Exhibit 99.2
3 of 8
SYNOVUS
INCOME STATEMENT
(In thousands, except per share data)
Nine Months Ended
September 30,
---------------------------------------------------
2003 2002 Change
---------- ---------- ------
Interest Income (Taxable Equivalent) $ 802,301 791,289 1.4 %
Interest Expense 231,114 254,997 (9.4)
---------- ---------- -----
Net Interest Income (Taxable Equivalent) 571,187 536,292 6.5
Tax Equivalent Adjustment 5,554 5,395 2.9
---------- ---------- -----
Net Interest Income 565,633 530,897 6.5
Provision for Loan Losses 51,977 49,497 5.0
---------- ---------- -----
Net Interest Income After Provision 513,656 481,400 6.7
---------- ---------- -----
Non-Interest Income:
Electronic Payment Processing Services 519,906 450,970 15.3
Other Transaction Processing Services Revenue 81,735 81,097 0.8
Service Charges on Deposits 77,877 69,512 12.0
Fees For Trust Services 21,925 21,295 3.0
Brokerage Revenue 15,108 13,605 11.0
Mortgage Banking Income 51,991 27,986 85.8
Credit Card Fees 19,117 16,609 15.1
Securities Gains (Losses) 1,336 2,606 (48.7)
Other Fee Income 17,335 14,792 17.2
Other Non-Interest Income 38,557 36,668 5.2
---------- ---------- -----
Non-Interest Income before Reimbursable Items
and Impairment Loss on Private Equity Investment 844,887 735,140 14.9
Reimbursable Items 168,852 173,495 (2.7)
Impairment Loss on Private Equity Investment -- (8,355) N/A
---------- ---------- -----
Total Non-Interest Income 1,013,739 900,280 12.6
---------- ---------- -----
Non-Interest Expense:
Personnel Expense 505,091 443,839 13.8
Occupancy & Equipment Expense 208,872 181,833 14.9
Other Non-Interest Expense 174,538 159,018 9.8
---------- ---------- -----
Non-Interest Expense before Reimbursable Items 888,501 784,690 13.2
Reimbursable Items 168,852 173,495 (2.7)
---------- ---------- -----
Total Non-Interest Expense 1,057,353 958,185 10.3
---------- ---------- -----
Minority Interest in Consolidated Subsidiaries 19,453 16,967 14.7
Income Before Taxes 450,589 406,528 10.8
Income Tax Expense 164,303 145,609 12.8
---------- ---------- -----
Net Income $ 286,286 260,919 9.7
========== ========== =====
Basic Earnings Per Share 0.95 0.88 7.7
Diluted Earnings Per Share 0.94 0.87 8.4
Dividends Declared Per Share 0.50 0.44 11.9
Return on Assets 1.89% 2.05 (16)bp
Return on Equity 17.80 19.34 (154)
Average Shares Outstanding - Basic 302,067 296,387 1.9%
Average Shares Outstanding - Diluted 304,574 300,816 1.2
bp - change is measured as difference in basis points.
4 of 8
SYNOVUS
INCOME STATEMENT
(In thousands, except per share data)
2003 2002 3rd Quarter
------------------------------------------------------------- -----------
Third Second First Fourth Third '03 vs. '02
Quarter Quarter Quarter Quarter Quarter Change
-------- -------- -------- -------- -------- -----------
Interest Income (Taxable Equivalent) $268,079 272,595 261,627 271,016 270,997 (1.1)%
Interest Expense 73,135 79,805 78,174 82,539 86,205 (15.2)
-------- -------- -------- -------- -------- ----
Net Interest Income (Taxable Equivalent) 194,944 192,790 183,453 188,477 184,792 5.5
Tax Equivalent Adjustment 1,831 1,853 1,870 1,870 1,853 (1.2)
-------- -------- -------- -------- -------- ----
Net Interest Income 193,113 190,937 181,583 186,607 182,939 5.6
Provision for Loan Losses 15,108 16,565 20,304 15,830 16,410 (7.9)
-------- -------- -------- -------- -------- ----
Net Interest Income After Provision 178,005 174,372 161,279 170,777 166,529 6.9
-------- -------- -------- -------- -------- ----
Non-Interest Income:
Electronic Payment Processing Services 177,580 175,698 166,628 161,845 156,470 13.5
Other Transaction Processing Services Revenue 30,927 25,755 25,053 24,990 25,451 21.5
Service Charges on Deposits 26,710 26,484 24,683 24,457 24,281 10.0
Fees For Trust Services 7,189 8,084 6,652 6,774 6,928 3.8
Brokerage Revenue 5,338 4,833 4,937 5,235 4,372 22.1
Mortgage Banking Income 18,021 18,282 15,688 13,337 10,793 67.0
Credit Card Fees 7,110 6,297 5,710 5,860 6,010 18.3
Securities Gains (Losses) 755 521 60 32 717 5.3
Other Fee Income 6,039 5,571 5,725 5,702 5,254 14.9
Other Non-Interest Income 11,776 15,136 11,645 28,708 14,796 (20.4)
-------- -------- -------- -------- -------- ----
Non-Interest Income before Reimbursable Items 291,445 286,661 266,781 276,940 255,072 14.3
