Synovus Reports Increased Profit for First Quarter of 2012
Third Consecutive Profitable Quarter Highlighted by Improvement in Key Credit Metrics
COLUMBUS, Ga.--(BUSINESS WIRE)-- Synovus Financial Corp. (SNV) today reported financial results for the quarter ended March 31, 2012.
First Quarter Results
- Net income available to common shareholders was $21.4 million for the first quarter of 2012, compared to net income available to common shareholders of $12.8 million in the fourth quarter of 2011 and a net loss attributable to common shareholders of $93.7 million in the first quarter of 2011.
- Diluted net income per common share for the first quarter of 2012 was $0.024 compared to diluted net income per common share of $0.014 for the fourth quarter of 2011, and a net loss per common share of $0.119 for the first quarter of 2011.
We are pleased to report a profit for the third consecutive quarter, said Kessel D. Stelling, Chairman and CEO of Synovus. Our first quarter was highlighted by a significant reduction in non-performing loan inflows, lower net charge-offs, and a reduction in all key problem loan categories. These improving trends in key credit metrics are the main drivers of long-term, sustained profitability. During the quarter, our performance also included net interest margin improvement and the continued downward trend in expenses.
- Non-performing loan inflows were $139.6 million in the first quarter of 2012, down 26.2% from $189.2 million in the fourth quarter of 2011 and down 54.5% from $306.5 million in the first quarter of 2011.
- Net charge-offs were $94.7 million in the quarter, down 16.5% from $113.5 million in the fourth quarter of 2011, and down 43.2% from $166.9 million in the first quarter of 2011. The annualized net charge-off ratio was 1.90% in the first quarter, down from 2.26% in the previous quarter, and down from 3.12% in the first quarter of 2011.
- Total delinquencies (consisting of loans 30 or more days past due and still accruing) were 0.73% of total loans at March 31, 2012, down from 0.74% at December 31, 2011, and 0.96% at March 31, 2011. Total loans past due 90 days or more and still accruing were 0.04% at March 31, 2012, down from 0.07% at December 31, 2011, and 0.05% at March 31, 2011.
- Potential problem commercial loans (consisting of substandard accruing loans but excluding loans 90 days past due and still accruing interest and substandard accruing troubled debt restructurings which are reported separately) declined for the sixth consecutive quarter to $685.5 million, a 12.1% decline from the fourth quarter of 2011, and a 46.6% decrease from the first quarter of 2011.
- Total non-performing assets were $1.06 billion at March 31, 2012, down $61.6 million from the previous quarter, and down $219.7 million or 17.2% from the first quarter of 2011. The non-performing asset ratio was 5.26% at March 31, 2012, compared to 5.50% at the end of the previous quarter and 5.97% at March 31, 2011.
- Total accruing troubled debt restructurings (TDRs) decreased to $651.2 million at March 31, 2012, down from $668.5 million the previous quarter. At March 31, 2012, approximately 97% of accruing TDRs are current as to principal and interest.
- Distressed asset sales were approximately $135 million during the first quarter, compared to approximately $147 million in the fourth quarter of 2011, and approximately $192 million in the first quarter of 2011.
- Total credit costs were $90.9 million in the first quarter of 2012, compared to $90.5 million in the fourth quarter of 2011 and down 48.7% from $177.1 million in the first quarter of 2011.
Pre-tax, pre-credit costs income was $110.6 million for the first quarter of 2012, down $3.2 million from $113.8 million in the fourth quarter of 2011.
- The net interest margin was 3.55%, up three basis points from the fourth quarter of 2011 and the first quarter of 2011.
- The effective cost of funds was down four basis points, while the yield on earning assets was down one basis point.
- Total non-interest income was $84.1 million for the first quarter of 2012, compared to $73.5 million in the fourth quarter of 2011.
- Non-interest income, excluding net investment securities gains of $20.1 million in the first quarter of 2012 and $10.3 million in the fourth quarter of 2011, was up $0.9 million from the previous quarter, with mortgage revenues up $1.2 million from the prior quarter.
