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Synovus Announces Earnings for the Third Quarter 2022

Diluted Earnings per Share of $1.33 vs. $1.21 in 3Q21

Adjusted Diluted Earnings per Share of $1.34 vs. $1.20 in 3Q21

Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended Sept. 30, 2022. “We demonstrated ongoing progress this quarter as we continue to execute our strategic growth plan,” said Synovus President and CEO Kevin Blair. “Our strong third quarter performance is a result of increased productivity, deepened, more profitable client relationships as well as prudent expense management. Pre-provision net revenue of $288 million, up 24% year over year, was driven by broad-based loan growth and robust margin expansion. Credit quality was solid in the third quarter, and capital remained at targeted levels as we continued to utilize our strong earnings to support client loan growth. We are confident in and committed to our path forward by investing in our core and new business initiatives while prioritizing credit, capital and liquidity management as we face economic uncertainty ahead.”

Third Quarter 2022 Highlights

  • Net income available to common shareholders of $194.8 million, or $1.33 per diluted share, up $0.17 sequentially and up $0.12 compared to prior year.
  • Total revenue of $582.2 million increased $59.6 million sequentially, or 11%, and increased $82.3 million, or 16%, compared to prior year, driven by strong loan growth and higher interest rates.
  • Pre-provision net revenue of $288.2 million increased $47.6 million sequentially, or 20%, and increased $55.4 million, or 24%, compared to prior year.
  • Period-end loans increased $1.37 billion sequentially, or 13% annualized, with growth diversified across asset classes and commercial business lines.
  • Total deposits declined $1.34 billion sequentially, or 3%, primarily resulting from higher-rate, non-bank liquidity alternatives for clients, seasonality, and excess liquidity deployment.
  • Credit quality metrics continue to remain at strong levels with sequential improvement in the NPA ratio, stable NPL and criticized/classified loan ratios, and a historically low net charge-off ratio.
  • Maintained preliminary CET1 ratio of 9.51% as robust capital generation continued to support client loan growth.

Third Quarter Summary

 

Reported

 

Adjusted

(dollars in thousands)

 

3Q22

 

 

 

2Q22

 

 

 

3Q21

 

 

 

3Q22

 

 

 

2Q22

 

 

 

3Q21

 

Net income available to common shareholders

$

194,753

 

 

$

169,761

 

 

$

178,482

 

 

$

195,481

 

 

$

171,018

 

 

$

177,760

 

Diluted earnings per share

 

1.33

 

 

 

1.16

 

 

 

1.21

 

 

 

1.34

 

 

 

1.17

 

 

 

1.20

 

Total revenue

 

582,217

 

 

 

522,654

 

 

 

499,872

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

Total loans

 

42,571,458

 

 

 

41,204,780

 

 

 

38,341,030

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

Total deposits

 

47,697,564

 

 

 

49,034,700

 

 

 

47,688,419

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

Return on avg assets

 

1.39

%

 

 

1.26

%

 

 

1.34

%

 

 

1.39

%

 

 

1.27

%

 

 

1.33

%

Return on avg common equity

 

18.66

 

 

 

16.48

 

 

 

14.96

 

 

 

18.73

 

 

 

16.60

 

 

 

14.90

 

Return on avg tangible common equity

 

21.29

 

 

 

18.84

 

 

 

16.85

 

 

 

21.37

 

 

 

18.98

 

 

 

16.79

 

Net interest margin

 

3.49

 

 

 

3.22

 

 

 

3.01

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

Efficiency ratio-TE(1)(2)

 

50.41

 

 

 

53.87

 

 

 

53.34

 

 

 

49.98

 

 

 

53.43

 

 

 

52.96

 

NCO ratio-QTD

 

0.04

 

 

 

0.16

 

 

 

0.22

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

NPA ratio

 

0.32

 

 

 

0.33

 

 

 

0.45

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

 

(1) Taxable equivalent

(2) Adjusted tangible efficiency ratio 

 
 

Balance Sheet

Loans*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

3Q22

 

2Q22

 

Linked

Quarter

Change

 

Linked

Quarter

% Change

 

3Q21

 

Year/Year

Change

 

Year/Year

% Change

Commercial & industrial**

$

21,212.5

 

$

20,778.3

 

$

434.2

 

2

%

 

$

18,994.3

 

$

2,218.2

 

12

%

Commercial real estate

 

12,288.0

 

 

11,503.4

 

 

784.5

 

7

 

 

 

10,574.1

 

 

1,713.9

 

16

 

Consumer

 

9,071.0

 

 

8,923.0

 

 

147.9

 

2

 

 

 

8,772.7

 

 

298.3

 

3

 

Total loans

$

42,571.5

 

$

41,204.8

 

$

1,366.7

 

3

%

 

$

38,341.0

 

$

4,230.4

 

11

%

 

*Amounts may not total due to rounding

**Includes PPP balances of $42.8 million, $86.7 million, and $782.2 million at 3Q22, 2Q22, and 3Q21, respectively.

 
  • Total loans ended the quarter at $42.57 billion, up $1.37 billion sequentially, or 13% annualized.
  • Commercial and industrial (C&I) loans increased $434.2 million sequentially, led by broad based growth within our Wholesale Banking segment and higher utilization from commitments.
  • CRE loans increased $784.5 million sequentially, led by growth in multi-family loans and our Specialty Healthcare group in addition to the impact of a slowdown in payoffs.
  • Consumer loans increased $147.9 million sequentially led by home equity and mortgage.

Deposits*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

3Q22

 

2Q22

 

Linked

Quarter

Change

 

Linked

Quarter

% Change

 

3Q21

 

Year/Year

Change

 

Year/Year

% Change

Non-interest-bearing DDA

$

15,373.7

 

$

15,781.1

 

$

(407.4

)

 

(3

)%

 

$

14,832.9

 

$

540.8

 

 

4

%

Interest-bearing DDA

 

5,776.8

 

 

6,327.1

 

 

(550.3

)

 

(9

)

 

 

6,056.0

 

 

(279.2

)

 

(5

)

Money market

 

12,918.6

 

 

13,793.0

 

 

(874.5

)

 

(6

)

 

 

14,267.4

 

 

(1,348.9

)

 

(9

)

Savings

 

1,470.1

 

 

1,498.7

 

 

(28.6

)

 

(2

)

 

 

1,380.4

 

 

89.7

 

 

6

 

Public funds

 

5,549.7

 

 

5,863.9

 

 

(314.2

)

 

(5

)

 

 

5,791.6

 

 

(241.9

)

 

(4

)

Time deposits

 

2,110.9

 

 

2,147.8

 

 

(36.8

)

 

(2

)

 

 

2,579.3

 

 

(468.4

)

 

(18

)

Brokered deposits

 

4,497.8

 

 

3,623.1

 

 

874.7

 

 

24

 

 

 

2,780.7

 

 

1,717.1

 

 

62

 

Total deposits

$

47,697.6

 

$

49,034.7

 

$

(1,337.1

)

 

(3

)%

 

$

47,688.4

 

$

9.1

 

 

%

 

*Amounts may not total due to rounding

 
  • Total deposits ended the quarter at $47.70 billion, down $1.34 billion sequentially, impacted by higher-rate, non-bank liquidity alternatives for clients, seasonality, and excess liquidity deployment.
  • Total deposit costs increased 23 bps sequentially to 0.38% and were primarily impacted by the rising rate environment.

