Synovus Financial 8K Synovus Announces Earnings for the Second Quarter 2022 | SNV 21 Jul 22


Synovus				Exhibit 99.2

INCOME STATEMENT DATA
(Unaudited)

(Dollars in thousands, except per share data)	Six Months Ended June 30,

	2022			2021			22 vs '21
							% Change

Interest income	$	869,834		$	822,560		6	%
Interest expense	52,199			66,844			(22)

Net interest income	817,635			755,716			8
Provision for (reversal of) credit losses	24,088			(43,173)			nm

Net interest income after provision for credit losses	793,547			798,889			(1)

Non-interest revenue:
Service charges on deposit accounts	46,030			41,448			11
Fiduciary and asset management fees	40,377			36,759			10
Card fees	30,846			25,300			22
Brokerage revenue	29,898			26,899			11
Mortgage banking income	9,857			36,157			(73)
Capital markets income	12,864			10,840			19
Income from bank-owned life insurance	15,722			16,031			(2)
Investment securities gains (losses), net	—			(1,990)			nm
Other non-interest revenue	17,006			26,599			(36)

Total non-interest revenue	202,600			218,043			(7)

Non-interest expense:
Salaries and other personnel expense	325,747			322,044			1
Net occupancy, equipment, and software expense	86,076			82,959			4
Third-party processing and other services	42,947			44,451			(3)
Professional fees	19,338			17,031			14
FDIC insurance and other regulatory fees	13,144			11,127			18
Restructuring charges	(8,274)			946			nm
Other operating expenses	75,523			59,107			28

Total non-interest expense	554,501			537,665			3

Income before income taxes	441,646			479,267			(8)
Income tax expense	92,558			105,975			(13)

Net income	349,088			373,292			(6)

Less: Preferred stock dividends	16,581			16,581			—

Net income available to common shareholders	$	332,507		$	356,711		(7)	%

Net income per common share, basic	$	2.29		$	2.41		(5)	%

Net income per common share, diluted	2.27			2.38			(5)

Cash dividends declared per common share	0.68			0.66			3

Return on average assets *	1.24		%	1.38		%	(14)	bps
Return on average common equity *	15.28			15.58			(30)

Weighted average common shares outstanding, basic	145,301			148,289			(2)	%
Weighted average common shares outstanding, diluted	146,489			149,764			(2)

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


Synovus

	INCOME STATEMENT DATA
	(Unaudited)

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

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

	Interest income	$	453,772		416,062	418,279	412,504	412,743	10	%
	Interest expense	28,384			23,814	25,966	27,587	30,883	(8)

	Net interest income	425,388			392,248	392,313	384,917	381,860	11
	Provision for (reversal of) credit losses	12,688			11,400	(55,210)	(7,868)	(24,598)	nm

	Net interest income after provision for credit losses	412,700			380,848	447,523	392,785	406,458	2

	Non-interest revenue:
	Service charges on deposit accounts	23,491			22,539	22,221	22,641	21,414	10
	Fiduciary and asset management fees	20,100			20,277	20,602	19,786	18,805	7
	Card fees	16,089			14,756	12,861	13,238	13,304	21
	Brokerage revenue	15,243			14,655	14,795	14,745	13,926	9
	Mortgage banking income	3,904			5,953	7,059	11,155	13,842	(72)
	Capital markets income	7,393			5,472	7,188	8,089	3,335	122
	Income from bank-owned life insurance	9,165			6,556	15,168	6,820	7,188	28
	Investment securities gains (losses), net	—			—	230	962	—	nm
	Other non-interest revenue	1,881			15,126	16,944	17,519	15,273	(88)

	Total non-interest revenue	97,266			105,334	117,068	114,955	107,087	(9)

	Non-interest expense:
	Salaries and other personnel expense	161,063			164,684	167,018	160,364	160,567	—
	Net occupancy, equipment, and software expense	43,199			42,877	42,780	43,483	41,825	3
	Third-party processing and other services	21,952			20,996	22,791	19,446	24,419	(10)
	Professional fees	10,865			8,474	9,014	6,739	7,947	37
	FDIC insurance and other regulatory fees	6,894			6,250	6,016	5,212	5,547	24
	Restructuring charges	(1,850)			(6,424)	5,958	319	415	nm
	Other operating expenses	39,928			35,593	41,630	31,469	29,811	34

