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

October 23, 2008

Date of Report

(Date of Earliest Event Reported)

Synovus Financial Corp.

(Exact Name of Registrant as Specified in its Charter)

Georgia	1-10312	58-1134883
(State of Incorporation)	(Commission File Number)	(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:

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

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

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

o 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 October 23, 2008, Synovus Financial Corp. (the “Company”) issued a press release announcing the Company’s financial results for the three and nine month periods ended September 30, 2008.

Pursuant to General Instruction F to Current Report on Form 8-K, the press release is attached to this Current Report as Exhibit 99.1 and only those portions of the press release related to the historical results of operations of the Company for the three and nine month periods ended September 30, 2008 are incorporated into this Item 2.02 by reference. The information contained in this Item 2.02, including the information set forth in the press release filed as Exhibit 99.1 to, and incorporated in, this Current Report is being “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in Exhibit 99.1 furnished pursuant to this Item 2.02 shall not be incorporated by reference into any registration statement or other documents pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or into any filing or other document pursuant to the Exchange Act except as otherwise expressly stated in any such filing.

Item 7.01 Regulation FD Disclosure

On October 23, 2008, the Company made available the supplemental information (the “Supplemental Information”) prepared for use with the press release. The investor call and webcast will be held at 4:30 p.m., ET, on October 23, 2008.

Pursuant to General Instruction F to Current Report on Form 8-K, the Supplemental Information is attached to this Current Report as Exhibit 99.2 and incorporated into this Item 7.01 by reference. The information contained in this Item 7.01, including the information set forth in the Supplemental Information is filed as Exhibit 99.2 to, and incorporated in, this Current Report, is being “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that Section. The information in Exhibit 99.2 furnished pursuant to this Item 7.01 shall not be incorporated by reference into any registration statement or other documents pursuant to the Securities Act or into any filing or other document pursuant to the Exchange Act except as otherwise expressly stated in any such filing.

2

Item 9.01 Financial Statements and Exhibits

     (d)      Exhibits

Exhibit No.	Description
99.1	Synovus press release dated October 23, 2008
99.2	Supplemental Information prepared for use with the press release

3

Signature

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

	SYNOVUS FINANCIAL CORP. (“Synovus”)
Dated: October 23, 2008	By:	/s/ Samuel F. Hatcher
		Executive Vice President,
		General Counsel and Secretary

4

EX-99.1

Exhibit 99.1

News Release

     For Immediate Release

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

Synovus Reports Net Loss of $0.08 per Share for Third Quarter 2008

Columbus, Ga., October 23, 2008 Synovus reported a net loss for the third quarter of 2008 of $26.9 million, or $0.08 per share, compared to income from continuing operations of $83.6 million, or $0.25 per diluted share for the third quarter of 2007.

     “Credit issues, along with a weakening economy, created the need for aggressive actions to appropriately value, write down and dispose of problem credits,” said Richard Anthony, Chairman and CEO. “Additionally, we have grown our deposits to enhance our liquidity position and plan to participate in the capital purchase program announced by the Treasury Department on October 13, 2008, which could add approximately $300 to $900 million of Tier 1 capital to our balance sheet. These actions will further strengthen Synovus for the future.”

     The ratio of nonperforming assets to loans, impaired loans held for sale, and other real estate was 3.58%, as of September 30, 2008, compared to 3.00% last quarter and 1.16% in the third quarter of 2007. Nonperforming loans were $770 million as of September 30, 2008, an increase of $143 million from the second quarter of 2008. The Atlanta market represents 56% of Synovus’ total nonperforming loans in the residential construction and development portfolios. The net charge-off ratio for the quarter was 1.53% compared to 1.04% last quarter and 0.51% in the third quarter of 2007. During the quarter, Synovus recognized an $18 million loss on $70 million of non-performing assets after identifying these assets for loan sales or auctions. Two auctions were completed in the quarter with proceeds of $28 million. Another auction and two loan sales are scheduled to close in November which are expected to reduce nonperforming assets by $24 million. The allowance for loan losses was 1.68% of loans as of September 30, 2008, compared to 1.52% as of June 30, 2008 and 1.38% as of September 30, 2007. The provision expense for the quarter was $151.4 million, compared to $93.6 million last quarter, and $58.8 million in the third quarter of 2007. The provision for loan losses covered net charge-offs by 144% for the quarter.

     During the third quarter, Synovus reassessed its largest loans, representing approximately 14% of the entire portfolio. While all except for one of these loans were performing, Synovus concluded that the financial condition of certain borrowers had weakened. This resulted in the downgrade of certain credits and a corresponding increase in provision expense of $40 million in the quarter.

