-----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, VzkswyoBW6B1YA023YR/hadV0dfsa+IdVZheTwwQnKvuZUXDZ72v01zr7iplfP37 vq2LNTsfqBh55GuNM25GWQ== 0000950144-08-005685.txt : 20080724 0000950144-08-005685.hdr.sgml : 20080724 20080724161611 ACCESSION NUMBER: 0000950144-08-005685 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20080724 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080724 DATE AS OF CHANGE: 20080724 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: 08968428 BUSINESS ADDRESS: STREET 1: 1111 BAY AVENUE STREET 2: STE 500 PO BOX 120 CITY: COLUMBUS STATE: GA ZIP: 31901 BUSINESS PHONE: 7066494818 MAIL ADDRESS: STREET 1: 1111 BAY AVENUE STREET 2: STE 500 PO BOX 120 CITY: COLUMBUS STATE: GA ZIP: 31901 FORMER COMPANY: FORMER CONFORMED NAME: CB&T BANCSHARES INC DATE OF NAME CHANGE: 19890912 8-K 1 g14348e8vk.htm SYNOVUS FINANCIAL CORP. SYNOVUS FINANCIAL CORP.
 
 
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 24, 2008
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 Incorporation)   (Commission File Number)   (IRS Employer Identification No.)
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)
(Former name or former address, if changed since last report)
     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
     o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
     o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
     o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
     o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 

 

Item 2.02     Results of Operations and Financial Condition
On July 24, 2008, Synovus Financial Corp. (the “Company”) issued a press release announcing the Company’s financial results for the three and six month periods ended June 30, 2008.
Pursuant to General Instruction F to Current Report on Form 8-K, the press release is attached to this Current Report as Exhibit 99.1 and only those portions of the press release related to the historical results of operations of the Company for the three and six month periods ended June 30, 2008 are incorporated into this Item 2.02 by reference. The information contained in this Item 2.02, including the information set forth in the press release filed as Exhibit 99.1 to, and incorporated in, this Current Report is being “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in Exhibit 99.1 furnished pursuant to this Item 2.02 shall not be incorporated by reference into any registration statement or other documents pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or into any filing or other document pursuant to the Exchange Act except as otherwise expressly stated in any such filing.
Item 7.01     Regulation FD Disclosure
On July 24, 2008, the Company made available the supplemental information (the “Supplemental Information”) prepared for use with the press release. The investor call and webcast will be held at 4:30 p.m., EDT, on July 24, 2008.
Pursuant to General Instruction F to Current Report on Form 8-K, the Supplemental Information is attached to this Current Report as Exhibit 99.2 and incorporated into this Item 7.01 by reference. The information contained in this Item 7.01, including the information set forth in the Supplemental Information is filed as Exhibit 99.2 to, and incorporated in, this Current Report, is being “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that Section. The information in Exhibit 99.2 furnished pursuant to this Item 7.01 shall not be incorporated by reference into any registration statement or other documents pursuant to the Securities Act or into any filing or other document pursuant to the Exchange Act except as otherwise expressly stated in any such filing.

2

 

Item 9.01     Financial Statements and Exhibits
(d) Exhibits
     
Exhibit No.   Description
 
    
99.1
  Synovus press release dated July 24, 2008
 
    
99.2
  Supplemental Information prepared for use with the press release

3

 

Signature
     Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, Synovus has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  SYNOVUS FINANCIAL CORP.
(“Synovus”)
 		  
Dated: July 24, 2008  By:   /s/ Samuel F. Hatcher    
    Executive Vice President,    
    General Counsel and Secretary   
 

4

 EX-99.1 2 g14348exv99w1.htm EX-99.1 PRESS RELEASE DATED JULY 24, 2008 EX-99.1 PRESS RELEASE DATED JULY 24, 2008
Exhibit 99.1
(Synovus Logo)
          For Immediate Release
          Contact:            Patrick A. Reynolds
Director of Investor Relations
(706) 649-4973
Synovus Reports Earnings per Share of $0.04 for Second Quarter 2008
Includes Goodwill Impairment Charge of $0.08 per Diluted Share
Columbus, Ga., July 24, 2008 — Synovus reports net income for the second quarter of 2008 totaling $12.1 million, or $0.04 per diluted share, compared to income from continuing operations of $105.8 million, or $0.32 per diluted share, for the second quarter of 2007. The second quarter of 2008 results include the impact of a non-cash goodwill impairment charge of $27 million or $0.08 per diluted share as discussed below. This charge has no impact on tangible equity or regulatory capital ratios since goodwill is already excluded from these measures.
          Shareholders’ equity as of June 30, 2008, was $3.43 billion, which represented a very strong 10.02% of quarter-end assets. Total assets ended the quarter at $34.2 billion, an increase of 7.1% when compared to total assets for continuing operations a year ago. The Tier 1 Capital Ratio was 8.91%, the Total Risk-Based Capital Ratio was 12.28%, and the Tangible Common Equity to Tangible Assets Ratio was 8.64%.
          The ratio of nonperforming assets to loans, impaired loans held for sale, and other real estate was 3.00%, compared to 2.49% last quarter and 0.87% in the second quarter of last year. Nonperforming loans were $627 million for the second quarter of 2008, an increase of $111 million from the first quarter of 2008. The rate of increase in nonperforming loans slowed in the second quarter (22%) as compared to the previous quarter (51%). Of the $111 million increase in nonperforming loans, 46% were in the Atlanta area. The Atlanta market represents 58% of Synovus’ total nonperforming loans in the residential construction and development portfolios. The net charge-off ratio for the quarter was 1.04% compared to 0.95% last quarter and 0.25% in the second quarter of last year. The allowance for loan losses was 1.52% of loans at June 30, 2008, compared to 1.46% at the end of last quarter and 1.30% at June 30, 2007. The provision expense for the quarter was $93.6 million, compared to $91.0 million last quarter, and $20.3 million in the second quarter last year. The provision for loan losses covered net charge-offs by 133% for the quarter. Total loans past due and still accruing as a percentage of loans outstanding improved from 1.39% last quarter to 1.33% in the second quarter. Past due loans over 90 days and still accruing as a percentage of loans outstanding improved from 0.16% last quarter to 0.14% in the second quarter.
          Net interest income for the second quarter was $273.4 million compared to $288.5 million in the second quarter of last year. The net interest margin for the quarter was 3.57%, compared to 3.71% last quarter and 4.00% in the second quarter of last year. Of the 14 basis point decrease in the margin from the previous quarter, 3 basis points were related to increased credit costs. Total loans grew 4.9% (annualized) on a sequential quarter basis. Commercial income producing properties grew 15.4%, commercial and industrial loans grew 6.7% and retail loans grew 16.2%, while residential construction loans declined 33.9%, and residential development loans declined
Post Office Box 120 / Columbus, GA 31902
www.synovus.com

 

 

