Synovus Reports Earnings Per Share of $1.60 for 2007

Synovus reports diluted earnings per share of $1.60 for 2007 compared to $1.90 for 2006. Net income was $526.3 million for the year compared to $616.9 million last year. The 2007 results include $31.0 million (net of income taxes and minority interest) in expenses related to the distribution of Synovus’ ownership interest in TSYS to Synovus’ shareholders in a spin-off transaction and $22.5 million (net of income taxes) of litigation expenses associated with indemnification obligations arising from Synovus’ ownership interest in Visa. Excluding these expenses, diluted earnings per share for 2007 was $1.76. The 2006 results included $33.2 million (net of income taxes and minority interest) for the impact of the Bank of America contract termination fee of $68.9 million, which was partially offset by the acceleration of the amortization of related contract acquisition costs of $6.0 million. Excluding these items, diluted earnings per share for 2006 was $1.80. For the fourth quarter, diluted earnings per share was $0.25 compared to $0.54 for the fourth quarter of 2006. Net income was $81.9 million for the fourth quarter compared to $175.5 million for the same period last year. The fourth quarter of 2007 results include $25.0 million (net of income taxes and minority interest) in expenses related to the distribution of Synovus’ ownership interest in TSYS to Synovus’ shareholders in a spin-off transaction and $15.2 million (net of income taxes) in Visa litigation expenses. Excluding these expenses and the aforementioned 2006 contract termination fee, diluted earnings per share for the fourth quarter of 2007 was $0.37, compared to $0.44 in the same period a year ago. Shareholders’ equity at December 31, 2007, was $3.44 billion, which represented a strong 10.45% of year-end assets. Total assets ended the year at $32.9 billion, an increase of 3.3% over December 31, 2006. The ratio of nonperforming assets to loans and other real estate was 1.67%, compared to 1.16% last quarter and 0.50% at December 31, 2006. The net charge-off ratio for the fourth quarter of 2007 was 0.91% compared to 0.51% last quarter and 0.39% in the fourth quarter of last year. The allowance for loan losses at December 31, 2007 was 1.39% of loans, compared to 1.38% last quarter and 1.28% at December 31, 2006. The provision for loan losses covered net charge-offs by 1.18x for the quarter. Synovus Chairman and Chief Executive Officer Richard E. Anthony said, "2007 was a challenging year for credit. We continued to experience further weakness in our residential construction and residential development portfolios. These loan categories represent 54.1% of nonperforming loans at the end of the year and 41.7% of net charge-offs recognized in 2007. We continue to take actions to aggressively manage these portfolios. The increases in nonperforming residential construction and development loans were in the panhandle of Florida, Atlanta, and Tampa Bay areas. At December 31, 2007, 70% of Synovus’ total nonperforming assets and 81% of total residential construction and development nonperforming loans are in these markets.” Income from continuing operations (which represents the previously reported net income for the Financial Services segment) was $53.1 million for the fourth quarter of 2007 compared to $105.0 million for the fourth quarter last year. Excluding the Visa litigation related expenses, fourth quarter 2007 income from continuing operations was $68.3 million. Net interest income was $286.7 million compared to $288.9 million in the fourth quarter of last year. Total loans grew 7.5% in 2007. On a sequential quarter basis (annualized), commercial and industrial loans grew 8.7% and retail loans grew 13.5% while commercial real estate loans grew 12.5%. Residential construction and development loans declined 1.9%. Total core deposits (excludes brokered time deposits) increased 0.7% over the fourth quarter of 2006. The net interest margin for the quarter was 3.86%, compared to 3.97% last quarter and 4.16% in the fourth quarter of last year. Of the 11 basis point decrease in the net interest margin from the previous quarter, 7 basis points were due to a higher level of interest charge-offs and non-performing assets. Non-interest income was up 1.4% over the fourth quarter last year with increases in brokerage and investment banking revenue of 27.9%, fiduciary and asset management fees – which include trust, financial planning and asset management fees – of 1.5%, and bankcard fees of 10.5%. Discontinued Operations In accordance with the provisions of Statement of Financial Accounting Standards ("SFAS”) No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets,” and SFAS No. 146, "Accounting for Costs Associated with Exit or Disposal Activities,” the current period and historical consolidated results of operations of TSYS, as well as all costs associated with the spin-off of TSYS, are now presented as a component of income from discontinued operations. The following table shows the components of income from discontinued operations for the three and twelve months ended December 31, 2007 and 2006:                 Three Months Ended     Years Ended December 31, December 31, (In thousands) 2007 2006 2007 2006   TSYS net income, net of minority interest $ 53,720 70,571 210,147 201,814 (excluding spin-off related expenses)   Spin-off related expenses, net of income taxes: TSYS, net of minority interest (16,880 ) -- (18,248 ) -- Financial Services (8,123 ) -- (12,729 ) --   Gain on transfer of mutual funds, net of income taxes -- -- 4,200 -- Total income from discontinued operations, net of income taxes and minority interest $ 28,717 70,571 183,370 201,814                       Non-GAAP Financial Measures Presentation of net income and diluted net income per share excluding the expenses associated with the Visa litigation, TSYS spin-off, and Bank of America termination fee are non-GAAP (Generally Accepted Accounting Principles) financial measures. The following tables reconcile net income and diluted net income per share, comparing non-GAAP financial measures to GAAP financial measures:                   Three Months Ended   Year Ended December 31, December 31, (In thousands, except per share data) 2007   2006 % Chg 2007   2006 % Chg   Consolidated: Net income, as reported $ 81,859 175,547 (53.4 %) 526,305 616,917 (14.7 %) Visa litigation expense, net of income taxes 15,144 -- nm 22,478 -- nm Spin-off related expenses, net of income taxes and minority interest 25,003 -- nm 30,977 -- nm Bank of America termination fee, net of accelerated amortization, income taxes, and minority interest   --   (33,200   )   nm   --   (33,200   )   nm Net income, as adjusted $ 122,006 142,347 (14.3 %) 579,760 583,717 (0.7 %)   Diluted net income per share: Net income, as reported $ 0.25 0.54 (53.6 %) 1.60 1.90 (16.1 %) Visa litigation expense, net of income taxes 0.05 -- nm 0.07 -- nm Spin-off related expenses, net of income taxes and minority interest 0.07 -- nm 0.09 -- nm Bank of America termination fee, net of accelerated amortization, income taxes, and minority interest   --   (0.10   )   nm   --   (0.10   )   nm Diluted net income per share, as adjusted $ 0.37 0.44 (14.6 %) 1.76 1.80 (2.4 %)   Notes: nm = not