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

Exhibit 99.2

Synovus

INCOME STATEMENT DATA		Twelve Months Ended
(Unaudited)
(Dollars in thousands, except per share data)		December 31,
		2016			2015		Change
Interest income	$		1,022,803			945,962		8.1	%
Interest expense			123,623			118,644		4.2
Net interest income			899,180			827,318		8.7
Provision for loan losses			28,000			19,010		47.3
Net interest income after provision for loan losses			871,180			808,308		7.8
Non-interest income:
Service charges on deposit accounts			81,425			80,142		1.6
Fiduciary and asset management fees			46,594			45,928		1.5
Brokerage revenue			27,028			27,855		(3.0)
Mortgage banking income			24,259			24,096		0.7
Bankcard fees			33,318			33,172		0.4
Investment securities gains, net			6,011			2,769		117.1
Other fee income			20,220			21,170		(4.5)
Othernon-interest income			34,339			32,788		4.7
Totalnon-interest income			273,194			267,920		2.0
Non-interest expense:
Salaries and other personnel expense			402,026			380,918		5.5
Net occupancy and equipment expense			109,347			107,466		1.8
Third-party processing expense			46,320			42,851		8.1
FDIC insurance and other regulatory fees			26,714			27,091		(1.4)
Professional fees			26,698			26,646		0.2
Advertising expense			20,264			15,477		30.9
Foreclosed real estate expense, net			12,838			22,803		(43.7)
Merger-related expense			1,636			-		nm
Amortization of intangibles			521			503		3.6
Fair value adjustment to Visa derivative			5,795			1,464		295.8
Loss on early extinguishment of debt			4,735			1,533		208.9
Litigation settlement/contingency expense			2,511			5,110		(50.9)
Restructuring charges, net			8,267			36		nm
Other operating expenses			88,251			85,757		2.9
Totalnon-interest expense			755,923			717,655		5.3
Income before income taxes			388,451			358,573		8.3
Income tax expense			141,667			132,491		6.9
Net income			246,784			226,082		9.2
Dividends on preferred stock			10,238			10,238		-
Net income available to common shareholders	$		236,546			215,844		9.6	%
Net income per common share, basic	$		1.90			1.63		16.7	%
Net income per common share, diluted			1.89			1.62		16.7
Cash dividends declared per common share			0.48			0.42		14.3
Return on average assets			0.84	%		0.80		4	bp
Return on average common equity			8.41			7.46		95
Weighted average common shares outstanding, basic			124,389			132,423		(6.1)	%
Weighted average common shares outstanding, diluted			125,078			133,201		(6.1)

