[GRAPHIC OMITTED][GRAPHIC OMITTED]
For Immediate Release
Contact: Patrick A. Reynolds
Director of Investor Relations
(706) 649-4973
Synovus Financial Corp.(R) Revenues Grow 21% in 1999
Fee Income and Loan Growth Drive 15% Gain in Earnings
Columbus, Ga., January 12, 2000 -- Synovus Financial Corp.
(NYSE: "SNV"), the Columbus, Georgia-based multi-financial services
company, today announced record net income for 1999. As total revenues
for the year increased 20.8% over 1998, net income for the year was
$225,306,895, up 14.7% over 1998 net income of $196,465,447. Diluted
earnings per share were $0.80 for the year, up 12.2% over $0.71 per
share in 1998. Two major growth areas -- fee income from both Total
System Services, Inc.(R) (TSYS(R)) (NYSE: "TSS"), Synovus' 80.8% owned
credit card-processing unit and banking operations; and core commercial
lending -- were the primary contributors to the excellent increases in
revenues. Expense control management positively impacted the growth in
net income.
"This year has been another exceptional year for Synovus and
we look very optimistically to 2000 and the new millennium. We continue
to position ourselves to move swiftly and execute decisively to offer
our customers the highest value products and services in the financial
services marketplace," said James H. Blanchard, Synovus Financial Corp.
Chairman and Chief Executive Officer. "Our Service Beyond Banking --
One Relationship, Every Service -- offers the complete financial
solutions our customers need, as evidenced by the tremendous loan
growth and continuing significant growth in fee based services we
experienced in 1999. TSYS converted major retail portfolios -- Sears,
Canadian Tire, and Nordstrom -- to the TS2 processing platform in 1999,
which contributed significantly to its increase in revenues over 1998.
We expect TSYS to dramatically enhance its Internet servicing
capabilities and its dominant leadership in the commercial card and
retail card-processing areas in 2000 and beyond, while continuing to
emphasize the superiority of TS2 as the premier card-processing
software platform in the industry. In December, Fortune magazine
recognized Synovus as one of the top five best places to work in
America in 1999, again reaffirming our commitment to our team members
to provide an environment where everyone knows someone cares about
them."
Return on assets for 1999 was 1.97% and return on equity was
19.33%, as compared to 2.00% and 19.39%, respectively, for 1998. Total
assets at year-end 1999 were $12.5 billion, an increase of 16.1% from
year-end 1998. Shareholders' equity at the year-end 1999 was $1.227
billion, which represented 9.78% of year-end assets. Asset quality
continued to improve in 1999. Reflecting the continued strength of the
Southeastern regional economy and the emphasis on high credit quality
and credit management, the ratio of nonperforming assets to loans and
other real estate decreased to .38% at year-end 1999 from .40% at
year-end 1998. Net charge-offs for 1999 were .29% of average loans, as
compared to .35% for 1998. The loan loss reserve was 1.41% of loans,
which provides coverage of 457% of nonperforming loans. Provision for
loan losses was 26.5% above 1998 levels, and exceeded charge-offs by
1.45x in 1999 versus 1.09x in 1998.
Synovus Financial Corp.(R) Revenues Grow 21% in 1999/p. 2
For the fourth quarter of 1999, net income was $63,255,820, up
12.5% from net income of $56,214,793 earned in the same period last
year. Fourth quarter diluted earnings per share increased 10.4% to
$0.22 from the $0.20 earned per share in the fourth quarter of 1998.
Annualized return on assets and return on equity for the fourth quarter
were 2.06 % and 20.89 %, respectively, compared to 2.15 % and 20.39 %
for the same period last year.
Synovus banking operations' revenues increased 13.2% over
1998, while net income increased 11.9% over last year. Return on assets
for 1999 was 1.49% and return on equity was 18.04%, compared to 1.55%
and 18.16%, respectively, in 1998. Net interest income increased by
13.0% versus 1998, due to net loan growth of 19.4% and a net interest
margin of 5.05% for the year. Banking operations' non-interest income
grew 20.8%, with increases in trust service fees of 31%, credit card
fees of 11%, brokerage revenues of 20% and service charges of 12% over
1998. During the fourth quarter of 1999, Synovus banking operations
sold five bank branches to non-affiliated banking companies, which
added $3.5 million to net after-tax income. Total banking operations'
non-interest income as a percentage of total banking revenues --
excluding securities gains/losses -- was 26% in 1999 and 28% in the
fourth quarter. Fundamental growth in G&A expenses remained flat for
the second half of 1999 from its second quarter peak. Efficiency ratio
for the year was 58.2% and 57.7% for the fourth quarter of 1999.
