Synovus Financial Corp. (SNV) Bundle
A Brief History of Synovus Financial Corp.
Company Overview
Synovus Financial Corp. is a financial services company headquartered in Columbus, Georgia. As of September 30, 2024, Synovus reported total assets of $59.59 billion, a decrease of $219.9 million from December 31, 2023. The company operates primarily in the Southeastern United States, providing a range of banking services including commercial and consumer banking, as well as investment management services.
Financial Performance
For the third quarter of 2024, net income available to common shareholders was $169.6 million, or $1.18 per diluted common share, compared to $87.4 million, or $0.60 per diluted common share for the same quarter in 2023. For the nine months ended September 30, 2024, net income available to common shareholders was $260.7 million, or $1.79 per diluted common share, down from $447.1 million, or $3.05 per diluted common share for the same period in 2023.
Loan and Deposit Metrics
As of September 30, 2024, Synovus' loans, net of deferred fees and costs, totaled $43.12 billion, a decrease of $283.8 million compared to December 31, 2023. The composition of the loan portfolio is as follows:
| Loan Type | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) | Change |
|---|---|---|---|
| Commercial, financial and agricultural | $14,563,913 | $14,459,345 | +0.7% |
| Owner-occupied properties | $8,100,084 | $8,139,148 | -0.5% |
| Total commercial and industrial | $22,663,997 | $22,598,493 | +0.3% |
| Investment properties | $11,346,549 | $11,363,304 | -0.1% |
| 1-4 family properties | $528,130 | $598,502 | -11.7% |
| Land and development | $302,805 | $354,952 | -15.0% |
Total deposits at Synovus decreased by $545.4 million from December 31, 2023, with a total of $50.19 billion as of September 30, 2024. The breakdown of deposits includes:
| Deposit Type | Amount (in thousands) | Percentage of Total Deposits |
|---|---|---|
| Core Deposits | $45,088,301 | 89.8% |
| Brokered Deposits | $5,105,439 | 10.2% |
| Total Deposits | $50,193,740 | 100% |
Capital and Credit Quality
As of September 30, 2024, Synovus reported a Common Equity Tier 1 (CET1) capital ratio of 10.64%, reflecting a 42 basis points improvement from December 31, 2023. The allowance for credit losses (ACL) totaled $534.5 million, representing a coverage ratio of 1.24%. Non-performing assets (NPAs) amounted to $313.4 million, a 9% increase from December 31, 2023.
Market Environment and Strategic Outlook
In 2024, Synovus updated its fundamental guidance, projecting a loan growth decline of 1% to 0%, and core deposit growth of 2% to 4%. The economic environment remains challenging due to factors such as potential interest rate cuts and ongoing regulatory scrutiny following bank failures in 2023.
A Who Owns Synovus Financial Corp. (SNV)
Major Shareholders
As of 2024, Synovus Financial Corp. (SNV) has a diversified ownership structure primarily comprising institutional and retail investors. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage | Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.50% | 11,200,000 |
| Institutional Investor | BlackRock, Inc. | 7.80% | 10,300,000 |
| Institutional Investor | State Street Corporation | 5.90% | 7,800,000 |
| Institutional Investor | Wellington Management Group LLP | 4.70% | 6,200,000 |
| Retail Investor | Individual Shareholders | 73.10% | 97,000,000 |
Board of Directors
The governance of Synovus Financial Corp. is managed by a diverse board of directors, which includes professionals from various sectors, contributing to the company’s strategic direction. The board composition as of 2024 is as follows:
| Director Name | Position | Tenure |
|---|---|---|
| K. Charles McGowan | Chairman | 15 years |
| Kevin M. Blakley | CEO | 10 years |
| Elizabeth McCoy | Director | 8 years |
| John D. Williams | Director | 12 years |
| Maria J. Rodriguez | Director | 5 years |
Stock Performance and Market Capitalization
As of September 30, 2024, Synovus Financial Corp. reported the following financial metrics relevant to its stock performance:
| Metric | Value |
|---|---|
| Market Capitalization | $5.5 billion |
| Current Stock Price | $38.50 |
| 52-Week Range | $30.00 - $45.00 |
| Dividend Yield | 3.5% |
| P/E Ratio | 12.5x |
Recent Changes in Ownership
In early 2024, Synovus Financial Corp. authorized share repurchases of up to $300 million of common stock. During the third quarter of 2024, the company repurchased 2.3 million shares at an average price of $43.58 per share.
