SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
January 21, 2014
Date of Report
(Date of Earliest Event Reported)
Synovus Financial Corp.
(Exact Name of Registrant as Specified in its Charter)
Georgia |
1-10312 |
58-1134883 | ||
(State of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
1111 Bay Avenue, Suite 500, Columbus, Georgia 31901 |
(Address of principal executive offices) (Zip Code) |
(706) 649-2311
(Registrants telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition | |
On January 21, 2014, Synovus Financial Corp. (the Company) issued a press release announcing the Companys financial results for the three and twelve months ended December 31, 2013.
Pursuant to General Instruction F to Current Report on Form 8-K, the press release is attached to this Current Report as Exhibit 99.1 and only those portions of the press release related to the historical results of operations of the Company for the three and twelve months ended December 31, 2013 are incorporated into this Item 2.02 by reference. The information contained in this Item 2.02, including the information set forth in the press release filed as Exhibit 99.1 to, and incorporated in, this Current Report is being furnished and shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that Section. The information in Exhibit 99.1 furnished pursuant to this Item 2.02 shall not be incorporated by reference into any registration statement or other documents pursuant to the Securities Act of 1933, as amended (the Securities Act), or into any filing or other document pursuant to the Exchange Act except as otherwise expressly stated in any such filing.
| ||
Item 7.01 | Regulation FD Disclosure | |
On January 21, 2014, the Company made available the supplemental information (the Supplemental Information) and slide presentation (Slide Presentation) prepared for use with the press release. The investor call and webcast will be held at 8:30 a.m., ET, on January 21, 2014.
Pursuant to General Instruction F to Current Report on Form 8-K, the Supplemental Information and the Slide Presentation are attached to this Current Report as Exhibits 99.2 and Exhibit 99.3, respectively, and incorporated into this Item 7.01 by reference. The information contained in this Item 7.01, including the information set forth in the Supplemental Information and Slide Presentation filed as Exhibit 99.2 and Exhibit 99.3 to, and incorporated in, this Current Report, is being furnished and shall not be deemed filed for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that Section. The information in Exhibit 99.2 and Exhibit 99.3 furnished pursuant to this Item 7.01 shall not be incorporated by reference into any registration statement or other documents pursuant to the Securities Act or into any filing or other document pursuant to the Exchange Act except as otherwise expressly stated in any such filing. |
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Item 9.01 | Financial Statements and Exhibits | |||||
(d) | Exhibits | |||||
Exhibit No. | Description | |||||
99.1 | Synovus press release dated January 21, 2014 | |||||
99.2 | Supplemental Information prepared for use with the press release | |||||
99.3 | Slide presentation prepared for use with the press release |
3
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, Synovus has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SYNOVUS FINANCIAL CORP. (Synovus) | ||||||
Dated: January 21, 2014 | By: | /s/Samuel F. Hatcher | ||||
Samuel F. Hatcher Executive Vice President, General Counsel and Secretary | ||||||
4
Exhibit 99.1
For Immediate Release
Contact: | Patrick A. Reynolds | |
Director of Investor Relations | ||
(706) 649-4973 |
Synovus Reports Earnings for Fourth Quarter of 2013
Total Loans Grow $346 Million or 7.0% Annualized
Columbus, Ga., January 21, 2014 Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended December 31, 2013.
Fourth Quarter Results
| Net income available to common shareholders was $35.8 million for the fourth quarter of 2013, compared to $37.2 million for the third quarter of 2013, and $709.3 million for the fourth quarter of 2012. Diluted net income per common share for the fourth quarter of 2013 was $0.04 compared to $0.04 for the third quarter of 2013 and $0.78 for the fourth quarter of 2012. Excluding litigation loss contingency expense and restructuring charges (net of tax), the fourth quarter of 2013 net income available to common shareholders was $44.3 million or $0.05 per diluted common share. |
¡ | The fourth quarter of 2013 results included litigation loss contingency expense of $10 million or $0.01 per share. |
¡ | The fourth quarter of 2012 results included an $800 million tax benefit related to the deferred tax asset recapture. |
| Total loans grew $346.2 million sequentially or 7.0% annualized. |
| Credit costs totaled $22.3 million for the fourth quarter of 2013, compared to $22.4 million for the third quarter of 2013 and $185.8 million for the fourth quarter of 2012. |
We were pleased to report 7% annualized sequential quarter loan growth, driven primarily by C&I and retail lending, said Kessel D. Stelling, Chairman and CEO of Synovus. Partnerships between our local bank divisions and large corporate banking teams across our five-state footprint produced meaningful results, and we saw growth in key markets such as Atlanta, Tampa, Charleston, Nashville, Savannah, and Columbus. HELOC and private client mortgages drove the growth in retail loans during the quarter. Credit quality continued to improve, and our net interest margin remained stable. Additionally, our focus on cost savings continued as we completed implementation of initiatives necessary to achieve the $30 million in expense reductions announced at the beginning of the year.
Core Performance
Pre-tax, pre-credit costs income was $96.3 million for the fourth quarter of 2013, an increase of $868 thousand from $95.4 million for the third quarter of 2013.
| Net interest income was $204.3 million for the fourth quarter of 2013, up $360 thousand from $204.0 million in the previous quarter. |
| The net interest margin was 3.38%, compared to 3.40% in the third quarter of 2013, with the yield on earning assets down four basis points and the effective cost of funds down two basis points. |
| Total non-interest income was $60.2 million for the fourth quarter of 2013, down $3.4 million, compared to $63.6 million for the third quarter of 2013, due primarily to a decline in mortgage banking income of $2.4 million and private equity investment losses of $2.1 million. |
¡ | Financial Management Services revenues were $19.5 million, up $1.6 million compared to the third quarter, dTARriven by increases in fees from customer interest rate swaps and trust services. |
| Non-interest expense for the fourth quarter of 2013 was $190.7 million, up $3.4 million from the third quarter of 2013. |
¡ | The fourth quarter of 2013 non-interest expense includes $10.0 million in litigation loss contingency expense and $3.8 million in restructuring charges. |
¡ | Adjusted non-interest expense (excludes Visa indemnification charges, restructuring charges, litigation loss contingency expense and other credit costs) was $167.9 million, down $3.2 million from $171.0 million for the third quarter of 2013, driven by declines in almost every category. |
¡ | The $30 million expense reduction initiative announced in January 2013 was fully implemented during the year. |
Balance Sheet Fundamentals
| Total reported loans ended the quarter at $20.06 billion, a $346.2 million increase from the third quarter of 2013. |
¡ | Commercial and industrial loans grew by $272.5 million from the third quarter of 2013, or 11.1% annualized. |
¡ | Retail loans grew by $75.6 million from the third quarter of 2013, or 8.4% annualized. |
¡ | Commercial real estate loans grew by $2.0 million from the third quarter of 2013. |
| Total deposits ended the quarter at $20.88 billion, down $97.1 million from the previous quarter due primarily to a decline in brokered time deposits. |
| Core deposits ended the quarter at $19.78 billion, up $84.1 million compared to the third quarter of 2013. Core deposits, excluding time deposits, increased $155.7 million compared to the previous quarter. |
Credit Quality
Broad based improvement in credit quality continued.
