Exhibit 99.2
4 of 9
Synovus
INCOME STATEMENT DATA
(Unaudited)
(In thousands, except share data)
| | | | | | | | | | | | |
| | Nine Months Ended | |
| | September 30, | |
| | 2008 | | | 2007 | | | Change | |
|
Interest income (taxable equivalent) | | $ | 1,420,730 | | | | 1,688,474 | | | | (15.9 | )% |
Interest expense | | | 597,375 | | | | 822,354 | | | | (27.4 | ) |
| | | | | | | | | |
|
Net interest income (taxable equivalent) | | | 823,355 | | | | 866,120 | | | | (4.9 | ) |
Tax equivalent adjustment | | | 3,487 | | | | 3,857 | | | | (9.6 | ) |
| | | | | | | | | |
|
Net interest income | | | 819,868 | | | | 862,263 | | | | (4.9 | ) |
Provision for loan losses | | | 336,016 | | | | 99,566 | | | | 237.5 | |
| | | | | | | | | |
|
Net interest income after provision | | | 483,852 | | | | 762,697 | | | | (36.6 | ) |
| | | | | | | | | |
|
Non-interest income: | | | | | | | | | | | | |
Service charges on deposit accounts | | | 82,594 | | | | 83,157 | | | | (0.7 | ) |
Fiduciary and asset management fees | | | 37,612 | | | | 37,652 | | | | (0.1 | ) |
Brokerage and investment banking revenue | | | 25,591 | | | | 23,381 | | | | 9.5 | |
Mortgage banking income | | | 18,323 | | | | 20,876 | | | | (12.2 | ) |
Bankcard fees | | | 39,788 | | | | 35,370 | | | | 12.5 | |
Net gains on sales of available for sale investment securities | | | — | | | | 891 | | | nm |
Other fee income | | | 30,039 | | | | 29,749 | | | | 1.0 | |
Proceeds from Visa IPO | | | 38,542 | | | | — | | | nm |
Other non-interest income | | | 74,141 | | | | 58,953 | | | | 25.8 | |
| | | | | | | | | |
| | | | | | | | | | | | |
Total non-interest income | | | 346,630 | | | | 290,029 | | | | 19.5 | |
| | | | | | | | | |
|
Non-interest expense: | | | | | | | | | | | | |
Salaries and other personnel expense | | | 346,342 | | | | 345,690 | | | | 0.2 | |
Net occupancy and equipment expense | | | 93,188 | | | | 82,914 | | | | 12.4 | |
FDIC insurance and other regulatory fees | | | 18,210 | | | | 7,239 | | | | 151.6 | |
Foreclosed real estate | | | 64,764 | | | | 2,812 | | | nm |
Losses on impaired loans held for sale | | | 9,944 | | | | — | | | nm |
Visa litigation (recovery) expense | | | (17,430 | ) | | | 12,000 | | | | (245.3 | ) |
Goodwill impairment | | | 27,000 | | | | — | | | nm |
Professional fees | | | 20,311 | | | | 14,948 | | | | 35.9 | |
Restructuring charges | | | 13,299 | | | | — | | | nm |
Other operating expense | | | 150,559 | | | | 139,281 | | | | 8.1 | |
| | | | | | | | | |
| | | | | | | | | | | | |
Total non-interest expense | | | 726,187 | | | | 604,884 | | | | 20.1 | |
| | | | | | | | | |
| | | | | | | | | | | | |
Minority interest in consolidated subsidiaries | | | 6,347 | | | | — | | | nm |
Income from continuing operations before income taxes | | | 97,948 | | | | 447,842 | | | | (78.1 | ) |
Income tax expense | | | 31,772 | | | | 158,050 | | | | (79.9 | ) |
| | | | | | | | | |
| | | | | | | | | | | | |
Income from continuing operations | | | 66,176 | | | | 289,792 | | | | (77.2 | ) |
| | | | | | | | | | | | |
Income from discontinued operations, net of income taxes and minority interest (1) | | | — | | | | 154,654 | | | nm |
| | | | | | | | | |
| | | | | | | | | | | | |
Net income | | $ | 66,176 | | | | 444,446 | | | | (85.1 | )% |
| | | | | | | | | |
| | | | | | | | | | | | |
Basic earnings per share | | | | | | | | | | | | |
Income from continuing operations | | $ | 0.20 | | | | 0.89 | | | | (77.4 | )% |
Net income | | | 0.20 | | | | 1.36 | | | | (85.2 | ) |
| | | | | | | | | | | | |
Diluted earnings per share | | | | | | | | | | | | |
Income from continuing operations | | | 0.20 | | | | 0.88 | | | | (77.3 | ) |
Net income | | | 0.20 | | | | 1.35 | | | | (85.2 | ) |
| | | | | | | | | | | | |
Cash dividends declared per share | | | 0.40 | | | | 0.62 | | | | (35.0 | ) |
| | | | | | | | | | | | |
Return on average assets from continuing operations* | | | 0.26 | | | | 1.24 | | | (98 | )bp |
Return on average assets * | | | 0.26 | | | | 1.82 | | | | (156 | ) |
Return on average equity from continuing operations* | | | 2.58 | | | | 9.96 | | | | (738 | ) |
Return on average equity * | | | 2.58 | | | | 15.28 | | | | (1,270 | ) |
| | | | | | | | | | | | |
Average shares outstanding — basic | | | 329,195 | | | | 326,443 | | | | 0.8 | % |
Average shares outstanding — diluted | | | 331,317 | | | | 330,001 | | | | 0.4 | |
bp — change is measured as difference in basis points.
