0000018349us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Member2022-06-30

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

For the quarterly period ended ~~September~~June 30, ~~2021~~2022

Commission file number 1-10312

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

Columbus,

Georgia

31901

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (706) 641-6500


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $1.00 Par Value	SNV	New York Stock Exchange
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D	SNV - PrD	New York Stock Exchange
Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series E	SNV - PrE	New York Stock Exchange

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 ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of ~~October~~July 31, ~~2021, 145,510,920~~2022, 145,369,831 shares of the registrant's common stock, $1.00 par value, were outstanding.

Table of Contents

Page

Part I.

Financial Information

Index of Defined Terms

Item 1.

Financial Statements (Unaudited)

Consolidated Balance Sheets as of ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020~~2021

Consolidated Statements of Income for the Three and ~~Nine~~Six Months Ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021

Consolidated Statements of Comprehensive Income (Loss) for the Three and ~~Nine~~Six Months Ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021

Consolidated Statements of Changes in Shareholders' Equity for the Three and ~~Nine~~Six Months Ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021

Consolidated Statements of Cash Flows for the ~~Nine~~Six Months Ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021

Notes to Unaudited Interim Consolidated Financial Statements

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

3637

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

6260

Item 4.

Controls and Procedures

6260

Part II.

Other Information

Item 1.

Legal Proceedings

6361

Item 1A.

Risk Factors

6361

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

6361

Item 3.

Defaults Upon Senior Securities

6361

Item 4.

Mine Safety Disclosures

6361

Item 5.

Other Information

6361

Item 6.

Exhibits

6462

Signatures

6563

SYNOVUS FINANCIAL CORP.

INDEX OF DEFINED TERMS

Throughout this discussion, references to "Synovus", "we", "our", "us", "the Company" and similar terms refer to the consolidated entity consisting of Synovus Financial Corp. and its subsidiaries unless the context indicates that we refer only to the Parent Company, Synovus Financial Corp. When we refer to the "Bank" or "Synovus Bank" we mean our only bank subsidiary, Synovus Bank.

ACL – Allowance for credit losses (ALL, reserve on unfunded loan commitments, and reserve, if required, on debt securities)

ALCO – Synovus' Asset Liability Management Committee

ALL – Allowance for loan losses

AOCI – Accumulated other comprehensive income (loss)

ARRC – Alternative Reference Rates Committee

ASC – Accounting Standards Codification

ASU – Accounting Standards Update

ATM – Automatic teller machine

Basel III – The third Basel Accord developed by the Basel Committee on Banking Supervision to strengthen existing regulatory capital requirements

BOLI – Bank-owned life insurance

bp(s) – Basis point(s)

BSBY – Bloomberg Short-Term Bank Yield Index

C&I – Commercial and industrial

CARES Act – The Coronavirus Aid, Relief, and Economic Security Act

CDI – Core Deposit Intangible

CECL – Current expected credit losses

CET1 – Common Equity Tier 1 Capital defined by Basel III capital rules

CMO – Collateralized mortgage obligation

Code – Internal Revenue Code, as amended

Company – Synovus Financial Corp. and its wholly-owned subsidiaries, except where the context requires otherwise

Covered Litigation – Certain Visa litigation for which Visa is indemnified by Visa USA members

COVID-19 – Coronavirus disease 2019

CRA – Community Reinvestment Act

CRE – Commercial real estate

ESG – Environmental, social, and governance

EVE – Economic value of equity

Exchange Act – Securities Exchange Act of 1934, as amended

FASB – Financial Accounting Standards Board

FCA – Financial Conduct Authority, a regulatory authority of the United Kingdom

FDIC – Federal Deposit Insurance Corporation

Federal Reserve Bank – ~~The~~One of the 12 banks that are the operating arms of the U.S. central bank. They implement the policies of the Federal Reserve Board, supervise bank holding companies and certain banking institutions, and also conduct economic research

Federal Reserve Board – The 7-member Board of Governors that oversees the Federal Reserve System, establishes monetary policy (interest rates, credit, etc.), and monitors the economic health of the country. Its members are appointed by the President subject to Senate confirmation, and serve 14-year terms

Federal Reserve System or Federal Reserve – The Federal Reserve Board plus 12 Federal Reserve Banks, with each one serving member banks in its own district. ~~This system, supervised by the~~The Federal Reserve, ~~Board,~~ has broad regulatory powers over the money supply and the credit structure of the economy

FFIEC – Federal Financial Institutions Examination Council

FFIEC Retail Credit Classification Policy – FFIEC Uniform Retail Credit Classification and Account Management Policy

FHLB – Federal Home Loan Bank

FICO – Fair Isaac Corporation

~~FMS~~ ~~– Financial Management Services, a division of Synovus Bank~~

FTP – Funds transfer pricing

GA DBF – Georgia Department of Banking and Finance

GAAP – Generally Accepted Accounting Principles in the United States of America

GGL – Government guaranteed loans

Global One – Entaire Global Companies, Inc., the parent company of Global One Financial, Inc., as acquired by Synovus in 2016

~~HELOC~~ ~~– Home equity line of credit~~

Interagency Supervisory Guidance – Interagency Supervisory Guidance on Allowance for Loan and Lease Losses Estimation Practices for Loans and Lines of Credit Secured by Junior Liens on 1-4 Family Residential Properties

LIBOR – London Interbank Offered Rate

LIHTC – Low Income Housing Tax Credit

LTV – Loan-to-collateral value ratio

MBS – Mortgage-backed security

MPS – Merchant processing servicer(s)

NAICS – North American Industry Classification System

nm – not meaningful

NPA – Non-performing assets

NPL – Non-performing loans

NSF – Non-sufficient funds

OCI – Other comprehensive income (loss)

ORE – Other real estate

~~P&I~~ ~~– Principal and interest~~

Parent Company – Synovus Financial Corp.

PPP – Paycheck Protection Program established as part of the CARES Act and launched on April 3, 2020 by the SBA and Treasury

SAB –Staff Accounting Bulletin

SBA – Small Business Administration

SBIC – Small Business Investment Company

SEC – U.S. Securities and Exchange Commission

Securities Act – Securities Act of 1933, as amended

Series D Preferred Stock – Synovus' Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D, $25 liquidation preference

Series E Preferred Stock – Synovus' Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series E, $25 liquidation preference

SOFR – Secured Overnight Financing Rate

Synovus – Synovus Financial Corp.

Synovus Bank – A Georgia state-chartered bank and wholly-owned subsidiary of Synovus through which Synovus conducts its banking operations

Synovus' ~~2020~~2021 Form 10-K – Synovus' Annual Report on Form 10-K for the year ended December 31, ~~2020~~2021

Synovus Forward – Synovus' revenue growth and expense efficiency initiatives announced in January of 2020

Synovus Securities – Synovus Securities, Inc., a wholly-owned subsidiary of Synovus

Synovus Trust – Synovus Trust Company, N.A., a wholly-owned subsidiary of Synovus Bank

TDR – Troubled debt restructuring (as defined in ASC 310-40)

TE-– Taxable equivalent

UPB – Unpaid principal balance

Visa – The Visa U.S.A., Inc. card association or its affiliates, collectively

Visa Class A shares – Class A shares of common stock issued by Visa are publicly traded shares which are not subject to restrictions on sale

Visa Class B shares – Class B shares of common stock issued by Visa which are subject to restrictions with respect to sale until all of the Covered Litigation has been settled. Class B shares will be convertible into Visa Class A shares using a then-current conversion ratio upon the lifting of restrictions with respect to sale of Visa Class B shares

Visa derivative – A derivative contract with the purchaser of Visa Class B shares which provides for settlements between the purchaser and Synovus based upon a change in the ratio for conversion of Visa Class B shares into Visa Class A shares

iii

PART I. FINANCIAL INFORMATION

ITEM 1. - FINANCIAL STATEMENTS

SYNOVUS FINANCIAL CORP.

CONSOLIDATED BALANCE SHEETS

(unaudited)


(in thousands, except share and per share data)	(in thousands, except share and per share data)	September 30, 2021		December 31, 2020		(in thousands, except share and per share data)	June 30, 2022		December 31, 2021
ASSETS	ASSETS					ASSETS
Cash and due from banks	Cash and due from banks	$	483,035	$	531,579	Cash and due from banks	$	583,323	$	432,925
Interest-bearing funds with Federal Reserve Bank	Interest-bearing funds with Federal Reserve Bank	2,103,497		3,586,565		Interest-bearing funds with Federal Reserve Bank	1,023,030		2,479,006
Interest earning deposits with banks	Interest earning deposits with banks	23,261		20,944		Interest earning deposits with banks	29,139		25,535
Federal funds sold and securities purchased under resale agreements	Federal funds sold and securities purchased under resale agreements	77,627		113,829		Federal funds sold and securities purchased under resale agreements	29,568		72,387
Total cash, cash equivalents, and restricted cash	Total cash, cash equivalents, and restricted cash	2,687,420		4,252,917		Total cash, cash equivalents, and restricted cash	1,665,060		3,009,853
Investment securities available for sale, at fair value	Investment securities available for sale, at fair value	10,481,071		7,962,438		Investment securities available for sale, at fair value	9,889,850		10,918,329
Loans held for sale (includes $152,258 and $216,647 measured at fair value, respectively)		550,948		760,123
Loans held for sale (includes $76,864 and $108,198 measured at fair value, respectively)						Loans held for sale (includes $76,864 and $108,198 measured at fair value, respectively)	917,679		750,642
Loans, net of deferred fees and costs	Loans, net of deferred fees and costs	38,341,030		38,252,984		Loans, net of deferred fees and costs	41,204,780		39,311,958
Allowance for loan losses	Allowance for loan losses	(492,243)		(605,736)		Allowance for loan losses	(407,837)		(427,597)
Loans, net	Loans, net	37,848,787		37,647,248		Loans, net	40,796,943		38,884,361
Cash surrender value of bank-owned life insurance	Cash surrender value of bank-owned life insurance	1,065,256		1,049,373		Cash surrender value of bank-owned life insurance	1,078,703		1,068,616
Premises, equipment, and software, net	Premises, equipment, and software, net	423,933		463,959		Premises, equipment, and software, net	383,060		407,241
Goodwill	Goodwill	452,390		452,390		Goodwill	452,390		452,390
Other intangible assets, net	Other intangible assets, net	37,975		45,112		Other intangible assets, net	31,360		35,596
Other assets	Other assets	1,961,349		1,760,599		Other assets	2,167,700		1,790,198
Total assets	Total assets	$	55,509,129	$	54,394,159	Total assets	$	57,382,745	$	57,317,226
LIABILITIES AND SHAREHOLDERS' EQUITY	LIABILITIES AND SHAREHOLDERS' EQUITY					LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities	Liabilities					Liabilities
Deposits:	Deposits:					Deposits:
Non-interest-bearing deposits	Non-interest-bearing deposits	$	15,787,882	$	13,477,854	Non-interest-bearing deposits	$	16,876,710	$	16,392,653
Interest-bearing deposits	Interest-bearing deposits	31,900,537		33,213,717		Interest-bearing deposits	32,157,990		33,034,623
Total deposits	Total deposits	47,688,419		46,691,571		Total deposits	49,034,700		49,427,276
Federal funds purchased and securities sold under repurchase agreements	Federal funds purchased and securities sold under repurchase agreements	262,548		227,922		Federal funds purchased and securities sold under repurchase agreements	345,242		264,133
Other short-term borrowings		—		7,717
Long-term debt	Long-term debt	1,203,761		1,202,494		Long-term debt	1,804,104		1,204,229
Other liabilities	Other liabilities	1,101,599		1,103,121		Other liabilities	1,614,261		1,124,788
Total liabilities	Total liabilities	50,256,327		49,232,825		Total liabilities	52,798,307		52,020,426
Shareholders' Equity	Shareholders' Equity					Shareholders' Equity
Preferred stock - no par value; authorized 100,000,000 shares; issued 22,000,000		537,145		537,145
Common stock - $1.00 par value; authorized 342,857,143 shares; issued 169,170,589 and 168,132,522; outstanding 145,483,994 and 148,039,495		169,171		168,133
Preferred stock - 0 par value; authorized 100,000,000 shares; issued 22,000,000						Preferred stock - 0 par value; authorized 100,000,000 shares; issued 22,000,000	537,145		537,145
Common stock - $1.00 par value; authorized 342,857,143 shares; issued 170,012,527 and 169,383,758; outstanding 145,357,669 and 145,010,086						Common stock - $1.00 par value; authorized 342,857,143 shares; issued 170,012,527 and 169,383,758; outstanding 145,357,669 and 145,010,086	170,013		169,384
Additional paid-in capital	Additional paid-in capital	3,883,289		3,851,208		Additional paid-in capital	3,908,118		3,894,109
Treasury stock, at cost; 23,686,595 and 20,093,027 shares		(898,707)		(731,806)
Accumulated other comprehensive (loss) income, net		(5,462)		158,635
Treasury stock, at cost; 24,654,858 and 24,373,672 shares						Treasury stock, at cost; 24,654,858 and 24,373,672 shares	(944,484)		(931,497)
Accumulated other comprehensive income (loss), net						Accumulated other comprehensive income (loss), net	(1,026,705)		(82,321)
Retained earnings	Retained earnings	1,567,366		1,178,019		Retained earnings	1,940,351		1,709,980
Total shareholders' equity	Total shareholders' equity	5,252,802		5,161,334		Total shareholders' equity	4,584,438		5,296,800
Total liabilities and shareholders' equity	Total liabilities and shareholders' equity	$	55,509,129	$	54,394,159	Total liabilities and shareholders' equity	$	57,382,745	$	57,317,226

See accompanying notes to unaudited interim consolidated financial statements.

SYNOVUS FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share data)	(in thousands, except per share data)	2021		2020		2021		2020		(in thousands, except per share data)	2022		2021		2022		2021
Interest income:	Interest income:									Interest income:
Loans, including fees	Loans, including fees	$	369,323	$	384,275	$	1,113,102	$	1,213,609	Loans, including fees	$	391,307	$	371,288	$	752,399	$	743,779
Investment securities available for sale	Investment securities available for sale	35,876		43,196		98,631		139,784		Investment securities available for sale	50,312		33,298		97,562		62,755
Loans held for sale	Loans held for sale	5,540		6,341		18,611		9,047		Loans held for sale	8,600		6,609		14,781		13,071
Federal Reserve Bank balances	Federal Reserve Bank balances	1,214		285		2,597		2,187		Federal Reserve Bank balances	1,593		709		2,382		1,383
Other earning assets	Other earning assets	551		1,453		2,123		6,389		Other earning assets	1,960		839		2,710		1,572
Total interest income	Total interest income	412,504		435,550		1,235,064		1,371,016		Total interest income	453,772		412,743		869,834		822,560
Interest expense:	Interest expense:									Interest expense:
Deposits	Deposits	16,086		43,194		60,475		185,670		Deposits	18,501		19,371		32,160		44,389
Federal funds purchased, securities sold under repurchase agreements, and other short-term borrowings		36		176		104		7,885
Long-term debt	Long-term debt	11,465		15,190		33,851		50,645		Long-term debt	8,769		11,478		18,913		22,386
Other borrowings										Other borrowings	1,114		34		1,126		69
Total interest expense	Total interest expense	27,587		58,560		94,430		244,200		Total interest expense	28,384		30,883		52,199		66,844
Net interest income	Net interest income	384,917		376,990		1,140,634		1,126,816		Net interest income	425,388		381,860		817,635		755,716
(Reversal of) provision for credit losses		(7,868)		43,383		(51,041)		343,956
Net interest income after (reversal of) provision for credit losses		392,785		333,607		1,191,675		782,860
Provision for (reversal of) credit losses										Provision for (reversal of) credit losses	12,688		(24,598)		24,088		(43,173)
Net interest income after provision for (reversal of) credit losses										Net interest income after provision for (reversal of) credit losses	412,700		406,458		793,547		798,889
Non-interest revenue:	Non-interest revenue:									Non-interest revenue:
Service charges on deposit accounts	Service charges on deposit accounts	22,641		17,813		64,089		54,069		Service charges on deposit accounts	23,491		21,414		46,030		41,448
Fiduciary and asset management fees	Fiduciary and asset management fees	19,786		15,885		56,545		46,009		Fiduciary and asset management fees	20,100		18,805		40,377		36,759
Card fees	Card fees	13,238		10,823		38,538		30,959		Card fees	16,089		13,304		30,846		25,300
Brokerage revenue	Brokerage revenue	14,745		10,604		41,644		32,987		Brokerage revenue	15,243		13,926		29,898		26,899
Mortgage banking income	Mortgage banking income	11,155		31,229		47,312		66,987		Mortgage banking income	3,904		13,842		9,857		36,157
Capital markets income	Capital markets income	8,089		5,690		18,929		22,984		Capital markets income	7,393		3,335		12,864		10,840
Income from bank-owned life insurance	Income from bank-owned life insurance	6,820		7,778		22,851		21,572		Income from bank-owned life insurance	9,165		7,188		15,722		16,031
Investment securities gains (losses), net	Investment securities gains (losses), net	962		(1,550)		(1,028)		76,594		Investment securities gains (losses), net	—		—		—		(1,990)
Other non-interest revenue	Other non-interest revenue	17,519		16,139		44,117		39,591		Other non-interest revenue	1,881		15,273		17,006		26,599
Total non-interest revenue	Total non-interest revenue	114,955		114,411		332,997		391,752		Total non-interest revenue	97,266		107,087		202,600		218,043
Non-interest expense:	Non-interest expense:									Non-interest expense:
Salaries and other personnel expense	Salaries and other personnel expense	160,364		154,994		482,408		464,268		Salaries and other personnel expense	161,063		160,567		325,747		322,044
Net occupancy, equipment, and software expense	Net occupancy, equipment, and software expense	43,483		41,554		126,442		125,475		Net occupancy, equipment, and software expense	43,199		41,825		86,076		82,959
Third-party processing and other services	Third-party processing and other services	19,446		21,827		63,897		67,193		Third-party processing and other services	21,952		24,419		42,947		44,451
Professional fees	Professional fees	6,739		13,377		23,771		39,358		Professional fees	10,865		7,947		19,338		17,031
FDIC insurance and other regulatory fees	FDIC insurance and other regulatory fees	5,212		6,793		16,338		18,922		FDIC insurance and other regulatory fees	6,894		5,547		13,144		11,127
Goodwill impairment		—		44,877		—		44,877
Other operating expenses		31,788		33,233		91,841		116,983
Restructuring charges										Restructuring charges	(1,850)		415		(8,274)		946
Other operating expense										Other operating expense	39,928		29,811		75,523		59,107
Total non-interest expense	Total non-interest expense	267,032		316,655		804,697		877,076		Total non-interest expense	282,051		270,531		554,501		537,665
Income before income taxes	Income before income taxes	240,708		131,363		719,975		297,536		Income before income taxes	227,915		243,014		441,646		479,267
Income tax expense	Income tax expense	53,935		39,789		159,910		74,250		Income tax expense	49,863		56,814		92,558		105,975
Net income	Net income	186,773		91,574		560,065		223,286		Net income	178,052		186,200		349,088		373,292
Less: Preferred stock dividends	Less: Preferred stock dividends	8,291		8,291		24,872		24,872		Less: Preferred stock dividends	8,291		8,291		16,581		16,581
Net income available to common shareholders	Net income available to common shareholders	$	178,482	$	83,283	$	535,193	$	198,414	Net income available to common shareholders	$	169,761	$	177,909	$	332,507	$	356,711
Net income per common share, basic	Net income per common share, basic	$	1.22	$	0.57	$	3.63	$	1.35	Net income per common share, basic	$	1.17	$	1.20	$	2.29	$	2.41
Net income per common share, diluted	Net income per common share, diluted	1.21		0.56		3.59		1.34		Net income per common share, diluted	1.16		1.19		2.27		2.38
Weighted average common shares outstanding, basic	Weighted average common shares outstanding, basic	146,308		147,314		147,622		147,304		Weighted average common shares outstanding, basic	145,328		148,113		145,301		148,289
Weighted average common shares outstanding, diluted	Weighted average common shares outstanding, diluted	147,701		147,976		149,069		148,037		Weighted average common shares outstanding, diluted	146,315		149,747		146,489		149,764

See accompanying notes to unaudited interim consolidated financial statements.

SYNOVUS FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(unaudited)


		Three Months Ended September 30,													Three Months Ended June 30,
		2021						2020							2022						2021
(in thousands)	(in thousands)	Before-tax Amount		Income Tax		Net of Tax Amount		Before-tax Amount		Income Tax		Net of Tax Amount		(in thousands)	Before-tax Amount		Income Tax		Net of Tax Amount		Before-tax Amount		Income Tax		Net of Tax Amount
Net income	Net income	$	240,708	$	(53,935)	$	186,773	$	131,363	$	(39,789)	$	91,574	Net income	$	227,915	$	(49,863)	$	178,052	$	243,014	$	(56,814)	$	186,200
Unrealized gains (losses) on investment securities available for sale:	Unrealized gains (losses) on investment securities available for sale:													Unrealized gains (losses) on investment securities available for sale:
Net unrealized gains (losses) arising during the period	Net unrealized gains (losses) arising during the period	(55,472)		14,035		(41,437)		(29,428)		7,622		(21,806)		Net unrealized gains (losses) arising during the period	(429,408)		102,328		(327,080)		46,342		(11,725)		34,617
Reclassification adjustment for realized (gains) losses included in net income	Reclassification adjustment for realized (gains) losses included in net income	(962)		243		(719)		1,550		(401)		1,149		Reclassification adjustment for realized (gains) losses included in net income	—		—		—		—		—		—
Net change	Net change	(56,434)		14,278		(42,156)		(27,878)		7,221		(20,657)		Net change	(429,408)		102,328		(327,080)		46,342		(11,725)		34,617
Unrealized gains (losses) on derivative instruments designated as cash flow hedges:	Unrealized gains (losses) on derivative instruments designated as cash flow hedges:													Unrealized gains (losses) on derivative instruments designated as cash flow hedges:
Net unrealized gains (losses) arising during the period	Net unrealized gains (losses) arising during the period	(8,081)		2,044		(6,037)		(8,954)		2,319		(6,635)		Net unrealized gains (losses) arising during the period	(48,332)		11,517		(36,815)		(1,923)		486		(1,437)
Reclassification adjustment for realized (gains) losses included in net income	Reclassification adjustment for realized (gains) losses included in net income	(4,009)		1,014		(2,995)		(1,031)		267		(764)		Reclassification adjustment for realized (gains) losses included in net income	(978)		233		(745)		(3,657)		925		(2,732)
Net change	Net change	(12,090)		3,058		(9,032)		(9,985)		2,586		(7,399)		Net change	(49,310)		11,750		(37,560)		(5,580)		1,411		(4,169)
Total other comprehensive income (loss)	Total other comprehensive income (loss)	$	(68,524)	$	17,336	$	(51,188)	$	(37,863)	$	9,807	$	(28,056)	Total other comprehensive income (loss)	$	(478,718)	$	114,078	$	(364,640)	$	40,762	$	(10,314)	$	30,448
Comprehensive income						$	135,585					$	63,518
Comprehensive income (loss)														Comprehensive income (loss)					$	(186,588)					$	216,648

		Nine Months Ended September 30,													Six Months Ended June 30,
		2021						2020							2022						2021
(in thousands)	(in thousands)	Before-tax Amount		Income Tax		Net of Tax Amount		Before-tax Amount		Income Tax		Net of Tax Amount		(in thousands)	Before-tax Amount		Income Tax		Net of Tax Amount		Before-tax Amount		Income Tax		Net of Tax Amount
Net income	Net income	$	719,975	$	(159,910)	$	560,065	$	297,536	$	(74,250)	$	223,286	Net income	$	441,646	$	(92,558)	$	349,088	$	479,267	$	(105,975)	$	373,292
Unrealized gains (losses) on investment securities available for sale:	Unrealized gains (losses) on investment securities available for sale:													Unrealized gains (losses) on investment securities available for sale:
Net unrealized gains (losses) arising during the period	Net unrealized gains (losses) arising during the period	(174,371)		45,091		(129,280)		116,975		(30,297)		86,678		Net unrealized gains (losses) arising during the period	(1,050,890)		249,351		(801,539)		(118,899)		31,056		(87,843)
Reclassification adjustment for realized (gains) losses included in net income	Reclassification adjustment for realized (gains) losses included in net income	1,028		(272)		756		(76,594)		19,838		(56,756)		Reclassification adjustment for realized (gains) losses included in net income	—		—		—		1,990		(515)		1,475
Net change	Net change	(173,343)		44,819		(128,524)		40,381		(10,459)		29,922		Net change	(1,050,890)		249,351		(801,539)		(116,909)		30,541		(86,368)
Unrealized gains (losses) on derivative instruments designated as cash flow hedges:	Unrealized gains (losses) on derivative instruments designated as cash flow hedges:													Unrealized gains (losses) on derivative instruments designated as cash flow hedges:
Net unrealized gains (losses) arising during the period	Net unrealized gains (losses) arising during the period	(39,061)		10,404		(28,657)		108,508		(28,104)		80,404		Net unrealized gains (losses) arising during the period	(184,310)		43,878		(140,432)		(30,980)		8,360		(22,620)
Reclassification adjustment for realized (gains) losses included in net income	Reclassification adjustment for realized (gains) losses included in net income	(9,265)		2,349		(6,916)		(1,421)		368		(1,053)		Reclassification adjustment for realized (gains) losses included in net income	(3,167)		754		(2,413)		(5,256)		1,335		(3,921)
Net change	Net change	(48,326)		12,753		(35,573)		107,087		(27,736)		79,351		Net change	(187,477)		44,632		(142,845)		(36,236)		9,695		(26,541)
Total other comprehensive income (loss)	Total other comprehensive income (loss)	$	(221,669)	$	57,572	$	(164,097)	$	147,468	$	(38,195)	$	109,273	Total other comprehensive income (loss)	$	(1,238,367)	$	293,983	$	(944,384)	$	(153,145)	$	40,236	$	(112,909)
Comprehensive income						$	395,968					$	332,559
Comprehensive income (loss)														Comprehensive income (loss)					$	(595,296)					$	260,383

See accompanying notes to unaudited interim consolidated financial statements.

SYNOVUS FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(unaudited)


(in thousands, except per share data)	(in thousands, except per share data)	Preferred Stock		Common Stock		Additional Paid-in Capital		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total		(in thousands, except per share data)	Preferred Stock		Common Stock		Additional Paid-in Capital		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total
Balance at June 30, 2021		$	537,145	$	169,108	$	3,872,949	$	(824,197)	$	45,726	$	1,436,983	$	5,237,714
Balance at March 31, 2022																Balance at March 31, 2022	$	537,145	$	169,912	$	3,899,269	$	(941,168)	$	(662,065)	$	1,821,542	$	4,824,635
Net income																Net income	—		—		—		—		—		178,052		178,052
Other comprehensive income (loss), net of income taxes																Other comprehensive income (loss), net of income taxes	—		—		—		—		(364,640)		—		(364,640)
Cash dividends declared on common stock - $0.34 per share																Cash dividends declared on common stock - $0.34 per share	—		—		—		—		—		(49,416)		(49,416)
Cash dividends declared on preferred stock(1)																Cash dividends declared on preferred stock(1)	—		—		—		—		—		(8,291)		(8,291)
Repurchases of common stock including costs to repurchase																Repurchases of common stock including costs to repurchase	—		—		—		(3,316)		—		—		(3,316)
Restricted share unit vesting and taxes paid related to net share settlement																Restricted share unit vesting and taxes paid related to net share settlement	—		48		1,086		—		—		(1,536)		(402)
Stock options exercised, net																Stock options exercised, net	—		53		919		—		—		—		972
Share-based compensation expense																Share-based compensation expense	—		—		6,844		—		—		—		6,844
Balance at June 30, 2022																Balance at June 30, 2022	$	537,145	$	170,013	$	3,908,118	$	(944,484)	$	(1,026,705)	$	1,940,351	$	4,584,438

Balance at March 31, 2021																Balance at March 31, 2021	$	537,145	$	168,978	$	3,864,281	$	(731,690)	$	15,278	$	1,307,725	$	5,161,717
Net income	Net income	—		—		—		—		—		186,773		186,773		Net income	—		—		—		—		—		186,200		186,200
Other comprehensive income (loss), net of income taxes	Other comprehensive income (loss), net of income taxes	—		—		—		—		(51,188)		—		(51,188)		Other comprehensive income (loss), net of income taxes	—		—		—		—		30,448		—		30,448
Cash dividends declared on common stock - $0.33 per share	Cash dividends declared on common stock - $0.33 per share	—		—		—		—		—		(48,099)		(48,099)		Cash dividends declared on common stock - $0.33 per share	—		—		—		—		—		(48,651)		(48,651)
Cash dividends declared on preferred stock(1)	Cash dividends declared on preferred stock(1)	—		—		—		—		—		(8,291)		(8,291)		Cash dividends declared on preferred stock(1)	—		—		—		—		—		(8,291)		(8,291)
Repurchases of common stock including costs to repurchase	Repurchases of common stock including costs to repurchase	—		—		—		(74,635)		—		—		(74,635)		Repurchases of common stock including costs to repurchase	—		—		—		(92,507)		—		—		(92,507)
Issuance of common stock for earnout payment		—		—		4,955		125		—		—		5,080
Restricted share unit vesting and taxes paid related to net share settlement	Restricted share unit vesting and taxes paid related to net share settlement	—		37		(650)		—		—		—		(613)		Restricted share unit vesting and taxes paid related to net share settlement	—		35		(429)		—		—		—		(394)
Stock options exercised, net	Stock options exercised, net	—		26		520		—		—		—		546		Stock options exercised, net	—		95		2,232		—		—		—		2,327
Share-based compensation expense	Share-based compensation expense	—		—		5,515		—		—		—		5,515		Share-based compensation expense	—		—		6,865		—		—		—		6,865
Balance at September 30, 2021		$	537,145	$	169,171	$	3,883,289	$	(898,707)	$	(5,462)	$	1,567,366	$	5,252,802
Balance at June 30, 2021																Balance at June 30, 2021	$	537,145	$	169,108	$	3,872,949	$	(824,197)	$	45,726	$	1,436,983	$	5,237,714

Balance at June 30, 2020		$	537,145	$	167,406	$	3,826,726	$	(731,806)	$	202,970	$	1,050,527	$	5,052,968
Net income		—		—		—		—		—		91,574		91,574
Other comprehensive income (loss), net of income taxes		—		—		—		—		(28,056)		—		(28,056)
Cash dividends declared on common stock - $0.33 per share		—		—		—		—		—		(48,614)		(48,614)
Cash dividends declared on preferred stock(1)		—		—		—		—		—		(8,291)		(8,291)
Restricted share unit vesting and taxes paid related to net share settlement		—		2		434		—		—		(460)		(24)
Stock options exercised, net		—		3		30		—		—		—		33
Share-based compensation expense		—		—		4,952		—		—		—		4,952
Balance at September 30, 2020		$	537,145	$	167,411	$	3,832,142	$	(731,806)	$	174,914	$	1,084,736	$	5,064,542


(in thousands, except per share data)	(in thousands, except per share data)	Preferred Stock		Common Stock		Additional Paid-in Capital		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total		(in thousands, except per share data)	Preferred Stock		Common Stock		Additional Paid-in Capital		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total

Balance at December 31, 2020		$	537,145	$	168,133	$	3,851,208	$	(731,806)	$	158,635	$	1,178,019	$	5,161,334
Balance at December 31, 2021																Balance at December 31, 2021	$	537,145	$	169,384	$	3,894,109	$	(931,497)	$	(82,321)	$	1,709,980	$	5,296,800
Net income	Net income	—		—		—		—		—		560,065		560,065		Net income	—		—		—		—		—		349,088		349,088
Other comprehensive income (loss), net of income taxes	Other comprehensive income (loss), net of income taxes	—		—		—		—		(164,097)		—		(164,097)		Other comprehensive income (loss), net of income taxes	—		—		—		—		(944,384)		—		(944,384)
Cash dividends declared on common stock - $0.99 per share		—		—		—		—		—		(145,843)		(145,843)
Cash dividends declared on preferred stock(2)		—		—		—		—		—		(24,872)		(24,872)
Repurchases of common stock including costs to repurchase		—		—		—		(167,142)		—		—		(167,142)
Issuance of common stock for earnout payment		—		—		4,955		125		—		—		5,080
Restricted share unit vesting and taxes paid related to net share settlement		—		343		(7,535)		—		—		—		(7,192)
Stock options exercised, net		—		695		14,730		—		—		—		15,425
Warrants exercised with net settlement and common stock reissued		—		—		(113)		116		—		(3)		—
Share-based compensation expense		—		—		20,044		—		—		—		20,044
Balance at September 30, 2021		$	537,145	$	169,171	$	3,883,289	$	(898,707)	$	(5,462)	$	1,567,366	$	5,252,802

Balance at December 31, 2019		$	537,145	$	166,801	$	3,819,336	$	(715,560)	$	65,641	$	1,068,327	$	4,941,690
Cumulative-effect of change in accounting principle for credit losses (ASU 2016-13), net of tax		—		—		—		—		—		(35,721)		(35,721)
Net income		—		—		—		—		—		223,286		223,286
Other comprehensive income (loss), net of income taxes		—		—		—		—		109,273		—		109,273
Cash dividends declared on common stock - $0.99 per share		—		—		—		—		—		(145,824)		(145,824)
Cash dividends declared on common stock - $0.68 per share																Cash dividends declared on common stock - $0.68 per share	—		—		—		—		—		(98,858)		(98,858)
Cash dividends declared on preferred stock(2)	Cash dividends declared on preferred stock(2)	—		—		—		—		—		(24,872)		(24,872)		Cash dividends declared on preferred stock(2)	—		—		—		—		—		(16,581)		(16,581)
Repurchases of common stock including costs to repurchase	Repurchases of common stock including costs to repurchase	—		—		—		(16,246)		—		—		(16,246)		Repurchases of common stock including costs to repurchase	—		—		—		(12,987)		—		—		(12,987)
Restricted share unit vesting and taxes paid related to net share settlement	Restricted share unit vesting and taxes paid related to net share settlement	—		381		(7,349)		—		—		(460)		(7,428)		Restricted share unit vesting and taxes paid related to net share settlement	—		350		(3,196)		—		—		(3,278)		(6,124)
Stock options exercised, net	Stock options exercised, net	—		229		6,282		—		—		—		6,511		Stock options exercised, net	—		279		2,460		—		—		—		2,739
Share-based compensation expense	Share-based compensation expense	—		—		13,873		—		—		—		13,873		Share-based compensation expense	—		—		14,745		—		—		—		14,745
Balance at September 30, 2020		$	537,145	$	167,411	$	3,832,142	$	(731,806)	$	174,914	$	1,084,736	$	5,064,542
Balance at June 30, 2022																Balance at June 30, 2022	$	537,145	$	170,013	$	3,908,118	$	(944,484)	$	(1,026,705)	$	1,940,351	$	4,584,438

Balance at December 31, 2020																Balance at December 31, 2020	$	537,145	$	168,133	$	3,851,208	$	(731,806)	$	158,635	$	1,178,019	$	5,161,334
Net income																Net income	—		—		—		—		—		373,292		373,292
Other comprehensive income (loss), net of income taxes																Other comprehensive income (loss), net of income taxes	—		—		—		—		(112,909)		—		(112,909)
Cash dividends declared on common stock - $0.66 per share																Cash dividends declared on common stock - $0.66 per share	—		—		—		—		—		(97,744)		(97,744)
Cash dividends declared on preferred stock(2)																Cash dividends declared on preferred stock(2)	—		—		—		—		—		(16,581)		(16,581)
Repurchases of common stock including costs to repurchase																Repurchases of common stock including costs to repurchase	—		—		—		(92,507)		—		—		(92,507)
Restricted share unit vesting and taxes paid related to net share settlement																Restricted share unit vesting and taxes paid related to net share settlement	—		306		(6,885)		—		—		—		(6,579)
Stock options exercised, net																Stock options exercised, net	—		669		14,210		—		—		—		14,879
Warrants exercised with net settlement and common stock reissued																Warrants exercised with net settlement and common stock reissued	—		—		(113)		116		—		(3)		—
Share-based compensation expense																Share-based compensation expense	—		—		14,529		—		—		—		14,529
Balance at June 30, 2021																Balance at June 30, 2021	$	537,145	$	169,108	$	3,872,949	$	(824,197)	$	45,726	$	1,436,983	$	5,237,714

(1) For the three months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, dividends per share were $0.39 and $0.37 for Series D and Series E Preferred Stock, respectively.

(2) For the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, dividends per share were ~~$1.18~~$0.79 and ~~$1.10~~$0.73 for Series D and Series E Preferred Stock, respectively.

See accompanying notes to unaudited interim consolidated financial statements.

SYNOVUS FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)


		Nine Months Ended September 30,					Six Months Ended June 30,
(in thousands)	(in thousands)	2021		2020		(in thousands)	2022		2021
Operating Activities	Operating Activities					Operating Activities
Net income	Net income	$	560,065	$	223,286	Net income	$	349,088	$	373,292
Adjustments to reconcile net income to net cash provided by (used in) operating activities:	Adjustments to reconcile net income to net cash provided by (used in) operating activities:					Adjustments to reconcile net income to net cash provided by (used in) operating activities:
(Reversal of) provision for credit losses		(51,041)		343,956
Provision for (reversal of) credit losses						Provision for (reversal of) credit losses	24,088		(43,173)
Depreciation, amortization, and accretion, net	Depreciation, amortization, and accretion, net	124,065		77,385		Depreciation, amortization, and accretion, net	36,991		66,572
Deferred income tax expense (benefit)	Deferred income tax expense (benefit)	36,213		(60,433)		Deferred income tax expense (benefit)	(3,227)		25,111
Originations of loans held for sale	Originations of loans held for sale	(2,872,628)		(2,221,302)		Originations of loans held for sale	(2,095,264)		(2,042,076)
Proceeds from sales and payments on loans held for sale	Proceeds from sales and payments on loans held for sale	3,117,269		1,657,738		Proceeds from sales and payments on loans held for sale	1,926,118		2,078,089
Gain on sales of loans held for sale, net	Gain on sales of loans held for sale, net	(36,930)		(50,001)		Gain on sales of loans held for sale, net	(7,277)		(27,502)
Increase in other assets		(27,443)		(397,220)
(Decrease) increase in other liabilities		(28,741)		234,018
Investment securities losses (gains), net		1,028		(76,594)
Goodwill impairment		—		44,877
(Increase) decrease in other assets						(Increase) decrease in other assets	(107,698)		(7,354)
Increase (decrease) in other liabilities						Increase (decrease) in other liabilities	72,987		(1,554)
Investment securities (gains) losses, net						Investment securities (gains) losses, net	—		1,990
Share-based compensation expense	Share-based compensation expense	21,485		13,873		Share-based compensation expense	14,511		13,131
Other	Other	—		2,057		Other	677		—
Net cash provided by (used in) operating activities	Net cash provided by (used in) operating activities	843,342		(208,360)		Net cash provided by (used in) operating activities	210,994		436,526
Investing Activities	Investing Activities					Investing Activities
Proceeds from maturities and principal collections of investment securities available for sale	Proceeds from maturities and principal collections of investment securities available for sale	2,279,073		1,567,889		Proceeds from maturities and principal collections of investment securities available for sale	1,226,967		1,616,397
Proceeds from sales of investment securities available for sale	Proceeds from sales of investment securities available for sale	223,977		2,529,722		Proceeds from sales of investment securities available for sale	—		223,977
Purchases of investment securities available for sale	Purchases of investment securities available for sale	(5,447,210)		(4,778,166)		Purchases of investment securities available for sale	(1,269,468)		(3,476,929)
Proceeds from sales of loans	Proceeds from sales of loans	105,753		1,293,366		Proceeds from sales of loans	47,130		86,650
Purchases of loans	Purchases of loans	(1,494,924)		—		Purchases of loans	(361,567)		(1,041,602)
Net decrease (increase) in loans		1,238,658		(3,703,203)
Net (increase) decrease in loans						Net (increase) decrease in loans	(1,594,366)		928,084
Net (purchases) redemptions of Federal Home Loan Bank stock	Net (purchases) redemptions of Federal Home Loan Bank stock	(1,200)		96,772		Net (purchases) redemptions of Federal Home Loan Bank stock	(45,700)		(1,200)
Net purchases of Federal Reserve Bank stock		(1,210)		(454)
Net (purchases) redemptions of Federal Reserve Bank stock						Net (purchases) redemptions of Federal Reserve Bank stock	(536)		(954)
Net proceeds from settlement (purchases) of bank-owned life insurance policies	Net proceeds from settlement (purchases) of bank-owned life insurance policies	7,094		(248,023)		Net proceeds from settlement (purchases) of bank-owned life insurance policies	3,106		6,264
Net increase in premises, equipment and software	Net increase in premises, equipment and software	(19,996)		(22,786)		Net increase in premises, equipment and software	(11,260)		(12,419)
Other	Other	8,852		41,345		Other	33,984		4,141
Net cash used in investing activities		(3,101,133)		(3,223,538)
Net cash provided by (used in) investing activities						Net cash provided by (used in) investing activities	(1,971,710)		(1,667,591)
Financing Activities	Financing Activities					Financing Activities
Net increase in deposits		996,848		6,259,108
Net increase in federal funds purchased and securities sold under repurchase agreements		34,626		36,655
Net decrease in other short-term borrowings		(7,717)		(1,353,560)
Net increase (decrease) in deposits						Net increase (decrease) in deposits	(389,758)		480,391
Net increase (decrease) in federal funds purchased and securities sold under repurchase agreements						Net increase (decrease) in federal funds purchased and securities sold under repurchase agreements	81,109		(33,135)
Net increase (decrease) in other short-term borrowings						Net increase (decrease) in other short-term borrowings	254,818		(7,717)
Repayments and redemption of long-term debt	Repayments and redemption of long-term debt	—		(1,776,913)		Repayments and redemption of long-term debt	(400,000)		—
Proceeds from issuance of long-term debt, net		—		1,248,441
Proceeds from issuance of long-term debt						Proceeds from issuance of long-term debt	1,000,000		—
Dividends paid to common shareholders	Dividends paid to common shareholders	(146,578)		(141,353)		Dividends paid to common shareholders	(97,293)		(97,927)
Dividends paid to preferred shareholders	Dividends paid to preferred shareholders	(24,872)		(24,872)		Dividends paid to preferred shareholders	(16,581)		(16,581)
Repurchases of common stock	Repurchases of common stock	(167,142)		(16,246)		Repurchases of common stock	(12,987)		(92,507)
Issuances, net of taxes paid, under equity compensation plans	Issuances, net of taxes paid, under equity compensation plans	8,233		(917)		Issuances, net of taxes paid, under equity compensation plans	(3,385)		8,300
Other		(1,104)		—
Net cash provided by financing activities		692,294		4,230,343
(Decrease) increase in cash and cash equivalents including restricted cash		(1,565,497)		798,445
Net cash provided by (used in) financing activities						Net cash provided by (used in) financing activities	415,923		240,824
Increase (decrease) in cash and cash equivalents including restricted cash						Increase (decrease) in cash and cash equivalents including restricted cash	(1,344,793)		(990,241)
Cash, cash equivalents, and restricted cash, at beginning of period	Cash, cash equivalents, and restricted cash, at beginning of period	4,252,917		1,186,918		Cash, cash equivalents, and restricted cash, at beginning of period	3,009,853		4,252,917
Cash, cash equivalents, and restricted cash at end of period	Cash, cash equivalents, and restricted cash at end of period	$	2,687,420	$	1,985,363	Cash, cash equivalents, and restricted cash at end of period	$	1,665,060	$	3,262,676

Supplemental Disclosures:	Supplemental Disclosures:					Supplemental Disclosures:
Income taxes paid	Income taxes paid	$	150,722	$	68,253	Income taxes paid	$	88,090	$	115,282
Interest paid	Interest paid	108,889		267,582		Interest paid	52,330		78,772
Non-cash Activities	Non-cash Activities					Non-cash Activities
Securities sold during the period but settled after period end		196,289		—
Securities purchased during the period but settled after period-end						Securities purchased during the period but settled after period-end	—		48,795
Premises and equipment transferred to other assets held for sale	Premises and equipment transferred to other assets held for sale	22,725		—		Premises and equipment transferred to other assets held for sale	13,372		3,864
Loans foreclosed and transferred to other real estate	Loans foreclosed and transferred to other real estate	964		2,163		Loans foreclosed and transferred to other real estate	—		801
Loans transferred (from) to other loans held for sale at fair value	Loans transferred (from) to other loans held for sale at fair value	(1,462)		46,178		Loans transferred (from) to other loans held for sale at fair value	(9,386)		—
Dividends declared on common stock during the period but paid after period-end		48,099		48,614
Dividends declared on preferred stock during the period but paid after period-end		5,141		5,141

See accompanying notes to unaudited interim consolidated financial statements.

Notes to Unaudited Interim Consolidated Financial Statements

Note 1 - Basis of Presentation and Accounting Policies

General

The accompanying unaudited interim consolidated financial statements of Synovus Financial Corp. include the accounts of the Parent Company and its consolidated subsidiaries. Synovus Financial Corp. is a financial services company based in Columbus, Georgia. Through its wholly-owned subsidiary, Synovus Bank, a Georgia state-chartered bank that is a member of the Federal Reserve System, the Company provides commercial and ~~retail~~consumer banking in addition to a full suite of specialized products and services including private banking, treasury management, wealth management, mortgage services, premium finance, asset-based lending, structured lending, and international banking. Synovus also provides financial planning, and investment advisory services through its wholly-owned subsidiaries, Synovus Trust and Synovus Securities, as well as its GLOBALT and Creative Financial Group divisions. Synovus Bank is positioned in markets in the Southeast, with ~~285~~261 branches and ~~386~~367 ATMs in Alabama, Florida, Georgia, South Carolina, and Tennessee.

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the instructions to the SEC Form 10-Q and Article 10 of Regulation S-X; therefore, they do not include all information and footnotes necessary for a fair presentation of financial position, results of operations, comprehensive income (loss), and cash flows in conformity with GAAP. All adjustments consisting of normally recurring accruals that, in the opinion of management, are necessary for a fair presentation of the consolidated financial position and results of operations for the periods covered by this Report have been included. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes appearing in Synovus' ~~2020~~2021 Form 10-K.

~~Immaterial Correction of Prior Period Financial Statements~~

During the third quarter of 2021, the Company made corrections to proceeds and purchases of investment securities available for sale by adjusting for the impact of timing differences associated with unsettled trades that crossed certain reporting periods. The Company concluded that the corrections were not material to any prior or current periods from a combined qualitative and quantitative perspective.

~~A summary of corrections is presented below.~~

Corrected Consolidated Statement of Cash Flows
(unaudited)
Nine months ended September 30, 2020
(in thousands) As Reported Adjustment As Corrected
Investing Activities
Proceeds from sales of investment securities available for sale $ 3,932,368 $ (1,402,646) $ 2,529,722
Purchases of investment securities available for sale (6,180,812) 1,402,646 (4,778,166)
Net cash used in investing activities $ (3,223,538) $ — $ (3,223,538)

Reclassifications

Prior periods' consolidated financial statements are reclassified whenever necessary to conform to the current periods' presentation.

Use of Estimates in the Preparation of Financial Statements

In preparing the consolidated financial statements in accordance with GAAP, 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 consolidated balance sheets and the reported amounts of ~~revenues~~revenue and ~~expenses~~expense for the periods presented. Actual results could differ significantly from those estimates.

Material estimates that are particularly susceptible to change relate to the determination of the ~~ACL;~~ACL, estimates of fair ~~value;~~value, income ~~taxes;~~taxes, and contingent liabilities.

~~Recently Adopted~~Recent Accounting ~~Standards~~Pronouncements

~~ASU 2020-08,~~ ~~Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable Fees~~The following table provides a brief description of accounting standards adopted or issued in 2022 and ~~Other Costs. The guidance in this ASU pertains to~~ the ~~shortened amortization period for certain purchased callable debt securities held at a premium, which premium is amortized to~~estimated effect on the ~~earliest call date in accordance with ASC 310-20-25-33, and clarifies that an entity should reevaluate whether a callable debt security is within the scope of paragraph 310-20-25-33 for each reporting~~Company’s financial statements.

period. The amendments in this ASU are effective for fiscal years beginning after December 15, 2020. Synovus adopted ASU 2020-08 effective January 1, 2021 with no material impact to the unaudited consolidated financial statements.

~~ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.~~ In December 2019, the FASB issued ASU 2019-12 to simplify and reduce complexities when accounting for income taxes by removing certain exceptions. Among the provisions of this guidance is the requirement that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date.ASU 2019-12 is effective for public entities for fiscal years beginning after December 15, 2020. Synovus adopted ASU 2019-12 effective January 1, 2021 with no material impact to the unaudited consolidated financial statements unless there are changes in tax law that require recognition as set forth in this guidance.

~~ASU 2021-06, Presentation of Financial Statements (Topic 205), Financial Services - Depository and Lending (Topic 942), and Financial Services-Investment Companies (Topic 946)~~. In August 2021, the FASB issued ASU 2021-06 which amends SEC paragraphs in the codification pursuant to SEC Final Rule Releases No. 33-10786 and No. 33-10835. These rule releases amend disclosure requirements applicable to acquisitions and dispositions of businesses and also amend statistical disclosures that banks and bank holding companies provide to investors. ASU 2021-06 eliminates disclosures that overlap with SEC rules or US GAAP. The amendments in this ASU were effective upon its addition to the FASB codification with no material effect to the unaudited financial statements.

~~Recently Issued Accounting Standards Not Yet Adopted~~

~~ASU 2021-01, Reference Rate Reform (Topic 848).~~ In January 2021, the FASB issued ASU 2021-01 which provides optional expedients and exceptions in Topic 848 for derivative instruments and hedge accounting modifications resulting from the discounting transition of reference rate reform.The expedients and exceptions provided by ASU 2021-01 will not be available after December 31, 2022, other than for existing hedging relationships entered into by December 31, 2022. The ASU may be applied as of the beginning of an interim period that includes or is subsequent to March 12, 2020, until the sunset date of December 31, 2022. Synovus adopted ASU 2020-04 ~~Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting~~ on October 1, 2020. While Synovus has not yet finalized the election of optional expedients for ASU 2021-01, we do not currently expect there to be a material financial impact to the Company regardless of which optional expedients the Company selects to replace LIBOR.


Standard	Description	Required date of adoption	Effect on Company's financial statements or other significant matters
Standards Adopted (or partially adopted )
ASU 2021-01, Reference Rate Reform (Topic 848)	In January 2021, the FASB issued ASU 2021-01 which provides optional expedients and exceptions in Topic 848 for derivative instruments and hedge accounting modifications resulting from the discounting transition of reference rate reform.	This ASU is effective upon issuance and can be applied through December 31, 2022.	The Company is in the process of evaluating and applying, as applicable, the optional expedients and exceptions in accounting for eligible contract modifications, eligible existing hedging relationships and new hedging relationships. The application of this guidance has not had and is not expected to have a material impact to the consolidated financial statements.
SAB 121, Accounting for Obligations to Safeguard Crypto-Assets an Entity Holds for its Platform Users	In March 2022, the SEC released SAB 121 to add interpretive guidance for entities to consider when they have obligations to safeguard crypto-assets held for clients. The new guidance requires reporting entities who allow clients to transact in crypto-assets and act as a custodian to record a liability with a corresponding asset regardless of whether they control the crypto-asset. The crypto-asset will need to be marked at fair value for each reporting period. The new guidance requires disclosures in the footnotes to address the amount of crypto-assets reported, and the safeguarding and recordkeeping of the assets.	June 30, 2022, with retrospective application back to the beginning of the fiscal year.	The adoption of this standard on June 30, 2022, had no impact to the consolidated financial statements.

Standard	Description	Required date of adoption	Effect on Company's financial statements or other significant matters
Standards Issued But Not Yet Adopted
ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosure	In March 2022, the FASB issued ASU 2022-02 to eliminate TDR accounting guidance while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The ASU also provides guidance for vintage table disclosures and gross write-offs. The ASU requires an entity to disclose current-period gross write-offs by year of origination for financing receivables within the scope of Subtopic 326-20.	January 1, 2023. Early adoption is permitted as of an interim period with retrospective application back to the beginning of the fiscal year.	The Company is currently evaluating the potential financial statement impact from the implementation of this standard.

Note 2 - Investment Securities Available for Sale

The amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities available for sale at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020~~2021 are summarized below.


		September 30, 2021									June 30, 2022
(in thousands)	(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury securities	U.S. Treasury securities	$	120,212	$	116	$	(2,435)	$	117,893	U.S. Treasury securities	$	414,744	$	—	$	(28,160)	$	386,584
U.S. Government agency securities	U.S. Government agency securities	53,213		1,776		—		54,989		U.S. Government agency securities	52,866		2		(1,973)		50,895
Mortgage-backed securities issued by U.S. Government agencies	Mortgage-backed securities issued by U.S. Government agencies	879,188		1,441		(8,412)		872,217		Mortgage-backed securities issued by U.S. Government agencies	713,490		6		(81,525)		631,971
Mortgage-backed securities issued by U.S. Government sponsored enterprises	Mortgage-backed securities issued by U.S. Government sponsored enterprises	7,280,571		65,605		(75,243)		7,270,933		Mortgage-backed securities issued by U.S. Government sponsored enterprises	8,144,078		557		(901,994)		7,242,641
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	1,060,803		7,736		(11,051)		1,057,488		Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	826,579		—		(73,493)		753,086
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises	Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises	431,569		11,358		(4,404)		438,523		Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises	642,436		121		(37,438)		605,119
Asset-backed securities	Asset-backed securities	650,000		—		—		650,000		Asset-backed securities	201,366		—		—		201,366
Corporate debt securities and other debt securities	Corporate debt securities and other debt securities	18,284		744		—		19,028		Corporate debt securities and other debt securities	18,358		—		(170)		18,188
Total investment securities available for sale	Total investment securities available for sale	$	10,493,840	$	88,776	$	(101,545)	$	10,481,071	Total investment securities available for sale	$	11,013,917	$	686	$	(1,124,753)	$	9,889,850

		December 31, 2020									December 31, 2021
(in thousands)	(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury securities	U.S. Treasury securities	$	20,257	$	—	$	—	$	20,257	U.S. Treasury securities	$	120,465	$	—	$	(2,627)	$	117,838
U.S. Government agency securities	U.S. Government agency securities	79,638		2,682		—		82,320		U.S. Government agency securities	53,214		1,374		(387)		54,201
Mortgage-backed securities issued by U.S. Government agencies	Mortgage-backed securities issued by U.S. Government agencies	1,216,012		7,930		(5,925)		1,218,017		Mortgage-backed securities issued by U.S. Government agencies	790,329		768		(11,464)		779,633
Mortgage-backed securities issued by U.S. Government sponsored enterprises	Mortgage-backed securities issued by U.S. Government sponsored enterprises	4,865,858		134,188		—		5,000,046		Mortgage-backed securities issued by U.S. Government sponsored enterprises	8,063,890		50,491		(102,080)		8,012,301
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	1,245,644		15,309		(10,576)		1,250,377		Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	951,691		4,658		(16,726)		939,623
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises	Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises	354,244		16,677		—		370,921		Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises	479,420		8,644		(6,320)		481,744
Asset-backed securities										Asset-backed securities	514,188		—		—		514,188
Corporate debt securities and other debt securities	Corporate debt securities and other debt securities	20,211		457		(168)		20,500		Corporate debt securities and other debt securities	18,309		492		—		18,801
Total investment securities available for sale	Total investment securities available for sale	$	7,801,864	$	177,243	$	(16,669)	$	7,962,438	Total investment securities available for sale	$	10,991,506	$	66,427	$	(139,604)	$	10,918,329

At ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, investment securities with a carrying value of ~~$3.74~~$3.86 billion and ~~$3.84~~$4.03 billion, respectively, were pledged to secure certain deposits and other liabilities, as required by law or contractual agreements.

Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020~~2021 are presented below.


		September 30, 2021													June 30, 2022
		Less than 12 Months				12 Months or Longer				Total					Less than 12 Months				12 Months or Longer				Total
(in thousands)	(in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		(in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
U.S. Treasury securities	U.S. Treasury securities	$	47,398	$	(2,435)	$	—	$	—	$	47,398	$	(2,435)	U.S. Treasury securities	$	322,983	$	(20,632)	$	42,319	$	(7,528)	$	365,302	$	(28,160)
U.S. Government agency securities														U.S. Government agency securities	50,180		(1,973)		—		—		50,180		(1,973)
Mortgage-backed securities issued by U.S. Government agencies														Mortgage-backed securities issued by U.S. Government agencies	305,938		(36,743)		324,431		(44,782)		630,369		(81,525)
Mortgage-backed securities issued by U.S. Government sponsored enterprises														Mortgage-backed securities issued by U.S. Government sponsored enterprises	5,273,030		(605,258)		1,893,054		(296,736)		7,166,084		(901,994)
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises														Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	348,932		(26,567)		404,154		(46,926)		753,086		(73,493)
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises														Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises	418,331		(14,730)		138,644		(22,708)		556,975		(37,438)
Corporate debt securities and other debt securities														Corporate debt securities and other debt securities	18,188		(170)		—		—		18,188		(170)
Total														Total	$	6,737,582	$	(706,073)	$	2,802,602	$	(418,680)	$	9,540,184	$	(1,124,753)

															December 31, 2021
															Less than 12 Months				12 Months or Longer				Total
(in thousands)														(in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
U.S. Treasury securities														U.S. Treasury securities	$	49,648	$	(379)	$	47,590	$	(2,248)	$	97,238	$	(2,627)
U.S. Government agency securities														U.S. Government agency securities	21,760		(387)		—		—		21,760		(387)
Mortgage-backed securities issued by U.S. Government agencies	Mortgage-backed securities issued by U.S. Government agencies	627,822		(6,566)		162,587		(1,846)		790,409		(8,412)		Mortgage-backed securities issued by U.S. Government agencies	461,078		(5,858)		244,264		(5,606)		705,342		(11,464)
Mortgage-backed securities issued by U.S. Government sponsored enterprises	Mortgage-backed securities issued by U.S. Government sponsored enterprises	5,364,111		(75,243)		—		—		5,364,111		(75,243)		Mortgage-backed securities issued by U.S. Government sponsored enterprises	5,729,476		(82,671)		643,758		(19,409)		6,373,234		(102,080)
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	199,534		(1,572)		573,494		(9,479)		773,028		(11,051)		Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	187,431		(3,981)		504,238		(12,745)		691,669		(16,726)
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises	Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises	161,573		(4,404)		—		—		161,573		(4,404)		Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises	146,672		(2,951)		83,533		(3,369)		230,205		(6,320)
Total	Total	$	6,400,438	$	(90,220)	$	736,081	$	(11,325)	$	7,136,519	$	(101,545)	Total	$	6,596,065	$	(96,227)	$	1,523,383	$	(43,377)	$	8,119,448	$	(139,604)

		December 31, 2020
		Less than 12 Months				12 Months or Longer				Total
(in thousands)		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Mortgage-backed securities issued by U.S. Government agencies		$	566,896	$	(5,925)	$	—	$	—	$	566,896	$	(5,925)
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises		803,429		(10,576)		—		—		803,429		(10,576)
Corporate debt securities and other debt securities		9,337		(168)		—		—		9,337		(168)
Total		$	1,379,662	$	(16,669)	$	—	$	—	$	1,379,662	$	(16,669)

As of ~~September~~June 30, ~~2021,~~2022, Synovus had ~~135~~304 investment securities in a loss position for less than twelve months and 1579 investment securities in a loss position for twelve months or longer. Synovus does not intend to sell investment securities in an unrealized loss position prior to the recovery of the unrealized loss, which may not be until maturity, and has the ability and intent to hold those securities for that period of time. Additionally, Synovus is not currently aware of any circumstances which will require it to sell any of the securities that are in an unrealized loss position prior to the respective securities' recovery of all such unrealized losses. As such, no write-downs to the amortized cost basis of the portfolio were recorded at ~~September~~June 30, ~~2021.~~2022.

At ~~September~~June 30, ~~2021, 0~~2022, no ACL was established for investment securities. Substantially all of the unrealized losses on the securities portfolio were the result of changes in market interest rates compared to the date the securities were acquired rather than the credit quality of the issuers or underlying loans. U.S. Treasury and agency securities and agency mortgage-backed securities are issued, guaranteed or otherwise supported by the United States government, an agency of the United States government, or a government sponsored enterprise.

The amortized cost and fair value by contractual maturity of investment securities available for sale at ~~September~~June 30, ~~2021~~2022 are shown below. The expected life of MBSs or CMOs may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. For purposes of the maturity table, MBSs and CMOs, which are not due at a single maturity date, have been classified based on the final contractual maturity date.


		Distribution of Maturities at September 30, 2021											Distribution of Maturities at June 30, 2022
(in thousands)	(in thousands)	Within One Year		1 to 5 Years		5 to 10 Years		More Than 10 Years		Total		(in thousands)	Within One Year		1 to 5 Years		5 to 10 Years		More Than 10 Years		Total
Amortized Cost	Amortized Cost											Amortized Cost
U.S. Treasury securities	U.S. Treasury securities	$	20,350	$	—	$	99,862	$	—	$	120,212	U.S. Treasury securities	$	21,282	$	343,616	$	49,846	$	—	$	414,744
U.S. Government agency securities	U.S. Government agency securities	756		321		52,136		—		53,213		U.S. Government agency securities	456		22,420		29,990		—		52,866
Mortgage-backed securities issued by U.S. Government agencies	Mortgage-backed securities issued by U.S. Government agencies	—		952		140		878,096		879,188		Mortgage-backed securities issued by U.S. Government agencies	—		727		5		712,758		713,490
Mortgage-backed securities issued by U.S. Government sponsored enterprises	Mortgage-backed securities issued by U.S. Government sponsored enterprises	59		—		71,559		7,208,953		7,280,571		Mortgage-backed securities issued by U.S. Government sponsored enterprises	—		—		127,499		8,016,579		8,144,078
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	—		—		165		1,060,638		1,060,803		Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	—		114		—		826,465		826,579
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises	Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises	—		109,227		231,245		91,097		431,569		Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises	—		338,951		234,679		68,806		642,436
Asset-backed securities	Asset-backed securities	650,000		—		—		—		650,000		Asset-backed securities	201,366		—		—		—		201,366
Corporate debt securities and other debt securities	Corporate debt securities and other debt securities	—		9,502		8,782		—		18,284		Corporate debt securities and other debt securities	9,501		—		8,857		—		18,358
Total amortized cost	Total amortized cost	$	671,165	$	120,002	$	463,889	$	9,238,784	$	10,493,840	Total amortized cost	$	232,605	$	705,828	$	450,876	$	9,624,608	$	11,013,917

Fair Value	Fair Value											Fair Value
U.S. Treasury securities	U.S. Treasury securities	$	20,350	$	—	$	97,543	$	—	$	117,893	U.S. Treasury securities	$	21,282	$	322,983	$	42,319	$	—	$	386,584
U.S. Government agency securities	U.S. Government agency securities	769		326		53,894		—		54,989		U.S. Government agency securities	457		20,581		29,857		—		50,895
Mortgage-backed securities issued by U.S. Government agencies	Mortgage-backed securities issued by U.S. Government agencies	—		989		146		871,082		872,217		Mortgage-backed securities issued by U.S. Government agencies	—		727		5		631,239		631,971
Mortgage-backed securities issued by U.S. Government sponsored enterprises	Mortgage-backed securities issued by U.S. Government sponsored enterprises	60		—		74,540		7,196,333		7,270,933		Mortgage-backed securities issued by U.S. Government sponsored enterprises	—		—		124,738		7,117,903		7,242,641
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	—		—		172		1,057,316		1,057,488		Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	—		114		—		752,972		753,086
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises	Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises	—		112,628		230,898		94,997		438,523		Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises	—		328,630		209,726		66,763		605,119
Asset-backed securities	Asset-backed securities	650,000		—		—		—		650,000		Asset-backed securities	201,366		—		—		—		201,366
Corporate debt securities and other debt securities	Corporate debt securities and other debt securities	—		9,815		9,213		—		19,028		Corporate debt securities and other debt securities	9,446		—		8,742		—		18,188
Total fair value	Total fair value	$	671,179	$	123,758	$	466,406	$	9,219,728	$	10,481,071	Total fair value	$	232,551	$	673,035	$	415,387	$	8,568,877	$	9,889,850

Gross gains and gross losses on sales of securities available for sale for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021 are presented below. The specific identification method is used to reclassify gains and losses out of other comprehensive income (loss) at the time of sale.


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	(in thousands)	2021		2020		2021		2020		(in thousands)	2022		2021		2022		2021
Gross realized gains on sales	Gross realized gains on sales	$	962	$	—	$	962	$	83,840	Gross realized gains on sales	$	—	$	—	$	—	$	—
Gross realized losses on sales	Gross realized losses on sales	—		(1,550)		(1,990)		(7,246)		Gross realized losses on sales	—		—		—		(1,990)
Investment securities gains (losses), net	Investment securities gains (losses), net	$	962	$	(1,550)	$	(1,028)	$	76,594	Investment securities gains (losses), net	$	—	$	—	$	—	$	(1,990)

Note 3 - Loans and Allowance for Loan Losses

Aging and Non-Accrual Analysis

The following tables provide a summary of current, accruing past due, and non-accrual loans by portfolio class as of ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020.~~2021.


		September 30, 2021															June 30, 2022
(in thousands)	(in thousands)	Current		Accruing 30-89 Days Past Due		Accruing 90 Days or Greater Past Due		Total Accruing Past Due		Non-accrual with an ALL		Non-accrual without an ALL		Total		(in thousands)	Current		Accruing 30-89 Days Past Due		Accruing 90 Days or Greater Past Due		Total Accruing Past Due		Non-accrual with an ALL		Non-accrual without an ALL		Total
Commercial, financial and agricultural	Commercial, financial and agricultural	$	11,671,000	$	21,115	$	1,573	$	22,688	$	45,198	$	32,151	$	11,771,037	Commercial, financial and agricultural	$	12,954,600	$	14,363	$	525	$	14,888	$	12,834	$	35,767	$	13,018,089
Owner-occupied	Owner-occupied	7,147,006		2,923		688		3,611		6,792		6,342		7,163,751		Owner-occupied	7,744,300		4,538		—		4,538		6,955		4,443		7,760,236
Total commercial and industrial	Total commercial and industrial	18,818,006		24,038		2,261		26,299		51,990		38,493		18,934,788		Total commercial and industrial	20,698,900		18,901		525		19,426		19,789		40,210		20,778,325
Investment properties	Investment properties	9,440,485		945		291		1,236		4,345		2,397		9,448,463		Investment properties	10,400,407		271		—		271		5,025		2,345		10,408,048
1-4 family properties	1-4 family properties	608,807		927		1,254		2,181		2,419		467		613,874		1-4 family properties	636,701		2,036		—		2,036		1,821		1,297		641,855
Land and development	Land and development	475,911		62		14		76		1,936		—		477,923		Land and development	451,590		—		—		—		1,924		—		453,514
Total commercial real estate	Total commercial real estate	10,525,203		1,934		1,559		3,493		8,700		2,864		10,540,260		Total commercial real estate	11,488,698		2,307		—		2,307		8,770		3,642		11,503,417
Consumer mortgages	Consumer mortgages	5,065,749		5,162		47		5,209		37,040		501		5,108,499		Consumer mortgages	5,092,428		9,238		—		9,238		22,857		—		5,124,523
Home equity lines		1,293,685		5,549		332		5,881		8,688		—		1,308,254
Home equity																Home equity	1,567,527		3,591		—		3,591		7,588		512		1,579,218
Credit cards	Credit cards	290,464		1,280		1,282		2,562		—		—		293,026		Credit cards	191,641		1,413		1,236		2,649		—		—		194,290
Other consumer loans	Other consumer loans	2,131,641		16,894		479		17,373		7,189		—		2,156,203		Other consumer loans	2,000,402		18,459		490		18,949		5,656		—		2,025,007
Total consumer	Total consumer	8,781,539		28,885		2,140		31,025		52,917		501		8,865,982		Total consumer	8,851,998		32,701		1,726		34,427		36,101		512		8,923,038
Loans, net of deferred fees and costs	Loans, net of deferred fees and costs	$	38,124,748	$	54,857	$	5,960	$	60,817	$	113,607	$	41,858	$	38,341,030	Loans, net of deferred fees and costs	$	41,039,596	$	53,909	$	2,251	$	56,160	$	64,660	$	44,364	$	41,204,780


		December 31, 2020															December 31, 2021
(in thousands)	(in thousands)	Current		Accruing 30-89 Days Past Due		Accruing 90 Days or Greater Past Due		Total Accruing Past Due		Non-accrual with an ALL		Non-accrual without an ALL		Total		(in thousands)	Current		Accruing 30-89 Days Past Due		Accruing 90 Days or Greater Past Due		Total Accruing Past Due		Non-accrual with an ALL		Non-accrual without an ALL		Total
Commercial, financial and agricultural	Commercial, financial and agricultural	$	12,321,514	$	10,256	$	996	$	11,252	$	55,527	$	21,859	$	12,410,152	Commercial, financial and agricultural	$	12,068,740	$	13,378	$	3,953	$	17,331	$	37,918	$	23,869	$	12,147,858
Owner-occupied	Owner-occupied	7,087,992		1,913		92		2,005		20,019		—		7,110,016		Owner-occupied	7,460,184		3,627		59		3,686		7,146		4,050		7,475,066
Total commercial and industrial	Total commercial and industrial	19,409,506		12,169		1,088		13,257		75,546		21,859		19,520,168		Total commercial and industrial	19,528,924		17,005		4,012		21,017		45,064		27,919		19,622,924
Investment properties	Investment properties	9,075,843		2,751		154		2,905		24,631		—		9,103,379		Investment properties	9,894,924		1,285		717		2,002		3,273		2,577		9,902,776
1-4 family properties	1-4 family properties	621,492		3,548		36		3,584		2,383		1,236		628,695		1-4 family properties	639,631		1,182		93		1,275		4,535		28		645,469
Land and development	Land and development	591,048		422		—		422		1,899		264		593,633		Land and development	463,949		845		154		999		1,918		—		466,866
Total commercial real estate	Total commercial real estate	10,288,383		6,721		190		6,911		28,913		1,500		10,325,707		Total commercial real estate	10,998,504		3,312		964		4,276		9,726		2,605		11,015,111
Consumer mortgages	Consumer mortgages	5,495,415		8,851		485		9,336		8,740		—		5,513,491		Consumer mortgages	5,033,537		6,257		126		6,383		29,078		—		5,068,998
Home equity lines		1,521,575		4,006		—		4,006		12,145		—		1,537,726
Home equity																Home equity	1,349,027		2,619		—		2,619		9,773		—		1,361,419
Credit cards	Credit cards	276,778		2,363		1,877		4,240		—		—		281,018		Credit cards	201,929		1,233		1,010		2,243		—		—		204,172
Other consumer loans	Other consumer loans	1,062,899		9,122		477		9,599		2,376		—		1,074,874		Other consumer loans	2,011,430		20,369		658		21,027		6,877		—		2,039,334
Total consumer	Total consumer	8,356,667		24,342		2,839		27,181		23,261		—		8,407,109		Total consumer	8,595,923		30,478		1,794		32,272		45,728		—		8,673,923
Loans, net of deferred fees and costs	Loans, net of deferred fees and costs	$	38,054,556	$	43,232	$	4,117	$	47,349	$	127,720	$	23,359	$	38,252,984	Loans, net of deferred fees and costs	$	39,123,351	$	50,795	$	6,770	$	57,565	$	100,518	$	30,524	$	39,311,958

Interest income on non-accrual loans outstanding that would have been recorded if the loans had been current and performing in accordance with their original terms was ~~$4.1~~$2.0 million and ~~$4.3~~$2.7 million for the three months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively and ~~$10.1~~$5.4 million and ~~$9.2~~$6.2 million for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively. Of the interest income recognized during the three months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, cash-basis interest income was ~~$454~~$410 thousand and ~~$1.3 million,~~$575 thousand, respectively. Cash-basis interest income was ~~$1.6 million~~$964 thousand and ~~$2.7~~$1.2 million for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021 respectively.

Pledged Loans

Loans with carrying values of ~~$14.29~~$15.15 billion and ~~$15.05~~$14.19 billion, respectively, were pledged as collateral for borrowings and capacity at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively, to the FHLB and Federal Reserve Bank.

Portfolio Segment Risk Factors

The risk characteristics and collateral information of each portfolio segment are as follows:

Commercial and Industrial Loans - The C&I loan portfolio is primarily comprised of general middle market and commercial banking clients across a diverse set of industries. In accordance with Synovus' lending policy, each loan undergoes a detailed underwriting process which incorporates uniform underwriting standards and oversight in proportion to the size and complexity of the lending relationship. These loans are secured by collateral such as business equipment, inventory, and real estate. ~~Whether for real estate or non-real estate purpose, credit~~Credit decisions on loans in the C&I portfolio are based on cash flow from the operations of the business as the primary source of repayment of the debt, with underlying real estate or other collateral being the secondary source of repayment. PPP loans, which are categorized as C&I loans, were ~~$782.2~~$86.7 million at ~~September~~June 30, ~~2021~~2022 and are guaranteed by the SBA.

Commercial Real Estate Loans - CRE loans primarily consist of income-producing investment properties loans. Additionally, CRE loans include 1-4 family properties loans as well as land and development loans. Investment properties loans consist of construction and mortgage loans for income-producing properties and are primarily made to finance multi-family properties, hotels, office buildings, shopping centers, warehouses and other commercial development properties. 1-4 family properties loans include construction loans to homebuilders and commercial mortgage loans related to 1-4 family rental properties and are almost always secured by the underlying property being financed by such loans. These properties are primarily located in the markets served by Synovus. Land and development loans include commercial and residential development as well as land acquisition loans and are secured by land held for future development, typically in excess of one year. Properties securing these loans are substantially within markets served by Synovus, and loan terms generally include personal guarantees from the principals. Loans in this portfolio are underwritten based on the LTV of the collateral and the capacity of the guarantor(s).

Consumer Loans - The consumer loan portfolio consists of a wide variety of loan products offered through Synovus' banking network including first and second residential mortgages, ~~HELOCs,~~home equity, and consumer credit card loans, as well as home improvement loans, student, personal, and auto loans from third-party lending ("other consumer loans"). Together, consumer mortgages and ~~HELOCs~~home equity comprise the majority of Synovus' consumer loans and are secured by first and second liens on residential real estate primarily located in the markets served by Synovus. The primary source of repayment for all consumer loans is generally the personal income of the borrower(s).

Credit Quality Indicators

The credit quality of the loan portfolio is reviewed and updated no less frequently than annually using the standard asset classification system utilized by the federal banking agencies. These classifications are divided into three groups: Not Criticized (Pass), Special Mention, and Classified or Adverse rating (Substandard, Doubtful, and Loss) and are defined as follows:

Pass- loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell in a timely manner, of any underlying collateral.

Special Mention - loans which have potential weaknesses that deserve management's close attention. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant an adverse classification.

Substandard - loans which are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans with this classification are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful - loans which have all the weaknesses inherent in loans categorized as Substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently known facts, conditions, and values.

Loss - loans which are considered by management to be uncollectible and of such little value that their continuance on the institution's books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. Synovus fully reserves for any loans rated as Loss.

In the following tables, consumer loans are generally assigned a risk grade similar to the classifications described above; however, upon reaching 90 days and 120 days past due, they are generally downgraded to Substandard and Loss, respectively, in accordance with the FFIEC Retail Credit Classification Policy. Additionally, in accordance with Interagency Supervisory Guidance, the risk grade classifications of consumer loans (consumer mortgages and ~~HELOCs)~~home equity) secured by junior liens on 1-4 family residential properties also consider available information on the payment status of any associated senior liens with other financial institutions.

The following tables summarize each loan portfolio class by risk grade and origination year as of ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020~~2021 as required under CECL.


		September 30, 2021																			June 30, 2022
		Term Loans Amortized Cost Basis by Origination Year												Revolving Loans							Term Loans Amortized Cost Basis by Origination Year												Revolving Loans
(in thousands)	(in thousands)	2021		2020		2019		2018		2017		Prior		Amortized Cost Basis		Converted to Term Loans		Total		(in thousands)	2022		2021		2020		2019		2018		Prior		Amortized Cost Basis		Converted to Term Loans		Total
Commercial, financial and agricultural	Commercial, financial and agricultural																			Commercial, financial and agricultural
Pass	Pass	$	2,138,319	$	1,487,509	$	1,029,770	$	688,243	$	495,111	$	1,022,111	$	4,456,088	$	44,065	$	11,361,216	Pass	$	539,814	$	2,126,772	$	1,183,170	$	811,870	$	569,801	$	1,166,642	$	6,202,131	$	30,553	$	12,630,753
Special Mention	Special Mention	3,019		22,126		14,454		7,994		3,416		2,118		85,126		422		138,675		Special Mention	3,136		4,280		9,337		9,435		17,596		3,333		86,555		—		133,672
Substandard(1)	Substandard(1)	12,311		58,283		43,888		10,648		21,137		36,784		71,188		984		255,223		Substandard(1)	6,888		11,081		52,047		45,437		18,756		28,546		86,152		1,082		249,989
Doubtful(2)	Doubtful(2)	447		—		2,449		13,015		—		—		12		—		15,923		Doubtful(2)	—		—		—		—		3,520		—		—		—		3,520
Loss(3)																				Loss(3)	—		—		—		—		—		—		155		—		155
Total commercial, financial and agricultural	Total commercial, financial and agricultural	2,154,096		1,567,918		1,090,561		719,900		519,664		1,061,013		4,612,414		45,471		11,771,037		Total commercial, financial and agricultural	549,838		2,142,133		1,244,554		866,742		609,673		1,198,521		6,374,993		31,635		13,018,089
Owner-occupied	Owner-occupied																			Owner-occupied
Pass	Pass	1,124,258		1,302,576		1,169,910		898,921		793,353		1,265,310		419,099		—		6,973,427		Pass	834,063		1,730,966		1,178,269		1,007,485		720,509		1,388,397		641,261		—		7,500,950
Special Mention	Special Mention	647		1,646		10,783		12,780		6,693		23,689		—		—		56,238		Special Mention	137		4,545		86,210		8,841		45,656		28,168		—		—		173,557
Substandard(1)	Substandard(1)	1,689		2,777		19,333		51,223		26,089		26,633		—		—		127,744		Substandard(1)	2,400		12,555		2,969		5,738		39,048		22,766		—		—		85,476
Doubtful(2)		—		—		—		6,342		—		—		—		—		6,342
Loss(3)																				Loss(3)	—		253		—		—		—		—		—		—		253
Total owner-occupied	Total owner-occupied	1,126,594		1,306,999		1,200,026		969,266		826,135		1,315,632		419,099		—		7,163,751		Total owner-occupied	836,600		1,748,319		1,267,448		1,022,064		805,213		1,439,331		641,261		—		7,760,236
Total commercial and industrial	Total commercial and industrial	3,280,690		2,874,917		2,290,587		1,689,166		1,345,799		2,376,645		5,031,513		45,471		18,934,788		Total commercial and industrial	1,386,438		3,890,452		2,512,002		1,888,806		1,414,886		2,637,852		7,016,254		31,635		20,778,325
Investment properties	Investment properties																			Investment properties
Pass	Pass	1,591,349		1,536,934		2,046,139		1,217,911		782,607		1,466,183		289,154		—		8,930,277		Pass	1,352,056		2,953,629		1,554,185		1,444,006		901,677		1,749,178		314,751		—		10,269,482
Special Mention	Special Mention	6,127		228		59,292		124,165		77,438		95,525		54,635		—		417,410		Special Mention	—		6,963		—		15,295		11,559		4,409		7,997		—		46,223
Substandard(1)	Substandard(1)	1,453		330		8,780		48,755		13,516		27,851		91		—		100,776		Substandard(1)	358		486		631		3,695		52,785		13,118		21,270		—		92,343
Total investment properties	Total investment properties	1,598,929		1,537,492		2,114,211		1,390,831		873,561		1,589,559		343,880		—		9,448,463		Total investment properties	1,352,414		2,961,078		1,554,816		1,462,996		966,021		1,766,705		344,018		—		10,408,048
1-4 family properties	1-4 family properties																			1-4 family properties
Pass	Pass	226,200		109,045		56,027		50,133		59,219		68,597		32,504		—		601,725		Pass	174,897		203,245		56,607		38,918		33,778		75,587		46,689		—		629,721
Special Mention	Special Mention	195		210		—		—		—		243		—		—		648		Special Mention	2,688		1,250		970		634		—		202		—		—		5,744
Substandard(1)	Substandard(1)	1,600		—		832		4,996		917		2,643		513		—		11,501		Substandard(1)	699		1,785		5		435		1,521		1,900		45		—		6,390
Total 1-4 family properties	Total 1-4 family properties	227,995		109,255		56,859		55,129		60,136		71,483		33,017		—		613,874		Total 1-4 family properties	178,284		206,280		57,582		39,987		35,299		77,689		46,734		—		641,855


		September 30, 2021																			June 30, 2022
		Term Loans Amortized Cost Basis by Origination Year												Revolving Loans							Term Loans Amortized Cost Basis by Origination Year												Revolving Loans
(in thousands)	(in thousands)	2021		2020		2019		2018		2017		Prior		Amortized Cost Basis		Converted to Term Loans		Total		(in thousands)	2022		2021		2020		2019		2018		Prior		Amortized Cost Basis		Converted to Term Loans		Total
Land and development	Land and development																			Land and development
Pass	Pass	80,340		50,844		105,188		66,822		61,539		64,609		36,134		—		465,476		Pass	66,081		133,592		30,360		55,259		21,038		84,205		22,182		—		412,717
Special Mention	Special Mention	—		815		1,926		839		17		343		—		—		3,940		Special Mention	29		170		775		—		31,136		290		—		—		32,400
Substandard(1)	Substandard(1)	—		963		60		3,196		825		3,463		—		—		8,507		Substandard(1)	813		2,884		225		643		477		3,355		—		—		8,397
Total land and development	Total land and development	80,340		52,622		107,174		70,857		62,381		68,415		36,134		—		477,923		Total land and development	66,923		136,646		31,360		55,902		52,651		87,850		22,182		—		453,514
Total commercial real estate	Total commercial real estate	1,907,264		1,699,369		2,278,244		1,516,817		996,078		1,729,457		413,031		—		10,540,260		Total commercial real estate	1,597,621		3,304,004		1,643,758		1,558,885		1,053,971		1,932,244		412,934		—		11,503,417
Consumer mortgages	Consumer mortgages																			Consumer mortgages
Pass	Pass	938,232		1,660,740		646,572		257,873		445,631		1,104,999		655		—		5,054,702		Pass	498,240		1,249,155		1,432,760		496,716		187,795		1,205,352		492		—		5,070,510
Substandard(1)	Substandard(1)	527		3,663		4,796		12,501		5,747		26,342		—		—		53,576		Substandard(1)	45		2,667		4,926		7,134		11,624		26,856		—		—		53,252
Loss(3)	Loss(3)	—		—		—		—		—		221		—		—		221		Loss(3)	—		—		—		4		—		757		—		—		761
Total consumer mortgages	Total consumer mortgages	938,759		1,664,403		651,368		270,374		451,378		1,131,562		655		—		5,108,499		Total consumer mortgages	498,285		1,251,822		1,437,686		503,854		199,419		1,232,965		492		—		5,124,523
Home equity lines
Home equity																				Home equity
Pass	Pass	—		—		—		—		—		—		1,222,184		70,330		1,292,514		Pass	—		—		—		—		—		—		1,204,042		363,356		1,567,398
Substandard(1)	Substandard(1)	—		—		—		—		—		—		8,843		5,749		14,592		Substandard(1)	—		—		—		—		—		—		6,967		4,289		11,256
Doubtful(2)		—		—		—		—		—		—		—		18		18
Loss(3)	Loss(3)	—		—		—		—		—		—		989		141		1,130		Loss(3)	—		—		—		—		—		—		426		138		564
Total home equity lines		—		—		—		—		—		—		1,232,016		76,238		1,308,254
Total home equity																				Total home equity	—		—		—		—		—		—		1,211,435		367,783		1,579,218
Credit cards	Credit cards																			Credit cards
Pass	Pass	—		—		—		—		—		—		291,744		—		291,744		Pass	—		—		—		—		—		—		193,102		—		193,102
Substandard(1)	Substandard(1)	—		—		—		—		—		—		469		—		469		Substandard(1)	—		—		—		—		—		—		430		—		430
Loss(4)	Loss(4)	—		—		—		—		—		—		813		—		813		Loss(4)	—		—		—		—		—		—		758		—		758
Total credit cards	Total credit cards	—		—		—		—		—		—		293,026		—		293,026		Total credit cards	—		—		—		—		—		—		194,290		—		194,290
Other consumer loans	Other consumer loans																			Other consumer loans
Pass	Pass	599,241		801,239		153,525		58,391		83,428		108,650		343,651		—		2,148,125		Pass	155,843		667,787		557,705		86,030		43,321		182,373		323,060		—		2,016,119
Substandard(1)	Substandard(1)	368		825		1,936		1,438		2,412		901		176		—		8,056		Substandard(1)	1,942		1,515		1,724		1,326		1,110		1,094		168		—		8,879
Loss(4)	Loss(4)	—		—		—		—		—		22		—		—		22		Loss(4)	—		—		—		—		—		9		—		—		9
Total other consumer loans	Total other consumer loans	599,609		802,064		155,461		59,829		85,840		109,573		343,827		—		2,156,203		Total other consumer loans	157,785		669,302		559,429		87,356		44,431		183,476		323,228		—		2,025,007
Total consumer	Total consumer	1,538,368		2,466,467		806,829		330,203		537,218		1,241,135		1,869,524		76,238		8,865,982		Total consumer	656,070		1,921,124		1,997,115		591,210		243,850		1,416,441		1,729,445		367,783		8,923,038
Loans, net of deferred fees and costs	Loans, net of deferred fees and costs	$	6,726,322	$	7,040,753	$	5,375,660	$	3,536,186	$	2,879,095	$	5,347,237	$	7,314,068	$	121,709	$	38,341,030	Loans, net of deferred fees and costs	$	3,640,129	$	9,115,580	$	6,152,875	$	4,038,901	$	2,712,707	$	5,986,537	$	9,158,633	$	399,418	$	41,204,780

(1) The majority of loans within Substandard risk grade are accruing loans at ~~September~~June 30, ~~2021.~~2022.