| Total credit costs were $22.3 million in the fourth quarter of 2013, down from $22.4 million in the third quarter of 2013 and $185.8 million in the fourth quarter of 2012. |
| Net charge-offs were $25.1 million in the fourth quarter of 2013, up from $23.0 million in the third quarter of 2013 and down from $193.5 million in the fourth quarter of 2012. The annualized net charge-off ratio was 0.51% in the fourth quarter, up from 0.47% in the previous quarter and down from 3.94% in the fourth quarter of 2012. |
| Non-performing loan inflows were $41.2 million in the fourth quarter of 2013, down from $47.4 million in the third quarter of 2013 and $262.7 million in the fourth quarter of 2012. |
| Non-performing loans, excluding loans held for sale, were $416.3 million at December 31, 2013, down $34.6 million from the previous quarter, and down $127.0 million or 23.4% from the fourth quarter of 2012. The non-performing loan ratio was 2.08% at December 31, 2013, down from 2.29% at the end of the previous quarter and 2.78% at December 31, 2012. |
| Total non-performing assets were $539.6 million at December 31, 2013, down $47.3 million from the previous quarter, and down $163.4 million or 23.2% from the fourth quarter of 2012. The non-performing asset ratio was 2.67% at December 31, 2013, compared to 2.96% at the end of the previous quarter and 3.57% at December 31, 2012. |
| Total delinquencies (consisting of loans 30 or more days past due and still accruing) declined to 0.36% of total loans at December 31, 2013, compared to 0.40% at September 30, 2013, and 0.54% at December 31, 2012. Total loans past due 90 days or more and still accruing remained low at 0.02% at December 31, 2013, compared to 0.02% at September 30, 2013, and 0.03% at December 31, 2012. |
| Distressed asset sales were approximately $68 million during the fourth quarter, compared to approximately $56 million in the third quarter of 2013, and approximately $545 million in the fourth quarter of 2012, which included the completion of a bulk asset sale in December of 2012. |
Capital Ratios
| Tier 1 Common Equity ratio was 9.93% at December 31, 2013, unchanged from September 30, 2013. |
| Tier 1 Capital ratio was 10.54% at December 31, 2013, compared to 10.55% at September 30, 2013. |
| Total Risk Based Capital ratio was 13.00% at December 31, 2013, compared to 13.04% at September 30, 2013. |
| Tier 1 Leverage ratio was 9.13% at December 31, 2013, compared to 8.96% at September 30, 2013. |
| Tangible Common Equity ratio was 10.68% at December 31, 2013, compared to 10.61% at September 30, 2013. |
Stelling concluded, Our teams 125th anniversary celebration during the fourth quarter was an appropriate way to close out a successful year defined by several important achievements, including upgrades from three rating agencies, two successful capital raises, and the redemption of our TARP obligation. Entering 2014, our capital position is strong, our customers remain our central focus, and our lending engine is gaining good traction. While expense management continues to be a major focus for our company, with additional reductions of approximately $30 million planned for 2014, we are also making strategic investments in talent, technology, and marketing that will improve our customers experience and support future growth.
Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on January 21, 2014. The earnings call will be accompanied by a slide presentation. Shareholders and other interested parties can access the slide presentation and listen to the conference call via simultaneous Internet broadcast at www.synovus.com by clicking on the Live Webcast icon. RealPlayer or Windows Media Player can be downloaded prior to accessing the actual call or the replay. The replay will be archived for 12 months and will be available 30-45 minutes after the call.
About Synovus
Synovus Financial Corp. is a financial services company based in Columbus, Georgia, with approximately $26 billion in assets. Synovus Financial Corp. provides commercial and retail banking, investment and mortgage services to customers in Georgia, Alabama, South Carolina, Florida and Tennessee. See Synovus Financial Corp. on the web at www.synovus.com.
Forward-Looking Statements
This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute forward-looking statements within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements through Synovus use of words such as believes, anticipates, expects, may, will, assumes, should, predicts, could, would, intends, targets, estimates, projects, plans, potential and other similar words and expressions of the future or otherwise regarding the outlook for Synovus future business and financial performance and/or the performance of the commercial banking industry and economy in general. These forward-looking statements include, among others, our expectations on credit trends and key credit metrics; expectations regarding deposits, loan growth and the net interest margin; expectations on our growth strategy, strategic investments, expense initiatives, and future profitability; and the assumptions underlying our expectations. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Synovus to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, Synovus management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements in this report. Many of these factors are beyond Synovus ability to control or predict.
These forward-looking statements are based upon information presently known to Synovus management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in Synovus filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2012 under the captions Cautionary Notice Regarding Forward-Looking Statements and Risk Factors and in Synovus quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as otherwise may be required by law.
Use of Non-GAAP Financial Measures
The measures entitled core deposits, core deposits excluding time deposits, tangible common equity to tangible assets ratio, Tier 1 common equity ratio, net income available to common shareholders excluding litigation loss contingency expense and restructuring charges, pre-tax, pre-credit costs income, and adjusted non-interest expense are not measures recognized under U.S. generally accepted accounting principles (GAAP) and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are total deposits, total shareholders equity to total assets ratio, Tier 1 capital to risk-weighted assets ratio, net income available to common shareholders, income (loss) before income taxes, and total non-interest expense, respectively.
Synovus believes that these non-GAAP financial measures provide meaningful additional information about Synovus to assist management and investors in evaluating Synovus capital strength and the performance of its core business. These non-GAAP financial measures should not be considered as substitutes for total deposits, total shareholders equity to total assets ratio, Tier 1 capital to risk-weighted assets ratio, net income available to common shareholders, income (loss) before income taxes, or total non-interest expense determined in accordance with GAAP and may not be comparable to other similarly titled measures at other companies.
The computations of core deposits, core deposits excluding time deposits, tangible common equity to tangible assets ratio, Tier 1 common equity ratio, net income available to common shareholders excluding litigation loss contingency expense and restructuring charges, pre-tax, pre-credit costs income, and adjusted non-interest expense, and the reconciliation of these measures to total deposits, total shareholders equity to total assets ratio, Tier 1 capital to risk-weighted assets ratio, income (loss) before income taxes, and total non-interest expense are set forth in the tables below.
