Synovus Financial (SNV) 8-K Synovus Announces Earnings for the Third Quarter 2016

Exhibit 99.2

Synovus

INCOME STATEMENT DATA		Nine Months Ended
(Unaudited)
(Dollars in thousands, except per share data)		September 30,
		2016			2015		Change
Interest income	$		758,270			703,148		7.8	%
Interest expense			92,620			88,450		4.7
Net interest income			665,650			614,698		8.3
Provision for loan losses			21,741			13,990		55.4
Net interest income after provision for loan losses			643,909			600,708		7.2
Non-interest income:
Service charges on deposit accounts			60,772			59,621		1.9
Fiduciary and asset management fees			34,691			34,722		(0.1)
Brokerage revenue			20,019			20,978		(4.6)
Mortgage banking income			18,755			19,960		(6.0)
Bankcard fees			24,988			24,910		0.3
Investment securities gains, net			126			2,710 ��		(95.4)
Other fee income			15,255			15,371		(0.8)
Other non-interest income			24,582			23,474		4.7
Total non-interest income			199,188			201,746		(1.3)
Non-interest expense:
Salaries and other personnel expense			300,364			285,394		5.2
Net occupancy and equipment expense			81,480			79,650		2.3
Third-party processing expense			34,033			31,858		6.8
FDIC insurance and other regulatory fees			20,100			20,315		(1.1)
Professional fees			19,794			18,382		7.7
Advertising expense			15,358			11,797		30.2
Foreclosed real estate expense, net			9,998			18,350		(45.5)
Merger-related expense			550			-		nm
Visa indemnification charges			1,079			1,092		(1.2)
Loss on early extinguishment of debt			4,735			-		nm
Litigation settlement/contingency expense			2,511			4,400		(42.9)
Restructuring charges, net			8,225			(33)		nm
Other operating expenses			64,489			63,416		1.7
Total non-interest expense			562,716			534,621		5.3
Income before income taxes			280,381			267,833		4.7
Income tax expense			102,148			100,149		2.0
Net income			178,233			167,684		6.3
Dividends on preferred stock			7,678			7,678		-
Net income available to common shareholders	$		170,555			160,006		6.6	%
Net income per common share, basic	$		1.36			1.20		13.4	%
Net income per common share, diluted			1.36			1.20		13.5
Cash dividends declared per common share			0.36			0.30		20.0
Return on average assets			0.81	%		0.80		1	bp
Return on average common equity			8.07			7.40		67
Weighted average common shares outstanding, basic			125,076			133,120		(6.0)	%
Weighted average common shares outstanding, diluted			125,712			133,876		(6.1)

nm - not meaningful

bps - basis points

Synovus

INCOME STATEMENT DATA

(Unaudited)

