EX-99.2

EX-99.2 3 d211369dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

Synovus


INCOME STATEMENT DATA		Six Months Ended
(Unaudited)
(Dollars in thousands, except per share data)		June 30,
		2016			2015		Change

Interest income	$		501,716			465,055		7.9	%
Interest expense			62,073			58,148		6.8

Net interest income			439,643			406,907		8.0
Provision for loan losses			16,070			11,034		45.6

Net interest income after provision for loan losses			423,573			395,873		7.0

Non-interest income:
Service charges on deposit accounts			39,950			38,928		2.6
Fiduciary and asset management fees			22,854			23,414		(2.4)
Brokerage revenue			13,821			14,032		(1.5)
Mortgage banking income			11,425			13,995		(18.4)
Bankcard fees			16,718			16,576		0.9
Investment securities gains, net			67			2,710		(97.5)
Other fee income			10,084			9,851		2.4
Other non-interest income			16,114			15,181		6.1

Total non-interest income			131,033			134,687		(2.7)


Non-interest expense:
Salaries and other personnel expense			198,419			191,054		3.9
Net occupancy and equipment expense			53,360			52,713		1.2
Third-party processing expense			22,814			21,015		8.6
FDIC insurance and other regulatory fees			13,344			13,725		(2.8)
Professional fees			13,307			12,011		10.8
Advertising expense			9,761			6,309		54.7
Foreclosed real estate expense, net			7,272			13,847		(47.5)
Visa indemnification charges			720			729		(1.2)
Loss on early extinguishment of debt			4,735			-		nm
Litigation contingency expense			2,700			4,400		(38.6)
Restructuring charges, net			6,981			(102)		nm
Other operating expenses			43,431			41,012		5.9

Total non-interest expense			376,844			356,713		5.6


Income before income taxes			177,762			173,847		2.3
Income tax expense			64,773			64,091		1.1

Net income			112,989			109,756		2.9
Dividends on preferred stock			5,119			5,119		-


Net income available to common shareholders	$		107,870			104,637		3.1	%


Net income per common share, basic	$		0.85			0.78		8.8	%

Net income per common share, diluted			0.85			0.78		9.5

Cash dividends declared per common share			0.24			0.20		20.0
Return on average assets			0.78	%		0.80		(2)	bps
Return on average common equity			7.66			7.27		39

Weighted average common shares outstanding, basic			126,164			133,935		(5.8)	%
Weighted average common shares outstanding, diluted			126,778			134,678		(5.9)

nm - not meaningful

bps - basis points

Synovus


INCOME STATEMENT DATA
(Unaudited)
(In thousands, except per share data)		2016					2015						2nd Quarter

		Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter		‘16 vs. ‘15 Change

Interest income	$		252,393			249,323		242,814		238,093		233,654		8.0	%
Interest expense			30,944			31,130		30,194		30,303		30,010		3.1


Net interest income			221,449			218,193		212,620		207,790		203,644		8.7
Provision for loan losses			6,693			9,377		5,021		2,956		6,636		0.9


Net interest income after provision for loan losses			214,756			208,816		207,599		204,834		197,008		9.0


Non-interest income:
Service charges on deposit accounts			20,240			19,710		20,522		20,692		19,795		2.2
Fiduciary and asset management fees			11,580			11,274		11,206		11,308		11,843		(2.2)
Brokerage revenue			7,338			6,483		6,877		6,946		6,782		8.2
Mortgage banking income			5,941			5,484		4,136		5,965		7,511		(20.9)
Bankcard fees			8,346			8,372		8,262		8,334		8,499		(1.8)
Investment securities gains, net			-			67		58		-		1,985		nm
Other fee income			5,280			4,804		5,798		5,521		4,605		14.7
Other non-interest income			9,161			6,953		9,316		8,293		7,812		17.3


Total non-interest income			67,886			63,147		66,175		67,059		68,832		(1.4)


