Synovus Announces Earnings for the First Quarter 2021

Diluted Earnings per Share of $1.19 vs. $0.20 in 1Q20

Adjusted Diluted Earnings per Share of $1.21 vs. $0.21 in 1Q20

COLUMBUS, Ga.--()--Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended March 31, 2021.

First Quarter 2021 Highlights

  • Net income available to common shareholders of $178.8 million or $1.19 per diluted share, up $0.23 sequentially and $0.99 compared to prior year.
    • Adjusted diluted EPS of $1.21, up $0.13 sequentially and $1.00 compared to prior year.
  • Period-end loans increased $552.1 million or 1% sequentially.
    • Paycheck Protection Program (PPP) loans increased $170.1 million and third-party consumer loan balances, including a prime auto purchase of $476 million, increased $503.2 million sequentially.
  • Core transaction deposits (non-interest bearing, NOW/savings, and money market deposits excluding public and brokered funds) increased $2.05 billion or 6% sequentially.
  • Total deposit costs of 0.22% down 6 bps sequentially due to ongoing repricing and product remixing.
  • Net interest income of $373.9 million declined $12.1 million sequentially as lower deposit costs and deployment of excess liquidity partially offset a lower day count, continued fixed-rate asset repricing, and accelerated prepayment activity.
    • Net interest margin of 3.04% vs 3.12% sequentially.
  • Non-interest revenue declined $3.8 million sequentially and increased $7.1 million compared to prior year.
    • Adjusted non-interest revenue increased $0.6 million sequentially as broad-based growth helped offset normalization of net mortgage revenue.
  • Non-interest expense declined $35.4 million sequentially and $9.1 million compared to prior year.
    • Adjusted non-interest expense declined $8.5 million sequentially led by reduction in professional fees, partially offset by seasonal increases in payroll taxes and benefits.
  • Reversal of provision for credit losses of $18.6 million, primarily from a more favorable economic outlook.
    • Allowance for credit losses coverage ratio (to loans) of 1.58%, or 1.69% excluding PPP loans.
  • Credit quality metrics remain relatively stable with a net charge-off ratio of 0.21%; non-performing assets, non-performing loans, and past dues remained near prior cycle lows.
  • Preliminary CET1 ratio increased 8 bps sequentially to 9.74%, with strong core earnings helping offset a $1.20 billion increase in risk-weighted assets.
  • In April, executed share repurchases of approximately $10 million as part of the $200 million authorization for 2021.

First Quarter Summary

 

Reported

 

Adjusted

(dollars in thousands)

1Q21

 

4Q20

 

1Q20

 

1Q21

 

4Q20

 

1Q20

Net income available to common shareholders

$

178,802

 

 

$

142,118

 

 

$

30,230

 

 

$

180,685

 

 

$

160,618

 

 

$

30,708

 

Diluted earnings per share

1.19

 

 

0.96

 

 

0.20

 

 

1.21

 

 

1.08

 

 

0.21

 

Total loans

38,805,101

 

 

38,252,984

 

 

38,258,024

 

 

N/A

 

 

N/A

 

 

N/A

 

Total deposits

47,368,951

 

 

46,691,571

 

 

39,826,585

 

 

N/A

 

 

N/A

 

 

N/A

 

Total FTE revenue

485,587

 

 

501,514

 

 

477,903

 

 

487,577

 

 

499,114

 

 

473,424

 

Return on avg assets

1.40

%

 

1.11

%

 

0.32

%

 

1.41

%

 

1.25

%

 

0.32

%

Return on avg common equity

15.77

 

 

12.31

 

 

2.75

 

 

15.93

 

 

13.91

 

 

2.79

 

Return on avg tangible common equity

17.85

 

 

14.00

 

 

3.34

 

 

18.04

 

 

15.79

 

 

3.39

 

Net interest margin

3.04

 

 

3.12

 

 

3.37

 

 

N/A

 

 

N/A

 

 

N/A

 

Efficiency ratio

55.01

 

 

60.32

 

 

57.81

 

 

54.19

 

 

54.60

 

 

56.72

 

NCO ratio

0.21

 

 

0.23

 

 

0.21

 

 

N/A

 

 

N/A

 

 

N/A

 

NPA ratio

0.50

 

 

0.50

 

 

0.50

 

 

N/A

 

 

N/A

 

 

N/A

 

“Our results in the first quarter of 2021 reflect strong financial performance as we continue to position the company for long-term growth,” said Kessel Stelling, Synovus Chairman and CEO. “Solid earnings drove capital growth, core transaction deposits grew $2 billion from the previous quarter, credit quality remained strong, and our efficiency initiatives enabled additional investments in improving the customer experience. We continued to support our customers and communities through the Paycheck Protection Program in the first quarter, including approximately $1 billion in phase two fundings. As the economic recovery accelerates and Kevin Blair steps in as CEO, the energy and optimism among our team are high, and I have never been more confident in our future.”

Kevin Blair, Synovus President and COO, said, “I’m honored for the opportunity to lead this exceptional team, and to build upon our strong foundation in driving growth as we deliver differentiated, value-adding solutions and advice to attract and build relationships with our clients.”

Balance Sheet

Loans*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

1Q21

 

4Q20

 

Linked
Quarter
Change

 

Linked
Quarter %
Change

 

1Q20

 

Year/Year
Change

 

Year/Year
% Change

Commercial & industrial

$

19,693.8

 

 

$

19,520.2

 

 

$

173.7

 

 

1

%

 

$

17,810.3

 

 

$

1,883.5

 

 

11

%

Commercial real estate

10,533.9

 

 

10,325.7

 

 

208.2

 

 

2

 

 

10,475.4

 

 

58.6

 

 

1

 

Consumer

8,577.3

 

 

8,407.1

 

 

170.2

 

 

2

 

 

9,972.3

 

 

(1,395.0

)

 

(14

Total loans

$

38,805.1

 

 

$

38,253.0

 

 

$

552.1

 

 

1

%

 

$

38,258.0

 

 

$

547.1

 

 

1

%

 

*Amounts may not total due to rounding

 
  • Total loans ended the quarter at $38.81 billion, up $552.1 million or 1% sequentially.
  • Commercial and industrial (C&I) loan growth of $173.7 million sequentially.
    • Total PPP loans increased by $170.1 million.
      • Phase 1 forgiveness of $711 million, or $687 million net of unearned, and Phase 2 fundings of $894 million, or $857 million net of unearned.
    • C&I line utilization remains near historic lows ~40%.
  • CRE loans increased $208.2 million as the recovery in commercial real estate continues.
  • Consumer loans increased $170.2 million sequentially, with a prime auto portfolio purchase of $476 million partially offset by declines in consumer mortgages and HELOCs of $214.3 million and $105.4 million, respectively.

