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

Synovus 4 of 8

INCOME STATEMENT DATA
(Unaudited)

(In thousands, except per share data)	2009			2008											1st Quarter
	First			Fourth			Third			Second		First			'09 vs. '08
	Quarter			Quarter			Quarter			Quarter		Quarter			Change
Interest income (taxable equivalent)	$	387,574			441,749			456,400			459,274		505,057			(23.3	)%
Interest expense		143,154			182,312			187,425			184,719		225,232			(36.4	)
Net interest income (taxable equivalent)		244,420			259,437			268,975			274,555		279,825			(12.7	)
Tax equivalent adjustment		1,181			1,412			1,177			1,134		1,176			0.4
Net interest income		243,239			258,025			267,798			273,421		278,649			(12.7	)
Provision for loan losses		290,437			363,867			151,351			93,616		91,049			219.0
Net interest income (loss) after provision for loan losses		(47,198	)		(105,842	)		116,447			179,805		187,600			(125.2	)
Non-interest income:
Service charges on deposit accounts		28,699			29,244			28,132			26,070		28,391			1.1
Fiduciary and asset management fees		10,815			11,168			12,095			12,898		12,621			(14.3	)
Brokerage and investment banking revenue		6,871			7,528			7,898			9,206		8,487			(19.0	)
Mortgage banking income		9,322			5,170			4,476			5,686		8,161			14.2
Bankcard fees		12,681			13,365			13,371			14,198		12,218			3.8
Net gains on sales of investment securities available for sale		—			45			—			—		—		nm
Other fee income		7,690			7,207			8,773			10,081		11,185			(31.2	)
Increase in fair value of private equity investments, net		—			6,996			13,052			—		4,946		nm
Proceeds from sale of MasterCard shares		—			—			—			16,186		—		nm
Proceeds from redemption of Visa shares		—			—			—			—		38,542		nm
Other non-interest income		12,670			7,838			11,158			13,373		15,424			(17.9	)
Total non-interest income		88,748			88,561			98,955			107,698		139,975			(36.6	)
Non-interest expense:
Salaries and other personnel expense		111,979			112,586			114,535			109,676		122,130			(8.3	)
Net occupancy and equipment expense		31,647			31,255			31,852			31,126		30,211			4.8
FDIC insurance and other regulatory fees		12,999			6,950			5,960			6,172		6,079			113.8
Foreclosed real estate		46,330			71,915			43,205			13,677	7,881				487.9
Losses on impaired loans held for sale		(65	)		(35	)		—			9,944		—		nm
Visa litigation (recovery) expense		—			(6,390	)		6,347			—		(17,430	)	nm
Goodwill impairment		—			442,730			9,887			27,000		—		nm
Professional fees		6,957			9,973			6,909			8,454		4,940			40.8
Restructuring charges		6,358			2,826			9,048			4,251		—		nm
Other operating expenses		47,151			51,389			47,341			55,664		47,563			(0.9	)
Total non-interest expense		263,356			723,199			275,084			265,964		201,374			30.8
Income (loss) before income taxes		(221,806	)		(740,480	)		(59,682	)		21,539		126,201			(275.8	)
Income tax (benefit) expense		(85,077	)		(106,435	)		(24,211	)		9,302		43,648			(294.9	)
Net income (loss)		(136,729	)		(634,045	)		(35,471	)		12,237		82,553			(265.6	)
Net income (loss) attributable to non-controlling interest		(57	)		1,365			4,650			138		1,559			(103.7	)
Net income (loss) attributable to controlling interest		(136,672	)		(635,410	)		(40,121	)		12,099		80,994			(268.7	)
Dividends and accretion of discount on preferred stock		14,192			2,057			—			—		—		nm
Net income (loss) available to common shareholders	$	(150,864	)		(637,467	)		(40,121	)		12,099		80,994			(286.3	)
Basic EPS	$	(0.46	)		(1.93	)		(0.12	)		0.04		0.25		nm
Diluted EPS		(0.46	)		(1.93	)		(0.12	)		0.04		0.24		nm
Cash dividends declared per common share		0.01			0.06			0.06			0.17		0.17			(94.1	)
Return on average assets *		(1.58)	%		(7.17	)		(0.47	)		0.14		0.99		nm
Return on average common equity *		(21.90	)		(76.55	)		(4.74	)		1.40		9.43		nm
Average common shares outstanding — basic		329,785			329,691			329,438			329,173		328,970			0.2	%
Average common shares outstanding — diluted		329,785			329,691			329,438			331,418		331,719			(0.6	)