TSYS' reported revenues for 1999 were $533,926,000, a 34.8%
increase over 1998. TSYS' record net income for 1999 was $68,593,000,
up 25.1% from $54,831,000 last year. During 1999, TSYS completed
conversions that increased the number of accounts on file to more than
206 million, and propelled TSYS to become the industry's leading
processor of private-label cards. TSYS now processes more than 147
million cardholder accounts on TS2, the industry's most technologically
advanced card-processing system. Additionally, TSYS is the industry's
leading processor of Visa and MasterCard commercial/procurement cards.
Recently, TSYS announced that it expects its 2000 net income to exceed
its 1999 net income by 20%. With Total System's contribution, Synovus'
total non-interest income -- excluding securities gains/losses -- was
59% of revenues for 1999.
Synovus Financial Corp. (Syn -o- vus) is a $12.5
billion asset, multi-financial services company composed of 38 banks
serving communities throughout Georgia, Alabama, Florida and South
Carolina; an 80.8% ownership of Total System Services, Inc. (NYSE:
"TSS") (www.totalsystem.com), one of the world's leading information
technology processors of data, transactions and payments for domestic
and international issuers of credit, debit, commercial and
private-label cards; Synovus Trust Company, one of the Southeast's
largest providers of trust services; Synovus Securities, Inc., a
full-service brokerage firm; and Synovus Mortgage Corp., which offers
mortgage services throughout the Southeast. The name "Synovus" was
created by the combination of synergy and novus: synergy, meaning the
interaction of separate components such that the total effect is
greater than the sum of its parts; and novus (Latin for "new"), meaning
usually of superior quality and different from the others listed in the
same category. See Synovus on the web at www.synovus.com.
This press release contains statements that constitute
"forward-looking statements" within the meaning of the Securities Act
of 1933 and the Securities Exchange Act of 1934 as amended by the
Private Securities Litigation Reform Act of 1995."Forward-looking"
statements contained in this press release include the intent, belief
or current expectations of Synovus and members of its senior management
team with respect to the internet servicing capabilities of TSYS, TSYS'
market position in the commercial card and retail card processing areas
and the percentage increase in earnings of TSYS expected for the year
2000, as well as the assumptions upon which such statements are based.
Prospective investors are cautioned that any such forward-looking
statements are not guarantees of future performance and
Synovus Financial Corp.(R) Revenues Grow 21% in 1999/p. 3
involve risks and uncertainties, and that actual results may differ
materially from those contemplated by such forward-looking statements.
Important factors currently known to management that could cause actual
results to differ materially from those contemplated by the
forward-looking statements in this press release include, but are not
limited to, lower than anticipated internal growth rates for TSYS'
existing customers, TSYS' inability to control expenses associated with
the growth in its number of employees, the inability of TSYS to grow
its business through acquisitions, adverse developments with respect to
entering into contracts with new clients and retaining current clients,
adverse developments with respect to the successful conversion of
clients, failure to successfully complete TSYS' Year 2000 modification
plans substantially as scheduled and budgeted, adverse developments
with respect to the credit card industry in general and overall market
conditions. Additional factors that could cause actual results to
differ materially from those contemplated in this press release can be
found in Synovus' and TSYS' Reports on Form 10-Q for the Quarter ended
September 30, 1999, filed with the Securities and Exchange Commission.
Synovus Financial Corp.
