Synovus Reports 15.7% Increase in Net Income and 13.0% Increase In Ear

Synovus Reports 15.7% Increase in Net Income and 13.0% Increase In Earnings per Share for Fourth Quarter 2004 Earnings per Share Increased 10.4% for the Full Year 2004

    Business Editors

    COLUMBUS, Ga.--(BUSINESS WIRE)--Jan. 19, 2005--

Financial Services Segment Reports Increases in Net Income of 18.7% for Fourth Quarter and 14.7% for Full Year 2004
    Synovus'(NYSE:SNV) fourth quarter net income grew 15.7% over the fourth quarter 2003 to $118.7 million, which represented earnings per share growth of 13.0% to $.38 per share, Synovus' Chief Executive Officer James H. Blanchard announced today. For the full year, earnings per share increased 10.4% over 2003.
    "Throughout 2004, the Synovus Financial Services segment provided the key drivers for growth in net income," said Blanchard. "Excellent credit quality, strong loan growth and fundamental margin expansion led the earnings momentum in the fourth quarter. Additionally, TSYS gained momentum in the quarter with the successful conversion of the Bank One portfolio and an excellent Christmas shopping season."
    Return on assets was 1.91% and return on equity was 17.92% for the fourth quarter 2004, compared to 1.94% and 18.37%, respectively, in the same period last year. For the full year, return on assets was 1.88% and return on equity was 17.63% compared to 1.91% and 17.95%, respectively, in 2003. Shareholders' equity at December 31, 2004, was $2.64 billion, which represented a very strong 10.55% of quarter-end assets. Total assets ended the quarter at $25.0 billion, an increase of 15.7% from the same period last year.
    Asset quality remained excellent. The net charge-off ratio was 0.27% compared to 0.43% for the fourth quarter of last year. For the year, the net charge-off ratio is 0.23% compared to 0.36% in 2003. The ratio of nonperforming assets to loans and other real estate decreased to 0.52% from 0.58% last year. The allowance for loan losses was 1.36% of loans, which provides coverage of 330% of nonperforming loans. The provision for loan losses covered net charge-offs by 1.63x for the quarter, and 1.83x for the full year.
    Net interest income grew 13.5% over the same quarter last year, as total loans grew 18.3% (15.4% excluding acquisitions and divestitures) and Synovus began to realize the positive impact of increasing interest rates. During the fourth quarter, Synovus changed its accounting methodology for loan origination fees and costs on a prospective basis. The change was not material to Synovus' financial position, results of operations, or cash flows. The new methodology did however result in a decrease in loan fee income (a component of net interest income) with a corresponding decrease in personnel expense. For the fourth quarter, loan fee income decreased by $10.5 million compared to the third quarter. The decrease was primarily due to the change in methodology. Additionally, personnel expense for the fourth quarter reflects a reduction (deferral) of $9.2 million in loan origination costs also as a result of the change in methodology.
    The net interest margin before fees was 3.98% for the quarter and 3.92% for the year, up from 3.92% and 3.90%, respectively, for the same periods in 2003. On a sequential quarter basis, the net interest margin before fees increased by 8 basis points, reflecting the positive benefit of the recent interest rate increases. The net interest margin after fees for the fourth quarter was 4.13% compared to 4.25% for the previous quarter. This decrease was primarily due to the aforementioned change in accounting methodology.
    Net income for the Synovus Financial Services segment increased 18.7% over the fourth quarter of last year and 14.7% for the full year. Return on assets for this segment was 1.41% and return on equity was 17.09% for the quarter, compared to 1.39% and 17.07%, respectively, in the same period last year. Financial Services' non-interest income was up 6.4% in the quarter as compared to the same period last year. Credit card fees increased by 21% in the fourth quarter compared to the same period last year. Fiduciary and asset management fees - which include trust, financial planning and asset management fees - were up 8.9%, compared to the fourth quarter last year. Financial Services' non-interest expense was up 7.0% compared to the fourth quarter last year and down 1.9% compared to the third quarter of 2004. Financial Services' efficiency ratio was 50.5% for the quarter and 52.1% for the year, compared to 52.7% and 53.3%, respectively, in 2003.
    TSYS reported net income of $43.0 million for the fourth quarter 2004 compared to $39.4 million last year. Diluted earnings per share for the quarter increased by 9.2% to $0.22, up from $0.20 last year. During the quarter, TSYS successfully completed the conversion of the Bank One portfolio, extended agreements with MBNA and First Tennessee, and was awarded a patent for TSYS ProphIT, its proprietary front-end workflow management system. TSYS announced yesterday that it was acquiring full ownership of Vital Processing Services. With the strength of TSYS' core services, over 47 million accounts remaining in the conversion pipeline, and the addition of Vital Processing Services, TSYS expects its net income growth to be in the 19 - 22% range for 2005.