nm – not meaningful

* – ratios are annualized

Synovus 5 of 8

BALANCE SHEET DATA	March 31, 2009			December 31, 2008			March 31, 2008
(Unaudited)
(In thousands, except share data)
ASSETS
Cash and due from banks	$	437,788			524,327			589,640
Interest bearing funds with Federal Reserve Bank		362,038			1,206,168			—
Interest earning deposits with banks		95,757			10,805			2,440
Federal funds sold and securities purchased under resale agreements		155,549			388,197			101,855
Trading account assets		15,013			24,513			34,730
Mortgage loans held for sale		223,093			133,637			141,598
Impaired loans held for sale		22,751			3,527			42,270
Investment securities available for sale		3,778,473			3,892,148			3,779,877
Loans, net of unearned income		27,730,272			27,920,177			27,117,510
Allowance for loan losses		(642,422	)		(598,301	)		(394,848	)
Loans, net		27,087,850			27,321,876			26,722,662
Premises and equipment, net		603,555			605,019			565,887
Goodwill		39,521			39,521			519,138
Other intangible assets, net		20,064			21,266			26,156
Other assets		1,705,980			1,615,265			1,233,637
Total assets	$	34,547,432			35,786,269			33,759,890
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Non-interest bearing deposits	$	3,785,089			3,563,619			3,508,246
Interest bearing deposits		24,162,897			25,053,560			22,154,941
Total deposits		27,947,986			28,617,179			25,663,187
Federal funds purchased and securities sold under repurchase agreements		577,269			725,869			2,108,109
Long-term debt		1,869,884			2,107,173			1,992,750
Other liabilities		480,895			516,541			442,270
Total liabilities		30,876,034			31,966,762			30,206,316
Shareholders’ equity:
Cumulative perpetual preferred stock, no par value(1)		921,728			919,635			—
Common stock, par value $1.00(2)		336,069			336,011			335,750
Additional paid-in capital		1,168,409			1,165,875			1,106,049
Treasury stock(3)		(114,139	)		(114,117	)		(113,944	)
Accumulated other comprehensive income		125,013			129,253			92,076
Retained earnings		1,200,899			1,350,501			2,110,871
Total shareholders’ equity		3,637,979			3,787,158			3,530,802
Non-controlling interest		33,419			32,349			22,772
Total equity		3,671,398			3,819,507			3,553,574
Total liabilities and shareholders’ equity	$	34,547,432			35,786,269			33,759,890

(1)	Preferred shares outstanding: 967,870 at March 31, 2009 and December 31, 2008.
(2)	Common shares outstanding: 330,386,502; 330,334,111; and 330,088,033 at March 31, 2009, December 31, 2008, and March 31, 2008, respectively.
(3)	Treasury shares: 5,682,301; 5,676,830; and 5,661,538 at March 31, 2009, December 31, 2008 and March 31, 2008, respectively.

Synovus 6 of 8

AVERAGE BALANCES AND YIELDS/RATES *
(Unaudited)
(Dollars in thousands)

