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Synovus announces earnings for the fourth quarter 2023

Diluted earnings per share of $0.41 vs. $1.35 in 4Q22

Adjusted diluted earnings per share of $0.80 vs. $1.35 in 4Q22

$51 million FDIC special assessment reduced 4Q23 reported and adjusted EPS by $0.26

Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter and year ended Dec. 31, 2023. “Synovus' 2023 financial performance is a testament to our resilience and the strength of our business model,” said Synovus Chairman, CEO and President Kevin Blair. “Amid a challenging economic landscape in 2023, we broadened client relationships, further diversified our business mix, streamlined expenses and took strategic actions to optimize the balance sheet. Our strong banking footprint and ongoing investments in talent, capabilities, functionalities and new revenue sources fuel the bank’s path to solid growth. We persist in bolstering our core deposit generation, enriching lending diversification, enhancing expense efficiency and delivering world-class client service. As we execute our plan, we're confident momentum will build throughout 2024 and beyond for Synovus.”

2023 Highlights

  • Net income available to common shareholders for 2023 was $507.8 million, or $3.46 per diluted share, compared to $724.7 million, or $4.95 per diluted share in 2022. Adjusted EPS for 2023 was $4.12 per diluted share compared to $4.93 per diluted share in 2022.
  • The $51 million FDIC special assessment incurred during the fourth quarter 2023 reduced reported and adjusted EPS by $0.26.
  • Pre-provision net revenue was $885.2 million in 2023 compared to $1.05 billion in 2022.
  • Net interest income was $1.82 billion in 2023, up from $1.80 billion in the prior year, largely attributable to average loan growth and higher earning asset yields, which combined to more than offset rising funding costs.
  • During 2023, Synovus sold $422 million in third-party consumer loans and $1.2 billion in medical office building loans with the proceeds used to pay down wholesale borrowings.
  • Period-end loans declined $311.9 million, or 1%, in 2023 as commercial and industrial growth was more than offset by declines in commercial real estate and consumer loans.
  • Period-end deposits increased $1.87 billion, or 4%, primarily driven by growth in time deposits and interest-bearing demand deposits, partially offset by a decline in non-interest-bearing deposits. Brokered deposits increased $744.0 million, or 14%, in 2023.
  • During the fourth quarter 2023, Synovus repositioned its securities portfolio by selling $1.3 billion of bonds, which resulted in securities losses of $78 million. The proceeds have been reinvested in other high-quality liquid assets with better yields, which should augment 2024 net interest income by an estimated $28 million.
  • Non-interest revenue was $404.0 million, down 1% from 2022. Adjusted non-interest revenue of $460.7 million grew 11% in 2023, primarily attributable to fee income related to treasury and payment solutions, capital markets and wealth management, as well as fees from banking as a service.
  • Non-interest expense was $1.34 billion, up 15%, and adjusted non-interest expense increased 9% year over year in 2023 to $1.26 billion, but was significantly impacted by the $51 million FDIC special assessment.
  • Credit quality remains healthy. Net charge-offs were 0.35% of average loans or 0.28%, excluding the loan sales in the third quarter, compared to 0.13% in 2022. The provision for credit losses was $189.1 million in 2023 compared to a provision of $84.6 million for the prior year. The allowance for credit losses ended the year at 1.24% compared to 1.15% at the end of 2022.
  • The preliminary year-end CET1 ratio increased 59 basis points year over year to 10.22%, which is within our target operating range of 10.00% to 10.50%.

Fourth Quarter 2023 Highlights

  • Net income available to common shareholders was $60.6 million, or $0.41 per diluted share, down $0.19 sequentially and down $0.94 compared to the fourth quarter 2022.
  • The $51 million FDIC special assessment impacted fourth quarter 2023 reported and adjusted EPS by $0.26.
  • Pre-provision net revenue of $135.8 million declined $60.9 million, or 31%, sequentially and was down $159.0 million, or 54%, compared to the fourth quarter 2022.
  • Net interest income declined $5.9 million, or 1%, compared to the prior quarter and was down $64.1 million, or 13%, compared to the fourth quarter 2022, primarily attributable to a decline in average earnings assets and higher funding costs. Net interest margin was 3.11%, which was stable from the third quarter supported by rising asset yields, lower than expected core interest-bearing deposit cost and a decline in borrowings.
  • Period-end loans declined $275.4 million, or 1%, from the third quarter as core commercial lending growth was more than offset by softer overall loan production, higher loan paydowns and strategic declines in certain loan categories such as non-relationship syndicated lending and third-party consumer lending.
  • Core deposits increased $714.1 million, or 2%, sequentially. Total deposits ended the quarter at $50.74 billion, an increase of $535.3 million, or 1%, sequentially as a result of the focus on deposit production and seasonally higher commercial deposits and public funds.
  • Total deposit costs increased 19 basis points from the third quarter 2023 to 2.50%. The bank's total deposit beta cycle to date through the fourth quarter 2023 has been 45%.
  • Non-interest revenue of $51.5 million declined $55.7 million, or 52.0%, sequentially and decreased $51.0 million, or 50%, compared to the fourth quarter 2022. Non-interest revenue was impacted by $78 million in securities losses. Adjusted non-interest revenue of $126.2 million rose $19.9 million, or 19%, sequentially and increased $25.3 million, or 25%, compared to the fourth quarter 2022. The growth was primarily attributable to higher GreenSky income as well as stronger treasury and payment solutions and non-GLOBALT wealth management fees.
  • On a sequential quarter basis, non-interest expense of $352.9 million was flat while adjusted non-interest expense increased 15% to $353.1 million, and compared to the prior year, non-interest expense and adjusted non-interest expense were up 14% and 15%, respectively. All comparisons were significantly impacted by the $51 million FDIC special assessment. Headcount declined 2% sequentially and 5% year over year.
  • Credit quality ratios remain healthy. The non-performing loan and asset ratios were slightly higher at 0.66% and 0.66%, respectively; the net charge-off ratio for the quarter was 0.38%, and total past dues were 0.14% of total loans outstanding.
  • Provision for credit losses of $45.5 million declined $27.1 million sequentially and compares to $72.6 million in the third quarter of 2023.
  • The allowance for credit losses ratio (to loans) of 1.24% was up 2 basis points sequentially and up 9 basis points compared to the prior year. The quarter over quarter increase primarily reflects loan performance during the fourth quarter.
  • The preliminary CET1 ratio rose sequentially to 10.22% as core earnings accretion more than offset the impact of the $51 million FDIC special assessment and $78 million in securities losses during the fourth quarter.

