EX-99.2 3 dex992.htm SUPPLEMENTAL INFORMATION PREPARED FOR USE WITH THE PRESS RELEASE Supplemental Information prepared for use with the press release

Exhibit 99.2

Synovus

INCOME STATEMENT DATA

(Unaudited)

 

     Nine Months Ended  
(dollars in thousands, except per share data)    September 30,  
     2010     2009     Change  

Interest income (taxable equivalent)

   $ 1,010,278        1,151,124        (12.2 ) % 

Interest expense

     262,658        393,026        (33.2
                        

Net interest income (taxable equivalent)

     747,620        758,098        (1.4

Tax equivalent adjustment

     3,254        3,619        (10.1
                        

Net interest income

     744,366        754,479        (1.3

Provision for losses on loans

     878,872        1,418,485        (38.0
                        

Net interest expense after provision for losses on loans

     (134,506     (664,006     (79.7
                        

Non-interest income:

      

Service charges on deposit accounts

     80,867        88,100        (8.2

Fiduciary and asset management fees

     33,103        32,714        1.2   

Brokerage and investment banking income

     19,435        21,440        (9.4

Mortgage banking income

     22,295        30,949        (28.0

Bankcard fees

     29,989        26,619        12.7   

Investment securities (losses) gains, net

     (1,043     14,730        nm   

Other fee income

     16,372        24,145        (32.2

Increase in fair value of private equity investments, net

     5,703        1,237        361.0   

Gain from sale of MasterCard shares

     —          8,351        nm   

Other non-interest income

     18,736        25,539        (26.6
                        

Total non-interest income

     225,457        273,824        (17.7
                        

Non-interest expense:

      

Salaries and other personnel expense

     316,405        330,979        (4.4

Net occupancy and equipment expense

     91,877        93,291        (1.5

FDIC insurance and other regulatory fees

     52,794        58,401        (9.6

Foreclosed real estate expense

     142,837        320,171        (55.4

Losses on other loans held for sale, net

     73        1,703        (95.7

Visa litigation recovery

     —          (4,067     nm   

Goodwill impairment

     —          241        nm   

Professional fees

     34,299        28,406        20.7   

Data processing expense

     33,123        36,048        (8.1

Other operating expenses

     109,162        106,624        2.4   
                        

Total non-interest expense

     780,570        971,797        (19.7
                        

Loss from continuing operations before income taxes

     (689,619     (1,361,979     (49.4

Income tax benefit

     (21,034     (197,496     (89.3
                        

Loss from continuing operations

     (668,585     (1,164,483     (42.6

Income from discontinued operations, net of income taxes

     43,161        3,701        nm   
                        

Net loss

     (625,424     (1,160,782     (46.1

Net (loss) income attributable to non-controlling interest

     (313     2,365        (113.2
                        

Net loss attributable to controlling interest

     (625,111     (1,163,147     (46.3
                        

Dividends and accretion of discount on preferred stock

     43,079        42,675        0.9   
                        

Net loss attributable to common shareholders

   $ (668,190     (1,205,822     44.6   
                        

Basic EPS

      

Net loss from continuing operations attributable to common shareholders

   $ (1.09     (3.61     69.8

Net loss attributable to common shareholders

     (1.03     (3.60     71.5   

 

Diluted EPS

      

Net loss from continuing operations attributable to common shareholders

     (1.09     (3.61     69.8   

Net loss attributable to common shareholders

     (1.03     (3.60     71.5   

Cash dividends declared per common share

     0.03        0.03        —     

Return on average assets *

     (2.77 ) %      (4.50     173 bp   

Return on average common equity *

     (43.50     (66.15     nm   

Average common shares outstanding - basic

     651,507        334,808        94.6 

Average common shares outstanding - diluted

       651,507            334,808        94.6   

nm - not meaningful

* - ratios are annualized


Synovus

INCOME STATEMENT DATA

(Unaudited)

 

(dollars in thousands, except per share data)    2010     2009     3rd Quarter  
     Third
Quarter
    Second
Quarter
    First
Quarter
    Fourth
Quarter
    Third
Quarter
    ‘10 vs. ‘09
Change
 

Interest income (taxable equivalent)

   $ 327,577        338,795        343,906        362,911        377,839        (13.3 )% 

