News Details

Synovus Announces Earnings for the Fourth Quarter 2021

Company Release - 1/20/2022

Diluted Earnings per Share of $1.31 vs. $1.21 in 3Q21

Adjusted Diluted Earnings per Share of $1.35 vs. $1.20 in 3Q21

COLUMBUS, Ga.--(BUSINESS WIRE)-- Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter and year ended December 31, 2021.

2021 Highlights

  • Net income available to common shareholders for 2021 was $727.3 million or $4.90 per diluted share as compared to $340.5 million or $2.30 per diluted share for 2020.
    • Adjusted earnings per diluted share for 2021 were $4.95 as compared to $2.41 for 2020, an increase of 106%.
  • Period-end loan growth of $2.9 billion or 8% excluding Paycheck Protection Program (PPP) loans.
    • Processed and approved $1.0 billion in Round 2 PPP loans, supporting approximately 11,000 customers.
  • Period-end deposit growth of $2.7 billion or 6%.
    • Core transaction deposits (non-interest bearing, interest bearing demand, NOW/savings, and money market deposits excluding public and brokered funds) increased $5.1 billion or 16%.
    • Cost of deposits decreased 16 basis points to 0.12% in the fourth quarter of 2021 as compared to the fourth quarter of 2020.
  • Non-interest revenue, excluding securities gains, increased $23.3 million or 5% year over year, reflecting strong growth in core banking fees and wealth revenue, offset by the normalization of net mortgage revenue.
  • Well capitalized with preliminary year-end ratios of 9.49% for CET1 and 12.60% for total risk-based capital.
    • Completed share repurchases totaling $200 million, reducing outstanding shares by 4.4 million, or 3% from the prior year.
  • Allowance for Credit Losses (ACL) decreased $184.0 million, and the ACL ratio decreased 52 basis points to 1.19%, or 1.21% excluding PPP loans, primarily due to a continued positive shift in the economic outlook.
  • Achieved pre-tax run rate benefit of approximately $110 million from Synovus Forward initiatives, driving positive operating leverage, ahead of schedule; remain on track for expected cumulative $175 million pre-tax benefit by the end of 2022.
  • Implemented executive succession plan with Kessel Stelling moving into the role of Executive Chairman and Kevin Blair becoming President and CEO in April 2021.

Fourth Quarter 2021 Highlights

  • Net income available to common shareholders was $192.1 million or $1.31 per diluted share as compared to $178.5 million or $1.21 in the prior quarter.
    • Adjusted earnings per diluted share of $1.35, up 12% quarter over quarter and 25% year over year.
  • Period-end loan growth of $1.4 billion or 4% quarter over quarter, excluding the reduction in PPP loans.
    • PPP loans declined $382.6 million quarter over quarter.
  • Period-end deposit growth of $1.7 billion or 4% from the third quarter.
    • Core transaction deposits increased $1.3 billion or 4% quarter over quarter.
  • Net interest income of $392.3 million an increase of 2% quarter over quarter.
    • Growth in core loans and securities portfolio offset reduction in PPP fee accretion of $8.6 million quarter over quarter.
  • Non-interest revenue of 117.1 million, an increase of 2% from third quarter.
    • Continued growth in wealth revenue and a one-time $8 million BOLI benefit in the fourth quarter were offset by a reduction in net mortgage revenue.
  • Non-interest expense of $295.2 million, an increase of $28.2 million from the third quarter.
    • Adjusted non-interest expense of $285.6 million increased $18.5 million quarter over quarter due to recurring expense increases such as investments in Synovus Forward initiatives as well as other expense increases not expected to recur including a seed gift into a newly established donor advised fund and environment-driven health care costs.
  • Credit quality metrics experienced broad based improvement.
    • Key metrics include a quarter-end non-performing loan ratio of 0.33%, non-performing asset ratio of 0.40% and a quarterly net charge-off ratio of 0.11%.

Fourth Quarter Summary

 

Reported

 

Adjusted

(dollars in thousands)

 

4Q21

 

 

 

3Q21

 

 

 

4Q20

 

 

 

4Q21

 

 

 

3Q21

 

 

 

4Q20

 

Net income available to common shareholders

$

192,110

 

 

$

178,482

 

 

$

142,118

 

 

$

198,373

 

 

$

177,760

 

 

$

160,618

 

Diluted earnings per share

 

1.31

 

 

 

1.21

 

 

 

0.96

 

 

 

1.35

 

 

 

1.20

 

 

 

1.08

 

Total loans

 

39,311,958

 

 

 

38,341,030

 

 

 

38,252,984

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

Total deposits

 

49,427,276

 

 

 

47,688,419

 

 

 

46,691,571

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

Total TE(1) revenue

 

510,265

 

 

 

500,608

 

 

 

501,514

 

 

 

509,040

 

 

 

499,743

 

 

 

497,342

 

Return on avg assets

 

1.40

%

 

 

1.34

%

 

 

1.11

%

 

 

1.44

%

 

 

1.33

%

 

 

1.25

%

Return on avg common equity

 

16.11

 

 

 

14.96

 

 

 

12.31

 

 

 

16.64

 

 

 

14.90

 

 

 

13.91

 

Return on avg tangible common equity

 

18.14

 

 

 

16.85

 

 

 

14.00

 

 

 

18.72

 

 

 

16.79

 

 

 

15.79

 

Net interest margin

 

2.96

 

 

 

3.01

 

 

 

3.12

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

Efficiency ratio

 

57.85

 

 

 

53.34

 

 

 

60.32

 

 

 

55.64

 

 

 

52.96

 

 

 

54.43

 

Net charge-off ratio

 

0.11

 

 

 

0.22

 

 

 

0.23

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

NPA ratio

 

0.40

 

 

 

0.45

 

 

 

0.50

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

(1)Taxable equivalent

“Our team closed out a strong 2021 as fourth quarter results showed sustained momentum headlined by broad-based loan growth during the quarter, and earnings per share of $1.31, which is up 37% from the fourth quarter 2020,” said Synovus President and CEO Kevin Blair. “2021 was another challenging year, but our teams were able to navigate the uncertain environment to support our clients, contribute to our communities and deliver for our shareholders. Driven by record levels of loan production, continued growth in our fee income businesses and disciplined expense management, we generated 6% growth in adjusted pre-provision net revenue in 2021. Momentum as we enter 2022 is strong; coupled with the strategic investments we are making in talent and technology, we are extremely well-positioned to deliver outsized growth this year and in years to come.”

