- 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 Second Quarter 2009
· The second quarter results reflect an effective tax rate of 11.9% versus 38.4% in the previous quarter. The lower tax benefit is primarily driven by a non-cash charge of approximately $170 million to record an increase in the valuation allowance for deferred tax assets, in accordance with the requirements of Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes." This charge does not preclude Synovus from carrying back current year operating losses to obtain refunds from prior periods or using net deferred tax assets to offset future taxable income.
· Total credit costs for the second quarter were $807.8 million, including provision expense of $631.5 million and foreclosed real estate costs of $172.4 million. These costs were largely driven by a significant increase in the allowance for loan losses as well as the impact of losses on liquidations of non-performing assets.
· Pre-tax, Pre-credit Costs Income was $144.8 million, up $15.6 million over the first quarter of 2009.
· Net Interest Margin was 3.23%, up 18 basis points from 3.05% in the first quarter of 2009.
· Non-performing Assets were down $15.0 million from the first quarter of 2009, as dispositions of non-performing assets reached $404 million in the second quarter.
· Allowance for Loan Losses increased $276.3 million in the quarter to 3.33% of total loans.
· Total Past Due Loans and Still Accruing were down $255.3 million in the quarter to 1.20% of loans outstanding, compared to 2.12% in the first quarter of 2009.
· Mortgage revenues increased $5.3 million from the first quarter of 2009 to $14.6 million in the second quarter of 2009.
· Capital Ratios – Tangible Common Equity to Tangible Assets Ratio was 6.05%, Tier 1 Capital Ratio was 9.52%, and Total Risk-Based Capital Ratio was 12.76%.
Synovus will host an earnings highlights conference call at
Synovus is a financial services holding company with approximately $35 billion in assets based in
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 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, our statements regarding (1) improvements in our core operating results; (2) our expectations regarding the opportunity to return to profitability during 2010; (3) our belief in our demonstrated core earnings potential in a more favorable credit environment; (4) our liquidity position and capital strength in terms of positioning us for the future; and (5) the assumptions underlying our expectations. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. A number of important factors could cause actual results to differ materially from those contemplated by the forward- looking statements in this press release and our filings with the Securities and Exchange Commission. Many of these factors are beyond Synovus’ ability to control or predict. Factors that could cause actual results to differ materially from those contemplated in this press release and our filings with the Securities and Exchange Commission include: (1) further deteriorations in credit quality, particularly in residential construction and development loans, may continue to result in increased non-performing assets and credit losses, which will adversely impact our earnings and capital; (2) declining values of residential real estate may result in further write-downs of assets, which may increase our credit losses and negatively affect our financial results; (3) continuing weakness in the residential real estate environment may negatively impact our ability to liquidate non-performing assets; (4) the impact on our borrowing costs, capital cost and our liquidity due to adverse changes in our current credit ratings; (5) our ability to manage fluctuations in the value of our assets and liabilities to maintain sufficient capital and liquidity to support our operations; (6) restrictions or limitations on access to funds from subsidiaries, thereby restricting our ability to make payments on our obligations or dividend payments; (7) continuing deteriorations in general economic conditions and conditions in the financial markets; (8) inadequacy of our allowance for loan losses, or the risk that the allowance may prove to be inadequate or may be negatively affected by credit risk exposures; (9) changes in the interest rate environment which may increase funding costs and reduce earning assets yields, thus reducing margins; (10) risks associated with the concentration of our non-performing assets in certain geographic regions and with affiliated borrowing groups; (11) the risk of additional future losses if the proceeds we receive upon the liquidation of non-performing assets are less than the fair value of such assets; (12) changes in accounting standards; (13) slower than anticipated rates of growth in non-interest income; (14) impact of the Emergency Economic Stabilization Act and other recent and proposed changes in the regulation of banks and financial institutions; (15) risks associated with litigation; (16) the volatility of our stock price; and (17) the other factors set forth in Synovus’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, 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. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise.