Diluted Earnings per Share of $0.56, up 44.1%
vs. 1Q16
Also Announces Definitive Agreement with
World’s Foremost Bank and Capital One
Synovus Financial Corp. (NYSE: SNV) today reported financial
results for the quarter ended March 31, 2017.
First Quarter Highlights
- Net income available to common
shareholders for the first quarter 2017 was $69.3 million or $0.56
per diluted share as compared to $66.0 million or $0.54 per diluted
share for the fourth quarter 2016 and $50.0 million or $0.39 per
diluted share for the first quarter 2016.
- Adjusted earnings per diluted share for
the first quarter 2017 were $0.57, a 5.4% increase from the fourth
quarter 2016 and a 29.8% increase from the first quarter 2016.
- Total average loans grew $313.0 million
or 5.4% annualized from the previous quarter and $1.45 billion or
6.4% as compared to the first quarter 2016.
- Total average deposits grew $257.6
million or 4.2% annualized from the previous quarter and $1.71
billion or 7.4% as compared to the first quarter 2016.
- Total revenues1 of $304.1 million, up
$2.4 million or 0.8% from the previous quarter and 8.1% from the
first quarter 2016.
- Net interest margin of 3.42%, up 13
basis points from the previous quarter and up 15 basis points from
the first quarter 2016.
- Efficiency ratio of 64.84% improved 201
basis points from the first quarter 2016.
- Adjusted efficiency ratio2 of 62.25%
improved 129 basis points from the first quarter 2016.
- Credit quality metrics remained
favorable with a net charge-off ratio of 12 basis points, down 2
basis points from the previous quarter and down 1 basis point from
the first quarter 2016.
- Return on average common equity of
9.97%, up 55 basis points from the previous quarter and up 289
basis points from the first quarter 2016.
- Return on average tangible common
equity of 10.26%, up 61 basis points from the previous quarter and
up 311 basis points from the first quarter 2016.
“We are pleased with our strong first quarter performance,
highlighted by an 8 percent year-over-year revenue increase driven
by steady balance sheet growth and expanded net interest margin,”
said Kessel D. Stelling, Synovus chairman and CEO. “We remain
confident in our ability to deliver on our 2017 financial targets,
and we are excited about the work underway to prepare for our 2018
transition to a single brand. Leveraging a common brand while
maintaining our local, relationship-centered delivery model will
further boost Synovus brand awareness and enhance our ability to
promote our broader banking capabilities to prospects and existing
customers.”
Balance Sheet
- Total loans ended the quarter at $24.26
billion, up $402.1 million or 6.8% annualized from the previous
quarter and up $1.50 billion or 6.6% as compared to the first
quarter 2016.
- Commercial and industrial loans grew by
$188.8 million or 6.6% annualized from the previous quarter and
$931.3 million or 8.6% as compared to the first quarter 2016.
- Consumer loans grew by $119.7 million
or 9.8% annualized from the previous quarter and $719.8 million or
16.5% as compared to the first quarter 2016.
- Commercial real estate loans grew by
$93.2 million or 5.1% annualized from the previous quarter and
declined $154.4 million or 2.0% as compared to the first quarter
2016.
- Total average loans grew $313.0 million
or 5.4% annualized from the previous quarter and $1.45 billion or
6.4% as compared to the first quarter 2016.
- Total average deposits for the quarter
were $24.92 billion, up $257.6 million or 4.2% annualized from the
previous quarter and $1.71 billion or 7.4% as compared to the first
quarter 2016.
- Average core transaction deposits3 grew
$371.7 million or 8.5% annualized from the previous quarter and
$1.61 billion or 9.7% as compared to the first quarter 2016.
Core Performance
- Total revenues1 were $304.1 million, up
$2.4 million or 0.8% from the previous quarter and 8.1% from the
first quarter 2016.
- Net interest income was $239.9 million,
up $6.4 million or 2.7% from the previous quarter and 10.0% from
the first quarter 2016.
- Net interest margin was 3.42%, up 13
basis points from the previous quarter. Yield on earning assets was
3.88%, up 15 basis points from the previous quarter, and the
effective cost of funds was 0.46%, up 2 basis points from the
previous quarter.
- Total non-interest income was $71.8
million, down $2.2 million or 2.9% compared to the previous quarter
and up 13.8% from first quarter 2016.
- Adjusted non-interest income was $66.0
million, down $2.6 million or 3.8% from the previous quarter and up
4.0% as compared to the first quarter 2016.
- Core banking fees4 were $32.7 million,
down $2.8 million or 7.8% from the previous quarter and 1.8% from
the first quarter 2016.
- Gains from sale of GGL/SBA loans were
$730 thousand, down $1.4 million or 66.4% from the previous quarter
and up 2.7% from the first quarter 2016.
- Fiduciary and asset management fees,
brokerage revenue, and insurance revenues were $20.7 million, up
$334 thousand or 1.6% from the previous quarter and 10.3% from the
first quarter 2016.
