Synovus Reports Earnings per Share of $0.04 for Second Quarter 2008

Synovus reports net income for the second quarter of 2008 totaling $12.1 million, or $0.04 per diluted share, compared to income from continuing operations of $105.8 million, or $0.32 per diluted share, for the second quarter of 2007. The second quarter of 2008 results include the impact of a non-cash goodwill impairment charge of $27 million or $0.08 per diluted share as discussed below. This charge has no impact on tangible equity or regulatory capital ratios since goodwill is already excluded from these measures. Shareholders’ equity as of June 30, 2008, was $3.43 billion, which represented a very strong 10.02% of quarter-end assets. Total assets ended the quarter at $34.2 billion, an increase of 7.1% when compared to total assets for continuing operations a year ago. The Tier 1 Capital Ratio was 8.91%, the Total Risk-Based Capital Ratio was 12.28%, and the Tangible Common Equity to Tangible Assets Ratio was 8.64%. The ratio of nonperforming assets to loans, impaired loans held for sale, and other real estate was 3.00%, compared to 2.49% last quarter and 0.87% in the second quarter of last year. Nonperforming loans were $627 million for the second quarter of 2008, an increase of $111 million from the first quarter of 2008. The rate of increase in nonperforming loans slowed in the second quarter (22%) as compared to the previous quarter (51%). Of the $111 million increase in nonperforming loans, 46% were in the Atlanta area. The Atlanta market represents 58% of Synovus’ total nonperforming loans in the residential construction and development portfolios. The net charge-off ratio for the quarter was 1.04% compared to 0.95% last quarter and 0.25% in the second quarter of last year. The allowance for loan losses was 1.52% of loans at June 30, 2008, compared to 1.46% at the end of last quarter and 1.30% at June 30, 2007. The provision expense for the quarter was $93.6 million, compared to $91.0 million last quarter, and $20.3 million in the second quarter last year. The provision for loan losses covered net charge-offs by 133% for the quarter. Total loans past due and still accruing as a percentage of loans outstanding improved from 1.39% last quarter to 1.33% in the second quarter. Past due loans over 90 days and still accruing as a percentage of loans outstanding improved from 0.16% last quarter to 0.14% in the second quarter. Net interest income for the second quarter was $273.4 million compared to $288.5 million in the second quarter of last year. The net interest margin for the quarter was 3.57%, compared to 3.71% last quarter and 4.00% in the second quarter of last year. Of the 14 basis point decrease in the margin from the previous quarter, 3 basis points were related to increased credit costs. Total loans grew 4.9% (annualized) on a sequential quarter basis. Commercial income producing properties grew 15.4%, commercial and industrial loans grew 6.7% and retail loans grew 16.2%, while residential construction loans declined 33.9%, and residential development loans declined 15.1% on an annualized sequential quarter basis. Total core deposits (excludes brokered deposits) grew 4.1% (annualized) on a sequential quarter basis. Non-interest income was $107.7 million for the quarter. After excluding a $9.9 million net after-tax gain on the sale of MasterCard stock, non-interest income was down 5% compared to the second quarter last year with increases in brokerage and investment banking revenue of 17.9%, bankcard fees of 22.7%, and fiduciary and asset management fees – which include