Synovus Announces Earnings for the Second Quarter 2017

Synovus Financial Corp. (NYSE:SNV) today reported financial results for the quarter ended June 30, 2017.

Second Quarter Highlights

• Net income available to common shareholders was $73.4 million or $0.60 per diluted share as compared to $69.3 million or $0.56 per diluted share for the first quarter 2017 and $57.9 million or $0.46 per diluted share for the second quarter 2016.
• Return on average assets was 1.00%, up 4 basis points from the previous quarter and up 17 basis points from the second quarter 2016.
• Return on average common equity was 10.34%, up 37 basis points from the previous quarter and up 208 basis points from the second quarter 2016.
• Total average loans grew $314.0 million or 5.2% annualized from the previous quarter and $1.42 billion or 6.2% as compared to the second quarter 2016.
• Total average deposits grew $72.9 million or 1.2% annualized from the previous quarter and $1.38 billion or 5.9% as compared to the second quarter 2016.
• Credit quality metrics remained favorable with a non-performing asset ratio of 73 basis points, down 4 basis points from the previous quarter and down 8 basis points from the second quarter 2016.
• Total revenues¹ were $319.8 million, up $15.7 million or 5.2% from the previous quarter and 10.5% from the second quarter 2016.
• Net interest margin was 3.51%, up 9 basis points from the previous quarter and up 24 basis points from the second quarter 2016.
• Efficiency ratio² of 59.90% improved from 64.84% the previous quarter and 65.11% in the second quarter 2016.

"We are pleased with our second quarter performance, highlighted by a 30 percent year-over-year increase in earnings per share," said Kessel Stelling, Synovus chairman and CEO. "Profitability continued to improve as we delivered a 1 percent return on assets and an efficiency ratio below 60 percent for the quarter. We also celebrated being named ‘Most Reputable Bank' by American Banker magazine and the Reputation Institute. Our team is honored by this recognition from both customers and non-customers, and further energized about our transition to a unified Synovus brand in 2018."

Balance Sheet

• Total loans ended the quarter at $24.43 billion, up $172.0 million or 2.8% annualized from the previous quarter and up $1.37 billion or 5.9% as compared to the second quarter 2016.
  • Commercial and industrial loans grew by $10.1 million or 0.3% annualized from the previous quarter and $795.5 million or 7.3% as compared to the second quarter 2016.
  • Consumer loans grew by $207.2 million or 16.3% annualized from the previous quarter and $666.0 million or 14.4% as compared to the second quarter 2016.
  • Commercial real estate loans declined by $45.0 million or 2.4% annualized from the previous quarter and declined $93.4 million or 1.2% as compared to the second quarter 2016.
• Total average loans were $24.35 billion, up $314.0 million or 5.2% annualized from the previous quarter and $1.42 billion or 6.2% as compared to the second quarter 2016.
• Total average deposits were $24.99 billion, up $72.9 million or 1.2% annualized from the previous quarter and $1.38 billion or 5.9% as compared to the second quarter 2016.
  • Average core transaction deposits³ grew $261.3 million or 5.8% annualized from the previous quarter and $1.56 billion or 9.3% as compared to the second quarter 2016.

Core Performance

• Total revenues¹ were $319.8 million, up $15.7 million or 5.2% from the previous quarter and 10.5% from the second quarter 2016.
• Net interest income was $251.1 million, up $11.2 million or 4.7% from the previous quarter and 13.4% from the second quarter 2016.
• Net interest margin was 3.51%, up 9 basis points from the previous quarter. Yield on earning assets was 3.99%, up 11 basis points from the previous quarter, and the effective cost of funds was 0.48%, up 2 basis points from the previous quarter.
• Total non-interest income was $68.7 million, down $3.2 million or 4.4% compared to the previous quarter and up 1.2% from second quarter 2016.
• Adjusted non-interest income was $70.1 million, up $4.1 million or 6.2% from the previous quarter and up 3.4% as compared to the second quarter 2016.
  • Core banking fees⁴ were $34.2 million, up $1.5 million or 4.6% from the previous quarter and 1.3% from the second quarter 2016.
  • Fiduciary and asset management fees, brokerage revenue, and insurance revenues were $20.8 million, up $114 thousand or 0.5% from the previous quarter and 5.0% from the second quarter 2016.
  • Mortgage banking income was $5.8 million, unchanged from the previous quarter and down 2.6% from the second quarter 2016.
• Total non-interest expense was $191.7 million, down $5.6 million or 2.9% from the previous quarter and up 1.7% from the second quarter 2016.
  • First quarter 2017 and second quarter 2016 included restructuring charges of $6.5 million and $5.8 million, respectively.
• Adjusted non-interest expense was $191.4 million, up $837 thousand or 0.4% from the previous quarter and 5.0% from the second quarter 2016.
  • Employment expense of $105.2 million decreased $2.0 million or 1.8% from the previous quarter and increased 8.4% from the second quarter 2016.
  • Occupancy and equipment expense of $29.9 million increased $602 thousand or 2.1% from the previous quarter and 11.8% from the second quarter 2016.
  • Other expenses of $56.6 million decreased $4.3 million or 7.0% from the previous quarter and decreased 12.6% from the second quarter 2016.
  • Efficiency ratio² was 59.90% as compared to 64.84% in the previous quarter and 65.11% in the second quarter 2016.
  • Adjusted efficiency ratio was 59.56% as compared to 62.25% in the previous quarter and 63.00% in the second quarter 2016.

