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Section 1: 8-K (8-K)

syn-20200721
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

July 21, 2020
Date of Report
(Date of Earliest Event Reported)

Synovus Financial Corp.
(Exact Name of Registrant as Specified in its Charter)

Georgia1-1031258-1134883
(State of Incorporation)(Commission File Number)(IRS Employer Identification No.)

1111 Bay Avenue, Suite 500, Columbus, Georgia 31901
(Address of principal executive offices) (Zip Code)

(706) 641-6500
(Registrant’s telephone number, including area code)

________________________________________________
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

         Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

         Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

         Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

         Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $1.00 Par Value
SNV
New York Stock Exchange
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D
SNV-PrD
New York Stock Exchange
Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series E
SNV-PrE
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided
pursuant to Section 13(a) of the Exchange Act.





Item 2.02Results of Operations and Financial Condition
On July 21, 2020, Synovus Financial Corp. (the "Company") issued a press release announcing the Company’s financial results for the three and six month period ended June 30, 2020.
Pursuant to General Instruction F to Current Report on Form 8-K, the press release is attached to this Current Report as Exhibit 99.1 and only those portions of the press release related to the historical results of operations of the Company for the three and six month period June 30, 2020 are incorporated into this Item 2.02 by reference. The information contained in this Item 2.02, including the information set forth in the press release filed as Exhibit 99.1 to, and incorporated in, this Current Report is being "furnished" and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section. The information in Exhibit 99.1 furnished pursuant to this Item 2.02 shall not be incorporated by reference into any registration statement or other documents pursuant to the Securities Act of 1933, as amended (the "Securities Act"), or into any filing or other document pursuant to the Exchange Act except as otherwise expressly stated in any such filing.

Item 7.01Regulation FD Disclosure
On July 21, 2020, the Company made available the supplemental information (the "Supplemental Information") and slide presentation ("Slide Presentation") prepared for use with the press release. The investor call and webcast will be held at 8:30 a.m., ET, on July 21, 2020.
The information contained in this Item 7.01 of this Current Report, including the information set forth in the Supplemental Information and the Slide Presentation filed as Exhibit 99.2 and Exhibit 99.3 to, and incorporated in, this Current Report, is being "furnished" and shall not be deemed "filed" for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that Section. The information in Exhibit 99.2 and Exhibit 99.3 furnished pursuant to this Item 7.01 shall not be incorporated by reference into any registration statement or other documents pursuant to the Securities Act or into any filing or other document pursuant to the Exchange Act except as otherwise expressly stated in any such filing.

Item 9.01Financial Statements and Exhibits
(d)Exhibits
Exhibit No.Description
99.1
99.2
99.3





Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, Synovus has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SYNOVUS FINANCIAL CORP.
Date: July 21, 2020
By: /s/ Allan E. Kamensky
Name: Allan E. Kamensky
Title: Executive Vice President and General Counsel
         


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Section 2: EX-99.1 (EX-99.1)

Document

Exhibit 99.1
404684309_synovusa0411.jpg
Media Contact
Investor Contact
Lee Underwood
Kevin Brown
Media Relations
Investor Relations
(706) 644-0528(706) 644-0948
Synovus Announces Earnings for the Second Quarter 2020
Diluted Earnings per Share of $0.57 vs. $0.96 in 2Q19
Adjusted Diluted Earnings per Share of $0.23 vs. $1.00 in 2Q19

COLUMBUS, Ga., July 21, 2020 - Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended June 30, 2020.

