Synovus Financial (SNV) 8-K Synovus Announces Earnings for the Third Quarter 2018

Synovus								Exhibit 99.2
	INCOME STATEMENT DATA
	(Unaudited)	Nine Months Ended
	(Dollars in thousands, except per share data)	September 30,
		2018			2017			% Change
	Interest income	$	986,911		$	855,563		15.4	%
	Interest expense	136,431			101,966			33.8
	Net interest income	850,480			753,597			12.9
	Provision for loan losses	39,548			58,620			(32.5	)
	Net interest income after provision for loan losses	810,932			694,977			16.7
	Non-interest income:
	Service charges on deposit accounts	60,521			61,048			(0.9	)
	Fiduciary and asset management fees	40,881			37,290			9.6
	Card fees	31,640			29,614			6.8
	Brokerage revenue	26,924			21,947			22.7
	Mortgage banking income	15,177			17,151			(11.5	)
	Income from bank-owned life insurance	11,720			9,560			22.6
	Cabela's Transaction Fee	—			75,000			nm
	Investment securities losses, net	(1,296		)	(289		)	nm
	Decrease in fair value of private equity investments, net	(2,659		)	(3,193		)	nm
	Other fee income	14,387			16,127			(10.8	)
	Other non-interest income	14,806			11,719			26.3
	Total non-interest income	212,101			275,974			(23.1	)
	Non-interest expense:
	Salaries and other personnel expense	339,924			322,079			5.5
	Net occupancy and equipment expense	96,222			89,837			7.1
	Third-party processing expense	43,822			39,882			9.9
	FDIC insurance and other regulatory fees	19,765			20,723			(4.6	)
	Professional fees	18,087			20,048			(9.8	)
	Advertising expense	14,046			14,868			(5.5	)
	Foreclosed real estate expense, net	1,110			10,847			(89.8	)
	Earnout liability adjustments	11,652			3,766			nm
	Merger-related expense	6,684			110			nm
	Amortization of intangibles	875			767			14.1
	Valuation adjustment to Visa derivative	2,328			—			nm
	Litigation settlement/contingency expense	(4,026		)	401			nm
	Restructuring charges, net	(191		)	7,043			nm
	Other operating expenses	69,233			64,409			7.5
	Total non-interest expense	619,531			594,780			4.2
	Income before income taxes	403,502			376,171			7.3
	Income tax expense	80,095			130,303			(38.5	)
	Net income	323,407			245,868			31.5
	Preferred stock dividends and redemption	14,848			7,678			93.4
	Net income available to common shareholders	$	308,559		238,190			29.5	%
	Net income per common share, basic	$	2.61		1.96			33.6	%
	Net income per common share, diluted	2.60			1.94			33.7
	Cash dividends declared per common share	0.75			0.45			66.7
	Return on average assets*	1.37		%	1.07			30	bps
	Return on average common equity*	14.65			11.20			345
	Weighted average common shares outstanding, basic	118,096			121,796			(3.0	)%
	Weighted average common shares outstanding, diluted	118,847			122,628			(3.1	)
	nm - not meaningful
	bps - basis points
	* - ratios are annualized

Synovus
	INCOME STATEMENT DATA
	(Unaudited)
	(In thousands, except per share data)	2018							2017
		Third			Second		First		Fourth		Third		Year/Year
		Quarter			Quarter		Quarter		Quarter		Quarter		% Change
	Interest income	$	343,942		329,834		313,134		306,934		297,652		15.6	%
	Interest expense	52,323			45,257		38,850		37,221		35,080		49.2
	Net interest income	291,619			284,577		274,284		269,713		262,572		11.1
	Provision for loan losses	14,982			11,790		12,776		8,565		39,686		(62.2	)
