Synovus Financial Corp. (NYSE: SNV) stock fell over 2.7% on 15th January, 2019 (Source: Google finance) after the company missed the analysts’ estimates for the fourth quarter of 2018. Net income available to common shareholders for the fourth quarter 2018 was $101.9 million as compared to $99.3 million for the third quarter 2018 and $27.0 million for the fourth quarter 2017. Net interest income was $297.9 million, up $6.3 million or 2.2% from the previous quarter and up $28.2 million or 10.5% from the fourth quarter 2017. Net interest margin was 3.92%, up 3 basis points from the previous quarter.
SNV in the fourth quarter of FY 18 has reported the adjusted earnings per share of 92 cents, missing the analysts’ estimates for the adjusted earnings per share of 94 cents, as per Zacks Investment Research. The company had reported the adjusted revenue growth of 8.5 percent to $368.2 million in the fourth quarter of FY 18, missing the analysts’ estimates for revenue of $370.8 million.
Return on average assets for 2018 was 1.35%, an increase of 46 basis points from 2017. Return on average common equity for 2018 was 14.55%, an increase of 523 basis points from 2017. Total loans ended the year at $25.95 billion, an increase of $1.16 billion or 4.7% from 2017. Total average loans for the year grew $813.1 million or 3.3% as compared to 2017. Total average deposits grew $969.7 million or 3.8% as compared to 2017. Efficiency ratio of 57.99% improved 196 basis points from 2017. The non-performing asset ratio was 0.44% at December 31, 2018, compared to 0.53% at year-end 2017. Common Equity Tier 1 ratio was 10.04% at December 31, 20181, compared to 9.99% at December 31, 2017.
SNV has announced plans to return approximately $500 million to common shareholders in the current year through a 20% dividend increase and additional share repurchases. During the fourth quarter, the Company repurchased $40 million in common stock as part of the $25 million repurchase program announced in December 2018 and the $150 million share repurchase program announced in January 2018. Share repurchases in 2018 totaled $175 million and resulted in a reduction of 3.7 million shares, a 3.1% share count reduction from December 31, 2017. Additionally, the company has authorized a new share repurchase program of up to $400 million of the Company’s common stock to be executed during 2019. The company currently expects to repurchase $300-$350 million under this authorization in 2019.