Synovus Reports 15.8% Increase in Net Income for First Quarter 2004; Financial Services Segment Fuels Net Income Growth.Business Editors COLUMBUS Columbus. 1 City (1990 pop. 178,681), seat of Muscogee co., W Ga., at the head of navigation on the Chattahoochee River; settled and inc. 1828 on the site of a Creek village. , Ga.--(BUSINESS WIRE)--April 19, 2004 Synovus' (NYSE NYSE See: New York Stock Exchange :SNV SNV Synovus Financial Corp. (stock symbol) SNV Schweizerische Normenvereinigung (Swiss standards body) SNV Stichting Nederlandse Vrijwilligers (Netherlands Development Organization) ) first quarter earnings grew 15.8% over the first quarter 2003 to $104.2 million, which represented earnings per share growth of 14.7% to $.34 per share, Synovus' Chief Executive Officer James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. H. Blanchard Blanchard may refer to: People
"We started 2004 with the Synovus Synovus NYSE: SNV is a diversified financial services holding company with more than $31 billion in assets based in Columbus, Georgia. Synovus provides integrated financial services including banking, financial management, insurance, mortgage and leasing services through 40 Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. segment providing the key drivers for an impressive first quarter," said Blanchard. "Excellent credit quality, strong loan growth and a stable margin led the earnings momentum in the quarter. TSYS' performance exceeded internal expectations that were established at the beginning of the year." Return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). for the quarter was 1.91% and return on equity was 18.0% for the first quarter 2004, compared to 1.89% and 17.26%, respectively, in the same period last year. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. at March 31, 2004, was $2.36 billion, which represented a very strong 10.58% of quarter-end assets. Total assets ended the quarter at $22.3 billion, an increase of 8.2% from the same period last year. Asset quality improved significantly again during the first quarter, continuing the positive trend from the fourth quarter of last year. The net charge-off Eliminate or write off. The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless. ratio was 0.16% compared to 0.43% last quarter and 0.37% for the first quarter of last year. The ratio of nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. to loans and other real estate decreased to 0.56% from 0.58% last quarter, and 0.72% a year ago. The allowance for loan losses was 1.39% of loans, which provides coverage of 337% of nonperforming loans and the provision for loan losses covered net charge-offs by 2.32x for the quarter. Net interest income grew 11.7% over last year as average outstanding loans grew 12.6% and interest expense decreased by 14.4%. Net interest income increased by $5.3 million compared to the fourth quarter of 2003. The first quarter net interest margin was 4.24%, stable when compared to 4.26% last quarter. Net income for the Synovus Financial Services segment increased 21.1% over last year. Return on assets for the quarter was 1.49% and return on equity was 18.18%, compared to 1.40% and 16.14%, respectively, in the same period last year. Financial Services' non-interest income was up 22% as compared to last year, with increases in service charges on deposits of 15% and credit card fees of 6%. Mortgage banking revenue was down 56% compared to last year as the re-financing of mortgages has essentially stopped during the last two quarters. Financial Management Services and insurance revenues increased 12.1% over last year, with fees for trust services up 22% and brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. revenue up 17%. Synovus continued its strategy of redeployment re·de·ploy tr.v. re·de·ployed, re·de·ploy·ing, re·de·ploys 1. To move (military forces) from one combat zone to another. 2. of its capital and resources to higher growth markets. In the first quarter, a $9.7 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gain was recorded with the sale of banking operations in Quincy, Florida Quincy is a city in Gadsden County, Florida, United States. The population was 6,982 at the 2000 census. As of 2004, the population recorded by the U.S. Census Bureau is 6,975 [1]. It is the county seat of Gadsden CountyGR6. . Additionally, Synovus continued to invest in the final stages of its first de novo [Latin, Anew.] A second time; afresh. A trial or a hearing that is ordered by an appellate court that has reviewed the record of a hearing in a lower court and sent the matter back to the original court for a new trial, as if it had not been previously heard nor decided. bank - Synovus Bank of Jacksonville, Florida “Jacksonville” redirects here. For other uses, see Jacksonville (disambiguation). Jacksonville is the largest city in the state of Florida and the county seat of Duval County. - to be opened in the second quarter and entered a new market in Savannah, Georgia Savannah is a city located in (and the county seat of) Chatham County, Georgia (USA). The city's population was 128,500 in 2005, according to the most recent U.S. Census estimate. Savannah was the first colonial and state capital of Georgia. , with the opening of the Sea Island Bank branch in Savannah Savannah, city, United States Savannah, city (1990 pop. 137,560), seat of Chatham co., SE Ga., a port of entry on the Savannah River near its mouth; inc. 1789. during the first quarter. TSYS TSYS Total System Services, Inc. reported net income of $32.6 million for the first quarter 2004 compared to $31.7 million last year. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the quarter increased to $0.17, up from $0.16 last year. During the quarter, TSYS reached an agreement with FleetBoston Financial FleetBoston Financial was a Boston, Massachusetts-based bank created in 1999 by the merger of Fleet Financial Group and BankBoston. In 2004 it merged with Bank of America; all of its banks and branches were given the Bank of America logo. Corporation to continue processing the Circuit City accounts that Fleet acquired last year, expanding services to include back-office and call center activities. TSYS also extended its processing agreements with BB&T Corporation and First Hawaiian Hawaiian, member of the Polynesian group of the Austronesian family of languages. Of the fewer than 10,000 people who speak Hawaiian, only a few hundred are native speakers, but the language is taught in some Hawaiian schools and remains important as a symbol of Bank during the quarter. TSYS continues to have ongoing discussions with Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. regarding the Fleet merger and with Citigroup Citigroup U.S. holding company formed in 1998 from the merger of Citicorp (itself a holding company incorporated in 1967) and Travelers Group, Inc. The $70 billion merger included one of the largest U.S. investment banks, Salomon Smith Barney Inc. regarding its Sears portfolio acquisition. In addition, TSYS' plans and efforts to convert the Bank One portfolio remain fully staffed and on schedule, and TSYS has begun discussions with J.P. Morgan Morgan, American family of financiers and philanthropists. Junius Spencer Morgan, 1813–90, b. West Springfield, Mass., prospered at investment banking. Chase regarding the processing needs of its card portfolio. Blanchard concluded, "The first quarter performance is a confirmation of our expectations of earnings per share growth of 8 - 10% for 2004. Improving credit quality, a stable margin, continued strong loan growth, fee income growth, and continuing expense control encourage us to believe the Financial Services segment will perform at the very top of the peer group. Our optimism Optimism See also Hope. Bontemps, Roger personification of cheery contentment. [Fr. Lit.: “Roger Bontemps” in Walsh Modern, 66] Candide beset by inconceivable misfortunes, hero indifferently shrugs them off. [Fr. for TSYS to win strategically from the ongoing credit card industry consolidations remains high. With our very dedicated and highly motivated mo·ti·vate tr.v. mo·ti·vat·ed, mo·ti·vat·ing, mo·ti·vates To provide with an incentive; move to action; impel. mo team members and our strong balance sheet, we believe we are in position to achieve higher earnings performance as the economy improves throughout the year and beyond." Synovus will host an earnings highlights conference call at 4:00 pm ET, on April 19, 2004. The conference call will be available in the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of www.synovus.com under the "Conference Calls and Webcasts" tab. Please log on 5-10 minutes ahead of the call time. Synovus (NYSE: SNV) is a diversified financial The diversified financial services segment includes a range of consumer and commercially-oriented companies offering a wide variety of products and services, including various lending products (such as home equity loans and credit cards), insurance, and securities and investment services holding company with more than $22 billion in assets based in Columbus, Ga. Synovus provides integrated financial services including banking, financial management, insurance, mortgage and leasing services through 40 affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. banks and other Synovus offices in Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. , Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). , South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. , Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and and Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. ; and electronic payment processing through an 81-percent stake in TSYS (NYSE: TSS See ITU. ), the world's largest third-party processor of international payments. In 2004, FORTUNE magazine named Synovus as one of "America's Most Admired Companies A yearly publication by Fortune Magazine, America's Most Admired