(In thousands, except per share data)		2016								2015				3rd Quarter
		Third Quarter			Second Quarter			First Quarter		Fourth Quarter		Third Quarter		‘16 vs. ‘15  Change
Interest income	$		256,554			252,393			249,323		242,814		238,093		7.8	%
Interest expense			30,547			30,944			31,130		30,194		30,303		0.8
Net interest income			226,007			221,449			218,193		212,620		207,790		8.8
Provision for loan losses			5,671			6,693			9,377		5,021		2,956		91.8
Net interest income after provision for loan losses			220,336			214,756			208,816		207,599		204,834		7.6
Non-interest income:
Service charges on deposit accounts			20,822			20,240			19,710		20,522		20,692		0.6
Fiduciary and asset management fees			11,837			11,580			11,274		11,206		11,308		4.7
Brokerage revenue			6,199			7,338			6,483		6,877		6,946		(10.8)
Mortgage banking income			7,329			5,941			5,484		4,136		5,965		22.9
Bankcard fees			8,269			8,346			8,372		8,262		8,334		(0.8)
Investment securities gains, net			59			-			67		58		-		nm
Other fee income			5,171			5,280			4,804		5,798		5,521		(6.3)
Other non-interest income			8,469			9,161			6,953		9,316		8,293		2.1
Total non-interest income			68,155			67,886			63,147		66,175		67,059		1.6
Non-interest expense:
Salaries and other personnel expense			101,945			97,061			101,358		95,524		94,341		8.1
Net occupancy and equipment expense			28,120			26,783			26,577		27,816		26,937		4.4
Third-party processing expense			11,219			11,698			11,116		10,993		10,844		3.5
FDIC insurance and other regulatory fees			6,756			6,625			6,719		6,776		6,591		2.5
Professional fees			6,486			6,938			6,369		8,265		6,371		1.8
Advertising expense			5,597			7,351			2,410		3,680		5,488		2.0
Foreclosed real estate expense, net			2,725			4,588			2,684		4,454		4,503		(39.5)
Merger-related expense			550			-			-		-		-		nm
Visa indemnification charges			360			360			360		371		363		(0.8)
Loss on early extinguishment of debt			-			-			4,735		1,533		-		-
Litigation contingency/settlement (recovery) expense			(189)			-			2,700		710		-		nm
Restructuring charges, net			1,243			5,841			1,140		69		69		nm
Other operating expenses			21,059			21,366			22,065		22,842		22,400		(6.0)
Total non-interest expense			185,871			188,611			188,233		183,033		177,907		4.5
Income before income taxes			102,620			94,031			83,730		90,741		93,986		9.2
Income tax expense			37,375			33,574			31,199		32,343		36,058		3.7
Net income			65,245			60,457			52,531		58,398		57,928		12.6
Dividends on preferred stock			2,559			2,559			2,559		2,559		2,559		-
Net income available to common shareholders	$		62,686			57,898			49,972		55,839		55,369		13.2	%
Net income per common share, basic	$		0.51			0.46			0.39		0.43		0.42		21.1	%
Net income per common share, diluted			0.51			0.46			0.39		0.43		0.42		21.2
Cash dividends declared per common share			0.12			0.12			0.12		0.12		0.10		20.0
Return on average assets *			0.88	%		0.83	%		0.73		0.81		0.81		7	bps
Return on average common equity *			8.89			8.26			7.06		7.67		7.64		125
Weighted average common shares outstanding, basic			122,924			125,100			127,227		130,354		131,516		(6.5)	%
Weighted average common shares outstanding, diluted			123,604			125,699			127,857		131,197		132,297		(6.6)

nm - not meaningful

bps - basis points

* - ratios are annualized

Synovus

BALANCE SHEET DATA		September 30, 2016		December 31, 2015		September 30, 2015
(Unaudited)
(In thousands, except share data)
ASSETS
Cash and cash equivalents	$		367,342		367,092		329,396
Interest bearing funds with Federal Reserve Bank			985,776		829,887		837,641
Interest earning deposits with banks			18,375		17,387		21,170
Federal funds sold and securities purchased under resale agreements			71,753		69,819		69,732
Trading account assets, at fair value			7,309		5,097		5,844
Mortgage loans held for sale, at fair value			95,769		59,275		73,623
Investment securities available for sale, at fair value			3,603,153		3,587,818		3,487,332
Loans, net of deferred fees and costs			23,262,887		22,429,565		21,864,309
Allowance for loan losses			(253,817)		(252,496)		(250,900)
Loans, net			23,009,070		22,177,069		21,613,409
Premises and equipment, net			418,091		445,155		449,078
Goodwill			24,431		24,431		24,431
Other real estate			28,438		47,030		64,346
Deferred tax asset, net			395,795		511,948		526,492
Other assets			701,794		650,645		664,641
Total assets	$		29,727,096		28,792,653		28,167,135
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Non-interest bearing deposits	$		7,059,059		6,732,970		6,570,227
Interest bearing deposits, excluding brokered deposits			15,817,596		15,434,171		14,961,387
Brokered deposits			1,315,348		1,075,520		1,245,798
Total deposits			24,192,003		23,242,661		22,777,412
Federal funds purchased and securities sold under repurchase agreements			195,025		177,025		135,475
Long-term debt			2,160,985		2,186,893		2,038,028
Other liabilities			272,424		185,878		199,104
Total liabilities			26,820,437		25,792,457		25,150,019
Shareholders’ equity:
Series C Preferred Stock - no par value, 5,200,000 shares outstanding at September 30, 2016, December 31, 2015, and September 30, 2015			125,980		125,980		125,980
Common stock - $1.00 par value. 121,453,772 shares outstanding at September 30, 2016, 129,547,032 shares outstanding at December 31, 2015 and 130,632,731 shares outstanding at September 30, 2015			141,066		140,592		140,526
Additional paid-in capital			2,987,760		2,989,981		2,986,333
Treasury stock, at cost - 19,612,435 shares at September 30, 2016, 11,045,377 shares at December 31, 2015, and 9,892,877 shares at September 30, 2015			(654,014)		(401,511)		(364,428)
Accumulated other comprehensive gain (loss)			5,165		(29,819)		(6,092)
Retained earnings			300,702		174,973		134,797
Total shareholders’ equity			2,906,659		3,000,196		3,017,116
Total liabilities and shareholders’ equity	$		29,727,096		28,792,653		28,167,135

