0000018349-01-500044.txt : 20011019 0000018349-01-500044.hdr.sgml : 20011019 ACCESSION NUMBER: 0000018349-01-500044 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20011017 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20011017 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: 1934 Act SEC FILE NUMBER: 001-10312 FILM NUMBER: 1760794 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 oct8k.htm OCTOBER 17, 2001 8-K 8k.htm

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

October 17, 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 Identification
Incorporation)                          Number) 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 October 17, 2001, Synovus Financial Corp. ("Registrant"), issued a press release with respect to its third 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, October 17, 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: October 17, 2001 By:/s/ Kathleen Moates
  Kathleen Moates
Senior Deputy General Counsel


-

3

 EX-99 3 press.txt PRESS RELEASE 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 22% Increase in Net Income for Third Quarter Net Interest Income and TSYS Income Growth Drive Profitability Columbus, Ga., October 17, 2001 -- Synovus Financial Corp. (NYSE: "SNV"), the Columbus, Ga.-based multi-financial services company, today announced net income was $78.9 million for the third quarter 2001, up 22%, and $226.4 million for the first nine months of 2001, up 20.5%, compared to $64.7 million and $187.9 million, for the same periods in 2000. Diluted earnings per share were $0.27 for the quarter, up 18% over last year's $0.23. For the first nine months of 2001, diluted earnings per share were $0.77, an increase of 17% over $0.66 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 and improving net interest margin also positively impacted the growth in net income. "We are very pleased to report excellent third quarter results," said James H. Blanchard, Synovus Financial Corp. Chairman and Chief Executive Officer. "Our outstanding loan growth of 13% over last year, coupled with continued strong credit quality, added substantially to our excellent results. TSYS increased net income by 33.5% over last year as the recently converted accounts in the United Kingdom and Ireland came on line in the quarter. Bank fee income increased by 22%, with mortgage revenue leading the way with a 52% 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 and the upcoming holiday shopping season will support our earnings per share growth targets. Considering these factors, we currently continue our expectation of 15% growth in earnings per share for 2001, and 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 2.02% and return on equity was 19.93%, as compared to 1.87% and 19.54%, respectively, for the third quarter 2000. For the first nine months, return on assets was 2.00% and return on equity was 19.99% as compared to 1.90% and 19.56%, respectively, in the same period last year. Total assets ended the quarter at $15.8 billion, an increase of 11.9% from the same period last year. Shareholders' equity at September 30, 2001, was $1.618 billion, which represented 10.25% of quarter-end assets. Post Office Box 120 / Columbus, GA 31902 www.synovus.com Synovus Financial Corp.(R)Reports 22% Increase in Net Income for Third Quarter/p. 2 Strong asset quality trends continued during the third 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 1.37% of loans, and net charge-offs were 0.28% of average loans for the third quarter, as compared to 0.53%, 1.38%, and 0.24%, respectively, last year. The allowance for loan losses provides coverage of 330% of nonperforming loans. Synovus banking operations' revenues increased 16% over the same period last year, while net income increased 21% over last year. Return on assets for the quarter was 1.54% and return on equity was 19.34%, compared to 1.43% and 19.19%, respectively, in third quarter of 2000. Net interest income increased by 14% versus the third quarter last year, due to net loan growth of 13% and a net interest margin of 4.62%, up from 4.57% in the same period last year. Banking operations' non-interest income grew 22%, with increases in mortgage banking of 52%, service charges on deposits of 