COLUMBUS, Ga.--(BUSINESS WIRE)--

Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended March 31, 2018.

First Quarter Highlights

• Net income available to common shareholders for the first quarter 2018 was $100.6 million or $0.84 per diluted share as compared to $27.0 million or $0.23 per diluted share for the fourth quarter 2017 and $69.3 million or $0.56 per diluted share for the first quarter 2017. The fourth quarter 2017 results included a $23.2 million loss on early extinguishment of debt and a $47.2 million charge related to Federal tax reform.
  • Adjusted earnings per diluted share for the first quarter 2018 were $0.86, a 19.8% increase from the fourth quarter 2017 and a 50.9% increase from the first quarter 2017.
• As a result of Federal tax reform and other one-time and seasonal items, the effective tax rate for the first quarter was 22.6% compared to 32.0% in the first quarter 2017.
• Return on average assets for the first quarter 2018 was 1.34%, compared to 0.37% the previous quarter and 0.96% in the first quarter 2017.
  • Adjusted return on average assets was 1.36%, up 24 basis points from the previous quarter and up 39 basis points from the first quarter 2017.
• Return on average common equity was 14.62%, an increase of 465 basis points from the first quarter 2017.
  • Adjusted return on average common equity was 14.86%, an improvement of 480 basis points from the first quarter 2017.
  • Adjusted return on average tangible common equity was 15.23%, an increase of 490 basis points from the first quarter 2017.
• Total average loans grew $240.8 million or 4.0% annualized from the previous quarter and $816.4 million or 3.4% as compared to the first quarter 2017.
• Total average deposits decreased $497.9 million or 7.7% annualized from fourth quarter 2017 and increased $869.2 million or 3.5% as compared to the first quarter 2017.
• Total ending deposits increased $105.6 million or 1.6% from fourth quarter 2017 and increased $1.15 billion or 4.6% as compared to the first quarter 2017.
• Total revenues¹ were $341.3 million, up $37.2 million or 12.2% from the first quarter 2017.
• Net interest margin was 3.78%, up 13 basis points from the previous quarter and up 36 basis points from the first quarter 2017.
• Efficiency ratio was 57.16%, compared to 66.77% the previous quarter and 64.84% in the first quarter 2017.
  • Adjusted efficiency ratio was 57.42%, an improvement of 483 basis points from the first quarter 2017.
• Credit quality metrics remained favorable, with a net charge-off ratio of 7 basis points, down 8 basis points from the previous quarter and down 5 basis points from first quarter 2017. The non-performing asset ratio was 0.53%, unchanged from the previous quarter and down 24 basis points from first quarter 2017.

“2018 is off to a good start, with 12 percent growth in revenues and a 50 percent increase in earnings per share year-over-year,” said Kessel D. Stelling, Synovus chairman and CEO. “We delivered another quarter of strong operating leverage through disciplined execution of our growth strategies, including talent acquisition and expansion of our presence in high-potential markets. As we approach completion of the transition to a unified Synovus brand, we are already seeing the benefits of greater name recognition across our footprint. Our team is deeply committed to building on our reputation, improving the customer experience, and executing on core growth strategies to meet and exceed long-term targets."

Balance Sheet

• Total average loans for the quarter were $24.85 billion, up $240.8 million or 4.0% annualized from the previous quarter and up $816.4 million or 3.4% as compared to the first quarter 2017.
• Total loans ended the quarter at $24.88 billion, up $95.6 million or 1.6% annualized from the previous quarter and up $624.6 million or 2.6% as compared to the first quarter 2017.
  • Commercial and industrial loans grew by $78.3 million or 2.6% annualized from the previous quarter and $369.2 million or 3.1% as compared to the first quarter 2017.
  • Consumer loans grew by $115.5 million or 8.0% annualized from the previous quarter and $885.2 million or 17.4% as compared to the first quarter 2017.
  • Commercial real estate loans declined by $99.6 million or 5.8% annualized from the previous quarter and declined $631.6 million or 8.5% as compared to first quarter 2017.
• Total average deposits for the quarter were $25.79 billion, down $497.9 million or 7.7% annualized from the previous quarter and up $869.2 million or 3.5% as compared to the first quarter 2017.
  • Average non-time core deposits decreased $120.4 million or 2.3% annualized from the previous quarter and increased $504.1 million or 2.5% as compared to the first quarter 2017.
• Total deposits ended the quarter at $26.25 billion, up $105.6 million or 1.6% annualized from fourth quarter 2017 and up $1.15 billion or 4.6% as compared to the first quarter 2017.
• The loan to deposit ratio remained stable at 95%.