Balance Sheet

Loans*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

 

4Q21

 

 

3Q21

 

Linked Quarter Change

 

Linked Quarter % Change

 

 

4Q20

 

Year/Year Change

 

Year/Year % Change

Commercial & industrial

$

19,561.2

 

$

18,934.8

 

$

626.4

 

 

3

%

 

$

19,520.2

 

$

41.0

 

%

Commercial real estate

 

10,981.5

 

 

10,540.3

 

 

441.2

 

 

4

 

 

 

10,325.7

 

 

655.8

 

6

 

Consumer

 

8,769.3

 

 

8,866.0

 

 

(96.7

)

 

(1

)

 

 

8,407.1

 

 

362.2

 

4

 

Total loans

$

39,312.0

 

$

38,341.0

 

$

970.9

 

 

3

%

 

$

38,253.0

 

$

1,059.0

 

3

%

* Amounts may not total due to rounding

  • Total loans ended the quarter at $39.3 billion, up $1.0 billion or 3% quarter over quarter.
    • Loan growth, excluding PPP loans, was $1.4 billion or 4% quarter over quarter.
    • Second consecutive quarter of record commercial loan production.
  • Commercial and industrial (C&I) loans increased $626.4 million or 3% from the prior quarter.
    • C&I line utilization increased approximately 340 basis points to 43%.
  • Commercial real estate (CRE) loans increased by $441.2 million or 4% from the prior quarter as pay-off and pay-down activity normalized.
  • Consumer loans decreased by $96.7 million or 1% sequentially.

Deposits*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

 

4Q21

 

 

3Q21

 

Linked Quarter Change

 

Linked Quarter % Change

 

 

4Q20

 

Year/Year Change

 

Year/Year % Change

Non-interest-bearing DDA

$

15,242.8

 

$

14,832.9

 

$

409.9

 

 

3

%

 

$

12,382.7

 

$

2,860.1

 

 

23

%

Interest-bearing DDA

 

6,347.0

 

 

6,056.0

 

 

291.0

 

 

5

 

 

 

5,674.4

 

 

672.5

 

 

12

 

Money market

 

14,886.4

 

 

14,267.4

 

 

619.0

 

 

4

 

 

 

13,541.2

 

 

1,345.2

 

 

10

 

Savings

 

1,404.4

 

 

1,380.4

 

 

24.0

 

 

2

 

 

 

1,156.2

 

 

248.2

 

 

21

 

Public funds

 

6,284.6

 

 

5,791.6

 

 

493.0

 

 

9

 

 

 

6,760.6

 

 

(476.1

)

 

(7

)

Time deposits

 

2,427.1

 

 

2,579.3

 

 

(152.3

)

 

(6

)

 

 

3,605.9

 

 

(1,178.9

)

 

(33

)

Brokered deposits

 

2,835.0

 

 

2,780.7

 

 

54.3

 

 

2

 

 

 

3,570.4

 

 

(735.4

)

 

(21

)

Total deposits

$

49,427.3

 

$

47,688.4

 

$

1,738.9

 

 

4

%

 

$

46,691.6

 

$

2,735.7

 

 

6

%

* Amounts may not total due to rounding

  • Total deposits ended the quarter at $49.4 billion, an increase of $1.7 billion or 4% sequentially.
    • Core transaction deposits increased $1.3 billion or 4% from the prior quarter.
    • Strong seasonal inflows supported a $493.0 million increase in public funds compared to the third quarter.
  • Total deposit costs declined 1 basis point from the third quarter to 12 basis points.

Income Statement Summary*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data)

 

4Q21

 

 

 

3Q21

 

 

Linked Quarter Change

 

Linked Quarter % Change

 

 

4Q20

 

Year/Year Change

 

Year/Year % Change

Net interest income

$

392,313

 

 

$

384,917

 

 

$

7,396

 

 

2

%

 

$

385,932

 

$

6,381

 

 

2

%

Non-interest revenue

 

117,068

 

 

 

114,955

 

 

 

2,113

 

 

2

 

 

 

114,761

 

 

2,307

 

 

2

 

Non-interest expense

 

295,207

 

 

 

267,032

 

 

 

28,175

 

 

11

 

 

 

302,498

 

 

(7,291

)

 

(2

)

(Reversal of) provision for credit losses

 

(55,210

)

 

 

(7,868

)

 

 

(47,342

)

 

602

 

 

 

11,066

 

 

(66,276

)

 

nm

 

Income before taxes

$

269,384

 

 

$

240,708

 

 

$

28,676

 

 

12

%

 

$

187,129

 

$

82,255

 

 

44

%

Income tax expense

 

68,983

 

 

 

53,935

 

 

 

15,048

 

 

28

 

 

 

36,720

 

 

32,263

 

 

88

 

Preferred stock dividends

 

8,291

 

 

 

8,291

 

 

 

 

 

 

 

 

8,291

 

 

 

 

 

Net income available to common shareholders

$

192,110

 

 

$

178,482

 

 

$

13,628

 

 

8

%

 

$

142,118

 

$

49,992

 

 

35

%

Weighted average common shares outstanding, diluted

 

146,793

 

 

 

147,701

 

 

 

(908

)

 

(1

)

 

 

148,725

 

 

(1,932

)

 

(1

)

Diluted earnings per share

$

1.31

 

 

$

1.21

 

 

$

0.10

 

 

8

%

 

$

0.96

 

$

0.35

 

 

37

%

Adjusted diluted earnings per share

$

1.35

 

 

$

1.20

 

 

$

0.15

 

 

12

%

 

$

1.08

 

$

0.27

 

 

25

%

* Amounts may not total due to rounding

Core Performance

  • Total taxable equivalent revenue was $510.3 million in the fourth quarter, up $9.7 million sequentially.
  • Net interest income increased $7.4 million or 2% compared to the prior quarter.
    • Growth in core loans and securities portfolio offset reduction in PPP fee accretion of $12.7 million, down $8.6 million from the third quarter.
  • Net interest margin was 2.96%, down 5 basis points from the previous quarter.
    • The margin was negatively impacted by a reduction of PPP fees which contributed 7 basis points to the quarter over quarter decline. This impact was offset by a 2 basis point positive impact from non-PPP related earning assets.
  • Non-interest revenue of $117.1 million increased $2.1 million or 2% compared to third quarter 2021.
    • Continued growth in wealth revenue and one-time $8 million BOLI benefit offset declines in mortgage revenue.
  • Non-interest expense increased $28.2 million or 11% sequentially. Adjusted non-interest expense increased $18.5 million or 7% from the prior quarter.
    • The increase in adjusted non-interest expense was driven by a combination of recurring expense increases as well as other discrete fourth quarter expenses.
  • Reversal of provision for credit losses of $55.2 million, a $47.3 million favorable change from the previous quarter.
    • Included in the provision was net charge-offs of $10.5 million offset by a reduction in the ACL ratio to 1.19% at quarter-end, or 1.21% excluding PPP loans.
  • The effective tax rate was 25.6% for the quarter.

