-----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, CBqzh/YX5wkE0Lc3UJrvJGRIhAuTjrNkmKNHIgU83eB34X1lPm1RJcB3PplYf2nU Hg3TmUknR7Ce57WGRHgVxw== 0000018349-04-000003.txt : 20040121 0000018349-04-000003.hdr.sgml : 20040121 20040121134732 ACCESSION NUMBER: 0000018349-04-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040121 ITEM INFORMATION: ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040121 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: 04534618 BUSINESS ADDRESS: STREET 1: 901 FRONT AVENUE STREET 2: STE 202 PO BOX 120 CITY: COLUMBUS STATE: GA ZIP: 31901 BUSINESS PHONE: 7066494818 MAIL ADDRESS: STREET 1: 901 FRONT AVE STREET 2: STE 202 PO 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 snv8k.txt SYNOVUS 8-K 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 January 21, 2004 ---------------- Date of Report (Date of 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) (Zip Code) (706) 649-2267 (Registrant's telephone number, including area code) --------------------------------------------- (Former name or former address, if changed since last report) Item 5. Other Events. - ------- ------------ On January 21, 2004, Synovus Financial Corp. ("Registrant") issued a press release with respect to its earnings for the year ended December 31, 2003. A copy of Registrant's press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. Item 7. Financial Statements and Exhibits. - ------ --------------------------------- (c) Exhibits 99.1 - Registrant's press release dated January 21, 2004 (filed for purposes of Items 5 and 12). 99.2 - Supplemental Information prepared for use with the press release (furnished for purposes of Items 9 and 12). Item 9. Regulation FD Disclosure. - ------- ------------------------ Item 12. Results of Operations and Financial Condition. - ------- --------------------------------------------- The following information is furnished pursuant to Item 9, "Regulation FD Disclosure" and Item 12, "Results of Operations and Financial Condition." On January 21, 2004, the Registrant issued a press release and will hold an investor call and webcast to disclose financial results for the year ended December 31, 2003. The Supplemental Information for use at this investor call is furnished herewith as Exhibit 99.2 and incorporated into Item 9 and Item 12 by reference. On January 21, 2004, Registrant issued a press release with respect to its earnings for the year ended December 31, 2003. A copy of Registrant's press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. 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: January 21, 2004 By:/s/ Kathleen Moates ----------------------- -------------------------------- Kathleen Moates Senior Deputy General Counsel EX-99.1 3 newsrelease.txt REGISTRANT'S PRESS RELEASE [LOGO] SYNOVUS NEWS RELEASE For Immediate Release - --------------------- Contact: Patrick A. Reynolds Director of Investor Relations (706) 649-4973 Synovus(R) Reports 6.5% Increase in Net Income for 2003 Financial Services poised for higher earnings performance in 2004 Columbus, Ga., January 21, 2004 -- Synovus' 2003 earnings grew 6.5% over 2002 to a record $389 million, or $1.28 per share Synovus CEO James H. Blanchard announced today. "We achieved our earnings per share growth target for the year with the key drivers of strong loan growth, good credit quality, a stabilizing margin, a great year in the mortgage operation, and a successful year at TSYS" said Blanchard. "Synovus is poised to achieve higher earnings performance during 2004 as the economy improves." Return on assets for 2003 was 1.91% and return on equity was 17.95%, as compared to 2.10% and 19.69%, respectively, for 2002. Shareholders' equity at December 31, 2003, was $2.245 billion, which represented 10.40% of year-end assets. Total assets ended the quarter at $22 billion, an increase of 13.4% from the same period last year. For the fourth quarter, return on assets was 1.94% and return on equity was 18.37% as compared to 2.23% and 20.64%, respectively, for