8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

July 19, 2006

Date of Report

(Date of Earliest Event Reported)

Synovus Financial Corp.

(Exact Name of Registrant as Specified in its Charter)

Georgia
(State of Incorporation) 1-10312
(Commission File Number) 58-1134883
(IRS Employer Identification No.)

1111 Bay Avenue, Suite 500, Columbus, Georgia 31901

(Address of principal executive offices) (Zip Code)

(706) 649-2267

(Registrant's telephone number, including area code)

________________________________________________

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02	Results of Operations and Financial Condition.
	On July 19, 2006, Synovus Financial Corp. (“Synovus”) issued a press release and will hold an investor call and webcast to disclose financial results for the quarter ended June 30, 2006. The press release and Supplemental Information for use at this investor call are attached hereto as Exhibits 99.1 and 99.2 and incorporated herein by reference. This information shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934 or incorporated by reference into any document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934 except as shall be expressly set forth by specific reference in such filing.
Item 5.02	Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers.
	Effective July 19, 2006, the Board of Directors of Synovus appointed Liliana McDaniel as Synovus’ Chief Accounting Officer. Ms. McDaniel, age 42, has been the Senior Vice President, Director of Financial Reporting of Synovus since 2001. From 1998 to 2001, Ms. McDaniel served as Synovus’ Vice President, Financial Reporting Manager.
Item 7.01	Regulation FD Disclosure. See Item 2.02 above.
Item 8.01	Other Events. Columbus Bank and Trust Company (“CB&T”), a wholly owned banking subsidiary of Synovus, and CompuCredit Corporation (“CompuCredit”) have agreed to an Assurance of Discontinuance (“Agreement”) with the New York State Attorney General’s office regarding allegations that CB&T and CompuCredit were in violation of New York state law with respect to identified marketing, servicing and collection practices pertaining to the Aspire credit card program. CB&T issues Aspire credit cards that are marketed and serviced by CompuCredit. Among other things, the Agreement provides for a civil penalty of $500,000 and requires specified restitution to cardholders. While the amount of restitution cannot be precisely determined at this time, it is expected that the total aggregate restitution will be approximately $11 million in the form of account credits by CompuCredit which will be netted against the cardholder’s current account indebtedness and which is expected to result in cash payments by CompuCredit of no more than $2.0 million.

2

	Synovus and CB&T will not incur any financial loss in connection with the Agreement as CompuCredit has agreed to be responsible for all amounts to be paid pursuant to the Agreement. A provision of the Affinity Agreement between CB&T and CompuCredit, pursuant to which CB&T issues the Aspire credit card, generally requires CompuCredit to indemnify CB&T for losses incurred as a result of the failure of the Aspire credit card program to comply with applicable law. Synovus is subject to a per event 10% share of any such loss, but Synovus’ 10% payment obligation is limited to a cumulative total of $2 million for all losses incurred. CompuCredit waived Synovus’ 10% payment obligation in connection with the Agreement. In addition, the FDIC is currently conducting an investigation of the policies, practices and procedures used by CB&T in connection with the credit card programs offered pursuant to the Affinity Agreement with CompuCredit. CB&T is cooperating with the FDIC’s investigation. Synovus cannot predict the eventual outcome of the FDIC’s investigation; however, it is possible that the investigation could result in material changes to CB&T’s policies, practices and procedures in connection with the credit card programs offered pursuant to the Affinity Agreement. At this time, management of Synovus does not expect the ultimate resolution of the investigation to have a material adverse effect on its consolidated financial condition, results of operations or cash flows as a result of the expected performance by CompuCredit of its indemnification obligations described in the paragraph above.
Item 9.01	Financial Statements and Exhibits.
	(d)	Exhibits
	Exhibit No.	Description
	99.1	Synovus’ press release dated July 19, 2006
	99.2	Supplemental Information prepared for use with the press release

This Current Report on Form 8-K (including information included or incorporated by reference herein) contains statements that constitute “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements regarding Synovus’ expectation that the ultimate resolution of the FDIC’s investigation of the policies, practices and procedures used by CB&T in connection with the credit card programs offered pursuant to its Affinity Agreement with CompuCredit will not have a material adverse effect on its consolidated financial condition, results of operations or cash flows as a result of the expected performance by CompuCredit of its indemnification obligations under the Affinity Agreement, Synovus’ expected growth in earnings per share for 2006, Synovus’ belief that it is in a position to achieve high earnings performance, and the assumptions

3

underlying such statements, including, with respect to Synovus’ expected increase in earnings per share for 2006, that the Federal Reserve is at or near the end of its tightening cycle; a favorable credit environment; TSYS’ earnings growth in the 21 – 23 % range; and incremental (as compared to 2005) equity-based compensation expense of approximately 5 cents per diluted share. 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 filing. Many of these factors are beyond Synovus’ ability to control or predict. These factors include, but are not limited to: (1) competitive pressures arising from aggressive competition from other financial service providers; (2) factors that affect the delinquency rate on Synovus’ loans and the rate at which Synovus’ loans are charged off; (3) changes in the cost and availability of funding due to changes in the deposit market and credit market, or the way in which Synovus is perceived in such markets; (4) inflation, interest rate, market and monetary fluctuations; (5) TSYS’ earnings growth is lower that anticipated; (6) the strength of the United States economy in general and the strength of the local economies in which Synovus conducts operations may be different than expected; (7) the timely development of competitive new products and services and the acceptance of such by customers; (8) Synovus’ inability to control expenses; (9) a deterioration in credit quality or a reduced demand for credit; (10) the costs and effects of litigation, regulatory investigations, or similar matters, or adverse facts and developments related thereto; (11) the impact of the application of and/or changes in accounting principles; (12) the effects of changes in government policy, laws and regulations, or the interpretation or application thereof, including restrictions and/or limitations arising from banking laws, regulations and examinations; (13) changes in consumer spending, borrowing and saving habits; (14) technological changes; and (15) the impact on Synovus’ business, as well as on the risks set forth above, of various domestic or international military or terrorist activities or conflicts. Additional factors that could cause actual results to differ materially from those contemplated in this filing can be found in Synovus’ other 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.

4

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SYNOVUS FINANCIAL CORP.
Dated: July 19, 2006	By:/s/ Kathleen Moates                            Kathleen Moates                Senior Deputy General Counsel

5

EX-99.1

Exhibit 99.1

For Immediate Release

Contact:	Patrick A. Reynolds
	Director of Investor Relations
	(706) 649-4973

Synovus Reports 18.9% Increase in Net Income for Second Quarter 2006

Financial Services Segment’s Net Income Growth of 21.7% Continues the Excellent Pace for the Year

Columbus, Ga., July 19, 2006 — Synovus’ second quarter earnings grew 18.9% over the second quarter 2005 to $152.8 million, which represented earnings per share growth of 15.0% to $.47 per share, Synovus’ Chief Executive Officer Richard E. Anthony announced today.

“The first half of 2006 has confirmed our excellent growth momentum with the Synovus Financial Services segment providing the key drivers for an outstanding second quarter,” said Anthony. “Excellent credit quality, strong loan growth, and margin expansion drove the earnings momentum in the quarter for the Financial Services segment.”

Return on assets for the quarter was 2.07% and return on equity was 18.45% for the second quarter 2006, compared to 1.98% and 18.70%, respectively, in the same period last year. Shareholders’ equity at June 30, 2006 was $3.37 billion, which representeda very strong 11.05% of quarter-end assets. Total assets ended the quarter at $30.5 billion, an increase of 14.3% from the same period last year.

Financial Services’ net income was up 21.7 % over the second quarter last year. Net interest income grew 20.6% over the second quarter last year as the net interest margin expanded to 4.39% from last quarter’s excellent 4.32% level. The reported net interest margin is primarily due to increased yields on the variable rate portion of the loan portfolio, which is approximately 58% of total loans. Total core deposit growth (excludes brokered time deposits) was 14.3% over last year. Fundamental core deposit growth (excluding acquisitions) was 9.9% over 2005. Total loans grew 15.5% over last year, while fundamental loan growth was 11.5% year over year.

Asset quality continued the excellent trend that began in 2004. The net charge-off ratio was 0.17% compared to 0.27% last quarter and 0.37% in the second quarter of last year. The ratio of nonperforming assets to loans and other real estate was 0.48%, compared to 0.45% last quarter and 0.51% in the second quarter last year. The allowance for loan losses was 1.33% of loans, which provides coverage of 353% of nonperforming loans. The provision for loan losses covered net charge-offs by 1.95x for the quarter.

Financial Services’ non-interest income was up 10.9% over the second quarter last year with increases in bankcard fees of 16.2% and brokerage and investment banking revenue of 13.0%. Mortgage banking revenue was up 9.1%, service charges on deposit accounts were up 5.0%, and fiduciary and asset management fees – which include trust, financial planning and asset management fees – were up 3.5%, compared to the second quarter last year. Financial Services’ non-interest expense was up 21.0%

Post Office Box 120 / Columbus, GA 31902

www.synovus.com

Synovus Reports 18.9% Increase in Net Income for Second Quarter/p. 2

compared to the second quarter of 2005, due to the $3.7 million impact of stock-based compensation expense and other increases in personnel expenses from our expansion of the branch network. The efficiency ratio was 50.6% for the quarter compared to 49.5% for the second quarter last year.

TSYS reported net income of $57.4 million for the second quarter 2006 compared to $50.6 million last year, a 13.4% increase. Diluted earnings per share for the quarter increased to $0.29 up from $0.26 last year, a 13.3% increase. During the quarter, TSYS expanded its global footprint to 76 countries with the acquisition of London-based Card Tech, Ltd., now known as TSYS Card Tech. Additionally, in the quarter, TSYS reached a long-term agreement with Wachovia Corporation to provide core processing and other related services in support of their re-entry into the consumer credit-card line of business. TSYS Acquiring Solutions reached agreements with Delta Payment Solutions and New England Bankcard Association to provide merchant processing services and renewed a long term relationship with Heartland Payment Systems, one of the nation’s largest providers of merchant acquiring services.