Deposits*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

1Q21

 

4Q20

 

Linked
Quarter
Change

 

Linked
Quarter %
Change

 

1Q20

 

Year/Year
Change

 

Year/Year
% Change

Non-interest-bearing DDA

$

13,742.1

 

 

$

12,382.7

 

 

$

1,359.4

 

 

11

%

 

$

8,968.8

 

 

$

4,773.3

 

 

53

%

Interest-bearing DDA

5,841.7

 

 

5,674.4

 

 

167.3

 

 

3

 

 

4,617.4

 

 

1,224.4

 

 

27

 

Money market

13,943.7

 

 

13,541.2

 

 

402.5

 

 

3

 

 

10,255.0

 

 

3,688.7

 

 

36

 

Savings

1,277.0

 

 

1,156.2

 

 

120.8

 

 

10

 

 

949.5

 

 

327.6

 

 

35

 

Public funds

6,154.9

 

 

6,760.6

 

 

(605.7

)

 

(9

)

 

5,261.4

 

 

893.6

 

 

17

 

Time deposits

3,214.8

 

 

3,605.9

 

 

(391.2

)

 

(11

)

 

5,786.6

 

 

(2,571.9

)

 

(44

)

Brokered deposits

3,194.7

 

 

3,570.4

 

 

(375.7

)

 

(11

)

 

3,987.9

 

 

(793.3

)

 

(20

)

Total deposits

$

47,369.0

 

 

$

46,691.6

 

 

$

677.4

 

 

1

%

 

$

39,826.6

 

 

$

7,542.4

 

 

19

%

 

*Amounts may not total due to rounding

 
  • Total deposits ended the quarter at $47.37 billion, up $677.4 million or 1% sequentially.
  • Core transaction deposits increased $2.05 billion or 6% sequentially.
    • Broad-based growth in all categories including MMA, DDA, NOW, and savings supported declines in higher cost deposits.
  • Total deposit costs declined 6 bps to 0.22% sequentially.

Income Statement Summary**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data)

1Q21

 

4Q20

 

Linked
Quarter
Change

 

Linked
Quarter %
Change

 

1Q20

 

Year/Year
Change

 

Year/Year
% Change

Net interest income

$

373,857

 

 

$

385,932

 

 

$

(12,075

)

 

(3

)%

 

$

373,260

 

 

$

597

 

 

%

Non-interest revenue

110,956

 

 

114,761

 

 

(3,805

)

 

(3

)

 

103,857

 

 

7,099

 

 

7

 

Non-interest expense

267,134

 

 

302,498

 

 

(35,364

)

 

(12

)

 

276,279

 

 

(9,145

)

 

(3

)

(Reversal of) provision for credit losses

(18,575

)

 

11,066

 

 

(29,641

)

 

nm

 

 

158,722

 

 

(177,297

)

 

nm

 

Income before taxes

$

236,254

 

 

$

187,129

 

 

$

49,125

 

 

26

%

 

$

42,116

 

 

$

194,138

 

 

461

%

Income tax expense

49,161

 

 

36,720

 

 

12,441

 

 

34

 

 

3,595

 

 

45,566

 

 

nm

 

Preferred stock dividends

8,291

 

 

8,291

 

 

 

 

 

 

8,291

 

 

 

 

 

Net income available to common shareholders

$

178,802

 

 

$

142,118

 

 

$

36,684

 

 

26

%

 

$

30,230

 

 

$

148,572

 

 

491

%

Weighted average common shares outstanding, diluted

149,780

 

 

148,725

 

 

1,055

 

 

1

%

 

148,401

 

 

1,379

 

 

1

%

Diluted earnings per share

$

1.19

 

 

$

0.96

 

 

$

0.23

 

 

25

 

 

$

0.20

 

 

$

0.99

 

 

486

 

Adjusted diluted earnings per share

1.21

 

 

1.08

 

 

0.13

 

 

12

 

 

0.21

 

 

1.00

 

 

483

 

 

** Amounts may not total due to rounding

 

Core Performance

  • Net interest income of $373.9 million in the first quarter, down $12.1 million sequentially as lower deposit costs and deployment of excess liquidity helped offset declines from continued fixed-rate repricing and accelerated prepayment activity.
    • Net PPP fee accretion of $24.9 million, up $0.1 million sequentially.
    • Net interest margin was 3.04%, down 8 bps sequentially.
  • Non-interest revenue decreased $3.8 million, or 3% sequentially, and increased $7.1 million, or 7% compared to prior year. Adjusted non-interest revenue increased $0.6 million, or 1% sequentially, and $13.6 million, or 14% compared to prior year.
    • Broad-based growth including $3.2 million in capital markets income helped offset normalization of net mortgage revenue, which declined $2.1 million sequentially.
  • Non-interest expense decreased $35.4 million, or 12% sequentially. Adjusted non-interest expense decreased $8.5 million, or 3% sequentially.
    • Seasonal increases in employment-related expenses such as payroll taxes and benefits more than offset by lower headcount and day count as well as lower professional fees associated with Synovus Forward and COVID/PPP.
  • Reversal of provision for credit losses of $18.6 million; allowance for credit losses coverage ratio (to loans) of 1.58%, or 1.69% excluding PPP loans.
  • Tax expense was $49.2 million, an increase of $12.4 million driven by higher taxable income.
    • Effective tax rate of 20.81%.