	Net interest income after provision for loan losses	276,637			272,787		261,508		261,148		222,886		24.1
	Non-interest income:
	Service charges on deposit accounts	20,582			19,999		19,940		20,372		20,678		(0.5	)
	Fiduciary and asset management fees	13,462			13,983		13,435		13,195		12,615		6.7
	Card fees	10,608			10,833		10,199		9,762		9,729		9.0
	Brokerage revenue	9,329			8,900		8,695		7,758		7,511		24.2
	Mortgage banking income	5,290			4,839		5,047		5,645		5,603		(5.6	)
	Income from bank-owned life insurance	3,771			3,733		4,217		3,900		3,232		16.7
	Cabela's Transaction Fee	—			—		—		—		75,000		nm
	Investment securities losses, net	—			(1,296	)	—		—		(7,956	)	nm
	Increase/(decrease) in fair value of private equity investments, net	434			(37	)	(3,056	)	100		(27	)	nm
	Other fee income	4,510			5,259		4,618		4,042		5,094		(11.5	)
	Other non-interest income	3,682			7,174		3,951		4,578		3,956		(6.9	)
	Total non-interest income	71,668			73,387		67,046		69,352		135,435		(47.1	)
	Non-interest expense:
	Salaries and other personnel expense	114,341			111,863		113,720		111,243		109,675		4.3
	Net occupancy and equipment expense	32,088			32,654		31,480		30,126		30,573		5.0
	Third-party processing expense	14,810			15,067		13,945		14,827		13,659		8.4
	FDIC insurance and other regulatory fees	6,430			6,543		6,793		6,288		7,078		(9.2	)
	Professional fees	6,298			6,284		5,505		6,183		7,141		(11.8	)
	Advertising expense	3,735			5,220		5,092		8,081		3,610		3.5
	Foreclosed real estate expense, net	360			(107	)	856		1,693		7,265		(95.0	)
	Earnout liability adjustments	11,652			—		—		1,700		2,059		nm
	Merger-related expense	6,684			—		—		—		23		nm
	Amortization of intangibles	292			292		292		292		292		—
	Valuation adjustment to Visa derivative	—			2,328		—		—		—		—
	Loss on early extinguishment of debt	—			—		—		23,160		—		—
	Litigation settlement/contingency expense	—			(1,400	)	(2,626	)	300		401		nm
	Restructuring charges, net	21			103		(315	)	(29	)	519		(96.0	)
	Other operating expenses	23,586			25,210		20,437		22,670		23,351		1.0
	Total non-interest expense	220,297			204,057		195,179		226,534		205,646		7.1
	Income before income taxes	128,008			142,117		133,375		103,966		152,675		(16.2	)
	Income tax expense	18,949			30,936		30,209		74,361		54,668		(65.3	)
	Net income	109,059			111,181		103,166		29,605		98,007		11.3
	Preferred stock dividends and redemption	9,729			2,559		2,559		2,559		2,559		nm
	Net income available to common shareholders	$	99,330		108,622		100,607		27,046		95,448		4.1	%
	Net income per common share, basic	$	0.85		0.92		0.85		0.23		0.79		7.3	%
	Net income per common share, diluted	0.84			0.91		0.84		0.23		0.78		7.3
	Cash dividends declared per common share	0.25			0.25		0.25		0.15		0.15		66.7
	Return on average assets *	1.36		%	1.42		1.34		0.37		1.27		9	bps
	Return on average common equity *	13.95			15.39		14.62		3.76		13.24		71
	Weighted average common shares outstanding, basic	117,241			118,397		118,666		119,282		120,900		(3.0	)%
	Weighted average common shares outstanding, diluted	118,095			119,139		119,321		120,182		121,814		(3.1	)
	nm - not meaningful
	bps - basis points
	* - ratios are annualized

Synovus
	BALANCE SHEET DATA	September 30, 2018			December 31, 2017		September 30, 2017
