EX-99.2 3 snv093020198kexhibit99.htm EXHIBIT 99.2 Exhibit
Synovus
 
 
 
 
 
Exhibit 99.2

 
 
 
 
 
 
 
 
 
INCOME STATEMENT DATA
 
 
 
(Unaudited)
 
Nine Months Ended
 
(Dollars in thousands, except per share data)
 
September 30,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
 
2018
 
% Change
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
$
1,544,385

 
$
986,911

 
56.5
 %
 
Interest expense
 
347,850

 
136,431

 
155.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
 
1,196,535

 
850,480

 
40.7

 
Provision for loan losses
 
63,250

 
39,548

 
59.9

 
 
 
 
 
 
 
 
 
Net interest income after provision for loan losses
 
1,133,285

 
810,932

 
39.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest income:
 
 
 
 
 
 
 
    Service charges on deposit accounts
 
65,805

 
60,521

 
8.7

 
    Fiduciary and asset management fees
 
42,743

 
40,881

 
4.6

 
    Card fees
 
34,334

 
31,640

 
8.5

 
    Brokerage revenue
 
30,502

 
26,125

 
16.8

 
    Mortgage banking income
 
23,313

 
15,177

 
53.6

 
    Capital markets income
 
21,557

 
3,826

 
463.4

 
    Income from bank-owned life insurance
 
15,605

 
11,720

 
33.1

 
    Investment securities losses, net
 
(5,502
)
 
(1,296
)
 
 nm

 
    Gain on sale and fair value increase/(decrease) of private equity
    investments
 
3,507

 
(2,659
)
 
 nm

 
    Other non-interest income
 
26,081

 
26,166

 
(0.3
)
 
 
 
 
 
 
 
 
 
Total non-interest income
 
257,945

 
212,101

 
21.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest expense:
 
 
 
 
 
 
 
   Salaries and other personnel expense
 
424,952

 
339,924

 
25.0

 
   Net occupancy and equipment expense
 
119,262

 
96,222

 
23.9

 
   Third-party processing expense
 
55,403

 
43,822

 
26.4

 
   Professional fees
 
25,379

 
18,087

 
40.3

 
   FDIC insurance and other regulatory fees
 
21,872

 
19,765

 
10.7

 
   Advertising expense
 
16,996

 
14,046

 
21.0

 
   Amortization of intangibles
 
8,702

 
875

 
nm

 
   Merger-related expense
 
57,493

 
6,684

 
 nm

 
   Earnout liability adjustments
 
10,457

 
11,652

 
(10.3
)
 
   Loss on early extinguishment of debt, net
 
4,592

 

 
 nm

 
   Valuation adjustment to Visa derivative
 
2,500

 
2,328

 
7.4

 
   Other operating expenses
 
85,239

 
66,126

 
28.9

 
 
 
 
 
 
 
 
 
Total non-interest expense
 
832,847

 
619,531

 
34.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
558,383

 
403,502

 
38.4

 
Income tax expense
 
146,287

 
80,095

 
82.6

 
 
 
 
 
 
 
 
 
Net income
 
412,096

 
323,407

 
27.4

 
 
 
 
 
 
 
 
 
Less: Preferred stock dividends and redemption charge
 
14,591

 
14,848

 
(1.7
)
 
 
 
 
 
 
 
 
 
Net income available to common shareholders
 
$
397,505

 
$
308,559

 
28.8
 %
 
 
 
 
 
 
 
 
 
Net income per common share, basic
 
2.53


2.61

 
(3.0
)%
 
 
 
 
 
 
 
 
 
Net income per common share, diluted
 
2.51


2.60

 
(3.5
)
 
 
 
 
 
 
 
 
 
Cash dividends declared per common share
 
0.90

 
0.75

 
20.0

 
 
 
 
 
 
 
 
