Media Contact
Lee Underwood
Media Relations
(706) 644-0528

Investor Contact
Steve Adams
Investor Relations
(706) 641-6462

Synovus Announces Earnings for the Second Quarter 2019
Diluted Earnings per Share of $0.96, up 5.5% vs. $0.91 in 2Q18
Adjusted Diluted Earnings per Share of $1.00, up 8.4% vs. $0.92 in 2Q18
COLUMBUS, Ga., July 16, 2019 - Synovus Financial Corp. (NYSE: SNV) today reported financial results for the
quarter ended June 30, 2019.
Second Quarter 2019 Highlights
• Diluted EPS of $0.96; adjusted diluted EPS of $1.00, up 1.5% sequentially and 8.4% year over year.
• Period-end loan growth of $504.1 million, or 5.7% annualized, from prior quarter.
• Average non-interest-bearing deposits excluding public funds up $312.4 million or 15.1% sequentially.
• Non-interest income growth of 13.1% sequentially, or 15.0% on an adjusted basis.
• Key credit metrics continued to improve, with non-performing asset (NPA) and non-performing loan ratios
declining 5 and 6 basis points, respectively.
• Completed integration of all Florida Community Bank (FCB) systems, customers, branches, and branding.
• Increased the 2019 share repurchase authorization from $400 million to $725 million.
• Announced and priced a public offering of $350 million of Fixed-Rate Reset Non-Cumulative Perpetual
Preferred Stock, Series E.
Second Quarter Summary
Reported
(dollars in thousands)
Net income available to
common shareholders
Diluted earnings per share

2Q19
$

153,034

Adjusted

1Q19
$

117,036

2Q18
$

108,622

2Q19
$

158,892

$

160,155

$

109,824

0.96

0.72

0.91

36,138,561

35,634,501

25,134,056

N/A

N/A

N/A

Total deposits

37,966,722

38,075,190

26,442,688

N/A

N/A

N/A

Total revenues

487,880

477,183

358,084

1.34 %

1.06 %

1.42 %

488,270
1.39 %

0.98

2Q18

Total loans

Return on avg assets

1.00

1Q19

476,250
1.45 %

0.92

359,417
1.43 %

Return on avg common equity

13.90

10.98

15.39

14.43

15.03

15.56

Return on avg tangible
common equity

16.09

12.88

15.80

16.70

17.52

15.97

3.69

3.78

3.86

3.48

3.59

54.14

61.28

56.99

52.08

50.24

Net charge-off ratio

0.13

0.19

0.29

N/A

N/A

N/A

NPA ratio

0.39

0.44

0.50

N/A

N/A

N/A

Net interest margin
Efficiency ratio

N/A
56.41

 “Our results in the second quarter reflect the strength of our core business and our geography, with broad-based loan
growth and solid credit and profitability metrics,” said Kessel D. Stelling, Synovus chairman and CEO. “We are
pleased with the early wins in our expanded Florida footprint as we introduce our broader capabilities to new
customers and prospects. We not only expect continued successes in that region, but across our entire footprint, as
our core and specialty bankers work together to serve customers. The real and sustaining competitive differentiator
for our company remains our talented team that is passionate about the important work they do and proud to
represent our brand of relationship-centered banking and financial services in our markets.”
Balance Sheet
Loans**

(dollars in millions)
Commercial & industrial

2Q19

$ 16,247.5 $ 16,127.6 $

Commercial real estate
Consumer
Unearned income
Total loans
*
**

•
•
•

1Q19

Linked
Quarter
Change
119.9

Linked
Quarter %
Change*

2Q18

Year/Year
Change

Year/Year
% Change

3.0 % $ 12,275.5 $

3,972.1

32.4 %

10,348.4

10,268.4

80.0

3.1

6,644.2

3,704.3

55.8

9,566.1

9,262.1

304.0

13.2

6,237.1

3,329.0

53.4

(23.6)

(23.7)

$ 36,138.6 $ 35,634.5 $

0.1
504.1

(1.7)

(22.7)

(0.9)

5.7 % $ 25,134.1 $ 11,004.5

3.8
43.8 %

Annualized
Amounts may not total due to rounding

Total loans ended the quarter at $36.14 billion, up $504.1 million or 5.7% annualized from the previous quarter,
with growth across all categories.
Steady growth in commercial and industrial loans, with strong contributions from a number of markets and
teams.
Commercial real estate loan growth led by investment properties, including multi-family, hotel and shopping
centers, which grew a combined $121.2 million, partially offset by declines in office and warehouse.
Continued positive trends in the consumer category, driven by lending partnerships, up $211.9 million, and by
mortgage and HELOC growth, up $42.1 million and $44.5 million, respectively.

Deposits**

(dollars in millions)

Linked
Quarter
Change

Linked
Quarter %
Change*

2Q18

Year/Year
Change

Year/Year
% Change

2Q19

1Q19

8,577.6 $

8,440.5 $

137.1

Interest-bearing DDA

4,847.2

4,911.2

(64.0)

(5.2)

4,060.3

786.9

19.4

Money market

8,952.9

8,912.5

40.3

1.8

7,388.2

1,564.7

21.2

Non-interest-bearing DDA

$

Savings

6.5 % $

6,820.0 $

1,757.6

25.8 %

891.2

903.8

(12.6)

(5.6)

822.6

68.6

8.3

Public funds

4,351.3

4,630.0

(278.7)

(24.1)

2,224.6

2,126.7

95.6

Time deposits

7,343.0

7,568.1

(225.1)

(11.9)

3,275.9

4,067.0

124.1

Brokered deposits

3,003.5

2,709.0

294.5

43.6

1,851.0

1,152.5

62.3

Total deposits
*
**

•

$ 37,966.7 $ 38,075.2 $

(108.5)

(1.1 )% $ 26,442.7 $ 11,524.0

43.6 %

Annualized
Amounts may not total due to rounding

Total deposits ended the quarter at $37.97 billion, down $108.5 million or 1.1% annualized from first quarter
2019.