- Mortgage banking income was $5.8
million, up $262 thousand or 4.8% from the previous quarter and
5.1% from the first quarter 2016.
- Total non-interest expense was $197.4
million, up $4.2 million or 2.2% from the previous quarter and 4.9%
from the first quarter 2016.
- First quarter 2017 total non-interest
expense includes $6.5 million in restructuring charges consisting
primarily of termination benefits incurred in conjunction with a
voluntary early retirement program offered during the quarter.
- Adjusted non-interest expense was
$190.6 million, up $3.6 million or 1.9% from the previous quarter
and 6.4% from the first quarter 2016.
- Employment expense of $107.2 million
increased $5.5 million or 5.4% from the previous quarter and 5.8%
from the first quarter 2016.
- Occupancy and equipment expense of
$29.3 million increased $1.5 million or 5.3% from the previous
quarter and 10.4% from the first quarter 2016.
- Other operating expenses of $54.1
million decreased $3.4 million or 5.8% from the previous quarter
and increased 5.5% from the first quarter 2016.
- Efficiency ratio for the first quarter
was 64.84% as compared to 63.98% in the previous quarter and 66.85%
in the first quarter 2016.
- Adjusted efficiency ratio2 for the
first quarter was 62.25% as compared to 61.81% in the previous
quarter and 63.54% in the first quarter 2016.
Credit Quality
- Non-performing loans were $158.4
million at March 31, 2017, up $5.0 million or 3.3% from the
previous quarter and down $19.8 million or 11.1% from March 31,
2016. The non-performing loan ratio was 0.65% at March 31, 2017, as
compared to 0.64% at the end of the previous quarter and 0.78% at
March 31, 2016.
- Total non-performing assets were $187.2
million at March 31, 2017, down $11.5 million or 6.6% from the
previous quarter and down $29.4 million or 13.6% from March 31,
2016. The non-performing asset ratio was 0.77% at March 31, 2017,
as compared to 0.74% at the end of the previous quarter and 0.95%
at March 31, 2016.
- Net charge-offs were $6.9 million in
the first quarter 2017, down $1.4 million or 16.8% from $8.3
million in the previous quarter and 6.0% from the first quarter
2016. The annualized net charge-off ratio was 0.12% in the first
quarter as compared to 0.14% in the previous quarter and 0.13% in
the first quarter 2016.
- Total delinquencies (consisting of
loans 30 or more days past due and still accruing) remain low at
0.26% of total loans at March 31, 2017 as compared to 0.27% the
previous quarter and 0.28% at March 31, 2016.
Capital Ratios
- Ratios reflect repurchase of $15.1
million in common stock during the first quarter 2017.
- Common Equity Tier 1 ratio was 9.86% at
March 31, 2017 compared to 9.96% at December 31, 2016.
- Tier 1 Capital ratio was 10.18% at
March 31, 2017 compared to 10.07% at December 31, 2016.
- Total Risk Based Capital ratio was
12.09% at March 31, 2017 compared to 12.01% at December 31,
2016.
- Tier 1 Leverage ratio was 9.13% at
March 31, 2017 compared to 8.99% at December 31, 2016.
- Tangible Common Equity ratio was 9.04%
at March 31, 2017 compared to 9.09% at December 31, 2016.
Definitive Agreement with World’s Foremost Bank and Capital
One
On April 17, 2017, Synovus Bank entered into a definitive
agreement to acquire certain assets and assume certain liabilities
of World’s Foremost Bank (“WFB”), a wholly-owned subsidiary of
Cabela’s Incorporated (NYSE: CAB) (“Cabela’s”). Immediately
following the closing of this transaction, Synovus will sell the
credit card assets and related liabilities to Capital One Bank
(USA), National Association, a bank subsidiary of Capital One
Financial Corporation (NYSE: COF) (“Capital One”), while retaining
the approximately $1.2 billion brokered time deposit portfolio.
Pursuant to the terms of the agreement, Synovus will receive $75
million in consideration from Cabela’s and Capital One. The
transaction is expected to close in the third quarter of 2017 and
is subject to customary regulatory approvals as well as completion
of the Cabela’s and Bass Pro Shops merger announced in October
2016.
“This transaction will provide Synovus with additional liquidity
to support organic growth, as well as incremental capital that can
be utilized to accelerate progress toward achieving our stated
long-term ROA and efficiency goals,” said Stelling.
First Quarter Earnings Conference Call
Synovus will host an earnings highlights conference call at 8:30
a.m. EDT on April 18, 2017. 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.
Synovus Financial Corp. is a financial services company based in
Columbus, Georgia, with over $30 billion in assets. Synovus
provides commercial and retail banking, investment, and mortgage
services to customers through 28 locally-branded divisions, 248
branches, and 327 ATMs in Georgia, Alabama, South Carolina,
Florida, and Tennessee. Synovus Bank, a wholly owned subsidiary of
Synovus, was recognized as one of America’s Most Reputable Banks by
American Banker and the Reputation Institute in 2016 and 2015, and
was named “Best Regional Bank, Southeast” by MONEY Magazine for
2016-2017. Synovus is on the web at synovus.com, on Twitter
@synovus, and on LinkedIn at
http://linkedin.com/company/synovus.