Synovus Reports Earnings per Share of $0.04 for Second Quarter/p. 2
15.1% on an annualized sequential quarter basis. Total core deposits (excludes brokered deposits) grew 4.1% (annualized) on a sequential quarter basis.
          Non-interest income was $107.7 million for the quarter. After excluding a $9.9 million net after-tax gain on the sale of MasterCard stock, non-interest income was down 5% compared to the second quarter last year with increases in brokerage and investment banking revenue of 17.9%, bankcard fees of 22.7%, and fiduciary and asset management fees — which include trust, financial planning, and asset management fees of 1.9%, while mortgage banking income and service charges on deposit accounts were down 26.1% and 7.1%, respectively.
          Non-interest expenses of $266.0 million were up $68.3 million compared to the second quarter last year. The increase includes the $27 million estimated goodwill impairment charge, $23 million in impaired loans held for sale and other real estate costs, a $4 million provision for unfunded lending commitments, and the $2.4 million civil money penalty that was paid to the FDIC in connection with the settlement agreement related to the credit card programs offered pursuant to our affinity agreement with CompuCredit Corporation.
          During the second quarter of 2008, Synovus conducted its annual goodwill impairment testing. The evaluation resulted in an estimated goodwill impairment charge of $27 million (pre-tax and after-tax) on one of our reporting units. The charge has been recorded as a component of non-interest expense for the second quarter of 2008. The impairment charge is an estimate that will be finalized upon completion of the goodwill impairment testing. The driver of impairment is the decrease in market-based trading and transaction multiples.
          Synovus will host an earnings highlights conference call at 4:30 pm EDT, on July 24, 2008. Shareholders and other interested persons may listen to this conference call via simultaneous Internet broadcast at www.synovus.com by clicking on the “Live Webcast” icon. You may download RealPlayer or Windows Media Player (free download available) prior to accessing the actual call or the replay. The replay will be archived for 12 months and will be available 30-45 minutes after the call.
Synovus (NYSE: “SNV”) is a financial services holding company with $34 billion in assets based in Columbus, Georgia. Synovus provides commercial and retail banking, as well as investment services, to customers through 35 banks, 440 ATMs, and other Synovus offices in Georgia, Alabama, South Carolina, Florida and Tennessee. The company focuses on its unique decentralized customer delivery model, position in high-growth Southeast markets and commitment to being a great place to work to ensure the delivery of unparalleled customer experiences. See Synovus on the Web at www.synovus.com.
This press release and certain of our other filings with the Securities and Exchange Commission 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, our estimated goodwill impairment charge and the assumptions underlying this estimate. 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 and our filings with the Securities and Exchange Commission. Many of these factors are beyond Synovus’ ability to control or predict. Factors that could cause actual results to differ materially from those contemplated in this press release and our filings with the Securities and Exchange Commission include: (1) deteriorating credit quality, particularly in
Synovus Reports Earnings per Share of $0.04 for Second Quarter/p. 2
Post Office Box 120 / Columbus, GA 31902
www.synovus.com

 

 

residential construction and development loans, may result in increased delinquencies and credit losses, which will adversely impact us; (2) declining values of residential real estate which may increase our credit losses and negatively affect our financial results; (3) continuing deteriorations in general economic conditions and conditions in the financial markets; (4) inadequacy of our allowance for loan losses, or the risk that the allowance may prove to be inadequate or may be negatively affected by credit risk exposures; (5) changes in the interest rate environment which expand or reduce interest margins, impact funding sources or adversely affect critical estimates as applied, and fair value of assets; (6) slower than anticipated rates of growth in non-interest income; (7) impact of proposed changes in the regulation of banks and financial institutions; (8) restrictions or limitations on access to funds from subsidiaries, thereby restricting our ability to make payments on our obligations or dividend payments; (9) risks associated with litigation; (10) inability to access the capital markets on terms that are satisfactory; (11) the volatility of our stock price; and (12) and the other factors set forth 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. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise.
###
Post Office Box 120 / Columbus, GA 31902
www.synovus.com

 

EX-99.2 3 g14348exv99w2.htm EX-99.2 SUPPLEMENTAL INFORMATION PREPARD FOR USE WITH PRESS RELEASE EX-99.2 SUPPLEMENTAL INFORMATION FOR PRESS RELEASE
Exhibit 99.2
     
Synovus   3 of 8
INCOME STATEMENT DATA
(Unaudited)
(In thousands)
                         
    Six Months Ended  
    June 30,  
    2008     2007     Change  
     
Interest income (taxable equivalent)
   $ 964,331       1,115,020       (13.5 )%
Interest expense
     409,950       540,967       (24.2 )
 
                  
 
                        
Net interest income (taxable equivalent)
     554,381       574,053       (3.4 )
Tax equivalent adjustment
     2,311       2,629       (12.1 )
 
                  
 
                        
Net interest income
     552,070       571,424       (3.4 )
Provision for loan losses
     184,665       40,797       352.6  
 
                  
 
                        
Net interest income after provision
     367,405       530,627       (30.8 )
 
                  
 
                        
Non-interest income:
                        
Service charges on deposit accounts
     54,461       54,420       0.1  
Fiduciary and asset management fees
     25,519       25,129       1.6  
Brokerage and investment banking revenue
     17,693       15,259       16.0  
Mortgage banking income
     13,847       14,920       (7.2 )
Bankcard fees
     26,417       23,447       12.7  
Net gains on sales of available for sale investment securities
     —       705     nm  
Other fee income
     21,266       19,838       7.2  
Proceeds from Visa IPO
     38,542       —     nm  
Other non-interest income
     49,930       30,116       65.8  
 
                  
 
                        
Total non-interest income
     247,675       183,834       34.7  
 
                  
 
                        
Non-interest expense:
                        
Salaries and other personnel expense
     232,614       229,749       1.2  
Net occupancy and equipment expense
     61,340       54,860       11.8  
FDIC insurance and other regulatory fees
     12,250       4,698       160.7  
Impaired loans held for sale and other real estate costs
     31,502       1,150     nm  
Visa litigation expense
     (17,430 )     —     nm  
Goodwill impairment
     27,000       —     nm  
Professional fees
     16,697       10,245       63.0  
Other operating expense
     103,365       91,755       12.7  
 
                  
 
                        
Total non-interest expense
     467,338       392,457       19.1  
 
                  
 
                        
Minority interest in consolidated subsidiaries
     1,697       —     nm  
Income from continuing operations before income taxes
     146,045       322,004       (54.6 )
Income tax expense
     52,952       115,789       (54.3 )
 
                  
 
                        
Income from continuing operations
     93,093       206,215       (54.9 )
 
                        
Income from discontinued operations, net of income taxes and minority interest (1)
     —       103,287     nm  
 
                  
 
                        
Net income
   $ 93,093       309,502       (69.9 )
 
                  
 
                        
Basic earnings per share
                        
Income from continuing operations
   $ 0.28       0.63       (55.3 )%
Net income
     0.28       0.95       (70.2 )
 
                        
Diluted earnings per share
                        
Income from continuing operations
     0.28       0.63       (55.1 )
Net income
     0.28       0.94       (70.1 )
 
                        
Cash dividends declared per share
     0.17       0.21       (17.1 )
 
                        
Return on average assets from continuing operations*
     0.56       2.67     (211 )bp
Return on average assets *
     0.56       3.84       (328 )
Return on average equity from continuing operations*
     5.41       21.64       (1,623 )
Return on average equity *
     5.41       32.47       (2,706 )
 
                        
Average shares outstanding — basic
     329,071       326,051       0.9 %
Average shares outstanding — diluted
     331,568       329,920       0.5  
 
bp   —     change is measured as difference in basis points.
 
nm   —     not meaningful
 
*   —     ratios are annualized
 
(1)   On December 31, 2007, Synovus Financial Corp. completed the spin-off of its shares of Total System Services, Inc. (“TSYS”) common stock to Synovus shareholders. In accordance with the provisions of Statement of Financial Accounting Standards (SFAS) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” and SFAS No. 146, “Accounting for Costs Associated with Exit or Disposal Activities,” the historical consolidated results of operations of TSYS, as well as all costs recorded by Synovus Financial Corp. associated with the spin-off of TSYS, are now presented as a discontinued operation. Additionally, discontinued operations for the six months ended June 30, 2007 includes a $4.2 million after-tax gain related to the transfer of Synovus’ proprietary mutual funds to a non-affiliated third party.