Companies consists of corporations that are highly esteemed by the likes of Business Executives, Directors, and Analysts. A survey is taken of close to 3300 professionals who give their opinions on the companies. " and also ranked Synovus No. 20 on its list of "The 100 Best Companies To Work For". See Synovus on the Web at www.synovus.com. This press release contains statements that constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements include, among others, statements regarding TSYS' plans to convert the Bank One portfolio according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. schedule, Synovus' expected growth in earnings per share for 2004, Synovus' belief with respect to Financial Services performing at the top of its peer group, Synovus' belief with respect to achieving higher earnings performance, and the assumptions underlying such statements, including, with respect to Synovus' expected increase in earnings per share for 2004, continued improvement in credit quality, resulting in a net charge-off ratio of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 0.30% for the year and a non-performing assets ratio in the 0.45-0.55% range by year end; a stable net interest margin in a flat rate environment; loan growth of 10-12% in 2004; and TSYS' net income growth for 2004 within the 5-7% range. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. A number of important factors could cause actual results to differ materially from those contemplated by the forward-looking statements in this press release. Many of these factors are beyond Synovus' ability to control or predict. These factors include, but are not limited to, competitive pressures arising from aggressive competition from other lenders; factors that affect the delinquency delinquency Criminal behaviour carried out by a juvenile. Young males make up the bulk of the delinquent population (about 80% in the U.S.) in all countries in which the behaviour is reported. rate on Synovus' loans and the rate at which Synovus' loans are charged off; changes in the cost and availability of funding due to changes in the deposit market and credit market, or the way in which Synovus is perceived per·ceive tr.v. per·ceived, per·ceiv·ing, per·ceives 1. To become aware of directly through any of the senses, especially sight or hearing. 2. To achieve understanding of; apprehend. in such markets; inflation, interest rate, market and monetary fluctuations; TSYS' earnings per share growth is lower that anticipated; TSYS does not convert the Bank One portfolio as anticipated; the strength of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. economy in general and the strength of the local economies in which Synovus conducts operations may be different than expected; the timely development of competitive new products and services and the acceptance of such by customers; Synovus' inability to control expenses; a deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in credit quality or a reduced demand for credit; the costs and effects of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. or adverse facts and developments related thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. ; hostilities hos·til·i·ty n. pl. hos·til·i·ties 1. The state of being hostile; antagonism or enmity. See Synonyms at enmity. 2. a. A hostile act. b. hostilities Acts of war; overt warfare. increase in the Middle East or elsewhere; and the effects of changes in government policy and regulations, including restrictions and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. limitations arising from banking laws, regulations and examinations. Additional factors that could cause actual results to differ materially from those contemplated in this press release can be found in Synovus' filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , quarterly reports on Form 10-Q Form 10-Q See 10-Q. and current reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 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.
Synovus
INCOME STATEMENT
(In thousands,
except per share data) 1st
2004 2003 Quarter
----------------------------------------------------
First Fourth Third Second First '04 vs. '03
Quarter Quarter Quarter Quarter Quarter Change
----------------------------------------------------
Interest Income
(Taxable
Equivalent) $271,491 266,581 268,079 272,595 261,627 3.8 %
Interest Expense 66,944 67,314 73,135 79,805 78,174 (14.4)
-------- -------- -------- -------- -------- --------
Net Interest
Income (Taxable
Equivalent) 204,547 199,267 194,944 192,790 183,453 11.5
Tax Equivalent
Adjustment 1,800 1,836 1,831 1,853 1,870 (3.7)
-------- -------- -------- -------- -------- --------
Net Interest
Income 202,747 197,431 193,113 190,937 181,583 11.7
Provision for
Loan Losses 15,724 19,800 15,108 16,565 20,304 (22.6)
-------- -------- -------- -------- -------- --------
Net Interest
Income After
Provision 187,023 177,631 178,005 174,372 161,279 16.0