Income Statement Summary**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data)

 

3Q22

 

 

 

2Q22

 

 

Linked

Quarter

Change

 

Linked

Quarter

% Change

 

 

3Q21

 

 

Year/Year

Change

 

Year/Year

% Change

Net interest income

$

477,919

 

 

$

425,388

 

 

$

52,531

 

12

%

 

$

384,917

 

 

$

93,002

 

 

24

%

Non-interest revenue

 

104,298

 

 

 

97,266

 

 

 

7,032

 

7

 

 

 

114,955

 

 

 

(10,657

)

 

(9

)

Non-interest expense

 

294,010

 

 

 

282,051

 

 

 

11,959

 

4

 

 

 

267,032

 

 

 

26,978

 

 

10

 

Provision for (reversal of) credit losses

 

25,581

 

 

 

12,688

 

 

 

12,893

 

102

 

 

 

(7,868

)

 

 

33,449

 

 

nm

 

Income before taxes

$

262,626

 

 

$

227,915

 

 

$

34,711

 

15

%

 

$

240,708

 

 

$

21,918

 

 

9

%

Income tax expense

 

59,582

 

 

 

49,863

 

 

 

9,719

 

19

 

 

 

53,935

 

 

 

5,647

 

 

10

 

Preferred stock dividends

 

8,291

 

 

 

8,291

 

 

 

 

 

 

 

8,291

 

 

 

 

 

 

Net income available to common shareholders

$

194,753

 

 

$

169,761

 

 

$

24,992

 

15

%

 

$

178,482

 

 

$

16,271

 

 

9

%

Weighted average common shares outstanding, diluted

 

146,418

 

 

 

146,315

 

 

 

103

 

%

 

 

147,701

 

 

 

(1,283

)

 

(1

) %

Diluted earnings per share

$

1.33

 

 

$

1.16

 

 

$

0.17

 

15

 

 

$

1.21

 

 

$

0.12

 

 

10

 

Adjusted diluted earnings per share

 

1.34

 

 

 

1.17

 

 

 

0.17

 

15

 

 

 

1.20

 

 

 

0.14

 

 

12

 

Effective tax rate

 

22.69

%

 

 

21.88

%

 

 

 

 

 

 

22.41

%

 

 

 

 

 
 

** Amounts may not total due to rounding

 
 

Core Performance

  • Net interest income of $477.9 million was up $52.5 million sequentially, or 12%, and increased $93.0 million, or 24%, compared to prior year, driven by strong loan growth and higher rates.
    • Net interest margin was 3.49%, up 27 bps sequentially, aided by higher interest rates and deposit pricing discipline.
  • Non-interest revenue increased $7.0 million, or 7%, sequentially and decreased $10.7 million, or 9%, compared to prior year.
    • The quarter-over-quarter increase was largely due to a prior quarter $7 million write-down on a minority fintech investment.
    • Year-over-year decline was primarily related to the continued challenging residential mortgage banking environment and prior year gains on equity investments, partially offset by increases in wealth revenue, brokerage revenue, and card fee income categories.
  • Non-interest expense increased $12.0 million, or 4%, sequentially and increased $27.0 million, or 10%, compared to prior year. Adjusted non-interest expense increased $10.5 million, or 4%, sequentially and increased $27.1 million, or 10%, compared to prior year.
    • Increases were primarily due to higher performance-based incentives, merit-related salary increases, and operating costs related to realized revenue growth and investments in new growth initiatives.
  • Credit quality ratios remain historically strong. The non-performing loan and asset ratios were 0.29% and 0.32%, respectively; the net charge-off ratio for the quarter was 0.04%, and total past dues were 0.15% of total loans outstanding.
  • Provision for credit losses of $25.6 million increased $12.9 million sequentially and increased $33.4 million compared to prior year. Drivers of the increase included loan growth and a modest increase in the allowance for credit losses coverage ratio (to loans) of 2 bps sequentially, a result of deteriorating economic conditions mostly offset by continued strong credit quality.

Capital Ratios

 

3Q22

 

2Q22

 

3Q21

Common equity Tier 1 capital (CET1) ratio

9.51

%

*

9.46

%

 

9.58

%

Tier 1 capital ratio

10.58

 

*

10.56

 

 

10.79

 

Total risk-based capital ratio

12.44

 

*

12.43

 

 

12.92

 

Tier 1 leverage ratio

9.04

 

*

9.03

 

 

8.78

 

Tangible common equity ratio

5.52

 

 

6.26

 

 

7.68

 

* Ratios are preliminary.

 

Capital

  • Preliminary CET1 ratio improved 5 bps during the quarter to 9.51%, and the preliminary total risk-based capital ratio of 12.44% improved 1 bps from the previous quarter as capital generated through earnings helped offset the impact of loan growth.

Third Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on October 20, 2022. The earnings call will be accompanied by a slide presentation. Shareholders and other interested parties may listen to this conference call via simultaneous Internet broadcast. For a link to the webcast, go to investor.synovus.com/event. The replay will be archived for 12 months and will be available 30-45 minutes after the call.

Synovus Financial Corp. is a financial services company based in Columbus, Georgia, with approximately $59 billion in assets. Synovus provides commercial and consumer banking and a full suite of specialized products and services, including private banking, treasury management, wealth management, mortgage services, premium finance, asset-based lending, structured lending, capital markets and international banking. Synovus has 254 branches in Georgia, Alabama, South Carolina, Florida and Tennessee. Synovus is a Great Place to Work-Certified Company and is on the web at synovus.com and on Twitter, Facebook, LinkedIn and Instagram.

Forward-Looking Statements

This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements through Synovus’ use of words such as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the future or otherwise regarding the outlook for Synovus’ future business and financial performance and/or the performance of the banking industry and economy in general. These forward-looking statements include, among others, our expectations regarding our future operating and financial performance; expectations on our growth strategy, expense and revenue initiatives, capital management, balance sheet management, and future profitability; expectations on credit quality and performance; and the assumptions underlying our expectations. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Synovus to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, Synovus’ management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements in this press release. Many of these factors are beyond Synovus’ ability to control or predict.

These forward-looking statements are based upon information presently known to Synovus’ management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in Synovus’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2021, under the captions “Cautionary Notice Regarding Forward-Looking Statements” and “Risk Factors” and in Synovus’ quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as otherwise may be required by law.