INCOME STATEMENT Twelve Months Ended
(Amounts in thousands, except per share data) December 31,
---------------------------------------------------
1999 1998 Change
--------------------------------------------------
Interest Income (Taxable equivalent) ................................ $893,316 796,955 12.1 %
Interest Expense .................................................... 374,713 337,253 11.1
- ---------------------------------------------------------------------------------------------------------------------------
Net Interest Income (Taxable equivalent) ............................ 518,603 459,702 12.8
Tax equivalent adjustment ........................................... 5,309 4,637 14.5
- ---------------------------------------------------------------------------------------------------------------------------
Net Interest Income ................................................. 513,294 455,065 12.8
Provision for Loan Losses ........................................... 34,007 26,882 26.5
- ---------------------------------------------------------------------------------------------------------------------------
Net Interest Income After Provision ................................. 479,287 428,183 11.9
- ---------------------------------------------------------------------------------------------------------------------------
Non-Interest Income:
Fees For Trust Services ......................................... 20,031 15,341 30.6
Service Charges ................................................. 80,763 72,238 11.8
Data Processing ................................................. 490,154 365,605 34.1
Mortgage Banking Income ......................................... 21,196 21,302 (0.5)
Credit Card Fees ................................................ 15,123 13,581 11.4
Brokerage Revenue ............................................... 13,632 11,360 20.0
Securities Gains (Losses) ....................................... 1,202 1,299 (7.5)
Other Non-Interest Income ....................................... 97,664 81,487 19.9
- ---------------------------------------------------------------------------------------------------------------------------
Total Non-Interest Income ........................................... 739,765 582,213 27.1
- ---------------------------------------------------------------------------------------------------------------------------
Non-Interest Expense:
Personnel Expense ................................................ 457,741 390,142 17.3
Occupancy & Equipment Expense .................................... 208,197 158,218 31.6
Other Non-Interest Expense ....................................... 190,611 147,452 29.3
Minority Interest ................................................ 13,188 10,559 24.9
- ---------------------------------------------------------------------------------------------------------------------------
Total Non-Interest Expense .......................................... 869,737 706,371 23.1
- ---------------------------------------------------------------------------------------------------------------------------
Income Before Taxes ................................................. 349,315 304,025 14.9
Income Tax Expense .................................................. 124,008 107,560 15.3
- ---------------------------------------------------------------------------------------------------------------------------
Net Income .......................................................... 225,307 196,465 14.7
===========================================================================================================================
Basic Earnings per Share ............................................ 0.80 0.72 11.6
Diluted Earnings per Share .......................................... 0.80 0.71 12.2
Dividends Declared per Share ........................................ 0.36 0.29 22.8
Return on Assets .................................................... 1.97 2.00 (3)bp
Return on Equity .................................................... 19.33 19.39 (6)
Average Shares Outstanding - Basic .................................. 280,016 272,416 2.8 %
Average Shares Outstanding - Diluted ................................ 283,355 277,223 2.2
bp - change is measured as difference in basis points.
Synovus Financial Corp.
INCOME STATEMENT 1999 1998 4th Quarter
--------------------------------------------------------------- --------------
(Amounts in thousands, except per share data) Fourth Third Second First Fourth '99 vs.'98
Quarter Quarter Quarter Quarter Quarter Change
--------------------------------------------------------------- --------------
Interest Income (Taxable equivalent) .......... $241,604 227,094 216,395 208,223 206,815 16.8 %
Interest Expense .............................. 104,335 95,009 89,001 86,368 86,256 21.0
- ----------------------------------------------------------------------------------------------------------------------------------
Net Interest Income (Taxable equivalent) ...... 137,269 132,085 127,394 121,855 120,559 13.9
Tax equivalent adjustment ..................... 973 1,451 1,493 1,392 1,360 (28.5)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Interest Income ........................... 136,296 130,634 125,901 120,463 119,199 14.3
Provision for Loan Losses ..................... 8,664 8,613 9,515 7,215 6,331 36.9
- ----------------------------------------------------------------------------------------------------------------------------------
Net Interest Income After Provision ........... 127,632 122,021 116,386 113,248 112,868 13.1
- ----------------------------------------------------------------------------------------------------------------------------------
Non-Interest Income:
Fees For Trust Services ................... 4,985 5,041 4,755 5,250 4,237 17.7
Service Charges ........................... 21,633 20,542 19,085 19,503 19,113 13.2
Data Processing ........................... 132,706 126,589 126,199 104,660 100,633 31.9
Mortgage Banking Income ................... 4,927 5,063 5,402 5,804 6,974 (29.4)
Credit Card Fees .......................... 4,451 3,948 3,572 3,152 4,305 3.4
Brokerage Revenue ......................... 3,261 3,036 3,612 3,723 3,019 8.0
Securities Gains (Losses) ................. 328 159 268 447 549 (40.3)
Other Non-Interest Income ................. 32,169 22,561 20,580 22,354 25,365 26.8
- ----------------------------------------------------------------------------------------------------------------------------------
Total Non-Interest Income ..................... 204,460 186,939 183,473 164,893 164,195 24.5
- ----------------------------------------------------------------------------------------------------------------------------------
Non-Interest Expense:
Personnel Expense .......................... 124,113 113,359 112,044 108,225 102,850 20.7
Occupancy & Equipment Expense .............. 56,641 53,991 51,627 45,938 43,817 29.3
Other Non-Interest Expense ................. 48,483 48,466 50,056 43,606 39,569 22.5
Minority Interest .......................... 3,899 3,257 3,542 2,490 3,421 14.0
- -----------------------------------------------------------------------------------------------------------------------------
Total Non-Interest Expense .................... 233,136 219,073 217,269 200,259 189,657 22.9
- -----------------------------------------------------------------------------------------------------------------------------
Income Before Taxes ........................... 98,956 89,887 82,590 77,882 87,406 13.2
Income Tax Expense ............................ 35,700 31,882 29,277 27,149 31,191 14.5
- -----------------------------------------------------------------------------------------------------------------------------
Net Income .................................... 63,256 58,005 53,313 50,733 56,215 12.5
=============================================================================================================================
Basic Earnings per Share ...................... 0.22 0.21 0.19 0.18 0.20 10.2
Diluted Earnings per Share .................... 0.22 0.21 0.19 0.18 0.20 10.4
Dividends Declared per Share .................. 0.09 0.09 0.09 0.09 0.07 22.8
Return on Assets .............................. 2.06 % 1.98 1.92 1.91 2.15 (9)bp
Return on Equity .............................. 20.89 19.65 18.56 18.10 20.39 50
Average Shares Outstanding - Basic ............ 281,901 279,694 279,509 278,930 276,165 2.1 %
Average Shares Outstanding - Diluted .......... 285,392 282,806 282,470 282,723 280,149 1.9
bp - change is measured as difference in basis points.
