-----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, O7T3DVMPipa+T8skm9UIrEb3aM36lF/WWTbxmeEC9w043AaxFOIgQLi2r9xiH7Hr H/dVrRjTWuZCoBQ2uI9rWg== 0000018349-04-000083.txt : 20040419 0000018349-04-000083.hdr.sgml : 20040419 20040419121655 ACCESSION NUMBER: 0000018349-04-000083 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040419 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040419 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: 04739855 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 form8k.txt SYNOVUS FORM 8-K 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 April 19, 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 7. Financial Statements and Exhibits. - ------- --------------------------------- (c) Exhibits 99.1 - Registrant's press release dated April 19, 2004 (furnished for purposes of Items 9 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 April 19, 2004, Synovus Financial Corp. ("Registrant") issued a press release and will hold an investor call and webcast to disclose financial results for the first quarter ended March 31, 2004. The press release and Supplemental Information for use at this investor call are furnished herewith as Exhibits 99.1 and 99.2 and incorporated into Item 9 and Item 12 by reference. 2 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: April 19, 2004 By:/s/ Kathleen Moates --------------- -------------------------------- Kathleen Moates Senior Deputy General Counsel 3 EX-99.1 3 exhibit99-1.txt REGISTRANT'S PRESS RELEASE Exhibit 99.1 ----------------------------------------------------- [logo] NEWS RELEASE SYNOVUS ----------------------------------------------------- For Immediate Release Contact: Patrick A. Reynolds Director of Investor Relations (706) 649-4973 Synovus Reports 15.8% Increase in Net Income for First Quarter 2004 Financial Services Segment Fuels Net Income Growth Columbus, Ga., April 19, 2004 -- Synovus' first quarter earnings grew 15.8% over the first quarter 2003 to $104.2 million, which represented earnings per share growth of 14.7% to $.34 per share, Synovus' Chief Executive Officer James H. Blanchard announced today. "We started 2004 with the Synovus Financial Services segment providing the key drivers for an impressive first quarter" said Blanchard. "Excellent credit quality, strong loan growth and a stable margin led the earnings momentum in the quarter. TSYS' performance exceeded internal expectations that were established at the beginning of the year." Return on assets for the quarter was 1.91% and return on equity was 18.0% for the first quarter 2004, compared to 1.89% and 17.26%, respectively, in the same period last year. Shareholders' equity at March 31, 2004, was $2.36 billion, which represented a very strong 10.58% of quarter-end assets. Total assets ended the quarter at $22.3 billion, an increase of 8.2% from the same period last year. Asset quality improved significantly again during the first quarter, continuing the positive trend from the fourth quarter of last year. The net charge-off ratio was 0.16% compared to 0.43% last quarter and 0.37% for the first quarter of last year. The ratio of nonperforming assets to loans and other real estate decreased to 0.56% from 0.58% last quarter, and 0.72% a year ago. The allowance for loan losses was 1.39% of loans, which provides coverage of 337% of nonperforming loans and the provision for loan losses covered net charge-offs by 2.32x for the quarter. Net interest income grew 11.7% over last year as average outstanding loans grew 12.6% and interest expense decreased by 14.4%. Net interest income increased by $5.3 million compared to the fourth quarter of 2003. The first quarter net interest margin was 4.24%, stable when compared to 4.26% last quarter. Net income for