Exhibit 99.2
SYNOVUS FINANCIAL CORP.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME INFORMATION
For the Nine Months Ended September 30, 2007
(Unaudited)
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME INFORMATION
For the Nine Months Ended September 30, 2007
(Unaudited)
Synovus Financial Corp. | Pro Forma | Synovus Financial Corp. | ||||||||||
(In thousands, except per share data) | As previously reported | Adjustments (a) | Pro Forma | |||||||||
Interest income: | ||||||||||||
Loans, including fees | $ | 1,540,909 | — | $ | 1,540,909 | |||||||
Investment securities available for sale | 127,742 | — | 127,742 | |||||||||
Trading account assets | 2,890 | — | 2,890 | |||||||||
Mortgage loans held for sale | 8,006 | — | 8,006 | |||||||||
Federal funds sold and securities purchased under resale agreements | 4,062 | 91 | 4,153 | |||||||||
Interest earning deposits with banks | 1,008 | — | 1,008 | |||||||||
Total interest income | 1,684,617 | 91 | 1,684,708 | |||||||||
Interest expense: | ||||||||||||
Deposits | 685,620 | 10,271 | 695,891 | |||||||||
Federal funds purchased and other short-term liabilities | 64,923 | 914 | 65,837 | |||||||||
Long-term debt | 61,741 | (1,024 | ) | 60,717 | ||||||||
Total interest expense | 812,284 | 10,161 | 822,445 | |||||||||
Net interest income | 872,333 | (10,070 | ) | 862,263 | ||||||||
Provision for losses on loans | 99,566 | — | 99,566 | |||||||||
Net interest income after provision for losses on loans | 772,767 | (10,070 | ) | 762,697 | ||||||||
Non-interest income: | ||||||||||||
Electronic payment processing services | 710,648 | (710,648 | ) | — | ||||||||
Merchant acquiring services | 190,120 | (190,120 | ) | — | ||||||||
Other transaction processing services | 161,911 | (161,911 | ) | — | ||||||||
Service charges on deposit accounts | 83,157 | — | 83,157 | |||||||||
Fiduciary and asset management fees | 37,002 | 650 | 37,652 | |||||||||
Brokerage and investment banking income | 23,381 | — | 23,381 | |||||||||
Mortgage banking income | 20,876 | — | 20,876 | |||||||||
Bankcard fees | 35,370 | — | 35,370 | |||||||||
Securities gains, net | 891 | — | 891 | |||||||||
Other fee income | 29,749 | — | 29,749 | |||||||||
Other operating income | 55,337 | 3,616 | 58,953 | |||||||||
Non-interest income before reimbursable items | 1,348,442 | (1,058,413 | ) | 290,029 | ||||||||
Reimbursable items | 279,727 | (279,727 | ) | — | ||||||||
Total non-interest income | 1,628,169 | (1,338,140 | ) | 290,029 | ||||||||
Non-interest expense: | ||||||||||||
Salaries and other personnel expense | 777,842 | (432,149 | ) | 345,693 | ||||||||
Net occupancy and equipment expense | 284,556 | (201,645 | ) | 82,911 | ||||||||
Other operating expenses | 302,637 | (138,356 | ) | 164,281 | ||||||||
Spin-off related expenses | 6,298 | (6,298 | ) | — | ||||||||
Visa litigation settlement expense | 12,000 | — | 12,000 | |||||||||
Non-interest expense before reimbursable items | 1,383,333 | (778,448 | ) | 604,885 | ||||||||
Reimbursable items | 279,727 | (279,727 | ) | — | ||||||||
Total non-interest expense | 1,663,060 | (1,058,175 | ) | 604,885 | ||||||||
Minority interest in subsidiaries’ net income | 38,139 | (38,139 | ) | — | ||||||||
Income from continuing operations before income taxes | 699,737 | (251,896 | ) | 447,841 | ||||||||
Income tax expense | 259,491 | (101,443 | ) | 158,048 | ||||||||
Income from continuing operations | $ | 440,246 | (150,453 | ) | $ | 289,793 | ||||||
Income from continuing operations per share data: | ||||||||||||
Basic | $ | 1.35 | 0.89 | |||||||||
Diluted | $ | 1.33 | 0.88 | |||||||||
Weighted average shares outstanding: | ||||||||||||
Basic | 326,443 | 326,443 | ||||||||||
Diluted | 330,001 | 330,001 |
See introduction and accompanying notes to pro forma condensed consolidated financial statement information.
