| Fair Value Accounting |
Note 5 - Fair Value Accounting See "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 - Summary of Significant Accounting Policies" of Synovus' 2024 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. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | | December 31, 2024 | | (in thousands) | Level 1 | | Level 2 | | Level 3 | | Total Estimated Fair Value | | | Level 1 | | Level 2 | | Level 3 | | Total Estimated Fair Value | | Assets | | | | | | | | | | | | | | | | | | Trading securities: | | | | | | | | | | | | | | | | | | U.S. Treasury securities | $ | 4,000 | | | $ | — | | | $ | — | | | $ | 4,000 | | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | State and municipal securities | — | | | 59 | | | — | | | 59 | | | | — | | | 473 | | | — | | | 473 | | | Asset-backed securities | — | | | 11,312 | | | — | | | 11,312 | | | | — | | | 9,240 | | | — | | | 9,240 | | | Other investments | — | | | 104 | | | — | | | 104 | | | | — | | | — | | | — | | | — | | | Total trading securities | $ | 4,000 | | | $ | 11,475 | | | $ | — | | | $ | 15,475 | | | | $ | — | | | $ | 9,713 | | | $ | — | | | $ | 9,713 | | | Investment securities available for sale: | | | | | | | | | | | | | | | | | | U.S. Treasury securities | $ | 1,240,926 | | | $ | — | | | $ | — | | | $ | 1,240,926 | | | | $ | 1,212,742 | | | $ | — | | | $ | — | | | $ | 1,212,742 | | | U.S. Government agency securities | — | | | 29,711 | | | — | | | 29,711 | | | | — | | | 29,163 | | | — | | | 29,163 | | | Mortgage-backed securities issued by U.S. Government agencies | — | | | 1,456,888 | | | — | | | 1,456,888 | | | | — | | | 1,462,790 | | | — | | | 1,462,790 | | | Mortgage-backed securities issued by U.S. Government sponsored enterprises | — | | | 2,041,389 | | | — | | | 2,041,389 | | | | — | | | 2,034,035 | | | — | | | 2,034,035 | | | Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | — | | | 535,669 | | | — | | | 535,669 | | | | — | | | 550,201 | | | — | | | 550,201 | | | Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises | — | | | 2,485,074 | | | — | | | 2,485,074 | | | | — | | | 2,253,116 | | | — | | | 2,253,116 | | | Corporate debt securities and other debt securities | — | | | 9,167 | | | — | | | 9,167 | | | | — | | | 8,971 | | | — | | | 8,971 | | | Total investment securities available for sale | $ | 1,240,926 | | | $ | 6,557,898 | | | $ | — | | | $ | 7,798,824 | | | | $ | 1,212,742 | | | $ | 6,338,276 | | | $ | — | | | $ | 7,551,018 | | | Mortgage loans held for sale | $ | — | | | $ | 45,136 | | | $ | — | | | $ | 45,136 | | | | $ | — | | | $ | 33,448 | | | $ | — | | | $ | 33,448 | | | Other investments | — | | | — | | | 16,899 | | | 16,899 | | | | — | | | — | | | 14,831 | | | 14,831 | | | Mutual funds and mutual funds held in rabbi trusts | 69,686 | | | — | | | — | | | 69,686 | | | | 63,371 | | | — | | | — | | | 63,371 | | | | | | | | | | | | | | | | | | | | Derivative assets | — | | | 82,664 | | | — | | | 82,664 | | | | — | | | 83,895 | | | — | | | 83,895 | | | Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Mutual funds held in rabbi trusts | 54,318 | | | — | | | — | | | 54,318 | | | | 48,351 | | | — | | | — | | | 48,351 | | Derivative liabilities(1) | — | | | 134,644 | | | — | | | 134,644 | | | | — | | | 216,325 | | | — | | | 216,325 | | | | | | | | | | | | | | | | | | |
(1) Excludes from Level 3 the Visa derivative of $62 thousand and $64 thousand at June 30, 2025 and December 31, 2024, respectively. See "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 - Summary of Significant Accounting Policies" of Synovus' 2024 Form 10-K for discussion of fair value accounting related to this in the Derivative Instruments section. 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 instrument-specific credit risk. | | | | | | | | | | | | | Mortgage Loans Held for Sale | | | (in thousands) | As of June 30, 2025 | | As of December 31, 2024 | | Fair value | $ | 45,136 | | | $ | 33,448 | | | Unpaid principal balance | 43,589 | | | 32,770 | | | Fair value less aggregate unpaid principal balance | $ | 1,547 | | | $ | 678 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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) | 2025 | | 2024 | | 2025 | | 2024 | | | Mortgage loans held for sale | $ | 411 | | | $ | 32 | | | $ | 869 | | | $ | (774) | | | Mortgage banking income | | | | | | | | | | |