the Synovus Financial Services segment increased 21.1% over last year. Return on assets for the quarter was 1.49% and return on equity was 18.18%, compared to 1.40% and 16.14%, respectively, in the same period last year. Financial Services' non-interest income was up 22% as compared to last year, with increases in service charges on deposits of 15% and credit card fees of 6%. Mortgage banking revenue was down 56% compared to last year as the re-financing of mortgages has essentially stopped during the last two quarters. Financial Management Services and insurance revenues increased 12.1% over last year, with fees for trust services up 22% and brokerage revenue up 17%. Synovus continued its strategy of redeployment of its capital and resources to higher growth markets. In the first quarter, a $9.7 million after-tax gain was recorded with the sale of banking operations in Quincy, Florida. Additionally, Synovus continued to invest in the final stages of its Post Office Box 120 / Columbus, GA 31902 www.synovus.com Synovus Reports 15.8% Increase in Net Income for First Quarter/p. 2 first de novo bank - Synovus Bank of Jacksonville, Florida - to be opened in the second quarter and entered a new market in Savannah, Georgia, with the opening of the Sea Island Bank branch in Savannah during the first quarter. TSYS reported net income of $32.6 million for the first quarter 2004 compared to $31.7 million last year. Diluted earnings per share for the quarter increased to $0.17, up from $0.16 last year. During the quarter, TSYS reached an agreement with FleetBoston Financial Corporation to continue processing the Circuit City accounts that Fleet acquired last year, expanding services to include back-office and call center activities. TSYS also extended its processing agreements with BB&T Corporation and First Hawaiian Bank during the quarter. TSYS continues to have ongoing discussions with Bank of America regarding the Fleet merger and with Citigroup regarding its Sears portfolio acquisition. In addition, TSYS' plans and efforts to convert the Bank One portfolio remain fully staffed and on schedule, and TSYS has begun discussions with J.P. Morgan Chase regarding the processing needs of its card portfolio. Blanchard concluded, "The first quarter performance is a confirmation of our expectations of earnings per share growth of 8 - 10% for 2004. Improving credit quality, a stable margin, continued strong loan growth, fee income growth, and continuing expense control encourage us to believe the Financial Services segment will perform at the very top of the peer group. Our optimism for TSYS to win strategically from the ongoing credit card industry consolidations remains high. With our very dedicated and highly motivated team members and our strong balance sheet, we believe we are in position to achieve higher earnings performance as the economy improves throughout the year and beyond." Synovus will host an earnings highlights conference call at 4:00 pm ET, on April 19, 2004. The conference call will be available in the Investor Relations section of www.synovus.com under the "Conference Calls and Webcasts" tab. Please log on 5-10 minutes ahead of the call time. Synovus (NYSE: "SNV") is a diversified financial services holding company with more than $22 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' plans to convert the Bank One portfolio according to schedule, Synovus' expected growth in earnings per share for 2004, Synovus' belief with respect to Financial Services performing at the top of its peer group, Synovus' belief with respect to achieving higher earnings performance, and the assumptions underlying such statements, including, with respect to Synovus' expected increase in earnings per share for 2004, continued improvement in credit quality, resulting in a net charge-off ratio of approximately 0.30% for the year and a non-performing assets ratio in the 0.45-0.55% range by year end; a stable net interest margin in a flat rate environment; loan growth of 10-12% in 2004; and TSYS' net income growth for 2004 within the 5-7% range. 