Fourth Quarter 2023 Summary

 

Reported

 

Adjusted

(dollars in thousands)

 

4Q23

 

 

 

3Q23

 

 

 

4Q22

 

 

 

4Q23

 

 

 

3Q23

 

 

 

4Q22

 

Net income available to common shareholders

$

60,645

 

 

$

87,423

 

 

$

197,479

 

 

$

116,901

 

 

$

122,770

 

 

$

197,576

 

Diluted earnings per share

 

0.41

 

 

 

0.60

 

 

 

1.35

 

 

 

0.80

 

 

 

0.84

 

 

 

1.35

 

Total revenue

 

488,682

 

 

 

550,298

 

 

 

603,785

 

 

 

564,593

 

 

 

550,552

 

 

 

603,359

 

Total loans

 

43,404,490

 

 

 

43,679,910

 

 

 

43,716,353

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

Total deposits

 

50,739,185

 

 

 

50,203,890

 

 

 

48,871,559

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

Return on avg assets

 

0.47

%

 

 

0.64

%

 

 

1.38

%

 

 

0.84

%

 

 

0.87

%

 

 

1.39

%

Return on avg common equity

 

5.9

 

 

 

8.2

 

 

 

20.9

 

 

 

11.3

 

 

 

11.5

 

 

 

20.9

 

Return on avg tangible common equity

 

7.0

 

 

 

9.7

 

 

 

24.2

 

 

 

13.3

 

 

 

13.5

 

 

 

24.2

 

Net interest margin

 

3.11

%

 

 

3.11

%

 

 

3.56

%

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

Efficiency ratio-TE(1)(2)

 

72.03

 

 

 

64.11

 

 

 

51.08

 

 

 

61.97

 

 

 

55.01

 

 

 

50.58

 

NCO ratio-QTD

 

0.38

 

 

 

0.61

 

 

 

0.12

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

NPA ratio

 

0.66

 

 

 

0.64

 

 

 

0.33

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

(1) Taxable equivalent

(2) Adjusted tangible efficiency ratio

 

Balance Sheet

Loans*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

 

4Q23

 

 

3Q23

 

Linked

Quarter

Change

 

Linked

Quarter %

Change

 

 

4Q22

 

Year/Year

Change

 

Year/Year

% Change

Commercial & industrial

$

22,598.5

 

$

22,781.0

 

$

(182.5

)

 

(1

)%

 

$

22,066.7

 

$

531.8

 

 

2

%

Commercial real estate

 

12,316.8

 

 

12,394.9

 

 

(78.1

)

 

(1

)

 

 

12,650.3

 

 

(333.6

)

 

(3

)

Consumer

 

8,489.2

 

 

8,504.1

 

 

(14.9

)

 

 

 

 

8,999.4

 

 

(510.1

)

 

(6

)

Total loans

$

43,404.5

 

$

43,679.9

 

$

(275.4

)

 

(1

)%

 

$

43,716.4

 

$

(311.9

)

 

(1

)%

* Amounts may not total due to rounding

Deposits*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

 

4Q23

 

 

3Q23

 

Linked

Quarter

Change

 

Linked

Quarter %

Change

 

 

4Q22

 

Year/Year

Change

 

Year/Year

% Change

Non-interest-bearing DDA

$

11,801.2

 

$

12,395.1

 

$

(593.9

)

 

(5)%

 

 

$

14,574.5

 

$

(2,773.3

)

 

(19

)%

Interest-bearing DDA

 

6,541.0

 

 

6,276.1

 

 

264.9

 

 

4

 

 

 

5,761.4

 

 

779.6

 

 

14

 

Money market

 

10,819.7

 

 

10,786.3

 

 

33.5

 

 

 

 

 

12,480.7

 

 

(1,661.0

)

 

(13

)

Savings

 

1,062.6

 

 

1,132.5

 

 

(69.9

)

 

(6

)

 

 

1,396.4

 

 

(333.8

)

 

(24

)

Public funds

 

7,349.5

 

 

6,885.7

 

 

463.8

 

 

7

 

 

 

6,635.6

 

 

714.0

 

 

11

 

Time deposits

 

7,122.2

 

 

6,506.4

 

 

615.8

 

 

9

 

 

 

2,724.1

 

 

4,398.1

 

 

161

 

Brokered deposits

 

6,043.0

 

 

6,221.8

 

 

(178.8

)

 

(3

)

 

 

5,299.0

 

 

744.0

 

 

14

 

Total deposits

$

50,739.2

 

$

50,203.9

 

$

535.3

 

 

1

%

 

$

48,871.6

 

$

1,867.6

 

 

4

%

* Amounts may not total due to rounding

Income Statement Summary*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data)

 

4Q23

 

 

 

3Q23

 

 

Linked

Quarter

Change

 

Linked

Quarter %

Change

 

 

4Q22

 

 

Year/Year

Change

 

Year/Year

% Change

Net interest income

$

437,214

 

 

$

443,159

 

 

$

(5,945

)

 

(1

)%

 

$

501,346

 

 

$

(64,132

)

 

(13

)%

Non-interest revenue

 

51,468

 

 

 

107,139

 

 

 

(55,671

)

 

(52

)

 

 

102,439

 

 

 

(50,971

)

 

(50

)

Non-interest expense

 

352,858

 

 

 

353,532

 

 

 

(674

)

 

 

 

 

308,996

 

 

 

43,862

 

 

14

 

Provision for (reversal of) credit losses

 

45,472

 

 

 

72,572

 

 

 

(27,100

)

 

(37

)

 

 

34,884

 

 

 

10,588

 

 

30

 

Income before taxes

$

90,352

 

 

$

124,194

 

 

$

(33,842

)

 

(27

)%

 

$

259,905

 

 

$

(169,553

)

 

(65

)%

Income tax expense

 

20,779

 

 

 

27,729

 

 

 

(6,950

)

 

(25

)

 

 

54,135

 

 

 

(33,356

)

 

(62

)

Net income

 

69,573

 

 

 

96,465

 

 

 

(26,892

)

 

(28

)

 

 

205,770

 

 

 

(136,197

)

 

(66

)

Less: Net income (loss) attributable to noncontrolling interest

 

(768

)

 

 

(630

)

 

 

(138

)

 

22

 

 

 

 

 

 

(768

)

 

nm

Net income attributable to Synovus Financial Corp.