 •

•
•

•

Managed deposit cost and mix during the quarter, with growth in core transaction deposits of $100.8 million
and a lower composition of public funds and CDs. Core transaction deposits consist of non-interest bearing,
NOW/savings, and money market deposits excluding public funds.
The decline in public funds and CDs was partially offset by growth in brokered deposits of $294.5 million,
which replaced maturing CDs at shorter durations and lower rates.
On an average basis, non-interest bearing demand deposit accounts grew $249.9 million, or 11.1% annualized
over the first quarter. Excluding the impact of public funds deposit runoff, non-interest bearing demand deposits
increased $312.4 million from the previous quarter.
The loan to deposit ratio was 95.2%, up from 93.6% in the prior quarter.

Income Statement Summary**
(in thousands, except per share
data)
Net interest income

2Q19

1Q19

$ 397,262 $ 397,175 $

Linked
Quarter
Change

Linked
Quarter %
Change

87

nm

2Q18

Year/Year
Change

$ 284,577 $ 112,685

Year/Year
% Change
39.6 %

Non-interest income

89,807

79,378

10,429

13.1 %

73,387

16,420

22.4

Non-interest expense

264,126

292,410

(28,284)

(9.7)

204,057

60,069

29.4

12,119

23,569

(11,450)

(48.6)

11,790

Provision expense
Income before taxes

$ 210,824 $ 160,574 $

Income tax expense
Preferred stock dividends
Net income available to
common shareholders
Weighted average common
shares outstanding, diluted
Diluted earnings per share

68,707

48.3 %

35.3

30,936

23,704

76.6

2,559

591

23.1

40,388

14,252

3,150

3,150

—

159,077

162,760

2.8

31.3 % $ 142,117 $

54,640

$ 153,034 $ 117,036 $

329

50,250

nm

35,998

30.8 % $ 108,622 $

44,412

40.9 %

(3,683)

(2.3)

39,938

33.5

119,139

$

0.96 $

0.72 $

0.24

33.8 % $

0.91 $

0.05

5.5 %

Adjusted diluted earnings per
share
$

1.00 $

0.98 $

0.02

1.5 % $

0.92 $

0.08

8.4 %

**

Amounts may not total due to rounding
nm - not meaningful

Core Performance
•
•
•

•

•

Total revenues were $487.9 million in the second quarter, up $10.7 million or 2.2% from the previous quarter.
Net interest income was flat compared to the prior quarter.
Net interest margin was 3.69%, down 9 basis points from the previous quarter; includes $21.0 million or 21
basis points of purchase accounting adjustments (PAA) compared to $18.8 million or 19 basis points in first
quarter.
◦ The sequential decrease in net interest margin was driven by the declining rate environment and full quarter
effect of subordinated debt that was issued in the first quarter.
◦ Excluding the impact of PAA, earning asset yields declined 3 basis points and the effective cost of funds
increased 8 basis points.
Non-interest income increased $10.4 million or 13.1% from the prior quarter and $16.4 million or 22.4%
compared to second quarter 2018.
◦ The sequential increase was primarily attributable to a $3.5 million, or 70.9%, increase in capital markets
income and a $2.8 million, or 56.4%, increase in mortgage banking income.
Non-interest expense declined $28.3 million or 9.7% due to lower merger-related expenses, and adjusted noninterest expense increased $14.1 million or 5.8% from the prior quarter.
◦ The increase in adjusted expenses resulted mainly from higher producer commissions, increased servicing
fees related to growth in our lending partnership portfolio, and higher consulting fees tied to various
business and technology initiatives.

 ◦
•
•

Employment taxes were seasonally lower by $3.3 million.
Provision expense was $12.1 million, an $11.5 million decrease from the previous quarter, primarily due to
lower charge-off activity.
The effective tax rate was 25.9% for the quarter.

Capital Ratios
Common equity Tier 1 capital (CET1) ratio

2Q18
10.12 %

10.09

(1)

10.01

11.25

Total risk-based capital ratio

12.11

(1)

12.06

13.08

8.92

(1)

8.81

10.03

8.30

8.77

Tangible common equity
(2)

1Q19
9.52 %

Tier 1 capital ratio
Tier 1 leverage ratio
(1)

2Q19
9.61 % (1)

ratio(2)

8.56

Ratios are preliminary
Non-GAAP measure; see applicable reconciliation

Capital
•
•

•

Capital ratios remained strong and all increased slightly during the quarter.
During the second quarter 2019, Synovus announced an increase in the share repurchase authorization from
$400 million to $725 million, and completed repurchases of $25.0 million.
◦ Year-to-date share repurchases total $345.0 million and share count has declined by 8.0% since January 1,
2019.
During the second quarter 2019, Synovus announced and priced a public offering of $350 million of Fixed-Rate
Reset Non-Cumulative Perpetual Preferred Stock, Series E. This transaction closed on July 1 and is not
included in second quarter results.

Second Quarter Earnings Conference Call
Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on July 16, 2019. The earnings call will
be accompanied by a slide presentation. Shareholders and other interested parties may listen to this conference call
via simultaneous Internet broadcast. For a link to the webcast, go to investor.synovus.com/event. The replay will be
archived for 12 months and will be available 30-45 minutes after the call.
Synovus Financial Corp. is a financial services company based in Columbus, Georgia, with approximately $47
billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services through 297
branches in Georgia, Alabama, South Carolina, Florida, and Tennessee. Synovus Bank, a wholly owned subsidiary
of Synovus, was named one of American Banker’s “Best Banks to Work For” in 2018 and has been recognized as
one of the country's “Most Reputable Banks” by American Banker and the Reputation Institute. Synovus is on the
web at synovus.com, and on Twitter, Facebook, LinkedIn, and Instagram.