Capital Ratios

 

 

 

 

 

 

 

 

1Q21

 

4Q20

 

1Q20

Common equity Tier 1 capital (CET1) ratio

9.74

%

*

9.66

%

 

8.70

%

Tier 1 capital ratio

10.99

 

*

10.95

 

 

9.95

 

Total risk-based capital ratio

13.34

 

*

13.42

 

 

12.29

 

Tier 1 leverage ratio

8.80

 

*

8.50

 

 

8.92

 

Tangible common equity ratio

7.55

 

 

7.66

 

 

7.94

 

 

* Ratios are preliminary.

 

Capital

  • CET1 ratio improved 8 bps during the quarter to 9.74% as strong core performance helped offset a $1.20 billion increase in risk-weighted assets.
  • Total risk-based capital ratio of 13.34% declined 8 bps from the prior quarter following a reduction in the ACL.

First Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on April 20, 2021. 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 $55 billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services through 288 branches in Alabama, Florida, Georgia, South Carolina, and Tennessee. Synovus Bank, a wholly owned subsidiary of Synovus, has been recognized as one of the country's “Most Reputable Banks” by American Banker and the Reputation Institute. Synovus is on the web at synovus.com, and on Twitter, Facebook, LinkedIn, and Instagram.

Forward-Looking Statements

This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements through Synovus’ use of words such as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the future or otherwise regarding the outlook for Synovus’ future business and financial performance and/or the performance of the banking industry and economy in general. These forward-looking statements include, among others, our expectations regarding our future operating and financial performance; our expectations regarding net interest income and net interest margin; 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, 2020, under the captions “Cautionary Notice Regarding Forward-Looking Statements” and “Risk Factors” and in Synovus’ quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as otherwise may be required by law.

Non-GAAP Financial Measures

The measures entitled adjusted non-interest revenue; adjusted non-interest expense; total adjusted revenue; adjusted tangible efficiency ratio; adjusted net income available to common shareholders; adjusted diluted earnings per share; adjusted return on average assets; adjusted return on average common equity; return on average tangible common equity; adjusted return on average tangible common equity; and tangible common equity ratio are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are total non-interest revenue; total non-interest expense; total FTE revenue; efficiency ratio-FTE; 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. Total adjusted revenue and adjusted non-interest revenue are measures used by management to evaluate total FTE revenue and non-interest revenue exclusive of net investment securities gains (losses) and changes in the fair value of private equity investments, net. Adjusted non-interest expense and the adjusted tangible efficiency ratio are measures utilized by management to measure the success of expense management initiatives focused on reducing recurring controllable operating costs. Adjusted net income available to common shareholders, adjusted 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)

1Q21

 

4Q20

 

1Q20

Adjusted non-interest revenue

 

 

 

 

 

Total non-interest revenue

$

110,956

 

 

$

114,761

 

 

$

103,857

 

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

1,990

 

 

(2,337

)

 

(8,734

)

Subtract/add: Fair value (increase) decrease of private equity investments

 

 

(63

)

 

4,255

 

Adjusted non-interest revenue

$

112,946

 

 

$

112,361

 

 

$

99,378

 

 

 

 

 

 

 

Adjusted non-interest expense

 

 

 

 

 

Total non-interest expense

$

267,134

 

 

$

302,498

 

 

$

276,279

 

Subtract: Restructuring charges

(531

)

 

(18,068

)

 

(3,220

)

Subtract: Valuation adjustment to Visa derivative

 

 

(890

)

 

 

Subtract: Loss on early extinguishment of debt

 

 

(8,409

)

 

(1,904

)

Adjusted non-interest expense

$

266,603

 

 

$

275,131

 

 

$

271,155

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

1Q21

 

4Q20

 

1Q20

Total adjusted revenue and adjusted tangible efficiency ratio

 

 

 

 

 

Adjusted non-interest expense

$

266,603

 

 

$

275,131

 

 

$

271,155

 

Subtract: Amortization of intangibles

(2,379

)

 

(2,640

)

 

(2,640

)

Adjusted tangible non-interest expense

$

264,224

 

 

$

272,491

 

 

$

268,515

 

 

 

 

 

 

 

Net interest income

$

373,857

 

 

$

385,932

 

 

$

373,260

 

Add: Tax equivalent adjustment

774

 

 

821

 

 

786

 

Add: Total non-interest revenue

110,956

 

 

114,761

 

 

103,857

 

Total FTE revenue

485,587

 

 

501,514

 

 

477,903

 

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

1,990

 

 

(2,337

)

 

(8,734

)

Subtract/add: Fair value (increase) decrease of private equity investments

 

 

(63

)

 

4,255

 

Total adjusted revenue

$

487,577

 

 

$

499,114

 

 

$

473,424

 

Efficiency ratio-FTE

55.01

%

 

60.32

%

 

57.81

%

Adjusted tangible efficiency ratio

54.19

 

 

54.60

 

 

56.72

 

Adjusted return on average assets

 

 

 

 

 

Net income

$

187,093

 

 

$

150,409

 

 

$

38,521

 

Add: Restructuring charges

531

 

 

18,068

 

 

3,220

 

Add: Valuation adjustment to Visa derivative

 

 

890

 

 

 

Add: Loss on early extinguishment of debt

 

 

8,409

 

 

1,904

 

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

1,990

 

 

(2,337

)

 

(8,734

)

Subtract/add: Fair value (increase) decrease of private equity investments

 

 

(63

)

 

4,255

 

Subtract: Tax effect of adjustments (1)

(638

)

 

(6,467

)

 

(167

)

Adjusted net income

$

188,976

 

 

$

168,909

 

 

$

38,999

 

Net income annualized

$

758,766

 

 

$

598,366

 

 

$

154,931

 

Adjusted net income annualized

$

766,403

 

 

$

671,964

 

 

$

156,853

 

Total average assets

$

54,188,504

 

 

$

53,833,909

 

 

$

48,696,595

 

Return on average assets

1.40

%

 

1.11

%

 

0.32

%

Adjusted return on average assets

1.41

 

 

1.25

 

 

0.32

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

Net income available to common shareholders

$

178,802

 

 

$

142,118

 

 

$

30,230

 

Add: Restructuring charges

531

 

 

18,068

 

 

3,220

 

Add: Valuation adjustment to Visa derivative

 

 

890

 

 

 

Add: Loss on early extinguishment of debt

 