     In the current environment, Synovus has focused on growing deposits faster than loans. Total deposits grew 27.8% (annualized) on a sequential quarter basis, while Federal funds purchased were reduced by 88.6% enhancing Synovus’ overall liquidity position. Total core deposits (excludes brokered deposits) grew 4.3% (annualized) on a sequential quarter basis.

Post Office Box 120 / Columbus, GA 31902
www.synovus.com

Synovus Reports Net Loss of $0.08 per Share for Third Quarter/p. 2

Total loans grew 2.9% (annualized) on a sequential quarter basis. The net interest margin for the quarter was 3.42%, compared to 3.57% last quarter and 3.97% in the third quarter of 2007. Net interest income for the third quarter was $267.8 million compared to $290.8 million in the third quarter of 2007.

     Non-interest expense was $258.8 million for the quarter, up $46.4 million compared to the third quarter last year. The increase consists primarily of a $41.5 million increase in losses and costs related to foreclosed real estate (which includes a $17 million loss related to the aforementioned auctions), $9.0 million in restructuring charges associated with Project Optimus, and a $3.4 million increase in FDIC insurance and other regulatory fees. Core non-interest expense was down from the same period last year primarily due to a headcount reduction of 274 during the third quarter of 2008.

     Shareholders’ equity as of September 30, 2008 was $3.39 billion, which represented a strong 9.87% of quarter-end assets. Total assets as of September 30 were $34.4 billion, an increase of 6.7% when compared to total assets from continuing operations a year ago. As of September 30, 2008, the Tier 1 Capital Ratio was 8.83%, the Total Risk-Based Capital Ratio was 12.22%, and the Tangible Common Equity to Tangible Assets Ratio was 8.50%.

     During the three months ended June 30, 2008, Synovus conducted its annual goodwill impairment evaluation. As a result of this evaluation, Synovus recognized a goodwill impairment charge of $27 million (pre-tax and after-tax) on one of its reporting units. As was previously disclosed, the goodwill impairment charge was preliminary and subject to the finalization of the Step 2 calculation. Synovus expects to complete this process prior to the filing of its Form 10-Q for the three months ended September 30, 2008. Accordingly, any additional impairment charge would be reflected in the financial results for the three months ended September 30, 2008. Although any goodwill impairment charge would further reduce reported GAAP earnings, it would be non-cash in nature and would not affect Synovus’ liquidity or regulatory capital ratios.

     On October 15, 2008, Synovus received a notification from Visa Inc. stating that it had reached an agreement in principle with Discover to settle litigation pending since 2004. The specific terms of the settlement are not yet available. Synovus and other member banks have obligations to indemnify Visa, on a pro-rata basis, for the losses related to this litigation. As of September 30, 2008, Synovus has accrued $3.8 million as an estimate of its indemnification obligations related to this litigation. The expense related to this liability was recognized in the fourth quarter of 2007. This amount assumed a total settlement by Visa of $650 million. At this time, Synovus has not yet determined the impact of the settlement on its accrued liability at September 30, 2008.

     Anthony concluded, “As we look out into the fourth quarter of 2008, we believe that the third quarter elevated level of charge-offs and loan loss provision should decrease and should drive improved performance in the quarter as compared to the third quarter. In looking out to 2009, based upon our assumptions regarding current economic conditions and credit conditions persisting throughout 2009, we believe that the 2009 charge-off ratio will be in the 1.15% to 1.30% range.”

     Synovus will host an earnings highlights conference call at 4:30 pm EDT, on October 23, 2008. Shareholders and other interested persons may listen to this conference call via simultaneous Internet broadcast at www.synovus.com by clicking on the “Live Webcast” icon. You may download RealPlayer or Windows Media Player (free

Post Office Box 120 / Columbus, GA 31902
www.synovus.com

Synovus Reports Net Loss of $0.08 per Share for Third Quarter/p. 3

download available) prior to accessing the actual call or the replay. The replay will be archived for 12 months and will be available 30-45 minutes after the call.

     Synovus (NYSE: “SNV”) is a financial services holding company with $34 billion in assets based in Columbus, Georgia. Synovus provides commercial and retail banking, as well as investment services, to customers through 34 banks, 440 ATMs, and other Synovus offices in Georgia, Alabama, South Carolina, Florida and Tennessee. The company focuses on its unique decentralized customer delivery model, position in high-growth Southeast markets and commitment to being a great place to work to ensure the delivery of unparalleled customer experiences. See Synovus on the Web at www.synovus.com.