 

70,341

 

 

 

97,095

 

 

 

(26,754

)

 

(28

)

 

 

205,770

 

 

 

(135,429

)

 

(66

)

Less: Preferred stock dividends

 

9,696

 

 

 

9,672

 

 

 

24

 

 

 

 

 

8,291

 

 

 

1,405

 

 

17

 

Net income available to common shareholders

$

60,645

 

 

$

87,423

 

 

$

(26,778

)

 

(31

)%

 

$

197,479

 

 

$

(136,834

)

 

(69

)%

Weighted average common shares outstanding, diluted

 

146,877

 

 

 

146,740

 

 

 

137

 

 

 

 

 

146,528

 

 

 

349

 

 

 

Diluted earnings per share

$

0.41

 

 

$

0.60

 

 

$

(0.19

)

 

(32

)%

 

$

1.35

 

 

$

(0.94

)

 

(70

)%

Adjusted diluted earnings per share

$

0.80

 

 

$

0.84

 

 

$

(0.04

)

 

(5

)

 

$

1.35

 

 

$

(0.55

)

 

(41

) %

Effective tax rate

 

23.00

%

 

 

22.33

%

 

 

 

 

 

 

20.83

%

 

 

 

 

* Amounts may not total due to rounding

Capital Ratios

 

 

 

 

 

 

 

 

4Q23

 

3Q23

 

4Q22

Common equity Tier 1 capital (CET1) ratio

10.22

%

*

10.13

%

 

9.63

%

Tier 1 capital ratio

11.28

 

*

11.18

 

 

10.68

 

Total risk-based capital ratio

13.07

 

*

13.12

 

 

12.54

 

Tier 1 leverage ratio

9.49

 

*

9.38

 

 

9.07

 

Tangible common equity ratio

6.84

 

 

5.90

 

 

5.84

 

* Ratios are preliminary

 

Fourth Quarter 2023 Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. ET on Jan. 18, 2024. 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/events. 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 $60 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 246 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 X, formerly known as 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 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, 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 net income available to common shareholders; adjusted diluted earnings per share; adjusted non-interest revenue, adjusted non-interest expense; adjusted revenue; adjusted tangible efficiency ratio; 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; 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 are measures used by management to evaluate non-interest revenue and total revenue exclusive of 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. 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data)

 

4Q23

 

 

 

3Q23

 

 

 

4Q22

 

 

 

2023

 

 

 

2022

 

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

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

$

60,645

 

 

$

87,423

 

 

$

197,479

 

 

$

507,755

 

 

$

724,739

 

(Gain) on sale of GLOBALT

 

 

 

 

(1,929

)

 

 

 

 

 

(1,929

)

 

 

 

Restructuring charges (reversals)

 

1,231

 

 

 

17,319

 

 

 

(2,372

)

 

 

17,707

 

 

 

(9,690

)

Valuation adjustment to Visa derivative

 

 

 

 

900

 

 

 

2,500

 

 

 

3,927

 

 

 

6,000

 

(Gain) loss on early extinguishment of debt

 

(4,497

)

 

 

(526

)

 

 

 

 

 

(5,400

)

 

 

677

 

Recovery of NPA

 

 

 

 

 

 

 

 

 

 

(13,126

)

 

 

 

Loss on other loans held for sale

 

 

 

 

30,954

 

 

 

 

 

 

50,064

 

 

 

 

Investment securities (gains) losses, net

 

77,748

 

 

 

 

 

 

 

 

 

76,718

 

 

 

 

Tax effect of adjustments(1)

 

(18,226

)

 

 

(11,371

)

 

 

(31

)

 

 

(31,312

)

 

 

733

 

Adjusted net income available to common shareholders

$

116,901

 

 

$

122,770

 

 

$

197,576

 

 

$

604,404

 

 

$

722,459

 

Weighted average common shares outstanding, diluted

 

146,877

 

 

 

146,740

 

 

 

146,528

 

 

 

146,734

 

 

 

146,481

 

Net income per common share, diluted

$

0.41

 

 

$

0.60

 

 

$

1.35

 

 

$

3.46

 

 

$

4.95

 

Adjusted net income per common share, diluted

 

0.80

 

 

 

0.84

 

 

 

1.35

 

 

 

4.12

 

 

 

4.93

 

(1) An assumed marginal tax rate of 24.5% for 4Q23 and 2023 and 24.3% for 3Q23, 4Q22, and 2022 was applied.

 

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

4Q23

 

 

 

3Q23

 

 

 

4Q22

 

 

 

2023

 

 

 

2022

 

Adjusted non-interest revenue

 

 

 

 

 

 

 

 

 

Total non-interest revenue

$

51,468

 

 

$

107,139

 

 

$

102,439

 

 

$

404,010

 

 

$

409,336

 

(Gain) on sale of GLOBALT

 

 

 

 

(1,929

)

 

 

 

 

 

(1,929

)

 

 

 

Recovery of NPA

 

 

 

 

 

 

 

 

 

 

(13,126

)

 

 

 

Investment securities (gains) losses, net

 

77,748

 

 

 

 

 

 

 

 

 

76,718

 

 

 

 

Fair value adjustment on non-qualified deferred compensation

 

(3,053

)

 

 

1,035

 

 

 

(1,557

)

 

 

(4,987

)

 

 

4,054

 

Adjusted non-interest revenue

$

126,163

 

 

$

106,245

 

 

$

100,882

 

 

$

460,686

 

 

$

413,390

 

 

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense

 

 

 

 

 

 

 

 

 

Total non-interest expense

$

352,858

 

 

$

353,532

 

 

$

308,996

 

 

$

1,335,424

 

 

$

1,157,506

 

(Loss) gain on other loans held for sale

 

 

 

 

(30,954

)

 

 

 

 

 

(50,064

)

 

 

 

Restructuring (charges) reversals

 

(1,231

)

 

 

(17,319

)

 

 

2,372

 

 

 

(17,707

)

 

 

9,690

 

Valuation adjustment to Visa derivative

 

 

 

 

(900

)

 

 

(2,500

)

 

 

(3,927

)

 

 

(6,000

)

Gain (loss) on early extinguishment of debt

 

4,497

 

 

 

526

 

 

 

 

 

 

5,400

 

 

 

(677

)

Fair value adjustment on non-qualified deferred compensation

 

(3,053

)

 

 

1,035

 

 

 

(1,557

)

 

 

(4,987

)

 

 

4,054

 

Adjusted non-interest expense

$

353,071

 

 

$

305,920

 

 

$

307,311

 

 

$

1,264,139

 

 

$

1,164,573

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

4Q23

 

 

 

3Q23

 

 

 

4Q22

 

Adjusted revenue and tangible efficiency ratio

 

 

 

 

 

Adjusted non-interest expense

$

353,071

 

 

$

305,920

 

 

$

307,311

 

Amortization of intangibles

 

(3,168

)

 

 

(3,042

)

 

 

(2,118

)

Adjusted tangible non-interest expense

$

349,903

 

 

$

302,878

 

 

$

305,193

 

 

 

 

 

 

 

Net interest income

$

437,214

 

 

$

443,159

 

 

$

501,346

 

Total non-interest revenue

 

51,468

 

 

 

107,139

 

 

 

102,439

 

Total revenue

 

488,682

 

 

 

550,298

 

 

 

603,785

 

Tax equivalent adjustment

 

1,216

 

 

 

1,148

 

 

 

1,131

 

Total TE revenue

 

489,898

 

 

 

551,446

 

 

 

604,916

 

(Gain) on sale of GLOBALT

 

 

 

 

(1,929

)

 

 

 

Recovery of NPA

 

 

 

 

 

 

 

 

Investment securities (gains) losses, net

 

77,748

 

 

