Press Release
Synovus Announces Earnings for the Fourth Quarter
Diluted Earnings per Share Increased 16.0% to $0.37; Total Loans Grew $509 Million or 9.8% Annualized
COLUMBUS, Ga.--(BUSINESS WIRE)-- Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended December 31, 2014.
Net income available to common shareholders for the fourth quarter of 2014 was $50.6 million, or $0.37 per diluted share as compared to $44.2 million, or $0.32 per diluted share for the third quarter of 2014 and $35.8 million, or $0.26 per diluted share for the fourth quarter of 2013. Adjusted earnings per diluted share for the fourth quarter of 2014 were $0.39, a 5.2% increase from the third quarter of 2014 adjusted earnings per diluted share of $0.37.
“We are pleased with our fourth quarter performance, which contributed to an overall solid 2014,” said Kessel D. Stelling, Synovus Chairman and CEO. “For the year, net income available to common shareholders was $185 million, a 56.1% increase over 2013. Loans grew by 5.2%, and we saw continued broad-based improvement in credit quality, especially in the non-performing loan ratio which ended the year at 0.94%. We continued to maintain strong capital levels throughout 2014, and announced in October our plan to return excess capital to shareholders through a $250 million stock repurchase plan and a 43% increase in the common stock dividend. As we enter 2015, our focus remains on caring for customers and improving profitability through balance sheet and fee income growth, as well as a continued focus on efficiency.”
2014 Highlights
- Net income available to common shareholders for 2014 was $185.0 million, or $1.33 per diluted share as compared to $118.6 million, or $0.88 per diluted share for 2013. Diluted EPS grew 50.5% for 2014 compared to 2013.
- Total loans ended the year at $21.10 billion, a $1.04 billion or 5.2% increase from 2013.
- Low-cost core deposits1 ended the year at $16.72 billion, a $589.0 million or 3.7% increase from 2013.
- Non-performing loans, excluding loans held for sale, of $197.8 million at December 31, 2014 declined 52.5% from December 31, 2013, and the non-performing loan ratio declined 114 basis points from December 31, 2013 to 0.94% at December 31, 2014.
- The net-charge off ratio for 2014 was 0.39%, down 30 basis points from 2013.
- The allowance for loan losses to non-performing loans ratio2 increased to 197.22% at December 31, 2014 compared to 95.43% at December 31, 2013.
- Tier 1 common equity ratio increased 35 basis points from December 31, 2013 to 10.28% at December 31, 2014.
Fourth Quarter 2014 Highlights
Income Statement
Adjusted pre-tax, pre-credit costs income was $99.6 million for the fourth quarter of 2014, a decrease of $3.9 million from $103.5 million for the third quarter of 2014. The third quarter of 2014 included the benefit from a $3.6 million net insurance recovery for incurred legal fees related to litigation.
- Net interest income was $207.5 million for the fourth quarter of 2014, up $1.2 million from $206.3 million in the previous quarter.
- The net interest margin declined three basis points to 3.34% compared to 3.37% in the third quarter of 2014. The yield on earning assets was 3.78%, three basis points lower than the third quarter of 2014, and the effective cost of funds remained unchanged at 0.44%.
-
Total non-interest income was $64.5 million, up $564 thousand or 0.9%
compared to $64.0 million for the third quarter of 2014.
- Core banking fees3 were $33.0 million, up $208 thousand or 0.6%, driven by a $355 thousand or 4.3% increase in bankcard fees.
- Financial Management Services revenues, consisting primarily of fiduciary and asset management fees and brokerage revenue, increased $205 thousand or 1.1%, driven by a $483 thousand increase in fiduciary and asset management fees.
- Mortgage banking income increased $230 thousand or 4.9%.
- Total non-interest expense for the fourth quarter of 2014 was $184.9 million, down $8.9 million from the third quarter of 2014.
-
Adjusted non-interest expense for the fourth quarter of 2014 was
$172.4 million, up $5.7 million or 3.4% compared to the third quarter
of 2014.
-
Professional fees were $8.0 million, up $5.5 million compared to
the third quarter of 2014.
- The fourth quarter of 2014 reflects elevated attorney fees related to the final resolution of one credit.
- The third quarter of 2014 included the benefit from a $3.6 million net insurance recovery for incurred legal fees related to litigation.
- Advertising expense was $8.1 million, an increase of $925 thousand compared to the third quarter of 2014.
-
Professional fees were $8.0 million, up $5.5 million compared to
the third quarter of 2014.
-
Total loans grew $509.1 million or 9.8% annualized compared to the
third quarter of 2014.
- Commercial and industrial loans grew by $275.9 million, or 10.9% annualized.
- Commercial real estate loans grew by $155.9 million or 9.2% annualized.
- Retail loans grew by $79.2 million, or 8.2% annualized.
- Total average deposits for the quarter were $21.34 billion, up $397.4 million or 7.5% annualized from the previous quarter.
- Average core deposits for the quarter were $19.73 billion, up $289.7 million or 5.9% annualized compared to the third quarter of 2014.
- Average core deposits, excluding state, county, and municipal deposits, grew by $150.7 million or 3.4% annualized compared to the previous quarter.
Credit Quality
Broad-based improvement in credit quality continued.
- Total credit costs were $16.4 million in the fourth quarter of 2014 compared to $15.7 million in the third quarter of 2014.
- Non-performing loans, excluding loans held for sale, were $197.8 million at December 31, 2014, down $44.6 million or 18.4% from the previous quarter, and down $218.5 million or 52.5% from the fourth quarter of 2013. The non-performing loan ratio was 0.94% at December 31, 2014, down from 1.18% at the end of the previous quarter and 2.08% at December 31, 2013.
- Total non-performing assets were $286.8 million at December 31, 2014, down $37.5 million or 11.6% from the previous quarter, and down $252.8 million or 46.8% from the fourth quarter of 2013. The non-performing asset ratio was 1.35% at December 31, 2014, compared to 1.57% at the end of the previous quarter and 2.67% at December 31, 2013.
- Total delinquencies (consisting of loans 30 or more days past due and still accruing) declined to 0.24% at December 31, 2014 compared to 0.35% at September 30, 2014 and 0.36% at December 31, 2013. Total loans past due 90 days or more and still accruing were 0.02% at December, 31, 2014, unchanged from September 30, 2014 and December 31, 2013.
