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Synovus Reports Earnings of $713 Million for Fourth Quarter of 2012



  Synovus Reports Earnings of $713 Million for Fourth Quarter of 2012

   Distressed Asset Sales Drive Acceleration of Credit Quality Improvement

                 Results Reflect Deferred Tax Asset Recapture

Business Wire

COLUMBUS, Ga. -- January 22, 2013

Synovus Financial Corp. (NYSE: SNV) today reported financial results for the
quarter ended December 31, 2012.

                            Fourth Quarter Results

  * Net income available to common shareholders was $712.8 million for the
    fourth quarter of 2012, compared to net income available to common
    shareholders of $16.0 million for the third quarter of 2012 and $12.8
    million for the fourth quarter of 2011. Net income available to common
    shareholders was $775.0 million for the year ended December 31, 2012,
    compared to a net loss attributable to common shareholders of $118.7
    million for the year ended December 31, 2011.
  * Diluted net income per common share for the fourth quarter of 2012 was
    $0.78, compared to diluted net income per common share of $0.02 for the
    third quarter of 2012 and $0.01 for the fourth quarter of 2011. Diluted
    net income per common share for the year ended December 31, 2012 was
    $0.85, compared to a net loss per common share of $0.15 for the year ended
    December 31, 2011.
  * The fourth quarter results include an income tax benefit of approximately
    $800 million from the recapture of substantially all of the deferred tax
    asset valuation allowance. The recapture of the deferred tax asset drove
    the $0.89 increase in tangible book value per share during the quarter to
    $2.96.
  * The fourth quarter results also reflect the successful completion of
    distressed asset sales of approximately $545 million, including the
    execution of a bulk sale effective December 10, 2012. The fourth quarter
    distressed asset dispositions resulted in a pre-tax charge of
    approximately $157 million.

“Our fourth quarter performance represents another huge step forward for our
company,” said Kessel D. Stelling, Chairman and CEO of Synovus. “The recapture
of the deferred tax asset is a significant milestone that reflects years of
progress and further demonstrates our company’s return to a position of
strength. Additionally, the successful execution of the bulk sale during the
fourth quarter accelerates credit quality improvement and also enhances our
future financial performance.”

Core Performance

Pre-tax, pre-credit costs income was $108.0 million for the fourth quarter of
2012, down $3.5 million from $111.5 million for the third quarter of 2012.

  * Net interest income was $207.5 million for the fourth quarter of 2012,
    down $4.9 million from $212.3 million in the previous quarter.
  * The net interest margin was 3.45%, down six basis points from the third
    quarter of 2012, due to a decline in the yield on earning assets of ten
    basis points partially offset by the decline in the effective cost of
    funds of four basis points.
  * Total non-interest income was $80.1 million for the fourth quarter of
    2012, up $6.9 million, compared to $73.2 million in the third quarter of
    2012.
  * Non-interest income, excluding net investment securities gains, was up
    $5.3 million from the previous quarter.

       * Financial Management Services revenue, which includes fiduciary and
         asset management fees, brokerage revenue, and insurance revenue, was
         up $1.0 million from the third quarter of 2012.
       * Service charges on deposit accounts were up $0.5 million from the
         previous quarter.

  * Total reported non-interest expense was $213.3 million for the fourth
    quarter of 2012 compared to $191.5 million for the previous quarter.
  * Core expenses (excludes Visa indemnification charges, restructuring
    charges and other credit costs) were up $4.0 million from the third
    quarter of 2012.

       * Salaries and other personnel expenses increased $1.7 million from the
         previous quarter, due primarily to incentive compensation expenses.
       * Professional fees were $2.0 million higher than the previous quarter.

“We have made substantial progress in aligning our operating costs with the
current size of our organization,” said Stelling. “Core expenses decreased by
$25.1 million and $95.3 million in 2012 and 2011, respectively, reflecting the
impact of the efficiency initiatives implemented during those two years. We
have identified new expense savings initiatives of approximately $30 million,
with the implementation of these initiatives already underway and continuing
throughout 2013. We remain keenly focused on improving efficiency while we
also strategically invest in talent and infrastructure that drive growth and
improve our customers’ experience.”

Balance Sheet Fundamentals

  * Total reported loans declined by $190.2 million during the fourth quarter
    driven by distressed loan sales of approximately $475 million.
  * On a sequential quarter basis, net loan growth was approximately $345
    million for the fourth quarter, compared to approximately $240 million
    during the third quarter of 2012 and approximately $167 million during the
    fourth quarter of 2011. Net loan growth excludes the impact of loan sales,
    transfers to loans held-for-sale, charge-offs, and foreclosures.
  * Loans outstanding from the Corporate Banking Group were up approximately
    $205 million compared to the previous quarter and up approximately $583
    million over the previous year.
  * Total deposits ended the quarter at $21.1 billion, up $210.2 million from
    the previous quarter due primarily to increases in NOW account balances
    and non-interest bearing demand deposits.
  * Core deposits ended the quarter at $20.0 billion, up $37.4 million
    compared to the third quarter of 2012. Core deposits, excluding time
    deposits, increased $225.2 million compared to the previous quarter.
  * The effective cost of core deposits (includes non-interest bearing
    deposits) continued to decline, with an effective cost of 30 basis points
    for the fourth quarter of 2012, down from 34 basis points for the previous
    quarter and 53 basis points for the fourth quarter of 2011.

