10/16/2024 | Press release | Distributed by Public on 10/16/2024 15:13
Reported | Adjusted | |||||||||||
(dollars in thousands) | 3Q24 | 2Q24 | 3Q23 | 3Q24 | 2Q24 | 3Q23 | ||||||
Net income (loss) available to common shareholders | $ | 169,628 | $ | (23,741) | $ | 87,423 | $ | 177,120 | $ | 169,617 | $ | 122,770 |
Diluted earnings (loss) per share(1)
|
1.18 | (0.16) | 0.60 | 1.23 | 1.16 | 0.84 | ||||||
Total revenue | 564,720 | 306,147 | 550,298 | 564,051 | 563,597 | 550,552 | ||||||
Total loans | 43,120,674 | 43,093,397 | 43,679,910 | NA | NA | NA | ||||||
Total deposits | 50,193,740 | 50,195,778 | 50,203,890 | NA | NA | NA | ||||||
Return on avg assets(2)
|
1.2 | % | (0.1) | % | 0.6 | % | 1.3 | % | 1.2 | % | 0.9 | % |
Return on avg common equity(2)
|
14.4 | (2.1) | 8.2 | 15.0 | 15.3 | 11.5 | ||||||
Return on avg tangible common equity(2)
|
16.4 | (2.2) | 9.7 | 17.1 | 17.6 | 13.5 | ||||||
Net interest margin(3)
|
3.22 | % | 3.20 | % | 3.11 | % | NA | NA | NA | |||
Efficiency ratio-TE(3)(4)
|
55.41 | 98.15 | 64.11 | 52.97 | 53.05 | 55.01 | ||||||
NCO ratio-QTD | 0.25 | 0.32 | 0.61 | NA | NA | NA | ||||||
NPA ratio | 0.73 | 0.60 | 0.64 | NA | NA | NA |
Loans*
|
||||||||||||||
(dollars in millions) | 3Q24 | 2Q24 | Linked Quarter Change | Linked Quarter % Change | 3Q23 | Year/Year Change | Year/Year % Change | |||||||
Commercial & industrial | $ | 22,664.0 | $ | 22,536.6 | $ | 127.4 | 1 | % | $ | 22,781.0 | $ | (117.0) | (1) | % |
Commercial real estate | 12,177.5 | 12,215.5 | (38.0) | - | 12,394.9 | (217.4) | (2) | |||||||
Consumer | 8,279.2 | 8,341.3 | (62.1) | (1) | 8,504.1 | (224.9) | (3) | |||||||
Total loans | $ | 43,120.7 | $ | 43,093.4 | $ | 27.3 | - | % | $ | 43,679.9 | $ | (559.3) | (1) | % |
Deposits*
|
||||||||||||||
(dollars in millions) | 3Q24 | 2Q24 | Linked Quarter Change | Linked Quarter % Change | 3Q23 | Year/Year Change | Year/Year % Change | |||||||
Non-interest-bearing DDA | $ | 11,129.1 | $ | 11,177.7 | $ | (48.6) | - | % | $ | 12,395.1 | $ | (1,266.0) | (10) | % |
Interest-bearing DDA | 6,821.3 | 6,621.2 | 200.1 | 3 | 6,276.1 | 545.2 | 9 | |||||||
Money market | 11,031.5 | 10,747.9 | 283.6 | 3 | 10,786.3 | 245.2 | 2 | |||||||
Savings | 983.2 | 1,009.8 | (26.7) | (3) | 1,132.5 | (149.3) | (13) | |||||||
Public funds | 7,047.6 | 7,111.9 | (64.3) | (1) | 6,885.7 | 161.9 | 2 | |||||||
Time deposits | 8,075.7 | 8,125.2 | (49.5) | (1) | 6,506.4 | 1,569.3 | 24 | |||||||
Brokered deposits | 5,105.4 | 5,402.0 | (296.6) | (5) | 6,221.8 | (1,116.3) | (18) | |||||||
Total deposits | $ | 50,193.7 | $ | 50,195.8 | $ | (2.0) | - | % | $ | 50,203.9 | $ | (10.2) | - | % |
Income Statement Summary**
|
||||||||||||||
(in thousands, except per share data) | 3Q24 | 2Q24 | Linked Quarter Change | Linked Quarter % Change | 3Q23 | Year/Year Change | Year/Year % Change | |||||||
Net interest income | $ | 440,740 | $ | 434,998 | $ | 5,742 | 1 | % | $ | 443,159 | $ | (2,419) | (1) | % |
Non-interest revenue | 123,980 | (128,851) | 252,831 | NM | 107,139 | 16,841 | 16 | |||||||
Non-interest expense | 313,690 | 301,801 | 11,889 | 4 | 353,532 | (39,842) | (11) | |||||||
Provision for (reversal of) credit losses | 23,434 | 26,404 | (2,970) | (11) | 72,572 | (49,138) | (68) | |||||||
