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
October 21, 2014 (October 21, 2014)
Date of Report
(Date of
Earliest Event Reported)
Synovus Financial Corp.
(Exact Name of Registrant as Specified in its Charter)
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| Georgia |
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1-10312 |
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58-1134883 |
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(Commission File Number) |
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(IRS Employer Identification No.) |
1111 Bay Avenue, Suite 500, Columbus, Georgia 31901
(Address of principal executive offices) (Zip Code)
(706) 649-2311
(Registrant’s 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:
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¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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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 October 21, 2014, Synovus
Financial Corp. (the “Company”) issued a press release announcing the Company’s financial results for the three and nine month periods ended September 30, 2014.
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 nine month periods ended September 30, 2014 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 October 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 October 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.
2
On October 21, 2014, the Company announced that its Board of
Directors had approved a share repurchase program pursuant to which the Company may repurchase up to $250 million of its common stock, par value $1.00 per share, over the next twelve months.
| Item 9.01 |
Financial Statements and Exhibits |
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| Exhibit
No. |
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Description |
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| 99.1 |
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Synovus press release dated October 21, 2014 |
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| 99.2 |
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Supplemental Information prepared for use with the press release |
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| 99.3 |
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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.
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SYNOVUS FINANCIAL CORP. |
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(“Synovus”) |
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| Dated: October 21, 2014 |
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By: |
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/s/ Allan E. Kamensky |
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Allan E. Kamensky |
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Executive Vice President, General Counsel and Secretary |
4
Exhibit 99.1
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| Media Contact |
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Investor Contact |
| Greg Hudgison |
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Bob May |
| Media Relations |
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Investor Relations |
| (706) 644-0528 |
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(706) 649-3555 |
Synovus Announces Earnings for Third Quarter 2014, $250 Million Stock Repurchase Program,
and 43% Increase in Quarterly Common Stock Dividend
COLUMBUS, Ga., October 21, 2014 – Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended
September 30, 2014.
Third Quarter Highlights
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• |
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Net income available to common shareholders for the third quarter of 2014 was $44.2 million or $0.32 per diluted share as compared to $44.3 million, or $0.32 per diluted share for the second quarter of 2014.
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• |
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Net income available to common shareholders for the third quarter of 2014 was $51.3 million or $0.37 per diluted common share, excluding net litigation related expenses, restructuring charges, and Visa indemnification
charges totaling $7.0 million after-tax. |
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• |
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Total loans grew $132.8 million sequentially. |
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Credit quality continued to improve as the NPL ratio declined to 1.18% at September 30, 2014 from 1.27% at June 30, 2014 and 2.29% a year ago, and the annualized net charge-off ratio for the third quarter
declined to 0.24% and 0.41% year-to-date compared to 0.47% for the third quarter of 2013 and 0.75% for year-to-date 2013. |
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All Tier 1 capital ratios continued to expand with the Tier 1 common equity ratio ending the quarter at 10.60%, up 18 basis points from the prior quarter. |
“The announced stock repurchase program and common dividend increase from $0.07 to $0.10 per share reflect our strong capital position, significantly
improved risk profile, and earnings momentum,” said Kessel D. Stelling, Synovus Chairman and CEO. “These actions will provide increased returns to our broad shareholder base while still allowing us the flexibility needed to reinvest
in the business and continue our pursuit of growth opportunities. These opportunities include the acquisition of specialized talent that enables us to reach untapped customer segments, expansion into new business lines, and significant
investments in marketing and technology. Fundamentals such as expense management and credit quality remain high priorities as evidenced by our continued progress during the third quarter, but delivering exceptional customer service backed by
comprehensive financial solutions is the primary focus of our team’s efforts and energy day-to-day.”
Balance Sheet Fundamentals
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Total loans ended the quarter at $20.59 billion, an $877.0 million or 4.4% increase from the third quarter of 2013. |
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Total loans grew $132.8 million or 2.6% annualized compared to the second quarter of 2014. |
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Retail loans grew by $86.0 million, or 9.1% annualized. |
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Commercial real estate loans grew by $129.0 million or 7.7% annualized. |
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C&I loans declined by $82.4 million, or 3.2% annualized. |
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Total average deposits for the quarter were $20.94 billion, up $75.0 million or 1.4% annualized from the previous quarter. |
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Average core deposits for the quarter were $19.44 billion, down $18.6 million compared to the second quarter of 2014. |
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Average core deposits, excluding state, county, and municipal deposits, grew by $204.5 million or 4.7% annualized compared to the previous quarter. |
Core Performance
Adjusted pre-tax, pre-credit costs
income was $103.5 million for the third quarter of 2014, an increase of $4.6 million from $98.9 million for the second quarter of 2014.
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Net interest income was $206.3 million for the third quarter of 2014, up $1.2 million from $205.1 million in the previous quarter. |
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The net interest margin declined four basis points to 3.37% compared to 3.41% in the second quarter of 2014. The yield on earning assets was 3.81%, five basis points lower than the second quarter of 2014, and the
effective cost of funds declined one basis point to 0.44%. |
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Total non-interest income was $64.0 million, up $598 thousand compared to $63.4 million for the second quarter of 2014. |
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Core banking fees1 of $32.8 million were up $125 thousand, driven by a $921 thousand or 4.8% increase in service charges on deposits and a $513 thousand or 5.9%
decline in bankcard fees. |
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Financial Management Services revenues, consisting primarily of fiduciary and asset management fees and brokerage revenue, increased $382 thousand, driven by brokerage revenue growth. |
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Mortgage banking income decreased $618 thousand or 11.7%. |
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Mortgage originations totaled $197 million, up from $188 million in the prior quarter. |
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Decline in revenue was driven by lower gains on mortgage loan sales. |
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Total non-interest expense for the third quarter of 2014 was $193.7 million, up $11.6 million from the second quarter of 2014, primarily due to net litigation related expenses. Adjusted non-interest expense for the
third quarter of 2014 was $166.8 million, down $2.7 million or 1.6% compared to $169.5 million for the second quarter of 2014. |
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Employment expense was $93.9 million, up $1.3 million, primarily due to one more pay day in the quarter and merit increases. |
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Advertising expense was $7.2 million, an increase of $896 thousand. |
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Professional fees were $2.5 million, down $5.7 million, reflecting the benefit from a $3.6 million net insurance recovery for incurred legal fees related to litigation. |
| 1 |
Include service charges on deposit accounts, bankcard fees, letter of credit fees, ATM fee income, line of credit non-usage fees, and miscellaneous other service charges. |
Credit Quality
Broad-based improvement in credit quality continued.
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Total credit costs were $15.7 million in the third quarter of 2014, down 7.2% from $16.9 million in the second quarter of 2014 and down 29.8% from $22.4 million in the third quarter of 2013. |
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Non-performing loans, excluding loans held for sale, were $242.4 million at September 30, 2014, down $17.2 million or 6.6% from the previous quarter, and down $208.5 million or 46.2% from the third quarter of 2013.
The non-performing loan ratio was 1.18% at September 30, 2014, down from 1.27% at the end of the previous quarter and 2.29% at September 30, 2013. |
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Total non-performing assets were $324.4 million at September 30, 2014, down $38.8 million or 10.7% from the previous quarter, and down $262.5 million or 44.7% from the third quarter of 2013. The non-performing
asset ratio was 1.57% at September 30, 2014, compared to 1.77% at the end of the previous quarter and 2.96% at September 30, 2013. |
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Net charge-offs were $12.3 million in the third quarter of 2014, down $23.1 million or 65.4% from $35.4 million in the second quarter of 2014. The annualized net charge-off ratio was 0.24% in the third quarter, down
from 0.69% in the previous quarter and 0.47% in the third quarter of 2013. |
Capital Ratios
Capital ratios remained strong.