____________________
1 Consist of net interest income and non-interest income
excluding investment securities gains, net.2 Adjusted efficiency
ratio: 2016 ratios reflect changes to conform to current year
presentation. Foreclosed real estate expense, net and other credit
costs are now included in the calculation of the adjusted
efficiency ratio, and (decrease) increase in fair value of private
equity investments, net is excluded from the calculation.3 Consist
of non-interest bearing, NOW/Savings, and money market deposits
excluding SCMs.4 Include service charges on deposit accounts,
bankcard fees, letter of credit fees, ATM fee income, line of
credit non-usage fees, gains from sales of government guaranteed
loans, and miscellaneous other service charges.
Forward-Looking Statements
This press release and certain of our other filings with the
Securities and Exchange Commission contain statements that
constitute “forward-looking statements” within the meaning of, and
subject to the protections of, Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. All statements other than
statements of historical fact are forward-looking statements. You
can identify these forward-looking statements through Synovus’ use
of words such as “believes,” “anticipates,” “expects,” “may,”
“will,” “assumes,” “should,” “predicts,” “could,” “would,”
“intends,” “targets,” “estimates,” “projects,” “plans,” “potential”
and other similar words and expressions of the future or otherwise
regarding the outlook for Synovus’ future business and financial
performance and/or the performance of the banking industry and
economy in general. These forward-looking statements include, among
others, our expectations regarding deposits, loan growth and the
net interest margin; expectations on our growth strategy, expense
initiatives, capital management and future profitability;
expectations on credit trends and key credit metrics; expectations
on the impact of certain transactions on our financial performance,
expectations on opportunities and alternatives to deploy additional
capital as a result of such transactions and expectations regarding
the closing or benefits of such transactions; 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, 2016 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.
Use of Non-GAAP Financial Measures
The measures entitled adjusted diluted earnings per share;
average core transaction deposits; adjusted non-interest income;
adjusted non-interest expense; adjusted efficiency ratio; return on
average tangible common equity; tangible common equity ratio; and
common equity Tier 1 (CET1) ratio (fully phased-in) are not
measures recognized under U.S. generally accepted accounting
principles (GAAP) and therefore are considered non-GAAP financial
measures. The most comparable GAAP measures are diluted earnings
per share; total average deposits; total non-interest income; total
non-interest expense; efficiency ratio; return on average common
equity; total shareholders’ equity to total assets ratio; and the
CET1 ratio, respectively.
Management believes that these non-GAAP financial measures
provide meaningful additional information about Synovus to assist
management, investors, and bank regulators in evaluating Synovus’
operating results, financial strength, the performance of its
business and the strength of its capital position. However, these
non-GAAP 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. Adjusted diluted earnings per share is a measure used by
management to evaluate operating results exclusive of items that
are not indicative of ongoing operations and impact period-to-
period comparisons. Average core transaction deposits is a measure
used by management to evaluate organic growth of deposits and the
quality of deposits as a funding source. Adjusted non-interest
income is a measure utilized by management to measure non-interest
income exclusive of net investment securities gains/losses and
changes in fair value of private equity investments, net. Adjusted
non-interest expense and the adjusted efficiency ratio are measures
utilized by management to measure the success of expense management
initiatives focused on reducing recurring controllable operating
costs. Return on average tangible common equity is a measure used
by management to compare Synovus’ performance with other financial
institutions because it calculates the return available to common
shareholders without the impact of intangible assets and their
related amortization, thereby allowing management to evaluate the
performance of the business consistently. The tangible common
equity ratio and the common equity Tier 1 (CET1) ratio (fully
phased-in) are used by management and bank regulators to assess the
strength of our capital position. These 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
and should not be considered as substitutes for diluted earnings
per share; total average deposits; total non-interest income; total
non-interest expense; efficiency ratio; return on average common
equity; total shareholders’ equity to total assets ratio, and the
CET1 ratio determined in accordance with GAAP, and may not be
comparable to other similarly titled measures at other
companies.
The computations of adjusted diluted earnings per share; average
core transaction deposits; adjusted non-interest income; adjusted
non-interest expense; adjusted efficiency ratio; return on average
tangible common equity; tangible common equity ratio; and common
equity Tier 1 (CET1) ratio (fully phased-in) and the reconciliation
of these measures to diluted earnings per share; total average
deposits; total non-interest income; total non-interest expense;
efficiency ratio; return on average common equity; total
shareholders’ equity to total assets ratio, and the CET1 ratio are
set forth in the tables below.
