Synovus Financial 8K Synovus Announces Earnings for the First Quarter 2022 | SNV 21 Apr 22


Synovus								Exhibit 99.2

	INCOME STATEMENT DATA
	(Unaudited)

	(Dollars in thousands, except per share data)	2022			2021				First Quarter

		First Quarter			Fourth Quarter	Third Quarter	Second Quarter	First Quarter	'22 vs '21
									% Change

	Interest income	$	416,062		418,279	412,504	412,743	409,817	2	%
	Interest expense	23,814			25,966	27,587	30,883	35,960	(34)

	Net interest income	392,248			392,313	384,917	381,860	373,857	5
	Provision for (reversal of) credit losses	11,400			(55,210)	(7,868)	(24,598)	(18,575)	nm

	Net interest income after provision for credit losses	380,848			447,523	392,785	406,458	392,432	(3)

	Non-interest revenue:
	Service charges on deposit accounts	22,539			22,221	22,641	21,414	20,033	13
	Fiduciary and asset management fees	20,277			20,602	19,786	18,805	17,954	13
	Card fees	14,756			12,861	13,238	13,304	11,996	23
	Brokerage revenue	14,655			14,795	14,745	13,926	12,974	13
	Mortgage banking income	5,953			7,059	11,155	13,842	22,315	(73)
	Capital markets income	5,472			7,188	8,089	3,335	7,505	(27)
	Income from bank-owned life insurance	6,556			15,168	6,820	7,188	8,843	(26)
	Investment securities gains (losses), net	—			230	962	—	(1,990)	nm
	Other non-interest revenue	15,126			16,944	17,519	15,273	11,326	34

	Total non-interest revenue	105,334			117,068	114,955	107,087	110,956	(5)

	Non-interest expense:
	Salaries and other personnel expense	164,684			167,018	160,364	160,567	161,477	2
	Net occupancy, equipment, and software expense	42,877			42,780	43,483	41,825	41,134	4
	Third-party processing and other services	20,996			22,791	19,446	24,419	20,032	5
	Professional fees	8,474			9,014	6,739	7,947	9,084	(7)
	FDIC insurance and other regulatory fees	6,250			6,016	5,212	5,547	5,579	12
	Restructuring charges	(6,424)			5,958	319	415	531	nm
	Other operating expenses	35,593			41,630	31,469	29,811	29,297	21

	Total non-interest expense	272,450			295,207	267,032	270,531	267,134	2

	Income before income taxes	213,732			269,384	240,708	243,014	236,254	(10)
	Income tax expense	42,695			68,983	53,935	56,814	49,161	(13)

	Net income	171,037			200,401	186,773	186,200	187,093	(9)

	Less: Preferred stock dividends	8,291			8,291	8,291	8,291	8,291	—

	Net income available to common shareholders	$	162,746		192,110	178,482	177,909	178,802	(9)	%

	Net income per common share, basic	$	1.12		1.32	1.22	1.20	1.20	(7)	%

	Net income per common share, diluted	1.11			1.31	1.21	1.19	1.19	(7)

	Cash dividends declared per common share	0.34			0.33	0.33	0.33	0.33	3

	Return on average assets *	1.22		%	1.40	1.34	1.36	1.40	(18)	bps
	Return on average common equity *	14.20			16.11	14.96	15.40	15.77	(157)

	Weighted average common shares outstanding, basic	145,273			145,316	146,308	148,113	148,467	(2)	%
	Weighted average common shares outstanding, diluted	146,665			146,793	147,701	149,747	149,780	(2)

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


Synovus


	BALANCE SHEET DATA	March 31, 2022		December 31, 2021		March 31, 2021

	(Unaudited)

	(In thousands, except share data)

	ASSETS
	Cash and due from banks	$	557,178	$	432,925	$	493,645
	Interest-bearing funds with Federal Reserve Bank	941,272		2,479,006		2,722,100
	Interest earning deposits with banks	27,411		25,535		23,969
	Federal funds sold and securities purchased under resale agreements	27,642		72,387		88,552
	Cash, cash equivalents, and restricted cash	1,553,503		3,009,853		3,328,266

	Investment securities available for sale, at fair value	10,463,101		10,918,329		8,825,757
	Loans held for sale ($111,992, $108,198, and $242,010 measured at fair value, respectively)	723,921		750,642		993,887

	Loans, net of deferred fees and costs	40,169,150		39,311,958		38,805,101
	Allowance for loan losses	(414,956)		(427,597)		(563,214)
	Loans, net	39,754,194		38,884,361		38,241,887