- Total reported non-interest expense was $203.1 million for the first quarter of 2012 compared to $219.1 million for the previous quarter.
- Core expenses (excludes Visa indemnification charges, restructuring charges and credit costs) were down $2.1 million from the fourth quarter of 2011.
Balance Sheet Fundamentals
- Net sequential quarter loan decline, excluding the impact of loan sales, transfers to loans held-for-sale, charge-offs, and foreclosures, was approximately $25 million for the first quarter, compared to an increase of approximately $167 million during the fourth quarter of 2011 and a decline of approximately $238 million during the first quarter of 2011.
- On a sequential quarter basis, total loans declined $236.1 million, compared to a $22.3 million decrease in the previous quarter, and a $588.3 million decrease in the first quarter of 2011.
- Total core deposits ended the quarter at $20.7 billion, up $102.4 million compared to the fourth quarter of 2011, driven by increases in demand deposits and money market funds, and a decline in time deposits.
- Non-interest bearing demand deposits were up $169.0 million or 12.7% (annualized) from the fourth quarter of 2011, and up $837.3 million or 17.8% from the first quarter of 2011.
- The number of non-interest bearing demand deposit accounts increased by 3,501 accounts, or 4.0% (annualized), over the fourth quarter of 2011.
- Total deposits ended the quarter at $22.1 billion, down $274.1 million from the previous quarter due primarily to the planned reductions in brokered deposits and time deposits.
- The effective cost of core deposits (includes non-interest bearing deposits) continued to decline, with an effective cost of 47 basis points for the first quarter of 2012, compared to 53 basis points for the previous quarter and 72 basis points in the first quarter of 2011.
Regulatory Capital Ratios
- Tier 1 Common Equity ratio was 8.67% at March 31, 2012 up from 8.49% at December 31, 2011.
- Tier 1 Capital ratio was 13.19% at March 31, 2012 up from 12.94% at December 31, 2011.
- Tier 1 Leverage ratio was 10.41% at March 31, 2012 up from 10.08% at December 31, 2011.
- Total Risk-based Capital ratio was 16.57% at March 31, 2012 up from 16.49% at December 31, 2011.
Stelling concluded, "This quarter marks another significant step on our path to sustained profitability. While credit improvement and expense discipline remain key to our long-term success, we are very focused on core revenue growth and providing great value to our customers. We continue to invest in new technology and talent, all with the goal of providing unparalleled service throughout our markets. Our efforts are reflected both in the growth in the number of accounts and overall core deposit balances, and are further evidenced by our number one market share position in twelve markets and top five market share position in markets representing almost eighty percent of our deposit franchise. Recently announced, nationally recognized awards for excellence in customer service show that our customer-focused, relationship-based brand of banking is working well and provides a solid foundation for our future.
Synovus will host an earnings highlights conference call at 8:30 a.m. EST on April 24, 2012. The earnings call will be accompanied by a slide presentation. Shareholders and other interested parties can access the slide presentation and listen to the conference call via simultaneous Internet broadcast at www.synovus.com by clicking on the Live Webcast icon. RealPlayer or Windows Media Player can be downloaded prior to accessing the actual call or the replay. The replay will be archived for 12 months and will be available 30-45 minutes after the call.
Synovus Financial Corp. is a financial services company with over $27 billion in assets based in Columbus, Georgia. Synovus Financial Corp. provides commercial and retail banking, investment and mortgage services to customers in Georgia, Alabama, South Carolina, Florida and Tennessee. See Synovus Financial Corp. on the web at www.synovus.com.
This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute forward-looking statements within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements through Synovus use of words such as believes, anticipates, expects, may, will, assumes, should, predicts, could, would, intends, targets, estimates, projects, plans, potential and other similar words and expressions of the future or otherwise regarding the outlook for Synovus future business and financial performance and/or the performance of the commercial banking industry and economy in general. These forward-looking statements include, among others, our expectations on credit trends, deposits and our loan portfolio; expectations on growth and expense discipline; statements regarding our continued sustainable profitability in future periods; and the assumptions underlying our expectations. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Synovus to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, Synovus management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements in this report. Many of these factors are beyond Synovus ability to control or predict.