- Net charge-offs were $16.3 million in the fourth quarter of 2014, up $4.0 million or 32.7% from $12.3 million in the third quarter of 2014. The annualized net charge-off ratio was 0.31% in the fourth quarter compared to 0.24% in the previous quarter.
Capital Ratios
Capital ratios remained strong and include the impact of common stock repurchases totaling $88.1 million completed during the fourth quarter of 2014.
- Tier 1 Common Equity ratio was 10.28% at December 31, 2014 compared to 10.60% at September 30, 2014.
- Tier 1 Capital ratio was 10.86% at December 31, 2014 compared to 11.19% at September 30, 2014.
- Total Risk Based Capital ratio was 12.75% at December 31, 2014 compared to 13.17% at September 30, 2014.
- Tier 1 Leverage ratio was 9.67% at December 31, 2014 compared to 9.85% at September 30, 2014.
- Tangible Common Equity ratio was 10.69% at December 31, 2014 compared to 11.04% at September 30, 2014.
1 Excludes the impact from the sale of deposits of the Memphis, Tennessee branches in January 2014.
2 Excludes impaired loans with no reserve.
3 Include service charges on deposit accounts, bankcard fees, letter of credit fees, ATM fee income, line of credit non-usage fees, and miscellaneous other service charges.
Fourth Quarter Earnings Conference Call
Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on January 27, 2015. 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 www.synovus.com/webcasts. 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.
About Synovus
Synovus Financial Corp. is a financial services company based in Columbus, Georgia, with approximately $27 billion in assets. Synovus Financial Corp. provides commercial and retail banking, investment and mortgage services to customers through 28 locally branded divisions, 258 branches and 341 ATMs in Georgia, Alabama, South Carolina, Florida and Tennessee. See Synovus Financial Corp. on the web at www.synovus.com.
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; expectations regarding our capital management, including our announced share repurchase program, 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, 2013 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; low-cost core deposits excluding the impact from the sale of deposits of the Memphis, Tennessee branches in January 2014; Tier 1 common equity ratio; tangible common equity to tangible assets ratio; adjusted earnings per diluted share; adjusted pre-tax, pre-credit costs income; 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; Tier 1 capital to risk-weighted assets ratio; total shareholders’ equity to total assets ratio; net income per common share, diluted; income before income taxes; 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; Tier 1 capital to risk-weighted assets ratio; total shareholders’ equity to total assets ratio; net income per common share, diluted; income before income taxes; 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; low-cost core deposits excluding the impact from the sale of deposits of the Memphis, Tennessee branches in January 2014; Tier 1 common equity ratio; tangible common equity to tangible assets ratio; adjusted earnings per diluted share; adjusted pre-tax, pre-credit costs income; and adjusted non-interest expense; and the reconciliation of these measures to total average deposits; total deposits; Tier 1 capital to risk-weighted assets ratio; total shareholders’ equity to total assets ratio; net income per common share, diluted; income before income taxes; and total non-interest expense are set forth in the tables below.
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||
| (dollars in thousands) | 4Q14 | 3Q14 | 2Q14 | 1Q14 | 4Q13 | ||||||||||||||
| Average core deposits | |||||||||||||||||||
| Average core deposits excluding state, county, and municipal deposits | |||||||||||||||||||
| Average total deposits | $ | 21,336,007 | 20,938,587 | 20,863,706 | 20,725,259 | 21,150,068 | |||||||||||||
| Subtract: Average brokered deposits | (1,602,354 | ) | (1,494,620 | ) | (1,401,167 | ) | (1,234,847 | ) | (1,194,427 | ) | |||||||||
| Average core deposits | 19,733,653 | 19,443,967 | 19,462,539 | 19,490,412 | 19,955,641 | ||||||||||||||
| Subtract: Average state, county, and municipal deposits | (2,184,757 | ) | (2,045,817 | ) | (2,268,852 | ) | (2,365,096 | ) | (2,354,731 | ) | |||||||||
Average core deposits excluding state, county, and municipal deposits | $ | 17,548,896 | 17,398,150 | 17,193,687 | 17,125,316 | 17,600,910 | |||||||||||||
| Low-cost core deposits excluding the impact from the sale of deposits of the Memphis, Tennessee branches in January 2014 | 4Q14 | 4Q13 | |||||||||||||||||
| Total deposits | $ | 21,531,699 | 20,876,790 | ||||||||||||||||
| Brokered deposits | (1,642,398 | ) | (1,094,002 | ) | |||||||||||||||
| Core deposits | 19,889,301 | 19,782,788 | |||||||||||||||||
| Time deposits | (3,167,950 | ) | (3,498,200 | ) | |||||||||||||||
| Low-cost core deposits | 16,721,351 | 16,284,588 | |||||||||||||||||
| Impact from the sale of deposits of the Memphis, Tennessee branches in January 2014 | - | (152,222 | ) | ||||||||||||||||