Synovus Financial Corp.
SELECTED BALANCE SHEET DATA 1999 1998 4th Quarter
- --------------------------------------------------------------------------------------------------------------- ---------------
(Amounts in thousands, except per share data) Fourth Third Second First Fourth '99 vs. '98
Quarter Quarter Quarter Quarter Quarter Change
- --------------------------------------------------------------------------------------------------------------- ---------------
Total Assets...................................$12,547,001 11,977,091 11,497,272 10,942,561 10,811,592 16.1 %
Investment Securities ......................... 1,993,957 1,998,733 1,976,782 1,933,056 1,877,473 6.2
Loans (net of unearned income) ................ 9,068,239 8,599,672 8,171,059 7,828,454 7,603,605 19.3
Total Deposits ................................ 9,440,087 9,275,346 9,217,075 8,714,844 8,797,412 7.3
Demand Deposits ........................... 1,625,313 1,550,820 1,527,682 1,384,713 1,433,929 13.3
Certificates of Deposit ................... 4,239,144 4,111,241 3,972,081 3,790,202 3,790,366 11.8
Savings Accounts .......................... 444,493 466,391 474,753 474,731 457,710 (2.9)
NOW Accounts .............................. 1,364,244 1,325,344 1,367,567 1,351,321 1,406,885 (3.0)
Money Market .............................. 1,766,893 1,821,550 1,874,992 1,713,877 1,708,522 3.4
Shareholders' Equity ......................... 1,226,669 1,185,845 1,152,805 1,142,599 1,111,917 10.3
Book Value Per Share .......................... 4.35 4.24 4.12 4.09 3.99 9.0
Equity to Assets .............................. 9.78 9.90 10.03 10.44 10.28 (50)bp
Loan to Deposit Ratio ......................... 96.06 92.72 88.65 89.83 86.43 963
Demand Deposits / Total Deposits .............. 17.22 16.72 16.57 15.89 16.30 92
Common Shares Outstanding ..................... 282,014 279,727 279,634 279,268 278,414 1.3 %
CREDIT QUALITY DATA 1999 1998 4th Quarter
- --------------------------------------------------------------------------------------------------------------- ---------------
(Dollars in thousands) Fourth Third Second First Fourth '99 vs. '98
Quarter Quarter Quarter Quarter Quarter Change
- --------------------------------------------------------------------------------------------------------------- ---------------
Nonperforming Loans...........................$ 27,924 26,628 24,186 21,081 21,208 31.7 %
Other Real Estate ............................. 6,718 8,668 8,721 9,484 9,536 (29.6)
Nonperforming Assets ......................... 34,642 35,296 32,907 30,565 30,744 12.7
Reserve for Loan Losses ....................... 127,558 122,560 118,923 115,150 114,109 11.8
Net Charge-Offs - Quarter...................... 6,301 4,978 5,741 6,466 8,116 (22.4)
Net Charge-Offs - YTD.......................... 23,486 17,185 12,207 6,466 24,650 (4.7)
Net Charge-Offs / Average Loans - Quarter...... 0.29 0.24 0.29 0.34 0.44 (15)bp
Net Charge-Offs / Average Loans - YTD.......... 0.29 0.29 0.31 0.34 0.35 (6)
Nonperforming Loans / Loans & ORE ............. 0.31 0.31 0.30 0.27 0.28 3
Nonperforming Assets / Loans & ORE ............ 0.38 0.41 0.40 0.39 0.40 (2)
Loan Loss Reserve / Loans ..................... 1.41 1.43 1.46 1.47 1.50 (9)
Reserve / Nonperforming Loans ................. 456.80 460.27 491.70 546.24 538.05 (8,125)
Reserve / Nonperforming Assets ................ 368.22 347.23 361.39 376.74 371.16 (294)
bp - change is measured as difference in basis points.
