Synovus Reports 6.5% Increase in Net Income for Second Quarter 2007

Synovus’ second quarter earnings grew 6.5% over the second quarter of 2006 to $162.8 million, which represented diluted earnings per share growth of 5.0% to $.49 per share, Synovus’ Chief Executive Officer Richard E. Anthony announced today. "We met our performance expectations in the second quarter of 2007 in a continued challenging environment,” said Anthony. "Our commercial strategy continued to show strength in the quarter and strong momentum in TSYS’ performance drove the results for the quarter.” Return on assets for the quarter was 2.00% and return on equity was 16.69% for the second quarter 2007, compared to 2.07% and 18.45%, respectively, in the same period last year. Shareholders’ equity at June 30, 2007, was $3.93 billion, which represented a very strong 11.82% of quarter-end assets. Total assets ended the quarter at $33.2 billion, an increase of 8.8% from the same period last year. Financial Services’ net income was up 3.1 % over the second quarter last year. Net interest income grew 1.1% over the second quarter last year as total loans grew 7.9%. On a sequential quarter basis, commercial and industrial loans grew 7.9% while commercial real estate loans grew 2.3%. The net interest margin for the quarter was 4.05%, compared to 4.10% last quarter and 4.39% in the second quarter of last year. The linked quarter margin decline was slightly higher than our expectations, primarily due to slower than expected demand deposit account growth and the negative impact of additional non-accrual loans. However, the direction of the cost of interest bearing funds began to show improvement during the quarter. Total core deposit growth (excludes brokered time deposits) was 9.0% over the second quarter of 2006. The ratio of nonperforming assets to loans and other real estate was 0.87%, up from 0.68% last quarter and 0.48% in the second quarter of last year. The net charge-off ratio was 0.25% compared to 0.13% last quarter and 0.17% in the second quarter of last year. The allowance for loan losses was 1.30% of loans, which was the same as last quarter and 1.33% in the second quarter last year. The provision for loan losses covered net charge-offs by 1.27x for the quarter. Financial Services’ non-interest income was up 7.7% over the second quarter last year with increases in brokerage and investment banking revenue of 19.1%, fiduciary and asset management fees – which include trust, financial planning and asset management fees – of 8.0%, and bankcard fees of 4.3%. The second quarter results include a $4.2 million after-tax gain from discontinued operations resulting from the transfer of the Synovus mutual funds. Financial Services’ non-interest expense was up 3.8% compared to the second quarter of 2006. During the quarter, six new branches were added, bringing the total number to 321 branches in the footprint. TSYS reported net income of $65.7 million for the second quarter 2007 compared to $57.4 million last year, a 14.4% increase. Diluted earnings per share for the quarter increased to $0.33, up from $0.29 last year, a 14.5% increase. During the quarter, TSYS completed the pilot program for the Wal-Mart MoneyCard, issued by GE and reloaded through Green Dot’s national reloading network. The Visa-branded prepaid product will be available in 2,600 Wal-Mart stores by the end of July. TSYS renewed merchant acquiring service agreements with Merchant Management Systems, as well as signed new agreements with MPay Gateway and The Bancorp Bank. TSYS announced that CUP Data, TSYS’ joint venture with China UnionPay, has recently begun providing services for Huaxia Bank Co., Ltd, one of China’s largest nationwide banks. Anthony continued, "As we began the year, our earnings guidance was based on stable to modestly lower short-term interest rates, a margin for the year of approximately 4.20%, a favorable credit environment, loan growth of approximately 10%, Financial Services’ segment net income growth of approximately 10%, and TSYS’ net income growth within its range of guidance. These assumptions guided our expectations for 2007 earnings per share to be in the range of $1.96 to $1.98. After the first six months in 2007, we now expect full year earnings per share to be in the range of $1.90 to $1.95.” Synovus’ 2007 earnings outlook is based on the following assumptions for the full year: Mid to high single digit loan growth. Net interest margin in the 4.05 – 4.10% range. Net charge-off ratio to be approximately 0.25%. TSYS’ net income growth within its range of guidance. Anthony concluded, "During the July 26 Synovus Board of Directors meeting, I will ask the board to consider all TSYS spin-related issues and to appoint a special committee of independent directors to make a final recommendation with respect to whether to distribute Synovus’ ownership interest in TSYS to Synovus’ shareholders. Although no specific timeframe for committee and board deliberations will be defined, I hope to be able to announce the Board’s decision no later than our third quarter analyst call. However, no assurances can be given regarding the timing or terms of any spin-off, or whether any spin-off will in fact occur.” The aforementioned earnings guidance of $1.90 to $1.95 does not include the expenses associated with the potential spin-off transaction. Synovus will host an earnings highlights conference call at 4:30 pm EDT, on July 24, 2007. 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 diversified financial services holding company with over $33 billion in assets based in Columbus, Georgia. Synovus provides integrated financial services including banking, financial management, insurance, mortgage and leasing services through 39 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”), one of the world’s largest companies for outsourced payment services. 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. 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 Synovus’ expected growth in earnings per share for 2007, statements regarding the potential distribution by Synovus of its ownership interest in TSYS and management’s hope that it will be able to announce the Board’s decision no later than Synovus’ third quarter analyst call, and the assumptions underlying such statements, including, with respect to Synovus’ expected increase in earnings per share for 2007, mid to high single digit loan growth, a net interest margin in the 4.05 – 4.10% range, a net charge-off ratio of approximately 0.25% and TSYS’ net income growth within its range of guidance. With respect to a spin-off of TSYS, no assurance can be given regarding the timing or terms of any spin-off, or whether any spin-off will in fact occur. 