EX-99.2

EX-99.2 3 d423864dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

Synovus

INCOME STATEMENT DATA

(Unaudited)


	Nine Months Ended September 30,
(Dollars in thousands, except per share data)	2012			2011			Change
Interest income	$	764,140			868,453			(12.0	)%
Interest expense		117,479			171,455			(31.5	)

Net interest income		646,661			696,998			(7.2	)
Provision for loan losses		173,843			364,230			(52.3	)

Net interest income after provision for loan losses		472,818			332,768			42.1

Non-interest income:
Service charges on deposit accounts		57,319			59,595			(3.8	)
Fiduciary and asset management fees		31,966			35,046			(8.8	)
Brokerage revenue		19,786			19,067			3.8
Mortgage banking income		23,247			15,469			50.3
Bankcard fees		23,938			34,344			(30.3	)
Investment securities gains, net		30,909			64,670			(52.2	)
Other fee income		14,927			15,643			(4.6	)
Increase (decrease) in fair value of private equity investments, net		6,428			(941	)		nm
Other non-interest income		25,329			22,512			12.5

Total non-interest income		233,849			265,405			(11.9	)

Non-interest expense:
Salaries and other personnel expense		280,972			278,431			0.9
Net occupancy and equipment expense		79,512			86,698			(8.3	)
FDIC insurance and other regulatory fees		37,171			45,826			(18.9	)
Foreclosed real estate expense, net		55,677			101,716			(45.3	)
Losses (gains) on other loans held for sale, net		4,005			(2,591	)		nm
Professional fees		29,270			30,264			(3.3	)
Data processing expense		25,020			27,225			(8.1	)
Visa indemnification charges		5,546			96			nm
Restructuring charges		3,444			30,026			(88.5	)
Other operating expenses		82,273			86,992			(5.4	)

Total non-interest expense		602,890			684,683			(11.9	)

Income (loss) before income taxes		103,777			(86,510	)		nm
Income tax (benefit) expense		(2,393	)		1,690			nm

Net income (loss)		106,170			(88,200	)		nm
Net loss attributable to non-controlling interest		—			(220	)		nm

Net income (loss) available to controlling interest		106,170			(87,980	)		nm

Dividends and accretion of discount on preferred stock		43,968			43,510			1.1

Net income (loss) available to common shareholders	$	62,202			(131,490	)		nm

Basic EPS
Net income (loss) available to common shareholders		0.08			(0.17	)		nm
Diluted EPS
Net income (loss) available to common shareholders		0.07			(0.17	)		nm
Cash dividends declared per common share		0.03			0.03			—
Return on average assets		0.53	%		(0.41	)		nm
Return on average common equity		4.33			(8.85	)		nm
Average common shares outstanding - basic		786,429			785,267			0.1	%
Average common shares outstanding - diluted		909,717			785,267			nm

nm	- not meaningful

Synovus

INCOME STATEMENT DATA

(Unaudited)


	2012						2011									3rd Quarter
(Dollars in thousands, except per share data)	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter			‘12 vs. ‘11 Change
Interest income	$	247,676			253,809			262,654			273,303			281,970			(12.2	)%
Interest expense		35,331			40,453			41,695			46,147			53,367			(33.8	)

Net interest income		212,345			213,356			220,959			227,156			228,603			(7.1	)
Provision for loan losses		63,572			44,222			66,049			54,565			102,325			(37.9	)

Net interest income after provision for loan losses		148,773			169,134			154,910			172,591			126,278			17.8

Non-interest income:
Service charges on deposit accounts		20,404			18,684			18,231			19,175			20,039			1.8
Fiduciary and asset management fees		10,340			10,792			10,835			10,763			11,631			(11.1	)
Brokerage revenue		6,844			6,295			6,647			6,939			6,556			4.4
Mortgage banking income		9,261			7,983			6,003			4,847			7,427			24.7
Bankcard fees		7,866			8,493			7,579			7,150			11,562			(32.0	)
Investment securities gains, net		6,656			4,170			20,083			10,337			62,873			(89.4	)
Other fee income		5,276			4,951			4,700			4,310			5,423			(2.7	)
(Decrease) increase in fair value of private equity investments, net		(944	)		7,279			93			(177	)		(771	)		(22.4	)
Other non-interest income		7,530			7,830			9,968			10,126			8,652			(13.0	)

