Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter and year ended December 31, 2019. The Board of Directors also approved a 10% increase in the Company’s quarterly common stock dividend from $0.30 to $0.33 per share, effective with the quarterly dividend payable in April 2020.
2019 Highlights
-
Net income available to common shareholders for 2019 was $540.9 million or $3.47 per diluted share as compared to $410.5 million or $3.47 per diluted share for 2018.
- Adjusted earnings per diluted share for 2019 were $3.90 as compared to $3.64 for 2018, an increase of 7.3%.
- Loans up $11.2 billion, or 43.2%, from 2018.
- Deposits up $11.7 billion, or 43.7%, from 2018.
- Non-interest income was $355.9 million, an increase of $75.8 million from 2018.
- Non-interest expense was $1.1 billion in 2019, an increase of $269.5 million from 2018.
- Net interest margin of 3.70%, a decline of 16 basis points from the previous year. Excluding the impact of purchase accounting adjustments (PAA), net interest margin was 3.47%, down 39 basis points from the prior year.
- Credit quality was strong, with the non-performing loan (NPL) ratio declining 14 basis points from year-end 2018 to 0.27% and the non-performing asset (NPA) ratio declining 7 basis points from the prior year to 0.37%. The net charge-off ratio was 0.16% in 2019 compared to 0.20% in the prior year.
- Completed integration of Florida Community Bank (FCB) and introduced new teams and products in legacy FCB markets.
- Following the FCB acquisition, the Company returned $893 million to common shareholders during the year with repurchases of $725 million in common stock and $168 million in common dividends.
- Total share count declined 10.9% from January 1, 2019.
Fourth Quarter 2019 Highlights
- Diluted EPS of $0.97; adjusted diluted EPS of $0.94, down 3.0% sequentially and up 3.1% year-over-year.
- Period-end loan growth of $744.6 million, or 8.1% annualized, from prior quarter on total funded loan production of $3.55 billion.
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Period-end deposit growth of $972.4 million, or 10.3% annualized, from third quarter 2019.
- Core transaction deposits increased $373.0 million from the prior quarter.
- Total deposit costs declined 13 basis points from the previous quarter.
- Net interest margin of 3.65%, a decline of 4 basis points from the previous quarter. Excluding the impact of purchase accounting adjustments (PAA), net interest margin was 3.40%, down 2 basis points from the prior quarter.
- Non-interest income was $98.0 million in the fourth quarter, an increase of $9.2 million from the third quarter and $30.0 million from the prior-year quarter.
- Non-interest expense was $266.1 million in the fourth quarter, a decrease of $10.2 million from the third quarter and an increase of $56.2 million from the prior-year quarter.
- Credit quality metrics remained solid, with the NPL ratio and the NPA ratio each declining by 5 basis points, to 0.27% and 0.37%, respectively. The net charge-off ratio was 0.10%.
- Repurchased $36.5 million in common stock (1.1 million shares) during the quarter.
Fourth Quarter Summary
Reported | Adjusted | ||||||||||||||||||||||
(dollars in thousands) | 4Q19 | 3Q19 | 4Q18 | 4Q19 | 3Q19 | 4Q18 | |||||||||||||||||
Net income available to common shareholders | $ | 143,393 | $ | 127,435 | $ | 101,919 | $ | 140,069 | $ | 149,732 | $ | 107,001 | |||||||||||
Diluted earnings per share | 0.97 | 0.83 | 0.87 | 0.94 | 0.97 | 0.91 | |||||||||||||||||
Total loans | 37,162,450 | 36,417,826 | 25,946,573 | N/A | N/A | N/A | |||||||||||||||||
Total deposits | 38,405,504 | 37,433,070 | 26,720,322 | N/A | N/A | N/A | |||||||||||||||||
Total revenues | 497,992 | 491,676 | 366,105 | 492,049 | 494,213 | 368,189 | |||||||||||||||||
Return on avg assets | 1.27 | % | 1.14 | % | 1.29 | % | 1.24 | % | 1.33 | % | 1.36 | % | |||||||||||
Return on avg common equity | 13.08 | 11.36 | 14.25 | 12.78 | 13.35 | 14.96 | |||||||||||||||||
Return on avg tangible common equity | 15.18 | 13.19 | 14.63 | 14.84 | 15.46 | 15.36 | |||||||||||||||||
Net interest margin | 3.65 | 3.69 | 3.92 | 3.40 | 3.42 | N/A | |||||||||||||||||
Efficiency ratio | 53.44 | 56.20 | 57.34 | 53.20 | 51.71 | 55.98 | |||||||||||||||||
Net charge-off ratio | 0.10 | 0.22 | 0.20 | N/A | N/A | N/A | |||||||||||||||||
NPA ratio | 0.37 | 0.42 | 0.44 | N/A | N/A | N/A | |||||||||||||||||
“The successful integration of Florida Community Bank (FCB), broad-based growth across multiple business lines throughout our five-state footprint, and continued strength in credit quality highlight our accomplishments in 2019,” said Kessel D. Stelling, Synovus Chairman and CEO. “In addition, strong growth in fee-based revenue reflects our success in attracting and retaining top talent and expanding customer relationships. We enter 2020 with considerable momentum, focused on expanding revenue sources and improving efficiencies that strengthen our company and create long-term shareholder value.”
Balance Sheet
Loans** | |||||||||||||||||||||||||
(dollars in millions) | 4Q19 | 3Q19 | Linked
| Linked
| 4Q18 | Year/Year
| Year/Year %
| ||||||||||||||||||
Commercial & industrial | $ | 16,782.7 | $ | 16,418.3 | $ | 364.4 | 8.8 | % | $ | 12,781.2 | $ | 4,001.5 | 31.3 | % | |||||||||||
Commercial real estate | 10,480.5 | 10,313.0 | 167.5 | 6.4 | 6,564.5 | 3,916.0 | 59.7 | ||||||||||||||||||
Consumer | 9,924.7 | 9,709.2 | 215.5 | 8.8 | 6,625.0 | 3,299.6 | 49.8 | ||||||||||||||||||
Unearned income | (25.4 | ) | (22.7 | ) | (2.7 | ) | 47.2 | (24.1 | ) | (1.2 | ) | 5.1 | |||||||||||||
Total loans | $ | 37,162.5 | $ | 36,417.8 | $ | 744.6 | 8.1 | % | $ | 25,946.6 | $ | 11,215.9 | 43.2 | % | |||||||||||
* Annualized | |||||||||||||||||||||||||
** Amounts may not total due to rounding | |||||||||||||||||||||||||
- Total funded loan production in the quarter was approximately $3.55 billion.
- Commercial and industrial loans increased $364.4 million, or 8.8%, from the prior quarter, with broad-based growth across industries and geographies.
- Consumer loans grew $215.5 million, or 8.8%, from the third quarter 2019, with increases in all four categories.
- Commercial real estate loans increased by $167.5 million, or 6.4%, from the prior quarter, with growth in 7 of 10 asset classes.
