Press Release

Synovus Announces Earnings for the Fourth Quarter 2019 and a 10% Increase in Common Stock Dividend

Company Release - 1/24/2020 6:30 AM ET

COLUMBUS, Ga.--(BUSINESS WIRE)-- Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter and year ended December 31, 2019. The Board of Directors also approved a 10% increase in the Company’s quarterly common stock dividend from $0.30 to $0.33 per share, effective with the quarterly dividend payable in April 2020.

2019 Highlights

  • Net income available to common shareholders for 2019 was $540.9 million or $3.47 per diluted share as compared to $410.5 million or $3.47 per diluted share for 2018.
    • Adjusted earnings per diluted share for 2019 were $3.90 as compared to $3.64 for 2018, an increase of 7.3%.
  • Loans up $11.2 billion, or 43.2%, from 2018.  
  • Deposits up $11.7 billion, or 43.7%, from 2018.
  • Non-interest income was $355.9 million, an increase of $75.8 million from 2018. 
  • Non-interest expense was $1.1 billion in 2019, an increase of $269.5 million from 2018.
  • Net interest margin of 3.70%, a decline of 16 basis points from the previous year. Excluding the impact of purchase accounting adjustments (PAA), net interest margin was 3.47%, down 39 basis points from the prior year.
  • Credit quality was strong, with the non-performing loan (NPL) ratio declining 14 basis points from year-end 2018 to 0.27% and the non-performing asset (NPA) ratio declining 7 basis points from the prior year to 0.37%. The net charge-off ratio was 0.16% in 2019 compared to 0.20% in the prior year.
  • Completed integration of Florida Community Bank (FCB) and introduced new teams and products in legacy FCB markets.
  • Following the FCB acquisition, the Company returned $893 million to common shareholders during the year with repurchases of $725 million in common stock and $168 million in common dividends.
  • Total share count declined 10.9% from January 1, 2019. 

Fourth Quarter 2019 Highlights

  • Diluted EPS of $0.97; adjusted diluted EPS of $0.94, down 3.0% sequentially and up 3.1% year-over-year.
  • Period-end loan growth of $744.6 million, or 8.1% annualized, from prior quarter on total funded loan production of $3.55 billion.
  • Period-end deposit growth of $972.4 million, or 10.3% annualized, from third quarter 2019.
    • Core transaction deposits increased $373.0 million from the prior quarter.
    • Total deposit costs declined 13 basis points from the previous quarter.
  • Net interest margin of 3.65%, a decline of 4 basis points from the previous quarter. Excluding the impact of purchase accounting adjustments (PAA), net interest margin was 3.40%, down 2 basis points from the prior quarter.
  • Non-interest income was $98.0 million in the fourth quarter, an increase of $9.2 million from the third quarter and $30.0 million from the prior-year quarter.
  • Non-interest expense was $266.1 million in the fourth quarter, a decrease of $10.2 million from the third quarter and an increase of $56.2 million from the prior-year quarter.
  • Credit quality metrics remained solid, with the NPL ratio and the NPA ratio each declining by 5 basis points, to 0.27% and 0.37%, respectively. The net charge-off ratio was 0.10%.
  • Repurchased $36.5 million in common stock (1.1 million shares) during the quarter.

Fourth Quarter Summary

 

Reported

 

Adjusted

(dollars in thousands)

4Q19

 

3Q19

 

4Q18

 

4Q19

 

3Q19

 

4Q18

Net income available to common shareholders

$

143,393

 

 

$

127,435

 

 

$

101,919

 

 

$

140,069

 

 

$

149,732

 

 

$

107,001

 

Diluted earnings per share

0.97

 

 

0.83

 

 

0.87

 

 

0.94

 

 

0.97

 

 

0.91

 

Total loans

37,162,450

 

 

 

36,417,826

 

 

 

25,946,573

 

 

N/A

 

N/A

 

N/A

Total deposits

38,405,504

 

 

37,433,070

 

 

26,720,322

 

 

N/A

 

N/A

 

N/A

Total revenues

497,992

 

 

491,676

 

 

366,105

 

 

492,049

 

 

494,213

 

 

368,189

 