Reconciliation of
Non-GAAP Financial Measures
(dollars in thousands)
1Q17
4Q16
1Q16
Adjusted Diluted Earnings per Share Net income
available to common shareholders $ 69,298 65,990 49,972 Add:
Litigation settlement expense - - 2,700 Add: Restructuring charges
6,511 42 1,140 Add: Merger-related expense 86 1,086 - Add: Fair
value adjustment to Visa derivative - 4,716 360 Add: Loss on early
extinguishment of debt - - 4,735 Add: Decrease in fair value of
private equity investments, net 1,814 499 391 Subtract: Investment
securities gains, net (7,668 ) (5,885 ) (67 ) Tax effect of
adjustments
(267 )
(167 ) (3,389 )
Adjusted net income available to common shareholders
$
69,774 66,281
55,842 Weighted average common shares
outstanding, diluted 123,059 123,187 127,857 Adjusted diluted
earnings per share
$ 0.57
0.54 0.44 Average
Core Transaction Deposits Total average deposits $ 24,918,855
24,661,265 23,210,263 Subtract: Average brokered deposits
(1,380,786 ) (1,380,931 ) (1,095,239 ) Subtract: Average time
deposits excluding average SCM time deposits (3,151,888 )
(3,147,620 ) (3,137,378 ) Subtract: Average state, county, and
municipal (SCM) deposits
(2,238,324
) (2,356,567 )
(2,440,749 ) Average core transaction
deposits
$ 18,147,857
17,776,147 16,536,897
Adjusted Non-interest Income Total non-interest
income $ 71,839 74,006 63,147 Subtract: Investment securities
gains, net (7,668 ) (5,885 ) (67 ) Add: Decrease in fair value of
private equity investments, net
1,814
499 391 Adjusted
non-interest income
$ 65,985
68,620 63,471
Adjusted Non-interest Expense Total non-interest expense $
197,388 193,209 188,233 Subtract: Restructuring charges (6,511 )
(42 ) (1,140 ) Subtract: Fair value adjustment to Visa derivative -
(4,716 ) (360 ) Subtract: Litigation settlement expense - - (2,700
) Subtract: Loss on early extinguishment of debt - - (4,735 )
Subtract: Merger-related expense (86 ) (1,086 ) - Subtract:
Amortization of intangibles
(183 )
(400 ) (121
) Adjusted non-interest expense
$
190,608 186,965
179,177
Reconciliation of Non-GAAP Financial Measures,
continued
(dollars in thousands)
1Q17
4Q16
1Q16
Adjusted Efficiency Ratio Adjusted non-interest expense $
190,608 $ 186,965 179,177 Net interest income 239,927 233,530
218,193 Add: Tax equivalent adjustment 309 322 305 Add: Total
non-interest income 71,839 74,006 63,147 Add: Decrease in fair
value of private equity investments, net 1,814 499 391
391
Subtract: Investment securities gains, net
(7,668 ) (5,885
) (67 ) Total revenues $
306,221 $ 302,472 281,969 Adjusted efficiency ratio
62.25 % 61.81
63.54 Return on average tangible
common equity Total average shareholders’ equity $ 2,943,643
2,912,687 2,966,497 Average Series C Preferred Stock
(125,980 ) (125,980
) (125,980 ) Total average
common equity 2,817,663 2,786,707 2,840,517 Average goodwill
(59,649 ) (55,144 ) (24,431 ) Average other intangible assets, net
(13,177 ) (233
) (367 ) Average tangible
common equity $ 2,744,837 2,731,330 2,815,719 Net income available
to common shareholders, annualized 281,043 262,526 200,983
Amortization of intangibles, annualized and after-tax
469 1,022
307 Adjusted net income available to common
shareholders, annualized $ 281,512 263,528 201,290 Return on
average tangible common equity 10.26 % 9.65 7.15
Tangible
common equity ratio Total assets $ 30,679,589 30,104,002
29,171,257 Subtract: Goodwill (57,010 ) (59,678 ) (24,431 )
Subtract: Other intangible assets, net
(12,137
) (13,223 )
(277 ) Tangible assets
$
30,610,442 30,031,101
29,146,549 Total shareholders’
equity $ 2,962,127 2,927,924 2,953,268 Subtract: Goodwill (57,010 )
(59,678 ) (24,431 ) Subtract: Other intangible assets, net (12,137
) (13,223 ) (277 ) Subtract: Series C Preferred Stock, no par value
(125,980 )
(125,980 ) (125,980
) Tangible common equity
$
2,767,000 2,729,043
2,802,580 Tangible common equity ratio 9.04 %
9.09 9.62
Common Equity Tier 1 (CET1) ratio (fully
phased-in) Common Equity Tier 1 (CET1) $ 2,672,649 2,654,287
2,609,191 Adjustment related to capital components
(39,834 ) (94,387
) (125,980 ) CET1 (fully
phased-in)
$ 2,632,815
2,559,900 2,483,211 Total
risk-weighted assets (fully phased-in) $ 27,332,093 26,909,755
26,231,764 Common Equity Tier 1 (CET1) ratio (fully phased-in) 9.63
% 9.51 9.47
Synovus INCOME
STATEMENT DATA (Unaudited) (In thousands, except per
share data)
2017 2016 1st
Quarter
First Fourth Third Second First '17 vs. '16
Quarter Quarter Quarter
Quarter Quarter Change
Interest income $
272,401 264,534 256,554 252,393 249,323
9.3 % Interest expense
32,474 31,004
30,547 30,944 31,130 4.3 Net
interest income