trust, financial planning, and asset management fees of 1.9%, while mortgage banking income and service charges on deposit accounts were down 26.1% and 7.1%, respectively. Non-interest expenses of $266.0 million were up $68.3 million compared to the second quarter last year. The increase includes the $27 million estimated goodwill impairment charge, $23 million in impaired loans held for sale and other real estate costs, a $4 million provision for unfunded lending commitments, and the $2.4 million civil money penalty that was paid to the FDIC in connection with the settlement agreement related to the credit card programs offered pursuant to our affinity agreement with CompuCredit Corporation. During the second quarter of 2008, Synovus conducted its annual goodwill impairment testing. The evaluation resulted in an estimated goodwill impairment charge of $27 million (pre-tax and after-tax) on one of our reporting units. The charge has been recorded as a component of non-interest expense for the second quarter of 2008. The impairment charge is an estimate that will be finalized upon completion of the goodwill impairment testing. The driver of impairment is the decrease in market-based trading and transaction multiples. Synovus will host an earnings highlights conference call at 4:30 pm EDT, on July 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 $34 billion in assets based in Columbus, Georgia. Synovus provides commercial and retail banking, as well as investment services, to customers through 35 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 and certain of our other filings with the Securities and Exchange Commission 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, our estimated goodwill impairment charge and the assumptions underlying this estimate. 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 and our filings with the Securities and Exchange Commission. 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 and our filings with the Securities and Exchange Commission include: (1) deteriorating credit quality, particularly in residential construction and development loans, may result in increased delinquencies and credit losses, which will adversely impact us; (2) declining values of residential real estate which may increase our credit losses and negatively affect our financial results; (3) continuing deteriorations in general economic conditions and conditions in the financial markets; (4) inadequacy of our allowance for loan losses, or the risk that the allowance may prove to be inadequate or may be negatively affected by credit risk exposures; (5) changes in the interest rate environment which expand or reduce interest margins, impact funding sources or adversely affect critical estimates as applied, and fair value of assets; (6) slower than anticipated rates of growth in non-interest income; (7) impact of proposed changes in the regulation of banks and financial institutions; (8) restrictions or limitations on access to funds from subsidiaries, thereby restricting our ability to make payments on our obligations or dividend payments; (9) risks associated with litigation; (10) inability to access the capital markets on terms that are satisfactory; (11) the volatility of our stock price; and (12) and the other factors set forth 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 Six Months Ended (Unaudited) (In thousands) June 30,               2008 2007 Change               Interest income (taxable equivalent) $ 964,331 1,115,020 (13.5 ) % Interest expense 409,950 540,967 (24.2 )         Net interest income (taxable