EX-99.2 3 exhibit992.htm 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,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2006

 

2005

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income (Taxable Equivalent)

$

940,168

 

693,692

 

35.5

%

 

 

 

 

Interest Expense

 

387,567

 

226,554

 

71.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income (Taxable Equivalent)

 

552,601

 

467,138

 

18.3

 

 

 

 

 

Tax Equivalent Adjustment

 

2,962

 

3,211

 

(7.7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

549,639

 

463,927

 

18.5

 

 

 

 

 

Provision for Loan Losses

 

38,083

 

42,106

 

(9.6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income After Provision

 

511,556

 

421,821

 

21.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Income:

 

 

 

 

 

 

 

 

 

 

 

Electronic Payment Processing Services

 

454,990

 

420,947

 

8.1

 

 

 

 

 

Merchant Services

 

129,769

 

95,801

 

35.5

 

 

 

 

 

Other Transaction Processing Services Revenue

 

91,588

 

93,838

 

(2.4)

 

 

 

 

 

Service Charges on Deposits

 

56,123

 

54,994

 

2.1

 

 

 

 

 

Fiduciary and Asset Management Fees

 

23,222

 

22,175

 

4.7

 

 

 

 

 

Brokerage and Investment Banking Revenue

 

13,506

 

12,070

 

11.9

 

 

 

 

 

Mortgage Banking Income

 

13,978

 

13,328

 

4.9

 

 

 

 

 

Bankcard Fees

 

21,527

 

17,691

 

21.7

 

 

 

 

 

Securities Gains (Losses)

 

(1,136)

 

598

 

nm

 

 

 

 

 

Other Fee Income

 

18,988

 

15,319

 

23.9

 

 

 

 

 

Other Non-Interest Income

 

18,435

 

16,311

 

13.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Income before Reimbursable Items

 

840,990

 

763,072

 

10.2

 

 

 

 

 

Reimbursable Items

 

168,638

 

148,330

 

13.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Non-Interest Income

 

1,009,628

 

911,402

 

10.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

Personnel Expense

 

461,605

 

398,425

 

15.9

 

 

 

 

 

Occupancy & Equipment Expense

 

197,195

 

175,473

 

12.4

 

 

 

 

 

Other Non-Interest Expense

 

218,770

 

202,623

 

8.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Expense before Reimbursable Items

 

877,570

 

776,521

 

13.0

 

 

 

 

 

Reimbursable Items

 

168,638

 

148,330

 

13.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Non-Interest Expense

 

1,046,208

 

924,851

 

13.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minority Interest in Consolidated Subsidiaries

 

20,905

 

18,504

 

13.0

 

 

 

 

 

Income Before Taxes

 

454,071

 

389,868

 

16.5

 

 

 

 

 

Income Tax Expense

 

166,767

 

144,674

 

15.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

287,304

 

245,194

 

17.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Share

$

0.90

 

0.79

 

14.5

 

 

 

 

 

Diluted Earnings Per Share

 

0.90

 

0.78

 

14.8

 

 

 

 

 

Dividends Declared Per Share

 

0.39

 

0.37

 

6.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Assets

 

2.02

%

1.92

 

10

bp

 

 

 

 

Return on Equity

 

18.25

 

18.12

 

13

 

 

 

 

 

Average Shares Outstanding - Basic

 

318,236

 

310,890

 

2.4

%

 

 

 

 

Average Shares Outstanding - Diluted

 

320,840

 

314,297

 

2.1

 

 

 

bp - change is measured as difference in basis points.