Reimbursable Items 55,740 54,638 58,474 57,604 56,473 (1.3)
-------- -------- -------- -------- -------- ----
Total Non-Interest Income 347,185 341,299 325,255 334,544 311,545 11.4
-------- -------- -------- -------- -------- ----
Non-Interest Expense:
Personnel Expense 171,525 174,925 158,641 164,026 162,209 5.7
Occupancy & Equipment Expense 70,289 69,046 69,537 62,343 62,327 12.8
Other Non-Interest Expense 63,134 58,065 53,339 57,314 46,956 34.5
-------- -------- -------- -------- -------- ----
Non-Interest Expense before Reimbursable Items 304,948 302,036 281,517 283,683 271,492 12.3
Reimbursable Items 55,740 54,638 58,474 57,604 56,473 (1.3)
-------- -------- -------- -------- -------- ----
Total Non-Interest Expense 360,688 356,674 339,991 341,287 327,965 10.0
-------- -------- -------- -------- -------- ----
Minority Interest in Consolidated Subsidiaries 6,780 6,529 6,144 6,682 6,254 8.4
Income Before Taxes 157,722 152,468 140,399 157,352 143,855 9.6
Income Tax Expense 57,722 56,101 50,480 52,924 51,583 11.9
-------- -------- -------- -------- -------- ----
Net Income $100,000 96,367 89,919 104,428 92,272 8.4
======== ======== ======== ======== ======== ====
Basic Earnings Per Share 0.33 0.32 0.30 0.35 0.31 7.4
Diluted Earnings Per Share 0.33 0.32 0.30 0.35 0.31 7.5
Dividends Declared Per Share 0.17 0.17 0.17 0.15 0.15 11.9
Return on Assets 1.91% 1.88 1.89 2.23 2.06 (15)bp
Return on Equity 18.32 17.81 17.26 20.64 19.12 (80)
Average Shares Outstanding - Basic 301,366 302,776 302,067 300,108 298,564 0.9%
Average Shares Outstanding - Diluted 304,514 305,015 304,002 302,330 301,986 0.8
bp - change is measured as difference in basis points.
5 of 8
SYNOVUS
BALANCE SHEET
(In thousands, except share data)
------------------ ----------------- ------------------
September 30, 2003 December 31, 2002 September 30, 2002
------------------ ----------------- ------------------
ASSETS
Cash and due from banks $ 706,029 741,092 651,852
Interest earning deposits with banks 4,426 5,055 3,971
Federal funds sold and securities purchased
under resale agreements 138,448 92,709 97,676
Mortgage loans held for sale 238,986 245,858 237,624
Investment securities available for sale 2,431,951 2,237,725 2,162,135
Loans, net of unearned income 15,918,573 14,463,909 14,058,387
Allowance for loan losses (223,461) (199,841) (194,005)
------------ ------------ ------------
Loans, net 15,695,112 14,264,068 13,864,382
------------ ------------ ------------
Premises and equipment, net 776,848 616,355 605,400
Contract acquisition costs and computer software, net 340,078 324,026 304,196
Goodwill, net 248,870 99,108 42,490
Other intangible assets, net 38,992 19,398 79,389
Other assets 403,654 390,852 461,100
------------ ------------ ------------
Total assets $ 21,023,394 19,036,246 18,510,215
============ ============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing $ 2,800,637 2,303,375 2,204,906
Interest bearing 12,723,450 11,625,459 11,439,551
------------ ------------ ------------
Total deposits 15,524,087 13,928,834 13,644,457
Federal funds purchased and securities sold
under repurchase agreements 1,115,984 1,275,084 1,114,705
Long-term debt 1,684,798 1,336,200 1,294,091
Billings in excess of cost on uncompleted contracts 24,074 -- --
Other liabilities 365,213 338,176 382,834
------------ ------------ ------------
Total liabilities 18,714,156 16,878,294 16,436,087
------------ ------------ ------------
Minority interest in consolidated subsidiaries 133,432 117,099 114,874
Shareholders' equity:
Common stock, par value $1.00 a share (1) 307,055 300,573 299,879
Surplus 422,615 305,718 284,674
Treasury stock (2) (112,738) (1,285) (1,285)
Unearned compensation (306) (146) (168)
Accumulated other comprehensive income 32,873 46,113 46,341
Retained earnings 1,526,307 1,389,880 1,329,813
------------ ------------ ------------
Total shareholders' equity 2,175,806 2,040,853 1,959,254
------------ ------------ ------------
Total liabilities and shareholders' equity $ 21,023,394 19,036,246 18,510,215
============ ============ ============
(1) Common shares outstanding: 301,441,645; 300,397,763; and 299,703,639
at September 30, 2003, December 31, 2002, and September 30, 2002,
respectively.