	Cash surrender value of bank-owned life insurance	1,075,175		1,068,616		1,054,475
	Premises, equipment, and software, net	386,631		407,241		454,911
	Goodwill	452,390		452,390		452,390
	Other intangible assets, net	33,478		35,596		42,733
	Other assets	1,977,156		1,790,198		1,764,705
	Total assets	$	56,419,549	$	57,317,226	$	55,159,011

	LIABILITIES AND SHAREHOLDERS' EQUITY
	Liabilities:
	Deposits:
	Non-interest-bearing deposits	$	16,611,344	$	16,392,653	$	14,660,287
	Interest-bearing deposits	32,044,900		33,034,623		32,708,664

	Total deposits	48,656,244		49,427,276		47,368,951

	Federal funds purchased and securities sold under repurchase agreements	501,124		264,133		293,659
	Long-term debt	805,259		1,204,229		1,202,825
	Other liabilities	1,632,287		1,124,788		1,131,859
	Total liabilities	51,594,914		52,020,426		49,997,294

	Shareholders' equity:
	Preferred stock - no par value. Authorized 100,000,000 shares; issued 22,000,000	537,145		537,145		537,145
	Common stock - $1.00 par value. Authorized 342,857,143 shares; issued 169,912,021, 169,383,758, and 168,978,380; outstanding 145,334,763, 145,010,086, and 148,888,513	169,912		169,384		168,978
	Additional paid-in capital	3,899,269		3,894,109		3,864,281
	Treasury stock, at cost – 24,577,258, 24,373,672, and 20,089,867 shares	(941,168)		(931,497)		(731,690)
	Accumulated other comprehensive income (loss), net	(662,065)		(82,321)		15,278
	Retained earnings	1,821,542		1,709,980		1,307,725
	Total shareholders’ equity	4,824,635		5,296,800		5,161,717
	Total liabilities and shareholders' equity	$	56,419,549	$	57,317,226	$	55,159,011


Synovus
AVERAGE BALANCES, INTEREST, AND YIELDS/RATES
(Unaudited)
	First Quarter 2022						Fourth Quarter 2021						First Quarter 2021
(dollars in thousands)	Average Balance		Interest		Yield/ Rate		Average Balance		Interest		Yield/ Rate		Average Balance		Interest		Yield/ Rate
Assets
Interest earning assets:
Commercial loans (1) (2) (3)	$	30,756,752	$	280,588	3.70	%	$	29,685,876	$	286,513	3.83	%	$	29,924,651	$	291,200	3.95	%
Consumer loans (1) (2)	8,594,009		81,368		3.81		8,679,721		83,836		3.89		8,287,616		82,065		3.83
Less: Allowance for loan losses	(423,953)		—		—		(474,972)		—		—		(599,872)		—		—
Loans, net	38,926,808		361,956		3.76		37,890,625		370,349		3.88		37,612,395		373,265		4.02
Investment securities available for sale	11,259,800		47,250		1.68		10,884,571		41,447		1.52		8,437,563		29,458		1.40
Trading account assets	9,078		39		1.73		11,280		42		1.50		3,063		22		2.81
Other earning assets(4)	1,919,531		815		0.17		3,186,271		1,208		0.15		2,838,063		716		0.10
FHLB and Federal Reserve Bank stock	160,065		685		1.71		159,933		919		2.30		157,657		668		1.69
Mortgage loans held for sale	103,887		882		3.40		130,786		1,009		3.09		246,962		1,657		2.68
Other loans held for sale	597,062		5,300		3.55		518,992		4,189		3.16		660,753		4,805		2.91
Total interest earning assets	52,976,231		$	416,927	3.18	%	52,782,458		$	419,163	3.16	%	49,956,456		$	410,591	3.32	%
Cash and due from banks	548,684						541,788						518,738
Premises and equipment	398,774						421,577						460,466
Other real estate	11,759						1,351						1,823
Cash surrender value of bank-owned life insurance	1,070,886						1,067,004						1,051,520
Other assets(5)	1,849,564						2,097,751						2,199,501
Total assets	$	56,855,898					$	56,911,929					$	54,188,504
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits	$	9,549,527	$	2,372	0.10	%	$	9,165,054	$	2,238	0.10	%	$	8,570,753	$	2,973	0.14	%
Money market accounts	16,045,627		5,349		0.14		15,998,203		5,562		0.14		15,348,916		8,730		0.23
Savings deposits	1,460,648		67		0.02		1,408,858		65		0.02		1,219,288		49		0.02
Time deposits	3,009,795		2,138		0.29		3,163,062		2,599		0.33		4,155,302		7,042		0.69
Brokered deposits	2,788,124		3,733		0.54		2,836,841		3,980		0.56		3,369,333		6,224		0.75
Federal funds purchased and securities sold under repurchase agreements	194,352		11		0.02		227,664		24		0.04		209,448		34		0.07
Other short-term borrowings	4,653		—		—		—		—		—		—		—		—
Long-term debt	982,423		10,144		4.13		1,203,959		11,498		3.82		1,202,613		10,908		3.63
Total interest-bearing liabilities	34,035,149		$	23,814	0.28	%	34,003,641		$	25,966	0.30	%	34,075,653		$	35,960	0.42	%
Non-interest-bearing demand deposits	16,491,643						16,545,203						13,791,286
Other liabilities	1,144,535						1,095,112						1,185,344
Shareholders' equity	5,184,571						5,267,973						5,136,221
Total liabilities and shareholders' equity	$	56,855,898					$	56,911,929					$	54,188,504
Net interest income and net interest margin, taxable equivalent (6)			$	393,113	3.00	%			$	393,197	2.96	%			$	374,631	3.04	%
Less: taxable-equivalent adjustment			865						884						774
Net interest income			$	392,248					$	392,313					$	373,857

