Synovus Financial 8K Synovus Announces Earnings for the Third Quarter 2022 | SNV 20 Oct 22


Synovus				Exhibit 99.2

INCOME STATEMENT DATA
(Unaudited)

(Dollars in thousands, except per share data)	Nine Months Ended September 30,

	2022			2021			22 vs '21
							% Change

Interest income	$	1,421,133		$	1,235,064		15	%
Interest expense	125,578			94,430			33

Net interest income	1,295,555			1,140,634			14
Provision for (reversal of) credit losses	49,669			(51,041)			nm

Net interest income after provision for credit losses	1,245,886			1,191,675			5

Non-interest revenue:
Service charges on deposit accounts	69,428			64,089			8
Fiduciary and asset management fees	59,577			56,545			5
Card fees	45,946			38,538			19
Brokerage revenue	47,038			41,644			13
Mortgage banking income	14,922			47,312			(68)
Capital markets income	19,704			18,929			4
Income from bank-owned life insurance	22,514			22,851			(1)
Investment securities gains (losses), net	—			(1,028)			nm
Other non-interest revenue	27,768			44,117			(37)

Total non-interest revenue	306,897			332,997			(8)

Non-interest expense:
Salaries and other personnel expense	499,081			482,408			3
Net occupancy, equipment, and software expense	129,538			126,442			2
Third-party processing and other services	65,486			63,897			2
Professional fees	26,094			23,771			10
FDIC insurance and other regulatory fees	20,851			16,338			28
Restructuring charges	(7,318)			1,265			nm
Other operating expenses	114,779			90,576			27

Total non-interest expense	848,511			804,697			5

Income before income taxes	704,272			719,975			(2)
Income tax expense	152,140			159,910			(5)

Net income	552,132			560,065			(1)

Less: Preferred stock dividends	24,872			24,872			—

Net income available to common shareholders	$	527,260		$	535,193		(1)	%

Net income per common share, basic	$	3.63		$	3.63		0	%

Net income per common share, diluted	3.60			3.59			0

Cash dividends declared per common share	1.02			0.99			3

Return on average assets *	1.29		%	1.37		%	(8)	bps
Return on average common equity *	16.37			15.37			100

Weighted average common shares outstanding, basic	145,329			147,622			(2)	%
Weighted average common shares outstanding, diluted	146,465			149,069			(2)

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


Synovus

	INCOME STATEMENT DATA
	(Unaudited)

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

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

	Interest income	$	551,299		453,772	416,062	418,279	412,504	34	%
	Interest expense	73,380			28,384	23,814	25,966	27,587	166

	Net interest income	477,919			425,388	392,248	392,313	384,917	24
	Provision for (reversal of) credit losses	25,581			12,688	11,400	(55,210)	(7,868)	nm

	Net interest income after provision for credit losses	452,338			412,700	380,848	447,523	392,785	15

	Non-interest revenue:
	Service charges on deposit accounts	23,398			23,491	22,539	22,221	22,641	3
	Fiduciary and asset management fees	19,201			20,100	20,277	20,602	19,786	(3)
	Card fees	15,101			16,089	14,756	12,861	13,238	14
	Brokerage revenue	17,140			15,243	14,655	14,795	14,745	16
	Mortgage banking income	5,065			3,904	5,953	7,059	11,155	(55)
	Capital markets income	6,839			7,393	5,472	7,188	8,089	(15)
	Income from bank-owned life insurance	6,792			9,165	6,556	15,168	6,820	—
	Investment securities gains (losses), net	—			—	—	230	962	nm
	Other non-interest revenue	10,762			1,881	15,126	16,944	17,519	(39)

	Total non-interest revenue	104,298			97,266	105,334	117,068	114,955	(9)

	Non-interest expense:
	Salaries and other personnel expense	173,334			161,063	164,684	167,018	160,364	8
	Net occupancy, equipment, and software expense	43,462			43,199	42,877	42,780	43,483	—
	Third-party processing and other services	22,539			21,952	20,996	22,791	19,446	16
	Professional fees	6,755			10,865	8,474	9,014	6,739	—
	FDIC insurance and other regulatory fees	7,707			6,894	6,250	6,016	5,212	48
	Restructuring charges	956			(1,850)	(6,424)	5,958	319	nm
	Other operating expenses	39,257			39,928	35,593	41,630	31,469	25

