Advertisement
Canada markets close in 1 hour 32 minutes
  • S&P/TSX

    22,187.62
    +80.54 (+0.36%)
     
  • S&P 500

    5,254.03
    +5.54 (+0.11%)
     
  • DOW

    39,792.09
    +32.01 (+0.08%)
     
  • CAD/USD

    0.7387
    +0.0014 (+0.19%)
     
  • CRUDE OIL

    83.02
    +1.67 (+2.05%)
     
  • Bitcoin CAD

    95,999.08
    +3,059.72 (+3.29%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,242.60
    +29.90 (+1.35%)
     
  • RUSSELL 2000

    2,124.74
    +10.39 (+0.49%)
     
  • 10-Yr Bond

    4.2020
    +0.0060 (+0.14%)
     
  • NASDAQ

    16,382.45
    -17.07 (-0.10%)
     
  • VOLATILITY

    12.98
    +0.20 (+1.56%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • CAD/EUR

    0.6840
    +0.0035 (+0.51%)
     

Synovus announces earnings for the first quarter 2023

Diluted earnings per share of $1.32 vs. $1.11 in 1Q22

Adjusted diluted earnings per share of $1.33 vs. $1.08 in 1Q22

COLUMBUS, Ga., April 19, 2023--(BUSINESS WIRE)--Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended March 31, 2023. "Our first quarter results reflect a disciplined approach to execution, with pre-provision net revenue of $292 million, a 30% increase year over year," said Synovus Chairman, CEO and President Kevin Blair. "Our stable deposit base and record deposit production are testaments to the quality of our clients and ability to expand existing and attract new relationships even in this environment. The recent J.D. Power recognition as the Southeast’s number one bank in retail client satisfaction and trust affirms the value of our commitment to tailored solutions, local market presence and personal relationships. Our team continues to exercise prudence and perseverance as we focus on profitable growth and meet the future needs of clients and communities we serve."

First Quarter 2023 Highlights

  • Net income available to common shareholders of $193.9 million, or $1.32 per diluted share, up $0.21 compared to the first quarter 2022.

  • Total revenue of $613.9 million increased $116.3 million, or 23%, compared to the first quarter 2022, driven by loan growth and higher interest rates, in addition to growth in core client fee income, excluding mortgage, of 19% year over year.

  • Pre-provision net revenue of $292.0 million increased $66.9 million, or 30%, compared to the first quarter 2022.

  • Period-end loans increased $328.6 million sequentially, primarily driven by new commercial production offset by a decline in third-party consumer loans from both runoff and a move to held-for-sale of $424 million.

  • Total deposits increased $1.08 billion sequentially, or 2%, a result of growth in both core as well as brokered deposits.

  • Fortified our liquidity position and currently maintain over $25 billion(1) of contingent liquidity across a diverse set of sources.

  • Credit quality metrics continue to remain at strong levels with a net charge-off ratio of 0.17% and a modest increase in the ACL ratio to 1.17%. The NPL and NPA ratios both moved to 0.41%.

  • Preliminary CET1 ratio of 9.76% increased 13 bps sequentially as capital generation continued to support client loan growth while also buffering capital levels given economic and regulatory uncertainty.

ADVERTISEMENT

(1) As of April 17, 2023

First Quarter Summary

Reported

Adjusted

(dollars in thousands)

1Q23

4Q22

1Q22

1Q23

4Q22

1Q22

Net income available to common shareholders

$

193,868

$

197,479

$

162,746

$

195,276

$

197,576

$

158,368

Diluted earnings per share

1.32

1.35

1.11

1.33

1.35

1.08

Total revenue

613,877

603,785

497,582

599,469

603,359

499,742

Total loans

44,044,939

43,716,353

40,169,150

N/A

N/A

N/A

Total deposits

49,953,936

48,871,559

48,656,244

N/A

N/A

N/A

Return on avg assets

1.36

%

1.38

%

1.22

%

1.37

%

1.39

%

1.19

%

Return on avg common equity

19.23

20.93

14.20

19.37

20.94

13.82

Return on avg tangible common equity

21.94

24.21

16.02

22.09

24.22

15.59

Net interest margin(1)

3.43

3.56

3.01

N/A

N/A

N/A

Efficiency ratio-TE(2)(3)

52.33

51.08

54.66

50.48

50.58

55.50

NCO ratio-QTD

0.17

0.12

0.19

N/A

N/A

N/A

NPA ratio

0.41

0.33

0.40

N/A

N/A

N/A

(1) NIM reflects Actual/Actual day count and includes other immaterial adjustments versus NIM previously reported.