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 does not perform within its range of guidance; 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, regulatory investigations, or similar matters, or adverse facts and developments related thereto, including the FDIC’s investigation of the policies, practices and procedures used by Columbus Bank and Trust Company (a subsidiary of Synovus) in connection with the credit card programs offered pursuant to its Affinity Agreement with CompuCredit Corporation; the impact of the application of and/or changes in accounting principles; the effects of changes in government policy, laws and regulations, or the interpretation or application thereof, including restrictions and/or limitations arising from banking laws, regulations and examinations; changes in consumer spending, borrowing and saving habits; technological changes; 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. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise. Synovus   INCOME STATEMENTS   (Unaudited) (In thousands, except per share data)     Six Months Ended June 30,   2007   2006   Change   Interest Income (Taxable Equivalent) $ 1,114,990 940,137 18.6 % Interest Expense   534,171 387,567 37.8     Net Interest Income (Taxable Equivalent) 580,819 552,570 5.1 Tax Equivalent Adjustment   2,648 2,931 (9.6 )   Net Interest Income 578,171 549,639 5.2 Provision for Loan Losses   40,797 38,083 7.1     Net Interest Income After Provision   537,374 511,556 5.0     Non-Interest Income: Electronic Payment Processing Services 472,153 451,867 4.5 Merchant Acquiring Services 124,957 129,769 (3.7 ) Other Transaction Processing Services Revenue 108,244 89,947 20.3 Service Charges on Deposits 54,420 54,988 (1.0 ) Fiduciary and Asset Management Fees 24,696 23,222 6.3 Brokerage and Investment Banking Revenue 15,259 13,506 13.0 Mortgage Banking Income 14,920 13,978 6.7 Bankcard Fees 23,447 21,647 8.3 Securities Gains (Losses) 705 (1,136 ) nm Other Fee Income 19,838 19,640 1.0 Other Non-Interest Income   25,913 20,317 27.5     Non-Interest Income before Reimbursable Items 884,552 837,747 5.6 Reimbursable Items   181,555 168,638 7.7     Total Non-Interest Income   1,066,107 1,006,385 5.9     Non-Interest Expense: Personnel Expense 516,721 461,605 11.9 Occupancy & Equipment Expense 187,147 197,195 (5.1 ) Other Non-Interest Expense   202,008 215,524 (6.3 )   Non-Interest Expense before Reimbursable Items 905,876 874,325 3.6 Reimbursable Items   181,555 168,638 7.7     Total Non-Interest Expense   1,087,431 1,042,963 4.3     Minority Interest in Consolidated Subsidiaries 24,465 20,905 17.0 Income from Continuing Operations before Income Taxes 491,585 454,071 8.3 Income Taxes   186,283 166,769 11.7     Income from Continuing Operations 305,302 287,304 6.3   Discontinued Operations, Net of Income Taxes   4,200 - nm     Net Income $ 309,502 287,304 7.7     Basic Earnings Per Share Income from Continuing Operations $ 0.94 0.90 3.7 Net Income 0.95 0.90 5.1 Diluted Earnings Per Share Income from Continuing Operations 0.93 0.90 3.3 Net Income 0.94 0.90 4.8 Dividends Declared Per Share 0.41 0.39 5.1   Return on Assets (a) 1.93 % 2.02 (9 )bp Return on Equity (a) 16.33 18.25 (192 ) Average Shares Outstanding - Basic 326,051 318,236 2.5 % Average Shares Outstanding - Diluted 329,920 320,840 2.8   bp - change is measured as difference in basis points. nm - not meaningful (a) - ratios are annualized   Synovus   INCOME STATEMENTS (Unaudited) (In thousands, except per share data)     2007 2006 2nd Quarter Second First Fourth Third Second '07 vs. '06 Quarter   Quarter   Quarter   Quarter   Quarter   Change   Interest Income (Taxable Equivalent) $ 565,737 549,253 547,088 535,038 499,191 13.3 % Interest Expense 272,536 261,637 253,998 241,027 210,510 29.5       Net Interest Income (Taxable Equivalent) 293,201 287,616 293,090 294,011 