(2) Loans within Doubtful risk grade are on non-accrual status and generally have an ALL equal to 50% of the loan amount.

(3) Loans within Loss risk grade are on non-accrual status and have an ALL equal to the full loan amount.

(4) Represent amounts that were 120 days past due. These credits are downgraded to the Loss category with an ALL equal to the full loan amount and are generally charged off upon reaching 181 days past due in accordance with the FFIEC Retail Credit Classification Policy.


		December 31, 2020																			December 31, 2021
		Term Loans Amortized Cost Basis by Origination Year												Revolving Loans							Term Loans Amortized Cost Basis by Origination Year												Revolving Loans
(in thousands)	(in thousands)	2020		2019		2018		2017		2016		Prior		Amortized Cost Basis		Converted to Term Loans		Total		(in thousands)	2021		2020		2019		2018		2017		Prior		Amortized Cost Basis		Converted to Term Loans		Total
Commercial, financial and agricultural	Commercial, financial and agricultural																			Commercial, financial and agricultural
Pass	Pass	$	3,819,048	$	1,333,460	$	847,283	$	582,612	$	551,413	$	633,871	$	4,102,751	$	49,762	$	11,920,200	Pass	$	2,396,717	$	1,332,549	$	922,396	$	607,918	$	433,045	$	903,995	$	5,151,981	$	42,809	$	11,791,410
Special Mention	Special Mention	63,307		40,618		12,723		22,070		1,665		5,545		60,741		489		207,158		Special Mention	2,731		15,166		17,571		10,433		2,242		2,489		71,996		—		122,628
Substandard(1)	Substandard(1)	28,698		36,618		24,867		36,072		12,808		35,172		84,498		514		259,247		Substandard(1)	16,105		50,979		40,125		10,383		16,473		37,565		51,442		33		223,105
Doubtful(2)	Doubtful(2)	—		3,721		19,778		—		—		—		48		—		23,547		Doubtful(2)	469		—		1,601		8,512		—		—		48		—		10,630
Loss(3)																				Loss(3)	—		—		—		—		—		—		85		—		85
Total commercial, financial and agricultural	Total commercial, financial and agricultural	3,911,053		1,414,417		904,651		640,754		565,886		674,588		4,248,038		50,765		12,410,152		Total commercial, financial and agricultural	2,416,022		1,398,694		981,693		637,246		451,760		944,049		5,275,552		42,842		12,147,858
Owner-occupied	Owner-occupied																			Owner-occupied
Pass	Pass	1,321,680		1,275,435		1,131,183		982,056		555,932		1,297,070		349,566		—		6,912,922		Pass	1,776,086		1,276,797		1,117,825		858,721		708,942		1,116,766		437,724		—		7,292,861
Special Mention	Special Mention	6,170		9,995		10,682		14,138		1,582		13,768		—		—		56,335		Special Mention	702		19,950		4,724		10,202		18,109		36,481		—		—		90,168
Substandard(1)	Substandard(1)	2,570		22,793		42,615		26,033		7,316		29,794		—		—		131,121		Substandard(1)	7,312		1,294		8,386		43,276		6,169		25,329		—		—		91,766
Doubtful(2)		—		—		9,638		—		—		—		—		—		9,638
Loss(3)																				Loss(3)	271		—		—		—		—		—		—		—		271
Total owner-occupied	Total owner-occupied	1,330,420		1,308,223		1,194,118		1,022,227		564,830		1,340,632		349,566		—		7,110,016		Total owner-occupied	1,784,371		1,298,041		1,130,935		912,199		733,220		1,178,576		437,724		—		7,475,066
Total commercial and industrial	Total commercial and industrial	5,241,473		2,722,640		2,098,769		1,662,981		1,130,716		2,015,220		4,597,604		50,765		19,520,168		Total commercial and industrial	4,200,393		2,696,735		2,112,628		1,549,445		1,184,980		2,122,625		5,713,276		42,842		19,622,924
Investment properties	Investment properties																			Investment properties
Pass	Pass	1,055,440		2,126,667		1,999,345		1,091,880		483,780		1,301,088		229,044		—		8,287,244		Pass	2,823,978		1,463,503		1,905,534		1,019,765		738,036		1,317,634		278,697		—		9,547,147
Special Mention	Special Mention	1,482		66,160		176,794		136,004		138,362		129,401		55,440		—		703,643		Special Mention	6,163		—		32,290		63,900		59,194		44,532		33,659		—		239,738
Substandard(1)	Substandard(1)	1,007		4,770		24,476		19,820		21,875		40,509		35		—		112,492		Substandard(1)	1,465		326		8,550		57,127		3,564		23,505		21,354		—		115,891
Total investment properties	Total investment properties	1,057,929		2,197,597		2,200,615		1,247,704		644,017		1,470,998		284,519		—		9,103,379		Total investment properties	2,831,606		1,463,829		1,946,374		1,140,792		800,794		1,385,671		333,710		—		9,902,776
1-4 family properties	1-4 family properties																			1-4 family properties
Pass	Pass	197,320		95,145		70,267		88,454		38,729		97,374		27,657		—		614,946		Pass	295,082		82,976		51,939		43,025		49,057		57,025		55,588		—		634,692
Special Mention	Special Mention	402		—		508		109		786		118		—		—		1,923		Special Mention	192		207		641		—		—		239		—		—		1,279
Substandard(1)	Substandard(1)	1,527		653		4,312		1,141		554		2,299		1,340		—		11,826		Substandard(1)	1,999		—		566		4,222		489		2,177		45		—		9,498
Total 1-4 family properties	Total 1-4 family properties	199,249		95,798		75,087		89,704		40,069		99,791		28,997		—		628,695		Total 1-4 family properties	297,273		83,183		53,146		47,247		49,546		59,441		55,633		—		645,469
Land and development	Land and development																			Land and development
Pass	Pass	84,985		173,302		83,734		92,911		12,249		76,380		53,250		—		576,811		Pass	141,614		42,201		77,868		34,058		37,167		44,989		44,730		—		422,627
Special Mention	Special Mention	857		1,995		2,866		282		—		1,332		636		—		7,968		Special Mention	—		800		1,900		31,458		—		1,179		—		—		35,337
Substandard(1)	Substandard(1)	1,229		425		4,664		915		136		1,485		—		—		8,854		Substandard(1)	824		1,149		46		3,021		807		3,055		—		—		8,902
Total land and development	Total land and development	87,071		175,722		91,264		94,108		12,385		79,197		53,886		—		593,633		Total land and development	142,438		44,150		79,814		68,537		37,974		49,223		44,730		—		466,866
Total commercial real estate	Total commercial real estate	1,344,249		2,469,117		2,366,966		1,431,516		696,471		1,649,986		367,402		—		10,325,707		Total commercial real estate	3,271,317		1,591,162		2,079,334		1,256,576		888,314		1,494,335		434,073		—		11,015,111


		December 31, 2020																			December 31, 2021
		Term Loans Amortized Cost Basis by Origination Year												Revolving Loans							Term Loans Amortized Cost Basis by Origination Year												Revolving Loans
(in thousands)	(in thousands)	2020		2019		2018		2017		2016		Prior		Amortized Cost Basis		Converted to Term Loans		Total		(in thousands)	2021		2020		2019		2018		2017		Prior		Amortized Cost Basis		Converted to Term Loans		Total
Consumer mortgages	Consumer mortgages																			Consumer mortgages
Pass	Pass	1,871,512		874,769		425,711		678,255		685,810		965,382		1,040		—		5,502,479		Pass	1,274,999		1,556,733		572,467		216,277		392,492		1,001,771		255		—		5,014,994
Substandard(1)	Substandard(1)	33		961		748		889		866		7,224		—		—		10,721		Substandard(1)	1,031		3,680		5,943		12,387		5,717		25,025		—		—		53,783
Loss(3)	Loss(3)	—		—		—		—		—		291		—		—		291		Loss(3)	—		—		5		—		—		216		—		—		221
Total consumer mortgages	Total consumer mortgages	1,871,545		875,730		426,459		679,144		686,676		972,897		1,040		—		5,513,491		Total consumer mortgages	1,276,030		1,560,413		578,415		228,664		398,209		1,027,012		255		—		5,068,998
Home equity lines
Home equity																				Home equity
Pass	Pass	—		—		—		—		—		—		1,429,755		90,832		1,520,587		Pass	—		—		—		—		—		—		1,199,556		146,635		1,346,191
Substandard(1)	Substandard(1)	—		—		—		—		—		—		9,698		5,996		15,694		Substandard(1)	—		—		—		—		—		—		9,058		5,372		14,430
Doubtful(2)		—		—		—		—		—		—		—		19		19
Loss(3)	Loss(3)	—		—		—		—		—		—		1,283		143		1,426		Loss(3)	—		—		—		—		—		—		658		140		798
Total home equity lines		—		—		—		—		—		—		1,440,736		96,990		1,537,726
Total home equity																				Total home equity	—		—		—		—		—		—		1,209,272		152,147		1,361,419
Credit cards	Credit cards																			Credit cards
Pass	Pass	—		—		—		—		—		—		279,142		—		279,142		Pass	—		—		—		—		—		—		203,161		—		203,161
Substandard(1)	Substandard(1)	—		—		—		—		—		—		595		—		595		Substandard(1)	—		—		—		—		—		—		348		—		348
Loss(4)	Loss(4)	—		—		—		—		—		—		1,281		—		1,281		Loss(4)	—		—		—		—		—		—		663		—		663
Total credit cards	Total credit cards	—		—		—		—		—		—		281,018		—		281,018		Total credit cards	—		—		—		—		—		—		204,172		—		204,172
Other consumer loans	Other consumer loans																			Other consumer loans
Pass	Pass	252,160		190,820		89,187		100,459		80,365		61,040		297,637		—		1,071,668		Pass	654,419		708,937		127,131		49,993		86,175		97,765		306,500		—		2,030,920
Substandard(1)	Substandard(1)	19		762		262		1,195		121		585		227		—		3,171		Substandard(1)	668		1,550		2,064		1,308		1,892		750		162		—		8,394
Loss(4)	Loss(4)	—		—		—		—		—		35		—		—		35		Loss(4)	—		—		—		—		—		20		—		—		20
Total other consumer loans	Total other consumer loans	252,179		191,582		89,449		101,654		80,486		61,660		297,864		—		1,074,874		Total other consumer loans	655,087		710,487		129,195		51,301		88,067		98,535		306,662		—		2,039,334
Total consumer	Total consumer	2,123,724		1,067,312		515,908		780,798		767,162		1,034,557		2,020,658		96,990		8,407,109		Total consumer	1,931,117		2,270,900		707,610		279,965		486,276		1,125,547		1,720,361		152,147		8,673,923
Loans, net of deferred fees and costs	Loans, net of deferred fees and costs	$	8,709,446	$	6,259,069	$	4,981,643	$	3,875,295	$	2,594,349	$	4,699,763	$	6,985,664	$	147,755	$	38,252,984	Loans, net of deferred fees and costs	$	9,402,827	$	6,558,797	$	4,899,572	$	3,085,986	$	2,559,570	$	4,742,507	$	7,867,710	$	194,989	$	39,311,958

(1) The majority of loans within Substandard risk grade are accruing loans at December 31, ~~2020.~~2021.

(2) Loans within Doubtful risk grade are on non-accrual status and generally have an ALL equal to 50% of the loan amount.

(3) Loans within Loss risk grade are on non-accrual status and have an ALL equal to the full loan amount.

Collateral-Dependent Loans

We classify a loan as collateral-dependent when our borrower is experiencing financial difficulty, and we expect repayment to be provided substantially through the operation or sale of collateral. Our commercial loans have collateral that is comprised of real estate and business assets. Our consumer loans have collateral that is substantially comprised of residential real estate.

There were no significant changes in the extent to which collateral secures our collateral-dependent loans during the three and ~~nine~~six months ended ~~September~~June 30, ~~2021.~~2022.

Rollforward of Allowance for Loan Losses

The following tables detail the changes in the ALL by loan segment for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020.~~2021.


		As Of and For the Three Months Ended September 30, 2021									As Of and For the Three Months Ended June 30, 2022
(in thousands)	(in thousands)	Commercial & Industrial		Commercial Real Estate		Consumer		Total		(in thousands)	Commercial & Industrial		Commercial Real Estate		Consumer		Total
Allowance for loan losses:	Allowance for loan losses:									Allowance for loan losses:
Beginning balance at June 30, 2021		$	254,938	$	92,113	$	169,657	$	516,708
Beginning balance at March 31, 2022										Beginning balance at March 31, 2022	$	178,722	$	94,696	$	141,538	$	414,956
Charge-offs	Charge-offs	(20,230)		(718)		(8,933)		(29,881)		Charge-offs	(15,512)		(252)		(7,934)		(23,698)
Recoveries	Recoveries	1,760		4,535		3,070		9,365		Recoveries	3,208		572		3,353		7,133
(Reversal of) provision for loan losses		(5,961)		(4,278)		6,290		(3,949)
Ending balance at September 30, 2021		$	230,507	$	91,652	$	170,084	$	492,243
Provision for (reversal of) loan losses										Provision for (reversal of) loan losses	(6,410)		9,202		6,654		9,446
Ending balance at June 30, 2022										Ending balance at June 30, 2022	$	160,008	$	104,218	$	143,611	$	407,837

		As Of and For the Three Months Ended September 30, 2020									As Of and For the Three Months Ended June 30, 2021
(in thousands)	(in thousands)	Commercial & Industrial		Commercial Real Estate		Consumer		Total		(in thousands)	Commercial & Industrial		Commercial Real Estate		Consumer		Total
Allowance for loan losses:	Allowance for loan losses:									Allowance for loan losses:
Beginning balance at June 30, 2020		$	229,915	$	171,526	$	187,207	$	588,648
Beginning balance at March 31, 2021										Beginning balance at March 31, 2021	$	254,777	$	113,812	$	194,625	$	563,214
Charge-offs	Charge-offs	(19,367)		(6,878)		(9,101)		(35,346)		Charge-offs	(18,729)		(3,839)		(8,285)		(30,853)
Recoveries	Recoveries	3,796		1,225		1,859		6,880		Recoveries	1,495		377		2,435		4,307
Provision for (reversal of) loan losses	Provision for (reversal of) loan losses	46,256		(22,068)		19,430		43,618		Provision for (reversal of) loan losses	17,395		(18,237)		(19,118)		(19,960)
Ending balance at September 30, 2020		$	260,600	$	143,805	$	199,395	$	603,800
Ending balance at June 30, 2021										Ending balance at June 30, 2021	$	254,938	$	92,113	$	169,657	$	516,708

											As Of and For the Six Months Ended June 30, 2022
(in thousands)										(in thousands)	Commercial & Industrial		Commercial Real Estate		Consumer		Total
Allowance for loan losses:										Allowance for loan losses:
Beginning balance at December 31, 2021										Beginning balance at December 31, 2021	$	188,364	$	97,760	$	141,473	$	427,597
Charge-offs										Charge-offs	(29,275)		(2,708)		(16,862)		(48,845)
Recoveries										Recoveries	5,571		933		7,167		13,671
Provision for (reversal of) loan losses										Provision for (reversal of) loan losses	(4,652)		8,233		11,833		15,414
Ending balance at June 30, 2022										Ending balance at June 30, 2022	$	160,008	$	104,218	$	143,611	$	407,837

		As Of and For the Nine Months Ended September 30, 2021									As Of and For the Six Months Ended June 30, 2021
(in thousands)	(in thousands)	Commercial & Industrial		Commercial Real Estate		Consumer		Total		(in thousands)	Commercial & Industrial		Commercial Real Estate		Consumer		Total
Allowance for loan losses:	Allowance for loan losses:									Allowance for loan losses:
Beginning balance at December 31, 2020	Beginning balance at December 31, 2020	$	229,555	$	130,742	$	245,439	$	605,736	Beginning balance at December 31, 2020	$	229,555	$	130,742	$	245,439	$	605,736
Charge-offs	Charge-offs	(48,374)		(14,877)		(22,808)		(86,059)		Charge-offs	(28,146)		(14,158)		(13,874)		(56,178)
Recoveries	Recoveries	6,027		5,938		6,828		18,793		Recoveries	4,267		1,403		3,758		9,428
Provision for (reversal of) loan losses		43,299		(30,151)		(59,375)		(46,227)
Ending balance at September 30, 2021		$	230,507	$	91,652	$	170,084	$	492,243
Provision for loan losses										Provision for loan losses	49,262		(25,874)		(65,666)		(42,278)
Ending balance at June 30, 2021										Ending balance at June 30, 2021	$	254,938	$	92,113	$	169,657	$	516,708

		As Of and For the Nine Months Ended September 30, 2020
(in thousands)		Commercial & Industrial		Commercial Real Estate		Consumer		Total
Allowance for loan losses:
Beginning balance at December 31, 2019		$	145,782	$	67,430	$	68,190	$	281,402
Impact from adoption of ASC 326		(2,310)		(651)		85,955		82,994
Beginning balance, after adoption of ASC 326, at January 1, 2020		$	143,472	$	66,779	$	154,145	$	364,396
Charge-offs		(57,497)		(8,585)		(23,917)		(89,999)
Recoveries		8,798		2,160		6,468		17,426
Provision for loan losses		165,827		83,451		62,699		311,977
Ending balance at September 30, 2020		$	260,600	$	143,805	$	199,395	$	603,800

The ALL of ~~$492.2~~$407.8 million and the reserve for unfunded commitments of ~~$43.0~~$50.6 million, which is recorded in other liabilities, comprise the total ACL of ~~$535.2~~$458.4 million at ~~September~~June 30, ~~2021.~~2022. The ACL decreased ~~$118.3~~$11.1 million ~~from~~compared to the December 31, ~~2020, resulting in an~~2021 ACL of $469.5 million, which consisted of the ALL of $427.6 million and the reserve for unfunded commitments of $41.9 million. The ACL to loans coverage ratio of ~~1.40%~~1.11% at ~~September~~June 30, 2022 was 8 bps lower compared to December 31, 2021.

The reduction in the ACL resulted primarily from decreased specific reserves, continued positive trends in our credit performance, and the modeled impact from improvement in the current labor market. This was partially offset by loan growth and an increase in the downside weighting of the multiple scenario model which reflects increased economic uncertainty from inflation concerns and geopolitical tensions which slowed the pace of the allowance decline for the first half of the year.

The ACL is estimated using a two-year reasonable and supportable forecast period. To the extent the lives of the loans in the portfolio extend beyond the period for which a reasonable and supportable forecast can be made, the Company reverts on a straight-line basis back to the historical rates over a one-year period. Synovus utilizes multiple economic forecast scenarios sourced from a reputable third-party provider ~~and~~that are probability-weighted internally. The scenarios include a consensus baseline forecast, an

upside scenario reflecting an accelerated recovery, a downside scenario that reflects adverse economic conditions, and an additional adverse scenario that assumes consistent slow growth that is less optimistic than the baseline. At ~~September~~June 30, ~~2021,~~2022, economic scenario weights incorporated a ~~45%~~60% downside bias to the baseline scenario compared to ~~40%~~43% at ~~June 30,~~December 31, 2021. The consensus baseline outlook used in the ~~September~~June 30, ~~2021~~2022 estimate showed stable economic conditions with ~~the~~an unemployment rate ~~at 4.6%~~of 3.6% over the forecast period, compared to the December 31, 2021 baseline forecast that sloped from above 4.0% to 3.5%. The downside scenario that assumes consistent slow growth is the highest internally-weighted economic scenario and includes an unemployment rate that steadily rises to 5.2% by the end of ~~2021, compared to 4.5% used in the second quarter of 2021’s ACL estimate. The baseline economic scenario includes the impacts of enacted and certain proposed government spending measures.~~2023.

~~Reversal of provision for credit losses includes the reversals of provisions for loan losses and unfunded commitments.~~ The ~~reversal of~~ provision for credit losses of ~~$7.9~~$12.7 million and ~~$51.0~~$24.1 million for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021, respectively,~~2022 included net charge-offs of ~~$20.5~~$16.6 million and ~~$67.3~~$35.2 million, ~~respectively. The reversal~~respectively, and represented a slowing of ~~provision for credit losses and related reduction in~~allowance releases due primarily to the ~~ACL primarily resulted from the continued improvement in the credit outlook for the portfolio. This was partially offset by $10.0~~increased economic uncertainty noted above. $3.7 million and ~~$35.8~~$7.5 million in reserves, respectively, were alsoadded as a result of purchases of ~~$453.3~~$180.2 million and ~~$1.49 billion~~$361.6 million of third-party lending loans for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021, respectively, as well as net growth in loans.~~2022, respectively.

TDRs

Information about Synovus' TDRs is presented in the following tables. Synovus began entering into loan modifications with borrowers in response to the COVID-19 pandemic under the CARES Act, some of which ~~have~~had not been classified as ~~TDRs, and therefore are not included in the discussion below.~~TDRs. The CARES Act election period ended on January 1, 2022. See "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 - Summary of Significant Accounting Policies" in Synovus' ~~2020~~2021 Form 10-K for information on Synovus' loan modifications due to COVID-19. The following tables represent, by concession type, the post-modification balance for loans modified or renewed during the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021 that were reported as accruing or non-accruing TDRs.


TDRs by Concession Type	TDRs by Concession Type									TDRs by Concession Type
		Three Months Ended September 30, 2021									Three Months Ended June 30, 2022
(in thousands, except contract data)	(in thousands, except contract data)	Number of Contracts	Below Market Interest Rate		Other Concessions(1)		Total			(in thousands, except contract data)	Number of Contracts	Below Market Interest Rate		Other Concessions(1)		Total
Commercial, financial and agricultural	Commercial, financial and agricultural	44	$	3,437	$	2,642	$	6,079		Commercial, financial and agricultural	23	$	8,534	$	266	$	8,800
Owner-occupied	Owner-occupied	10	2,488		469		2,957			Owner-occupied	7	22,430		—		22,430
Total commercial and industrial	Total commercial and industrial	54	5,925		3,111		9,036			Total commercial and industrial	30	30,964		266		31,230
Investment properties	Investment properties	2	637		—		637			Investment properties	2	690		—		690
1-4 family properties	1-4 family properties	3	—		84		84			1-4 family properties	4	1,984		—		1,984
Land and development	Land and development	2	636		17		653			Land and development	1	437		—		437
Total commercial real estate	Total commercial real estate	7	1,273		101		1,374			Total commercial real estate	7	3,111		—		3,111
Consumer mortgages	Consumer mortgages	8	1,167		477		1,644			Consumer mortgages	3	159		162		321
Home equity lines		16	2,655		—		2,655
Home equity										Home equity	14	2,490		39		2,529
Other consumer loans	Other consumer loans	7	44		476		520			Other consumer loans	4	—		91		91
Total consumer	Total consumer	31	3,866		953		4,819			Total consumer	21	2,649		292		2,941
Total TDRs	Total TDRs	92	$	11,064	$	4,165	$	15,229	(2)	Total TDRs	58	$	36,724	$	558	$	37,282	(2)

		Three Months Ended September 30, 2020									Three Months Ended June 30, 2021
(in thousands, except contract data)	(in thousands, except contract data)	Number of Contracts	Below Market Interest Rate		Other Concessions(1)		Total			(in thousands, except contract data)	Number of Contracts	Below Market Interest Rate		Other Concessions(1)		Total
Commercial, financial and agricultural	Commercial, financial and agricultural	42	$	3,335	$	670	$	4,005		Commercial, financial and agricultural	18	$	1,770	$	1,174	$	2,944
Owner-occupied	Owner-occupied	7	1,753		—		1,753			Owner-occupied	5	1,155		—		1,155
Total commercial and industrial	Total commercial and industrial	49	5,088		670		5,758			Total commercial and industrial	23	2,925		1,174		4,099
Investment properties	Investment properties	2	294		93		387			Investment properties	1	419		—		419
1-4 family properties	1-4 family properties	5	74		114		188			1-4 family properties	2	158		—		158
Land and development	Land and development	1	40		—		40			Land and development	1	366		—		366
Total commercial real estate	Total commercial real estate	8	408		207		615			Total commercial real estate	4	943		—		943
Consumer mortgages	Consumer mortgages	3	496		23		519			Consumer mortgages	2	331		—		331
Home equity lines		17	471		648		1,119
Home equity										Home equity	14	900		96		996
Other consumer loans	Other consumer loans	3	48		85		133			Other consumer loans	13	187		245		432
Total consumer	Total consumer	23	1,015		756		1,771			Total consumer	29	1,418		341		1,759
Total TDRs	Total TDRs	80	$	6,511	$	1,633	$	8,144	(3)	Total TDRs	56	$	5,286	$	1,515	$	6,801	(3)

(1) Other concessions generally include term extensions, interest only payments for a period of time, or principal forgiveness, but there was 0no principal forgiveness for the three months ending ~~September~~June 30, ~~2021~~2022 and ~~2020.~~2021.

(2) No net charge-offs were recorded during the three months ended ~~September~~June 30, ~~2021~~2022.

(3) No net charge-offs were recorded during the three months ended ~~September~~June 30, ~~2020~~2021.


		Nine Months Ended September 30, 2021									Six Months Ended June 30, 2022
(in thousands, except contract data)	(in thousands, except contract data)	Number of Contracts	Below Market Interest Rate		Other Concessions(1)		Total			(in thousands, except contract data)	Number of Contracts	Below Market Interest Rate		Other Concessions(1)		Total
Commercial, financial and agricultural	Commercial, financial and agricultural	102	$	8,440	$	6,379	$	14,819		Commercial, financial and agricultural	56	$	26,434	$	807	$	27,241
Owner-occupied	Owner-occupied	20	4,897		867		5,764			Owner-occupied	20	28,534		3,857		32,391
Total commercial and industrial	Total commercial and industrial	122	13,337		7,246		20,583			Total commercial and industrial	76	54,968		4,664		59,632
Investment properties	Investment properties	8	3,040		—		3,040			Investment properties	5	1,279		6,610		7,889
1-4 family properties	1-4 family properties	10	621		123		744			1-4 family properties	11	3,197		—		3,197
Land and development	Land and development	4	1,003		59		1,062			Land and development	4	3,168		—		3,168
Total commercial real estate	Total commercial real estate	22	4,664		182		4,846			Total commercial real estate	20	7,644		6,610		14,254
Consumer mortgages	Consumer mortgages	10	1,498		477		1,975			Consumer mortgages	10	1,176		266		1,442
Home equity lines		43	4,142		258		4,400
Home equity										Home equity	25	3,419		39		3,458
Other consumer loans	Other consumer loans	93	360		5,340		5,700			Other consumer loans	6	—		139		139
Total consumer	Total consumer	146	6,000		6,075		12,075			Total consumer	41	4,595		444		5,039
Total TDRs	Total TDRs	290	$	24,001	$	13,503	$	37,504	(2)	Total TDRs	137	$	67,207	$	11,718	$	78,925	(2)

		Nine Months Ended September 30, 2020									Six Months Ended June 30, 2021
(in thousands, except contract data)	(in thousands, except contract data)	Number of Contracts	Below Market Interest Rate		Other Concessions(1)		Total			(in thousands, except contract data)	Number of Contracts	Below Market Interest Rate		Other Concessions(1)		Total
Commercial, financial and agricultural	Commercial, financial and agricultural	118	$	8,562	$	4,681	$	13,243		Commercial, financial and agricultural	58	$	5,003	$	3,737	$	8,740
Owner-occupied	Owner-occupied	19	3,573		1,530		5,103			Owner-occupied	10	2,409		399		2,808
Total commercial and industrial	Total commercial and industrial	137	12,135		6,211		18,346			Total commercial and industrial	68	7,412		4,136		11,548
Investment properties	Investment properties	6	28,963		93		29,056			Investment properties	6	2,403		—		2,403
1-4 family properties	1-4 family properties	15	867		1,105		1,972			1-4 family properties	7	621		39		660
Land and development	Land and development	3	581		—		581			Land and development	2	366		43		409
Total commercial real estate	Total commercial real estate	24	30,411		1,198		31,609			Total commercial real estate	15	3,390		82		3,472
Consumer mortgages	Consumer mortgages	19	1,568		2,589		4,157			Consumer mortgages	2	331		—		331
Home equity lines		50	926		2,530		3,456
Home equity										Home equity	27	1,487		258		1,745
Other consumer loans	Other consumer loans	50	145		2,779		2,924			Other consumer loans	86	316		4,864		5,180
Total consumer	Total consumer	119	2,639		7,898		10,537			Total consumer	115	2,134		5,122		7,256
Total TDRs	Total TDRs	280	$	45,185	$	15,307	$	60,492	(3)	Total TDRs	198	$	12,936	$	9,340	$	22,276	(3)

(1) Other concessions generally include term extensions, interest only payments for a period of time, or principal forgiveness, but there was 0no principal forgiveness for the ~~nine~~six months ending ~~September~~June 30, ~~2021~~2022 and ~~2020.~~2021.

(2) ~~NaN~~No net charge-offs were recorded during the ~~nine~~six months ended ~~September~~June 30, ~~2021~~.2022.

(3) ~~NaN~~No net charge-offs were recorded during the ~~nine~~six months ended ~~September~~June 30, ~~2020~~.2021.

For both the three and ~~nine~~six months ended ~~September~~June 30, ~~2021 respectively,~~2022, there were 23 defaults with a recorded investment of ~~$536 thousand and 7 defaults with a recorded investment of $708~~$430 thousand on accruing TDRs restructured during the previous twelve months (defaults are defined as the earlier of the TDR being placed on non-accrual status or reaching 90 days past due with respect to principal and/or interest payments) compared to ~~1 default with a recorded investment of $21 thousand and~~ 5 defaults with a recorded investment of ~~$666~~$172 thousand ~~respectively,~~ for both the three and ~~nine~~six months ended ~~September~~June 30, ~~2020.~~2021. As of ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, there were no commitments to lend a material amount of additional funds to any client whose loan was classified as a TDR.

Note 4 - Goodwill and Other Intangible Assets

During the first quarter of 2022, Synovus reorganized its internal management reporting structure to add an additional segment for Consumer Banking. The Consumer Banking segment was previously included in the Community Banking segment. In connection with the reorganization, management reallocated a portion of the Community Banking goodwill to Consumer Banking using a relative fair value approach. See "Part I - Item 1. Financial Statements and Supplementary Data - Note 10 - Segment Reporting" in this Report for additional information.

Goodwill allocated to each reporting unit at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020~~2021 is presented as follows:

(in thousands) September 30, 2021 December 31, 2020
Community Banking Reporting Unit $ 256,323 $ 256,323
Wholesale Banking Reporting Unit 171,636 171,636
Consumer Mortgage Reporting Unit — —
Wealth Management Reporting Unit 24,431 24,431
Total Goodwill $ 452,390 $ 452,390

~~The following table presents changes in the carrying amount of goodwill for the three and nine months ended September 30, 2021 and 2020.~~

Three Months Ended September 30, Nine Months Ended September 30,
(in thousands) 2021 2020 2021 2020
Balance at beginning of period $ 452,390 $ 497,267 $ 452,390 $ 497,267
Changes during the period from:
Goodwill impairment — (44,877) — (44,877)
Balance at end of period $ 452,390 $ 452,390 $ 452,390 $ 452,390


(in thousands)	Wholesale Banking Reporting Unit		Community Banking Reporting Unit		Consumer Banking Reporting Unit		Mortgage Reporting Unit		Wealth Management Reporting Unit		Total Goodwill
Balance at December 31, 2021	$	171,636	$	256,323	$	—	$	—	$	24,431	$	452,390
Changes during the period from:
Reallocation	—		(114,701)		114,701		—		—		—
Balance at June 30, 2022	$	171,636	$	141,622	$	114,701	$	—	$	24,431	$	452,390

Goodwill is evaluated for impairment on an annual basis or whenever an event occurs or circumstances change to indicate that it is more likely than not that an impairment loss has been incurred (i.e., a triggering event). Synovus performs its annual evaluation of goodwill impairment during the fourth quarter of each year. ~~During~~Due to the ~~three months ended September 30, 2020, Synovus recorded~~Company’s reorganization of its reporting structure during the first quarter of 2022, as described above, the Company thereby performed a ~~$44.9 million non-cash goodwill~~qualitative impairment ~~charge representing all~~assessment of the ~~goodwill allocated to the Consumer Mortgage~~impacted reporting ~~unit resulting from~~units and determined that performing a combination of factors, including the extended duration of lower market valuations, high volumes in refinance activity that have reduced mortgage yields, and the clarity around longer term policy actions designed to keep interest rates low. See "Part II - Item 8. Financial Statements and Supplementary Data - Note 7 - Goodwill and Other Intangible Assets" to the consolidated financial statements of Synovus' 2020 Form 10-K for information on Synovus' quantitative ~~assessments of goodwill~~ impairment ~~during 2020.~~test was not necessary.

The following table shows the gross carrying amount and accumulated amortization of other intangible assets as of ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, which primarily consist of core deposit intangible assets. The CDI is being amortized over its estimated useful life of approximately ten years utilizing an accelerated method. Aggregate other intangible assets amortization expense for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022, was ~~$2.4~~$2.1 million and ~~$7.1~~$4.2 million, respectively. Aggregate other intangible assets amortization expense for the three and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021, was ~~$2.6~~$2.4 million and ~~$7.9~~$4.8 million, respectively.


(in thousands)	(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value		(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
September 30, 2021
June 30, 2022								June 30, 2022
CDI	CDI	$	57,400	$	(26,091)	$	31,309	CDI	$	57,400	$	(31,831)	$	25,569
Other	Other	12,500		(5,834)		6,666		Other	12,500		(6,709)		5,791
Total other intangible assets	Total other intangible assets	$	69,900	$	(31,925)	$	37,975	Total other intangible assets	$	69,900	$	(38,540)	$	31,360

December 31, 2020
December 31, 2021								December 31, 2021
CDI	CDI	$	57,400	$	(19,829)	$	37,571	CDI	$	57,400	$	(28,178)	$	29,222
Other	Other	12,500		(4,959)		7,541		Other	12,500		(6,126)		6,374
Total other intangible assets	Total other intangible assets	$	69,900	$	(24,788)	$	45,112	Total other intangible assets	$	69,900	$	(34,304)	$	35,596

Note 5 - Shareholders' Equity and Other Comprehensive Income (Loss)

Repurchases of Common Stock

Synovus announced on January ~~26, 2021~~20, 2022 that its Board of Directors authorized share repurchases of up to ~~$200~~$300 million in ~~2021.~~2022. During the three months ended ~~September~~June 30, ~~2021,~~2022, Synovus repurchased under this program a total of ~~$74.6~~$3.3 million, or

~~1.8 million~~ 78 thousand shares of its common stock, at an average price of ~~$42.00~~$42.71 per share, and during the ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022, Synovus repurchased a total of ~~$167.1~~$13.0 million, or ~~3.7 million~~281 thousand shares of its common stock, at an average price of ~~$44.88~~$46.17 per share.

Changes in Accumulated Other Comprehensive Income (Loss) by Component (Net of Income Taxes)

The following tables illustrate activity within the balances in accumulated other comprehensive income (loss) by component for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020.~~2021.

Changes in Accumulated Other Comprehensive Income (Loss) by Component (Net of Income Taxes)
(in thousands)
Net unrealized gains (losses) on investment securities available for sale(1)
Net unrealized gains (losses) on cash flow hedges(1)
Post-retirement unfunded health benefit Total
Balance at June 30, 2021 $ 19,301 $ 26,425 $ — $ 45,726
Other comprehensive income (loss) before reclassifications (41,437) (6,037) — (47,474)
Amounts reclassified from AOCI (719) (2,995) — (3,714)
Net current period other comprehensive income (loss) (42,156) (9,032) — (51,188)
Balance at September 30, 2021 $ (22,855) $ 17,393 $ — $ (5,462)
Balance at June 30, 2020 $ 134,245 $ 68,263 $ 462 $ 202,970
Other comprehensive income (loss) before reclassifications (21,806) (6,635) — (28,441)
Amounts reclassified from AOCI 1,149 (764) — 385
Net current period other comprehensive income (loss) (20,657) (7,399) — (28,056)
Balance at September 30, 2020 $ 113,588 $ 60,864 $ 462 $ 174,914
Balance, December 31, 2020 $ 105,669 $ 52,966 $ — $ 158,635
Other comprehensive income (loss) before reclassifications (129,280) (28,657) — (157,937)
Amounts reclassified from AOCI 756 (6,916) — (6,160)
Net current period other comprehensive income (loss) (128,524) (35,573) — (164,097)
Balance at September 30, 2021 $ (22,855) $ 17,393 $ — $ (5,462)
Balance, December 31, 2019 $ 83,666 $ (18,487) $ 462 $ 65,641
Other comprehensive income (loss) before reclassifications 86,678 80,404 — 167,082
Amounts reclassified from AOCI (56,756) (1,053) — (57,809)
Net current period other comprehensive income (loss) 29,922 79,351 — 109,273
Balance at September 30, 2020 $ 113,588 $ 60,864 $ 462 $ 174,914


Changes in Accumulated Other Comprehensive Income (Loss) by Component (Net of Income Taxes)
(in thousands)	Net unrealized gains (losses) on investment securities available for sale(1)		Net unrealized gains (losses) on cash flow hedges(1)		Total
Balance at March 31, 2022	$	(542,439)	$	(119,626)	$	(662,065)
Other comprehensive income (loss) before reclassifications	(327,080)		(36,815)		(363,895)
Amounts reclassified from AOCI	—		(745)		(745)
Net current period other comprehensive income (loss)	(327,080)		(37,560)		(364,640)
Balance at June 30, 2022	$	(869,519)	$	(157,186)	$	(1,026,705)

Balance at March 31, 2021	$	(15,316)	$	30,594	$	15,278
Other comprehensive income (loss) before reclassifications	34,617		(1,437)		33,180
Amounts reclassified from AOCI	—		(2,732)		(2,732)
Net current period other comprehensive income (loss)	34,617		(4,169)		30,448
Balance at June 30, 2021	$	19,301	$	26,425	$	45,726

Balance, December 31, 2021	$	(67,980)	$	(14,341)	$	(82,321)
Other comprehensive income (loss) before reclassifications	(801,539)		(140,432)		(941,971)
Amounts reclassified from AOCI	—		(2,413)		(2,413)
Net current period other comprehensive income (loss)	(801,539)		(142,845)		(944,384)
Balance at June 30, 2022	$	(869,519)	$	(157,186)	$	(1,026,705)

Balance, December 31, 2020	$	105,669	$	52,966	$	158,635
Other comprehensive income (loss) before reclassifications	(87,843)		(22,620)		(110,463)
Amounts reclassified from AOCI	1,475		(3,921)		(2,446)
Net current period other comprehensive income (loss)	(86,368)		(26,541)		(112,909)
Balance at June 30, 2021	$	19,301	$	26,425	$	45,726

(1) For all periods presented, the ending balance in net unrealized gains (losses) on investment securities available for sale and cash flow hedges includes unrealized losses of $13.3 million and $12.1 million, respectively, related to residual tax effects remaining in OCI due to previously established deferred tax asset valuation allowances in 2010 and 2011. In accordance with ASC 740-20-45-11(b), under the portfolio approach, these unrealized losses are realized at the time the entire portfolio is sold or disposed.

Note 6 - Fair Value Accounting

See "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 - Summary of Significant Accounting Policies" of Synovus' ~~2020~~2021 Form 10-K for a description of valuation methodologies for assets and liabilities measured at fair value on a recurring and non-recurring basis.

The following table presents assets and liabilities measured at estimated fair value on a recurring basis.


		September 30, 2021								December 31, 2020									June 30, 2022								December 31, 2021
(in thousands)	(in thousands)	Level 1		Level 2		Level 3		Total Estimated Fair Value		Level 1		Level 2		Level 3		Total Estimated Fair Value		(in thousands)	Level 1		Level 2		Level 3		Total Estimated Fair Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
Assets	Assets																	Assets
Trading securities:	Trading securities:																	Trading securities:
Mortgage-backed securities issued by U.S. Government agencies	Mortgage-backed securities issued by U.S. Government agencies	$	—	$	—	$	—	$	—	$	—	$	10,185	$	—	$	10,185	Mortgage-backed securities issued by U.S. Government agencies	$	—	$	2,795	$	—	$	2,795	$	—	$	197	$	—	$	197
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises	Collateralized mortgage obligations issued by U.S. Government sponsored enterprises	—		1,660		—		1,660		—		158		—		158		Collateralized mortgage obligations issued by U.S. Government sponsored enterprises	—		412		—		412		—		671		—		671
Other mortgage-backed securities	Other mortgage-backed securities	—		94		—		94		—		178		—		178		Other mortgage-backed securities	—		3,231		—		3,231		—		—		—		—
State and municipal securities	State and municipal securities	—		1,007		—		1,007		—		176		—		176		State and municipal securities	—		28		—		28		—		560		—		560
Asset-backed securities	Asset-backed securities	—		4,115		—		4,115		—		183		—		183		Asset-backed securities	—		9,811		—		9,811		—		6,963		—		6,963
Total trading securities	Total trading securities	$	—	$	6,876	$	—	$	6,876	$	—	$	10,880	$	—	$	10,880	Total trading securities	$	—	$	16,277	$	—	$	16,277	$	—	$	8,391	$	—	$	8,391
Investment securities available for sale:	Investment securities available for sale:																	Investment securities available for sale:
U.S. Treasury securities	U.S. Treasury securities	$	117,893	$	—	$	—	$	117,893	$	20,257	$	—	$	—	$	20,257	U.S. Treasury securities	$	386,584	$	—	$	—	$	386,584	$	117,838	$	—	$	—	$	117,838
U.S. Government agency securities	U.S. Government agency securities	—		54,989		—		54,989		—		82,320		—		82,320		U.S. Government agency securities	—		50,895		—		50,895		—		54,201		—		54,201
Mortgage-backed securities issued by U.S. Government agencies	Mortgage-backed securities issued by U.S. Government agencies	—		872,217		—		872,217		—		1,218,017		—		1,218,017		Mortgage-backed securities issued by U.S. Government agencies	—		631,971		—		631,971		—		779,633		—		779,633
Mortgage-backed securities issued by U.S. Government sponsored enterprises	Mortgage-backed securities issued by U.S. Government sponsored enterprises	—		7,270,933		—		7,270,933		—		5,000,046		—		5,000,046		Mortgage-backed securities issued by U.S. Government sponsored enterprises	—		7,242,641		—		7,242,641		—		8,012,301		—		8,012,301
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	—		1,057,488		—		1,057,488		—		1,250,377		—		1,250,377		Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	—		753,086		—		753,086		—		939,623		—		939,623
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises	Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises	—		438,523		—		438,523		—		370,921		—		370,921		Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises	—		605,119		—		605,119		—		481,744		—		481,744
Asset-backed securities	Asset-backed securities	—		650,000		—		650,000		—		—		—		—		Asset-backed securities	—		201,366		—		201,366		—		514,188		—		514,188
Corporate debt securities and other debt securities	Corporate debt securities and other debt securities	—		19,028		—		19,028		—		18,479		2,021		20,500		Corporate debt securities and other debt securities	—		18,188		—		18,188		—		18,801		—		18,801
Total investment securities available for sale	Total investment securities available for sale	$	117,893	$	10,363,178	$	—	$	10,481,071	$	20,257	$	7,940,160	$	2,021	$	7,962,438	Total investment securities available for sale	$	386,584	$	9,503,266	$	—	$	9,889,850	$	117,838	$	10,800,491	$	—	$	10,918,329
Mortgage loans held for sale	Mortgage loans held for sale	$	—	$	152,258	$	—	$	152,258	$	—	$	216,647	$	—	$	216,647	Mortgage loans held for sale	$	—	$	76,864	$	—	$	76,864	$	—	$	108,198	$	—	$	108,198
Private equity investments		—		—		991		991		—		—		1,021		1,021
Other investments	Other investments	—		—		10,000		10,000		—		—		—		—		Other investments	—		—		11,083		11,083		—		—		12,185		12,185
Mutual funds and mutual funds held in rabbi trusts	Mutual funds and mutual funds held in rabbi trusts	42,002		—		—		42,002		37,650		—		—		37,650		Mutual funds and mutual funds held in rabbi trusts	41,254		—		—		41,254		43,657		—		—		43,657
GGL/SBA loans servicing asset	GGL/SBA loans servicing asset	—		—		3,388		3,388		—		—		3,258		3,258		GGL/SBA loans servicing asset	—		—		3,155		3,155		—		—		3,233		3,233
Derivative assets	Derivative assets	—		244,991		—		244,991		—		401,295		—		401,295		Derivative assets	—		191,377		—		191,377		—		191,708		—		191,708
Liabilities	Liabilities																	Liabilities
Trading liability for short positions	Trading liability for short positions	—		—		—		—		—		7,717		—		7,717		Trading liability for short positions	$	—	$	5,018	$	—	$	5,018	$	—	$	200	$	—	$	200
Mutual funds held in rabbi trusts	Mutual funds held in rabbi trusts	25,396		—		—		25,396		20,752		—		—		20,752		Mutual funds held in rabbi trusts	25,995		—		—		25,995		27,205		—		—		27,205
Earnout liability		—		—		—		—		—		—		5,677		5,677
Derivative liabilities	Derivative liabilities	—		109,320		1,171		110,491		—		155,119		2,048		157,167		Derivative liabilities	—		339,722		4,993		344,715		—		95,067		3,535		98,602

Fair Value Option

Synovus has elected the fair value option for mortgage loans held for sale primarily to ease the operational burden required to maintain hedge accounting for these loans. Synovus is still able to achieve effective economic hedges on mortgage loans held for sale without the time and expense needed to manage a hedge accounting program.