Interest expense

     81,030        87,700        93,928        105,853        121,989        (33.6
                                                

Net interest income (taxable equivalent)

     246,547        251,095        249,978        257,058        255,850        (3.6

Tax equivalent adjustment

     1,087        1,056        1,111        1,227        1,219        (10.8
                                                

Net interest income

     245,460        250,039        248,867        255,831        254,631        (3.6

Provision for losses on loans

     239,020        298,904        340,948        387,114        496,522        (51.9
                                                

Net interest income (expense) after provision for losses on loans

     6,440        (48,865     (92,081     (131,283     (241,891     102.7   
                                                

Non-interest income:

            

Service charges on deposit accounts

     26,711        27,876        26,280        29,651        29,699        (10.1

Fiduciary and asset management fees

     10,408        11,357        11,338        11,455        11,244        (7.4

Brokerage and investment banking income

     6,736        6,768        5,931        7,035        7,047        (4.4

Mortgage banking income

     10,163        6,318        5,814        7,572        7,037        44.4   

Bankcard fees

     10,674        9,800        9,515        9,521        9,114        17.1   

Investment securities (losses) gains, net

     (612     17        (448     (663     14,730        nm   

Other fee income

     5,440        5,402        5,530        7,055        7,733        (29.7

Increase (decrease) in fair value of private equity investments, net

     3,521        1,283        899        142        (6,853     nm   

Gain from sale of Visa shares

     —          —          —          51,900        —          —     

Other non-interest income

     8,723        5,174        4,839        13,179        6,484        34.5   
                                                

Total non-interest income

     81,764        73,995        69,698        136,847        86,235        (5.2
                                                

Non-interest expense:

            

Salaries and other personnel expense

     108,453        103,929        104,022        100,209        104,568        3.7   

Net occupancy and equipment expense

     31,311        30,588        29,978        29,878        31,231        0.3   

FDIC insurance and other regulatory fees

     16,178        18,970        17,646        17,913        15,341        5.5   

Foreclosed real estate expense

     50,890        46,440        45,507        34,098        101,437        (49.8

Losses on other loans held for sale, net

     —          12        61        —          608        nm   

Visa litigation recovery

     —          —          —          (2,374     (4,067     nm   

Goodwill impairment

     —          —          —          14,849        —          —     

Professional fees

     13,324        11,595        9,380        10,397        11,121        19.8   

Data processing expense

     11,117        11,323        10,683        11,615        11,194        (0.7

Other operating expenses

     37,738        35,905        35,520        32,908        45,387        (16.9
                                                

Total non-interest expense

     269,011        258,762        252,797        249,493        316,820        (15.1
                                                

Loss from continuing operations before income taxes

     (180,807     (233,632     (275,180     (243,929     (472,476     61.7   

Income tax expense (benefit)

     360        (5,057     (16,337     25,518        (31,528     (101.1
                                                

Loss from continuing operations

     (181,167     (228,575     (258,843     (269,447     (440,948     58.9   

Income from discontinued operations, net of income taxes

     —          —          43,161        889        1,146        nm   
                                                

Net loss

     (181,167     (228,575     (215,682     (268,558     (439,802     58.8   

Net income (loss) attributable to non-controlling interest

     277        (381     (209     (1     (255     208.6   
                                                

Net loss attributable to controlling interest

     (181,444     (228,194     (215,473     (268,557     (439,547     58.7   
                                                

Dividends and accretion of discount on preferred stock

     14,394        14,360        14,325        14,291        14,258        1.0   
                                                

Net loss attributable to common shareholders

   $ (195,838     (242,554     (229,798     (282,848     (453,805     56.8   
                                                

 

Basic EPS

            

Net loss from continuing operations attributable to common shareholders

   $ (0.25     (0.36     (0.56     (0.58     (1.32     81.1

Net loss attributable to common shareholders

     (0.25     (0.36     (0.47     (0.58     (1.32     81.1   

Diluted EPS

            