Second Quarter 2020 Highlights
Diluted EPS of $0.57; adjusted diluted EPS of $0.23.
Period-end loan growth of $1.66 billion or 4.3% sequentially; funded approximately $2.9 billion in Paycheck Protection Program (PPP) loans, supporting more than 19,000 customers.
Core transaction deposits (non-interest bearing, NOW/savings, and money market deposits excluding public and brokered funds) increased $4.63 billion or 18.7% sequentially.
Interest-bearing deposit (NOW/savings, money market, and time deposit) costs down 45 bps from the first quarter.
Net interest income growth of $3.3 million sequentially; net interest margin of 3.13% vs. 3.37% in 1Q20.
Non-interest revenue increased $69.6 million sequentially and $83.7 million compared to prior year, largely due to investment gains of $78.1 million.
Provision for credit losses of $141.9 million reflected significant economic stress due to the COVID-19 healthcare crisis; allowance for credit losses coverage ratio (to loans) of 1.63%, or 1.74% excluding PPP loans.
Credit quality metrics remain stable, with the non-performing loan ratio and net charge-off ratio of 0.37% and 0.24%, respectively.
CET1 ratio improved 20 bps to 8.90% and Total Risk Based Capital ratio increased 41 bps to 12.70%.







Second Quarter Summary
ReportedAdjusted
(dollars in thousands)2Q201Q202Q192Q201Q202Q19
Net income available to common shareholders$84,901  $30,230  $153,034  $34,015  $30,708  $158,892  
Diluted earnings per share0.57  0.20  0.96  0.23  0.21  1.00  
Total loans39,914,297  38,258,024  36,138,561  N/AN/AN/A
Total deposits44,194,580  39,826,585  37,966,722  N/AN/AN/A
Total revenues 550,911  477,903  487,880  472,795  473,424  488,270  
Return on avg assets0.71 %0.32 %1.34 %0.32 %0.32 %1.39 %
Return on avg common equity7.48  2.75  13.90  3.00  2.79  14.43  
Return on avg tangible common equity8.69  3.34  16.09  3.60  3.39  16.70  
Net interest margin3.13  3.37  3.69  3.11  3.35  3.48  
Efficiency ratio51.58  57.81  54.14  57.91  56.72  52.08  
NCO ratio0.24  0.21  0.13  N/AN/AN/A
NPA ratio0.44  0.50  0.39  N/AN/AN/A

“Our performance in the second quarter demonstrates the key role we play as a financial resource and community partner in the markets we serve,” said Kessel D. Stelling, Synovus Chairman and CEO. “We delivered approximately $3 billion in Paycheck Protection Program loans to more than 19,000 customers and originated a record $1.4 billion in consumer mortgages. Through strong operating performance and effective balance sheet management, we further improved both our capital and liquidity levels during the quarter. As we navigate an uncertain economic environment, we continue to invest in the future while accelerating many Synovus Forward initiatives focused on efficiencies, digital enhancements, and customer experience. And as our communities manage through the challenges of the pandemic and longstanding racial inequalities, we are fully committed to do our part to bring strength and positive change.”



Balance Sheet
Loans*
(dollars in millions)2Q201Q20Linked Quarter ChangeLinked Quarter % Change2Q19Year/Year ChangeYear/Year % Change
Commercial & industrial$19,938.3  $17,661.4  $2,276.8  12.9 %$16,228.7  $3,709.5  22.9 %
Commercial real estate10,827.5  10,671.2  156.3  1.5  10,367.2  460.3  4.4  
Consumer9,246.7  9,950.9  (704.2) (7.1) 9,566.1  (319.5) (3.3) 
Unearned income(98.2) (25.5) (72.7) nm(23.6) (74.6) 316.8  
Total loans$39,914.3  $38,258.0  $1,656.3  4.3 %$36,138.6  $3,775.7  10.4 %

*Amounts may not total due to rounding
nm = not meaningful

Total loans ended the quarter at $39.91 billion, up $1.66 billion or 4.3% sequentially.
Commercial and industrial (C&I) loans sequential growth of $2.28 billion led by net growth of $2.71 billion in PPP loans, offsetting C&I line utilization of 41% compared to 50% in the prior quarter.
Consumer loans decreased by $704.2 million sequentially, primarily as a result of transitioning lending partnership assets to held-for-sale, partially offset by record portfolio mortgage production of $800.5 million, up $510.5 million sequentially.





Deposits*
(dollars in millions)2Q201Q20Linked Quarter ChangeLinked Quarter % Change2Q19Year/Year ChangeYear/Year % Change
Non-interest-bearing DDA$11,830.7  $8,968.8  $2,861.9  31.9 %$8,577.6  $3,253.1  37.9 %
Interest-bearing DDA5,057.2  4,617.4  439.9  9.5  4,847.2  210.0  4.3  
Money market11,457.2  10,255.0  1,202.2  11.7  8,952.9  2,504.3  28.0  
Savings1,080.1  949.5  130.6  13.8  891.2  188.9  21.2  
Public funds5,347.4  5,261.4  86.0  1.6  4,351.3  996.0  22.9  
Time deposits5,131.7  5,786.6  (655.0) (11.3) 7,343.0  (2,211.3) (30.1) 
Brokered deposits4,290.3  3,987.9  302.4  7.6  3,003.5  1,286.8  42.8  
Total deposits$44,194.6  $39,826.6  $4,368.0  11.0 %$37,966.7  $6,227.9  16.4 %

*Amounts may not total due to rounding

Total deposits ended the quarter at $44.19 billion, up $4.37 billion or 11.0% sequentially.
Core transaction deposits increased $4.63 billion or 18.7% sequentially, led by non-interest-bearing DDA growth of $2.86 billion.
Broad-based growth in NOW, MMA, and savings deposits more than offset a $655.0 million decline in time deposits.
2Q20 interest-bearing deposit costs declined 45 bps from 1Q20.

Income Statement Summary**
(in thousands, except per share data)2Q201Q20Linked Quarter ChangeLinked Quarter % Change2Q19Year/Year ChangeYear/Year % Change
Net interest income$376,566  $373,260  $3,306  0.9 %$397,262  $(20,696) (5.2)%
Non-interest revenue173,484  103,857  69,627  67.0  89,807  83,677  93.2  
Non-interest expense284,141  276,279  7,862  2.8  264,126  20,015  7.6  
Provision for credit losses141,851  158,722  (16,871) (10.6) 12,119  129,732  nm
Income before taxes$124,058  $42,116  $81,942  194.6 %$210,824  $(86,766) (41.2)%
Income tax expense30,866  3,595  27,271  nm54,640  (23,774) (43.5) 
Preferred stock dividends8,291  8,291  —  —  3,150  5,141  163.2  
Net income available to common shareholders$84,901  $30,230  $54,671  180.9 %$153,034  $(68,133) (44.5)%
Weighted average common shares outstanding, diluted147,733  148,401  (668) (0.5)%159,077  (11,344) (7.1)%
Diluted earnings per share$0.57  $0.20  $0.37  182.1  $0.96  $(0.39) (40.3) 
Adjusted diluted earnings per share0.23  0.21  0.02  11.3  1.00  (0.77) (77.0) 
** Amounts may not total due to rounding
nm - not meaningful

Core Performance

Total revenues were $550.9 million in the second quarter, up $73.0 million sequentially.
Net interest income increased $3.3 million, or 0.9% sequentially, benefiting from prudent deposit pricing, growth in PPP loan balances, and $9.2 million of PPP fees recognized in the quarter.
Net interest margin was 3.13%, down 24 bps from the prior quarter.



Non-interest revenue increased $69.6 million, or 67.0% sequentially, and increased $83.7 million, or 93.2% year-over-year. The sequential increase was largely attributable to $69.4 million of securities gains as a result of repositioning the investment portfolio.
Adjusted non-interest revenue decreased $4.0 million, or 4.0% sequentially, and increased $5.2 million, or 5.7% year-over-year. Mortgage revenue increased $11.3 million compared to the prior quarter on record production.
Non-interest expense increased $7.9 million, or 2.8% sequentially. Adjusted non-interest expense increased $5.3 million, or 1.9% sequentially.
The increase in expenses reflected a $7.1 million increase in mortgage commissions. Additionally, the second quarter included $6.7 million of professional fees associated with the implementation of Synovus Forward initiatives and $6.6 million of COVID-19 related expenses, partially offset by a $6.9 million reduction in benefits and payroll tax expense.
Provision for credit losses of $141.9 million reflected significant economic stress due to the COVID-19 healthcare crisis; allowance for credit losses coverage ratio (to loans) of 1.63%, or 1.74% excluding PPP loans.
Tax expense was $30.9 million, an increase of $27.3 million driven by higher pre-tax income and favorable discrete items in the first quarter; year-to-date effective tax rate of 20.74%.

