Synovus (SNV)

[MCArmel1]

Synovus EPS in-line, misses on revenue

Oct 20 2015, 06:33 ET | About: Synovus Financial Corp. (SNV) | By: Gaurav Batavia, SA News Editor

Synovus (NYSE:SNV): Q3 EPS of $0.42 in-line.

Revenue of $274.85M (+1.7% Y/Y) misses by $0.38M.

Press Release

http://seekingalpha.com/news/2838936-synovus-eps-in-line-misses-on-revenue?uprof=45#email_link


Synovus Announces Earnings for Third Quarter 2015, $300 Million Stock Repurchase Program, and 20% Increase in Quarterly Common Stock Dividend
1 comment | Tue October 20, 2015 6:30 AM|Business Wire | About: SNV

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

Third Quarter Highlights
• Net income available to common shareholders for the third quarter of 2015 was $55.4 million or $0.42 per diluted share as compared to $53.2 million or $0.40 per diluted share for the previous quarter and $44.2 million or $0.32 per diluted share for the third quarter 2014. • Diluted EPS increased 32.2% as compared to the third quarter 2014; adjusted diluted EPS increased 14.6% as compared to the third quarter 2014.

• Total loans grew $369.4 million or 6.8% annualized from the previous quarter and $1.28 billion or 6.2% as compared to the third quarter 2014.
• Average core deposits grew $592.2 million or 11.2% annualized from the previous quarter and $2.06 billion or 10.6% as compared to the third quarter 2014.
• Adjusted pre-tax, pre-credit costs income was $104.7 million for the third quarter 2015, an increase of $1.1 million or 1.1% from $103.6 million for the previous quarter and an increase of $1.2 million or 1.2% as compared to the third quarter 2014.
• Credit quality continued to improve as the NPL ratio declined to 0.72% at September 30, 2015 from 0.81% at June 30, 2015 and the annualized net chargeoff ratio for the third quarter declined to 0.12% and 0.15% yeartodate compared to 0.24% for the third quarter 2014 and 0.41% for yeartodate 2014.
• The Company completed the $250 million common stock repurchase program announced in the fourth quarter 2014, which resulted in repurchases totaling 9.1 million shares and reduced total share count by 6.5%.
• The Board of Directors authorized a new share repurchase program of up to $300 million of the Companys common stock to be executed over the next 15 months.
• Additionally, the Board of Directors approved a 20% increase in the Companys quarterly common stock dividend from $0.10 to $0.12 per share, effective with the quarterly dividend payable in January 2016.

We are pleased to announce a $300 million share repurchase program to be executed over the next 15 months and a 20% increase in our quarterly common stock dividend. Our ability to take this action is a direct result of our sustained growth, significantly improved risk profile, and strong capital position, said Kessel D. Stelling, Synovus Chairman and CEO. Our performance in the third quarter demonstrated our teams continued progress in growing loans, especially in high-growth markets; in growing core deposits across our footprint; and in improving the quality of our balance sheet. Moving ahead, we are actively engaged in initiatives that generate growth, specifically in areas that further diversify our balance sheet and improve our fee income contribution. We continue to add revenue-generating talent at an aggressive pace while also managing expenses to support our investments in growth. Above all, our team remains committed to serving customers and winning new relationships.

Balance Sheet
• Total loans ended the quarter at $21.86 billion, up $369.4 million or 6.8% annualized, from the previous quarter and up $1.28 billion or 6.2% as compared to the third quarter 2014. • Commercial real estate loans grew by $134.9 million from the previous quarter, or 7.6% annualized.
• Commercial and industrial loans grew by $122.4 million from the previous quarter, or 4.7% annualized.
• Retail loans grew by $111.3 million from the previous quarter, or 10.9% annualized.

• Total average deposits for the quarter were $22.86 billion, and grew by $393.4 million or 6.9% annualized from the previous quarter and $1.92 billion or 9.2% as compared to the third quarter 2014.
• Average core deposits for the quarter were $21.50 billion, and grew by $592.2 million or 11.2% annualized from the previous quarter and $2.06 billion or 10.6% as compared to the third quarter 2014.
• Average core deposits, excluding state, county, and municipal deposits, grew by $745.2 million or 15.9% annualized from the previous quarter and $1.98 billion or 11.4% as compared to the third quarter 2014.

Core Performance

Adjusted pre-tax, pre-credit costs income was $104.7 million for the third quarter 2015, an increase of $1.1 million or 1.1% from $103.6 million for the previous quarter and an increase of $1.2 million or 1.2% as compared to the third quarter 2014.
• Net interest income was $207.8 million for the third quarter 2015, up $4.1 million from $203.6 million in the previous quarter and up $1.5 million or 0.7% as compared to the third quarter 2014.
• Net interest margin declined one basis point to 3.14% compared to 3.15% in the previous quarter. Yield on earning assets was 3.60%, one basis point lower than the previous quarter, and the effective cost of funds was unchanged from the previous quarter at 0.46%. • The yield on loans decreased 4 basis points to 4.10%.
• Average balances at the Fed decreased $215.2 million or 14.4%.