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 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; TSYS does not convert the Bank One portfolio as anticipated; Post Office Box 120 / Columbus, GA 31902 www.synovus.com Synovus Reports 15.8% Increase in Net Income for First Quarter/p. 3 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; the costs and effects of litigation or adverse facts and developments related thereto; 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. ### EX-99.2 4 financialpagesnv.txt SUPPLEMENTAL INFORMATION PREPARED FOR USE WITH THE PRESS RELEASE Exhibit 99.2 Synovus 4 of 9
INCOME STATEMENT (In thousands, except per share data) 2004 2003 1st Quarter ------------------------------------------------------------------- ------------- First Fourth Third Second First '04 vs. '03 Quarter Quarter Quarter Quarter Quarter Change ------------------------------------------------------------------- ------------- Interest Income (Taxable Equivalent) $ 271,491 266,581 268,079 272,595 261,627 3.8 % Interest Expense 66,944 67,314 73,135 79,805 78,174 (14.4) ------------ ------------ ------------ ------------ ------------ ---------- Net Interest Income (Taxable Equivalent) 204,547 199,267 194,944 192,790 183,453 11.5 Tax Equivalent Adjustment 1,800 1,836 1,831 1,853 1,870 (3.7) ------------ ------------ ------------ ------------ ------------ ---------- Net Interest Income 202,747 197,431 193,113 190,937 181,583 11.7 Provision for Loan Losses 15,724 19,800 15,108 16,565 20,304 (22.6) ------------ ------------ ------------ ------------ ------------ ---------- Net Interest Income After Provision 187,023 177,631 178,005 174,372 161,279 16.0 ------------ ------------ ------------ ------------ ------------ ---------- Non-Interest Income: Electronic Payment Processing Services 184,800 182,806 177,580 175,698 166,628 10.9 Other Transaction Processing Services Revenue 38,998 37,060 30,927 25,755 25,053 55.7 Service Charges on Deposits 28,432 29,527 26,710 26,484 24,683 15.2 Fees For Trust Services 8,091 8,084 7,189 8,084 6,652 21.6 Brokerage Revenue 5,759 5,353 5,338 4,833 4,937 16.6 Mortgage Banking Income 6,894 6,642 18,021 18,282 15,688 (56.1) Credit Card Fees 6,040 6,927 7,110 6,297 5,710 5.8 Securities Gains (Losses) (65) 1,155 755 521 60 N/A Other Fee Income 6,920 6,347 6,039 5,571 5,725 20.9 Other Non-Interest Income 30,776 15,376 11,776 15,136 11,645 164.3 ------------ ------------ ------------ ------------ ------------ ---------- Non-Interest Income before Reimbursable Items 316,645 299,277 291,445 286,661 266,781 18.7 Reimbursable Items 60,445 56,313 55,740 54,638 58,474 3.4 ------------ ------------ ------------ ------------ ------------ ---------- Total Non-Interest Income 377,090 355,590 347,185 341,299 325,255 15.9 ------------ ------------ ------------ ------------ ------------ ---------- Non-Interest Expense: Personnel Expense 186,631 167,157 171,525 174,925 158,641 17.6 Occupancy & Equipment Expense 78,390 72,816 70,289 69,046 69,537 12.7 Other Non-Interest Expense 67,857 68,504 63,134 58,065 53,339 27.2 ------------ ------------ ------------ ------------ ------------ ---------- Non-Interest Expense before Reimbursable Items 332,878 308,477 304,948 302,036 281,517 18.2 Reimbursable Items 60,445 56,313 55,740 54,638 58,474 3.4 ------------ ------------ ------------ ------------ ------------ ---------- Total Non-Interest Expense 393,323 364,790 360,688 356,674 339,991 15.7 ------------ ------------ ------------ ------------ ------------ ---------- Minority Interest in Consolidated Subsidiaries 6,249 7,519 6,780 6,529 6,144 1.7 Income Before Taxes 164,541 160,912 157,722 152,468 140,399 17.2 Income Tax Expense 60,379 58,273 57,722 56,101 50,480 19.6 ------------ ------------ ------------ ------------ ------------ ---------- Net Income $ 104,162 102,639 100,000 96,367 89,919 15.8 ============ ============ ============ ============ ============ ========== Basic Earnings Per Share 0.34 0.34 0.33 0.32 0.30 15.2 Diluted Earnings Per Share 0.34 0.34 0.33 0.32 0.30 14.7 Dividends Declared Per Share 0.17 0.17 0.17 0.17 0.17 5.0 Return on Assets 1.91 % 1.94 % 1.91 1.88 1.89 2 bp Return on Equity 18.00 18.37 18.32 17.81 17.26 74 Average Shares Outstanding - Basic 303,644 301,842 301,366 302,776 302,067 0.5 % Average Shares Outstanding - Diluted 306,812 306,160 304,514 305,015 304,002 0.9
bp - change is measured as difference in basis points. Synovus 5 of 9 Financial Services Segment INCOME STATEMENT (In thousands)
2004 2003 1st Quarter ---------------------------------------------------------------- ------------ First Fourth Third Second First '04 vs. '03 Quarter Quarter Quarter Quarter Quarter Change ---------------------------------------------------------------- ------------ Interest Income (Taxable Equivalent) $ 271,486 266,577 268,093 272,598 261,622 3.8 % Interest Expense 67,090 67,340 73,175 80,050 78,502 (14.5) ----------- ----------- ----------- ----------- ------------ ---------- Net Interest Income (Taxable Equivalent) 204,396 199,237 194,918 192,548 183,120 11.6 Tax Equivalent Adjustment 1,796 1,831 1,826 1,846 1,865 (3.7) ----------- ----------- ----------- ----------- ------------ ---------- Net Interest Income 202,600 197,406 193,092 190,702 181,255 11.8 Provision for Loan Losses 15,724 19,800 15,108 16,565 20,304 (22.6) ----------- ----------- ----------- ----------- ------------ ---------- Net Interest Income After Provision 186,876 177,606 177,984 174,137 160,951 16.1 ----------- ----------- ----------- ----------- ------------ ---------- Non-Interest Income: Service Charges on Deposits 28,432 29,527 26,710 26,484 24,683 15.2 Fees For Trust Services 8,232 8,219 7,322 8,144 6,871 19.8 Brokerage Revenue 5,759 5,353 5,338 4,833 4,937 16.6 Mortgage Banking Income 6,894 6,642 18,021 18,282 15,688 (56.1) Credit Card Fees 6,040 6,927 7,110 6,297 5,710 5.8 Securities Gains (Losses) (65) 1,155 755 521 60 N/A Other Fee Income 6,920 6,347 6,039 5,571 5,725 20.9 Other Non-Interest Income 28,238 11,875 9,766 9,757 10,354 172.7 ----------- ----------- ----------- ----------- ------------ ---------- Total Non-Interest Income 90,450 76,045 81,061 79,889 74,028 22.2 ----------- ----------- ----------- ----------- ------------ ---------- Non-Interest Expense: Personnel Expense 96,999 80,346 88,894 89,883 81,096 19.6 Occupancy & Equipment Expense 19,691 20,041 19,244 18,640 17,916 9.9 Other Non-Interest Expense 39,254 44,065 39,426 39,064 36,792 6.7 ----------- ----------- ----------- ----------- ------------ ---------- Total Non-Interest Expense 155,944 144,452 147,564 147,587 135,804 14.8 ----------- ----------- ----------- ----------- ------------ ---------- Income Before Taxes 121,382 109,199 111,481 106,439 99,175 22.4 Income Tax Expense 43,625 38,536 40,214 37,993 34,965 24.8 ----------- ----------- ----------- ----------- ------------ ---------- Net Income $ 77,757 70,663 71,267 68,446 64,210 21.1 =========== =========== =========== =========== ============ ========== Return on Assets 1.49 % 1.39 % 1.42 1.39 1.40 9 bp Return on Equity 18.18 17.07 17.44 16.61 16.14 204
bp - change is measured as difference in basis points. Synovus 6 of 9