Total non-interest income		73,233			76,477			84,139			73,470			133,392			(45.1	)

Non-interest expense:
Salaries and other personnel expense		93,177			95,173			92,622			93,115			93,184			(0.0	)
Net occupancy and equipment expense		26,647			26,159			26,706			27,338			27,981			(4.8	)
FDIC insurance and other regulatory fees		9,205			13,302			14,663			13,238			15,463			(40.5	)
Foreclosed real estate expense, net		11,997			20,708			22,972			31,853			37,108			(67.7	)
Losses (gains) on other loans held for sale, net		4,104			(1,058	)		959			(145	)		(846	)		nm
Professional fees		10,074			9,929			9,267			10,321			10,135			(0.6	)
Data processing expense		8,284			8,712			8,024			8,532			9,024			(8.2	)
Visa indemnification charges		833			1,734			2,979			5,942			—			nm
Restructuring charges		1,192			1,393			858			639			2,587			(53.9	)
Other operating expenses		25,979			32,212			24,083			28,249			27,916			(6.9	)

Total non-interest expense		191,492			208,264			203,133			219,082			222,552			(14.0	)

Income before income taxes		30,514			37,347			35,916			26,979			37,118			(17.8	)
Income tax (benefit) expense		(211	)		(2,105	)		(77	)		(378	)		6,910			nm

Net income		30,725			39,452			35,993			27,357			30,208			1.7
Dividends and accretion of discount on preferred stock		14,695			14,649			14,624			14,578			14,541			1.1

Net income available to common shareholders	$	16,030			24,803			21,369			12,779			15,667			2.3

Basic EPS
Net income available to common shareholders		0.02			0.03			0.03			0.02			0.02			—
Diluted EPS
Net income available to common shareholders		0.02			0.03			0.02			0.01			0.02			—
Cash dividends declared per common share		0.01			0.01			0.01			0.01			0.01			—
Return on average assets *		0.47	%		0.59	%		0.53	%		0.39			0.42			11.9
Return on average common equity *		3.30			5.23			4.49			2.66			3.20			3.1
Average common shares outstanding - basic		786,576			786,576			786,135			785,289			785,280			0.2	%
Average common shares outstanding - diluted		910,396			909,761			908,986			911,253			911,247			(0.1	)

nm	- not meaningful

*	- ratios are annualized

Synovus

BALANCE SHEET DATA

(Unaudited)


	September 30, 2012			December 31, 2011			September 30, 2011
(In thousands, except share data)
ASSETS
Cash and cash equivalents	$	454,028			510,423			452,034
Interest bearing funds with Federal Reserve Bank		815,156			1,567,006			2,750,953
Interest earning deposits with banks		27,215			13,590			21,560
Federal funds sold and securities purchased under resale agreements		116,318			158,916			189,304
Trading account assets, at fair value		5,953			16,866			17,467
Mortgage loans held for sale, at fair value		246,224			161,509			125,379
Other loans held for sale		11,254			30,156			53,074
Investment securities available for sale, at fair value		3,229,440			3,690,125			3,596,511
Loans, net of deferred fees and costs		19,731,865			20,079,813			20,102,086
Allowance for loan losses		(420,404	)		(536,494	)		(595,383	)

Loans, net		19,311,461			19,543,319			19,506,703

Premises and equipment, net		475,222			486,923			488,074
Goodwill		24,431			24,431			24,431
Other intangible assets, net		5,895			8,525			9,482
Other real estate		189,182			204,232			239,255
Other assets		852,865			746,824			779,697

Total assets	$	25,764,644			27,162,845			28,253,924

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Non-interest bearing deposits	$	5,503,288			5,366,868			5,249,335
Interest bearing deposits, excluding brokered deposits		14,423,583			15,261,710			15,702,461
Brokered deposits		919,959			1,783,174			2,157,631

Total deposits		20,846,830			22,411,752			23,109,427
Federal funds purchased and securities sold under repurchase agreements		165,865			313,757			328,806
Long-term debt		1,654,183			1,364,727			1,522,334
Other liabilities		222,066			245,157			463,909