Anthony concluded, “As a result of the second quarter performance, we are confident in our expectation to be at the higher end of 12 – 14% earnings per share growth for 2006. This expectation includes the estimated impact of expensing the fair value of stock options beginning in 2006 as well as expenses associated with restricted stock awards. The incremental (as compared to 2005) after-tax expense for both options and restricted stock awards in 2006 is estimated at 5 cents per diluted share. For the remainder of 2006, we expect that the Federal Reserve is at or near the end of its tightening cycle, that the credit environment will remain favorable, and TSYS will perform within its range of guidance. Our retail banking initiative, which we implemented in 2005, is expanding core retail deposit growth, home equity loan growth, and fee income from retail product sales this year. As we look into the remainder of 2006, an important initiative is the acceleration of commercial and industrial customer growth. Our focus for this initiative is to grow C&I loans and to broaden existing relationships with the cross sale and penetration of specialty products such as corporate cash management, asset–based loans, and capital markets products. Synovus will continue to focus on growing deposits, managing the loan growth, quality and mix, maintaining a strong margin, expanding fee income and continuing to refine our processes to improve efficiencies. With our very dedicated and highly motivated team members and our strong balance sheet, we believe we are in position to achieve high earnings performance throughout the year and beyond.”

Synovus will host an earnings highlights conference call at 4:30 pm EDT, on July 19, 2006. Shareholders and other interested persons may listen to this conference call via simultaneous Internet broadcast at www.synovus.com by clicking on the “Live Webcast” icon. You may download RealPlayer or Windows Media Player (free download available) prior to accessing the actual call or the replay. The replay will be archived for 12 months and will be available 30-45 minutes after the call.

Synovus (NYSE: “SNV”) is a diversified financial services holding company with over $30 billion in assets based in Columbus, Georgia. Synovus provides integrated financial services including banking, financial management, insurance, mortgage and leasing services through 40 banks and other Synovus offices in Georgia, Alabama, South Carolina, Florida and Tennessee; and electronic payment processing through an 81-percent stake in TSYS (NYSE: “TSS”), one of the world’s largest companies for outsourced payment services. Synovus has been named one of “The 100 Best Companies To Work For” in America by FORTUNE magazine, and has been recognized in its Hall of Fame for consecutive appearances on the list since its inception in 1998. In 2005, Synovus was also named as one of “America’s Most Admired Companies”. See Synovus on the Web at www.synovus.com.

Post Office Box 120 / Columbus, GA 31902

www.synovus.com

Synovus Reports 18.9% Increase in Net Income for Second Quarter/p. 3

This press release contains statements that constitute “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements regarding Synovus’ expected growth in earnings per share for 2006, Synovus’ belief that it is in a position to achieve high earnings performance, and the assumptions underlying such statements, including, with respect to Synovus’ expected increase in earnings per share for 2006, that the Federal Reserve is at or near the end of its tightening cycle; a favorable credit environment; TSYS’ earnings growth in the 21 – 23 % range; and incremental (as compared to 2005) equity-based compensation expense of approximately 5 cents per diluted share. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. A number of important factors could cause actual results to differ materially from those contemplated by the forward- looking statements in this press release. Many of these factors are beyond Synovus’ ability to control or predict. These factors include, but are not limited to, competitive pressures arising from aggressive competition from other financial service providers; factors that affect the delinquency rate on Synovus’ loans and the rate at which Synovus’ loans are charged off; changes in the cost and availability of funding due to changes in the deposit market and credit market, or the way in which Synovus is perceived in such markets; inflation, interest rate, market and monetary fluctuations; TSYS’ earnings growth is lower that anticipated; the strength of the United States economy in general and the strength of the local economies in which Synovus conducts operations may be different than expected; the timely development of competitive new products and services and the acceptance of such by customers; Synovus’ inability to control expenses; a deterioration in credit quality or a reduced demand for credit; the costs and effects of litigation, regulatory investigations, or similar matters, or adverse facts and developments related thereto; the impact of the application of and/or changes in accounting principles; the effects of changes in government policy, laws and regulations, or the interpretation or application thereof, including restrictions and/or limitations arising from banking laws, regulations and examinations; changes in consumer spending, borrowing and saving habits; technological changes; and the impact on Synovus’ business, as well as on the risks set forth above, of various domestic or international military or terrorist activities or conflicts. Additional factors that could cause actual results to differ materially from those contemplated in this press release can be found in Synovus’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise.