the fourth quarter 2002. Earnings per share for the fourth quarter was $0.34 compared to $0.35 in the same period last year. The fourth quarter of 2002 reflected pretax gains of $15.3 million associated with the sale of four banking locations. Net interest income grew 6.3% over last year as loans grew 13.8%. The fourth quarter margin of 4.26%, up from 4.22% in the third quarter, represented the first margin expansion in seven quarters. The 2003 full year net interest margin was 4.26%. Asset quality improved significantly during the fourth quarter. The ratio of nonperforming assets to loans and other real estate decreased to 0.58% from 0.73% in the third quarter of 2003 and from 0.64% in the fourth quarter of 2002. Additionally, net charge-offs were 0.36% for the full year compared to 0.33% in 2002, and the allowance for loan losses was 1.37% of loans at year end. The allowance for loan losses provides coverage of 335% of nonperforming loans at year end, and the provision for loan losses covered net charge-offs by 1.28x for the full year. Net income for the Synovus Financial Services segment increased 4.3% over last year. Return on assets for 2003 was 1.40% and return on equity was 16.82%. Financial Services' non-interest income, before an impairment loss in a private equity investment recorded in 2002, was up 12% as compared to last year, with increases in service charges on deposits of 14%, mortgage banking income of 42% and credit card fees of 16% over the same period last year. Financial Management Services and insurance revenues increased 8.8% over last year, with trust up 7%, brokerage up 9%, and financial planning/asset management (which consists of Creative Financial Group and GLOBALT, acquired in 2001 and 2002, Post Office Box 120 / Columbus, GA 31902 www.synovus.com Exhibit 99.1 Synovus(R)Reports 6.5% Increase in Net Income for 2003/p. 2 respectively) up 24%. Financial Services' non-interest income as a percentage of Financial Services' revenues -- excluding securities gains/losses -- was 29% for 2003. The efficiency ratio for 2003 was 53.34%, compared to 52.07% last year. With TSYS' contribution, Synovus' total non-interest income -- excluding securities gains/losses and reimbursable items at TSYS -- was 59.9% of revenues for the year. TSYS reported net income of $141 million for 2003, a 12.1% increase in net income and earnings per share over 2002. Earnings per share for the year increased to $0.71, up from $0.64 last year. One of the most significant events for TSYS in 2003 was the beginning of a relationship with Bank One. Based on TSYS' discussions with executive management, after the recent merger announcement regarding J.P. Morgan Chase & Co. and Bank One, TSYS expects to complete the conversion of Bank One's card portfolio to the TS2 platform in the second half of 2004, according to schedule. The impact of certain events in 2003 will persist in 2004: portfolio sales by multiple clients, continued issuer consolidation and pricing concessions for some large clients of TSYS and Vital Processing Services. In addition, the company will continue to build and improve its infrastructure to support future domestic and international growth. Due to these factors, TSYS expects its 2004 earnings per share to increase by 5-7%. TSYS anticipates returning to 10-15% earnings per share growth in 2005. Blanchard concluded, "Synovus has met every challenge in 2003. Our loan portfolio has performed extremely well this year. Overall credit quality is improving and we expect continued improvement in 2004, with net charge-offs of approximately 0.30% for the full year and non-performing assets in the 0.45 - 0.55% range for 2004. Net interest margin has stabilized and our net interest margin model for 2004 is approximately 4.28% for the full year, with no increases in short term rates in 2004. Loan growth strengthened in the fourth quarter after slowing in the first three quarters, and we expect loan growth of 10-12% in 2004. Non-interest income for the Financial Services segment