EX-99.2 3 g16180exv99w2.htm EX-99.2 EX-99.2
Exhibit 99.2

4 of 9

Synovus
INCOME STATEMENT DATA
(Unaudited)
(In thousands, except share data)
                         
    Nine Months Ended  
    September 30,  
    2008     2007     Change  
 
Interest income (taxable equivalent)
   $ 1,420,730       1,688,474       (15.9 )%
Interest expense
     597,375       822,354       (27.4 )
 
                  
 
Net interest income (taxable equivalent)
     823,355       866,120       (4.9 )
Tax equivalent adjustment
     3,487       3,857       (9.6 )
 
                  
 
Net interest income
     819,868       862,263       (4.9 )
Provision for loan losses
     336,016       99,566       237.5  
 
                  
 
Net interest income after provision
     483,852       762,697       (36.6 )
 
                  
 
Non-interest income:
                        
Service charges on deposit accounts
     82,594       83,157       (0.7 )
Fiduciary and asset management fees
     37,612       37,652       (0.1 )
Brokerage and investment banking revenue
     25,591       23,381       9.5  
Mortgage banking income
     18,323       20,876       (12.2 )
Bankcard fees
     39,788       35,370       12.5  
Net gains on sales of available for sale investment securities
     —       891     nm
Other fee income
     30,039       29,749       1.0  
Proceeds from Visa IPO
     38,542       —     nm
Other non-interest income
     74,141       58,953       25.8  
 
                  
 
                        
Total non-interest income
     346,630       290,029       19.5  
 
                  
 
Non-interest expense:
                        
Salaries and other personnel expense
     346,342       345,690       0.2  
Net occupancy and equipment expense
     93,188       82,914       12.4  
FDIC insurance and other regulatory fees
     18,210       7,239       151.6  
Foreclosed real estate
     64,764       2,812     nm
Losses on impaired loans held for sale
     9,944       —     nm
Visa litigation (recovery) expense
     (17,430 )     12,000       (245.3 )
Goodwill impairment
     27,000       —     nm
Professional fees
     20,311       14,948       35.9  
Restructuring charges
     13,299       —     nm
Other operating expense
     150,559       139,281       8.1  
 
                  
 
                        
Total non-interest expense
     726,187       604,884       20.1  
 
                  
 
                        
Minority interest in consolidated subsidiaries
     6,347       —     nm
Income from continuing operations before income taxes
     97,948       447,842       (78.1 )
Income tax expense
     31,772       158,050       (79.9 )
 
                  
 
                        
Income from continuing operations
     66,176       289,792       (77.2 )
 
                        
Income from discontinued operations, net of income taxes and minority interest (1)
     —       154,654     nm
 
                  
 
                        
Net income
   $ 66,176       444,446       (85.1 )%
 
                  
 
                        
Basic earnings per share
                        
Income from continuing operations
   $ 0.20       0.89       (77.4 )%
Net income
     0.20       1.36       (85.2 )
 
                        
Diluted earnings per share
                        
Income from continuing operations
     0.20       0.88       (77.3 )
Net income
     0.20       1.35       (85.2 )
 
                        
Cash dividends declared per share
     0.40       0.62       (35.0 )
 
                        
Return on average assets from continuing operations*
     0.26       1.24     (98 )bp 
Return on average assets *
     0.26       1.82       (156 )
Return on average equity from continuing operations*
     2.58       9.96       (738 )
Return on average equity *
     2.58       15.28       (1,270 )
 
                        
Average shares outstanding — basic
     329,195       326,443       0.8 %
Average shares outstanding — diluted
     331,317       330,001       0.4  
 
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 nine months ended September 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.