Low-cost core deposits excluding the impact from the sale of deposits of the Memphis, Tennessee branches in January 2014 | $ | 16,721,351 | $ | 16,132,366 | |||||||||||||||
| Tier 1 Common Equity Ratio | |||||||||||||||||||
| Total shareholders' equity | $ | 3,041,271 | 3,076,545 | 3,053,051 | 2,998,496 | 2,948,985 | |||||||||||||
| Add/subtract: Accumulated other comprehensive loss (income) | 12,605 | 24,827 | 13,716 | 30,463 | 41,258 | ||||||||||||||
| Subtract: Goodwill | (24,431 | ) | (24,431 | ) | (24,431 | ) | (24,431 | ) | (24,431 | ) | |||||||||
| Subtract: Other intangible assets, net | (1,265 | ) | (1,471 | ) | (1,678 | ) | (1,883 | ) | (3,415 | ) | |||||||||
| Subtract: Disallowed deferred tax asset | (492,199 | ) | (529,342 | ) | (547,786 | ) | (579,537 | ) | (618,516 | ) | |||||||||
| Other items | 7,644 | 7,637 | 7,619 | 7,682 | 7,612 | ||||||||||||||
| Tier 1 capital | 2,543,625 | 2,553,765 | 2,500,491 | 2,430,790 | 2,351,493 | ||||||||||||||
| Subtract: Qualifying trust preferred securities | (10,000 | ) | (10,000 | ) | (10,000 | ) | (10,000 | ) | (10,000 | ) | |||||||||
| Subtract: Series C Preferred Stock, no par value | (125,980 | ) | (125,980 | ) | (125,980 | ) | (125,980 | ) | (125,862 | ) | |||||||||
| Tier 1 common equity | $ | 2,407,645 | 2,417,785 | 2,364,511 | 2,294,810 | 2,215,631 | |||||||||||||
| Risk-weighted assets | $ | 23,431,497 | (1) | 22,817,378 | 22,702,108 | 22,404,099 | 22,316,091 | ||||||||||||
| Tier 1 common equity ratio | 10.28 | % | (1) | 10.60 | 10.42 | 10.24 | 9.93 | ||||||||||||
| ||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||
| (dollars in thousands) | 4Q14 | 3Q14 | 2Q14 | 1Q14 | 4Q13 | |||||||||||||
| Tangible common equity to tangible assets ratio | ||||||||||||||||||
| Total assets | $ | 27,051,231 | 26,519,110 | 26,627,290 | 26,435,426 | 26,201,604 | ||||||||||||
| Subtract: Goodwill | (24,431 | ) | (24,431 | ) | (24,431 | ) | (24,431 | ) | (24,431 | ) | ||||||||
| Subtract: Other intangible assets, net | (1,265 | ) | (1,471 | ) | (1,678 | ) | (1,883 | ) | (3,415 | ) | ||||||||
| Tangible assets | 27,025,535 | 26,493,208 | 26,601,181 | 26,409,112 | 26,173,758 | |||||||||||||
| Total shareholders’ equity | 3,041,271 | 3,076,545 | 3,053,051 | 2,998,496 | 2,948,985 | |||||||||||||
| Subtract: Goodwill | (24,431 | ) | (24,431 | ) | (24,431 | ) | (24,431 | ) | (24,431 | ) | ||||||||
| Subtract: Other intangible assets, net | (1,265 | ) | (1,471 | ) | (1,678 | ) | (1,883 | ) | (3,415 | ) | ||||||||
| Subtract: Series C Preferred Stock, no par value | (125,980 | ) | (125,980 | ) | (125,980 | ) | (125,980 | ) | (125,862 | ) | ||||||||
| Tangible common equity | $ | 2,889,595 | 2,924,663 | 2,900,962 | 2,846,202 | 2,795,277 | ||||||||||||
| Total shareholders’ equity to total assets ratio | 11.24 | % | 11.60 | 11.47 | 11.34 | 11.25 | ||||||||||||
| Tangible common equity to tangible assets ratio | 10.69 | % | 11.04 | 10.91 | 10.78 | 10.68 | ||||||||||||
| Adjusted earnings per diluted share | ||||||||||||||||||
| Net income available to common shareholders | $ | 50,612 | $ | 44,229 | ||||||||||||||
| Add: Litigation settlement expenses (after-tax) | 283 | 7,545 | ||||||||||||||||
| Add: Recovery of previously incurred legal costs related to certain legal matters, net of legal cost incurred in 3Q14 related to those same legal matters (after-tax) (2) | - | (2,211 | ) | |||||||||||||||
| Add: Restructuring charges (after-tax) | 2,129 | 494 | ||||||||||||||||
| Add: Visa indemnification charges (after-tax) | 189 | 1,209 | ||||||||||||||||
| Adjusted net income available to common shareholders | $ | 53,213 | 51,266 | |||||||||||||||
| Weighted average common shares outstanding - diluted | 137,831 | 139,726 | ||||||||||||||||
| Adjusted earnings per diluted share | $ | 0.39 | 0.37 | |||||||||||||||
Reconciliation of Non-GAAP Financial Measures, continued |
| |||||||||||||||
| (dollars in thousands) | 4Q14 | 3Q14 | 2Q14 | 1Q14 | 4Q13 | |||||||||||
| Adjusted Pre-tax, Pre-credit Costs Income | ||||||||||||||||
| Income before income taxes | $ | 78,928 | 72,656 | 73,950 | 77,024 | 59,710 | ||||||||||
| Add: Provision for losses on loans | 8,193 | 3,843 | 12,284 | 9,511 | 14,064 | |||||||||||
| Add: Other credit costs(3) | 8,213 | 11,858 | 4,635 | 8,128 | 8,285 | |||||||||||
| Add: Restructuring charges | 3,484 | 809 | 7,716 | 8,577 | 3,770 | |||||||||||
Add: Litigation settlement expenses (4) | 463 | 12,349 | - | - | 10,000 | |||||||||||
| Subtract: Investment securities gains, net | - | - | - | (1,331 | ) | (373 | ) | |||||||||
| Add: Visa indemnification charges | 310 | 1,979 | 356 | 396 | 799 | |||||||||||
| Subtract: Gain on sale of Memphis branches, net (5) | - | - | - | (5,789 | ) | - | ||||||||||
| Pre-tax, pre-credit costs income | $ | 99,591 | 103,494 | 98,941 | 96,516 | 96,255 | ||||||||||
| Adjusted Non-interest Expense | ||||||||||||||||
| Total non-interest expense | $ | 184,883 | 193,749 | 182,205 | 184,161 | 190,738 | ||||||||||
| Subtract: Other credit costs(3) | (8,213 | ) | (11,858 | ) | (4,635 | ) | (8,128 | ) | (8,285 | ) | ||||||