------------------- ------------------- ------------------- BALANCE SHEET March 31, 2004 December 31, 2003 March 31, 2003 ------------------- ------------------- ------------------- (In thousands, except share data) ASSETS Cash and due from banks $ 622,896 696,030 745,517 Interest earning deposits with banks 4,124 4,423 4,457 Federal funds sold and securities purchased under resale agreements 154,859 172,922 189,661 Mortgage loans held for sale 152,672 133,306 378,900 Investment securities available for sale 2,621,576 2,529,257 2,307,736 Loans, net of unearned income 17,012,828 16,464,914 15,551,328 Allowance for loan losses (236,056) (226,059) (216,989) ------------------- ------------------- ------------------- Loans, net 16,776,772 16,238,855 15,334,339 ------------------- ------------------- ------------------- Premises and equipment, net 849,266 791,439 656,507 Contract acquisition costs and computer software, net 376,002 383,562 330,448 Goodwill, net 248,868 248,868 99,108 Other intangible assets, net 32,474 33,970 16,129 Other assets 446,838 399,997 540,999 ------------------- ------------------- ------------------- Total assets $ 22,286,347 21,632,629 20,603,801 =================== =================== =================== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits: Non-interest bearing $ 2,957,681 2,833,567 2,514,136 Interest bearing 13,256,627 13,108,042 12,699,956 ------------------- ------------------- ------------------- Total deposits 16,214,308 15,941,609 15,214,092 Federal funds purchased and securities sold under repurchase agreements 1,503,133 1,354,887 966,683 Long-term debt 1,641,856 1,575,777 1,730,594 Billings in excess of cost on uncompleted contracts 10,824 17,573 29,722 Other liabilities 409,959 355,906 360,072 ------------------- ------------------- ------------------- Total liabilities 19,780,080 19,245,752 18,301,163 ------------------- ------------------- ------------------- Minority interest in consolidated subsidiaries 147,843 141,838 122,372 Shareholders' equity: Common stock, par value $1.00 a share 310,094 307,748 305,347 Surplus 494,670 442,931 406,494 Treasury stock (113,940) (113,940) (1,285) Unearned compensation (226) (266) (132) Accumulated other comprehensive income 37,418 29,509 40,413 Retained earnings 1,630,408 1,579,057 1,429,429 ------------------- ------------------- ------------------- Total shareholders' equity 2,358,424 2,245,039 2,180,266 ------------------- ------------------- ------------------- Total liabilities and shareholders' equity $ 22,286,347 21,632,629 20,603,801 =================== =================== =================== On January 30, 2004, Synovus completed the acquisition of Peoples Florida Banking Corporation. Included in other assets at March 31, 2004 is the excess of the purchase price over the recorded net assets of this entity at the date of acquisition. Such excess aggregates approximately $58.0 million. Synovus has not yet completed the allocation of the purchase price of this entity to the respective assets acquired and liabilities assumed. It is expected that such purchase price allocation will be completed in the second quarter and result in the majority of the excess purchase price being recorded as goodwill. Common shares outstanding: 304,436,069; 302,090,128; and 305,171,464 at March 31, 2004, December 31, 2003, and March 31, 2003, respectively. Treasury shares: 5,658,005 at March 31, 2004, 5,658,005 at December 31, 2003, and 175,264 at March 31, 2003.
Synovus 7 of 9 AVERAGE BALANCES AND YIELDS/RATES (Dollars in thousands)