Credit Trends

  * Distressed asset sales were approximately $545 million during the fourth
    quarter, compared to approximately $110 million in the third quarter of
    2012, and approximately $147 million in the fourth quarter of 2011.
  * Non-performing loan inflows were $262.7 million in the fourth quarter of
    2012, up from $114.8 million in the third quarter of 2012 and $189.2
    million in the fourth quarter of 2011. Inflows increased during the fourth
    quarter of 2012 due to the addition of one larger credit relationship to
    non-performing status. Substantially all of this relationship was
    previously classified as substandard accruing, and therefore had minimal
    impact on classified assets during the quarter.
  * Non-performing loans, excluding loans held for sale, were $543.3 million
    at December 31, 2012, down $156.9 million from the previous quarter, and
    down $339.7 million or 38.5% from the fourth quarter of 2011. The
    non-performing loan ratio was 2.78% at December 31, 2012, down from 3.55%
    at the end of the previous quarter and 4.40% at December 31, 2011.
  * Total non-performing assets were $703.1 million at December 31, 2012, down
    $196.3 million from the previous quarter, and down $414.3 million or 37.1%
    from the fourth quarter of 2011. The non-performing asset ratio was 3.57%
    at December 31, 2012, compared to 4.51% at the end of the previous quarter
    and 5.50% at December 31, 2011.
  * Synovus Bank’s classified assets, as a percentage of Tier 1 capital and
    the allowance for loan losses, declined to 38.0% at December 31, 2012,
    down from 50.7% at September 30, 2012 and 62.5% at December 31, 2011.
    Synovus Financial Corp.’s classified asset ratio was 44.8% at December 31,
    2012.
  * Total delinquencies (consisting of loans 30 or more days past due and
    still accruing) were 0.54% of total loans at December 31, 2012, compared
    to 0.55% at September 30, 2012, and 0.74% at December 31, 2011. Total
    loans past due 90 days or more and still accruing were 0.03% at December
    31, 2012, compared to 0.05% at September 30, 2012, and 0.07% at December
    31, 2011.
  * Total credit costs were $185.8 million in the fourth quarter of 2012, up
    from $85.6 million in the third quarter of 2012 and $90.5 million in the
    fourth quarter of 2011, primarily due to the distressed asset sales in the
    fourth quarter of 2012.
  * Net charge-offs were $193.5 million in the fourth quarter of 2012, up from
    $96.5 million in the third quarter of 2012 and $113.5 million in the
    fourth quarter of 2011, due to the higher level of distressed asset sales
    during the fourth quarter. The annualized net charge-off ratio was 3.94%
    in the fourth quarter, up from 1.97% in the previous quarter and 2.26% in
    the fourth quarter of 2011.

Capital Ratios

  * Tangible Common Equity/Tangible Assets ratio was 9.67% at December 31,
    2012 compared to 7.35% at September 30, 2012.
  * Tier 1 Common Equity ratio was 8.72% at December 31, 2012 compared to
    8.73% at September 30, 2012.
  * Tier 1 Capital ratio was 13.24% at December 31, 2012 compared to 13.23% at
    September 30, 2012.
  * Tier 1 Leverage ratio was 11.00% at December 31, 2012 compared to 10.97%
    at September 30, 2012.
  * Total Risk Based Capital ratio was 16.18% at December 31, 2012 compared to
    16.16% at September 30, 2012.

Stelling concluded, “While we are certainly mindful of the continued headwinds
facing our entire industry, including slow growth as well as economic and
political uncertainty, we are encouraged by our momentum heading into 2013.
Our deferred tax asset recapture and a successful bulk sale are behind us, and
we expect to repay TARP by the end of this year. Our customers remain our
primary focus, and the efforts of our dedicated bankers, along with our
relationship style of banking, continue to drive improved performance across
our footprint, as evidenced by net loan growth of $345.4 million for the
fourth quarter and $588.8 million for the year. We also saw positive growth
trends in mortgage and investment services during 2012, and our Family Asset
Management team was recently recognized by Bloomberg Markets Magazine as one
of the ‘Top 50 Family Offices’ in the world. This has been a transformational
year for our company, and I want to thank all of our team members for their
loyalty, perseverance, and intense passion for serving our customers and
communities. I also want to thank our customers for their continued trust and
confidence in us. We look forward to earning the right to be their bank for
many years to come.”

Synovus will host an earnings highlights conference call at 8:30 a.m. EST on
January 22, 2013. The earnings call will be accompanied by a slide
presentation. Shareholders and other interested parties can access the slide
presentation and listen to the conference call via simultaneous Internet
broadcast at www.synovus.com by clicking on the “Live Webcast” icon.
RealPlayer or Windows Media Player can be downloaded 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.

About Synovus

Synovus Financial Corp. is a financial services company with approximately $27
billion in assets based in Columbus, Georgia. Synovus Financial Corp. provides
commercial and retail banking, investment and mortgage services to customers
in Georgia, Alabama, South Carolina, Florida and Tennessee. See Synovus
Financial Corp. on the web at www.synovus.com.

Forward-Looking Statements

This press release and certain of our other filings with the Securities and
Exchange Commission contain statements that constitute “forward-looking
statements” within the meaning of, and subject to the protections of,
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements other than
statements of historical fact are forward-looking statements. You can identify
these forward-looking statements through Synovus’ use of words such as
“believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,”
“predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,”
“plans,” “potential” and other similar words and expressions of the future or
otherwise regarding the outlook for Synovus’ future business and financial
performance and/or the performance of the commercial banking industry and
economy in general. These forward-looking statements include, among others,
our expectations on credit trends and key credit metrics (including classified
assets and NPL inflows), deposits, loan growth and our loan portfolio;
expectations on growth and future profitability; expectations regarding the
deferred tax asset, including realization of the net deferred tax asset and on
our ability to include all of the deferred tax asset in future regulatory
capital; our expectations regarding repayment of our obligations under TARP;
expectations regarding the impact of our ongoing efficiency initiatives and
future cost savings; and the assumptions underlying our expectations.
Prospective investors are cautioned that any such forward-looking statements
are not guarantees of future performance and involve known and unknown risks
and uncertainties which may cause the actual results, performance or
achievements of Synovus to be materially different from the future results,
performance or achievements expressed or implied by such forward-looking
statements. Forward-looking statements are based on the information known to,
and current beliefs and expectations of, Synovus’ management and are subject
to significant risks and uncertainties. Actual results may differ materially
from those contemplated by such forward-looking statements. A number of
factors could cause actual results to differ materially from those
contemplated by the forward-looking statements in this report. Many of these
factors are beyond Synovus’ ability to control or predict.

