0000018349-17-000018.txt : 20170804 0000018349-17-000018.hdr.sgml : 20170804 20170804155305 ACCESSION NUMBER: 0000018349-17-000018 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 87 CONFORMED PERIOD OF REPORT: 20170630 FILED AS OF DATE: 20170804 DATE AS OF CHANGE: 20170804 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SYNOVUS FINANCIAL CORP CENTRAL INDEX KEY: 0000018349 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 581134883 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-10312 FILM NUMBER: 171008498 BUSINESS ADDRESS: STREET 1: 1111 BAY AVENUE STREET 2: STE 500 PO BOX 120 CITY: COLUMBUS STATE: GA ZIP: 31901 BUSINESS PHONE: 7066446362 MAIL ADDRESS: STREET 1: 1111 BAY AVENUE STREET 2: STE 500 PO BOX 120 CITY: COLUMBUS STATE: GA ZIP: 31901 FORMER COMPANY: FORMER CONFORMED NAME: CB&T BANCSHARES INC DATE OF NAME CHANGE: 19890912 10-Q 1 snv-06302017x10q.htm 10-Q Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________
 
FORM 10-Q
 
______________________________
Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended June 30, 2017
Commission file number 1-10312
 
______________________________
financialappendix930a21.jpg
SYNOVUS FINANCIAL CORP.
(Exact name of registrant as specified in its charter)
______________________________
 
Georgia
 
58-1134883
(State or other jurisdiction of incorporation or organization)
 
   (I.R.S. Employer Identification No.)
1111 Bay Avenue
Suite 500, Columbus, Georgia
 
31901
(Address of principal executive offices)
 
(Zip Code)
Registrant’s telephone number, including area code: (706) 649-2311
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Name of each exchange on which registered
Common Stock, $1.00 Par Value
Series B Participating Cumulative Preferred Stock Purchase Rights
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series C
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: NONE
______________________________
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES x  NO ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   YES x  NO ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check One):
Large accelerated filer
x
Accelerated filer
¨
 
 
 
 
Non-accelerated filer
¨ (Do not check if a smaller reporting company)
Smaller reporting company
¨
 
 
 
 
 
 
Emerging growth company
¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to section 7(a)2(B) of the Securities Act.  ¨ 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ¨    NO x
Indicate the number of shares outstanding of each of the issuer’s class of common stock, as of the latest practicable date.
Class
 
 
 
July 31, 2017

Common Stock, $1.00 Par Value
 
 
 
121,501,638





Table of Contents
 
 
 
 
 
Page
Financial Information
 
 
 
Index of Defined Terms
 
Item 1.
Financial Statements (Unaudited)
 
 
 
Consolidated Balance Sheets as of June 30, 2017 and December 31, 2016
 
 
Consolidated Statements of Income for the Six and Three Months Ended June 30, 2017 and 2016
 
 
Consolidated Statements of Comprehensive Income for the Six and Three Months Ended June 30, 2017 and 2016
 
 
Consolidated Statements of Changes in Shareholders' Equity for the Six Months Ended June 30, 2017 and 2016
 
 
Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2017 and 2016
 
 
Notes to Unaudited Interim Consolidated Financial Statements
 
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
 
Item 3.
 
Item 4.
Controls and Procedures
 
 
 
 
 
Other Information
 
 
Item 1.
Legal Proceedings
 
Item 1A.
Risk Factors
 
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
 
Item 3.
Defaults Upon Senior Securities
 
Item 4.
Mine Safety Disclosures
 
Item 5.
Other Information
 
Item 6.
Exhibits
 
Signatures
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 






SYNOVUS FINANCIAL CORP.
INDEX OF DEFINED TERMS
ALCO – Synovus' Asset Liability Management Committee
ASC – Accounting Standards Codification
ASU – Accounting Standards Update
ATM – Automatic teller machine
Basel III – A global regulatory framework developed by the Basel Committee on Banking Supervision
BOLI – Bank-Owned Life Insurance
BOV – Broker’s opinion of value
bp – Basis point (bps - basis points)
C&I – Commercial and industrial loans
CCC – Central clearing counterparty
CET1 – Common Equity Tier 1 Capital defined by Basel III capital rules
CME – Chicago Mercantile Exchange
CMO – Collateralized Mortgage Obligation
Code – Internal Revenue Code of 1986, as amended
Company – Synovus Financial Corp. and its wholly-owned subsidiaries, except where the context requires otherwise
Covered Litigation – Certain Visa litigation for which Visa is indemnified by Visa USA members
CRE – Commercial real estate
DIF – Deposit Insurance Fund
Dodd-Frank Act – The Dodd-Frank Wall Street Reform and Consumer Protection Act
EVE – economic value of equity
Exchange Act – Securities Exchange Act of 1934, as amended
FASB – Financial Accounting Standards Board
FDIC – Federal Deposit Insurance Corporation
Federal Reserve Bank – The 12 banks that are the operating arms of the U.S. central bank. They implement the policies of the Federal Reserve Board and also conduct economic research.
Federal Reserve Board – The 7-member Board of Governors that oversees the Federal Reserve System, establishes monetary policy, and monitors the economic health of the country. Its members are appointed by the President, subject to Senate confirmation, and serve 14-year terms.
Federal Reserve System – The 12 Federal Reserve Banks, with each one serving member banks in its own district. This system, supervised by the Federal Reserve Board, has broad regulatory powers over the money supply and the credit structure.
FFIEC – Federal Financial Institutions Examination Council
FHLB – Federal Home Loan Bank
FICO – Fair Isaac Corporation
GA DBF – Georgia Department of Banking and Finance
GAAP – Generally Accepted Accounting Principles in the United States of America
GGL – government guaranteed loans
Global One – Entaire Global Companies, Inc., the parent company of Global One Financial, Inc., as acquired by Synovus on October 1, 2016. Throughout this Report, we refer to this acquisition as "Global One."

