Synovus Announces Earnings for the Third Quarter 2018
Diluted Earnings per Share of $0.84 vs. $0.78 in 3Q17
Adjusted Diluted Earnings per Share of $0.95, up 46% vs. 3Q17
COLUMBUS, Ga.--(BUSINESS WIRE)-- Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended September 30, 2018.
Third Quarter Highlights
-
Net income available to common shareholders was $99.3 million or $0.84
per diluted share as compared to $108.6 million or $0.91 per diluted
share for the second quarter 2018 and $95.4 million or $0.78 per
diluted share for the third quarter 2017.
- Adjusted diluted earnings per share were $0.95 as compared to $0.92 for the second quarter 2018 and $0.65 for the third quarter 2017.
- Return on average assets was 1.36% and adjusted return on average assets was 1.47%.
- Return on average common equity was 13.95%, adjusted return on average common equity was 15.69%, and adjusted return on average tangible common equity was 16.08%.
- Total loans ended the quarter at $25.58 billion, up $443.1 million or 7.0% annualized from the previous quarter and up $1.09 billion or 4.5% as compared to the third quarter 2017.
- Total average deposits grew $119.2 million or 1.8% annualized from the previous quarter and $1.10 billion or 4.4% as compared to the third quarter 2017.
- Net interest margin was 3.89%, up 3 basis points from the previous quarter and up 26 basis points from the third quarter 2017.
- Efficiency ratio was 60.62%, compared to 56.78% in the second quarter 2018 and 50.62% in the prior-year quarter. Adjusted efficiency ratio was 55.55%, versus 56.41% in the previous quarter and 58.59% in the third quarter 2017.
- Credit quality metrics remained favorable, with a non-performing asset ratio of 46 basis points, down 4 basis points from the previous quarter and down 11 basis points from the third quarter 2017.
- The effective year-to-date tax rate through the third quarter 2018 was 19.8% compared to 34.6% in the prior-year quarter.
“Our team again delivered solid performance during the third quarter, achieving broad-based loan growth, margin expansion, and sustained positive operating leverage,” said Kessel Stelling, Synovus chairman and CEO.�“We also celebrated the recent recognition of our company as one of American Banker’s Best Places to Work, driven by our people-centered culture.�We expect a strong finish in 2018 as our investments in talent, capabilities, and specialized lines of business drive meaningful growth, and we look forward to welcoming Florida Community Bank customers and team members to Synovus early next year.”
Balance Sheet
-
Total loans ended the quarter at $25.58 billion, up $443.1 million or
7.0% annualized from the previous quarter and up $1.09 billion or 4.5%
as compared to the third quarter 2017.
- Commercial and industrial loans grew by $227.8 million or 7.4% annualized from the previous quarter and $776.2 million or 6.6% as compared to the third quarter 2017.
- Consumer loans grew by $148.1 million or 9.4% annualized from the previous quarter and $827.6 million or 14.9% as compared to the third quarter 2017.
- Commercial real estate loans grew $68.2 million or 4.1% annualized from the previous quarter and declined $514.5 million or 7.1% as compared to the third quarter 2017.
- Total average loans were $25.32 billion, up $376.3 million or 6.0% annualized from the previous quarter and up $822.7 million or 3.4% as compared to the third quarter 2017.
-
Total average deposits were $26.39 billion, up $119.2 million or 1.8%
annualized from the previous quarter and up $1.10 billion or 4.4% as
compared to the third quarter 2017.
- Excluding brokered deposits, average deposits increased $269.2 million or 4.4% annualized from the previous quarter.
Core Performance
-
Total revenues were $363.3 million, up $4.0 million from the previous
quarter and down $34.7 million or 8.7% from the third quarter 2017.
- Adjusted total revenues were $363.0 million, up $3.6 million from the previous quarter and up $31.7 million or 9.6% from the third quarter 2017.
- Net interest income was $291.6 million, up $7.0 million or 2.5% from the previous quarter and up 11.1% from the third quarter 2017.
- Net interest margin was 3.89%, up 3 basis points from the previous quarter. Yield on earning assets was 4.58%, up 11 basis points from the previous quarter, and the effective cost of funds was 0.69%, up 8 basis points from the previous quarter.
-
Total non-interest income was $71.7 million, down $1.7 million from
the previous quarter and down $63.7 million from the third quarter
2017, which included the $75 million Cabela’s transaction fee,
partially offset by $8.0 million in investment securities losses.
- Adjusted non-interest income was $71.2 million, down $3.5 million or 4.7% from the previous quarter and up $2.8 million or 4.1% year-over-year.
- Core banking fees1 were $35.7 million, down $1.7 million or 4.7% from the previous quarter and flat from third quarter 2017.
- Fiduciary and asset management fees, brokerage revenue, and insurance revenues were $23.9 million, down $825 thousand from the previous quarter and up $2.8 million or 13.0% from the prior-year quarter.
- Mortgage banking income was $5.3 million, up 9.3% from the previous quarter and down 5.6% from the third quarter 2017.
-
Total non-interest expense was $220.3 million, up $16.2 million or
8.0% from the previous quarter and up 7.1% year-over-year.
-
Adjusted non-interest expense was $201.6 million, a decline of
$1.1 million from the previous quarter and an increase of $7.5
million or 3.9% from the third quarter 2017.
- Employment expense of $114.3 million increased 2.2% from the previous quarter and increased 4.3% from the third quarter 2017.
- Occupancy and equipment expense of $32.1 million declined 1.7% from the previous quarter and increased 5.0% from the prior-year quarter.
- Adjusted other expenses of $55.2 million decreased $3.0 million or 5.1% from the previous quarter and increased 2.5% from the third quarter 2017.
-
Adjusted non-interest expense was $201.6 million, a decline of
$1.1 million from the previous quarter and an increase of $7.5
million or 3.9% from the third quarter 2017.
-
Efficiency ratio was 60.62%, compared to 56.78% in the second quarter
2018 and 50.62% in the prior-year quarter.
- Adjusted efficiency ratio was 55.55%, versus 56.41% in the previous quarter and 58.59% in the third quarter 2017.
1 Core banking fees include service charges on deposit accounts, card fees, letter of credit fees, ATM fee income, line of credit non-usage fees, gains from sales of government guaranteed loans, and miscellaneous other service charges.
Credit Quality
- Non-performing loans were $108.4 million at September 30, 2018, down $8.9 million or 7.6% from June 30, 2018, and up $10.6 million or 10.8% from September 30, 2017. The non-performing loan ratio was 0.42% at September 30, 2018, compared to 0.47% at June 30, 2018, and 0.40% at September 30, 2017.
- Total non-performing assets were $117.0 million at September 30, 2018, down $9.4 million or 7.4% from June 30, 2018, and down $21.6 million or 15.6% from September 30, 2017. The non-performing asset ratio was 0.46% at September 30, 2018, as compared to 0.50% at June 30, 2018, and 0.57% at September 30, 2017.
- Net charge-offs were $15.3 million in the third quarter 2018, down $2.5 million from the previous quarter and down $23.2 million from $38.1 million in the third quarter 2017. The annualized net charge-off ratio was 0.24% in the third quarter as compared to 0.29% in the previous quarter.
- Total delinquencies (consisting of loans 30 or more days past due and still accruing) remained low at 0.31% of total loans at September 30, 2018, up from 0.22% in the previous quarter and down 4 basis points from September 30, 2017.
Capital Ratios
-
Ratios reflect repurchase of $58 million in common stock during the
third quarter.
- We anticipate that the full share repurchase authorization of $150 million will be completed by October 26, 2018.
- On August 1, 2018, Synovus redeemed all of its outstanding Series C Preferred Stock.
- Common Equity Tier 1 ratio was 9.92% at September 30, 2018, compared to 10.06% at September 30, 2017.
- Tier 1 Capital ratio was 10.59% at September 30, 2018, compared to 10.43% at September 30, 2017.
- Total Risk Based Capital ratio was 12.37% at September 30, 2018, compared to 12.30% at September 30, 2017.
- Tier 1 Leverage ratio was 9.58% at September 30, 2018, compared to 9.34% at September 30, 2017.