nm - not meaningful

bps - basis points

Synovus

INCOME STATEMENT DATA

(Unaudited)
(In thousands, except per share data)	2016									2015		4th Quarter
	Fourth Quarter			Third Quarter		Second Quarter		First Quarter		Fourth Quarter		‘16 vs. ‘15     Change
Interest income	$	264,534			256,554		252,393		249,323		242,814		8.9	%
Interest expense		31,004			30,547		30,944		31,130		30,194		2.7
Net interest income		233,530			226,007		221,449		218,193		212,620		9.8
Provision for loan losses		6,259			5,671		6,693		9,377		5,021		24.7
Net interest income after provision for loan losses		227,271			220,336		214,756		208,816		207,599		9.5
Non-interest income:
Service charges on deposit accounts		20,653			20,822		20,240		19,710		20,522		0.6
Fiduciary and asset management fees		11,903			11,837		11,580		11,274		11,206		6.2
Brokerage revenue		7,009			6,199		7,338		6,483		6,877		1.9
Mortgage banking income		5,504			7,329		5,941		5,484		4,136		33.1
Bankcard fees		8,330			8,269		8,346		8,372		8,262		0.8
Investment securities gains, net		5,885			59		-		67		58		nm
Other fee income		4,965			5,171		5,280		4,804		5,798		(14.4)
Othernon-interest income		9,757			8,469		9,161		6,953		9,316		4.7
Totalnon-interest income		74,006			68,155		67,886		63,147		66,175		11.8
Non-interest expense:
Salaries and other personnel expense		101,662			101,945		97,061		101,358		95,524		6.4
Net occupancy and equipment expense		27,867			28,120		26,783		26,577		27,816		0.2
Third-party processing expense		12,287			11,219		11,698		11,116		10,993		11.8
FDIC insurance and other regulatory fees		6,614			6,756		6,625		6,719		6,776		(2.4)
Professional fees		6,904			6,486		6,938		6,369		8,265		(16.5)
Advertising expense		4,905			5,597		7,351		2,410		3,680		33.3
Foreclosed real estate expense, net		2,840			2,725		4,588		2,684		4,454		(36.2)
Merger-related expense		1,086			550		-		-		-		nm
Amortization of intangibles		400			-		-		121		123		nm
Fair value adjustment to Visa derivative		4,716			360		360		360		371		nm
Loss on early extinguishment of debt		-			-		-		4,735		1,533		-
Litigation contingency/settlement (recovery) expense		-			(189)		-		2,700		710		(100.0)
Restructuring charges, net		42			1,243		5,841		1,140		69		(39.1)
Other operating expenses		23,886			21,059		21,366		21,944		22,720		5.1
Totalnon-interest expense		193,209			185,871		188,611		188,233		183,034		5.6
Income before income taxes		108,068			102,620		94,031		83,730		90,741		19.1
Income tax expense		39,519			37,375		33,574		31,199		32,343		22.2
Net income		68,549			65,245		60,457		52,531		58,398		17.4
Dividends on preferred stock		2,559			2,559		2,559		2,559		2,559		-
Net income available to common shareholders		$       65,990			62,686		57,898		49,972		55,839		18.2	%
Net income per common share, basic		$           0.54			0.51		0.46		0.39		0.43		25.9	%
Net income per common share, diluted		0.54			0.51		0.46		0.39		0.43		25.9
Cash dividends declared per common share		0.12			0.12		0.12		0.12		0.12		0.0
Return on average assets *		0.90	%		0.88		0.83		0.73		0.81		9	bps
Return on average common equity *		9.42			8.89		8.26		7.06		7.67		175
Weighted average common shares outstanding, basic		122,341			122,924		125,100		127,227		130,354		(6.1)  %
Weighted average common shares outstanding, diluted		123,187			123,604		125,699		127,857		131,197		(6.1)

nm - not meaningful    

bps - basis points    

* - ratios are annualized    

Synovus

BALANCE SHEET DATA		December 31, 2016		September 30, 2016		December 31, 2015
(Unaudited)
(In thousands, except share data)
ASSETS
Cash and cash equivalents	$		395,175		367,342		367,092
Interest bearing funds with Federal Reserve Bank			527,090		985,776		829,887
Interest earning deposits with banks			18,720		18,375		17,387
Federal funds sold and securities purchased under resale agreements			58,060		71,753		69,819
Trading account assets, at fair value			9,314		7,309		5,097
Mortgage loans held for sale, at fair value			51,545		95,769		59,275
Investment securities available for sale, at fair value			3,718,195		3,603,153		3,587,818
Loans, net of deferred fees and costs			23,856,391		23,262,887		22,429,565
Allowance for loan losses			(251,758)		(253,817)		(252,496)
Loans, net			23,604,633		23,009,070		22,177,069
Premises and equipment, net			417,485		418,091		445,155
Goodwill			59,678		24,431		24,431
Intangible assets, net			13,223		225		471
Other real estate			22,308		28,438		47,030
Deferred tax asset, net			395,356		395,795		511,948
Other assets			813,220		701,569		650,174
Total assets	$		30,104,002		29,727,096		28,792,653
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Non-interest bearing deposits	$		7,085,804		7,059,059		6,732,970
Interest bearing deposits, excluding brokered deposits			16,183,273		15,817,596		15,434,171
Brokered deposits			1,378,983		1,315,348		1,075,520
Total deposits			24,648,060		24,192,003		23,242,661
Federal funds purchased and securities sold under repurchase agreements			159,699		195,025		177,025
Long-term debt			2,160,881		2,160,985		2,186,893
Other liabilities			207,438		272,424		185,878
Total liabilities			27,176,078		26,820,437		25,792,457
Shareholders’ equity:
Series C Preferred Stock - no par value, 5,200,000 shares outstanding at December 31, 2016, September 30, 2016, and December 31, 2015			125,980		125,980		125,980
Common stock - $1.00 par value. 122,266,106 shares outstanding at December 31, 2016, 121,453,772 shares outstanding at September 30, 2016, and 129,547,032 shares outstanding at December 31, 2015			142,026		141,066		140,592
Additionalpaid-in capital			3,028,405		2,987,760		2,989,981
Treasury stock, at cost - 19,759,614 shares at December 31, 2016, 19,612,435 shares at September 30, 2016, and 11,045,377 shares at December 31, 2015			(664,595)		(654,014)		(401,511)
Accumulated other comprehensive (loss) gain			(55,659)		5,165		(29,819)
Retained earnings			351,767		300,702		174,973
Total shareholders’ equity			2,927,924		2,906,659		3,000,196
Total liabilities and shareholders’ equity	$		30,104,002		29,727,096		28,792,653