should accelerate more dramatically with the overall improving economy and markets in general. TSYS is actively cultivating potential new clients, diversifying with innovative products and acquisitions, and investing in the opportunities that will position it for sustained, long-term growth. Based on these factors, along with our team members and our strong balance sheet position, we expect earnings per share growth to be within a range of 8 - 10% for 2004." Synovus will host an earnings highlights conference call at 4:30 pm ET, on January 21, 2004. The conference call can be accessed at www.synovus.com. 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. 20 on FORTUNE magazine's list of "The 100 Best Companies To Work For" in 2004. 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 TSYS' expected increase in earnings per share for 2004, TSYS' expected completion of the conversion of the Bank One portfolio in the second half of 2004, TSYS' anticipated growth in earnings per share for 2005, Synovus' expected continued improvement in credit quality in 2004, Synovus' expected loan growth in 2004, and Synovus' expected growth in earnings per share for 2004 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 Post Office Box 120 / Columbus, GA 31902 www.synovus.com Synovus(R) Reports 6.5% Increase in Net Income for 2003/p. 3 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; inflation, interest rate, market and monetary fluctuations; TSYS' earnings per share growth is lower that anticipated; the strength of the United States economy in general and the strength of the local economies in which Synovus conducts operations may be different than expected; 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 EX-99.2 4 snvfinancials.txt SUPPLEMENTAL INFORMATION 4 of 11 Synovus
INCOME STATEMENT Twelve Months Ended (In thousands, except per share data) December 31, ------------------------------------------------------------- 2003 2002 Change ------------------------------------------------------------- Interest Income (Taxable Equivalent) $ 1,068,880 1,062,305 0.6 % Interest Expense 298,428 337,536 (11.6) -------------------- ------------------- ------------- Net Interest Income (Taxable Equivalent) 770,452 724,769 6.3 Tax Equivalent Adjustment 7,388 7,265 1.7 -------------------- ------------------- ------------- Net Interest Income 763,064 717,504 6.3 Provision for Loan Losses 71,777 65,327 9.9 -------------------- ------------------- ------------- Net Interest Income After Provision 691,287 652,177 6.0 -------------------- ------------------- ------------- Non-Interest Income: Electronic Payment Processing Services 702,712 612,817 14.7 Other Transaction Processing Services Revenue 118,795 106,086 12.0 Service Charges on Deposits 107,404 93,969 14.3 Fees For Trust Services 30,009 28,069 6.9 Brokerage Revenue 20,461 18,840 8.6 Mortgage Banking Income 58,633 41,323 41.9 Credit Card Fees 26,044 22,469 15.9 Securities Gains (Losses) 2,491 2,638 (5.6) Other Fee Income 23,682 20,494 15.6 Other Non-Interest Income 53,933 65,373 (17.5) -------------------- ------------------- ------------- Non-Interest Income before Reimbursable Items and Impairment Loss on Private Equity Investment 1,144,164 1,012,078 13.1 Reimbursable Items 225,165 231,099 (2.6) Impairment Loss on Private Equity Investment - (8,355) N/A -------------------- ------------------- ------------- Total Non-Interest Income 1,369,329 1,234,822 10.9 -------------------- ------------------- ------------- Non-Interest Expense: Personnel Expense 672,248 607,865 10.6 Occupancy & Equipment Expense 281,688 244,176 15.4 Other Non-Interest Expense 243,042 216,330 12.3 -------------------- ------------------- ------------- Non-Interest Expense before Reimbursable Items 1,196,978 1,068,371 12.0 Reimbursable Items 225,165 231,099 (2.6) -------------------- ------------------- ------------- Total Non-Interest Expense 1,422,143 1,299,470 9.4 -------------------- ------------------- ------------- Minority Interest in Consolidated Subsidiaries 26,972 23,649 14.1 Income Before Taxes 611,501 563,880 8.4 Income Tax Expense 222,576 198,533 12.1 -------------------- ------------------- ------------- Net Income $ 388,925 365,347 6.5 ==================== =================== ============= Basic Earnings Per Share 1.29 1.23 4.8 Diluted Earnings Per Share 1.28 1.21 5.2 Dividends Declared Per Share 0.66 0.59 11.9 Return on Assets 1.91 % 2.10 (19)bp Return on Equity 17.95 19.69 (174) Average Shares Outstanding - Basic 302,010 297,325 1.6 % Average Shares Outstanding - Diluted 304,928 301,197 1.2
