Business Wire | Oct 20, 2020 06:32AM EDT

Synovus Announces Earnings for the Third Quarter 2020

Oct. 20, 2020

COLUMBUS, Ga.--(BUSINESS WIRE)--Oct. 20, 2020--Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended September 30, 2020.

Third Quarter 2020 Highlights

* Diluted EPS of $0.56; adjusted diluted EPS of $0.89. Non-cash goodwill impairment charge of $44.9 million, or $0.30 per share, driven by lower rate forecast impact to mortgage reporting unit. * Period-end loan decline of $364.5 million or 1% sequentially; net increase of approximately $245 million excluding the impact of Paycheck Protection Program (PPP) loan payoffs and asset dispositions. As of September 30, slightly less than 1% of loans were receiving a principal and interest deferral, down from 15% in May. * Core transaction deposits (non-interest bearing, NOW/savings, and money market deposits excluding public and brokered funds) increased $1.56 billion or 5% sequentially. * Total deposit costs of 0.39% down 14 bps from the second quarter due to pricing diligence and product remixing. * Net interest income of $377.0 million was stable with the second quarter; net interest margin of 3.10% vs. 3.13% in 2Q20. * Non-interest revenue declined $59.1 million sequentially and increased $25.7 million compared to prior year; investment losses of $1.3 million compared to gains of $78.1 million in the second quarter. Adjusted non-interest revenue increased $20.3 million sequentially due primarily to higher net mortgage revenue and core banking fees. * Non-interest expense increased $32.5 million sequentially and $40.3 million compared to prior year. Adjusted non-interest expense declined $7.7 million sequentially due primarily to lower employment expense. * Provision for credit losses of $43.4 million; allowance for credit losses coverage ratio (to loans) of 1.68%, or 1.80% excluding PPP loans. * Credit quality metrics remain relatively stable, with the non-performing loan ratio and net charge-off ratio of 0.43% and 0.29%, respectively. * Preliminary CET1 and Total Risk Based Capital ratios improved to 9.30% and 13.16%, respectively.

Third Quarter Summary

Reported Adjusted

(dollars in 3Q20 2Q20 3Q19 3Q20 2Q20 3Q19thousands)

Net incomeavailable to $ 83,283 $ 84,901 $ 127,435 $ 131,364 $ 34,015 $ 149,732 commonshareholders

Dilutedearnings per 0.56 0.57 0.83 0.89 0.23 0.97 share

Total loans 39,549,847 39,914,297 36,417,826 N/A N/A N/A

Total 44,665,904 44,194,580 37,433,070 N/A N/A N/A deposits

Total 492,357 550,911 491,676 493,647 472,795 494,213 revenues

Return on 0.69 % 0.71 % 1.14 % 1.05 % 0.32 % 1.33 %avg assets

Return onavg common 7.28 7.48 11.36 11.48 3.00 13.35 equity

Return onavg tangible 8.46 8.69 13.19 13.24 3.60 15.46 commonequity

Net interest 3.10 3.13 3.69 3.08 3.11 3.42 margin

Efficiency 64.31 51.58 56.20 53.91 57.91 51.71 ratio

NCO ratio 0.29 0.24 0.22 N/A N/A N/A

NPA ratio 0.49 0.44 0.42 N/A N/A N/A

"The third quarter reflected strong operating performance, highlighted by growth in core transaction deposits of $1.6 billion and adjusted fee income growth of $20 million, as well as disciplined expense management, all contributing to improved profitability," said Kessel D. Stelling, Synovus Chairman and CEO. "We continued to strengthen our balance sheet, growing total risk-based capital by 46 basis points to 13.16 percent, the highest level since 2014. The responsiveness of team members and their unwavering support of customers - especially those managing through this challenging credit cycle - demonstrates the effectiveness of our local relationship delivery model and our ability to execute even in the face of uncertainty. These strengths, along with an improving economy, contributed to a solid third quarter and position us well for the fourth quarter and coming year."

