Market Overview

Synovus Announces Earnings for the Fourth Quarter 2019 and a 10% Increase in Common Stock Dividend

Share:

Synovus Financial Corp. (NYSE:SNV) today reported financial results for the quarter and year ended December 31, 2019. The Board of Directors also approved a 10% increase in the Company's quarterly common stock dividend from $0.30 to $0.33 per share, effective with the quarterly dividend payable in April 2020.

2019 Highlights

  • Net income available to common shareholders for 2019 was $540.9 million or $3.47 per diluted share as compared to $410.5 million or $3.47 per diluted share for 2018.
    • Adjusted earnings per diluted share for 2019 were $3.90 as compared to $3.64 for 2018, an increase of 7.3%.
  • Loans up $11.2 billion, or 43.2%, from 2018.  
  • Deposits up $11.7 billion, or 43.7%, from 2018.
  • Non-interest income was $355.9 million, an increase of $75.8 million from 2018. 
  • Non-interest expense was $1.1 billion in 2019, an increase of $269.5 million from 2018.
  • Net interest margin of 3.70%, a decline of 16 basis points from the previous year. Excluding the impact of purchase accounting adjustments (PAA), net interest margin was 3.47%, down 39 basis points from the prior year.
  • Credit quality was strong, with the non-performing loan (NPL) ratio declining 14 basis points from year-end 2018 to 0.27% and the non-performing asset (NPA) ratio declining 7 basis points from the prior year to 0.37%. The net charge-off ratio was 0.16% in 2019 compared to 0.20% in the prior year.
  • Completed integration of Florida Community Bank (FCB) and introduced new teams and products in legacy FCB markets.
  • Following the FCB acquisition, the Company returned $893 million to common shareholders during the year with repurchases of $725 million in common stock and $168 million in common dividends.
  • Total share count declined 10.9% from January 1, 2019. 

Fourth Quarter 2019 Highlights

  • Diluted EPS of $0.97; adjusted diluted EPS of $0.94, down 3.0% sequentially and up 3.1% year-over-year.
  • Period-end loan growth of $744.6 million, or 8.1% annualized, from prior quarter on total funded loan production of $3.55 billion.
  • Period-end deposit growth of $972.4 million, or 10.3% annualized, from third quarter 2019.
    • Core transaction deposits increased $373.0 million from the prior quarter.
    • Total deposit costs declined 13 basis points from the previous quarter.
  • Net interest margin of 3.65%, a decline of 4 basis points from the previous quarter. Excluding the impact of purchase accounting adjustments (PAA), net interest margin was 3.40%, down 2 basis points from the prior quarter.
  • Non-interest income was $98.0 million in the fourth quarter, an increase of $9.2 million from the third quarter and $30.0 million from the prior-year quarter.
  • Non-interest expense was $266.1 million in the fourth quarter, a decrease of $10.2 million from the third quarter and an increase of $56.2 million from the prior-year quarter.
  • Credit quality metrics remained solid, with the NPL ratio and the NPA ratio each declining by 5 basis points, to 0.27% and 0.37%, respectively. The net charge-off ratio was 0.10%.
  • Repurchased $36.5 million in common stock (1.1 million shares) during the quarter.

Fourth Quarter Summary

 

Reported

 

Adjusted

(dollars in thousands)

4Q19

 

3Q19

 

4Q18

 

4Q19

 

3Q19

 

4Q18

Net income available to common shareholders

$

143,393

 

 

$

127,435

 

 

$

101,919

 

 

$

140,069

 

 

$

149,732

 

 

$

107,001

 

Diluted earnings per share

0.97

 

 

0.83

 

 

0.87

 

 

0.94

 

 

0.97

 

 

0.91

 

Total loans

37,162,450

 

 

 

36,417,826

 

 

 

25,946,573

 

 

N/A

 

N/A

 

N/A

Total deposits

38,405,504

 

 

37,433,070

 

 

26,720,322

 

 

N/A

 

N/A

 

N/A

Total revenues

497,992

 

 

491,676

 

 

366,105

 

 

492,049

 

 

494,213

 

 

368,189

 

Return on avg assets

1.27

%

 

1.14

%

 

1.29

%

 

1.24

%

 

1.33

%

 

1.36

%

Return on avg common equity

13.08

 

 

11.36

 

 

14.25

 

 

12.78

 

 

13.35

 

 

14.96

 

Return on avg tangible common equity

15.18

 

 

13.19

 

 

14.63

 

 

14.84

 

 

15.46

 

 

15.36

 

Net interest margin

3.65

 

 

3.69

 

 

3.92

 

 

3.40

 

 

3.42

 

 

N/A

Efficiency ratio

53.44

 

 

56.20

 

 

57.34

 

 

53.20

 

 

51.71

 

 

55.98

 

Net charge-off ratio

0.10

 

 

0.22

 

 

0.20

 

 

N/A

 

N/A

 

N/A

NPA ratio

0.37

 

 

0.42

 

 

0.44

 

 

N/A

 

N/A

 

N/A

"The successful integration of Florida Community Bank (FCB), broad-based growth across multiple business lines throughout our five-state footprint, and continued strength in credit quality highlight our accomplishments in 2019," said Kessel D. Stelling, Synovus Chairman and CEO. "In addition, strong growth in fee-based revenue reflects our success in attracting and retaining top talent and expanding customer relationships. We enter 2020 with considerable momentum, focused on expanding revenue sources and improving efficiencies that strengthen our company and create long-term shareholder value."

Balance Sheet

Loans**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

4Q19

 

3Q19

 

Linked

Quarter

Change

 

Linked

Quarter %

Change*

 

4Q18

 

Year/Year

Change

 

Year/Year %

Change

Commercial & industrial

$

16,782.7

 

 

$

16,418.3

 

 

$

364.4

 

 

8.8

%

 

$

12,781.2

 

 

$

4,001.5

 

 

31.3

%

Commercial real estate

10,480.5

 

 

10,313.0

 

 

167.5

 

 

6.4

 

 

6,564.5

 

 

3,916.0

 

 

59.7

 

Consumer

9,924.7

 

 

9,709.2

 

 

215.5

 

 

8.8

 

 

6,625.0

 

 

3,299.6

 

 

49.8

 

Unearned income

(25.4

)

 

(22.7

)

 

(2.7

)

 

47.2

 

 

(24.1

)

 

(1.2

)

 

5.1

 

Total loans

$

37,162.5

 

 

$

36,417.8

 

 

$

744.6

 

 

8.1

%

 

$

25,946.6

 

 

$

11,215.9

 

 

43.2

%

* Annualized

** Amounts may not total due to rounding

  • Total funded loan production in the quarter was approximately $3.55 billion.
  • Commercial and industrial loans increased $364.4 million, or 8.8%, from the prior quarter, with broad-based growth across industries and geographies.
  • Consumer loans grew $215.5 million, or 8.8%, from the third quarter 2019, with increases in all four categories.
  • Commercial real estate loans increased by $167.5 million, or 6.4%, from the prior quarter, with growth in 7 of 10 asset classes.

Deposits**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

4Q19

 

3Q19

 

Linked

Quarter

Change

 

Linked

Quarter %

Change*

 

4Q18

 

Year/Year

Change

 

Year/Year

% Change

Non-interest-bearing DDA

$

8,661.2

 

 

$

8,970.2

 

 

$

(309.0

)

 

(13.7

)%

 

$

6,926.5

 

 

$

1,734.7

 

 

25.0

%

Interest-bearing DDA

4,769.5

 

 

4,714.8

 

 

54.7

 

 

4.6

 

 

3,690.7

 

 

1,078.8

 

 

29.2

 

Money market

9,827.4

 

 

9,212.1

 

 

615.2

 

 

26.5

 

 

7,681.8

 

 

2,145.5

 

 

27.9

 

Savings

909.5

 

 

897.3

 

 

12.2

 

 

5.4

 

 

812.5

 

 

97.0

 

 

11.9

 

Public funds

4,622.3

 

 

3,795.3

 

 

827.0

 

 

86.4

 

 

2,374.9

 

 

2,247.4

 

 

94.6

 

Time deposits

6,185.6

 

 

6,647.8

 

 

(462.2

)

 

(27.6

)

 

3,685.9

 

 

2,499.7

 

 

67.8

 

Brokered deposits

3,430.0

 

 

3,195.5

 

 

234.5

 

 

29.1

 

 

1,548.0

 

 

1,882.0

 

 

121.6

 

Total deposits

$

38,405.5

 

 

$

37,433.1

 

 

$

972.4

 

 

10.3

%

 

$

26,720.3

 

 

$

11,685.2

 

 

43.7

%

* Annualized

** Amounts may not total due to rounding

  • Deposit costs improved in the quarter, as intentional run-off of higher cost deposits were replaced with lower cost options.
  • Total deposit costs declined 13 basis points from the third quarter and 18 basis points from the July 2019 peak.
  • The loan to deposit ratio was 96.8% in the fourth quarter, compared to 97.3% in the third quarter 2019.

Income Statement Summary**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data)

4Q19

 

3Q19

 

Linked

Quarter

Change

 

Linked

Quarter %

Change

 

4Q18

 

Year/Year

Change

 

Year/Year

% Change

Net interest income

$

399,268

 

 

$

402,097

 

 

$

(2,829

)

 

(0.7

)%

 

$

297,933

 

 

$

101,335

 

 

34.0

%

Non-interest income

97,955

 

 

88,760

 

 

9,195

 

 

10.4

%

 

67,991

 

 

29,964

 

 

44.1

 

Non-interest expense

266,121

 

 

276,310

 

 

(10,189

)

 

(3.7

)

 

209,922

 

 

56,199

 

 

26.8

 

Provision expense

24,470

 

 

27,562

 

 

(3,092

)

 

(11.2

)

 

12,148

 

 

12,322

 

 

101.4

 

Income before taxes

$

206,632

 

 

$

186,985

 

 

$

19,647

 

 

10.5

%

 

$

143,854

 

 

$

62,778

 

 

43.6

%

Income tax expense

54,948

 

 

51,259

 

 

3,689

 

 

7.2

 

 

38,784

 

 

16,164

 

 

41.7

 

Preferred stock dividends

8,291

 

 

8,291

 

 

 

 

 

 

3,151

 

 

5,140

 

 

163.1

 

Net income available to common shareholders

$

143,393

 

 

$

127,435

 

 

$

15,958

 

 

12.5

%

 

$

101,919

 

 

$

41,474

 

 

40.7

%

Weighted average common shares outstanding, diluted

148,529

 

 

154,043

 

 

(5,514

)

 

(3.6

)

 

116,986

 

 

31,543

 

 

27.0

%

Diluted earnings per share

$

0.97

 

 

$

0.83

 

 

$

0.14

 

 

16.7

%

 

$

0.87

 

 

$

0.09

 

 

10.8

 

Adjusted diluted earnings per share

$

0.94

 

 

$

0.97

 

 

$

(0.03

)

 

(3.0

)%

 

$

0.91

 

 

$

0.03

 

 