	Total non-interest expense	294,010			282,051	272,450	295,207	267,032	10

	Income before income taxes	262,626			227,915	213,732	269,384	240,708	9
	Income tax expense	59,582			49,863	42,695	68,983	53,935	10

	Net income	203,044			178,052	171,037	200,401	186,773	9

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

	Net income available to common shareholders	$	194,753		169,761	162,746	192,110	178,482	9	%

	Net income per common share, basic	$	1.34		1.17	1.12	1.32	1.22	10	%

	Net income per common share, diluted	1.33			1.16	1.11	1.31	1.21	10

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

	Return on average assets *	1.39		%	1.26	1.22	1.40	1.34	5	bps
	Return on average common equity *	18.66			16.48	14.20	16.11	14.96	370

	Weighted average common shares outstanding, basic	145,386			145,328	145,273	145,316	146,308	(1)	%
	Weighted average common shares outstanding, diluted	146,418			146,315	146,665	146,793	147,701	(1)

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


Synovus


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

	(Unaudited)

	(In thousands, except share data)

	ASSETS
	Cash and due from banks	$	516,163	$	432,925	$	483,035
	Interest-bearing funds with Federal Reserve Bank	1,260,748		2,479,006		2,103,497
	Interest earning deposits with banks	32,445		25,535		23,261
	Federal funds sold and securities purchased under resale agreements	58,448		72,387		77,627
	Cash, cash equivalents, and restricted cash	1,867,804		3,009,853		2,687,420

	Investment securities available for sale, at fair value	9,587,508		10,918,329		10,481,071
	Loans held for sale ($56,517, $108,198, and $152,258 measured at fair value, respectively)	696,450		750,642		550,948

	Loans, net of deferred fees and costs	42,571,458		39,311,958		38,341,030
	Allowance for loan losses	(421,359)		(427,597)		(492,243)
	Loans, net	42,150,099		38,884,361		37,848,787

	Cash surrender value of bank-owned life insurance	1,084,060		1,068,616		1,065,256
	Premises, equipment, and software, net	376,823		407,241		423,933
	Goodwill	452,390		452,390		452,390
	Other intangible assets, net	29,242		35,596		37,975
	Other assets	2,395,146		1,790,198		1,961,349
	Total assets	$	58,639,522	$	57,317,226	$	55,509,129

	LIABILITIES AND SHAREHOLDERS' EQUITY
	Liabilities:
	Deposits:
	Non-interest-bearing deposits	$	16,359,551	$	16,392,653	$	15,787,882
	Interest-bearing deposits	31,338,013		33,034,623		31,900,537

	Total deposits	47,697,564		49,427,276		47,688,419

	Federal funds purchased and securities sold under repurchase agreements	240,210		264,133		262,548
	Long-term debt	4,434,327		1,204,229		1,203,761
	Other liabilities	2,037,706		1,124,788		1,101,599
	Total liabilities	54,409,807		52,020,426		50,256,327

	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 170,097,791, 169,383,758, and 169,170,589; outstanding 145,442,933, 145,010,086, and 145,483,994	170,098		169,384		169,171
	Additional paid-in capital	3,916,729		3,894,109		3,883,289
	Treasury stock, at cost – 24,654,858, 24,373,672, and 23,686,595 shares	(944,484)		(931,497)		(898,707)
	Accumulated other comprehensive income (loss), net	(1,534,314)		(82,321)		(5,462)
	Retained earnings	2,084,541		1,709,980		1,567,366
	Total shareholders’ equity	4,229,715		5,296,800		5,252,802
	Total liabilities and shareholders' equity	$	58,639,522	$	57,317,226	$	55,509,129


