-----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, ALLO/UQ6foscMb2fUvyWsN+nrPSPE4Z8ozdEb02IWZX+nz9fG4ZU3RawKH5TBPZ+ BtCcwB9VswngV19pozk4XA== 0000018349-04-000114.txt : 20040721 0000018349-04-000114.hdr.sgml : 20040721 20040721111842 ACCESSION NUMBER: 0000018349-04-000114 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040721 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040721 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: 04923641 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 filing8-k.txt SYNOVUS 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 July 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) 1111 Bay Avenue, Suite 500, Columbus, Georgia 31901 ---------------------------------------------------- (Address of principal executive offices) (Zip Code) (706) 649-2267 ------------- (Registrant's telephone number, including area code) 901 Front Avenue, Suite 301, Columbus, Georgia 31901 ---------------------------------------------------- (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 July 21, 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 July 21, 2004, Synovus Financial Corp. ("Registrant") issued a press release and will hold an investor call and webcast to disclose financial results for the second quarter ended June 30, 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: July 21, 2004 By:/s/ Kathleen Moates --------------- -------------------------------- Kathleen Moates Senior Deputy General Counsel 3 EX-99.1 2 ex991.txt REGISTRANT'S PRESS RELEASE DATED JULY 21,2004 Exhibit 99.1 ----------------------------------------------- [Logo] NEWS RELEASE ----------------------------------------------- For Immediate Release --------------------- Contact: Patrick A. Reynolds Director of Investor Relations (706) 649-4973 Synovus Reports 9.1% Increase in Net Income for Second Quarter 2004 Financial Services Segment Growth Continues as TSYS is Selected by JP Morgan Chase Columbus, Ga., July 21, 2004 -- Synovus' second quarter earnings grew 9.1% over the second quarter 2003 to $105.1 million, which represented earnings per share growth of 7.7% to $.34 per share, Synovus' Chief Executive Officer James H. Blanchard announced today. "Throughout the first half of 2004, the Synovus Financial Services segment provided the key drivers for impressive growth in net income" said Blanchard. "Excellent credit quality, strong loan growth and a stable margin led the earnings momentum in the second quarter. Additionally, one of the more significant events in TSYS' history occurred during the quarter - TSYS was selected by JP Morgan Chase to provide its credit card processing functions." Return on assets for the quarter was 1.86% and return on equity was 17.60% for the second quarter 2004, compared to 1.88% and 17.81%, respectively, in the same period last year. Shareholders' equity at June 30, 2004, was $2.49 billion, which represented a very strong 10.55% of quarter-end assets. Total assets ended the quarter at $23.6 billion, an increase of 11.8% from the same period last year. Asset quality continued to improve during the second quarter, continuing the positive trend from the fourth quarter of last year. The net charge-off ratio was 0.22% compared to 0.32% for the second quarter of last year. For the first six months of the year, the net charge-off ratio is 0.19%. The ratio of nonperforming assets to loans and other real estate decreased to 0.52% from 0.56% last quarter, and 0.73% a year ago. The allowance for loan losses was 1.38% of loans, which provides coverage of 368% of nonperforming loans and the provision for loan losses covered net charge-offs by 1.83x for the quarter. Net interest income grew 10.2% over the same quarter last year as average outstanding loans grew 11.3% and interest expense decreased by 16.3%. The second quarter net interest margin was 4.24%, the same as last quarter, and stable when compared to 4.25% in the second quarter last year. Net income for the Synovus Financial Services segment increased 11.1% over the second quarter of last year. Return on assets for the quarter was 1.41% and return on equity was 17.26%, compared to 1.39% and 16.61%, respectively, in the same period last