Exhibit 99
[GRAPHIC OMITTED][GRAPHIC OMITTED]
For Immediate Release
Contact: Patrick A. Reynolds
Director of Investor Relations
(706) 649-4973
Synovus Financial Corp.(R)Reports 18.7% Increase in Net Income for 2001
Net Interest Income and TSYS Income Growth Drive Profitability
Columbus, Ga., January 16, 2002 -- Synovus Financial Corp.
(NYSE: "SNV"), the Columbus, Ga.-based multi-financial services
company, today announced net income was $311.6 million for 2001, up
18.7%, and $85.2 million for the fourth quarter of 2001, up 14.1%,
compared to $262.6 million and $74.7 million, for the same periods in
2000. Diluted earnings per share were $1.05 for the year, up 15.1% over
last year's $0.92. For the fourth quarter, diluted earnings per share
were $0.29, an increase of 11.0% over $0.26 per share for the same
period in 2000. Major contributors to the growth in net income include
strong growth in loans and fee income. An improving net interest margin
and expense management also positively impacted the growth in net
income.
"We are very pleased to report record earnings for 2001 and
excellent fourth quarter results," said James H. Blanchard, Synovus
Financial Corp. Chairman and Chief Executive Officer. "Our outstanding
loan growth of 15.5% over last year, coupled with continued strong
credit quality, added substantially to our excellent results. TSYS
increased net income by 36.5% over the fourth quarter last year and
20.2% over the full year 2000. Bank fee income increased by 21.0%, with
mortgage revenue leading the way with a 76.0% increase over last year."
Blanchard continued, "Our vision is for Synovus to be the
finest financial services company in the world. We believe that our
current strategies, team members, technological advantages, and our
strong balance sheet position us well for future earnings growth.
Notwithstanding the tragedy of September 11th and evolving economic
conditions, we are cautiously optimistic that the Southeastern economy
will support our earnings per share growth targets. Considering these
factors, we presently anticipate our earnings per share growth for 2002
and 2003 to be in the 15-18% range."
Return on assets for the quarter was 2.11% and return on
equity was 20.51%, as compared to 2.09% and 21.75%, respectively, for
the fourth quarter 2000. For 2001, return on assets was 2.03% and
return on equity was 20.13% as compared to 1.95% and 20.14%,
respectively, in 2000. Total assets ended the quarter at $16.7 billion,
an increase of 11.7% from the same period last year. Shareholders'
equity at December 31, 2001, was $1.695 billion, which represented
10.17% of quarter-end assets.
Post Office Box 120 / Columbus, GA 31902
www.synovus.com
Synovus Financial Corp.(R)Reports 18.7% Increase in Net Income for 2001/p. 2
Asset quality remained strong during the fourth quarter.
Reflecting the emphasis on high credit quality and credit management,
the ratio of nonperforming assets to loans and other real estate was
0.54%, the allowance for loan losses was 1.38% of loans, and net
charge-offs were 0.39% of average loans for the fourth quarter, as
compared to 0.52%, 1.38%, and 0.27%, respectively, last year. Net
charge-offs for the full year were 0.30% of average loans compared to
0.24% for 2000. The allowance for loan losses provides coverage of 331%
of nonperforming loans.
Synovus banking operations' revenues increased 14.7% over
2000, while net income increased 18.4% over last year. Return on assets
for 2001 was 1.52% and return on equity was 19.21%, compared to 1.46%
and 19.18%, respectively, in 2000. Net interest income increased by
12.5% versus 2000, due to net loan growth of 15.5% and a net interest
margin of 4.65% for the year and 4.80% in the fourth quarter. Banking
operations' non-interest income grew 21.0%, with increases in mortgage
banking of 76.0%, service charges on deposits of 13.9%, trust revenues
of 19.4%, credit card fees of 10.7%, and brokerage revenues of 1.9%
over 2000. Synovus Wealth Management revenues grew 22% over last year
including acquisitions completed during the year. Creative Financial
Group, acquired in the first quarter, added $4.5 million in revenue to
Synovus Wealth Management for 2001. Total banking operations'
non-interest income as a percentage of banking revenues -- excluding
securities gains/losses -- was 28.1% for the year up from 26.7% in
2000. G&A expenses were up 11.5% for the year, due primarily to the
funding of incentive compensation plans in 2001 which were
significantly reduced in 2000. The fundamental G&A expense growth for
the year was 6.7%. The efficiency ratio for the year was 53.8% versus
55.4% for 2000.