 

5 of 9

Synovus
             
INCOME STATEMENT DATA
(Unaudited)
(In thousands, except per share data)
                                                 
    2008     2007     3rd Quarter  
    Third     Second     First     Fourth     Third     ‘08 vs. ’07  
    Quarter     Quarter     Quarter     Quarter     Quarter     Change  
Interest income (taxable equivalent)
   $ 456,400       459,273       505,057       554,989       573,545       (20.4 )%
Interest expense
     187,425       184,718       225,232       267,102       281,478       (33.4 )
 
                                    
 
                                                
Net interest income (taxable equivalent)
     268,975       274,555       279,825       287,887       292,067       (7.9 )
Tax equivalent adjustment
     1,177       1,134       1,176       1,202       1,228       (4.2 )
 
                                    
 
                                                
Net interest income
     267,798       273,421       278,649       286,685       290,839       (7.9 )
Provision for loan losses
     151,351       93,616       91,049       70,642       58,770       157.5  
 
                                    
 
                                                
 
Net interest income after provision
     116,447       179,805       187,600       216,043       232,069       (49.8 )
 
                                    
Non-interest income:
                                                
Service charges on deposit accounts
     28,132       26,070       28,391       28,985       28,736       (2.1 )
Fiduciary and asset management fees
     12,095       12,898       12,621       13,110       12,524       (3.4 )
Brokerage and investment banking revenue
     7,898       9,206       8,487       8,598       8,123       (2.8 )
Mortgage banking income
     4,476       5,686       8,161       6,130       5,955       (24.8 )
Bankcard fees
     13,371       14,198       12,218       12,400       11,923       12.1  
Net gains on sales of available for sale investment securities
     —       —       —       90       186     nm
Other fee income
     8,773       10,081       11,185       9,559       9,910       (11.5 )
Other non-interest income
     24,210       29,559       20,370       20,126       28,837       (16.0 )
Proceeds from Visa IPO
     —       —       38,542       —       —     nm
 
                                    
 
                                                
Total non-interest income
     98,955       107,698       139,975       98,998       106,194       (6.8 )
 
                                    
 
                                                
Non-interest expense:
                                                
Salaries and other personnel expense
     114,535       109,676       122,130       109,468       115,941       (1.2 )
Net occupancy and equipment expense
     31,852       31,126       30,211       29,976       28,055       13.5  
FDIC insurance and other regulatory fees
     5,960       6,172       6,079       3,108       2,541       134.6  
Foreclosed real estate
     43,205       13,677       7,881       12,924       1,662     nm
Losses on impaired loans held for sale
     —       9,944       —       —       —          
Visa litigation (recovery) expense
     —       —       (17,430 )     24,800       12,000     nm
Goodwill impairment
     —       27,000       —       —       —     nm
Professional fees
     6,916       8,454       4,940       6,307       4,703       47.1  
Restructuring charges
     9,048       4,251       —       —       —     nm
Other operating expense
     47,334       55,663       47,563       48,626       47,523       (0.4 )
 
                                    
 
                                                
Total non-interest expense
     258,850       265,963       201,374       235,209       212,425       21.9  
 
                                    
 
                                                
Minority interest in consolidated subsidiaries
     4,650       138       1,559       —       —     nm
Income (loss) from continuing operations before income taxes
     (48,098 )     21,402       124,642       79,832       125,838       (138.2 )
Income tax (benefit) expense
     (21,180 )     9,302       43,648       26,690       42,261       (150.1 )
 
                                    
 
                                                
Income (loss) from continuing operations
     (26,918 )     12,100       80,994       53,142       83,577       (132.2 )
 
                                                
Income from discontinued operations, net of income taxes and minority interest (1)
     —       —       —       28,717       51,366     nm
 
                                    
 
                                                
Net income (loss)
   $ (26,918 )     12,100       80,994       81,859       134,943       (119.9 )%
 
                                    
 
                                                
Basic earnings per share
                                                
Income (loss) from continuing operations
   $ (0.08 )     0.04       0.25       0.16       0.26       (132.0 )%
Net income (loss)
     (0.08 )     0.04       0.25       0.25       0.41       (119.8 )
 
                                                
Diluted earnings per share
                                                
Income (loss) from continuing operations
     (0.08 )     0.04       0.24       0.16       0.25       (132.3 )
Net income (loss)
     (0.08 )     0.04       0.24       0.25       0.41       (120.0 )
 
                                                
Cash dividends declared per share
     0.06       0.17       0.17       0.21       0.21       (70.7 )
 
                                                
Return on average assets from continuing operations*
     (0.31 )%     0.14 %     0.99 %     0.65       1.05     (136 )bp
Return on average assets *
     (0.31 )     0.14       0.99       0.96       1.62       (193 )
Return on average equity from continuing operations*
     (3.18 )     1.40       9.43       5.17       8.25       (1,143 )
Return on average equity *
     (3.18 )     1.40       9.43       7.97       13.32       (1,650 )
 
                                                
Average shares outstanding — basic
     329,438       329,173       328,970       328,052       327,215       0.7 %
Average shares outstanding — diluted
     329,438       331,418       331,719       329,453       330,160       nm  
 
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.