Reconciliation of Non-GAAP Financial Measures |
||||||||||||||||||||
(dollars in thousands) |
4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q12 | |||||||||||||||
Net income available to common shareholders excluding litigation loss contingency expense and restructuring charges |
||||||||||||||||||||
Net income available to common shareholders |
$ 35,849 | |||||||||||||||||||
Add: Litigation loss contingency expense (after-tax) |
6,110 | |||||||||||||||||||
Add: Restructuring charges (after-tax) |
2,303 | |||||||||||||||||||
Net income available to common shareholders excluding litigation loss contingency expense and restructuring charges |
$ 44,262 | |||||||||||||||||||
Weighted average common shares outstanding - diluted |
975,933 | |||||||||||||||||||
Net income per common share, diluted, excluding litigation loss contingency expense and restructuring charges |
$ 0.05 | |||||||||||||||||||
Pre-tax, Pre-credit Costs Income |
||||||||||||||||||||
Income (loss) before income taxes |
$ 59,709 | 73,459 | 72,906 | 46,553 | (72,299) | |||||||||||||||
Add: Provision for losses on loans |
14,064 | 6,761 | 13,077 | 35,696 | 146,526 | |||||||||||||||
Add: Other credit costs(1) |
8,285 | 15,603 | 10,887 | 13,595 | 39,236 | |||||||||||||||
Add: Restructuring charges |
3,770 | 687 | 1,758 | 4,850 | 1,969 | |||||||||||||||
Add: Litigation loss contingency expense(2) |
10,000 | - | - | - | - | |||||||||||||||
Subtract: Investment securities gains, net |
(373) | (1,124) | (1,403) | (45) | (8,233) | |||||||||||||||
Add: Visa indemnification charges |
799 | - | 764 | 37 | 757 | |||||||||||||||
Pre-tax, pre-credit costs income |
$ 96,254 | 95,386 | 97,989 | 100,686 | 107,956 | |||||||||||||||
Adjusted Non-interest Expense |
||||||||||||||||||||
Total non-interest expense |
$ 190,738 | 187,328 | 181,186 | 182,286 | 213,346 | |||||||||||||||
Subtract: Other credit costs(1) |
(8,285) | (15,603) | (10,887) | (13,595) | (39,236) | |||||||||||||||
Subtract: Restructuring charges |
(3,770) | (687) | (1,758) | (4,850) | (1,969) | |||||||||||||||
Subtract: Visa indemnification charges |
(799) | - | (764) | (37) | (757) | |||||||||||||||
Subtract: Litigation loss contingency expense(2) |
(10,000) | - | - | - | - | |||||||||||||||
Adjusted non-interest expense |
$ 167,884 | 171,038 | 167,777 | 163,804 | 171,384 | |||||||||||||||
Core deposits |
||||||||||||||||||||
Core deposits excluding time deposits |
||||||||||||||||||||
Total deposits |
$ 20,876,790 | 20,973,856 | 20,710,703 | 20,561,193 | 21,057,044 | |||||||||||||||
Subtract: Brokered deposits |
(1,094,002) | (1,275,200) | (1,338,064) | (1,332,632) | (1,092,749) | |||||||||||||||
Core deposits |
19,782,788 | 19,698,656 | 19,372,639 | 19,228,561 | 19,964,295 | |||||||||||||||
Subtract: Time deposits |
(3,498,200) | (3,569,752) | (3,377,215) | (3,482,196) | (3,583,304) | |||||||||||||||
Core deposits excluding time deposits |
$ 16,284,588 | 16,128,904 | 15,995,424 | 15,746,365 | 16,380,991 |
Tier 1 Common Equity Ratio |
||||||||||||||||||||
Total shareholders equity |
$ 2,948,985 | 2,931,860 | 3,568,204 | 3,578,106 | 3,569,431 | |||||||||||||||
Add/subtract: Accumulated other comprehensive loss (income) |
41,258 | 29,514 | 33,060 | (2,787) | (4,101) | |||||||||||||||
Subtract: Goodwill |
(24,431) | (24,431) | (24,431) | (24,431) | (24,431) | |||||||||||||||
Subtract: Other intangible assets, net |
(3,415) | (3,783) | (4,156) | (4,583) | (5,149) | |||||||||||||||
Subtract: Disallowed deferred tax asset |
(618,516) | (647,828) | (674,996) | (687,007) | (710,488) | |||||||||||||||
Other items |
7,612 | 7,426 | 7,304 | 7,191 | 6,982 | |||||||||||||||
Tier 1 capital |
2,351,493 | 2,292,758 | 2,904,985 | 2,866,489 | 2,832,244 | |||||||||||||||
Subtract: Qualifying trust preferred securities |
(10,000) | (10,000) | (10,000) | (10,000) | (10,000) | |||||||||||||||
Subtract: Series C Preferred Stock, no par value |
(125,862) | (125,400) | - | - | - | |||||||||||||||
Subtract: Series A Preferred Stock, no par value |
- | - | (962,725) | (960,005) | (957,327) | |||||||||||||||
Tier 1 common equity |
2,215,631 | 2,157,358 | 1,932,260 | 1,896,484 | 1,864,917 | |||||||||||||||
Risk-weighted assets |
22,312,655(3) | 21,735,363 | 21,542,287 | 21,235,129 | 21,387,935 | |||||||||||||||
Tier 1 common equity ratio |
9.93%(3) | 9.93 | 8.97 | 8.93 | 8.72 | |||||||||||||||
Tangible common equity to tangible assets ratio |
||||||||||||||||||||
Total assets |
$ 26,201,604 | 26,218,360 | 26,563,174 | 26,212,879 | 26,760,012 | |||||||||||||||
Subtract: Goodwill |
(24,431) | (24,431) | (24,431) | (24,431) | (24,431) | |||||||||||||||
Subtract: Other intangible assets, net |
(3,415) | (3,783) | (4,156) | (4,583) | (5,149) | |||||||||||||||
Tangible assets |
$ 26,173,758 | 26,190,146 | 26,534,587 | 26,183,865 | 26,730,432 | |||||||||||||||
Total shareholders equity |
$ 2,948,985 | 2,931,860 | 3,568,204 | 3,578,106 | 3,569,431 | |||||||||||||||
Subtract: Goodwill |
(24,431) | (24,431) | (24,431) | (24,431) | (24,431) | |||||||||||||||
Subtract: Other intangible assets, net |
(3,415) | (3,783) | (4,156) | (4,583) | (5,149) | |||||||||||||||
Subtract: Series C Preferred Stock, no par value |
(125,862) | (125,400) | - | - | - | |||||||||||||||
Subtract: Series A Preferred Stock, no par value |
- | - | (962,725) | (960,005) | (957,327) | |||||||||||||||
Tangible common equity |