These forward-looking statements are based upon information presently known to
Synovus’ management and are inherently subjective, uncertain and subject to
change due to any number of risks and uncertainties, including, without
limitation, the risks and other factors set forth in Synovus’ filings with the
Securities and Exchange Commission, including its Annual Report on Form 10-K
for the year ended December 31, 2011 under the captions “Cautionary Notice
Regarding Forward-Looking Statements” and “Risk Factors” and in Synovus’
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 and speak only as of the date that they are made. We do
not assume any obligation to update any forward-looking statements as a result
of new information, future developments or otherwise, except as otherwise may
be required by law.

Use of Non-GAAP Financial Measures

The measures entitled core deposits, core deposits excluding time deposits,
Tier 1 common equity ratio, tangible common equity to tangible assets ratio,
tangible book value per common share, pre-tax, pre-credit costs income, core
expenses, non-interest income excluding investment securities gains, net and
net sequential quarter loan growth (decline) are not measures recognized under
U.S. generally accepted accounting principles (GAAP) and therefore are
considered non-GAAP financial measures. The most comparable GAAP measures are
total deposits, total shareholders’ equity to total assets ratio, book value
per common share, income (loss) before income taxes, total non-interest
expense, total non-interest income, and sequential quarter total loan growth
(decline), respectively.

Synovus believes that these non-GAAP financial measures provide meaningful
additional information about Synovus to assist management and investors in
evaluating Synovus’ capital strength and the performance of its core business.
These non-GAAP financial measures should not be considered as substitutes for
total deposits, total shareholders’ equity to total assets ratio, book value
per common share, (loss) income before income taxes, total non-interest
expense, total non-interest income, or sequential quarter total loan growth
(decline) determined in accordance with GAAP and may not be comparable to
other similarly titled measures at other companies.

The computations of core deposits, core deposits excluding time deposits, Tier
1 common equity ratio, tangible common equity to tangible assets ratio,
tangible book value per common share, pre-tax, pre-credit costs income, core
expenses, non-interest income excluding investment gains, net and net
sequential quarter loan growth (decline) and the reconciliation of these
measures to total deposits, total shareholders’ equity to total assets ratio,
book value per common share, (loss) income before income taxes, total
non-interest expense, total non-interest income, and sequential quarter total
loan growth (decline) are set forth in the tables below.

 
Reconciliation of Non-GAAP Financial Measures
(dollars in             4Q12                3Q12           2Q12           1Q12           4Q11
thousands)
Core deposits
Core deposits excluding time deposits
Total deposits          $ 21,057,044        20,846,830     21,565,065     22,137,702     22,411,752
Subtract: Brokered        (1,092,749 )      (919,959   )   (1,148,892 )   (1,406,709 )   (1,783,174 )
deposits
Core deposits             19,964,295        19,926,871     20,416,173     20,730,993     20,628,578
Subtract: Time            (3,583,305 )      (3,771,117 )   (4,097,834 )   (4,302,292 )   (4,591,164 )
deposits
Core deposits
excluding time          $ 16,380,990        16,155,754     16,318,339     16,428,701     16,037,414  
deposits
                                                                                          
Tangible common equity to tangible assets ratio
Tangible book value per common share
Total assets            $ 26,763,468        25,764,644     26,294,110     27,064,792     27,162,845
Subtract: Goodwill        (24,431    )      (24,431    )   (24,431    )   (24,431    )   (24,431    )
Subtract: Other
intangible assets,        (5,149     )      (5,895     )   (6,693     )   (7,589     )   (8,525     )
net
Tangible assets         $ 26,733,888        25,734,318     26,262,986     27,032,772     27,129,889  
                                                                                          
Total shareholders’     $ 3,572,887         2,875,700      2,853,389      2,821,763      2,827,452
equity
Subtract: Goodwill        (24,431    )      (24,431    )   (24,431    )   (24,431    )   (24,431    )
Subtract: Other
intangible assets,        (5,149     )      (5,895     )   (6,693     )   (7,589     )   (8,525     )
net
Subtract: Series A
Preferred Stock, no       (957,327   )      (954,690   )   (952,093   )   (949,536   )   (947,017   )
par value
Tangible common         $ 2,585,980         1,890,684      1,870,172      1,840,207      1,847,479   
equity
Subtract: tMeds           (260,083   )      (260,083   )   (260,083   )   (260,083   )   (260,083   )
Tangible common
equity excluding        $ 2,325,897         1,630,601      1,610,089      1,580,124      1,587,396   
tMeds
Shares outstanding      $ 786,579           786,576        786,576        786,575        785,295     
Total shareholders’
equity to total           13.35      %      11.16          10.85          10.43          10.41
assets ratio
Tangible common
equity to tangible        9.67       %      7.35           7.12           6.81           6.81
assets ratio
                                                                                                     
Book value per common   $ 2.99              2.11           2.09           2.05           2.06
share
Tangible book value     $ 2.96              2.07           2.05           2.01           2.02
per common share
                                                                                          
Tier 1 Common Equity Ratio
Total shareholders’     $ 3,572,887         2,875,700      2,853,389      2,821,763      2,827,452
equity
Subtract/Add:
Accumulated other         (4,101     )      (16,156    )   (7,003     )   2,195          (21,093    )
comprehensive
(income) loss
Subtract: Goodwill        (24,431    )      (24,431    )   (24,431    )   (24,431    )   (24,431    )
Subtract: Other
intangible assets,        (5,149     )      (5,895     )   (6,693     )   (7,589     )   (8,525     )
net
Subtract: Disallowed
deferred tax              (714,226   )      -              -              -              -
assets^(1)
Other items               6,981             6,730          7,225          7,856          7,371       
Tier 1 capital          $ 2,831,961         2,835,948      2,822,487      2,799,794      2,780,774   
Subtract: Qualifying
trust preferred           (10,000    )      (10,000    )   (10,000    )   (10,000    )   (10,000    )
securities
Subtract: Series A        (957,327   )      (954,690   )   (952,093   )   (949,536   )   (947,017   )
Preferred Stock
Tier 1 common equity    $ 1,864,634         1,871,258      1,860,394      1,840,258      1,823,757   
                                                                                                     
Risk weighted assets      21,387,614 ^(2)   21,439,000     21,146,000     21,230,000     21,487,000
Tier 1 common equity      8.72       %      8.73           8.80           8.67           8.49        
ratio
                                                                                          