bp - change is measured as difference in basis points. Exhibit 99.2 5 of 11 Synovus
INCOME STATEMENT (In thousands, except per share data) 2003 2002 4th Quarter ------------------------------------------------------------------- ------------- Fourth Third Second First Fourth '03 vs. '02 Quarter Quarter Quarter Quarter Quarter Change ------------------------------------------------------------------- ------------- Interest Income (Taxable Equivalent) $ 266,581 268,079 272,595 261,627 271,016 (1.6)% Interest Expense 67,314 73,135 79,805 78,174 82,539 (18.4) ------------ ------------ ------------ ------------ ------------ ---------- Net Interest Income (Taxable Equivalent) 199,267 194,944 192,790 183,453 188,477 5.7 Tax Equivalent Adjustment 1,836 1,831 1,853 1,870 1,870 (1.8) ------------ ------------ ------------ ------------ ------------ ---------- Net Interest Income 197,431 193,113 190,937 181,583 186,607 5.8 Provision for Loan Losses 19,800 15,108 16,565 20,304 15,830 25.1 ------------ ------------ ------------ ------------ ------------ ---------- Net Interest Income After Provision 177,631 178,005 174,372 161,279 170,777 4.0 ------------ ------------ ------------ ------------ ------------ ---------- Non-Interest Income: Electronic Payment Processing Services 182,806 177,580 175,698 166,628 161,845 13.0 Other Transaction Processing Services Revenue 37,060 30,927 25,755 25,053 24,990 48.3 Service Charges on Deposits 29,527 26,710 26,484 24,683 24,457 20.7 Fees For Trust Services 8,084 7,189 8,084 6,652 6,774 19.3 Brokerage Revenue 5,353 5,338 4,833 4,937 5,235 2.3 Mortgage Banking Income 6,642 18,021 18,282 15,688 13,337 (50.2) Credit Card Fees 6,927 7,110 6,297 5,710 5,860 18.2 Securities Gains (Losses) 1,155 755 521 60 32 3,509.4 Other Fee Income 6,347 6,039 5,571 5,725 5,702 11.3 Other Non-Interest Income 15,376 11,776 15,136 11,645 28,708 (46.4) ------------ ------------ ------------ ------------ ------------ ---------- Non-Interest Income before Reimbursable Items and Impairment Loss on Private Equity Investment 299,277 291,445 286,661 266,781 276,940 8.1 Reimbursable Items 56,313 55,740 54,638 58,474 57,604 (2.2) Impairment Loss on Private Equity Investment - - - - - N/A ------------ ------------ ------------ ------------ ------------ ---------- Total Non-Interest Income 355,590 347,185 341,299 325,255 334,544 6.3 ------------ ------------ ------------ ------------ ------------ ---------- Non-Interest Expense: Personnel Expense 167,157 171,525 174,925 158,641 164,026 1.9 Occupancy & Equipment Expense 72,816 70,289 69,046 69,537 62,343 16.8 Other Non-Interest Expense 68,504 63,134 58,065 53,339 57,314 19.5 ------------ ------------ ------------ ------------ ------------ ---------- Non-Interest Expense before Reimbursable Item 308,477 304,948 302,036 281,517 283,683 8.7 Reimbursable Items 56,313 55,740 54,638 58,474 57,604 (2.2) ------------ ------------ ------------ ------------ ------------ ---------- Total Non-Interest Expense 364,790 360,688 356,674 339,991 341,287 6.9 ------------ ------------ ------------ ------------ ------------ ---------- Minority Interest in Consolidated Subsidiaries 7,519 6,780 6,529 6,144 6,682 12.5 Income Before Taxes 160,912 157,722 152,468 140,399 157,352 2.3 Income Tax Expense 58,273 57,722 56,101 50,480 52,924 10.1 ------------ ------------ ------------ ------------ ------------ ---------- Net Income $ 102,639 100,000 96,367 89,919 104,428 (1.7) ============ ============ ============ ============ ============ ========== Basic Earnings Per Share 0.34 0.33 0.32 0.30 0.35 (2.3) Diluted Earnings Per Share 0.34 0.33 0.32 0.30 0.35 (3.0) Dividends Declared Per Share 0.17 0.17 0.17 0.17 0.15 11.9 Return on Assets 1.94 % 1.91 1.88 1.89 2.23 (29)bp Return on Equity 18.37 18.32 17.81 17.26 20.64 (227) Average Shares Outstanding - Basic 301,842 301,366 302,776 302,067 300,108 0.6 % Average Shares Outstanding - Diluted 306,160 304,514 305,015 304,002 302,330 1.3
