Synovus Financial Corporation
01/15/2025 | Press release | Distributed by Public on 01/15/2025 17:25
Synovus announces earnings for the fourth quarter 2024
Diluted earnings per share of $1.25 vs. $0.41 in 4Q23
Adjusted diluted earnings per share of $1.25 vs. $0.80 in 4Q23
COLUMBUS, Ga.--(BUSINESS WIRE)-- Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter and year ended Dec. 31, 2024. "Over the past year, Synovus has successfully implemented our relationship-building strategies, resulting in strong growth across core commercial lending, deposits and key fee-producing businesses. We maintained strict control over operating expenses, saw improvements in loan losses and increased our Common Equity Tier 1 ratio1 to the highest level in over 10 years. This momentum, as well as our financial position and accelerated growth orientation, positions us well for continued success in 2025 and beyond," said Synovus Chairman, CEO and President Kevin Blair.
2024 Highlights
- Net income available to common shareholders for 2024 was $439.6 million, or $3.03 per diluted share, compared to $507.8 million, or $3.46 per diluted share in 2023. Adjusted EPS was $4.43 per diluted share compared to $4.12 per diluted share in 2023.
- A $6 million FDIC special assessment incurred in 2024 reduced reported and adjusted EPS by $0.03, while a $51 million FDIC special assessment impacted 2023 reported and adjusted EPS by $0.26.
- Pre-provision net revenue was $741.6 million in 2024 compared to $885.2 million in 2023, primarily attributable to lower non-interest revenue from a $257 million securities loss in the second quarter 2024.
- Net interest income was $1.75 billion in 2024, down from $1.82 billion in the prior year, largely due to a decline in loan balances.
- Period-end loans declined $795.5 million, or 2%, in 2024 as line utilization declined, payoffs increased and non-relationship credits were rationalized.
- Period-end deposits increased $356.2 million, or 1%, primarily driven by growth in time deposits, money market, interest-bearing demand deposits and public funds, partially offset by a decline in non-interest-bearing deposits. Brokered deposits declined $1.17 billion, or 19%, in 2024.
- Non-interest revenue was $239.6 million, down 41% from 2023, primarily from a $257 million securities loss in the second quarter 2024. However, adjusted non-interest revenue of $490.4 million grew 6% in 2024, primarily attributable to Treasury Management fees, Capital Markets income and Wealth revenue, as well as revenue from Commercial Sponsorship fees.
- Non-interest expense was $1.25 billion, down 7%, while adjusted non-interest expense declined 3% year over year in 2024 to $1.23 billion, primarily due to a $51 million FDIC special assessment incurred in fourth quarter 2023.
- Credit quality remains healthy. Net charge-offs were 0.31% of average loans compared to 0.35% in 2023. The provision for credit losses declined to $136.7 million in 2024 compared to $189.1 million in the prior year. The allowance for credit losses ended the year at 1.27% compared to 1.24% at the end of 2023.
- The year-end CET1 ratio1 increased 62 basis points year over year to 10.84%.
Fourth Quarter 2024 Highlights
- Net income available to common shareholders was $178.8 million, or $1.25 per diluted share, up 6% sequentially, and up sharply from $60.6 million in the fourth quarter 2023.
- Pre-provision net revenue of $271.3 million increased $20.2 million, or 8%, sequentially and was up $135.4 million, or 100%, compared to the fourth quarter 2023.
- Net interest income increased $14.3 million, or 3%, compared to the prior quarter and was up $17.8 million, or 4%, compared to the fourth quarter 2023, primarily attributable to lower funding costs. Net interest margin was 3.28%, which was up from the prior quarter supported by lower funding costs and loan hedge maturities as well as a non-recurring favorable interest adjustment which impacted the NIM by 4 basis points.
- Period-end loans declined $512 million, or 1%, from the third quarter, as loan production, excluding secondary mortgage, was more than offset by lower line utilization, higher loan payoffs and strategic declines in non-relationship syndicated lending and third-party consumer lending.
- Core deposits, which excludes brokered deposits, increased $1.13 billion, or 3%, sequentially. Total deposits ended the quarter at $51.10 billion, an increase of $901.6 million or 2% sequentially, as a result of the focus on deposit production, public funds seasonality and middle market deposit growth. Total deposit costs declined 26 basis points from the third quarter 2024 to 2.46%.
- Non-interest revenue of $125.6 million rose 1% from the third quarter and increased $74.1 million, or 144%, compared to the fourth quarter 2023. Adjusted non-interest revenue of $124.6 million increased $2.7 million, or 2%, sequentially and fell $1.5 million, or 1%, compared to the fourth quarter 2023. Core Banking fees, Wealth revenue and Capital Markets income drove sequential growth in non-interest revenue. Year over year growth in Treasury Management fees, Capital Markets income, and Wealth revenue was outweighed by elevated Commercial Sponsorship fees in the fourth quarter of 2023.
- Non-interest expense of $309.3 million was down $4.4 million, or 1% sequentially. Adjusted non-interest expense increased 2% sequentially to $309.0 million. Compared to the prior year, non-interest expense and adjusted non-interest expense were both down 12% as a result of the $51 million FDIC special assessment in 2023. Headcount declined 2% year over year.
- Credit quality ratios remain healthy. The non-performing loan and asset ratios were both stable at 0.73%; the net charge-off ratio for the quarter was 0.26%, and total past dues were 0.26% of total loans outstanding.
- Provision for credit losses was $32.9 million, up $9.4 million sequentially and down from $45.5 million in the fourth quarter of 2023. The allowance for credit losses ratio (to loans) of 1.27% was up 3 basis points sequentially and compared to the prior year.
- The CET1 ratio1increased sequentially to 10.84% as strong earnings accretion more than offset approximately $50 million in common share repurchases during the fourth quarter.
| ________________________ |
|
1 Preliminary |
Fourth Quarter 2024 Summary
|
Reported |
Adjusted |
||||||||||||||||||||||
|
(dollars in thousands) |
4Q24 |
3Q24 |
4Q23 |
4Q24 |
3Q24 |
4Q23 |
|||||||||||||||||
|
Net income available to common shareholders |
$ |
178,848 |
$ |
169,628 |
$ |
60,645 |
$ |
178,331 |
$ |
177,120 |
$ |
116,901 |
|||||||||||
|
Diluted earnings per share |
1.25 |
1.18 |
0.41 |
1.25 |
1.23 |
0.80 |
|||||||||||||||||
|
Total revenue |
580,580 |
564,720 |
488,682 |
581,054 |
564,051 |
564,593 |
|||||||||||||||||
|
Total loans |
42,609,028 |
43,120,674 |
43,404,490 |
N/A |
N/A |
N/A |
|||||||||||||||||
|
Total deposits |
51,095,359 |
50,193,740 |
50,739,185 |
N/A |
N/A |
N/A |
|||||||||||||||||
|
Return on avg assets(1) |
1.25 |
% |
1.21 |
% |
0.47 |
% |
1.25 |
% |
1.26 |
% |
0.84 |
% |
|||||||||||
|
Return on avg common equity(1) |
14.75 |
14.38 |
5.88 |
14.71 |
15.02 |
11.34 |
|||||||||||||||||
|
Return on avg tangible common equity(1) |
16.72 |
16.38 |
7.02 |
16.67 |
17.09 |
13.28 |
|||||||||||||||||
|