Pre-tax, Pre-credit Costs Income
(Loss) income before    $ (72,299    )      30,514         37,347         35,916         26,979
income taxes
Add: Provision for        146,526           63,572         44,222         66,049         54,565
losses on loans
Add: Other credit         39,236            22,046         26,119         24,849         35,962
costs^(3)
Add: Restructuring        1,969             1,192          1,393          858            639
charges
Subtract: Investment
securities gains,         (8,233     )      (6,656     )   (4,170     )   (20,083    )   (10,337    )
net.
Add: Visa
indemnification           757               833            1,734          2,979          5,942       
charges
Pre-tax, pre-credit     $ 107,956           111,501        106,645        110,568        113,750     
costs income
 
Non-interest income excluding investment securities gains, net
Total non-interest      $ 80,117            73,233         76,477         84,139         73,470
income
Subtract: Investment      (8,233     )      (6,656     )   (4,170     )   (20,083    )   (10,337    )
securities gains, net
Non-interest income
excluding investment    $ 71,884            66,577         72,307         64,056         63,133      
securities gains, net
 
 
Reconciliation of Non-GAAP Financial Measures (continued)
(in thousands)          4Q12                3Q12           2Q12           1Q12           4Q11
Net sequential quarter loan growth (decline)
Sequential quarter
growth (decline) in     $ (190,175   )      51,739         (163,571   )   (236,115   )   (22,273    )
total loans
Add: Transfers to
other loans held for      479,016           70,464         109,589        97,199         74,265
sale
Add: Foreclosures         33,572            42,961         30,087         48,127         36,331
Add: Charge-offs
excluding transfers       22,940            74,400         53,075         65,498         78,443
to other loans held
for sale
Net sequential
quarter loan growth     $ 345,354           239,564        29,180         (25,291    )   166,766     
(decline)
                                                                                          
Core Expenses
Total non-interest      $ 213,346           191,492        208,264        203,133        219,082
expense
Subtract: Other           (39,236    )      (22,046    )   (26,119    )   (24,849    )   (35,962    )
credit costs^(3)
Subtract:                 (1,969     )      (1,192     )   (1,393     )   (858       )   (639       )
Restructuring charges
Subtract: Visa
indemnification           (757       )      (833       )   (1,734     )   (2,979     )   (5,942     )
charges
Core expenses           $ 171,384           167,421        179,018        174,447        176,539     
                                                                                          
(dollars in             2012                2011           2010
thousands)
Core Expenses
Total non-interest      $ 816,237           903,765        1,009,576
expense
Subtract: Other           (112,250   )      (149,292   )   (198,425   )
credit costs^(3)
Subtract:                 (5,412     )      (30,665    )   (5,538     )
Restructuring charges
Subtract: Visa
indemnification           (6,304     )      (6,038     )   -
charges
Subtract: Curtailment     -                 (398       )   7,092
gain (loss)
Core expenses           $ 692,271           717,372        812,705     
                                                                                          
(1) Only one year of projected future taxable income may be applied in calculating deferred tax
assets for regulatory capital purposes.
(2) Preliminary
(3) Other credit costs consist primarily of losses on ORE, provision for losses on unfunded
commitments, and charges related to other loans held for sale
                                                                                          

Synovus                                                             
 
  INCOME STATEMENT DATA                  Twelve Months Ended
  (Unaudited)
  (Dollars in thousands, except per      December 31,
  share data)
                                                                              
                                         2012          2011          Change   
                                                                              
  Interest income                      $ 1,004,140     1,141,756     (12.1 ) %
  Interest expense                       150,023       217,602       (31.1 )
                                                                              
  Net interest income                    854,117       924,154       (7.6  )
  Provision for loan losses              320,369       418,795       (23.5 )
                                                                              
  Net interest income after              533,748       505,359       5.6    
  provision for loan losses
                                                                              
  Non-interest income:
  Service charges on deposit             78,203        78,770        (0.7  )
  accounts
  Fiduciary and asset management         42,503        45,809        (7.2  )
  fees
  Brokerage revenue                      26,913        26,006        3.5
  Mortgage banking income                32,272        20,316        58.9
  Bankcard fees                          34,075        41,493        (17.9 )
  Investment securities gains, net       39,142        75,007        (47.8 )
  Other fee income                       21,138        19,953        5.9
  Increase (decrease) in fair value      8,233         (1,118    )   nm
  of private equity investments, net
  Other non-interest income              31,487        32,638        (3.5  )
                                                                              
  Total non-interest income              313,966       338,874       (7.4  )
                                                                              
  Non-interest expense:
  Salaries and other personnel           375,872       371,546       1.2
  expense
  Net occupancy and equipment            105,575       114,037       (7.4  )
  expense
  FDIC insurance and other               45,408        59,063        (23.1 )
  regulatory fees
  Foreclosed real estate expense,        90,655        133,570       (32.1 )
  net
  Losses (gains) on other loans held     4,681         (2,737    )   nm
  for sale, net
  Professional fees                      41,307        40,585        1.8
  Data processing expense                33,440        35,757        (6.5  )
  Visa indemnification charges           6,304         6,038         4.4
  Restructuring charges                  5,412         30,665        (82.4 )
  Other operating expenses               107,583       115,241       (6.6  )
                                                                              
                                                                              
  Total non-interest expense             816,237       903,765       (9.7  )
                                                                              
                                                                              
  Income (loss) before income taxes      31,477        (59,532   )   nm
  Income tax (benefit) expense           (802,188  )   1,312         nm
                                                                              
                                                                              
  Net income (loss)                      833,665       (60,844   )   nm
                                                                              
  Net loss attributable to               -             (220      )   nm
  non-controlling interest
                                                                              
  Net income (loss) available to         833,665       (60,624   )   nm
  controlling interest
                                                                              
  Dividends and accretion of             58,703        58,088        1.1    
  discount on preferred stock
                                                                              
                                                                              
  Net income (loss) available to       $ 774,962       (118,712  )   nm
  common shareholders
                                                                              
                                                                              
  Basic EPS
  Net income (loss) available to         0.99          (0.15     )   nm
  common shareholders
                                                                              