Core Performance

• Total revenues¹ were $341.3 million in the first quarter, up from $339.1 million in the previous quarter, and up $37.2 million or 12.2% from $304.1 million in the first quarter 2017.
• Net interest income was $274.3 million, up $4.6 million or 1.7% from the previous quarter and up $34.4 million or 14.3% from the first quarter 2017.
• Net interest margin was 3.78%, up 13 basis points from the previous quarter. Yield on earning assets was 4.31%, up 16 basis points from the previous quarter, and the effective cost of funds was 0.53%, up 3 basis points from the previous quarter.
• Total non-interest income was $67.0 million, down $2.3 million from the previous quarter and down $4.8 million or 6.7% from first quarter 2017.
  • The first quarters of 2018 and 2017 include net decreases in fair value of private equity investments of $3.1 million and $1.8 million, respectively. First quarter 2017 also included net investment securities gains of $7.7 million.
• Adjusted non-interest income was $70.1 million, up $849 thousand from the previous quarter and up $4.1 million or 6.2% as compared to the first quarter 2017.
  • Core banking fees² were $35.6 million, up $303 thousand or 0.9% from the previous quarter and up $900 thousand or 2.6% from first quarter 2017.
  • Fiduciary and asset management fees, brokerage revenue, and insurance revenues were $23.3 million, up $1.6 million or 7.2% from the previous quarter and up $2.7 million or 12.9% from first quarter 2017.
• Total non-interest expense was $195.2 million, down $31.4 million or 13.8% from the previous quarter and down 1.1% from the first quarter 2017.
  • The first quarter 2018 includes a $2.6 million reduction in litigation contingency accruals. The fourth quarter 2017 included a $23.2 million loss on early extinguishment of debt, and the first quarter 2017 included $6.5 million in restructuring charges.
• Adjusted non-interest expense was $197.8 million, down $3.3 million or 1.6% from the previous quarter and up $7.2 million or 3.8% from the first quarter 2017.
  • Employment expense of $113.7 million increased $2.5 million or 2.2% from the previous quarter and 6.1% from the first quarter 2017.
  • Occupancy and equipment expense of $31.5 million increased $1.4 million or 4.5% from the previous quarter and 7.3% from the first quarter 2018.
  • Other expenses were $52.6 million in the quarter, down $7.1 million or 11.9% from the previous quarter and down $1.5 million or 2.7% from the first quarter 2017.
  • Efficiency ratio for the first quarter was 57.16% as compared to 66.77% in the previous quarter and 64.84% in the first quarter 2017.
    • Adjusted efficiency ratio for the first quarter was 57.42% as compared to 59.29% in the previous quarter and 62.25% in the first quarter 2017.

Credit Quality

• Non-performing loans were $120.1 million at March 31, 2018, up $4.5 million or 3.9% from the previous quarter and down $38.3 million or 24.2% from March 31, 2017. The non-performing loan ratio was 0.48% at March 31, 2018, compared to 0.47% at the end of the previous quarter and 0.65% at March 31, 2017.
• Total non-performing assets were $131.2 million at March 31, 2018, compared to $130.6 million in the previous quarter and down $56.1 million or 29.9% from March 31, 2017. The non-performing asset ratio was 0.53% at March 31, 2018, unchanged from the previous quarter and down from 0.77% at March 31, 2017.
• Net charge-offs were $4.3 million in the first quarter 2017, down $4.7 million or 52.3% from $9.0 million in the previous quarter and down 38.1% from the first quarter 2017. The annualized net charge-off ratio was 0.07% in the first quarter as compared to 0.15% in the previous quarter and 0.12% in the first quarter 2017.
• Total delinquencies (consisting of loans 30 or more days past due and still accruing) remain low at 0.22% of total loans at March 31, 2018, as compared to 0.21% in the previous quarter and 0.26% at March 31, 2017.

Capital

• During the first quarter 2018, Synovus repurchased $26.7 million in common stock, as part of the previously announced share repurchase program of up to $150 million. Additionally, Synovus declared common dividends of $0.25 per share, a 67% increase from the previous quarter.
• Common Equity Tier 1 ratio was 10.11% at March 31, 2018, up from 9.99% at December 31, 2017.
• Tier 1 Capital ratio was 10.51% at March 31, 2018, up from 10.38% at December 31, 2017.
• Total Risk Based Capital ratio was 12.37% at March 31, 2018, up from 12.23% at December 31, 2017.
• Tier 1 Leverage ratio was 9.37% at March 31, 2018, up from 9.19% at December 31, 2017.
• Tangible Common Equity ratio was 8.79% at March 31, 2018, compared to 8.88% at December 31, 2017.

First Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on April 24, 2018. 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.

Synovus Financial Corp. is a financial services company based in Columbus, Georgia, with more than $31 billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services through 250 branches in Georgia, Alabama, South Carolina, Florida, and Tennessee. Synovus Bank, a wholly owned subsidiary of Synovus, was recognized as the “Most Reputable Bank” by American Banker and the Reputation Institute in 2017. Synovus is on the web at synovus.com, and on Twitter, Facebook, LinkedIn, and Instagram.

¹ Total revenues consist of net interest income and non-interest income excluding investment securities gains/(losses).

² Core banking fees include service charges on deposit accounts, card fees, letter of credit fees, ATM fee income, line of credit non-usage fees, gains from sales of government guaranteed loans, and miscellaneous other service charges.

Forward-Looking Statements

This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements through Synovus’ use of words such as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the future or otherwise regarding the outlook for Synovus’ future business and financial performance and/or the performance of the banking industry and economy in general. These forward-looking statements include, among others, our expectations regarding deposits, loan growth and the net interest margin; expectations on our growth strategy, expense initiatives, capital management and future profitability; expectations on credit trends and key credit metrics; and the assumptions underlying our expectations. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Synovus to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, Synovus’ management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements in this press release. Many of these factors are beyond Synovus’ ability to control or predict.

These forward-looking statements are based upon information presently known to Synovus’ management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in Synovus’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2017, under the captions “Cautionary Notice Regarding Forward-Looking Statements” and “Risk Factors” and in Synovus’ quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as otherwise may be required by law.

Non-GAAP Financial Measures

The measures entitled adjusted non-interest income; adjusted non-interest expense; adjusted efficiency ratio; adjusted earnings per diluted share; adjusted return on average assets; adjusted return on average common equity; adjusted return on average tangible common equity; average non-time core deposits; tangible common equity ratio; and common equity Tier 1 (CET1) ratio (fully phased-in); are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are total non-interest income; total non-interest expense; efficiency ratio; earnings per diluted common share; return on average assets; return on average common equity; total average deposits; the ratio of total shareholders' equity to total assets; and the CET1 ratio; respectively.

Management believes that these non-GAAP financial measures provide meaningful additional information about Synovus to assist management and investors in evaluating Synovus’ operating results, financial strength, the performance of its business, and the strength of its capital position. However, these non-GAAP financial measures have inherent limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of operating results or capital position as reported under GAAP. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant items and other factors, and since they are not required to be uniformly applied, they may not be comparable to other similarly titled measures at other companies. Adjusted non-interest income is a measure used by management to evaluate total revenue and non-interest income exclusive of net investment securities gains/losses and changes in fair value of private equity investments, net. Adjusted non-interest expense and the adjusted efficiency ratio are measures utilized by management to measure the success of expense management initiatives focused on reducing recurring controllable operating costs. Adjusted earnings per diluted share, adjusted return on average assets, and adjusted return on average common equity are measurements used by management to evaluate operating results exclusive of items that are not indicative of ongoing operations and impact period-to-period comparisons. Average non-time core deposits is a measure used by management to evaluate organic growth of deposits and the quality of deposits as a funding source. The adjusted return on average tangible common equity is a measure used by management to compare Synovus' performance with other financial institutions because it calculates the return available to common shareholders without the impact of intangible assets and their related amortization, thereby allowing management to evaluate the performance of the business consistently. The tangible common equity ratio and common equity Tier 1 (CET1) ratio (fully phased-in) are used by management and bank regulators to assess the strength of our capital position. The computations of these measures are set forth in the tables below.

Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)		1Q18				4Q17				1Q17
Adjusted non-interest income
Total non-interest income		$	67,046			$	69,352			$	71,839
Subtract: Investment securities gains, net			-				-				(7,668	)
Add/subtract: Decrease/(increase) in fair value of private equity investments, net			3,056				(100	)			1,814
Adjusted non-interest income		$	70,102			$	69,252			$	65,985
Adjusted non-interest expense
Total non-interest expense		$	195,179			$	226,534			$	197,388
Subtract: Earnout liability adjustments			-				(1,700	)			-
Add/subtract: Restructuring charges, net			315				29				(6,511	)
Subtract: Loss on early extinguishment of debt			-				(23,160	)			-
Add/subtract: Litigation contingency expense			2,626				(300	)			-
Subtract: Merger-related expense			-				-				(86	)
Subtract: Amortization of intangibles			(292	)			(292	)			(183	)
Adjusted non-interest expense		$	197,828			$	201,111			$	190,608
Adjusted efficiency ratio
Adjusted non-interest expense		$	197,828			$	201,111			$	190,608
Net interest income			274,284				269,713				239,927
Add: Tax equivalent adjustment			116				234				309
Add: Total non-interest income			67,046				69,352				71,839
Subtract: Investment securities gains, net			-				-				(7,668	)
Total FTE revenues			341,446				339,299				304,407
Add/subtract: Decrease/(increase) in fair value of private equity investments, net			3,056				(100	)			1,814
Adjusted total revenues		$	344,502			$	339,199			$	306,221
Efficiency ratio			57.16	%			66.77	%			64.84	%
Adjusted efficiency ratio			57.42	%			59.29	%			62.25	%

Reconciliation of Non-GAAP Financial Measures, continued
(in thousands, except per share data)		1Q18				4Q17				1Q17
Adjusted earnings per diluted share
Net income available to common shareholders		$	100,607			$	27,046			$	69,298
Add: Earnout liability adjustments			-				1,700				-
Add: Income tax expense related to effects of Federal Tax Reform			-				47,181				-
Add: Income tax expense related to effects of State DTA remeasurement			1,325				-				-
Add: Merger-related expense			-				-				86
Subtract/add: Litigation contingency expense			(2,626	)			300				-
Subtract/add: Restructuring charges, net			(315	)			(29	)			6,511
Add: Amortization of intangibles			292				292				183
Add: Loss on early extinguishment of debt			-				23,160				-
Subtract: Investment securities gains, net			-				-				(7,668	)
Add/subtract: Decrease/(increase) in fair value of private equity investments, net			3,056				(100	)			1,814
Subtract: Income tax benefit related to pre-2017 R&D credits and state taxes			-				(4,847	)			-
Subtract: Tax effect of adjustments			(96	)			(8,740	)			(333	)
Adjusted net income available to common shareholders		$	102,243			$	85,963			$	69,891
Weighted average common shares outstanding, diluted			119,321				120,182				123,059
Adjusted earnings per diluted share		$	0.86			$	0.72			$	0.57