Net interest margin |
3.28 |
% |
3.22 |
% |
3.11 |
% |
N/A |
N/A |
N/A |
||||||||||||||
|
Efficiency ratio-TE(2)(3) |
53.15 |
55.41 |
72.03 |
52.69 |
52.97 |
61.97 |
|||||||||||||||||
|
NCO ratio-QTD |
0.26 |
0.25 |
0.38 |
N/A |
N/A |
N/A |
|||||||||||||||||
|
NPA ratio |
0.73 |
0.73 |
0.66 |
N/A |
N/A |
N/A |
|||||||||||||||||
|
(1) Annualized (2) Taxable equivalent (3) Adjusted tangible efficiency ratio N/A- not applicable |
|||||||||||||||||||||||
Balance Sheet
|
Loans* |
|||||||||||||||||||||||||
|
(dollars in millions) |
4Q24 |
3Q24 |
Linked |
Linked |
4Q23 |
Year/Year |
Year/Year |
||||||||||||||||||
|
Commercial & industrial |
$ |
22,331.1 |
$ |
22,664.0 |
$ |
(332.9 |
) |
(1 |
)% |
$ |
22,598.5 |
$ |
(267.4 |
) |
(1 |
)% |
|||||||||
|
Commercial real estate |
12,014.6 |
12,177.5 |
(162.9 |
) |
(1 |
) |
12,316.8 |
(302.1 |
) |
(2 |
) |
||||||||||||||
|
Consumer |
8,263.3 |
8,279.2 |
(15.9 |
) |
- |
8,489.2 |
(226.0 |
) |
(3 |
) |
|||||||||||||||
|
Total loans |
$ |
42,609.0 |
$ |
43,120.7 |
$ |
(511.6 |
) |
(1 |
)% |
$ |
43,404.5 |
$ |
(795.5 |
) |
(2 |
)% |
|||||||||
|
* Amounts may not total due to rounding |
|||||||||||||||||||||||||
|
Deposits* |
|||||||||||||||||||||||||
|
(dollars in millions) |
4Q24 |
3Q24 |
Linked |
Linked |
4Q23 |
Year/Year |
Year/Year |
||||||||||||||||||
|
Non-interest-bearing DDA |
$ |
10,974.6 |
$ |
11,129.1 |
$ |
(154.5 |
) |
(1 |
)% |
$ |
11,801.2 |
$ |
(826.6 |
) |
(7 |
)% |
|||||||||
|
Interest-bearing DDA |
7,199.7 |
6,821.3 |
378.4 |
6 |
6,541.0 |
658.7 |
10 |
||||||||||||||||||
|
Money market |
11,407.4 |
11,031.5 |
375.9 |
3 |
10,819.7 |
587.7 |
5 |
||||||||||||||||||
|
Savings |
971.1 |
983.2 |
(12.1 |
) |
(1 |
) |
1,062.6 |
(91.5 |
) |
(9 |
) |
||||||||||||||
|
Public funds |
7,987.5 |
7,047.6 |
939.9 |
13 |
7,349.5 |
638.0 |
9 |
||||||||||||||||||
|
Time deposits |
7,679.9 |
8,075.7 |
(395.8 |
) |
(5 |
) |
7,122.2 |
557.7 |
8 |
||||||||||||||||
|
Brokered deposits |
4,875.2 |
5,105.4 |
(230.2 |
) |
(5 |
) |
6,043.0 |
(1,167.8 |
) |
(19 |
) |
||||||||||||||
|
Total deposits |
$ |
51,095.4 |
$ |
50,193.7 |
$ |
901.6 |
2 |
% |
$ |
50,739.2 |
$ |
356.2 |
1 |
% |
|||||||||||
|
* Amounts may not total due to rounding |
|||||||||||||||||||||||||
|
Income Statement Summary* |
|||||||||||||||||||||||||
|
(in thousands, except per share data) |
4Q24 |
3Q24 |
Linked |
Linked |
4Q23 |
Year/Year |
Year/Year |
||||||||||||||||||
|
Net interest income |
$ |
454,993 |
$ |
440,740 |
$ |
14,253 |
3 |
% |
$ |
437,214 |
$ |
17,779 |
4 |
% |
|||||||||||
|
Non-interest revenue |
125,587 |
123,980 |
1,607 |
1 |
51,468 |
74,119 |
144 |
||||||||||||||||||
|
Non-interest expense |
309,311 |
313,690 |
(4,379 |
) |
(1 |
) |
352,858 |
(43,547 |
) |
(12 |
) |
||||||||||||||
|
Provision for (reversal of) credit losses |
32,867 |
23,434 |
9,433 |
40 |
45,472 |
(12,605 |
) |
(28 |
) |
||||||||||||||||
|
Income before taxes |
$ |
238,402 |
$ |
227,596 |
$ |
10,806 |
5 |
% |
$ |
90,352 |
$ |
148,050 |
164 |
% |
|||||||||||
|
Income tax expense |
49,025 |
46,912 |
2,113 |
5 |
20,779 |
28,246 |
136 |
||||||||||||||||||
|
Net income |
189,377 |
180,684 |
8,693 |
5 |
69,573 |
119,804 |
172 |
||||||||||||||||||
|
Less: Net income (loss) attributable to noncontrolling interest |
(1,049 |
) |
(871 |
) |
(178 |
) |
(20 |
) |
(768 |
) |
(281 |
) |
(37 |
) |
|||||||||||
|
Net income (loss) attributable to Synovus Financial Corp. |
190,426 |
181,555 |
8,871 |
5 |
70,341 |
120,085 |
171 |
||||||||||||||||||
|
Less: Preferred stock dividends |
11,578 |
11,927 |
(349 |
) |
(3 |
) |
9,696 |
1,882 |
19 |
||||||||||||||||
|
Net income available to common shareholders |
$ |
178,848 |
$ |
169,628 |
$ |
9,220 |
5 |
% |
$ |
60,645 |
$ |
118,203 |
195 |
% |
|||||||||||
|
Weighted average common shares outstanding, diluted |
142,694 |
143,979 |
(1,285 |
) |
(1 |
) |
146,877 |
(4,183 |
) |
(3 |
) |
||||||||||||||
|
Diluted earnings per share |
$ |
1.25 |
$ |
1.18 |
$ |
0.07 |
6 |
% |
$ |
0.41 |
$ |
0.84 |
204 |
% |
|||||||||||
|
Adjusted diluted earnings per share |
$ |
1.25 |
$ |
1.23 |
$ |
0.02 |
2 |
% |
$ |
0.80 |
$ |
0.45 |
56 |
% |
|||||||||||
|
Effective tax rate |
20.56 |
% |
20.61 |
% |
23.00 |
% |
|||||||||||||||||||
|
* Amounts may not total due to rounding |
|||||||||||||||||||||||||
|
Capital Ratios |
||||||||
|
4Q24 |
3Q24 |
4Q23 |
||||||
|
Common equity Tier 1 capital (CET1) ratio |
10.84 |
% |
* |
10.64 |
% |
10.22 |
% |
|
|
Tier 1 capital ratio |
11.96 |
* |
11.76 |
11.28 |
||||
|
Total risk-based capital ratio |
13.80 |
* |
13.60 |
13.07 |
||||
|
Tier 1 leverage ratio |
9.55 |
* |
9.55 |
9.49 |
||||
|
Tangible common equity ratio |
7.02 |
7.28 |
6.84 |
|||||
|
* Ratios are preliminary |
||||||||
Fourth Quarter 2024 Earnings Conference Call
Synovus will host an earnings highlights conference call with an accompanying slide presentation at 8:30 a.m. ET on Jan. 16, 2025. The earnings call can be accessed with the listen-only dial-in phone number: 833-470-1428 (code: 865307). 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 at least 12 months and will be available approximately one hour after the call.
Synovus Financial Corp. is a financial services company based in Columbus, Georgia, with approximately $60 billion in assets. Synovus provides commercial and consumer banking and a full suite of specialized products and services, including wealth services, treasury management, mortgage services, premium finance, asset-based lending, structured lending, capital markets and international banking. As of Dec. 31, 2024, Synovus has 244 branches in Georgia, Alabama, Florida, South Carolina, and Tennessee. Synovus is a Great Place to Work-Certified Company. Learn more about Synovus at synovus.com.
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 intended strategies, initiatives, and other operational and execution goals; 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, 2023, 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 net income available to common shareholders; adjusted diluted earnings per share; adjusted non-interest revenue, adjusted non-interest expense; adjusted revenue taxable equivalent (TE); adjusted tangible efficiency ratio; adjusted pre-provision net revenue (PPNR); 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 net income available to common shareholders; diluted earnings per share; total non-interest revenue; total non-interest expense; total revenue; efficiency ratio-TE; PPNR; return on average assets; return on average common equity; and the ratio of total Synovus Financial Corp. 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 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. Adjusted non-interest revenue and adjusted revenue (TE) are measures used by management to evaluate non-interest revenue and total revenue exclusive of net investment securities gains (losses), fair value adjustments 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. 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. Adjusted PPNR is used by management to evaluate PPNR exclusive of items that management believes are not indicative of ongoing operations and impact period-to-period comparisons. The tangible common equity ratio is used by stakeholders to assess our capital position. The computations of these measures are set forth in the tables below.