$ 2,795,277 | 2,778,246 | 2,576,892 | 2,589,087 | 2,582,524 | |||||||||||||||
Total shareholders equity to total assets ratio |
11.25% | 11.18 | 13.43 | 13.65 | 13.34 | |||||||||||||||
Tangible common equity to tangible assets ratio |
10.68% | 10.61 | 9.71 | 9.89 | 9.66 | |||||||||||||||
(1) Other credit costs consist primarily of foreclosed real estate expense, net (2) Consists of loss contingency accruals with respect to outstanding legal matters. Amounts for periods prior to the three months ended December 31, 2013 are not disclosed separately as amounts are not material. (3) Preliminary |
|
###
Exhibit 99.2
Synovus
INCOME STATEMENT DATA | Twelve Months Ended | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(Dollars in thousands, except per share data)
|
December 31,
| |||||||||||||||||||
|
| |||||||||||||||||||
2013
|
2012
|
Change
|
||||||||||||||||||
|
| |||||||||||||||||||
Interest income |
$ |
|
929,014 |
|
1,004,140 | (7.5) | % | |||||||||||||
Interest expense
|
|
118,822
|
|
|
150,023
|
|
|
(20.8)
|
|
|||||||||||
|
|
|
|
|
|
|||||||||||||||
Net interest income |
810,192 | 854,117 | (5.1) | |||||||||||||||||
Provision for loan losses
|
|
69,598
|
|
|
320,369
|
|
|
(78.3)
|
|
|||||||||||
|
|
|
|
|
|
|||||||||||||||
Net interest income after provision for loan losses
|
|
740,594
|
|
|
533,748
|
|
|
38.8
|
|
|||||||||||
|
|
|
|
|
|
|||||||||||||||
Non-interest income: |
||||||||||||||||||||
Service charges on deposit accounts |
77,789 | 78,203 | (0.5) | |||||||||||||||||
Fiduciary and asset management fees |
43,450 | 42,503 | 2.2 | |||||||||||||||||
Brokerage revenue |
27,538 | 26,913 | 2.3 | |||||||||||||||||
Mortgage banking income |
22,482 | 32,272 | (30.3) | |||||||||||||||||
Bankcard fees |
30,641 | 34,075 | (10.1) | |||||||||||||||||
Investment securities gains, net |
2,945 | 39,142 | (92.5) | |||||||||||||||||
Other fee income |
22,567 | 21,138 | 6.8 | |||||||||||||||||
(Decrease) increase in fair value of private equity investments, net |
(2,963) | 8,233 | nm | |||||||||||||||||
Other non-interest income |
|
29,122
|
|
|
31,487
|
|
|
(7.5)
|
|
|||||||||||
|
|
|
|
|
|
|||||||||||||||
Total non-interest income |
|
253,571
|
|
|
313,966
|
|
|
(19.2)
|
|
|||||||||||
|
|
|
|
|
|
|||||||||||||||
Non-interest expense: |
||||||||||||||||||||
Salaries and other personnel expense |
368,152 | 375,872 | (2.1) | |||||||||||||||||
Net occupancy and equipment expense |
103,339 | 105,575 | (2.1) | |||||||||||||||||
FDIC insurance and other regulatory fees |
32,758 | 45,408 | (27.9) | |||||||||||||||||
Foreclosed real estate expense, net |
33,864 | 90,655 | (62.6) | |||||||||||||||||
Losses on other loans held for sale, net |
329 | 4,681 | (93.0) | |||||||||||||||||
Professional fees |
38,776 | 41,307 | (6.1) | |||||||||||||||||
Third-party services |
40,135 | 38,006 | 5.6 | |||||||||||||||||
Visa indemnification charges |
1,600 | 6,304 | (74.6) | |||||||||||||||||
Litigation loss contingency expense (1) |
10,000 | - | nm | |||||||||||||||||
Restructuring charges |
11,064 | 5,412 | 104.4 | |||||||||||||||||
Other operating expenses |
|
101,520
|
|
|
103,017
|
|
|
(1.5)
|
|
|||||||||||
|
|
|
|
|
|
|||||||||||||||
Total non-interest expense
|
|
741,537
|
|
|
816,237
|
|
|
(9.2)
|
|
|||||||||||
|
|
|
|
|
|
|||||||||||||||
Income before income taxes |
252,628 | 31,477 | nm | |||||||||||||||||
Income tax expense (benefit)
|
|
93,245
|
|
|
(798,732)
|
|
|
nm
|
|
|||||||||||
|
|
|
|
|
|
|||||||||||||||
Net income |
159,383 | 830,209 | (80.8) | |||||||||||||||||
Dividends and accretion of discount on preferred stock
|
|
40,830
|
|
|
58,703
|
|
|
(30.4)
|
|
|||||||||||
|
|
|
|
|
|
|||||||||||||||
Net income available to common shareholders |
$
|
|
118,553
|
|
|
771,506
|
|
|
(84.6)
|
|
||||||||||
|
|
|
|
|
|
|||||||||||||||
Net income per common share, basic |
0.13 | 0.98 | (86.5) | |||||||||||||||||
Net income per common share, diluted |
0.13 | 0.85 | (85.1) | |||||||||||||||||
Cash dividends declared per common share |
0.04 | 0.04 | - | |||||||||||||||||
Return on average assets |
0.61 | % | 3.15 | (80.6) | ||||||||||||||||
Return on average common equity |
4.39 | 40.65 | (89.2) | |||||||||||||||||
Weighted average common shares outstanding, basic |
892,462 | 786,466 | 13.5 | % | ||||||||||||||||
Weighted average common shares outstanding, diluted |
939,580 | 910,102 | 3.2 |
nm - not meaningful
(1) | Consists of loss contingency accruals with respect to outstanding legal matters. Amounts for periods prior to the three months ended December 31, 2013 are not disclosed separately as amounts are not material. |
Synovus
INCOME STATEMENT DATA | ||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | 2013 |
2012 |
4th Quarter |
|||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||
Fourth |
Third |
Second |
First |
Fourth |
13 vs. 12 |
|||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||
Interest income |
$ | 233,259 | 233,852 | 231,513 | 230,391 | 240,000 | (2.8) | % | ||||||||||||||||||||||||||||
Interest expense |
28,928 | 29,882 | 29,436 | 30,577 | 32,544 | (11.1) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Net interest income |
204,331 | 203,970 | 202,077 | 199,814 | 207,456 | (1.5) | ||||||||||||||||||||||||||||||
Provision for loan losses |
14,064 | 6,761 | 13,077 | 35,696 | 146,526 | (90.4) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Net interest income after provision for loan losses |