Forward-Looking Statements
This press release and certain of our other filings with the Securities and Exchange Commission contain statements
that constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All
statements other than statements of historical fact are forward-looking statements. You can identify these forwardlooking statements through Synovus’ use of words such as “believes,” “anticipates,” “expects,” “may,” “will,”
“assumes,” “should,” “predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,”
“potential” and other similar words and expressions of the future or otherwise regarding the outlook for Synovus’
future business and financial performance and/or the performance of the banking industry and economy in general.

 These forward-looking statements include, among others, our expectations regarding deposit growth, loan growth
and the net interest margin; expectations on our growth strategy, strategic transactions (including the FCB
transaction), expense initiatives, capital management and future profitability; expectations on credit trends and key
credit metrics; and the assumptions underlying our expectations. Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance and involve known and unknown risks and
uncertainties which may cause the actual results, performance or achievements of Synovus to be materially different
from the future results, performance or achievements expressed or implied by such forward-looking statements.
Forward-looking statements are based on the information known to, and current beliefs and expectations of,
Synovus’ management and are subject to significant risks and uncertainties. Actual results may differ materially
from those contemplated by such forward-looking statements. A number of factors could cause actual results to
differ materially from those contemplated by the forward-looking statements in this press release. Many of these
factors are beyond Synovus’ ability to control or predict.
These forward-looking statements are based upon information presently known to Synovus’ management and are
inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including,
without limitation, the risks and other factors set forth in Synovus’ filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for the year ended December 31, 2018, under the captions
“Cautionary Notice Regarding Forward-Looking Statements” and “Risk Factors” and in Synovus’ quarterly reports
on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable;
however, undue reliance should not be placed on any forward-looking statements, which are based on current
expectations and speak only as of the date that they are made. We do not assume any obligation to update any
forward-looking statements as a result of new information, future developments or otherwise, except as otherwise
may be required by law.

 Non-GAAP Financial Measures
The measures entitled adjusted non-interest income; adjusted non-interest expense; adjusted total revenues; adjusted
tangible efficiency ratio; adjusted net income available to common shareholders; adjusted earnings per diluted
share; adjusted return on average assets; adjusted return on average common equity; return on average tangible
common equity; adjusted return on average tangible common equity; tangible common equity ratio; and common
equity Tier 1 capital (CET1) ratio (fully phased-in) are not measures recognized under GAAP and therefore are
considered non-GAAP financial measures. The most comparable GAAP measures to these measures are total noninterest income; total non-interest expense; total revenues; efficiency ratio-FTE; net income available to common
shareholders; earnings per diluted common share; return on average assets; return on average common equity; the
ratio of total shareholders' equity to total assets; and the CET1 capital ratio, respectively.
Management believes that these non-GAAP financial measures provide meaningful additional information about
Synovus to assist management and investors in evaluating Synovus’ operating results, financial strength, the
performance of its business, and the strength of its capital position. However, these non-GAAP financial measures
have inherent limitations as analytical tools and should not be considered in isolation or as a substitute for analyses
of operating results or capital position as reported under GAAP. The non-GAAP financial measures should be
considered as additional views of the way our financial measures are affected by significant items and other factors,
and since they are not required to be uniformly applied, they may not be comparable to other similarly titled
measures at other companies. Adjusted total revenues and adjusted non-interest income are measures used by
management to evaluate total revenues and non-interest income exclusive of net investment securities gains (losses)
and changes in the fair value of private equity investments, net. Adjusted non-interest expense and the adjusted
tangible efficiency ratio are measures utilized by management to measure the success of expense management
initiatives focused on reducing recurring controllable operating costs. Adjusted net income available to common
shareholders, adjusted earnings per diluted share, adjusted return on average assets, and adjusted return on average
common equity are measures used by management to evaluate operating results exclusive of items that are not
indicative of ongoing operations and impact period-to-period comparisons. Return on average tangible common
equity and adjusted return on average tangible common equity are measures used by management to compare
Synovus’ performance with other financial institutions because it calculates the return available to common
shareholders without the impact of intangible assets and their related amortization, thereby allowing management to
evaluate the performance of the business consistently. The tangible common equity ratio and common equity Tier 1
capital (CET1) ratio (fully phased-in) are used by management and bank regulators to assess the strength of our
capital position. The computations of these measures are set forth in the tables below.

 Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)

2Q19

1Q19

2Q18

Adjusted non-interest income
Total non-interest income

$

89,807

$

79,378

$

73,387

Add/subtract: Investment securities losses (gains), net
Subtract/add: (Increase) decrease in fair value of private equity investments,
net
Adjusted non-interest income
$

1,845

(75)

1,296

(1,455)

(858)

37

90,197

$

78,445

$

74,720

264,126

$

292,410

$

204,057

Adjusted non-interest expense
Total non-interest expense

$

Subtract: Merger-related expense

(7,401)

Add: Litigation settlement/contingency expense
Subtract: Restructuring charges, net
Subtract: Fair value adjustment to Visa derivative
Adjusted non-interest expense

(49,738)

—

—

(18)

(19)

—
1,400
(103)

$

—

$

—

$

$

256,707

$

242,653

$

203,026

(2,328)

$

256,707

$

242,653

$

203,026

$

254,297

$

239,261

$

202,734

$

397,262

$

397,175

$

284,577

Adjusted total revenues and adjusted tangible efficiency ratio
Adjusted non-interest expense
Subtract: Amortization of intangibles
Adjusted tangible non-interest expense
Net interest income

(2,410)

(3,392)

(292)

Add: Tax equivalent adjustment

811

630

120

Add: Total non-interest income

89,807

79,378

73,387

487,880

477,183

358,084

Total FTE revenues
Add/subtract: Investment securities losses (gains), net
Subtract/add: (Increase) decrease in fair value of private equity investments,
net
Adjusted total revenues
Efficiency ratio-FTE
Adjusted tangible efficiency ratio

$

1,845

(75)

1,296

(1,455)

(858)

37

488,270
54.14 %
52.08

$

476,250
61.28 %
50.24

$

359,417
56.99 %
56.41

 Reconciliation of Non-GAAP Financial Measures, continued
(in thousands, except per share data)