	Total non-interest expense	282,051			272,450	295,207	267,032	270,531	4

	Income before income taxes	227,915			213,732	269,384	240,708	243,014	(6)
	Income tax expense	49,863			42,695	68,983	53,935	56,814	(12)

	Net income	178,052			171,037	200,401	186,773	186,200	(4)

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

	Net income available to common shareholders	$	169,761		162,746	192,110	178,482	177,909	(5)	%

	Net income per common share, basic	$	1.17		1.12	1.32	1.22	1.20	(3)	%

	Net income per common share, diluted	1.16			1.11	1.31	1.21	1.19	(3)

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

	Return on average assets *	1.26		%	1.22	1.40	1.34	1.36	(10)	bps
	Return on average common equity *	16.48			14.20	16.11	14.96	15.40	108

	Weighted average common shares outstanding, basic	145,328			145,273	145,316	146,308	148,113	(2)	%
	Weighted average common shares outstanding, diluted	146,315			146,665	146,793	147,701	149,747	(2)

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


Synovus


	BALANCE SHEET DATA	June 30, 2022		December 31, 2021		June 30, 2021

	(Unaudited)

	(In thousands, except share data)

	ASSETS
	Cash and due from banks	$	583,323	$	432,925	$	560,396
	Interest-bearing funds with Federal Reserve Bank	1,023,030		2,479,006		2,598,213
	Interest earning deposits with banks	29,139		25,535		21,513
	Federal funds sold and securities purchased under resale agreements	29,568		72,387		82,554
	Cash, cash equivalents, and restricted cash	1,665,060		3,009,853		3,262,676

	Investment securities available for sale, at fair value	9,889,850		10,918,329		9,442,170
	Loans held for sale ($76,864, $108,198, and $202,216 measured at fair value, respectively)	917,679		750,642		750,916

	Loans, net of deferred fees and costs	41,204,780		39,311,958		38,236,018
	Allowance for loan losses	(407,837)		(427,597)		(516,708)
	Loans, net	40,796,943		38,884,361		37,719,310

	Cash surrender value of bank-owned life insurance	1,078,703		1,068,616		1,059,235
	Premises, equipment, and software, net	383,060		407,241		446,447
	Goodwill	452,390		452,390		452,390
	Other intangible assets, net	31,360		35,596		40,354
	Other assets	2,167,700		1,790,198		1,765,161
	Total assets	$	57,382,745	$	57,317,226	$	54,938,659

	LIABILITIES AND SHAREHOLDERS' EQUITY
	Liabilities:
	Deposits:
	Non-interest-bearing deposits	$	16,876,710	$	16,392,653	$	15,345,629
	Interest-bearing deposits	32,157,990		33,034,623		31,826,333

	Total deposits	49,034,700		49,427,276		47,171,962

	Federal funds purchased and securities sold under repurchase agreements	345,242		264,133		194,786
	Long-term debt	1,804,104		1,204,229		1,203,293
	Other liabilities	1,614,261		1,124,788		1,130,904
	Total liabilities	52,798,307		52,020,426		49,700,945

	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 170,012,527, 169,383,758, and 169,107,609; outstanding 145,357,669, 145,010,086, and 147,071,532	170,013		169,384		169,108
	Additional paid-in capital	3,908,118		3,894,109		3,872,949
	Treasury stock, at cost – 24,654,858, 24,373,672, and 22,036,077 shares	(944,484)		(931,497)		(824,197)
	Accumulated other comprehensive income (loss), net	(1,026,705)		(82,321)		45,726
	Retained earnings	1,940,351		1,709,980		1,436,983
	Total shareholders’ equity	4,584,438		5,296,800		5,237,714
	Total liabilities and shareholders' equity	$	57,382,745	$	57,317,226	$	54,938,659