Synovus

AVERAGE BALANCES AND YIELDS/RATES (1)
(Unaudited)
(Dollars in thousands)
		2016									2015
		Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Interest Earning Assets
Taxable investment securities(2)	$		3,544,933			3,529,030			3,537,131			3,481,184			3,380,543
Yield			1.83	%		1.89			1.91			1.85			1.76
Tax-exempt investment securities (2) (4)	$		2,943			3,491			4,091			4,352			4,509
Yield (taxable equivalent)			5.96	%		6.08			6.37			6.16			6.21
Trading account assets	$		5,493			3,803			5,216			8,067			7,278
Yield			0.93	%		1.27			1.65			2.24			1.84
Commercial loans(3) (4)	$		18,419,484			18,433,638			18,253,169			17,884,661			17,522,735
Yield			4.03	%		4.04			4.03			3.97			3.99
Consumer loans(3)	$		4,720,082			4,497,147			4,334,817			4,233,061			4,105,639
Yield			4.30	%		4.32			4.37			4.27			4.31
Allowance for loan losses	$		(255,675)			(251,101	)		(258,097	)		(252,049	)		(256,102	)
Loans, net(3)	$		22,883,891			22,679,684			22,329,889			21,865,673			21,372,272
Yield			4.14	%		4.15			4.15			4.08			4.10
Mortgage loans held for sale	$		87,524			72,477			63,339			50,668			69,438
Yield			3.32	%		3.59			3.72			3.84			3.82
Federal funds sold, due from Federal Reserve Bank, and othershort-term investments	$		998,565			907,615			885,939			1,081,604			1,380,686
Yield			0.48	%		0.47			0.47			0.27			0.24
Federal Home Loan Bank and Federal Reserve Bank stock(5)	$		70,570			77,571			80,679			66,790			71,852
Yield			4.99	%		5.15			3.82			5.08			4.71
Total interest earning assets	$		27,593,919			27,273,670			26,906,284			26,558,338			26,286,578
Yield			3.71	%		3.73			3.73			3.63			3.60
Interest Bearing Liabilities
Interest bearing demand deposits	$		4,274,117			4,233,310			4,198,738			4,117,116			3,955,803
Rate			0.16	%		0.18			0.17			0.17			0.18
Money market accounts	$		7,227,030			7,082,759			7,095,778			7,062,517			6,893,563
Rate			0.29	%		0.31			0.32			0.35			0.36
Savings deposits	$		797,961			746,225			722,172			692,536			685,813
Rate			0.07	%		0.06			0.07			0.06			0.06
Time deposits under $100,000	$		1,248,294			1,262,280			1,279,811			1,307,601			1,338,994
Rate			0.64	%		0.64			0.65			0.65			0.66
Time deposits over $100,000	$		2,030,242			2,016,116			2,006,302			2,033,193			2,086,851
Rate			0.88	%		0.89			0.89			0.88			0.88
Non maturing brokered deposits	$		634,596			451,398			315,006			297,925			221,817
Rate			0.29	%		0.39			0.48			0.31			0.31
Brokered time deposits	$		775,143			885,603			780,232			887,168			1,135,346
Rate			0.88	%		0.85			0.83			0.76			0.71
Total interest bearing deposits	$		16,987,383			16,677,691			16,398,039			16,398,056			16,318,187
Rate			0.37	%		0.39			0.39			0.40			0.42
Federal funds purchased and securities sold under repurchase agreements	$		247,378			221,276			177,921			158,810			207,894
Rate			0.09	%		0.09			0.10			0.08			0.09
Long-term debt	$		2,114,193			2,279,043			2,361,973			2,007,924			2,072,455
Rate			2.71	%		2.55			2.55			2.63			2.46
Total interest bearing liabilities	$		19,348,954			19,178,010			18,937,933			18,564,790			18,598,536
Rate			0.63	%		0.65			0.66			0.65			0.65
Non-interest bearing demand deposits	$		7,042,908			6,930,336			6,812,223			6,846,200			6,541,832
Effective cost of funds			0.44	%		0.46			0.46			0.45			0.46
Net interest margin			3.27	%		3.27			3.27			3.18			3.14
Taxable equivalent adjustment	$		330			329			305			311			315