 
Return on average assets*
 
1.18
%
 
1.37

 
(19
)bps
 
Return on average common equity*
 
12.09

 
14.65

 
(256
)
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding, basic
 
156,819

 
118,096

 
32.8
 %
 
Weighted average common shares outstanding, diluted
 
158,595

 
118,847

 
33.4

 
 
 
 
 
 
 
 
 
 nm - not meaningful
 
 
 
 
 
 
 
 bps - basis points
 
 
 
 
 
 
 
* - ratios are annualized
 
 
 
 
 
 





Synovus
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INCOME STATEMENT DATA
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands, except per share data)
2019
 
2018
 
Third Quarter
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Third Quarter
 
Second Quarter
 
First Quarter
 
Fourth Quarter
 
Third Quarter
 
'19 vs '18
 
 
 
 
 
% Change
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
523,415

 
516,131

 
504,839

 
357,394

 
343,942

 
52.2
 %
 
Interest expense
121,318

 
118,869

 
107,664

 
59,461

 
52,323

 
131.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
402,097

 
397,262

 
397,175

 
297,933

 
291,619

 
37.9

 
Provision for loan losses
27,562

 
12,119

 
23,569

 
12,148

 
14,982

 
84.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income after provision for loan losses
374,535

 
385,143

 
373,606

 
285,785

 
276,637

 
35.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest income:
 
 
 
 
 
 
 
 
 
 
 
 
Service charges on deposit accounts
22,952

 
21,994

 
20,859

 
20,320

 
20,582

 
11.5

 
Fiduciary and asset management fees
14,686

 
14,478

 
13,578

 
13,805

 
13,462

 
9.1

 
Card fees
12,297

 
11,161

 
10,877

 
10,862

 
10,608

 
15.9

 
Brokerage revenue
11,071

 
10,052

 
9,379

 
9,241

 
9,041

 
22.5

 
Mortgage banking income
10,351

 
7,907

 
5,054

 
3,781

 
5,290

 
95.7

 
Capital markets income
7,396

 
8,916

 
5,245

 
1,977

 
1,155

 
540.3

 
Income from bank-owned life insurance
5,139

 
5,176

 
5,290

 
3,682

 
3,771

 
36.3

 
Investment securities (losses)/gains, net
(3,731
)
 
(1,845
)
 
75

 

 

 
nm

 
Gain on sale and fair value increase/(decrease) of private equity investments
1,194

 
1,455

 
858

 
(2,084
)
 
434

 
nm

 
Other non-interest income
7,405

 
10,513

 
8,163

 
6,407

 
7,325

 
1.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total non-interest income
88,760

 
89,807

 
79,378

 
67,991

 
71,668

 
23.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest expense:
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and other personnel expense
142,516

 
143,009

 
139,427

 
113,496

 
114,341

 
24.6

 
Net occupancy and equipment expense
41,017

 
39,851

 
38,394

 
34,260

 
32,088

 
27.8

 
Third-party processing expense
18,528

 
19,118

 
17,758

 
14,803

 
14,810

 
25.1

 
Professional Fees
9,719

 
9,312

 
6,348

 
8,650

 
6,298

 
54.3

 
FDIC insurance and other regulatory fees
7,242

 
7,867

 
6,761

 
4,728

 
6,430

 
12.6

 
Advertising expense
5,950

 
5,923

 
5,123

 
6,834

 
3,735

 
59.3

 
   Amortization of intangibles
2,901

 
2,410

 
3,392

 
292

 
292

 
nm

 
Merger-related expense
353

 
7,401

 
49,738

 
3,381

 
6,684

 
nm

 
Earnout liability adjustments
10,457

 

 

 

 
11,652

 
(10.3
)
 
   Loss on early extinguishment of debt, net
4,592

 

 

 

 

 
nm

 
   Valuation adjustment to Visa derivative
2,500

 

 

 

 

 
nm

 
Other operating expenses
30,535

 
29,235

 
25,469

 
23,478

 
23,967

 
27.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total non-interest expense
276,310

 
264,126

 
292,410

 
209,922

 
220,297

 
25.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
186,985

 
210,824

 
160,574

 
143,854

 
128,008

 
46.1

 
Income tax expense
51,259

 
54,640

 
40,388

 
38,784

 
18,949

 
170.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
135,726

 
156,184

 
120,186

 
105,070

 
109,059

 
24.5

 
 
 
 
 
 
 
 
 
 
 
 


 
Less: Preferred stock dividends and redemption charge
8,291

 
3,150

 
3,150

 
3,151

 
9,729

 
(14.8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income available to common shareholders
$
127,435

 
153,034

 
117,036

 
101,919

 
99,330

 
28.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income per common share, basic
$
0.84

 
0.97

 
0.73

 
0.88

 
0.85

 
(1.2
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income per common share, diluted
0.83

 
0.96

 
0.72

 
0.87

 
0.84

 
(1.6
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash dividends declared per common share
0.30

 
0.30

 
0.30

 
0.25

 
0.25

 
20.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets *
1.14
%
 
1.34

 
1.06

 
1.29

 
1.36

 
(22
)bps
 
Return on average common equity *
11.36

 
13.90

 
10.98

 
14.25

 
13.95

 
(259
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding, basic
152,238

 
157,389

 
160,927

 
116,303

 
117,241

 
29.9
 %
 
Weighted average common shares outstanding, diluted
154,043

 
159,077

 
162,760

 
116,986

 
118,095

 
30.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 nm - not meaningful
 
 
 
 
 
 
 
 
 
 
 
 
 bps - basis points
 
 
 
 
 
 
 
 
 
 
 
 
* - ratios are annualized
 
 
 
 
 
 
 
 
 
 
 





Synovus
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BALANCE SHEET DATA
 
September 30, 2019
 
December 31, 2018
 
September 30, 2018
 
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands, except share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
Cash and due from banks
 
$
611,496

 
$
468,426

 
$
436,540

 
Interest-bearing funds with Federal Reserve Bank
 
480,913

 
641,476

 
515,493

 
Interest earning deposits with banks
 
20,086

 
19,841

 
34,470

 
Federal funds sold and securities purchased under resale agreements
 
69,975

 
13,821

 
25,430

 
Cash and cash equivalents
 
1,182,470

 
1,143,564

 
1,011,933

 
 
 
 
 
 
 
 
 
Investment securities available for sale, at fair value
 
6,892,162

 
3,991,632

 
3,883,574

 
Mortgage loans held for sale, at fair value
 
129,415

 
37,129

 
37,276

 
 
 
 
 
 
 
 
 
Loans
 
36,417,826

 
25,946,573

 
25,577,116

 
Allowance for loan losses
 
(265,013
)
 
(250,555
)
 
(251,450
)
 
Loans, net
 
36,152,813

 
25,696,018

 
25,325,666

 
 
 
 
 
 
 
 
 
Cash surrender value of bank-owned life insurance
 
771,458

 
554,134

 
551,061

 
Premises and equipment, net
 
487,053

 
434,307

 
431,012

 
Goodwill
 
487,865

 
57,315

 
57,315

 
Other intangible assets
 
58,572

 
9,875

 
10,166

 
Other assets
 
1,499,374

 
745,218

 
767,117

 
Total assets
 
$
47,661,182

 
$
32,669,192

 
$
32,075,120

 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
Non-interest-bearing deposits
 
$
9,586,148

 
$
7,650,967

 
$
7,628,736

 
Interest-bearing deposits
 
27,846,922

 
19,069,355

 
18,804,922

 
 
 
 
 
 
 
 
 
Total deposits
 
37,433,070

 
26,720,322

 
26,433,658

 
 
 
 
 
 
 
 