-------- -------- -------- -------- -------- --------
Non-Interest
Income:
Electronic
Payment
Processing
Services 184,800 182,806 177,580 175,698 166,628 10.9
Other
Transaction
Processing
Services
Revenue 38,998 37,060 30,927 25,755 25,053 55.7
Service
Charges on
Deposits 28,432 29,527 26,710 26,484 24,683 15.2
Fees For
Trust
Services 8,091 8,084 7,189 8,084 6,652 21.6
Brokerage
Revenue 5,759 5,353 5,338 4,833 4,937 16.6
Mortgage
Banking
Income 6,894 6,642 18,021 18,282 15,688 (56.1)
Credit Card
Fees 6,040 6,927 7,110 6,297 5,710 5.8
Securities
Gains
(Losses) (65) 1,155 755 521 60 N/A
Other Fee
Income 6,920 6,347 6,039 5,571 5,725 20.9
Other Non-
Interest
Income 30,776 15,376 11,776 15,136 11,645 164.3
-------- -------- -------- -------- -------- --------
Non-Interest
Income before
Reimbursable
Items 316,645 299,277 291,445 286,661 266,781 18.7
Reimbursable
Items 60,445 56,313 55,740 54,638 58,474 3.4
-------- -------- -------- -------- -------- --------
Total Non-
Interest Income 377,090 355,590 347,185 341,299 325,255 15.9
-------- -------- -------- -------- -------- --------
Non-Interest
Expense:
Personnel
Expense 186,631 167,157 171,525 174,925 158,641 17.6
Occupancy &
Equipment
Expense 78,390 72,816 70,289 69,046 69,537 12.7
Other Non-
Interest
Expense 67,857 68,504 63,134 58,065 53,339 27.2
-------- -------- -------- -------- -------- --------
Non-Interest
Expense before
Reimbursable
Items 332,878 308,477 304,948 302,036 281,517 18.2
Reimbursable
Items 60,445 56,313 55,740 54,638 58,474 3.4
-------- -------- -------- -------- -------- --------
Total Non-
Interest Expense 393,323 364,790 360,688 356,674 339,991 15.7
-------- -------- -------- -------- -------- --------
Minority Interest
in Consolidated
Subsidiaries 6,249 7,519 6,780 6,529 6,144 1.7
Income Before
Taxes 164,541 160,912 157,722 152,468 140,399 17.2
Income Tax
Expense 60,379 58,273 57,722 56,101 50,480 19.6
-------- -------- -------- -------- -------- --------
Net Income $104,162 102,639 100,000 96,367 89,919 15.8
======== ======== ======== ======== ======== ========
Basic Earnings
Per Share 0.34 0.34 0.33 0.32 0.30 15.2
Diluted Earnings
Per Share 0.34 0.34 0.33 0.32 0.30 14.7
Dividends
Declared Per
Share 0.17 0.17 0.17 0.17 0.17 5.0
Return on Assets 1.91 % 1.94 % 1.91 1.88 1.89 2 bp
Return on Equity 18.00 18.37 18.32 17.81 17.26 74
Average Shares
Outstanding -
Basic 303,644 301,842 301,366 302,776 302,067 0.5 %
Average Shares
Outstanding -
Diluted 306,812 306,160 304,514 305,015 304,002 0.9
bp - change is measured as difference in basis points.
Synovus
Financial Services Segment
INCOME STATEMENT
(In thousands) 1st
2004 2003 Quarter
----------------------------------------------------
First Fourth Third Second First '04 vs. '03
Quarter Quarter Quarter Quarter Quarter Change
----------------------------------------------------
Interest Income
(Taxable
Equivalent) $271,486 266,577 268,093 272,598 261,622 3.8 %
Interest Expense 67,090 67,340 73,175 80,050 78,502 (14.5)
------- ------- ------- ------- ------- -------
Net Interest
Income (Taxable
Equivalent) 204,396 199,237 194,918 192,548 183,120 11.6
Tax Equivalent
Adjustment 1,796 1,831 1,826 1,846 1,865 (3.7)
------- ------- ------- ------- ------- -------
Net Interest
Income 202,600 197,406 193,092 190,702 181,255 11.8
Provision for
Loan Losses 15,724 19,800 15,108 16,565 20,304 (22.6)
------- ------- ------- ------- ------- -------
Net Interest
Income After
Provision 186,876 177,606 177,984 174,137 160,951 16.1
------- ------- ------- ------- ------- -------
Non-Interest
Income:
Service
Charges on
Deposits 28,432 29,527 26,710 26,484 24,683 15.2
Fees For
Trust
Services 8,232 8,219 7,322 8,144 6,871 19.8
Brokerage
Revenue 5,759 5,353 5,338 4,833 4,937 16.6
Mortgage
Banking
Income 6,894 6,642 18,021 18,282 15,688 (56.1)
Credit Card
Fees 6,040 6,927 7,110 6,297 5,710 5.8
Securities
Gains
(Losses) (65) 1,155 755 521 60 N/A
Other Fee
Income 6,920 6,347 6,039 5,571 5,725 20.9
Other Non-
Interest
Income 28,238 11,875 9,766 9,757 10,354 172.7
------- ------- ------- ------- ------- -------
Total Non-
Interest Income 90,450 76,045 81,061 79,889 74,028 22.2
------- ------- ------- ------- ------- -------
Non-Interest
Expense:
Personnel
Expense 96,999 80,346 88,894 89,883 81,096 19.6
Occupancy &
Equipment
Expense 19,691 20,041 19,244 18,640 17,916 9.9
Other Non-
Interest
Expense 39,254 44,065 39,426 39,064 36,792 6.7
------- ------- ------- ------- ------- -------
Total Non-
Interest Expense 155,944 144,452 147,564 147,587 135,804 14.8
------- ------- ------- ------- ------- -------
Income Before
Taxes 121,382 109,199 111,481 106,439 99,175 22.4
Income Tax
Expense 43,625 38,536 40,214 37,993 34,965 24.8
------- ------- ------- ------- ------- -------
Net Income $ 77,757 70,663 71,267 68,446 64,210 21.1
======= ======= ======= ====== ======= =======
Return on Assets 1.49 % 1.39 % 1.42 1.39 1.40 9 bp
Return on Equity 18.18 17.07 17.44 16.61 16.14 204
bp - change is measured as difference in basis points.