These forward-looking statements are based upon information presently known to Synovus management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in Synovus filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2011 under the captions Cautionary Notice Regarding Forward-Looking Statements and Risk Factors and in Synovus quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as otherwise may be required by law.
Use of Non-GAAP Financial Measures
The measures entitled core deposits, tangible common equity to tangible assets ratio, pre-tax, pre-credit costs income, core expenses, non-interest income excluding net investment securities gains (losses), and net sequential quarter loan growth (decline) are not measures recognized under U.S. generally accepted accounting principles (GAAP), and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are total deposits, total shareholders equity to total assets ratio, income (loss) before income taxes, total non-interest expense, total non-interest income, and sequential quarter total loan growth (decline), respectively.
Synovus believes that these non-GAAP financial measures provide meaningful additional information about Synovus to assist management and investors in evaluating Synovus capital strength and the performance of its core business. These non-GAAP financial measures should not be considered as substitutes for total deposits, total shareholders equity to total assets ratio, income (loss) before income taxes, total non-interest expense, total non-interest income, or sequential quarter total loan growth (decline) determined in accordance with GAAP and may not be comparable to other similarly titled measures at other companies.
The computations of core deposits, tangible common equity to tangible assets ratio, pre-tax, pre-credit costs income, core expenses, non-interest income excluding net investment securities gains (losses), and net sequential quarter loan growth (decline) and the reconciliation of these measures to total deposits, total shareholders equity to total assets ratio, income (loss) before income taxes, total non-interest expense, total non-interest income, and sequential quarter total loan growth (decline) are set forth in the tables below.
Reconciliation of Non-GAAP Financial Measures
|(dollars in thousands)||1Q12||4Q11||3Q11||2Q11||1Q11|
|Subtract: Brokered deposits||(1,406,709||)||(1,783,174||)||(2,157,631||)||(2,690,598||)||(2,978,615||)|
|Tangible Common Equity To Tangible Assets Ratio|
|Subtract: Other intangible assets, net||(7,589||)||(8,525||)||(9,482||)||(10,449||)||(11,424||)|
|Total shareholders equity||$||2,821,763||2,827,452||2,829,447||2,850,937||2,882,605|
|Subtract: Other intangible assets, net||(7,589||)||(8,525||)||(9,482||)||(10,449||)||(11,424||)|
|Subtract: Cumulative perpetual preferred stock||(949,536||)||(947,017||)||(944,538||)||(942,096||)||(939,691||)|
|Tangible common equity||$||1,840,208||1,847,479||1,850,996||1,873,961||1,907,059|
|Total shareholders equity to total assets ratio||10.43||%||10.41||10.01||10.07||10.05|
|Tangible common equity to tangible assets ratio||6.81||%||6.81||6.56||6.63||6.66|
|Pre-tax, Pre-credit Costs Income|
|Income (loss) before income taxes||$||35,916||26,979||37,118||(43,764||)||(79,864||)|
|Add: Provision for losses on loans||66,049||54,565||102,325||120,159||141,746|
|Add: Other credit costs(1)||24,849||35,962||40,211||37,772||35,347|
|Add: Restructuring charges||858||639||2,587||3,106||24,333|
Subtract: Net gain on investment securities
Add: Loss on curtailment of post-
|Add: Visa indemnification charge||2,979||5,942||--||--||--|