  Diluted EPS
  Net income (loss) available to         0.85          (0.15     )   nm
  common shareholders
                                                                              
  Cash dividends declared per common     0.04          0.04          -
  share
                                                                              
  Return on average assets               3.16        % (0.21     )   nm
  Return on average common equity        40.65         (6.04     )   nm
                                                                              
                                                                              
  Average common shares outstanding      786,466       785,272       0.2     %
  - basic
  Average common shares outstanding      910,102       785,272       nm
  - diluted
                                                                              
nm - not meaningful
                                                                              

Synovus                                                                         
 
  INCOME
  STATEMENT DATA
  (Unaudited)
  (Dollars in
  thousands,        2012                                             2011        4th
  except per                                                                     Quarter
  share data)
                    Fourth       Third       Second      First       Fourth      '12 vs.
                                                                                 '11
                    Quarter      Quarter     Quarter     Quarter     Quarter     Change
                                                                                          
  Interest income $ 240,000      247,676     253,809     262,654     273,303     (12.2 ) %
  Interest          32,544       35,331      40,453      41,695      46,147      (29.5 )
  expense
                                                                                          
                                                                                          
  Net interest      207,456      212,345     213,356     220,959     227,156     (8.7  )
  income
  Provision for     146,526      63,572      44,222      66,049      54,565      168.5  
  loan losses
                                                                                          
                                                                                          
  Net interest
  income after      60,930       148,773     169,134     154,910     172,591     (64.7 )
  provision for
  loan losses
                                                                                          
                                                                                          
  Non-interest
  income:
  Service charges
  on deposit        20,883       20,404      18,684      18,231      19,175      8.9
  accounts
  Fiduciary and
  asset             10,537       10,340      10,792      10,835      10,763      (2.1  )
  management fees
  Brokerage         7,127        6,844       6,295       6,647       6,939       2.7
  revenue
  Mortgage          9,025        9,261       7,983       6,003       4,847       86.2
  banking income
  Bankcard fees     10,137       7,866       8,493       7,579       7,150       41.8
  Investment
  securities        8,233        6,656       4,170       20,083      10,337      (20.4 )
  gains, net
  Other fee         6,211        5,276       4,951       4,700       4,310       44.1
  income
  Increase
  (decrease) in
  fair value of     1,805        (944    )   7,279       93          (177    )   nm
  private equity
  investments,
  net
  Other
  non-interest      6,159        7,530       7,830       9,968       10,126      (39.2 )
  income
                                                                                          
                                                                                          
  Total
  non-interest      80,117       73,233      76,477      84,139      73,470      9.0    
  income
                                                                                          
                                                                                          
                                                                                          
  Non-interest
  expense:
  Salaries and
  other personnel   94,901       93,177      95,173      92,622      93,115      1.9
  expense
  Net occupancy
  and equipment     26,063       26,647      26,159      26,706      27,338      (4.7  )
  expense
  FDIC insurance
  and other         8,237        9,205       13,302      14,663      13,238      (37.8 )
  regulatory fees
  Foreclosed real
  estate expense,   34,978       11,997      20,708      22,972      31,853      9.8
  net
  Losses (gains)
  on other loans    675          4,104       (1,058  )   959         (145    )   nm
  held for sale,
  net
  Professional      12,037       10,074      9,929       9,267       10,321      16.6
  fees
  Data processing   8,420        8,284       8,712       8,024       8,532       (1.3  )
  expense
  Visa
  indemnification   757          833         1,734       2,979       5,942       (87.3 )
  charges
  Restructuring     1,969        1,192       1,393       858         639         208.1
  charges
  Other operating   25,309       25,979      32,212      24,083      28,249      (10.4 )
  expenses
                                                                                          
                                                                                          
  Total
  non-interest      213,346      191,492     208,264     203,133     219,082     (2.6  )
  expense
                                                                                          
                                                                                          
                                                                                          
  (Loss) income
  before income     (72,299  )   30,514      37,347      35,916      26,979      nm
  taxes
  Income tax        (799,795 )   (211    )   (2,105  )   (77     )   (378    )   nm
  benefit
                                                                                          
                                                                                          
  Net income        727,496      30,725      39,452      35,993      27,357      nm
                                                                                          
  Dividends and
  accretion of      14,736       14,695      14,649      14,624      14,578      1.1    
  discount on
  preferred stock
                                                                                          
                                                                                          
                                                                                          
  Net income
  available to    $ 712,760      16,030      24,803      21,369      12,779      nm
  common
  shareholders
                                                                                          
                                                                                          
  Basic EPS
  Net income
  available to      0.91         0.02        0.03        0.03        0.02        nm
  common
  shareholders
                                                                                          
  Diluted EPS
  Net income
  available to      0.78         0.02        0.03        0.02        0.01        nm
  common
  shareholders
                                                                                          
  Cash dividends
  declared per      0.01         0.01        0.01        0.01        0.01        -
  common share
                                                                                          
  Return on
  average assets    11.19      % 0.47      % 0.59      % 0.53      % 0.39        nm
  *
  Return on
  average common    150.19       3.30        5.23        4.49        2.66        nm
  equity *
                                                                                          
                                                                                          
  Average common
  shares            786,576      786,576     786,576     786,135     785,289     0.2     %
  outstanding -
  basic
  Average common
  shares            911,251      910,396     909,761     908,986     911,253     (0.0  )
  outstanding -
  diluted
                                                                                          
nm - not
meaningful
* - ratios are
annualized

                                                              
Synovus
                                                                 
  BALANCE SHEET DATA       December 31,       September 30,     December 31,
                           2012               2012              2011
  (Unaudited)
                                                                 
  (In thousands,
  except share data)
                                                                 
  ASSETS
  Cash and cash        $   614,630            454,028           510,423
  equivalents
  Interest bearing
  funds with Federal       1,498,390          815,156           1,567,006
  Reserve Bank
  Interest earning         23,442             27,215            13,590
  deposits with banks
  Federal funds sold
  and securities           113,517            116,318           158,916
  purchased under
  resale agreements
  Trading account
  assets, at fair          11,102             5,953             16,866
  value
  Mortgage loans held
  for sale, at fair        212,663            246,224           161,509
  value
  Other loans held for     10,690             11,254            30,156
  sale
  Investment
  securities available     2,981,112          3,229,440         3,690,125
  for sale, at fair
  value
                                                                 