2004 2003 ---------------------------------------------------------------------------------------- First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter ---------------------------------------------------------------------------------------- Interest Earning Assets - ------------------------------------------ Taxable Investment Securities $ 2,319,280 2,200,668 2,067,538 2,042,255 1,950,469 Yield 3.86 % 3.74 3.73 4.15 4.66 Tax-Exempt Investment Securities $ 229,905 233,425 233,198 239,136 235,895 Yield 7.14 % 7.11 7.13 7.11 7.40 Commercial Loans $ 13,991,230 13,346,751 13,081,909 12,934,397 12,201,561 Yield 5.67 % 5.73 5.84 6.03 6.09 Consumer Loans $ 1,003,595 1,037,283 1,068,485 1,102,649 1,122,468 Yield 8.03 % 8.08 8.29 8.43 8.37 Mortgage Loans $ 823,625 819,412 810,525 809,684 806,323 Yield 6.01 % 6.10 6.21 6.39 6.55 Credit Card Loans $ 241,415 239,433 229,271 228,463 234,667 Yield 9.28 % 8.69 9.04 9.17 9.22 Home Equity Loans $ 719,915 674,264 619,826 586,162 535,960 Yield 4.50 % 4.52 4.58 4.76 4.81 Allowance for Loan Losses $ (231,822) (225,021) (224,360) (221,595) (208,816) --------------------------------------------------------------------------------- Loans, Net $ 16,547,958 15,892,122 15,585,656 15,439,760 14,692,163 Yield 5.91 % 5.98 6.10 6.30 6.38 Mortgage Loans Held for Sale $ 105,557 136,133 343,069 308,262 229,545 Yield 5.33 % 5.43 5.04 5.19 5.57 Federal Funds Sold $ 171,284 113,728 109,652 126,033 98,009 Yield 1.10 % 1.14 1.31 1.40 1.65 Time Deposits with Banks $ 4,372 4,426 4,500 4,492 4,642 Yield 0.46 % 0.46 0.47 0.62 0.70 - ---------------------------------------------------------------------------------------------------------------------------------- Total Interest Earning Assets $ 19,378,354 18,580,502 18,343,613 18,159,938 17,210,723 Yield 5.63 % 5.70 5.80 6.02 6.15 - ---------------------------------------------------------------------------------------------------------------------------------- Interest Bearing Liabilities - ------------------------------------------ Time Deposits Over $100,000 $ 3,628,357 3,446,050 3,471,693 3,553,764 3,322,485 Rate 2.29 % 2.46 2.67 2.82 2.99 Time Deposits Under $100,000 $ 2,266,593 2,311,870 2,407,719 2,481,680 2,397,058 Rate 2.28 % 2.35 2.51 2.70 2.97 Other Interest Bearing Deposits $ 7,323,415 7,112,385 6,873,110 6,679,868 6,174,605 Rate 0.80 % 0.79 0.80 0.99 1.03 Federal Funds Purchased and Other Short-Term Borrowings $ 1,495,333 1,176,709 1,020,042 987,860 1,221,637 Rate 0.98 % 0.95 0.97 1.13 1.23 Long-Term Debt $ 1,635,648 1,576,346 1,698,311 1,770,532 1,511,398 Rate 3.71 % 3.79 4.17 4.23 4.43 - ---------------------------------------------------------------------------------------------------------------------------------- Total Interest Bearing Liabilities $ 16,349,345 15,623,360 15,470,875 15,473,704 14,627,183 Rate 1.64 % 1.71 1.87 2.06 2.16 - ---------------------------------------------------------------------------------------------------------------------------------- Non-Interest Bearing Demand Deposits $ 2,769,367 2,715,015 2,669,500 2,435,395 2,178,503 Shareholders' Equity $ 2,327,319 2,216,818 2,165,657 2,170,881 2,112,620 Total Assets $ 21,913,168 21,028,492 20,760,836 20,513,161 19,326,396 - ---------------------------------------------------------------------------------------------------------------------------------- Spread 3.99 % 3.99 3.93 3.95 3.99 Net Interest Margin 4.24 % 4.26 4.22 4.25 4.31 - ----------------------------------------------------------------------------------------------------------------------------------
Synovus 8 of 9 LOANS OUTSTANDING AND NONPERFORMING LOANS COMPOSITION (Dollars in thousands)