 
Federal funds purchased and securities sold under repurchase agreements
 
197,419

 
237,692

 
191,145

 
Other short-term borrowings
 
2,233,593

 
650,000

 
478,540

 
Long-term debt
 
2,153,600

 
1,657,157

 
1,656,909

 
Other liabilities
 
774,662

 
270,419

 
274,795

 
Total liabilities
 
42,792,344

 
29,535,590

 
29,035,047

 
 
 
 
 
 
 
 
 
Shareholders' equity:
 

 

 
 
 
Preferred stock - no par value. Authorized 100,000,000 shares;
22,000,000 shares issued and outstanding at September 30, 2019, 8,000,000 shares issued and outstanding at December 31, 2018 and September 30, 2018
 
536,550

 
195,140

 
195,138

 
Common stock - $1.00 par value. Authorized 342,857,143 shares; 166,201,048 issued at September 30, 2019, 143,300,449 issued at December 31, 2018, and 143,093,317 issued at September 30, 2018; 147,594,000 outstanding at September 30, 2019, 115,865,510 outstanding at December 31, 2018, and 116,714,463 outstanding at September 30, 2018
 
166,201

 
143,300

 
143,093

 
Additional paid-in capital
 
3,801,158

 
3,060,561

 
3,049,233

 
Treasury stock, at cost – 18,607,048 shares at September 30, 2019, 27,434,939 shares at December 31, 2018, and 26,378,854 shares at September 30, 2018
 
(680,081
)
 
(1,014,746
)
 
(974,478
)
 
Accumulated other comprehensive income (loss), net
 
75,933

 
(94,420
)
 
(143,720
)
 
Retained earnings
 
969,077

 
843,767

 
770,807

 
Total shareholders’ equity
 
4,868,838

 
3,133,602

 
3,040,073

 
Total liabilities and shareholders' equity
 
$
47,661,182

 
$
32,669,192

 
$
32,075,120








Synovus
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AVERAGE BALANCES AND YIELDS/RATES (1)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
2019
 
2018
 
 
 
Third
Second
First
 
Fourth
Third
 
 
 
Quarter
Quarter
Quarter
 
Quarter
Quarter
 
Interest Earning Assets
 
 
 
 
 
 
 
 
Investment securities (2) (4)
 
$
6,831,036

6,955,386

6,536,199

 
4,073,685

4,061,328

 
Yield
 
3.14
%
3.03

3.06

 
2.45

2.39

 
Trading account assets (5)
 
$
5,519

4,853

2,049

 
7,493

16,646

 
Yield
 
4.01
%
1.83

1.30

 
1.90

2.52

 
Commercial loans (3) (4)
 
$
26,568,194

26,353,973

26,140,672

 
19,150,252

19,025,830

 
Yield
 
5.09
%
5.13

5.16

 
5.13

4.98

 
Consumer loans (3)
 
$
9,633,603

9,423,427

9,180,679

 
6,476,026

6,298,643

 
Yield
 
5.08
%
5.17

5.10

 
4.85

4.80

 
Allowance for loan losses
 
$
(258,024
)
(259,284
)
(252,815
)
 
(251,098
)
(251,684
)
 
Loans, net (3)
 
$
35,943,773

35,518,116

35,068,536

 
25,375,180

25,072,789

 
Yield
 
5.13
%
5.17

5.17

 
5.11

4.99

 
Mortgage loans held for sale
 
$
99,556

70,497

34,913

 
36,477

49,030

 
Yield
 
3.93
%
4.27

4.48

 
4.79

4.71

 
Federal funds sold, due from Federal Reserve Bank, and other short-term investments
 
$
513,160

511,488

679,477

 
641,832

544,704

 
Yield
 
2.08
%
2.37

2.45

 
2.20

1.90

 
Federal Home Loan Bank and Federal Reserve Bank Stock (5)
 