Credit Quality

• Non-performing loans were $159.3 million at June 30, 2017, up $951 thousand from March 31, 2017 and up $5.2 million from June 30, 2016. The non-performing loan ratio was 0.65% at June 30, 2017, unchanged compared to March 31, 2017 and down from 0.67% at June 30, 2016.
• Total non-performing assets were $178.9 million at June 30, 2017, down $8.3 million from March 31, 2017 and down $8.4 million from June 30, 2016. The non-performing asset ratio was 0.73% at June 30, 2017, as compared to 0.77% at March 31, 2017 and 0.81% at June 30, 2016.
• Net charge-offs were $15.7 million in the second quarter 2017, up $8.8 million from $6.9 million in the previous quarter and up $9.5 million from $6.1 million in the second quarter 2016. The annualized net charge-off ratio was 0.26% in the second quarter as compared to 0.12% in the previous quarter and 0.11% in the second quarter 2016.
• Total delinquencies (consisting of loans 30 or more days past due and still accruing) remained low at 0.27% of total loans at June 30, 2017 as compared to 0.26% at March 31, 2017 and 0.24% at June 30, 2016.

Capital Ratios

• Ratios reflect repurchase of $30.2 million in common stock during the second quarter 2017.
• Common Equity Tier 1 ratio was 10.02% at June 30, 2017 compared to 9.86% at March 31, 2017.
• Tier 1 Capital ratio was 10.36% at June 30, 2017 compared to 10.18% at March 31, 2017.
• Total Risk Based Capital ratio was 12.24% at June 30, 2017 compared to 12.09% at March 31, 2017.
• Tier 1 Leverage ratio was 9.29% at June 30, 2017 compared to 9.13% at March 31, 2017.
• Tangible Common Equity ratio was 9.15% at June 30, 2017 compared to 9.04% at March 31, 2017.

Second Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on July 18, 2017. 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 investor.synovus.com/event. The replay will be archived for 12 months and will be available 30-45 minutes after the call.

Synovus Financial Corp.

Synovus Financial Corp. is a financial services company based in Columbus, Georgia, with approximately $31 billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services through 248 branches in Georgia, Alabama, South Carolina, Florida, and Tennessee. Synovus Bank, a wholly owned subsidiary of Synovus, was recognized as the "Most Reputable Bank" by American Banker and the Reputation Institute in 2017, and was named "Best Regional Bank, Southeast" by MONEY Magazine for 2016-17. Synovus is on the web at synovus.com, on Twitter @synovus, and on LinkedIn at http://linkedin.com/company/synovus.

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 regarding deposits, loan growth and the net interest margin; expectations on our growth strategy, expense initiatives, strategic transactions, our brand initiatives, capital management and future profitability; expectations on credit trends and key credit metrics; 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, 2016 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 average core transaction deposits; adjusted non-interest income; adjusted non-interest expense; adjusted efficiency ratio; tangible common equity ratio; and common equity Tier 1 (CET1) ratio (fully phased-in) 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 non-interest income; total non-interest expense; efficiency ratio; return on average common equity and total shareholders' equity to total assets ratio, respectively.