  Loans, net of
  deferred fees and        19,541,690         19,731,865        20,079,813
  costs
  Allowance for loan       (373,405     )     (420,404    )     (536,494    )
  losses
  Loans, net               19,168,285         19,311,461        19,543,319   
                                                                 
  Premises and             479,546            475,222           486,923
  equipment, net
  Goodwill                 24,431             24,431            24,431
  Other intangible         5,149              5,895             8,525
  assets, net
  Other real estate        150,271            189,182           204,232
  Net deferred income      810,144            1,985             2,138
  tax asset
  Other assets             660,096            850,880           744,686      
                                                                 
  Total assets         $   26,763,468         25,764,644        27,162,845   
                                                                 
                                                                 
  LIABILITIES AND
  SHAREHOLDERS' EQUITY
  Liabilities:
  Deposits:
  Non-interest bearing $   5,665,527          5,503,288         5,366,868
  deposits
  Interest bearing
  deposits, excluding      14,298,768         14,423,583        15,261,710
  brokered deposits
  Brokered deposits        1,092,749          919,959           1,783,174    
                                                                 
                                                                 
  Total deposits           21,057,044         20,846,830        22,411,752
                                                                 
                                                                 
  Federal funds
  purchased and
  securities sold          201,243            165,865           313,757
  under repurchase
  agreements
  Long-term debt           1,726,455          1,654,183         1,364,727
  Other liabilities        205,839            222,066           245,157      
                                                                 
  Total liabilities        23,190,581         22,888,944        24,335,393   
                                                                 
                                                                 
  Equity:
  Shareholders'
  equity:
  Series A Preferred
  Stock, no par value      957,327            954,690           947,017
  (1)
  Common stock, par        792,273            792,269           790,989
  value $1.00 (2)
  Additional paid-in       2,189,874          2,202,903         2,241,171
  capital
  Treasury stock, at       (114,176     )     (114,176    )     (114,176    )
  cost (3)
  Accumulated other        4,101              16,156            21,093
  comprehensive income
  Accumulated deficit      (256,512     )     (976,142    )     (1,058,642  )
  Total shareholders'      3,572,887          2,875,700         2,827,452
  equity
                                                                 
  Total liabilities
  and shareholders'    $   26,763,468         25,764,644        27,162,845   
  equity
                                                                 
                                                                 
                                                                 
  (1) Preferred shares outstanding: 967,870, at all periods presented
  (2) Common shares outstanding: 786,579,240; 786,575,516; and 785,295,428 at
  December 31, 2012, September 30, 2012, and December 31, 2011, respectively.
  (3) Treasury shares: 5,693,452, at all periods presented
   

Synovus
                                                                             
AVERAGE BALANCES AND YIELDS/RATES (1)
(Unaudited)
(Dollars in thousands)
                                                                               
              2012                                                            2011
                Fourth           Third          Second         First          Fourth
                Quarter          Quarter        Quarter        Quarter        Quarter
Interest
Earning
Assets
Taxable
investment    $ 3,069,000        3,495,838      3,539,376      3,577,026      3,647,459
securities
(2)
  Yield         1.62         %   1.67           2.11           2.35           2.59
                                                                               
Tax-exempt
investment    $ 17,377           19,503         21,408         23,559         25,566
securities
(2) (4)
  Yield
  (taxable      6.59         %   6.47           6.40           6.36           6.57
  equivalent)
                                                                               
Trading
account       $ 9,600            12,343         13,647         14,975         19,107
assets
  Yield         8.04         %   8.27           6.93           7.47           4.87
                                                                               
Commercial    $ 15,692,588       15,691,881     15,941,719     16,144,615     16,276,207
loans (3) (4)
  Yield         4.48         %   4.63           4.67           4.76           4.82
                                                                               
Consumer      $ 3,992,986        3,940,000      3,896,941      3,866,084      3,871,393
loans (3)
  Yield         4.77         %   4.80           4.87           4.95           4.95
                                                                               
Allowance for $ (405,237   )     (446,495   )   (498,419   )   (529,669   )   (587,956   )
loan losses
                                                                               
Loans, net    $ 19,280,337       19,185,386     19,340,241     19,481,030     19,559,644
(3)
  Yield         4.65         %   4.79           4.85           4.94           5.01
                                                                               
Mortgage
loans held    $ 208,839          175,199        90,499         112,040        161,632
for sale
  Yield         3.72         %   4.03           4.99           4.88           4.58
                                                                               
Federal funds
sold, due
from Federal
Reserve Bank, $ 1,366,422        1,215,743      1,668,814      1,830,295      2,221,728
and other
short-term
investments
  Yield         0.24         %   0.24           0.24           0.24           0.24
                                                                               
Federal Home
Loan Bank and
Federal       $ 66,630           53,239         63,665         78,100         84,171
Reserve Bank
stock (5)
  Yield         2.03         %   1.87           1.85           1.43           0.93
                                                                               
Total
interest      $ 24,018,205       24,157,251     24,737,650     25,117,025     25,719,307
earning
assets
  Yield         3.99         %   4.09           4.14           4.22           4.23        
                                                                               
Interest
Bearing
Liabilities
                                                                               
Interest
bearing       $ 3,872,025        3,344,561      3,404,540      3,540,327      3,457,677
demand
deposits
  Rate          0.18         %   0.19           0.22           0.25           0.26
                                                                               
Money market  $ 6,251,374        6,751,607      6,769,037      6,755,769      6,697,334
accounts
  Rate          0.33         %   0.33           0.42           0.49           0.57
                                                                               
Savings       $ 558,726          557,086        557,149        534,118        516,520
deposits
  Rate          0.10         %   0.10           0.11           0.12           0.12
                                                                               
Time deposits
under         $ 1,648,554        1,763,864      1,868,348      1,967,084      2,062,171
$100,000
  Rate          0.74         %   0.85           0.97           1.08           1.17
                                                                               