 

8,409

 

 

1,904

 

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

1,990

 

 

(2,337

)

 

(8,734

)

Subtract/add: Fair value (increase) decrease of private equity investments

 

 

(63

)

 

4,255

 

Subtract: Tax effect of adjustments (1)

(638

)

 

(6,467

)

 

(167

)

Adjusted net income available to common shareholders

$

180,685

 

 

$

160,618

 

 

$

30,708

 

Weighted average common shares outstanding, diluted

149,780

 

 

148,725

 

 

148,401

 

Diluted earnings per share

$

1.19

 

 

$

0.96

 

 

$

0.20

 

Adjusted diluted earnings per share

1.21

 

 

1.08

 

 

0.21

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

(dollars in thousands)

1Q21

 

4Q20

 

1Q20

 

 

 

 

 

 

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

$

178,802

 

 

$

142,118

 

 

$

30,230

 

Add: Restructuring charges

531

 

 

18,068

 

 

3,220

 

Add: Valuation adjustment to Visa derivative

 

 

890

 

 

 

Add: Loss on early extinguishment of debt

 

 

8,409

 

 

1,904

 

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

1,990

 

 

(2,337

)

 

(8,734

)

Subtract/add: Fair value (increase) decrease of private equity investments

 

 

(63

)

 

4,255

 

Subtract: Tax effect of adjustments (1)

(638

)

 

(6,467

)

 

(167

)

Adjusted net income available to common shareholders

$

180,685

 

 

$

160,618

 

 

$

30,708

 

 

 

 

 

 

 

Adjusted net income available to common shareholders annualized

$

732,778

 

 

$

638,980

 

 

$

123,507

 

Add: Amortization of intangibles, annualized net of tax

7,207

 

 

7,782

 

 

7,868

 

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

$

739,985

 

 

$

646,762

 

 

$

131,375

 

 

 

 

 

 

 

Net income available to common shareholders annualized

$

725,141

 

 

$

565,382

 

 

$

121,584

 

Add: Amortization of intangibles, annualized net of tax

7,207

 

 

7,782

 

 

7,868

 

Net income available to common shareholders excluding amortization of intangibles annualized

$

732,348

 

 

$

573,164

 

 

$

129,452

 

 

 

 

 

 

 

Total average shareholders' equity less preferred stock

$

4,599,076

 

 

$

4,594,199

 

 

$

4,424,278

 

Subtract: Goodwill

(452,390

)

 

(452,390

)

 

(497,267

)

Subtract: Other intangible assets, net

(44,005

)

 

(46,511

)

 

(54,514

)

Total average tangible shareholders' equity less preferred stock

$

4,102,681

 

 

$

4,095,298

 

 

$

3,872,497

 

Return on average common equity

15.77

%

 

12.31

%

 

2.75

%

Adjusted return on average common equity

15.93

 

 

13.91

 

 

2.79

 

Return on average tangible common equity

17.85

 

 

14.00

 

 

3.34

 

Adjusted return on average tangible common equity

18.04

 

 

15.79

 

 

3.39

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

March 31,
2021

 

December 31,
2020

 

March 31,
2020

 

 

 

 

 

 

Tangible common equity ratio

 

 

 

 

 

Total assets

$

55,159,011

 

 

$

54,394,159

 

 

$

50,619,585

 

Subtract: Goodwill

(452,390

)

 

(452,390

)

 

(497,267

)

Subtract: Other intangible assets, net

(42,733

)

 

(45,112

)

 

(53,032

)

Tangible assets

$

54,663,888

 

 

$

53,896,657

 

 

$

50,069,286

 

 

 

 

 

 

 

Total shareholders’ equity

$

5,161,717

 

 

$

5,161,334

 

 

$

5,065,205

 

Subtract: Goodwill

(452,390

)

 

(452,390

)

 

(497,267

)

Subtract: Other intangible assets, net

(42,733

)

 

(45,112

)

 

(53,032

)

Subtract: Preferred Stock, no par value

(537,145

)

 

(537,145

)

 

(537,145

)

Tangible common equity

$

4,129,449

 

 

$

4,126,687

 

 

$

3,977,761

 

Total shareholders’ equity to total assets ratio

9.36

%

 

9.49

%

 

10.01

%

Tangible common equity ratio

7.55

 

 

7.66

 

 

7.94

 

 

 

 

 

 

 

(1) An assumed marginal tax rate of 25.3% for 2021 and 25.9% for 2020 was applied.

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT DATA

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

2021

 

2020

 

First Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First
Quarter

 

Fourth
Quarter

 

Third
Quarter

 

Second
Quarter

 

First
Quarter

 

'21 vs '20

 

 

 

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

409,817

 

 

433,479

 

435,550

 

 

451,569

 

483,897

 

 

(15

)%

 

Interest expense

35,960

 

 

47,547

 

58,560

 

 

75,003

 

110,637

 

 

(67

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

373,857

 

 

385,932

 

376,990

 

 

376,566

 

373,260

 

 

 

 

(Reversal of) provision for credit losses

(18,575

)

 

11,066

 

43,383

 

 

141,851

 

158,722

 

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for credit losses

392,432

 

 

374,866

 

333,607

 

 

234,715

 

214,538

 

 

83

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

20,033

 

 

19,063

 

17,813

 

 

15,567

 

20,689

 

 

(3

)

 

Fiduciary and asset management fees

17,954

 

 

17,242

 

15,885

 

 

14,950

 

15,174

 

 

18

 

 

Card fees

11,996

 

 

11,743

 

10,823

 

 

9,186

 

10,950

 

 

10

 

 

Brokerage revenue

12,974

 

 

11,794

 

10,604

 

 

9,984

 

12,398

 

 

5

 

 

Mortgage banking income

22,315

 

 

24,426

 

31,229

 

 

23,530

 

12,227

 

 

83

 

 

Capital markets income

7,505

 

 

4,352

 

5,690

 

 

6,050

 

11,243

 

 

(33

)

 

Income from bank-owned life insurance

8,843

 

 

9,725

 

7,778

 

 

7,756

 

6,038

 

 

46

 

 

Investment securities (losses)/gains, net

(1,990

)

 

2,337

 

(1,550

)

 

69,409

 

8,734

 

 

nm

 

 

Gain on sale and fair value increase/(decrease) on private equity investments

 

 

63

 

260

 

 

8,707

 

(4,255

)

 

nm

 

 

Other non-interest revenue

11,326

 

 

14,016

 

15,879

 

 

8,345

 

10,659

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest revenue

110,956

 

 

114,761

 

114,411

 

 

173,484

 

103,857

 

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and other personnel expense

161,477

 

 

153,946

 

154,994

 

 

159,597

 

149,678

 

 

8

 

 

Net occupancy, equipment, and software expense

41,134

 

 

44,183

 

41,554

 

 

41,727

 

42,194

 

 

(3

)

 

Third-party processing and other services

20,032

 

 

20,799

 

21,827

 

 

22,666

 

22,700

 

 

(12

)

 

Professional fees

9,084

 

 

17,541

 

13,377

 

 

15,305

 

10,675

 

 

(15

)

 

FDIC insurance and other regulatory fees

5,579

 

 

6,288

 

6,793

 

 

6,851

 

5,278

 

 

6

 

 

Amortization of intangibles

2,379

 

 

2,640

 

2,640

 

 

2,640

 

2,640

 

 

(10

)

 

Goodwill impairment

 

 

 

44,877

 

 

 

 

 

nm

 

 

Restructuring charges

531

 

 

18,068

 

2,882

 

 

2,822

 

3,220

 

 

nm

 

 

Loss on early extinguishment of debt

 

 

8,409

 

154

 

 

 

1,904

 

 

nm

 

 

Earnout liability adjustments

 

 

 

 

 

4,908

 

 

 

nm

 

 

Other operating expenses

26,918

 

 

30,624

 

27,557

 

 

27,625

 

37,990

 

 

(29

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest expense

267,134

 

 

302,498

 

316,655

 

 

284,141

 

276,279

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

236,254

 

 

187,129

 

131,363

 

 

124,058

 

42,116

 

 

461

 

 

Income tax expense

49,161

 

 

36,720

 

39,789

 

 

30,866

 

3,595

 

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

187,093

 

 

150,409

 

91,574

 

 

93,192

 

38,521

 

 

386

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Preferred stock dividends

8,291

 

 

8,291

 

8,291

 

 

8,291

 

8,291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

$

178,802

 

 

142,118

 

83,283

 

 

84,901

 

30,230

 

 

491

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, basic

$

1.20

 

 

0.96

 

0.57

 

 

0.58

 

0.21

 

 

487

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, diluted

1.19

 

 

0.96

 

0.56

 

 

0.57

 

0.20

 

 

486

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

0.33

 

 

0.33

 

0.33

 

 

0.33

 

0.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets *

1.40

%

 

1.11

 

0.69

 

 

0.71

 

0.32

 

 

108

bps

 

Return on average common equity *

15.77

 

 

12.31

 

7.28

 

 

7.48

 

2.75

 

 

1,302

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

148,467

 

 

147,744

 

147,314

 

 

147,288

 

147,311

 

 

1

%

 

Weighted average common shares outstanding, diluted

149,780

 

 

148,725

 

147,976

 

 

147,733

 

148,401

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

nm - not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

bps - basis points

 

 

 

 

 

 

 

 

 

 

 

 

 

* - ratios are annualized

 

 

 

 

 

 

 

 

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET DATA

 

March 31, 2021

 

December 31, 2020

 

March 31, 2020

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Cash and due from banks

 

$

493,645

 

 

$

531,625

 

 

$

652,451

 

 

Interest-bearing funds with Federal Reserve Bank

 

2,722,100

 

 

3,586,565

 

 

1,020,775

 

 

Interest earning deposits with banks

 

23,969

 

 

20,944

 

 

20,717

 

 

Federal funds sold and securities purchased under resale agreements

 

88,552

 

 

113,783

 

 

129,891

 

 

Cash and cash equivalents

 

3,328,266

 

 

4,252,917

 

 

1,823,834

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale, at fair value

 

8,825,757

 

 

7,962,438

 

 

6,937,240

 

 

Loans held for sale ($242,010, $216,647, and $119,841 measured at fair value, respectively)

 

993,887

 

 

760,123

 

 

119,841

 

 

 

 

 

 

 

 

 

 

Loans, net of deferred fees and costs

 

38,805,101

 

 

38,252,984

 

 

38,258,024

 

 

Allowance for loan losses

 

(563,214

)

 

(605,736

)

 

(493,452

)

 

Loans, net

 

38,241,887

 

 

37,647,248

 

 

37,764,572

 

 

 

 

 

 

 

 

 

 

Cash surrender value of bank-owned life insurance

 

1,054,475

 

 

1,049,373

 

 

1,031,544

 

 

Premises, equipment and software, net

 

454,911

 

 

463,959

 

 

482,462

 

 

Goodwill

 

452,390

 

 

452,390

 

 

497,267

 

 

Other intangible assets, net

 

42,733

 

 

45,112

 

 

53,032

 

 

Other assets

 

1,764,705

 

 

1,760,599

 

 

1,909,793

 

 

Total assets

 

$

55,159,011

 

 

$

54,394,159

 

 

$

50,619,585

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

$

14,660,287

 

 

$

13,477,854

 

 

$

9,659,451

 

 

Interest-bearing deposits

 

32,708,664

 

 

33,213,717

 

 

30,167,134

 

 

 

 

 

 

 

 

 

 

Total deposits

 

47,368,951

 

 

46,691,571

 

 

39,826,585

 

 

 

 

 

 

 

 

 

 

Federal funds purchased and securities sold under repurchase agreements

 

293,659

 

 

227,922

 

 

312,776

 

 

Other short-term borrowings

 

 

 

7,717

 

 

1,175,000

 

 

Long-term debt

 

1,202,825

 

 

1,202,494

 

 

3,152,339

 

 

Other liabilities

 

1,131,859

 

 

1,103,121

 

 

1,087,680

 

 

Total liabilities

 

49,997,294

 

 

49,232,825

 

 

45,554,380

 

 

 

 

 

 

 

 

 

 