 

 

 

 

 

 

 

 

 

nm - not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

5 of 11

 

 

INCOME STATEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except per share data)

 

2006

 

2005

 

2nd Quarter

 

 

 

 

 

 

 

 

 

 

 

 

Second

 

First

 

Fourth

 

Third

 

Second

 

'06 vs. '05

 

 

 

 

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income (Taxable Equivalent)

$

499,191

 

440,977

 

420,898

 

388,076

 

360,763

 

38.4

%

 

 

Interest Expense

 

210,510

 

177,057

 

159,237

 

141,587

 

122,110

 

72.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income (Taxable Equivalent)

 

288,681

 

263,920

 

261,661

 

246,489

 

238,653

 

21.0

 

 

 

Tax Equivalent Adjustment

 

1,478

 

1,484

 

1,566

 

1,664

 

1,588

 

(6.9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

287,203

 

262,436

 

260,095

 

244,825

 

237,065

 

21.1

 

 

 

Provision for Loan Losses

 

18,534

 

19,549

 

20,787

 

19,639

 

22,823

 

(18.8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income After Provision

 

268,669

 

242,887

 

239,308

 

225,186

 

214,242

 

25.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electronic Payment Processing Services

 

234,519

 

220,472

 

223,844

 

223,123

 

215,784

 

8.7

 

 

 

Merchant Services

 

65,820

 

63,949

 

67,409

 

74,208

 

68,696

 

(4.2)

 

 

 

Other Transaction Processing Services Revenue

 

46,463

 

45,125

 

45,544

 

44,030

 

45,324

 

2.5

 

 

 

Service Charges on Deposits

 

29,409

 

26,712

 

28,572

 

28,598

 

28,004

 

5.0

 

 

 

Fiduciary and Asset Management Fees

 

11,509

 

11,713

 

11,544

 

11,167

 

11,138

 

3.3

 

 

 

Brokerage and Investment Banking Revenue

 

6,559

 

6,947

 

6,616

 

5,801

 

5,807

 

13.0

 

 

 

Mortgage Banking Income

 

8,105

 

5,873

 

7,078

 

8,276

 

7,430

 

9.1

 

 

 

Bankcard Fees

 

10,992

 

10,535

 

10,858

 

9,713

 

9,462

 

16.2

 

 

 

Securities Gains (Losses)

 

(1,062)

 

(73)

 

(135)

 

-

 

327

 

nm

 

 

 

Other Fee Income

 

10,038

 

8,950

 

9,377

 

8,217

 

7,834

 

28.1

 

 

 

Other Non-Interest Income

 

9,263

 

9,172

 

6,689

 

12,599

 

7,325

 

26.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Income before Reimbursable Items

 

431,615

 

409,375

 

417,396

 

425,732

 

407,131

 

6.0

 

 

 

Reimbursable Items

 

86,138

 

82,500

 

84,306

 

79,644

 

79,161

 

8.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Non-Interest Income

 

517,753

 

491,875

 

501,702

 

505,376

 

486,292

 

6.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel Expense

 

233,847

 

227,758

 

224,251

 

213,695

 

208,596

 

12.1

 

 

 

Occupancy & Equipment Expense

 

99,495

 

97,700

 

93,965

 

98,772

 

88,839

 

12.0

 

 

 

Other Non-Interest Expense

 

112,934

 

105,836

 

110,608

 

113,300

 

110,015

 

2.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Expense before Reimbursable Items

 

446,276

 

431,294

 

428,824

 

425,767

 

407,450

 

9.5

 

 

 

Reimbursable Items

 

86,138

 

82,500

 

84,306

 

79,644

 

79,161

 

8.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Non-Interest Expense

 

532,414

 

513,794

 

513,130

 

505,411

 

486,611

 

9.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minority Interest in Consolidated Subsidiaries

 

11,165

 

9,740

 

9,571

 

9,306

 

9,672

 

15.4

 

 

 

Income Before Taxes

 

242,843

 

211,228

 

218,309

 

215,845

 

204,251

 

18.9

 

 

 

Income Tax Expense

 

90,046

 

76,722

 

81,049

 

81,853

 

75,791

 

18.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

152,797

 

134,506

 

137,260

 

133,992

 

128,460

 

18.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Share

$

0.47

 

0.43

 

0.44

 

0.43

 

0.41

 

14.7

 

 

 

Diluted Earnings Per Share

 

0.47

 

0.43

 

0.44

 

0.43

 

0.41

 

15.0

 

 

 