Balance Sheet

Loans*



(dollars Linked Linked Year/in 3Q20 2Q20 Quarter Quarter 3Q19 Year/Year Yearmillions) Change % Change % Change Change

Commercial& $ 20,014.2 $ 19,938.3 $ 75.9 - % $ 16,418.3 $ 3,595.8 22 %industrial

Commercialreal 10,965.9 10,827.5 138.3 1 10,313.0 652.9 6 estate

Consumer 8,668.8 9,246.7 (577.9 ) (6 ) 9,709.2 (1,040.4 ) (11 )

Unearned (99.0 ) (98.2 ) (0.8 ) 1 (22.7 ) (76.3 ) 337 income

Total $ 39,549.8 $ 39,914.3 $ (364.5 ) (1 )% $ 36,417.8 $ 3,132.0 9 %loans

*Amounts may not total due to rounding

* Total loans ended the quarter at $39.55 billion, down $364.5 million or 1% sequentially. * Commercial and industrial (C&I) loans sequential growth of $75.9 million. PPP loan payoffs of approximately $77 million in the third quarter. C&I line utilization of 40% compared to 41% in the prior quarter. * Consumer loans decreased by $577.9 million sequentially, primarily as a result of approximately $467 million in strategic dispositions of out-of-footprint mortgages, student loans, and GreenSky loans.

Deposits*



Linked Linked Year/(dollars in millions) 3Q20 2Q20 Quarter Quarter 3Q19 Year/Year Year Change % Change % Change Change

Non-interest-bearing $ 12,129.8 $ 11,830.7 $ 299.1 3 % $ 8,970.2 $ 3,159.6 35 %DDA

Interest-bearing DDA 5,291.1 5,057.2 233.9 5 4,714.8 576.3 12

Money market 12,441.3 11,457.2 984.1 9 9,212.1 3,229.2 35

Savings 1,126.0 1,080.1 45.9 4 897.3 228.7 25

Public funds 5,791.9 5,347.4 444.6 8 3,795.3 1,996.6 53

Time deposits 3,976.5 5,131.7 (1,155.2 ) (23 ) 6,647.8 (2,671.3 ) (40 )

Brokered deposits 3,909.3 4,290.3 (381.0 ) (9 ) 3,195.5 713.8 22

Total deposits $ 44,665.9 $ 44,194.6 $ 471.3 1 % $ 37,433.1 $ 7,232.8 19 %

*Amounts may not total due to rounding

* Total deposits ended the quarter at $44.67 billion, up $471.3 million or 1% sequentially. * Core transaction deposits increased $1.56 billion or 5% sequentially. Broad-based growth in all categories including MMA, DDA, NOW, and savings deposits offset the $1.16 billion strategic decline in time deposits and $381.0 million decline in brokered deposits. * 3Q20 total deposit costs of 39 bps declined by 14 bps from 2Q20.

Income Statement Summary^**



(in Linked Linked Year/thousands, 3Q20 2Q20 Quarter Quarter 3Q19 Year/Year Yearexcept per Change % Change %share data) Change Change

Net interest $ 376,990 $ 376,566 $ 424 - % $ 402,097 $ (25,107 ) (6 )income %

Non-interest 114,411 173,484 (59,073 ) (34 ) 88,760 25,651 29 revenue

Non-interest 316,655 284,141 32,514 11 276,310 40,345 15 expense

Provisionfor credit 43,383 141,851 (98,468 ) (69 ) 27,562 15,821 57 losses

Income $ 131,363 $ 124,058 $ 7,305 6 % $ 186,985 $ (55,622 ) (30 )before taxes %

Income tax 39,789 30,866 8,923 29 51,259 (11,470 ) (22 )expense

Preferredstock 8,291 8,291 - - 8,291 - - dividends

Net incomeavailable to $ 83,283 $ 84,901 $ (1,618 ) (2 )% $ 127,435 $ (44,152 ) (35 )common %shareholders

Weightedaveragecommon 147,976 147,733 243 - % 154,043 (6,067 ) (4 )shares %outstanding,diluted

Dilutedearnings per $ 0.56 $ 0.57 $ (0.01 ) (2 ) $ 0.83 $ (0.26 ) (32 )share

Adjusteddiluted 0.89 0.23 0.66 286 0.97 (0.08 ) (8.7 )earnings pershare

** Amounts may not total due to rounding

Core Performance

* Total revenues were $492.4 million in the third quarter, down $58.6 million sequentially. * Net interest income of $377.0 million was stable from the second quarter, benefiting from favorable trends in deposit pricing and remixing. PPP fee accretion of $11.9 million, up $2.7 million from the second quarter. * Net interest margin was 3.10%, down 3 bps from the prior quarter. * Non-interest revenue decreased $59.1 million, or 34% sequentially, and increased $25.7 million, or 29% year-over-year. The sequential decrease was largely attributable to $69.4 million of securities gains as a result of repositioning the investment portfolio in the second quarter. * Adjusted non-interest revenue increased $20.3 million, or 21% sequentially, and $24.4 million, or 27% year-over-year. Net mortgage revenue increased $7.7 million and core banking fees increased $4.9 million sequentially. * Non-interest expense increased $32.5 million, or 11% sequentially. Adjusted non-interest expense decreased $7.7 million, or 3% sequentially. Non-cash goodwill impairment charge of $44.9 million driven by lower rate forecast impact to mortgage reporting unit. Employment expense decreased $4.6 million primarily as a result of lower commissions, lower headcount, and reduced COVID-related staffing expenses. * Provision for credit losses of $43.4 million; allowance for credit losses coverage ratio (to loans) of 1.68%, or 1.80% excluding PPP loans. * Tax expense was $39.8 million, an increase of $8.9 million driven by higher taxable pre-tax income. Year-to-date effective tax rate of 24.95% (impacted by non-deductible goodwill impairment).

Capital Ratios



3Q20 2Q20 3Q19

Common equity Tier 1 capital (CET1) ratio 9.30 % * 8.90 % 8.96 %

Tier 1 capital ratio 10.58 * 10.15 10.27

Total risk-based capital ratio 13.16 * 12.70 12.30

Tier 1 leverage ratio 8.49 * 8.38 9.02

Tangible common equity ratio 7.67 7.41 8.04

* Ratios are preliminary.

Capital

* CET1 ratio improved 40 bps during the quarter to 9.30% primarily due to earnings and settlement of balance sheet activities completed in the second quarter. * Total risk-based capital of 13.16% is the highest since 2014.

Third Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on October 20, 2020. The earnings call will be accompanied by a slide presentation. Shareholders and other interested parties may listen to this conference call via simultaneous Internet broadcast. For a link to the webcast, go to investor.synovus.com/event. The replay will be archived for 12 months and will be available 30-45 minutes after the call.

Synovus Financial Corp. is a financial services company based in Columbus, Georgia, with approximately $53 billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services through 288 branches in Alabama, Florida, Georgia, South Carolina, and Tennessee. Synovus Bank, a wholly owned subsidiary of Synovus, has been recognized as one of the country's "Most Reputable Banks" by American Banker and the Reputation Institute. Synovus is on the web at synovus.com, and on Twitter, Facebook, LinkedIn, and Instagram.

Forward-Looking Statements

This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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," "should," "predicts," "could," "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 banking industry and economy in general. These forward-looking statements include, among others, our expectations regarding our future operating and financial performance; our expectations regarding net interest income and net interest margin; expectations on our growth strategy, expense and revenue initiatives, capital management, balance sheet management, and future profitability; expectations on credit quality and performance; and the assumptions underlying our expectations. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Synovus to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and 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 press release. Many of these factors are beyond Synovus' ability to control or predict.

These forward-looking statements are based upon information presently known to Synovus' management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and uncertainties related to the impact of the COVID-19 pandemic on Synovus' assets, business, liquidity, financial condition, prospects and results of operations, and the risks and other factors set forth in Synovus' filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2019, under the captions "Cautionary Notice Regarding Forward-Looking Statements" and "Risk Factors" and in Synovus' quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as otherwise may be required by law.

Non-GAAP Financial Measures

The measures entitled adjusted non-interest revenue; adjusted non-interest expense; adjusted total revenues; adjusted tangible efficiency ratio; adjusted net income available to common shareholders; adjusted earnings per diluted share; 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 revenues; efficiency ratio-FTE; net income available to common shareholders; earnings per diluted common share; 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 revenues and adjusted non-interest revenue are measures used by management to evaluate total revenues and non-interest revenue exclusive of net investment securities gains (losses) and gains on sales and changes in the fair value of private equity investments, net. 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 earnings per diluted share, adjusted return on average assets, and adjusted return on average common equity are measures used by management to evaluate operating results exclusive of items that are not indicative of ongoing operations and impact period-to-period comparisons. Return on average tangible common equity and adjusted return on average tangible common equity are measures 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.