	2009			2008
	First			Fourth			Third			Second			First
	Quarter			Quarter			Quarter			Quarter			Quarter
Interest Earning Assets
Taxable Investment Securities	$	3,572,296			3,671,637			3,670,315			3,556,381			3,485,370
Yield		5.06	%		4.78			4.91			5.00			5.01
Tax-Exempt Investment Securities	$	116,163			122,332			128,241			137,606			154,408
Yield (taxable equivalent)		6.91	%		6.79			6.74			7.34			7.00
Trading Account Assets	$	22,580			29,727			30,584			26,531			36,652
Yield		6.02	%		5.10			6.77			5.88			6.96
Commercial Loans	$	23,525,450			23,870,384			23,302,028			23,183,128			22,763,954
Yield		4.77	%		5.46			5.78			5.96			6.79
Consumer Loans	$	4,353,580			4,347,332			4,267,477			4,115,130			4,026,942
Yield		5.50	%		5.88			6.19			6.29			7.05
Allowance for Loan Losses	$	(627,110	)		(473,875	)		(422,331	)		(397,392	)		(381,695	)
Loans, Net	$	27,251,920			27,743,841			27,147,174			26,900,866			26,409,201
Yield		5.01	%		5.63			5.95			6.12			6.94
Mortgage Loans Held for Sale	$	247,937			98,362			108,873			157,049			121,806
Yield		5.46	%		5.96			6.91			5.86			5.57
Federal Funds Sold, Due from Federal Reserve Bank and Other Short-Term Investments	$	1,214,897			642,396			211,323			201,081			128,381
Yield		0.31	%		0.60			1.88			1.83			3.41
Total Interest Earning Assets	$	32,425,793			32,308,295			31,296,510			30,979,514			30,335,818
Yield		4.84	%		5.44			5.81			5.96			6.69
Interest Bearing Liabilities
Interest Bearing Demand Deposits	$	3,602,371			3,201,355			3,076,447			3,154,884			3,200,650
Rate		0.49	%		0.80			1.07			1.10			1.56
Money Market Accounts	$	8,345,749			8,111,930			8,042,193			7,908,732			7,872,029
Rate		1.18	%		1.67			2.21			2.21			3.04
Savings Deposits	$	452,206			442,623			457,526			461,970			448,581
Rate		0.16	%		0.22			0.25			0.25			0.28
Time Deposits Under $100,000	$	3,222,601			3,264,401			3,055,465			2,814,714			2,777,764
Rate		3.41	%		3.64			3.69			3.97			4.44
Time Deposits Over $100,000	$	9,273,654			9,935,944			8,700,251			7,812,401			7,472,392
Rate		3.34	%		3.66			3.71			3.89			4.54
Total Interest Bearing Deposits	$	24,896,581			24,956,253			23,331,882			22,152,701			21,771,416
Rate		2.16	%		2.58			2.77			2.82			3.46
Federal Funds Purchased and Other Short-Term Liabilities	$	578,717			876,330			1,459,097			2,302,986			2,253,640
Rate		0.59	%		0.90			1.94			2.03			3.18
Long-Term Debt	$	1,964,064			2,106,785			2,119,321			2,048,213			1,930,412
Rate		2.07	%		3.44			3.32			3.44			4.21
Total Interest Bearing Liabilities	$	27,439,362			27,939,368			26,910,300			26,503,900			25,955,468
Rate		2.11	%		2.59			2.77			2.80			3.48
Non-Interest Bearing Demand Deposits	$	3,611,958			3,508,753			3,463,563			3,448,794			3,338,106
Net Interest Margin		3.05	%		3.20			3.42			3.57			3.71

* Yields and rates are annualized.

Synovus 7 of 8

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

	March 31, 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	$	679,526			2.5	%	$	21,860		1.5	%
Hotels		1,041,877			3.8			229,283		15.9
Office Buildings		1,085,110			3.9			9,980		0.7
Shopping Centers		1,103,963			4.0			44,298		3.1
Commercial Development		788,278			2.8			47,279		3.3
Warehouses		466,134			1.7			3,281		0.2
Other Investment Property		638,747			2.3			7,718		0.5
Total Investment Properties		5,803,635			21.0			363,699		25.2
1-4 Family Construction		1,485,991			5.4			287,616		20.0
1-4 Family Perm / Mini-Perm		1,370,838			4.9			52,567		3.7
Residential Development		1,970,009			7.1			316,855		22.0
Total 1-4 Family Properties		4,826,838			17.4			657,038		45.7
Land Acquisition		1,649,217			5.9			157,690		10.9
Total Commercial Real Estate		12,279,690			44.3			1,178,427		81.8
Commercial, Financial, and Agricultural		6,578,747			23.7			135,977		9.4
Owner-Occupied		4,577,238			16.5			66,320		4.6
Total Commercial & Industrial		11,155,985			40.2			202,297		14.0
Home Equity		1,718,918			6.2			11,932		0.8
Consumer Mortgages		1,734,439			6.3			41,519		2.9
Credit Card		285,099			1.0			—		—
Other Retail Loans		588,163			2.1			7,013		0.5
Total Retail		4,326,619			15.6			60,464		4.2
Unearned Income		(32,022	)		(0.1	)		—		—
Total	$	27,730,272			100.0	%	$	1,441,188		100.0	%

LOANS OUTSTANDING BY TYPE COMPARISON
(Unaudited)

(Dollars in thousands)

