34 |
|
(55 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income per common share, diluted |
|
0.60 |
|
|
1.13 |
|
|
1.32 |
|
|
1.35 |
|
|
1.33 |
|
(55 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash dividends declared per common share |
|
0.38 |
|
|
0.38 |
|
|
0.38 |
|
|
0.34 |
|
|
0.34 |
|
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Return on average assets * |
|
0.64 |
% |
|
1.15 |
|
|
1.36 |
|
|
1.38 |
|
|
1.39 |
|
(75) bps |
|
Return on average common equity * |
|
8.2 |
|
|
15.5 |
|
|
19.2 |
|
|
20.9 |
|
|
18.7 |
|
(1,050 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Weighted average common shares outstanding, basic |
|
146,170 |
|
|
146,113 |
|
|
145,799 |
|
|
145,467 |
|
|
145,386 |
|
1 |
% |
Weighted average common shares outstanding, diluted |
|
146,740 |
|
|
146,550 |
|
|
146,727 |
|
|
146,528 |
|
|
146,418 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
nm - not meaningful |
|
|
|
|
|
|
|
|
|
|
|
||||||
bps - basis points |
|
|
|
|
|
|
|
|
|
|
|
||||||
* - ratios are annualized |
|
|
|
|
|
|
|
|
|
|
|
||||||
Amounts may not total due to rounding |
|
|
|
|
|
|
|
|
|
|
|
||||||
Synovus |
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
BALANCE SHEET DATA |
|
September 30, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
||||||
(Unaudited) |
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
(In thousands, except share data) |
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
ASSETS |
|
|
|
|
|
|
||||||
Cash and due from banks |
|
$ |
604,631 |
|
|
$ |
624,097 |
|
|
$ |
516,163 |
|
Interest-bearing funds with Federal Reserve Bank |
|
|
1,431,356 |
|
|
|
1,280,684 |
|
|
|
1,260,748 |
|
Interest earning deposits with banks |
|
|
65,468 |
|
|
|
34,632 |
|
|
|
32,445 |
|
Federal funds sold and securities purchased under resale agreements |
|
|
36,176 |
|
|
|
38,367 |
|
|
|
58,448 |
|
Cash, cash equivalents, and restricted cash |
|
|
2,137,631 |
|
|
|
1,977,780 |
|
|
|
1,867,804 |
|
|
|
|
|
|
|
|
||||||
Investment securities available for sale, at fair value |
|
|
9,237,191 |
|
|
|
9,678,103 |
|
|
|
9,587,508 |
|
Loans held for sale (includes $48,994, $51,136 and $56,517 measured at fair value, respectively) |
|
|
66,558 |
|
|
|
391,502 |
|
|
|
696,450 |
|
|
|
|
|
|
|
|
||||||
Loans, net of deferred fees and costs |
|
|
43,679,910 |
|
|
|
43,716,353 |
|
|
|
42,571,458 |
|
Allowance for loan losses |
|
|
(477,532 |
) |
|
|
(443,424 |
) |
|
|
(421,359 |
) |
Loans, net |
|
|
43,202,378 |
|
|
|
43,272,929 |
|
|
|
42,150,099 |
|
|
|
|
|
|
|
|
||||||
Cash surrender value of bank-owned life insurance |
|
|
1,107,092 |
|
|
|
1,089,280 |
|
|
|
1,084,060 |
|
Premises, equipment, and software, net |
|
|
364,054 |
|
|
|
370,632 |
|
|
|
376,823 |
|
Goodwill |
|
|
479,851 |
|
|
|
452,390 |
|
|
|
452,390 |
|
Other intangible assets, net |
|
|
49,096 |
|
|
|
27,124 |
|
|
|
29,242 |
