Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended March 31, 2016.

First Quarter Highlights
  • Net income available to common shareholders for the first quarter 2016 was $50.0 million or $0.39 per diluted share as compared to $55.8 million, or $0.43 per diluted share for the previous quarter and $51.4 million, or $0.38 per diluted share for the first quarter 2015.
    • Adjusted diluted earnings per share of $0.43 excluding loss on early extinguishment of debt, litigation contingency/settlement expense, and restructuring charges, up 14.6% from $0.38 per adjusted diluted share for the first quarter 2015.
  • Total loans grew $328.6 million or 5.9% annualized from the previous quarter and $1.65 billion or 7.8% as compared to the first quarter 2015.
  • Average core deposits grew $55.9 million or 1.0% annualized from the previous quarter and $2.09 billion or 10.5% as compared to the first quarter 2015.
  • Total revenues 1 of $281.3 million, up $2.5 million or 0.9% from the previous quarter and 4.8% from the first quarter 2015.
  • Net interest margin of 3.27%, up 9 basis points from the previous quarter and down 1 basis point from the first quarter 2015.
  • Credit quality metrics remained favorable with a net charge-off ratio of 13 basis points, up 7 basis points from the previous quarter and down 10 basis points from the first quarter 2015.
  • The company continued to return capital to shareholders during the quarter, acquiring an additional $110.9 million of common stock.
    • From inception of the existing $300 million repurchase program announced in October 2015 through April 18, 2016, the company has repurchased $158.5 million of common stock, reducing the total share count by 5.4 million.
  • During the quarter, Synovus paid a common stock dividend of $0.12 per share, representing a 20% increase from the fourth quarter 2015 dividend.

"During the first quarter, we demonstrated continued overall progress through increased revenue, driven by balance sheet growth and net interest margin expansion, as well as through improved efficiency. We also continued our return of capital to shareholders, reaching the halfway mark of our current $300 million common share repurchase program," said Kessel D. Stelling, Synovus Chairman and CEO. "We are making ongoing investments in talent to broaden relationships and increase share in all business lines, especially in key high-growth markets. Our exceptional team remains deeply committed to serving our customers and communities while crisply executing on the right strategic priorities for improved long-term financial performance."

Balance Sheet

  • Total loans ended the quarter at $22.76 billion, up $328.6 million or 5.9% annualized from the previous quarter and up $1.65 billion or 7.8% as compared to the first quarter 2015.
    • Commercial real estate loans grew by $216.3 million or 11.8% annualized from the previous quarter and $693.6 million or 10.1% as compared to the first quarter 2015.
    • Commercial and industrial loans grew by $40.0 million or 1.5% annualized from the previous quarter and $514.7 million or 5.0% as compared to the first quarter 2015.
    • Retail loans grew by $71.7 million or 6.7% annualized from the previous quarter and $443.7 million or 11.3% as compared to the first quarter 2015.
  • Total average deposits for the quarter were $23.21 billion, down $34.0 million or 0.6% annualized from the previous quarter and up $1.60 billion or 7.4% as compared to the first quarter 2015.
    • Average core deposits for the quarter grew by $55.9 million or 1.0% annualized from the previous quarter and $2.09 billion or 10.5% as compared to the first quarter 2015.
    • Average core deposits, excluding state, county, and municipal deposits, declined $81.6 million or 1.7% annualized from the previous quarter and grew $1.88 billion or 10.6% as compared to the first quarter 2015.
  • Period-end core deposits, excluding state, county, and municipal deposits, increased $238.2 million or 4.9% annualized from the previous quarter and $1.61 billion or 8.8% as compared to the first quarter 2015.