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Tier 1 Common Equity ratio was 10.60% at September 30, 2014, up from 10.42% at June 30, 2014. |
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Tier 1 Capital ratio was 11.19% at September 30, 2014, up from 11.01% at June 30, 2014. |
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Total Risk Based Capital ratio was 13.17% at September 30, 2014, up from 13.03% at June 30, 2014. |
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Tier 1 Leverage ratio was 9.85% at September 30, 2014, up from 9.69% at June 30, 2014. |
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Tangible Common Equity ratio was 11.04% at September 30, 2014, up from 10.91% at June 30, 2014. |
Capital Management
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The Board of Directors has authorized a share repurchase program of up to $250 million of the company’s common stock, to be executed over the next 12 months. |
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Additionally, the Board of Directors has approved an increase in the company’s quarterly common stock dividend from $0.07 to $0.10 per share, effective with the quarterly dividend payable in January 2015.
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Third Quarter Earnings Conference Call
Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on October 21, 2014. The earnings call will be accompanied by a slide
presentation. Shareholders and other interested parties may listen to this conference call via simultaneous Internet broadcast. For a link to the webcast, go to www.synovus.com/webcasts. You may download RealPlayer or Windows Media Player
(free download available) 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 $27 billion in assets. Synovus Financial Corp. provides commercial and retail banking, investment and mortgage services to customers through 28 locally branded divisions, 271
branches and 355 ATMs 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 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, expense initiatives, and future profitability; expectations regarding our capital management, including our announced share repurchase program, 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 press release. 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, 2013 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 average core deposits; average core deposits excluding average state, county, and municipal deposits; Tier 1 common equity ratio;
tangible common equity to tangible assets ratio; adjusted net income per common share, diluted; adjusted pre-tax, pre-credit cost 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 average deposits; Tier 1 capital to risk-weighted assets ratio; total shareholders’ equity to total assets ratio; net income
per common share, diluted; income 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 average deposits; Tier 1 capital to risk-weighted assets ratio; total shareholders’ equity to total assets ratio; net income per common share, diluted; income before income taxes; and 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 average core deposits;
average core deposits excluding average state, county, and municipal deposits; Tier 1 common equity ratio; tangible common equity to tangible assets ratio; adjusted net income per common share, diluted; adjusted pre-tax, pre-credit cost income; and
adjusted non-interest expense; and the reconciliation of these measures to total average deposits; Tier 1 capital to risk-weighted assets ratio; total shareholders’ equity to total assets ratio; net income per common share, diluted; income
before income taxes; and total non-interest expense are set forth in the tables below.
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)
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3Q14 |
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2Q14 |
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1Q14 |
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4Q13 |
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3Q13 |
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| Average Core Deposits |
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| Average Core Deposits Excluding State, County, and Municipal Deposits |
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| Average total deposits |
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$ |
20,938,587 |
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$ |
20,863,706 |
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$ |
20,725,259 |
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$ |
21,150,068 |
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$ |
20,878,768 |
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| Subtract: Average brokered deposits |
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(1,494,620 |
) |
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(1,401,167 |
) |
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(1,234,847 |
) |
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(1,194,427 |
) |
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(1,333,293 |
) |
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| Average core deposits |
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19,443,967 |
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19,462,539 |
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19,490,412 |
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19,955,641 |
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19,545,475 |
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| Subtract: Average state, county, and municipal deposits |
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(2,045,817 |
) |
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(2,268,852 |
) |
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(2,365,096 |
) |
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(2,354,731 |
) |
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(2,233,281 |
) |
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| Average core deposits excluding state, county, and municipal deposits |
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17,398,150 |
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17,193,687 |
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17,125,316 |
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17,600,910 |
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17,312,194 |
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Reconciliation of Non-GAAP Financial Measures (continued)
(dollars and shares in thousands)
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3Q14 |
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2Q14 |
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1Q14 |
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4Q13 |
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3Q13 |
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| Tier 1 Common Equity Ratio |
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| Total shareholders’ equity |
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$ |
3,076,545 |
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$ |
3,053,051 |
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$ |
2,998,496 |
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$ |
2,948,985 |
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$ |
2,931,860 |
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| Add: Accumulated other comprehensive loss |
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|
24,827 |
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13,716 |
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30,463 |
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41,258 |
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29,514 |
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| Subtract: Goodwill |
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(24,431 |
) |
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(24,431 |
) |
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(24,431 |
) |
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(24,431 |
) |
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|
(24,431 |
) |
| Subtract: Other intangible assets, net |
|
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(1,471 |
) |
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(1,678 |
) |
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(1,883 |
) |
|
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(3,415 |
) |
|
|
(3,783 |
) |
| Subtract: Disallowed deferred tax asset |
|
|
(529,342 |
) |
|
|
(547,786 |
) |
|
|
(579,537 |
) |
|
|
(618,516 |
) |
|
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(647,828 |
) |
| Other items |
|
|
7,637 |
|
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|
7,619 |
|
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7,682 |
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7,612 |
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7,426 |
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| Tier 1 capital |
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2,553,765 |
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2,500,491 |
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2,430,790 |
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2,351,493 |
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2,292,758 |
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| Subtract: Qualifying trust preferred securities |
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(10,000 |
) |
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(10,000 |
) |
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(10,000 |
) |
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(10,000 |
) |
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|
(10,000 |
) |
| Subtract: Series C Preferred Stock, no par value |
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(125,980 |
) |
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(125,980 |
) |
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(125,980 |
) |
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|
(125,862 |
) |
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(125,400 |
) |
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| Tier 1 common equity |
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2,417,785 |
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2,364,511 |
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2,294,810 |
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2,215,631 |
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2,157,358 |