bp - change is measured as difference in basis points. Synovus 6 of 11 Financial Services Segment
INCOME STATEMENT Twelve Months Ended (In thousands) December 31, -------------------------------------------------------- 2003 2002 Change -------------------------------------------------------- Interest Income (Taxable Equivalent) $ 1,068,893 1,061,549 0.7 % Interest Expense 299,066 338,725 (11.7) ------------- ------------------ ----------------- Net Interest Income (Taxable Equivalent) 769,827 722,824 6.5 Tax Equivalent Adjustment 7,371 7,242 1.8 ------------- ------------------ ----------------- Net Interest Income 762,456 715,582 6.6 Provision for Loan Losses 71,777 65,327 9.9 ------------- ------------------ ----------------- Net Interest Income After Provision 690,679 650,255 6.2 ------------- ------------------ ----------------- Non-Interest Income: Service Charges on Deposits 107,404 93,969 14.3 Fees For Trust Services 30,556 28,585 6.9 Brokerage Revenue 20,461 18,840 8.6 Mortgage Banking Income 58,633 41,323 41.9 Credit Card Fees 26,044 22,469 15.9 Securities Gains (Losses) 2,491 2,638 (5.6) Other Fee Income 23,682 20,494 15.6 Other Non-Interest Income 41,752 49,231 (15.2) ------------- ------------------ ----------------- Non-Interest Income before Impairment Loss on Private Equity Investment 311,023 277,549 12.1 Impairment Loss on Private Equity Investment - (8,355) N/A ------------- ------------------ ----------------- Total Non-Interest Income 311,023 269,194 15.5 ------------- ------------------ ----------------- Non-Interest Expense: Personnel Expense 340,219 304,422 11.8 Occupancy & Equipment Expense 75,841 69,214 9.6 Other Non-Interest Expense 159,347 141,881 12.3 ------------- ------------------ ----------------- Total Non-Interest Expense 575,407 515,517 11.6 ------------- ------------------ ----------------- Income Before Taxes 426,295 403,932 5.5 Income Tax Expense 151,709 140,626 7.9 ------------- ------------------ ----------------- Net Income $ 274,586 263,306 4.3 ============= ================== ================= Return on Assets 1.40 % 1.57 (17)bp Return on Equity 16.82 18.85 (203)
bp - change is measured as difference in basis points. 7 of 11 Synovus Financial Services Segment
INCOME STATEMENT (In thousands) 2003 2002 4th Quarter ------------------------------------------------------------------------ Fourth Third Second First Fourth '03 vs. '02 Quarter Quarter Quarter Quarter Quarter Change ------------------------------------------------------ --------------- Interest Income (Taxable Equivalent) $ 266,577 268,093 272,598 261,622 270,974 (1.6)% Interest Expense 67,340 73,175 80,050 78,502 82,856 (18.7) ------------ ---------- --------- -------- --------- -------------- Net Interest Income (Taxable Equivalent) 199,237 194,918 192,548 183,120 188,118 5.9 Tax Equivalent Adjustment 1,831 1,826 1,846 1,865 1,861 (1.3) ------------ ---------- --------- -------- --------- -------------- Net Interest Income 197,406 193,092 190,702 181,255 186,257 6.0 Provision for Loan Losses 19,800 15,108 16,565 20,304 15,830 25.1 ------------ ---------- --------- -------- --------- -------------- Net Interest Income After Provision 177,606 177,984 174,137 160,951 170,427 4.2 ------------ ---------- --------- -------- --------- -------------- Non-Interest Income: Service Charges on Deposits 29,527 26,710 26,484 24,683 24,457 20.7 Fees For Trust Services 8,219 7,322 8,144 6,871 6,893 19.2 Brokerage Revenue 5,353 5,338 4,833 4,937 5,235 2.3 Mortgage Banking Income 6,642 18,021 18,282 15,688 