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Synovus Announces Earnings for the First Quarter 2022

Diluted Earnings per Share of $1.11 vs. $1.19 in 1Q21

Adjusted Diluted Earnings per Share of $1.08 vs. $1.21 in 1Q21

Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended March 31, 2022. “Performance during the first quarter reflects strong execution against our profitable growth objectives, evidenced by 11 percent annualized loan growth and adjusted pre-provision net revenue of $213 million, up 9% year-over-year,” said Synovus President and CEO Kevin Blair. “In a rapidly changing landscape that presented new challenges, our team excelled, enabling an increase in our financial expectations for 2022. Leveraging the strength of our core franchise while leaning into our solid, transformational growth plan, we will enhance performance throughout the year while proactively pursuing new and expanded sources of revenue. I remain confident in the strength and capabilities of our team and our ability to achieve sustainable top quartile performance.”

First Quarter 2022 Highlights

  • Net income available to common shareholders of $162.7 million, or $1.11 per diluted share, down $0.20 sequentially and down $0.08 compared to prior year.
    • Adjusted diluted EPS of $1.08, down $0.27 sequentially and down $0.13 compared to prior year. Year-over-year decline was primarily due to increased provision for credit losses.
  • Period-end loans increased $857.2 million sequentially, and $1.05 billion, or 11.0% annualized, excluding Paycheck Protection program (PPP) loans.
  • Core transaction deposits (non-interest bearing, NOW/savings, and money market deposits excluding public and brokered funds) increased $405.0 million sequentially, or 4% annualized, largely due to growth in non-interest bearing and savings deposits.
    • Total deposit costs of 0.11% down 1 bp sequentially primarily due to mix optimization.
  • Pre-provision net revenue of $225.1 million increased $7.5 million, or 3%, compared to prior year.
    • Adjusted pre-provision net revenue of $213.4 million increased $17.3 million, or 9%, compared to prior year driven primarily by growth in net interest income excluding PPP fees of over $36 million, or 10%.

First Quarter Summary

 

Reported

 

Adjusted

(dollars in thousands)

1Q22

 

4Q21

 

1Q21

 

1Q22

 

4Q21

 

1Q21

Net income available to common shareholders

$

162,746

 

$

192,110

 

$

178,802

 

$

158,368

 

$

198,373

 

$

180,685

 

Diluted earnings per share

 

1.11

 

 

1.31

 

 

1.19

 

 

1.08

 

 

1.35

 

 

1.21

 

Total loans

 

40,169,150

 

 

39,311,958

 

 

38,805,101

 

 

N/A

 

 

N/A

 

 

N/A

 

Total deposits

 

48,656,244

 

 

49,427,276

 

 

47,368,951

 

 

N/A

 

 

N/A

 

 

N/A

 

Total TE(1) revenue

 

498,447

 

 

510,265

 

 

485,587

 

 

499,742

 

 

509,040

 

 

486,785

 

Return on avg assets

 

1.22

%

 

1.40

%

 

1.40

%

 

1.19

%

 

1.44

%

 

1.41

%

Return on avg common equity

 

14.20

 

 

16.11

 

 

15.77

 

 

13.82

 

 

16.64

 

 

15.93

 

Return on avg tangible common equity

 

16.02

 

 

18.14

 

 

17.85

 

 

15.59

 

 

18.72

 

 

18.04

 

Net interest margin

 

3.00

 

 

2.96

 

 

3.04

 

 

N/A

 

 

N/A

 

 

N/A

 

Efficiency ratio-TE(1)

 

54.66

 

 

57.85

 

 

55.01

 

 

55.50

 

 

55.64

 

 

54.12

 

NCO ratio-QTD

 

0.19

 

 

0.11

 

 

0.21

 

 

N/A

 

 

N/A

 

 

N/A

 

NPA ratio

 

0.40

 

 

0.40

 

 

0.50

 

 

N/A

 

 

N/A

 

 

N/A

 

(1) Taxable equivalent

Balance Sheet

Loans*

 

 

 

 

 

 

 

 

(dollars in millions)

1Q22

 

4Q21

 

Linked

Quarter

Change

 

Linked

Quarter %

Change

 

1Q21

 

Year/Year

Change

 

Year/Year

% Change

Commercial & industrial

$

20,352.3

$

19,622.9

$

729.4

 

4

%

$

19,779.6

$

572.7

3

%

Commercial real estate

 

11,145.3

 

11,015.1

 

130.2

 

1

 

 

10,533.9

 

611.4

6

 

Consumer

 

8,671.5

 

8,673.9

 

(2.4

)

 

 

8,491.6

 

179.9

2

 

Total loans

$

40,169.2

$

39,312.0

$

857.2

 

2

%

$

38,805.1

$

1,364.0

4

%

 

*Amounts may not total due to rounding

  • Total loans ended the quarter at $40.17 billion, up $857.2 million sequentially, and $1.05 billion, or 11.0% annualized, excluding PPP loans.
  • Commercial and industrial (C&I) loans increased $729.4 million sequentially, led by broad based growth within our Wholesale Banking segment, partially offset by declines in PPP loan balances of $196.7 million.
  • CRE loans increased $130.2 million, with payoff activity down from elevated levels seen in the second half of 2021.
  • Consumer loans decreased $2.4 million sequentially.