i


HELOC – Home equity line of credit
LIBOR – London Interbank Offered Rate
LTV – Loan-to-collateral value ratio
NAICS – North American Industry Classification System
nm – not meaningful
NPA – Non-performing assets
NPL – Non-performing loans
NSF – Non-sufficient funds
OCI – Other comprehensive income
OTC– Over-the-counter
ORE – Other real estate
OTTI – Other-than-temporary impairment
Parent Company – Synovus Financial Corp.
SBA – Small Business Administration
SCM – State, county, and municipal
SEC – U.S. Securities and Exchange Commission
Securities Act – Securities Act of 1933, as amended
Series C Preferred Stock – Synovus' Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series C, $25 liquidation preference
Synovus – Synovus Financial Corp.
Synovus Bank – A Georgia state-chartered bank and wholly-owned subsidiary of Synovus through which Synovus conducts its banking operations
Synovus' 2016 Form 10-K – Synovus' Annual Report on Form 10-K for the year ended December 31, 2016
Synovus Mortgage – Synovus Mortgage Corp., a wholly-owned subsidiary of Synovus Bank
Synovus Securities – Synovus Securities, Inc., a wholly-owned subsidiary of Synovus
Synovus Trust – Synovus Trust Company, N.A., a wholly-owned subsidiary of Synovus Bank
TDR – Troubled debt restructuring (as defined in ASC 310-40)
Treasury – United States Department of the Treasury
VIE – Variable interest entity, as defined in ASC 810-10
Visa – The Visa U.S.A., Inc. card association or its affiliates, collectively
Visa Class B shares – Class B shares of common stock issued by Visa which are subject to restrictions with respect to sale until all of the Covered Litigation has been settled
Visa Derivative – A derivative contract with the purchaser of Visa Class B shares which provides for settlements between the purchaser and Synovus based upon a change in the ratio for conversion of Visa Class B shares into Visa Class A shares
Warrant – A warrant issued to the Treasury by Synovus to purchase up to 2,215,820 shares of Synovus common stock at a per share exercise price of $65.52 expiring on December 19, 2018, as was issued by Synovus to Treasury in 2008 in connection with the Capital Purchase Program, promulgated under the Emergency Stabilization Act of 2008


ii



PART I. FINANCIAL INFORMATION
ITEM 1. - FINANCIAL STATEMENTS
SYNOVUS FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands, except share and per share data)
June 30, 2017
 
December 31, 2016
ASSETS
 
 
 
Cash and cash equivalents
$
377,213

 
395,175

Interest bearing funds with Federal Reserve Bank
468,148

 
527,090

Interest earning deposits with banks
6,012

 
18,720

Federal funds sold and securities purchased under resale agreements
46,847

 
58,060

Trading account assets, at fair value
3,045

 
9,314

Mortgage loans held for sale, at fair value
61,893

 
51,545

Investment securities available for sale, at fair value
3,827,058

 
3,718,195

Loans, net of deferred fees and costs
24,430,512

 
23,856,391

Allowance for loan losses
(248,095
)
 
(251,758
)
Loans, net
$
24,182,417

 
23,604,633

Premises and equipment, net
416,364

 
417,485

Goodwill
57,092

 
59,678

Other intangible assets
11,843

 
13,223

Other real estate
19,476

 
22,308

Deferred tax asset, net
320,403

 
395,356

Other assets
890,155

 
813,220

Total assets
$
30,687,966

 
30,104,002

LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
Liabilities
 
 
 
Deposits:
 
 
 
Non-interest bearing deposits
$
7,363,476

 
7,085,804

Interest bearing deposits, excluding brokered deposits
16,387,032

 
16,183,273

Brokered deposits
1,468,308

 
1,378,983

Total deposits
25,218,816

 
24,648,060

Federal funds purchased and securities sold under repurchase agreements
150,379

 
159,699

Long-term debt
2,107,245

 
2,160,881

Other liabilities
213,579

 
207,438

Total liabilities
$
27,690,019

 
27,176,078

Shareholders' Equity
 
 
 
Series C Preferred Stock – no par value. Authorized 100,000,000 shares; 5,200,000 shares issued and outstanding at June 30, 2017 and December 31, 2016
$
125,980

 
125,980

Common stock - $1.00 par value. Authorized 342,857,143 shares; 142,498,906 issued at June 30, 2017 and 142,025,720 issued at December 31, 2016; 121,661,092 outstanding at June 30, 2017 and 122,266,106 outstanding at December 31, 2016
142,499

 
142,026

Additional paid-in capital
3,029,754

 
3,028,405

Treasury stock, at cost – 20,837,814 shares at June 30, 2017 and 19,759,614 shares at December 31, 2016
(709,944
)
 
(664,595
)
Accumulated other comprehensive loss
(47,865
)
 
(55,659
)
Retained earnings
457,523

 
351,767

Total shareholders’ equity
2,997,947

 
2,927,924

Total liabilities and shareholders' equity
$
30,687,966

 
30,104,002

 
 
 
 
See accompanying notes to unaudited interim consolidated financial statements.

