On October 18, 2023, Synovus Financial Corp (SNV, Financial) released its financial results for the third quarter ended September 30, 2023. Despite a challenging market environment, the company demonstrated resilience and disciplined execution, with a focus on strengthening core client relationships and positioning Synovus for future growth.
Financial Performance
Synovus reported diluted earnings per share of $0.60 for Q3 2023, compared to $1.33 in Q3 2022. Total revenue of $550.3 million declined by 5% compared to the third quarter of 2022, driven by a net interest income decrease of 7%, partially offset by growth in client fee income, excluding mortgage, of 5% year-over-year.
Balance Sheet and Capital Ratios
The company's total loans ended the quarter at $43.68 billion, down $673.6 million sequentially, primarily driven by the $1.2 billion medical office building loans sale. Total deposits ended the quarter at $50.20 billion, up $123.5 million sequentially, while core deposits (excluding brokered deposits) grew $431.5 million.
The preliminary CET1 ratio improved 27 bps during the quarter to 10.13%, and the preliminary total risk-based capital ratio of 13.12% increased 32 bps from the previous quarter as capital preservation remains the near-term priority given persistent economic uncertainty.
Company Outlook
Despite the challenging market dynamics, Synovus remains optimistic about its future growth. The company has taken proactive measures to derisk the company, including reducing its wholesale funding ratio to 15% and elevating the CET1 ratio beyond 10%, while also streamlining ongoing expenses. Synovus is confidently looking forward to a strong close for 2023, and is optimistic about the return to a stronger growth orientation as it progresses through 2024.
Conference Call
Synovus will host an earnings highlights conference call at 8:30 a.m. ET on October 19, 2023. The earnings call will be accompanied by a slide presentation. Shareholders and other interested parties may listen to this conference call via simultaneous internet broadcast. For a link to the webcast, go to investor.synovus.com/event. The replay will be archived for 12 months and will be available 30-45 minutes after the call.