 

6 of 9

Synovus
BALANCE SHEET DATA
(Unaudited)
(In thousands, except share data)
                         
    September 30, 2008     December 31, 2007     September 30, 2007  
 
ASSETS
                        
Cash and due from banks
   $ 497,419       682,583       642,882  
Interest earning deposits with banks
     2,845       10,950       4,318  
Federal funds sold and securities purchased under resale agreements
     269,600       76,086       113,654  
Trading account assets
     101,889       17,803       33,009  
Mortgage loans held for sale
     105,068       153,437       165,837  
Impaired loans held for sale
     13,554       —       —  
Investment securities available for sale
     3,831,126       3,666,974       3,628,766  
 
                        
Loans, net of unearned income
     27,647,983       26,498,585       25,774,656  
Allowance for loan losses
     (463,836 )     (367,613 )     (356,887 )
 
                  
Loans, net
     27,184,147       26,130,972       25,417,769  
 
                  
 
                        
Premises and equipment, net
     595,646       547,437       527,414  
Goodwill
     492,138       519,138       519,138  
Other intangible assets, net
     23,579       28,007       29,947  
Other assets
     1,233,234       1,185,065       1,112,407  
Assets of discontinued operations
     —       —       1,490,671  
 
                  
 
                        
Total assets
   $ 34,350,245       33,018,452       33,685,812  
 
                  
 
                        
LIABILITIES AND SHAREHOLDERS’ EQUITY
                        
Liabilities:
                        
Deposits:
                        
Non-interest bearing retail and commercial deposits
   $ 3,479,314       3,472,423       3,566,749  
Interest bearing retail and commercial deposits
     18,194,976       17,734,851       17,744,117  
 
                  
 
Total retail and commercial deposits
     21,674,290       21,207,274       21,310,866  
Brokered deposits
     6,174,573       3,752,542       3,325,430  
 
                  
 
Total deposits
     27,848,863       24,959,816       24,636,296  
 
Federal funds purchased and other short-term liabilities
     674,501       2,319,412       2,581,087  
Long-term debt
     2,120,546       1,890,235       1,680,478  
Other liabilities
     284,220       407,399       392,697  
Liabilities of and minority interest in discontinued operations (1)
     —       —       340,898  
 
                  
 
                        
Total liabilities
     30,928,130       29,576,862       29,631,456  
 
                  
 
                        
Minority interest in consolidated subsidiaries
     30,606       —       —  
 
                        
Shareholders’ equity:
                        
Common stock, par value $1.00 a share (2)
     335,972       335,529       334,095  
Additional paid-in capital
     1,114,142       1,101,209       1,107,653  
Treasury stock (3)
     (114,117 )     (113,944 )     (113,944 )
Accumulated other comprehensive income
     36,253       31,439       23,339  
Retained earnings
     2,019,259       2,087,357       2,703,213  
 
                  
Total shareholders’ equity
     3,391,509       3,441,590       4,054,356  
 
                  
 
                        
Total liabilities and shareholders’ equity
   $ 34,350,245       33,018,452       33,685,812  
 
                  
 
(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: 330,294,672; 329,867,944 and 328,433,944 at September 30, 2008, December 31, 2007, and September 30, 2007, respectively.
 
(3)   Treasury shares: 5,676,830 at September 30, 2008; 5,661,538 at December 31, 2007 and September 30, 2007.