Income (loss) before taxes | $ | 227,596 | $ | (22,058) | $ | 249,654 | NM | $ | 124,194 | $ | 103,402 | 83 | % | |
Income tax expense (benefit) | 46,912 | (7,378) | 54,290 | NM | 27,729 | 19,183 | 69 | |||||||
Net income (loss) | 180,684 | (14,680) | 195,364 | NM | 96,465 | 84,219 | 87 | |||||||
Less: Net income (loss) attributable to noncontrolling interest | (871) | (652) | (219) | (34) | (630) | (241) | (38) | |||||||
Net income (loss) attributable to Synovus Financial Corp. | 181,555 | (14,028) | 195,583 | NM | 97,095 | 84,460 | 87 | |||||||
Less: Preferred stock dividends | 11,927 | 9,713 | 2,214 | 23 | 9,672 | 2,255 | 23 | |||||||
Net income (loss) available to common shareholders | $ | 169,628 | $ | (23,741) | $ | 193,369 | NM | $ | 87,423 | $ | 82,205 | 94 | % | |
Weighted average common shares outstanding, diluted | 143,979 | 145,565 | (1,586) | (1) | % | 146,740 | (2,761) | (2) | % | |||||
Diluted earnings (loss) per share | $ | 1.18 | $ | (0.16) | $ | 1.34 | NM | $ | 0.60 | $ | 0.58 | 97 | ||
Adjusted diluted earnings per share(1)
|
1.23 | 1.16 | 0.07 | 6 | 0.84 | 0.39 | 46 | |||||||
Effective tax rate | 20.61% | 33.45% | 22.33% |
Capital Ratios | |||||||
3Q24 | 2Q24 | 3Q23 | |||||
Common Equity Tier 1 capital (CET1) ratio | 10.65 | % |
(1)
|
10.60 | % | 10.13 | % |
Tier 1 capital ratio | 11.77 |
(1)
|
11.72 | 11.18 | |||
Total risk-based capital ratio | 13.62 |
(1)
|
13.56 | 13.12 | |||
Tier 1 leverage ratio | 9.55 |
(1)
|
9.44 | 9.38 | |||
Tangible common equity ratio | 7.28 | 6.76 | 5.90 |
Reconciliation of Non-GAAP Financial Measures | ||||||
(dollars in thousands) | 3Q24 | 2Q24 | 3Q23 | |||
Adjusted non-interest revenue | ||||||
Total non-interest revenue | $ | 123,980 | $ | (128,851) | $ | 107,139 |
Investment securities (gains) losses, net | - | 256,660 | - | |||
Gain on sale of GLOBALT | - | - | (1,929) | |||
Fair value adjustment on non-qualified deferred compensation | (2,062) | (561) | 1,035 | |||
Adjusted non-interest revenue | $ | 121,918 | $ | 127,248 | $ | 106,245 |
Adjusted non-interest expense | ||||||
Total non-interest expense | $ | 313,690 | $ | 301,801 | $ | 353,532 |
(Loss) gain on other loans held for sale | - | - | (30,954) | |||
Gain (loss) on early extinguishment of debt | - | - | 526 | |||
Restructuring (charges) reversals | (1,219) | 658 | (17,319) | |||
Valuation adjustment to Visa derivative | (8,700) | - | (900) | |||
Fair value adjustment on non-qualified deferred compensation | (2,062) | (561) | 1,035 | |||
Adjusted non-interest expense
|
$ | 301,709 | $ | 301,898 | $ | 305,920 |
Reconciliation of Non-GAAP Financial Measures, continued | ||||||
(dollars in thousands) | 3Q24 | 2Q24 | 3Q23 | |||
Adjusted revenue (TE) and tangible efficiency ratio | ||||||
Adjusted non-interest expense
|
$ | 301,709 | $ | 301,898 | $ | 305,920 |
Amortization of intangibles | (2,907) | (2,907) | (3,042) | |||
Adjusted tangible non-interest expense
|
$ | 298,802 | $ | 298,991 | $ | 302,878 |
Net interest income
|
$ | 440,740 | $ | 434,998 | $ | 443,159 |
Tax equivalent adjustment | 1,393 | 1,351 | 1,148 | |||
Net interest income (TE) | 442,133 | 436,349 | 444,307 | |||
Net interest income | $ | 440,740 | $ | 434,998 | $ | 443,159 |
Total non-interest revenue
|