The following table summarizes the difference between the fair value and the UPB of mortgage loans held for sale and the changes in fair value of these loans. An immaterial portion of these changes in fair value was attributable to changes in instrument-specific credit risk.


Mortgage Loans Held for Sale	Mortgage Loans Held for Sale					Mortgage Loans Held for Sale
(in thousands)	(in thousands)	As of September 30, 2021		As of December 31, 2020		(in thousands)	As of June 30, 2022		As of December 31, 2021
Fair value	Fair value	$	152,258	$	216,647	Fair value	$	76,864	$	108,198
Unpaid principal balance	Unpaid principal balance	148,202		210,292		Unpaid principal balance	75,996		105,785
Fair value less aggregate unpaid principal balance	Fair value less aggregate unpaid principal balance	$	4,056	$	6,355	Fair value less aggregate unpaid principal balance	$	868	$	2,413


Changes in Fair Value Included in Net Income	Changes in Fair Value Included in Net Income	Three Months Ended September 30,				Nine Months Ended September 30,				Changes in Fair Value Included in Net Income	Three Months Ended June 30,				Six Months Ended June 30,				Location in Consolidated Statements of Income
(in thousands)	(in thousands)	2021		2020		2021		2020		(in thousands)	2022		2021		2022		2021
Mortgage loans held for sale	Mortgage loans held for sale	$	(1,761)	$	251	$	(2,299)	$	6,235	Mortgage loans held for sale	$	805	$	4,094	$	(1,545)	$	(538)	Mortgage banking income

Activity for Level 3 Assets and Liabilities

See "Part II - Item 8. Financial Statements and Supplementary Data - Note 1412 - Fair Value Accounting" of Synovus' ~~2020~~2021 Form 10-K for a description of the valuation techniques and significant inputs for Level 3 assets and liabilities that are measured at fair value on a recurring and non-recurring basis. During the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021, Synovus did not have any transfers in or out of Level 3 in the fair value hierarchy. The following tables provide rollforwards of Level 3 assets and liabilities measured at fair value on a recurring basis.


				Three Months Ended September 30, 2021													Three Months Ended June 30, 2022
(in thousands)	(in thousands)	Other Investments		Private Equity Investments		GGL / SBA Loans Servicing Asset		Earnout Liability		Visa Derivative		(in thousands)					Other Investments		GGL / SBA Loans Servicing Asset		Visa Derivative
Beginning balance	Beginning balance	$	—	$	1,026	$	3,321	$	(6,427)	$	(1,473)	Beginning balance					$	12,093	$	3,451	$	(1,776)
Total gains (losses) realized/unrealized:	Total gains (losses) realized/unrealized:											Total gains (losses) realized/unrealized:
Included in earnings	Included in earnings	—		(35)		(467)		243		—		Included in earnings					(7,037)		(510)		(3,500)
Additions	Additions	10,000		—		534		—		—		Additions					6,027		—		—
Settlements	Settlements	—		—		—		6,184		302		Settlements					—		214		283
Ending balance	Ending balance	$	10,000	$	991	$	3,388	$	—	$	(1,171)	Ending balance					$	11,083	$	3,155	$	(4,993)
Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains/(losses) relating to assets/liabilities still held at September 30, 2021		$	—	$	(35)	$	—	$	—	$	—
Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains/(losses) relating to assets/liabilities still held at June 30, 2022												Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains/(losses) relating to assets/liabilities still held at June 30, 2022					$	(7,037)	$	—	$	(3,500)

				Three Months Ended September 30, 2020											Three Months Ended June 30, 2021
(in thousands)	(in thousands)	Investment Securities Available for Sale		Private Equity Investments		GGL / SBA Loans Servicing Asset		Earnout Liability		Visa Derivative		(in thousands)	Investment Securities Available for Sale		Other Investments		GGL / SBA Loans Servicing Asset		Earnout Liability		Visa Derivative
Beginning balance	Beginning balance	$	1,662	$	698	$	3,019	$	(15,924)	$	(1,755)	Beginning balance	$	—	$	1,053	$	3,305	$	(5,677)	$	(1,768)
Total gains (losses) realized/unrealized:	Total gains (losses) realized/unrealized:											Total gains (losses) realized/unrealized:
Included in earnings	Included in earnings	—		260		(187)		—		—		Included in earnings	—		(27)		(252)		(750)		—
Unrealized gains (losses) included in OCI		138		—		—		—		—
Additions	Additions	—		—		268		—		—		Additions	—		—		268		—		—
Settlements	Settlements	—		—		—		—		295		Settlements	—		—		—		—		295
Ending balance	Ending balance	$	1,800	$	958	$	3,100	$	(15,924)	$	(1,460)	Ending balance	$	—	$	1,026	$	3,321	$	(6,427)	$	(1,473)
Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains/(losses) relating to assets/liabilities still held at September 30, 2020		$	—	$	260	$	—	$	—	$	—
Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains/(losses) relating to assets/liabilities still held at June 30, 2021												Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains/(losses) relating to assets/liabilities still held at June 30, 2021	$	—	$	(27)	$	—	$	(750)	$	—


																			Six Months Ended June 30, 2022
(in thousands)														(in thousands)					Other Investments		GGL / SBA Loans Servicing Asset		Visa Derivative
Beginning balance														Beginning balance					$	12,185	$	3,233	$	(3,535)
Total gains (losses) realized/unrealized:														Total gains (losses) realized/unrealized:
Included in earnings														Included in earnings					(7,129)		(772)		(3,500)
Additions														Additions					6,027		—		—
Settlements														Settlements					—		694		2,042
Ending balance														Ending balance					$	11,083	$	3,155	$	(4,993)
Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains/(losses) relating to assets/liabilities still held at June 30, 2022														Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains/(losses) relating to assets/liabilities still held at June 30, 2022					$	(7,129)	$	—	$	(3,500)

				Nine Months Ended September 30, 2021											Six Months Ended June 30, 2021
(in thousands)	(in thousands)	Other Investments		Investment Securities Available for Sale		Private Equity Investments		GGL / SBA Loans Servicing Asset		Earnout Liability		Visa Derivative		(in thousands)	Investment Securities Available for Sale		Other Investments		GGL / SBA Loans Servicing Asset		Earnout Liability		Visa Derivative
Beginning balance	Beginning balance	$	—	$	2,021	$	1,021	$	3,258	$	(5,677)	$	(2,048)	Beginning balance	$	2,021	$	1,021	$	3,258	$	(5,677)	$	(2,048)
Total gains (losses) realized/unrealized:	Total gains (losses) realized/unrealized:													Total gains (losses) realized/unrealized:
Included in earnings	Included in earnings	—		—		(30)		(897)		(507)		—		Included in earnings	—		5		(430)		(750)		—
Sales	Sales	—		(2,021)		—		—		—		—		Sales	(2,021)		—		—		—		—
Additions	Additions	10,000		—		—		1,027		—		—		Additions	—		—		493		—		—
Settlements	Settlements	—		—		—		—		6,184		877		Settlements	—		—		—		—		575
Ending balance	Ending balance	$	10,000	$	—	$	991	$	3,388	$	—	$	(1,171)	Ending balance	$	—	$	1,026	$	3,321	$	(6,427)	$	(1,473)
Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains/(losses) relating to assets/liabilities still held at September 30, 2021		$	—	$	—	$	(30)	$	—	$	—	$	—
Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains/(losses) relating to assets/liabilities still held at June 30, 2021														Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains/(losses) relating to assets/liabilities still held at June 30, 2021	$	—	$	5	$	—	$	(750)	$	—

				Nine Months Ended September 30, 2020
(in thousands)				Investment Securities Available for Sale		Private Equity Investments		GGL / SBA Loans Servicing Asset		Earnout Liability		Visa Derivative
Beginning balance				$	2,105	$	3,887	$	3,040	$	(11,016)	$	(2,339)
Total (losses) gains realized/unrealized:
Included in earnings				—		(2,929)		(742)		(4,908)		—
Unrealized gains (losses) included in OCI				(305)		—		—		—		—
Additions				—		—		802		—		—
Settlements				—		—		—		—		879
Ending balance				$	1,800	$	958	$	3,100	$	(15,924)	$	(1,460)
Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains/(losses) relating to assets/liabilities still held at September 30, 2020				$	—	$	(2,929)	$	—	$	(4,908)	$	—

The following table presents assets measured at fair value on a non-recurring basis as of the dates indicated for which there was a fair value adjustment.


		September 30, 2021								September 30, 2020									June 30, 2022						Fair Value Adjustments for the				Location in Consolidated Statements of Income
(in thousands)	(in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total		(in thousands)	Level 1		Level 2		Level 3		Three Months Ended June 30, 2022		Six Months Ended June 30, 2022
Loans(1)	Loans(1)	$	—	$	—	$	11,123	$	11,123	$	—	$	—	$	27,440	$	27,440	Loans(1)	$	—	$	—	$	24,360	$	8,900	$	9,239	Provision for credit losses
Other real estate		—		—		—		—		—		—		1,750		1,750
MPS receivable		—		—		—		—		—		—		17,915		17,915
Other assets held for sale	Other assets held for sale	—		—		806		806		—		—		1,634		1,634		Other assets held for sale	—		—		2,725		—		492		Other operating expense

																			June 30, 2021						Fair Value Adjustments for the				Location in Consolidated Statements of Income
																			Level 1		Level 2		Level 3		Three Months Ended June 30, 2021		Six Months Ended June 30, 2021
Loans(1)																		Loans(1)	$	—	$	—	$	29,201	$	13,476	$	13,504	Provision for credit losses
Other real estate																		Other real estate	—		—		42		2		2		Other operating expense
Other assets held for sale																		Other assets held for sale	—		—		1,170		76		76		Other operating expense

(1) Collateral-dependent loans that were written down to fair value of collateral.

ORE properties are included in other assets on the consolidated balance sheets. The carrying value of ORE at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020~~2021 was ~~$1.6~~$11.4 million and ~~$1.8~~$11.8 million, respectively.

The following table presents fair value adjustments recognized in earnings for the three and nine months ended September 30, 2021 and 2020 for assets measured at fair value on a non-recurring basis still held at period-end.Fair Value of Financial Instruments

Three Months Ended September 30, Nine Months Ended September 30, Location in Consolidated Statements of Income
(in thousands) 2021 2020 2021 2020
Loans(1)
$ 13,933 $ 5,661 $ 14,823 $ 20,412 Provision for credit losses
Other real estate — 107 — 138 Other operating expenses
MPS receivable — — — 2,663 Other operating expenses
Other assets held for sale 301 — 301 2,120 Other operating expenses

~~(1)~~ ~~Collateral-dependent loans that were written down to fair value of collateral.~~

~~Fair Value of Financial Instruments~~

The following tables present the carrying and estimated fair values of financial instruments at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020.~~2021. The fair values represent management’s best estimates based on a range of methodologies and assumptions. See "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 - Summary of Significant Accounting Policies" to the consolidated financial statements of Synovus' ~~2020~~2021 Form 10-K for a description of how fair value measurements are determined.


		September 30, 2021											June 30, 2022
(in thousands)	(in thousands)	Carrying Value		Fair Value		Level 1		Level 2		Level 3		(in thousands)	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Financial assets	Financial assets											Financial assets
Total cash, cash equivalents, and restricted cash	Total cash, cash equivalents, and restricted cash	$	2,687,420	$	2,687,420	$	2,687,420	$	—	$	—	Total cash, cash equivalents, and restricted cash	$	1,665,060	$	1,665,060	$	1,665,060	$	—	$	—
Trading securities	Trading securities	6,876		6,876		—		6,876		—		Trading securities	16,277		16,277		—		16,277		—
Investment securities available for sale	Investment securities available for sale	10,481,071		10,481,071		117,893		10,363,178		—		Investment securities available for sale	9,889,850		9,889,850		386,584		9,503,266		—
Loans held for sale	Loans held for sale	550,948		551,368		—		152,258		399,110		Loans held for sale	917,679		917,347		—		76,864		840,483
Private equity investments		991		991		—		—		991
Other investments	Other investments	10,000		10,000		—		—		10,000		Other investments	11,083		11,083		—		—		11,083
Mutual funds and mutual funds held in rabbi trusts	Mutual funds and mutual funds held in rabbi trusts	42,002		42,002		42,002		—		—		Mutual funds and mutual funds held in rabbi trusts	41,254		41,254		41,254		—		—
Loans, net	Loans, net	37,848,787		38,054,067		—		—		38,054,067		Loans, net	40,796,943		40,886,790		—		—		40,886,790
GGL/SBA loans servicing asset	GGL/SBA loans servicing asset	3,388		3,388		—		—		3,388		GGL/SBA loans servicing asset	3,155		3,155		—		—		3,155
FRB and FHLB stock	FRB and FHLB stock	159,930		159,930		—		159,930		—		FRB and FHLB stock	206,177		206,177		—		206,177		0
Derivative assets	Derivative assets	244,991		244,991		—		244,991		—		Derivative assets	191,377		191,377		—		191,377		—
Financial liabilities	Financial liabilities											Financial liabilities
Non-interest-bearing deposits	Non-interest-bearing deposits	$	15,787,882	$	15,787,882	$	—	$	15,787,882	$	—	Non-interest-bearing deposits	$	16,876,710	$	16,876,710	$	—	$	16,876,710	$	—
Non-time interest-bearing deposits	Non-time interest-bearing deposits	27,701,975		27,701,975		—		27,701,975		—		Non-time interest-bearing deposits	27,084,663		27,084,663		—		27,084,663		—
Time deposits	Time deposits	4,198,562		4,214,960		—		4,214,960		—		Time deposits	5,073,327		5,052,977		—		5,052,977		—
Total deposits	Total deposits	$	47,688,419	$	47,704,817	$	—	$	47,704,817	$	—	Total deposits	$	49,034,700	$	49,014,350	$	—	$	49,014,350	$	—
Federal funds purchased and securities sold under repurchase agreements	Federal funds purchased and securities sold under repurchase agreements	262,548		262,548		262,548		—		—		Federal funds purchased and securities sold under repurchase agreements	345,242		345,242		345,242		—		—
Trading liability for short positions												Trading liability for short positions	5,018		5,018		—		5,018		—
Short-term borrowings												Short-term borrowings	250,000		250,000		—		250,000		—
Long-term debt	Long-term debt	1,203,761		1,254,585		—		1,254,585		—		Long-term debt	1,804,104		1,793,812		—		1,793,812		—
Mutual funds held in rabbi trusts	Mutual funds held in rabbi trusts	25,396		25,396		25,396		—		—		Mutual funds held in rabbi trusts	25,995		25,995		25,995		—		—
Derivative liabilities	Derivative liabilities	110,491		110,491		—		109,320		1,171		Derivative liabilities	344,715		344,715		—		339,722		4,993


		December 31, 2020											December 31, 2021
(in thousands)	(in thousands)	Carrying Value		Fair Value		Level 1		Level 2		Level 3		(in thousands)	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Financial assets	Financial assets											Financial assets
Total cash, cash equivalents, and restricted cash	Total cash, cash equivalents, and restricted cash	$	4,252,917	$	4,252,917	$	4,252,917	$	—	$	—	Total cash, cash equivalents, and restricted cash	$	3,009,853	$	3,009,853	$	3,009,853	$	—	$	—
Trading securities	Trading securities	10,880		10,880		—		10,880		—		Trading securities	8,391		8,391		—		8,391		—
Investment securities available for sale	Investment securities available for sale	7,962,438		7,962,438		20,257		7,940,160		2,021		Investment securities available for sale	10,918,329		10,918,329		117,838		10,800,491		—
Loans held for sale	Loans held for sale	760,123		760,939		—		216,647		544,292		Loans held for sale	750,642		749,980		—		108,198		641,782
Private equity investments		1,021		1,021		—		—		1,021
Other investments												Other investments	12,185		12,185		—		—		12,185
Mutual funds and mutual funds held in rabbi trusts	Mutual funds and mutual funds held in rabbi trusts	37,650		37,650		37,650		—		—		Mutual funds and mutual funds held in rabbi trusts	43,657		43,657		43,657		—		—
Loans, net	Loans, net	37,647,248		37,605,881		—		—		37,605,881		Loans, net	38,884,361		39,118,275		—		—		39,118,275
GGL/SBA loans servicing asset	GGL/SBA loans servicing asset	3,258		3,258		—		—		3,258		GGL/SBA loans servicing asset	3,233		3,233		—		—		3,233
FRB and FHLB stock	FRB and FHLB stock	157,520		157,520		—		157,520		—		FRB and FHLB stock	159,941		159,941		—		159,941		—
Derivative assets	Derivative assets	401,295		401,295		—		401,295		—		Derivative assets	191,708		191,708		—		191,708		—

Financial liabilities	Financial liabilities											Financial liabilities
Non-interest-bearing deposits	Non-interest-bearing deposits	$	13,477,854	$	13,477,854	$	—	$	13,477,854	$	—	Non-interest-bearing deposits	$	16,392,653	$	16,392,653	$	—	$	16,392,653	$	—
Non-time interest-bearing deposits	Non-time interest-bearing deposits	27,265,521		27,265,521		—		27,265,521		—		Non-time interest-bearing deposits	28,917,148		28,917,148		—		28,917,148		—
Time deposits	Time deposits	5,948,196		5,970,146		—		5,970,146		—		Time deposits	4,117,475		4,125,673		—		4,125,673		—
Total deposits	Total deposits	$	46,691,571	$	46,713,521	$	—	$	46,713,521	$	—	Total deposits	$	49,427,276	$	49,435,474	$	—	$	49,435,474	$	—
Federal funds purchased and securities sold under repurchase agreements	Federal funds purchased and securities sold under repurchase agreements	227,922		227,922		227,922		—		—		Federal funds purchased and securities sold under repurchase agreements	264,133		264,133		264,133		—		—
Trading liability for short positions	Trading liability for short positions	7,717		7,717		—		7,717		—		Trading liability for short positions	200		200		—		200		—
Long-term debt	Long-term debt	1,202,494		1,266,825		—		1,266,825		—		Long-term debt	1,204,229		1,243,147		—		1,243,147		—
Earnout liability		5,677		5,677		—		—		5,677
Mutual funds held in rabbi trusts	Mutual funds held in rabbi trusts	20,752		20,752		20,752		—		—		Mutual funds held in rabbi trusts	27,205		27,205		27,205		—		—
Derivative liabilities	Derivative liabilities	157,167		157,167		—		155,119		2,048		Derivative liabilities	98,602		98,602		—		95,067		3,535

Note 7 - Derivative Instruments and Hedging Activities

Synovus utilizes derivative instruments to manage its exposure to various types of interest rate risk, exposures related to liquidity and credit risk, and to facilitate client transactions. The primary types of derivative instruments utilized by Synovus consist of interest rate swaps, interest rate lock commitments made to prospective mortgage loan clients, commitments to sell fixed-rate mortgage loans, and foreign currency exchange forwards. Interest rate lock commitments represent derivative instruments since it is intended that such loans will be sold. Synovus also provides foreign currency exchange services, primarily forward contracts, with counterparties to allow commercial clients to mitigate exchange rate risk. Synovus covers its risk by entering into an offsetting foreign currency exchange forward contract. Synovus is party to master netting arrangements with its dealer counterparties; however, Synovus does not offset assets and liabilities under these arrangements for financial statement presentation purposes. See "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 - Summary of Significant Accounting Policies" to the consolidated financial statements of Synovus' ~~2020~~2021 Form 10-K for additional information regarding accounting policies for derivatives.

Hedging Derivatives

Cash flow ~~hedge~~hedging relationships mitigate exposure to the variability of future cash flows or other forecasted transactions. Synovus has entered into interest rate swap contracts to manage overall cash flow changes related to interest rate risk exposure on index-based variable rate commercial loans. The contracts effectively modify Synovus' exposure to interest rate risk by utilizing receive fixed/pay index-based variable rate interest rate swaps. During the three and six months ended June 30, 2022, notional amounts of $250.0 million and $1.65 billion, respectively, in either spot starting or forward starting cash flow hedges were added.

For cash f~~low~~flow hedges, ~~if the hedged exposure is a cash flow exposure,~~ the effective portion of the gain or loss on the derivative instrument is reported initially as a component of accumulated other comprehensive income (loss), net of the tax impact, and subsequently reclassified into earnings when the hedged transaction affects earnings with the impacts recorded in the same income statement line item used to present the earnings effect of the hedged item. When a cash flow hedge relationship is discontinued but the hedged cash flows, or forecasted transactions, are still expected to occur, gains or losses that were accumulated in OCI are amortized into earnings over the same periods which the hedged transactions would have affected earnings. If, however, it is probable the forecasted

transactions will no longer occur, the remaining accumulated amounts in OCI for the impacted cash flow hedges are immediately recognized in earnings.

Synovus recorded no unrealized gains ~~of $488~~during the three and six months ended June 30, 2022 and $757 thousand, or ~~$364~~$565 thousand, after tax, in OCI during the ~~third~~first quarter ~~of 2021 and $1.2 million, or $930 thousand, after-tax, in OCI, during the first nine months~~ of 2021 related to terminated cash flow

hedges, which are being recognized into earnings in conjunction with the effective terms of the original swaps through the second quarter of 2026. Synovus recognized pre-tax income of ~~$4.0~~$1.0 million and ~~$9.3~~$3.2 million during the three and ~~nine~~six months ended ~~September~~June 30, 2022 and $3.7 million and $5.3 million for the three and six months ended June 30, 2021 related to thethe amortization ofof terminated cash flow hedges.

As of ~~September~~June 30, ~~2021,~~2022, Synovus expects to reclassify into earnings approximately ~~$42~~$84 million in pre-tax ~~income~~loss due to the receipt or payment of interest payments on all cash flow hedges within the next twelve months. Included in this amount is approximately $72 million in pre-tax income related to the amortization of terminated cash flow hedges. As of ~~September~~June 30, ~~2021,~~2022, the maximum length of time over which Synovus is hedging its exposure to the variability in future cash flows is through the third quarter of 2026.

Fair value hedging relationships mitigate exposure to the change in fair value of an asset or liability. Synovus has entered into receive-fixed, pay-variable interest rate swap contracts to hedge the change in the fair value due to fluctuations in market interest rates for outstanding fixed-rate long-term debt and interest-bearing deposits. The changes in fair value of the fair value hedges are recorded through earnings with an offset against changes in the fair value of the hedged item within interest expense in the consolidated statements of income. All components of each derivative instrument’s gain/(loss) are included in the assessment of hedge effectiveness. During the second quarter of 2022, notional amounts of $819.4 million in fair value hedges were added.

For derivative instruments that are not designated as hedging instruments, changes in the fair value of the derivatives are recognized in earnings immediately.

Counterparty Credit Risk and Collateral

Entering into derivative contracts 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 are often used to express the volume of these transactions, but the amounts potentially subject to credit risk are much smaller. Synovus assesses the credit risk of its dealer counterparties by regularly monitoring publicly available credit rating information, evaluating other market indicators, and periodically reviewing detailed financials. Dealer collateral requirements are determined via risk-based policies and procedures and in accordance with existing agreements. Synovus seeks to minimize dealer credit risk by dealing with highly rated counterparties and by obtaining collateral for exposures above certain predetermined limits. Management closely monitors credit conditions within the client swap portfolio, which management deems to be of higher risk than dealer counterparties. Collateral is secured at origination and credit related fair value adjustments are recorded against the asset value of the derivative as deemed necessary based upon an analysis, which includes consideration of the current asset value of the swap, client risk rating, and client standing with regards to its swap contractual obligations and other related matters. Such asset values fluctuate based upon changes in interest rates regardless of changes in notional amounts and changes in client specific risk.

Collateral Requirements

Certain derivative transactions have collateral requirements, both at the inception of the trade and as the value of each derivative position changes. As of ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, collateral totaling ~~$72.7~~$31.6 million and ~~$155.4~~$64.5 million, respectively, was pledged to the derivative counterparties to comply with collateral requirements.

For derivatives cleared through central clearing houses, the variation margin payments made are legally characterized as settlements of the derivatives. As a result, these variation margin payments are netted against the fair value of the respective derivative contracts in the consolidated balance sheets and related disclosures. At ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, Synovus had a variation margin of ~~$92.7~~$37.0 million and ~~$162.7~~$94.6 million respectively, each reducing the derivative liability.

The following table reflects the ~~notional amount and~~estimated fair value of derivative instruments included ~~on the consolidated balance sheets.~~

September 30, 2021 December 31, 2020
Fair Value Fair Value
(in thousands) Notional Amount
Derivative Assets (1)
Derivative Liabilities (2)
Notional Amount
Derivative Assets (1)
Derivative Liabilities (2)
Derivatives in cash flow hedging relationships:
Interest rate contracts $ 3,600,000 $ 44,294 $ 3,799 $ 3,000,000 $ 80,802 $ —
Total derivatives designated as hedging instruments     $ 44,294 $ 3,799 $ 80,802 $ —
Derivatives not designated
  as hedging instruments:
Interest rate contracts(3)
$ 9,273,899 $ 197,018 $ 105,488 $ 8,784,141 $ 314,234 $ 153,204
Mortgage derivatives - interest rate lock commitments 159,858 3,100 — 306,138 6,259 —
Mortgage derivatives - forward commitments to sell fixed-rate mortgage loans 155,500 579 — 230,500 — 1,611
Other contracts(4)
206,365 — 33 234,884 — 304
Visa derivative — — 1,171 — — 2,048
Total derivatives not designated as hedging instruments     $ 200,697 $ 106,692 $ 320,493 $ 157,167

~~(1)~~ ~~Derivative assets are recorded~~ in other assets ~~on the consolidated balance sheets.~~

~~(2)~~ ~~Derivative liabilities are recorded in~~and other liabilities on the consolidated balance ~~sheets.~~sheets along with their respective notional amounts on a gross basis.


	June 30, 2022						December 31, 2021
			Estimated Fair Value						Estimated Fair Value
(in thousands)	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
Derivatives in cash flow hedging relationships:
Interest rate contracts	$	5,250,000	$	248	$	182,949	$	3,600,000	$	22,004	$	20,395
Total cash flow hedges			$	248	$	182,949			$	22,004	$	20,395

Derivatives in fair value hedging relationships:
Interest rate contracts	$	819,389	$	298	$	4,571	$	—	$	—	$	—
Total fair value hedges			$	298	$	4,571			$	—	$	—
Total derivatives designated as hedging instruments			$	546	$	187,520			$	22,004	$	20,395

Derivatives not designated as hedging instruments:
Interest rate contracts(1)	$	9,250,136	$	188,994	$	152,201	$	9,653,600	$	167,560	$	74,514
Mortgage derivatives - interest rate lock commitments	108,135		1,181		—		99,006		2,105		—
Mortgage derivatives - forward commitments to sell fixed-rate mortgage loans	126,000		233		—		105,500		—		122
Risk participation agreements	448,186		—		1		374,214		—		36
Foreign exchange contracts	22,082		423		—		22,387		39		—
Visa derivative	—		—		4,993		—		—		3,535
Total derivatives not designated as hedging instruments			$	190,831	$	157,195			$	169,704	$	78,207

~~(3)~~(1) Includes interest rate contracts for client swaps and offsetting positions, net of variation margin payments.

~~(4)~~ Includes risk participation agreements sold. Additionally, the notional amount of risk participation agreements purchased was $56.2 million and $2.6 million at September 30, 2021 and December 31, 2020, respectively.

Synovus also provides foreign currency exchange services, primarily forward contracts, with counterparties to allow commercial clients to mitigate exchange rate risk. Synovus covers its risk by entering into an offsetting foreign currency exchange forward contract. The notional amount of foreign currency exchange forwards was $16.1 million and $24.1 million at September 30 2021 and December 31, 2020, respectively. The fair value of foreign currency exchange forwards was negligible at September 30, 2021 and December 31, 2020 due to the very short duration of these contracts.

The following table presents the effect of hedging derivative instruments on the consolidated statements of income and the total amounts for the respective line item affected for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021.

Three Months Ended September 30, Nine Months Ended September 30,
(in thousands) 2021 2020 2021 2020
Total amounts presented in the consolidated statements of income in interest income on loans $ 7,266 $ 8,509 $ 23,213 $ 13,595

Gain/loss on cash flow hedging relationships:(1)
Interest rate swaps:
Realized gains (losses) reclassified from AOCI, pre-tax, to interest income on loans 4,009 1,031 9,265 1,421
Pre-tax income recognized on cash flow hedges $ 4,009 $ 1,031 $ 9,265 $ 1,421
~~(1)~~ ~~See "Part I - Item 1. Financial Statements~~


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Total interest income/(expense) amounts presented in the consolidated statements of income:
Interest income on loans, including fees	$	2,986	$	7,605	$	11,642	$	15,947
Interest expense on deposits	1,447		—		1,447		—
Interest expense on long-term debt	584		—		584		—

Gain/(loss) on cash flow hedging relationships:
Interest rate contracts:
Realized gains (losses) reclassified from AOCI, pre-tax, to interest income on loans	978		3,657		3,167		5,256
Pre-tax income recognized on cash flow hedges	$	978	$	3,657	$	3,167	$	5,256

Gain/(loss) on fair value hedging relationships:
Interest rate contracts related to interest-bearing deposits:
Recognized on derivatives	(2,818)		—		(2,818)		—
Recognized on hedged items	2,818		—		2,818		—
Pre-tax income recognized on interest-bearing deposits fair value hedges	$	—	$	—	$	—	$	—

Interest rate contracts related to long-term debt:
Recognized on derivatives	(1,455)		—		(1,455)		—
Recognized on hedged items	1,455		—		1,455		—
Pre-tax income recognized on long-term debt fair value hedges	$	—	$	—	$	—	$	—

Total pre-tax income recognized on fair value hedges	$	—	$	—	$	—	$	—

The following table presents the carrying amount and ~~Supplementary Data - Note 5 - Shareholders' Equity and Other Comprehensive Income (Loss)~~associated cumulative basis adjustment related to the application of hedge accounting that is included in ~~this Report for additional information.~~the carrying amount of the hedged liabilities in fair value hedging relationships.


	June 30, 2022				December 31, 2021
	Hedged Items Currently Designated				Hedged Items Currently Designated
(in thousands)	Carrying Amount of Assets/(Liabilities)		Hedge Accounting Basis Adjustment		Carrying Amount of Assets/(Liabilities)		Hedge Accounting Basis Adjustment
Interest-bearing deposits	$	(619,390)	$	2,818	$	—	$	—
Long-term debt	(197,760)		1,455		—		—

3031

The pre-tax effect of changes in fair value from derivative instruments not designated as hedging instruments on the consolidated statements of income for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021 is presented below.


			Gain (Loss) Recognized in Consolidated Statements of Income										Gain (Loss) Recognized in Consolidated Statements of Income
			Three Months Ended September 30,				Nine Months Ended September 30,						Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	(in thousands)	Location in Consolidated Statements of Income	2021		2020		2021		2020		(in thousands)	Location in Consolidated Statements of Income	2022		2021		2022		2021
Derivatives not designated as hedging instruments:	Derivatives not designated as hedging instruments:										Derivatives not designated as hedging instruments:
Interest rate contracts(1)	Interest rate contracts(1)	Capital markets income	$	164	$	176	$	474	$	225	Interest rate contracts(1)	Capital markets income	$	736	$	(637)	$	1,409	$	310
Other contracts(2)		Capital markets income	90		47		272		(286)
Mortgage derivatives - interest rate lock commitments	Mortgage derivatives - interest rate lock commitments	Mortgage banking income	(1,388)		2,532		(3,160)		8,922		Mortgage derivatives - interest rate lock commitments	Mortgage banking income	394		(53)		(924)		(1,772)
Mortgage derivatives - forward commitments to sell fixed-rate mortgage loans	Mortgage derivatives - forward commitments to sell fixed-rate mortgage loans	Mortgage banking income	922		(396)		2,190		(1,624)		Mortgage derivatives - forward commitments to sell fixed-rate mortgage loans	Mortgage banking income	(3,210)		(4,974)		355		1,268
Risk participation agreements											Risk participation agreements	Capital markets income	10		(19)		35		182
Foreign exchange contracts											Foreign exchange contracts	Capital markets income	320		—		385		—
Total derivatives not designated as hedging instruments	Total derivatives not designated as hedging instruments		$	(212)	$	2,359	$	(224)	$	7,237	Total derivatives not designated as hedging instruments		$	(1,750)	$	(5,683)	$	1,260	$	(12)

(1) Gain (loss) represents net fair value adjustments (including credit related adjustments) for client swaps and offsetting positions. ~~Additionally, losses related to termination of client swaps of $2.5 million were recorded in other non-interest expense during the first quarter of 2020.~~

~~(2)~~ ~~Includes risk participation agreements sold.~~

Note 8 - Net Income Per Common Share

The following table displays a reconciliation of the information used in calculating basic and diluted net income per common share for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020.~~2021. Diluted net income per common share incorporates the potential impact of contingently issuable shares, including awards which require future service as a condition of delivery of the underlying common stock.


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share data)	(in thousands, except per share data)	2021		2020		2021		2020		(in thousands, except per share data)	2022		2021		2022		2021
Basic Net Income Per Common Share:	Basic Net Income Per Common Share:									Basic Net Income Per Common Share:
Net income available to common shareholders	Net income available to common shareholders	$	178,482	$	83,283	$	535,193	$	198,414	Net income available to common shareholders	$	169,761	$	177,909	$	332,507	$	356,711
Weighted average common shares outstanding	Weighted average common shares outstanding	146,308		147,314		147,622		147,304		Weighted average common shares outstanding	145,328		148,113		145,301		148,289
Net income per common share, basic	Net income per common share, basic	$	1.22	$	0.57	$	3.63	$	1.35	Net income per common share, basic	$	1.17	$	1.20	$	2.29	$	2.41
Diluted Net Income Per Common Share:	Diluted Net Income Per Common Share:									Diluted Net Income Per Common Share:
Net income available to common shareholders	Net income available to common shareholders	$	178,482	$	83,283	$	535,193	$	198,414	Net income available to common shareholders	$	169,761	$	177,909	$	332,507	$	356,711
Weighted average common shares outstanding	Weighted average common shares outstanding	146,308		147,314		147,622		147,304		Weighted average common shares outstanding	145,328		148,113		145,301		148,289
Effect of dilutive outstanding equity-based awards, warrants, and earnout payments		1,393		662		1,447		733
Effect of dilutive outstanding equity-based awards and earnout payments										Effect of dilutive outstanding equity-based awards and earnout payments	987		1,634		1,188		1,475
Weighted average diluted common shares	Weighted average diluted common shares	147,701		147,976		149,069		148,037		Weighted average diluted common shares	146,315		149,747		146,489		149,764
Net income per common share, diluted	Net income per common share, diluted	$	1.21	$	0.56	$	3.59	$	1.34	Net income per common share, diluted	$	1.16	$	1.19	$	2.27	$	2.38

For the three months ended ~~September~~June 30, 2022, there were 21 thousand potentially dilutive shares, and for the three months ended June 30, 2021, ~~and 2020,~~ there were ~~32 thousand and 758 thousand, respectively,~~0 potentially dilutive shares related to stock options to purchase shares of common stock that were ~~outstanding, and for~~outstanding. For the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, there were 2111 thousand and ~~602~~21 thousand, respectively, potentially dilutive shares related to stock options to purchase shares of common stock that were outstanding. These potentially dilutive shares were not included in the computation of diluted net income per common share because the effect would be anti-dilutive.

Note 9 - Commitments and Contingencies

In the normal course of business, Synovus enters into commitments to extend credit such as loan commitments and letters of credit to meet the financing needs of its clients. Synovus uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to extend credit are agreements to lend to a client as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration

dates or other termination clauses and may require payment of a fee. Synovus also has commitments to fund certain ~~low-income housing investments, solar energy, new market,~~tax credits, CRA partnerships, and ~~CRA~~other investments.

The contractual amount of these financial instruments represents Synovus' maximum credit risk should the counterparty draw upon the commitment, and should the counterparty subsequently fail to perform according to the terms of the contract. Since many of the commitments are expected to expire without being drawn upon, total commitment amounts do not necessarily represent future cash requirements. Additionally, certain commitments (primarily consumer) can generally be canceled by providing notice to the borrower.

The ACL associated with unfunded commitments and letters of credit is recorded within other liabilities on the consolidated balance sheets. At ~~September~~June 30, ~~2021,~~2022, the ACL for unfunded commitments was ~~$43.0~~$50.6 million, compared to a reserve of ~~$47.8~~$41.9 million at December 31, ~~2020.~~2021. Additionally, an immaterial amount of unearned fees relating to letters of credit are recorded within other liabilities on the consolidated balance sheets.

Synovus invests in certain LIHTC partnerships which are engaged in the development and operation of affordable multi-family housing pursuant to Section 42 of the Code. Additionally, Synovus invests in certain solar energy tax credit partnerships pursuant to Section 48 of the Code and certain new market tax credit partnerships pursuant to section 45D of the Code. Synovus typically acts as a limited partner in these investments and does not exert control over the operating or financial policies of the partnerships and as such, is not considered the primary beneficiary of the partnership. For certain of its LIHTC investments, Synovus provides financing during the construction and development of the properties and is at risk for the funded amount of its equity investment plus the outstanding amount of any construction loans in excess of the fair value of the collateral for the loan, but has no obligation to fund the operations or working capital of the partnerships and is not exposed to losses beyond Synovus’ investment. Synovus receives tax credits related to these investments which are subject to recapture by taxing authorities based on compliance provisions required to be met at the project level.

Synovus also invests in ~~certain other~~ CRA partnerships, including SBIC ~~programs.~~programs, and other investments. The SBIC is a program initiated by the SBA in 1958 to assist in the funding of small business loans.


(in thousands)	(in thousands)	September 30, 2021		December 31, 2020		(in thousands)	June 30, 2022		December 31, 2021
Letters of credit(1)	Letters of credit(1)	$	184,317	$	190,562	Letters of credit(1)	$	202,904	$	183,463
Commitments to fund commercial and industrial loans	Commitments to fund commercial and industrial loans	8,893,056		8,200,608		Commitments to fund commercial and industrial loans	9,794,706		9,595,793
Commitments to fund commercial real estate, construction, and land development loans	Commitments to fund commercial real estate, construction, and land development loans	3,490,875		3,290,041		Commitments to fund commercial real estate, construction, and land development loans	3,829,403		3,593,171
Commitments under home equity lines of credit	Commitments under home equity lines of credit	1,738,063		1,602,831		Commitments under home equity lines of credit	1,951,166		1,805,869
Unused credit card lines	Unused credit card lines	1,008,471		1,012,313		Unused credit card lines	475,843		473,582
Other loan commitments	Other loan commitments	580,936		472,233		Other loan commitments	680,366		604,353
Total letters of credit and unfunded lending commitments	Total letters of credit and unfunded lending commitments	$	15,895,718	$	14,768,588	Total letters of credit and unfunded lending commitments	$	16,934,388	$	16,256,231


LIHTC, solar energy tax credit, new market tax credit, and other CRA partnerships:
Tax credits, CRA partnerships, and other investments:						Tax credits, CRA partnerships, and other investments:
Carrying amount included in other assets	Carrying amount included in other assets	$	380,624	$	262,855	Carrying amount included in other assets	$	471,264	$	438,322
Amount of future funding commitments included in carrying amount		213,791		133,946
Amount of future funding commitments						Amount of future funding commitments	255,031		250,733
Permanent and short-term construction loans and letter of credit commitments(2)	Permanent and short-term construction loans and letter of credit commitments(2)	172,285		82,786		Permanent and short-term construction loans and letter of credit commitments(2)	164,957		204,391
Funded portion of permanent and short-term loans and letters of credit(3)	Funded portion of permanent and short-term loans and letters of credit(3)	69,823		9,528		Funded portion of permanent and short-term loans and letters of credit(3)	159,721		104,315

(1) Represent the contractual amount net of risk participations purchased of ~~$26.4~~$26.1 million and ~~$30.2~~$26.1 million at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively.

(2) Represent the contractual amount net of risk participations of ~~$3.6~~$3.7 million and ~~$1.8~~$6.0 million at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020.~~2021.

(3) Represent the contractual amount net of risk participations of ~~$2.4~~$4.1 million and ~~$234 thousand~~$3.0 million at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020.~~2021.