9%, trust revenues of 20%, credit card fees of 14%, and brokerage revenues of 12% 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 third quarter. Total banking operations' non-interest income as a percentage of banking revenues -- excluding securities gains/losses -- was 26.8% in the quarter. G&A expenses -- which include annual pay increases effective July 1, 2001 -- were up 6% fundamentally for the quarter over the same period last year. The efficiency ratio for the quarter was 53.3% versus 54.7% for the third quarter 2000. TSYS reported net income of $25.5 million for the third quarter 2001, a 33.5% increase in net income over the same period last year. Revenues for the third quarter were $162.9 million, an increase of 9.4% compared to $149.0 million for the third quarter last year. TSYS expects an increase of net income for 2001 over 2000 of approximately 20%, with the fourth quarters' net income growing in excess of 30% over the same period in 2000. With TSYS' contribution, Synovus' total non-interest income -- excluding securities gains/losses -- was 59.3% of revenues for the quarter. Synovus will host an earnings highlights conference call at 4:15 ET, on October 17, 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 $15.8 billion in assets based in Columbus, Ga. Synovus is composed of 39 banks in Georgia, Alabama, South Carolina and Florida; an 80.8-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 2001, and for 2002 and 2003, TSYS' expected growth in net income for the fourth quarter of 2001 and TSYS' expected growth in net income for 2001. 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 Post Office Box 120 / Columbus, GA 31902 www.synovus.com Synovus Financial Corp.(R) Reports 22% Increase in Net Income for Third Quarter /p. 3 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 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 Nine Months Ended (Amounts in thousands, except per share data) September 30, ------------------------------------------------ 2001 2000 Change ------------------------------------------------ Interest Income (Taxable Equivalent) $ 866,759 807,325 7.4 % Interest Expense 402,381 384,043 4.8 ----------------- ------------- ---------- Net Interest Income (Taxable Equivalent) 464,378 423,282 9.7 Tax Equivalent Adjustment 5,359 4,492 19.3 ----------------- ------------- ---------- Net Interest Income 459,019 418,790 9.6 Provision for Loan Losses 34,956 33,245 5.1 ----------------- ------------- ---------- Net Interest Income After Provision 424,063 385,545 10.0 ----------------- ------------- ---------- Non-Interest Income: Data Processing 474,431 431,356 10.0 Service Charges on Deposits 62,357 55,713 11.9 Fees For Trust Services 19,215 16,555 16.1 Brokerage Revenue 12,343 11,821 4.4 Mortgage Banking Income 27,604 15,595 77.0 Credit Card Fees 15,306 13,158 16.3 Securities Gains (Losses) 1,183 70 1,590.0 Other Fee Income 12,586 10,774 16.8 Other Non-Interest Income 62,852 55,436 13.4 ----------------- ------------- ---------- Total Non-Interest Income 687,877 610,478 12.7 ----------------- ------------- ---------- Non-Interest Expense: Personnel Expense 413,164 373,819 10.5 Occupancy & Equipment Expense 175,903 164,730 6.8 Other Non-Interest Expense 152,366 150,524 1.2 ----------------- ------------- ---------- Total Non-Interest Expense 741,433 689,073 7.6 ----------------- ------------- ---------- Minority Interest in Consolidated Subsidiaries 14,208 12,317 15.4 Income Before Taxes 356,299 294,633 20.9 Income Tax Expense 129,894 106,758 21.7 ----------------- ------------- ---------- Net Income 226,405 187,875 20.5 ================= ============= ========== Basic Earnings Per Share 0.78 0.66 17.9 Diluted Earnings Per Share 0.77 0.66 16.7 Dividends Declared Per Share 0.38 0.33 15.9 Return on Assets 2.00 1.90 10 bp Return on Equity 19.99 19.56 43 Average Shares Outstanding - Basic 289,642 283,260 2.3 % Average Shares Outstanding - Diluted 295,623 286,319 3.2 bp - change is measured as difference in basis points.
Synovus Financial Corp.