Total liabilities		22,888,944			24,335,393			25,424,476

Equity:
Shareholders’ equity:
Series A Preferred Stock, no par value (1)		954,690			947,017			944,538
Common stock, par value $1.00 (2)		792,269			790,989			790,974
Additional paid-in capital		2,202,903			2,241,171			2,254,068
Treasury stock, at cost (3)		(114,176	)		(114,176	)		(114,176	)
Accumulated other comprehensive income		16,156			21,093			32,189
Accumulated deficit		(976,142	)		(1,058,642	)		(1,078,145	)

Total shareholders’ equity		2,875,700			2,827,452			2,829,448
Total liabilities and shareholders’ equity	$	25,764,644			27,162,845			28,253,924

(1)	Preferred shares outstanding: 967,870, at all periods presented

(2)	Common shares outstanding: 786,575,516; 785,295,428; and 785,280,277 at September 30, 2012, December 31, 2011, and September 30, 2011, respectively.

(3)	Treasury shares: 5,693,452, at all periods presented

Synovus

AVERAGE BALANCES AND YIELDS/RATES (1)

(Unaudited)


	2012									2011
(Dollars in thousands)	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Interest Earning Assets
Taxable investment securities ⁽²⁾	$	3,495,838			3,539,376			3,577,026			3,647,459			3,152,589
Yield		1.67	%		2.11			2.35			2.59			3.28
Tax-exempt investment securities ^(2) (4)	$	19,503			21,408			23,559			25,566			27,903
Yield (taxable equivalent)		6.47	%		6.40			6.36			6.57			6.66
Trading account assets	$	12,343			13,647			14,975			19,107			14,601
Yield		8.27	%		6.93			7.47			4.87			5.76
Commercial loans ^(3) (4)	$	15,691,881			15,941,719			16,144,615			16,276,207			16,535,371
Yield		4.63	%		4.67			4.76			4.82			4.88
Consumer loans ⁽³⁾	$	3,940,000			3,896,941			3,866,084			3,871,393			3,869,698
Yield		4.80	%		4.87			4.95			4.95			5.06
Allowance for loan losses	$	(446,495	)		(498,419	)		(529,669	)		(587,956	)		(632,082	)

Loans, net ⁽³⁾	$	19,185,386			19,340,241			19,481,030			19,559,644			19,772,987
Yield		4.79	%		4.85			4.94			5.01			5.09
Mortgage loans held for sale	$	175,199			90,499			112,040			161,632			91,257
Yield		4.03	%		4.99			4.88			4.58			5.74
Federal funds sold, due from Federal Reserve Bank, and other short-term investments	$	1,215,743			1,668,814			1,830,295			2,221,728			3,075,470
Yield		0.24	%		0.24			0.24			0.24			0.24
Federal Home Loan Bank and Federal Reserve Bank stock ⁽⁵⁾	$	53,239			63,665			78,100			84,171			96,442
Yield		1.87	%		1.85			1.43			0.93			0.90

Total interest earning assets	$	24,157,251			24,737,650			25,117,025			25,719,307			26,231,249
Yield		4.09	%		4.14			4.22			4.23			4.28

Interest Bearing Liabilities
Interest bearing demand deposits	$	3,344,561			3,404,540			3,540,327			3,457,677			3,302,439
Rate		0.19	%		0.22			0.25			0.26			0.30
Money market accounts	$	6,751,607			6,769,037			6,755,769			6,697,334			6,636,751
Rate		0.33	%		0.42			0.49			0.57			0.73
Savings deposits	$	557,086			557,149			534,118			516,520			521,604
Rate		0.10	%		0.11			0.12			0.12			0.13
Time deposits under $100,000	$	1,763,864			1,868,348			1,967,084			2,062,171			2,131,453
Rate		0.85	%		0.97			1.08			1.17			1.27
Time deposits over $100,000	$	2,176,488			2,336,496			2,480,044			2,710,893			2,912,476
Rate		1.11	%		1.23			1.33			1.40			1.49
Brokered money market accounts	$	186,336			222,916			223,113			236,973			325,002
Rate		0.33	%		0.33			0.28			0.27			0.39
Brokered time deposits	$	820,908			1,036,521			1,346,868			1,689,538			2,053,811
Rate		1.83	%		1.94			1.89			1.87			1.88

