UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934

		SYNOVUS FINANCIAL CORP.

(Exact name of registrant as specified in its charter)

GEORGIA		58-1134883
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1111 Bay Avenue, Suite # 500
P.O. Box 120
Columbus, Georgia 31902
(Address of principal executive offices)

(706) 649-2311
(Registrants’ telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12B-2 of the Exchange Act.

Large Accelerated Filer þ     Accelerated Filer o     Non-Accelerated Filer o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12B-2 of the Exchange Act).

Yes o No þ

Indicate the number of shares outstanding of each of the issuer’s class of common stock, as of the latest practicable date.

Class		April 30, 2007
Common Stock, $1.00 Par Value		326,977,631 shares

 

 

SYNOVUS FINANCIAL CORP.

INDEX

Part I. Financial Information:
Item 1. Unaudited Financial Statements
Consolidated Balance Sheets as of March 31, 2007 and December 31, 2006			3
Consolidated Statements of Income for the Three Months Ended March 31, 2007 and 2006			4
Consolidated Statements of Changes in Shareholders’ Equity and Comprehensive Income for the Three Months Ended March 31, 2007 and 2006			5
Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2007 and 2006			6
Notes to Consolidated Financial Statements			7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			18
Item 3. Quantitative and Qualitative Disclosures About Market Risk			40
Item 4. Controls and Procedures			42
Part II. Other Information:
Item 1A. Risk Factors			43
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			43
Item 6. Exhibits			44
Signature Page			45
Exhibit Index			46
EX-31.1 CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER
EX-31.2 CERTIFICATION OF CHIEF FINANCIAL OFFICER
EX-32 CERTIFICATION OF PERIODIC REPORT

PART I. FINANCIAL INFORMATION

SYNOVUS FINANCIAL CORP.

		March 31,				December 31,
(In thousands, except share data)		2007				2006
ASSETS
Cash and due from banks		$	828,916				889,975
Interest earning deposits with banks			35,586				19,389
Federal funds sold and securities purchased under resale agreements			190,514				101,091
Trading account assets			45,289				15,266
Mortgage loans held for sale			181,266				175,042
Investment securities available for sale			3,520,777				3,352,357
Loans, net of unearned income			25,223,681				24,654,552
Allowance for loan losses			(326,826	)			(314,459	)
Loans, net			24,896,855				24,340,093
Premises and equipment, net			769,271				752,738
Contract acquisition costs and computer software, net			371,467				383,899
Goodwill			681,437				669,515
Other intangible assets, net			54,541				63,586
Other assets			1,131,765				1,091,822
Total assets		$	32,707,684				31,854,773
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Non-interest bearing retail and commercial deposits		$	3,573,323				3,538,598
Interest bearing retail and commercial deposits			18,194,828				17,741,354
Total retail and commercial deposits			21,768,151				21,279,952
Brokered time deposits			3,074,228				3,014,495
Total deposits			24,842,379				24,294,447
Federal funds purchased and other short-term liabilities			1,560,530				1,572,809
Long-term debt			1,551,856				1,350,139
Other liabilities			667,470				692,019
Total liabilities			28,622,235				27,909,414
Minority interest in consolidated subsidiaries			249,366				236,709
Shareholders’ equity:
Common stock — $1.00 par value. Authorized 600,000,000 shares; issued 332,511,661 in 2007 and 331,213,913 in 2006; outstanding 326,850,123 in 2007 and 325,552,375 in 2006			332,512				331,214
Additional paid-in capital			1,070,553				1,033,055
Treasury stock, at cost – 5,661,538 shares			(113,944	)			(113,944	)
Accumulated other comprehensive income (loss)			6,989				(2,129	)
Retained earnings			2,539,973				2,460,454
Total shareholders’ equity			3,836,083				3,708,650
Total liabilities and shareholders’ equity		$	32,707,684				31,854,773

See accompanying notes to consolidated financial statements.

SYNOVUS FINANCIAL CORP.

		Three Months Ended
		March 31,
(In thousands, except per share data)		2007				2006
Interest income:
Loans, including fees		$	502,056				404,850
Investment securities available for sale			40,453				30,711
Trading account assets			907				698
Mortgage loans held for sale			2,437				1,934
Federal funds sold and securities purchased under resale agreements			1,478				1,241
Interest earning deposits with banks			568				59
Total interest income			547,899				439,493
Interest expense:
Deposits			222,739				140,414
Federal funds purchased and other short-term liabilities			20,572				16,152
Long-term debt			18,326				20,491
Total interest expense			261,637				177,057
Net interest income			286,262				262,436
Provision for losses on loans			20,515				19,549
Net interest income after provision for losses on loans			265,747				242,887
Non-interest income:
Electronic payment processing services			228,742				220,472
Merchant acquiring services			60,680				63,949
Other transaction processing services			53,123				44,946
Service charges on deposit accounts			26,370				26,189
Fiduciary and asset management fees			12,262				11,713
Brokerage and investment banking income			7,449				6,947
Mortgage banking income			7,226				5,873
Bankcard fees			11,880				10,554
Securities gains (losses), net			447				(73	)
Other fee income			9,427				9,283
Other operating income			10,726				9,522
Non-interest income before reimbursable items			428,332				409,375
Reimbursable items			85,727				82,500
Total non-interest income			514,059				491,875
Non-interest expense:
Salaries and other personnel expense			254,953				227,758
Net occupancy and equipment expense			92,914				97,700
Other operating expenses			98,557				105,836
Non-interest expense before reimbursable items			446,424				431,294
Reimbursable items			85,727				82,500
Total non-interest expense			532,151				513,794
Minority interest in subsidiaries’ net income			11,278				9,740
Income before income taxes			236,377				211,228
Income tax expense			89,624				76,722
Net income		$	146,753				134,506
Net income per share:
Basic		$	0.45				0.43
Diluted			0.45				0.43
Weighted average shares outstanding:
Basic			325,687				313,639
Diluted			329,573				316,208

See accompanying notes to consolidated financial statements.

SYNOVUS FINANCIAL CORP.