1


SYNOVUS FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
 
Six Months Ended June 30,
 
Three Months Ended June 30,
(in thousands, except per share data)
2017
 
2016
 
2017
 
2016
Interest income:
 
 
 
 
 
 
 
      Loans, including fees
$
511,319

 
462,892

 
$
261,971

 
232,974

      Investment securities available for sale
40,099

 
33,655

 
20,266

 
16,685

      Trading account assets
49

 
34

 
21

 
12

      Mortgage loans held for sale
972

 
1,238

 
505

 
650

      Federal Reserve Bank balances
2,515

 
2,019

 
1,304

 
1,020

      Other earning assets
2,957

 
1,878

 
1,443

 
1,052

Total interest income
557,911

 
501,716

 
285,510

 
252,393

Interest expense:
 
 
 
 
 
 
 
Deposits
35,075

 
32,214

 
18,118

 
16,200

Federal funds purchased and securities sold under repurchase agreements
84

 
96

 
45

 
51

Long-term debt
31,728

 
29,763

 
16,250

 
14,693

Total interest expense
66,887

 
62,073

 
34,413

 
30,944

Net interest income
491,024

 
439,643

 
251,097

 
221,449

Provision for loan losses
18,934

 
16,070

 
10,260

 
6,693

Net interest income after provision for loan losses
472,090

 
423,573

 
240,837

 
214,756

Non-interest income:
 
 
 
 
 
 
 
Service charges on deposit accounts
39,593

 
39,950

 
19,820

 
20,240

Fiduciary and asset management fees
24,676

 
22,854

 
12,524

 
11,580

Brokerage revenue
14,436

 
13,821

 
7,210

 
7,338

Mortgage banking income
11,548

 
11,425

 
5,784

 
5,941

Bankcard fees
16,438

 
16,718

 
8,253

 
8,346

Investment securities gains (losses), net
7,667

 
67

 
(1
)
 

(Decrease) increase in fair value of private equity investments, net
(3,166
)
 
(278
)
 
(1,352
)
 
113

Other fee income
11,033

 
10,084

 
6,164

 
5,280

Other non-interest income
18,314

 
16,392

 
10,299

 
9,048

Total non-interest income
140,539

 
131,033

 
68,701

 
67,886

Non-interest expense:
 
 
 
 
 
 
 
Salaries and other personnel expense
212,404

 
198,419

 
105,213

 
97,061

Net occupancy and equipment expense
59,264

 
53,360

 
29,933

 
26,783

Third-party processing expense
26,223

 
22,814

 
13,620

 
11,698

FDIC insurance and other regulatory fees
13,645

 
13,344

 
6,875

 
6,625

Professional fees
12,907

 
13,307

 
7,551

 
6,938

Advertising expense
11,258

 
9,761

 
5,346

 
7,351

Foreclosed real estate expense, net
3,582

 
7,272

 
1,448

 
4,588

Earnout liability adjustment
1,707

 

 
1,707

 

Merger-related expense
86

 

 

 

Loss on early extinguishment of debt, net

 
4,735

 

 

Fair value adjustment to Visa derivative

 
720

 

 
360

Restructuring charges, net
6,524

 
6,981

 
13

 
5,841

Other operating expenses
41,533

 
46,131

 
20,041

 
21,366

Total non-interest expense
389,133

 
376,844

 
191,747

 
188,611

Income before income taxes
223,496

 
177,762

 
117,791

 
94,031

Income tax expense
75,635

 
64,773

 
41,788

 
33,574

Net income
147,861

 
112,989

 
76,003

 
60,457

Dividends on preferred stock
5,119

 
5,119

 
2,559

 
2,559

Net income available to common shareholders
$
142,742

 
107,870

 
$
73,444

 
57,898

Net income per common share, basic
$
1.17

 
0.85

 
$
0.60

 
0.46

Net income per common share, diluted
1.16

 
0.85

 
0.60

 
0.46

Weighted average common shares outstanding, basic
122,251

 
126,164

 
122,203

 
125,100

Weighted average common shares outstanding, diluted
123,043

 
126,778

 
123,027

 
125,699

 
 
 
 
 
 
 
 
See accompanying notes to unaudited interim consolidated financial statements.

2


SYNOVUS FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)

 
Six Months Ended June 30,
 
2017
 
2016
(in thousands)
Before-tax Amount
 
Tax (Expense) Benefit
 
Net of Tax Amount
 
Before-tax Amount
 
Tax (Expense) Benefit
 
Net of Tax Amount
Net income
$
223,496

 
(75,635
)
 
147,861

 
177,762

 
(64,773
)
 
112,989

Net change related to cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Reclassification adjustment for losses realized in net income
130

 
(50
)
 
80

 
337

 
(130
)
 
207

Net unrealized gains on investment securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
Reclassification adjustment for net gains realized in net income
(7,667
)
 
2,952

 
(4,715
)
 
(67
)
 
26

 
(41
)
Net unrealized gains arising during the period
20,250

 
(7,797
)
 
12,453

 
66,215

 
(25,493
)
 
40,722

Net unrealized gains
12,583

 
(4,845
)
 
7,738

 
66,148

 
(25,467
)
 
40,681

Post-retirement unfunded health benefit:
 
 
 
 
 
 
 
 
 
 
 
Reclassification adjustment for gains realized in net income
(40
)
 
16

 
(24
)
 
(104
)
 
40

 
(64
)
Actuarial gains arising during the period

 



 

 

 

Net unrealized (realized) gains
$
(40
)
 
16

 
(24
)
 
(104
)
 
40

 
(64
)
Other comprehensive income
$
12,673

 
(4,879
)
 
7,794

 
66,381

 
(25,557
)
 
40,824

Comprehensive income
 
 
 
 
$
155,655

 
 
 
 
 
153,813

 
 
 
 
 
 
 
 
 
 
 
 

 
Three Months Ended June 30,
 
2017
 
2016
(in thousands)
Before-tax Amount
 
Tax (Expense) Benefit
 
Net of Tax Amount
 
Before-tax Amount
 
Tax (Expense) Benefit
 
Net of Tax Amount
Net income
$
117,791

 
(41,788
)
 
76,003

 
94,031

 
(33,574
)
 
60,457

Net change related to cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Reclassification adjustment for losses realized in net income
65

 
(25
)
 
40

 
64

 
(25
)
 
39

Net unrealized gains on investment securities available for sale:


 
 
 
 
 
 
 
 
 
 
Reclassification adjustment for net losses realized in net income
1

 

 
1

 

 

 

Net unrealized gains arising during the period
11,150

 
(4,293
)
 
6,857

 
19,044

 
(7,332
)
 
11,712

Net unrealized gains
11,151

 
(4,293
)
 
6,858

 
19,044

 
(7,332
)
 
11,712

Post-retirement unfunded health benefit:
 
 
 
 
 
 
 
 
 
 
 
Reclassification adjustment for gains realized in net income
(20
)
 
8

 
(12
)
 
(10
)
 
4

 
(6
)
Actuarial gains arising during the period

 



 

 

 

Net unrealized (realized) gains
$
(20
)
 
8

 
(12
)
 
(10
)
 
4

 
(6
)
Other comprehensive income
$
11,196

 
(4,310
)
 
6,886

 
19,098

 
(7,353
)
 
11,745

Comprehensive income
 
 
 
 
$
82,889

 
 
 
 
 
72,202

 
 
 
 
 
 
 
 
 
 
 
 
See accompanying notes to unaudited interim consolidated financial statements.

3


SYNOVUS FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(unaudited)
(in thousands, except per share data)
Series C Preferred Stock
 
Common
Stock
 
Additional
Paid-in
Capital
 
Treasury
Stock
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Retained Earnings
 
Total
Balance at December 31, 2015
$
125,980

 
140,592

 
2,989,981

 
(401,511
)
 
(29,819
)
 
174,973

 
3,000,196

Net income

 

 

 

 

 
112,989

 
112,989

Other comprehensive income, net of income taxes

 

 

 

 
40,824

 

 
40,824

Cash dividends declared on common stock -$0.24 per share

 

 

 

 

 
(30,015
)
 
(30,015
)
Cash dividends paid on Series C Preferred Stock

 

 

 

 

 
(5,119
)
 
(5,119
)
Repurchases of common stock

 

 


 
(171,547
)
 

 

 
(171,547
)
Restricted share unit activity

 
298

 
(4,814
)
 

 

 
(89
)
 
(4,605
)
Stock options exercised

 
118

 
1,917

 

 

 

 
2,035

Share-based compensation net tax benefit

 

 
52

 

 

 

 
52

Share-based compensation expense

 

 
6,849

 

 

 

 
6,849

Balance at June 30, 2016
$
125,980

 
141,008

 
2,993,985

 
(573,058
)
 
11,005

 
252,739

 
2,951,659

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2016
$
125,980

 
142,026

 
3,028,405

 
(664,595
)
 
(55,659
)
 
351,767

 
2,927,924

Net income

 

 

 

 

 
147,861

 
147,861

Other comprehensive income, net of income taxes

 

 

 

 
7,794

 

 
7,794

Cash dividends declared on common stock - $0.30 per share

 

 

 

 

 
(36,696
)
 
(36,696
)
Cash dividends paid on Series C Preferred Stock

 

 

 

 

 
(5,119
)
 
(5,119
)
Repurchases of common stock

 

 

 
(45,349
)
 

 

 
(45,349
)
Restricted share unit activity

 
330

 
(7,850
)
 

 

 
(290
)
 
(7,810
)
Stock options exercised

 
143

 
2,361

 

 

 

 
2,504

Share-based compensation expense

 

 
6,838

 

 

 

 
6,838

Balance at June 30, 2017
$
125,980

 
$
142,499

 
3,029,754

 
(709,944
)
 
(47,865
)
 
457,523

 
2,997,947

 
 
 
 
 
 
 
 
 
 
 
 
 
 
See accompanying notes to unaudited interim consolidated financial statements.

4


SYNOVUS FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
 
Six Months Ended June 30,
(in thousands)
2017
 
2016
Operating Activities
 
 
 
Net income
$
147,861

 
112,989

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Provision for loan losses
18,934

 
16,070

Depreciation, amortization, and accretion, net
29,334

 
28,506

Deferred income tax expense
70,484

 
61,283

Decrease in trading account assets
6,269

 
4,096

Originations of mortgage loans held for sale
(325,094
)
 
(320,304
)
Proceeds from sales of mortgage loans held for sale
323,861

 
299,186

Gain on sales of mortgage loans held for sale, net
(7,049
)
 
(6,946
)
Increase in other assets
(14,525
)
 
(33,152
)
(Decrease) increase in other liabilities
(9,667
)
 
13,162

Investment securities gains, net
(7,667
)
 
(67
)
Losses and write-downs on other real estate, net
2,856

 
6,089

Decrease in fair value of private equity investments, net
3,166

 
278

Losses and write-downs on other assets held for sale, net

 
7,902

Loss on early extinguishment of debt, net

 
4,735

Share-based compensation expense
6,838

 
6,849

Net cash provided by operating activities
$
245,601

 
200,676

Investing Activities
 
 
 
Net decrease (increase) in interest earning deposits with banks
12,708

 
(7,154
)
Net decrease (increase) in federal funds sold and securities purchased under resale agreements
11,213

 
(7,866
)
Net decrease (increase) in interest bearing funds with Federal Reserve Bank
58,942

 
(74,519
)
Proceeds from maturities and principal collections of investment securities available for sale
313,902

 
443,128

Proceeds from sales of investment securities available for sale
338,381

 
243,609

Purchases of investment securities available for sale
(748,754
)
 
(623,046
)
Proceeds from sales of loans
10,747

 
7,739

Proceeds from sales of other real estate
5,492

 
16,282

Net increase in loans
(612,309
)
 
(660,778
)
Purchases of bank-owned life insurance policies
(75,000
)
 

Net increase in premises and equipment
(15,386
)
 
(16,769
)
Proceeds from sales of other assets held for sale
3,158

 
296

Net cash used in investing activities
$
(696,906
)
 
(679,078
)
Financing Activities
 
 
 
Net increase in demand and savings deposits
367,450

 
595,342

Net increase in certificates of deposit
202,927

 
87,466

Net (decrease) increase in federal funds purchased and securities sold under repurchase agreements
(9,320
)
 
70,154

Repayments on long-term debt
(1,128,591
)
 
