Synovus Financial in Columbus, Ga., rode gains in consumer and other lending and a one-time transaction fee to a 52% increase in third-quarter profits.
The $31.6 billion-asset company reported net income of $95.4 million in the quarter, up from $62.7 million a year earlier. Adjusted earnings per share were 65 cents, in line with analysts’ average estimate, according to FactSet Research Systems.
“Our third-quarter results reflect solid execution and steady progress toward achieving our strategic priorities,” Synovus Chairman and CEO Kessel Stelling said. He highlighted a 1.05% adjusted return on assets, a sub-59% adjusted efficiency ratio and improving credit quality.
Stellling added that the company’s recently completed acquisition of $1.1 billion of deposits from the retailer Cabela’s would provide “additional liquidity to fund organic growth and [has] enabled the acceleration of additional balance sheet restructuring actions with longer term financial benefit.”
Noninterest income nearly doubled to $135.4 million. That figure included a $75 million transaction fee Synovus received in selling Cabela's credit card assets to Capital One Financial.
Meanwhile, Synovus' net interest income totaled $262.6 million, up 16.2%. The net interest margin expanded 36 basis points to 3.63%.
Total loans increased 5.3% to $24.49 billion. Consumer lending increased 15.6% to $5.5 billion, and commercial and industrial lending increased 6.5% to $11.7 billion.
Nonperforming loans declined by $50.3 million to $97.8 million, and the ratio of nonperforming loans to total loans declined to 0.40% from 0.64%.
Total deposits increased 8.2% to $26.2 billion.