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)

(Dollars in thousands, except per share data)

 

     Six Months Ended
June 30,
 
     2011     2010     Change  

Interest income

   $ 586,484        680,534        (13.8 )% 

Interest expense

     118,089        181,629        (35.0
                        

Net interest income

     468,395        498,905        (6.1

Provision for losses on loans

     261,905        639,851        (59.1
                        

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

     206,490        (140,946     246.5   
                        

Non-interest income:

      

Service charges on deposit accounts

     39,556        54,155        (27.0

Fiduciary and asset management fees

     23,416        22,695        3.2   

Brokerage revenue

     12,511        12,699        (1.5

Mortgage revenue

     8,042        12,132        (33.7

Bankcard fees

     22,782        19,315        17.9   

Investment securities gains (losses), net

     1,797        (431     nm   

Other fee income

     10,220        10,932        (6.5

(Decrease) increase in fair value of private equity investments, net

     (169     2,181        (107.7

Other non-interest income

     13,858        10,013        38.4   
                        

Total non-interest income

     132,013        143,691        (8.1
                        

Non-interest expense:

      

Salaries and other personnel expense

     184,849        207,951        (11.1

Net occupancy and equipment expense

     58,717        60,565        (3.1

FDIC insurance and other regulatory fees

     30,362        36,615        (17.1

Foreclosed real estate expense

     64,609        91,948        (29.7

(Gains) losses on other loans held for sale, net

     (1,746     73        nm   

Professional fees

     20,129        20,976        (4.0

Data processing expense

     18,201        22,007        (17.3

Restructuring charges

     27,439        —          nm   

Loss (gain) on curtailment of post-retirement defined benefit plan

     398        —          nm   

Other operating expenses

     59,173        71,424        (17.2
                        

Total non-interest expense

     462,131        511,559        (9.7
                        

Loss from continuing operations before income taxes

     (123,628     (508,814     75.7   

Income tax benefit

     (5,220     (21,395     (75.6
                        

Loss from continuing operations

     (118,408     (487,419     75.7   

Income from discontinued operations, net of income taxes

     —          43,162        (100.0
                        

Net loss

     (118,408     (444,257     73.3   

Net loss attributable to non-controlling interest

     (220     (590     62.7   
                        

Net loss attributable to controlling interest

     (118,188     (443,667     73.4   
                        

Dividends and accretion of discount on preferred stock

     28,970        28,685        1.0   
                        

Net loss attributable to common shareholders

   $ (147,158     (472,352     68.8   
                        

Basic EPS

      

Net loss from continuing operations attributable to common shareholders

   $ (0.19     (0.88     78.8

Net loss attributable to common shareholders

     (0.19     (0.81     76.8   

Diluted EPS

      

Net loss from continuing operations attributable to common shareholders

     (0.19     (0.88     78.8   

Net loss attributable to common shareholders

     (0.19     (0.81     76.8   

Cash dividends declared per common share

     0.02        0.02        —     

Return on average assets *

     (0.82 )%      (3.02     220  bp 

Return on average common equity *

     (15.55     (50.63     nm   

Average common shares outstanding - basic

     785,260        583,697        34.5

Average common shares outstanding - diluted

     785,260        583,697        34.5   

nm - not meaningful

* - ratios are annualized


Synovus

INCOME STATEMENT DATA

(Unaudited)

(Dollars in thousands, except per share data)

 

      2011     2010     2nd Quarter  
     Second
Quarter
    First
Quarter
    Fourth
Quarter
    Third
Quarter
    Second
Quarter
    ‘11 vs. ‘10
Change
 

Interest income

   $ 288,052        298,432        313,557        326,490        337,739        (14.7 )% 

Interest expense

     57,091        60,998        71,590        81,030        87,700        (34.9
                                                

Net interest income

     230,961        237,434        241,967        245,460        250,039        (7.6

Provision for losses on loans

     120,159        141,746        252,401        239,020        298,904        (59.8
                                                

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

     110,802        95,688        (10,434     6,440        (48,865     326.8   
                                                

Non-interest income:

            

Service charges on deposit accounts

     19,238        20,318        24,248        26,711        27,876        (31.0

Fiduciary and asset management fees

     11,879        11,537        11,039        10,408        11,357        4.6   

Brokerage revenue

     6,291        6,220        8,750        6,736        6,768        (7.0

Mortgage revenue

     5,547        2,495        11,039        10,163        6,318        (12.2

Bankcard fees

     12,125        10,657        11,431        10,674        9,800        23.7   

Investment securities gains (losses), net

     377        1,420        (228     (612     17        nm   

Other fee income

     5,289        4,931        4,757        5,440        5,402        (2.1

(Decrease) increase in fair value of private equity investments, net

     (301     132        1,500        3,521        1,283        (123.5

Other non-interest income

     7,404        6,454        7,354        8,723        5,174        43.1   
                                                

Total non-interest income

     67,849        64,164        79,890        81,764        73,995        (8.3
                                                

Non-interest expense:

            

Salaries and other personnel expense

     91,749        93,100        104,744        105,933        103,929        (11.7

Net occupancy and equipment expense

     28,883        29,834        30,169        31,311        30,588        (5.6

FDIC insurance and other regulatory fees

     15,956        14,406        16,686        16,178        18,970        (15.9

Foreclosed real estate expense

     39,872        24,737        20,793        50,890        46,440        (14.1

Losses (gains) on other loans held for sale, net

     480        (2,226     2,976        —          12        nm   

Professional fees

     10,893        9,236        12,154        12,424        11,595        (6.1

Data processing expense

     9,251        8,950        12,355        11,117        11,323        (18.3

Restructuring charges

     3,106        24,333        2,118        3,420        —          nm   

Loss (gain) on curtailment of post-retirement defined benefit plan

     —          398        (7,092     —          —          nm   

Other operating expenses

     22,225        36,948        34,103        37,738        35,905        (38.1
                                                

Total non-interest expense

     222,415        239,716        229,006        269,011        258,762        (14.0
                                                

Loss from continuing operations before income taxes

     (43,764     (79,864     (159,550     (180,807     (233,632     81.3   

Income tax (benefit) expense

     (4,764     (456     5,884        360        (5,057     (5.8
                                                

Loss from continuing operations

     (39,000     (79,408     (165,434     (181,167     (228,575     82.9   

Income from discontinued operations, net of income taxes

     —          —          —          —          —          nm   
                                                

Net loss

     (39,000     (79,408     (165,434     (181,167     (228,575     82.9   

Net (loss) income attributable to non-controlling interest

     —          (220     134        277        (381     100.0   
                                                

Net loss attributable to controlling interest

     (39,000     (79,188     (165,568     (181,444     (228,194     82.9   
                                                

Dividends and accretion of discount on preferred stock

     14,504        14,466        14,430        14,394        14,360        1.0   
                                                

Net loss attributable to common shareholders

   $ (53,504     (93,654     (179,998     (195,838     (242,554     77.9   
                                                

Basic EPS

            

Net loss from continuing operations attributable to common shareholders

   $ (0.07     (0.12     (0.23     (0.25     (0.36     81.0

Net loss attributable to common shareholders

     (0.07     (0.12     (0.23     (0.25     (0.36     81.0   

Diluted EPS

            

Net loss from continuing operations attributable to common shareholders

     (0.07     (0.12     (0.23     (0.25     (0.36     81.0   

Net loss attributable to common shareholders

     (0.07     (0.12     (0.23     (0.25     (0.36     81.0   

Cash dividends declared per common share

     0.01        0.01        0.01        0.01        0.01        —     

Return on average assets *

     (0.55 )%      (1.09 )%      (2.12 )%      (2.27 )%      (2.81     226  bp 

Return on average common equity *

     (11.24     (19.55     (31.80     (31.80     (43.59     nm   

Average common shares outstanding - basic

     785,277        785,243        785,122        784,916        676,753        16.0

Average common shares outstanding - diluted

     785,277        785,243        785,122        784,916        676,753        16.0   

nm - not meaningful

* - ratios are annualized

 


Synovus

BALANCE SHEET DATA

(Unaudited)

(In thousands, except share data)

 

      June 30, 2011     December 31, 2010     June 30, 2010  

ASSETS

      

Cash and due from banks

   $ 409,302        389,021        589,158   

Interest bearing funds with Federal Reserve Bank

     2,845,277        3,103,896        3,657,548   

Interest earning deposits with banks

     24,133        16,446        10,608   

Federal funds sold and securities purchased under resale agreements

     127,580        160,502        159,993   

Trading account assets, at fair value

     16,130        22,294        20,009   

Mortgage loans held for sale, at fair value

     78,752        232,839        144,705   

Other loans held for sale

     89,139        127,365        50,208   

Investment securities available for sale, at fair value

     3,259,254        3,440,268        3,328,426   

Loans, net of unearned income

     20,504,810        21,585,763        23,342,945   

Allowance for loan losses

     (631,401     (703,547     (834,522
                        

Loans, net

     19,873,409        20,882,216        22,508,423   
                        

Premises and equipment, net

     493,638        544,971        565,981   

Goodwill

     24,431        24,431        24,431   

Other intangible assets, net

     10,449        12,434        14,505   

Other assets

     1,062,416        1,136,465        1,308,345   
                        

Total assets

   $ 28,313,910        30,093,148        32,382,340   
                        

LIABILITIES AND EQUITY

      

Liabilities:

      

Deposits:

      

Non-interest bearing deposits

   $ 4,877,267        4,298,372        4,250,514   

Interest bearing deposits

     17,997,750        20,201,932        22,007,049   
                        

Total deposits

     22,875,017        24,500,304        26,257,563   

Federal funds purchased and other short-term borrowings

     452,466        499,226        476,598   

Long-term debt

     1,894,901        1,808,161        1,876,571   

Other liabilities

     240,588        260,910        325,374   
                        

Total liabilities

     25,462,972        27,068,601        28,936,106   
                        

Equity:

      

Shareholders’ equity:

      

Cumulative perpetual preferred stock, no par value (1)

     942,096        937,323        932,695   

Common stock, par value $1.00 (2)

     790,973        790,956        790,749   

Additional paid-in capital

     2,353,854        2,351,508        2,346,901   

Treasury stock, at cost (3)

     (114,176     (114,176     (114,174

Accumulated other comprehensive income

     65,905        57,158        101,073   

Accumulated deficit

     (1,187,714     (1,024,851     (633,312
                        

Total shareholders’ equity

     2,850,938        2,997,918        3,423,932   

Non-controlling interest in subsidiaries

     —          26,629        22,302   
                        

Total equity

     2,850,938        3,024,547        3,446,234   
                        

Total liabilities and equity

   $ 28,313,910        30,093,148        32,382,340   
                        

 

(1) Preferred shares outstanding: 967,870, at all periods presented
(2) Common shares outstanding: 785,279,194; 785,262,837; and 785,056,302 at June 30, 2011 December 31, 2010, and June 30, 2010, respectively.
(3) Treasury shares: 5,693,452; 5,693,452; and 5,692,422 at June 30, 2011, December 31, 2010, and June 30, 2010, respectively.


Synovus

AVERAGE BALANCES AND YIELDS/RATES (1)

(Unaudited)

(Dollars in thousands)

 

     2011     2010  
     Second
Quarter
    First
Quarter
    Fourth
Quarter
    Third
Quarter
    Second
Quarter
 

Interest Earning Assets

                              

Taxable investment securities (2)

   $ 3,172,818        3,264,581        3,104,004        3,055,400        3,068,634   

Yield

     3.46     3.56        3.76        4.08        4.40   

Tax-exempt investment securities (2)

   $ 31,264        44,228        51,400        62,659        66,125   

Yield (taxable equivalent)

     6.73     6.84        7.16        6.82        6.85   

Trading account assets

   $ 16,881        20,281        16,037        14,970        16,763   

Yield

     5.27     5.13        5.86        4.88        5.47   

Commercial loans (3)