Merchant Services

In accordance with credit and debit card association rules, Synovus provides merchant processing services for clients with a contractual arrangement under which certain sales and processing support are provided through an outside merchant services provider with Synovus owning the merchant contract relationship. In addition, Synovus sponsors various third-party MPS businesses that process credit and debit card transactions on behalf of merchants. In connection with these services, a liability may arise in the event of a billing dispute between the merchant and a cardholder that is ultimately resolved in the cardholder's favor. If the merchant defaults on its obligations, the cardholder, through its issuing bank, generally has until six months after the date of the transaction to present a chargeback to the MPS, which is primarily liable for any losses on covered transactions. However, if a sponsored MPS fails to meet its obligations, then Synovus, as the sponsor, could be held liable for the disputed amount. Synovus seeks to mitigate this risk through its contractual arrangements with the MPS and the merchants by withholding future settlements, retaining cash reserve accounts and/or obtaining other security. For the three and ~~nine~~six months ended ~~September~~June 30, 2022, Synovus and the sponsored entities processed and settled $31.00 billion and $59.60 billion of transactions,

respectively. For the three and six months ended June 30, 2021, Synovus and the sponsored entities processed and settled ~~$28.39~~$28.89 billion and ~~$83.54~~$55.15 billion of transactions, respectively. ~~For the three and nine months ended September 30, 2020, Synovus and the sponsored entities processed and settled $20.23 billion and $55.54 billion of transactions, respectively.~~

Synovus covered chargebacks related to a particular sponsored MPS during 2019 and 2018 where the MPS’s cash reserve account was unavailable to support the chargebacks. As of September 30, 2021, the remaining amount, net of reserves, included in other assets and classified in NPAs, is $15.3 million, compared to $15.6 million at December 31, 2020. While Synovus has contractual protections to mitigate against loss, repayment of the amounts owed to Synovus will depend in large part upon the continued financial viability and/or valuation of the MPS.

Legal Proceedings

Synovus and its subsidiaries are subject to various legal proceedings, claims and disputes that arise in the ordinary course of its business. Additionally, in the ordinary course of business, Synovus and its subsidiaries are subject to regulatory and governmental examinations, information gathering requests, inquiries and investigations. Synovus, like many other financial institutions, has been the target of legal actions and other proceedings asserting claims for damages and related relief for losses. These actions include mortgage loan and other loan put-back claims, claims and counterclaims asserted by individual borrowers related to their loans, and allegations of violations of state and federal laws and regulations relating to banking practices, including putative class action matters. In addition to actual damages, if Synovus does not prevail in such asserted legal actions, credit-related litigation could result in additional write-downs or charge-offs of assets, which could adversely affect Synovus' results of operations during the period in which the write-down or charge-off were to occur.

Synovus carefully examines and considers each legal matter, and, in those situations where Synovus determines that a particular legal matter presents loss contingencies that are both probable and reasonably estimable, Synovus establishes an appropriate reserve. An event is considered to be probable if the future event is likely to occur. While the final outcome of any legal proceeding is inherently uncertain, based on the information currently available, advice of counsel and available insurance coverage, management believes that the amounts accrued with respect to legal matters as of ~~September~~June 30, ~~2021~~2022 are adequate. The actual costs of resolving legal claims may be higher or lower than the amounts accrued.

In addition, where Synovus determines that there is a reasonable possibility of a loss in respect of legal matters, Synovus considers whether it is able to estimate the total reasonably possible loss or range of loss. An event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely.” An event is “remote” if “the chance of the future event or events occurring is more than slight but less than reasonably possible." In many situations, Synovus may be unable to estimate reasonably possible losses due to the preliminary nature of the legal matters, as well as a variety of other factors and uncertainties. For those legal matters where Synovus is able to estimate a range of reasonably possible losses, management currently estimates the aggregate range from our outstanding litigation is from zero to $5 million in excess of the amounts accrued, if any, related to those matters. This estimated aggregate range is based upon information currently available to Synovus, and the actual losses could prove to be lower or higher. As there are further developments in these legal matters, Synovus will reassess these matters, and the estimated range of reasonably possible losses may change as a result of this assessment. Based on Synovus' current knowledge and advice of counsel, management presently does not believe that the liabilities arising from these legal matters will have a material adverse effect on Synovus' consolidated financial condition, results of operations or cash flows. However, it is possible that the ultimate resolution of these legal matters could have a material adverse effect on Synovus' results of operations or financial condition for any particular period.

Synovus intends to vigorously pursue all available defenses to these legal matters, but will also consider other alternatives, including settlement, in situations where there is an opportunity to resolve such legal matters on terms that Synovus considers to be favorable, including in light of the continued expense and distraction of defending such legal matters. Synovus maintains insurance coverage, which may be available to cover legal fees, or potential losses that might be incurred in connection with such legal matters. The above-noted estimated range of reasonably possible losses does not take into consideration insurance coverage which may or may not be available for the respective legal matters.

Note 10 - Segment Reporting

Synovus' business segments are based on the products and services provided or the clients served and reflect the manner in which financial information is evaluated by the chief operating decision ~~makers.~~maker. During the first quarter of 2022, Synovus reorganized its internal management reporting structure to separate the previous Community Banking segment into Consumer Banking and Community Banking segments. Accordingly, its operating segment reporting structure was also updated. Synovus now has 34 major reportable business segments: Wholesale Banking, Community Banking, ~~Wholesale~~Consumer Banking, and Financial Management Services, with functional activities such as treasury, technology, operations, marketing, finance, enterprise risk, legal, human resources, corporate communications, executive management, among others, included in Treasury and Corporate Other.

Business segment results are determined based upon Synovus' management reporting system, which assigns balance sheet and income statement items to each of the business segments. Certain assets, liabilities, ~~revenues,~~revenue, and ~~expenses~~expense not allocated or attributable to a particular business segment are included in Treasury and Corporate Other. Synovus's third-party lending consumer loans and loans held for sale as well as PPP loans are included in Treasury and Corporate Other. The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to GAAP. As a result, reported segment results are not necessarily comparable with similar information reported by other financial institutions.

The Community Banking business segment serves clients using a relationship-based approach through its branch, ATM, commercial, and private wealth network in addition to mobile, Internet, and telephone banking. This segment primarily provides individual, small business, and corporate clients with an array of comprehensive banking products and services including commercial, home equity, and other consumer loans, credit and debit cards, and deposit accounts.

The Wholesale Banking business segment serves primarily larger corporate and governmental clients by providing commercial lending, capital markets, and deposit services through specialty teams including middle market, CRE, senior housing, national accounts, premium finance, structured lending, healthcare, asset-based lending, public finance, restaurant services, and community investment capital.

The Community Banking business segment primarily serves small and medium-sized commercial clients as well as individual private wealth clients using a relationship-based approach. The commercial component of this segment focuses on locally owned and operated businesses.Private wealth services are delivered to the individuals operating the businesses as well as other individuals in the communities in which the Community Bank operates. A comprehensive set of banking products are offered to the client set including a full suite of lending, payments, and depository products as well as financial planning services.

The Consumer Banking business segment serves individual and small business clients through its branch and ATM network, in addition to digital and telephone channels. This segment provides individuals and small businesses with an array of comprehensive banking products and services including depository accounts, credit and debit cards, payment solutions, goal-based planning, home equity and other consumer loans, and small business lending solutions.

The Financial Management Services business segment serves its clients by providing mortgage and trust services and also specializing in professional portfolio management for fixed-income securities, investment banking, the execution of securities transactions as a broker/dealer, asset management, financial planning, and family office services, as well as the provision of individual investment advice on equity and other securities.

Synovus uses a centralized FTP methodology to attribute appropriate net interest income to the business segments. The intent of the FTP methodology is to transfer interest rate risk from the business segments by providing matched duration funding of assets and liabilities. The result is to centralize the financial impact, management, and reporting of interest rate risk in the Treasury and Corporate Other function where it can be centrally monitored and managed. Treasury and Corporate Other includes certain assets and/or liabilities managed within that function. Additionally, Treasury and Corporate Other also charges (credits) an internal cost of funds for assets held in (or pays for funding provided by) each business segment. The process for determining FTP is based on a number of factors and assumptions, including prevailing market interest rates, the expected lives of various assets and liabilities, and the Company's broader funding profile.

The following tables present certain financial information for each reportable business segment for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020.~~2021. The application and development of management reporting methodologies is a dynamic process and is subject to periodic enhancements. As these enhancements are made, financial results presented by each reportable business segment may be periodically revised.

~~During~~Loan and deposit transfers occur from time to time between reportable business segments primarily to maintain the ~~three months ended September 30, 2020, Synovus recognized a $44.9 million non-cash goodwill impairment charge representing all~~migration of the goodwill allocated to the Consumer Mortgage reporting unit (which is included in the FMS reportable segment) resulting from a combination of factors, including the extended duration of lower market valuations, high volumes in refinance activity that have reduced mortgage yields,clients between segments. Prior period loan and ~~the clarity around longer term policy actions designed to keep interest rates low.~~deposit segment balances are not adjusted for these transfers.


		Three Months Ended September 30, 2021											Three Months Ended June 30, 2022
(in thousands)	(in thousands)	Community Banking		Wholesale Banking		Financial Management Services		Treasury and Corporate Other		Synovus Consolidated		(in thousands)	Wholesale Banking		Community Banking		Consumer Banking		Financial Management Services		Treasury and Corporate Other		Synovus Consolidated
Net interest income	Net interest income	$	200,014	$	138,662	$	20,076	$	26,165	$	384,917	Net interest income	$	168,988	$	100,892	$	103,727	$	18,403	$	33,378	$	425,388
Non-interest revenue	Non-interest revenue	33,721		10,739		51,248		19,247		114,955		Non-interest revenue	9,285		12,468		22,095		45,195		8,223		97,266
Non-interest expense	Non-interest expense	73,789		22,486		45,027		125,730		267,032		Non-interest expense	27,026		33,083		47,534		44,333		130,075		282,051
Pre-provision net revenue	Pre-provision net revenue	$	159,946	$	126,915	$	26,297	$	(80,318)	$	232,840	Pre-provision net revenue	$	151,247	$	80,277	$	78,288	$	19,265	$	(88,474)	$	240,603


		Three Months Ended September 30, 2020											Three Months Ended June 30, 2021
(in thousands)	(in thousands)	Community Banking		Wholesale Banking		Financial Management Services		Treasury and Corporate Other		Synovus Consolidated		(in thousands)	Wholesale Banking		Community Banking		Consumer Banking		Financial Management Services		Treasury and Corporate Other		Synovus Consolidated
Net interest income	Net interest income	$	218,880	$	139,079	$	22,251	$	(3,220)	$	376,990	Net interest income	$	136,126	$	99,200	$	103,681	$	18,935	$	23,918	$	381,860
Non-interest revenue	Non-interest revenue	27,034		5,528		65,825		16,024		114,411		Non-interest revenue	7,000		12,472		19,740		52,345		15,530		107,087
Non-interest expense	Non-interest expense	71,107		19,843		93,038		132,667		316,655		Non-interest expense	21,290		27,543		43,908		46,773		131,017		270,531
Pre-provision net revenue	Pre-provision net revenue	$	174,807	$	124,764	$	(4,962)	$	(119,863)	$	174,746	Pre-provision net revenue	$	121,836	$	84,129	$	79,513	$	24,507	$	(91,569)	$	218,416


		Nine Months Ended September 30, 2021											Six Months Ended June 30, 2022
(in thousands)	(in thousands)	Community Banking		Wholesale Banking		Financial Management Services		Treasury and Corporate Other		Synovus Consolidated		(in thousands)	Wholesale Banking		Community Banking		Consumer Banking		Financial Management Services		Treasury and Corporate Other		Synovus Consolidated
Net interest income	Net interest income	$	609,137	$	408,862	$	60,006	$	62,629	$	1,140,634	Net interest income	$	324,984	$	197,018	$	201,133	$	36,818	$	57,682	$	817,635
Non-interest revenue	Non-interest revenue	95,687		25,058		162,176		50,076		332,997		Non-interest revenue	17,683		26,051		43,739		90,359		24,768		202,600
Non-interest expense	Non-interest expense	215,716		64,499		139,474		385,008		804,697		Non-interest expense	53,674		63,503		92,249		88,472		256,603		554,501
Pre-provision net revenue	Pre-provision net revenue	$	489,108	$	369,421	$	82,708	$	(272,303)	$	668,934	Pre-provision net revenue	$	288,993	$	159,566	$	152,623	$	38,705	$	(174,153)	$	465,734


		Nine Months Ended September 30, 2020											Six Months Ended June 30, 2021
(in thousands)	(in thousands)	Community Banking		Wholesale Banking		Financial Management Services		Treasury and Corporate Other		Synovus Consolidated		(in thousands)	Wholesale Banking		Community Banking		Consumer Banking		Financial Management Services		Treasury and Corporate Other		Synovus Consolidated
Net interest income	Net interest income	$	634,480	$	407,265	$	59,704	$	25,367	$	1,126,816	Net interest income	$	270,200	$	198,340	$	210,783	$	39,930	$	36,463	$	755,716
Non-interest revenue	Non-interest revenue	81,105		20,537		166,185		123,925		391,752		Non-interest revenue	14,319		23,092		38,874		110,928		30,830		218,043
Non-interest expense	Non-interest expense	226,674		64,117		184,824		401,461		877,076		Non-interest expense	42,014		54,463		87,464		94,447		259,277		537,665
Pre-provision net revenue	Pre-provision net revenue	$	488,911	$	363,685	$	41,065	$	(252,169)	$	641,492	Pre-provision net revenue	$	242,505	$	166,969	$	162,193	$	56,411	$	(191,984)	$	436,094


		September 30, 2021											June 30, 2022
(dollars in thousands)	(dollars in thousands)	Community Banking		Wholesale Banking		Financial Management Services		Treasury and Corporate Other		Synovus Consolidated		(dollars in thousands)	Wholesale Banking		Community Banking		Consumer Banking		Financial Management Services		Treasury and Corporate Other		Synovus Consolidated

Loans, net of deferred fees and costs	Loans, net of deferred fees and costs	$	10,623,206	$	20,179,466	$	4,989,708	$	2,548,650	$	38,341,030	Loans, net of deferred fees and costs	$	23,235,771	$	8,449,876	$	2,782,037	$	5,061,990	$	1,675,106	$	41,204,780

Total deposits	Total deposits	$	31,640,281	$	11,249,829	$	807,391	$	3,990,918	$	47,688,419	Total deposits	$	11,514,037	$	12,326,818	$	19,829,216	$	593,705	$	4,770,924	$	49,034,700
Total full-time equivalent employees	Total full-time equivalent employees	2,171		286		804		1,692		4,953		Total full-time equivalent employees	310		610		1,505		810		1,770		5,005

		December 31, 2020											December 31, 2021
(dollars in thousands)	(dollars in thousands)	Community Banking		Wholesale Banking		Financial Management Services		Treasury and Corporate Other		Synovus Consolidated		(dollars in thousands)	Wholesale Banking		Community Banking		Consumer Banking		Financial Management Services		Treasury and Corporate Other		Synovus Consolidated
Loans, net of deferred fees and costs	Loans, net of deferred fees and costs	$	11,171,013	$	18,810,729	$	5,370,790	$	2,900,452	$	38,252,984	Loans, net of deferred fees and costs	$	21,496,050	$	8,231,451	$	2,559,892	$	4,994,494	$	2,030,071	$	39,311,958
Total deposits	Total deposits	$	29,141,242	$	11,958,105	$	739,200	$	4,853,024	$	46,691,571	Total deposits	$	12,370,554	$	12,557,631	$	19,668,846	$	826,639	$	4,003,606	$	49,427,276
Total full-time equivalent employees	Total full-time equivalent employees	2,299		285		832		1,718		5,134		Total full-time equivalent employees	284		607		1,532		794		1,670		4,887

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

In this Report, the words “Synovus,” “the Company,” “we,” “us,” and “our” refer to Synovus Financial Corp. together with Synovus Bank and Synovus' other wholly-owned subsidiaries, except where the context requires otherwise.

FORWARD-LOOKING STATEMENTS

Certain statements made or incorporated by reference in this Report which are not statements of historical fact, including those under “Management's Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere in this Report, constitute forward-looking statements within the meaning of, and subject to the protections of, Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements include statements with respect to Synovus' beliefs, plans, objectives, goals, targets, expectations, anticipations, assumptions, estimates, intentions and future performance and involve known and unknown risks, many of which are beyond Synovus' control and which may cause Synovus' actual results, performance or achievements or the financial services industry or economy generally, to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.

All statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements through Synovus' use of words such as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “predicts,” “could,” “should,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the future or otherwise regarding the outlook for Synovus' future business and financial performance and/or the performance of the financial services industry and economy in general. Forward-looking statements are based on the current beliefs and expectations of Synovus' management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements in this document. Many of these factors are beyond Synovus' ability to control or predict. These factors include, but are not limited to:


(1)						the risk that competition in the financial services industry, including competition from nontraditional banking institutions such as Fintechs, may adversely affect our future earnings and growth;

(2)						the risk that we may not realize the expected benefits from our ~~efficiency and growth~~strategic initiatives or that we may not be able to realize ~~such cost savings or revenue benefits~~growth and efficiency gains in the time period expected, which could ~~negatively~~regularly affect our future profitability;

~~(2)~~						~~the risk that competition in the financial services industry may adversely affect our future earnings and growth;~~

(3)						our ability to attract and retain employees and the impact of senior leadership transitions that are key to our ~~growth and efficiency strategies;~~strategic initiatives;

(4)						~~the risks and uncertainties related to the impact of the COVID-19 pandemic, and its variants, on our assets, business, capital and liquidity, financial condition, prospects and results of operations;~~

~~(5)~~						the risk that an economic downturn and contraction, including a recession, could have a material adverse effect on our capital, financial condition, credit quality, results of operations and future growth, including the risk that the strength of the current economic ~~recovery~~environment could be weakened by the continued impact of COVID-19 ~~and its variants~~ and by current supply chain ~~challenges;~~challenges and inflation;

(5)						risks related to our strategic implementation of new lines of business, new products and services, and new technologies and an expansion of our existing business opportunities with a renewed focus on innovation;

(6)						the risk that we may be required to make substantial expenditures to keep pace with regulatory initiatives and the rapid technological changes in the financial services market;

(7)						the risk that prolonged periods of inflation could have on our business, profitability and our stock price;

(8)						changes in the interest rate environment, including changes to the federal funds rate, and competition in our primary market area may result in increased funding costs or reduced earning assets yields, thus reducing margins and net interest income;

(9)						the impact of recent and proposed changes in governmental policy, laws and regulations, ~~including recently enacted laws, regulations and guidance related to government stimulus programs related to the COVID-19 pandemic,~~ proposed and recently enacted changes in monetary policy and in the regulation and taxation of banks and financial institutions, or the interpretation or application thereof and the uncertainty of future implementation and enforcement of these regulations, including the risk of inflationary pressure and interest rate increases;

~~(7)~~						~~the risk that we may be required to make substantial expenditures to keep pace with regulatory initiatives and the rapid technological changes in the financial services market;~~

~~(8)~~						risks related to our implementation of core and transformational initiatives, including new lines of business, new products and services, and new technologies and an expansion of our existing business opportunities with a renewed focus on innovation;

~~(9)~~						risks that our asset quality may deteriorate, our allowance for credit losses may prove to be inadequate or may be negatively affected by credit risk exposures, and the risk that we may be unable to obtain full payment in respect of any loan or other receivables;

(10)						changes in the interest rate environment, including changes to the federal funds rate to include a negative interest rate environment, and competition in our primary market area may result in increased funding costs or reduced earning assets yields, thus reducing margins and net interest income;

~~(11)~~						the risk that our current and future information technology system enhancements and operational initiatives may not be successfully implemented, which could negatively impact our operations;

~~(12)~~(11)						risks related to our business relationships with, and reliance upon, third parties that have strategic partnerships with us or that provide key components of our business infrastructure, including the costs of services and products provided to us by third parties, and risks related to disruptions in service or financial difficulties with a third-party vendor or business relationship;


~~(13)~~(12)						the risk that our enterprise risk management framework, our compliance program, or our corporate governance and supervisory oversight functions may not identify or address risks adequately, which may result in unexpected losses;

(13)						risks that our asset quality may deteriorate or that our allowance for credit losses may prove to be inadequate or may be negatively affected by credit risk exposures;


(14)						~~changes in the cost and availability of funding due to changes in the deposit market and credit market;~~

~~(15)~~						risks related to the ability of our operational framework to identify and manage risks associated with our business such as credit risk, compliance risk, reputational risk, and operational risk, including by virtue of our relationships with third-party business partners, as well as our relationship with third-party vendors and other service providers;

(15)						the risk that we may be exposed to potential losses in the event of fraud and/or theft, or in the event that a third-party vendor, obligor, or business partner fails to pay amounts due to us under that relationship or under any arrangement that we enter into with them;

(16)						our ability to identify and address cyber-security risks such as data security breaches, malware, "denial of service" attacks, "hacking" and identity theft, a failure of which could disrupt our business and result in the disclosure of and/or misuse or misappropriation of confidential or proprietary information, disruption or damage of our systems, increased costs, significant losses, or adverse effects to our reputation;

(17)						the ~~risk that we may be exposed~~risks and uncertainties related to ~~potential losses in~~ the ~~event~~impact of ~~fraud and/or theft, or in~~ the ~~event that a third-party vendor, obligor, or~~continuing COVID-19 pandemic on our assets, business, ~~partner fails to pay amounts due to us under that relationship or under any arrangement that we enter into with them;~~capital and liquidity, financial condition, prospects and results of operations;

(18)						changes in the cost and availability of funding due to changes in the deposit market and credit market;

(19)						the impact on our financial results, reputation, and business if we are unable to comply with all applicable federal and state regulations or other supervisory actions or directives and any necessary capital initiatives;

~~(19)~~(20)						the risks that if economic conditions worsen further or regulatory capital rules are modified, we may be required to undertake initiatives to improve or conserve our capital position;

~~(20)~~						~~risks related to the continued use, availability and reliability of LIBOR and the risks related to the transition from LIBOR to any alternate reference rate we may use;~~

(21)						restrictions or limitations on access to funds from historical and alternative sources of liquidity could adversely affect our overall liquidity, which could restrict our ability to make payments on our obligations and our ability to support asset growth and sustain our operations and the operations of Synovus Bank;

(22)						our ability to receive dividends from our subsidiaries could affect our liquidity, including our ability to pay dividends or take other capital actions;

(23)						risks related to our ESG strategies and initiatives, the scope and pace of which could alter our reputation and shareholder, employee, client and third-party relationships;

(24)						risks related to the continued use, availability and reliability of LIBOR and the risks related to the transition from LIBOR to any alternate reference rate we may use;

(25)						the risk that we may not be able to identify suitable bank and non-bank acquisition opportunities as part of our growth strategy and even if we are able to identify attractive acquisition opportunities, we may not be able to complete such transactions on favorable terms or realize the anticipated benefits from such acquisitions;

~~(24)~~(26)						the risk that we could realize losses if we sell non-performing assets and the proceeds we receive are lower than the carrying value of such assets;

~~(25)~~(27)						risks related to regulatory approval to take certain actions, including any dividends on our common stock or preferred stock, any repurchases of common stock or any other issuance or redemption of any other regulatory capital instruments;

~~(26)~~(28)						the risk that our concentrated operations in the Southeastern U.S. make us vulnerable to local economic conditions, local weather catastrophes, public health issues and other external events;

~~(27)~~(29)						the costs and effects of litigation, investigations or similar matters, or adverse facts and developments related thereto;

~~(28)~~(30)						risks related to the fluctuation in our stock price and general volatility in the stock market;

~~(29)~~(31)						the effects of any damages to our reputation resulting from developments related to any of the items identified above; and

~~(30)~~(32)						other factors and other information contained in this Report and in other reports and filings that we make with the SEC under the Exchange Act, including, without limitation, those found in "Part II - Item 1A. Risk Factors" of this Report.

For a discussion of these and other risks that may cause actual results to differ from expectations, refer to “Part I - Item 1A. Risk Factors” and other information contained in Synovus' ~~2020~~2021 Form 10-K and our other periodic filings, including quarterly reports on Form 10-Q and current reports on Form 8-K, that we file from time to time with the SEC. All written or oral forward-looking statements that are made by or are attributable to Synovus are expressly qualified by this cautionary notice. You should not place undue reliance on any forward-looking statements since those statements speak only as of the date on which the statements are made. Synovus undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of new information or unanticipated events, except as may otherwise be required by law.

INTRODUCTION AND CORPORATE PROFILE

Synovus Financial Corp. is a financial services company and a registered bank holding company headquartered in Columbus, Georgia. Through its wholly-owned subsidiary, Synovus Bank, a Georgia state-chartered bank that is a member of the Federal Reserve System, the Company provides commercial and ~~retail~~consumer banking in addition to a full suite of specialized

products and services including private banking, treasury management, wealth management, mortgage services, premium

finance, asset-based lending, structured lending, and international banking. Synovus also provides financial planning and investment advisory services through its wholly-owned subsidiaries, Synovus Trust and Synovus Securities, as well as its GLOBALT and Creative Financial Group divisions.

Synovus Bank is positioned in some of the highest growth markets in the Southeast, with ~~285~~261 branches in Alabama, Florida, Georgia, South Carolina, and Tennessee.

The following financial review summarizes the significant trends, changes in our business, transactions, and other matters affecting Synovus’ results of operations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and financial condition as of ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020.~~2021. This discussion supplements, and should be read in conjunction with, the unaudited interim consolidated financial statements and notes thereto contained elsewhere in this Report and the consolidated financial statements of Synovus, the notes thereto, and management’s discussion and analysis contained in Synovus' ~~2020~~2021 Form 10-K.

Management's Discussion and Analysis of Financial Condition and Results of Operations consists of:

•Discussion of Results of Operations - Reviews Synovus' financial performance, as well as selected balance sheet items, items from the statements of income, significant transactions, and certain key ratios that illustrate Synovus' performance.

•Credit Quality, Capital Resources and Liquidity - Discusses credit quality, market risk, capital resources, and liquidity, as well as performance trends. It also includes a discussion of liquidity policies, how Synovus obtains funding, and related performance.

•Additional Disclosures - Discusses additional important matters including critical accounting policies and non-GAAP financial ~~measures used within this Report.~~measures.

A reading of each section is important to understand fully our financial performance.

DISCUSSION OF RESULTS OF OPERATIONS


Table 1 - Consolidated Financial Highlights	Table 1 - Consolidated Financial Highlights																	Table 1 - Consolidated Financial Highlights
		Three Months Ended September 30,								Nine Months Ended September 30,									Three Months Ended June 30,								Six Months Ended June 30,
(dollars in thousands, except per share data)	(dollars in thousands, except per share data)	2021			2020			Change		2021			2020			Change		(dollars in thousands, except per share data)	2022			2021			Change		2022			2021			Change
Net interest income	Net interest income	$	384,917		$	376,990		2	%	$	1,140,634		$	1,126,816		1	%	Net interest income	$	425,388		$	381,860		11	%	$	817,635		$	755,716		8	%
(Reversal of) provision for credit losses		(7,868)			43,383			(118)		(51,041)			343,956			(115)
Provision for (reversal of) credit losses																		Provision for (reversal of) credit losses	12,688			(24,598)			nm		24,088			(43,173)			nm
Non-interest revenue	Non-interest revenue	114,955			114,411			—		332,997			391,752			(15)		Non-interest revenue	97,266			107,087			(9)		202,600			218,043			(7)
Adjusted non-interest revenue(1)		114,090			114,905			(1)		332,204			309,907			7
Total TE revenue	Total TE revenue	500,608			492,357			2		1,475,932			1,521,171			(3)		Total TE revenue	523,614			489,738			7		1,022,059			975,324			5
Adjusted total revenue(1)		499,743			492,851			1		1,475,139			1,439,326			2
Non-interest expense	Non-interest expense	267,032			316,655			(16)		804,697			877,076			(8)		Non-interest expense	282,051			270,531			4		554,501			537,665			3
Adjusted non-interest expense(1)		267,053			267,946			—		801,104			815,771			(2)
Income before income taxes	Income before income taxes	240,708			131,363			83		719,975			297,536			142		Income before income taxes	227,915			243,014			(6)		441,646			479,267			(8)
Net income	Net income	186,773			91,574			104		560,065			223,286			151		Net income	178,052			186,200			(4)		349,088			373,292			(6)
Net income available to common shareholders	Net income available to common shareholders	178,482			83,283			114		535,193			198,414			170		Net income available to common shareholders	169,761			177,909			(5)		332,507			356,711			(7)
Net income per common share, basic	Net income per common share, basic	1.22			0.57			114		3.63			1.35			169		Net income per common share, basic	1.17			1.20			(3)		2.29			2.41			(5)
Net income per common share, diluted	Net income per common share, diluted	1.21			0.56			116		3.59			1.34			168		Net income per common share, diluted	1.16			1.19			(3)		2.27			2.38			(5)
Adjusted net income per common share, diluted(1)		1.20			0.89			35		3.61			1.32			173
Net interest margin(2)		3.01		%	3.10		%	(9)	bps	3.02		%	3.20		%	(18)	bps
Net charge-off ratio(2)		0.22			0.29			(7)		0.24			0.25			(1)
Return on average assets(2)		1.34			0.69			65		1.37			0.58			79
Adjusted return on average assets(1)(2)		1.33			1.05			28		1.37			0.57			80
Net interest margin(1)																		Net interest margin(1)	3.22		%	3.02		%	20	bps	3.11		%	3.03		%	8	bps
Net charge-off ratio(1)																		Net charge-off ratio(1)	0.16			0.28			(12)		0.18			0.24			(6)
Return on average assets(1)																		Return on average assets(1)	1.26			1.36			(10)		1.24			1.38			(14)
Efficiency ratio-TE	Efficiency ratio-TE	53.34			64.31			(1,097)		54.52			57.66			(314)		Efficiency ratio-TE	53.87			55.24			(137)		54.25			55.13			(88)
Adjusted tangible efficiency ratio(1)		52.96			53.83			(87)		53.82			56.13			(231)

(1) ~~See "Table 14 - Reconciliation of Non-GAAP Financial Measures” in this Report for the applicable reconciliation to the most comparable GAAP measure.~~

~~(2)~~ Annualized


		September 30, 2021			June 30, 2021			Sequential Quarter Change			September 30, 2020			Year-Over-Year Change				June 30, 2022			March 31, 2022			Sequential Quarter Change			June 30, 2021			Year-Over-Year Change
(dollars in thousands)	(dollars in thousands)																(dollars in thousands)
Loans, net of deferred fees and costs	Loans, net of deferred fees and costs	$	38,341,030		$	38,236,018		$	105,012		$	39,549,847		$	(1,208,817)		Loans, net of deferred fees and costs	$	41,204,780		$	40,169,150		$	1,035,630		$	38,236,018		$	2,968,762
Total average loans	Total average loans	37,534,133			38,496,477			(962,344)			39,762,572			(2,228,439)			Total average loans	40,590,875			39,350,761			1,240,114			38,496,477			2,094,398
Total deposits	Total deposits	47,688,419			47,171,962			516,457			44,665,904			3,022,515			Total deposits	49,034,700			48,656,244			378,456			47,171,962			1,862,738
Core deposits (excludes brokered deposits)	Core deposits (excludes brokered deposits)	44,907,718			44,203,000			704,718			40,756,645			4,151,073			Core deposits (excludes brokered deposits)	45,411,583			46,618,560			(1,206,977)			44,203,000			1,208,583
Core transaction deposits (excludes brokered and public fund deposits)	Core transaction deposits (excludes brokered and public fund deposits)	36,536,788			35,506,980			1,029,808			30,988,237			5,548,551			Core transaction deposits (excludes brokered and public fund deposits)	37,399,915			38,285,649			(885,734)			35,506,980			1,892,935
Total average deposits	Total average deposits	47,477,217			47,349,646			127,571			44,339,497			3,137,720			Total average deposits	49,015,994			49,345,364			(329,370)			47,349,646			1,666,348
Non-performing assets ratio	Non-performing assets ratio	0.45		%	0.46		%	(1)		bps	0.49		%	(4)		bps	Non-performing assets ratio	0.33		%	0.40		%	(7)		bps	0.46		%	(13)		bps
Non-performing loans ratio	Non-performing loans ratio	0.41			0.42			(1)			0.43			(2)			Non-performing loans ratio	0.26			0.33			(7)			0.42			(16)
Past due loans over 90 days	Past due loans over 90 days	0.02			0.01			1			0.02			—			Past due loans over 90 days	0.01			0.01			—			0.01			—
CET1 capital	CET1 capital	$	4,276,765		$	4,214,720		$	62,045		$	3,913,402		$	363,363		CET1 capital	$	4,612,070		$	4,485,661		$	126,409		$	4,214,720		$	397,350
Tier 1 capital	Tier 1 capital	4,813,910			4,751,865			62,045			4,450,547			363,363			Tier 1 capital	5,149,215			5,022,806			126,409			4,751,865			397,350
Total risk-based capital	Total risk-based capital	5,765,528			5,725,176			40,352			5,536,918			228,610			Total risk-based capital	6,059,074			5,936,543			122,531			5,725,176			333,898
CET1 capital ratio	CET1 capital ratio	9.58		%	9.75		%	(17)		bps	9.30		%	28		bps	CET1 capital ratio	9.46		%	9.49		%	(3)		bps	9.75		%	(29)		bps
Tier 1 capital ratio	Tier 1 capital ratio	10.79			11.00			(21)			10.57			22			Tier 1 capital ratio	10.56			10.63			(7)			11.00			(44)
Total risk-based capital ratio	Total risk-based capital ratio	12.92			13.25			(33)			13.16			(24)			Total risk-based capital ratio	12.43			12.56			(13)			13.25			(82)
Total shareholders’ equity to total assets ratio	Total shareholders’ equity to total assets ratio	9.46			9.53			(7)			9.55			(9)			Total shareholders’ equity to total assets ratio	7.99			8.55			(56)			9.53			(154)
Tangible common equity ratio(1)		7.68			7.73			(5)			7.67			1
Return on average common equity(2)		14.96			15.40			(44)			7.28			768
Adjusted return on average common equity(1)(2)		14.90			15.50			(60)			11.48			342
Adjusted return on average tangible common equity(1)(2)		16.79			17.52			(73)			13.24			355
Return on average common equity(1)																	Return on average common equity(1)	16.48			14.20			228			15.40			108

(1)~~See "Table 14 - Reconciliation of Non-GAAP Financial Measures” in this Report for the applicable reconciliation to the most comparable GAAP measure.~~

~~(2)~~ Quarter annualized

Executive Summary

Net income available to common shareholders for the ~~third~~second quarter of ~~2021~~2022 was ~~$178.5~~$169.8 million, or ~~$1.21~~$1.16 per diluted common share, ~~($1.20 on an adjusted basis(1)~~), compared to ~~$83.3~~$177.9 million, or ~~$0.56~~$1.19 per diluted common share ~~($0.89 adjusted(1)~~), for the ~~third~~second quarter of ~~2020.~~2021. Net income available to common shareholders for the first ~~nine~~six months of ~~2021~~2022 was ~~$535.2~~$332.5 million, or ~~$3.59~~$2.27 per diluted common share, ~~($3.61 adjusted(1)~~), compared to ~~$198.4~~$356.7 million, or ~~$1.34~~$2.38 per diluted common share ~~($1.32 adjusted(1)~~), for the first ~~nine~~six months of ~~2020.~~2021. The year-over-year ~~increases~~decreases for all time periods were impacted by ~~significant improvement~~a slowing of allowance releases due primarily to the increased economic uncertainty present from inflation concerns and geopolitical tensions, resulting in ~~the economic outlook impacting expected~~provision for credit losses ~~compared to 2020.~~of $12.7 million and $24.1 million, respectively, for the three and six months ended June 30, 2022, and reversals of $24.6 million and $43.2 million for the three and six months ended June 30, 2021, respectively.

Net interest income for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 was ~~$1.14 billion,~~$817.6 million, up ~~$13.8~~$61.9 million, or 8%, compared to the same period in ~~2020,~~2021, including ~~$66.5~~$10.5 million in PPP fees during ~~2021~~2022 and ~~$21.1~~$45.2 million in ~~2020.~~2021. Net interest margin was ~~down 18~~ up 8

bps over the comparable ~~nine-month~~six-month period to ~~3.02%,~~3.11% due primarily to ~~the~~positive re-mixing within earning assets and our asset-sensitive rate risk position, partially offset by a $34.7 million decline in ~~market interest rates and average growth in investment securities available for sale and interest-bearing funds held at the Federal Reserve Bank.~~PPP fees. Net interest margin for the ~~third~~second quarter was ~~stable at 3.01%,~~up 22 bps sequentially, aided by higher interest rates, lower cash balances, and managed deposit repricing.

Non-interest revenue for the second quarter of 2022 was $97.3 million, down ~~1 bp~~$9.8 million, or 9%, compared to the second quarter of 2021, with continued pressure from the liquidity environment. We expect that net interest income excluding PPP fees will increase in the remainder of the year, driven by loan growth and deployment of liquidity, which are expected to offset headwinds from continued fixed-rate repricing and the slight reduction in LIBOR.

~~Non-interest revenue for the third quarter of 2021 was $115.0 million, up $544 thousand,~~ and year-to-date was ~~$333.0~~$202.6 million, down ~~$58.8~~$15.4 million, or ~~15%~~7%, from the first half of 2021, primarily due to lower mortgage banking income and a $7.0 million write-down on a minority fintech investment partially offset by higher core banking fees(1) and higher wealth revenue(2).

Non-interest expense for the second quarter of 2022 was $282.1 million, up $11.5 million, or 4%, while year-to-date non-interest expenseof $554.5 million was up $16.8 million, or 3%, compared to the same periods in ~~2020. Gains on sales of investment securities of $76.6 million impacted the nine months ended September 30, 2020. Adjusted~~2021. The increase in non-interest ~~revenue(1)~~ ~~for the third quarter of 2021~~expense during 2022 was ~~down 1% from the third quarter of 2020,~~ primarily due to lower mortgage banking income partially offset by higher core banking fees, brokerage revenue, fiduciary and asset management fees, and capital markets income. Year-to-date adjusted non-interest revenue~~(1)~~ ~~was up 7% compared to the same period~~an increase in 2020, largely due to higher core banking fees, fiduciary and asset management fees, and brokerage revenue partially offset by lower mortgage banking income and capital markets income. In the fourth quarter of 2021, we expect adjusted non-interest revenue to decline as broad-based growth is more than offset by continued normalization of mortgage banking income, seasonality of our brokerage business, and third quarter 2021 gains that are not expected to repeat.

Non-interest expense for the third quarter of 2021 was $267.0 million, down $49.6 million, or 16%, and year-to-date was down $72.4 million, or 8%, compared to the same periods in 2020. Goodwill impairment expense of $44.9 million impacted the three and nine months ended September 30, 2020. Adjusted non-interest expense~~(1)~~ ~~declined in 2021 primarily due to 2020 being impacted by higher~~ expense associated with ~~Synovus Forward as well as a 5% reduction~~merit and elevated performance incentives, resumption of normal business activities post COVID-19, and investments in headcount year-over-year, which primarily came from back-office support functions and offset other personnel expense increases. The efficiency ratio-TE for the first nine months of 2021 was 54.52%, compared to 57.66% for the first nine months of 2020. We remain committed to prudent expense management, enabling us to continue investing in areas that position us for greater success, deliver a superior client experience, and promote profitable growth.new growth initiatives.

At ~~September~~June 30, ~~2021,~~2022, loans, net of deferred fees and costs, of ~~$38.34~~$41.20 billion, increased ~~$88.0 million~~$1.89 billion, or 5%, from December 31, ~~2020. C&I loans declined $585.4~~2021. Excluding a $312.9 million ~~with net growth offsetting a $1.41 billion~~ decline in PPP loans, primarily from forgiveness, loans increased $2.21 billion, or 6%, led by growth in C&I and CRE loans ~~increased $214.6 million,~~as commercial production and consumer loans increased $458.9 million, led by purchases of $1.49 billion in third-party lending loans, offset by declines in consumer mortgages and HELOCs. While payoff activity remains a significant headwind, recent production, client conversations, and our loan pipeline lead usline utilization continue to ~~expect loan growth to be in the lower half of our initial 2021 guidance of 2%-4%, which excludes PPP and third-party lending loans.~~drive growth.

~~Credit~~At June 30, 2022, credit metrics remained stable and near ~~historical lows as of September 30, 2021~~historically low levels with NPAs at 4533 bps, NPLs at 4126 bps, and total past dues at 1614 bps, as a percentage of total ~~loans,~~loans. Net charge-offs remained low at $16.6 million, or 16 bps annualized, and ~~YTD net charge-offs at 24~~$35.2 million, or 18 bps ~~annualized. We expect net charge-offs to remain relatively stable~~annualized, for the three and ~~criticized and classified loans to continue to decline in the fourth quarter of 2021, assuming no material change in the economic environment.~~six months ended June 30, 2022. The ACL at ~~September~~June 30, ~~2021~~2022 totaled ~~$535.2~~$458.4 million, a decrease of ~~$118.3~~$11.1 million from December 31, ~~2020, resulting~~2021, and resulted primarily from continued positive trends in our credit performance, including reduction of NPLs, and quality and mix of new loan originations, mostly offset by an ~~improving overall~~uncertain and generally negative economic outlook. The ACL to loans coverage ratio at ~~September~~June 30, ~~2021~~2022 was ~~1.40%.~~1.11%, 8 bps lower compared to December 31, 2021.

At ~~September~~June 30, ~~2021,~~2022, Synovus' CET1 ratio ~~was 9.58%~~of 9.46%, well in excess of regulatory ~~requirements. Synovus announced on January 26,~~requirements, declined 4 bps compared to December 31, 2021, ~~that its Board~~driven by significant growth in risk-weighted assets, largely from loan growth, and return of ~~Directors authorized share repurchases of up to $200 million in 2021. Through September 30, 2021, Synovus has repurchased $167.1 million, or 3.7 million shares of its~~capital primarily through common stock ~~at an average price~~shareholder dividends, mostly offset by strong capital generation from earnings. Our commitment remains to allocate internally generated capital toward our strategic priorities of ~~$44.88 per share. Based on current conditions~~client loan growth and ~~economic outlook, we expect to complete the full authorization in the fourth quarter of 2021.~~

a stable dividend while also maintaining a strong and efficient capital position.

More detail on Synovus' financial results for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 may be found in subsequent sections of "Item 2. – Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Report. See also ~~"Item~~"Part 1 – Item 1A. – Risk Factors" of ~~this Report.~~Synovus' 2021 Form 10-K.

(1) ~~See "Table 14 - Reconciliation~~Core banking fees consist of ~~Non-GAAP Financial Measures” in this Report for applicable reconciliation to the most comparable GAAP measure.~~service charges on deposit accounts, card fees, and several other non-interest revenue components including letter of credit fees, ATM fee income, line of credit non-usage fees, gains (losses) from sales of SBA loans, and miscellaneous other service charges.

(2) Consists of fiduciary and asset management, brokerage, and insurance revenue.