Core Performance
  • Total revenues 1 were $281.3 million, up $2.5 million or 0.9% from $278.7 million in the previous quarter and up 4.8% as compared to the first quarter 2015.
  • Net interest income was $218.2 million, up $5.6 million or 2.6% from $212.6 million in the previous quarter and up 7.3% as compared to the first quarter 2015.
  • The net interest margin increased 9 basis points to 3.27% compared to 3.18% in the previous quarter. The yield on earning assets was 3.73%, 10 basis points higher than the previous quarter, and the effective cost of funds increased 1 basis point to 0.46%.
  • Total non-interest income was $63.1 million, down $3.0 million or 4.6% from the previous quarter and 3.1% as compared to the first quarter 2015.
    • Mortgage banking income increased $1.3 million or 32.6% from the previous quarter.
    • Financial Management Services revenues, consisting primarily of fiduciary and asset management fees and brokerage revenue, decreased $796 thousand or 4.0% from the previous quarter.
    • Core banking fees 2 decreased $1.7 million or 4.8% from the previous quarter driven by a decrease in service charges on deposits of $811 thousand.
  • Total non-interest expense for the first quarter 2016 was $188.2 million, up $5.2 million or 2.8% from the previous quarter and up $9.3 million or 5.2% as compared to the first quarter 2015.
  • Adjusted non-interest expense for the first quarter 2016 was $179.3 million, down $1.1 million or 0.6% from the previous quarter and up $659 thousand or 0.4% as compared to the first quarter 2015.
    • Employment expense of $101.4 million increased $5.8 million or 6.1% from the previous quarter driven by seasonally higher employment taxes.
    • Professional fees of $6.4 million decreased $1.9 million or 22.9% from the previous quarter.
    • Advertising expense of $2.4 million decreased $1.3 million or 34.5% from the previous quarter.

Credit Quality
  • Total non-performing assets were $216.6 million at March 31, 2016, up $1.2 million or 0.6% from the previous quarter and down $53.5 million or 19.8% from March 31, 2015. The non-performing asset ratio was 0.95% at March 31, 2016 compared to 0.96% at the end of the previous quarter and 1.28% at March 31, 2015.
  • Provision expense increased $4.4 million as compared to the previous quarter.
    • The increase was primarily attributable to a decrease in the volume of recoveries in the first quarter of 2016 as compared to the previous quarter.
  • Net charge-offs were $7.4 million in the first quarter 2016, up $3.9 million from $3.4 million in the previous quarter. The annualized net charge-off ratio was 0.13% in the first quarter compared to 0.06% in the previous quarter.
  • Total delinquencies (consisting of loans 30 or more days past due and still accruing) remain low at 0.28% of total loans at March 31, 2016 compared to 0.21% the previous quarter and 0.27% at March 31, 2015. Total loans past due 90 days or more and still accruing were 0.01% of total loans at March 31, 2016, unchanged from December 31, 2015 and compared to 0.02% at March 31, 2015.

Capital Ratios

Capital ratios remained strong and include the impact of $110.9 million in common stock repurchases and the repurchase of $124.7 million of the outstanding subordinated notes that mature in 2017.
  • Common Equity Tier 1 ratio was 10.05% at March 31, 2016 compared to 10.37% at December 31, 2015.
  • Tier 1 Capital ratio was 10.05% at March 31, 2016 compared to 10.37% at December 31, 2015.
  • Total Risk Based Capital ratio was 12.26% at March 31, 2016 compared to 12.70% at December 31, 2015.
  • Tier 1 Leverage ratio was 9.15% at March 31, 2016 compared to 9.43% at December 31, 2015.
  • Tangible Common Equity ratio was 9.62% at March 31, 2016 compared to 9.90% at December 31, 2015.

First Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on April 19, 2016. 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/events. You may download RealPlayer or Windows Media Player (free download available) prior to accessing the actual call or the replay. 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 $29 billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services to customers through 28 locally-branded divisions, 257 branches, and 335 ATMs in Georgia, Alabama, South Carolina, Florida, and Tennessee. Synovus Bank, a wholly owned subsidiary of Synovus, was recognized as one of America's Most Reputable Banks by American Banker and the Reputation Institute in 2015. Synovus is on the web at synovus.com, on Twitter @synovus, and on LinkedIn at http://linkedin.com/company/synovus.

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 on credit trends and key credit metrics; expectations regarding deposits, loan growth and the net interest margin; expectations on our growth strategy, expense initiatives, and future profitability, 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, 2015 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.

Use of Non-GAAP Financial Measures

The measures entitled average core deposits; average core deposits excluding average state, county, and municipal deposits; core deposits excluding state, county, and municipal deposits; tangible common equity to tangible assets ratio; common equity Tier 1 (CET1) ratio (fully phased-in); adjusted earnings per diluted share; and adjusted non-interest expense are not measures recognized under U.S. generally accepted accounting principles (GAAP) and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are total average deposits; total deposits; total shareholders' equity to total assets ratio; net income per common share; and total non-interest expense, respectively.

Synovus believes that these non-GAAP financial measures provide meaningful additional information about Synovus to assist management and investors in evaluating Synovus' capital strength and the performance of its core business. These non-GAAP financial measures should not be considered as substitutes for total average deposits; total deposits; total shareholders' equity to total assets ratio; net income per common share; and total non-interest expense determined in accordance with GAAP and may not be comparable to other similarly titled measures at other companies.

The computations of average core deposits; average core deposits excluding average state, county, and municipal deposits; core deposits excluding state, county, and municipal deposits; tangible common equity to tangible assets ratio; common equity Tier 1 (CET1) ratio (fully phased-in); adjusted earnings per diluted share; and adjusted non-interest expense; and the reconciliation of these measures to total average deposits; total deposits; total shareholders' equity to total assets ratio; net income per common share; and total non-interest expense are set forth in the tables below.

1 Consists of net interest income and non-interest income excluding investment securities gains, net

2 Include service charges on deposit accounts, bankcard fees, letter of credit fees, ATM fee income, line of credit non-usage fees, gains from sales of government guaranteed loans, and miscellaneous other service charges.
 
Reconciliation of Non-GAAP Financial Measures                    

(dollars in thousands)
1Q16 4Q15 1Q15
 
Average core deposits
Average core deposits excluding state, county, and municipal deposits
Average total deposits $ 23,210,263 23,244,256 21,615,049
Subtract: Average brokered deposits   (1,095,239 ) (1,185,093 ) (1,594,822 )
Average core deposits   22,115,024   22,059,163   20,020,227  
Subtract: Average state, county, and municipal deposits   (2,440,749 ) (2,303,278 ) (2,224,193 )
Average core deposits excluding state, county, and

municipal deposits
$ 19,647,275     19,755,885   17,796,034  
 
Core deposits excluding state, county, and municipal deposits
Total deposits $ 23,449,928 23,242,661 22,107,849
Subtract: Brokered deposits   (1,204,517 ) (1,075,520 ) (1,604,946 )
Core deposits   22,245,411   22,167,141   20,502,903  
Subtract: State, county, and municipal deposits   (2,344,361 ) (2,504,315 ) (2,207,935 )
Core deposits excluding state, county, and municipal deposits $ 19,901,050     19,662,826   18,294,968  
 
Tangible common equity to tangible assets ratio
Total assets $ 29,171,257 28,792,653 27,633,784
Subtract: Goodwill (24,431 ) (24,431 ) (24,431 )
Subtract: Other intangible assets, net   (277 ) (471 ) (1,061 )
Tangible assets   29,146,549   28,767,751   27,608,292  
 
Total shareholders' equity 2,953,268 3,000,196 3,030,635

Subtract: Goodwill
(24,431 ) (24,431 ) (24,431 )

Subtract: Other intangible assets, net
(277 ) (471 ) (1,061 )

Subtract: Series C Preferred Stock, no par value
  (125,980 ) (125,980 ) (125,980 )
Tangible common equity $ 2,802,580   2,849,314   2,879,163  
Total shareholders' equity to total assets ratio 10.12 % 10.42 % 10.97
Tangible common equity to tangible assets ratio 9.62 % 9.90 % 10.43
 
 
Reconciliation of Non-GAAP Financial Measures, continued                    
(dollars in thousands) 1Q16 4Q15 1Q15
 
Common equity Tier 1 (CET1) ratio (fully phased-in)
Common equity Tier 1 (CET1) $ 2,609,191 2,660,016 2,592,618
Adjustment related to capital components   (125,980 ) (128,480 ) (128,480 )
CET1 (fully phased-in) $ 2,483,211 2,531,536 2,464,138
Total risk-weighted assets (fully phased-in) $ 26,216,248 25,915,650 24,307,203
Common equity Tier 1 (CET1) ratio (fully phased-in) 9.47 % 9.77 % 10.14 %
 
