Synovus announces earnings for first quarter 2021

Marietta Daily Journal, Ga.
·2 min read

Apr. 20—Synovus Financial Corp. reported financial results for the quarter ending March 31, 2021.

First Quarter 2021 Highlights

— Net income available to common shareholders of $178.8 million or $1.19 per diluted share, up 23-cents sequentially and 99-cents compared to prior year.

— Adjusted diluted EPS of $1.21, up 13-cents sequentially and $1 compared to prior year.

— Period-end loans increased $552.1 million or 1% sequentially.

— Paycheck Protection Program loans increased $170.1 million and third-party consumer loan balances, including a prime auto purchase of $476 million, increased $503.2 million sequentially.

— Core transaction deposits (non-interest bearing, NOW/savings, and money market deposits excluding public and brokered funds) increased $2.05 billion or 6% sequentially.

— Total deposit costs of 0.22% down 6 bps sequentially due to ongoing repricing and product remixing.

— Net interest income of $373.9 million declined $12.1 million sequentially as lower deposit costs and deployment of excess liquidity partially offset a lower day count, continued fixed-rate asset repricing, and accelerated prepayment activity.

— Net interest margin of 3.04% vs 3.12% sequentially.

— Non-interest revenue declined $3.8 million sequentially and increased $7.1 million compared to prior year.

— Adjusted non-interest revenue increased $600,000 sequentially as broad-based growth helped offset normalization of net mortgage revenue.

— Non-interest expense declined $35.4 million sequentially and $9.1 million compared to prior year.

— Adjusted non-interest expense declined $8.5 million sequentially led by reduction in professional fees, partially offset by seasonal increases in payroll taxes and benefits.

— Reversal of provision for credit losses of $18.6 million, primarily from a more favorable economic outlook.

— Allowance for credit losses coverage ratio (to loans) of 1.58%, or 1.69% excluding PPP loans.

— Credit quality metrics remain relatively stable with a net charge-off ratio of 0.21%; non-performing assets, non-performing loans, and past dues remained near prior cycle lows.

— Preliminary CET1 ratio increased 8 bps sequentially to 9.74%, with strong core earnings helping offset a $1.20 billion increase in risk-weighted assets.

— In April, executed share repurchases of approximately $10 million as part of the $200 million authorization for 2021.