Profit-taking in Synovus after Q3 earnings

Net interest income of $204M is up a hair from Q2, with net interest margin up one basis point to 3.40%. Company expects "slight downward pressure" on NIM in Q4 (presentation slide 7)

Noninterest income of $63.6M is off 2.3% from last quarter primarily due to a $2M decline in mortgage banking income (company expects continued modest decline in Q4). Adjusted noninterest expense of $171M up 2%, thanks to higher salaries. Earnings call (transcript): "Expense management is a way of life for us."

Total loans of $19.71B is up a hair from Q2. C&I loans growth of $18.1M, a 0.7% annualized rate. Retail loans growth of $83.3M, a 9.5% annualized rate. Q4 loan growth is expected to be modestly stronger (presentation slide 5).

Net charge-offs of $23M are off from $30M in Q2 and $96.5M a year ago.

Tier 1 Common Equity ratio of 9.93% vs. 8.97% in Q2.

SNV -2.4%.

Q3 results.

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Comments (1)
  • rglutz
    , contributor
    Comments (21) | Send Message
    It's a great stock for the long haul but right now with all the fears in banks with slowly rising interest rates which will slow their mortgage originations and rising costs, it'll be hard for these banks to make a good profit until they are really diversified into commercial banking, etc... SNV's big play is to see if a another large bank is going to gobble them up or a merger play. That's plausible over the next year or two.
    22 Oct 2013, 04:02 PM Reply Like
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