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

(2)Interest income includes net loan fees as follows: First Quarter 2022 — $20.7 million, Fourth Quarter 2021 — $24.7 million, and First Quarter 2021 — $31.9 million.

(3)Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans and investment securities to a taxable-equivalent basis.

(4)Includes interest-bearing funds with Federal Reserve Bank, interest earning deposits with banks, and federal funds sold and securities purchased under resale agreements.

(5)Includes average net unrealized gains/(losses) on investment securities available for sale of $(247.4) million, $(34.2) million, and $116.1 million for the First Quarter 2022, Fourth Quarter 2021, and First Quarter 2021, respectively.

(6)The net interest margin is calculated by dividing annualized net interest income-taxable equivalent by average total interest earning assets.


Synovus
LOANS OUTSTANDING BY TYPE
(Unaudited)	Total Loans		Total Loans		Linked Quarter		Total Loans		Year/Year
(Dollars in thousands)

Loan Type	March 31, 2022		December 31, 2021		% Change		March 31, 2021		% Change
Commercial, Financial, and Agricultural	$	12,659,611	$	12,147,858	4	%	$	12,748,106	(1)	%
Owner-Occupied	7,692,714		7,475,066		3		7,031,505		9
Total Commercial & Industrial	20,352,325		19,622,924		4		19,779,611		3
Multi-Family	2,288,497		2,129,424		7		2,220,939		3
Hotels	1,593,983		1,537,060		4		1,462,370		9
Office Buildings	2,521,381		2,511,058		—		2,280,053		11
Shopping Centers	1,500,768		1,655,465		(9)		1,627,933		(8)
Warehouses	814,756		801,639		2		692,267		18
Other Investment Property	1,327,760		1,268,130		5		1,052,163		26
Total Investment Properties	10,047,145		9,902,776		1		9,335,725		8
1-4 Family Construction	229,038		206,881		11		189,626		21
1-4 Family Investment Mortgage	391,636		438,588		(11)		449,328		(13)
Total 1-4 Family Properties	620,674		645,469		(4)		638,954		(3)
Commercial Development	102,757		102,790		—		142,380		(28)
Residential Development	193,580		171,820		13		196,653		(2)
Land Acquisition	181,162		192,256		(6)		220,216		(18)
Land and Development	477,499		466,866		2		559,249		(15)
Total Commercial Real Estate	11,145,318		11,015,111		1		10,533,928		6
Consumer Mortgages	5,052,003		5,068,998		—		5,299,130		(5)
Home Equity	1,416,341		1,361,419		4		1,460,866		(3)
Credit Cards	188,247		204,172		(8)		181,594		4
Other Consumer Loans	2,014,916		2,039,334		(1)		1,549,972		30
Total Consumer	8,671,507		8,673,923		—		8,491,562		2
Total	$	40,169,150	$	39,311,958	2	%	$	38,805,101	4	%

NON-PERFORMING LOANS COMPOSITION
(Unaudited)	Total Non-performing Loans		Total Non-performing Loans		Linked Quarter		Total Non-performing Loans		Year/Year
(Dollars in thousands)