###

Post Office Box 120 / Columbus, GA 31902

www.synovus.com

EX-99.2

Exhibit 99.2

	Synovus							4 of 11
		INCOME STATEMENT		Six Months Ended
		(In thousands, except per share data)		June 30,
				2006		2005	Change
		Interest Income (Taxable Equivalent)	$	940,168		693,692	35.5	%
		Interest Expense		387,567		226,554	71.1
		Net Interest Income (Taxable Equivalent)		552,601		467,138	18.3
		Tax Equivalent Adjustment		2,962		3,211	(7.7)
		Net Interest Income		549,639		463,927	18.5
		Provision for Loan Losses		38,083		42,106	(9.6)
		Net Interest Income After Provision		511,556		421,821	21.3
		Non-Interest Income:
		Electronic Payment Processing Services		454,990		420,947	8.1
		Merchant Services		129,769		95,801	35.5
		Other Transaction Processing Services Revenue		91,588		93,838	(2.4)
		Service Charges on Deposits		56,123		54,994	2.1
		Fiduciary and Asset Management Fees		23,222		22,175	4.7
		Brokerage and Investment Banking Revenue		13,506		12,070	11.9
		Mortgage Banking Income		13,978		13,328	4.9
		Bankcard Fees		21,527		17,691	21.7
		Securities Gains (Losses)		(1,136)		598	nm
		Other Fee Income		18,988		15,319	23.9
		Other Non-Interest Income		18,435		16,311	13.0
		Non-Interest Income before Reimbursable Items		840,990		763,072	10.2
		Reimbursable Items		168,638		148,330	13.7
		Total Non-Interest Income		1,009,628		911,402	10.8
		Non-Interest Expense:
		Personnel Expense		461,605		398,425	15.9
		Occupancy & Equipment Expense		197,195		175,473	12.4
		Other Non-Interest Expense		218,770		202,623	8.0
		Non-Interest Expense before Reimbursable Items		877,570		776,521	13.0
		Reimbursable Items		168,638		148,330	13.7
		Total Non-Interest Expense		1,046,208		924,851	13.1
		Minority Interest in Consolidated Subsidiaries		20,905		18,504	13.0
		Income Before Taxes		454,071		389,868	16.5
		Income Tax Expense		166,767		144,674	15.3
		Net Income	$	287,304		245,194	17.2
		Basic Earnings Per Share	$	0.90		0.79	14.5
		Diluted Earnings Per Share		0.90		0.78	14.8
		Dividends Declared Per Share		0.39		0.37	6.8
		Return on Assets		2.02	%	1.92	10	bp
		Return on Equity		18.25		18.12	13
		Average Shares Outstanding - Basic		318,236		310,890	2.4	%
		Average Shares Outstanding - Diluted		320,840		314,297	2.1
bp - change is measured as difference in basis points.
nm - not meaningful

Synovus													5 of 11
	INCOME STATEMENT
	(In thousands, except per share data)		2006				2005						2nd Quarter
			Second		First		Fourth		Third		Second		'06 vs. '05
			Quarter		Quarter		Quarter		Quarter		Quarter		Change
	Interest Income (Taxable Equivalent)	$	499,191		440,977		420,898		388,076		360,763		38.4	%
	Interest Expense		210,510		177,057		159,237		141,587		122,110		72.4
	Net Interest Income (Taxable Equivalent)		288,681		263,920		261,661		246,489		238,653		21.0
	Tax Equivalent Adjustment		1,478		1,484		1,566		1,664		1,588		(6.9)
	Net Interest Income		287,203		262,436		260,095		244,825		237,065		21.1
	Provision for Loan Losses		18,534		19,549		20,787		19,639		22,823		(18.8)
	Net Interest Income After Provision		268,669		242,887		239,308		225,186		214,242		25.4
	Non-Interest Income:
	Electronic Payment Processing Services		234,519		220,472		223,844		223,123		215,784		8.7
	Merchant Services		65,820		63,949		67,409		74,208		68,696		(4.2)
	Other Transaction Processing Services Revenue		46,463		45,125		45,544		44,030		45,324		2.5
	Service Charges on Deposits		29,409		26,712		28,572		28,598		28,004		5.0
	Fiduciary and Asset Management Fees		11,509		11,713		11,544		11,167		11,138		3.3
	Brokerage and Investment Banking Revenue		6,559		6,947		6,616		5,801		5,807		13.0
	Mortgage Banking Income		8,105		5,873		7,078		8,276		7,430		9.1
	Bankcard Fees		10,992		10,535		10,858		9,713		9,462		16.2
	Securities Gains (Losses)		(1,062)		(73)		(135)		-		327		nm
	Other Fee Income		10,038		8,950		9,377		8,217		7,834		28.1
	Other Non-Interest Income		9,263		9,172		6,689		12,599		7,325		26.5
	Non-Interest Income before Reimbursable Items		431,615		409,375		417,396		425,732		407,131		6.0
	Reimbursable Items		86,138		82,500		84,306		79,644		79,161		8.8
	Total Non-Interest Income		517,753		491,875		501,702		505,376		486,292		6.5
	Non-Interest Expense:
	Personnel Expense		233,847		227,758		224,251		213,695		208,596		12.1
	Occupancy & Equipment Expense		99,495		97,700		93,965		98,772		88,839		12.0
	Other Non-Interest Expense		112,934		105,836		110,608		113,300		110,015		2.7
	Non-Interest Expense before Reimbursable Items		446,276		431,294		428,824		425,767		407,450		9.5
	Reimbursable Items		86,138		82,500		84,306		79,644		79,161		8.8
	Total Non-Interest Expense		532,414		513,794		513,130		505,411		486,611		9.4
	Minority Interest in Consolidated Subsidiaries		11,165		9,740		9,571		9,306		9,672		15.4
	Income Before Taxes		242,843		211,228		218,309		215,845		204,251		18.9
	Income Tax Expense		90,046		76,722		81,049		81,853		75,791		18.8
	Net Income	$	152,797		134,506		137,260		133,992		128,460		18.9
	Basic Earnings Per Share	$	0.47		0.43		0.44		0.43		0.41		14.7
	Diluted Earnings Per Share		0.47		0.43		0.44		0.43		0.41		15.0
	Dividends Declared Per Share		0.20		0.20		0.18		0.18		0.18		6.8
	Return on Assets		2.07	%	1.96	%	2.00	%	2.01	%	1.98	%	9	bp
	Return on Equity		18.45		17.88		18.74		18.77		18.70		(25)
	Average Shares Outstanding - Basic		322,783		313,639		312,298		311,842		311,154		3.7	%
	Average Shares Outstanding - Diluted		325,421		316,208		315,280		315,336		314,691		3.4
bp - change is measured as difference in basis points.
nm - not meaningful