    Blanchard concluded, "Synovus exceeded its expectations for 2004 with the Financial Services segment maintaining excellent credit quality, improving margins, continuing strong loan growth, fee income growth, and continuing expense control. Additionally, TSYS met its expectations and realized many successes that will build foundations for future growth. As we look into 2005, one of the most exciting initiatives is our retail banking enhancement strategy. Through this new focus, we look to enhance the performance of our almost 300 branches or "stores" to deepen our customer relationships with our needs-based approach, complimented by modernized technology and merchandising, that will lead to more deposits and retail product sales. For 2005, we expect the economy will continue to expand, that short-term interest rates will continue to increase at least modestly towards more normal levels, the credit environment will remain favorable and that TSYS will perform within its range of guidance. Synovus will focus on growing deposits, managing loan growth, quality and mix, maintaining the margin, expanding fee income and continuing to refine our processes to improve efficiencies. Based on these assumptions, along with our excellent team members and strong balance sheet, we expect 12 - 15% earnings per share growth which equates to a range of $1.58 to $1.62 for 2005. This expectation includes the impact of stock option expense beginning in July 2005 and expense for new restricted stock awards beginning in the first quarter of 2005. The additional cost for both options and restricted stock awards represents approximately $0.03 per share for the full year 2005."
    Synovus will host an earnings highlights conference call at 4:30 p.m. ET, on January 19, 2005. The conference call will be available in the Investor Relations section of www.synovus.com under the "Conference Calls and Webcasts" tab. Please log on 5-10 minutes ahead of the call time.
    Synovus (NYSE:SNV) is a diversified financial services holding company with over $25 billion in assets based in Columbus, Georgia. Synovus provides integrated financial services including banking, financial management, insurance, mortgage and leasing services through 40 banks and other Synovus offices in Georgia, Alabama, South Carolina, Florida and Tennessee; and electronic payment processing through an 81-percent stake in TSYS (NYSE:TSS), the world's largest third-party processor of international payments. Synovus has been named one of "The 100 Best Companies To Work For" in America by FORTUNE magazine, and has been recognized in its Hall of Fame for consecutive appearances on the list since its inception in 1998. In 2004, Synovus was also named as one of "America's Most Admired Companies". See Synovus on the Web at www.synovus.com.
    This press release contains statements that constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements regarding TSYS' expected growth in net income for 2005 and Synovus' expected growth in earnings per share for 2005, and the assumptions underlying such statements, including, with respect to Synovus' expected increase in earnings per share for 2005, the economy will continue to expand; short-term interest rates will continue to increase at least modestly toward normal levels; the credit environment will remain favorable; and TSYS will perform within its range of guidance. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. A number of important factors could cause actual results to differ materially from those contemplated by the forward-looking statements in this press release. Many of these factors are beyond Synovus' ability to control or predict. These factors include, but are not limited to, competitive pressures arising from aggressive competition from other financial service providers; factors that affect the delinquency rate on Synovus' loans and the rate at which Synovus' loans are charged off; changes in the cost and availability of funding due to changes in the deposit market and credit market, or the way in which Synovus is perceived in such markets; inflation, interest rate, market and monetary fluctuations; TSYS' net income growth is lower that anticipated; the strength of the United States economy in general and the strength of the local economies in which Synovus conducts operations may be different than expected; the timely development of competitive new products and services and the acceptance of such by customers; Synovus' inability to control expenses; a deterioration in credit quality or a reduced demand for credit; the costs and effects of litigation, investigations, or similar matters, or adverse facts and developments related thereto; the impact of changes in accounting principles; the effects of changes in government policy and regulations, including restrictions and/or limitations arising from banking laws, regulations and examinations; and the impact on Synovus' business, as well as on the risks set forth above, of various domestic or international military or terrorist activities or conflicts. Additional factors that could cause actual results to differ materially from those contemplated in this press release can be found in Synovus' filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations.

Synovus

INCOME STATEMENT Twelve Months Ended (In thousands, except per share data) December 31, ------------------------------- 2004 2003 Change ---------- ---------- ---------

Interest Income (Taxable Equivalent) $1,165,980 1,068,882 9.1 % Interest Expense 298,342 298,429 nm

---------- ---------- ---------

Net Interest Income (Taxable Equivalent) 867,638 770,453 12.6 Tax Equivalent Adjustment 6,960 7,390 (5.8)

---------- ---------- ---------

Net Interest Income 860,678 763,063 12.8 Provision for Loan Losses 75,319 71,777 4.9

---------- ---------- ---------

Net Interest Income After Provision 785,359 691,286 13.6

---------- ---------- ---------

Non-Interest Income: Electronic Payment Processing Services 781,437 701,022 11.5 Other Transaction Processing Services Revenue 170,905 120,485 41.8 Service Charges on Deposits 121,103 107,404 12.8 Fiduciary and Asset Management Fees 43,001 39,377 9.2 Brokerage and Investment Banking Revenue 21,748 20,461 6.3 Mortgage Banking Income 26,300 58,633 (55.1) Credit Card Fees 30,025 26,044 15.3 Securities Gains (Losses) 75 2,491 nm Other Fee Income 29,227 23,682 23.4 Other Non-Interest Income 67,654 44,566 51.8

---------- ---------- ---------

Non-Interest Income before Reimbursable Items 1,291,475 1,144,165 12.9 Reimbursable Items 229,538 225,165 1.9

---------- ---------- ---------

Total Non-Interest Income 1,521,013 1,369,330 11.1

---------- ---------- ---------

Non-Interest Expense: Personnel Expense 731,579 672,248 8.8 Occupancy & Equipment Expense 321,689 281,688 14.2 Other Non-Interest Expense 305,560 243,044 25.7

---------- ---------- ---------

Non-Interest Expense before Reimbursable Items 1,358,828 1,196,980 13.5 Reimbursable Items 229,538 225,165 1.9

---------- ---------- ---------

Total Non-Interest Expense 1,588,366 1,422,145 11.7

---------- ---------- ---------

Minority Interest in Consolidated Subsidiaries 28,724 26,973 6.5 Income Before Taxes 689,282 611,498 12.7 Income Tax Expense 252,249 222,573 13.3

---------- ---------- ---------

Net Income $ 437,033 388,925 12.4

========== ========== =========

Basic Earnings Per Share 1.42 1.29 10.4 Diluted Earnings Per Share 1.41 1.28 10.4 Dividends Declared Per Share 0.69 0.66 5.0

Return on Assets 1.88 % 1.91 (3)bp Return on Equity 17.63 17.95 (32) Average Shares Outstanding - Basic 307,262 302,010 1.7 % Average Shares Outstanding - Diluted 310,330 304,928 1.8

bp - change is measured as difference in basis points. nm - not meaningful

Synovus

INCOME STATEMENT (In thousands, except per share data) 2004 ------------------------------------ Fourth Third Second First Quarter Quarter Quarter Quarter ------------------------------------

Interest Income (Taxable Equivalent) $314,019 301,457 279,013 271,491 Interest Expense 88,281 76,313 66,804 66,944 -------- -------- -------- --------

Net Interest Income (Taxable Equivalent) 225,738 225,144 212,209 204,547 Tax Equivalent Adjustment 1,703 1,710 1,747 1,800 -------- -------- -------- --------

Net Interest Income 224,035 223,434 210,462 202,747 Provision for Loan Losses 20,855 21,192 17,548 15,724 -------- -------- -------- --------

Net Interest Income After Provision 203,180 202,242 192,914 187,023 -------- -------- -------- --------

Non-Interest Income: Electronic Payment Processing Services 203,540 204,340 190,607 182,950 Other Transaction Processing Services Revenue 45,224 43,006 41,827 40,848 Service Charges on Deposits 30,226 31,257 31,188 28,432 Fiduciary and Asset Management Fees 11,326 10,622 10,485 10,568 Brokerage and Investment Banking Revenue 5,361 5,012 5,616 5,759 Mortgage Banking Income 6,773 6,861 5,772 6,894 Credit Card Fees 8,379 8,097 7,509 6,040 Securities Gains (Losses) 164 (24) - (65) Other Fee Income 7,654 7,451 7,202 6,920 Other Non-Interest Income 12,653 11,361 15,341 28,299 -------- -------- -------- --------

Non-Interest Income before Reimbursable Items 331,300 327,983 315,547 316,645 Reimbursable Items 57,039 56,309 55,745 60,445

-------- -------- -------- --------

Total Non-Interest Income 388,339 384,292 371,292 377,090 -------- -------- -------- --------

Non-Interest Expense: Personnel Expense 175,369 194,624 174,955 186,631 Occupancy & Equipment Expense 77,039 80,073 86,187 78,390 Other Non-Interest Expense 88,639 74,699 74,365 67,857 -------- -------- -------- --------

Non-Interest Expense before Reimbursable Items 341,047 349,396 335,507 332,878 Reimbursable Items 57,039 56,309 55,745 60,445 -------- -------- -------- --------

Total Non-Interest Expense 398,086 405,705 391,252 393,323 -------- -------- -------- --------

Minority Interest in Consolidated Subsidiaries 8,143 7,480 6,852 6,249 Income Before Taxes 185,290 173,349 166,102 164,541 Income Tax Expense 66,568 64,341 60,961 60,379 -------- -------- -------- --------

Net Income $118,722 109,008 105,141 104,162 ======== ======== ======== ========

Basic Earnings Per Share 0.38 0.35 0.34 0.34 Diluted Earnings Per Share 0.38 0.35 0.34 0.34 Dividends Declared Per Share 0.17 0.17 0.17 0.17

Return on Assets 1.91 % 1.82 % 1.86 % 1.91 % Return on Equity 17.92 17.00 17.60 18.00 Average Shares Outstanding - Basic 309,740 309,448 306,180 303,644 Average Shares Outstanding - Diluted 313,268 312,343 308,857 306,812

bp - change is measured as difference in basis points. nm - not meaningful

Synovus

INCOME STATEMENT (In thousands, except per share data) 2003 4th Quarter

--------- --------------

Fourth '04 vs. '03 Quarter Change

--------- --------------

Interest Income (Taxable Equivalent) 266,581 17.8 % Interest Expense 67,314 31.1

--------- ------------

Net Interest Income (Taxable Equivalent) 199,267 13.3 Tax Equivalent Adjustment 1,836 (7.2)

--------- ------------

Net Interest Income 197,431 13.5 Provision for Loan Losses 19,800 5.3

--------- ------------

Net Interest Income After Provision 177,631 14.4

--------- ------------

Non-Interest Income: Electronic Payment Processing Services 182,806 11.3 Other Transaction Processing Services Revenue 37,060 22.0 Service Charges on Deposits 29,527 2.4 Fiduciary and Asset Management Fees 10,462 8.3 Brokerage and Investment Banking Revenue 5,353 0.1 Mortgage Banking Income 6,642 2.0 Credit Card Fees 6,927 21.0 Securities Gains (Losses) 1,155 nm Other Fee Income 6,347 20.6 Other Non-Interest Income 12,998 (2.7)

--------- ------------

Non-Interest Income before Reimbursable Items 299,277 10.7 Reimbursable Items 56,313 1.3

--------- ------------

Total Non-Interest Income 355,590 9.2

--------- ------------

Non-Interest Expense: Personnel Expense 167,157 4.9 Occupancy & Equipment Expense 72,816 5.8 Other Non-Interest Expense 68,504 29.4

--------- ------------

Non-Interest Expense before Reimbursable Items 308,477 10.6 Reimbursable Items 56,313 1.3

--------- ------------

Total Non-Interest Expense 364,790 9.1

--------- ------------

Minority Interest in Consolidated Subsidiaries 7,519 8.3 Income Before Taxes 160,912 15.1 Income Tax Expense 58,273 14.2

--------- ------------

Net Income 102,639 15.7

========= ============

Basic Earnings Per Share 0.34 12.7 Diluted Earnings Per Share 0.34 13.0 Dividends Declared Per Share 0.17 5.0

Return on Assets 1.94 % (3)bp Return on Equity 18.37 (45) Average Shares Outstanding - Basic 301,842 2.6 % Average Shares Outstanding - Diluted 306,160 2.3

bp - change is measured as difference in basis points. nm - not meaningful

Synovus Financial Services Segment

INCOME STATEMENT Twelve Months Ended (In thousands) December 31,

-----------------------------

2004 2003 Change

-----------------------------

Interest Income (Taxable Equivalent) $1,165,962 1,068,895 9.1 % Interest Expense 299,489 299,066 0.1

---------- ----------------

Net Interest Income (Taxable Equivalent) 866,473 769,829 12.6 Tax Equivalent Adjustment 6,941 7,375 (5.9)

---------- ----------------

Net Interest Income 859,532 762,454 12.7 Provision for Loan Losses 75,319 71,777 4.9

---------- --------- ------

Net Interest Income After Provision 784,213 690,677 13.5

---------- --------- ------

Non-Interest Income: Service Charges on Deposits 121,103 107,404 12.8 Fiduciary and Asset Management Fees 43,757 39,922 9.6 Brokerage and Investment Banking Revenue 21,748 20,461 6.3 Mortgage Banking Income 26,300 58,633 (55.1) Credit Card Fees 30,025 26,044 15.3 Securities Gains (Losses) 75 2,491 nm Other Fee Income 29,227 23,682 23.4 Other Non-Interest Income 55,206 32,387 70.5

---------- --------- ------

Total Non-Interest Income 327,441 311,024 5.3

---------- --------- ------

Non-Interest Expense: Personnel Expense 364,514 340,219 7.1 Occupancy & Equipment Expense 82,156 75,841 8.3 Other Non-Interest Expense 175,005 159,347 9.8

---------- --------- ------

Total Non-Interest Expense 621,675 575,407 8.0

---------- --------- ------

Income Before Taxes 489,979 426,294 14.9 Income Tax Expense 175,038 151,708 15.4

---------- --------- ------

Net Income $ 314,941 274,586 14.7

========== ========= ======

Return on Assets 1.41 % 1.40 1 bp Return on Equity 17.15 16.82 33

bp - change is measured as difference in basis points. nm - not meaningful

Synovus Financial Services Segment

INCOME STATEMENT (In thousands) 2004

------------------------------------

Fourth Third Second First Quarter Quarter Quarter Quarter

------------------------------------

Interest Income (Taxable Equivalent) $314,008 301,458 279,010 271,486 Interest Expense 88,933 76,502 66,964 67,090