Adjusted net income per common share, diluted
Net income available to common shareholders $ 49,972 55,839 51,404
Add: Litigation contingency/settlement expenses (after-tax) (1) 1,712 457 -
Add: Restructuring charges (after-tax) 723 44 (67 )
Add: Loss on early extinguishment of debt (after-tax)   3,002   988   -  
Adjusted net income available to common shareholders $ 55,409 57,328 51,337
Weighted average common shares outstanding - diluted 127,857 131,197 135,744
Adjusted net income per common share, diluted $ 0.43   0.44   0.38  
 
Adjusted non-interest Expense
Total non-interest expense $ 188,233 183,033 178,908
Subtract: Restructuring charges (1,140 ) (69 ) 107
Subtract: Visa indemnification charges (360 ) (371 ) (375 )
Subtract: Loss on early extinguishment of debt (4,735 ) (1,533 ) -
Subtract: Litigation contingency/settlement expenses (1)   (2,700 ) (710 ) -  
Adjusted non-interest expense $ 179,298   180,350   178,640  
 

(1) Amounts for other periods presented herein are not reported separately as amounts are not material.

Synovus
                                     
INCOME STATEMENT DATA
(Unaudited)
(In thousands, except per share data) 2016       2015                               1st Quarter
 

First
Fourth Third Second First '16 vs. '15
Quarter       Quarter       Quarter       Quarter       Quarter       Change
 
Interest income $ 249,323 242,814 238,093 233,654 231,401 7.7

%
Interest expense 31,130 30,194   30,303   30,010   28,138   10.6  
 
 
Net interest income 218,193 212,620 207,790 203,644 203,263 7.3
Provision for loan losses 9,377 5,021   2,956   6,636   4,397   113.3  
 
 
Net interest income after provision for loan losses 208,816 207,599   204,834   197,008   198,866   5.0  
 
 
Non-interest income:
Service charges on deposit accounts 19,710 20,522 20,692 19,795 19,133 3.0
Fiduciary and asset management fees 11,274 11,206 11,308 11,843 11,571 (2.6 )
Brokerage revenue 6,483 6,877 6,946 6,782 7,251 (10.6 )
Mortgage banking income 5,484 4,136 5,965 7,511 6,484 (15.4 )
Bankcard fees 8,372 8,262 8,334 8,499 8,077 3.7
Investment securities gains, net 67 58 - 1,985 725 (90.8 )
Other fee income 4,804 5,798 5,521 4,605 5,246 (8.4 )
Other non-interest income 6,953 9,316   8,293   7,812   7,367   (5.6 )
 
 
Total non-interest income 63,147 66,175   67,059   68,832   65,854   (4.1 )
 
Non-interest expense:
Salaries and other personnel expense 101,358 95,524 94,341 94,565 96,488 5.0
Net occupancy and equipment expense 26,577 27,816 26,937 26,541 26,172 1.5
Third-party processing expense 11,116 10,993 10,844 10,672 10,343 7.5
FDIC insurance and other regulatory fees 6,719 6,776 6,591 6,767 6,957 (3.4 )
Professional fees 6,369 8,265 6,371 6,417 5,594 13.9
Advertising expense 2,410 3,680 5,488 2,865 3,443 (30.0 )
Foreclosed real estate expense, net 2,684 4,454 4,503 4,351 9,496 (71.7 )
Visa indemnification charges 360 371 363 354 375 (4.0 )
Loss on early extinguishment of debt 4,735 1,533 - - - nm
Litigation contingency/settlement expenses 2,700 710 - 4,400 - nm
Restructuring charges, net 1,140 69 69 5 (107 ) nm
Other operating expenses 22,065 22,842   22,400   20,869   20,147   9.5  
 
Total non-interest expense 188,233 183,033   177,907   177,806   178,908   5.2  
 
 
 
Income before income taxes 83,730 90,741 93,986 88,034 85,812 (2.4 )
Income tax expense 31,199 32,343   36,058   32,242   31,849   (2.0 )
 
 
Net income 52,531 58,398 57,928 55,792 53,963 (2.7 )
 
Dividends on preferred stock 2,559 2,559   2,559   2,559   2,559   -  
 
Net income available to common shareholders $ 49,972 55,839   55,369   53,233   51,404   (2.8 )