Total interest bearing deposits	$	15,600,850			16,195,007			16,847,323			17,371,106			17,883,536
Rate		0.54	%		0.64			0.73			0.82			0.95
Federal funds purchased and other short-term liabilities	$	350,183			368,984			296,018			329,343			368,311
Rate		0.17	%		0.18			0.24			0.26			0.28
Long-term debt	$	1,372,741			1,326,239			1,386,324			1,443,825			1,693,673
Rate		4.09	%		4.34			3.19			2.78			2.45

Total interest bearing liabilities	$	17,323,774			17,890,230			18,529,665			19,144,274			19,945,520
Rate		0.81	%		0.91			0.90			0.96			1.06

Non-interest bearing demand deposits	$	5,560,827			5,606,352			5,397,964			5,413,322			5,175,521

Net interest margin		3.51	%		3.48			3.55			3.52			3.47

Taxable equivalent adjustment	$	761			780			798			844			880

(1)	Yields and rates are annualized.

(2)	Excludes net unrealized gains and (losses).

(3)	Average loans are shown net of unearned income. Non-performing loans are included.

(4)	Reflects taxable-equivalent adjustments, using the statutory federal income tax rate of 35%, in adjusting interest on tax-exempt loans and investment securities to a taxable-equivalent basis.

(5)	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, 2012
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	$	759,500			3.8	%	$	4,531		0.6	%
Hotels		689,196			3.5			13,278		1.9
Office Buildings		772,961			3.9			12,277		1.8
Shopping Centers		911,804			4.6			25,397		3.6
Commercial Development		279,585			1.4			46,682		6.7
Warehouses		508,770			2.6			3,348		0.5
Other Investment Property		469,081			2.4			8,795		1.3

Total Investment Properties		4,390,897			22.3			114,308		16.3

1-4 Family Construction		152,598			0.8			14,607		2.1
1-4 Family Investment Mortgage		906,744			4.6			45,103		6.4
Residential Development		367,908			1.9			74,289		10.6

Total 1-4 Family Properties		1,427,250			7.2			133,999		19.1

Land Acquisition		909,420			4.6			183,125		26.2

Total Commercial Real Estate		6,727,567			34.1			431,432		61.6

Commercial, Financial, and Agricultural		5,175,114			26.2			123,894		17.7
Owner-Occupied Real Estate		3,877,578			19.7			62,830		9.0

Total Commercial & Industrial		9,052,692			45.9			186,724		26.7
Home Equity Lines		1,572,986			8.0			21,220		3.0
Consumer Mortgages		1,399,432			7.1			52,313		7.5
Small Business		444,783			2.3			5,833		0.8
Credit Cards		257,922			1.3			—		—
Other Retail Loans		293,536			1.5			2,682		0.4

Total Retail		3,968,659			20.0			82,048		11.7
Unearned Income		(17,053	)		nm			—		nm

Total	$	19,731,865			100.0	%	$	700,204		100.0	%

LOANS OUTSTANDING BY TYPE COMPARISON

(Unaudited)


(Dollars in thousands)	Total Loans			3Q12 vs. 2Q12			3Q12 vs. 4Q11			3Q12 vs. 3Q11
Loan Type	September 30, 2012			% change (1)			% change (1)			% change
Multi-Family	$	759,500			(13.3	)%		(4.4	)		0.9
Hotels		689,196			(9.9	)		(17.3	)		(12.7	)
Office Buildings		772,961			3.5			(0.5	)		(2.3	)
Shopping Centers		911,804			(8.2	)		(9.2	)		(9.0	)
Commercial Development		279,585			(5.0	)		(3.4	)		(7.0	)
Warehouses		508,770			18.6			5.4			2.2
Other Investment Property		469,081			10.0			5.9			1.3

Total Investment Properties		4,390,897			(2.3	)		(4.9	)		(4.5	)

1-4 Family Construction		152,598			(26.6	)		(31.2	)		(31.2	)
1-4 Family Investment Mortgage		906,744			(5.3	)		(9.5	)		(11.1	)
Residential Development		367,908			(33.1	)		(22.6	)		(24.0	)

