Form 8-K SYNOVUS FINANCIAL CORP For: Jul 21

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

July 21, 2015

Date of Report

(Date of Earliest Event Reported)

Synovus Financial Corp.

(Exact Name of Registrant as Specified in its Charter)

 

Georgia		1-10312		58-1134883
(State of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

1111 Bay Avenue, Suite 500, Columbus, Georgia 31901

(Address of principal executive offices) (Zip Code)

(706) 649-2311

(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:

 

¨

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Item 2.02

Results of Operations and Financial Condition

On July 21, 2015, Synovus Financial Corp. (the “Company”) issued a press release announcing the Company’s financial results for the three and six months ended June 30, 2015.

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 months and six months ended June 30, 2015 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 July 21, 2015, 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 July 21, 2015.

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

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Item 9.01

Financial Statements and Exhibits

 

(d)

Exhibits

 

Exhibit No.

Description

 

99.1

Synovus press release dated July 21, 2015

 

99.2

Supplemental Information prepared for use with the press release

 

99.3

Slide presentation prepared for use with the press release

 

3

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Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, Synovus has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

				SYNOVUS FINANCIAL CORP. (“Synovus”)
Dated: July 21, 2015				By:		/s/ Allan E. Kamensky
						Allan E. Kamensky
						Executive Vice President,
						General Counsel and Secretary

 

4

Exhibit 99.1

 

 

Media Contact Lee Underwood Media Relations (706) 644-0528		Investor Contact Bob May Investor Relations (706) 649-3555

Synovus Announces Earnings for the Second Quarter of 2015

Diluted Earnings per Share increased 25.5% as compared to 2Q14

COLUMBUS, Ga., July 21, 2015 – Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended June 30, 2015.

Second Quarter Highlights

 

●

Net income available to common shareholders for the second quarter of 2015 was $53.2 million or $0.40 per diluted share as compared to $51.4 million, or $0.38 per diluted share for the previous quarter and $44.3 million, or $0.32 per diluted share for the second quarter 2014.

 

●

Net income available to common shareholders for the second quarter of 2015 was $55.9 million or $0.42 per diluted share, excluding litigation contingency expense.

 

●

Total loans grew $388.7 million or 7.4% annualized from the previous quarter and $1.04 billion or 5.1% as compared to the second quarter 2014.

 

●

Average core deposits grew $889.9 million or 17.8% annualized from the previous quarter and $1.45 billion or 7.4% as compared to the second quarter 2014.

 

●

Adjusted pre-tax, pre-credit costs income was $103.6 million for the second quarter 2015, an increase of $2.6 million or 2.6% from $101.0 million for the previous quarter and an increase of $4.7 million or 4.7% as compared to the second quarter 2014.

 

●

The company continued to return capital to shareholders during the quarter, acquiring an additional $50.3 million of common stock. Since October 2014 through July 20, 2015, the company has repurchased $202.9 million of common stock, reducing total share count by 7.5 million or 5.4%.

“We are pleased to report solid second quarter results as evidenced by strong loan and core deposit growth as well as increased fee income driven by strong mortgage production,” said Kessel D. Stelling, chairman and CEO. “During the quarter, we were also proud to be recognized as one of America’s Most Reputable Banks by American Banker magazine and the Reputation Institute, and were among only three companies ranked in the top 10 by both customers and non-customers. This recognition, along with our steadily improving financial performance, validates that our focus on relationship banking — defined by local leadership, personal service, and a deep commitment to strengthening our communities — differentiates Synovus and clearly resonates with customers and prospects.”

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Balance Sheet

 

●

Total loans ended the quarter at $21.49 billion, up $388.7 million or 7.4% annualized, from the previous quarter and up $1.04 billion or 5.1% as compared to the second quarter 2014.

¡

Commercial real estate loans grew by $164.3 million from the previous quarter, or 9.5% annualized.

¡

Retail loans grew by $127.1 million from the previous quarter, or 13.0% annualized.

¡

Commercial and industrial loans grew by $97.0 million from the previous quarter, or 3.8% annualized.

●

Total average deposits for the quarter were $22.47 billion, and grew by $851.1 million or 15.8% annualized from the previous quarter and $1.60 billion or 7.7% as compared to the second quarter 2014.