2Q19

1Q19

2Q18

Adjusted Return on Average Assets
Net income

$

Subtract: Income tax expense, net related to State Tax Reform
Add: Merger-related expense

156,184

$

120,186

—

—

$

111,181
(608)

7,401

49,738

Subtract: Litigation settlement/contingency expense

—

—

Add: Restructuring charges, net

18

19

103

Add: Fair value adjustment to Visa derivative

—

—

2,328

1,845

(75)

1,296

Subtract/add: (Increase) decrease in fair value of private equity investments,
net

(1,455)

(858)

37

Subtract: Tax effect of adjustments

(1,951)

(5,705)

Add/subtract: Investment securities losses (gains), net

—
(1,400)

(554)

Adjusted net income

$

162,042

$

163,305

$

112,383

Net income annualized

$

626,452

$

487,421

$

445,946

Adjusted net income annualized

$

649,949

$

662,293

$

450,767

Total average assets

$ 46,679,769

Return on average assets
Adjusted return on average assets

$ 45,794,621

$ 31,502,758

1.34 %

1.06 %

1.42 %

1.39

1.45

1.43

Adjusted net income available to common shareholders and adjusted
net income per common share, diluted
Net income available to common shareholders

$

Subtract: Income tax expense, net related to State Tax Reform
Add: Merger-related expense

153,034

$

117,036

—

—

$

108,622
(608)

7,401

49,738

Subtract: Litigation settlement/contingency expense

—

—

Add: Restructuring charges, net

18

19

103

Add: Fair value adjustment to Visa derivative

—

—

2,328

1,845

(75)

1,296

(1,455)

(858)

37

(1,951)

(5,705)

Add/subtract: Investment securities losses (gains), net
Subtract/add: (Increase) decrease in fair value of private equity investments,
net
Subtract: Tax effect of adjustments
Adjusted net income available to common shareholders

$

Weighted average common shares outstanding, diluted
Net income per common share, diluted
Adjusted net income per common share, diluted

158,892

$

159,077
$

0.96
1.00

160,155

—
(1,400)

(554)
$

162,760
$

0.72
0.98

109,824
119,139

$

0.91
0.92

 Reconciliation of Non-GAAP Financial Measures, continued
(dollars in thousands)

2Q19

Adjusted return on average common equity, return on average tangible
common equity, and adjusted return on average tangible common
equity
Net income available to common shareholders
$

153,034

Subtract: Income tax expense, net related to State Tax Reform

1Q19

$

2Q18

117,036

$

108,622

—

—

7,401

49,738

Subtract: Litigation settlement/contingency expense

—

—

Add: Restructuring charges, net

18

19

103

Add: Fair value adjustment to Visa derivative

—

—

2,328

Add: Merger-related expense

(608)
—
(1,400)

Add/subtract: Investment securities losses (gains), net
Subtract/add: (Increase) decrease in fair value of private equity investments,
net

1,845

(75)

1,296

(1,455)

(858)

37

Subtract: Tax effect of adjustments

(1,951)

(5,705)

(554)

Adjusted net income available to common shareholders

$

158,892

$

160,155

$

109,824

Adjusted net income available to common shareholders annualized

$

637,314

$

649,518

$

440,502

Add: Amortization of intangibles

7,250

10,317

896

Adjusted net income available to common shareholders excluding
amortization of intangibles annualized

$

644,564

$

659,835

$

441,398

Net income available to common shareholders annualized

$

613,818

$

474,646

$

435,682

Add: Amortization of intangibles

7,250

Net income available to common shareholders excluding amortization of
intangibles annualized

$

Total average shareholders' equity less preferred stock

$ 4,416,705

Subtract: Goodwill
Subtract: Other intangible assets, net
Total average tangible shareholders' equity less preferred stock
Return on average common equity

621,068

10,317
$

484,963

$ 4,321,561

896
$

436,578

$ 2,831,368

(487,601)

(480,215)

(57,315)

(69,853)

(75,191)

(10,555)

$ 3,859,251

$ 3,766,155

$ 2,763,498

13.90 %

10.98 %

15.39 %

Adjusted return on average common equity

14.43

15.03

15.56

Return on average tangible common equity

16.09

12.88

15.80

Adjusted return on average tangible common equity

16.70

17.52

15.97

 Reconciliation of Non-GAAP Financial Measures, continued
June 30,
2019

(dollars in thousands)

March 31,
2019

June 30,
2018

Tangible Common Equity Ratio
Total assets

$

Subtract: Goodwill
Subtract: Other intangible assets, net

47,318,203

$

46,604,344

$

31,740,305

(492,390)

(480,215)

(57,315)

(61,473)

(74,683)

(10,458)

Tangible assets

$

46,764,340

$

46,049,446

$

31,672,532

Total shareholders’ equity

$

4,753,816

$

4,572,072

$

3,167,694

Subtract: Goodwill
Subtract: Other intangible assets, net
Subtract: Preferred Stock, no par value
Tangible common equity

$

Total shareholders’ equity to total assets ratio
Tangible common equity ratio

(492,390)

(480,215)

(57,315)

(61,473)

(74,683)

(10,458)

(195,140)

(195,140)

(321,118)

4,004,813
10.05 %
8.56

Reconciliation of Non-GAAP Financial Measures, continued
June 30,
(dollars in thousands)

2019

CET1 capital ratio (fully phased-in)
CET1 capital

$

3,899,532

Total risk-weighted assets

$

40,564,781

Total risk-weighted assets (fully phased-in)

$

40,633,187

CET1 capital ratio

9.61 %

CET1 capital ratio (fully phased-in)

9.60

$

3,822,034
9.81 %
8.30

$

2,778,803
9.98 %
8.77

 Synovus
INCOME STATEMENT DATA
(Unaudited)
(Dollars in thousands, except per share data)