(2) Treasury shares: 5,612,964 at September 30, 2003 and 175,264 at
December 31, 2002 and September 30, 2002, respectively.
6 of 8
SYNOVUS
AVERAGE BALANCES AND YIELDS/RATES
(Dollars in thousands)
2003 2002
-------------------------------------------------------------------------------------
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter
------------ ---------- ---------- ---------- ----------
Interest Earning Assets
- -----------------------
Taxable Investment Securities $ 2,067,538 2,042,255 1,950,469 1,858,539 1,839,291
Yield 3.73% 4.15 4.66 5.16 5.60
Tax-Exempt Investment Securities $ 233,198 239,136 235,895 236,213 232,633
Yield 7.13% 7.11 7.40 7.39 7.36
Commercial Loans $ 13,081,909 12,934,397 12,201,561 11,553,371 10,920,539
Yield 5.84% 6.03 6.09 6.41 6.65
Consumer Loans $ 1,068,485 1,102,649 1,122,468 1,186,842 1,219,363
Yield 8.29% 8.43 8.37 8.58 8.85
Mortgage Loans $ 810,525 809,684 806,323 827,281 852,940
Yield 6.21% 6.39 6.55 6.74 6.98
Credit Card Loans $ 229,271 228,463 234,667 230,120 225,366
Yield 9.04% 9.17 9.22 9.85 10.27
Home Equity Loans $ 619,826 586,162 535,960 491,003 438,069
Yield 4.58% 4.76 4.81 5.08 5.31
Allowance for Loan Losses $ (224,360) (221,595) (208,816) (198,745) (187,768)
------------ ---------- ---------- ---------- ----------
Loans, Net $ 15,585,656 15,439,760 14,692,163 14,089,872 13,468,509
Yield 6.10% 6.30 6.38 6.71 6.98
Mortgage Loans Held for Sale $ 343,069 308,262 229,545 265,847 209,780
Yield 5.04% 5.19 5.57 5.81 6.39
Federal Funds Sold $ 109,652 126,033 98,009 89,806 72,161
Yield 1.31% 1.40 1.65 1.78 2.01
Time Deposits with Banks $ 4,500 4,492 4,642 4,110 4,122
Yield 0.47% 0.62 0.70 1.02 1.26
Total Interest Earning Assets $ 18,343,613 18,159,938 17,210,723 16,544,387 15,826,496
Yield 5.80% 6.02 6.15 6.51 6.80
Interest Bearing Liabilities
- ----------------------------
Time Deposits Over $100,000 $ 3,471,693 3,553,764 3,322,485 3,202,688 3,109,639
Rate 2.67% 2.82 2.99 3.21 3.41
Time Deposits Under $100,000 $ 2,407,719 2,481,680 2,397,058 2,403,692 2,425,038
Rate 2.51% 2.70 2.97 3.18 3.39
Other Interest Bearing Deposits $ 6,873,110 6,679,868 6,174,605 5,940,073 5,608,037
Rate 0.80% 0.99 1.03 1.19 1.37
Federal Funds Purchased and Other
Short-Term Borrowings $ 1,020,042 987,860 1,221,637 1,162,710 1,040,793
Rate 0.97% 1.13 1.23 1.47 1.67
Long-Term Debt $ 1,698,311 1,770,532 1,511,398 1,286,049 1,232,646
Rate 4.17% 4.23 4.43 4.62 4.76
Total Interest Bearing Liabilities $ 15,470,875 15,473,704 14,627,183 13,995,212 13,416,153
Rate 1.87% 2.06 2.16 2.34 2.54
Non-Interest Bearing Demand Deposits $ 2,669,500 2,435,395 2,178,503 2,115,910 2,031,031
Shareholders' Equity $ 2,165,657 2,170,881 2,112,620 2,007,679 1,914,915
Total Assets $ 20,760,836 20,513,161 19,326,396 18,542,637 17,743,648
Spread 3.93% 3.95 3.99 4.17 4.25
Net Interest Margin 4.22% 4.25 4.31 4.53 4.64
7 of 8
Synovus
LOANS OUTSTANDING AND NONPERFORMING LOANS COMPOSITION
(Dollars in thousands)
September 30, 2003
----------------------------------------------------------------------------------
Loans as a % Total Total %
of Total Loans Nonperforming Nonperforming
Loan Type Total Loans Outstanding Loans Loans
------------------------------------------- ----------------------- ------------------ --------------------- ----------------
Multi-Family $ 439,684 2.8% $ 4,348 4.6%