|
Reconciliation of Non-GAAP Financial Measures |
|||||||||||||||||||
|
(in thousands, except per share data) |
4Q24 |
3Q24 |
4Q23 |
2024 |
2023 |
||||||||||||||
|
Adjusted net income available to common shareholders and adjusted net income per common share, diluted |
|||||||||||||||||||
|
Net income available to common shareholders |
$ |
178,848 |
$ |
169,628 |
$ |
60,645 |
$ |
439,557 |
$ |
507,755 |
|||||||||
|
Valuation adjustment on Globalt earnout |
(719 |
) |
- |
- |
(719 |
) |
- |
||||||||||||
|
(Gain) on sale of GLOBALT |
- |
- |
- |
- |
(1,929 |
) |
|||||||||||||
|
Restructuring charges (reversals) |
37 |
1,219 |
1,231 |
2,121 |
17,707 |
||||||||||||||
|
Valuation adjustment to Visa derivative |
- |
8,700 |
- |
8,700 |
3,927 |
||||||||||||||
|
(Gain) on early extinguishment of debt |
- |
- |
(4,497 |
) |
- |
(5,400 |
) |
||||||||||||
|
Recovery of NPA |
- |
- |
- |
- |
(13,126 |
) |
|||||||||||||
|
Loss on other loans held for sale |
- |
- |
- |
- |
50,064 |
||||||||||||||
|
Investment securities (gains) losses, net |
- |
- |
77,748 |
256,660 |
76,718 |
||||||||||||||
|
Tax effect of adjustments(1) |
165 |
(2,427 |
) |
(18,226 |
) |
(64,423 |
) |
(31,312 |
) |
||||||||||
|
Adjusted net income available to common shareholders |
$ |
178,331 |
$ |
177,120 |
$ |
116,901 |
$ |
641,896 |
$ |
604,404 |
|||||||||
|
Weighted average common shares outstanding, diluted |
142,694 |
143,979 |
146,877 |
144,998 |
146,734 |
||||||||||||||
|
Net income per common share, diluted |
$ |
1.25 |
$ |
1.18 |
$ |
0.41 |
$ |
3.03 |
$ |
3.46 |
|||||||||
|
Adjusted net income per common share, diluted |
1.25 |
1.23 |
0.80 |
4.43 |
4.12 |
||||||||||||||
|
(1) An assumed marginal tax rate of 24.2% for 4Q24 and 2024 and 24.5% for 3Q24, 4Q23, and 2023 was applied. |
|
(dollars in thousands) |
4Q24 |
3Q24 |
4Q23 |
2024 |
2023 |
||||||||||||||
|
Adjusted non-interest revenue |
|||||||||||||||||||
|
Total non-interest revenue |
$ |
125,587 |
$ |
123,980 |
$ |
51,468 |
$ |
239,604 |
$ |
404,010 |
|||||||||
|
Valuation adjustment on Globalt earnout |
(719 |
) |
- |
- |
(719 |
) |
- |
||||||||||||
|
(Gain) on sale of GLOBALT |
- |
- |
- |
- |
(1,929 |
) |
|||||||||||||
|
Recovery of NPA |
- |
- |
- |
- |
(13,126 |
) |
|||||||||||||
|
Investment securities (gains) losses, net |
- |
- |
77,748 |
256,660 |
76,718 |
||||||||||||||
|
Fair value adjustment on non-qualified deferred compensation |
(237 |
) |
(2,062 |
) |
(3,053 |
) |
(5,159 |
) |
(4,987 |
) |
|||||||||
|
Adjusted non-interest revenue |
$ |
124,631 |
$ |
121,918 |
$ |
126,163 |
$ |
490,386 |
$ |
460,686 |
|||||||||
|
Adjusted non-interest expense |
|||||||||||||||||||
|
Total non-interest expense |
$ |
309,311 |
$ |
313,690 |
$ |
352,858 |
$ |
1,247,543 |
$ |
1,335,424 |
|||||||||
|
Loss on other loans held for sale |
- |
- |
- |
- |
(50,064 |
) |
|||||||||||||
|
Restructuring (charges) reversals |
(37 |
) |
(1,219 |
) |
(1,231 |
) |
(2,121 |
) |
(17,707 |
) |
|||||||||
|
Valuation adjustment to Visa derivative |
- |
(8,700 |
) |
- |
(8,700 |
) |
(3,927 |
) |
|||||||||||
|
Gain (loss) on early extinguishment of debt |
- |
- |
4,497 |
- |
5,400 |
||||||||||||||
|
Fair value adjustment on non-qualified deferred compensation |
(237 |
) |
(2,062 |
) |
(3,053 |
) |
(5,159 |
) |
(4,987 |
) |
|||||||||
|
Adjusted non-interest expense |
$ |
309,037 |
$ |
301,709 |
$ |
353,071 |
$ |
1,231,563 |
$ |
1,264,139 |
|||||||||
|
Reconciliation of Non-GAAP Financial Measures, continued |
|||||||||||
|
(dollars in thousands) |
4Q24 |
3Q24 |
4Q23 |
||||||||
|
Adjusted revenue (TE) and adjusted tangible efficiency ratio |
|||||||||||
|
Adjusted non-interest expense |
$ |
309,037 |
$ |
301,709 |
$ |
353,071 |
|||||
|
Amortization of intangibles |
(2,888 |
) |
(2,907 |
) |
(3,168 |
) |
|||||
|
Adjusted tangible non-interest expense |
$ |
306,149 |
$ |
298,802 |
$ |
349,903 |
|||||
|
Net interest income |
$ |
454,993 |
$ |
440,740 |
$ |
437,214 |
|||||
|
Tax equivalent adjustment |
1,430 |
1,393 |
1,216 |
||||||||
|
Net interest income (TE) |
$ |
456,423 |
$ |
442,133 |
$ |
438,430 |
|||||
|
Net interest income |
$ |
454,993 |
$ |
440,740 |
$ |
437,214 |
|||||
|
Total non-interest revenue |
125,587 |
123,980 |
51,468 |
||||||||
|
Total revenue |
580,580 |
564,720 |
488,682 |
||||||||
|
Tax equivalent adjustment |
1,430 |
1,393 |
1,216 |
||||||||
|
Total TE revenue |
$ |
582,010 |
$ |
566,113 |
$ |
489,898 |
|||||
|
Valuation adjustment on Globalt earnout |
(719 |
) |
- |
- |
|||||||
|
Investment securities (gains) losses, net |
- |
- |
77,748 |
||||||||
|
Fair value adjustment on non-qualified deferred compensation |
(237 |
) |
(2,062 |
) |
(3,053 |
) |
|||||
|
Adjusted revenue (TE) |
$ |
581,054 |
$ |
564,051 |
$ |
564,593 |
|||||
|
Efficiency ratio-(TE) |
53.15 |
% |
55.41 |
% |
72.03 |
% |
|||||
|
Adjusted tangible efficiency ratio |
52.69 |
52.97 |
61.97 |
||||||||
|
Adjusted pre-provision net revenue |
|||||||||||
|
Net interest income |
$ |
454,993 |
$ |
440,740 |
$ |
437,214 |
|||||
|
Total non-interest revenue |
125,587 |
123,980 |
51,468 |
||||||||
|
Total non-interest expense |
(309,311 |
) |
(313,690 |
) |
(352,858 |
) |
|||||
|
Pre-provision net revenue (PPNR) |
$ |
271,269 |
$ |
251,030 |
$ |
135,824 |
|||||
|
Adjusted revenue (TE) |
$ |
581,054 |
$ |
564,051 |
$ |
564,593 |
|||||
|
Adjusted non-interest expense |
(309,037 |
) |
(301,709 |
) |
(353,071 |
) |
|||||
|
Adjusted PPNR |
$ |
272,017 |
$ |
262,342 |
$ |
211,522 |
|||||
|
Reconciliation of Non-GAAP Financial Measures, continued |
|||||||||||
|
(dollars in thousands) |
4Q24 |
3Q24 |
4Q23 |
||||||||
|
Adjusted return on average assets (annualized) |
|||||||||||
|
Net income |
$ |
189,377 |
$ |
180,684 |
$ |
69,573 |
|||||
|
Restructuring charges (reversals) |
37 |
1,219 |
1,231 |
||||||||
|
Valuation adjustment on Globalt earnout |
(719 |
) |
- |
- |
|||||||
|
Valuation adjustment to Visa derivative |
- |
8,700 |
- |
||||||||
|
(Gain) on early extinguishment of debt |
- |
- |
(4,497 |
) |
|||||||
|
Investment securities (gains) losses, net |
- |
- |
77,748 |
||||||||
|
Tax effect of adjustments(1) |
165 |
(2,427 |
) |
(18,226 |
) |
||||||
|
Adjusted net income |
$ |
188,860 |
$ |
188,176 |
$ |
125,829 |
|||||
|
Net income annualized |
$ |
753,391 |
$ |
718,808 |
$ |
276,023 |
|||||
|
Adjusted net income annualized |
$ |
751,334 |
$ |
748,613 |
$ |
499,213 |
|||||
|
Total average assets |
$ |
60,174,616 |
$ |
59,183,624 |
$ |
59,164,065 |
|||||
|
Return on average assets (annualized) |