Deposits*

 

 

 

 

 

 

 

 

(dollars in millions)

1Q22

 

4Q21

 

Linked

Quarter

Change

 

Linked

Quarter %

Change

 

1Q21

 

Year/Year

Change

 

Year/Year

% Change

Non-interest-bearing DDA

$

15,526.7

$

15,242.8

$

283.8

 

2

%

$

13,742.1

$

1,784.6

 

13

%

Interest-bearing DDA

 

6,685.4

 

6,347.0

 

338.4

 

5

 

 

5,841.7

 

843.6

 

14

 

Money market

 

14,596.9

 

14,886.4

 

(289.5

)

(2

)

 

13,943.7

 

653.2

 

5

 

Savings

 

1,476.7

 

1,404.4

 

72.3

 

5

 

 

1,277.0

 

199.7

 

16

 

Public funds

 

6,048.7

 

6,284.6

 

(235.8

)

(4

)

 

6,154.9

 

(106.2

)

(2

)

Time deposits

 

2,284.2

 

2,427.1

 

(142.9

)

(6

)

 

3,214.8

 

(930.6

)

(29

)

Brokered deposits

 

2,037.7

 

2,835.0

 

(797.3

)

(28

)

 

3,194.7

 

(1,157.0

)

(36

)

Total deposits

$

48,656.2

$

49,427.3

$

(771.0

)

(2

)%

$

47,369.0

$

1,287.3

 

3

%

 

*Amounts may not total due to rounding

  • Total deposits ended the quarter at $48.66 billion, down $771.0 million sequentially.
  • Core transaction deposits increased $405.0 million sequentially, or 4% annualized.
    • Growth of $283.8 million in non-interest bearing deposits and $72.3 million in savings deposits.
  • Total deposit costs declined 1 bp sequentially to 0.11% due to mix optimization.

Income Statement Summary**

 

 

 

 

 

 

 

 

(in thousands, except per share data)

1Q22

 

4Q21

 

Linked

Quarter

Change

 

Linked

Quarter %

Change

 

1Q21

 

Year/Year

Change

 

Year/Year

% Change

Net interest income

$

392,248

$

392,313

 

$

(65

)

%

$

373,857

 

$

18,391

 

5

%

Non-interest revenue

 

105,334

 

117,068

 

 

(11,734

)

(10

)

 

110,956

 

 

(5,622

)

(5

)

Non-interest expense

 

272,450

 

295,207

 

 

(22,757

)

(8

)

 

267,134

 

 

5,316

 

2

 

Provision for (reversal of) credit losses

 

11,400

 

(55,210

)

 

66,610

 

nm

 

 

(18,575

)

 

29,975

 

nm

 

Income before taxes

$

213,732

$

269,384

 

$

(55,652

)

(21

)%

$

236,254

 

$

(22,522

)

(10

)%

Income tax expense

 

42,695

 

68,983

 

 

(26,288

)

(38

)

 

49,161

 

 

(6,466

)

(13

)

Preferred stock dividends

 

8,291

 

8,291

 

 

 

 

 

8,291

 

 

 

 

Net income available to common shareholders

$

162,746

$

192,110

 

$

(29,364

)

(15

)%

$

178,802

 

$

(16,056

)

(9

)%

Weighted average common shares outstanding, diluted

 

146,665

 

146,793

 

 

(128

)

%

 

149,780

 

 

(3,115

)

(2

)%

Diluted earnings per share

$

1.11

$

1.31

 

$

(0.20

)

(15

)

$

1.19

 

$

(0.08

)

(7

)

Adjusted diluted earnings per share

 

1.08

 

1.35

 

 

(0.27

)

(20

)

 

1.21

 

 

(0.13

)

(11

)

 

** Amounts may not total due to rounding

Core Performance

  • Net interest income of $392.2 million was flat sequentially, despite lower day count and PPP fees, and increased $18.4 million, or 5%, compared to prior year.
    • Net PPP fee accretion of $6.9 million, down $5.8 million sequentially and down $18.0 million year-over-year.
    • Net interest margin was 3.00%, up 4 bps sequentially, aided by efficient balance sheet management.
  • Non-interest revenue decreased $11.7 million, or 10%, sequentially and decreased $5.6 million, or 5%, compared to prior year. Adjusted non-interest revenue decreased $9.2 million, or 8%, sequentially and decreased $5.5 million, or 5%, compared to prior year.
    • Quarter-over-quarter decline was primarily related to an $8 million BOLI benefit in the previous quarter.
    • Year-over-year decline was primarily due to lower mortgage banking income resulting from increasing mortgage rates and lower refinancing volumes.
  • Non-interest expense decreased $22.8 million, or 8%, sequentially and increased $5.3 million, or 2%, compared to prior year. Adjusted non-interest expense decreased $6.1 million, or 2%, sequentially and increased $13.7 million, or 5%, compared to prior year.
    • Quarter-over-quarter decline was a result of prudent expense management and the normalization of expense from an unusually high fourth quarter of 2021.
    • Year-over-year increase was primarily due to incentives and costs associated with elevated performance.
  • Credit quality ratios remain strong and near historical lows. The net charge-off ratio for the quarter was 0.19%; both the non-performing loan and asset ratios remained flat at 0.33% and 0.40%, respectively; and total past dues were 0.11% of total loans outstanding.
  • Provision for credit losses of $11.4 million compared to a reversal of provision for credit losses of $55.2 million for the fourth quarter of 2021; allowance for credit losses coverage ratio (to loans) of 1.15%, a decline of 4 bps sequentially. Drivers of the decline included positive trends in our credit performance and loan mix mostly offset by economic uncertainty which slowed the pace of the allowance decline this quarter.
  • The effective tax rate was 19.98% for the quarter.

Capital Ratios

 

 

 

 

 

 

1Q22

 

4Q21

 

1Q21

Common equity Tier 1 capital (CET1) ratio

9.47

%

*

9.50

%

9.74

%

Tier 1 capital ratio

10.60

 

*

10.66

 

10.99

 

Total risk-based capital ratio

12.53

 

*

12.61

 

13.34

 

Tier 1 leverage ratio

8.87

 

*

8.72

 

8.80

 

Tangible common equity ratio

6.80

 

 

7.52

 

7.55

 

* Ratios are preliminary.