$
254,994

234,949

211,408

 
162,369

163,568

 
Yield
 
3.85
%
3.29

4.82

 
4.31

4.41

 
Total interest earning assets
 
$
43,648,038

43,295,289

42,532,582

 
30,297,036

29,908,065

 
Yield
 
4.78
%
4.79

4.80

 
4.69

4.58

 
Interest-Bearing Liabilities
 
 
 
 
 
 
 
 
Interest-bearing demand deposits
 
$
6,138,810

6,335,953

6,393,304

 
4,692,804

4,701,204

 
Rate
 
0.69
%
0.71

0.68

 
0.41

0.38

 
Money Market accounts
 
$
10,138,783

10,024,836

10,244,556

 
8,050,732

7,936,621

 
Rate
 
1.26
%
1.23

1.18

 
0.89

0.72

 
Savings deposits
 
$
900,366

904,183

901,059

 
815,588

824,935

 
Rate
 
0.05
%
0.05

0.06

 
0.04

0.03

 
Time deposits under $100,000
 
$
2,100,492

2,245,878

2,238,568

 
1,242,811

1,205,987

 
Rate
 
1.39
%
1.39

1.24

 
1.16

0.99

 
Time deposits over $100,000
 
$
5,957,691

6,331,665

6,211,067

 
2,478,649

2,273,582

 
Rate
 
1.69
%
1.70

1.60

 
1.67

1.46

 
Non-maturing brokered deposits
 
$
993,078

766,718

937,629

 
349,480

358,277

 
Rate
 
2.47
%
2.46

2.60

 
2.46

2.10

 
Brokered time deposits
 
$
2,119,149

1,985,589

1,845,819

 
1,275,276

1,414,700

 
Rate
 
2.27
%
2.28

2.13

 
2.03

1.94

 
Total interest-bearing deposits
 
$
28,348,369

28,594,822

28,772,002

 
18,905,340

18,715,306

 
Rate
 
1.32
%
1.30

1.24

 
0.96

0.83

 
Federal funds purchased and securities sold under repurchase agreements
 
$
221,045

300,168

233,076

 
194,370

230,504

 
Rate
 
0.22
%
0.20

0.22

 
0.18

0.25

 
Other short-term borrowings
 
$
1,307,370

1,090,581

517,456

 
112,228

146,794

 
Rate
 
2.31
%
2.59

2.58

 
2.51

2.12

 
Long-term debt
 
$
2,286,221

2,114,819

1,983,910

 
1,657,022

1,656,743

 
Rate
 
3.32
%
3.53

3.33

 
3.06

2.87

 
Total interest-bearing liabilities
 
$
32,163,005

32,100,390

31,506,444

 
20,868,960

20,749,347

 
Rate
 
1.47
%
1.48

1.38

 
1.12

0.99

 
Non-interest-bearing demand deposits
 
$
9,365,776

9,304,839

9,054,949

 
8,014,761

7,672,006

 
Cost of funds
 
1.16
%
1.15

1.07

 
0.81

0.73

 
Net interest margin
 
3.69
%
3.69

3.78

 
3.92

3.89

 
Taxable equivalent adjustment 
 
$
819

811

630

 
181

136

 
 
 
 
 
 
 
 
 
 
(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 21%, 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 BY TYPE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Loans
 
Total Originated Loans
 
Total Acquired Loans (1)
 
Total Loans (1)
 
Linked Quarter
 
Total Loans
 
Year/Year
Loan Type
 
September 30, 2019
 
September 30, 2019
 
September 30, 2019
 
June 30, 2019
 
% Change (2)
 
September 30, 2018
 
% Change
Commercial, Financial, and Agricultural
 
$
9,855,881

 
$
8,085,060

 
$
1,770,821

 
$
9,717,746

 
5.6
 %
 
$
7,281,466

 
35.4
 %
Owner-Occupied
 
6,589,391

 
5,588,970

 
1,000,421

 
6,529,797

 
3.6

 
5,221,828

 
26.2

Total Commercial & Industrial
 
16,445,272

 
13,674,030

 
2,771,242

 
16,247,543

 
4.8

 
12,503,294

 
31.5

 
 