Non-GAAP Financial Measures

The measures entitled adjusted non-interest expense; adjusted 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 expense; 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 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 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)

 

3Q22

 

 

 

2Q22

 

 

 

3Q21

 

 

 

 

 

 

 

Adjusted non-interest expense

 

 

 

 

 

Total non-interest expense

$

294,010

 

 

$

282,051

 

 

$

267,032

 

Subtract: Earnout liability adjustments

 

 

 

 

 

 

 

243

 

Subtract/add: Restructuring charges

 

(956

)

 

 

1,850

 

 

 

(319

)

Subtract: Valuation adjustment to Visa derivative

 

 

 

 

(3,500

)

 

 

 

Subtract/add: Fair value adjustment on non-qualified deferred compensation

 

1,076

 

 

 

3,240

 

 

 

97

 

Adjusted non-interest expense

$

294,130

 

 

$

283,641

 

 

$

267,053

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

3Q22

 

 

 

2Q22

 

 

 

3Q21

 

Adjusted tangible efficiency ratio

 

 

 

 

 

Adjusted non-interest expense

$

294,130

 

 

$

283,641

 

 

$

267,053

 

Subtract: Amortization of intangibles

 

(2,118

)

 

 

(2,118

)

 

 

(2,379

)

Adjusted tangible non-interest expense

$

292,012

 

 

$

281,523

 

 

$

264,674

 

 

 

 

 

 

 

Net interest income

$

477,919

 

 

$

425,388

 

 

$

384,917

 

Add: Tax equivalent adjustment

 

972

 

 

 

960

 

 

 

736

 

Add: Total non-interest revenue

 

104,298

 

 

 

97,266

 

 

 

114,955

 

Total TE revenue

 

583,189

 

 

 

523,614

 

 

 

500,608

 

Add/subtract: Investment securities losses (gains), net

 

 

 

 

 

 

 

(962

)

Subtract/add: Fair value adjustment on non-qualified deferred compensation

 

1,076

 

 

 

3,240

 

 

 

97

 

Total adjusted revenue

$

584,265

 

 

$

526,854

 

 

$

499,743

 

Efficiency ratio-TE

 

50.41

%

 

 

53.87

%

 

 

53.34

%

Adjusted tangible efficiency ratio

 

49.98

 

 

 

53.43

 

 

 

52.96

 

 

 

 

 

 

 

Adjusted return on average assets

 

 

 

 

 

Net income

$

203,044

 

 

$

178,052

 

 

$

186,773

 

Add: Earnout liability adjustments

 

 

 

 

 

 

 

(243

)

Add/subtract: Restructuring charges

 

956

 

 

 

(1,850

)

 

 

319

 

Add: Valuation adjustment to Visa derivative

 

 

 

 

3,500

 

 

 

 

Add/subtract: Investment securities losses (gains), net

 

 

 

 

 

 

 

(962

)

Add/subtract: Tax effect of adjustments (1)

 

(228

)

 

 

(393

)

 

 

164

 

Adjusted net income

$

203,772

 

 

$

179,309

 

 

$

186,051

 

Net income annualized

$

805,555

 

 

$

714,165

 

 

$

741,002

 

Adjusted net income annualized

$

808,443

 

 

$

719,206

 

 

$

738,137

 

Total average assets

$

58,055,979

 

 

$

56,536,940

 

 

$

55,326,260

 

Return on average assets

 

1.39

%

 

 

1.26

%

 

 

1.34

%

Adjusted return on average assets

 

1.39

 

 

 

1.27

 

 

 

1.33

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income available to common shareholders and adjusted diluted earnings per share

 

 

 

 

 

Net income available to common shareholders

$

194,753

 

 

$

169,761

 

 

$

178,482

 

Add: Earnout liability adjustments

 

 

 

 

 

 

 

(243

)

Add/subtract: Restructuring charges

 

956

 

 

 

(1,850

)

 

 

319

 

Add: Valuation adjustment to Visa derivative

 

 

 

 

3,500

 

 

 

 

Add/subtract: Investment securities losses (gains), net

 

 

 

 

 

 

 

(962

)

Add/subtract: Tax effect of adjustments (1)

 

(228

)

 

 

(393

)

 

 

164

 

Adjusted net income available to common shareholders

$

195,481

 

 

$

171,018

 

 

$

177,760

 

Weighted average common shares outstanding, diluted

 

146,418

 

 

 

146,315

 

 

 

147,701

 

Diluted earnings per share

$

1.33

 

 

$

1.16

 

 

$

1.21

 

Adjusted diluted earnings per share

 

1.34

 

 

 

1.17

 

 

 

1.20

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

3Q22

 

 

 

2Q22

 

 

 

3Q21

 

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

$

194,753

 

 

$

169,761

 

 

$

178,482

 

Subtract/add: Earnout liability adjustments

 

 

 

 

 

 

 

(243

)

Add/subtract: Restructuring charges

 

956

 

 

 

(1,850

)

 

 

319

 

Add: Valuation adjustment to Visa derivative

 

 

 

 

3,500

 

 

 

 

Add/subtract: Investment securities losses (gains), net

 

 

 

 

 

 

 

(962

)

Add/subtract: Tax effect of adjustments (1)

 

(228

)

 

 

(393

)

 

 

164

 

Adjusted net income available to common shareholders

$

195,481

 

 

$

171,018

 

 

$

177,760

 

 

 

 

 

 

 

Adjusted net income available to common shareholders annualized

$

775,550

 

 

$

685,951

 

 

$

705,243

 

Add: Amortization of intangibles, annualized net of tax

 

6,401

 

 

 

6,471

 

 

 

7,050

 

Adjusted net income available to common shareholders excluding amortization of intangibles annualized

$

781,951

 

 

$

692,422

 

 

$

712,293

 

 

 

 

 

 

 

Net income available to common shareholders annualized

$

772,661

 

 

$

680,910

 

 

$

708,108

 

Add: Amortization of intangibles, annualized net of tax

 

6,401

 

 

 

6,471

 

 

 

7,050

 

Net income available to common shareholders excluding amortization of intangibles annualized

$

779,062

 

 

$

687,381

 

 

$

715,158

 

 

 

 

 

 

 

Total average shareholders' equity less preferred stock

$

4,141,516

 

 

$

4,132,536

 

 

$

4,734,754

 

Subtract: Goodwill

 

(452,390

)

 

 

(452,390

)

 

 

(452,390

)

Subtract: Other intangible assets, net

 

(30,214

)

 

 

(32,387

)

 

 

(39,109

)

Total average tangible shareholders' equity less preferred stock

$

3,658,912

 

 

$

3,647,759

 

 

$

4,243,255

 

Return on average common equity

 

18.66

%

 

 

16.48

%

 

 

14.96

%

Adjusted return on average common equity

 

18.73

 

 

 

16.60

 

 

 

14.90

 

Return on average tangible common equity

 

21.29

 

 

 

18.84

 

 

 

16.85

 

Adjusted return on average tangible common equity

 

21.37

 

 

 

18.98

 

 

 

16.79

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

September 30,

2022

 

June 30,

2022

 

December 31,

2021

 

September 30,

2021

 

 

 

 

 

 

 

 

Tangible common equity ratio

 

 

 

 

 

 

 

Total assets

$

58,639,522

 

 

$

57,382,745

 

 

$

57,317,226

 

 

$

55,509,129

 

Subtract: Goodwill

 

(452,390

)

 

 

(452,390

)

 

 

(452,390

)

 

 

(452,390

)

Subtract: Other intangible assets, net

 

(29,242

)

 

 

(31,360

)

 

 

(35,596

)

 

 

(37,975

)

Tangible assets

$

58,157,890

 

 

$

56,898,995

 

 

$

56,829,240

 

 

$

55,018,764

 

 

 

 

 

 

 

 

 

Total shareholders’ equity

$

4,229,715

 

 

$

4,584,438

 

 

$

5,296,800

 

 

$

5,252,802

 

Subtract: Goodwill

 

(452,390

)

 

 

(452,390

)

 

 

(452,390

)

 

 

(452,390

)

Subtract: Other intangible assets, net

 

(29,242

)

 

 

(31,360

)

 

 

(35,596

)

 

 

(37,975

)

Subtract: Preferred Stock, no par value

 

(537,145

)

 

 

(537,145

)

 

 

(537,145

)

 

 

(537,145

)

Tangible common equity

$

3,210,938

 

 

$

3,563,543

 

 

$

4,271,669

 

 

$

4,225,292

 

Total shareholders’ equity to total assets ratio

 

7.21

%

 

 

7.99

%

 

 

9.24

%

 

 

9.46

%

Tangible common equity ratio

 

5.52

 

 

 

6.26

 

 

 

7.52

 

 

 

7.68

 

 

 

 

 

 

 

 

 

(1) An assumed marginal tax rate of 23.8% for 2022 and 25.3% for 2021 was applied.