%
 
Net income per common share, basic $ 0.39 0.43 0.42 0.40 0.38 3.1

%
 
Net income per common share, diluted 0.39 0.43 0.42 0.40 0.38 3.2
 
Cash dividends declared per common share 0.12 0.12 0.10 0.10 0.10 20.0
 
Return on average assets * 0.73 % 0.81 0.81 0.80 0.80 (7 )

bps
Return on average common equity * 7.06 7.67 7.64 7.39 7.16 (10 )
 
Weighted average common shares outstanding, basic 127,227 130,354 131,516 132,947 134,933 (5.7 )

%
Weighted average common shares outstanding, diluted 127,857 131,197 132,297 133,625 135,744 (5.8 )
 
nm - not meaningful
bps - basis points
* - ratios are annualized
 
 
Synovus
                               
BALANCE SHEET DATA March 31, 2016 December 31, 2015 March 31, 2015
(Unaudited)
 
(In thousands, except share data)
 
ASSETS
Cash and cash equivalents $ 352,060 367,092 429,338
Interest bearing funds with Federal Reserve Bank 908,527 829,887 1,263,886
Interest earning deposits with banks 21,686 17,387 6,871
Federal funds sold and securities purchased
under resale agreements 76,300 69,819 80,772
Trading account assets, at fair value 4,801 5,097 20,002
Mortgage loans held for sale, at fair value 62,867 59,275 89,245
Investment securities available for sale, at fair value 3,582,244 3,587,818 3,130,041
 
Loans, net of deferred fees and costs 22,758,203 22,429,565 21,106,213
Allowance for loan losses (254,516 ) (252,496 ) (253,371 )
Loans, net 22,503,687   22,177,069   20,852,842  
 
Premises and equipment, net 439,122 445,155 451,843
Goodwill 24,431 24,431 24,431
Other real estate 38,462 47,030 74,791
Deferred tax asset, net 464,242 511,948 589,190
Other assets 692,828   650,645   619,638  
 
Total assets $ 29,171,257   28,792,653   27,632,890  
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing deposits $ 6,896,547 6,732,970 6,251,393
Interest bearing deposits, excluding brokered deposits 15,348,863 15,434,171 14,251,510
Brokered deposits 1,204,518   1,075,520   1,604,946  
 
Total deposits 23,449,928 23,242,661 22,107,849
 
Federal funds purchased and securities sold under repurchase agreements 203,979 177,025 125,323
Long-term debt 2,360,865 2,186,893 2,188,875
Other liabilities 203,217   185,878   180,208  
 
Total liabilities 26,217,989   25,792,457   24,602,255  
 
 
 
Shareholders' equity:
Series C Preferred Stock - no par value, 5,200,000 shares outstanding at March 31, 2016, December 31, 2015, and March 31, 2015 125,980 125,980 125,980
Common stock - $1.00 par value. 125,849,939 shares outstanding at March 31, 2016, 129,547,032 shares outstanding at December 31, 2015 and 133,929,630 shares outstanding at March 31, 2015 140,794 140,592 140,329
Additional paid-in capital 2,989,854 2,989,981 2,976,882
Treasury stock, at cost - 14,943,977 shares at March 31, 2016, 11,045,377 shares at December 31, 2015, and 6,399,177 shares at March 31, 2015 (512,496 ) (401,511 ) (261,402 )
Accumulated other comprehensive loss, net (740 ) (29,819 ) (3,651 )
Retained earnings 209,876   174,973   52,497  
Total shareholders' equity 2,953,268   3,000,196   3,030,635  
 
Total liabilities and shareholders' equity $ 29,171,257   28,792,653   27,632,890  
 
Synovus                                
   
AVERAGE BALANCES AND YIELDS/RATES (1)
(Unaudited)
(Dollars in thousands)
2016

 

2015
                                     
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
                                     
Interest Earning Assets
   
Taxable investment securities (2) $ 3,537,131 3,481,184 3,380,543 3,165,513 2,998,597
Yield 1.91

%

 
1.85 1.76 1.79 1.85
 
Tax-exempt investment securities (2) (4) $ 4,091 4,352 4,509 4,595 4,967
Yield (taxable equivalent) 6.37

%

 
6.16 6.21 6.15 6.21
 
Trading account assets $ 5,216 8,067 7,278 12,564 14,188
Yield 1.65

%

 