Reconciliation of Non-GAAP Financial Measures, continued
(dollars in thousands)		1Q18				4Q17				1Q17
Adjusted return on average assets
Net income		$	103,166			$	29,605			$	71,857
Add: Earnout liability adjustments			-				1,700				-
Add: Income tax expense related to effects of Federal Tax Reform			-				47,181				-
Add: Income tax expense related to effects of State DTA remeasurement			1,325				-				-
Add: Merger-related expense			-				-				86
Subtract/add: Litigation contingency expense			(2,626	)			300				-
Subtract/add: Restructuring charges, net			(315	)			(29	)			6,511
Add: Amortization of intangibles			292				292				183
Add: Loss on early extinguishment of debt			-				23,160				-
Subtract: Investment securities gains, net			-				-				(7,668	)
Add/subtract: Decrease/(increase) in fair value of private equity investments, net			3,056				(100	)			1,814
Subtract: Income tax benefit related to pre-2017 R&D credits and state taxes			-				(4,847	)			-
Subtract: Tax effect of adjustments			(96	)			(8,740	)			(333	)
Adjusted net income		$	104,802			$	88,522			$	72,450
Net income annualized		$	425,030			$	351,201			$	293,825
Total average assets		$	31,245,708			$	31,388,724			$	30,442,089
Adjusted return on average assets			1.36	%			1.12	%			0.97	%

Reconciliation of Non-GAAP Financial Measures, continued
(dollars in thousands)		1Q18				4Q17				1Q17
Adjusted return on average common equity and adjusted return on average tangible common equity
Net income available to common shareholders		$	100,607			$	27,046			$	69,298
Add: Earnout liability adjustments			-				1,700				-
Add: Income tax expense related to effects of Federal Tax Reform			-				47,181				-
Add: Income tax expense related to effects of State DTA remeasurement			1,325				-				-
Add: Merger-related expense			-				-				86
Subtract/add: Litigation contingency expense			(2,626	)			300				-
Subtract/add: Restructuring charges, net			(315	)			(29	)			6,511
Add: Amortization of intangibles			292				292				183
Add: Loss on early extinguishment of debt			-				23,160				-
Subtract: Investment securities gains, net			-				-				(7,668	)
Add/subtract: Decrease/(increase) in fair value of private equity investments, net			3,056				(100	)			1,814
Subtract: Income tax benefit related to pre-2017 R&D credits and state taxes			-				(4,847	)			-
Subtract: Tax effect of adjustments			(96	)			(8,740	)			(333	)
Adjusted net income available to common shareholders		$	102,243			$	85,963			$	69,891
Net income annualized		$	414,652			$	341,049			$	283,447
Total average shareholders’ equity less preferred stock		$	2,790,878			$	2,851,523			$	2,817,663
Subtract: Goodwill			(57,315	)			(57,315	)			(59,649	)
Subtract: Other intangibles assets, net			(10,915	)			(11,353	)			(13,177	)
Total average tangible shareholders’ equity less preferred stock		$	2,722,648			$	2,782,855			$	2,744,837
Adjusted return on average common equity			14.86	%			11.96	%			10.06	%
Adjusted return on average tangible common equity			15.23	%			12.26	%			10.33	%

Reconciliation of Non-GAAP Financial Measures, continued
(dollars in thousands)		1Q18				4Q17				1Q17
Tangible common equity ratio
Total assets		$	31,501,028			$	31,221,837			$	30,679,589
Subtract: Goodwill			(57,315	)			(57,315	)			(57,010	)
Subtract: Other intangible assets, net			(10,750	)			(11,254	)			(12,137	)
Tangible assets		$	31,432,963			$	31,153,268			$	30,610,442
Total shareholders’ equity		$	2,956,495			$	2,961,566			$	2,962,127
Subtract: Goodwill			(57,315	)			(57,315	)			(57,010	)
Subtract: Other intangible assets, net			(10,750	)			(11,254	)			(12,137	)
Subtract: Series C Preferred Stock			(125,980	)			(125,980	)			(125,980	)
Tangible common equity		$	2,762,450			$	2,767,017			$	2,767,000
Total shareholders’ equity to total assets ratio			9.39	%			9.49	%			9.66	%
Tangible common equity ratio			8.79	%			8.88	%			9.04	%
Average non-time core deposits
Total average deposits		$	25,788,073			$	26,286,009			$	24,918,855
Subtract: Average brokered deposits			(1,951,910	)			(2,198,333	)			(1,380,787	)
Subtract: Average non-brokered time deposits			(3,039,325	)			(3,170,444	)			(3,245,306	)
Average non-time core deposits		$	20,796,838			$	20,917,232			$	20,292,762
Common equity Tier 1 (CET1) ratio (fully phased-in)
Common Equity Tier 1 (CET1)		$	2,814,669
Subtract: Adjustment related to capital components			(16,365	)
CET1 (fully phased-in)		$	2,798,304
Total risk-weighted assets		$	27,831,733
Total risk-weighted assets (fully phased-in)		$	27,957,172
Common equity Tier 1 (CET 1) ratio			10.11	%
Common Equity Tier 1 (CET1) ratio (fully phased-in)			10.01	%