Net loss from continuing operations attributable to common shareholders

     (0.25     (0.36     (0.56     (0.58     (1.32     81.1   

Net loss attributable to common shareholders

     (0.25     (0.36     (0.47     (0.58     (1.32     81.1   

Cash dividends declared per common share

     0.01        0.01        0.01        0.01        0.01        —     

Return on average assets *

     (2.27 ) %     
 
(2.81
 

    (3.22 )%      (3.18     (6.77     450 bp   

Return on average common equity *

     (31.75     (43.59     (59.10     (53.25     (93.25     nm   

Average common shares outstanding - basic

     784,916        676,753        489,607        486,104        344,626        127.8

Average common shares outstanding - diluted

     784,916        676,753        489,607        486,104        344,626        127.8   

nm - not meaningful

* - ratios are annualized


Synovus

BALANCE SHEET DATA

(Unaudited)

 

(In thousands, except share data)    September 30, 2010     December 31, 2009     September 30, 2009  

ASSETS

      

Cash and due from banks

   $ 385,687        564,482        401,778   

Interest bearing funds with Federal Reserve Bank

     3,113,435        1,901,847        2,822,577   

Interest earning deposits with banks

     22,271        12,534        12,771   

Federal funds sold and securities purchased under resale agreements

     177,350        203,959        180,194   

Trading account assets, at fair value

     15,061        14,370        13,403   

Mortgage loans held for sale, at fair value

     241,353        138,056        112,115   

Other loans held for sale

     50,302        36,816        80,945   

Investment securities available for sale, at fair value

     3,326,133        3,188,735        3,298,815   

Loans, net of unearned income

     22,581,036        25,383,068        26,331,739   

Allowance for loan losses

     (836,355     (943,725     (918,468
                        

Loans, net

     21,744,681        24,439,343        25,413,271   
                        

Premises and equipment, net

     555,919        580,375        588,179   

Goodwill

     24,431        24,431        39,280   

Other intangible assets, net

     13,463        16,649        17,775   

Other assets

     1,284,675        1,709,821        1,629,377   
                        

Total assets

   $ 30,954,761        32,831,418        34,610,480   
                        

LIABILITIES AND EQUITY

      

Liabilities:

      

Deposits:

      

Non-interest bearing deposits

   $ 4,248,071        4,172,697        4,018,045   

Interest bearing deposits

     20,988,154        23,260,836        24,036,146   
                        

Total deposits

     25,236,225        27,433,533        28,054,191   

Federal funds purchased and other short-term borrowings

     410,353        475,062        1,030,520   

Long-term debt

     1,743,097        1,751,592        1,963,136   

Other liabilities

     324,077        299,730        389,034   
                        

Total liabilities

     27,713,752        29,959,917        31,436,881   
                        

Equity:

      

Shareholders’ equity:

      

Cumulative perpetual preferred stock, no par value (1)

     934,991        928,207        926,014   

Common stock, par value $1.00 (2)

     790,751        495,514        486,073   

Additional paid-in capital

     2,350,392        1,605,097        1,591,374   

Treasury stock, at cost (3)

     (114,176     (114,155     (114,155

Accumulated other comprehensive income

     91,112        84,806        108,032   

(Accumulated deficit) retained earnings

     (837,004     (148,428     139,322   
                        

Total shareholders’ equity

     3,216,066        2,851,041        3,136,660   

Non-controlling interest in subsidiaries

     24,943        20,460        36,939   
                        

Total equity

     3,241,009        2,871,501        3,173,599   
                        

Total liabilities and equity

   $ 30,954,761        32,831,418        34,610,480   
                        

 

(1) Preferred shares outstanding: 967,870
(2) Common shares outstanding: 785,057,350; 489,828,319; and 480,387,653 at September 30, 2010, December 31, 2009, and September 30, 2009, respectively
(3) Treasury shares: 5,693,452; 5,685,638; and 5,685,638 at September 30, 2010, December 31, 2009, and September 30, 2009, respectively


Synovus

AVERAGE BALANCES AND YIELDS/RATES *

(Unaudited)

(dollars in thousands)

 

     2010     2009  

Interest Earning Assets

  

Third

Quarter

   

Second
Quarter

   

First

Quarter

   

Fourth
Quarter

   

Third

Quarter

 

Taxable investment securities

   $ 3,055,400        3,068,634        2,952,188        2,983,914        3,209,718   

Yield

     4.08     4.40        4.70        4.79        5.06   

Tax-exempt investment securities

   $ 62,659        66,125        72,041        88,848        98,435   

Yield (taxable equivalent)

