Exhibit 99.1
Synovus®
BARCLAYS
Global Financial Services Conference
September 9, 2013
Forward-looking statements
This slide presentation and certain of our other filings with the Securities and Exchange Commission contain statements that constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements through Synovus” use of words such as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “should,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the future or otherwise regarding the outlook for Synovus’ future business and financial performance and/or the performance of the commercial banking industry and economy in general. These forward-looking statements include, among others, (1) our expectations on credit trends and key credit metrics for the remainder of 2013; (2) expectations on future loan growth; (3) expectations on net interest margin; (4) expectations on mortgage banking and other fee income; (5) expectations regarding the impact of redemption of our obligations under TARP; (6) expectations regarding the impact of our ongoing efficiency initiatives and further cost savings; (7) expectations regarding future growth opportunities; and (8) the assumptions underlying our expectations. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Synovus to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, Synovus’ management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements in this report. Many of these factors are beyond Synovus’ ability to control or predict.
These forward-looking statements are based upon information presently known to Synovus” management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in Synovus’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2012 under the captions “Cautionary Notice Regarding Forward-Looking Statements” and “Risk Factors” and in Synovus” quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as otherwise may be required by law.
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Use of non-GAAP financial measures
This slide presentation contains certain non-GAAP financial measures determined by methods other than in accordance with generally accepted accounting principles. Such non-GAAP financial measures include the following: adjusted non-interest expense, core deposits, the Tier 1 common equity ratio; and the tangible common equity to tangible assets ratio. The most comparable GAAP measures to these measures are total non-interest expense, total deposits; and the ratio of total equity to total assets, respectively. Management uses these non-GAAP financial measures to assess the performance of Synovus’ core business and the strength of its capital position. Synovus believes that these non-GAAP financial measures provide meaningful additional information about Synovus to assist investors in evaluating Synovus’ operating results, financial strength and capitalization. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant charges for credit costs and other factors. Adjusted non-interest expense is a measure utilized by management to measure the success of expense management initiatives focused on reducing recurring controllable operating costs. Core deposits is a measure used by management to evaluate organic growth of deposits and the quality of deposits as a funding source. The Tier 1 common equity ratio and the tangible common equity to tangible assets ratio are used by management to assess the strength of our capital position. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The computations of the non-GAAP financial measures used in this slide presentation are set forth in the appendix to this slide presentation.
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The road from 2008
Building a foundation for growth
2008
Received $968 million in TARP funds
2009
Completed $600 million equity offering
2010
2008
Completed $1.1 billion equity offering Consolidated 30 bank charters into one
Received $968 million in TARP funds
Executed $573 million strategic distressed asset sale in 4Q10
2011
Launched efficiency initiative
Reduced adjusted non-interest expense* by $95 million or 12%
Returned to profitability
2012
2009
Completed $300 million debt offering
Executed $545 million strategic distressed asset sale in 4Q12
Reduced Bank classified assets ratio below 40%
Recaptured $800 million DTA
Decreased adjusted non-interest expense* by an additional $25 million
2013
Announced additional $30 million in expense reductions Bank and Holding Company MOUs lifted
Completed FDIC-assisted assumption of Sunrise Bank deposits
Upgraded by Fitch Ratings, Moody’s, S&P Completed common and preferred stock offerings Redeemed TARP
Completed $600 million equity offering
* Non-GAAP financial measure; see appendix
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Building a foundation for growth
2008
Received $968 million in TARP funds
2009
Completed $600 million equity offering
2010
2010
Completed $1.1 billion equity offering Consolidated 30 bank charters into one
Executed $573 million strategic distressed asset sale in 4Q10
2011
Launched efficiency initiative
Reduced adjusted non-interest expense* by $95 million or 12% Returned to profitability
2012
Completed $300 million debt offering
Executed $545 million strategic distressed asset sale in 4Q12
Reduced Bank classified assets ratio below 40%
Recaptured $800 million DTA
Decreased adjusted non-interest expense* by an additional $25& million
Completed $1.1 billion equity offering Consolidated 30 bank charters into one Executed $573 million strategic distressed asset sale in 4Q10
Established Large Corporate Banking Group (LCBG)
2013
Announced additional $30 million in expense reductions Bank and Holding Company MOUs lifted
Completed FDIC-assisted assumption of Sunrise Bank deposits Upgraded by Fitch Ratings, Moody’s, S&P Completed common and preferred stock offerings Redeemed TARP
* Non-GAAP financial measure; see appendix
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Building a foundation for growth
2008
Received $968 million in TARP funds.
