Synovus Announces Earnings for the First Quarter - Synovus Finl (NYSE:SNV)

COLUMBUS, Ga.--(BUSINESS WIRE)--

Synovus Financial Corp. SNV today reported financial results for the quarter ended March 31, 2015.

First Quarter Highlights

Net income available to common shareholders for the first quarter 2015 was $51.4 million or $0.38 per diluted share as compared to $50.6 million, or $0.37 per diluted share for the previous quarter and $45.9 million, or $0.33 per diluted share for the first quarter 2014.
Total average loans grew $254.1 million or 4.9% annualized from the previous quarter and $1.03 billion or 5.1% as compared to the first quarter 2014.
Average core deposits grew $286.6 million or 5.9% annualized from the previous quarter and $529.8 million or 2.7% as compared to the first quarter 2014.
Adjusted pre-tax, pre-credit costs income was $101.0 million for the first quarter 2015, an increase of $1.4 million from $99.6 million for the previous quarter and an increase of $4.5 million or 4.7% as compared to the first quarter 2014.
The company continued to return capital to shareholders during the quarter, acquiring an additional $59.1 million of common stock. Since October 2014 through April 20, 2015, the company has repurchased $160.0 million of common stock, reducing total share count by 6.0 million or 4.3%.

"Growth in average loans and core deposits, continued improvement in credit quality, and a disciplined focus on expense management contributed to a solid first quarter," said Kessel D. Stelling, Synovus Chairman and CEO. "Investments in key talent as well as new and existing business lines continue to pay dividends as evidenced by revenue growth in mortgage banking, brokerage, and SBA lending. Our senior housing, equipment finance, and medical office specialty lines also experienced significant loan growth during the quarter. As we move forward, our team remains committed to improving the customer experience and building a more profitable, efficient, and competitive bank."

Balance Sheet

Total loans ended the quarter at $21.11 billion, up $8.5 million from the previous quarter and up $947.2 million or 4.7% as compared to the first quarter 2014.
- Commercial and industrial loans grew by $33.8 million from the previous quarter and $346.6 million or 3.5% as compared to the first quarter 2014.
- Commercial real estate loans declined by $13.2 million from the previous quarter and increased by $319.8 million or 4.9% as compared to the first quarter 2014.
  - Residential C&D and land acquisition portfolios declined by $19.4 million.
- Retail loans declined by $13.4 million from the previous quarter and increased by $281.8 million or 7.7% as compared to the first quarter 2014.
Total average loans grew $254.1 million or 4.9% annualized from the previous quarter and $1.03 billion or 5.1% as compared to the first quarter 2014.
Total average deposits for the quarter were $21.62 billion, and grew by $279.0 million or 5.3% annualized from the previous quarter and $889.8 million or 4.3% as compared to the first quarter 2014.
Average core deposits for the quarter were $20.02 billion, and grew by $286.6 million or 5.9% annualized from the previous quarter and $529.8 million or 2.7% as compared to the first quarter 2014.
Average core deposits, excluding state, county, and municipal deposits, grew by $247.1 million or 5.7% annualized from the previous quarter and $670.7 million or 3.9% as compared to the first quarter 2014.
- Average non-interest bearing demand deposit accounts increased 4.5% annualized from the previous quarter and 10.8% as compared to the first quarter 2014.
- Average money market deposits increased 10.1% annualized from the previous quarter and 2.9% as compared to the first quarter 2014.

Core Performance

Adjusted pre-tax, pre-credit costs income was $101.0 million for the first quarter 2015, an increase of $1.4 million from $99.6 million for the previous quarter and an increase of $4.5 million or 4.7% as compared to the first quarter 2014.