meaningful                                               Three Months Ended     Year Ended   December 31, December 31, (In thousands, except per share data) 2007   2006 % Chg 2007   2006 % Chg     Income from continuing operations, as reported $ 53,142 104,976 (49.4 %) 342,935 415,103 (17.4 %) Visa litigation expense, net of income taxes 15,144 -- nm 22,478 -- nm   Financial Services net income, as adjusted $ 68,286 104,976 (35.0 %) 365,413 415,103 (12.0 %)   Diluted net income per share: Income from continuing operations, as reported $ 0.16 0.32 (49.6 %) 1.04 1.28 (18.8 %) Visa litigation expense, net of income taxes 0.05 -- nm 0.07 -- nm   Net income per diluted share for Financial Services Segment, as adjusted $ 0.21 0.32 (35.2 %) 1.11 1.28 (13.5 %) Notes: nm = not meaningful                               Synovus believes that the above non-GAAP financial measures provide meaningful information to assist investors in understanding Synovus’ financial results, exclusive of items that management believes are not reflective of its operating results. The non-GAAP measures should not be considered by themselves or as a substitute for the GAAP measures. The non-GAAP measures should be considered as an additional view of the way Synovus’ financial measures are affected by the non-recurring spin-off related expenses, Visa litigation expenses, and the Bank of America termination fee; and should be used in conjunction with all publicly filed GAAP financial statements and reports. Synovus will host an earnings highlights conference call at 4:30 pm EDT, on January 24, 2008. Shareholders and other interested persons may listen to this conference call via simultaneous Internet broadcast at www.synovus.com by clicking on the "Live Webcast” icon. You may download RealPlayer or Windows Media Player (free download available) prior to accessing the actual call or the replay. The replay will be archived for 12 months and will be available 30-45 minutes after the call. Synovus (NYSE: "SNV”) is a financial services holding company with $33 billion in assets based in Columbus, Georgia. Synovus provides commercial and retail banking, as well as investment services, to customers through 37 banks, 440 ATMs, and other Synovus offices in Georgia, Alabama, South Carolina, Florida and Tennessee. The company focuses on its unique decentralized customer delivery model, position in high-growth Southeast markets and commitment to being a great place to work to ensure the delivery of unparalleled customer experiences. See Synovus on the Web at www.synovus.com. This press release may contain 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. 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. 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. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise.   Synovus     INCOME STATEMENT DATA (Unaudited)   (In thousands, except per share data) Twelve Months Ended December 31,   2007   2006   Change   Interest income (taxable equivalent) $ 2,243,463 2,022,257 10.9 %   Interest expense 1,089,456 890,677   22.3     Net interest income (taxable equivalent) 1,154,007 1,131,580 2.0 Tax equivalent adjustment 5,059 5,791   (12.6 )   Net interest income 1,148,948 1,125,789 2.1 Provision for loan losses 170,208 75,148   126.5     Net interest income after provision 978,740 1,050,641   (6.8 )   Non-interest income: Service charges on deposits 112,142 112,417 (0.2 ) Fiduciary and asset management fees 50,761 48,627 4.4 Brokerage and investment banking revenue 31,980 26,729 19.6 Mortgage banking income 27,006 29,255 (7.7 ) Bankcard fees 47,770 44,303 7.8 Securities gains (losses) 980 (2,118 ) nm Other fee income 39,307 38,743 1.5 Other non-interest income 79,082 61,474   28.6     Total non-interest income 389,028 359,430   8.2     Non-interest expense: Personnel expense 455,158 450,373 1.1 Occupancy and equipment expense 112,888 100,270 12.6 Other non-interest expense 235,248 213,890 10.0 Visa litigation expense 36,800 -   nm   Total non-interest expense 840,094 764,533   9.9     Income from continuing operations before income taxes 527,674 645,538 (18.3 ) Income taxes 184,739 230,435   (19.8 )   Income from continuing operations 342,935 415,103 (17.4 )   Income from discontinued operations, net of income taxes and minority interest (1) 183,370 201,814   (9.1 )   Net income $ 526,305 616,917   (14.7 )   Basic earnings per share Income from continuing operations $ 1.05 1.29 (18.8 )%   Net income 1.61 1.92 (16.2 )   Diluted earnings per share Income from continuing operations 1.04 1.28 (18.8 ) Net income 1.60 1.90 (16.1 )   Cash dividends declared per share 0.82 0.78 5.1   Return on average assets 1.60 % 2.07 (47 )bp   Return on average equity 13.37 18.31 (494 ) Average shares outstanding - basic 326,849 321,241 1.7 %   Average shares outstanding - diluted 329,863 324,232 1.7   bp - change is measured as difference in basis points. nm - not meaningful   (1) On December 31, 2007, Synovus Financial Corp. completed the spin-off of its shares of Total System Services, Inc. ("TSYS") common stock to Synovus shareholders. In accordance with the provisions of Statement of Financial Accounting Standards (SFAS) No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets," and SFAS No. 146, " Accounting for Costs Associated with Exit or Disposal Activities," the current period and historical consolidated results of operations of TSYS, as well as all costs recorded by Synovus Financial Corp. associated with the spin-off of TSYS, are now presented as a discontinued operation. Additionally, 2007 discontinued operations includes a second quarter $4.2 million after-tax gain related to the transfer of Synovus' proprietary mutual funds to a non-affiliated third party.                       Synovus   INCOME STATEMENT DATA (Unaudited) (In thousands, except per share data) 2007   2006 4th Quarter Fourth Quarter   Third Quarter   Second Quarter   First Quarter   Fourth Quarter   '07 vs. '06 Change Interest income (taxable equivalent) $ 554,989 573,545 565,777 549,243 547,079 1.4 % Interest expense 267,102 281,478 276,017 264,950 256,760 4.0     Net interest income (taxable equivalent) 287,887 292,067 289,760 284,293 290,319 (0.8 ) Tax equivalent adjustment 1,202 1,228 1,285 1,344 1,448 (17.0 )   Net interest income 286,685 290,839 288,475 282,949 288,871 (0.8 ) Provision for loan losses 70,642 58,770 20,281 20,515 18,675 278.3     Net interest income after provision 216,043 232,069 268,194 262,434 270,196 (20.0 )     Non-interest income: Service charges on deposits 28,985 28,736 28,050 26,370 28,136 3.0 Fiduciary and asset management fees 13,110 12,524 12,658 12,473 12,921 1.5 Brokerage and investment banking revenue 8,598 8,123 7,809 7,449 6,721 27.9 Mortgage banking income 6,130 5,955 7,695 7,226 6,837 (10.3 ) Bankcard fees 12,400 11,923 11,567 11,880 11,218 10.5 Securities gains (losses) 90 186 258 447 -    nm Other fee income 9,559 9,910 10,411 9,427 9,079 5.3 Other non-interest income 20,126 28,837 17,883 12,231 22,682 (11.3 )   Total non-interest income 98,998 106,194 96,331 87,503 97,594 1.4         Non-interest expense: Personnel expense 109,468 115,941 115,822 113,927 115,130 (4.9 ) Occupancy and equipment expense 29,976 28,055 27,572 27,290 26,370 13.7 Other non-interest expense 70,965 56,429 54,267 