Capital

  • Preliminary CET1 ratio declined 3 bps during the quarter to 9.47%, and the preliminary total risk-based capital ratio of 12.53% declined 8 bps from the previous quarter as capital generated through earnings helped offset the impact of loan growth and a $0.34 dividend for common shareholders.

First Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on April 21, 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 $56 billion in assets. Synovus provides commercial and retail 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, and international banking through 272 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 revenue; adjusted non-interest expense; total adjusted revenue; adjusted tangible efficiency ratio; adjusted pre-provision net revenue; 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 TE revenue; efficiency ratio-TE; pre-provision net revenue; 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 TE revenue and non-interest revenue exclusive of net investment securities gains (losses) and fair value adjustment on non-qualified deferred compensation. 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 pre-provision net revenue is used by management to evaluate pre-tax earnings exclusive of provision for credit losses, which can vary significantly, and other items that management believes are not indicative of ongoing operations and affect period-to-period comparisons. 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)

1Q22

 

4Q21

 

1Q21

Adjusted non-interest revenue

 

 

 

Total non-interest revenue

$

105,334

 

$

117,068

 

$

110,956

 

Subtract/add: Investment securities (gains) losses, net

 

 

 

(230

)

 

1,990

 

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

 

1,295

 

 

(995

)

 

(792

)

Adjusted non-interest revenue

$

106,629

 

$

115,843

 

$

112,154

 

 

 

 

 

Adjusted non-interest expense

 

 

 

Total non-interest expense

$

272,450

 

$

295,207

 

$

267,134

 

Subtract/add: Restructuring charges

 

6,424

 

 

(5,958

)

 

(531

)

Subtract: Valuation adjustment to Visa derivative

 

 

 

(2,656

)

 

 

Subtract: Loss on early extinguishment of debt, net

 

(677

)

 

 

 

 

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

 

1,295

 

 

(995

)

 

(792

)

Adjusted non-interest expense

$

279,492

 

$

285,598

 

$

265,811

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

(dollars in thousands)

1Q22

4Q21

1Q21

Total adjusted revenue and adjusted tangible efficiency ratio

 

 

 

Adjusted non-interest expense

$

279,492

 

$

285,598

 

$

265,811

 

Subtract: Amortization of intangibles

 

(2,118

)

 

(2,379

)

 

(2,379

)

Adjusted tangible non-interest expense

$

277,374

 

$

283,219

 

$

263,432

 

 

 

 

 

Net interest income

$

392,248

 

$

392,313

 

$

373,857

 

Add: Tax equivalent adjustment

 

865

 

 

884

 

 

774

 

Add: Total non-interest revenue

 

105,334

 

 

117,068

 

 

110,956

 

Total TE revenue

 

498,447

 

 

510,265

 

 

485,587

 

Subtract/add: Investment securities (gains) losses, net

 

 

 

(230

)

 

1,990

 

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

 

1,295

 

 

(995

)

 

(792

)

Total adjusted revenue

$

499,742

 

$

509,040

 

$

486,785

 

Efficiency ratio-TE

 

54.66

%

 

57.85

%

 

55.01

%

Adjusted tangible efficiency ratio

 

55.50

 

 

55.64

 

 

54.12

 

 

 

 

 

Adjusted pre-provision net revenue

 

 

 

Net interest income

$

392,248

 

$

392,313

 

$

373,857

 

Add: Total non-interest revenue

 

105,334

 

 

117,068

 

 

110,956

 

Subtract: Non-interest expense

 

272,450

 

 

295,207

 

 

267,134

 

Pre-provision net revenue

$

225,132

 

$

214,174

 

$

217,679

 

 

 

 

 

Total adjusted revenue

$

499,742

 

$

509,040

 

$

486,785

 

Subtract: Adjusted non-interest expense

 

279,492

 

 

285,598

 

 

265,811

 

Subtract: PPP fees

 

6,885

 

 

12,684

 

 

24,890

 

Adjusted pre-provision net revenue

$

213,365

 

$

210,758

 

$

196,084

 

Adjusted return on average assets

 

 

 

Net income

$

171,037

 

$

200,401

 

$

187,093

 

Add/subtract: Restructuring charges

 

(6,424

)

 

5,958

 

 

531

 

Add: Valuation adjustment to Visa derivative

 

 

 

2,656

 

 

 

Add: Loss on early extinguishment of debt, net

 

677

 

 

 

 

 

Subtract/add: Investment securities (gains) losses, net

 

 

 

(230

)

 

1,990

 

Add/subtract: Tax effect of adjustments (1)

 

1,369

 

 

(2,121

)

 

(638

)

Adjusted net income

$

166,659

 

$

206,664

 

$

188,976

 

Net income annualized

$

693,650

 

$

795,069

 

$

758,766

 

Adjusted net income annualized

$

675,895

 

$

819,917

 

$

766,403

 

Total average assets

$

56,855,898

 

$

56,911,929

 

$

54,188,504

 

Return on average assets

 

1.22

%

 

1.40

%

 

1.40

%

Adjusted return on average assets

 

1.19

 

 

1.44

 

 

1.41

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

(dollars in thousands)

1Q22

 

4Q21

 

1Q21

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

 

 

 

Net income available to common shareholders

$

162,746

 

$

192,110

 

$

178,802

 

Add/subtract: Restructuring charges

 

(6,424

)

 

5,958

 

 

531

 

Add: Valuation adjustment to Visa derivative

 

 

 

2,656

 

 

 

Add: Loss on early extinguishment of debt, net

 

677

 

 

 

 

 

Subtract/add: Investment securities (gains) losses, net

 

 

 

(230

)

 

1,990

 

Add/subtract: Tax effect of adjustments (1)

 

1,369

 

 

(2,121

)

 

(638

)

Adjusted net income available to common shareholders

$

158,368

 

$

198,373

 

$

180,685

 