year. Financial Services' non-interest income was flat as compared to last year, as mortgage banking revenue was down 68% compared to last year. Service charges on deposits and credit card fees for the second quarter increased by 18% and 19%, respectively, compared to the same period last year. Financial Management Services and insurance revenues increased 8% over last year, with fees for financial planning and asset management up 33% and brokerage revenue up 16%. Financial Services' G&A expense was up 4.1% compared to the second quarter last year and down 1.5% compared to the first quarter of 2004. Financial Services' efficiency Post Office Box 120 / Columbus, GA 31902 www.synovus.com Synovus Reports 9.1% Increase in Net Income for Second Quarter/p. 2 ratio was 52.7% in the quarter and 52.8% for the first six months of 2004, compared to 54.3% and 53.6%, respectively, in 2003. TSYS reported net income of $35.9 million for the second quarter 2004 compared to $34.3 million last year. Diluted earnings per share for the quarter increased to $0.18, up from $0.17 last year. During the quarter, JP Morgan Chase selected TSYS to provide credit card processing for the merged card portfolios of the former Bank One Corp. and JP Morgan Chase, which will complete a planned upgrade of its card-processing technology. TSYS will continue exclusive negotiations with JP Morgan Chase to provide processing for the 87 million cardmembers of Chase Card Services. Both companies expect to reach a definitive agreement in the near future. Blanchard concluded, "The second 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. With the addition of JP Morgan Chase, TSYS is building momentum with over 100 million accounts in the conversion pipeline. 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 4:30 pm ET, on July 21, 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 $24 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' expectation that it will reach a definitive agreement with JP Morgan Chase in the near future, 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 and JP Morgan Chase are not able to satisfactorily conclude negotiations with respect to a definitive agreement; the strength of the United Post Office Box 120 / Columbus, GA 31902 www.synovus.com Synovus Reports 9.1% Increase in Net Income for Second Quarter/p. 3 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. ### Post Office Box 120 / Columbus, GA 31902 www.synovus.com EX-99.2 3 ex992.txt SUPPLEMENTAL INFORMATION PREPARED FOR USE WITH THE PRESS RELEASE Exhibit 99.2 Synovus 4 of 11
INCOME STATEMENT Six Months Ended (In thousands, except per share data) June 30, ------------------------------------------------------- 2004 2003 Change ------------------------------------------------------- Interest Income (Taxable Equivalent) $ 550,504 534,222 3.0 % Interest Expense 133,747 157,979 (15.3) ---------------- ------------- ------------- Net Interest Income (Taxable Equivalent) 416,757 376,243 10.8 Tax Equivalent Adjustment 3,547 3,723 (4.7) ---------------- ------------- ------------- Net Interest Income 413,210 372,520 10.9 Provision for Loan Losses 33,272 36,869 (9.8) ---------------- ------------- ------------- Net Interest Income After Provision 379,938 335,651 13.2 ---------------- ------------- ------------- Non-Interest Income: Electronic Payment Processing Services 377,538 342,326 10.3 Other Transaction Processing Services Revenue 78,694 50,808 54.9 Service Charges on Deposits 59,620 51,167 16.5 Fees For Trust Services 15,998 14,736 8.6 Brokerage Revenue 11,375 9,770 16.4 Mortgage Banking Income 12,666 33,970 (62.7) Credit Card Fees 13,549 12,007 12.8 Securities Gains (Losses) (65) 581 nm Other Fee Income 14,122 11,296 25.0 Other Non-Interest Income 48,695 26,781 81.8 ---------------- ------------- ------------- Non-Interest Income before Reimbursable Items 632,192 553,442 14.2 Reimbursable Items 116,190 113,112 2.7 ---------------- ------------- ------------- Total Non-Interest Income 748,382 666,554 12.3 ---------------- ------------- ------------- Non-Interest Expense: Personnel Expense 361,586 333,566 8.4 Occupancy & Equipment Expense 164,577 138,583 18.8 Other Non-Interest Expense 142,222 111,404 27.7 ---------------- ------------- ------------- Non-Interest Expense before Reimbursable Items 668,385 583,553 14.5 Reimbursable Items 116,190 113,112 2.7 ---------------- ------------- ------------- Total Non-Interest Expense 784,575 696,665 12.6 ---------------- ------------- ------------- Minority Interest in Consolidated Subsidiaries 13,101 12,673 3.4 Income Before Taxes 330,644 292,867 12.9 Income Tax Expense 121,341 106,581 13.8 ---------------- ------------- ------------- Net Income $ 209,303 186,286 12.4 ================ ============= ============= Basic Earnings Per Share 0.69 0.62 11.4 Diluted Earnings Per Share 0.68 0.61 11.8 Dividends Declared Per Share 0.35 0.33 5.0 Return on Assets 1.89 % 1.89 - bp Return on Equity 17.80 17.54 26 Average Shares Outstanding - Basic 304,912 302,423 0.8 % Average Shares Outstanding - Diluted 307,835 306,529 0.4 bp - change is measured as difference in basis points. nm - not meaningful
Synovus 5 of 11
INCOME STATEMENT (In thousands, except per share data) 2004 2003 2nd Quarter ------------------------------------------------------------------------------ Second First Fourth Third Second '04 vs. '03 Quarter Quarter Quarter Quarter Quarter Change ------------------------------------------------------------------------------ Interest Income (Taxable Equivalent) $ 279,013 271,491 266,581 268,079 272,595 2.4 % Interest Expense 66,804 66,944 67,314 73,135 79,805 (16.3) ----------- --------- ---------- -------- -------- ---------- Net Interest Income (Taxable Equivalent) 212,209 204,547 199,267 194,944 192,790 10.1 Tax Equivalent Adjustment 1,747 1,800 1,836 1,831 1,853 (5.7) ----------- --------- ---------- -------- -------- ---------- Net Interest Income 210,462 202,747 197,431 193,113 190,937 10.2 Provision for Loan Losses 17,548 15,724 19,800 15,108 16,565 5.9 ----------- --------- ---------- -------- -------- ---------- Net Interest Income After Provision 192,914 187,023 177,631 178,005 174,372 10.6 ----------- --------- ---------- -------- -------- ---------- Non-Interest Income: Electronic Payment Processing Services 192,738 184,800 182,806 177,580 175,698 9.7 Other Transaction Processing Services Revenue 39,696 38,998 37,060 30,927 25,755 54.1 Service Charges on Deposits 31,188 28,432 29,527 26,710 26,484 17.8 Fees For Trust Services 7,907 8,091 8,084 7,189 8,084 (2.2) Brokerage Revenue 5,616 5,759 5,353 5,338 4,833 16.2 Mortgage Banking Income 5,772 6,894 6,642 18,021 18,282 (68.4) Credit Card Fees 7,509 6,040 6,927 7,110 6,297 19.2 Securities Gains (Losses) - (65) 1,155 755 521 nm Other Fee Income 7,202 6,920 6,347 6,039 5,571 29.3 Other Non-Interest Income 17,919 30,776 15,376 11,776 15,136 18.4 ----------- --------- ---------- -------- -------- ---------- Non-Interest Income before Reimbursable Items 315,547 316,645 299,277 291,445 286,661 10.1 Reimbursable Items 55,745 60,445 56,313 55,740 54,638 2.0 ----------- --------- ---------- -------- -------- ---------- Total Non-Interest Income 371,292 377,090 355,590 347,185 341,299 8.8 ----------- --------- ---------- -------- -------- ---------- Non-Interest Expense: Personnel Expense 174,955 186,631 167,157 171,525 174,925 0.0 Occupancy & Equipment Expense 86,187 78,390 72,816 70,289 69,046 24.8 Other Non-Interest Expense 74,365 67,857 68,504 63,134 58,065 28.1 ----------- --------- ---------- -------- -------- ---------- Non-Interest Expense before Reimbursable Items 335,507 332,878 308,477 304,948 302,036 11.1 Reimbursable Items 55,745 60,445 56,313 55,740 54,638 2.0 ----------- --------- ---------- -------- -------- ---------- Total Non-Interest Expense 391,252 393,323 364,790 360,688 356,674 9.7 ----------- --------- ---------- -------- -------- ---------- Minority Interest in Consolidated Subsidiaries 6,852 6,249 7,519 6,780 6,529 5.0 Income Before Taxes 166,102 164,541 160,912 157,722 152,468 8.9 Income Tax Expense 60,961 60,379 58,273 57,722 56,101 8.7 ----------- --------- ---------- -------- -------- ---------- Net Income $ 105,141 104,162 102,639 100,000 96,367 9.1 =========== ========= ========== ======== ======== ========== Basic Earnings Per Share 0.34 0.34 0.34 0.33 0.32 7.9 Diluted Earnings Per Share 0.34 0.34 0.34 0.33 0.32 7.7 Dividends Declared Per Share 0.17 0.17 0.17 0.17 0.17 5.0 Return on Assets 1.86 % 1.91 % 1.94 % 1.91 1.88 (2)bp Return on Equity 17.60 18.00 18.37 18.32 17.81 (21) Average Shares Outstanding - Basic 306,180 303,644 301,842 301,366 302,776 1.1 % Average Shares Outstanding - Diluted 308,857 306,812 306,160 304,514 305,015 1.3