| Subtract: Restructuring charges | (3,484 | ) | (809 | ) | (7,716 | ) | (8,577 | ) | (3,770 | ) | ||||||
| Subtract: Visa indemnification charges | (310 | ) | (1,979 | ) | (356 | ) | (396 | ) | (799 | ) | ||||||
| Subtract: Litigation settlement expenses (4) | (463 | ) | (12,349 | ) | - | - | (10,000 | ) | ||||||||
| Adjusted non-interest expense | $ | 172,413 | 166,754 | 169,498 | 167,060 | 167,884 | ||||||||||
(1) Preliminary | ||||||||||||||||
(2) Recovery of previously incurred legal costs represents a reimbursement from an insurance carrier for attorney fees incurred in previous periods in connection with certain litigation. This amount, net of attorney fees incurred in 3Q14 relating to the same legal matters, is recorded as a component of professional fees in the consolidated income statement. These items are also a component of adjusted pre-tax, pre-credit costs income. | ||||||||||||||||
| (3) Other credit costs consist primarily of foreclosed real estate expense, net. | ||||||||||||||||
| (4) Amounts consist of litigation settlement expenses, including loss contingency accruals, with respect to certain legal matters. Amounts for other periods presented herein are not reported separately as amounts are not material. | ||||||||||||||||
| (5) Consists of gain, net of associated costs, from the sale of certain loans, premises, deposits, and other assets and liabilities of the Memphis, Tennessee branches of Trust One Bank, a division of Synovus Bank. | ||||||||||||||||
| Synovus | |||||||||||
| INCOME STATEMENT DATA | Twelve Months Ended | ||||||||||
| (Unaudited) | |||||||||||
| (Dollars in thousands, except per share data) | December 31, | ||||||||||
| 2014 | 2013 | Change | |||||||||
| Interest income | $ | 928,692 | 929,014 | (0.0) | % | ||||||
| Interest expense | 109,408 | 118,822 | (7.9) | ||||||||
| Net interest income | 819,284 | 810,192 | 1.1 | ||||||||
| Provision for loan losses | 33,831 | 69,598 | (51.4) | ||||||||
| Net interest income after provision for loan losses | 785,453 | 740,594 | 6.1 | ||||||||
| Non-interest income: | |||||||||||
| Service charges on deposit accounts | 78,897 | 77,789 | 1.4 | ||||||||
| Fiduciary and asset management fees | 45,226 | 43,450 | 4.1 | ||||||||
| Brokerage revenue | 27,088 | 27,538 | (1.6) | ||||||||
| Mortgage banking income | 18,354 | 22,482 | (18.4) | ||||||||
| Bankcard fees | 32,931 | 30,641 | 7.5 | ||||||||
| Investment securities gains, net | 1,331 | 2,945 | (54.8) | ||||||||
| Other fee income | 19,130 | 22,567 | (15.2) | ||||||||
| Decrease in fair value of private equity investments, net | (378) | (2,963) | 87.2 | ||||||||
| Gain on sale of Memphis branches, net (1) | 5,789 | - | nm | ||||||||
| Other non-interest income | 33,736 | 29,122 | 15.8 | ||||||||
| Total non-interest income | 262,104 | 253,571 | 3.4 | ||||||||
| Non-interest expense: | |||||||||||
| Salaries and other personnel expense | 371,904 | 368,152 | 1.0 | ||||||||
| Net occupancy and equipment expense | 105,806 | 103,339 | 2.4 | ||||||||
| Third-party processing expense | 40,042 | 40,135 | (0.2) | ||||||||
| FDIC insurance and other regulatory fees | 34,043 | 32,758 | 3.9 | ||||||||
| Professional fees | 26,440 | 38,776 | (31.8) | ||||||||
| Advertising expense | 24,037 | 8,971 | 167.9 | ||||||||
| Foreclosed real estate expense, net | 25,321 | 33,864 | (25.2) | ||||||||
| Losses on other loans held for sale, net | 1,567 | 329 | 376.3 | ||||||||
| Visa indemnification charges | 3,041 | 1,600 | 90.1 | ||||||||
| Litigation settlement expenses (2) | 12,812 | 10,000 | 28.1 | ||||||||
| Restructuring charges | 20,585 | 11,064 | 86.1 | ||||||||
| Other operating expenses | 79,400 | 92,549 | (14.2) | ||||||||
| Total non-interest expense | 744,998 | 741,537 | 0.5 | ||||||||
| Income before income taxes | 302,559 | 252,628 | 19.8 | ||||||||
| Income tax expense | 107,310 | 93,245 | 15.1 | ||||||||
| Net income | 195,249 | 159,383 | 22.5 | ||||||||
| Dividends and accretion of discount on preferred stock | 10,238 | 40,830 | (74.9) | ||||||||
| Net income available to common shareholders | $ | 185,011 | 118,553 | 56.1 | |||||||
| Net income per common share, basic (3) | 1.34 | 0.93 | 43.7 | ||||||||
| Net income per common share, diluted (3) | 1.33 | 0.88 | 50.5 | ||||||||
| Cash dividends declared per common share (3) | 0.31 | 0.28 | 10.7 | ||||||||
| Return on average assets | 0.74 | % | 0.61 | 21.3 | |||||||
| Return on average common equity | 6.38 | 4.39 | 45.3 | ||||||||
| Weighted average common shares outstanding, basic (3) | 138,495 | 127,495 | 8.6 | % | |||||||
| Weighted average common shares outstanding, diluted (3) | 139,154 | 134,226 | 3.7 | ||||||||
| nm - not meaningful | |||||||||||
(1) | Consists of gain, net of associated costs, from the sale of certain loans, premises, deposits, and other assets and liabilities of the Memphis, Tennessee branches of Trust One Bank, a division of Synovus Bank. | ||||||||||
| |||||||||||
(2) | Amounts consist of litigation settlement expenses, including loss contingency accruals, with respect to certain legal matters. | ||||||||||