     6.82     6.85        7.16        7.03        7.06   

Trading account assets

   $ 14,970        16,763        14,881        14,356        13,439   

Yield

     4.88     5.47        5.30        5.60        8.22   

Commercial loans

   $ 19,041,500        19,982,523        20,880,069        21,722,140        22,850,126   

Yield

     4.92     4.92        4.85        4.82        4.73   

Consumer loans

   $ 4,048,929        4,100,458        4,174,320        4,249,316        4,303,592   

Yield

     5.25     5.33        5.36        5.32        5.37   

Allowance for loan losses

   $ (862,970     (964,212     (951,552     (906,484     (905,700
                                        

Loans, net

   $ 22,227,459        23,118,769        24,102,837        25,064,972        26,248,018   

Yield

     5.19     5.21        5.15        5.10        5.01   

Mortgage loans held for sale

   $ 194,487        131,700        96,440        114,906        194,158   

Yield

     5.16     5.54        5.49        5.29        5.39   

Federal funds sold, due from Federal Reserve Bank, and other short-term investments

   $ 3,720,649        3,591,353        2,435,880        2,995,367        1,653,546   

Yield

     0.25     0.25        0.24        0.24        0.24   

Federal Home Loan Bank and Federal Reserve Bank stock (1)

   $ 122,356        140,209        142,524        140,550        139,230   

Yield

     0.87     0.82        0.97        1.01        1.38   
                                        

Total interest earning assets

   $ 29,397,980        30,133,553        29,816,791        31,402,913        31,556,544   

Yield

     4.42     4.51        4.67        4.59        4.76   
                                        

Interest Bearing Liabilities

          

Interest bearing demand deposits

   $ 3,601,825        3,617,669        3,636,437        3,851,237        3,310,924   

Rate

     0.36     0.42        0.42        0.41        0.42   

Money market accounts

   $ 6,788,768        6,606,161        6,450,696        6,420,003        6,309,578   

Rate

     0.98     1.07        1.19        1.21        1.23   

Savings deposits

   $ 488,221        495,901        476,007        469,526        477,909   

Rate

     0.14     0.15        0.15        0.15        0.15   

Time deposits under $100,000

   $ 2,511,830        2,626,852        2,726,002        2,851,913        3,030,346   

Rate

     1.88     2.00        2.17        2.44        2.86   

Time deposits over $100,000

   $ 4,217,972        4,561,517        4,770,429        4,909,253        5,281,529   

Rate

     1.88     1.95        2.05        2.32        2.73   

National market brokered money market accounts

   $ 537,952        833,811        1,047,417        1,218,363        1,365,477   

Rate

     0.80     0.83        0.74        0.75        0.77   

National market brokered time deposits

   $ 3,261,113        3,681,660        3,871,581        4,011,648        3,941,977   

Rate

     1.89     1.90        2.13        2.41        2.66   
                                        

Total interest bearing deposits

   $ 21,407,681        22,423,571        22,978,569        23,731,943        23,717,740   

Rate

     1.28     1.36        1.48        1.62        1.85   

Federal funds purchased and other short-term liabilities

   $ 514,295        493,602        472,691        729,988        1,194,759   

Rate

     0.36     0.44        0.47        0.45        0.37   

Long-term debt

   $ 1,811,153        1,882,358        1,805,363        1,897,915        1,906,320   

Rate

     2.57     2.36        2.17        1.75        2.14   
                                        

Total interest bearing liabilities

   $ 23,733,129        24,799,531        25,256,623        26,359,846        26,818,819   

Rate

     1.36     1.42        1.51        1.59        1.80   
                                        

Non-interest bearing demand deposits

   $ 4,310,459        4,271,444        4,243,622        4,162,027        4,069,108   
                                        

Net interest margin

     3.33     3.34        3.39        3.25        3.22   
                                        

 

* Yields and rates are annualized
(1) Included as a component of Other Assets on the balance sheet


 

Synovus

LOANS OUTSTANDING AND NON-PERFORMING LOANS COMPOSITION

(Unaudited)

(dollars in thousands)

 

     September 30, 2010  
           Loans as a %     Total      Non-performing Loans  
           of Total Loans     Non-performing      as a % of Total  