- Tangible Common Equity ratio was 8.68% at September 30, 2018, compared to 8.88% at September 30, 2017.
Third Quarter Earnings Conference Call
Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on October 23, 2018. 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 $32 billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services through 249 branches in Georgia, Alabama, South Carolina, Florida, and Tennessee. Synovus Bank, a wholly owned subsidiary of Synovus, was named one of American Banker’s “Best Banks to Work For” in 2018 and has been recognized as one of the country’s 10 “Most Reputable Banks” by American Banker and the Reputation Institute for four consecutive years. Synovus is on the web at synovus.com, and on Twitter, Facebook, LinkedIn, and Instagram.
Forward-Looking Statements
This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section�27A of the Securities Act of 1933, as amended, and Section�21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements through Synovus’ use of words such as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the future or otherwise regarding the outlook for Synovus’ future business and financial performance and/or the performance of the banking industry and economy in general. These forward-looking statements include, among others, our expectations regarding deposits, loan growth and the net interest margin; expectations on our growth strategy, strategic transactions, expense initiatives, capital management and future profitability; expectations on credit trends and key credit metrics; and the assumptions underlying our expectations. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Synovus to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, Synovus’ management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements in this press release. Many of these factors are beyond Synovus’ ability to control or predict.
These forward-looking statements are based upon information presently known to Synovus’ management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in Synovus’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2017, under the captions “Cautionary Notice Regarding Forward-Looking Statements” and “Risk Factors” and in Synovus’ quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as otherwise may be required by law.
Non-GAAP�Financial Measures
The measures entitled adjusted non-interest income; adjusted non-interest expense; adjusted other expenses; adjusted total revenues; adjusted efficiency ratio; adjusted earnings per diluted share; adjusted return on average assets; adjusted return on average common equity; adjusted return on average tangible common equity; tangible common equity ratio; and common equity Tier 1 (CET1) ratio (fully phased-in) are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are total non-interest income; total non-interest expense; other expenses; total revenues; efficiency ratio; earnings per diluted common share; return on average assets; return on average common equity; the ratio of total shareholders' equity to total assets; and the CET1 ratio, respectively.
Management believes that these non-GAAP financial measures provide meaningful additional information about Synovus to assist management and investors in evaluating Synovus’ operating results, financial strength, the performance of its business, and the strength of its capital position. However, these non-GAAP financial measures have inherent limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of operating results or capital position as reported under GAAP. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant items and other factors, and since they are not required to be uniformly applied, they may not be comparable to other similarly titled measures at other companies. Adjusted total revenues and adjusted non-interest income are measures used by management to evaluate total revenues and non-interest income exclusive of net investment securities gains (losses), changes in the fair value of private equity investments, net, and the Cabela’s transaction fee. Adjusted non-interest expense, adjusted other expenses, and the adjusted efficiency ratio are measures utilized by management to measure the success of expense management initiatives focused on reducing recurring controllable operating costs. 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. The adjusted return on average tangible common equity is a measure 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 (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) |
3Q18 |
2Q18 |
3Q17 |
|||||||||||||||||
| Adjusted non-interest income | ||||||||||||||||||||
| Total non-interest income | $ | 71,668 | $ | 73,387 | $ | 135,435 | ||||||||||||||
| Add: Investment securities losses, net | - | 1,296 | 7,956 | |||||||||||||||||
| Subtract/add: (Increase) decrease in fair value of private equity investments, net | (434 | ) | 37 | 27 | ||||||||||||||||
| Subtract: Cabela’s Transaction Fee | � | - | � | � | - | � | � | (75,000 | ) | |||||||||||
| Adjusted non-interest income | $ | 71,234 | � | $ | 74,720 | � | $ | 68,418 | � | |||||||||||
| � | ||||||||||||||||||||
| Adjusted non-interest expense and adjusted other expenses | ||||||||||||||||||||
| Total non-interest expense | $ | 220,297 | $ | 204,057 | $ | 205,646 | ||||||||||||||
| Add/subtract: Litigation settlement/contingency expense | - | 1,400 | (401 | ) | ||||||||||||||||
| Subtract: Discounts to fair value for completed or planned ORE accelerated dispositions | - | - | (7,082 | ) | ||||||||||||||||
| Subtract: Asset impairment charges related to accelerated disposition of corporate real estate and other properties | - | - | (1,168 | ) | ||||||||||||||||
| Subtract: Earnout liability adjustments | (11,652 | ) | - | (2,059 | ) | |||||||||||||||
| Subtract: Restructuring charges, net | (21 | ) | (103 | ) | (519 | ) | ||||||||||||||
| Subtract: Amortization of intangibles | (292 | ) | (292 | ) | (292 | ) | ||||||||||||||
| Subtract: Merger-related expense | (6,684 | ) | - | (23 | ) | |||||||||||||||
| Subtract: Valuation adjustment to Visa derivative | � | - | � | � | (2,328 | ) | � | - | � | |||||||||||
| Adjusted non-interest expense | $ | 201,648 | $ | 202,734 | $ | 194,102 | ||||||||||||||
| Subtract: Salaries and other personnel expense | (114,341 | ) | (111,863 | ) | (109,675 | ) | ||||||||||||||
| Subtract: Net occupancy and equipment expense | � | (32,088 | ) | � | (32,654 | ) | � | (30,573 | ) | |||||||||||
| Adjusted other expenses | $ | 55,219 | $ | 58,217 | $ | 53,854 | ||||||||||||||