Non-interest expense:
Salaries and other personnel expense			97,061			101,358		95,524		94,341		94,565		2.6
Net occupancy and equipment expense			26,783			26,577		27,816		26,937		26,541		0.9
Third-party processing expense			11,698			11,116		10,993		10,844		10,672		9.6
FDIC insurance and other regulatory fees			6,625			6,719		6,776		6,591		6,767		(2.1)
Professional fees			6,938			6,369		8,265		6,371		6,417		8.1
Advertising expense			7,351			2,410		3,680		5,488		2,865		156.6
Foreclosed real estate expense, net			4,588			2,684		4,454		4,503		4,351		5.4
Visa indemnification charges			360			360		371		363		354		1.7
Loss on early extinguishment of debt			-			4,735		1,533		-		-		nm
Litigation contingency/settlement expenses			-			2,700		710		-		4,400		nm
Restructuring charges, net			5,841			1,140		69		69		5		nm
Other operating expenses			21,366			22,065		22,842		22,400		20,869		2.4


Total non-interest expense			188,611			188,233		183,033		177,907		177,806		6.1


Income before income taxes			94,031			83,730		90,741		93,986		88,034		6.8
Income tax expense			33,574			31,199		32,343		36,058		32,242		4.1


Net income			60,457			52,531		58,398		57,928		55,792		8.4

Dividends on preferred stock			2,559			2,559		2,559		2,559		2,559		-


Net income available to common shareholders	$		57,898			49,972		55,839		55,369		53,233		8.8	%


Net income per common share, basic	$		0.46			0.39		0.43		0.42		0.40		15.6	%

Net income per common share, diluted			0.46			0.39		0.43		0.42		0.40		15.6

Cash dividends declared per common share			0.12			0.12		0.12		0.10		0.10		20.0

Return on average assets *			0.83	%		0.73		0.81		0.81		0.80		3	bps
Return on average common equity *			8.26			7.06		7.67		7.64		7.39		87

Weighted average common shares outstanding, basic			125,100			127,227		130,354		131,516		132,947		(5.9)	%
Weighted average common shares outstanding, diluted			125,699			127,857		131,197		132,297		133,625		(5.9)

nm - not meaningful

bps - basis points

* - ratios are annualized

Synovus



BALANCE SHEET DATA		June 30, 2016		December 31, 2015		June 30, 2015
(Unaudited)

(In thousands, except share data)

ASSETS
Cash and cash equivalents	$		377,334		367,092		360,832
Interest bearing funds with Federal Reserve Bank			904,406		829,887		1,289,205
Interest earning deposits with banks			24,541		17,387		18,694
Federal funds sold and securities purchased under resale agreements			77,685		69,819		72,487
Trading account assets, at fair value			1,001		5,097		11,973
Mortgage loans held for sale, at fair value			87,824		59,275		98,202
Investment securities available for sale, at fair value			3,580,359		3,587,818		3,354,673

Loans, net of deferred fees and costs			23,060,908		22,429,565		21,494,869
Allowance for loan losses			(255,076)		(252,496)		(254,702)

Loans, net			22,805,832		22,177,069		21,240,167


Premises and equipment, net			424,967		445,155		445,579
Goodwill			24,431		24,431		24,431
Other real estate			33,289		47,030		66,449
Deferred tax asset, net			425,160		511,948		571,402
Other assets			692,862		650,645		650,984


Total assets	$		29,459,691		28,792,653		28,205,078


LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Non-interest bearing deposits	$		6,934,443		6,732,970		6,421,815
Interest bearing deposits, excluding brokered deposits			15,495,318		15,434,171		14,775,216
Brokered deposits			1,496,161		1,075,520		1,452,150

Total deposits			23,925,922		23,242,661		22,649,181

Federal funds purchased and securities sold under repurchase agreements			247,179		177,025		188,285
Long-term debt			2,135,892		2,186,893		2,138,427
Other liabilities			199,039		185,878		223,028


Total liabilities			26,508,032		25,792,457		25,198,920


Shareholders’ equity:
Series C Preferred Stock - no par value, 5,200,000 shares outstanding at June 30, 2016, December 31, 2015, and June 30, 2015			125,980		125,980		125,980
Common stock - $1.00 par value. 124,047,659 shares outstanding at June 30, 2016, 129,547,032 shares outstanding at December 31, 2015 and 132,257,577 shares outstanding at June 30, 2015			141,008		140,592		140,425