-------- -------- -------- --------

Net Interest Income (Taxable Equivalent) 225,075 224,956 212,046 204,396 Tax Equivalent Adjustment 1,691 1,710 1,744 1,796

-------- -------- -------- --------

Net Interest Income 223,384 223,246 210,302 202,600 Provision for Loan Losses 20,855 21,192 17,548 15,724

-------- -------- -------- --------

Net Interest Income After Provision 202,529 202,054 192,754 186,876

-------- -------- -------- --------

Non-Interest Income: Service Charges on Deposits 30,226 31,257 31,188 28,432 Fiduciary and Asset Management Fees 11,538 10,834 10,675 10,710 Brokerage and Investment Banking Revenue 5,361 5,012 5,616 5,759 Mortgage Banking Income 6,773 6,861 5,772 6,894 Credit Card Fees 8,379 8,097 7,509 6,040 Securities Gains (Losses) 164 (24) - (65) Other Fee Income 7,654 7,451 7,202 6,920 Other Non-Interest Income 10,826 7,211 11,409 25,760

-------- -------- -------- --------

Total Non-Interest Income 80,921 76,699 79,371 90,450

-------- -------- -------- --------

Non-Interest Expense: Personnel Expense 82,601 93,631 91,283 96,999 Occupancy & Equipment Expense 21,305 21,156 20,004 19,691 Other Non-Interest Expense 50,677 42,764 42,310 39,254

-------- -------- -------- --------

Total Non-Interest Expense 154,583 157,551 153,597 155,944

-------- -------- -------- --------

Income Before Taxes 128,867 121,202 118,528 121,382 Income Tax Expense 44,992 43,935 42,486 43,625

-------- -------- -------- --------

Net Income $ 83,875 77,267 76,042 77,757

======== ======== ======== ========

Return on Assets 1.41 % 1.35 % 1.41 % 1.49 % Return on Equity 17.09 16.20 17.26 18.18

bp - change is measured as difference in basis points. nm - not meaningful

Synovus Financial Services Segment

INCOME STATEMENT (In thousands) 4th 2003 Quarter -------- ----------- Fourth '04 vs. '03 Quarter Change

-------- -----------

Interest Income (Taxable Equivalent) 266,577 17.8 % Interest Expense 67,340 32.1

-------- -----------

Net Interest Income (Taxable Equivalent) 199,237 13.0 Tax Equivalent Adjustment 1,831 (7.6)

-------- -----------

Net Interest Income 197,406 13.2 Provision for Loan Losses 19,800 5.3

-------- -----------

Net Interest Income After Provision 177,606 14.0

-------- -----------

Non-Interest Income: Service Charges on Deposits 29,527 2.4 Fiduciary and Asset Management Fees 10,597 8.9 Brokerage and Investment Banking Revenue 5,353 0.1 Mortgage Banking Income 6,642 2.0 Credit Card Fees 6,927 21.0 Securities Gains (Losses) 1,155 nm Other Fee Income 6,347 20.6 Other Non-Interest Income 9,497 14.0

-------- -----------

Total Non-Interest Income 76,045 6.4

-------- -----------

Non-Interest Expense: Personnel Expense 80,346 2.8 Occupancy & Equipment Expense 20,041 6.3 Other Non-Interest Expense 44,065 15.0

-------- -----------

Total Non-Interest Expense 144,452 7.0

-------- -----------

Income Before Taxes 109,199 18.0 Income Tax Expense 38,536 16.8

-------- -----------

Net Income 70,663 18.7

======== ===========

Return on Assets 1.39% 2 bp Return on Equity 17.07 2

bp - change is measured as difference in basis points. nm - not meaningful

Synovus

--------- ----------- -----------

BALANCE SHEET December September December 31, 2004 30, 2004 31, 2003

--------- ----------- -----------

(In thousands, except share data)

ASSETS Cash and due from banks $ 683,035 757,380 696,030 Interest earning deposits with banks 4,153 4,140 4,423 Federal funds sold and securities purchased under resale agreements 135,471 122,130 172,922 Mortgage loans held for sale 120,186 126,099 133,306 Investment securities available for sale 2,695,593 2,621,120 2,529,257

Loans, net of unearned income 19,480,396 18,871,056 16,464,914 Allowance for loan losses (265,745) (257,647) (226,059)

--------- ----------- -----------

Loans, net 19,214,651 18,613,409 16,238,855

--------- ----------- -----------

Premises and equipment, net 638,407 629,738 578,710 Contract acquisition costs and computer software, net 375,044 364,382 383,562 Goodwill, net 416,283 419,323 248,868 Other intangible assets, net 41,628 43,819 33,970 Costs in excess of billings on uncompleted contracts - 7,272 - Other assets 699,698 680,681 612,726

--------- ----------- ----------- Total assets $25,024,148 24,389,493 21,632,629

========= =========== ===========

LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits: Non-interest bearing $ 3,337,908 3,202,214 2,833,567 Interest bearing 15,239,560 14,572,170 13,108,042

--------- ----------- ------------

Total deposits 18,577,468 17,774,384 15,941,609 Federal funds purchased and securities sold under repurchase agreements 1,208,080 1,671,239 1,354,887 Long-term debt 1,879,583 1,740,103 1,575,777 Billings in excess of costs on uncompleted contracts - - 17,573 Other liabilities 550,444 468,141 355,906

--------- ----------- -----------

Total liabilities 22,215,575 21,653,867 19,245,752

--------- ----------- -----------

Minority interest in consolidated subsidiaries 167,284 158,912 141,838

Shareholders' equity: Common stock, par value $1.00 a share (1) 315,636 315,200 307,748 Surplus 628,396 619,734 442,931 Treasury stock (2) (113,944) (113,944) (113,940) Unearned compensation (106) (146) (266) Accumulated other comprehensive income 8,902 18,513 29,509 Retained earnings 1,802,405 1,737,357 1,579,057

--------- ----------- ----------- Total shareholders' equity 2,641,289 2,576,714 2,245,039

--------- ----------- -----------

Total liabilities and shareholders' equity $25,024,148 24,389,493 21,632,629

========= =========== ===========

(1) Common shares outstanding: 309,974,509; 309,538,462; and 302,090,128 at December 31, 2004, September 30, 2004, and December 31, 2003, respectively. (2) Treasury shares: 5,661,538 at December 31, 2004, 5,661,623 at September 30, 2004, and 5,658,005 at December 31, 2003.

Synovus

AVERAGE BALANCES AND YIELDS/RATES (Dollars in thousands)

2004

---------------------------------------------- Fourth Third Second First Quarter Quarter Quarter Quarter

---------------------------------------------- Interest Earning Assets

----------------------- Taxable Investment Securities $ 2,408,960 2,382,319 2,355,328 2,319,280 Yield 3.69 % 3.72 3.71 3.86

Tax-Exempt Investment Securities $ 229,190 233,271 230,885 229,905 Yield 6.99 % 6.92 7.14 7.14

Commercial Loans $16,029,042 15,385,995 14,567,795 13,991,230 Yield 5.85 % 5.79 5.66 5.67

Consumer Loans $ 948,273 958,540 967,450 1,003,595 Yield 7.32 % 8.03 8.00 8.03

Mortgage Loans $ 954,078 936,240 856,688 823,625 Yield 6.04 % 5.89 5.92 6.01

Credit Card Loans $ 260,523 248,755 245,534 241,415 Yield 8.84 % 8.93 8.53 9.28

Home Equity Loans $ 973,604 890,867 790,238 719,915 Yield 5.08 % 4.61 4.45 4.50

Allowance for Loan Losses $ (262,711) (252,370) (241,082) (231,822) ---------------------------------------------

Loans, Net $18,902,809 18,168,027 17,186,623 16,547,958 Yield 6.01 % 5.97 5.87 5.91

Mortgage Loans Held for Sale $ 103,594 112,502 148,471 105,557 Yield 5.75 % 6.15 5.27 5.33

Federal Funds Sold $ 102,852 162,580 158,373 171,284 Yield 2.06 % 1.23 1.04 1.10

Time Deposits with Banks $ 4,144 4,136 4,137 4,372 Yield 1.32 % 0.80 0.45 0.46

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Total Interest Earning Assets $21,751,549 21,062,836 20,083,817 19,378,354 Yield 5.75 % 5.69 5.58 5.63

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Interest Bearing Liabilities ---------------------------- Time Deposits Over $100,000 $ 4,396,233 4,135,970 3,789,423 3,628,357 Rate 2.57 % 2.35 2.21 2.29

Time Deposits Under $100,000 $ 2,194,194 2,209,883 2,225,224 2,266,593 Rate 2.29 % 2.18 2.21 2.28

Interest Bearing Demand Deposits $ 2,848,978 2,716,488 2,773,020 2,709,479 Rate 0.72 % 0.60 0.54 0.56

Money Market Accounts $ 4,765,591 4,778,276 4,300,823 4,073,084 Rate 1.51 % 1.23 1.04 1.03

Savings Deposits $ 547,026 555,969 551,037 540,853 Rate 0.21 % 0.17 0.17 0.18

Federal Funds Purchased and Other Short-Term Borrowings $ 1,488,555 1,422,598 1,513,306 1,495,333 Rate 1.83 % 1.40 1.00 0.98

Long-Term Debt $ 1,821,889 1,747,788 1,667,441 1,635,648 Rate 3.63 % 3.51 3.53 3.71

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Total Interest Bearing Liabilities $18,062,466 17,566,972 16,820,274 16,349,345 Rate 1.94 % 1.72 1.59 1.64

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Non-Interest Bearing Demand Deposits $ 3,277,155 3,137,357 3,006,493 2,769,367 Shareholders' Equity $ 2,635,188 2,550,346 2,402,271 2,327,319 Total Assets $24,678,316 23,778,250 22,705,467 21,913,168

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Spread 3.81 % 3.97 3.99 3.99 Net Interest Margin, before fees 3.98 % 3.90 3.89 3.91 Net Interest Margin, after fees 4.13 % 4.25 4.24 4.24

Synovus

AVERAGE BALANCES AND YIELDS/RATES (Dollars in thousands)

2003 Twelve Months Ended

------------- ----------------------- Fourth December 31, Quarter 2004 2003

------------- ----------------------- Interest Earning Assets

------------------------------- Taxable Investment Securities 2,200,668 $ 2,366,631 2,065,924 Yield 3.74 3.74 % 4.05

Tax-Exempt Investment Securities 233,425 $ 230,815 235,401 Yield 7.11 7.05 % 7.19

Commercial Loans 13,346,751 $14,997,417 12,894,815 Yield 5.73 5.74 % 5.92

Consumer Loans 1,037,283 $ 969,377 1,082,449 Yield 8.08 7.85 % 8.30

Mortgage Loans 819,412 $ 892,945 811,519 Yield 6.10 5.96 % 6.31

Credit Card Loans 239,433 $ 249,087 232,961 Yield 8.69 8.89 % 9.02

Home Equity Loans 674,264 $ 844,140 604,475 Yield 4.52 4.69 % 4.66

Allowance for Loan Losses (225,021) $ (247,054) (220,004) ----------- -----------------------

Loans, Net 15,892,122 $17,705,912 15,406,215 Yield 5.98 5.94 % 6.19

Mortgage Loans Held for Sale 136,133 $ 117,479 254,240 Yield 5.43 5.60 % 5.26

Federal Funds Sold 113,728 $ 148,685 111,893 Yield 1.14 1.29 % 1.38

Time Deposits with Banks 4,426 $ 4,197 4,515 Yield 0.46 0.76 % 0.55

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Total Interest Earning Assets 18,580,502 $20,573,719 18,078,187 Yield 5.70 5.67 % 5.91

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Interest Bearing Liabilities

------------------------------- Time Deposits Over $100,000 3,446,050 $ 3,989,018 3,448,900 Rate 2.46 2.36 % 2.73

Time Deposits Under $100,000 2,311,870 $ 2,223,854 2,399,371 Rate 2.35 2.24 % 2.63

Interest Bearing Demand Deposits 2,623,125 $ 2,762,104 2,515,162 Rate 0.58 0.61 % 0.71

Money Market Accounts 3,970,084 $ 4,481,042 3,695,600 Rate 1.01 1.21 % 1.11

Savings Deposits 519,175 $ 548,736 502,245 Rate 0.16 0.18 % 0.25

Federal Funds Purchased and Other Short-Term Borrowings 1,176,709 $ 1,479,815 1,101,216 Rate 0.95 1.30 % 1.07

Long-Term Debt 1,576,346 $ 1,718,556 1,639,487 Rate 3.79 3.59 % 4.21

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Total Interest Bearing Liabilities 15,623,360 $17,203,125 15,301,981 Rate 1.71 1.73 % 1.95

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Non-Interest Bearing Demand Deposits 2,715,015 $ 3,048,465 2,501,539 Shareholders' Equity 2,216,818 $ 2,479,404 2,166,777 Total Assets 21,028,492 $23,274,044 20,412,853

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Spread 3.99 3.94 % 3.96 Net Interest Margin, before fees 3.92 3.92 % 3.90 Net Interest Margin, after fees 4.26 4.22 % 4.26

Synovus

LOANS OUTSTANDING AND NONPERFORMING LOANS COMPOSITION (Dollars in thousands)

December 31, 2004 --------------------------------------------------- Loans as a Total Nonperforming % of Total Nonperforming Loans as a % Loans Loans of Total Outstanding Nonperforming Loan Type Total Loans Loans ------------------ --------------------------------------------------- Commercial Real Estate Multi-Family $ 536,765 2.8 % $ 802 1.0 % Hotels 820,391 4.2 2,881 3.6 Office Buildings 770,260 4.0 6 0.0 Shopping Centers 592,919 3.0 199 0.2 Commercial Development 678,451 3.5 43 0.1 Other Investment Property 275,031 1.4 90 0.1