Synovus
AVERAGE BALANCES, INTEREST, AND YIELDS/RATES
(Unaudited)
	Second Quarter 2022						First Quarter 2022						Second 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)	$	31,870,387	$	308,442	3.88	%	$	30,756,752	$	280,588	3.70	%	$	29,936,751	$	287,677	3.85	%
Consumer loans (1) (2)	8,720,488		83,826		3.86		8,594,009		81,368		3.81		8,559,726		84,402		3.94
Less: Allowance for loan losses	(415,372)		—		—		(423,953)		—		—		(561,242)		—		—
Loans, net	40,175,503		392,268		3.92		38,926,808		361,956		3.76		37,935,235		372,079		3.93
Investment securities available for sale	11,153,091		50,312		1.81		11,259,800		47,250		1.68		9,184,691		33,298		1.45
Trading account assets	11,987		73		2.44		9,078		39		1.73		2,831		8		1.15
Other earning assets(4)	813,028		1,660		0.81		1,919,531		815		0.17		2,705,819		740		0.11
FHLB and Federal Reserve Bank stock	179,837		1,820		4.05		160,065		685		1.71		159,340		800		2.01
Mortgage loans held for sale	85,299		921		4.32		103,887		882		3.40		242,940		1,859		3.06
Other loans held for sale	725,762		7,678		4.19		597,062		5,300		3.55		615,301		4,750		3.05
Total interest earning assets	53,144,507		$	454,732	3.43	%	52,976,231		$	416,927	3.18	%	50,846,157		$	413,534	3.26	%
Cash and due from banks	538,647						548,684						571,561
Premises and equipment	385,457						398,774						452,652
Other real estate	11,439						11,759						1,406
Cash surrender value of bank-owned life insurance	1,077,231						1,070,886						1,055,663
Other assets(5)	1,379,659						1,849,564						2,090,332
Total assets	$	56,536,940					$	56,855,898					$	55,017,771
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits	$	9,513,334	$	3,598	0.15	%	$	9,549,527	$	2,372	0.10	%	$	8,601,262	$	2,441	0.11	%
Money market accounts	15,328,395		6,850		0.18		16,045,627		5,349		0.14		15,476,262		7,181		0.19
Savings deposits	1,506,195		72		0.02		1,460,648		67		0.02		1,333,297		55		0.02
Time deposits	2,829,684		1,688		0.24		3,009,795		2,138		0.29		3,792,382		4,894		0.52
Brokered deposits	2,878,536		6,293		0.88		2,788,124		3,733		0.54		3,057,607		4,799		0.63
Federal funds purchased and securities sold under repurchase agreements	246,737		219		0.35		194,352		11		0.02		204,053		35		0.07
Other short-term borrowings	478,469		896		0.74		4,653		—		—		—		—		—
Long-term debt	878,413		8,768		3.99		982,423		10,144		4.13		1,203,038		11,478		3.82
Total interest-bearing liabilities	33,659,763		$	28,384	0.33	%	34,035,149		$	23,814	0.28	%	33,667,901		$	30,883	0.36	%
Non-interest-bearing demand deposits	16,959,850						16,491,643						15,088,836
Other liabilities	1,247,646						1,144,535						1,091,321
Shareholders' equity	4,669,681						5,184,571						5,169,713
Total liabilities and shareholders' equity	$	56,536,940					$	56,855,898					$	55,017,771
Net interest income and net interest margin, taxable equivalent (6)			$	426,348	3.22	%			$	393,113	3.00	%			$	382,651	3.02	%
Less: taxable-equivalent adjustment			960						865						791
Net interest income			$	425,388					$	392,248					$	381,860