1
SYNOVUS FINANCIAL CORP.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME INFORMATION
For the Year Ended December 31, 2006
(Unaudited)
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME INFORMATION
For the Year Ended December 31, 2006
(Unaudited)
Synovus Financial Corp. | Pro Forma | Synovus Financial Corp. | ||||||||||
(In thousands, except per share data) | As previously reported | Adjustments (b) | Pro Forma | |||||||||
Interest income: | ||||||||||||
Loans, including fees | $ | 1,859,914 | — | $ | 1,859,914 | |||||||
Investment securities available for sale | 138,426 | — | 138,426 | |||||||||
Trading account assets | 2,691 | — | 2,691 | |||||||||
Mortgage loans held for sale | 8,638 | — | 8,638 | |||||||||
Federal funds sold and securities purchased under resale agreements | 6,422 | — | 6,422 | |||||||||
Interest earning deposits with banks | 375 | — | 375 | |||||||||
Total interest income | 2,016,466 | — | 2,016,466 | |||||||||
Interest expense: | ||||||||||||
Deposits | 739,949 | 6,720 | 746,669 | |||||||||
Federal funds purchased and other short-term liabilities | 71,439 | 1,518 | 72,957 | |||||||||
Long-term debt | 71,204 | (153 | ) | 71,051 | ||||||||
Total interest expense | 882,592 | 8,085 | 890,677 | |||||||||
Net interest income | 1,133,874 | (8,085 | ) | 1,125,789 | ||||||||
Provision for losses on loans | 75,148 | — | 75,148 | |||||||||
Net interest income after provision for losses on loans | 1,058,726 | (8,085 | ) | 1,050,641 | ||||||||
Non-interest income: | ||||||||||||
Electronic payment processing services | 985,868 | (985,868 | ) | — | ||||||||
Merchant acquiring services | 260,275 | (260,275 | ) | — | ||||||||
Other transaction processing services | 186,394 | (186,394 | ) | — | ||||||||
Service charges on deposit accounts | 112,417 | — | 112,417 | |||||||||
Fiduciary and asset management fees | 47,800 | 825 | 48,625 | |||||||||
Brokerage and investment banking income | 26,729 | — | 26,729 | |||||||||
Mortgage banking income | 29,255 | — | 29,255 | |||||||||
Bankcard fees | 44,303 | — | 44,303 | |||||||||
Securities losses, net | (2,118 | ) | — | (2,118 | ) | |||||||
Other fee income | 38,743 | — | 38,743 | |||||||||
Other operating income | 52,201 | 9,275 | 61,476 | |||||||||
Non-interest income before reimbursable items | 1,781,867 | (1,422,437 | ) | 359,430 | ||||||||
Reimbursable items | 351,719 | (351,719 | ) | — | ||||||||
Total non-interest income | 2,133,586 | (1,774,156 | ) | 359,430 | ||||||||
Non-interest expense: | ||||||||||||
Salaries and other personnel expense | 974,515 | (524,142 | ) | 450,373 | ||||||||
Net occupancy and equipment expense | 414,169 | (313,899 | ) | 100,270 | ||||||||
Other operating expenses | 430,274 | (216,384 | ) | 213,890 | ||||||||
Non-interest expense before reimbursable items | 1,818,958 | (1,054,425 | ) | 764,533 | ||||||||
Reimbursable items | 351,719 | (351,719 | ) | — | ||||||||
Total non-interest expense | 2,170,677 | (1,406,144 | ) | 764,533 | ||||||||
Minority interest in subsidiaries’ net income | 48,102 | (48,102 | ) | — | ||||||||
Income before income taxes | 973,533 | (327,995 | ) | 645,538 | ||||||||
Income tax expense | 356,616 | (126,181 | ) | 230,435 | ||||||||
Net income | $ | 616,917 | (201,814 | ) | $ | 415,103 | ||||||
Net income per share data: | ||||||||||||
Basic | $ | 1.92 | $ | 1.29 | ||||||||
Diluted | $ | 1.90 | $ | 1.28 | ||||||||
Weighted average shares outstanding: | ||||||||||||
Basic | 321,241 | 321,241 | ||||||||||
Diluted | 324,232 | 324,232 |
See introduction and accompanying notes to pro forma condensed consolidated financial statement information.
