Synovus Financial in Columbus, Ga., reported higher second-quarter earnings on solid growth in revenue and loans for investment properties.
The $29.5 billion-asset company said on Tuesday that it had earned $57.9 million, up almost 9% from a year earlier. Total revenues jumped 7% to $289.3 million as net interest income improved.
"Our second-quarter results demonstrate continued solid performance, including strong revenue growth and further diversification of our loan portfolio with increases in both [commercial and industrial] and consumer lending," Kessel D. Stelling, chairman and chief executive at Synovus, said in a press release.
Net interest income was $221.4 million, up nearly 9% from a year earlier. Total loans grew by more than 7%, to $23.1 billion, partly driven by a 10% jump in loans for investment properties. That included a 19% increase in the multifamily portfolio to $1.5 billion. One- to four-family construction climbed more than 27% to $208.9 million. The net interest margin improved 12 basis points to 3.27%.
Noninterest income fell more than 1%, to $67.9 million, as mortgage banking income declined almost 21% to $5.9 million. Fiduciary and asset management fees declined roughly 2% to $11.6 million, while bankcard fees dropped almost 2% to $8.3 million.
Noninterest expenses were $188.6 million, up about 6%. Synovus's advertising expenses swelled by almost 157% to $7.4 million, and professional fees increased roughly 8% to $6.9 million.