Capital Ratios

 

 

 

 

 

 

 

4Q21

 

3Q21

 

4Q20

Common equity Tier 1 capital (CET1) ratio

9.49

%

*

9.58

%

 

9.66

%

Tier 1 capital ratio

10.65

 

*

10.79

 

 

10.95

 

Total risk-based capital ratio

12.60

 

*

12.92

 

 

13.42

 

Tier 1 leverage ratio

8.72

 

*

8.78

 

 

8.50

 

Tangible common equity ratio

7.52

 

 

7.68

 

 

7.66

 

* Ratios are preliminary

Capital

  • Preliminary CET1 ratio decreased 9 basis points sequentially to 9.49%.
    • Capital generated from earnings was offset by strong asset growth as well as capital deployed through dividends and share repurchases.
  • Preliminary total risk-based capital ratio of 12.60% decreased 32 basis points from the prior quarter, primarily from strong asset growth and reduction in the allowance for credit losses.

Fourth Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. ET on January 20, 2022. 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 Investor Day

Synovus will host an Investor Day presentation at 8:00 a.m. ET on February 8th, 2022. 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.

Synovus Financial Corp. is a financial services company based in Columbus, Georgia, with approximately $57 billion in assets. Synovus provides commercial and retail 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, and international banking through 279 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 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 growth strategy, expense and revenue initiatives, capital management, balance sheet management, 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 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, 2020, 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 revenue; adjusted tangible efficiency ratio; adjusted net income available to common shareholders; adjusted diluted earnings per 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; tangible common equity ratio; and adjusted pre-provision net revenue 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 TE revenue; efficiency ratio-TE; net income available to common shareholders; diluted earnings per share; return on average assets; return on average common equity; the ratio of total shareholders' equity to total assets; and income before income taxes, 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 revenue and adjusted non-interest revenue are measures used by management to evaluate total TE revenue and non-interest revenue exclusive of net investment securities gains (losses), gain on sale and changes in the fair value of private equity investments, net, and fair value adjustment on non-qualified deferred compensation. 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 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. 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. Adjusted pre-provision net revenue is used by management to evaluate pre-tax earnings exclusive of (reversal of) provision for credit losses, which can vary significantly, and other items that management believes are not indicative of ongoing operations and affect period-to-period comparisons. The computations of these measures are set forth in the tables below.

Reconciliation of Non-GAAP Financial Measures

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

4Q21

 

 

 

3Q21

 

 

 

4Q20

 

 

 

2021

 

 

 

2020

 

Adjusted non-interest revenue

 

 

 

 

 

 

 

 

 

Total non-interest revenue

$

117,068

 

 

$

114,955

 

 

$

114,761

 

 

$

450,066

 

 

$

506,513

 

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

 

(230

)

 

 

(962

)

 

 

(2,337

)

 

 

799

 

 

 

(78,931

)

Subtract: Gain on sale and fair value increase, net of private equity investments

 

 

 

 

 

 

 

(63

)

 

 

 

 

 

(4,775

)

Subtract/add: Fair value adjustment on non-qualified deferred compensation

 

(995

)

 

 

97

 

 

 

(1,772

)

 

 

(2,816

)

 

 

(2,310

)

Adjusted non-interest revenue

$

115,843

 

 

$

114,090

 

 

$

110,589

 

 

$

448,049

 

 

$

420,497

 

 

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense

 

 

 

 

 

 

 

 

 

Total non-interest expense

$

295,207

 

 

$

267,032

 

 

$

302,498

 

 

$

1,099,904

 

 

$

1,179,574

 

Add/subtract: Earnout liability adjustments

 

 

 

 

243

 

 

 

 

 

 

(507

)

 

 

(4,908

)

Subtract: Goodwill impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

(44,877

)

Subtract: Restructuring charges

 

(5,958

)

 

 

(319

)

 

 

(18,068

)

 

 

(7,223

)

 

 

(26,991

)

Subtract: Valuation adjustment to Visa derivative

 

(2,656

)

 

 

 

 

 

(890

)

 

 

(2,656

)

 

 

(890

)

Subtract: Loss on early extinguishment of debt

 

 

 

 

 

 

 

(8,409

)

 

 

 

 

 

(10,466

)

Subtract/add: Fair value adjustment on non-qualified deferred compensation

 

(995

)

 

 

97

 

 

 

(1,772

)

 

 

(2,816

)

 

 

(2,310

)

Adjusted non-interest expense

$

285,598

 

 

$

267,053

 

 

$

273,359

 

 

$

1,086,702

 

 

$

1,089,132

 

 

 

 

 

 

 

 

 

 

 

Adjusted revenue and adjusted tangible efficiency ratio

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense

$

285,598

 

 

$

267,053

 

 

$

273,359

 

 

$

1,086,702

 

 

$

1,089,132

 

Subtract: Amortization of intangibles

 

(2,379

)

 

 

(2,379

)

 

 

(2,640

)

 

 

(9,516

)

 

 

(10,560

)

Adjusted tangible non-interest expense

$

283,219

 

 

$

264,674

 

 

$

270,719

 

 

$

1,077,186

 

 

$

1,078,572

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$

392,313

 

 

$

384,917

 

 

$

385,932

 

 

$

1,532,947

 

 

$

1,512,748

 

Add: Tax equivalent adjustment

 

884

 

 

 

736

 

 

 

821

 

 

 

3,185

 

 

 

3,424

 

Add: Total non-interest revenue

 

117,068

 

 

 

114,955

 

 

 

114,761

 

 

 

450,066

 

 

 

506,513

 

Total TE revenue

 

510,265

 

 

 

500,608

 

 

 

501,514

 

 

 

1,986,198

 

 

 

2,022,685

 

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

 

(230

)

 

 

(962

)

 

 

(2,337

)

 

 

799

 

 

 

(78,931

)

Subtract: Gain on sale and fair value increase, net of private equity investments

 

 

 

 

 

 

 

(63

)

 

 

 

 

 

(4,775

)

Subtract/add: Fair value adjustment on non-qualified deferred compensation

 

(995

)

 

 

97

 

 

 

(1,772

)

 

 

(2,816

)

 

 

(2,310

)

Adjusted revenue

$

509,040

 

 

$

499,743

 

 

$

497,342

 

 

$

1,984,181

 

 

$

1,936,669

 

Efficiency ratio-TE

 

57.85

%

 

 

53.34

%

 

 

60.32

%

 

 

55.38

%

 

