Synovus Financial (SNV) 8-K Synovus Reports Results for Second Quarter 2009

Synovus 4 of 9

INCOME STATEMENT DATA
(Unaudited)
(Dollars in thousands, except per share data)

	Six Months Ended
	June 30,
	2009			2008			Change
Interest income (taxable equivalent)	$	773,284			964,330			(19.8	)%
Interest expense		271,037			409,950			(33.9	)
Net interest income (taxable equivalent)		502,247			554,380			(9.4	)
Tax equivalent adjustment		2,399			2,310			3.9
Net interest income		499,848			552,070			(9.5	)
Provision for losses on loans		921,963			184,665			399.3
Net interest income (loss) after provision for loan losses		(422,115	)		367,405			(214.9	)
Non-interest income:
Service charges on deposit accounts		58,401			54,461			7.2
Fiduciary and asset management fees		21,471			25,519			(15.9	)
Brokerage and investment banking income		14,393			17,693			(18.7	)
Mortgage banking income		23,912			13,847			72.7
Bankcard fees		26,436			26,417			0.1
Other fee income		16,412			21,266			(22.8	)
Increase in fair value of private equity investments, net		8,090			4,946			63.6
Proceeds from sale of MasterCard shares		8,351			16,186			(48.4	)
Proceeds from redemption of Visa shares		—			38,542		nm
Other non-interest income		19,122			28,798			(33.6	)
Total non-interest income		196,588			247,675			(20.6	)
Non-interest expense:
Salaries and other personnel expense		221,294			231,806			(4.5	)
Net occupancy and equipment expense		62,374			61,337			1.7
FDIC insurance and other regulatory fees		43,060			12,250			251.5
Foreclosed real estate		218,734			21,558		nm
Losses on other loans held for sale		1,095			9,944			(89.0	)
Visa litigation (recovery) expense		—			(17,430	)	nm
Goodwill impairment		—			27,000			(100.0	)
Professional fees		17,312			13,394			29.3
Restructuring charges		6,755			4,251			58.9
Other operating expenses		89,050			103,228			(13.7	)
Total non-interest expense		659,674			467,338			41.2
Income (loss) before income taxes		(885,201	)		147,742		nm
Income tax (benefit) expense		(164,220	)		52,952		nm
Net income (loss)		(720,981	)		94,790		nm
Net income (loss) attributable to non-controlling interest		2,620			1,697			54.4
Net income (loss) attributable to controlling interest		(723,601	)		93,093		nm
Dividends and accretion of discount on preferred stock		28,417			—		nm
Net income (loss) available to common shareholders	$	(752,018	)		93,093		nm
Basic EPS	$	(2.28	)		0.28		nm
Diluted EPS		(2.28	)		0.28		nm
Cash dividends declared per share		0.02			0.34			(94.1	)
Return on average assets *		(4.17	)%		0.56		(473		)bp
Return on average common equity *		(55.92	)		5.41		nm
Average shares outstanding — basic		329,818			329,071			0.2	%
Average shares outstanding — diluted		329,818			331,568			(0.5	)

nm-	not meaningful
*   -	ratios are annualized

5 of 9

Synovus

INCOME STATEMENT DATA
(Unaudited)
(Dollars in thousands, except per share data)