     This press release and certain of our other filings with the Securities and Exchange Commission contains statements that constitute “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, our expectations that we we will be able to participate in the U.S. Treasury’s capital purchase program and the level of our participation, expected reductions in non-performing assets as a result of asset sales, any additional impact to our third quarter earnings from the completion of our annual goodwill impairment evaluation or the settlement of the Visa litigation, and our expectations regarding our charge-offs and charge-off ratio, loan loss provision, and credit during the remainder of 2008 and 2009 and the assumptions underlying our expectations. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. A number of important factors could cause actual results to differ materially from those contemplated by the forward- looking statements in this press release and our filings with the Securities and Exchange Commission. Many of these factors are beyond Synovus’ ability to control or predict. Factors that could cause actual results to differ materially from those contemplated in this press release and our filings with the Securities and Exchange Commission include: (1) further deteriorations in credit quality, particularly in residential construction and development loans, may continue to result in increased non-performing assets and credit losses, which will adversely impact us; (2) declining values of residential real estate may result in further write-downs of assets, which may increase our credit losses and negatively affect our financial results; (3) our ability to manage fluctuations in the value of our assets and liabilities to maintain sufficient capital and liquidity to support our operations; (4) continuing deteriorations in general economic conditions and conditions in the financial markets; (5) inadequacy of our allowance for loan losses, or the risk that the allowance may prove to be inadequate or may be negatively affected by credit risk exposures; (6) changes in the interest rate environment which may increase funding costs and reduce earning assets yields, thus reducing margins; (7) changes in accounting standards, particularly those related to determination of allowance for loan losses and fair value of assets; (8) slower than anticipated rates of growth in non-interest income; (9) impact of the Emergency Economic Stabilization Act and other recent and proposed changes in the regulation of banks and financial institutions; (10) restrictions or limitations on access to funds from subsidiaries, thereby restricting our ability to make payments on our obligations or dividend payments; (11) risks associated with litigation; (12) inability to satisfy all conditions required to participate in the U.S. Treasury’s capital participation program or to otherwise access the capital markets on terms that are satisfactory; (13) the volatility of our stock price; and (14) the other factors set forth in Synovus’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise.

###

Post Office Box 120 / Columbus, GA 31902
www.synovus.com

EX-99.2

Exhibit 99.2

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Synovus

INCOME STATEMENT DATA
(Unaudited)
(In thousands, except share data)

	Nine Months Ended
	September 30,
	2008			2007		Change
Interest income (taxable equivalent)	$	1,420,730			1,688,474		(15.9	)%
Interest expense		597,375			822,354		(27.4	)
Net interest income (taxable equivalent)		823,355			866,120		(4.9	)
Tax equivalent adjustment		3,487			3,857		(9.6	)
Net interest income		819,868			862,263		(4.9	)
Provision for loan losses		336,016			99,566		237.5
Net interest income after provision		483,852			762,697		(36.6	)
Non-interest income:
Service charges on deposit accounts		82,594			83,157		(0.7	)
Fiduciary and asset management fees		37,612			37,652		(0.1	)
Brokerage and investment banking revenue		25,591			23,381		9.5
Mortgage banking income		18,323			20,876		(12.2	)
Bankcard fees		39,788			35,370		12.5
Net gains on sales of available for sale investment securities		—			891	nm
Other fee income		30,039			29,749		1.0
Proceeds from Visa IPO		38,542			—	nm
Other non-interest income		74,141			58,953		25.8
Total non-interest income		346,630			290,029		19.5
Non-interest expense:
Salaries and other personnel expense		346,342			345,690		0.2
Net occupancy and equipment expense		93,188			82,914		12.4
FDIC insurance and other regulatory fees		18,210			7,239		151.6
Foreclosed real estate		64,764			2,812	nm
Losses on impaired loans held for sale		9,944			—	nm
Visa litigation (recovery) expense		(17,430	)		12,000		(245.3	)
Goodwill impairment		27,000			—	nm
Professional fees		20,311			14,948		35.9
Restructuring charges		13,299			—	nm
Other operating expense		150,559			139,281		8.1
Total non-interest expense		726,187			604,884		20.1
Minority interest in consolidated subsidiaries		6,347			—	nm
Income from continuing operations before income taxes		97,948			447,842		(78.1	)
Income tax expense		31,772			158,050		(79.9	)
Income from continuing operations		66,176			289,792		(77.2	)
Income from discontinued operations, net of income taxes and minority interest (1)		—			154,654	nm
Net income	$	66,176			444,446		(85.1	)%
Basic earnings per share
Income from continuing operations	$	0.20			0.89		(77.4	)%
Net income		0.20			1.36		(85.2	)
Diluted earnings per share
Income from continuing operations		0.20			0.88		(77.3	)
Net income		0.20			1.35		(85.2	)
Cash dividends declared per share		0.40			0.62		(35.0	)
Return on average assets from continuing operations*		0.26			1.24	(98		)bp
Return on average assets *		0.26			1.82		(156	)
Return on average equity from continuing operations*		2.58			9.96		(738	)
Return on average equity *		2.58			15.28		(1,270	)
Average shares outstanding — basic		329,195			326,443		0.8	%
Average shares outstanding — diluted		331,317			330,001		0.4