bp - change is measured as difference in basis points. nm - not meaningful Synovus 6 of 11 Financial Services Segment
INCOME STATEMENT Six Months Ended (In thousands) June 30, ------------------------------------------------ 2004 2003 Change ------------------------------------------------ Interest Income (Taxable Equivalent) $ 550,496 534,222 3.0 % Interest Expense 134,054 158,550 (15.5) -------------- ------------ ------------ Net Interest Income (Taxable Equivalent) 416,442 375,672 10.9 Tax Equivalent Adjustment 3,540 3,712 (4.6) -------------- ------------ ------------ Net Interest Income 412,902 371,960 11.0 Provision for Loan Losses 33,272 36,869 (9.8) -------------- ------------ ------------ Net Interest Income After Provision 379,630 335,091 13.3 -------------- ------------ ------------ Non-Interest Income: Service Charges on Deposits 59,620 51,167 16.5 Fees For Trust Services 16,329 15,015 8.8 Brokerage Revenue 11,375 9,770 16.4 Mortgage Banking Income 12,666 33,970 (62.7) Credit Card Fees 13,549 12,007 12.8 Securities Gains (Losses) (65) 581 nm Other Fee Income 14,122 11,296 25.0 Other Non-Interest Income 42,225 20,111 110.0 -------------- ------------ ------------ Total Non-Interest Income 169,821 153,917 10.3 -------------- ------------ ------------ Non-Interest Expense: Personnel Expense 188,282 170,979 10.1 Occupancy & Equipment Expense 39,695 36,556 8.6 Other Non-Interest Expense 81,565 75,856 7.5 -------------- ------------ ------------ Total Non-Interest Expense 309,542 283,391 9.2 -------------- ------------ ------------ Income Before Taxes 239,909 205,617 16.7 Income Tax Expense 86,112 72,959 18.0 -------------- ------------ ------------ Net Income $ 153,797 132,658 15.9 ============== ============ ============ Return on Assets 1.45 % 1.39 6 bp Return on Equity 17.71 16.38 133
bp - change is measured as difference in basis points. nm - not meaningful Synovus 7 of 11 Financial Services Segment
INCOME STATEMENT (In thousands) 2004 2003 2nd Quarter --------------------------------------------------------------------- ------------- Second First Fourth Third Second '04 vs. '03 Quarter Quarter Quarter Quarter Quarter Change --------------------------------------------------------------------- ------------- Interest Income (Taxable Equivalent) $ 279,010 271,486 266,577 268,093 272,598 2.4 % Interest Expense 66,964 67,090 67,340 73,175 80,050 (16.3) ----------- --------- ------------- ------------- -------------- ------------- Net Interest Income (Taxable Equivalent) 212,046 204,396 199,237 194,918 192,548 10.1 Tax Equivalent Adjustment 1,744 1,796 1,831 1,826 1,846 (5.5) ----------- --------- ------------- ------------- -------------- ------------- Net Interest Income 210,302 202,600 197,406 193,092 190,702 10.3 Provision for Loan Losses 17,548 15,724 19,800 15,108 16,565 5.9 ----------- --------- ------------- ------------- -------------- ------------- Net Interest Income After Provision 192,754 186,876 177,606 177,984 174,137 10.7 ----------- --------- ------------- ------------- -------------- ------------- Non-Interest Income: Service Charges on Deposits 31,188 28,432 29,527 26,710 26,484 17.8 Fees For Trust Services 8,097 8,232 8,219 7,322 8,144 (0.6) Brokerage Revenue 5,616 5,759 5,353 5,338 4,833 16.2 Mortgage Banking Income 5,772 6,894 6,642 18,021 18,282 (68.4) Credit Card Fees 7,509 6,040 6,927 7,110 6,297 19.2 Securities Gains (Losses) (65) 1,155 755 521 nm Other Fee Income 7,202 6,920 6,347 6,039 5,571 29.3 Other Non-Interest Income 13,987 28,238 11,875 9,766 9,757 43.4 ----------- --------- ------------- ------------- -------------- ------------- Total Non-Interest Income 79,371 90,450 76,045 81,061 79,889 (0.6) ----------- --------- ------------- ------------- -------------- ------------- Non-Interest Expense: Personnel Expense 91,283 96,999 80,346 88,894 89,883 1.6 Occupancy & Equipment Expense 20,004 19,691 20,041 19,244 18,640 7.3 Other Non-Interest Expense 42,310 39,254 44,065 39,426 39,064 8.3 ----------- --------- ------------- ------------- -------------- ------------- Total Non-Interest Expense 153,597 155,944 144,452 147,564 147,587 4.1 ----------- --------- ------------- ------------- -------------- ------------- Income Before Taxes 118,528 121,382 109,199 111,481 106,439 11.4 Income Tax Expense 42,486 43,625 38,536 40,214 37,993 11.8 ----------- --------- ------------- ------------- -------------- ------------- Net Income $ 76,042 77,757 70,663 71,267 68,446 11.1 =========== ========= ============= ============= ============== ============= Return on Assets 1.41 % 1.49 % 1.39 % 1.42 1.39 2 bp Return on Equity 17.26 18.18 17.07 17.44 16.61 65
bp - change is measured as difference in basis points. nm - not meaningful Synovus 8 of 11
------------- ------------------ -------------- BALANCE SHEET June 30, 2004 December 31, 2003 June 30, 2003 ------------- ------------------ -------------- (In thousands, except share data) ASSETS Cash and due from banks $ 756,534 696,030 804,899 Interest earning deposits with banks 4,134 4,423 4,429 Federal funds sold and securities purchased under resale agreements 182,414 172,922 139,543 Mortgage loans held for sale 160,507 133,306 362,799 Investment securities available for sale 2,604,799 2,529,257 2,327,296 Loans, net of unearned income 18,075,007 16,464,914 15,831,548 Allowance for loan losses (248,585) (226,059) (220,978) ---------------- ---------------- --------------- Loans, net 17,826,422 16,238,855 15,610,570 ---------------- ---------------- --------------- Premises and equipment, net 861,815 791,439 763,955 Contract acquisition costs and computer software, net 357,724 383,562 334,405 Goodwill, net 381,057 248,868 247,371 Other intangible assets, net 38,409 33,970 33,466 Other assets 386,401 399,997 435,654 ---------------- ---------------- --------------- Total assets $ 23,560,216 21,632,629 21,064,487 ================ ================ =============== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits: Non-interest bearing $ 3,148,562 2,833,567 2,735,416 Interest bearing 14,342,194 13,108,042 12,889,141 ---------------- ---------------- --------------- Total deposits 17,490,756 15,941,609 15,624,557 Federal funds purchased and securities sold under repurchase agreements 1,325,692 1,354,887 962,320 Long-term debt 1,732,490 1,575,777 1,777,139 Billings in excess of costs and profits on uncompleted contr 1,407 17,573 28,473 Other liabilities 370,509 355,906 389,441 ---------------- ---------------- --------------- Total liabilities 20,920,854 19,245,752 18,781,930 ---------------- ---------------- --------------- Minority interest in consolidated subsidiaries 153,265 141,838 125,873 Company-obligated mandatory redeemable capital securities of subsidiary trusts - - 16,750 Shareholders' equity: Common stock, par value $1.00 a share 314,638 307,748 306,312 Surplus 612,343 442,931 413,783 Treasury stock (113,986) (113,940) (102,083) Unearned compensation (186) (266) (364) Accumulated other comprehensive income (loss) (8,704) 29,509 46,195 Retained earnings 1,681,992 1,579,057 1,476,091 ---------------- ---------------- --------------- Total shareholders' equity 2,486,097 2,245,039 2,139,934 ---------------- ---------------- --------------- Total liabilities and shareholders' equity $ 23,560,216 21,632,629 21,064,487 ================ ================ =============== On June 1, 2004 Synovus completed the acquisition of Trust One Bank. Included in other assets at June 30, 2004 is the excess of the purchase price over the recorded net assets of this entity at the date of acquisition. Such amount is approximately $76.6 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 third quarter and result in the majority of the excess purchase price being recorded as goodwill. For regulatory capital purposes, the entire excess over purchase price is assumed to be goodwill. (2) Common shares outstanding: 308,976,481; 302,090,128; and 301,148,745 at June 30, 2004, December 31, 2003, and June 30, 2003, respectively. (3) Treasury shares: 5,661,623 at June 30, 2004, 5,658,005 at December 31, 2003, and 5,162,964 at June 30, 2003.
