EX-99.2 3 g22964exv99w2.htm EX-99.2 exv99w2
Exhibit 99.2
Synovus
INCOME STATEMENT DATA
(Unaudited)

(Dollars in thousands, except per share data)
                                                 
    2010             2009             1st Quarter  
    First     Fourth     Third     Second     First     ‘10 vs. ’09  
    Quarter     Quarter     Quarter     Quarter     Quarter     Change  
Interest income (taxable equivalent)
  $ 343,906       362,911       377,839       385,710       387,574       (11.3) %
Interest expense
    93,928       105,853       121,989       127,883       143,154       (34.4 )
 
                                   
 
                                               
Net interest income (taxable equivalent)
    249,978       257,058       255,850       257,827       244,420       2.3  
Tax equivalent adjustment
    1,111       1,227       1,219       1,219       1,181       (5.9 )
 
                                   
 
                                               
Net interest income
    248,867       255,831       254,631       256,608       243,239       2.3  
Provision for losses on loans
    340,948       387,114       496,522       631,526       290,437       17.4  
 
                                   
 
                                               
Net interest expense after provision for loan losses
    (92,081 )     (131,283 )     (241,891 )     (374,918 )     (47,198 )     (95.1 )
 
                                   
 
                                               
Non-interest income:
                                               
Service charges on deposit accounts
    26,280       29,651       29,699       29,702       28,699       (8.4 )
Fiduciary and asset management fees
    11,338       11,455       11,244       10,657       10,815       4.8  
Brokerage and investment banking income
    5,931       7,035       7,047       7,521       6,871       (13.7 )
Mortgage banking income
    5,814       7,572       7,037       14,590       9,322       (37.6 )
Bankcard fees
    9,515       9,521       9,114       9,144       8,361       13.8  
Investment securities (losses) gains
    (448 )     (663 )     14,730                 nm  
Other fee income
    5,530       7,055       7,733       8,722       7,690       (28.1 )
Increase (decrease) in fair value of private equity investments, net
    899       142       (6,853 )     8,090           nm  
Gain from sale of MasterCard shares
                      8,351           nm  
Gain from sale of Visa shares
          51,900                       nm  
Other non-interest income
    4,839       13,179       6,484       6,425       12,627       (61.7 )
 
                                   
Total non-interest income
    69,698       136,847       86,235       103,202       84,385       (17.4 )
 
                                   
 
                                               
Non-interest expense:
                                               
Salaries and other personnel expense
    104,022       100,575       105,001       108,508       111,085       (6.4 )
Net occupancy and equipment expense
    29,978       29,861       31,217       30,544       31,484       (4.8 )
FDIC insurance and other regulatory fees
    17,646       17,913       15,341       30,061       12,999       35.7  
Foreclosed real estate expense
    45,507       34,098       101,437       172,404       46,330       (1.8 )
Gains (losses) on other loans held for sale
    61             608       1,160       (65 )     193.8  
Visa litigation recovery
          (2,374 )     (4,067 )               nm  
Goodwill impairment
          14,849             241           nm  
Professional fees
    9,380       10,397       11,121       10,340       6,945       35.1  
Data processing expense
    10,683       11,615       11,194       11,166       11,155       (4.2 )
Restructuring charges
          (347 )     (413 )     397       6,358     nm  
Other operating expenses
    35,520       32,906       45,381       29,114       34,748       2.2  
 
                                   
 
                                               
Total non-interest expense
    252,797       249,493       316,820       393,935       261,039       (3.2 )
 
                                   
 
                                               
Loss from continuing operations before income taxes
    (275,180 )     (243,929 )     (472,476 )     (665,651 )     (223,852 )     (22.9 )
Income tax (benefit) expense
    (16,337 )     25,518       (31,528 )     (80,059 )     (85,908 )     81.0  
 
                                   
 
                                               
Loss from continuing operations
    (258,843 )     (269,447 )     (440,948 )     (585,592 )     (137,944 )     (87.6 )
 
