SYNOVUS FINANCIAL CORP - FORM 8-K - EX-99.2

Attached files

file	filename
8-K - 8-K - SYNOVUS FINANCIAL CORP	syn-20210126.htm
EX-99.3 - EX-99.3 - SYNOVUS FINANCIAL CORP	finalsynovus4q20earnings.htm
EX-99.1 - EX-99.1 - SYNOVUS FINANCIAL CORP	snv_ex991x12312020newsrele.htm


Synovus								Exhibit 99.2

	INCOME STATEMENT DATA
	(Unaudited)	Years Ended
	(Dollars in thousands, except per share data)	December 31,


		2020			2019			% Change


	Interest income	$	1,804,495		$	2,050,638		(12)	%
	Interest expense	291,747			454,835			(36)


	Net interest income	1,512,748			1,595,803			(5)
	Provision for credit losses	355,022			87,720			305

	Net interest income after provision for credit losses	1,157,726			1,508,083			(23)


	Non-interest revenue:
	Service charges on deposit accounts	73,132			88,190			(17)
	Fiduciary and asset management fees	63,251			58,388			8
	Card fees	42,702			45,659			(6)
	Brokerage revenue	44,781			41,608			8
	Mortgage banking income	91,413			32,599			180
	Capital markets income	27,336			30,529			(10)
	Income from bank-owned life insurance	31,297			21,226			47
	Investment securities gains (losses), net	78,931			(7,659)			nm
	Gain on sale and fair value increase, net of private equity investments	4,775			11,607			nm
	Other non-interest revenue	48,895			33,753			45

	Total non-interest revenue	506,513			355,900			42



	Non-interest expense:
	Salaries and other personnel expense	618,214			570,036			8
	Net occupancy, equipment, and software expense	169,658			161,906			5
	Third-party processing and other services	83,034			75,696			10
	Professional fees	56,899			35,300			61
	FDIC insurance and other regulatory fees	25,210			31,696			(20)
	Amortization of intangibles	10,560			11,603			(9)
	Goodwill impairment	44,877			—			nm
	Restructuring charges	26,991			1,230			nm
	Loss on early extinguishment of debt	10,466			4,592			nm
	Earnout liability adjustments	4,908			10,457			nm
	Merger-related expense	—			56,580			nm
	Other operating expenses	128,757			139,872			(8)

	Total non-interest expense	1,179,574			1,098,968			7



	Income before income taxes	484,665			765,015			(37)
	Income tax expense	110,970			201,235			(45)

	Net income	373,695			563,780			(34)

	Less: Preferred stock dividends	33,163			22,881			45

	Net income available to common shareholders	$	340,532		$	540,899		(37)	%

	Net income per common share, basic	2.31			3.50			(34)	%

	Net income per common share, diluted	2.30			3.47			(34)

	Cash dividends declared per common share	1.32			1.20			10

	Return on average assets*	0.72		%	1.20		%	(48)	bps
	Return on average common equity*	7.51			12.34			(483)

	Weighted average common shares outstanding, basic	147,415			154,331			(4)	%
	Weighted average common shares outstanding, diluted	148,210			156,058			(5)

	nm - not meaningful
	bps - basis points
	* - ratios are annualized


Synovus

	INCOME STATEMENT DATA
	(Unaudited)

	(Dollars in thousands, except per share data)	2020						2019	Fourth Quarter

		Fourth Quarter			Third Quarter	Second Quarter	First Quarter	Fourth Quarter	'20 vs '19
									% Change

	Interest income	$	433,479		435,550	451,569	483,897	506,253	(14)	%
	Interest expense	47,547			58,560	75,003	110,637	106,985	(56)


	Net interest income	385,932			376,990	376,566	373,260	399,268	(3)
	Provision for credit losses	11,066			43,383	141,851	158,722	24,470	(55)

	Net interest income after provision for credit losses	374,866			333,607	234,715	214,538	374,798	—


	Non-interest revenue:
	Service charges on deposit accounts	19,063			17,813	15,567	20,689	22,385	(15)
	Fiduciary and asset management fees	17,242			15,885	14,950	15,174	15,645	10
	Card fees	11,743			10,823	9,186	10,950	11,325	4
	Brokerage revenue	11,794			10,604	9,984	12,398	11,106	6
	Mortgage banking income	24,426			31,229	23,530	12,227	9,287	163
	Capital markets income	4,352			5,690	6,050	11,243	8,972	(51)
	Income from bank-owned life insurance	9,725			7,778	7,756	6,038	5,620	73
	Investment securities gains (losses), net	2,337			(1,550)	69,409	8,734	(2,157)	nm
	Gain on sale and fair value increase/(decrease) of private equity investments	63			260	8,707	(4,255)	8,100	nm
	Other non-interest revenue	14,016			15,879	8,345	10,659	7,672	83