equivalent) 554,381 574,053 (3.4 ) Tax equivalent adjustment 2,311 2,629 (12.1 )         Net interest income 552,070 571,424 (3.4 ) Provision for loan losses 184,665 40,797 352.6         Net interest income after provision 367,405 530,627 (30.8 )         Non-interest income: Service charges on deposit accounts 54,461 54,420 0.1 Fiduciary and asset management fees 25,519 25,129 1.6 Brokerage and investment banking revenue 17,693 15,259 16.0 Mortgage banking income 13,847 14,920 (7.2 ) Bankcard fees 26,417 23,447 12.7 Net gains on sales of available for sale investment securities - 705 nm Other fee income 21,266 19,838 7.2 Proceeds from Visa IPO 38,542 - nm Other non-interest income 49,930 30,116 65.8         Total non-interest income 247,675   183,834 34.7         Non-interest expense: Salaries and other personnel expense 232,614 229,749 1.2 Net occupancy and equipment expense 61,340 54,860 11.8 FDIC insurance and other regulatory fees 12,250 4,698 160.7 Impaired loans held for sale and other real estate costs 31,502 1,150 nm Visa litigation expense (17,430 ) - nm Goodwill impairment 27,000 - nm Professional fees 16,697 10,245 63.0 Other operating expense 103,365   91,755 12.7       Total non-interest expense 467,338 392,457 19.1           Minority interest in consolidated subsidiaries 1,697 - nm Income from continuing operations before income taxes 146,045 322,004 (54.6 ) Income tax expense 52,952   115,789 (54.3 )     Income from continuing operations 93,093 206,215 (54.9 )   Income from discontinued operations, net of income taxes and minority interest (1) -   103,287 nm   Net income $ 93,093   309,502 (69.9 )       Basic earnings per share Income from continuing operations $ 0.28 0.63 (55.3 ) % Net income 0.28 0.95 (70.2 )   Diluted earnings per share Income from continuing operations 0.28 0.63 (55.0 ) Net income 0.28 0.94 (70.0 )   Cash dividends declared per share 0.17 0.21 (17.1 )   Return on average assets from continuing operations(a) 0.56 2.67 (211 ) bp Return on average assets (a) 0.56 3.84 (328 ) Return on average equity from continuing operations(a) 5.41 21.64 (1,623 ) Return on average equity (a) 5.41 32.47 (2,706 )     Average shares outstanding - basic 329,071 326,051 0.9 % Average shares outstanding - diluted 331,568 329,920 0.5   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 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 six 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         INCOME STATEMENT DATA (Unaudited) (In thousands, except per share data) 2008   2007   2nd Quarter Second First Fourth Third Second '08 vs. '07 Change     Quarter   Quarter   Quarter   Quarter   Quarter   Interest income (taxable equivalent) $ 459,273 505,057 554,989 573,545 565,777 (18.8 ) % Interest expense 184,718 225,232   267,102 281,478 276,017 (33.1 ) Net interest income (taxable equivalent) 274,555 279,825 287,887 292,067 289,760 (5.2 ) Tax equivalent adjustment 1,134 1,176   1,202 1,228 1,285 (11.8 ) Net interest income 273,421 278,649 286,685 290,839 288,475 (5.2 ) Provision for loan losses 93,616 91,049   70,642 58,770 20,281 361.6   Net interest income after provision 179,805 187,600   216,043 232,069 268,194 (33.0 ) Non-interest income: Service charges on deposit accounts 26,070 28,391 28,985 28,736 28,050 (7.1 ) Fiduciary and asset management fees 12,898 12,621 13,110 12,524 12,657 1.9 Brokerage and investment banking revenue 9,206 8,487 8,598 8,123 7,809 17.9 Mortgage banking income 5,686 8,161 6,130 5,955 7,695 (26.1 ) Bankcard fees 14,198 12,218 12,400 11,923 11,567 22.7 Net gains on sales of available for sale investment