(1,455,067
)
Proceeds from issuance of long-term debt
1,075,000

 
1,400,000

Dividends paid to common shareholders
(18,349
)
 
(30,015
)
Dividends paid to preferred shareholders
(5,119
)
 
(5,119
)
Stock options exercised
2,504

 
2,035

Repurchases of common stock
(45,349
)
 
(171,547
)
Restricted stock activity
(7,810
)
 
(4,605
)
Net cash provided by financing activities
$
433,343

 
488,644

(Decrease) increase in cash and cash equivalents
(17,962
)
 
10,242

Cash and cash equivalents at beginning of period
395,175

 
367,092

Cash and cash equivalents at end of period
$
377,213

 
377,334


5


 
 
 
 
Supplemental Cash Flow Information
 
 
 
Cash paid during the period for:
 
 
 
Income tax payments, net
$
8,768

 
5,849

Interest paid
67,007

 
64,424

Non-cash Activities
 
 
 
Premises and equipment transferred to other assets held for sale

 
18,677

Other assets held for sale transferred to premises and equipment
4,450

 

Loans foreclosed and transferred to other real estate
5,516

 
8,631

Loans transferred to other loans held for sale at fair value
10,584

 
7,314

   Dividends declared on common stock during the period but paid after period-end
18,349

 

See accompanying notes to unaudited interim consolidated financial statements.

6



Notes to Unaudited Interim Consolidated Financial Statements
Note 1 - Significant Accounting Policies
Business Operations
The accompanying unaudited interim consolidated financial statements of Synovus Financial Corp. include the accounts of the Parent Company and its consolidated subsidiaries. Synovus Financial Corp. is a financial services company based in Columbus, Georgia. Through its wholly-owned subsidiary, Synovus Bank, a Georgia state-chartered bank that is a member of the Federal Reserve System, the company provides commercial and retail banking in addition to a full suite of specialized products and services including private banking, treasury management, wealth management, premium finance and international banking.
Synovus Bank is positioned in some of the highest growth markets in the Southeast, with 248 branches and 327 ATMs in Georgia, Alabama, South Carolina, Florida, and Tennessee.
Basis of Presentation
The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the instructions to the SEC Form 10-Q and Article 10 of Regulation S-X; therefore, they do not include all information and footnotes necessary for a fair presentation of financial position, results of operations, comprehensive income, and cash flows in conformity with GAAP. All adjustments consisting of normally recurring accruals that, in the opinion of management, are necessary for a fair presentation of the consolidated financial position and results of operations for the periods covered by this Report have been included. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes appearing in Synovus' 2016 Form 10-K. There have been no significant changes to the accounting policies as disclosed in Synovus' 2016 Form 10-K.
In preparing the unaudited interim consolidated financial statements in accordance with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the respective consolidated balance sheets and the reported amounts of revenues and expenses for the periods presented. Actual results could differ significantly from those estimates.
Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, the fair value of investment securities, the fair value of private equity investments, and contingent liabilities related to legal matters.
Cash and Cash Equivalents
Cash and cash equivalents consist of cash and due from banks. At December 31, 2016, $533 thousand of the due from banks balance was restricted as to withdrawal. There were no cash and cash equivalents restricted as to withdrawal at June 30, 2017.
Short-term Investments
Short-term investments consist of interest bearing funds with the Federal Reserve Bank, interest earning deposits with banks, and federal funds sold and securities purchased under resale agreements. At June 30, 2017 and December 31, 2016, interest bearing funds with the Federal Reserve Bank included $120.5 million and $130.0 million, respectively, on deposit to meet Federal Reserve Bank requirements. Interest earning deposits with banks include $5.9 million and $5.6 million at June 30, 2017 and December 31, 2016, respectively, which are pledged as collateral in connection with certain letters of credit. Federal funds sold include $43.3 million and $56.1 million at June 30, 2017 and December 31, 2016, respectively, which are pledged to collateralize certain derivative financial instruments. Federal funds sold and securities purchased under resale agreements, and federal funds purchased and securities sold under repurchase agreements, generally mature in one day.
Recently Adopted Accounting Standards Updates
During 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies various aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. This accounting standard update includes a requirement to record all tax effects associated with share-based compensation through the income statement. Prior to 2017, tax benefits in excess of compensation cost (“windfalls”) and tax deficiencies (“shortfalls”) were recorded in equity. During the six and three months ended June 30, 2017, Synovus recognized $4.5 million and $378 thousand, respectively, of income tax benefits from excess tax benefits that occurred during the six months ended June 30, 2017 from the vesting of restricted share units and exercise of stock options. As of January 1, 2017, Synovus had no previously unrecognized excess tax benefits. Additionally, beginning January 1, 2017, Synovus modified the denominator in the diluted earnings per common share calculation under the treasury stock method to exclude future excess tax benefits as part of the assumed proceeds. Synovus elected to retain its existing accounting policy election to estimate award forfeitures.

7


During 2015, the FASB issued ASU 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes, which became effective January 1, 2017. ASU 2015-17 requires that deferred income tax liabilities and assets be classified as noncurrent in the statement of financial position instead of separating deferred taxes into current and noncurrent amounts. Also, valuation allowances will no longer be classified between current and noncurrent because these allowances will be required to be classified as noncurrent under the new standard. This ASU only impacts classification in the balance sheet, and has no impact on required deferred tax footnote disclosures (i.e., required presentation of “gross” deferred tax assets and “gross” deferred tax liabilities). The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by this ASU. There is no impact to our balance sheet as a result of this standard because Synovus has not historically distinguished deferred taxes on the balance sheet as current vs. non-current.
Reclassifications
Prior periods' consolidated financial statements are reclassified whenever necessary to conform to the current periods' presentation.

