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Five analysts and top management from twenty-five sector firms examine the eastern regional banks sector in this special 127-page Eastern Regional Banks issue from The Wall Street Transcript, available at (212/952-7433) or http://www.twst.com/info/info481.htm.

TWST: You said earlier that revenue challenges were one of the issues that shaped the environment for banks in 2001. Would you care to elaborate?

Ms. Reeves: The revenue challenge faced by each of the banks in 2001 was broad-based. The recession and the horrific events of September 11 compounded the challenges that these management teams were already trying to address. Many companies were addressing the expense base, perhaps they were not hiring like they had and some were paring back prior to September 2001. The large deals of the late 1990s are still being digested and many companies choose not to eliminate a large number of positions because of the scarcity of talent. 2001 changed the scarcity of talent, as many companies were forced to address the slower revenue growth by cutting the expense base. And even today I would have to argue that there are specific businesses where people are still holding onto talent, because it’s expected that those businesses will rebound. But we just haven’t seen it yet, so they’re holding expenses on the books longer, which is exacerbating the revenue challenge issue.

TWST: Is there anyone else you’d highlight at this point?

Ms. Reeves: I also like Synovus, and I mentioned them earlier in the context of their processing, which brings them not only to the Northeast, but actually brings global to their mix. Synovus Financial is a diverse financial services company that reaches from the Southeast to Mexico, Canada, and Europe. The Synovus bank (NYSE:SNV) network is autonomous and empowered, comprised of 39 banks in Georgia, Florida, Alabama, and South Carolina. SNV provides trust, full-service brokerage, and mortgage services across the Southeast. The company owns 80.8% of one of the world’s largest information technology processors, Total System Services, Inc. (NYSE:TSS). TSS leads the industry in service and technology for financial institutions. Total System provides credit, debit, commercial and private label cards and the company is processing 218 million card holders. We expect SNV to incur some near-term pressure as additional new contracts could add to the expense side of the equation prior to the revenue stream. The company is rolling out a new debit card product, which incorporates its state-of-the-art TS2 platform into this arena, which could be revolutionary. The challenges with the company’s client, Providian (NYSE:PVN), reside with the lack of growth and potential account volume usage. We expect SNV’s international volume growth to partially offset this setback, but the remainder should come from additional card accounts. We expect SNV to expand its international business, specifically, the Japanese market which is expected to amount to 120 million to 125 million credit card accounts. Also, the country has a “chip” mandatory by 2006. We expect the company’s GP Net business to be moved to within TSYS Japan. We believe this particular market could require additional investments such as a data center and the completion of the double-byte program. Using the UK expansion as a model, we expect the company to have secured a client prior to investing additional capital. Management stated its goal for achieving EPS growth of 15%-18% in 2002-2003, and our estimates are for 15% expansion. On the credit quality front, we believe SNV’s culture is strong.

This special issue includes:

1) Eastern Regional Banks - In an in-depth (13,500 words) Analyst Roundtable, Nancy A. Bush, Managing Director at Ryan Beck & Co., Gerard S. Cassidy, Managing Director of Equity Research at RBC Capital Markets and Christopher Marinac, Managing Director at SunTrust Robinson Humphrey, examine the outlook for the sector including stock performance in 2001, regulatory outlook and share specific stock recommendations.

2) Super-Regional Banks - In an in-depth (4,100 words) Analyst Interview, Jennifer A. Thompson, Analyst at Putnam Lovell Securities, Inc., examines the outlook for the sector including and shares specific stock recommendations.

3) Eastern Banks - In an in-depth (3,100 words) Analyst Interview, Jacqueline Reeves, Managing Director at Putnam Lovell Securities, Inc., examines the outlook for the sector including and shares specific stock recommendations.

4) The TWST confidential Off-The-Record survey of management performance of nineteen sector firms asked market insiders about the ability of management teams to create shareholder value.

5) CEO interviews (average 2,500 words). Top management of twenty-five sector firms examine the outlook for their firm and the sector.