 

 

     
Synovus   4 of 8
INCOME STATEMENT DATA
(Unaudited)
(In thousands, except per share data)
                                                 
    2008     2007     2nd Quarter  
    Second     First     Fourth     Third     Second     ’08 vs. ’07  
    Quarter     Quarter     Quarter     Quarter     Quarter     Change  
Interest income (taxable equivalent)
   $ 459,273       505,057       554,989       573,545       565,777       (18.8 )%
Interest expense
     184,718       225,232       267,102       281,478       276,017       (33.1 )
 
                                    
 
                                                
Net interest income (taxable equivalent)
     274,555       279,825       287,887       292,067       289,760       (5.2 )
Tax equivalent adjustment
     1,134       1,176       1,202       1,228       1,285       (11.8 )
 
                                    
 
                                                
Net interest income
     273,421       278,649       286,685       290,839       288,475       (5.2 )
Provision for loan losses
     93,616       91,049       70,642       58,770       20,281       361.6  
 
                                    
 
                                                
Net interest income after provision
     179,805       187,600       216,043       232,069       268,194       (33.0 )
 
                                    
 
                                                
Non-interest income:
                                                
Service charges on deposit accounts
     26,070       28,391       28,985       28,736       28,050       (7.1 )
Fiduciary and asset management fees
     12,898       12,621       13,110       12,524       12,657       1.9  
Brokerage and investment banking revenue
     9,206       8,487       8,598       8,123       7,809       17.9  
Mortgage banking income
     5,686       8,161       6,130       5,955       7,695       (26.1 )
Bankcard fees
     14,198       12,218       12,400       11,923       11,567       22.7  
Net gains on sales of available for sale investment securities
     —       —       90       186       258     nm  
Other fee income
     10,081       11,185       9,559       9,910       10,411       (3.2 )
Other non-interest income
     29,559       20,370       20,126       28,837       17,883       65.3  
Proceeds from Visa IPO
     —       38,542       —       —       —     nm  
 
                                    
 
                                                
Total non-interest income
     107,698       139,975       98,998       106,194       96,330       11.8  
 
                                    
 
                                                
Non-interest expense:
                                                
Salaries and other personnel expense
     110,483       122,130       109,468       115,941       115,822       (4.6 )
Net occupancy and equipment expense
     31,130       30,211       29,976       28,055       27,572       12.9  
FDIC insurance and other regulatory fees
     6,172       6,079       3,108       2,541       2,315       166.6  
Impaired loans held for sale and other real estate costs
     23,621       7,881       12,924       1,662       577     nm  
Visa litigation expense
     —       (17,430 )     24,800       12,000       —     nm  
Goodwill impairment
     27,000       —       —       —       —     nm  
Professional fees
     11,756       4,940       6,307       4,703       4,743       147.9  
Other operating expense
     55,802       47,563       48,626       47,523       46,631       19.7  
 
                                    
 
                                                
Total non-interest expense
     265,964       201,374       235,209       212,425       197,660       34.6  
 
                                    
 
                                                
Minority interest in consolidated subsidiaries
     138       1,559       —       —       —     nm  
Income from continuing operations before income taxes
     21,401       124,642       79,832       125,838       166,864       (87.2 )
Income tax expense
     9,302       43,648       26,690       42,261       61,055       (84.8 )
 
                                    
 
                                                
Income from continuing operations
     12,099       80,994       53,142       83,577       105,809       (88.6 )
Income from discontinued operations, net of income taxes and minority interest (1)
     —       —       28,717       51,366       56,941     nm  
 
                                    
 
                                                
Net income
   $ 12,099       80,994       81,859       134,943       162,750       (92.6 )
 
                                    
 
                                                
Basic earnings per share
                                               
Income from continuing operations
   $ 0.04       0.25       0.16       0.26       0.32       (88.7 )%
Net income
     0.04       0.25       0.25       0.41       0.50       (92.6 )
 
                                                
Diluted earnings per share
                                               
Income from continuing operations
     0.04       0.24       0.16       0.25       0.32       (88.6 )
Net income
     0.04       0.24       0.25       0.41       0.49       (92.6 )
 
                                                
Cash dividends declared per share
     0.17       0.17       0.21       0.21       0.21       (17.1 )
 
                                                
Return on average assets from continuing operations*
     0.14 %     0.99 %     0.65       1.05       1.35     (121)bp
Return on average assets *
     0.14       0.99       1.01       1.66       1.97       (183 )
Return on average equity from continuing operations*
     1.40       9.43       5.17       8.25       10.85       (945 )
Return on average equity *
     1.40       9.43       7.97       13.32       16.69       (1,529 )
 
                                                
Average shares outstanding — basic
     329,173       328,970       328,052       327,215       326,410       0.8 %
Average shares outstanding — diluted
     331,418       331,719       329,453       330,160       330,263       0.3  
 
bp   —     change is measured as difference in basis points.
 
nm   —     not meaningful
 
*   —     ratios are annualized
 
(1)   On December 31, 2007, Synovus Financial Corp. completed the spin-off of its shares of Total System Services, Inc. (“TSYS”) common stock to Synovus shareholders. In accordance with the provisions of Statement of Financial Accounting Standards (SFAS) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” and SFAS No. 146, “Accounting for Costs Associated with Exit or Disposal Activities,” the historical consolidated results of operations of TSYS, as well as all costs recorded by Synovus Financial Corp. associated with the spin-off of TSYS, are now presented as a discontinued operation. Additionally, discontinued operations for the three months ended June 30, 2007 includes a $4.2 million after-tax gain related to the transfer of Synovus’ proprietary mutual funds to a non-affiliated third party.

 

 

     
Synovus   5 of 8
BALANCE SHEET DATA
(Unaudited)
(In thousands, except share data)
                         
    June 30, 2008     December 31, 2007     June 30, 2007  
ASSETS
                        
Cash and due from banks
   $ 674,834       682,583       695,008  
Interest earning deposits with banks
     17,337       10,950       5,157  
Federal funds sold and securities purchased under resale agreements
     152,177       76,086       241,685  
Trading account assets
     20,204       17,803       70,625  
Mortgage loans held for sale
     185,245       153,437       190,587  
Impaired loans held for sale
     6,365       —       —  
Investment securities available for sale
     3,814,384       3,666,974       3,558,813  
 
Loans, net of unearned income
     27,445,891       26,498,585       25,541,742  
Allowance for loan losses
     (417,813 )     (367,613 )     (331,130 )
 
                  
Loans, net
     27,028,078       26,130,972       25,210,612  
 
                  
 
                        
Premises and equipment, net
     581,352       547,437       512,142  
Goodwill
     492,138       519,138       519,138  
Other intangible assets, net
     24,860       28,007       31,283  
Other assets
     1,230,327       1,185,065       931,814  
Assets of discontinued operations
     —       —       1,386,514  
 