Six Months Ended
June 30,
2019

Interest income
Interest expense

$

2018

1,020,970
226,532

$

% Change

642,968
84,107

58.8 %
169.3

Net interest income
Provision for loan losses

794,438
35,688

558,861
24,566

42.2
45.3

Net interest income after provision for loan losses

758,750

534,295

42.0

Non-interest income:
Service charges on deposit accounts
Fiduciary and asset management fees
Card fees
Brokerage revenue
Capital markets income
Mortgage banking income
Income from bank-owned life insurance
Investment securities losses, net
Increase/(decrease) in fair value of private equity investments, net
Other non-interest income

42,853
28,057
22,037
19,431
13,291
12,962
10,466
(1,771)
2,313
19,546

39,938
27,419
21,032
17,085
2,086
9,887
7,949
(1,296)
(3,093)
19,426

7.3
2.3
4.8
13.7
nm
31.1
31.7
nm
nm
0.6

Total non-interest income

169,185

140,433

20.5

Non-interest expense:
Salaries and other personnel expense
Net occupancy and equipment expense
Third-party processing expense
Professional fees
FDIC insurance and other regulatory fees
Advertising expense
Merger-related expense
Amortization of intangibles
Other operating expenses

282,436
78,245
36,875
15,660
14,629
11,045
57,140
5,802
54,705

225,583
64,134
29,012
11,789
13,335
10,312
—
583
44,486

25.2
22.0
27.1
32.8
9.7
7.1

Total non-interest expense

556,537

399,234

39.4

Income before income taxes
Income tax expense

371,398
95,028

275,494
61,146

34.8
55.4

Net income

276,370

214,348

28.9

6,300

5,119

23.1

Less: Preferred stock dividends
Net income available to common shareholders

$

270,070

$

nm
nm
23.0

209,229

29.1 %

Net income per common share, basic

1.70

1.77

(3.9 )%

Net income per common share, diluted

1.68

1.75

(4.4)

Cash dividends declared per common share

0.60

0.50

20.0

1.21%
12.65

1.38
15.01

(17)bps
(236)

118,531
119,229

34.3 %
35.0

Return on average assets*
Return on average common equity*
Weighted average common shares outstanding, basic
Weighted average common shares outstanding, diluted
nm - not meaningful
bps - basis points
* - ratios are annualized

159,148
160,908

 Synovus
INCOME STATEMENT DATA
(Unaudited)
(In thousands, except per share data)
Second
Quarter

Second
Quarter

2018

2019
First
Quarter

Fourth
Quarter

Third
Quarter

Second
Quarter

'19 vs '18
% Change

$ 516,131
118,869

504,839
107,664

357,394
59,461

343,942
52,323

329,834
45,257

Net interest income
Provision for loan losses

397,262
12,119

397,175
23,569

297,933
12,148

291,619
14,982

284,577
11,790

39.6
2.8

Net interest income after provision for loan losses

385,143

373,606

285,785

276,637

272,787

41.2

20,859
13,578
10,877
9,379
4,906
5,054
5,290
75

20,320
13,805
10,862
9,241
1,693
3,781
3,682
—

20,582
13,462
10,608
9,041
836
5,290
3,771
—

Interest income
Interest expense

Non-interest income:
Service charges on deposit accounts
Fiduciary and asset management fees
Card fees
Brokerage revenue
Capital markets income
Mortgage banking income
Income from bank-owned life insurance
Investment securities (losses)/gains, net
Increase/(decrease) in fair value of private equity
investments, net
Other non-interest income

21,994
14,478
11,161
10,052
8,385
7,907
5,176
(1,845)

434

10.0
3.5
3.0
15.4
nm
63.4
38.7
nm

1,455

858

11,044

8,502

6,691

7,644

11,506

(4.0)

89,807

79,378

67,991

71,668

73,387

22.4

Non-interest expense:
Salaries and other personnel expense
Net occupancy and equipment expense
Third-party processing expense
Professional Fees
FDIC insurance and other regulatory fees
Advertising expense
Earnout liability adjustments
Merger-related expense
Amortization of intangibles
Other operating expenses

143,009
39,851
19,118
9,312
7,867
5,923
—
7,401
2,410
29,235

139,427
38,394
17,758
6,348
6,761
5,123
—
49,738
3,392
25,469

113,496
34,260
14,803
8,650
4,728
6,834
—
3,381
292
23,478

114,341
32,088
14,810
6,298
6,430
3,735
11,652
6,684
292
23,967

111,863
32,654
15,067
6,284
6,543
5,220
—
—
292
26,134

27.8
22.0
26.9
48.2
20.2
13.5

Total non-interest expense

264,126

292,410

209,922

220,297

204,057

29.4

Income before income taxes
Income tax expense

210,824
54,640

160,574
40,388

143,854
38,784

128,008
18,949

142,117
30,936

48.3
76.6

Net income

156,184

120,186

105,070

109,059

111,181

40.5

Total non-interest income

(2,084)

19,999
13,983
10,833
8,709
1,118
4,839
3,733
(1,296)

56.5 %
162.7

(37)

nm

nm
nm
nm
11.9

3,150

3,150

3,151

9,729

2,559

23.1

Net income available to common shareholders

$ 153,034

117,036

101,919

99,330

108,622

40.9

Net income per common share, basic

$

Less: Preferred stock dividends and redemption charge

0.97

0.73

0.88

0.85

0.92

6.0 %

Net income per common share, diluted

0.96

0.72

0.87

0.84

0.91

5.5

Cash dividends declared per common share

0.30

0.30

0.25

0.25

0.25

20.0

1.35%
14.32

1.06
10.98

1.29
14.25

1.36
13.95

1.42
15.39

(7)bps
(107)

160,927
162,760

116,303
116,986

117,241
118,095

118,397
119,139

32.9 %
33.5

Return on average assets *
Return on average common equity *
Weighted average common shares outstanding, basic
Weighted average common shares outstanding, diluted
nm - not meaningful
bps - basis points
* - ratios are annualized