Synovus believes that these non-GAAP financial measures provide meaningful additional information about Synovus to assist management, investors, and bank regulators in evaluating Synovus' operating results, financial strength and capitalization, and the performance of its business and the strength of its capital position, but they have inherent limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP. Average core transaction deposits are a measure used by management to evaluate organic growth of deposits and the quality of deposits as a funding source. Adjusted non-interest income is a measure utilized by management to measure non-interest income exclusive of net investment securities gains and decrease in fair value of private equity investments, net. Adjusted non-interest expense and the adjusted efficiency ratio are measures utilized by management to measure the success of expense management initiatives focused on reducing recurring controllable operating costs. The tangible common equity ratio and common equity Tier 1 (CET1) ratio (fully phased-in) are used by management and bank regulators to assess the strength of our capital position. These non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant items and other factors, and since they are not required to be uniformly applied, they may not be comparable to other similarly titled measures at other companies and should not be considered as substitutes for total average deposits; total non-interest income; total non-interest expense; efficiency ratio; return on average common equity and total shareholders' equity to total assets ratio determined in accordance with GAAP and may not be comparable to other similarly titled measures at other companies.

The computations of average core transaction deposits; adjusted non-interest income; adjusted non-interest expense; adjusted efficiency ratio; tangible common equity ratio; and common equity Tier 1 (CET1) ratio (fully phased-in) and the reconciliation of these measures total average deposits; total non-interest income; total non-interest expense; efficiency ratio; return on average common equity; and total shareholders' equity to total assets ratio are set forth in the tables below.

¹ Consist of net interest income and non-interest income excluding net investment securities gains.
² Non-interest expense as a percentage of the sum of net interest income (fully taxable equivalent basis) and non-interest income excluding net investment securities gains/losses.
³ Consist of non-interest bearing, NOW/Savings, and money market deposits excluding SCMs and brokered deposits.
⁴ Include service charges on deposit accounts, bankcard fees, letter of credit fees, ATM fee income, line of credit non-usage fees, gains from sales of government guaranteed loans, and miscellaneous other service charges.

Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)				2Q17			1Q17			2Q16
Average Core Transaction Deposits
Total average deposits				$	24,991,708					24,918,855				23,608,027
Subtract: Average brokered deposits					(1,379,559	)				(1,380,786	)			(1,337,001	)
Subtract: Average time deposits excluding average SCM time deposits					(3,151,333	)				(3,151,888	)			(3,141,621	)
Subtract: Average state, county, and municipal (SCM) deposits					(2,051,646	)				(2,238,324	)			(2,280,038	)
Average core transaction deposits				$	18,409,170					18,147,857				16,849,367
Adjusted Non-interest Income
Total non-interest income				$	68,701					71,839				67,886
Subtract/add: Investment securities gains (losses), net					1					(7,668	)			-
Subtract/add: (Decrease) increase in fair value of private equity investments, net					1,352					1,814				(113	)
Adjusted non-interest income				$	70,054					65,985				67,773
Adjusted Non-interest Expense
Total non-interest expense				$	191,747					197,388				188,611
Subtract: Restructuring charges					(13	)				(6,511	)			(5,841	)
Subtract: Fair value adjustment to Visa derivative					-					-				(360	)
Subtract: Merger-related expense					-					(86	)			-
Subtract: Amortization of intangibles					(292	)				(183	)			-
Adjusted non-interest expense				$	191,442					190,608				182,410
Adjusted Efficiency Ratio
Adjusted non-interest expense				$	191,442					190,608				182,410
Net interest income					251,097					239,927				221,449
Add: Tax equivalent adjustment					298					309				329
Add: Total non-interest income					68,701					71,839				67,886
Subtract/add: Decrease (increase) in fair value of private equity investments, net					1,352					1,814				(113	)
Subtract/add: Investment securities gains (losses), net					1					(7,668	)			-
Total revenues				$	321,449					306,221				289,551
Adjusted efficiency ratio					59.56	%				62.25				63.00
Reconciliation of Non-GAAP Financial Measures, continued
(dollars in thousands)				2Q17			1Q17			2Q16
Tangible common equity ratio
Total assets				$	30,687,966					30,679,589				29,459,691
Subtract: Goodwill					(57,092	)				(57,010	)			(24,431	)
Subtract: Other intangible assets, net					(11,843	)				(12,137	)			(228	)
Tangible assets				$	30,619,031					30,610,442				29,435,032
Total shareholders' equity				$	2,997,947					2,962,127				2,951,659
Subtract: Goodwill					(57,092	)				(57,010	)			(24,431	)
Subtract: Other intangible assets, net					(11,843	)				(12,137	)			(288	)
Subtract: Series C Preferred Stock, no par value					(125,980	)				(125,980	)			(125,980	)
Tangible common equity				$	2,803,032					2,767,000				2,800,960
Tangible common equity ratio					9.15	%				9.04				9.52
Common Equity Tier 1 (CET1) ratio (fully phased-in)
Common Equity Tier 1 (CET1)				$	2,733,823					2,672,649				2,615,939
Adjustment related to capital components					(31,913	)				(39,834	)			(114,751	)
CET1 (fully phased-in)				$	2,701,910					2,632,815				2,501,188
Total risk-weighted assets (fully phased-in)				$	27,528,806					27,332,093				26,363,698
Common Equity Tier 1 (CET1) ratio (fully phased-in)					9.81	%				9.63				9.49