TSYS reported net income of $102.9 million for 2001, a 20.2%
increase in net income over the same period last year. TSYS expects an
increase of net income for 2002 over 2001 of at least 20%. With TSYS'
contribution, Synovus' total non-interest income -- excluding
securities gains/losses -- was 59.8% of revenues for the full year
2001.
Synovus will host an earnings highlights conference call at
4:15 ET, on January 16, 2002. The conference call can be accessed at
www.synovus.com. Please log on 5-10 minutes ahead of the call time.
Synovus Financial Corp. (NYSE: "SNV") is a multi-financial services
company with more than $16.7 billion in assets based in Columbus, Ga. Synovus is
composed of 38 banks in Georgia, Alabama, South Carolina and Florida; an
81.1-percent stake in Total System Services, Inc. (NYSE: "TSS") (www.tsys.com),
one of the world's leading payment services providers; Synovus Wealth
Management, a marketing unit for securities, trust, insurance and private
banking services; Synovus Mortgage Corp.; and Synovus Leasing Services. Synovus
is No. 8 on FORTUNE magazine's list of "The 100 Best Companies To Work For" in
2001. 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. These forward-looking
statements include, among others, statements regarding Synovus'
expected growth in earnings per share for 2002 and 2003, and TSYS'
expected growth in net income for 2002. Prospective investors are
cautioned that any such forward-looking statements are not guarantees
of future performance and involve risks and uncertainties, and that
actual results may differ materially from those contemplated by such
forward-looking statements. A number of important factors could cause
actual results to differ materially from those contemplated by the
forward-looking statements in this press release. Many of these factors
are beyond Synovus' ability to control or predict. These factors
include, but are not limited to, competitive pressures arising from
aggressive competition from other lenders; factors that affect the
delinquency rate on Synovus' loans and the rate at which Synovus' loans
are charged off; changes in the cost and availability of funding due to
changes in the deposit market and credit market, or the way in which
Synovus is perceived in such markets; changes in
Post Office Box 120 / Columbus, GA 31902
www.synovus.com
Synovus Financial Corp.(R) Reports 18.7% Increase in Net Income for 2001/p. 3
prevailing interest rates; the timely development and offering of
competitive new products and services and the acceptance of such by
customers; the growth and profitability of Synovus' non interest or fee
income, including changes in income derived from TSYS, being less than
expected; Synovus' inability to control expenses; a deterioration in
credit quality or a reduced demand for credit; Synovus' inability to
successfully manage any impact from slowing economic conditions or
consumer spending; the occurrence of catastrophic events that could
impact Synovus or TSYS or its major customers' operating facilities,
communication systems and technology or that has a material negative
impact on current economic conditions or levels of consumer spending;
successfully managing the potential both for patent protection and
patent liability in the context of rapidly developing legal framework
for expansive software patent protection; and the effects of changes in
government policy and regulations, including restrictions and/or
limitations arising from banking laws, regulations and examinations.
Additional factors that could cause actual results to differ materially
from those contemplated in this press release can be found in Synovus'
filings with the Securities and Exchange Commission, including its
Annual Report on Form 10-K, quarterly reports on Form 10-Q and current
reports on Form 8-K. We believe these forward-looking statements are
reasonable; however, undue reliance should not be placed on any
forward-looking statements, which are based on current expectations.
Post Office Box 120 / Columbus, GA 31902
www.synovus.com
Synovus Financial Corp.