 
 
 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT DATA

 

(Unaudited)

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

Nine Months Ended September 30,

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

2021

 

 

22 vs '21

 

 

 

 

% Change

 

 

 

 

 

 

 

 

 

Interest income

$

1,421,133

 

 

$

1,235,064

 

 

15

%

 

Interest expense

 

125,578

 

 

 

94,430

 

 

33

 

 

 

 

 

 

 

 

 

 

Net interest income

 

1,295,555

 

 

 

1,140,634

 

 

14

 

 

Provision for (reversal of) credit losses

 

49,669

 

 

 

(51,041

)

 

nm

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for credit losses

 

1,245,886

 

 

 

1,191,675

 

 

5

 

 

 

 

 

 

 

 

 

 

Non-interest revenue:

 

 

 

 

 

 

 

Service charges on deposit accounts

 

69,428

 

 

 

64,089

 

 

8

 

 

Fiduciary and asset management fees

 

59,577

 

 

 

56,545

 

 

5

 

 

Card fees

 

45,946

 

 

 

38,538

 

 

19

 

 

Brokerage revenue

 

47,038

 

 

 

41,644

 

 

13

 

 

Mortgage banking income

 

14,922

 

 

 

47,312

 

 

(68

)

 

Capital markets income

 

19,704

 

 

 

18,929

 

 

4

 

 

Income from bank-owned life insurance

 

22,514

 

 

 

22,851

 

 

(1

)

 

Investment securities gains (losses), net

 

 

 

 

(1,028

)

 

nm

 

 

Other non-interest revenue

 

27,768

 

 

 

44,117

 

 

(37

)

 

 

 

 

 

 

 

 

 

Total non-interest revenue

 

306,897

 

 

 

332,997

 

 

(8

)

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

Salaries and other personnel expense

 

499,081

 

 

 

482,408

 

 

3

 

 

Net occupancy, equipment, and software expense

 

129,538

 

 

 

126,442

 

 

2

 

 

Third-party processing and other services

 

65,486

 

 

 

63,897

 

 

2

 

 

Professional fees

 

26,094

 

 

 

23,771

 

 

10

 

 

FDIC insurance and other regulatory fees

 

20,851

 

 

 

16,338

 

 

28

 

 

Restructuring charges

 

(7,318

)

 

 

1,265

 

 

nm

 

 

Other operating expenses

 

114,779

 

 

 

90,576

 

 

27

 

 

 

 

 

 

 

 

 

 

Total non-interest expense

 

848,511

 

 

 

804,697

 

 

5

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

704,272

 

 

 

719,975

 

 

(2

)

 

Income tax expense

 

152,140

 

 

 

159,910

 

 

(5

)

 

 

 

 

 

 

 

 

 

Net income

 

552,132

 

 

 

560,065

 

 

(1

)

 

 

 

 

 

 

 

 

 

Less: Preferred stock dividends

 

24,872

 

 

 

24,872

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

$

527,260

 

 

$

535,193

 

 

(1

)%

 

 

 

 

 

 

 

 

 

Net income per common share, basic

$

3.63

 

 

$

3.63

 

 

0

%

 

 

 

 

 

 

 

 

 

Net income per common share, diluted

 

3.60

 

 

 

3.59

 

 

0

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

1.02

 

 

 

0.99

 

 

3

 

 

 

 

 

 

 

 

 

 

Return on average assets *

 

1.29

%

 

 

1.37

%

 

(8) bps

 

 

Return on average common equity *

 

16.37

 

 

 

15.37

 

 

100

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

145,329

 

 

 

147,622

 

 

(2

)%

 

Weighted average common shares outstanding, diluted

 

146,465

 

 

 

149,069

 

 

(2

)

 

 

 

 

 

 

 

 

 

nm - not meaningful

 

bps - basis points

 

* - ratios are annualized

 
 
 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT DATA

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

2022

 

2021

 

Third

Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third

Quarter

 

Second

Quarter

 

First

Quarter

 

Fourth

Quarter

 

Third

Quarter

 

'22 vs '21

 

 

 

 

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

551,299

 

 

453,772

 

 

416,062

 

 

418,279

 

 

412,504

 

 

34

%

 

Interest expense

 

73,380

 

 

28,384

 

 

23,814

 

 

25,966

 

 

27,587

 

 

166

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

477,919

 

 

425,388

 

 

392,248

 

 

392,313

 

 

384,917

 

 

24

 

 

Provision for (reversal of) credit losses

 

25,581

 

 

12,688

 

 

11,400

 

 

(55,210

)

 

(7,868

)

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for credit losses

 

452,338

 

 

412,700

 

 

380,848

 

 

447,523

 

 

392,785

 

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

23,398

 

 

23,491

 

 

22,539

 

 

22,221

 

 

22,641

 

 

3

 

 

Fiduciary and asset management fees

 

19,201

 

 

20,100

 

 

20,277

 

 

20,602

 

 

19,786

 

 

(3

)

 

Card fees

 

15,101

 

 

16,089

 

 

14,756

 

 

12,861

 

 

13,238

 

 

14

 

 

Brokerage revenue

 

17,140

 

 

15,243

 

 

14,655

 

 

14,795

 

 

14,745

 

 

16

 

 

Mortgage banking income

 

5,065

 

 

3,904

 

 

5,953

 

 

7,059

 

 

11,155

 

 

(55

)

 

Capital markets income

 

6,839

 

 

7,393

 

 

5,472

 

 

7,188

 

 

8,089

 

 

(15

)

 

Income from bank-owned life insurance

 

6,792

 

 

9,165

 

 

6,556

 

 

15,168

 

 

6,820

 

 

 

 

Investment securities gains (losses), net

 

 

 

 

 

 

 

230

 

 

962

 

 

nm

 

 

Other non-interest revenue

 

10,762

 

 

1,881

 

 

15,126

 

 

16,944

 

 

17,519

 

 

(39

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest revenue

 

104,298

 

 

97,266

 

 

105,334

 

 

117,068

 

 

114,955

 

 

(9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and other personnel expense

 

173,334

 

 

161,063

 

 

164,684

 

 

167,018

 

 

160,364

 

 

8

 

 

Net occupancy, equipment, and software expense

 

43,462

 

 

43,199

 

 

42,877

 

 

42,780

 

 

43,483

 

 

 

 

Third-party processing and other services

 

22,539

 

 

21,952

 

 

20,996

 

 

22,791

 

 

19,446

 

 

16

 

 

Professional fees

 

6,755

 

 

10,865

 

 

8,474

 

 

9,014

 

 

6,739

 

 

 

 