Synovus
----------- ----------- -----------
BALANCE SHEET March 31, December 31, March 31,
2004 2003 2003
----------- ----------- -----------
(In thousands, except share data)
ASSETS
Cash and due from banks $ 622,896 696,030 745,517
Interest earning deposits with
banks 4,124 4,423 4,457
Federal funds sold and securities
purchased
under resale agreements 154,859 172,922 189,661
Mortgage loans held for sale 152,672 133,306 378,900
Investment securities available
for sale 2,621,576 2,529,257 2,307,736
Loans, net of unearned income 17,012,828 16,464,914 15,551,328
Allowance for loan losses (236,056) (226,059) (216,989)
----------- ----------- -----------
Loans, net 16,776,772 16,238,855 15,334,339
----------- ----------- -----------
Premises and equipment, net 849,266 791,439 656,507
Contract acquisition costs and
computer software, net 376,002 383,562 330,448
Goodwill, net 248,868 248,868 99,108
Other intangible assets, net 32,474 33,970 16,129
Other assets(1) 466,838 399,997 540,999
----------- ----------- -----------
Total assets $22,286,347 21,632,629 20,603,801
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing $ 2,957,681 2,833,567 2,514,136
Interest bearing 13,256,627 13,108,042 12,699,956
----------- ----------- -----------
Total deposits 16,214,308 15,941,609 15,214,092
Federal funds purchased and
securities sold
under repurchase agreements 1,503,133 1,354,887 966,683
Long-term debt 1,641,856 1,575,777 1,730,594
Billings in excess of cost on
uncompleted contracts 10,824 17,573 29,722
Other liabilities 409,959 355,906 360,072
----------- ----------- -----------
Total liabilities 19,780,080 19,245,752 18,301,163
----------- ----------- -----------
Minority interest in consolidated
subsidiaries 147,843 141,838 122,372
Shareholders' equity:
Common stock, par value $1.00 a
share (2) 310,094 307,748 305,347
Surplus 494,670 442,931 406,494
Treasury stock (3) (113,940) (113,940) (1,285)
Unearned compensation (226) (266) (132)
Accumulated other comprehensive
income 37,418 29,509 40,413
Retained earnings 1,630,408 1,579,057 1,429,429
----------- ----------- -----------
Total shareholders' equity 2,358,424 2,245,039 2,180,266
----------- ----------- -----------
Total liabilities and
shareholders' equity $22,286,347 21,632,629 20,603,801
=========== =========== ===========
(1) On January 30, 2004, Synovus completed the acquisition of Peoples
Florida Banking Corporation. Included in other assets at March 31,
2004 is the excess of the purchase price over the recorded net
assets of this entity at the date of acquisition. Such excess
aggregates approximately $58.0 million. Synovus has not yet
completed the allocation of the purchase price of this entity to
the respective assets acquired and liabilities assumed. It is
expected that such purchase price allocation will be completed in
the second quarter and result in the majority of the excess
purchase price being recorded as goodwill.
(2) Common shares outstanding: 304,436,069; 302,090,128; and
305,171,464 at March 31, 2004, December 31, 2003, and March 31,
2003, respectively.
(3) Treasury shares: 5,658,005 at March 31, 2004, 5,658,005 at
December 31, 2003, and 175,264 at March 31, 2003.