288,681 1.6 Tax Equivalent Adjustment 1,295 1,354 1,458 1,409 1,478 (12.4 )     Net Interest Income 291,906 286,262 291,632 292,602 287,203 1.6 Provision for Loan Losses 20,281 20,515 18,675 18,390 18,534 9.4       Net Interest Income After Provision 271,625 265,747 272,957 274,212 268,669 1.1       Non-Interest Income: Electronic Payment Processing Services 243,411 228,742 302,370 231,753 231,274 5.2 Merchant Acquiring Services 64,277 60,680 64,957 65,548 65,820 (2.3 ) Other Transaction Processing Services Revenue 55,121 53,123 51,634 44,813 45,001 22.5 Service Charges on Deposits 28,050 26,370 28,136 29,292 28,800 (2.6 ) Fiduciary and Asset Management Fees 12,434 12,262 12,710 11,868 11,509 8.0 Brokerage and Investment Banking Revenue 7,809 7,449 6,721 6,502 6,559 19.1 Mortgage Banking Income 7,695 7,226 6,837 8,440 8,105 (5.1 ) Bankcard Fees 11,567 11,880 11,218 11,438 11,093 4.3 Securities Gains (Losses) 258 447 - (982 ) (1,062 ) nm Other Fee Income 10,411 9,427 9,079 10,024 10,357 0.5 Other Non-Interest Income 15,187 10,726 21,707 10,057 10,915 39.1         Non-Interest Income before Reimbursable Items 456,220 428,332 515,369 428,753 428,371 6.5 Reimbursable Items 95,828 85,727 83,894 99,187 86,138 11.2       Total Non-Interest Income 552,048 514,059 599,263 527,940 514,509 7.3       Non-Interest Expense: Personnel Expense 261,768 254,953 256,691 256,220 233,847 11.9 Occupancy & Equipment Expense 94,234 92,914 116,470 100,504 99,495 (5.3 ) Other Non-Interest Expense 103,448 98,557 115,755 98,995 109,690 (5.7 )     Non-Interest Expense before Reimbursable Items 459,450 446,424 488,916 455,719 443,032 3.7 Reimbursable Items 95,828 85,727 83,894 99,187 86,138 11.2       Total Non-Interest Expense 555,278 532,151 572,810 554,905 529,170 4.9       Minority Interest in Consolidated Subsidiaries 13,187 11,278 16,790 10,406 11,165 18.1 Income from Continuing Operations before Income Taxes 255,208 236,377 282,620 236,840 242,843 5.1 Income Taxes 96,658 89,624 107,073 82,774 90,046 7.3       Income from Continuing Operations 158,550 146,753 175,547 154,066 152,797 3.8   Discontinued Operations, Net of Income Taxes 4,200 - - - - nm     Net Income $ 162,750 146,753 175,547 154,066 152,797 6.5         Basic Earnings Per Share Income from Continuing Operations $ 0.49 0.45 0.54 0.48 0.47 2.6 Net Income 0.50 0.45 0.54 0.48 0.47 5.3 Diluted Earnings Per Share Income from Continuing Operations 0.48 0.45 0.54 0.47 0.47 2.3 Net Income 0.49 0.45 0.54 0.47 0.47 5.0 Dividends Declared Per Share 0.21 0.21 0.20 0.20 0.20 5.1   Return on Assets (a) 2.00 % 1.86 % 2.22 % 2.00 % 2.07 % (7 )bp Return on Equity (a) 16.69 15.94 19.03 17.63 18.45 (176 ) Average Shares Outstanding - Basic 326,410 325,687 324,555 323,657 322,783 1.1 % Average Shares Outstanding - Diluted 330,263 329,573 328,122 326,834 325,421 1.5   bp - change is measured as difference in basis points. nm - not meaningful (a) - ratios are annualized   Synovus   Financial Services Segment INCOME STATEMENTS   (Unaudited) (In thousands)     Six Months Ended   June 30,   2007   2006   Change   Interest Income (Taxable Equivalent) $ 1,115,020 940,153 18.6 % Interest Expense   540,967 391,043 38.3     Net Interest Income (Taxable Equivalent) 574,053 549,110 4.5 Tax Equivalent Adjustment   2,629 2,946 (10.8 )   Net Interest Income 571,424 546,164 4.6 Provision for Loan Losses   40,797 38,083 7.1     Net Interest Income After Provision   530,627 508,081 4.4     Non-Interest Income: Service Charges on Deposits 54,420 54,989 (1.0 ) Fiduciary and Asset Management