Dividends Declared Per Share

 

0.20

 

0.20

 

0.18

 

0.18

 

0.18

 

6.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Assets

 

2.07

%

1.96

%

2.00

%

2.01

%

1.98

%

9

bp

 

 

Return on Equity

 

18.45

 

17.88

 

18.74

 

18.77

 

18.70

 

(25)

 

 

 

Average Shares Outstanding - Basic

 

322,783

 

313,639

 

312,298

 

311,842

 

311,154

 

3.7

%

 

 

Average Shares Outstanding - Diluted

 

325,421

 

316,208

 

315,280

 

315,336

 

314,691

 

3.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2006

 

2005

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income (Taxable Equivalent)

$

940,153

 

693,716

 

35.5

%

 

 

 

 

Interest Expense

 

391,043

 

227,956

 

71.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income (Taxable Equivalent)

 

549,110

 

465,760

 

17.9

 

 

 

 

 

Tax Equivalent Adjustment

 

2,947

 

3,199

 

(7.9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

546,163

 

462,561

 

18.1

 

 

 

 

 

Provision for Loan Losses

 

38,083

 

42,106

 

(9.6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income After Provision

 

508,080

 

420,455

 

20.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Income:

 

 

 

 

 

 

 

 

 

 

 

Service Charges on Deposits

 

56,123

 

54,994

 

2.1

 

 

 

 

 

Fiduciary and Asset Management Fees

 

23,629

 

22,368

 

5.6

 

 

 

 

 

Brokerage and Investment Banking Revenue

 

13,506

 

12,070

 

11.9

 

 

 

 

 

Mortgage Banking Income

 

13,978

 

13,328

 

4.9

 

 

 

 

 

Bankcard Fees

 

21,527

 

17,691

 

21.7

 

 

 

 

 

Securities Gains (Losses)

 

(1,136)

 

598

 

nm

 

 

 

 

 

Other Fee Income

 

18,988

 

15,319

 

23.9

 

 

 

 

 

Other Non-Interest Income

 

25,902

 

18,848

 

37.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Non-Interest Income

 

172,517

 

155,216

 

11.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

Personnel Expense

 

221,400

 

181,468

 

22.0

 

 

 

 

 

Occupancy & Equipment Expense

 

48,333

 

43,259

 

11.7

 

 

 

 

 

Other Non-Interest Expense

 

100,063

 

90,861

 

10.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Non-Interest Expense

 

369,796

 

315,588

 

17.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Taxes

 

310,801

 

260,083

 

19.5

 

 

 

 

 

Income Tax Expense

 

110,656

 

93,263

 

18.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

200,145

 

166,820

 

20.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Assets

 

1.47

%

1.37

 

10

bp

 

 

 

 

Return on Equity

 

17.38

 

16.81

 

57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

bp - change is measured as difference in basis points.

 

 

 

 

 

 

 

 

 

 

nm - not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

7 of 11

 

 

Financial Services Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

2006

 

2005

 

2nd Quarter

 

 

 

 

 

 

 

 

 

 

 

 

Second

 

First

 

Fourth

 

Third

 

Second

 

'06 vs. '05

 

 

 

 

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income (Taxable Equivalent)

$

499,184

 

440,969

 

420,892

 

388,067

 

360,789

 

38.4

%

 

 

Interest Expense

 

212,499

 

178,544

 

160,509

 

142,582

 

122,768

 

73.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income (Taxable Equivalent)

 

286,685

 

262,425

 

260,383

 

245,485

 

238,021

 

20.4

 

 

 

Tax Equivalent Adjustment

 

1,471

 

1,476

 

1,558

 

1,655

 

1,585

 

(7.2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

285,214

 

260,949

 

258,825

 

243,830

 

236,436

 

20.6

 

 

 

Provision for Loan Losses

 

18,534

 

19,549

 

20,787

 

19,639

 

22,823

 

(18.8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income After Provision

 

266,680

 

241,400

 

238,038

 

224,191

 

213,613

 

24.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service Charges on Deposits

 