Synovus						6 of 11
Financial Services Segment
	INCOME STATEMENT		Six Months Ended
	(In thousands)		June 30,
			2006		2005	Change
	Interest Income (Taxable Equivalent)	$	940,153		693,716	35.5	%
	Interest Expense		391,043		227,956	71.5
	Net Interest Income (Taxable Equivalent)		549,110		465,760	17.9
	Tax Equivalent Adjustment		2,947		3,199	(7.9)
	Net Interest Income		546,163		462,561	18.1
	Provision for Loan Losses		38,083		42,106	(9.6)
	Net Interest Income After Provision		508,080		420,455	20.8
	Non-Interest Income:
	Service Charges on Deposits		56,123		54,994	2.1
	Fiduciary and Asset Management Fees		23,629		22,368	5.6
	Brokerage and Investment Banking Revenue		13,506		12,070	11.9
	Mortgage Banking Income		13,978		13,328	4.9
	Bankcard Fees		21,527		17,691	21.7
	Securities Gains (Losses)		(1,136)		598	nm
	Other Fee Income		18,988		15,319	23.9
	Other Non-Interest Income		25,902		18,848	37.4
	Total Non-Interest Income		172,517		155,216	11.1
	Non-Interest Expense:
	Personnel Expense		221,400		181,468	22.0
	Occupancy & Equipment Expense		48,333		43,259	11.7
	Other Non-Interest Expense		100,063		90,861	10.1
	Total Non-Interest Expense		369,796		315,588	17.2
	Income Before Taxes		310,801		260,083	19.5
	Income Tax Expense		110,656		93,263	18.7
	Net Income	$	200,145		166,820	20.0
	Return on Assets		1.47	%	1.37	10	bp
	Return on Equity		17.38		16.81	57
bp - change is measured as difference in basis points.
nm - not meaningful

Synovus													7 of 11
Financial Services Segment
	INCOME STATEMENT
	(In thousands)		2006				2005						2nd Quarter
			Second		First		Fourth		Third		Second		'06 vs. '05
			Quarter		Quarter		Quarter		Quarter		Quarter		Change
	Interest Income (Taxable Equivalent)	$	499,184		440,969		420,892		388,067		360,789		38.4	%
	Interest Expense		212,499		178,544		160,509		142,582		122,768		73.1
	Net Interest Income (Taxable Equivalent)		286,685		262,425		260,383		245,485		238,021		20.4
	Tax Equivalent Adjustment		1,471		1,476		1,558		1,655		1,585		(7.2)
	Net Interest Income		285,214		260,949		258,825		243,830		236,436		20.6
	Provision for Loan Losses		18,534		19,549		20,787		19,639		22,823		(18.8)
	Net Interest Income After Provision		266,680		241,400		238,038		224,191		213,613		24.8
	Non-Interest Income:
	Service Charges on Deposits		29,409		26,712		28,572		28,598		28,004		5.0
	Fiduciary and Asset Management Fees		11,720		11,910		11,728		11,357		11,324		3.5
	Brokerage and Investment Banking Revenue		6,559		6,947		6,616		5,801		5,807		13.0
	Mortgage Banking Income		8,105		5,873		7,078		8,276		7,430		9.1
	Bankcard Fees		10,992		10,535		10,858		9,713		9,462		16.2
	Securities Gains (Losses)		(1,062)		(73)		(135)		-		327		nm
	Other Fee Income		10,038		8,950		9,377		8,216		7,834		28.1
	Other Non-Interest Income		13,692		12,211		10,884		15,259		10,457		30.9
	Total Non-Interest Income		89,453		83,064		84,978		87,220		80,645		10.9
	Non-Interest Expense:
	Personnel Expense		113,951		107,449		95,670		93,084		90,721		25.6
	Occupancy & Equipment Expense		24,835		23,498		24,577		22,713		21,712		14.4
	Other Non-Interest Expense		52,064		47,999		49,768		45,356		45,320		14.9
	Total Non-Interest Expense		190,850		178,946		170,015		161,153		157,753		21.0
	Income Before Taxes		165,283		145,518		153,001		150,258		136,505		21.1
	Income Tax Expense		58,899		51,757		55,949		55,079		49,060		20.1
	Net Income	$	106,384		93,761		97,052		95,179		87,445		21.7
	Return on Assets		1.50	%	1.43	%	1.47	%	1.49	%	1.41	%	9	bp
	Return on Equity		17.42		17.17		18.30		18.34		17.41		1
bp - change is measured as difference in basis points.
nm - not meaningful