	(Unaudited)
	(In thousands, except share data)
	ASSETS
	Cash and due from banks	$	436,540		397,848		386,459
	Interest bearing funds with Federal Reserve Bank	515,493			460,928		1,297,581
	Interest earning deposits with banks	34,470			26,311		6,047
	Federal funds sold and securities purchased
	under resale agreements	25,430			47,846		48,820
	Cash and cash equivalents	1,011,933			932,933		1,738,907
	Mortgage loans held for sale, at fair value	37,276			48,024		54,072
	Investment securities available for sale, at fair value	3,883,574			3,987,069		3,825,443
	Loans, net of deferred fees and costs	25,577,116			24,787,464		24,487,360
	Allowance for loan losses	(251,450		)	(249,268	)	(249,683	)
	Loans, net	25,325,666			24,538,196		24,237,677
	Cash surrender value of bank-owned life insurance	551,061			540,958		536,985
	Premises and equipment, net	431,012			426,813		423,245
	Goodwill	57,315			57,315		57,315
	Other intangible assets	10,166			11,254		11,548
	Deferred tax asset, net	185,116			165,788		272,052
	Other assets	582,001			513,487		484,879
	Total assets	$	32,075,120		31,221,837		31,642,123
	LIABILITIES AND SHAREHOLDERS' EQUITY
	Liabilities:
	Deposits:
	Non-interest bearing deposits	$	7,628,736		7,686,339		7,302,682
	Interest-bearing deposits	18,804,922			18,461,561		18,883,546
	Total deposits	26,433,658			26,147,900		26,186,228
	Federal funds purchased and securities sold under repurchase	191,145			161,190		141,539
	agreements
	Other short-term borrowings	478,540			100,000		—
	Long-term debt	1,656,909			1,606,138		1,882,607
	Other liabilities	274,795			245,043		434,671
	Total liabilities	29,035,047			28,260,271		28,645,045
	Shareholders' equity:
	Series D Preferred Stock - no par value. 8,000,000 shares outstanding at September 30, 2018	195,138			—		—
	Series C Preferred Stock - no par value. 5,200,000 shares outstanding at December 31, 2017 and September 30, 2017	—			125,980		125,980
	Common stock - $1.00 par value. 116,714,463 shares outstanding at September 30, 2018, 118,897,295 shares outstanding at December 31, 2017, and 119,566,625 shares outstanding at September 30, 2017	143,093			142,678		142,525
	Additional paid-in capital	3,049,233			3,043,129		3,033,682
	Treasury stock, at cost - 26,378,854 shares at September 30, 2018, 23,780,154 shares at December 31, 2017, and 22,958,514 shares at September 30, 2017	(974,478		)	(839,674	)	(800,509	)
	Accumulated other comprehensive loss	(143,720		)	(54,754	)	(39,596	)
	Retained earnings	770,807			544,207		534,996
	Total shareholders' equity	3,040,073			2,961,566		2,997,078
	Total liabilities and shareholders' equity	$	32,075,120		31,221,837		31,642,123

Synovus
	AVERAGE BALANCES AND YIELDS/RATES (1)
	(Unaudited)
	(Dollars in thousands)
		2018							2017
		Third  Quarter			Second  Quarter		First Quarter		Fourth  Quarter		Third  Quarter
	Interest Earning Assets
	Taxable investment securities (2)	$	4,061,239		4,077,564		4,097,162		3,937,278		3,786,436
	Yield	2.38		%	2.34		2.34		2.29		2.11
	Tax-exempt investment securities(2)(4)	$	89		115		140		180		259
	Yield (taxable equivalent)	5.91		%	6.87		6.57		7.97		7.86
	Trading account assets(5)	$	16,646		23,772		8,167		7,360		7,823
	Yield	2.52		%	2.79		2.66		2.78		2.09