Synovus
INCOME STATEMENT DATA
(Unaudited)				Six Months Ended
(Dollars in thousands, except per share data)				June 30,
				2017			2016			Change
Interest income				$	557,911				501,716				11.2	%
Interest expense					66,887				62,073				7.8
Net interest income					491,024				439,643				11.7
Provision for loan losses					18,934				16,070				17.8
Net interest income after provision for loan losses					472,090				423,573				11.5
Non-interest income:
Service charges on deposit accounts					39,593				39,950				(0.9	)
Fiduciary and asset management fees					24,676				22,854				8.0
Brokerage revenue					14,436				13,821				4.4
Mortgage banking income					11,548				11,425				1.1
Bankcard fees					16,438				16,718				(1.7	)
Investment securities gains, net					7,667				67				nm
(Decrease) increase in fair value of private equity investments, net					(3,166	)			(278	)			nm
Other fee income					11,033				10,084				9.4
Other non-interest income					18,314				16,392				11.7
Total non-interest income					140,539				131,033				7.3
Non-interest expense:
Salaries and other personnel expense					212,404				198,419				7.0
Net occupancy and equipment expense					59,264				53,360				11.1
Third-party processing expense					26,223				22,814				14.9
FDIC insurance and other regulatory fees					13,645				13,344				2.3
Professional fees					12,907				13,307				(3.0	)
Advertising expense					11,258				9,761				15.3
Foreclosed real estate expense, net					3,582				7,272				(50.7	)
Earnout liability adjustments					1,707				-				nm
Merger-related expense					86				-				nm
Amortization of intangibles					475				121				292.6
Fair value adjustment to Visa derivative					-				720				nm
Loss on early extinguishment of debt					-				4,735				nm
Litigation settlement expense					-				2,700				nm
Restructuring charges, net					6,524				6,981				(6.5	)
Other operating expenses					41,058				43,310				(5.2	)
Total non-interest expense					389,133				376,844				3.3
Income before income taxes					223,496				177,762				25.7
Income tax expense					75,635				64,773				16.8
Net income					147,861				112,989				30.9
Dividends on preferred stock					5,119				5,119				-
Net income available to common shareholders				$	142,742				107,870				32.3	%
Net income per common share, basic				$	1.17				0.85				37.4	%
Net income per common share, diluted					1.16				0.85				36.5
Cash dividends declared per common share					0.30				0.24				25.0
Return on average assets					0.98		%		0.78				20	bps
Return on average common equity					10.16				7.66				250
Weighted average common shares outstanding, basic					122,251				126,164				(3.1	)%
Weighted average common shares outstanding, diluted					123,042				126,778				(2.9	)
nm - not meaningful
bps - basis points