	2009						2008								2nd Quarter
	Second			First			Fourth			Third			Second		’09 vs. ’08
	Quarter			Quarter			Quarter			Quarter			Quarter		Change
Interest income (taxable equivalent)	$	385,710			387,574			441,749			456,400			459,274		(16.0	)%
Interest expense		127,883			143,154			182,312			187,425			184,719		(30.8	)
Net interest income (taxable equivalent)		257,827			244,420			259,437			268,975			274,555		(6.1	)
Tax equivalent adjustment		1,219			1,181			1,412			1,177			1,134		7.5
Net interest income		256,608			243,239			258,025			267,798			273,421		(6.1	)
Provision for losses on loans		631,526			290,437			363,867			151,351			93,616		nm
Net interest income (loss) after provision for loan losses		(374,918	)		(47,198	)		(105,842	)		116,447			179,805		(308.5	)
Non-interest income:
Service charges on deposit accounts		29,702			28,699			29,244			28,132			26,070		13.9
Fiduciary and asset management fees		10,657			10,815			11,168			12,095			12,898		(17.4	)
Brokerage and investment banking income		7,521			6,871			7,528			7,898			9,206		(18.3	)
Mortgage banking income		14,590			9,322			5,170			4,476			5,686		156.6
Bankcard fees		13,755			12,681			13,365			13,371			14,198		(3.1	)
Net gains on sales of investment securities available for sale		—			—			45			—			—		nm
Other fee income		8,722			7,690			7,207			8,773			10,081		(13.5	)
Increase in fair value of private equity investments, net		8,090			—			6,996			13,052			—		nm
Proceeds from sale of MasterCard shares		8,351			—			—			—			16,186		(48.4	)
Other non-interest income		6,450			12,670			7,838			11,158			13,373		(51.8	)
Total non-interest income		107,838			88,748			88,561			98,955			107,698		0.1
Non-interest expense:
Salaries and other personnel expense		109,315			111,979			112,586			114,535			109,676		(0.3	)
Net occupancy and equipment expense		30,727			31,647			31,255			31,852			31,126		(1.3	)
FDIC insurance and other regulatory fees		30,061			12,999			6,950			5,960			6,172		387.1
Foreclosed real estate		172,404			46,330			71,915			43,205			13,677		nm
Losses (gains) on other loans held for sale		1,160			(65	)		(35	)		—			9,944		(88.3	)
Visa litigation (recovery) expense		—			—			(6,390	)		6,347			—		nm
Goodwill impairment		—			—			442,730			9,887			27,000		nm
Professional fees		10,355			6,957			9,973			6,909			8,454		22.5
Restructuring charges		397			6,358			2,826			9,048			4,251		(90.7	)
Other operating expenses		41,897			47,151			51,389			47,341			55,664		(24.7	)
Total non-interest expense		396,316			263,356			723,199			275,084			265,964		49.0
Income (loss) before income taxes		(663,396	)		(221,806	)		(740,480	)		(59,682	)		21,539		nm
Income tax (benefit) expense		(79,143	)		(85,077	)		(106,435	)		(24,211	)		9,302		nm
Net income (loss)		(584,253	)		(136,729	)		(634,045	)		(35,471	)		12,237		nm
Net income (loss) attributable to non-controlling interest		2,677			(57	)		1,365			4,650			138		nm
Net income (loss) attributable to controlling interest		(586,930	)		(136,672	)		(635,410	)		(40,121	)		12,099		nm
Dividends and accretion of discount on preferred stock		14,225			14,192			2,057			—			—		nm
Net income (loss) available to common shareholders	$	(601,155	)		(150,864	)		(637,467	)		(40,121	)		12,099		nm
Basic EPS	$	(1.82	)		(0.46	)		(1.93	)		(0.12	)		0.04		nm
Diluted EPS		(1.82	)		(0.46	)		(1.93	)		(0.12	)		0.04		nm
Cash dividends declared per common share		0.01			0.01			0.06			0.06			0.17		(94.1	)
Return on average assets *		(6.76	)%		(1.58	)		(7.17	)		(0.47	)		0.14		nm
Return on average common equity *		(91.66	)		(21.90	)		(76.55	)		(4.74	)		1.40		nm
Average common shares outstanding — basic		329,850			329,785			329,691			329,438			329,173		0.2	%
Average common shares outstanding — diluted		329,850			329,785			329,691			329,438			331,418		(0.5	)

nm -	not meaningful
*    -	ratios are annualized

Synovus 6 of 9

BALANCE SHEET DATA
(Unaudited)
(In thousands, except share data)

	June 30, 2009			December 31, 2008			June 30, 2008
ASSETS
Cash and due from banks	$	442,702			524,327			674,834
Interest bearing funds with
Federal Reserve Bank		770,220			1,206,168			—
Interest earning deposits with banks		7,269			10,805			17,337
Federal funds sold and securities purchased under resale agreements		170,824			388,197			152,177
Trading account assets		20,687			24,513			20,204
Mortgage loans held for sale, at fair value		312,620			133,637			185,245
Other loans held for sale		34,938			3,527			6,365
Investment securities available for sale		3,560,192			3,770,022			3,692,136
Loans, net of unearned income		27,585,741			27,920,177			27,445,891
Allowance for loan losses		(918,723	)		(598,301	)		(417,813	)
Loans, net		26,667,018			27,321,876			27,028,078
Premises and equipment, net		596,172			605,019			581,352
Goodwill		39,280			39,521			492,138
Other intangible assets, net		18,914			21,266			24,860
Other assets		1,708,834			1,737,391			1,352,575
Total assets	$	34,349,670			35,786,269			34,227,301
LIABILITIES AND EQUITY
Liabilities:
Deposits:
Non-interest bearing deposits	$	3,861,782			3,563,619			3,553,342
Interest bearing deposits		23,562,032			25,053,560			22,475,010
Total deposits		27,423,814			28,617,179			26,028,352
Federal funds purchased and other short-term borrowings		1,580,259			725,869			2,287,910
Long-term debt		1,865,491			2,107,173			2,121,625
Other liabilities		424,943			516,541			336,731
Total liabilities		31,294,507			31,966,762			30,774,618
Equity:
Shareholders’ equity:
Cumulative perpetual preferred stock, no par value (1)		923,855			919,635			—
Common stock, par value $1.00 (2)		336,059			336,011			335,826
Additional paid-in capital		1,170,639			1,165,875			1,110,635
Treasury stock, at cost (3)		(114,146	)		(114,117	)		(114,075	)
Accumulated other comprehensive income		105,520			129,253			30,190
Retained earnings		596,434			1,350,501			2,066,015
Total shareholders’ equity		3,018,361			3,787,158			3,428,591
Non-controlling interest in subsidiaries		36,802			32,349			24,092
Total equity		3,055,163			3,819,507			3,452,683
Total liabilities and shareholders’ equity	$	34,349,670			35,786,269			34,227,301

(1)	Preferred shares outstanding: 967,870 at June 30, 2009 and December 31, 2008.
(2)	Common shares outstanding: 330,376,784; 330,334,111; and 330,153,646 at June 30, 2009, December 31, 2008, and June 30, 2008, respectively.
(3)	Treasury shares: 5,682,673; 5,676,830; and 5,672,221 at June 30, 2009, December 31, 2008 and June 30, 2008, respectively.

Synovus 7 of 9

AVERAGE BALANCES AND YIELDS/RATES *

(Unaudited)
(Dollars in thousands)

	2009									2008
	Second			First			Fourth			Third			Second
	Quarter			Quarter			Quarter			Quarter			Quarter
Interest Earning Assets
Taxable Investment Securities	$	3,353,382			3,455,091			3,549,643			3,548,227			3,437,320
Yield		5.16	%		5.22			4.94			5.06			5.16
Tax-Exempt Investment Securities	$	107,626			116,163			122,332			128,241			137,606
Yield (taxable equivalent)		7.08	%		6.91			6.79			6.74			7.34
Trading Account Assets	$	19,984			22,580			29,727			30,584			26,531
Yield		5.57	%		6.02			5.10			6.77			5.88
Commercial Loans	$	23,572,578			23,525,450			23,870,384			23,302,028			23,183,128
Yield		4.72	%		4.77			5.46			5.78			5.96
Consumer Loans	$	4,335,897			4,353,580			4,347,332			4,267,477			4,115,130
Yield		5.38	%		5.50			5.88			6.19			6.29
Allowance for Loan Losses	$	(663,355	)		(627,110	)		(473,875	)		(422,331	)		(397,392	)
Loans, Net	$	27,245,120			27,251,920			27,743,841			27,147,174			26,900,866
Yield		4.96	%		5.01			5.63			5.95			6.12
Mortgage Loans Held for Sale	$	268,933			247,937			98,362			108,873			157,049
Yield		4.94	%		5.46			5.96			6.91			5.86
Federal Funds Sold, Due from Federal Reserve Bank and Other Short-Term Investments	$	996,754			1,214,897			642,396			211,323			201,081
Yield		0.24	%		0.31			0.60			1.88			1.83
Federal Home Loan Bank and Federal Reserve Bank Stock (1)	$	132,346			117,205			121,994			122,088			119,061
Yield		0.54	%		0.66			0.20			3.61			5.71
Total Interest Earning Assets	$	32,124,145			32,425,793			32,308,295			31,296,510			30,979,514
Yield		4.83	%		4.84			5.44			5.81			5.96
Interest Bearing Liabilities
Interest Bearing Demand Deposits	$	3,582,954			3,602,371			3,201,355			3,076,447			3,154,884
Rate		0.45	%		0.49			0.80			1.07			1.10
Money Market Accounts	$	6,241,764			6,272,015			6,129,751			6,771,080			6,826,724
Rate		1.24	%		1.30			1.80			2.19			2.15
Savings Deposits	$	477,752			452,206			442,623			457,526			461,970
Rate		0.15	%		0.16			0.22			0.25			0.25
Time Deposits Under $100,000	$	3,126,984			3,222,601			3,264,401			3,055,465			2,814,714
Rate		3.13	%		3.41			3.64			3.69			3.97
Time Deposits Over $100,000	$	5,355,736			5,555,084			5,386,772			4,731,468			4,316,454
Rate		3.04	%		3.31			3.63			3.79			4.09
National Market Brokered Money Market Accounts	$	1,885,214			2,073,734			1,982,179			1,271,113			1,082,008
Rate		0.75	%		0.82			1.27			2.27			2.54
National Market Brokered Time Deposits	$	3,203,546			3,718,570			4,549,172			3,968,783			3,495,947
Rate		3.09	%		3.38			3.70			3.61			3.64
Total Interest Bearing Deposits	$	23,873,950			24,896,581			24,956,253			23,331,882			22,152,701
Rate		1.96	%		2.16			2.58			2.77			2.82
Federal Funds Purchased and Other Short-Term Liabilities	$	1,166,785			578,717			876,330			1,459,097			2,302,986
Rate		0.36	%		0.59			0.90			1.94			2.03
Long-Term Debt	$	2,090,710			1,964,064			2,106,785			2,119,321			2,048,213
Rate		1.94	%		2.07			3.44			3.32			3.44
Total Interest Bearing Liabilities	$	27,131,445			27,439,362			27,939,368			26,910,300			26,503,900
Rate		1.89	%		2.11			2.59			2.77			2.80
Non-Interest Bearing Demand Deposits	$	3,812,876			3,611,958			3,508,753			3,463,563			3,448,794
Net Interest Margin		3.23	%		3.05			3.20			3.42			3.57

*	Yields and rates are annualized.
(1)	Included as a component of Other Assets on the balance sheet

Synovus 8 of 9

LOANS OUTSTANDING AND NONPERFORMING LOANS COMPOSITION
(Unaudited)
(Dollars in thousands)

	June 30, 2009
				Loans as a %			Total		Nonperforming Loans
				of Total Loans			Nonperforming		as a % of Total
Loan Type	Total Loans			Outstanding			Loans		Nonperforming Loans
Multi-Family	$	838,795			3.0	%	$	23,050		1.5	%
Hotels		1,026,163			3.7			236,087		15.8
Office Buildings		1,110,896			4.0			19,691		1.3
Shopping Centers		1,084,080			3.9			5,820		0.4
Commercial Development		735,834			2.7			44,373		3.0
Warehouses		491,944			1.8			5,729		0.4
Other Investment Property		609,313			2.2			16,647		1.1
Total Investment Properties		5,897,025			21.3			351,397		23.5
1-4 Family Construction		1,224,446			4.4			237,244		15.9
1-4 Family Perm / Mini-Perm		1,429,916			5.2			83,663		5.6
Residential Development		1,739,246			6.3			331,075		22.2
Total 1-4 Family Properties		4,393,608			15.9			651,982		43.7
Land Acquisition		1,619,395			5.9			188,919		12.7
Total Commercial Real Estate		11,910,028			43.1			1,192,298		79.9
Commercial , Financial, and Agricultural		6,545,088			23.7			158,720		10.7
Owner-Occupied		4,829,805			17.5			68,913		4.6
Total Commercial & Industrial		11,374,893			41.2			227,633		15.3
Home Equity		1,729,528			6.3			16,121		1.1
Consumer Mortgages		1,725,223			6.3			47,365		3.2
Credit Card		288,349			1.1			—		—
Other Retail Loans		586,029			2.1			6,850		0.5
Total Retail		4,329,129			15.8			70,336		4.8
Unearned Income		(28,309	)		(0.1	)		—		—
Total	$	27,585,741			100.0	%	$	1,490,267		100.0	%

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

	Total Loans						2Q09 vs. 4Q08						2Q09 vs. 2Q08
Loan Type	June 30, 2009			December 31, 2008			% change (1)			June 30, 2008			% change
Multi-Family	$	838,795			589,708			85.2	%	$	532,345			57.6	%
Hotels		1,026,163			965,886			12.6			755,125			35.9
Office Buildings		1,110,896			1,036,837			14.4			1,003,278			10.7
Shopping Centers		1,084,080			1,090,807			(1.2	)		980,545			10.6
Commercial Development		735,834			763,962			(7.4	)		816,482			(9.9	)
Warehouses		491,944			461,402			13.3			423,465			16.2
Other Investment Property		609,313			614,149			(1.6	)		564,549			7.9
Total Investment Properties		5,897,025			5,522,751			13.7			5,075,789			16.2
1-4 Family Construction		1,224,446			1,611,779			(48.5	)		1,943,120			(37.0	)
1-4 Family Perm / Mini-Perm		1,429,916			1,441,798			(1.7	)		1,387,711			3.0
Residential Development		1,739,246			2,123,669			(36.5	)		2,241,985			(22.4	)
Total 1-4 Family Properties		4,393,608			5,177,246			(30.5	)		5,572,816			(21.2	)
Land Acquisition		1,619,395			1,620,370			(0.1	)		1,650,334			(1.9	)
Total Commercial Real Estate		11,910,028			12,320,367			(6.7	)		12,298,939			(3.2	)
Commercial , Financial, and Agricultural		6,545,088			6,747,928			(6.1	)		6,689,206			(2.2	)
Owner-Occupied		4,829,805			4,499,339			14.8			4,281,469			12.8
Total Commercial & Industrial		11,374,893			11,247,267			2.3			10,970,675			3.7
Home Equity		1,729,528			1,725,075			0.5			1,633,604			5.9
Consumer Mortgages		1,725,223			1,763,449			(4.4	)		1,725,064		nm
Credit Card		288,349			295,055			(4.6	)		299,850			(3.8	)
Other Retail Loans		586,029			606,347			(6.8	)		558,633			4.9
Total Retail		4,329,129			4,389,926			(2.8	)		4,217,151			2.7
Unearned Income		(28,309	)		(37,383	)		(48.9	)		(40,874	)		(30.7	)
Total	$	27,585,741			27,920,177			(2.4	)%	$	27,445,891			0.5	%