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 168,978,380, 168,132,522, and 167,359,689; outstanding 148,888,513, 148,039,495, and 147,266,662

 

168,978

 

 

168,133

 

 

167,360

 

 

Additional paid-in capital

 

3,864,281

 

 

3,851,208

 

 

3,821,357

 

 

Treasury stock, at cost – 20,089,867, 20,093,027, and 20,093,027 shares

 

(731,690

)

 

(731,806

)

 

(731,806

)

 

Accumulated other comprehensive income, net

 

15,278

 

 

158,635

 

 

256,911

 

 

Retained earnings

 

1,307,725

 

 

1,178,019

 

 

1,014,238

 

 

Total shareholders’ equity

 

5,161,717

 

 

5,161,334

 

 

5,065,205

 

 

Total liabilities and shareholders' equity

 

$

55,159,011

 

 

$

54,394,159

 

 

$

50,619,585

 

Synovus

 

 

 

 

 

 

 

 

AVERAGE BALANCES AND YIELDS/RATES (1)

 

(Unaudited)

 

2021

 

2020

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First

 

Fourth

Third

Second

First

 

 

 

Quarter

 

Quarter

Quarter

Quarter

Quarter

 

Interest Earning Assets

 

 

 

 

 

 

 

 

Investment securities (2) (4)

 

$

8,437,563

 

 

7,493,822

 

7,227,400

 

6,618,533

 

6,680,047

 

 

Yield

 

 

1.40

%

 

2.07

 

2.39

 

2.72

 

3.09

 

 

Trading account assets (5)

 

$

3,063

 

 

8,496

 

5,391

 

6,173

 

6,306

 

 

Yield

 

 

2.81

%

 

1.03

 

1.69

 

2.19

 

2.70

 

 

Commercial loans (3) (4)

 

$

29,844,491

 

 

30,363,102

 

30,730,135

 

30,236,919

 

27,607,343

 

 

Yield

 

 

3.95

%

 

3.96

 

3.80

 

3.95

 

4.57

 

 

Consumer loans (3)

 

$

8,367,776

 

 

8,521,449

 

9,032,437

 

9,899,172

 

9,985,702

 

 

Yield

 

 

3.98

%

 

4.00

 

4.08

 

4.34

 

4.60

 

 

Allowance for loan losses

 

$

(599,872

)

 

(595,547

)

(591,098

)

(498,545

)

(368,033

)

 

Loans, net (3)

 

$

37,612,395

 

 

38,289,004

 

39,171,474

 

39,637,546

 

37,225,012

 

 

Yield

 

 

4.02

%

 

4.03

 

3.92

 

4.08

 

4.62

 

 

Mortgage loans held for sale

 

$

246,962

 

 

309,278

 

244,952

 

221,157

 

86,415

 

 

Yield

 

 

2.68

%

 

2.74

 

2.92

 

3.09

 

3.67

 

 

Other loans held for sale

 

$

660,753

 

 

544,301

 

493,940

 

19,246

 

 

 

Yield

 

 

2.91

%

 

2.81

 

3.61

 

4.19

 

 

 

Federal funds sold, due from Federal Reserve Bank, and other short-term investments

 

$

2,838,021

 

 

2,716,645

 

1,265,880

 

1,709,086

 

652,130

 

 

Yield

 

 

0.10

%

 

0.10

 

0.11

 

0.11

 

1.02

 

 

Federal Home Loan Bank and Federal Reserve Bank Stock (5)

 

$

157,657

 

 

162,537

 

200,923

 

247,801

 

284,082

 

 

Yield

 

 

1.69

%

 

2.64

 

2.73

 

3.60

 

3.38

 

 

Total interest earning assets

 

$

49,956,414

 

 

49,524,083

 

48,609,960

 

48,459,542

 

44,933,992

 

 

Yield

 

 

3.32

%

 

3.49

 

3.58

 

3.75

 

4.33

 

 

Interest-Bearing Liabilities

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

8,570,753

 

 

8,531,415

 

7,789,095

 

7,260,940

 

6,445,986

 

 

Rate

 

 

0.14

%

 

0.16

 

0.19

 

0.21

 

0.51

 

 

Money Market accounts

 

$

15,348,916

 

 

14,411,860

 

13,272,972

 

12,238,479

 

11,548,014

 

 

Rate

 

 

0.23

%

 

0.26

 

0.36

 

0.46

 

1.00

 

 

Savings deposits

 

$

1,219,288

 

 

1,147,667

 

1,114,956

 

1,036,024

 

926,822

 

 

Rate

 

 

0.02

%

 

0.01

 

0.02

 

0.02

 

0.05

 

 

Time deposits under $100,000

 

$

1,161,306

 

 

1,239,592

 

1,379,923

 

1,621,943

 

1,761,741

 

 

Rate

 

 

0.56

%

 

0.74

 

1.03

 

1.43

 

1.64

 

 

Time deposits over $100,000

 

$

2,993,996

 

 

3,302,959

 

3,863,821

 

4,772,555

 

5,051,705

 

 

Rate

 

 

0.74

%

 

1.03

 

1.44

 

1.80

 

2.04

 

 

Other brokered deposits

 

$

1,950,582

 

 

1,978,393

 

1,912,114

 

1,998,571

 

1,376,669

 

 

Rate

 

 

0.20

%

 

0.23

 

0.23

 

0.25

 

1.42

 

 

Brokered time deposits

 

$

1,418,751

 

 

1,795,982

 

2,232,940

 

2,244,429

 

2,166,496

 

 

Rate

 

 

1.50

%

 

1.60

 

1.59

 

1.86

 

2.11

 

 

Total interest-bearing deposits

 

$

32,663,592

 

 

32,407,868

 

31,565,821

 

31,172,941

 

29,277,433

 

 

Rate

 

 

0.31

%

 

0.39

 

0.54

 

0.73

 

1.18

 

 

Federal funds purchased and securities sold under repurchase agreements

 

$

209,448

 

 

174,316

 

180,342

 

250,232

 

167,324

 

 

Rate

 

 

0.07

%

 

0.07

 

0.09

 

0.12

 

0.30

 

 

Other short-term borrowings

 

$

 

 

 

46,739

 