(2) Taxable equivalent

(3) Adjusted tangible efficiency ratio

Balance Sheet

Loans*

(dollars in millions)

1Q23

4Q22

Linked
Quarter
Change

Linked
Quarter %
Change

1Q22

Year/Year
Change

Year/Year
% Change

Commercial & industrial

$

22,600.2

$

22,066.7

$

533.5

2

%

$

20,352.3

$

2,247.9

11

%

Commercial real estate

12,996.8

12,650.3

346.4

3

11,145.3

1,851.4

17

Consumer

8,448.0

8,999.4

(551.4

)

(6

)

8,671.5

(223.5

)

(3

)

Total loans

$

44,044.9

$

43,716.4

$

328.6

1

%

$

40,169.2

$

3,875.8

10

%

*Amounts may not total due to rounding

  • Total loans ended the quarter at $44.04 billion, up $328.6 million sequentially.

  • Commercial and industrial (C&I) loans increased $533.5 million sequentially, led by broad-based growth within our Wholesale Banking segment across multiple industries and business lines.

  • CRE loans increased $346.4 million sequentially as low levels of production were more than offset by slower payoffs and draws related to existing commitments.

  • Consumer loans decreased $551.4 million sequentially, largely a result of third-party decline from both runoff and a $424 million move to held-for-sale.

Deposits*

(dollars in millions)

1Q23

4Q22

Linked
Quarter
Change

Linked
Quarter %
Change

1Q22

Year/Year
Change

Year/Year
% Change

Non-interest-bearing DDA

$

13,827.6

$

14,574.5

$

(746.9

)

(5

)%

$

15,526.7

$

(1,699.1

)

(11

)%

Interest-bearing DDA

5,837.0

5,761.4

75.7

1

6,685.4

(848.3

)

(13

)

Money market

11,780.0

12,480.7

(700.8

)

(6

)

14,596.9

(2,816.9

)

(19

)

Savings

1,312.7

1,396.4

(83.8

)

(6

)

1,476.7

(164.0

)

(11

)

Public funds

6,888.2

6,635.6

252.6

4

6,048.7

839.5

14

Time deposits

4,060.3

2,724.1

1,336.2

49

2,284.2

1,776.1

78

Brokered deposits

6,248.3

5,299.0

949.2

18

2,037.7

4,210.6

207

Total deposits

$

49,953.9

$

48,871.6

$

1,082.4

2

%

$

48,656.2

$

1,297.7

3

%

*Amounts may not total due to rounding

  • Total deposits ended the quarter at $49.95 billion, up $1.08 billion sequentially and resulted from relationship-based production in addition to increased brokered deposits as a result of proactive management of our liquidity position, partially offset by the impact of non-interest bearing DDAs decline due to commercial seasonality, normal cash deployment, and to a lesser extent, continued rate pressures.

  • Total deposit costs increased 56 bps sequentially to 1.44% and were primarily impacted by the continued rising rate environment and aforementioned mix shift.

Income Statement Summary**

(in thousands, except per share data)

1Q23

4Q22

Linked
Quarter
Change

Linked
Quarter %
Change

1Q22

Year/Year
Change

Year/Year
% Change

Net interest income

$

480,751

$

501,346

$

(20,595

)

(4

)%

$

392,248

$

88,503

23

%

Non-interest revenue

133,126

102,439

30,687

30

105,334

27,792

26

Non-interest expense

321,852

308,996

12,856

4

272,450

49,402

18

Provision for (reversal of) credit losses

32,154

34,884

(2,730

)

(8

)

11,400

20,754

182

Income before taxes

$

259,871

$

259,905

$

(34

)

%

$

213,732

$

46,139

22

%

Income tax expense

57,712

54,135

3,577

7

42,695

15,017

35

Preferred stock dividends

8,291

8,291

8,291

Net income available to common shareholders

$

193,868

$

197,479

$

(3,611

)

(2

)%

$

162,746

$

31,122

19

%

Weighted average common shares outstanding, diluted

146,727

146,528

199

%

146,665

62

%

Diluted earnings per share

$

1.32

$

1.35

$

(0.03

)

(2

)

$

1.11

$

0.21

19

Adjusted diluted earnings per share

1.33

1.35

(0.02

)

(1

)

1.08

0.25

23

Effective tax rate

22.21

%

20.83

%

19.98

%

** Amounts may not total due to rounding

Core Performance

  • Net interest income of $480.8 million was down $20.6 million sequentially, or 4%, and increased $88.5 million, or 23%, compared to the first quarter 2022.

    • The quarter-over-quarter decline was largely driven by lower day count, increases in deposit costs, and negative remixing from non-interest DDA deposits partially offset by higher asset yields and earning asset growth.

      • Net interest margin was 3.43%, down 13 bps sequentially, impacted by the same factors mentioned above as well as higher cash balances due to precautionary March liquidity actions.

    • The year-over-year increase resulted primarily from loan growth and interest rate increases somewhat offset by higher deposit costs and negative remixing from non-interest DDA deposits.