 

58.32

%

Adjusted tangible efficiency ratio

 

55.64

 

 

 

52.96

 

 

 

54.43

 

 

 

54.29

 

 

 

55.69

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures, continued

(in thousands, except per share data)

 

4Q21

 

 

 

3Q21

 

 

 

4Q20

 

 

 

2021

 

 

 

2020

 

Adjusted return on average assets

 

 

 

 

 

 

 

 

 

Net income

$

200,401

 

 

$

186,773

 

 

$

150,409

 

 

$

760,467

 

 

$

373,695

 

Subtract/add: Earnout liability adjustments

 

 

 

 

(243

)

 

 

 

 

 

507

 

 

 

4,908

 

Add: Goodwill impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

44,877

 

Add: Restructuring charges

 

5,958

 

 

 

319

 

 

 

18,068

 

 

 

7,223

 

 

 

26,991

 

Add: Valuation adjustment to Visa derivative

 

2,656

 

 

 

 

 

 

890

 

 

 

2,656

 

 

 

890

 

Add: Loss on early extinguishment of debt

 

 

 

 

 

 

 

8,409

 

 

 

 

 

 

10,466

 

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

 

(230

)

 

 

(962

)

 

 

(2,337

)

 

 

799

 

 

 

(78,931

)

Subtract: Gain on sale and fair value increase, net of private equity investments

 

 

 

 

 

 

 

(63

)

 

 

 

 

 

(4,775

)

Subtract/add: Tax effect of adjustments(1)

 

(2,121

)

 

 

164

 

 

 

(6,467

)

 

 

(2,702

)

 

 

11,748

 

Adjusted net income

$

206,664

 

 

$

186,051

 

 

$

168,909

 

 

$

768,950

 

 

$

389,869

 

Net income annualized

$

795,069

 

 

$

741,002

 

 

$

598,366

 

 

$

760,467

 

 

$

373,695

 

Adjusted net income annualized

$

819,917

 

 

$

738,137

 

 

$

671,964

 

 

$

768,950

 

 

$

389,869

 

Total average assets

$

56,911,929

 

 

$

55,326,260

 

 

$

53,833,909

 

 

$

55,368,481

 

 

$

52,138,038

 

Return on average assets

 

1.40

%

 

 

1.34

%

 

 

1.11

%

 

 

1.37

%

 

 

0.72

%

Adjusted return on average assets

 

1.44

 

 

 

1.33

 

 

 

1.25

 

 

 

1.39

 

 

 

0.75

 

 

 

 

 

 

 

 

 

 

 

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

Net income available to common shareholders

$

192,110

 

 

$

178,482

 

 

$

142,118

 

 

$

727,304

 

 

$

340,532

 

Subtract/add: Earnout liability adjustments

 

 

 

 

(243

)

 

 

 

 

 

507

 

 

 

4,908

 

Add: Goodwill impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

44,877

 

Add: Restructuring charges

 

5,958

 

 

 

319

 

 

 

18,068

 

 

 

7,223

 

 

 

26,991

 

Add: Valuation adjustment to Visa derivative

 

2,656

 

 

 

 

 

 

890

 

 

 

2,656

 

 

 

890

 

Add: Loss on early extinguishment of debt

 

 

 

 

 

 

 

8,409

 

 

 

 

 

 

10,466

 

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

 

(230

)

 

 

(962

)

 

 

(2,337

)

 

 

799

 

 

 

(78,931

)

Subtract: Gain on sale and fair value increase, net of private equity investments

 

 

 

 

 

 

 

(63

)

 

 

 

 

 

(4,775

)

Subtract/add: Tax effect of adjustments(1)

 

(2,121

)

 

 

164

 

 

 

(6,467

)

 

 

(2,702

)

 

 

11,748

 

Adjusted net income available to common shareholders

$

198,373

 

 

$

177,760

 

 

$

160,618

 

 

$

735,787

 

 

$

356,706

 

Weighted average common shares outstanding, diluted

 

146,793

 

 

 

147,701

 

 

 

148,725

 

 

 

148,495

 

 

 

148,210

 

Net income per common share, diluted

$

1.31

 

 

$

1.21

 

 

$

0.96

 

 

$

4.90

 

 

$

2.30

 

Adjusted net income per common share, diluted

 

1.35

 

 

 

1.20

 

 

 

1.08

 

 

 

4.95

 

 

 

2.41

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures, continued

(dollars in thousands)

 

4Q21

 

 

 

3Q21

 

 

 

4Q20

 

 

 

2021

 

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

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

$

192,110

 

 

$

178,482

 

 

$

142,118

 

 

$

727,304

 

 

$

340,532

 

Subtract/add: Earnout liability adjustments

 

 

 

 

(243

)

 

 

 

 

 

507

 

 

 

4,908

 

Add: Goodwill impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

44,877

 

Add: Restructuring charges

 

5,958

 

 

 

319

 

 

 

18,068

 

 

 

7,223

 

 

 

26,991

 

Add: Valuation adjustment to Visa derivative

 

2,656

 

 

 

 

 

 

890

 

 

 

2,656

 

 

 

890

 

Add: Loss on early extinguishment of debt

 

 

 

 

 

 

 

8,409

 

 

 

 

 

 

10,466

 

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

 

(230

)

 

 

(962

)

 

 

(2,337

)

 

 

799

 

 

 

(78,931

)

Subtract: Gain on sale and fair value increase, net of private equity investments

 

 

 

 

 

 

 

(63

)

 

 

 

 

 

(4,775

)

Subtract/add: Tax effect of adjustments(1)

 

(2,121

)

 

 

164

 

 

 

(6,467

)

 

 

(2,702

)

 

 

11,748

 

Adjusted net income available to common shareholders

$

198,373

 

 

$

177,760

 

 

$

160,618

 

 

$

735,787

 

 

$

356,706

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income available to common shareholders annualized

$

787,023

 

 

$

705,243

 

 

$

638,980

 

 

$

735,787

 

 

$

356,706

 

Add: Amortization of intangibles, tax effected

 

7,050

 

 

 

7,050

 

 

 

7,782

 

 

 

7,108

 

 

 

7,825

 

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

$

794,073

 

 

$

712,293

 

 

$

646,762

 

 

$

742,895

 

 

$

364,531

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders annualized

$

762,176

 

 

$

708,108

 

 

$

565,382

 

 

$

727,304

 

 

$

340,532

 

Add: Amortization of intangibles, tax effected

 

7,050

 

 

 

7,050

 

 

 

7,782

 

 

 

7,108

 

 

 

7,825

 

Net income available to common shareholders excluding amortization of intangibles annualized