|Pre-tax, pre-credit costs income||$||110,568||113,750||119,368||116,896||120,540|
|Total non-interest expense||$||
|Subtract: Other credit costs(1)||(24,849||)||(35,962||)||(40,211||)||(37,771||)||(35,350||)|
|Subtract: Restructuring charges||(858||)||(639||)||(2,587||)||(3,106||)||(24,333||)|
Subtract: (Loss) on curtailment of
Subtract: Visa indemnification charge
|(1) Other credit costs consist primarily of losses on ORE, provision for losses on unfunded commitments, and charges related to other loans held for sale.|
Reconciliation of Non-GAAP Financial Measures (continued)
|(dollars in thousands)||1Q12||4Q11||3Q11||2Q11||1Q11|
Non-interest income excluding investment securities gains, net
|Total non-interest income||$||
Subtract: Investment securities gains, net
|Non-interest income excluding investment securities gains, net||$||
|Net sequential quarter loan growth (decline)|
|Sequential quarter decline in total loans||$||
|Add: Transfers to other loans held for sale||578||3,457||16,004||11,275||73,442|
|Add: Charge-offs excluding transfers to other loans held for sale and loan sales||65,498||78,443||87,660||126,821||98,000|
|Add: Loan sales||96,621||70,808||109,140||126,462||108,719|
|Net sequential quarter loan growth (decline)||$||
|INCOME STATEMENT DATA|
|(Dollars in thousands, except per share data)||2012||
|First||Fourth||Third||Second||First||'12 vs. '11|
|Net interest income||220,959||227,156||228,603||230,961||237,434||(6.9||)|
|Provision for losses on loans||66,049||54,565||102,325||120,159||141,746||(53.4||)|
|Net interest income after provision for losses on loans||154,910||172,591||126,278||110,802||95,688||61.9|
|Service charges on deposit accounts||18,231||19,175||20,039||19,238||20,318||(10.3||)|
|Fiduciary and asset management fees||10,835||10,763||11,631||11,879||11,537||(6.1||)|
|Investment securities gains (losses), net||20,083||10,337||62,873||377||1,420||nm|
|Other fee income||4,700||4,310||5,423||5,289||4,931||(4.7||)|
|Increase (decrease) in fair value of private equity investments, net||93||(177||)||(771||)||(301||)||132||(29.5||)|
|Other non-interest income||9,968||10,126||8,652||7,404||6,454||54.4|
|Total non-interest income||84,139||73,470||133,392||67,849||64,164||31.1|
|Salaries and other personnel expense||92,622||93,115||93,184||91,749||93,100||(0.5||)|
|Net occupancy and equipment expense||26,706||27,338||27,981||28,883||29,834||(10.5||)|
|FDIC insurance and other regulatory fees||14,663||13,238||15,463||15,956||14,406||1.8|
|Foreclosed real estate expense||22,972||31,853||37,108||39,872||24,737||(7.1||)|
|Losses (gains) on other loans held for sale, net||959||(145||)||(846||)||480||(2,226||)||nm|
|Data processing expense||8,024||8,532||9,024||9,251||8,950||(10.3||)|
|Visa indemnification charges||2,979||5,942||-||92||4||nm|
|Loss on curtailment of post-retirement defined benefit plan||-||-||-||-||398||nm|
|Other operating expenses||24,083||28,249||27,916||22,133||36,944||(34.8||)|
|Total non-interest expense||203,133||219,082||222,552||222,415||239,716||(15.3||)|
|Income (loss) before income taxes||35,916||26,979||37,118||(43,764||)||(79,864||)||nm|
|Income tax (benefit) expense||(77||)||(378||)||6,910||(4,764||)||(456||)||nm|
|Net income (loss)||35,993||27,357||30,208||(39,000||)||(79,408||)||nm|
|Net loss attributable to non-controlling interest||-||-||-||-||(220||)||nm|
|Net income (loss) available to controlling interest||35,993||27,357||30,208||(39,000||)||(79,188||)||nm|
|Dividends and accretion of discount on preferred stock||14,624||14,578||14,541||14,504||14,466||1.1|
|Net income (loss) available to common shareholders||$||21,369||12,779||15,667||(53,504||)||(93,654||)||nm|
