Synovus announces earnings for 2Q 2021

·2 min read

Jul. 20—Synovus Financial Corp. reported financial results for the quarter that ended June 30.

2Q 2021 highlights

—Net income available to common shareholders of $177.9 million or $1.19 per diluted share, unchanged sequentially and up 62-cents compared to prior year.

—Adjusted diluted EPS of $1.20, down one-cent sequentially and up 97-cents compared to prior year.

—Period-end loans decreased $569.1 million or 1% sequentially.

—Paycheck Protection Program loans declined $763.4 million and third-party consumer loan balances increased $272.5 million sequentially.

—Core transaction deposits, non-interest bearing, NOW/savings, and money market deposits excluding public and brokered funds, increased $702.4 million or 2% sequentially.

—Total deposit costs of 0.16% down 6 bps sequentially due to ongoing repricing and product remixing.

—Net interest income of $381.9 million increased $8 million sequentially as asset growth, reduced deposit costs and a higher day count more than offset the reduction in PPP fee income.

—Net interest margin of 3.02%, down 2 bps sequentially.

—Non-interest revenue decreased $3.9 million sequentially as broad-based growth partially offset the normalization of net mortgage revenues.

—Adjusted non-interest revenue decreased $6.2 million.

—Non-interest expense increased $3.4 million sequentially and decreased $13.6 million compared to prior year.

—Adjusted non-interest expense increased $2.4 million sequentially as the benefits from various efficiency initiatives were offset by higher commissions, incentives, and expenses primarily related to additional PPP forgiveness and expenses associated with higher third-party consumer loan balances.

—Reversal of provision for credit losses of $24.6 million, primarily from a more favorable economic outlook.

—Allowance for credit losses coverage ratio to loans of 1.47%, or 1.54% excluding PPP loans.

—Credit quality metrics remain relatively stable, near historical lows. The non-performing asset ratio fell 4 bps to 0.46% sequentially; criticized and classified loans declined 14% compared to prior quarter.

—Preliminary CET1 ratio increased 1 bp sequentially to 9.75%, with strong core earnings helping offset the decline from $92.5 million in share repurchases at an average price of $47.51, reducing average diluted outstanding shares from the prior quarter by 1.3%.

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