FDIC insurance and other regulatory fees

 

7,707

 

 

6,894

 

 

6,250

 

 

6,016

 

 

5,212

 

 

48

 

 

Restructuring charges

 

956

 

 

(1,850

)

 

(6,424

)

 

5,958

 

 

319

 

 

nm

 

 

Other operating expenses

 

39,257

 

 

39,928

 

 

35,593

 

 

41,630

 

 

31,469

 

 

25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest expense

 

294,010

 

 

282,051

 

 

272,450

 

 

295,207

 

 

267,032

 

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

262,626

 

 

227,915

 

 

213,732

 

 

269,384

 

 

240,708

 

 

9

 

 

Income tax expense

 

59,582

 

 

49,863

 

 

42,695

 

 

68,983

 

 

53,935

 

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

203,044

 

 

178,052

 

 

171,037

 

 

200,401

 

 

186,773

 

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Preferred stock dividends

 

8,291

 

 

8,291

 

 

8,291

 

 

8,291

 

 

8,291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

$

194,753

 

 

169,761

 

 

162,746

 

 

192,110

 

 

178,482

 

 

9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, basic

$

1.34

 

 

1.17

 

 

1.12

 

 

1.32

 

 

1.22

 

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, diluted

 

1.33

 

 

1.16

 

 

1.11

 

 

1.31

 

 

1.21

 

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

0.34

 

 

0.34

 

 

0.34

 

 

0.33

 

 

0.33

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets *

 

1.39

%

 

1.26

 

 

1.22

 

 

1.40

 

 

1.34

 

 

5 bps

 

 

Return on average common equity *

 

18.66

 

 

16.48

 

 

14.20

 

 

16.11

 

 

14.96

 

 

370

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

145,386

 

 

145,328

 

 

145,273

 

 

145,316

 

 

146,308

 

 

(1

)%

 

Weighted average common shares outstanding, diluted

 

146,418

 

 

146,315

 

 

146,665

 

 

146,793

 

 

147,701

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

nm - not meaningful

 

bps - basis points

 

* - ratios are annualized

 
 
 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET DATA

 

September 30,

2022

 

December 31,

2021

 

September 30,

2021

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Cash and due from banks

 

$

516,163

 

 

$

432,925

 

 

$

483,035

 

 

Interest-bearing funds with Federal Reserve Bank

 

 

1,260,748

 

 

 

2,479,006

 

 

 

2,103,497

 

 

Interest earning deposits with banks

 

 

32,445

 

 

 

25,535

 

 

 

23,261

 

 

Federal funds sold and securities purchased under resale agreements

 

 

58,448

 

 

 

72,387

 

 

 

77,627

 

 

Cash, cash equivalents, and restricted cash

 

 

1,867,804

 

 

 

3,009,853

 

 

 

2,687,420

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale, at fair value

 

 

9,587,508

 

 

 

10,918,329

 

 

 

10,481,071

 

 

Loans held for sale ($56,517, $108,198, and $152,258 measured at fair value, respectively)

 

 

696,450

 

 

 

750,642

 

 

 

550,948

 

 

 

 

 

 

 

 

 

 

Loans, net of deferred fees and costs

 

 

42,571,458

 

 

 

39,311,958

 

 

 

38,341,030

 

 

Allowance for loan losses

 

 

(421,359

)

 

 

(427,597

)

 

 

(492,243

)

 

Loans, net

 

 

42,150,099

 

 

 

38,884,361

 

 

 

37,848,787

 

 

 

 

 

 

 

 

 

 

Cash surrender value of bank-owned life insurance

 

 

1,084,060

 

 

 

1,068,616

 

 

 

1,065,256

 

 

Premises, equipment, and software, net

 

 

376,823

 

 

 

407,241

 

 

 

423,933

 

 

Goodwill

 

 

452,390

 

 

 

452,390

 

 

 

452,390

 

 

Other intangible assets, net

 

 

29,242

 

 

 

35,596

 

 

 

37,975

 

 

Other assets

 

 

2,395,146

 

 

 

1,790,198

 

 

 

1,961,349

 

 

Total assets

 

$

58,639,522

 

 

$

57,317,226

 

 

$

55,509,129

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

$

16,359,551

 

 

$

16,392,653

 

 

$

15,787,882

 

 

Interest-bearing deposits

 

 

31,338,013

 

 

 

33,034,623

 

 

 

31,900,537

 

 

 

 

 

 

 

 

 

 

Total deposits

 

 

47,697,564

 

 

 

49,427,276

 

 

 

47,688,419

 

 

 

 

 

 

 

 

 

 

Federal funds purchased and securities sold under repurchase agreements

 

 

240,210

 

 

 

264,133

 

 

 

262,548

 

 

Long-term debt

 

 

4,434,327

 

 

 

1,204,229

 

 

 

1,203,761

 

 

Other liabilities

 

 

2,037,706

 

 

 

1,124,788

 

 

 

1,101,599

 

 

Total liabilities

 

 

54,409,807

 

 

 

52,020,426

 

 

 

50,256,327

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

Preferred stock - no par value. Authorized 100,000,000 shares; issued 22,000,000

 

 

537,145

 

 

 

537,145

 

 

 

537,145

 

 

Common stock - $1.00 par value. Authorized 342,857,143 shares; issued 170,097,791, 169,383,758, and 169,170,589; outstanding 145,442,933, 145,010,086, and 145,483,994

 

 

170,098

 

 

 

169,384

 

 

 

169,171

 

 

Additional paid-in capital

 

 

3,916,729

 

 

 

3,894,109

 

 

 

3,883,289

 

 

Treasury stock, at cost – 24,654,858, 24,373,672, and 23,686,595 shares

 

 

(944,484

)

 

 

(931,497

)

 

 

(898,707

)

 

Accumulated other comprehensive income (loss), net

 

 

(1,534,314

)

 

 

(82,321

)

 

 

(5,462

)

 

Retained earnings

 

 

2,084,541

 

 

 

1,709,980

 

 

 

1,567,366

 

 

Total shareholders’ equity

 

 

4,229,715

 

 

 

5,296,800

 

 

 

5,252,802

 

 

Total liabilities and shareholders' equity

 

$

58,639,522

 

 

$

57,317,226

 

 

$

55,509,129

 

 
 
 

Synovus

AVERAGE BALANCES, INTEREST, AND YIELDS/RATES

(Unaudited)

 

Third Quarter 2022

 

Second Quarter 2022

 

Third Quarter 2021

(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)

$

32,836,799

 

 

$

384,995

 

4.65

%

 

$

31,870,387

 

 

$

308,442

 

3.88

%

 

$

28,984,837

 

 

$

285,445

 

3.91

%

Consumer loans (1) (2)

 

8,931,573

 

 

 

94,425

 

4.21

 

 

 

8,720,488

 

 

 

83,826

 

3.86

 

 

 

8,549,296

 

 

 

84,615

 

3.94

 

Less: Allowance for loan losses

 

(419,160

)

 

 

 

 

 

 

(415,372

)

 

 

 

 

 

 

(514,828

)

 

 

 

 

Loans, net

 

41,349,212

 

 

 

479,420

 

4.60

 

 

 

40,175,503

 

 

 

392,268

 

3.92

 

 

 

37,019,305

 

 

 

370,060

 

3.97

 

Investment securities available for sale

 

