SYNOVUS FINANCIAL CORP - FORM 8-K - EX-99.2 - October 20, 2020

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EX-99.3 - EX-99.3 - SYNOVUS FINANCIAL CORPsynovus3q20earningsdeck_.htm
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8-K - 8-K - SYNOVUS FINANCIAL CORPsyn-20201020.htm


Exhibit 99.2
INCOME STATEMENT DATA
(Unaudited)
(Dollars in thousands, except per share data)Third Quarter
20202019'20 vs '19
% Change
Interest income$1,371,016 $1,544,385 (11)%
Interest expense244,200 347,850 (30)
Net interest income1,126,816 1,196,535 (6)
Provision for credit losses343,956 63,250 444 
Net interest income after provision for credit losses782,860 1,133,285 (31)
Non-interest revenue:
Service charges on deposit accounts54,069 65,805 (18)
Fiduciary and asset management fees46,009 42,743 8 
Card fees30,959 34,334 (10)
Brokerage revenue32,987 30,502 8 
Mortgage banking income66,987 23,313 187 
Capital markets income22,984 21,557 7 
Income from bank-owned life insurance21,572 15,605 38 
Investment securities gains/(losses), net76,594 (5,502)nm
Gain on sale and fair value increase, net, on private equity investments4,712 3,507 nm
Other non-interest revenue34,879 26,081 34 
Total non-interest revenue391,752 257,945 52 
Non-interest expense:
Salaries and other personnel expense464,268 424,952 9 
Net occupancy, equipment, and software expense125,475 119,262 5 
Third-party processing and other services63,466 55,403 15 
Professional fees39,358 25,379 55 
FDIC insurance and other regulatory fees18,922 21,872 (13)
Amortization of intangibles7,920 8,702 (9)
Goodwill impairment 44,877 — nm
Merger-related expense— 57,493 nm
Earnout liability adjustments4,908 10,457 nm
Loss on early extinguishment of debt, net2,057 4,592 nm
Valuation adjustment to Visa derivative— 2,500 nm
Restructuring charges8,924 (29)nm
Other operating expenses96,901 102,264 (5)
Total non-interest expense877,076 832,847 5 
Income before income taxes297,536 558,383 (47)
Income tax expense74,250 146,287 (49)
Net income223,286 412,096 (46)
Less: Preferred stock dividends24,872 14,591 70 
Net income available to common shareholders$198,414 $397,505 (50)%
Net income per common share, basic$1.35 $2.53 (47)%
Net income per common share, diluted1.34 2.51 (47)
Cash dividends declared per common share0.99 0.90 10 
Return on average assets *0.58 %1.18 %(60)bps
Return on average common equity *5.87 12.09 (622)
Weighted average common shares outstanding, basic147,304 156,819 (6)%
Weighted average common shares outstanding, diluted148,037 158,595 (7)
nm - not meaningful
bps - basis points
* - ratios are annualized




Synovus
INCOME STATEMENT DATA
(Unaudited)
(Dollars in thousands, except per share data)20202019Third Quarter
Third QuarterSecond QuarterFirst QuarterFourth QuarterThird Quarter'20 vs '19
% Change
Interest income$435,550 451,569 483,897 506,253 523,415 (17)%
Interest expense58,560 75,003 110,637 106,985 121,318 (52)
Net interest income376,990 376,566 373,260 399,268 402,097 (6)
Provision for credit losses43,383 141,851 158,722 24,470 27,562 57 
Net interest income after provision for credit losses333,607 234,715 214,538 374,798 374,535 (11)
Non-interest revenue:
Service charges on deposit accounts17,813 15,567 20,689 22,385 22,952 (22)
Fiduciary and asset management fees15,885 14,950 15,174 15,645 14,686 8 
Card fees10,823 9,186 10,950 11,325 12,297 (12)
Brokerage revenue10,604 9,984 12,398 11,106 11,071 (4)
Mortgage banking income31,229 23,530 12,227 9,287 10,351 202 
Capital markets income 5,690 6,050 11,243 8,972 7,396 (23)
Income from bank-owned life insurance7,778 7,756 6,038 5,620 5,139 51 
Investment securities (losses)/gains, net(1,550)69,409 8,734 (2,157)(3,731)nm
Gain on sale and fair value increase/(decrease) on private equity investments260 8,707 (4,255)8,100 1,194 nm
Other non-interest revenue15,879 8,345 10,659 7,672 7,405 114 
Total non-interest revenue114,411 173,484 103,857 97,955 88,760 29 
Non-interest expense:
Salaries and other personnel expense154,994 159,597 149,678 145,084 142,516 9 
Net occupancy, equipment, and software expense41,554 41,727 42,194 42,644 41,017 1 
Third-party processing and other services20,620 21,366 21,480 20,293 18,528 11 
Professional fees13,377 15,305 10,675 9,921 9,719 38 
FDIC insurance and other regulatory fees6,793 6,851 5,278 9,825 7,242 (6)
   Amortization of intangibles2,640 2,640 2,640 2,901 2,901 (9)
Goodwill impairment 44,877 — — — — nm
Merger-related expense— — — (913)353 nm
Earnout liability adjustments— 4,908 — — 10,457 nm
   Loss on early extinguishment of debt, net154 — 1,904 — 4,592 nm
   Valuation adjustment to Visa derivative — — — 1,111 2,500 nm
Restructuring charges 2,882 2,822 3,220 1,259 (66)nm
Other operating expenses28,764 28,925 39,210 33,996 36,551 (21)
Total non-interest expense316,655 284,141 276,279 266,121 276,310 15 
Income before income taxes131,363 124,058 42,116 206,632 186,985 (30)
Income tax expense39,789 30,866 3,595 54,948 51,259 (22)
Net income91,574 93,192 38,521 151,684 135,726 (33)
Less: Preferred stock dividends8,291 8,291 8,291 8,291 8,291 — 
Net income available to common shareholders$83,283 84,901 30,230 143,393 127,435 (35)%
Net income per common share, basic$0.57 0.58 0.21 0.98 0.84 (32)%
Net income per common share, diluted0.56 0.57 0.20 0.97 0.83 (32)
Cash dividends declared per common share0.33 0.33 0.33 0.30 0.30 10 
Return on average assets *0.69 %0.71 0.32 1.27 1.14 (45)bps
Return on average common equity *7.28 7.48 2.75 13.08 11.36 (408)
Weighted average common shares outstanding, basic147,314 147,288 147,311 146,948 152,238 (3)%
Weighted average common shares outstanding, diluted147,976 147,733 148,401 148,529 154,043 (4)
 nm - not meaningful
 bps - basis points
* - ratios are annualized




Synovus
BALANCE SHEET DATASeptember 30, 2020December 31, 2019September 30, 2019
(Unaudited)
(In thousands, except share data)
ASSETS
Cash and due from banks$578,026 $535,846 $611,496 
Interest-bearing funds with Federal Reserve Bank1,266,313 553,390 480,913 
Interest earning deposits with banks20,929 20,635 20,086 
Federal funds sold and securities purchased under resale agreements120,095 77,047 69,975 
Cash and cash equivalents1,985,363 1,186,918 1,182,470 
Investment securities available for sale, at fair value7,566,525 6,778,670 6,892,162 
Loans held for sale ($285,899, $115,173, and $129,415 measured at fair value, respectively)745,160 115,173 129,415 
Loans, net of deferred fees and costs39,549,847 37,162,450 36,417,826 
Allowance for loan losses(603,800)(281,402)(265,013)