  • Non-interest revenue increased $30.7 million, or 30%, sequentially and increased $27.8 million, or 26%, compared to the first quarter 2022 and was impacted by a $13.1 million one-time benefit from the recovery of a non-performing asset related to the regulatory approval of our Qualpay investment. Adjusted non-interest revenue increased $16.7 million, or 17%, sequentially and increased $11.0 million, or 10%, compared to the first quarter 2022.

    • Increases primarily related to strong capital markets income from syndication fees and interest rate management products and higher wealth revenue from diverse sources including fees from short-term liquidity management products.

  • Non-interest expense increased $12.9 million, or 4%, sequentially and increased $49.4 million, or 18%, compared to the first quarter 2022 and was impacted by a $16.8 million loss associated with the move of third-party consumer loans to held-for-sale. Adjusted non-interest expense decreased $2.8 million, or 1%, sequentially and increased $25.0 million, or 9%, compared to the first quarter 2022.

    • The quarter-over-quarter increase was largely due to normal, seasonal personnel expense and planned increases in FDIC insurance expense and healthcare costs offset by lower performance-related expense and well-managed operating costs.

    • The year-over-year increase primarily resulted from new business initiatives, core operating costs including investments in and expansion of our workforce, and costs associated with the industrywide increase in FDIC insurance and healthcare costs.

  • Overall credit performance and the credit quality of our recent originations remain strong. The non-performing loan and asset ratios both moved to 0.41%; the net charge-off ratio for the quarter was 0.17%, and total past dues were 0.12% of total loans outstanding.

  • Provision for credit losses of $32.2 million decreased $2.7 million sequentially and increased $20.8 million compared to the first quarter 2022. Drivers of the year-over-year increase included loan growth and a modest increase in the allowance for credit losses coverage ratio (to loans) of 2 bps, a result of deterioration in forecasted economic scenarios mostly offset by continued strong loan portfolio performance.

Capital Ratios

1Q23

4Q22

1Q22

Common equity Tier 1 capital (CET1) ratio

9.76

%

*

9.63

%

9.49

%

Tier 1 capital ratio

10.79

*

10.68

10.63

Total risk-based capital ratio

12.69

*

12.54

12.56

Tier 1 leverage ratio

9.14

*

9.07

8.87

Tangible common equity ratio

6.12

5.84

6.80

* Ratios are preliminary.

Capital

  • Preliminary CET1 ratio improved 13 bps during the quarter to 9.76%, and the preliminary total risk-based capital ratio of 12.69% increased 15 bps from the previous quarter as core earnings continued to support robust capital generation.

First Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. ET on April 20, 2023. 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 $62 billion in assets. Synovus provides commercial and consumer banking and a full suite of specialized products and services, including private banking, treasury management, wealth management, mortgage services, premium finance, asset-based lending, structured lending, capital markets and international banking. Synovus has 245 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, 2022, 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, non-interest expense; adjusted revenue; adjusted tangible efficiency ratio; adjusted net income available to common shareholders; adjusted diluted earnings per share; adjusted return on average assets; adjusted return on average common equity; return on average tangible common equity; adjusted return on average tangible common equity; and tangible common equity ratio are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are total non-interest revenue; total non-interest expense; total TE revenue; efficiency ratio-TE; net income available to common shareholders; diluted earnings per share; return on average assets; return on average common equity; and the ratio of total shareholders' equity to total assets, respectively.

Management believes that these non-GAAP financial measures provide meaningful additional information about Synovus to assist management and investors in evaluating Synovus’ operating results, financial strength, the performance of its business, and the strength of its capital position. However, these non-GAAP financial measures have inherent limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of operating results or capital position as reported under GAAP. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant items and other factors, and since they are not required to be uniformly applied, they may not be comparable to other similarly titled measures at other companies. Adjusted non-interest revenue and adjusted revenue are measures used by management to evaluate non-interest revenue and TE revenue exclusive of net investment securities gains (losses), fair value adjustment on non-qualified deferred compensation, and other items not indicative of ongoing operations that could impact period-to-period comparisons. Adjusted non-interest expense and the adjusted tangible efficiency ratio are measures utilized by management to measure the success of expense management initiatives focused on reducing recurring controllable operating costs. Adjusted net income available to common shareholders, adjusted diluted earnings per share, adjusted return on average assets, and adjusted return on average common equity are measures used by management to evaluate operating results exclusive of items that are not indicative of ongoing operations and impact period-to-period comparisons. Return on average tangible common equity and adjusted return on average tangible common equity are measures used by management to compare Synovus’ performance with other financial institutions because it calculates the return available to common shareholders without the impact of intangible assets and their related amortization, thereby allowing management to evaluate the performance of the business consistently. The tangible common equity ratio is used by management to assess the strength of our capital position. The computations of these measures are set forth in the tables below.

