Synovus Financial (SNV) 8-K Synovus Announces Earnings for the Second Quarter of 2015

Exhibit 99.2

Synovus

INCOME STATEMENT DATA		Six Months Ended
(Unaudited)
(Dollars in thousands, except per share data)		June 30,
		2015			2014		Change
Interest income	$		465,055			460,595		1.0	%
Interest expense			58,148			55,029		5.7
Net interest income			406,907			405,566		0.3
Provision for loan losses			11,034			21,795		(49.4)
Net interest income after provision for loan losses			395,873			383,771		3.2
Non-interest income:
Service charges on deposit accounts			38,928			38,451		1.2
Fiduciary and asset management fees			23,414			22,329		4.9
Brokerage revenue			14,032			12,920		8.6
Mortgage banking income			13,995			8,794		59.1
Bankcard fees			16,576			16,212		2.2
Investment securities gains, net			2,710			1,331		103.6
Other fee income			9,851			9,791		0.6
Gain on sale of Memphis branches, net(1)			-			5,789		nm
Other non-interest income			15,181			17,952		(15.4)
Total non-interest income			134,687			133,569		0.8
Non-interest expense:
Salaries and other personnel expense			191,054			185,985		2.7
Net occupancy and equipment expense			52,713			52,480		0.4
Third-party processing expense			21,015			19,560		7.4
FDIC insurance and other regulatory fees			13,725			17,531		(21.7)
Professional fees			12,011			15,901		(24.5)
Advertising expense			6,309			8,757		(28.0)
Foreclosed real estate expense, net			13,847			9,745		42.1
Visa indemnification charges			729			752		(3.1)
Litigation contingency expense(2)			4,400			-		nm
Restructuring charges, net			(102)			16,293		nm
Other operating expenses			41,012			39,361		4.2
Total non-interest expense			356,713			366,365		(2.6)
Income before income taxes			173,847			150,975		15.1
Income tax expense			64,091			55,686		15.1
Net income			109,756			95,289		15.2
Dividends on preferred stock			5,119			5,119		0.0
Net income available to common shareholders	$		104,637			90,170		16.0	%
Net income per common share, basic	$		0.78			0.65		20.4	%
Net income per common share, diluted			0.78			0.65		20.2
Cash dividends declared per common share			0.20			0.14		42.9
Return on average assets			0.80	%		0.73		7	bps
Return on average common equity			7.27			6.33		94
Weighted average common shares outstanding, basic			133,935			138,961		(3.6)	%
Weighted average common shares outstanding, diluted			134,678			139,535		(3.5)

nm - not meaningful

bps - basis points

(1) Consists of gain, net of associated costs, from the 1Q14 sale of certain loans, premises, deposits, and other assets and liabilities of the Memphis, Tennessee branches of Trust One Bank, a division of Synovus Bank.

(2) Amount for six months ended June 30, 2014 is not reported separately because it is not material.

Synovus

  INCOME STATEMENT DATA

  (Unaudited)

  (In thousands, except per share data)

		2015					2014							2nd Quarter
		Second			First		Fourth		Third		Second			‘15 vs. ‘14
		Quarter			Quarter		Quarter		Quarter		Quarter			Change
Interest income	$		233,654			231,401		234,703		233,394		232,213			0.6	%
Interest expense			30,010			28,138		27,248		27,131		27,162			10.5
Net interest income			203,644			203,263		207,455		206,263		205,051			(0.7)
Provision for loan losses			6,636			4,397		8,193		3,843		12,284			(46.0)
Net interest income after provision for loan losses			197,008			198,866		199,262		202,420		192,767			2.2
Non-interest income:
Service charges on deposit accounts			19,795			19,133		20,287		20,159		19,238			2.9
Fiduciary and asset management fees			11,843			11,571		11,690		11,207		11,296			4.8
Brokerage revenue			6,782			7,251		6,887		7,281		6,707	��		1.1
Mortgage banking income			7,511			6,484		4,895		4,665		5,283			42.2
Bankcard fees			8,499			8,077		8,536		8,182		8,695			(2.3)
Investment securities gains, net			1,985			725		-		-		-			nm
Other fee income			4,605			5,246		4,635		4,704		4,928			(6.6)
Other non-interest income			7,812			7,367		7,619		7,787		7,241			7.9
Total non-interest income			68,832			65,854		64,549		63,985		63,388			8.6
Non-interest expense:
Salaries and other personnel expense			94,565			96,488		92,049		93,870		92,540			2.2
Net occupancy and equipment expense			26,541			26,172		26,370		26,956		26,425			0.4
Third-party processing expense			10,672			10,343		10,437		10,044		9,464			12.8
FDIC insurance and other regulatory fees			6,767			6,957		8,115		7,839		7,885			(14.2)
Professional fees			6,417			5,594		8,013		2,526		8,224			(22.0)
Advertising expense			2,865			3,443		8,102		7,177		6,281			(54.4)
Foreclosed real estate expense, net			4,351			9,496		6,502		9,074		4,063			7.1
Visa indemnification charges			354			375		310		1,979		356			(0.6)
Litigation contingency/settlement expenses(1)			4,400			-		463		12,349		-			nm
Restructuring charges, net			4			(107)		3,484		809		7,716			nm
Other operating expenses			20,869			20,147		21,038		21,126		19,251			8.4
Total non-interest expense			177,805			178,908		184,883		193,749		182,205			(2.4)
Income before income taxes			88,035			85,812		78,928		72,656		73,950			19.0
Income tax expense			32,242			31,849		25,757		25,868		27,078			19.1
Net income			55,793			53,963		53,171		46,788		46,872			19.0
Dividends on preferred stock			2,559			2,559		2,559		2,559		2,559			-
Net income available to common shareholders	$		53,234			51,404		50,612		44,229		44,313			20.1	%
Net income per common share, basic	$		0.40			0.38		0.37		0.32		0.32			25.6	%
Net income per common share, diluted			0.40			0.38		0.37		0.32		0.32			25.5
Cash dividends declared per common share			0.10			0.10		0.10		0.07		0.07			42.9
Return on average assets *			0.80	%		0.80		0.79		0.70		0.71			9	bps
Return on average common equity *			7.39			7.16		6.89		5.97		6.14			125
Weighted average common shares outstanding, basic			132,947			134,933		137,031		139,043		138,991		��	(4.3)	%
Weighted average common shares outstanding, diluted			133,625			135,744		137,831		139,726		139,567			(4.3)

nm - not meaningful

bps - basis points

* - ratios are annualized

(1) Amounts for other periods presented herein are not reported separately as amounts are not material. 

Synovus

BALANCE SHEET DATA		June 30, 2015	December 31, 2014	June 30, 2014
(Unaudited)
(In thousands, except share data)
ASSETS
Cash and cash equivalents	$	360,832	485,489	596,425
Interest bearing funds with Federal Reserve Bank		1,289,205	721,362	689,284
Interest earning deposits with banks		18,694	11,810	7,661
Federal funds sold and securities purchased under resale agreements		72,487	73,111	79,553
Trading account assets, at fair value		11,973	13,863	20,318
Mortgage loans held for sale, at fair value		98,202	63,328	75,957
Investment securities available for sale, at fair value		3,354,673	3,041,406	3,080,185
Loans, net of deferred fees and costs		21,494,869	21,097,699	20,455,763
Allowance for loan losses		(254,702)	(261,317)	(277,783)
Loans, net		21,240,167	20,836,382	20,177,980
Premises and equipment, net		445,579	455,235	461,610
Goodwill		24,431	24,431	24,431
Other real estate		66,449	85,472	101,533
Deferred tax asset, net		571,402	622,464	677,513
Other assets		651,776	616,878	634,840
Total assets	$	28,205,870	27,051,231	26,627,290
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Non-interest bearing deposits	$	6,421,815	6,228,472	5,875,301
Interest bearing deposits, excluding brokered deposits		14,775,216	13,660,830	13,668,746
Brokered deposits		1,452,150	1,642,398	1,449,420
Total deposits		22,649,181	21,531,700	20,993,467
Federal funds purchased and securities sold under repurchase agreements		188,285	126,916	127,840
Long-term debt		2,139,219	2,140,319	2,256,418
Other liabilities		223,028	211,026	196,514
Total liabilities		25,199,713	24,009,961	23,574,239
Shareholders’ equity:
Series C Preferred Stock - no par value, 5,200,000 shares outstanding at June 30, 2015, December 31, 2014, and June 30, 2014		125,980	125,980	125,980
Common stock - $1.00 par value. 132,257,577 shares outstanding at June 30, 2015, 136,122,843 shares outstanding at December 31, 2014, and 139,021,760 shares outstanding at June 30, 2014		140,425	139,950	139,835
Additional paid-in capital		2,981,434	2,960,825	2,976,811
Treasury stock, at cost - 8,167,677 shares at June 30, 2015, 3,827,579 shares at December 31, 2014, and 813,350 shares at June 30, 2014		(311,859)	(187,774)	(114,176)
Accumulated other comprehensive loss, net		(22,323)	(12,605)	(13,716)
Retained earnings (deficit)		92,500	14,894	(61,683)
Total shareholders’ equity		3,006,157	3,041,270	3,053,051
Total liabilities and shareholders’ equity	$	28,205,870	27,051,231	26,627,290

Synovus

AVERAGE BALANCES AND YIELDS/RATES (1)

(Unaudited)

(Dollars in thousands)

		2015						2014
		Second			First			Fourth			Third			Second
		Quarter			Quarter			Quarter			Quarter			Quarter
Interest Earning Assets
Taxable investment securities(2)	$		3,165,513			2,998,597			3,027,769			3,035,940			3,091,537
Yield			1.79	%		1.85			1.85			1.84			1.87
Tax-exempt investment securities(2) (4)	$		4,595			4,967			5,030			5,168			5,781
Yield (taxable equivalent)			6.15	%		6.21			6.19			6.21			6.23
Trading account assets	$		12,564			14,188			12,879			16,818			16,011
Yield			3.72	%		3.02			3.08			2.52			2.25
Commercial loans(3) (4)	$		17,297,130			17,176,641			16,956,294			16,603,287			16,673,930
Yield			4.01	%		4.06			4.09			4.17			4.19
Consumer loans(3)	$		3,986,151			3,929,188			3,895,397			3,814,160			3,695,010
Yield			4.37	%		4.45			4.42			4.44			4.51
Allowance for loan losses	$		(254,177	)		(257,167	)		(268,659	)		(274,698	)		(293,320	)
Loans, net(3)	$		21,029,104			20,848,662			20,583,032			20,142,749			20,075,620
Yield			4.14	%		4.19			4.22			4.29			4.32
Mortgage loans held for sale	$		90,419			64,507			60,892			70,766			59,678
Yield			3.39	%		3.92			3.84			3.96			4.13
Federal funds sold, due from Federal Reserve Bank, and other short-term investments	$		1,590,114			1,123,250			898,871			974,363			843,018
Yield			0.24	%		0.24			0.23			0.23			0.23
Federal Home Loan Bank and Federal Reserve Bank stock(5)	$		76,091			80,813			75,547			78,131			76,172
Yield			4.57	%		3.90			4.53			3.57			4.15
Total interest earning assets	$		25,968,400			25,134,984			24,664,020			24,323,935			24,167,817
Yield			3.61	%		3.73			3.78			3.81			3.86
Interest Bearing Liabilities
Interest bearing demand deposits	$		3,919,401			3,800,476			3,781,389			3,722,599			3,830,956
Rate			0.18	%		0.19			0.19			0.19			0.19
Money market accounts	$		6,466,610			6,210,704			6,009,897			6,044,138			6,033,523
Rate			0.35	%		0.32			0.29			0.29			0.31
Savings deposits	$		675,260			649,597			638,813			645,654			644,103
Rate			0.06	%		0.05			0.07			0.07			0.09
Time deposits under $100,000	$		1,351,299			1,324,513			1,315,905			1,335,848			1,364,322
Rate			0.68	%		0.61			0.57			0.56			0.57
Time deposits over $100,000	$		2,061,434			1,926,380			1,877,602			1,871,136			1,824,349
Rate			0.88	%		0.80			0.76			0.75			0.74
Brokered money market accounts	$		185,909			181,754			191,103			174,538			184,233
Rate			0.31	%		0.30			0.28			0.27			0.27
Brokered time deposits	$		1,370,022			1,413,068			1,411,252			1,320,082			1,216,934
Rate			0.67	%		0.63			0.58			0.52			0.51
Total interest bearing deposits	$		16,029,935			15,506,492			15,225,961			15,113,995			15,098,420
Rate			0.42	%		0.39			0.36			0.35			0.36
Federal funds purchased and securities sold under repurchase agreements	$		232,531			222,658			186,993			171,429			219,490
Rate			0.08	%		0.08			0.07			0.08			0.13
Long-term debt	$		2,173,595			2,207,215			2,084,636			2,142,705			2,099,578
Rate			2.39	%		2.41			2.55			2.54			2.58
Total interest bearing liabilities	$		18,436,061			17,936,365			17,497,590			17,428,129			17,417,488
Rate			0.65	%		0.63			0.62			0.62			0.62
Non-interest bearing demand deposits	$		6,436,167			6,108,558			6,110,047			5,824,592			5,765,287
Effective cost of funds			0.46	%		0.45			0.44			0.44			0.45
Net interest margin			3.15	%		3.28			3.34			3.37			3.41
Taxable equivalent adjustment	$		330			349			372			408			443

(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 consolidated balance sheet

Synovus

LOANS OUTSTANDING AND NON-PERFORMING LOANS COMPOSITION

(Unaudited)

(Dollars in thousands)

		June 30, 2015
				Loans as a %				Total				Non-performing Loans
				of Total Loans				Non-performing				as a % of Total
Loan Type		Total Loans		Outstanding				Loans				Nonperforming Loans
Multi-Family	$		1,286,747		6.0	%	$		222		$		0.1	%
Hotels			674,305		3.1				405				0.2
Office Buildings			1,348,234		6.3				728				0.4
Shopping Centers			917,678		4.3				57				0.0
Commercial Development			118,263		0.6				10,966				6.3
Warehouses			524,525		2.4				403				0.2
Other Investment Property			554,141		2.6				385				0.2
Total Investment Properties			5,423,893		25.2				13,166				7.6
1-4 Family Construction			147,572		0.7				90				0.1
1-4 Family Investment Mortgage			788,704		3.7				9,288				5.3
Residential Development			161,130		0.7				10,012				5.8
Total 1-4 Family Properties			1,097,406		5.1				19,390				11.2
Land Acquisition			554,501		2.5				23,396				13.5
Total Commercial Real Estate			7,075,800		32.9				55,952				32.3
Commercial, Financial, and Agricultural			6,259,553		29.0				43,733				25.1
Owner-Occupied			4,140,769		19.3				29,338				16.9
Total Commercial & Industrial			10,400,322		48.4				73,071				42.1
Home Equity Lines			1,683,651		7.8				17,802				10.3
Consumer Mortgages			1,793,752		8.3				24,855				14.3
Credit Cards			246,724		1.2				-				-
Other Retail Loans			323,741		1.5				1,958				1.1
Total Retail			4,047,868		18.8				44,615				25.7
Unearned Income			(29,121)		(0.1)				-				nm
Total	$		21,494,869		100.0	%	$		173,638				100.0	%
LOANS OUTSTANDING BY TYPE COMPARISON (Unaudited) (Dollars in thousands)
		Total Loans						2Q15 vs. 1Q15							2Q15 vs. 2Q14
Loan Type		June 30, 2015		March 31, 2015				% change (1)				June 30, 2014			% change
Multi-Family	$		1,286,747		1,227,286				19.4	%	$		1,109,340			16.0	%
Hotels			674,305		645,912				17.6				742,037			(9.1)
Office Buildings			1,348,234		1,287,048				19.1				995,614			35.4
Shopping Centers			917,678		876,667				18.8				838,231			9.5
Commercial Development			118,263		123,679				(17.6)				139,966			(15.5)
Warehouses			524,525		531,234				(5.1)				565,781			(7.3)
Other Investment Property			554,141		538,434				11.7				499,611			10.9
Total Investment Properties			5,423,893		5,230,260				14.8				4,890,580			10.9
1-4 Family Construction			147,572		148,248				(1.8)				129,991			13.5
1-4 Family Investment Mortgage			788,704		793,672				(2.5)				842,605			(6.4)
Residential Development			161,130		169,696				(20.2)				178,110			(9.5)
Total 1-4 Family Properties			1,097,406		1,111,616				(5.1)				1,150,706			(4.6)
Land Acquisition			554,501		569,649				(10.7)				609,285			(9.0)
Total Commercial Real Estate			7,075,800		6,911,525				9.5				6,650,571			6.4
Commercial, Financial, and Agricultural			6,259,553		6,175,460				5.5				6,059,794			3.3
Owner-Occupied			4,140,769		4,127,863				1.3				4,005,418			3.4
Total Commercial & Industrial			10,400,322		10,303,323				3.8				10,065,212			3.3
Home Equity Lines			1,683,651		1,672,038				2.8				1,664,520			1.1
Consumer Mortgages			1,793,752		1,702,388				21.5				1,561,111			14.9
Credit Cards			246,724		242,257				7.4				255,369			(3.4)
Other Retail Loans			323,741		304,050				26.0				287,935			12.4
Total Retail			4,047,868		3,920,733				13.0				3,768,935			7.4
Unearned Income			(29,121)		(29,368)				(3.4)				(28,955)			0.6
Total	$		21,494,869		21,106,213				7.4	%	$		20,455,763			5.1	%

(1) Percentage change is annualized.

Synovus

CREDIT QUALITY DATA

(Unaudited)

(Dollars in thousands)

		2015					2014						2nd Quarter
		Second         Quarter			First                 Quarter		Fourth                 Quarter		Third       Quarter		Second       Quarter		‘15 vs. ‘14      Change
Non-performing Loans	$		173,638			194,232		197,757		242,382		259,547		(33.1) %
Other Loans Held for Sale(1)			-			1,082		3,606		338		2,045		(100.0)
Other Real Estate			66,449			74,791		85,472		81,636		101,533		(34.6)
Non-performing Assets			240,087			270,105		286,835		324,356		363,125		(33.9)
Allowance for Loan Losses			254,702			253,371		261,317		269,376		277,783		(8.3)
Net Charge-Offs - Quarter			5,306			12,343		16,253		12,250		35,371		(85.0)
Net Charge-Offs / Average Loans - Quarter(2)			0.10	%		0.23		0.31		0.24		0.69
Non-performing Loans / Loans			0.81			0.92		0.94		1.18		1.27
Non-performing Assets / Loans, Other Loans Held for Sale & ORE			1.11			1.28		1.35		1.57		1.77
Allowance / Loans			1.18			1.20		1.24		1.31		1.36
Allowance / Non-performing Loans			146.69			130.45		132.14		111.14		107.03
Allowance / Non-performing Loans (3)			202.08			197.55		197.22		176.47		177.62
Past Due Loans over 90 days and Still Accruing	$		4,832			5,025		4,637		4,067		4,798		0.7  %
As a Percentage of Loans Outstanding			0.02	%		0.02		0.02		0.02		0.02
Total Past Due Loans and Still Accruing	$		50,860			57,443		51,251		72,712		60,428		(15.8)
As a Percentage of Loans Outstanding			0.24	%		0.27		0.24		0.35		0.30
Accruing Troubled Debt Restructurings (TDRs)	$		268,542			313,362		348,427		408,737		444,108		(39.5)

(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, 2015			December 31, 2014		June 30, 2014
Capital Rules in effect:		Basel III			Basel I		Basel I
Tier 1 Capital	$		2,615,827			2,543,625		2,500,491
Total Risk-Based Capital			2,971,517			2,987,406		2,958,274
Common Equity Tier 1 Ratio (transitional)			10.73	%		na		na
Common Equity Tier 1 Ratio (fully phased-in)			10.09			na		na
Tier 1 Common Equity Ratio			na			10.28		10.42
Tier 1 Capital Ratio			10.73			10.86		11.01
Total Risk-Based Capital Ratio			12.18			12.75		13.03
Tier 1 Leverage Ratio			9.48			9.67		9.69
Common Equity as a Percentage of Total Assets (2)			10.21			10.78		10.99
Tangible Common Equity as a Percentage of Tangible Assets (3)			10.13			10.69		10.91
Tangible Common Equity as a Percentage of Risk Weighted Assets (3)			11.71			12.33		12.78
Book Value Per Common Share (4)			21.78			21.42		21.05
Tangible Book Value Per Common Share (3)			21.59			21.23		20.87

(1) Current quarter regulatory capital information is preliminary. 2015 regulatory capital ratios determined under Basel III capital rules.

      2014 ratios were determined under Basel I capital rules.

(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.