bp — change is measured as difference in basis points.

nm — not meaningful

* — ratios are annualized

(1) On December 31, 2007, Synovus Financial Corp. completed the spin-off of its shares of Total System Services, Inc. (“TSYS”) common stock to Synovus shareholders. In accordance with the provisions of Statement of Financial Accounting Standards (SFAS) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” and SFAS No. 146, “Accounting for Costs Associated with Exit or Disposal Activities,” the historical consolidated results of operations of TSYS, as well as all costs recorded by Synovus Financial Corp. associated with the spin-off of TSYS, are now presented as a discontinued operation. Additionally, discontinued operations for the nine months ended September 30, 2007 includes a $4.2 million after-tax gain related to the transfer of Synovus’ proprietary mutual funds to a non-affiliated third party.

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Synovus

INCOME STATEMENT DATA

(Unaudited)
(In thousands, except per share data)

	2008									2007				3rd Quarter
	Third			Second			First			Fourth		Third		‘08 vs. ’07
	Quarter			Quarter			Quarter			Quarter		Quarter		Change
Interest income (taxable equivalent)	$	456,400			459,273			505,057			554,989		573,545		(20.4	)%
Interest expense		187,425			184,718			225,232			267,102		281,478		(33.4	)
Net interest income (taxable equivalent)		268,975			274,555			279,825			287,887		292,067		(7.9	)
Tax equivalent adjustment		1,177			1,134			1,176			1,202		1,228		(4.2	)
Net interest income		267,798			273,421			278,649			286,685		290,839		(7.9	)
Provision for loan losses		151,351			93,616			91,049			70,642		58,770		157.5
Net interest income after provision		116,447			179,805			187,600			216,043		232,069		(49.8	)
Non-interest income:
Service charges on deposit accounts		28,132			26,070			28,391			28,985		28,736		(2.1	)
Fiduciary and asset management fees		12,095			12,898			12,621			13,110		12,524		(3.4	)
Brokerage and investment banking revenue		7,898			9,206			8,487			8,598		8,123		(2.8	)
Mortgage banking income		4,476			5,686			8,161			6,130		5,955		(24.8	)
Bankcard fees		13,371			14,198			12,218			12,400		11,923		12.1
Net gains on sales of available for sale investment securities		—			—			—			90		186	nm
Other fee income		8,773			10,081			11,185			9,559		9,910		(11.5	)
Other non-interest income		24,210			29,559			20,370			20,126		28,837		(16.0	)
Proceeds from Visa IPO		—			—			38,542			—		—	nm
Total non-interest income		98,955			107,698			139,975			98,998		106,194		(6.8	)
Non-interest expense:
Salaries and other personnel expense		114,535			109,676			122,130			109,468		115,941		(1.2	)
Net occupancy and equipment expense		31,852			31,126			30,211			29,976		28,055		13.5
FDIC insurance and other regulatory fees		5,960			6,172			6,079			3,108		2,541		134.6
Foreclosed real estate		43,205			13,677			7,881			12,924		1,662	nm
Losses on impaired loans held for sale		—			9,944			—			—		—
Visa litigation (recovery) expense		—			—			(17,430	)		24,800		12,000	nm
Goodwill impairment		—			27,000			—			—		—	nm
Professional fees		6,916			8,454			4,940			6,307		4,703		47.1
Restructuring charges		9,048			4,251			—			—		—	nm
Other operating expense		47,334			55,663			47,563			48,626		47,523		(0.4	)
Total non-interest expense		258,850			265,963			201,374			235,209		212,425		21.9
Minority interest in consolidated subsidiaries		4,650			138			1,559			—		—	nm
Income (loss) from continuing operations before income taxes		(48,098	)		21,402			124,642			79,832		125,838		(138.2	)
Income tax (benefit) expense		(21,180	)		9,302			43,648			26,690		42,261		(150.1	)
Income (loss) from continuing operations		(26,918	)		12,100			80,994			53,142		83,577		(132.2	)
Income from discontinued operations, net of income taxes and minority interest (1)		—			—			—			28,717		51,366	nm
Net income (loss)	$	(26,918	)		12,100			80,994			81,859		134,943		(119.9	)%
Basic earnings per share
Income (loss) from continuing operations	$	(0.08	)		0.04			0.25			0.16		0.26		(132.0	)%
Net income (loss)		(0.08	)		0.04			0.25			0.25		0.41		(119.8	)
Diluted earnings per share
Income (loss) from continuing operations		(0.08	)		0.04			0.24			0.16		0.25		(132.3	)
Net income (loss)		(0.08	)		0.04			0.24			0.25		0.41		(120.0	)
Cash dividends declared per share		0.06			0.17			0.17			0.21		0.21		(70.7	)
Return on average assets from continuing operations*		(0.31	)%		0.14	%		0.99	%		0.65		1.05	(136		)bp
Return on average assets *		(0.31	)		0.14			0.99			0.96		1.62		(193	)
Return on average equity from continuing operations*		(3.18	)		1.40			9.43			5.17		8.25		(1,143	)
Return on average equity *		(3.18	)		1.40			9.43			7.97		13.32		(1,650	)
Average shares outstanding — basic		329,438			329,173			328,970			328,052		327,215		0.7	%
Average shares outstanding — diluted		329,438			331,418			331,719			329,453		330,160		nm