																						Accum-
																						ulated
																						Other
																						Compre-
																		Unearned				hensive
		Shares				Common				Additional				Treasury				Compen-				Income				Retained
(In thousands, except per share data)		Issued				Stock				Paid-In Capital				Stock				sation				(Loss)				Earnings				Total
Balance at December 31, 2005			318,301			$	318,301				686,447				(113,944	)			(3,126	)			(29,536	)			2,091,187				2,949,329
SAB No. 108 Adjustment to opening shareholders’ equity																							826				3,434				4,260
Net Income																											134,506				134,506
Other comprehensive income (loss), net of tax:
Net unrealized loss on cash flow hedges																							(1,101	)							(1,101	)
Change in unrealized losses on investment securities available for sale, net of reclassification adjustment																							(12,887	)							(12,887	)
Gain on foreign currency translation																							334								334
Other comprehensive loss																							(13,654	)							(13,654	)
Comprehensive income																															120,852
Cash dividends declared – $0.20 per share																											(61,246	)			(61,246	)
Reclassification of unearned compensation to additional paid-in capital upon adoption of SFAS No. 123(R)											(3,126	)							3,126												—
Issuance of non-vested stock			143				143				(143	)																			—
Share-based compensation expense											5,182																				5,182
Stock options exercised			1,024				1,024				19,434																				20,458
Share-based tax benefit											2,489																				2,489
Ownership change at majority-owned subsidiary											1,198																				1,198
Issuance of common stock for acquisition			5,898				5,898				157,921																				163,819
Balance at March 31, 2006			325,366			$	325,366				869,402				(113,944	)			—				(42,364	)			2,167,881				3,206,341
Balance at December 31, 2006			331,214			$	331,214				1,033,055				(113,944	)			—				(2,129	)			2,460,454				3,708,650
Cumulative effect of adoption of FIN No. 48																											(230	)			(230	)
Net Income																											146,753				146,753
Other comprehensive income, net of tax:
Net unrealized gain on cash flow hedges																							1,511								1,511
Change in unrealized gains (losses) on investment securities available for sale, net of reclassification adjustment																							7,694								7,694
Loss on foreign currency translation																							(87	)							(87	)
Other comprehensive income																							9,118								9,118
Comprehensive income																															155,871
Cash dividends declared – $0.21 per share																											(67,004	)			(67,004	)
Issuance of non-vested stock			57				57				(57	)																			—
Share-based compensation expense											5,711																				5,711
Stock options exercised			1,179				1,179				21,939																				23,118
Share-based tax benefit											4,869																				4,869
Ownership change at majority-owned subsidiary											2,982																				2,982
Issuance of common stock for acquisition			62				62				2,054																				2,116
Balance at March 31, 2007			332,512			$	332,512				1,070,553				(113,944	)			—				6,989				2,539,973				3,836,083

See accompanying notes to consolidated financial statements

SYNOVUS FINANCIAL CORP.

		Three Months Ended
		March 31,
(In thousands)		2007				2006
Cash flows from operating activities:
Net income		$	146,753				134,506
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for losses on loans			20,515				19,549
Depreciation, amortization and accretion, net			48,027				49,009
Increase in interest receivable			(7,517	)			(10,233	)
Increase in interest payable			4,183				14,760
Equity in income of equity investments			(2,334	)			(852	)
Minority interest in subsidiaries’ net income			11,278				9,740
Increase in trading account assets			(30,023	)			(9,726	)
Originations of mortgage loans held for sale			(394,538	)			(331,053	)
Proceeds from sales of mortgage loans held for sale			388,372				300,281
Increase in other assets			(41,278	)			(45,581	)
Increase in other liabilities			46,300				66,301
Net (gains) losses on sales of available for sale investment securities			(447	)			73
Impairment of private equity investment			1,068				—
Impairment of developed software			620				—
Share-based compensation			7,339				7,447
Decrease in accrued salaries and employee benefits			(97,917	)			(87,977	)
Other, net			24,450				(5,749	)
Net cash provided by operating activities			124,851				110,495
Cash flows from investing activities:
Net cash received for acquisition			—				12,186
Net increase in interest earning deposits with banks			(16,197	)			(3,628	)
Net increase in federal funds sold and other short-term liabilities			(89,423	)			(226,755	)
Proceeds from maturities and principal collections of investment securities available for sale			217,908				112,974
Proceeds from sales of investment securities available for sale			7,010				38,248
Purchases of investment securities available for sale			(390,631	)			(208,506	)
Net increase in loans			(569,493	)			(573,639	)
Purchases of premises and equipment			(40,989	)			(29,635	)
Proceeds from disposal of premises and equipment			110				120
Additions to other intangible assets			7,018				—
Increase in contract acquisition costs			(7,144	)			(9,553	)
Additions to licensed computer software from vendors			(3,884	)			(1,816	)
Additions to internally developed computer software			(3,039	)			(3,734	)
Net cash used by investing activities			(888,754	)			(893,738	)
Cash flows from financing activities:
Net increase in demand and savings deposits			402,115				325,137
Net increase in certificates of deposit			145,816				201,484
Net (decrease) increase in federal funds purchased and other short-term liabilities			(12,279	)			424,351
Principal repayments on long-term debt			(104,313	)			(243,527	)
Proceeds from issuance of long-term debt			307,805				10,000
Excess tax benefit from share-based payment arrangements			4,629				2,269
Dividends paid to shareholders			(63,476	)			(57,059	)
Proceeds from issuance of common stock			23,118				20,458
Net cash provided by financing activities			703,415				683,113
Effect of exchange rate changes on cash and cash equivalent balances held in foreign currencies			(571	)			31
Decrease in cash and due from banks			(61,059	)			(100,099	)
Cash and due from banks at beginning of period			889,975				880,886
Cash and due from banks at end of period		$	828,916				780,787

See accompanying notes to consolidated financial statements.

SYNOVUS FINANCIAL CORP.

Note 1 — Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes necessary for a fair presentation of financial position, results of operations, and cash flows in conformity with U.S. generally accepted accounting principles. All adjustments consisting of normally recurring accruals that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods covered by this report have been included. The accompanying unaudited consolidated financial statements should be read in conjunction with the Synovus Financial Corp. (Synovus) consolidated financial statements and related notes appearing in the 2006 Annual Report previously filed on Form 10-K. Certain prior year amounts have been reclassified to conform to the presentation adopted in 2007.