nm — not meaningful
* — ratios are annualized
| | |
(1) | | On December 31, 2007, Synovus Financial Corp. completed the spin-off of its shares of Total System Services, Inc. (“TSYS”) common stock to Synovus shareholders. In accordance with the provisions of Statement of Financial Accounting Standards (SFAS) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” and SFAS No. 146, “Accounting for Costs Associated with Exit or Disposal Activities,” the historical consolidated results of operations of TSYS, as well as all costs recorded by Synovus Financial Corp. associated with the spin-off of TSYS, are now presented as a discontinued operation. Additionally, discontinued operations for the nine months ended September 30, 2007 includes a $4.2 million after-tax gain related to the transfer of Synovus’ proprietary mutual funds to a non-affiliated third party. |
5 of 9
Synovus
| | | | | | |
INCOME STATEMENT DATA |
(Unaudited) (In thousands, except per share data) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | 2008 | | | 2007 | | | 3rd Quarter | |
| | Third | | | Second | | | First | | | Fourth | | | Third | | | ‘08 vs. ’07 | |
| | Quarter | | | Quarter | | | Quarter | | | Quarter | | | Quarter | | | Change | |
Interest income (taxable equivalent) | | $ | 456,400 | | | | 459,273 | | | | 505,057 | | | | 554,989 | | | | 573,545 | | | | (20.4 | )% |
Interest expense | | | 187,425 | | | | 184,718 | | | | 225,232 | | | | 267,102 | | | | 281,478 | | | | (33.4 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income (taxable equivalent) | | | 268,975 | | | | 274,555 | | | | 279,825 | | | | 287,887 | | | | 292,067 | | | | (7.9 | ) |
Tax equivalent adjustment | | | 1,177 | | | | 1,134 | | | | 1,176 | | | | 1,202 | | | | 1,228 | | | | (4.2 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | 267,798 | | | | 273,421 | | | | 278,649 | | | | 286,685 | | | | 290,839 | | | | (7.9 | ) |
Provision for loan losses | | | 151,351 | | | | 93,616 | | | | 91,049 | | | | 70,642 | | | | 58,770 | | | | 157.5 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Net interest income after provision | | | 116,447 | | | | 179,805 | | | | 187,600 | | | | 216,043 | | | | 232,069 | | | | (49.8 | ) |
| | | | | | | | | | | | | | | | | | |
Non-interest income: | | | | | | | | | | | | | | | | | | | | | | | | |
Service charges on deposit accounts | | | 28,132 | | | | 26,070 | | | | 28,391 | | | | 28,985 | | | | 28,736 | | | | (2.1 | ) |
Fiduciary and asset management fees | | | 12,095 | | | | 12,898 | | | | 12,621 | | | | 13,110 | | | | 12,524 | | | | (3.4 | ) |
Brokerage and investment banking revenue | | | 7,898 | | | | 9,206 | | | | 8,487 | | | | 8,598 | | | | 8,123 | | | | (2.8 | ) |
Mortgage banking income | | | 4,476 | | | | 5,686 | | | | 8,161 | | | | 6,130 | | | | 5,955 | | | | (24.8 | ) |
Bankcard fees | | | 13,371 | | | | 14,198 | | | | 12,218 | | | | 12,400 | | | | 11,923 | | | | 12.1 | |
Net gains on sales of available for sale investment securities | | | — | | | | — | | | | — | | | | 90 | | | | 186 | | | nm |
Other fee income | | | 8,773 | | | | 10,081 | | | | 11,185 | | | | 9,559 | | | | 9,910 | | | | (11.5 | ) |
Other non-interest income | | | 24,210 | | | | 29,559 | | | | 20,370 | | | | 20,126 | | | | 28,837 | | | | (16.0 | ) |
Proceeds from Visa IPO | | | — | | | | — | | | | 38,542 | | | | — | | | | — | | | nm |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total non-interest income | | | 98,955 | | | | 107,698 | | | | 139,975 | | | | 98,998 | | | | 106,194 | | | | (6.8 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest expense: | | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and other personnel expense | | | 114,535 | | | | 109,676 | | | | 122,130 | | | | 109,468 | | | | 115,941 | | | | (1.2 | ) |
Net occupancy and equipment expense | | | 31,852 | | | | 31,126 | | | | 30,211 | | | | 29,976 | | | | 28,055 | | | | 13.5 | |
FDIC insurance and other regulatory fees | | | 5,960 | | | | 6,172 | | | | 6,079 | | | | 3,108 | | | | 2,541 | | | | 134.6 | |
Foreclosed real estate | | | 43,205 | | | | 13,677 | | | | 7,881 | | | | 12,924 | | | | 1,662 | | | nm |
Losses on impaired loans held for sale | | | — | | | | 9,944 | | | | — | | | | — | | | | — | | | | | |
Visa litigation (recovery) expense | | | — | | | | — | | | | (17,430 | ) | | | 24,800 | | | | 12,000 | | | nm |
Goodwill impairment | | | — | | | | 27,000 | | | | — | | | | — | | | | — | | | nm |
Professional fees | | | 6,916 | | | | 8,454 | | | | 4,940 | | | | 6,307 | | | | 4,703 | | | | 47.1 | |
Restructuring charges | | | 9,048 | | | | 4,251 | | | | — | | | | — | | | | — | | | nm |
Other operating expense | | | 47,334 | | | | 55,663 | | | | 47,563 | | | | 48,626 | | | | 47,523 | | | | (0.4 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total non-interest expense | | | 258,850 | | | | 265,963 | | | | 201,374 | | | | 235,209 | | | | 212,425 | | | | 21.9 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Minority interest in consolidated subsidiaries | | | 4,650 | | | | 138 | | | | 1,559 | | | | — | | | | — | | | nm |
Income (loss) from continuing operations before income taxes | | | (48,098 | ) | | | 21,402 | | | | 124,642 | | | | 79,832 | | | | 125,838 | | | | (138.2 | ) |
Income tax (benefit) expense | | | (21,180 | ) | | | 9,302 | | | | 43,648 | | | | 26,690 | | | | 42,261 | | | | (150.1 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | | | (26,918 | ) | | | 12,100 | | | | 80,994 | | | | 53,142 | | | | 83,577 | | | | (132.2 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income from discontinued operations, net of income taxes and minority interest (1) | | | — | | | | — | | | | — | | | | 28,717 | | | | 51,366 | | | nm |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | (26,918 | ) | | | 12,100 | | | | 80,994 | | | | 81,859 | | | | 134,943 | | | | (119.9 | )% |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Basic earnings per share | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | | $ | (0.08 | ) | | | 0.04 | | | | 0.25 | | | | 0.16 | | | | 0.26 | | | | (132.0 | )% |
Net income (loss) | | | (0.08 | ) | | | 0.04 | | | | 0.25 | | | | 0.25 | | | | 0.41 | | | | (119.8 | ) |
| | �� | | | | | | | | | | | | | | | | | | | | | | |
Diluted earnings per share | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | | | (0.08 | ) | | | 0.04 | | | | 0.24 | | | | 0.16 | | | | 0.25 | | | | (132.3 | ) |
Net income (loss) | | | (0.08 | ) | | | 0.04 | | | | 0.24 | | | | 0.25 | | | | 0.41 | | | | (120.0 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Cash dividends declared per share | | | 0.06 | | | | 0.17 | | | | 0.17 | | | | 0.21 | | | | 0.21 | | | | (70.7 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Return on average assets from continuing operations* | | | (0.31 | )% | | | 0.14 | % | | | 0.99 | % | | | 0.65 | | | | 1.05 | | | (136 | )bp |
Return on average assets * | | | (0.31 | ) | | | 0.14 | | | | 0.99 | | | | 0.96 | | | | 1.62 | | | | (193 | ) |
Return on average equity from continuing operations* | | | (3.18 | ) | | | 1.40 | | | | 9.43 | | | | 5.17 | | | | 8.25 | | | | (1,143 | ) |
Return on average equity * | | | (3.18 | ) | | | 1.40 | | | | 9.43 | | | | 7.97 | | | | 13.32 | | | | (1,650 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Average shares outstanding — basic | | | 329,438 | | | | 329,173 | | | | 328,970 | | | | 328,052 | | | | 327,215 | | | | 0.7 | % |
Average shares outstanding — diluted | | | 329,438 | | | | 331,418 | | | | 331,719 | | | | 329,453 | | | | 330,160 | | | | nm | |
bp — change is measured as difference in basis points.
nm — not meaningful
* — ratios are annualized
| | |
(1) | | On December 31, 2007, Synovus Financial Corp. completed the spin-off of its shares of Total System Services, Inc. (“TSYS”) common stock to Synovus shareholders. In accordance with the provisions of Statement of Financial Accounting Standards (SFAS) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” and SFAS No. 146, “Accounting for Costs Associated with Exit or Disposal Activities,” the historical consolidated results of operations of TSYS, as well as all costs recorded by Synovus Financial Corp. associated with the spin-off of TSYS, are now presented as a discontinued operation. |
6 of 9
Synovus
BALANCE SHEET DATA
(Unaudited)
(In thousands, except share data)
| | | | | | | | | | | | |
| | September 30, 2008 | | | December 31, 2007 | | | September 30, 2007 | |
|
ASSETS | | | | | | | | | | | | |
Cash and due from banks | | $ | 497,419 | | | | 682,583 | | | | 642,882 | |
Interest earning deposits with banks | | | 2,845 | | | | 10,950 | | | | 4,318 | |
Federal funds sold and securities purchased under resale agreements | | | 269,600 | | | | 76,086 | | | | 113,654 | |
Trading account assets | | | 101,889 | | | | 17,803 | | | | 33,009 | |
Mortgage loans held for sale | | | 105,068 | | | | 153,437 | | | | 165,837 | |
Impaired loans held for sale | | | 13,554 | | | | — | | | | — | |
Investment securities available for sale | | | 3,831,126 | | | | 3,666,974 | | | | 3,628,766 | |
| | | | | | | | | | | | |
Loans, net of unearned income | | | 27,647,983 | | | | 26,498,585 | | | | 25,774,656 | |
Allowance for loan losses | | | (463,836 | ) | | | (367,613 | ) | | | (356,887 | ) |
| | | | | | | | | |
Loans, net | | | 27,184,147 | | | | 26,130,972 | | | | 25,417,769 | |
| | | | | | | | | |
| | | | | | | | | | | | |
Premises and equipment, net | | | 595,646 | | | | 547,437 | | | | 527,414 | |
Goodwill | | | 492,138 | | | | 519,138 | | | | 519,138 | |
Other intangible assets, net | | | 23,579 | | | | 28,007 | | | | 29,947 | |
Other assets | | | 1,233,234 | | | | 1,185,065 | | | | 1,112,407 | |
Assets of discontinued operations | | | — | | | | — | | | | 1,490,671 | |
| | | | | | | | | |
| | | | | | | | | | | | |
Total assets | | $ | 34,350,245 | | | | 33,018,452 | | | | 33,685,812 | |
| | | | | | | | | |
| | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | |
Non-interest bearing retail and commercial deposits | | $ | 3,479,314 | | | | 3,472,423 | | | | 3,566,749 | |
Interest bearing retail and commercial deposits | | | 18,194,976 | | | | 17,734,851 | | | | 17,744,117 | |
| | | | | | | | | |
|
Total retail and commercial deposits | | | 21,674,290 | | | | 21,207,274 | | | | 21,310,866 | |
Brokered deposits | | | 6,174,573 | | | | 3,752,542 | | | | 3,325,430 | |
| | | | | | | | | |
|
Total deposits | | | 27,848,863 | | | | 24,959,816 | | | | 24,636,296 | |
|
Federal funds purchased and other short-term liabilities | | | 674,501 | | | | 2,319,412 | | | | 2,581,087 | |
Long-term debt | | | 2,120,546 | | | | 1,890,235 | | | | 1,680,478 | |
Other liabilities | | | 284,220 | | | | 407,399 | | | | 392,697 | |
Liabilities of and minority interest in discontinued operations (1) | | | — | | | | — | | | | 340,898 | |
| | | | | | | | | |
| | | | | | | | | | | | |
Total liabilities | | | 30,928,130 | | | | 29,576,862 | | | | 29,631,456 | |
| | | | | | | | | |
| | | | | | | | | | | | |
Minority interest in consolidated subsidiaries | | | 30,606 | | | | — | | | | — | |
| | | | | | | | | | | | |
Shareholders’ equity: | | | | | | | | | | | | |
Common stock, par value $1.00 a share (2) | | | 335,972 | | | | 335,529 | | | | 334,095 | |
Additional paid-in capital | | | 1,114,142 | | | | 1,101,209 | | | | 1,107,653 | |
Treasury stock (3) | | | (114,117 | ) | | | (113,944 | ) | | | (113,944 | ) |
Accumulated other comprehensive income | | | 36,253 | | | | 31,439 | | | | 23,339 | |
Retained earnings | | | 2,019,259 | | | | 2,087,357 | | | | 2,703,213 | |
| | | | | | | | | |
Total shareholders’ equity | | | 3,391,509 | | | | 3,441,590 | | | | 4,054,356 | |
| | | | | | | | | |
| | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 34,350,245 | | | | 33,018,452 | | | | 33,685,812 | |
| | | | | | | | | |
| | |
(1) | | On December 31, 2007, Synovus Financial Corp. completed the spin-off of its shares of Total System Services, Inc. (“TSYS”) common stock to Synovus shareholders. In accordance with Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” all prior period assets and liabilities of TSYS are presented as a discontinued operation. |
|
(2) | | Common shares outstanding: 330,294,672; 329,867,944 and 328,433,944 at September 30, 2008, December 31, 2007, and September 30, 2007, respectively. |
|
(3) | | Treasury shares: 5,676,830 at September 30, 2008; 5,661,538 at December 31, 2007 and September 30, 2007. |
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Synovus
AVERAGE BALANCES AND YIELDS/RATES *
(Unaudited)
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | 2008 | | 2007 |
| | |
| | Third | | Second | | First | | Fourth | | Third |
| | Quarter | | Quarter | | Quarter | | Quarter | | Quarter |
| | |
Interest Earning Assets | | | | | | | | | | | | | | | | | | | | |
Taxable Investment Securities | | $ | 3,670,315 | | | | 3,556,381 | | | | 3,485,370 | | | | 3,496,843 | | | | 3,495,017 | |
Yield | | | 4.91 | % | | | 5.00 | | | | 5.01 | | | | 4.90 | | | | 4.82 | |
Tax-Exempt Investment Securities | | $ | 128,241 | | | | 137,606 | | | | 154,408 | | | | 164,587 | | | | 170,211 | |
Yield (taxable equivalent) | | | 6.74 | % | | | 7.34 | | | | 7.00 | | | | 6.82 | | | | 6.72 | |
Trading Account Assets | | $ | 30,584 | | | | 26,531 | | | | 36,652 | | | | 29,698 | | | | 56,217 | |
Yield | | | 6.77 | % | | | 5.88 | | | | 6.96 | | | | 7.05 | | | | 7.15 | |
Commercial Loans | | $ | 23,302,028 | | | | 23,183,128 | | | | 22,763,954 | | | | 22,157,460 | | | | 21,820,687 | |
Yield | | | 5.78 | % | | | 5.96 | | | | 6.79 | | | | 7.69 | | | | 8.13 | |
Consumer Loans | | $ | 1,006,685 | | | | 966,111 | | | | 931,644 | | | | 928,942 | | | | 915,847 | |
Yield | | | 7.34 | % | | | 7.53 | | | | 7.86 | | | | 8.05 | | | | 8.17 | |
Mortgage Loans | | $ | 1,312,166 | | | | 1,252,275 | | | | 1,241,018 | | | | 1,237,962 | | | | 1,152,621 | |
Yield | | | 6.38 | % | | | 6.54 | | | | 6.84 | | | | 7.04 | | | | 7.10 | |
Credit Card Loans | | $ | 292,239 | | | | 291,143 | | | | 296,428 | | | | 285,410 | | | | 277,445 | |
Yield | | | 8.72 | % | | | 8.60 | | | | 9.65 | | | | 10.26 | | | | 10.96 | |
Home Equity Loans | | $ | 1,656,387 | | | | 1,605,601 | | | | 1,557,852 | | | | 1,517,510 | | | | 1,444,411 | |
Yield | | | 5.15 | % | | | 5.31 | | | | 6.48 | | | | 7.34 | | | | 7.80 | |
Allowance for Loan Losses | | $ | (422,331 | ) | | | (397,392 | ) | | | (381,695 | ) | | | (357,283 | ) | | | (335,406 | ) |
| | |
Loans, Net | | $ | 27,147,174 | | | | 26,900,866 | | | | 26,409,201 | | | | 25,770,001 | | | | 25,275,605 | |
Yield | | | 5.95 | % | | | 6.12 | | | | 6.94 | | | | 7.79 | | | | 8.21 | |
Mortgage Loans Held for Sale | | $ | 108,873 | | | | 157,049 | | | | 121,806 | | | | 108,044 | | | | 176,448 | |
Yield | | | 6.91 | % | | | 5.86 | | | | 5.57 | | | | 6.12 | | | | 6.91 | |
Federal Funds Sold and Other Short-Term Investments | | $ | 211,323 | | | | 201,081 | | | | 128,381 | | | | 110,745 | | | | 85,094 | |
Yield | | | 1.88 | % | | | 1.83 | | | | 3.41 | | | | 4.63 | | | | 5.76 | |
| | |
Total Interest Earning Assets | | $ | 31,296,510 | | | | 30,979,514 | | | | 30,335,818 | | | | 29,679,918 | | | | 29,258,592 | |
Yield | | | 5.81 | % | | | 5.96 | | | | 6.69 | | | | 7.42 | | | | 7.78 | |
| | |
| | | | | | | | | | | | | | | | | | | | |
Interest Bearing Liabilities | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Interest Bearing Demand Deposits | | $ | 3,076,447 | | | | 3,154,884 | | | | 3,200,650 | | | | 3,200,408 | | | | 3,047,279 | |
Rate | | | 1.07 | % | | | 1.10 | | | | 1.56 | | | | 1.99 | | | | 2.24 | |
Money Market Accounts | | $ | 6,771,080 | | | | 6,826,724 | | | | 7,017,644 | | | | 7,502,063 | | | | 7,421,900 | |
Rate | | | 2.19 | % | | | 2.15 | | | | 2.98 | | | | 3.92 | | | | 4.40 | |
Savings Deposits | | $ | 457,526 | | | | 461,970 | | | | 448,581 | | | | 454,204 | | | | 479,479 | |
Rate | | | 0.25 | % | | | 0.25 | | | | 0.28 | | | | 0.35 | | | | 0.48 | |
Time Deposits Under $100,000 | | $ | 3,055,465 | | | | 2,814,714 | | | | 2,777,764 | | | | 2,790,869 | | | | 2,917,089 | |
Rate | | | 3.69 | % | | | 3.97 | | | | 4.44 | | | | 4.69 | | | | 4.81 | |
Time Deposits Over $100,000 (less brokered time deposits) | | $ | 4,731,468 | | | | 4,316,454 | | | | 4,171,716 | | | | 4,006,350 | | | | 4,029,091 | |
Rate | | | 3.79 | % | | | 4.09 | | | | 4.69 | | | | 4.98 | | | | 5.12 | |
| | |
Total Interest Bearing Core Deposits | | $ | 18,091,986 | | | | 17,574,746 | | | | 17,616,355 | | | | 17,953,894 | | | | 17,894,838 | |
Rate | | | 2.62 | % | | | 2.68 | | | | 3.29 | | | | 3.84 | | | | 4.16 | |
Brokered Money Market Accounts | | $ | 1,271,113 | | | | 1,082,805 | | | | 854,385 | | | | 467,346 | | | | 476,377 | |
Rate | | | 2.27 | % | | | 2.54 | | | | 3.50 | | | | 4.89 | | | | 5.34 | |
Brokered Time Deposits | | $ | 3,968,783 | | | | 3,495,947 | | | | 3,300,677 | | | | 2,941,592 | | | | 3,188,310 | |
Rate | | | 3.61 | % | | | 3.64 | | | | 4.35 | | | | 4.98 | | | | 5.19 | |
| | |
Total Interest Bearing Deposits | | $ | 23,331,882 | | | | 22,153,498 | | | | 21,771,417 | | | | 21,362,832 | | | | 21,559,525 | |
Rate | | | 2.77 | % | | | 2.82 | | | | 3.46 | | | | 4.02 | | | | 4.33 | |
Federal Funds Purchased and Other Short-Term Liabilities | | $ | 1,459,097 | | | | 2,302,986 | | | | 2,253,640 | | | | 2,472,339 | | | | 1,930,598 | |
Rate | | | 1.94 | % | | | 2.03 | | | | 3.18 | | | | 4.37 | | | | 4.84 | |
Long-Term Debt | | $ | 2,119,321 | | | | 2,048,213 | | | | 1,930,412 | | | | 1,819,198 | | | | 1,660,788 | |
Rate | | | 3.32 | % | | | 3.44 | | | | 4.21 | | | | 5.08 | | | | 5.32 | |
| | |
Total Interest Bearing Liabilities | | $ | 26,910,300 | | | | 26,504,697 | | | | 25,955,469 | | | | 25,654,369 | | | | 25,150,911 | |
Rate | | | 2.77 | % | | | 2.80 | | | | 3.48 | | | | 4.12 | | | | 4.43 | |
| | |
Non-Interest Bearing Demand Deposits | | $ | 3,463,563 | | | | 3,448,794 | | | | 3,338,106 | | | | 3,422,684 | | | | 3,405,622 | |
| | |
Net Interest Margin | | | 3.42 | % | | | 3.57 | | | | 3.71 | | | | 3.86 | | | | 3.97 | |
| | |
| | |
* | | Yields and rates are annualized. |
|
(1) | | On December 31, 2007, Synovus Financial Corp. completed the spin-off of its shares of Total System Services, Inc. (“TSYS”) common stock to Synovus shareholders. In accordance with the provisions of Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” the historical consolidated results of operations, assets, and liabilities of TSYS are now presented as a discontinued operation. Accordingly, the above earning assets, liabilities, yields, and cost of funds exclude the amounts related to TSYS due to the de-consolidation of TSYS. |
8 of 9
Synovus
LOANS OUTSTANDING AND NONPERFORMING LOANS COMPOSITION
(Unaudited)
(Dollars in thousands)
| | | | | | | | | | | | | | | | |
| | September 30, 2008 |
| | | | | | Loans as a % | | | Total | | | Nonperforming Loans | |
| | | | | | of Total Loans | | | Nonperforming | | | as a % of Total | |
Loan Type | | Total Loans | | | Outstanding | | | Loans | | | Nonperforming Loans | |
| | |
| | | | | | | | | | | | | | | | |
Multi-Family | | $ | 555,207 | | | | 2.0 | % | | $ | 4,076 | | | | 0.5 | % |
Hotels | | | 830,981 | | | | 3.0 | | | | 635 | | | | 0.1 | |
Office Buildings | | | 960,319 | | | | 3.5 | | | | 4,955 | | | | 0.7 | |
Shopping Centers | | | 1,005,094 | | | | 3.7 | | | | 684 | | | | 0.1 | |
Commercial Development | | | 912,073 | | | | 3.3 | | | | 13,330 | | | | 1.7 | |
Other Investment Property | | | 948,253 | | | | 3.4 | | | | 487 | | | | 0.1 | |
| | | | | | | | | | | | |
Total Investment Properties | | | 5,211,927 | | | | 18.9 | | | | 24,167 | | | | 3.1 | |
| | | | | | | | | | | | |
1-4 Family Construction | | | 1,772,559 | | | | 6.4 | | | | 214,855 | | | | 27.9 | |
1-4 Family Perm / Mini-Perm | | | 1,367,807 | | | | 5.0 | | | | 41,761 | | | | 5.4 | |
Residential Development | | | 2,222,496 | | | | 8.0 | | | | 204,185 | | | | 26.5 | |
| | | | | | | | | | | | |
Total 1-4 Family Properties | | | 5,362,862 | | | | 19.4 | | | | 460,801 | | | | 59.8 | |
| | | | | | | | | | | | |
Land Acquisition | | | 1,560,734 | | | | 5.6 | | | | 83,066 | | | | 10.8 | |
| | | | | | | | | | | | |
Total Commercial Real Estate | | | 12,135,523 | | | | 43.9 | | | | 568,034 | | | | 73.7 | |
| | | | | | | | | | | | |
Commercial, Financial, and Agricultural | | | 6,841,197 | | | | 24.7 | | | | 106,288 | | | | 13.8 | |
Owner-Occupied | | | 4,388,945 | | | | 15.9 | | | | 68,780 | | | | 9.0 | |
| | | | | | | | | | | | |
Total Commercial & Industrial | | | 11,230,142 | | | | 40.6 | | | | 175,068 | | | | 22.8 | |
Home Equity | | | 1,681,475 | | | | 6.1 | | | | 6,228 | | | | 0.8 | |
Consumer Mortgages | | | 1,759,518 | | | | 6.4 | | | | 18,228 | | | | 2.4 | |