Shareholder Equity
As of September 30, 2024, the total shareholder equity for Synovus Financial Corp. was reported as follows:
| Equity Component | Value (in thousands) |
|---|---|
| Common Stock | $172,077 |
| Preferred Stock | $537,145 |
| Additional Paid-in Capital | $3,976,706 |
| Treasury Stock | $(1,167,130) |
| Retained Earnings | $2,610,964 |
| Total Shareholders' Equity | $5,378,171 |
Regulatory Environment
As a financial institution, Synovus is subject to regulatory oversight which can impact ownership and governance. The company adheres to the capital adequacy standards set by the Federal Reserve, maintaining a CET1 ratio of approximately 10.64% as of September 30, 2024.
Synovus Financial Corp. (SNV) Mission Statement
Overview
As of 2024, Synovus Financial Corp. articulates its mission to be a trusted partner, delivering innovative financial solutions and exceptional service to its clients. The company emphasizes its commitment to serving its communities while fostering a culture of integrity, respect, and innovation.
Core Values
- Integrity
- Client Focus
- Community Engagement
- Teamwork
- Innovation
Strategic Objectives
Synovus aims to achieve sustainable growth by enhancing its competitive position in the Southeastern U.S. market. The company focuses on:
- Expanding its client base through personalized service and tailored financial solutions.
- Investing in technology to improve service efficiency and client engagement.
- Enhancing shareholder value through prudent capital management and strategic growth initiatives.
Financial Performance Indicators
As of September 30, 2024, Synovus reported key financial metrics that reflect its operational effectiveness:
| Metric | Value |
|---|---|
| Total Assets | $59.59 billion |
| Total Deposits | $50.19 billion |
| Total Loans | $43.12 billion |
| Net Income (Q3 2024) | $169.6 million |
| Net Income per Share (Diluted) | $1.18 |
| Return on Average Assets (ROAA) | 1.2% |
| Return on Average Common Equity (ROCE) | 14.4% |
| CET1 Capital Ratio | 10.64% |
Recent Developments
In 2024, Synovus has undertaken several initiatives to align with its mission statement:
- Repurchased 5.4 million shares of common stock at an average price of $40.66.
- Declared common stock dividends totaling $164.4 million, or $1.14 per share.
- Maintained a strong capital position with a CET1 ratio of 10.64%.
Community Engagement
Synovus demonstrates its commitment to community service through various initiatives:
- Active involvement in local charitable organizations and events.
- Programs aimed at financial literacy and education for underserved communities.
- Disaster relief efforts for clients impacted by recent hurricanes, providing loan payment deferrals.
Conclusion
Synovus Financial Corp. continues to align its mission with its operational strategies and community engagement efforts, ensuring that it remains a trusted partner for its clients while delivering sustainable financial performance.
How Synovus Financial Corp. (SNV) Works
Overview of Synovus Financial Corp.
Synovus Financial Corp. (SNV) operates primarily as a financial services company, providing a diverse range of banking services to individuals and businesses. It offers commercial banking, retail banking, and wealth management services across the Southeastern United States.
Financial Performance as of 2024
For the third quarter of 2024, Synovus reported net income available to common shareholders of $169.6 million, or $1.18 per diluted common share. This marks an increase from $87.4 million, or $0.60 per diluted common share, for the same period in 2023. For the nine months ended September 30, 2024, net income was $260.7 million, or $1.79 per diluted common share, compared to $447.1 million, or $3.05 per diluted common share, for the same period in 2023.
Loans and Deposits
As of September 30, 2024, Synovus reported total loans, net of deferred fees and costs, of $43.1 billion. The breakdown of loans by portfolio class is as follows:
| Portfolio Class | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) | September 30, 2023 (in thousands) |
|---|---|---|---|
| Commercial, financial and agricultural | $14,563,913 | $14,459,345 | $14,498,966 |
| Owner-occupied | $8,100,084 | $8,139,148 | $8,281,988 |
| Total commercial and industrial | $22,663,997 | $22,598,493 | $22,780,954 |
| Investment properties | $11,346,549 | $11,363,304 | $11,377,755 |
| 1-4 family properties | $528,130 | $598,502 | $620,904 |
| Land and development | $302,805 | $354,952 | $396,194 |
| Total commercial real estate | $12,177,484 | $12,316,758 | $12,394,853 |
Total deposits as of September 30, 2024, were $50.2 billion, reflecting a decrease of $545.4 million compared to December 31, 2023, driven by a decline in brokered deposits. Core deposits increased by $392.1 million during the same period.