Net interest income was $203.3 million for the first quarter 2015, down $4.2 million from $207.5 million in the previous quarter and up $2.7 million or 1.4% as compared to the first quarter 2014.
The net interest margin declined six basis points to 3.28% compared to 3.34% in the previous quarter. The yield on earning assets was 3.73%, five basis points lower than the previous quarter, and the effective cost of funds increased 1 basis point to 0.45%.
Adjusted non-interest income was $65.1 million, up $580 thousand or 0.9% compared to $64.5 million for the previous quarter and up $2.1 million or 3.3% as compared to the first quarter 2014.
- Mortgage banking income increased $1.6 million or 32.5% from the previous quarter, driven by an 18.6% increase in production.
- Financial Management Services revenues, consisting primarily of fiduciary and asset management fees and brokerage revenue, increased $690 thousand or 3.5% from the previous quarter, driven by a $363 thousand or 5.3% increase in brokerage revenue.
- Core banking fees¹ were $31.5 million, down $1.5 million or 4.6% from the previous quarter, driven by seasonality.
- Gains from the sale of SBA loans of $1.5 million were up $829 thousand from the previous quarter.

Total non-interest expense for the first quarter 2015 was $178.9 million, down $6.0 million from the previous quarter and down $5.3 million or 2.9% as compared to the first quarter 2014.
Adjusted non-interest expense for the first quarter 2015 was $167.4 million, down $5.0 million or 2.9% from the previous quarter and flat as compared to the first quarter 2014.
- Employment expense of $96.5 million increased $4.4 million from the previous quarter driven by seasonally higher employment taxes.
- Professional fees of $5.6 million decreased $2.4 million from the previous quarter.
- Advertising expense of $3.4 million decreased $4.7 million from the previous quarter.
- FDIC insurance and other regulatory fees of $7.0 million decreased $1.2 million from the previous quarter.

Credit Quality

Broad-based improvement in credit quality continued.

Total credit costs were $15.7 million in the first quarter 2015 compared to $16.4 million in the previous quarter.
Non-performing loans, excluding loans held for sale, were $194.2 million at March 31, 2015, down $3.5 million or 1.8% from the previous quarter, and down $190.1 million or 49.5% from March 31, 2014. The non-performing loan ratio was 0.92% at March 31, 2015, compared to 0.94% at the end of the previous quarter and 1.91% at March 31, 2014.
Total non-performing assets were $270.1 million at March 31, 2015, down $16.7 million or 5.8% from the previous quarter, and down $228.1 million or 45.8% from March 31, 2014. The non-performing asset ratio was 1.28% at March 31, 2015, compared to 1.35% at the end of the previous quarter and 2.46% at March 31, 2014.
Total delinquencies (consisting of loans 30 or more days past due and still accruing) remain low at 0.27% of total loans at March 31, 2015 compared to 0.24% the previous quarter and 0.37% at March 31, 2014. Total loans past due 90 days or more and still accruing were 0.02% of total loans at March 31, 2015, unchanged from December 31, 2014 and compared to 0.03% at March 31, 2014.
Net charge-offs were $12.3 million in the first quarter 2015, down $3.9 million or 24.1% from $16.3 million in the previous quarter. The annualized net charge-off ratio was 0.23% in the first quarter compared to 0.31% in the previous quarter.

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.

Capital Ratios

Capital ratios remained strong and include the impact of common stock repurchases completed through March 31, 2015. March 31, 2015 ratios are Basel III transitional, and ratios prior to March 31, 2015 were based on Basel I rules.

Common Equity Tier 1 ratio was 10.78% at March 31, 2015.
Tier 1 Capital ratio was 10.78% at March 31, 2015 compared to 10.86% at December 31, 2014.
Total Risk Based Capital ratio was 12.64% at March 31, 2015 compared to 12.75% at December 31, 2014.
Tier 1 Leverage ratio was 9.65% at March 31, 2015 compared to 9.67% at December 31, 2014.
Tangible Common Equity ratio was 10.43% at March 31, 2015 compared to 10.69% at December 31, 2014.

First Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on April 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. 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 $28 billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services to customers through 28 locally-branded divisions, 258 branches, and 343 ATMs in Georgia, Alabama, South Carolina, Florida, and Tennessee. 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 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; average non-interest bearing demand deposit accounts (DDAs) excluding average state, county, and municipal non-interest bearing DDAs; average money market deposits excluding average state, county, and municipal money market deposits; tangible common equity to tangible assets ratio; 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; 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; 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; average non-interest bearing DDAs excluding average state, county, and municipal non-interest bearing DDAs; average money market deposits excluding average state, county, and municipal money market deposits; tangible common equity to tangible assets ratio; 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; income before income taxes; total non-interest income; and total non-interest expense are set forth in the tables below.



Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)	1Q15			4Q14		3Q14		2Q14		1Q14

Average core deposits
Average core deposits excluding state, county, and municipal deposits
Average non-interest bearing demand deposit accounts (DDAs) excluding average state, county, and municipal non-interest bearing DDAs
Average money market deposits excluding average state, county, and municipal money market deposits
Average total deposits	$	21,615,049		21,336,007		20,938,587		20,863,706		20,725,259
Subtract: Average brokered deposits		(1,594,822	)	(1,602,354	)	(1,494,620	)	(1,401,167	)	(1,234,847	)
Average core deposits		20,020,227		19,733,653		19,443,967		19,462,539		19,490,412
Subtract: Average state, county, and municipal deposits		(2,224,193	)	(2,184,757	)	(2,045,817	)	(2,268,852	)	(2,365,096	)
Average core deposits excluding state, county, and municipal deposits	$	17,796,034		17,548,896		17,398,150		17,193,687		17,125,316

Average non-interest bearing DDAs	$	6,108,558		6,110,047		5,765,287		5,824,592		5,537,090
Subtract: Average state, county, and municipal non-interest bearing DDAs		(734,177	)	(794,852	)	(743,145	)	(654,228	)	(685,070	)
Average non-interest bearing DDAs excluding average state, county, and municipal non-interest bearing DDAs	$	5,374,381		5,315,195		5,022,142		5,170,364		4,852,020

Average money market deposits	$	6,210,704		6,009,897		6,033,523		6,044,138		6,077,357
Subtract: Average state, county, and municipal money market deposits		(415,800	)	(356,343	)	(397,480	)	(371,538	)	(444,170	)
Average money market deposits excluding average state, county, and municipal money market deposits	$	5,794,904		5,653,554		5,636,043		5,672,600		5,633,187

Tangible common equity to tangible assets ratio
Total assets	$	27,633,784		27,051,231		26,519,110		26,627,290		26,435,426
Subtract: Goodwill		(24,431	)	(24,431	)	(24,431	)	(24,431	)	(24,431	)
Subtract: Other intangible assets, net		(1,061	)	(1,265	)	(1,471	)	(1,678	)	(1,883	)
Tangible assets		27,608,292		27,025,535		26,493,208		26,601,181		26,409,112

Total shareholders' equity		3,030,635		3,041,270		3,076,545		3,053,051		2,998,496
Subtract: Goodwill		(24,431	)	(24,431	)	(24,431	)	(24,431	)	(24,431	)
Subtract: Other intangible assets, net		(1,061	)	(1,265	)	(1,471	)	(1,678	)	(1,883	)
Subtract: Series C Preferred Stock, no par value		(125,980	)	(125,980	)	(125,980	)	(125,980	)	(125,980	)
Tangible common equity	$	2,879,163		2,889,594		2,924,663		2,900,962		2,846,202
Total shareholders' equity to total assets ratio		10.97	%	11.24	%	11.60		11.47		11.34
Tangible common equity to tangible assets ratio		10.43	%	10.69	%	11.04		10.91		10.78

Reconciliation of Non-GAAP Financial Measures, continued
(dollars in thousands)	1Q15			4Q14		3Q14		2Q14		1Q14

Adjusted Pre-tax, Pre-credit Costs Income
Income before income taxes	$	85,812		78,928		72,656		73,950		77,024
Add: Provision for losses on loans		4,397		8,193		3,843		12,284		9,511
Add: Other credit costs⁽¹⁾		11,272		8,213		11,858		4,635		8,128
Add: Restructuring charges		(107	)	3,484		809		7,716		8,577
Add: Litigation settlement expenses ⁽²⁴⁾		-		463		12,349		-		-
Subtract: Investment securities gains, net		(725	)	-		-		-		(1,331	)
Add: Visa indemnification charges		375		310		1,979		356		396
Subtract: Gain on sale of Memphis branches, net ⁽³⁾		-		-		-		-		(5,789	)
Pre-tax, pre-credit costs income	$	101,025		99,591		103,494		98,941		96,516

Adjusted Non-interest Income
Total non-interest income	$	65,854		64,549		63,985		63,388		70,182
Subtract: Investment securities gains, net		(725	)	-		-		-		(1,331	)
Subtract: Gain on sale of Memphis branches, net⁽³⁾		-		-		-		-		(5,789	)
Adjusted non-interest income	$	65,129		64,549		63,985		63,388		63,062

Adjusted Non-interest Expense
Total non-interest expense	$	178,908		184,883		193,749		182,205		184,161
Subtract: Other credit costs⁽¹⁾		(11,272	)	(8,213	)	(11,858	)	(4,635	)	(8,128	)
Subtract: Restructuring charges		107		(3,484	)	(809	)	(7,716	)	(8,577	)
Subtract: Visa indemnification charges		(375	)	(310	)	(1,979	)	(356	)	(396	)
Subtract: Litigation settlement expenses ⁽²⁾		-		(463	)	(12,349	)	-		-
Adjusted non-interest expense	$	167,367		172,413		166,754		169,498		167,060

⁽¹⁾ Other credit costs consist primarily of foreclosed real estate expense, net.
⁽²⁾Amounts consist of litigation settlement expenses with respect to certain legal matters. Amounts for other periods presented herein are not reported separately as amounts are not material.
⁽³⁾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.


Synovus

		INCOME STATEMENT DATA
		(Unaudited)
		(In thousands, except per share data)		2015				2014			1st Quarter

				First			Fourth	Third	Second	First	'15 vs. '14
				Quarter			Quarter	Quarter	Quarter	Quarter	Change

		Interest income	$	231,401			234,703	233,394	232,213	228,382	1.3		%
		Interest expense		28,138			27,248	27,131	27,162	27,868	1.0


		Net interest income		203,263			207,455	206,263	205,051	200,514	1.4
		Provision for loan losses		4,397			8,193	3,843	12,284	9,511	(53.8	)


		Net interest income after provision for loan losses		198,866			199,262	202,420	192,767	191,003	4.1


		Non-interest income:
		Service charges on deposit accounts		19,133			20,287	20,159	19,238	19,214	(0.4	)
		Fiduciary and asset management fees		11,571			11,690	11,207	11,296	11,033	4.9
		Brokerage revenue		7,251			6,887	7,281	6,707	6,213	16.7
		Mortgage banking income		6,484			4,895	4,665	5,283	3,511	84.7
		Bankcard fees		8,077			8,536	8,182	8,695	7,518	7.4
		Investment securities gains, net		725			-	-	-	1,331	(45.5	)
		Other fee income		5,246			4,635	4,704	4,928	4,863	7.9
		Gain on sale of Memphis branches, net ⁽¹⁾		-			-	-	-	5,789	nm
		Other non-interest income		7,367			7,619	7,787	7,241	10,710	(31.2	)


		Total non-interest income		65,854			64,549	63,985	63,388	70,182	(6.2	)

		Non-interest expense:
		Salaries and other personnel expense		96,488			92,049	93,870	92,540	93,445	3.3
		Net occupancy and equipment expense		26,172			26,370	26,956	26,425	26,056	0.4
		Third-party processing expense		10,343			10,437	10,044	9,464	10,097	2.4
		FDIC insurance and other regulatory fees		6,957			8,262	8,013	8,049	9,719	(28.4	)
		Professional fees		5,594			8,013	2,526	8,224	7,677	(27.1	)
		Advertising expense		3,443			8,102	7,177	6,281	2,477	39.0
		Foreclosed real estate expense, net		9,496			6,502	9,074	4,063	5,681	67.2
		Visa indemnification charges		375			310	1,979	356	396	(5.3	)
		Litigation settlement expenses ⁽²⁾		-			463	12,349	-	-	-
		Restructuring charges, net		(107	)		3,484	809	7,716	8,577	nm
		Other operating expenses		20,147			20,891	20,952	19,087	20,036	0.6

		Total non-interest expense		178,908			184,883	193,749	182,205	184,161	(2.9	)



		Income before income taxes		85,812			78,928	72,656	73,950	77,024	11.4
		Income tax expense		31,849			25,757	25,868	27,078	28,608	11.3