Synovus
AVERAGE BALANCES, INTEREST, AND YIELDS/RATES
(Unaudited)
	Third Quarter 2022						Second Quarter 2022						Third 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)	$	32,836,799	$	384,995	4.65	%	$	31,870,387	$	308,442	3.88	%	$	28,984,837	$	285,445	3.91	%
Consumer loans (1) (2)	8,931,573		94,425		4.21		8,720,488		83,826		3.86		8,549,296		84,615		3.94
Less: Allowance for loan losses	(419,160)		—		—		(415,372)		—		—		(514,828)		—		—
Loans, net	41,349,212		479,420		4.60		40,175,503		392,268		3.92		37,019,305		370,060		3.97
Investment securities available for sale	11,126,705		53,550		1.93		11,153,091		50,312		1.81		9,876,651		35,876		1.45
Trading account assets	16,771		81		1.93		11,987		73		2.44		5,192		15		1.15
Other earning assets(4)	1,012,717		5,791		2.24		813,028		1,660		0.81		3,271,501		1248		0.15
FHLB and Federal Reserve Bank stock	244,879		1,412		2.31		179,837		1,820		4.05		159,741		501		1.26
Mortgage loans held for sale	66,601		862		5.18		85,299		921		4.32		196,032		1,410		2.88
Other loans held for sale	892,805		11,155		4.89		725,762		7,678		4.19		527,736		4,130		3.06
Total interest earning assets	54,709,690		$	552,271	4.01	%	53,144,507		$	454,732	3.43	%	51,056,158		$	413,240	3.22	%
Cash and due from banks	557,537						538,647						611,783
Premises and equipment	383,189						385,457						447,046
Other real estate	2,398						11,439						1,513
Cash surrender value of bank-owned life insurance	1,080,914						1,077,231						1,061,478
Other assets(5)	1,322,251						1,379,659						2,148,282
Total assets	$	58,055,979					$	56,536,940					$	55,326,260
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits	$	8,436,922	$	5,782	0.27	%	$	9,513,334	$	3,598	0.15	%	$	8,463,325	$	2,192	0.10	%
Money market accounts	15,411,450		20,696		0.53		15,328,395		6,850		0.18		15,597,723		6,081		0.15
Savings deposits	1,508,312		84		0.02		1,506,195		72		0.02		1,377,089		60		0.02
Time deposits	2,270,163		2,428		0.42		2,829,684		1,688		0.24		3,424,028		3,572		0.41
Brokered deposits	3,899,669		17,927		1.82		2,878,536		6,293		0.88		2,859,123		4,181		0.58
Federal funds purchased and securities sold under repurchase agreements	240,412		641		1.04		246,737		219		0.35		202,525		36		0.07
Other short-term borrowings	702,443		3,666		2.04		478,469		896		0.74		—		—		—
Long-term debt	2,656,939		22,156		3.29		878,413		8,768		3.99		1,203,500		11,465		3.81
Total interest-bearing liabilities	35,126,310		$	73,380	0.81	%	33,659,763		$	28,384	0.33	%	33,127,313		$	27,587	0.33	%
Non-interest-bearing demand deposits	16,904,353						16,959,850						15,755,929
Other liabilities	1,346,655						1,247,646						1,171,119
Shareholders' equity	4,678,661						4,669,681						5,271,899
Total liabilities and shareholders' equity	$	58,055,979					$	56,536,940					$	55,326,260
Net interest income and net interest margin, taxable equivalent (6)			$	478,891	3.49	%			$	426,348	3.22	%			$	385,653	3.01	%
Less: taxable-equivalent adjustment			972						960						736
Net interest income			$	477,919					$	425,388					$	384,917