Time deposits $ 2,015,582        2,176,488      2,336,496      2,480,044      2,710,893
over $100,000
  Rate          0.99         %   1.11           1.23           1.33           1.40
                                                                               
Brokered
money market  $ 180,216          186,336        222,916        223,113        236,973
accounts
  Rate          0.34         %   0.33           0.33           0.28           0.27
                                                                               
Brokered time $ 800,434          820,908        1,036,521      1,346,868      1,689,538
deposits
  Rate          1.42         %   1.83           1.94           1.89           1.87        
                                                                               
Total
interest      $ 15,326,911       15,600,850     16,195,007     16,847,323     17,371,106
bearing
deposits
  Rate          0.47         %   0.54           0.64           0.73           0.82
                                                                               
Federal funds
purchased and
other         $ 266,431          350,183        368,984        296,018        329,343
short-term
liabilities
  Rate          0.16         %   0.17           0.18           0.24           0.26
                                                                               
Long-term     $ 1,740,588        1,372,741      1,326,239      1,386,324      1,443,825
debt
  Rate          3.27         %   4.09           4.34           3.19           2.78
                                                                               
Total
interest      $ 17,333,930       17,323,774     17,890,230     18,529,665     19,144,274
bearing
liabilities
  Rate          0.75         %   0.81           0.91           0.90           0.96        
                                                                               
Non-interest
bearing       $ 5,466,312        5,560,827      5,606,352      5,397,964      5,413,322
demand
deposits
                                                                               
Net interest    3.45         %   3.51           3.48           3.55           3.52        
margin
                                                                               
Taxable
equivalent    $ 766              761            780            798            844
adjustment
                                                                               
(1) Yields and rates are annualized.
(2) Excludes net unrealized gains and (losses).
(3) Average loans are shown net of unearned income. Non-performing loans are included.
(4) Reflects taxable-equivalent adjustments, using the statutory federal income tax rate
of 35%, in adjusting interest on tax-exempt loans and investment securities to a
taxable-equivalent basis.
(5) Included as a component of Other Assets on the balance sheet
 

Synovus                                                                    
 
                                                                                                        
  LOANS OUTSTANDING AND NON-PERFORMING LOANS COMPOSITION
  (Unaudited)
  (Dollars in thousands)
                                                                                                        
                                                                                                        
                   December 31, 2012
                                      Loans as a %       Total                Non-performing
                                                                              Loans
                                      of Total           Non-performing       as a % of
                                      Loans                                   Total
  Loan Type          Total Loans      Outstanding        Loans                Nonperforming   
                                                                              Loans
                                                                                                        
                                                                                                        
  Multi-Family     $ 796,110          4.1          %   $ 8,129                1.5            %
  Hotels             655,263          3.3                4,902                0.9
  Office             773,881          4.0                4,855                0.9
  Buildings
  Shopping           896,869          4.6                9,373                1.7
  Centers
  Commercial         226,513          1.2                51,462               9.5
  Development
  Warehouses         538,157          2.7                2,898                0.5
  Other
  Investment         489,325          2.5                10,248               1.9          
  Property
                                                                                                        
  Total
  Investment         4,376,118        22.4               91,867               16.9         
  Properties
                                                                                                        
  1-4 Family         130,841          0.7                7,633                1.4
  Construction
  1-4 Family
  Investment         865,801          4.4                26,985               5.0
  Mortgage
  Residential        282,463          1.4                37,960               7.0          
  Development
                                                                                                        
  Total 1-4
  Family             1,279,105        6.5                72,578               13.4         
  Properties
                                                                                                        
  Land               794,229          4.1                191,475              35.2         
  Acquisition
                                                                                                        
  Total
  Commercial         6,449,452        33.0               355,920              65.5         
  Real Estate
                                                                                                        
  Commercial ,
  Financial, and     5,301,134        27.1               79,575               14.6
  Agricultural
  Owner-Occupied     3,800,380        19.4               43,386               8.0          
  Real Estate
                                                                                                        
  Total
  Commercial &       9,101,514        46.5               122,961              22.6
  Industrial
                                                                                                        
  Home Equity        1,542,397        7.9                16,741               3.1
  Lines
  Consumer           1,394,248        7.1                38,630               7.1
  Mortgages
  Credit Cards       263,561          1.3                -                    -
  Other Retail       810,891          4.2                9,081                1.7          
  Loans
                                                                                                        
  Total Retail       4,011,097        20.5               64,452               11.9
                                                                                                        
  Unearned           (20,373    )     nm                 -                    nm
  Income
                                                                                                        
  Total            $ 19,541,690       100.0        %   $ 543,333              100.0          %
                                                                                                        
                                                                                                        
  LOANS OUTSTANDING BY TYPE COMPARISON
  (Unaudited)
  (Dollars in thousands)
                                                                                                
                                                                                               4Q12
                     Total Loans                         4Q12 vs. 3Q12                         vs.
                                                                                               4Q11
  Loan Type          December 31,     September          % change (1)         December 31,     %
                     2012             30, 2012                                2011             change
                                                                                                        
                                                                                                        
  Multi-Family     $ 796,110          759,500            19.2           %   $ 785,672          1.3     %
  Hotels             655,263          689,196            (19.6      )         791,444          (17.2 )
  Office             773,881          772,961            0.5                  775,671          (0.2  )
  Buildings
  Shopping           896,869          918,224            (9.3       )         979,288          (8.4  )
  Centers
  Commercial         226,513          279,585            (75.5      )         286,954          (21.1 )
  Development
  Warehouses         538,157          508,770            23.0                 489,086          10.0
  Other
  Investment         489,325          474,228            12.7                 449,198          8.9    
  Property
                                                                                                        
  Total
  Investment         4,376,118        4,402,464          (2.4       )         4,557,313        (4.0  )
  Properties
                                                                                                        
  1-4 Family         130,841          152,598            (56.7      )         199,088          (34.3 )
  Construction
  1-4 Family
  Investment         865,801          906,744            (18.0      )         976,552          (11.3 )
  Mortgage
  Residential        282,463          367,908            (92.4      )         442,844          (36.2 )
  Development
                                                                                                        