 

 

 

 

 

Fair value adjustment on non-qualified deferred compensation

 

(3,053

)

 

 

1,035

 

 

 

(1,557

)

Adjusted revenue

$

564,593

 

 

$

550,552

 

 

$

603,359

 

Efficiency ratio-TE

 

72.03

%

 

 

64.11

%

 

 

51.08

%

Adjusted tangible efficiency ratio

 

61.97

 

 

 

55.01

 

 

 

50.58

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

(in thousands, except per share data)

 

4Q23

 

 

 

3Q23

 

 

 

4Q22

 

Adjusted return on average assets (annualized)

 

 

 

 

 

Net income

$

69,573

 

 

$

96,465

 

 

$

205,770

 

Loss on other loans held for sale

 

 

 

 

30,954

 

 

 

 

Restructuring charges (reversals)

 

1,231

 

 

 

17,319

 

 

 

(2,372

)

(Gain) on sale of GLOBALT

 

 

 

 

(1,929

)

 

 

 

Valuation adjustment to Visa derivative

 

 

 

 

900

 

 

 

2,500

 

(Gain) on early extinguishment of debt

 

(4,497

)

 

 

(526

)

 

 

 

Investment securities (gains) losses, net

 

77,748

 

 

 

 

 

 

 

Tax effect of adjustments(1)

 

(18,226

)

 

 

(11,371

)

 

 

(31

)

Adjusted net income

$

125,829

 

 

$

131,812

 

 

$

205,867

 

Net income annualized

$

276,023

 

 

$

382,714

 

 

$

816,370

 

Adjusted net income annualized

$

499,213

 

 

$

522,950

 

 

$

816,755

 

Total average assets

$

59,164,065

 

 

$

59,916,679

 

 

$

58,963,417

 

Return on average assets (annualized)

 

0.47

%

 

 

0.64

%

 

 

1.38

%

Adjusted return on average assets (annualized)

 

0.84

 

 

 

0.87

 

 

 

1.39

 

(1) An assumed marginal tax rate of 24.5% for 4Q23 and 24.3% for both 3Q23 and 4Q22 was applied.

 

 

 

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

(dollars in thousands)

 

4Q23

 

 

 

3Q23

 

 

 

4Q22

 

 

 

 

 

 

 

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

$

60,645

 

 

$

87,423

 

 

$

197,479

 

Loss on other loans held for sale

 

 

 

 

30,954

 

 

 

 

Restructuring charges (reversals)

 

1,231

 

 

 

17,319

 

 

 

(2,372

)

(Gain) on sale of GLOBALT

 

 

 

 

(1,929

)

 

 

 

Valuation adjustment to Visa derivative

 

 

 

 

900

 

 

 

2,500

 

(Gain) on early extinguishment of debt

 

(4,497

)

 

 

(526

)

 

 

 

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

 

77,748

 

 

 

 

 

 

 

Subtract/add: Tax effect of adjustments(1)

 

(18,226

)

 

 

(11,371

)

 

 

(31

)

Adjusted net income available to common shareholders

$

116,901

 

 

$

122,770

 

 

$

197,576

 

 

 

 

 

 

 

Adjusted net income available to common shareholders annualized

$

463,792

 

 

$

487,077

 

 

$

783,861

 

Amortization of intangibles, tax effected, annualized

 

9,493

 

 

 

9,131

 

 

 

6,358

 

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

$

473,285

 

 

$

496,208

 

 

$

790,219

 

 

 

 

 

 

 

Net income available to common shareholders annualized

$

240,602

 

 

$

346,841

 

 

$

783,476

 

Amortization of intangibles, tax effected, annualized

 

9,493

 

 

 

9,131

 

 

 

6,358

 

Net income available to common shareholders excluding amortization of intangibles annualized

$

250,095

 

 

$

355,972

 

 

$

789,834

 

 

 

 

 

 

 

Total average Synovus Financial Corp. shareholders' equity less preferred stock

$

4,090,163

 

 

$

4,223,422

 

 

$

3,742,927

 

Average goodwill

 

(479,858

)

 

 

(476,408

)

 

 

(452,390

)

Average other intangible assets, net

 

(47,502

)

 

 

(59,016

)

 

 

(28,174

)

Total average Synovus Financial Corp. tangible shareholders' equity less preferred stock

$

3,562,803

 

 

$

3,687,998

 

 

$

3,262,363

 

Return on average common equity (annualized)

 

5.9

%

 

 

8.2

%

 

 

20.9

%

Adjusted return on average common equity (annualized)

 

11.3

 

 

 

11.5

 

 

 

20.9

 

Return on average tangible common equity (annualized)

 

7.0

 

 

 

9.7

 

 

 

24.2

 

Adjusted return on average tangible common equity (annualized)

 

13.3

 

 

 

13.5

 

 

 

24.2

 

(1) An assumed marginal tax rate of 24.5% for 4Q23 and 24.3% for both 3Q23 and 4Q22 was applied.

 

 

 

 

Reconciliation of Non-GAAP Financial Measures, continued

 

 

 

 

 

 

December 31,

 

September 30,

 

December 31,

(dollars in thousands)

 

2023

 

 

 

2023

 

 

 

2022

 

Tangible common equity ratio

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

59,809,534

 

 

$

59,342,930

 

 

$

59,731,378

 

Goodwill

 

(480,440

)

 

 

(479,851

)

 

 

(452,390

)

Other intangible assets, net

 

(45,928

)

 

 

(49,096

)

 

 

(27,124

)

Tangible assets

$

59,283,166

 

 

$

58,813,983

 

 

$

59,251,864

 

 

 

 

 

 

 

Total Synovus Financial Corp. shareholders' equity

$

5,119,993

 

 

$

4,536,958

 

 

$

4,475,801

 

Goodwill

 

(480,440

)

 

 

(479,851

)

 

 

(452,390

)

Other intangible assets, net

 

(45,928

)

 

 

(49,096

)

 

 

(27,124

)

Preferred stock, no par value

 

(537,145

)

 

 

(537,145

)

 

 

(537,145

)

Tangible common equity

$

4,056,480

 

 

$

3,470,866

 

 

$

3,459,142

 

Total Synovus Financial Corp. shareholders’ equity to total assets ratio

 

8.56

%

 

 

7.65

%

 

 

7.49

%

Tangible common equity ratio

 

6.84

 

 

 

5.90

 

 

 

5.84

 

 

 

 

 

 

 

 

 

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT DATA

 

 

 

 

(Unaudited)

 

Years Ended

 

 

(Dollars in thousands, except per share data)

 

December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

 

2022

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

3,050,358

 

 

$

2,075,787

 

 

47

%

 

Interest expense

 

 

1,233,703

 

 

 

278,887

 

 

342

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

1,816,655

 

 

 

1,796,900

 

 

1

 

 

Provision for (reversal of) credit losses

 

 

189,079

 

 

 