239,927 233,530 226,007 221,449 218,193 10.0
Provision for loan losses
8,674 6,259
5,671 6,693 9,377 (7.5 ) Net interest
income after provision for loan losses
231,253
227,271 220,336 214,756 208,816 10.7
Non-interest income: Service charges on deposit accounts
19,774 20,653 20,822 20,240 19,710 0.3 Fiduciary and asset
management fees
12,151 11,903 11,837 11,580 11,274 7.8
Brokerage revenue
7,226 7,009 6,199 7,338 6,483 11.5
Mortgage banking income
5,766 5,504 7,329 5,941 5,484 5.1
Bankcard fees
8,185 8,330 8,269 8,346 8,372 (2.2 )
Investment securities gains, net
7,668 5,885 59 - 67 nm
(Decrease) increase in fair value of private equity investments,
net
(1,814 ) (499 ) (249 ) 113 (391 ) nm Other fee
income
4,868 4,965 5,171 5,280 4,804 1.3 Other non-interest
income
8,015 10,256 8,718 9,048
7,344 9.1 Total non-interest income
71,839 74,006 68,155 67,886 63,147
13.8 Non-interest expense: Salaries and other
personnel expense
107,191 101,662 101,945 97,061 101,358 5.8
Net occupancy and equipment expense
29,331 27,867 28,120
26,783 26,577 10.4 Third-party processing expense
12,603
12,287 11,219 11,698 11,116 13.4 FDIC insurance and other
regulatory fees
6,770 6,614 6,756 6,625 6,719 0.8
Professional fees
5,355 6,904 6,486 6,938 6,369 (15.9 )
Advertising expense
5,912 4,905 5,597 7,351 2,410 145.3
Foreclosed real estate expense, net
2,134 2,840 2,725 4,588
2,684 (20.5 ) Merger-related expense
86 1,086 550 - - nm
Amortization of intangibles
183 400 - - 121 51.2 Fair value
adjustment to Visa derivative
- 4,716 360 360 360 nm Loss on
early extinguishment of debt
- - - - 4,735 nm Litigation
settlement (recovery) expense
- - (189 ) - 2,700 nm
Restructuring charges, net
6,511 42 1,243 5,841 1,140 nm
Other operating expenses
21,312 23,886
21,059 21,366 21,944 (2.9 ) Total non-interest
expense
197,388 193,209 185,871
188,611 188,233 4.9 Income before income taxes
105,704 108,068 102,620 94,031 83,730 26.2 Income tax
expense
33,847 39,519 37,375
33,574 31,199 8.5 Net income
71,857 68,549 65,245 60,457 52,531 36.8 Dividends on
preferred stock
2,559 2,559 2,559
2,559 2,559 - Net income available to
common shareholders $
69,298 65,990 62,686
57,898 49,972 38.7 % Net income per common
share, basic $
0.57 0.54 0.51 0.46 0.39 44.3 % Net
income per common share, diluted
0.56 0.54 0.51 0.46 0.39
44.1 Cash dividends declared per common share
0.15
0.12 0.12 0.12 0.12 25.0 Return on average assets *
0.96 % 0.90 0.88 0.83 0.73
23
bps
Return on average common equity *
9.97 9.42 8.89 8.26 7.08
289 Weighted average common shares outstanding, basic
122,300 122,341 122,924 125,100 127,227 (3.9 )% Weighted
average common shares outstanding, diluted
123,059 123,187
123,604 125,699 127,857 (3.8 ) nm - not meaningful bps -
basis points * - ratios are annualized
Synovus
BALANCE SHEET DATA March 31, 2017 December 31, 2016
March 31, 2016
(Unaudited) (In thousands, except
share data) ASSETS Cash and cash equivalents $
380,493 395,175 352,060 Interest bearing funds with Federal
Reserve Bank
622,460 527,090 908,527 Interest earning
deposits with banks
24,259 18,720 21,686
Federal funds sold and securities
purchased under resale agreements
50,003 58,060 76,300 Trading account assets, at fair value
1,778 9,314 4,801 Mortgage loans held for sale, at fair
value
57,686 51,545 62,867 Investment securities available
for sale, at fair value
3,782,942 3,718,195 3,582,244
Loans, net of deferred fees and costs
24,258,468 23,856,391
22,758,203 Allowance for loan losses
(253,514
) (251,758 ) (254,516 ) Loans, net
24,004,954
23,604,633 22,503,687 Premises and
equipment, net
412,725 417,485 439,122 Goodwill
57,010 59,678 24,431 Other intangible assets
12,137
13,223 277 Other real estate
20,425 22,308 38,462 Deferred
tax asset, net
359,121 395,356 464,242 Other assets
893,596 813,220 692,551 Total
assets $
30,679,589 30,104,002 29,171,257
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities: Deposits: Non-interest bearing deposits $
7,264,856 7,085,804 6,896,547 Interest bearing deposits,
excluding brokered deposits
16,452,703 16,183,273 15,348,863
Brokered deposits
1,388,153 1,378,983
1,204,518 Total deposits
25,105,712 24,648,060
23,449,928
Federal funds purchased and securities
sold under repurchase agreements
146,480
159,699 203,979 Long-term debt
2,160,867 2,160,881 2,360,865
Other liabilities
304,403 207,438
203,217 Total liabilities
27,717,462
27,176,078 26,217,989
Shareholders’ equity:
Series C Preferred Stock - no par value,
5,200,000 shares outstanding at March 31, 2017, December 31, 2016,
and March 31, 2016
125,980
125,980 125,980
Common stock - $1.00 par value.