Note 2 - Acquisition
On October 1, 2016, Synovus completed its acquisition of all of the outstanding stock of Global One. Prior to its acquisition, Global One was an Atlanta-based private specialty financial services company that lended primarily to commercial entities, with all loans fully collateralized by cash value life insurance policies and/or annuities issued by investment grade life insurance companies. Under the terms of the merger agreement, Synovus acquired Global One for an up-front payment of $30 million, consisting of the issuance of 821 thousand shares of Synovus common stock valued at $26.6 million and $3.4 million in cash, with additional payments to Global One's former shareholders over the next three to five years based on earnings from the Global One business as further discussed below.
The acquisition of Global One constituted a business combination. Accordingly, the assets acquired and liabilities assumed were recorded at their estimated fair values as shown in the following table. The determination of fair value required management to make estimates about discount rates, future expected earnings and cash flows, market conditions, future loan growth, and other future events that are highly subjective in nature and subject to change. These fair value estimates reflect measurement period adjustments to the amounts reported as of December 31, 2016, the most significant of which consist of a reduction in goodwill of $2.6 million and a decrease in the estimated fair value of contingent consideration of $1.8 million (the income statement impact of such adjustments was insignificant). These fair value estimates are considered preliminary and are subject to change for up to one year after the closing date of the acquisition as additional information becomes available.

8


Global One
 
October 1, 2016
(in thousands)
 
Fair Value
Assets acquired:
 
 
Cash and due from banks
 
$
9,554

      Commercial and industrial loans(1)
 
357,307

Goodwill(2)
 
32,661

Other intangible assets
 
12,500

Other assets
 
3,904

Total assets acquired
 
$
415,926

Liabilities assumed:
 
 
Notes payable(3)
 
$
358,560

Contingent consideration
 
12,234

Deferred tax liability, net
 
3,229

Other liabilities
 
11,903

Total liabilities assumed
 
$
385,926

Consideration paid
 
$
30,000

 
 
 
Cash paid
 
$
3,408

Fair value of common stock issued
 
26,592

 
 
 
(1) The unpaid principal balance of the loans was $356.7 million.  
(2) The goodwill is not expected to be deductible for tax purposes.
(3) The unpaid principal balance of the notes payable was $357.0 million.
Under the terms of the merger agreement, the purchase price includes additional annual payments ("Earnout Payments") to Global One's former shareholders over the next three to five years, with amounts based on a percentage of "Global One Earnings," as defined in the merger agreement. The Earnout Payments will consist of shares of Synovus common stock as well as a smaller cash consideration component.
Other intangible assets consist of existing borrower relationships (11 years useful life), trade name (10 years useful life), and distribution network (8 years useful life) with June 30, 2017 net carrying values of $10.1 million, $1.0 million, and $544 thousand, respectively.
The following is a description of the methods used to determine the fair values of significant assets and liabilities:
Commercial and industrial loans: The fair value of loans was determined based on a discounted cash flow approach. The most significant assumptions used in the valuation of the loan portfolio consisted of the prepayment rate, the probability of extension at maturity, the interest rates on extended loans, and the discount rates. All loans are fully collateralized by cash value life insurance policies and/or annuities issued by investment grade insurance companies. Based on a history of no principal losses on the loan portfolio since inception as well as the collateral position, no losses were estimated in the event of default.
Notes payable: The notes payable were extinguished immediately after the closing of the acquisition. Accordingly, the fair value of notes payable was determined based on the amounts paid to extinguish such notes, inclusive of applicable prepayment penalties, which is consistent with the perspective of a market participant.
Contingent consideration: The fair value of the contingent consideration, which represents the fair value of the above referenced Earnout Payments, was determined based on option pricing methods and a Monte Carlo simulation. The most significant assumptions used in the valuation of the contingent consideration were the expected cash flows, volatility, and discount rates. Future changes in the fair value of the contingent consideration will be recognized in earnings until the contingent consideration arrangement is settled.
Note 3 - Share Repurchase Program
Synovus' Board of Directors authorized an up to $200 million share repurchase program that will expire at the end of 2017. This program was announced on January 17, 2017. As of June 30, 2017, Synovus had repurchased under this program a total of $45.3 million, or 1.1 million shares, at an average price of $42.04 per share.



Note 4 - Investment Securities
The amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities available for sale at June 30, 2017 and December 31, 2016 are summarized below.
 
 
June 30, 2017
(in thousands)
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
 Fair Value
U.S. Treasury securities
 
$
83,493

 

 
(360
)
 
83,133

U.S. Government agency securities
 
12,088

 
223

 

 
12,311

Mortgage-backed securities issued by U.S. Government agencies
 
132,710

 
640

 
(1,125
)
 
132,225

Mortgage-backed securities issued by U.S. Government sponsored enterprises
 
2,881,234

 
6,169

 
(30,998
)
 
2,856,405

Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises
 
734,804

 
84

 
(12,468
)
 
722,420

State and municipal securities
 
290

 

 

 
290

Corporate debt and other securities
 
20,279

 
205

 
(210
)
 
20,274

Total investment securities available for sale
 
$
3,864,898

 
7,321

 
(45,161
)
 
3,827,058

 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
(in thousands)
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Fair Value
U.S. Treasury securities
 
$
108,221

 
225

 
(644
)
 
107,802

U.S. Government agency securities
 
12,727

 
266

 

 
12,993

Mortgage-backed securities issued by U.S. Government agencies
 
174,440

 
1,116

 
(1,354
)
 
174,202

Mortgage-backed securities issued by U.S. Government sponsored enterprises
 
2,543,495

 
5,416

 
(42,571
)
 
2,506,340

Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises
 
905,789

 
1,214

 
(16,561
)
 
890,442

State and municipal securities
 
2,780

 
14

 

 
2,794

Equity securities
 
919

 
2,863

 

 
3,782

Corporate debt and other securities
 
20,247

 

 
(407
)
 
19,840

Total investment securities available for sale
 
$
3,768,618

 
11,114

 
(61,537
)
 
3,718,195

 
 
 
 
 
 
 
 