84,553

 

 

124

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for credit losses

 

 

1,627,576

 

 

 

1,712,347

 

 

(5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest revenue:

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

90,096

 

 

 

93,067

 

 

(3

)

 

Fiduciary and asset management fees

 

 

78,077

 

 

 

78,414

 

 

 

 

Card fees

 

 

72,357

 

 

 

61,833

 

 

17

 

 

Brokerage revenue

 

 

83,431

 

 

 

67,034

 

 

24

 

 

Mortgage banking income

 

 

15,157

 

 

 

17,476

 

 

(13

)

 

Capital markets income

 

 

32,181

 

 

 

26,702

 

 

21

 

 

Income from bank-owned life insurance

 

 

31,429

 

 

 

29,720

 

 

6

 

 

Investment securities gains (losses), net

 

 

(76,718

)

 

 

 

 

nm

 

 

Recovery of NPA

 

 

13,126

 

 

 

 

 

nm

 

 

Other non-interest revenue

 

 

64,874

 

 

 

35,090

 

 

85

 

 

 

 

 

 

 

 

 

 

 

Total non-interest revenue

 

 

404,010

 

 

 

409,336

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

Salaries and other personnel expense

 

 

728,378

 

 

 

681,710

 

 

7

 

 

Net occupancy, equipment, and software expense

 

 

179,581

 

 

 

174,730

 

 

3

 

 

Third-party processing and other services

 

 

86,649

 

 

 

88,617

 

 

(2

)

 

Professional fees

 

 

39,854

 

 

 

37,189

 

 

7

 

 

FDIC insurance and other regulatory fees

 

 

94,737

 

 

 

29,083

 

 

226

 

 

Restructuring charges (reversals)

 

 

17,707

 

 

 

(9,690

)

 

(283

)

 

Loss on other loans held for sale

 

 

50,064

 

 

 

 

 

nm

 

 

Other operating expenses

 

 

138,454

 

 

 

155,867

 

 

(11

)

 

 

 

 

 

 

 

 

 

 

Total non-interest expense

 

 

1,335,424

 

 

 

1,157,506

 

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

696,162

 

 

 

964,177

 

 

(28

)

 

Income tax expense

 

 

154,021

 

 

 

206,275

 

 

(25

)

 

 

 

 

 

 

 

 

 

 

Net income

 

 

542,141

 

 

 

757,902

 

 

(28

)

 

 

 

 

 

 

 

 

 

 

Less: Net income (loss) attributable to noncontrolling interest

 

 

(1,564

)

 

 

 

 

nm

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Synovus Financial Corp.

 

 

543,705

 

 

 

757,902

 

 

(28

)

 

 

 

 

 

 

 

 

 

 

Less: Preferred stock dividends

 

 

35,950

 

 

 

33,163

 

 

8

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

507,755

 

 

$

724,739

 

 

(30

)%

 

 

 

 

 

 

 

 

 

 

Net income per common share, basic

 

 

3.48

 

 

 

4.99

 

 

(30

)%

 

 

 

 

 

 

 

 

 

 

Net income per common share, diluted

 

 

3.46

 

 

 

4.95

 

 

(30

)

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

 

1.52

 

 

 

1.36

 

 

12

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.90

%

 

 

1.32

%

 

(42)

bps 

 

Return on average common equity

 

 

12.17

 

 

 

17.41

 

 

(524

)

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

 

146,115

 

 

 

145,364

 

 

1

%

 

Weighted average common shares outstanding, diluted

 

 

146,734

 

 

 

146,481

 

 

 

 

 

 

 

 

 

 

 

 

 

nm - not meaningful

 

 

 

 

 

 

 

 

bps - basis points

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

2023

 

2022

 

Fourth

Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth

Quarter

 

Third

Quarter

 

Second

Quarter

 

First

Quarter

 

Fourth

Quarter

 

23 vs '22

 

 

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

788,297

 

 

786,039

 

 

759,143

 

 

716,879

 

 

654,654

 

 

20

%

 

Interest expense

 

351,083

 

 

342,880

 

 

303,612

 

 

236,128

 

 

153,308

 

 

129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

437,214

 

 

443,159

 

 

455,531

 

 

480,751

 

 

501,346

 

 

(13

)

 

Provision for (reversal of) credit losses

 

45,472

 

 

72,572

 

 

38,881

 

 

32,154

 

 

34,884

 

 

30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for credit losses

 

391,742

 

 

370,587

 

 

416,650

 

 

448,597

 

 

466,462

 

 

(16

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

22,260

 

 

21,385

 

 

23,477

 

 

22,974

 

 

23,639

 

 

(6

)

 

Fiduciary and asset management fees

 

18,149

 

 

20,205

 

 

20,027

 

 

19,696

 

 

18,836

 

 

(4

)

 

Card fees

 

20,872

 

 

18,602

 

 

17,059

 

 

15,824

 

 

15,887

 

 

31

 

 

Brokerage revenue

 

19,727

 

 

20,237

 

 

20,908

 

 

22,558

 

 

19,996

 

 

(1

)

 

Mortgage banking income

 

3,019

 

 

3,671

 

 

4,609

 

 

3,858

 

 

2,554

 

 

18

 

 

Capital markets income

 

5,104

 

 

6,377

 

 

6,975

 

 

13,725

 

 

6,998

 

 

(27

)

 

Income from bank-owned life insurance

 

10,324

 

 

6,965

 

 

6,878

 

 

7,262

 

 

7,206

 

 

43

 

 

Investment securities gains (losses), net

 

(77,748

)

 

 

 

 

 

1,030

 

 

 

 

nm

 

 

Recovery of NPA

 

 

 

 

 

 

 

13,126

 

 

 

 

nm

 

 

Other non-interest revenue

 

29,761

 

 

9,697

 

 

12,343

 

 

13,073

 

 

7,323

 

 

306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest revenue

 

51,468

 

 

107,139

 

 

112,276

 

 

133,126

 

 

102,439

 

 

(50

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and other personnel expense

 

176,712

 

 

179,741

 

 

183,001

 

 

188,924

 

 

182,629

 

 

(3

)

 

Net occupancy, equipment, and software expense

 

48,146

 

 

45,790

 

 

42,785

 

 

42,860

 

 

45,192

 

 

7

 

 

Third-party processing and other services

 

21,717

 

 

21,439

 

 

21,659

 

 

21,833

 

 

23,130

 

 

(6

)

 

Professional fees

 

11,147

 

 

10,147

 

 

9,597

 

 

8,963

 

 

11,096

 

 

 

 

FDIC insurance and other regulatory fees

 

61,470

 

 

11,837

 

 

11,162

 

 

10,268

 

 

8,232

 

 

647

 

 

Restructuring charges (reversals)

 

1,231

 

 

17,319

 

 

(110

)

 

(733

)

 

(2,372

)

 

(152

)

 

Loss on other loans held for sale

 

 

 

30,954

 

 

2,360

 

 

16,750

 

 

 

 

nm

 

 

Other operating expenses

 

32,435

 

 

36,305

 

 

36,727

 

 

32,987

 

 

41,089

 

 

(21

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest expense

 

352,858

 

 

353,532

 

 

307,181

 

 

321,852

 

 

308,996

 

 

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

90,352

 

 

124,194

 

 

221,745

 

 

259,871

 

 

259,905

 

 

(65

)

 

Income tax expense

 

20,779

 

 

27,729

 

 

47,801

 

 

57,712

 

 

54,135

 

 

(62

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

69,573

 

 

96,465

 

 

173,944

 

 

202,159

 

 

205,770

 

 

(66

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Net income (loss) attributable to noncontrolling

 

(768

)

 

(630

)

 

(166

)

 

 

 

 

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Synovus Financial Corp.