securities - - 90 186 258 nm Other fee income 10,081 11,185 9,559 9,910 10,411 (3.2 ) Other non-interest income 29,559 20,370 20,126 28,837 17,883 65.3 Proceeds from Visa IPO - 38,542   - - - nm Total non-interest income 107,698 139,975   98,998 106,194 96,330 11.8   Non-interest expense: Salaries and other personnel expense 110,483 122,130 109,468 115,941 115,822 (4.6 ) Net occupancy and equipment expense 31,130 30,211 29,976 28,055 27,572 12.9 FDIC insurance and other regulatory fees 6,172 6,079 3,108 2,541 2,315 166.6 Impaired loans held for sale and other real estate costs 23,621 7,881 12,924 1,662 577 nm Visa litigation expense - (17,430 ) 24,800 12,000 - nm Goodwill impairment 27,000 - - - - nm Professional fees 11,756 4,940 6,307 4,703 4,743 147.9 Other operating expense 55,802 47,563   48,626 47,523 46,631 19.7   Total non-interest expense 265,964 201,374   235,209 212,425 197,660 34.6   Minority interest in consolidated subsidiaries 138 1,559 - - - nm Income from continuing operations before income taxes 21,401 124,642 79,832 125,838 166,864 (87.2 ) Income tax expense 9,302 43,648   26,690 42,261 61,055 (84.8 ) Income from continuing operations 12,099 80,994 53,142 83,577 105,809 (88.6 ) Income from discontinued operations, net of income taxes and minority interest (1) - -   28,717 51,366 56,941 nm Net income $ 12,099 80,994   81,859 134,943 162,750 (92.6 ) Basic earnings per share Income from continuing operations $ 0.04 0.25 0.16 0.26 0.32 (88.7 ) % Net income 0.04 0.25 0.25 0.41 0.50 (92.6 ) Diluted earnings per share Income from continuing operations 0.04 0.24 0.16 0.25 0.32 (88.6 ) Net income 0.04 0.24 0.25 0.41 0.49 (92.6 ) Cash dividends declared per share 0.17 0.17 0.21 0.21 0.21 (17.1 ) Return on average assets from continuing operations (a) 0.14 % 0.99 % 0.65 1.05 1.35 (121 ) bp Return on average assets (a) 0.14 0.99 1.01 1.66 1.97 (183 ) Return on average equity from continuing operations(a) 1.40 9.43 5.17 8.25 10.85 (945 ) Return on average equity (a) 1.40 9.43 7.97 13.32 16.69 (1,529 ) Average shares outstanding - basic 329,173 328,970 328,052 327,215 326,410 0.8 % Average shares outstanding - diluted 331,418 331,719 329,453 330,160 330,263 0.3 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 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 June 30, 2008 December 31,2007 June 30, 2007   (Unaudited) (In thousands, except share data)   ASSETS Cash and due from banks $ 674,834 682,583 695,008 Interest earning deposits with banks 17,337 10,950 5,157 Federal funds sold and securities purchased under resale agreements 152,177 76,086 241,685 Trading account assets 20,204 17,803 70,625 Mortgage loans held for sale 185,245 153,437 190,587 Impaired loans held for sale 6,365 - - Investment securities available for sale 3,814,384 3,666,974 3,558,813   Loans, net of unearned income 27,445,891 26,498,585 25,541,742 Allowance for loan losses (417,813 ) (367,613 ) (331,130 ) Loans, net 27,028,078   26,130,972   25,210,612       Premises and equipment, net 581,352 547,437 512,142 Goodwill 492,138 519,138 519,138 Other intangible assets, net 24,860 28,007 31,283 Other assets 1,230,327 1,185,065 931,814 Assets of discontinued operations -   -   1,386,514     Total assets $ 34,227,301   33,018,452   33,353,378       LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits: Non-interest bearing retail and commercial deposits $ 3,553,342 3,472,423 3,638,434 Interest bearing retail and commercial deposits 17,887,708   17,734,851   17,949,351     Total retail and commercial deposits 21,441,050 21,207,274 21,587,785 Brokered deposits 4,587,302   