Synovus Financial (SNV) 8-K Synovus Reports Results for Second Quarter of 2010

Exhibit 99.2

Synovus

INCOME STATEMENT DATA		Six Months Ended
(Unaudited)
(Dollars in thousands, except per share data)		June 30,
		2010		2009	Change
Interest income (taxable equivalent)	$	682,701		773,284	(11.7)	%
Interest expense		181,629		271,037	(33.0)
Net interest income (taxable equivalent)		501,072		502,247	(0.2)
Tax equivalent adjustment		2,167		2,399	(9.7)
Net interest income		498,905		499,848	(0.2)
Provision for losses on loans		639,851		921,963	(30.6)
Net interest expense after provision for losses on loans		(140,946)		(422,115)	(66.6)
Non-interest income:
Service charges on deposit accounts		54,155		58,401	(7.3)
Fiduciary and asset management fees		22,695		21,471	5.7
Brokerage and investment banking income		12,699		14,393	(11.8)
Mortgage banking income		12,132		23,912	(49.3)
Bankcard fees		19,315		17,505	10.3
Investment securities losses, net		(431)		-	nm
Other fee income		10,932		16,412	(33.4)
Increase in fair value of private equity investments, net		2,181		8,090	(73.0)
Gain from sale of MasterCard shares		-		8,351	nm
Other non-interest income		10,013		19,054	(47.4)
Total non-interest income		143,691		187,589	(23.4)
Non-interest expense:
Salaries and other personnel expense		207,951		219,594	(5.3)
Net occupancy and equipment expense		60,565		62,029	(2.4)
FDIC insurance and other regulatory fees		36,615		43,060	(15.0)
Foreclosed real estate expense		91,948		218,734	(58.0)
Losses on other loans held for sale, net		73		1,095	(93.3)
Goodwill impairment		-		241	nm
Professional fees		20,976		17,285	21.4
Data processing expense		22,007		22,321	(1.4)
Restructuring charges		-		6,755	nm
Other operating expenses		71,424		63,864	11.8
Total non-interest expense		511,559		654,978	(21.9)
Loss from continuing operations before income taxes		(508,814)		(889,504)	(42.8)
Income tax benefit		(21,395)		(165,968)	(87.1)
Loss from continuing operations		(487,419)		(723,536)	(32.6)
Income from discontinued operations, net of income taxes		43,162		2,555	nm
Net loss		(444,257)		(720,981)	(38.4)
Net (loss) income attributable to non-controlling interest		(590)		2,620	(122.5)
Net loss attributable to controlling interest		(443,667)		(723,601)	(38.7)
Dividends and accretion of discount on preferred stock		28,685		28,417	0.9
Net loss attributable to common shareholders	$	(472,352)		(752,018)	(37.2)
Basic EPS
Net loss from continuing operations attributable to common shareholders	$	(0.88)		(2.29)	61.6
Net loss attributable to common shareholders		(0.81)		(2.28)	64.5
Diluted EPS
Net loss from continuing operations attributable to common shareholders		(0.88)		(2.29)	61.6
Net loss attributable to common shareholders		(0.81)		(2.28)	64.5
Cash dividends declared per common share		0.02		0.02	-
Return on average assets *		(3.02)	%	(4.18)	116	bp
Return on average common equity *		(50.63)		(56.89)	nm
Average common shares outstanding - basic		583,697		329,818	77.0	%
Average common shares outstanding - diluted		583,697		329,818	77.0