53,580 61,930 14.6 Visa litigation expense 24,800 12,000 - - -    nm     Total non-interest expense 235,209 212,425 197,661 194,797 203,430 15.6         Income from continuing operations before income taxes 79,832 125,838 166,864 155,140 164,360 (51.4 ) Income taxes 26,690 42,261 61,055 54,733 59,384 (55.1 )     Income from continuing operations 53,142 83,577 105,809 100,407 104,976 (49.4 )   Income from discontinued operations, net of income taxes and minority interest (1) 28,717 51,366 56,941 46,346 70,571 (59.3 )   Net income $ 81,859 134,943 162,750 146,753 175,547 (53.4 )       Basic earnings per share Income from continuing operations $ 0.16 0.26 0.32 0.31 0.32 (49.9 ) % Net income 0.25 0.41 0.50 0.45 0.54 (53.9 )   Diluted earnings per share Income from continuing operations 0.16 0.25 0.32 0.30 0.32 (49.6 ) Net income 0.25 0.41 0.49 0.45 0.54 (53.6 )   Cash dividends declared per share 0.21 0.21 0.21 0.21 0.20 5.1   Return on average assets (a) 0.96 % 1.70 2.00 1.86 2.22 (126 ) bp Return on average equity (a) 7.97 14.02 16.69 15.94 19.03 (1,106 )   Average shares outstanding - basic 328,052 327,215 326,410 325,687 324,555 1.1 % Average shares outstanding - diluted 329,453 330,160 330,263 329,573 328,122 0.4 bp - change is measured as difference in basis points. nm - not meaningful (a) - ratios are annualized     (1) On December 31, 2007, Synovus Financial Corp. completed the spin-off of its shares of Total System Services, Inc. ("TSYS") common stock to Synovus shareholders. In accordance with the provisions of Statement of Financial Accounting Standards (SFAS) No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets," and SFAS No. 146, "Accounting for Costs Associated with Exit or Disposal Activities," the current period and historical consolidated results of operations of TSYS, as well as all costs recorded by Synovus Financial Corp. associated with the spin-off of TSYS, are now presented as a discontinued operation. Additionally, discontinued operations for the three months ended June 30, 2007 includes a $4.2 million after-tax gain related to the transfer of Synovus' proprietary mutual funds to a non-affiliated third party.       Synovus         BALANCE SHEET DATA December 31, 2007 September 30, 2007 December 31, 2006   (Unaudited) (In thousands, except share data)   ASSETS Cash and due from banks $ 682,583 642,882 713,053 Interest earning deposits with banks 10,950 4,318 19,315 Federal funds sold and securities purchased under resale agreements 76,086 113,654 101,091 Trading account assets 17,803 33,009 15,266 Mortgage loans held for sale 153,437 165,837 175,042 Investment securities available for sale 3,666,974 3,628,766 3,352,357   Loans, net of unearned income 26,498,585 25,774,656 24,654,552 Allowance for loan losses (367,613 ) (356,887 ) (314,459 ) Loans, net 26,130,972   25,417,769   24,340,093       Premises and equipment, net 547,437 527,415 481,415 Goodwill, net 519,138 519,138 515,719 Other intangible assets, net 28,007 29,945 29,117 Other assets 1,067,893 1,002,259 720,870 Assets of discontinued operation (1) -   1,490,671   1,391,435     Total assets $ 32,901,280   33,575,663   31,854,773       LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits: Non-interest bearing retail and commercial deposits $ 3,472,423 3,566,749 3,768,775 Interest bearing retail and commercial deposits 18,199,997   18,196,568   17,745,204     Total retail and commercial deposits 21,672,420 21,763,317 21,513,979 Brokered time deposits 3,287,396   2,872,979   3,014,495     Total deposits 24,959,816 24,636,296 24,528,474   Federal funds purchased and other short-term liabilities 2,319,412 2,581,088 1,582,487 Long-term debt 1,890,235 1,680,478 1,343,358 Other liabilities 293,253 282,360 320,861 Liabilities of and minority interest in discontinued operation (1) -   341,085   370,943       Total liabilities 29,462,716   29,521,307   28,146,123           Shareholders' equity: Common stock, par value $1.00 a share (2) 335,529 334,095 331,214 Additional paid-in capital 1,098,184 1,107,653 1,033,055 Treasury stock (3) (113,944 ) (113,944 ) (113,944 ) Accumulated other comprehensive income (loss) 31,439 23,339 (2,129 ) Retained earnings 2,087,356   2,703,213   2,460,454   Total shareholders' equity (4) 3,438,564   4,054,356   3,708,650       Total liabilities and shareholders' equity $ 32,901,280   33,575,663   31,854,773       (1) On December 31, 2007, Synovus Financial Corp. completed the spin-off of its shares of Total System Services, Inc. ("TSYS") common stock to Synovus shareholders. In accordance with Statement of Financial Accounting Standards No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets," all prior period assets and liabilities of TSYS are presented as a discontinued operation.   (2) Common shares outstanding: 329,867,944; 328,433,944 and 325,552,375 at December 31, 2007, September 30, 2007, and December 31, 2006, respectively.   (3) Treasury shares: 5,661,538 at December 31, 2007, September 30, 2007, and December 31, 2006.   (4) Book value per share: $10.42 ; $12.34; and $11.39 at December 31, 2007, September 30, 2007, and December 31, 2006, respectively.     Synovus     AVERAGE BALANCES AND YIELDS/RATES (a) (Unaudited) (Dollars in thousands)     2007 2006     Twelve months ended Fourth Third Second First Fourth   December 31,   Quarter   Quarter Quarter Quarter Quarter     2007   2006 Interest Earning Assets   Taxable Investment Securities $ 3,496,843 3,495,017 3,420,831 3,301,137 3,178,852 $ 3,429,175 3,009,962 Yield 4.90 % 4.82 4.83 4.77 4.51 4.83 % 4.31   Tax-Exempt Investment Securities $ 164,587 170,211 178,183 185,012 193,737 $ 174,431 198,692 Yield (taxable equivalent) 6.82 % 6.72 6.75 6.84 6.93 6.77 % 6.79   Trading Account Assets $ 29,698 56,217 59,311 64,204 34,471 $ 52,274 43,201 Yield 7.05 % 7.15 6.47 5.65 6.67 6.45 % 6.14   Commercial Loans $ 22,157,460 21,820,687 21,739,107 21,242,921 20,791,108 $ 21,742,770 19,828,160 Yield 7.69 % 8.13 8.20 8.24 8.25 8.06 % 8.03   Consumer Loans $ 928,942 915,847 896,267 928,256 928,521 $ 917,326 903,218 Yield 8.05 % 8.17 8.14 8.01 7.98 8.09 % 7.89   Mortgage Loans $ 1,237,962 1,152,621 1,110,754 1,081,760 1,089,794 $ 1,146,221 1,073,296 Yield 7.04 % 7.10 7.03 6.98 6.99 7.04 % 6.86   Credit Card Loans $ 285,410 277,445 275,105 270,444 268,705 $ 277,143 263,549 Yield 10.26 % 10.96 10.64 11.17 10.89 10.75 % 10.85   Home Equity Loans $ 1,517,510 1,444,411 1,407,005 1,385,012 1,316,842 $ 1,438,864 1,247,715 Yield 7.34 % 7.80 7.82 7.68 7.82 7.66 % 7.70   Allowance for Loan Losses $ (357,283 )   (335,406 ) (329,028 ) (317,977 ) (317,603 ) $ (335,033 )   (309,658 )   Loans, Net $ 25,770,001 25,275,605 25,099,210 24,590,416 24,077,367 $ 25,187,291 23,006,280 Yield 7.79 % 8.21 8.26 8.28 8.29 8.13 % 8.09 Mortgage Loans Held for Sale $ 108,044 176,448 163,364 160,482 149,113 $ 152,007 132,332 Yield 6.12 % 6.91 6.18 6.07 6.02 6.36 % 6.54 Federal Funds Sold and Other Short-Term Investments $ 110,745 85,094 131,029 147,857 120,729 $ 118,488 132,566   Yield   4.63   % 5.76   5.37   5.55   5.33       5.30   % 5.06   Total Interest Earning Assets $ 29,679,918 29,258,592 29,051,928 28,449,108 27,754,269 $ 29,113,665 26,523,033   Yield   7.42   % 7.78   7.81   7.82   7.83       7.71   % 7.62     Interest Bearing Liabilities       Interest