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

(2)Interest income includes net loan fees as follows: Second Quarter 2022 — $13.0 million, First Quarter 2022 — $20.7 million, and Second Quarter 2021 — $28.5 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 $(923.1) million, $(247.4) million, and $37.0 million for the Second Quarter 2022, First Quarter 2022, and Second 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
AVERAGE BALANCES, INTEREST, AND YIELDS/RATES
(Unaudited)
	Six Months Ended June 30,
	2022						2021
(dollars in thousands)	Average Balance		Interest		Yield/ Rate		Average Balance		Interest		Yield/ Rate
Assets
Interest earning assets:
Commercial loans (1) (2) (3)	$	31,316,646	$	589,029	3.79	%	$	29,930,734	$	578,877	3.90	%
Consumer loans (1) (2)	8,657,598		165,194		3.83		8,424,423		166,466		3.97
Less: Allowance for loan losses	(419,639)						(580,450)
Loans, net	39,554,605		754,223		3.84		37,774,707		745,343		3.97
Investment securities available for sale	11,206,150		97,562		1.74		8,813,191		62,755		1.42
Trading account assets	10,540		112		2.13		2,947		30		2.01
Other earning assets(4)	1,363,223		2,475		0.36		2,771,576		1,458		0.10
FHLB and Federal Reserve Bank stock	170,006		2,505		2.95		158,503		1,468		1.85
Mortgage loans held for sale	94,542		1,803		3.81		244,940		3,516		2.87
Other loans held for sale	661,768		12,978		3.90		637,901		9,555		2.98
Total interest earning assets	53,060,834		$	871,658	3.31	%	50,403,765		$	824,125	3.29	%
Cash and due from banks	543,638						545,295
Premises and equipment	392,079						456,537
Other real estate	11,598						1,613
Cash surrender value of bank-owned life insurance	1,074,076						1,053,603
Other assets(5)	1,613,313						2,144,615
Total assets	$	56,695,538					$	54,605,428
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits	$	9,531,330	$	5,970	0.13	%	$	8,586,092	$	5,414	0.13	%
Money market accounts	15,685,030		12,199		0.16		15,412,941		15,911		0.21
Savings deposits	1,483,547		139		0.02		1,276,608		105		0.02
Time deposits	2,919,242		3,826		0.26		3,972,840		11,936		0.61
Brokered deposits	2,833,580		10,026		0.71		3,212,608		11,023		0.69
Federal funds purchased and securities sold under repurchase agreements	220,689		230		0.21		206,735		69		0.07
Other short-term borrowings	242,870		896		0.73		—		—		—
Long-term debt	930,131		18,913		4.07		1,202,827		22,386		3.73
Total interest-bearing liabilities	33,846,419		$	52,199	0.31	%	33,870,651		$	66,844	0.39	%
Non-interest-bearing demand deposits	16,727,040						14,443,645
Other liabilities	1,196,375						1,138,073
Shareholders' equity	4,925,704						5,153,059
Total liabilities and shareholders' equity	$	56,695,538					$	54,605,428
Net interest income, taxable equivalent net interest margin (6)			$	819,459	3.11	%			$	757,281	3.03	%
Less: taxable-equivalent adjustment			1,824						1,565
Net interest income			$	817,635					$	755,716

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

(2)Interest income includes net loan fees as follows: 2022 — $33.7 million and 2021 — $60.4 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 $(587.1) million and $76.3 million for the six months ended June 30, 2022 and 2021, respectively.

(6)The net interest margin is calculated by dividing net interest income-TE 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	June 30, 2022		March 31, 2022		% Change		June 30, 2021		% Change
Commercial, Financial, and Agricultural	$	13,018,089	$	12,659,611	3	%	$	12,174,835	7	%
Owner-Occupied	7,760,236		7,692,714		1		7,064,599		10
Total Commercial & Industrial	20,778,325		20,352,325		2		19,239,434		8
Multi-Family	2,547,706		2,288,497		11		2,086,641		22
Hotels	1,597,930		1,593,983		—		1,411,443		13
Office Buildings	2,680,399		2,521,381		6		2,340,378		15
Shopping Centers	1,458,902		1,500,768		(3)		1,611,249		(9)
Warehouses	811,738		814,756		—		657,699		23
Other Investment Property	1,311,373		1,327,760		(1)		1,110,603		18
Total Investment Properties	10,408,048		10,047,145		4		9,218,013		13
1-4 Family Construction	234,379		229,038		2		174,009		35
1-4 Family Investment Mortgage	407,476		391,636		4		462,335		(12)
Total 1-4 Family Properties	641,855		620,674		3		636,344		1
Commercial Development	109,764		102,757		7		120,683		(9)
Residential Development	156,816		193,580		(19)		164,950		(5)
Land Acquisition	186,934		181,162		3		221,061		(15)
Land and Development	453,514		477,499		(5)		506,694		(10)
Total Commercial Real Estate	11,503,417		11,145,318		3		10,361,051		11
Consumer Mortgages	5,124,523		5,052,003		1		5,200,718		(1)
Home Equity	1,579,218		1,416,341		11		1,395,717		13
Credit Cards	194,290		188,247		3		196,207		(1)
Other Consumer Loans	2,025,007		2,014,916		1		1,842,891		10
Total Consumer	8,923,038		8,671,507		3		8,635,533		3
Total	$	41,204,780	$	40,169,150	3	%	$	38,236,018	8	%

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	June 30, 2022		March 31, 2022		% Change		June 30, 2021		% Change
Commercial, Financial, and Agricultural	$	48,601	$	64,888	(25)	%	$	70,943	(31)	%
Owner-Occupied	11,398		10,854		5		13,155		(13)
Total Commercial & Industrial	59,999		75,742		(21)		84,098		(29)
Multi-Family	2,598		2,639		(2)		2,406		8
Office Buildings	1,796		2,205		(19)		1,618		11
Shopping Centers	750		915		(18)		124		505
Warehouses	924		482		92		218		324
Other Investment Property	1,302		1,047		24		408		219
Total Investment Properties	7,370		7,288		1		4,774		54
1-4 Family Construction	55		55		—		548		(90)
1-4 Family Investment Mortgage	3,063		2,187		40		1,927		59
Total 1-4 Family Properties	3,118		2,242		39		2,475		26
Commercial Development	432		625		(31)		560		(23)
Residential Development	399		407		(2)		451		(12)
Land Acquisition	1,093		1,021		7		1,029		6
Land and Development	1,924		2,053		(6)		2,040		(6)
Total Commercial Real Estate	12,412		11,583		7		9,289		34
Consumer Mortgages	22,857		29,997		(24)		51,376		(56)
Home Equity	8,100		8,854		(9)		8,952		(10)
Other Consumer Loans	5,656		5,955		(5)		7,313		(23)
Total Consumer	36,613		44,806		(18)		67,641		(46)
Total	$	109,024	$	132,131	(17)	%	$	161,028	(32)	%


Synovus

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

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

	Non-performing Loans (NPLs)	$	109,024		132,131	131,042	155,465	161,028	(32)	%
	Impaired Loans Held for Sale	—			—	—	—	—	nm
	Other Real Estate and Other Assets	26,759			26,759	27,137	16,883	16,806	59

	Non-performing Assets (NPAs)	135,783			158,890	158,179	172,348	177,834	(24)

	Allowance for Loan Losses (ALL)	407,837			414,956	427,597	492,243	516,708	(21)
	Reserve for Unfunded Commitments	50,559			47,317	41,885	42,971	46,890	8

	Allowance for Credit Losses (ACL)	458,396			462,273	469,482	535,214	563,598	(19)

	Net Charge-Offs - Quarter	16,566			18,609	10,522	20,516	26,546
	Net Charge-Offs - YTD	35,175			18,609	77,788	67,266	46,750
	Net Charge-Offs / Average Loans - Quarter (1)	0.16		%	0.19	0.11	0.22	0.28
	Net Charge-Offs / Average Loans - YTD (1)	0.18			0.19	0.20	0.24	0.24
	NPLs / Loans	0.26			0.33	0.33	0.41	0.42
	NPAs / Loans, ORE and specific other assets	0.33			0.40	0.40	0.45	0.46
	ACL/Loans	1.11			1.15	1.19	1.40	1.47
	ALL/Loans	0.99			1.03	1.09	1.28	1.35

	ACL/NPLs	420.45			349.86	358.27	344.27	350.00
	ALL/NPLs	374.08			314.05	326.31	316.63	320.88

	Past Due Loans over 90 days and Still Accruing	$	2,251		3,067	6,770	5,960	4,415	(49)
	As a Percentage of Loans Outstanding	0.01		%	0.01	0.02	0.02	0.01

	Total Past Due Loans and Still Accruing	$	56,160		45,385	57,565	60,817	49,321	14
	As a Percentage of Loans Outstanding	0.14		%	0.11	0.15	0.16	0.13

	Accruing Troubled Debt Restructurings (TDRs)	$	164,101		145,957	119,804	126,055	124,528	32

	(1) Ratio is annualized.




	SELECTED CAPITAL INFORMATION (1)
	(Unaudited)
	(Dollars in thousands)
		June 30, 2022			December 31, 2021	June 30, 2021


	Common Equity Tier 1 Capital Ratio	9.46		%	9.50	9.75
	Tier 1 Capital Ratio	10.56			10.66	11.00
	Total Risk-Based Capital Ratio	12.43			12.61	13.25
	Tier 1 Leverage Ratio	9.03			8.72	8.72
	Total Shareholders' Equity as a Percentage of Total Assets	7.99			9.24	9.53
	Tangible Common Equity Ratio (2) (4)	6.26			7.52	7.73
	Book Value Per Common Share (3)	$	27.84		32.82	31.96
	Tangible Book Value Per Common Share (2)	24.52			29.46	28.61

	(1) Current quarter regulatory capital information is preliminary.
	(2) Excludes the carrying value of goodwill and other intangible assets from common equity and total assets.
	(3) Book Value Per Common Share consists of Total Shareholders' Equity less Preferred Stock divided by total common shares outstanding.
	(4) See "Non-GAAP Financial Measures" of this report for applicable reconciliation.

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