nm - not meaningful

* - ratios are annualized

Synovus

INCOME STATEMENT DATA
(Unaudited)
(Dollars in thousands, except per share data)		2010		2009			2nd Quarter
		Second   Quarter	First     Quarter	Fourth     Quarter	Third     Quarter	Second     Quarter	’10 vs. ’09     Change
Interest income (taxable equivalent)	$	338,795	343,906	362,911	377,839	385,710	(12.2)	%
Interest expense		87,700	93,928	105,853	121,989	127,883	(31.4)
Net interest income (taxable equivalent)		251,095	249,978	257,058	255,850	257,827	(2.6)
Tax equivalent adjustment		1,056	1,111	1,227	1,219	1,219	(13.4)
Net interest income		250,039	248,867	255,831	254,631	256,608	(2.6)
Provision for losses on loans		298,904	340,948	387,114	496,522	631,526	(52.7)
Net interest expense after provision for losses on loans		(48,865)	(92,081)	(131,283)	(241,891)	(374,918)	87.0
Non-interest income:
Service charges on deposit accounts		27,876	26,280	29,651	29,699	29,702	(6.1)
Fiduciary and asset management fees		11,357	11,338	11,455	11,244	10,657	6.6
Brokerage and investment banking income		6,768	5,931	7,035	7,047	7,521	(10.0)
Mortgage banking income		6,318	5,814	7,572	7,037	14,590	(56.7)
Bankcard fees		9,800	9,515	9,521	9,114	9,144	7.2
Investment securities gains (losses), net		17	(448)	(663)	14,730	-	nm
Other fee income		5,402	5,530	7,055	7,733	8,722	(38.1)
Increase (decrease) in fair value of private equity     investments, net		1,283	899	142	(6,853)	8,090	(84.1)
Gain from sale of MasterCard shares		-	-	-	-	8,351	nm
Gain from sale of Visa shares		-	-	51,900	-	-	nm
Other non-interest income		5,174	4,839	13,179	6,484	6,425	(19.5)
Total non-interest income		73,995	69,698	136,847	86,235	103,202	(28.3)
Non-interest expense:
Salaries and other personnel expense		103,929	104,022	100,575	105,001	108,508	(4.2)
Net occupancy and equipment expense		30,588	29,978	29,861	31,217	30,544	0.1
FDIC insurance and other regulatory fees		18,970	17,646	17,913	15,341	30,061	(36.9)
Foreclosed real estate expense		46,440	45,507	34,098	101,437	172,404	(73.1)
Losses on other loans held for sale, net		12	61	-	608	1,160	(99.0)
Visa litigation recovery		-	-	(2,374)	(4,067)	-	nm
Goodwill impairment		-	-	14,849	-	241	nm
Professional fees		11,595	9,380	10,397	11,121	10,340	12.1
Data processing expense		11,323	10,683	11,615	11,194	11,166	1.4
Restructuring charges		-	-	(347)	(413)	397	nm
Other operating expenses		35,905	35,520	32,906	45,381	29,114	23.3
Total non-interest expense		258,762	252,797	249,493	316,820	393,935	(34.3)
Loss from continuing operations before income taxes		(233,632)	(275,180)	(243,929)	(472,476)	(665,651)	64.9
Income tax (benefit) expense		(5,057)	(16,337)	25,518	(31,528)	(80,059)	(93.7)
Loss from continuing operations		(228,575)	(258,843)	(269,447)	(440,948)	(585,592)	61.0
Income from discontinued operations, net of income taxes		-	43,161	889	1,146	1,340	nm

Net loss		(228,575)		(215,682)		(268,558)	(439,802)	(584,252)	60.9
Net (loss) income attributable to non-controlling interest		(381)		(209)		(1)	(255)	2,677	(114.2)
Net loss attributable to controlling interest		(228,194)		(215,473)		(268,557)	(439,547)	(586,929)	61.1
Dividends and accretion of discount on preferred stock		14,360		14,325		14,291	14,258	14,225	0.9
Net loss attributable to common shareholders	$	(242,554)		(229,798)		(282,848)	(453,805)	(601,154)	59.7
Basic EPS
Net loss from continuing operations attributable to     common shareholders	$	(0.36)		(0.56)		(0.58)	(1.32)	(1.83)	80.3	%
Net loss attributable to common shareholders		(0.36)		(0.47)		(0.58)	(1.32)	(1.82)	80.2
Diluted EPS
Net loss from continuing operations attributable to     common shareholders		(0.36)		(0.56)		(0.58)	(1.32)	(1.83)	80.3
Net loss attributable to common shareholders		(0.36)		(0.47)		(0.58)	(1.32)	(1.82)	80.2
Cash dividends declared per common share		0.01		0.01		0.01	0.01	0.01	-
Return on average assets *		(2.81)	%	(3.22)	%	(3.18)	(5.13)	(6.77)	396	bp
Return on average common equity *		(43.59)		(59.10)		(53.25)	(90.59)	(92.07)	nm
Average common shares outstanding - basic		676,753		489,607		486,104	344,626	329,850	105.2	%
Average common shares outstanding - diluted		676,753		489,607		486,104	344,626	329,850	105.2