Credit card | | | 291,162 | | | | 1.1 | | | | — | | | | — | |
Other Retail Loans | | | 592,067 | | | | 2.1 | | | | 2,392 | | | | 0.3 | |
| | | | | | | | | | | | |
Total Retail | | | 4,324,222 | | | | 15.7 | | | | 26,848 | | | | 3.5 | |
Unearned Income | | | (41,904 | ) | | | (0.2 | ) | | | — | | | | — | |
| | | | | | | | | | | | |
Total | | $ | 27,647,983 | | | | 100.0 | % | | $ | 769,950 | | | | 100.0 | % |
| | | | | | | | | | | | |
LOANS OUTSTANDING BY TYPE COMPARISON
(Unaudited)
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | Total Loans | | | 3Q08 vs. 4Q07 | | | | | | | 3Q08 vs. 3Q07 | |
Loan Type | | September 30, 2008 | | | December 31, 2007 | | | % change (1) | | | September 30, 2007 | | | % change | |
| | |
| | | | | | | | | | | | | | | | | | | | |
Multi-Family | | $ | 555,207 | | | | 452,163 | | | | 30.4 | % | | $ | 449,814 | | | | 23.4 | % |
Hotels | | | 830,981 | | | | 614,979 | | | | 46.9 | | | | 591,527 | | | | 40.5 | |
Office Buildings | | | 960,319 | | | | 953,093 | | | | 1.0 | | | | 880,478 | | | | 9.1 | |
Shopping Centers | | | 1,005,094 | | | | 834,025 | | | | 27.4 | | | | 739,333 | | | | 35.9 | |
Commercial Development | | | 912,073 | | | | 961,271 | | | | (6.8 | ) | | | 935,802 | | | | (2.5 | ) |
Other Investment Property | | | 948,253 | | | | 714,296 | | | | 43.8 | | | | 671,718 | | | | 41.2 | |
| | | | | | | | | | | | | | | |
Total Investment Properties | | | 5,211,927 | | | | 4,529,827 | | | | 20.1 | | | | 4,268,672 | | | | 22.1 | |
| | | | | | | | | | | | | | | |
1-4 Family Construction | | | 1,772,559 | | | | 2,238,925 | | | | (27.8 | ) | | | 2,302,842 | | | | (23.0 | ) |
1-4 Family Perm / Mini-Perm | | | 1,367,807 | | | | 1,273,843 | | | | 9.9 | | | | 1,216,481 | | | | 12.4 | |
Residential Development | | | 2,222,496 | | | | 2,311,459 | | | | (5.1 | ) | | | 2,269,844 | | | | (2.1 | ) |
| | | | | | | | | | | | | | | |
Total 1-4 Family Properties | | | 5,362,862 | | | | 5,824,227 | | | | (10.6 | ) | | | 5,789,167 | | | | (7.4 | ) |
| | | | | | | | | | | | | | | |
Land Acquisition | | | 1,560,734 | | | | 1,545,933 | | | | 1.3 | | | | 1,476,042 | | | | 5.7 | |
| | | | | | | | | | | | | | | |
Total Commercial Real Estate | | | 12,135,523 | | | | 11,899,987 | | | | 2.6 | | | | 11,533,881 | | | | 5.2 | |
| | | | | | | | | | | | | | | |
Commercial, Financial, and Agricultural | | | 6,841,197 | | | | 6,420,689 | | | | 8.7 | | | | 6,264,683 | | | | 9.2 | |
Owner-Occupied | | | 4,388,945 | | | | 4,226,707 | | | | 5.1 | | | | 4,156,535 | | | | 5.6 | |
| | | | | | | | | | | | | | | |
Total Commercial & Industrial | | | 11,230,142 | | | | 10,647,396 | | | | 7.3 | | | | 10,421,218 | | | | 7.8 | |
Home Equity | | | 1,681,475 | | | | 1,543,701 | | | | 11.9 | | | | 1,478,694 | | | | 13.7 | |
Consumer Mortgages | | | 1,759,518 | | | | 1,667,924 | | | | 7.3 | | | | 1,620,730 | | | | 8.6 | |
Credit Card | | | 291,162 | | | | 291,149 | | | | — | | | | 280,192 | | | | 3.9 | |
Other Retail Loans | | | 592,067 | | | | 494,591 | | | | 26.3 | | | | 485,928 | | | | 21.8 | |
| | | | | | | | | | | | | | | |
Total Retail | | | 4,324,222 | | | | 3,997,365 | | | | 10.9 | | | | 3,865,544 | | | | 11.9 | |
Unearned Income | | | (41,904 | ) | | | (46,163 | ) | | | (12.3 | ) | | | (45,987 | ) | | | (8.9 | ) |
| | | | | | | | | | | | | | | |
Total | | $ | 27,647,983 | | | | 26,498,585 | | | | 5.8 | % | | $ | 25,774,656 | | | | 7.3 | % |
| | | | | | | | | | | | | | | |
| | |
(1) | | Percentage change is annualized. |
9 of 9
Synovus
CREDIT QUALITY DATA
(Unaudited)
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | 2008 | | 2007 | | 3rd Quarter |
| | | |
| | Third | | Second | | First | | Fourth | | Third | | ’08 vs. ’07 |
| | Quarter | | Quarter | | Quarter | | Quarter | | Quarter | | Change |
| | |
Nonperforming Loans (1) | | $ | 769,950 | | | | 626,571 | | | | 515,302 | | | | 342,082 | | | | 224,055 | | | | 243.6 | % |
Impaired Loans Held for Sale (2) | | | 13,554 | | | | 6,365 | | | | 42,270 | | | | — | | | | — | | | NM | |
Other Real Estate | | | 215,082 | | | | 197,328 | | | | 121,753 | | | | 101,487 | | | | 76,514 | | | | 181.1 | |