Additional paid-in capital			2,993,985		2,989,981		2,981,434

Treasury stock, at cost - 16,959,977 shares at June 30, 2016, 11,045,377 shares at December 31, 2015, and 8,167,677 shares at June 30, 2015			(573,058)		(401,511)		(311,859)

Accumulated other comprehensive gain (loss)			11,005		(29,819)		(22,323)

Retained earnings			252,739		174,973		92,500


Total shareholders’ equity			2,951,659		3,000,196		3,006,157


Total liabilities and shareholders’ equity	$		29,459,691		28,792,653		28,205,078

Synovus


AVERAGE BALANCES AND YIELDS/RATES (1)
(Unaudited)
(Dollars in thousands)
		2016						2015
		Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Interest Earning Assets

Taxable investment securities ⁽²⁾	$		3,529,030			3,537,131			3,481,184			3,380,543			3,165,513
Yield			1.89	%		1.91			1.85			1.76			1.79

Tax-exempt investment securities ^{(2) (4)}	$		3,491			4,091			4,352			4,509			4,595
Yield (taxable equivalent)			6.08	%		6.37			6.16			6.21			6.15

Trading account assets	$		3,803			5,216			8,067			7,278			12,564
Yield			1.27	%		1.65			2.24			1.84			3.72

Commercial loans ^{(3) (4)}	$		18,433,638			18,253,169			17,884,661			17,522,735			17,297,130
Yield			4.04	%		4.03			3.97			3.99			4.01

Consumer loans ⁽³⁾	$		4,497,147			4,334,817			4,233,061			4,105,639			3,986,151
Yield			4.32	%		4.37			4.27			4.31			4.37

Allowance for loan losses	$		(251,101	)		(258,097	)		(252,049	)		(256,102	)		(254,177	)

Loans, net ⁽³⁾	$		22,679,684			22,329,889			21,865,673			21,372,272			21,029,104
Yield			4.15	%		4.15			4.08			4.10			4.14

Mortgage loans held for sale	$		72,477			63,339			50,668			69,438			90,419
Yield			3.59	%		3.72			3.84			3.82			3.39

Federal funds sold, due from Federal Reserve Bank, and other short-term investments	$		907,615			885,939			1,081,604			1,380,686			1,590,114
Yield			0.47	%		0.47			0.27			0.24			0.24

Federal Home Loan Bank and Federal Reserve Bank stock ⁽⁵⁾	$		77,571			80,679			66,790			71,852			76,091
Yield			5.15	%		3.82			5.08			4.71			4.57
Total interest earning assets	$		27,273,670			26,906,284			26,558,338			26,286,578			25,968,400
Yield			3.73	%		3.73			3.63			3.60			3.61

Interest Bearing Liabilities


Interest bearing demand deposits	$		4,233,310			4,198,738			4,117,116			3,955,803			3,919,401
Rate			0.18	%		0.17			0.17			0.18			0.18

Money market accounts	$		7,082,759			7,095,778			7,062,517			6,893,563			6,466,610
Rate			0.31	%		0.32			0.35			0.36			0.35

Savings deposits	$		746,225			722,172			692,536			685,813			675,260
Rate			0.06	%		0.07			0.06			0.06			0.06

Time deposits under $100,000	$		1,262,280			1,279,811			1,307,601			1,338,994			1,351,299
Rate			0.64	%		0.65			0.65			0.66			0.68

Time deposits over $100,000	$		2,016,116			2,006,302			2,033,193			2,086,851			2,061,434
Rate			0.89	%		0.89			0.88			0.88			0.88

Non maturing brokered deposits	$		451,398			315,006			297,925			221,817			185,909
Rate			0.39	%		0.48			0.31			0.31			0.31

Brokered time deposits	$		885,603			780,232			887,168			1,135,346			1,370,022
Rate			0.85	%		0.83			0.76			0.71			0.67