	Commercial loans(3)(4)	$	19,025,830		18,857,271		18,963,515		18,935,774		19,059,936
	Yield	4.98		%	4.85		4.64		4.49		4.41
	Consumer loans(3)	$	6,298,643		6,092,899		5,899,015		5,704,629		5,440,765
	Yield	4.80		%	4.76		4.71		4.54		4.55
	Allowance for loan losses	$	(251,684	)	(257,966	)	(251,635	)	(252,319	)	(249,248	)
	Loans, net(3)	$	25,072,789		24,692,204		24,610,895		24,388,084		24,251,453
	Yield	4.99		%	4.88		4.70		4.55		4.49
	Mortgage loans held for sale	$	49,030		50,366		38,360		45,353		52,177
	Yield	4.71		%	4.42		3.95		3.96		3.88
	Federal funds sold, due from Federal Reserve Bank, and other short-term investments	$	544,704		724,537		516,575		922,296		543,556
	Yield	1.90		%	1.77		1.48		1.31		1.23
	Federal Home Loan Bank and Federal Reserve Bank Stock(5)	$	163,568		165,845		177,381		159,455		175,263
	Yield	4.41		%	4.63		3.39		4.03		3.50
	Total interest earning assets	$	29,908,065		29,734,403		29,448,680		29,460,006		28,816,967
	Yield	4.58		%	4.47		4.31		4.15		4.11
	Interest Bearing Liabilities
	Interest bearing demand deposits	$	4,701,204		5,001,826		5,032,000		4,976,239		4,868,372
	Rate	0.38		%	0.35		0.31		0.28		0.27
	Money Market accounts	$	7,936,621		7,791,107		7,561,554		7,514,992		7,528,036
	Rate	0.72		%	0.55		0.43		0.36		0.34
	Savings deposits	$	824,935		829,800		811,587		804,853		803,184
	Rate	0.03		%	0.03		0.03		0.03		0.03
	Time deposits under $100,000	$	1,205,987		1,161,890		1,143,780		1,166,413		1,183,582
	Rate	0.99		%	0.82		0.71		0.70		0.68
	Time deposits over $100,000	$	2,273,582		2,021,084		1,895,545		2,004,031		2,067,347
	Rate	1.46		%	1.22		1.02		0.99		0.97
	Non-maturing brokered deposits	$	358,277		262,976		424,118		546,413		547,466
	Rate	2.10		%	1.94		1.14		0.81		0.73
	Brokered time deposits	$	1,414,700		1,659,941		1,527,793		1,651,920		983,423
	Rate	1.94		%	1.85		1.75		1.63		1.16
	Total interest-bearing deposits	$	18,715,306		18,728,624		18,396,377		18,664,861		17,981,410
	Rate	0.83		%	0.70		0.58		0.54		0.46
	Federal funds purchased and securities sold under repurchase agreements	$	230,504		207,655		202,226		184,369		191,585
	Rate	0.25		%	0.35		0.21		0.15		0.08
	Other short-term borrowings	$	146,794		3,024		394,056		3,261		102,717
	Rate	2.12		%	2.84		1.52		1.42		1.16
	Long-term debt	$	1,656,743		1,852,094		1,733,938		1,710,721		1,882,458
	Rate	2.87		%	2.66		2.51		2.67		2.90
	Total interest-bearing liabilities	$	20,749,347		20,791,397		20,726,597		20,563,212		20,158,170
	Rate	0.99		%	0.87		0.76		0.72		0.69
	Non-interest bearing demand deposits	$	7,672,006		7,539,451		7,391,695		7,621,147		7,305,508
	Effective cost of funds	0.69		%	0.61		0.53		0.50		0.48
	Net interest margin	3.89		%	3.86		3.78		3.65		3.63
	Taxable equivalent adjustment	$	136		120		116		234		283
	(1)     Yields and rates are annualized.
	(2)     Excludes net unrealized gains and losses.
	(3)    Average loans are shown net of unearned income. Non-performing loans are included.
	(4)     Reflects taxable-equivalent adjustments, using the statutory federal income tax rate (21% in 2018 and 35% in 2017), in adjusting interest on tax-exempt loans and investment securities to a taxable equivalent basis.
	(5)     Included as a component of Other Assets on the consolidated balance sheet.

