Synovus Financial Corporation (NYSE:SNV) Q4 2016 Earnings Conference Call Transcript

Jan 17, 2017 • 08:30 am ET

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Synovus Financial Corporation (NYSE:SNV) Q4 2016 Earnings Conference Call Transcript

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Presentation
Operator
operator

Good morning, ladies and gentlemen, and welcome to the Synovus Fourth Quarter 2016 Earnings Conference Call. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation.

It is now my pleasure to turn the floor over to your host, Bob May. Sir, the floor is yours.

Executive
Bob May

Thank you, Paul, and good morning, everyone. During the call, we'll be referencing the slides and press release that are available within the Investor Relations section of our website synovus.com. Kessel Stelling, Chairman and CEO, will be our primary presenter today with our executive management team available to answer your questions.

(Forward-Looking Cautionary Statements)

During the call, we will reference non-GAAP financial measures related to the company's performance. You may see the reconciliation of these measures in the appendix of our presentation.

Thank you. And now I'll turn it over to Kessel Stelling.

Executive
Kessel Stelling

Well, thank you, Bob. Good morning to everyone, and welcome to our fourth quarter earnings call. As usual, I'll walk us through the deck, and then we'll open up the floor to questions from our team here in Columbus.

So let's start with slide three of the deck. As you'll see, profitability continued to improve during the quarter. We reported net income to available common shareholders of $66 million. It represents an 18.2% increase versus the fourth quarter of 2015.

Diluted earnings per share was $0.54, up 5.6% versus the third quarter of '16 and up 26% versus the fourth quarter of '15. Adjusted diluted EPS was also $0.54, which is up 3.6% versus $0.52 in 3Q '16 and up 22.2% versus the $0.44 in the fourth quarter of '15.

Our return on assets was 90 basis points, improving two basis points sequentially and nine basis points versus a year ago. Total revenues were $301.7 million, up $7.5 million or 2.6% sequentially and up 8.2% versus a year ago with net interest income increasing 9.8% and adjusted net interest income increasing 3%.

The adjusted efficiency ratio improved to 60.32% for the quarter, a 23 basis point sequential quarter improvement and 181 basis point improvement versus a year ago. Moving to the balance sheet. Total average loans increased $583.4 million or 10% annualized on a sequential quarter basis and grew $1.61 billion or 7.3% versus a year ago.

Loans this quarter included our acquisition of Global One, which added $357 million on October 1 of this year. We'll give more color about loan growth later in the call. Total average deposits grew $631 million or 10.4% annualized versus third quarter of '16 and 6.1% versus the fourth quarter of '15.

And just a couple of highlights on credit quality and capital. We continued to see favorable credit quality trends. The NPL ratio was flat compared to 3Q '16 and improved 11 basis points from fourth quarter '15 to 0.64%, and our NPA ratio was 0.74%, improving three basis points from the third quarter of '16 and 22