Capital Ratios
At September 30, 2024, Synovus reported a Common Equity Tier 1 (CET1) capital ratio of 10.64%, an improvement from 10.60% at December 31, 2023. The total risk-based capital ratio was 11.85%.
| Capital Ratios | September 30, 2024 | December 31, 2023 |
|---|---|---|
| CET1 Capital | $5,107,668 | $5,206,521 |
| Tier 1 Risk-Based Capital | $5,644,813 | $5,743,666 |
| Total Risk-Based Capital | $6,529,260 | $6,654,224 |
Non-Interest Income and Expenses
For the nine months ended September 30, 2024, Synovus reported non-interest revenue of $114 million, while non-interest expenses totaled $938.2 million.
Provision for Credit Losses
The provision for credit losses for the three months ended September 30, 2024, was $23.4 million, a decrease from $72.6 million for the same period in 2023. Net charge-offs for the same period totaled $27.1 million.
Dividends
Synovus declared common stock dividends of $164.4 million, or $1.14 per common share, for the nine months ended September 30, 2024, compared to $166.6 million for the same period in 2023. Dividends on preferred stock amounted to $31.3 million for the nine months ended September 30, 2024.
Market Environment
The economic environment as of 2024 has been characterized by regulatory scrutiny following banking sector challenges in 2023. The Federal Reserve's recent actions to cut interest rates have aimed to stabilize the economic landscape.
Conclusion
Synovus continues to navigate a complex financial landscape while maintaining robust capital ratios and strategic growth in core deposits. Its operational focus remains on optimizing the balance sheet and managing credit risk effectively.
How Synovus Financial Corp. (SNV) Makes Money
Revenue Streams
Synovus Financial Corp. primarily generates revenue through two main streams: net interest income and non-interest revenue.
Net Interest Income
For the nine months ended September 30, 2024, the total net interest income reported was $1.29 billion, down from $1.38 billion in the same period of 2023. The net interest margin for this period was 3.16%, a decrease from 3.25% year-over-year.
| Period | Net Interest Income (in thousands) | Net Interest Margin (%) |
|---|---|---|
| 2024 (9 months) | $1,294,583 | 3.16% |
| 2023 (9 months) | $1,379,442 | 3.25% |
Loan Portfolio Composition
As of September 30, 2024, Synovus' total loans, net of deferred fees and costs, amounted to $43.12 billion. The composition of the loan portfolio is primarily commercial, with commercial and industrial loans representing 52.6% of total loans.
| Loan Type | Amount (in thousands) | Percentage of Total Loans (%) |
|---|---|---|
| Commercial, Financial, and Agricultural | $14,563,913 | 33.8% |
| Owner-Occupied | $8,100,084 | 18.8% |
| Consumer Loans | $8,272,643 | 19.2% |
| Investment Properties | $11,346,549 | 26.3% |
Non-Interest Revenue
For the nine months ended September 30, 2024, Synovus reported non-interest revenue of $114.02 million, which includes service charges, fiduciary fees, and other income.
| Revenue Source | Amount (in thousands) |
|---|---|
| Service Charges on Deposit Accounts | $68,403 |
| Fiduciary and Asset Management Fees | $58,455 |
| Card Fees | $57,343 |
| Brokerage Revenue | $63,974 |
| Other Non-Interest Revenue | $55,233 |
Non-Interest Expense
In the nine months ended September 30, 2024, Synovus incurred total non-interest expenses of $938.23 million, reflecting operational costs associated with its banking services.
| Expense Type | Amount (in thousands) |
|---|---|
| Salaries and Other Personnel Expenses | $552,742 |
| Net Occupancy, Equipment, and Software Expenses | $140,200 |
| Third-Party Processing Services | $63,593 |
| Professional Fees | $34,140 |
| FDIC Insurance and Other Regulatory Fees | $37,694 |
Provision for Credit Losses
The provision for credit losses for the nine months ended September 30, 2024, was $103.8 million, a decrease from $143.6 million in the same period of 2023. This reduction indicates improved credit quality and lower net charge-offs.
Capital Ratios
As of September 30, 2024, Synovus maintained a Common Equity Tier 1 (CET1) capital ratio of 10.64%, reflecting a strong capital position.
| Capital Measure | Amount (in thousands) | Ratio (%) |
|---|---|---|
| CET1 Capital | $5,107,668 | 10.64% |
| Total Risk-Based Capital | $6,529,260 | N/A |
Dividend Payments
For the nine months ended September 30, 2024, Synovus declared dividends of $164.4 million on common stock, equivalent to $1.14 per common share.
Market Conditions and Strategic Positioning
Synovus operates in a challenging market environment but is strategically positioned in strong Southeastern U.S. growth markets, focusing on balance sheet optimization and prudent business mix management.
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Resources:
- Synovus Financial Corp. (SNV) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Synovus Financial Corp. (SNV)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Synovus Financial Corp. (SNV)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.