----------- ----------- ------------- -------------

Total Investment Properties 3,673,817 18.9 4,021 5.0

----------- ----------- ------------- -------------

1-4 Family Construction 1,208,618 6.2 859 1.1 1-4 Family Perm / Mini-Perm 984,690 5.1 6,601 8.2 Residential Development 1,091,832 5.6 209 0.2

----------- ----------- ------------- -------------

Total 1-4 Family Properties 3,285,140 16.9 7,669 9.5

----------- ----------- ------------- -------------

Land Acquisition 931,269 4.8 126 0.2

----------- ----------- ------------- -------------

Total Investment- Related Real Estate 7,890,226 40.5 11,816 14.7

----------- ----------- ------------- -------------

Owner-Occupied 2,264,920 11.6 7,077 8.8 Other Property 1,134,436 5.8 7,871 9.8

----------- ----------- ------------- -------------

Total Commercial Real Estate 11,289,582 58.0 26,764 33.3

Commercial & Industrial 5,050,713 25.9 46,811 58.1

Consumer 3,182,052 16.3 6,881 8.6

Unearned Income (41,951) (0.2) - -

----------- ----------- ------------- -------------

Total $19,480,396 100.0 % $ 80,456 100.0 % =========== =========== ============= =============

Synovus

CREDIT QUALITY DATA (Dollars in thousands) 2004 ------------------------------------

Fourth Third Second First Quarter Quarter Quarter Quarter

------------------------------------

Nonperforming Loans $ 80,456 79,776 67,489 70,007 Other Real Estate 21,492 25,424 26,972 26,061 Nonperforming Assets 101,948 105,200 94,461 96,068 Allowance for Loan Losses 265,745 257,647 248,585 236,056

Net Charge-Offs - Quarter 12,757 12,130 9,589 6,773 Net Charge-Offs - YTD 41,249 28,492 16,362 6,773 Net Charge-Offs / Average Loans - Quarter 0.27 0.26 0.22 0.16 Net Charge-Offs / Average Loans - YTD 0.23 0.22 0.19 0.16

Nonperforming Loans / Loans & ORE 0.41 0.42 0.37 0.41 Nonperforming Assets / Loans & ORE 0.52 0.56 0.52 0.56 Allowance / Loans 1.36 1.37 1.38 1.39

Allowance / Nonperforming Loans 330.30 322.96 368.34 337.19 Allowance / Nonperforming Assets 260.67 244.91 263.16 245.72

Past Due Loans over 90 days 18,138 23,178 27,453 23,295 As a Percentage of Loans Outstanding 0.09 0.12 0.15 0.14

Total Past Dues 84,458 118,390 109,385 129,844 As a Percentage of Loans Outstanding 0.43 0.63 0.61 0.76

Synovus

CREDIT QUALITY DATA (Dollars in thousands) 4th 2003 Quarter

---------- -----------

Fourth '04 vs. '03 Quarter Change

---------- -----------

Nonperforming Loans 67,442 19.3 % Other Real Estate 28,422 (24.4) Nonperforming Assets 95,864 6.3 Allowance for Loan Losses 226,059 17.6

Net Charge-Offs - Quarter 17,202 (25.8) Net Charge-Offs - YTD 56,093 (26.5) Net Charge-Offs / Average Loans - Quarter 0.43 Net Charge-Offs / Average Loans - YTD 0.36

Nonperforming Loans / Loans & ORE 0.41 Nonperforming Assets / Loans & ORE 0.58 Allowance / Loans 1.37

Allowance / Nonperforming Loans 335.19 Allowance / Nonperforming Assets 235.81

Past Due Loans over 90 days 21,138 As a Percentage of Loans Outstanding 0.13

Total Past Dues 109,672 As a Percentage of Loans Outstanding 0.67

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REGULATORY CAPITAL RATIOS (1) (Dollars in thousands) ---------- ---------- --------- December September December 31, 2004 30, 2004 31, 2003 ---------- ---------- ---------

Tier 1 Capital $2,369,235 2,279,734 2,012,154 Total Risk-Based Capital 2,934,980 2,837,381 2,535,615 Tier 1 Capital Ratio 10.06 % 9.96 10.30 Total Risk-Based Capital Ratio 12.46 % 12.40 12.98 Leverage Ratio 9.78 % 9.77 9.84

(1) December 31, 2004 information is preliminary.

--30--JAH/at*

CONTACT: Synovus Director of Investor Relations Patrick A. Reynolds, 706-649-4973

KEYWORD: ALABAMA TENNESSEE SOUTH CAROLINA GEORGIA FLORIDA INDUSTRY KEYWORD: BANKING EARNINGS CONFERENCE CALLS SOURCE: Synovus

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