Reconciliation of Non-GAAP Financial Measures



(dollars in thousands) 3Q20 2Q20 3Q19

Adjusted non-interest revenue

Total non-interest revenue $ 114,411 $ 173,484 $ 88,760

Add/subtract: Investment securities 1,550 (69,409 ) 3,731 losses (gains), net

Subtract: Gain on sale and fair value (260 ) (8,707 ) (1,194 )increase of private equity investments

Adjusted non-interest revenue $ 115,701 $ 95,368 $ 91,297



Adjusted non-interest expense

Total non-interest expense $ 316,655 $ 284,141 $ 276,310

Subtract: Earnout liability adjustments - (4,908 ) (10,457 )

Subtract: Goodwill impairment (44,877 ) - -

Subtract: Merger-related expense - - (353 )

Subtract/add: Restructuring charges, (2,882 ) (2,822 ) 66 net

Subtract: Valuation adjustment to Visa - - (2,500 )derivative

Subtract: Loss on early extinguishment (154 ) - (4,592 )of debt, net

Adjusted non-interest expense $ 268,742 $ 276,411 $ 258,474



Reconciliation of Non-GAAP Financial Measures, continued



(dollars in thousands) 3Q20 2Q20 3Q19

Adjusted total revenues and adjusted tangible efficiency ratio

Adjusted non-interest expense $ 268,742 $ 276,411 $ 258,474

Subtract: Amortization of intangibles (2,640 ) (2,640 ) (2,901 )

Adjusted tangible non-interest expense $ 266,102 $ 273,771 $ 255,573



Net interest income $ 376,990 $ 376,566 $ 402,097

Add: Tax equivalent adjustment 956 861 819

Add: Total non-interest revenue 114,411 173,484 88,760

Total FTE revenues 492,357 550,911 491,676

Add/subtract: Investment securities 1,550 (69,409 ) 3,731 losses (gains), net

Subtract: Gain on sale and fair value (260 ) (8,707 ) (1,194 )increase of private equity investments

Adjusted total revenues $ 493,647 $ 472,795 $ 494,213

Efficiency ratio-FTE 64.31 % 51.58 % 56.20 %

Adjusted tangible efficiency ratio 53.91 57.91 51.71

Adjusted return on average assets

Net income

$

91,574

$

93,192

$

135,726

Add: Income tax expense, net related to State Tax Reform

-

-

4,402

Add: Earnout liability adjustments

-

4,908

10,457

Add: Goodwill impairment

44,877

-

-

Add: Merger-related expense

-

-

353

Add/subtract: Restructuring charges, net

2,882

2,822

(66

)

Add: Valuation adjustment to Visa derivative

-

-

2,500

Add: Loss on early extinguishment of debt, net

154

-

4,592

Add/subtract: Investment securities losses (gains), net

1,550

(69,409

)

3,731

Subtract: Gain on sale and fair value increase of private equity investments

(260

)

(8,707

)

(1,194

)

Subtract/add: Tax effect of adjustments

(1,122

)

19,500

(2,478

)

Adjusted net income

$

139,655

$

42,306

$

158,023

Net income annualized

$

364,305

$

374,816

$

538,478

Adjusted net income annualized

$

555,584

$

170,154

$

626,939

Total average assets

$

53,138,334

$

52,853,685

$

47,211,026

Return on average assets

0.69

%

0.71

%

1.14

%

Adjusted return on average assets

1.05

0.32

1.33

Reconciliation of Non-GAAP Financial Measures, continued

(dollars in thousands)

3Q20

2Q20

3Q19

Adjusted net income available to common shareholders and adjusted net income per common share, diluted

Net income available to common shareholders

$

83,283

$

84,901

$

127,435

Add: Income tax expense, net related to State Tax Reform

-

-

4,402

Add: Earnout liability adjustments

-

4,908

10,457

Add: Goodwill impairment

44,877

-

-

Add: Merger-related expense

-

-

353

Add/subtract: Restructuring charges, net

2,882

2,822

(66

)

Add: Valuation adjustment to Visa derivative

-

-

2,500

Add: Loss on early extinguishment of debt, net

154

-

4,592

Add/subtract: Investment securities losses (gains), net

1,550

(69,409

)

3,731

Subtract: Gain on sale and fair value increase of private equity investments

(260

)

(8,707

)

(1,194

)

Subtract/add: Tax effect of adjustments

(1,122

)

19,500

(2,478

)

Adjusted net income available to common shareholders

$

131,364

$

34,015

$

149,732

Weighted average common shares outstanding, diluted

147,976

147,733

154,043

Net income per common share, diluted

$

0.56

$

0.57

$

0.83

Adjusted net income per common share, diluted

0.89

0.23

0.97

Adjusted return on average assets

Net income $ 91,574 $ 93,192 $ 135,726

Add: Income tax expense, net - - 4,402 related to State Tax Reform

Add: Earnout liability - 4,908 10,457 adjustments

Add: Goodwill impairment 44,877 - -

Add: Merger-related expense - - 353

Add/subtract: Restructuring 2,882 2,822 (66 )charges, net

Add: Valuation adjustment to - - 2,500 Visa derivative

Add: Loss on early 154 - 4,592 extinguishment of debt, net

Add/subtract: Investment 1,550 (69,409 ) 3,731 securities losses (gains), net

Subtract: Gain on sale andfair value increase of private (260 ) (8,707 ) (1,194 )equity investments

Subtract/add: Tax effect of (1,122 ) 19,500 (2,478 )adjustments

Adjusted net income $ 139,655 $ 42,306 $ 158,023

Net income annualized $ 364,305 $ 374,816 $ 538,478

Adjusted net income annualized $ 555,584 $ 170,154 $ 626,939

Total average assets $ 53,138,334 $ 52,853,685 $ 47,211,026

Return on average assets 0.69 % 0.71 % 1.14 %

Adjusted return on average 1.05 0.32 1.33 assets





Reconciliation of Non-GAAP Financial Measures, continued



(dollars in thousands) 3Q20 2Q20 3Q19

Adjusted net income availableto common shareholders and adjusted net income per commonshare, diluted

Net income available to common $ 83,283 $ 84,901 $ 127,435 shareholders

Add: Income tax expense, net - - 4,402 related to State Tax Reform

Add: Earnout liability - 4,908 10,457 adjustments

Add: Goodwill impairment 44,877 - -

Add: Merger-related expense - - 353

Add/subtract: Restructuring 2,882 2,822 (66 )charges, net

Add: Valuation adjustment to - - 2,500 Visa derivative

Add: Loss on early 154 - 4,592 extinguishment of debt, net

Add/subtract: Investment 1,550 (69,409 ) 3,731 securities losses (gains), net

Subtract: Gain on sale andfair value increase of private (260 ) (8,707 ) (1,194 )equity investments

Subtract/add: Tax effect of (1,122 ) 19,500 (2,478 )adjustments

Adjusted net income available $ 131,364 $ 34,015 $ 149,732 to common shareholders

Weighted average common shares 147,976 147,733 154,043 outstanding, diluted

Net income per common share, $ 0.56 $ 0.57 $ 0.83 diluted

Adjusted net income per common 0.89 0.23 0.97 share, diluted

Reconciliation of Non-GAAP Financial Measures, continued

(dollars in thousands)

3Q20

2Q20

3Q19

Adjusted return on average common equity, return on average tangible common equity, and adjusted return on average tangible common equity

Net income available to common shareholders

$

83,283

$

84,901

$

127,435

Add: Income tax expense, net related to State Tax Reform

-

-

4,402

Add: Earnout liability adjustments

-

4,908

10,457

Add: Goodwill impairment

44,877

-

-

Add: Merger-related expense

-

-

353

Add/subtract: Restructuring charges, net

2,882

2,822

(66

)

Add: Valuation adjustment to Visa derivative

-

-

2,500

Add: Loss on early extinguishment of debt, net

154

-

4,592

Add/subtract: Investment securities losses (gains), net

1,550

(69,409

)

3,731

Subtract: Gain on sale and fair value increase of private equity investments

(260

)

(8,707

)

(1,194

)

Subtract/add: Tax effect of adjustments

(1,122

)

19,500

(2,478

)

Adjusted net income available to common shareholders

$

131,364

$

34,015

$

149,732

Adjusted net income available to common shareholders annualized

$

522,600

$

136,808

$

594,045

Add: Amortization of intangibles

7,782

7,868

8,632

Adjusted net income available to common shareholders excluding amortization of intangibles annualized

