- 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 Results for Fourth Quarter of 2010
|Aggressive Asset Dispositions Drive Non-performing Assets to Lowest Level in Two Years|
Fourth Quarter Business Results
Continued Improvement in Credit Trends
· Dispositions of
· Total non-performing assets declined for the third consecutive quarter to $1.28 billion at
· New non-performing loan inflows were $295 million in the fourth quarter of 2010, down 30 percent from the previous quarter and down 55 percent from the same quarter a year ago. This level of non-performing loan inflows is the lowest level in over two years.
· Total delinquencies (loans 30-89 days past due and 90 days or more past due) declined to 0.82% of loans at
· Net charge-offs were $385 million in the quarter compared to $237 million in the third quarter of 2010, impacted by significantly higher asset disposition activity and an increase in transfers to loans held-for-sale.
· Total credit costs declined for the sixth consecutive quarter to $282 million for the fourth quarter of 2010, from $301 million in the third quarter of 2010.
· The allowance for loan losses coverage of non-performing loans (excluding non-performing loans for which the expected loss has been charged-off) increased to 193 percent at
Strong Capital Position
· Tier 1 Capital Ratio – 12.79%
· Tier 1 Common Equity Ratio – 8.63%
· Tangible Common Equity to Tangible Assets Ratio – 6.73%
· Total Risk-based Capital Ratio – 16.51%
· Pre-tax, pre-credit costs income was $117.2 million for the fourth quarter of 2010, compared to $123.5 million in the third quarter of 2010.
o Net interest income declined $3.5 million due to lower loan balances, while the net interest margin expanded 4 basis points to 3.37% benefiting from a 10 basis point decrease in the effective cost of funds.
o Non-interest income decreased by $1.9 million, due primarily to lower earnings on private equity investments and NSF fees, partially offset by strong growth in brokerage revenue.
Balance Sheet Fundamentals
· The loan portfolio shrinkage from net pay downs continued to moderate during the fourth quarter. The decline in loans outstanding from net pay downs was approximately $80 million for the quarter, compared to approximately $320 million for the third quarter of 2010. Net pay downs exclude the impact of loan sales, transfers to loans held-for-sale, charge-offs, and foreclosures. The reported sequential quarter decrease in loans outstanding was $995 million.
· Total core deposits, excluding time deposits, grew 6.1% (annualized) in the fourth quarter over the third quarter of 2010, and 4.3% over the fourth quarter of 2009.
· Total deposits declined $736 million from the prior quarter to $24.5 billion. $397 million of the decline was in brokered money market and brokered time deposit accounts. Total core deposits declined $339 million linked quarter to $21.3 billion, driven by a $571 million decline in time deposits.
“During the quarter, we disposed of $573 million in distressed assets, significantly improving the quality of our balance sheet. Additionally, our total non-performing assets, non-performing loan inflows, delinquencies, and credit costs are at their lowest levels in two or more years. We believe that the continued improvement in these credit metrics, along with our recently announced efficiency initiatives, better positions us to return to profitability during 2011. These efficiency initiatives are expected to generate an estimated $100 million in expense savings by the end of 2012, with approximately $75 million of these savings to be realized in 2011,” said Kessel D. Stelling, President and CEO of Synovus.
Stelling continued, “In addition to the bold steps taken regarding asset dispositions and efficiency initiatives, our team is intensely focused on growing and expanding customer relationships. Specifically, we have taken major steps to ramp up our commercial banking efforts, recently assembling a highly-skilled, large corporate banking team to secure business relationships that we believe will not only drive C&I loan growth, but also connect more commercial customers with our full suite of specialized banking solutions. The integration of this team will complement our strong commercial banking team throughout our geographic footprint. We are making investments in the right tools, products and services, and we have recently launched a major initiative to redesign, end-to-end, our loan and deposit processes to be more customer-friendly. We intend to make every transaction and interaction with our bank an exceptional experience for our customers.”
Synovus will host an earnings highlights conference call at 8:30 a.m. EST on
Synovus Financial Corp. is a financial services company with over $30 billion in assets based in