|
Other assets |
|
|
2,699,079 |
|
|
|
2,471,638 |
|
|
|
2,395,146 |
|
Total assets |
|
$ |
59,342,930 |
|
|
$ |
59,731,378 |
|
|
$ |
58,639,522 |
|
|
|
|
|
|
|
|
||||||
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||||||
Liabilities: |
|
|
|
|
|
|
||||||
Deposits: |
|
|
|
|
|
|
||||||
Non-interest-bearing deposits |
|
$ |
12,976,574 |
|
|
$ |
15,639,899 |
|
|
$ |
16,359,551 |
|
Interest-bearing deposits |
|
|
37,227,316 |
|
|
|
33,231,660 |
|
|
|
31,338,013 |
|
|
|
|
|
|
|
|
||||||
Total deposits |
|
|
50,203,890 |
|
|
|
48,871,559 |
|
|
|
47,697,564 |
|
|
|
|
|
|
|
|
||||||
Federal funds purchased and securities sold under repurchase agreements |
|
|
98,270 |
|
|
|
146,588 |
|
|
|
240,210 |
|
Other short-term borrowings |
|
|
2,362 |
|
|
|
603,384 |
|
|
|
614,232 |
|
Long-term debt |
|
|
2,704,701 |
|
|
|
4,109,597 |
|
|
|
4,434,327 |
|
Other liabilities |
|
|
1,772,139 |
|
|
|
1,524,449 |
|
|
|
1,423,474 |
|
Total liabilities |
|
|
54,781,362 |
|
|
|
55,255,577 |
|
|
|
54,409,807 |
|
|
|
|
|
|
|
|
||||||
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 170,859,506, 170,141,492 and 170,097,791 respectively; outstanding 146,204,648, 145,486,634 and 145,442,933 respectively |
|
|
170,860 |
|
|
|
170,141 |
|
|
|
170,098 |
|
Additional paid-in capital |
|
|
3,940,507 |
|
|
|
3,920,346 |
|
|
|
3,916,729 |
|
Treasury stock, at cost; 24,654,858 shares |
|
|
(944,484 |
) |
|
|
(944,484 |
) |
|
|
(944,484 |
) |
Accumulated other comprehensive income (loss), net |
|
|
(1,679,404 |
) |
|
|
(1,442,117 |
) |
|
|
(1,534,314 |
) |
Retained earnings |
|
|
2,512,334 |
|
|
|
2,234,770 |
|
|
|
2,084,541 |
|
Total Synovus Financial Corp. shareholders’ equity |
|
|
4,536,958 |
|
|
|
4,475,801 |
|
|
|
4,229,715 |
|
Noncontrolling interest in subsidiary |
|
|
24,610 |
|
|
|
— |
|
|
|
— |
|
Total equity |
|
|
4,561,568 |
|
|
|
4,475,801 |
|
|
|
4,229,715 |
|
Total liabilities and equity |
|
$ |
59,342,930 |
|
|
$ |
59,731,378 |
|
|
$ |
58,639,522 |
|
Synovus |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
AVERAGE BALANCES, INTEREST, AND YIELDS/RATES |
|||||||||||||||||||||||||||||
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Third Quarter 2023 |
|
Second Quarter 2023 |
|
Third 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) |
$ |
34,990,459 |
|
|
$ |
579,177 |
|
6.57 |
% |
|
$ |
35,628,637 |
|
|
$ |
566,823 |
|
6.38 |
% |
|
$ |
32,836,799 |
|
|
$ |
384,995 |
|
4.65 |
% |
Consumer loans (1) (2) |
|
8,509,757 |
|
|
|
108,065 |
|
5.06 |
|
|
|
8,470,478 |
|
|
|
104,545 |
|
4.94 |
|
|
|
8,931,573 |
|
|
|
94,425 |
|
4.21 |
|
Less: Allowance for loan losses |
|
(461,385 |
) |
|
|
— |
|
— |
|
|
|
(466,700 |
) |
|
|
— |
|
— |
|
|
|
(419,160 |
) |
|
|
— |
|
— |
|
Loans, net |
|
43,038,831 |
|
|
|
687,242 |
|
6.34 |
|
|
|
43,632,415 |
|
|
|
671,368 |
|
6.17 |
|
|
|
41,349,212 |
|
|
|
479,420 |
|
4.60 |
|