123,980 | (128,851) | 107,139 | |||
Total revenue
|
$ | 564,720 | $ | 306,147 | $ | 550,298 |
Tax equivalent adjustment | 1,393 | 1,351 | 1,148 | |||
Total TE revenue | 566,113 | 307,498 | 551,446 | |||
Investment securities losses (gains), net | - | 256,660 | - | |||
Gain on sale of GLOBALT | - | - | (1,929) | |||
Fair value adjustment on non-qualified deferred compensation | (2,062) | (561) | 1,035 | |||
Adjusted revenue (TE)
|
$ | 564,051 | $ | 563,597 | $ | 550,552 |
Efficiency ratio-TE
|
55.41 | % | 98.15 | % | 64.11 | % |
Adjusted tangible efficiency ratio
|
52.97 | 53.05 | 55.01 | |||
Adjusted pre-provision net revenue | ||||||
Net interest income | $ | 440,740 | $ | 434,998 | $ | 443,159 |
Total non-interest revenue | 123,980 | (128,851) | 107,139 | |||
Total non-interest expense | (313,690) | (301,801) | (353,532) | |||
Pre-provision net revenue (PPNR) | $ | 251,030 | $ | 4,346 | $ | 196,766 |
Adjusted revenue (TE)
|
564,051 | 563,597 | 550,552 | |||
Adjusted non-interest expense
|
(301,709) | (301,898) | (305,920) | |||
Adjusted PPNR | $ | 262,342 | $ | 261,699 | $ | 244,632 |
Reconciliation of Non-GAAP Financial Measures, continued | ||||||
(dollars in thousands) | 3Q24 | 2Q24 | 3Q23 | |||
Adjusted return on average assets (annualized) | ||||||
Net income (loss) | $ | 180,684 | $ | (14,680) | $ | 96,465 |
Loss (gain) on other loans held for sale | - | - | 30,954 | |||
(Gain) loss on early extinguishment of debt | - | - | (526) | |||
Gain on sale of GLOBALT | - | - | (1,929) | |||
Restructuring charges (reversals) | 1,219 | (658) | 17,319 | |||
Valuation adjustment to Visa derivative | 8,700 | - | 900 | |||
Investment securities losses (gains), net | - | 256,660 | - | |||
Tax effect of adjustments(1)
|
(2,427) | (62,644) | (11,371) | |||
Adjusted net income | $ | 188,176 | $ | 178,678 | $ | 131,812 |
Net income (loss) annualized | $ | 718,808 | $ | (59,043) | $ | 382,714 |
Adjusted net income annualized | $ | 748,613 | $ | 718,639 | $ | 522,950 |
Total average assets | $ | 59,183,624 | $ | 59,246,849 | $ | 59,916,679 |
Return on average assets (annualized) | 1.2 | % | (0.1) | % | 0.6 | % |
Adjusted return on average assets (annualized) | 1.3 | 1.2 | 0.9 | |||
Adjusted net income available to common shareholders and adjusted diluted earnings per share
|
||||||
Net income (loss) available to common shareholders | $ | 169,628 | $ | (23,741) | $ | 87,423 |
Gain on sale of GLOBALT | - | - | (1,929) | |||
Loss (gain) on other loans held for sale | - | - | 30,954 | |||
(Gain) loss on early extinguishment of debt | - | - | (526) | |||
Restructuring charges (reversals) | 1,219 | (658) | 17,319 | |||
Valuation adjustment to Visa derivative | 8,700 | - | 900 | |||
Investment securities losses (gains), net | - | 256,660 | - | |||
Tax effect of adjustments(1)
|
(2,427) | (62,644) | (11,371) | |||
Adjusted net income available to common shareholders | $ | 177,120 | $ | 169,617 | $ | 122,770 |
Weighted average common shares outstanding, diluted(2)
|
143,979 | 145,565 | 146,740 | |||
Diluted earnings per share | $ | 1.18 | $ | (0.16) | $ | 0.60 |
Adjusted diluted earnings per share | 1.23 | 1.16 | 0.84 | |||
(1) An assumed marginal tax rate of 24.5% for 3Q24 and 2Q24 and 24.3% for 3Q23 was applied.
