Synovus profit surges on 8% rise in revenue
Synovus Financial in Columbus, Ga., reported higher fourth-quarter profit on growth in business loans and mortgage banking.
Net income at the $30 billion-asset company rose 18% to $66 million, or 54 cents per share. Total revenue rose 8% to $302 million.
Net interest income rose 10% to $227.3 million as loans rose 6% to $24 billion on expansion in commercial-and-industrial, multifamily and residential-mortgage lending. The loan total included $357 million of loans acquired via Synovus' Global One acquisition in October.
Noninterest income rose 12% to $74 million on higher mortgage banking.
Noninterest expense rose 6% to $193 million on higher salaries and third-party processing expense. Expenses also rose because Synovus recorded a $4.7 million fair value adjustment to its Visa derivative, and it booked $1.1 million of merger-related costs. Professional fees dropped 17% to $7 million, and net foreclosed real estate expense fell 36% to $3 million.
However, Synovus' income tax expense rose 6% to $39.5 million.