Weighted average common shares outstanding, diluted

 

146,665

 

 

146,793

 

 

149,780

 

Diluted earnings per share

$

1.11

 

$

1.31

 

$

1.19

 

Adjusted diluted earnings per share

 

1.08

 

 

1.35

 

 

1.21

 

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

$

162,746

 

$

192,110

 

$

178,802

 

Add/subtract: Restructuring charges

 

(6,424

)

 

5,958

 

 

531

 

Add: Valuation adjustment to Visa derivative

 

 

 

2,656

 

 

 

Add: Loss on early extinguishment of debt, net

 

677

 

 

 

 

 

Subtract/add: Investment securities (gains) losses, net

 

 

 

(230

)

 

1,990

 

Add/subtract: Tax effect of adjustments (1)

 

1,369

 

 

(2,121

)

 

(638

)

Adjusted net income available to common shareholders

$

158,368

 

$

198,373

 

$

180,685

 

 

 

 

 

Adjusted net income available to common shareholders annualized

$

642,270

 

$

787,023

 

$

732,778

 

Add: Amortization of intangibles, annualized net of tax

 

6,543

 

 

7,050

 

 

7,207

 

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

$

648,813

 

$

794,073

 

$

739,985

 

 

 

 

 

Net income available to common shareholders annualized

$

660,025

 

$

762,176

 

$

725,141

 

Add: Amortization of intangibles, annualized net of tax

 

6,543

 

 

7,050

 

 

7,207

 

Net income available to common shareholders excluding amortization of intangibles annualized

$

666,568

 

$

769,226

 

$

732,348

 

 

 

 

 

Total average shareholders' equity less preferred stock

$

4,647,426

 

$

4,730,828

 

$

4,599,076

 

Subtract: Goodwill

 

(452,390

)

 

(452,390

)

 

(452,390

)

Subtract: Other intangible assets, net

 

(34,576

)

 

(36,805

)

 

(44,005

)

Total average tangible shareholders' equity less preferred stock

$

4,160,460

 

$

4,241,633

 

$

4,102,681

 

Return on average common equity

 

14.20

%

 

16.11

%

 

15.77

%

Adjusted return on average common equity

 

13.82

 

 

16.64

 

 

15.93

 

Return on average tangible common equity

 

16.02

 

 

18.14

 

 

17.85

 

Adjusted return on average tangible common equity

 

15.59

 

 

18.72

 

 

18.04

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

(dollars in thousands)

March 31,

2022

 

December 31,

2021

 

March 31,

2021

 

 

 

 

Tangible common equity ratio

 

 

 

Total assets

$

56,419,549

 

$

57,317,226

 

$

55,159,011

 

Subtract: Goodwill

 

(452,390

)

 

(452,390

)

 

(452,390

)

Subtract: Other intangible assets, net

 

(33,478

)

 

(35,596

)

 

(42,733

)

Tangible assets

$

55,933,681

 

$

56,829,240

 

$

54,663,888

 

 

 

 

 

Total shareholders’ equity

$

4,824,635

 

$

5,296,800

 

$

5,161,717

 

Subtract: Goodwill

 

(452,390

)

 

(452,390

)

 

(452,390

)

Subtract: Other intangible assets, net

 

(33,478

)

 

(35,596

)

 

(42,733

)

Subtract: Preferred Stock, no par value

 

(537,145

)

 

(537,145

)

 

(537,145

)

Tangible common equity

$

3,801,622

 

$

4,271,669

 

$

4,129,449

 

Total shareholders’ equity to total assets ratio

 

8.55

%

 

9.24

%

 

9.36

%

Tangible common equity ratio

 

6.80

 

 

7.52

 

 

7.55

 

 

 

 

 

(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)

2022

 

2021

 

First Quarter

 

First

 

Fourth

 

Third

 

Second

 

First

 

'22 vs '21

 

Quarter

Quarter

Quarter

 

Quarter

 

Quarter

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

416,062

 

 

418,279

 

 

412,504

 

 

412,743

 

 

409,817

 

 

2

%

Interest expense

 

23,814

 

 

25,966

 

 

27,587

 

 

30,883

 

 

35,960

 

 

(34

)

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

392,248

 

 

392,313

 

 

384,917

 

 

381,860

 

 

373,857

 

 

5

 

Provision for (reversal of) credit losses

 

11,400

 

 

(55,210

)

 

(7,868

)

 

(24,598

)

 

(18,575

)

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for credit losses

 

380,848

 

 

447,523

 

 

392,785

 

 

406,458

 

 

392,432

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest revenue:

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

22,539

 

 

22,221

 

 

22,641

 

 

21,414

 

 

20,033

 

 

13

 

Fiduciary and asset management fees

 

20,277

 

 

20,602

 

 

19,786

 

 

18,805

 

 

17,954

 

 

13

 

Card fees

 

14,756

 

 

12,861

 

 

13,238

 

 

13,304

 

 

11,996

 

 

23

 

Brokerage revenue

 

14,655

 

 

14,795

 

 

14,745

 

 

13,926

 

 

12,974

 

 

13

 

Mortgage banking income

 

5,953

 

 

7,059

 

 

11,155

 

 

13,842

 

 

22,315

 

 

(73

)

Capital markets income

 

5,472

 

 

7,188

 

 

8,089

 

 

3,335

 

 

7,505

 

 

(27

)

Income from bank-owned life insurance

 

6,556

 

 

15,168

 

 

6,820

 

 

7,188

 

 

8,843

 

 

(26

)

Investment securities gains (losses), net

 

 

 

230

 

 

962

 

 

 

 

(1,990

)

 

nm

Other non-interest revenue

 

15,126

 

 

16,944

 

 

17,519

 

 

15,273

 

 

11,326

 

 

34

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest revenue

 

105,334

 

 

117,068

 

 

114,955

 

 