		Net income		53,963			53,171	46,788	46,872	48,416	11.5

		Dividends on preferred stock		2,559			2,559	2,559	2,559	2,559	-

		Net income available to common shareholders	$	51,404			50,612	44,229	44,313	45,857	12.1		%

		Net income per common share, basic ⁽³⁾	$	0.38			0.37	0.32	0.32	0.33	15.4		%

		Net income per common share, diluted ⁽³⁾		0.38			0.37	0.32	0.32	0.33	15.2

		Cash dividends declared per common share ⁽³⁾		0.10			0.10	0.07	0.07	0.07	42.9

		Return on average assets		0.80		%	0.79	0.70	0.71	0.75	6.7
		Return on average common equity		7.16			6.89	5.97	6.14	6.52	9.8

		Weighted average common shares outstanding, basic ⁽³⁾		134,933			137,031	139,043	138,991	138,932	(2.9	)	%
		Weighted average common shares outstanding, diluted ⁽³⁾		135,744			137,831	139,726	139,567	139,504	(2.7	)

nm - not meaningful
* - ratios are annualized

(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	)	Amounts consist of litigation settlement expenses 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 1Q14 has been restated to reflect the 1-for-7 reverse stock split which was effective on May 16, 2014.


Synovus

	BALANCE SHEET DATA		March 31, 2015	December 31, 2014	March 31, 2014
	(Unaudited)

	(In thousands, except share data)

	ASSETS
	Cash and cash equivalents	$	429,338	485,489	460,618
	Interest bearing funds with Federal Reserve Bank		1,263,886	721,362	884,743
	Interest earning deposits with banks		6,871	11,810	9,139
	Federal funds sold and securities purchased under resale agreements		80,772	73,111	76,097
	Trading account assets, at fair value		20,002	13,863	17,808
	Mortgage loans held for sale, at fair value		89,245	63,328	50,390
	Investment securities available for sale, at fair value		3,130,041	3,041,406	3,132,402

	Loans, net of deferred fees and costs		21,106,213	21,097,699	20,159,004
	Allowance for loan losses		(253,371)	(261,317)	(300,871)
	Loans, net		20,852,842	20,836,382	19,858,133

	Premises and equipment, net		451,843	455,235	467,375
	Goodwill		24,431	24,431	24,431
	Other real estate		74,791	85,472	110,757
	Deferred tax asset, net		589,190	622,464	712,130
	Other assets		620,532	616,878	631,403

	Total assets	$	27,633,784	27,051,231	26,435,426


	LIABILITIES AND SHAREHOLDERS' EQUITY
	Liabilities:
	Deposits:
	Non-interest bearing deposits	$	6,251,393	6,228,472	5,870,570
	Interest bearing deposits, excluding brokered deposits		14,251,510	13,660,830	13,714,382
	Brokered deposits		1,604,946	1,642,398	1,365,939

	Total deposits		22,107,849	21,531,700	20,950,891

	Federal funds purchased and securities sold under repurchase agreements		125,323	126,916	164,946
	Long-term debt		2,189,769	2,140,319	2,106,980
	Other liabilities		180,208	211,026	214,113

	Total liabilities		24,603,149	24,009,961	23,436,930



	Shareholders' equity:
	Series C Preferred Stock - no par value, 5,200,000 shares outstanding at March 31, 2015, December 31, 2014, and March 31, 2014		125,980	125,980	125,980
	Common stock - $1.00 par value. 133,929,630 shares outstanding at March 31, 2015, 136,122,843 shares outstanding at December 31, 2014, and 138,972,324 shares outstanding at March 31, 2014⁽¹⁾		140,329	139,950	139,786
	Additional paid-in capital		2,976,882	2,960,825	2,976,193
	Treasury stock, at cost - 6,399,177 shares at March 31, 2015, 3,827,579 shares at December 31, 2014, and 813,350 at March 31, 2014 ⁽¹⁾		(261,402)	(187,774)	(114,176)
	Accumulated other comprehensive loss, net		(3,651)	(12,605)	(30,463)
	Retained earnings (deficit)		52,497	14,894	(98,824)
	Total shareholders' equity		3,030,635	3,041,270	2,998,496

