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

Exhibit 99.2

Synovus

INCOME STATEMENT DATA		Nine Months Ended
(Unaudited)
(Dollars in thousands, except per share data)		September 30,
		2013			2012			Change
Interest income	$		695,755			764,140			(8.9)	%
Interest expense			89,894			117,479			(23.5)
Net interest income			605,861			646,661			(6.3)
Provision for loan losses			55,534			173,843			(68.1)
Net interest income after provision for loan losses			550,327			472,818			16.4
							��
Non-interest income:
Service charges on deposit accounts			58,142			57,319			1.4
Fiduciary and asset management fees			32,471			31,966			1.6
Brokerage revenue			21,231			19,786			7.3
Mortgage banking income			19,569			23,247			(15.8)
Bankcard fees			22,662			23,938			(5.3)
Investment securities gains, net			2,571			30,909			(91.7)
Other fee income			16,461			14,927			10.3
(Decrease) increase in fair value of private equity investments, net			(856)			6,428			nm
Other non-interest income			21,139			25,329			(16.5)
Total non-interest income			193,390			233,849			(17.3)
Non-interest expense:
Salaries and other personnel expense			276,190			280,972			(1.7)
Net occupancy and equipment expense			77,025			79,512			(3.1)
FDIC insurance and other regulatory fees			24,059			37,171			(35.3)
Foreclosed real estate expense, net			28,800			55,677			(48.3)
Losses on other loans held for sale, net			487			4,005			(87.8)
Professional fees			28,922			29,270			(1.2)
Third-party services			30,446			28,466			7.0
Visa indemnification charges			801			5,546			(85.6)
Restructuring charges			7,295			3,444			111.8
Other operating expenses			76,774			78,827			(2.6)
Total non-interest expense			550,799			602,890			(8.6)
Income before income taxes			192,918			103,777			85.9
Income tax expense (benefit)			72,114			(2,393)			nm
Net income			120,804			106,170			13.8
Dividends and accretion of discount on Series A Preferred Stock			38,100			43,968			(13.3)
Net income available to common shareholders	$		82,704			62,202			33.0
Net income per common share, basic			0.10			0.08			20.8
Net income per common share, diluted			0.09			0.07			30.4
Cash dividends declared per common share			0.03			0.03			-
Return on average assets			0.61	%		0.53			15.1
Return on average common equity			4.16			4.33			(3.9)
Weighted average common shares outstanding, basic			865,565			786,429			10.1	%
Weighted average common shares outstanding, diluted			927,329			909,717			1.9

nm - not meaningful

Synovus

INCOME STATEMENT DATA
(Unaudited)
(Dollars in thousands, except per share data)		2013									2012					3rd Quarter
		Third     Quarter			Second     Quarter			First     Quarter			Fourth     Quarter			Third     Quarter		‘13 vs. ‘12  Change
Interest income	$		233,852			231,513			230,391			240,000			247,676		(5.6)	%
Interest expense			29,882			29,436			30,577			32,544			35,331		(15.4)
Net interest income			203,970			202,077			199,814			207,456			212,345		(3.9)
Provision for loan losses			6,761			13,077			35,696			146,526			63,572		(89.4)
Net interest income after provision for loan losses			197,209			189,000			164,118			60,930			148,773		32.6
Non-interest income:
Service charges on deposit accounts			19,426			19,195			19,521			20,883			20,404		(4.8)
Fiduciary and asset management fees			10,389			11,111			10,971			10,537			10,340		0.5
Brokerage revenue			6,636			7,002			7,594			7,127			6,844		(3.0)
Mortgage banking income			5,314			7,338			6,917			9,025			9,261		(42.6)
Bankcard fees			7,760			7,838			7,064			10,137			7,866		(1.3)
Investment securities gains, net			1,124			1,403			45			8,233			6,656		(83.1)
Other fee income			5,199			5,775			5,487			6,211			5,276		(1.5)
Increase (decrease) in fair value of private equity investments, net			284			(883)			(257)			1,805			(944)		nm
Other non-interest income			7,446			6,313			7,379			6,159			7,530		(1.1)
Total non-interest income			63,578			65,092			64,721			80,117			73,233		(13.2)
Non-interest expense:
Salaries and other personnel expense			92,794			89,479			93,917			94,901			93,177		(0.4)
Net occupancy and equipment expense			26,475			26,383			24,167			26,063			26,647		(0.6)
FDIC insurance and other regulatory fees			7,639			7,941			8,480			8,237			9,205		(17.0)
Foreclosed real estate expense, net			10,359			7,502			10,940			34,978			11,997		(13.7)
Losses (gains) on other loans held for sale, net			408			(86)			165			675			4,104		(90.1)
Professional fees			11,410			10,416			7,095			12,037			10,074		13.3
Third-party services			10,151			10,366			9,929			9,540			9,429		7.7
Visa indemnification charges			-			764			37			757			833		(100.0)
Restructuring charges			687			1,758			4,850			1,969			1,192		(42.4)
Other operating expenses			27,405			26,663			22,706			24,189			24,834		10.4
Total non-interest expense			187,328			181,186			182,286			213,346			191,492		(2.2)
Income before income taxes			73,459			72,906			46,553			(72,299)			30,514		140.7
Income tax expense (benefit)			27,765			27,371			16,979			(796,339)			(211)		nm
Net income			45,694			45,535			29,574			724,040			30,725		48.7
Dividends and accretion of discount on Series A Preferred Stock			8,506			14,818			14,776			14,736			14,695		(42.1)
Net income available to common shareholders	$		37,188			30,717			14,798			709,304			16,030		132.0
Net income per common share, basic			0.04			0.04			0.02			0.90			0.02		90.7
Net income per common share, diluted			0.04			0.03			0.02			0.78			0.02		120.1
Cash dividends declared per common share			0.01			0.01			0.01			0.01			0.01		-
Return on average assets *			0.69	%		0.69	%		0.46	%		11.13	%		0.47		46.8
Return on average common equity *			5.40			4.70			2.30			149.46			3.30		63.6
Weighted average common shares outstanding, basic			956,694			851,093			787,043			786,576			786,576		21.6	%
Weighted average common shares outstanding, diluted			959,680			910,937			910,835			911,251			910,396		5.4

nm - not meaningful

* - ratios are annualized

Synovus

BALANCE SHEET DATA		September 30, 2013		December 31, 2012		September 30, 2012
(Unaudited)
(In thousands, except share data)
ASSETS
Cash and cash equivalents	$		514,694		614,630		454,028
Interest bearing funds with Federal Reserve Bank			966,435		1,498,390		815,156
Interest earning deposits with banks			14,060		23,442		27,215
Federal funds sold and securities purchased under resale agreements			80,177		113,517		116,318
Trading account assets, at fair value			17,363		11,102		5,953
Mortgage loans held for sale, at fair value			61,232		212,663		246,224
Other loans held for sale			9,351		10,690		11,254
Investment securities available for sale, at fair value			3,151,344		2,981,112		3,229,440
Loans, net of deferred fees and costs			19,711,610		19,541,690		19,731,865
Allowance for loan losses			(318,612)		(373,405)		(420,404)
Loans, net			19,392,998		19,168,285		19,311,461
Premises and equipment, net			476,088		479,546		475,222
Goodwill			24,431		24,431		24,431
Other intangible assets, net			3,783		5,149		5,895
Other real estate			126,640		150,271		189,182
Deferred tax asset, net			763,050		806,406		1,985
Other assets			616,714		660,378		850,880
Total assets	$		26,218,360		26,760,012		25,764,644
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Non-interest bearing deposits	$		5,358,659		5,665,527		5,503,288
Interest bearing deposits, excluding brokered deposits			14,339,997		14,298,768		14,423,583
Brokered deposits			1,275,200		1,092,749		919,959
Total deposits			20,973,856		21,057,044		20,846,830
Federal funds purchased, securities sold under repurchase agreements, and other short-term liabilities			194,613		201,243		165,865
Long-term debt			1,885,057		1,726,455		1,654,183
Other liabilities			232,974		205,839		222,066
Total liabilities			23,286,500		23,190,581		22,888,944
Shareholders’ equity:
Series A Preferred Stock - no par value, 967,870 outstanding at December 31, 2012 and September 30, 2012			-		957,327		954,690
Series C Preferred Stock - no par value, 5,200,000 outstanding at September 30, 2013			125,400		-		-
Common stock - $1.00 par value. 972,230,238 outstanding at September 30, 2013, 786,579,240 outstanding at December 31, 2012, and 786,575,516 outstanding at September 30, 2012			977,924		792,273		792,269
Additional paid-in capital			2,138,593		2,189,874		2,202,903
Treasury stock, at cost - 5,693,452 shares			(114,176)		(114,176)		(114,176)
Accumulated other comprehensive (loss) income			(29,514)		4,101		16,156
Accumulated deficit			(166,367)		(259,968)		(976,142)
Total shareholders’ equity			2,931,860		3,569,431		2,875,700
Total liabilities and shareholders’ equity	$		26,218,360		26,760,012		25,764,644

Synovus

AVERAGE BALANCES AND YIELDS/RATES (1)
(Unaudited)
(Dollars in thousands)
	2013							2012
	Third Quarter			Second Quarter		First Quarter		Fourth Quarter		Third Quarter
Interest Earning Assets
Taxable investment securities (2)	$	3,062,976			3,034,152		2,984,129		3,069,000		3,495,838
Yield		1.79	%		1.70		1.42		1.62		1.67
Tax-exempt investment securities (2) (4)	$	9,835			11,435		14,362		17,377		19,503
Yield (taxable equivalent)		6.26	%		6.47		6.34		6.59		6.47
Trading account assets	$	13,806			7,847		8,629		9,600		12,343
Yield		4.50	%		6.34		7.12		8.04		8.27
Commercial loans (3) (4)	$	16,067,424			16,075,832		16,000,000		16,171,318		16,102,353
Yield		4.37	%		4.39		4.48		4.50		4.65
Consumer loans (3)	$	3,528,057			3,454,874		3,461,622		3,514,256		3,529,528
Yield		4.61	%		4.62		4.68		4.70		4.72
Allowance for loan losses	$	(328,084)			(351,075)		(372,239)		(405,237)		(446,495)
Loans, net (3)	$	19,267,397			19,179,631		19,089,383		19,280,337		19,185,386
Yield		4.50	%		4.52		4.54		4.65		4.79
Mortgage loans held for sale	$	85,493			129,742		179,507		208,839		175,199
Yield		4.07	%		4.35		3.80		3.72		4.03
Federal funds sold, due from Federal Reserve Bank, and other short-term investments	$	1,375,921			1,550,113		1,343,652		1,366,422		1,215,743
Yield		0.24	%		0.24		0.24		0.24		0.24
Federal Home Loan Bank and Federal Reserve Bank stock (5)	$	70,741			65,014		65,330		66,630		53,239
Yield		2.30	%		2.35		2.36		2.03		1.87
Total interest earning assets	$	23,886,169			23,977,934		23,684,992		24,018,205		24,157,251
Yield		3.89	%		3.88		3.95		3.99		4.09
Interest Bearing Liabilities
Interest bearing demand deposits	$	3,933,902			3,895,675		3,839,707		3,872,025		3,344,561
Rate		0.23	%		0.18		0.18		0.18		0.19
Money market accounts	$	6,148,289			6,072,155		6,135,649		6,251,374		6,751,607
Rate		0.33	%		0.33		0.33		0.33		0.33
Savings deposits	$	607,144			609,832		581,792		558,726		557,086
Rate		0.11	%		0.11		0.11		0.10		0.10
Time deposits under $100,000	$	1,526,974			1,537,639		1,581,092		1,648,554		1,763,864
Rate		0.62	%		0.64		0.69		0.74		0.85
Time deposits over $100,000	$	2,022,719			1,891,624		1,958,870		2,015,582		2,176,488
Rate		0.84	%		0.88		0.93		0.99		1.11
Brokered money market accounts	$	202,802			202,532		202,734		180,216		186,336
Rate		0.27	%		0.31		0.32		0.34		0.33
Brokered time deposits	$	1,130,491			1,131,444		1,013,461		800,434		820,908
Rate		0.70	%		0.77		0.99		1.42		1.83
Total interest bearing deposits	$	15,572,321			15,340,901		15,313,305		15,326,911		15,600,850
Rate		0.42	%		0.42		0.44		0.47		0.54
Federal funds purchased and other short-term liabilities	$	195,717			206,046		214,661		266,431		350,183
Rate		0.14	%		0.15		0.17		0.17		0.17
Long-term debt	$	1,885,385			1,762,173		1,688,580		1,740,588		1,372,741
Rate		2.85	%		3.06		3.26		3.31		4.09
Total interest bearing liabilities	$	17,653,423			17,309,120		17,216,546		17,333,930		17,323,774
Rate		0.67	%		0.68		0.72		0.75		0.81
Non-interest bearing demand deposits	$	5,306,447			5,327,795		5,232,587		5,466,312		5,560,827
Effective cost of funds		0.49	%		0.49		0.52		0.54		0.58
Net interest margin		3.40	%		3.39		3.43		3.45		3.51
Taxable equivalent adjustment	$	529			557		618		766		761

(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)
		September 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	$		953,632		4.8	%	$		2,991			0.7	%
Hotels			611,756		3.1				452			0.1
Office Buildings			799,613		4.1				5,623			1.2
Shopping Centers			866,460		4.4				11,389			2.5
Commercial Development			167,435		0.8				47,150			10.5
Warehouses			552,378		2.8				2,184			0.5
Other Investment Property			489,839		2.5				9,795			2.2
Total Investment Properties			4,441,113		22.5				79,584			17.8
1-4 Family Construction			125,134		0.6				3,199			0.7
1-4 Family Investment Mortgage			853,060		4.3				25,820			5.7
Residential Development			196,051		1.0				17,781			3.9
Total 1-4 Family Properties			1,174,245		6.0				46,800			10.4
Land Acquisition			730,135		3.7				152,911			33.9
Total Commercial Real Estate			6,345,493		32.2				279,295			61.9
Commercial, Financial, and Agricultural			5,415,424		27.5				64,907			14.4
Owner-Occupied Real Estate			3,811,649		19.3				41,559			9.2
Small Business			591,377		2.9				5,475			1.2
Total Commercial & Industrial			9,818,450		49.8				111,941			24.8
Home Equity Lines			1,549,582		7.9				18,996			4.2
Consumer Mortgages			1,482,861		7.5				38,902			8.6
Credit Cards			253,805		1.3				-			-
Other Retail Loans			286,421		1.5				1,745			0.4
Total Retail			3,572,669		18.0				59,643			13.2
Unearned Income			(25,002)		nm				-			nm
Total	$		19,711,610		100.0	%	$		450,879			100.0	%
LOANS OUTSTANDING BY TYPE COMPARISON
(Unaudited)
(Dollars in thousands)
Loan Type		Total Loans     September 30, 2013		June 30, 2013				3Q13 vs. 2Q13      % change (1)			September 30, 2012			3Q13 vs. 3Q12      % change
Multi-Family	$		953,632		898,472				24.4			759,500			25.6	%
Hotels			611,756		656,471				(27.0)			689,196			(11.2)
Office Buildings			799,613		782,196				8.8			772,961			3.4
Shopping Centers			866,460		844,309				10.4			918,224			(5.6)
Commercial Development			167,435		177,511				(22.5)			279,585			(40.1)
Warehouses			552,378		538,274				10.4			508,770			8.6
Other Investment Property			489,839		495,290				(4.4)			474,228			3.3
Total Investment Properties			4,441,113		4,392,523				4.4			4,402,464			0.9
1-4 Family Construction			125,134		120,417				15.5			152,598			(18.0)
1-4 Family Investment Mortgage			853,060		857,063				(1.9)			906,744			(5.9)
Residential Development			196,051		220,007				(43.2)			367,908			(46.7)
Total 1-4 Family Properties			1,174,245		1,197,487				(7.7)			1,427,250			(17.7)
Land Acquisition			730,135		752,319				(11.7)			909,420			(19.7)
Total Commercial Real Estate			6,345,493		6,342,329				0.2			6,739,134			(5.8)
Commercial, Financial, and Agricultural			5,415,424		5,397,786				1.3			5,163,546			4.9
Owner-Occupied Real Estate			3,811,649		3,833,713				(2.3)			3,877,578			(1.7)
Small Business			591,377		568,881				15.7			444,784			33.0
Total Commercial & Industrial			9,818,450		9,800,380				0.7			9,485,908			3.5
Home Equity Lines			1,549,582		1,507,738				11.0			1,572,986			(1.5)
Consumer Mortgages			1,482,861		1,451,212				8.7			1,416,820			4.7
Credit Cards			253,805		251,788				3.2			257,922			(1.6)
Other Retail Loans			286,421		278,603				11.1			276,148			3.7
Total Retail			3,572,669		3,489,341				9.5			3,523,876			1.4
Unearned Income			(25,002)		(23,767)				nm			(17,053)			nm
Total	$		19,711,610		19,608,283				2.1	%		19,731,865			(0.1)	%

(1) Percentage change is annualized.

Synovus

CREDIT QUALITY DATA
(Unaudited)
(Dollars in thousands)		2013							2012				3rd Quarter
		Third         Quarter			Second Quarter		First Quarter		Fourth Quarter		Third         Quarter		‘13 vs. ‘12         Change
Non-performing Loans	$		450,879			483,464		513,227		543,333		700,204		(35.6) %
Other Loans Held for Sale (1)			9,351			12,083		9,129		9,455		10,019		(6.7)
Other Real Estate			126,640			139,653		155,237		150,271		189,182		(33.1)
Non-performing Assets			586,870			635,200		677,592		703,059		899,405		(34.7)
Allowance for Loan Losses			318,612			334,880		351,772		373,405		420,404		(24.2)
Net Charge-Offs - Quarter			23,030			29,969		57,328		193,525		96,493		(76.1)
Net Charge-Offs / Average Loans - Quarter (2)			0.47	%		0.61		1.18		3.94		1.97
Non-performing Loans / Loans			2.29			2.47		2.65		2.78		3.55
Non-performing Assets / Loans, Other Loans Held for Sale & ORE			2.96			3.21		3.47		3.57		4.51
Allowance / Loans			1.62			1.71		1.82		1.91		2.13
Allowance / Non-performing Loans			70.66			69.27		68.54		68.72		60.04
Allowance / Non-performing Loans (3)			91.84			91.76		97.75		93.49		131.56
Past Due Loans over 90 days and Still Accruing	$		4,738			4,596		5,799		6,811		8,972		(47.2) %
As a Percentage of Loans Outstanding			0.02	%		0.02		0.03		0.03		0.05
Total Past Dues Loans and Still Accruing	$		78,906			80,678		88,330		104,825		108,633		(27.4)
As a Percentage of Loans Outstanding			0.40	%		0.41		0.46		0.54		0.55
Accruing troubled debt restructurings (TDRs)	$		574,236			635,125		623,900		673,383		698,847		(17.8)
(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)
		September 30, 2013			December 31, 2012		September 30, 2012
Tier 1 Capital	$		2,292,757			2,832,244		2,835,950
Total Risk-Based Capital			2,835,116			3,460,998		3,465,950
Tier 1 Capital Ratio			10.55	%		13.24		13.23
Tier 1 Common Equity Ratio			9.93			8.72		8.73
Total Risk-Based Capital Ratio			13.04			16.18		16.16
Tier 1 Leverage Ratio			8.96			11.00		10.97
Common Equity as a Percentage of Total Assets (2)			10.70			9.76		7.46
Tangible Common Equity as a Percentage of Tangible Assets (3)			10.61			9.66		7.35
Tangible Common Equity as a Percentage of Risk Weighted Assets (3)			12.78			12.07		8.82
Book Value Per Common Share (4) (5)			2.89			2.99		2.11
Tangible Book Value Per Common Share (3) (5)			2.86			2.95		2.07
(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) September 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).