11,126,705

 

 

 

53,550

 

1.93

 

 

 

11,153,091

 

 

 

50,312

 

1.81

 

 

 

9,876,651

 

 

 

35,876

 

1.45

 

Trading account assets

 

16,771

 

 

 

81

 

1.93

 

 

 

11,987

 

 

 

73

 

2.44

 

 

 

5,192

 

 

 

15

 

1.15

 

Other earning assets(4)

 

1,012,717

 

 

 

5,791

 

2.24

 

 

 

813,028

 

 

 

1,660

 

0.81

 

 

 

3,271,501

 

 

 

1248

 

0.15

 

FHLB and Federal Reserve Bank stock

 

244,879

 

 

 

1,412

 

2.31

 

 

 

179,837

 

 

 

1,820

 

4.05

 

 

 

159,741

 

 

 

501

 

1.26

 

Mortgage loans held for sale

 

66,601

 

 

 

862

 

5.18

 

 

 

85,299

 

 

 

921

 

4.32

 

 

 

196,032

 

 

 

1,410

 

2.88

 

Other loans held for sale

 

892,805

 

 

 

11,155

 

4.89

 

 

 

725,762

 

 

 

7,678

 

4.19

 

 

 

527,736

 

 

 

4,130

 

3.06

 

Total interest earning assets

 

54,709,690

 

 

$

552,271

 

4.01

%

 

 

53,144,507

 

 

$

454,732

 

3.43

%

 

 

51,056,158

 

 

$

413,240

 

3.22

%

Cash and due from banks

 

557,537

 

 

 

 

 

 

 

538,647

 

 

 

 

 

 

 

611,783

 

 

 

 

 

Premises and equipment

 

383,189

 

 

 

 

 

 

 

385,457

 

 

 

 

 

 

 

447,046

 

 

 

 

 

Other real estate

 

2,398

 

 

 

 

 

 

 

11,439

 

 

 

 

 

 

 

1,513

 

 

 

 

 

Cash surrender value of bank-owned life insurance

 

1,080,914

 

 

 

 

 

 

 

1,077,231

 

 

 

 

 

 

 

1,061,478

 

 

 

 

 

Other assets(5)

 

1,322,251

 

 

 

 

 

 

 

1,379,659

 

 

 

 

 

 

 

2,148,282

 

 

 

 

 

Total assets

$

58,055,979

 

 

 

 

 

 

$

56,536,940

 

 

 

 

 

 

$

55,326,260

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$

8,436,922

 

 

$

5,782

 

0.27

%

 

$

9,513,334

 

 

$

3,598

 

0.15

%

 

$

8,463,325

 

 

$

2,192

 

0.10

%

Money market accounts

 

15,411,450

 

 

 

20,696

 

0.53

 

 

 

15,328,395

 

 

 

6,850

 

0.18

 

 

 

15,597,723

 

 

 

6,081

 

0.15

 

Savings deposits

 

1,508,312

 

 

 

84

 

0.02

 

 

 

1,506,195

 

 

 

72

 

0.02

 

 

 

1,377,089

 

 

 

60

 

0.02

 

Time deposits

 

2,270,163

 

 

 

2,428

 

0.42

 

 

 

2,829,684

 

 

 

1,688

 

0.24

 

 

 

3,424,028

 

 

 

3,572

 

0.41

 

Brokered deposits

 

3,899,669

 

 

 

17,927

 

1.82

 

 

 

2,878,536

 

 

 

6,293

 

0.88

 

 

 

2,859,123

 

 

 

4,181

 

0.58

 

Federal funds purchased and securities sold under repurchase agreements

 

240,412

 

 

 

641

 

1.04

 

 

 

246,737

 

 

 

219

 

0.35

 

 

 

202,525

 

 

 

36

 

0.07

 

Other short-term borrowings

 

702,443

 

 

 

3,666

 

2.04

 

 

 

478,469

 

 

 

896

 

0.74

 

 

 

 

 

 

 

 

Long-term debt

 

2,656,939

 

 

 

22,156

 

3.29

 

 

 

878,413

 

 

 

8,768

 

3.99

 

 

 

1,203,500

 

 

 

11,465

 

3.81

 

Total interest-bearing liabilities

 

35,126,310

 

 

$

73,380

 

0.81

%

 

 

33,659,763

 

 

$

28,384

 

0.33

%

 

 

33,127,313

 

 

$

27,587

 

0.33

%

Non-interest-bearing demand deposits

 

16,904,353

 

 

 

 

 

 

 

16,959,850

 

 

 

 

 

 

 

15,755,929

 

 

 

 

 

Other liabilities

 

1,346,655

 

 

 

 

 

 

 

1,247,646

 

 

 

 

 

 

 

1,171,119

 

 

 

 

 

Shareholders' equity

 

4,678,661

 

 

 

 

 

 

 

4,669,681

 

 

 

 

 

 

 

5,271,899

 

 

 

 

 

Total liabilities and shareholders' equity

$

58,055,979

 

 

 

 

 

 

$

56,536,940

 

 

 

 

 

 

$

55,326,260

 

 

 

 

 

Net interest income and net interest margin, taxable equivalent (6)

 

 

$

478,891

 

3.49

%

 

 

 

$

426,348

 

3.22

%

 

 

 

$

385,653

 

3.01

%

Less: taxable-equivalent adjustment

 

 

 

972

 

 

 

 

 

 

960

 

 

 

 

 

 

736

 

 

Net interest income

 

 

$

477,919

 

 

 

 

 

$

425,388

 

 

 

 

 

$

384,917

 

 

(1)

Average loans are shown net of deferred fees and costs. NPLs are included. 

(2)

Interest income includes net loan fees as follows: Third Quarter 2022 — $11.9 million, Second Quarter 2022 — $13.0 million, and Third Quarter 2021 — $30.4 million. 

(3)

Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans and investment securities 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 $(1.06) billion, $(923.1) million, and $66.6 million for the Third Quarter 2022, Second Quarter 2022, and Third Quarter 2021, respectively. 

(6)

The net interest margin is calculated by dividing annualized net interest income-taxable equivalent by average total interest earning assets. 

 
 
 

Synovus

AVERAGE BALANCES, INTEREST, AND YIELDS/RATES

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

2022

 

2021

(dollars in thousands)

Average Balance

 

Interest

 

Yield/

Rate

 

Average Balance

 

Interest

 

Yield/

Rate

Assets

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

Commercial loans (1) (2) (3)

$

31,828,932

 

 

$

974,024

 

4.09

%

 

$

29,611,970

 

 

$

864,322

 

3.90

%

Consumer loans (1) (2)

 

8,749,927

 

 

 

259,619

 

3.95

 

 

 

8,466,505

 

 

 

251,081

 

3.95

 

Less: Allowance for loan losses

 

(419,478

)

 

 

 

 

 

 

(558,336

)

 

 

 

 

Loans, net

 

40,159,381

 

 

 

1,233,643

 

4.11

 

 

 

37,520,139

 

 

 

1,115,403

 

3.97

 

Investment securities available for sale

 

11,179,378

 

 

 

151,111

 

1.80

 

 

 

9,171,573

 

 

 

98,631

 

1.43

 

Trading account assets

 

12,640

 

 

 

193

 

2.04

 

 

 

3,703

 

 

 

44

 