3.1

 

** Amounts may not total due to rounding

Core Performance

  • Total revenues were $498.0 million in the fourth quarter, up $6.3 million from the previous quarter.
  • Net interest income decreased $2.8 million or 0.7% compared to the prior quarter.
  • Net interest margin was 3.65%, down 4 basis points from the previous quarter, and favorably impacted by $15.1 million of loan accretion and $11.0 million of deposit premium amortization.
    • Excluding the impact of PAA, net interest margin was 3.40%, down 2 basis points from the prior quarter.
    • The sequential decrease in net interest margin was driven by a decline of 18 basis points in total earning asset yields and a decrease of 14 basis points in the effective cost of funds.
  • Non-interest income increased $9.2 million, or 10.4% from the prior quarter, and increased $30.0 million, or 44.1%, compared to fourth quarter 2018.
    • Sequential growth was led by capital markets fee income, fiduciary activities, and impacts from fair value adjustments.
    • Assets under management of $17.0 billion increased 4.9% from the prior quarter and 21.2% from the fourth quarter 2018.
  • Non-interest expense decreased $10.2 million or 3.7% from the previous quarter. Adjusted non-interest expense increased $6.2 million or 2.4%, from the prior quarter.
    • The increase in adjusted expenses included a $3 million increase in FDIC expense associated with a reclassification of certain loan categories over the past four years, higher salaries expense, higher commissions associated with increases in non-interest income, and higher servicing expense related to a renegotiated lending partnership contract that was more than offset with an increase in net interest income.
  • Provision expense was $24.5 million, a $3.1 million decrease from the previous quarter, primarily resulting from lower charge-offs, which were 10 basis points.
  • The effective tax rate was 26.6% for the quarter.

Capital Ratios

 

 

 

 

 

 

 

 

4Q19

 

3Q19

 

4Q18

Common equity Tier 1 capital (CET1) ratio

8.95

%

(1)

8.96

%

 

9.95

%

Tier 1 capital ratio

10.24

 

(1)

10.27

 

 

10.61

 

Total risk-based capital ratio

12.25

 

(1)

12.30

 

 

12.37

 

Tier 1 leverage ratio

9.16

 

(1)

9.02

 

 

9.60

 

Tangible common equity ratio(2)

8.08

 

 

8.04

 

 

8.81

 

(1) Ratios are preliminary

(2) Non-GAAP measure; see applicable reconciliation

Capital

  • The Company repurchased $36.5 million in common stock (1.1 million shares) during the quarter. Year-to-date repurchases totaled $725 million, or 19.9 million shares. Share count has declined by 10.9% from January 1, 2019.

Fourth Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on January 24, 2020. 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 $48 billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services through 298 branches in Georgia, Alabama, South Carolina, Florida, and Tennessee. Synovus Bank, a wholly owned subsidiary of Synovus, was named one of American Banker's "Best Banks to Work For" in 2018 and 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, including our outlook and long-term goals for future growth; our expectations regarding net interest margin; expectations on our growth strategy, expense management, tax savings, strategic transactions, capital 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, 2018, under the captions "Cautionary Notice Regarding Forward-Looking Statements" and "Risk Factors" and in Synovus' quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as otherwise may be required by law.

Non-GAAP Financial Measures

The measures entitled adjusted non-interest expense; adjusted total revenues; adjusted tangible efficiency ratio; adjusted net income available to common shareholders; adjusted earnings per diluted 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; tangible common equity ratio; and common equity Tier 1 capital (CET1) ratio (fully phased-in) are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are total non-interest expense; total revenues; efficiency ratio-FTE; net income available to common shareholders; earnings per diluted common share; return on average assets; return on average common equity; the ratio of total shareholders' equity to total assets; and the CET1 capital ratio, respectively.

Management believes that these non-GAAP financial measures provide meaningful additional information about Synovus to assist management and investors in evaluating Synovus' operating results, financial strength, the performance of its business, and the strength of its capital position. However, these non-GAAP financial measures have inherent limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of operating results or capital position as reported under GAAP. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant items and other factors, and since they are not required to be uniformly applied, they may not be comparable to other similarly titled measures at other companies. Adjusted total revenues is a measure used by management to evaluate total revenues exclusive of net investment securities gains (losses) and gains on sales 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 earnings per diluted 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 and common equity Tier 1 capital (CET1) ratio (fully phased-in) are used by management and bank regulators 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)

4Q19

 

3Q19

 

4Q18

 

2019

 

2018

Adjusted non-interest expense

 

 

 

 

 

 

 

 

 

Total non-interest expense

$

266,121

 

 

$

276,310

 

 

$

209,922

 

 

$

1,098,968

 

 

$

829,455

 

Subtract: Earnout liability adjustments

 

 

(10,457

)

 

 

 

(10,457

)

 

(11,652

)

Add/subtract: Merger-related expense

913

 

 

(353

)

 

(3,381

)

 

(56,580

)

 

(10,065

)

Subtract/add: Restructuring charges, net

(1,259

)

 

66

 

 

(140

)

 

(1,230

)

 

51

 

Subtract: Valuation adjustment to Visa derivative

(1,111

)

 

(2,500

)

 

 

 

(3,611

)

 

(2,328

)

Add: Litigation settlement/contingency expense

 

 

 

 

 

 

 

 

4,026

 

Subtract: Loss on early extinguishment of debt, net

 

 

(4,592

)

 

 

 

(4,592

)

 

 

Adjusted non-interest expense

$

264,664

 

 

$

258,474

 

 

$

206,401

 

 

$

1,022,498

 

 

$

809,487

 

 