 

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Synovus
AVERAGE BALANCES AND YIELDS/RATES *
(Unaudited)
(Dollars in thousands)
                                         
    2008   2007
     
    Third   Second   First   Fourth   Third
    Quarter   Quarter   Quarter   Quarter   Quarter
     
Interest Earning Assets
                                        
Taxable Investment Securities
   $ 3,670,315       3,556,381       3,485,370       3,496,843       3,495,017  
Yield
     4.91 %     5.00       5.01       4.90       4.82  
Tax-Exempt Investment Securities
   $ 128,241       137,606       154,408       164,587       170,211  
Yield (taxable equivalent)
     6.74 %     7.34       7.00       6.82       6.72  
Trading Account Assets
   $ 30,584       26,531       36,652       29,698       56,217  
Yield
     6.77 %     5.88       6.96       7.05       7.15  
Commercial Loans
   $ 23,302,028       23,183,128       22,763,954       22,157,460       21,820,687  
Yield
     5.78 %     5.96       6.79       7.69       8.13  
Consumer Loans
   $ 1,006,685       966,111       931,644       928,942       915,847  
Yield
     7.34 %     7.53       7.86       8.05       8.17  
Mortgage Loans
   $ 1,312,166       1,252,275       1,241,018       1,237,962       1,152,621  
Yield
     6.38 %     6.54       6.84       7.04       7.10  
Credit Card Loans
   $ 292,239       291,143       296,428       285,410       277,445  
Yield
     8.72 %     8.60       9.65       10.26       10.96  
Home Equity Loans
   $ 1,656,387       1,605,601       1,557,852       1,517,510       1,444,411  
Yield
     5.15 %     5.31       6.48       7.34       7.80  
Allowance for Loan Losses
   $ (422,331 )     (397,392 )     (381,695 )     (357,283 )     (335,406 )
     
Loans, Net
   $ 27,147,174       26,900,866       26,409,201       25,770,001       25,275,605  
Yield
     5.95 %     6.12       6.94       7.79       8.21  
Mortgage Loans Held for Sale
   $ 108,873       157,049       121,806       108,044       176,448  
Yield
     6.91 %     5.86       5.57       6.12       6.91  
Federal Funds Sold and Other Short-Term Investments
   $ 211,323       201,081       128,381       110,745       85,094  
Yield
     1.88 %     1.83       3.41       4.63       5.76  
     
Total Interest Earning Assets
   $ 31,296,510       30,979,514       30,335,818       29,679,918       29,258,592  
Yield
     5.81 %     5.96       6.69       7.42       7.78  
     
 
                                        
Interest Bearing Liabilities
                                        
 
                                        
Interest Bearing Demand Deposits
   $ 3,076,447       3,154,884       3,200,650       3,200,408       3,047,279  
Rate
     1.07 %     1.10       1.56       1.99       2.24  
Money Market Accounts
   $ 6,771,080       6,826,724       7,017,644       7,502,063       7,421,900  
Rate
     2.19 %     2.15       2.98       3.92       4.40  
Savings Deposits
   $ 457,526       461,970       448,581       454,204       479,479  
Rate
     0.25 %     0.25       0.28       0.35       0.48  
Time Deposits Under $100,000
   $ 3,055,465       2,814,714       2,777,764       2,790,869       2,917,089  
Rate
     3.69 %     3.97       4.44       4.69       4.81  
Time Deposits Over $100,000 (less brokered time deposits)
   $ 4,731,468       4,316,454       4,171,716       4,006,350       4,029,091  
Rate
     3.79 %     4.09       4.69       4.98       5.12  
     
Total Interest Bearing Core Deposits
   $ 18,091,986       17,574,746       17,616,355       17,953,894       17,894,838  
Rate
     2.62 %     2.68       3.29       3.84       4.16  
Brokered Money Market Accounts
   $ 1,271,113       1,082,805       854,385       467,346       476,377  
Rate
     2.27 %     2.54       3.50       4.89       5.34  
Brokered Time Deposits
   $ 3,968,783       3,495,947       3,300,677       2,941,592       3,188,310  
Rate
     3.61 %     3.64       4.35       4.98       5.19  
     
Total Interest Bearing Deposits
   $ 23,331,882       22,153,498       21,771,417       21,362,832       21,559,525  
Rate
     2.77 %     2.82       3.46       4.02       4.33  
Federal Funds Purchased and Other Short-Term Liabilities
   $ 1,459,097       2,302,986       2,253,640       2,472,339       1,930,598  
Rate
     1.94 %     2.03       3.18       4.37       4.84  
Long-Term Debt
   $ 2,119,321       2,048,213       1,930,412       1,819,198       1,660,788  
Rate
     3.32 %     3.44       4.21       5.08       5.32  
     
Total Interest Bearing Liabilities
   $ 26,910,300       26,504,697       25,955,469       25,654,369       25,150,911  
Rate
     2.77 %     2.80       3.48       4.12       4.43  
     
Non-Interest Bearing Demand Deposits
   $ 3,463,563       3,448,794       3,338,106       3,422,684       3,405,622  
     
Net Interest Margin
     3.42 %     3.57       3.71       3.86       3.97  
     
 
*   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.

 

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Synovus
LOANS OUTSTANDING AND NONPERFORMING LOANS COMPOSITION
(Unaudited)
(Dollars in thousands)
                                 
    September 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
   $ 555,207       2.0 %   $ 4,076       0.5 %
Hotels
     830,981       3.0       635       0.1  
Office Buildings
     960,319       3.5       4,955       0.7  
Shopping Centers
     1,005,094       3.7       684       0.1  
Commercial Development
     912,073       3.3       13,330       1.7  
Other Investment Property
     948,253       3.4       487       0.1  
 
                        
Total Investment Properties
     5,211,927       18.9       24,167       3.1  
 
                        
1-4 Family Construction
     1,772,559       6.4       214,855       27.9  
1-4 Family Perm / Mini-Perm
     1,367,807       5.0       41,761       5.4  
Residential Development
     2,222,496       8.0       204,185       26.5  
 
                        
Total 1-4 Family Properties
     5,362,862       19.4       460,801       59.8  
 
                        
Land Acquisition
     1,560,734       5.6       83,066       10.8  
 
                        
Total Commercial Real Estate
     12,135,523       43.9       568,034       73.7  
 
                        
Commercial, Financial, and Agricultural
     6,841,197       24.7       106,288       13.8  
Owner-Occupied
     4,388,945       15.9       68,780       9.0  
 
                        
Total Commercial & Industrial
     11,230,142       40.6       175,068       22.8  
Home Equity
     1,681,475       6.1       6,228       0.8  
Consumer Mortgages
     1,759,518       6.4       18,228       2.4  
Credit card
     291,162       1.1       —       —  
Other Retail Loans
     592,067       2.1       2,392       0.3  
 
                        
Total Retail
     4,324,222       15.7       26,848       3.5  
Unearned Income
     (41,904 )     (0.2 )     —       —  
 
                        
Total
   $ 27,647,983       100.0 %   $ 769,950       100.0 %
 
                        
LOANS OUTSTANDING BY TYPE COMPARISON
(Unaudited)
(Dollars in thousands)
                                         
    Total Loans     3Q08 vs. 4Q07             3Q08 vs. 3Q07  
Loan Type   September 30, 2008     December 31, 2007     % change (1)     September 30, 2007     % change  
     
 
                                        
Multi-Family
   $ 555,207       452,163       30.4 %   $ 449,814       23.4 %
Hotels
     830,981       614,979       46.9       591,527       40.5  
Office Buildings
     960,319       953,093       1.0       880,478       9.1  
Shopping Centers
     1,005,094       834,025       27.4       739,333       35.9  
Commercial Development
     912,073       961,271       (6.8 )     935,802       (2.5 )
Other Investment Property
     948,253       714,296       43.8       671,718       41.2  
 
                              
Total Investment Properties
     5,211,927       4,529,827       20.1       4,268,672       22.1  
 
                              
1-4 Family Construction
     1,772,559       2,238,925       (27.8 )     2,302,842       (23.0 )
1-4 Family Perm / Mini-Perm
     1,367,807       1,273,843       9.9       1,216,481       12.4  
Residential Development
     2,222,496       2,311,459       (5.1 )     2,269,844       (2.1 )
 
                              
Total 1-4 Family Properties
     5,362,862       5,824,227       (10.6 )     5,789,167       (7.4 )
 
                              
Land Acquisition
     1,560,734       1,545,933       1.3       1,476,042       5.7  
 
                              
Total Commercial Real Estate
     12,135,523       11,899,987       2.6       11,533,881       5.2  
 
                              
Commercial, Financial, and Agricultural
     6,841,197       6,420,689       8.7       6,264,683       9.2  
Owner-Occupied
     4,388,945       4,226,707       5.1       4,156,535       5.6  
 