(1) Percentage change is annualized.

Synovus   9 of 9

CREDIT QUALITY DATA
(Unaudited)
(Dollars in thousands)

	2009					2008						2nd Quarter
	Second			First		Fourth		Third		Second		’09 vs. ’08
	Quarter			Quarter		Quarter		Quarter		Quarter		Change
Nonperforming Loans	$	1,490,267			1,441,188		921,708		769,950		626,571		137.8	%
Other Loans Held for Sale (1)		34,938			22,751		3,527		13,554		6,365		448.9
Other Real Estate		210,968			287,246		246,121		215,082		197,328		6.9
Nonperforming Assets		1,736,173			1,751,185		1,171,356		998,586		830,264		109.1
Allowance for Loan Losses		918,723			642,422		598,301		463,836		417,813		119.9
Net Charge-Offs — Quarter		355,224			246,314		229,402		105,328		70,652		402.8
Net Charge-Offs — YTD		601,538			246,314		469,195		239,793		134,465		347.4
Net Charge-Offs / Average Loans — Quarter (2)		5.09	%		3.53		3.25		1.53		1.04
Net Charge-Offs / Average Loans — YTD (2)		4.31			3.53		1.71		1.18		0.99
Nonperforming Loans / Loans		5.40			5.20		3.30		2.78		2.28
Nonperforming Assets / Loans, Other Loans Held for Sale & ORE		6.24			6.25		4.16		3.58		3.00
Allowance / Loans		3.33			2.32		2.14		1.68		1.52
Allowance / Nonperforming Loans		61.65			44.58		64.91		60.24		66.68
Past Due Loans over 90 days and Still Accruing		31,018			31,316		38,794		49,868		39,614		(21.7	)%
As a Percentage of Loans Outstanding		0.11			0.11		0.14		0.18		0.14
Total Past Dues Loans and Still Accruing		331,731			587,014		362,538		403,180		365,046		(9.1	)
As a Percentage of Loans Outstanding		1.20			2.12		1.30		1.46		1.33

(1)	Represent other loans that are intended to be sold. Held for sale loans are carried at the lower of cost or fair value.
(2)	Ratio is annualized.

SELECTED CAPITAL INFORMATION (1)
(Unaudited)
(Dollars in thousands)

	June 30, 2009			December 31, 2008		June 30, 2008
Tier 1 Capital	$	2,862,225			3,602,848		2,891,831
Total Risk-Based Capital		3,836,713			4,674,476		3,987,595
Tier 1 Capital Ratio		9.52	%		11.22		8.91
Tier 1 Common Equity		6.41	%		8.33		8.88
Total Risk-Based Capital Ratio		12.76			14.56		12.29
Leverage Ratio		8.25			10.28		8.70
Common Equity as a Percentage of Total Assets (2)		6.21			8.10		10.09
Tangible Common Equity as a Percentage of Tangible Assets (3)		6.05			7.95		8.71
Tangible Common Equity as a Percentage of Risk Weighted Assets (3)		6.90			8.84		9.05
Book Value Per Common Share (4)		6.45			8.78		10.46
Tangible Book Value Per Common Share (3)		6.28			8.60		8.89

(1)	Current quarter regulatory capital information is preliminary.
(2)	Common equity consists of Total Equity less Cummulative Perpetual Perferred 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 Equity less Cummulative Perpetual Preferred Stock divided by total common shares outstanding.