Synovus					8 of 11
	BALANCE SHEET		June 30, 2006	December 31, 2005	June 30, 2005
	(in thousands, except share data)
	ASSETS
	Cash and due from banks	$	887,154	880,886	811,781
	Interest earning deposits with banks		11,885	2,980	14,270
	Federal funds sold and securities purchased
	under resale agreements		203,631	68,922	344,958
	Trading account assets		46,939	27,322	-
	Mortgage loans held for sale		170,650	143,144	155,977
	Investment securities available for sale		3,137,486	2,958,320	2,756,365
	Loans, net of unearned income		23,661,964	21,392,347	20,479,834
	Allowance for loan losses		(313,694)	(289,612)	(277,527)
	Loans, net		23,348,270	21,102,735	20,202,307
	Premises and equipment, net		707,988	669,425	657,765
	Contract acquisition costs and computer software, net		406,793	431,849	450,352
	Goodwill, net		607,501	458,382	457,946
	Other intangible assets, net		52,894	44,867	49,232
	Other assets		945,897	831,840	812,341
	Total assets	$	30,527,088	27,620,672	26,713,294
	LIABILITIES AND SHAREHOLDERS' EQUITY
	Liabilities:
	Deposits:
	Non-interest bearing retail and commercial deposits	$	3,806,277	3,700,750	3,474,299
	Interest bearing retail and commercial deposits		16,124,042	14,798,845	13,962,080
	Total retail and commercial deposits		19,930,319	18,499,595	17,436,379
	Brokered time deposits		3,123,380	2,284,770	2,670,099
	Total deposits		23,053,699	20,784,365	20,106,478
	Federal funds purchased and other short-term
	borrowings		1,974,272	1,158,669	724,445
	Long-term debt		1,421,578	1,933,638	2,335,688
	Other liabilities		488,559	597,698	570,914
	Total liabilities		26,938,108	24,474,370	23,737,525
	Minority interest in consolidated subsidiaries		215,521	196,973	181,957
	Shareholders' equity:
	Common stock, par value $1.00 a share (1)		329,097	318,301	317,181
	Surplus		960,054	686,447	660,052
	Treasury stock (2)		(113,944)	(113,944)	(113,944)
	Unearned compensation		-	(3,126)	(2,942)
	Accumulated other comprehensive income (loss)		(54,783)	(29,536)	(517)
	Retained earnings		2,253,035	2,091,187	1,933,982
	Total shareholders' equity (3)		3,373,459	2,949,329	2,793,812
	Total liabilities and shareholders' equity	$	30,527,088	27,620,672	26,713,294

(1)	Common shares outstanding: 323,435,831; 312,639,737; and 311,519,262 at June 30, 2006, December 31, 2005, and June 30, 2005, respectively.
(2)	Treasury shares: 5,661,538 at June 30, 2006, December 31, 2005, and June 30, 2005.
(3)	Book value per share: $10.43; $9.43; and $8.97 at June 30, 2006, December 31, 2005, and June 30, 2005, respectively.