In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the respective balance sheets and the reported amounts of revenues and expenses for the periods presented. Actual results could differ significantly from those estimates.

Note 2 — Supplemental Cash Flow Information

For the three months ended March 31, 2007 and 2006, Synovus paid income taxes (net of refunds received) of $53.6 million and $43.8 million, respectively. For the three months ended March 31, 2007 and 2006, Synovus paid interest of $256.2 million and $162.1 million, respectively.

Non-cash investing activities consisted of loans of approximately $7.8 million and $10 million, which were foreclosed and transferred to other real estate during the three months ended March 31, 2007 and 2006, respectively.

Note 3 — Derivative Instruments

Synovus accounts for its derivative financial instruments as either assets or liabilities on the balance sheet at fair value through adjustments to either the hedged items, accumulated other comprehensive income, or current earnings, as appropriate. As part of its overall interest rate risk management activities, Synovus utilizes derivative instruments to manage its exposure to various types of interest rate risk. These derivative instruments consist of interest rate swaps, commitments to sell fixed-rate mortgage loans, and interest rate lock commitments made to prospective mortgage loan customers. Mortgage rate lock commitments represent derivative instruments since it is intended that such loans will be sold.

Synovus originates first lien residential mortgage loans for sale into the secondary market and generally does not hold the originated loans for investment purposes. Mortgage loans are either converted to securities or are sold to a third party servicing aggregator.

At March 31, 2007, Synovus had commitments to fund fixed-rate mortgage loans to customers in the amount of $109.3 million. The fair value of these commitments at March 31, 2007 resulted in an unrealized loss of $612 thousand, which was recorded as a component of mortgage banking income in the consolidated statement of income.

At March 31, 2007, outstanding commitments to sell fixed-rate mortgage loans amounted to approximately $178.4 million. Such commitments are entered into to reduce the exposure to market risk arising from potential changes in interest rates, which could affect the fair value of mortgage loans held for sale and outstanding commitments to originate residential mortgage loans for resale. The commitments to sell mortgage loans are at fixed prices and are scheduled to settle at specified dates that generally do not exceed 90 days. The fair value of outstanding commitments to sell mortgage loans at March 31, 2007 resulted in an unrealized gain of $234 thousand, which was recorded as a component of mortgage banking income in the consolidated statement of income.

Synovus utilizes interest rate swaps to manage interest rate risks, primarily arising from its core community banking activities. These interest rate swap transactions generally involve the exchange of fixed and floating rate interest rate payment obligations without the exchange of underlying principal amounts. Entering into interest rate derivatives potentially exposes Synovus to the risk of counterparties’ failure to fulfill their legal obligations including, but not limited to, potential amounts due or payable under each derivative contract. Notional principal amounts often are used to express the volume of these transactions, but the amounts potentially subject to credit risk are much smaller.

The receive fixed interest rate swap contracts at March 31, 2007 are being utilized to hedge $700 million in floating rate loans and $2.32 billion in fixed-rate liabilities. A summary of interest rate swap contracts and their terms at March 31, 2007 is shown below:

								Weighted-Average
																Maturity													Net
(Dollars in			Notional					Receive				Pay				In					Unrealized								Unrealized
thousands)			Amount					Rate				Rate(*)				Months					Gains				Losses				Gains
Receive fixed swaps:
Fair value hedges			$	2,322,500					4.97	%			5.11	%			27				$	32,847				(13,447	)			19,400
Cash flow hedges				700,000					7.91	%			8.25	%			35					5,979				(1,504	)			4,475
Total			$	3,022,500					5.47	%			5.65	%			29				$	38,826				(14,951	)			23,875

Synovus designates hedges of floating rate loans as cash flow hedges. These swaps hedge against the variability of cash flows from specified pools of floating rate prime based loans. Synovus calculates effectiveness of the hedging relationship quarterly using the cumulative dollar offset method. As of March 31, 2007, cumulative ineffectiveness for Synovus’ portfolio of cash flow hedges represented a gain of approximately $74 thousand. Ineffectiveness from cash flow hedges is recognized in the consolidated statements of income as other operating income.

Synovus expects to reclassify from accumulated other comprehensive income approximately $718 thousand as net-of-tax expense during the next twelve months, as the related payments for interest rate swaps and amortization of deferred gains (losses) are recorded.

Synovus designates hedges of fixed rate liabilities as fair value hedges. These swaps hedge against the change in fair market value of various fixed rate liabilities due to changes in the benchmark interest rate LIBOR. Synovus uses the short cut method of hedge accounting for fair value hedging relationships designated as hedging the change in fair value of fixed rate subordinated debt issued by Synovus. These transactions total approximately $300 million in notional principal. For all other fair value hedging relationships, Synovus measures hedge ineffectiveness quarterly using the cumulative dollar offset method. As of March 31, 2007, cumulative ineffectiveness for Synovus’ portfolio of fair value hedges represented a gain of approximately $603 thousand. Ineffectiveness from fair value hedges is recognized in the consolidated statements of income as other operating income.

Synovus also enters into derivative financial instruments to meet the financing and interest rate risk management needs of its customers. Upon entering into these instruments to meet customer needs, Synovus enters into offsetting positions in order to minimize the risk to Synovus. These derivative financial instruments are recorded at fair value with any resulting gain or loss recorded in current period earnings. As of March 31, 2007, the notional amount of customer related interest rate derivative financial instruments was $2.04 billion.

Synovus also enters into derivative financial instruments to meet the equity risk management needs of its customers. Upon entering into these instruments to meet customer needs, Synovus enters into offsetting positions in order to minimize the risk to Synovus. These derivative financial instruments are recorded at fair value with any resulting gain or loss recorded in current period earnings. As of March 31, 2007, the notional amount of customer related equity derivative financial instruments was $19.8 million.

Note 4 – Share-Based Compensation

General Description of Share-Based Compensation Plans

Synovus’ long-term incentive plans authorize the Compensation Committee of the Board of Directors to grant share-based compensation to Synovus employees and non-employee directors. Synovus accounts for its share-based compensation arrangements in accordance with SFAS No. 123R, “Share-Based Payment.”