| � | ||||||||||||||||||||
| Adjusted total revenues and adjusted efficiency ratio | ||||||||||||||||||||
| Adjusted non-interest expense | $ | 201,648 | $ | 202,734 | $ | 194,102 | ||||||||||||||
| Net interest income | 291,619 | 284,577 | 262,572 | |||||||||||||||||
| Add: Tax equivalent adjustment | 136 | 120 | 283 | |||||||||||||||||
| Add: Total non-interest income | 71,668 | 73,387 | 135,435 | |||||||||||||||||
| Add: Investment securities losses, net | � | - | � | � | 1,296 | � | � | 7,956 | � | |||||||||||
| Total FTE revenues | 363,423 | 359,380 | 406,246 | |||||||||||||||||
| Subtract/add: (Increase) decrease in fair value of private equity investments, net | (434 | ) | 37 | 27 | ||||||||||||||||
| Subtract: Cabela’s Transaction Fee | � | - | � | � | - | � | � | (75,000 | ) | |||||||||||
| Adjusted total revenues | $ | 362,989 | $ | 359,417 | $ | 331,273 | ||||||||||||||
| Efficiency ratio | 60.62 | % | 56.78 | % | 50.62 | % | ||||||||||||||
| Adjusted efficiency ratio | � | 55.55 | % | � | 56.41 | % | � | 58.59 | % | |||||||||||
| � | � | � | � | � | � | � | � | � | � | |||||||||||
|
Reconciliation of Non-GAAP Financial Measures,
continued |
||||||||||||||||||||
| � | ||||||||||||||||||||
|
(in thousands, except per share data) |
3Q18 |
2Q18 |
3Q17 |
|||||||||||||||||
| Adjusted earnings per diluted share | ||||||||||||||||||||
| Net income available to common shareholders | $ | 99,330 | $ | 108,622 | $ | 95,448 | ||||||||||||||
| Subtract: Income tax benefit related to effects of State Tax Reform | - | (608 | ) | - | ||||||||||||||||
| Add: Earnout liability adjustments | 11,652 | - | 2,059 | |||||||||||||||||
| Subtract: Income taxes | (9,865 | ) | - | - | ||||||||||||||||
| Add: Preferred stock redemption | 4,020 | - | - | |||||||||||||||||
| Add: Merger-related expense | 6,684 | - | 23 | |||||||||||||||||
| Subtract/add: Litigation settlement/contingency expense | - | (1,400 | ) | 401 | ||||||||||||||||
| Add: Provision expense on loans transferred to held-for-sale | - | - | 27,710 | |||||||||||||||||
| Add: Discounts to fair value for completed or planned ORE accelerated dispositions | - | - | 7,082 | |||||||||||||||||
| Add: Asset impairment charges related to accelerated disposition of corporate real estate and other properties | - | - | 1,168 | |||||||||||||||||
| Add: Restructuring charges, net | 21 | 103 | 519 | |||||||||||||||||
| Add: Amortization of intangibles | 292 | 292 | 292 | |||||||||||||||||
| Add: Valuation adjustment to Visa derivative | - | 2,328 | - | |||||||||||||||||
| Add: Investment securities losses, net | - | 1,296 | 7,956 | |||||||||||||||||
| Subtract/add: (Increase) decrease in fair value of private equity investments, net | (434 | ) | 37 | 27 | ||||||||||||||||
| Subtract: Cabela’s Transaction Fee | - | - | (75,000 | ) | ||||||||||||||||
| Add/subtract: Tax effect of adjustments | � | 27 | � | � | (624 | ) | � | 11,034 | � | |||||||||||
| Adjusted net income available to common shareholders | $ | 111,727 | $ | 110,046 | $ | 78,719 | ||||||||||||||
| Weighted average common shares outstanding, diluted | 118,095 | 119,139 | 121,814 | |||||||||||||||||
| Adjusted earnings per diluted share | $ | 0.95 | � | $ | 0.92 | � | $ | 0.65 | � | |||||||||||
| � | � | � | � | |||||||||||||
|
Reconciliation of Non-GAAP Financial Measures, continued |
||||||||||||||||
| (dollars in thousands) |
3Q18 |
2Q18 |
� | � |
3Q17 |
|||||||||||
| Adjusted return on average assets | ||||||||||||||||
| Net income | $ | 109,059 | $ | 111,181 | $ | 98,007 | ||||||||||
| Subtract: Income tax benefit related to effects of State Tax Reform | - | (608 | ) | - | ||||||||||||
| Add: Earnout liability adjustments | 11,652 | - | 2,059 | |||||||||||||
| Subtract: Income taxes | (9,865 | ) | - | - | ||||||||||||
| Add: Merger-related expense | 6,684 | - | 23 | |||||||||||||
| Subtract/add: Litigation settlement/contingency expense | - | (1,400 | ) | 401 | ||||||||||||
| Add: Provision expense on loans transferred to held-for-sale | - | - | 27,710 | |||||||||||||
| Add: Discounts to fair value for completed or planned ORE accelerated dispositions | - | - | 7,082 | |||||||||||||
| Add: Asset impairment charges related to accelerated disposition of corporate real estate and other properties | - | - | 1,168 | |||||||||||||
| Add: Restructuring charges, net | 21 | 103 | 519 | |||||||||||||
| Add: Amortization of intangibles | 292 | 292 | 292 | |||||||||||||
| Add: Valuation adjustment to Visa derivative | - | 2,328 | - | |||||||||||||
| Add: Investment securities losses, net | - | 1,296 | 7,956 | |||||||||||||
| Subtract/add: (Increase) decrease in fair value of private equity investments, net | (434 | ) | 37 | 27 | ||||||||||||
| Subtract: Cabela’s Transaction Fee | - | - | (75,000 | ) | ||||||||||||
| Add/subtract: Tax effect of adjustments | � | 27 | � | � | (624 | ) | � | 11,034 | � | |||||||
| Adjusted net income | $ | 117,436 | $ | 112,605 | $ | 81,278 | ||||||||||
| � | ||||||||||||||||
| Adjusted net income annualized | $ | 465,915 | $ | 451,657 | $ | 322,462 | ||||||||||
| Total average assets | $ | 31,725,604 | $ | 31,502,758 | $ | 30,678,388 | ||||||||||
| Adjusted return on average assets | 1.47 | % | 1.43 | % | 1.05 | % | ||||||||||
| � | � | � | � | � | � | � | ||||||||||||||
|
Reconciliation of Non-GAAP Financial Measures, continued |
||||||||||||||||||||
|
(dollars in thousands) |
3Q18 |
2Q18 |
� | � | � |
3Q17 |
||||||||||||||
| Adjusted return on average common equity and adjusted return on average tangible common equity | ||||||||||||||||||||
| Net income available to common shareholders | $ | 99,330 | $ | 108,622 | $ | 95,448 | ||||||||||||||
| Subtract: Income tax benefit related to effects of State Tax Reform | - | (608 | ) | - | ||||||||||||||||
| Add: Earnout liability adjustments | 11,652 | - | 2,059 | |||||||||||||||||
| Subtract: Income taxes | (9,865 | ) | - | - | ||||||||||||||||
| Add: Preferred stock redemption | 4,020 | - | - | |||||||||||||||||
| Add: Merger-related expense | 6,684 | - | 23 | |||||||||||||||||
| Subtract/add: Litigation settlement/contingency expense | - | (1,400 | ) | 401 | ||||||||||||||||
| Add: Provision expense on loans transferred to held-for-sale | - | - | 27,710 | |||||||||||||||||
| Add: Discounts to fair value for completed or planned ORE accelerated dispositions | - | - | 7,082 | |||||||||||||||||
| Add: Asset impairment charges related to accelerated disposition of corporate real estate and other properties | - | - | 1,168 | |||||||||||||||||
| Add: Restructuring charges, net | 21 | 103 | 519 | |||||||||||||||||
