-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DLC7UpAt8UTSnuxITzrNeMvJFBtHF6SjM0zwE3ugvxORX62Xo/3zTFCXaKJYaHWe W/PIdRCFRDA9XTkBIJuJtA== 0000018349-01-500026.txt : 20010719 0000018349-01-500026.hdr.sgml : 20010719 ACCESSION NUMBER: 0000018349-01-500026 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010718 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010718 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SYNOVUS FINANCIAL CORP CENTRAL INDEX KEY: 0000018349 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 581134883 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-10312 FILM NUMBER: 1683728 BUSINESS ADDRESS: STREET 1: 901 FRONT AVENUE STREET 2: STE 301 CITY: COLUMBUS STATE: GA ZIP: 31901 BUSINESS PHONE: 7066492267 MAIL ADDRESS: STREET 1: P.O.BOX 120 CITY: COLUMBUS STATE: GA ZIP: 31902 FORMER COMPANY: FORMER CONFORMED NAME: CB&T BANCSHARES INC DATE OF NAME CHANGE: 19890912 8-K 1 july8k.txt JULY 18 8K FILING SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 July 18, 2001 ----------------------------- (Earliest Event Reported) Synovus Financial Corp. -------------------------- (Exact Name of Registrant as Specified in its Charter) Georgia 1-10312 58-1134883 - -------------- --------------- --------------- (State of (Commission File (IRS Employer Incorporation) Number) Identification Number) 901 Front Avenue, Suite 301, Columbus, Georgia 31901 ----------------------------------------------------- (Address of principal executive offices) (706) 649-2267 ------------------------------------- (Registrant's Telephone Number) ----------------------------------------------------------- (Former name or former address, if changed since last report) Item 5. Other Events. - ------ ------------- On July 18, 2001, Synovus Financial Corp. ("Registrant") issued a press release with respect to its second quarter 2001 earnings. A copy of Registrant's press release is attached hereto as Exhibit 99 and by this reference is hereby incorporated by reference into this Form 8-K and made a part hereof. Item 7. Financial Statements. Pro Forma Financial Information and Exhibits. - ------- ------------------------------------------------------------------- (a) Financial Statements - None. (b) Pro Forma Financial Information - None. (c) Exhibits 99 - Registrant's press release, July 18, 2001. Signature Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, Registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SYNOVUS FINANCIAL CORP. ("Registrant") Dated: July 18, 2001 By:/s/ Kathleen Moates --------------- -------------------------------- Kathleen Moates Senior Deputy General Counsel EX-99 2 newsrelease.txt NEWS RELEASE [LOGO] SNOVUS FINANCIAL CORP. -------------------------------------------------- NEWS RELEASE -------------------------------------------------- For Immediate Release --------------------- Contact: Patrick A. Reynolds Director of Investor Relations (706) 649-4973 Synovus Financial Corp.(R)Reports 22% Increase in Net Income for Second Quarter Net Income up 20% for First Half of 2001 Core Loan Growth, Fee Income Growth, and Expense Control Drive Profitability Columbus, Ga., July 18, 2001 -- Synovus Financial Corp. (NYSE: "SNV"), the Columbus, Ga.-based multi-financial services company, today announced net income was $75.6 million for the second quarter 2001, up 22%, and $147.5 million for the first six months of 2001, up 20%, compared to $61.8 million and $123.1 million, for the same periods in 2000. Diluted earnings per share were $0.26 for the quarter, up 18% over last year's $0.22. For the first six months of 2001, diluted earnings per share were $0.50, an increase of 16% over $0.43 per share for the same period in 2000. Major contributors to the growth in net income include strong growth in loans and fee income. Expense control management also positively impacted the growth in net income. "We are very pleased to report excellent second quarter results," said James H. Blanchard, Synovus Financial Corp. Chairman and Chief Executive Officer. "Our outstanding loan growth of 15% over last year, coupled with continued strong credit quality, added substantially to our excellent results. Bank fee income increased by 29%, with mortgage revenue leading the way with an 83% increase over last year. Our commitment to controlling our expenses contributed significantly to our excellent results in the quarter." 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. We reiterate our expectations of at least 15% growth in earnings per share in 2001 and to be at the top of the 15-18% range of earnings growth by 2003." Return on assets for the quarter was 2.00% and return on equity was 19.96%, as compared to 1.88% and 19.40%, respectively, for the second quarter 2000. For the first six months, return on assets was 1.98% and return on equity was 20.02% as compared to 1.91% and 19.58%, respectively, in the same period last year. Total assets ended the quarter at $15.7 billion, an increase of 14.4% from the same period last year. Shareholders' equity at June 30, 2001, was $1.551 billion, which represented 9.91% of quarter-end assets. Strong asset quality trends continued during the second quarter. Reflecting the emphasis on high credit quality and credit management, the ratio of nonperforming assets to loans and other real estate was 0.49%, the allowance for loan losses was 1.38% of loans, and net charge-offs were 0.26% of average Synovus Financial Corp.(R) Reports 22% Increase in Net Income for Second Quarter/p.2 loans for the second quarter, all unchanged from the previous quarter. The allowance for loan losses provides coverage of 397% of nonperforming loans. The provision for loan losses covered net charge-offs by 1.76x for the quarter. Synovus banking operations' revenues increased 14% over the same period last year, while net income increased 29% over last year. Return on assets for the quarter was 1.48% and return on equity was 18.74%, compared to 1.31% and 17.14%, respectively, in second quarter of 2000. Net interest income increased by 9% versus the second quarter last year, due to net loan growth of 15% and a net interest margin of 4.61%, up from 4.55% in the previous quarter. Banking operations' non-interest income grew 29%, with increases in mortgage banking of 83%, service charges on deposits of 14%, trust revenues of 29%, credit card fees of 22%, and brokerage revenues of 7% over the same period last year. Creative Financial Group, acquired in the first quarter, added $1.2 million in revenue to Synovus Wealth Management in the second quarter. Total banking operations' non-interest income as a percentage of banking revenues -- excluding securities gains/losses -- was 28.1% in the quarter. G&A expenses for the quarter were up 6.2% over last year. The efficiency ratio for the quarter was 54.4% versus 58.4% for the second quarter 2000. TSYS reported net income of $26.0 million for the second quarter 2001, a 6.7% increase in net income over the same period last year. Revenues for the second quarter were $162.5 million, an increase of 8.0% compared to $150.5 million for the second quarter last year. Excluding revenues attributable to the Citigroup Universal Card Services' (UCS) consumer card portfolio for the second quarter of 2000, pro forma revenues for the second quarter of 2001 increased 15.3% compared to last year. TSYS expects an increase of net income for 2001 over 2000 of approximately 20%, with the third and fourth quarters' net income growing 30% over the same periods in 2000. With TSYS' contribution, Synovus' total non-interest income -- excluding securities gains/losses -- was 60.2% of revenues for the quarter versus 59.2% in the same period last year. Synovus will host an earnings highlights conference call at 4:15 ET, on July 18, 2001. 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 $15.7 billion in assets based in Columbus, Ga. Synovus is composed of 39 banks in Georgia, Alabama, South Carolina and Florida; including pointpathbank.com (www.pointpathbank.com); an 80.8-percent stake in Total System Services, Inc. (NYSE: "TSS") (www.tsys.com), one of the world's leading payment services providers; DotsConnect (www.dotsconnect.com), which provides the e-payments link between buyers and sellers on the Web; 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 and TSYS' expected growth in net income. 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 Synovus Financial Corp.(R)Reports 22% Increase in Net Income for Second Quarter /p. 3 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; 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; 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. Synovus Financial Corp.