3,752,542   3,713,936     Total deposits 26,028,352 24,959,816 25,301,721   Federal funds purchased and other short-term liabilities 2,287,910 2,319,412 1,788,955 Long-term debt 2,121,625 1,890,235 1,657,483 Other liabilities 336,701 407,399 394,228 Liabilities of and minority interest in discontinued operations (1) -   -   285,667       Total liabilities 30,774,588   29,576,862   29,428,054       Minority interest in consolidated subsidiaries 24,092 - -   Shareholders' equity: Common stock, par value $1.00 a share (2) 335,826 335,529 333,078 Additional paid-in capital 1,110,644 1,101,209 1,091,517 Treasury stock (3) (114,075 ) (113,944 ) (113,944 ) Accumulated other comprehensive income (loss) 30,190 31,439 (20,929 ) Retained earnings 2,066,036   2,087,357   2,635,602   Total shareholders' equity 3,428,621   3,441,590   3,925,324       Total liabilities and shareholders' equity $ 34,227,301   33,018,452   33,353,378         (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: 330,153,646; 329,867,944 and 327,416,936 at June 30, 2008, December 31, 2007, and June 30, 2007, respectively. (3) Treasury shares: 5,672,221 at June 30, 2008; 5,661,538 at December 31, 2007 and June 30, 2007. Synovus AVERAGE BALANCES AND YIELDS/RATES (a) (Unaudited) (Dollars in thousands)   2008   2007   Second First Fourth Third Second Quarter   Quarter Quarter Quarter Quarter Interest Earning Assets Taxable Investment Securities $ 3,556,381 3,485,370 3,496,843 3,495,017 3,420,831 Yield 5.00 % 5.01 4.90 4.82 4.83 Tax-Exempt Investment Securities $ 137,606 154,408 164,587 170,211 178,183 Yield (taxable equivalent) 7.34 % 7.00 6.82 6.72 6.75 Trading Account Assets $ 26,531 36,652 29,698 56,217 59,311 Yield 5.88 % 6.96 7.05 7.15 6.47 Commercial Loans $ 23,183,128 22,763,954 22,157,460 21,820,687 21,739,107 Yield 5.96 % 6.79 7.69 8.13 8.20 Consumer Loans $ 966,111 931,644 928,942 915,847 896,267 Yield 7.53 % 7.86 8.05 8.17 8.14 Mortgage Loans $ 1,252,275 1,241,018 1,237,962 1,152,621 1,110,754 Yield 6.54 % 6.84 7.04 7.10 7.03 Credit Card Loans $ 291,143 296,428 285,410 277,445 275,105 Yield 8.60 % 9.65 10.26 10.96 10.64 Home Equity Loans $ 1,605,601 1,557,852 1,517,510 1,444,411 1,407,005 Yield 5.31 % 6.48 7.34 7.80 7.82 Allowance for Loan Losses $ (397,392 )   (381,695 ) (357,283 ) (335,406 ) (329,028 ) Loans, Net $ 26,900,866 26,409,201 25,770,001 25,275,605 25,099,210 Yield 6.12 % 6.94 7.79 8.21 8.26 Mortgage Loans Held for Sale $ 157,049 121,806 108,044 176,448 163,364 Yield 5.86 % 5.57 6.12 6.91 6.18 Federal Funds Sold and Other Short-Term Investments $ 201,081 128,381 110,745 85,094 131,029 Yield   1.83   % 3.41   4.63   5.76   5.37 Total Interest Earning Assets $ 30,979,514 30,335,818 29,679,918 29,258,592 29,051,928   Yield   5.96   % 6.69   7.42   7.78   7.81   Interest Bearing Liabilities Interest Bearing Demand Deposits $ 3,154,884 3,200,650 3,200,408 3,047,279 3,141,899 Rate 1.10 % 1.56 1.99 2.24 2.28 Money Market Accounts $ 6,826,724 7,017,644 7,502,063 7,421,900 7,217,265 Rate 2.15 % 2.98 3.92 4.40 4.46 Savings Deposits $ 461,970 448,581 454,204 479,479 497,422 Rate 0.25 % 0.28 0.35 0.48 0.57 Time Deposits Under $100,000 $ 2,814,714 2,777,764 2,790,869 2,917,089 3,020,881 Rate 3.97 % 4.44 4.69 4.81 4.85 Time Deposits Over $100,000 (less brokered time deposits) $ 4,316,454 4,171,716 4,006,350 4,029,091 4,118,221 Rate 4.09   % 4.69   4.98   5.12   5.19   Total Interest Bearing Core Deposits $ 17,574,746 17,616,355 17,953,894 17,894,838 17,995,688 Rate 2.68 % 3.29 3.84 4.16 4.20 Brokered Money Market Accounts $ 1,082,805 854,385 467,346 476,377 426,988 Rate 