157,389
159,077

 Synovus
BALANCE SHEET DATA

June 30, 2019

December 31, 2018

June 30, 2018

(Unaudited)
(In thousands, except share data)
ASSETS
Cash and due from banks

$

Interest-bearing funds with Federal Reserve Bank
Interest earning deposits with banks
Federal funds sold and securities purchased under resale agreements
Cash and cash equivalents
Investment securities available for sale, at fair value
Mortgage loans held for sale, at fair value
Loans
Allowance for loan losses

549,616

$

$

404,080

641,476

613,082

20,271

19,841

33,754

49,946

13,821

40,872

1,151,321

1,143,564

1,091,788

7,007,012

3,991,632

3,929,962

81,855

37,129

53,673

36,138,561

25,946,573

25,134,056

(250,555)

(257,376)

Loans, net

468,426

531,488

(251,725)

35,881,185

25,696,018

24,882,331

Cash surrender value of bank-owned life insurance

766,287

554,134

547,261

Premises and equipment, net

490,644

434,307

428,633

Goodwill

492,390

57,315

57,315

61,473

9,875

10,458

1,386,036

745,218

738,884

Other intangible assets
Other assets
Total assets

$

47,318,203

$

9,205,066

$

32,669,192

$

7,650,967

$

31,740,305

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest-bearing deposits

$

7,630,491

Interest-bearing deposits

28,761,656

19,069,355

18,812,197

Total deposits

37,966,722

26,720,322

26,442,688

Federal funds purchased and securities sold under repurchase agreements

273,481

237,692

207,580

Other short-term borrowings

1,330,000

650,000

—

Long-term debt

2,306,072

1,657,157

1,656,647

Other liabilities

688,112

270,419

265,696

42,564,387

29,535,590

28,572,611

Series C Preferred Stock - no par value; 5,200,000 outstanding at June 30, 2018

—

—

125,980

Series D Preferred Stock - no par value. Authorized 100,000,000 shares;
8,000,000 shares issued and outstanding at June 30, 2019, December 31, 2018,
and June 30, 2018

195,140

195,140

195,138

Total liabilities
Shareholders' equity:

Common stock - $1.00 par value. Authorized 342,857,143 shares; 166,079,543
issued at June 30, 2019, 143,300,449 issued at December 31, 2018, and
143,077,973 issued at June 30, 2018; 156,872,026 outstanding at June 30, 2019,
115,865,510 outstanding at December 31, 2018, and 117,841,369 outstanding at
June 30, 2018
Additional paid-in capital
Treasury stock, at cost – 9,207,517 shares at June 30, 2019, 27,434,939 shares
at December 31, 2018, and 25,236,604 shares at June 30, 2018

143,300

143,078

3,060,561

3,045,014

(344,901)

Accumulated other comprehensive income (loss), net

49,289

Retained earnings
Total shareholders’ equity
Total liabilities and shareholders' equity

166,080
3,801,748

$

(1,014,746)

(916,484)

(94,420)

(125,720)

886,460

843,767

700,688

4,753,816

3,133,602

3,167,694

47,318,203

$

32,669,192

$

31,740,305

 Synovus
AVERAGE BALANCES AND YIELDS/RATES (1)
(Unaudited)
(Dollars in thousands)

2018

2019

Interest Earning Assets
Taxable investment securities (2)
Yield
Tax-exempt investment securities(2)(4)
Yield (taxable equivalent)
Trading account assets(5)
Yield
Commercial loans(3)(4)
Yield
Consumer loans(3)
Yield
Allowance for loan losses
Loans, net(3)
Yield
Mortgage loans held for sale
Yield
Federal funds sold, due from Federal Reserve
Bank, and other short-term investments
Yield
Federal Home Loan Bank and Federal Reserve
Bank Stock(5)
Yield
Total interest earning assets
Yield
Interest-Bearing Liabilities
Interest-bearing demand deposits
Rate
Money Market accounts
Rate
Savings deposits
Rate
Time deposits under $100,000
Rate
Time deposits over $100,000
Rate
Non-maturing brokered deposits
Rate
Brokered time deposits
Rate
Total interest-bearing deposits
Rate
Federal funds purchased and securities sold under
repurchase agreements
Rate
Other short-term borrowings
Rate
Long-term debt
Rate
Total interest-bearing liabilities
Rate
Non-interest-bearing demand deposits
Cost of funds
Net interest margin
Taxable equivalent adjustment

$
$
$
$
$
$
$
$
$

Second
Quarter

First
Quarter

Fourth
Quarter

Third
Quarter

Second
Quarter

6,953,278
3.04%
2,108
4.91%
4,853
1.83%
26,353,973
5.13%
9,423,427
5.17%
(259,284)
35,518,116
5.17%
70,497
4.27%

6,515,561
3.05
20,638
4.45
2,049
1.30
26,140,672
5.16
9,180,679
5.10
(252,815)
35,068,536
5.17
34,913
4.48

4,073,685
2.45
—
—
7,493
1.90
19,150,252
5.13
6,476,026
4.85
(251,098)
25,375,180
5.11
36,477
4.79

4,061,239
2.38
89
5.91
16,646
2.52
19,025,830
4.98
6,298,643
4.80
(251,684)
25,072,789
4.99
49,030
4.71

4,077,564
2.34
115
6.87
23,772
2.79
18,857,271
4.85
6,092,899
4.76
(257,966)
24,692,204
4.88
50,366
4.42

511,488
2.37%

679,477

641,832

544,704

724,537

2.45

2.20

1.90

1.77

$

234,949

211,408

162,369

163,568

165,845

$

3.29%
43,295,289

4.82
42,532,582

4.31
30,297,036

4.41
29,908,065

4.63
29,734,403

4.79%

4.80

4.69

4.58

4.47

6,335,953
0.71%
10,024,836
1.23%
904,183
0.05%
2,245,878
1.39%
6,331,665
1.70%
766,718
2.46%
1,985,589
2.28%
28,594,822
1.30%

6,393,304
0.68
10,244,556
1.18
901,059
0.06
2,238,568
1.24
6,211,067
1.60
937,629
2.60
1,845,819
2.13
28,772,002
1.24