Investment securities available for sale |
|
11,194,291 |
|
|
|
61,642 |
|
2.20 |
|
|
|
11,200,717 |
|
|
|
60,421 |
|
2.16 |
|
|
|
11,126,705 |
|
|
|
53,550 |
|
1.92 |
|
Trading account assets |
|
16,186 |
|
|
|
237 |
|
5.86 |
|
|
|
21,328 |
|
|
|
309 |
|
5.80 |
|
|
|
16,771 |
|
|
|
81 |
|
1.93 |
|
Other earning assets(4) |
|
1,237,445 |
|
|
|
16,369 |
|
5.17 |
|
|
|
1,446,425 |
|
|
|
18,081 |
|
4.95 |
|
|
|
1,012,717 |
|
|
|
5,791 |
|
2.24 |
|
FHLB and Federal Reserve Bank stock |
|
244,906 |
|
|
|
3,783 |
|
6.18 |
|
|
|
280,248 |
|
|
|
4,301 |
|
6.14 |
|
|
|
244,879 |
|
|
|
1,412 |
|
2.31 |
|
Mortgage loans held for sale |
|
53,904 |
|
|
|
879 |
|
6.52 |
|
|
|
54,603 |
|
|
|
852 |
|
6.24 |
|
|
|
66,601 |
|
|
|
862 |
|
5.18 |
|
Other loans held for sale |
|
881,067 |
|
|
|
17,035 |
|
7.57 |
|
|
|
546,224 |
|
|
|
4,949 |
|
3.58 |
|
|
|
892,805 |
|
|
|
11,155 |
|
4.89 |
|
Total interest earning assets |
|
56,666,630 |
|
|
$ |
787,187 |
|
5.51 |
% |
|
|
57,181,960 |
|
|
$ |
760,281 |
|
5.33 |
% |
|
|
54,709,690 |
|
|
$ |
552,271 |
|
4.00 |
% |
Cash and due from banks |
|
509,511 |
|
|
|
|
|
|
|
646,066 |
|
|
|
|
|
|
|
557,537 |
|
|
|
|
|
||||||
Premises and equipment |
|
365,568 |
|
|
|
|
|
|
|
369,039 |
|
|
|
|
|
|
|
383,189 |
|
|
|
|
|
||||||
Other real estate |
|
— |
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
2,398 |
|
|
|
|
|
||||||
Cash surrender value of bank-owned life insurance |
|
1,102,626 |
|
|
|
|
|
|
|
1,095,866 |
|
|
|
|
|
|
|
1,080,914 |
|
|
|
|
|
||||||
Other assets(5) |
|
1,272,344 |
|
|
|
|
|
|
|
1,222,146 |
|
|
|
|
|
|
|
1,322,251 |
|
|
|
|
|
||||||
Total assets |
$ |
59,916,679 |
|
|
|
|
|
|
$ |
60,515,077 |
|
|
|
|
|
|
$ |
58,055,979 |
|
|
|
|
|
||||||
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing demand deposits |
$ |
10,114,171 |
|
|
$ |
52,983 |
|
2.08 |
% |
|
$ |
9,891,375 |
|
|
$ |
41,803 |
|
1.70 |
% |
|
$ |
8,437,408 |
|
|
$ |
5,782 |
|
0.27 |
% |
Money market accounts |
|
13,147,465 |
|
|
|
95,339 |
|
2.88 |
|
|
|
13,468,210 |
|
|
|
85,397 |
|
2.54 |
|
|
|
15,410,964 |
|
|
|
20,696 |
|
0.53 |
|
Savings deposits |
|
1,178,322 |
|
|
|
280 |
|
0.09 |
|
|
|
1,276,040 |
|
|
|
281 |
|
0.09 |
|
|
|
1,508,312 |
|
|
|
84 |
|
0.02 |
|
Time deposits |
|
6,180,584 |
|
|
|
59,972 |
|
3.85 |
|
|
|
4,866,221 |
|
|
|
39,551 |
|
3.26 |
|
|
|
2,270,163 |
|
|
|
2,428 |
|
0.42 |
|
Brokered deposits |
|
6,442,690 |
|
|
|
83,486 |
|
5.14 |
|
|
|
6,342,751 |
|
|
|
74,748 |
|
4.73 |
|
|
|
3,899,669 |
|
|
|
17,927 |
|
1.82 |
|
Federal funds purchased and securities sold under repurchase agreements |
|
73,344 |
|
|
|
296 |
|
1.58 |
|
|
|
88,591 |
|
|
|
351 |
|
1.57 |
|
|
|
240,412 |
|
|
|
641 |
|
1.04 |
|
Other short-term borrowings |
|
1,722 |
|
|
|
— |
|
— |
|
|
|
455,050 |
|
|
|
5,566 |
|
4.84 |
|
|
|
709,078 |
|
|
|
3,666 |
|
2.02 |
|
Long-term debt |
|
3,230,374 |
|
|
|
50,524 |
|
6.18 |
|
|
|
3,821,126 |