|Net income (loss) available to common shareholders||0.027||0.016||0.020||(0.068||)||(0.119||)||nm|
|Net income (loss) available to common shareholders||0.024||0.014||0.017||(0.068||)||(0.119||)||nm|
|Cash dividends declared per common share||0.01||0.01||0.01||0.01||0.01||-|
|Return on average assets *||0.53||%||0.39||0.42||(0.55||)||(1.09||)||nm|
|Return on average common equity *||4.49||2.66||3.20||(10.95||)||(18.46||)||nm|
|Average common shares outstanding - basic||786,135||785,289||785,280||785,277||785,243||0.1|
|Average common shares outstanding - diluted||908,986||911,253||911,247||785,277||785,243||15.8|
nm - not meaningful
* - ratios are annualized
|BALANCE SHEET DATA||March 31, 2012||December 31, 2011||March 31, 2011|
|(In thousands, except share data)|
|Cash and due from banks||$||485,074||510,423||407,201|
|Interest bearing funds with Federal Reserve Bank||1,781,002||1,567,006||2,541,884|
|Interest earning deposits with banks||11,963||13,590||22,217|
|Federal funds sold and securities purchased|
|under resale agreements||123,676||158,916||129,938|
|Trading account assets, at fair value||16,398||16,866||17,641|
|Mortgage loans held for sale, at fair value||96,837||161,509||112,246|
|Other loans held for sale||19,610||30,156||111,057|
|Investment securities available for sale, at fair value||3,713,503||3,690,125||3,346,483|
|Loans, net of unearned income||19,843,698||20,079,813||20,997,422|
|Allowance for loan losses||(507,794||)||(536,494||)||(678,426||)|
|Premises and equipment, net||479,976||486,923||495,490|
|Other intangible assets, net||7,589||8,525||11,424|
|LIABILITIES AND EQUITY|
|Non-interest bearing deposits||$||5,535,844||5,366,868||4,698,580|
|Interest bearing deposits, excluding brokered deposits||15,195,149||15,261,710||15,528,685|
|Federal funds purchased and other short-term borrowings||315,857||313,757||425,209|
|Cumulative perpetual preferred stock, no par value (1)||949,536||947,017||939,691|
|Common stock, par value $1.00 (2)||792,269||790,989||790,968|
|Additional paid-in capital||2,226,844||2,241,171||2,352,329|
|Treasury stock, at cost (3)||(114,176||)||(114,176||)||(114,176||)|
|Accumulated other comprehensive income||(2,195||)||21,093||40,149|
|Total shareholders' equity||2,821,763||2,827,452||2,882,605|
|Non-controlling interest in subsidiaries||-||-||94|
|Total liabilities and equity||$||27,064,792||27,162,845||28,678,203|
|(1) Preferred shares outstanding: 967,870, at all periods presented|
(2) Common shares outstanding: 786,575,497; 785,295,428; and 785,274,094 at March 31, 2012, December 31, 2011, and March 31, 2011, respectively.
|(3) Treasury shares: 5,693,452, at all periods presented|
|AVERAGE BALANCES AND YIELDS/RATES (1)|
|(Dollars in thousands)|
|Interest Earning Assets|
|Taxable investment securities (2)||$||3,577,026||3,647,459||3,152,589||3,172,818||3,264,581|
|Tax-exempt investment securities (2) (4)||$||23,559||25,566||27,903||31,264||44,228|
|Yield (taxable equivalent)||6.36||%||6.57||6.66||6.73||6.84|
|Trading account assets||$||14,975||19,107||14,601||16,881||20,281|
|Commercial loans (3) (4)||$||16,144,615||16,276,207||16,535,371||16,983,912||17,555,733|
|Consumer loans (3)||$||3,866,084||3,871,393||3,869,698||3,879,042||3,914,222|
|Allowance for loan losses||$||(529,669)||(587,956)||(632,082)||(678,851)||(698,609)|
|Loans, net (3)||$||19,481,030||19,559,644||19,772,987||20,184,103||20,771,346|
|Mortgage loans held for sale||$||112,040||161,632||91,257||79,340||152,981|
|Federal funds sold, due from Federal Reserve Bank,|
|and other short-term investments||$||1,830,295||2,221,728||3,075,470||2,929,515||3,033,284|