                                               
Income from discontinued operations, net of taxes
    43,161       889       1,146       1,340       1,215     nm  
 
                                   
 
                                               
Net loss
    (215,682 )     (268,558 )     (439,802 )     (584,252 )     (136,729 )     (57.7 )
Net (loss) income attributable to non-controlling interest
    (209 )     (1 )     (255 )     2,677       (57 )     (266.7 )
 
                                   
 
                                               
Net loss attributable to controlling interest
    (215,473 )     (268,557 )     (439,547 )     (586,929 )     (136,672 )     (57.7 )
 
                                   
 
                                               
Dividends and accretion of discount on preferred stock
    14,325       14,291       14,258       14,225       14,192       0.9  
 
                                   
 
                                               
Net loss available to common shareholders
  $ (229,798 )     (282,848 )     (453,805 )     (601,154 )     (150,864 )     (52.3 )
 
                                   
Basic EPS
                                               
Net income (loss) from continuing operations available to common shareholders
  $ (0.56 )     (0.58 )     (1.32 )     (1.83 )     (0.46 )     (20.9) %
Net income (loss) available to common shareholders
    (0.47 )     (0.58 )     (1.32 )     (1.82 )     (0.46 )     (2.6 )
 
                                               
Diluted EPS
                                               
Net income (loss) from continuing operations available to common shareholders
    (0.56 )     (0.58 )     (1.32 )     (1.83 )     (0.46 )     (20.9 )
Net income (loss) available to common shareholders
    (0.47 )     (0.58 )     (1.32 )     (1.82 )     (0.46 )     (2.6 )
 
                                               
Cash dividends declared per common share
    0.01       0.01       0.01       0.01       0.01        
 
                                               
Return on average assets *
    (3.22) %     (3.18 )     (5.13 )     (6.77 )     (1.59 )     (163 )bp 
Return on average common equity *
    (59.10 )     (53.25 )     (90.59 )     (92.07 )     (22.07 )   nm  
 
                                               
Average common shares outstanding — basic
    489,607       486,104       344,626       329,850       329,785       48.5 %
Average common shares outstanding — diluted
    489,607       486,104       344,626       329,850       329,785       48.5  
 
nm    - not meaningful
 
*   - ratios are annualized

5 of 9


 

Synovus
BALANCE SHEET DATA
(Unaudited)
(In thousands, except share data)
                         
    March 31, 2010     December 31, 2009     March 31, 2009  
ASSETS
                       
 
                       
Cash and due from banks
  $ 579,620       564,482       437,788  
Interest bearing funds with Federal Reserve Bank
    2,826,702       1,901,847       362,038  
Interest earning deposits with banks
    12,817       12,534       95,757  
Federal funds sold and securities purchased under resale agreements
    166,392       203,959       155,549  
Trading account assets, at fair value
    13,605       14,370       15,013  
Mortgage loans held for sale, at fair value
    112,989       138,056       223,093  
Other loans held for sale
    78,077       36,816       22,751  
Investment securities available for sale, at fair value
    3,237,519       3,188,735       3,778,473  
Loans, net of unearned income
    24,417,164       25,383,068       27,730,272  
Allowance for loan losses
    (968,697 )     (943,725 )     (642,422 )
 
                 
Loans, net
    23,448,467       24,439,343       27,087,850  
 
                 
Premises and equipment, net
    572,815       580,375       603,555  
Goodwill
    24,431       24,431       39,521  
Other intangible assets, net
    15,556       16,649       20,064  
Other assets
    1,350,448       1,709,821       1,705,980  
 
                 
 
                       
Total assets
  $ 32,439,438       32,831,418       34,547,432  
 
                 
 
                       
LIABILITIES AND EQUITY
                       
Liabilities:
                       
Deposits:
                       
