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Post Earnings Coverage as Synovus Financial's Q1 EPS Surged 29.8%; Outshined Estimates

Upcoming AWS Coverage on Towne Bank

LONDON, UK / ACCESSWIRE / April 24, 2017 / Active Wall St. announces its post-earnings coverage on Synovus Financial Corp. (NYSE: SNV). The Company reported its financial results for the first quarter fiscal 2017 (Q1 FY17) on April 17, 2017. The Columbus, Georgia-based Company's adjusted diluted EPS surged 29.8% y-o-y, outperforming Wall Street's estimates. Register with us now for your free membership at:


One of Synovus Financial's competitors within the Regional - Mid-Atlantic Banks space, Towne Bank (NASDAQ: TOWN), is estimated to report earnings on April 27, 2017. AWS will be initiating a research report on Towne Bank following the release of its next earnings results.

Today, AWS is promoting its earnings coverage on SNV; touching on TOWN. Get our free coverage by signing up to:


Earnings Reviewed

During Q1 FY17, Synovus Financial's total revenue rose 8.1% y-o-y to $304.1 million. Quarterly revenues beat market consensus estimates of $301.9 million. The Company's net interest income grew 10.0% to $239.93 million in Q1 FY17 from $218.19 million in Q1 FY16. Non-interest income also increased 13.8% y-o-y to $71.84 million in Q1 FY17 from $63.15 million in the year ago same quarter.

The holding Company for Synovus Bank reported net income available to common shareholders of $69.30 million, or $0.56 per diluted share, in Q1 FY17 versus $49.97 million, or $0.39 per diluted share, in Q1 FY16. Meanwhile, adjusted earnings rose to $0.57 per diluted share in Q1 FY17 from $0.44 per diluted share in Q1 FY16. Wall Street had expected the Company to report adjusted earnings of $0.51 per diluted share.

Earnings Metrics

During the reported quarter, the Company's return on average assets improved to 0.96%, from 0.73% in the prior year's comparable quarter. The return average common equity came in at 9.97% in Q1 FY17, which were 289 basis points above 7.08% reported in the year ago comparable period. The Company's efficiency ratio was 64.84% in Q1 FY17, compared to 66.85% in Q1 FY16. Furthermore, the adjusted efficiency ratio for the reported came in at 62.25% versus 63.54% in Q1 FY16.

Net interest margin improved 15 basis points in Q1 FY17 to 3.42% from 3.27% in Q1 FY16. Yield on interest earning assets also improved during Q1 FY17 to 3.88%, from 3.73% in the year ago period. Moreover, the effective cost of funds was flat 0.46% in Q1 FY17.

As on March 31, 2017, the Company's Common Equity Tier 1 ratio stood at 9.86% compared to 10.04% as at end of last year's third quarter. During Q1 FY17, Tier 1 Capital ratio stood at 10.18% versus 10.04% in the prior year's same quarter. As on March 31, 2017, the Company's Tier 1 leverage ratio was 9.13% compared to 9.15% at March 31, 2016. Furthermore, tangible common equity ratio was 9.04% at March 31, 2017, compared to 9.62% as on March 31, 2016.

Balance Sheet Analyzed

Synovus Financial's total average loans balance at the end of Q1 FY16 was $23.78 billion compared to $22.33 billion at the end of Q1 FY16. Total average deposits as on March 31, 2017 were $24.92 billion versus $23.21 billion recorded as on March 31, 2016. The Company had total non-performing assets of $187.23 million, or 0.77% of total loans, as on March 31, 2017, compared to $216.63 million, or 0.95% of total loans, as on March 31, 2016.

Meanwhile, the Company bought back shares worth $15.1 million shares repurchased during Q1 FY17.

Stock Performance

At the closing bell, on Friday, April 21, 2017, Synovus Financial's stock was slightly down by 0.52%, ending the trading session at $41.89. A total volume of 462.92 thousand shares were traded at the end of the day. In the last six months and previous twelve months, shares of the Company have advanced 27.00% and 36.30%, respectively. The Company's shares are trading at a PE ratio of 20.27 and have a dividend yield of 1.43%. At Friday's closing price, the stock's net capitalization stands at $5.12 billion.

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SOURCE: Active Wall Street