2009
2011
Completed $600 million equity offering
2010
Completed $1.1 billion equity offering Consolidated 30 bank charters into one
Executed $573 million strategic distressed asset sale in 4Q10
2011
Launched efficiency initiative
Reduced adjusted non-interest expense* by $95 million or 12%
Returned to profitability
2012
Completed $300 million debt offering
Executed $545 million strategic distressed asset sale in 4Q12 Reduced Bank classified assets ratio below 40% Recaptured $800 million DTA
Decreased adjusted non-interest expense* by an additional S25 million
2013
Launched efficiency initiative
Reduced adjusted non-interest expense* by
$95 million or 12% Returned to profitability
Reorganized Treasury Management Group Expanded Large Corporate Banking Group
adding Senior Housing team Adopted a bank-wide unified sales
management platform
Announced additional $30 million in expense reductions Bank and Holding Company MOUs lifted
Completed FDIC-assisted assumption of Sunrise Bank deposits Upgraded by Fitch Ratings, Moody’s, S&P Completed common and preferred stock offerings Redeemed TARP
* Non-GAAP financial measure; see appendix
7
Building a foundation for growth
2008
Received $968 million in TARP funds.
2009
2012
Completed $600 million equity offering
2010
Completed $1.1 billion equity offering Consolidated 30 bank charters into one
Executed $573 million strategic distressed asset sale in 4Q10
2011
Launched efficiency initiative
Reduced adjusted non-interest expense* by $95 million or 12% Returned to profitability
2012
Completed $300 million debt offering
Executed $545 million strategic distressed asset sale in 4Q12 Reduced Bank classified assets ratio below 40% Recaptured $800 million DTA
Decreased adjusted non-interest expense* by an additional S25 million
2013
Completed $300 million debt offering Executed $545 million strategic distressed
asset sale in 4Q12 Reduced Bank classified assets ratio
below 40% Recaptured $800 million DTA Decreased adjusted non-interest expense*
by an additional $25 million
Established Large Corporate Real Estate Group
Enhanced specialized mortgage products
Announced additional $30 million in expense reductions Bank and Holding Company MOUs lifted
Completed FDIC-assisted assumption of Sunrise Bank deposits Upgraded by Fitch Ratings, Moody’s, S&P Completed common and preferred stock offerings Redeemed TARP
* Non-GAAP financial measure; see appendix
8
Building a foundation for growth
2008
Received $968 million in TARP funds
2009
2013
Completed $600 million equity offering
2010
Completed $1.1 billion equity offering Consolidated 30 bank charters into one
Executed $573 million strategic distressed asset sale in 4Q10
2011
Launched efficiency initiative
Reduced adjusted non-interest expense* by $95 million or 12% Returned to profitability
2012
Completed $300 million debt offering
Executed $545 million strategic distressed asset sale in 4Q12 Reduced Bank classified assets ratio below 40% Recaptured $800 million DTA
Decreased adjusted non-interest expense* by an additional $25 million
2013
Announced additional $30 million in expense reductions Bank and Holding Company MOUs lifted
Completed FDIC-assisted assumption of Sunrise Bank deposits Upgraded by Fitch Ratings, Moody’s, S&P Completed common and preferred stock offerings Redeemed TARP
Announced additional $30 million in
expense reductions Bank and Holding Company MOUs lifted Completed FDIC-assisted assumption of
Sunrise Bank deposits Upgraded by Fitch Ratings, Moody’s, S&P Completed common and preferred stock
offerings
Redeemed TARP
Loan growth and continued repositioning of loan portfolio
* Non-GAAP financial measure; see appendix
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TARP redemption
Common Stock Offering 7/19/13
Total Offering $185 million
Shares Offered 59.9 million
Closing Stock Price 7/18/13 $3.09
Offering Price $3.09
Closing Stock Price 7/19/13 $3.24
Non-cumulative Perpetual Preferred Stock Offering 7/22/13
Total Offering $130 million
Shares Offered 5.2 million
Offering Price $25
Call Date on or after 8/1/18
Dividend Rate 7.875%
TARP shares redeemed from the US Treasury on July 26 ($968 million)
$680 million cash dividend from bank subsidiary funded over two-thirds of TARP redemption.