Fees 25,129 23,629 6.3 Brokerage and Investment Banking Revenue 15,259 13,506 13.0 Mortgage Banking Income 14,920 13,978 6.7 Bankcard Fees 23,447 21,647 8.3 Securities Gains (Losses) 705 (1,136 ) nm Other Fee Income 19,838 19,640 1.0 Other Non-Interest Income   30,116 26,262 14.7     Total Non-Interest Income   183,834 172,517 6.6       Non-Interest Expense: Personnel Expense 229,749 221,401 3.8 Occupancy & Equipment Expense 54,860 48,333 13.5 Other Non-Interest Expense   108,210 100,063 8.1       Total Non-Interest Expense 392,819 369,797 6.2             Income from Continuing Operations before Income Taxes 321,642 310,801 3.5 Income Taxes   115,787 110,657 4.6       Income from Continuing Operations 205,855 200,145 2.9   Discontinued Operations, Net of Income Taxes   4,200 - nm     Net Income $ 210,055 200,145 5.0         Return on Assets (a) 1.37 1.47 (10 )bp Return on Equity (a) 15.16 17.38 (222 )   bp - change is measured as difference in basis points. nm - not meaningful (a) - ratios are annualized   Synovus     Financial Services Segment INCOME STATEMENTS (Unaudited) (In thousands)     2007   2006 2nd Quarter Second First Fourth Third Second '07 vs. '06   Quarter   Quarter   Quarter   Quarter   Quarter   Change     Interest Income (Taxable Equivalent) $ 565,777 549,243 547,079 535,025 499,184 13.3 % Interest Expense   276,017 264,950 256,760 242,875 212,499 29.9     Net Interest Income (Taxable Equivalent) 289,760 284,293 290,319 292,150 286,685 1.1 Tax Equivalent Adjustment   1,285 1,344 1,448 1,395 1,471 (12.6 )   Net Interest Income 288,475 282,949 288,871 290,755 285,214 1.1 Provision for Loan Losses   20,281 20,515 18,675 18,390 18,534 9.4     Net Interest Income After Provision   268,194 262,434 270,196 272,365 266,680 0.6     Non-Interest Income: Service Charges on Deposits 28,050 26,370 28,136 29,292 28,800 (2.6 ) Fiduciary and Asset Management Fees 12,658 12,473 12,921 12,078 11,720 8.0 Brokerage and Investment Banking Revenue 7,809 7,449 6,721 6,502 6,559 19.1 Mortgage Banking Income 7,695 7,226 6,837 8,440 8,105 (5.1 ) Bankcard Fees 11,567 11,880 11,218 11,438 11,093 4.3 Securities Gains (Losses) 258 447 - (982 ) (1,062 ) nm Other Fee Income 10,411 9,427 9,079 10,024 10,357 0.5 Other Non-Interest Income   17,883 12,231 22,682 12,527 13,881 28.8     Total Non-Interest Income   96,331 87,503 97,594 89,319 89,453 7.7     Non-Interest Expense: Personnel Expense 115,822 113,927 115,131 113,842 113,951 1.6 Occupancy & Equipment Expense 27,572 27,290 26,370 25,566 24,835 11.0 Other Non-Interest Expense   54,628 53,580 61,930 51,899 52,064 4.9     Total Non-Interest Expense   198,022 194,797 203,430 191,307 190,850 3.8     Income from Continuing Operations before Income Taxes 166,503 155,140 164,360 170,377 165,283 0.7 Income Taxes   61,055 54,733 59,384 60,394 58,899 3.7       Income from Continuing Operations 105,448 100,407 104,976 109,983 106,384 (0.9 )   Discontinued Operations, Net of Income Taxes   4,200 - - - - nm       Net Income $ 109,648 100,407 104,976 109,983 106,384 3.1         Return on Assets (a) 1.40 % 1.33 % 1.39 % 1.49 % 1.50 % (10 )bp Return on Equity (a) 15.37 14.95 15.45 17.04 17.42 (205 )     bp - change is measured as difference in basis points. nm - not meaningful (a) - ratios are annualized   Synovus                 BALANCE SHEETS June 30, 2007 December 31, 2006 June 30, 2006 (Unaudited) (In thousands, except share data)   ASSETS Cash and due from banks $ 882,344 889,975 887,154 Interest earning deposits with banks 5,157 19,389 11,885 Federal funds