INCOME STATEMENT Twelve Months Ended
(Amounts in thousands, except per share data) December 31,
-------------------------------------------------
2001 2000 Change
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Interest Income (Taxable Equivalent) $ 1,138,137 1,103,852 3.1 %
Interest Expense 501,097 535,473 (6.4)
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Net Interest Income (Taxable Equivalent) 637,040 568,379 12.1
Tax Equivalent Adjustment 7,249 6,047 19.9
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Net Interest Income 629,791 562,332 12.0
Provision for Loan Losses 51,673 44,341 16.5
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Net Interest Income After Provision 578,118 517,991 11.6
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Non-Interest Income:
Data Processing 643,566 580,969 10.8
Service Charges on Deposits 86,539 76,002 13.9
Fees For Trust Services 26,509 22,204 19.4
Brokerage Revenue 16,363 16,063 1.9
Mortgage Banking Income 38,272 21,741 76.0
Credit Card Fees 21,184 19,129 10.7
Securities Gains (Losses) 1,722 781 120.5
Other Fee Income 17,199 15,110 13.8
Other Non-Interest Income 86,343 81,514 5.9
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Total Non-Interest Income 937,697 833,513 12.5
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Non-Interest Expense:
Personnel Expense 566,084 495,477 14.3
Occupancy & Equipment Expense 235,652 225,675 4.4
Other Non-Interest Expense 204,227 202,122 1.0
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Total Non-Interest Expense 1,005,963 923,274 9.0
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Minority Interest in Consolidated Subsidiaries 19,859 16,495 20.4
Income Before Taxes 489,993 411,735 19.0
Income Tax Expense 178,377 149,178 19.6
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Net Income 311,616 262,557 18.7
============= ============== =========
Basic Earnings Per Share 1.07 0.93 15.9
Diluted Earnings Per Share 1.05 0.92 15.1
Dividends Declared Per Share 0.51 0.44 15.9
Return on Assets 2.03 1.95 8 bp
Return on Equity 20.13 20.14 (1)
Average Shares Outstanding - Basic 290,304 283,552 2.4 %
Average Shares Outstanding - Diluted 295,850 286,882 3.1
bp - change is measured as difference in basis points.
Synovus Financial Corp.
INCOME STATEMENT
(Amounts in thousands, except per share data) 2001 2000 4th Quarter
---------------------------------------------------------------- -------------
Fourth Third Second First Fourth '01 vs. '00
Quarter Quarter Quarter Quarter Quarter Change
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Interest Income (Taxable Equivalent) $ 271,378 282,587 289,867 294,305 296,527 (8.5)%
Interest Expense 98,716 122,035 134,146 146,200 151,430 (34.8)
-------------- ------------ --------- ---------- ---------- ------------
Net Interest Income (Taxable Equivalent) 172,662 160,552 155,721 148,105 145,097 19.0
Tax Equivalent Adjustment 1,890 1,834 1,833 1,692 1,555 21.5
-------------- ------------- --------- ---------- ---------- ------------
Net Interest Income 170,772 158,718 153,888 146,413 143,542 19.0
Provision for Loan Losses 16,717 10,799 13,170 10,987 11,096 50.7
-------------- ------------- --------- ---------- ---------- ------------
Net Interest Income After Provision 154,055 147,919 140,718 135,426 132,446 16.3
-------------- ------------- --------- ---------- ---------- ------------
Non-Interest Income:
Data Processing 169,135 163,692 160,437 150,302 149,611 13.0
Service Charges on Deposits 24,182 21,152 21,168 20,037 20,288 19.2
Fees For Trust Services 7,294 6,637 6,788 5,790 5,649 29.1
Brokerage Revenue 4,020 3,858 4,159 4,326 4,242 (5.2)
Mortgage Banking Income 10,668 8,938 10,197 8,469 6,146 73.6
Credit Card Fees 5,878 5,553 5,341 4,412 5,971 (1.6)
Securities Gains (Losses) 539 337 428 418 711 (24.2)
Other Fee Income 4,613 4,109 4,140 4,337 4,335 6.4
Other Non-Interest Income 23,491 16,883 20,080 25,889 26,082 (9.9)
-------------- ------------- ---------- ---------- ---------- ------------
Total Non-Interest Income 249,820 231,159 232,738 223,980 223,035 12.0
-------------- ------------- ---------- ---------- ---------- ------------
Non-Interest Expense:
Personnel Expense 152,920 141,455 137,441 134,268 121,658 25.7
Occupancy & Equipment Expense 59,749 58,088 60,541 57,274 60,945 (2.0)
Other Non-Interest Expense 51,861 50,711 51,061 50,594 51,598 0.5
-------------- ------------- ---------- ---------- ---------- ------------
Total Non-Interest Expense 264,530 250,254 249,043 242,136 234,201 12.9
-------------- ------------- ---------- ---------- ---------- ------------
Minority Interest in Consolidated Subsidiaries 5,651 4,976 5,027 4,205 4,178 35.3
Income Before Taxes 133,694 123,848 119,386 113,065 117,102 14.2
Income Tax Expense 48,483 44,943 43,771 41,180 42,420 14.3
-------------- ------------- ---------- ---------- ---------- ------------
Net Income 85,211 78,905 75,615 71,885 74,682 14.1
============== ============= ========== ---------- ---------- ------------
Basic Earnings Per Share 0.29 0.27 0.26 0.25 0.26 11.0
Diluted Earnings Per Share 0.29 0.27 0.26 0.25 0.26 11.0
Dividends Declared Per Share 0.13 0.13 0.13 0.13 0.11 15.9
Return on Assets 2.11 % 2.02 % 2.00 % 1.97 % 2.09 % 2 bp
Return on Equity 20.51 19.93 19.96 20.08 21.75 (124)
Average Shares Outstanding - Basic 292,271 290,868 290,315 287,707 284,423 2.8 %
Average Shares Outstanding - Diluted 296,556 297,357 296,218 293,248 288,559 2.8
bp - change is measured as difference in basis points.