Synovus
AVERAGE BALANCES AND YIELDS/RATES
(Dollars in thousands)
2004 2003
---------------------------------------------------------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
---------------------------------------------------------
Interest Earning
Assets
----------------
Taxable
Investment
Securities $ 2,319,280 2,200,668 2,067,538 2,042,255 1,950,469
Yield 3.86 % 3.74 3.73 4.15 4.66
Tax-Exempt
Investment
Securities $ 229,905 233,425 233,198 239,136 235,895
Yield 7.14 % 7.11 7.13 7.11 7.40
Commercial
Loans $13,991,230 13,346,751 13,081,909 12,934,397 12,201,561
Yield 5.67 % 5.73 5.84 6.03 6.09
Consumer
Loans $ 1,003,595 1,037,283 1,068,485 1,102,649 1,122,468
Yield 8.03 % 8.08 8.29 8.43 8.37
Mortgage
Loans $ 823,625 819,412 810,525 809,684 806,323
Yield 6.01 % 6.10 6.21 6.39 6.55
Credit Card
Loans $ 241,415 239,433 229,271 228,463 234,667
Yield 9.28 % 8.69 9.04 9.17 9.22
Home Equity
Loans $ 719,915 674,264 619,826 586,162 535,960
Yield 4.50 % 4.52 4.58 4.76 4.81
Allowance for
Loan Losses $ (231,822) (225,021) (224,360) (221,595) (208,816)
--------------------------------------------------------
Loans, Net $16,547,958 15,892,122 15,585,656 15,439,760 14,692,163
Yield 5.91 % 5.98 6.10 6.30 6.38
Mortgage
Loans Held
for Sale $ 105,557 136,133 343,069 308,262 229,545
Yield 5.33 % 5.43 5.04 5.19 5.57
Federal Funds
Sold $ 171,284 113,728 109,652 126,033 98,009
Yield 1.10 % 1.14 1.31 1.40 1.65
Time Deposits
with Banks $ 4,372 4,426 4,500 4,492 4,642
Yield 0.46 % 0.46 0.47 0.62 0.70
----------------------------------------------------------------------
Total
Interest
Earning
Assets $19,378,354 18,580,502 18,343,613 18,159,938 17,210,723
Yield 5.63 % 5.70 5.80 6.02 6.15
----------------------------------------------------------------------
Interest Bearing
Liabilities
-------------
Time Deposits
Over
$100,000 $ 3,628,357 3,446,050 3,471,693 3,553,764 3,322,485
Rate 2.29 % 2.46 2.67 2.82 2.99
Time Deposits
Under
$100,000 $ 2,266,593 2,311,870 2,407,719 2,481,680 2,397,058
Rate 2.28 % 2.35 2.51 2.70 2.97
Other
Interest
Bearing
Deposits $ 7,323,415 7,112,385 6,873,110 6,679,868 6,174,605
Rate 0.80 % 0.79 0.80 0.99 1.03
Federal Funds
Purchased
and Other
Short-Term
Borrowings $ 1,495,333 1,176,709 1,020,042 987,860 1,221,637
Rate 0.98 % 0.95 0.97 1.13 1.23
Long-Term
Debt $ 1,635,648 1,576,346 1,698,311 1,770,532 1,511,398
Rate 3.71 % 3.79 4.17 4.23 4.43
----------------------------------------------------------------------
Total
Interest
Bearing
Liabilities $16,349,345 15,623,360 15,470,875 15,473,704 14,627,183
Rate 1.64 % 1.71 1.87 2.06 2.16
----------------------------------------------------------------------
Non-Interest
Bearing
Demand
Deposits $ 2,769,367 2,715,015 2,669,500 2,435,395 2,178,503
Shareholders'
Equity $ 2,327,319 2,216,818 2,165,657 2,170,881 2,112,620
Total Assets $21,913,168 21,028,492 20,760,836 20,513,161 19,326,396
----------------------------------------------------------------------
Spread 3.99 % 3.99 3.93 3.95 3.99
Net Interest
Margin 4.24 % 4.26 4.22 4.25 4.31
Synovus
LOANS OUTSTANDING AND NONPERFORMING LOANS COMPOSITION
(Dollars in thousands)
March 31, 2004
---------------------------------------------------
Loans as a % Nonperforming
of Total Total Loans as a % of
Loans Nonperforming Total Nonper-
Loan Type Total Loans Outstanding Loans forming Loans
------------------ ---------------------------------------------------
Commercial Real Estate
Multi-Family $ 559,342 3.3 % $ 863 1.2 %