                              
Total Commercial & Industrial
     11,230,142       10,647,396       7.3       10,421,218       7.8  
Home Equity
     1,681,475       1,543,701       11.9       1,478,694       13.7  
Consumer Mortgages
     1,759,518       1,667,924       7.3       1,620,730       8.6  
Credit Card
     291,162       291,149       —       280,192       3.9  
Other Retail Loans
     592,067       494,591       26.3       485,928       21.8  
 
                              
Total Retail
     4,324,222       3,997,365       10.9       3,865,544       11.9  
Unearned Income
     (41,904 )     (46,163 )     (12.3 )     (45,987 )     (8.9 )
 
                              
Total
   $ 27,647,983       26,498,585       5.8 %   $ 25,774,656       7.3 %
 
                              
 
(1)   Percentage change is annualized.

 

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Synovus
CREDIT QUALITY DATA
(Unaudited)
(Dollars in thousands)
                                                 
    2008   2007   3rd Quarter
       
    Third   Second   First   Fourth   Third   ’08 vs. ’07
    Quarter   Quarter   Quarter   Quarter   Quarter   Change
     
Nonperforming Loans (1)
   $ 769,950       626,571       515,302       342,082       224,055       243.6 %
Impaired Loans Held for Sale (2)
     13,554       6,365       42,270       —       —     NM  
Other Real Estate
     215,082       197,328       121,753       101,487       76,514       181.1  
Nonperforming Assets
     998,586       830,264       679,325       443,569       300,569       232.2  
 
                                                
Allowance for Loan Losses
     463,836       417,813       394,848       367,613       356,887       30.0  
 
                                                
Net Charge-Offs — Quarter
     105,328       70,652       63,813       59,916       33,013       219.1  
Net Charge-Offs — YTD
     239,793       134,465       63,813       117,055       57,139       319.7  
Net Charge-Offs / Average Loans — Quarter (3)
     1.53 %     1.04       0.95       0.91       0.51          
Net Charge-Offs / Average Loans — YTD (3)
     1.18       0.99       0.95       0.46       0.30          
 
                                                
Nonperforming Loans / Loans
     2.79       2.29       1.90       1.29       0.87          
Nonperforming Assets / Loans, Impaired Loans Held for Sale & ORE
     3.58       3.00       2.49       1.67       1.16          
Allowance / Loans
     1.68       1.52       1.46       1.39       1.38          
 
                                                
Allowance / Nonperforming Loans
     60.24       66.68       76.62       107.46       159.29          
Allowance / Nonperforming Loans (excluding impaired loans for which there is no related allowance for loan losses (4))
     202.29       206.82       220.89       337.49       334.42          
 
                                                
Past Due Loans over 90 days and Still Accruing
     49,868       39,614       43,009       33,663       22,667       120.0 %
As a Percentage of Loans Outstanding
     0.18       0.14       0.16       0.13       0.09          
 
                                                
Total Past Dues Loans and Still Accruing
     403,180       365,046       377,999       270,496       230,035       75.3  
As a Percentage of Loans Outstanding
     1.46       1.33       1.39       1.02       0.89          
 
(1)   Includes $540.7 million, $424.5 million, $336.5 million, $233.2 million, and $117.3 million at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, and September 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)
                         
    September 30, 2008   December 31, 2007   September 30, 2007 (3)
Tier 1 Capital
   $ 2,848,153       2,870,558       3,615,522  
Total Risk-Based Capital
     3,942,026       3,988,171       4,722,409  
Tier 1 Capital Ratio
     8.83 %     9.11       11.42  
Total Risk-Based Capital Ratio
     12.22       12.66       14.92  
Leverage Ratio
     8.51       8.65       11.16  
Equity as a Percentage of Total Assets
     9.87       10.42       12.04  
Tangible Equity as a Percentage of Tangible Assets (2)
     8.50       8.91       10.58  
Book Value Per Share
     10.27       10.43       12.35  
Tangible Book Value Per Share (2)
     8.71       8.78       10.67  
 
(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.
 
(3)   September 30, 2007 amounts include TSYS assets and ownership interest in TSYS shareholders’ equity.