Non-interest bearing deposits
  $ 4,352,327       4,172,697       3,785,089  
Interest bearing deposits
    22,827,721       23,260,836       24,162,897  
 
                 
Total deposits
    27,180,048       27,433,533       27,947,986  
 
                       
Federal funds purchased and other short-term borrowings
    450,979       475,062       577,269  
Long-term debt
    1,868,343       1,751,592       1,869,884  
Other liabilities
    301,615       299,730       480,895  
 
                 
Total liabilities
    29,800,985       29,959,917       30,876,034  
 
                 
 
                       
Equity:
                       
Shareholders’ equity:
                       
Cumulative perpetual preferred stock, no par value (1)
    930,433       928,207       921,728  
Common stock, par value $1.00 (2)
    495,536       495,514       336,069  
Additional paid-in capital
    1,607,140       1,605,097       1,168,409  
Treasury stock, at cost (3)
    (114,174 )     (114,155 )     (114,139 )
Accumulated other comprehensive income
    80,722       84,806       125,013  
Accumulated (deficit) retained earnings
    (382,914 )     (148,428 )     1,200,899  
 
                 
Total shareholders’ equity
    2,616,743       2,851,041       3,637,979  
Non-controlling interest in subsidiaries
    21,710       20,460       33,419  
 
                 
Total equity
    2,638,453       2,871,501       3,671,398  
 
                 
 
                       
Total liabilities and equity
  $ 32,439,438       32,831,418       34,547,432  
 
                 
 
(1)   Preferred shares outstanding: 967,870
 
(2)   Common shares outstanding: 489,843,709; 489,828,319; and 330,386,502 at March 31, 2010, December 31, 2009, and
 
    March 31, 2009, respectively.
 
(3)   Treasury shares: 5,692,422; 5,685,638; and 5,682,301 at March 31, 2010, December 31, 2009, and March 31, 2009, respectively.

6 of 9


 

Synovus
AVERAGE BALANCES AND YIELDS/RATES *
(Unaudited)

(Dollars in thousands)
                                         
    2010     2009  
    First     Fourth     Third     Second     First  
    Quarter     Quarter     Quarter     Quarter     Quarter  
Interest Earning Assets
                                       
 
                       
Taxable investment securities
  $ 2,952,188       2,983,914       3,209,718       3,353,382       3,455,091  
Yield
    4.70 %     4.79       5.06       5.16       5.22  
Tax-exempt investment securities
  $ 72,041       88,848       98,435       107,626       116,163  
Yield (taxable equivalent)
    7.16 %     7.03       7.06       7.08       6.91  
Trading account assets
  $ 14,881       14,356       13,439       19,984       22,580  
Yield
    5.30 %     5.60       8.22       5.57       6.02  
Commercial loans
  $ 20,880,069       21,722,140       22,850,126       23,572,578       23,525,450  
Yield
    4.85 %     4.82       4.73       4.72       4.77  
Consumer loans
  $ 4,174,320       4,249,316       4,303,592       4,335,897       4,353,580  
Yield
    5.36 %     5.32       5.37       5.38       5.50  
Allowance for loan losses
  $ (951,552 )     (906,484 )     (905,700 )     (663,355 )     (627,110 )
 
                             
Loans, net
  $ 24,102,837       25,064,972       26,248,018       27,245,120       27,251,920  
Yield
    5.15 %     5.10       5.01       4.96       5.01  
Mortgage loans held for sale
  $ 96,440       114,906       194,158       268,933       247,937  
Yield
    5.49 %     5.29       5.39       4.94       5.46  
Federal funds sold, due from Federal Reserve Bank and other short-term investments
  $ 2,435,880       2,995,367       1,653,546       996,754       1,214,897  
Yield
    0.24 %     0.24       0.24       0.24       0.31  
Federal Home Loan Bank and Federal Reserve Bank stock (1)
  $ 142,524       140,550       139,230       132,346       117,205  
Yield
    0.97 %     1.01       1.38       0.54       0.66  
 