Common stock issued as a percentage of TARP outstanding was 19%
Annual cost of TARP (dividends and discount accretion) was approximately $59 million. Elimination of this cost net of impact from transactions undertaken to facilitate TARP redemption, is expected to result in a net annualized increase to diluted EPS of approximately 4 cents (based on annualized 2Q13 earnings).
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2Q13 summary
Profitability
Credit
Balance Sheet
Revenue
Expense
Net Income available to common shareholders of $30.7 million or $0.03 per diluted common share
Strong improvement in credit quality as credit costs declined 51% vs. 1Q13 and 66% vs. 2Q12
Total loans grew $240 million sequentially or 5% annualized
Core deposits* grew $144 million from 1Q13
Net interest income up slightly with modest decline in net interest margin
Fee income stable; mortgage banking remained strong
Adjusted non-interest expense* down 6% vs. 2Q12
* Non-GAAP financial measure; see appendix
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strong improvement in credit trends
(in millions) Credit Costs(1) Net charge-offs(3)
$190 $195 (2) (4)
$127 $130
$63 $65
$0
$0
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
(5)
NPL Inflows
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
(6)
NPLs
$310
$895
$207
$597
$103
$298
$0
$0
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
(1) Consist of provision for loan losses plus other credit costs. Other credit costs consist primarily of losses on ORE, provision for losses on unfunded commitments, and charges related to other loans held for sale.
(2) Includes approximately $157 million from sales of distressed assets in 4Q12
(3) As a % of average loans, annualized
(4) Includes approximately $164 million from distressed loan sales in 4Q12
(5) Includes addition of one larger credit relationship in 4Q12. Substantially all of this relationship was previously classified as substandard accruing.
(6) Excludes held-for-sale (HFS) loans
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Pass rated loans increased $544.3 million from 1Q13
(dollars in millions) $20,000
$ 19,680 755
Loan Portfolio by Risk Grade
$19,368
513
$ 19,608 483
1,067
18%
1,271
16,927
$15,000
$10,000
89%
82%
$5,000
2Q13 Non-Performing*
* Excludes HFS loans
657
11%
1,652
610
17,471
1,044
16,206
2Q12
Pass Special Mention
1Q13
Accruing Substandard
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Credit quality expectations for the remainder of the year
Credit costs lower than the first half of 2013
Charge-off ratio below 1%
Distressed asset dispositions of $50 to $75 million each quarter
NPA ratio below 3% by year end
NPL inflows continue downward trend
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The road ahead
Current banking environment
Expense management is a way of life for the industry
Small business activity remains sluggish
Large corporate borrowers are active
Mid- and large-sized businesses expect more value-added services, not just loans
Pricing pressure continues
Fee income generation is under pressure
Mortgage lending impacted by rising interest rates
Branch utilization is changing and other channel use is expanding
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Synovus is well-positioned for the future
A strong banking franchise in an improving economy
A strengthened balance sheet and solid operating foundation
A roadmap focused on execution
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Synovus is well-positioned for the future
A strong banking franchise in an improving economy
Targeting high-potential consumer, business, and larger corporate borrowers who value our relationship-based delivery model
Consistently recognized for customer service excellence in retail, small business, and middle market banking
Synovus Family Asset Management again listed in Bloomberg’s 2013 ranking as one of the top 50 family offices in the world
Committed to retention and expansion of market share in attractive Southeastern footprint
-Always evaluating current bank market potential for continued growth and financial performance
Strategic new market and business line additions
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Recently launched initiatives demonstrate our strategic focus on footprint opportunities
Metro Orlando, Florida Market Expansion
Metro Orlando among top locations for business growth
Logical next-step expansion market for Synovus in Florida, complementing existing franchise in Tampa, Jacksonville and panhandle
Added team of experienced Commercial, Private, and CRE bankers
Equipment Finance
Hired strong, proven, in market leadership
Large manufacturing presence in Southeast - big users of heavy equipment
Opportunity for more than $1 billion in loan growth over the next five years
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Synovus is well-positioned for the future