Reconciliation of Non-GAAP Financial Measures

(dollars in thousands)

1Q23

4Q22

1Q22

Adjusted non-interest revenue

Total non-interest revenue

$

133,126

$

102,439

$

105,334

Investment securities (gains) losses, net

(1,030

)

Recovery of NPA

(13,126

)

Fair value adjustment on non-qualified deferred compensation

(1,371

)

(1,557

)

1,295

Adjusted non-interest revenue

$

117,599

$

100,882

$

106,629

Adjusted non-interest expense

Total non-interest expense

$

321,852

$

308,996

$

272,450

Loss on other loans held for sale

(16,750

)

Loss on early extinguishment of debt

(677

)

Restructuring (charges) reversals

733

2,372

6,424

Valuation adjustment to Visa derivative

(2,500

)

Fair value adjustment on non-qualified deferred compensation

(1,371

)

(1,557

)

1,295

Adjusted non-interest expense

$

304,464

$

307,311

$

279,492

Reconciliation of Non-GAAP Financial Measures, continued

(dollars in thousands)

1Q23

4Q22

1Q22

Adjusted revenue and tangible efficiency ratio

Adjusted non-interest expense

$

304,464

$

307,311

$

279,492

Amortization of intangibles

(1,857

)

(2,118

)

(2,118

)

Adjusted tangible non-interest expense

$

302,607

$

305,193

$

277,374

Net interest income

$

480,751

$

501,346

$

392,248

Tax equivalent adjustment

1,119

1,131

865

Total non-interest revenue

133,126

102,439

105,334

Total TE revenue

$

614,996

$

604,916

$

498,447

Recovery of NPA

(13,126

)

Investment securities losses (gains), net

(1,030

)

Fair value adjustment on non-qualified deferred compensation

(1,371

)

(1,557

)

1,295

Adjusted revenue

$

599,469

$

603,359

$

499,742

Efficiency ratio-TE

52.33

%

51.08

%

54.66

%

Adjusted tangible efficiency ratio

50.48

50.58

55.50

Adjusted return on average assets

Net income

$

202,159

$

205,770

$

171,037

Recovery of NPA

(13,126

)

Loss on other loans held for sale

16,750

Loss on early extinguishment of debt

677

Restructuring charges (reversals)

(733

)

(2,372

)

(6,424

)

Valuation adjustment to Visa derivative

2,500

Investment securities losses (gains), net

(1,030

)

Tax effect of adjustments(1)

(453

)

(31

)

1,369

Adjusted net income

$

203,567

$

205,867

$

166,659

Net income annualized

$

819,867

$

816,370

$

693,650

Adjusted net income annualized

$

825,577

$

816,755

$

675,895

Total average assets

$

60,133,561

$

58,963,417

$

56,855,898

Return on average assets

1.36

%

1.38

%

1.22

%

Adjusted return on average assets

1.37

1.39

1.19

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

Net income available to common shareholders

$

193,868

$

197,479

$

162,746

Recovery of NPA

(13,126

)

Loss on other loans held for sale

16,750

Loss on early extinguishment of debt

677

Restructuring charges (reversals)

(733

)

(2,372

)

(6,424

)

Valuation adjustment to Visa derivative

2,500

Investment securities losses (gains), net

(1,030

)

Tax effect of adjustments(1)

(453

)

(31

)

1,369

Adjusted net income available to common shareholders

$

195,276

$

197,576

$

158,368

Weighted average common shares outstanding, diluted

146,727

146,528

146,665

Diluted earnings per share

$

1.32

$

1.35

$

1.11

Adjusted diluted earnings per share

1.33

1.35

1.08

Reconciliation of Non-GAAP Financial Measures, continued

(dollars in thousands)

1Q23

4Q22

1Q22

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

$

193,868

$

197,479

$

162,746

Recovery of NPA

(13,126

)

Loss on other loans held for sale

16,750

Loss on early extinguishment of debt

677

Restructuring charges (reversals)

(733

)

(2,372

)

(6,424

)

Valuation adjustment to Visa derivative

2,500

Investment securities losses (gains), net

(1,030

)

Tax effect of adjustments(1)

(453

)

(31

)

1,369

Adjusted net income available to common shareholders

$

195,276

$

197,576

$

158,368

Adjusted net income available to common shareholders annualized

$

791,953

$

783,861

$

642,270

Amortization of intangibles, tax effected, annualized

5,699

6,358

6,543

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

$

797,652

$

790,219

$

648,813

Net income available to common shareholders annualized

$

786,242

$

783,476

$

660,025

Amortization of intangibles, tax effected, annualized

5,699

6,358

6,543

Net income available to common shareholders excluding amortization of intangibles annualized

$

791,941

$

789,834

$

666,568

Total average shareholders' equity less preferred stock

$

4,088,777

$

3,742,927

$

4,647,426

Average goodwill

(452,390

)