107,087

 

 

110,956

 

 

(5

)

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

Salaries and other personnel expense

 

164,684

 

 

167,018

 

 

160,364

 

 

160,567

 

 

161,477

 

 

2

 

Net occupancy, equipment, and software expense

 

42,877

 

 

42,780

 

 

43,483

 

 

41,825

 

 

41,134

 

 

4

 

Third-party processing and other services

 

20,996

 

 

22,791

 

 

19,446

 

 

24,419

 

 

20,032

 

 

5

 

Professional fees

 

8,474

 

 

9,014

 

 

6,739

 

 

7,947

 

 

9,084

 

 

(7

)

FDIC insurance and other regulatory fees

 

6,250

 

 

6,016

 

 

5,212

 

 

5,547

 

 

5,579

 

 

12

 

Restructuring charges

 

(6,424

)

 

5,958

 

 

319

 

 

415

 

 

531

 

 

nm

Other operating expenses

 

35,593

 

 

41,630

 

 

31,469

 

 

29,811

 

 

29,297

 

 

21

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest expense

 

272,450

 

 

295,207

 

 

267,032

 

 

270,531

 

 

267,134

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

213,732

 

 

269,384

 

 

240,708

 

 

243,014

 

 

236,254

 

 

(10

)

Income tax expense

 

42,695

 

 

68,983

 

 

53,935

 

 

56,814

 

 

49,161

 

 

(13

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

171,037

 

 

200,401

 

 

186,773

 

 

186,200

 

 

187,093

 

 

(9

)

 

 

 

 

 

 

 

 

 

 

 

 

Less: Preferred stock dividends

 

8,291

 

 

8,291

 

 

8,291

 

 

8,291

 

 

8,291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

$

162,746

 

 

192,110

 

 

178,482

 

 

177,909

 

 

178,802

 

 

(9

)%

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, basic

$

1.12

 

 

1.32

 

 

1.22

 

 

1.20

 

 

1.20

 

 

(7

)%

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, diluted

 

1.11

 

 

1.31

 

 

1.21

 

 

1.19

 

 

1.19

 

 

(7

)

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

0.34

 

 

0.33

 

 

0.33

 

 

0.33

 

 

0.33

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets *

 

1.22

%

 

1.40

 

 

1.34

 

 

1.36

 

 

1.40

 

 

(18) bps

Return on average common equity *

 

14.20

 

 

16.11

 

 

14.96

 

 

15.40

 

 

15.77

 

 

(157

)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

145,273

 

 

145,316

 

 

146,308

 

 

148,113

 

 

148,467

 

 

(2

)%

Weighted average common shares outstanding, diluted

 

146,665

 

 

146,793

 

 

147,701

 

 

149,747

 

 

149,780

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

nm - not meaningful

bps - basis points

* - ratios are annualized

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET DATA

 

March 31, 2022

 

December 31, 2021

 

March 31, 2021

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Cash and due from banks

 

$

557,178

 

 

$

432,925

 

 

$

493,645

 

Interest-bearing funds with Federal Reserve Bank

 

 

941,272

 

 

 

2,479,006

 

 

 

2,722,100

 

Interest earning deposits with banks

 

 

27,411

 

 

 

25,535

 

 

 

23,969

 

Federal funds sold and securities purchased under resale agreements

 

 

27,642

 

 

 

72,387

 

 

 

88,552

 

Cash, cash equivalents, and restricted cash

 

 

1,553,503

 

 

 

3,009,853

 

 

 

3,328,266

 

 

 

 

 

 

 

 

Investment securities available for sale, at fair value

 

 

10,463,101

 

 

 

10,918,329

 

 

 

8,825,757

 

Loans held for sale ($111,992, $108,198, and $242,010 measured at fair value, respectively)

 

 

723,921

 

 

 

750,642

 

 

 

993,887

 

 

 

 

 

 

 

 

Loans, net of deferred fees and costs

 

 

40,169,150

 

 

 

39,311,958

 

 

 

38,805,101

 

Allowance for loan losses

 

 

(414,956

)

 

 

(427,597

)

 

 

(563,214

)

Loans, net

 

 

39,754,194

 

 

 

38,884,361

 

 

 

38,241,887

 

 

 

 

 

 

 

 

Cash surrender value of bank-owned life insurance

 

 

1,075,175

 

 

 

1,068,616

 

 

 

1,054,475

 

Premises, equipment, and software, net

 

 

386,631

 

 

 

407,241

 

 

 

454,911

 

Goodwill

 

 

452,390

 

 

 

452,390

 

 

 

452,390

 

Other intangible assets, net

 

 

33,478

 

 

 

35,596

 

 

 

42,733

 

Other assets

 

 

1,977,156

 

 

 

1,790,198

 

 

 

1,764,705

 

Total assets

 

$

56,419,549

 

 

$

57,317,226

 

 

$

55,159,011

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Non-interest-bearing deposits

 

$

16,611,344

 

 

$

16,392,653

 

 

$

14,660,287

 

Interest-bearing deposits

 

 

32,044,900

 

 

 

33,034,623

 

 

 

32,708,664

 

 

 

 

 

 

 

 

Total deposits

 

 

48,656,244

 

 

 

49,427,276

 

 

 

47,368,951

 

 

 

 

 

 

 

 

Federal funds purchased and securities sold under repurchase agreements

 

 

501,124

 

 

 

264,133

 

 

 

293,659

 

Long-term debt

 

 

805,259

 

 

 

1,204,229

 

 

 

1,202,825

 

Other liabilities

 

 

1,632,287

 

 

 

1,124,788

 

 

 

1,131,859

 

Total liabilities

 

 

51,594,914

 

 

 

52,020,426

 

 

 

49,997,294

 

 

 

 

 

 

 

 

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 169,912,021, 169,383,758, and 168,978,380; outstanding 145,334,763, 145,010,086, and 148,888,513