122,321,804 shares outstanding at March 31, 2017, 122,266,106
shares outstanding at December 31, 2016, and 125,849,939 shares
outstanding at March 31, 2016
142,441
142,026 140,794 Additional paid-in capital
3,025,775
3,028,405 2,989,854
Treasury stock, at cost - 20,119,614
shares at March 31, 2017, 19,759,614 shares at December 31, 2016,
and 14,943,977 shares at March 31, 2016
(679,746
)
(664,595 ) (512,496 ) Accumulated other comprehensive loss
(54,751 ) (55,659 ) (740 ) Retained earnings
402,428 351,767 209,876
Total shareholders’ equity
2,962,127 2,927,924 2,953,268
Total liabilities and shareholders’
equity
$
30,679,589 30,104,002 29,171,257
Synovus
AVERAGE BALANCES AND YIELDS/RATES (1)
(Unaudited) (Dollars in thousands)
2017
2016
First Fourth Third Second First
Quarter
Quarter Quarter Quarter
Quarter Interest Earning Assets Taxable investment securities (2) $
3,841,556 3,643,510 3,544,933 3,529,030 3,537,131 Yield
2.06 % 1.92 1.83 1.89 1.91 Tax-exempt investment
securities (2) (4) $
2,730 2,824 2,943 3,491 4,091 Yield
(taxable equivalent)
5.81 % 5.82 5.96 6.08 6.37
Trading account assets $
6,443 6,799 5,493 3,803 5,216 Yield
1.72 % 2.63 0.93 1.27 1.65 Commercial loans (3) (4) $
19,043,384 18,812,659 18,419,484 18,433,638 18,253,169 Yield
4.16 % 4.05 4.03 4.04 4.03 Consumer loans (3) $
4,992,682 4,911,149 4,720,082 4,497,147 4,334,817 Yield
4.40 % 4.27 4.30 4.32 4.37 Allowance for loan losses
$
(253,927 ) (253,713 )
(255,675 ) (251,101 ) (258,097 )
Loans, net (3) $
23,782,139 23,470,095 22,883,891 22,679,684
22,329,889 Yield
4.25 % 4.14 4.14 4.15 4.15 Mortgage
loans held for sale $
46,554 77,652 87,524 72,477 63,339
Yield
4.01 % 3.51 3.32 3.59 3.72
Federal funds sold, due from Federal
Reserve Bank, and other short-term investments
$
654,322 982,355 998,565 907,614 885,938 Yield
0.77
% 0.49 0.48 0.47 0.47 Federal Home Loan Bank and Federal
Reserve Bank stock (5) $
170,844 121,079 70,570 77,571
80,679 Yield
3.42 % 3.75 4.99 5.15 3.82
Total interest earning assets $
28,504,589
28,304,314 27,593,919 27,273,670 26,906,283 Yield
3.88 % 3.73 3.71
3.73 3.73 Interest
Bearing Liabilities Interest bearing demand deposits $
4,784,329 4,488,135 4,274,117 4,233,310 4,198,738 Rate
0.19 % 0.16 0.16 0.18 0.17 Money market accounts $
7,424,627 7,359,067 7,227,030 7,082,759 7,095,778 Rate
0.31 % 0.29 0.29 0.31 0.32 Savings deposits $
909,660 908,725 797,961 746,225 722,172 Rate
0.11 %
0.12 0.07 0.06 0.07 Time deposits under $100,000 $
1,215,593 1,229,809 1,248,294 1,262,280 1,279,811 Rate
0.64 % 0.64 0.64 0.64 0.65 Time deposits over
$100,000 $
2,029,713 2,014,564 2,030,242 2,016,116 2,006,302
Rate
0.92 % 0.90 0.88 0.89 0.89 Non maturing brokered
deposits $
619,627 638,779 634,596 451,398 315,006 Rate
0.41 % 0.31 0.29 0.39 0.48 Brokered time deposits $
761,159 742,153 775,143 885,603 780,233 Rate
0.92 % 0.90 0.88
0.85 0.83 Total
interest bearing deposits $
17,744,708 17,381,232 16,987,383
16,677,691 16,398,040 Rate
0.39 % 0.37 0.37 0.39 0.39
Federal funds purchased and securities
sold under repurchase agreements
$
176,854 219,429 247,378 221,276 177,921 Rate
0.09 %
0.08 0.09 0.09 0.10 Long-term debt $
2,184,072
2,190,716 2,114,193 2,279,043 2,361,973 Rate
2.83 % 2.65
2.71 2.55 2.55
Total interest
bearing liabilities $
20,105,634 19,791,377 19,348,954
19,178,010 18,937,934 Rate
0.65 % 0.62
0.63 0.65
0.66 Non-interest bearing demand deposits $
7,174,146 7,280,033 7,042,908 6,930,336 6,812,223
Effective cost of funds
0.46 % 0.44 0.44 0.46 0.46
Net interest margin
3.42
% 3.29 3.27
3.27 3.27 Taxable equivalent
adjustment $
309 322 330 329 305 (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 35%, in
adjusting interest on tax-exempt loans and investment securities to
a taxable-equivalent basis.