29,409

 

26,712

 

28,572

 

28,598

 

28,004

 

5.0

 

 

 

Fiduciary and Asset Management Fees

 

11,720

 

11,910

 

11,728

 

11,357

 

11,324

 

3.5

 

 

 

Brokerage and Investment Banking Revenue

 

6,559

 

6,947

 

6,616

 

5,801

 

5,807

 

13.0

 

 

 

Mortgage Banking Income

 

8,105

 

5,873

 

7,078

 

8,276

 

7,430

 

9.1

 

 

 

Bankcard Fees

 

10,992

 

10,535

 

10,858

 

9,713

 

9,462

 

16.2

 

 

 

Securities Gains (Losses)

 

(1,062)

 

(73)

 

(135)

 

-

 

327

 

nm

 

 

 

Other Fee Income

 

10,038

 

8,950

 

9,377

 

8,216

 

7,834

 

28.1

 

 

 

Other Non-Interest Income

 

13,692

 

12,211

 

10,884

 

15,259

 

10,457

 

30.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Non-Interest Income

 

89,453

 

83,064

 

84,978

 

87,220

 

80,645

 

10.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel Expense

 

113,951

 

107,449

 

95,670

 

93,084

 

90,721

 

25.6

 

 

 

Occupancy & Equipment Expense

 

24,835

 

23,498

 

24,577

 

22,713

 

21,712

 

14.4

 

 

 

Other Non-Interest Expense

 

52,064

 

47,999

 

49,768

 

45,356

 

45,320

 

14.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Non-Interest Expense

 

190,850

 

178,946

 

170,015

 

161,153

 

157,753

 

21.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Taxes

 

165,283

 

145,518

 

153,001

 

150,258

 

136,505

 

21.1

 

 

 

Income Tax Expense

 

58,899

 

51,757

 

55,949

 

55,079

 

49,060

 

20.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

106,384

 

93,761

 

97,052

 

95,179

 

87,445

 

21.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Assets

 

1.50

%

1.43

%

1.47

%

1.49

%

1.41

%

9

bp

 

 

Return on Equity

 

17.42

 

17.17

 

18.30

 

18.34

 

17.41

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

bp - change is measured as difference in basis points.

 

 

 

 

 

 

 

 

 

 

 

 

nm - not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Synovus

 

 

 

 

 

8 of 11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET

 

June 30,

2006

 

December 31,

2005

 

June 30,

2005

 

 

 

 

(in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

887,154

 

880,886

 

811,781

 

 

 

 

Interest earning deposits with banks

 

11,885

 

2,980

 

14,270

 

 

 

 

Federal funds sold and securities purchased

 

 

 

 

 

 

 

 

 

 

under resale agreements

 

203,631

 

68,922

 

344,958

 

 

 

 

Trading account assets

 

46,939

 

27,322

 

-

 

 

 

 

Mortgage loans held for sale

 

170,650

 

143,144

 

155,977

 

 

 

 

Investment securities available for sale

 

3,137,486

 

2,958,320

 

2,756,365

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net of unearned income

 

23,661,964

 

21,392,347

 

20,479,834

 

 

 

 

Allowance for loan losses

 

(313,694)

 

(289,612)

 

(277,527)

 

 

 

 

Loans, net

 

23,348,270

 

21,102,735

 

20,202,307

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premises and equipment, net

 

707,988

 

669,425

 

657,765

 

 

 

 

Contract acquisition costs and computer software, net

 

406,793

 

431,849

 

450,352

 

 

 

 

Goodwill, net

 

607,501

 

458,382

 

457,946

 

 

 

 

Other intangible assets, net

 

52,894

 

44,867

 

49,232

 

 

 

 

Other assets

 

945,897

 

831,840

 

812,341

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

30,527,088

 

27,620,672

 

26,713,294

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

Non-interest bearing retail and commercial deposits

$

3,806,277

 

3,700,750

 

3,474,299

 

 

 

 

Interest bearing retail and commercial deposits

 

16,124,042

 