Synovus 9 of 11
AVERAGE BALANCES AND YIELDS/RATES (Dollars in thousands) 2004 2003 --------------------------------------------------------------------------------------- Second First Fourth Third Second Quarter Quarter Quarter Quarter Quarter --------------------------------------------------------------------------------------- Interest Earning Assets - ---------------------------------------- Taxable Investment Securities $ 2,355,328 2,319,280 2,200,668 2,067,538 2,042,255 Yield 3.71 % 3.86 3.74 3.73 4.15 Tax-Exempt Investment Securities $ 230,885 229,905 233,425 233,198 239,136 Yield 7.14 % 7.14 7.11 7.13 7.11 Commercial Loans $ 14,567,795 13,991,230 13,346,751 13,081,909 12,934,397 Yield 5.66 % 5.67 5.73 5.84 6.03 Consumer Loans $ 967,450 1,003,595 1,037,283 1,068,485 1,102,649 Yield 8.00 % 8.03 8.08 8.29 8.43 Mortgage Loans $ 856,688 823,625 819,412 810,525 809,684 Yield 5.92 % 6.01 6.10 6.21 6.39 Credit Card Loans $ 245,534 241,415 239,433 229,271 228,463 Yield 8.53 % 9.28 8.69 9.04 9.17 Home Equity Loans $ 790,238 719,915 674,264 619,826 586,162 Yield 4.45 % 4.50 4.52 4.58 4.76 Allowance for Loan Losses $ (241,082) (231,822) (225,021) (224,360) (221,595) --------------------------------------------------------------------------------------- Loans, Net $ 17,186,623 16,547,958 15,892,122 15,585,656 15,439,760 Yield 5.87 % 5.91 5.98 6.10 6.30 Mortgage Loans Held for Sale $ 148,471 105,557 136,133 343,069 308,262 Yield 5.27 % 5.33 5.43 5.04 5.19 Federal Funds Sold $ 158,373 171,284 113,728 109,652 126,033 Yield 1.04 % 1.10 1.14 1.31 1.40 Time Deposits with Banks $ 4,137 4,372 4,426 4,500 4,492 Yield 0.45 % 0.46 0.46 0.47 0.62 - ------------------------------------------------------------------------------------------------------------------------------------ Total Interest Earning Assets $ 20,083,817 19,378,354 18,580,502 18,343,613 18,159,938 Yield 5.58 % 5.63 5.70 5.80 6.02 - ------------------------------------------------------------------------------------------------------------------------------------ Interest Bearing Liabilities - ---------------------------------------- Time Deposits Over $100,000 $ 3,789,423 3,628,357 3,446,050 3,471,693 3,553,764 Rate 2.21 % 2.29 2.46 2.67 2.82 Time Deposits Under $100,000 $ 2,225,224 2,266,593 2,311,870 2,407,719 2,481,680 Rate 2.21 % 2.28 2.35 2.51 2.70 Other Interest Bearing Deposits $ 7,624,880 7,323,415 7,112,385 6,873,110 6,679,868 Rate 0.80 % 0.80 0.79 0.80 0.99 Federal Funds Purchased and Other Short-Term Borrowings $ 1,513,306 1,495,333 1,176,709 1,020,042 987,860 Rate 1.00 % 0.98 0.95 0.97 1.13 Long-Term Debt $ 1,667,441 1,635,648 1,576,346 1,698,311 1,770,532 Rate 3.53 % 3.71 3.79 4.17 4.23 - ------------------------------------------------------------------------------------------------------------------------------------ Total Interest Bearing Liabilities $ 16,820,274 16,349,345 15,623,360 15,470,875 15,473,704 Rate 1.59 % 1.64 1.71 1.87 2.06 - ------------------------------------------------------------------------------------------------------------------------------------ Non-Interest Bearing Demand Deposits $ 3,006,493 2,769,367 2,715,015 2,669,500 2,435,395 Shareholders' Equity $ 2,402,271 2,327,319 2,216,818 2,165,657 2,170,881 Total Assets $ 22,705,467 21,913,168 21,028,492 20,760,836 20,513,161 - ------------------------------------------------------------------------------------------------------------------------------------ Spread 3.99 % 3.99 3.99 3.93 3.95 Net Interest Margin 4.24 % 4.24 4.26 4.22 4.25 - ------------------------------------------------------------------------------------------------------------------------------------