Synovus
	INCOME STATEMENT DATA
	(Unaudited)
	(In thousands, except per share data)				2018			2017												First Quarter
					First			Fourth			Third			Second			First			'18 vs. '17
					Quarter			Quarter			Quarter			Quarter			Quarter			Change
	Interest income			$	313,134			306,934			297,652			285,510			272,401			15.0	%
	Interest expense				38,850			37,221			35,080			34,413			32,474			19.6
	Net interest income				274,284			269,713			262,572			251,097			239,927			14.3
	Provision for loan losses				12,776			8,565			39,686			10,260			8,674			47.3
	Net interest income after provision for loan losses				261,508			261,148			222,886			240,837			231,253			13.1
	Non-interest income:
	Service charges on deposit accounts				19,940			20,372			20,678			20,252			20,118			(0.9	)
	Fiduciary and asset management fees				13,435			13,195			12,615			12,524			12,151			10.6
	Card fees (1)				10,199			9,762			9,729			10,041			9,844			3.6
	Brokerage revenue				8,695			7,758			7,511			7,210			7,226			20.3
	Mortgage banking income				5,047			5,645			5,603			5,784			5,766			(12.5	)
	Income from bank-owned life insurance				3,681			3,900			3,232			3,272			3,031			21.4
	Cabela's transaction fee				-			-			75,000			-			-			nm
	Investment securities (losses) gains, net				-			-			(7,956	)		(1	)		7,668			nm
	(Decrease)/increase in fair value of private equity investments, net				(3,056	)		100			(27	)		(1,352	)		(1,814	)		nm
	Other fee income				4,618			4,042			5,094			6,164			4,868			(5.1	)
	Other non-interest income (1)				4,487			4,578			3,956			4,807			2,981			50.5
	Total non-interest income				67,046			69,352			135,435			68,701			71,839			(6.7	)
	Non-interest expense:
	Salaries and other personnel expense				113,720			111,243			109,675			105,213			107,191			6.1
	Net occupancy and equipment expense				31,480			30,126			30,573			29,933			29,331			7.3
	Third-party processing expense				13,945			14,827			13,659			13,620			12,603			10.6
	FDIC insurance and other regulatory fees				6,793			6,288			7,078			6,875			6,770			0.3
	Professional fees				5,505			6,183			7,141			7,551			5,355			2.8
	Advertising expense				5,092			8,081			3,610			5,346			5,912			(13.9	)
	Foreclosed real estate expense, net				856			1,693			7,265			1,448			2,134			(59.9	)
	Earnout liability adjustments				-			1,700			2,059			1,707			-			nm
	Amortization of intangibles				292			292			292			292			183			59.6
	Loss on early extinguishment of debt				-			23,160			-			-			-			nm
	Litigation contingency expense				(2,626	)		300			401			-			-			nm
	Restructuring charges, net				(315	)		(29	)		519			13			6,511			nm
	Other operating expenses				20,437			22,670			23,374			19,749			21,398			(4.5	)
	Total non-interest expense				195,179			226,534			205,646			191,747			197,388			(1.1	)
	Income before income taxes				133,375			103,966			152,675			117,791			105,704			26.2
	Income tax expense				30,209			74,361			54,668			41,788			33,847			(10.7	)
	Net income				103,166			29,605			98,007			76,003			71,857			43.6
	Dividends on preferred stock				2,559			2,559			2,559			2,559			2,559			-
	Net income available to common shareholders			$	100,607			27,046			95,448			73,444			69,298			45.2	%
	Net income per common share, basic			$	0.85			0.23			0.79			0.60			0.57			49.6	%
	Net income per common share, diluted				0.84			0.23			0.78			0.60			0.56			49.7
	Cash dividends declared per common share				0.25			0.15			0.15			0.15			0.15			66.7
	Return on average assets *				1.34	%		0.37			1.27			1.00			0.96			38	bps
	Return on average common equity *				14.62			3.76			13.24			10.34			9.97			465
	Weighted average common shares outstanding, basic				118,666			119,282			120,900			122,203			122,300			(3.0	)%
	Weighted average common shares outstanding, diluted				119,321			120,182			121,814			123,027			123,059			(3.0	)
nm - not meaningful
bps - basis points
* - ratios are annualized
(1) Beginning January 1, 2018, Synovus began including merchant fees and other card-related fees in Card fees. For periods prior to January 1, 2018, these amounts were previously presented in Other non-interest income and have been reclassified for comparability.