 

70,341

 

 

97,095

 

 

174,110

 

 

202,159

 

 

205,770

 

 

(66

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Preferred stock dividends

 

9,696

 

 

9,672

 

 

8,291

 

 

8,291

 

 

8,291

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

$

60,645

 

 

87,423

 

 

165,819

 

 

193,868

 

 

197,479

 

 

(69

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, basic

$

0.41

 

 

0.60

 

 

1.13

 

 

1.33

 

 

1.36

 

 

(69

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, diluted

 

0.41

 

 

0.60

 

 

1.13

 

 

1.32

 

 

1.35

 

 

(69

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

0.38

 

 

0.38

 

 

0.38

 

 

0.38

 

 

0.34

 

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets *

 

0.47

%

 

0.64

 

 

1.15

 

 

1.36

 

 

1.38

 

 

(91)

bps

 

Return on average common equity *

 

5.88

 

 

8.21

 

 

15.45

 

 

19.23

 

 

20.93

 

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

146,372

 

 

146,170

 

 

146,113

 

 

145,799

 

 

145,467

 

 

1

%

 

Weighted average common shares outstanding, diluted

 

146,877

 

 

146,740

 

 

146,550

 

 

146,727

 

 

146,528

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

nm - not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

bps - basis points

 

 

 

 

 

 

 

 

 

 

 

 

 

* - ratios are annualized

 

 

 

 

 

 

 

 

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET DATA

 

December 31, 2023

 

September 30, 2023

 

December 31, 2022

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Cash and due from banks

 

$

601,188

 

 

$

604,631

 

 

$

624,097

 

 

Interest-bearing funds with Federal Reserve Bank

 

 

1,741,059

 

 

 

1,431,356

 

 

 

1,280,684

 

 

Interest earning deposits with banks

 

 

71,856

 

 

 

65,468

 

 

 

34,632

 

 

Federal funds sold and securities purchased under resale agreements

 

 

37,323

 

 

 

36,176

 

 

 

38,367

 

 

Cash and cash equivalents

 

 

2,451,426

 

 

 

2,137,631

 

 

 

1,977,780

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale, at fair value

 

 

9,788,662

 

 

 

9,237,191

 

 

 

9,678,103

 

 

Loans held for sale ($47,338, $48,994 and $51,136 measured at fair value,

respectively)

 

 

52,768

 

 

 

66,558

 

 

 

391,502

 

 

 

 

 

 

 

 

 

 

Loans, net of deferred fees and costs

 

 

43,404,490

 

 

 

43,679,910

 

 

 

43,716,353

 

 

Allowance for loan losses

 

 

(479,385

)

 

 

(477,532

)

 

 

(443,424

)

 

Loans, net

 

 

42,925,105

 

 

 

43,202,378

 

 

 

43,272,929

 

 

 

 

 

 

 

 

 

 

Cash surrender value of bank-owned life insurance

 

 

1,112,030

 

 

 

1,107,092

 

 

 

1,089,280

 

 

Premises, equipment, and software, net

 

 

365,851

 

 

 

364,054

 

 

 

370,632

 

 

Goodwill

 

 

480,440

 

 

 

479,851

 

 

 

452,390

 

 

Other intangible assets, net

 

 

45,928

 

 

 

49,096

 

 

 

27,124

 

 

Other assets

 

 

2,587,324

 

 

 

2,699,079

 

 

 

2,471,638

 

 

Total assets

 

$

59,809,534

 

 

$

59,342,930

 

 

$

59,731,378

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

$

12,507,616

 

 

$

12,976,574

 

 

$

15,639,899

 

 

Interest-bearing deposits

 

 

38,231,569

 

 

 

37,227,316

 

 

 

33,231,660

 

 

 

 

 

 

 

 

 

 

Total deposits

 

 

50,739,185

 

 

 

50,203,890

 

 

 

48,871,559

 

 

 

 

 

 

 

 

 

 

Federal funds purchased and securities sold under repurchase agreements

 

 

189,074

 

 

 

98,270

 

 

 

146,588

 

 

Other short-term borrowings

 

 

3,496

 

 

 

2,362

 

 

 

603,384

 

 

Long-term debt

 

 

1,932,534

 

 

 

2,704,701

 

 

 

4,109,597

 

 

Other liabilities

 

 

1,801,097

 

 

 

1,772,139

 

 

 

1,524,449

 

 

Total liabilities

 

 

54,665,386

 

 

 

54,781,362

 

 

 

55,255,577

 

 

 

 

 

 

 

 

 

 

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 171,360,188, 170,859,506, and 170,141,492 respectively; outstanding 146,705,330, 146,204,648, and 145,486,634 respectively

 

 

171,360

 

 

 

170,860

 

 

 

170,141

 

 

Additional paid-in capital

 

 

3,955,819

 

 

 

3,940,507

 

 

 

3,920,346

 

 

Treasury stock, at cost – 24,654,858 shares

 

 

(944,484

)

 

 

(944,484

)

 

 

(944,484

)

 

Accumulated other comprehensive income (loss), net

 

 

(1,117,073

)

 

 

(1,679,404

)

 

 

(1,442,117

)

 

Retained earnings

 

 

2,517,226

 

 

 

2,512,334

 

 

 

2,234,770

 

 

Total Synovus Financial Corp. shareholders' equity

 

 

5,119,993

 

 

 

4,536,958

 

 

 

4,475,801

 

 

Noncontrolling interest in subsidiary

 

 

24,155

 

 

 

24,610

 

 

 

 

 

Total equity

 

 

5,144,148

 

 

 

4,561,568

 

 

 

4,475,801

 

 

Total liabilities and shareholders' equity

 

$

59,809,534

 

 

$

59,342,930

 

 

$

59,731,378

 

Synovus

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES, INTEREST, AND YIELDS/RATES

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

2022

(dollars in thousands)

Average

Balance

 

Interest

 

Yield/

Rate

 

Average

Balance

 

Interest

 

Yield/

Rate

Assets

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

Commercial loans (1) (2) (3)