190,267 | 197,209 | 189,000 | 164,118 | 60,930 | 212.3 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Non-interest income: |
||||||||||||||||||||||||||||||||||||
Service charges on deposit accounts |
19,647 | 19,426 | 19,195 | 19,521 | 20,883 | (5.9) | ||||||||||||||||||||||||||||||
Fiduciary and asset management fees |
10,978 | 10,389 | 11,111 | 10,971 | 10,537 | 4.2 | ||||||||||||||||||||||||||||||
Brokerage revenue |
6,307 | 6,636 | 7,002 | 7,594 | 7,127 | (11.5) | ||||||||||||||||||||||||||||||
Mortgage banking income |
2,913 | 5,314 | 7,338 | 6,917 | 9,025 | (67.7) | ||||||||||||||||||||||||||||||
Bankcard fees |
7,979 | 7,760 | 7,838 | 7,064 | 10,137 | (21.3) | ||||||||||||||||||||||||||||||
Investment securities gains, net |
373 | 1,124 | 1,403 | 45 | 8,233 | (95.5) | ||||||||||||||||||||||||||||||
Other fee income |
6,106 | 5,199 | 5,775 | 5,487 | 6,211 | (1.7) | ||||||||||||||||||||||||||||||
(Decrease) increase in fair value of private equity investments, net |
(2,108) | 284 | (883) | (257) | 1,805 | nm | ||||||||||||||||||||||||||||||
Other non-interest income |
7,986 | 7,446 | 6,313 | 7,379 | 6,159 | 29.7 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total non-interest income |
60,181 | 63,578 | 65,092 | 64,721 | 80,117 | (24.9) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Non-interest expense: |
||||||||||||||||||||||||||||||||||||
Salaries and other personnel expense |
91,962 | 92,794 | 89,479 | 93,917 | 94,901 | (3.1) | ||||||||||||||||||||||||||||||
Net occupancy and equipment expense |
26,314 | 26,475 | 26,383 | 24,167 | 26,063 | 1.0 | ||||||||||||||||||||||||||||||
FDIC insurance and other regulatory fees |
8,699 | 7,639 | 7,941 | 8,480 | 8,237 | 5.6 | ||||||||||||||||||||||||||||||
Foreclosed real estate expense, net |
5,064 | 10,359 | 7,502 | 10,940 | 34,978 | (85.5) | ||||||||||||||||||||||||||||||
Losses (gains) on other loans held for sale, net |
(159) | 408 | (86) | 165 | 675 | (123.6) | ||||||||||||||||||||||||||||||
Professional fees |
9,855 | 11,410 | 10,416 | 7,095 | 12,037 | (18.1) | ||||||||||||||||||||||||||||||
Third-party services |
9,689 | 10,151 | 10,366 | 9,929 | 9,540 | 1.6 | ||||||||||||||||||||||||||||||
Visa indemnification charges |
799 | - | 764 | 37 | 757 | 5.5 | ||||||||||||||||||||||||||||||
Litigation loss contingency expense (1) |
10,000 | - | - | - | - | nm | ||||||||||||||||||||||||||||||
Restructuring charges |
3,770 | 687 | 1,758 | 4,850 | 1,969 | 91.5 | ||||||||||||||||||||||||||||||
Other operating expenses |
24,745 | 27,405 | 26,663 | 22,706 | 24,189 | 2.3 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total non-interest expense |
190,738 | 187,328 | 181,186 | 182,286 | 213,346 | (10.6) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Income before income taxes |
59,710 | 73,459 | 72,906 | 46,553 | (72,299) | 182.6 | ||||||||||||||||||||||||||||||
Income tax expense (benefit) |
21,131 | 27,765 | 27,371 | 16,979 | (796,339) | nm | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Net income |
38,579 | 45,694 | 45,535 | 29,574 | 724,040 | (94.7) | ||||||||||||||||||||||||||||||
Dividends and accretion of discount on preferred stock |
2,730 | 8,506 | 14,818 | 14,776 | 14,736 | (81.5) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Net income available to common shareholders |
$ | 35,849 | 37,188 | 30,717 | 14,798 | 709,304 | (94.9) | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Net income per common share, basic |
0.04 | 0.04 | 0.04 | 0.02 | 0.90 | (95.9) | ||||||||||||||||||||||||||||||
Net income per common share, diluted |
0.04 | 0.04 | 0.03 | 0.02 | 0.78 | (95.3) | ||||||||||||||||||||||||||||||
Cash dividends declared per common share |
0.01 | 0.01 | 0.01 | 0.01 | 0.01 | - | ||||||||||||||||||||||||||||||
Return on average assets * |
0.58 | % | 0.69 | % | 0.69 | % | 0.46 | % | 11.13 | (94.8) | ||||||||||||||||||||||||||
Return on average common equity * |
5.04 | 5.40 | 4.70 | 2.30 | 149.46 | (96.6) | ||||||||||||||||||||||||||||||
Weighted average common shares outstanding, basic |
972,279 | 956,694 | 851,093 | 787,043 | 786,576 | 23.6 | % | |||||||||||||||||||||||||||||
Weighted average common shares outstanding, diluted |
975,933 | 959,680 | 910,937 | 910,835 | 911,251 | 7.1 |
nm - not meaningful
* - ratios are annualized
(1) | Consists of loss contingency accruals with respect to outstanding legal matters. Amounts for periods prior to the three months ended December 31, 2013 are not disclosed separately as amounts are not material. |
Synovus
|
|
|
|
|
|
|||||||||
BALANCE SHEET DATA | December 31, 2013 | September 30, 2013 | December 31, 2012 | |||||||||||
(Unaudited) | ||||||||||||||
(In thousands, except share data) | ||||||||||||||
ASSETS |
||||||||||||||
Cash and cash equivalents |
$ |
469,630 | 514,694 | 614,630 | ||||||||||
Interest bearing funds with Federal Reserve Bank |
644,528 | 966,435 | 1,498,390 | |||||||||||
Interest earning deposits with banks |
24,325 | 14,060 | 23,442 | |||||||||||
Federal funds sold and securities purchased under resale agreements |
80,975 | 80,177 | 113,517 | |||||||||||
Trading account assets, at fair value |
6,113 | 17,363 | 11,102 | |||||||||||
Mortgage loans held for sale, at fair value |
45,384 | 61,232 | 212,663 | |||||||||||
Other loans held for sale |
10,685 | 9,351 | 10,690 | |||||||||||
Investment securities available for sale, at fair value |