Synovus
INCOME STATEMENT DATA
(Unaudited)
(In thousands, except per share data)				2017			2016			2nd Quarter
				Second			First			Fourth			Third			Second			'17 vs. '16
				Quarter			Quarter			Quarter			Quarter			Quarter			Change
Interest income				$	285,510				272,401				264,534				256,554				252,393			13.1	%
Interest expense					34,413				32,474				31,004				30,547				30,944			11.2
Net interest income					251,097				239,927				233,530				226,007				221,449			13.4
Provision for loan losses					10,260				8,674				6,259				5,671				6,693			53.3
Net interest income after provision for loan losses					240,837				231,253				227,271				220,336				214,756			12.1
Non-interest income:
Service charges on deposit accounts					19,820				19,774				20,653				20,822				20,240			(2.1	)
Fiduciary and asset management fees					12,524				12,151				11,903				11,837				11,580			8.2
Brokerage revenue					7,210				7,226				7,009				6,199				7,338			(1.7	)
Mortgage banking income					5,784				5,766				5,504				7,329				5,941			(2.6	)
Bankcard fees					8,253				8,185				8,330				8,269				8,346			(1.1	)
Investment securities gains (losses), net					(1	)			7,668				5,885				59				-			nm
(Decrease) increase in fair value of private equity investments, net					(1,352	)			(1,814	)			(499	)			(249	)			113			nm
Other fee income					6,164				4,868				4,965				5,171				5,280			16.7
Other non-interest income					10,299				8,015				10,256				8,718				9,048			13.8
Total non-interest income					68,701				71,839				74,006				68,155				67,886			1.2
Non-interest expense:
Salaries and other personnel expense					105,213				107,191				101,662				101,945				97,061			8.4
Net occupancy and equipment expense					29,933				29,331				27,867				28,120				26,783			11.8
Third-party processing expense					13,620				12,603				12,287				11,219				11,698			16.4
FDIC insurance and other regulatory fees					6,875				6,770				6,614				6,756				6,625			3.8
Professional fees					7,551				5,355				6,904				6,486				6,938			8.8
Advertising expense					5,346				5,912				4,905				5,597				7,351			(27.3	)
Foreclosed real estate expense, net					1,448				2,134				2,840				2,725				4,588			(68.4	)
Earnout liability adjustments					1,707				-				-				-				-			nm
Merger-related expense					-				86				1,086				550				-			nm
Amortization of intangibles					292				183				400				-				-			nm
Fair value adjustment to Visa derivative					-				-				4,716				360				360			nm
Litigation settlement (recovery) expense					-				-				-				(189	)			-			nm
Restructuring charges, net					13				6,511				42				1,243				5,841			nm
Other operating expenses					19,749				21,312				23,886				21,059				21,366			(7.6	)
Total non-interest expense					191,747				197,388				193,209				185,871				188,611			1.7
Income before income taxes					117,791				105,704				108,068				102,620				94,031			25.3
Income tax expense					41,788				33,847				39,519				37,375				33,574			24.5
Net income					76,003				71,857				68,549				65,245				60,457			25.7
Dividends on preferred stock					2,559				2,559				2,559				2,559				2,559			-
Net income available to common shareholders				$	73,444				69,298				65,990				62,686				57,898			26.9	%
Net income per common share, basic				$	0.60				0.57				0.54				0.51				0.46			29.9	%
Net income per common share, diluted					0.60				0.56				0.54				0.51				0.46			29.6
Cash dividends declared per common share					0.15				0.15				0.12				0.12				0.12			25.0
Return on average assets *					1.00	%			0.96				0.90				0.88				0.83			17	bps
Return on average common equity *					10.34				9.97				9.42				8.89				8.26			208
Weighted average common shares outstanding, basic					122,203				122,300				122,341				122,924				125,100			(2.3	)%
Weighted average common shares outstanding, diluted					123,027				123,059				123,187				123,604				125,699			(2.1	)
nm - not meaningful
bps - basis points
* - ratios are annualized

Synovus
BALANCE SHEET DATA				June 30, 2017			December 31, 2016			June 30, 2016
(Unaudited)
(In thousands, except share data)
ASSETS
Cash and cash equivalents				$377,213			395,175			377,334
Interest bearing funds with Federal Reserve Bank				468,148			527,090			904,406
Interest earning deposits with banks				6,012			18,720			24,541
Federal funds sold and securities purchased under resale agreements				46,847			58,060			77,685
Trading account assets, at fair value				3,045			9,314			1,001
Mortgage loans held for sale, at fair value				61,893			51,545			87,824
Investment securities available for sale, at fair value				3,827,058			3,718,195			3,580,359
Loans, net of deferred fees and costs				24,430,512			23,856,391			23,060,908
Allowance for loan losses				(248,095)			(251,758)			(255,076)
Loans, net				24,182,417			23,604,633			22,805,832
Premises and equipment, net				416,364			417,485			424,967
Goodwill				57,092			59,678			24,431
Other intangible assets				11,843			13,223			228
Other real estate				19,476			22,308			33,289
Deferred tax asset, net				320,403			395,356			425,160
Other assets				890,155			813,220			692,634
Total assets				$30,687,966			30,104,002			29,459,691
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing deposits				$7,363,476			7,085,804			6,934,443
Interest bearing deposits, excluding brokered deposits				16,387,032			16,183,273			15,495,318
Brokered deposits				1,468,308			1,378,983			1,496,161
Total deposits				25,218,816			24,648,060			23,925,922
Federal funds purchased and securities sold under repurchase agreements				150,379			159,699			247,179
Long-term debt				2,107,245			2,160,881			2,135,892
Other liabilities				213,579			207,438			199,039
Total liabilities				27,690,019			27,176,078			26,508,032
Shareholders' equity:
Series C Preferred Stock - no par value, 5,200,000 shares outstanding at June 30, 2017, December 31, 2016, and June 30, 2016				125,980			125,980			125,980
Common stock - $1.00 par value. 121,661,092 shares outstanding at June 30, 2017, 122,266,106 shares outstanding at December 31, 2016, and 124,047,659 shares outstanding at June 30, 2016				142,499			142,026			141,008
Additional paid-in capital				3,029,754			3,028,405			2,993,985
Treasury stock, at cost - 20,837,814 shares at June 30, 2017, 19,759,614 shares at December 31, 2016, and 16,959,977 shares at June 30, 2016				(709,944)			(664,595)			(573,058)
Accumulated other comprehensive income (loss)				(47,865)			(55,659)			11,005
Retained earnings				457,523			351,767			252,739
Total shareholders' equity				2,997,947			2,927,924			2,951,659
Total liabilities and shareholders' equity				$30,687,966			30,104,002			29,459,691

