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.