$

769,226

 

 

$

715,158

 

 

$

573,164

 

 

$

734,412

 

 

$

348,357

 

 

 

 

 

 

 

 

 

 

 

Total average shareholders' equity less preferred stock

$

4,730,828

 

 

$

4,734,754

 

 

$

4,594,199

 

 

$

4,674,833

 

 

$

4,534,935

 

Subtract: Goodwill

 

(452,390

)

 

 

(452,390

)

 

 

(452,390

)

 

 

(452,390

)

 

 

(485,987

)

Subtract: Other intangible assets, net

 

(36,805

)

 

 

(39,109

)

 

 

(46,511

)

 

 

(40,307

)

 

 

(50,427

)

Total average tangible shareholders' equity less preferred stock

$

4,241,633

 

 

$

4,243,255

 

 

$

4,095,298

 

 

$

4,182,136

 

 

$

3,998,521

 

Return on average common equity

 

16.11

%

 

 

14.96

%

 

 

12.31

%

 

 

15.56

%

 

 

7.51

%

Adjusted return on average common equity

 

16.64

 

 

 

14.90

 

 

 

13.91

 

 

 

15.74

 

 

 

7.87

 

Return on average tangible common equity

 

18.14

 

 

 

16.85

 

 

 

14.00

 

 

 

17.56

 

 

 

8.71

 

Adjusted return on average tangible common equity

 

18.72

 

 

 

16.79

 

 

 

15.79

 

 

 

17.76

 

 

 

9.12

 

Reconciliation of Non-GAAP Financial Measures, continued

 

December 31,

 

September 30,

 

December 31,

(dollars in thousands)

 

2021

 

 

 

2021

 

 

 

2020

 

Tangible common equity ratio

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

57,317,226

 

 

$

55,509,129

 

 

$

54,394,159

 

Subtract: Goodwill

 

(452,390

)

 

 

(452,390

)

 

 

(452,390

)

Subtract: Other intangible assets, net

 

(35,596

)

 

 

(37,975

)

 

 

(45,112

)

Tangible assets

$

56,829,240

 

 

$

55,018,764

 

 

$

53,896,657

 

 

 

 

 

 

 

Total shareholders’ equity

$

5,296,800

 

 

$

5,252,802

 

 

$

5,161,334

 

Subtract: Goodwill

 

(452,390

)

 

 

(452,390

)

 

 

(452,390

)

Subtract: Other intangible assets, net

 

(35,596

)

 

 

(37,975

)

 

 

(45,112

)

Subtract: Preferred stock, no par value

 

(537,145

)

 

 

(537,145

)

 

 

(537,145

)

Tangible common equity

$

4,271,669

 

 

$

4,225,292

 

 

$

4,126,687

 

Total shareholders’ equity to total assets ratio

 

9.24

%

 

 

9.46

%

 

 

9.49

%

Tangible common equity ratio

 

7.52

 

 

 

7.68

 

 

 

7.66

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

2021

 

 

 

2020

 

 

 

Adjusted pre-provision net revenue

 

 

 

 

 

Taxable equivalent net interest income

$

1,536,132

 

 

$

1,516,172

 

 

 

Add: Adjusted non-interest revenue

 

448,049

 

 

 

420,497

 

 

 

Subtract: Adjusted non-interest expense

 

1,086,702

 

 

 

1,089,132

 

 

 

Adjusted pre-provision net revenue

$

897,479

 

 

$

847,537

 

 

 

 

 

 

 

 

 

Income before income taxes

$

989,360

 

 

$

484,665

 

 

 

 

(1) An assumed marginal tax rate of 25.3% for 2021 and 25.9% for 2020 was applied.

Synovus

 

 

 

 

 

 

INCOME STATEMENT DATA

(Unaudited)

 

Years Ended

(Dollars in thousands, except per share data)

 

December 31,

 

 

2021

 

2020

 

% Change

 

 

 

 

 

 

 

Interest income

 

$

1,653,343

 

 

$

1,804,495

 

 

(8

) %

Interest expense

 

 

120,396

 

 

 

291,747

 

 

(59

)

 

 

 

 

 

 

 

Net interest income

 

 

1,532,947

 

 

 

1,512,748

 

 

1

 

(Reversal of) provision for credit losses

 

 

(106,251

)

 

 

355,022

 

 

nm

 

 

 

 

 

 

 

 

Net interest income after provision for credit losses

 

 

1,639,198

 

 

 

1,157,726

 

 

42

 

 

 

 

 

 

 

 

Non-interest revenue:

 

 

 

 

 

 

Service charges on deposit accounts

 

 

86,310

 

 

 

73,132

 

 

18

 

Fiduciary and asset management fees

 

 

77,147

 

 

 

63,251

 

 

22

 

Card fees

 

 

51,399

 

 

 

42,702

 

 

20

 

Brokerage revenue

 

 

56,439

 

 

 

44,781

 

 

26

 

Mortgage banking income

 

 

54,371

 

 

 

91,413

 

 

(41

)

Capital markets income

 

 

26,118

 

 

 

27,336

 

 

(4

)

Income from bank-owned life insurance

 

 

38,019

 

 

 

31,297

 

 

21

 

Investment securities (losses) gains, net

 

 

(799

)

 

 

78,931

 

 

nm

 

Other non-interest revenue

 

 

61,062

 

 

 

53,670

 

 

14

 

 

 

 

 

 

 

 

Total non-interest revenue

 

 

450,066

 

 

 

506,513

 

 

(11

)

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

Salaries and other personnel expense

 

 

649,426

 

 

 

618,214

 

 

5

 

Net occupancy, equipment, and software expense

 

 

169,222

 

 

 

169,658

 

 

 

Third-party processing and other services

 

 

86,688

 

 

 

87,992

 

 

(1

)

Professional fees

 

 

32,785

 

 

 

56,899

 

 

(42

)

FDIC insurance and other regulatory fees

 

 

22,355

 

 

 

25,210

 

 

(11

)

Other operating expenses

 

 

139,428

 

 

 

221,601

 

 

(37

)

 

 

 

 

 

 

 

Total non-interest expense

 

 

1,099,904

 

 

 

1,179,574

 

 

(7

)

 

 

 

 

 

 

 

Income before income taxes

 

 

989,360

 

 

 

484,665

 

 

104

 

Income tax expense

 

 

228,893

 

 

 

110,970

 

 

106

 

 

 

 

 

 

 

 

Net income

 

 

760,467

 

 

 

373,695

 

 

103

 

 

 

 

 

 

 

 

Less: Preferred stock dividends

 

 

33,163

 

 

 

33,163

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

727,304

 

 

$

340,532

 