 
 
 
 
 
 
 
 

 
 
 
 
Multi-Family
 
2,164,629

 
1,446,034

 
718,595

 
2,113,938

 
9.5

 
1,330,006

 
62.8

Hotels
 
1,267,790

 
778,882

 
488,908

 
1,244,512

 
7.4

 
760,885

 
66.6

Office Buildings
 
2,157,186

 
1,420,951

 
736,235

 
2,291,617

 
(23.3
)
 
1,368,608

 
57.6

Shopping Centers
 
1,683,848

 
939,346

 
744,502

 
1,677,555

 
1.5

 
815,696

 
106.4

Warehouses
 
676,202

 
580,015

 
96,187

 
696,692

 
(11.7
)
 
679,184

 
(0.4
)
Other Investment Property
 
985,108

 
893,131

 
91,977

 
980,786

 
1.7

 
711,311

 
38.5

Total Investment Properties
 
8,934,763

 
6,058,359

 
2,876,404

 
9,005,100

 
(3.1
)
 
5,665,690

 
57.7

 
 
 
 
 
 
 
 
 
 

 
 
 
 
1-4 Family Construction
 
221,905

 
168,918

 
52,987

 
219,032

 
5.2

 
183,044

 
21.2

1-4 Family Investment Mortgage
 
516,859

 
471,206

 
45,653

 
528,358

 
(8.6
)
 
524,152

 
(1.4
)
Total 1-4 Family Properties
 
738,764

 
640,124

 
98,640

 
747,390

 
(4.6
)
 
707,196

 
4.5

 
 
 
 
 
 
 
 
 
 

 
 
 
 
Commercial Development
 
124,213

 
61,209

 
63,004

 
138,840

 
(41.8
)
 
61,608

 
101.6

Residential Development
 
224,662

 
138,704

 
85,958

 
218,850

 
10.5

 
91,578

 
145.3

Land Acquisition
 
263,631

 
207,921

 
55,710

 
238,267

 
42.2

 
186,334

 
41.5

Land and Development
 
612,506

 
407,834

 
204,672

 
595,957

 
11.0

 
339,520

 
80.4

 
 
 
 
 
 
 
 
 
 

 
 
 
 
Total Commercial Real Estate
 
10,286,033

 
7,106,317

 
3,179,716

 
10,348,447

 
(2.4
)
 
6,712,406

 
53.2

 
 
 
 
 
 
 
 
 
 

 
 
 
 
Consumer Mortgages
 
5,470,730

 
3,398,720

 
2,072,010

 
5,407,762

 
4.6

 
2,843,244

 
92.4

Home Equity Lines
 
1,675,092

 
1,616,063

 
59,029

 
1,650,745

 
5.9

 
1,465,419

 
14.3

Credit Cards
 
267,874

 
267,874

 

 
258,283

 
14.7

 
245,149

 
9.3

Other Consumer Loans
 
2,295,486

 
2,285,319

 
10,167

 
2,249,337

 
8.1

 
1,831,385

 
25.3

Total Consumer
 
9,709,182

 
7,567,976

 
2,141,206

 
9,566,127

 
5.9

 
6,385,197

 
52.1

 
 
 
 
 
 
 
 
 
 


 
 
 
 
Unearned Income
 
(22,661
)
 
(22,661
)
 

 
(23,556
)
 
(15.1
)
 
(23,781
)
 
(4.7
)
 
 
 
 
 
 
 
 
 
 

 
 
 
 
Total
 
$
36,417,826

 
$
28,325,662

 
$
8,092,164

 
$
36,138,561

 
3.1
 %
 
$
25,577,116

 
42.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) On 1/1/19 $9.29 B of loans (at fair value) were acquired from FCB. The amounts presented in these columns are net of paydowns and payoffs since acquisition date.
(2) Percentage change is annualized.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NON-PERFORMING LOANS COMPOSITION (1)
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
Total
Non-performing Loans
 