                             
Total interest earning assets
  $ 29,816,791       31,402,913       31,556,544       32,124,145       32,425,793  
Yield
    4.67 %     4.59       4.76       4.83       4.84  
 
                             
 
                                       
Interest Bearing Liabilities
                                       
 
                                       
Interest bearing demand deposits
  $ 3,636,437       3,851,237       3,310,924       3,582,954       3,602,371  
Rate
    0.42 %     0.41       0.42       0.45       0.49  
Money market accounts
  $ 6,450,696       6,420,003       6,309,578       6,241,764       6,272,015  
Rate
    1.19 %     1.21       1.23       1.24       1.30  
Savings deposits
  $ 476,007       469,526       477,909       477,752       452,206  
Rate
    0.15 %     0.15       0.15       0.15       0.16  
Time deposits under $100,000
  $ 2,726,002       2,851,913       3,030,346       3,126,984       3,222,601  
Rate
    2.17 %     2.44       2.86       3.13       3.41  
Time deposits over $100,000
  $ 4,770,429       4,909,253       5,281,529       5,355,736       5,555,084  
Rate
    2.05 %     2.32       2.73       3.04       3.31  
National market brokered money market accounts
  $ 1,047,417       1,218,363       1,365,477       1,885,214       2,073,734  
Rate
    0.74 %     0.75       0.77       0.75       0.82  
National market brokered time deposits
  $ 3,871,581       4,011,648       3,941,977       3,203,546       3,718,570  
Rate
    2.13 %     2.41       2.66       3.09       3.38  
 
                             
Total interest bearing deposits
  $ 22,978,569       23,731,943       23,717,740       23,873,950       24,896,581  
Rate
    1.48 %     1.62       1.85       1.96       2.16  
Federal funds purchased and other short-term liabilities
  $ 472,691       729,988       1,194,759       1,166,785       578,717  
Rate
    0.47 %     0.45       0.37       0.36       0.59  
Long-term debt
  $ 1,805,363       1,897,915       1,906,320       2,090,710       1,964,064  
Rate
    2.17 %     1.75       2.14       1.94       2.07  
 
                             
Total interest bearing liabilities
  $ 25,256,623       26,359,846       26,818,819       27,131,445       27,439,362  
Rate
    1.51 %     1.59       1.80       1.89       2.11  
 
                             
Non-interest bearing demand deposits
  $ 4,243,622       4,162,027       4,069,108       3,812,876       3,611,958  
 
                             
Net interest margin
    3.39 %     3.25       3.22       3.23       3.05  
 
                             
 
*   Yields and rates are annualized.
 
(1)   Included as a component of Other Assets on the balance sheet

7 of 9


 

Synovus
LOANS OUTSTANDING AND NONPERFORMING LOANS COMPOSITION
(Unaudited)

(Dollars in thousands)
                                 
    March 31, 2010  
            Loans as a %     Total     Nonperforming Loans  
            of Total Loans     Nonperforming     as a % of Total  
Loan Type   Total Loans     Outstanding     Loans     Nonperforming Loans  
Multi-Family
  $ 917,478       3.8 %   $ 12,048       0.8 %
Hotels
    1,064,300       4.4       228,402       14.8  
Office Buildings
    1,018,060       4.2       17,996       1.2  
Shopping Centers
    1,126,052       4.6       28,183       1.8  
Commercial Development
    510,340       2.1       71,509       4.6  
Warehouses
    521,933       2.1       5,776       0.4  
Other Investment Property
    562,088       2.2       26,118       1.7  
 
                       
Total Investment Properties
    5,720,251       23.4       390,032       25.3  
 
                       
1-4 Family Construction
    576,542       2.4       151,767       9.8  
1-4 Family Perm / Mini-Perm
    1,266,446       5.2       79,546       5.2  
Residential Development
    1,221,026       5.0       344,886       22.4  
 