Total interest bearing deposits	$		16,677,691			16,398,039			16,398,056			16,318,187			16,029,935
Rate			0.39	%		0.39			0.40			0.42			0.42

Federal funds purchased and securities sold under repurchase agreements	$		221,276			177,921			158,810			207,894			232,531
Rate			0.09	%		0.10			0.08			0.09			0.08

Long-term debt	$		2,279,043			2,361,973			2,007,924			2,072,455			2,172,765
Rate			2.55	%		2.55			2.63			2.46			2.39

Total interest bearing liabilities	$		19,178,010			18,937,933			18,564,790			18,598,536			18,435,231
Rate			0.65	%		0.66			0.65			0.65			0.65

Non-interest bearing demand deposits	$		6,930,336			6,812,223			6,846,200			6,541,832			6,436,167

Effective cost of funds			0.46	%		0.46			0.45			0.46			0.46

Net interest margin			3.27	%		3.27			3.18			3.14			3.15

Taxable equivalent adjustment	$		329			305			311			315			330

(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 consolidated balance sheet

Synovus


LOANS OUTSTANDING AND NON-PERFORMING LOANS COMPOSITION
(Unaudited)
(Dollars in thousands)
		June 30, 2016
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	$		1,528,192		6.6	%	$		4,070				2.6	%
Hotels			746,397		3.2				5,052				3.3
Office Buildings			1,559,631		6.8				2,563				1.7
Shopping Centers			926,147		4.0				358				0.2
Warehouses			535,889		2.3				1,128				0.7
Other Investment Property			624,405		2.7				978				0.7

Total Investment Properties			5,920,661		25.6				14,149				9.2
1-4 Family Construction			208,871		0.9				304				0.2
1-4 Family Investment Mortgage			758,463		3.3				7,994				5.2
Residential Development			160,446		0.7				9,571				6.2

Total 1-4 Family Properties			1,127,780		4.9				17,869				11.6
Land Acquisition			459,254		2.0				7,610				4.9

Total Commercial Real Estate			7,507,695		32.5				39,628				25.7

Commercial, Financial, and Agricultural			6,596,835		28.5				55,821				36.2
Owner-Occupied			4,358,595		18.9				17,118				11.1

Total Commercial & Industrial			10,955,430		47.4				72,939				47.3

Home Equity Lines			1,657,109		7.2				16,912				11.0
Consumer Mortgages			2,132,114		9.2				21,895				14.2
Credit Cards			236,034		1.1				-				-
Other Retail Loans			600,153		2.6				2,698				1.8

Total Retail			4,625,410		20.1				41,505				27.0

Unearned Income			(27,627)		-				-				-

Total	$		23,060,908		100.0	%	$		154,072				100.0	%


LOANS OUTSTANDING BY TYPE COMPARISON
(Unaudited)
(Dollars in thousands)

Loan Type		Total Loans June 30, 2016		March 31, 2016				2Q16 vs. 1Q16 % change ⁽¹⁾				June 30, 2015			2Q16 vs. 2Q15 % change


Multi-Family	$		1,528,192		1,524,850				0.9	%	$		1,286,747			18.8	%
Hotels			746,397		718,640				15.5				663,286			12.5
Office Buildings			1,559,631		1,557,608				0.5				1,348,234			15.7
Shopping Centers			926,147		963,520				(15.6)				917,678			0.9
Warehouses			535,889		568,662				(23.2)				524,525			2.2
Other Investment Property			624,405		649,865				(15.8)				662,924			(5.8)


Total Investment Properties			5,920,661		5,983,145				(4.2)				5,403,394			9.6
1-4 Family Construction			208,871		211,312				(4.6)				163,866			27.5
1-4 Family Investment Mortgage			758,463		787,354				(14.8)				788,704			(3.8)
Residential Development			160,446		161,942				(3.7)				161,130			(0.4)

Total 1-4 Family Properties			1,127,780		1,160,608				(11.4)				1,113,700			1.3
Land Acquisition			459,254		469,882				(9.1)				554,501			(17.2)