Changes in Financial Condition

During the ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022, total assets increased ~~$1.11 billion~~$65.5 million to ~~$55.51~~$57.38 billion. We deployed ~~excess~~ liquidity as cash and cash equivalents decreased ~~$1.57 billion, investment securities available for sale increased $2.52~~$1.34 billion, and total loans increased ~~$88.0 million~~$1.89 billion, with ~~C&I growth offset~~commercial production and line utilization continuing to drive growth. Investment securities available for sale decreased $1.03 billion, driven by ~~PPP loan forgiveness, and elevated pay-offs~~net unrealized losses from increases in ~~consumer mortgages and HELOCs were more than offset by purchases~~market interest rates in the first half of ~~$1.49 billion in third-party lending loans.~~2022. The loan to deposit ratio was ~~80.4%~~84.0% at ~~September~~June 30, ~~2021, lower~~2022, higher as compared to ~~81.9%~~79.5% at December 31, ~~2020,~~2021, and ~~88.6%~~81.1% at ~~September~~June 30, ~~2020, primarily due to excess liquidity from various government stimulus efforts that have supported deposit growth while somewhat muting the demand for credit.~~2021.

Total shareholders' equity at ~~September~~June 30, ~~2021 increased $91.5~~2022 decreased $712.4 million compared to December 31, ~~2020~~2021 and included net income of ~~$560.1~~$349.1 million, ~~partially~~ offset by dividends declared on common and preferred stock of ~~$145.8~~$98.9 million and ~~$24.9~~$16.6 million, respectively, ~~net~~ changes in after-tax net unrealized losses inon investment securities available for sale and cash flow hedges of ~~$128.5~~$801.5 million and ~~$35.6~~$142.8 million, respectively, and share repurchases of ~~$167.1~~$13.0 million.

Loans

The following table compares the composition of the loan portfolio at ~~September~~June 30, ~~2021,~~2022, December 31, ~~2020,~~2021, and ~~September~~June 30, ~~2020.~~2021.


Table 2 - Loans by Portfolio Class	Table 2 - Loans by Portfolio Class																													Table 2 - Loans by Portfolio Class
										September 30, 2021 vs. December 31, 2020 Change																September 30, 2021 vs. September 30, 2020 Change																			June 31, 2022 vs. December 31, 2021 Change								June 31, 2022 vs. June 31, 2021 Change
(dollars in thousands)	(dollars in thousands)	September 30, 2021				December 31, 2020										September 30, 2020								(dollars in thousands)	June 30, 2022							December 31, 2021							June 30, 2021
Commercial, financial and agricultural	Commercial, financial and agricultural	$	11,771,037	30.7	%	$	12,410,152	32.4	%			$	(639,115)			(5)	%			$	12,931,095			32.7	%						$	(1,160,058)	(9)	%	Commercial, financial and agricultural	$	13,018,089			31.6		%		$		12,147,858	30.9	%	$	870,231	7	%	$	12,174,835	31.8	%	$	843,254	7	%
Owner-occupied	Owner-occupied	7,163,751		18.7		7,110,016		18.6		53,735				1				7,192,543				18.2				(28,792)		—		Owner-occupied	7,760,236		18.8				7,475,066				19.0				285,170		4		7,064,599		18.5		695,637		10
Total commercial and industrial	Total commercial and industrial	18,934,788		49.4		19,520,168		51.0		(585,380)				(3)				20,123,638				50.9				(1,188,850)		(6)		Total commercial and industrial	20,778,325		50.4				19,622,924				49.9				1,155,401		6		19,239,434		50.3		1,538,891		8
Investment properties	Investment properties	9,448,463		24.7		9,103,379		23.8		345,084				4				9,434,208				23.8				14,255		—		Investment properties	10,408,048		25.3				9,902,776				25.2				505,272		5		9,218,013		24.1		1,190,035		13
1-4 family properties	1-4 family properties	613,874		1.6		628,695		1.6		(14,821)				(2)				654,750				1.7				(40,876)		(6)		1-4 family properties	641,855		1.6				645,469				1.6				(3,614)		(1)		636,344		1.7		5,511		1
Land and development	Land and development	477,923		1.2		593,633		1.6		(115,710)				(19)				647,105				1.6				(169,182)		(26)		Land and development	453,514		1.0				466,866				1.2				(13,352)		(3)		506,694		1.3		(53,180)		(10)
Total commercial real estate	Total commercial real estate	10,540,260		27.5		10,325,707		27.0		214,553				2				10,736,063				27.1				(195,803)		(2)		Total commercial real estate	11,503,417		27.9				11,015,111				28.0				488,306		4		10,361,051		27.1		1,142,366		11
Consumer mortgages	Consumer mortgages	5,108,499		13.3		5,513,491		14.4		(404,992)				(7)				5,664,686				14.3				(556,187)		(10)		Consumer mortgages	5,124,523		12.4				5,068,998				12.9				55,525		1		5,200,718		13.6		(76,195)		(1)
Home equity lines		1,308,254		3.4		1,537,726		4.0		(229,472)				(15)				1,629,482				4.1				(321,228)		(20)
Home equity																														Home equity	1,579,218		3.9				1,361,419				3.5				217,799		16		1,395,717		3.7		183,501		13
Credit cards	Credit cards	293,026		0.8		281,018		0.7		12,008				4				264,829				0.7				28,197		11		Credit cards	194,290		0.5				204,172				0.5				(9,882)		(5)		196,207		0.5		(1,917)		(1)
Other consumer loans	Other consumer loans	2,156,203		5.6		1,074,874		2.9		1,081,329				101				1,131,149				2.9				1,025,054		91		Other consumer loans	2,025,007		4.9				2,039,334				5.2				(14,327)		(1)		1,842,891		4.8		182,116		10
Total consumer	Total consumer	8,865,982		23.1		8,407,109		22.0		458,873				5				8,690,146				22.0				175,836		2		Total consumer	8,923,038		21.7				8,673,923				22.1				249,115		3		8,635,533		22.6		287,505		3
Loans, net of deferred fees and costs	Loans, net of deferred fees and costs	$	38,341,030	100.0	%	$	38,252,984	100.0	%	$	88,046			—	%			$	39,549,847			100.0	%			$	(1,208,817)	(3)	%	Loans, net of deferred fees and costs	$	41,204,780	100.0	%			$	39,311,958			100.0		%		$	1,892,822	5	%	$	38,236,018	100.0	%	$	2,968,762	8	%

At ~~September~~June 30, ~~2021,~~2022, loans, net of deferred fees and costs, of ~~$38.34~~$41.20 billion, increased $1.89 billion, or 5%, from December 31, ~~2020. C&I loans declined but~~2021. This included a ~~$1.41 billion~~$312.9 million decline in PPP loans, primarily from forgiveness, ~~CRE increased,~~ and ~~consumer loans increased as well, led by other consumer~~ growth primarily ~~from purchases of third-party lending loans. Declines~~ in ~~consumer mortgages~~C&I and ~~HELOCs, which were primarily the continued~~CRE loans, as commercial production and line utilization continue to drive growth. As a result of excess consumer liquidity and accelerated prepayment activity, partially offset the growth in other consumer loans. While payoff activity remains a significant headwind, recent production, client conversations, and our ~~loan pipeline lead us to expect~~strong year-to-date loan growth of 6% excluding PPP loans, we expect to be inat or above the ~~lower half~~upper end of our ~~initial 2021~~previous guidance of ~~2%-4%, which excludes PPP and third-party lending loans.~~6% to 8% for 2022.

C&I loans remain the largest component of our loan portfolio, representing ~~49.4%~~50.4% of total loans, while CRE and consumer loans represent ~~27.5%~~27.9% and ~~23.1%~~21.7%, respectively. Our portfolio composition is ~~established through~~guided by our strategic growth plan, in conjunction with a comprehensive concentration management policy, which sets limits for C&I, CRE, and consumer loan levels as well as for sub-categories therein.

U.S. Small Business Administration Paycheck Protection Program (PPP)

Synovus ~~is participating~~participated in the PPP, which is a loan program that originated from the CARES ~~Act and was subsequently expanded by the Paycheck Protection Program and Health Care Enhancement Act, which was signed into law on April 24, 2020.~~Act. The total balance of all PPP loans was ~~$782.2~~$86.7 million as of ~~September~~June 30, ~~2021,~~2022, down $312.9 million, or 78%, compared to ~~$2.19 billion~~$399.6 million as of December 31, ~~2020.~~ 2021, primarily due to $316 million in forgiveness.The table below provides additional information on PPP loans.


Table 3 - PPP loans													Table 3 - PPP loans
		September 30, 2021												June 30, 2022
		Applications			Loan Balances									PPP Loan Balances
(in millions, except count data )	(in millions, except count data )	Approximate Count	Balance		Fundings		3Q21 Forgiveness		Total Life-to-Date Forgiveness		End of Period, Net of Unearned Fees and Costs(1)		(in millions, except count data )	Fundings		2Q22 Forgiveness		2022 Forgiveness		Total Life-to-Date Forgiveness		End of Period, Net of Unearned Fees and Costs(1)
Phase 1- 2020 Originations	Phase 1- 2020 Originations	19,000	$	2,958	$	2,886	$	544	$	2,676	$	105	Phase 1- 2020 Originations	$	2,886	$	11	$	26	$	2,750	$	14
Phase 2- 2021 Originations	Phase 2- 2021 Originations	11,000	1,135		1,047		295		341		677		Phase 2- 2021 Originations	1,047		108		290		971		73
Total	Total	30,000	$	4,093	$	3,933	$	839	$	3,017	$	782	Total	$	3,933	$	119	$	316	$	3,721	$	87

(1) Equals fundings less forgiveness, pay-downs/pay-offs, and unearned net fees.


(dollars in millions)	(dollars in millions)	Total Net Fees		Percent of Fundings		3Q21 Recognized Net Fees		Total Recognized Net Fees		Total Unrecognized or Remaining Net Fees		Contractual Maturity	(dollars in millions)	Total Net Fees		Percent of Fundings		2Q22 Recognized Net Fees		2022 Recognized Net Fees		Total Recognized Net Fees		Total Unrecognized or Remaining Net Fees		Contractual Maturity
Phase 1- 2020 Originations	Phase 1- 2020 Originations	$	94.9	3.3	%	$	7.9	$	94.3	$	0.6	2 years	Phase 1- 2020 Originations	$	94.9	3.3	%	$	0.1	$	0.3	$	94.9	$	—	2 years
Phase 2- 2021 Originations	Phase 2- 2021 Originations	43.6		4.2		13.4		18.2		25.4		5 years	Phase 2- 2021 Originations	43.6		4.2		3.6		10.3		40.9		2.8		5 years
Total	Total	$	138.5	3.5	%	$	21.3	$	112.5	$	26.0		Total	$	138.5	3.5	%	$	3.7	$	10.5	$	135.8	$	2.8

Amounts may not total due to rounding.													Amounts may not total due to rounding.

Commercial Loans

Total commercial loans (which are comprised of C&I and CRE loans) at ~~September~~June 30, ~~2021~~2022 were ~~$29.48~~$32.28 billion, or ~~76.9%~~78.3%, of the total loan portfolio, compared to ~~$29.85~~$30.64 billion, or ~~78.0%~~77.9%, at December 31, ~~2020.~~2021.

Commercial and Industrial Loans

The C&I loan portfolio represents the largest category of Synovus' loan portfolio and is primarily comprised of general middle market and commercial banking clients across a wide range of industries. The following table shows the composition of the C&I loan portfolio aggregated by NAICS code. In accordance with Synovus' lending policy, each loan undergoes a detailed underwriting process which incorporates uniform underwriting standards and oversight in proportion to the size and complexity of the lending relationship. As of ~~September~~June 30, ~~2021, 90.7% (94.6%~~2022, 93.4% (93.8% excluding PPP loans) of Synovus' C&I loans are secured by real estate, business equipment, inventory, and other types of collateral compared to ~~83.2% (93.8%~~ 92.2% (94.1%excluding PPP loans) as of December 31, ~~2020.~~2021. C&I loans at ~~September~~June 30, ~~2021 decreased~~2022 grew $1.16 billion, or 6%, from December 31, ~~2020, primarily due to~~2021, as diverse growth from many of our Wholesale Banking sub-businesses was partially offset by a $312.9 million decline in PPP ~~forgiveness. Excluding PPP loans, C&I loans grew $825.6 million, propelled by~~loan balances. The growth largely consisted of funded loan production and increased ~~funded commercial loan production,~~line utilization particularly in the finance and insurance, ~~and health care~~healthcare and social assistance, wholesale trade, and accommodation and food services industries.


Table 3 - Commercial and Industrial Loans by Industry
Table 4 - Commercial and Industrial Loans by Industry										Table 4 - Commercial and Industrial Loans by Industry
		September 30, 2021				December 31, 2020						June 30, 2022				December 31, 2021
(dollars in thousands)	(dollars in thousands)	Amount		%(1)		Amount		%(1)		(dollars in thousands)	NAICS Code	Amount		%(1)		Amount		%(1)
Health care and social assistance	Health care and social assistance	$	3,960,864	20.9	%	$	3,878,450	19.9	%	Health care and social assistance	62	$	4,489,914	21.6	%	$	4,220,579	21.5	%
Finance and insurance	Finance and insurance	2,174,226		11.5		1,680,094		8.6		Finance and insurance	52	3,112,695		15.0		2,520,480		12.8
Manufacturing										Manufacturing	31-33	1,377,435		6.6		1,314,212		6.7
Accommodation and food services										Accommodation and food services	72	1,338,556		6.4		1,231,801		6.3
Wholesale trade										Wholesale trade	42	1,268,075		6.1		1,146,505		5.8
Retail trade	Retail trade	1,207,224		6.4		1,279,813		6.6		Retail trade	44-45	1,184,962		5.7		1,195,456		6.1
Accommodation and food services		1,182,462		6.2		1,213,524		6.2
Manufacturing		1,170,113		6.2		1,243,290		6.4
Wholesale trade		1,153,011		6.1		1,236,137		6.3
Real estate and rental and leasing	Real estate and rental and leasing	1,108,166		5.9		1,134,023		5.8		Real estate and rental and leasing	5311	1,086,787		5.2		1,061,921		5.4
Other services		1,014,838		5.4		1,144,023		5.9
Construction	Construction	1,000,458		5.3		1,065,633		5.5		Construction	23	1,063,753		5.1		1,023,540		5.2
Professional, scientific, and technical services	Professional, scientific, and technical services	953,872		5.0		1,144,939		5.9		Professional, scientific, and technical services	54	951,794		4.6		928,436		4.7
Other services										Other services	81	946,549		4.6		1,004,448		5.1
Transportation and warehousing	Transportation and warehousing	838,127		4.4		843,294		4.3		Transportation and warehousing	48-49	843,764		4.1		852,969		4.3
Real estate other	Real estate other	714,158		3.8		723,241		3.7		Real estate other	53	778,636		3.7		752,997		3.8
Arts, entertainment, and recreation	Arts, entertainment, and recreation	564,276		3.0		779,282		4.0		Arts, entertainment, and recreation	71	469,665		2.3		534,597		2.7
Educational services	Educational services	430,652		2.3		398,949		2.0		Educational services	61	422,306		2.0		427,456		2.2
Public Administration		406,093		2.1		432,519		2.2
Public administration										Public administration	92	417,871		2.0		407,451		2.1
Administration, support, waste management, and remediation										Administration, support, waste management, and remediation	56	263,754		1.3		246,638		1.3
Agriculture, forestry, fishing, and hunting	Agriculture, forestry, fishing, and hunting	306,096		1.6		385,337		2.0		Agriculture, forestry, fishing, and hunting	11	261,234		1.3		285,372		1.5
Administration, support, waste management, and remediation		257,444		1.4		352,812		1.8
Information										Information	51	211,917		1.0		189,306		1.0
Other industries	Other industries	251,938		1.2		296,487		1.4		Other industries	(2)	288,658		1.4		278,760		1.5
Information		240,770		1.3		288,321		1.5
Total commercial and industrial loans	Total commercial and industrial loans	$	18,934,788	100.0	%	$	19,520,168	100.0	%	Total commercial and industrial loans		$	20,778,325	100.0	%	$	19,622,924	100.0	%

(1) Loan balance in each category expressed as a percentage of total C&I loans.

(2) Comprised of NAICS industries that are less than 2% of total C&I loans.

At ~~September~~June 30, ~~2021, $11.77~~2022, $13.02 billion of C&I loans, or ~~30.7%~~31.6% of the total loan portfolio (including PPP loans of $86.7 million net of unearned fees and costs), represented loans originated for the purpose of financing commercial, financial and agricultural business activities. The primary source of repayment on these loans is revenue generated from products or services offered by the business or organization. The secondary source of repayment is the collateral, which consists primarily of equipment, inventory, accounts receivable, time deposits, cash surrender value of life insurance, and other business assets.

At ~~September~~June 30, ~~2021, $7.16~~2022, $7.76 billion of C&I loans, or ~~18.7%~~18.8% of the total loan portfolio, represented loans originated for the purpose of financing owner-occupied properties. The financing of owner-occupied facilities is considered a C&I loan even though there is improved real estate as collateral. This treatment is a result of the credit decision process, which focuses on cash flow from operations of the business to repay the debt. The secondary source of repayment on these loans is the underlying real estate. These loans are predominately secured by owner-occupied and other real estate, and to a lesser extent, other types of collateral.

Commercial Real Estate Loans

CRE loans consist primarily of income-producing investment properties loans. Additionally, CRE loans include 1-4 family properties loans as well as land and development loans. Total CRE loans of ~~$10.54~~$11.50 billion increased $488.3 million or 4%, from December 31, ~~2020~~2021 as ~~higher~~growth primarily in the multi-family and medical office sectors from funded loan production ~~drove the growth but was partially offset by elevated pay-off~~continued to outpace payoff activity.

Investment properties loans consist of construction and mortgage loans for income-producing properties and are primarily made to finance multi-family properties, hotels, office buildings, shopping centers, warehouses and other commercial development properties. Total investment properties loans as of ~~September~~June 30, ~~2021~~2022 were ~~$9.45~~$10.41 billion, or ~~89.6%~~90.5% of the CRE loan portfolio, and increased $505.3 million, or 5%, from December 31, ~~2020,~~2021 primarily due to growth in all sub-categories with ~~increases in~~ the ~~other investment property and office buildings sub-categories, partially offset by a decline in~~exception of shopping centers, ~~and warehouses.~~which were down $196.6 million, or 12%, from December 31, 2021.

1-4 Family Properties Loans

1-4 family properties loans include construction loans to home builders and commercial mortgage loans related to 1-4 family rental properties and are almost always secured by the underlying property being financed by such loans. These

properties are primarily located in the markets served by Synovus. At ~~September~~June 30, ~~2021,~~2022, 1-4 family properties loans totaled ~~$613.9~~$641.9 million, or ~~5.8%~~5.6% of the CRE loan portfolio, and decreased slightly from December 31, ~~2020.~~

2021.

Land and Development Loans

Land and development loans include commercial and residential development as well as land acquisition loans and are secured by land held for future development, typically in excess of one year. Properties securing these loans are substantially within markets served by Synovus, and loan terms generally include personal guarantees from the principals. Loans in this portfolio are underwritten based on the LTV of the collateral and the capacity of the guarantor(s). Land and development loans of ~~$477.9~~$453.5 million at ~~September~~June 30, ~~2021 continued to decline~~2022 decreased slightly from December 31, ~~2020.~~2021.

Consumer Loans

The consumer loan portfolio consists of a wide variety of loan products offered through Synovus' banking network including first and second residential mortgages, ~~HELOCs,~~home equity and consumer credit card loans, as well as both secured and unsecured loans from third-party lending. As of ~~September~~June 30, ~~2021,~~2022, weighted-average FICO scores within the residential real estate portfolio based on committed balances were ~~776~~777 for consumer mortgages and ~~791~~788 for ~~HELOCs.~~home equity, consistent with year-end 2021 scores.

Consumer loans at ~~September~~June 30, ~~2021~~2022 of ~~$8.87~~$8.92 billion increased compared to December 31, 2020. Consumer mortgages and HELOCs both decreased from December 31, 2020 as these reductions continue to result primarily from accelerated prepayment activity and excess consumer liquidity. Credit card loans of $293.0$249.1 million, at September 30, 2021 increased slightly from $281.0 million at December 31, 2020. Other consumer loans, which primarily includes third-party lending, increased from December 31, 2020, and as of September 30, 2021, third-party lending balances totaled $1.72 billion, or ~~4.5%, of the total loan portfolio, and increased $1.04 billion, or 154%~~3%, compared to December 31, ~~2020, led by~~2021. Home equity grew $217.8 million from December 31, 2021 largely due to increased demand for home equity products as property values have increased, and interest rates for home equity products have remained relatively low. Other consumer loans decreased $14.3 million from December 31, 2021 primarily resulting from $43.0 million lower third-party loan balances as payment activity more than offset purchases of $1.49 billion of third-party lending loans, partially offset by payment activity. Growth in this portfolio is predicated on overall balance sheet dynamics including capital, liquidity, and client loan growth.$361.6 million.

Deposits

Deposits provide the most significant funding source for interest earning assets. The following table shows the composition of period-end deposits as of the dates indicated. See Table 1112 - ~~Average Balances~~Quarter-to-Date Net Interest Income and ~~Yields/Rates~~Rate/Volume Analysis and Table 13 - Year-to-Date Net Interest Income and Rate/Volume Analysis in this Report for information on average deposits including average rates.


Table 4 - Composition of Period-end Deposits
Table 5 - Composition of Period-end Deposits														Table 5 - Composition of Period-end Deposits
(dollars in thousands)	(dollars in thousands)	September 30, 2021		%(1)		December 31, 2020		%(1)		September 30, 2020		%(1)		(dollars in thousands)	June 30, 2022		%(1)		December 31, 2021		%(1)		June 30, 2021		%(1)
Non-interest-bearing demand deposits(2)	Non-interest-bearing demand deposits(2)	$	14,832,942	31.1	%	$	12,382,708	26.5	%	$	12,129,777	27.2	%	Non-interest-bearing demand deposits(2)	$	15,781,109	32.2	%	$	15,242,839	30.9	%	$	14,342,601	30.4	%
Interest-bearing demand deposits(2)	Interest-bearing demand deposits(2)	6,055,984		12.7		5,674,416		12.2		5,291,135		11.8		Interest-bearing demand deposits(2)	6,327,055		12.9		6,346,959		12.9		5,839,814		12.4
Money market accounts(2)	Money market accounts(2)	14,267,443		29.9		13,541,236		29.0		12,441,340		27.8		Money market accounts(2)	13,793,024		28.1		14,886,424		30.1		13,983,112		29.7
Savings deposits(2)	Savings deposits(2)	1,380,419		2.9		1,156,249		2.5		1,125,985		2.5		Savings deposits(2)	1,498,727		3.0		1,404,428		2.8		1,341,453		2.8
Public funds	Public funds	5,791,586		12.2		6,760,628		14.5		5,791,944		13.0		Public funds	5,863,899		12.0		6,284,553		12.7		5,804,905		12.3
Time deposits(2)	Time deposits(2)	2,579,344		5.4		3,605,928		7.7		3,976,464		8.9		Time deposits(2)	2,147,769		4.4		2,427,073		4.9		2,891,115		6.1
Brokered deposits	Brokered deposits	2,780,701		5.8		3,570,406		7.6		3,909,259		8.8		Brokered deposits	3,623,117		7.4		2,835,000		5.7		2,968,962		6.3
Total deposits	Total deposits	$	47,688,419	100.0	%	$	46,691,571	100.0	%	$	44,665,904	100.0	%	Total deposits	$	49,034,700	100.0	%	$	49,427,276	100.0	%	$	47,171,962	100.0	%
Core deposits(3)	Core deposits(3)	$	44,907,718	94.2	%	$	43,121,165	92.4	%	$	40,756,645	91.2	%	Core deposits(3)	$	45,411,583	92.6	%	$	46,592,276	94.3	%	$	44,203,000	93.7	%
Core transaction deposits(4)		$	36,536,788	76.6	%	$	32,754,609	70.2	%	$	30,988,237	69.4	%

Time deposits greater than $100,000, including brokered and public funds		$	3,252,537	6.8	%	$	4,748,029	10.2	%	$	5,478,221	12.3	%
Brokered time deposits	Brokered time deposits	$	951,868	2.0	%	$	1,590,096	3.4	%	$	1,996,133	4.5	%	Brokered time deposits	$	2,314,488	4.7	%	$	1,024,448	2.1	%	$	1,063,947	2.3	%
Public funds time deposits														Public funds time deposits	$	611,070	1.2	%	$	665,954	1.3	%	$	689,478	1.5	%

(1) Deposits balance in each category expressed as percentage of total deposits.

(2) Excluding any public funds or brokered deposits.

(3) Core deposits exclude brokered deposits.

~~(4)~~ ~~Core transaction deposits consist of non-interest-bearing demand deposits, interest-bearing demand deposits, money market accounts, and savings deposits excluding public funds and brokered deposits.~~

Total period-end deposits at ~~September~~June 30, ~~2021 increased $996.8~~2022 decreased $392.6 million ~~or 2%,~~ compared to December 31, ~~2020. Core transaction~~2021 as lower money market, public funds, and time deposits, ~~increased $3.78 billion, or 12%, compared to December 31, 2020.~~impacted by rate-driven outflows and normal client liquidity deployment, were mostly offset by increases in brokered deposits and higher non-interest-bearing demand deposits. On a year-to-date average basis, the increase in total deposits was ~~$4.06~~$1.57 billion, or 9%3%, ~~compared~~driven by $1.33 billion in growth from non-interest-bearing demand deposits as this meaningful component of our overall funding strategy continues to ~~December 31, 2020. The increases~~help manage our total funding costs in ~~deposit balances on both a period-end and average basis compared to December 31, 2020 are due largely to government stimulus programs including deposits associated with~~ the ~~second phase of PPP loans.~~rising rate environment. Total deposit costs of 1315 bps ~~during~~for the ~~third~~second quarter of ~~2021 declined 3 bps on a linked quarter basis and have steadily declined over~~2022 decreased 1 bp from the ~~past 5 quarters as shown in Table 11 - Average Balances and Yields/Rates in this Report~~prior year comparable period, primarily due to ~~repricing~~an increase in non-interest-bearing deposits. Total deposit costs increased 4 bps compared to the first quarter of 2022 as the Federal Open Market Committee's recent rate hikes have begun to modestly impact our deposit costs. Given the 75 bps rate hike in June 2022, as well as the recently announced 75 bps hike in July 2022, we have begun to see and ~~intentional, strategic remixing to reduce higher cost deposits.~~

expect a continuation of upward pressure on deposits costs, as would be reasonably expected for this phase of the tightening cycle.

Non-interest Revenue

Non-interest revenue for the ~~third~~second quarter of ~~2021~~2022 was ~~$115.0~~$97.3 million, ~~up $544 thousand,~~down $9.8 million, or 9%, and year-to-date was ~~$333.0~~$202.6 million, down ~~$58.8 million, or 15%, compared to the same periods in 2020. Gains on sales of investment securities of $76.6 million impacted the nine months ended September 30, 2020. Adjusted non-interest revenue(1)~~ for the third quarter of 2021 was $114.1 million, down $815 thousand, or 1%, from the third quarter of 2020 primarily due to lower mortgage banking income partially offset by higher core banking fees, brokerage revenue, fiduciary and asset management fees, and capital markets income. Year-to-date adjusted non-interest revenue~~(1)~~ ~~was $332.2 million, up $22.3~~$15.4 million, or 7%, compared to the same ~~period~~periods in ~~2020 largely due to higher core banking fees, fiduciary and asset management fees, and brokerage revenue partially offset by~~2021. The primary drivers were lower mortgage banking income and ~~capital markets income. In the fourth quarter of 2021, we expect adjusted non-interest revenue to decline as broad-based growth is more than~~a $7.0 million write-down on a minority fintech investment partially offset by ~~continued normalization of mortgage~~higher core banking ~~income, seasonality of our brokerage business,~~fees(1) and ~~third quarter 2021 gains that are not expected to repeat.~~

~~(1)~~ higher wealth revenue~~See "Table 14 - Reconciliation of Non-GAAP Financial Measures” in this Report for applicable reconciliation to GAAP measures.~~(2).

The following table shows the principal components of non-interest revenue.


Table 5 - Non-interest Revenue
Table 6 - Non-interest Revenue																		Table 6 - Non-interest Revenue
		Three Months Ended September 30,								Nine Months Ended September 30,									Three Months Ended June 30,								Six Months Ended June 30,
(dollars in thousands)	(dollars in thousands)	2021		2020		$ Change		% Change		2021		2020		$ Change		% Change		(dollars in thousands)	2022		2021		$ Change		% Change		2022		2021		$ Change		% Change
Service charges on deposit accounts ~~(1)~~	Service charges on deposit accounts ~~(1)~~	$	22,641	$	17,813	$	4,828	27	%	$	64,089	$	54,069	$	10,020	19	%	Service charges on deposit accounts ~~(1)~~	$	23,491	$	21,414	$	2,077	10	%	$	46,030	$	41,448	$	4,582	11	%
Fiduciary and asset management fees	Fiduciary and asset management fees	19,786		15,885		3,901		25		56,545		46,009		10,536		23		Fiduciary and asset management fees	20,100		18,805		1,295		7		40,377		36,759		3,618		10
Card fees ~~(1)~~	Card fees ~~(1)~~	13,238		10,823		2,415		22		38,538		30,959		7,579		24		Card fees ~~(1)~~	16,089		13,304		2,785		21		30,846		25,300		5,546		22
Brokerage revenue	Brokerage revenue	14,745		10,604		4,141		39		41,644		32,987		8,657		26		Brokerage revenue	15,243		13,926		1,317		9		29,898		26,899		2,999		11
Mortgage banking income	Mortgage banking income	11,155		31,229		(20,074)		(64)		47,312		66,987		(19,675)		(29)		Mortgage banking income	3,904		13,842		(9,938)		(72)		9,857		36,157		(26,300)		(73)
Capital markets income	Capital markets income	8,089		5,690		2,399		42		18,929		22,984		(4,055)		(18)		Capital markets income	7,393		3,335		4,058		122		12,864		10,840		2,024		19
Income from bank-owned life insurance	Income from bank-owned life insurance	6,820		7,778		(958)		(12)		22,851		21,572		1,279		6		Income from bank-owned life insurance	9,165		7,188		1,977		28		15,722		16,031		(309)		(2)
Insurance revenue																		Insurance revenue	2,564		3,383		(819)		(24)		3,983		5,079		(1,096)		(22)
Investment securities gains (losses), net	Investment securities gains (losses), net	962		(1,550)		2,512		nm		(1,028)		76,594		(77,622)		nm		Investment securities gains (losses), net	—		—		—		nm		—		(1,990)		1,990		nm
Other non-interest revenue(1)		17,519		16,139		1,380		9		44,117		39,591		4,526		11
Other non-interest revenue																		Other non-interest revenue	(683)		11,890		(12,573)		(106)		13,023		21,520		(8,497)		(39)
Total non-interest revenue	Total non-interest revenue	$	114,955	$	114,411	$	544	—	%	$	332,997	$	391,752	$	(58,755)	(15)	%	Total non-interest revenue	$	97,266	$	107,087	$	(9,821)	(9)	%	$	202,600	$	218,043	$	(15,443)	(7)	%

Core banking fees (1)	Core banking fees (1)	$	44,345	$	34,338	$	10,007	29	%	$	123,964	$	100,917	$	23,047	23	%	Core banking fees (1)	$	45,483	$	41,464	$	4,019	10	%	$	90,887	$	79,620	$	11,267	14	%
Wealth revenue (2)																		Wealth revenue (2)	$	37,907	$	36,114	$	1,793	5	%	$	74,258	$	68,737	$	5,521	8	%

(1) ~~Service~~Core banking fees consist of service charges on deposit accounts, card fees, and several other non-interest revenue components including letter of credit fees, ATM ~~fees~~fee income, line of credit non-usage fees, gains (losses) from sales of ~~government guaranteed~~SBA loans, and miscellaneous other service charges.

(2) Consists of fiduciary and asset management, brokerage, and insurance revenue.

Three and ~~Nine~~Six Months Ended ~~September~~June 30, ~~2021~~2022 compared to ~~September~~June 30, ~~2020~~2021

Service charges on deposit accounts, consisting of ~~NSF~~account analysis fees, ~~account analysis~~NSF fees, and all other service charges, for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 were up ~~due largely~~compared to ~~higher~~the same periods in 2021. The largest category of service charges, account analysis fees, ~~which~~ were up ~~$2.6 million, or 35%, and $8.0 million, or 38%, respectively, following our pricing for value Synovus Forward initiative implemented during~~flat compared to the ~~first~~second quarter of ~~2021.~~2021, and up 3% on a year-to-date comparable basis. NSF fees for the ~~nine~~six months ended ~~September~~June 30, 2022 and 2021 comprised 32% and ~~2020 comprised 30% and 36%~~29%, respectively, of service charges on deposit accounts and 6%7% and 5%6%, respectively, of total non-interest revenue. AllNSF fees for the three and six months ended June 30, 2021 were lower primarily due to fiscal stimulus funds. All other service charges on deposit accounts, which consist primarily of monthly fees on ~~retail~~consumer demand deposits ~~saving accounts,~~ and small business accounts, for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022 were up ~~$1.0 million~~,$740 thousand, or ~~22%~~14%, and ~~$2.2~~$1.4 million,, or ~~16%~~14%, respectively.

Fiduciary and asset management fees are derived from providing estate administration, personal trust, corporate trust, corporate bond, investment management, financial planning, and family office services. The increase in fiduciary and asset management fees for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 was driven by ~~growth~~strong client acquisition despite headwinds from a decline in ~~total assets under management which increased by 21% from September 30, 2020 to $21.23 billion at September 30, 2021.~~the equity markets.

Card fees consist primarily of credit card interchange fees, debit card interchange fees, and merchant discounts. Card fees are reported net of certain associated expense items including client loyalty program expenses and network expenses. Card fees for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 were up ~~with increased~~primarily due to higher transaction ~~volume~~volumes from both consumer and commercial spend activity and account growth as we continue to invest in ~~all card fee categories.~~our Treasury and Payment solutions business.

Brokerage revenue consists primarily of brokerage commissions as well as advisory fees earned from the management of client assets. Brokerage revenue for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 increased over the prior year comparable periods, ~~and~~benefiting from client activity in the face of challenging equity markets.

Mortgage banking income was ~~driven by growth~~significantly lower for the three and six months ended June 30, 2022, compared to the same periods in ~~assets under management~~2021, largely due to the economic environment with substantial increases in mortgage rates reducing refinancing and ~~higher transaction revenue from favorable market conditions.~~

~~Mortgage banking income was significantly lower for the third quarter~~new-purchase volumes and compressing secondary margins. On a year-to-date basis, gains on sale declined $18.5 million as a result of ~~2021~~a $550.9 million, or 55%, decrease in loan sales and a $574.1 million, or 58%, decline in secondary market mortgage production compared to the three months ended September 30, 2020 with the decline driven by lower gains on sale and lower secondary production. The year-to-date decline was largely a result of lower secondary revenue in addition to lower secondary production. Total secondary market mortgage loan production was $343.0 million, down $310.8 million, or 48%, and $1.34 billion, down $205.4 million, or 13%, for the three and nine months ended September 30, 2021, respectively.prior year.

Capital markets income primarily includes fee income from client derivative transactions. Additionally, capital markets income includes fee income from debt capital ~~raising investment banking~~market transactions and foreign exchange as well as other miscellaneous income from capital market transactions. The increase for the three months ended ~~September~~June 30, 2022 compared to the same period in 2021 primarily resulted from ~~$1.4~~a higher volume of client derivative transactions and a $1.3 million ~~higher~~increase in loan syndication arranger ~~fees and $0.9 million higher fees on client derivative transactions.~~fees. The ~~decrease~~increase for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 was primarily ~~a result of a $6.1 million decrease in fees on client derivative transactions as commercial client activity~~due to ~~lock in lower rates was elevated in 2020, partially offset by a $1.6 million increase in~~higher loan syndication arranger fees.

Income from BOLI includes increases in the cash surrender value of policies and proceeds from insurance ~~benefits.~~contracts. The ~~decrease~~increase for the three months ended ~~September~~June 30, ~~2021~~2022 primarily related to ~~$557 thousand~~$2.5 million in proceeds from insurance ~~benefits in the third quarter of 2020 while the year-to-date increase was driven by a $1.3 million increase in proceeds from insurance~~ benefits.

Investment securities losses, net, of $1.0 million for the nine months ended September 30, 2021 reflected strategic sales of mortgage-backed securities. Investment securities gains, net, of $76.6 million for the nine months ended September 30, 2020 reflected strategic repositioning of the portfolio primarily during the latter part of the second quarter of 2020 to respond to the impact of market rate declines.

The main components of other non-interest revenue are fees for letters of credit and unused lines of credit, safe deposit box fees, access fees for ATM use, other service charges and loan servicing fees, ~~income from insurance commissions,~~ gains from sales of GGL/SBA loans, and other miscellaneous items. The ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 primarily included ~~increases~~a $7.0 million write-down on a minority fintech investment and a reduction in ~~income~~the fair value of non-qualified deferred compensation plan assets of $6.5 million (offset in non-interest expense), partially offset by a gain of $3.5 million related to ~~investments in LIHTC and solar energy tax credit partnerships~~the sale of ~~$2.7 million and $2.0 million, respectively,~~ a ~~$2.5 million increase in other service charges primarily from higher unused line of credit fees, and a $2.0 million increase in insurance revenue~~certain real estate partnership, as compared to 2020. The nine months ended September 30, 2020 included $4.5 million in realized gains from the sale of positions in two publicly-traded equity investments, a sale-leaseback gain of $2.4 million, and a gain of $2.5 million from the sale of non-relationship mortgage loans.2021.

Non-interest Expense

Non-interest expense for the ~~third~~second quarter of ~~2021~~2022 was ~~$267.0~~$282.1 million, ~~down $49.6~~up $11.5 million, or ~~16%~~4%, and year-to-date was ~~down $72.4~~$554.5 million, up $16.8 million, or 8%3%, compared to the same periods in ~~2020. Goodwill impairment expense of $44.9 million impacted the three and nine months ended September 30, 2020. Adjusted non-interest expenseof $267.1 million was down $893 thousand, and year-to-date was down $14.7 million, or 2%.~~2021. The ~~decline~~increase in ~~adjusted~~ non-interest expense during ~~2021~~2022 was primarily due to ~~2020 being impacted by higher~~an increase in expense associated with ~~Synovus Forward as well as a 5% reduction~~merit and elevated performance incentives, resumption of normal business activities post COVID-19, and investments in ~~headcount year-over-year, which primarily came from back-office support functions and offset other personnel expense increases. The adjusted tangible efficiency ratio for~~new growth initiatives. We expect total investments in new growth initiatives to be in the ~~first nine months of 2021 was 53.82%, down 231 bps compared~~$30 million to ~~the same period a year ago. We remain committed to prudent expense management, enabling us to continue investing~~$35 million range in areas that position us for greater success, deliver a superior client experience, and promote profitable growth. See "Table 14 - Reconciliation of Non-GAAP Financial Measures” in this Report for applicable reconciliation to GAAP measures.2022.

The following table summarizes the components of non-interest expense.


Table 6 - Non-interest Expense
Table 7 - Non-interest Expense																		Table 7 - Non-interest Expense
		Three Months Ended September 30,								Nine Months Ended September 30,									Three Months Ended June 30,								Six Months Ended June 30,
(dollars in thousands)	(dollars in thousands)	2021		2020		$ Change		% Change		2021		2020		$ Change		% Change		(dollars in thousands)	2022		2021		$ Change		% Change		2022		2021		$ Change		% Change
Salaries and other personnel expense	Salaries and other personnel expense	$	160,364	$	154,994	$	5,370	3	%	$	482,408	$	464,268	$	18,140	4	%	Salaries and other personnel expense	$	161,063	$	160,567	$	496	—	%	$	325,747	$	322,044	$	3,703	1	%
Net occupancy, equipment, and software expense	Net occupancy, equipment, and software expense	43,483		41,554		1,929		5		126,442		125,475		967		1		Net occupancy, equipment, and software expense	43,199		41,825		1,374		3		86,076		82,959		3,117		4
Third-party processing and other services	Third-party processing and other services	19,446		21,827		(2,381)		(11)		63,897		67,193		(3,296)		(5)		Third-party processing and other services	21,952		24,419		(2,467)		(10)		42,947		44,451		(1,504)		(3)
Professional fees	Professional fees	6,739		13,377		(6,638)		(50)		23,771		39,358		(15,587)		(40)		Professional fees	10,865		7,947		2,918		37		19,338		17,031		2,307		14
FDIC insurance and other regulatory fees	FDIC insurance and other regulatory fees	5,212		6,793		(1,581)		(23)		16,338		18,922		(2,584)		(14)		FDIC insurance and other regulatory fees	6,894		5,547		1,347		24		13,144		11,127		2,017		18
Goodwill impairment		—		44,877		(44,877)		nm		—		44,877		(44,877)		nm
Earnout liability adjustments		(243)		—		(243)		nm		507		4,908		(4,401)		nm
Amortization of intangibles	Amortization of intangibles	2,379		2,640		(261)		(10)		7,137		7,920		(783)		(10)		Amortization of intangibles	2,118		2,379		(261)		(11)		4,236		4,758		(522)		(11)
Restructuring charges	Restructuring charges	319		2,882		(2,563)		nm		1,265		8,924		(7,659)		nm		Restructuring charges	(1,850)		415		(2,265)		nm		(8,274)		946		(9,220)		nm
Valuation adjustment to Visa derivative																		Valuation adjustment to Visa derivative	3,500		—		3,500		nm		3,500		—		3,500		nm
Loss on early extinguishment of debt	Loss on early extinguishment of debt	—		154		(154)		nm		—		2,057		(2,057)		nm		Loss on early extinguishment of debt	—		—		—		nm		677		—		677		nm
Other operating expenses		29,333		27,557		1,776		6		82,932		93,174		(10,242)		(11)
Earnout liability adjustments																		Earnout liability adjustments	—		750		(750)		nm		—		750		(750)		nm
Other operating expense																		Other operating expense	34,310		26,682		7,628		29		67,110		53,599		13,511		25
Total non-interest expense	Total non-interest expense	$	267,032	$	316,655	$	(49,623)	(16)	%	$	804,697	$	877,076	$	(72,379)	(8)	%	Total non-interest expense	$	282,051	$	270,531	$	11,520	4	%	$	554,501	$	537,665	$	16,836	3	%

Three and ~~Nine~~Six Months Ended ~~September~~June 30, ~~2021~~2022 compared to ~~September~~June 30, ~~2020~~2021

Salaries and other personnel expense increased for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021 with the increase for the three months ended September 30, 2021 being mostly~~2022 primarily due to ~~an increase in incentive compensation~~the impacts of elevated performance incentives and ~~bonus accruals due to higher than expected performance, higher employee insurance from increased claims, and higher temporary help,~~merit partially offset by a reduction in the fair value of the non-qualified deferred compensation liability (offset in non-interest revenue) and lower salary expense. The increase for the nine months ended September 30, 2021 was due primarily to higher share-based compensation expense largely due to timing with a higher level of retirement eligible expense acceleration, an increase in bonus accruals due to higher than expected performance, higher employee insurance from increased claims, and higher temporary help, partially offset by lower salary expense.mortgage production-based commissions. Total headcount of ~~5,059 declined 288, or 5%, from September~~5,091 was flat compared to June 30, ~~2020, led by Synovus' voluntary early retirement program offered during the fourth quarter~~2021 as a result of ~~2020 and branch closures.~~Synovus Forward initiatives while adding headcount in areas associated with strategic revenue growth.