(452,390

)

(452,390

)

Average other intangible assets, net

(26,245

)

(28,174

)

(34,576

)

Total average tangible shareholders' equity less preferred stock

$

3,610,142

$

3,262,363

$

4,160,460

Return on average common equity

19.23

%

20.93

%

14.20

%

Adjusted return on average common equity

19.37

20.94

13.82

Return on average tangible common equity

21.94

24.21

16.02

Adjusted return on average tangible common equity

22.09

24.22

15.59

(dollars in thousands)

March 31,
2023

December 31,
2022

March 31,
2022

Tangible common equity ratio

Total assets

$

61,840,025

$

59,731,378

$

56,419,549

Goodwill

(452,390

)

(452,390

)

(452,390

)

Other intangible assets, net

(25,267

)

(27,124

)

(33,478

)

Tangible assets

$

61,362,368

$

59,251,864

$

55,933,681

Total shareholders’ equity

$

4,770,130

$

4,475,801

$

4,824,635

Goodwill

(452,390

)

(452,390

)

(452,390

)

Other intangible assets, net

(25,267

)

(27,124

)

(33,478

)

Preferred Stock, no par value

(537,145

)

(537,145

)

(537,145

)

Tangible common equity

$

3,755,328

$

3,459,142

$

3,801,622

Total shareholders’ equity to total assets ratio

7.71

%

7.49

%

8.55

%

Tangible common equity ratio

6.12

5.84

6.80

(1) An assumed marginal tax rate of 24.3% for 1Q23 and 4Q22 and 23.8% for 1Q22 was applied.

Synovus

INCOME STATEMENT DATA

(Unaudited)

(Dollars in thousands, except per share data)

2023

2022

First Quarter

First
Quarter

Fourth
Quarter

Third
Quarter

Second
Quarter

First
Quarter

'23 vs '22

% Change

Interest income

$

716,879

654,654

551,299

453,772

416,062

72

%

Interest expense

236,128

153,308

73,380

28,384

23,814

892

Net interest income

480,751

501,346

477,919

425,388

392,248

23

Provision for (reversal of) credit losses

32,154

34,884

25,581

12,688

11,400

182

Net interest income after provision for credit losses

448,597

466,462

452,338

412,700

380,848

18

Non-interest revenue:

Service charges on deposit accounts

22,974

23,639

23,398

23,491

22,539

2

Fiduciary and asset management fees

19,696

18,836

19,201

20,100

20,277

(3

)

Card fees

15,824

15,887

15,101

16,089

14,756

7

Brokerage revenue

22,558

19,996

17,140

15,243

14,655

54

Mortgage banking income

3,858

2,554

5,065

3,904

5,953

(35

)

Capital markets income

13,725

6,998

6,839

7,393

5,472

151

Income from bank-owned life insurance

7,262

7,206

6,792

9,165

6,556

11

Investment securities gains (losses), net

1,030

nm

Recovery of NPA

13,126

nm

Other non-interest revenue

13,073

7,323

10,762

1,881

15,126

(14

)

Total non-interest revenue

133,126

102,439

104,298

97,266

105,334

26

Non-interest expense:

Salaries and other personnel expense

188,924

182,629

173,334

161,063

164,684

15

Net occupancy, equipment, and software expense

42,860

45,192

43,462

43,199

42,877

Third-party processing and other services

21,833

23,130

22,539

21,952

20,996

4

Professional fees

8,963

11,096

6,755

10,865

8,474

6

FDIC insurance and other regulatory fees

10,268

8,232

7,707

6,894

6,250

64

Restructuring charges (reversals)

(733

)

(2,372

)

956

(1,850

)

(6,424

)

nm

Loss on other loans held for sale

16,750

nm

Other operating expenses

32,987

41,089

39,257

39,928

35,593

(7

)

Total non-interest expense

321,852

308,996

294,010

282,051

272,450

18

Income before income taxes

259,871

259,905

262,626

227,915

213,732

22

Income tax expense

57,712

54,135

59,582

49,863

42,695

35

Net income

202,159

205,770

203,044

178,052

171,037

18

Less: Preferred stock dividends

8,291

8,291

8,291

8,291

8,291

Net income available to common shareholders

$

193,868

197,479

194,753

169,761

162,746

19

%

Net income per common share, basic

$

1.33

1.36

1.34

1.17

1.12

19

%

Net income per common share, diluted

1.32

1.35

1.33

1.16

1.11

19

Cash dividends declared per common share

0.38

0.34

0.34

0.34

0.34

12

Return on average assets *

1.36

%

1.38

1.39

1.26

1.22

14

bps

Return on average common equity *

19.23

20.93

18.66

16.48

14.20

503

Weighted average common shares outstanding, basic

145,799

145,467

145,386

145,328

145,273

%

Weighted average common shares outstanding, diluted

146,727

146,528

146,418

146,315

146,665

nm - not meaningful

bps - basis points

* - ratios are annualized

Synovus

BALANCE SHEET DATA

March 31,
2023

December 31,
2022

March 31,
2022

(Unaudited)