	Total non-interest revenue	114,761			114,411	173,484	103,857	97,955	17



	Non-interest expense:
	Salaries and other personnel expense	153,946			154,994	159,597	149,678	145,084	6
	Net occupancy, equipment, and software expense	44,183			41,554	41,727	42,194	42,644	4
	Third-party processing and other services	19,569			20,620	21,366	21,480	20,293	(4)
	Professional Fees	17,541			13,377	15,305	10,675	9,921	77
	FDIC insurance and other regulatory fees	6,288			6,793	6,851	5,278	9,825	(36)
	Amortization of intangibles	2,640			2,640	2,640	2,640	2,901	(9)
	Goodwill impairment	—			44,877	—	—	—	nm
	Restructuring charges	18,068			2,882	2,822	3,220	1,259	nm
	Loss on early extinguishment of debt	8,409			154	—	1,904	—	nm
	Earnout liability adjustments	—			—	4,908	—	—	nm
	Other operating expenses	31,854			28,764	28,925	39,210	34,194	(7)

	Total non-interest expense	302,498			316,655	284,141	276,279	266,121	14



	Income before income taxes	187,129			131,363	124,058	42,116	206,632	(9)
	Income tax expense	36,720			39,789	30,866	3,595	54,948	(33)

	Net income	150,409			91,574	93,192	38,521	151,684	(1)

	Less: Preferred stock dividends	8,291			8,291	8,291	8,291	8,291	—

	Net income available to common shareholders	$	142,118		83,283	84,901	30,230	143,393	(1)

	Net income per common share, basic	$	0.96		0.57	0.58	0.21	0.98	(1)	%

	Net income per common share, diluted	0.96			0.56	0.57	0.20	0.97	(1)

	Cash dividends declared per common share	0.33			0.33	0.33	0.33	0.30	10

	Return on average assets *	1.11		%	0.69	0.71	0.32	1.27	(16)	bps
	Return on average common equity *	12.31			7.28	7.48	2.75	13.08	(77)

	Weighted average common shares outstanding, basic	147,744			147,314	147,288	147,311	146,948	1	%
	Weighted average common shares outstanding, diluted	148,725			147,976	147,733	148,401	148,529	—

	nm - not meaningful
	bps - basis points
	* - ratios are annualized


Synovus


	BALANCE SHEET DATA	December 31, 2020		September 30, 2020		December 31, 2019

	(Unaudited)

	(In thousands, except share data)

	ASSETS
	Cash and due from banks	$	531,625	$	578,026	$	535,846
	Interest-bearing funds with Federal Reserve Bank	3,586,565		1,266,313		553,390
	Interest earning deposits with banks	20,944		20,929		20,635
	Federal funds sold and securities purchased under resale agreements	113,783		120,095		77,047
	Cash and cash equivalents	4,252,917		1,985,363		1,186,918

	Investment securities available for sale, at fair value	7,962,438		7,566,525		6,778,670
	Loans held for sale ($216,647, $285,899, and $115,173 measured at fair value, respectively)	760,123		745,160		115,173

	Loans, net of deferred fees and costs	38,252,984		39,549,847		37,162,450
	Allowance for loan losses	(605,736)		(603,800)		(281,402)
	Loans, net	37,647,248		38,946,047		36,881,048

	Cash surrender value of bank-owned life insurance	1,049,373		1,044,046		775,665
	Premises and equipment, net	463,959		471,208		493,940
	Goodwill	452,390		452,390		497,267
	Other intangible assets, net	45,112		47,752		55,671
	Other assets	1,732,526		1,782,047		1,418,930
	Total assets	$	54,366,086	$	53,040,538	$	48,203,282

	LIABILITIES AND SHAREHOLDERS' EQUITY
	Liabilities:
	Deposits:
	Non-interest-bearing deposits	$	13,477,854	$	13,075,081	$	9,439,485
	Interest-bearing deposits	33,213,717		31,590,823		28,966,019

	Total deposits	46,691,571		44,665,904		38,405,504

	Federal funds purchased and securities sold under repurchase agreements	227,922		202,344		165,690
	Other short-term borrowings	7,717		400,000		1,753,560
	Long-term debt	1,202,494		1,628,385		2,153,897
	Other liabilities	1,075,048		1,079,363		782,941
	Total liabilities	49,204,752		47,975,996		43,261,592