	Total liabilities and shareholders' equity	$	27,633,784	27,051,231	26,435,426

(1)	Share and per share data for 1Q14 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)
				2015			2014

				First		Fourth	Third	Second	First
				Quarter		Quarter	Quarter	Quarter	Quarter

	Interest Earning Assets

	Taxable investment securities ⁽²⁾		$	2,998,597		3,027,769	3,035,940	3,091,537	3,181,678
		Yield		1.85	%	1.85	1.84	1.87	1.91

	Tax-exempt investment securities ^{(2) (4)}		$	4,967		5,030	5,168	5,781	6,421
		Yield (taxable equivalent)		6.21	%	6.19	6.21	6.23	6.24

	Trading account assets		$	14,188		12,879	16,818	16,011	20,346
		Yield		3.02	%	3.08	2.52	2.25	3.16

	Commercial loans ^{(3) (4)}		$	17,176,641		16,956,294	16,603,287	16,673,930	16,451,594
		Yield		4.06	%	4.09	4.17	4.19	4.21

	Consumer loans ⁽³⁾		$	3,929,188		3,895,397	3,814,160	3,695,010	3,628,347
		Yield		4.45	%	4.42	4.44	4.51	4.53

	Allowance for loan losses		$	(257,167)		(268,659)	(274,698)	(293,320)	(307,078)

	Loans, net ⁽³⁾		$	20,848,662		20,583,032	20,142,749	20,075,620	19,772,863
		Yield		4.19	%	4.22	4.29	4.32	4.34

	Mortgage loans held for sale		$	64,507		60,892	70,766	59,678	38,699
		Yield		3.92	%	3.84	3.96	4.13	4.15

	Federal funds sold, due from Federal Reserve Bank,
	and other short-term investments		$	1,123,250		898,871	974,363	843,018	935,300
		Yield		0.24	%	0.23	0.23	0.23	0.23

	Federal Home Loan Bank and Federal Reserve Bank stock ⁽⁵⁾		$	80,813		75,547	78,131	76,172	82,585
		Yield		3.90	%	4.53	3.57	4.15	3.21

	Total interest earning assets		$	25,134,984		24,664,020	24,323,935	24,167,817	24,037,892
		Yield		3.73	%	3.78	3.81	3.86	3.86


	Interest Bearing Liabilities


	Interest bearing demand deposits		$	3,800,476		3,781,389	3,722,599	3,830,956	3,878,590
		Rate		0.19	%	0.19	0.19	0.19	0.19

	Money market accounts		$	6,210,704		6,009,897	6,044,138	6,033,523	6,077,357
		Rate		0.32	%	0.29	0.29	0.31	0.32

	Savings deposits		$	649,597		638,813	645,654	644,103	616,962
		Rate		0.05	%	0.07	0.07	0.09	0.10

	Time deposits under $100,000		$	1,324,513		1,315,905	1,335,848	1,364,322	1,423,487
		Rate		0.61	%	0.57	0.56	0.57	0.59

	Time deposits over $100,000		$	1,926,380		1,877,602	1,871,136	1,824,349	1,956,925
		Rate		0.80	%	0.76	0.75	0.74	0.76

	Brokered money market accounts		$	181,754		191,103	174,538	184,233	207,681
		Rate		0.30	%	0.28	0.27	0.27	0.26

	Brokered time deposits		$	1,413,068		1,411,252	1,320,082	1,216,934	1,027,167
		Rate		0.63	%	0.58	0.52	0.51	0.62

	Total interest bearing deposits		$	15,506,492		15,225,961	15,113,995	15,098,420	15,188,169
		Rate		0.39	%	0.36	0.35	0.36	0.38

	Federal funds purchased and securities sold under
	repurchase agreements		$	222,658		186,993	171,429	219,490	215,027
		Rate		0.08	%	0.07	0.08	0.13	0.14

	Long-term debt		$	2,207,215		2,084,636	2,142,705	2,099,578	2,156,836
		Rate		2.41	%	2.55	2.54	2.58	2.52


	Total interest bearing liabilities		$	17,936,365		17,497,590	17,428,129	17,417,488	17,560,032
		Rate		0.63	%	0.62	0.62	0.62	0.64