Capital Ratios
2Q201Q202Q19
Common equity Tier 1 capital (CET1) ratio8.90 %
*
8.70 %9.61 %
Tier 1 capital ratio10.15  
*
9.95  10.09  
Total risk-based capital ratio12.70  
*
12.29  12.11  
Tier 1 leverage ratio8.38  
*
8.92  8.89  
Tangible common equity ratio7.41  7.94  8.56  
* Ratios are preliminary.

Capital

CET1 ratio increased 20 bps during the quarter to 8.90%, benefiting from higher net income and a reduction of $68.9 million in risk-weighted assets sequentially.
Total risk-based capital of 12.70% is the highest since 2Q18 and reflects continued allowance build.

Second Quarter Earnings Conference Call
Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on July 21, 2020. The earnings call will be accompanied by a slide presentation. Shareholders and other interested parties may listen to this conference call via simultaneous Internet broadcast. For a link to the webcast, go to investor.synovus.com/event. The replay will be archived for 12 months and will be available 30-45 minutes after the call.

Synovus Financial Corp. is a financial services company based in Columbus, Georgia, with approximately $54 billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services through 294 branches in Alabama, Florida, Georgia, South Carolina, and Tennessee. Synovus Bank, a wholly owned subsidiary of Synovus, has been recognized as one of the country's “Most Reputable Banks” by American Banker and the Reputation Institute. Synovus is on the web at synovus.com, and on Twitter, Facebook, LinkedIn, and Instagram.



Forward-Looking Statements

This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements through Synovus’ use of words such as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the future or otherwise regarding the outlook for Synovus’ future business and financial performance and/or the performance of the banking industry and economy in general. These forward-looking statements include, among others, our expectations regarding our future operating and financial performance, our expectations regarding net interest income and net interest margin; expectations on our growth strategy, expense and revenue initiatives, capital management, liquidity and funding, and future profitability; expectations on credit quality and performance; and the assumptions underlying our expectations. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Synovus to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, Synovus’ management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements in this press release. Many of these factors are beyond Synovus’ ability to control or predict.

These forward-looking statements are based upon information presently known to Synovus’ management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and uncertainties related to the impact of the COVID-19 pandemic on Synovus' assets, business, liquidity, financial condition, prospects and results of operations, and 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, 2019, under the captions “Cautionary Notice Regarding Forward-Looking Statements” and “Risk Factors” and in Synovus’ quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as otherwise may be required by law.





Non-GAAP Financial Measures

The measures entitled adjusted non-interest revenue; adjusted non-interest expense; adjusted total revenues; adjusted tangible efficiency ratio; adjusted net income available to common shareholders; adjusted earnings per diluted share; adjusted return on average assets; adjusted return on average common equity; return on average tangible common equity; adjusted return on average tangible common equity; and tangible common equity ratio are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are total non-interest revenue; total non-interest expense; total revenues; efficiency ratio-FTE; net income available to common shareholders; earnings per diluted common share; return on average assets; return on average common equity; and the ratio of total shareholders' equity to total assets, respectively.

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

Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)2Q201Q202Q19
Adjusted non-interest revenue
Total non-interest revenue$173,484  $103,857  $89,807  
Subtract/add: Investment securities (gains) losses, net(69,409) (8,734) 1,845  
Subtract/add: Gain on sale and fair value (increase) decrease of private equity investments(8,707) 4,255  (1,455) 
Adjusted non-interest revenue$95,368  $99,378  $90,197  
Adjusted non-interest expense
Total non-interest expense$284,141  $276,279  $264,126  
Subtract: Earnout liability adjustments(4,908) —  —  
Subtract: Merger-related expense—  —  (7,401) 
Subtract: Restructuring charges, net(2,822) (3,220) (18) 
Subtract: Loss on early extinguishment of debt, net
—  (1,904) —  
Adjusted non-interest expense
$276,411  $271,155  $256,707  



