Synovus Financial Corp. (NYSE: SNV) today reported financial results for the second quarter of 2010 that showed positive trends in the company’s overall financial performance. The loss from continuing operations in the second quarter was $229 million, a 12 percent improvement from the loss from continuing operations for the first quarter of 2010. The loss per common share for the second quarter was $0.36. During the quarter, Synovus experienced improved credit trends, strengthened its balance sheet with a significant capital raise and simplified its corporate structure to better position the company for future growth and profitability.

Second Quarter Business Results:

Continued Positive Credit Trends

Inflows of non-performing assets reduced significantly to $340 million, down 36 percent from $530 million in the first quarter.

Total non-performing assets were down $270 million, or 15 percent, from the first quarter, impacted by lower inflows, asset dispositions and charge-offs.

Total loans past due and still accruing were 1.06 percent of total loans, down 15 basis points from the first quarter of 2010.

Total credit costs declined 11 percent during the second quarter to $353 million, from $395 million in the first quarter of 2010.

Strengthened Capital Position

On May 5, 2010, Synovus completed a $1.1 billion capital raise, providing the strategic flexibility needed to address credit issues and future growth opportunities.

As of June 30, 2010, capital ratios were as follows:

Tier 1 Capital Ratio increased to 13.33 percent from 9.68 percent in the first quarter of 2010

Tier 1 Common Equity Ratio increased to 9.51 percent from 6.03 percent in the first quarter of 2010

Tangible Common Equity/Tangible Assets Ratio increased to 7.58 percent from 5.08 percent in the first quarter of 2010

Improved Operational Efficiencies

In June 2010, Synovus consolidated 30 separate bank charters into a single charter, allowing for improved capital management and cash flow, simplifying regulatory oversight, and positioning Synovus to leverage efficiencies company-wide.

“We are certainly encouraged by these positive trends,” said Kessel D. Stelling, President, COO and Acting CEO of Synovus. “Five consecutive quarterly declines of non-performing asset inflows, moderating past-due levels, and an overall 15 percent reduction in total non-performing assets are all strong predictors of future credit costs.  However, we will not be satisfied until we return to profitability. Our team remains focused and committed to taking the necessary steps to reduce and reverse our balance sheet shrinkage; to growing and expanding our customer relationships; and to operating more efficiently under our new, streamlined model,” added Stelling.

Stelling also noted the importance of the successful completion of a $1.1 billion capital raise and the consolidation of the company’s 30 separate charters during the quarter without any disruption in service to customers.  “This was truly a transformational quarter for our company,” continued Stelling. “We are confident that our relationship-centered model, with local branding and local decision-making, positions us well for the future.”

Synovus will host an earnings highlights conference call at 4:30 p.m. EDT on July 22, 2010.  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.