3,199,358 | 3,151,344 | 2,981,112 | |||||||||||
Loans, net of deferred fees and costs |
20,057,798 | 19,711,610 | 19,541,690 | |||||||||||
Allowance for loan losses |
(307,560) | (318,612) | (373,405) | |||||||||||
|
|
|
|
|
|
|||||||||
Loans, net |
19,750,238 | 19,392,998 | 19,168,285 | |||||||||||
|
|
|
|
|
|
|||||||||
Premises and equipment, net |
468,871 | 476,088 | 479,546 | |||||||||||
Goodwill |
24,431 | 24,431 | 24,431 | |||||||||||
Other intangible assets, net |
3,415 | 3,783 | 5,149 | |||||||||||
Other real estate |
112,629 | 126,640 | 150,271 | |||||||||||
Deferred tax asset, net |
744,646 | 763,050 | 806,406 | |||||||||||
Other assets |
616,376 | 616,714 | 660,378 | |||||||||||
|
|
|
|
|
|
|||||||||
Total assets |
$ | 26,201,604 | 26,218,360 | 26,760,012 | ||||||||||
|
|
|
|
|
|
|||||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||||||||
Liabilities: |
||||||||||||||
Deposits: |
||||||||||||||
Non-interest bearing deposits |
$ | 5,642,751 | 5,358,659 | 5,665,527 | ||||||||||
Interest bearing deposits, excluding brokered deposits |
14,140,037 | 14,339,997 | 14,298,768 | |||||||||||
Brokered deposits |
1,094,002 | 1,275,200 | 1,092,749 | |||||||||||
|
|
|
|
|
|
|||||||||
Total deposits |
20,876,790 | 20,973,856 | 21,057,044 | |||||||||||
Federal funds purchased, securities sold under repurchase agreements, and other short-term liabilities |
148,132 | 194,613 | 201,243 | |||||||||||
Long-term debt |
2,033,141 | 1,885,057 | 1,726,455 | |||||||||||
Other liabilities |
194,556 | 232,974 | 205,839 | |||||||||||
|
|
|
|
|
|
|||||||||
Total liabilities |
23,252,619 | 23,286,500 | 23,190,581 | |||||||||||
|
|
|
|
|
|
|||||||||
Shareholders equity: |
||||||||||||||
Series A Preferred Stock - no par value, 967,870 shares outstanding at December 31, 2012 |
- | - | 957,327 | |||||||||||
Series C Preferred Stock - no par value, 5,200,000 shares outstanding at December 31, 2013 and September 30, 2013 |
125,862 | 125,400 | - | |||||||||||
Common stock - $1.00 par value. 972,351,457 shares outstanding at December 31, 2013, 972,230,238 shares outstanding at September 30, 2013, and 786,579,240 shares outstanding at December 31, 2012 |
978,045 | 977,924 | 792,273 | |||||||||||
Additional paid-in capital |
2,138,024 | 2,138,593 | 2,189,874 | |||||||||||
Treasury stock, at cost - 5,693,452 shares |
(114,176) | (114,176) | (114,176) | |||||||||||
Accumulated other comprehensive (loss) income |
(41,258) | (29,514) | 4,101 | |||||||||||
Accumulated deficit |
(137,512) | (166,367) | (259,968) | |||||||||||
|
|
|
|
|
|
|||||||||
Total shareholders equity |
2,948,985 | 2,931,860 | 3,569,431 | |||||||||||
Total liabilities and shareholders equity |
$ | 26,201,604 | 26,218,360 | 26,760,012 | ||||||||||
|
|
|
|
|
|
Synovus
AVERAGE BALANCES AND YIELDS/RATES (1) | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
2013
|
2012 | |||||||||||||||||||||
Fourth
|
Third Quarter |
Second Quarter |
First Quarter |
Fourth Quarter |
||||||||||||||||||
Interest Earning Assets |
||||||||||||||||||||||
Taxable investment securities (2) |
$ | 3,196,561 | 3,062,976 | 3,034,152 | 2,984,129 | 3,069,000 | ||||||||||||||||
Yield
|
1.94 | % | 1.79 | 1.70 | 1.42 | 1.62 | ||||||||||||||||
Tax-exempt investment securities (2) (4) |
$ | 7,758 | 9,835 | 11,435 | 14,362 | 17,377 | ||||||||||||||||
Yield (taxable equivalent)
|
6.14 | % | 6.26 | 6.47 | 6.34 | 6.59 | ||||||||||||||||
Trading account assets |
$ | 10,021 | 13,806 | 7,847 | 8,629 | 9,600 | ||||||||||||||||
Yield
|
4.60 | % | 4.50 | 6.34 | 7.12 | 8.04 | ||||||||||||||||
Commercial loans (3) (4) |
$ | 16,217,373 | 16,067,424 | 16,075,832 | 16,000,000 | 16,171,318 | ||||||||||||||||
Yield
|
4.28 | % | 4.37 | 4.39 | 4.48 | 4.50 | ||||||||||||||||
Consumer loans (3) |
$ | 3,615,836 | 3,528,057 | 3,454,874 | 3,461,622 | 3,514,256 | ||||||||||||||||
Yield
|
4.50 | % | 4.61 | 4.62 | 4.68 | 4.70 | ||||||||||||||||
Allowance for loan losses
|
$ | (316,001) | (328,084) | (351,075) | (372,239) | (405,237) | ||||||||||||||||
|
|
|||||||||||||||||||||
Loans, net (3) |
$ | 19,517,208 | 19,267,397 | 19,179,631 | 19,089,383 | 19,280,337 | ||||||||||||||||
Yield
|
4.40 | % | 4.50 | 4.52 | 4.54 | 4.65 | ||||||||||||||||
Mortgage loans held for sale |
$ | 46,036 | 85,493 | 129,742 | 179,507 | 208,839 | ||||||||||||||||
Yield
|
3.94 | % | 4.07 | 4.35 | 3.80 | 3.72 | ||||||||||||||||
Federal funds sold, due from Federal Reserve Bank, and other short-term investments |
$ | 1,235,144 | 1,375,921 | 1,550,113 | 1,343,652 | 1,366,422 | ||||||||||||||||
Yield
|
0.24 | % | 0.24 | 0.24 | 0.24 | 0.24 | ||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stock (5) |
$ | 70,815 | 70,741 | 65,014 | 65,330 | 66,630 | ||||||||||||||||
Yield
|
2.85 | % | 2.30 | 2.35 | 2.36 | 2.03 | ||||||||||||||||
Total interest earning assets |
$ | 24,083,543 | 23,886,169 | 23,977,934 | 23,684,992 | 24,018,205 | ||||||||||||||||
Yield
|
3.85 | % | 3.89 | 3.88 | 3.95 | 3.99 | ||||||||||||||||
Interest Bearing Liabilities |
||||||||||||||||||||||
Interest bearing demand deposits |
$ | 4,102,398 | 3,933,902 | 3,895,675 | 3,839,707 | 3,872,025 | ||||||||||||||||
Rate
|
0.19 | % | 0.23 | 0.18 | 0.18 | 0.18 | ||||||||||||||||
Money market accounts |
$ | 6,161,893 | 6,148,289 | 6,072,155 | 6,135,649 | 6,251,374 | ||||||||||||||||
Rate
|
0.33 | % | 0.33 | 0.33 | 0.33 | 0.33 | ||||||||||||||||
Savings deposits |