|
||||||
(2) Diluted shares of 146,034 (in thousands) used to calculate 2Q24 adjusted diluted earnings per share.
|
||||||
Reconciliation of Non-GAAP Financial Measures, continued | ||||||
(dollars in thousands) | 3Q24 | 2Q24 | 3Q23 | |||
Adjusted return on average common equity, return on average tangible common equity, and adjusted return on average tangible common equity (annualized)
|
||||||
Net income (loss) available to common shareholders | $ | 169,628 | $ | (23,741) | $ | 87,423 |
Loss (gain) on other loans held for sale | - | - | 30,954 | |||
(Gain) loss on early extinguishment of debt | - | - | (526) | |||
Gain on sale of GLOBALT | - | - | (1,929) | |||
Restructuring charges (reversals) | 1,219 | (658) | 17,319 | |||
Valuation adjustment to Visa derivative | 8,700 | - | 900 | |||
Investment securities losses (gains), net | - | 256,660 | - | |||
Tax effect of adjustments(1)
|
(2,427) | (62,644) | (11,371) | |||
Adjusted net income available to common shareholders
|
$ | 177,120 | $ | 169,617 | $ | 122,770 |
Adjusted net income available to common shareholders annualized
|
$ | 704,630 | $ | 682,196 | $ | 487,077 |
Amortization of intangibles, tax effected, annualized
|
8,735 | 8,831 | 9,131 | |||
Adjusted net income available to common shareholders excluding amortization of intangibles annualized
|
$ | 713,365 | $ | 691,027 | $ | 496,208 |
Net income (loss) available to common shareholders annualized
|
$ | 674,824 | $ | (95,486) | $ | 346,841 |
Amortization of intangibles, tax effected, annualized | 8,735 | 8,831 | 9,131 | |||
Net income (loss) available to common shareholders excluding amortization of intangibles annualized | $ | 683,559 | $ | (86,655) | $ | 355,972 |
Total average Synovus Financial Corp. shareholders' equity less preferred stock | $ | 4,692,722 | $ | 4,455,198 | $ | 4,223,422 |
Average goodwill | (480,440) | (480,902) | (476,408) | |||
Average other intangible assets, net | (38,793) | (41,547) | (59,016) | |||
Total average Synovus Financial Corp. tangible shareholders' equity less preferred stock | $ | 4,173,489 | $ | 3,932,749 | $ | 3,687,998 |
Return on average common equity (annualized) | 14.4 | % | (2.1) | % | 8.2 | % |
Adjusted return on average common equity (annualized) | 15.0 | 15.3 | 11.5 | |||
Return on average tangible common equity (annualized) | 16.4 | (2.2) | 9.7 | |||
Adjusted return on average tangible common equity (annualized) | 17.1 | 17.6 | 13.5 | |||
(1) An assumed marginal tax rate of 24.5% for 3Q24 and 2Q24 and 24.3% for 3Q23 was applied.
|
Reconciliation of Non-GAAP Financial Measures, continued | ||||||
(dollars in thousands) | September 30, 2024 | December 31, 2023 | September 30, 2023 | |||
Tangible common equity ratio
|
||||||
Total assets | $ | 59,589,628 | $ | 59,809,534 | $ | 59,342,930 |
Goodwill | (480,440) | (480,440) | (479,851) | |||
Other intangible assets, net | (37,207) | (45,928) | (49,096) | |||
Tangible assets | $ | 59,071,981 | $ | 59,283,166 | $ | 58,813,983 |
Total Synovus Financial Corp. shareholders' equity | $ | 5,355,976 | $ | 5,119,993 | $ | 4,536,958 |
Goodwill | (480,440) | (480,440) | (479,851) | |||
Other intangible assets, net | (37,207) | (45,928) | (49,096) | |||
Preferred Stock, no par value
|
(537,145) | (537,145) | (537,145) | |||
Tangible common equity | $ | 4,301,184 | $ | 4,056,480 | $ | 3,470,866 |
Total Synovus Financial Corp. shareholders' equity to total assets ratio
|
8.99 | % | 8.56 | % | 7.65 | % |
Tangible common equity ratio | 7.28 | 6.84 | 5.90 | |||
Amounts may not total due to rounding
|