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

(2)Interest income includes net loan fees as follows: Third Quarter 2022 — $11.9 million, Second Quarter 2022 — $13.0 million, and Third Quarter 2021 — $30.4 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 $(1.06) billion, $(923.1) million, and $66.6 million for the Third Quarter 2022, Second Quarter 2022, and Third 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)
	Nine Months Ended September 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)	$	31,828,932	$	974,024	4.09	%	$	29,611,970	$	864,322	3.90	%
Consumer loans (1) (2)	8,749,927		259,619		3.95		8,466,505		251,081		3.95
Less: Allowance for loan losses	(419,478)						(558,336)
Loans, net	40,159,381		1,233,643		4.11		37,520,139		1,115,403		3.97
Investment securities available for sale	11,179,378		151,111		1.80		9,171,573		98,631		1.43
Trading account assets	12,640		193		2.04		3,703		44		1.60
Other earning assets(4)	1,245,102		8,267		0.88		2,940,049		2,705		0.12
FHLB and Federal Reserve Bank stock	195,238		3,917		2.67		158,921		1,971		1.65
Mortgage loans held for sale	85,126		2,665		4.17		228,458		4,926		2.87
Other loans held for sale	739,627		24,133		4.30		600,776		13,685		3.00
Total interest earning assets	53,616,492		$	1,423,929	3.55	%	50,623,619		$	1,237,365	3.27	%
Cash and due from banks	548,322						567,702
Premises and equipment	389,083						453,339
Other real estate	8,498						1,579
Cash surrender value of bank-owned life insurance	1,076,381						1,056,257
Other assets(5)	1,515,226						2,145,850
Total assets	$	57,154,002					$	54,848,346
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits	$	9,162,519	$	11,752	0.17	%	$	8,544,720	$	7,606	0.12	%
Money market accounts	15,592,834		32,896		0.28		15,475,212		21,994		0.19
Savings deposits	1,491,893		223		0.02		1,310,470		164		0.02
Time deposits	2,700,505		6,254		0.31		3,787,892		15,507		0.55
Brokered deposits	3,192,848		27,952		1.17		3,093,485		15,204		0.66
Federal funds purchased and securities sold under repurchase agreements	227,335		871		0.51		205,316		104		0.07
Other short-term borrowings	397,744		4,561		1.51		—		—		—
Long-term debt	1,512,059		41,069		3.61		1,203,054		33,851		3.75
Total interest-bearing liabilities	34,277,737		$	125,578	0.48	%	33,620,149		$	94,430	0.37	%
Non-interest-bearing demand deposits	16,786,794						14,885,880
Other liabilities	1,247,020						1,149,209
Shareholders' equity	4,842,451						5,193,108
Total liabilities and shareholders' equity	$	57,154,002					$	54,848,346
Net interest income, taxable equivalent net interest margin (6)			$	1,298,351	3.24	%			$	1,142,935	3.02	%
Less: taxable-equivalent adjustment			2,796						2,301
Net interest income			$	1,295,555					$	1,140,634

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

(2)Interest income includes net loan fees as follows: 2022 — $45.6 million and 2021 — $90.8 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 $(747.7) million and $73.1 million for the nine months ended September 30, 2022 and 2021, respectively.

(6)The net interest margin is calculated by dividing 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	September 30, 2022		June 30, 2022		% Change		September 30, 2021		% Change
Commercial, Financial, and Agricultural	$	13,254,966	$	13,018,089	2	%	$	11,864,362	12	%
Owner-Occupied	7,957,550		7,760,236		3		7,129,926		12
Total Commercial & Industrial	21,212,516		20,778,325		2		18,994,288		12
Multi-Family	2,949,172		2,547,706		16		2,197,139		34
Hotels	1,712,016		1,597,930		7		1,441,414		19
Office Buildings	2,945,771		2,680,399		10		2,341,316		26
Shopping Centers	1,441,385		1,458,902		(1)		1,570,020		(8)
Warehouses	943,961		811,738		16		687,496		37
Other Investment Property	1,246,099		1,311,373		(5)		1,244,904		—
Total Investment Properties	11,238,404		10,408,048		8		9,482,289		19
1-4 Family Construction	249,840		234,379		7		191,906		30
1-4 Family Investment Mortgage	389,787		407,476		(4)		421,968		(8)
Total 1-4 Family Properties	639,627		641,855		—		613,874		4
Commercial Development	92,159		109,764		(16)		103,512		(11)
Residential Development	119,019		156,816		(24)		186,033		(36)
Land Acquisition	198,756		186,934		6		188,378		6
Land and Development	409,934		453,514		(10)		477,923		(14)
Total Commercial Real Estate	12,287,965		11,503,417		7		10,574,086		16
Consumer Mortgages	5,166,928		5,124,523		1		5,108,457		1
Home Equity	1,708,246		1,579,218		8		1,359,688		26
Credit Cards	197,978		194,290		2		199,700		(1)
Other Consumer Loans	1,997,825		2,025,007		(1)		2,104,811		(5)
Total Consumer	9,070,977		8,923,038		2		8,772,656		3
Total	$	42,571,458	$	41,204,780	3	%	$	38,341,030	11	%