• Adjusted non-interest income was $67.1 million, up $211 thousand or 0.3% compared to $66.8 million for the previous quarter and up $3.1 million or 4.8% as compared to the third quarter 2014. • Core banking fees1 were $33.9 million, up $1.5 million or 4.7% from the previous quarter, primarily driven by higher service charges on deposit accounts and other service charges.
• Financial Management Services revenues, consisting primarily of fiduciary and asset management fees and brokerage revenue, were $19.8 million, up 0.2% from the previous quarter.
• Mortgage banking income decreased $1.5 million or 20.6% from the previous quarter, due to a decrease in production volume of 18.4%.
• Gains from the sale of SBA loans of $1.1 million were down $300 thousand from the previous quarter and up $922 thousand year-to-date as compared to 2014.

• Total non-interest expense for the third quarter 2015 was $177.9 million, flat to the previous quarter and down $15.8 million or 8.2% as compared to the third quarter 2014.
• Adjusted non-interest expense for the third quarter 2015 was $170.1 million, up $3.3 million or 2.0% from the previous quarter and up $3.4 million or 2.0% as compared to the third quarter 2014. • Employment expense of $94.3 million decreased $224 thousand from the previous quarter.
• Advertising expense of $5.5 million increased $2.6 million from the previous quarter.
• Professional fees of $6.4 million decreased $46 thousand from the previous quarter. • Compared to the third quarter 2014, professional fees were up $3.8 million; the third quarter 2014 included a benefit from a $3.6 million net insurance recovery for incurred legal fees related to litigation.

Credit Quality

Broad-based improvement in credit quality continued.
• Total credit costs were $10.3 million in the third quarter 2015 compared to $12.8 million in the previous quarter.
• Non-performing loans, excluding loans held for sale, were $157.6 million at September 30, 2015, down $16.0 million or 9.2% from the previous quarter, and down $84.7 million or 35.0% from September 30, 2014. The non-performing loan ratio was 0.72% at September 30, 2015, compared to 0.81% at the end of the previous quarter and 1.18% at September 30, 2014.
• Total non-performing assets were $222.0 million at September 30, 2015, down $18.1 million or 7.5% from the previous quarter, and down $102.4 million or 31.6% from September 30, 2014. The non-performing asset ratio was 1.01% at September 30, 2015, compared to 1.11% at the end of the previous quarter and 1.57% at September 30, 2014.
• Total delinquencies (consisting of loans 30 or more days past due and still accruing) remain low at 0.18% of total loans at September 30, 2015 compared to 0.24% at June 30, 2015 and 0.35% at September 30, 2014. Total loans past due 90 days or more and still accruing were 0.01% of total loans at September 30, 2015, down from June 30, 2015 and September 30, 2014 at 0.02%.
• Net charge-offs were $6.8 million in the third quarter 2015, down $1.5 million or 27.4% from $5.3 million in the previous quarter. The annualized net charge-off ratio was 0.12% in the third quarter compared to 0.10% in the previous quarter.

Capital Ratios

Capital ratios remained strong and include the impact of common stock repurchases completed through September 30, 2015.
• Common Equity Tier 1 ratio was 10.62% at September 30, 2015 compared to 10.73% at June 30, 2015.
• Tier 1 Capital ratio was 10.62% at September 30, 2015 compared to 10.73% at June 30, 2015.
• Total Risk Based Capital ratio was 12.04% at September 30, 2015 compared to 12.18% at June 30, 2015.
• Tier 1 Leverage ratio was 9.44% at September 30, 2015 compared to 9.48% at June 30, 2015.
• Tangible Common Equity ratio was 10.18% at September 30, 2015 compared to 10.13% at June 30, 2015.

Capital Management
• During the third quarter, the Company completed the $250 million common stock repurchase program announced in the fourth quarter 2014, which resulted in 9.1 million total shares repurchased and reduced total share count by 6.5%.
• Additionally, during the third quarter, the Board of Directors authorized a new share repurchase program of up to $300 million of the Companys common stock to be executed over the next 15 months.
• The Board of Directors also approved a 20% increase in the Companys quarterly common stock dividend from $0.10 to $0.12 per share, effective with the quarterly dividend payable in January 2016.

More...

http://seekingalpha.com/pr/15036166-synovus-announces-earnings-for-third-quarter-2015-300-million-stock-repurchase-program-and-20-percent-increase-in-quarterly-common-stock-dividend