4,692,804
0.41
8,050,732
0.89
815,588
0.04
1,242,811
1.16
2,478,649
1.67
349,480
2.46
1,275,276
2.03
18,905,340
0.96

4,701,204
0.38
7,936,621
0.72
824,935
0.03
1,205,987
0.99
2,273,582
1.46
358,277
2.10
1,414,700
1.94
18,715,306
0.83

5,001,826
0.35
7,791,107
0.55
829,800
0.03
1,161,890
0.82
2,021,084
1.22
262,976
1.94
1,659,941
1.85
18,728,624
0.70

233,076

194,370

230,504

207,655

0.22
517,456
2.58
1,983,910
3.33
31,506,444
1.38
9,054,949
1.07
3.78
630

0.18
112,228
2.51
1,657,022
3.06
20,868,960
1.12
8,014,761
0.81
3.92
181

0.25
146,794
2.12
1,656,743
2.87
20,749,347
0.99
7,672,006
0.73
3.89
136

0.35
3,024
2.84
1,852,094
2.66
20,791,397
0.87
7,539,451
0.64
3.86
120

$
$
$
$
$
$
$
$
$
$
$
$
$

$

300,168
0.20%
1,090,581
2.59%
2,114,819
3.53%
32,100,390
1.48%
9,304,839
1.15%
3.69%
811

(1)

Yields and rates are annualized.
(2)
Excludes net unrealized gains and losses.
(3)
Average loans are shown net of unearned income. Non-performing loans are included.
(4)

Reflects taxable-equivalent adjustments, using the statutory federal income tax rate of 21%, in adjusting interest on tax-exempt loans and investment securities
to a taxable-equivalent basis.

(5)

Included as a component of other assets on the consolidated balance sheet.

 Synovus
LOANS OUTSTANDING BY TYPE
(Unaudited)
(Dollars in thousands)

Total Loans
June 30, 2019

Loan Type
Commercial, Financial, and
Agricultural
Owner-Occupied
Total Commercial & Industrial

$

Total Originated
Loans
June 30, 2019

Total Acquired
Loans (1)
June 30, 2019

Total Loans (1)
March 31, 2019

Linked
Quarter
(2)

% Change

Total Loans

Year/Year

June 30, 2018

% Change

9,717,746

7,800,635

1,917,111

9,566,935

6,529,797
16,247,543

5,366,404
13,167,039

1,163,393
3,080,504

6,560,681
16,127,616

(1.9)
3.0

5,004,392
12,275,472

30.5
32.4

2,113,938
1,244,512
2,291,617
1,677,555
696,692
980,786
9,005,100

1,342,157
761,387
1,495,989
919,244
581,980
826,949
5,927,706

771,781
483,125
795,628
758,311
114,712
153,837
3,077,394

2,077,666
1,179,395
2,300,671
1,657,789
725,862
979,579
8,920,962

7.0
22.1
(1.6)
4.8
(16.1)
0.5
3.8

1,358,211
755,125
1,429,166
811,186
602,707
553,201
5,509,596

55.6
64.8
60.3
106.8
15.6
77.3
63.4

1-4 Family Construction
1-4 Family Investment Mortgage
Total 1-4 Family Properties

219,032
528,358
747,390

174,242
469,206
643,448

44,790
59,152
103,942

215,881
549,120
765,001

5.9
(15.2)
(9.2)

177,140
543,570
720,710

23.6
(2.8)
3.7

Commercial Development
Residential Development
Land Acquisition
Land and Development

138,840
218,850
238,267
595,957

65,111
126,827
172,750
364,688

73,729
92,023
65,517
231,269

147,516
215,814
219,146
582,476

(23.6)
5.6
35.0
9.3

61,375
100,246
252,244
413,865

126.2
118.3
(5.5)
44.0

10,348,447

6,935,842

3,412,605

10,268,439

3.1

6,644,171

55.8

5,407,762
1,650,745
258,283
2,249,337
9,566,127

3,194,027
1,587,854
258,283
2,237,406
7,277,570

2,213,735
62,891
—
11,931
2,288,557

5,365,635
1,606,227
252,762
2,037,477
9,262,101

3.1
11.1
8.8
41.7
13.2

2,750,935
1,453,855
238,424
1,793,916
6,237,130

96.6
13.5
8.3
25.4
53.4

Multi-Family
Hotels
Office Buildings
Shopping Centers
Warehouses
Other Investment Property
Total Investment Properties

Total Commercial Real Estate
Consumer Mortgages
Home Equity Lines
Credit Cards
Other Consumer Loans
Total Consumer
Unearned Income
Total
(1)
(2)

(23,556)
$

36,138,561

(23,556)
27,356,895

—
8,781,666

(23,655)
35,634,501

6.3 %

$

7,271,080

(1.7)
5.7 %

(22,717)
$

25,134,056

33.6 %

3.7
43.8 %

On 1/1/19 $9.29 B of loans (at fair value) were acquired from FCB. The amounts presented in these columns are net of paydowns and payoffs since acquisition date.
Percentage change is annualized.