 

 

169,912

 

 

 

169,384

 

 

 

168,978

 

Additional paid-in capital

 

 

3,899,269

 

 

 

3,894,109

 

 

 

3,864,281

 

Treasury stock, at cost – 24,577,258, 24,373,672, and 20,089,867 shares

 

 

(941,168

)

 

 

(931,497

)

 

 

(731,690

)

Accumulated other comprehensive income (loss), net

 

 

(662,065

)

 

 

(82,321

)

 

 

15,278

 

Retained earnings

 

 

1,821,542

 

 

 

1,709,980

 

 

 

1,307,725

 

Total shareholders’ equity

 

 

4,824,635

 

 

 

5,296,800

 

 

 

5,161,717

 

Total liabilities and shareholders' equity

 

$

56,419,549

 

 

$

57,317,226

 

 

$

55,159,011

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES, INTEREST, AND YIELDS/RATES

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter 2022

 

Fourth Quarter 2021

 

First 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)

$

30,756,752

 

 

$

280,588

 

3.70

%

 

$

29,685,876

 

 

$

286,513

 

3.83

%

 

$

29,924,651

 

 

$

291,200

 

3.95

%

Consumer loans (1) (2)

 

8,594,009

 

 

 

81,368

 

3.81

 

 

 

8,679,721

 

 

 

83,836

 

3.89

 

 

 

8,287,616

 

 

 

82,065

 

3.83

 

Less: Allowance for loan losses

 

(423,953

)

 

 

 

 

 

 

(474,972

)

 

 

 

 

 

 

(599,872

)

 

 

 

 

Loans, net

 

38,926,808

 

 

 

361,956

 

3.76

 

 

 

37,890,625

 

 

 

370,349

 

3.88

 

 

 

37,612,395

 

 

 

373,265

 

4.02

 

Investment securities available for sale

 

11,259,800

 

 

 

47,250

 

1.68

 

 

 

10,884,571

 

 

 

41,447

 

1.52

 

 

 

8,437,563

 

 

 

29,458

 

1.40

 

Trading account assets

 

9,078

 

 

 

39

 

1.73

 

 

 

11,280

 

 

 

42

 

1.50

 

 

 

3,063

 

 

 

22

 

2.81

 

Other earning assets(4)

 

1,919,531

 

 

 

815

 

0.17

 

 

 

3,186,271

 

 

 

1,208

 

0.15

 

 

 

2,838,063

 

 

 

716

 

0.10

 

FHLB and Federal Reserve Bank stock

 

160,065

 

 

 

685

 

1.71

 

 

 

159,933

 

 

 

919

 

2.30

 

 

 

157,657

 

 

 

668

 

1.69

 

Mortgage loans held for sale

 

103,887

 

 

 

882

 

3.40

 

 

 

130,786

 

 

 

1,009

 

3.09

 

 

 

246,962

 

 

 

1,657

 

2.68

 

Other loans held for sale

 

597,062

 

 

 

5,300

 

3.55

 

 

 

518,992

 

 

 

4,189

 

3.16

 

 

 

660,753

 

 

 

4,805

 

2.91

 

Total interest earning assets

 

52,976,231

 

 

$

416,927

 

3.18

%

 

 

52,782,458

 

 

$

419,163

 

3.16

%

 

 

49,956,456

 

 

$

410,591

 

3.32

%

Cash and due from banks

 

548,684

 

 

 

 

 

 

 

541,788

 

 

 

 

 

 

 

518,738

 

 

 

 

 

Premises and equipment

 

398,774

 

 

 

 

 

 

 

421,577

 

 

 

 

 

 

 

460,466

 

 

 

 

 

Other real estate

 

11,759

 

 

 

 

 

 

 

1,351

 

 

 

 

 

 

 

1,823

 

 

 

 

 

Cash surrender value of bank-owned life insurance

 

1,070,886

 

 

 

 

 

 

 

1,067,004

 

 

 

 

 

 

 

1,051,520

 

 

 

 

 

Other assets(5)

 

1,849,564

 

 

 

 

 

 

 

2,097,751

 

 

 

 

 

 

 

2,199,501

 

 

 

 

 

Total assets

$

56,855,898

 

 

 

 

 

 

$

56,911,929

 

 

 

 

 

 

$

54,188,504

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$

9,549,527

 

 

$

2,372

 

0.10

%

 

$

9,165,054

 

 

$

2,238

 

0.10

%

 

$

8,570,753

 

 

$

2,973

 

0.14

%

Money market accounts

 

16,045,627

 

 

 

5,349

 

0.14

 

 

 

15,998,203

 

 

 

5,562

 

0.14

 

 

 

15,348,916

 

 

 

8,730

 

0.23

 

Savings deposits

 

1,460,648

 

 

 

67

 

0.02

 

 

 

1,408,858

 

 

 

65

 

0.02

 

 

 

1,219,288

 

 

 

49

 

0.02

 

Time deposits

 

3,009,795

 

 

 

2,138

 

0.29

 

 

 

3,163,062

 

 

 

2,599

 

0.33

 

 

 

4,155,302

 

 

 

7,042

 

0.69

 

Brokered deposits

 

2,788,124

 

 

 

3,733

 

0.54

 

 

 

2,836,841

 

 

 

3,980

 

0.56

 

 

 

3,369,333

 

 

 

6,224

 

0.75

 

Federal funds purchased and securities sold under repurchase agreements

 

194,352

 

 

 

11

 

0.02

 

 

 

227,664

 

 

 

24

 

0.04

 

 

 

209,448

 

 

 

34

 

0.07

 

Other short-term borrowings

 

4,653

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

982,423

 

 

 

10,144

 

4.13

 

 

 

1,203,959

 

 

 

11,498

 

3.82

 

 

 