| Add: Amortization of intangibles | 292 | 292 | 292 | |||||||||||||||||
| Add: Valuation adjustment to Visa derivative | - | 2,328 | - | |||||||||||||||||
| Add: Investment securities losses, net | - | 1,296 | 7,956 | |||||||||||||||||
| Subtract/add: (Increase) decrease in fair value of private equity investments, net | (434 | ) | 37 | 27 | ||||||||||||||||
| Subtract: Cabela’s Transaction Fee | - | - | (75,000 | ) | ||||||||||||||||
| Add/subtract: Tax effect of adjustments | � | 27 | � | � | (624 | ) | � | 11,034 | � | |||||||||||
| Adjusted net income available to common shareholders | $ | 111,727 | $ | 110,046 | $ | 78,719 | ||||||||||||||
| � | ||||||||||||||||||||
| Adjusted net income annualized | $ | 443,265 | $ | 441,393 | $ | 312,309 | ||||||||||||||
| Total average shareholders’ equity less preferred stock | $ | 2,824,707 | $ | 2,831,368 | $ | 2,859,491 | ||||||||||||||
| Subtract: Goodwill | (57,315 | ) | (57,315 | ) | (57,167 | ) | ||||||||||||||
| Subtract: Other intangibles assets, net | � | (10,265 | ) | � | (10,555 | ) | � | (11,648 | ) | |||||||||||
| Total average tangible shareholders’ equity less preferred stock | $ | 2,757,127 | $ | 2,763,498 | $ | 2,790,676 | ||||||||||||||
|
� |
||||||||||||||||||||
|
Adjusted return on average common equity |
� | 15.69 | % | � | 15.59 | % | � | 10.92 | % | |||||||||||
|
Adjusted return on average tangible common equity |
� | 16.08 | % | � | 15.97 | % | � | 11.19 | % | |||||||||||
| � | � | � | � | � | � | � | � | � | � | |||||||||||
|
� Reconciliation of Non-GAAP Financial Measures, continued |
||||||||||||||||||||
|
(dollars in thousands) |
3Q18 |
2Q18 |
3Q17 |
|||||||||||||||||
| Tangible common equity ratio | ||||||||||||||||||||
| Total assets | $ | 32,075,120 | $ | 31,740,305 | $ | 31,642,123 | ||||||||||||||
| Subtract: Goodwill | (57,315 | ) | (57,315 | ) | (57,315 | ) | ||||||||||||||
| Subtract: Other intangible assets, net | � | (10,166 | ) | � | (10,458 | ) | � | (11,548 | ) | |||||||||||
| Tangible assets | $ | 32,007,639 | � | $ | 31,672,532 | � | $ | 31,573,260 | � | |||||||||||
| � | ||||||||||||||||||||
| Total shareholders’ equity | $ | 3,040,073 | $ | 3,167,694 | $ | 2,997,078 | ||||||||||||||
| Subtract: Goodwill | (57,315 | ) | (57,315 | ) | (57,315 | ) | ||||||||||||||
| Subtract: Other intangible assets, net | (10,166 | ) | (10,458 | ) | (11,548 | ) | ||||||||||||||
| Subtract: Preferred Stock | � | (195,138 | ) | � | (321,118 | ) | � | (125,980 | ) | |||||||||||
| Tangible common equity | $ | 2,777,454 | � | $ | 2,778,803 | � | $ | 2,802,235 | � | |||||||||||
| Total shareholders’ equity to total assets ratio | 9.48 | % | 9.98 | % | 9.47 | % | ||||||||||||||
| Tangible common equity ratio | 8.68 | % | 8.77 | % | 8.88 | % | ||||||||||||||
| � | ||||||||||||||||||||
| Common equity Tier 1 (CET1) ratio (fully phased-in) | ||||||||||||||||||||
| Common equity Tier 1 (CET1) | $ | 2,846,417 | ||||||||||||||||||
| Subtract: Adjustment related to capital components | � | (2,785 | ) | |||||||||||||||||
| CET1 (fully phased-in) | $ | 2,843,632 | � | |||||||||||||||||
| Total risk-weighted assets | $ | 28,701,637 | ||||||||||||||||||
| Total risk-weighted assets (fully phased-in) | $ | 28,808,199 | ||||||||||||||||||
| Common equity Tier 1 (CET 1) ratio | 9.92 | % | ||||||||||||||||||
| Common equity Tier 1 (CET1) ratio (fully phased-in) | 9.87 | % | ||||||||||||||||||
| � | � | � | ||||||||
| Synovus | ||||||||||
| � | ||||||||||
| INCOME STATEMENT DATA | Nine Months Ended | |||||||||
| (Unaudited) | ||||||||||
| (Dollars in thousands, except per share data) | September 30, | |||||||||
| � | � | � | � | � | � | � | ||||
| 2018 | 2017 | % Change | ||||||||
| � | � | � | � | � | � | � | ||||
| � | ||||||||||
| Interest income | $ | 986,911 | 855,563 | 15.4 | % | |||||
| Interest expense | 136,431 | 101,966 | 33.8 | |||||||
|
� |
||||||||||
| � | ||||||||||
| Net interest income | 850,480 | 753,597 | 12.9 | |||||||
| Provision for loan losses | 39,548 | 58,620 | (32.5) | |||||||
| � | ||||||||||
| � | ||||||||||
| Net interest income after provision for loan losses | 810,932 | 694,977 | 16.7 | |||||||
| � | ||||||||||
| � | ||||||||||
| Non-interest income: | ||||||||||
| Service charges on deposit accounts | 60,521 | 61,048 | (0.9) | |||||||
| Fiduciary and asset management fees | 40,881 | 37,290 | 9.6 | |||||||
| Card fees | 31,640 | 29,614 | 6.8 | |||||||
| Brokerage revenue | 26,924 | 21,947 | 22.7 | |||||||
| Mortgage banking income | 15,177 | 17,151 | (11.5) | |||||||
| Income from bank-owned life insurance | 11,720 | 9,560 | 22.6 | |||||||
| Cabela's Transaction Fee | - | 75,000 | nm | |||||||
| Investment securities losses, net | (1,296) | (289) | nm | |||||||
| Decrease in fair value of private equity investments, net | (2,659) | (3,193) | nm | |||||||
| Other fee income | 14,387 | 16,127 | (10.8) | |||||||
| Other non-interest income | 14,806 | 11,719 | 26.3 | |||||||
| � | ||||||||||
| � | ||||||||||
| Total non-interest income | 212,101 | 275,974 | (23.1) | |||||||
| � | ||||||||||
| � | ||||||||||
| � | ||||||||||
| Non-interest expense: | ||||||||||
| Salaries and other personnel expense | 339,924 | 322,079 | 5.5 | |||||||
| Net occupancy and equipment expense | 96,222 | 89,837 | 7.1 | |||||||
| Third-party processing expense | 43,822 | 39,882 | 9.9 | |||||||
| FDIC insurance and other regulatory fees | 19,765 | 20,723 | (4.6) | |||||||
| Professional fees | 18,087 | 20,048 | (9.8) | |||||||
| Advertising expense | 14,046 | 14,868 | (5.5) | |||||||
| Foreclosed real estate expense, net | 1,110 | 10,847 | (89.8) | |||||||
| Earnout liability adjustments | 11,652 | 3,766 | nm | |||||||
| Merger-related expense | 6,684 | 110 | nm | |||||||
| Amortization of intangibles | 875 | 767 | 14.1 | |||||||
| Valuation adjustment to Visa derivative | 2,328 | - | nm | |||||||
| Litigation settlement/contingency expense | (4,026) | 401 | nm | |||||||
| Restructuring charges, net | (191) | 7,043 | nm | |||||||
| Other operating expenses | 69,233 | 64,409 | 7.5 | |||||||
| � | ||||||||||
| Total non-interest expense | 619,531 | 594,780 | 4.2 | |||||||
| � | ||||||||||
| � | ||||||||||
| � | ||||||||||
| Income before income taxes | 403,502 | 376,171 | 7.3 | |||||||
| Income tax expense | 80,095 | 130,303 | (38.5) | |||||||
| � | ||||||||||
| � | ||||||||||
| Net income | 323,407 | 245,868 | 31.5 | |||||||
| � | ||||||||||
| Preferred stock dividends and redemption | 14,848 | 7,678 | 93.4 | |||||||
| � | ||||||||||
| � | ||||||||||
| Net income available to common shareholders | $ | 308,559 | 238,190 | 29.5 | % | |||||