14,798,845

 

13,962,080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total retail and commercial deposits

 

19,930,319

 

18,499,595

 

17,436,379

 

 

 

 

Brokered time deposits

 

3,123,380

 

2,284,770

 

2,670,099

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits

 

23,053,699

 

20,784,365

 

20,106,478

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds purchased and other short-term

 

 

 

 

 

 

 

 

 

 

borrowings

 

1,974,272

 

1,158,669

 

724,445

 

 

 

 

Long-term debt

 

1,421,578

 

1,933,638

 

2,335,688

 

 

 

 

Other liabilities

 

488,559

 

597,698

 

570,914

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

26,938,108

 

24,474,370

 

23,737,525

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minority interest in consolidated subsidiaries

 

215,521

 

196,973

 

181,957

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

Common stock, par value $1.00 a share (1)

 

329,097

 

318,301

 

317,181

 

 

 

 

Surplus

 

960,054

 

686,447

 

660,052

 

 

 

 

Treasury stock (2)

 

(113,944)

 

(113,944)

 

(113,944)

 

 

 

 

Unearned compensation

 

-

 

(3,126)

 

(2,942)

 

 

 

 

Accumulated other comprehensive income (loss)

 

(54,783)

 

(29,536)

 

(517)

 

 

 

 

Retained earnings

 

2,253,035

 

2,091,187

 

1,933,982

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders' equity (3)

 

3,373,459

 

2,949,329

 

2,793,812

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

30,527,088

 

27,620,672

 

26,713,294

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Common shares outstanding: 323,435,831; 312,639,737; and 311,519,262 at June 30, 2006, December 31, 2005, and June 30, 2005, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2)

Treasury shares: 5,661,538 at June 30, 2006, December 31, 2005, and June 30, 2005.

 

 

 

 

 

 

(3)

Book value per share: $10.43; $9.43; and $8.97 at June 30, 2006, December 31, 2005, and June 30, 2005, respectively.

 

 

 

 

 

 

 

Synovus

 

 

 

 

 

 

9 of 11

 

AVERAGE BALANCES AND YIELDS/RATES

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

2006

2005

 

 

 

 

 

 

Second

 

First

Fourth

Third

Second

 

 

 

 

 

 

Quarter

 

Quarter

Quarter

Quarter

Quarter

 

 

 

Interest Earning Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable Investment Securities

$

3,008,122

 

2,823,306

2,713,238

2,611,048

2,556,964

 

 

 

 

Yield

 

4.21

%

4.08

3.87

3.75

3.78

 

 

 

Tax-Exempt Investment Securities

$

202,676

 

201,432

208,265

215,096

220,109

 

 

 

 

Yield

 

6.73

%

6.86

6.90

7.08

6.87

 

 

 

Trading Account Assets

$

47,398

 

37,659

26,006

19,143

-

 

 

 

 

Yield

 

5.72

%

7.42

6.97

3.84

-

 

 

 

Commercial Loans

$

19,746,392

 

18,377,498

17,881,828

17,342,794

17,090,893

 

 

 

 

Yield

 

7.98

%

7.58

7.25

6.83

6.47

 

 

 

Consumer Loans

$

875,171

 

835,520

845,251

840,746

833,071

 

 

 

 

Yield

 

8.09

%

7.89

7.87

7.83

7.37

 

 

 

Mortgage Loans

$

1,071,477

 

1,039,741

1,036,041

1,015,396

1,022,169

 

 

 

 

Yield

 

6.82

%

6.67

6.44

6.31

6.47

 

 

 

Credit Card Loans

$

260,010

 

260,251

257,691

253,985

249,491

 

 

 

 

Yield

 

10.81

%

10.81

10.19

10.07

10.03

 

 

 

Home Equity Loans

$

1,231,592

 

1,188,153

1,167,361

1,149,255

1,100,010

 

 

 

 

Yield

 

7.69

%

7.30

6.85

6.32

5.92

 

 

 

Allowance for Loan Losses

$

(307,674)

 

(294,817)