bp — change is measured as difference in basis points.

nm — not meaningful

* — ratios are annualized

(1) On December 31, 2007, Synovus Financial Corp. completed the spin-off of its shares of Total System Services, Inc. (“TSYS”) common stock to Synovus shareholders. In accordance with the provisions of Statement of Financial Accounting Standards (SFAS) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” and SFAS No. 146, “Accounting for Costs Associated with Exit or Disposal Activities,” the historical consolidated results of operations of TSYS, as well as all costs recorded by Synovus Financial Corp. associated with the spin-off of TSYS, are now presented as a discontinued operation.

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Synovus

BALANCE SHEET DATA
(Unaudited)
(In thousands, except share data)

	September 30, 2008			December 31, 2007			September 30, 2007
ASSETS
Cash and due from banks	$	497,419			682,583			642,882
Interest earning deposits with banks		2,845			10,950			4,318
Federal funds sold and securities purchased under resale agreements		269,600			76,086			113,654
Trading account assets		101,889			17,803			33,009
Mortgage loans held for sale		105,068			153,437			165,837
Impaired loans held for sale		13,554			—			—
Investment securities available for sale		3,831,126			3,666,974			3,628,766
Loans, net of unearned income		27,647,983			26,498,585			25,774,656
Allowance for loan losses		(463,836	)		(367,613	)		(356,887	)
Loans, net		27,184,147			26,130,972			25,417,769
Premises and equipment, net		595,646			547,437			527,414
Goodwill		492,138			519,138			519,138
Other intangible assets, net		23,579			28,007			29,947
Other assets		1,233,234			1,185,065			1,112,407
Assets of discontinued operations		—			—			1,490,671
Total assets	$	34,350,245			33,018,452			33,685,812
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Non-interest bearing retail and commercial deposits	$	3,479,314			3,472,423			3,566,749
Interest bearing retail and commercial deposits		18,194,976			17,734,851			17,744,117
Total retail and commercial deposits		21,674,290			21,207,274			21,310,866
Brokered deposits		6,174,573			3,752,542			3,325,430
Total deposits		27,848,863			24,959,816			24,636,296
Federal funds purchased and other short-term liabilities		674,501			2,319,412			2,581,087
Long-term debt		2,120,546			1,890,235			1,680,478
Other liabilities		284,220			407,399			392,697
Liabilities of and minority interest in discontinued operations (1)		—			—			340,898
Total liabilities		30,928,130			29,576,862			29,631,456
Minority interest in consolidated subsidiaries		30,606			—			—
Shareholders’ equity:
Common stock, par value $1.00 a share (2)		335,972			335,529			334,095
Additional paid-in capital		1,114,142			1,101,209			1,107,653
Treasury stock (3)		(114,117	)		(113,944	)		(113,944	)
Accumulated other comprehensive income		36,253			31,439			23,339
Retained earnings		2,019,259			2,087,357			2,703,213
Total shareholders’ equity		3,391,509			3,441,590			4,054,356
Total liabilities and shareholders’ equity	$	34,350,245			33,018,452			33,685,812

(1)	On December 31, 2007, Synovus Financial Corp. completed the spin-off of its shares of Total System Services, Inc. (“TSYS”) common stock to Synovus shareholders. In accordance with Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” all prior period assets and liabilities of TSYS are presented as a discontinued operation.
(2)	Common shares outstanding: 330,294,672; 329,867,944 and 328,433,944 at September 30, 2008, December 31, 2007, and September 30, 2007, respectively.
(3)	Treasury shares: 5,676,830 at September 30, 2008; 5,661,538 at December 31, 2007 and September 30, 2007.