Deposits** | |||||||||||||||||||||||||
(dollars in millions) | 4Q19 | 3Q19 | Linked
| Linked
| 4Q18 | Year/Year
| Year/Year
| ||||||||||||||||||
Non-interest-bearing DDA | $ | 8,661.2 | $ | 8,970.2 | $ | (309.0 | ) | (13.7 | )% | $ | 6,926.5 | $ | 1,734.7 | 25.0 | % | ||||||||||
Interest-bearing DDA | 4,769.5 | 4,714.8 | 54.7 | 4.6 | 3,690.7 | 1,078.8 | 29.2 | ||||||||||||||||||
Money market | 9,827.4 | 9,212.1 | 615.2 | 26.5 | 7,681.8 | 2,145.5 | 27.9 | ||||||||||||||||||
Savings | 909.5 | 897.3 | 12.2 | 5.4 | 812.5 | 97.0 | 11.9 | ||||||||||||||||||
Public funds | 4,622.3 | 3,795.3 | 827.0 | 86.4 | 2,374.9 | 2,247.4 | 94.6 | ||||||||||||||||||
Time deposits | 6,185.6 | 6,647.8 | (462.2 | ) | (27.6 | ) | 3,685.9 | 2,499.7 | 67.8 | ||||||||||||||||
Brokered deposits | 3,430.0 | 3,195.5 | 234.5 | 29.1 | 1,548.0 | 1,882.0 | 121.6 | ||||||||||||||||||
Total deposits | $ | 38,405.5 | $ | 37,433.1 | $ | 972.4 | 10.3 | % | $ | 26,720.3 | $ | 11,685.2 | 43.7 | % | |||||||||||
* Annualized | |||||||||||||||||||||||||
** Amounts may not total due to rounding | |||||||||||||||||||||||||
- Deposit costs improved in the quarter, as intentional run-off of higher cost deposits were replaced with lower cost options.
- Total deposit costs declined 13 basis points from the third quarter and 18 basis points from the July 2019 peak.
- The loan to deposit ratio was 96.8% in the fourth quarter, compared to 97.3% in the third quarter 2019.
Income Statement Summary** | |||||||||||||||||||||||||
(in thousands, except per share data) | 4Q19 | 3Q19 | Linked
| Linked
| 4Q18 | Year/Year
| Year/Year
| ||||||||||||||||||
Net interest income | $ | 399,268 | $ | 402,097 | $ | (2,829 | ) | (0.7 | )% | $ | 297,933 | $ | 101,335 | 34.0 | % | ||||||||||
Non-interest income | 97,955 | 88,760 | 9,195 | 10.4 | % | 67,991 | 29,964 | 44.1 | |||||||||||||||||
Non-interest expense | 266,121 | 276,310 | (10,189 | ) | (3.7 | ) | 209,922 | 56,199 | 26.8 | ||||||||||||||||
Provision expense | 24,470 | 27,562 | (3,092 | ) | (11.2 | ) | 12,148 | 12,322 | 101.4 | ||||||||||||||||
Income before taxes | $ | 206,632 | $ | 186,985 | $ | 19,647 | 10.5 | % | $ | 143,854 | $ | 62,778 | 43.6 | % | |||||||||||
Income tax expense | 54,948 | 51,259 | 3,689 | 7.2 | 38,784 | 16,164 | 41.7 | ||||||||||||||||||
Preferred stock dividends | 8,291 | 8,291 | — | — | 3,151 | 5,140 | 163.1 | ||||||||||||||||||
Net income available to common shareholders | $ | 143,393 | $ | 127,435 | $ | 15,958 | 12.5 | % | $ | 101,919 | $ | 41,474 | 40.7 | % | |||||||||||
Weighted average common shares outstanding, diluted | 148,529 | 154,043 | (5,514 | ) | (3.6 | ) | 116,986 | 31,543 | 27.0 | % | |||||||||||||||
Diluted earnings per share | $ | 0.97 | $ | 0.83 | $ | 0.14 | 16.7 | % | $ | 0.87 | $ | 0.09 | 10.8 | ||||||||||||
Adjusted diluted earnings per share | $ | 0.94 | $ | 0.97 | $ | (0.03 | ) | (3.0 | )% | $ | 0.91 | $ | 0.03 | 3.1 | |||||||||||
** Amounts may not total due to rounding | |||||||||||||||||||||||||
Core Performance
- Total revenues were $498.0 million in the fourth quarter, up $6.3 million from the previous quarter.
- Net interest income decreased $2.8 million or 0.7% compared to the prior quarter.
-
Net interest margin was 3.65%, down 4 basis points from the previous quarter, and favorably impacted by $15.1 million of loan accretion and $11.0 million of deposit premium amortization.
- Excluding the impact of PAA, net interest margin was 3.40%, down 2 basis points from the prior quarter.
- The sequential decrease in net interest margin was driven by a decline of 18 basis points in total earning asset yields and a decrease of 14 basis points in the effective cost of funds.
-
Non-interest income increased $9.2 million, or 10.4% from the prior quarter, and increased $30.0 million, or 44.1%, compared to fourth quarter 2018.
- Sequential growth was led by capital markets fee income, fiduciary activities, and impacts from fair value adjustments.
- Assets under management of $17.0 billion increased 4.9% from the prior quarter and 21.2% from the fourth quarter 2018.
-
Non-interest expense decreased $10.2 million or 3.7% from the previous quarter. Adjusted non-interest expense increased $6.2 million or 2.4%, from the prior quarter.
- The increase in adjusted expenses included a $3 million increase in FDIC expense associated with a reclassification of certain loan categories over the past four years, higher salaries expense, higher commissions associated with increases in non-interest income, and higher servicing expense related to a renegotiated lending partnership contract that was more than offset with an increase in net interest income.
- Provision expense was $24.5 million, a $3.1 million decrease from the previous quarter, primarily resulting from lower charge-offs, which were 10 basis points.
- The effective tax rate was 26.6% for the quarter.
Capital Ratios | |||||||||
4Q19 | 3Q19 | 4Q18 | |||||||
Common equity Tier 1 capital (CET1) ratio | 8.95 | % | (1) | 8.96 | % | 9.95 | % | ||
Tier 1 capital ratio | 10.24 | (1) | 10.27 | 10.61 | |||||
Total risk-based capital ratio | 12.25 | (1) | 12.30 | 12.37 | |||||
Tier 1 leverage ratio | 9.16 | (1) | 9.02 | 9.60 | |||||
Tangible common equity ratio(2) | 8.08 | 8.04 | 8.81 | ||||||
(1) Ratios are preliminary | |||||||||
(2) Non-GAAP measure; see applicable reconciliation | |||||||||
Capital
- The Company repurchased $36.5 million in common stock (1.1 million shares) during the quarter. Year-to-date repurchases totaled $725 million, or 19.9 million shares. Share count has declined by 10.9% from January 1, 2019.
Fourth Quarter Earnings Conference Call
Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on January 24, 2020. 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 $48 billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services through 298 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 “Most Reputable Banks” by American Banker and the Reputation Institute. Synovus is on the web at synovus.com, and on Twitter, Facebook, LinkedIn, and Instagram.