Net occupancy, equipment, and software expense increased ~~on a quarter-over-quarter basis~~for the three and ~~comparatively year-to-date~~six months ended June 30, 2022 due primarily to continued investments in technology and initiatives partially offset by savings from branch closures. Synovus Bank operated 261 branches at June 30, 2022 compared to 285 branches at June 30, 2021 with twenty branch closures during the first half of 2022. We expect to close a similar amount in the second half of 2022 to complete our large-scale branch optimization program.

Third-party processing and other services include all third-party core operating system and processing charges as well as third-party loan servicing charges. Third-party processing expense decreased for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021. The quarter-over-quarter decrease was~~2022, largely a result of ~~lower information-technology related~~higher 2021 expense and Synovus' restructure of certain of its third-party consumer-based lending partnership arrangements during the second quarter of 2020 with a shift of new originations to held for sale. The decline for the nine months ended September 30, 2021 was primarily associated with the aforementioned restructure of certain of its third-party consumer-based lending partnership arrangements and lower information-technology related expense partially offset by expenses associated with PPP loan ~~forgiveness.~~forgiveness partially offset by enhancements associated with technology and initiatives.

Professional fees ~~decreased~~increased for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 primarily from ~~decreases in~~higher consulting fees largely related to ~~Synovus Forward.~~new initiatives, technology, and sustainability strategies and increased legal fees from various matters, including new initiatives and credit-related items.

FDIC insurance and other regulatory fees ~~decreased~~increased for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021, reflecting lower~~2022 largely due to a higher assessment rate primarily ~~due to overall elevated~~driven by partial normalization of liquidity levels and ~~subordinated debt issued by~~redemption of Synovus Bank ~~in the fourth quarter of 2020.~~senior notes.

During the three months ended ~~September~~June 30, ~~2020,~~2022, Synovus ~~recognized a $44.9~~recorded $3.0 million ~~non-cash goodwill impairment charge representing~~in gains on sales of five closed branches partially offset by restructuring charges associated with additional branch closures. During the ~~goodwill allocated~~six months ended June 30, 2022, Synovus recorded $12.1 million in gains largely relating to the ~~Consumer Mortgage reporting unit resulting from~~sale of real estate facilities in Columbus, Georgia in addition to gains on sales of closed branches, partially offset by restructuring charges associated with additional branch closures. During the three and six months ended June 30, 2021, Synovus recorded restructuring charges primarily related to branch closures and restructuring of corporate real estate as part of the Synovus Forward initiative.

During the second quarter of 2022, Synovus recorded a ~~combination~~$3.5 million valuation adjustment to the Visa derivative following Visa's announcement to fund $600 million to its litigation escrow account.

On February 10, 2022, Synovus Bank redeemed its 2.289% Fixed-to-Floating Rate Senior Bank Notes of ~~factors, including the extended duration~~$400 million par value and incurred a $677 thousand loss on early extinguishment of ~~lower market valuations, high volumes in refinance activity that have reduced mortgage yields, and the clarity around longer term policy actions designed to keep interest rates low.~~debt.

Earnout liability fair value adjustments ~~in 2020~~ associated with the Global One acquisition were the result of higher than projected earnings and higher earnings estimates over the remaining contractual earnout period, reflecting the continued success of the Global One enterprise. The earnout period ended on June 30, 2021, and the final earnout payment occurred during the ~~three months ended September 30, 2021.~~

During the three and nine months ended September 30, 2021 and 2020, Synovus recorded restructuring charges related to branch closures and restructuring of corporate real estate as part of the Synovus Forward initiative. Twelve branches were closed in 2020, and four branches have been closed year-to-date in 2021, in addition to 4 additional branches expected to close during the fourththird quarter of 2021.

Other operating ~~expenses~~expense includes advertising, travel, insurance, network and communication, other taxes, subscriptions and dues, other loan and ORE expense, postage and freight, training, business development, supplies, donations, and other miscellaneous ~~expenses.~~expense. Other operating ~~expenses~~expense was up for the three and six months ended June 30, 2022. The increases over prior year were upprimarily related to an increase in loan expense due to elevated production, managing fraud protection for clients, resumption of normal business activities post COVID-19, and increased 2022 advertising expense resulting from the launch of our newly developed brand positioning and campaign.

Income Tax Expense

Income tax expense was $49.9 million for the three months ended ~~September~~June 30, ~~2021 and were down for the nine months ended September 30, 2021. Period over period fluctuations are primarily related~~2022, representing an effective tax rate of 21.9%, compared to certain expenses or losses not expected to recur rather than changes in trends. Other operating expenses for the nine months ended September 30, 2020 also included a $2.7 million valuation adjustment on a MPS receivable and a $2.5 million charge from termination of client swaps.

~~Income Tax Expense~~

~~Income~~income tax expense ~~was $159.9~~of $56.8 million for the ~~nine~~three months ended ~~September~~June 30, 2021, representing an effective tax rate of ~~22.2%~~23.4%. Income tax expense was $92.6 million for the six months ended June 30, 2022, representing an effective tax rate of 21.0%, compared to income tax expense of ~~$74.3~~$106.0 million for the ~~nine~~six months ended ~~September~~June 30, ~~2020,~~2021, representing an effective tax rate of ~~25.0%~~22.1%. The effective tax rate is lower for both the ~~nine months~~three and six month periods ended ~~September~~June 30, ~~2021 includes~~2022, primarily due to an increase in net discrete tax benefits ~~of $3.3 million related to~~recognized during the current period, including share-based compensation, changes in amounts taxable by jurisdictions, and ~~$2.6 million related to share-based compensation, partially offset by discrete expense of $3.8 million related to~~ other accrual ~~adjustments.~~The effective tax rate for the nine months ended September 30, 2020 reflected the impact of a non-deductible goodwill impairment charge recognized during the third quarter of 2020, partially offset by discrete benefits of $2.7 million for the carryback of net operating loss deductions as permitted by the CARES Act, and $2.3 million of other discrete benefit items, including items related to prior periods.

~~Synovus’ effective tax rate considers many factors including, but not limited~~adjustments, compared to the level of pre-tax income, BOLI, tax-exempt interest, certain income tax credits, and nondeductible expenses. In addition, the effective tax rate is affected by items that may occur in any given period but are not consistent from period-to-period, such as tax benefits related to share-based compensation, jurisdiction statutory tax rate changes, valuation allowance changes, and changes to unrecognized tax benefits. Accordingly, the comparability of the effective tax rate between periods may be impacted.

Over the course of the past year, the Biden Administration has publicly discussed numerous potential changes to the tax code to fund its Build Back Better agenda, including changes in corporate taxation. We continue to monitor the legislative process and the potential impact to the Company and its clients.respective prior periods.

CREDIT QUALITY, CAPITAL RESOURCES AND LIQUIDITY

Credit Quality

Synovus ~~continuously~~diligently monitors the quality of its loan portfolio by industry, property type, and geography ~~as well as credit quality metrics.~~through a thorough portfolio review process and our analytical risk management tools. At ~~September~~June 30, ~~2021,~~2022, credit metrics remained stable and near historical lows with NPAs at 4533 bps, NPLs at 4126 bps, and total past dues at 1614 bps, as a percentage of total loans. Net charge-offs remained low at ~~$20.5~~$16.6 million, or 2216 bps annualized, and ~~$67.3~~$35.2 million, or 2418 bps annualized, respectively, for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021, respectively.~~2022. We expect net charge-offs to remain relatively stable in the ~~fourth quarter~~second half of ~~2021,~~2022, assuming no material change in the economic environment.

The table below includes selected credit quality metrics.


Table 7 - Credit Quality Metrics
Table 8 - Credit Quality Metrics											Table 8 - Credit Quality Metrics
(dollars in thousands)	(dollars in thousands)	September 30, 2021			December 31, 2020			September 30, 2020			(dollars in thousands)	June 30, 2022			December 31, 2021			June 30, 2021
Non-performing loans	Non-performing loans	$	155,465		$	151,079		$	168,837		Non-performing loans	$	109,024		$	131,042		$	161,028
Impaired loans held for sale		—			23,590			—
ORE and other assets	ORE and other assets	16,883			17,394			23,280			ORE and other assets	26,759			27,137			16,806
Non-performing assets	Non-performing assets	$	172,348		$	192,063		$	192,117		Non-performing assets	$	135,783		$	158,179		$	177,834
Total loans	Total loans	$	38,341,030		$	38,252,984		$	39,549,847		Total loans	$	41,204,780		$	39,311,958		$	38,236,018
Non-performing loans as a % of total loans	Non-performing loans as a % of total loans	0.41		%	0.39		%	0.43		%	Non-performing loans as a % of total loans	0.26		%	0.33		%	0.42		%
Non-performing assets as a % of total loans, ORE, and specific other assets	Non-performing assets as a % of total loans, ORE, and specific other assets	0.45			0.50			0.49			Non-performing assets as a % of total loans, ORE, and specific other assets	0.33			0.40			0.46
Loans 90 days past due and still accruing	Loans 90 days past due and still accruing	$	5,960		$	4,117		$	7,512		Loans 90 days past due and still accruing	$	2,251		$	6,770		$	4,415
As a % of total loans	As a % of total loans	0.02		%	0.01		%	0.02		%	As a % of total loans	0.01		%	0.02		%	0.01		%
Total past due loans and still accruing	Total past due loans and still accruing	$	60,817		$	47,349		$	57,316		Total past due loans and still accruing	$	56,160		$	57,565		$	49,321
As a % of total loans	As a % of total loans	0.16		%	0.12		%	0.14		%	As a % of total loans	0.14		%	0.15		%	0.13		%
Net charge-offs, quarter	Net charge-offs, quarter	$	20,516		$	22,139		$	28,466		Net charge-offs, quarter	$	16,565		$	10.522		$	26,546
Net charge-offs/average loans, quarter	Net charge-offs/average loans, quarter	0.22		%	0.23		%	0.29		%	Net charge-offs/average loans, quarter	0.16		%	0.11		%	0.28		%

Net charge-offs, year-to-date	Net charge-offs, year-to-date	$	67,266		$	94,712		$	72,573		Net charge-offs, year-to-date	$	35,174		$	77,788		$	46,750
Net charge-offs/average loans, year-to-date	Net charge-offs/average loans, year-to-date	0.24		%	0.24		%	0.25		%	Net charge-offs/average loans, year-to-date	0.18		%	0.20		%	0.24		%
(Reversal of) provision for loan losses, quarter		$	(3,949)		$	24,075		$	43,618
(Reversal of) provision for unfunded commitments, quarter		(3,919)			(13,009)			(235)
(Reversal of) provision for credit losses, quarter		$	(7,868)		$	11,066		$	43,383
(Reversal of) provision for loan losses, year-to-date		(46,227)			336,052			311,977
(Reversal of) provision for unfunded commitments, year-to-date		(4,814)			18,970			31,979
(Reversal of) provision for credit losses, year-to-date		(51,041)			355,022			343,956
Provision for (reversal of) loan losses, quarter											Provision for (reversal of) loan losses, quarter	$	9,446		$	(54,124)		$	(19,960)
Provision for (reversal of) unfunded commitments, quarter											Provision for (reversal of) unfunded commitments, quarter	3,242			(1,086)			(4,638)
Provision for (reversal of) credit losses, quarter											Provision for (reversal of) credit losses, quarter	$	12,688		$	(55,210)		$	(24,598)

Provision for (reversal of) loan losses, year-to-date											Provision for (reversal of) loan losses, year-to-date	$	15,414		$	(100,351)		$	(42,278)
Provision for (reversal of) unfunded commitments, year-to-date											Provision for (reversal of) unfunded commitments, year-to-date	$	8,674		$	(5,900)		$	(895)
Provision for (reversal of) credit losses, year-to-date											Provision for (reversal of) credit losses, year-to-date	$	24,088		$	(106,251)		$	(43.173)
Allowance for loan losses	Allowance for loan losses	$	492,243		$	605,736		$	603,800		Allowance for loan losses	$	407,837		$	427,597		$	516,708
Reserve for unfunded commitments	Reserve for unfunded commitments	42,971			47,785			60,794			Reserve for unfunded commitments	50,559			41,885			46,890
Allowance for credit losses	Allowance for credit losses	$	535,214		$	653,521		$	664,594		Allowance for credit losses	$	458,396		$	469,482		$	563,598
ACL to loans coverage ratio	ACL to loans coverage ratio	1.40		%	1.71		%	1.68		%	ACL to loans coverage ratio	1.11		%	1.19		%	1.47		%
ALL to loans coverage ratio	ALL to loans coverage ratio	1.28			1.58			1.53			ALL to loans coverage ratio	0.99			1.09			1.35
ACL/NPLs	ACL/NPLs	344.27			432.57			393.63			ACL/NPLs	420.45			358.27			350.00
ALL/NPLs	ALL/NPLs	316.63			400.94			357.62			ALL/NPLs	374.08			326.31			320.88

Criticized and Classified Loans

Our loan ratings are aligned to federal banking regulators' definitions of pass and criticized categories, which include special mention, substandard, doubtful, and loss. Substandard accruing and non-accruing loans, doubtful, and loss loans are often collectively referred to as classified. Special mention, substandard, doubtful, and loss loans are often collectively referred to as criticized and classified loans. The following table presents a summary of criticized and classified loans. Criticized and classified loans at ~~September~~June 30, ~~2021 declined $345.2~~2022 were2.2% of total loans, or $914.0 million, ~~or 22%,~~down $113.9 million as compared to 2.6% of total loans, or $1.03 billion, at December 31, 2020 primarily as a result of upgrades in the hotel industry. Further reductions are anticipated as we progress through the remainder of 2021 as we expect continued improvement in financial performance in the hotel industry and other industries negatively impacted by COVID-19.2021.


Table 9 - Criticized and Classified Loans
(dollars in thousands)	June 30, 2022			December 31, 2021
Special mention	$	391,596		$	489,150
Substandard	516,412			526,117
Doubtful	3,520			10,630
Loss	2,500			2,058
Criticized and Classified loans	$	914,028		$	1,027,955
As a % of total loans	2.2		%	2.6		%

Table 8 - Criticized and Classified Loans
(dollars in thousands) September 30, 2021 December 31, 2020
Special mention $ 616,911 $ 977,028
Substandard 580,444 553,720
Doubtful 22,283 33,204
Loss 2,186 3,032
Criticized and Classified loans $ 1,221,824 $ 1,566,984
As a % of total loans 3.2 % 4.1 %

~~Reversal of~~ Provision for (Reversal of) Credit Losses and Allowance for Credit Losses

~~Reversal of~~The provision for credit losses of ~~$7.9~~$12.7 million and ~~$51.0~~$24.1 million for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022 included net charge-offs of $16.6 million and $35.2 million, respectively, ~~primarily resulted from the continued improvement in the credit outlook~~and also represented a slower pace of allowance decline for the ~~portfolio. This was partially offset by $10.0~~first half of the year. $3.7 million and ~~$35.8~~$7.5 million in reserves were also added as a result of purchases of ~~$453.3~~$180.2 million and ~~$1.49 billion~~$361.6 million of third-party lending loans ~~including $271.6 million and $1.05 billion in prime auto purchases~~ for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021, respectively, as well as net growth in loans.~~2022.

The ~~ACL, consisting of an~~ ALL of ~~$492.2~~$407.8 million and the reserve for unfunded commitments of ~~$43.0~~$50.6 million, ~~totaled $535.2~~which is recorded in other liabilities, comprise the total ACL of $458.4 million at ~~September~~June 30, ~~2021 and declined $118.3~~2022. The ACL decreased $11.1 million ~~from~~compared to the December 31, ~~2020, resulting in~~2021 ACL of $469.5 million, which consisted of an ALL of $427.6 million and the reserve for unfunded commitments of $41.9 million. The ACL to loans coverage ratio of ~~1.40% and an ACL~~1.11% at June 30, 2022 was 8 bps lower compared to ~~NPLs ratio of 344%. Excluding PPP loans,~~December 31, 2021. The reduction in the ACL ~~to loans coverage ratio was 1.42%.The ACL at September 30, 2021 incorporates~~resulted primarily from continued positive trends in our credit performance, including reduction of NPLs, and quality and mix of new loan originations, mostly offset by an ~~outlook of continuation of the recovery including the unemployment rate at 4.6% by the end of 2021, compared to 4.5% used in the second quarter of 2021’s ACL estimate.~~uncertain and generally negative economic outlook.


Table 9 - Accruing TDRs by Risk Grade
Table 10 - Accruing TDRs by Risk Grade														Table 10 - Accruing TDRs by Risk Grade
		September 30, 2021				December 31, 2020				September 30, 2020					June 30, 2022				December 31, 2021				June 30, 2021
(dollars in thousands)	(dollars in thousands)	Amount		%		Amount		%		Amount		%		(dollars in thousands)	Amount		%		Amount		%		Amount		%
Pass	Pass	$	61,604	48.8	%	$	72,463	53.7	%	$	69,433	42.5	%	Pass	$	59,865	36.5	%	$	56,479	47.1	%	$	62,686	50.3	%
Special mention	Special mention	12,310		9.8		8,935		6.6		13,303		8.1		Special mention	31,492		19.2		11,387		9.5		8,600		6.9
Substandard accruing	Substandard accruing	52,141		41.4		53,574		39.7		80,775		49.4		Substandard accruing	72,744		44.3		51,938		43.4		53,242		42.8
Total accruing TDRs	Total accruing TDRs	$	126,055	100.0	%	$	134,972	100.0	%	$	163,511	100.0	%	Total accruing TDRs	$	164,101	100.0	%	$	119,804	100.0	%	$	124,528	100.0	%

Troubled Debt Restructurings

Accruing TDRs were ~~$126.1~~$164.1 million at ~~September~~June 30, ~~2021,~~2022, up $44.3 million compared to ~~$135.0~~December 31, 2021 primarily due to interest rate modifications granted that were previously accounted for under the CARES Act. Non-accruing TDRs were $18.3 million at June 30, 2022, compared to $22.3 million at December 31, ~~2020. Non-accruing TDRs were $21.9 million at September 30, 2021, compared to $39.0 million at December 31, 2020.~~2021.

Accruing TDRs are considered performing because they are performing in accordance ~~with~~with the re~~structured~~restructured terms. At ~~September~~both June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, approximately 98% ~~and99%, respectively,~~ of accruing TDRs were current. In addition, subsequent defaults on accruing TDRs (defaults defined as the earlier of the TDR being placed on non-accrual status or reaching 90 days past due with respect to principal and/or interest payments within twelve months of the TDR designation) have continued to remain at low levels.

~~Non-TDR Modifications due to COVID-19~~

Regulatory agencies have encouraged financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations because of COVID-19. In the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (initially issued on March 22, 2020 and revised on April 7, 2020), for example, the regulatory agencies expressed their view of loan modification programs as positive actions that may mitigate adverse effects on borrowers due to COVID-19 and their unwillingness to criticize institutions for working with borrowers in a safe and sound manner. Moreover, the Interagency Statement provided that eligible loan modifications related to COVID-19 may be accounted for under section 4013 of the CARES Act or in accordance with ASC 310-40. On December 27, 2020, the Consolidated Appropriations Act, 2021 extended the applicable period of Section 4013 of the CARES Act. This allows banks to elect to not consider loan modifications related to COVID-19 that are made between March 1, 2020 and the earlier of January 1, 2022, or 60 days after the national emergency ends to borrowers that are current (i.e., less than 30 days past due as of December 31, 2019) as TDRs. The regulatory agencies further stated that performing loans granted payment deferrals due to COVID-19 are not considered past due or non-accrual. FASB confirmed the foregoing regulatory agencies' view that such short-term modifications (e.g., six months) made on a good-faith basis in response to COVID-19 for borrowers who are current are not TDRs.

During 2020, Synovus provided relief programs consisting primarily of 90-day payment deferral relief to borrowers negatively impacted by COVID-19, and as of September 30, 2021, no loans were in a P&I deferral status as compared to 0.3% of the total loan portfolio at December 31, 2020.In addition to our P&I deferment program, under the CARES Act, we have also provided borrowers who have been impacted by COVID-19 with other modifications such as interest-only relief or amortization extensions on approximately 2% of total loans, at both September 30, 2021 and December 31, 2020.

Capital Resources

Synovus and Synovus Bank are required to comply with capital adequacy standards established by our primary federal regulator, the Federal Reserve. Synovus and Synovus Bank measure capital adequacy using the standardized approach under Basel III. At ~~September~~June 30, ~~2021,~~2022, Synovus and Synovus Bank's capital levels remained strong and exceeded well-capitalized requirements currently in effect. The following table presents certain ratios used to measure Synovus and Synovus Bank's capitalization.

Table 10 - Capital Ratios
(dollars in thousands) September 30, 2021 December 31, 2020
CET1 capital
Synovus Financial Corp. $ 4,276,765 $ 4,034,865
Synovus Bank 4,905,396 4,641,711
Tier 1 risk-based capital
Synovus Financial Corp. 4,813,910 4,572,010
Synovus Bank 4,905,396 4,641,711
Total risk-based capital
Synovus Financial Corp. 5,765,528 5,604,230
Synovus Bank 5,544,573 5,361,611
CET1 capital ratio
Synovus Financial Corp. 9.58 % 9.66 %
Synovus Bank 11.01 11.11
Tier 1 risk-based capital ratio
Synovus Financial Corp. 10.79 10.95
Synovus Bank 11.01 11.11
Total risk-based capital to risk-weighted assets ratio
Synovus Financial Corp. 12.92 13.42
Synovus Bank 12.44 12.83
Leverage ratio
Synovus Financial Corp. 8.78 8.50
Synovus Bank 8.95 8.73
Tangible common equity ratio(1)
Synovus Financial Corp. 7.68 7.66

~~(1)~~

~~See "Table 14 - Reconciliation of Non-GAAP Financial Measures” in this Report for the applicable reconciliation to the most comparable GAAP measure.~~


Table 11 - Capital Ratios
(dollars in thousands)	June 30, 2022			December 31, 2021
CET1 capital
Synovus Financial Corp.	$	4,612,070		$	4,388,618
Synovus Bank	5,158,225			4,998,698
Tier 1 risk-based capital
Synovus Financial Corp.	5,149,215			4,925,763
Synovus Bank	5,158,225			4,998,698
Total risk-based capital
Synovus Financial Corp.	6,059,074			5,827,196
Synovus Bank	5,754,389			5,587,757
CET1 capital ratio
Synovus Financial Corp.	9.46		%	9.50		%
Synovus Bank	10.59			10.83
Tier 1 risk-based capital ratio
Synovus Financial Corp.	10.56			10.66
Synovus Bank	10.59			10.83
Total risk-based capital to risk-weighted assets ratio
Synovus Financial Corp.	12.43			12.61
Synovus Bank	11.82			12.11
Leverage ratio
Synovus Financial Corp.	9.03			8.72
Synovus Bank	9.06			8.86

At ~~September~~June 30, ~~2021,~~2022, Synovus' CET1 ratio was ~~9.58%~~9.46%, well in excess of regulatory requirements including the capital conservation buffer of 2.5%. The ~~September~~June 30, ~~2021~~2022 CET1 ratio declined 84 bps compared to December 31, ~~2020,~~2021, driven by significant growth in risk-weighted assets, largely from loan growth, and return of capital primarily through ~~share repurchases and~~ common stock shareholder dividends, ~~which was~~mostly offset by strong capital generation from earnings. Our commitment remains to allocate internally generated capital toward our strategic priorities of client loan growth and a ~~result of~~stable dividend while also maintaining a strong ~~financial performance.~~and efficient capital position. For additional information on regulatory capital requirements, see "Part II - Item 8. Financial Statements and Supplementary Data - Note 1210 - Regulatory Capital" to the consolidated financial statements of Synovus' ~~2020~~2021 Form 10-K. Management reviews the Company's capital position on an on-going basis and believes, based on internal capital analyses and earnings projections, that Synovus is well positioned to meet relevant regulatory capital standards.

On January 20, 2022, Synovus announced ~~on January 26, 2021~~ that its Board of Directors authorized share repurchases of up to ~~$200~~$300 million in ~~2021.~~2022. During the ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022, Synovus repurchased a total of ~~$167.1~~$13.0 million, or ~~3.7 million~~281 thousand shares of its common stock, at an average price of ~~$44.88~~$46.17 per share.

~~As of October 31, 2021, the remaining authorization under this program was $31.8 million.~~ Based on our current ~~conditions~~forecast for loan growth and given the uncertain economic ~~outlook,~~environment, we expect to ~~complete~~retain the ~~full authorization in~~majority of capital generated through earnings to support core balance sheet growth through the ~~fourth quarter~~remainder of ~~2021.~~

2022.

On August 26, 2020, the federal banking regulators issued a final rule (following an interim final rule issued on March 27, 2020) that allowed electing banking organizations that adopt CECL during 2020 to mitigate the estimated effects of CECL on regulatory capital for two years, followed by a three-year phase-in transition period. Synovus adopted CECL on January 1, 2020 and the ~~September~~June 30, ~~2021~~2022 regulatory capital ratios reflect Synovus' election of the five-year transition provision. At ~~September~~June 30, ~~2021, $69.9~~2022, $43.7 million, or a cumulative 169 bps benefit to CET1, was deferred.

Dividends

Synovus has historically paid a quarterly cash dividend to the holders of its common stock. Management and the Board of Directors closely monitor current and projected capital levels, liquidity (including dividends from subsidiaries), financial markets and other economic trends, as well as regulatory requirements regarding the payment of dividends.

Synovus' ability to pay dividends on its common stock and preferred stock is primarily dependent upon dividends and distributions that it receives from its bank and non-banking subsidiaries, which are restricted by various regulations administered by federal and state bank regulatory authorities.

Synovus declared common stock dividends of ~~$145.8~~$98.9 million, or ~~$0.99~~$0.68 per common share, ~~during~~for the ~~nine~~six months ended ~~September~~June 30, ~~2021 and 2020.~~2022, compared to $97.7 million, or $0.66 per common share, for the six months ended June 30, 2021. In addition, Synovus declared dividends on its preferred stock of ~~$24.9~~$16.6 million during both the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020.~~2021.

Liquidity

Liquidity represents the extent to which Synovus has readily available sources of funding to meet the needs of depositors, borrowers and creditors, to support asset growth, and to otherwise sustain operations of Synovus and its subsidiaries, at a reasonable cost, on a timely basis, and without adverse consequences. ALCO monitors Synovus' economic, competitive, and regulatory environment and is responsible for measuring, monitoring, and reporting on liquidity and funding risk as well as market risk.

In accordance with Synovus policies and regulatory guidance, ALCO evaluates contractual and anticipated cash flows under normal and stressed conditions to properly manage the Company’s liquidity profile. Synovus places an emphasis on maintaining numerous sources of current and contingent liquidity to meet its obligations to depositors, borrowers, and creditors on a timely basis. Liquidity is generated through various sources, including, but not limited to, maturities and repayments of loans by clients, maturities and sales of investment securities, and growth in core orand wholesale deposits. ~~Management continuously monitors and maintains appropriate levels of liquidity so as to provide adequate funding sources to manage client deposit withdrawals, loan requests, and other funding demands.~~

Synovus Bank also generates liquidity through the issuance of brokered certificates of deposit and money market accounts. Synovus Bank accesses these funds from a broad geographic base to diversify its sources of funding and liquidity. Synovus Bank also has the capacity to access funding through its membership in the FHLB system and through the Federal Reserve discount window. At ~~September~~June 30, ~~2021,~~2022, based on currently pledged collateral, Synovus Bank had access to ~~incremental~~ FHLB funding of ~~$6.20~~$4.73 billion, subject to FHLB credit policies. Management continuously monitors and maintains appropriate levels of liquidity so as to provide adequate funding sources to manage client deposit withdrawals, loan requests, and other funding demands.

In addition to bank level liquidity management, Synovus must manage liquidity at the parent company level for various operating needs including the servicing of debt, the payment of dividends on our common stock and preferred stock, share repurchases, payment of general corporate ~~expenses~~expense, and potential capital infusions into subsidiaries. The primary source of liquidity for Synovus consists of dividends from Synovus Bank, which is governed by certain rules and regulations of the GA DBF and the Federal Reserve Bank. Synovus' ability to receive dividends from Synovus Bank in future periods will depend on a number of factors, including, ~~but not limited to,~~without limitation, Synovus Bank's future profits, asset quality, liquidity, and overall condition. In addition, both the GA DBF and Federal Reserve Bank may require approval to pay dividends, based on certain regulatory statutes and limitations.

Synovus presently believes that the sources of liquidity discussed above, including existing liquid funds on hand, are sufficient to meet its anticipated funding needs. However, if economic conditions were to significantly deteriorate, regulatory capital requirements for Synovus or Synovus Bank were to increase as the result of regulatory directives or otherwise, or Synovus believes it is prudent to enhance current liquidity levels, then Synovus may seek additional liquidity from external sources. See "Part I – Item 1A. Risk Factors - Changes in the cost and availability of funding due to changes in the deposit market and credit market may adversely affect our capital resources, liquidity and financial results" of Synovus' ~~2020~~2021 Form 10-K. Furthermore, Synovus may, from time to time, take advantage of attractive market opportunities to refinance its existing debt, redeem its preferred stock, or strengthen its liquidity or capital position.

Earning Assets and Sources of Funds

Average total assets for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 increased ~~$3.28~~$2.09 billion, or 6%4%, ~~to $54.85 billion~~ as compared to ~~$51.57 billion for~~ the first ~~nine~~six months of ~~2020.~~2021. Average earning assets increased ~~$3.28~~$2.66 billion, or 7%5%, in the first

~~nine~~ six months of ~~2021~~2022 compared to the same period in ~~2020.~~2021. The increase in average earning assets primarily resulted from a ~~$2.33~~$2.39 billion, or ~~34%~~27%, increase in average investment securities available for sale and a ~~$1.75~~$1.62 billion, or ~~163%~~4%, increase in average total loans, net of unearned income, which included a decrease of $1.98 billion in PPP loans. The increase in average loans was primarily attributable to growth in commercial production and line utilization. These increases were partially offset by a $1.36 billion, or 51%, decrease in average interest-bearing funds held at the Federal Reserve ~~Bank, and a $472.6 million increase in loans held for sale, partially offset by a $1.09 billion, or 3%, decrease in average total loans, net of unearned.~~Bank.

Average interest-bearing liabilities decreased ~~$493.8~~$24.2 million ~~or 1%, to $33.62 billion~~ for the first ~~nine~~six months of ~~2021~~2022 compared to the same period in ~~2020.~~2021. The decrease in average interest-bearing liabilities largely resulted from a ~~$3.38~~$1.05 billion, or ~~40%~~27%, decrease in average time deposits, as a ~~$1.38 billion, or 53%, decrease in average long-term debt, and a $658.1 million decrease in other short-term borrowings. These decreases were~~result of continued focus on remixing the deposit base, mostly offset by a ~~$3.26 billion,~~$945.2 million, or ~~23%, increase in average money market deposits and a $1.38 billion, or 19%~~11%, increase in average interest-bearing demand deposits. Average non-interest-bearing deposits also increased ~~$3.51~~$2.28 billion, or ~~31%~~16%, ~~to $14.89 billion~~ for the first ~~nine~~six months of ~~2021~~2022 compared to the same period in ~~2020, due largely~~2021 as these deposits continue to ~~liquidity associated with various government stimulus efforts.~~be a meaningful component of our funding strategy and will help manage total funding costs in the rising rate environment.

Net interest income for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 was ~~$1.14 billion,~~$817.6 million, up ~~$13.8~~$61.9 million, or 8% compared to the same period in ~~2020,~~2021, including ~~$66.5~~$10.5 million in PPP fees during ~~2021~~2022 and ~~$21.1~~$45.2 million in ~~2020.~~2021. Net interest margin was ~~down 18~~up 8 bps over the comparable ~~nine~~six-month period to ~~3.02%,~~3.11% due primarily to ~~the~~positive re-mixing within earning assets and our asset-

sensitive rate risk position, partially offset by a $34.7 million decline in ~~market interest rates and average growth in investment securities available for sale and interest-bearing funds held at the Federal Reserve Bank.~~PPP fees. For the ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022, the yield on earning assets was ~~3.27%~~3.31%, ~~a decrease~~an increase of 612 bps compared to the ~~nine~~six months ended ~~September~~June 30, ~~2020,~~2021, while the effective cost of funds decreased 436 bps to ~~0.25%~~0.20%. ~~The~~Compared to the same period in 2021, the yield on loans decreased 2313 bps ~~to 3.97%,~~ due primarily to the decline in ~~market interest rates,~~PPP fees, while the yield on investment securities ~~decreased 129~~increased 32 bps primarily due to ~~1.43%, due primarily to an acceleration~~higher reinvestment yield and deceleration in ~~prepayments and increase in premium amortization,~~prepayment activity compared to the ~~nine months ended September 30, 2020.~~prior year.

On a sequential quarter basis, net interest income was up ~~$3.1~~$33.1 million, or 1%8%, ~~primarily due to continued asset~~driven by loan growth ~~further declines in deposit costs,~~ and a higher ~~day count.~~rates. Net interest margin for the ~~third~~second quarter was ~~stable at 3.01%~~3.22%, which was ~~down 1 bp~~up 22 bps compared to the first quarter of 2022 aided by higher interest rates, lower cash balances, and managed deposit repricing. The second quarter of ~~2021 with continued pressure from the liquidity environment. The third quarter of 2021~~2022 included ~~$21.3~~$3.7 million recognized for associated PPP fees versus ~~$20.4~~$6.9 million in the ~~second~~first quarter of ~~2021~~2022 and average PPP loan balances of ~~$1.19 billion~~$147.9 million versus ~~$2.14 billion~~$282.4 million in the first quarter of 2022. For the second quarter of ~~2021. For the third quarter of 2021,~~2022, the yield on earning assets ~~decreased 4~~increased 25 bps, while the effective cost of funds ~~decreased~~increased 3 bps compared to the ~~second~~first quarter of ~~2021.~~

2022. We continue to expect that net interest income ~~excluding PPP fees~~and net interest margin will increase infrom second quarter 2022 levels as the ~~remainder~~benefits of ~~the year, driven by loan growth~~higher short-term and ~~deployment of liquidity, which~~long-term market interest rates are ~~expected to offset headwinds from continued fixed-rate repricing and the slight reduction in LIBOR. PPP fees are also expected to decline.~~

54realized.

~~Quarterly yields earned on average interest-earning assets and rates paid on average interest-bearing liabilities for the five most recent quarters are presented below.~~

Table 11 - Average Balances and Yields/Rates 2021 2020
(dollars in thousands) (yields and rates annualized) Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter
Interest Earning Assets:
Investment securities(1)(2)
$ 9,876,651 9,184,691 8,437,563 7,493,822 7,227,400
Yield 1.45 % 1.45 1.40 2.07 2.39
Trading account assets(3)
$ 5,192 2,831 3,063 8,496 5,391
Yield 1.15 % 1.15 2.81 1.03 1.69
Commercial loans(2)(4)
$ 28,891,164 29,849,029 29,844,491 30,363,102 30,730,135
Yield 3.91 % 3.86 3.95 3.96 3.80
Consumer loans(4)
$ 8,642,969 8,647,448 8,367,776 8,521,449 9,032,437
Yield 3.93 % 3.94 3.98 4.00 4.08
Allowance for loan losses $ (514,828) (561,242) (599,872) (595,547) (591,098)
Loans, net(4)
$ 37,019,305 37,935,235 37,612,395 38,289,004 39,171,474
Yield 3.97 % 3.93 4.02 4.03 3.92
Mortgage loans held for sale $ 196,032 242,940 246,962 309,278 244,952
Yield 2.88 % 3.06 2.68 2.74 2.92
Other loans held for sale $ 527,736 615,301 660,753 544,301 493,940
Yield 3.06 % 3.05 2.91 2.81 3.61
Other earning assets(5)
$ 3,271,501 2,705,819 2,838,063 2,716,645 1,265,880
Yield 0.15 % 0.11 0.10 0.10 0.11
Federal Home Loan Bank and Federal Reserve Bank Stock(3)
$ 159,741 159,340 157,657 162,537 200,923
Yield 1.26 % 2.01 1.69 2.64 2.73
Total interest earning assets $ 51,056,158 50,846,157 49,956,456 49,524,083 48,609,960
Yield 3.22 % 3.26 3.32 3.49 3.58
Interest-Bearing Liabilities:
Interest-bearing demand deposits $ 8,463,325 8,601,262 8,570,753 8,531,415 7,789,095
Rate 0.10 % 0.11 0.14 0.16 0.19
Money market accounts, excluding brokered deposits $ 15,597,723 15,476,262 15,348,916 14,411,860 13,272,972
Rate 0.15 % 0.19 0.23 0.26 0.36
Savings deposits $ 1,377,089 1,333,297 1,219,288 1,147,667 1,114,956
Rate 0.02 % 0.02 0.02 0.01 0.02
Time deposits under $100,000 $ 993,284 1,077,931 1,161,306 1,239,592 1,379,923
Rate 0.33 % 0.41 0.56 0.74 1.03
Time deposits over $100,000 $ 2,430,744 2,714,451 2,993,996 3,302,959 3,863,821
Rate 0.45 % 0.56 0.74 1.03 1.44
Other brokered deposits $ 1,862,346 1,901,097 1,950,582 1,978,393 1,912,114
Rate 0.21 % 0.19 0.20 0.23 0.23
Brokered time deposits $ 996,777 1,156,510 1,418,751 1,795,982 2,232,940
Rate 1.27 % 1.35 1.50 1.60 1.59
Total interest-bearing deposits $ 31,721,288 32,260,810 32,663,592 32,407,868 31,565,821
Rate 0.20 % 0.24 0.31 0.39 0.54
Federal funds purchased and securities sold under repurchase agreements $ 202,525 204,053 209,448 174,316 180,342
Rate 0.07 % 0.07 0.07 0.07 0.09
Other short-term borrowings $ — — — — 46,739
Rate — % — — — 1.12
Long-term debt $ 1,203,500 1,203,038 1,202,613 1,552,791 2,234,665
Rate 3.81 % 3.82 3.63 3.96 2.71
Total interest-bearing liabilities $ 33,127,313 33,667,901 34,075,653 34,134,975 34,027,567
Rate 0.33 % 0.36 0.42 0.55 0.68
Non-interest-bearing demand deposits $ 15,755,929 15,088,836 13,791,286 13,566,112 12,773,676
Cost of funds 0.22 % 0.25 0.30 0.40 0.50
Effective cost of funds(6)
0.21 % 0.24 0.28 0.37 0.48
Net interest margin 3.01 % 3.02 3.04 3.12 3.10
Taxable equivalent adjustment(2)
$ 736 791 774 821 956

~~`(1)~~ ~~Excludes net unrealized gains (losses).~~

~~(2)~~ ~~Reflects taxable-equivalent adjustments, using the statutory federal income tax rate of 21%, in adjusting interest on tax-exempt loans and investment securities to a taxable-equivalent basis.~~

~~(3)~~ ~~Included as a component of other assets on the consolidated balance sheets.~~

~~(4)~~ ~~Average loans are shown net of deferred fees and costs. NPLs are included.~~

~~(5)~~ ~~Includes interest-bearing funds with Federal Reserve Bank, interest earning deposits with banks, and federal funds sold and securities purchased under resale agreements.~~

~~(6)~~ ~~Includes the impact of non-interest-bearing capital funding sources.~~

5553

Net Interest Income and Rate/Volume Analysis

The following ~~table sets~~tables set forth the major components of net interest income and the related annualized yields and rates for the ~~nine~~three and six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, as well as the variances between the periods caused by changes in interest rates versus changes in volume.