Hotels 769,834 4.5 7,903 11.3
Office
Buildings 652,866 3.8 1,305 1.9
Shopping
Centers 505,278 3.0 807 1.2
Commercial
Development 462,046 2.7 - -
---------- ---------- ---------- ----------
Total Investment
Properties 2,949,366 17.3 10,878 15.6
---------- ---------- ---------- ----------
1-4 Family
Construction 905,431 5.3 1,581 2.3
1-4 Family Perm
/ Mini-Perm 709,741 4.2 2,823 4.0
Residential
Development 774,940 4.6 1,129 1.6
---------- ---------- ---------- ----------
Total 1-4 Family
Properties 2,390,112 14.1 5,533 7.9
Land Acquisition 802,206 4.7 160 0.2
---------- ---------- ---------- ----------
Total Investment-Related
Real Estate 6,141,684 36.1 16,571 23.7
---------- ---------- ---------- ----------
Owner-Occupied 1,962,634 11.5 8,005 11.4
Other Property 1,469,086 8.6 1,941 2.8
---------- ---------- ---------- ----------
Total Commercial
Real Estate 9,573,404 56.2 26,517 37.9
Commercial &
Industrial 4,668,595 27.4 36,548 52.2
Consumer 2,803,938 16.5 6,942 9.9
Unearned Income (33,109) (0.2) - -
---------- ---------- ---------- ----------
Total $17,012,828 100.0 % $ 70,007 100.0 %
========== ========== ========== ==========
Synovus
CREDIT QUALITY DATA
(Dollars in thousands) 1st
2004 2003 Quarter
-------------------------------------------------------
First Fourth Third Second First '04 vs. '03
Quarter Quarter Quarter Quarter Quarter Change
-------------------------------------------------------
Nonperforming
Loans $ 70,007 67,442 93,633 86,440 79,718 (12.2) %
Other Real
Estate 26,061 28,422 22,842 29,709 31,991 (18.5)
Nonperforming
Assets 96,068 95,864 116,475 116,149 111,709 (14.0)
Allowance for
Loan Losses 236,056 226,059 223,461 220,978 216,989 8.8
Net Charge-
Offs -
Quarter 6,773 17,202 12,626 12,577 13,689 (50.5)
Net Charge-
Offs - YTD 6,773 56,093 38,891 26,266 13,689 (50.5)
Net Charge-
Offs /
Average Loans
- Quarter 0.16 0.43 0.32 0.32 0.37
Net Charge-
Offs /
Average Loans
- YTD 0.16 0.36 0.34 0.34 0.37
Nonperforming
Loans / Loans
& ORE 0.41 0.41 0.59 0.55 0.51
Nonperforming
Assets /
Loans & ORE 0.56 0.58 0.73 0.73 0.72
Allowance /
Loans 1.39 1.37 1.40 1.40 1.40
Allowance /
Nonperforming
Loans 337.19 335.19 238.66 255.64 272.20
Allowance /
Nonperforming
Assets 245.72 235.81 191.85 190.25 194.25
Past Due Loans
over 90 days 23,295 21,138 23,254 31,675 24,771
As a
Percentage of
Loans
Outstanding 0.14 0.13 0.15 0.20 0.16
Total Past
Dues 129,844 109,672 111,269 146,197 160,151
As a
Percentage of
Loans
Outstanding 0.76 0.67 0.70 0.92 1.03
----------------------------------------------------------------------
REGULATORY CAPITAL RATIOS (1)
(Dollars in thousands)
-------------------------------
March 31, December 31, March 31,
2004 2003 2003
-------------------------------
Tier 1 Capital$2,148,153 2,091,755 2,018,690
Total Risk-
Based Capital 2,684,209 2,617,814 2,535,679
Tier 1 Capital
Ratio 10.36 % 10.43 10.71
Total Risk-
Based Capital
Ratio 12.94 13.06 13.45
Leverage Ratio 9.97 10.09 10.59
(1) March 31, 2004 information is preliminary. As noted in footnote
(1) to the accompanying balance sheet, the purchase price
allocation related to the acquisition of Peoples Florida Banking
Corporation has not been completed. For purposes of the March 31,
2004 regulatory capital calculations, we have assumed that $58.0
million of the total purchase price will be allocated to
intangibles which will be disallowed for regulatory capital
purposes.
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