Forward-Looking Statements
This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements through Synovus’ use of words such as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the future or otherwise regarding the outlook for Synovus’ future business and financial performance and/or the performance of the banking industry and economy in general. These forward-looking statements include, among others, our expectations regarding our future operating and financial performance, including our outlook and long-term goals for future growth; our expectations regarding net interest margin; expectations on our growth strategy, expense management, tax savings, strategic transactions, capital 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, 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 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 ratio; and common equity Tier 1 capital (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 expense; total revenues; efficiency ratio-FTE; 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 capital 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 is a measure used by management to evaluate total revenues exclusive of net investment securities gains (losses) and gains on sales 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 ratio and common equity Tier 1 capital (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) | 4Q19 | 3Q19 | 4Q18 | 2019 | 2018 | ||||||||||||||
Adjusted non-interest expense | |||||||||||||||||||
Total non-interest expense | $ | 266,121 | $ | 276,310 | $ | 209,922 | $ | 1,098,968 | $ | 829,455 | |||||||||
Subtract: Earnout liability adjustments | — | (10,457 | ) | — | (10,457 | ) | (11,652 | ) | |||||||||||
Add/subtract: Merger-related expense | 913 | (353 | ) | (3,381 | ) | (56,580 | ) | (10,065 | ) | ||||||||||
Subtract/add: Restructuring charges, net | (1,259 | ) | 66 | (140 | ) | (1,230 | ) | 51 | |||||||||||
Subtract: Valuation adjustment to Visa derivative | (1,111 | ) | (2,500 | ) | — | (3,611 | ) | (2,328 | ) | ||||||||||
Add: Litigation settlement/contingency expense | — | — | — | — | 4,026 | ||||||||||||||
Subtract: Loss on early extinguishment of debt, net | — | (4,592 | ) | — | (4,592 | ) | — | ||||||||||||
Adjusted non-interest expense | $ | 264,664 | $ | 258,474 | $ | 206,401 | $ | 1,022,498 | $ | 809,487 | |||||||||
Adjusted total revenues and adjusted tangible efficiency ratio | |||||||||||||||||||
Adjusted non-interest expense | $ | 264,664 | $ | 258,474 | $ | 206,401 | $ | 1,022,498 | $ | 809,487 | |||||||||
Subtract: Amortization of intangibles | (2,901 | ) | (2,901 | ) | (292 | ) | (11,603 | ) | (1,167 | ) | |||||||||
Adjusted tangible non-interest expense | $ | 261,763 | $ | 255,573 | $ | 206,109 | $ | 1,010,895 | $ | 808,320 | |||||||||
Net interest income | $ | 399,268 | $ | 402,097 | $ | 297,933 | $ | 1,595,803 | $ | 1,148,413 | |||||||||
Add: Tax equivalent adjustment | 769 | 819 | 181 | 3,025 | 553 | ||||||||||||||
Add: Total non-interest income | 97,955 | 88,760 | 67,991 | 355,900 | 280,093 | ||||||||||||||
Total FTE revenues | 497,992 | 491,676 | 366,105 | 1,954,728 | 1,429,059 | ||||||||||||||
Add: Investment securities losses, net | 2,157 | 3,731 | — | 7,659 | 1,296 | ||||||||||||||
Subtract/add: Gain on sale and fair value (increase) decrease of private equity investments | (8,100 | ) | (1,194 | ) | 2,084 | (11,607 | ) | 4,743 | |||||||||||
Adjusted total revenues | $ | 492,049 | $ | 494,213 | $ | 368,189 | $ | 1,950,780 | $ | 1,435,098 | |||||||||
Efficiency ratio-FTE | 53.44 | % | 56.20 | % | 57.34 | % | 56.22 | % | 58.04 | % | |||||||||
Adjusted tangible efficiency ratio | 53.20 | 51.71 | 55.98 | 51.82 | 56.33 | ||||||||||||||
Reconciliation of Non-GAAP Financial Measures, continued | |||||||||||||||||||
(in thousands, except per share data) | 4Q19 | 3Q19 | 4Q18 | 2019 | 2018 | ||||||||||||||
Adjusted Return on Average Assets | |||||||||||||||||||
Net income | $ | 151,684 | $ | 135,726 | $ | 105,070 | $ | 563,780 | $ | 428,476 | |||||||||
Add/subtract: Income tax expense (benefit), net related to State Tax Reform and SAB 118 | — | 4,402 | — | 4,402 | (9,148 | ) | |||||||||||||
Add: Earnout liability adjustments | — | 10,457 | — | 10,457 | 11,652 | ||||||||||||||
Subtract/add: Merger-related expense | (913 | ) | 353 | 3,381 | 56,580 | 10,065 | |||||||||||||
Add/subtract: Restructuring charges, net | 1,259 | (66 | ) | 140 | 1,230 | (51 | ) | ||||||||||||
Add: Valuation adjustment to Visa derivative | 1,111 | 2,500 | — | 3,611 | 2,328 | ||||||||||||||
Subtract: Litigation settlement/contingency expense | — | — | — | — | (4,026 | ) | |||||||||||||
Add: Loss on early extinguishment of debt, net | — | 4,592 | — | 4,592 | — | ||||||||||||||
Add: Investment securities losses, net | 2,157 | 3,731 | — | 7,659 | 1,296 | ||||||||||||||
Subtract/add: Gain on sale and fair value (increase) decrease of private equity investments | (8,100 | ) | (1,194 | ) | 2,084 | (11,607 | ) | 4,743 | |||||||||||
Add/subtract: Tax effect of adjustments | 1,162 | (2,478 | ) | (523 | ) | (9,343 | ) | (1,008 | ) | ||||||||||
Adjusted net income | $ | 148,360 | $ | 158,023 | $ | 110,152 | $ | 631,361 | $ | 444,327 | |||||||||
Net income annualized | $ | 601,790 | $ | 538,478 | $ | 416,854 | $ | 563,780 | $ | 428,476 | |||||||||
Adjusted net income annualized | $ | 588,602 | $ | 626,939 | $ | 437,016 | $ | 631,361 | $ | 444,327 | |||||||||
Total average assets | $ | 47,459,405 | $ | 47,211,026 | $ | 32,190,303 | $ | 46,791,930 | $ | 31,668,847 | |||||||||
Return on average assets | 1.27 | % | 1.14 | % | 1.29 | % | 1.20 | % | 1.35 | % | |||||||||
Adjusted return on average assets | 1.24 | 1.33 | 1.36 | 1.35 | 1.40 | ||||||||||||||
Adjusted net income available to common shareholders and adjusted net income per common share, diluted | |||||||||||||||||||
Net income available to common shareholders | $ | 143,393 | $ | 127,435 | $ | 101,919 | $ | 540,899 | $ | 410,478 | |||||||||
Add/subtract: Income tax expense (benefit), net related to State Tax Reform and SAB 118 | — | 4,402 | — | 4,402 | (9,148 | ) | |||||||||||||
Add: Earnout liability adjustments | — | 10,457 | — | 10,457 | 11,652 | ||||||||||||||
Add: Preferred stock redemption charge | — | — | — | — | 4,020 | ||||||||||||||