13,337 (50.2) Credit Card Fees 6,927 7,110 6,297 5,710 5,860 18.2 Securities Gains (Losses) 1,155 755 521 60 32 3,509.4 Other Fee Income 6,347 6,039 5,571 5,725 5,702 11.3 Other Non-Interest Income 11,875 9,766 9,757 10,354 23,815 (50.1) ------------ ---------- --------- -------- --------- -------------- Total Non-Interest Income 76,045 81,061 79,889 74,028 85,331 (10.9) ------------ ---------- --------- -------- --------- -------------- Non-Interest Expense: Personnel Expense 80,346 88,894 89,883 81,096 84,490 (4.9) Occupancy & Equipment Expense 20,041 19,244 18,640 17,916 18,005 11.3 Other Non-Interest Expense 44,065 39,426 39,064 36,792 39,357 12.0 ------------ ---------- --------- -------- --------- -------------- Total Non-Interest Expense 144,452 147,564 147,587 135,804 141,852 1.8 ------------ ---------- --------- -------- --------- -------------- Income Before Taxes 109,199 111,481 106,439 99,175 113,906 (4.1) Income Tax Expense 38,536 40,214 37,993 34,965 38,311 0.6 ------------ ---------- --------- -------- --------- -------------- Net Income $ 70,663 71,267 68,446 64,210 75,595 (6.5) ============ ========== ========= ======== ========= ============== Return on Assets 1.39 % 1.42 1.39 1.40 1.68 (29)bp Return on Equity 17.07 17.44 16.61 16.14 19.69 (262)
Synovus 8 of 11
------------------ ------------------ ------------------ BALANCE SHEET December 31, 2003 September 30, 2003 December 31, 2002 ------------------ ------------------ ------------------ (In thousands, except share data) ASSETS Cash and due from banks $ 696,030 706,029 741,092 Interest earning deposits with banks 4,423 4,426 5,055 Federal funds sold and securities purchased under resale agreements 172,922 138,448 92,709 Mortgage loans held for sale 133,306 238,986 245,858 Investment securities available for sale 2,529,257 2,431,951 2,237,725 Loans, net of unearned income 16,464,914 15,918,573 14,463,909 Allowance for loan losses (226,059) (223,461) (199,841) ------------------ ------------------ ------------------ Loans, net 16,238,855 15,695,112 14,264,068 ------------------ ------------------ ------------------ Premises and equipment, net 791,439 776,848 616,355 Contract acquisition costs and computer software, net 338,201 340,078 324,026 Goodwill, net 248,868 248,870 99,108 Other intangible assets, net 37,177 38,992 16,869 Other assets 399,448 403,654 393,381 ------------------ ------------------ ------------------ Total assets $ 21,589,926 21,023,394 19,036,246 ================== ================== ================== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits: Non-interest bearing $ 2,833,568 2,800,637 2,303,375 Interest bearing 13,108,041 12,723,450 11,625,459 ------------------ ------------------ ------------------ Total deposits 15,941,609 15,524,087 13,928,834 Federal funds purchased and securities sold under repurchase agreements 1,354,887 1,115,984 1,275,084 Long-term debt 1,534,389 1,684,798 1,336,200 Billings in excess of cost on uncompleted contracts 17,573 24,074 - Other liabilities 354,591 365,213 338,176 ------------------ ------------------ ------------------ Total liabilities 19,203,049 18,714,156 16,878,294 ------------------ ------------------ ------------------ Minority interest in consolidated subsidiaries 141,838 133,432 117,099 Shareholders' equity: Common stock, par value $1.00 a share (1) 307,748 307,055 300,573 Surplus 442,931 422,615 305,718 Treasury stock (2) (113,940) (112,738) (1,285) Unearned compensation (266) (306) (146) Accumulated other comprehensive income 29,509 32,873 46,113 Retained earnings 1,579,057 1,526,307 1,389,880 ------------------ ------------------ ------------------ Total shareholders' equity 2,245,039 2,175,806 2,040,853 ------------------ ------------------ ------------------ Total liabilities and shareholders' equity $ 21,589,926 21,023,394 19,036,246 ================== ================== ==================