Synovus
AVERAGE BALANCES AND YIELDS/RATES (1)
(Unaudited)
(Dollars in thousands)
					2017			2016
					Second			First			Fourth			Third			Second
					Quarter			Quarter			Quarter			Quarter			Quarter
Interest Earning Assets
Taxable investment securities (2)				$	3,844,688				3,841,556				3,643,510				3,544,933				3,529,030
	Yield					2.11	%			2.06				1.92				1.83				1.89
Tax-exempt investment securities (2) (4)				$	340				2,730				2,824				2,943				3,491
	Yield (taxable equivalent)					6.87	%			5.81				5.82				5.96				6.08
Trading account assets				$	3,667				6,443				6,799				5,493				3,803
	Yield					2.28	%			1.72				2.63				0.93				1.27
Commercial loans (3) (4)				$	19,137,733				19,043,384				18,812,659				18,419,484				18,433,638
	Yield					4.27	%			4.16				4.05				4.03				4.04
Consumer loans (3)				$	5,215,258				4,992,683				4,911,149				4,720,082				4,497,147
	Yield					4.49	%			4.40				4.27				4.30				4.32
Allowance for loan losses				$	(251,219	)			(253,927	)			(253,713	)			(255,675	)			(251,101	)
Loans, net (3)				$	24,101,772				23,782,140				23,470,095				22,883,891				22,679,684
	Yield					4.36	%			4.25				4.14				4.14				4.15
Mortgage loans held for sale				$	52,224				46,554				77,652				87,524				72,477
	Yield					3.87	%			4.01				3.51				3.32				3.59
Federal funds sold, due from Federal Reserve Bank,
and other short-term investments				$	561,503				654,322				982,355				998,565				907,614
	Yield					1.00	%			0.77				0.49				0.48				0.47
Federal Home Loan Bank and Federal Reserve Bank stock (5)				$	177,323				170,844				121,079				70,570				77,571
	Yield					2.99	%			3.42				3.75				4.99				5.15
Total interest earning assets				$	28,741,517				28,504,589				28,304,314				27,593,919				27,273,670
	Yield					3.99	%			3.88				3.73				3.71				3.73
Interest Bearing Liabilities
Interest bearing demand deposits				$	4,837,053				4,784,329				4,488,135				4,274,117				4,233,310
	Rate					0.23	%			0.19				0.16				0.16				0.18
Money market accounts				$	7,427,562				7,424,627				7,359,067				7,227,030				7,082,759
	Rate					0.32	%			0.31				0.29				0.29				0.31
Savings deposits				$	805,019				909,660				908,725				797,961				746,225
	Rate					0.04	%			0.11				0.12				0.07				0.06
Time deposits under $100,000				$	1,202,746				1,215,593				1,229,809				1,248,294				1,262,280
	Rate					0.67	%			0.64				0.64				0.64				0.64
Time deposits over $100,000				$	2,040,924				2,029,713				2,014,564				2,030,242				2,016,116
	Rate					0.94	%			0.92				0.90				0.88				0.89
Non maturing brokered deposits				$	564,043				619,627				638,779				634,596				451,398
	Rate					0.54	%			0.41				0.31				0.29				0.39
Brokered time deposits				$	815,515				761,159				742,153				775,143				885,603
	Rate					0.94	%			0.92				0.90				0.88				0.85
Total interest bearing deposits				$	17,692,862				17,744,708				17,381,232				16,987,383				16,677,691
	Rate					0.41	%			0.39				0.37				0.37				0.39
Federal funds purchased and securities sold under
repurchase agreements				$	183,400				176,854				219,429				247,378				221,276
	Rate					0.10	%			0.09				0.08				0.09				0.09
Long-term debt				$	2,270,452				2,184,072				2,190,716				2,114,193				2,279,043
	Rate					2.83	%			2.83				2.65				2.71				2.55
Total interest bearing liabilities				$	20,146,714				20,105,634				19,791,377				19,348,954				19,178,010
	Rate					0.68	%			0.65				0.62				0.63				0.65
Non-interest bearing demand deposits				$	7,298,845				7,174,146				7,280,033				7,042,908				6,930,336
Effective cost of funds					0.48	%			0.46				0.44				0.44				0.46
Net interest margin					3.51	%			3.42				3.29				3.27				3.27
Taxable equivalent adjustment				$	298				309				322				330				329
(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
NON-PERFORMING LOANS COMPOSITION
(Unaudited)
(Dollars in thousands)
					Total			Total								Total
					Non-performing			Non-performing				2Q17 vs. 1Q17			Non-performing			2Q17 vs. 2Q16
Loan Type					Loans			Loans				% change (1)			Loans			% change
