- News Releases
- Synovus Announces Changes to Board of Directors
- Synovus Announces REACH Awards
- Synovus Presents Annual Awards
- Synovus Receives 20 Customer Service Excellence Awards in Middle and Small Business Banking
- Kamensky Named Synovus Executive Vice President and General Counsel
- Synovus Reports Earnings for Fourth Quarter of 2013
- Dunlevie Named Managing Director of Synovus Family Asset Management
- Synovus Announces Quarterly Stock Dividend
|Synovus Reports 9.1% Increase in Net Income for First Quarter 2007
|TSYS Reports 13.7% Increase in Net Income|
“We are proud of our performance in the first quarter of 2007 at both the Synovus Financial Services segment, in a challenging environment, and
Return on assets for the quarter was 1.86% and return on equity was 15.94% for the first quarter 2007, compared to 1.96% and 17.88%, respectively, in the same period last year. Shareholders’ equity at
Financial Services’ net income was up 7.1 % over the first quarter last year. Net interest income grew 8.4% over the first quarter last year as total loans grew 12.5%, while loan growth excluding acquisitions was 11.0%. The net interest margin for the quarter was 4.10%, compared to 4.20% last quarter and 4.32% in the first quarter of last year. The linked quarter margin decline exceeded our expectations, primarily due to demand for, as well as continued growth in, higher cost deposit products and the impact of the inverted yield curve on fixed rate loan pricing. Total core deposit growth (excludes brokered time deposits) was 12.3% and fundamental core deposit growth (excluding acquisitions) was 10.8% over first quarter of 2006.
The ratio of nonperforming assets to loans and other real estate was 0.68%, up from 0.50% last quarter and 0.45% in the first quarter last year. The net charge-off ratio was 0.13% compared to 0.39% last quarter and 0.27% in the first quarter of last year. Past due loans improved from the previous quarter. The allowance for loan losses was 1.30% of loans, and the provision for loan losses covered net charge-offs by 2.52x for the quarter.
Financial Services’ non-interest income was up 5.3% over the first quarter last year with increases in mortgage revenue of 23.0%, bankcard fees of 12.6%, fiduciary and asset management fees – which include trust, financial planning and asset management fees – of 4.7%, and brokerage and investment banking revenue of 7.2%. Financial Services’ non-interest expense was up 8.9% (5.9% excluding acquisitions) compared to the first quarter of 2006. Branch expansion of 22 additions since the first quarter of 2006 has driven most of the non-interest expense increase.
Anthony concluded, “Synovus’ financial results in the first quarter make us confident in our expectations for 2007 earnings per share to be in the range of $1.96 to $1.98. As we look into 2007, the most important initiative is the acceleration of our commercial strategy. Our focus for this initiative, which we began implementing in the second half of 2006, is a targeted sales development approach to the middle market businesses in our footprint with specialty products such as corporate cash management, asset–based loans, and capital markets products. Our retail banking initiative, which we implemented in 2005, continues to exceed our expectations by expanding core retail deposit growth, home equity loan growth, and fee income from retail product sales this year. With our very dedicated and highly motivated team members and our strong balance sheet, we believe we are in position to achieve above-peer earnings performance throughout the year and beyond.”
Synovus’ 2007 earnings outlook is based on the following assumptions:
· Stable short term interest rates.
· Annual net interest margin near the first quarter 2007 level.
· Loan growth of approximately 10%.
· A stable credit environment.
Synovus will host an earnings highlights conference call at , on
Synovus (NYSE: “
This press release contains statements that constitute “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements regarding Synovus’ expected growth in earnings per share for 2007, Synovus’ belief that it is in a position to achieve above-peer earnings performance, and the assumptions underlying such statements, including, with respect to Synovus’ expected increase in earnings per share for 2007, stable short-term interest rates; a stable credit environment; an annual net interest margin near the first quarter 2007 level; loan growth of approximately 10%; and