sold and securities purchased under resale agreements 241,685 101,091 203,631 Trading account assets 70,626 15,266 46,939 Mortgage loans held for sale 190,587 175,042 170,650 Investment securities available for sale 3,558,813 3,352,357 3,137,486   Loans, net of unearned income 25,541,742 24,654,552 23,661,964 Allowance for loan losses   (331,130 ) (314,459 ) (313,694 ) Loans, net   25,210,612   24,340,093   23,348,270       Premises and equipment, net 784,703 752,738 707,988 Contract acquisition costs and computer software, net 358,021 383,899 406,793 Goodwill, net 683,732 669,515 607,501 Other intangible assets, net 52,177 63,586 52,894 Other assets   1,184,788   1,091,822   945,897     Total assets $ 33,223,246   31,854,773   30,527,088       LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits: Non-interest bearing retail and commercial deposits $ 3,595,118 3,538,598 3,806,277 Interest bearing retail and commercial deposits   18,126,822   17,741,354   16,124,042     Total retail and commercial deposits 21,721,940 21,279,952 19,930,319 Brokered time deposits   3,275,948   3,014,495   3,123,380     Total deposits 24,997,887 24,294,447 23,053,699   Federal funds purchased and other short-term liabilities 1,786,187 1,572,809 1,974,272 Long-term debt 1,673,124 1,350,139 1,421,578 Other liabilities   578,314   692,019   488,559     Total liabilities   29,035,511   27,909,414   26,938,108     Minority interest in consolidated subsidiaries 262,013 236,709 215,521   Shareholders' equity: Common stock, par value $1.00 a share (1) 333,078 331,214 329,097 Additional Paid in Capital 1,091,541 1,033,055 960,054 Treasury stock (2) (113,944 ) (113,944 ) (113,944 ) Accumulated other comprehensive loss (20,905 ) (2,129 ) (54,783 ) Retained earnings   2,635,952   2,460,454   2,253,035     Total shareholders' equity (3)   3,925,722   3,708,650   3,373,459     Total liabilities and shareholders' equity $ 33,223,246   31,854,773   30,527,088     (1) Common shares outstanding: 327,416,936; 325,552,375; and 323,435,831 at June 30, 2007, December 31, 2006, and June 30, 2006, respectively. (2) Treasury shares: 5,661,538 at June 30, 2007, December 31, 2006, and June 30, 2006. (3) Book value per share: $11.99; $11.39; and $10.43 at June 30, 2007, December 31, 2006, and June 30, 2006, respectively.   Synovus   AVERAGE BALANCES AND YIELDS/RATES (a) (Unaudited) (Dollars in thousands)   2007 2006 Second First Fourth Third Second   Quarter   Quarter   Quarter   Quarter   Quarter   Interest Earning Assets   Taxable Investment Securities $ 3,420,831 3,301,137 3,178,852 3,025,507 3,008,122 Yield 4.83 % 4.77 4.51 4.39 4.21   Tax-Exempt Investment Securities $ 178,183 185,012 193,737 197,024 202,676 Yield (taxable equivalent) 6.75 % 6.84 6.95 6.70 6.73   Trading Account Assets $ 59,311 64,204 34,471 53,181 47,398 Yield 6.47 % 5.65 6.67 5.30 5.72   Commercial Loans $ 21,739,107 21,242,921 20,791,108 20,407,139 19,723,353 Yield 8.20 % 8.24 8.25 8.23 7.99   Consumer Loans $ 896,267 928,256 928,521 929,964 898,210 Yield 8.14 % 8.01 7.98 7.96 7.88   Mortgage Loans $ 1,110,754 1,081,760 1,089,794 1,091,425 1,071,477 Yield 7.03 % 6.98 6.99 6.93 6.82   Credit Card Loans $ 275,105 270,444 268,705 265,120 260,010 Yield 10.64 % 11.17 10.89 10.86 10.81   Home Equity Loans $ 1,407,005 1,385,012 1,316,842 1,252,803 1,231,592 Yield 7.82 % 7.68 7.82 7.97 7.69   Allowance for Loan Losses $ (329,028 ) (317,977 ) (317,603 ) (318,195 ) (307,674 )   Loans, Net $ 25,099,209 24,590,415 24,077,367 23,628,256 22,876,968 Yield 8.26 % 8.28 