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.