Loan Type

   Total Loans     Outstanding     Loans      Non-performing Loans  

Multi-Family

   $ 884,910        3.9   $ 11,177         0.9

Hotels

     970,849        4.3        92,309         7.1   

Office Buildings

     874,580        3.9        18,122         1.4   

Shopping Centers

     1,158,052        5.1        63,134         4.9   

Commercial Development

     419,953        1.9        54,421         4.2   

Warehouses

     531,570        2.4        7,076         0.5   

Other Investment Property

     526,652        2.3        25,773         2.0   
                                 

Total Investment Properties

     5,366,566        23.8        272,012         20.9   
                                 

1-4 Family Construction

     416,781        1.8        99,114         7.7   

1-4 Family Perm / Mini-perm

     1,154,279        5.1        72,131         5.6   

Residential Development

     861,957        3.8        281,126         21.7   
                                 

Total 1-4 Family Properties

     2,433,017        10.8        452,371         35.0   
                                 

Land Acquisition

     1,381,603        6.1        229,872         17.8   
                                 

Total Commercial Real Estate

     9,181,186        40.7        954,255         73.6   
                                 

Commercial, Financial, and Agricultural

     5,263,677        23.3        187,022         14.5   

Owner-occupied

     4,127,775        18.3        79,111         6.2   
                                 

Total Commercial & Industrial

     9,391,452        41.6        266,133         20.7   

Home Equity

     1,672,021        7.4        18,567         1.4   

Consumer Mortgages

     1,516,687        6.7        48,800         3.8   

Credit Card

     280,898        1.2        —           —     

Other Retail Loans

     551,941        2.4        6,276         0.5   
                                 

Total Retail

     4,021,547        17.8        73,643         5.7   

Unearned Income

     (13,149     (0.1     —           —     
                                 

Total

   $ 22,581,036        100.0   $ 1,294,031         100.0
                                 

LOANS OUTSTANDING BY TYPE COMPARISON

(Unaudited)

(dollars in thousands)

 

     Total Loans      3Q10 vs. 4Q09            3Q10 vs. 3Q09  

Loan Type

   September 30, 2010      December 31, 2009      % change (1)     September 30, 2009      % change  

Multi-family

   $ 884,910         949,049         (9.0 )%    $ 875,909         1.0

Hotels

     970,849         1,094,517         (15.1     1,090,182         (10.9

Office Buildings

     874,580         964,214         (12.4     1,070,297         (18.3

Shopping Centers

     1,158,052         1,212,462         (6.0     1,144,919         1.1   

Commercial Development

     419,953         528,911         (27.5     632,993         (33.7

Warehouses

     531,570         566,290         (8.2     565,422         (6.0

Other Investment Property

     526,652         581,732         (12.7     670,691         (21.5
                                           

Total Investment Properties

     5,366,566         5,897,175         (12.0     6,050,413         (11.3
                                           

1-4 Family Construction

     416,781         715,171         (55.8     981,104         (57.5

1-4 Family Perm / Mini-perm

     1,154,279         1,272,763         (12.4     1,340,883         (13.9

Residential Development

     861,957         1,328,317         (46.9     1,497,419         (42.4
                                           

Total 1-4 Family Properties

     2,433,017         3,316,251         (35.6     3,819,406         (36.3
                                           

Land Acquisition

     1,381,603         1,529,415         (12.9     1,587,828         (13.0
                                           

 

Total Commercial Real Estate

     9,181,186        10,742,841        (19.4     11,457,647        (19.9
                                        

Commercial, Financial, and Agricultural

     5,263,677        6,003,735        (16.5     6,202,199        (15.1

Owner-Occupied

     4,127,775        4,443,611        (9.5     4,429,142        (6.8
                                        

Total Commercial & Industrial

     9,391,452        10,447,346        (13.5     10,631,341        (11.7

Home Equity

     1,672,021        1,714,994        (3.4     1,729,458        (3.3

Consumer Mortgages

     1,516,687        1,637,978        (9.9     1,667,593        (9.0

Credit Card

     280,898        294,126        (6.0     288,147        (2.5

Other Retail Loans

     551,941        565,131        (3.1     579,796        (4.8
                                        

Total Retail

     4,021,547        4,212,229        (6.1     4,264,994        (5.7

Unearned Income

     (13,149     (19,348     (42.8     (22,243     (40.9
                                        

Total

   $ 22,581,036        25,383,068        (14.8 )%    $ 26,331,739        (14.2 )% 
                                        

 