Synovus Financial Corp.
SELECTED BALANCE SHEET DATA
(Amounts in thousands, except per share data) 2001 2000 4th Quarter
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Fourth Third Second First Fourth '01 vs. '00
Quarter Quarter Quarter Quarter Quarter Change
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Total Assets $ 16,657,947 15,781,130 15,654,130 15,181,807 14,908,092 11.7 %
Investment Securities 2,088,287 2,087,135 2,065,125 2,063,315 2,077,928 0.5
Loans (net of unearned income) 12,417,917 11,852,572 11,604,690 11,155,864 10,751,887 15.5
Total Deposits 12,146,198 11,525,774 11,561,515 11,487,328 11,161,710 8.8
Demand Deposits 1,984,524 1,750,644 1,822,591 1,725,783 1,726,817 14.9
Certificates of Deposit 5,183,225 5,200,227 5,238,816 5,368,835 5,132,065 1.0
Savings Accounts 420,311 422,393 420,520 423,292 404,806 3.8
NOW Accounts 1,916,259 1,677,840 1,717,637 1,638,446 1,749,971 9.5
Money Market 2,641,879 2,474,670 2,361,951 2,330,972 2,148,051 23.0
Shareholders' Equity 1,694,946 1,618,271 1,550,559 1,501,444 1,417,171 19.6
Book Value Per Share 5.75 5.56 5.34 5.18 4.98 15.5
Equity to Assets 10.17 10.25 9.91 9.89 9.51 66 bp
Loan to Deposit Ratio 102.24 102.84 100.37 97.11 96.33 591
Demand Deposits / Total Deposits 16.34 15.19 15.76 15.02 15.47 87
Common Shares Outstanding 294,674 291,057 290,615 289,766 284,643 3.5 %
CREDIT QUALITY DATA
(Dollars in thousands) 2001 2000 4th Quarter
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Fourth Third Second First Fourth '01 vs. '00
Quarter Quarter Quarter Quarter Quarter Change
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Nonperforming Loans $ 51,585 49,197 40,168 42,221 41,709 23.7 %
Other Real Estate 15,867 14,720 16,458 12,309 13,898 14.2
Nonperforming Assets 67,452 63,917 56,626 54,530 55,607 21.3
Allowance for Loan Losses 170,769 162,117 159,600 153,916 147,867 15.5
Net Charge-Offs - Quarter 12,023 8,280 7,486 7,198 7,203 66.9
Net Charge-Offs - YTD 34,988 22,965 14,684 7,198 24,032 45.6
Net Charge-Offs / Average Loans - Quarter 0.39 0.28 0.26 0.26 0.27 12 bp
Net Charge-Offs / Average Loans - YTD 0.30 0.27 0.26 0.26 0.24 6
Nonperforming Loans / Loans & ORE 0.42 0.42 0.35 0.38 0.39 3
Nonperforming Assets / Loans & ORE 0.54 0.54 0.49 0.49 0.52 2
Allowance / Loans 1.38 1.37 1.38 1.38 1.38 --
Allowance / Nonperforming Loans 331.04 329.52 397.33 364.55 354.52 (2,348)
Allowance / Nonperforming Assets 253.17 253.64 281.85 282.26 265.91 (1,274)
bp - change is measured as difference in basis points.