$ | 605,054 | 607,144 | 609,832 | 581,792 | 558,726 | ||||||||||||||||
Rate
|
0.10 | % | 0.11 | 0.11 | 0.11 | 0.10 | ||||||||||||||||
Time deposits under $100,000 |
$ | 1,491,673 | 1,526,974 | 1,537,639 | 1,581,092 | 1,648,554 | ||||||||||||||||
Rate
|
0.61 | % | 0.62 | 0.64 | 0.69 | 0.74 | ||||||||||||||||
Time deposits over $100,000 |
$ | 2,049,094 | 2,022,719 | 1,891,624 | 1,958,870 | 2,015,582 | ||||||||||||||||
Rate
|
0.80 | % | 0.84 | 0.88 | 0.93 | 0.99 | ||||||||||||||||
Brokered money market accounts |
$ | 210,380 | 202,802 | 202,532 | 202,734 | 180,216 | ||||||||||||||||
Rate
|
0.27 | % | 0.27 | 0.31 | 0.32 | 0.34 | ||||||||||||||||
Brokered time deposits |
$ | 984,047 | 1,130,491 | 1,131,444 | 1,013,461 | 800,434 | ||||||||||||||||
Rate
|
0.65 | % | 0.70 | 0.77 | 0.99 | 1.42 | ||||||||||||||||
|
|
|||||||||||||||||||||
Total interest bearing deposits |
$ | 15,604,539 | 15,572,321 | 15,340,901 | 15,313,305 | 15,326,911 | ||||||||||||||||
Rate
|
0.39 | % | 0.42 | 0.42 | 0.44 | 0.47 | ||||||||||||||||
Federal funds purchased and other short-term liabilities |
$ | 216,757 | 195,717 | 206,046 | 214,661 | 266,431 | ||||||||||||||||
Rate
|
0.15 | % | 0.14 | 0.15 | 0.17 | 0.17 | ||||||||||||||||
Long-term debt |
$ | 1,886,223 | 1,885,385 | 1,762,173 | 1,688,580 | 1,740,588 | ||||||||||||||||
Rate
|
2.85 | % | 2.85 | 3.06 | 3.26 | 3.31 | ||||||||||||||||
Total interest bearing liabilities |
$ | 17,707,519 | 17,653,423 | 17,309,120 | 17,216,546 | 17,333,930 | ||||||||||||||||
Rate |
0.65 | % | 0.67 | 0.68 | 0.72 | 0.75 | ||||||||||||||||
Non-interest bearing demand deposits |
$ | 5,545,529 | 5,306,447 | 5,327,795 | 5,232,587 | 5,466,312 | ||||||||||||||||
Effective cost of funds |
0.47 | % | 0.49 | 0.49 | 0.52 | 0.54 | ||||||||||||||||
Net interest margin |
3.38 | % | 3.40 | 3.39 | 3.43 | 3.45 | ||||||||||||||||
Taxable equivalent adjustment |
$ | 481 | 529 | 557 | 618 | 766 |
(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) |
December 31, 2013 | ||||||||||||||||||||||||||||
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 |
$ | 945,014 | 4.7 | % | $ | 788 | 0.2 | % | ||||||||||||||||||||
Hotels |
686,292 | 3.4 | 1,230 | 0.3 | ||||||||||||||||||||||||
Office Buildings |
859,954 | 4.3 | 4,211 | 1.0 | ||||||||||||||||||||||||
Shopping Centers |
846,965 | 4.2 | 11,176 | 2.7 | ||||||||||||||||||||||||
Commercial Development |
155,377 | 0.8 | 35,473 | 8.5 | ||||||||||||||||||||||||
Warehouses |
560,824 | 2.8 | 2,093 | 0.5 | ||||||||||||||||||||||||
Other Investment Property |
512,253 | 2.6 | 11,483 | 2.8 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total Investment Properties
|
4,566,679 | 22.8 | 66,454 | 16.1 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
1-4 Family Construction |
141,840 | 0.7 | 2,547 | 0.6 | ||||||||||||||||||||||||
1-4 Family Investment Mortgage |
836,265 | 4.2 | 16,752 | 4.0 | ||||||||||||||||||||||||
Residential Development |
185,148 | 0.9 | 14,519 | 3.5 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total 1-4 Family Properties
|
1,163,253 | 5.8 | 33,818 | 8.1 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Land Acquisition
|
707,820 | 3.5 | 154,096 | 37.0 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total Commercial Real Estate
|
6,437,752 | 32.1 | 254,368 | 61.1 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial, Financial, and Agricultural (2) |
6,185,955 | 30.8 | 65,236 | 15.7 | ||||||||||||||||||||||||
Owner-Occupied Real Estate
|
3,814,720 | 19.0 | 36,980 | 8.9 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total Commercial & Industrial
|
10,000,675 | 49.9 | 102,216 | 24.6 | ||||||||||||||||||||||||
Home Equity Lines |
1,587,541 | 7.9 | 17,908 | 4.3 | ||||||||||||||||||||||||
Consumer Mortgages |
1,519,068 | 7.6 | 39,770 | 9.6 | ||||||||||||||||||||||||
Credit Cards |
256,846 | 1.3 | - | - | ||||||||||||||||||||||||
Other Retail Loans
|
284,778 | 1.4 | 2,038 | 0.5 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total Retail
|
3,648,233 | 18.1 | 59,716 | 14.3 | ||||||||||||||||||||||||
Unearned Income
|
(28,862) | nm | - | nm | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total |
$ | 20,057,798 | 100.0 | % | $ | 416,300 | 100.0 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
LOANS OUTSTANDING BY TYPE COMPARISON |
||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|||||||||||||||||||||||
Loan Type |
Total Loans December 31, 2013 |
September 30, 2013 | 4Q13 vs. 3Q13 % change (1) |
December 31, 2012 | 4Q13 vs. 4Q12 % change |
|||||||||||||||||||||||
Multi-Family |
$ | 945,014 | 953,631 | (3.6) | 796,110 | 18.7 | % | |||||||||||||||||||||
Hotels |
686,292 | 655,593 | 18.6 | 686,067 | 0.0 | |||||||||||||||||||||||
Office Buildings |
859,954 | 799,613 | 29.9 | 773,881 | 11.1 | |||||||||||||||||||||||
Shopping Centers |
846,965 | 866,460 | (8.9) | 896,869 | (5.6) | |||||||||||||||||||||||
Commercial Development |
155,377 | 167,435 | (28.6) | 226,513 | (31.4) | |||||||||||||||||||||||
Warehouses |
560,824 | 552,378 | 6.1 | 538,157 | 4.2 | |||||||||||||||||||||||
Other Investment Property
|
512,253 | 521,576 | (7.1) | 498,884 | 2.7 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total Investment Properties
|
4,566,679 | 4,516,686 | 4.4 | 4,416,481 | 3.4 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
1-4 Family Construction |
141,840 | 138,719 | 8.9 | 137,778 | 2.9 | |||||||||||||||||||||||