Subtract/Add: Merger-related expense | (913 | ) | 353 | 3,381 | 56,580 | 10,065 | |||||||||||||
Add/subtract: Restructuring charges, net | 1,259 | (66 | ) | 140 | 1,230 | (51 | ) | ||||||||||||
Add: Valuation adjustment to Visa derivative | 1,111 | 2,500 | — | 3,611 | 2,328 | ||||||||||||||
Subtract: Litigation settlement/contingency expense | — | — | — | — | (4,026 | ) | |||||||||||||
Add: Loss on early extinguishment of debt, net | — | 4,592 | — | 4,592 | — | ||||||||||||||
Add: Investment securities losses, net | 2,157 | 3,731 | — | 7,659 | 1,296 | ||||||||||||||
Subtract/add: Gain on sale and fair value (increase) decrease of private equity investments | (8,100 | ) | (1,194 | ) | 2,084 | (11,607 | ) | 4,743 | |||||||||||
Add/subtract: Tax effect of adjustments | 1,162 | (2,478 | ) | (523 | ) | (9,343 | ) | (1,008 | ) | ||||||||||
Adjusted net income available to common shareholders | $ | 140,069 | $ | 149,732 | $ | 107,001 | $ | 608,480 | $ | 430,349 | |||||||||
Weighted average common shares outstanding, diluted | 148,529 | 154,043 | 116,986 | 156,058 | 118,378 | ||||||||||||||
Net income per common share, diluted | $ | 0.97 | $ | 0.83 | $ | 0.87 | $ | 3.47 | $ | 3.47 | |||||||||
Adjusted net income per common share, diluted | 0.94 | 0.97 | 0.91 | 3.90 | 3.64 | ||||||||||||||
Reconciliation of Non-GAAP Financial Measures, continued | |||||||||||||||||||
(dollars in thousands) | 4Q19 | 3Q19 | 4Q18 | 2019 | 2018 | ||||||||||||||
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 | $ | 143,393 | $ | 127,435 | $ | 101,919 | $ | 540,899 | $ | 410,478 | |||||||||
Add/subtract: Income tax expense (benefit), net related to State Tax Reform and SAB 118 | — | 4,402 | — | 4,402 | (9,148 | ) | |||||||||||||
Add: Earnout liability adjustments | — | 10,457 | — | 10,457 | 11,652 | ||||||||||||||
Add: Preferred stock redemption charge | — | — | — | — | 4,020 | ||||||||||||||
Subtract/Add: Merger-related expense | (913 | ) | 353 | 3,381 | 56,580 | 10,065 | |||||||||||||
Add/subtract: Restructuring charges, net | 1,259 | (66 | ) | 140 | 1,230 | (51 | ) | ||||||||||||
Add: Valuation adjustment to Visa derivative | 1,111 | 2,500 | — | 3,611 | 2,328 | ||||||||||||||
Subtract: Litigation settlement/contingency expense | — | — | — | — | (4,026 | ) | |||||||||||||
Add: Loss on early extinguishment of debt, net | — | 4,592 | — | 4,592 | — | ||||||||||||||
Add: Investment securities losses, net | 2,157 | 3,731 | — | 7,659 | 1,296 | ||||||||||||||
Subtract/add: Gain on sale and fair value (increase) decrease of private equity investments | (8,100 | ) | (1,194 | ) | 2,084 | (11,607 | ) | 4,743 | |||||||||||
Add/subtract: Tax effect of adjustments | 1,162 | (2,478 | ) | (523 | ) | (9,343 | ) | (1,008 | ) | ||||||||||
Adjusted net income available to common shareholders | $ | 140,069 | $ | 149,732 | $ | 107,001 | $ | 608,480 | $ | 430,349 | |||||||||
Adjusted net income available to common shareholders annualized | $ | 555,709 | $ | 594,045 | $ | 424,515 | $ | 608,480 | $ | 430,349 | |||||||||
Add: Amortization of intangibles | 8,528 | 8,632 | 893 | 8,598 | 893 | ||||||||||||||
Adjusted net income available to common shareholders excluding amortization of intangibles annualized | $ | 564,237 | $ | 602,677 | $ | 425,408 | $ | 617,078 | $ | 431,242 | |||||||||
Net income available to common shareholders annualized | $ | 568,896 | $ | 505,585 | $ | 404,353 | $ | 540,899 | $ | 410,478 | |||||||||
Add: Amortization of intangibles | 8,528 | 8,632 | 893 | 8,598 | 893 | ||||||||||||||
Net income available to common shareholders excluding amortization of intangibles annualized | $ | 577,424 | $ | 514,217 | $ | 405,246 | $ | 549,497 | $ | 411,371 | |||||||||
Total average shareholders' equity less preferred stock | $ | 4,348,250 | $ | 4,450,301 | $ | 2,837,740 | $ | 4,384,458 | $ | 2,821,311 | |||||||||
Subtract: Goodwill | (488,223 | ) | (492,320 | ) | (57,315 | ) | (487,126 | ) | (57,315 | ) | |||||||||
Subtract: Other intangible assets, net | (57,149 | ) | (60,278 | ) | (9,972 | ) | (65,553 | ) | (10,424 | ) | |||||||||
Total average tangible shareholders' equity less preferred stock | $ | 3,802,878 | $ | 3,897,703 | $ | 2,770,453 | $ | 3,831,779 | $ | 2,753,572 | |||||||||
Return on average common equity | 13.08 | % | 11.36 | % | 14.25 | % | 12.34 | % | 14.55 | % | |||||||||
Adjusted return on average common equity | 12.78 | 13.35 | 14.96 | 13.88 | 15.25 | ||||||||||||||
Return on average tangible common equity | 15.18 | 13.19 | 14.63 | 14.34 | 14.94 | ||||||||||||||
Adjusted return on average tangible common equity | 14.84 | 15.46 | 15.36 | 16.10 | 15.66 | ||||||||||||||
Reconciliation of Non-GAAP Financial Measures, continued | |||||||||||
December 31, | September 30, | December 31, | |||||||||
(dollars in thousands) | 2019 | 2019 | 2018 | ||||||||
Tangible Common Equity Ratio | |||||||||||
Total assets | $ | 48,203,282 | $ | 47,661,182 | $ | 32,669,192 | |||||
Subtract: Goodwill | (497,267 | ) | (487,865 | ) | (57,315 | ) | |||||
Subtract: Other intangible assets, net | (55,671 | ) | (58,572 | ) | (9,875 | ) | |||||
Tangible assets | $ | 47,650,344 | $ | 47,114,745 | $ | 32,602,002 | |||||
Total shareholders’ equity | $ | 4,941,690 | $ | 4,868,838 | $ | 3,133,602 | |||||
Subtract: Goodwill | (497,267 | ) | (487,865 | ) | (57,315 | ) | |||||
Subtract: Other intangible assets, net | (55,671 | ) | (58,572 | ) | (9,875 | ) | |||||
Subtract: Preferred Stock, no par value | (537,145 | ) | (536,550 | ) | (195,140 | ) | |||||
Tangible common equity | $ | 3,851,607 | $ | 3,785,851 | $ | 2,871,272 | |||||
Total shareholders’ equity to total assets ratio | 10.25 | % | 10.22 | % | 9.59 | % | |||||
Tangible common equity ratio | 8.08 | 8.04 | 8.81 | ||||||||
Reconciliation of Non-GAAP Financial Measures, continued | |||
December 31, | |||
(dollars in thousands) | 2019 | ||
CET1 capital ratio (fully phased-in) | |||
CET1 capital | $ | 3,743,448 | |
Total risk-weighted assets | $ | 41,822,767 | |
Total risk-weighted assets (fully phased-in) | $ | 41,891,173 | |
CET1 capital ratio | 8.95 | % | |
CET1 capital ratio (fully phased-in) | 8.94 | ||
Synovus | |||||||||||
INCOME STATEMENT DATA | |||||||||||
(Unaudited) | Years Ended | ||||||||||
(Dollars in thousands, except per share data) | December 31, | ||||||||||