| � | ||||||||||
| � | ||||||||||
| Net income per common share, basic | $ | 2.61 | 1.96 | 33.6 | % | |||||
| � | ||||||||||
| Net income per common share, diluted | 2.60 | 1.94 | 33.7 | |||||||
| � | ||||||||||
| Cash dividends declared per common share | 0.75 | 0.45 | 66.7 | |||||||
| � | ||||||||||
| Return on average assets* | 1.37 | % | 1.07 | 30 | bps | |||||
| Return on average common equity* | 14.65 | 11.20 | 345 | |||||||
| � | ||||||||||
| � | ||||||||||
| Weighted average common shares outstanding, basic | 118,096 | 121,796 | (3.0) | % | ||||||
| Weighted average common shares outstanding, diluted | 118,847 | 122,628 | (3.1) | |||||||
| � | ||||||||||
| nm - not meaningful | ||||||||||
| bps - basis points | ||||||||||
| * - ratios are annualized | ||||||||||
| � | � | � | � | � | � | � | � | � | � | ||||||||||||
| Synovus | |||||||||||||||||||||
| � | |||||||||||||||||||||
| INCOME STATEMENT DATA | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| (In thousands, except per share data) | 2018 | 2017 | |||||||||||||||||||
| � | � | � | � | � | � | � | � | � | � | � | � | ||||||||||
| Third | Second | First | Fourth | Third | Year/Year | ||||||||||||||||
| Quarter | � | � | Quarter | � | � | Quarter | � | Quarter | � | � | Quarter | � | % Change | � | |||||||
| � | |||||||||||||||||||||
| Interest income | $ | 343,942 | 329,834 | 313,134 | 306,934 | 297,652 | 15.6 | % | |||||||||||||
| Interest expense | 52,323 | 45,257 | 38,850 | 37,221 | 35,080 | 49.2 | |||||||||||||||
| � | |||||||||||||||||||||
| � | |||||||||||||||||||||
| Net interest income | 291,619 | 284,577 | 274,284 | 269,713 | 262,572 | 11.1 | |||||||||||||||
| Provision for loan losses | 14,982 | 11,790 | 12,776 | 8,565 | 39,686 | (62.2) | |||||||||||||||
| � | |||||||||||||||||||||
| � | |||||||||||||||||||||
| Net interest income after provision for loan losses | 276,637 | 272,787 | 261,508 | 261,148 | 222,886 | 24.1 | |||||||||||||||
| � | |||||||||||||||||||||
| � | |||||||||||||||||||||
| Non-interest income: | |||||||||||||||||||||
| Service charges on deposit accounts | 20,582 | 19,999 | 19,940 | 20,372 | 20,678 | (0.5) | |||||||||||||||
| Fiduciary and asset management fees | 13,462 | 13,983 | 13,435 | 13,195 | 12,615 | 6.7 | |||||||||||||||
| Card fees | 10,608 | 10,833 | 10,199 | 9,762 | 9,729 | 9.0 | |||||||||||||||
| Brokerage revenue | 9,329 | 8,900 | 8,695 | 7,758 | 7,511 | 24.2 | |||||||||||||||
| Mortgage banking income | 5,290 | 4,839 | 5,047 | 5,645 | 5,603 | (5.6) | |||||||||||||||
| Income from bank-owned life insurance | 3,771 | 3,733 | 4,217 | 3,900 | 3,232 | 16.7 | |||||||||||||||
| Cabela's Transaction Fee | - | - | - | - | 75,000 | nm | |||||||||||||||
| Investment securities losses, net | - | (1,296) | - | - | (7,956) | nm | |||||||||||||||
| Increase/(decrease) in fair value of private equity investments, net | 434 | (37) | (3,056) | 100 | (27) | nm | |||||||||||||||
| Other fee income | 4,510 | 5,259 | 4,618 | 4,042 | 5,094 | (11.5) | |||||||||||||||
| Other non-interest income | 3,682 | 7,174 | 3,951 | 4,578 | 3,956 | (6.9) | |||||||||||||||
| � | |||||||||||||||||||||
| � | |||||||||||||||||||||
| Total non-interest income | 71,668 | 73,387 | 67,046 | 69,352 | 135,435 | (47.1) | |||||||||||||||
| � | |||||||||||||||||||||
| � | |||||||||||||||||||||
| � | |||||||||||||||||||||
| Non-interest expense: | |||||||||||||||||||||
| Salaries and other personnel expense | 114,341 | 111,863 | 113,720 | 111,243 | 109,675 | 4.3 | |||||||||||||||
| Net occupancy and equipment expense | 32,088 | 32,654 | 31,480 | 30,126 | 30,573 | 5.0 | |||||||||||||||
| Third-party processing expense | 14,810 | 15,067 | 13,945 | 14,827 | 13,659 | 8.4 | |||||||||||||||
| FDIC insurance and other regulatory fees | 6,430 | 6,543 | 6,793 | 6,288 | 7,078 | (9.2) | |||||||||||||||
| Professional fees | 6,298 | 6,284 | 5,505 | 6,183 | 7,141 | (11.8) | |||||||||||||||
| Advertising expense | 3,735 | 5,220 | 5,092 | 8,081 | 3,610 | 3.5 | |||||||||||||||
| Foreclosed real estate expense, net | 360 | (107) | 856 | 1,693 | 7,265 | (95.0) | |||||||||||||||
| Earnout liability adjustments | 11,652 | - | - | 1,700 | 2,059 | nm | |||||||||||||||
| Merger-related expense | 6,684 | - | - | - | 23 | nm | |||||||||||||||
| Amortization of intangibles | 292 | 292 | 292 | 292 | 292 | - | |||||||||||||||
| Valuation adjustment to Visa derivative | - | 2,328 | - | - | - | - | |||||||||||||||
| Loss on early extinguishment of debt | - | - | - | 23,160 | - | - | |||||||||||||||
| Litigation settlement/contingency expense | - | (1,400) | (2,626) | 300 | 401 | nm | |||||||||||||||
| Restructuring charges, net | 21 | 103 | (315) | (29) | 519 | (96.0) | |||||||||||||||
| Other operating expenses | 23,586 | 25,210 | 20,437 | 22,670 | 23,351 | 1.0 | |||||||||||||||
| � | |||||||||||||||||||||
| Total non-interest expense | 220,297 | 204,057 | 195,179 | 226,534 | 205,646 | 7.1 | |||||||||||||||
| � | |||||||||||||||||||||
| � | |||||||||||||||||||||
| � | |||||||||||||||||||||
| Income before income taxes | 128,008 | 142,117 | 133,375 | 103,966 | 152,675 | (16.2) | |||||||||||||||
| Income tax expense | 18,949 | 30,936 | 30,209 | 74,361 | 54,668 | (65.3) | |||||||||||||||
| � | |||||||||||||||||||||
| � | |||||||||||||||||||||
| Net income | 109,059 | 111,181 | 103,166 | 29,605 | 98,007 | 11.3 | |||||||||||||||
| � | |||||||||||||||||||||
| Preferred stock dividends and redemption | 9,729 | 2,559 | 2,559 | 2,559 | 2,559 | nm | |||||||||||||||
| � | |||||||||||||||||||||
| Net income available to common shareholders | $ | 99,330 | 108,622 | 100,607 | 27,046 | 95,448 | 4.1 | % | |||||||||||||
| � | |||||||||||||||||||||
| Net income per common share, basic | $ | 0.85 | 0.92 | 0.85 | 0.23 | 0.79 | 7.3 | % | |||||||||||||
| � | |||||||||||||||||||||
| Net income per common share, diluted | 0.84 | 0.91 | 0.84 | 0.23 | 0.78 | 7.3 | |||||||||||||||
| � | |||||||||||||||||||||
| Cash dividends declared per common share | 0.25 | 0.25 | 0.25 | 0.15 | 0.15 | 66.7 | |||||||||||||||
| � | |||||||||||||||||||||
| Return on average assets * | 1.36 | % | 1.42 |
� |
1.34 | 0.37 | 1.27 | 9 | bps | ||||||||||||
| Return on average common equity * | 13.95 | 15.39 | 14.62 | 3.76 | 13.24 | 71 | |||||||||||||||
| � | |||||||||||||||||||||
| Weighted average common shares outstanding, basic | 117,241 | 118,397 | 118,666 | 119,282 | 120,900 | (3.0) | % | ||||||||||||||
| Weighted average common shares outstanding, diluted | 118,095 | 119,139 | 119,321 | 120,182 | 121,814 | (3.1) | |||||||||||||||
| � | |||||||||||||||||||||