(1) Common shares outstanding: 302,090,128; 301,441,645; and 300,397,763 at December 31, 2003, September 30, 2003, and December 31, 2002, respectively. (2) Treasury shares: 5,658,005 at December 31, 2003, 5,612,964 at September 30, 2003 and 175,264 at December 31, 2002. Synovus AVERAGE BALANCES AND YIELDS/RATES (Dollars in thousands)
2003 2002 Twelve Months Ended ---------------------------------------------------------------------- ------------------------ Fourth Third Second First Fourth December 31, Quarter Quarter Quarter Quarter Quarter 2003 2002 ---------------------------------------------------------------------- ------------------------ Interest Earning Assets - ------------------------------- Taxable Investment Securities $ 2,200,668 2,067,538 2,042,255 1,950,469 1,858,539 $ 2,065,924 1,829,301 Yield 3.74 % 3.73 4.15 4.66 5.16 4.05 % 5.67 Tax-Exempt Investment Securities $ 233,425 233,198 239,136 235,895 236,213 $ 235,401 233,537 Yield 7.11 % 7.13 7.11 7.40 7.39 7.19 7.35 Commercial Loans $ 13,346,751 13,081,909 12,934,397 12,201,561 11,553,371 $12,894,815 10,696,041 Yield 5.73 % 5.84 6.03 6.09 6.41 5.92 6.66 Consumer Loans $ 1,037,283 1,068,485 1,102,649 1,122,468 1,186,842 $ 1,082,449 1,227,101 Yield 8.08 % 8.29 8.43 8.37 8.58 8.30 8.90 Mortgage Loans $ 819,412 810,525 809,684 806,323 827,281 $ 811,519 822,041 Yield 6.10 % 6.21 6.39 6.55 6.74 6.31 7.09 Credit Card Loans $ 239,433 229,271 228,463 234,667 230,120 $ 232,961 223,986 Yield 8.69 % 9.04 9.17 9.22 9.85 9.02 10.49 Home Equity Loans $ 674,264 619,826 586,162 535,960 491,003 $ 604,475 411,575 Yield 4.52 % 4.58 4.76 4.81 5.08 4.66 5.29 Allowance for Loan Losses $ (225,021) (224,360) (221,595) (208,816) (198,745) $ (220,004) (184,253) ------------------------------------------------------------------ ------------------------ Loans, Net $ 15,892,122 15,585,656 15,439,760 14,692,163 14,089,872 $15,406,215 13,196,492 Yield 5.98 % 6.10 6.30 6.38 6.71 6.18 % 7.01 Mortgage Loans Held for Sale $ 136,133 343,069 308,262 229,545 265,847 $ 254,240 229,073 Yield 5.43 % 5.04 5.19 5.57 5.81 5.26 % 6.40 Federal Funds Sold $ 113,728 109,652 126,033 98,009 89,806 $ 111,893 71,389 Yield 1.14 % 1.31 1.40 1.65 1.78 1.36 % 2.12 Time Deposits with Banks $ 4,426 4,500 4,492 4,642 4,110 $ 4,515 3,858 Yield 0.46 % 0.47 0.62 0.70 1.02 0.57 % 1.31 - ----------------------------------------------------------------------------------------------------------------------------------- Total Interest Earning Assets $ 18,580,502 18,343,613 18,159,938 17,210,723 16,544,387 $18,078,187 15,563,649 Yield 5.70 % 5.80 6.02 6.15 6.51 5.91 % 6.82 - ----------------------------------------------------------------------------------------------------------------------------------- Interest Bearing Liabilities - ---------------------------- Time Deposits Over $100,000 $ 3,446,050 3,471,693 3,553,764 3,322,485 3,202,688 $ 3,448,900 2,930,885 Rate 2.46 % 2.67 2.82 2.99 3.21 2.73 % 3.49 Time Deposits Under $100,000 $ 2,311,870 2,407,719 2,481,680 2,397,058 2,403,692 $ 2,399,371 2,415,506 Rate 2.35 % 2.51 2.70 2.97 3.18 2.63 % 3.56 Other Interest Bearing Deposits $ 7,112,385 6,873,110 6,679,868 6,174,605 5,940,073 $ 6,713,008 5,540,296 Rate 0.79 % 0.80 0.99 1.03 1.19 0.90 % 1.31 Federal Funds Purchased and Other Short-Term Borrowings $ 1,176,709 1,020,042 987,860 1,221,637 1,162,710 $ 1,101,216 1,131,455 Rate 0.95 % 0.97 1.13 1.23 1.47 1.07 % 1.65 Long-Term Debt $ 1,576,346 1,698,311 1,770,532 1,511,398 1,286,049 $ 1,639,487 1,185,199 Rate 3.79 % 4.17 4.23 4.43 4.62 4.15 % 4.85 - ----------------------------------------------------------------------------------------------------------------------------------- Total Interest Bearing Liabilities $ 15,623,360 15,470,875 15,473,704 14,627,183 13,995,212 $15,301,981 13,203,342 Rate 1.71 % 1.87 2.06 2.16 2.34 1.95 % 2.55 - ----------------------------------------------------------------------------------------------------------------------------------- Non-Interest Bearing Demand Deposits $ 2,715,015 2,669,500 2,435,395 2,178,503 2,115,910 $ 2,501,539 1,983,131 Shareholders' Equity $ 2,216,818 2,165,657 2,170,881 2,112,620 2,007,679 $ 2,166,777 1,855,492 Total Assets $ 21,028,492 20,760,836 20,513,161 19,326,396 18,542,637 $20,412,853 17,414,654 - ----------------------------------------------------------------------------------------------------------------------------------- Spread 3.99 % 3.93 3.95 3.99 4.17 3.96 % 4.27 Net Interest Margin 4.26 % 4.22 4.25 4.31 4.53 4.26 % 4.65 - -----------------------------------------------------------------------------------------------------------------------------------