Synovus
	BALANCE SHEET DATA				March 31, 2018			December 31, 2017			March 31, 2017
	(Unaudited)
	(In thousands, except share data)
	ASSETS
	Cash and due from banks			$	348,027			397,848			380,493
	Interest bearing funds with Federal Reserve Bank				636,947			460,928			622,460
	Interest earning deposits with banks				16,851			26,311			24,259
	Federal funds sold and securities purchased under resale agreements				57,192			47,846			50,003
	Cash and cash equivalents (1)				1,059,017			932,933			1,077,215
	Mortgage loans held for sale, at fair value				50,439			48,024			57,686
	Investment securities available for sale, at fair value				3,990,978			3,987,069			3,782,942
	Loans, net of deferred fees and costs				24,883,037			24,787,464			24,258,468
	Allowance for loan losses				(257,764	)		(249,268	)		(253,514	)
	Loans, net				24,625,273			24,538,196			24,004,954
	Cash surrender value of bank-owned life insurance				543,684			540,958			455,474
	Premises and equipment, net				424,342			426,813			412,725
	Goodwill				57,315			57,315			57,010
	Other intangible assets				10,750			11,254			12,137
	Deferred tax asset, net				179,343			165,788			359,121
	Other assets				559,887			513,487			460,325
	Total assets			$	31,501,028			31,221,837			30,679,589
	LIABILITIES AND SHAREHOLDERS' EQUITY
	Liabilities:
	Deposits:
	Non-interest bearing deposits			$	7,381,070			7,686,339			7,264,856
	Interest bearing deposits, excluding brokered deposits				16,865,859			16,500,436			16,452,703
	Brokered deposits				2,006,578			1,961,125			1,388,153
	Total deposits				26,253,507			26,147,900			25,105,712
	Federal funds purchased and securities sold under repurchase agreements				185,531			161,190			146,480
	Long-term debt				1,856,392			1,706,138			2,160,867
	Other liabilities				249,103			245,043			304,403
	Total liabilities				28,544,533			28,260,271			27,717,462
	Shareholders' equity:
	Series C Preferred Stock - no par value, 5,200,000 shares outstanding at March 31, 2018, December 31, 2017, and March 31, 2017				125,980			125,980			125,980
	Common stock - $1.00 par value. 118,702,497 shares outstanding at March 31, 2018, 118,897,295 shares outstanding at December 31, 2017, and 122,321,804 shares outstanding at March 31, 2017				143,017			142,678			142,441
	Additional paid-in capital				3,039,757			3,043,129			3,025,775
	Treasury stock, at cost - 24,314,804 shares at March 31, 2018, 23,780,154 shares at December 31, 2017, and 20,119,614 shares at March 31, 2017				(866,407	)		(839,674	)		(679,746	)
	Accumulated other comprehensive loss				(107,952	)		(54,754	)		(54,751	)
	Retained earnings				622,100			544,207			402,428
	Total shareholders' equity				2,956,495			2,961,566			2,962,127
	Total liabilities and shareholders' equity			$	31,501,028			31,221,837			30,679,589
	(1) In connection with the adoption of ASU 2016-18, Statement of Cash Flows-Restricted Cash, Synovus changed its presentation of cash and cash equivalents to include cash and due from banks as well as interest bearing funds with the Federal Reserve Bank, interest earning deposits with banks, and federal funds sold and securities purchased under resale agreements, which are inclusive of any restricted cash.

Synovus
	AVERAGE BALANCES AND YIELDS/RATES (1)
	(Unaudited)
	(Dollars in thousands)
						2018			2017
						First			Fourth			Third			Second			First
						Quarter			Quarter			Quarter			Quarter			Quarter
	Interest Earning Assets
	Taxable investment securities (2)				$	4,097,162			3,937,278			3,786,436			3,844,688			3,841,556
		Yield				2.34	%		2.29			2.11			2.11			2.06
	Tax-exempt investment securities (2) (4)				$	140			180			259			340			2,730
		Yield (taxable equivalent)				6.57	%		7.97			7.86			6.87			5.81
	Trading account assets (5)				$	8,167			7,360			7,823			3,667			6,443
		Yield				2.66	%		2.78			2.09			2.28			1.72
	Commercial loans (3) (4)				$	18,963,515			18,935,774			19,059,936			19,137,733			19,043,384
		Yield				4.64	%		4.49			4.41			4.27			4.16
	Consumer loans (3)				$	5,899,015			5,704,629			5,440,765			5,215,258			4,992,683
		Yield				4.71	%		4.54			4.55			4.49			4.40
	Allowance for loan losses				$	(251,635	)		(252,319	)		(249,248	)		(251,219	)		(253,927	)
	Loans, net (3)				$	24,610,895			24,388,084			24,251,453			24,101,772			23,782,140
		Yield				4.70	%		4.55			4.49			4.36			4.25
	Mortgage loans held for sale				$	38,360			45,353			52,177			52,224			46,554
		Yield				3.95	%		3.96			3.88			3.87			4.01
	Federal funds sold, due from Federal Reserve Bank, and other short-term investments				$	516,575			922,296			543,556			561,503			654,322
		Yield				1.48	%		1.31			1.23			1.00			0.77
	Federal Home Loan Bank and Federal Reserve Bank stock (5)				$	177,381			159,455			175,263			177,323			170,844
		Yield				3.39	%		4.03			3.50			2.99			3.42
	Total interest earning assets				$	29,448,680			29,460,006			28,816,967			28,741,517			28,504,589
		Yield				4.31	%		4.15			4.11			3.99			3.88
	Interest Bearing Liabilities
	Interest bearing demand deposits				$	5,032,000			4,976,239			4,868,372			4,837,053			4,784,329
		Rate				0.31	%		0.28			0.27			0.23			0.19
	Money market accounts				$	7,561,554			7,514,992			7,528,036			7,427,562			7,424,627
		Rate				0.43	%		0.36			0.34			0.32			0.31
	Savings deposits				$	811,587			804,853			803,184			805,019			909,660
		Rate				0.03	%		0.03			0.03			0.04			0.11
	Time deposits under $100,000				$	1,143,780			1,166,413			1,183,582			1,202,746			1,215,593
		Rate				0.71	%		0.70			0.68			0.67			0.64
	Time deposits over $100,000				$	1,895,545			2,004,031			2,067,347			2,040,924			2,029,713
		Rate				1.02	%		0.99			0.97			0.94			0.92
	Non-maturing brokered deposits				$	424,118			546,413			547,466			564,043			619,627
		Rate				1.14	%		0.81			0.73			0.54			0.41
	Brokered time deposits				$	1,527,793			1,651,920			983,423			815,515			761,159
		Rate				1.75	%		1.63			1.16			0.94			0.92
	Total interest bearing deposits				$	18,396,377			18,664,861			17,981,410			17,692,862			17,744,708
		Rate				0.58	%		0.54			0.46			0.41			0.39
	Federal funds purchased and securities sold under repurchase agreements				$	202,226			184,369			191,585			183,400			176,854
		Rate				0.21	%		0.15			0.08			0.10			0.09
	Long-term debt				$	2,127,994			1,713,982			1,985,175			2,270,452			2,184,072
		Rate				2.32	%		2.67			2.81			2.83			2.83
	Total interest bearing liabilities				$	20,726,597			20,563,212			20,158,170			20,146,714			20,105,634
		Rate				0.76	%		0.72			0.69			0.68			0.65
	Non-interest bearing demand deposits				$	7,391,695			7,621,147			7,305,508			7,298,845			7,174,146
	Effective cost of funds					0.53	%		0.50			0.48			0.48			0.46
	Net interest margin					3.78	%		3.65			3.63			3.51			3.42
	Taxable equivalent adjustment				$	116			234			283			298			309
	(1) Yields and rates are annualized.
	(2) Excludes net unrealized gains and losses.
	(3) Average loans are shown net of unearned income. Non-performing loans are included.
	(4) Reflects taxable-equivalent adjustments, using the statutory federal income tax rate (21% in 2018 and 35% in 2017), in adjusting interest on tax-exempt loans and investment securities to a taxable-equivalent basis.
	(5) Included as a component of Other Assets on the consolidated balance sheet

