Synovus Annual Report

Atlanta, Georgia

Columbia, South Carolina

Mobile, Alabama

Montgomery, Alabama

Jacksonville, Florida

LaGrange, Georgia

Nashville, Tennessee

Columbus, Georgia

Thomasville, Georgia

2013 Annual Report

Synovus Financial Corp. is a financial services company based in Columbus, Georgia with approximately $26 billion in assets.

Through our wholly-owned subsidiary, Synovus Bank, member FDIC, the company provides commercial and retail banking in addition to a full suite of specialized products and services including private banking, treasury management, asset-based lending, wealth management, and international banking.

Synovus also provides mortgage services, financial planning, and investment advisory services through its wholly-owned subsidiaries, Synovus Mortgage, Synovus Trust, and Synovus Securities, as well as its GLOBALT Investments and Creative Financial Group divisions. These specialized offerings, combined with our traditional banking products and services, make Synovus Bank a great choice for retail and commercial customers.

Synovus Bank’s 28 locally-branded bank divisions are positioned in some of the best markets in the Southeast, with 277 branches and 363 ATMs in Georgia, Alabama, South Carolina, Florida, and Tennessee. See Synovus on the web at synovus.com.

Tampa, Florida

Athens, Georgia

Dothan/Enterprise, Alabama

Sumter, South Carolina

Dear Shareholders, As I have traveled our footprint meeting with team members and customers over the past year, and as I told our story to community groups and investors, I regularly recapped a list of transformational events for our company since 2010, which included the consolidation of our 30 bank charters into one; the launch of a major ongoing efficiency initiative and our return to profitability, both in 2011; and the late 2012 sale of distressed assets totaling approximately $545 million which significantly strengthened our balance sheet. Then, in January of 2013, we announced the recapture of our $803 million deferred tax asset (DTA) – an important step in preparing for our exit from the Troubled Asset Relief Program (TARP). The reaching of that major milestone was the first of many accomplishments our team would celebrate during 2013, a year that was truly pivotal for Synovus and one that has even better positioned us for growth in the years ahead.

A Year of Progress The recapture of our DTA was quickly

customers, which collectively resulted

followed by several other important

in a solid overall financial performance

events – upgrades by three ratings

for the year.

agencies beginning in February; the lifting of two remaining Memorandums

During 2013, we achieved broad-based

of Understanding in April; participation

improvement in credit quality and total

in an FDIC-assisted assumption in May;

credit costs declined significantly from

two successful stock offerings, a $185

$432.6 million in 2012 to $118.0 million in

million common stock offering and a $130

2013, a 72.7% decline. Our net charge-off

million preferred stock offering, in July;

ratio declined to 0.69% in 2013 compared

and, also in that month, the monumental

to 2.45% in 2012. The non-performing

redemption of all $968 million of our

loan ratio declined to 2.08% at year-end

company’s preferred stock issued to the

2013, compared to 2.78% at the end of

U.S. Treasury under TARP. While TARP

2012. Our lending engine gained good

no doubt stabilized our economy at a

traction during the year, ending with

critical time and gave us a needed capital

three consecutive quarters of reported

infusion, exiting the program provided

loan growth. While we saw growth across

renewed operating flexibility.

our footprint, we were especially pleased with our progress in high opportunity

And even as our team was managing

markets such as Atlanta, Nashville,

through the unfolding of these

Tampa, Birmingham, and across South

extraordinary accomplishments, we

Carolina. The increase in reported loans

maintained a steady focus on further

was driven by a $431.2 million or 4.5%

strengthening credit quality, growing

growth in C&I loans as we continued to

revenue, continuing to reduce expenses,

leverage strategic partnerships between

and, most importantly, caring for

our core and specialty-line bankers that

Kessel D. Stelling Chairman and Chief Executive Officer

Synovus Financial Corp. 2013 Annual Report

1

Statesboro, Georgia

Tuscaloosa, Alabama

Naples, Florida

provide benefits to our customers and

one nationally with 13 awards in the Small

Total Credit Costs

generate core growth. We saw the impact

Business category. We believe this affirms

(in millions)

across our footprint of our expanded

our solid position in key markets across

Large Corporate Banking line of business

the Southeast region, and speaks to the

with this combined unit reaching $2

success of our team members in providing

billion in total loans outstanding. Retail

exceptional service and building long-

loans grew by $153.5 million or 4.4% with

lasting relationships with our customers.

$432.6

$500 million

$118.0 $0

2012

2013

strong growth in HELOC and private client mortgages. Reported loans grew

Finally, there was no more fitting way

by $516.1 million or 2.6% from a year

to cap off our successful year than

ago. Excluding the impact of transfers

celebrating the 125th anniversary of

Net Loan Growth*

to loans held for sale, charge-offs, and foreclosures, net loan growth* was $862.3

the founding of our company. While

(in millions)

million during 2013, compared to a net loan growth* of $588.8 million in 2012.

is significant, this milestone is especially

We expect this momentum to continue

we have faced in our recent history.

during 2014, with projected annual loan

We are thankful for the loyalty of our

growth of 4 to 5%.

shareholders and customers, and we

reaching a 125-year mark in any business important considering the challenges

deeply appreciate the dedication of our Additionally, we fully implemented $30

team members who continue to put the

million in efficiency initiatives during

needs of our customers first. We also

the year, reducing our adjusted non-

value the community partnerships we

interest expenses for 2013 by $21.8

have created over the years, and look

million compared to the prior year. We

forward to being an ongoing part of the

announced additional expected expense

economic success of individuals, families,

savings of $30 million in 2014 to offset

businesses, and communities across

our investments in talent and technology

our five-state footprint. As part of our

necessary for growth.

anniversary celebration, Synovus team

$862.3

$1 billion

$588.8

$0

2012

2013

members partnered with more than 100 We were pleased with the FDIC data

community groups and agencies in nearly

released mid-year that showed we

every one of our markets to volunteer

had retained top five market share

hundreds of hours on various projects.

in communities that represent

Team members stocked food banks

approximately 80% of our core deposit

and shelters, and donated thousands of

franchise. Our company was also

children’s books, coats, shoes, and school

recognized by Greenwich Associates

supplies to those in need. During 2013,

with 20 Customer Service Excellence

our team participated in more than 1,800

Awards overall, and we ranked number

community projects and donated more

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Synovus Financial Corp. 2013 Annual Report

* Excluding the impact of transfers to loans held for sale, charge-offs, and foreclosures.

Non-GAAP financial measure. See Non-GAAP financial measures in Part II - Item 7 of the enclosed Annual Report.

Warner Robins, Georgia

than 16,000 hours of volunteer time.

Our company has been given so much in the past 125 years, so we believe it is our responsibility to do all we can to help make our communities stronger.

As a finale to our anniversary celebration, several of our leaders and directors represented our more than 4,600 team members on the floor of the New York Stock Exchange as we rang the November 13, 2013 closing bell. This historic event created an opportunity for us to celebrate the rich legacy that has been the foundation of our past success and will continue to serve as our inspiration for many years to come.

2014 and Beyond: Delivering an Exceptional Banking Experience

Savannah, Georgia

Strengthening the Synovus Brand One of the key differentiators for our company has long been our locallybranded, relationship-based banking approach that creates mutually beneficial partnerships with our customers. While our 28-plus different local market names have allowed us to be responsive to local customer needs, there are opportunities to better connect customers, especially our small and middle market business segments, with our local brands as well as deepen the understanding of the broad array of services Synovus provides. In 2014, we are launching an internal and external brand awareness effort that highlights the strength of our franchise and local delivery model while emphasizing the capital, infrastructure, and expertise of the larger Synovus Bank.

As we transitioned our company from survivor back to competitor by successfully executing a well-defined recovery plan, we were also building a longer-term strategic roadmap for positioning Synovus as one of the leading banks in the Southeast. While we entered 2014 with strong capital and a continued commitment to the fundamentals of credit quality improvement and further expense reductions, our central focus this year is on expanding existing and growing new customer relationships by offering an exceptional banking experience.

Our efforts are concentrated in four key areas: strengthening the Synovus brand; driving growth through core and specialty banking solutions; optimizing customer convenience; and investing in our people.

Driving Growth through Core and Specialty Banking Solutions

Birmingham, Alabama

and private wealth customers. Additional fee income is expected through our Financial Management Services line as we increase our level of market penetration through an expanded brokerage sales force, additional mortgage originators, and the extension of our insurance and trust offerings by licensing more of our frontline bankers to offer these products.

Also, we are expanding our outreach to clients needing private wealth services after seeing good results from our enhanced strategy in 2013.

We expect continued loan growth through our Large Corporate Banking lines of business, especially Equipment Finance, Senior Housing, and Corporate Real Estate. Our relationship-based approach is appealing to commercial customers, especially in these types of highlyspecialized market segments, because they require resources that are responsive, flexible, and who understand their needs.

Deposit, loan, and fee income growth in this highly competitive banking environment will come through our delivery of standout customer service combined with competitive core and specialized products and services for both retail and commercial segments.

We are customizing our growth plans, ensuring we are targeting the needs and preferences of customers whether they bank with us in a small, medium, or larger market. These growth plans include a continued emphasis on promoting our core banking solutions, especially important to small business, professional

Optimizing Customer Convenience Our bank, like the rest of the industry, has witnessed significant changes in the retail customer segment with declines in the volume of branch transactions, increased preferences for alternative channels for product and service delivery, and the impact of new government regulations. We continue to evaluate our branch network to ensure our brick and mortar locations provide optimal value and convenience to those who want or Synovus Financial Corp. 2013 Annual Report

3

Charleston, South Carolina

Rome, Georgia

Tallahassee, Florida Savannah, Georgia

need a physical place to bank. We know

promotion processes. And as we, like

Neal joined our board in 2003 and has

from both industry research and our

other companies, work hard to manage

served as the Chairman of our Audit

own feedback that branches still serve

healthcare costs, we will continue our

Committee and also served on our

an important role in our customers’

emphasis on wellness and overall personal

Executive and Risk Committees. Neal’s

experience. We are also layering in

health by offering a comprehensive array

more than 40 years of accounting

additional and enhanced technology

of proactive health programs for team

experience in the financial institutions

to serve the needs of customers who

members.

industry and his integral involvement

prefer to interact with us whenever and

in other public companies’ auditing

wherever they are. By delivering more

practices and risk management programs

E-channel features in 2014, including a

and policies have been a tremendous

new online account origination platform,

resource for us.

and improved mobile banking and ATM channels equipped with the capability

Our company has certainly been positively

to capture customer preferences, we are

impacted by Jimmy and Neal over many

still delivering personalized banking to

Yancey

customers, but with added flexibility

Thank You

and convenience. Our online Business Banking Center will also be enhanced with new features and links to our other useful services, like Treasury Management, that create a high-touch and personal engagement with each business customer.

Investing in Our People

Purcell

As I close, I would like to thank Jimmy Yancey and Neal Purcell, who will be retiring from our Board of Directors as of our April 2014 Annual Shareholders Meeting.

For 54 years, 45 of those as a team member, Jimmy served in various capacities with Synovus and Columbus

years, and their leadership will be missed.

Finally, thank you to our shareholders for your loyalty as we continue to work hard to create value for you; to our team members, who have given so much of yourselves to restoring and positioning us for an exciting future; and to our customers, who are the reason we come to work energized every day. Rest assured that as excited as we were to celebrate the last 125 years of progress for our

We remain committed as ever to caring

Bank and Trust (CB&T), including

for our team members and providing

Chairman of the Board and President of

the right kind of training, benefits,

both Synovus and CB&T. He is legendary

leadership development, and career

in our company for his customer-first

growth opportunities that help us

approach, and in 2001, he led the

retain and attract the best talent in the

creation of Our Customer Covenant,

industry. We realize that investing in

which codifies our deep commitment to

team members is essential to having

exceptional service. Jimmy’s impact on

Kessel D. Stelling

satisfied customers and long-term growth.

the culture and history of this company

Chairman and Chief Executive Officer

We are also committed to improving

is immeasurable, and we will always be

our workforce demographics through

grateful for his many contributions to our

focused recruitment efforts and internal

team, customers, and communities.

4

Synovus Financial Corp. 2013 Annual Report

company, we are even more excited about the promising years ahead.

Thank you for your continued support,

As the finale to our anniversary celebration, members of our leadership team and Board of Directors rang the closing bell on November 13 at the New York Stock Exchange.

Shareholder Information Stock Trading Information Synovus common stock is traded on the New York Stock Exchange (NYSE) under the symbol “SNV”.

Price and volume information appears under the abbreviation “SynovusFnl” in NYSE daily stock quotation listings.

Dividend Reinvestment and Direct Stock Purchase Plan The Plan provides a comprehensive package of services designed to make investing in Synovus stock easy, convenient, and more affordable.

To request an enrollment package for the Dividend Reinvestment and Direct Stock Purchase Plan, or for more information, please visit us at synovus.com on the Internet or call our automated request line at (888) 777-0322.

New Investors. You can join the Plan by making an initial investment of at least $250.

Synovus Shareholders. You can choose to participate by submitting a completed enrollment form. If your shares are held in a brokerage account, you must first register some or all of your shares in your name.

Dividend Reinvestment. You can invest all or a part of your cash dividends to accumulate more shares without paying fees.

Optional Cash Investments. You can purchase additional shares by investing between a minimum of $50 at any one time and $250,000 in total per calendar year. If you wish, we can withdraw funds automatically from your bank account each month to purchase shares. Purchases are made weekly or more often if volume dictates. Fees are lower than those typically charged by the financial services industry.

Safekeeping. You can deposit your certificates with us for safekeeping at no

Florence, South Carolina

cost to you. You can request a certificate any time at no cost.

Meeting of Shareholders via a live Webcast on the Internet.

Gifts and transfers of shares. You can make gifts or transfers to others.

Investor Relations

Sale of shares. Whenever you want, you can sell some or all of your shares at fees lower than those typically charged by the financial services industry. Shares are sold weekly or more often if volume dictates.

Online Stock Purchase and Information You can now purchase your initial shares online at synovus.com and easily get current information on your shareholder account 24 hours a day, seven days a week.

You will have access to: • View account status • Purchase or sell shares • View book-entry information • Request certificate issuance • Establish/change your PIN • Make address changes • View payment history for dividend • Obtain a duplicate 1099 tax form • Request a dividend check replacement • Receive annual meeting material electronically

Notice of 2014 Annual Meeting of Shareholders

Analysts, investors, and others seeking additional financial information not available at synovus.com should contact: Patrick A. Reynolds Director of Investor Relations Synovus P.O. Box 120, Columbus, GA 31902-0120 (706) 649-4973 Fax: (706) 644-8065 email: snvir@synovus.com

Shareholder Services Current shareholders requiring assistance should contact American Stock Transfer & Trust Company:

U.S. Mail - Registered or Overnight Delivery 6201 15th Avenue, Brooklyn, NY 11219

Telephone Inquiries (888) 777-0322

Web Site amstock.com

10 a.m. Eastern time, April 24, 2014, in the Columbus Georgia Convention and Trade Center, 801 Front Avenue, Columbus, GA 31901. Log on to synovus.com/ 2014annualmeeting to join our 2014 Annual Cautionary language regarding forward-looking statements: This annual report to shareholders contains forwardlooking statements, which by their nature involve risks and uncertainties. Please refer to Synovus’ 2013 Annual Report on Form 10-K filed with the Securities and Exchange Commission for information concerning forward-looking statements, under the caption “Forward-Looking Statements,” and for a description of certain factors that may cause actual results to differ from goals referred to herein or contemplated by such statements. SYNOVUS® and SYNOVUS FINANCIAL CORP.® are federally registered service marks of Synovus Financial Corp., which also owns a number of other federally registered service marks. All other products and company names are trademarks or federally registered trademarks of their respective companies. ©Copyright 2014 Synovus Financial Corp. All rights reserved.

Photo Credits: Mike Culpepper Photography, Larry Wilbourn - Huntsville, AL photo Ben Hider Photography - NYSE photo

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Albany, Georgia

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POST OFFICE BOX 120, COLUMBUS, GEORGIA 31902 SYNOVUS.COM

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