Synovus								9 of 11
AVERAGE BALANCES AND YIELDS/RATES
(Dollars in thousands)
			2006			2005
			Second		First	Fourth	Third	Second
			Quarter		Quarter	Quarter	Quarter	Quarter
Interest Earning Assets
Taxable Investment Securities		$	3,008,122		2,823,306	2,713,238	2,611,048	2,556,964
	Yield		4.21	%	4.08	3.87	3.75	3.78
Tax-Exempt Investment Securities		$	202,676		201,432	208,265	215,096	220,109
	Yield		6.73	%	6.86	6.90	7.08	6.87
Trading Account Assets		$	47,398		37,659	26,006	19,143	-
	Yield		5.72	%	7.42	6.97	3.84	-
Commercial Loans		$	19,746,392		18,377,498	17,881,828	17,342,794	17,090,893
	Yield		7.98	%	7.58	7.25	6.83	6.47
Consumer Loans		$	875,171		835,520	845,251	840,746	833,071
	Yield		8.09	%	7.89	7.87	7.83	7.37
Mortgage Loans		$	1,071,477		1,039,741	1,036,041	1,015,396	1,022,169
	Yield		6.82	%	6.67	6.44	6.31	6.47
Credit Card Loans		$	260,010		260,251	257,691	253,985	249,491
	Yield		10.81	%	10.81	10.19	10.07	10.03
Home Equity Loans		$	1,231,592		1,188,153	1,167,361	1,149,255	1,100,010
	Yield		7.69	%	7.30	6.85	6.32	5.92
Allowance for Loan Losses		$	(307,674)		(294,817)	(286,846)	(281,505)	(278,734)
Loans, Net		$	22,876,968		21,406,345	20,901,326	20,320,671	20,016,900
	Yield		8.06	%	7.67	7.35	6.95	6.61
Mortgage Loans Held for Sale		$	132,605		117,085	121,665	137,116	108,929
	Yield		7.08	%	6.61	6.48	6.54	6.41
Federal Funds Sold and Time Deposits
with Banks		$	139,924		118,772	119,606	135,735	133,399
	Yield		5.07	%	4.42	4.26	3.55	3.10
Total Interest Earning Assets		$	26,407,692		24,704,601	24,090,106	23,438,809	23,036,301
	Yield		7.58	%	7.23	6.94	6.58	6.28
Interest Bearing Liabilities
Interest Bearing Demand Deposits		$	3,040,292		3,004,244	2,989,754	2,939,524	2,990,725
	Rate		1.81	%	1.63	1.39	1.25	1.12
Money Market Accounts		$	6,196,865		5,800,154	5,619,551	5,421,961	4,968,113
	Rate		4.00	%	3.55	3.13	2.75	2.31
Savings Deposits		$	573,776		535,475	534,533	561,550	568,279
	Rate		0.69	%	0.47	0.40	0.38	0.35
Time Deposits Under $100,000		$	2,738,528		2,501,504	2,408,591	2,318,085	2,249,590
	Rate		3.92	%	3.55	3.28	2.99	2.71
Time Deposits Over $100,000 (less brokered
time deposits)		$	3,362,304		3,067,094	2,864,382	2,700,297	2,534,846
	Rate		4.44	%	4.01	3.67	3.35	3.04
Total Interest Bearing Core Deposits			15,911,765		14,908,471	14,416,811	13,941,417	13,311,553
	Rate		3.54	%	3.15	2.80	2.50	2.16
Brokered Time Deposits		$	2,740,674		2,364,383	2,443,105	2,611,091	2,689,079
	Rate		4.57	%	4.24	3.89	3.52	3.21
Total Interest Bearing Deposits		$	18,652,438		17,272,854	16,859,916	16,552,508	16,000,632
	Rate		3.69	%	3.30	2.96	2.66	2.34
Federal Funds Purchased and Other
Short-Term Borrowings		$	1,772,113		1,530,099	939,008	687,055	1,255,755
	Rate		4.76	%	4.28	3.72	3.03	2.75
Long-Term Debt		$	1,586,586		1,774,804	2,184,538	2,302,328	1,981,235
	Rate		4.42	%	4.62	4.44	4.34	4.01
Total Interest Bearing Liabilities		$	22,011,138		20,577,757	19,983,462	19,541,891	19,237,622
	Rate		3.83	%	3.48	3.16	2.87	2.54
Non-Interest Bearing Demand Deposits		$	3,511,554		3,443,867	3,509,219	3,423,622	3,429,813
Shareholders' Equity		$	3,321,397		3,050,256	2,906,223	2,832,059	2,755,510
Total Assets		$	29,563,064		27,792,577	27,164,366	26,505,937	26,102,816
Net Interest Margin			4.39	%	4.32	4.32	4.18	4.15

Synovus							10 of 11
LOANS OUTSTANDING AND NONPERFORMING LOANS COMPOSITION
(Dollars in thousands)
			Loans as a %			Total	Nonperforming Loans
			of Total Loans			Nonperforming	as a % of Total
Loan Type		Total Loans	Outstanding			Loans	Nonperforming Loans
Commercial Real Estate
Multi-Family	$	528,278	2.2	%	$	214	0.2
Hotels		674,971	2.9			1,485	1.7
Office Buildings		850,826	3.6			3,928	4.4
Shopping Centers		692,452	2.9			-	-
Commercial Development		942,220	4.0			1,795	2.0
Other Investment Property		409,371	1.7			74	0.1
Total Investment Properties		4,098,118	17.3			7,496	8.4
1-4 Family Construction		2,120,870	9.0			2,349	2.6
1-4 Family Perm / Mini-Perm		1,180,088	5.0			5,438	6.1
Residential Development		1,882,508	8.0			1,293	1.5
Total 1-4 Family Properties		5,183,466	21.9			9,080	10.2
Land Acquisition		1,205,548	5.1			4,934	5.6
Total Investment-Related Real Estate		10,487,132	44.3			21,510	24.2
Owner-Occupied		2,940,952	12.4			10,047	11.3
Other Property		1,221,842	5.2			5,053	5.7
Total Commercial Real Estate		14,649,926	61.9			36,610	41.2
Commercial & Industrial		5,547,533	23.4			43,291	48.8
Consumer		3,516,804	14.9			8,904	10.0
Unearned Income		(52,299)	(0.2)			-	-
Total	$	23,661,964	100.0	%	$	88,805	100.0

