- News Releases
- Synovus Announces Quarterly Stock Dividend
- 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 of 2010
|Stronger Capital Position and Positive Credit Trends Highlight Company’s Performance|
§ Inflows of non-performing assets reduced significantly to $340 million, down 36 percent from $530 million in the first quarter.
§ Total non-performing assets were down $270 million, or 15 percent, from the first quarter, impacted by lower inflows, asset
dispositions and charge-offs.
§ Total loans past due and still accruing were 1.06 percent of total loans, down 15 basis points from the first quarter of 2010.
§ Total credit costs declined 11 percent during the second quarter to $353 million, from $395 million in the first quarter of 2010.
issues and future growth opportunities.
§ As of
o Tier 1 Capital Ratio increased to 13.33 percent from 9.68 percent in the first quarter of 2010
o Tier 1 Common Equity Ratio increased to 9.51 percent from 6.03 percent in the first quarter of 2010
o Tangible Common Equity/Tangible Assets Ratio increased to 7.58 percent from 5.08 percent in the first quarter of 2010
Improved Operational Efficiencies
§ In June 2010, Synovus consolidated 30 separate bank charters into a single charter, allowing for improved capital management and cash flow, simplifying regulatory oversight, and positioning Synovus to leverage efficiencies company-wide.
“We are certainly encouraged by these positive trends,” said Kessel D. Stelling, President, COO and Acting CEO of Synovus. “Five consecutive quarterly declines of non-performing asset inflows, moderating past-due levels, and an overall 15 percent reduction in total non-performing assets are all strong predictors of future credit costs. However, we will not be satisfied until we return to profitability. Our team remains focused and committed to taking the necessary steps to reduce and reverse our balance sheet shrinkage; to growing and expanding our customer relationships; and to operating more efficiently under our new, streamlined model,” added Stelling.
Stelling also noted the importance of the successful completion of a $1.1 billion capital raise and the consolidation of the company’s 30 separate charters during the quarter without any disruption in service to customers. “This was truly a transformational quarter for our company,” continued Stelling. “We are confident that our relationship-centered model, with local branding and local decision-making, positions us well for the future.”
Synovus will host an earnings highlights conference call at 4:30 p.m. EDT on
Synovus Financial Corp. is a financial services company with more than $32 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, 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 forward-looking statements through Synovus’ use of words such as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “should,” “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 commercial banking industry and economy in general. These forward-looking statements include, among others, our statements regarding the expected benefits of our charter consolidation and capital raise; our expectations on credit costs trends; expectations regarding future growth opportunities; the actions we are taking to reduce and reverse balance sheet shrinkage, to grow and expand our customer relationships and to improve our operating efficiencies; 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 report. 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
Use of Non-GAAP Financial Measures
The measure entitled tangible common equity to tangible assets ratio is not a measure recognized under
Synovus believes that this non-GAAP financial measure provides meaningful additional information about Synovus to assist management and investors in evaluating Synovus’ capital strength. This non-GAAP financial measure should not be considered as a substitute for the ratio of total shareholders’ equity to total assets determined in accordance with GAAP and may not be comparable to other similarly titled measures at other companies.
The computation of tangible common equity to tangible assets ratio, and the reconciliation of this measure to the ratio of total shareholders’ equity to total assets are set forth in the tables below: