Synovus Financial (SNV) 8-K Synovus Reports Earnings for Second Quarter of 2013

Exhibit 99.2

Synovus

INCOME STATEMENT DATA

(Unaudited)

(Dollars in thousands, except per share data)		Six Months Ended
		June 30,
		2013			2012		Change
Interest income	$		461,903			516,464		(10.6)	%
Interest expense			60,012			82,148		(26.9)
Net interest income			401,891			434,316		(7.5)
Provision for loan losses			48,773			110,271		(55.8)
Net interest income after provision for loan losses			353,118			324,045		9.0
Non-interest income:
Service charges on deposit accounts			38,716			36,915		4.9
Fiduciary and asset management fees			22,083			21,627		2.1
Brokerage revenue			14,595			12,942		12.8
Mortgage banking income			14,255			13,986		1.9
Bankcard fees			14,902			16,072		(7.3)
Investment securities gains, net			1,448			24,253		(94.0)
Other fee income			11,262			9,651		16.7
(Decrease) increase in fair value of private equity investments, net			(1,140)			7,372		nm
Other non-interest income			13,692			17,798		(23.1)
Total non-interest income			129,813			160,616		(19.2)
Non-interest expense:
Salaries and other personnel expense			183,396			187,795		(2.3)
Net occupancy and equipment expense			50,550			52,865		(4.4)
FDIC insurance and other regulatory fees			16,420			27,966		(41.3)
Foreclosed real estate expense, net			18,441			43,680		(57.8)
Losses (gains) on other loans held for sale, net			79			(99)		nm
Professional fees			17,511			19,196		(8.8)
Third-party services			20,295			16,735		21.3
Visa indemnification charges			801			4,713		(83.0)
Restructuring charges			6,607			2,252		193.4
Other operating expenses			49,372			56,296		(12.3)
Total non-interest expense			363,472			411,399		(11.6)
Income before income taxes			119,459			73,262		63.1
Income tax expense (benefit)			44,350			(2,182)		nm
Net income			75,109			75,444		(0.4)
Dividends and accretion of discount on Series A Preferred Stock			29,594			29,272		1.1
Net income available to common shareholders	$		45,515			46,172		(1.4)
Basic EPS
Net income available to common shareholders			0.06			0.06		(5.4)
Diluted EPS
Net income available to common shareholders			0.05			0.05		(1.6)
Cash dividends declared per common share			0.02			0.02		-
Return on average assets			0.58	%		0.57		1.8
Return on average common equity			3.51			4.87		(27.9)
Average common shares outstanding - basic			819,245			786,355		4.2	%
Average common shares outstanding - diluted			910,886			909,542		0.1

nm - not meaningful

Synovus

INCOME STATEMENT DATA

(Unaudited)