Total Originated Non-performing Loans
 
Total Acquired Non-performing Loans (2)
 
Total
Non-performing Loans (3)
 
Linked Quarter
 
Total
Non-performing Loans
 
Year/Year
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan Type
 
September 30, 2019
 
September 30, 2019
 
September 30, 2019
 
June 30, 2019
 
% Change
 
September 30, 2018
 
% Change
Commercial, Financial, and Agricultural
 
$
73,672

 
$
64,912

 
$
8,760

 
$
72,934

 
1.0
 %
 
$
69,010

 
6.8
 %
Owner-Occupied
 
9,222

 
9,222

 

 
13,465

 
(31.5
)
 
5,708

 
61.6

Total Commercial & Industrial
 
82,894

 
74,134


8,760

 
86,399

 
(4.1
)
 
74,718

 
10.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Multi-Family
 

 

 

 

 
-

 
234

 
nm

Hotels
 

 

 

 

 
-

 

 
-

Office Buildings
 
290

 
238

 
52

 
300

 
(3.3
)
 
166

 
74.7

Shopping Centers
 
140

 
140

 

 
671

 
(79.1
)
 
89

 
57.3

Warehouses
 

 

 

 

 
-

 

 
-

Other Investment Property
 

 

 

 
7

 
nm

 
1,666

 
nm

Total Investment Properties
 
430

 
378


52

 
978

 
(56.0
)
 
2,155

 
(80.0
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1-4 Family Construction
 
698

 
698

 

 
208

 
235.6

 

 
nm

1-4 Family Investment Mortgage
 
1,520

 
1,520

 

 
1,637

 
(7.1
)
 
3,139

 
(51.6
)
Total 1-4 Family Properties
 
2,218


2,218

 

 
1,845

 
20.2

 
3,139

 
(29.3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial Development
 
87

 
87

 

 

 
-

 
42

 
107.1

Residential Development
 
1,526

 
1,526

 

 
1,253

 
21.8

 
3,184

 
(52.1
)
Land Acquisition
 
1,419

 
1,419

 

 
1,482

 
(4.3
)
 
1,603

 
(11.5
)
Land and Development
 
3,032

 
3,032



 
2,735

 
10.9

 
4,829

 
(37.2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Commercial Real Estate
 
5,680

 
5,628


52

 
5,558

 
2.2

 
10,123

 
(43.9
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Mortgages
 
10,015

 
10,015

 

 
13,628

 
(26.5
)
 
5,313

 
88.5

Home Equity Lines
 
12,590

 
12,590

 

 
13,830

 
(9.0
)
 
14,498

 
(13.2
)
Other Consumer Loans
 
4,736

 
4,736

 

 
4,668

 
1.5

 
3,773

 
25.5

Total Consumer
 
27,341

 
27,341



 
32,126

 
(14.9
)
 
23,584

 
15.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
115,915

 
$
107,103


$
8,812

 
$
124,083

 
(6.6
)%
 
$
108,425

 
6.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) For purposes of this table, 2019 non-performing loans exclude acquired loans accounted for under ASC 310-30 that are currently accruing income.
(2) Represents loans acquired from FCB and designated as non-accrual, net of payments and dispositions since acquisition date
(3) June 30, 2019 total non-performing loans included $7.0 million of acquired non-performing loans, net of payments and dispositions since acquisition date.