INCOME STATEMENT (Amounts in thousands, 2001 2000 3rd Quarter except per share data) ---------------------------------------------------------------------- ------------ Third Second First Fourth Third '01 vs. '00 Quarter Quarter Quarter Quarter Quarter Change ---------------------------------------------------------------------- ------------ Interest Income (Taxable Equivalent) $ 282,587 289,867 294,305 296,527 285,035 (0.9)% Interest Expense 122,035 134,146 146,200 151,430 143,323 (14.9) ------------- ------------- --------------- ------------ ----------- ------------ Net Interest Income (Taxable Equivalent) 160,552 155,721 148,105 145,097 141,712 13.3 Tax Equivalent Adjustment 1,834 1,833 1,692 1,555 1,471 24.7 ------------- ------------- --------------- ------------ ----------- ------------ Net Interest Income 158,718 153,888 146,413 143,542 140,241 13.2 Provision for Loan Losses 10,799 13,170 10,987 11,096 9,622 12.2 ------------- ------------- --------------- ------------ ----------- ------------ Net Interest Income After Provision 147,919 140,718 135,426 132,446 130,619 13.2 ------------- ------------- --------------- ------------ ----------- ------------ Non-Interest Income: Data Processing 163,692 160,437 150,302 149,611 146,665 11.6 Service Charges on Deposits 21,152 21,168 20,037 20,288 19,331 9.4 Fees For Trust Services 6,637 6,788 5,790 5,649 5,546 19.7 Brokerage Revenue 3,858 4,159 4,326 4,242 3,441 12.1 Mortgage Banking Income 8,938 10,197 8,469 6,146 5,887 51.8 Credit Card Fees 5,553 5,341 4,412 5,971 4,878 13.8 Securities Gains (Losses) 337 428 418 711 98 243.9 Other Fee Income 4,109 4,140 4,337 4,335 3,813 7.8 Other Non-Interest Income 16,883 20,080 25,889 26,082 14,640 15.3 ------------- ------------- --------------- ------------ ----------- ------------ Total Non-Interest Income 231,159 232,738 223,980 223,035 204,299 13.1 ------------- ------------- --------------- ------------ ----------- ------------ Non-Interest Expense: Personnel Expense 141,455 137,441 134,268 121,658 125,117 13.1 Occupancy & Equipment Expense 58,088 60,541 57,274 60,945 54,394 6.8 Other Non-Interest Expense 50,711 51,061 50,594 51,598 50,248 0.9 ------------- ------------- --------------- ------------ ----------- ------------ Total Non-Interest Expense 250,254 249,043 242,136 234,201 229,759 8.9 ------------- ------------- --------------- ------------ ----------- ------------ Minority Interest in Consolidated Subsidiaries 4,976 5,027 4,205 4,178 3,692 34.8 Income Before Taxes 123,848 119,386 113,065 117,102 101,467 22.1 Income Tax Expense 44,943 43,771 41,180 42,420 36,736 22.3 ------------- ------------- --------------- ------------ ----------- ------------ Net Income 78,905 75,615 71,885 74,682 64,731 21.9 ============ ============= =============== ============ =========== ============ Basic Earnings Per Share 0.27 0.26 0.25 0.26 0.23 19.1 Diluted Earnings Per Share 0.27 0.26 0.25 0.26 0.23 17.9 Dividends Declared Per Share 0.13 0.13 0.13 0.11 0.11 15.9 Return on Assets 2.02 % 2.00 % 1.97 % 2.09 % 1.87 % 15 bp Return on Equity 19.93 19.96 20.08 21.75 19.54 39 Average Shares Outstanding - Basic 290,868 290,315 287,707 284,423 284,149 2.4 % Average Shares Outstanding - Diluted 297,357 296,218 293,248 288,559 287,392 3.5
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 3rd Quarter ---------------------------------------------------------------------------- ----------- Third Second First Fourth Third '01 vs. '00 Quarter Quarter Quarter Quarter Quarter Change ---------------------------------------------------------------------------- ----------- Total Assets $ 15,781,130 15,654,130 15,181,807 14,908,092 14,105,157 11.9 % Investment Securities 2,087,135 2,065,125 2,063,315 2,077,928 2,044,152 2.1 Loans (net of unearned income) 11,852,572 11,604,690 11,155,864 10,751,887 10,454,999 13.4 Total Deposits 11,525,774 11,561,515 11,487,328 11,161,710 10,423,641 10.6 Demand Deposits 1,750,644 1,822,591 1,725,783 1,726,817 1,592,184 10.0 Certificates of Deposit 5,200,227 5,238,816 5,368,835 5,132,065 4,980,595 4.4 Savings Accounts 422,393 420,520 423,292 404,806 430,961 (2.0) NOW Accounts 1,677,840 1,717,637 1,638,446 1,749,971 1,431,054 17.2 Money Market 2,474,670 2,361,951 2,330,972 2,148,051 1,988,847 24.4 Shareholders' Equity 1,618,271 1,550,559 1,501,444 1,417,171 1,343,540 20.4 Book Value Per Share 5.56 5.34 5.18 4.98 4.73 17.5 Equity to Assets 10.25 9.91 9.89 9.51 9.53 72 bp Loan to Deposit Ratio 102.84 100.37 97.11 96.33 100.30 254 Demand Deposits / Total Deposits 15.19 15.76 15.02 15.47 15.27 (8) Common Shares Outstanding 291,057 290,615 289,766 284,643 284,179 2.4 %