INCOME STATEMENT Six Months Ended (Amounts in thousands, except per share data) June 30, --------------------------------------------- 2001 2000 Change --------------------------------------------- Interest Income (Taxable equivalent) .............$ 584,172 522,290 11.8 % Interest Expense ................................. 280,346 240,720 16.5 ----------------------------------------- Net Interest Income (Taxable equivalent) ......... 303,826 281,570 7.9 Tax equivalent adjustment 3,525 3,021 16.7 ----------------------------------------- Net Interest Income .............................. 300,301 278,549 7.8 Provision for Loan Losses ........................ 24,157 23,623 2.3 ----------------------------------------- Net Interest Income After Provision .............. 276,144 254,926 8.3 ----------------------------------------- Non-Interest Income: Data Processing .............................. 310,739 284,692 9.1 Service Charges on Deposits................... 41,205 36,382 13.3 Fees For Trust Services ...................... 12,578 11,009 14.3 Brokerage Revenue ............................ 8,485 8,380 1.3 Mortgage Banking Income ...................... 18,666 9,708 92.3 Credit Card Fees ............................. 9,753 8,280 17.8 Securities Gains (Losses) .................... 846 (28) N/A Other Fee Income.............................. 8,477 6,961 21.8 Other Non-Interest Income .................... 45,969 40,795 12.7 ----------------------------------------- Total Non-Interest Income ........................ 456,718 406,179 12.4 ----------------------------------------- Non-Interest Expense: Personnel Expense ............................. 271,709 248,702 9.3 Occupancy & Equipment Expense ................. 117,815 110,336 6.8 Other Non-Interest Expense .................... 101,655 100,276 1.4 ----------------------------------------- Total Non-Interest Expense ....................... 491,179 459,314 6.9 ----------------------------------------- Minority Interest in Consolidated Subsidiaries.... 9,232 8,625 7.0 Income Before Taxes .............................. 232,451 193,166 20.3 Income Tax Expense ............................... 84,951 70,022 21.3 ----------------------------------------- Net Income ....................................... 147,500 123,144 19.8 ========================================= Basic Earnings per Share ......................... 0.51 0.44 17.2 Diluted Earnings per Share ....................... 0.50 0.43 16.1 Dividends Declared per Share ..................... 0.26 0.22 15.9 Return on Assets ................................. 1.98 1.91 7 bp Return on Equity ................................. 20.02 19.58 44 Average Shares Outstanding - Basic ............... 289,018 282,810 2.2 % Average Shares Outstanding - Diluted ............. 294,741 285,776 3.1
bp - change is measured as difference in basis points. Synovus Financial Corp.
INCOME STATEMENT 2001 2000 2nd Quarter ----------------------------------------------------- ------------ (Amounts in thousands, except per share data) Second First Fourth Third Second '01 vs. '00 Quarter Quarter Quarter Quarter Quarter Change ----------------------------------------------------- ------------ Interest Income (Taxable equivalent) ..............$ 289,867 294,305 296,527 285,035 270,531 7.1 % Interest Expense .................................. 134,146 146,200 151,430 143,323 127,420 5.3 --------------------------------------------------- ------------ Net Interest Income (Taxable equivalent) .......... 155,721 148,105 145,097 141,712 143,111 8.8 Tax equivalent adjustment.......................... 1,833 1,692 1,555 1,471 1,531 19.7 --------------------------------------------------- ------------ Net Interest Income ............................... 153,888 146,413 143,542 140,241 141,580 8.7 Provision for Loan Losses ......................... 13,170 10,987 11,096 9,622 12,712 3.6 --------------------------------------------------- ------------ Net Interest Income After Provision ............... 140,718 135,426 132,446 130,619 128,868 9.2 --------------------------------------------------- ------------ Non-Interest Income: Data Processing ............................... 160,437 150,302 149,611 146,665 145,676 10.1 Service Charges on Deposits.................... 21,168 20,037 20,288 19,331 18,579 13.9 Fees For Trust Services ....................... 6,788 5,790 5,649 5,546 5,250 29.3 Brokerage Revenue ............................. 4,159 4,326 4,242 3,441 3,883 7.1 Mortgage Banking Income ....................... 10,197 8,469 6,146 5,887 5,562 83.3 Credit Card Fees .............................. 5,341 4,412 5,971 4,878 4,362 22.4 Securities Gains (Losses) ..................... 428 418 711 98 (27) N/A Other Fee Income............................... 4,140 4,337 4,335 3,813 3,485 18.8 Other Non-Interest Income ..................... 20,080 25,889 26,082 14,640 18,793 6.8 --------------------------------------------------- ------------ Total Non-Interest Income ......................... 