The parent company of Synovus Bank today reported higher-than-expected results in the fourth quarter with profits up 32.7 percent from a year ago after adjustments for one-time debt and tax-related changes.
Synovus Financial Corp. said it is raising its quarterly dividend this year by 67 percent to 25 cents per share, payable in April, even as the bank also announced it has authorized a stock repurchase program of up to $150 million for the year ahead.
Synovus, which is based in Columbus, Ga., and operates in Chattanooga and Northwest Georgia, said its fourth-quarter profit of $29.6 million, or 23 cents per share, was down from the $68.5 million earned a year ago due to $23.2 million loss due to extinguishing some debt and a $47.2 million charge related to federal tax reform. But without the one-time expenses, the adjusted earnings in the fourth quarter jumped to 72 cents per share, or 4 cents per share better than what analysts had forecast for the period.
Synovus posted revenue of $376.3 million in the fourth quarter. Its adjusted revenue was $339.1 million, also exceeding Street forecasts.
For the year, the company reported profit of $275.5 million, or $2.17 per share. Revenue was reported as $1.37 billion.
Kessel Stelling, Synovus chairman and CEO, called 2017 "another outstanding year with strong financial and operating results," including an adjusted return on assets of 1.04 percent and an adjusted return on equity of 10.86 percent.
In an 2018 Economic Outlook to Chattanooga business leaders today, Synovus's Chattanooga market president Mike Sarvis said Synovus completed its rebranding in Chattanooga from the former Cohutta Bank in November as the first of such bank name changes across Synovus's 5-state footprint. The rebranding is scheduled to be completed by June with the last branches taking on the Synovus brand in South Carolina.
The name change helps bring a single identify to the banks that the Columbus, Ga.-based Synovus has acquired over the past few decades and capitalizes on Synovus' improving reputation.
Last year, the Reputation Institute and American Banker named Synovus as one of country's most reputable banks.
"We are pleased to begin 2018 by announcing a 67 percent increase in our common dividend, and our team is energized as we intensify our focus on improving the customer experience and complete the transition to a unified Synovus brand," Stelling said in announcing today's earnings.
In response to the earnings announcement, Synovus shares were trading higher this morning.
Synovus shares have climbed nearly 6 percent since the beginning of the year. The stock has increased 23 percent in the last 12 months.