                       
Total 1-4 Family Properties
    3,064,014       12.6       576,199       37.4  
 
                       
Land Acquisition
    1,397,870       5.7       251,267       16.3  
 
                       
Total Commercial Real Estate
    10,182,135       41.7       1,217,498       79.0  
 
                       
Commercial , Financial, and Agricultural
    5,779,238       23.7       171,864       11.1  
Owner-Occupied
    4,350,811       17.8       85,495       5.5  
 
                       
Total Commercial & Industrial
    10,130,049       41.5       257,359       16.6  
Home Equity
    1,695,679       6.9       16,943       1.1  
Consumer Mortgages
    1,587,537       6.5       44,383       2.9  
Credit Card
    284,781       1.2              
Other Retail Loans
    553,936       2.3       6,521       0.4  
 
                       
Total Retail
    4,121,933       16.9       67,847       4.4  
Unearned Income
    (16,953 )     (0.1 )            
 
                       
Total
  $ 24,417,164       100.0 %   $ 1,542,704       100.0 %
 
                       
LOANS OUTSTANDING BY TYPE COMPARISON
(Unaudited)

(Dollars in thousands)
                                         
    Total Loans     1Q10 vs. 4Q09             1Q10 vs. 1Q09  
Loan Type   March 31, 2010     December 31, 2009     % change (1)     March 31, 2009     % change  
Multi-Family
  $ 917,478       946,598       (12.5 )%   $ 691,327       32.7 %
Hotels
    1,064,300       1,060,837       1.3       1,072,469       (0.8 )
Office Buildings
    1,018,060       1,034,934       (6.6 )     1,122,953       (9.3 )
Shopping Centers
    1,126,052       1,149,245       (8.2 )     1,159,863       (2.9 )
Commercial Development
    510,340       546,055       (26.5 )     730,823       (30.2 )
Warehouses
    521,933       556,826       (25.4 )     534,252       (2.3 )
Other Investment Property
    562,088       592,937       (21.1 )     729,932       (23.0 )
 
                             
Total Investment Properties
    5,720,251       5,887,432       (11.5 )     6,041,619       (5.3 )
 
                             
1-4 Family Construction
    576,542       714,411       (78.3 )     1,466,636       (60.7 )
1-4 Family Perm / Mini-Perm
    1,266,446       1,281,411       (4.7 )     1,376,198       (8.0 )
Residential Development
    1,221,026       1,334,859       (34.6 )     1,931,607       (36.8 )
 
                             
Total 1-4 Family Properties
    3,064,014       3,330,681       (32.5 )     4,774,441       (35.8 )
 
                             
Land Acquisition
    1,397,870       1,510,981       (30.4 )     1,742,024       (19.8 )
 
                             
Total Commercial Real Estate
    10,182,135       10,729,094       (20.7 )     12,558,084       (18.9 )
 
                             
Commercial , Financial, and Agricultural
    5,779,238       6,015,445       (15.9 )     6,461,156     nm
 
Owner-Occupied
    4,350,811       4,445,648       (8.7 )     4,416,435       (1.5 )
 
                             
Total Commercial & Industrial
    10,130,049       10,461,093       (12.8 )     10,877,591       (6.9 )
Home Equity
    1,695,679       1,714,994       (4.6 )     1,718,918       (1.4 )
Consumer Mortgages
    1,587,537       1,637,978       (12.5 )     1,734,438       (8.5 )
Credit Card
    284,781       294,126       (12.9 )     285,099       (0.1 )
Other Retail Loans
    553,936       565,131       (8.0 )     588,164       (5.8 )
 
                             
Total Retail
    4,121,933       4,212,229       (8.7 )     4,326,619       (4.7 )
Unearned Income
    (16,953 )     (19,348 )     (50.2 )     (32,022 )     (47.1 )
 
                             
Total
  $ 24,417,164       25,383,068       (15.4 )%   $ 27,730,272       (11.9 )%
 
                             
 
(1)   Percentage change is annualized.