nm - not meaningful

* - ratios are annualized

Synovus

BALANCE SHEET DATA		June 30, 2010	December 31, 2009	June 30, 2009
(Unaudited)
(In thousands, except share data)
ASSETS
Cash and due from banks	$	589,158	564,482	442,702
Interest bearing funds with Federal Reserve Bank		3,657,548	1,901,847	770,220
Interest earning deposits with banks		10,608	12,534	7,269
Federal funds sold and securities purchased under resale agreements		159,993	203,959	170,824
Trading account assets, at fair value		20,009	14,370	20,687
Mortgage loans held for sale, at fair value		144,705	138,056	312,620
Other loans held for sale		50,208	36,816	34,938
Investment securities available for sale, at fair value		3,328,426	3,188,735	3,560,192
Loans, net of unearned income		23,342,945	25,383,068	27,585,741
Allowance for loan losses		(834,522)	(943,725)	(918,723)
Loans, net		22,508,423	24,439,343	26,667,018
Premises and equipment, net		565,981	580,375	596,172
Goodwill		24,431	24,431	39,280
Other intangible assets, net		14,505	16,649	18,914
Other assets		1,308,345	1,709,821	1,708,834
Total assets	$	32,382,340	32,831,418	34,349,670
LIABILITIES AND EQUITY
Liabilities:
Deposits:
Non-interest bearing deposits	$	4,250,514	4,172,697	3,861,782
Interest bearing deposits		22,007,049	23,260,836	23,562,032
Total deposits		26,257,563	27,433,533	27,423,814
Federal funds purchased and other short-term borrowings		476,598	475,062	1,580,259
Long-term debt		1,876,571	1,751,592	1,865,491
Other liabilities		325,374	299,730	424,943
Total liabilities		28,936,106	29,959,917	31,294,507
Equity:
Shareholders’ equity:
Cumulative perpetual preferred stock, no par value (1)		932,695	928,207	923,855
Common stock, par value $1.00 (2)		790,749	495,514	336,059
Additional paid-in capital		2,346,901	1,605,097	1,170,639
Treasury stock, at cost (3)		(114,174)	(114,155)	(114,146)
Accumulated other comprehensive income		101,073	84,806	105,520
(Accumulated deficit) retained earnings		(633,312)	(148,428)	596,434
Total shareholders’ equity		3,423,932	2,851,041	3,018,361
Non-controlling interest in subsidiaries		22,302	20,460	36,802
Total equity		3,446,234	2,871,501	3,055,163
Total liabilities and equity	$	32,382,340	32,831,418	34,349,670

(1) Preferred shares outstanding: 967,870

(2) Common shares outstanding: 785,056,302; 489,828,319; and 330,376,784 at June 30, 2010, December 31, 2009, and June 30, 2009, respectively.

(3) Treasury shares: 5,692,422; 5,685,638; and 5,682,673 at June 30, 2010, December 31, 2009, and June 30, 2009, respectively.