|
|
|
55,915 |
|
5.82 |
|
|
|
2,656,939 |
|
|
|
22,156 |
|
3.29 |
|
Total interest-bearing liabilities |
|
40,368,672 |
|
|
$ |
342,880 |
|
3.37 |
% |
|
|
40,209,364 |
|
|
$ |
303,612 |
|
3.03 |
% |
|
|
35,132,945 |
|
|
$ |
73,380 |
|
0.83 |
% |
Non-interest-bearing demand deposits |
|
13,049,343 |
|
|
|
|
|
|
|
13,874,482 |
|
|
|
|
|
|
|
16,904,353 |
|
|
|
|
|
||||||
Other liabilities |
|
1,713,131 |
|
|
|
|
|
|
|
1,556,863 |
|
|
|
|
|
|
|
1,340,020 |
|
|
|
|
|
||||||
Total equity |
|
4,785,533 |
|
|
|
|
|
|
|
4,874,368 |
|
|
|
|
|
|
|
4,678,661 |
|
|
|
|
|
||||||
Total liabilities and equity |
$ |
59,916,679 |
|
|
|
|
|
|
$ |
60,515,077 |
|
|
|
|
|
|
$ |
58,055,979 |
|
|
|
|
|
||||||
Net interest income and net interest margin, taxable equivalent (6) |
|
|
$ |
444,307 |
|
3.11 |
% |
|
|
|
$ |
456,669 |
|
3.20 |
% |
|
|
|
$ |
478,891 |
|
3.47 |
% |
||||||
Less: taxable-equivalent adjustment |
|
|
|
1,148 |
|
|
|
|
|
|
1,138 |
|
|
|
|
|
|
972 |
|
|
|||||||||
Net interest income |
|
|
$ |
443,159 |
|
|
|
|
|
$ |
455,531 |
|
|
|
|
|
$ |
477,919 |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(1) |
Average loans are shown net of deferred fees and costs. NPLs are included. |
(2) |
Interest income includes net loan fees as follows: Third Quarter 2023 — $11.8 million, Second Quarter 2023 — $11.3 million, and Third 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 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 $(1.60) billion, $(1.46) billion, and $(1.06) billion for the Third Quarter 2023, Second Quarter 2023, and Third 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 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
AVERAGE BALANCES, INTEREST, AND YIELDS/RATES |
||||||||||||||||||||
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Nine Months Ended September 30, |
|
||||||||||||||||||
|
2023 |
|
2022 |
|
||||||||||||||||
(dollars in thousands) |
Average Balance |
|
Interest |
|
Yield/ Rate |
|
Average Balance |
|
Interest |
|
Yield/ Rate |
|
||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial loans (1) (2) (3) |
$ |
35,216,487 |
|
|
$ |
1,672,529 |
|
6.35 |
% |
|
$ |
31,828,932 |
|
|
$ |
974,024 |
|
4.09 |
% |
|
Consumer loans (1) (2) |
|
8,580,029 |
|
|
|
316,757 |
|
4.92 |
|
|
|
8,749,927 |
|
|
|
259,619 |
|
3.95 |
|
|
Less: Allowance for loan losses |
|
(457,818 |
) |
|
|
|
|
|
|
(419,478 |
) |
|
|
|
|
|
||||
Loans, net |
|
43,338,698 |
|
|
|
1,989,286 |
|
6.14 |
|
|
|
40,159,381 |
|
|
|
1,233,643 |
|
4.11 |
|
|
Investment securities available for sale |
|
11,229,290 |
|
|
|
183,118 |
|
2.17 |
|
|
|
11,179,378 |
|
|
|
151,111 |
|
1.80 |
|
|
Trading account assets |
|
16,302 |
|
|
|
671 |
|
5.49 |
|
|
|
12,640 |
|
|
|
193 |
|
2.04 |
|
|
Other earning assets(4) |
|
1,398,211 |
|
|
|
51,660 |
|
4.87 |
|
|
|
1,245,102 |
|
|
|
8,267 |
|
0.88 |
|
|
FHLB and Federal Reserve Bank stock |