Bearing Demand Deposits $ 3,200,408 3,047,279 3,141,899 3,113,531 3,034,375 $ 3,125,802 3,006,308 Rate 1.99 % 2.24 2.28 2.30 2.18 2.20 % 1.92   Money Market Accounts $ 7,969,409 7,898,277 7,644,253 7,336,524 7,158,672 $ 7,714,360 6,515,079 Rate 3.98 % 4.45 4.51 4.51 4.47 4.36 % 4.14   Savings Deposits $ 454,204 479,479 497,422 502,948 514,317 $ 483,368 542,793 Rate 0.35 % 0.48 0.57 0.68 0.72 0.52 % 0.65   Time Deposits Under $100,000 $ 2,790,869 2,917,089 3,020,881 3,037,815 3,003,141 $ 2,940,920 2,791,759 Rate 4.69 % 4.81 4.85 4.79 4.64 4.78 % 4.15     Time Deposits Over $100,000 (less brokered time deposits) $ 4,006,351 4,029,091 4,118,221 4,101,471 3,997,493 $ 4,063,428 3,549,200 Rate 4.98   % 5.12   5.19   5.15   5.08   5.11   % 4.66 Total Interest Bearing Core Deposits 18,421,240 18,371,215 18,422,676 18,092,289 17,707,998 $ 18,327,878 16,405,139 Rate 3.87 % 4.19 4.23 4.22 4.14 4.12 % 3.73   Brokered Time Deposits $ 2,941,592 3,188,310 3,175,161 3,030,793 3,137,889 $ 3,084,006 2,855,191 Rate 4.98   % 5.19   5.05   5.08   5.01   5.08   % 4.70 Total Interest Bearing Deposits $ 21,362,832 21,559,525 21,597,837 21,123,082 20,845,887 $ 21,411,884 19,260,330 Rate 4.02 % 4.33 4.35 4.34 4.27 4.26 % 3.88   Federal Funds Purchased and Other Short-Term Liabilities $ 2,472,339 1,930,598 1,720,535 1,700,304 1,295,379 $ 1,957,990 1,578,163 Rate 4.37 % 4.84 4.96 4.86 4.70 4.68 % 4.56   Long-Term Debt $ 1,819,198 1,660,788 1,552,310 1,441,241 1,356,451 $ 1,619,536 1,515,306   Rate   5.08   % 5.32   5.18   5.07   4.91       5.12   % 4.62   Total Interest Bearing Liabilities $ 25,654,369 25,150,911 24,870,682 24,264,627 23,497,717 $ 24,989,409 22,353,799   Rate   4.12   % 4.43   4.44   4.42   4.33       4.35   % 3.98   Non-Interest Bearing Demand Deposits $ 3,422,684     3,405,622   3,428,246   3,381,056   3,486,641     $ 3,409,506     3,518,312   Net Interest Margin   3.86   % 3.97   4.00   4.05   4.16       3.97   % 4.27   (a) Yields and rates are annualized.   (1) On December 31, 2007, Synovus Financial Corp. completed the spin-off of its shares of Total System Services, Inc. ("TSYS") common stock to Synovus shareholders. In accordance with the provisions of Statement of Financial Accounting Standards No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets," the current period and historical consolidated results of operations, assets, and liabilities of TSYS are now presented as a discontinued operation. Accordingly, the above earning assets, liabilities, yields, and cost of funds exclude the amounts related to TSYS due to the de-consolidation of TSYS.   Synovus       LOANS OUTSTANDING AND NONPERFORMING LOANS COMPOSITION (Unaudited) (Dollars in thousands)     December 31, 2007 Loan Type Total Loans   Loans as a %of Total LoansOutstanding       TotalNonperformingLoans   Nonperforming Loansas a % of TotalNonperforming Loans     Multi-Family $ 465,281 1.8 % $ 1,510 0.5 % Hotels 614,979 2.3 - - Office Buildings 953,753 3.6 6,252 1.8 Shopping Centers 836,092 3.2 744 0.2 Commercial Development 963,526 3.6 7,760 2.3 Other Investment Property 685,846 2.6 4,244 1.3   Total Investment Properties 4,519,477 17.1 20,510 6.1   1-4 Family Construction 2,238,925 8.4 105,329 30.8 1-4 Family Perm / Mini-Perm 1,267,451 4.8 34,201 10.0 Residential Development 2,311,459 8.7 79,828 23.3   Total 1-4 Family Properties 5,817,835 21.9 219,358 64.1   Land Acquisition 1,545,933 5.8 35,699 10.4   Total Commercial Real Estate 11,883,245 44.8 275,567 80.6   Commercial, Financial, and Agricultural 6,424,499 24.2 41,808 12.2 Owner-Occupied 4,239,639 16.0 12,091 3.6   Total Commercial & Industrial 10,664,138 40.2 53,899 15.8   Home Equity 