Synovus

AVERAGE BALANCES AND YIELDS/RATES *

(Unaudited)

(Dollars in thousands)

	2010						2009
		Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Interest Earning Assets
Taxable investment securities	$	3,068,634			2,952,188		2,983,914		3,209,718		3,353,382
Yield		4.40		%	4.70		4.79		5.06		5.16
Tax-exempt investment securities	$	66,125			72,041		88,848		98,435		107,626
Yield (taxable equivalent)		6.85		%	7.16		7.03		7.06		7.08
Trading account assets	$	16,763			14,881		14,356		13,439		19,984
Yield		5.47		%	5.30		5.60		8.22		5.57
Commercial loans	$	19,982,523			20,880,069		21,722,140		22,850,126		23,572,578
Yield		4.92		%	4.85		4.82		4.73		4.72
Consumer loans	$	4,100,458			4,174,320		4,249,316		4,303,592		4,335,897
Yield		5.33		%	5.36		5.32		5.37		5.38
Allowance for loan losses	$	(964,212	)		(951,552	)	(906,484	)	(905,700	)	(663,355	)
Loans, net	$	23,118,769			24,102,837		25,064,972		26,248,018		27,245,120
Yield		5.21		%	5.15		5.10		5.01		4.96
Mortgage loans held for sale	$	131,700			96,440		114,906		194,158		268,933
Yield		5.54		%	5.49		5.29		5.39		4.94
Federal funds sold, due from Federal Reserve Bank, and other short-term investments	$	3,591,353			2,435,880		2,995,367		1,653,546		996,754
Yield		0.25		%	0.24		0.24		0.24		0.24
Federal Home Loan Bank and Federal Reserve Bank stock (1)	$	140,209			142,524		140,550		139,230		132,346
Yield		0.82		%	0.97		1.01		1.38		0.54
Total interest earning assets	$	30,133,553			29,816,791		31,402,913		31,556,544		32,124,145
Yield		4.51		%	4.67		4.59		4.76		4.83
Interest Bearing Liabilities
Interest bearing demand deposits	$	3,617,669			3,636,437		3,851,237		3,310,924		3,582,954
Rate		0.42		%	0.42		0.41		0.42		0.45
Money market accounts	$	6,606,161			6,450,696		6,420,003		6,309,578		6,241,764
Rate		1.07		%	1.19		1.21		1.23		1.24
Savings deposits	$	495,901			476,007		469,526		477,909		477,752
Rate		0.15		%	0.15		0.15		0.15		0.15
Time deposits under $100,000	$	2,626,852			2,726,002		2,851,913		3,030,346		3,126,984
Rate		2.00		%	2.17		2.44		2.86		3.13
Time deposits over $100,000	$	4,561,517			4,770,429		4,909,253		5,281,529		5,355,736
Rate		1.95		%	2.05		2.32		2.73		3.04
National market brokered money market accounts	$	833,811			1,047,417		1,218,363		1,365,477		1,885,214
Rate		0.83		%	0.74		0.75		0.77		0.75
National market brokered time deposits	$	3,681,660			3,871,581		4,011,648		3,941,977		3,203,546
Rate		1.90		%	2.13		2.41		2.66		3.09
Total interest bearing deposits	$	22,423,571			22,978,569		23,731,943		23,717,740		23,873,950
Rate		1.36		%	1.48		1.62		1.85		1.96
Federal funds purchased and other short-term liabilities	$	493,602			472,691		729,988		1,194,759		1,166,785
Rate		0.44		%	0.47		0.45		0.37		0.36
Long-term debt	$	1,882,358			1,805,363		1,897,915		1,906,320		2,090,710
Rate		2.36		%	2.17		1.75		2.14		1.94
Total interest bearing liabilities	$	24,799,531			25,256,623		26,359,846		26,818,819		27,131,445
Rate		1.42		%	1.51		1.59		1.80		1.89
Non-interest bearing demand deposits	$	4,271,444			4,243,622		4,162,027		4,069,108		3,812,876
Net interest margin		3.34		%	3.39		3.25		3.22		3.23

* Yields and rates are annualized.