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| Risk-weighted assets |
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22,811,614 |
(1) |
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22,702,108 |
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22,404,099 |
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22,316,091 |
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|
21,735,363 |
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| Tier 1 common equity ratio |
|
|
10.60 |
%(1) |
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10.42 |
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|
10.24 |
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|
9.93 |
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|
9.93 |
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| Tangible Common Equity to Tangible Assets Ratio |
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| Total assets |
|
$ |
26,519,110 |
|
|
$ |
26,627,290 |
|
|
$ |
26,435,426 |
|
|
$ |
26,201,604 |
|
|
$ |
26,218,360 |
|
| Subtract: Goodwill |
|
|
(24,431 |
) |
|
|
(24,431 |
) |
|
|
(24,431 |
) |
|
|
(24,431 |
) |
|
|
(24,431 |
) |
| Subtract: Other intangible assets, net |
|
|
(1,471 |
) |
|
|
(1,678 |
) |
|
|
(1,883 |
) |
|
|
(3,415 |
) |
|
|
(3,783 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible assets |
|
|
26,493,208 |
|
|
|
26,601,181 |
|
|
|
26,409,112 |
|
|
|
26,173,758 |
|
|
|
26,190,146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total shareholders’ equity |
|
|
3,076,545 |
|
|
|
3,053,051 |
|
|
|
2,998,496 |
|
|
|
2,948,985 |
|
|
|
2,931,860 |
|
| Subtract: Goodwill |
|
|
(24,431 |
) |
|
|
(24,431 |
) |
|
|
(24,431 |
) |
|
|
(24,431 |
) |
|
|
(24,431 |
) |
| Subtract: Other intangible assets, net |
|
|
(1,471 |
) |
|
|
(1,678 |
) |
|
|
(1,883 |
) |
|
|
(3,415 |
) |
|
|
(3,783 |
) |
| Subtract: Series C Preferred Stock, no par value |
|
|
(125,980 |
) |
|
|
(125,980 |
) |
|
|
(125,980 |
) |
|
|
(125,862 |
) |
|
|
(125,400 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible common equity |
|
|
2,924,663 |
|
|
|
2,900,962 |
|
|
|
2,846,202 |
|
|
|
2,795,277 |
|
|
|
2,778,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total shareholders’ equity to total assets ratio |
|
|
11.60 |
% |
|
|
11.47 |
|
|
|
11.34 |
|
|
|
11.25 |
|
|
|
11.18 |
|
|
|
|
|
|
|
| Tangible common equity to tangible assets ratio |
|
|
11.04 |
% |
|
|
10.91 |
|
|
|
10.78 |
|
|
|
10.68 |
|
|
|
10.61 |
|
|
|
|
|
|
|
| Adjusted net income per common share, diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income available to common shareholders |
|
$ |
44,229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Add: Litigation settlement expenses (after-tax) |
|
|
7,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deduct: Recovery of previously incurred legal costs related to certain legal matters, net of legal costs incurred in 3Q14 related to
those same legal matters (after-tax)(2) |
|
|
(2,211 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Add: Restructuring charges (after-tax) |
|
|
494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Add: Visa indemnification charges (after-tax) |
|
|
1,209 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted net income available to common shareholders |
|
$ |
51,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average common shares outstanding - diluted |
|
|
139,726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted net income per common share, diluted |
|
$ |
0.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures, continued
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
3Q14 |
|
|
2Q14 |
|
|
1Q14 |
|
|
4Q13 |
|
|
3Q13 |
|
| Adjusted Pre-tax, Pre-credit Costs Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes |
|
$ |
72,656 |
|
|
$ |
73,950 |
|
|
$ |
77,024 |
|
|
|
59,710 |
|
|
|
73,459 |
|
| Add: Provision for losses on loans |
|
|
3,843 |
|
|
|
12,284 |
|
|
|
9,511 |
|
|
|
14,064 |
|
|
|
6,761 |
|
| Add: Other credit costs(3) |
|
|
11,858 |
|
|
|
4,635 |
|
|
|
8,128 |
|
|
|
8,285 |
|
|
|
15,603 |
|
| Add: Restructuring charges |
|
|
809 |
|
|
|
7,716 |
|
|
|
8,577 |
|
|
|
3,770 |
|
|
|
687 |
|
|
|
|
|
|
|
| Add: Litigation settlement expenses(4) |
|
|
12,349 |
|
|
|
— |
|
|
|
— |
|
|
|
10,000 |
|
|
|
— |
|
| Subtract: Investment securities gains, net |
|
|
— |
|
|
|
— |
|
|
|
(1,331 |
) |
|
|
(373 |
) |
|
|
(1,124 |
) |
| Add: Visa indemnification charges |
|
|
1,979 |
|
|
|
356 |
|
|
|
396 |
|
|
|
799 |
|
|
|
— |
|
| Subtract: Gain on sale of Memphis branches, net(5) |
|
|
— |
|
|
|
— |
|
|
|
(5,789 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted pre-tax, pre-credit costs income |
|
|
103,494 |
|
|
|
98,941 |
|
|
|
96,516 |
|
|
|
96,255 |
|
|
|
95,386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Non-interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total non-interest expense |
|
$ |
193,749 |
|
|
$ |
182,205 |
|
|
$ |
184,161 |
|
|
|
190,738 |
|
|
|
187,328 |
|
| Subtract: Other credit costs(3) |
|
|
(11,858 |
) |
|
|
(4,635 |
) |
|
|
(8,128 |
) |
|
|
(8,285 |
) |
|
|
(15,603 |
) |
| Subtract: Restructuring charges |
|
|
(809 |
) |
|
|
(7,716 |
) |
|
|
(8,577 |
) |
|
|
(3,770 |
) |
|
|
(687 |
) |
| Subtract: Visa indemnification charges |
|
|
(1,979 |
) |
|
|
(356 |
) |
|
|
(396 |
) |
|
|
(799 |
) |
|
|
— |
|
| Subtract: Litigation settlement expenses(4) |
|
|
(12,349 |
) |
|
|
— |
|
|
|
— |
|
|
|
(10,000 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted non-interest expense |
|
|
166,754 |
|
|
|
169,498 |
|
|
|
167,060 |
|
|
|
167,884 |
|
|
|
171,038 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (2) |
Recovery of previously incurred legal costs represents a reimbursement from an insurance carrier for attorney fees incurred in previous periods in connection with certain
litigation. This amount, net of attorney fees incurred in 3Q14 relating to the same legal matters, is recorded as a component of professional fees in the consolidated income statement. These items are also a component of adjusted pre-tax,
pre-credit costs income. |
| (3) |
Other credit costs consist primarily of foreclosed real estate expense, net |
| (4) |
3Q14 and 4Q13 amounts consist of litigation settlement expenses, including loss contingency accruals, with respect to certain legal matters. Amounts for other
periods presented herein are not reported separately as amounts are not material. |
| (5) |
Consists of gain, net of associated costs, from the sale of certain loans, premises, deposits, and other assets and liabilities of the Memphis, Tennessee branches of Trust
One Bank, a division of Synovus Bank. |
Exhibit 99.2
Synovus
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME STATEMENT DATA |
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
| (Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Nine Months Ended
September 30, |
|
| |
|
2014 |
|
|
2013 |
|
|
Change |
|
| Interest income |
|
$ |
693,989 |
|
|
|
695,755 |
|
|
|
(0.3 |
)% |
| Interest expense |
|
|
82,160 |
|
|
|
89,894 |
|
|
|
(8.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
|
611,829 |
|
|
|
605,861 |
|
|
|
1.0 |
|
| Provision for loan losses |
|
|
25,638 |
|
|
|
55,534 |
|
|
|
(53.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income after provision for loan losses |
|
|
586,191 |
|
|
|
550,327 |
|
|
|
6.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
| Service charges on deposit accounts |
|
|
58,610 |
|
|
|
58,142 |
|
|
|
0.8 |
|
| Fiduciary and asset management fees |
|
|
33,536 |
|
|
|
32,471 |
|
|
|
3.3 |
|
| Brokerage revenue |
|
|
20,201 |
|
|
|
21,231 |
|
|
|
(4.9 |
) |
| Mortgage banking income |
|
|
13,459 |
|
|
|
19,569 |
|
|
|
(31.2 |
) |
| Bankcard fees |
|
|
24,394 |
|
|
|
22,662 |
|
|
|
7.6 |
|
| Investment securities gains, net |
|
|
1,331 |
|
|
|
2,571 |
|
|
|
(48.2 |
) |
| Other fee income |
|
|
14,495 |
|
|
|
16,461 |
|
|
|
(11.9 |
) |
| Decrease in fair value of private equity investments, net |
|
|
(513 |
) |
|
|
(856 |
) |
|
|
40.1 |
|
| Gain on sale of Memphis branches, net (1) |
|
|
5,789 |
|
|
|
— |
|
|
|
nm |
|
| Other non-interest income |
|
|
26,253 |
|
|
|
21,139 |
|
|
|
24.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total non-interest income |
|
|
197,555 |
|
|
|
193,390 |
|
|
|
2.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
| Salaries and other personnel expense |
|
|
279,855 |
|
|
|
276,190 |
|
|
|
1.3 |
|
| Net occupancy and equipment expense |
|
|
79,436 |
|
|
|
77,025 |
|
|
|
3.1 |
|
| Third-party services |
|
|
29,604 |
|
|
|
30,446 |
|
|
|
(2.8 |
) |
| FDIC insurance and other regulatory fees |
|
|
25,781 |
|
|
|
24,059 |
|
|
|
7.2 |
|
| Professional fees |
|
|
18,427 |
|
|
|
28,922 |
|
|
|
(36.3 |
) |
| Advertising expense |
|
|
15,935 |
|
|
|
6,513 |
|
|
|
144.7 |
|
| Foreclosed real estate expense, net |
|
|
18,818 |
|
|
|
28,800 |
|
|
|
(34.7 |
) |
| Losses on other loans held for sale, net |
|
|
2,050 |
|
|
|
487 |
|
|
|
320.9 |
|
| Visa indemnification charges |
|
|
2,731 |
|
|
|
801 |
|
|
|
240.9 |
|
| Litigation settlement expenses (2) |
|
|
12,349 |
|
|
|
— |
|
|
|
nm |
|
| Restructuring charges |
|
|
17,101 |
|
|
|
7,295 |
|
|
|
134.4 |
|
| Other operating expenses |
|
|
58,028 |
|
|
|
70,261 |
|
|
|
(17.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total non-interest expense |
|
|
560,115 |
|
|
|
550,799 |
|
|
|
1.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes |
|
|
223,631 |
|
|
|
192,918 |
|
|
|
15.9 |
|
| Income tax expense |
|
|
81,554 |
|
|
|
72,114 |
|
|
|
13.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
142,077 |
|
|
|
120,804 |
|
|
|
17.6 |
|
|
|
|
|
| Dividends and accretion of discount on preferred stock |
|
|
7,678 |
|
|
|
38,100 |
|
|
|
(79.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income available to common shareholders |
|
$ |
134,399 |
|
|
|
82,704 |
|
|
|
62.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per common share, basic (3) |
|
|
0.97 |
|
|
|
0.67 |
|
|
|
44.6 |
|
|
|
|
|
| Net income per common share, diluted (3) |
|
|
0.96 |
|
|
|
0.62 |
|
|
|
54.2 |
|
|
|
|
|
| Cash dividends declared per common share (3) |
|
|
0.21 |
|
|
|
0.21 |
|
|
|
— |
|
|
|
|
|
| Return on average assets |
|
|
0.72 |
% |
|
|
0.61 |
|
|
|
18.0 |
|
| Return on average common equity |
|
|
6.21 |
|
|
|
4.16 |
|
|
|
49.3 |
|
|
|
|
|
| Weighted average common shares outstanding, basic (3) |
|
|
138,989 |
|
|
|
123,652 |
|
|
|
12.4 |
% |
| Weighted average common shares outstanding, diluted (3) |
|
|
139,600 |
|
|
|
132,476 |
|
|
|
5.4 |
|
nm - not meaningful
| (1) |
Consists of gain, net of associated costs, from the sale of certain loans, premises, deposits, and other assets and liabilities of the Memphis, Tennessee branches of Trust One Bank, a division of Synovus Bank.