2019 | 2018 | % Change | |||||||||
Interest income | $ | 2,050,638 | $ | 1,344,305 | 52.5 | % | |||||
Interest expense | 454,835 | 195,892 | 132.2 | ||||||||
Net interest income | 1,595,803 | 1,148,413 | 39.0 | ||||||||
Provision for loan losses | 87,720 | 51,697 | 69.7 | ||||||||
Net interest income after provision for loan losses | 1,508,083 | 1,096,716 | 37.5 | ||||||||
Non-interest income: | |||||||||||
Service charges on deposit accounts | 88,190 | 80,840 | 9.1 | ||||||||
Fiduciary and asset management fees | 58,388 | 54,685 | 6.8 | ||||||||
Card fees | 45,659 | 42,503 | 7.4 | ||||||||
Brokerage revenue | 41,608 | 35,366 | 17.6 | ||||||||
Mortgage banking income | 32,599 | 18,958 | 72.0 | ||||||||
Capital markets income | 30,529 | 5,803 | 426.1 | ||||||||
Income from bank-owned life insurance | 21,226 | 15,403 | 37.8 | ||||||||
Investment securities losses, net | (7,659 | ) | (1,296 | ) | nm | ||||||
Gain on sale and fair value increase/(decrease) of private equity investments | 11,607 | (4,743 | ) | nm | |||||||
Other non-interest income | 33,753 | 32,574 | 3.6 | ||||||||
Total non-interest income | 355,900 | 280,093 | 27.1 | ||||||||
Non-interest expense: | |||||||||||
Salaries and other personnel expense | 570,036 | 453,420 | 25.7 | ||||||||
Net occupancy and equipment expense | 161,906 | 130,482 | 24.1 | ||||||||
Third-party processing and other services | 75,696 | 58,625 | 29.1 | ||||||||
Professional fees | 35,300 | 26,737 | 32.0 | ||||||||
FDIC insurance and other regulatory fees | 31,696 | 24,494 | 29.4 | ||||||||
Advertising expense | 21,371 | 20,881 | 2.3 | ||||||||
Amortization of intangibles | 11,603 | 1,167 | 894.3 | ||||||||
Merger-related expense | 56,580 | 10,065 | nm | ||||||||
Earnout liability adjustments | 10,457 | 11,652 | nm | ||||||||
Loss on early extinguishment of debt, net | 4,592 | — | nm | ||||||||
Valuation adjustment to Visa derivative | 3,611 | 2,328 | nm | ||||||||
Litigation settlement/contingency expense | — | (4,026 | ) | nm | |||||||
Restructuring charges, net | 1,230 | (51 | ) | nm | |||||||
Other operating expenses | 114,890 | 93,681 | 22.6 | ||||||||
Total non-interest expense | 1,098,968 | 829,455 | 32.5 | ||||||||
Income before income taxes | 765,015 | 547,354 | 39.8 | ||||||||
Income tax expense | 201,235 | 118,878 | 69.3 | ||||||||
Net income | 563,780 | 428,476 | 31.6 | ||||||||
Less: Preferred stock dividends and redemption charge | 22,881 | 17,998 | 27.1 | ||||||||
Net income available to common shareholders | $ | 540,899 | $ | 410,478 | 31.8 | % | |||||
Net income per common share, basic | $ | 3.50 | 3.49 | 0.4 | % | ||||||
Net income per common share, diluted | 3.47 | 3.47 | — | ||||||||
Cash dividends declared per common share | 1.20 | 1.00 | 20.0 | ||||||||
Return on average assets* | 1.20 | % | 1.35 | % | (15 | )bps | |||||
Return on average common equity* | 12.34 | 14.55 | (221 | ) | |||||||
Weighted average common shares outstanding, basic | 154,331 | 117,644 | 31.2 | % | |||||||
Weighted average common shares outstanding, diluted | 156,058 | 118,378 | 31.8 | ||||||||
nm - not meaningful | |||||||||||
bps - basis points | |||||||||||
* - ratios are annualized | |||||||||||
Synovus | ||||||||||||||||||
INCOME STATEMENT DATA | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
(Dollars in thousands, except per share data) | 2019 | 2018 |
Fourth
| |||||||||||||||
Fourth
|
Third
|
Second
| First Quarter |
Fourth
| '19 vs '18 | |||||||||||||
% Change | ||||||||||||||||||
Interest income | $ | 506,253 | 523,415 | 516,131 | 504,839 | 357,394 | 41.7 | % | ||||||||||
Interest expense | 106,985 | 121,318 | 118,869 | 107,664 | 59,461 | 79.9 | ||||||||||||
Net interest income | 399,268 | 402,097 | 397,262 | 397,175 | 297,933 | 34.0 | ||||||||||||
Provision for loan losses | 24,470 | 27,562 | 12,119 | 23,569 | 12,148 | 101.4 | ||||||||||||
Net interest income after provision for loan losses | 374,798 | 374,535 | 385,143 | 373,606 | 285,785 | 31.1 | ||||||||||||
Non-interest income: | ||||||||||||||||||
Service charges on deposit accounts | 22,385 | 22,952 | 21,994 | 20,859 | 20,320 | 10.2 | ||||||||||||
Fiduciary and asset management fees | 15,645 | 14,686 | 14,478 | 13,578 | 13,805 | 13.3 | ||||||||||||
Card fees | 11,325 | 12,297 | 11,161 | 10,877 | 10,862 | 4.3 | ||||||||||||
Brokerage revenue | 11,106 | 11,071 | 10,052 | 9,379 | 9,241 | 20.2 | ||||||||||||
Mortgage banking income | 9,287 | 10,351 | 7,907 | 5,054 | 3,781 | 145.6 | ||||||||||||
Capital markets income | 8,972 | 7,396 | 8,916 | 5,245 | 1,977 | 353.8 | ||||||||||||
Income from bank-owned life insurance | 5,620 | 5,139 | 5,176 | 5,290 | 3,682 | 52.6 | ||||||||||||
Investment securities (losses)/gains, net | (2,157 | ) | (3,731 | ) | (1,845 | ) | 75 | — | nm | |||||||||
Gain on sale and fair value increase/(decrease) of private equity investments | 8,100 | 1,194 | 1,455 | 858 | (2,084 | ) | nm | |||||||||||
Other non-interest income | 7,672 | 7,405 | 10,513 | 8,163 | 6,407 | 19.7 | ||||||||||||
Total non-interest income | 97,955 | 88,760 | 89,807 | 79,378 | 67,991 | 44.1 | ||||||||||||
Non-interest expense: | ||||||||||||||||||
Salaries and other personnel expense | 145,084 | 142,516 | 143,009 | 139,427 | 113,496 | 27.8 | ||||||||||||
Net occupancy and equipment expense | 42,644 | 41,017 | 39,851 | 38,394 | 34,260 | 24.5 | ||||||||||||
Third-party processing and other services | 20,293 | 18,528 | 19,118 | 17,758 | 14,803 | 37.1 | ||||||||||||
Professional Fees | 9,921 | 9,719 | 9,312 | 6,348 | 8,650 | 14.7 | ||||||||||||
FDIC insurance and other regulatory fees | 9,825 | 7,242 | 7,867 | 6,761 | 4,728 | 107.8 | ||||||||||||
Advertising expense | 4,375 | 5,950 | 5,923 | 5,123 | 6,834 | (36.0 | ) | |||||||||||
Amortization of intangibles | 2,901 | 2,901 | 2,410 | 3,392 | 292 | 893.5 | ||||||||||||
Merger-related expense | (913 | ) | 353 | 7,401 | 49,738 | 3,381 | nm | |||||||||||
Earnout liability adjustments | — | 10,457 | — | — | — | nm | ||||||||||||
Loss on early extinguishment of debt, net | — | 4,592 | — | — | — | nm | ||||||||||||
Valuation adjustment to Visa derivative | 1,111 | 2,500 | — | — | — | nm | ||||||||||||
Restructuring charges, net | 1,259 | (66 | ) | 18 | 19 | 140 | nm | |||||||||||