●

Average core deposits for the quarter were $20.91 billion, and grew by $889.9 million or 17.8% annualized from the previous quarter and $1.45 billion or 7.4% as compared to the second quarter 2014.

●

Average core deposits, excluding state, county, and municipal deposits, grew by $836.4 million or 18.9% annualized from the previous quarter and $1.44 billion or 8.4% as compared to the second quarter 2014.

Core Performance

Adjusted pre-tax, pre-credit costs income was $103.6 million for the second quarter 2015, an increase of $2.6 million or 2.6% from $101.0 million for the previous quarter and an increase of $4.7 million or 4.7% as compared to the second quarter 2014.

 

●

Net interest income was $203.6 million for the second quarter 2015, up $381 thousand from $203.3 million in the previous quarter.

●

Net interest margin declined 13 basis points to 3.15% compared to 3.28% in the previous quarter. Yield on earning assets was 3.61%, 12 basis points lower than the previous quarter, and the effective cost of funds increased 1 basis point to 0.46%.

¡

Increased balances at the Fed contributed 7 basis points of the decline in the yield on earning assets.

●

Adjusted non-interest income was $66.8 million, up $1.7 million or 2.6% compared to $65.1 million for the previous quarter and up $3.5 million or 5.5% as compared to the second quarter 2014.

¡

Mortgage banking income increased $1.0 million or 15.8% from the previous quarter, driven by a 19.8% increase in production.

¡

Core banking fees1 were $32.4 million, up $876 thousand or 2.8% from the previous quarter, primarily driven by higher service charges on deposit accounts and bankcard fees.

¡

Gains from the sale of SBA loans of $1.4 million were down $92 thousand from the previous quarter and up $1.6 million year-to-date as compared to 2014.

¡

Financial Management Services revenues, consisting primarily of fiduciary and asset management fees and brokerage revenue, decreased 2.8% from the previous quarter and increased 3.7% as compared to the second quarter 2014.

 

 

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.

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●

Total non-interest expense for the second quarter 2015 was $177.8 million, down $1.1 million from the previous quarter and down $4.4 million or 2.4% as compared to the second quarter 2014.

●

Adjusted non-interest expense for the second quarter 2015 was $166.9 million, down $495 thousand or 0.3% from the previous quarter and down $2.6 million or 1.5% as compared to the second quarter 2014.

¡

Employment expense of $94.6 million decreased $1.9 million from the previous quarter.

¡

Advertising expense of $2.9 million decreased $578 thousand from the previous quarter.

¡

Professional fees of $6.4 million increased $823 thousand from the previous quarter.

Credit Quality

Broad-based improvement in credit quality continued.

 

●

Total credit costs were $12.8 million in the second quarter 2015 compared to $15.7 million in the previous quarter.

●

Non-performing loans, excluding loans held for sale, were $173.6 million at June 30, 2015, down $20.6 million or 10.6% from the previous quarter, and down $85.9 million or 33.1% from June 30, 2014. The non-performing loan ratio was 0.81% at June 30, 2015, compared to 0.92% at the end of the previous quarter and 1.27% at June 30, 2014.

●

Total non-performing assets were $240.1 million at June 30, 2015, down $30.0 million or 11.1% from the previous quarter, and down $123.0 million or 33.9% from June 30, 2014. The non-performing asset ratio was 1.11% at June 30, 2015, compared to 1.28% at the end of the previous quarter and 1.77% at June 30, 2014.

●

Total delinquencies (consisting of loans 30 or more days past due and still accruing) remain low at 0.24% of total loans at June 30, 2015 compared to 0.27% the previous quarter and 0.30% at June 30, 2014. Total loans past due 90 days or more and still accruing were 0.02% of total loans at June 30, 2015, unchanged from March 31, 2015 and June 30, 2014.

●

Net charge-offs were $5.3 million in the second quarter 2015, down $7.0 million or 57.0% from $12.3 million in the previous quarter. The annualized net charge-off ratio was 0.10% in the second quarter compared to 0.23% in the previous quarter.

Capital Ratios

Capital ratios remained strong and include the impact of common stock repurchases completed through June 30, 2015.

 

●

Common Equity Tier 1 ratio was 10.73% at June 30, 2015 compared to 10.80% at March 31, 2015.

●

Tier 1 Capital ratio was 10.73% at June 30, 2015 compared to 10.80% at March 31, 2015.

●

Total Risk Based Capital ratio was 12.18% at June 30, 2015 compared to 12.65% at March 31, 2015.

●

Tier 1 Leverage ratio was 9.48% at June 30, 2015 compared to 9.66% at March 31, 2015.

●

Tangible Common Equity ratio was 10.13% at June 30, 2015 compared to 10.43% at March 31, 2015.

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Second Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on July 21, 2015. 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. 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 $28 billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services to customers through 28 locally-branded divisions, 258 branches, and 341 ATMs in Georgia, Alabama, South Carolina, Florida, and Tennessee. Synovus Bank, a wholly owned subsidiary of Synovus, was named one of America’s Most Reputable Banks by American Banker and the Reputation Institute in 2015. See Synovus on the web at 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, 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, 2014 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

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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; tangible common equity to tangible assets ratio; adjusted net income per diluted common share; adjusted pre-tax, pre-credit costs income; adjusted non-interest 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; total shareholders’ equity to total assets ratio; net income per diluted common share; income before income taxes; total non-interest income; 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; total shareholders’ equity to total assets ratio; net income per diluted common share; income before income taxes; total non-interest income; 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; tangible common equity to tangible assets ratio; adjusted net income per diluted common share; adjusted pre-tax, pre-credit costs income; adjusted non-interest income; and adjusted non-interest expense; and the reconciliation of these measures to total average deposits; total shareholders’ equity to total assets ratio; net income per diluted common share; income before income taxes; total non-interest income; and total non-interest expense are set forth in the tables below.

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Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)		2Q15				1Q15				4Q14				3Q14				2Q14
Average core deposits
Average core deposits excluding state, county, and municipal deposits
Average total deposits			$ 22,466,102				21,615,049				21,336,007				20,938,587				20,863,706
Subtract: Average brokered deposits			(1,555,931)				(1,594,822)				(1,602,354)				(1,494,620)				(1,401,167)
Average core deposits			20,910,171				20,020,227				19,733,653				19,443,967				19,462,539
Subtract: Average state, county, and municipal deposits			(2,277,783)				(2,224,193)				(2,184,757)				(2,045,817)				(2,268,852)
Average core deposits excluding state, county, and municipal deposits			$ 18,632,388				17,796,034				17,548,896				17,398,150				17,193,687
Tangible common equity to tangible assets ratio
Total assets			$ 28,205,870				27,633,784				27,051,231				26,519,110				26,627,290
Subtract: Goodwill			(24,431)				(24,431)				(24,431)				(24,431)				(24,431)
Subtract: Other intangible assets, net			(863)				(1,061)				(1,265)				(1,471)				(1,678)
Tangible assets			28,180,576				27,608,292				27,025,535				26,493,208				26,601,181
Total shareholders’ equity			3,006,157				3,030,635				3,041,270				3,076,545				3,053,051
Subtract: Goodwill			(24,431)				(24,431)				(24,431)				(24,431)				(24,431)
Subtract: Other intangible assets, net			(863)				(1,061)				(1,265)				(1,471)				(1,678)
Subtract: Series C Preferred Stock, no par value			(125,980)				(125,980)				(125,980)				(125,980)				(125,980)
Tangible common equity			$  2,854,883				2,879,163				2,889,594				2,924,663				2,900,962
Total shareholders’ equity to total assets ratio			10.66%				10.97				11.24%				11.60				11.47
Tangible common equity to tangible assets ratio			10.13%				10.43				10.69%				11.04				10.91
Adjusted net income per diluted common share
Net income available to common shareholders			$      53,234
Add: Litigation contingency expense (after-tax)(1)			2,688
Adjusted net income available to common shareholders			$      55,922
Weighted average common shares outstanding - diluted			133,625
Adjusted net income per diluted common share			$          0.42

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Reconciliation of Non-GAAP Financial Measures, continued
(dollars in thousands)		2Q15				1Q15				4Q14				3Q14				2Q14
Adjusted Pre-tax, Pre-credit Costs Income
Income before income taxes			$        88,035				85,812				78,928				72,656				73,950
Add: Provision for losses on loans			6,636				4,397				8,193				3,843				12,284
Add: Other credit costs(2)			6,175				11,273				8,213				11,858				4,635
Add: Restructuring charges			4				(107)				3,484				809				7,716
Add: Litigation contingency/settlement expenses (1)			4,400				-				463				12,349				-
Subtract: Investment securities gains, net			(1,985)				(725)				-				-				-
Add: Visa indemnification charges			354				375				310				1,979				356
Pre-tax, pre-credit costs income			$      103,619				101,025				99,591				103,494				98,941
Adjusted Non-interest Income
Total non-interest income			$        68,832				65,854				64,549				63,985				63,388
Subtract: Investment securities gains, net			(1,985)				(725)				-				-				-
Adjusted non-interest income			$        66,847				65,129				64,549				63,985				63,388
Adjusted Non-interest Expense
Total non-interest expense			$      177,805				178,908				184,883				193,749				182,205
Subtract: Other credit costs(2)			(6,175)				(11,273)				(8,213)				(11,858)				(4,635)
Subtract: Restructuring charges			(4)				107				(3,484)				(809)				(7,716)
Subtract: Visa indemnification charges			(354)				(375)				(310)				(1,979)				(356)
Subtract: Litigation contingency/settlement expenses (1)			(4,400)				-				(463)				(12,349)				-
Adjusted non-interest expense			$      166,872				167,367				172,413				166,754				169,498

  ⁽¹⁾ Amounts for other periods presented herein are not reported separately as amounts are not material.

  ⁽²⁾ Other credit costs consist primarily of foreclosed real estate expense, net.

Exhibit 99.2

Synovus

 

nm - not meaningful

bps - basis points

 

(1)	Consists of gain, net of associated costs, from the 1Q14 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)	Amount for six months ended June 30, 2014 is not reported separately because it is not material.

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Synovus

  INCOME STATEMENT DATA

  (Unaudited)

  (In thousands, except per share data)

 

nm - not meaningful

bps - basis points

* - ratios are annualized

 

(1)	Amounts for other periods presented herein are not reported separately as amounts are not material.

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Synovus

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Synovus

AVERAGE BALANCES AND YIELDS/RATES (1)

(Unaudited)

(Dollars in thousands)

 

 

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Synovus

 

LOANS OUTSTANDING AND NON-PERFORMING LOANS COMPOSITION

(Unaudited)

(Dollars in thousands)

 