|
277,136 |
|
|
|
11,439 |
|
5.50 |
|
|
|
195,238 |
|
|
|
3,917 |
|
2.67 |
|
|
Mortgage loans held for sale |
|
48,398 |
|
|
|
2,297 |
|
6.33 |
|
|
|
85,126 |
|
|
|
2,665 |
|
4.17 |
|
|
Other loans held for sale |
|
625,262 |
|
|
|
26,995 |
|
5.69 |
|
|
|
739,627 |
|
|
|
24,133 |
|
4.30 |
|
|
Total interest earning assets |
|
56,933,297 |
|
|
$ |
2,265,466 |
|
5.32 |
% |
|
|
53,616,492 |
|
|
$ |
1,423,929 |
|
3.55 |
% |
|
Cash and due from banks |
|
593,023 |
|
|
|
|
|
|
|
548,322 |
|
|
|
|
|
|
||||
Premises and equipment |
|
367,332 |
|
|
|
|
|
|
|
389,083 |
|
|
|
|
|
|
||||
Other real estate |
|
— |
|
|
|
|
|
|
|
8,498 |
|
|
|
|
|
|
||||
Cash surrender value of bank-owned life insurance |
|
1,096,567 |
|
|
|
|
|
|
|
1,076,381 |
|
|
|
|
|
|
||||
Other assets(5) |
|
1,187,026 |
|
|
|
|
|
|
|
1,515,226 |
|
|
|
|
|
|
||||
Total assets |
$ |
60,177,245 |
|
|
|
|
|
|
$ |
57,154,002 |
|
|
|
|
|
|
||||
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest-bearing demand deposits |
$ |
9,702,651 |
|
|
$ |
118,007 |
|
1.63 |
% |
|
$ |
9,162,684 |
|
|
$ |
11,752 |
|
0.17 |
% |
|
Money market accounts |
|
13,665,672 |
|
|
|
253,351 |
|
2.48 |
|
|
|
15,592,671 |
|
|
|
32,896 |
|
0.28 |
|
|
Savings deposits |
|
1,274,142 |
|
|
|
771 |
|
0.08 |
|
|
|
1,491,893 |
|
|
|
223 |
|
0.02 |
|
|
Time deposits |
|
4,892,146 |
|
|
|
121,019 |
|
3.31 |
|
|
|
2,700,505 |
|
|
|
6,254 |
|
0.31 |
|
|
Brokered deposits |
|
6,116,392 |
|
|
|
214,627 |
|
4.69 |
|
|
|
3,192,848 |
|
|
|
27,952 |
|
1.17 |
|
|
Federal funds purchased and securities sold under repurchase agreements |
|
98,212 |
|
|
|
1,317 |
|
1.77 |
|
|
|
227,335 |
|
|
|
871 |
|
0.51 |
|
|
Other short-term borrowings |
|
705,292 |
|
|
|
24,559 |
|
4.59 |
|
|
|
400,862 |
|
|
|
4,561 |
|
1.50 |
|
|
Long-term debt |
|
3,400,156 |
|
|
|
148,968 |
|
5.80 |
|
|
|
1,512,059 |
|
|
|
41,069 |
|
3.61 |
|
|
Total interest-bearing liabilities |
|
39,854,663 |
|
|
$ |
882,619 |
|
2.96 |
% |
|
|
34,280,857 |
|
|
$ |
125,578 |
|
0.49 |
% |
|
Non-interest-bearing demand deposits |
|
13,972,152 |
|
|
|
|
|
|
|
16,786,794 |
|
|
|
|
|
|
||||
Other liabilities |
|
1,592,230 |
|
|
|
|
|
|
|
1,243,900 |
|
|
|
|
|
|
||||
Total equity |
|
4,758,200 |
|
|
|
|
|
|
|
4,842,451 |
|
|
|
|
|
|
||||
Total liabilities and equity |
$ |
60,177,245 |
|
|
|
|
|
|
$ |
57,154,002 |
|
|
|
|
|
|
||||
Net interest income, taxable equivalent net interest margin (6) |
|
|
$ |
1,382,847 |
|
3.25 |
% |
|
|
|
$ |
1,298,351 |
|
3.24 |
% |
|
||||
Less: taxable-equivalent adjustment |
|
|
|
3,405 |
|
|
|
|
|
|
2,796 |
|
|
|
||||||
Net interest income |
|
|
$ |
1,379,442 |
|
|
|
|
|
$ |
1,295,555 |
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(1) |
Average loans are shown net of deferred fees and costs. NPLs are included. |
(2) |