 
At June 30, 2017 and December 31, 2016, investment securities with a carrying value of $1.73 billion and $2.04 billion, respectively, were pledged to secure certain deposits and securities sold under repurchase agreements as required by law and contractual agreements.
Synovus has reviewed investment securities that are in an unrealized loss position as of June 30, 2017 and December 31, 2016 for OTTI and does not consider any securities in an unrealized loss position to be other-than-temporarily impaired. If Synovus intended to sell a security in an unrealized loss position, the entire unrealized loss would be reflected in earnings. Synovus does not intend to sell investment securities in an unrealized loss position prior to the recovery of the unrealized loss, which may be until maturity, and has the ability and intent to hold those securities for that period of time. Additionally, Synovus is not currently aware of any circumstances which will require it to sell any of the securities that are in an unrealized loss position prior to the respective securities' recovery of all such unrealized losses.
Declines in the fair value of available for sale securities below their cost that are deemed to have OTTI are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. Currently, unrealized losses on debt securities are attributable to increases in interest rates on comparable securities from the date of purchase. Synovus regularly evaluates its investment securities portfolio to ensure that there are no conditions that would indicate that unrealized losses represent OTTI. These factors include the length of time the security has been in a loss position, the extent that the fair value is below amortized cost, and the credit standing of the issuer. As of June 30, 2017, Synovus had 92 investment securities in a loss position for less than twelve months and 3 investment securities in a loss position for twelve months or longer.

10


Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2017 and December 31, 2016 are presented below.
 
June 30, 2017
 
Less than 12 Months
 
12 Months or Longer
 
Total
(in thousands)
Fair
Value
 
Gross Unrealized
Losses
 
Fair
Value
 
Gross Unrealized
Losses
 
Fair
Value
 
Gross Unrealized
Losses
U.S. Treasury securities
$
64,342

 
360

 

 

 
64,342

 
360

Mortgage-backed securities issued by U.S. Government agencies
95,492

 
1,125

 

 

 
95,492

 
1,125

Mortgage-backed securities issued by U.S. Government sponsored enterprises
2,161,449

 
30,998

 

 

 
2,161,449

 
30,998

Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises
668,342

 
11,678

 
23,212

 
790

 
691,554

 
12,468

Corporate debt and other securities

 

 
5,069

 
210

 
5,069

 
210

    Total
$
2,989,625

 
44,161

 
28,281

 
1,000

 
3,017,906

 
45,161

 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
Less than 12 Months
 
12 Months or Longer
 
Total
(in thousands)
Fair
Value
 
Gross Unrealized
Losses
 
Fair
Value
 
Gross Unrealized
Losses
 
Fair
Value
 
Gross Unrealized
Losses
U.S. Treasury securities
$
64,023

 
644

 

 

 
64,023

 
644

Mortgage-backed securities issued by U.S. Government agencies
128,121

 
1,240

 
3,626

 
114

 
131,747

 
1,354

Mortgage-backed securities issued by U.S. Government sponsored enterprises
2,123,181

 
42,571

 

 

 
2,123,181

 
42,571

Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises
682,492

 
15,653

 
24,801

 
908

 
707,293

 
16,561

Corporate debt and other securities
14,952

 
48

 
4,888

 
359

 
19,840

 
407

Total
$
3,012,769

 
60,156

 
33,315

 
1,381

 
3,046,084

 
61,537

 
 
 
 
 
 
 
 
 
 
 
 

11


The amortized cost and fair value by contractual maturity of investment securities available for sale at June 30, 2017 are shown below. The expected life of mortgage-backed securities or CMOs may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. For purposes of the maturity table, mortgage-backed securities and CMOs, which are not due at a single maturity date, have been classified based on the final contractual maturity date.
 
Distribution of Maturities at June 30, 2017
(in thousands)
Within One
Year
 
1 to 5
Years
 
5 to 10
Years
 
More Than
10 Years
 
No Stated
Maturity
 
Total
Amortized Cost
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
$
18,791

 
64,702

 

 

 

 
83,493

U.S. Government agency securities
1,000

 
5,612

 
5,476

 

 

 
12,088

Mortgage-backed securities issued by U.S. Government agencies

 

 
34,868

 
97,842

 

 
132,710

Mortgage-backed securities issued by U.S. Government sponsored enterprises
47

 
2,262

 
535,035

 
2,343,890

 

 
2,881,234

Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises

 

 
22,173

 
712,631

 

 
734,804

State and municipal securities
110

 
180

 

 

 

 
290

Corporate debt and other securities

 

 
15,000

 
2,000

 
3,279

 
20,279

Total amortized cost
$
19,948

 
72,756

 
612,552

 
3,156,363

 
3,279

 
3,864,898

 
 
 
 
 
 
 
 
 
 
 
 
Fair Value
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
$
18,791

 
64,342

 

 

 

 
83,133

U.S. Government agency securities
1,004

 
5,682

 
5,625

 

 

 
12,311

Mortgage-backed securities issued by U.S. Government agencies

 

 
35,007

 
97,218

 

 
132,225

Mortgage-backed securities issued by U.S. Government sponsored enterprises
48

 
2,390

 
529,968

 
2,323,999

 

 
2,856,405

Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises

 

 
21,950

 
700,470

 

 
722,420

State and municipal securities
110

 
180

 

 

 

 
290

Corporate debt and other securities

 

 
15,205

 
1,927

 
3,142

 
20,274

Total fair value
$
19,953

 
72,594

 
607,755

 
3,123,614

 
3,142

 
3,827,058

 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from sales, gross gains, and gross losses on sales of securities available for sale for the three months ended June 30, 2017 and 2016 are presented below. The specific identification method is used to reclassify gains and losses out of other comprehensive income at the time of sale.
 
 
Six Months Ended June 30,
 
Three Months Ended June 30,
(in thousands)
 
2017
 
2016
 
2017
 
2016
Proceeds from sales of investment securities available for sale
 
$
338,381

 
243,609

 
$
55,752

 

Gross realized gains on sales
 
7,942

 
954

 
239

 

Gross realized losses on sales
 
(275
)
 
(887
)
 
(240
)
 

Investment securities gains, net
 
$
7,667

 
67

 
$
(1
)
 

 
 
 
 
 
 
 
 
 

12


Note 5 - Restructuring Charges
For the six and three months ended June 30, 2017 and 2016, total restructuring charges consist of the following components:
 
Six Months Ended June 30,
 
Three Months Ended June 30,
(in thousands)
2017
 
2016
 
2017
 
2016
Severance charges
$
6,453

 

 
$

 

Lease termination charges

 
31

 

 
(13
)
Asset impairment charges

 
6,866

 

 
5,821

Loss (gain) on sale of assets held for sale, net
(4
)
 
13

 
(4
)
 
13

Other charges
75

 
71

 
17

 
20

Total restructuring charges, net
$
6,524

 
6,981

 
$
13

 
5,841

 
 
 
 
 
 
 
 
During the first quarter of 2017, Synovus recorded severance charges of $6.5 million including $6.2 million for termination benefits incurred in conjunction with a voluntary early retirement program offered during the first quarter of 2017. This program was part of Synovus' ongoing efficiency initiatives. The $6.2 million accrual was based on the benefits to be paid to employees who accepted the early retirement offer on or prior to the expiration of the program on March 30, 2017. For the three months ended June 30, 2016, Synovus recorded restructuring charges of $5.8 million with $4.8 million of those charges related to Synovus' corporate real estate optimization activities and $1.0 million associated with branch closures. Restructuring charges associated with branch closures during the first quarter of 2016 totaled $1.1 million.
The following tables present aggregate activity within the accrual for restructuring charges for the six and three months ended June 30, 2017 and 2016:
(in thousands)
Severance Charges
 
Lease Termination Charges
 
Total
Balance at December 31, 2016
$
81

 
3,968

 
4,049

Accruals for voluntary and involuntary termination benefits
6,453

 

 
6,453

Payments
(2,803
)
 
(438
)
 
(3,241
)
Balance at June 30, 2017
$
3,731

 
3,530

 
7,261

 
 
 
 
 
 
Balance at April 1, 2017
6,315

 
3,689

 
10,004

Payments
(2,584
)
 
(159
)
 
(2,743
)
Balance at June 30, 2017
$
3,731

 
3,530

 
7,261

 
 
 
 
 
 
(in thousands)
Severance Charges
 
Lease Termination Charges
 
Total
Balance at December 31, 2015
$
1,930

 
4,687

 
6,617

Accruals for lease terminations

 
31

 
31

Payments
(1,337
)
 
(343
)
 
(1,680
)
Balance at June 30, 2016
$
593

 
4,375

 
4,968

 
 
 
 
 
 
Balance at April 1, 2016
1,533

 
4,545

 
6,078

Accruals for lease terminations

 
(13
)
 
(13
)
Payments
(940
)
 
(157
)
 
(1,097
)
Balance at June 30, 2016
$
593

 
4,375

 
4,968

 
 
 
 
 
 
All other charges were paid in the quarters that they were incurred. No other restructuring charges resulted in payment accruals.

13


Note 6 - Loans and Allowance for Loan Losses
The following is a summary of current, accruing past due, and non-accrual loans by portfolio class as of June 30, 2017 and December 31, 2016.
Current, Accruing Past Due, and Non-accrual Loans
 
 
June 30, 2017
 
(in thousands)
Current
 
Accruing 30-89 Days Past Due
 
Accruing 90 Days or Greater Past Due
 
Total Accruing Past Due
 
Non-accrual
 
 Total
 
Investment properties
$
6,028,397

 
3,482

 
72

 
3,554

 
3,712

 
6,035,663

 
1-4 family properties
818,327

 
8,657

 
101

 
8,758

 
8,535

 
835,620

 
Land and development
529,967

 
1,964

 
126

 
2,090

 
10,931

 
542,988

 
Total commercial real estate
7,376,691

 
14,103

 
299

 
14,402

 
23,178

 
7,414,271

 
Commercial, financial and agricultural
6,915,588

 
14,670

 
765

 
15,435

 
69,550

 
7,000,573

 
Owner-occupied
4,715,325

 
9,291

 
801

 
10,092

 
24,918

 
4,750,335

 
Total commercial and industrial
11,630,913

 
23,961

 
1,566

 
25,527

 
94,468

 
11,750,908

 
Home equity lines
1,533,528

 
8,286

 
705

 
8,991

 
20,648

 
1,563,167

 
Consumer mortgages
2,444,866

 
7,141

 
623

 
7,764

 
18,035

 
2,470,665

 
Credit cards
223,092

 
1,550

 
1,258

 
2,808

 

 
225,900

 
Other consumer loans
1,021,355

 
7,197

 
99

 
7,296

 
2,988

 
1,031,639

 
Total consumer
5,222,841

 
24,174

 
2,685

 
26,859

 
41,671

 
5,291,371

 
Total loans
$
24,230,445

 
62,238

 
4,550

 
66,788

 
159,317

 
24,456,550

(1 
) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
(in thousands)
Current
 
Accruing 30-89 Days Past Due
 
Accruing 90 Days or Greater Past Due
 
Total Accruing Past Due
 
Non-accrual
 
 Total
 
Investment properties
$
5,861,198

 
2,795

 

 
2,795

 
5,268

 
5,869,261

 
1-4 family properties
873,231

 
4,801

 
161

 
4,962

 
9,114

 
887,307

 
Land and development
591,732

 
1,441

 

 
1,441

 
16,233

 
609,406

 
Total commercial real estate
7,326,161

 
9,037

 
161

 
9,198

 
30,615

 
7,365,974

 
Commercial, financial and agricultural
6,846,591

<