                  
 
                        
Total assets
   $ 34,227,301       33,018,452       33,353,378  
 
                  
 
                        
LIABILITIES AND SHAREHOLDERS’ EQUITY
                        
Liabilities:
                        
Deposits:
                        
Non-interest bearing retail and commercial deposits
   $ 3,553,342       3,472,423       3,638,434  
Interest bearing retail and commercial deposits
     17,887,708       17,734,851       17,949,351  
 
                  
 
                        
Total retail and commercial deposits
     21,441,050       21,207,274       21,587,785  
Brokered deposits
     4,587,302       3,752,542       3,713,936  
 
                  
 
                        
Total deposits
     26,028,352       24,959,816       25,301,721  
Federal funds purchased and other short-term liabilities
     2,287,910       2,319,412       1,788,955  
Long-term debt
     2,121,625       1,890,235       1,657,483  
Other liabilities
     336,701       407,399       394,228  
Liabilities of and minority interest in discontinued operations (1)
     —       —       285,667  
 
                  
 
                        
Total liabilities
     30,774,588       29,576,862       29,428,054  
 
                  
 
                        
Minority interest in consolidated subsidiaries
     24,092       —       —  
 
                        
Shareholders’ equity:
                        
Common stock, par value $1.00 a share (2)
     335,826       335,529       333,078  
Additional paid-in capital
     1,110,644       1,101,209       1,091,517  
Treasury stock (3)
     (114,075 )     (113,944 )     (113,944 )
Accumulated other comprehensive income (loss)
     30,190       31,439       (20,929 )
Retained earnings
     2,066,036       2,087,357       2,635,602  
 
                  
Total shareholders’ equity
     3,428,621       3,441,590       3,925,324  
 
                  
 
                        
Total liabilities and shareholders’ equity
   $ 34,227,301       33,018,452       33,353,378  
 
                  
 
(1)   On December 31, 2007, Synovus Financial Corp. completed the spin-off of its shares of Total System Services, Inc. (“TSYS”) common stock to Synovus shareholders. In accordance with Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” all prior period assets and liabilities of TSYS are presented as a discontinued operation.
 
(2)   Common shares outstanding: 330,153,646; 329,867,944 and 327,416,936 at June 30, 2008, December 31, 2007, and June 30, 2007, respectively.
 
(3)   Treasury shares: 5,672,221 at June 30, 2008; 5,661,538 at December 31, 2007 and June 30, 2007.

 

 

     
Synovus   6 of 8
AVERAGE BALANCES AND YIELDS/RATES *
(Unaudited)
(Dollars in thousands)
                                         
    2008   2007
    Second   First   Fourth   Third   Second
    Quarter   Quarter   Quarter   Quarter   Quarter
     
Interest Earning Assets
                                        
Taxable Investment Securities
   $ 3,556,381       3,485,370       3,496,843       3,495,017       3,420,831  
Yield
     5.00 %     5.01       4.90       4.82       4.83  
 
                                        
Tax-Exempt Investment Securities
   $ 137,606       154,408       164,587       170,211       178,183  
Yield (taxable equivalent)
     7.34 %     7.00       6.82       6.72       6.75  
 
                                        
Trading Account Assets
   $ 26,531       36,652       29,698       56,217       59,311  
Yield
     5.88 %     6.96       7.05       7.15       6.47  
 
                                        
Commercial Loans
   $ 23,183,128       22,763,954       22,157,460       21,820,687       21,739,107  
Yield
     5.96 %     6.79       7.69       8.13       8.20  
 
                                        
Consumer Loans
   $ 966,111       931,644       928,942       915,847       896,267  
Yield
     7.53 %     7.86       8.05       8.17       8.14  
 
                                        
Mortgage Loans
   $ 1,252,275       1,241,018       1,237,962       1,152,621       1,110,754  
Yield
     6.54 %     6.84       7.04       7.10       7.03  
 
                                        
Credit Card Loans
   $ 291,143       296,428       285,410       277,445       275,105  
Yield
     8.60 %     9.65       10.26       10.96       10.64  
 
                                        
Home Equity Loans
   $ 1,605,601       1,557,852       1,517,510       1,444,411       1,407,005  
Yield
     5.31 %     6.48       7.34       7.80       7.82  
 
                                        
Allowance for Loan Losses
   $ (397,392 )     (381,695 )     (357,283 )     (335,406 )     (329,028 )
     
Loans, Net
   $ 26,900,866       26,409,201       25,770,001       25,275,605       25,099,210  
Yield
     6.12 %     6.94       7.79       8.21       8.26  
 
                                        
Mortgage Loans Held for Sale
   $ 157,049       121,806       108,044       176,448       163,364  
Yield
     5.86 %     5.57       6.12       6.91       6.18  
 
                                        
Federal Funds Sold and Other Short-Term Investments
   $ 201,081       128,381       110,745       85,094       131,029  
Yield
     1.83 %     3.41       4.63       5.76       5.37  
     
Total Interest Earning Assets
   $ 30,979,514       30,335,818       29,679,918       29,258,592       29,051,928  
Yield
     5.96 %     6.69       7.42       7.78       7.81  
     
 
                                        
Interest Bearing Liabilities
                                        
 
                                        
Interest Bearing Demand Deposits
   $ 3,154,884       3,200,650       3,200,408       3,047,279       3,141,899  
Rate
     1.10 %     1.56       1.99       2.24       2.28  
 
                                        
Money Market Accounts
   $ 6,826,724       7,017,644       7,502,063       7,421,900       7,217,265  
Rate
     2.15 %     2.98       3.92       4.40       4.46  
 
                                        
Savings Deposits
   $ 461,970       448,581       454,204       479,479       497,422  
Rate
     0.25 %     0.28       0.35       0.48       0.57  
 
                                        
Time Deposits Under $100,000
   $ 2,814,714       2,777,764       2,790,869       2,917,089       3,020,881  
Rate
     3.97 %     4.44       4.69       4.81       4.85  
 
                                        
Time Deposits Over $100,000 (less brokered time deposits)
   $ 4,316,454       4,171,716       4,006,350       4,029,091       4,118,221  
Rate
     4.09 %     4.69       4.98       5.12       5.19  
     
Total Interest Bearing Core Deposits
   $ 17,574,746       17,616,355       17,953,894       17,894,838       17,995,688  
Rate
     2.68 %     3.29       3.84       4.16       4.20  
 
                                        
Brokered Money Market Accounts
   $ 1,082,805       854,385       467,346       476,377       426,988  
Rate
     2.54 %     3.50       4.89       5.34       5.45  
 
                                        
Brokered Time Deposits
   $ 3,495,947       3,300,677       2,941,592       3,188,310       3,175,161  
Rate
     3.64 %     4.35       4.98       5.19       5.05  
     
Total Interest Bearing Deposits
   $ 22,153,498       21,771,417       21,362,832       21,559,525       21,597,837  
Rate
     2.82 %     3.46       4.02       4.33       4.35  
 
                                        
Federal Funds Purchased and Other Short-Term Liabilities
   $ 2,302,986       2,253,640       2,472,339       1,930,598       1,720,535  
Rate
     2.03 %     3.18       4.37       4.84       4.96  
 
                                        
Long-Term Debt
   $ 2,048,213       1,930,412       1,819,198       1,660,788       1,552,310  
Rate
     3.44 %     4.21       5.08       5.32       5.18  
     
Total Interest Bearing Liabilities
   $ 26,504,697       25,955,469       25,654,369       25,150,911       24,870,682  
Rate
     2.80 %     3.48       4.12       4.43       4.44  
     
Non-Interest Bearing Demand Deposits
   $ 3,448,794       3,338,106       3,422,684       3,405,622       3,428,246  
     
Net Interest Margin
     3.57 %     3.71       3.86       3.97       4.00  
     
 
*   Yields and rates are annualized.
 
(1)   On December 31, 2007, Synovus Financial Corp. completed the spin-off of its shares of Total System Services, Inc. (“TSYS”) common stock to Synovus shareholders. In accordance with the provisions of Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” the historical consolidated results of operations, assets, and liabilities of TSYS are now presented as a discontinued operation. Accordingly, the above earning assets, liabilities, yields, and cost of funds exclude the amounts related to TSYS due to the de-consolidation of TSYS.

 

 

7 of 8
Synovus
LOANS OUTSTANDING AND NONPERFORMING LOANS COMPOSITION
(Unaudited)
(Dollars in thousands)
                                 
    June 30, 2008  
            Loans as a %     Total     Nonperforming Loans  
            of Total Loans     Nonperforming     as a % of Total  
Loan Type   Total Loans     Outstanding     Loans     Nonperforming Loans  
Multi-Family
   $ 527,881       1.9 %   $ 1,552       0.2 %
Hotels
     756,492       2.8       766       0.1  
Office Buildings
     966,171       3.5       3,119       0.5  
Shopping Centers
     965,130       3.6       1,031       0.2  
Commercial Development
     909,965       3.3       12,573       2.0  
Other Investment Property
     873,902       3.2       —       —  
 
                        
Total Investment Properties
     4,999,541       18.3       19,041       3.0  
 
                        
1-4 Family Construction
     1,971,819       7.2       220,194       35.1  
1-4 Family Perm / Mini-Perm
     1,350,463       4.9       32,661       5.2  
Residential Development
     2,227,709       8.1       154,776       24.7  
 
                        
Total 1-4 Family Properties
     5,549,991       20.2       407,631       65.0  
 
                        
Land Acquisition
     1,569,618       5.7       75,623       12.1  
 
                        
Total Commercial Real Estate
     12,119,150       44.2       502,295       80.1  
 
                        
Commercial , Financial, and Agricultural
     6,788,276       24.7       70,608       11.3  
Owner-Occupied
     4,367,743       15.9       32,345       5.2  
 
                        
Total Commercial & Industrial
     11,156,019       40.6       102,953       16.5  
 
                                
Home Equity
     1,632,551       5.9       6,771       1.1  
Consumer Mortgages
     1,723,689       6.3       12,486       2.0  
Credit Card
     299,850       1.1       —       —  
Other Retail Loans
     555,507       2.0       2,066       0.3  
 
                        
Total Retail
     4,211,597       15.3       21,323       3.4  
Unearned Income
     (40,875 )     (0.1 )     —       —  
 
                        
Total
   $ 27,445,891       100.0 %   $ 626,571       100.0 %
 
                        
LOANS OUTSTANDING BY TYPE COMPARISON
(Unaudited)
(Dollars in thousands)
                                         
    Total Loans     2Q08 vs. 4Q07             2Q08 vs. 2Q07  
Loan Type   June 30, 2008     December 31, 2007     % change (1)     June 30, 2007     % change  
Multi-Family
   $ 527,881       452,163       33.7 %   $ 489,453       7.9 %
Hotels
     756,492       614,979       46.3       581,376       30.1  
Office Buildings
     966,171       953,093       2.8       856,999       12.7  
Shopping Centers
     965,130       834,025       31.6       712,210       35.5  
Commercial Development
     909,965       961,271       (10.7 )     919,965       (1.1 )
Other Investment Property
     873,902       714,296       44.9       687,683       27.1  
 
                                        
 
                              
Total Investment Properties
     4,999,541       4,529,827       20.9       4,247,686       17.7  
 
                              
 
                                        
1-4 Family Construction
     1,971,819       2,238,925       (24.0 )     2,382,147       (17.2 )
1-4 Family Perm / Mini-Perm
     1,350,463       1,273,843       12.1       1,167,658       15.7  
Residential Development
     2,227,709       2,311,459       (7.3 )     2,297,807       (3.1 )
 
                              
Total 1-4 Family Properties
     5,549,991       5,824,227       (9.5 )     5,847,612       (5.1 )
 
                              
 
                                        
Land Acquisition
     1,569,618       1,545,933       3.1       1,430,431       9.7  
 
                              
 
                                        
Total Commercial Real Estate
     12,119,150       11,899,987       3.7       11,525,729       5.1  
 
                              
 
                                        
Commercial , Financial, and Agricultural
     6,788,276       6,420,689       11.5       6,240,987       8.8  
Owner-Occupied
     4,367,743       4,226,707       6.7       4,095,800       6.6  
 
                              
 
                                        
Total Commercial & Industrial
     11,156,019       10,647,396       9.6       10,336,787       7.9  
 
                                        
Home Equity
     1,632,551       1,543,701       11.6       1,417,681       15.2  
Consumer Mortgages
     1,723,689       1,667,924       6.7       1,544,932       11.6  
Credit Card
     299,850       291,149       6.0       280,805       6.8  
Other Retail Loans
     555,507       494,591       24.8       483,820       14.8  
 
                              
Total Retail
     4,211,597       3,997,365       10.8       3,727,238       13.0  
 
                                        
Unearned Income
     (40,875 )     (46,163 )     (23.0 )     (48,012 )     (14.9 )
 
                              
 
                                        
Total
   $ 27,445,891       26,498,585       7.2 %   $ 25,541,742       7.5 %
 
                              
 
(1)   Percentage change is annualized.

 

 

     
Synovus   8 of 8
CREDIT QUALITY DATA
(Unaudited)
(Dollars in thousands)
                                                 
    2008   2007   2nd Quarter
    Second   First   Fourth   Third   Second   ’08 vs. ’07
    Quarter   Quarter   Quarter   Quarter   Quarter   Change
     
Nonperforming Loans (1)
   $ 626,571       515,302       342,082       224,055       180,776       246.6 %
Impaired Loans Held for Sale (2)
     6,365       42,270       —       —       —     NM
Other Real Estate
     197,328       121,753       101,487       76,514       41,259       378.3  
Nonperforming Assets
     830,264       679,325       443,569       300,569       222,035       273.9  
 
                                                
Allowance for Loan Losses
     417,813       394,848       367,613       356,887       331,130       26.2  
 
                                                
Net Charge-Offs — Quarter
     70,652       63,813       59,916       33,013       15,978       342.2  
Net Charge-Offs — YTD
     134,465       63,813       117,055       57,139       24,126       457.3  
Net Charge-Offs / Average Loans — Quarter (3)
     1.04 %     0.95       0.91       0.51       0.25          
Net Charge-Offs / Average Loans — YTD (3)
     0.99       0.95       0.46       0.30       0.19          
 
                                                
Nonperforming Loans / Loans
     2.29       1.90       1.29       0.87       0.71          
Nonperforming Assets / Loans, Impaired Loans Held for Sale & ORE
     3.00       2.49       1.67       1.16       0.87          
Allowance / Loans
     1.52       1.46       1.39       1.38       1.30          
 