Interest income includes net loan fees as follows: 2023 — $34.6 million and 2022 — $45.6 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 $(1.53) billion and $(747.7) million for the nine months ended September 30, 2023 and 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) |
|
Total Loans |
|
Total Loans |
|
Linked Quarter |
Total Loans |
|
Year/Year |
||||||
(Dollars in thousands) |
|
|
|
|
|
||||||||||
|
|
|
|
|
|
||||||||||
Loan Type |
|
September 30, 2023 |
|
June 30, 2023 |
|
% Change |
|
September 30, 2022 |
|
% Change |
|||||
Commercial, Financial, and Agricultural |
|
$ |
14,498,966 |
|
$ |
14,166,890 |
|
2 |
% |
|
$ |
13,254,966 |
|
9 |
% |
Owner-Occupied |
|
|
8,281,988 |
|
|
8,364,342 |
|
(1 |
) |
|
|
7,957,550 |
|
4 |
|
Total Commercial & Industrial |
|
|
22,780,954 |
|
|
22,531,232 |
|
1 |
|
|
|
21,212,516 |
|
7 |
|
Multi-Family |
|
|
3,930,617 |
|
|
3,597,497 |
|
9 |
|
|
|
2,949,172 |
|
33 |
|
Hotels |
|
|
1,790,094 |
|
|
1,771,381 |
|
1 |
|
|
|
1,712,016 |
|
5 |
|
Office Buildings |
|
|
1,911,095 |
|
|
3,031,806 |
|
(37 |
) |
|
|
2,945,771 |
|
(35 |
) |
Shopping Centers |
|
|
1,327,770 |
|
|
1,329,492 |
|
— |
|
|
|
1,441,385 |
|
(8 |
) |
Warehouses |
|
|
985,723 |
|
|
1,068,734 |
|
(8 |
) |
|
|
943,961 |
|
4 |
|
Other Investment Property |
|
|
1,432,456 |
|
|
1,471,356 |
|
(3 |
) |
|
|
1,246,099 |
|
15 |
|
Total Investment Properties |
|
|
11,377,755 |
|
|
12,270,266 |
|
(7 |
) |
|
|
11,238,404 |
|
1 |
|
1-4 Family Construction |
|
|
224,091 |
|
|
205,459 |
|
9 |
|
|
|
249,840 |
|
(10 |
) |
1-4 Family Investment Mortgage |
|
|
396,813 |
|
|
410,267 |
|
(3 |
) |
|
|
389,787 |
|
2 |
|
Total 1-4 Family Properties |
|
|
620,904 |
|
|
615,726 |
|
1 |
|
|
|
639,627 |
|
(3 |
) |
Commercial Development |
|
|
64,212 |
|
|
60,910 |
|
5 |
|
|
|
92,159 |
|
(30 |
) |
Residential Development |
|
|
92,209 |
|
|
98,229 |
|
(6 |
) |
|
|
119,019 |
|
(23 |
) |
Land Acquisition |
|
|
239,773 |
|
|
248,767 |
|
(4 |
) |
|
|
198,756 |
|
21 |
|
Land and Development |
|
|
396,194 |
|
|
407,906 |
|
(3 |
) |
|
|
409,934 |
|
(3 |
) |
Total Commercial Real Estate |
|
|
12,394,853 |
|
|
13,293,898 |
|
(7 |
) |
|
|
12,287,965 |
|
1 |
|
Consumer Mortgages |
|
|
5,391,282 |
|
|
5,379,284 |
|
— |
|
|
|
5,166,928 |
|
4 |
|
Home Equity |
|
|
1,784,356 |
|
|
1,773,987 |
|
1 |
|
|
|
1,708,246 |
|
4 |
|
Credit Cards |
|
|
191,046 |
|
|
187,677 |
|
2 |
|
|
|
197,978 |
|
(4 |
) |
Other Consumer Loans |
|
|
1,137,419 |
|
|
1,187,459 |
|
(4 |
) |
|
|
1,997,825 |
|
(43 |
) |
Total Consumer |
|
|
8,504,103 |
|
|
8,528,407 |
|
— |
|
|
|
9,070,977 |
|
(6 |
) |
Total |
|
$ |
43,679,910 |
|
$ |
44,353,537 |
|
(2 |
)% |
|
$ |
42,571,458 |
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
NON-PERFORMING LOANS COMPOSITION |
|
|
|
|
|
|
|
|
|||||||
(Unaudited) |
|
Total Non-performing Loans |
|
Total Non-performing Loans |
|
Linked Quarter |
|
Total Non-performing Loans |
|
Year/Year |
|||||
(Dollars in thousands) |
|
|
|
|
|
||||||||||