$

35,188,678

 

 

$

2,263,117

 

6.43

%

 

$

32,402,218

 

 

$

1,448,463

 

4.47

%

Consumer loans (1) (2)

 

8,557,650

 

 

 

426,266

 

4.98

 

 

 

8,823,424

 

 

 

361,524

 

4.10

 

Less: Allowance for loan losses

 

(463,493

)

 

 

 

 

 

 

(421,506

)

 

 

 

 

Loans, net

 

43,282,835

 

 

 

2,689,383

 

6.21

 

 

 

40,804,136

 

 

 

1,809,987

 

4.44

 

Investment securities available for sale

 

11,212,956

 

 

 

248,294

 

2.21

 

 

 

11,208,886

 

 

 

209,951

 

1.87

 

Trading account assets

 

15,486

 

 

 

886

 

5.72

 

 

 

13,374

 

 

 

261

 

1.95

 

Other earning assets(4)

 

1,414,586

 

 

 

71,349

 

4.98

 

 

 

1,220,653

 

 

 

18,756

 

1.52

 

FHLB and Federal Reserve Bank stock

 

254,420

 

 

 

14,975

 

5.89

 

 

 

214,289

 

 

 

6,722

 

3.14

 

Mortgage loans held for sale

 

46,035

 

 

 

2,993

 

6.50

 

 

 

75,325

 

 

 

3,353

 

4.45

 

Other loans held for sale

 

469,689

 

 

 

27,099

 

5.69

 

 

 

682,961

 

 

 

30,684

 

4.43

 

Total interest earning assets

 

56,696,007

 

 

$

3,054,979

 

5.39

%

 

 

54,219,624

 

 

$

2,079,714

 

3.84

%

Cash and due from banks

 

575,370

 

 

 

 

 

 

 

574,250

 

 

 

 

 

Premises and equipment

 

367,159

 

 

 

 

 

 

 

385,622

 

 

 

 

 

Other real estate

 

 

 

 

 

 

 

 

6,356

 

 

 

 

 

Cash surrender value of bank-owned life insurance

 

1,099,641

 

 

 

 

 

 

 

1,078,653

 

 

 

 

 

Other assets(5)

 

1,183,691

 

 

 

 

 

 

 

1,345,568

 

 

 

 

 

Total assets

$

59,921,868

 

 

 

 

 

 

$

57,610,073

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$

9,884,039

 

 

$

176,595

 

1.79

%

 

$

9,027,636

 

 

$

25,912

 

0.29

%

Money market accounts

 

13,511,442

 

 

 

356,562

 

2.64

 

 

 

15,385,765

 

 

 

79,567

 

0.52

 

Savings deposits

 

1,229,975

 

 

 

1,046

 

0.09

 

 

 

1,481,372

 

 

 

399

 

0.03

 

Time deposits

 

5,473,405

 

 

 

196,481

 

3.59

 

 

 

2,667,101

 

 

 

13,902

 

0.52

 

Brokered deposits

 

6,104,461

 

 

 

296,071

 

4.85

 

 

 

3,644,957

 

 

 

67,452

 

1.85

 

Federal funds purchased and securities sold under repurchase agreements

 

97,114

 

 

 

1,667

 

1.69

 

 

 

205,753

 

 

 

1,308

 

0.63

 

Other short-term borrowings

 

528,194

 

 

 

24,611

 

4.60

 

 

 

466,254

 

 

 

10,945

 

2.32

 

Long-term debt

 

3,027,746

 

 

 

180,670

 

5.92

 

 

 

1,999,595

 

 

 

79,402

 

3.95

 

Total interest-bearing liabilities

 

39,856,376

 

 

$

1,233,703

 

3.10

%

 

 

34,878,433

 

 

$

278,887

 

0.80

%

Non-interest-bearing demand deposits

 

13,662,660

 

 

 

 

 

 

 

16,731,967

 

 

 

 

 

Other liabilities

 

1,671,489

 

 

 

 

 

 

 

1,298,972

 

 

 

 

 

Shareholders' equity

 

4,731,343

 

 

 

 

 

 

 

4,700,701

 

 

 

 

 

Total liabilities and shareholders' equity

$

59,921,868

 

 

 

 

 

 

$

57,610,073

 

 

 

 

 

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

 

 

$

1,821,276

 

3.21

%

 

��

 

$

1,800,827

 

3.32

%

Less: taxable-equivalent adjustment

 

 

 

4,621

 

 

 

 

 

 

3,927

 

 

Net interest income

 

 

$

1,816,655

 

 

 

 

 

$

1,796,900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

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

(2)

Interest income includes net loan fees as follows: 2023 — $47.7 million and 2022 — $57.3 million.

(3)

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

(4)

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

(5)

Includes average net unrealized gains/(losses) on investment securities available for sale of $(1.62) billion and $(985.6) million for the years ended December 31, 2023 and 2022, respectively.

(6)

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

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES, INTEREST, AND YIELDS/RATES

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter 2023

 

Third Quarter 2023

 

Fourth 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)

$

35,106,156

 

 

$

590,588

 

6.67

%

 

$

34,990,459

 

 

$

579,177

 

6.57

%

 

$

34,103,384

 

 

$

474,439

 

5.52

%

Consumer loans (1) (2)

 

8,491,244

 

 

 

109,509

 

5.14

 

 

 

8,509,757

 

 

 

108,065

 

5.06

 

 

 

9,041,520

 

 

 

101,905

 

4.50

 

Less: Allowance for loan losses

 

(480,332

)

 

 

 

 

 

 

(461,385

)

 

 

 

 

 

 

(427,525

)

 

 

 

 

Loans, net

 

43,117,068

 

 

 

700,097

 

6.45

 

 

 

43,038,831

 

 

 

687,242

 

6.34

 

 

 

42,717,379

 

 

 

576,344

 

5.36

 

Investment securities available for sale

 

11,164,487

 

 

 

65,176

 

2.33

 

 

 

11,194,291

 

 

 

61,642

 

2.20

 

 

 

11,296,449

 

 

 

58,840

 

2.08

 

Trading account assets

 

13,067

 

 

 

215

 

6.59

 

 

 

16,186

 

 

 

237

 

5.86

 

 

 

15,552

 

 

 

68

 

1.75

 

Other earning assets(4)

 

1,463,176

 

 

 

19,689

 

5.26

 

 

 

1,237,445

 

 

 

16,369

 

5.17

 

 

 

1,148,099

 

 

 

10,490

 

3.58

 

FHLB and Federal Reserve Bank stock

 

187,015

 

 

 

3,536

 

7.56

 

 

 

244,906

 

 

 

3,783

 

6.18

 

 

 

270,822

 

 

 

2,805

 

4.14

 

Mortgage loans held for sale

 

39,024

 

 

 

696

 

7.14

 

 

 

53,904

 

 

 

879

 

6.52

 

 

 

46,240

 