	Non-interest bearing demand deposits		$	6,108,558		6,110,047	5,824,592	5,765,287	5,537,090

	Effective cost of funds			0.45	%	0.44	0.44	0.45	0.47


	Net interest margin			3.28	%	3.34	3.37	3.41	3.39

	Taxable equivalent adjustment		$	349		372	408	443	455

	(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)


			March 31, 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	$	1,227,449	5.8	%	$	223		0.1	%
	Hotels		635,646	3.0			417		0.2
	Office Buildings		1,282,294	6.1			486		0.3
	Shopping Centers		876,667	4.2			5,237		2.7
	Commercial Development		123,679	0.6			11,644		6.0
	Warehouses		533,387	2.5			412		0.2
	Other Investment Property		544,941	2.6			1,361		0.7


	Total Investment Properties		5,224,063	24.8			19,780		10.2


	1-4 Family Construction		153,272	0.7			297		0.2
	1-4 Family Investment Mortgage		800,648	3.8			9,573		4.9
	Residential Development		169,695	0.8			12,956		6.7


	Total 1-4 Family Properties		1,123,615	5.3			22,826		11.8


	Land Acquisition		559,337	2.6			31,444		16.2


	Total Commercial Real Estate		6,907,015	32.7			74,050		38.2


	Commercial, Financial, and Agricultural		6,218,171	29.4			42,060		21.6
	Owner-Occupied		4,089,663	19.4			31,626		16.3


	Total Commercial & Industrial		10,307,834	48.8			73,686		37.9


	Home Equity Lines		1,672,038	7.9			18,933		9.7
	Consumer Mortgages		1,702,388	8.1			25,351		13.1
	Credit Cards		242,257	1.2			-		-
	Other Retail Loans		304,049	1.4			2,212		1.1


	Total Retail		3,920,732	18.6			46,496		23.9


	Unearned Income		(29,368)	(0.1)			-		nm


	Total	$	21,106,213	100.0	%	$	194,232		100.0	%


	LOANS OUTSTANDING BY TYPE COMPARISON
	(Unaudited)
	(Dollars in thousands)

			Total Loans				1Q15 vs. 4Q14				1Q15 vs. 1Q14
	Loan Type		March 31, 2015	December 31, 2014			% change ⁽¹⁾		March 31, 2014		% change



	Multi-Family	$	1,227,449	1,205,095			7.5	%	988,290		24.2	%
	Hotels		635,646	698,746			(36.6)		702,934		(9.6)
	Office Buildings		1,282,294	1,192,600			30.5		964,129		33.0
	Shopping Centers		876,667	881,821			(2.4)		850,649		3.1
	Commercial Development		123,679	121,990			5.6		149,038		(17.0)
	Warehouses		533,387	561,508			(20.3)		574,059		(7.1)
	Other Investment Property		544,941	548,011			(2.3)		514,084		6.0


	Total Investment Properties		5,224,063	5,209,771			1.1		4,743,183		10.1


	1-4 Family Construction		153,272	148,821			12.1		141,060		8.7
	1-4 Family Investment Mortgage		800,648	808,770			(4.1)		841,942		(4.9)
	Residential Development		169,695	177,216			(17.2)		186,558		(9.0)


	Total 1-4 Family Properties		1,123,615	1,134,807			(4.0)		1,169,560		(3.9)

	Land Acquisition		559,337	575,670			(11.5)		674,511		(17.1)


	Total Commercial Real Estate		6,907,015	6,920,248			(0.8)		6,587,254		4.9


	Commercial, Financial, and Agricultural		6,218,171	6,224,348			(0.4)		5,960,435		4.3
	Owner-Occupied		4,089,663	4,049,725			4.0		4,000,847		2.2


	Total Commercial & Industrial		10,307,834	10,274,073			1.3		9,961,282		3.5


	Home Equity Lines		1,672,038	1,683,998			(2.9)		1,601,757		4.4
	Consumer Mortgages		1,702,388	1,694,061			2.0		1,504,213		13.2
	Credit Cards		242,257	253,649			(18.2)		253,149		(4.3)
	Other Retail Loans		304,049	302,460			2.1		279,785		8.7


	Total Retail		3,920,732	3,934,168			(1.4)		3,638,904		7.7


	Unearned Income		(29,368)	(30,790)			(18.7)		(28,436)		3.3


	Total	$	21,106,213	21,097,699			0.2	%	20,159,004		4.7	%

(1) Percentage change is annualized.