1.25 |
% |
1.21 |
% |
0.47 |
% |
|||||
|
Adjusted return on average assets (annualized) |
1.25 |
1.26 |
0.84 |
||||||||
|
(1) An assumed marginal tax rate of 24.2% for 4Q24 and 24.5% for 3Q24 and 4Q23 was applied. |
|||||||||||
|
Reconciliation of Non-GAAP Financial Measures, continued |
|||||||||||
|
(dollars in thousands) |
4Q24 |
3Q24 |
4Q23 |
||||||||
|
Adjusted return on average common equity, return on average tangible common equity, and adjusted return on average tangible common equity (annualized) |
|||||||||||
|
Net income available to common shareholders |
$ |
178,848 |
$ |
169,628 |
$ |
60,645 |
|||||
|
Restructuring charges (reversals) |
37 |
1,219 |
1,231 |
||||||||
|
Valuation adjustment on Globalt earnout |
(719 |
) |
- |
- |
|||||||
|
Valuation adjustment to Visa derivative |
- |
8,700 |
- |
||||||||
|
(Gain) on early extinguishment of debt |
- |
- |
(4,497 |
) |
|||||||
|
Investment securities (gains) losses, net |
- |
- |
77,748 |
||||||||
|
Tax effect of adjustments(1) |
165 |
(2,427 |
) |
(18,226 |
) |
||||||
|
Adjusted net income available to common shareholders |
$ |
178,331 |
$ |
177,120 |
$ |
116,901 |
|||||
|
Adjusted net income available to common shareholders annualized |
$ |
709,447 |
$ |
704,630 |
$ |
463,792 |
|||||
|
Amortization of intangibles, tax effected, annualized |
8,715 |
8,735 |
9,493 |
||||||||
|
Adjusted net income available to common shareholders excluding amortization of intangibles annualized |
$ |
718,162 |
$ |
713,365 |
$ |
473,285 |
|||||
|
Net income available to common shareholders annualized |
$ |
711,504 |
$ |
674,824 |
$ |
240,602 |
|||||
|
Amortization of intangibles, tax effected, annualized |
8,715 |
8,735 |
9,493 |
||||||||
|
Net income available to common shareholders excluding amortization of intangibles annualized |
$ |
720,219 |
$ |
683,559 |
$ |
250,095 |
|||||
|
Total average Synovus Financial Corp. shareholders' equity less preferred stock |
$ |
4,824,003 |
$ |
4,692,722 |
$ |
4,090,163 |
|||||
|
Average goodwill |
(480,440 |
) |
(480,440 |
) |
(479,858 |
) |
|||||
|
Average other intangible assets, net |
(35,869 |
) |
(38,793 |
) |
(47,502 |
) |
|||||
|
Total average Synovus Financial Corp. tangible shareholders' equity less preferred stock |
$ |
4,307,694 |
$ |
4,173,489 |
$ |
3,562,803 |
|||||
|
Return on average common equity (annualized) |
14.75 |
% |
14.38 |
% |
5.88 |
% |
|||||
|
Adjusted return on average common equity (annualized) |
14.71 |
15.02 |
11.34 |
||||||||
|
Return on average tangible common equity (annualized) |
16.72 |
16.38 |
7.02 |
||||||||
|
Adjusted return on average tangible common equity (annualized) |
16.67 |
17.09 |
13.28 |
||||||||
|
(1) An assumed marginal tax rate of 24.2% for 4Q24 and 24.5% for 3Q24 and 4Q23 was applied. |
|
Reconciliation of Non-GAAP Financial Measures, continued |
|||||||||||
|
December 31, |
September 30, |
December 31, |
|||||||||
|
(dollars in thousands) |
2024 |
2024 |
2023 |
||||||||
|
Tangible common equity ratio |
|||||||||||
|
Total assets |
$ |
60,233,644 |
$ |
59,589,628 |
$ |
59,809,534 |
|||||
|
Goodwill |
(480,440 |
) |
(480,440 |
) |
(480,440 |
) |
|||||
|
Other intangible assets, net |
(34,318 |
) |
(37,207 |
) |
(45,928 |
) |
|||||
|
Tangible assets |
$ |
59,718,886 |
$ |
59,071,981 |
$ |
59,283,166 |
|||||
|
Total Synovus Financial Corp. shareholders' equity |
$ |
5,244,557 |
$ |
5,355,976 |
$ |
5,119,993 |
|||||
|
Goodwill |
(480,440 |
) |
(480,440 |
) |
(480,440 |
) |
|||||
|
Other intangible assets, net |
(34,318 |
) |
(37,207 |
) |
(45,928 |
) |
|||||
|
Preferred stock, no par value |
(537,145 |
) |
(537,145 |
) |
(537,145 |
) |
|||||
|
Tangible common equity |
$ |
4,192,654 |
$ |
4,301,184 |
$ |
4,056,480 |
|||||
|
Total Synovus Financial Corp. shareholders' equity to total assets ratio |
8.71 |
% |
8.99 |
% |
8.56 |
% |
|||||
|
Tangible common equity ratio |
7.02 |
7.28 |
6.84 |
||||||||
|
Synovus |
Exhibit 99.2 |
|||||||||
|
INCOME STATEMENT DATA |
||||||||||
|
(Unaudited) |
Years Ended |
|||||||||
|
(Dollars in thousands, except per share data) |
December 31, |
|||||||||
|
2024 |
2023 |
% Change |
||||||||
|
Interest income |
$ |
3,193,589 |
$ |
3,050,358 |
5 |
% |
||||
|
Interest expense |
1,444,012 |
1,233,703 |
17 |
|||||||
|
Net interest income |
1,749,577 |
1,816,655 |
(4 |
) |
||||||
|
Provision for (reversal of) credit losses |
136,685 |
189,079 |
(28 |
) |
||||||
|
Net interest income after provision for credit losses |
1,612,892 |
1,627,576 |
(1 |
) |
||||||
|
Non-interest revenue: |
||||||||||
|
Service charges on deposit accounts |
91,647 |
90,096 |
2 |
|||||||
|
Fiduciary and asset management fees |
79,828 |
78,077 |
2 |
|||||||
|
Card fees |
76,920 |
72,357 |
6 |
|||||||
|
Brokerage revenue |
84,881 |
90,004 |
(6 |
) |
||||||
|
Mortgage banking income |
14,060 |
15,157 |
(7 |
) |
||||||
|
Capital markets income |
44,058 |
39,045 |
13 |
|||||||
|
Income from bank-owned life insurance |
34,429 |
31,429 |
10 |
|||||||
|
Investment securities gains (losses), net |
(256,660 |
) |
(76,718 |
) |
(235 |
) |
||||
|
Recovery of NPA |
- |
13,126 |
nm |
|||||||
|
Other non-interest revenue |
70,441 |
51,437 |
37 |
|||||||
|
Total non-interest revenue |
239,604 |
404,010 |
(41 |
) |
||||||
|
Non-interest expense: |
||||||||||
|
Salaries and other personnel expense |
737,467 |
728,378 |
1 |
|||||||
|
Net occupancy, equipment, and software expense |
187,451 |
179,581 |
4 |
|||||||
|
Third-party processing and other services |
85,751 |
86,649 |
(1 |
) |
||||||
|
Professional fees |
46,089 |
39,854 |
16 |
|||||||
|
FDIC insurance and other regulatory fees |
45,921 |
94,737 |
(52 |
) |
||||||
|
Restructuring charges (reversals) |
2,121 |
17,707 |
(88 |
) |
||||||
|
Loss on other loans held for sale |
- |
50,064 |
nm |
|||||||
|
Other operating expenses |
142,743 |
138,454 |
3 |
|||||||
|
Total non-interest expense |
1,247,543 |
1,335,424 |
(7 |
) |
||||||
|
Income before income taxes |
604,953 |
696,162 |
(13 |
) |
||||||
|
Income tax expense |
125,502 |
154,021 |
(19 |
) |
||||||
|
Net income |
479,451 |
542,141 |
(12 |
) |
||||||
|
Less: Net income (loss) attributable to noncontrolling interest |
(3,009 |
) |
(1,564 |
) |
(92 |
) |
||||
|
Net income attributable to Synovus Financial Corp. |
482,460 |
543,705 |
(11 |
) |
||||||
|
Less: Preferred stock dividends |
42,903 |
35,950 |
19 |
|||||||
|
Net income available to common shareholders |
$ |
439,557 |
$ |
507,755 |
(13 |
)% |
||||
|
Net income per common share, basic |