(Dollars in thousands, except per share data)		2013						2012								2nd Quarter
		Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter		‘13 vs. ‘12 Change
Interest income	$		231,512			230,391			240,000			247,676			253,809		(8.8)	%
Interest expense			29,435			30,577			32,544			35,331			40,453		(27.2)
Net interest income			202,077			199,814			207,456			212,345			213,356		(5.3)
Provision for loan losses			13,077			35,696			146,526			63,572			44,222		(70.4)
Net interest income after provision for loan losses			189,000			164,118			60,930			148,773			169,134		11.7
Non-interest income:
Service charges on deposit accounts			19,195			19,521			20,883			20,404			18,684		2.7
Fiduciary and asset management fees			11,111			10,971			10,537			10,340			10,792		3.0
Brokerage revenue			7,002			7,594			7,127			6,844			6,295		11.2
Mortgage banking income			7,338			6,917			9,025			9,261			7,983		(8.1)
Bankcard fees			7,838			7,064			10,137			7,866			8,493		(7.7)
Investment securities gains, net			1,403			45			8,233			6,656			4,170		(66.4)
Other fee income			5,775			5,487			6,211			5,276			4,951		16.6
(Decrease) increase in fair value of private equity investments, net			(883)			(257)			1,805			(944)			7,279		nm
Other non-interest income			6,313			7,379			6,159			7,530			7,830		(19.4)
Total non-interest income			65,092			64,721			80,117			73,233			76,477		(14.9)
Non-interest expense:
Salaries and other personnel expense			89,479			93,917			94,901			93,177			95,173		(6.0)
Net occupancy and equipment expense			26,383			24,167			26,063			26,647			26,159		0.9
FDIC insurance and other regulatory fees			7,941			8,480			8,237			9,205			13,302		(40.3)
Foreclosed real estate expense, net			7,502			10,940			34,978			11,997			20,708		(63.8)
(Gains) losses on other loans held for sale, net			(86)			165			675			4,104			(1,058)		nm
Professional fees			10,416			7,095			12,037			10,074			9,929		4.9
Third-party services			10,366			9,929			9,540			9,429			9,900		4.7
Visa indemnification charges			764			37			757			833			1,734		(55.9)
Restructuring charges			1,758			4,850			1,969			1,192			1,393		26.2
Other operating expenses			26,663			22,706			24,189			24,834			31,024		(14.1)
Total non-interest expense			181,186			182,286			213,346			191,492			208,264		(13.0)
Income before income taxes			72,906			46,553			(72,299)			30,514			37,347		95.2
Income tax expense (benefit)			27,371			16,979			(796,339)			(211)			(2,105)		nm
Net income			45,535			29,574			724,040			30,725			39,452		15.4
Dividends and accretion of discount on Series A Preferred Stock			14,818			14,776			14,736			14,695			14,649		1.2
Net income available to common shareholders	$		30,717			14,798			709,304			16,030			24,803		23.8
Basic EPS
Net income available to common shareholders			0.04			0.02			0.90			0.02			0.03		14.5
Diluted EPS
Net income available to common shareholders			0.03			0.02			0.78			0.02			0.03		23.7
Cash dividends declared per common share			0.01			0.01			0.01			0.01			0.01		-
Return on average assets *			0.69	%		0.46	%		11.13	%		0.47	%		0.60		15.0
Return on average common equity *			4.70			2.30			149.46			3.30			5.24		(10.3)
Average common shares outstanding - basic			851,093			787,043			786,576			786,576			786,576		8.2	%
Average common shares outstanding - diluted			910,937			910,835			911,251			910,396			909,761		0.1

nm - not meaningful

* - ratios are annualized

Synovus

BALANCE SHEET DATA		June 30, 2013		December 31, 2012		June 30, 2012
(Unaudited)
(In thousands, except share data)
ASSETS
Cash and cash equivalents	$		428,487		614,630		523,302
Interest bearing funds with Federal Reserve Bank			1,459,251		1,498,390		1,301,244
Interest earning deposits with banks			22,065		23,442		16,003
Federal funds sold and securities purchased under resale agreements			88,636		113,517		118,098
Trading account assets, at fair value			23,069		11,102		12,331
Mortgage loans held for sale, at fair value			112,761		212,663		120,007
Other loans held for sale			12,083		10,690		32,601
Investment securities available for sale, at fair value			3,077,706		2,981,112		3,570,346
Loans, net of deferred fees and costs			19,608,283		19,541,690		19,680,127
Allowance for loan losses			(334,880)		(373,405)		(453,325)
Loans, net			19,273,403		19,168,285		19,226,802
Premises and equipment, net			477,948		479,546		475,944
Goodwill			24,431		24,431		24,431
Other intangible assets, net			4,156		5,149		6,693
Other real estate			139,653		150,271		174,941
Net deferred tax asset			789,525		806,406		1,985
Other assets			630,000		660,378		689,382
Total assets	$		26,563,174		26,760,012		26,294,110
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Non-interest bearing deposits	$		5,203,437		5,665,527		5,607,680
Interest bearing deposits, excluding brokered deposits			14,169,203		14,298,768		14,808,493
Brokered deposits			1,338,063		1,092,749		1,148,892
Total deposits			20,710,703		21,057,044		21,565,065
Federal funds purchased and securities sold under repurchase agreements			222,933		201,243		351,173
Long-term debt			1,885,689		1,726,455		1,301,616
Other liabilities			175,645		205,839		222,867
Total liabilities			22,994,970		23,190,581		23,440,721
Shareholders’ equity:
Series A Preferred Stock, no par value (1)			962,725		957,327		952,093
Common stock, par value $1.00 (2)			916,208		792,273		792,269
Additional paid-in capital			2,038,483		2,189,874		2,215,201
Treasury stock, at cost (3)			(114,176)		(114,176)		(114,176)
Accumulated other comprehensive (loss) income			(33,060)		4,101		7,003
Accumulated deficit			(201,976)		(259,968)		(999,001)
Total shareholders’ equity			3,568,204		3,569,431		2,853,389
Total liabilities and shareholders’ equity	$		26,563,174		26,760,012		26,294,110

(1) Preferred shares outstanding: 967,870, at all periods presented

(2) Common shares outstanding: 910,514,396; 786,579,240; and 786,575,516 at June 30, 2013, December 31, 2012, and June 30, 2012, respectively.

(3) Treasury shares: 5,693,452, at all periods presented

Synovus

AVERAGE BALANCES AND YIELDS/RATES (1)

(Unaudited)

(Dollars in thousands)

	2013								2012
		Second Quarter				First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Interest Earning Assets
Taxable investment securities (2)	$		3,034,152				2,984,129			3,069,000			3,495,838			3,539,376
Yield			1.72		%		1.44			1.62			1.67			2.11
Tax-exempt investment securities (2) (4)	$		11,435				14,362			17,377			19,503			21,408
Yield (taxable equivalent)			6.47		%		6.34			6.59			6.47			6.40
Trading account assets	$		7,847				8,629			9,600			12,343			13,647
Yield			6.34		%		7.12			8.15			8.27			6.93
Commercial loans (3) (4)	$		15,515,117				15,464,065			15,692,588			15,691,881			15,941,719
Yield			4.36		%		4.46			4.48			4.63			4.67
Consumer loans (3)	$		4,015,589				3,997,557			3,992,986			3,940,000			3,896,941
Yield			4.68		%		4.73			4.75			4.80			4.87
Allowance for loan losses	$		(351,075	)			(372,239	)		(405,237	)		(446,495	)		(498,419	)
Loans, net (3)	$		19,179,631				19,089,383			19,280,337			19,185,386			19,340,241
Yield			4.52		%		4.61			4.65			4.79			4.85
Mortgage loans held for sale	$		129,742				179,507			208,839			175,199			90,499
Yield			4.35		%		3.80			3.72			4.03			4.99
Federal funds sold, due from Federal Reserve Bank, and other short-term investments	$		1,550,113				1,343,652			1,366,422			1,215,743			1,668,814
Yield			0.24		%		0.24			0.24			0.24			0.24
Federal Home Loan Bank and Federal Reserve Bank stock (5)	$		65,014				65,330			66,630			53,239			63,665
Yield			2.35		%		2.36			2.03			1.87			1.85
Total interest earning assets	$		23,977,934				23,684,992			24,018,205			24,157,251			24,737,650
Yield			3.88		%		3.95			3.99			4.09			4.14
Interest Bearing Liabilities
Interest bearing demand deposits	$		3,895,675				3,839,707			3,872,025			3,344,561			3,404,540
Rate			0.18		%		0.18			0.18			0.19			0.22
Money market accounts	$		6,072,155				6,135,649			6,251,374			6,751,607			6,769,037
Rate			0.33		%		0.33			0.33			0.33			0.42
Savings deposits	$		609,832				581,792			558,726			557,086			557,149
Rate			0.11		%		0.11			0.10			0.10			0.11
Time deposits under $100,000	$		1,537,639				1,581,092			1,648,554			1,763,864			1,868,348
Rate			0.64		%		0.69			0.74			0.85			0.97
Time deposits over $100,000	$		1,891,624				1,958,870			2,015,582			2,176,488			2,336,496
Rate			0.88		%		0.93			0.99			1.11			1.23
Brokered money market accounts	$		202,532				202,734			180,216			186,336			222,916
Rate			0.31		%		0.32			0.34			0.33			0.33
Brokered time deposits	$		1,131,444				1,013,461			800,434			820,908			1,036,521
Rate			0.77		%		0.99			1.42			1.83			1.94
Total interest bearing deposits	$		15,340,901				15,313,305			15,326,911			15,600,850			16,195,007
Rate			0.42		%		0.44			0.47			0.54			0.64
Federal funds purchased and other short-term liabilities	$		206,046				214,661			266,431			350,183			368,984
Rate			0.15		%		0.17			0.17			0.17			0.18
Long-term debt	$		1,762,173				1,688,580			1,740,588			1,372,741			1,326,239
Rate			3.06		%		3.26			3.31			4.09			4.34
Total interest bearing liabilities	$		17,309,120				17,216,546			17,333,930			17,323,774			17,890,230
Rate			0.68		%		0.72			0.75			0.81			0.91
Non-interest bearing demand deposits	$		5,327,795				5,232,587			5,466,312			5,560,827			5,606,352
Effective cost of funds			0.49		%		0.52			0.54			0.58			0.66
Net interest margin			3.39		%		3.43			3.45			3.51			3.48
Taxable equivalent adjustment	$		557				618			766			761			780