|
| (2) |
3Q14 and 4Q13 amounts consist of litigation settlement expenses, including loss contingency accruals, with respect to certain legal matters. Amounts for other periods presented herein are not reported separately as
amounts are not material. |
| (3) |
Share and per share data for prior periods has been restated to reflect the 1-for-7 reverse stock split which was effective on May 16, 2014. |
Synovus
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME STATEMENT DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2014 |
|
|
2013 |
|
|
3rd Quarter |
|
| |
|
Third
Quarter |
|
|
Second
Quarter |
|
|
First
Quarter |
|
|
Fourth
Quarter |
|
|
Third
Quarter |
|
|
‘14 vs. ‘13
Change |
|
| Interest income |
|
$ |
233,394 |
|
|
|
232,213 |
|
|
|
228,382 |
|
|
|
233,258 |
|
|
|
233,852 |
|
|
|
(0.2 |
)% |
| Interest expense |
|
|
27,131 |
|
|
|
27,162 |
|
|
|
27,868 |
|
|
|
28,927 |
|
|
|
29,882 |
|
|
|
(9.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
|
206,263 |
|
|
|
205,051 |
|
|
|
200,514 |
|
|
|
204,331 |
|
|
|
203,970 |
|
|
|
1.1 |
|
| Provision for loan losses |
|
|
3,843 |
|
|
|
12,284 |
|
|
|
9,511 |
|
|
|
14,064 |
|
|
|
6,761 |
|
|
|
(43.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income after provision for loan losses |
|
|
202,420 |
|
|
|
192,767 |
|
|
|
191,003 |
|
|
|
190,267 |
|
|
|
197,209 |
|
|
|
2.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Service charges on deposit accounts |
|
|
20,159 |
|
|
|
19,238 |
|
|
|
19,214 |
|
|
|
19,647 |
|
|
|
19,426 |
|
|
|
3.8 |
|
| Fiduciary and asset management fees |
|
|
11,207 |
|
|
|
11,296 |
|
|
|
11,033 |
|
|
|
10,978 |
|
|
|
10,389 |
|
|
|
7.9 |
|
| Brokerage revenue |
|
|
7,281 |
|
|
|
6,707 |
|
|
|
6,213 |
|
|
|
6,307 |
|
|
|
6,636 |
|
|
|
9.7 |
|
| Mortgage banking income |
|
|
4,665 |
|
|
|
5,283 |
|
|
|
3,511 |
|
|
|
2,913 |
|
|
|
5,314 |
|
|
|
(12.2 |
) |
| Bankcard fees |
|
|
8,182 |
|
|
|
8,695 |
|
|
|
7,518 |
|
|
|
7,979 |
|
|
|
7,760 |
|
|
|
5.4 |
|
| Investment securities gains, net |
|
|
— |
|
|
|
— |
|
|
|
1,331 |
|
|
|
373 |
|
|
|
1,124 |
|
|
|
nm |
|
| Other fee income |
|
|
4,704 |
|
|
|
4,928 |
|
|
|
4,863 |
|
|
|
6,106 |
|
|
|
5,199 |
|
|
|
(9.5 |
) |
| (Decrease) increase in fair value of private equity investments, net |
|
|
(144 |
) |
|
|
(119 |
) |
|
|
(250 |
) |
|
|
(2,108 |
) |
|
|
284 |
|
|
|
nm |
|
| Gain on sale of Memphis branches, net (1) |
|
|
— |
|
|
|
— |
|
|
|
5,789 |
|
|
|
— |
|
|
|
— |
|
|
|
nm |
|
| Other non-interest income |
|
|
7,931 |
|
|
|
7,360 |
|
|
|
10,960 |
|
|
|
7,986 |
|
|
|
7,446 |
|
|
|
6.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total non-interest income |
|
|
63,985 |
|
|
|
63,388 |
|
|
|
70,182 |
|
|
|
60,181 |
|
|
|
63,578 |
|
|
|
0.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Salaries and other personnel expense |
|
|
93,870 |
|
|
|
92,540 |
|
|
|
93,445 |
|
|
|
91,962 |
|
|
|
92,794 |
|
|
|
1.2 |
|
| Net occupancy and equipment expense |
|
|
26,956 |
|
|
|
26,425 |
|
|
|
26,056 |
|
|
|
26,314 |
|
|
|
26,475 |
|
|
|
1.8 |
|
| Third-party services |
|
|
10,044 |
|
|
|
9,464 |
|
|
|
10,097 |
|
|
|
9,689 |
|
|
|
10,151 |
|
|
|
(1.1 |
) |
| FDIC insurance and other regulatory fees |
|
|
8,013 |
|
|
|
8,049 |
|
|
|
9,719 |
|
|
|
8,699 |
|
|
|
7,639 |
|
|
|
4.9 |
|
| Professional fees |
|
|
2,526 |
|
|
|
8,224 |
|
|
|
7,677 |
|
|
|
9,855 |
|
|
|
11,410 |
|
|
|
(77.9 |
) |
| Advertising expense |
|
|
7,177 |
|
|
|
6,281 |
|
|
|
2,477 |
|
|
|
2,458 |
|
|
|
3,114 |
|
|
|
130.5 |
|
| Foreclosed real estate expense, net |
|
|
9,074 |
|
|
|
4,063 |
|
|
|
5,681 |
|
|
|
5,064 |
|
|
|
10,359 |
|
|
|
(12.4 |
) |
| (Gains) losses on other loans held for sale, net |
|
|
(176 |
) |
|
|
(40 |
) |
|
|
2,266 |
|
|
|
(159 |
) |
|
|
408 |
|
|
|
nm |
|
| Visa indemnification charges |
|
|
1,979 |
|
|
|
356 |
|
|
|
396 |
|
|
|
799 |
|
|
|
— |
|
|
|
nm |
|
| Litigation settlement expenses (2) |
|
|
12,349 |
|
|
|
— |
|
|
|
— |
|
|
|
10,000 |
|
|
|
— |
|
|
|
nm |
|
| Restructuring charges |
|
|
809 |
|
|
|
7,716 |
|
|
|
8,577 |
|
|
|
3,770 |
|
|
|
687 |
|
|
|
17.8 |
|
| Other operating expenses |
|
|
21,128 |
|
|
|
19,127 |
|
|
|
17,770 |
|
|
|
22,287 |
|
|
|
24,291 |
|
|
|
(13.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total non-interest expense |
|
|
193,749 |
|
|
|
182,205 |
|
|
|
184,161 |
|
|
|
190,738 |
|
|
|
187,328 |
|
|
|
3.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes |
|
|
72,656 |
|
|
|
73,950 |
|
|
|
77,024 |
|
|
|
59,710 |
|
|
|
73,459 |
|
|
|
(1.1 |
) |
| Income tax expense |
|
|
25,868 |
|
|
|
27,078 |
|
|
|
28,608 |
|
|
|
21,130 |
|
|
|
27,765 |
|
|
|
(6.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
46,788 |
|
|
|
46,872 |
|
|
|
48,416 |
|
|
|
38,580 |
|
|
|
45,694 |
|
|
|
2.4 |
|
|
|
|
|
|
|
|
| Dividends and accretion of discount on preferred stock |
|
|
2,559 |
|
|
|
2,559 |
|
|
|
2,559 |
|
|
|
2,730 |
|
|
|
8,506 |
|
|
|
(69.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income available to common shareholders |
|
$ |
44,229 |
|
|
|
44,313 |
|
|
|
45,857 |
|
|
|
35,850 |
|
|
|
37,188 |
|
|
|
18.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per common share, basic (3) |
|
$ |
0.32 |
|
|
|
0.32 |
|
|
|
0.33 |
|
|
|
0.26 |
|
|
|
0.27 |
|
|
|
16.9 |
% |
|
|
|
|
|
|
|
| Net income per common share, diluted (3) |
|
|
0.32 |
|
|
|
0.32 |
|
|
|
0.33 |
|
|
|
0.26 |
|
|
|
0.27 |
|
|
|
16.7 |
|
|
|
|
|
|
|
|
| Cash dividends declared per common share (3) |
|
|
0.07 |
|
|
|
0.07 |
|
|
|
0.07 |
|
|
|
0.07 |
|
|
|
0.07 |
|
|
|
— |
|
|
|
|
|
|
|
|
| Return on average assets |
|
|
0.70 |
% |
|
|
0.71 |
|
|
|
0.75 |
|
|
|
0.58 |
|
|
|
0.69 |
|
|
|
1.4 |
|
| Return on average common equity |
|
|
5.97 |
|
|
|
6.14 |
|
|
|
6.52 |
|
|
|
5.04 |
|
|
|
5.40 |
|
|
|
10.6 |
|
|
|
|
|
|
|
|
| Weighted average common shares outstanding, basic (3) |
|
|
139,043 |
|
|
|
138,991 |
|
|
|
138,932 |
|
|
|
138,897 |
|
|
|
136,671 |
|
|
|
1.7 |
|
| Weighted average common shares outstanding, diluted (3) |
|
|
139,726 |
|
|
|
139,567 |
|
|
|
139,504 |
|
|
|
139,419 |
|
|
|
137,097 |
|
|
|
1.9 |
|
nm - not meaningful
* - ratios
are annualized
| (1) |
Consists of gain, net of associated costs, from the sale of certain loans, premises, deposits, and other assets and liabilities of the Memphis, Tennessee branches of Trust One Bank, a division of Synovus Bank.
|
| (2) |
3Q14 and 4Q13 amounts consist of litigation settlement expenses, including loss contingency accruals, with respect to certain legal matters. Amounts for other periods presented herein are not reported separately as
amounts are not material. |
| (3) |
Share and per share data for prior periods has been restated to reflect the 1-for-7 reverse stock split which was effective on May 16, 2014. |
Synovus
BALANCE SHEET DATA
(Unaudited)
(In thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
September 30, 2014 |
|
|
December 31, 2013 |
|
|
September 30, 2013 |
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
386,402 |
|
|
|
469,630 |
|
|
|
514,694 |
|
| Interest bearing funds with Federal Reserve Bank |
|
|
750,446 |
|
|
|
644,528 |
|
|
|
966,435 |
|
| Interest earning deposits with banks |
|
|
13,612 |
|
|
|
24,325 |
|
|
|
14,060 |
|
| Federal funds sold and securities purchased under resale agreements |
|
|
70,918 |
|
|
|
80,975 |
|
|
|
80,177 |
|
| Trading account assets, at fair value |
|
|
12,705 |
|
|
|
6,113 |
|
|
|
17,363 |
|
| Mortgage loans held for sale, at fair value |
|
|
72,333 |
|
|
|
45,384 |
|
|
|
61,232 |
|
| Other loans held for sale |
|
|
338 |
|
|
|
10,685 |
|
|
|
9,351 |
|
| Investment securities available for sale, at fair value |
|
|
3,050,257 |
|
|
|
3,199,358 |
|
|
|
3,151,344 |
|
| Loans, net of deferred fees and costs |
|
|
20,588,566 |
|
|
|
20,057,798 |
|
|
|
19,711,610 |
|
| Allowance for loan losses |
|
|
(269,376 |
) |
|
|
(307,560 |
) |
|
|
(318,612 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans, net |
|
|
20,319,190 |
|
|
|
19,750,238 |
|
|
|
19,392,998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Premises and equipment, net |
|
|
456,633 |
|
|
|
468,871 |
|
|
|
476,088 |
|
| Goodwill |
|
|
24,431 |
|
|
|
24,431 |
|
|
|
24,431 |
|
| Other intangible assets, net |
|
|
1,471 |
|
|
|
3,415 |
|
|
|
3,783 |
|
| Other real estate |
|
|
81,636 |
|
|
|
112,629 |
|
|
|
126,640 |
|
| Deferred tax asset, net |
|
|
656,151 |
|
|
|
744,646 |
|
|
|
763,050 |
|
| Other assets |
|
|
622,587 |
|
|
|
616,376 |
|
|
|
616,714 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
26,519,110 |
|
|
|
26,201,604 |
|
|
|
26,218,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest bearing deposits |
|
$ |
5,813,809 |
|
|
|
5,642,751 |
|
|
|
5,358,659 |
|
| Interest bearing deposits, excluding brokered deposits |
|
|
13,609,038 |
|
|
|
14,140,037 |
|
|
|
14,339,997 |
|
| Brokered deposits |
|
|
1,566,934 |
|
|
|
1,094,002 |
|
|
|
1,275,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total deposits |
|
|
20,989,781 |
|
|
|
20,876,790 |
|
|
|
20,973,856 |
|
| Federal funds purchased and securities sold under repurchase agreements |
|
|
107,160 |
|
|
|
148,132 |
|
|
|
194,613 |
|
| Long-term debt |
|
|
2,130,934 |
|
|
|
2,033,141 |
|
|
|
1,885,057 |
|
| Other liabilities |
|
|
214,690 |
|
|
|
194,556 |
|
|
|
232,974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
23,442,565 |
|
|
|
23,252,619 |
|
|
|
23,286,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shareholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
| Series C Preferred Stock - no par value, 5,200,000 shares outstanding at September 30, 2014, December 31, 2013, and
September 30, 2013 |
|
|
125,980 |
|
|
|
125,862 |
|
|
|
125,400 |
|
| Common stock - $1.00 par value. 139,064,621 shares outstanding at September 30, 2014, 138,907,351 shares outstanding at
December 31, 2013, and 138,890,034 shares outstanding at September 30, 2013 (1) |
|
|
139,878 |
|
|
|
139,721 |
|
|
|
139,704 |
|
| Additional paid-in capital |
|
|
2,974,319 |
|
|
|
2,976,348 |
|
|
|
2,976,813 |
|
| Treasury stock, at cost - 813,350 shares (1) |
|
|
(114,176 |
) |
|
|
(114,176 |
) |
|
|
(114,176 |
) |
| Accumulated other comprehensive loss, net |
|
|
(24,827 |
) |
|
|
(41,258 |
) |
|
|
(29,514 |
) |
| Accumulated deficit |
|
|
(24,629 |
) |
|
|
(137,512 |
) |
|
|
(166,367 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total shareholders’ equity |
|
|
3,076,545 |
|
|
|
2,948,985 |
|
|
|
2,931,860 |
|