Synovus 10 of 11 LOANS OUTSTANDING AND NONPERFORMING LOANS COMPOSITION (Dollars in thousands)
December 31, 2003 -------------------------------------------------------------------------- Loans as a % Total Total % of Total Loans Nonperforming Nonperforming Loan Type Total Loans Outstanding Loans Loans ---------------------------------------------- -------------------------------------------------------------------------- Multi-Family $ 508,750 3.1 % $ 950 1.4 % Hotels 737,078 4.5 7,903 11.7 Office Buildings 629,749 3.8 1,065 1.6 Shopping Centers 456,903 2.8 821 1.2 Commercial Development 446,168 2.7 1,212 1.8 ---------------- ---------------- -------------- -------------- Investment Properties 2,778,648 16.9 11,951 17.7 1-4 Family Construction 830,843 5.0 1,429 2.1 1-4 Family Perm / Mini-Perm 647,512 3.9 3,503 5.2 Residential Development 735,633 4.5 2,093 3.1 ---------------- ---------------- -------------- -------------- 1-4 Family Properties 2,213,988 13.4 7,025 10.4 Land Acquisition 781,062 4.7 118 0.2 ---------------- ---------------- -------------- -------------- Total Investment-Related R/E 5,773,698 35.1 19,094 28.3 Owner-Occupied 1,910,726 11.6 5,768 8.6 Other Property 1,369,475 8.3 1,697 2.5 ---------------- ---------------- -------------- -------------- Total Commercial Real Estate 9,053,899 55.0 26,559 39.4 Commercial & Industrial Loans 4,632,504 28.1 33,456 49.6 Consumer Loans 2,809,545 17.1 7,427 11.0 Unearned Income (31,034) (0.2) ---------------- ---------------- -------------- -------------- Total Loans $ 16,464,914 100.0 % $ 67,442 100.0 % ================ ================ ============== ==============
Synovus 11 of 11
CREDIT QUALITY DATA (Dollars in thousands) 2003 2002 4th Quarter ----------------------------------------------------------------------- ----------- Fourth Third Second First Fourth '03 vs. '02 Quarter Quarter Quarter Quarter Quarter Change ----------------------------------------------------------------------- ----------- Nonperforming Loans $ 67,442 93,633 86,440 79,718 66,736 1.1 % Other Real Estate 28,422 22,842 29,709 31,991 26,517 7.2 Nonperforming Assets 95,864 116,475 116,149 111,709 93,253 2.8 Allowance for Loan Losses 226,059 223,461 220,978 216,989 199,841 13.1 Net Charge-Offs - Quarter 17,202 12,626 12,577 13,689 9,804 75.5 Net Charge-Offs - YTD 56,093 38,891 26,266 13,689 44,223 26.8 Net Charge-Offs/Average Loans - Quarter 0.43 0.32 0.32 0.37 0.27 Net Charge-Offs/Average Loans - YTD 0.36 0.34 0.34 0.37 0.33 Nonperforming Loans/Loans & ORE 0.41 0.59 0.55 0.51 0.46 Nonperforming Assets/Loans & ORE 0.58 0.73 0.73 0.72 0.64 Allowance/Loans 1.37 1.40 1.40 1.40 1.38 Allowance/Nonperforming Loans 335.19 238.66 255.64 272.20 299.45 Allowance/Nonperforming Assets 235.81 191.85 190.25 194.25 214.30 Past Due Loans over 90 days 21,138 23,254 31,675 24,771 30,192 As a Percentage of Loans Outstanding 0.13 0.15 0.20 0.16 0.21 Total Past Dues 109,672 111,269 146,197 160,151 102,105 As a Percentage of Loans Outstanding 0.67 0.70 0.92 1.03 0.70
REGULATORY CAPITAL RATIOS (1) (Dollars in thousands)
----------------- ------------------ ------------------ December 31, 2003 September 30, 2003 December 31, 2002 ----------------- ------------------ ------------------ Tier 1 Capital $ 2,091,914 2,012,154 1,994,654 Total Risk-Based Capital 2,617,972 2,535,615 2,195,652 Tier 1 Capital Ratio 10.45 % 10.30 11.38 Total Risk-Based Capital Ratio 13.08 12.98 12.53 Leverage Ratio 10.09 9.84 10.86
(1) December 31, 2003 information is preliminary. -----END PRIVACY-ENHANCED MESSAGE-----