Diluted earnings per share of $0.78 vs.
$1.32 in 1Q23
Adjusted diluted earnings per share of $0.79
vs. $1.33 in 1Q23
$12.8 million FDIC Special Assessment
reduced 1Q24 reported and adjusted EPS by $0.07
Synovus Financial Corp. (NYSE: SNV) today reported financial
results for the quarter ended March 31, 2024.
“Our first quarter results demonstrate tangible progress on our
strategic priorities, including key commercial category loan and
core deposit growth, client non-interest revenue growth and
excellent operating expense control. We remain focused on raising
the bar on service and deepening client relationships, all while
building a more risk-resilient bank, which was evidenced by our
highest common equity tier 1 capital ratios in several years and an
over 30% decline in wholesale funding versus last year," said
Synovus Chairman, CEO and President Kevin Blair.
First Quarter 2024 Highlights
- Net income available to common shareholders was $114.8 million,
or $0.78 per diluted share, compared to $60.6 million or $0.41 in
the fourth quarter 2023 and $193.9 million or $1.32 in first
quarter 2023.
- An incremental $12.8 million FDIC Special Assessment reduced
first quarter 2024 reported and adjusted EPS by $0.07. A $51.0
million FDIC Special Assessment impacted fourth quarter 2023
reported and adjusted EPS by $0.26.
- Pre-provision net revenue of $215.0 million increased $79.2
million, or 58%, sequentially and was down $77.0 million, or 26%,
compared to first quarter 2023.
- Net interest income declined $18.4 million, or 4%, compared to
the prior quarter and was down $61.9 million, or 13%, compared to
first quarter 2023, primarily attributable to a decline in average
earnings assets and higher funding costs. Net interest margin was
3.04% which compressed from the fourth quarter 2023 as higher
deposit costs more than offset an increase in earning asset
yields.
- Period-end loans declined $94.6 million from the fourth quarter
2023 as core commercial lending growth was more than offset by soft
loan demand, higher loan paydowns and strategic declines in certain
loan categories such as non-relationship syndicated lending and
third-party consumer lending. Commercial and industrial loans
increased $132.8 million or 1% from the prior quarter and $131.1
million or 1% from first quarter 2023.
- Period-end core deposits ended the quarter at $44.9 billion, an
increase of $165.1 million sequentially primarily as a result of
time deposit growth, partially offset by a decline in non-interest
bearing deposits. Total deposit costs increased 17 basis points
from the fourth quarter 2023 to 2.67%.
- Non-interest revenue of $118.9 million increased $67.4 million,
or 131%, sequentially and declined $14.2 million, or 11%, compared
to first quarter 2023. Adjusted non-interest revenue of $116.6
million fell $9.6 million, or 8%, sequentially and declined $1.0
million, or 1%, compared to the first quarter 2023. Year-over-year
pressure was the result of the consumer checking program changes
and GLOBALT divestiture in 2023. The company experienced
year-over-year growth in core banking fees and commercial
sponsorship income.
- On a sequential basis, non-interest expense of $322.7 million
declined 9% while adjusted non-interest expense declined 10% to
$318.9 million. Compared to the prior year, non-interest expense
and adjusted non-interest expense was flat and increased 5%,
respectively. All comparisons were significantly impacted by the
FDIC Special Assessments in fourth quarter 2023 and first quarter
2024. Headcount declined 1% sequentially and 7% year over year.
Excluding the first quarter 2024 FDIC Special Assessment, adjusted
non-interest expense was relatively stable compared to first
quarter 2023.
- Provision for credit losses of $54.0 million increased 19%
sequentially and compares to $32.2 million in first quarter 2023.
The allowance for credit losses ratio (to loans) of 1.26% was up 2
basis points from the fourth quarter 2023.
- The non-performing loan and asset ratios were slightly higher
at 0.81% and 0.86%, respectively; the net charge-off ratio for the
quarter was 0.41%, and total past dues were 0.13% of total loans
outstanding. Approximately 0.17% of first quarter 2024 net
charge-offs were attributable to an $18 million loss from a
commercial and industrial loan relationship that is expected to be
resolved later this month.
- The preliminary CET1 ratio rose sequentially to 10.38% as core
earnings accretion more than offset the impact of $29.9 million in
common stock repurchases during the first quarter 2024.