 

 

 

 

 

 

 

 

 

Adjusted total revenues and adjusted tangible efficiency ratio

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense

$

264,664

 

 

$

258,474

 

 

$

206,401

 

 

$

1,022,498

 

 

$

809,487

 

Subtract: Amortization of intangibles

(2,901

)

 

(2,901

)

 

(292

)

 

(11,603

)

 

(1,167

)

Adjusted tangible non-interest expense

$

261,763

 

 

$

255,573

 

 

$

206,109

 

 

$

1,010,895

 

 

$

808,320

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$

399,268

 

 

$

402,097

 

 

$

297,933

 

 

$

1,595,803

 

 

$

1,148,413

 

Add: Tax equivalent adjustment

769

 

 

819

 

 

181

 

 

3,025

 

 

553

 

Add: Total non-interest income

97,955

 

 

88,760

 

 

67,991

 

 

355,900

 

 

280,093

 

Total FTE revenues

497,992

 

 

491,676

 

 

366,105

 

 

1,954,728

 

 

1,429,059

 

Add: Investment securities losses, net

2,157

 

 

3,731

 

 

 

 

7,659

 

 

1,296

 

Subtract/add: Gain on sale and fair value (increase) decrease of private equity investments

(8,100

)

 

(1,194

)

 

2,084

 

 

(11,607

)

 

4,743

 

Adjusted total revenues

$

492,049

 

 

$

494,213

 

 

$

368,189

 

 

$

1,950,780

 

 

$

1,435,098

 

Efficiency ratio-FTE

53.44

%

 

56.20

%

 

57.34

%

 

56.22

%

 

58.04

%

Adjusted tangible efficiency ratio

53.20

 

 

51.71

 

 

55.98

 

 

51.82

 

 

56.33

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

 

 

(in thousands, except per share data)

4Q19

 

3Q19

 

4Q18

 

2019

 

2018

Adjusted Return on Average Assets

 

 

 

 

 

 

 

 

 

Net income

$

151,684

 

 

$

135,726

 

 

$

105,070

 

 

$

563,780

 

 

$

428,476

 

Add/subtract: Income tax expense (benefit), net related to State Tax Reform and SAB 118

 

 

4,402

 

 

 

 

4,402

 

 

(9,148

)

Add: Earnout liability adjustments

 

 

10,457

 

 

 

 

10,457

 

 

11,652

 

Subtract/add: Merger-related expense

(913

)

 

353

 

 

3,381

 

 

56,580

 

 

10,065

 

Add/subtract: Restructuring charges, net

1,259

 

 

(66

)

 

140

 

 

1,230

 

 

(51

)

Add: Valuation adjustment to Visa derivative

1,111

 

 

2,500

 

 

 

 

3,611

 

 

2,328

 

Subtract: Litigation settlement/contingency expense

 

 

 

 

 

 

 

 

(4,026

)

Add: Loss on early extinguishment of debt, net

 

 

4,592

 

 

 

 

4,592

 

 

 

Add: Investment securities losses, net

2,157

 

 

3,731

 

 

 

 

7,659

 

 

1,296

 

Subtract/add: Gain on sale and fair value (increase) decrease of private equity investments

(8,100

)

 

(1,194

)

 

2,084

 

 

(11,607

)

 

4,743

 

Add/subtract: Tax effect of adjustments

1,162

 

 

(2,478

)

 

(523

)

 

(9,343

)

 

(1,008

)

Adjusted net income

$

148,360

 

 

$

158,023

 

 

$

110,152

 

 

$

631,361

 

 

$

444,327

 

Net income annualized

$

601,790

 

 

$

538,478

 

 

$

416,854

 

 

$

563,780

 

 

$

428,476

 

Adjusted net income annualized

$

588,602

 

 

$

626,939

 

 

$

437,016

 

 

$

631,361

 

 

$

444,327

 

Total average assets

$

47,459,405

 

 

$

47,211,026

 

 

$

32,190,303

 

 

$

46,791,930

 

 

$

31,668,847

 

Return on average assets

1.27

%

 

1.14

%

 

1.29

%

 

1.20

%

 

1.35

%

Adjusted return on average assets

1.24

 

 

1.33

 

 

1.36

 

 

1.35

 

 

1.40

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

$

143,393

 

 

$

127,435

 

 

$

101,919

 

 

$

540,899

 

 

$

410,478

 

Add/subtract: Income tax expense (benefit), net related to State Tax Reform and SAB 118

 

 

4,402

 

 

 

 

4,402

 

 

(9,148

)

Add: Earnout liability adjustments

 

 

10,457

 

 

 

 

10,457

 

 

11,652

 

Add: Preferred stock redemption charge

 

 

 

 

 

 

 

 

4,020

 

Subtract/Add: Merger-related expense

(913

)

 

353

 

 

3,381

 

 

56,580

 

 

10,065

 

Add/subtract: Restructuring charges, net

1,259

 

 

(66

)

 

140

 

 

1,230

 

 

(51

)

Add: Valuation adjustment to Visa derivative

1,111

 

 

2,500

 

 

 

 

3,611

 

 

2,328

 

Subtract: Litigation settlement/contingency expense

 

 

 

 

 

 

 

 

(4,026

)

Add: Loss on early extinguishment of debt, net

 

 

4,592

 

 

 

 

4,592

 

 

 

Add: Investment securities losses, net

2,157

 

 

3,731

 

 

 

 

7,659

 

 

1,296

 

Subtract/add: Gain on sale and fair value (increase) decrease of private equity investments

(8,100

)

 

(1,194

)

 

2,084

 

 