 
2.24 1.84 3.72 3.02
 
Commercial loans (3) (4) $ 18,253,169 17,884,661 17,522,735 17,297,130 17,176,641
Yield 4.03

%

 
3.97 3.99 4.01 4.06
 
Consumer loans (3) $ 4,334,817 4,233,061 4,105,639 3,986,151 3,929,188
Yield 4.37

%

 
4.27 4.31 4.37 4.45
 
Allowance for loan losses $ (258,097 )         (252,049 )       (256,102 )       (254,177 )       (257,167 )
 
Loans, net (3) $ 22,329,889 21,865,673 21,372,272 21,029,104 20,848,662
Yield 4.15

%

 
4.08 4.10 4.14 4.19
 
Mortgage loans held for sale $ 63,339 50,668 69,438 90,419 64,507
Yield 3.72

%

 
3.84 3.82 3.39 3.92
 
Federal funds sold, due from Federal Reserve Bank,
and other short-term investments $ 885,939 1,081,604 1,380,686 1,590,114 1,123,250
Yield 0.47

%

 
0.27 0.24 0.24 0.24
 
Federal Home Loan Bank and Federal Reserve Bank stock (5) $ 80,679 66,790 71,852 76,091 80,813
Yield 3.82

%

 
5.08 4.71 4.57 3.90
                                                 
Total interest earning assets $ 26,906,284 26,558,338 26,286,578 25,968,400 25,134,984
Yield 3.73

%

 
3.63 3.60 3.61 3.73
                                                 
 
Interest Bearing Liabilities
   
 
Interest bearing demand deposits $ 4,198,738 4,117,116 3,955,803 3,919,401 3,800,476
Rate 0.17

%

 
0.17 0.18 0.18 0.19
 
Money market accounts $ 7,095,778 7,062,517 6,893,563 6,466,610 6,210,704
Rate 0.32

%

 
0.35 0.36 0.35 0.32
 
Savings deposits $ 722,172 692,536 685,813 675,260 649,597
Rate 0.07

%

 
0.06 0.06 0.06 0.05
 
Time deposits under $100,000 $ 1,279,811 1,307,601 1,338,994 1,351,299 1,324,513
Rate 0.65

%

 
0.65 0.66 0.68 0.61
 
Time deposits over $100,000 $ 2,006,302 2,033,193 2,086,851 2,061,434 1,926,380
Rate 0.89

%

 
0.88 0.88 0.88 0.80
 
Non maturing brokered deposits $ 315,006 297,925 221,817 185,909 181,754
Rate 0.48

%

 
0.31 0.31 0.31 0.30
 
Brokered time deposits $ 780,232 887,168 1,135,346 1,370,022 1,413,068
Rate 0.83

%
     

 
0.76         0.71         0.67         0.63  
 
Total interest bearing deposits $ 16,398,039 16,398,056 16,318,187 16,029,935 15,506,492
Rate 0.39

%

 
0.40 0.42 0.42 0.39
 
Federal funds purchased and securities sold under
repurchase agreements $ 177,921 158,810 207,894 232,531 222,658
Rate 0.10

%

 
0.08 0.09 0.08 0.08
 
Long-term debt $ 2,361,973 2,007,924 2,073,185 2,173,595 2,207,215
Rate 2.52

%

 
2.63 2.46 2.39 2.41
                                                 
 
Total interest bearing liabilities $ 18,937,933 18,564,790 18,599,266 18,436,061 17,936,365
Rate 0.66

%

 
0.65 0.65 0.65 0.63
                                                 
 
Non-interest bearing demand deposits $ 6,812,223 6,846,200 6,541,832 6,436,167 6,108,558
 
Effective cost of funds 0.46

%

 
0.45 0.46 0.46 0.45
                                                 
 
Net interest margin           3.27

%
     

 
3.18         3.14         3.15         3.28  
 
Taxable equivalent adjustment $ 305 311 315 330 349
 
(1) Yields and rates are annualized.
(2) Excludes net unrealized gains and losses.
(3) Average loans are shown net of unearned income. Non-performing loans are included.