(1) Included as a component of Other Assets on the balance sheet

Synovus

LOANS OUTSTANDING AND NONPERFORMING LOANS COMPOSITION

(Unaudited)

(Dollars in thousands)

		June 30, 2010
Loan Type		Total Loans	Loans as a %     of Total Loans     Outstanding			Total Nonperforming Loans	Nonperforming Loans as a % of Total Nonperforming Loans
Multi-Family	$	893,305	3.8	%	$	10,522	0.8	%
Hotels		983,848	4.2			112,879	8.6
Office Buildings		913,616	3.9			24,143	1.8
Shopping Centers		1,162,817	5.0			27,617	2.1
Commercial Development		485,206	2.1			80,931	6.2
Warehouses		525,581	2.3			5,601	0.4
Other Investment Property		522,266	2.2			26,025	2.0
Total Investment Properties		5,486,639	23.5			287,718	21.9
1-4 Family Construction		458,540	2.0			107,472	8.2
1-4 Family Perm / Mini-Perm		1,197,164	5.1			69,371	5.3
Residential Development		999,792	4.3			292,332	22.3
Total 1-4 Family Properties		2,655,496	11.4			469,175	35.8
Land Acquisition		1,433,290	6.1			252,563	19.3
Total Commercial Real Estate		9,575,425	41.0			1,009,456	77.0
Commercial , Financial, and Agricultural		5,497,933	23.6			152,668	11.7
Owner-Occupied		4,222,429	18.1			76,596	5.9
Total Commercial & Industrial		9,720,362	41.7			229,264	17.6
Home Equity		1,680,658	7.2			17,669	1.3
Consumer Mortgages		1,546,977	6.6			48,048	3.7
Credit Card		285,749	1.2			-	-
Other Retail Loans		548,980	2.4			5,507	0.4
Total Retail		4,062,364	17.4			71,224	5.4
Unearned Income		(15,206)	(0.1)			-	-
Total	$	23,342,945	100.0	%	$	1,309,944	100.0	%

LOANS OUTSTANDING BY TYPE COMPARISON

(Unaudited)

(Dollars in thousands)

		Total Loans		2Q10 vs. 4Q09				2Q10 vs. 2Q09
Loan Type		June 30, 2010	December 31, 2009	% change (1)			June 30, 2009	% change
Multi-Family	$	893,305	946,598	(22.6	)  %	$	852,236	4.8	%
Hotels		983,848	1,060,837	(29.1	)		1,086,153	(9.4)
Office Buildings		913,616	1,034,934	(47.0	)		1,144,981	(20.2)
Shopping Centers		1,162,817	1,149,245	4.7			1,182,779	(1.7)
Commercial Development		485,206	546,055	(44.7	)		676,658	(28.3)
Warehouses		525,581	556,826	(22.5	)		555,178	(5.3)
Other Investment Property		522,266	592,937	(47.8	)		668,595	(21.9)
Total Investment Properties		5,486,639	5,887,432	(27.3	)		6,166,580	(11.0)
1-4 Family Construction		458,540	714,411	(143.7	)		1,205,415	(62.0)
1-4 Family Perm / Mini-Perm		1,197,164	1,281,411	(26.4	)		1,427,863	(16.2)
Residential Development		999,792	1,334,859	(100.7	)		1,715,248	(41.7)
Total 1-4 Family Properties		2,655,496	3,330,681	(81.3	)		4,348,526	(38.9)
Land Acquisition		1,433,290	1,510,981	(20.6	)		1,699,771	(15.7)
Total Commercial Real Estate		9,575,425	10,729,094	(43.1	)		12,214,877	(21.6)
Commercial , Financial, and Agricultural		5,497,933	6,015,445	(34.5	)		6,425,610	(14.4)
Owner-Occupied		4,222,429	4,445,648	(20.1	)		4,644,433	(9.1)
Total Commercial & Industrial		9,720,362	10,461,093	(28.4	)		11,070,043	(12.2)
Home Equity		1,680,658	1,714,994	(8.0	)		1,729,528	(2.8)
Consumer Mortgages		1,546,977	1,637,978	(22.3	)		1,725,223	(10.3)
Credit Card		285,749	294,126	(11.4	)		288,349	(0.9)
Other Retail Loans		548,980	565,131	(11.5	)		586,030	(6.3)
Total Retail		4,062,364	4,212,229	(14.3	)		4,329,130	(6.2)
Unearned Income		(15,206)	(19,348)	(85.9	)		(28,309)	(46.3)
Total	$	23,342,945	25,383,068	(32.2	)  %	$	27,585,741	(15.4	)  %