First Quarter Summary
Reported
Adjusted
(dollars in thousands)
1Q24
4Q23
1Q23
1Q24
4Q23
1Q23
Net income available to common
shareholders
$
114,822
$
60,645
$
193,868
$
115,973
$
116,901
$
195,276
Diluted earnings per share
0.78
0.41
1.32
0.79
0.80
1.33
Total revenue
537,734
488,682
613,877
536,745
564,593
599,469
Total loans
43,309,877
43,404,490
44,044,939
N/A
N/A
N/A
Total deposits
50,580,242
50,739,185
49,953,936
N/A
N/A
N/A
Return on avg assets
0.85
%
0.47
%
1.36
%
0.85
%
0.84
%
1.37
%
Return on avg common equity
10.2
5.9
19.2
10.3
11.3
19.4
Return on avg tangible common equity
11.7
7.0
21.9
11.8
13.3
22.1
Net interest margin
3.04
%
3.11
%
3.43
%
N/A
N/A
N/A
Efficiency ratio-TE(1)(2)
59.87
72.03
52.33
58.88
61.97
50.48
NCO ratio-QTD
0.41
0.38
0.17
N/A
N/A
N/A
NPA ratio
0.86
0.66
0.41
N/A
N/A
N/A
(1) Taxable equivalent
(2) Adjusted tangible efficiency ratio
N/A - not applicable
Balance Sheet
Loans*
(dollars in millions)
1Q24
4Q23
Linked Quarter Change
Linked Quarter %
Change
1Q23
Year/Year Change
Year/Year % Change
Commercial & industrial
$
22,731.3
$
22,598.5
$
132.8
1
%
$
22,600.2
$
131.1
1
%
Commercial real estate
12,194.0
12,316.8
(122.7
)
(1
)
12,996.8
(802.7
)
(6
)
Consumer
8,384.6
8,489.2
(104.7
)
(1
)
8,448.0
(63.4
)
(1
)
Total loans
$
43,309.9
$
43,404.5
$
(94.6
)
—
%
$
44,044.9
$
(735.0
)
(2
)%
*Amounts may not total due to rounding
Deposits*
(dollars in millions)
1Q24
4Q23
Linked Quarter Change
Linked Quarter %
Change
1Q23
Year/Year Change
Year/Year % Change
Non-interest-bearing DDA
$
11,515.4
$
11,801.2
$
(285.8
)
(2
)%
$
13,827.6
$
(2,312.2
)
(17
)%
Interest-bearing DDA
6,478.8
6,541.0
(62.1
)
(1
)
5,837.0
641.8
11
Money market
10,712.7
10,819.7
(107.0
)
(1
)
11,780.0
(1,067.2
)
(9
)
Savings
1,045.1
1,062.6
(17.5
)
(2
)
1,312.7
(267.6
)
(20
)
Public funds
7,270.4
7,349.5
(79.1
)
(1
)
6,888.2
382.2
6
Time deposits
7,838.9
7,122.2
716.7
10
4,060.3
3,778.6
93
Brokered deposits
5,718.9
6,043.0
(324.1
)
(5
)
6,248.3
(529.3
)
(8
)
Total deposits
$
50,580.2
$
50,739.2
$
(158.9
)
—
%
$
49,953.9
$
626.3
1
%
*Amounts may not total due to rounding
Income Statement Summary**
(in thousands, except per share data)
1Q24
4Q23
Linked Quarter Change
Linked Quarter %
Change
1Q23
Year/Year Change
Year/Year % Change
Net interest income
$
418,846
$
437,214
$
(18,368
)
(4
)%
$
480,751
$
(61,905
)
(13
)%
Non-interest revenue
118,888
51,468
67,420
131
133,126
(14,238
)
(11
)
Non-interest expense
322,741
352,858
(30,117
)
(9
)
321,852
889
—
Provision for (reversal of) credit
losses
53,980
45,472
8,508
19
32,154
21,826
68
Income before taxes
$
161,013
$
90,352
$
70,661
78
%
$
259,871
$
(98,858
)
(38
)%
Income tax expense
36,943
20,779
16,164
78
57,712
(20,769
)
(36
)
Net income
124,070
69,573
54,497
78
202,159
(78,089
)
(39
)
Less: Net income (loss) attributable to
noncontrolling interest
(437
)
(768
)
331
(43
)
—
(437
)
NM
Net income attributable to Synovus
Financial Corp.
124,507
70,341
54,166
77
202,159
(77,652
)
(38
)
Less: Preferred stock dividends
9,685
9,696
(11
)
—
8,291
1,394
17
Net income available to common
shareholders
$
114,822
$
60,645
$
54,177
89
%
$
193,868
$
(79,046
)
(41
)%
Weighted average common shares
outstanding, diluted
147,122
146,877
245
—
%
146,727
395
—
%
Diluted earnings per share
$
0.78
$
0.41
$
0.37
90
$
1.32
$
(0.54
)
(41
)
Adjusted diluted earnings per share
0.79
0.80
(0.01
)
(1
)
1.33
(0.54
)
(41
)
Effective tax rate
22.94
%
23.00
%
22.21
%
** Amounts may not total due to
rounding
NM - not meaningful
Capital Ratios
1Q24
4Q23
1Q23
Common equity Tier 1 capital (CET1)
ratio
10.38
%
*
10.22
%
9.77
%
Tier 1 capital ratio
11.44
*
11.28
10.81
Total risk-based capital ratio
13.31
*
13.07
12.72
Tier 1 leverage ratio
9.62
*
9.49
9.14
Tangible common equity ratio
6.67
6.84
6.12
* Ratios are preliminary.
First Quarter Earnings Conference Call
Synovus will host an earnings highlights conference call at 8:30
a.m. ET on April 18, 2024. The earnings call will be accompanied by
a slide presentation. Shareholders and other interested parties may
listen to this conference call via simultaneous internet broadcast.
For a link to the webcast, go to investor.synovus.com/event. The
replay will be archived for 12 months and will be available 30-45
minutes after the call.