| nm - not meaningful | |||||||||||||||||||||
| bps - basis points | |||||||||||||||||||||
| * - ratios are annualized | |||||||||||||||||||||
| � | � | � | � | � | � | � | |||||||
| Synovus | |||||||||||||
| � | � | � | � | ||||||||||
| BALANCE SHEET DATA | September 30, 2018 | December 31, 2017 | September 30, 2017 | ||||||||||
| (Unaudited) | |||||||||||||
| � | |||||||||||||
| (In thousands, except share data) | |||||||||||||
| � | |||||||||||||
| ASSETS | |||||||||||||
| Cash and due from banks | $ | 436,540 | 397,848 | 386,459 | |||||||||
| Interest bearing funds with Federal Reserve Bank | 515,493 | 460,928 | 1,297,581 | ||||||||||
| Interest earning deposits with banks | 34,470 | 26,311 | 6,047 | ||||||||||
|
Federal funds sold and securities purchased under resale agreements |
25,430 | 47,846 | 48,820 | ||||||||||
| Cash and cash equivalents | 1,011,933 | 932,933 | 1,738,907 | ||||||||||
| � | |||||||||||||
| Mortgage loans held for sale, at fair value | 37,276 | 48,024 | 54,072 | ||||||||||
| Investment securities available for sale, at fair value | 3,883,574 | 3,987,069 | 3,825,443 | ||||||||||
| � | |||||||||||||
| Loans, net of deferred fees and costs | 25,577,116 | 24,787,464 | 24,487,360 | ||||||||||
| Allowance for loan losses | (251,450) | (249,268) | (249,683) | ||||||||||
| Loans, net | 25,325,666 | 24,538,196 | 24,237,677 | ||||||||||
| � | |||||||||||||
| Cash surrender value of bank-owned life insurance | 551,061 | 540,958 | 536,985 | ||||||||||
| Premises and equipment, net | 431,012 | 426,813 | 423,245 | ||||||||||
| Goodwill | 57,315 | 57,315 | 57,315 | ||||||||||
| Other intangible assets | 10,166 | 11,254 | 11,548 | ||||||||||
| Deferred tax asset, net | 185,116 | 165,788 | 272,052 | ||||||||||
| Other assets | 582,001 | 513,487 | 484,879 | ||||||||||
| � | |||||||||||||
| Total assets | $ | 32,075,120 | 31,221,837 | 31,642,123 | |||||||||
| � | |||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||
| Liabilities: | |||||||||||||
| Deposits: | |||||||||||||
| Non-interest bearing deposits | $ | 7,628,736 | 7,686,339 | 7,302,682 | |||||||||
| Interest-bearing deposits | 18,804,922 | 18,461,561 | 18,883,546 | ||||||||||
| � | |||||||||||||
| Total deposits | 26,433,658 | 26,147,900 | 26,186,228 | ||||||||||
| � | |||||||||||||
|
Federal funds purchased and securities sold under repurchase agreements |
191,145 | 161,190 | 141,539 | ||||||||||
| Other short-term borrowings | 478,540 | 100,000 | - | ||||||||||
| Long-term debt | 1,656,909 | 1,606,138 | 1,882,607 | ||||||||||
| Other liabilities | 274,795 | 245,043 | 434,671 | ||||||||||
| � | |||||||||||||
| Total liabilities | 29,035,047 | 28,260,271 | 28,645,045 | ||||||||||
| � | |||||||||||||
| � | |||||||||||||
| Shareholders' equity: | |||||||||||||
| Series D Preferred Stock - no par value. 8,000,000 shares outstanding at September 30, 2018 | 195,138 | - | - | ||||||||||
| � | |||||||||||||
| Series C Preferred Stock - no par value. 5,200,000 shares outstanding at December 31, 2017 and September 30, 2017 | - | 125,980 | 125,980 | ||||||||||
| � | |||||||||||||
| Common stock - $1.00 par value. 116,714,463 shares outstanding at September 30, 2018, 118,897,295 shares outstanding at December 31, 2017, and 119,566,625 shares outstanding at September 30, 2017 | 143,093 | 142,678 | 142,525 | ||||||||||
| � | |||||||||||||
| Additional paid-in capital | 3,049,233 | 3,043,129 | 3,033,682 | ||||||||||
| � | |||||||||||||
| Treasury stock, at cost - 26,378,854 shares at September 30, 2018, 23,780,154 shares at December 31, 2017, and 22,958,514 shares at September 30, 2017 | (974,478) | (839,674) | (800,509) | ||||||||||
| � | |||||||||||||
| Accumulated other comprehensive loss | (143,720) | (54,754) | (39,596) | ||||||||||
| � | |||||||||||||
| Retained earnings | 770,807 | 544,207 | 534,996 | ||||||||||
| Total shareholders' equity | 3,040,073 | 2,961,566 | 2,997,078 | ||||||||||
| � | |||||||||||||
| Total liabilities and shareholders' equity | $ | 32,075,120 | 31,221,837 | 31,642,123 | |||||||||
| � | � | � | � | � | � | � | � | � | ||||||||||
| Synovus | ||||||||||||||||||
| � | � | |||||||||||||||||
| AVERAGE BALANCES AND YIELDS/RATES (1) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| 2018 | 2017 | |||||||||||||||||
| � | � | � | � | � | � | � | � | � | � | � | � | |||||||
| Third | Second | First | Fourth | Third | ||||||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||
| � | � | � | � | � | � | � | � | � | � | � | � | |||||||
| Interest Earning Assets | ||||||||||||||||||
| � | � | |||||||||||||||||
| Taxable investment securities (2) | $ | 4,061,239 | 4,077,564 | 4,097,162 | 3,937,278 | 3,786,436 | ||||||||||||
| Yield | 2.38 | % | 2.34 | 2.34 | 2.29 | 2.11 | ||||||||||||
| � | ||||||||||||||||||
| Tax-exempt investment securities (2) (4) | $ | 89 | 115 | 140 | 180 | 259 | ||||||||||||
| Yield (taxable equivalent) | 5.91 | % | 6.87 | 6.57 | 7.97 | 7.86 | ||||||||||||
| � | ||||||||||||||||||
| Trading account assets (5) | $ | 16,646 | 23,772 | 8,167 | 7,360 | 7,823 | ||||||||||||
| Yield | 2.52 | % | 2.79 | 2.66 | 2.78 | 2.09 | ||||||||||||
| � | ||||||||||||||||||
| Commercial loans (3) (4) | $ | 19,025,830 | 18,857,271 | 18,963,515 | 18,935,774 | 19,059,936 | ||||||||||||
| Yield | 4.98 | % | 4.85 | 4.64 | 4.49 | 4.41 | ||||||||||||
| � | ||||||||||||||||||
| Consumer loans (3) | $ | 6,298,643 | 6,092,899 | 5,899,015 | 5,704,629 | 5,440,765 | ||||||||||||
| Yield | 4.80 | % | 4.76 | 4.71 | 4.54 | 4.55 | ||||||||||||
| � | ||||||||||||||||||
| Allowance for loan losses | $ | (251,684) | � | � | (257,966) | � | � | (251,635) | (252,319) | � | � | (249,248) | ||||||
| � | ||||||||||||||||||
| Loans, net (3) | $ | 25,072,789 | 24,692,204 | 24,610,895 | 24,388,084 | 24,251,453 | ||||||||||||
| Yield | 4.99 | % | 4.88 | 4.70 | 4.55 | 4.49 | ||||||||||||
| � | ||||||||||||||||||
| Mortgage loans held for sale | $ | 49,030 | 50,366 | 38,360 | 45,353 | 52,177 | ||||||||||||
| Yield | 4.71 | % | 4.42 | 3.95 | 3.96 | 3.88 | ||||||||||||
| � | ||||||||||||||||||
|
Federal funds sold, due from Federal Reserve Bank, |
||||||||||||||||||
| and other short-term investments | $ | 544,704 | 724,537 | 516,575 | 922,296 | 543,556 | ||||||||||||
| Yield | 1.90 | % | 1.77 | 1.48 | 1.31 | 1.23 | ||||||||||||
| � | ||||||||||||||||||
| Federal Home Loan Bank and Federal Reserve Bank stock (5) | $ | 163,568 | 165,845 | 177,381 | 159,455 | 175,263 | ||||||||||||
| Yield | 4.41 | % | 4.63 | 3.39 | 4.03 | 3.50 | ||||||||||||
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | |||