(1) Percentage change is annualized.

Synovus

  CREDIT QUALITY DATA

  (Unaudited)

(Dollars in thousands)	2010				2009			2nd Quarter
	Second Quarter			First Quarter	Fourth Quarter	Third Quarter	Second Quarter	’10 vs. ’09     Change
Nonperforming Loans	$	1,309,944		1,542,704	1,555,776	1,519,049	1,472,242	(11.0)%
Impaired Loans Held for Sale (1)		50,208		78,077	36,816	40,932	34,938	43.7
Other Real Estate		212,362		222,155	238,807	187,494	210,968	0.7
Nonperforming Assets		1,572,514		1,842,937	1,831,399	1,747,475	1,718,148	(8.5)
Allowance for Loan Losses		834,522		968,697	943,725	918,468	918,723	(9.2)
Net Charge-Offs - Quarter		433,079		315,976	361,857	496,777	355,224	21.9
Net Charge-Offs - YTD		749,055		315,976	1,460,172	1,098,315	601,538	24.5
Net Charge-Offs / Average Loans - Quarter (2)		7.21	%	5.05	5.58	7.33	5.09
Net Charge-Offs / Average Loans - YTD (2)		6.11		5.05	5.37	5.30	4.31
Nonperforming Loans / Loans		5.6		6.3	6.1	5.8	5.3
Nonperforming Assets / Loans, Other Loans Held for Sale & ORE		6.7		7.5	7.1	6.6	6.2
Allowance / Loans		3.58		3.97	3.72	3.49	3.33
Allowance / Nonperforming Loans		63.71		62.79	60.66	60.46	62.40
Past Due Loans over 90 days and Still Accruing	$	21,430		35,491	19,938	43,816	31,018	(30.9) %
As a Percentage of Loans Outstanding		0.09	%	0.15	0.08	0.17	0.11
Total Past Dues Loans and Still Accruing	$	246,635		294,753	262,446	356,456	331,731	(25.7)
As a Percentage of Loans Outstanding		1.06	%	1.21	1.03	1.35	1.20
Restructured loans (accruing)	$	350,145		261,160	213,552	192,559	18,025	nm
(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)
	June 30, 2010			December 31, 2009	June 30, 2009
Tier 1 Capital	$	3,289,473		2,721,287	2,862,225
Total Risk-Based Capital		4,165,430		3,637,712	3,836,405
Tier 1 Capital Ratio		13.33	%	10.16	9.53
Total Risk-Based Capital Ratio		16.87		13.58	12.77
Leverage Ratio		10.12		8.12	8.25
Common Equity as a Percentage of Total Assets (2)		7.69		5.86	6.10
Tangible Common Equity as a Percentage of Tangible Assets (3)		7.58		5.74	5.94
Tangible Common Equity as a Percentage of Risk Weighted Assets (3)		9.94		7.03	6.78
Book Value Per Common Share (4)		3.17		3.93	6.34
Tangible Book Value Per Common Share (3) (5)		2.70		3.84	6.16

(1) Current quarter regulatory capital information is preliminary.

(2) Common equity consists of Total Shareholders’ Equity less Cumulative 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 Shareholders’ Equity less Cumulative Perpetual Preferred Stock divided by total common shares outstanding.

(5) Equity and common shares exclude impact of tangible equity units (tMEDS).