Return on avg assets

1.27

%

 

1.14

%

 

1.29

%

 

1.24

%

 

1.33

%

 

1.36

%

Return on avg common equity

13.08

 

 

11.36

 

 

14.25

 

 

12.78

 

 

13.35

 

 

14.96

 

Return on avg tangible common equity

15.18

 

 

13.19

 

 

14.63

 

 

14.84

 

 

15.46

 

 

15.36

 

Net interest margin

3.65

 

 

3.69

 

 

3.92

 

 

3.40

 

 

3.42

 

 

N/A

Efficiency ratio

53.44

 

 

56.20

 

 

57.34

 

 

53.20

 

 

51.71

 

 

55.98

 

Net charge-off ratio

0.10

 

 

0.22

 

 

0.20

 

 

N/A

 

N/A

 

N/A

NPA ratio

0.37

 

 

0.42

 

 

0.44

 

 

N/A

 

N/A

 

N/A

“The successful integration of Florida Community Bank (FCB), broad-based growth across multiple business lines throughout our five-state footprint, and continued strength in credit quality highlight our accomplishments in 2019,” said Kessel D. Stelling, Synovus Chairman and CEO. “In addition, strong growth in fee-based revenue reflects our success in attracting and retaining top talent and expanding customer relationships. We enter 2020 with considerable momentum, focused on expanding revenue sources and improving efficiencies that strengthen our company and create long-term shareholder value.”

Balance Sheet

Loans**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

4Q19

 

3Q19

 

Linked
Quarter
Change

 

Linked
Quarter %
Change*

 

4Q18

 

Year/Year
Change

 

Year/Year %
Change

Commercial & industrial

$

16,782.7

 

 

$

16,418.3

 

 

$

364.4

 

 

8.8

%

 

$

12,781.2

 

 

$

4,001.5

 

 

31.3

%

Commercial real estate

10,480.5

 

 

10,313.0

 

 

167.5

 

 

6.4

 

 

6,564.5

 

 

3,916.0

 

 

59.7

 

Consumer

9,924.7

 

 

9,709.2

 

 

215.5

 

 

8.8

 

 

6,625.0

 

 

3,299.6

 

 

49.8

 

Unearned income

(25.4

)

 

(22.7

)

 

(2.7

)

 

47.2

 

 

(24.1

)

 

(1.2

)

 

5.1

 

Total loans

$

37,162.5

 

 

$

36,417.8

 

 

$

744.6

 

 

8.1

%

 

$

25,946.6

 

 

$

11,215.9

 

 

43.2

%

* Annualized

** Amounts may not total due to rounding

  • Total funded loan production in the quarter was approximately $3.55 billion.
  • Commercial and industrial loans increased $364.4 million, or 8.8%, from the prior quarter, with broad-based growth across industries and geographies.
  • Consumer loans grew $215.5 million, or 8.8%, from the third quarter 2019, with increases in all four categories.
  • Commercial real estate loans increased by $167.5 million, or 6.4%, from the prior quarter, with growth in 7 of 10 asset classes.

Deposits**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

4Q19

 

3Q19

 

Linked
Quarter
Change

 

Linked
Quarter %
Change*

 

4Q18

 

Year/Year
Change

 

Year/Year
% Change

Non-interest-bearing DDA

$

8,661.2

 

 

$

8,970.2

 

 

$

(309.0

)

 

(13.7

)%

 

$

6,926.5

 

 

$

1,734.7

 

 

25.0

%

Interest-bearing DDA

4,769.5

 

 

4,714.8

 

 

54.7

 

 

4.6

 

 

3,690.7

 

 

1,078.8

 

 

29.2

 

Money market

9,827.4

 

 

9,212.1

 

 

615.2

 

 

26.5

 

 

7,681.8

 

 

2,145.5

 

 

27.9

 

Savings

909.5

 

 

897.3

 

 

12.2

 

 

5.4

 

 

812.5

 

 

97.0

 

 

11.9

 

Public funds

4,622.3

 

 

3,795.3

 

 

827.0

 

 

86.4

 

 

2,374.9

 

 

2,247.4

 

 

94.6

 

Time deposits

6,185.6