(11,607

)

 

4,743

 

Add/subtract: Tax effect of adjustments

1,162

 

 

(2,478

)

 

(523

)

 

(9,343

)

 

(1,008

)

Adjusted net income available to common shareholders

$

140,069

 

 

$

149,732

 

 

$

107,001

 

 

$

608,480

 

 

$

430,349

 

Weighted average common shares outstanding, diluted

148,529

 

 

154,043

 

 

116,986

 

 

156,058

 

 

118,378

 

Net income per common share, diluted

$

0.97

 

 

$

0.83

 

 

$

0.87

 

 

$

3.47

 

 

$

3.47

 

Adjusted net income per common share, diluted

0.94

 

 

0.97

 

 

0.91

 

 

3.90

 

 

3.64

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

 

 

(dollars in thousands)

4Q19

 

3Q19

 

4Q18

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

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

$

143,393

 

 

$

127,435

 

 

$

101,919

 

 

$

540,899

 

 

$

410,478

 

Add/subtract: Income tax expense (benefit), net related to State Tax Reform and SAB 118

 

 

4,402

 

 

 

 

4,402

 

 

(9,148

)

Add: Earnout liability adjustments

 

 

10,457

 

 

 

 

10,457

 

 

11,652

 

Add: Preferred stock redemption charge

 

 

 

 

 

 

 

 

4,020

 

Subtract/Add: Merger-related expense

(913

)

 

353

 

 

3,381

 

 

56,580

 

 

10,065

 

Add/subtract: Restructuring charges, net

1,259

 

 

(66

)

 

140

 

 

1,230

 

 

(51

)

Add: Valuation adjustment to Visa derivative

1,111

 

 

2,500

 

 

 

 

3,611

 

 

2,328

 

Subtract: Litigation settlement/contingency expense

 

 

 

 

 

 

 

 

(4,026

)

Add: Loss on early extinguishment of debt, net

 

 

4,592

 

 

 

 

4,592

 

 

 

Add: Investment securities losses, net

2,157

 

 

3,731

 

 

 

 

7,659

 

 

1,296

 

Subtract/add: Gain on sale and fair value (increase) decrease of private equity investments

(8,100

)

 

(1,194

)

 

2,084

 

 

(11,607

)

 

4,743

 

Add/subtract: Tax effect of adjustments

1,162

 

 

(2,478

)

 

(523

)

 

(9,343

)

 

(1,008

)

Adjusted net income available to common shareholders

$

140,069

 

 

$

149,732

 

 

$

107,001

 

 

$

608,480

 

 

$

430,349

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income available to common shareholders annualized

$

555,709

 

 

$

594,045

 

 

$

424,515

 

 

$

608,480

 

 

$

430,349

 

Add: Amortization of intangibles

8,528

 

 

8,632

 

 

893

 

 

8,598

 

 

893

 

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

$

564,237

 

 

$

602,677

 

 

$

425,408

 

 

$

617,078

 

 

$

431,242

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders annualized

$

568,896

 

 

$

505,585

 

 

$

404,353

 

 

$

540,899

 

 

$

410,478

 

Add: Amortization of intangibles

8,528

 

 

8,632

 

 

893

 

 

8,598

 

 

893

 

Net income available to common shareholders excluding amortization of intangibles annualized

$

577,424

 

 

$

514,217

 

 

$

405,246

 

 

$

549,497

 

 

$

411,371

 

 

 

 

 

 

 

 

 

 

 

Total average shareholders' equity less preferred stock

$

4,348,250

 

 

$

4,450,301

 

 

$

2,837,740

 

 

$

4,384,458

 

 

$

2,821,311

 

Subtract: Goodwill

(488,223

)

 

(492,320

)

 

(57,315

)

 

(487,126

)

 

(57,315

)

Subtract: Other intangible assets, net

(57,149

)

 

(60,278

)

 

(9,972

)

 

(65,553

)

 

(10,424

)

Total average tangible shareholders' equity less preferred stock

$

3,802,878

 

 

$

3,897,703

 

 

$

2,770,453

 

 

$

3,831,779

 

 

$

2,753,572

 

Return on average common equity

13.08

%

 

11.36

%

 

14.25

%

 

12.34

%

 

14.55

%

Adjusted return on average common equity

12.78

 

 

13.35

 

 

14.96

 

 

13.88

 

 

15.25

 

Return on average tangible common equity

15.18

 

 

13.19

 

 

14.63

 

 

14.34

 

 

14.94

 

Adjusted return on average tangible common equity

14.84

 

 

15.46

 

 

15.36

 

 

16.10

 

 

15.66

 

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

December 31,

 

September 30,

 

December 31,

(dollars in thousands)

2019

 

2019

 

2018

Tangible Common Equity Ratio

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

48,203,282

 

 

$

47,661,182

 

 

$

32,669,192

 

Subtract: Goodwill

(497,267

)

 

(487,865

)

 

(57,315

)

Subtract: Other intangible assets, net

(55,671

)

 

(58,572

)

 

(9,875

)

Tangible assets

$

47,650,344

 

 

$

47,114,745

 

 

$

32,602,002

 

 

 

 

 

 

 

Total shareholders' equity

$

4,941,690

 

 

$

4,868,838

 

 

$

3,133,602

 

Subtract: Goodwill

(497,267

)

 

(487,865

)

 

(57,315

)

Subtract: Other intangible assets, net

(55,671

)

 

(58,572

)

 

(9,875

)

Subtract: Preferred Stock, no par value

(537,145

)

 

(536,550

)

 

(195,140

)

Tangible common equity

$

3,851,607

 