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LOANS OUTSTANDING AND NONPERFORMING LOANS COMPOSITION (Dollars in thousands) June 30, 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 $ 571,693 3.2 % $ 1,248 1.8 % Hotels 810,839 4.5 7,871 11.7 Office Buildings 713,577 3.9 7 - Shopping Centers 548,173 3.0 1,849 2.7 Commercial Development 527,712 2.9 - - ------------------- ------------------ ---------------- ------------------- Total Investment Properties 3,171,994 17.5 10,975 16.3 1-4 Family Construction 972,974 5.4 624 0.9 1-4 Family Perm / Mini-Perm 756,963 4.2 3,201 4.7 Residential Development 895,535 5.0 1 - ------------------- ------------------ ---------------- ------------------- Total 1-4 Family Properties 2,625,472 14.5 3,826 5.7 Land Acquisition 867,539 4.8 85 0.1 ------------------- ------------------ ---------------- ------------------- Total Investment-Related Real Estate 6,665,005 36.9 14,886 22.1 Owner-Occupied 2,069,066 11.4 7,196 10.7 Other Property 1,564,211 8.7 2,200 3.3 ------------------- ------------------ ---------------- ------------------- Total Commercial Real Estate 10,298,282 57.0 24,282 36.0 Commercial & Industrial 4,826,581 26.7 37,774 56.0 Consumer 2,986,648 16.5 5,432 8.0 Unearned Income (36,504) (0.2) - - ------------------- ------------------ ---------------- ------------------- Total $ 18,075,007 100.0 % $ 67,488 100.0 % =================== ================== ================ ===================
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CREDIT QUALITY DATA (Dollars in thousands) 2004 2002 2003 2nd Quarter ------------------------------------------------------------------ ---------------- Second First Fourth Third Second '04 vs. '03 Quarter Quarter Quarter Quarter Quarter Change ------------------------------------------------------------------ ---------------- Nonperforming Loans $ 67,489 70,007 67,442 93,633 86,440 (21.9) % Other Real Estate 26,972 26,061 28,422 22,842 29,709 (9.2) Nonperforming Assets 94,461 96,068 95,864 116,475 116,149 (18.7) Allowance for Loan Losses 248,585 236,056 226,059 223,461 220,978 12.5 Net Charge-Offs - Quarter 9,589 6,773 17,202 12,626 12,577 (23.5) Net Charge-Offs - YTD 16,362 6,773 56,093 38,891 26,266 (37.7) Net Charge-Offs / Average Loans - Quarter 0.22 0.16 0.43 0.32 0.32 Net Charge-Offs / Average Loans - YTD 0.19 0.16 0.36 0.34 0.34 Nonperforming Loans / Loans & ORE 0.37 0.41 0.41 0.59 0.55 Nonperforming Assets / Loans & ORE 0.52 0.56 0.58 0.73 0.73 Allowance / Loans 1.38 1.39 1.37 1.40 1.40 Allowance / Nonperforming Loans 368.34 337.19 335.19 238.66 255.64 Allowance / Nonperforming Assets 263.16 245.72 235.81 191.85 190.25 Past Due Loans over 90 days 27,453 23,295 21,138 23,254 31,675 As a Percentage of Loans Outstanding 0.15 0.14 0.13 0.15 0.20 Total Past Dues 109,385 129,844 109,672 111,269 146,197 As a Percentage of Loans Outstanding 0.61 0.76 0.67 0.70 0.92 - ------------------------------------------------------------------------------------------------------------------------------------
REGULATORY CAPITAL RATIOS (Dollars in thousands) -------------- ----------------- -------------- June 30, 2004 December 31, 2003 June 30, 2003 -------------- ----------------- -------------- Tier 1 Capital $ 2,173,332 2,091,755 1,951,610 Total Risk-Based Capital 2,721,917 2,617,814 2,472,588 Tier 1 Capital Ratio 9.98 % 10.43 10.05 Total Risk-Based Capital Ratio 12.49 13.06 12.74 Leverage Ratio 9.78 10.09 9.67 - ------------------------------------------------------------------------------------------------------------------------------------ June 30, 2004 information is preliminary. As noted in footnote (1) to the accompanying Balance Sheet, the purcase price allocation related to the acquisition of Trust One Bank has not been completed. For purposes of the June 30, 2004 regulatory capital calculations, we have assumed that $76.6 million of the total purchase price will be allocated to intangibles which will be disallowed for regulatory capital purposes.
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