232,738 223,980 223,035 204,299 205,563 13.2 --------------------------------------------------- ------------ Non-Interest Expense: Personnel Expense .............................. 137,441 134,268 121,658 125,117 124,817 10.1 Occupancy & Equipment Expense .................. 60,541 57,274 60,945 54,394 56,537 7.1 Other Non-Interest Expense ..................... 51,061 50,594 51,598 50,248 51,084 (0.0) --------------------------------------------------- ------------ Total Non-Interest Expense ........................ 249,043 242,136 234,201 229,759 232,438 7.1 --------------------------------------------------- ------------ Minority Interest in Consolidated Subsidiaries..... 5,027 4,205 4,178 3,692 4,664 7.8 Income Before Taxes ............................... 119,386 113,065 117,102 101,467 97,329 22.7 Income Tax Expense ................................ 43,771 41,180 42,420 36,736 35,577 23.0 --------------------------------------------------- ------------ Net Income ........................................ 75,615 71,885 74,682 64,731 61,752 22.4 =================================================== ============ Basic Earnings per Share .......................... 0.26 0.25 0.26 0.23 0.22 19.6 Diluted Earnings per Share ........................ 0.26 0.25 0.26 0.23 0.22 18.5 Dividends Declared per Share ...................... 0.13 0.13 0.11 0.11 0.11 15.9 Return on Assets .................................. 2.00 % 1.97 % 2.09 % 1.87 % 1.88 % 12 bp Return on Equity .................................. 19.96 20.08 21.75 19.54 19.40 56 Average Shares Outstanding - Basic ................ 290,315 287,707 284,423 284,149 283,457 2.4 % Average Shares Outstanding - Diluted .............. 296,218 293,248 288,559 287,392 286,605 3.4
bp - change is measured as difference in basis points. Synovus Financial Corp.
SELECTED BALANCE SHEET DATA 2001 2000 2nd Quarter ------------------------------------------------------------------ ------------- (Amounts in thousands, except per share data) Second First Fourth Third Second '01 vs. '00 Quarter Quarter Quarter Quarter Quarter Change ------------------------------------------------------------------ ------------- Total Assets....................................$ 15,654,130 15,181,807 14,908,092 14,105,157 13,685,928 14.4 % Investment Securities........................... 2,065,125 2,063,315 2,077,928 2,044,152 2,029,580 1.8 Loans (net of unearned income).................. 11,604,690 11,155,864 10,751,887 10,454,999 10,071,234 15.2 Total Deposits.................................. 11,561,515 11,487,328 11,161,710 10,423,641 10,132,131 14.1 Demand Deposits............................. 1,822,591 1,725,783 1,726,817 1,592,184 1,678,714 8.6 Certificates of Deposit..................... 5,238,816 5,368,835 5,132,065 4,980,595 4,685,702 11.8 Savings Accounts............................ 420,520 423,292 404,806 430,961 441,288 (4.7) NOW Accounts................................ 1,717,637 1,638,446 1,749,971 1,431,054 1,424,644 20.6 Money Market................................ 2,361,951 2,330,972 2,148,051 1,988,847 1,901,783 24.2 Shareholders' Equity........................... 1,550,559 1,501,444 1,417,171 1,343,540 1,294,165 19.8 Book Value Per Share............................ 5.34 5.18 4.98 4.73 4.56 17.1 Equity to Assets................................ 9.91 9.89 9.51 9.53 9.46 45 bp Loan to Deposit Ratio........................... 100.37 97.11 96.33 100.30 99.40 97 Demand Deposits / Total Deposits................ 15.76 15.02 15.47 15.27 16.57 (81) Common Shares Outstanding ...................... 290,615 289,766 284,643 284,179 284,086 2.3 %
CREDIT QUALITY DATA 2001 2000 2nd Quarter ---------------------------------------------------------------- -------------- (Dollars in thousands) Second First Fourth Third Second '01 vs. '00 Quarter Quarter Quarter Quarter Quarter Change ---------------------------------------------------------------- -------------- Nonperforming Loans............................$ 40,168 42,221 41,709 45,974 39,632 1.4 % Other Real Estate............................... 16,458 12,309 13,898 9,408 7,839 110.0 Nonperforming Assets........................... 56,626 54,530 55,607 55,382 47,471 19.3 Allowance for Loan Losses....................... 159,600 153,916 147,867 143,974 140,539 13.6 Net Charge-Offs - Quarter..................... 7,486 7,198 7,203 6,187 6,208 20.6 Net Charge-Offs - YTD......................... 14,684 7,198 24,032 16,829 10,642 38.0 Net Charge-Offs / Average Loans - Quarter..... 0.26 0.26 0.27 0.24 0.25 1 bp Net Charge-Offs / Average Loans - YTD......... 0.26 0.26 0.24 0.23 0.22 4 Nonperforming Loans / Loans & ORE............... 0.35 0.38 0.39 0.44 0.39 (4) Nonperforming Assets / Loans & ORE.............. 0.49 0.49 0.52 0.53 0.47 2 Allowance / Loans............................... 1.38 1.38 1.38 1.38 1.40 (2) Allowance / Nonperforming Loans................. 397.33 364.55 354.52 313.17 354.61 4,272 Allowance / Nonperforming Assets................ 281.85 282.26 265.91 259.97 296.05 (1,420)
bp - change is measured as difference in basis points.