 

114

%

 

 

 

 

 

 

 

Net income per common share, basic

 

 

4.95

 

 

 

2.31

 

 

114

%

 

 

 

 

 

 

 

Net income per common share, diluted

 

 

4.90

 

 

 

2.30

 

 

113

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

 

1.32

 

 

 

1.32

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.37

%

 

 

0.72

%

 

65 bps

 

Return on average common equity

 

 

15.56

 

 

 

7.51

 

 

805

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

 

147,041

 

 

 

147,415

 

 

%

Weighted average common shares outstanding, diluted

 

 

148,495

 

 

 

148,210

 

 

 

 

 

 

 

 

 

 

nm - not meaningful

 

 

 

 

 

 

bps - basis points

 

 

 

 

 

 

 

 

 

 

 

 

 

Synovus

INCOME STATEMENT DATA

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

2021

 

2020

 

Fourth Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

 

Fourth Quarter

 

21 vs '20

 

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

418,279

 

 

412,504

 

 

412,743

 

 

409,817

 

 

433,479

 

(4

) %

Interest expense

 

25,966

 

 

27,587

 

 

30,883

 

 

35,960

 

 

47,547

 

(45

)

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

392,313

 

 

384,917

 

 

381,860

 

 

373,857

 

 

385,932

 

2

 

(Reversal of) provision for credit losses

 

(55,210

)

 

(7,868

)

 

(24,598

)

 

(18,575

)

 

11,066

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for credit losses

 

447,523

 

 

392,785

 

 

406,458

 

 

392,432

 

 

374,866

 

19

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest revenue:

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

22,221

 

 

22,641

 

 

21,414

 

 

20,033

 

 

19,063

 

17

 

Fiduciary and asset management fees

 

20,602

 

 

19,786

 

 

18,805

 

 

17,954

 

 

17,242

 

19

 

Card fees

 

12,861

 

 

13,238

 

 

13,304

 

 

11,996

 

 

11,743

 

10

 

Brokerage revenue

 

14,795

 

 

14,745

 

 

13,926

 

 

12,974

 

 

11,794

 

25

 

Mortgage banking income

 

7,059

 

 

11,155

 

 

13,842

 

 

22,315

 

 

24,426

 

(71

)

Capital markets income

 

7,188

 

 

8,089

 

 

3,335

 

 

7,505

 

 

4,352

 

65

 

Income from bank-owned life insurance

 

15,168

 

 

6,820

 

 

7,188

 

 

8,843

 

 

9,725

 

56

 

Investment securities gains (losses), net

 

230

 

 

962

 

 

 

 

(1,990

)

 

2,337

 

nm

 

Other non-interest revenue

 

16,944

 

 

17,519

 

 

15,273

 

 

11,326

 

 

14,079

 

20

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest revenue

 

117,068

 

 

114,955

 

 

107,087

 

 

110,956

 

 

114,761

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

Salaries and other personnel expense

 

167,018

 

 

160,364

 

 

160,567

 

 

161,477

 

 

153,946

 

8

 

Net occupancy, equipment, and software expense

 

42,780

 

 

43,483

 

 

41,825

 

 

41,134

 

 

44,183

 

(3

)

Third-party processing and other services

 

22,791

 

 

19,446

 

 

24,419

 

 

20,032

 

 

20,799

 

10

 

Professional fees

 

9,014

 

 

6,739

 

 

7,947

 

 

9,084

 

 

17,541

 

(49

)

FDIC insurance and other regulatory fees

 

6,016

 

 

5,212

 

 

5,547

 

 

5,579

 

 

6,288

 

(4

)

Other operating expenses

 

47,588

 

 

31,788

 

 

30,226

 

 

29,828

 

 

59,741

 

(20

)

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest expense

 

295,207

 

 

267,032

 

 

270,531

 

 

267,134

 

 

302,498

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

269,384

 

 

240,708

 

 

243,014

 

 

236,254

 

 

187,129

 

44

 

Income tax expense

 

68,983

 

 

53,935

 

 

56,814

 

 

49,161

 

 

36,720

 

88

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

200,401

 

 

186,773

 

 

186,200

 

 

187,093

 

 

150,409

 

33

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Preferred stock dividends

 

8,291

 

 

8,291

 

 

8,291

 

 

8,291

 

 

8,291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

$

192,110

 

 

178,482

 

 

177,909

 

 

178,802

 

 

142,118

 

35

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, basic

$

1.32

 

 

1.22

 

 

1.20

 

 

1.20

 

 

0.96

 

37

%

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, diluted

 

1.31

 

 

1.21

 

 

1.19

 

 

1.19

 

 

0.96

 

37

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

0.33

 

 

0.33

 

 

0.33

 

 

0.33

 

 

0.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets *

 

1.40

%

 

1.34

 

 

1.36

 

 

1.40

 

 

1.11

 

29 bps

 

Return on average common equity *

 

16.11

 

 

14.96

 

 

15.40

 

 

15.77

 

 

12.31

 

380

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

145,316

 

 

146,308

 

 

148,113

 

 

148,467

 

 

147,744

 

(2

) %

Weighted average common shares outstanding, diluted

 

146,793

 

 

147,701

 

 

149,747

 

 

149,780

 

 

148,725

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

nm - not meaningful

 

 

 

 

 

 

 

 

 

 

 

bps - basis points

 

 

 

 

 

 

 

 

 

 

 

* - ratios are annualized

 

 

 

 

 

 

 

 

 

 

 

Synovus

 

 

 

 

 

 

BALANCE SHEET DATA

 

December 31, 2021

 

September 30, 2021

 

December 31, 2020

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Cash and due from banks

 

$

432,925

 

 

$

483,035

 

 

$

531,579

 

Interest-bearing funds with Federal Reserve Bank

 

 

2,479,006

 

 

 

2,103,497

 

 

 

3,586,565

 

Interest earning deposits with banks

 

 

25,535

 

 

 

23,261

 

 

 

20,944

 

Federal funds sold and securities purchased under resale agreements

 

 

72,387

 

 

 

77,627

 

 

 

113,829

 

Cash and cash equivalents

 

 

3,009,853

 

 

 

2,687,420

 

 

 

4,252,917

 

 

 

 

 

 

 

 

Investment securities available for sale, at fair value

 

 

10,918,329

 

 

 

10,481,071

 

 

 

7,962,438

 

Loans held for sale ($108,198, $152,258, and $216,647 measured at fair value,

respectively)

 

 

750,642

 

 

 

550,948

 

 

 

760,123

 

 

 

 

 

 

 

 

Loans, net of deferred fees and costs

 

 

39,311,958

 

 

 

38,341,030

 