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Synovus
CREDIT QUALITY DATA
(Unaudited)
(Dollars in thousands)
                                                 
    2010     2009     1st Quarter  
    First     Fourth     Third     Second     First     ’10 vs. ’09  
    Quarter     Quarter     Quarter     Quarter     Quarter     Change  
Nonperforming Loans
  $ 1,542,704       1,555,776       1,519,049       1,472,242       1,415,269       9.0 %
Impaired Loans Held for Sale (1)
    78,077       36,816       40,932       34,938       22,751       243.2  
Other Real Estate
    222,155       238,807       187,494       210,968       287,246       (22.7 )
Nonperforming Assets
    1,842,937       1,831,399       1,747,475       1,718,148       1,725,266       6.8  
Allowance for Loan Losses
    968,697       943,725       918,468       918,723       642,422       50.8  
Net Charge-Offs — Quarter
    315,976       361,857       496,777       355,224       246,314       28.3  
Net Charge-Offs — YTD
    315,976       1,460,172       1,098,315       601,538       246,314       28.3  
Net Charge-Offs / Average Loans — Quarter (2)
    5.05 %     5.58       7.33       5.09       3.53          
Net Charge-Offs / Average Loans — YTD (2)
    5.05       5.37       5.30       4.31       3.53          
Nonperforming Loans / Loans
    6.32       6.13       5.77       5.34       5.10          
Nonperforming Assets / Loans, Other Loans Held for Sale & ORE
    7.46       7.14       6.58       6.17       6.15          
Allowance / Loans
    3.97       3.72       3.49       3.33       2.32          
Allowance / Nonperforming Loans
    62.79       60.66       60.46       62.40       45.39          
Past Due Loans over 90 days and Still Accruing
  $ 35,491       19,938       43,816       31,018       31,316       13.3 %
As a Percentage of Loans Outstanding
    0.15 %     0.08       0.17       0.11       0.11          
Total Past Dues Loans and Still Accruing
  $ 294,753       262,446       356,456       331,731       587,014       (49.8 )
As a Percentage of Loans Outstanding
    1.21 %     1.03       1.35       1.20       2.12          
Restructured loans (accruing)
  $ 261,160       213,552       192,559       18,025       25,919     nm
 
 
(1)   Represent impaired loans that are intended to be sold. Held for sale loans are carried at the lower of cost or fair value.
 
(2)   Ratio is annualized.
SELECTED CAPITAL INFORMATION (1)
(Unaudited)

(Dollars in thousands)
                         
    March 31, 2010     December 31, 2009     March 31, 2009  
Tier 1 Capital
  $ 2,494,790       2,721,287       3,454,987  
Total Risk-Based Capital
    3,357,445       3,637,712       4,440,572  
Tier 1 Capital Ratio
    9.69 %     10.16       11.06  
Total Risk-Based Capital Ratio
    13.04       13.58       14.22  
Leverage Ratio
    7.68       8.12       9.88  
Common Equity as a Percentage of Total Assets (2)
    5.20       5.86       7.86  
Tangible Common Equity as a Percentage of Tangible Assets (3)
    5.08       5.74       7.70  
Tangible Common Equity as a Percentage of Risk Weighted Assets (3)
    6.39       7.03       8.51  
Book Value Per Common Share (4)
    3.44       3.93       8.22  
Tangible Book Value Per Common Share (3)
    3.36       3.84       8.04  
 
(1)   Current quarter regulatory capital information is preliminary.
 
(2)   Common equity consists of Total Shareholders’ Equity less Cumulative Perpetual Perferred Stock.
 
(3)   Excludes the carrying value of goodwill and other intangible assets from common equity and total assets.
 
(4)   Book Value Per Common Share consists of Total Shareholders’ Equity less Cumulative Perpetual Preferred Stock divided by total common shares outstanding.

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