   $ 16,983,912        17,555,733        18,315,882        19,041,500        19,982,523   

Yield

     4.92     4.98        4.90        4.92        4.92   

Consumer loans (3)

   $ 3,879,042        3,914,222        3,988,849        4,048,929        4,100,458   

Yield

     5.10     5.25        5.22        5.25        5.33   

Allowance for loan losses

   $ (678,851     (698,609     (819,176     (862,970     (964,212
                                        

Loans, net (3)

   $ 20,184,103        20,771,346        21,485,555        22,227,459        23,118,769   

Yield

     5.14     5.21        5.16        5.19        5.21   

Mortgage loans held for sale

   $ 79,340        152,981        260,759        194,487        131,700   

Yield

     6.16     4.74        4.60        5.16        5.54   

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

   $ 2,929,515        3,033,284        3,628,939        3,720,649        3,591,353   

Yield

     0.25     0.25        0.25        0.25        0.25   

Federal Home Loan Bank and Federal Reserve Bank stock (4)

   $ 104,727        111,096        113,341        122,356        140,209   

Yield

     0.87     0.90        0.59        0.87        0.82   
                                        

Total interest earning assets

   $ 26,518,648        27,397,797        28,660,035        29,397,980        30,133,553   

Yield

     4.37     4.42        4.36        4.42        4.51   
                                        

Interest Bearing Liabilities

                              

Interest bearing demand deposits

   $ 3,379,243        3,526,730        3,864,106        3,601,825        3,617,669   

Rate

     0.32     0.33        0.33        0.36        0.42   

Money market accounts

   $ 6,306,399        6,550,623        6,874,367        6,788,768        6,606,161   

Rate

     0.77     0.76        0.84        0.98        1.07   

Savings deposits

   $ 520,518        493,504        484,460        488,221        495,901   

Rate

     0.14     0.14        0.14        0.14        0.15   

Time deposits under $100,000

   $ 2,124,525        2,212,215        2,383,411        2,511,830        2,626,852   

Rate

     1.38     1.53        1.74        1.88        2.00   

Time deposits over $100,000

   $ 2,978,929        3,291,202        3,859,235        4,217,972        4,561,517   

Rate

     1.57     1.65        1.77        1.88        1.95   

National market brokered money market accounts

   $ 390,048        393,981        423,428        537,952        833,811   

Rate

     0.47     0.51        0.54        0.80        0.83   

National market brokered time deposits

   $ 2,471,620        2,665,314        2,956,904        3,261,113        3,681,660   

Rate

     1.87     1.83        1.82        1.89        1.90   
                                        

Total interest bearing deposits

   $ 18,171,282        19,133,569        20,845,911        21,407,681        22,423,571   

Rate

     1.01     1.05        1.14        1.28        1.36   

Federal funds purchased and other short-term liabilities

   $ 449,815        412,008        442,183        514,295        493,602   

Rate

     0.26     0.29        0.33        0.36        0.44   

Long-term debt

   $ 1,901,130        1,891,576        1,729,991        1,811,153        1,882,358   

Rate

     2.30     2.39        2.64        2.57        2.36   
                                        

Total interest bearing liabilities

   $ 20,522,227        21,437,153        23,018,085        23,733,129        24,799,531   

Rate

     1.11     1.15        1.23        1.36        1.42   
                                        

Non-interest bearing demand deposits

   $ 4,911,044        4,821,237        4,433,849        4,310,459        4,271,444   
                                        

Net interest margin

     3.51     3.52        3.37        3.33        3.34   
                                        

Tax equivalent adjustment

   $ 893        964        968        1,087        1,056   

 

(1) Yields and rates are annualized and include tax equivalent adjustment.
(2) Excludes net unrealized gains and (losses).
(3) Average loans are shown net of unearned income. Non-performing loans are included.
(4) Included as a component of Other Assets on the balance sheet


Synovus

LOANS OUTSTANDING AND NON-PERFORMING LOANS COMPOSITION

(Unaudited)

(Dollars in thousands)