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AVERAGE BALANCES AND YIELDS/RATES *
(Unaudited)
(Dollars in thousands)

	2008									2007
	Third			Second			First			Fourth			Third
	Quarter			Quarter			Quarter			Quarter			Quarter
Interest Earning Assets
Taxable Investment Securities	$	3,670,315			3,556,381			3,485,370			3,496,843			3,495,017
Yield		4.91	%		5.00			5.01			4.90			4.82
Tax-Exempt Investment Securities	$	128,241			137,606			154,408			164,587			170,211
Yield (taxable equivalent)		6.74	%		7.34			7.00			6.82			6.72
Trading Account Assets	$	30,584			26,531			36,652			29,698			56,217
Yield		6.77	%		5.88			6.96			7.05			7.15
Commercial Loans	$	23,302,028			23,183,128			22,763,954			22,157,460			21,820,687
Yield		5.78	%		5.96			6.79			7.69			8.13
Consumer Loans	$	1,006,685			966,111			931,644			928,942			915,847
Yield		7.34	%		7.53			7.86			8.05			8.17
Mortgage Loans	$	1,312,166			1,252,275			1,241,018			1,237,962			1,152,621
Yield		6.38	%		6.54			6.84			7.04			7.10
Credit Card Loans	$	292,239			291,143			296,428			285,410			277,445
Yield		8.72	%		8.60			9.65			10.26			10.96
Home Equity Loans	$	1,656,387			1,605,601			1,557,852			1,517,510			1,444,411
Yield		5.15	%		5.31			6.48			7.34			7.80
Allowance for Loan Losses	$	(422,331	)		(397,392	)		(381,695	)		(357,283	)		(335,406	)
Loans, Net	$	27,147,174			26,900,866			26,409,201			25,770,001			25,275,605
Yield		5.95	%		6.12			6.94			7.79			8.21
Mortgage Loans Held for Sale	$	108,873			157,049			121,806			108,044			176,448
Yield		6.91	%		5.86			5.57			6.12			6.91
Federal Funds Sold and Other Short-Term Investments	$	211,323			201,081			128,381			110,745			85,094
Yield		1.88	%		1.83			3.41			4.63			5.76
Total Interest Earning Assets	$	31,296,510			30,979,514			30,335,818			29,679,918			29,258,592
Yield		5.81	%		5.96			6.69			7.42			7.78
Interest Bearing Liabilities
Interest Bearing Demand Deposits	$	3,076,447			3,154,884			3,200,650			3,200,408			3,047,279
Rate		1.07	%		1.10			1.56			1.99			2.24
Money Market Accounts	$	6,771,080			6,826,724			7,017,644			7,502,063			7,421,900
Rate		2.19	%		2.15			2.98			3.92			4.40
Savings Deposits	$	457,526			461,970			448,581			454,204			479,479
Rate		0.25	%		0.25			0.28			0.35			0.48
Time Deposits Under $100,000	$	3,055,465			2,814,714			2,777,764			2,790,869			2,917,089
Rate		3.69	%		3.97			4.44			4.69			4.81
Time Deposits Over $100,000 (less brokered time deposits)	$	4,731,468			4,316,454			4,171,716			4,006,350			4,029,091
Rate		3.79	%		4.09			4.69			4.98			5.12
Total Interest Bearing Core Deposits	$	18,091,986			17,574,746			17,616,355			17,953,894			17,894,838
Rate		2.62	%		2.68			3.29			3.84			4.16
Brokered Money Market Accounts	$	1,271,113			1,082,805			854,385			467,346			476,377
Rate		2.27	%		2.54			3.50			4.89			5.34
Brokered Time Deposits	$	3,968,783			3,495,947			3,300,677			2,941,592			3,188,310
Rate		3.61	%		3.64			4.35			4.98			5.19
Total Interest Bearing Deposits	$	23,331,882			22,153,498			21,771,417			21,362,832			21,559,525
Rate		2.77	%		2.82			3.46			4.02			4.33
Federal Funds Purchased and Other Short-Term Liabilities	$	1,459,097			2,302,986			2,253,640			2,472,339			1,930,598
Rate		1.94	%		2.03			3.18			4.37			4.84
Long-Term Debt	$	2,119,321			2,048,213			1,930,412			1,819,198			1,660,788
Rate		3.32	%		3.44			4.21			5.08			5.32
Total Interest Bearing Liabilities	$	26,910,300			26,504,697			25,955,469			25,654,369			25,150,911
Rate		2.77	%		2.80			3.48			4.12			4.43
Non-Interest Bearing Demand Deposits	$	3,463,563			3,448,794			3,338,106			3,422,684			3,405,622
Net Interest Margin		3.42	%		3.57			3.71			3.86			3.97

*

Yields and rates are annualized.