Nonperforming Assets | | | 998,586 | | | | 830,264 | | | | 679,325 | | | | 443,569 | | | | 300,569 | | | | 232.2 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for Loan Losses | | | 463,836 | | | | 417,813 | | | | 394,848 | | | | 367,613 | | | | 356,887 | | | | 30.0 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Charge-Offs — Quarter | | | 105,328 | | | | 70,652 | | | | 63,813 | | | | 59,916 | | | | 33,013 | | | | 219.1 | |
Net Charge-Offs — YTD | | | 239,793 | | | | 134,465 | | | | 63,813 | | | | 117,055 | | | | 57,139 | | | | 319.7 | |
Net Charge-Offs / Average Loans — Quarter (3) | | | 1.53 | % | | | 1.04 | | | | 0.95 | | | | 0.91 | | | | 0.51 | | | | | |
Net Charge-Offs / Average Loans — YTD (3) | | | 1.18 | | | | 0.99 | | | | 0.95 | | | | 0.46 | | | | 0.30 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Nonperforming Loans / Loans | | | 2.79 | | | | 2.29 | | | | 1.90 | | | | 1.29 | | | | 0.87 | | | | | |
Nonperforming Assets / Loans, Impaired Loans Held for Sale & ORE | | | 3.58 | | | | 3.00 | | | | 2.49 | | | | 1.67 | | | | 1.16 | | | | | |
Allowance / Loans | | | 1.68 | | | | 1.52 | | | | 1.46 | | | | 1.39 | | | | 1.38 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Allowance / Nonperforming Loans | | | 60.24 | | | | 66.68 | | | | 76.62 | | | | 107.46 | | | | 159.29 | | | | | |
Allowance / Nonperforming Loans (excluding impaired loans for which there is no related allowance for loan losses (4)) | | | 202.29 | | | | 206.82 | | | | 220.89 | | | | 337.49 | | | | 334.42 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Past Due Loans over 90 days and Still Accruing | | | 49,868 | | | | 39,614 | | | | 43,009 | | | | 33,663 | | | | 22,667 | | | | 120.0 | % |
As a Percentage of Loans Outstanding | | | 0.18 | | | | 0.14 | | | | 0.16 | | | | 0.13 | | | | 0.09 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Past Dues Loans and Still Accruing | | | 403,180 | | | | 365,046 | | | | 377,999 | | | | 270,496 | | | | 230,035 | | | | 75.3 | |
As a Percentage of Loans Outstanding | | | 1.46 | | | | 1.33 | | | | 1.39 | | | | 1.02 | | | | 0.89 | | | | | |
| | |
(1) | | Includes $540.7 million, $424.5 million, $336.5 million, $233.2 million, and $117.3 million at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, and September 30, 2007, respectively, of loans considered to be impaired (consisting of collateral dependent loans) for which there is no related allowance for loan losses determined in accordance with SFAS No. 114, “Accounting by Creditors for Impairment of a Loan.” The allowance on these loans is zero because the estimated losses on collateral dependent impaired loans have been charged-off, at the time these loans were considered to be impaired. |
|
(2) | | Represent impaired loans that are intended to be sold. Held for sale loans are carried at the lower of cost or fair value. |
|
(3) | | Ratio is annualized. |
|
(4) | | Impaired loans for which there is no related allowance for loan losses as described in note (1). |
SELECTED CAPITAL INFORMATION (1)
(Unaudited)
(Dollars in thousands)
| | | | | | | | | | | | |
| | September 30, 2008 | | December 31, 2007 | | September 30, 2007 (3) |
Tier 1 Capital | | $ | 2,848,153 | | | | 2,870,558 | | | | 3,615,522 | |
Total Risk-Based Capital | | | 3,942,026 | | | | 3,988,171 | | | | 4,722,409 | |
Tier 1 Capital Ratio | | | 8.83 | % | | | 9.11 | | | | 11.42 | |
Total Risk-Based Capital Ratio | | | 12.22 | | | | 12.66 | | | | 14.92 | |
Leverage Ratio | | | 8.51 | | | | 8.65 | | | | 11.16 | |
Equity as a Percentage of Total Assets | | | 9.87 | | | | 10.42 | | | | 12.04 | |
Tangible Equity as a Percentage of Tangible Assets (2) | | | 8.50 | | | | 8.91 | | | | 10.58 | |
Book Value Per Share | | | 10.27 | | | | 10.43 | | | | 12.35 | |
Tangible Book Value Per Share (2) | | | 8.71 | | | | 8.78 | | | | 10.67 | |
| | |
(1) | | Current quarter regulatory capital information is preliminary. |
|
(2) | | Excludes the carrying value of goodwill and other intangible assets from shareholders’ equity and total assets. |
|
(3) | | September 30, 2007 amounts include TSYS assets and ownership interest in TSYS shareholders’ equity. |