Other operating expenses | 29,621 | 30,601 | 29,217 | 25,450 | 23,338 | 26.9 | ||||||||||||
Total non-interest expense | 266,121 | 276,310 | 264,126 | 292,410 | 209,922 | 26.8 | ||||||||||||
Income before income taxes | 206,632 | 186,985 | 210,824 | 160,574 | 143,854 | 43.6 | ||||||||||||
Income tax expense | 54,948 | 51,259 | 54,640 | 40,388 | 38,784 | 41.7 | ||||||||||||
Net income | 151,684 | 135,726 | 156,184 | 120,186 | 105,070 | 44.4 | ||||||||||||
Less: Preferred stock dividends | 8,291 | 8,291 | 3,150 | 3,150 | 3,151 | 163.1 | ||||||||||||
Net income available to common shareholders | $ | 143,393 | 127,435 | 153,034 | 117,036 | 101,919 | 40.7 | % | ||||||||||
Net income per common share, basic | $ | 0.98 | 0.84 | 0.97 | 0.73 | 0.88 | 11.4 | % | ||||||||||
Net income per common share, diluted | 0.97 | 0.83 | 0.96 | 0.72 | 0.87 | 10.8 | ||||||||||||
Cash dividends declared per common share | 0.30 | 0.30 | 0.30 | 0.30 | 0.25 | 20.0 | ||||||||||||
Return on average assets * | 1.27 | % | 1.14 | 1.34 | 1.06 | 1.29 | (2 | )bps | ||||||||||
Return on average common equity * | 13.08 | 11.36 | 13.90 | 10.98 | 14.25 | (117 | ) | |||||||||||
Weighted average common shares outstanding, basic | 146,948 | 152,238 | 157,389 | 160,927 | 116,303 | 26.3 | % | |||||||||||
Weighted average common shares outstanding, diluted | 148,529 | 154,043 | 159,077 | 162,760 | 116,986 | 27.0 | ||||||||||||
nm - not meaningful | ||||||||||||||||||
bps - basis points | ||||||||||||||||||
* - ratios are annualized | ||||||||||||||||||
Synovus | ||||||||||||
BALANCE SHEET DATA | December 31, 2019 | September 30, 2019 | December 31, 2018 | |||||||||
(Unaudited) | ||||||||||||
(In thousands, except share data) | ||||||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 535,846 | $ | 611,496 | $ | 468,426 | ||||||
Interest-bearing funds with Federal Reserve Bank | 553,390 | 480,913 | 641,476 | |||||||||
Interest earning deposits with banks | 20,635 | 20,086 | 19,841 | |||||||||
Federal funds sold and securities purchased under resale agreements | 77,047 | 69,975 | 13,821 | |||||||||
Cash and cash equivalents | 1,186,918 | 1,182,470 | 1,143,564 | |||||||||
Investment securities available for sale, at fair value | 6,778,670 | 6,892,162 | 3,991,632 | |||||||||
Mortgage loans held for sale, at fair value | 115,173 | 129,415 | 37,129 | |||||||||
Loans | 37,162,450 | 36,417,826 | 25,946,573 | |||||||||
Allowance for loan losses | (281,402 | ) | (265,013 | ) | (250,555 | ) | ||||||
Loans, net | 36,881,048 | 36,152,813 | 25,696,018 | |||||||||
Cash surrender value of bank-owned life insurance | 775,665 | 771,458 | 554,134 | |||||||||
Premises and equipment, net | 493,940 | 487,053 | 434,307 | |||||||||
Goodwill | 497,267 | 487,865 | 57,315 | |||||||||
Other intangible assets | 55,671 | 58,572 | 9,875 | |||||||||
Other assets | 1,418,930 | 1,499,374 | 745,218 | |||||||||
Total assets | $ | 48,203,282 | $ | 47,661,182 | $ | 32,669,192 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits: | ||||||||||||
Non-interest-bearing deposits | $ | 9,439,485 | $ | 9,586,148 | $ | 7,650,967 | ||||||
Interest-bearing deposits | 28,966,019 | 27,846,922 | 19,069,355 | |||||||||
Total deposits | 38,405,504 | 37,433,070 | 26,720,322 | |||||||||
Federal funds purchased and securities sold under repurchase agreements | 165,690 | 197,419 | 237,692 | |||||||||
Other short-term borrowings | 1,753,560 | 2,233,593 | 650,000 | |||||||||
Long-term debt | 2,153,897 | 2,153,600 | 1,657,157 | |||||||||
Other liabilities | 782,941 | 774,662 | 270,419 | |||||||||
Total liabilities | 43,261,592 | 42,792,344 | 29,535,590 | |||||||||
Shareholders' equity: | ||||||||||||
Preferred Stock – no par value; authorized 100,000,000 shares; 22,000,000 issued and outstanding at December 31, 2019 and September 30, 2019, and 8,000,000 issued and outstanding at December 31, 2018 | 537,145 | 536,550 | 195,140 | |||||||||
Common stock – $1.00 par value. Authorized 342,857,143 shares; 166,800,623 issued at December 31, 2019, 166,201,048 issued at September 30, 2019, and 143,300,449 issued at December 31, 2018; 147,157,596 outstanding at December 31, 2019, 147,594,000 outstanding at September 30, 2019, and 115,865,510 outstanding at December 31, 2018 | 166,801 | 166,201 | 143,300 | |||||||||
Additional paid-in capital | 3,819,336 | 3,801,158 | 3,060,561 | |||||||||
Treasury stock, at cost – 19,643,027 shares at December 31, 2019, 18,607,048 shares at September 30, 2019, and 27,434,939 shares at December 31, 2018 | (715,560 | ) | (680,081 | ) | (1,014,746 | ) | ||||||
Accumulated other comprehensive income (loss), net | 65,641 | 75,933 | (94,420 | ) | ||||||||
Retained earnings | 1,068,327 | 969,077 | 843,767 | |||||||||
Total shareholders’ equity | 4,941,690 | 4,868,838 | 3,133,602 | |||||||||
Total liabilities and shareholders' equity | $ | 48,203,282 | $ | 47,661,182 | $ | 32,669,192 | ||||||
Synovus | |||||||||||||
AVERAGE BALANCES AND YIELDS/RATES (1) | |||||||||||||
(Unaudited) | |||||||||||||
(Dollars in thousands) | |||||||||||||
2019 | 2018 | ||||||||||||
Fourth | Third | Second | First | Fourth | |||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||
Interest Earning Assets | |||||||||||||
Investment securities (2) (4) | $ | 6,696,768 | 6,831,036 | 6,955,386 | 6,536,199 | 4,073,685 | |||||||
Yield | 3.12 | % | 3.14 | 3.03 | 3.06 | 2.45 | |||||||
Trading account assets (5) | $ | 7,986 | 5,519 | 4,853 | 2,049 | 7,493 | |||||||
Yield | 2.69 | % | 4.01 | 1.83 | 1.30 | 1.90 | |||||||
Commercial loans (3) (4) | $ | 26,698,202 | 26,568,194 | 26,353,973 | 26,140,672 | 19,150,252 | |||||||
Yield | 4.82 | % | 5.09 | 5.13 | 5.16 | 5.13 | |||||||
Consumer loans (3) | $ | 9,809,832 | 9,633,603 | 9,423,427 | 9,180,679 | 6,476,026 | |||||||
Yield | 5.07 | 5.08 | 5.17 | 5.10 | 4.85 | ||||||||
Allowance for loan losses | $ | (269,052 | ) | (258,024 | ) | (259,284 | ) | (252,815 | ) | (251,098 | ) | ||
Loans, net (3) | $ | 36,238,982 | 35,943,773 | 35,518,116 | 35,068,536 | 25,375,180 | |||||||
Yield | 4.93 | % | 5.13 | 5.17 | 5.17 | 5.11 | |||||||
Mortgage loans held for sale | $ | 117,909 | 99,556 | 70,497 | 34,913 | 36,477 | |||||||
Yield | 3.77 | % | 3.93 | 4.27 | 4.48 | 4.79 | |||||||