3.05 |
3.48 |
(12 |
)% |
||||||
|
Net income per common share, diluted |
3.03 |
3.46 |
(12 |
) |
||||||
|
Cash dividends declared per common share |
1.52 |
1.52 |
- |
|||||||
|
Return on average assets |
0.81 |
% |
0.90 |
% |
(9)bps |
|||||
|
Return on average common equity |
9.50 |
12.17 |
(267 |
) |
||||||
|
Weighted average common shares outstanding, basic |
144,164 |
146,115 |
(1 |
)% |
||||||
|
Weighted average common shares outstanding, diluted |
144,998 |
146,734 |
(1 |
) |
||||||
|
nm - not meaningful bps - basis points Amounts may not total due to rounding |
|
Synovus |
||||||||||||||||||
|
INCOME STATEMENT DATA |
||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||
|
(Dollars in thousands, except per share data) |
2024 |
2023 |
Fourth |
|||||||||||||||
|
Fourth |
Third |
Second |
First |
Fourth |
'24 vs '23 |
|||||||||||||
|
Interest income |
$ |
799,130 |
810,507 |
801,242 |
782,710 |
788,297 |
1 |
% |
||||||||||
|
Interest expense |
344,137 |
369,767 |
366,244 |
363,864 |
351,083 |
(2 |
) |
|||||||||||
|
Net interest income |
454,993 |
440,740 |
434,998 |
418,846 |
437,214 |
4 |
||||||||||||
|
Provision for (reversal of) credit losses |
32,867 |
23,434 |
26,404 |
53,980 |
45,472 |
(28 |
) |
|||||||||||
|
Net interest income after provision for credit losses |
422,126 |
417,306 |
408,594 |
364,866 |
391,742 |
8 |
||||||||||||
|
Non-interest revenue: |
||||||||||||||||||
|
Service charges on deposit accounts |
23,244 |
23,683 |
22,907 |
21,813 |
22,260 |
4 |
||||||||||||
|
Fiduciary and asset management fees |
21,373 |
19,714 |
19,728 |
19,013 |
18,149 |
18 |
||||||||||||
|
Card fees |
19,577 |
18,439 |
19,418 |
19,486 |
20,872 |
(6 |
) |
|||||||||||
|
Brokerage revenue |
20,907 |
20,810 |
20,457 |
22,707 |
21,961 |
(5 |
) |
|||||||||||
|
Mortgage banking income |
2,665 |
4,033 |
3,944 |
3,418 |
3,019 |
(12 |
) |
|||||||||||
|
Capital markets income |
12,070 |
10,284 |
15,077 |
6,627 |
6,456 |
87 |
||||||||||||
|
Income from bank-owned life insurance |
10,543 |
8,442 |
8,097 |
7,347 |
10,324 |
2 |
||||||||||||
|
Investment securities gains (losses), net |
- |
- |
(256,660 |
) |
- |
(77,748 |
) |
nm |
||||||||||
|
Other non-interest revenue |
15,208 |
18,575 |
18,181 |
18,477 |
26,175 |
(42 |
) |
|||||||||||
|
Total non-interest revenue |
125,587 |
123,980 |
(128,851 |
) |
118,888 |
51,468 |
144 |
|||||||||||
|
Non-interest expense: |
||||||||||||||||||
|
Salaries and other personnel expense |
184,725 |
184,814 |
179,407 |
188,521 |
176,712 |
5 |
||||||||||||
|
Net occupancy, equipment, and software expense |
47,251 |
46,977 |
46,415 |
46,808 |
48,146 |
(2 |
) |
|||||||||||
|
Third-party processing and other services |
22,158 |
21,552 |
21,783 |
20,258 |
21,717 |
2 |
||||||||||||
|
Professional fees |
11,949 |
10,854 |
15,655 |
7,631 |
11,147 |
7 |
||||||||||||
|
FDIC insurance and other regulatory fees |
8,227 |
7,382 |
6,493 |
23,819 |
61,470 |
(87 |
) |
|||||||||||
|
Restructuring charges (reversals) |
37 |
1,219 |
(658 |
) |
1,524 |
1,231 |
(97 |
) |
||||||||||
|
Other operating expenses |
34,964 |
40,892 |
32,706 |
34,180 |
32,435 |
8 |
||||||||||||
|
Total non-interest expense |
309,311 |
313,690 |
301,801 |
322,741 |
352,858 |
(12 |
) |
|||||||||||
|
Income (loss) before income taxes |
238,402 |
227,596 |
(22,058 |
) |
161,013 |
90,352 |
164 |
|||||||||||
|
Income tax expense (benefit) |
49,025 |
46,912 |
(7,378 |
) |
36,943 |
20,779 |
136 |
|||||||||||
|
Net income (loss) |
189,377 |
180,684 |
(14,680 |
) |
124,070 |
69,573 |
172 |
|||||||||||
|
Less: Net income (loss) attributable to noncontrolling |
(1,049 |
) |
(871 |
) |
(652 |
) |
(437 |
) |
(768 |
) |
(37 |
) |
||||||
|
Net income (loss) attributable to Synovus Financial Corp. |
190,426 |
181,555 |
(14,028 |
) |
124,507 |
70,341 |
171 |
|||||||||||
|
Less: Preferred stock dividends |
11,578 |
11,927 |
9,713 |
9,685 |
9,696 |
19 |
||||||||||||
|
Net income (loss) available to common shareholders |
$ |
178,848 |
169,628 |
(23,741 |
) |
114,822 |
60,645 |
195 |
||||||||||
|
Net income (loss) per common share, basic |
$ |
1.26 |
1.19 |
(0.16 |
) |
0.78 |
0.41 |
207 |
% |
|||||||||
|
Net income (loss) per common share, diluted |
1.25 |
1.18 |
(0.16 |
) |
0.78 |
0.41 |
204 |
|||||||||||
|
Cash dividends declared per common share |
0.38 |
0.38 |
0.38 |
0.38 |
0.38 |
- |
||||||||||||
|
Return on average assets * |
1.25 |
% |
1.21 |
(0.10 |
) |
0.85 |
0.47 |
78 bps |
||||||||||
|
Return on average common equity * |
14.75 |
14.38 |
(2.14 |
) |
10.17 |
5.88 |
nm |
|||||||||||
|
Weighted average common shares outstanding, basic |
141,555 |
143,144 |
145,565 |
146,430 |
146,372 |
(3 |
)% |
|||||||||||
|
Weighted average common shares outstanding, diluted |
142,694 |
143,979 |
145,565 |
147,122 |
146,877 |
(3 |
) | |||||||||||
|
nm - not meaningful * - ratios are annualized Amounts may not total due to rounding |
|
Synovus |
||||||||||||
|
BALANCE SHEET DATA |
December 31, 2024 |
September 30, 2024 |
December 31, 2023 |
|||||||||
|
(Unaudited) |
||||||||||||
|
(In thousands, except share data) |
||||||||||||
|
ASSETS |
||||||||||||
|
Interest-earning deposits with banks and other cash and cash equivalents |
$ |
2,977,667 |
$ |
1,807,641 |
$ |
2,414,103 |
||||||
|
Federal funds sold and securities purchased under resale agreements |
16,320 |
45,971 |
37,323 |
|||||||||
|
Cash, cash equivalents, and restricted cash |
2,993,987 |
1,853,612 |
2,451,426 |
|||||||||
|
Investment securities held to maturity |
2,581,469 |
2,622,457 |
- |
|||||||||
|
Investment securities available for sale |
7,551,018 |
7,554,168 |
9,788,662 |
|||||||||
|
Loans held for sale ($33,448, $36,943 and $47,338 measured at fair value, respectively) |
90,111 |
121,470 |
52,768 |
|||||||||
|
Loans, net of deferred fees and costs |
42,609,028 |
43,120,674 |
43,404,490 |
|||||||||
|
Allowance for loan losses |
(486,845 |
) |
(484,985 |
) |
(479,385 |
) |
||||||
|
Loans, net |
42,122,183 |
42,635,689 |
42,925,105 |
|||||||||
|
Cash surrender value of bank-owned life insurance |
1,139,988 |
1,133,652 |
1,112,030 |
|||||||||
|
Premises, equipment, and software, net |
383,724 |
380,267 |
365,851 |
|||||||||
|
Goodwill |
480,440 |
480,440 |
480,440 |
|||||||||
|
Other intangible assets, net |
34,318 |
37,207 |
45,928 |
|||||||||
|
Other assets |
2,856,406 |
2,770,666 |
2,587,324 |
|||||||||
|
Total assets |
$ |
60,233,644 |
$ |
59,589,628 |
$ |
59,809,534 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||
|