Hotels 655,904 4.1 7,938 8.5
Office Buildings 654,849 4.1 1,545 1.7
Shopping Centers 511,322 3.2 850 0.9
Commercial Development 441,494 2.8 11,674 12.5
----------------------- ------------------ ---------------- --------------
Investment Properties 2,703,253 17.0 26,355 28.1
1-4 Family Construction 784,272 4.8 2,242 2.4
1-4 Family Perm / Mini-Perm 650,246 4.1 3,117 3.3
Residential Development 747,094 4.7 1,742 1.9
----------------------- ------------------ ---------------- --------------
1-4 Family Properties 2,181,612 13.6 7,101 7.6
Land Acquisition 629,931 4.0 209 0.2
----------------------- ------------------ ---------------- --------------
Total Investment-Related R/E 5,514,796 34.6 33,665 35.9
Owner-Occupied 1,856,783 11.7 4,960 5.3
Other Property 1,235,365 7.8 3,724 4.0
----------------------- ------------------ ---------------- --------------
Total Commercial Real Estate 8,606,944 54.1 42,349 45.2
Commercial & Industrial Loans 4,582,781 28.8 43,776 46.8
Consumer Loans 2,758,284 17.3 7,508 8.0
Unearned Income (29,436) (0.2)
----------------------- ------------------ ---------------- --------------
Total Loans $ 15,918,573 100.0% $ 93,633 100.0%
======================= ================== ================ ==============
8 of 8
SYNOVUS
CREDIT QUALITY DATA
(Dollars in thousands)
2003 2002 3rd Quarter
--------------------------------------------------------------- -----------
Third Second First Fourth Third '03 vs. '02
Quarter Quarter Quarter Quarter Quarter Change
-------- ------- ------- ------- ------- -----------
Nonperforming Loans $ 93,633 86,440 79,718 66,736 57,069 64.1%
Other Real Estate 22,842 29,709 31,991 26,517 25,860 (11.7)
Nonperforming Assets 116,475 116,149 111,709 93,253 82,929 40.5
Allowance for Loan Losses 223,461 220,978 216,989 199,841 194,005 15.2
Net Charge-Offs - Quarter 12,626 12,577 13,689 9,804 10,884 16.0
Net Charge-Offs - YTD 38,891 26,266 13,689 44,223 34,419 13.0
Net Charge-Offs/Average Loans - Quarter 0.32 0.32 0.37 0.27 0.32
Net Charge-Offs/Average Loans - YTD 0.34 0.34 0.37 0.33 0.35
Nonperforming Loans/Loans & ORE 0.59 0.55 0.51 0.46 0.41
Nonperforming Assets/Loans & ORE 0.73 0.73 0.72 0.64 0.59
Allowance/Loans 1.40 1.40 1.40 1.38 1.38
Allowance/Nonperforming Loans 238.66 255.64 272.20 299.45 339.95
Allowance/Nonperforming Assets 191.85 190.25 194.25 214.30 233.94
Past Due Loans over 90 days 23,254 31,675 24,771 30,192 26,632
As a Percentage of Loans Outstanding 0.15 0.20 0.16 0.21 0.19
Total Past Dues 111,269 146,197 160,151 102,105 122,640
As a Percentage of Loans Outstanding 0.70 0.92 1.03 0.70 0.87
- ----------------------------------------------------------------------------------------------------------------------------
REGULATORY CAPITAL RATIOS (1)
(Dollars in thousands)
------------------------ ------------------- ----------------------
September 30, 2003 December 31, 2002 September 30, 2002
------------------------ ------------------- ----------------------
Tier 1 Capital $ 2,011,816 1,994,654 1,902,597
Total Risk-Based Capital 2,535,277 2,195,652 2,105,610
Tier 1 Capital Ratio 10.30 % 11.38 11.31
Total Risk-Based Capital Ratio 12.97 12.53 12.52
Leverage Ratio 9.84 10.86 10.84
(1) September 30, 2003 information is preliminary.
- ----------------------------------------------------------------------------------------------------------------------------