	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 168,132,522, 167,410,950, and 166,800,623; outstanding 148,039,495, 147,317,923, and 147,157,596	168,133		167,411		166,801
	Additional paid-in capital	3,851,208		3,832,142		3,819,336
	Treasury stock, at cost – 20,093,027, 20,093,027, and 19,643,027 shares	(731,806)		(731,806)		(715,560)
	Accumulated other comprehensive income, net	158,635		174,914		65,641
	Retained earnings	1,178,019		1,084,736		1,068,327
	Total shareholders’ equity	5,161,334		5,064,542		4,941,690
	Total liabilities and shareholders' equity	$	54,366,086	$	53,040,538	$	48,203,282


Synovus

	AVERAGE BALANCES AND YIELDS/RATES (1)
	(Unaudited)
	(Dollars in thousands)
		2020						2019
		Fourth			Third	Second	First	Fourth
		Quarter			Quarter	Quarter	Quarter	Quarter
	Interest Earning Assets
	Investment securities (2) (4)	$	7,493,822		7,227,400	6,618,533	6,680,047	6,696,768
	Yield	2.07		%	2.39	2.72	3.09	3.12
	Trading account assets (5)	$	8,496		5,391	6,173	6,306	7,986
	Yield	1.03		%	1.69	2.19	2.70	2.69
	Commercial loans (3) (4)	$	30,363,102		30,730,135	30,236,919	27,607,343	26,698,202
	Yield	3.96		%	3.80	3.95	4.57	4.82
	Consumer loans (3)	$	8,521,449		9,032,437	9,899,172	9,985,702	9,809,832
	Yield	4.00		%	4.08	4.34	4.60	5.07
	Allowance for loan losses	$	(595,547)		(591,098)	(498,545)	(368,033)	(269,052)
	Loans, net (3)	$	38,289,004		39,171,474	39,637,546	37,225,012	36,238,982
	Yield	4.03		%	3.92	4.08	4.62	4.93
	Mortgage loans held for sale	$	309,278		244,952	221,157	86,415	117,909
	Yield	2.74		%	2.92	3.09	3.67	3.77
	Other loans held for sale	$	544,301		493,940	19,246	—	—
	Yield	2.81		%	3.61	4.19	—	—
	Federal funds sold, due from Federal Reserve Bank, and other short-term investments	$	2,716,645		1,265,880	1,709,086	652,130	514,635
	Yield	0.10		%	0.11	0.11	1.02	1.71
	Federal Home Loan Bank and Federal Reserve Bank Stock (5)	$	162,537		200,923	247,801	284,082	278,586
	Yield	2.64		%	2.73	3.60	3.38	2.85
	Total interest earning assets	$	49,524,083		48,609,960	48,459,542	44,933,992	43,854,866
	Yield	3.49		%	3.58	3.75	4.33	4.60
	Interest-Bearing Liabilities
	Interest-bearing demand deposits	$	8,531,415		7,789,095	7,260,940	6,445,986	6,381,282
	Rate	0.16		%	0.19	0.21	0.51	0.60
	Money Market accounts	$	14,411,860		13,272,972	12,238,479	11,548,014	10,526,296
	Rate	0.26		%	0.36	0.46	1.00	1.13
	Savings deposits	$	1,147,667		1,114,956	1,036,024	926,822	915,640
	Rate	0.01		%	0.02	0.02	0.05	0.05
	Time deposits under $100,000	$	1,239,592		1,379,923	1,621,943	1,761,741	1,873,350
	Rate	0.74		%	1.03	1.43	1.64	1.27
	Time deposits over $100,000	$	3,302,959		3,863,821	4,772,555	5,051,705	5,198,266
	Rate	1.03		%	1.44	1.80	2.04	1.51
	Other brokered deposits	$	1,978,393		1,912,114	1,998,571	1,376,669	1,156,131
	Rate	0.23		%	0.23	0.25	1.42	1.84
	Brokered time deposits	$	1,795,982		2,232,940	2,244,429	2,166,496	2,121,069
	Rate	1.60		%	1.59	1.86	2.11	2.16
	Total interest-bearing deposits	$	32,407,868		31,565,821	31,172,941	29,277,433	28,172,034
	Rate	0.39		%	0.54	0.73	1.18	1.16
	Federal funds purchased and securities sold under repurchase agreements	$	174,316		180,342	250,232	167,324	192,731
	Rate	0.07		%	0.09	0.12	0.30	0.24
	Other short-term borrowings	$	—		46,739	550,000	1,384,362	1,565,507
	Rate	—		%	1.12	1.23	1.66	1.87
	Long-term debt	$	1,552,791		2,234,665	2,834,188	2,678,651	2,153,983
	Rate	3.96		%	2.71	2.36	2.78	3.07
	Total interest-bearing liabilities	$	34,134,975		34,027,567	34,807,361	33,507,770	32,084,255
	Rate	0.55		%	0.68	0.86	1.30	1.30
	Non-interest-bearing demand deposits	$	13,566,112		12,773,676	11,923,534	9,409,774	9,706,784
	Cost of funds	0.40		%	0.50	0.65	1.04	1.02
	Net interest margin	3.12		%	3.10	3.13	3.37	3.65
	Taxable equivalent adjustment	$	821		956	861	786	769