Activity for Level 3 Assets See "Part II - Item 8. Financial Statements and Supplementary Data - Note 12 - Fair Value Accounting" of Synovus' 2024 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 six months ended June 30, 2025 and 2024, 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 measured at fair value on a recurring basis. | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | (in thousands) | | | | Other Investments | | | | | | Beginning balance at March 31, 2025 | | | | $ | 15,350 | | | | | | | Total gains (losses) realized/unrealized: | | | | | | | | | | Included in earnings | | | | 469 | | | | | | | Additions | | | | 1,080 | | | | | | | | | | | | | | | | Ending balance at June 30, 2025 | | | | $ | 16,899 | | | | | | | Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at June 30, 2025 | | | | $ | 469 | | | | | | | | | | | | | Three Months Ended June 30, 2024 | | (in thousands) | | | | Other Investments | | | | | | Beginning balance at March 31, 2024 | | | | $ | 13,115 | | | | | | | Total gains (losses) realized/unrealized: | | | | | | | | | | Included in earnings | | | | 456 | | | | | | | Additions | | | | 852 | | | | | | | | | | | | | | | | Ending balance at June 30, 2024 | | | | $ | 14,423 | | | | | | | Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at June 30, 2024 | | | | $ | 456 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | (in thousands) | | | | Other Investments | | | | | | Beginning balance at December 31, 2024 | | | | $ | 14,831 | | | | | | | Total gains (losses) realized/unrealized: | | | | | | | | | | Included in earnings | | | | 442 | | | | | | | Additions | | | | 1,626 | | | | | | | | | | | | | | | | Ending balance at June 30, 2025 | | | | $ | 16,899 | | | | | | | Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at June 30, 2025 | | | | $ | 442 | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2024 | | (in thousands) | | | | Other Investments | | | | | | Beginning balance at December 31, 2023 | | | | $ | 12,560 | | | | | | | Total gains (losses) realized/unrealized: | | | | | | | | | | Included in earnings | | | | 435 | | | | | | | | | | | | | | | | Additions | | | | 1,428 | | | | | | | | | | | | | | | | Ending balance at June 30, 2024 | | | | $ | 14,423 | | | | | | | Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at June 30, 2024 | | | | $ | 435 | | | | | | | | | | | | | | |
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. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | Fair Value Adjustments for the | | | | (in thousands) | Level 1 | | Level 2 | | Level 3 | | | Three Months Ended June 30, 2025 | | Six Months Ended June 30, 2025 | | Loans(1) | $ | — | | | $ | — | | | $ | 42,313 | | | | $ | 14,461 | | | $ | 28,861 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2024 | | Fair Value Adjustments for the | | | | Level 1 | | Level 2 | | Level 3 | | | Three Months Ended June 30, 2024 | | Six Months Ended June 30, 2024 | | Loans(1) | $ | — | | | $ | — | | | $ | 26,995 | | | | $ | 22,160 | | | $ | 29,568 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Fair value adjustments represent charge-offs on collateral-dependent loans that were written down to fair value of collateral based on the appraised value less selling costs of the collateral. Fair Value of Financial Instruments The following tables present the carrying and estimated fair values of financial instruments at June 30, 2025 and December 31, 2024. 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' 2024 Form 10-K for a description of how fair value measurements are determined. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | (in thousands) | Carrying Value | | Fair Value | | Level 1 | | Level 2 | | Level 3 | | Financial assets | | | | | | | | | | | Total cash, cash equivalents, and restricted cash | $ | 2,852,316 | | | $ | 2,852,316 | | | $ | 2,852,316 | | | $ | — | | | $ | — | | | Trading securities | 15,475 | | | 15,475 | | | 4,000 | | | 11,475 | | | — | | | Investment securities held to maturity | 2,502,639 | | | 2,476,289 | | | — | | | 2,476,289 | | | — | | | Investment securities available for sale | 7,798,824 | | | 7,798,824 | | | 1,240,926 | | | 6,557,898 | | | — | | | Loans held for sale | 153,037 | | | 152,640 | | | — | | | 45,136 | | | 107,504 | | | Other investments | 16,899 | | | 16,899 | | | — | | | — | | | 16,899 | | | Mutual funds and mutual funds held in rabbi trusts | 69,686 | | | 69,686 | | | 69,686 | | | — | | | — | | Loans, net (1) | 43,071,885 | | | 42,231,633 | | | — | | | — | | | 42,231,633 | | | | | | | | | | | | | FRB and FHLB stock | 266,855 | | | 266,855 | | | — | | | 266,855 | | | — | | | Derivative assets | 82,664 | | | 82,664 | | | — | | | 82,664 | | | — | | | Financial liabilities | | | | | | | | | | | Non-interest-bearing deposits | $ | 11,658,129 | | | $ | 11,658,129 | | | $ | — | | | $ | 11,658,129 | | | $ | — | | | Non-time interest-bearing deposits | 29,727,720 | | | 29,727,720 | | | — | | | 29,727,720 | | | — | | | Time deposits | 8,539,158 | | | 8,503,962 | | | — | | | 8,503,962 | | | — | | Total deposits (2) | $ | 49,925,007 | | | $ | 49,889,811 | | | $ | — | | | $ | 49,889,811 | | | $ | — | | | Federal funds purchased, securities sold under repurchase agreements, and other short-term borrowings | 85,327 | | | 85,327 | | | 85,327 | | | — | | | — | | | | | | | | | | | | | | | | | | | | | | | Long-term debt | 3,909,478 | | | 3,923,662 | | | — | | | 3,923,662 | | | — | | | Mutual funds held in rabbi trusts | 54,318 | | | 54,318 | | | 54,318 | | | — | | | — | | Derivative liabilities(3) | 134,644 | | | 134,644 | | | — | | | 134,644 | | | — | | | | | | | | | | | |