Synovus Financial Corp. is a financial services company
based in Columbus, Georgia, with approximately $60 billion in
assets. Synovus provides commercial and consumer banking and a full
suite of specialized products and services, including private
banking, treasury management, wealth management, mortgage services,
premium finance, asset-based lending, structured lending, capital
markets and international banking. Synovus has 246 branches in
Georgia, Alabama, South Carolina, Florida and Tennessee. Synovus is
a Great Place to Work-Certified Company and is on the web at
synovus.com and on X, formerly known as Twitter, Facebook, LinkedIn
and Instagram.
Forward-Looking Statements
This press release and certain of our other filings with the
Securities and Exchange Commission contain statements that
constitute “forward-looking statements” within the meaning of, and
subject to the protections of, Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. All statements other than statements of
historical fact are forward-looking statements. You can identify
these forward-looking statements through Synovus’ use of words such
as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,”
“should,” “predicts,” “could,” “would,” “intends,” “targets,”
“estimates,” “projects,” “plans,” “potential” and other similar
words and expressions of the future or otherwise regarding the
outlook for Synovus’ future business and financial performance
and/or the performance of the banking industry and economy in
general. These forward-looking statements include, among others,
our expectations regarding our future operating and financial
performance; expectations on our growth strategy, expense and
revenue initiatives, capital management, balance sheet management,
and future profitability; expectations on credit quality and
performance; and the assumptions underlying our expectations.
Prospective investors are cautioned that any such forward-looking
statements are not guarantees of future performance and involve
known and unknown risks and uncertainties which may cause the
actual results, performance or achievements of Synovus to be
materially different from the future results, performance or
achievements expressed or implied by such forward-looking
statements. Forward-looking statements are based on the information
known to, and current beliefs and expectations of, Synovus’
management and are subject to significant risks and uncertainties.
Actual results may differ materially from those contemplated by
such forward-looking statements. A number of factors could cause
actual results to differ materially from those contemplated by the
forward-looking statements in this press release. Many of these
factors are beyond Synovus’ ability to control or predict.
These forward-looking statements are based upon information
presently known to Synovus’ management and are inherently
subjective, uncertain and subject to change due to any number of
risks and uncertainties, including, without limitation, the risks
and other factors set forth in Synovus’ filings with the Securities
and Exchange Commission, including its Annual Report on Form 10-K
for the year ended December 31, 2023, under the captions
“Cautionary Notice Regarding Forward-Looking Statements” and “Risk
Factors” and in Synovus’ quarterly reports on Form 10-Q and current
reports on Form 8-K. We believe these forward-looking statements
are reasonable; however, undue reliance should not be placed on any
forward-looking statements, which are based on current expectations
and speak only as of the date that they are made. We do not assume
any obligation to update any forward-looking statements as a result
of new information, future developments or otherwise, except as
otherwise may be required by law.
Non-GAAP Financial Measures
The measures entitled adjusted non-interest revenue,
non-interest expense; adjusted revenue; adjusted tangible
efficiency ratio; adjusted net income available to common
shareholders; adjusted diluted earnings per share; adjusted return
on average assets; adjusted return on average common equity; return
on average tangible common equity; adjusted return on average
tangible common equity; and tangible common equity ratio are not
measures recognized under GAAP and therefore are considered
non-GAAP financial measures. The most comparable GAAP measures to
these measures are total non-interest revenue; total non-interest
expense; total revenue; efficiency ratio-TE; net income available
to common shareholders; diluted earnings per share; return on
average assets; return on average common equity; and the ratio of
total Synovus Financial Corp. shareholders' equity to total assets,
respectively.
Management believes that these non-GAAP financial measures
provide meaningful additional information about Synovus to assist
management and investors in evaluating Synovus’ operating results,
financial strength, the performance of its business, and the
strength of its capital position. However, these non-GAAP financial
measures have inherent limitations as analytical tools and should
not be considered in isolation or as a substitute for analyses of
operating results or capital position as reported under GAAP. The
non-GAAP financial measures should be considered as additional
views of the way our financial measures are affected by significant
items and other factors, and since they are not required to be
uniformly applied, they may not be comparable to other similarly
titled measures at other companies. Adjusted non-interest revenue
and adjusted revenue are measures used by management to evaluate
non-interest revenue and total revenue exclusive of fair value
adjustment on non-qualified deferred compensation and other items
not indicative of ongoing operations that could impact
period-to-period comparisons. Adjusted non-interest expense and the
adjusted tangible efficiency ratio are measures utilized by
management to measure the success of expense management initiatives
focused on reducing recurring controllable operating costs.
Adjusted net income available to common shareholders, adjusted
diluted earnings per share, adjusted return on average assets, and
adjusted return on average common equity are measures used by
management to evaluate operating results exclusive of items that
are not indicative of ongoing operations and impact
period-to-period comparisons. Return on average tangible common
equity and adjusted return on average tangible common equity are
measures used by management to compare Synovus’ performance with
other financial institutions because it calculates the return
available to common shareholders without the impact of intangible
assets and their related amortization, thereby allowing management
to evaluate the performance of the business consistently. The
tangible common equity ratio is used by management to assess the
strength of our capital position. The computations of these
measures are set forth in the tables below.
Reconciliation of Non-GAAP Financial
Measures
(dollars in thousands)
1Q24
4Q23
1Q23
Adjusted non-interest revenue
Total non-interest revenue
$
118,888
$
51,468
$
133,126
Investment securities (gains) losses,
net
—
77,748
(1,030
)
Recovery of NPA
—
—
(13,126
)
Fair value adjustment on non-qualified
deferred compensation
(2,299
)
(3,053
)
(1,371
)
Adjusted non-interest revenue
$
116,589
$
126,163
$
117,599
Adjusted non-interest expense
Total non-interest expense
$
322,741
$
352,858
$
321,852
(Loss) gain on other loans held for
sale
—
—
(16,750
)
Gain (loss) on early extinguishment of
debt
—
4,497
—
Restructuring (charges) reversals
(1,524
)
(1,231
)
733
Fair value adjustment on non-qualified
deferred compensation
(2,299
)
(3,053
)
(1,371
)
Adjusted non-interest expense
$
318,918
$
353,071
$
304,464
Reconciliation of Non-GAAP Financial
Measures, continued
(dollars in thousands)
1Q24
4Q23
1Q23
Adjusted revenue and tangible
efficiency ratio
Adjusted non-interest expense
$
318,918
$
353,071
$
304,464
Amortization of intangibles
(2,907
)
(3,168
)
(1,857
)
Adjusted tangible non-interest expense
$
316,011
$
349,903
$
302,607
Net interest income
$
418,846
$
437,214
$
480,751
Total non-interest revenue
118,888
51,468
133,126
Total revenue
$
537,734
$
488,682
$
613,877
Tax equivalent adjustment
1,310
1,216
1,119
Total TE revenue
539,044
489,898
614,996
Recovery of NPA
—
—
(13,126
)
Investment securities losses (gains),
net
—
77,748
(1,030
)
Fair value adjustment on non-qualified
deferred compensation
(2,299
)
(3,053
)
(1,371
)
Adjusted revenue
$
536,745
$
564,593
$
599,469
Efficiency ratio-TE
59.87
%
72.03
%
52.33
%
Adjusted tangible efficiency ratio
58.88
61.97
50.48
Adjusted return on average
assets
Net income
$
124,070
$
69,573
$
202,159
Recovery of NPA
—
—
(13,126
)
Loss (gain) on other loans held for
sale
—
—
16,750
(Gain) loss on early extinguishment of
debt
—
(4,497
)
—
Restructuring charges (reversals)
1,524
1,231
(733
)
Investment securities losses (gains),
net
—
77,748
(1,030
)
Tax effect of adjustments(1)
(373
)
(18,226
)
(453
)
Adjusted net income
$
125,221
$
125,829
$
203,567
Net income annualized
$
499,007
$
276,023
$
819,867
Adjusted net income annualized
$
503,636
$
499,213
$
825,577
Total average assets
$
59,022,231
$
59,164,065
$
60,133,561
Return on average assets
0.85
%
0.47
%
1.36
%
Adjusted return on average assets
0.85
0.84
1.37
Adjusted net income available to common
shareholders and adjusted diluted earnings per share
Net income available to common
shareholders
$
114,822
$
60,645
$
193,868
Recovery of NPA
—
—
(13,126
)
Loss (gain) on other loans held for
sale
—
—
16,750
(Gain) loss on early extinguishment of
debt
—
(4,497
)
—
Restructuring charges (reversals)
1,524
1,231
(733
)
Investment securities losses (gains),
net
—
77,748
(1,030
)
Tax effect of adjustments(1)
(373
)
(18,226
)
(453
)
Adjusted net income available to common
shareholders
$
115,973
$
116,901
$
195,276
Weighted average common shares
outstanding, diluted
147,122
146,877
146,727
Diluted earnings per share
$
0.78
$
0.41
$
1.32
Adjusted diluted earnings per share
0.79
0.80
1.33
(1) An assumed marginal tax rate of 24.5%
for 1Q24 and 4Q23 and 24.3% for 1Q23 was applied.
Reconciliation of Non-GAAP Financial
Measures, continued
(dollars in thousands)
1Q24
4Q23
1Q23
Adjusted return on average common
equity, return on average tangible common equity, and adjusted
return on average tangible common equity
Net income available to common
shareholders
$
114,822
$
60,645
$
193,868
Recovery of NPA
—
—
(13,126
)
Loss (gain) on other loans held for
sale
—
—
16,750
(Gain) loss on early extinguishment of
debt
—
(4,497
)
—
Restructuring charges (reversals)
1,524
1,231
(733
)
Investment securities losses (gains),
net
—
77,748
(1,030
)
Tax effect of adjustments(1)
(373
)
(18,226
)
(453
)
Adjusted net income available to common
shareholders
$
115,973
$
116,901
$
195,276
Adjusted net income available to common
shareholders annualized
$
466,441
$
463,792
$
791,953
Amortization of intangibles, tax effected,
annualized
8,831
9,493
5,699
Adjusted net income available to common
shareholders excluding amortization of intangibles annualized
$
475,272
$
473,285
$
797,652
Net income available to common
shareholders annualized
$
461,812
$
240,602
$
786,242
Amortization of intangibles, tax effected,
annualized
8,831
9,493
5,699
Net income available to common
shareholders excluding amortization of intangibles annualized
$
470,643
$
250,095
$
791,941
Total average Synovus Financial Corp.
shareholders' equity less preferred stock
$
4,542,616
$
4,090,163
$
4,088,777
Average goodwill
(480,440
)
(479,858
)
(452,390
)
Average other intangible assets, net
(44,497
)
(47,502
)
(26,245
)
Total average Synovus Financial Corp.
tangible shareholders' equity less preferred stock
$
4,017,679
$
3,562,803
$
3,610,142
Return on average common equity
10.2
%
5.9
%
19.2
%
Adjusted return on average common
equity
10.3
11.3
19.4
Return on average tangible common
equity
11.7
7.0
21.9
Adjusted return on average tangible common
equity
11.8
13.3
22.1
(1) An assumed marginal tax rate of 24.5%
for 1Q24 and 4Q23 and 24.3% for 1Q23 was applied.