Synovus    

AVERAGE BALANCES AND YIELDS/RATES (1)
(Unaudited)
(Dollars in thousands)
					2016									2015
		Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter
Interest Earning Assets
Taxable investment securities(2)	$		3,643,510			3,544,933			3,529,030			3,537,131			3,481,184
Yield			1.92	%		1.83			1.89			1.91			1.85
Tax-exempt investment securities(2) (4)	$		2,824			2,943			3,491			4,091			4,352
Yield (taxable equivalent)			5.82	%		5.96			6.08			6.37			6.16
Trading account assets	$		6,799			5,493			3,803			5,216			8,067
Yield			2.63	%		0.93			1.27			1.65			2.24
Commercial loans(3) (4)	$		18,812,659			18,419,484			18,433,638			18,253,169			17,884,661
Yield			4.05	%		4.03			4.04			4.03			3.97
Consumer loans(3)	$		4,911,149			4,720,082			4,497,147			4,334,817			4,233,061
Yield			4.27	%		4.30			4.32			4.37			4.27
Allowance for loan losses	$		(253,713	)		(255,675	)		(251,101	)		(258,097	)		(252,049	)
Loans, net(3)	$		23,470,095			22,883,891			22,679,684			22,329,889			21,865,673
Yield			4.14	%		4.14			4.15			4.15			4.08
Mortgage loans held for sale	$		77,652			87,524			72,477			63,339			50,668
Yield			3.51	%		3.32			3.59			3.72			3.84
Federal funds sold, due from Federal Reserve Bank, and other short-term investments	$		982,355			998,565			907,614			885,938			1,081,604
Yield			0.49	%		0.48			0.47			0.47			0.27
Federal Home Loan Bank and Federal Reserve Bank stock(5)	$		121,079			70,570			77,571			80,679			66,790
Yield			3.75	%		4.99			5.15			3.82			5.08
Total interest earning assets	$		28,304,314			27,593,919			27,273,670			26,906,283			26,558,338
Yield			3.73	%		3.71			3.73			3.73			3.63
Interest Bearing Liabilities
Interest bearing demand deposits	$		4,488,135			4,274,117			4,233,310			4,198,738			4,117,116
Rate			0.16	%		0.16			0.18			0.17			0.17
Money market accounts	$		7,359,067			7,227,030			7,082,759			7,095,778			7,062,517
Rate			0.29	%		0.29			0.31			0.32			0.35
Savings deposits	$		908,725			797,961			746,225			722,172			692,536
Rate			0.12	%		0.07			0.06			0.07			0.06
Time deposits under $100,000	$		1,229,809			1,248,294			1,262,280			1,279,811			1,307,601
Rate			0.64	%		0.64			0.64			0.65			0.65
Time deposits over $100,000	$		2,014,564			2,030,242			2,016,116			2,006,302			2,033,193
Rate			0.90	%		0.88			0.89			0.89			0.88
Non maturing brokered deposits	$		638,779			634,596			451,398			315,006			297,925
Rate			0.31	%		0.29			0.39			0.48			0.31
Brokered time deposits	$		742,153			775,143			885,603			780,233			887,168
Rate			0.90	%		0.88			0.85			0.83			0.76
Total interest bearing deposits	$		17,381,232			16,987,383			16,677,691			16,398,040			16,398,056
Rate			0.37	%		0.37			0.39			0.39			0.40
Federal funds purchased and securities sold under repurchase agreements	$		219,429			247,378			221,276			177,921			158,810
Rate			0.08	%		0.09			0.09			0.10			0.08
Long-term debt	$		2,190,716			2,114,193			2,279,043			2,361,973			2,007,924
Rate			2.65	%		2.71			2.55			2.55			2.63
Total interest bearing liabilities	$		19,791,377			19,348,954			19,178,010			18,937,934			18,564,790
Rate			0.62	%		0.63			0.65			0.66			0.65
Non-interest bearing demand deposits	$		7,280,033			7,042,908			6,930,336			6,812,223			6,846,200
Effective cost of funds			0.44	%		0.44			0.46			0.46			0.45
Net interest margin			3.29	%		3.27			3.27			3.27			3.18
Taxable equivalent adjustment	$		322			330			329			305			311