(In thousands, except share data)

ASSETS

Cash and due from banks

$

638,150

$

624,097

$

557,178

Interest-bearing funds with Federal Reserve Bank

2,656,953

1,280,684

941,272

Interest earning deposits with banks

34,779

34,632

27,411

Federal funds sold and securities purchased under resale agreements

35,518

38,367

27,642

Cash, cash equivalents, and restricted cash

3,365,400

1,977,780

1,553,503

Investment securities available for sale, at fair value

9,732,618

9,678,103

10,463,101

Loans held for sale (includes $44,400, $51,136 and $111,992 measured at fair value, respectively)

669,447

391,502

723,921

Loans, net of deferred fees and costs

44,044,939

43,716,353

40,169,150

Allowance for loan losses

(457,010

)

(443,424

)

(414,956

)

Loans, net

43,587,929

43,272,929

39,754,194

Cash surrender value of bank-owned life insurance

1,094,072

1,089,280

1,075,175

Premises, equipment, and software, net

367,089

370,632

386,631

Goodwill

452,390

452,390

452,390

Other intangible assets, net

25,267

27,124

33,478

Other assets

2,545,813

2,471,638

1,977,156

Total assets

$

61,840,025

$

59,731,378

$

56,419,549

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Deposits:

Non-interest-bearing deposits

$

14,642,677

$

15,639,899

$

16,611,344

Interest-bearing deposits

35,311,259

33,231,660

32,044,900

Total deposits

49,953,936

48,871,559

48,656,244

Federal funds purchased and securities sold under repurchase agreements

195,695

146,588

501,124

Other short-term borrowings

253,152

603,384

400,389

Long-term debt

5,146,252

4,109,597

805,259

Other liabilities

1,520,860

1,524,449

1,231,898

Total liabilities

57,069,895

55,255,577

51,594,914

Shareholders' equity:

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

537,145

537,145

537,145

Common stock - $1.00 par value. Authorized 342,857,143 shares; issued 170,713,864, 170,141,492 and 169,912,021 respectively; outstanding 146,059,006, 145,486,634 and 145,334,763 respectively

170,714

170,141

169,912

Additional paid-in capital

3,925,449

3,920,346

3,899,269

Treasury stock, at cost; 24,654,858, 24,654,858, and 24,577,258 shares, respectively

(944,484

)

(944,484

)

(941,168

)

Accumulated other comprehensive income (loss), net

(1,289,327

)

(1,442,117

)

(662,065

)

Retained earnings

2,370,633

2,234,770

1,821,542

Total shareholders’ equity

4,770,130

4,475,801

4,824,635

Total liabilities and shareholders' equity

$

61,840,025

$

59,731,378

$

56,419,549

Synovus

AVERAGE BALANCES, INTEREST, AND YIELDS/RATES

(Unaudited)

First Quarter 2023

Fourth Quarter 2022

First Quarter 2022

(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)

$

35,030,809

$

526,529

6.10

%

$

34,103,384

$

474,439

5.52

%

$

30,756,752

$

280,588

3.70

%

Consumer loans (1) (2)

8,762,631

104,147

4.78

9,041,520

101,905

4.50

8,594,009

81,368

3.81

Less: Allowance for loan losses

(445,192

)

(427,525

)

(423,953

)

Loans, net

43,348,248

630,676

5.89

42,717,379

576,344

5.36

38,926,808

361,956

3.76

Investment securities available for sale

11,293,958

61,054

2.16

11,296,449

58,840

2.08

11,259,800

47,250

1.68

Trading account assets

11,338

124

4.39

15,552

68

1.75

9,078

39

1.73

Other earning assets(4)

1,513,800

17,212

4.55

1,148,099

10,490

3.58

1,919,531

815

0.17

FHLB and Federal Reserve Bank stock

306,935

3,355

4.37

270,822

2,805

4.14

160,065

685

1.71

Mortgage loans held for sale

36,497

566

6.20

46,240

688

5.95

103,887

882

3.40

Other loans held for sale

443,690

5,011

4.52

514,811

6,550

4.98

597,062

5,300

3.55

Total interest earning assets

56,954,466

$

717,998

5.11

%

56,009,352

$

655,785

4.65

%

52,976,231

$

416,927

3.19

%

Cash and due from banks

643,502

651,189

548,684

Premises and equipment

370,275

375,352

398,774

Other real estate

11,759

Cash surrender value of bank-owned life insurance

1,091,080

1,085,394

1,070,886

Other assets(5)

