Synovus reports profit of $55.4 million in third quarter, with loans and deposits rising
The Synovus profit machine continued to pick up steam in the third quarter, with the regional bank reporting net income of $55.4 million, or 42 cents per share.
That’s up from $44.2 million, or 32 cents per share, in the same July-September period a year ago, with the current earnings per share figure meeting to the penny the expectations of Wall Street analysts following the company, according to research firm Thomson Financial.
Synovus Financial Corp., headquartered in downtown Columbus and parent firm of Columbus Bank and Trust, the city’s largest financial institution, experienced growth in the basics, including total loans on its books and deposits.
Synovus Chairman and Chief Executive Officer Kessell Stelling, who has guided the bank steadily back to profitable waters following a wave of red ink during the Great Recession, praised the progress the company has made and is building upon.
“Our performance in the third quarter demonstrated our team’s continued progress in growing loans, especially in high-growth markets, in growing core deposits across our footprint, and in improving the quality of our balance sheet,” he said in a statement.
“Moving ahead, we are actively engaged in initiatives that generate growth, specifically in areas that further diversify our balance sheet and improve our fee income contribution,” the CEO said. “We continue to add revenue-generating talent at an aggressive pace while also managing expenses to support our investments in growth. Above all, our team remains committed to serving customers and winning new relationships.”
Synovus noted it has wrapped up its buyback of $250 million worth of common stock shares, a move announced in the fourth quarter last year, reducing total shares by 9.1 million or 6.5 percent.
It will continue on that path, with the bank’s board of directors giving its approval to repurchase $300 million more in common stock within 15 months. Buying back shares, or taking stock off the market, is aimed at making those left remaining in the hands of investors even more valuable.
The bank’s board also gave approval to increase the company’s quarterly common stock dividend from 10 cents per share to 12 cents per share. That will begin with the quarterly dividend to be paid in January.
“Our ability to take this action is a direct result of our sustained growth, significantly improved risk profile, and strong capital position,” Stelling said.
Drilling down into its third-quarter numbers, Synovus reported that total loans climbed just over $369 million to $21.86 billion by the end of September. Average deposits jumped by $1.92 billion from a year ago to $22.86 billion.
The profit was made on net-interest income of nearly $208 million, up from $206 million a year ago, with non-interest income coming in at $67 million, up from just under $64 million. The latter category includes things like mortgage and brokerage revenue, bankcard fees and charges on deposits.
Through the first nine months of 2015, Synovus reported a profit of nearly $168 million, or $1.20 per share, 18 percent higher than the $142 million, or 96 cents per share, during the same period a year ago.
Nine-month net-interest income was just over $614 million, compared to nearly $612 million a year ago, with non-interest income totaling nearly $202 million, an increase from $197.5 million.
The company continues to maintain a grip on overall expenses, with that category falling 4.6 percent through the first nine months, dropping from $560 million a year ago to nearly $535 million at the end of September this year.
Synovus, like the banking industry as a whole, has closed some branches and spent money on developing mobile banking technology to meet the needs of customers turning to their smartphones, tablets and computers to keep track of their accounts and handle transactions.
The company also continues to see its loan quality improve, with non-performing loans, non-performing assets and charge-offs tumbling from the third quarter of last year through this September. Total loan delinquencies also remain low, it said.
Synovus oversees about $28 billion in assets through its 28 locally branded divisions in five Southeast states. It operates 258 branches with 336 ATMS in Georgia, Alabama, South Carolina, Florida, and Tennessee.
STOCK WATCH
Investors reacted favorably to the third-quarter earnings report issued Tuesday by Synovus Financial Corp. In trading on the New York Stock Exchange, the Columbus-based regional bank’s shares jumped 80 cents, or 2.6 percent, to close at an even $31. That’s near the stock’s 52-week high of $32.52 per share. The low for the past year is $23.16 per share.
This story was originally published October 20, 2015 at 9:18 AM with the headline "Synovus reports profit of $55.4 million in third quarter, with loans and deposits rising."