1,202,613

 

 

 

10,908

 

3.63

 

Total interest-bearing liabilities

 

34,035,149

 

 

$

23,814

 

0.28

%

 

 

34,003,641

 

 

$

25,966

 

0.30

%

 

 

34,075,653

 

 

$

35,960

 

0.42

%

Non-interest-bearing demand deposits

 

16,491,643

 

 

 

 

 

 

 

16,545,203

 

 

 

 

 

 

 

13,791,286

 

 

 

 

 

Other liabilities

 

1,144,535

 

 

 

 

 

 

 

1,095,112

 

 

 

 

 

 

 

1,185,344

 

 

 

 

 

Shareholders' equity

 

5,184,571

 

 

 

 

 

 

 

5,267,973

 

 

 

 

 

 

 

5,136,221

 

 

 

 

 

Total liabilities and shareholders' equity

$

56,855,898

 

 

 

 

 

 

$

56,911,929

 

 

 

 

 

 

$

54,188,504

 

 

 

 

 

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

 

 

$

393,113

 

3.00

%

 

 

 

$

393,197

 

2.96

%

 

 

 

$

374,631

 

3.04

%

Less: taxable-equivalent adjustment

 

 

 

865

 

 

 

 

 

 

884

 

 

 

 

 

 

774

 

 

Net interest income

 

 

$

392,248

 

 

 

 

 

$

392,313

 

 

 

 

 

$

373,857

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

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

(2)

Interest income includes net loan fees as follows: First Quarter 2022 — $20.7 million, Fourth Quarter 2021 — $24.7 million, and First Quarter 2021 — $31.9 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 $(247.4) million, $(34.2) million, and $116.1 million for the First Quarter 2022, Fourth Quarter 2021, and First 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

 

 

 

 

 

 

 

 

 

 

LOANS OUTSTANDING BY TYPE

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

Total Loans

 

Total Loans

 

Linked Quarter

 

Total Loans

 

Year/Year

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

Loan Type

 

March 31,

2022

 

December 31,

2021

 

%

Change

 

March 31,

2021

 

%

Change

Commercial, Financial, and Agricultural

 

$

12,659,611

 

$

12,147,858

 

4

%

 

$

12,748,106

 

(1

)%

Owner-Occupied

 

 

7,692,714

 

 

7,475,066

 

3

 

 

 

7,031,505

 

9

 

Total Commercial & Industrial

 

 

20,352,325

 

 

19,622,924

 

4

 

 

 

19,779,611

 

3

 

Multi-Family

 

 

2,288,497

 

 

2,129,424

 

7

 

 

 

2,220,939

 

3

 

Hotels

 

 

1,593,983

 

 

1,537,060

 

4

 

 

 

1,462,370

 

9

 

Office Buildings

 

 

2,521,381

 

 

2,511,058

 

 

 

 

2,280,053

 

11

 

Shopping Centers

 

 

1,500,768

 

 

1,655,465

 

(9

)

 

 

1,627,933

 

(8

)

Warehouses

 

 

814,756

 

 

801,639

 

2

 

 

 

692,267

 

18

 

Other Investment Property

 

 

1,327,760

 

 

1,268,130

 

5

 

 

 

1,052,163

 

26

 

Total Investment Properties

 

 

10,047,145

 

 

9,902,776

 

1

 

 

 

9,335,725

 

8

 

1-4 Family Construction

 

 

229,038

 

 

206,881

 

11

 

 

 

189,626

 

21

 

1-4 Family Investment Mortgage

 

 

391,636

 

 

438,588

 

(11

)

 

 

449,328

 

(13

)

Total 1-4 Family Properties

 

 

620,674

 

 

645,469

 

(4

)

 

 

638,954

 

(3

)

Commercial Development

 

 

102,757

 

 

102,790

 

 

 

 

142,380

 

(28

)

Residential Development

 

 

193,580

 

 

171,820

 

13

 

 

 

196,653

 

(2

)

Land Acquisition

 

 

181,162

 

 

192,256

 

(6

)

 

 

220,216

 

(18

)

Land and Development

 

 

477,499

 

 

466,866

 

2

 

 

 

559,249

 

(15

)

Total Commercial Real Estate

 

 

11,145,318

 

 

11,015,111

 

1

 

 

 

10,533,928

 

6

 

Consumer Mortgages

 

 

5,052,003

 

 

5,068,998

 

 

 

 

5,299,130

 

(5

)

Home Equity

 

 

1,416,341

 

 

1,361,419

 

4

 

 

 

1,460,866

 

(3

)

Credit Cards

 

 

188,247

 

 

204,172

 

(8

)

 

 

181,594

 

4

 

Other Consumer Loans

 

 

2,014,916

 

 

2,039,334

 

(1

)

 

 

1,549,972

 

30

 

Total Consumer

 

 

8,671,507

 

 

8,673,923

 

 

 

 

8,491,562

 

2

 

Total

 

$

40,169,150

 

$

39,311,958

 

2

%

 

$

38,805,101

 

4

%

 

 

 

 

 

 

 

 

 

 

 

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,

2022

 

December 31,

2021

 

%

Change

 

March 31,

2021

 

%

Change

Commercial, Financial, and Agricultural

 

$

64,888

 

$

61,787

 

5

%

 

$

76,460

 

(15

)%

Owner-Occupied

 

 

10,854

 

 

11,196

 

(3

)

 

 

17,192

 

(37

)

Total Commercial & Industrial

 

 

75,742

 

 

72,983

 

4

 

 

 

93,652

 

(19

)

Multi-Family

 

 

2,639

 

 

2,380

 

11

 

 

 

2,698

 

(2

)

Office Buildings

 

 

2,205

 

 

1,615

 

37

 

 

 

1,645

 

34

 

Shopping Centers

 

 

915

 

 

915

 

 

 