1,074,238

842,130

1,849,564

Total assets

$

60,133,561

$

58,963,417

$

56,855,898

Liabilities and Shareholders' Equity

Interest-bearing liabilities:

Interest-bearing demand deposits

$

9,088,533

$

23,218

1.04

%

$

8,627,386

$

14,160

0.65

%

$

9,549,527

$

2,372

0.10

%

Money market accounts

14,397,683

72,618

2.05

14,771,308

46,671

1.25

16,045,627

5,349

0.14

Savings deposits

1,370,173

211

0.06

1,450,153

176

0.05

1,460,648

67

0.02

Time deposits

3,601,288

21,496

2.42

2,567,979

7,648

1.18

3,009,795

2,138

0.29

Brokered deposits

5,553,970

56,392

4.12

4,986,542

39,500

3.14

2,788,124

3,733

0.54

Federal funds purchased and securities sold under repurchase agreements

133,360

670

2.01

141,707

437

1.21

194,352

11

0.02

Other short-term borrowings

1,677,519

18,994

4.53

660,295

6,383

3.78

4,773

Long-term debt

3,148,062

42,529

5.41

3,446,306

38,333

4.39

982,423

10,144

4.13

Total interest-bearing liabilities

38,970,588

$

236,128

2.46

%

36,651,676

$

153,308

1.66

%

34,035,269

$

23,814

0.28

%

Non-interest-bearing demand deposits

15,014,224

16,569,275

16,491,643

Other liabilities

1,522,827

1,462,394

1,144,415

Shareholders' equity

4,625,922

4,280,072

5,184,571

Total liabilities and shareholders' equity

$

60,133,561

$

58,963,417

$

56,855,898

Net interest income and net interest margin, taxable equivalent (6) (7)

$

481,870

3.43

%

$

502,477

3.56

%

$

393,113

3.01

%

Less: taxable-equivalent adjustment

1,119

1,131

865

Net interest income

$

480,751

$

501,346

$

392,248

(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 2023 — $11.5 million, Fourth Quarter 2022 — $11.7 million, and First Quarter 2022 — $20.7 million.

(3)

Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans to a taxable-equivalent basis.

(4)

Includes interest-bearing funds with Federal Reserve Bank, interest earning deposits with banks, and federal funds sold and securities purchased under resale agreements.

(5)

Includes average net unrealized gains/(losses) on investment securities available for sale of $(1.52) billion, $(1.69) billion, and $(247.4) million for the First Quarter 2023, Fourth Quarter 2022, and First Quarter 2022, respectively.

(6)

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

(7)

Net interest margin reflects Actual/Actual day count and includes other immaterial adjustments versus NIM previously reported.

Synovus

LOANS OUTSTANDING BY TYPE

(Unaudited)

Total Loans

Total Loans

Linked Quarter

Total Loans

Year/Year

(Dollars in thousands)

Loan Type

March 31,
2023

December 31,
2022

%
Change

March 31,
2022

%
Change

Commercial, Financial, and Agricultural

$

14,201,398

$

13,874,416

2

%

$

12,659,611

12

%

Owner-Occupied

8,398,778

8,192,240

3

7,692,714

9

Total Commercial & Industrial

22,600,176

22,066,656

2

20,352,325

11

Multi-Family

3,374,129

3,134,571

8

2,288,497

47

Hotels

1,737,163

1,708,194

2

1,593,983

9

Office Buildings

3,071,236

3,011,911

2

2,521,381

22

Shopping Centers

1,332,078

1,403,928

(5

)

1,500,768

(11

)

Warehouses

1,020,921

1,035,152

(1

)

814,756

25

Other Investment Property

1,441,303

1,350,291

7

1,327,760

9

Total Investment Properties

11,976,830

11,644,047

3

10,047,145

19

1-4 Family Construction

201,896

229,263

(12

)

229,038

(12

)

1-4 Family Investment Mortgage

394,754

387,670

2

391,636

1

Total 1-4 Family Properties

596,650

616,933

(3

)

620,674

(4

)

Commercial Development

63,004

79,889

(21

)

102,757

(39

)

Residential Development

106,872

108,661

(2

)

193,580

(45

)

Land Acquisition

253,399

200,783

26

181,162

40

Land and Development

423,275

389,333

9

477,499

(11

)

Total Commercial Real Estate

12,996,755

12,650,313

3

11,145,318

17

Consumer Mortgages

5,246,640

5,214,443

1

5,052,003

4

Home Equity

1,757,250

1,757,038

1,416,341

24

Credit Cards

184,595

203,612

(9

)

188,247

(2

)

Other Consumer Loans

1,259,523

1,824,291

(31

)

2,014,916

(37

)

Total Consumer

8,448,008

8,999,384

(6

)

8,671,507

(3

)