(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 ontax-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)    

		Total		Total						Total
		Non-performing		Non-performing		4Q16 vs. 3Q16				Non-performing		4Q16 vs. 4Q15
Loan Type		Loans		Loans		% change (1)				Loans		% change
		December 31, 2016		September 30, 2016						December 31, 2015
Multi-Family	$		1,853		3,912		(209.4)	%	$		223		nm
Hotels			335		346		(12.6)				381		(12.1)	%
Office Buildings			1,380		931		191.9				1,170		17.9
Shopping Centers			354		354		0.0				907		(61.0)
Warehouses			592		1,108		(185.3)				208		184.6
Other Investment Property			922		2,233		(233.6)				20,151		(95.4)
Total Investment Properties			5,436		8,884		(154.4)				23,040		(76.4)
1-4 Family Construction			305		304		1.3				-		nm
1-4 Family Investment Mortgage			8,809		7,658		59.8				7,708		14.3
Residential Development			8,994		9,190		(8.5)				9,130		(1.5)
Total1-4 Family Properties			18,108		17,152		22.2				16,838		7.5
Land Acquisition			7,071		6,672		23.8				17,768		(60.2)
Total Commercial Real Estate			30,615		32,708		(25.5)				57,646		(46.9)
Commercial, Financial, and Agricultural			59,074		49,874		73.4				49,137		20.2
Owner-Occupied			16,503		21,443		(91.7)				20,294		(18.7)
Total Commercial & Industrial			75,577		71,317		23.8				69,431		8.9
Home Equity Lines			21,551		19,815		34.9				16,480		30.8
Consumer Mortgages			22,681		21,284		26.1				22,248		1.9
Credit Cards			-		-		-				-		-
Other Retail Loans			2,954		3,031		(10.1)				2,565		15.2
Total Retail			47,186		44,130		27.5				41,293		14.3
Total	$		153,378		148,155		14.0	%	$		168,370		(8.9)	%

(1)  Percentage change is annualized.    

LOANS OUTSTANDING BY TYPE COMPARISON    

(Unaudited)    

(Dollars in thousands)    

		Total Loans		Total Loans		4Q16 vs. 3Q16				Total Loans		4Q16 vs. 4Q15
Loan Type		December 31, 2016		September 30, 2016		% change(1)				December 31, 2015		% change
Multi-Family	$		1,568,234		1,553,275		3.8	%	$		1,391,453		12.7	%
Hotels			748,951		774,873		(13.3)				703,825		6.4
Office Buildings			1,568,328		1,575,190		(1.7)				1,495,247		4.9
Shopping Centers			964,325		917,284		20.4				956,394		0.8
Warehouses			486,300		522,170		(27.3)				563,217		(13.7)
Other Investment Property			596,481		626,674		(19.2)				641,495		(7.0)
Total Investment Properties			5,932,619		5,969,466		(2.5)				5,751,631		3.1
1-4 Family Construction			190,477		193,791		(6.8)				187,545		1.6
1-4 Family Investment Mortgage			696,830		727,897		(17.0)				786,797		(11.4)
Residential Development			136,514		149,366		(34.2)				154,814		(11.8)
Total1-4 Family Properties			1,023,821		1,071,054		(17.5)				1,129,156		(9.3)
Land Acquisition			409,534		425,058		(14.5)				513,981		(20.3)
Total Commercial Real Estate			7,365,974		7,465,578		(5.3)				7,394,768		(0.4)
Commercial, Financial, and Agricultural			6,915,927		6,544,629		22.6				6,453,180		7.2
Owner-Occupied			4,636,016		4,471,365		14.6				4,318,950		7.3
Total Commercial & Industrial			11,551,943		11,015,994		19.4				10,772,130		7.2
Home Equity Lines			1,617,265		1,638,844		(5.2)				1,689,914		(4.3)
Consumer Mortgages			2,296,604		2,243,154		9.5				1,938,683		18.5
Credit Cards			232,413		232,309		0.2				240,851		(3.5)
Other Retail Loans			818,183		693,204		71.7				423,318		93.3
Total Retail			4,964,465		4,807,511		13.0				4,292,766		15.6
Unearned Income			(25,991)		(26,196)		(3.1)				(30,099)		(13.6)
Total	$		23,856,391		23,262,887		10.1	%	$		22,429,565		6.4	%