Synovus Financial Corp.
AVERAGE BALANCES AND YIELDS/RATES
(Amounts in thousands)
2001 2000 Twelve Months Ended
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Fourth Third Second First Fourth December 31,
Quarter Quarter Quarter Quarter Quarter 2001 2000
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Interest Earning Assets
- -----------------------------------
Investment Securities $ 2,025,366 2,011,548 2,023,000 2,019,418 2,066,747 $ 2,019,826 2,070,174
Yield 6.19 % 6.34 6.38 6.49 6.44 6.35 % 6.37
Loans, Net $ 11,967,899 11,498,072 11,183,502 10,875,712 10,481,789 $ 11,384,608 9,834,105
Yield 7.79 % 8.50 9.05 9.58 9.84 8.70 % 9.74
Mortgage Loans Held for Sale $ 262,476 181,372 204,998 143,613 107,266 $ 198,395 101,010
Yield 6.78 % 7.34 7.36 7.43 7.93 7.17 % 8.01
Federal Funds Sold $ 40,360 110,100 105,411 116,245 100,231 $ 92,869 86,730
Yield 3.73 % 3.80 4.61 5.90 6.73 4.67 % 6.50
Time Deposits with Banks $ 3,561 4,087 6,234 5,598 3,315 $ 4,862 2,062
Yield 2.29 % 3.62 5.40 5.05 6.88 4.35 % 7.95
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Total Interest Earning Assets $ 14,299,662 13,805,179 13,523,145 13,160,586 12,759,348 $ 13,700,560 12,094,081
Yield 7.54 % 8.13 8.59 9.05 9.25 8.31 % 9.13
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Interest Bearing Liabilities
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Time Deposits Over $100,000 $ 2,596,808 2,583,032 2,651,781 2,655,281 2,541,805 $ 2,621,460 2,203,775
Rate 4.51 % 5.28 5.86 6.45 6.62 5.53 % 6.27
Time Deposits Under $100,000 $ 2,526,555 2,602,377 2,653,134 2,653,402 2,553,801 $ 2,608,502 2,492,611
Rate 4.78 % 5.48 5.94 6.19 6.15 5.60 % 5.76
Other Interest Bearing Deposits $ 4,777,271 4,459,166 4,310,544 4,159,123 3,942,170 $ 4,428,309 3,770,102
Rate 1.56 % 2.44 2.88 3.55 3.90 2.57 % 3.68
Federal Funds Purchased $ 1,334,622 1,207,804 1,084,710 939,064 1,163,725 $ 1,142,815 1,240,160
Rate 2.00 % 3.48 4.23 5.59 6.48 3.65 % 6.18
Other Short-Term Borrowings $ 8,707 20,228 6,530 8,687 6,935 $ 11,063 8,823
Rate 2.16 % 3.24 3.97 5.14 6.43 3.50 % 5.89
Other Borrowings $ 963,619 923,290 884,027 867,715 719,639 $ 909,963 578,366
Rate 5.38 % 5.74 6.14 6.38 6.33 5.91 % 6.27
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Total Interest Bearing Liabilities $ 12,207,582 11,795,897 11,590,726 11,283,272 10,928,075 $ 11,722,112 10,293,837
Rate 3.20 % 4.10 4.63 5.24 5.49 4.27 % 5.18
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Non-Interest Bearing Demand Deposits $ 1,755,795 1,693,111 1,691,382 1,634,027 1,562,935 $ 1,693,910 1,562,096
Shareholders' Equity $ 1,647,933 1,570,921 1,519,296 1,451,560 1,365,732 $ 1,548,030 1,303,634
Total Assets $ 16,024,208 15,474,907 15,194,239 14,792,026 14,224,874 $ 15,375,004 13,466,385
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Spread 4.33 % 4.03 3.96 3.81 3.76 4.04 % 3.94
Net Interest Margin 4.80 % 4.62 4.61 4.55 4.53 4.65 % 4.70
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