Synovus

	CREDIT QUALITY DATA
	(Unaudited)
	(Dollars in thousands)
			2015			2014			1st Quarter
			First		Fourth	Third	Second	First	'15 vs. '14
			Quarter		Quarter	Quarter	Quarter	Quarter	Change

	Non-performing Loans	$	194,232		197,757	242,382	259,547	384,324	(49.5)	%
	Other Loans Held for Sale ⁽¹⁾		1,082		3,606	338	2,045	3,120	(65.3)
	Other Real Estate		74,791		85,472	81,636	101,533	110,757	(32.5)
	Non-performing Assets		270,105		286,835	324,356	363,125	498,201	(45.8)

	Allowance for Loan Losses		253,371		261,317	269,376	277,783	300,871	(15.8)

	Net Charge-Offs - Quarter		12,343		16,253	12,250	35,371	15,181	(18.7)
	Net Charge-Offs / Average Loans - Quarter ⁽²⁾		0.23	%	0.31	0.24	0.69	0.30

	Non-performing Loans / Loans		0.92		0.94	1.18	1.27	1.91
	Non-performing Assets / Loans, Other Loans Held for Sale & ORE		1.28		1.35	1.57	1.77	2.46
	Allowance / Loans		1.20		1.24	1.31	1.36	1.49

	Allowance / Non-performing Loans		130.45		132.14	111.14	107.03	78.29
	Allowance / Non-performing Loans ⁽³⁾		197.55		197.22	176.47	177.62	100.16

	Past Due Loans over 90 days and Still Accruing	$	5,025		4,637	4,067	4,798	6,563	(23.4)	%
	As a Percentage of Loans Outstanding		0.02	%	0.02	0.02	0.02	0.03

	Total Past Dues Loans and Still Accruing	$	57,443		51,251	72,712	60,428	75,038	(23.4)
	As a Percentage of Loans Outstanding		0.27	%	0.24	0.35	0.30	0.37

	Accruing Troubled Debt Restructurings (TDRs)	$	313,362		348,427	408,737	444,108	495,390	(36.7)

	(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)
			March 31, 2015		December 31, 2014	March 31, 2014

	Capital Rules in effect:		Basel III		Basel I	Basel I

	Tier 1 Capital	$	2,588,710		2,543,625	2,430,790
	Total Risk-Based Capital		3,035,644		2,987,406	2,981,130
	Common Equity Tier 1 Ratio (transitional)		10.78	%	na	na
	Common Equity Tier 1 Ratio (fully phased-in)		10.12		na	na
	Tier 1 Common Equity Ratio		na		10.28	10.24
	Tier 1 Capital Ratio		10.78		10.86	10.85
	Total Risk-Based Capital Ratio		12.64		12.75	13.31
	Tier 1 Leverage Ratio		9.65		9.67	9.46
	Common Equity as a Percentage of Total Assets⁽²⁾		10.51		10.78	10.87
	Tangible Common Equity as a Percentage of Tangible Assets ⁽³⁾		10.43		10.69	10.78
	Tangible Common Equity as a Percentage of Risk Weighted Assets ⁽³⁾		11.99		12.33	12.70
	Book Value Per Common Share ⁽⁴⁾⁽⁵⁾		21.69		21.42	20.67
	Tangible Book Value Per Common Share⁽³⁾⁽⁵⁾		21.50		21.23	20.48


	(1) Current quarter regulatory capital information is preliminary. March 31, 2015 regulatory capital ratios determined under Basel III capital rules. Prior period 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.
	(5) Per share data for 1Q14 has been restated to reflect the 1-for-7 reverse stock split which was effective on May 16, 2014.

Synovus Financial Corp.
Media Relations:
Greg Hudgison, 706-644-0528
or
Investor Relations:
Bob May, 706-649-3555

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