Synovus Financial Corp.
AVERAGE BALANCES AND YIELDS/RATES
(Amounts in thousands)
- ------------------------------------------------------------------------------------------------------------------------------------
Interest Earning Assets 1999 1998 Twelve Months Ended
Fourth Third Second First Fourth December 31,
Quarter Quarter Quarter Quarter Quarter 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Securities ................. $ 2,030,615 2,002,149 1,955,537 1,888,167 1,773,504 $ 1,969,597 1,723,815
Yield .............................. 6.29 % 6.23 6.21 6.26 6.36 6.24 % 6.49
Loans, Net ............................ $ 8,701,890 8,230,396 7,882,989 7,564,489 7,273,362 $ 8,098,428 6,885,724
Yield .............................. 9.45 % 9.33 9.34 9.41 9.56 9.38 % 9.79
Mortgage Loans Held for Sale .......... $ 80,513 102,053 98,199 129,880 163,667 $ 102,524 95,699
Yield .............................. 8.15 % 6.89 7.26 7.63 5.21 7.47 % 5.75
Federal Funds Sold $ .................. $ 89,768 38,394 42,610 55,763 83,675 $ 57,730 92,456
Yield .............................. 5.53 % 5.01 4.83 4.30 5.22 4.92 % 5.50
Time Deposits with Banks .............. $ 1,835 1,766 1,313 1,328 862 $ 1,562 896
Yield .............................. 5.94 % 4.58 5.80 6.47 5.41 5.63 % 5.67
Total Interest Earning Assets ......... $10,904,621 10,374,758 9,980,648 9,639,627 9,295,070 $10,229,841 8,798,590
====================================================================================================================================
Yield .............................. 8.82 % 8.69 8.69 8.74 8.84 8.73 % 9.06
====================================================================================================================================
Interest Bearing Liabilities
Time Deposits Over $100,000 ........... $ 1,736,249 1,621,882 1,452,402 1,292,243 1,292,453 $ 1,527,174 1,322,921
Rate ............................... 5.50 % 5.34 5.36 5.44 5.67 5.41 % 5.77
Time Deposits Under $100,000 .......... $ 2,446,971 2,414,831 2,407,717 2,477,813 2,478,772 $ 2,436,688 2,387,392
Rate ............................... 5.20 % 5.11 5.19 5.39 5.53 5.22 % 5.60
Other Interest Bearing Deposits ....... $ 3,625,893 3,693,419 3,641,137 3,510,636 3,324,477 $ 3,618,294 3,107,981
Rate ............................... 3.23 % 3.17 3.09 3.08 3.14 3.14 % 3.34
Federal Funds Purchased ............... $ 1,071,473 741,094 667,550 634,025 407,042 $ 779,631 302,396
Rate ............................... 5.29 % 4.94 4.68 4.62 4.64 4.94 % 4.86
Other Short-Term Borrowings ........... $ 7,806 7,701 6,832 6,935 8,562 $ 7,322 9,221
Rate ............................... 5.07 % 4.99 5.50 4.48 5.18 5.01 % 5.67
Other Borrowings ...................... $ 281,191 211,034 163,358 139,089 136,480 $ 199,091 131,381
Rate ............................... 5.81 % 5.72 5.76 5.92 5.70 5.79 % 5.94
Total Interest Bearing Liabilities .... $ 9,169,583 8,689,961 8,338,996 8,060,741 7,647,786 $ 8,568,200 7,261,292
====================================================================================================================================
Rate ............................... 4.51 % 4.33 4.28 4.34 4.47 4.37 % 4.64
====================================================================================================================================
Non-Interest Bearing Demand Deposits... $ 1,535,658 1,514,651 1,406,698 1,342,353 1,398,064 $ 1,450,548 1,324,255
Shareholders' Equity .................. $ 1,201,225 1,171,188 1,152,026 1,136,489 1,093,922 $ 1,165,426 1,013,334
Total Assets .......................... $12,188,029 11,624,783 11,137,558 10,786,974 10,395,593 $11,438,696 9,827,925
Spread ................................ 4.31 % 4.35 4.41 4.40 4.37 4.37 % 4.42
Net Interest Margin ................... 5.02 % 5.05 5.11 5.11 5.16 5.07 % 5.23