					June 30, 2017			March 31, 2017							June 30, 2016
Multi-Family				$	1,621				1,556					16.8	%			$	4,070				nm
Hotels					376				323					65.8					5,052				(92.6	)%
Office Buildings					326				185					305.7					2,563				(87.3	)
Shopping Centers					161				-					nm					358				nm
Warehouses					41				226					(328.3	)				1,128				(96.4	)
Other Investment Property					1,187				750					233.7					580				104.7
Total Investment Properties					3,712				3,040					88.7					13,751				(73.0	)
1-4 Family Construction					-				306					(401.1	)				304				(100.0	)
1-4 Family Investment Mortgage					8,535				8,497					1.8					7,994				6.8
Total 1-4 Family Properties					8,535				8,803					(12.2	)				8,298				2.9
Commercial Development					269				205					125.2					398				(32.4	)
Residential Development					5,585				9,033					(153.1	)				9,571				(41.6	)
Land Acquisition					5,077				5,114					(2.9	)				7,610				(33.3	)
Land and Development					10,931				14,352					(95.6	)				17,579				(37.8	)
Total Commercial Real Estate					23,178				26,195					(46.2	)				39,628				(41.5	)
Commercial, Financial, and Agricultural					69,550				60,381					60.9					55,821				24.6
Owner-Occupied					24,918				26,564					(24.9	)				17,118				45.6
Total Commercial & Industrial					94,468				86,945					34.7					72,939				29.5
Home Equity Lines					20,648				22,918					(39.7	)				16,912				22.1
Consumer Mortgages					18,035				19,874					(37.1	)				21,895				(17.6	)
Credit Cards					-				-					nm					-				nm
Other Consumer Loans					2,988				2,434					91.3					2,698				10.7
Total Consumer					41,671				45,226					(31.5	)				41,505				0.4
Total				$	159,317				158,366					2.4	%			$	154,072				3.4	%
(1) Percentage change is annualized.
LOANS OUTSTANDING BY TYPE COMPARISON
(Unaudited)
(Dollars in thousands)
					Total Loans			Total Loans				2Q17 vs. 1Q17				Total Loans			2Q17 vs. 2Q16
Loan Type					June 30, 2017			March 31, 2017				% change (1)				June 30, 2016			% change
Multi-Family				$	1,724,917				1,638,250					21.2	%			$	1,528,191				12.9	%
Hotels					835,110				794,685					20.4					746,397				11.9
Office Buildings					1,567,984				1,581,460					(3.4	)				1,559,631				0.5
Shopping Centers					864,868				902,954					(16.9	)				926,147				(6.6	)
Warehouses					467,369				504,619					(29.6	)				535,889				(12.8	)
Other Investment Property					575,415				594,084					(12.6	)				554,715				3.7
Total Investment Properties					6,035,663				6,016,052					1.3					5,850,970				3.2
1-4 Family Construction					198,419				203,151					(9.3	)				208,871				(5.0	)
1-4 Family Investment Mortgage					637,201				658,120					(12.7	)				758,463				(16.0	)
Total 1-4 Family Properties					835,620				861,271					(11.9	)				967,334				(13.6	)
Commercial Development					59,299				58,537					5.2					69,691				(14.9	)
Residential Development					118,032				130,653					(38.7	)				160,446				(26.4	)
Land Acquisition					365,657				392,710					(27.6	)				459,254				(20.4	)
Land and Development					542,988				581,900					(26.8	)				689,391				(21.2	)
Total Commercial Real Estate					7,414,271				7,459,223					(2.4	)				7,507,695				(1.2	)
Commercial, Financial, and Agricultural					7,000,573				7,056,032					(3.2	)				6,596,835				6.1
Owner-Occupied					4,750,335				4,684,734					5.6					4,358,595				9.0
Total Commercial & Industrial					11,750,908				11,740,766					0.3					10,955,430				7.3
Home Equity Lines					1,563,167				1,587,102					(6.0	)				1,657,109				(5.7	)
Consumer Mortgages					2,470,665				2,350,730					20.5					2,132,114				15.9
Credit Cards					225,900				224,349					2.8					236,034				(4.3	)
Other Consumer Loans					1,031,639				922,018					47.7					600,153				71.9
Total Consumer					5,291,371				5,084,199					16.3					4,625,410				14.4
Unearned Income					(26,038	)			(25,720	)				5.0					(27,627	)			(5.8	)
Total				$	24,430,512				24,258,468					2.8	%			$	23,060,908				5.9	%
(1) Percentage change is annualized.