Synovus
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT QUALITY DATA
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
2019
 
2018
 
Third Quarter
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Third
 
Second
 
First
 
Fourth
 
Third
 
'19 vs '18
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
% Change
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-performing Loans (1)
 
$
115,915

 
124,083

 
143,976

 
106,733

 
108,425

 
6.9
%
 
Other Real Estate and Other Assets
 
35,400

 
15,479

 
11,341

 
7,726

 
8,554

 
313.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-performing Assets (1)
 
151,315

 
139,562

 
155,317

 
114,459

 
116,979

 
29.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for Loan Losses
 
265,013

 
257,376

 
257,036

 
250,555

 
251,450

 
5.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Charge-Offs - Quarter
 
19,924

 
11,778

 
17,088

 
13,044

 
15,257

 
 
 
Net Charge-Offs - YTD
 
48,791

 
28,867

 
17,088

 
50,410

 
37,366

 
 
 
Net Charge-Offs / Average Loans - Quarter (2)
 
0.22
%
 
0.13

 
0.19

 
0.20

 
0.24

 
 
 
Net Charge-Offs / Average Loans - YTD (2)
 
0.18

 
0.16

 
0.19

 
0.20

 
0.20

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-performing Loans / Loans (1)
 
0.32

 
0.34

 
0.40

 
0.41

 
0.42

 
 
 
Non-performing Assets / Loans, ORE and specific other assets (1)
 
0.42

 
0.39

 
0.44

 
0.44

 
0.46

 
 
 
Allowance / Loans
 
0.73

 
0.71

 
0.72

 
0.97

 
0.98

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance / Non-performing Loans (1)
 
228.63

 
207.42

 
178.53

 
234.75

 
231.91

 
 
 
Allowance / Non-performing Loans excluding impaired and acquired loans with no reserve (1)
 
363.63

 
282.51

 
291.62

 
297.68

 
288.21

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Past Due Loans over 90 days and Still Accruing (1)
 
$
15,660

 
5,851

 
4,486

 
3,798

 
4,856

 
222.5

 
As a Percentage of Loans Outstanding
 
0.04
%
 
0.02

 
0.01

 
0.01

 
0.02

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Past Due Loans and Still Accruing (1)
 
$
88,219

 
80,792

 
88,135

 
56,927

 
78,323

 
12.6

 
As a Percentage of Loans Outstanding
 
0.24
%
 
0.22

 
0.25

 
0.22

 
0.31

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accruing Troubled Debt Restructurings (TDRs)
 
$
130,019

 
126,369

 
112,205

 
115,588

 
114,740

 
13.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) For purposes of this table, 2019 non-performing loans exclude acquired loans accounted for under ASC 310-30 that are currently accruing income.
 
(2) Ratio is annualized.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELECTED CAPITAL INFORMATION (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2019
 
December 31, 2018
 
September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tier 1 Capital
 
$
4,196,628

 
3,090,416

 
3,038,768

 
 
 
 
 
 
 
Total Risk-Based Capital
 
5,023,138

 
3,601,376

 
3,550,686

 
 
 
 
 
 
 
Common Equity Tier 1 Capital Ratio
 
8.96
%
 
9.95

 
9.90

 
 
 
 
 
 
 
Common Equity Tier 1 Ratio (fully phased-in) (5)
 
8.95

 
9.92

 
9.86

 
 
 
 
 
 
 
Tier 1 Capital Ratio
 
10.27

 
10.61

 
10.57

 
 
 
 
 
 
 
Total Risk-Based Capital Ratio
 
12.30

 
12.37

 
12.36

 
 
 
 
 
 
 
Tier 1 Leverage Ratio
 
9.02

 
9.60

 
9.58

 
 
 
 
 
 
 
Common Equity as a Percentage of Total Assets (2)
 
9.09

 
8.99

 
8.87

 
 
 
 
 
 
 
Tangible Common Equity Ratio (3) (5)
 
8.04

 
8.81

 
8.68

 
 
 
 
 
 
 
Book Value Per Common Share (4)
 
$
29.35

 
25.36

 
24.38

 
 
 
 
 
 
 
Tangible Book Value Per Common Share (3)
 
25.65

 
24.78

 
23.80

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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) See "Non-GAAP Financial Measures" of this report for applicable reconciliation.