Liabilities: |
|||||||||||
|
Deposits: |
|||||||||||
|
Non-interest-bearing deposits |
$ |
11,596,119 |
$ |
11,561,626 |
$ |
12,507,616 |
|||||
|
Interest-bearing deposits |
39,499,240 |
38,632,114 |
38,231,569 |
||||||||
|
Total deposits |
51,095,359 |
50,193,740 |
50,739,185 |
||||||||
|
Federal funds purchased and securities sold under repurchase agreements |
131,728 |
94,055 |
189,074 |
||||||||
|
Other short-term borrowings |
- |
- |
3,496 |
||||||||
|
Long-term debt |
1,733,109 |
2,021,050 |
1,932,534 |
||||||||
|
Other liabilities |
2,007,197 |
1,902,612 |
1,801,097 |
||||||||
|
Total liabilities |
54,967,393 |
54,211,457 |
54,665,386 |
||||||||
|
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 342,857,142 shares; issued 172,185,507, 172,077,277, and 171,360,188 respectively; outstanding 141,165,908, 141,997,383, and 146,705,330 respectively |
172,186 |
172,077 |
171,360 |
||||||||
|
Additional paid-in capital |
3,986,729 |
3,976,706 |
3,955,819 |
||||||||
|
Treasury stock, at cost - 31,019,599, 30,079,894, and 24,654,858 shares, respectively |
(1,216,827 |
) |
(1,167,130 |
) |
(944,484 |
) |
|||||
|
Accumulated other comprehensive income (loss), net |
(970,765 |
) |
(773,786 |
) |
(1,117,073 |
) |
|||||
|
Retained earnings |
2,736,089 |
2,610,964 |
2,517,226 |
||||||||
|
Total Synovus Financial Corp. shareholders' equity |
5,244,557 |
5,355,976 |
5,119,993 |
||||||||
|
Noncontrolling interest in subsidiary |
21,694 |
22,195 |
24,155 |
||||||||
|
Total equity |
5,266,251 |
5,378,171 |
5,144,148 |
||||||||
|
Total liabilities and shareholders' equity |
$ |
60,233,644 |
$ |
59,589,628 |
$ |
59,809,534 |
|
Synovus |
||||||||||||||||||||||
|
AVERAGE BALANCES, INTEREST, AND YIELDS/RATES |
||||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||||
|
2024 |
2023 |
|||||||||||||||||||||
|
(dollars in thousands) |
Average Balance |
Interest |
Yield/ Rate |
Average Balance |
Interest |
Yield/ Rate |
||||||||||||||||
|
Assets |
||||||||||||||||||||||
|
Interest earning assets: |
||||||||||||||||||||||
|
Commercial loans(1) (2) |
$ |
34,708,207 |
$ |
2,339,075 |
6.74 |
% |
$ |
35,188,678 |
$ |
2,263,117 |
6.43 |
% |
||||||||||
|
Consumer loans(1) |
8,336,996 |
436,188 |
5.23 |
8,557,650 |
426,266 |
4.98 |
||||||||||||||||
|
Less: Allowance for loan losses |
(484,142 |
) |
- |
- |
(463,493 |
) |
- |
- |
||||||||||||||
|
Loans, net |
42,561,061 |
2,775,263 |
6.52 |
43,282,835 |
2,689,383 |
6.21 |
||||||||||||||||
|
Total investment securities(3) |
10,641,008 |
329,478 |
3.10 |
11,212,956 |
248,294 |
2.21 |
||||||||||||||||
|
Trading account assets |
11,839 |
659 |
5.56 |
15,486 |
886 |
5.72 |
||||||||||||||||
|
Other earning assets(4) |
1,593,100 |
80,711 |
4.99 |
1,414,586 |
71,349 |
4.98 |
||||||||||||||||
|
FHLB and Federal Reserve Bank stock |
178,603 |
9,284 |
5.20 |
254,420 |
14,975 |
5.89 |
||||||||||||||||
|
Mortgage loans held for sale |
33,125 |
2,293 |
6.92 |
46,035 |
2,993 |
6.50 |
||||||||||||||||
|
Other loans held for sale |
68,098 |
1,386 |
2.00 |
469,689 |
27,099 |
5.69 |
||||||||||||||||
|
Total interest earning assets |
55,086,834 |
$ |
3,199,074 |
5.81 |
% |
56,696,007 |
$ |
3,054,979 |
5.39 |
% |
||||||||||||
|
Cash and due from banks |
511,152 |
575,370 |
||||||||||||||||||||
|
Premises and equipment |
377,386 |
367,159 |
||||||||||||||||||||
|
Other real estate |
4,756 |
- |
||||||||||||||||||||
|
Cash surrender value of bank-owned life insurance |
1,125,363 |
1,099,641 |
||||||||||||||||||||
|
Other assets(5) |
2,302,826 |
1,183,691 |
||||||||||||||||||||
|
Total assets |
$ |
59,408,317 |
$ |
59,921,868 |
||||||||||||||||||
|
Liabilities and Shareholders' Equity |
||||||||||||||||||||||
|
Interest-bearing liabilities: |
||||||||||||||||||||||
|
Interest-bearing demand deposits |
$ |
10,879,231 |
$ |
273,480 |
2.51 |
% |
$ |
9,884,039 |
$ |
176,595 |
1.79 |
% |
||||||||||
|
Money market accounts |
13,069,507 |
408,087 |
3.12 |
13,511,442 |
356,562 |
2.64 |
||||||||||||||||
|
Savings deposits |
1,021,838 |
1,262 |
0.12 |
1,229,975 |
1,046 |
0.09 |
||||||||||||||||
|
Time deposits |
8,244,344 |
358,401 |
4.35 |
5,473,405 |
196,481 |
3.59 |
||||||||||||||||
|
Brokered deposits |
5,426,407 |
288,702 |
5.32 |
6,104,461 |
296,071 |
4.85 |
||||||||||||||||
|
Federal funds purchased and securities sold under repurchase agreements |
109,088 |
1,909 |
1.72 |
97,114 |
1,667 |
1.69 |
||||||||||||||||
|
Other short-term borrowings |
45,489 |
2,514 |
5.44 |
528,194 |
24,611 |
4.60 |
||||||||||||||||
|
Long-term debt |
1,607,048 |
109,657 |
6.80 |
3,027,746 |
180,670 |
5.92 |
||||||||||||||||
|
Total interest-bearing liabilities |
40,402,952 |
$ |
1,444,012 |
3.57 |
% |
39,856,376 |
$ |
1,233,703 |
3.10 |
% |
||||||||||||
|
Non-interest-bearing demand deposits |
11,904,120 |
13,662,660 |
||||||||||||||||||||
|
Other liabilities |
1,911,827 |
1,671,489 |
||||||||||||||||||||
|
Shareholders' equity |
5,189,418 |
4,731,343 |
||||||||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
59,408,317 |
$ |
59,921,868 |
||||||||||||||||||
|
Net interest income, taxable equivalent net interest margin(6) |
$ |
1,755,062 |
3.19 |
% |
$ |
1,821,276 |
3.21 |
% |
||||||||||||||
|
Less: taxable-equivalent adjustment |
5,485 |
4,621 |
||||||||||||||||||||
|
Net interest income |
$ |
1,749,577 |
$ |
1,816,655 |
||||||||||||||||||
|
(1) |
Average loans are shown net of unearned income. NPLs are included. Interest income includes fees as follows: 2024 - $49.4 million and 2023 - $47.7 million. |
|
(2) |
Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans to a taxable-equivalent basis. |
|
(3) |
Securities are included on an amortized cost basis with yield and net interest margin calculated accordingly. |
|
(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 $(724.8) million and $(1.62) billion for the years ended December 31, 2024 and 2023, respectively. |
|
(6) |
The net interest margin is calculated by dividing net interest income-TE by average total interest earning assets. |
|
Synovus AVERAGE BALANCES, INTEREST, AND YIELDS/RATES (Unaudited) |
|||||||||||||||||||||||||||
|
Fourth Quarter 2024 |
Third Quarter 2024 |
Fourth Quarter 2023 |
|||||||||||||||||||||||||
|
(dollars in thousands) |
Average |
Interest |
Yield/ |
Average |
Interest |
Yield/ |
Average |
Interest |
Yield/ |
||||||||||||||||||
|
Assets |
|||||||||||||||||||||||||||
|
Interest earning assets: |
|||||||||||||||||||||||||||
|
Commercial loans(1)(2) |
$ |
34,278,042 |
$ |
569,759 |
6.61 |
% |
$ |
34,610,296 |
$ |
592,142 |
6.81 |
% |
$ |
35,106,156 |
$ |
590,588 |
6.67 |
% |
|||||||||
|
Consumer loans(1) |
8,258,712 |
107,507 |
5.19 |
8,298,130 |
109,908 |
5.28 |
8,491,244 |
109,509 |
5.14 |
||||||||||||||||||
|
Less: Allowance for loan losses |
(479,980 |
) |
- |
- |
(482,863 |
) |
- |
- |
(480,332 |
) |
- |
- |
|||||||||||||||
|
Loans, net |
42,056,774 |
677,266 |
6.41 |
42,425,563 |
702,050 |
6.59 |
43,117,068 |
700,097 |
6.45 |
||||||||||||||||||
|
Total investment securities(3) |
10,623,943 |
91,038 |
3.43 |
10,420,665 |
87,643 |
3.36 |
11,164,487 |
65,176 |
2.33 |
||||||||||||||||||
|
Trading account assets |
12,551 |
185 |
5.91 |
14,392 |
246 |
6.84 |
13,067 |
215 |
6.59 |
||||||||||||||||||
|
Other earning assets(4) |
2,458,591 |
28,936 |
4.60 |
1,408,415 |
18,803 |
5.24 |
1,463,176 |
19,689 |
5.26 |
||||||||||||||||||
|
FHLB and Federal Reserve Bank stock |
166,125 |
2,211 |
5.32 |
170,977 |
2,113 |
4.94 |
187,015 |
3,536 |
7.56 |
||||||||||||||||||
|
Mortgage loans held for sale |
30,483 |
520 |
6.83 |
34,890 |
612 |
7.01 |
39,024 |
696 |
7.14 |
||||||||||||||||||
|
Other loans held for sale |
74,019 |
404 |
2.13 |
83,492 |
433 |
2.03 |
8,044 |
104 |
5.06 |
||||||||||||||||||
|
Total interest earning assets |
55,422,486 |
$ |
800,560 |
5.75 |
% |
54,558,394 |
$ |
811,900 |
5.92 |
% |
55,991,881 |
$ |
789,513 |
5.59 |
% |
||||||||||||
|
Cash and due from banks |
512,178 |
476,443 |
522,986 |
||||||||||||||||||||||||
|
Premises and equipment |
382,784 |
380,003 |
366,647 |
||||||||||||||||||||||||
|
Other real estate |
386 |
666 |
- |
||||||||||||||||||||||||
|
Cash surrender value of bank-owned life insurance |
1,135,952 |
1,128,877 |
1,108,766 |
||||||||||||||||||||||||
|
Other assets(5) |
2,720,830 |
2,639,241 |
1,173,785 |
||||||||||||||||||||||||
|
Total assets |
$ |
60,174,616 |
$ |
59,183,624 |
$ |
59,164,065 |
|||||||||||||||||||||
|
Liabilities and Shareholders' Equity |
|||||||||||||||||||||||||||
|
Interest-bearing liabilities: |
|||||||||||||||||||||||||||
|
Interest-bearing demand deposits |
$ |
11,298,352 |
$ |
67,470 |
2.38 |
% |
$ |
10,834,829 |
$ |
71,786 |
2.64 |
% |
$ |
10,422,286 |
$ |
58,588 |
2.23 |
% |
|||||||||
|
Money market accounts |
13,768,434 |
101,063 |
2.92 |
13,058,527 |
104,514 |
3.18 |
13,053,781 |
103,211 |
3.14 |
||||||||||||||||||
|
Savings deposits |
986,522 |
316 |
0.13 |
1,007,962 |
355 |
0.14 |
1,098,914 |
275 |
0.10 |
||||||||||||||||||
|
Time deposits |
8,251,686 |
85,426 |
4.12 |
8,437,861 |
93,052 |
4.39 |
7,198,229 |
75,462 |
4.16 |
||||||||||||||||||
|
Brokered deposits |
5,012,655 |
61,924 |
4.91 |
5,476,231 |
75,607 |
5.49 |
6,069,055 |
81,444 |
5.32 |
||||||||||||||||||
|
Federal funds purchased and securities sold under repurchase agreements |
113,681 |
322 |
1.11 |
94,629 |
369 |
1.53 |
93,854 |
350 |
1.46 |
||||||||||||||||||
|
Other short-term borrowings |
- |
- |
- |
2,209 |
29 |
5.20 |
2,672 |
51 |
7.50 |
||||||||||||||||||
|
Long-term debt |
1,613,246 |
27,616 |
6.84 |
1,385,836 |
24,055 |
6.93 |
1,922,661 |
31,702 |
6.55 |
||||||||||||||||||
|
Total interest-bearing liabilities |
41,044,576 |
$ |
344,137 |
3.34 |
% |
40,298,084 |
$ |
369,767 |
3.65 |
% |
39,861,452 |
$ |
351,083 |
3.49 |
% |
||||||||||||
|
Non-interest-bearing demand deposits |
11,783,834 |
11,665,661 |
12,744,275 |
||||||||||||||||||||||||
|
Other liabilities |
1,963,298 |
1,967,351 |
1,906,686 |
||||||||||||||||||||||||
|
Shareholders' equity |
5,382,908 |
5,252,528 |
4,651,652 |
||||||||||||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
60,174,616 |
$ |
59,183,624 |
$ |
59,164,065 |
|||||||||||||||||||||
|
Net interest income, taxable equivalent net interest margin(6) |
$ |
456,423 |
3.28 |
% |
$ |
442,133 |
3.22 |
% |
$ |
438,430 |
3.11 |
% |
|||||||||||||||
|
Less: taxable-equivalent adjustment |
1,430 |
1,393 |
1,216 |
||||||||||||||||||||||||
|
Net interest income |
$ |
454,993 |
$ |
440,740 |
$ |
437,214 |
|||||||||||||||||||||
|
(1) |
Average loans are shown net of deferred fees and costs. NPLs are included. Interest income includes fees as follows: Fourth Quarter 2024 - $13.7 million, Third Quarter 2024 - $12.7 million, and Fourth Quarter 2023 -$13.1 million. |
|
(2) |
Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans to a taxable-equivalent basis. |
|
(3) |
Securities are included on an amortized cost basis with yield and net interest margin calculated accordingly. |
|
(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 $(391.6) million, $(424.6) million, and $(1.89) billion for the Fourth Quarter 2024, Third Quarter 2024, and Fourth Quarter 2023, respectively. |
|
(6) |
The net interest margin is calculated by dividing annualized net interest income-TE by average total interest earning assets. |
|
Synovus |
||||||||||||||||||
|
LOANS OUTSTANDING BY TYPE |
||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||
|
(Dollars in thousands) |
||||||||||||||||||
|
Total Loans |
Total Loans |
Linked |
Total Loans |
Year/Year |
||||||||||||||
|
Loan Type |
December 31, 2024 |
September 30, 2024 |
% Change |
December 31, 2023 |
% Change |
|||||||||||||
|
Commercial, Financial, and Agricultural |
$ |
14,498,992 |
$ |
14,563,913 |
- |
% |
$ |
14,459,345 |
- |
% |
||||||||
|
Owner-Occupied |
7,832,137 |
8,100,084 |
(3 |
) |
8,139,148 |
(4 |
) |
|||||||||||
|
Total Commercial & Industrial |
22,331,129 |
22,663,997 |
(1 |
) |
22,598,493 |
(1 |
) |
|||||||||||
|
Multi-Family |
4,185,545 |
4,379,459 |
(4 |
) |
4,098,188 |
2 |
||||||||||||
|
Hotels |
1,769,384 |
1,738,068 |
2 |
1,803,102 |
(2 |
) |
||||||||||||
|
Office Buildings |
1,743,329 |
1,778,698 |
(2 |
) |
1,891,587 |
(8 |
) |
|||||||||||
|
Shopping Centers |
1,273,439 |
1,260,460 |
1 |
1,319,049 |
(3 |
) |
||||||||||||
|
Warehouses |
846,025 |
837,145 |
1 |
854,475 |
(1 |
) |
||||||||||||
|
Other Investment Property |
1,363,482 |
1,352,719 |
1 |
1,396,903 |
(2 |
) |
||||||||||||
|
Total Investment Properties |
11,181,204 |
11,346,549 |
(1 |
) |
11,363,304 |
(2 |
) |
|||||||||||
|
1-4 Family Construction |
212,226 |
190,705 |
11 |
194,481 |
9 |
|||||||||||||
|
1-4 Family Investment Mortgage |
333,692 |
337,425 |
(1 |
) |
404,021 |
(17 |
) |
|||||||||||
|
Total 1-4 Family Properties |
545,918 |
528,130 |
3 |
598,502 |
(9 |
) |
||||||||||||
|
Commercial Development |
55,467 |
48,948 |
13 |
73,022 |
(24 |
) |
||||||||||||
|
Residential Development |
77,581 |
67,525 |
15 |
79,961 |
(3 |
) |
||||||||||||
|
Land Acquisition |
154,449 |
186,332 |