|
|
|
|
|
|
||||||||||
Loan Type |
|
September 30, 2023 |
|
June 30, 2023 |
|
% Change |
|
September 30, 2022 |
|
% Change |
|||||
Commercial, Financial, and Agricultural |
|
$ |
97,468 |
|
$ |
144,415 |
|
(33 |
)% |
|
$ |
59,275 |
|
64 |
% |
Owner-Occupied |
|
|
84,505 |
|
|
22,197 |
|
281 |
|
|
|
8,433 |
|
902 |
|
Total Commercial & Industrial |
|
|
181,973 |
|
|
166,612 |
|
9 |
|
|
|
67,708 |
|
169 |
|
Multi-Family |
|
|
1,702 |
|
|
1,748 |
|
(3 |
) |
|
|
2,550 |
|
(33 |
) |
Office Buildings |
|
|
27,810 |
|
|
28,024 |
|
(1 |
) |
|
|
884 |
|
nm |
|
Shopping Centers |
|
|
653 |
|
|
699 |
|
(7 |
) |
|
|
742 |
|
(12 |
) |
Warehouses |
|
|
207 |
|
|
218 |
|
(5 |
) |
|
|
223 |
|
(7 |
) |
Other Investment Property |
|
|
572 |
|
|
664 |
|
(14 |
) |
|
|
641 |
|
(11 |
) |
Total Investment Properties |
|
|
30,944 |
|
|
31,353 |
|
(1 |
) |
|
|
5,040 |
|
514 |
|
1-4 Family Construction |
|
|
— |
|
|
632 |
|
nm |
|
|
55 |
|
nm |
||
1-4 Family Investment Mortgage |
|
|
3,386 |
|
|
3,525 |
|
(4 |
) |
|
|
3,036 |
|
12 |
|
Total 1-4 Family Properties |
|
|
3,386 |
|
|
4,157 |
|
(19 |
) |
|
|
3,091 |
|
10 |
|
Commercial Development |
|
|
— |
|
|
— |
|
nm |
|
|
422 |
|
(100 |
) |
|
Residential Development |
|
|
267 |
|
|
267 |
|
— |
|
|
|
267 |
|
— |
|
Land Acquisition |
|
|
538 |
|
|
871 |
|
(38 |
) |
|
|
980 |
|
(45 |
) |
Land and Development |
|
|
805 |
|
|
1,138 |
|
(29 |
) |
|
|
1,669 |
|
(52 |
) |
Total Commercial Real Estate |
|
|
35,135 |
|
|
36,648 |
|
(4 |
) |
|
|
9,800 |
|
259 |
|
Consumer Mortgages |
|
|
43,863 |
|
|
41,877 |
|
5 |
|
|
|
32,527 |
|
35 |
|
Home Equity |
|
|
11,620 |
|
|
9,936 |
|
17 |
|
|
|
7,121 |
|
63 |
|
Other Consumer Loans |
|
|
7,941 |
|
|
6,433 |
|
23 |
|
|
|
4,938 |
|
61 |
|
Total Consumer |
|
|
63,424 |
|
|
58,246 |
|
9 |
|
|
|
44,586 |
|
42 |
|
Total |
|
$ |
280,532 |
|
$ |
261,506 |
|
7 |
% |
|
$ |
122,094 |
|
130 |
% |
Synovus |
|
|
|
|
|
|
|
|
|
|
|
|
|||
CREDIT QUALITY DATA |
|
|
|||||||||||||
(Unaudited) |
|
|
|
|
|
|
|
|
|||||||
(Dollars in thousands) |
2023 |
|
2022 |
|
Third Quarter |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Third |
|
Second |
|
First |
|
Fourth |
|
Third |
|
'23 vs '22 |
|||
|
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
% Change |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Non-performing Loans (NPLs) |
|
$ |
280,532 |
|
|
261,506 |
|
182,460 |
|
128,061 |
|
122,094 |
|
130 |
% |
Impaired Loans Held for Sale |
|
|
— |
|
|
— |
|
— |
|
— |
|
447 |
|
(100 |
) |
Other Real Estate and Other Assets |
|
|
— |
|
|
— |
|
— |
|
15,320 |
|
15,320 |
|
(100 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Non-performing Assets (NPAs) |
|
|
280,532 |
|
|
261,506 |
|
182,460 |
|
143,381 |
|
137,861 |
|
103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Allowance for Loan Losses (ALL) |
|
|
477,532 |
|
|
471,238 |
|
457,010 |
|
443,424 |
|
421,359 |
|