(5) Included as a component of Other Assets on the consolidated
balance sheet
Synovus
NON-PERFORMING LOANS COMPOSITION (Unaudited)
(Dollars in thousands)
Total Total Total
Non-performing
Non-performing 1Q17 vs. 4Q16 Non-performing 1Q17 vs. 1Q16 Loan Type
Loans Loans
% change (1)
Loans % change
March 31, 2017 December 31, 2016
March 31, 2016
Multi-Family $
1,556 1,853 (65.0 )% $ 223 nm Hotels
323 335 (14.5 ) 369 (12.5 )% Office Buildings
185
1,380 (351.2 ) 2,590 (92.9 ) Shopping Centers
- 354 (405.6 )
- nm Warehouses
226 592 (250.7 ) 1,150 (80.3 ) Other
Investment Property
750 754 (2.2 )
11,498 (93.5 )
Total Investment Properties 3,040 5,268 (171.5 )
15,830 (80.8 ) 1-4 Family Construction
306 305
1.3 430 (28.8 ) 1-4 Family Investment Mortgage
8,497
8,809 (14.4 ) 7,255 17.1
Total 1-4 Family Properties 8,803 9,114 (13.8 ) 7,685
14.5 Commercial Development
205 168 89.3 7,919 (97.4
) Residential Development
9,033 8,994 1.8 9,673 (6.6 ) Land
Acquisition
5,114 7,071 (112.2 )
14,416 (64.5 )
Land and Development
14,352 16,233 (47.0 ) 32,008
(55.2 )
Total Commercial Real Estate 26,195
30,615 (58.6 ) 55,523 (52.8 )
Commercial, Financial, and Agricultural
60,381 59,074 9.0 63,312 (4.6 ) Owner-Occupied
26,564 16,503 247.2 18,582
43.0
Total Commercial & Industrial 86,945
75,577 61.0 81,894 6.2
Home Equity Lines
22,918 21,551 25.7 16,432 39.5
Consumer Mortgages
19,874 22,681 (50.2 ) 21,756 (8.7 )
Credit Cards
- - nm - nm Other Consumer Loans
2,434 2,954 (71.4 ) 2,562 (5.0 )
Total Consumer 45,226 47,186
(16.8 ) 40,750 11.0
Total $
158,366 153,378 13.2 % $ 178,167 (11.1
)% (1) Percentage change is annualized.
LOANS
OUTSTANDING BY TYPE COMPARISON (Unaudited) (Dollars in
thousands)
Total Loans Total Loans 1Q17 vs. 4Q16 Total Loans
1Q17 vs. 1Q16 Loan Type
March 31, 2017 December 31, 2016 %
change (1) March 31, 2016 % change
Multi-Family $
1,638,250
1,568,234 18.1 % $ 1,524,850 7.4 % Hotels
794,685 748,951
24.8 718,640 10.6 Office Buildings
1,581,460 1,568,328 3.4
1,557,608 1.5 Shopping Centers
902,954 964,325 (25.8 )
963,520 (6.3 ) Warehouses
504,619 486,300 15.3 568,662 (11.3
) Other Investment Property
594,084 533,123
46.4 561,614 5.8
Total
Investment Properties 6,016,052 5,869,261 10.1 5,894,894
2.1 1-4 Family Construction
203,151 190,477 27.0
211,312 (3.9 ) 1-4 Family Investment Mortgage
658,120
696,830 (22.5 ) 787,354 (16.4 )
Total 1-4 Family Properties 861,271 887,307 (11.9 )
998,666 (13.8 ) Commercial Development
58,537 63,358
(30.9 ) 88,251 (33.7 ) Residential Development
130,653
136,514 (17.4 ) 161,942 (19.3 ) Land Acquisition
392,710 409,534 (16.7 ) 469,882
(16.4 )
Land and Development 581,900
609,406 (18.3 ) 720,075 (19.2 )
Total Commercial Real Estate 7,459,223
7,365,974 5.1 7,613,635 (2.0 )
Commercial, Financial, and Agricultural
7,056,032
6,915,927 8.2 6,537,253 7.9 Owner-Occupied
4,684,734
4,636,016 4.3 4,272,219 9.7
Total Commercial & Industrial
11,740,766 11,551,943 6.6
10,809,472 8.6 Home Equity Lines
1,587,102 1,617,265 (7.6 ) 1,669,406 (4.9 ) Consumer
Mortgages
2,350,730 2,296,604 9.6 1,970,193 19.3 Credit
Cards
224,349 232,413 (14.1 ) 232,554 (3.5 ) Other Consumer
Loans
922,018 818,183 51.5
492,274 87.3
Total Consumer
5,084,199 4,964,465 9.8
4,364,427 16.5
Unearned Income
(25,720 ) (25,991 ) (4.2 ) (29,331 ) (12.3 )
Total $
24,258,468 23,856,391
6.8 % $ 22,758,203 6.6 % (1) Percentage change
is annualized.
