Synovus Financial (NYSE: SNV) reported Q4 EPS of $1.08, $0.28 better than the analyst estimate of $0.80. Revenue for the quarter came in at $501.51 million versus the consensus estimate of $482.73 million.

Fourth Quarter 2020 Highlights

• Net income available to common shareholders was $142.1 million or $0.96 per diluted share as compared to $83.3 million or $0.56 in the prior quarter.
  • Adjusted earnings per diluted share of $1.08, up 22% sequentially and 15% year-over-year.
• Period-end loan decline of $1.30 billion or 3% sequentially.
  • Loans declined by $700 million or 2% from the third quarter, excluding PPP forgiveness of $540 million or $516 million, net of unearned fees, and lending partnership balance reductions of $81 million.
• Period-end deposit growth of $2.03 billion or 5% from the third quarter.
  • Core transaction deposits (non-interest bearing, NOW/savings, and money market deposits excluding public and brokered funds) increased $1.77 billion or 6% sequentially.
  • Total deposit costs of 28 basis points declined 11 basis points from the third quarter.
• Net interest income of $385.9 million increased $8.9 million or 2% sequentially.
• Non-interest revenue of $114.8 million stable with the prior quarter and increased $16.8 million year-over-year.
• Non-interest expense of $302.5 million, a decrease of $14.2 million from the third quarter and an increase of $36.4 million from the prior-year quarter.
  • Adjusted non-interest expense of $275.1 million increased $6.4 million sequentially, primarily due to a $4.5 million increase in expenses related to Synovus Forward, PPP, and COVID.
• Credit quality metrics remained relatively stable, with a non-performing loan ratio of 0.39% and non-performing asset ratio of 0.50%; net charge-off ratio of 0.23%.

“In a year marked by extraordinary volatility, we drew on the strength of our relationship-centered model to support our team members, customers, and communities,” said Kessel Stelling, Synovus chairman and CEO. “During 2020, we delivered approximately 19,000 PPP loans totaling $2.9 billion to small business customers throughout the Southeast and grew core transaction deposits $8.6 billion. We also accelerated investments in several technology initiatives that provided more convenience and a better digital experience as customers adapted to this highly virtual environment. And at year end, our higher capital levels, improved liquidity, and strong credit quality further demonstrated the strength and resiliency of our balance sheet in a challenging environment. In the year ahead, we expect our Synovus Forward initiatives to produce additional revenue opportunities, expense savings, and efficiencies that will further strengthen our bank. We continue to move forward with purpose, meeting the very real needs of individuals and businesses, and remain committed to being a source of stability, unity, and value creation for all we serve.”

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