(dollars in thousands)
March 31, 2024
December 31, 2023
March 31, 2023
Tangible common equity ratio
Total assets
$
59,835,120
$
59,809,534
$
61,840,025
Goodwill
(480,440
)
(480,440
)
(452,390
)
Other intangible assets, net
(43,021
)
(45,928
)
(25,267
)
Tangible assets
$
59,311,659
$
59,283,166
$
61,362,368
Total Synovus Financial Corp.
shareholders’ equity
$
5,017,918
$
5,119,993
$
4,770,130
Goodwill
(480,440
)
(480,440
)
(452,390
)
Other intangible assets, net
(43,021
)
(45,928
)
(25,267
)
Preferred Stock, no par value
(537,145
)
(537,145
)
(537,145
)
Tangible common equity
$
3,957,312
$
4,056,480
$
3,755,328
Total Synovus Financial Corp.
shareholders’ equity to total assets ratio
8.39
%
8.56
%
7.71
%
Tangible common equity ratio
6.67
6.84
6.12
Amounts may not total due to rounding
Synovus
INCOME STATEMENT DATA
(Unaudited)
(Dollars in thousands, except per share
data)
2024
2023
First Quarter
First Quarter
Fourth Quarter
Third Quarter
Second Quarter
First Quarter
'24 vs '23
% Change
Interest income
$
782,710
788,297
786,039
759,143
716,879
9
%
Interest expense
363,864
351,083
342,880
303,612
236,128
54
Net interest income
418,846
437,214
443,159
455,531
480,751
(13
)
Provision for (reversal of) credit
losses
53,980
45,472
72,572
38,881
32,154
68
Net interest income after provision for
credit losses
364,866
391,742
370,587
416,650
448,597
(19
)
Non-interest revenue:
Service charges on deposit accounts
21,813
22,260
21,385
23,477
22,974
(5
)
Fiduciary and asset management fees
19,013
18,149
20,205
20,027
19,696
(3
)
Card fees
19,486
20,872
18,602
17,059
15,824
23
Brokerage revenue
22,707
21,961
21,387
22,451
24,204
(6
)
Mortgage banking income
3,418
3,019
3,671
4,609
3,858
(11
)
Capital markets income
6,627
6,456
7,980
9,482
15,127
(56
)
Income from bank-owned life insurance
7,347
10,324
6,965
6,878
7,262
1
Investment securities gains (losses),
net
—
(77,748
)
—
—
1,030
nm
Recovery of NPA
—
—
—
—
13,126
nm
Other non-interest revenue
18,477
26,175
6,944
8,293
10,025
84
Total non-interest revenue
118,888
51,468
107,139
112,276
133,126
(11
)
Non-interest expense:
Salaries and other personnel expense
188,521
176,712
179,741
183,001
188,924
—
Net occupancy, equipment, and software
expense
46,808
48,146
45,790
42,785
42,860
9
Third-party processing and other
services
20,258
21,717
21,439
21,659
21,833
(7
)
Professional fees
7,631
11,147
10,147
9,597
8,963
(15
)
FDIC insurance and other regulatory
fees
23,819
61,470
11,837
11,162
10,268
132
Restructuring charges (reversals)
1,524
1,231
17,319
(110
)
(733
)
nm
Loss on other loans held for sale
—
—
30,954
2,360
16,750
nm
Other operating expenses
34,180
32,435
36,305
36,727
32,987
4
Total non-interest expense
322,741
352,858
353,532
307,181
321,852
—
Income before income taxes
161,013
90,352
124,194
221,745
259,871
(38
)
Income tax expense
36,943
20,779
27,729
47,801
57,712
(36
)
Net income
124,070
69,573
96,465
173,944
202,159
(39
)
Less: Net income (loss) attributable to
noncontrolling interest
(437
)
(768
)
(630
)
(166
)
—
nm
Net income attributable to Synovus
Financial Corp.