Federal funds sold, due from Federal Reserve Bank, and other short-term investments | $ | 514,635 | 513,160 | 511,488 | 679,477 | 641,832 | |||||||
Yield | 1.71 | % | 2.08 | 2.37 | 2.45 | 2.20 | |||||||
Federal Home Loan Bank and Federal Reserve Bank Stock (5) | $ | 278,586 | 254,994 | 234,949 | 211,408 | 162,369 | |||||||
Yield | 2.85 | % | 3.85 | 3.29 | 4.82 | 4.31 | |||||||
Total interest earning assets | $ | 43,854,866 | 43,648,038 | 43,295,289 | 42,532,582 | 30,297,036 | |||||||
Yield | 4.60 | % | 4.78 | 4.79 | 4.80 | 4.69 | |||||||
Interest-Bearing Liabilities | |||||||||||||
Interest-bearing demand deposits | $ | 6,381,282 | 6,138,810 | 6,335,953 | 6,393,304 | 4,692,804 | |||||||
Rate | 0.60 | % | 0.69 | 0.71 | 0.68 | 0.41 | |||||||
Money Market accounts | $ | 10,526,296 | 10,138,783 | 10,024,836 | 10,244,556 | 8,050,732 | |||||||
Rate | 1.13 | % | 1.26 | 1.23 | 1.18 | 0.89 | |||||||
Savings deposits | $ | 915,640 | 900,366 | 904,183 | 901,059 | 815,588 | |||||||
Rate | 0.05 | % | 0.05 | 0.05 | 0.06 | 0.04 | |||||||
Time deposits under $100,000 | $ | 1,873,350 | 2,100,492 | 2,245,878 | 2,238,568 | 1,242,811 | |||||||
Rate | 1.27 | % | 1.39 | 1.39 | 1.24 | 1.16 | |||||||
Time deposits over $100,000 | $ | 5,198,266 | 5,957,691 | 6,331,665 | 6,211,067 | 2,478,649 | |||||||
Rate | 1.51 | % | 1.69 | 1.70 | 1.60 | 1.67 | |||||||
Non-maturing brokered deposits | $ | 1,156,131 | 993,078 | 766,718 | 937,629 | 349,480 | |||||||
Rate | 1.84 | % | 2.47 | 2.46 | 2.60 | 2.46 | |||||||
Brokered time deposits | $ | 2,121,069 | 2,119,149 | 1,985,589 | 1,845,819 | 1,275,276 | |||||||
Rate | 2.16 | % | 2.27 | 2.28 | 2.13 | 2.03 | |||||||
Total interest-bearing deposits | $ | 28,172,034 | 28,348,369 | 28,594,822 | 28,772,002 | 18,905,340 | |||||||
Rate | 1.16 | % | 1.32 | 1.30 | 1.24 | 0.96 | |||||||
Federal funds purchased and securities sold under repurchase agreements | $ | 192,731 | 221,045 | 300,168 | 233,076 | 194,370 | |||||||
Rate | 0.24 | % | 0.22 | 0.20 | 0.22 | 0.18 | |||||||
Other short-term borrowings | $ | 1,565,507 | 1,307,370 | 1,090,581 | 517,456 | 112,228 | |||||||
Rate | 1.87 | % | 2.31 | 2.59 | 2.58 | 2.51 | |||||||
Long-term debt | $ | 2,153,983 | 2,286,221 | 2,114,819 | 1,983,910 | 1,657,022 | |||||||
Rate | 3.07 | % | 3.32 | 3.53 | 3.33 | 3.06 | |||||||
Total interest-bearing liabilities | $ | 32,084,255 | 32,163,005 | 32,100,390 | 31,506,444 | 20,868,960 | |||||||
Rate | 1.30 | % | 1.47 | 1.48 | 1.38 | 1.12 | |||||||
Non-interest-bearing demand deposits | $ | 9,706,784 | 9,365,776 | 9,304,839 | 9,054,949 | 8,014,761 | |||||||
Cost of funds | 1.02 | % | 1.16 | 1.15 | 1.07 | 0.81 | |||||||
Net interest margin | 3.65 | % | 3.69 | 3.69 | 3.78 | 3.92 | |||||||
Taxable equivalent adjustment | $ | 769 | 819 | 811 | 630 | 181 | |||||||
(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
|
Total Acquired
| Total Loans (1) |
Linked
| Total Loans | Year/Year | ||||||||||||||||||||
Loan Type | December 31,
|
December 31,
|
December 31,
| September 30, 2019 | % Change (2) |
December 31,
| % Change | |||||||||||||||||||
Commercial, Financial, and Agricultural | $ | 10,252,859 | $ | 8,587,087 | $ | 1,665,772 | $ | 9,846,830 | 16.4 | % | $ | 7,449,698 | 37.6 | % | ||||||||||||
Owner-Occupied | 6,529,811 | 5,610,592 | 919,219 | 6,571,486 | (2.5 | ) | 5,331,508 | 22.5 | ||||||||||||||||||
Total Commercial & Industrial | 16,782,670 | 14,197,679 | 2,584,991 | 16,418,316 | 8.8 | 12,781,206 | 31.3 | |||||||||||||||||||
Multi-Family | 2,023,769 | 1,581,791 | 441,978 | 2,098,365 | (14.1 | ) | 1,208,033 | 67.5 | ||||||||||||||||||
Hotels | 1,284,291 | 784,594 | 499,697 | 1,267,790 | 5.2 | 704,319 | 82.3 | |||||||||||||||||||
Office Buildings | 2,255,308 | 1,578,445 | 676,863 | 2,161,258 | 17.3 | 1,451,048 | 55.4 | |||||||||||||||||||
Shopping Centers | 1,762,598 | 1,017,140 | 745,458 | 1,693,985 | 16.1 | 808,540 | 118.0 | |||||||||||||||||||
Warehouses | 713,602 | 610,929 | 102,673 | 683,662 | 17.4 | 627,353 | 13.7 | |||||||||||||||||||
Other Investment Property | 1,003,111 | 923,004 | 80,107 | 977,253 | 10.5 | 761,658 | 31.7 | |||||||||||||||||||
Total Investment Properties | 9,042,679 | 6,495,903 | 2,546,776 | 8,882,313 | 7.2 | 5,560,951 | 62.6 | |||||||||||||||||||
1-4 Family Construction | 284,594 | 173,570 | 111,024 | 288,897 | (5.9 | ) | 174,259 | 63.3 | ||||||||||||||||||
1-4 Family Investment Mortgage | 495,421 | 453,612 | 41,809 | 516,859 | (16.5 | ) | 505,611 | (2.0 | ) | |||||||||||||||||
Total 1-4 Family Properties | 780,015 | 627,182 | 152,833 | 805,756 | (12.7 | ) | 679,870 | 14.7 | ||||||||||||||||||
Commercial Development | 109,862 | 62,965 | 46,897 | 124,213 | (45.8 | ) | 60,675 | 81.1 | ||||||||||||||||||
Residential Development | 269,377 | 182,234 | 87,143 | 224,662 | 79.0 | 93,166 | 189.1 | |||||||||||||||||||
Land Acquisition | 278,551 | 216,492 | 62,059 | 276,045 | 3.6 | 169,829 | 64.0 | |||||||||||||||||||
Land and Development | 657,790 | 461,691 | 196,099 | 624,920 | 20.9 | 323,670 | 103.2 | |||||||||||||||||||
Total Commercial Real Estate | 10,480,484 | 7,584,776 | 2,895,708 | 10,312,989 | 6.4 | 6,564,491 | 59.7 | |||||||||||||||||||
Consumer Mortgages | 5,546,368 | 3,629,633 | 1,916,735 | 5,470,730 | 5.5 | 2,934,235 | 89.0 | |||||||||||||||||||
Home Equity Lines | 1,713,157 | 1,655,096 | 58,061 | 1,675,092 | 9.0 | 1,515,796 | 13.0 | |||||||||||||||||||
Credit Cards | 268,841 | 268,841 | — | 267,874 | 1.4 | 258,245 | 4.1 | |||||||||||||||||||
Other Consumer Loans | 2,396,294 | 2,387,749 | 8,545 | 2,295,486 | 17.4 | 1,916,743 | 25.0 | |||||||||||||||||||
Total Consumer | 9,924,660 | 7,941,319 | 1,983,341 | 9,709,182 | 8.8 | 6,625,019 | 49.8 | |||||||||||||||||||
Unearned Income | (25,364 | ) | (25,364 | ) | — | (22,661 | ) | 47.3 | (24,143 | ) | 5.1 | |||||||||||||||
Total | $ | 37,162,450 | $ | 29,698,410 | $ | 7,464,040 | $ | 36,417,826 | 8.1 | % | $ | 25,946,573 | 43.2 | % | ||||||||||||
(1) On 1/1/19 $9.29 B of loans (at fair value) were acquired from FCB. The amounts presented in these columns are net of paydowns and payoffs since acquisition date. | ||||||||||||||||||||||||||
(2) Percentage change is annualized. | ||||||||||||||||||||||||||
NON-PERFORMING LOANS COMPOSITION (1) | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
(Dollars in thousands) | Total
|
Total Originated
|
Total Acquired