(4) Reflects taxable-equivalent adjustments, using the statutory federal income tax rate of 35%, in adjusting interest on tax-exempt loans and investment securities to a taxable-equivalent basis.
(5) Included as a component of Other Assets on the consolidated balance sheet
 
Synovus                  
  LOANS OUTSTANDING AND NON-PERFORMING LOANS COMPOSITION                      
(Unaudited)              
(Dollars in thousands)
               

March 31, 2016
                 
Loans as a % Total Non-performing Loans
of Total Loans Non-performing as a % of Total
Loan Type Total Loans         Outstanding           Loans           Nonperforming Loans
Multi-Family $ 1,528,949 6.7 % $ 223

 
0.1 %
Hotels 718,640 3.2 369 0.2
Office Buildings 1,557,608 6.8 2,590 1.5
Shopping Centers 963,520 4.2 - 0.0
Commercial Development 88,251 0.4 7,919 4.4
Warehouses 568,662 2.5 1,150 0.6
Other Investment Property 561,614           2.5             11,498             6.5  
Total Investment Properties 5,987,244 26.3 23,749 13.3
1-4 Family Construction 189,395 0.8 430 0.2
1-4 Family Investment Mortgage 783,256 3.4 7,255 4.1
Residential Development 161,941           0.7             9,673             5.4  
Total 1-4 Family Properties 1,134,592 5.0 17,358 9.7
Land Acquisition 469,882           2.0             14,416             8.1  
Total Commercial Real Estate 7,591,718           33.4             55,523             31.1  
Commercial, Financial, and Agricultural 6,559,171 28.7 63,312 35.5
Owner-Occupied 4,272,218           18.8             18,582             10.5  
Total Commercial & Industrial 10,831,389           47.6             81,894             46.0  
Home Equity Lines 1,669,406 7.3 16,432 9.2
Consumer Mortgages 1,970,193 8.7 21,756 12.2
Credit Cards 232,554 1.1 - -
Other Retail Loans 492,274           2.2             2,562             1.4  
Total Retail 4,364,427           19.2             40,750             22.9  
Unearned Income (29,331 )         (0.1 )           -             nm
Total $ 22,758,203   100.0   % $ 178,167   100.0   %
LOANS OUTSTANDING BY TYPE COMPARISON

 

 
(Unaudited)

 

 
(Dollars in thousands)

 

 
Total Loans   1Q16 vs. 4Q15   1Q16 vs. 1Q15
Loan Type March 31, 2016 December 31, 2015 % change (1) March 31, 2015 % change

 

 
Multi-Family $ 1,528,949 1,391,453 39.7 % $ 1,227,286 24.6 %

 

 
Hotels 718,640 703,825 8.5 634,894 13.2

 

 
Office Buildings 1,557,608 1,495,247 16.8 1,287,048 21.0

 

 
Shopping Centers 963,520 956,394 3.0 876,667 9.9

 

 
Commercial Development 88,251 92,809 (19.8 ) 123,679 (28.6 )

 

 
Warehouses 568,662 563,217 3.9 531,234 7.0

 

 
Other Investment Property 561,614           548,686             9.5             536,086           4.8  

 

 
Total Investment Properties 5,987,244 5,751,631 16.5 5,216,894 14.8

 

 
1-4 Family Construction 189,395 168,243 50.6 148,248 27.8

 

 
1-4 Family Investment Mortgage 783,256 786,797 (1.8 ) 793,672 (1.3 )

 

 
Residential Development 161,941           154,814             18.5             169,696           (4.6 )

 

 
Total 1-4 Family Properties 1,134,592 1,109,854 9.0 1,111,616 2.1

 

 
Land Acquisition 469,882           513,981             (34.5 )           569,649           (17.5 )

 

 
Total Commercial Real Estate 7,591,718           7,375,466             11.8             6,898,159           10.1  

 

 
Commercial, Financial, and Agricultural 6,559,171 6,472,482 5.4 6,175,460 6.2

 

 
Owner-Occupied 4,272,218           4,318,950             (4.4 )           4,141,229           3.2  

 

 
Total Commercial & Industrial 10,831,389           10,791,432             1.5             10,316,689           5.0  

 

 
Home Equity Lines 1,669,406 1,689,914 (4.9 ) 1,672,038 (0.2 )

 

 
Consumer Mortgages 1,970,193 1,938,683 6.5 1,702,388 15.7

 

 
Credit Cards 232,554 240,851 (13.9 ) 242,257 (4.0 )