                                                
Allowance / Nonperforming Loans
     66.68       76.62       107.46       159.29       183.17          
Allowance / Nonperforming Loans (excluding impaired loans for which there is no related allowance for loan losses (4))
     206.82       220.89       337.49       334.42       417.79          
 
                                                
Past Due Loans over 90 days and still accruing
     39,614       43,009       33,663       22,667       23,067       71.7 %
As a Percentage of Loans Outstanding
     0.14       0.16       0.13       0.09       0.09          
 
                                                
Total Past Dues Loans and still accruing
     365,046       377,999       270,496       230,035       164,180       122.3  
As a Percentage of Loans Outstanding
     1.33       1.39       1.02       0.89       0.64          
 
(1)   Includes $424.5 million, $336.5 million, $233.2 million, $117.3 million, and $101.5 million at June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, and June 30, 2007, respectively, of loans considered to be impaired (consisting of collateral dependent loans) for which there is no related allowance for loan losses determined in accordance with SFAS No. 114, “Accounting by Creditors for Impairment of a Loan.” The allowance on these loans is zero because the estimated losses on collateral dependent impaired loans have been charged-off, at the time these loans were considered to be impaired .
 
(2)   Represent impaired loans that are intended to be sold. Held for sale loans are carried at the lower of cost or fair value.
 
(3)   Ratio is annualized.
 
(4)   Impaired loans for which there is no related allowance for loan losses as described in note (1).
SELECTED CAPITAL INFORMATION (1)
(Unaudited)
(Dollars in thousands)
                         
    June 30, 2008   December 31, 2007   June 30, 2007
Tier 1 Capital
   $ 2,891,861       2,870,558       3,514,214  
Total Risk-Based Capital
     3,987,836       3,988,171       4,595,344  
Tier 1 Capital Ratio
     8.91 %     9.11       11.22  
Total Risk-Based Capital Ratio
     12.28       12.66       14.68  
Leverage Ratio
     8.69       8.65       10.99  
Equity as a Percentage of Total Assets
     10.02       10.42       11.77  
Tangible equity as a percentage of tangible assets (2)
     8.64       8.91       10.29  
Book value per share
     10.38       10.43       11.99  
Tangible book value per share (2)
     8.82       8.78       10.31  
 
(1)   Current quarter regulatory capital information is preliminary.
 
(2)   Excludes the carrying value of goodwill and other intangible assets from shareholders’ equity and total assets.

 