March 31, 2004 --------------------------------------------------------------------------- Loans as a % Total Nonperforming Loans of Total Loans Nonperforming as a % of Total Loan Type Total Loans Outstanding Loans Nonperforming Loans ----------------------------------------------- --------------------------------------------------------------------------- Commercial Real Estate Multi-Family $ 559,342 3.3 % $ 863 1.2 % Hotels 769,834 4.5 7,903 11.3 Office Buildings 652,866 3.8 1,305 1.9 Shopping Centers 505,278 3.0 807 1.2 Commercial Development 462,046 2.7 - - ---------------- ---------------- -------------- -------------- Total Investment Properties 2,949,366 17.3 10,878 15.6 ---------------- ---------------- -------------- -------------- 1-4 Family Construction 905,431 5.3 1,581 2.3 1-4 Family Perm / Mini-Perm 709,741 4.2 2,823 4.0 Residential Development 774,940 4.6 1,129 1.6 ---------------- ---------------- -------------- -------------- Total 1-4 Family Properties 2,390,112 14.1 5,533 7.9 Land Acquisition 802,206 4.7 160 0.2 ---------------- ---------------- -------------- -------------- Total Investment-Related Real Estate 6,141,684 36.1 16,571 23.7 ---------------- ---------------- -------------- -------------- Owner-Occupied 1,962,634 11.5 8,005 11.4 Other Property 1,469,086 8.6 1,941 2.8 ---------------- ---------------- -------------- -------------- Total Commercial Real Estate 9,573,404 56.2 26,517 37.9 Commercial & Industrial 4,668,595 27.4 36,548 52.2 Consumer 2,803,938 16.5 6,942 9.9 Unearned Income (33,109) (0.2) - - ---------------- ---------------- -------------- -------------- Total $ 17,012,828 100.0 % $ 70,007 100.0 % ================ ================ ============== ==============
Synovus 9 of 9 CREDIT QUALITY DATA (Dollars in thousands)
2004 2003 1st Quarter --------------------------------------------------------------------------- ----------- First Fourth Third Second First '04 vs. '03 Quarter Quarter Quarter Quarter Quarter Change --------------------------------------------------------------------------- ----------- Nonperforming Loans $ 70,007 67,442 93,633 86,440 79,718 (12.2)% Other Real Estate 26,061 28,422 22,842 29,709 31,991 (18.5) Nonperforming Assets 96,068 95,864 116,475 116,149 111,709 (14.0) Allowance for Loan Losses 236,056 226,059 223,461 220,978 216,989 8.8 Net Charge-Offs - Quarter 6,773 17,202 12,626 12,577 13,689 (50.5) Net Charge-Offs - YTD 6,773 56,093 38,891 26,266 13,689 (50.5) Net Charge-Offs / Average Loans - Quarter 0.16 0.43 0.32 0.32 0.37 Net Charge-Offs / Average Loans - YTD 0.16 0.36 0.34 0.34 0.37 Nonperforming Loans / Loans & ORE 0.41 0.41 0.59 0.55 0.51 Nonperforming Assets / Loans & ORE 0.56 0.58 0.73 0.73 0.72 Allowance / Loans 1.39 1.37 1.40 1.40 1.40 Allowance / Nonperforming Loans 337.19 335.19 238.66 255.64 272.20 Allowance / Nonperforming Assets 245.72 235.81 191.85 190.25 194.25 Past Due Loans over 90 days 23,295 21,138 23,254 31,675 24,771 As a Percentage of Loans Outstanding 0.14 0.13 0.15 0.20 0.16 Total Past Dues 129,844 109,672 111,269 146,197 160,151 As a Percentage of Loans Outstanding 0.76 0.67 0.70 0.92 1.03 - ------------------------------------------------------------------------------------------------------------------------------------
REGULATORY CAPITAL RATIOS (Dollars in thousands) -------------- ----------------- -------------- March 31, 2004 December 31, 2003 March 31, 2003 -------------- ----------------- -------------- Tier 1 Capital $ 2,148,153 2,091,755 2,018,690 Total Risk-Based Capital 2,684,209 2,617,814 2,535,679 Tier 1 Capital Ratio 10.36 % 10.43 10.71 Total Risk-Based Capital Ratio 12.94 13.06 13.45 Leverage Ratio 9.97 10.09 10.59 March 31, 2004 information is preliminary. As noted in footnote (1) to the accompanying balance sheet, the purchase price allocation related to the acquisition of Peoples Florida Banking Corporation has not been completed. For purposes of the March 31, 2004 regulatory capital calculations, we have assumed that $58.0 million of the total purchase price will be allocated to intangibles which will be disallowed for regulatory capital purposes.
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