Synovus announces earnings for the first quarter 2022
April 21, 2022
Diluted Earnings per Share of $1.11 vs. $1.19 in 1Q21
Adjusted Diluted Earnings per Share of $1.08 vs. $1.21 in 1Q21
Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended March 31, 2022. “Performance during the first quarter reflects strong execution against our profitable growth objectives, evidenced by 11 percent annualized loan growth and adjusted pre-provision net revenue of $213 million, up 9% year-over-year,” said Synovus President and CEO Kevin Blair. “In a rapidly changing landscape that presented new challenges, our team excelled, enabling an increase in our financial expectations for 2022. Leveraging the strength of our core franchise while leaning into our solid, transformational growth plan, we will enhance performance throughout the year while proactively pursuing new and expanded sources of revenue. I remain confident in the strength and capabilities of our team and our ability to achieve sustainable top quartile performance.”
First Quarter 2022 Highlights
- Net income available to common shareholders of $162.7 million, or $1.11 per diluted share, down $0.20 sequentially and down $0.08 compared to prior year.
- Adjusted diluted EPS of $1.08, down $0.27 sequentially and down $0.13 compared to prior year. Year-over-year decline was primarily due to increased provision for credit losses.
- Period-end loans increased $857.2 million sequentially, and $1.05 billion, or 11.0% annualized, excluding Paycheck Protection program (PPP) loans.
- Core transaction deposits (non-interest bearing, NOW/savings, and money market deposits excluding public and brokered funds) increased $405.0 million sequentially, or 4% annualized, largely due to growth in non-interest bearing and savings deposits.
- Total deposit costs of 0.11% down 1 bp sequentially primarily due to mix optimization.
- Pre-provision net revenue of $225.1 million increased $7.5 million, or 3%, compared to prior year.
- Adjusted pre-provision net revenue of $213.4 million increased $17.3 million, or 9%, compared to prior year driven primarily by growth in net interest income excluding PPP fees of over $36 million, or 10%.
First Quarter Summary
|
|
Reported |
|
Adjusted |
|||||||||||||||||||||
|
(dollars in thousands) |
1Q22 |
|
4Q21 |
|
1Q21 |
|
1Q22 |
|
4Q21 |
|
1Q21 |
|||||||||||||
|
Net income available to common shareholders |
$ |
162,746 |
|
$ |
192,110 |
|
$ |
178,802 |
|
$ |
158,368 |
|
$ |
198,373 |
|
$ |
180,685 |
|
||||||
|
Diluted earnings per share |
|
1.11 |
|
|
1.31 |
|
|
1.19 |
|
|
1.08 |
|
|
1.35 |
|
|
1.21 |
|
||||||
|
Total loans |
|
40,169,150 |
|
|
39,311,958 |
|
|
38,805,101 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
||||||
|
Total deposits |
|
48,656,244 |
|
|
49,427,276 |
|
|
47,368,951 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
||||||
|
Total TE(1) revenue |
|
498,447 |
|
|
510,265 |
|
|
485,587 |
|
|
499,742 |
|
|
509,040 |
|
|
486,785 |
|
||||||
|
Return on avg assets |
|
1.22 |
% |
|
1.40 |
% |
|
1.40 |
% |
|
1.19 |
% |
|
1.44 |
% |
|
1.41 |
% |
||||||
|
Return on avg common equity |
|
14.20 |
|
|
16.11 |
|
|
15.77 |
|
|
13.82 |
|
|
16.64 |
|
|
15.93 |
|
||||||
|
Return on avg tangible common equity |
|
16.02 |
|
|
18.14 |
|
|
17.85 |
|
|
15.59 |
|
|
18.72 |
|
|
18.04 |
|
||||||
|
Net interest margin |
|
3.00 |
|
|
2.96 |
|
|
3.04 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
||||||
|
Efficiency ratio-TE(1) |
|
54.66 |
|
|
57.85 |
|
|
55.01 |
|
|
55.50 |
|
|
55.64 |
|
|
54.12 |
|
||||||
|
NCO ratio-QTD |
|
0.19 |
|
|
0.11 |
|
|
0.21 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
||||||
|
NPA ratio |
|
0.40 |
|
|
0.40 |
|
|
0.50 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
||||||
|
(1) Taxable equivalent |
||||||||||||||||||||||||
Balance Sheet
|
Loans* |
||||||||||||||||||||||
|
(dollars in millions) |
1Q22 |
|
4Q21 |
|
Linked |
|
Linked |
|
1Q21 |
|
Year/Year |
|
Year/Year |
|||||||||
|
Commercial & industrial |
$ |
20,352.3 |
$ |
19,622.9 |
$ |
729.4 |
|
4 |
% |
$ |
19,779.6 |
$ |
572.7 |
3 |
% |
|||||||
|
Commercial real estate |
|
11,145.3 |
|
11,015.1 |
|
130.2 |
|
1 |
|
|
10,533.9 |
|
611.4 |
6 |
|
|||||||
|
Consumer |
|
8,671.5 |
|
8,673.9 |
|
(2.4 |
) |
— |
|
|
8,491.6 |
|
179.9 |
2 |
|
|||||||
|
Total loans |
$ |
40,169.2 |
$ |
39,312.0 |
$ |
857.2 |
|
2 |
% |
$ |
38,805.1 |
$ |
1,364.0 |
4 |
% |
|||||||
|
*Amounts may not total due to rounding |
||||||||||||||||||||||
- Total loans ended the quarter at $40.17 billion, up $857.2 million sequentially, and $1.05 billion, or 11.0% annualized, excluding PPP loans.
- Commercial and industrial (C&I) loans increased $729.4 million sequentially, led by broad based growth within our Wholesale Banking segment, partially offset by declines in PPP loan balances of $196.7 million.
- CRE loans increased $130.2 million, with payoff activity down from elevated levels seen in the second half of 2021.
- Consumer loans decreased $2.4 million sequentially.
|
Deposits* |
