PR - Synovus Records $12 Million Charge in Connection with Visa Settlement

On October 3, 2007, Visa Inc. (Visa) announced that it had completed restructuring transactions in preparation for its initial public offering planned for 2008. On November 7, 2007, Visa announced that it had reached a settlement with American Express involving certain litigation. The settlement is subject to certain approvals, including approval by at least two-thirds of the Visa USA, Inc. voting members. 

Synovus has a membership interest in Visa and Synovus and other member banks have obligations to share in certain losses under various agreements with Visa in connection with this and other litigation in accordance with their proportionate membership interests. As a result of the announced settlement, Synovus has recorded a $12.0 million liability for the litigation settlement and a corresponding pre-tax expense in the third quarter of 2007.

As a result of this action, Synovus’ previously announced net income for the three and nine months ended September 30, 2007, which was included in Synovus’ Form 8-K filed on October 25, 2007, was reduced by $7.1 million, or $0.02 per diluted share. This information will be reflected in Synovus’ third quarter Quarterly Report on Form 10-Q. Synovus expects that its proportionate share of the proceeds of the planned Visa initial public offering will offset this liability in future periods.

The aforementioned earnings guidance of approximately $1.83 does not include the expenses associated with the planned TSYS spin-off transaction.

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 37 banks, 440 ATMs, and other Synovus offices in Georgia, Alabama, South Carolina, Florida and Tennessee; and electronic payment processing through an 81-percent stake in TSYS (NYSE: TSS), one of the world’s largest companies for outsourced payment services.