Synovus
	LOANS OUTSTANDING BY TYPE
	(Unaudited)
	(Dollars in thousands)
					Total Loans				Total Loans				1Q18 vs. 4Q17					Total Loans				1Q18 vs. 1Q17
	Loan Type				March 31, 2018				December 31, 2017				% change (1)					March 31, 2017				% change
	Commercial, Financial, and Agricultural			$	7,191,531				7,179,487				0.7	%			$	7,049,193				2.0	%
	Owner-Occupied				4,910,386				4,844,163				5.5					4,683,508				4.8
	Total Commercial & Industrial				12,101,917				12,023,650				2.6					11,732,701				3.1
	Multi-Family				1,479,573				1,492,159				(3.4	)				1,638,250				(9.7	)
	Hotels				751,232				741,703				5.2					794,685				(5.5	)
	Office Buildings				1,464,473				1,499,834				(9.6	)				1,552,817				(5.7	)
	Shopping Centers				782,580				791,311				(4.5	)				902,954				(13.3	)
	Warehouses				583,645				581,410				1.6					533,262				9.4
	Other Investment Property				557,547				563,648				(4.4	)				594,084				(6.2	)
	Total Investment Properties				5,619,050				5,670,065				(3.6	)				6,016,052				(6.6	)
	1-4 Family Construction				188,939				198,200				(18.9	)				203,151				(7.0	)
	1-4 Family Investment Mortgage				569,965				583,419				(9.4	)				659,346				(13.6	)
	Total 1-4 Family Properties				758,904				781,619				(11.8	)				862,497				(12.0	)
	Commercial Development				65,371				70,062				(27.2	)				65,376				(0.0	)
	Residential Development				104,137				114,079				(35.3	)				130,653				(20.3	)
	Land Acquisition				288,265				299,463				(15.2	)				392,710				(26.6	)
	Land and Development				457,773				483,604				(21.7	)				588,739				(22.2	)
	Total Commercial Real Estate				6,835,727				6,935,288				(5.8	)				7,467,288				(8.5	)
	Consumer Mortgages				2,663,371				2,633,503				4.6					2,350,730				13.3
	Home Equity Lines				1,472,471				1,514,227				(11.2	)				1,587,102				(7.2	)
	Credit Cards				226,713				232,676				(10.4	)				224,349				1.1
	Other Consumer Loans				1,606,799				1,473,451				36.7					922,018				74.3
	Total Consumer				5,969,354				5,853,857				8.0					5,084,199				17.4
	Unearned Income				(23,961	)			(25,331	)			(21.9	)				(25,720	)			(6.8	)
	Total			$	24,883,037				24,787,464				1.6	%			$	24,258,468				2.6	%
	(1) Percentage change is annualized.
	NON-PERFORMING LOANS COMPOSITION
	(Unaudited)
	(Dollars in thousands)
					Total				Total									Total
					Non-performing				Non-performing				1Q18 vs. 4Q17					Non-performing				1Q18 vs. 1Q17
	Loan Type				Loans				Loans				% change					Loans				% change
					March 31, 2018				December 31, 2017									March 31, 2017
	Commercial, Financial, and Agricultural			$	81,606				70,130				16.4	%			$	60,381				35.2	%
	Owner-Occupied				4,067				6,654				(38.9	)				26,564				(84.7	)
	Total Commercial & Industrial				85,673				76,784				11.6					86,945				(1.5	)
	Multi-Family				1,028				1,241				(17.2	)				1,556				(33.9	)
	Hotels				-				-				-					323				nm
	Office Buildings				1,272				1,532				(17.0	)				185				nm
	Shopping Centers				89				165				(46.1	)				-				nm
	Warehouses				-				226				(100.0	)				226				(100.0	)
	Other Investment Property				540				640				(15.6	)				750				(28.0	)
	Total Investment Properties				2,929				3,804				(23.0	)				3,040				(3.7	)
	1-4 Family Construction				-				-				-					306				nm
	1-4 Family Investment Mortgage				2,634				2,849				(7.5	)				8,497				(69.0	)
	Total 1-4 Family Properties				2,634				2,849				(7.5	)				8,803				(70.1	)
	Commercial Development				44				45				(2.2	)				205				(78.5	)
	Residential Development				3,220				3,257				(1.1	)				9,033				(64.4	)
	Land Acquisition				1,311				2,495				(47.5	)				5,114				(74.4	)
	Land and Development				4,575				5,797				(21.1	)				14,352				(68.1	)
	Total Commercial Real Estate				10,138				12,450				(18.6	)				26,195				(61.3	)
	Consumer Mortgages				7,708				7,203				7.0					19,874				(61.2	)
	Home Equity Lines				14,868				17,455				(14.8	)				22,918				(35.1	)
	Other Consumer Loans				1,694				1,669				1.5					2,434				(30.4	)
	Total Consumer				24,270				26,327				(7.8	)				45,226				(46.3	)
	Total			$	120,081				115,561				3.9	%			$	158,366				(24.2	)%