 

 

38,252,984

 

Allowance for loan losses

 

 

(427,597

)

 

 

(492,243

)

 

 

(605,736

)

Loans, net

 

 

38,884,361

 

 

 

37,848,787

 

 

 

37,647,248

 

 

 

 

 

 

 

 

Cash surrender value of bank-owned life insurance

 

 

1,068,616

 

 

 

1,065,256

 

 

 

1,049,373

 

Premises, equipment, and software, net

 

 

407,241

 

 

 

423,933

 

 

 

463,959

 

Goodwill

 

 

452,390

 

 

 

452,390

 

 

 

452,390

 

Other intangible assets, net

 

 

35,596

 

 

 

37,975

 

 

 

45,112

 

Other assets

 

 

1,790,198

 

 

 

1,961,349

 

 

 

1,760,599

 

Total assets

 

$

57,317,226

 

 

$

55,509,129

 

 

$

54,394,159

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Non-interest-bearing deposits

 

$

16,392,653

 

 

$

15,787,882

 

 

$

13,477,854

 

Interest-bearing deposits

 

 

33,034,623

 

 

 

31,900,537

 

 

 

33,213,717

 

 

 

 

 

 

 

 

Total deposits

 

 

49,427,276

 

 

 

47,688,419

 

 

 

46,691,571

 

 

 

 

 

 

 

 

Federal funds purchased and securities sold under repurchase agreements

 

 

264,133

 

 

 

262,548

 

 

 

227,922

 

Other short-term borrowings

 

 

197

 

 

 

 

 

 

7,717

 

Long-term debt

 

 

1,204,229

 

 

 

1,203,761

 

 

 

1,202,494

 

Other liabilities

 

 

1,124,591

 

 

 

1,101,599

 

 

 

1,103,121

 

Total liabilities

 

 

52,020,426

 

 

 

50,256,327

 

 

 

49,232,825

 

 

 

 

 

 

 

 

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 169,383,758, 169,170,589, and 168,132,522 outstanding 145,010,086, 145,483,994, and 148,039,495

 

 

169,384

 

 

 

169,171

 

 

 

168,133

 

Additional paid-in capital

 

 

3,892,464

 

 

 

3,883,289

 

 

 

3,851,208

 

Treasury stock, at cost – 24,373,672, 23,686,595, and 20,093,027 shares

 

 

(931,497

)

 

 

(898,707

)

 

 

(731,806

)

Accumulated other comprehensive (loss) income, net

 

 

(82,321

)

 

 

(5,462

)

 

 

158,635

 

Retained earnings

 

 

1,711,625

 

 

 

1,567,366

 

 

 

1,178,019

 

Total shareholders’ equity

 

 

5,296,800

 

 

 

5,252,802

 

 

 

5,161,334

 

Total liabilities and shareholders' equity

 

$

57,317,226

 

 

$

55,509,129

 

 

$

54,394,159

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES, INTEREST, AND YIELDS/RATES

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

2020

(dollars in thousands)

Average Balance

 

Interest

 

Yield/

Rate

 

Average Balance

 

Interest

 

Yield/

Rate

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

Taxable loans, net(1)(2)

$

37,644,066

 

 

$

1,470,587

 

3.91

%

 

$

38,597,852

 

 

$

1,587,606

 

4.11

%

 

Tax-exempt loans, net(1)(2)(3)

 

506,779

 

 

 

15,165

 

2.99

 

 

 

497,467

 

 

 

16,274

 

3.27

 

 

Less: Allowance for loan losses

 

(537,324

)

 

 

 

 

 

 

(513,743

)

 

 

 

 

 

Loans, net

 

37,613,521

 

 

 

1,485,752

 

3.95

 

 

 

38,581,576

 

 

 

1,603,880

 

4.16

 

 

Investment securities available for sale

 

9,603,343

 

 

 

140,077

 

1.46

 

 

 

7,006,894

 

 

 

178,582

 

2.55

 

 

Trading account assets

 

5,613

 

 

 

87

 

1.55

 

 

 

6,593

 

 

 

121

 

1.84

 

 

Other earning assets(4)

 

3,002,110

 

 

 

3,912

 

0.13

 

 

 

1,588,150

 

 

 

3,185

 

0.20

 

 

FHLB and Federal Reserve Bank stock

 

159,176

 

 

 

2,891

 

1.82

 

 

 

223,606

 

 

 

7,073

 

3.16

 

 

Mortgage loans held for sale

 

203,840

 

 

 

5,935

 

2.91

 

 

 

215,788

 

 

 

6,412

 

2.97

 

 

Other loans held for sale

 

580,162

 

 

 

17,874

 

3.04

 

 

 

265,764

 

 

 

8,666

 

3.21

 

 

Total interest earning assets

 

51,167,765

 

 

$

1,656,528

 

3.24

%

 

 

47,888,371

 

 

$

1,807,919

 

3.78

%

 

Cash and due from banks

 

561,170

 

 

 

 

 

 

 

531,963

 

 

 

 

 

 

Premises and equipment

 

445,333

 

 

 

 

 

 

 

481,371

 

 

 

 

 

 

Other real estate

 

1,522

 

 

 

 

 

 

 

9,740

 

 

 

 

 

 

Cash surrender value of bank-owned life insurance

 

1,058,966

 

 

 

 

 

 

 

1,003,560

 

 

 

 

 

 

Other assets(5)

 

2,133,725

 

 

 

 

 

 

 

2,223,033

 

 

 

 

 

 

Total assets

$

55,368,481

 

 

 

 

 

 

$

52,138,038

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$

8,701,078

 

 

$

9,844

 

0.11

%

 

$

7,510,429

 

 

$

19,034

 

0.25

%

 

Money market accounts

 

17,496,230

 

 

 

31,391

 

0.18

 

 

 

14,690,298

 

 

 

72,312

 

0.49

 

 

Savings deposits

 

1,335,269

 

 

 

229

 

0.02

 

 

 

1,056,777

 

 

 

247

 

0.02

 

 

Time deposits

 

4,770,002

 

 

 

33,455

 

0.70

 

 

 

7,853,325

 

 

 

126,184

 

1.61

 

 

Federal funds purchased and securities sold under repurchase agreements

 

210,949

 

 

 

128

 

0.06

 

 

 

192,967

 

 

 

274

 

0.14

 

 

Other short-term borrowings

 

 

 

 

 

 

 

 

492,697

 

 

 

7,643

 

1.53

 

 

Long-term debt

 

1,203,282

 

 

 

45,349

 

3.77

 

 

 

2,322,717

 

 

 

66,053

 

2.83

 

 

Total interest-bearing liabilities

 

33,716,810

 

 

$

120,396

 

0.35

%

 

 

34,119,210

 

 

$

291,747

 

0.84

%

 

Non-interest-bearing demand deposits

 

15,304,120

 

 

 

 

 

 

 

11,925,114

 

 

 

 

 

 

Other liabilities

 

1,135,573

 

 

 

 

 

 

 

1,021,633

 

 

 

 

 

 

Shareholders' equity

 

5,211,978

 

 

 

 

 

 

 

5,072,081

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

55,368,481

 

 

 

 

 

 

$

52,138,038

 

 

 

 

 

 

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

 

 

$

1,536,132

 

3.01

%

 

 

 

$

1,516,172

 

3.18

%

 

Less: taxable-equivalent adjustment

 

 

 

3,185

 

 

 

 

 

 

3,424

 

 

 

Net interest income

 

 

$

1,532,947

 

 

 

 

 

$

1,512,748

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.