(286,846)

(281,505)

(278,734)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, Net

$

22,876,968

 

21,406,345

20,901,326

20,320,671

20,016,900

 

 

 

 

Yield

 

8.06

%

7.67

7.35

6.95

6.61

 

 

 

Mortgage Loans Held for Sale

$

132,605

 

117,085

121,665

137,116

108,929

 

 

 

 

Yield

 

7.08

%

6.61

6.48

6.54

6.41

 

 

 

Federal Funds Sold and Time Deposits

 

 

 

 

 

 

 

 

 

 

with Banks

$

139,924

 

118,772

119,606

135,735

133,399

 

 

 

 

Yield

 

5.07

%

4.42

4.26

3.55

3.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Interest Earning Assets

$

26,407,692

 

24,704,601

24,090,106

23,438,809

23,036,301

 

 

 

 

Yield

 

7.58

%

7.23

6.94

6.58

6.28

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Bearing Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Bearing Demand Deposits

$

3,040,292

 

3,004,244

2,989,754

2,939,524

2,990,725

 

 

 

 

Rate

 

1.81

%

1.63

1.39

1.25

1.12

 

 

 

Money Market Accounts

$

6,196,865

 

5,800,154

5,619,551

5,421,961

4,968,113

 

 

 

 

Rate

 

4.00

%

3.55

3.13

2.75

2.31

 

 

 

Savings Deposits

$

573,776

 

535,475

534,533

561,550

568,279

 

 

 

 

Rate

 

0.69

%

0.47

0.40

0.38

0.35

 

 

 

Time Deposits Under $100,000

$

2,738,528

 

2,501,504

2,408,591

2,318,085

2,249,590

 

 

 

 

Rate

 

3.92

%

3.55

3.28

2.99

2.71

 

 

 

Time Deposits Over $100,000 (less brokered

 

 

 

 

 

 

 

 

 

time deposits)

$

3,362,304

 

3,067,094

2,864,382

2,700,297

2,534,846

 

 

 

 

Rate

 

4.44

%

4.01

3.67

3.35

3.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Interest Bearing Core Deposits

 

15,911,765

 

14,908,471

14,416,811

13,941,417

13,311,553

 

 

 

 

Rate

 

3.54

%

3.15

2.80

2.50

2.16

 

 

 

Brokered Time Deposits

$

2,740,674

 

2,364,383

2,443,105

2,611,091

2,689,079

 

 

 

 

Rate

 

4.57

%

4.24

3.89

3.52

3.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Interest Bearing Deposits

$

18,652,438

 

17,272,854

16,859,916

16,552,508

16,000,632

 

 

 

 

Rate

 

3.69

%

3.30

2.96

2.66

2.34

 

 

 

Federal Funds Purchased and Other

 

 

 

 

 

 

 

 

 

 

Short-Term Borrowings

$

1,772,113

 

1,530,099

939,008

687,055

1,255,755

 

 

 

 

Rate

 

4.76

%

4.28

3.72

3.03

2.75

 

 

 

Long-Term Debt

$

1,586,586

 

1,774,804

2,184,538

2,302,328

1,981,235

 

 

 

 

Rate

 

4.42

%

4.62

4.44

4.34

4.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Interest Bearing Liabilities

$

22,011,138

 

20,577,757

19,983,462

19,541,891

19,237,622

 

 

 

 

Rate

 

3.83

%

3.48

3.16

2.87

2.54

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Bearing Demand Deposits

$

3,511,554

 

3,443,867

3,509,219

3,423,622

3,429,813

 

 

 

Shareholders' Equity

$

3,321,397

 

3,050,256

2,906,223

2,832,059

2,755,510

 

 

 

Total Assets

$

29,563,064

 

27,792,577

27,164,366

26,505,937

26,102,816

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin

 

4.39

%

4.32

4.32

4.18

4.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

10 of 11

 

 

LOANS OUTSTANDING AND NONPERFORMING LOANS COMPOSITION

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

528,278

 

2.2

%

$

214

 

0.2

 