| Total liabilities and shareholders’ equity |
|
$ |
26,519,110 |
|
|
|
26,201,604 |
|
|
|
26,218,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Share and per share data for prior periods has been restated to reflect the 1-for-7 reverse stock split which was effective on May 16, 2014. |
Synovus
AVERAGE BALANCES AND YIELDS/RATES (1)
(Unaudited)
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2014 |
|
|
2013 |
|
| |
|
Third
Quarter |
|
|
Second
Quarter |
|
|
First
Quarter |
|
|
Fourth
Quarter |
|
|
Third
Quarter |
|
| Interest Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Taxable investment securities (2) |
|
$ |
3,035,940 |
|
|
|
3,091,537 |
|
|
|
3,181,678 |
|
|
|
3,196,561 |
|
|
|
3,062,976 |
|
| Yield |
|
|
1.84 |
% |
|
|
1.87 |
|
|
|
1.91 |
|
|
|
1.90 |
|
|
|
1.76 |
|
| Tax-exempt investment securities (2) (4) |
|
$ |
5,168 |
|
|
|
5,781 |
|
|
|
6,421 |
|
|
|
7,758 |
|
|
|
9,835 |
|
| Yield (taxable equivalent) |
|
|
6.21 |
% |
|
|
6.23 |
|
|
|
6.24 |
|
|
|
6.14 |
|
|
|
6.26 |
|
| Trading account assets |
|
$ |
16,818 |
|
|
|
16,011 |
|
|
|
20,346 |
|
|
|
10,021 |
|
|
|
13,806 |
|
| Yield |
|
|
2.52 |
% |
|
|
2.25 |
|
|
|
3.16 |
|
|
|
4.60 |
|
|
|
4.50 |
|
| Commercial loans (3) (4) |
|
$ |
16,603,287 |
|
|
|
16,673,930 |
|
|
|
16,451,594 |
|
|
|
16,217,373 |
|
|
|
16,067,424 |
|
| Yield |
|
|
4.17 |
% |
|
|
4.19 |
|
|
|
4.21 |
|
|
|
4.28 |
|
|
|
4.37 |
|
| Consumer loans (3) |
|
$ |
3,814,160 |
|
|
|
3,695,010 |
|
|
|
3,628,347 |
|
|
|
3,615,836 |
|
|
|
3,528,057 |
|
| Yield |
|
|
4.44 |
% |
|
|
4.51 |
|
|
|
4.53 |
|
|
|
4.50 |
|
|
|
4.61 |
|
| Allowance for loan losses |
|
$ |
(274,698 |
) |
|
|
(293,320 |
) |
|
|
(307,078 |
) |
|
|
(316,001 |
) |
|
|
(328,084 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans, net (3) |
|
$ |
20,142,749 |
|
|
|
20,075,620 |
|
|
|
19,772,863 |
|
|
|
19,517,208 |
|
|
|
19,267,397 |
|
| Yield |
|
|
4.29 |
% |
|
|
4.32 |
|
|
|
4.34 |
|
|
|
4.40 |
|
|
|
4.50 |
|
| Mortgage loans held for sale |
|
$ |
70,766 |
|
|
|
59,678 |
|
|
|
38,699 |
|
|
|
46,036 |
|
|
|
85,493 |
|
| Yield |
|
|
3.96 |
% |
|
|
4.13 |
|
|
|
4.15 |
|
|
|
3.94 |
|
|
|
4.07 |
|
| Federal funds sold, due from Federal Reserve Bank, and other short-term investments |
|
$ |
974,363 |
|
|
|
843,018 |
|
|
|
935,300 |
|
|
|
1,235,144 |
|
|
|
1,375,921 |
|
| Yield |
|
|
0.23 |
% |
|
|
0.23 |
|
|
|
0.23 |
|
|
|
0.24 |
|
|
|
0.24 |
|
| Federal Home Loan Bank and Federal Reserve Bank stock (5) |
|
$ |
78,131 |
|
|
|
76,172 |
|
|
|
82,585 |
|
|
|
70,815 |
|
|
|
70,741 |
|
| Yield |
|
|
3.57 |
% |
|
|
4.15 |
|
|
|
3.21 |
|
|
|
2.85 |
|
|
|
2.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total interest earning assets |
|
$ |
24,323,935 |
|
|
|
24,167,817 |
|
|
|
24,037,892 |
|
|
|
24,083,543 |
|
|
|
23,886,169 |
|
| Yield |
|
|
3.81 |
% |
|
|
3.86 |
|
|
|
3.86 |
|
|
|
3.85 |
|
|
|
3.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest bearing demand deposits |
|
$ |
3,722,599 |
|
|
|
3,830,956 |
|
|
|
3,878,590 |
|
|
|
4,102,398 |
|
|
|
3,933,902 |
|
| Rate |
|
|
0.19 |
% |
|
|
0.19 |
|
|
|
0.19 |
|
|
|
0.19 |
|
|
|
0.23 |
|
| Money market accounts |
|
$ |
6,044,138 |
|
|
|
6,033,523 |
|
|
|
6,077,357 |
|
|
|
6,161,893 |
|
|
|
6,148,289 |
|
| Rate |
|
|
0.29 |
% |
|
|
0.31 |
|
|
|
0.32 |
|
|
|
0.33 |
|
|
|
0.33 |
|
| Savings deposits |
|
$ |
645,654 |
|
|
|
644,103 |
|
|
|
616,962 |
|
|
|
605,054 |
|
|
|
607,144 |
|
| Rate |
|
|
0.07 |
% |
|
|
0.09 |
|
|
|
0.10 |
|
|
|
0.10 |
|
|
|
0.11 |
|
| Time deposits under $100,000 |
|
$ |
1,335,848 |
|
|
|
1,364,322 |
|
|
|
1,423,487 |
|
|
|
1,491,673 |
|
|
|
1,526,974 |
|
| Rate |
|
|
0.56 |
% |
|
|
0.57 |
|
|
|
0.59 |
|
|
|
0.61 |
|
|
|
0.62 |
|
| Time deposits over $100,000 |
|
$ |
1,871,136 |
|
|
|
1,824,349 |
|
|
|
1,956,925 |
|
|
|
2,049,094 |
|
|
|
2,022,719 |
|
| Rate |
|
|
0.75 |
% |
|
|
0.74 |
|
|
|
0.76 |
|
|
|
0.80 |
|
|
|
0.84 |
|
| Brokered money market accounts |
|
$ |
174,538 |
|
|
|
184,233 |
|
|
|
207,681 |
|
|
|
210,380 |
|
|
|
202,802 |
|
| Rate |
|
|
0.27 |
% |
|
|
0.27 |
|
|
|
0.26 |
|
|
|
0.27 |
|
|
|
0.27 |
|
| Brokered time deposits |
|
$ |
1,320,082 |
|
|
|
1,216,934 |
|
|
|
1,027,167 |
|
|
|
984,047 |
|
|
|
1,130,491 |
|
| Rate |
|
|
0.52 |
% |
|
|
0.51 |
|
|
|
0.62 |
|
|
|
0.65 |
|
|
|
0.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total interest bearing deposits |
|
$ |
15,113,995 |
|
|
|
15,098,420 |
|
|
|
15,188,169 |
|
|
|
15,604,539 |
|
|
|
15,572,321 |
|
| Rate |
|
|
0.35 |
% |
|
|
0.36 |
|
|
|
0.38 |
|
|
|
0.39 |
|
|
|
0.42 |
|
| Federal funds purchased and securities sold under repurchase agreements |
|
$ |
171,429 |
|
|
|
219,490 |
|
|
|
215,027 |
|
|
|
216,757 |
|
|
|
195,717 |
|
| Rate |
|
|
0.08 |
% |
|
|
0.13 |
|
|
|
0.14 |
|
|
|
0.15 |
|
|
|
0.14 |
|
| Long-term debt |
|
$ |
2,142,705 |
|
|
|
2,099,578 |
|
|
|
2,156,836 |
|
|
|
1,886,223 |
|
|
|
1,885,385 |
|
| Rate |
|
|
2.54 |
% |
|
|
2.58 |
|
|
|
2.52 |
|
|
|
2.85 |
|
|
|
2.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total interest bearing liabilities |
|
$ |
17,428,129 |
|
|
|
17,417,488 |
|
|
|
17,560,032 |
|
|
|
17,707,519 |
|
|
|
17,653,423 |
|
| Rate |
|
|
0.62 |
% |
|
|
0.62 |
|
|
|
0.64 |
|
|
|
0.65 |
|
|
|
