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Synovus Reports Results for Fourth Quarter of 2010
Aggressive Asset Dispositions Drive Non-performing Assets to Lowest Level in Two Years

Columbus, Ga., January 28, 2011 Synovus Financial Corp. (NYSE: SNV) today reported a net loss attributable to common shareholders of $180.0 million for the fourth quarter of 2010, compared to a net loss of $195.8 million for the third quarter of 2010. The net loss per common share for the fourth quarter of 2010 was $0.23 compared to $0.25 for the third quarter of 2010. During the quarter, Synovus’ credit trends continued to improve and its capital position remained strong.

Fourth Quarter Business Results

Continued Improvement in Credit Trends

·         Dispositions of ORE, problem loans, and potential problem loans were $573 million in the fourth quarter compared to $172 million in the third quarter of 2010, the highest quarterly disposition activity in our history.

·        Total non-performing assets declined for the third consecutive quarter to $1.28 billion at December 31, 2010, the lowest level in two years, down from $1.56 billion at September 30, 2010.

·        New non-performing loan inflows were $295 million in the fourth quarter of 2010, down 30 percent from the previous quarter and down 55 percent from the same quarter a year ago. This level of non-performing loan inflows is the lowest level in over two years.

·         Total delinquencies (loans 30-89 days past due and 90 days or more past due) declined to 0.82% of loans at December 31, 2010 from 1.12% at September 30, 2010, for a $77 million decrease.

·         Net charge-offs were $385 million in the quarter compared to $237 million in the third quarter of 2010, impacted by significantly higher asset disposition activity and an increase in transfers to loans held-for-sale.

·         Total credit costs declined for the sixth consecutive quarter to $282 million for the fourth quarter of 2010, from $301 million in the third quarter of 2010.

·         The allowance for loan losses coverage of non-performing loans (excluding non-performing loans for which the expected loss has been charged-off) increased to 193 percent at December 31, 2010, compared to 178 percent at September 30, 2010.

Strong Capital Position

As of December 31, 2010, capital ratios were as follows:

·         Tier 1 Capital Ratio – 12.79%

·         Tier 1 Common Equity Ratio – 8.63%

·         Tangible Common Equity to Tangible Assets Ratio – 6.73%

·         Total Risk-based Capital Ratio – 16.51%

Core Performance

·         Pre-tax, pre-credit costs income was $117.2 million for the fourth quarter of 2010, compared to $123.5 million in the third quarter of 2010.

o        Net interest income declined $3.5 million due to lower loan balances, while the net interest margin expanded 4 basis points to 3.37% benefiting from a 10 basis point decrease in the effective cost of funds.

o        Non-interest income decreased by $1.9 million, due primarily to lower earnings on private equity investments and NSF fees, partially offset by strong growth in brokerage revenue.

Balance Sheet Fundamentals

·         The loan portfolio shrinkage from net pay downs continued to moderate during the fourth quarter. The decline in loans outstanding from net pay downs was approximately $80 million for the quarter, compared to approximately $320 million for the third quarter of 2010. Net pay downs exclude the impact of loan sales, transfers to loans held-for-sale, charge-offs, and foreclosures. The reported sequential quarter decrease in loans outstanding was $995 million.

·         Total core deposits, excluding time deposits, grew 6.1% (annualized) in the fourth quarter over the third quarter of 2010, and 4.3% over the fourth quarter of 2009.

·         Total deposits declined $736 million from the prior quarter to $24.5 billion. $397 million of the decline was in brokered money market and brokered time deposit accounts. Total core deposits declined $339 million linked quarter to $21.3 billion, driven by a $571 million decline in time deposits.

“During the quarter, we disposed of $573 million in distressed assets, significantly improving the quality of our balance sheet. Additionally, our total non-performing assets, non-performing loan inflows, delinquencies, and credit costs are at their lowest levels in two or more years. We believe that the continued improvement in these credit metrics, along with our recently announced efficiency initiatives, better positions us to return to profitability during 2011. These efficiency initiatives are expected to generate an estimated $100 million in expense savings by the end of 2012, with approximately $75 million of these savings to be realized in 2011,” said Kessel D. Stelling, President and CEO of Synovus. 

Stelling continued, “In addition to the bold steps taken regarding asset dispositions and efficiency initiatives, our team is intensely focused on growing and expanding customer relationships. Specifically, we have taken major steps to ramp up our commercial banking efforts, recently assembling a highly-skilled, large corporate banking team to secure business relationships that we believe will not only drive C&I loan growth, but also connect more commercial customers with our full suite of specialized banking solutions. The integration of this team will complement our strong commercial banking team throughout our geographic footprint.  We are making investments in the right tools, products and services, and we have recently launched a major initiative to redesign, end-to-end, our loan and deposit processes to be more customer-friendly.  We intend to make every transaction and interaction with our bank an exceptional experience for our customers.”

Synovus will host an earnings highlights conference call at 8:30 a.m. EST on January 28, 2011.  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 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 over $30 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

SNV 4Q 2010 Earnings Charts.pdf SNV 4Q Earnings Charts
Patrick A. Reynolds
Title: Director of Investor Relations
Phone: (706) 649-4973