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|Synovus Reports Results for Third Quarter of 2010
|Positive Credit Trends Continue|
Columbus, Ga., October 25, 2010 – Synovus Financial Corp. (NYSE: SNV) today reported a net loss for the third quarter of $195.8 million, a 19 percent improvement from the net loss of $243 million for the second quarter of 2010, and a 57 percent improvement from the net loss of $454 million for the third quarter of 2009. The net loss per common share for the third quarter was $0.25. During the quarter, Synovus’ credit trends continued to improve, its capital position remained strong, and its core performance remained stable.
Third Quarter Business Results:
Continued Positive Credit Trends
Strong Capital Position
As of September 30, 2010, capital ratios were as follows:
Stable Core Performance
Balance Sheet Fundamentals
“Although credit trends continued to improve in the quarter, we know there is much work to be done as we continue to drive Synovus back to profitability,” said Kessel D. Stelling, President and CEO of Synovus. “The lowest provision expense since the third quarter of 2008, the lowest net charge-offs since the fourth quarter of 2008, stable past-due levels, and declining overall credit costs are all indicators that our credit trends are moving in the right direction. Improvement in credit is the single most important factor in our return to profitability, and our team continues to work aggressively to resolve these issues. We are also focused on re-establishing a growth engine for Synovus’ long-term success that is driven by accelerating top line revenue growth through targeting specific customer segments, hiring additional top producer talent in high-growth markets, and developing an enhanced product suite specifically for commercial customers,” continued Stelling.
“Additionally, our team is actively working on a number of strategies to create a more efficient organization and eliminate excess capacity. The fundamental objective is a much more streamlined organization that delivers the optimal customer experience. We are confident that our relationship-centered model, with local branding and local decision-making, positions us well to accomplish these objectives,” added Stelling.
Synovus will host an earnings highlights conference call at 4:30 p.m. EDT on October 25, 2010. The earnings call will be accompanied by a slide presentation. Shareholders and other interested parties can access the slide presentation and listen to the conference call via simultaneous Internet broadcast at www.synovus.com by clicking on the “Live Webcast” icon. RealPlayer or Windows Media Player can be downloaded prior to accessing the actual call or the replay. The replay will be archived for 12 months and will be available 30-45 minutes after the call.
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/A for the year ended December 31, 2009 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, including Synovus’ Current Report on Form 8-K filed on April 26, 2010. 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 tangible common equity to tangible assets ratio, core deposits, core deposits excluding time deposits, pre-tax, pre-credit costs income, and non-interest expense excluding credit costs and other non-recurring items 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 the ratio of total shareholders’ equity to total assets, total deposits, loss before income taxes, 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 the ratio of total shareholders’ equity to total assets, total deposits, loss before income taxes, or 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 the tangible common equity to tangible assets ratio, core deposits, core deposits excluding time deposits, pre-tax, pre-credit costs income, and non-interest expense excluding credit costs and other non-recurring items, and the reconciliation of these measures to the ratio of total shareholders’ equity to total assets, total deposits, loss before income taxes, and total non-interest expense are set forth in the tables below: