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 ------------------------------------------------------------------------------------------------------------------------------------
10 of 11
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 % =================== ================== ================ ===================
Synovus 11 of 11
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.