 

 
Other Retail Loans 492,274           423,318             65.5             304,050           61.9  

 

 
Total Retail 4,364,427           4,292,766             6.7             3,920,733           11.3  

 

 
Unearned Income (29,331 )         (30,099 )           (10.3 )           (29,368 )         (0.1 )

 

 

 

 
Total $ 22,758,203   22,429,565   5.9   % $ 21,106,213   7.8   %

 

 
(1) Percentage change is annualized.
Synovus                                                  

 
 
CREDIT QUALITY DATA
(Unaudited)
(Dollars in thousands) 2016

 

2015
1st Quarter
                                                     

First
Fourth Third Second First '16 vs. '15
Quarter         Quarter         Quarter         Quarter         Quarter         Change
 
Non-performing Loans $ 178,167 168,370 157,640 173,638 194,232 (8.3 ) %
Other Loans Held for Sale (1) - - - - 1,082 (100.0 )
Other Real Estate 38,462 47,030 64,346 66,449 74,791 (48.6 )  
Non-performing Assets 216,629 215,400 221,986 240,087 270,105 (19.8 )
 
Allowance for loan losses 254,516 252,496 250,900 254,702 253,371 0.5
 
Net Charge-Offs - Quarter 7,357 3,425 6,758 5,306 12,343 (40.4 )
Net Charge-Offs / Average Loans - Quarter (2) 0.13 % 0.06 0.12 0.10 0.23
 
Non-performing Loans / Loans 0.78 0.75 0.72 0.81 0.92
Non-performing Assets / Loans, Other Loans Held for Sale & ORE 0.95 0.96 1.01 1.11 1.28
Allowance / Loans 1.12 1.13 1.15 1.18 1.20
 
Allowance / Non-performing Loans 142.85 149.96 159.16 146.69 130.45
Allowance / Non-performing Loans (3) 173.64 189.47 205.90 202.08 197.55
 
Past Due Loans over 90 days and Still Accruing $ 3,214 2,621 2,998 4,832 5,025 (36.0 ) %
As a Percentage of Loans Outstanding 0.01 % 0.01 0.01 0.02 0.02
 
Total Past Due Loans and Still Accruing $ 63,852 47,912 39,350 50,860 57,443 11.2
As a Percentage of Loans Outstanding 0.28 % 0.21 0.18 0.24 0.27
 
Accruing Troubled Debt Restructurings (TDRs) $ 209,159 223,873 240,370 268,542 313,362 (33.3 )
 
(1) Represent impaired loans that are intended to be sold. Held for sale loans are carried at the lower of cost or fair value, less costs to sell.
(2) Ratio is annualized.
(3) Excludes non-performing loans for which the expected loss has been charged off.
 
                                                                       
 
 
SELECTED CAPITAL INFORMATION (1)
(Unaudited)
(Dollars in thousands)      
March 31, 2016 December 31, 2015 March 31, 2015
 
 
Tier 1 Capital $ 2,609,191 2,660,016 2,592,618
Total Risk-Based Capital 3,183,901 3,255,758 3,037,528
Common Equity Tier 1 Ratio (transitional) 10.05 % 10.37 10.80
Common Equity Tier 1 Ratio (fully phased-in) 9.47 9.77 10.14
Tier 1 Capital Ratio 10.05 10.37 10.80
Total Risk-Based Capital Ratio 12.26 12.70 12.65
Tier 1 Leverage Ratio 9.15 9.43 9.66
Common Equity as a Percentage of Total Assets (2) 9.69 9.98 10.51
Tangible Common Equity as a Percentage of Tangible Assets (3) 9.62 9.90 10.43
Tangible Common Equity as a Percentage of Risk Weighted Assets (3) 10.79 11.11 11.99
Book Value Per Common Share (4) 22.47 22.19 21.69
Tangible Book Value Per Common Share (3) 22.27 21.99 21.50
 
 
(1) Current quarter regulatory capital information is preliminary.
(2) Common equity consists of Total Shareholders' Equity less Preferred Stock.
(3) Excludes the carrying value of goodwill and other intangible assets from common equity and total assets.
(4) Book Value Per Common Share consists of Total Shareholders' Equity less Preferred Stock divided by total common shares outstanding.

 

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