Loans, net38,946,047 36,881,048 36,152,813 
Cash surrender value of bank-owned life insurance1,044,046 775,665 771,458 
Premises and equipment, net471,208 493,940 487,053 
Goodwill452,390 497,267 487,865 
Other intangible assets, net47,752 55,671 58,572 
Other assets1,782,047 1,418,930 1,499,374 
Total assets$53,040,538 $48,203,282 $47,661,182 
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest-bearing deposits$13,075,081 $9,439,485 $9,586,148 
Interest-bearing deposits31,590,823 28,966,019 27,846,922 
Total deposits44,665,904 38,405,504 37,433,070 
Federal funds purchased and securities sold under repurchase agreements202,344 165,690 197,419 
Other short-term borrowings400,000 1,753,560 2,233,593 
Long-term debt1,628,385 2,153,897 2,153,600 
Other liabilities1,079,363 782,941 774,662 
Total liabilities47,975,996 43,261,592 42,792,344 
Shareholders' equity:
Preferred stock - no par value. Authorized 100,000,000 shares; issued
22,000,000		537,145 537,145 536,550 
Common stock - $1.00 par value. Authorized 342,857,143 shares; issued 167,410,950, 166,800,623, and 166,201,048; outstanding 147,317,923, 147,157,596, and 147,594,000167,411 166,801 166,201 
Additional paid-in capital3,832,142 3,819,336 3,801,158 
Treasury stock, at cost – 20,093,027, 19,643,027, and 18,607,048 shares(731,806)(715,560)(680,081)
Accumulated other comprehensive income, net174,914 65,641 75,933 
Retained earnings1,084,736 1,068,327 969,077 
Total shareholders’ equity5,064,542 4,941,690 4,868,838 
Total liabilities and shareholders' equity$53,040,538 $48,203,282 $47,661,182 





Synovus
AVERAGE BALANCES AND YIELDS/RATES (1)
(Unaudited)20202019
(Dollars in thousands)
ThirdSecondFirstFourthThird
QuarterQuarterQuarterQuarterQuarter
Interest Earning Assets
Investment securities (2) (4)
$7,227,400 6,618,533 6,680,047 6,696,768 6,831,036 
Yield
2.39 %2.72 3.09 3.12 3.14 
Trading account assets (5)
$5,391 6,173 6,306 7,986 5,519 
Yield
1.69 %2.19 2.70 2.69 4.01 
Commercial loans (3) (4)
$30,730,135 30,236,919 27,607,343 26,698,202 26,567,719 
Yield
3.80 %3.95 4.57 4.82 5.09 
Consumer loans (3)
$9,032,437 9,899,172 9,985,702 9,809,832 9,633,603 
Yield
4.08 %4.34 4.60 5.07 5.08 
Allowance for loan losses
$(591,098)(498,545)(368,033)(269,052)(258,024)
Loans, net (3)
$39,171,474 39,637,546 37,225,012 36,238,982 35,943,298 
Yield
3.92 %4.08 4.62 4.93 5.13 
Mortgage loans held for sale
$244,952 221,157 86,415 117,909 99,556 
Yield
2.92 %3.09 3.67 3.77 3.93 
Other loans held for sale$493,940 19,246 — — 475 
Yield3.61 %4.19 — — — 
Federal funds sold, due from Federal Reserve Bank, and other short-term investments
$1,265,880 1,709,086 652,130 514,635 513,160 
Yield
0.11 %0.11 1.02 1.71 2.08 
Federal Home Loan Bank and Federal Reserve Bank Stock (5)
$200,923 247,801 284,082 278,586 254,994 
Yield
2.73 %3.60 3.38 2.85 3.85 
Total interest earning assets
$48,609,960 48,459,542 44,933,992 43,854,866 43,648,038 
Yield
3.58 %3.75 4.33 4.60 4.78 
Interest-Bearing Liabilities
Interest-bearing demand deposits
$7,789,095 7,260,940 6,445,986 6,381,282 6,138,810 
Rate
0.19 %0.21 0.51 0.60 0.69 
Money Market accounts
$13,272,972 12,238,479 11,548,014 10,526,296 10,138,783 
Rate
0.36 %0.46 1.00 1.13 1.26 
Savings deposits
$1,114,956 1,036,024 926,822 915,640 900,366 
Rate
0.02 %0.02 0.05 0.05 0.05 
Time deposits under $100,000
$1,379,923 1,621,943 1,761,741 1,873,350 2,100,492 
Rate
1.03 %1.43 1.64 1.27 1.39 
Time deposits over $100,000
$3,863,821 4,772,555 5,051,705 5,198,266 5,957,691 
Rate
1.44 %1.80 2.04 1.51 1.69 
Other brokered deposits
$1,912,114 1,998,571 1,376,669 1,156,131 993,078 
Rate
0.23 %0.25 1.42 1.84 2.47 
Brokered time deposits
$2,232,940 2,244,429 2,166,496 2,121,069 2,119,149 
Rate
1.59 %1.86 2.11 2.16 2.27 
Total interest-bearing deposits
$31,565,821 31,172,941 29,277,433 28,172,034 28,348,369 
Rate
0.54 %0.73 1.18 1.16 1.32 
Federal funds purchased and securities sold under repurchase agreements
$180,342 250,232 167,324 192,731 221,045 
Rate
0.09 %0.12 0.30 0.24 0.22 
Other short-term borrowings
$46,739 550,000 1,384,362 1,565,507 1,307,370 
Rate
1.12 %1.23 1.66 1.87 2.31 
Long-term debt
$2,234,665 2,834,188 2,678,651 2,153,983 2,286,221 
Rate
2.71 %2.36 2.78 3.07 3.32 
Total interest-bearing liabilities
$34,027,567 34,807,361 33,507,770 32,084,255 32,163,005 
Rate
0.68 %0.86 1.30 1.30 1.47 
Non-interest-bearing demand deposits
$12,773,676 11,923,534 9,409,774 9,706,784 9,365,776 
Cost of funds
0.50 %0.65 1.04 1.02 1.16 
Net interest margin
3.10 %3.13 3.37 3.65 3.69 
Taxable equivalent adjustment (4)
$956 861 786 769 819 
(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 21%, 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 BY TYPE
(Unaudited)Total LoansTotal LoansLinked QuarterTotal LoansYear/Year
(Dollars in thousands)
Loan TypeSeptember 30, 2020June 30, 2020% Change September 30, 2019% Change
Commercial, Financial, and Agricultural$13,120,038 $13,136,696 — %$9,846,830 33 %
Owner-Occupied6,894,113 6,801,580 1 6,571,485 5 
Total Commercial & Industrial20,014,151 19,938,276 — 16,418,315 22 
Multi-Family2,365,118 2,252,820 5 2,063,808 15 
Hotels1,409,424 1,364,511 3 1,267,790 11 
Office Buildings2,313,346 2,297,721 1 2,161,258 7 
Shopping Centers1,698,993 1,738,504 (2)1,699,656 — 
Warehouses730,253 781,252 (7)673,780 8 
Other Investment Property1,145,313 1,012,392 13 977,253 17 
Total Investment Properties9,662,447 9,447,200 2 8,843,545 9 
1-4 Family Construction180,406 229,999 (22)288,897 (38)
1-4 Family Investment Mortgage474,632 466,809 2 516,859 (8)
Total 1-4 Family Properties655,038 696,808 (6)805,756 (19)
Commercial Development111,493 112,539 (1)124,213 (10)
Residential Development260,313 270,952 (4)218,991 19 
Land Acquisition276,584 300,036 (8)320,485 (14)
Land and Development648,390 683,527 (5)663,689 (2)
Total Commercial Real Estate10,965,875 10,827,535 1 10,312,990 6 
Consumer Mortgages5,658,525 5,811,376 (3)5,470,730 3 
Home Equity Lines1,615,207 1,710,264 (6)1,675,092 (4)
Credit Cards264,829 250,448 6 267,874 (1)
Other Consumer Loans1,130,237 1,474,583 (23)2,295,486 (51)
Total Consumer8,668,798 9,246,671 (6)9,709,182 (11)
Unearned Income(98,977)(98,185)1 (22,661)337 
Total$39,549,847 $39,914,297 (1)%$36,417,826 9 %
NON-PERFORMING LOANS COMPOSITION
(Unaudited)Total
Non-performing Loans		Total
Non-performing Loans		Linked QuarterTotal
Non-performing Loans		Year/Year
(Dollars in thousands)
Loan TypeSeptember 30, 2020June 30, 2020% ChangeSeptember 30, 2019% Change
Commercial, Financial, and Agricultural$95,365 $83,000 15 %$73,672 29 %
Owner-Occupied20,261 19,605 3 9,222 120 
Total Commercial & Industrial115,626 102,605 13 82,894 39 
Multi-Family157 — nm— nm
Office Buildings27,608 836 nm290 nm
Shopping Centers257 409 (37)140 84 
Other Investment Property238 393 (39)— nm
Total Investment Properties28,260 1,638 nm430 nm
1-4 Family Construction1,556 2,593 (40)698 123 
1-4 Family Investment Mortgage1,815 1,844 (2)1,520 19 
Total 1-4 Family Properties3,371 4,437 (24)2,218 52 
Commercial Development833 840 (1)87 nm
Residential Development648 685 (5)1,526 (58)
Land Acquisition910 1,042 (13)1,419 (36)
Land and Development2,391 2,567 (7)3,032 (21)
Total Commercial Real Estate34,022 8,642 294 5,680 499 
Consumer Mortgages7,433 17,438 (57)10,015 (26)
Home Equity Lines10,297 14,200 (27)12,590 (18)
Other Consumer Loans1,459 4,552 (68)4,736 (69)
Total Consumer19,189 36,190 (47)27,341 (30)
Total$168,837 $147,437 15 %$115,915 46 %




Synovus
CREDIT QUALITY DATA
(Unaudited)
(Dollars in thousands)20202019Third Quarter
ThirdSecondFirstFourthThird'20 vs '19
QuarterQuarterQuarterQuarterQuarter% Change
Non-performing Loans (NPLs)$168,837 147,437 156,287 101,636 115,915 46 %
Other Real Estate and Other Assets23,280 30,242 33,679 35,810 35,400 (34)
Non-performing Assets (NPAs)192,117 177,679 189,966 137,446 151,315 27 
Allowance for Loan Losses (ALL)603,800 588,648 493,452 281,402 265,013 128 
Reserve for Unfunded Commitments60,794 61,029 38,420 1,375 1,496 nm
Allowance for Credit Losses (ACL)
664,594 649,677 531,872 282,777 266,509 149 
Net Charge-Offs - Quarter28,466 24,046 20,061 8,821 19,925 
Net Charge-Offs - YTD72,573 44,107 20,061 57,612 48,792 
Net Charge-Offs / Average Loans - Quarter (1)
0.29 %0.24 0.21 0.10 0.22 
Net Charge-Offs / Average Loans - YTD (1)
0.25 0.23 0.21 0.16 0.18 
NPLs / Loans0.43 0.37 0.41 0.27 0.32 
NPAs / Loans, ORE and specific other assets0.49 0.44 0.50 0.37 0.42 
ACL/Loans1.68 1.63 1.39 0.76 0.73 
ALL/Loans1.53 1.47 1.29 0.76 0.73 
ACL/NPLs393.63 440.65 340.32 278.23 229.92 
ALL/NPLs357.62 399.25 315.74 276.87 228.63 
Past Due Loans over 90 days and Still Accruing$5,157 8,391 6,398 15,943 15,660 (67)
As a Percentage of Loans Outstanding0.01 %0.02 0.02 0.04 0.04 
Total Past Due Loans and Still Accruing$53,177 46,390 83,235 123,793 88,219 (40)
As a Percentage of Loans Outstanding0.13 %0.12 0.22 0.33 0.24 
Accruing Troubled Debt Restructurings (TDRs)$163,511 166,461 160,128 133,145 130,019 26 
(1) Ratio is annualized.
SELECTED CAPITAL INFORMATION (1)
(Unaudited)
(Dollars in thousands)
September 30, 2020December 31, 2019September 30, 2019
Tier 1 Capital$4,454,365 4,280,604 4,196,628 
Total Risk-Based Capital5,541,385 5,123,381 5,023,138 
Common Equity Tier 1 Capital Ratio9.30 %8.95 8.96 
Tier 1 Capital Ratio10.58 10.23 10.27 
Total Risk-Based Capital Ratio13.16 12.25 12.30 
Tier 1 Leverage Ratio8.49 9.16 9.02 
Common Equity as a Percentage of Total Assets (2)
8.54 9.14 9.09 
Tangible Common Equity Ratio (3) (5)
7.67 8.08 8.04 
Book Value Per Common Share (4)
$30.73 29.93 29.35 
Tangible Book Value Per Common Share (3)
27.34 26.17 25.65 
(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) See "Non-GAAP Financial Measures" of this report for applicable reconciliation.


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