Reconciliation of Non-GAAP Financial Measures, continued
(dollars in thousands)2Q201Q202Q19
Adjusted total revenues and adjusted tangible efficiency ratio
Adjusted non-interest expense
$276,411  $271,155  $256,707  
Subtract: Amortization of intangibles(2,640) (2,640) (2,410) 
Adjusted tangible non-interest expense
$273,771  $268,515  $254,297  
Net interest income
$376,566  $373,260  $397,262  
Add: Tax equivalent adjustment
861  786  811  
Add: Total non-interest revenue
173,484  103,857  89,807  
Total FTE revenues
550,911  477,903  487,880  
Subtract/add: Investment securities (gains)/losses, net
(69,409) (8,734) 1,845  
Subtract/add: Gain on sale and fair value (increase) decrease of private equity investments(8,707) 4,255  (1,455) 
Adjusted total revenues
$472,795  $473,424  $488,270  
Efficiency ratio-FTE
51.58 %57.81 %54.14 %
Adjusted tangible efficiency ratio
57.91  56.72  52.08  

Adjusted return on average assets
Net income$93,192  $38,521  $156,184  
Add: Earnout liability adjustments4,908  —  —  
Add: Merger-related expense—  —  7,401  
Add: Restructuring charges, net2,822  3,220  18  
Add: Loss on early extinguishment of debt, net
—  1,904  —  
Subtract/add: Investment securities (gains) losses, net
(69,409) (8,734) 1,845  
Subtract/add: Gain on sale and fair value (increase) decrease of private equity investments(8,707) 4,255  (1,455) 
Add/subtract: Tax effect of adjustments19,500  (167) (1,951) 
Adjusted net income$42,306  $38,999  $162,042  
Net income annualized$374,816  $154,931  $626,452  
Adjusted net income annualized$170,154  $156,853  $649,949  
Total average assets$52,853,685  $48,696,595  $46,679,769  
Return on average assets0.71 %0.32 %1.34 %
Adjusted return on average assets0.32  0.32  1.39  
Adjusted net income available to common shareholders and adjusted net income per common share, diluted
Net income available to common shareholders$84,901  $30,230  $153,034  
Add: Earnout liability adjustments4,908  —  —  
Add: Merger-related expense—  —  7,401  
Add: Restructuring charges, net2,822  3,220  18  
Add: Loss on early extinguishment of debt, net—  1,904  —  
Subtract/add: Investment securities (gains) losses, net(69,409) (8,734) 1,845  
Subtract/add: Gain on sale and fair value (increase) decrease of private equity investments(8,707) 4,255  (1,455) 
Add/subtract: Tax effect of adjustments19,500  (167) (1,951) 
Adjusted net income available to common shareholders$34,015  $30,708  $158,892  
Weighted average common shares outstanding, diluted147,733  148,401  159,077  
Net income per common share, diluted$0.57  $0.20  $0.96  
Adjusted net income per common share, diluted0.23  0.21  1.00  




Reconciliation of Non-GAAP Financial Measures, continued
(dollars in thousands)
2Q201Q202Q19
Adjusted return on average common equity, return on average tangible common equity, and adjusted return on average tangible common equity
Net income available to common shareholders$84,901  $30,230  $153,034  
Add: Earnout liability adjustments4,908  —  —  
Add: Merger-related expense—  —  7,401  
Add: Restructuring charges, net2,822  3,220  18  
Add: Loss on early extinguishment of debt, net—  1,904  —  
Subtract/add: Investment securities (gains) losses, net(69,409) (8,734) 1,845  
Subtract/add: Gain on sale and fair value (increase) decrease of private equity investments(8,707) 4,255  (1,455) 
Add/subtract: Tax effect of adjustments
19,500  (167) (1,951) 
Adjusted net income available to common shareholders
$34,015  $30,708  $158,892  
Adjusted net income available to common shareholders annualized
$136,808  $123,507  $637,314  
Add: Amortization of intangibles
7,868  7,868  7,250  
Adjusted net income available to common shareholders excluding amortization of intangibles annualized
$144,676  $131,375  $644,564  
Net income available to common shareholders annualized
$341,470  $121,584  $613,818  
Add: Amortization of intangibles7,868  7,868  7,250  
Net income available to common shareholders excluding amortization of intangibles annualized$349,338  $129,452  $621,068  
Total average shareholders' equity less preferred stock$4,567,254  $4,424,278  $4,416,705  
Subtract: Goodwill(497,267) (497,267) (487,601) 
Subtract: Other intangible assets, net(51,667) (54,514) (69,853) 
Total average tangible shareholders' equity less preferred stock$4,018,320  $3,872,497  $3,859,251  
Return on average common equity7.48 %2.75 %13.90 %
Adjusted return on average common equity3.00  2.79  14.43  
Return on average tangible common equity8.69  3.34  16.09  
Adjusted return on average tangible common equity3.60  3.39  16.70  

June 30, 2020March 31, 2020June 30, 2019
Tangible common equity ratio
Total assets
$54,121,989  $50,619,585  $47,318,203  
Subtract: Goodwill
(497,267) (497,267) (492,390) 
Subtract: Other intangible assets, net
(50,392) (53,032) (61,473) 
Tangible assets
$53,574,330  $50,069,286  $46,764,340  
Total shareholders’ equity
$5,052,968  $5,065,205  $4,753,816  
Subtract: Goodwill
(497,267) (497,267) (492,390) 
Subtract: Other intangible assets, net
(50,392) (53,032) (61,473) 
Subtract: Preferred Stock, no par value
(537,145) (537,145) (195,140) 
Tangible common equity
$3,968,164  $3,977,761  $4,004,813  
Total shareholders’ equity to total assets ratio
9.34 %10.01 %10.05 %
Tangible common equity ratio
7.41  7.94  8.56  


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Section 3: EX-99.2 (EX-99.2)

Document


Exhibit 99.2
INCOME STATEMENT DATA
(Unaudited)
(Dollars in thousands, except per share data)Second Quarter
20202019'20 vs '19
% Change
Interest income$935,466  $1,020,970  (8.4)%
Interest expense185,640  226,532  (18.1) 
Net interest income749,826  794,438  (5.6) 
Provision for credit losses300,573  35,688  742.2  
Net interest income after provision for credit losses449,253  758,750  (40.8) 
Non-interest revenue:
Service charges on deposit accounts36,255  42,853  (15.4) 
Fiduciary and asset management fees30,124  28,057  7.4  
Card fees20,136  22,037  (8.6) 
Brokerage revenue22,383  19,431  15.2  
Mortgage banking income35,757  12,962  175.9  
Capital markets income17,294  14,161  22.1  
Income from bank-owned life insurance13,794  10,466  31.8  
Investment securities gains/(losses), net78,144  (1,771) nm
Gain on sale and fair value increase, net, of private equity investments4,452  2,313  nm
Other non-interest revenue19,002  18,676  1.7  
Total non-interest revenue277,341  169,185  63.9  
Non-interest expense:
Salaries and other personnel expense309,274  282,436  9.5  
Net occupancy, equipment, and software expense83,921  78,245  7.3  
Third-party processing and other services42,846  36,875  16.2  
Professional fees25,980  15,660  65.9  
FDIC insurance and other regulatory fees12,129  14,629  (17.1) 
Amortization of intangibles5,280  5,802  (9.0) 
Merger-related expense—  57,140  nm
Earnout liability adjustments4,908  —  nm
Loss on early extinguishment of debt, net1,904  —  nm
Restructuring charges6,042  37  nm
Other operating expenses68,137  65,713  3.7  
Total non-interest expense560,421  556,537  0.7  
Income before income taxes166,173  371,398  (55.3) 
Income tax expense34,461  95,028  (63.7) 
Net income131,712  276,370  (52.3) 
Less: Preferred stock dividends16,581  6,300  163.2  
Net income available to common shareholders$115,131  $270,070  (57.4)%
Net income per common share, basic$0.78  $1.70  (53.9)%
Net income per common share, diluted0.78  1.68  (53.7) 
Cash dividends declared per common share0.66  0.60  10.0  
Return on average assets *0.52 %1.21 %(69)bps
Return on average common equity *5.15  12.46  (731) 
Weighted average common shares outstanding, basic147,300  159,148  (7.4)%
Weighted average common shares outstanding, diluted148,067  160,908  (8.0) 
nm - not meaningful
bps - basis points
* - ratios are annualized