1.60

 

Other earning assets(4)

 

1,245,102

 

 

 

8,267

 

0.88

 

 

 

2,940,049

 

 

 

2,705

 

0.12

 

FHLB and Federal Reserve Bank stock

 

195,238

 

 

 

3,917

 

2.67

 

 

 

158,921

 

 

 

1,971

 

1.65

 

Mortgage loans held for sale

 

85,126

 

 

 

2,665

 

4.17

 

 

 

228,458

 

 

 

4,926

 

2.87

 

Other loans held for sale

 

739,627

 

 

 

24,133

 

4.30

 

 

 

600,776

 

 

 

13,685

 

3.00

 

Total interest earning assets

 

53,616,492

 

 

$

1,423,929

 

3.55

%

 

 

50,623,619

 

 

$

1,237,365

 

3.27

%

Cash and due from banks

 

548,322

 

 

 

 

 

 

 

567,702

 

 

 

 

 

Premises and equipment

 

389,083

 

 

 

 

 

 

 

453,339

 

 

 

 

 

Other real estate

 

8,498

 

 

 

 

 

 

 

1,579

 

 

 

 

 

Cash surrender value of bank-owned life insurance

 

1,076,381

 

 

 

 

 

 

 

1,056,257

 

 

 

 

 

Other assets(5)

 

1,515,226

 

 

 

 

 

 

 

2,145,850

 

 

 

 

 

Total assets

$

57,154,002

 

 

 

 

 

 

$

54,848,346

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$

9,162,519

 

 

$

11,752

 

0.17

%

 

$

8,544,720

 

 

$

7,606

 

0.12

%

Money market accounts

 

15,592,834

 

 

 

32,896

 

0.28

 

 

 

15,475,212

 

 

 

21,994

 

0.19

 

Savings deposits

 

1,491,893

 

 

 

223

 

0.02

 

 

 

1,310,470

 

 

 

164

 

0.02

 

Time deposits

 

2,700,505

 

 

 

6,254

 

0.31

 

 

 

3,787,892

 

 

 

15,507

 

0.55

 

Brokered deposits

 

3,192,848

 

 

 

27,952

 

1.17

 

 

 

3,093,485

 

 

 

15,204

 

0.66

 

Federal funds purchased and securities sold under repurchase agreements

 

227,335

 

 

 

871

 

0.51

 

 

 

205,316

 

 

 

104

 

0.07

 

Other short-term borrowings

 

397,744

 

 

 

4,561

 

1.51

 

 

 

 

 

 

 

 

Long-term debt

 

1,512,059

 

 

 

41,069

 

3.61

 

 

 

1,203,054

 

 

 

33,851

 

3.75

 

Total interest-bearing liabilities

 

34,277,737

 

 

$

125,578

 

0.48

%

 

 

33,620,149

 

 

$

94,430

 

0.37

%

Non-interest-bearing demand deposits

 

16,786,794

 

 

 

 

 

 

 

14,885,880

 

 

 

 

 

Other liabilities

 

1,247,020

 

 

 

 

 

 

 

1,149,209

 

 

 

 

 

Shareholders' equity

 

4,842,451

 

 

 

 

 

 

 

5,193,108

 

 

 

 

 

Total liabilities and shareholders' equity

$

57,154,002

 

 

 

 

 

 

$

54,848,346

 

 

 

 

 

Net interest income, taxable equivalent net interest margin (6)

 

 

$

1,298,351

 

3.24

%

 

 

 

$

1,142,935

 

3.02

%

Less: taxable-equivalent adjustment

 

 

 

2,796

 

 

 

 

 

 

2,301

 

 

Net interest income

 

 

$

1,295,555

 

 

 

 

 

$

1,140,634

 

 

(1)

Average loans are shown net of deferred fees and costs. NPLs are included.

(2)

Interest income includes net loan fees as follows: 2022 — $45.6 million and 2021 — $90.8 million. 

(3)

Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans and investment securities 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 $(747.7) million and $73.1 million for the nine months ended September 30, 2022 and 2021, respectively. 

(6)

The net interest margin is calculated by dividing net interest income-taxable equivalent by average total interest earning assets. 

 
 
 

Synovus

LOANS OUTSTANDING BY TYPE

(Unaudited)

 

Total Loans

 

Total Loans

 

Linked Quarter

 

Total Loans

 

Year/Year

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

Loan Type

 

September 30, 2022

 

June 30, 2022

 

% Change

 

September 30, 2021

 

% Change

Commercial, Financial, and Agricultural

 

$

13,254,966

 

$

13,018,089

 

2

%

 

$

11,864,362

 

12

%

Owner-Occupied

 

 

7,957,550

 

 

7,760,236

 

3

 

 

 

7,129,926

 

12

 

Total Commercial & Industrial

 

 

21,212,516

 

 

20,778,325

 

2

 

 

 

18,994,288

 

12

 

Multi-Family

 

 

2,949,172

 

 

2,547,706

 

16

 

 

 

2,197,139

 

34

 

Hotels

 

 

1,712,016

 

 

1,597,930

 

7

 

 

 

1,441,414

 

19

 

Office Buildings

 

 

2,945,771

 

 

2,680,399

 

10

 

 

 

2,341,316

 

26

 

Shopping Centers

 

 

1,441,385

 

 

1,458,902

 

(1

)

 

 

1,570,020

 

(8

)

Warehouses

 

 

943,961

 

 

811,738

 

16

 

 

 

687,496

 

37

 

Other Investment Property

 

 

1,246,099

 

 

1,311,373

 

(5

)

 

 

1,244,904

 

 

Total Investment Properties

 

 

11,238,404

 

 

10,408,048

 

8

 

 

 

9,482,289

 

19

 

1-4 Family Construction

 

 

249,840

 

 

234,379

 

7

 

 

 

191,906

 

30

 

1-4 Family Investment Mortgage

 

 

389,787

 

 

407,476

 

(4

)

 

 

421,968

 

(8

)

Total 1-4 Family Properties

 

 

639,627

 

 

641,855

 

 

 

 

613,874

 

4

 

Commercial Development

 

 

92,159

 

 

109,764

 

(16

)

 

 

103,512

 

(11

)

Residential Development

 

 

119,019

 

 

156,816

 

(24

)

 

 

186,033

 

(36

)

Land Acquisition

 

 

198,756

 

 

186,934

 

6

 

 

 

188,378

 

6

 

Land and Development

 

 

409,934

 

 

453,514

 

(10

)

 

 

477,923

 

(14

)

Total Commercial Real Estate

 

 

12,287,965

 

 

11,503,417

 

7

 

 

 

10,574,086

 

16

 

Consumer Mortgages

 

 

5,166,928

 

 

5,124,523

 

1

 

 

 

5,108,457

 

1

 

Home Equity

 

 

1,708,246

 

 

1,579,218

 

8

 

 

 

1,359,688

 

26

 

Credit Cards

 

 

197,978

 

 

194,290

 

2

 

 

 

199,700

 

(1

)

Other Consumer Loans

 

 

1,997,825

 

 

2,025,007

 

(1

)

 

 

2,104,811

 

(5

)

Total Consumer

 

 

9,070,977

 

 

8,923,038

 

2

 

 

 

8,772,656

 

3

 

Total

 

$

42,571,458

 

$

41,204,780

 

3

%

 