124,507
70,341
97,095
174,110
202,159
(38
)
Less: Preferred stock dividends
9,685
9,696
9,672
8,291
8,291
17
Net income available to common
shareholders
$
114,822
60,645
87,423
165,819
193,868
(41
)%
Net income per common share, basic
$
0.78
0.41
0.60
1.13
1.33
(41
)%
Net income per common share, diluted
0.78
0.41
0.60
1.13
1.32
(41
)
Cash dividends declared per common
share
0.38
0.38
0.38
0.38
0.38
—
Return on average assets *
0.85
%
0.47
0.64
1.15
1.36
(51) bps
Return on average common equity *
10.2
5.9
8.2
15.5
19.2
(900
)
Weighted average common shares
outstanding, basic
146,430
146,372
146,170
146,113
145,799
—
%
Weighted average common shares
outstanding, diluted
147,122
146,877
146,740
146,550
146,727
—
nm - not meaningful
bps - basis points
* - ratios are annualized
Amounts may not total due to rounding
Synovus
BALANCE SHEET DATA
March 31, 2024
December 31, 2023
March 31, 2023
(Unaudited)
(In thousands, except share data)
ASSETS
Interest-earning deposits with banks and
other cash and cash equivalents
$
2,379,778
$
2,414,103
$
3,329,882
Federal funds sold and securities
purchased under resale agreements
43,722
37,323
35,518
Cash, cash equivalents, and restricted
cash
2,423,500
2,451,426
3,365,400
Investment securities available for sale,
at fair value
9,694,515
9,788,662
9,732,618
Loans held for sale (includes $36,698,
$47,338 and $44,400 measured at fair value, respectively)
130,586
52,768
669,447
Loans, net of deferred fees and costs
43,309,877
43,404,490
44,044,939
Allowance for loan losses
(492,661
)
(479,385
)
(457,010
)
Loans, net
42,817,216
42,925,105
43,587,929
Cash surrender value of bank-owned life
insurance
1,119,379
1,112,030
1,094,072
Premises, equipment, and software, net
375,315
365,851
367,089
Goodwill
480,440
480,440
452,390
Other intangible assets, net
43,021
45,928
25,267
Other assets
2,751,148
2,587,324
2,545,813
Total assets
$
59,835,120
$
59,809,534
$
61,840,025
LIABILITIES AND EQUITY
Liabilities:
Deposits:
Non-interest-bearing deposits
$
12,042,353
$
12,507,616
$
14,642,677
Interest-bearing deposits
38,537,889
38,231,569
35,311,259
Total deposits
50,580,242
50,739,185
49,953,936
Federal funds purchased and securities
sold under repurchase agreements
128,244
189,074
195,695
Other short-term borrowings
252,469
3,496
253,152
Long-term debt
2,031,735
1,932,534
5,146,252
Other liabilities
1,800,794
1,801,097
1,520,860
Total liabilities
54,793,484
54,665,386
57,069,895
Equity:
Shareholders' equity:
Preferred stock - no par value. Authorized
100,000,000 shares; issued 22,000,000
537,145
537,145
537,145
Common stock - $1.00 par value. Authorized
342,857,143 shares; issued 171,873,265, 171,360,188 and 170,713,864
respectively; outstanding 146,418,407, 146,705,330 and 146,059,006
respectively
171,873
171,360
170,714
Additional paid-in capital
3,957,576
3,955,819
3,925,449
Treasury stock, at cost; 25,454,858,
24,654,858 and 24,654,858 shares, respectively
(974,499
)
(944,484
)
(944,484
)
Accumulated other comprehensive income
(loss), net
(1,248,194
)
(1,117,073
)
(1,289,327
)
Retained earnings
2,574,017
2,517,226
2,370,633
Total Synovus Financial Corp.
shareholders’ equity
5,017,918
5,119,993
4,770,130
Noncontrolling interest in subsidiary
23,718
24,155
—
Total equity
5,041,636
5,144,148
4,770,130
Total liabilities and equity
$
59,835,120
$
59,809,534
$
61,840,025
Synovus
AVERAGE BALANCES, INTEREST, AND
YIELDS/RATES
(Unaudited)
First Quarter 2024
Fourth Quarter 2023
First Quarter 2023
(dollars in thousands)
Average Balance
Interest
Yield/
Rate
Average Balance
Interest
Yield/
Rate
Average Balance
Interest
Yield/
Rate
Assets
Interest earning assets:
Commercial loans (1) (2) (3)
$
34,943,797
$
583,459
6.72
%
$
35,106,156
$
590,588
6.67
%
$
35,030,809
$
526,529
6.10
%
Consumer loans (1) (2)
8,434,105
109,566
5.21
8,491,244
109,509
5.14
8,762,631
104,147
4.78
Less: Allowance for loan losses
(481,146
)
—
—
(480,332
)
—
—
(445,192
)
—
—
Loans, net
42,896,756
693,025
6.49
43,117,068
700,097
6.45
43,348,248
630,676
5.89
Investment securities available for
sale
11,148,242
71,906
2.58
11,164,487
65,176
2.33
11,293,958
61,054
2.16
Trading account assets
11,567
65
2.25
13,067
215
6.59
11,338
124
4.39
Other earning assets(4)
1,218,090
16,173
5.25
1,463,176