(17 |
) |
201,969 |
(24 |
) |
|||||||||||
|
Land and Development |
287,497 |
302,805 |
(5 |
) |
354,952 |
(19 |
) |
|||||||||||
|
Total Commercial Real Estate |
12,014,619 |
12,177,484 |
(1 |
) |
12,316,758 |
(2 |
) |
|||||||||||
|
Consumer Mortgages |
5,288,776 |
5,323,443 |
(1 |
) |
5,411,723 |
(2 |
) |
|||||||||||
|
Home Equity Lines |
1,831,287 |
1,809,286 |
1 |
1,807,399 |
1 |
|||||||||||||
|
Credit Cards |
185,871 |
181,386 |
2 |
194,141 |
(4 |
) |
||||||||||||
|
Other Consumer Loans |
957,346 |
965,078 |
(1 |
) |
1,075,976 |
(11 |
) |
|||||||||||
|
Total Consumer |
8,263,280 |
8,279,193 |
- |
8,489,239 |
(3 |
) |
||||||||||||
|
Total |
$ |
42,609,028 |
$ |
43,120,674 |
(1 |
)% |
$ |
43,404,490 |
(2 |
)% |
||||||||
|
NON-PERFORMING LOANS COMPOSITION |
||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||
|
(Dollars in thousands) |
||||||||||||||||||
|
Total Non-performing Loans |
Total Non-performing Loans |
Linked |
Total Non-performing Loans |
Year/Year |
||||||||||||||
|
Loan Type |
December 31, 2024 |
September 30, 2024 |
% Change |
December 31, 2023 |
% Change |
|||||||||||||
|
Commercial, Financial, and Agricultural |
$ |
122,874 |
$ |
107,004 |
15 |
% |
$ |
89,870 |
37 |
% |
||||||||
|
Owner-Occupied |
34,380 |
48,390 |
(29 |
) |
91,370 |
(62 |
) |
|||||||||||
|
Total Commercial & Industrial |
157,254 |
155,394 |
1 |
181,240 |
(13 |
) |
||||||||||||
|
Multi-Family |
112 |
1,692 |
(93 |
) |
1,681 |
(93 |
) |
|||||||||||
|
Office Buildings |
72,430 |
78,281 |
(7 |
) |
35,338 |
105 |
||||||||||||
|
Shopping Centers |
515 |
523 |
(2 |
) |
641 |
(20 |
) |
|||||||||||
|
Warehouses |
153 |
163 |
(6 |
) |
196 |
(22 |
) |
|||||||||||
|
Other Investment Property |
820 |
1,612 |
(49 |
) |
1,914 |
(57 |
) |
|||||||||||
|
Total Investment Properties |
74,030 |
82,271 |
(10 |
) |
39,770 |
86 |
||||||||||||
|
1-4 Family Construction |
- |
311 |
(100 |
) |
- |
nm |
||||||||||||
|
1-4 Family Investment Mortgage |
2,385 |
2,533 |
(6 |
) |
3,056 |
(22 |
) |
|||||||||||
|
Total 1-4 Family Properties |
2,385 |
2,844 |
(16 |
) |
3,056 |
(22 |
) |
|||||||||||
|
Residential Development |
- |
268 |
(100 |
) |
267 |
(100 |
) |
|||||||||||
|
Land Acquisition |
1,389 |
1,422 |
(2 |
) |
537 |
159 |
||||||||||||
|
Land and Development |
1,389 |
1,690 |
(18 |
) |
804 |
73 |
||||||||||||
|
Total Commercial Real Estate |
77,804 |
86,805 |
(10 |
) |
43,630 |
78 |
||||||||||||
|
Consumer Mortgages |
50,834 |
48,956 |
4 |
46,108 |
10 |
|||||||||||||
|
Home Equity Lines |
17,365 |
15,837 |
10 |
10,473 |
66 |
|||||||||||||
|
Other Consumer Loans |
5,907 |
5,972 |
(1 |
) |
6,726 |
(12 |
) |
|||||||||||
|
Total Consumer |
74,106 |
70,765 |
5 |
63,307 |
17 |
|||||||||||||
|
Total |
$ |
309,164 |
$ |
312,964 |
(1 |
)% |
$ |
288,177 |
7 |
% |
|
Synovus |
|||||||||||||||||
|
CREDIT QUALITY DATA |
|||||||||||||||||
|
(Unaudited) |
|||||||||||||||||
|
(Dollars in thousands) |
2024 |
2023 |
Fourth Quarter |
||||||||||||||
|
Fourth |
Third |
Second |
First |
Fourth |
'24 vs '23 |
||||||||||||
|
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
% Change |
||||||||||||
|
Non-performing Loans (NPL) |
$ |
309,164 |
312,964 |
256,106 |
350,450 |
288,177 |
7 |
% |
|||||||||
|
Other Real Estate and Other Assets |
385 |
386 |
823 |
21,210 |
- |
NM |
|||||||||||
|
Non-performing Assets (NPAs) |
309,549 |
313,350 |
256,929 |
371,660 |
288,177 |
7 |
|||||||||||
|
Allowance for Loan Losses (ALL) |
486,845 |
484,985 |
485,101 |
492,661 |
479,385 |
2 |
|||||||||||
|
Reserve for Unfunded Commitments |
52,462 |
49,556 |
53,058 |
53,579 |
57,231 |
(8 |
) |
||||||||||
|
Allowance for Credit Losses (ACL) |
539,307 |
534,541 |
538,159 |
546,240 |
536,616 |
1 |
|||||||||||
|
Net Charge-Offs - Quarter |
28,101 |
27,052 |
34,485 |
44,356 |
41,574 |
||||||||||||
|
Net Charge-Offs - YTD |
133,994 |
105,893 |
78,841 |
44,356 |
153,342 |
||||||||||||
|
Net Charge-Offs / Average Loans - Quarter(1) |
0.26 |
% |
0.25 |
0.32 |
0.41 |
0.38 |
|||||||||||
|
Net Charge-Offs / Average Loans - YTD(1) |
0.31 |
0.33 |
0.36 |
0.41 |
0.35 |
||||||||||||
|
NPLs / Loans |
0.73 |
0.73 |
0.59 |
0.81 |
0.66 |
||||||||||||
|
NPAs / Loans, ORE and specific other assets |
0.73 |
0.73 |
0.60 |
0.86 |
0.66 |
||||||||||||
|
ACL/Loans |
1.27 |
1.24 |
1.25 |
1.26 |
1.24 |
||||||||||||
|
ALL/Loans |
1.14 |
1.12 |
1.13 |
1.14 |
1.10 |
||||||||||||
|
ACL/NPLs |
174.44 |
170.80 |
210.13 |
155.87 |
186.21 |
||||||||||||
|
ALL/NPLs |
157.47 |
154.96 |
189.41 |
140.58 |
166.35 |
||||||||||||
|
Past Due Loans over 90 days and Still Accruing |
$ |
48,592 |
4,359 |
4,460 |
3,748 |
5,053 |
NM |
||||||||||
|
As a Percentage of Loans Outstanding |
0.11 |
% |
0.01 |
0.01 |
0.01 |
0.01 |
|||||||||||
|
Total Past Due Loans and Still Accruing |
$ |
108,878 |
97,229 |
129,759 |
54,814 |
59,099 |
84 |
||||||||||
|
As a Percentage of Loans Outstanding |
0.26 |
% |
0.23 |
0.30 |
0.13 |
0.14 |
|||||||||||
|
(1) Ratio is annualized. |
|||||||||||||||||
|
SELECTED CAPITAL INFORMATION(1) |
|||||||||||||||||
|
(Unaudited) |
|||||||||||||||||
|
(Dollars in thousands) |
|||||||||||||||||
|
December 31, 2024 |
September 30, 2024 |
December 31, 2023 |
|||||||||||||||
|
Common Equity Tier 1 Capital Ratio |
10.84 |
% |
10.64 |
10.22 |
|||||||||||||
|
Tier 1 Capital Ratio |
11.96 |
11.76 |
11.28 |
||||||||||||||
|
Total Risk-Based Capital Ratio |
13.80 |
13.60 |
13.07 |
||||||||||||||
|
Tier 1 Leverage Ratio |
9.55 |
9.55 |
9.49 |
||||||||||||||
|
Total Synovus Financial Corp. shareholders' equity as a Percentage of Total Assets |
8.71 |
8.99 |
8.56 |
||||||||||||||
|
Tangible Common Equity Ratio(2) |
7.02 |
7.28 |
6.84 |
||||||||||||||
|
Book Value Per Common Share(3) |
$ |
33.35 |
33.94 |
31.24 |
|||||||||||||
|
Tangible Book Value Per Common Share(4) |
29.70 |
30.29 |
27.65 |
|
(1) |
Current quarter regulatory capital information is preliminary. |
|
(2) |
See "Non-GAAP Financial Measures" for applicable reconciliation. |
|
(3) |
Book Value Per Common Share consists of Total Synovus Financial Corp. shareholders' equity less Preferred Stock divided by total common shares outstanding. |
|
(4) |
Tangible Book Value Per Common Share consists of Total Synovus Financial Corp. shareholders' equity less Preferred Stock and less the carrying value of goodwill and other intangible assets divided by total common shares outstanding. |
Media Contact
Audria Belton
Media Relations
[email protected]
Investor Contact
Jennifer H. Demba, CFA
Investor Relations
[email protected]