(3) | Share and per share data for prior periods has been restated to reflect the 1-for-7 reverse stock split which was effective on May 16, 2014. | ||||||||||
| Synovus | |||||||||||||||
| INCOME STATEMENT DATA | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (In thousands, except per share data) | 2014 | 2013 | 4th Quarter | ||||||||||||
| Fourth | Third | Second | First | Fourth | '14 vs. '13 | ||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | Change | ||||||||||
| Interest income | $ | 234,703 | 233,394 | 232,213 | 228,382 | 233,258 | 0.6 | % | |||||||
| Interest expense | 27,248 | 27,131 | 27,162 | 27,868 | 28,927 | (5.8) | |||||||||
| Net interest income | 207,455 | 206,263 | 205,051 | 200,514 | 204,331 | 1.5 | |||||||||
| Provision for loan losses | 8,193 | 3,843 | 12,284 | 9,511 | 14,064 | (41.7) | |||||||||
| Net interest income after provision for loan losses | 199,262 | 202,420 | 192,767 | 191,003 | 190,267 | 4.7 | |||||||||
| Non-interest income: | |||||||||||||||
| Service charges on deposit accounts | 20,287 | 20,159 | 19,238 | 19,214 | 19,647 | 3.3 | |||||||||
| Fiduciary and asset management fees | 11,690 | 11,207 | 11,296 | 11,033 | 10,978 | 6.5 | |||||||||
| Brokerage revenue | 6,887 | 7,281 | 6,707 | 6,213 | 6,307 | 9.2 | |||||||||
| Mortgage banking income | 4,895 | 4,665 | 5,283 | 3,511 | 2,913 | 68.0 | |||||||||
| Bankcard fees | 8,536 | 8,182 | 8,695 | 7,518 | 7,979 | 7.0 | |||||||||
| Investment securities gains, net | - | - | - | 1,331 | 373 | nm | |||||||||
| Other fee income | 4,635 | 4,704 | 4,928 | 4,863 | 6,106 | (24.1) | |||||||||
| Increase (decrease) in fair value of private equity investments, net | 136 | (144) | (119) | (250) | (2,108) | nm | |||||||||
| Gain on sale of Memphis branches, net (1) | - | - | - | 5,789 | - | nm | |||||||||
| Other non-interest income | 7,483 | 7,931 | 7,360 | 10,960 | 7,986 | (6.3) | |||||||||
| Total non-interest income | 64,549 | 63,985 | 63,388 | 70,182 | 60,181 | 7.3 | |||||||||
| Non-interest expense: | |||||||||||||||
| Salaries and other personnel expense | 92,049 | 93,870 | 92,540 | 93,445 | 91,962 | 0.1 | |||||||||
| Net occupancy and equipment expense | 26,370 | 26,956 | 26,425 | 26,056 | 26,314 | 0.2 | |||||||||
| Third-party processing expense | 10,437 | 10,044 | 9,464 | 10,097 | 9,689 | 7.7 | |||||||||
| FDIC insurance and other regulatory fees | 8,262 | 8,013 | 8,049 | 9,719 | 8,699 | (5.0) | |||||||||
| Professional fees | 8,013 | 2,526 | 8,224 | 7,677 | 9,855 | (18.7) | |||||||||
| Advertising expense | 8,102 | 7,177 | 6,281 | 2,477 | 2,458 | 229.6 | |||||||||
| Foreclosed real estate expense, net | 6,502 | 9,074 | 4,063 | 5,681 | 5,064 | 28.4 | |||||||||
| (Gains) losses on other loans held for sale, net | (482) | (176) | (40) | 2,266 | (159) | nm | |||||||||
| Visa indemnification charges | 310 | 1,979 | 356 | 396 | 799 | (61.2) | |||||||||
| Litigation settlement expenses (2) | 463 | 12,349 | - | - | 10,000 | (95.4) | |||||||||
| Restructuring charges | 3,484 | 809 | 7,716 | 8,577 | 3,770 | (7.6) | |||||||||
| Other operating expenses | 21,373 | 21,128 | 19,127 | 17,770 | 22,287 | (4.1) | |||||||||
| Total non-interest expense | 184,883 | 193,749 | 182,205 | 184,161 | 190,738 | (3.1) | |||||||||
| Income before income taxes | 78,928 | 72,656 | 73,950 | 77,024 | 59,710 | 32.2 | |||||||||
| Income tax expense | 25,757 | 25,868 | 27,078 | 28,608 | 21,130 | 21.9 | |||||||||
| Net income | 53,171 | 46,788 | 46,872 | 48,416 | 38,580 | 37.8 | |||||||||
| Dividends on preferred stock | 2,559 | 2,559 | 2,559 | 2,559 | 2,730 | (6.3) | |||||||||
| Net income available to common shareholders | $ | 50,612 | 44,229 | 44,313 | 45,857 | 35,850 | 41.2 | % | |||||||
| Net income per common share, basic (3) | $ | 0.37 | 0.32 | 0.32 | 0.33 | 0.26 | 43.1 | % | |||||||
| Net income per common share, diluted (3) | 0.37 | 0.32 | 0.32 | 0.33 | 0.26 | 42.8 | |||||||||
| Cash dividends declared per common share (3) | 0.10 | 0.07 | 0.07 | 0.07 | 0.07 | 42.9 | |||||||||
| Return on average assets | 0.79 | % | 0.70 | % | 0.71 | 0.75 | 0.58 | 36.2 | |||||||
| Return on average common equity | 6.89 | 5.97 | 6.14 | 6.52 | 5.04 | 36.7 | |||||||||
| Weighted average common shares outstanding, basic (3) | 137,031 | 139,043 | 138,991 | 138,932 | 138,897 | (1.3) | |||||||||
| Weighted average common shares outstanding, diluted (3) | 137,831 | 139,726 | 139,567 | 139,504 | 139,419 | (1.1) | |||||||||
| nm - not meaningful | |||||||||||||||
| * - ratios are annualized | |||||||||||||||
(1) | Consists of gain, net of associated costs, from the sale of certain loans, premises, deposits, and other assets and liabilities of the Memphis, Tennessee branches of Trust One Bank, a division of Synovus Bank. | ||||||||||||||
| |||||||||||||||
(2) | Amounts consist of litigation settlement expenses, including loss contingency accruals, with respect to certain legal matters. Amounts for other periods presented herein are not reported separately as amounts are not material. | ||||||||||||||
| |||||||||||||||
(3) | Share and per share data for prior periods has been restated to reflect the 1-for-7 reverse stock split which was effective on May 16, 2014. | ||||||||||||||