8.29 8.29 8.06   Mortgage Loans Held for Sale $ 163,364 160,482 149,113 130,196 132,605 Yield 6.18 % 6.07 6.02 6.51 7.08   Federal Funds Sold and Other Short-Term Investments $ 131,092 147,932 120,804 155,200 139,923 Yield 5.42 % 5.61 5.40 5.32 5.07                           Total Interest Earning Assets $ 29,051,989 28,449,181 27,754,344 27,189,364 26,407,692   Yield   7.81 % 7.82   7.83   7.81   7.58     Interest Bearing Liabilities   Interest Bearing Demand Deposits $ 3,141,899 3,113,531 3,034,375 2,946,646 3,040,292 Rate 2.28 % 2.30 2.18 2.03 1.81   Money Market Accounts $ 7,388,012 7,083,633 6,956,181 6,587,365 6,196,865 Rate 4.49 % 4.49 4.45 4.38 4.00   Savings Deposits $ 497,422 502,948 514,317 547,779 573,776 Rate 0.57 % 0.68 0.72 0.72 0.69   Time Deposits Under $100,000 $ 3,020,881 3,037,815 3,003,141 2,917,518 2,738,528 Rate 4.85 % 4.79 4.64 4.38 3.92   Time Deposits Over $100,000 (less brokered time deposits) $ 4,118,221 4,101,471 3,997,493 3,756,853 3,362,304 Rate 5.19 % 5.15   5.07   4.92   4.44     Total Interest Bearing Core Deposits 18,166,435 17,839,398 17,505,507 16,756,161 15,911,765 Rate 4.22 % 4.20 4.12 3.97 3.54   Brokered Time Deposits $ 3,175,161 3,030,793 3,137,889 3,165,905 2,740,674 Rate 5.05 % 5.08   5.01   4.85   4.57     Total Interest Bearing Deposits $ 21,341,596 20,870,191 20,643,396 19,922,066 18,652,438 Rate 4.34 % 4.33 4.26 4.11 3.69   Federal Funds Purchased and Other Short-Term Liabilities $ 1,711,310 1,690,049 1,283,832 1,553,699 1,772,113 Rate 4.90 % 4.87 4.72 4.73 4.76   Long-Term Debt $ 1,565,014 1,450,466 1,360,635 1,364,226 1,586,586 Rate 5.12 % 5.05 4.90 4.57 4.42                           Total Interest Bearing Liabilities $ 24,617,920 24,010,706 23,287,863 22,839,991 22,011,138   Rate   4.43 % 4.41   4.32   4.18   3.83     Non-Interest Bearing Demand Deposits $ 3,372,063 3,372,105 3,469,233 3,528,942 3,511,554 Shareholders' Equity $ 3,910,911 3,733,523 3,659,996 3,467,029 3,321,397 Total Assets $ 32,711,205 32,022,912 31,307,991 30,613,827 29,563,064                           Net Interest Margin   4.05 % 4.10   4.20   4.30   4.39     (a) Yields and rates are annualized.   Synovus   LOANS OUTSTANDING AND NONPERFORMING LOANS COMPOSITION (Unaudited) (Dollars in thousands)   June 30, 2007 Loan Type Total Loans   Loans as a % of Total Loans Outstanding     Total Nonperforming Loans   Nonperforming Loans as a % of Total Nonperforming Loans     Multi-Family $ 489,453 1.9 % $ 362 0.2 % Hotels 581,376 2.3 - 0.0 Office Buildings 857,360 3.4 3,339 1.9 Shopping Centers 712,210 2.8 - 0.0 Commercial Development 920,913 3.6 1,518 0.8 Other Investment Property 644,109 2.5 740 0.4               Total Investment Properties 4,205,421 16.5 5,959 3.3               1-4 Family Construction 2,382,147 9.3 39,389 21.8 1-4 Family Perm / Mini-Perm 1,167,658 4.6 21,651 12.0 Residential Development 2,297,806 9.0 31,674 17.5               Total 1-4 Family Properties 5,847,611 22.9 92,714 51.3               Land Acquisition 1,430,431 5.6 10,553 5.8               Total Commercial Real Estate 11,483,463 45.0 109,226 60.4               Commercial, Financial, and Agricultural 6,246,493 24.4 41,100 22.7 Owner-Occupied 4,132,559 16.2 18,929 10.5               Total Commercial & Industrial 10,379,052 40.6 60,029 33.2   Home Equity 1,417,681 5.6 3,355 1.9 Consumer Mortgages 1,544,932 6.0 6,557 3.6 Credit Card 280,806 1.1 - 0.0 Other Retail Loans 483,820 1.9 1,609 0.9               Total Retail 3,727,239 14.6 11,521 6.4   Unearned Income (48,012 ) (0.2 ) -               Total $ 25,541,742 100.0 % $ 180,776 100.0 %                               LOANS OUTSTANDING BY TYPE COMPARISON (Unaudited) (Dollars in thousands)                         Total Loans 2Q07 vs. 4Q06 2Q07 vs. 2Q06 Loan Type June 30, 2007     December 31, 2006   % change(1)   June 30, 2006   % change   Multi-Family $ 489,453 505,586 (6.4 )% $ 532,278 (8.0 )% Hotels 581,376 643,180 (19.4 ) 680,771 (14.6 ) Office Buildings 857,360 881,658 (5.6 ) 869,955 (1.4 ) Shopping Centers 712,210 764,924 (13.9 ) 717,644 (0.8 ) Commercial Development 920,913 876,570 10.2 913,642 0.8 Other Investment Property 644,109 434,298 97.4 411,340 56.6                   Total Investment Properties 4,205,421 4,106,216 4.9 4,125,630 1.9                   1-4 Family Construction 2,382,147 2,347,025 3.0 2,140,393 11.3 1-4 Family Perm / Mini-Perm 1,167,658 1,193,895 (4.4 ) 1,178,113 (0.9 ) Residential Development 2,297,806 2,036,207 25.9 1,873,333 22.7                   Total 1-4 Family Properties 5,847,611   5,577,127 9.8   5,191,839 12.6     Land Acquisition 1,430,431 1,402,402 4.0 1,272,921 12.4                   Total Commercial Real Estate 11,483,463 11,085,745 7.2 10,590,390 8.4                   Commercial, Financial, and Agricultural 6,246,493 5,875,854 12.7 5,589,922 11.7 Owner-Occupied 4,132,559 4,080,742 2.6 4,017,147 2.9                   Total Commercial & Industrial 10,379,052 9,956,596 8.6 9,607,069 8.0     Home Equity 1,417,681 1,364,030 7.9 1,245,895 13.8 Consumer Mortgages 1,544,932 1,517,850 3.6 1,493,278 3.5 Credit Card 280,806 276,269 3.3 266,233 5.5 Other Retail Loans 483,820 500,757 (6.8 ) 511,398 (5.4 )                 Total Retail 3,727,239 3,658,906 3.8 3,516,804 6.0   Unearned Income (48,012 ) (46,695 ) 5.7 (52,299 ) (8.2 )                   Total $ 25,541,742   24,654,552 7.3 % $ 23,661,964 7.9 %   (1) Percentage change is annualized.   Synovus   CREDIT QUALITY DATA (Unaudited) (Dollars in thousands)     2007   2006         2nd Quarter Second First Fourth Third Second '07 vs. '06 Quarter   Quarter   Quarter   Quarter   Quarter   Change     Nonperforming Loans $ 180,776 138,790 96,623 94,766 88,805 103.6 % Other Real Estate 41,259 31,710 25,923 31,549 25,634 61.0 Nonperforming Assets 222,035 170,500 122,545 126,315 114,439 94.0 Allowance for Loan Losses 331,130 326,826 314,459 319,973 313,694 5.6   Net Charge-Offs - Quarter 15,978 8,148 24,190 12,111 9,528 67.7 Net Charge-Offs - YTD 24,126 8,148 60,217 36,027 23,916 0.1 Net Charge-Offs / Average Loans - Quarter 0.25 0.13 0.39 0.20 0.17 Net Charge-Offs / Average Loans - YTD 0.19 0.13 0.26 0.21 0.21   Nonperforming Loans / Loans & ORE 0.71 0.55 0.39 0.39 0.38 Nonperforming Assets / Loans & ORE 0.87 0.68 0.50 0.52 0.48 Allowance / Loans 1.30 1.30 1.28 1.32 1.33   Allowance / Nonperforming Loans 183.17 235.48 325.45 337.65 353.24 Allowance / Nonperforming Assets 149.13 191.69 256.61 253.31 274.11   Past Due Loans over 90 days 23,067 27,414 34,031 18,002 19,340 As a Percentage of Loans Outstanding 0.09 0.11 0.14 0.07 0.08   Total Past Dues 164,180 150,188 154,027 140,526 111,464 As a Percentage of Loans Outstanding 0.64 0.60 0.62 0.58 0.47                               REGULATORY CAPITAL RATIOS (1) (Unaudited) (Dollars in thousands)         June 30, 2007 December 31, 2006 June 30, 2006   Tier 1 Capital $ 3,512,469 3,254,603 3,000,714 Total Risk-Based Capital 4,593,879 4,319,062 4,064,409 Tier 1 Capital Ratio 11.22 % 10.87 10.40 Total Risk-Based Capital Ratio 14.67 14.43 14.09 Leverage Ratio 10.98 10.64 10.39   (1) June 30, 2007 information is preliminary.