2.54 % 3.50 4.89 5.34 5.45 Brokered Time Deposits $ 3,495,947 3,300,677 2,941,592 3,188,310 3,175,161 Rate 3.64   % 4.35   4.98   5.19   5.05   Total Interest Bearing Deposits $ 22,153,498 21,771,417 21,362,832 21,559,525 21,597,837 Rate 2.82 % 3.46 4.02 4.33 4.35 Federal Funds Purchased and Other Short-Term Liabilities $ 2,302,986 2,253,640 2,472,339 1,930,598 1,720,535 Rate 2.03 % 3.18 4.37 4.84 4.96 Long-Term Debt $ 2,048,213 1,930,412 1,819,198 1,660,788 1,552,310 Rate   3.44   % 4.21   5.08   5.32   5.18 Total Interest Bearing Liabilities $ 26,504,697 25,955,469 25,654,369 25,150,911 24,870,682 Rate   2.80   % 3.48   4.12   4.43   4.44 Non-Interest Bearing Demand Deposits $ 3,448,794     3,338,106   3,422,684   3,405,622   3,428,246 Net Interest Margin   3.57   % 3.71   3.86   3.97   4.00   (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 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)     June 30, 2008                         Loans as a % of Total Loans Outstanding Total Nonperforming Loans Nonperforming Loans as a % of Total Nonperforming Loans   Loan Type Total Loans                       Multi-Family $ 527,881 1.9 % $ 1,552 0.2 % Hotels 756,492 2.8 766 0.1 Office Buildings 966,171 3.5 3,119 0.5 Shopping Centers 965,130 3.6 1,031 0.2 Commercial Development 909,965 3.3 12,573 2.0 Other Investment Property 873,902 3.2 - -           Total Investment Properties 4,999,541 18.3 19,041 3.0           1-4 Family Construction 1,971,819 7.2 220,194 35.1 1-4 Family Perm / Mini-Perm 1,350,463 4.9 32,661 5.2 Residential Development 2,227,709 8.1 154,776 24.7           Total 1-4 Family Properties 5,549,991 20.2 407,631 65.0           Land Acquisition 1,569,618 5.7 75,623 12.1           Total Commercial Real Estate 12,119,150 44.2 502,295 80.1           Commercial , Financial, and Agricultural 6,788,276 24.7 70,608 11.3 Owner-Occupied 4,367,743 15.9 32,345 5.2           Total Commercial & Industrial 11,156,019 40.6 102,953 16.5   Home Equity 1,632,551 5.9 6,771 1.1 Consumer Mortgages 1,723,689 6.3 12,486 2.0 Credit Card 299,850 1.1 - - Other Retail Loans 555,507 2.0 2,066 0.3           Total Retail 4,211,597 15.3 21,323 3.4   Unearned Income (40,875 ) (0.1 ) - -           Total $ 27,445,891   100.0   % $ 626,571   100.0   %                                   LOANS OUTSTANDING BY TYPE COMPARISON (Unaudited) (Dollars in thousands)                                 Total Loans December 31, 2007 2Q08 vs. 4Q07 % change (1) 2Q08 vs. 2Q07 % change Loan Type June 30, 2008 June 30, 2007                             Multi-Family $ 527,881 452,163 33.7 % $ 489,453 7.9 % Hotels 756,492 614,979 46.3 581,376 30.1 Office Buildings 966,171 953,093 2.8 856,999 12.7 Shopping Centers 965,130 834,025 31.6 712,210 35.5 Commercial Development 909,965 961,271 (10.7 ) 919,965 (1.1 ) Other Investment Property 873,902 714,296 44.9 687,683 27.1             Total Investment Properties 4,999,541 4,529,827 20.9 4,247,686 17.7             1-4 Family Construction 1,971,819 2,238,925 (24.0 ) 2,382,147 (17.2 ) 1-4 Family Perm / Mini-Perm 1,350,463 1,273,843 12.1 1,167,658 15.7 Residential Development 2,227,709 2,311,459 (7.3 ) 2,297,807 (3.1 )             Total 1-4 Family Properties 5,549,991   5,824,227   (9.5 ) 5,847,612   (5.1 )   Land Acquisition 1,569,618 1,545,933 3.1 1,430,431 9.7             Total Commercial Real Estate 12,119,150 11,899,987 3.7 11,525,729 5.1             Commercial , Financial, and Agricultural 6,788,276 6,420,689 11.5 6,240,987 8.8 Owner-Occupied 4,367,743 4,226,707 6.7 4,095,800 6.6             Total Commercial & Industrial 11,156,019 10,647,396 9.6 