| Synovus | ||||||||||
| BALANCE SHEET DATA | December 31, 2014 | September 30, 2014 | December 31, 2013 | |||||||
| (Unaudited) | ||||||||||
| (In thousands, except share data) | ||||||||||
| ASSETS | ||||||||||
| Cash and cash equivalents | $ | 485,489 | 386,402 | 469,630 | ||||||
| Interest bearing funds with Federal Reserve Bank | 721,362 | 750,446 | 644,528 | |||||||
| Interest earning deposits with banks | 11,810 | 13,612 | 24,325 | |||||||
Federal funds sold and securities purchased under resale agreements | 73,111 | 70,918 | 80,975 | |||||||
| Trading account assets, at fair value | 13,863 | 12,705 | 6,113 | |||||||
| Mortgage loans held for sale, at fair value | 63,328 | 72,333 | 45,384 | |||||||
| Other loans held for sale | 3,606 | 338 | 10,685 | |||||||
| Investment securities available for sale, at fair value | 3,041,406 | 3,050,257 | 3,199,358 | |||||||
| Loans, net of deferred fees and costs | 21,097,699 | 20,588,566 | 20,057,798 | |||||||
| Allowance for loan losses | (261,317) | (269,376) | (307,560) | |||||||
| Loans, net | 20,836,382 | 20,319,190 | 19,750,238 | |||||||
| Premises and equipment, net | 455,235 | 456,633 | 468,871 | |||||||
| Goodwill | 24,431 | 24,431 | 24,431 | |||||||
| Other intangible assets, net | 1,265 | 1,471 | 3,415 | |||||||
| Other real estate | 85,472 | 81,636 | 112,629 | |||||||
| Deferred tax asset, net | 622,464 | 656,151 | 744,646 | |||||||
| Other assets | 612,007 | 622,587 | 616,376 | |||||||
| Total assets | $ | 27,051,231 | 26,519,110 | 26,201,604 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
| Liabilities: | ||||||||||
| Deposits: | ||||||||||
| Non-interest bearing deposits | $ | 6,228,472 | 5,813,809 | 5,642,751 | ||||||
| Interest bearing deposits, excluding brokered deposits | 13,660,830 | 13,609,038 | 14,140,037 | |||||||
| Brokered deposits | 1,642,398 | 1,566,934 | 1,094,002 | |||||||
| Total deposits | 21,531,700 | 20,989,781 | 20,876,790 | |||||||
| Federal funds purchased and securities sold under repurchase agreements | 126,916 | 107,160 | 148,132 | |||||||
| Long-term debt | 2,140,319 | 2,130,934 | 2,033,141 | |||||||
| Other liabilities | 211,026 | 214,690 | 194,556 | |||||||
| Total liabilities | 24,009,961 | 23,442,565 | 23,252,619 | |||||||
| Shareholders' equity: | ||||||||||
| Series C Preferred Stock - no par value, 5,200,000 shares outstanding at December 31, 2014, September 30, 2014, and December 31, 2013 | 125,980 | 125,980 | 125,862 | |||||||
| Common stock - $1.00 par value. 136,122,843 shares outstanding at December 31, 2014, 139,064,621 shares outstanding at September 30, 2014, and 138,907,351 shares outstanding at December 31, 2013 (1) | 139,950 | 139,878 | 139,721 | |||||||
| Additional paid-in capital | 2,960,825 | 2,974,319 | 2,976,348 | |||||||
| Treasury stock, at cost - 3,827,579 shares at December 31, 2014, 813,350 shares at September 30, 2014 and December 31, 2013(1) | (187,774) | (114,176) | (114,176) | |||||||
| Accumulated other comprehensive loss, net | (12,605) | (24,827) | (41,258) | |||||||
| Retained earnings (deficit) | 14,894 | (24,629) | (137,512) | |||||||
| Total shareholders' equity | 3,041,270 | 3,076,545 | 2,948,985 | |||||||
| Total liabilities and shareholders' equity | $ | 27,051,231 | 26,519,110 | 26,201,604 | ||||||
(1) | Share and per share data for prior periods has been restated to reflect the 1-for-7 reverse stock split which was effective on May 16, 2014. | |||||||||
| Synovus | |||||||||||||||
| AVERAGE BALANCES AND YIELDS/RATES (1) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||
| 2014 | 2013 | ||||||||||||||
| Fourth | Third | Second | First | Fourth | |||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||
| Interest Earning Assets | |||||||||||||||
| Taxable investment securities (2) | $ | 3,027,769 | 3,035,940 | 3,091,537 | 3,181,678 | 3,196,561 | |||||||||
| Yield | 1.85 | % | 1.84 | 1.87 | 1.91 | 1.90 | |||||||||
| Tax-exempt investment securities (2) (4) | $ | 5,030 | 5,168 | 5,781 | 6,421 | 7,758 | |||||||||
| Yield (taxable equivalent) | 6.19 | % | 6.21 | 6.23 | 6.24 | 6.14 | |||||||||
| Trading account assets | $ | 12,879 | 16,818 | 16,011 | 20,346 | 10,021 | |||||||||
| Yield | 3.08 | % | 2.52 | 2.25 | 3.16 | 4.60 | |||||||||
| Commercial loans (3) (4) | $ | 16,956,294 | 16,603,287 | 16,673,930 | 16,451,594 | 16,217,373 | |||||||||
| Yield | 4.09 | % | 4.17 | 4.19 | 4.21 | 4.28 | |||||||||
| Consumer loans (3) | $ | 3,895,397 | 3,814,160 | 3,695,010 | 3,628,347 | 3,615,836 | |||||||||
| Yield | 4.42 | % | 4.44 | 4.51 | 4.53 | 4.50 | |||||||||
| Allowance for loan losses | $ | (268,659) | (274,698) | (293,320) | (307,078) | (316,001) | |||||||||
| Loans, net (3) | $ | 20,583,032 | 20,142,749 | 20,075,620 | 19,772,863 | 19,517,208 | |||||||||
| Yield | 4.22 | % | 4.29 | 4.32 | 4.34 | 4.40 | |||||||||
| Mortgage loans held for sale | $ | 60,892 | 70,766 | 59,678 | 38,699 | 46,036 | |||||||||
| Yield | 3.84 | % | 3.96 | 4.13 | 4.15 | 3.94 | |||||||||
| Federal funds sold, due from Federal Reserve Bank, | |||||||||||||||