LOANS OUTSTANDING BY TYPE COMPARISON
(Dollars in thousands)
		Total Loans		2Q06 vs. 4Q05				2Q06 vs. 2Q05
Loan Type		June 30, 2006	December 31, 2005	% change (1) (2)			June 30, 2005	% change (2)
Commercial Real Estate
Multi-Family	$	528,278	527,710	0.2	%	$	526,820	0.3	%
Hotels		674,971	680,301	(1.6)			804,316	(16.1)
Office Buildings		850,826	747,493	27.9			786,262	8.2
Shopping Centers		692,452	656,949	10.9			628,701	10.1
Commercial Development		942,220	867,217	17.9			803,494	17.3
Other Investment Property		409,371	372,911	19.7			330,992	23.7
Total Investment Properties		4,098,118	3,852,581	12.9			3,880,585	5.6
1-4 Family Construction		2,120,870	1,552,338	73.9			1,372,556	54.5
1-4 Family Perm / Mini-Perm		1,180,088	1,095,155	15.6			1,087,763	8.5
Residential Development		1,882,508	1,496,436	52.0			1,219,186	54.4
Total 1-4 Family Properties		5,183,466	4,143,929	50.6			3,679,505	40.9
Land Acquisition		1,205,548	1,049,041	30.1			913,488	32.0
Total Investment-Related Real Estate		10,487,132	9,045,551	32.1			8,473,578	23.8
Owner-Occupied		2,940,952	2,699,431	18.0			2,335,195	25.9
Other Property		1,221,842	1,115,094	19.3			1,202,920	1.6
Total Commercial Real Estate		14,649,926	12,860,076	28.1			12,011,693	22.0
Commercial & Industrial		5,547,533	5,231,150	12.2			5,210,170	6.5
Consumer		3,516,804	3,349,208	10.1			3,301,736	6.5
Unearned Income		(52,299)	(48,087)	17.7			(43,765)	19.5
Total	$	23,661,964	21,392,347	21.4	%	$	20,479,834	15.5	%

(1)

Percentage change is annualized.

(2)

The percentage change comparison to prior periods is impacted by the acquisitions of Riverside Bankshares, Inc. (Riverside) and of Banking Corporation of Florida (First Florida), which were completed on March 31, 2006, respectively. Riverside and First Florida contributed approximately $482 million and $346 million, respectively, in total loans. Excluding the impact of Riverside and First Florida, the year-to-date annualized growth is 13.6% and the year-over-year growth is 11.5%.

Synovus								11 of 11
	CREDIT QUALITY DATA
	(Dollars in thousands)		2006		2005			2nd Quarter
			Second Quarter	First Quarter	Fourth Quarter	Third Quarter	Second Quarter	'06 vs. '05 Change
	Nonperforming Loans	$	88,805	80,061	82,175	85,571	79,511	11.7	%
	Other Real Estate		25,634	20,357	16,500	16,951	24,325	5.4
	Nonperforming Assets		114,439	100,418	98,675	102,522	103,836	10.2
	Allowance for Loan Losses		313,694	300,866	289,612	283,557	277,527	13.0
	Net Charge-Offs - Quarter		9,528	14,388	14,732	13,608	19,020	(49.9)
	Net Charge-Offs - YTD		23,916	14,388	58,665	43,933	30,325	(21.1)
	Net Charge-Offs / Average Loans - Quarter		0.17	0.27	0.28	0.26	0.37
	Net Charge-Offs / Average Loans - YTD		0.21	0.27	0.29	0.29	0.30
	Nonperforming Loans / Loans & ORE		0.38	0.36	0.38	0.41	0.39
	Nonperforming Assets / Loans & ORE		0.48	0.45	0.46	0.49	0.51
	Allowance / Loans		1.33	1.34	1.35	1.36	1.36
	Allowance / Nonperforming Loans		353.24	375.79	352.43	331.37	349.04
	Allowance / Nonperforming Assets		274.11	299.61	293.50	276.58	267.27
	Past Due Loans over 90 days		19,340	17,376	16,023	16,013	17,163
	As a Percentage of Loans Outstanding		0.08	0.08	0.07	0.08	0.08
	Total Past Dues		111,464	114,744	93,807	103,005	120,224
	As a Percentage of Loans Outstanding		0.47	0.51	0.44	0.49	0.59

REGULATORY CAPITAL RATIOS (1)
(Dollars in thousands)
		June 30, 2006		December 31, 2005	June 30, 2005
Tier 1 Capital	$	3,000,714		2,660,704	2,492,549
Total Risk-Based Capital		4,064,409		3,700,315	3,520,075
Tier 1 Capital Ratio		10.40	%	10.23	9.96
Total Risk-Based Capital Ratio		14.09		14.23	14.07
Leverage Ratio		10.39		9.99	9.74

(1) June 30, 2006 information is preliminary.