|Federal Home Loan Bank and Federal Reserve Bank stock (5)||$||78,100||84,171||96,442||104,727||111,096|
|Total interest earning assets||$||25,117,025||25,719,307||26,231,249||26,518,648||27,397,797|
|Interest Bearing Liabilities|
|Interest bearing demand deposits||$||3,540,327||3,457,677||3,302,439||3,379,243||3,526,730|
|Money market accounts||$||6,755,769||6,697,334||6,636,751||6,306,399||6,550,623|
|Time deposits under $100,000||$||1,967,084||2,062,171||2,131,453||2,124,525||2,212,215|
|Time deposits over $100,000||$||2,480,044||2,710,893||2,912,476||2,978,929||3,291,202|
|Brokered money market accounts||$||223,113||236,973||325,002||390,048||393,981|
|Brokered time deposits||$||1,346,868||1,689,538||2,053,811||2,471,620||2,665,314|
|Total interest bearing deposits||$||16,847,323||17,371,106||17,883,536||18,171,282||19,133,569|
Federal funds purchased and other short-term liabilities
|Total interest bearing liabilities||$||18,529,665||19,144,274||19,945,520||20,522,227||21,437,153|
|Non-interest bearing demand deposits||$||5,397,964||5,413,322||5,175,521||4,911,044||4,821,237|
|Net interest margin||3.55||%||3.52||3.47||3.51||3.52|
|Taxable equivalent adjustment||$||798||844||880||893||964|
|(1) Yields and rates are annualized.|
|(2) Excludes net unrealized gains and (losses).|
|(3) Average loans are shown net of unearned income. Non-performing loans are included.|
(4) Reflects taxable-equivalent adjustments, using the statutory federal income tax rate of 35%, in adjusting interest on tax-exempt loans and investment securities to a taxable-equivalent basis.
(5) Included as a component of Other Assets on the balance sheet
|LOANS OUTSTANDING AND NON-PERFORMING LOANS COMPOSITION|
|(Dollars in thousands)|
|March 31, 2012|
|Loans as a %||Total||Non-performing Loans|
|of Total Loans||Non-performing||as a % of Total|
|Loan Type||Total Loans||Outstanding||Loans||Nonperforming Loans|
|Other Investment Property||463,307||2.3||5,338||0.6|
|Total Investment Properties||4,446,808||22.3||79,143||9.5|
|1-4 Family Construction||177,111||0.9||17,383||2.1|
|1-4 Family Investment Mortgage||955,819||4.8||57,611||6.9|
|Total 1-4 Family Properties||1,554,156||7.8||178,416||21.3|
|Total Commercial Real Estate||7,050,511||35.5||500,509||59.8|
|Commercial , Financial, and Agricultural||5,122,095||25.8||161,014||19.3|
|Owner-Occupied Real Estate||3,813,638||19.2||92,725||11.1|
|Total Commercial & Industrial||8,935,733||45.0||253,739||30.4|
|Home Equity Lines||1,595,675||8.0||24,795||3.0|
|Other Retail Loans||618,487||3.1||6,053||0.7|
|LOANS OUTSTANDING BY TYPE COMPARISON|
|(Dollars in thousands)|
|Total Loans||1Q12 vs. 4Q11||1Q12 vs. 1Q11|
|Loan Type||March 31, 2012||December 31, 2011||% change (1)||March 31, 2011||% change|
|Other Investment Property||463,307||449,198||12.6||470,379||(1.5)|
|Total Investment Properties||4,446,808||4,557,313||(9.8)||4,913,563||(9.5)|
|1-4 Family Construction||177,111||199,088||(44.4)||278,661||(36.4)|
|1-4 Family Investment Mortgage||955,819||976,552||(8.5)||1,091,498||(12.4)|
|Total 1-4 Family Properties||1,554,156||1,618,484||(16.0)||1,954,599||(20.5)|
|Total Commercial Real Estate||7,050,511||7,270,618||(12.2)||8,064,472||(12.6)|
|Commercial , Financial, and Agricultural||5,122,095||5,088,420||2.7||5,128,080||(0.1)|
|Owner-Occupied Real Estate||3,813,638||3,852,854||(4.1)||3,936,498||(3.1)|
|Total Commercial & Industrial||8,935,733||8,941,274||(0.2)||9,064,578||(1.4)|
|Home Equity Lines||1,595,675||1,619,585||(5.9)||1,617,842||(1.4)|
|Other Retail Loans||618,487||575,475||30.1||533,338||16.0|
(1) Percentage change is annualized.