						June 30, 2015
										Loans as a %								Total								Non-performing Loans
										of Total Loans								Non-performing								as a % of Total
Loan Type						Total Loans				Outstanding								Loans								Nonperforming Loans
Multi-Family		$					1,286,747				6.0	%		$					222			$					0.1	%
Hotels							674,305				3.1								405								0.2
Office Buildings							1,348,234				6.3								728								0.4
Shopping Centers							917,678				4.3								57								0.0
Commercial Development							118,263				0.6								10,966								6.3
Warehouses							524,525				2.4								403								0.2
Other Investment Property							554,141				2.6								385								0.2
Total Investment Properties							5,423,893				25.2								13,166								7.6
1-4 Family Construction							147,572				0.7								90								0.1
1-4 Family Investment Mortgage							788,704				3.7								9,288								5.3
Residential Development							161,130				0.7								10,012								5.8
Total 1-4 Family Properties							1,097,406				5.1								19,390								11.2
Land Acquisition							554,501				2.5								23,396								13.5
Total Commercial Real Estate							7,075,800				32.9								55,952								32.3
Commercial, Financial, and Agricultural							6,259,553				29.0								43,733								25.1
Owner-Occupied							4,140,769				19.3								29,338								16.9
Total Commercial & Industrial							10,400,322				48.4								73,071								42.1
Home Equity Lines							1,683,651				7.8								17,802								10.3
Consumer Mortgages							1,793,752				8.3								24,855								14.3
Credit Cards							246,724				1.2								-								-
Other Retail Loans							323,741				1.5								1,958								1.1
Total Retail							4,047,868				18.8								44,615								25.7
Unearned Income							(29,121)				(0.1)								-								nm
Total		$					21,494,869				100.0	%		$					173,638								100.0	%
LOANS OUTSTANDING BY TYPE COMPARISON (Unaudited) (Dollars in thousands)
						Total Loans												2Q15 vs. 1Q15												2Q15 vs. 2Q14
Loan Type						June 30, 2015				March 31, 2015								% change (1)								June 30, 2014				% change
Multi-Family		$					1,286,747				1,227,286								19.4	%		$					1,109,340				16.0	%
Hotels							674,305				645,912								17.6								742,037				(9.1)
Office Buildings							1,348,234				1,287,048								19.1								995,614				35.4
Shopping Centers							917,678				876,667								18.8								838,231				9.5
Commercial Development							118,263				123,679								(17.6)								139,966				(15.5)
Warehouses							524,525				531,234								(5.1)								565,781				(7.3)
Other Investment Property							554,141				538,434								11.7								499,611				10.9
Total Investment Properties							5,423,893				5,230,260								14.8								4,890,580				10.9
1-4 Family Construction							147,572				148,248								(1.8)								129,991				13.5
1-4 Family Investment Mortgage							788,704				793,672								(2.5)								842,605				(6.4)
Residential Development							161,130				169,696								(20.2)								178,110				(9.5)
Total 1-4 Family Properties							1,097,406				1,111,616								(5.1)								1,150,706				(4.6)
Land Acquisition							554,501				569,649								(10.7)								609,285				(9.0)
Total Commercial Real Estate							7,075,800				6,911,525								9.5								6,650,571				6.4
Commercial, Financial, and Agricultural							6,259,553				6,175,460								5.5								6,059,794				3.3
Owner-Occupied							4,140,769				4,127,863								1.3								4,005,418				3.4
Total Commercial & Industrial							10,400,322				10,303,323								3.8								10,065,212				3.3
Home Equity Lines							1,683,651				1,672,038								2.8								1,664,520				1.1
Consumer Mortgages							1,793,752				1,702,388								21.5								1,561,111				14.9
Credit Cards							246,724				242,257								7.4								255,369				(3.4)
Other Retail Loans							323,741				304,050								26.0								287,935				12.4
Total Retail							4,047,868				3,920,733								13.0								3,768,935				7.4
Unearned Income							(29,121)				(29,368)								(3.4)								(28,955)				0.6
Total		$					21,494,869				21,106,213								7.4	%		$					20,455,763				5.1	%

(1) Percentage change is annualized.

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Synovus

CREDIT QUALITY DATA

(Unaudited)

(Dollars in thousands)

 

(1) Represent impaired loans that are intended to be sold. Held for sale loans are carried at the lower of cost or fair value, less costs to sell.

(2) Ratio is annualized.

(3) Excludes non-performing loans for which the expected loss has been charged off.

 

SELECTED CAPITAL INFORMATION ⁽¹⁾

(Unaudited)

		(Dollars in thousands)
						June 30, 2015				December 31, 2014				June 30, 2014
		Capital Rules in effect:				Basel III				Basel I				Basel I
		Tier 1 Capital		$			2,615,827				2,543,625				2,500,491
		Total Risk-Based Capital					2,971,517				2,987,406				2,958,274
		Common Equity Tier 1 Ratio (transitional)					10.73	%			na				na
		Common Equity Tier 1 Ratio (fully phased-in)					10.09				na				na
		Tier 1 Common Equity Ratio					na				10.28				10.42
		Tier 1 Capital Ratio					10.73				10.86				11.01
		Total Risk-Based Capital Ratio					12.18				12.75				13.03
		Tier 1 Leverage Ratio					9.48				9.67				9.69
		Common Equity as a Percentage of Total Assets (2)					10.21				10.78				10.99
		Tangible Common Equity as a Percentage of Tangible Assets (3)					10.13				10.69				10.91
		Tangible Common Equity as a Percentage of Risk Weighted Assets (3)					11.71				12.33				12.78
		Book Value Per Common Share (4)					21.78				21.42				21.05
		Tangible Book Value Per Common Share (3)					21.59				21.23				20.87

 

(1) Current quarter regulatory capital information is preliminary. 2015 regulatory capital ratios determined under Basel III capital rules.

      2014 ratios were determined under Basel I capital rules.

(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.

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