	Total Loans						1Q09 vs. 4Q08						1Q09 vs. 1Q08
Loan Type	March 31, 2009			December 31, 2008			% change (1)			March 31, 2008			% change
Multi-Family	$	679,526			589,708			61.8	%	$	510,069			33.2	%
Hotels		1,041,877			965,886			31.9			704,553			47.9
Office Buildings		1,085,110			1,036,837			18.9			1,020,981			6.3
Shopping Centers		1,103,963			1,090,807			4.9			904,624			22.0
Commercial Development		788,278			763,962			12.9			816,987			(3.5	)
Warehouses		466,134			461,402			4.2			407,974			14.3
Other Investment Property		638,747			614,149			16.2			531,229			20.2
Total Investment Properties		5,803,635			5,522,751			20.6			4,896,417			18.5
1-4 Family Construction		1,485,991			1,611,779			(31.7	)		2,111,556			(29.6	)
1-4 Family Perm / Mini-Perm		1,370,838			1,441,798			(20.0	)		1,348,808			1.6
Residential Development		1,970,009			2,123,669			(29.3	)		2,323,896			(15.2	)
Total 1-4 Family Properties		4,826,838			5,177,246			(27.4	)		5,784,260			(16.6	)
Land Acquisition		1,649,217			1,620,370			7.2			1,619,409			1.8
Total Commercial Real Estate		12,279,690			12,320,367			(1.3	)		12,300,086			(0.2	)
Commercial, Financial, and Agricultural		6,578,747			6,747,928			(10.2	)		6,581,535			nm
Owner-Occupied		4,577,238			4,499,339			7.0			4,227,358			8.3
Total Commercial & Industrial		11,155,985			11,247,267			(3.3	)		10,808,893			3.2
Home Equity		1,718,918			1,725,075			(1.4	)		1,585,332			8.4
Consumer Mortgages		1,734,439			1,763,449			(6.7	)		1,664,413			4.2
Credit Card		285,099			295,055			(13.7	)		297,099			(4.0	)
Other Retail Loans		588,163			606,347			(12.2	)		505,757			16.3
Total Retail		4,326,619			4,389,926			(5.8	)		4,052,601			6.8
Unearned Income		(32,022	)		(37,383	)		(58.2	)		(44,070	)		(27.3	)
Total	$	27,730,272			27,920,177			(2.8	)%	$	27,117,510			2.3	%

(1) Percentage change is annualized.

Synovus 8 of 8

CREDIT QUALITY DATA (Unaudited) (Dollars in thousands)	2009			2008								1st Quarter
	First			Fourth		Third		Second		First		'09 vs. '08
	Quarter			Quarter		Quarter		Quarter		Quarter		Change
Nonperforming Loans	$	1,441,188			921,708		769,950		626,571		515,302		179.7	%
Impaired Loans Held for Sale(1)		22,751			3,527		13,554		6,365		42,270		(46.2	)
Other Real Estate		287,246			246,121		215,082		197,328		121,753		135.9
Nonperforming Assets		1,751,185			1,171,356		998,586		830,264		679,325		157.8
Allowance for Loan Losses		642,422			598,301		463,836		417,813		394,848		62.7
Net Charge-Offs — Quarter		246,314			229,402		105,328		70,652		63,813		286.0
Net Charge-Offs — YTD		246,314			469,195		239,793		134,465		63,813		286.0
Net Charge-Offs/Average Loans — Quarter (2)		3.53	%		3.25		1.53		1.04		0.95
Net Charge-Offs/Average Loans — YTD (2)		3.53			1.71		1.18		0.99		0.95
Nonperforming Loans/Loans		5.20			3.30		2.78		2.28		1.90
Nonperforming Assets/Loans, Impaired Loans Held for Sale & ORE		6.25			4.16		3.58		3.00		2.49
Allowance/Loans		2.32			2.14		1.68		1.52		1.46
Allowance/Nonperforming Loans		44.58			64.91		60.24		66.68		76.62
Past Due Loans over 90 days and Still Accruing		31,316			38,794		49,868		39,614		43,009		(27.2	)%
As a Percentage of Loans Outstanding		0.11			0.14		0.18		0.14		0.16
Total Past Dues Loans and Still Accruing		587,014			362,538		403,180		365,046		377,999		55.3
As a Percentage of Loans Outstanding		2.12			1.30		1.46		1.33		1.39

(1)	Represent impaired 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)

	March 31, 2009			December 31, 2008		March 31, 2008
Tier 1 Capital	$	3,454,987			3,602,848		2,904,864
Total Risk-Based Capital		4,440,805			4,674,476		3,989,712
Tier 1 Capital Ratio		11.05	%		11.22		9.07
Total Risk-Based Capital Ratio		14.21			14.56		12.46
Leverage Ratio		9.88			10.28		8.96
Common Equity as a Percentage of Total Assets		7.96			8.10		10.52
Tangible Common Equity as a Percentage of Tangible Assets (2)		7.80			7.95		9.05
Tangible Common Equity as a Percentage of Risk Weighted Assets (2)		8.61			8.84		9.40
Book Value Per Common Share		8.32			8.78		10.76
Tangible Book Value Per Common Share (2)		8.14			8.60		9.11

(1)	Current quarter regulatory capital information is preliminary.
(2)	Excludes the carrying value of goodwill and other intangible assets from shareholders’ equity and total assets.