10,336,787 7.9     Home Equity 1,632,551 1,543,701 11.6 1,417,681 15.2 Consumer Mortgages 1,723,689 1,667,924 6.7 1,544,932 11.6 Credit Card 299,850 291,149 6.0 280,805 6.8 Other Retail Loans 555,507 494,591 24.8 483,820 14.8           Total Retail 4,211,597 3,997,365 10.8 3,727,238 13.0   Unearned Income (40,875 ) (46,163 ) (23.0 ) (48,012 ) (14.9 )             Total $ 27,445,891   26,498,585   7.2   % $ 25,541,742   7.5   %   (1) Percentage change is annualized. Synovus           CREDIT QUALITY DATA (Unaudited) (Dollars in thousands) 2008 2007 2nd Quarter                       Second First Fourth Third Second '08 vs. '07 Quarter   Quarter   Quarter   Quarter   Quarter Change   Nonperforming Loans (1) $ 626,571 515,302 342,082 224,055 180,776 246.6 % Impaired Loans Held for Sale (2) 6,365 42,270 - - - NM Other Real Estate 197,328 121,753 101,487 76,514 41,259 378.3 Nonperforming Assets 830,264 679,325 443,569 300,569 222,035 273.9   Allowance for Loan Losses 417,813 394,848 367,613 356,887 331,130 26.2   Net Charge-Offs - Quarter 70,652 63,813 59,916 33,013 15,978 342.2 Net Charge-Offs - YTD 134,465 63,813 117,055 57,139 24,126 457.3 Net Charge-Offs / Average Loans - Quarter (3) 1.04 % 0.95   0.91   0.51 0.25 Net Charge-Offs / Average Loans - YTD (3) 0.99 0.95 0.46 0.30 0.19   Nonperforming Loans / Loans 2.29 1.90 1.29 0.87 0.71 Nonperforming Assets / Loans, Impaired Loans Held for Sale & ORE 3.00 2.49 1.67 1.16 0.87 Allowance / Loans 1.52 1.46 1.39 1.38 1.30   Allowance / Nonperforming Loans 66.68 76.62 107.46 159.29 183.17 Allowance / Nonperforming Loans (excluding impaired loans for which there is no related allowance for loan losses (4)) 206.82 220.89 337.49 334.42 417.79   Past Due Loans over 90 days and still accruing 39,614 43,009 33,663 22,667 23,067 71.7 % As a Percentage of Loans Outstanding 0.14 0.16 0.13 0.09 0.09   Total Past Dues Loans and still accruing 365,046 377,999 270,496 230,035 164,180 122.3 As a Percentage of Loans Outstanding 1.33 1.39 1.02 0.89 0.64     (1) Includes $424.5 million, $336.5 million, $233.2 million, $117.3 million, and $101.5 million at June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, and June 30, 2007, respectively, of loans considered to be impaired (consisting of collateral dependent loans) for which there is no related allowance for loan losses determined in accordance with SFAS No. 114, "Accounting by Creditors for Impairment of a Loan." The allowance on these loans is zero because the estimated losses on collateral dependent impaired loans have been charged-off, at the time these loans were considered to be impaired. (2) Represent impaired loans that are intended to be sold. Held for sale loans are carried at the lower of cost or fair value. (3) Ratio is annualized. (4) Impaired loans for which there is no related allowance for loan losses as described in note (1).   SELECTED CAPITAL INFORMATION (1) (Unaudited) (Dollars in thousands)       June 30, 2008 December 31, 2007 June 30, 2007   Tier 1 Capital $ 2,891,861 2,870,558 3,514,214 Total Risk-Based Capital 3,987,836 3,988,171 4,595,344 Tier 1 Capital Ratio 8.91 % 9.11 11.22 Total Risk-Based Capital Ratio 12.28 12.66 14.68 Leverage Ratio 8.69 8.65 10.99 Equity as a Percentage of Total Assets 10.02 10.42 11.77 Tangible equity as a percentage of tangible assets (2) 8.64 8.91 10.29 Book value per share 10.38 10.43 11.99 Tangible book value per share (2) 8.82 8.78 10.31   (1) Current quarter regulatory capital information is preliminary. (2) Excludes the carrying value of goodwill and other intangible assets from shareholders' equity and total assets.