| Total
Non-performing
|
Linked
|
Total
| Year/Year | |||||||||||||||||||
Loan Type | December 31,
|
December 31,
|
December 31,
| September 30, 2019 | % Change |
December 31,
| % Change | |||||||||||||||||||
Commercial, Financial, and Agricultural | $ | 56,186 | $ | 54,483 | $ | 1,703 | $ | 73,672 | (23.7 | )% | $ | 69,295 | (18.9 | )% | ||||||||||||
Owner-Occupied | 9,780 | 9,780 | — | 9,222 | 6.1 | 8,971 | 9.0 | |||||||||||||||||||
Total Commercial & Industrial | 65,966 | 64,263 | 1,703 | 82,894 | (20.4 | ) | 78,266 | (15.7 | ) | |||||||||||||||||
Multi-Family | 385 | — | 385 | — | nm | 237 | 62.4 | |||||||||||||||||||
Office Buildings | 600 | 542 | 58 | 290 | 106.9 | 165 | 263.6 | |||||||||||||||||||
Shopping Centers | 718 | 718 | — | 140 | 412.9 | 89 | 706.7 | |||||||||||||||||||
Other Investment Property | 321 | 321 | — | — | nm | 1,890 | (83.0 | ) | ||||||||||||||||||
Total Investment Properties | 2,024 | 1,581 | 443 | 430 | 370.7 | 2,381 | (15.0 | ) | ||||||||||||||||||
1-4 Family Construction | 698 | 698 | — | 698 | — | — | nm | |||||||||||||||||||
1-4 Family Investment Mortgage | 1,555 | 1,555 | — | 1,520 | 2.3 | 2,381 | (34.7 | ) | ||||||||||||||||||
Total 1-4 Family Properties | 2,253 | 2,253 | — | 2,218 | 1.6 | 2,381 | (5.4 | ) | ||||||||||||||||||
Commercial Development | 87 | 87 | — | 87 | — | 93 | (6.5 | ) | ||||||||||||||||||
Residential Development | 395 | 395 | — | 1,526 | (74.1 | ) | 1,444 | (72.6 | ) | |||||||||||||||||
Land Acquisition | 628 | 628 | — | 1,419 | (55.7 | ) | 1,416 | (55.6 | ) | |||||||||||||||||
Land and Development | 1,110 | 1,110 | — | 3,032 | (63.4 | ) | 2,953 | (62.4 | ) | |||||||||||||||||
Total Commercial Real Estate | 5,387 | 4,944 | 443 | 5,680 | (5.2 | ) | 7,715 | (30.2 | ) | |||||||||||||||||
Consumer Mortgages | 12,545 | 11,808 | 737 | 10,015 | 25.3 | 4,949 | 153.5 | |||||||||||||||||||
Home Equity Lines | 12,034 | 12,034 | — | 12,590 | (4.4 | ) | 12,114 | (0.7 | ) | |||||||||||||||||
Other Consumer Loans | 5,704 | 5,704 | — | 4,736 | 20.4 | 3,689 | 54.6 | |||||||||||||||||||
Total Consumer | 30,283 | 29,546 | 737 | 27,341 | 10.8 | 20,752 | 45.9 | |||||||||||||||||||
Total | $ | 101,636 | $ | 98,753 | $ | 2,883 | $ | 115,915 | (12.3 | )% | $ | 106,733 | (4.8 | )% | ||||||||||||
(1) For purposes of this table, 2019 non-performing loans exclude acquired loans accounted for under ASC 310-30 that are currently accruing income. | ||||||||||||||||||||||||||
(2) Represents loans acquired from FCB and designated as non-accrual, net of payments and dispositions since acquisition date | ||||||||||||||||||||||||||
(3) September 30, 2019 total non-performing loans included $8.8 million of acquired non-performing loans, net of payments and dispositions since acquisition date. | ||||||||||||||||||||||||||
Synovus | |||||||||||||||||||
CREDIT QUALITY DATA | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(Dollars in thousands) | 2019 | 2018 | Fourth Quarter | ||||||||||||||||
Fourth | Third | Second | First | Fourth | '19 vs '18 | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | % Change | ||||||||||||||
Non-performing Loans (1) | $ | 101,636 | 115,915 | 124,083 | 143,976 | 106,733 | (4.8 | )% | |||||||||||
Other Real Estate and Other Assets | 35,810 | 35,400 | 15,479 | 11,341 | 7,726 | 363.5 | % | ||||||||||||
Non-performing Assets (1) | 137,446 | 151,315 | 139,562 | 155,317 | 114,459 | 20.1 | |||||||||||||
Allowance for Loan Losses | 281,402 | 265,013 | 257,376 | 257,036 | 250,555 | 12.3 | |||||||||||||
Net Charge-Offs - Quarter | 8,821 | 19,924 | 11,778 | 17,088 | 13,044 | ||||||||||||||
Net Charge-Offs - YTD | 57,612 | 48,791 | 28,867 | 17,088 | 50,410 | ||||||||||||||
Net Charge-Offs / Average Loans - Quarter (2) | 0.10 | % | 0.22 | 0.13 | 0.19 | 0.20 | |||||||||||||
Net Charge-Offs / Average Loans - YTD (2) | 0.16 | 0.18 | 0.16 | 0.19 | 0.20 | ||||||||||||||
Non-performing Loans / Loans (1) | 0.27 | 0.32 | 0.34 | 0.40 | 0.41 | ||||||||||||||
Non-performing Assets / Loans, ORE and specific other assets (1) | 0.37 | 0.42 | 0.39 | 0.44 | 0.44 | ||||||||||||||
Allowance / Loans | 0.76 | 0.73 | 0.71 | 0.72 | 0.97 | ||||||||||||||
Allowance / Non-performing Loans (1) | 276.87 | 228.63 | 207.42 | 178.53 | 234.75 | ||||||||||||||
Allowance / Non-performing Loans excluding impaired and acquired loans with no reserve (1) | 361.20 | 363.63 | 282.51 | 291.62 | 297.68 | ||||||||||||||
Past Due Loans over 90 days and Still Accruing (1) | $ | 15,943 | 15,660 | 5,851 | 4,486 | 3,798 | 319.8 | ||||||||||||
As a Percentage of Loans Outstanding | 0.04 | % | 0.04 | 0.02 | 0.01 | 0.01 | |||||||||||||
Total Past Due Loans and Still Accruing (1) | $ | 123,793 | 88,219 | 80,792 | 88,135 | 56,927 | 117.5 | ||||||||||||
As a Percentage of Loans Outstanding | 0.33 | % | 0.24 | 0.22 | 0.25 | 0.22 | |||||||||||||
Accruing Troubled Debt Restructurings (TDRs) | $ | 133,145 | 130,019 | 126,369 | 112,205 | 115,588 | 15.2 | ||||||||||||
(1) For purposes of this table, 2019 non-performing loans exclude acquired loans accounted for under ASC 310-30 that are currently accruing income. | |||||||||||||||||||
(2) Ratio is annualized. | |||||||||||||||||||
SELECTED CAPITAL INFORMATION (1) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
December 31,
|
September 30,
|
December 31,
| |||||||||||||||||
Tier 1 Capital | $ | 4,280,593 | 4,196.628 | 3,090,416 | |||||||||||||||
Total Risk-Based Capital | 5,123,371 | 5,023.138 | 3,601,376 | ||||||||||||||||
Common Equity Tier 1 Capital Ratio | 8.95 | % | 8.96 | 9.95 | |||||||||||||||
Common Equity Tier 1 Ratio (fully phased-in) (5) | 8.94 | 8.94 | 9.92 | ||||||||||||||||
Tier 1 Capital Ratio | 10.24 | 10.27 | 10.61 | ||||||||||||||||
Total Risk-Based Capital Ratio | 12.25 | 12.30 | 12.37 | ||||||||||||||||
Tier 1 Leverage Ratio | 9.16 | 9.02 | 9.60 | ||||||||||||||||
Common Equity as a Percentage of Total Assets (2) | 9.14 | 9.09 | 8.99 | ||||||||||||||||
Tangible Common Equity Ratio (3) (5) | 8.08 | 8.04 | 8.81 | ||||||||||||||||
Book Value Per Common Share (4) | $ | 29.93 | 29.35 | 25.36 | |||||||||||||||
Tangible Book Value Per Common Share (3) | 26.17 | 25.65 | 24.78 | ||||||||||||||||
(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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