550,000

 

1,384,362

 

 

Rate

 

 

%

 

 

1.12

 

1.23

 

1.66

 

 

Long-term debt

 

$

1,202,613

 

 

1,552,791

 

2,234,665

 

2,834,188

 

2,678,651

 

 

Rate

 

 

3.63

%

 

3.96

 

2.71

 

2.36

 

2.78

 

 

Total interest-bearing liabilities

 

$

34,075,653

 

 

34,134,975

 

34,027,567

 

34,807,361

 

33,507,770

 

 

Rate

 

 

0.42

%

 

0.55

 

0.68

 

0.86

 

1.30

 

 

Non-interest-bearing demand deposits

 

$

13,791,286

 

 

13,566,112

 

12,773,676

 

11,923,534

 

9,409,774

 

 

Cost of funds

 

 

0.30

%

 

0.40

 

0.50

 

0.65

 

1.04

 

 

Effective cost of funds(6)

 

 

0.28

%

 

0.37

 

0.48

 

0.62

 

0.96

 

 

Net interest margin

 

 

3.04

%

 

3.12

 

3.10

 

3.13

 

3.37

 

 

Taxable equivalent adjustment (4)

 

$

774

 

 

821

 

956

 

861

 

786

 

 

 

(1) Yields and rates are annualized.

 

(2) Excludes net unrealized gains and losses.

 

(3) Average loans are shown net of unearned income. Non-performing loans are included.

 

(4) Reflects taxable-equivalent adjustments, using the statutory federal income tax rate of 21%, in adjusting interest on tax-exempt loans and investment securities to a taxable-equivalent basis.

 

(5) Included as a component of other assets on the consolidated balance sheet.

 

(6) Includes the impact of non-interest-bearing capital funding sources.

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

LOANS OUTSTANDING BY TYPE

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

Total Loans

 

Total Loans

 

Linked Quarter

 

Total Loans

 

Year/Year

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

Loan Type

 

March 31, 2021

 

December 31, 2020

 

% Change

 

March 31, 2020

 

% Change

Commercial, Financial, and Agricultural

 

$

12,662,329

 

 

$

12,410,152

 

 

2

%

 

$

10,902,455

 

 

16

%

Owner-Occupied

 

7,031,505

 

 

7,110,016

 

 

(1

)

 

6,907,893

 

 

2

 

Total Commercial & Industrial

 

19,693,834

 

 

19,520,168

 

 

1

 

 

17,810,348

 

 

11

 

Multi-Family

 

2,220,939

 

 

2,190,534

 

 

1

 

 

2,103,566

 

 

6

 

Hotels

 

1,462,370

 

 

1,442,242

 

 

1

 

 

1,311,614

 

 

11

 

Office Buildings

 

2,280,053

 

 

2,207,744

 

 

3

 

 

2,211,525

 

 

3

 

Shopping Centers

 

1,662,158

 

 

1,644,519

 

 

1

 

 

1,778,627

 

 

(7

)

Warehouses

 

692,267

 

 

700,050

 

 

(1

)

 

759,858

 

 

(9

)

Other Investment Property

 

1,017,938

 

 

918,290

 

 

11

 

 

859,726

 

 

18

 

Total Investment Properties

 

9,335,725

 

 

9,103,379

 

 

3

 

 

9,024,916

 

 

3

 

1-4 Family Construction

 

189,626

 

 

182,981

 

 

4

 

 

254,495

 

 

(25

)

1-4 Family Investment Mortgage

 

449,328

 

 

445,714

 

 

1

 

 

482,442

 

 

(7

)

Total 1-4 Family Properties

 

638,954

 

 

628,695

 

 

2

 

 

736,937

 

 

(13

)

Commercial Development

 

142,380

 

 

130,678

 

 

9

 

 

107,219

 

 

33

 

Residential Development

 

196,653

 

 

245,170

 

 

(20

)

 

302,516

 

 

(35

)

Land Acquisition

 

220,216

 

 

217,785

 

 

1

 

 

303,770

 

 

(28

)

Land and Development

 

559,249

 

 

593,633

 

 

(6

)

 

713,505

 

 

(22

)

Total Commercial Real Estate

 

10,533,928

 

 

10,325,707

 

 

2

 

 

10,475,358

 

 

1

 

Consumer Mortgages

 

5,299,175

 

 

5,513,491

 

 

(4

)

 

5,613,997

 

 

(6

)

Home Equity Lines

 

1,432,367

 

 

1,537,726

 

 

(7

)

 

1,793,486

 

 

(20

)

Credit Cards

 

267,371

 

 

281,018

 

 

(5

)

 

261,581

 

 

2

 

Other Consumer Loans

 

1,578,426

 

 

1,074,874

 

 

47

 

 

2,303,254

 

 

(31

)

Total Consumer

 

8,577,339

 

 

8,407,109

 

 

2

 

 

9,972,318

 

 

(14

)

Total

 

$

38,805,101

 

 

$

38,252,984

 

 

1

%

 

$

38,258,024

 

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

March 31, 2021

 

December 31, 2020

 

% Change

 

March 31, 2020

 

% Change

Commercial, Financial, and Agricultural

 

$

76,460

 

 

$

77,386

 

 

(1

)%

 

$

99,287

 

 

(23

)%

Owner-Occupied

 

17,192

 

 

20,019

 

 

(14

)

 

17,357

 

 

(1

)

Total Commercial & Industrial

 

93,652

 

 

97,405

 

 

(4

)

 

116,644

 

 

(20

)

Multi-Family

 

2,698

 

 

168

 

 

nm

 

 

356

 

 

658

 

Office Buildings

 

1,645

 

 

1,134

 

 

45

 

 

836

 

 

97

 

Shopping Centers

 

20,138

 

 

21,082

 

 

(4

)

 

712

 

 

nm

 

Warehouses

 

221

 

 

217

 

 

2

 

 

 

 

nm

 

Other Investment Property

 

887

 

 

2,030

 

 

(56

)

 

308

 

 

188

 

Total Investment Properties

 

25,589

 

 

24,631

 

 

4

 

 

2,212

 

 

nm

 

1-4 Family Construction

 

1,291

 

 

1,236

 