(1)

On December 31, 2007, Synovus Financial Corp. completed the spin-off of its shares of Total System Services, Inc. (“TSYS”) common stock to Synovus shareholders. In accordance with the provisions of Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” the historical consolidated results of operations, assets, and liabilities of TSYS are now presented as a discontinued operation. Accordingly, the above earning assets, liabilities, yields, and cost of funds exclude the amounts related to TSYS due to the de-consolidation of TSYS.

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LOANS OUTSTANDING AND NONPERFORMING LOANS COMPOSITION
(Unaudited)
(Dollars in thousands)

	September 30, 2008
				Loans as a %			Total		Nonperforming Loans
				of Total Loans			Nonperforming		as a % of Total
Loan Type	Total Loans			Outstanding			Loans		Nonperforming Loans
Multi-Family	$	555,207			2.0	%	$	4,076		0.5	%
Hotels		830,981			3.0			635		0.1
Office Buildings		960,319			3.5			4,955		0.7
Shopping Centers		1,005,094			3.7			684		0.1
Commercial Development		912,073			3.3			13,330		1.7
Other Investment Property		948,253			3.4			487		0.1
Total Investment Properties		5,211,927			18.9			24,167		3.1
1-4 Family Construction		1,772,559			6.4			214,855		27.9
1-4 Family Perm / Mini-Perm		1,367,807			5.0			41,761		5.4
Residential Development		2,222,496			8.0			204,185		26.5
Total 1-4 Family Properties		5,362,862			19.4			460,801		59.8
Land Acquisition		1,560,734			5.6			83,066		10.8
Total Commercial Real Estate		12,135,523			43.9			568,034		73.7
Commercial, Financial, and Agricultural		6,841,197			24.7			106,288		13.8
Owner-Occupied		4,388,945			15.9			68,780		9.0
Total Commercial & Industrial		11,230,142			40.6			175,068		22.8
Home Equity		1,681,475			6.1			6,228		0.8
Consumer Mortgages		1,759,518			6.4			18,228		2.4
Credit card		291,162			1.1			—		—
Other Retail Loans		592,067			2.1			2,392		0.3
Total Retail		4,324,222			15.7			26,848		3.5
Unearned Income		(41,904	)		(0.2	)		—		—
Total	$	27,647,983			100.0	%	$	769,950		100.0	%

LOANS OUTSTANDING BY TYPE COMPARISON
(Unaudited)
(Dollars in thousands)

	Total Loans						3Q08 vs. 4Q07						3Q08 vs. 3Q07
Loan Type	September 30, 2008			December 31, 2007			% change (1)			September 30, 2007			% change
Multi-Family	$	555,207			452,163			30.4	%	$	449,814			23.4	%
Hotels		830,981			614,979			46.9			591,527			40.5
Office Buildings		960,319			953,093			1.0			880,478			9.1
Shopping Centers		1,005,094			834,025			27.4			739,333			35.9
Commercial Development		912,073			961,271			(6.8	)		935,802			(2.5	)
Other Investment Property		948,253			714,296			43.8			671,718			41.2
Total Investment Properties		5,211,927			4,529,827			20.1			4,268,672			22.1
1-4 Family Construction		1,772,559			2,238,925			(27.8	)		2,302,842			(23.0	)
1-4 Family Perm / Mini-Perm		1,367,807			1,273,843			9.9			1,216,481			12.4
Residential Development		2,222,496			2,311,459			(5.1	)		2,269,844			(2.1	)
Total 1-4 Family Properties		5,362,862			5,824,227			(10.6	)		5,789,167			(7.4	)
Land Acquisition		1,560,734			1,545,933			1.3			1,476,042			5.7
Total Commercial Real Estate		12,135,523			11,899,987			2.6			11,533,881			5.2
Commercial, Financial, and Agricultural		6,841,197			6,420,689			8.7			6,264,683			9.2
Owner-Occupied		4,388,945			4,226,707			5.1			4,156,535			5.6
Total Commercial & Industrial		11,230,142			10,647,396			7.3			10,421,218			7.8
Home Equity		1,681,475			1,543,701			11.9			1,478,694			13.7
Consumer Mortgages		1,759,518			1,667,924			7.3			1,620,730			8.6
Credit Card		291,162			291,149			—			280,192			3.9
Other Retail Loans		592,067			494,591			26.3			485,928			21.8
Total Retail		4,324,222			3,997,365			10.9			3,865,544			11.9
Unearned Income		(41,904	)		(46,163	)		(12.3	)		(45,987	)		(8.9	)
Total	$	27,647,983			26,498,585			5.8	%	$	25,774,656			7.3	%