 

 

688

 

5.95

 

Other loans held for sale

 

8,044

 

 

 

104

 

5.06

 

 

 

881,067

 

 

 

17,035

 

7.57

 

 

 

514,811

 

 

 

6,550

 

4.98

 

Total interest earning assets

 

55,991,881

 

 

$

789,513

 

5.59

%

 

 

56,666,630

 

 

$

787,187

 

5.51

%

 

 

56,009,352

 

 

$

655,785

 

4.65

%

Cash and due from banks

 

522,986

 

 

 

 

 

 

 

509,511

 

 

 

 

 

 

 

651,189

 

 

 

 

 

Premises and equipment

 

366,647

 

 

 

 

 

 

 

365,568

 

 

 

 

 

 

 

375,352

 

 

 

 

 

Other real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash surrender value of bank-owned life insurance

 

1,108,766

 

 

 

 

 

 

 

1,102,626

 

 

 

 

 

 

 

1,085,394

 

 

 

 

 

Other assets(5)

 

1,173,785

 

 

 

 

 

 

 

1,272,344

 

 

 

 

 

 

 

842,130

 

 

 

 

 

Total assets

$

59,164,065

 

 

 

 

 

 

$

59,916,679

 

 

 

 

 

 

$

58,963,417

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$

10,422,286

 

 

$

58,588

 

2.23

%

 

$

10,114,171

 

 

$

52,983

 

2.08

%

 

$

8,627,386

 

 

$

14,160

 

0.65

%

Money market accounts

 

13,053,781

 

 

 

103,211

 

3.14

 

 

 

13,147,465

 

 

 

95,339

 

2.88

 

 

 

14,771,308

 

 

 

46,671

 

1.25

 

Savings deposits

 

1,098,914

 

 

 

275

 

0.10

 

 

 

1,178,322

 

 

 

280

 

0.09

 

 

 

1,450,153

 

 

 

176

 

0.05

 

Time deposits

 

7,198,229

 

 

 

75,462

 

4.16

 

 

 

6,180,584

 

 

 

59,972

 

3.85

 

 

 

2,567,979

 

 

 

7,648

 

1.18

 

Brokered deposits

 

6,069,055

 

 

 

81,444

 

5.32

 

 

 

6,442,690

 

 

 

83,486

 

5.14

 

 

 

4,986,542

 

 

 

39,500

 

3.14

 

Federal funds purchased and securities sold under repurchase agreements

 

93,854

 

 

 

350

 

1.46

 

 

 

73,344

 

 

 

296

 

1.58

 

 

 

141,707

 

 

 

437

 

1.21

 

Other short-term borrowings

 

2,672

 

 

 

51

 

7.50

 

 

 

1,722

 

 

 

 

 

 

 

660,295

 

 

 

6,383

 

3.78

 

Long-term debt

 

1,922,661

 

 

 

31,702

 

6.55

 

 

 

3,230,374

 

 

 

50,524

 

6.18

 

 

 

3,446,306

 

 

 

38,333

 

4.39

 

Total interest-bearing liabilities

 

39,861,452

 

 

$

351,083

 

3.49

%

 

 

40,368,672

 

 

$

342,880

 

3.37

%

 

 

36,651,676

 

 

$

153,308

 

1.66

%

Non-interest-bearing demand deposits

 

12,744,275

 

 

 

 

 

 

 

13,049,343

 

 

 

 

 

 

 

16,569,275

 

 

 

 

 

Other liabilities

 

1,906,686

 

 

 

 

 

 

 

1,713,131

 

 

 

 

 

 

 

1,462,394

 

 

 

 

 

Shareholders' equity

 

4,651,652

 

 

 

 

 

 

 

4,785,533

 

 

 

 

 

 

 

4,280,072

 

 

 

 

 

Total liabilities and shareholders' equity

$

59,164,065

 

 

 

 

 

 

$

59,916,679

 

 

 

 

 

 

$

58,963,417

 

 

 

 

 

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

 

 

$

438,430

 

3.11

%

 

 

 

$

444,307

 

3.11

%

 

 

 

$

502,477

 

3.56

%

Less: taxable-equivalent adjustment

 

 

 

1,216

 

 

 

 

 

 

1,148

 

 

 

 

 

 

1,131

 

 

Net interest income

 

 

$

437,214

 

 

 

 

 

$

443,159

 

 

 

 

 

$

501,346

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

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

(2)

Interest income includes net loan fees as follows: Fourth Quarter 2023 — $13.1 million, Third Quarter 2023 — $11.8 million, and Fourth Quarter 2022 —$11.9 million.

(3)

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

(4)

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

(5)

Includes average net unrealized gains/(losses) on investment securities available for sale of $(1.89) billion, $(1.60) billion, and $(1.69) billion for the Fourth Quarter 2023, Third Quarter 2023, and Fourth Quarter 2022, respectively.

(6)

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

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

LOANS OUTSTANDING BY TYPE

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans

 

Total Loans

 

Linked Quarter

 

Total Loans

 

Year/Year

Loan Type

 

December 31, 2023

 

September 30, 2023

 

% Change

 

December 31, 2022

 

% Change

Commercial, Financial, and Agricultural

 

$

14,459,345

 

$

14,498,966

 

%

 

$

13,874,416

 

4

%

Owner-Occupied

 

 

8,139,148

 

 

8,281,988

 

(2

)

 

 

8,192,240

 

(1

)

Total Commercial & Industrial

 

 

22,598,493

 

 

22,780,954

 

(1

)

 

 

22,066,656

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi-Family

 

 

4,098,188

 

 

3,930,617

 

4

 

 

 

3,134,571

 

31

 

Hotels

 

 

1,803,102

 

 

1,790,094

 

1

 

 

 

1,708,194

 

6

 

Office Buildings

 

 

1,891,587

 

 

1,911,095

 

(1

)

 

 

3,011,911

 

(37

)

Shopping Centers

 

 

1,319,049

 

 

1,327,770

 

(1

)

 

 

1,403,928

 

(6

)

Warehouses

 

 

854,475

 

 

985,723

 

(13

)

 

 

1,035,152

 

(17

)

Other Investment Property

 

 

1,396,903

 

 

1,432,456

 

(2

)

 

 

1,350,291

 

3

 

Total Investment Properties

 

 

11,363,304

 

 

11,377,755

 

 

 

 

11,644,047

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 Family Construction

 

 

194,481

 

 

224,091

 

(13

)

 

 

229,263

 

(15

)

1-4 Family Investment Mortgage

 

 

404,021

 

 

396,813

 

2

 

 

 

387,670

 

4

 

Total 1-4 Family Properties

 

 

598,502

 

 

620,904

 

(4

)

 

 

616,933

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Development

 

 

73,022

 

 

64,212

 

14

 

 

 

79,889

 

(9

)

Residential Development

 

 

79,961

 

 

92,209

 

(13

)