1,543,701 5.8 3,892 1.1 Consumer Mortgages 1,667,924 6.3 6,983 2.0 Credit Card 291,149 1.1 - - Other Retail Loans 494,591 1.9 1,741 0.5   Total Retail 3,997,365 15.1 12,616 3.6   Unearned Income (46,163) (0.1) - -   Total $ 26,498,585 100.0 % $ 342,082 100.0 % LOANS OUTSTANDING BY TYPE COMPARISON (Unaudited) (Dollars in thousands)                                   Total Loans 4Q07 vs. 3Q07 4Q07 vs. 4Q06 Loan Type December 31, 2007   September 30, 2007     % change (1)       December 31, 2006   % change       Multi-Family $ 465,281 449,814 13.6 % $ 505,586 (8.0) % Hotels 614,979 591,527 15.7 643,180 (4.4) Office Buildings 953,753 881,138 32.7 881,658 8.2 Shopping Centers 836,092 739,334 51.9 764,924 9.3 Commercial Development 963,526 937,367 11.1 876,570 9.9 Other Investment Property 685,846 652,408 20.3 461,963 48.5     Total Investment Properties 4,519,477 4,251,588 25.0 4,133,881 9.3       1-4 Family Construction 2,238,925 2,302,842 (11.0) 2,347,025 (4.6) 1-4 Family Perm / Mini-Perm 1,267,451 1,219,577 15.6 1,193,895 6.2 Residential Development 2,311,459 2,269,844 7.3 2,036,207 13.5       Total 1-4 Family Properties 5,817,835 5,792,263 1.8 5,577,127 4.3   Land Acquisition 1,545,933 1,476,042 18.8 1,402,402 10.2       Total Commercial Real Estate 11,883,245 11,519,893 12.5 11,113,410 6.9       Commercial , Financial, and Agricultural 6,424,499 6,268,524 9.9 5,874,204 9.4 Owner-Occupied 4,239,639 4,166,683 6.9 4,054,728 4.6       Total Commercial & Industrial 10,664,138 10,435,207 8.7 9,928,932 7.4     Home Equity 1,543,701 1,478,694 17.4 1,364,030 13.2 Consumer Mortgages 1,667,924 1,620,730 11.6 1,517,849 9.9 Credit Card 291,149 280,192 15.5 276,269 5.4 Other Retail Loans 494,591 485,928 7.1 500,757 (1.2)     Total Retail 3,997,365 3,865,544 13.5 3,658,905 9.3   Unearned Income (46,163) (45,988) 1.5 (46,695) (1.1)       Total $ 26,498,585 25,774,656 11.1 % $ 24,654,552 7.5 %   (1) Percentage change is annualized. Synovus               CREDIT QUALITY DATA (Unaudited) (Dollars in thousands) 2007 2006 4th Quarter FourthQuarter   ThirdQuarter   SecondQuarter   FirstQuarter FourthQuarter   '07 vs. '06Change   Nonperforming Loans $ 342,082 224,055 180,776 138,790 96,622 254.0 % Other Real Estate 101,487 76,514 41,259 31,710 25,923 291.4 Nonperforming Assets 443,569 300,569 222,035 170,500 122,545 261.9 Allowance for Loan Losses 367,613 356,887 331,130 326,826 314,459 16.9   Net Charge-Offs - Quarter 59,916 33,013 15,978 8,148 24,190 147.7 Net Charge-Offs - YTD 117,055 57,139 24,126 8,148 60,217 94.4 Net Charge-Offs / Average Loans - Quarter 0.91 % 0.51 0.25 0.13 0.39 Net Charge-Offs / Average Loans - YTD 0.46 0.30 0.19 0.13 0.26   Nonperforming Loans / Loans & ORE 1.29 0.87 0.71 0.55 0.39 Nonperforming Assets / Loans & ORE 1.67 1.16 0.87 0.68 0.50 Allowance / Loans 1.39 1.38 1.30 1.30 1.28   Allowance / Nonperforming Loans 107.46 159.29 183.17 235.48 325.45 Allowance / Nonperforming Assets 82.88 118.74 149.13 191.69 256.61   Past Due Loans over 90 days 33,663 22,667 23,067 27,414 34,495 (2.4) % As a Percentage of Loans Outstanding 0.13 0.09 0.09 0.11 0.14   Total Past Dues 270,496 230,035 164,180 150,188 155,058 74.4 As a Percentage of Loans Outstanding 1.02 0.89 0.64 0.60 0.63                                 REGULATORY CAPITAL RATIOS (1) (Unaudited) (Dollars in thousands) December 31, 2007   September 30, 2007   December 31, 2006     Tier 1 Capital $ 2,867,720 3,615,522 3,254,603 Total Risk-Based Capital 3,985,344 4,722,409 4,319,062 Tier 1 Capital Ratio 9.10 % 11.42 10.87 Total Risk-Based Capital Ratio 12.64 14.92 14.43 Leverage Ratio 8.65 11.16 10.64   (1) December 31, 2007 information is preliminary.