(1) Percentage change is annualized


 

Synovus

CREDIT QUALITY DATA

(Unaudited)

(dollars in thousands)

 

      2010      2009      3rd Quarter  
     Third
Quarter
    Second
Quarter
     First
Quarter
     Fourth
Quarter
     Third
Quarter
     ‘10 vs. ‘09
Change
 

Non-performing Loans

   $ 1,294,031        1,309,944         1,542,704         1,555,776         1,519,049         (14.8 )% 

Other Loans Held for Sale (1)

     50,302        50,208         78,077         36,816         40,932         22.9   

Other Real Estate

     211,869        212,362         222,155         238,807         187,494         13.0   

Non-performing Assets

     1,556,202        1,572,514         1,842,937         1,831,399         1,747,475         (10.9

Allowance for Loan Losses

     836,355        834,522         968,697         943,725         918,468         (8.9

Net Charge-offs - Quarter

     237,195        433,079         315,976         361,857         496,777         (52.3

Net Charge-offs - YTD

     986,249        749,055         315,976         1,460,172         1,098,315         (10.2

Net Charge-offs / Average Loans - Quarter (2)

     4.12 %      7.21         5.05         5.58         7.33      

Net Charge-offs / Average Loans - YTD (2)

     5.47        6.11         5.05         5.37         5.30      

Non-performing Loans / Loans

     5.73        5.61         6.32         6.13         5.77      

Non-performing Assets / Loans, Other Loans Held for Sale & ORE

     6.81        6.66         7.46         7.14         6.58      

Allowance / Loans

     3.70        3.58         3.97         3.72         3.49      

Allowance / Non-performing Loans

     64.63        63.71         62.79         60.66         60.46      

Past Due Loans over 90 days and Still Accruing

   $ 25,028        21,430         35,491         19,938         43,816         (42.9 )% 

As a Percentage of Loans Outstanding

     0.11 %      0.09         0.15         0.08         0.17      

Total Past Dues Loans and Still Accruing

   $ 253,748        246,635         294,753         262,446         356,456         (28.8

As a Percentage of Loans Outstanding

     1.12 %      1.06         1.21         1.03         1.35      

Restructured loans (accruing)

   $ 409,768        350,145         261,157         213,552         192,559         112.8   

 

(1) Represents impaired loans that are intended to be sold. Held for sale loans are carried at the lower of cost or fair value
(2) Ratio is annualized

SELECTED CAPITAL INFORMATION (1)

(Unaudited)

(dollars in thousands)

 

     September 30, 2010     December 31, 2009      September 30, 2009  

Tier 1 Capital

   $ 3,092,655        2,721,287         2,974,066   

Total Risk-based Capital

     3,954,063        3,637,712         3,927,752   

Tier 1 Capital Ratio

     13.06 %      10.16         10.48   

Tier 1 Common Equity Ratio

     9.07 %      6.66         7.18   

Total Risk-based Capital Ratio

     16.70        13.58         13.84   

Leverage Ratio

     9.75        8.12         8.76   

Common Equity as a Percentage of Total Assets (2)

     7.37        5.86         6.39   

Tangible Common Equity as a Percentage of Tangible Assets (3)

     7.26        5.74         6.23   

Tangible Common Equity as a Percentage of Risk-weighted Assets (3)

     9.47        7.03         7.59   

Book Value Per Common Share (4) (5)

     2.57        3.93         4.60   

Tangible Book Value Per Common Share (3) (5)

     2.53        3.84         4.48   

 

(1) Current quarter regulatory capital information is preliminary
(2) Common equity consists of Total Shareholders’ Equity less Cumulative Perpetual Perferred Stock
(3) Excludes the carrying value of goodwill and other intangible assets from common equity and total assets
(4) Book Value Per Common Share consists of Total Shareholders’ Equity less Cumulative Perpetual Preferred Stock divided by total common shares outstanding
(5) Equity and common shares exclude impact of unexercised tangible equity units (tMEDS)