Total 1-4 Family Properties		1,427,250			(15.2	)		(15.8	)		(17.3	)

Land Acquisition		909,420			(30.1	)		(22.6	)		(18.8	)

Total Commercial Real Estate		6,727,567			(9.1	)		(10.0	)		(9.6	)

Commercial, Financial, and Agricultural		5,175,114			10.2			2.3			5.6
Owner-Occupied Real Estate		3,877,578			3.9			0.9			(0.9	)

Total Commercial & Industrial		9,052,692			7.5			1.7			2.7
Home Equity Lines		1,572,986			(7.7	)		(3.8	)		(2.5	)
Consumer Mortgages		1,399,432			4.5			(1.2	)		(1.9	)
Small Business		444,783			63.5			64.2			64.4
Credit Cards		257,922			(6.8	)		(7.4	)		(3.7	)
Other Retail Loans		293,536			3.8			8.9			5.0

Total Retail		3,968,659			4.5			3.1			2.9
Unearned Income		(17,053	)		nm			nm			nm

Total	$	19,731,865			1.0	%		(2.3	)		(1.8	)

(1)	Percentage change is annualized.

Synovus

CREDIT QUALITY DATA

(Unaudited)


	2012					2011						3rd Quarter
	Third			Second		First		Fourth		Third		‘12 vs. ‘11
(Dollars in thousands)	Quarter			Quarter		Quarter		Quarter		Quarter		Change
Non-performing Loans	$	700,204			755,161		836,039		883,021		872,074		(19.7	)%
Other Loans Held for Sale ⁽¹⁾		10,019			31,306		18,317		30,156		53,074		(81.1	)
Other Real Estate		189,182			174,941		201,429		204,232		239,255		(20.9	)
Non-performing Assets		899,405			961,408		1,055,785		1,117,409		1,164,403		(22.8	)
Allowance for Loan Losses		420,404			453,325		507,794		536,494		595,383		(29.4	)
Net Charge-Offs - Quarter		96,493			98,692		94,749		113,454		138,344		(30.3	)
Net Charge-Offs / Average Loans - Quarter ⁽²⁾		1.97	%		1.99		1.90		2.26		2.72
Non-performing Loans / Loans		3.55			3.84		4.21		4.40		4.34
Non-performing Assets / Loans, Other Loans Held for Sale & ORE		4.51			4.83		5.26		5.50		5.71
Allowance / Loans		2.13			2.30		2.56		2.67		2.96
Allowance / Non-performing Loans		60.04			60.03		60.74		60.76		68.27
Allowance / Non-performing Loans ⁽³⁾		131.56			136.94		128.32		124.04		145.12
Past Due Loans over 90 days and Still Accruing	$	8,972			5,863		8,388		14,521		26,860		(66.6	)%
As a Percentage of Loans Outstanding		0.05	%		0.03		0.04		0.07		0.13
Total Past Dues Loans and Still Accruing	$	108,633			91,962		144,794		149,441		199,561		(45.6	)
As a Percentage of Loans Outstanding		0.55	%		0.47		0.73		0.74		0.99
Accruing troubled debt restructurings (TDRs)	$	698,847			687,396		651,239		668,472		640,324		9.1

(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)	September 30, 2012			December 31, 2011		September 30, 2011
Tier 1 Capital	$	2,835,948			2,780,774		2,770,971
Total Risk-Based Capital		3,465,897			3,544,089		3,533,600
Tier 1 Capital Ratio		13.23	%		12.94		12.97
Tier 1 Common Equity Ratio		8.73			8.49		8.50
Total Risk-Based Capital Ratio		16.17			16.49		16.53
Tier 1 Leverage Ratio		10.97			10.08		9.87
Common Equity as a Percentage of Total Assets ⁽²⁾		7.46			6.92		6.67
Tangible Common Equity as a Percentage of Tangible Assets ⁽³⁾		7.35			6.81		6.56
Tangible Common Equity as a Percentage of Risk Weighted Assets⁽³⁾		8.82			8.60		8.66
Book Value Per Common Share ^(4) (5)		2.11			2.06		2.07
Tangible Book Value Per Common Share ^(3) (5)		2.07			2.02		2.03

(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).