(1) Percentage change is annualized.

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Synovus

CREDIT QUALITY DATA
(Unaudited)
(Dollars in thousands)

	2008							2007				3rd Quarter
	Third			Second		First		Fourth		Third		’08 vs. ’07
	Quarter			Quarter		Quarter		Quarter		Quarter		Change
Nonperforming Loans (1)	$	769,950			626,571		515,302		342,082		224,055		243.6	%
Impaired Loans Held for Sale (2)		13,554			6,365		42,270		—		—	NM
Other Real Estate		215,082			197,328		121,753		101,487		76,514		181.1
Nonperforming Assets		998,586			830,264		679,325		443,569		300,569		232.2
Allowance for Loan Losses		463,836			417,813		394,848		367,613		356,887		30.0
Net Charge-Offs — Quarter		105,328			70,652		63,813		59,916		33,013		219.1
Net Charge-Offs — YTD		239,793			134,465		63,813		117,055		57,139		319.7
Net Charge-Offs / Average Loans — Quarter (3)		1.53	%		1.04		0.95		0.91		0.51
Net Charge-Offs / Average Loans — YTD (3)		1.18			0.99		0.95		0.46		0.30
Nonperforming Loans / Loans		2.79			2.29		1.90		1.29		0.87
Nonperforming Assets / Loans, Impaired Loans Held for Sale & ORE		3.58			3.00		2.49		1.67		1.16
Allowance / Loans		1.68			1.52		1.46		1.39		1.38
Allowance / Nonperforming Loans		60.24			66.68		76.62		107.46		159.29
Allowance / Nonperforming Loans (excluding impaired loans for which there is no related allowance for loan losses (4))		202.29			206.82		220.89		337.49		334.42
Past Due Loans over 90 days and Still Accruing		49,868			39,614		43,009		33,663		22,667		120.0	%
As a Percentage of Loans Outstanding		0.18			0.14		0.16		0.13		0.09
Total Past Dues Loans and Still Accruing		403,180			365,046		377,999		270,496		230,035		75.3
As a Percentage of Loans Outstanding		1.46			1.33		1.39		1.02		0.89

(1)	Includes $540.7 million, $424.5 million, $336.5 million, $233.2 million, and $117.3 million at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, and September 30, 2007, respectively, of loans considered to be impaired (consisting of collateral dependent loans) for which there is no related allowance for loan losses determined in accordance with SFAS No. 114, “Accounting by Creditors for Impairment of a Loan.” The allowance on these loans is zero because the estimated losses on collateral dependent impaired loans have been charged-off, at the time these loans were considered to be impaired.
(2)	Represent impaired loans that are intended to be sold. Held for sale loans are carried at the lower of cost or fair value.
(3)	Ratio is annualized.
(4)	Impaired loans for which there is no related allowance for loan losses as described in note (1).

SELECTED CAPITAL INFORMATION (1)
(Unaudited)
(Dollars in thousands)

	September 30, 2008			December 31, 2007		September 30, 2007 (3)
Tier 1 Capital	$	2,848,153			2,870,558		3,615,522
Total Risk-Based Capital		3,942,026			3,988,171		4,722,409
Tier 1 Capital Ratio		8.83	%		9.11		11.42
Total Risk-Based Capital Ratio		12.22			12.66		14.92
Leverage Ratio		8.51			8.65		11.16
Equity as a Percentage of Total Assets		9.87			10.42		12.04
Tangible Equity as a Percentage of Tangible Assets (2)		8.50			8.91		10.58
Book Value Per Share		10.27			10.43		12.35
Tangible Book Value Per Share (2)		8.71			8.78		10.67

(1)	Current quarter regulatory capital information is preliminary.
(2)	Excludes the carrying value of goodwill and other intangible assets from shareholders’ equity and total assets.
(3)	September 30, 2007 amounts include TSYS assets and ownership interest in TSYS shareholders’ equity.