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

2.

Interest income includes net loan fees as follows: 2021 — $115.5 million and 2020 — $76.1 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 $46.0 million and $197.5 million for the years ended December 31, 2021 and 2020, respectively.

6.

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

Synovus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES, INTEREST, AND YIELDS/RATES

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter 2021

 

Third Quarter 2021

 

Fourth Quarter 2020

(dollars in thousands)

Average Balance

 

Interest

 

Yield/

Rate

 

Average Balance

 

Interest

 

Yield/

Rate

 

Average Balance

 

Interest

 

Yield/

Rate

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable loans, net(1)(2)

$

37,820,821

 

 

$

366,141

 

3.86

%

 

$

37,055,648

 

 

$

366,554

 

3.84

%

 

$

38,379,396

 

 

$

383,766

 

4.04

%

Tax-exempt loans, net(1)(2)(3)

 

544,776

 

 

 

4,208

 

3.06

 

 

 

478,485

 

 

 

3,505

 

2.91

 

 

 

505,155

 

 

 

3,908

 

3.08

 

Less: Allowance for loan losses

 

(474,972

)

 

 

 

 

 

 

(514,828

)

 

 

 

 

 

 

(595,547

)

 

 

 

 

Loans, net

 

37,890,625

 

 

 

370,349

 

3.88

 

 

 

37,019,305

 

 

 

370,059

 

3.97

 

 

 

38,289,004

 

 

 

387,674

 

4.03

 

Investment securities available for sale

 

10,884,571

 

 

 

41,447

 

1.52

 

 

 

9,876,651

 

 

 

35,876

 

1.45

 

 

 

7,493,822

 

 

 

38,792

 

2.07

 

Trading account assets

 

11,280

 

 

 

42

 

1.50

 

 

 

5,192

 

 

 

15

 

1.15

 

 

 

8,496

 

 

 

22

 

1.03

 

Other earning assets(4)

 

3,186,271

 

 

 

1,208

 

0.15

 

 

 

3,271,501

 

 

 

1,247

 

0.15

 

 

 

2,716,645

 

 

 

708

 

0.10

 

FHLB and Federal Reserve Bank stock

 

159,933

 

 

 

919

 

2.30

 

 

 

159,741

 

 

 

503

 

1.26

 

 

 

162,537

 

 

 

1,073

 

2.64

 

Mortgage loans held for sale

 

130,786

 

 

 

1,009

 

3.09

 

 

 

196,032

 

 

 

1,410

 

2.88

 

 

 

309,278

 

 

 

2,121

 

2.74

 

Other loans held for sale

 

518,992

 

 

 

4,189

 

3.16

 

 

 

527,736

 

 

 

4,130

 

3.06

 

 

 

544,301

 

 

 

3,910

 

2.81

 

Total interest earning assets

 

52,782,458

 

 

$

419,163

 

3.16

%

 

 

51,056,158

 

 

$

413,240

 

3.22

%

 

 

49,524,083

 

 

$

434,300

 

3.49

%

Cash and due from banks

 

541,788

 

 

 

 

 

 

 

611,783

 

 

 

 

 

 

 

529,447

 

 

 

 

 

Premises and equipment

 

421,577

 

 

 

 

 

 

 

447,046

 

 

 

 

 

 

 

468,208

 

 

 

 

 

Other real estate

 

1,351

 

 

 

 

 

 

 

1,513

 

 

 

 

 

 

 

3,878

 

 

 

 

 

Cash surrender value of bank-owned life insurance

 

1,067,004

 

 

 

 

 

 

 

1,061,478

 

 

 

 

 

 

 

1,046,216

 

 

 

 

 

Other assets(5)

 

2,097,751

 

 

 

 

 

 

 

2,148,282

 

 

 

 

 

 

 

2,262,077

 

 

 

 

 

Total assets

$

56,911,929

 

 

 

 

 

 

$

55,326,260

 

 

 

 

 

 

$

53,833,909

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$

9,165,054

 

 

$

2,238

 

0.10

%

 

$

8,463,325

 

 

$

2,192

 

0.10

%

 

$

8,531,415

 

 

$

3,473

 

0.16

%

Money market accounts

 

17,842,425

 

 

 

6,523

 

0.15

 

 

 

17,460,069

 

 

 

7,079

 

0.16

 

 

 

16,390,253

 

 

 

10,513

 

0.26

 

Savings deposits

 

1,408,858

 

 

 

65

 

0.02

 

 

 

1,377,089

 

 

 

60

 

0.02

 

 

 

1,147,667

 

 

 

43

 

0.01

 

Time deposits

 

4,155,681

 

 

 

5,618

 

0.54

 

 

 

4,420,805

 

 

 

6,756

 

0.61

 

 

 

6,338,533

 

 

 

18,078

 

1.13

 

Federal funds purchased and securities sold under repurchase agreements

 

227,664

 

 

 

24

 

0.04

 

 

 

202,525

 

 

 

35

 

0.07

 

 

 

174,316

 

 

 

32

 

0.07

 

Other short-term borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

1,203,959

 

 

 

11,498

 

3.82

 

 

 

1,203,500

 

 

 

11,465

 

3.81

 

 

 

1,552,791

 

 

 

15,408

 

3.96

 

Total interest-bearing liabilities

 

34,003,641

 

 

$

25,966

 

0.30

%

 

 

33,127,313

 

 

$

27,587

 

0.33

%

 

 

34,134,975

 

 

$

47,547

 

0.55

%

Non-interest-bearing demand deposits

 

16,545,203

 

 

 

 

 

 

 

15,755,929

 

 

 

 

 

 

 

13,566,112

 

 

 

 

 

Other liabilities

 

1,095,112

 

 

 

 

 

 

 

1,171,119