At December 31, 2006, Synovus had a total of 4.2 million shares of its authorized but unissued common stock reserved for future share-based grants under the Synovus Financial Corp. 2002 and 2000 Long-Term Incentive Plans (“2002 and 2000 Plans”). On February 15, 2007, the Board of Directors adopted the Synovus Financial Corp. 2007 Omnibus Plan (“2007 Plan”), subject to shareholder approval. The 2007 Plan was approved by shareholders on April 25, 2007. Due to the approval of the 2007 Plan, no further awards will be made under the 2002 and 2000 Plans. The aggregate number of shares of Synovus common stock which may be granted to participants pursuant to awards granted under the 2007 Plan may not exceed 18 million.

Share-Based Compensation Expense

Synovus’ share-based compensation costs are recorded as a component of salaries and other personnel expense in the consolidated statements of income. Share-based compensation expense recognized in income is presented below:

			Three Months Ended
			March 31,
(in thousands)			2007					2006
Share-based compensation expense:
Stock options			$	4,183					6,575
Non-vested shares				3,156					872
Total share-based compensation expense			$	7,339					7,447

Stock Option Awards

During the three months ended March 31, 2007, Synovus granted 246,660 options to purchase shares of Synovus common stock to certain key Synovus employees at a weighted-average exercise price of $31.93. Stock options granted in 2007 generally become exercisable over a three-year period, with one-third of the total grant amount vesting on each anniversary of the grant-date, and expire ten years from the date of grant. Share-based compensation expense is recognized for plan participants on a straight-line basis over the shorter of the vesting period or the period until reaching retirement eligibility. At March 31, 2007, there were 22,204,234 options to purchase shares of Synovus common stock outstanding with a weighted-average exercise price of $23.18.

The weighted-average grant-date fair value of stock options granted during the three months ended March 31, 2007 was $7.22 as determined using the Black-Scholes-Merton option-pricing model with the following weighted-average assumptions: risk free interest rate of 4.78%, expected stock price volatility of 21.76%, dividend yield of 2.6% and an expected life of 6.0 years.

Non-Vested Shares

During the three months ended March 31, 2007, 59,194 non-transferable non-vested shares of Synovus common stock with a weighted-average grant date fair value of $31.97 were awarded to certain key employees and non-employee directors of Synovus. Non-vested shares granted in 2007 generally vest over a three-year period, with one-third of the total grant amount vesting on each anniversary of the grant-date. Share-based compensation expense is recognized for plan participants on a straight-line basis over the vesting period. At March 31, 2007, there were 685,028 non-vested shares outstanding with a weighted-average grant-date fair value of $27.58.

In addition to the non-vested shares described above, 12,677 non-transferable non-vested shares of Synovus common stock with a grant date fair value of $31.64 were awarded to a key Synovus executive under a performance-vesting schedule.

TSYS Share-Based Compensation

Total System Services, Inc. (TSYS), an 81% owned subsidiary, also grants share-based compensation to certain executives and non-employee directors in the form of options to purchase shares of TSYS common stock (TSYS stock options) or non-vested shares of TSYS

common stock (TSYS non-vested shares).

During the three months ended March 31, 2007, TSYS awarded 241,260 non-transferable non-vested shares of TSYS common stock with a grant-date fair value of $31.37 to certain key employees and non-employee directors of TSYS. The fair value of the common stock at the date of issuance will be amortized over the shorter of the vesting period or the period until reaching retirement. TSYS did not grant any options for purchase of TSYS common stock during the three months ended March 31, 2007.

Note 5 – Business Combinations

Effective on April 1, 2006, Synovus acquired all of the issued and outstanding common shares of Banking Corporation of Florida, the parent company of First Florida Bank (First Florida), headquartered in Naples, Florida. The acquisition was accounted for using the purchase method of accounting, and accordingly, the results of operations of First Florida have been included in Synovus’ consolidated financial statements beginning April 1, 2006.

The aggregate purchase price was $84.8 million, consisting of 2,938,791 shares of Synovus common stock valued at $80.1 million, stock options valued at $4.7 million and $24 thousand in direct acquisition costs. Synovus has completed the allocation of the purchase price of this acquisition to the respective assets acquired, including identifiable intangible assets, and liabilities assumed.

The final purchase price allocation is presented below:

(In thousands)			At April 1, 2006
Cash and due from banks			$	2,595
Federal funds sold				4,782
Investments				5,655
Loans, net				341,825
Premises and equipment				2,317
Goodwill				54,849
Core deposits premium				1,172
Other intangible assets				937
Other assets				3,655
Total assets acquired				417,787
Deposits (a)				321,283
Long-term debt				10,269
Other liabilities				1,405
Total liabilities assumed				332,957
Net assets acquired			$	84,830

Effective on March 25, 2006, Synovus acquired all of the issued and outstanding common shares of Riverside Bancshares, Inc., the parent company of Riverside Bank (Riverside), headquartered in Marietta, Georgia. Concurrent with the acquisition, Riverside was merged into a subsidiary of Synovus, Bank of North Georgia. The acquisition was accounted for using the purchase method

of accounting, and accordingly, the results of operations of Riverside Bancshares have been included in Synovus’ consolidated financial statements beginning March 25, 2006.

The aggregate purchase price was $171.4 million, consisting of 5,883,426 shares of Synovus common stock valued at $159.8 million, stock options valued at $11.4 million, and $182 thousand in direct acquisition costs. Synovus has completed the allocation of the purchase price of this acquisition to the respective assets acquired, including identifiable intangible assets, and liabilities assumed.

The final purchase price allocation is presented below:

(In thousands)			At March 25, 2006
Cash and due from banks			$	13,041
Investments				116,604
Loans, net				469,983
Premises and equipment				11,973
Goodwill				123,364
Core deposits premium				6,861
Other intangible assets				1,249
Other assets				22,389
Total assets acquired				765,464
Deposits (a)				491,739
Federal funds purchased				2,069
Securities sold under repurchase agreements				50,670
Long-term debt				37,683
Other liabilities				11,921
Total liabilities assumed				594,082
Net assets acquired			$	171,382

On July 11, 2006, TSYS completed the acquisition of Card Tech, Ltd., a privately owned London-based payments firm, and related companies. TSYS rebranded the group of companies as TSYS Card Tech. TSYS paid aggregate consideration of approximately $59.3 million, including direct acquisition costs. TSYS is in the process of allocating the purchase price to the respective assets acquired, and has preliminarily allocated approximately $32.1 million to goodwill, approximately $19.1 million to other identifiable intangible assets and the remaining amounts to other identifiable assets and liabilities acquired.

Pro forma information related to the impact of these acquisitions on Synovus’ consolidated financial statements, assuming such acquisitions had occurred at the beginning of the periods reported, is not presented as such impact is not significant.

Note 6 – Operating Segments

Synovus has two reportable segments: Financial Services and Transaction Processing Services, which is comprised of TSYS. The Financial Services segment provides financial services

including banking, financial management, insurance, mortgage and leasing services through 39 subsidiary banks and other Synovus offices in Georgia, Alabama, South Carolina, Florida, and Tennessee. TSYS provides electronic payment processing and other related services to card-issuing institutions in the United States, and internationally. All inter-segment services provided are charged at the same rates as those charged to unaffiliated customers. Such services are included in the results of operations of the respective segments and are eliminated to arrive at consolidated totals.

Segment information as of and for the three months ended March 31, 2007 and 2006, respectively, is presented in the following table:

								Financial
(In thousands)								Services					TSYS (a)					Eliminations					Consolidated
Interest income				2007				$	547,899					3,398					(3,398)	(b)			$	547,899
				2006					439,493					1,520					(1,520)	(b)				439,493
Interest expense				2007					264,950					85					(3,398)	(b)				261,637
				2006					178,544					33					(1,520)	(b)				177,057
Net interest income				2007					282,949					3,313					—					286,262
				2006					260,949					1,487					—					262,436
Provision for losses on loans				2007					20,515					—					—					20,515
				2006					19,549					—					—					19,549
Net interest income after provision				2007					262,434					3,313					—					265,747
for losses on loans				2006					241,400					1,487					—					242,887
Total non-interest income				2007					87,503					433,293					(6,737)	(c)				514,059
				2006					83,064					414,406					(5,595)	(c)				491,875
Total non-interest expense				2007					194,797					344,091					(6,737)	(c)				532,151
				2006					178,946					340,443					(5,595)	(c)				513,794
Income before income taxes				2007					155,140					92,515					(11,278)	(d)				236,377
				2006					145,518					75,450					(9,740)	(d)				211,228
Income tax expense				2007					54,733					34,891					—					89,624
				2006					51,757					24,965					—					76,722
Net income				2007					100,407					57,623					(11,278)	(d)				146,753
				2006					93,761					50,485					(9,740)	(d)				134,506
Total assets				2007					31,335,305					1,639,803					(267,424)	(e)				32,707,684
				2006					27,937,727					1,401,328					(177,878)	(e)				29,161,177

Segment information for the changes in the carrying amount of goodwill for the three months ended March 31, 2007 is shown in the following table:

			Financial
(In thousands)			Services				TSYS				Total
Balance as of December 31, 2006			$	536,178				133,337				669,515
Goodwill adjusted during period				3,419	(1)(2)			8,503	(3)			11,922
Impairment losses				—				—				—
Balance as of March 31, 2007			$	539,597				141,840				681,437

Intangible assets (excluding goodwill) net of accumulated amortization as of March 31, 2007 and December 31, 2006, respectively, are presented in the table below.

(In thousands)			March 31, 2007					December 31, 2006
Purchased trust revenues			$	2,573					2,643
Core deposit premiums				25,978					27,099
Employment contracts / non-competition agreements				75					150
Acquired customer contracts				2,962					5,029
Intangibles associated with the acquisition of minority interest in TSYS				6,381					6,577
Customer relationships				14,877					20,275
Other				1,695					1,813
Total carrying value			$	54,541					63,586

Note 7 — Income Taxes

Synovus files income tax returns in the U.S. Federal jurisdiction and various state and foreign jurisdictions, and is subject to examinations by these taxing authorities unless statutory examination periods lapse. Synovus’ U.S. Federal income tax return is filed on a consolidated basis. Most state and foreign income tax returns are filed on a separate entity basis. Synovus is no longer subject to U.S. Federal income tax examinations by the Internal Revenue Service (IRS) for years before 2004, and with few exceptions, is no longer subject to income tax examinations from state and local or foreign authorities for years before 2001. There is currently no Federal tax examination in progress; however, a number of tax examinations are in progress by the relevant state tax authorities.

Synovus adopted the provisions of Financial Accounting Standards Board (FASB) interpretation No. 48, “Accounting for Income Taxes – an interpretation of FASB Statement 109” (FIN 48) as of January 1, 2007. FIN 48 establishes a single model to address accounting for uncertain tax positions. FIN 48 clarifies the accounting for income taxes by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. FIN 48 also provides guidance on derecognition, measurement classification, interest and penalties, accounting in interim periods, disclosure and transition. FIN 48 provides a two-step process in the evaluation of a tax position. The first step is recognition. A company determines whether it is more-likely-than-not that a tax position will be sustained upon examination, including a resolution of any related appeals or litigation processes, based upon the technical merits of the position. The second step is measurement. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Upon adoption as of January 1, 2007, Synovus recognized a $607 thousand increase in the liability for uncertain tax positions, with a corresponding decrease in minority interest of $377 thousand and a decrease in retained earnings of $230 thousand as a cumulative effect adjustment. During the three months ended March 31, 2007, Synovus increased its state income tax expense by a net amount of approximately $1.2 million (net of the Federal tax benefit) in response to new information impacting the potential resolution of uncertain tax positions, subsequent to the adoption of FIN 48.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (1):

(in thousands)
Balance at January 1, 2007		$	16,485
Current activity:
Additions based on tax positions related to current year			574
Additions for tax positions of prior years			2,974
Reductions for tax positions of prior years			(1,159	)
Settlements			—
Balance at March 31, 2007		$	18,874

 

(1) Unrecognized State tax benefits are not adjusted for the Federal tax impact

 

Synovus recognizes accrued interest and penalties related to unrecognized income tax benefits as a component of income tax expense. Accrued interest and penalties on unrecognized tax benefits totaled $3.4 million and $4.3 million as of January 1, 2007 and March 31, 2007, respectively. The total amount of unrecognized income tax benefits as of January 1, 2007 that, if recognized, would affect the effective tax rate is $13.4 million (net of the Federal benefit on State tax issues) which includes interest of $2.2 million.

Note 8 – Dividends per Share

Dividends declared per share for the three months ended March 31, 2007 were $0.2050, up 5.1% from $0.1950 for the same period in 2006.

Note 9 – Guarantees and Indemnifications

TSYS has entered into processing and licensing agreements with clients that include intellectual property indemnification clauses. TSYS generally agrees to indemnify its clients, subject to certain exceptions, against legal claims that TSYS’ services or systems infringe on certain third party patents, copyrights or other proprietary rights. In the event of such a claim, TSYS is generally obligated to hold the client harmless and pay for related losses, liabilities, costs and expenses, including, without limitation, court costs and reasonable attorney’s fees. TSYS has not made any indemnification payments in relation to these indemnification clauses.

Synovus has not recorded a liability for guarantees or indemnities in the accompanying consolidated balance sheets since the maximum amount of potential future payments under such guarantees and indemnities is not determinable.

Note 10 – Recently Adopted Accounting Pronouncements

In February 2006, the FASB issued SFAS No. 155, “Accounting for Certain Hybrid Financial Instruments” (SFAS No. 155). SFAS No. 155 amends SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities,” and SFAS No. 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities.” SFAS No. 155 resolves issues addressed in Statement 133 Implementation Issue No. D1, “Application of Statement 133 to Beneficial Interests in Securitized Financial Assets.” SFAS No. 155 eliminates the exemption from applying SFAS No. 133 to interests in securitized financial assets so that similar instruments are accounted for similarly regardless of the form of the instruments. SFAS No. 155 also permits election of fair value measurement at acquisition, at issuance, or when a previously recognized financial instrument is subject to a re-measurement event, on an instrument-by-instrument basis. The provisions of this statement are effective for all financial instruments

acquired or issued after the beginning of the entity’s first fiscal year that begins after September 15, 2006. Synovus adopted SFAS No. 155 effective January 1, 2007. The impact of adoption of SFAS No. 155 was not material to Synovus’ financial position, results of operations or cash flows.

In March 2006, the FASB issued SFAS No. 156, “Accounting for Servicing of Financial Assets” (SFAS No. 156). SFAS No. 156 amends SFAS No. 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities,” with respect to the accounting for separately recognized servicing assets and servicing liabilities. SFAS No. 156 requires an entity to recognize a servicing asset or servicing liability each time it undertakes an obligation to service a financial asset by entering into a servicing contract in certain situations and requires that all separately recognized servicing assets and servicing liabilities be initially measured at fair value, if practicable. The provisions of this statement are effective as of the beginning of the first fiscal year that begins after September 15, 2006. Synovus adopted SFAS No. 156 effective January 1, 2007. The impact of adoption of SFAS No. 156 was not material to Synovus’ financial position, results of operations or cash flows.

In September 2006, the EITF reached a consensus on EITF Issue No. 06-5, “Accounting for Purchases of Life Insurance — Determining the Amount That Could Be Realized in Accordance with FASB Technical Bulletin No. 85-4” (EITF 06-5). EITF 06-5 requires that a determination of the amount that could be realized under an insurance contract should (1) consider any additional amounts beyond cash surrender value included in the contractual terms of the policy and (2) be based on an assumed surrender at the individual policy or certificate level, unless all policies or certificates are required to be surrendered as a group. EITF 06-5 is effective for fiscal periods beginning after December 15, 2006. Synovus adopted EITF 06-05 effective January 1, 2007. The impact of adoption of EITF 06-05 was not material to Synovus’ financial position, results of operations or cash flows.

ITEM 2 — MANAGEMENT’S DISCUSSION
AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

Executive Summary

The following financial review provides a discussion of Synovus’ financial condition, changes in financial condition, and results of operations.

Synovus is a diversified financial services holding company, based in Columbus, Georgia, with more than $32 billion in assets. Synovus operates two business segments: the Financial Services segment and the Transaction Processing Services segment. The Financial Services segment provides integrated financial services including banking, financial management, insurance, mortgage, and leasing services through 39 subsidiary banks and other Synovus offices in five southeastern states. At March 31, 2007, our subsidiary banks ranged in size from $80.2 million to $5.8 billion in total assets. The Transaction Processing Services segment provides electronic payment processing services through our 81% owned subsidiary Total System Services, Inc. (TSYS), one of the world’s largest companies for outsourced payment services. Our ownership in TSYS gives us a unique business mix: for the first three months of 2007, 54% of our consolidated revenues and 32% of our net income came from TSYS.

In terms of how we measure success in our business, the following are our key financial performance indicators:

Financial Services

		•     Loan Growth		•     Credit Quality
		•     Core Deposit Growth		•     Fee Income Growth
		•     Net Interest Margin		•     Expense Management
TSYS
		•     Revenue Growth		•     Expense Management

2007 Financial Performance Highlights

Consolidated

	•		Net income of $146.8 million, up 9.1%, for the three months ended March 31, 2007 as compared to the same period in 2006.
	•		Diluted earnings per share of $0.45 for the three months ended March 31, 2007, up 4.7% over the same period a year ago.

Financial Services

	•		Net income growth: 7.1% for the three months ended March 31, 2007, over the corresponding period in the prior year.
	•		Net interest margin: 4.10% for the three months ended March 31, 2007, as compared to 4.32% for the same period in 2006.
	•		Loan growth: 12.5% increase from March 31, 2006 (11.0% excluding acquisitions).

•

Credit quality:

	•		Non-performing assets ratio of 0.68%, compared to 0.50% at December 31, 2006 and 0.45% at March 31, 2006.
	•		Past dues over 90 days and still accruing interest as a percentage of total loans of 0.11%, compared to 0.14% at December 31, 2006 and 0.08 % at March 31, 2006.
	•		Total past dues still accruing interest as a percentage of total loans of 0.60% compared to 0.62% at December 31, 2006 and 0.51% at March 31, 2006.
	•		Net charge-off ratio of 0.13% for the three months ended March 31, 2007 compared to 0.27% for the three months ended March 31, 2006 and 0.26% for the year ended December 31, 2006.

	•		Core deposit (total deposits less brokered time deposits) growth: 12.3% increase from March 31, 2006 and 10.8% increase excluding acquisitions.
	•		Fee income: up 5.3% for the three months ended March 31, 2007, compared to the corresponding period in the prior year.
	•		Non-interest expenses up by 8.9% for the three months ended March 31, 2007 over the corresponding period in the prior year (up 5.9% excluding acquisitions).

TSYS

	•		Revenue growth before reimbursable items: 4.3% for the three months ended March 31, 2007 over the corresponding period in the prior year.
	•		Expense growth before reimbursable items: 0.1% for the three months ended March 31, 2007 over the corresponding period in the prior year.
	•		Net income growth: 13.7% for the three months ended March 31, 2007, over the corresponding period in the prior year.

Other highlights at TSYS include:

	•		TSYS completed the Capital One conversion in the first quarter of 2007.
	•		TSYS signed a contract extension with Spira de México, S.A. de C.V. to continue processing its consumer-credit portfolio.
	•		TSYS’ PRIME card and merchant management system was chosen by Norway’s largest financial services group, DnB NOR Bank ASA, to manage the fast-growing cards portfolio of its market-leading credit-card operator.
	•		In the merchant-processing arena, TSYS renewed agreements with Sage Payment Solutions and Moneris Solutions, and signed new agreements with Clearent and National Processing Company.

2007 Earnings Outlook

Synovus expects 2007 diluted earnings per share to be in the range of $1.96 to $1.98, based in part upon the following assumptions:

	•		Stable short-term interest rates.
	•		Annual net interest margin near the first quarter of 2007 level of 4.10%.
	•		Loan growth of approximately 10%.
	•		A stable credit environment.
	•		TSYS’ net income within its range of guidance.

Critical Accounting Policies

The accounting and financial reporting policies of Synovus conform to U.S. generally accepted accounting principles and to general practices within the banking and electronic payment processing industries. Synovus has identified certain of its accounting policies as “critical accounting policies.” In determining which accounting policies are critical in nature, Synovus has identified the policies that require significant judgment or involve complex estimates. The application of these policies has a significant impact on Synovus’ financial statements. Synovus’ financial results could differ significantly if different judgments or estimates are applied in the application of these policies.

Synovus’ critical accounting policies are described in the “Financial Review” section of Synovus’ 2006 Annual Report on Form 10-K. There have been no material changes to Synovus’ critical accounting policies, estimates, and assumptions, or the judgments affecting the application of these estimates and assumptions in 2007.

Business Combinations

Refer to Note 5 of the Notes to Consolidated Financial Statements (unaudited) for a discussion of business combinations.

Balance Sheet

During the first three months of 2007, total assets increased $852.9 million. The more significant increases consisted of loans, net of unearned income, up $569.1 million, federal funds sold and securities purchased under resale agreements up $89.4 million, and investment securities available for sale up $168.4 million.

Providing the necessary funding for the balance sheet growth during the first three months of 2007, the core deposit base (total deposits excluding brokered time deposits) grew $488.2 million, brokered time deposits grew $59.7 million, federal home loan bank advances (a component of long-term debt) increased $197.3 million, and shareholders’ equity increased $127.4 million.

Trading Account Assets

The trading account assets portfolio is substantially comprised of mortgage-backed securities which are bought and held principally for sale and delivery to correspondent and retail customers of Synovus. Trading account assets are reported on the consolidated balance sheets at fair value, with unrealized gains and losses included in other operating income on the consolidated statements of income.

Loans

At March 31, 2007, loans outstanding were $25.22 billion, an increase of $2.80 billion, or 12.5%, over March 31, 2006. Excluding the impact of the First Florida acquisition which was completed during the second quarter of 2006, total loans grew by $2.46 billion, or 11.0%. On a sequential quarter basis, total loans outstanding grew by $569.1 million or 9.4% annualized.

Total loans as of March 31, 2007 for the five southeastern state areas in which Synovus’ banks are located include loans by state of: Georgia — $13.35 billion, South Carolina — $3.71 billion, Alabama -

$3.57 billion, Florida — $3.49 billion, and Tennessee — $1.10 billion. As a percentage of the total loan portfolio, loans by state at March 31, 2007, December 31, 2006, and March 31, 2006 were: Georgia – 52.9%, 52.8%, and 53.7%, South Carolina – 14.7%, 14.5%, and 14.0%, Alabama – 14.2%, 14.5%, and 14.6%, Florida – 13.8%, 13.9%, and 13.2%, and Tennessee – 4.4%, 4.3%, and 4.5%, respectively.

At March 31, 2007, total loans in the Atlanta market were $4.97 billion, or 19.7% of the total loan portfolio, and increased $722.6 million, or 17.0%, over the same period in the prior year. The Atlanta market included commercial real estate (CRE) loans of $3.01 billion and commercial and industrial (C&I) loans of $1.58 billion at March 31, 2007. Compared to March 31, 2006, CRE loans and C&I loans in the Atlanta market increased by $544.3 million, or 22.1%, and $159.0 million, or 11.2%, respectively. On a sequential quarter basis, Atlanta market loans grew at an annualized rate of 6.2%, and CRE loans and C&I loans grew at annualized rates of 9.1% and 2.9%, respectively.

Total loans in coastal markets were $3.48 billion, representing 13.8% of the total loan portfolio at March 31, 2007. Compared to March 31, 2006, total loans in coastal markets increased by $518.2 million, or 17.5%, including increases of $286.7 million, or 19.5%, for CRE loans and $188.2 million, or 17.4%, for C&I loans. Excluding the acquisition of First Florida, total loans in coastal markets grew by $176.4 million, or 5.9%, over March 31, 2006. On a sequential quarter basis, loans in coastal markets grew at an annualized rate of 7.1%, CRE loans decreased at an annualized rate of 4.4%, and C&I loans grew at an annualized rate of 25.9%.