Synovus Financial Corp. AVERAGE BALANCES AND YIELDS/RATES (Amounts in thousands) ----------------------------------------------------------------------------- 2001 2000 ----------------------------------------------------------------------------- Second First Fourth Third Second Quarter Quarter Quarter Quarter Quarter - ------------------------------------------------------------------------------------------------------------------------------------ Interest Earning Assets - ------------------------ Investment Securities............................ $ 2,023,000 2,019,418 2,066,747 2,076,443 2,079,584 Yield......................................... 6.38 % 6.49 6.44 6.39 6.33 Loans, Net....................................... $ 11,183,502 10,875,712 10,481,789 10,077,078 9,630,646 Yield......................................... 9.05 % 9.58 9.84 9.79 9.78 Mortgage Loans Held for Sale..................... $ 204,998 143,613 107,266 119,377 100,498 Yield......................................... 7.36 % 7.43 7.93 8.12 8.04 Federal Funds Sold............................... $ 105,411 116,245 100,231 88,095 75,888 Yield......................................... 4.61 % 5.90 6.73 6.89 6.42 Time Deposits with Banks ........................ $ 6,234 5,598 3,315 2,437 1,004 Yield......................................... 5.40 % 5.05 6.88 9.80 8.85 - ----------------------------------------------------------------------------------------------------------------------------------- Total Interest Earning Assets.................... $ 13,523,145 13,160,586 12,759,348 12,363,430 11,887,620 Yield......................................... 8.59 % 9.05 9.25 9.18 9.14 - ----------------------------------------------------------------------------------------------------------------------------------- Interest Bearing Liabilities - ----------------------------- Time Deposits Over $100,000...................... $ 2,651,781 2,655,281 2,541,805 2,409,826 2,052,892 Rate.......................................... 5.86 % 6.45 6.62 6.47 6.08 Time Deposits Under $100,000..................... $ 2,653,134 2,653,402 2,553,801 2,498,105 2,462,291 Rate.......................................... 5.94 % 6.19 6.15 5.92 5.60 Other Interest Bearing Deposits.................. $ 4,310,544 4,159,123 3,942,170 3,767,410 3,716,475 Rate.......................................... 2.88 % 3.55 3.90 3.82 3.60 Federal Funds Purchased.......................... $ 1,084,710 939,064 1,163,725 1,188,934 1,311,583 Rate.......................................... 4.23 % 5.59 6.48 6.42 6.18 Other Short-Term Borrowings...................... $ 6,530 8,687 6,935 8,991 10,614 Rate.......................................... 3.97 % 5.14 6.43 5.48 6.11 Other Borrowings................................. $ 884,027 867,715 719,639 660,351 532,531 Rate.......................................... 6.14 % 6.38 6.33 6.60 6.09 - ----------------------------------------------------------------------------------------------------------------------------------- Total Interest Bearing Liabilities............... $ 11,590,726 11,283,272 10,928,075 10,533,617 10,086,386 Rate.......................................... 4.63 % 5.24 5.49 5.39 5.06 - ----------------------------------------------------------------------------------------------------------------------------------- Non-Interest Bearing Demand Deposits............. $ 1,691,382 1,634,027 1,562,935 1,569,023 1,588,252 Shareholders' Equity............................. $ 1,519,296 1,451,560 1,365,732 1,317,936 1,280,135 Total Assets..................................... $ 15,194,239 14,792,026 14,224,874 13,736,068 13,220,498 - ----------------------------------------------------------------------------------------------------------------------------------- Spread 3.96 % 3.81 3.76 3.79 4.08 Net Interest Margin 4.61 % 4.55 4.53 4.57 4.83 - -----------------------------------------------------------------------------------------------------------------------------------
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