13 |
|
Reserve for Unfunded Commitments |
|
|
55,185 |
|
|
55,729 |
|
57,473 |
|
57,455 |
|
57,936 |
|
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Allowance for Credit Losses (ACL) |
|
|
532,717 |
|
|
526,967 |
|
514,483 |
|
500,879 |
|
479,295 |
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Net Charge-Offs - Quarter |
|
|
66,822 |
|
|
26,396 |
|
18,550 |
|
13,300 |
|
4,682 |
|
|
|
Net Charge-Offs - YTD |
|
|
111,768 |
|
|
44,946 |
|
18,550 |
|
53,156 |
|
39,856 |
|
|
|
Net Charge-Offs / Average Loans - Quarter (1) |
|
|
0.61 |
% |
|
0.24 |
|
0.17 |
|
0.12 |
|
0.04 |
|
|
|
Net Charge-Offs / Average Loans - YTD (1) |
|
|
0.34 |
|
|
0.20 |
|
0.17 |
|
0.13 |
|
0.13 |
|
|
|
NPLs / Loans |
|
|
0.64 |
|
|
0.59 |
|
0.41 |
|
0.29 |
|
0.29 |
|
|
|
NPAs / Loans, ORE and specific other assets |
|
|
0.64 |
|
|
0.59 |
|
0.41 |
|
0.33 |
|
0.32 |
|
|
|
ACL/Loans |
|
|
1.22 |
|
|
1.19 |
|
1.17 |
|
1.15 |
|
1.13 |
|
|
|
ALL/Loans |
|
|
1.09 |
|
|
1.06 |
|
1.04 |
|
1.01 |
|
0.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
ACL/NPLs |
|
|
189.90 |
|
|
201.51 |
|
281.97 |
|
391.13 |
|
392.56 |
|
|
|
ALL/NPLs |
|
|
170.22 |
|
|
180.20 |
|
250.47 |
|
346.26 |
|
345.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Past Due Loans over 90 days and Still Accruing |
|
$ |
3,792 |
|
|
3,643 |
|
3,529 |
|
3,373 |
|
3,443 |
|
10 |
|
As a Percentage of Loans Outstanding |
|
|
0.01 |
% |
|
0.01 |
|
0.01 |
|
0.01 |
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total Past Due Loans and Still Accruing |
|
$ |
54,974 |
|
|
84,946 |
|
55,053 |
|
65,568 |
|
63,545 |
|
(13 |
) |
As a Percentage of Loans Outstanding |
|
|
0.13 |
% |
|
0.19 |
|
0.12 |
|
0.15 |
|
0.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
(1) Ratio is annualized. |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
SELECTED CAPITAL INFORMATION (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|||
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
September 30,
|
|
December 31,
|
|
September 30,
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Common Equity Tier 1 Capital Ratio |
|
|
10.13 |
% |
|
9.63 |
|
9.52 |
|
|
|
|
|
|
|
Tier 1 Capital Ratio |
|
|
11.18 |
|
|
10.68 |
|
10.59 |
|
|
|
|
|
|
|
Total Risk-Based Capital Ratio |
|
|
13.12 |
|
|
12.54 |
|
12.45 |
|
|
|
|
|
|
|
Tier 1 Leverage Ratio |
|
|
9.38 |
|
|
9.07 |
|
9.04 |
|
|
|
|
|
|
|
Total Synovus Financial Corp. shareholders' equity as a Percentage of Total Assets |
|
|
7.65 |
|
|
7.49 |
|
7.21 |
|
|
|
|
|
|
|
Tangible Common Equity Ratio (2) (4) |
|
|
5.90 |
|
|
5.84 |
|
5.52 |
|
|
|
|
|
|
|
Book Value Per Common Share (3) |
|
$ |
27.36 |
|
|
27.07 |
|
25.39 |
|
|
|
|
|
|
|
Tangible Book Value Per Common Share (2) |
|
|
23.74 |
|
|
23.78 |
|
22.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
(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. |
|
|
|
|
|||||||||||