GRAPHIC 4 g14348g1434801.gif GRAPHIC begin 644 g14348g1434801.gif M1TE&.#EAE0)"`/<``````(````"``("`````@(``@`"`@+^^OL#H2$>X6%A8F)B8^.CI23DYF9F9VF MIJNIJ:^NKK6TM+JYN<*]O<;%QFM33T]U/2-UI8MN*AMG9 MV>DS*>,X+^<^-.A#.NE+0^=:4NAF7^AL9>1R:^EY<^B)@^B0B^>6DNJJRK^>WM>?!ON7(Q^3,RNG/SNK5U.'?W^?FYNH``.P*`.T/`^P3 M".P8#.T:#^T>$^TC&.TF&^XL(NDP&N\Q)^\Y&.@W'>\V*_`Z,.U"(?!!-^]. M*/%'/?%+0>U/1^]01O!94/%@5?!B6O!J6_%J8N]Q7?!Q:N]W<>]\=/""?.^& M@/"+A/"1B_&8D^Z@G.ZFHO"KIO*OJ^^MK?"ULO"]NO'#P._'Q?',RN_2T._= MW/#HZ/'P\._[_/<8"/<8$//>$6O2"8O6';/6">_:(@O6,:/:*?_>.B/:/;/6/ M/:4C?N8D?>9=_>=>O>;@/>;E/B?FO>E>_>AA?:ED?>DG?>LH_BVHOFT MK?BWL_B^M/K&O/?'P_K/Q/C4T?C:U_G?W?;EY/OMZ??V]O7]_?]K8_]S:_YY M_R%?O^$A/F,A/^4E/^_^EC/REH/BJB_BNE/ROJ/NPK/FRE?FU MFO^UI?RXL_J^K/R^N_K#K?K'MO_&M?S'POO.OOS.Q_O0S/_6O?O5Q_S6T/S< MT/S>UOWCV/WEWOWJYO_OWOWP[OWT\?[X]_O[_/[^_O_[\*&AH7Y^?O\```#_ M`/__````__\`_P#______R'Y!```````+`````"5`D(`AP```(````"``("` M````@(``@`"`@+^^OL#H2$ M>X6%A8F)B8^.CI23DYF9F9VFIJNIJ:^NKK6TM+JYN<*]O<;%QFM33T]U/2-UI8MN*AMG9V>DS*>,X+^<^-.A#.NE+0^=:4NAF7^AL M9>1R:^EY<^B)@^B0B^>6DNJJRK^>WM>?!ON7(Q^3,RNG/ MSNK5U.'?W^?FYNH``.P*`.T/`^P3".P8#.T:#^T>$^TC&.TF&^XL(NDP&N\Q M)^\Y&.@W'>\V*_`Z,.U"(?!!-^].*/%'/?%+0>U/1^]01O!94/%@5?!B6O!J M6_%J8N]Q7?!Q:N]W<>]\=/""?.^&@/"+A/"1B_&8D^Z@G.ZFHO"KIO*OJ^^M MK?"ULO"]NO'#P._'Q?',RN_2T._=W/#HZ/'P\._[_/<8"/<8$//>$6O2"8O6' M;/6">_:(@O6,:/:*?_>.B/:/;/6//:4C?N8D?>9=_>=>O>;@/>;E/B? MFO>E>_>AA?:ED?>DG?>LH_BVHOFTK?BWL_B^M/K&O/?'P_K/Q/C4T?C:U_G? MW?;EY/OMZ??V]O7]_?]K8_]S:_YY_R%?O^$A/F,A/^4E/^_^E MC/REH/BJB_BNE/ROJ/NPK/FRE?FUFO^UI?RXL_J^K/R^N_K#K?K'MO_&M?S' MPOO.OOS.Q_O0S/_6O?O5Q_S6T/SUOWCV/WEWOWJYO_OWOWP[OWT\?[X M]_O[_/[^_O_[\*&AH7Y^?O\```#_`/__````__\`_P#______PC^`.L)'$BP MX+QX[Q*^BQ=O7L&'$"-*G$BQHL6+&#-JW,BQH\>/($.*'$FRI,F3*%.J7,FR M9#QPMD!9&M.E"Y@N9B9Q2K4+F+N60(,*'4JTJ-&C2),J7J6;2$F?LV+M:K6N+F6GM7:BS"F#-KWLRYLV>ET;1HV9)% MC;F)P3!9Q9HEU>?7L&/+GDT[L*K56=C(JRA/U=TLH&H+'TZ\N/'C&G>-OFH& M&<91N$?/.@=O/O[___<9`]$XPZC3&T($,N?-3/?(@Z*!2[/C2BDQFW-3%&)-H MPA,YZ!4DR"_!_"?B?N9T^%`QY[#C($,#&5/@BS#&2$P\%S7$D3O@\,*++;'H MZ`LY[$PTS"Z[G-;>D4@2QLX8RVDQR3L:N7.8%FLD$X\95XS61658;9G7%:Q` MQ$L6780Q!AJ3I#D)&FB,0<<\K(QA!IIJIFD&*%!JE(PJH*3BYY]^$/C0,G4D8DM=I"RRZ])9JMM6F.REL:S&;V7197UD#(G:9MBA:89W3T$S)J' MP97%%5=4`<<\J=1TK+Q4<0+N182<4<6^<#U:A19^0&1,*TP^VL4:I,2R2RQR MK!&&75F1^88P!`'"B27H;JKL)&VT88N)!!5RQ"9I2"4OO5?81%6Z,X\1C$7% MS*0%I%71RP@0V!J3RL7&\KL<:7$!/9`>I9!"BBVVI-+'ME17'98J6V$U1H`: M!4/:&C26Y\MVF^:@QT(V/G10/.Z$`E\8M@Q#3H#RN,-.,&MLF@7^*2A35$QD M(&.EQ1BM\.++O_7,L\N46811*>+SL+/+)"%GU04I7`L4#SEJI&LSXA3),TP: M1VO![C".\4)V95ID`HPZ[O2M=D)^M'P7&KZP$ZHO\6YAB2W"#"/\+ZV`?'06 M:80Z#QU_W-&G'$O4@:W5U%95Z3':EWP(1$Q MJ_\F1T?QI**N(!$9DXE=6J1Q#D7S&*8]:9'X14&,88:C8>4-'0'&EK:@A1XL M:"!T^-\6S%`HC@R"=%=9PS$(<@O2:&$'OI@>0>;Q"_#@Q1)YF@<1G""#263" M#X&0GO5F2$.4Q&,-VM.")$!7$7/L(AC^*'O/IMIED5@@IA43048!TW49C@!B M2XS8"T3\8$+2^.LBQGC#_Y1E!V40Q`Z;XL$@."(,LH6A@@-10B-8%PQA47*:$=`#$00;V@& M,,AAB3:$2I'8S*9%0"'!+&0B2"-)Q2OG2!%;:.EF$^GD)^\"!G1FY!B6R,(. M6%D//R#S*F'^P*-&7+FI.A`D@JSKP34O(HA(C`8,"=ME+^^BA5]V))C#9()` ML+>:,:!Q(G*PRAT)(HA;^&D7?M2F2$=:D%ADS9%CX,4F06*,27Y-=@-Q1QFH M$H>*J'.!7)*+D3`"SRSP(*0"(<9A!*?+C,"+#U9* M$%YRR:$<@>@6AP3*S08HT68FH4Q.-,@,"6I6A,)CG1A91*'"\EM-C6U MB;3"*CDX)44Z:94V3&*=68C$12G2TY\2Y(;:.Z-'!`$>G-HQ$`)11D99UP81 M4B09;=#2$2)BUN^56=G^PB1XD:>. MS))+66@#3-E'&G_:%`U4X<4Y',N:'M!3(H4%:GTJ4]./^$)O:P`+;YWJSHH, M8SNF&VA5%RJXSVHDM!)-!BF.9H;C1L07C=-G:]>K5EZLTY%9,$,K+-61N58& M!X,=R'NT$(G:IA.X6=!%/>J(VS5H%[GQ-*Q`2,DE8(`$LZ^\@T"2P4TN`>$B MRA#":++@6XATMKL?`6\]"-&&RMB2H&FP!&39RV*1SN-^;A4#$F20(%0->YS29(LT4.\.A'ER`*:C:S M"&+0D7M4NLXHL*Q$8G!F26LD"BC`QP8Z(`(48-JF)?@TG>],D"7!%K=;P$1< M,V+?NXQ!KX?%H9../!"^!G@@J'AE:RR2Y'K<6'N/)+9-L[P;@SD3.0\,````$1@T'R.0+M-,)$8-*#=^,XWOC.` MYPNT^P*654&[-_`0%.#;U!")`0;NG6\&3&`$KP;)`?2M[P988-$3Z0#%*M[`H2XB+\!`/",S`,?)=@*T^ M1-D,0,5SML.04'#[,L3"W&I7[\JZ+J0"G(B.;`2C@,]X!H'>)\!T`#-B`"/#!__[CXP,J M$!$K<&\.@'"$L'*?]W$A!P#X(!')L'+NQFH;,`$,AP'AIQ$'<&\-0`(H<`\> MF`(PUVZH-Q& MAG81)1`7!%MEQ0K[TWYSAV\3,'GU<'?^>;=W)9>`IR9O`#![`H&$[28"!!$% M,7<"$K$"EL<`^"!"!Y`!%7`#(N$"!+B"`Q$#,0>)$%&"&L`1+=AN+[@1,1B+ M'?&`^">"-ZB`@U=S`A%G$T")-E=R#,"+&J$.H$`9/Y=CTM9K68$&SW)CHH%` M7!AD#W$.AT%<0`X$"EJ=S MTY.!