Table 12 - Net Interest Income and Rate/Volume Analysis
Nine Months Ended September 30, 2021 Compared to 2020
Average Balances Interest Annualized Yield/Rate Change due to Increase (Decrease)
(dollars in thousands) 2021 2020 2021 2020 2021 2020 Volume Rate
Assets
Interest earning assets:
Investment securities $ 9,171,573 $ 6,843,400 $ 98,631 $ 139,791 1.43 % 2.72 % $ 47,364 $ (88,524) $ (41,160)
Trading account assets 3,703 5,955 44 99 1.60 2.22 (37) (18) (55)
Taxable loans, net(1)
37,584,500 38,671,202 1,104,446 1,203,839 3.94 4.16 (33,812) (65,581) (99,393)
Tax-exempt loans, net(1)(2)
493,975 494,885 10,957 12,366 2.97 3.34 (22) (1,387) (1,409)
Allowance for loan losses (558,336) (486,276)
Loans, net 37,520,139 38,679,811 1,115,403 1,216,205 3.97 4.20 (33,834) (66,968) (100,802)
Mortgage loans held for sale 228,458 184,396 4,926 4,291 2.87 3.10 1,022 (387) 635
Other loans held for sale 600,776 172,241 13,685 4,756 3.00 3.63 11,635 (2,706) 8,929
Other earning assets(3)
2,940,049 1,209,239 2,705 2,477 0.12 0.27 3,366 (3,138) 228
Federal Home Loan Bank and Federal Reserve Bank stock 158,921 244,111 1,971 6,000 1.65 3.28 (2,090) (1,939) (4,029)
Total interest earning assets 50,623,619 47,339,153 1,237,365 1,373,619 3.27 3.88 27,426 (163,680) (136,254)
Cash and due from banks 567,702 532,808
Premises and equipment, net 453,339 485,790
Other real estate 1,579 11,709
Cash surrender value of bank-owned life insurance 1,056,257 989,238
Other assets(4)
2,145,850 2,209,923
Total assets $ 54,848,346 $ 51,568,621
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits $ 8,544,720 $ 7,167,617 $ 7,606 $ 15,561 0.12 % 0.29 % $ 2,987 $ (10,942) $ (7,955)
Money market accounts 17,379,564 14,119,510 24,868 61,799 0.19 0.58 14,142 (51,073) (36,931)
Savings deposits 1,310,470 1,026,259 164 204 0.02 0.03 64 (104) (40)
Time deposits 4,977,025 8,361,942 27,837 108,106 0.75 1.73 (43,799) (36,470) (80,269)
Federal funds purchased and securities sold under repurchase agreements 205,316 199,230 104 242 0.07 0.16 7 (145) (138)
Other short-term borrowings — 658,128 — 7,643 — 1.53 (7,531) (112) (7,643)
Long-term debt 1,203,054 2,581,232 33,851 50,645 3.75 2.54 (26,183) 9,389 (16,794)
Total interest-bearing liabilities 33,620,149 34,113,918 94,430 244,200 0.37 0.94 (60,313) (89,457) (149,770)
Non-interest-bearing deposits 14,885,880 11,374,121
Other liabilities 1,149,209 1,028,401
Shareholders' equity 5,193,108 5,052,181
Total liabilities and equity $ 54,848,346 $ 51,568,621
Interest rate spread: 2.90 % 2.94 %
Net interest income - TE/margin(5)
$ 1,142,935 $ 1,129,419 3.02 % 3.20 % $ 87,739 $ (74,223) $ 13,516
Taxable equivalent adjustment 2,301 2,603
Net interest income, actual $ 1,140,634 $ 1,126,816


Table 12 - Quarter-to-Date Net Interest Income and Rate/Volume Analysis
	Three Months Ended June 30,												2022 Compared to 2021
	Average Balances				Interest				Annualized Yield/Rate				Change due to				Increase (Decrease)
(dollars in thousands)	2022		2021		2022		2021		2022		2021		Volume		Rate
Assets
Interest earning assets:
Investment securities available for sale	$	11,153,091	$	9,184,691	$	50,312	$	33,298	1.81	%	1.45	%	$	7,116	$	9,898	$	17,014
Trading account assets	11,987		2,831		73		8		2.44		1.15		26		39		65
Commercial loans (1) (2)	31,870,387		29,936,751		308,442		287,677		3.88		3.85		18,560		2,205		20,765
Consumer loans (1)	8,720,488		8,559,726		83,826		84,402		3.86		3.94		1,579		(2,155)		(576)
Allowance for loan losses	(415,372)		(561,242)		—		—		—		—		—		—		—
Loans, net	40,175,503		37,935,235		392,268		372,079		3.92		3.93		20,139		50		20,189
Mortgage loans held for sale	85,299		242,940		921		1,859		4.32		3.06		(1,203)		265		(938)
Other loans held for sale	725,762		615,301		7,678		4,750		4.19		3.05		840		2,088		2,928
Other earning assets(3)	813,028		2,705,819		1,660		740		0.81		0.11		(472)		1,392		920
Federal Home Loan Bank and Federal Reserve Bank stock	179,837		159,340		1,820		800		4.05		2.01		103		917		1,020
Total interest earning assets	53,144,507		50,846,157		$	454,732	$	413,534	3.43	%	3.26	%	26,549		14,649		41,198
Cash and due from banks	538,647		571,561
Premises, equipment, and software, net	385,457		452,652
Other real estate	11,439		1,406
Cash surrender value of bank-owned life insurance	1,077,231		1,055,663
Other assets(4)	1,379,659		2,090,332
Total assets	$	56,536,940	$	55,017,771

Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits	$	9,513,334	$	8,601,262	$	3,598	$	2,441	0.15	%	0.11	%	250		907		1,157
Money market accounts	15,328,395		15,476,262		6,850		7,181		0.18		0.19		(70)		(261)		(331)
Savings deposits	1,506,195		1,333,297		72		55		0.02		0.02		9		8		17
Time deposits	2,829,684		3,792,382		1,688		4,894		0.24		0.52		(1,248)		(1,958)		(3,206)
Brokered deposits	2,878,536		3,057,607		6,293		4,799		0.88		0.63		(281)		1,775		1,494
Federal funds purchased and securities sold under repurchase agreements	246,737		204,053		219		35		0.35		0.07		7		177		184
Other short-term borrowings	478,469		—		896		—		0.74		—		896		—		896
Long-term debt	878,413		1,203,038		8,768		11,478		3.99		3.82		(3,092)		382		(2,710)
Total interest-bearing liabilities	33,659,763		33,667,901		$	28,384	$	30,883	0.33	%	0.36	%	(3,529)		1,030		(2,499)
Non-interest-bearing deposits	16,959,850		15,088,836
Other liabilities	1,247,646		1,091,321
Shareholders' equity	4,669,681		5,169,713
Total liabilities and equity	$	56,536,940	$	55,017,771
Interest rate spread:									3.10		2.90
Net interest income - TE/margin(5)					$	426,348	$	382,651	3.22	%	3.02	%	$	30,078	$	13,619	$	43,697
Taxable equivalent adjustment					960		791
Net interest income, actual					$	425,388	$	381,860

(1) Average loans are shown net of unearned income. NPLs are included. Interest income includes fees as follows: 2022 - $13.0 million, 2021 - ~~$90.8 million, 2020 - $42.8~~$28.5 million.

(2) Reflects taxable-equivalent adjustments, using the statutory federal income tax rate of 21%, in adjusting interest on tax-exempt loans to a taxable-equivalent basis.

(3) Includes interest-bearing funds with Federal Reserve Bank, interest earning deposits with banks, and federal funds sold and securities purchased under resale agreements.

(4) Includes average net unrealized gains (losses) on investment securities available for sale of ~~$73.1~~$(923.1) million and ~~$212.9~~$37.0 million for the ~~nine~~three months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively.

(5) The net interest margin is calculated by dividing annualized net interest income - TE by average total interest earnings assets.


Table 13 - Year-to-Date Net Interest Income and Rate/Volume Analysis
	Six Months Ended June 30,												2022 Compared to 2021
	Average Balances				Interest				Annualized Yield/Rate				Change due to				Increase (Decrease)
(dollars in thousands)	2022		2021		2022		2021		2022		2021		Volume		Rate
Assets
Interest earning assets:
Investment securities available for sale	$	11,206,150	$	8,813,191	$	97,562	$	62,755	1.74	%	1.42	%	$	16,850	$	17,957	$	34,807
Trading account assets	10,540		2,947		112		30		2.13		2.01		76		6		82
Commercial loans (1) (2)	31,316,646		29,930,734		589,029		578,877		3.79		3.90		26,803		(16,651)		10,152
Consumer loans (1)	8,657,598		8,424,423		165,194		166,466		3.83		3.97		4,590		(5,862)		(1,272)
Allowance for loan losses	(419,639)		(580,450)
Loans, net	39,554,605		37,774,707		754,223		745,343		3.84		3.97		31,393		(22,513)		8,880
Mortgage loans held for sale	94,542		244,940		1,803		3,516		3.81		2.87		(2,140)		427		(1,713)
Other loans held for sale	661,768		637,901		12,978		9,555		3.90		2.98		353		3,070		3,423
Other earning assets(3)	1,363,223		2,771,576		2,475		1,458		0.36		0.10		(629)		1,646		1,017
Federal Home Loan Bank and Federal Reserve Bank stock	170,006		158,503		2,505		1,468		2.95		1.85		106		931		1,037
Total interest earning assets	53,060,834		50,403,765		871,658		824,125		3.31		3.29		46,009		1,524		47,533
Cash and due from banks	543,638		545,295
Premises, equipment, and software, net	392,079		456,537
Other real estate	11,598		1,613
Cash surrender value of bank-owned life insurance	1,074,076		1,053,603
Other assets(4)	1,613,313		2,144,615
Total assets	$	56,695,538	$	54,605,428

Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits	$	9,531,330	$	8,586,092	5,970		5,414		0.13		0.13		609		(53)		556
Money market accounts	15,685,030		15,412,941		12,199		15,911		0.16		0.21		283		(3,995)		(3,712)
Savings deposits	1,483,547		1,276,608		139		105		0.02		0.02		20		14		34
Time deposits	2,919,242		3,972,840		3,826		11,936		0.26		0.61		(3,187)		(4,923)		(8,110)
Brokered deposits	2,833,580		3,212,608		10,026		11,023		0.71		0.69		(1,297)		300		(997)
Federal funds purchased and securities sold under repurchase agreements	220,689		206,735		230		69		0.21		0.07		5		156		161
Other short-term borrowings	242,870		—		896		—		0.73		—		896		—		896
Long-term debt	930,131		1,202,827		18,913		22,386		4.07		3.73		(5,044)		1,571		(3,473)
Total interest-bearing liabilities	33,846,419		33,870,651		52,199		66,844		0.31		0.39		(7,715)		(6,930)		(14,645)
Non-interest-bearing deposits	16,727,040		14,443,645
Other liabilities	1,196,375		1,138,073
Shareholders' equity	4,925,704		5,153,059
Total liabilities and equity	$	56,695,538	$	54,605,428
Interest rate spread:									3.00	%	2.90	%
Net interest income - TE/margin(5)					$	819,459	$	757,281	3.11	%	3.03	%	$	53,724	$	8,454	$	62,178
Taxable equivalent adjustment					1,824		1,565
Net interest income, actual					$	817,635	$	755,716

(1) Average loans are shown net of unearned income. NPLs are included. Interest income includes fees as follows: 2022 - $33.7 million, 2021 - $60.4 million.

(2) Reflects taxable-equivalent adjustments, using the statutory federal income tax rate of 21%, in adjusting interest on tax-exempt loans to a taxable-equivalent basis.

(3) Includes interest-bearing funds with Federal Reserve Bank, interest earning deposits with banks, and federal funds sold and securities purchased under resale agreements.

(4) Includes average net unrealized gains (losses) on investment securities available for sale of $(587.1) million and $76.3 million for the six months ended June 30, 2022 and 2021, respectively.

(5) The net interest margin is calculated by dividing annualized net interest income - TE by average total interest earnings assets.

Market Risk Analysis

Interest rate risk is the primary market risk to which Synovus is potentially exposed. Synovus measures its sensitivity to changes in market interest rates through the use of a simulation model which incorporates all of Synovus’ earning assets and liabilities. These simulations are used to determine a baseline net interest income projection and the sensitivity of the income profile based on changes in interest rates. These simulations incorporate assumptions and factors, including, but not limited to, changes in market rates, in the size or composition of the balance sheet, and in repricing characteristics as well as client behaviors. This process is reviewed and updated on an on-going basis in a manner consistent with Synovus’ ALCO governance framework.

Synovus has modeled its baseline net interest income ~~projection~~forecast assuming a relatively flat interest rate environment with the federal funds rate at the Federal Reserve’s ~~current~~ targeted range of 0%1.50% to ~~0.25%~~1.75% as of June 30, 2022 and the ~~current~~ prime rate of ~~3.25%.~~4.75% as of June 30, 2022. Synovus has modeled the impact of ~~a gradual~~an immediate increase in market interest rates across the yield curve of 100 and 200 bps ~~and a gradual decline of 25 bps~~ to determine the sensitivity of net interest income for the next twelve months. The lesser decline of the downrate scenario presented was selected in light of the low absolute level of monetary policy rates and generally incorporates an assumption that rates are floored at the zero-lower-bound. Synovus' current rate risk position is considered asset-sensitive and would be expected to benefit net interest income in a rising interest rate ~~environment and reduce net interest income in a declining interest rate~~ environment. ~~A modest decline in sensitivity relative to the prior period-end is the result of a host of factors, including increased securities portfolio and the higher absolute level of long-term interest rates.~~ The following table represents the estimated sensitivity of net interest income at ~~September~~June 30, ~~2021,~~2022, with comparable information for December 31, ~~2020.~~2021.

Table 13 - Twelve Month Net Interest Income Sensitivity
Estimated % Change in Net Interest Income as Compared to Unchanged Rates (for the next twelve months)
Change in Short-term Interest Rates (in bps) September 30, 2021 December 31, 2020
+200 5.4% 6.8%
+100 2.5% 3.5%
-25 (0.2)% (0.5)%

Table 14 - Twelve Month Net Interest Income Sensitivity

Estimated % Change in Net Interest Income as Compared to Unchanged Rates (for the next twelve months)

Change in Interest Rates (in bps)

June 30, 2022

December 31, 2021

+200

11.0%

14.5%

+100

5.5%

6.5%

The net interest income simulation model is the primary tool utilized to evaluate potential interest rate risks over a shorter-term time horizon. Synovus also evaluates potential longer-term interest rate risk through modeling and evaluation of the sensitivity of the Company's EVE. The EVE measurement process estimates the net fair value of assets, liabilities, and off-balance sheet financial instruments under various interest rate scenarios. Management uses EVE sensitivity analyses as an additional means of measuring interest rate risk and incorporates this form of analysis within its governance and limits framework.

LIBOR Transition

~~In July 2017, the FCA, which regulates LIBOR, announced that it intends to stop persuading or compelling banks to submit rates for the calculation of LIBOR at the end of 2021.~~ On March 5, 2021, the FCA confirmed that all LIBOR settings will either cease to be provided by any administrator or no longer be representative immediately after ~~December 31, 2021 for the 1-week and 2-month US dollar settings and immediately after~~ June 30, 2023, for all remaining US dollar settings.

The ARRC ~~has~~ proposed SOFR as its preferred rate as an alternative to LIBOR and ~~has~~ proposed a paced market transition plan to SOFR from LIBOR. Organizations are currently working on industry-wide and company-specific transition plans related to derivatives and cash markets exposed to LIBOR. As noted within "Part I - Item 1A. Risk Factors" of Synovus' ~~2020~~2021 Form 10-K, Synovus holds instruments that may be impacted by the discontinuance of LIBOR, which include floating rate obligations, loans, deposits, derivatives and hedges, and other financial instruments. Synovus has established a cross-functional LIBOR transition working group with representation from all business lines, support and control functions, and legal counsel that has 1) assessed the Company's current exposure to LIBOR indexed instruments and the data, systems and processes that ~~will be impacted;~~were impacted and have been changed as a result; 2) established a detailed implementation plan; 3) formulated communications and learning activities to support clients and colleagues; and 4) developed a formal governance structure for the transition. ~~Loan~~For the last several years, loan agreement provisions for new and renewed loans ~~include~~included LIBOR fallback language to ensure transition from LIBOR ~~to the new benchmark~~ when such transition occurs. All direct exposures resulting from existing financial contracts that mature after 2021 have been inventoried and are monitored on an ongoing basis. ~~Based on~~The Company discontinued the use of LIBOR as of December 31, 2021, with limited exceptions as permitted by regulatory guidance ~~the Company currently expects to cease originating loans indexed to LIBOR no later than December 31, 2021.~~or internal policies. Synovus has expanded its product offerings and currently offers multiple alternative reference rates including SOFR, BSBY, and ~~BSBY~~Prime indices. ~~Other viable alternative reference~~As of June 30, 2022, the Company had approximately $13 billion in loans tied to LIBOR that mature after June 30, 2023. Remediation activities are underway to modify or transition existing exposures to alternate index rates ~~are also~~or to convert the rate under existing fallback language, including the use of the Adjustable Interest (LIBOR) Act, enacted in March 2022, and other relevant legislation.

being evaluated for use as potential replacements of LIBOR. We do not currently expect there to be a material financial impact to the Company or our clients regardless of which index or indices the Company offers as alternatives to LIBOR.

Critical Accounting Policies

The accounting and financial reporting policies of Synovus are in accordance with GAAP and conform to the accounting and reporting guidelines prescribed by bank regulatory authorities. Synovus has identified certain of its accounting policies as “critical accounting policies,” consisting of those related to the allowance for credit losses and income taxes. In determining which accounting policies are critical in nature, Synovus has identified the policies that require significant judgment or involve complex estimates. It is management's practice to discuss critical accounting policies with the Board of Directors' Audit Committee on a periodic basis, including the development, selection, implementation and disclosure of the critical accounting policies. The application of these policies has a significant impact on Synovus’ unaudited interim consolidated financial statements. Synovus’ financial results could differ significantly if different judgments or estimates are used in the application of these policies. All accounting policies described in "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 - Summary of Significant Accounting Policies" in Synovus' ~~2020~~2021 Form 10-K should be reviewed for a greater understanding of how we record and report our financial performance. There have been no significant changes to the accounting policies, estimates and assumptions, or the judgments affecting the application of these estimates and assumptions from those disclosed in Synovus' ~~2020~~2021 Form ~~10-K other than the exclusion of goodwill impairment as a critical accounting estimate due to lack of impairment indicators.~~10-K.

Non-GAAP Financial Measures

The measures entitled adjusted non-interest revenue; adjusted non-interest expense; adjusted total revenue; adjusted tangible efficiency ratio; adjusted net income available to common shareholders; adjusted net income per common share, diluted; adjusted return on average assets; adjusted return on average common equity; return on average tangible common equity; adjusted return on average tangible common equity; and tangible common equity ratio are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are total non-interest revenue; total non-interest expense; total TE revenue; efficiency ratio-TE; net income available to common shareholders; net income per common share, diluted; return on average assets; return on average common equity; and the ratio of total shareholders' equity to total assets, respectively.

Management believes that these non-GAAP financial measures provide meaningful additional information about Synovus to assist management and investors in evaluating Synovus’ operating results, financial strength, the performance of its business, and the strength of its capital position. However, these non-GAAP financial measures have inherent limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of operating results or capital position as reported under GAAP. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant items and other factors, and since they are not required to be uniformly applied, they may not be comparable to other similarly titled measures at other companies. Adjusted total revenue and adjusted non-interest revenue are measures used by management to evaluate total TE revenue and non-interest revenue exclusive of net investment securities gains (losses)~~, changes in fair value of private equity investments, net,~~ and fair value ~~adjustment~~adjustments on non-qualified deferred compensation. Adjusted non-interest expense and the adjusted tangible efficiency ratio are measures utilized by management to measure the success of expense management initiatives focused on reducing recurring controllable operating costs. Adjusted net income available to common shareholders, adjusted net income per common share, diluted, adjusted return on average assets, and adjusted return on average common equity are measurements used by management to evaluate operating results exclusive of items that management believes are not indicative of ongoing operations and impact period-to-period comparisons. ~~Adjusted~~Return on average tangible common equity and adjusted return on average tangible common equity is a measure used by management to compare Synovus' performance with other financial institutions because it calculates the return available to common shareholders without the impact of intangible assets and their related amortization, thereby allowing management to evaluate the performance of the business consistently. The tangible common equity ratio is used by management to assess the strength of our capital position. The computations of these measures are set forth in the tables below.



Table 15 - Reconciliation of Non-GAAP Financial Measures
	Three Months Ended						Six Months Ended
(in thousands, except per share data)	June 30, 2022			June 30, 2021			June 30, 2022			June 30, 2021
Adjusted non-interest revenue
Total non-interest revenue	$	97,266		$	107,087		$	202,600		$	218,043
Subtract/add: Investment securities (gains) losses, net	—			—			—			1,990
Subtract/add: Fair value adjustment on non-qualified deferred compensation	3,240			(1,126)			4,535			(1,918)
Adjusted non-interest revenue	$	100,506		$	105,961		$	207,135		$	218,115

Adjusted non-interest expense
Total non-interest expense	$	282,051		$	270,531		$	554,501		$	537,665
Subtract: Earnout liability adjustments	—			(750)			—			(750)
Subtract/add: Restructuring charges	1,850			(415)			8,274			(946)
Subtract: Valuation adjustment to Visa derivative	(3,500)			—			(3,500)			—
Subtract: Loss on early extinguishment of debt	—			—			(677)			—
Subtract/add: Fair value adjustment on non-qualified deferred compensation	3,240			(1,126)			4,535			(1,918)
Adjusted non-interest expense	$	283,641		$	268,240		$	563,133		$	534,051

Adjusted total revenue and adjusted tangible efficiency ratio
Adjusted non-interest expense	$	283,641		$	268,240		$	563,133		$	534,051
Subtract: Amortization of intangibles	(2,118)			(2,379)			(4,236)			(4,758)
Adjusted tangible non-interest expense	$	281,523		$	265,861		$	558,897		$	529,293

Net interest income	$	425,388		$	381,860		$	817,635		$	755,716
Add: Tax equivalent adjustment	960			791			1,824			1,565
Add: Total non-interest revenue	97,266			107,087			202,600			218,043
Total TE revenue	$	523,614		$	489,738		$	1,022,059		$	975,324
Subtract/add: Investment securities (gains) losses, net	—			—			—			1,990
Subtract/add: Fair value adjustment on non-qualified deferred compensation	3,240			(1,126)			4,535			(1,918)
Adjusted total revenue	$	526,854		$	488,612		$	1,026,594		$	975,396
Efficiency ratio-TE	53.87		%	55.24		%	54.25		%	55.13		%
Adjusted tangible efficiency ratio	53.43			54.41			54.44			54.26

Adjusted net income available to common shareholders and adjusted diluted earnings per share
Net income available to common shareholders	$	169,761		$	177,909		$	332,507		$	356,711
Add: Earnout liability adjustments	—			750			—			750
Add/subtract: Restructuring charges	(1,850)			415			(8,274)			946
Add: Valuation adjustment to Visa derivative	3,500			—			3,500			—
Add: Loss on early extinguishment of debt	—			—			677			—
Subtract/add: Investment securities (gains) losses, net	—			—			—			1,990
Add/subtract: Tax effect of adjustments (1)	(393)			(105)			976			(743)
Adjusted net income available to common shareholders	$	171,018		$	178,969		$	329,386		$	359,654
Weighted average common shares outstanding, diluted	146,315			149,747			146,489			149,764
Net income per common share, diluted	$	1.16		$	1.19		$	2.27		$	2.38
Adjusted net income per common share, diluted	1.17			1.20			2.25			2.40

Table 14 - Reconciliation of Non-GAAP Financial Measures
Three Months Ended Nine Months Ended
(in thousands) September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Adjusted non-interest revenue
Total non-interest revenue $ 114,955 $ 114,411 $ 332,997 $ 391,752
Subtract/add: Investment securities (gains) losses, net (962) 1,550 1,028 (76,594)
Subtract: Gain on sale and increase in fair value of private equity investments, net — (260) — (4,712)
Add/subtract: Fair value adjustment on non-qualified deferred compensation 97 (796) (1,821) (539)
Adjusted non-interest revenue $ 114,090 $ 114,905 $ 332,204 $ 309,907
Adjusted non-interest expense
Total non-interest expense $ 267,032 $ 316,655 $ 804,697 $ 877,076
Add/subtract: Earnout liability adjustments 243 — (507) (4,908)
Subtract: Goodwill impairment — (44,877) — (44,877)
Subtract: Restructuring charges (319) (2,882) (1,265) (8,924)
Subtract: Loss on early extinguishment of debt — (154) — (2,057)
Add/subtract: Fair value adjustment on non-qualified deferred compensation 97 (796) (1,821) (539)
Adjusted non-interest expense $ 267,053 $ 267,946 $ 801,104 $ 815,771



Table 15 - Reconciliation of Non-GAAP Financial Measures, continued
	Three Months Ended						Six Months Ended
(dollars in thousands)	June 30, 2022			June 30, 2021			June 30, 2022			June 30, 2021
Adjusted return on average assets (annualized)
Net income	$	178,052		$	186,200		$	349,088		$	373,292
Add: Earnout liability adjustments	—			750			—			750
Add/subtract: Restructuring charges	(1,850)			415			(8,274)			946
Add: Valuation adjustment to Visa derivative	3,500			—			3,500			—
Add: Loss on early extinguishment of debt	—			—			677			—
Subtract/add: Investment securities (gains) losses, net	—			—			—			1,990
Add/subtract: Tax effect of adjustments (1)	(393)			(105)			976			(743)
Adjusted net income	$	179,309		$	187,260		$	345,967		$	376,235
Net income annualized	714,165			746,846			703,962			752,771
Adjusted net income annualized	719,206			751,098			697,668			758,706
Total average assets	56,536,940			55,017,771			56,695,538			54,605,428
Return on average assets (annualized)	1.26		%	1.36		%	1.24		%	1.38		%
Adjusted return on average assets (annualized)	1.27			1.37			1.23			1.39


	Three Months Ended
(dollars in thousands)	June 30, 2022			March 31, 2022			June 30, 2021
Adjusted return on average common equity, return on average tangible common equity, and adjusted return on average tangible common equity (annualized)
Net income available to common shareholders	$	169,761		$	162,746		$	177,909
Add: Earnout liability adjustments	—			—			750
Add/subtract: Restructuring charges	(1,850)			(6,424)			415
Add: Valuation adjustment to Visa derivative	3,500			—			—
Add: Loss on early extinguishment of debt	—			677			—

Add/subtract: Tax effect of adjustments (1)	(393)			1,369			(105)
Adjusted net income available to common shareholders	$	171,018		$	158,368		$	178,969

Adjusted net income available to common shareholders annualized	$	685,951		$	642,270		$	717,843
Add: Amortization of intangibles, annualized net of tax	6,471			6,543			7,128
Adjusted net income available to common shareholders excluding amortization of intangibles annualized	$	692,422		$	648,813		$	724,971

Net income available to common shareholders annualized	$	680,910		$	660,025		$	713,591
Add: Amortization of intangibles, annualized net of tax	6,471			6,543			7,128
Net income available to common shareholders excluding amortization of intangibles	$	687,381		$	666,568		$	720,719

Total average shareholders' equity less preferred stock	$	4,132,536		$	4,647,426		$	4,632,568
Subtract: Goodwill	(452,390)			(452,390)			(452,390)
Subtract: Other intangible assets, net	(32,387)			(34,576)			(41,399)
Total average tangible shareholders' equity less preferred stock	$	3,647,759		$	4,160,460		$	4,138,779
Return on average common equity (annualized)	16.48		%	14.20		%	15.40		%
Adjusted return on average common equity (annualized)	16.60			13.82			15.50
Return on average tangible common equity (annualized)	18.84			16.02			17.41
Adjusted return on average tangible common equity (annualized)	18.98			15.59			17.52

Three Months Ended Nine Months Ended
(in thousands, except per share data) September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Adjusted total revenue and adjusted tangible efficiency ratio
Adjusted non-interest expense $ 267,053 $ 267,946 $ 801,104 $ 815,771
Subtract: Amortization of intangibles (2,379) (2,640) (7,137) (7,920)
Adjusted tangible non-interest expense $ 264,674 $ 265,306 $ 793,967 $ 807,851
Net interest income $ 384,917 $ 376,990 $ 1,140,634 $ 1,126,816
Add: Tax equivalent adjustment 736 956 2,301 2,603
Add: Total non-interest revenue 114,955 114,411 332,997 391,752
Total TE revenue $ 500,608 $ 492,357 $ 1,475,932 $ 1,521,171
Subtract/add: Investment securities (gains) losses, net (962) 1,550 1,028 (76,594)
Subtract: Gain on sale and increase in fair value of private equity investments, net — (260) — (4,712)
Add/subtract: Fair value adjustment on non-qualified deferred compensation 97 (796) (1,821) (539)
Adjusted total revenue $ 499,743 $ 492,851 $ 1,475,139 $ 1,439,326
Efficiency ratio-TE 53.34 % 64.31 % 54.52 % 57.66 %
Adjusted tangible efficiency ratio 52.96 53.83 53.82 56.13
Adjusted net income per common share, diluted
Net income available to common shareholders $ 178,482 $ 83,283 $ 535,193 $ 198,414
Subtract/add: Earnout liability adjustments (243) — 507 4,908
Add: Goodwill impairment — 44,877 — 44,877
Add: Restructuring charges 319 2,882 1,265 8,924
Add: Loss on early extinguishment of debt — 154 — 2,057
Subtract/add: Investment securities (gains) losses, net (962) 1,550 1,028 (76,594)
Subtract: Gain on sale and increase in fair value of private equity investments, net — (260) — (4,712)
Add/subtract: Tax effect of adjustments (1)
164 (1,122) (579) 18,214
Adjusted net income available to common shareholders $ 177,760 $ 131,364 $ 537,414 $ 196,088
Weighted average common shares outstanding, diluted 147,701 147,976 149,069 148,037
Adjusted net income per common share, diluted $ 1.20 $ 0.89 $ 3.61 $ 1.32

Table 14 - Reconciliation of Non-GAAP Financial Measures, continued
Three Months Ended Nine Months Ended
(dollars in thousands) September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Adjusted return on average assets (annualized)
Net income $ 186,773 $ 91,574 $ 560,065 $ 223,286
Subtract/add: Earnout liability adjustments (243) — 507 4,908
Add: Goodwill impairment — 44,877 — 44,877
Add: Restructuring charges 319 2,882 1,265 8,924
Add: Loss on early extinguishment of debt — 154 — 2,057
Subtract/add: Investment securities (gains) losses, net (962) 1,550 1,028 (76,594)
Subtract: Gain on sale and increase in fair value of private equity investments, net — (260) — (4,712)
Add/subtract: Tax effect of adjustments (1)
164 (1,122) (579) 18,214
Adjusted net income $ 186,051 $ 139,655 $ 562,286 $ 220,960
Net income annualized 741,002 364,305 748,805 298,258
Adjusted net income annualized 738,137 555,584 751,774 295,151
Total average assets 55,326,260 53,138,334 54,848,346 51,568,621
Return on average assets (annualized) 1.34 % 0.69 % 1.37 % 0.58 %
Adjusted return on average assets (annualized) 1.33 1.05 1.37 0.57

Three Months Ended
(dollars in thousands) September 30, 2021 June 30, 2021 September 30, 2020
Adjusted return on average common equity and adjusted return on average tangible common equity (annualized)
Net income available to common shareholders $ 178,482 $ 177,909 $ 83,283
Subtract/add: Earnout liability adjustments (243) 750 —
Add: Goodwill impairment — — 44,877
Add: Restructuring charges 319 415 2,882
Add: Loss on early extinguishment of debt — — 154
Subtract/add: Investment securities (gains) losses, net (962) — 1,550
Subtract: Increase in fair value of private equity investments — — (260)
Add/subtract: Tax effect of adjustments (1)
164 (105) (1,122)
Adjusted net income available to common shareholders $ 177,760 $ 178,969 $ 131,364
Adjusted net income available to common shareholders' annualized $ 705,243 $ 717,843 $ 522,600
Add: Amortization of intangibles, annualized net of tax 7,050 7,128 7,782
Adjusted net income available to common shareholders excluding amortization of intangibles annualized $ 712,293 $ 724,971 $ 530,382
Net income available to common shareholders annualized $ 708,108 $ 713,591 $ 331,322
Total average shareholders' equity less preferred stock $ 4,734,754 $ 4,632,568 $ 4,553,159
Subtract: Goodwill (452,390) (452,390) (497,267)
Subtract: Other intangible assets, net (39,109) (41,399) (49,075)
Total average tangible shareholders' equity less preferred stock $ 4,243,255 $ 4,138,779 $ 4,006,817
Return on average common equity (annualized) 14.96 % 15.40 % 7.28 %
Adjusted return on average common equity (annualized) 14.90 15.50 11.48
Adjusted return on average tangible common equity (annualized) 16.79 17.52 13.24


Table 14 - Reconciliation of Non-GAAP Financial Measures, continued
Table 15 - Reconciliation of Non-GAAP Financial Measures, continued														Table 15 - Reconciliation of Non-GAAP Financial Measures, continued
(dollars in thousands)	(dollars in thousands)	September 30, 2021			June 30, 2021			December 31, 2020			September 30, 2020			(dollars in thousands)	June 30, 2022			March 31, 2022			December 31, 2021			June 30, 2021
Tangible common equity ratio	Tangible common equity ratio													Tangible common equity ratio
Total assets	Total assets	$	55,509,129		$	54,938,659		$	54,394,159		$	53,040,538		Total assets	$	57,382,745		$	56,419,549		$	57,317,226		$	54,938,659
Subtract: Goodwill	Subtract: Goodwill	(452,390)			(452,390)			(452,390)			(452,390)			Subtract: Goodwill	(452,390)			(452,390)			(452,390)			(452,390)
Subtract: Other intangible assets, net	Subtract: Other intangible assets, net	(37,975)			(40,354)			(45,112)			(47,752)			Subtract: Other intangible assets, net	(31,360)			(33,478)			(35,596)			(40,354)
Tangible assets	Tangible assets	$	55,018,764		$	54,445,915		$	53,896,657		$	52,540,396		Tangible assets	$	56,898,995		$	55,933,681		$	56,829,240		$	54,445,915
Total shareholders' equity	Total shareholders' equity	$	5,252,802		$	5,237,714		$	5,161,334		$	5,064,542		Total shareholders' equity	$	4,584,438		$	4,824,635		$	5,296,800		$	5,237,714
Subtract: Goodwill	Subtract: Goodwill	(452,390)			(452,390)			(452,390)			(452,390)			Subtract: Goodwill	(452,390)			(452,390)			(452,390)			(452,390)
Subtract: Other intangible assets, net	Subtract: Other intangible assets, net	(37,975)			(40,354)			(45,112)			(47,752)			Subtract: Other intangible assets, net	(31,360)			(33,478)			(35,596)			(40,354)
Subtract: Preferred stock, no par value	Subtract: Preferred stock, no par value	(537,145)			(537,145)			(537,145)			(537,145)			Subtract: Preferred stock, no par value	(537,145)			(537,145)			(537,145)			(537,145)
Tangible common equity	Tangible common equity	$	4,225,292		$	4,207,825		$	4,126,687		$	4,027,255		Tangible common equity	$	3,563,543		$	3,801,622		$	4,271,669		$	4,207,825
Total shareholders' equity to total assets ratio	Total shareholders' equity to total assets ratio	9.46		%	9.53		%	9.49		%	9.55		%	Total shareholders' equity to total assets ratio	7.99		%	8.55		%	9.24		%	9.53		%
Tangible common equity ratio	Tangible common equity ratio	7.68			7.73			7.66			7.67			Tangible common equity ratio	6.26			6.80			7.52			7.73

(1) An assumed marginal tax rate of 25.3% for 2021 and 25.9% for 2020 was applied.
(1) An assumed marginal tax rate of 23.8% for 2022 and 25.3% for 2021 was applied.														(1) An assumed marginal tax rate of 23.8% for 2022 and 25.3% for 2021 was applied.

ITEM 3. – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information presented in the Market Risk Analysis section of the Management's Discussion and Analysis of Financial Condition and Results of Operations section of this Report is incorporated herein by reference.

ITEM 4. – CONTROLS AND PROCEDURES

In connection with the preparation of this Quarterly Report on Form 10-Q, an evaluation was carried out by Synovus' management, with the participation of Synovus' Chief Executive Officer and Chief Financial Officer, of the effectiveness of Synovus' disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Disclosure controls and procedures are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures. Based on that evaluation, Synovus' Chief Executive Officer and Chief Financial Officer have concluded that, as of ~~September~~June 30, ~~2021,~~2022, Synovus' disclosure controls and procedures were effective.

There have been no material changes in Synovus' internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the quarter ended ~~September~~June 30, ~~2021~~2022 that have materially affected, or are reasonably likely to materially affect, Synovus' internal control over financial reporting.

PART II. – OTHER INFORMATION

ITEM 1. – LEGAL PROCEEDINGS

See "Part I - Item 1. Financial Statements and Supplementary Data - Note 9 - Commitments and Contingencies" of this Report.

ITEM 1A. – RISK FACTORS

In addition to the other information set forth in this Report, you should carefully consider the factors discussed in "Part I - Item IA - Risk Factors” of Synovus' ~~2020~~2021 Form 10-K which could materially affect its business, financial position, results of operations, cash flows, or future results. Please be aware that these risks may change over time and other risks may prove to be important in the future. New risks may emerge at any time, and we cannot predict such risks or estimate the extent to which they may affect our business, financial condition or results of operations, or the trading price of our securities.

There are no material changes during the period covered by this Report to the risk factors previously disclosed in Synovus' ~~2020~~2021 Form 10-K.

ITEM 2. – UNREGISTERED SALES OF SECURITIES AND USE OF PROCEEDS

(a) None.

(b) None.

The Company announced on January ~~26, 2021~~20, 2022 that its Board of Directors authorized share repurchases of up to ~~$200~~$300 million in ~~2021. As of October 31, 2021, the remaining authorization under this program was $31.8 million.~~2022.


Share Repurchases	Share Repurchases							Share Repurchases
(in thousands, except per share data)	(in thousands, except per share data)	Total Number of Shares Repurchased	Average Price Paid per Share(1)		Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs	Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs		(in thousands, except per share data)	Total Number of Shares Repurchased	Average Price Paid per Share(1)		Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs	Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
July 2021		637	$	42.53	637	$	80,448
August 2021		429	43.05		429	61,972
September 2021		710	40.90		710	32,931
April 1 to April 30, 2022								April 1 to April 30, 2022	25	$	42.41	25	$	289,273
May 1 to May 31, 2022								May 1 to May 31, 2022	53	42.85		53	287,019
June 1 to June 30, 2022								June 1 to June 30, 2022	—	—		—	287,019
Total	Total	1,776	$	42.00	1,776			Total	78	$	42.71	78

(1) The average price paid per share is calculated on a trade date basis for all open market transactions and excludes commissions and other transaction expenses.

The foregoing repurchases during the ~~third~~second quarter of ~~2021~~2022 were purchased through open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act.

ITEM 3. – DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. – MINE SAFETY DISCLOSURES

None.

ITEM 5. – OTHER INFORMATION

None.

ITEM 6. – EXHIBITS



Exhibit Number						Description

3.1						Restated Articles of Incorporation of Synovus, incorporated by reference to Exhibit 3.1 of Synovus’ Current Report on Form 8-K dated April 22, 2020, as filed with the SEC on April 24, 2020.

3.2						Restated Bylaws of Synovus, incorporated by reference to Exhibit 3.2 of Synovus' Current Report on Form 8-K dated April 22, 2020, as filed with the SEC on April 24, 2020.

~~10.1~~						~~First Amendment to the Synovus Financial Corp. Directors' Deferred Compensation Plan.~~

31.1						Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2						Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32						Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101						Interactive Data File

104						Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.


	SYNOVUS FINANCIAL CORP.

~~November 3, 2021~~August 2, 2022	By:	/s/ Andrew J. Gregory, Jr.
Date		Andrew J. Gregory, Jr.
		Executive Vice President and Chief Financial Officer
		(Duly Authorized Officer and Principal Financial Officer)


Table 10 - Capital Ratios
(dollars in thousands)	September 30, 2021			December 31, 2020
CET1 capital
Synovus Financial Corp.	$	4,276,765		$	4,034,865
Synovus Bank	4,905,396			4,641,711
Tier 1 risk-based capital
Synovus Financial Corp.	4,813,910			4,572,010
Synovus Bank	4,905,396			4,641,711
Total risk-based capital
Synovus Financial Corp.	5,765,528			5,604,230
Synovus Bank	5,544,573			5,361,611
CET1 capital ratio
Synovus Financial Corp.	9.58		%	9.66		%
Synovus Bank	11.01			11.11
Tier 1 risk-based capital ratio
Synovus Financial Corp.	10.79			10.95
Synovus Bank	11.01			11.11
Total risk-based capital to risk-weighted assets ratio
Synovus Financial Corp.	12.92			13.42
Synovus Bank	12.44			12.83
Leverage ratio
Synovus Financial Corp.	8.78			8.50
Synovus Bank	8.95			8.73
Tangible common equity ratio(1)
Synovus Financial Corp.	7.68			7.66


Table 12 - Net Interest Income and Rate/Volume Analysis
	Nine Months Ended September 30,												2021 Compared to 2020
	Average Balances				Interest				Annualized Yield/Rate				Change due to				Increase (Decrease)
(dollars in thousands)	2021		2020		2021		2020		2021		2020		Volume		Rate
Assets
Interest earning assets:
Investment securities	$	9,171,573	$	6,843,400	$	98,631	$	139,791	1.43	%	2.72	%	$	47,364	$	(88,524)	$	(41,160)
Trading account assets	3,703		5,955		44		99		1.60		2.22		(37)		(18)		(55)
Taxable loans, net(1)	37,584,500		38,671,202		1,104,446		1,203,839		3.94		4.16		(33,812)		(65,581)		(99,393)
Tax-exempt loans, net(1)(2)	493,975		494,885		10,957		12,366		2.97		3.34		(22)		(1,387)		(1,409)
Allowance for loan losses	(558,336)		(486,276)
Loans, net	37,520,139		38,679,811		1,115,403		1,216,205		3.97		4.20		(33,834)		(66,968)		(100,802)
Mortgage loans held for sale	228,458		184,396		4,926		4,291		2.87		3.10		1,022		(387)		635
Other loans held for sale	600,776		172,241		13,685		4,756		3.00		3.63		11,635		(2,706)		8,929
Other earning assets(3)	2,940,049		1,209,239		2,705		2,477		0.12		0.27		3,366		(3,138)		228
Federal Home Loan Bank and Federal Reserve Bank stock	158,921		244,111		1,971		6,000		1.65		3.28		(2,090)		(1,939)		(4,029)
Total interest earning assets	50,623,619		47,339,153		1,237,365		1,373,619		3.27		3.88		27,426		(163,680)		(136,254)
Cash and due from banks	567,702		532,808
Premises and equipment, net	453,339		485,790
Other real estate	1,579		11,709
Cash surrender value of bank-owned life insurance	1,056,257		989,238
Other assets(4)	2,145,850		2,209,923
Total assets	$	54,848,346	$	51,568,621

Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits	$	8,544,720	$	7,167,617	$	7,606	$	15,561	0.12	%	0.29	%	$	2,987	$	(10,942)	$	(7,955)
Money market accounts	17,379,564		14,119,510		24,868		61,799		0.19		0.58		14,142		(51,073)		(36,931)
Savings deposits	1,310,470		1,026,259		164		204		0.02		0.03		64		(104)		(40)
Time deposits	4,977,025		8,361,942		27,837		108,106		0.75		1.73		(43,799)		(36,470)		(80,269)
Federal funds purchased and securities sold under repurchase agreements	205,316		199,230		104		242		0.07		0.16		7		(145)		(138)
Other short-term borrowings	—		658,128		—		7,643		—		1.53		(7,531)		(112)		(7,643)
Long-term debt	1,203,054		2,581,232		33,851		50,645		3.75		2.54		(26,183)		9,389		(16,794)
Total interest-bearing liabilities	33,620,149		34,113,918		94,430		244,200		0.37		0.94		(60,313)		(89,457)		(149,770)
Non-interest-bearing deposits	14,885,880		11,374,121
Other liabilities	1,149,209		1,028,401
Shareholders' equity	5,193,108		5,052,181
Total liabilities and equity	$	54,848,346	$	51,568,621
Interest rate spread:									2.90	%	2.94	%
Net interest income - TE/margin(5)					$	1,142,935	$	1,129,419	3.02	%	3.20	%	$	87,739	$	(74,223)	$	13,516
Taxable equivalent adjustment					2,301		2,603
Net interest income, actual					$	1,140,634	$	1,126,816


Table 13 - Twelve Month Net Interest Income Sensitivity
	Estimated % Change in Net Interest Income as Compared to Unchanged Rates (for the next twelve months)

Change in Short-term Interest Rates (in bps)	September 30, 2021	December 31, 2020
+200	5.4%	6.8%
+100	2.5%	3.5%
-25	(0.2)%	(0.5)%


Table 14 - Reconciliation of Non-GAAP Financial Measures
	Three Months Ended				Nine Months Ended
(in thousands)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Adjusted non-interest revenue
Total non-interest revenue	$	114,955	$	114,411	$	332,997	$	391,752
Subtract/add: Investment securities (gains) losses, net	(962)		1,550		1,028		(76,594)
Subtract: Gain on sale and increase in fair value of private equity investments, net	—		(260)		—		(4,712)
Add/subtract: Fair value adjustment on non-qualified deferred compensation	97		(796)		(1,821)		(539)
Adjusted non-interest revenue	$	114,090	$	114,905	$	332,204	$	309,907

Adjusted non-interest expense
Total non-interest expense	$	267,032	$	316,655	$	804,697	$	877,076
Add/subtract: Earnout liability adjustments	243		—		(507)		(4,908)
Subtract: Goodwill impairment	—		(44,877)		—		(44,877)
Subtract: Restructuring charges	(319)		(2,882)		(1,265)		(8,924)
Subtract: Loss on early extinguishment of debt	—		(154)		—		(2,057)
Add/subtract: Fair value adjustment on non-qualified deferred compensation	97		(796)		(1,821)		(539)
Adjusted non-interest expense	$	267,053	$	267,946	$	801,104	$	815,771