Fri, Aug 2, 1:19 PM (88 days ago)
Synovus Financial Corp.'s Q2 2024 performance was marked by a notable decline in net income, primarily due to strategic losses from the sale of available-for-sale (AFS) investment securities totaling $256.7 million. This strategic repositioning of the investment portfolio significantly impacted non-interest revenue, resulting in a year-over-year decrease of $241.1 million for the quarter and $255.4 million year-to-date. Net interest income also declined by 9% year-to-date due to increased funding costs and negative deposit remixing, although the net interest margin improved by 16 bps from the previous quarter. Total loans decreased by $311.1 million since December 2023, driven by strategic reductions in non-relationship commercial and industrial (C&I) loans and declines in commercial real estate (CRE) loans due to property sales and refinancings. Consumer loans also saw a reduction primarily from the runoff of third-party lending portfolios. Deposits fell by $543.4 million, with a significant decline in brokered deposits partially offset by an increase in core deposits. The loan-to-deposit ratio stood at 85.9%. Credit quality metrics showed NPAs at 60 bps and NPLs at 59 bps, with total past due loans at 30 bps. The allowance for credit losses (ACL) increased slightly to $538.2 million, reflecting a 1 bp rise in the ACL to loans coverage ratio. Capital levels remained robust, with a CET1 ratio of 10.60%, up 38 bps from December 2023. The company also repurchased 3.1 million shares of common stock in the first half of 2024.