Synovus Reduces Quarterly Common Stock Dividend

COLUMBUS, Ga.--(BUSINESS WIRE)--Synovus (NYSE:SNV) today announced that its Board of Directors has reduced the quarterly dividend payable on the company’s common stock from $0.06 to $0.01 per share, effective for the dividend payable April 1, 2009, to shareholders of record on March 19, 2009. This action will enable the company to retain an estimated additional $66 million in retained earnings per year.

“While our capital position is strong, the uncertainties in today’s unprecedented economic conditions require that we elevate capital preservation to the highest priority. A strong capital position provides the greatest value as it cushions against credit losses and positions us to emerge with strength from this weak economic cycle”

“While our capital position is strong, the uncertainties in today’s unprecedented economic conditions require that we elevate capital preservation to the highest priority. A strong capital position provides the greatest value as it cushions against credit losses and positions us to emerge with strength from this weak economic cycle,” said Richard Anthony, Chairman and Chief Executive Officer.

“We do not take lightly the importance of the dividend to shareholders, but believe the current environment requires strong precautionary measures. Our highest priority is keeping our company healthy and strong for the future,” Anthony added.

The company said it intends to return to a more normalized dividend payout when economic conditions have stabilized.

Synovus is a financial services holding company with $36 billion in assets based in Columbus, Georgia. Synovus provides commercial and retail banking, as well as investment services, to customers through 31 banks, 336 offices, and 440 ATMs 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 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 statements regarding (1) the estimated increase in retained earnings as a result of the dividend reduction, (2) our expectation that our strong capital position will position us to emerge with strength from this weak economic cycle; (3) our expectations regarding being able to return to a more normalized dividend payout when economic actions have stabilized; and (4) 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 the 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.