| Total interest earning assets | $ | 29,908,065 | 29,734,403 | 29,448,680 | 29,460,006 | 28,816,967 | ||||||||||||
| Yield | 4.58 | % | 4.47 | 4.31 | 4.15 | 4.11 | ||||||||||||
| � | � | � | � | � | � | |||||||||||||
| � | ||||||||||||||||||
| Interest Bearing Liabilities | ||||||||||||||||||
| � | � | |||||||||||||||||
| � | ||||||||||||||||||
| Interest bearing demand deposits | $ | 4,701,204 | 5,001,826 | 5,032,000 | 4,976,239 | 4,868,372 | ||||||||||||
| Rate | 0.38 | % | 0.35 | 0.31 | 0.28 | 0.27 | ||||||||||||
| � | ||||||||||||||||||
| Money market accounts | $ | 7,936,621 | 7,791,107 | 7,561,554 | 7,514,992 | 7,528,036 | ||||||||||||
| Rate | 0.72 | % | 0.55 | 0.43 | 0.36 | 0.34 | ||||||||||||
| � | ||||||||||||||||||
| Savings deposits | $ | 824,935 | 829,800 | 811,587 | 804,853 | 803,184 | ||||||||||||
| Rate | 0.03 | % | 0.03 | 0.03 | 0.03 | 0.03 | ||||||||||||
| � | ||||||||||||||||||
| Time deposits under $100,000 | $ | 1,205,987 | 1,161,890 | 1,143,780 | 1,166,413 | 1,183,582 | ||||||||||||
| Rate | 0.99 | % | 0.82 | 0.71 | 0.70 | 0.68 | ||||||||||||
| � | ||||||||||||||||||
| Time deposits over $100,000 | $ | 2,273,582 | 2,021,084 | 1,895,545 | 2,004,031 | 2,067,347 | ||||||||||||
| Rate | 1.46 | % | 1.22 | 1.02 | 0.99 | 0.97 | ||||||||||||
| � | ||||||||||||||||||
| Non-maturing brokered deposits | $ | 358,277 | 262,976 | 424,118 | 546,413 | 547,466 | ||||||||||||
| Rate | 2.10 | % | 1.94 | 1.14 | 0.81 | 0.73 | ||||||||||||
| � | ||||||||||||||||||
| Brokered time deposits | $ | 1,414,700 | 1,659,941 | 1,527,793 | 1,651,920 | 983,423 | ||||||||||||
| Rate | 1.94 | % | � | 1.85 | � | � | 1.75 | 1.63 | � | � | 1.16 | |||||||
| � | ||||||||||||||||||
| Total interest-bearing deposits | $ | 18,715,306 | 18,728,624 | 18,396,377 | 18,664,861 | 17,981,410 | ||||||||||||
| Rate | 0.83 | % | 0.70 | 0.58 | 0.54 | 0.46 | ||||||||||||
| � | ||||||||||||||||||
|
Federal funds purchased and securities sold under |
||||||||||||||||||
| repurchase agreements | $ | 230,504 | 207,655 | 202,226 | 184,369 | 191,585 | ||||||||||||
| Rate | 0.25 | % | 0.35 | 0.21 | 0.15 | 0.08 | ||||||||||||
| � | ||||||||||||||||||
| Other short-term borrowings | $ | 146,794 | 3,024 | 394,056 | 3,261 | 102,717 | ||||||||||||
| Rate | 2.12 | % | 2.84 | 1.52 | 1.42 | 1.16 | ||||||||||||
| � | ||||||||||||||||||
| Long-term debt | $ | 1,656,743 | 1,852,094 | 1,733,938 | 1,710,721 | 1,882,458 | ||||||||||||
| Rate | 2.87 | % | 2.66 | 2.51 | 2.67 | 2.90 | ||||||||||||
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | |||
| � | ||||||||||||||||||
| Total interest-bearing liabilities | $ | 20,749,347 | 20,791,397 | 20,726,597 | 20,563,212 | 20,158,170 | ||||||||||||
| Rate | 0.99 | % | 0.87 | 0.76 | 0.72 | 0.69 | ||||||||||||
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | |||
| � | ||||||||||||||||||
| Non-interest bearing demand deposits | $ | 7,672,006 | 7,539,451 | 7,391,695 | 7,621,147 | 7,305,508 | ||||||||||||
| � | ||||||||||||||||||
| Effective cost of funds | 0.69 | % | 0.61 | 0.53 | 0.50 | 0.48 | ||||||||||||
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | |||
| � | ||||||||||||||||||
| Net interest margin | � | � | � | 3.89 | % | � | 3.86 | � | � | 3.78 | 3.65 | � | � | 3.63 | ||||
| � | ||||||||||||||||||
| Taxable equivalent adjustment | $ | 136 | 120 | 116 | 234 | 283 | ||||||||||||
| � | ||||||||||||||||||
| (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 (21% in 2018 and 35% in 2017), 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 Loans | Linked Quarter | Total Loans | Year/Year | |||||||||||||
| Loan Type | September 30, 2018 | June 30, 2018 | % Change (1) | September 30, 2017 | % Change | ||||||||||||
| � | � | � | � | � | � | ||||||||||||
| � | |||||||||||||||||
| Commercial, Financial, and Agricultural | $ | 7,281,466 | 7,271,080 | 0.6 | % | $ | 6,961,709 | 4.6 | % | ||||||||
| Owner-Occupied | 5,221,828 | 5,004,392 | 17.2 | 4,765,433 | 9.6 | ||||||||||||
| Total Commercial & Industrial | 12,503,294 | 12,275,472 | 7.4 | 11,727,142 | 6.6 | ||||||||||||
| � | |||||||||||||||||
| Multi-Family | 1,330,006 | 1,358,211 | (8.2) | 1,636,449 | (18.7) | ||||||||||||
| Hotels | 760,885 | 755,125 | 3.0 | 832,990 | (8.7) | ||||||||||||
| Office Buildings | 1,368,608 | 1,429,166 | (16.8) | 1,576,672 | (13.2) | ||||||||||||
| Shopping Centers | 815,696 | 811,186 | 2.2 | 840,367 | (2.9) | ||||||||||||
| Warehouses | 679,184 | 602,707 | 50.3 | 494,570 | 37.3 | ||||||||||||
| Other Investment Property | 711,311 | 553,201 | 113.4 | 544,048 | 30.7 | ||||||||||||
| Total Investment Properties | 5,665,690 | 5,509,596 | 11.2 | 5,925,096 | (4.4) | ||||||||||||
| � | |||||||||||||||||
| 1-4 Family Construction | 183,044 | 177,140 | 13.2 | 195,273 | (6.3) | ||||||||||||
| 1-4 Family Investment Mortgage | 524,152 | 543,570 | (14.2) | 599,342 | (12.5) | ||||||||||||
| Total 1-4 Family Properties | 707,196 | 720,710 | (7.4) | 794,615 | (11.0) | ||||||||||||
| � | |||||||||||||||||
| Commercial Development | 61,608 | 61,375 | 1.5 | 66,521 | (7.4) | ||||||||||||
| Residential Development | 91,578 | 100,246 | (34.3) | 117,878 | (22.3) | ||||||||||||
| Land Acquisition | 186,334 | 252,244 | (103.7) | 322,814 | (42.3) | ||||||||||||
| Land and Development | 339,520 | 413,865 | (71.3) | 507,213 | (33.1) | ||||||||||||
| � | |||||||||||||||||
| Total Commercial Real Estate | 6,712,406 | 6,644,171 | 4.1 | 7,226,924 | (7.1) | ||||||||||||
| � | |||||||||||||||||
| � | |||||||||||||||||
| Consumer Mortgages | 2,843,244 | 2,750,935 | 13.3 | 2,557,680 | 11.2 | ||||||||||||
| Home Equity Lines | 1,465,419 | 1,453,855 | 3.2 | 1,528,889 | (4.2) | ||||||||||||
| Credit Cards | 245,149 | 238,424 | 11.2 | 225,726 | 8.6 | ||||||||||||
| Other Consumer Loans | 1,831,385 | 1,793,916 | 8.3 | 1,245,277 | 47.1 | ||||||||||||
| Total Consumer | 6,385,197 | 6,237,130 | 9.4 | 5,557,572 | 14.9 | ||||||||||||
| Unearned Income | (23,781) | (22,717) | 18.6 | (24,278) | (2.0) | ||||||||||||
| � | |||||||||||||||||
| Total | $ | 25,577,116 | 25,134,056 | 7.0 | % | $ | 24,487,360 | 4.5 | % | ||||||||
| � | |||||||||||||||||
| � | |||||||||||||||||
| (1) Percentage change is annualized. | |||||||||||||||||
| � | � | � | � | � | � | � | |||||||||||
| NON-PERFORMING LOANS COMPOSITION | |||||||||||||||||
| (Unaudited) | � | ||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| � | � | � | � | � | |||||||||||||
| Total | Total | Total | |||||||||||||||
| Non-performing | Non-performing | Linked Quarter | Non-performing | Year/Year | |||||||||||||
| Loan Type | Loans | Loans | % Change | Loans | % Change | ||||||||||||