Synovus
LOANS OUTSTANDING BY TYPE
(Unaudited)
(Dollars in thousands)
	Total Loans			Total Loans		Linked Quarter		Total Loans			Year/Year
Loan Type	September 30, 2018			June 30, 2018		% Change (1)		September 30, 2017			% Change
Commercial, Financial, and Agricultural	$	7,281,466		7,271,080		0.6	%	$	6,961,709		4.6	%
Owner-Occupied	5,221,828			5,004,392		17.2		4,765,433			9.6
Total Commercial & Industrial	12,503,294			12,275,472		7.4		11,727,142			6.6
Multi-Family	1,330,006			1,358,211		(8.2	)	1,636,449			(18.7	)
Hotels	760,885			755,125		3.0		832,990			(8.7	)
Office Buildings	1,368,608			1,429,166		(16.8	)	1,576,672			(13.2	)
Shopping Centers	815,696			811,186		2.2		840,367			(2.9	)
Warehouses	679,184			602,707		50.3		494,570			37.3
Other Investment Property	711,311			553,201		113.4		544,048			30.7
Total Investment Properties	5,665,690			5,509,596		11.2		5,925,096			(4.4	)
1-4 Family Construction	183,044			177,140		13.2		195,273			(6.3	)
1-4 Family Investment Mortgage	524,152			543,570		(14.2	)	599,342			(12.5	)
Total 1-4 Family Properties	707,196			720,710		(7.4	)	794,615			(11.0	)
Commercial Development	61,608			61,375		1.5		66,521			(7.4	)
Residential Development	91,578			100,246		(34.3	)	117,878			(22.3	)
Land Acquisition	186,334			252,244		(103.7	)	322,814			(42.3	)
Land and Development	339,520			413,865		(71.3	)	507,213			(33.1	)
Total Commercial Real Estate	6,712,406			6,644,171		4.1		7,226,924			(7.1	)
Consumer Mortgages	2,843,244			2,750,935		13.3		2,557,680			11.2
Home Equity Lines	1,465,419			1,453,855		3.2		1,528,889			(4.2	)
Credit Cards	245,149			238,424		11.2		225,726			8.6
Other Consumer Loans	1,831,385			1,793,916		8.3		1,245,277			47.1
Total Consumer	6,385,197			6,237,130		9.4		5,557,572			14.9
Unearned Income	(23,781		)	(22,717	)	18.6		(24,278		)	(2.0	)
Total	$	25,577,116		25,134,056		7.0	%	$	24,487,360		4.5	%
(1) Percentage change is annualized.
NON-PERFORMING LOANS COMPOSITION
(Unaudited)
(Dollars in thousands)
	Total			Total				Total
	Non-performing			Non-performing		Linked Quarter		Non-performing			Year/Year
Loan Type	Loans			Loans		% Change		Loans			% Change
	September 30, 2018			June 30, 2018				September 30, 2017
Commercial, Financial, and Agricultural	$	69,010		81,231		(15.0	)%	$	58,139		18.7	%
Owner-Occupied	5,708			6,076		(6.1	)	3,960			44.1
Total Commercial & Industrial	74,718			87,307		(14.4	)	62,099			20.3
Multi-Family	234			176		33.0		1,096			(78.6	)
Hotels	—			—		—		—			—
Office Buildings	166			670		(75.2	)	234			(29.1	)
Shopping Centers	89			412		(78.4	)	327			(72.8	)
Warehouses	—			21		nm		38			nm
Other Investment Property	1,666			459		263.0		367			nm
Total Investment Properties	2,155			1,738		24.0		2,062			4.5
1-4 Family Investment Mortgage	3,139			3,247		(3.3	)	2,712			15.7
Total 1-4 Family Properties	3,139			3,247		(3.3	)	2,712			15.7
Commercial Development	42			42		—		47			(10.6	)
Residential Development	3,184			3,184		—		4,720			(32.5	)
Land Acquisition	1,603			1,398		14.7		2,161			(25.8	)
Land and Development	4,829			4,624		4.4		6,928			(30.3	)
Total Commercial Real Estate	10,123			9,609		5.3		11,702			(13.5	)
Consumer Mortgages	5,313			4,822		10.2		6,332			(16.1	)
Home Equity Lines	14,498			14,265		1.6		15,638			(7.3	)
Other Consumer Loans	3,773			1,325		184.8		2,067			82.5
