Synovus Financial 10-K Reveals 28% Net Income Drop

Synovus Financial Corp. has recently released its 10-K report, detailing its operations as a bank holding company for Synovus Bank, which offers commercial and consumer banking products and services through four segments: Community Banking, Wholesale Banking, Consumer Banking, and Financial Management Services. The company provides various financial services, including portfolio management, investment banking, and trust and financial planning services. Synovus was founded in 1888 and is headquartered in Columbus, Georgia.

The 10-K report highlights the following financial metrics and changes in the business: Net interest income increased by 1% to $1,816,655, and non-interest revenue decreased by 1% to $404,010. Total TE revenue increased by 1% to $2,225,286, while non-interest expense increased by 15% to $1,335,424. Income before income taxes decreased by 28% to $696,162, and net income decreased by 28% to $542,141. Net income available to common shareholders decreased by 30% to $507,755, and net income per common share, both basic and diluted, decreased by 30%. Return on average common equity decreased to 12.2% from 17.4%, and return on average assets decreased to 0.90% from 1.32%. Loans, net of deferred fees and costs, decreased by 1% to $43,404,490, and total average loans increased by 6% to $43,746,328. Core deposits (excluding brokered deposits) increased by 3% to $44,696,186, and total deposits increased by 4% to $50,739,185. Net interest margin decreased to 3.21% from 3.32%, and the dividend payout ratio increased to 43.93% from 27.49%. Non-performing assets ratio increased to 0.66% from 0.33%, and non-performing loans ratio increased to 0.66% from 0.29%. The net charge-off ratio increased to 0.35% from 0.13%, and the ACL to loans coverage ratio increased to 1.24% from 1.15%. * The CET1 capital ratio increased to 10.22% from 9.63%, and the total shareholders’ equity to total assets ratio increased to 8.56% from 7.49%.

As a result of these announcements, the company's shares have moved -0.6% on the market, and are now trading at a price of $36.98. For more information, read the company's full 10-K submission here.

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