Total

$

44,044,939

$

43,716,353

1

%

$

40,169,150

10

%

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,
2023

December 31,
2022

%
Change

March 31,
2022

%
Change

Commercial, Financial, and Agricultural

$

94,196

$

59,307

59

%

$

64,888

45

%

Owner-Occupied

25,591

10,104

153

10,854

136

Total Commercial & Industrial

119,787

69,411

73

75,742

58

Multi-Family

1,806

1,857

(3

)

2,639

(32

)

Office Buildings

190

309

(39

)

2,205

(91

)

Shopping Centers

727

735

(1

)

915

(21

)

Warehouses

222

223

482

(54

)

Other Investment Property

668

349

91

1,047

(36

)

Total Investment Properties

3,613

3,473

4

7,288

(50

)

1-4 Family Construction

55

(100

)

55

(100

)

1-4 Family Investment Mortgage

3,515

3,067

15

2,187

61

Total 1-4 Family Properties

3,515

3,122

13

2,242

57

Commercial Development

nm

625

(100

)

Residential Development

267

267

407

(34

)

Land Acquisition

886

891

(1

)

1,021

(13

)

Land and Development

1,153

1,158

2,053

(44

)

Total Commercial Real Estate

8,281

7,753

7

11,583

(29

)

Consumer Mortgages

39,536

36,847

7

29,997

32

Home Equity

7,967

6,830

17

8,854

(10

)

Other Consumer Loans

6,889

7,220

(5

)

5,955

16

Total Consumer

54,392

50,897

7

44,806

21

Total

$

182,460

$

128,061

42

%

$

132,131

38

%

Synovus

CREDIT QUALITY DATA

(Unaudited)

(Dollars in thousands)

2023

2022

First Quarter

First

Fourth

Third

Second

First

'23 vs '22

Quarter

Quarter

Quarter

Quarter

Quarter

% Change

Non-performing Loans (NPLs)

$

182,460

128,061

122,094

109,024

132,131

38

%

Impaired Loans Held for Sale

447

nm

Other Real Estate and Other Assets

15,320

15,320

26,759

26,759

(100

)

Non-performing Assets (NPAs)

182,460

143,381

137,861

135,783

158,890

15

Allowance for Loan Losses (ALL)

457,010

443,424

421,359

407,837

414,956

10

Reserve for Unfunded Commitments

57,473

57,455

57,936

50,559

47,317

21

Allowance for Credit Losses (ACL)

514,483

500,879

479,295

458,396

462,273

11

Net Charge-Offs - Quarter

18,550

13,300

4,682

16,565

18,609

Net Charge-Offs - YTD

18,550

53,156

39,856

35,174

18,609

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

0.17

%

0.12

0.04

0.16

0.19

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

0.17

0.13

0.13

0.18

0.19

NPLs / Loans

0.41

0.29

0.29

0.26

0.33

NPAs / Loans, ORE and specific other assets

0.41

0.33

0.32

0.33

0.40

ACL/Loans

1.17

1.15

1.13

1.11

1.15

ALL/Loans

1.04

1.01

0.99

0.99

1.03

ACL/NPLs

281.97

391.13

392.56

420.45

349.86

ALL/NPLs

250.47

346.26

345.11

374.08

314.05

Past Due Loans over 90 days and Still Accruing

$

3,529

3,373

3,443

2,251

3,067

15

As a Percentage of Loans Outstanding

0.01

%

0.01

0.01

0.01

0.01

Total Past Due Loans and Still Accruing

$

55,053

65,568

63,545

56,160

45,385

21

As a Percentage of Loans Outstanding

0.12

%

0.15

0.15

0.14

0.11

(1) Ratio is annualized.

SELECTED CAPITAL INFORMATION (1)

(Unaudited)

(Dollars in thousands)

March 31,
2023

December 31,
2022

March 31,
2022

Common Equity Tier 1 Capital Ratio

9.76

%

9.63

9.49

Tier 1 Capital Ratio

10.79

10.68

10.63

Total Risk-Based Capital Ratio

12.69

12.54

12.56

Tier 1 Leverage Ratio

9.14

9.07

8.87

Total Shareholders' Equity as a Percentage of Total Assets

7.71

7.49

8.55

Tangible Common Equity Ratio (2) (4)

6.12

5.84

6.80

Book Value Per Common Share (3)

$

28.98

27.07

29.50

Tangible Book Value Per Common Share (2)

25.71

23.78

26.16

(1) Current quarter regulatory capital information is preliminary.

(2) Excludes the carrying value of goodwill and other intangible assets from common equity and total assets.

(3) Book Value Per Common Share consists of Total Shareholders' Equity less Preferred Stock divided by total common shares outstanding.

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20230418006271/en/

Contacts

Media Contact
Audria Belton
Media Relations
media@synovus.com

Investor Contact
Cal Evans
Investor Relations
investorrelations@synovus.com