(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 of 35%, 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 balance sheet

Synovus

LOANS OUTSTANDING AND NON-PERFORMING LOANS COMPOSITION

(Unaudited)

(Dollars in thousands)

		June 30, 2013
Loan Type		Total Loans	Loans as a %     of Total Loans     Outstanding			Total     Non-performing     Loans	Non-performing Loans as a % of Total Nonperforming Loans
Multi-Family	$	898,472	4.6	%	$	3,632	0.8	%
Hotels		656,471	3.3			6,252	1.3
Office Buildings		782,196	4.0			11,158	2.3
Shopping Centers		844,309	4.3			10,510	2.2
Commercial Development		177,511	0.9			49,960	10.3
Warehouses		538,274	2.7			2,186	0.5
Other Investment Property		495,290	2.5			10,670	2.2
Total Investment Properties		4,392,523	22.3			94,368	19.6
1-4 Family Construction		120,417	0.6			3,090	0.6
1-4 Family Investment Mortgage		857,063	4.4			27,614	5.7
Residential Development		220,007	1.1			23,484	4.9
Total 1-4 Family Properties		1,197,487	6.1			54,188	11.2
Land Acquisition		752,319	3.8			156,202	32.3
Total Commercial Real Estate		6,342,329	32.3			304,758	63.0
Commercial, Financial, and Agricultural		5,397,786	27.5			69,250	14.3
Owner-Occupied Real Estate		3,833,713	19.6			45,531	9.4
Total Commercial & Industrial		9,231,499	47.1			114,781	23.7
Home Equity Lines		1,507,738	7.7			18,580	3.8
Consumer Mortgages		1,451,212	7.4			38,438	8.0
Small Business		568,881	2.8			5,042	1.0
Credit Cards		251,788	1.3			-	-
Other Retail Loans		278,603	1.4			1,865	0.4
Total Retail		4,058,222	20.6			63,925	13.2
Unearned Income		(23,767)	nm			-	nm
Total	$	19,608,283	100.0	%	$	483,464	100.0	%

LOANS OUTSTANDING BY TYPE COMPARISON

(Unaudited)

(Dollars in thousands)

		Total Loans		2Q13 vs. 1Q13			2Q13 vs. 2Q12
Loan Type		June 30, 2013	March 31, 2013	% change (1)		June 30, 2012	% change
Multi-Family	$	898,472	857,239	19.3		785,726	14.3	%
Hotels		656,471	657,462	(0.6)		706,782	(7.1)
Office Buildings		782,196	766,965	8.0		766,263	2.1
Shopping Centers		844,309	845,846	(0.7)		931,036	(9.3)
Commercial Development		177,511	206,075	(55.6)		283,115	(37.3)
Warehouses		538,274	531,015	5.5		486,055	10.7
Other Investment Property		495,290	498,213	(2.4)		457,633	8.2
Total Investment Properties		4,392,523	4,362,815	2.7		4,416,610	(0.5)
1-4 Family Construction		120,417	122,071	(5.4)		163,537	(26.4)
1-4 Family Investment Mortgage		857,063	866,921	(4.6)		919,009	(6.7)
Residential Development		220,007	248,403	(45.9)		401,278	(45.2)
Total 1-4 Family Properties		1,197,487	1,237,395	(12.9)		1,483,824	(19.3)
Land Acquisition		752,319	762,566	(5.4)		983,843	(23.5)
Total Commercial Real Estate		6,342,329	6,362,776	(1.3)		6,884,277	(7.9)
Commercial, Financial, and Agricultural		5,397,786	5,221,535	13.5		5,045,144	7.0
Owner-Occupied Real Estate		3,833,713	3,825,409	0.9		3,839,489	(0.2)
Total Commercial & Industrial		9,231,499	9,046,944	8.2		8,884,633	3.9
Home Equity Lines		1,507,738	1,508,507	(0.2)		1,603,905	(6.0)
Consumer Mortgages		1,451,212	1,378,055	21.3		1,383,915	4.9
Small Business		568,881	553,056	11.5		383,520	48.3
Credit Cards		251,788	251,618	0.3		262,402	(4.0)
Other Retail Loans		278,603	288,483	(13.7)		290,793	(4.2)
Total Retail		4,058,222	3,979,719	7.9		3,924,535	3.4
Unearned Income		(23,767)	(21,552)	nm		(13,318)	nm
Total	$	19,608,283	19,367,887	5.0	%	19,680,127	(0.4)	%