0.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest bearing demand deposits |
|
$ |
5,824,592 |
|
|
|
5,765,287 |
|
|
|
5,537,090 |
|
|
|
5,545,529 |
|
|
|
5,306,447 |
|
|
|
|
|
|
|
| Effective cost of funds |
|
|
0.44 |
% |
|
|
0.45 |
|
|
|
0.47 |
|
|
|
0.47 |
|
|
|
0.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest margin |
|
|
3.37 |
% |
|
|
3.41 |
|
|
|
3.39 |
|
|
|
3.38 |
|
|
|
3.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Taxable equivalent adjustment |
|
$ |
408 |
|
|
|
443 |
|
|
|
455 |
|
|
|
481 |
|
|
|
529 |
|
| (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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
September 30, 2014 |
|
| 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 |
|
$ |
1,152,728 |
|
|
|
5.6 |
% |
|
$ |
223 |
|
|
|
0.1 |
% |
| Hotels |
|
|
668,603 |
|
|
|
3.2 |
|
|
|
431 |
|
|
|
0.2 |
|
| Office Buildings |
|
|
1,107,012 |
|
|
|
5.4 |
|
|
|
2,759 |
|
|
|
1.0 |
|
| Shopping Centers |
|
|
856,399 |
|
|
|
4.2 |
|
|
|
10,414 |
|
|
|
4.3 |
|
| Commercial Development |
|
|
131,011 |
|
|
|
0.6 |
|
|
|
20,759 |
|
|
|
8.6 |
|
| Warehouses |
|
|
565,011 |
|
|
|
2.7 |
|
|
|
790 |
|
|
|
0.3 |
|
| Other Investment Property |
|
|
538,282 |
|
|
|
2.6 |
|
|
|
3,603 |
|
|
|
1.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investment Properties |
|
|
5,019,046 |
|
|
|
24.4 |
|
|
|
38,979 |
|
|
|
16.0 |
|
| 1-4 Family Construction |
|
|
143,888 |
|
|
|
0.7 |
|
|
|
324 |
|
|
|
0.1 |
|
| 1-4 Family Investment Mortgage |
|
|
813,867 |
|
|
|
4.0 |
|
|
|
14,432 |
|
|
|
6.0 |
|
| Residential Development |
|
|
179,799 |
|
|
|
0.9 |
|
|
|
14,362 |
|
|
|
5.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total 1-4 Family Properties |
|
|
1,137,554 |
|
|
|
5.5 |
|
|
|
29,118 |
|
|
|
12.0 |
|
| Land Acquisition |
|
|
588,779 |
|
|
|
2.9 |
|
|
|
40,128 |
|
|
|
16.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Commercial Real Estate |
|
|
6,745,379 |
|
|
|
32.8 |
|
|
|
108,225 |
|
|
|
44.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial, Financial, and Agricultural |
|
|
6,003,409 |
|
|
|
29.2 |
|
|
|
53,360 |
|
|
|
22.0 |
|
| Owner-Occupied |
|
|
4,013,666 |
|
|
|
19.5 |
|
|
|
26,810 |
|
|
|
11.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Commercial & Industrial |
|
|
10,017,075 |
|
|
|
48.7 |
|
|
|
80,170 |
|
|
|
33.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Home Equity Lines |
|
|
1,685,972 |
|
|
|
8.2 |
|
|
|
16,875 |
|
|
|
7.0 |
|
| Consumer Mortgages |
|
|
1,621,904 |
|
|
|
7.9 |
|
|
|
34,759 |
|
|
|
14.4 |
|
| Credit Cards |
|
|
253,853 |
|
|
|
1.3 |
|
|
|
— |
|
|
|
— |
|
| Other Retail Loans |
|
|
293,232 |
|
|
|
1.4 |
|
|
|
2,353 |
|
|
|
1.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Retail |
|
|
3,854,961 |
|
|
|
18.7 |
|
|
|
53,987 |
|
|
|
22.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unearned Income |
|
|
(28,849 |
) |
|
|
(0.1 |
) |
|
|
— |
|
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
20,588,566 |
|
|
|
100.0 |
% |
|
$ |
242,382 |
|
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOANS OUTSTANDING BY TYPE COMPARISON
(Unaudited)
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loan Type |
|
Total Loans
September 30, 2014 |
|
|
June 30, 2014 |
|
|
3Q14 vs. 2Q14
% change (1) |
|
|
September 30,
2013 |
|
|
3Q14 vs. 3Q13
% change |
|
| Multi-Family |
|
$ |
1,152,728 |
|
|
|
1,109,340 |
|
|
|
15.5 |
% |
|
|
960,136 |
|
|
|
20.1 |
% |
| Hotels |
|
|
668,603 |
|
|
|
724,659 |
|
|
|
(30.7 |
) |
|
|
656,514 |
|
|
|
1.8 |
|
| Office Buildings |
|
|
1,107,012 |
|
|
|
988,382 |
|
|
|
47.6 |
|
|
|
822,131 |
|
|
|
34.7 |
|
| Shopping Centers |
|
|
856,399 |
|
|
|
837,799 |
|
|
|
8.8 |
|
|
|
868,007 |
|
|
|
(1.3 |
) |
| Commercial Development |
|
|
131,011 |
|
|
|
139,966 |
|
|
|
(25.4 |
) |
|
|
168,402 |
|
|
|
(22.2 |
) |
| Warehouses |
|
|
565,011 |
|
|
|
566,890 |
|
|
|
(1.3 |
) |
|
|
557,409 |
|
|
|
1.4 |
|
| Other Investment Property |
|
|
538,282 |
|
|
|
498,153 |
|
|
|
32.0 |
|
|
|
508,646 |
|
|
|
5.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Investment Properties |
|
|
5,019,046 |
|
|
|
4,865,189 |
|
|
|
12.5 |
|
|
|
4,541,245 |
|
|
|
10.5 |
|
|
|
|
|
|
|
| 1-4 Family Construction |
|
|
143,888 |
|
|
|
135,596 |
|
|
|
24.3 |
|
|
|
138,719 |
|
|
|
3.7 |
|
| 1-4 Family Investment Mortgage |
|
|
813,867 |
|
|
|
837,648 |
|
|
|
(11.3 |
) |
|
|
850,024 |
|
|
|
(4.3 |
) |
| Residential Development |
|
|
179,799 |
|
|
|
178,793 |
|
|
|
2.2 |
|
|
|
199,435 |
|
|
|
(9.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total 1-4 Family Properties |
|
|
1,137,554 |
|
|
|
1,152,037 |
|
|
|
(5.0 |
) |
|
|
1,188,178 |
|
|
|
(4.3 |
) |
|
|
|
|
|
|
| Land Acquisition |
|
|
588,779 |
|
|
|
599,117 |
|
|
|
(6.8 |
) |
|
|
729,095 |
|
|
|
(19.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Commercial Real Estate |
|
|
6,745,379 |
|
|
|
6,616,343 |
|
|
|
7.7 |
|
|
|
6,458,518 |
|
|
|
4.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial, Financial, and Agricultural |
|
|
6,003,409 |
|
|
|
6,085,948 |
|
|
|
(5.4 |
) |
|
|
5,728,357 |
|
|
|
4.8 |
|
| Owner-Occupied |
|
|
4,013,666 |
|
|
|
4,013,492 |
|
|
|
0.0 |
|
|
|
3,977,068 |
|
|
|
0.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Commercial & Industrial |
|
|
10,017,075 |
