Exhibit 99.1
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[LOGO] NEWS RELEASE
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For Immediate Release
Contact: Patrick A. Reynolds
Director of Investor Relations
(706) 649-4973
Synovus(R)Reports 8.4% Increase in Net Income for Third Quarter 2003
Net Interest Income, Mortgage Revenue, and TSYS Drive Profitability
Columbus, Ga., October 15, 2003 -- Synovus' third quarter
earnings grew 8.4% over the third quarter 2002 to $100.0 million, or
$.33 per share, Synovus Chairman and CEO James H. Blanchard announced
today.
"We are very pleased to report excellent third quarter
results," said Blanchard. "While our net interest income increased by
5.6%, due to efficient net interest margin management, our non-interest
income before reimbursable items increased by 14.3%, led by mortgage revenue
which increased 67%, over the third quarter last year. TSYS' revenues before
reimbursable items increased by 14.9% and net income increased by 8.2% over
the same period last year."
Return on assets for the quarter was 1.91% and return on
equity was 18.32%, as compared to 2.06% and 19.12%, respectively, for
the third quarter 2002. Shareholders' equity at September 30, 2003, was
$2.18 billion, which represented a very strong 10.35% of quarter-end
assets. Total assets ended the quarter at $21.0 billion, an increase of
13.6% from the same period last year.
Net income for the Synovus Financial Services segment
increased 8.6% over the third quarter last year. Return on assets for
the quarter was 1.42% and return on equity was 17.44%. Loans grew by
13.2% (9.3% excluding acquisitions and divestitures) over the third
quarter last year. The net interest margin was 4.22% for the quarter,
compared to 4.25% in the second quarter. The margin compression was
contained at a 3 basis point level by adhering to pricing discipline on
both deposits and loans, after the 25 basis point Federal Reserve cut
on June 25, 2003. The net charge-off ratio was 0.32%, equal to 0.32%
last quarter and 0.32% in the third quarter last year. The ratio of
nonperforming assets to loans and other real estate was 0.73% equal to
0.73% in the previous quarter. Past due levels remained very favorable
with total past dues at 0.70% of loans at quarter end. The allowance
for loan losses remained at 1.40%, unchanged from last quarter. The
allowance for loan losses provides coverage of 239% of nonperforming
loans and the provision for loan losses covered net charge-offs by
1.20x for the quarter. Management remains confident about the quality
of the loan portfolio. During the quarter, Synovus repurchased 450,000
shares for approximately $10.7 million from our current $200 million
authorization.
Non-interest income for the Financial Services segment was up
18.7% (14.8% excluding acquisitions, divestitures, and securities
gains/losses) compared to the third quarter last year. In addition to
net mortgage revenue increase of 67.0%, service charges on deposits
increased 10.0% and credit card fees increased 18.3% as compared to the
same period last year. Financial Management Services and insurance
revenues increased 5.1% over last year, with brokerage up 22.1%, and
trust up 3.8%. Financial
Post Office Box 120 / Columbus, GA 31902
www.synovus.com
Synovus Reports 8.4% Increase in Net Income for Third Quarter 2003/2 of 8
Services' non-interest income - excluding securities gains/losses - was
29.4% of revenues for the quarter versus 27.0% in the third quarter
last year.
TSYS third quarter earnings grew 8.2% over the third quarter
2002 to $35.5 million, or $0.18 per share. TSYS revenues increased
11.1% (14.9% excluding reimbursable charges) in the quarter due to
strong growth from its existing customers' accounts on file of
approximately 11.3%, the cross sell of value added services which grew
revenues by 22.6%, and growth of international revenues of 39%. With
TSYS' contribution, Synovus' total non-interest income - excluding
securities gains/losses and reimbursable items at TSYS - was 60.1% of
revenues for the quarter versus 58.2% in the same period last year.
Blanchard concluded, "As the economy improves, we believe that
our current strategies, specifically emphasis on credit quality and
loan and deposit pricing, our team members, our technological
advantages, and our strong balance sheet will position us well to
achieve our historical levels of earnings growth. We further believe
these levels of growth will sustain our position among the top of the
industry performers."
Synovus will host an earnings highlights conference call at
4:30 pm ET, on October 15, 2003. The conference call will be available
in the Investor Relations section of www.synovus.com under the
"Conference Calls and Web-casts" tab. Please log on 5-10 minutes ahead
of the call time.
Synovus (NYSE: "SNV") is a diversified financial services
holding company with more than $21 billion in assets based in Columbus,
Ga. Synovus provides integrated financial services including banking,
financial management, insurance, mortgage and leasing services through
40 affiliate banks and other Synovus offices in Georgia, Alabama, South
Carolina, Florida and Tennessee; and electronic payment processing
through an 81-percent stake in TSYS (NYSE: "TSS"), the world's largest
third-party processor of international payments. Synovus is No. 9 on
FORTUNE magazine's list of "The 100 Best Companies To Work For" in
2003. 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' belief
with respect to achieving its historical levels of earnings growth and
sustaining its position at the top of industry performers and the
assumptions underlying such statements. 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, Synovus' inability to achieve its net
income goals for Financial Services; Synovus' inability to increase its
revenues derived from Financial Management Services and insurance;
Synovus' inability to control Financial Services' expenses; TSYS'
inability to achieve its net income goals for 2003; adverse
developments with respect to TSYS meeting its performance obligations
under its contract with Bank One; 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 prevailing interest
rates; the timely development of competitive new products and services
and the acceptance of such by customers; Synovus' inability to control
expenses; a deterioration in credit quality or a reduced demand for
credit; hostilities increase in the Middle East or elsewhere; 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
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