(1) Percentage change is annualized.

Synovus

CREDIT QUALITY DATA

(Unaudited)

(Dollars in thousands)		2013			2012								2nd Quarter
		Second     Quarter			First   Quarter		Fourth     Quarter		Third     Quarter		Second     Quarter		‘13 vs. ‘12     Change
Non-performing Loans	$		483,464			513,227		543,333		700,204		755,161		(36.0) %
Other Loans Held for Sale (1)			12,083			9,129		9,455		10,019		31,306		(61.4)
Other Real Estate			139,653			155,237		150,271		189,182		174,941		(20.2)
Non-performing Assets			635,200			677,592		703,059		899,405		961,408		(33.9)
Allowance for Loan Losses			334,800			351,772		373,405		420,404		453,325		(26.1)
Net Charge-Offs - Quarter			29,969			57,328		193,525		96,493		98,692		(69.6)
Net Charge-Offs / Average Loans - Quarter (2)			0.61	%		1.18		3.94		1.97		1.99
Non-performing Loans / Loans			2.47			2.65		2.78		3.55		3.84
Non-performing Assets / Loans, Other Loans Held for Sale & ORE			3.21			3.47		3.57		4.51		4.83
Allowance / Loans			1.71			1.82		1.91		2.13		2.30
Allowance / Non-performing Loans			69.27			68.54		68.72		60.04		60.03
Allowance / Non-performing Loans (3)			91.76			97.75		93.49		131.56		136.94
Past Due Loans over 90 days and Still Accruing	$		4,596			5,799		6,811		8,972		5,863		(21.6) %
As a Percentage of Loans Outstanding			0.02	%		0.03		0.03		0.05		0.03
Total Past Dues Loans and Still Accruing	$		80,678			88,330		104,825		108,633		91,962		(12.3)
As a Percentage of Loans Outstanding			0.41	%		0.46		0.54		0.55		0.47
Accruing troubled debt restructurings (TDRs)	$		635,125			623,900		673,383		698,847		687,396		(7.6)

(1) Represent impaired loans that are intended to be sold. Held for sale loans are carried at the lower of cost or fair value, less costs to sell.

(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)

	June 30, 2013			December 31, 2012		June 30, 2012
Tier 1 Capital	$	2,904,985			2,832,244		2,822,487
Total Risk-Based Capital		3,445,113			3,460,998		3,449,214
Tier 1 Capital Ratio		13.49	%		13.24		13.35
Tier 1 Common Equity Ratio		8.97			8.72		8.80
Total Risk-Based Capital Ratio		16.00			16.18		16.31
Tier 1 Leverage Ratio		11.33			11.00		10.66
Common Equity as a Percentage of Total Assets (2)		9.81			9.76		7.23
Tangible Common Equity as a Percentage of Tangible Assets (3)		9.71			9.66		7.12
Tangible Common Equity as a Percentage of Risk Weighted Assets (3)		11.96			12.07		8.84
Book Value Per Common Share (4) (5)		2.86			2.99		2.09
Tangible Book Value Per Common Share (3) (5)		2.83			2.95		2.05

(1) Current quarter regulatory capital information is preliminary.

(2) Common equity consists of Total Shareholders’ Equity less Cumulative Perpetual 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 Cumulative Perpetual Preferred Stock divided by total common shares outstanding.

(5) June 30, 2013 includes addition to common shares from the final settlement of tangible equity units (tMEDS) of 122.8 million shares. Equity and common shares for prior periods exclude impact of unexercised tangible equity units (tMEDs).