  Total 1-4
  Family             1,279,105        1,427,250          (41.3      )         1,618,484        (21.0 )
  Properties
                                                                                                        
  Land               794,229          909,420            (50.4      )         1,094,821        (27.5 )
  Acquisition
                                                                                                        
  Total
  Commercial         6,449,452        6,739,134          (17.1      )         7,270,618        (11.3 )
  Real Estate
                                                                                                        
  Commercial ,
  Financial, and     5,301,134        5,163,546          10.6                 5,088,420        4.2
  Agricultural
  Owner-Occupied     3,800,380        3,877,578          (7.9       )         3,852,854        (1.4  )
  Real Estate
                                                                                                        
  Total
  Commercial &       9,101,514        9,041,124          2.7                  8,941,274        1.8
  Industrial
                                                                                                        
                                                                                                        
  Home Equity        1,542,397        1,572,986          (7.7       )         1,619,585        (4.8  )
  Lines
  Consumer           1,394,248        1,399,432          (1.5       )         1,411,749        (1.2  )
  Mortgages
  Credit Cards       263,561          257,922            8.7                  273,098          (3.5  )
  Other Retail       810,891          738,320            39.1                 575,475          40.9   
  Loans
  Total Retail       4,011,097        3,968,660          4.3                  3,879,907        3.4
                                                                                                        
  Unearned           (20,373    )     (17,053    )       77.5                 (11,986     )    70.0   
  Income
                                                                                                        
  Total            $ 19,541,690       19,731,865         (3.8       )   %   $ 20,079,813       (2.7  ) %
                                                                                                        
(1) Percentage change is annualized.
                                                                                                        

Synovus
                                                                                      
  CREDIT QUALITY DATA
  (Unaudited)
  (Dollars in        2012                      2011                                    4th
  thousands)                                                                           Quarter
                     Fourth      Third         Second      First         Fourth        '12 vs.
                                                                                       '11
                     Quarter     Quarter       Quarter     Quarter       Quarter       Change
                                                                                                
  Non-performing   $ 543,333     700,204       755,161     836,039       883,021       (38.5 ) %
  Loans
  Other Loans
  Held for Sale      9,455       10,019        31,306      18,317        30,156        (68.6 )
  (1)
  Other Real         150,271     189,182       174,941     201,429       204,232       (26.4 )
  Estate
  Non-performing     703,059     899,405       961,408     1,055,785     1,117,409     (37.1 )
  Assets
                                                                                                
  Allowance for      373,405     420,404       453,325     507,794       536,494       (30.4 )
  Loan Losses
                                                                                                
  Net
  Charge-Offs -      193,525     96,493        98,691      94,749        113,454       70.6
  Quarter
  Net
  Charge-Offs /      3.94      % 1.97          1.99        1.90          2.26
  Average Loans
  - Quarter (2)
                                                                                                
  Non-performing     2.78        3.55          3.84        4.21          4.40
  Loans / Loans
  Non-performing
  Assets /
  Loans, Other       3.57        4.51          4.83        5.26          5.50
  Loans Held for
  Sale & ORE
  Allowance /        1.91        2.13          2.30        2.56          2.67
  Loans
                                                                                                
  Allowance /
  Non-performing     68.72       60.04         60.03       60.74         60.76
  Loans
  Allowance /
  Non-performing     93.58       131.56        136.94      128.32        124.04
  Loans (3)
                                                                                                
  Past Due Loans
  over 90 days     $ 6,811       8,972         5,863       8,388         14,521        (53.1 ) %
  and Still
  Accruing
  As a
  Percentage of      0.03      % 0.05          0.03        0.04          0.07
  Loans
  Outstanding
                                                                                                
  Total Past
  Dues Loans and   $ 104,825     108,633       91,962      144,794       149,442       (29.9 )
  Still Accruing
  As a
  Percentage of      0.54      % 0.55          0.47        0.73          0.74
  Loans
  Outstanding
                                                                                                
  Accruing
  troubled debt    $ 674,527     698,847       687,396     651,239       668,472       0.9
  restructurings
  (TDRs)
                                                                                                
  (1) Represent impaired loans that are intended to be sold. Held for sale loans are carried at
  the lower of cost or fair value, less costs to sell.
  (2) Ratio is annualized.
  (3) Excludes non-performing loans for which the expected loss has been charged off.
                                                                                                
                                                                                                
                                                                                                
                                                                                                
  SELECTED CAPITAL INFORMATION (1)
  (Unaudited)
  (Dollars in                     
  thousands)
                     December    December
                     31, 2012    31, 2011
                                                                                                
  Tier 1 Capital   $ 2,831,960   2,780,774
  Total
  Risk-Based         3,460,710   3,544,089
  Capital
  Tier 1 Capital     13.24     % 12.94
  Ratio
  Tier 1 Common      8.72        8.49
  Equity Ratio
  Total
  Risk-Based         16.18       16.49
  Capital Ratio
  Tier 1             11.00       10.08
  Leverage Ratio
  Common Equity
  as a
  Percentage of      9.77        6.92
  Total Assets
  (2)
  Tangible
  Common Equity
  as a               9.67        6.81
  Percentage of
  Tangible
  Assets (3)
  Tangible
  Common Equity
  as a               12.09       8.60
  Percentage of
  Risk Weighted
  Assets (3)
  Book Value Per
  Common Share       2.99        2.06
  (4) (5)
  Tangible Book
  Value Per          2.96        2.02
  Common Share
  (3) (5)
                                                                                                
                                                                                                
  (1) Current quarter regulatory capital information is preliminary.
  (2) Common equity consists of Total Shareholders' Equity less Series A Preferred Stock.
  (3) Excludes the carrying value of goodwill and other intangible assets from common equity and
  total assets.
  (4) Book Value Per Common Share consists of Total Shareholders' Equity less Series A Preferred
  Stock divided by total common shares outstanding.
  (5) Equity and common shares exclude impact of unexercised tangible equity units (tMEDS).

Contact:

Synovus Financial Corp.
Patrick A. Reynolds, 706-649-4973
Director of Investor Relations
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