|
|
|
10,099,440 |
|
|
|
(3.2 |
) |
|
|
9,705,425 |
|
|
|
3.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Home Equity Lines |
|
|
1,685,972 |
|
|
|
1,664,520 |
|
|
|
5.1 |
|
|
|
1,549,582 |
|
|
|
8.8 |
|
| Consumer Mortgages |
|
|
1,621,904 |
|
|
|
1,561,111 |
|
|
|
15.4 |
|
|
|
1,482,861 |
|
|
|
9.4 |
|
| Credit Cards |
|
|
253,853 |
|
|
|
255,369 |
|
|
|
(2.4 |
) |
|
|
253,805 |
|
|
|
0.0 |
|
| Other Retail Loans |
|
|
293,232 |
|
|
|
287,935 |
|
|
|
7.3 |
|
|
|
286,421 |
|
|
|
2.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Retail |
|
|
3,854,961 |
|
|
|
3,768,935 |
|
|
|
9.1 |
|
|
|
3,572,669 |
|
|
|
7.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unearned Income |
|
|
(28,849 |
) |
|
|
(28,955 |
) |
|
|
(1.5 |
) |
|
|
(25,002 |
) |
|
|
15.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
20,588,566 |
|
|
|
20,455,763 |
|
|
|
2.6 |
% |
|
|
19,711,610 |
|
|
|
4.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Percentage change is annualized. |
Synovus
CREDIT QUALITY DATA
(Unaudited)
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2014 |
|
|
2013 |
|
|
3rd Quarter |
|
| |
|
Third
Quarter |
|
|
Second
Quarter |
|
|
First
Quarter |
|
|
Fourth
Quarter |
|
|
Third
Quarter |
|
|
‘14 vs. ‘13
Change |
|
| Non-performing Loans |
|
$ |
242,382 |
|
|
|
259,547 |
|
|
|
384,324 |
|
|
|
416,300 |
|
|
|
450,879 |
|
|
|
(46.2 |
)% |
| Other Loans Held for Sale (1) |
|
|
338 |
|
|
|
2,045 |
|
|
|
3,120 |
|
|
|
10,685 |
|
|
|
9,351 |
|
|
|
(96.4 |
) |
| Other Real Estate |
|
|
81,636 |
|
|
|
101,533 |
|
|
|
110,757 |
|
|
|
112,629 |
|
|
|
126,640 |
|
|
|
(35.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-performing Assets |
|
|
324,356 |
|
|
|
363,125 |
|
|
|
498,201 |
|
|
|
539,614 |
|
|
|
586,870 |
|
|
|
(44.7 |
) |
|
|
|
|
|
|
|
| Allowance for Loan Losses |
|
|
269,376 |
|
|
|
277,783 |
|
|
|
300,871 |
|
|
|
307,560 |
|
|
|
318,612 |
|
|
|
(15.5 |
) |
|
|
|
|
|
|
|
| Net Charge-Offs - Quarter |
|
|
12,250 |
|
|
|
35,371 |
|
|
|
15,181 |
|
|
|
25,116 |
|
|
|
23,030 |
|
|
|
(46.8 |
) |
| Net Charge-Offs - YTD |
|
|
62,802 |
|
|
|
50,552 |
|
|
|
15,181 |
|
|
|
135,443 |
|
|
|
110,327 |
|
|
|
(43.1 |
) |
| Net Charge-Offs / Average Loans - Quarter (2) |
|
|
0.24 |
% |
|
|
0.69 |
|
|
|
0.30 |
|
|
|
0.51 |
|
|
|
0.47 |
|
|
|
|
|
|
|
|
|
|
|
|
| Non-performing Loans / Loans |
|
|
1.18 |
|
|
|
1.27 |
|
|
|
1.91 |
|
|
|
2.08 |
|
|
|
2.29 |
|
|
|
|
|
| Non-performing Assets / Loans, Other Loans Held for Sale & ORE |
|
|
1.57 |
|
|
|
1.77 |
|
|
|
2.46 |
|
|
|
2.67 |
|
|
|
2.96 |
|
|
|
|
|
| Allowance / Loans |
|
|
1.31 |
|
|
|
1.36 |
|
|
|
1.49 |
|
|
|
1.53 |
|
|
|
1.62 |
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance / Non-performing Loans |
|
|
111.14 |
|
|
|
107.03 |
|
|
|
78.29 |
|
|
|
73.88 |
|
|
|
70.66 |
|
|
|
|
|
| Allowance / Non-performing Loans (3) |
|
|
176.47 |
|
|
|
177.62 |
|
|
|
100.16 |
|
|
|
95.43 |
|
|
|
91.84 |
|
|
|
|
|
|
|
|
|
|
|
|
| Past Due Loans over 90 days and Still Accruing |
|
$ |
4,067 |
|
|
|
4,798 |
|
|
|
6,563 |
|
|
|
4,489 |
|
|
|
4,738 |
|
|
|
(14.2 |
)% |
| As a Percentage of Loans Outstanding |
|
|
0.02 |
% |
|
|
0.02 |
|
|
|
0.03 |
|
|
|
0.02 |
|
|
|
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
| Total Past Dues Loans and Still Accruing |
|
$ |
72,712 |
|
|
|
60,428 |
|
|
|
75,038 |
|
|
|
72,600 |
|
|
|
78,906 |
|
|
|
(7.8 |
) |
| As a Percentage of Loans Outstanding |
|
|
0.35 |
% |
|
|
0.30 |
|
|
|
0.37 |
|
|
|
0.36 |
|
|
|
0.40 |
|
|
|
|
|
|
|
|
|
|
|
|
| Accruing Troubled Debt Restructurings (TDRs) |
|
$ |
408,737 |
|
|
|
444,108 |
|
|
|
495,390 |
|
|
|
556,410 |
|
|
|
574,236 |
|
|
|
(28.8 |
) |
| (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. |
| (3) |
Excludes non-performing loans for which the expected loss has been charged off. |
SELECTED CAPITAL
INFORMATION (1)
(Unaudited)
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
September 30, 2014 |
|
|
December 31, 2013 |
|
|
September 30, 2013 |
|
| Tier 1 Capital |
|
$ |
2,553,765 |
|
|
|
2,351,493 |
|
|
|
2,292,758 |
|
| Total Risk-Based Capital |
|
|
3,005,346 |
|
|
|
2,900,865 |
|
|
|
2,835,108 |
|
| Tier 1 Capital Ratio |
|
|
11.19 |
% |
|
|
10.54 |
|
|
|
10.55 |
|
| Tier 1 Common Equity Ratio |
|
|
10.60 |
|
|
|
9.93 |
|
|
|
9.93 |
|
| Total Risk-Based Capital Ratio |
|
|
13.17 |
|
|
|
13.00 |
|
|
|
13.04 |
|
| Tier 1 Leverage Ratio |
|
|
9.85 |
|
|
|
9.13 |
|
|
|
8.96 |
|
| Common Equity as a Percentage of Total Assets (2) |
|
|
11.13 |
|
|
|
10.77 |
|
|
|
10.70 |
|
| Tangible Common Equity as a Percentage of Tangible Assets (3) |
|
|
11.04 |
|
|
|
10.68 |
|
|
|
10.61 |
|
| Tangible Common Equity as a Percentage of Risk Weighted Assets (3) |
|
|
12.82 |
|
|
|
12.53 |
|
|
|
12.78 |
|
| Book Value Per Common Share (4)(5) |
|
|
21.22 |
|
|
|
20.32 |
|
|
|
20.21 |
|
| Tangible Book Value Per Common Share (3)(5) |
|
|
21.03 |
|
|
|
20.12 |
|
|
|
20.00 |
|
| (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. |
| (5) |
Per share data for prior periods has been restated to reflect the 1-for-7 reverse stock split which was effective on May 16, 2014. impact of unexercised tangible equity units (tMEDs). |
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