| � | September 30, 2018 | June 30, 2018 | � | September 30, 2017 | � | ||||||||||||
| � | |||||||||||||||||
| � | |||||||||||||||||
| Commercial, Financial, and Agricultural | $ | 69,010 | 81,231 | (15.0) | % | $ | 58,139 | 18.7 | % | ||||||||
| Owner-Occupied | 5,708 | 6,076 | (6.1) | 3,960 | 44.1 | ||||||||||||
| � | |||||||||||||||||
| Total Commercial & Industrial | 74,718 | 87,307 | (14.4) | 62,099 | 20.3 | ||||||||||||
| � | |||||||||||||||||
| Multi-Family | 234 | 176 | 33.0 | 1,096 | (78.6) | ||||||||||||
| Hotels | - | - | - | - | - | ||||||||||||
| Office Buildings | 166 | 670 | (75.2) | 234 | (29.1) | ||||||||||||
| Shopping Centers | 89 | 412 | (78.4) | 327 | (72.8) | ||||||||||||
| Warehouses | - | 21 | nm | 38 | nm | ||||||||||||
| Other Investment Property | 1,666 | 459 | 263.0 | 367 | nm | ||||||||||||
| � | |||||||||||||||||
| Total Investment Properties | 2,155 | 1,738 | 24.0 | 2,062 | 4.5 | ||||||||||||
| � | |||||||||||||||||
| � | |||||||||||||||||
| 1-4 Family Investment Mortgage | 3,139 | 3,247 | (3.3) | 2,712 | 15.7 | ||||||||||||
| � | |||||||||||||||||
| Total 1-4 Family Properties | 3,139 | 3,247 | (3.3) | 2,712 | 15.7 | ||||||||||||
| � | |||||||||||||||||
| Commercial Development | 42 | 42 | - | 47 | (10.6) | ||||||||||||
| Residential Development | 3,184 | 3,184 | - | 4,720 | (32.5) | ||||||||||||
| Land Acquisition | 1,603 | 1,398 | 14.7 | 2,161 | (25.8) | ||||||||||||
| � | |||||||||||||||||
| Land and Development | 4,829 | 4,624 | 4.4 | 6,928 | (30.3) | ||||||||||||
| � | |||||||||||||||||
| Total Commercial Real Estate | 10,123 | 9,609 |
5.3 |
11,702 | (13.5) | ||||||||||||
| � | |||||||||||||||||
| Consumer Mortgages | 5,313 | 4,822 | 10.2 | 6,332 | (16.1) | ||||||||||||
| Home Equity Lines | 14,498 | 14,265 | 1.6 | 15,638 | (7.3) | ||||||||||||
| Other Consumer Loans | 3,773 | 1,325 | 184.8 | 2,067 | 82.5 | ||||||||||||
| � | |||||||||||||||||
| Total Consumer | 23,584 | 20,412 | 15.5 | 24,037 | (1.9) | ||||||||||||
| � | |||||||||||||||||
| � | |||||||||||||||||
| Total | $ | 108,425 | 117,328 | (7.6) | % | $ | 97,838 | 10.8 | % | ||||||||
| � | � | � | � | � | � | � | � | � | � | |||||||||||
| Synovus | ||||||||||||||||||||
| � | ||||||||||||||||||||
| CREDIT QUALITY DATA | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Dollars in thousands) | 2018 | 2017 | ||||||||||||||||||
| � | � | � | � | � | � | � | � | � | � | � | � | � | ||||||||
| Third | Second | First | Fourth | Third |
Year/Year % |
|||||||||||||||
| Quarter | � | � | Quarter | � | � | Quarter | Quarter | � | Quarter |
change |
||||||||||
| � | ||||||||||||||||||||
| Non-performing Loans | $ | 108,425 | 117,328 | 120,081 | 115,561 | 97,838 | 10.8 | % | ||||||||||||
| Impaired Loans Held for Sale (1) | 12 | 2,733 | 6,591 | 11,278 | 30,197 | nm | ||||||||||||||
| Other Real Estate | 8,542 | 6,288 | 4,496 | 3,758 | 10,551 | (19.0) | � | |||||||||||||
| Non-performing Assets | 116,979 | 126,349 | 131,168 | 130,597 | 138,586 | (15.6) | ||||||||||||||
| � | ||||||||||||||||||||
| Allowance for loan losses | 251,450 | 251,725 | 257,764 | 249,268 | 249,683 | 0.7 | ||||||||||||||
| � | ||||||||||||||||||||
| Net Charge-Offs - Quarter | 15,257 | 17,829 | 4,280 | 8,979 | 38,099 | |||||||||||||||
| Net Charge-Offs - YTD | 37,366 | 22,109 | 4,280 | 69,675 | 60,695 | |||||||||||||||
| Net Charge-Offs / Average Loans - Quarter (2) | 0.24 | % | 0.29 | 0.07 | 0.15 | 0.62 | ||||||||||||||
| Net Charge-Offs / Average Loans - YTD (2) | 0.20 | 0.18 | 0.07 | 0.29 | 0.33 | |||||||||||||||
| � | ||||||||||||||||||||
| Non-performing Loans / Loans | 0.42 | 0.47 | 0.48 | 0.47 | 0.40 | |||||||||||||||
| Non-performing Assets / Loans, Impaired Loans Held for Sale, & ORE | 0.46 | 0.50 | 0.53 | 0.53 | 0.57 | |||||||||||||||
| Allowance / Loans | 0.98 | 1.00 | 1.04 | 1.01 | 1.02 | |||||||||||||||
| � | ||||||||||||||||||||
| Allowance / Non-performing Loans | 231.91 | 214.55 | 214.66 | 215.70 | 255.20 | |||||||||||||||
| Allowance / Non-performing Loans (3) | 288.21 | 262.99 | 241.49 | 238.44 | 336.35 | |||||||||||||||
| � | ||||||||||||||||||||
| Past Due Loans over 90 days and Still Accruing | $ | 4,856 | 3,222 | 5,416 | 4,414 | 5,685 | (14.6) | |||||||||||||
| As a Percentage of Loans Outstanding | 0.02 | % | 0.01 | 0.02 | 0.02 | 0.02 | ||||||||||||||
| � | ||||||||||||||||||||
| Total Past Due Loans and Still Accruing | $ | 78,323 | 55,614 | 54,150 | 52,032 | 84,853 | (7.7) | |||||||||||||
| As a Percentage of Loans Outstanding | 0.31 | % | 0.22 | 0.22 | 0.21 | 0.35 | ||||||||||||||
| � | ||||||||||||||||||||
| Accruing Troubled Debt Restructurings (TDRs) | $ | 114,740 | 125,310 | 129,394 | 151,271 | 166,918 | (31.3) | |||||||||||||
| � | ||||||||||||||||||||
| � | ||||||||||||||||||||
|
(1) Represent impaired loans that have been specifically identified to be sold. Impaired loans held for sale are carried at the lower of cost or fair value, less costs to sell, based primarily on estimated sales proceeds net of selling costs. |
||||||||||||||||||||
| (2) Ratio is annualized. | ||||||||||||||||||||
| � | (3) Excludes non-performing loans for which the expected loss has been charged off. | |||||||||||||||||||
| � | � | � | � | � | � | ||||||
| SELECTED CAPITAL INFORMATION (1) | |||||||||||
| (Unaudited) | |||||||||||
| (Dollars in thousands) | � | � | � | ||||||||
|
September 30, 2018 |
� |
December 31, 2017 |
� |
September 30, 2017 |
|||||||
| � | |||||||||||
| � | |||||||||||
| Tier 1 Capital | $ | 3,038,769 | 2,872,001 | 2,849,580 | |||||||
| Total Risk-Based Capital | 3,550,687 | 3,383,081 | 3,362,127 | ||||||||
| Common Equity Tier 1 Ratio (transitional) | 9.92 | % | 9.99 | 10.06 | |||||||
| Common Equity Tier 1 Ratio (fully phased-in) (5) | 9.87 | 9.88 | 9.88 | ||||||||
| Tier 1 Capital Ratio | 10.59 | 10.38 | 10.43 | ||||||||
| Total Risk-Based Capital Ratio | 12.37 | 12.23 | 12.30 | ||||||||
| Tier 1 Leverage Ratio | 9.58 | 9.19 | 9.34 | ||||||||
| Common Equity as a Percentage of Total Assets (2) | 8.87 | 9.08 | 9.07 | ||||||||
| Tangible Common Equity as a Percentage of Tangible Assets (3) (5) | 8.68 | 8.88 | 8.88 | ||||||||
| Book Value Per Common Share (4) | $ | 24.38 | 23.85 | 24.01 | |||||||
| Tangible Book Value Per Common Share (3) | 23.80 | 23.27 | 23.44 | ||||||||
| � | |||||||||||
| � | |||||||||||
| (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 of GAAP measures. | |||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20181023005331/en/
Synovus Financial Corp.
Media Relations:
Lee Underwood,
706-644-0528
or
Investor Relations:
Steve Adams,
706-641-6462
Source: Synovus Financial Corp.