(1) Synovus estimates the fair value of loans based on present value of the future cash flows using the interest rate that would be charged for a similar loan to a borrower with similar risk, adjusted for a discount based on the estimated time period to complete a sale transaction with a market participant. (2) The fair value of deposits with no stated maturity, such as non-interest-bearing demand, interest-bearing demand, money market, and savings accounts reflects the carrying amount which is payable on demand, as of the respective date, and may not align with other valuation methods or processes. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. (3) Excludes from Level 3 the Visa derivative of $62 thousand at June 30, 2025. See "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 - Summary of Significant Accounting Policies" of Synovus' 2024 Form 10-K for discussion of fair value accounting related to this in the Derivative Instruments section. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2024 | | (in thousands) | Carrying Value | | Fair Value | | Level 1 | | Level 2 | | Level 3 | | Financial assets | | | | | | | | | | | Total cash, cash equivalents, and restricted cash | $ | 2,993,987 | | | $ | 2,993,987 | | | $ | 2,993,987 | | | $ | — | | | $ | — | | | Trading securities | 9,713 | | | 9,713 | | | — | | | 9,713 | | | — | | | Investment securities held to maturity | 2,581,469 | | | 2,524,525 | | | — | | | 2,524,525 | | | — | | | Investment securities available for sale | 7,551,018 | | | 7,551,018 | | | 1,212,742 | | | 6,338,276 | | | — | | | Loans held for sale | 90,111 | | | 89,901 | | | — | | | 33,448 | | | 56,453 | | | Other investments | 14,831 | | | 14,831 | | | — | | | — | | | 14,831 | | | Mutual funds and mutual funds held in rabbi trusts | 63,371 | | | 63,371 | | | 63,371 | | | — | | | — | | Loans, net (1) | 42,122,183 | | | 41,014,425 | | | — | | | — | | | 41,014,425 | | | | | | | | | | | | | FRB and FHLB stock | 164,374 | | | 164,374 | | | — | | | 164,374 | | | — | | | Derivative assets | 83,895 | | | 83,895 | | | — | | | 83,895 | | | — | | | | | | | | | | | | | Financial liabilities | | | | | | | | | | | Non-interest-bearing deposits | $ | 11,596,119 | | | $ | 11,596,119 | | | $ | — | | | $ | 11,596,119 | | | $ | — | | | Non-time interest-bearing deposits | 29,883,378 | | | 29,883,378 | | | — | | | 29,883,378 | | | — | | | Time deposits | 9,615,862 | | | 9,587,417 | | | — | | | 9,587,417 | | | — | | Total deposits (2) | $ | 51,095,359 | | | $ | 51,066,914 | | | $ | — | | | $ | 51,066,914 | | | $ | — | | | Federal funds purchased, securities sold under repurchase agreements, and other short-term borrowings | 131,728 | | | 131,728 | | | 131,728 | | | — | | | — | | | | | | | | | | | | | | | | | | | | | | | Long-term debt | 1,733,109 | | | 1,748,723 | | | — | | | 1,748,723 | | | — | | | Mutual funds held in rabbi trusts | 48,351 | | | 48,351 | | | 48,351 | | | — | | | — | | Derivative liabilities(3) | 216,325 | | | 216,325 | | | — | | | 216,325 | | | — | | | | | | | | | | | |
(1) Synovus estimates the fair value of loans based on present value of the future cash flows using the interest rate that would be charged for a similar loan to a borrower with similar risk, adjusted for a discount based on the estimated time period to complete a sale transaction with a market participant. (2) The fair value of deposits with no stated maturity, such as non-interest-bearing demand, interest-bearing demand, money market, and savings accounts reflects the carrying amount which is payable on demand, as of the respective date, and may not align with other valuation methods or processes. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. (3) Excludes from Level 3 the Visa derivative of $64 thousand at December 31, 2024. See "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 - Summary of Significant Accounting Policies" of Synovus' 2024 Form 10-K for discussion of fair value accounting related to this in the Derivative Instruments section.
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