 

$

3,785,851

 

 

$

2,871,272

 

Total shareholders' equity to total assets ratio

10.25

%

 

10.22

%

 

9.59

%

Tangible common equity ratio

8.08

 

 

8.04

 

 

8.81

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

December 31,

(dollars in thousands)

2019

CET1 capital ratio (fully phased-in)

 

CET1 capital

$

3,743,448

 

Total risk-weighted assets

$

41,822,767

 

Total risk-weighted assets (fully phased-in)

$

41,891,173

 

CET1 capital ratio

8.95

%

CET1 capital ratio (fully phased-in)

8.94

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT DATA

 

 

(Unaudited)

 

Years Ended

(Dollars in thousands, except per share data)

 

December 31,

 

 

2019

 

2018

 

% Change

Interest income

 

$

2,050,638

 

 

$

1,344,305

 

 

52.5

%

Interest expense

 

454,835

 

 

195,892

 

 

132.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

1,595,803

 

 

1,148,413

 

 

39.0

 

Provision for loan losses

 

87,720

 

 

51,697

 

 

69.7

 

 

 

 

 

 

 

 

Net interest income after provision for loan losses

 

1,508,083

 

 

1,096,716

 

 

37.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

Service charges on deposit accounts

 

88,190

 

 

80,840

 

 

9.1

 

Fiduciary and asset management fees

 

58,388

 

 

54,685

 

 

6.8

 

Card fees

 

45,659

 

 

42,503

 

 

7.4

 

Brokerage revenue

 

41,608

 

 

35,366

 

 

17.6

 

Mortgage banking income

 

32,599

 

 

18,958

 

 

72.0

 

Capital markets income

 

30,529

 

 

5,803

 

 

426.1

 

Income from bank-owned life insurance

 

21,226

 

 

15,403

 

 

37.8

 

Investment securities losses, net

 

(7,659

)

 

(1,296

)

 

nm

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

investments

 

11,607

 

 

(4,743

)

 

nm

Other non-interest income

 

33,753

 

 

32,574

 

 

3.6

 

 

 

 

 

 

 

 

Total non-interest income

 

355,900

 

 

280,093

 

 

27.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

Salaries and other personnel expense

 

570,036

 

 

453,420

 

 

25.7

 

Net occupancy and equipment expense

 

161,906

 

 

130,482

 

 

24.1

 

Third-party processing and other services

 

75,696

 

 

58,625

 

 

29.1

 

Professional fees

 

35,300

 

 

26,737

 

 

32.0

 

FDIC insurance and other regulatory fees

 

31,696

 

 

24,494

 

 

29.4

 

Advertising expense

 

21,371

 

 

20,881

 

 

2.3

 

Amortization of intangibles

 

11,603

 

 

1,167

 

 

894.3

 

Merger-related expense

 

56,580

 

 

10,065

 

 

nm

Earnout liability adjustments

 

10,457

 

 

11,652

 

 

nm

Loss on early extinguishment of debt, net

 

4,592

 

 

 

 

nm

Valuation adjustment to Visa derivative

 

3,611

 

 

2,328

 

 

nm

Litigation settlement/contingency expense

 

 

 

(4,026

)

 

nm

Restructuring charges, net

 

1,230

 

 

(51

)

 

nm

Other operating expenses

 

114,890

 

 

93,681

 

 

22.6

 

 

 

 

 

 

 

 

Total non-interest expense

 

1,098,968

 

 

829,455

 

 

32.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

765,015

 

 

547,354

 

 

39.8

 

Income tax expense

 

201,235

 

 

118,878

 

 

69.3

 

 

 

 

 

 

 

 

Net income

 

563,780

 

 

428,476

 

 

31.6

 

 

 

 

 

 

 

 

Less: Preferred stock dividends and redemption charge

 

22,881

 

 

17,998

 

 

27.1

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

540,899

 

 

$

410,478

 

 

31.8

%

 

 

 

 

 

 

 

Net income per common share, basic

 

$

3.50

 

 

3.49

 

 

0.4

%

 

 

 

 

 

 

 

Net income per common share, diluted

 

3.47

 

 

3.47

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

1.20

 

 

1.00

 

 

20.0

 

 

 

 

 

 

 

 

Return on average assets*

 

1.20

%

 

1.35

%

 

(15

)bps

Return on average common equity*

 

12.34

 

 

14.55

 

 

(221

)

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

154,331

 

 

117,644

 

 

31.2

%

Weighted average common shares outstanding, diluted

 

156,058

 

 

118,378

 

 

31.8

 

 

 

 

 

 

 

 

nm - not meaningful

 

 

 

 

 

 

bps - basis points

 

 

 

 

 

 

* - ratios are annualized

 

 

 

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT DATA

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

2019

 

2018

 

Fourth

Quarter

 

Fourth

Quarter

 

Third

Quarter

 

Second

Quarter

 

First Quarter

 

Fourth

Quarter

 

'19 vs '18

 

 

 

% Change

Interest income

$

506,253

 

 

523,415

 

 

516,131

 

 

504,839

 

 

357,394

 

 

41.7

%

Interest expense

106,985

 

 

121,318

 

 

118,869

 

 

107,664

 

 

59,461

 

 

79.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

399,268

 

 

402,097

 

 

397,262

 

 

397,175

 

 

297,933

 

 

34.0

 

Provision for loan losses

24,470

 

 

27,562

 

 

12,119

 

 

23,569

 

 

12,148

 

 

101.4

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for loan losses

 

374,798

 

 

374,535

 

 

385,143

 

 

373,606

 

 

285,785

 

 

31.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

22,385

 

 

22,952

 

 

21,994

 

 

20,859

 

 

20,320

 

 

10.2

 

Fiduciary and asset management fees

15,645

 

 

14,686

 

 

14,478

 

 

13,578

 

 

13,805

 

 

13.3

 

Card fees

11,325

 

 

12,297

 

 

11,161

 

 

10,877

 

 

10,862

 

 

4.3

 

Brokerage revenue

11,106

 

 

11,071

 

 

10,052

 

 

9,379

 

 

9,241

 

 

20.2

 

Mortgage banking income

9,287

 

 

10,351

 

 

7,907

 

 

5,054

 

 

3,781

 

 

145.6

 

Capital markets income

8,972

 

 

7,396

 

 

8,916

 

 

5,245

 

 

1,977

 

 

353.8

 

Income from bank-owned life insurance

5,620

 

 

5,139

 

 

5,176

 

 

5,290

 

 

3,682

 

 

52.6

 

Investment securities (losses)/gains, net

(2,157

)

 

(3,731

)

 

(1,845

)

 

75

 

 

 

 

nm

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

8,100

 

 

1,194

 

 

1,455

 

 

858

 

 

(2,084

)

 

nm

Other non-interest income

7,672

 

 

7,405

 

 

10,513

 

 

8,163

 

 

6,407

 

 

19.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest income

97,955

 

 

88,760

 

 

89,807

 

 

79,378

 

 

67,991

 

 

44.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

Salaries and other personnel expense

145,084

 

 

142,516

 

 

143,009

 

 

139,427

 

 

113,496

 

 

27.8

 

Net occupancy and equipment expense

42,644

 

 

41,017

 

 

39,851

 

 

38,394

 

 

34,260

 

 

24.5

 

Third-party processing and other services

20,293

 

 

18,528

 

 

19,118

 

 

17,758

 

 

14,803

 

 

37.1

 

Professional Fees

9,921

 

 

9,719

 

 

9,312

 

 

6,348

 

 

8,650

 

 

14.7

 

FDIC insurance and other regulatory fees

9,825

 

 

7,242

 

 

7,867

 

 

6,761

 

 

4,728

 

 

107.8

 

Advertising expense

4,375

 

 

5,950

 

 

5,923

 

 

5,123

 

 

6,834

 

 

(36.0

)

Amortization of intangibles

2,901

 

 

2,901

 

 

2,410

 

 

3,392

 

 

292

 

 

893.5

 

Merger-related expense

(913

)

 

353

 

 

7,401

 

 

49,738

 

 

3,381

 

 

nm

Earnout liability adjustments

 

 

10,457

 

 

 

 

 

 

 

 

nm

Loss on early extinguishment of debt, net

 

 

4,592

 

 

 

 

 

 

 

 

nm

Valuation adjustment to Visa derivative

1,111

 

 

2,500

 

 

 

 

 

 

 

 

nm

Restructuring charges, net

1,259

 

 

(66

)

 

18

 

 

19

 

 

140

 

 

nm

Other operating expenses

29,621

 

 

30,601

 

 

29,217

 

 

25,450

 

 

23,338

 

 

26.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest expense

266,121

 

 

276,310

 

 

264,126

 

 

292,410

 

 

209,922

 

 

26.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

206,632

 

 

186,985

 

 

210,824

 

 

160,574

 

 

143,854

 

 

43.6

 

Income tax expense

54,948

 

 

51,259

 

 

54,640

 

 

40,388

 

 

38,784

 

 

41.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

151,684

 

 

135,726

 

 

156,184

 

 

120,186

 

 

105,070

 

 

44.4

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Preferred stock dividends

8,291

 

 

8,291

 

 

3,150

 

 

3,150

 

 

3,151

 

 

163.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

$

143,393

 

 

127,435

 

 

153,034

 

 

117,036

 

 

101,919

 

 

40.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, basic

$

0.98

 

 

0.84

 

 

0.97

 

 

0.73

 

 

0.88

 

 

11.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, diluted

0.97

 

 

0.83

 

 

0.96

 

 

0.72

 

 

0.87

 

 

10.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

0.30

 

 

0.30

 

 

0.30

 

 

0.30

 

 

0.25

 

 

20.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets *

1.27

%

 

1.14

 

 

1.34

 

 

1.06

 

 

1.29

 

 

(2

)bps

Return on average common equity *

13.08

 

 

11.36

 

 

13.90

 

 

10.98

 

 

14.25

 

 

(117

)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

146,948

 

 

152,238

 

 

157,389

 

 

160,927

 

 

116,303

 

 

26.3

%

Weighted average common shares outstanding, diluted

148,529

 

 

154,043

 

 

159,077

 

 

162,760

 

 

116,986

 

 

27.0

 

 

 

 

 

 

 

 

 

 

 

 

 

nm - not meaningful

 

 

 

 

 

 

 

 

 

 

 

bps - basis points

 

 

 

 

 

 

 

 

 

 

 

* - ratios are annualized

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET DATA

 

December 31, 2019

 

September 30, 2019

 

December 31, 2018

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Cash and due from banks

 

$

535,846

 

 

$

611,496

 

 

$

468,426

 

Interest-bearing funds with Federal Reserve Bank

 

553,390

 

 

480,913

 

 

641,476

 

Interest earning deposits with banks

 

20,635

 

 

20,086

 

 

19,841

 

Federal funds sold and securities purchased under resale agreements

 

77,047

 

 

69,975

 

 

13,821

 

Cash and cash equivalents

 

1,186,918

 

 

1,182,470

 

 

1,143,564

 

 