(1)  Percentage change is annualized.    

Synovus

     CREDIT QUALITY DATA

       (Unaudited)

(Dollars in thousands)				2016				2015				4th Quarter
		Fourth     Quarter		Third         Quarter		Second         Quarter		First         Quarter		Fourth         Quarter		‘16 vs. ‘15 Change
Non-performing Loans	$	153,378			148,155		154,072		178,167		168,370		(8.9)  %
Impaired Loans Held for Sale(1)		-			2,473		-		-		-		-
Other Real Estate		22,308			28,438		33,289		38,462		47,030		(52.6)
Non-performing Assets		175,686			179,066		187,361		216,629		215,400		(18.4)
Allowance for loan losses		251,758			253,817		255,076		254,516		252,496		(0.3)
Net Charge-Offs - Quarter		8,319			6,930		6,133		7,357		3,425		142.9
Net Charge-Offs - YTD		28,739			20,420		13,490		7,357		27,831		3.3
Net Charge-Offs / Average Loans - Quarter(2)		0.14	%		0.12		0.11		0.13		0.06
Net Charge-Offs / Average Loans - YTD(2)		0.12			0.12		0.12		0.13		0.13
Non-performing Loans / Loans		0.64			0.64		0.67		0.78		0.75
Non-performing Assets / Loans, Other Loans Held for Sale & ORE		0.74			0.77		0.81		0.95		0.96
Allowance / Loans		1.06			1.09		1.11		1.12		1.13
Allowance /Non-performing Loans		164.14			171.32		165.56		142.85		149.96
Allowance /Non-performing Loans(3)		202.01			198.94		195.25		173.64		189.47
Past Due Loans over 90 days and Still Accruing	$	3,135			5,358		5,964		3,214		2,621		19.6
As a Percentage of Loans Outstanding		0.01	%		0.02		0.03		0.01		0.01
Total Past Due Loans and Still Accruing	$	65,106			61,781		55,716		63,852		47,912		35.9
As a Percentage of Loans Outstanding		0.27	%		0.27		0.24		0.28		0.21
Accruing Troubled Debt Restructurings (TDRs)	$	195,776			201,896		205,165		209,159		223,873		(12.6)
(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) Excludesnon-performing loans for which the expected loss has been charged off.
SELECTED CAPITAL INFORMATION (1) (Unaudited) (Dollars in thousands)
		December 31, 2016		September 30,   2016		December 31,   2015
Tier 1 Capital	$	2,685,880			2,620,379		2,660,016
Total Risk-Based Capital		3,201,268			3,139,465		3,255,758
Common Equity Tier 1 Ratio (transitional)		9.96	%		9.96		10.37
Common Equity Tier 1 Ratio (fullyphased-in)		9.52			9.48		9.77
Tier 1 Capital Ratio		10.08			10.05		10.37
Total Risk-Based Capital Ratio		12.01			12.04		12.70
Tier 1 Leverage Ratio		8.99			8.98		9.43
Common Equity as a Percentage of Total Assets (2)		9.31			9.35		9.98
Tangible Common Equity as a Percentage of Tangible Assets(3)		9.09			9.28		9.90
Tangible Common Equity as a Percentage of Risk Weighted Assets(3)		10.24			10.58		11.11
Book Value Per Common Share(4)		22.92			22.89		22.19
Tangible Book Value Per Common Share (3)		22.32			22.69		21.99

     (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.