1-4 Family Investment Mortgage |
836,265 | 853,060 | (7.8) | 865,801 | (3.4) | |||||||||||||||||||||||
Residential Development |
185,148 | 196,051 | (22.1) | 282,463 | (34.5) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total 1-4 Family Properties
|
1,163,253 | 1,187,830 | (8.2) | 1,286,042 | (9.5) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Land Acquisition
|
707,820 | 731,278 | (12.7) | 795,341 | (11.0) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total Commercial Real Estate
|
6,437,752 | 6,435,794 | 0.1 | 6,497,864 | (0.9) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Commercial, Financial, and Agricultural (2) |
6,185,955 | 5,971,069 | 14.3 | 5,291,078 | 16.9 | |||||||||||||||||||||||
Owner-Occupied Real Estate
|
3,814,720 | 3,757,080 | 6.1 | 4,278,373 | (10.8) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total Commercial & Industrial
|
10,000,675 | 9,728,149 | 11.1 | 9,569,451 | 4.5 | |||||||||||||||||||||||
Home Equity Lines |
1,587,541 | 1,549,582 | 9.7 | 1,542,397 | 2.9 | |||||||||||||||||||||||
Consumer Mortgages |
1,519,068 | 1,482,860 | 9.7 | 1,411,561 | 7.6 | |||||||||||||||||||||||
Credit Cards |
256,846 | 253,805 | 4.8 | 263,561 | (2.5) | |||||||||||||||||||||||
Other Retail Loans
|
284,778 | 286,422 | (2.3) | 277,229 | 2.7 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total Retail
|
3,648,233 | 3,572,669 | 8.4 | 3,494,748 | 4.4 | |||||||||||||||||||||||
Unearned Income
|
(28,862) | (25,002) | 61.3 | (20,373) | 41.7 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total |
$ | 20,057,798 | 19,711,610 | 7.0 | % | 19,541,690 | 2.6 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) Percentage change is annualized.
(2) Small Business loans are reported within Commercial, Financial and Agricultural loans.
Synovus
CREDIT QUALITY DATA | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 4th Quarter | |||||||||||||||||||||||||||||
Fourth Quarter |
Third Quarter |
Second Quarter |
First Quarter |
Fourth Quarter |
13 vs. 12 Change |
|||||||||||||||||||||||||||
Non-performing Loans |
$ | 416,300 | 450,879 | 483,464 | 513,227 | 543,333 | (23.4) % | |||||||||||||||||||||||||
Other Loans Held for Sale (1) |
10,685 | 9,351 | 12,083 | 9,129 | 9,455 | 13.0 | ||||||||||||||||||||||||||
Other Real Estate |
112,629 | 126,640 | 139,653 | 155,237 | 150,271 | (25.0) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Non-performing Assets |
539,614 | 586,870 | 635,200 | 677,592 | 703,059 | (23.2) | ||||||||||||||||||||||||||
Allowance for Loan Losses |
307,560 | 318,612 | 334,880 | 351,772 | 373,405 | (17.6) | ||||||||||||||||||||||||||
Net Charge-Offs - Quarter |
25,116 | 23,030 | 29,969 | 57,328 | 193,525 | (87.0) | ||||||||||||||||||||||||||
Net Charge-Offs / Average Loans - Quarter (2) |
0.51 | % | 0.47 | 0.61 | 1.18 | 3.94 | ||||||||||||||||||||||||||
Non-performing Loans / Loans |
2.08 | 2.29 | 2.47 | 2.65 | 2.78 | |||||||||||||||||||||||||||
Non-performing Assets / Loans, Other Loans Held for Sale & ORE |
2.67 | 2.96 | 3.21 | 3.47 | 3.57 | |||||||||||||||||||||||||||
Allowance / Loans |
1.53 | 1.62 | 1.71 | 1.82 | 1.91 | |||||||||||||||||||||||||||
Allowance / Non-performing Loans |
73.88 | 70.66 | 69.27 | 68.54 | 68.72 | |||||||||||||||||||||||||||
Allowance / Non-performing Loans (3) |
95.43 | 91.84 | 91.76 | 97.75 | 93.49 | |||||||||||||||||||||||||||
Past Due Loans over 90 days and Still Accruing |
$ | 4,489 | 4,738 | 4,596 | 5,799 | 6,811 | (34.1) % | |||||||||||||||||||||||||
As a Percentage of Loans Outstanding |
0.02 | % | 0.02 | 0.02 | 0.03 | 0.03 | ||||||||||||||||||||||||||
Total Past Dues Loans and Still Accruing |
$ | 72,600 | 78,906 | 80,678 | 88,330 | 104,825 | (30.7) | |||||||||||||||||||||||||
As a Percentage of Loans Outstanding |
0.36 | % | 0.40 | 0.41 | 0.46 | 0.54 | ||||||||||||||||||||||||||
Accruing troubled debt restructurings (TDRs) |
$ | 556,410 | 574,236 | 635,125 | 623,900 | 673,383 | (17.4) | |||||||||||||||||||||||||
(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) |
|
|
||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||
Tier 1 Capital |
$ | 2,351,493 | 2,832,244 | |||||||||||||||||||||||||||||
Total Risk-Based Capital |
2,900,823 | 3,460,998 | ||||||||||||||||||||||||||||||
Tier 1 Capital Ratio |
10.54 | % | 13.24 | |||||||||||||||||||||||||||||
Tier 1 Common Equity Ratio |
9.93 | 8.72 | ||||||||||||||||||||||||||||||
Total Risk-Based Capital Ratio |
13.00 | 16.18 | ||||||||||||||||||||||||||||||
Tier 1 Leverage Ratio |
9.13 | 11.00 | ||||||||||||||||||||||||||||||
Common Equity as a Percentage of Total Assets (2) |
10.77 | 9.76 | ||||||||||||||||||||||||||||||
Tangible Common Equity as a Percentage of Tangible Assets (3) |
10.68 | 9.66 | ||||||||||||||||||||||||||||||
Tangible Common Equity as a Percentage of Risk Weighted Assets (3) |
12.53 | 12.07 | ||||||||||||||||||||||||||||||
Book Value Per Common Share (4) |
2.90 | 2.99 | ||||||||||||||||||||||||||||||
Tangible Book Value Per Common Share (3) |
2.87 | 2.95 | ||||||||||||||||||||||||||||||
(1) Current quarter regulatory capital information is preliminary. |
| |||||||||||||||||||||||||||||||
(2) Common equity consists of Total Shareholders Equity less 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 Preferred Stock divided by total common shares outstanding. |
|
![]() Exhibit 99.3 |
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