Synovus Financial Corporation Grows Loans 7%; Mortgage Banking Income Falls

As earnings season continued, Synovus Financial Corporation (NYSE: SNV  ) reported its fourth-quarter earnings today, with a net income of $35.8 million compared to $709 million in the fourth quarter of 2012. However in the fourth quarter of 2012 the company realized an $800 million tax benefit.

Excluding one-time credit charges as a result of the sale of distressed assets in the fourth quarter of 2012, Synovus had a pre-tax, pre-credit costs income of $96.2 million in the fourth quarter of 2013, versus $95.3 million and $108 million in the third quarter of 2013 and fourth quarter of 2012, respectively.

Synovus attributed the dip in income to lower net interest income from shrinking net interest margins, and dramatically lower mortgage banking income, which fell from $9.0 million in the fourth quarter of 2012 to $2.9 million in the most recent quarter. In addition its investment securities gains fell from $8.2 million to $737,000, and its private equity investments went from reporting a gain of $1.8 million to a loss of $2.1 million over the year.

The company did manage expenses well, as they fell from $213 million in the fourth quarter of 2012 to $190.7 million in the most recent quarter, a decline of 10.6%. Synovus also highlighted that it grew its loans by $346 million from the third quarter to the fourth quarter, representing an annualized gain of 7%. Commercial and industrial loans grew by $272.5 million from the third quarter of 2013, or 11.1% annualized, and retail loans grew by $75.6 million from the third quarter of 2013, or 8.4% annualized. 

"We were pleased to report 7% annualized sequential quarter loan growth, driven primarily by C&I [commercial and industrial] and retail lending," said Synovus Chairman and CEO Kessel D. Stelling. "Partnerships between our local bank divisions and large corporate banking teams across our five-state footprint produced meaningful results, and we saw growth in key markets such as Atlanta, Tampa, Charleston, Nashville, Savannah, and Columbus." Stelling noted in a statement that home equity lines of credit and private client mortgages drove the growth in retail loans during the quarter.

link


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2802408, ~/Articles/ArticleHandler.aspx, 9/18/2014 6:13:43 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement