Atlanta, Georgia
Columbia, South Carolina
Mobile, Alabama
Montgomery, Alabama
Jacksonville, Florida
LaGrange, Georgia
Nashville, Tennessee
Columbus, Georgia
Thomasville, Georgia
2013 Annual Report
Synovus Financial Corp. is a financial services company based in Columbus, Georgia with approximately $26 billion in assets. Through our wholly-owned subsidiary, Synovus Bank, member FDIC, the company provides commercial and retail banking in addition to a full suite of specialized products and services including private banking, treasury management, asset-based lending, wealth management, and international banking. Synovus also provides mortgage services, financial planning, and investment advisory services through its wholly-owned subsidiaries, Synovus Mortgage, Synovus Trust, and Synovus Securities, as well as its GLOBALT Investments and Creative Financial Group divisions. These specialized offerings, combined with our traditional banking products and services, make Synovus Bank a great choice for retail and commercial customers. Synovus Bank’s 28 locally-branded bank divisions are positioned in some of the best markets in the Southeast, with 277 branches and 363 ATMs in Georgia, Alabama, South Carolina, Florida, and Tennessee. See Synovus on the web at synovus.com.
Tampa, Florida
Athens, Georgia
Dothan/Enterprise, Alabama
Sumter, South Carolina
Dear Shareholders, As I have traveled our footprint meeting with team members and customers over the past year, and as I told our story to community groups and investors, I regularly recapped a list of transformational events for our company since 2010, which included the consolidation of our 30 bank charters into one; the launch of a major ongoing efficiency initiative and our return to profitability, both in 2011; and the late 2012 sale of distressed assets totaling approximately $545 million which significantly strengthened our balance sheet. Then, in January of 2013, we announced the recapture of our $803 million deferred tax asset (DTA) – an important step in preparing for our exit from the Troubled Asset Relief Program (TARP). The reaching of that major milestone was the first of many accomplishments our team would celebrate during 2013, a year that was truly pivotal for Synovus and one that has even better positioned us for growth in the years ahead.
A Year of Progress The recapture of our DTA was quickly
customers, which collectively resulted
followed by several other important
in a solid overall financial performance
events – upgrades by three ratings
for the year.
agencies beginning in February; the lifting of two remaining Memorandums
During 2013, we achieved broad-based
of Understanding in April; participation
improvement in credit quality and total
in an FDIC-assisted assumption in May;
credit costs declined significantly from
two successful stock offerings, a $185
$432.6 million in 2012 to $118.0 million in
million common stock offering and a $130
2013, a 72.7% decline. Our net charge-off
million preferred stock offering, in July;
ratio declined to 0.69% in 2013 compared
and, also in that month, the monumental
to 2.45% in 2012. The non-performing
redemption of all $968 million of our
loan ratio declined to 2.08% at year-end
company’s preferred stock issued to the
2013, compared to 2.78% at the end of
U.S. Treasury under TARP. While TARP
2012. Our lending engine gained good
no doubt stabilized our economy at a
traction during the year, ending with
critical time and gave us a needed capital
three consecutive quarters of reported
infusion, exiting the program provided
loan growth. While we saw growth across
renewed operating flexibility.
our footprint, we were especially pleased with our progress in high opportunity
And even as our team was managing
markets such as Atlanta, Nashville,
through the unfolding of these
Tampa, Birmingham, and across South
extraordinary accomplishments, we
Carolina. The increase in reported loans
maintained a steady focus on further
was driven by a $431.2 million or 4.5%
strengthening credit quality, growing
growth in C&I loans as we continued to
revenue, continuing to reduce expenses,
leverage strategic partnerships between
and, most importantly, caring for
our core and specialty-line bankers that
Kessel D. Stelling Chairman and Chief Executive Officer
Synovus Financial Corp. 2013 Annual Report
1
Statesboro, Georgia
Tuscaloosa, Alabama
Naples, Florida
provide benefits to our customers and
one nationally with 13 awards in the Small
Total Credit Costs
generate core growth. We saw the impact
Business category. We believe this affirms
(in millions)
across our footprint of our expanded
our solid position in key markets across
Large Corporate Banking line of business
the Southeast region, and speaks to the
with this combined unit reaching $2
success of our team members in providing
billion in total loans outstanding. Retail
exceptional service and building long-
loans grew by $153.5 million or 4.4% with
lasting relationships with our customers.