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	September 30, 2022		June 30, 2022		% Change		September 30, 2021		% Change
Commercial, Financial, and Agricultural	$	59,275	$	48,601	22	%	$	77,349	(23)	%
Owner-Occupied	8,433		11,398		(26)		13,134		(36)
Total Commercial & Industrial	67,708		59,999		13		90,483		(25)
Multi-Family	2,550		2,598		(2)		2,396		6
Office Buildings	884		1,796		(51)		2,488		(64)
Shopping Centers	742		750		(1)		932		(20)
Warehouses	223		924		(76)		302		(26)
Other Investment Property	641		1,302		(51)		624		3
Total Investment Properties	5,040		7,370		(32)		6,742		(25)
1-4 Family Construction	55		55		—		522		(89)
1-4 Family Investment Mortgage	3,036		3,063		(1)		2,364		28
Total 1-4 Family Properties	3,091		3,118		(1)		2,886		7
Commercial Development	422		432		(2)		463		(9)
Residential Development	267		399		(33)		449		(41)
Land Acquisition	980		1,093		(10)		1,024		(4)
Land and Development	1,669		1,924		(13)		1,936		(14)
Total Commercial Real Estate	9,800		12,412		(21)		11,564		(15)
Consumer Mortgages	32,527		22,857		42		37,541		(13)
Home Equity	7,121		8,100		(12)		8,702		(18)
Other Consumer Loans	4,938		5,656		(13)		7,175		(31)
Total Consumer	44,586		36,613		22		53,418		(17)
Total	$	122,094	$	109,024	12	%	$	155,465	(21)	%


Synovus

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

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

	Non-performing Loans (NPLs)	$	122,094		109,024	132,131	131,042	155,465	(21)	%
	Impaired Loans Held for Sale	447			—	—	—	—	nm
	Other Real Estate and Other Assets	15,320			26,759	26,759	27,137	16,883	(9)

	Non-performing Assets (NPAs)	137,861			135,783	158,890	158,179	172,348	(20)

	Allowance for Loan Losses (ALL)	421,359			407,837	414,956	427,597	492,243	(14)
	Reserve for Unfunded Commitments	57,936			50,559	47,317	41,885	42,971	35

	Allowance for Credit Losses (ACL)	479,295			458,396	462,273	469,482	535,214	(10)

	Net Charge-Offs - Quarter	4,682			16,565	18,609	10,522	20,516
	Net Charge-Offs - YTD	39,856			35,174	18,609	77,788	67,266
	Net Charge-Offs / Average Loans - Quarter (1)	0.04		%	0.16	0.19	0.11	0.22
	Net Charge-Offs / Average Loans - YTD (1)	0.13			0.18	0.19	0.20	0.24
	NPLs / Loans	0.29			0.26	0.33	0.33	0.41
	NPAs / Loans, ORE and specific other assets	0.32			0.33	0.40	0.40	0.45
	ACL/Loans	1.13			1.11	1.15	1.19	1.40
	ALL/Loans	0.99			0.99	1.03	1.09	1.28

	ACL/NPLs	392.56			420.45	349.86	358.27	344.27
	ALL/NPLs	345.11			374.08	314.05	326.31	316.63

	Past Due Loans over 90 days and Still Accruing	$	3,443		2,251	3,067	6,770	5,960	(42)
	As a Percentage of Loans Outstanding	0.01		%	0.01	0.01	0.02	0.02

	Total Past Due Loans and Still Accruing	$	63,545		56,160	45,385	57,565	60,817	4
	As a Percentage of Loans Outstanding	0.15		%	0.14	0.11	0.15	0.16

	Accruing Troubled Debt Restructurings (TDRs)	$	118,755		164,101	145,957	119,804	126,055	(6)

	(1) Ratio is annualized.




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


	Common Equity Tier 1 Capital Ratio	9.51		%	9.50	9.58
	Tier 1 Capital Ratio	10.58			10.66	10.79
	Total Risk-Based Capital Ratio	12.44			12.61	12.92
	Tier 1 Leverage Ratio	9.04			8.72	8.78
	Total Shareholders' Equity as a Percentage of Total Assets	7.21			9.24	9.46
	Tangible Common Equity Ratio (2) (4)	5.52			7.52	7.68
	Book Value Per Common Share (3)	$	25.39		32.82	32.41
	Tangible Book Value Per Common Share (2)	22.08			29.46	29.04

	(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 Third Quarter 2022