(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

NON-PERFORMING LOANS COMPOSITION

(Unaudited)

(Dollars in thousands)

Loan Type		Total Non-performing Loans     September 30, 2016		Total     Non-performing     Loans June 30, 2016		3Q16 vs. 2Q16     % change(1)				Total Non-performing Loans     September 30, 2015		3Q16 vs. 3Q15     % change
Multi-Family	$		3,912		4,070		(15.4)	%	$		221		nm
Hotels			346		5,052		(370.6)				392		(11.7)	%
Office Buildings			931		2,563		(253.3)				355		162.3
Shopping Centers			354		358		(4.4)				-		nm
Warehouses			1,108		1,128		(7.1)				397		179.1
Other Investment Property			2,233		978		nm				9,217		(75.8)
Total Investment Properties			8,884		14,149		(148.0)				10,582		(16.0)
1-4 Family Construction			304		304		0.0				-		nm
1-4 Family Investment Mortgage			7,658		7,994		(16.7)				7,287		5.1
Residential Development			9,190		9,571		(15.8)				9,707		(5.3)
Total 1-4 Family Properties			17,152		17,869		(16.0)				16,994		0.9
Land Acquisition			6,672		7,610		(49.0)				19,010		(64.9)
Total Commercial Real Estate			32,708		39,628		(69.5)				46,586		(29.8)
Commercial, Financial, and Agricultural			49,874		55,821		(42.4)				50,656		(1.5)
Owner-Occupied			21,443		17,118		100.5				18,148		18.2
Total Commercial & Industrial			71,317		72,939		(8.8)				68,804		3.7
Home Equity Lines			19,815		16,912		68.3				16,263		21.8
Consumer Mortgages			21,284		21,895		(11.1)				24,154		(11.9)
Credit Cards			-		-		-				-		-
Other Retail Loans			3,031		2,698		49.1				1,833		65.4
Total Retail			44,130		41,505		25.2				42,250		4.4
Total	$		148,155		154,072		(15.3)	%	$		157,640		(6.0)	%
(1) Percentage change is annualized.
LOANS OUTSTANDING BY TYPE COMPARISON (Unaudited) (Dollars in thousands)
Loan Type		Total Loans September 30, 2016		Total Loans June 30, 2016		3Q16 vs. 2Q16 % change(1)				Total Loans September 30, 2015		3Q16 vs. 3Q15 % change
Multi-Family	$		1,553,275		1,528,192		6.5	%	$		1,345,687		15.4	%
Hotels			774,873		746,397		15.2				684,105		13.3
Office Buildings			1,575,190		1,559,631		4.0				1,388,965		13.4
Shopping Centers			917,284		926,147		(3.8)				944,690		(2.9)
Warehouses			522,170		535,889		(10.2)				545,346		(4.2)
Other Investment Property			626,674		624,405		1.4				648,783		(3.4)
Total Investment Properties			5,969,466		5,920,661		3.3				5,557,576		7.4
1-4 Family Construction			193,791		208,871		(28.7)				176,442		9.8
1-4 Family Investment Mortgage			727,897		758,463		(16.0)				777,196		(6.3)
Residential Development			149,366		160,446		(27.5)				158,120		(5.5)
Total 1-4 Family Properties			1,071,054		1,127,780		(20.0)				1,111,758		(3.7)
Land Acquisition			425,058		459,254		(29.6)				538,127		(21.0)
Total Commercial Real Estate			7,465,578		7,507,695		(2.2)				7,207,461		3.6
Commercial, Financial, and Agricultural			6,544,629		6,596,835		(3.1)				6,260,563		4.5
Owner-Occupied			4,471,365		4,358,595		10.3				4,265,409		4.8
Total Commercial & Industrial			11,015,994		10,955,430		2.2				10,525,972		4.7
Home Equity Lines			1,638,844		1,657,109		(4.4)				1,684,046		(2.7)
Consumer Mortgages			2,243,154		2,132,114		20.7				1,888,456		18.8
Credit Cards			232,309		236,034		(6.3)				241,315		(3.7)
Other Retail Loans			693,204		600,153		61.7				345,426		100.7
Total Retail			4,807,511		4,625,410		15.7				4,159,243		15.6
Unearned Income			(26,196)		(27,627)		(20.6)				(28,367)		(7.7)
Total	$		23,262,887		23,060,908		3.5	%	$		21,864,309		6.4	%