Total Commercial Real Estate			7,507,695		7,613,635				(5.6)				7,071,595			6.2

Commercial, Financial, and Agricultural			6,596,835		6,537,253				3.7				6,243,259			5.7
Owner-Occupied			4,358,595		4,272,219				8.1				4,161,268			4.7

Total Commercial & Industrial			10,955,430		10,809,472				5.4				10,404,527			5.3

Home Equity Lines			1,657,109		1,669,406				(3.0)				1,683,651			(1.6)
Consumer Mortgages			2,132,114		1,970,193				33.1				1,793,752			18.9
Credit Cards			236,034		232,554				6.0				246,724			(4.3)
Other Retail Loans			600,153		492,274				88.1				323,741			85.4

Total Retail			4,625,410		4,364,427				24.1				4,047,868			14.3

Unearned Income			(27,627)		(29,331)				(23.4)				(29,121)			(5.1)


Total	$		23,060,908		22,758,203				5.3	%	$		21,494,869			7.3	%

(1) Percentage change is annualized.

Synovus


CREDIT QUALITY DATA (Unaudited)
(Dollars in thousands)		2016					2015						2nd Quarter
		Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter		‘16 vs. ‘15 Change

Non-performing Loans	$		154,072			178,167		168,370		157,640		173,638	(11.3) %
Other Real Estate			33,289			38,462		47,030		64,346		66,449	(49.9)

Non-performing Assets			187,361			216,629		215,400		221,986		240,087	(22.0)

Allowance for loan losses			255,076			254,516		252,496		250,900		254,702	0.1

Net Charge-Offs - Quarter			6,133			7,357		3,425		6,758		5,306	15.6
Net Charge-Offs / Average Loans - Quarter ⁽¹⁾			0.11	%		0.13		0.06		0.12		0.10

Non-performing Loans / Loans			0.67			0.78		0.75		0.72		0.81
Non-performing Assets / Loans, Other Loans Held for Sale & ORE			0.81			0.95		0.96		1.01		1.11
Allowance / Loans			1.11			1.12		1.13		1.15		1.18

Allowance / Non-performing Loans			165.56			142.85		149.96		159.16		146.69
Allowance / Non-performing Loans ⁽²⁾			195.25			173.64		189.47		205.90		202.08

Past Due Loans over 90 days and Still Accruing	$		5,964			3,214		2,621		2,998		4,832	23.4
As a Percentage of Loans Outstanding			0.03	%		0.01		0.01		0.01		0.02

Total Past Due Loans and Still Accruing	$		55,716			63,852		47,912		39,350		50,860	9.5
As a Percentage of Loans Outstanding			0.24	%		0.28		0.21		0.18		0.24

Accruing Troubled Debt Restructurings (TDRs)	$		205,165			209,159		223,873		240,370		268,542	(23.6)
(1) Ratio is annualized. (2) Excludes non-performing loans for which the expected loss has been charged off.
SELECTED CAPITAL INFORMATION⁽¹⁾
(Unaudited)
(Dollars in thousands)
		June 30, 2016			March 31, 2016		June 30, 2015
Tier 1 Capital	$		2,627,574			2,609,191		2,615,827
Total Risk-Based Capital			3,146,898			3,183,901		2,971,518
Common Equity Tier 1 Ratio (transitional)			10.02	%		10.04		10.73
Common Equity Tier 1 Ratio (fully phased-in)			9.49			9.47		10.09
Tier 1 Capital Ratio			10.06			10.04		10.73
Total Risk-Based Capital Ratio			12.05			12.25		12.18
Tier 1 Leverage Ratio			9.10			9.15		9.48
Common Equity as a Percentage of Total Assets⁽²⁾			9.59			9.69		10.21
Tangible Common Equity as a Percentage of Tangible Assets ⁽³⁾			9.52			9.62		10.13
Tangible Common Equity as a Percentage of Risk Weighted Assets ⁽³⁾			10.72			10.78		11.71
Book Value Per Common Share ⁽⁴⁾			22.78			22.47		21.78
Tangible Book Value Per Common Share⁽³⁾			22.58			22.27		21.59

(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.