19,689
5.26
1,513,800
17,212
4.55
FHLB and Federal Reserve Bank stock
187,825
2,273
4.84
187,015
3,536
7.56
306,935
3,355
4.37
Mortgage loans held for sale
29,773
495
6.65
39,024
696
7.14
36,497
566
6.20
Other loans held for sale
18,465
83
1.77
8,044
104
5.06
443,690
5,011
4.52
Total interest earning assets
55,510,718
784,020
5.68
%
55,991,881
789,513
5.59
%
56,954,466
717,998
5.11
%
Cash and due from banks
532,624
522,986
643,502
Premises and equipment
370,376
366,647
370,275
Other real estate
61
—
—
Cash surrender value of bank-owned life
insurance
1,114,703
1,108,766
1,091,080
Other assets(5)
1,493,749
1,173,785
1,074,238
Total assets
$
59,022,231
$
59,164,065
$
60,133,561
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing demand deposits
$
10,590,340
65,415
2.48
%
$
10,422,286
58,588
2.23
%
$
9,088,533
23,218
1.04
%
Money market accounts
12,826,385
103,129
3.23
13,053,781
103,211
3.14
14,397,683
72,618
2.05
Savings deposits
1,057,087
287
0.11
1,098,914
275
0.10
1,370,173
211
0.06
Time deposits
7,902,850
86,493
4.40
7,198,229
75,462
4.16
3,601,288
21,496
2.42
Brokered deposits
5,737,445
77,342
5.42
6,069,055
81,444
5.32
5,553,970
56,392
4.12
Federal funds purchased and securities
sold under repurchase agreements
113,558
648
2.26
93,854
350
1.46
133,360
670
2.01
Other short-term borrowings
71,775
955
5.26
2,672
51
7.50
1,677,519
18,994
4.53
Long-term debt
1,764,740
29,595
6.69
1,922,661
31,702
6.55
3,148,062
42,529
5.41
Total interest-bearing liabilities
40,064,180
363,864
3.65
%
39,861,452
351,083
3.49
%
38,970,588
236,128
2.46
%
Non-interest-bearing demand deposits
12,071,670
12,744,275
15,014,224
Other liabilities
1,782,659
1,906,686
1,522,827
Total equity
5,103,722
4,651,652
4,625,922
Total liabilities and equity
$
59,022,231
$
59,164,065
$
60,133,561
Net interest income and net interest
margin, taxable equivalent (6)
$
420,156
3.04
%
$
438,430
3.11
%
$
481,870
3.43
%
Less: taxable-equivalent adjustment
1,310
1,216
1,119
Net interest income
$
418,846
$
437,214
$
480,751
(1)
Average loans are shown net of deferred
fees and costs. NPLs are included.
(2)
Interest income includes net loan fees as
follows: First Quarter 2024 — $10.6 million, Fourth Quarter 2023 —
$13.1 million, and First Quarter 2023 — $11.5 million.
(3)
Reflects taxable-equivalent adjustments,
using the statutory federal tax rate of 21%, in adjusting interest
on tax-exempt loans to a taxable-equivalent basis.
(4)
Includes interest-bearing funds with
Federal Reserve Bank, interest earning deposits with banks, and
federal funds sold and securities purchased under resale
agreements.
(5)
Includes average net unrealized
gains/(losses) on investment securities available for sale of
$(1.36) billion, $(1.89) billion, and $(1.52) billion for the First
Quarter 2024, Fourth Quarter 2023, and First Quarter 2023,
respectively.
(6)
The net interest margin is calculated by
dividing annualized net interest income-taxable equivalent by
average total interest earning assets.
Synovus
LOANS OUTSTANDING BY TYPE
(Unaudited)
(Dollars in thousands)
Total Loans
Total Loans
Linked Quarter
Total Loans
Year/Year
Loan Type
March 31, 2024
December 31, 2023
% Change
March 31, 2023
% Change
Commercial, Financial, and
Agricultural
$
14,616,902
$
14,459,345
1
%
$
14,201,398
3
%
Owner-Occupied
8,114,394
8,139,148
—
8,398,778
(3
)
Total Commercial &
Industrial
22,731,296
22,598,493
1
22,600,176
1
Multi-Family
4,199,435
4,098,188
2
3,374,129
24
Hotels
1,790,505
1,803,102
(1
)
1,737,163
3
Office Buildings
1,852,208
1,891,587
(2
)
3,071,236
(40
)
Shopping Centers
1,302,754
1,319,049
(1
)
1,332,078
(2
)
Warehouses
871,662
854,475
2
1,020,921
(15
)
Other Investment Property
1,294,317
1,396,903
(7
)
1,441,303
(10
)
Total Investment Properties
11,310,881
11,363,304
—
11,976,830
(6
)
1-4 Family Construction
194,146
194,481
—
201,896
(4
)
1-4 Family Investment Mortgage
385,992
404,021
(4
)
394,754
(2
)
Total 1-4 Family Properties
580,138
598,502
(3
)
596,650
(3
)
Commercial Development
66,000
73,022
(10
)
63,004
5
Residential Development
72,024
79,961
(10
)
106,872
(33
)
Land Acquisition
164,976
201,969
(18
)
253,399
(35
)
Land and Development
303,000
354,952
(15
)
423,275
(28
)
Total Commercial Real Estate
12,194,019
12,316,758