 

 

 

 

 

 

Investment securities available for sale, at fair value

 

6,778,670

 

 

6,892,162

 

 

3,991,632

 

Mortgage loans held for sale, at fair value

 

115,173

 

 

129,415

 

 

37,129

 

 

 

 

 

 

 

 

Loans

 

37,162,450

 

 

36,417,826

 

 

25,946,573

 

Allowance for loan losses

 

(281,402

)

 

(265,013

)

 

(250,555

)

Loans, net

 

36,881,048

 

 

36,152,813

 

 

25,696,018

 

 

 

 

 

 

 

 

Cash surrender value of bank-owned life insurance

 

775,665

 

 

771,458

 

 

554,134

 

Premises and equipment, net

 

493,940

 

 

487,053

 

 

434,307

 

Goodwill

 

497,267

 

 

487,865

 

 

57,315

 

Other intangible assets

 

55,671

 

 

58,572

 

 

9,875

 

Other assets

 

1,418,930

 

 

1,499,374

 

 

745,218

 

Total assets

 

$

48,203,282

 

 

$

47,661,182

 

 

$

32,669,192

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Non-interest-bearing deposits

 

$

9,439,485

 

 

$

9,586,148

 

 

$

7,650,967

 

Interest-bearing deposits

 

28,966,019

 

 

27,846,922

 

 

19,069,355

 

 

 

 

 

 

 

 

Total deposits

 

38,405,504

 

 

37,433,070

 

 

26,720,322

 

 

 

 

 

 

 

 

Federal funds purchased and securities sold under repurchase agreements

 

165,690

 

 

197,419

 

 

237,692

 

Other short-term borrowings

 

1,753,560

 

 

2,233,593

 

 

650,000

 

Long-term debt

 

2,153,897

 

 

2,153,600

 

 

1,657,157

 

Other liabilities

 

782,941

 

 

774,662

 

 

270,419

 

Total liabilities

 

43,261,592

 

 

42,792,344

 

 

29,535,590

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

Preferred Stock – no par value; authorized 100,000,000 shares; 22,000,000 issued and outstanding at December 31, 2019 and September 30, 2019, and 8,000,000 issued and outstanding at December 31, 2018

 

537,145

 

 

536,550

 

 

195,140

 

Common stock – $1.00 par value. Authorized 342,857,143 shares; 166,800,623 issued at December 31, 2019, 166,201,048 issued at September 30, 2019, and 143,300,449 issued at December 31, 2018; 147,157,596 outstanding at December 31, 2019, 147,594,000 outstanding at September 30, 2019, and 115,865,510 outstanding at December 31, 2018

 

166,801

 

 

166,201

 

 

143,300

 

Additional paid-in capital

 

3,819,336

 

 

3,801,158

 

 

3,060,561

 

Treasury stock, at cost – 19,643,027 shares at December 31, 2019, 18,607,048 shares at September 30, 2019, and 27,434,939 shares at December 31, 2018

 

(715,560

)

 

(680,081

)

 

(1,014,746

)

Accumulated other comprehensive income (loss), net

 

65,641

 

 

75,933

 

 

(94,420

)

Retained earnings

 

1,068,327

 

 

969,077

 

 

843,767

 

Total shareholders' equity

 

4,941,690

 

 

4,868,838

 

 

3,133,602

 

Total liabilities and shareholders' equity

 

$

48,203,282

 

 

$

47,661,182

 

 

$

32,669,192

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES AND YIELDS/RATES (1)

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

2019

 

2018

 

 

Fourth

Third

Second

First

 

Fourth

 

 

Quarter

Quarter

Quarter

Quarter

 

Quarter

Interest Earning Assets

 

 

 

 

 

 

 

Investment securities (2) (4)

 

$

6,696,768

 

6,831,036

 

6,955,386

 

6,536,199

 

 

4,073,685

 

Yield

 

3.12

%

3.14

 

3.03

 

3.06

 

 

2.45

 

Trading account assets (5)

 

$

7,986

 

5,519

 

4,853

 

2,049

 

 

7,493

 

Yield

 

2.69

%

4.01

 

1.83

 

1.30

 

 

1.90

 

Commercial loans (3) (4)

 

$

26,698,202

 

26,568,194

 

26,353,973

 

26,140,672

 

 

19,150,252

 

Yield

 

4.82

%

5.09

 

5.13

 

5.16

 

 

5.13

 

Consumer loans (3)

 

$

9,809,832

 

9,633,603

 

9,423,427

 

9,180,679

 

 

6,476,026

 

Yield

 

5.07

 

5.08

 

5.17

 

5.10

 

 

4.85

 

Allowance for loan losses

 

$

(269,052

)

(258,024

)

(259,284

)

(252,815

)

 

(251,098

)

Loans, net (3)

 

$

36,238,982

 

35,943,773

 

35,518,116

 

35,068,536

 

 

25,375,180

 

Yield

 

4.93

%

5.13

 

5.17

 

5.17

 

 

5.11

 

Mortgage loans held for sale

 

$

117,909

 

99,556

 

70,497

 

34,913

 

 

36,477

 

Yield

 

3.77

%

3.93

 

4.27

 

4.48

 

 

4.79

 

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

 

$

514,635

 

513,160

 

511,488

 

679,477

 

 

641,832

 

Yield

 

1.71

%

2.08

 

2.37

 

2.45

 

 

2.20

 

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

 

$

278,586

 

254,994

 

234,949

 

211,408

 

 

162,369

 

Yield

 

2.85

%

3.85

 

3.29

 

4.82

 

 

4.31

 

Total interest earning assets