 

20,138

 

(95

)

Warehouses

 

 

482

 

 

223

 

116

 

 

 

221

 

118

 

Other Investment Property

 

 

1,047

 

 

717

 

46

 

 

 

887

 

18

 

Total Investment Properties

 

 

7,288

 

 

5,850

 

25

 

 

 

25,589

 

(72

)

1-4 Family Construction

 

 

55

 

 

55

 

 

 

 

1,291

 

(96

)

1-4 Family Investment Mortgage

 

 

2,187

 

 

4,508

 

(51

)

 

 

2,760

 

(21

)

Total 1-4 Family Properties

 

 

2,242

 

 

4,563

 

(51

)

 

 

4,051

 

(45

)

Commercial Development

 

 

625

 

 

449

 

39

 

 

 

567

 

10

 

Residential Development

 

 

407

 

 

446

 

(9

)

 

 

452

 

(10

)

Land Acquisition

 

 

1,021

 

 

1,023

 

 

 

 

782

 

31

 

Land and Development

 

 

2,053

 

 

1,918

 

7

 

 

 

1,801

 

14

 

Total Commercial Real Estate

 

 

11,583

 

 

12,331

 

(6

)

 

 

31,441

 

(63

)

Consumer Mortgages

 

 

29,997

 

 

29,078

 

3

 

 

 

11,201

 

168

 

Home Equity

 

 

8,854

 

 

9,773

 

(9

)

 

 

12,207

 

(27

)

Other Consumer Loans

 

 

5,955

 

 

6,877

 

(13

)

 

 

6,668

 

(11

)

Total Consumer

 

 

44,806

 

 

45,728

 

(2

)

 

 

30,076

 

49

 

Total

 

$

132,131

 

$

131,042

 

1

%

 

$

155,169

 

(15

)%

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY DATA

 

 

(Unaudited)

 

 

 

 

 

 

 

 

(Dollars in thousands)

2022

 

2021

 

First Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First

 

Fourth

 

Third

 

Second

 

First

 

'22 vs '21

 

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Loans (NPLs)

 

$

132,131

 

 

131,042

 

155,465

 

161,028

 

155,169

 

(15

)%

Impaired Loans Held for Sale

 

 

 

 

 

 

 

23,590

 

nm

Other Real Estate and Other Assets

 

 

26,759

 

 

27,137

 

16,883

 

16,806

 

16,849

 

59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Assets (NPAs)

 

 

158,890

 

 

158,179

 

172,348

 

177,834

 

195,608

 

(19

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses (ALL)

 

 

414,956

 

 

427,597

 

492,243

 

516,708

 

563,214

 

(26

)

Reserve for Unfunded Commitments

 

 

47,317

 

 

41,885

 

42,971

 

46,890

 

51,528

 

(8

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses (ACL)

 

 

462,273

 

 

469,482

 

535,214

 

563,598

 

614,742

 

(25

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Charge-Offs - Quarter

 

 

18,609

 

 

10,522

 

20,516

 

26,547

 

20,204

 

 

Net Charge-Offs - YTD

 

 

18,609

 

 

77,788

 

67,266

 

46,750

 

20,204

 

 

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

 

 

0.19

%

 

0.11

 

0.22

 

0.28

 

0.21

 

 

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

 

 

0.19

 

 

0.20

 

0.24

 

0.24

 

0.21

 

 

NPLs / Loans

 

 

0.33

 

 

0.33

 

0.41

 

0.42

 

0.40

 

 

NPAs / Loans, ORE and specific other assets

 

 

0.40

 

 

0.40

 

0.45

 

0.46

 

0.50

 

 

ACL/Loans

 

 

1.15

 

 

1.19

 

1.40

 

1.47

 

1.58

 

 

ALL/Loans

 

 

1.03

 

 

1.09

 

1.28

 

1.35

 

1.45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACL/NPLs

 

 

349.86

 

 

358.27

 

344.27

 

350.00

 

396.18

 

 

ALL/NPLs

 

 

314.05

 

 

326.31

 

316.63

 

320.88

 

362.97

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past Due Loans over 90 days and Still Accruing

 

$

3,067

 

 

6,770

 

5,960

 

4,415

 

3,804

 

(19

)

As a Percentage of Loans Outstanding

 

 

0.01

%

 

0.02

 

0.02

 

0.01

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Past Due Loans and Still Accruing

 

$

45,385

 

 

57,565

 

60,817

 

49,321

 

45,693

 

(1

)

As a Percentage of Loans Outstanding

 

 

0.11

%

 

0.15

 

0.16

 

0.13

 

0.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing Troubled Debt Restructurings (TDRs)

 

$

145,957

 

 

119,804

 

126,055

 

124,528

 

129,776

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Ratio is annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED CAPITAL INFORMATION (1)

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

March 31,

 

 

 

 

 

 

2022

2021

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Capital Ratio

 

 

9.47

%

 

9.50

 

9.74

 

 

 

 

 

 

Tier 1 Capital Ratio

 

 

10.60

 

 

10.66

 

10.99

 

 

 

 

 

 

Total Risk-Based Capital Ratio

 

 

12.53

 

 

12.61

 

13.34

 

 

 

 

 

 

Tier 1 Leverage Ratio

 

 

8.87

 

 

8.72

 

8.80

 

 

 

 

 

 

Common Equity as a Percentage of Total Assets (2)

 

 

7.60

 

 

8.30

 

8.38

 

 

 

 

 

 

Tangible Common Equity Ratio (3) (5)

 

 

6.80

 

 

7.52

 

7.55

 

 

 

 

 

 

Book Value Per Common Share (4)

 

$

29.50

 

 

32.82

 

31.06

 

 

 

 

 

 

Tangible Book Value Per Common Share (3)

 

 

26.16

 

 

29.46

 

27.74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

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