| and other short-term investments | $ | 898,871 | 974,363 | 843,018 | 935,300 | 1,235,144 | |||||||||
| Yield | 0.23 | % | 0.23 | 0.23 | 0.23 | 0.24 | |||||||||
| Federal Home Loan Bank and Federal Reserve Bank stock (5) | $ | 75,547 | 78,131 | 76,172 | 82,585 | 70,815 | |||||||||
| Yield | 4.53 | % | 3.57 | 4.15 | 3.21 | 2.85 | |||||||||
| Total interest earning assets | $ | 24,664,020 | 24,323,935 | 24,167,817 | 24,037,892 | 24,083,543 | |||||||||
| Yield | 3.78 | % | 3.81 | 3.86 | 3.86 | 3.85 | |||||||||
| Interest Bearing Liabilities | |||||||||||||||
| Interest bearing demand deposits | $ | 3,781,389 | 3,722,599 | 3,830,956 | 3,878,590 | 4,102,398 | |||||||||
| Rate | 0.19 | % | 0.19 | 0.19 | 0.19 | 0.19 | |||||||||
| Money market accounts | $ | 6,009,897 | 6,044,138 | 6,033,523 | 6,077,357 | 6,161,893 | |||||||||
| Rate | 0.29 | % | 0.29 | 0.31 | 0.32 | 0.33 | |||||||||
| Savings deposits | $ | 638,813 | 645,654 | 644,103 | 616,962 | 605,054 | |||||||||
| Rate | 0.07 | % | 0.07 | 0.09 | 0.10 | 0.10 | |||||||||
| Time deposits under $100,000 | $ | 1,315,905 | 1,335,848 | 1,364,322 | 1,423,487 | 1,491,673 | |||||||||
| Rate | 0.57 | % | 0.56 | 0.57 | 0.59 | 0.61 | |||||||||
| Time deposits over $100,000 | $ | 1,877,602 | 1,871,136 | 1,824,349 | 1,956,925 | 2,049,094 | |||||||||
| Rate | 0.76 | % | 0.75 | 0.74 | 0.76 | 0.80 | |||||||||
| Brokered money market accounts | $ | 191,103 | 174,538 | 184,233 | 207,681 | 210,380 | |||||||||
| Rate | 0.28 | % | 0.27 | 0.27 | 0.26 | 0.27 | |||||||||
| Brokered time deposits | $ | 1,411,252 | 1,320,082 | 1,216,934 | 1,027,167 | 984,047 | |||||||||
| Rate | 0.58 | % | 0.52 | 0.51 | 0.62 | 0.65 | |||||||||
| Total interest bearing deposits | $ | 15,225,961 | 15,113,995 | 15,098,420 | 15,188,169 | 15,604,539 | |||||||||
| Rate | 0.36 | % | 0.35 | 0.36 | 0.38 | 0.39 | |||||||||
| Federal funds purchased and securities sold under | |||||||||||||||
| repurchase agreements | $ | 186,993 | 171,429 | 219,490 | 215,027 | 216,757 | |||||||||
| Rate | 0.07 | % | 0.08 | 0.13 | 0.14 | 0.15 | |||||||||
| Long-term debt | $ | 2,084,636 | 2,142,705 | 2,099,578 | 2,156,836 | 1,886,223 | |||||||||
| Rate | 2.55 | % | 2.54 | 2.58 | 2.52 | 2.85 | |||||||||
| Total interest bearing liabilities | $ | 17,497,590 | 17,428,129 | 17,417,488 | 17,560,032 | 17,707,519 | |||||||||
| Rate | 0.62 | % | 0.62 | 0.62 | 0.64 | 0.65 | |||||||||
| Non-interest bearing demand deposits | $ | 6,110,047 | 5,824,592 | 5,765,287 | 5,537,090 | 5,545,529 | |||||||||
| Effective cost of funds | 0.44 | % | 0.44 | 0.45 | 0.47 | 0.47 | |||||||||
| Net interest margin | 3.34 | % | 3.37 | 3.41 | 3.39 | 3.38 | |||||||||
| Taxable equivalent adjustment | $ | 372 | 408 | 443 | 455 | 481 | |||||||||
| (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) | ||||||||||||||||
| December 31, 2014 | ||||||||||||||||
| 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 | $ | 1,205,095 | 5.7 | % | $ | 224 | 0.1 | % | ||||||||
| Hotels | 692,018 | 3.3 | 427 | 0.2 | ||||||||||||
| Office Buildings | 1,188,389 | 5.6 | 488 | 0.1 | ||||||||||||
| Shopping Centers | 881,396 | 4.2 | 5,726 | 2.9 | ||||||||||||
| Commercial Development | 121,990 | 0.6 | 12,303 | 6.2 | ||||||||||||
| Warehouses | 558,594 | 2.6 | 184 | 0.1 | ||||||||||||
| Other Investment Property | 540,840 | 2.6 | 1,368 | 0.7 | ||||||||||||
| Total Investment Properties | 5,188,322 | 24.6 | 20,720 | 10.4 | ||||||||||||
| 1-4 Family Construction | 148,821 | 0.7 | 309 | 0.2 | ||||||||||||
| 1-4 Family Investment Mortgage | 808,893 | 3.8 | 9,973 | 5.0 | ||||||||||||
| Residential Development | 177,848 | 0.8 | 13,915 | 7.0 | ||||||||||||
| Total 1-4 Family Properties | 1,135,562 | 5.4 | 24,197 | 12.2 | ||||||||||||
| Land Acquisition | 577,424 | 2.7 | 34,120 | 17.3 | ||||||||||||
| Total Commercial Real Estate | 6,901,308 | 32.7 | 79,037 | 39.9 | ||||||||||||
| Commercial, Financial, and Agricultural | 6,226,034 | 29.5 | 40,614 | 20.5 | ||||||||||||
| Owner-Occupied | 4,066,979 | 19.3 | 26,099 | 13.2 | ||||||||||||
| Total Commercial & Industrial | 10,293,013 | 48.8 | 66,713 | 33.7 | ||||||||||||
| Home Equity Lines | 1,683,998 | 8.0 | 16,434 | 8.3 | ||||||||||||
| Consumer Mortgages | 1,694,061 | 8.0 | 33,278 | 16.9 | ||||||||||||
| Credit Cards | 253,649 | 1.3 | - | - | ||||||||||||
| Other Retail Loans | 302,460 | 1.4 | 2,295 | 1.2 | ||||||||||||
| Total Retail | 3,934,168 | 18.6 | 52,007 | 26.3 | ||||||||||||
| Unearned Income | (30,790) | (0.1) | - | nm | ||||||||||||
| Total | $ | 21,097,699 | 100.0 | % | $ | 197,757 | 100.0 | % | ||||||||
| LOANS OUTSTANDING BY TYPE COMPARISON | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| Total Loans | 4Q14 vs. 3Q14 | 4Q14 vs. 4Q13 | ||||||||||||||
| Loan Type | December 31, 2014 | September 30, 2014 | % change (1) | December 31, 2013 | % change | |||||||||||
| Multi-Family | $ | 1,205,095 | 1,152,728 | 18.0 | % | 957,002 | 25.9 | % | ||||||||
| Hotels | 692,018 | 668,603 | 13.9 | 687,177 | 0.7 | |||||||||||
| Office Buildings | 1,188,389 | 1,107,012 | 29.2 | 889,499 | 33.6 | |||||||||||
| Shopping Centers | 881,396 | 856,399 | 11.6 | 854,607 | 3.1 | |||||||||||