 

     June 30, 2011  

Loan Type

   Total Loans     Loans as a %
of Total Loans
Outstanding
    Total
Non-performing
Loans
     Non-performing Loans
as a % of Total
Nonperforming Loans
 

Multi-Family

   $ 817,501        4.0   $ 9,631         1.2

Hotels

     812,485        4.0        10,265         1.2   

Office Buildings

     798,033        3.9        18,556         2.1   

Shopping Centers

     1,035,068        5.0        19,489         2.2   

Commercial Development

     315,729        1.5        34,065         3.8   

Warehouses

     521,631        2.5        6,787         0.8   

Other Investment Property

     464,666        2.3        11,898         1.3   
                                 

Total Investment Properties

     4,765,113        23.2        110,691         12.6   
                                 

1-4 Family Construction

     250,226        1.2        29,512         3.3   

1-4 Family Investment Mortgage

     1,068,338        5.2        70,889         8.0   

Residential Development

     532,479        2.6        151,683         17.1   
                                 

Total 1-4 Family Properties

     1,851,043        9.0        252,084         28.4   
                                 

Land Acquisition

     1,179,196        5.8        218,033         24.6   
                                 

Total Commercial Real Estate

     7,795,352        38.0        580,808         65.6   
                                 

Commercial , Financial, and Agricultural

     4,958,300        24.2        140,398         15.9   

Owner-Occupied Real Estate

     3,888,292        19.0        85,231         9.6   
                                 

Total Commercial & Industrial

     8,846,592        43.2        225,629         25.5   

Home Equity Lines

     1,612,279        7.9        25,203         2.8   

Consumer Mortgages

     1,450,830        7.1        47,542         5.4   

Credit Cards

     271,641        1.3        —           —     

Other Retail Loans

     536,903        2.5        6,054         0.7   
                                 

Total Retail

     3,871,653        18.8        78,799         8.9   

Unearned Income

     (8,787     nm        —           —     
                                 

Total

   $ 20,504,810        100.0   $ 885,236         100.0
                                 

LOANS OUTSTANDING BY TYPE COMPARISON

(Unaudited)

(Dollars in thousands)

 

     Total Loans     2Q11 vs. 4Q10           2Q11 vs. 2Q10  

Loan Type

   June 30, 2011     December 31, 2010     % change (1)     June 30, 2010     % change  

Multi-Family

   $ 817,501        867,328        (11.6 )%    $ 894,450        (8.6 )% 

Hotels

     812,485        865,974        (12.5     983,848        (17.4

Office Buildings

     798,033        842,657        (10.7     890,804        (10.4

Shopping Centers

     1,035,068        1,078,122        (8.1     1,183,763        (12.6

Commercial Development

     315,729        381,107        (34.6     462,623        (31.8

Warehouses

     521,631        528,297        (2.5     535,676        (2.6

Other Investment Property

     464,666        495,617        (12.6     526,732        (11.8
                                        

Total Investment Properties

     4,765,113        5,059,102        (11.7     5,477,896        (13.0
                                        

1-4 Family Construction

     250,226        332,047        (49.7     460,406        (45.7

1-4 Family Investment Mortgage

     1,068,338        1,127,566        (10.6     1,191,790        (10.4

Residential Development

     532,479        643,174        (34.7     999,792        (46.7
                                        

Total 1-4 Family Properties

     1,851,043        2,102,787        (24.1     2,651,988        (30.2
                                        

Land Acquisition

     1,179,196        1,218,690        (6.5     1,461,158        (19.3
                                        

Total Commercial Real Estate

     7,795,352        8,380,579        (14.1     9,591,042        (18.7
                                        

Commercial , Financial, and Agricultural

     4,958,300        5,267,861        (11.9     5,470,506        (9.4

Owner-Occupied Real Estate

     3,888,292        3,996,950        (5.5     4,234,238        (8.2
                                        

Total Commercial & Industrial

     8,846,592        9,264,811        (9.1     9,704,744        (8.8

Home Equity Lines

     1,612,279        1,648,039        (4.4     1,680,658        (4.1

Consumer Mortgages

     1,450,830        1,475,261        (3.3     1,546,977        (6.2

Credit Cards

     271,641        284,971        (9.4     285,749        (4.9

Other Retail Loans

     536,903        542,538        (2.1     548,980        (2.2
                                        

Total Retail

     3,871,653        3,950,809        (4.0     4,062,364        (4.7

Unearned Income

     (8,787     (10,436     (31.9     (15,205     (42.2
                                        

Total

   $ 20,504,810        21,585,763        (10.1 )%    $ 23,342,945        (12.2 )% 
                                        

 