(1) Percentage change is annualized.

Synovus

CREDIT QUALITY DATA
(Unaudited)
(Dollars in thousands)		2016							2015				3rd Quarter
		Third     Quarter			Second Quarter		First     Quarter		Fourth Quarter		Third     Quarter		‘16 vs. ‘15 Change
Non-performing Loans	$		148,155			154,072		178,167		168,370		157,640		(6.0)  %
Impaired Loans Held for Sale (1)			2,473			-		-				-		nm
Other Real Estate			28,438			33,289		38,462		47,030		64,346		(55.8)
Non-performing Assets			179,066			187,361		216,629		215,400		221,986		(19.3)
Allowance for loan losses			253,817			255,076		254,516		252,496		250,900		1.2
Net Charge-Offs - Quarter			6,930			6,133		7,357		3,425		6,758		2.5
Net Charge-Offs / Average Loans - Quarter (2)			0.12	%		0.11		0.13		0.06		0.12
Non-performing Loans / Loans			0.64			0.67		0.78		0.75		0.72
Non-performing Assets / Loans, Other Loans Held for Sale & ORE			0.77			0.81		0.95		0.96		1.01
Allowance / Loans			1.09			1.11		1.12		1.13		1.15
Allowance / Non-performing Loans			171.32			165.56		142.85		149.96		159.16
Allowance / Non-performing Loans (3)			198.94			195.25		173.64		189.47		205.90
Past Due Loans over 90 days and Still Accruing	$		5,358			5,964		3,214		2,621		2,998		78.7
As a Percentage of Loans Outstanding			0.02	%		0.03		0.01		0.01		0.01
Total Past Due Loans and Still Accruing	$		61,781			55,716		63,852		47,912		39,350		57.0
As a Percentage of Loans Outstanding			0.27	%		0.24		0.28		0.21		0.18
Accruing Troubled Debt Restructurings (TDRs)	$		201,896			205,165		209,159		223,873		240,370		(16.0)

(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, 2016			June 30, 2016		September 30, 2015
Tier 1 Capital	$		2,620,379			2,627,572		2,637,462
Total Risk-Based Capital			3,136,814			3,146,897		2,990,099
Common Equity Tier 1 Ratio (transitional)			9.97	%		10.01		10.60
Common Equity Tier 1 Ratio (fullyphased-in)			9.49			9.49		9.98
Tier 1 Capital Ratio			10.07			10.06		10.60
Total Risk-Based Capital Ratio			12.05			12.05		12.02
Tier 1 Leverage Ratio			8.98			9.10		9.45
Common Equity as a Percentage of Total Assets (2)			9.35			9.59		10.26
Tangible Common Equity as a Percentage of Tangible Assets (3)			9.28			9.52		10.18
Tangible Common Equity as a Percentage of Risk Weighted Assets (3)			10.58			10.72		11.52
Book Value Per Common Share (4)			22.89			22.78		22.13
Tangible Book Value Per Common Share (3)			22.69			22.58		21.91

(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.