	(1) Yields and rates are annualized.
	(2) Excludes net unrealized gains and losses.
	(3) Average loans are shown net of unearned income. Non-performing loans are included.
	(4) Reflects taxable-equivalent adjustments, using the statutory federal income tax rate of 21%, in adjusting interest on tax-exempt loans and investment securities to a taxable equivalent basis.
	(5) Included as a component of other assets on the consolidated balance sheet.


Synovus
LOANS OUTSTANDING BY TYPE
(Unaudited)
(Dollars in thousands)
	Total Loans		Total Loans		Linked Quarter		Total Loans		Year/Year
Loan Type	December 31, 2020		September 30, 2020		% Change		December 31, 2019		% Change
Commercial, Financial, and Agricultural	$	12,574,899	$	13,120,038	(4)	%	$	10,239,559	23	%
Owner-Occupied	6,798,780		6,894,113		(1)		6,529,811		4
Total Commercial & Industrial	19,373,679		20,014,151		(3)		16,769,370		16

Multi-Family	2,197,942		2,365,118		(7)		1,989,096		10
Hotels	1,444,264		1,409,424		2		1,284,291		12
Office Buildings	2,261,253		2,313,346		(2)		2,255,308		—
Shopping Centers	1,607,223		1,698,993		(5)		1,785,616		(10)
Warehouses	702,020		730,253		(4)		703,705		—
Other Investment Property	1,133,828		1,145,313		(1)		986,311		15
Total Investment Properties	9,346,530		9,662,447		(3)		9,004,327		4

1-4 Family Construction	183,373		180,406		2		284,594		(36)
1-4 Family Investment Mortgage	445,795		474,632		(6)		495,421		(10)
Total 1-4 Family Properties	629,168		655,038		(4)		780,015		(19)

Commercial Development	130,802		111,493		17		103,643		26
Residential Development	245,776		260,313		(6)		282,677		(13)
Land Acquisition	218,158		276,584		(21)		323,122		(32)
Land and Development	594,736		648,390		(8)		709,442		(16)

Total Commercial Real Estate	10,570,434		10,965,875		(4)		10,493,784		1

Consumer Mortgages	5,507,700		5,658,525		(3)		5,546,368		(1)
Home Equity Lines	1,523,836		1,615,207		(6)		1,713,157		(11)
Credit Cards	281,018		264,829		6		268,841		5
Other Consumer Loans	1,073,989		1,130,237		(5)		2,396,294		(55)
Total Consumer	8,386,543		8,668,798		(3)		9,924,660		(15)

Unearned Income	(77,672)		(98,977)		(22)		(25,364)		206

Total	$	38,252,984	$	39,549,847	(3)	%	$	37,162,450	3	%


NON-PERFORMING LOANS COMPOSITION
(Unaudited)
(Dollars in thousands)	Total Non-performing Loans		Total Non-performing Loans		Linked Quarter		Total Non-performing Loans		Year/Year



Loan Type	December 31, 2020		September 30, 2020		% Change		December 31, 2019		% Change
Commercial, Financial, and Agricultural	$	77,386	$	95,365	(19)	%	$	56,186	38	%
Owner-Occupied	20,019		20,261		(1)		9,780		105
Total Commercial & Industrial	97,405		115,626		(16)		65,966		48

Multi-Family	168		157		7		385		(56)
Office Buildings	1,134		27,608		(96)		600		89
Shopping Centers	21,082		257		nm		718		nm
Warehouses	217		—		nm		—		nm
Other Investment Property	2,030		238		753		321		532
Total Investment Properties	24,631		28,260		(13)		2,024		nm

1-4 Family Construction	1,236		1,556		(21)		698		77
1-4 Family Investment Mortgage	2,383		1,815		31		1,555		53
Total 1-4 Family Properties	3,619		3,371		7		2,253		61