```!K1=X[48!X9=Z'U%YF">*#T$"[::0F]=NK;@1KSAZI2=R(.$".H=W M#7"0$'$##]#^;DU8$(20B_6`A!WW$>1PC%+X&Z#0CP)Q6UPBAG.E6--(%4U' M$,$0A;@U!L!7$$D&#)L2!L-`$F"44QH0%?18?$8;@U%CTT&+:4@ MA5:!!KL`E.OQCPS'`#-YB/-7?Q%Q?RW)$1XI@XVW`?AW;Q#`D?4@>#)X@R4( M>"I!BAL)$0('`!8H$:SHBBYXD@`P`!P`HOY`9.VB8:($3@)>AMA#J!P M3\F8!4A4$<+W&YA0#^R3%]NF$5WX$+X090#$?DB68!ND#==G7ASQ"U&66X<% M7$Y5=A\G1+]6$?(XEN3'0&4Y$/'P=/F8!6B@"VPY'O_H`0LH>0/^,9!T"1%V MZ9(5H9$.4'.$$'(54((I,!!\"0`@29$`,`$V*7$$")@$89D<0((B"9FP*)F4 MV1'S8'H-<`-0<&^%6!&2&)<9\9DCH0YT0)HQU@75%1'#M2G9L%^1$'9+1XT1 MT4%Z@T(/D61(-V:\N1'D$&6M(T*WL$[2Z"&TI`5Q$)_).6X8)DQ:T)S..0?( M&)UI$*%'\H\D8&_MIIF].)<%R8@:`04Q2&L0*0(:V8!RB7^T)H";N`'T:1+B MV9F2J(H/49CZ:9(PN)\>H8D`4`'7MH`(VF_M%@'IN1$X28PA80QT,%3Y>!_N M(4$UP4!9N!&QR8)LAUN0=)M35P\ARH;^ZA425993FB!"!/1)86"/!*$,=S!, MM8*P)B7*1`%IC>"$!F@$V&+[>8`%=`!^(`",R"J%X&8#:`",;"LRVH" MCEB@CKEX*?"JU.JF!5&2M)@1,:@!TTJMKBJK#P%[.QB8.F<1BSEX&(`/)G`` MX%H0DH@/W4JM*H"1&;$P0T6;6X!?%4$,^.J.!Y:A2#D1\@`=>A,$(I1DNLDE MWT@2A^I(;?`0:5<90D"3.#0NHAJC9+FIA\4+DC`S/Y<%<4"OZD&JAQB#C/>D M!&E_ME=QX#G^$'G9F.PVGO7`EZQ7#P:GEQ0Q`S&H;PQP`:#)$1KI=PT0I2'I M=Q[0JY'YI7YWIGPFC#4'I`Y0I45+<1%``C8IB29GI!W!#J#`0#23#1:!5$/9 M$7M*'LW'):\I$$GF-6;X?")1HIN2E5[())6Q`UM63V2#!Q>!LFB!:J0)"1;#V(*`)28JBI[>2U`$0?@`.Y&");(Q5`M%-K8+MU7#TGV!"Z5!1,[$E[^Z534-Q"2 MM4[4IPQS17P4P;\UP4"U*.#Z*3U`'L-$`/)0*2-FW^5)FA[ M!:`QH)%"^@+WM@'EV6[Q=Q$W<`_XP`%#B&]_&1*(R0`9L`$0'',6T*X$48*_ M6&DM>VVKJQ$Q>`&?)K4/L7+]60\EX)"GM0(DX`&@B'.;^Y(QIW^/1@(4G!'G ML$1<`I8.:,-WL;XX>5>JD5D:GE.Q'S$`RG&EH19:0L9C@US9:: M=['%'A%'PX>AUS:.3J6W`\9`%H41XIM5-+H#IF@1>/->6Q`&7<4>9%P/*K") M(K!R:5P0W^D1)[`8!*ZAQ#O`!)7!;*5Y%? M`%/*%>&;(D.5R8";`L$'M,G#'U$(0+!%+QH1?P#%:T`(RO`#-.7-NPQ:<\"< M&FL1_2.GE6'^!.S;;NXK$(/8`'W;%;#SV(>>UVM!\AIM!* M>?-)$#F(?TQ;$.6L)XB,$3$XPA@!_G<2IQ@+%6,196ZU2Q( MT%M@T`![;!BQ"S2#!L%P/PHV"&<@07+[$6KX/UU08Q!1"-EV%SC@![.4&$U< M$=;():&`O`\Q*GTELA9!#%E6&>4XQNV+S_HFTP-!TQR!J_E&BZCX?J:+9RMP M@21@>2.8D987SN+\;S:9U!F!K?S)$38-``\``:[]VD1XU`(1`YI,$(00,=VC,003Y@NJP`M3C03$M=C&W-C7 MF@'YEMOU<'\,\`$F<.58?N4E<-\3$:X"-QB#&7#G?EX"F[V.CNC4 M`Q'-U`P1E-UN$*`!^'`"AC9_+!>,/>WG6KYHC(087LW;9ZL%<K`I[037)9X%2D,1U\LE:2#+%!%57*)T&S$$!Z4$R;<&5(`#CGH1 M%Y32Z]W2D=UW4GY_EY>Z$7$`GPOMR,QPXUIO"VBT(K&K4FO@M%O!G:>U'R=Z M?A1F'YYN-?I^#3*%W&%K'&:>5SJ M'`'C>9&4/!5/Z0*^](!+K!,^'0$([1-?_*YF:W@7`ET14$#08JP1C,5`R9-\ M;9`%.-#7_`/^G6!PX^F1#%`.`$+Z$$4-W][YN7XWDNG4U`\!!?;,XBB0[3)G MM=N^B5([OVGZRP0!>T+[L[[J=Y[N MX7WL=P*.6/'A3=5)$'UZ%8XP\:"\3BP0XU@!OM#;O`S%-UG% M\'A!=AB!CW6[]A!!9)5ARZ<=!\M!1"0V&E>7Q]`9"2-:'?-P#QN@`4>=#".@ M`1N0P5&@:A#<^9X_^=_^$"7PP$$O`AGP`43/20P`28PPPG:`9@O MJP?0^;Z+`IC_^9_O`7B<#"6P^[P/P4`XYI<__)VO`3Y/D_B`^6W^/A"WKP$> M,.8WJ0(>@`'OG`'XD,';^0'"/_P:,'OS`)W`,?;UT+!9`?`!K_8>T?9DS1'6 M*$%T7P]QOT7/P!&U/AKJ:!&#D-A8$00`44_@0((%#0Y"DV7+PH5CA!F$.%!9 MK(59UL0;2*C-0C!](D*,,HFAEC?*/IY$F5+E2I8M7;Z$&5/F3)HU;=[$F9.F M*BP,MV3)I$YEL#`^@6)_/CPOT97'$.JUSEVQMB=\P6*+&RF> M-R;SC"9;Y-HBJX_B2>4GRBP[:1Y>YOLIJ)B4J>.J+HRP*1@*\=I"$V",`9"@ M>-2)9CZ%K(%(%=FTF.27DX!9JJ(TC"$O1QUWY+%''QU[9XTLAAR-R##&*"J+ MJXB*DJ9B-C%-RC$S>D*-+4"8I#CUO(BJ" MT"W>T";+@>(!AY0NF,(SDS)_!#5444=*08HHJC,-"V2-DF@>4R=(\*1Y>ONP) MK[+&L(033C0Q(XPL6-6MCM=HBD6A.G*2T`PBC1KW"G+/*HN43PU:(HQL.=MB MC$F\M62,+GK"8[WT)F3;&I59+8%+^B:2B<;&X MHNBB%0H#%%[.KN>=>V6V6CHF&%%[J3BD>]=MMOQSUWW7?GO7???P<^>.&')[YXXX]'/GGEEV>^>>>?ASYZZ:>G MOGKKK\<^>^VWY[Y[[[\'/WSQQR>_?///1S]]]==GOWWWW\\=;OGGI[]^^^7! M/W_]Y9F[?___!V``_8<,`A(P'L@X(#+^WK%`!C;0@0^$H`/=,4$*5M""%\1@ M!B_8C@FR@QWM`"$(/3A"$I;0A"?TX#K8L0X6MM"%+X1A#&5HLG34T(8WQ&$. M=;A#'0[#AS\$8A"%.$0B^K`<1T1B$I6X1"8B,1A/A&(4I3A%*D)1'%?$8A:U MN$4NBB,86YQ9&,4X1C("XQMG1&,:U;A&-K;1C6\\HR_D.$W.(WQ`%'6JJQ%]_0(S=TN4M> M]M*7O]SE-H3^>0UL7,.8QT1F,I6YS&3FPIG/S`4MI#E-:E;3FM?$YBMF\0IN M=O,5K@!G.,4Y3G*6,YRK0.^$9SSEV4Y1U-.>]\1G/O5IST[T MTY__!&A`!3I0@A:TGY=`:$(5NE"&-C2AE(!H1"4Z48I.E`P7Q6A&-;I1CI)! M#!X50TA%.E*2EG2D7T!I2E6Z4I:V]`M<@"E,M3!3FM;4IC:-%='&MM.B68$* MFL!/)84JOTMB,I,%1&H!-_D.=W"RDT\]H3M`.542ILRJI*0A#[6ZU1J:HQQ> M;6(2NSA6LH8C'.(X*UK-NE:VMM6MX6@C7,]H1US^T:YWS:,N>^&T2VQP`QM_ M!6Q@!3M8P@)6%]@X+&)UL5C&-M:QCX6L+J`Y6]M:WNG5# M<(4[7.(6U[C"94-RE;M<-HC.N<_%1'2CJX;H6L*ZU[5N&K2KW;.5#VX$X=O; IACK>\$*+O.=%+WKK`:#TMM>][X5O?.4[7_K6U[[WQ>]\B[J_^08$`#L_ ` end -----END PRIVACY-ENHANCED MESSAGE-----