(1) Percentage change is annualized.


Synovus

CREDIT QUALITY DATA

(Unaudited)

(Dollars in thousands)

 

      2011      2010      2nd Quarter  
     Second
Quarter
    First
Quarter
     Fourth
Quarter
     Third
Quarter
     Second
Quarter
     ‘11 vs. ‘10
Change
 

Non-performing Loans

   $ 885,236        895,726         891,622         1,294,031         1,309,944         (32.4 )% 

Other Loans Held for Sale (1)

     89,139        110,436         127,365         50,302         50,208         77.5   

Other Real Estate

     244,313        269,314         261,305         211,869         212,362         15.0   

Non-performing Assets

     1,218,688        1,275,476         1,280,292         1,556,202         1,572,514         (22.5

Allowance for Loan Losses

     631,401        678,426         703,547         836,355         834,522         (24.3

Net Charge-Offs - Quarter

     167,185        166,866         385,203         237,195         433,079         (61.4

Net Charge-Offs - YTD

     334,050        166,866         1,371,452         986,249         749,055         (55.4

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

     3.22     3.12         6.93         4.12         7.21      

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

     3.17        3.12         5.82         5.47         6.11      

Non-performing Loans / Loans

     4.32        4.27         4.13         5.73         5.61      

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

     5.85        5.97         5.83         6.81         6.66      

Allowance / Loans

     3.08        3.23         3.26         3.70         3.58      

Allowance / Non-performing Loans

     71.33        75.74         78.91         64.63         63.71      

Allowance / Non-performing Loans (3)

     161.55        176.08         192.60         177.98         191.11      

Past Due Loans over 90 days and Still Accruing

   $ 23,235        10,490         16,222         25,028         21,430         8.4

As a Percentage of Loans Outstanding

     0.11     0.05         0.08         0.11         0.09      

Total Past Dues Loans and Still Accruing

   $ 199,804        201,754         176,756         253,748         246,635         (19.0

As a Percentage of Loans Outstanding

     0.97     0.96         0.82         1.12         1.06      

Restructured loans (accruing)

   $ 551,603        545,416         464,123         409,768         350,145         57.5   

 

(1) Represent impaired loans that are intended to be sold. Held for sale loans are carried at the lower of cost or fair value, less costs to sell.
(2) Ratio is annualized.
(3) Excludes non-performing loans for which the expected loss has been charged off.

SELECTED CAPITAL INFORMATION (1)

(Unaudited)

(Dollars in thousands)

 

     June 30, 2011     December 31, 2010      June 30, 2010  

Tier 1 Capital

   $ 2,758,280        2,909,912         3,285,907   

Total Risk-Based Capital

     3,522,660        3,742,599         4,160,867   

Tier 1 Capital Ratio

     12.84     12.79         13.36   

Tier 1 Common Equity Ratio

     8.41        8.63         9.52   

Total Risk-Based Capital Ratio

     16.40        16.45         16.91   

Leverage Ratio

     9.70        9.44         10.12   

Common Equity as a Percentage of Total Assets (2)

     6.74        6.85         7.69   

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

     6.63        6.73         7.58   

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

     8.73        8.90         9.97   

Book Value Per Common Share (4) (5)

     2.10        2.29         3.17   

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

     2.06        2.25         2.70   

 

(1) Current quarter regulatory capital information is preliminary.
(2) Common equity consists of Total Shareholders’ Equity less Cumulative Perpetual Preferred 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).