Commercial Development	582		833		(30)		87		569
Residential Development	533		648		(18)		395		35
Land Acquisition	1,048		910		15		628		67
Land and Development	2,163		2,391		(10)		1,110		95

Total Commercial Real Estate	30,413		34,022		(11)		5,387		465

Consumer Mortgages	8,740		7,433		18		12,545		(30)
Home Equity Lines	12,145		10,297		18		12,034		1
Other Consumer Loans	2,376		1,459		63		5,704		(58)
Total Consumer	23,261		19,189		21		30,283		(23)

Total	$	151,079	$	168,837	(11)	%	$	101,636	49	%


Synovus

	CREDIT QUALITY DATA
	(Unaudited)
	(Dollars in thousands)	2020						2019	Fourth Quarter

		Fourth			Third	Second	First	Fourth	'20 vs '19
		Quarter			Quarter	Quarter	Quarter	Quarter	% Change

	Non-performing Loans (NPL)	$	151,079		168,837	147,437	156,287	101,636	49	%
	Impaired Loans Held for Sale	23,590			—	—	—	—	nm
	Other Real Estate and Other Assets	17,394			23,280	30,242	33,679	35,810	(51)

	Non-performing Assets (NPAs)	192,063			192,117	177,679	189,966	137,446	40

	Allowance for Loan Losses (ALL)	605,736			603,800	588,648	493,452	281,402	115
	Reserve for Unfunded Commitments	47,785			60,794	61,029	38,420	1,375	nm

	Allowance for Credit Losses (ACL)	653,521			664,594	649,677	531,872	282,777	131

	Net Charge-Offs - Quarter	22,139			28,466	24,046	20,061	8,821
	Net Charge-Offs - YTD	94,712			72,573	44,107	20,061	57,612
	Net Charge-Offs / Average Loans - Quarter (1)	0.23		%	0.29	0.24	0.21	0.10
	Net Charge-Offs / Average Loans - YTD (1)	0.24			0.25	0.23	0.21	0.16
	NPLs / Loans	0.39			0.43	0.37	0.41	0.27
	NPAs / Loans, ORE and specific other assets	0.50			0.49	0.44	0.50	0.37
	ACL/Loans	1.71			1.68	1.63	1.39	0.76
	ALL/Loans	1.58			1.53	1.47	1.29	0.76

	ACL/NPLs	432.57			393.63	440.65	340.32	278.23
	ALL/NPLs	400.94			357.62	399.25	315.74	276.87

	Past Due Loans over 90 days and Still Accruing	$	4,117		7,512	8,391	6,398	15,943	(74)
	As a Percentage of Loans Outstanding	0.01		%	0.02	0.02	0.02	0.04

	Total Past Due Loans and Still Accruing	$	47,349		57,316	46,390	83,235	123,793	(62)
	As a Percentage of Loans Outstanding	0.12		%	0.14	0.12	0.22	0.33

	Accruing Troubled Debt Restructurings (TDRs)	$	134,972		163,511	166,461	160,128	133,145	1


	(1) Ratio is annualized.



	SELECTED CAPITAL INFORMATION (1)
	(Unaudited)
	(Dollars in thousands)
		December 31, 2020			September 30, 2020	December 31, 2019


	Tier 1 Capital	$	4,572,173		4,450,547	4,280,604
	Total Risk-Based Capital	5,604,043			5,536,918	5,123,381
	Common Equity Tier 1 Capital Ratio	9.67		%	9.30	8.95
	Tier 1 Capital Ratio	10.95			10.57	10.23
	Total Risk-Based Capital Ratio	13.43			13.16	12.25
	Tier 1 Leverage Ratio	8.50			8.48	9.16
	Common Equity as a Percentage of Total Assets (2)	8.51			8.54	9.14
	Tangible Common Equity Ratio (3) (5)	7.66			7.67	8.08
	Book Value Per Common Share (4)	$	31.24		30.73	29.93
	Tangible Book Value Per Common Share (3)	27.88			27.34	26.17


	(1) Current quarter regulatory capital information is preliminary.
	(2) Common equity consists of Total Shareholders' Equity less Preferred Stock.
	(3) Excludes the carrying value of goodwill and other intangible assets from common equity and total assets.
	(4) Book Value Per Common Share consists of Total Shareholders' Equity less Preferred Stock divided by total common shares outstanding.
	(5) See "Non-GAAP Financial Measures" of this report for applicable reconciliation.

SYNOVUS FINANCIAL CORP - FORM 8-K - EX-99.2 - January 26, 2021

Attached files

SYNOVUS FINANCIAL CORP Reports