 

4

 

 

278

 

 

364

 

1-4 Family Investment Mortgage

 

2,760

 

 

2,383

 

 

16

 

 

2,047

 

 

35

 

Total 1-4 Family Properties

 

4,051

 

 

3,619

 

 

12

 

 

2,325

 

 

74

 

Commercial Development

 

567

 

 

582

 

 

(3

)

 

596

 

 

(5

)

Residential Development

 

452

 

 

533

 

 

(15

)

 

561

 

 

(19

)

Land Acquisition

 

782

 

 

1,048

 

 

(25

)

 

1,043

 

 

(25

)

Land and Development

 

1,801

 

 

2,163

 

 

(17

)

 

2,200

 

 

(18

)

Total Commercial Real Estate

 

31,441

 

 

30,413

 

 

3

 

 

6,737

 

 

367

 

Consumer Mortgages

 

11,201

 

 

8,740

 

 

28

 

 

13,571

 

 

(17

)

Home Equity Lines

 

12,191

 

 

12,145

 

 

 

 

12,475

 

 

(2

)

Other Consumer Loans

 

6,684

 

 

2,376

 

 

181

 

 

6,860

 

 

(3

)

Total Consumer

 

30,076

 

 

23,261

 

 

29

 

 

32,906

 

 

(9

)

Total

 

$

155,169

 

 

$

151,079

 

 

3

%

 

$

156,287

 

 

(1

)%

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY DATA

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

2021

 

2020

 

First Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First

 

Fourth

 

Third

 

Second

 

First

 

'21 vs '20

 

 

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Loans (NPLs)

 

$

155,169

 

 

151,079

 

 

168,837

 

 

147,437

 

 

156,287

 

 

(1

)%

 

Impaired Loans Held for Sale

 

23,590

 

 

23,590

 

 

 

 

 

 

 

 

nm

 

 

Other Real Estate and Other Assets

 

16,849

 

 

17,394

 

 

23,280

 

 

30,242

 

 

33,679

 

 

(50

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Assets (NPAs)

 

195,608

 

 

192,063

 

 

192,117

 

 

177,679

 

 

189,966

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses (ALL)

 

563,214

 

 

605,736

 

 

603,800

 

 

588,648

 

 

493,452

 

 

14

 

 

Reserve for Unfunded Commitments

 

51,528

 

 

47,785

 

 

60,794

 

 

61,029

 

 

38,420

 

 

34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses (ACL)

 

614,742

 

 

653,521

 

 

664,594

 

 

649,677

 

 

531,872

 

 

16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Charge-Offs - Quarter

 

20,204

 

 

22,139

 

 

28,466

 

 

24,046

 

 

20,061

 

 

 

 

 

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

 

0.21

%

 

0.23

 

 

0.29

 

 

0.24

 

 

0.21

 

 

 

 

 

NPLs / Loans

 

0.40

 

 

0.39

 

 

0.43

 

 

0.37

 

 

0.41

 

 

 

 

 

NPAs / Loans, ORE and specific other assets

 

0.50

 

 

0.50

 

 

0.49

 

 

0.44

 

 

0.50

 

 

 

 

 

ACL/Loans

 

1.58

 

 

1.71

 

 

1.68

 

 

1.63

 

 

1.39

 

 

 

 

 

ALL/Loans

 

1.45

 

 

1.58

 

 

1.53

 

 

1.47

 

 

1.29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACL/NPLs

 

396.18

 

 

432.57

 

 

393.63

 

 

440.65

 

 

340.32

 

 

 

 

 

ALL/NPLs

 

362.97

 

 

400.94

 

 

357.62

 

 

399.25

 

 

315.74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past Due Loans over 90 days and Still Accruing

 

$

3,804

 

 

4,117

 

 

7,512

 

 

8,391

 

 

6,398

 

 

(41

)

 

As a Percentage of Loans Outstanding

 

0.01

%

 

0.01

 

 

0.02

 

 

0.02

 

 

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Past Due Loans and Still Accruing

 

$

45,693

 

 

47,349

 

 

57,316

 

 

46,390

 

 

83,235

 

 

(45

)

 

As a Percentage of Loans Outstanding

 

0.12

%

 

0.12

 

 

0.14

 

 

0.12

 

 

0.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing Troubled Debt Restructurings (TDRs)

 

$

129,776

 

 

134,972

 

 

163,511

 

 

166,461

 

 

160,128

 

 

(19

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Ratio is annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED CAPITAL INFORMATION (1)

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,
2021

 

December 31,
2020

 

March 31,
2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital

 

$

4,721,859

 

 

4,572,010

 

 

4,281,560

 

 

 

 

 

 

 

 

 

Total Risk-Based Capital

 

5,733,955

 

 

5,604,230

 

 

5,289,039

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Capital Ratio

 

9.74

%

 

9.66

 

 

8.70

 

 

 

 

 

 

 

 

 

Tier 1 Capital Ratio

 

10.99

 

 

10.95

 

 

9.95

 

 

 

 

 

 

 

 

 

Total Risk-Based Capital Ratio

 

13.34

 

 

13.42

 

 

12.29

 

 

 

 

 

 

 

 

 

Tier 1 Leverage Ratio

 

8.80

 

 

8.50

 

 

8.92

 

 

 

 

 

 

 

 

 

Common Equity as a Percentage of Total Assets (2)

 

8.38

 

 

8.51

 

 

8.95

 

 

 

 

 

 

 

 

 

Tangible Common Equity Ratio (3) (5)

 

7.55

 

 

7.66

 

 

7.94

 

 

 

 

 

 

 

 

 

Book Value Per Common Share (4)

 

$

31.06

 

 

31.24

 

 

30.75

 

 

 

 

 

 

 

 

 

Tangible Book Value Per Common Share (3)

 

27.74

 

 

27.88

 

 

27.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

Contacts

Media Contact
Lee Underwood
Media Relations
(706) 644-0528

Investor Contact
Kevin Brown
Investor Relations
(706) 644-0948

Contacts

Media Contact
Lee Underwood
Media Relations
(706) 644-0528

Investor Contact
Kevin Brown
Investor Relations
(706) 644-0948