NON-PERFORMING LOANS COMPOSITION(1)
(Unaudited)
(Dollars in thousands)

Loan Type
Commercial, Financial, and
Agricultural
Owner-Occupied
Total Commercial & Industrial

Total
Non-performing
Loans

Total Originated
Non-performing
Loans

Total Acquired
Non-performing
Loans(2)

Total
Non-performing
Loans(3)

Linked
Quarter

Total
Non-performing
Loans

Year/Year

June 30, 2019

June 30, 2019

June 30, 2019

March 31, 2019

% Change

June 30, 2018

% Change

$

72,934

68,573

4,361

85,917

(15.1)%

81,231

(10.2)%

13,465
86,399

11,557
80,130

1,908
6,269

13,813
99,730

(2.5)
(13.4)

6,076
87,307

121.6
(1.0)

—
—
300
671
—
7
978

—
—
186
613
—
—
799

—
—
114
58
—
7
179

1,503
7,346
221
676
—
—
9,746

nm
nm
35.7
(0.7)
nm
nm
(90.0)

176
—
670
412
21
459
1,738

nm
nm
(55.2)
62.9
nm
nm
(43.7)

1-4 Family Construction
1-4 Family Investment Mortgage
Total 1-4 Family Properties

208
1,637
1,845

208
1,410
1,618

—
227
227

445
1,522
1,967

(53.3)
7.6
(6.2)

—
3,247
3,247

nm
(49.6)
(43.2)

Commercial Development
Residential Development
Land Acquisition
Land and Development

—
1,253
1,482
2,735

—
1,253
1,482
2,735

—
—
—
—

46
1,569
1,035
2,650

nm
(20.1)
43.2
3.2

42
3,184
1,398
4,624

nm
(60.6)
6.0
(40.9)

Multi-Family
Hotels
Office Buildings
Shopping Centers
Warehouses
Other Investment Property
Total Investment Properties

Total Commercial Real Estate
Consumer Mortgages
Home Equity Lines
Other Consumer Loans
Total Consumer
Total

$

$

5,558

5,152

406

14,363

(61.3)

9,609

(42.2)

13,628
13,830
4,667
32,125

13,628
13,494
4,667
31,789

—
336
—
336

11,556
14,078
4,249
29,883

17.9
(1.8)
9.8
7.5

4,822
14,265
1,325
20,412

182.6
(3.0)
252.2
57.4

124,082

117,071

7,011

143,976

(13.8)%

$

(1) For purposes of this table, 2019 non-performing loans exclude acquired loans accounted for under ASC 310-30 that are currently accruing income.
(2) Represents loans acquired from FCB and designated as non-accrual, net of payments and dispositions since acquisition date
(3) March 31, 2019 total non-performing loans included $23.5 million of acquired non-performing loans, net of payments since acquisition date

117,328

5.8 %

 Synovus
CREDIT QUALITY DATA
(Unaudited)
(Dollars in thousands)
Second
Quarter

Second
Quarter

2018

2019
First
Quarter

Fourth
Quarter

Third
Quarter

Second
Quarter

'19 vs '18
% Change

(1)

Non-performing Loans
Impaired Loans Held for Sale (2)
Other Real Estate

124,083
631
14,848

143,976
12
11,329

106,733
1,506
6,220

108,425
12
8,542

117,328
2,733
6,288

5.8%
(76.9)
136.1

Non-performing Assets (1)

139,562

155,317

114,459

116,979

126,349

10.5

Allowance for loan losses

257,376

257,036

250,555

251,450

251,725

2.2

17,088
17,088
0.19
0.19

13,044
50,410
0.20
0.20

15,257
37,366
0.24
0.20

17,829
22,109
0.29
0.18

11,778
28,867
0.13%
0.16

Net Charge-Offs - Quarter
Net Charge-Offs - YTD
Net Charge-Offs / Average Loans - Quarter (3)
Net Charge-Offs / Average Loans - YTD (3)
Non-performing Loans / Loans (1)
Non-performing Assets / Loans, Impaired Loans Held
for Sale, & ORE (1)

0.34

0.40

0.41

0.42

0.47

0.39

0.44

0.44

0.46

0.50

Allowance / Loans

0.71

0.72

0.97

0.98

1.00

207.42

178.53

234.75

231.91

214.55

282.51

291.62

297.68

288.21

262.99

Allowance / Non-performing Loans

(1)

Allowance / Non-performing Loans excluding
impaired and acquired loans with no reserve
(1)

(1)

$

5,851
0.02%

4,486
0.01

3,798
0.01

4,856
0.02

3,222
0.01

81.6

Total Past Due Loans and Still Accruing (1)
As a Percentage of Loans Outstanding

$

80,792
0.22%

88,135
0.25

56,927
0.22

78,323
0.31

55,614
0.22

45.3

Accruing Troubled Debt Restructurings (TDRs)

$

112,205

115,588

114,740

125,310

0.8

Past Due Loans over 90 days and Still Accruing
As a Percentage of Loans Outstanding

126,369

(1)

For purposes of this table, 2019 non-performing loans and past due loans over 90 days exclude acquired loans accounted for under ASC 310-30 that are
currently accruing income.
(2)
Represent impaired loans that have been specifically identified to be sold. Impaired loans held for sale are carried at the lower of cost or fair value, less costs
to sell, based primarily on estimated sales proceeds net of selling costs.
(3)

Ratio is annualized.

SELECTED CAPITAL INFORMATION (1)
(Unaudited)
(Dollars in thousands)
June 30, 2019
Tier 1 Capital
Total Risk-Based Capital
Common Equity Tier 1 Capital Ratio
Common Equity Tier 1 Ratio (fully phased-in) (5)
Tier 1 Capital Ratio
Total Risk-Based Capital Ratio
Tier 1 Leverage Ratio
Common Equity as a Percentage of Total Assets (2)
Tangible Common Equity Ratio (3) (5)
Book Value Per Common Share (4)
Tangible Book Value Per Common Share (3)

December 31,
2018

$ 4,094,672
4,913,043
9.61%
9.60
10.09
12.11
8.92
9.63
8.56
$
29.06
25.53

3,090,416
3,601,376
9.95
9.92
10.61
12.37
9.60
8.99
8.81
25.36
24.78

June 30,
2018
3,156,805
3,668,904
10.12
10.06
11.25
13.08
10.03
8.97
8.77
24.16
23.58

(1)

Current quarter regulatory capital information is preliminary.

(2)

Common equity consists of Total Shareholders' Equity less Preferred Stock.

(3)

Excludes the carrying value of goodwill and other intangible assets from common equity and total assets.

(4)

Book Value Per Common Share consists of Total Shareholders' Equity less Preferred Stock divided by total common shares outstanding.

(5)

See "Non-GAAP Financial Measures" of this report for applicable reconciliation.