Synovus
CREDIT QUALITY DATA
(Unaudited)
(Dollars in thousands)				2017			2016			2nd Quarter
				Second			First			Fourth			Third			Second			'17 vs. '16
				Quarter			Quarter			Quarter			Quarter			Quarter			Change
Non-performing Loans				$	159,317				158,366			153,378			148,155			154,072			3.4	%
Impaired Loans Held for Sale (1)					127				8,442			-			2,473			-			nm
Other Real Estate					19,476				20,425			22,308			28,438			33,289			(41.5	)
Non-performing Assets					178,920				187,233			175,686			179,066			187,361			(4.5	)
Allowance for loan losses					248,095				253,514			251,758			253,817			255,076			(2.7	)
Net Charge-Offs - Quarter					15,678				6,919			8,319			6,930			6,133			155.6
Net Charge-Offs - YTD					22,597				6,919			28,739			20,420			13,490			67.5
Net Charge-Offs / Average Loans - Quarter (2)					0.26	%			0.12			0.14			0.12			0.11
Net Charge-Offs / Average Loans - YTD (2)					0.19				0.12			0.12			0.12			0.12
Non-performing Loans / Loans					0.65				0.65			0.64			0.64			0.67
Non-performing Assets / Loans, Other Loans Held for Sale & ORE					0.73				0.77			0.74			0.77			0.81
Allowance / Loans					1.02				1.05			1.06			1.09			1.11
Allowance / Non-performing Loans					155.72				160.08			164.14			171.32			165.56
Allowance / Non-performing Loans (3)					217.07				204.94			202.01			198.94			195.25
Past Due Loans over 90 days and Still Accruing				$	4,550				2,777			3,135			5,358			5,964			(23.7	)
As a Percentage of Loans Outstanding					0.02	%			0.01			0.01			0.02			0.03
Total Past Due Loans and Still Accruing				$	66,788				62,137			65,106			61,781			55,716			19.9
As a Percentage of Loans Outstanding					0.27	%			0.26			0.27			0.27			0.24
Accruing Troubled Debt Restructurings (TDRs)				$	167,395				172,421			195,776			201,896			205,165			(18.4	)
(1) Represent only impaired loans that have been specifically identified to be sold. Impaired loans held for sale are carried at the lower of cost or fair value, less costs to sell, based primarily on estimated sales proceeds net of selling costs.
(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, 2017			December 31, 2016			June 30, 2016
Tier 1 Capital				$	2,827,892				2,685,880			2,627,574
Total Risk-Based Capital					3,338,707				3,201,268			3,146,898
Common Equity Tier 1 Ratio (transitional)					10.02	%			9.96			10.01
Common Equity Tier 1 Ratio (fully phased-in)					9.81				9.51			9.49
Tier 1 Capital Ratio					10.36				10.07			10.06
Total Risk-Based Capital Ratio					12.24				12.01			12.05
Tier 1 Leverage Ratio					9.29				8.99			9.10
Common Equity as a Percentage of Total Assets (2)					9.36				9.31			9.59
Tangible Common Equity as a Percentage of Tangible Assets (3)					9.15				9.09			9.52
Tangible Common Equity as a Percentage of Risk Weighted Assets (3)					10.27				10.24			10.72
Book Value Per Common Share (4)				$	23.61				22.92			22.78
Tangible Book Value Per Common Share (3)					23.04				22.32			22.58
(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. impact of unexercised tangible equity units (tMEDs).

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