|CREDIT QUALITY DATA|
|(Dollars in thousands)||2012||
|First||Fourth||Third||Second||First||'12 vs. '11|
|Other Loans Held for Sale (1)||18,317||30,156||53,074||89,139||110,436||(83.4)|
|Other Real Estate||201,429||204,232||239,255||244,313||269,314||(25.2)|
|Allowance for Loan Losses||507,794||536,494||595,383||631,401||678,426||(25.2)|
|Net Charge-Offs - Quarter||
|Net Charge-Offs / Average Loans - Quarter (2)||1.90||%||2.26||2.72||3.22||3.12|
|Non-performing Loans / Loans||4.21||4.40||4.34||4.32||4.27|
|Non-performing Assets / Loans, Other Loans Held for Sale & ORE||5.26||5.50||5.71||5.85||5.97|
|Allowance / Loans||2.56||2.67||2.96||3.08||3.23|
|Allowance / Non-performing Loans||60.74||60.76||68.27||71.33||75.74|
|Allowance / Non-performing Loans (3)||128.32||
|Past Due Loans over 90 days and Still Accruing||$||8,388||14,521||26,860||23,235||10,490||(20.0)||%|
|As a Percentage of Loans Outstanding||0.04||%||0.07||0.13||0.11||0.05|
|Total Past Dues Loans and Still Accruing||$||144,794||149,441||199,561||199,804||201,754||(28.2)|
|As a Percentage of Loans Outstanding||0.73||%||0.74||0.99||0.97||0.96|
|Accruing troubled debt restructurings (TDRs)||$||651,239||668,472||640,324||551,603||545,416||19.4|
|(1) Represent impaired loans that are intended to be sold. Held for sale loans are carried at the lower of cost or fair value, less costs to sell.|
|(2) Ratio is annualized.|
|(3) Excludes non-performing loans for which the expected loss has been charged off.|
|SELECTED CAPITAL INFORMATION (1)|
|(Dollars in thousands)|
|March 31, 2012||December 31, 2011||March 31, 2011|
|Tier 1 Capital||$||2,799,794||2,780,774||2,812,101|
|Total Risk-Based Capital||3,518,230||3,544,089||3,591,466|
|Tier 1 Capital Ratio||13.19||%||12.94||12.78|
|Tier 1 Common Equity Ratio||8.67||8.49||8.47|
|Total Risk-Based Capital Ratio||16.57||16.49||16.32|
|Tier 1 Leverage Ratio||10.41||10.08||9.58|
|Common Equity as a Percentage of Total Assets (2)||6.92||6.92||6.77|
|Tangible Common Equity as a Percentage of Tangible Assets (3)||6.81||6.81||6.66|
|Tangible Common Equity as a Percentage of Risk Weighted Assets (3)||8.67||8.60||8.67|
|Book Value Per Common Share (4) (5)||2.05||2.06||2.14|
|Tangible Book Value Per Common Share (3) (5)||2.01||2.02||2.10|
|(1) Current quarter regulatory capital information is preliminary.|
|(2) Common equity consists of Total Shareholders' Equity less Cumulative Perpetual Perferred 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 Cumulative Perpetual Preferred Stock divided by total common shares outstanding.|
|(5) Equity and common shares exclude impact of unexercised tangible equity units (tMEDS).|
Synovus Financial Corp.
Patrick A. Reynolds, 706-649-4973
Director of Investor Relations
Source: Synovus Financial Corp.Copyright Business Wire 2012