(1
)
12,996,755
(6
)
Consumer Mortgages
5,384,602
5,411,723
(1
)
5,246,640
3
Home Equity
1,804,348
1,807,399
—
1,757,250
3
Credit Cards
180,663
194,141
(7
)
184,595
(2
)
Other Consumer Loans
1,014,949
1,075,976
(6
)
1,259,523
(19
)
Total Consumer
8,384,562
8,489,239
(1
)
8,448,008
(1
)
Total
$
43,309,877
$
43,404,490
—
%
$
44,044,939
(2
)%
NON-PERFORMING LOANS
COMPOSITION
(Unaudited)
(Dollars in thousands)
Total
Total
Total
Non-performing Loans
Non-performing Loans
Linked Quarter
Non-performing Loans
Year/Year
Loan Type
March 31, 2024
December 31, 2023
% Change
March 31, 2023
% Change
Commercial, Financial, and
Agricultural
$
192,693
$
89,870
114
%
$
94,196
105
%
Owner-Occupied
80,218
91,370
(12
)
25,591
213
Total Commercial &
Industrial
272,911
181,240
51
119,787
128
Multi-Family
2,077
1,681
24
1,806
15
Office Buildings
7,630
35,338
(78
)
190
nm
Shopping Centers
547
641
(15
)
727
(25
)
Warehouses
188
196
(4
)
222
(15
)
Other Investment Property
1,784
1,914
(7
)
668
167
Total Investment Properties
12,226
39,770
(69
)
3,613
238
1-4 Family Investment Mortgage
2,300
3,056
(25
)
3,515
(35
)
Total 1-4 Family Properties
2,300
3,056
(25
)
3,515
(35
)
Residential Development
478
267
79
267
79
Land Acquisition
540
537
1
886
(39
)
Land and Development
1,018
804
27
1,153
(12
)
Total Commercial Real Estate
15,544
43,630
(64
)
8,281
88
Consumer Mortgages
42,563
46,108
(8
)
39,536
8
Home Equity
12,451
10,473
19
7,967
56
Other Consumer Loans
6,981
6,726
4
6,889
1
Total Consumer
61,995
63,307
(2
)
54,392
14
Total
$
350,450
$
288,177
22
%
$
182,460
92
%
Synovus
CREDIT QUALITY DATA
(Unaudited)
(Dollars in thousands)
2024
2023
First Quarter
First
Fourth
Third
Second
First
'24 vs '23
Quarter
Quarter
Quarter
Quarter
Quarter
% Change
Non-performing Loans (NPLs)
$
350,450
288,177
280,532
261,506
182,460
92
%
Other Real Estate and Other Assets
21,210
—
—
—
—
nm
Non-performing Assets (NPAs)
371,660
288,177
280,532
261,506
182,460
104
Allowance for Loan Losses (ALL)
492,661
479,385
477,532
471,238
457,010
8
Reserve for Unfunded Commitments
53,579
57,231
55,185
55,729
57,473
(7
)
Allowance for Credit Losses (ACL)
546,240
536,616
532,717
526,967
514,483
6
Net Charge-Offs - Quarter
44,356
41,574
66,822
26,396
18,550
Net Charge-Offs - YTD
44,356
153,342
111,768
44,946
18,550
Net Charge-Offs / Average Loans - Quarter
(1)
0.41
%
0.38
0.61
0.24
0.17
Net Charge-Offs / Average Loans - YTD
(1)
0.41
0.35
0.34
0.20
0.17
NPLs / Loans
0.81
0.66
0.64
0.59
0.41
NPAs / Loans, ORE and specific other
assets
0.86
0.66
0.64
0.59
0.41
ACL/Loans
1.26
1.24
1.22
1.19
1.17
ALL/Loans
1.14
1.10
1.09
1.06
1.04
ACL/NPLs
155.87
186.21
189.90
201.51
281.97
ALL/NPLs
140.58
166.35
170.22
180.20
250.47
Past Due Loans over 90 days and Still
Accruing
$
3,748
5,053
3,792
3,643
3,529
6
As a Percentage of Loans Outstanding
0.01
%
0.01
0.01
0.01
0.01
Total Past Due Loans and Still
Accruing
$
54,814
59,099
54,974
84,946
55,053
—
As a Percentage of Loans Outstanding
0.13
%
0.14
0.13
0.19
0.12
(1) Ratio is annualized.
SELECTED CAPITAL INFORMATION
(1)
(Unaudited)
(Dollars in thousands)
March 31, 2024
December 31, 2023
March 31, 2023
Common Equity Tier 1 Capital Ratio
10.38
%
10.22
9.77
Tier 1 Capital Ratio
11.44
11.28
10.81
Total Risk-Based Capital Ratio
13.31
13.07
12.72
Tier 1 Leverage Ratio
9.62
9.49
9.14
Total Synovus Financial Corp.
shareholders' equity as a Percentage of Total Assets
8.39
8.56
7.71
Tangible Common Equity Ratio (2) (4)
6.67
6.84
6.12
Book Value Per Common Share (3)
$
30.60
31.24
28.98
Tangible Book Value Per Common Share
(2)
27.03
27.65
25.71
(1) Current quarter regulatory capital
information is preliminary.
(2) Excludes the carrying value of
goodwill and other intangible assets from common equity and total
assets.
(3) Book Value Per Common Share consists
of Total Synovus Financial Corp. shareholders’ equity less
Preferred stock divided by total common shares outstanding.
(4) See "Non-GAAP Financial Measures" for
applicable reconciliation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240416411238/en/
Media Contact Audria Belton Media Relations
media@synovus.com
Investor Contact Jennifer H. Demba, CFA Investor
Relations investorrelations@synovus.com
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