Synovus
INCOME STATEMENT DATA
(Unaudited)
(Dollars in thousands, except per share data)20202019Second Quarter
Second QuarterFirst QuarterFourth QuarterThird QuarterSecond Quarter'20 vs '19
% Change
Interest income$451,569  483,897  506,253  523,415  516,131  (12.5)%
Interest expense75,003  110,637  106,985  121,318  118,869  (36.9) 
Net interest income376,566  373,260  399,268  402,097  397,262  (5.2) 
Provision for credit losses141,851  158,722  24,470  27,562  12,119  nm
Net interest income after provision for credit losses234,715  214,538  374,798  374,535  385,143  (39.1) 
Non-interest revenue:
Service charges on deposit accounts15,567  20,689  22,385  22,952  21,994  (29.2) 
Fiduciary and asset management fees14,950  15,174  15,645  14,686  14,478  3.3  
Card fees9,186  10,950  11,325  12,297  11,161  (17.7) 
Brokerage revenue9,984  12,398  11,106  11,071  10,052  (0.7) 
Mortgage banking income23,530  12,227  9,287  10,351  7,907  197.6  
Capital markets income 6,050  11,243  8,972  7,396  8,916  (32.1) 
Income from bank-owned life insurance7,756  6,038  5,620  5,139  5,176  49.8  
Investment securities gains/(losses), net69,409  8,734  (2,157) (3,731) (1,845) nm
Gain on sale and fair value increase/(decrease) of private equity investments8,707  (4,255) 8,100  1,194  1,455  nm
Other non-interest revenue8,345  10,659  7,672  7,405  10,513  (20.6) 
Total non-interest revenue173,484  103,857  97,955  88,760  89,807  93.2  
Non-interest expense:
Salaries and other personnel expense159,597  149,678  145,084  142,516  143,009  11.6  
Net occupancy, equipment, and software expense41,727  42,194  42,644  41,017  39,851  4.7  
Third-party processing and other services21,366  21,480  20,293  18,528  19,118  11.8  
Professional fees15,305  10,675  9,921  9,719  9,312  64.4  
FDIC insurance and other regulatory fees6,851  5,278  9,825  7,242  7,867  (12.9) 
   Amortization of intangibles2,640  2,640  2,901  2,901  2,410  9.5  
Merger-related expense—  —  (913) 353  7,401  nm
Earnout liability adjustments4,908  —  —  10,457  —  nm
   Loss on early extinguishment of debt, net—  1,904  —  4,592  —  nm
   Valuation adjustment to Visa derivative —  —  1,111  2,500  —  nm
Restructuring charges 2,822  3,220  1,259  (66) 18  nm
Other operating expenses28,925  39,210  33,996  36,551  35,140  (17.7) 
Total non-interest expense284,141  276,279  266,121  276,310  264,126  7.6  
Income before income taxes124,058  42,116  206,632  186,985  210,824  (41.2) 
Income tax expense30,866  3,595  54,948  51,259  54,640  (43.5) 
Net income93,192  38,521  151,684  135,726  156,184  (40.3) 
Less: Preferred stock dividends8,291  8,291  8,291  8,291  3,150  163.2  
Net income available to common shareholders$84,901  30,230  143,393  127,435  153,034  (44.5)%
Net income per common share, basic$0.58  0.21  0.98  0.84  0.97  (40.7)%
Net income per common share, diluted0.57  0.20  0.97  0.83  0.96  (40.3) 
Cash dividends declared per common share0.33  0.33  0.30  0.30  0.30  10.0  
Return on average assets *0.71 %0.32  1.27  1.14  1.34  (63)bps