| Commercial Development | 121,990 | 131,011 | (27.3) | 156,344 | (22.0) | |||||||||||
| Warehouses | 558,594 | 565,011 | (4.5) | 564,448 | (1.0) | |||||||||||
| Other Investment Property | 540,840 | 538,282 | 1.9 | 507,409 | 6.6 | |||||||||||
| Total Investment Properties | 5,188,322 | 5,019,046 | 13.4 | 4,616,486 | 12.4 | |||||||||||
| 1-4 Family Construction | 148,821 | 143,888 | 13.6 | 138,973 | 7.1 | |||||||||||
| 1-4 Family Investment Mortgage | 808,893 | 813,867 | (2.4) | 857,556 | (5.7) | |||||||||||
| Residential Development | 177,848 | 179,799 | (4.3) | 188,531 | (5.7) | |||||||||||
| Total 1-4 Family Properties | 1,135,562 | 1,137,554 | (0.7) | 1,185,060 | (4.2) | |||||||||||
| Land Acquisition | 577,424 | 588,779 | (7.7) | 705,431 | (18.1) | |||||||||||
| Total Commercial Real Estate | 6,901,308 | 6,745,379 | 9.2 | 6,506,977 | 6.1 | |||||||||||
| Commercial, Financial, and Agricultural | 6,226,034 | 6,003,409 | 14.7 | 5,895,265 | 5.6 | |||||||||||
| Owner-Occupied | 4,066,979 | 4,013,666 | 5.3 | 4,036,186 | 0.8 | |||||||||||
| Total Commercial & Industrial | 10,293,013 | 10,017,075 | 10.9 | 9,931,451 | 3.6 | |||||||||||
| Home Equity Lines | 1,683,998 | 1,685,972 | (0.5) | 1,587,541 | 6.1 | |||||||||||
| Consumer Mortgages | 1,694,061 | 1,621,904 | 17.7 | 1,519,068 | 11.5 | |||||||||||
| Credit Cards | 253,649 | 253,853 | (0.3) | 256,846 | (1.2) | |||||||||||
| Other Retail Loans | 302,460 | 293,232 | 12.5 | 284,777 | 6.2 | |||||||||||
| Total Retail | 3,934,168 | 3,854,961 | 8.2 | 3,648,232 | 7.8 | |||||||||||
| Unearned Income | (30,790) | (28,849) | 26.7 | (28,862) | 6.7 | |||||||||||
| Total | $ | 21,097,699 | 20,588,566 | 9.8 | % | 20,057,798 | 5.2 | % | ||||||||
| (1) Percentage change is annualized. | ||||||||||||||||
| Synovus | |||||||||||||||
| CREDIT QUALITY DATA | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (Dollars in thousands) | 2014 | 2013 | 4th Quarter | ||||||||||||
| Fourth | Third | Second | First | Fourth | '14 vs. '13 | ||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | Change | ||||||||||
| Non-performing Loans | $ | 197,757 | 242,382 | 259,547 | 384,324 | 416,300 | (52.5) | % | |||||||
| Other Loans Held for Sale (1) | 3,606 | 338 | 2,045 | 3,120 | 10,685 | (66.3) | |||||||||
| Other Real Estate | 85,472 | 81,636 | 101,533 | 110,757 | 112,629 | (24.1) | |||||||||
| Non-performing Assets | 286,835 | 324,356 | 363,125 | 498,201 | 539,614 | (46.8) | |||||||||
| Allowance for Loan Losses | 261,317 | 269,376 | 277,783 | 300,871 | 307,560 | (15.0) | |||||||||
| Net Charge-Offs - Quarter | 16,253 | 12,250 | 35,371 | 15,181 | 25,116 | (35.3) | |||||||||
| Net Charge-Offs - YTD | 79,055 | 62,802 | 50,552 | 15,181 | 135,443 | (41.6) | |||||||||
| Net Charge-Offs / Average Loans - Quarter (2) | 0.31 | % | 0.24 | 0.69 | 0.30 | 0.51 | |||||||||
| Non-performing Loans / Loans | 0.94 | 1.18 | 1.27 | 1.91 | 2.08 | ||||||||||
| Non-performing Assets / Loans, Other Loans Held for Sale & ORE | 1.35 | 1.57 | 1.77 | 2.46 | 2.67 | ||||||||||
| Allowance / Loans | 1.24 | 1.31 | 1.36 | 1.49 | 1.53 | ||||||||||
| Allowance / Non-performing Loans | 132.14 | 111.14 | 107.03 | 78.29 | 73.88 | ||||||||||
| Allowance / Non-performing Loans (3) | 197.22 | 176.47 | 177.62 | 100.16 | 95.43 | ||||||||||
| Past Due Loans over 90 days and Still Accruing | $ | 4,637 | 4,067 | 4,798 | 6,563 | 4,489 | 3.3 | % | |||||||
| As a Percentage of Loans Outstanding | 0.02 | % | 0.02 | 0.02 | 0.03 | 0.02 | |||||||||
| Total Past Dues Loans and Still Accruing | $ | 51,251 | 72,712 | 60,428 | 75,038 | 72,600 | (29.4) | ||||||||
| As a Percentage of Loans Outstanding | 0.24 | % | 0.35 | 0.30 | 0.37 | 0.36 | |||||||||
| Accruing Troubled Debt Restructurings (TDRs) | $ | 348,427 | 408,737 | 444,108 | 495,390 | 556,410 | (37.4) | ||||||||
| (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) | |||||||||||||||
| December 31, 2014 | December 31, 2013 | ||||||||||||||
| Tier 1 Capital | $ | 2,543,625 | 2,351,493 | ||||||||||||
| Total Risk-Based Capital | 2,987,406 | 2,900,865 | |||||||||||||
| Tier 1 Capital Ratio | 10.86 | % | 10.54 | ||||||||||||
| Tier 1 Common Equity Ratio | 10.28 | 9.93 | |||||||||||||
| Total Risk-Based Capital Ratio | 12.75 | 13.00 | |||||||||||||
| Tier 1 Leverage Ratio | 9.67 | 9.13 | |||||||||||||
| Common Equity as a Percentage of Total Assets (2) | 10.78 | 10.77 | |||||||||||||
| Tangible Common Equity as a Percentage of Tangible Assets (3) | 10.69 | 10.68 | |||||||||||||
| Tangible Common Equity as a Percentage of Risk Weighted Assets (3) | 12.33 | 12.53 | |||||||||||||
| Book Value Per Common Share (4)(5) | 21.42 | 20.32 | |||||||||||||
| Tangible Book Value Per Common Share (3)(5) | 21.23 | 20.12 | |||||||||||||
| (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. | |||||||||||||||
| (5) Per share data for prior periods has been restated to reflect the 1-for-7 reverse stock split which was effective on May 16, 2014. | |||||||||||||||
Synovus Financial Corp.
Media Contact:
Greg
Hudgison, 706-644-0528
Media Relations
or
Investor
Contact:
Bob May, 706-649-3555
Investor Relations
Source: Synovus Financial Corp.