Total Consumer	23,584			20,412		15.5		24,037			(1.9	)
Total	$	108,425		117,328		(7.6	)%	$	97,838		10.8	%

Synovus
	CREDIT QUALITY DATA
	(Unaudited)
	(Dollars in thousands)	2018					2017
		Third			Second	First	Fourth	Third	Year/Year % change
		Quarter			Quarter	Quarter	Quarter	Quarter
	Non-performing Loans	$	108,425		117,328	120,081	115,561	97,838	10.8	%
	Impaired Loans Held for Sale (1)	12			2,733	6,591	11,278	30,197	nm
	Other Real Estate	8,542			6,288	4,496	3,758	10,551	(19.0	)
	Non-performing Assets	116,979			126,349	131,168	130,597	138,586	(15.6	)
	Allowance for loan losses	251,450			251,725	257,764	249,268	249,683	0.7
	Net Charge-Offs - Quarter	15,257			17,829	4,280	8,979	38,099
	Net Charge-Offs - YTD	37,366			22,109	4,280	69,675	60,695
	Net Charge-Offs / Average Loans - Quarter (2)	0.24		%	0.29	0.07	0.15	0.62
	Net Charge-Offs / Average Loans - YTD (2)	0.20			0.18	0.07	0.29	0.33
	Non-performing Loans / Loans	0.42			0.47	0.48	0.47	0.40
	Non-performing Assets / Loans, Impaired Loans Held for Sale, & ORE	0.46			0.50	0.53	0.53	0.57
	Allowance / Loans	0.98			1.00	1.04	1.01	1.02
	Allowance / Non-performing Loans	231.91			214.55	214.66	215.70	255.20
	Allowance / Non-performing Loans (3)	288.21			262.99	241.49	238.44	336.35
	Past Due Loans over 90 days and Still Accruing	$	4,856		3,222	5,416	4,414	5,685	(14.6	)
	As a Percentage of Loans Outstanding	0.02		%	0.01	0.02	0.02	0.02
	Total Past Due Loans and Still Accruing	$	78,323		55,614	54,150	52,032	84,853	(7.7	)
	As a Percentage of Loans Outstanding	0.31		%	0.22	0.22	0.21	0.35
	Accruing Troubled Debt Restructurings (TDRs)	$	114,740		125,310	129,394	151,271	166,918	(31.3	)
	(1) Represent impaired loans that have been specifically identified to be sold. Impaired loans held for sale are carried at the lower of cost or fair value, less costs to sell, based primarily on estimated sales proceeds net of selling costs.
	(2) Ratio is annualized.
	(3) Excludes non-performing loans for which the expected loss has been charged off.
	SELECTED CAPITAL INFORMATION (1)
	(Unaudited)
	(Dollars in thousands)
		September 30, 2018			December 31, 2017	September 30, 2017
	Tier 1 Capital	$	3,038,769		2,872,001	2,849,580
	Total Risk-Based Capital	3,550,687			3,383,081	3,362,127
	Common Equity Tier 1 Ratio (transitional)	9.92		%	9.99	10.06
	Common Equity Tier 1 Ratio (fully phased-in) (5)	9.87			9.88	9.88
	Tier 1 Capital Ratio	10.59			10.38	10.43
	Total Risk-Based Capital Ratio	12.37			12.23	12.30
	Tier 1 Leverage Ratio	9.58			9.19	9.34
	Common Equity as a Percentage of Total Assets (2)	8.87			9.08	9.07
	Tangible Common Equity as a Percentage of Tangible Assets (3) (5)	8.68			8.88	8.88
	Book Value Per Common Share (4)	$	24.38		23.85	24.01
	Tangible Book Value Per Common Share (3)	23.80			23.27	23.44
	(1) Current quarter regulatory capital information is preliminary.
	(2) Common equity consists of Total Shareholders' Equity less Preferred Stock.
	(3) Excludes the carrying value of goodwill and other intangible assets from common equity and total assets.
	(4) Book Value Per Common Share consists of Total Shareholders' Equity less Preferred Stock divided by total common shares outstanding.
	(5) See "Non-GAAP Financial Measures" of this report for applicable reconciliation of GAAP measures.