Synovus
CREDIT QUALITY DATA (Unaudited) (Dollars in
thousands)
2017
2016
1st Quarter
First Fourth Third Second First '17 vs. '16
Quarter
Quarter Quarter Quarter Quarter Change Non-performing Loans
$
158,366 153,378 148,155 154,072 178,167 (11.1 )% Impaired
Loans Held for Sale (1)
8,442 - 2,473 - - nm Other Real
Estate
20,425 22,308 28,438 33,289 38,462
(46.9 ) Non-performing Assets
187,233 175,686 179,066
187,361 216,629 (13.6 ) Allowance for loan losses
253,514 251,758 253,817 255,076 254,516 (0.4 ) Net
Charge-Offs - Quarter
6,919 8,319 6,930 6,133 7,357 (6.0 )
Net Charge-Offs / Average Loans - Quarter (2)
0.12 % 0.14
0.12 0.11 0.13 Non-performing Loans / Loans
0.65 0.64
0.64 0.67 0.78 Non-performing Assets / Loans, Other Loans Held for
Sale & ORE
0.77 0.74 0.77 0.81 0.95 Allowance / Loans
1.05 1.06 1.09 1.11 1.12 Allowance / Non-performing
Loans
160.08 164.14 171.32 165.56 142.85 Allowance /
Non-performing Loans (3)
204.94 202.01 198.94 195.25 173.64
Past Due Loans over 90 days and Still Accruing $
2,777 3,135 5,358 5,964 3,214 (13.6 ) As a Percentage of
Loans Outstanding
0.01 % 0.01 0.02 0.03 0.01 Total
Past Due Loans and Still Accruing $
62,137 65,106 61,781
55,716 63,852 (2.7 ) As a Percentage of Loans Outstanding
0.26 % 0.27 0.27 0.24 0.28 Accruing Troubled Debt
Restructurings (TDRs) $
172,421 195,776 201,896 205,165
209,159 (17.6 )
(1) Represent only impaired loans that
have been specifically identified to be sold. Impaired loans held
for sale are carried at the lower of cost or fair value, less costs
to sell, based primarily on estimated sales proceeds net of selling
costs.
(2) Ratio is annualized. (3) Excludes non-performing loans for
which the expected loss has been charged off.
SELECTED CAPITAL INFORMATION (1)
(Unaudited) (Dollars in thousands)
March 31,2017
December 31,2016
March 31,2016
Tier 1 Capital $
2,758,795 2,685,880 2,609,191
Total Risk-Based Capital
3,274,612 3,201,268 3,183,901
Common Equity Tier 1 Ratio (transitional)
9.86 % 9.96 10.04
Common Equity Tier 1 Ratio (fully phased-in)
9.63 9.51 9.47
Tier 1 Capital Ratio
10.18 10.07 10.04 Total Risk-Based
Capital Ratio
12.09 12.01 12.25 Tier 1 Leverage Ratio
9.13 8.99 9.15 Common Equity as a Percentage of Total Assets
(2)
9.24 9.31 9.69 Tangible Common Equity as a Percentage of
Tangible Assets (3)
9.04 9.09 9.62 Tangible Common Equity as
a Percentage of Risk Weighted Assets (3)
10.21 10.24 10.79
Book Value Per Common Share (4) $
23.19 22.92 22.47 Tangible
Book Value Per Common Share (3)
22.62 22.32 22.27 (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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170417005847/en/
Synovus Financial Corp.Media
Contact:Lee Underwood, 706-644-0528Media
RelationsorInvestor Contact:Bob
May, 706-649-3555Investor Relations
Synovus Financial (NYSE:SNV)
Historical Stock Chart
From Aug 2024 to Sep 2024
Synovus Financial (NYSE:SNV)
Historical Stock Chart
From Sep 2023 to Sep 2024