2
SYNOVUS FINANCIAL CORP.
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
As of September 30, 2007
(Unaudited)
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
As of September 30, 2007
(Unaudited)
Synovus Financial Corp. | Pro Forma | Synovus Financial Corp. | ||||||||||
(In thousands) | As previously reported | Adjustments (c) | Pro Forma | |||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 944,215 | 179,855 | $ | 1,124,070 | |||||||
Interest earning deposits with banks | 4,318 | — | 4,318 | |||||||||
Federal funds sold and securities purchased under resale agreements | 113,654 | — | 113,654 | |||||||||
Trading account assets | 33,009 | — | 33,009 | |||||||||
Mortgage loans held for sale | 165,837 | — | 165,837 | |||||||||
Investment securities available for sale | 3,628,766 | — | 3,628,766 | |||||||||
Loans, net of unearned income | 25,774,656 | — | 25,774,656 | |||||||||
Allowance for loan losses | (356,887 | ) | — | (356,887 | ) | |||||||
Loans, net | 25,417,769 | — | 25,417,769 | |||||||||
Premises and equipment, net | 803,528 | (276,113 | ) | 527,415 | ||||||||
Contract acquisition costs and computer software, net | 351,576 | (351,576 | ) | — | ||||||||
Goodwill, net | 682,047 | (162,909 | ) | 519,138 | ||||||||
Other intangible assets, net | 49,933 | (19,988 | ) | 29,945 | ||||||||
Other assets | 1,381,011 | (376,107 | ) | 1,004,904 | ||||||||
Total assets | $ | 33,575,663 | (1,006,838 | ) | $ | 32,568,825 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits: | ||||||||||||
Non-interest bearing retail and commercial deposits | $ | 3,564,105 | — | $ | 3,564,105 | |||||||
Interest bearing retail and commercial deposits | 17,887,961 | 320,936 | 18,208,897 | |||||||||
Total retail and commercial deposits | 21,452,066 | 320,936 | 21,773,002 | |||||||||
Brokered time deposits | 2,872,978 | — | 2,872,978 | |||||||||
Total deposits | 24,325,044 | 320,936 | 24,645,980 | |||||||||
Federal funds purchased and other short-term liabilities | 2,568,759 | — | 2,568,759 | |||||||||
Long-term debt | 1,760,162 | (79,684 | ) | 1,680,478 | ||||||||
Other liabilities | 592,771 | (307,766 | ) | 285,005 | ||||||||
Total liabilities | 29,246,736 | (66,514 | ) | 29,180,222 | ||||||||
Minority interest in consolidated subsidiaries | 274,571 | (274,571 | ) | — | ||||||||
Shareholders’ equity | 4,054,356 | (665,753 | ) | 3,388,603 | ||||||||
Total liabilities and shareholders’ equity | $ | 33,575,663 | (1,006,838 | ) | $ | 32,568,825 | ||||||
See introduction and accompanying notes to pro forma condensed consolidated financial statement information.
3
NOTES TO PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION
(a) | Adjustments to remove the results of operations of Total System Services, Inc. (“TSYS”) for the nine month period ended September 30, 2007, including the impact of intercompany eliminations and certain reclassifications. Included in the pro forma adjustments is the removal of $6,298,000 of spin-off related costs. |
(b) | Adjustments to remove the results of operations of TSYS for the year-ended December 31, 2006, including the impact of intercompany eliminations and certain reclassifications. |
(c) | Adjustments to remove the balance sheet of TSYS as of December 31, 2006, including the impact of intercompany eliminations and certain reclassifications. Included in the pro forma adjustments is recognition of a $484 million cash dividend from TSYS, which represents Synovus’ share of the $600 million special dividend, paid by TSYS immediately before the spin-off transaction. | |
Also included in the pro forma adjustments is the removal of $20.5 million of goodwill and $6 million of other intangible assets previously recorded by Synovus in conjunction with prior purchases of TSYS common stock. |
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