CREDIT QUALITY DATA (Dollars in thousands)
2001 2000 3rd Quarter ---------------------------------------------------------------------------- ------------- Third Second First Fourth Third '01 vs.'00 Quarter Quarter Quarter Quarter Quarter Change ---------------------------------------------------------------------------- ------------- Nonperforming Loans 49,197 40,168 42,221 41,709 45,974 7.0 % Other Real Estate 14,720 16,458 12,309 13,898 9,408 56.5 Nonperforming Assets 63,917 56,626 54,530 55,607 55,382 15.4 Allowance for Loan Losses 162,117 159,600 153,916 147,867 143,974 12.6 Net Charge-Offs - Quarter 8,280 7,486 7,198 7,203 6,187 33.8 Net Charge-Offs - YTD 22,965 14,684 7,198 24,032 16,829 36.5 Net Charge-Offs/Average Loans-Quarter 0.28 0.26 0.26 0.27 0.24 4 bp Net Charge-Offs/Average Loans-YTD 0.27 0.26 0.26 0.24 0.23 4 Nonperforming Loans / Loans & ORE 0.42 0.35 0.38 0.39 0.44 (2) Nonperforming Assets / Loans & ORE 0.54 0.49 0.49 0.52 0.53 1 Allowance / Loans 1.37 1.38 1.38 1.38 1.38 (1) Allowance / Nonperforming Loans 329.52 397.33 364.55 354.52 313.17 1,635 Allowance / Nonperforming Assets 253.64 281.85 282.26 265.91 259.97 (633)
bp - change is measured as difference in basis points. Synovus Financial Corp. AVERAGE BALANCES AND YIELDS/RATES (Amounts in thousands)
2001 2000 ---------------------------------------------------------------------------------- Third Second First Fourth Third Quarter Quarter Quarter Quarter Quarter ---------------------------------------------------------------------------------- Interest Earning Assets --------------------------------------- Investment Securities $ 2,011,548 2,023,000 2,019,418 2,066,747 2,076,443 Yield 6.34 % 6.38 6.49 6.44 6.39 Loans, Net $ 11,498,072 11,183,502 10,875,712 10,481,789 10,077,078 Yield 8.50 % 9.05 9.58 9.84 9.79 Mortgage Loans Held for Sale $ 181,372 204,998 143,613 107,266 119,377 Yield 7.34 % 7.36 7.43 7.93 8.12 Federal Funds Sold $ 110,100 105,411 116,245 100,231 88,095 Yield 3.80 % 4.61 5.90 6.73 6.89 Time Deposits with Banks $ 4,087 6,234 5,598 3,315 2,437 Yield 3.62 % 5.40 5.05 6.88 9.80 ---------------------------------------------------------------------------------------------------------------------------------- Total Interest Earning Assets $ 13,805,179 13,523,145 13,160,586 12,759,348 12,363,430 Yield 8.13 % 8.59 9.05 9.25 9.18 ---------------------------------------------------------------------------------------------------------------------------------- Interest Bearing Liabilities --------------------------------------- Time Deposits Over $100,000 $ 2,583,032 2,651,781 2,655,281 2,541,805 2,409,826 Rate 5.28 % 5.86 6.45 6.62 6.47 Time Deposits Under $100,000 $ 2,602,377 2,653,134 2,653,402 2,553,801 2,498,105 Rate 5.48 % 5.94 6.19 6.15 5.92 Other Interest Bearing Deposits $ 4,459,166 4,310,544 4,159,123 3,942,170 3,767,410 Rate 2.44 % 2.88 3.55 3.90 3.82 Federal Funds Purchased $ 1,207,804 1,084,710 939,064 1,163,725 1,188,934 Rate 3.48 % 4.23 5.59 6.48 6.42 Other Short-Term Borrowings $ 20,228 6,530 8,687 6,935 8,991 Rate 3.24 % 3.97 5.14 6.43 5.48 Other Borrowings $ 923,290 884,027 867,715 719,639 660,351 Rate 5.74 % 6.14 6.38 6.33 6.60 ----------------------------------------------------------------------------------------------------------------------------------- Total Interest Bearing Liabilities $ 11,795,897 11,590,726 11,283,272 10,928,075 10,533,617 Rate 4.10 % 4.63 5.24 5.49 5.39 ----------------------------------------------------------------------------------------------------------------------------------- Non-Interest Bearing Demand Deposits $ 1,693,111 1,691,382 1,634,027 1,562,935 1,569,023 Shareholders' Equity $ 1,570,921 1,519,296 1,451,560 1,365,732 1,317,936 Total Assets $ 15,474,907 15,194,239 14,792,026 14,224,874 13,736,068 ----------------------------------------------------------------------------------------------------------------------------------- Spread 4.03 % 3.96 3.81 3.76 3.79 Net Interest Margin 4.62 % 4.61 4.55 4.53 4.57 -----------------------------------------------------------------------------------------------------------------------------------