Synovus (SNV)

[MCArmel1]

Synovus beats by $0.03, misses on revenue

Jul 21 2015, 06:34 ET | About: Synovus Financial Corp. (SNV) | By: Gaurav Batavia, SA News Editor

Synovus (NYSE:SNV): Q2 EPS of $0.42 beats by $0.03.
Revenue of $272.48M (+1.5% Y/Y) misses by $0.99M.
Press Release

http://seekingalpha.com/news/2640545-synovus-beats-by-0_03-misses-on-revenue?uprof=45#email_link


Synovus Announces Earnings for the Second Quarter of 2015
Tue July 21, 2015 6:30 AM|Business Wire | About: SNV

Diluted Earnings per Share increased 25.5% as compared to 2Q14

COLUMBUS, Ga.--(BUSINESS WIRE)-- Synovus Financial Corp. (SNV) today reported financial results for the quarter ended June 30, 2015.

Second Quarter Highlights
• Net income available to common shareholders for the second quarter of 2015 was $53.2 million or $0.40 per diluted share as compared to $51.4 million, or $0.38 per diluted share for the previous quarter and $44.3 million, or $0.32 per diluted share for the second quarter 2014.
• Net income available to common shareholders for the second quarter of 2015 was $55.9 million or $0.42 per diluted share, excluding litigation contingency expense.
• Total loans grew $388.7 million or 7.4% annualized from the previous quarter and $1.04 billion or 5.1% as compared to the second quarter 2014.
• Average core deposits grew $889.9 million or 17.8% annualized from the previous quarter and $1.45 billion or 7.4% as compared to the second quarter 2014.
• Adjusted pre-tax, pre-credit costs income was $103.6 million for the second quarter 2015, an increase of $2.6 million or 2.6% from $101.0 million for the previous quarter and an increase of $4.7 million or 4.7% as compared to the second quarter 2014.
• The company continued to return capital to shareholders during the quarter, acquiring an additional $50.3 million of common stock. Since October 2014 through July 20, 2015, the company has repurchased $202.9 million of common stock, reducing total share count by 7.5 million or 5.4%.

We are pleased to report solid second quarter results as evidenced by strong loan and core deposit growth as well as increased fee income driven by strong mortgage production, said Kessel D. Stelling, chairman and CEO. During the quarter, we were also proud to be recognized as one of America's Most Reputable Banks by American Banker magazine and the Reputation Institute, and were among only three companies ranked in the top 10 by both customers and non-customers. This recognition, along with our steadily improving financial performance, validates that our focus on relationship banking defined by local leadership, personal service, and a deep commitment to strengthening our communities differentiates Synovus and clearly resonates with customers and prospects.

Balance Sheet
• Total loans ended the quarter at $21.49 billion, up $388.7 million or 7.4% annualized, from the previous quarter and up $1.04 billion or 5.1% as compared to the second quarter 2014. • Commercial real estate loans grew by $164.3 million from the previous quarter, or 9.5% annualized.
• Retail loans grew by $127.1 million from the previous quarter, or 13.0% annualized.
• Commercial and industrial loans grew by $97.0 million from the previous quarter, or 3.8% annualized.

• Total average deposits for the quarter were $22.47 billion, and grew by $851.1 million or 15.8% annualized from the previous quarter and $1.60 billion or 7.7% as compared to the second quarter 2014.
• Average core deposits for the quarter were $20.91 billion, and grew by $889.9 million or 17.8% annualized from the previous quarter and $1.45 billion or 7.4% as compared to the second quarter 2014.
• Average core deposits, excluding state, county, and municipal deposits, grew by $836.4 million or 18.9% annualized from the previous quarter and $1.44 billion or 8.4% as compared to the second quarter 2014.

Core Performance

Adjusted pre-tax, pre-credit costs income was $103.6 million for the second quarter 2015, an increase of $2.6 million or 2.6% from $101.0 million for the previous quarter and an increase of $4.7 million or 4.7% as compared to the second quarter 2014.
• Net interest income was $203.6 million for the second quarter 2015, up $381 thousand from $203.3 million in the previous quarter.
• Net interest margin declined 13 basis points to 3.15% compared to 3.28% in the previous quarter. Yield on earning assets was 3.61%, 12 basis points lower than the previous quarter, and the effective cost of funds increased 1 basis point to 0.46%. • Increased balances at the Fed contributed 7 basis points of the decline in the yield on earning assets.

• Adjusted non-interest income was $66.8 million, up $1.7 million or 2.6% compared to $65.1 million for the previous quarter and up $3.5 million or 5.5% as compared to the second quarter 2014. • Mortgage banking income increased $1.0 million or 15.8% from the previous quarter, driven by a 19.8% increase in production.
• Core banking fees1 were $32.4 million, up $876 thousand or 2.8% from the previous quarter, primarily driven by higher service charges on deposit accounts and bankcard fees.
• Gains from the sale of SBA loans of $1.4 million were down $92 thousand from the previous quarter and up $1.6 million year-to-date as compared to 2014.
• Financial Management Services revenues, consisting primarily of fiduciary and asset management fees and brokerage revenue, decreased 2.8% from the previous quarter and increased 3.7% as compared to the second quarter 2014.

• Total non-interest expense for the second quarter 2015 was $177.8 million, down $1.1 million from the previous quarter and down $4.4 million or 2.4% as compared to the second quarter 2014.
• Adjusted non-interest expense for the second quarter 2015 was $166.9 million, down $495 thousand or 0.3% from the previous quarter and down $2.6 million or 1.5% as compared to the second quarter 2014. • Employment expense of $94.6 million decreased $1.9 million from the previous quarter.
• Advertising expense of $2.9 million decreased $578 thousand from the previous quarter.
• Professional fees of $6.4 million increased $823 thousand from the previous quarter.
1 Include service charges on deposit accounts, bankcard fees, letter of credit fees, ATM fee income, line of credit non-usage fees, and miscellaneous other service charges.

Credit Quality

Broad-based improvement in credit quality continued.
• Total credit costs were $12.8 million in the second quarter 2015 compared to $15.7 million in the previous quarter.
• Non-performing loans, excluding loans held for sale, were $173.6 million at June 30, 2015, down $20.6 million or 10.6% from the previous quarter, and down $85.9 million or 33.1% from June 30, 2014. The non-performing loan ratio was 0.81% at June 30, 2015, compared to 0.92% at the end of the previous quarter and 1.27% at June 30, 2014.
• Total non-performing assets were $240.1 million at June 30, 2015, down $30.0 million or 11.1% from the previous quarter, and down $123.0 million or 33.9% from June 30, 2014. The non-performing asset ratio was 1.11% at June 30, 2015, compared to 1.28% at the end of the previous quarter and 1.77% at June 30, 2014.
• Total delinquencies (consisting of loans 30 or more days past due and still accruing) remain low at 0.24% of total loans at June 30, 2015 compared to 0.27% the previous quarter and 0.30% at June 30, 2014. Total loans past due 90 days or more and still accruing were 0.02% of total loans at June 30, 2015, unchanged from March 31, 2015 and June 30, 2014.
• Net charge-offs were $5.3 million in the second quarter 2015, down $7.0 million or 57.0% from $12.3 million in the previous quarter. The annualized net charge-off ratio was 0.10% in the second quarter compared to 0.23% in the previous quarter.

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