A strengthened balance sheet
Loan Portfolio
Balance sheet stability from reduced exposure to higher-risk assets and addition of new, high-quality credit
40.2%
4Q08
44.1%
15.7% C&I
Retail CRE
32.3%
relationships
Balance sheet re-mixing improves overall financial performance
Disciplined approach to new customer acquisition across all lending products
47.0%
2Q13
20.7%
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Synovus is well-positioned for the future
Solid operating foundation
Culture of expense management and control
- Expect decline in adjusted non-interest expense during 2H13 from 2Q run rate
Continued investment in the future of Synovus
-IT and e-channel investments to capitalize on changing customer behavior and to improve customer experience
-Acquisition and development of talent
Solid capital position
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Pro forma capital ratios post TARP redemption
As Reported 1Q13 As Reported 2Q13 2Q13 Pro Forma Adjusted for 3Q13 Capital Actions(1) 2Q13 Pro Forma Further Adjusted for TARP Redemption(2)
Tier 1 capital ratio 13.50% 13.49 14.88 10.38
Tier 1 common equity ratio(3) 8.93 8.97 9.78 9.76
Total risk-based capital 16.45 15.99 17.38 12.89
Leverage ratio 11.27 11.33 12.50 8.72
Tangible common equity ratio(3) 9.89% 9.71 10.26 10.62
(dollars in millions) 4Q12 1Q13 2Q13
Disallowed deferred tax asset $710.5 687.0 675.0
As a % of risk-weighted assets 3.32% 3.24 3.13
(l) Pro forma includes $185 million common stock offering and $130 million preferred stock offering, net of $15 million in offering costs (2) Pro forma after equity offerings described in note (1) and TARP redemption of $967.87 million; net of acceleration of accretion of
unamortized discount on TARP preferred stock of $5.1 million (3) Non-GAAP financial measure; see appendix
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Synovus is well-positioned for the future
A roadmap focused on execution
TARP redemption returns Synovus to an offensive posture
Proven franchise driven by relationship-based delivery model
Expanding in solidly performing markets
Seasoned talent acquisition in high-opportunity markets and business lines
Continued enhancement of products and delivery model as we intensify our focus on customers
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Synovus is well-positioned for the future
A strong banking franchise in an improving economy
A strengthened balance sheet and solid operating foundation
A roadmap focused on execution
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APPENDIX
Non-GAAP Financial Measures
(in millions)
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Total non-interest expense $203 $208 $191 $213 $182 $181
Other credit costs* (25) (26) (22) (39) (13) (11)
Restructuring charges (1) (1) (1) (2) (5) (2)
Visa indemnification charges (3) (2) (1) (1) - -
Adjusted non-interest expense $174 $179 $167 $171 $164 $168
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Total deposits $22,138 $21,565 $20,847 $21,057 $20,561 $20,711
Brokered deposits (1,407) (1,149) (920) (1,093) (1,333) (1,338)
Core deposits $20,731 $20,416 $19,927 $19,964 $19,228 $19,373
* Other credit costs consist primarily of losses on ORE, provision for losses on unfunded commitments, and charges related to other loans held for sale
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Non-GAAP Financial Measures, continued
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Total shareholders’ equity $2,822 $2,853 $2,876 $3,569 $3,578 $3,568
Add/Subtract: Accumulated other comprehensive loss (income) 2 (7) (16) (4) (3) 33
Subtract: Goodwill (24) (24) (24) (24) (24) (24)
Subtract: Other intangible assets, net (8) (7) (6) (5) (5) (4)
Subtract: Disallowed deferred tax assets - - - (710) (687) (675)
Add: Other items 8 7 6 6 7 7
Subtract: Series A Preferred Stock (950) (952) (955) (957) (960) (963)
Subtract: Qualifying trust preferred securities (10) (10) (10) (10) (10) (10)
Tier 1 common equity 1,840 1,860 1,871 1,865 1,896 1,932
Risk weighted assets 21,230 21,146 21,443 21,388 21,235 21,542
Tier 1 common equity ratio 8.67% 8.80% 8.73% 8.72% 8.93% 8.97%
(dollars in millions) 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Total assets $27,065 $26,294 $25,764 $26,760 $26,213 $26,563
Subtract: Goodwill (24) (24) (24) (24) (24) (24)
Subtract: Other intangible assets, net (8) (7) (6) (5) (5) (4)
Tangible assets $27,033 $26,263 $25,734 $26,731 $26,184 $26,535
Total shareholders’ equity $2,822 $2,853 $2,876 $3,569 $3,578 $3,568
Subtract: Goodwill (24) (24) (24) (24) (24) (24)
Subtract: Other intangible assets, net (8) (7) (6) (5) (5) (4)
Subtract: Series A Preferred Stock (950) (952) (955) (957) (960) (963)
Tangible common equity $1,840 $1,870 $1,891 $2,583 $2,589 $2,577
Tangible common equity to tangible assets ratio 6.81% 7.12% 7.35% 9.66% 9.89% 9.71%
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