Synovus
	CREDIT QUALITY DATA
	(Unaudited)
	(Dollars in thousands)
					2018				2017												1st Quarter
					First				Fourth			Third			Second			First			'18 vs. '17
					Quarter				Quarter			Quarter			Quarter			Quarter			Change
	Non-performing Loans			$	120,081				115,561			97,838			159,317			158,366			(24.2	)%
	Impaired Loans Held for Sale (1)				6,591				11,278			30,197			127			8,442			(21.9	)
	Other Real Estate				4,496				3,758			10,551			19,476			20,425			(78.0	)
	Non-performing Assets				131,168				130,597			138,586			178,920			187,233			(29.9	)
	Allowance for loan losses				257,764				249,268			249,683			248,095			253,514			1.7
	Net Charge-Offs - Quarter				4,280				8,979			38,099			15,678			6,919
	Net Charge-Offs / Average Loans - Quarter (2)				0.07	%			0.15			0.62			0.26			0.12
	Non-performing Loans / Loans				0.48				0.47			0.40			0.65			0.65
	Non-performing Assets / Loans, Impaired Loans Held for Sale, & ORE				0.53				0.53			0.57			0.73			0.77
	Allowance / Loans				1.04				1.01			1.02			1.02			1.05
	Allowance / Non-performing Loans				214.66				215.70			255.20			155.72			160.08
	Allowance / Non-performing Loans (3)				241.49				238.44			336.35			217.07			204.94
	Past Due Loans over 90 days and Still Accruing			$	5,416				4,414			5,685			4,550			2,777			95.0
	As a Percentage of Loans Outstanding				0.02	%			0.02			0.02			0.02			0.01
	Total Past Due Loans and Still Accruing			$	54,150				52,032			84,853			66,788			62,137			(12.9	)
	As a Percentage of Loans Outstanding				0.22	%			0.21			0.35			0.27			0.26
	Accruing Troubled Debt Restructurings (TDRs)			$	129,394				151,271			166,918			167,395			172,421			(25.0	)
	(1) Represent impaired loans that have been specifically identified to be sold. Impaired loans held for sale are carried at the lower of cost or fair value, less costs to sell, based primarily on estimated sales proceeds net of selling costs.
	(2) Ratio is annualized.
	(3) Excludes non-performing loans for which the expected loss has been charged off.
	SELECTED CAPITAL INFORMATION (1)
	(Unaudited)
	(Dollars in thousands)
					March 31, 2018				December 31, 2017			March 31, 2017
	Tier 1 Capital			$	2,924,284				2,872,001			2,758,794
	Total Risk-Based Capital				3,443,096				3,383,081			3,274,612
	Common Equity Tier 1 Ratio (transitional)				10.11	%			9.99			9.86
	Common Equity Tier 1 Ratio (fully phased-in) (5)				10.01				9.88			9.63
	Tier 1 Capital Ratio				10.51				10.38			10.18
	Total Risk-Based Capital Ratio				12.37				12.23			12.08
	Tier 1 Leverage Ratio				9.37				9.19			9.13
	Common Equity as a Percentage of Total Assets (2)				8.99				9.08			9.24
	Tangible Common Equity as a Percentage of Tangible Assets (3) (5)				8.79				8.88			9.04
	Book Value Per Common Share (4)			$	23.85				23.85			23.19
	Tangible Book Value Per Common Share (3)				23.27				23.27			22.62
	(1) Current quarter regulatory capital information is preliminary.
	(2) Common equity consists of Total Shareholders' Equity less Preferred Stock.
	(3) Excludes the carrying value of goodwill and other intangible assets from common equity and total assets.
	(4) Book Value Per Common Share consists of Total Shareholders' Equity less Preferred Stock divided by total common shares outstanding.
	(5) See "Non-GAAP Financial Measures" of this report for applicable reconciliation of GAAP measures.

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