$432.6
$500 million
$118.0 $0
2012
2013
strong growth in HELOC and private client mortgages. Reported loans grew
Finally, there was no more fitting way
by $516.1 million or 2.6% from a year
to cap off our successful year than
ago. Excluding the impact of transfers
celebrating the 125th anniversary of
Net Loan Growth*
to loans held for sale, charge-offs, and foreclosures, net loan growth* was $862.3
the founding of our company. While
(in millions)
million during 2013, compared to a net loan growth* of $588.8 million in 2012.
is significant, this milestone is especially
We expect this momentum to continue
we have faced in our recent history.
during 2014, with projected annual loan
We are thankful for the loyalty of our
growth of 4 to 5%.
shareholders and customers, and we
reaching a 125-year mark in any business important considering the challenges
deeply appreciate the dedication of our Additionally, we fully implemented $30
team members who continue to put the
million in efficiency initiatives during
needs of our customers first. We also
the year, reducing our adjusted non-
value the community partnerships we
interest expenses for 2013 by $21.8
have created over the years, and look
million compared to the prior year. We
forward to being an ongoing part of the
announced additional expected expense
economic success of individuals, families,
savings of $30 million in 2014 to offset
businesses, and communities across
our investments in talent and technology
our five-state footprint. As part of our
necessary for growth.
anniversary celebration, Synovus team
$862.3
$1 billion
$588.8
$0
2012
2013
members partnered with more than 100 We were pleased with the FDIC data
community groups and agencies in nearly
released mid-year that showed we
every one of our markets to volunteer
had retained top five market share
hundreds of hours on various projects.
in communities that represent
Team members stocked food banks
approximately 80% of our core deposit
and shelters, and donated thousands of
franchise. Our company was also
children’s books, coats, shoes, and school
recognized by Greenwich Associates
supplies to those in need. During 2013,
with 20 Customer Service Excellence
our team participated in more than 1,800
Awards overall, and we ranked number
community projects and donated more
2
Synovus Financial Corp. 2013 Annual Report
* Excluding the impact of transfers to loans held for sale, charge-offs, and foreclosures. Non-GAAP financial measure. See Non-GAAP financial measures in Part II - Item 7 of the enclosed Annual Report.
Warner Robins, Georgia
than 16,000 hours of volunteer time. Our company has been given so much in the past 125 years, so we believe it is our responsibility to do all we can to help make our communities stronger. As a finale to our anniversary celebration, several of our leaders and directors represented our more than 4,600 team members on the floor of the New York Stock Exchange as we rang the November 13, 2013 closing bell. This historic event created an opportunity for us to celebrate the rich legacy that has been the foundation of our past success and will continue to serve as our inspiration for many years to come.
2014 and Beyond: Delivering an Exceptional Banking Experience
Savannah, Georgia
Strengthening the Synovus Brand One of the key differentiators for our company has long been our locallybranded, relationship-based banking approach that creates mutually beneficial partnerships with our customers. While our 28-plus different local market names have allowed us to be responsive to local customer needs, there are opportunities to better connect customers, especially our small and middle market business segments, with our local brands as well as deepen the understanding of the broad array of services Synovus provides. In 2014, we are launching an internal and external brand awareness effort that highlights the strength of our franchise and local delivery model while emphasizing the capital, infrastructure, and expertise of the larger Synovus Bank.
As we transitioned our company from survivor back to competitor by successfully executing a well-defined recovery plan, we were also building a longer-term strategic roadmap for positioning Synovus as one of the leading banks in the Southeast. While we entered 2014 with strong capital and a continued commitment to the fundamentals of credit quality improvement and further expense reductions, our central focus this year is on expanding existing and growing new customer relationships by offering an exceptional banking experience. Our efforts are concentrated in four key areas: strengthening the Synovus brand; driving growth through core and specialty banking solutions; optimizing customer convenience; and investing in our people.
Driving Growth through Core and Specialty Banking Solutions
Birmingham, Alabama
and private wealth customers. Additional fee income is expected through our Financial Management Services line as we increase our level of market penetration through an expanded brokerage sales force, additional mortgage originators, and the extension of our insurance and trust offerings by licensing more of our frontline bankers to offer these products. Also, we are expanding our outreach to clients needing private wealth services after seeing good results from our enhanced strategy in 2013. We expect continued loan growth through our Large Corporate Banking lines of business, especially Equipment Finance, Senior Housing, and Corporate Real Estate. Our relationship-based approach is appealing to commercial customers, especially in these types of highlyspecialized market segments, because they require resources that are responsive, flexible, and who understand their needs.
Deposit, loan, and fee income growth in this highly competitive banking environment will come through our delivery of standout customer service combined with competitive core and specialized products and services for both retail and commercial segments. We are customizing our growth plans, ensuring we are targeting the needs and preferences of customers whether they bank with us in a small, medium, or larger market. These growth plans include a continued emphasis on promoting our core banking solutions, especially important to small business, professional
Optimizing Customer Convenience Our bank, like the rest of the industry, has witnessed significant changes in the retail customer segment with declines in the volume of branch transactions, increased preferences for alternative channels for product and service delivery, and the impact of new government regulations. We continue to evaluate our branch network to ensure our brick and mortar locations provide optimal value and convenience to those who want or Synovus Financial Corp. 2013 Annual Report
3
Charleston, South Carolina
Rome, Georgia
Tallahassee, Florida Savannah, Georgia
need a physical place to bank. We know
promotion processes. And as we, like
Neal joined our board in 2003 and has
from both industry research and our
other companies, work hard to manage
served as the Chairman of our Audit
own feedback that branches still serve
healthcare costs, we will continue our
Committee and also served on our
an important role in our customers’
emphasis on wellness and overall personal
Executive and Risk Committees. Neal’s
experience. We are also layering in
health by offering a comprehensive array
more than 40 years of accounting
additional and enhanced technology
of proactive health programs for team
experience in the financial institutions
to serve the needs of customers who
members.
industry and his integral involvement
prefer to interact with us whenever and
in other public companies’ auditing
wherever they are. By delivering more
practices and risk management programs
E-channel features in 2014, including a
and policies have been a tremendous
new online account origination platform,
resource for us.
and improved mobile banking and ATM channels equipped with the capability
Our company has certainly been positively
to capture customer preferences, we are
impacted by Jimmy and Neal over many
still delivering personalized banking to
Yancey
customers, but with added flexibility
Thank You
and convenience. Our online Business Banking Center will also be enhanced with new features and links to our other useful services, like Treasury Management, that create a high-touch and personal engagement with each business customer.
Investing in Our People
Purcell
As I close, I would like to thank Jimmy Yancey and Neal Purcell, who will be retiring from our Board of Directors as of our April 2014 Annual Shareholders Meeting. For 54 years, 45 of those as a team member, Jimmy served in various capacities with Synovus and Columbus
years, and their leadership will be missed. Finally, thank you to our shareholders for your loyalty as we continue to work hard to create value for you; to our team members, who have given so much of yourselves to restoring and positioning us for an exciting future; and to our customers, who are the reason we come to work energized every day. Rest assured that as excited as we were to celebrate the last 125 years of progress for our
We remain committed as ever to caring
Bank and Trust (CB&T), including
for our team members and providing
Chairman of the Board and President of
the right kind of training, benefits,
both Synovus and CB&T. He is legendary
leadership development, and career
in our company for his customer-first
growth opportunities that help us
approach, and in 2001, he led the
retain and attract the best talent in the
creation of Our Customer Covenant,
industry. We realize that investing in
which codifies our deep commitment to
team members is essential to having
exceptional service. Jimmy’s impact on
Kessel D. Stelling
satisfied customers and long-term growth.
the culture and history of this company
Chairman and Chief Executive Officer
We are also committed to improving
is immeasurable, and we will always be
our workforce demographics through
grateful for his many contributions to our
focused recruitment efforts and internal
team, customers, and communities.
4
Synovus Financial Corp. 2013 Annual Report
company, we are even more excited about the promising years ahead. Thank you for your continued support,
As the finale to our anniversary celebration, members of our leadership team and Board of Directors rang the closing bell on November 13 at the New York Stock Exchange.
Shareholder Information Stock Trading Information Synovus common stock is traded on the New York Stock Exchange (NYSE) under the symbol “SNV”. Price and volume information appears under the abbreviation “SynovusFnl” in NYSE daily stock quotation listings.
Dividend Reinvestment and Direct Stock Purchase Plan The Plan provides a comprehensive package of services designed to make investing in Synovus stock easy, convenient, and more affordable. To request an enrollment package for the Dividend Reinvestment and Direct Stock Purchase Plan, or for more information, please visit us at synovus.com on the Internet or call our automated request line at (888) 777-0322. New Investors. You can join the Plan by making an initial investment of at least $250. Synovus Shareholders. You can choose to participate by submitting a completed enrollment form. If your shares are held in a brokerage account, you must first register some or all of your shares in your name. Dividend Reinvestment. You can invest all or a part of your cash dividends to accumulate more shares without paying fees. Optional Cash Investments. You can purchase additional shares by investing between a minimum of $50 at any one time and $250,000 in total per calendar year. If you wish, we can withdraw funds automatically from your bank account each month to purchase shares. Purchases are made weekly or more often if volume dictates. Fees are lower than those typically charged by the financial services industry. Safekeeping. You can deposit your certificates with us for safekeeping at no
Florence, South Carolina
cost to you. You can request a certificate any time at no cost.
Meeting of Shareholders via a live Webcast on the Internet.
Gifts and transfers of shares. You can make gifts or transfers to others.
Investor Relations
Sale of shares. Whenever you want, you can sell some or all of your shares at fees lower than those typically charged by the financial services industry. Shares are sold weekly or more often if volume dictates.
Online Stock Purchase and Information You can now purchase your initial shares online at synovus.com and easily get current information on your shareholder account 24 hours a day, seven days a week. You will have access to: • View account status • Purchase or sell shares • View book-entry information • Request certificate issuance • Establish/change your PIN • Make address changes • View payment history for dividend • Obtain a duplicate 1099 tax form • Request a dividend check replacement • Receive annual meeting material electronically
Notice of 2014 Annual Meeting of Shareholders
Analysts, investors, and others seeking additional financial information not available at synovus.com should contact: Patrick A. Reynolds Director of Investor Relations Synovus P.O. Box 120, Columbus, GA 31902-0120 (706) 649-4973 Fax: (706) 644-8065 email: snvir@synovus.com
Shareholder Services Current shareholders requiring assistance should contact American Stock Transfer & Trust Company:
U.S. Mail - Registered or Overnight Delivery 6201 15th Avenue, Brooklyn, NY 11219
Telephone Inquiries (888) 777-0322
Web Site amstock.com
10 a.m. Eastern time, April 24, 2014, in the Columbus Georgia Convention and Trade Center, 801 Front Avenue, Columbus, GA 31901. Log on to synovus.com/ 2014annualmeeting to join our 2014 Annual Cautionary language regarding forward-looking statements: This annual report to shareholders contains forwardlooking statements, which by their nature involve risks and uncertainties. Please refer to Synovus’ 2013 Annual Report on Form 10-K filed with the Securities and Exchange Commission for information concerning forward-looking statements, under the caption “Forward-Looking Statements,” and for a description of certain factors that may cause actual results to differ from goals referred to herein or contemplated by such statements. SYNOVUS® and SYNOVUS FINANCIAL CORP.® are federally registered service marks of Synovus Financial Corp., which also owns a number of other federally registered service marks. All other products and company names are trademarks or federally registered trademarks of their respective companies. ©Copyright 2014 Synovus Financial Corp. All rights reserved.
Photo Credits: Mike Culpepper Photography, Larry Wilbourn - Huntsville, AL photo Ben Hider Photography - NYSE photo
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