EX-99.2 3 snv_09302022xex992xfilingx.htm EX-99.2

Document

			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.