 

Hotels

 

674,971

 

2.9

 

 

1,485

 

1.7

 

 

Office Buildings

 

850,826

 

3.6

 

 

3,928

 

4.4

 

 

Shopping Centers

 

692,452

 

2.9

 

 

-

 

-

 

 

Commercial Development

 

942,220

 

4.0

 

 

1,795

 

2.0

 

 

Other Investment Property

 

409,371

 

1.7

 

 

74

 

0.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Properties

 

4,098,118

 

17.3

 

 

7,496

 

8.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 Family Construction

 

2,120,870

 

9.0

 

 

2,349

 

2.6

 

 

1-4 Family Perm / Mini-Perm

 

1,180,088

 

5.0

 

 

5,438

 

6.1

 

 

Residential Development

 

1,882,508

 

8.0

 

 

1,293

 

1.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total 1-4 Family Properties

 

5,183,466

 

21.9

 

 

9,080

 

10.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land Acquisition

 

1,205,548

 

5.1

 

 

4,934

 

5.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment-Related Real Estate

 

10,487,132

 

44.3

 

 

21,510

 

24.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner-Occupied

 

2,940,952

 

12.4

 

 

10,047

 

11.3

 

 

Other Property

 

1,221,842

 

5.2

 

 

5,053

 

5.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Commercial Real Estate

 

14,649,926

 

61.9

 

 

36,610

 

41.2

 

 

Commercial & Industrial

 

5,547,533

 

23.4

 

 

43,291

 

48.8

 

 

Consumer

 

3,516,804

 

14.9

 

 

8,904

 

10.0

 

 

Unearned Income

 

(52,299)

 

(0.2)

 

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

23,661,964

 

100.0

%

$

88,805

 

100.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOANS OUTSTANDING BY TYPE COMPARISON

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans

 

2Q06 vs. 4Q05

 

 

 

 

2Q06 vs. 2Q05

 

 

Loan Type

 

June 30,

2006

 

December

31, 2005

 

% change (1) (2)

 

 

June 30, 2005

 

% change (2)

 

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi-Family

$

528,278

 

527,710

 

0.2

%

$

526,820

 

0.3

%

 

Hotels

 

674,971

 

680,301

 

(1.6)

 

 

804,316

 

(16.1)

 

 

Office Buildings

 

850,826

 

747,493

 

27.9

 

 

786,262

 

8.2

 

 

Shopping Centers

 

692,452

 

656,949

 

10.9

 

 

628,701

 

10.1

 

 

Commercial Development

 

942,220

 

867,217

 

17.9

 

 

803,494

 

17.3

 

 

Other Investment Property

 

409,371

 

372,911

 

19.7

 

 

330,992

 

23.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Properties

 

4,098,118

 

3,852,581

 

12.9

 

 

3,880,585

 

5.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 Family Construction

 

2,120,870

 

1,552,338

 

73.9

 

 

1,372,556

 

54.5

 

 

1-4 Family Perm / Mini-Perm

 

1,180,088

 

1,095,155

 

15.6

 

 

1,087,763

 

8.5

 

 

Residential Development

 

1,882,508

 

1,496,436

 

52.0

 

 

1,219,186

 

54.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total 1-4 Family Properties

 

5,183,466

 

4,143,929

 

50.6

 

 

3,679,505

 

40.9

 

 

Land Acquisition

 

1,205,548

 

1,049,041

 

30.1

 

 

913,488

 

32.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment-Related Real Estate

 

10,487,132

 

9,045,551

 

32.1

 

 

8,473,578

 

23.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner-Occupied

 

2,940,952

 

2,699,431

 

18.0

 

 

2,335,195

 

25.9

 

 

Other Property

 

1,221,842

 

1,115,094

 

19.3

 

 

1,202,920

 

1.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Commercial Real Estate

 

14,649,926

 

12,860,076

 

28.1

 

 

12,011,693

 

22.0

 

 

Commercial & Industrial

 

5,547,533

 

5,231,150

 

12.2

 

 

5,210,170

 

6.5

 

 

Consumer

 

3,516,804

 

3,349,208

 

10.1

 

 

3,301,736

 

6.5

 

 

Unearned Income

 

(52,299)

 

(48,087)

 

17.7

 

 

(43,765)

 

19.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

23,661,964

 

21,392,347

 

21.4

%

$

20,479,834

 

15.5

%

 

(1)

Percentage change is annualized.