$

38,341,030

 

11

%

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING LOANS COMPOSITION

(Unaudited)

 

Total

Non-performing Loans

 

Total

Non-performing Loans

 

Linked Quarter

 

Total

Non-performing Loans

 

Year/Year

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

Loan Type

 

September 30, 2022

 

June 30, 2022

 

% Change

 

September 30, 2021

 

% Change

Commercial, Financial, and Agricultural

 

$

59,275

 

$

48,601

 

22

%

 

$

77,349

 

(23

) %

Owner-Occupied

 

 

8,433

 

 

11,398

 

(26

)

 

 

13,134

 

(36

)

Total Commercial & Industrial

 

 

67,708

 

 

59,999

 

13

 

 

 

90,483

 

(25

)

Multi-Family

 

 

2,550

 

 

2,598

 

(2

)

 

 

2,396

 

6

 

Office Buildings

 

 

884

 

 

1,796

 

(51

)

 

 

2,488

 

(64

)

Shopping Centers

 

 

742

 

 

750

 

(1

)

 

 

932

 

(20

)

Warehouses

 

 

223

 

 

924

 

(76

)

 

 

302

 

(26

)

Other Investment Property

 

 

641

 

 

1,302

 

(51

)

 

 

624

 

3

 

Total Investment Properties

 

 

5,040

 

 

7,370

 

(32

)

 

 

6,742

 

(25

)

1-4 Family Construction

 

 

55

 

 

55

 

 

 

 

522

 

(89

)

1-4 Family Investment Mortgage

 

 

3,036

 

 

3,063

 

(1

)

 

 

2,364

 

28

 

Total 1-4 Family Properties

 

 

3,091

 

 

3,118

 

(1

)

 

 

2,886

 

7

 

Commercial Development

 

 

422

 

 

432

 

(2

)

 

 

463

 

(9

)

Residential Development

 

 

267

 

 

399

 

(33

)

 

 

449

 

(41

)

Land Acquisition

 

 

980

 

 

1,093

 

(10

)

 

 

1,024

 

(4

)

Land and Development

 

 

1,669

 

 

1,924

 

(13

)

 

 

1,936

 

(14

)

Total Commercial Real Estate

 

 

9,800

 

 

12,412

 

(21

)

 

 

11,564

 

(15

)

Consumer Mortgages

 

 

32,527

 

 

22,857

 

42

 

 

 

37,541

 

(13

)

Home Equity

 

 

7,121

 

 

8,100

 

(12

)

 

 

8,702

 

(18

)

Other Consumer Loans

 

 

4,938

 

 

5,656

 

(13

)

 

 

7,175

 

(31

)

Total Consumer

 

 

44,586

 

 

36,613

 

22

 

 

 

53,418

 

(17

)

Total

 

$

122,094

 

$

109,024

 

12

%

 

$

155,465

 

(21

) %

   
   
   

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY DATA

 

(Unaudited)

 

(Dollars in thousands)

2022

 

2021

 

Third

Quarter

 

 

 

Third

 

Second

 

First

 

Fourth

 

Third

 

'22 vs '21

 

 

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Loans (NPLs)

 

$

122,094

 

 

109,024

 

132,131

 

131,042

 

155,465

 

(21

) %

 

Impaired Loans Held for Sale

 

 

447

 

 

 

 

 

 

nm

 

 

Other Real Estate and Other Assets

 

 

15,320

 

 

26,759

 

26,759

 

27,137

 

16,883

 

(9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Assets (NPAs)

 

 

137,861

 

 

135,783

 

158,890

 

158,179

 

172,348

 

(20

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses (ALL)

 

 

421,359

 

 

407,837

 

414,956

 

427,597

 

492,243

 

(14

)

 

Reserve for Unfunded Commitments

 

 

57,936

 

 

50,559

 

47,317

 

41,885

 

42,971

 

35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses (ACL)

 

 

479,295

 

 

458,396

 

462,273

 

469,482

 

535,214

 

(10

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Charge-Offs - Quarter

 

 

4,682

 

 

16,565

 

18,609

 

10,522

 

20,516

 

 

 

 

Net Charge-Offs - YTD

 

 

39,856

 

 

35,174

 

18,609

 

77,788

 

67,266

 

 

 

 

Net Charge-Offs / Average Loans - Quarter (1)

 

 

0.04

%

 

0.16

 

0.19

 

0.11

 

0.22

 

 

 

 

Net Charge-Offs / Average Loans - YTD (1)

 

 

0.13

 

 

0.18

 

0.19

 

0.20

 

0.24

 

 

 

 

NPLs / Loans

 

 

0.29

 

 

0.26

 

0.33

 

0.33

 

0.41

 

 

 

 

NPAs / Loans, ORE and specific other assets

 

 

0.32

 

 

0.33

 

0.40

 

0.40

 

0.45

 

 

 

 

ACL/Loans

 

 

1.13

 

 

1.11

 

1.15

 

1.19

 

1.40

 

 

 

 

ALL/Loans

 

 

0.99

 

 

0.99

 

1.03

 

1.09

 

1.28

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACL/NPLs

 

 

392.56

 

 

420.45

 

349.86

 

358.27

 

344.27

 

 

 

 

ALL/NPLs

 

 

345.11

 

 

374.08

 

314.05

 

326.31

 

316.63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past Due Loans over 90 days and Still Accruing

 

$

3,443

 

 

2,251

 

3,067

 

6,770

 

5,960

 

(42

)

 

As a Percentage of Loans Outstanding

 

 

0.01

%

 

0.01

 

0.01

 

0.02

 

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Past Due Loans and Still Accruing

 

$

63,545

 

 

56,160

 

45,385

 

57,565

 

60,817

 

4

 

 

As a Percentage of Loans Outstanding

 

 

0.15

%

 

0.14

 

0.11

 

0.15

 

0.16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing Troubled Debt Restructurings (TDRs)

 

$

118,755

 

 

164,101

 

145,957

 

119,804

 

126,055

 

(6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Ratio is annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED CAPITAL INFORMATION (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

2022

 

December 31,

2021

 

September 30,

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Capital Ratio

 

 

9.51

%

 

9.50

 

9.58

 

 

 

 

 

 

 

 

Tier 1 Capital Ratio

 

 

10.58

 

 

10.66

 

10.79

 

 

 

 

 

 

 

 

Total Risk-Based Capital Ratio

 

 

12.44

 

 

12.61

 

12.92

 

 

 

 

 

 

 

 

Tier 1 Leverage Ratio

 

 

9.04

 

 

8.72

 

8.78

 

 

 

 

 

 

 

 

Total Shareholders' Equity as a Percentage of Total Assets

 

 

7.21

 

 

9.24

 

9.46

 

 

 

 

 

 

 

 

Tangible Common Equity Ratio (2) (4)

 

 

5.52

 

 

7.52

 

7.68

 

 

 

 

 

 

 

 

Book Value Per Common Share (3)

 

$

25.39

 

 

32.82

 

32.41

 

 

 

 

 

 

 

 

Tangible Book Value Per Common Share (2)

 

 

22.08

 

 

29.46

 

29.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 Shareholders' Equity less Preferred Stock divided by total common shares outstanding.

 

(4) See "Non-GAAP Financial Measures" of this report for applicable reconciliation.

   
   

 

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