Loan Type	March 31, 2022		December 31, 2021		% Change		March 31, 2021		% Change
Commercial, Financial, and Agricultural	$	64,888	$	61,787	5	%	$	76,460	(15)	%
Owner-Occupied	10,854		11,196		(3)		17,192		(37)
Total Commercial & Industrial	75,742		72,983		4		93,652		(19)
Multi-Family	2,639		2,380		11		2,698		(2)
Office Buildings	2,205		1,615		37		1,645		34
Shopping Centers	915		915		—		20,138		(95)
Warehouses	482		223		116		221		118
Other Investment Property	1,047		717		46		887		18
Total Investment Properties	7,288		5,850		25		25,589		(72)
1-4 Family Construction	55		55		—		1,291		(96)
1-4 Family Investment Mortgage	2,187		4,508		(51)		2,760		(21)
Total 1-4 Family Properties	2,242		4,563		(51)		4,051		(45)
Commercial Development	625		449		39		567		10
Residential Development	407		446		(9)		452		(10)
Land Acquisition	1,021		1,023		—		782		31
Land and Development	2,053		1,918		7		1,801		14
Total Commercial Real Estate	11,583		12,331		(6)		31,441		(63)
Consumer Mortgages	29,997		29,078		3		11,201		168
Home Equity	8,854		9,773		(9)		12,207		(27)
Other Consumer Loans	5,955		6,877		(13)		6,668		(11)
Total Consumer	44,806		45,728		(2)		30,076		49
Total	$	132,131	$	131,042	1	%	$	155,169	(15)	%


Synovus

	CREDIT QUALITY DATA
	(Unaudited)
	(Dollars in thousands)	2022			2021				First Quarter

		First			Fourth	Third	Second	First	'22 vs '21
		Quarter			Quarter	Quarter	Quarter	Quarter	% Change

	Non-performing Loans (NPLs)	$	132,131		131,042	155,465	161,028	155,169	(15)	%
	Impaired Loans Held for Sale	—			—	—	—	23,590	nm
	Other Real Estate and Other Assets	26,759			27,137	16,883	16,806	16,849	59

	Non-performing Assets (NPAs)	158,890			158,179	172,348	177,834	195,608	(19)

	Allowance for Loan Losses (ALL)	414,956			427,597	492,243	516,708	563,214	(26)
	Reserve for Unfunded Commitments	47,317			41,885	42,971	46,890	51,528	(8)

	Allowance for Credit Losses (ACL)	462,273			469,482	535,214	563,598	614,742	(25)

	Net Charge-Offs - Quarter	18,609			10,522	20,516	26,547	20,204
	Net Charge-Offs - YTD	18,609			77,788	67,266	46,750	20,204
	Net Charge-Offs / Average Loans - Quarter (1)	0.19		%	0.11	0.22	0.28	0.21
	Net Charge-Offs / Average Loans - YTD (1)	0.19			0.20	0.24	0.24	0.21
	NPLs / Loans	0.33			0.33	0.41	0.42	0.40
	NPAs / Loans, ORE and specific other assets	0.40			0.40	0.45	0.46	0.50
	ACL/Loans	1.15			1.19	1.40	1.47	1.58
	ALL/Loans	1.03			1.09	1.28	1.35	1.45

	ACL/NPLs	349.86			358.27	344.27	350.00	396.18
	ALL/NPLs	314.05			326.31	316.63	320.88	362.97

	Past Due Loans over 90 days and Still Accruing	$	3,067		6,770	5,960	4,415	3,804	(19)
	As a Percentage of Loans Outstanding	0.01		%	0.02	0.02	0.01	0.01

	Total Past Due Loans and Still Accruing	$	45,385		57,565	60,817	49,321	45,693	(1)
	As a Percentage of Loans Outstanding	0.11		%	0.15	0.16	0.13	0.12

	Accruing Troubled Debt Restructurings (TDRs)	$	145,957		119,804	126,055	124,528	129,776	12

	(1) Ratio is annualized.




	SELECTED CAPITAL INFORMATION (1)
	(Unaudited)
	(Dollars in thousands)
		March 31, 2022			December 31, 2021	March 31, 2021


	Common Equity Tier 1 Capital Ratio	9.47		%	9.50	9.74
	Tier 1 Capital Ratio	10.60			10.66	10.99
	Total Risk-Based Capital Ratio	12.53			12.61	13.34
	Tier 1 Leverage Ratio	8.87			8.72	8.80
	Common Equity as a Percentage of Total Assets (2)	7.60			8.30	8.38
	Tangible Common Equity Ratio (3) (5)	6.80			7.52	7.55
	Book Value Per Common Share (4)	$	29.50		32.82	31.06
	Tangible Book Value Per Common Share (3)	26.16			29.46	27.74

	(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.

Synovus Financial (SNV) 8-KSynovus Announces Earnings for the First Quarter 2022