 

 

(2)

The percentage change comparison to prior periods is impacted by the acquisitions of Riverside Bankshares, Inc. (Riverside) and of Banking Corporation of Florida (First Florida),
which were completed on March 31, 2006, respectively. Riverside and First Florida contributed approximately $482 million and $346 million, respectively, in total loans.
Excluding the impact of Riverside and First Florida, the year-to-date annualized growth is 13.6% and the year-over-year growth is 11.5%.

 

 

 

 

Synovus

 

 

 

 

 

 

 

 

 

 

 

11 of 11

 

CREDIT QUALITY DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

2006

 

2005

 

2nd Quarter

 

 

 

Second

Quarter

 

First

Quarter

 

Fourth

Quarter

 

Third

Quarter

 

Second

Quarter

 

'06 vs. '05

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming Loans

$

88,805

 

80,061

 

82,175

 

85,571

 

79,511

 

11.7

%

 

Other Real Estate

 

25,634

 

20,357

 

16,500

 

16,951

 

24,325

 

5.4

 

 

Nonperforming Assets

 

114,439

 

100,418

 

98,675

 

102,522

 

103,836

 

10.2

 

 

Allowance for Loan Losses

 

313,694

 

300,866

 

289,612

 

283,557

 

277,527

 

13.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Charge-Offs - Quarter

 

9,528

 

14,388

 

14,732

 

13,608

 

19,020

 

(49.9)

 

 

Net Charge-Offs - YTD

 

23,916

 

14,388

 

58,665

 

43,933

 

30,325

 

(21.1)

 

 

Net Charge-Offs / Average Loans - Quarter

 

0.17

 

0.27

 

0.28

 

0.26

 

0.37

 

 

 

 

Net Charge-Offs / Average Loans - YTD

 

0.21

 

0.27

 

0.29

 

0.29

 

0.30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming Loans / Loans & ORE

 

0.38

 

0.36

 

0.38

 

0.41

 

0.39

 

 

 

 

Nonperforming Assets / Loans & ORE

 

0.48

 

0.45

 

0.46

 

0.49

 

0.51

 

 

 

 

Allowance / Loans

 

1.33

 

1.34

 

1.35

 

1.36

 

1.36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance / Nonperforming Loans

 

353.24

 

375.79

 

352.43

 

331.37

 

349.04

 

 

 

 

Allowance / Nonperforming Assets

 

274.11

 

299.61

 

293.50

 

276.58

 

267.27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past Due Loans over 90 days

 

19,340

 

17,376

 

16,023

 

16,013

 

17,163

 

 

 

 

As a Percentage of Loans Outstanding

 

0.08

 

0.08

 

0.07

 

0.08

 

0.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Past Dues

 

111,464

 

114,744

 

93,807

 

103,005

 

120,224

 

 

 

 

As a Percentage of Loans Outstanding

 

0.47

 

0.51

 

0.44

 

0.49

 

0.59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REGULATORY CAPITAL RATIOS (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

2006

 

December 31,

2005

 

June 30,

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital

$

3,000,714

 

2,660,704

 

2,492,549

 

 

 

 

 

 

 

 

 

 

Total Risk-Based Capital

 

4,064,409

 

3,700,315

 

3,520,075

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital Ratio

 

10.40

%

10.23

 

9.96

 

 

 

 

 

 

 

 

 

 

Total Risk-Based Capital Ratio

 

14.09

 

14.23

 

14.07

 

 

 

 

 

 

 

 

 

 

Leverage Ratio

 

10.39

 

9.99

 

9.74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

June 30, 2006 information is preliminary.