Total loans in other markets (excluding the Atlanta and coastal markets) at March 31, 2007 were $16.77 billion, or 66.5% of the total loan portfolio, and increased $1.56 billion, or 10.3%, over the same period in the prior year. Compared to March 31, 2006, CRE loans increased by $743.8 million, or 12.6%, while C&I loans increased by $588.8 million, or 8.7%. On a sequential quarter basis, loans in other markets grew at annualized rates of 10.8%, and CRE loans and C&I loans grew at annualized rates of 18.1% and 7.5%, respectively.

Loans for land acquisition grew by $114.1 million, or 33.0% annualized, from December 31, 2006. A significant portion of this increase relates to non-residential land acquired for retail shopping centers. The annualized rate of growth for the residential portion of land acquisitions (excluding retail shopping centers) was approximately 14.0%, much of which occurred in some of our stronger markets in South Carolina, Huntsville, Alabama and Nashville, Tennessee where demand is strong and supply is limited.

Loans for residential development increased by $142.4 million, or 28.4% annualized, while loans for commercial development declined by $9.6 million, or 4.5% annualized, from December 31, 2006. During the three months ended March 31, 2007, residential utilization rates were approximately 71.0% and commercial construction utilization rates were approximately 68.0%.

At March 31, 2007, Synovus maintained a conservative position for its real estate loan portfolio, with estimated loan to value ratios of 39% for land loans, 61% for acquisition and development loans, 76% for commercial construction, and 73% for residential construction.

Synovus continues to better balance the mix of its loan growth. As part of Synovus’ commercial banking strategy, our goal is to grow commercial and industrial loans by 10% for the year. During the three months ended March 31, 2007, this category grew by 9.0%, annualized, compared to December 31, 2006.

Retail loans at March 31, 2007 total $3.68 billion, representing 14.5% of the total loan portfolio. Total retail loans grew by 8.6% on a year over year basis and 2.0% on a sequential quarter basis, led principally by growth in home equity loans. Credit card balances are up slightly over the prior year following the normal seasonal decline in the first quarter of 2007.

Credit Quality

The non-performing assets ratio was 0.68% at March 31, 2007 compared to 0.50% at December 31, 2006 and 0.45% at March 31, 2006. Total non-performing assets were $170.5 million at March 31, 2007, up $48.0 million from December 31, 2006. The majority of the increase in non-performing assets was in the residential development, residential construction, and land acquisition categories. We believe that these credits are well secured with ample loan to value ratios which should limit the risk of losses on these credits.

The net charge-off ratio for the three months ended March 31, 2007 was 0.13% compared to 0.27% for the same period of 2006 and 0.26% for the year ended December 31, 2006.

Past due levels remained favorable, with total loans past due (and still accruing interest) at 0.60% of loans. Loans over 90 days past due and still accruing interest at March 31, 2007 were $27.4 million, or 0.11% of total loans, compared to 0.14% at December 31, 2006 and 0.08% at March 31, 2006. These loans are in the process of collection, and management believes that sufficient collateral value securing these loans exists to cover contractual interest and principal payments on the loans. Management further believes the resolution of these delinquencies will not cause a material increase in non-performing assets.

The allowance for loan losses is $326.8 million, or 1.30% of net loans, at March 31, 2007 compared to $314.5 million, or 1.28% of net loans, at December 31, 2006. The allowance to non-performing loans coverage was 235.48% at March 31, 2007, compared to 325.45% at December 31, 2006.

The provision for losses on loans was $20.5 million for the three months ended March 31, 2007 compared to $19.5 million for the three months ended March 31, 2006. For the three months ended March 31, 2007, total provision expense covered net charge-offs by 2.52 times compared to 1.36 times for the same period a year ago.

(Dollars in thousands)			March 31, 2007					December 31, 2006
Non-performing loans			$	138,790				$	96,622
Other real estate				31,710					25,923
Non-performing assets			$	170,500				$	122,545
Loans over 90 days past due and still accruing			$	27,414				$	34,495
As a % of loans				0.11	%				0.14	%
Allowance for loan losses			$	326,826				$	314,459
Allowance for loan losses as a % of loans				1.30	%				1.28	%
As a % of loans and other real estate:
Non-performing loans				0.55	%				0.39	%
Other real estate				0.13					0.11
Non-performing assets				0.68	%				0.50	%
Allowance to non-performing loans				235.48	%				325.45	%

Management continuously monitors non-performing and past due loans, to prevent further deterioration regarding the condition of these loans. Management believes non-performing loans and loans past due over 90 days and still accruing include all material loans where known information about possible credit problems of borrowers causes management to have serious doubts as to the collectibility of amounts due according to the contractual terms of the loan agreement.

The following table shows the composition of the loan portfolio and non-performing loans (classified by loan type) as of March 31, 2007.

																		% of
													Total					Total
								% of					Non-					Non-
(Dollars in thousands)								Total Loans					performing					performing
Loan Type			Total Loans					Outstanding					Loans					Loans
Multi-Family			$	519,219					2.1	%			$	388					0.3	%
Hotels				661,985					2.6					1,270					0.9
Office Buildings				852,973					3.4					4,388					3.2
Shopping Centers				742,344					2.9					—					—
Commercial Development				866,920					3.5					—					—
Other Investment Property				529,394					2.1					414					0.3
Total Investment Properties				4,172,835					16.6					6,460					4.7
1-4 Family Construction				2,404,235					9.5					17,530					12.6
1-4 Family Perm /Mini-Perm				1,145,235					4.5					10,773					7.8
Residential Development				2,178,573					8.7					21,155					15.2
Total 1-4 Family Properties				5,728,043					22.7					49,458					35.6
Land Acquisition				1,516,526					6.0					15,800					11.4
Total Commercial Real Estate				11,417,404					45.3					71,718					51.7
Commercial, Financial, and Agricultural				6,055,447					24.0					38,629					27.8
Owner-Occupied				4,122,498					16.4					15,501					11.2
Total Commercial and Industrial				10,177,945					40.4					54,130					39.0
Home Equity				1,401,898					5.6					4,888					3.5
Consumer Mortgages				1,518,168					6.0					6,004					4.3
Credit Cards				273,462					1.1					—					—
Other Retail Loans				483,412					1.8					2,050					1.5
Total Retail				3,676,940					14.5					12,942					9.3
Unearned Income				(48,608	)				(0.2	)				—					—
Total			$	25,223,681					100.0	%			$	138,790					100.0	%