$

530,382

$

144,676

$

602,677

Net income available to common shareholders annualized

$

331,322

$

341,470

$

505,585

Add: Amortization of intangibles

7,782

7,868

8,632

Net income available to common shareholders excluding amortization of intangibles annualized

$

339,104

$

349,338

$

514,217

Total average shareholders' equity less preferred stock

$

4,553,159

$

4,567,254

$

4,450,301

Subtract: Goodwill

(497,267

)

(497,267

)

(492,320

)

Subtract: Other intangible assets, net

(49,075

)

(51,667

)

(60,278

)

Total average tangible shareholders' equity less preferred stock

$

4,006,817

$

4,018,320

$

3,897,703

Return on average common equity

7.28

%

7.48

%

11.36

%

Adjusted return on average common equity

11.48

3.00

13.35

Return on average tangible common equity

8.46

8.69

13.19

Adjusted return on average tangible common equity

13.24

3.60

15.46

Reconciliation of Non-GAAP Financial Measures, continued



(dollars in thousands) 3Q20 2Q20 3Q19



Adjusted return on average commonequity, return on averagetangible common equity, and adjusted return on averagetangible common equity

Net income available to common $ 83,283 $ 84,901 $ 127,435 shareholders

Add: Income tax expense, net - - 4,402 related to State Tax Reform

Add: Earnout liability - 4,908 10,457 adjustments

Add: Goodwill impairment 44,877 - -

Add: Merger-related expense - - 353

Add/subtract: Restructuring 2,882 2,822 (66 )charges, net

Add: Valuation adjustment to Visa - - 2,500 derivative

Add: Loss on early extinguishment 154 - 4,592 of debt, net

Add/subtract: Investment 1,550 (69,409 ) 3,731 securities losses (gains), net

Subtract: Gain on sale and fairvalue increase of private equity (260 ) (8,707 ) (1,194 )investments

Subtract/add: Tax effect of (1,122 ) 19,500 (2,478 )adjustments

Adjusted net income available to $ 131,364 $ 34,015 $ 149,732 common shareholders



Adjusted net income available to $ 522,600 $ 136,808 $ 594,045 common shareholders annualized

Add: Amortization of intangibles 7,782 7,868 8,632

Adjusted net income available tocommon shareholders excluding $ 530,382 $ 144,676 $ 602,677 amortization of intangiblesannualized



Net income available to common $ 331,322 $ 341,470 $ 505,585 shareholders annualized

Add: Amortization of intangibles 7,782 7,868 8,632

Net income available to commonshareholders excluding $ 339,104 $ 349,338 $ 514,217 amortization of intangiblesannualized



Total average shareholders' $ 4,553,159 $ 4,567,254 $ 4,450,301 equity less preferred stock

Subtract: Goodwill (497,267 ) (497,267 ) (492,320 )

Subtract: Other intangible (49,075 ) (51,667 ) (60,278 )assets, net

Total average tangibleshareholders' equity less $ 4,006,817 $ 4,018,320 $ 3,897,703 preferred stock

Return on average common equity 7.28 % 7.48 % 11.36 %

Adjusted return on average common 11.48 3.00 13.35 equity

Return on average tangible common 8.46 8.69 13.19 equity

Adjusted return on average 13.24 3.60 15.46 tangible common equity

Reconciliation of Non-GAAP Financial Measures, continued

(dollars in thousands)

September 30, 2020

June 30,2020

September 30, 2019

Tangible common equity ratio

Total assets

$

53,040,538

$

54,121,989

$

47,661,182

Subtract: Goodwill

(452,390

)

(497,267

)

(487,865

)

Subtract: Other intangible assets, net

(47,752

)

(50,392

)

(58,572

)

Tangible assets

$

52,540,396

$

53,574,330

$

47,114,745

Total shareholders' equity

$

5,064,542

$

5,052,968

$

4,868,838

Subtract: Goodwill

(452,390

)

(497,267

)

(487,865

)

Subtract: Other intangible assets, net

(47,752

)

(50,392

)

(58,572

)

Subtract: Preferred Stock, no par value

(537,145

)

(537,145

)

(536,550

)

Tangible common equity

$

4,027,255

$

3,968,164

$

3,785,851

Total shareholders' equity to total assets ratio

9.55

%

9.34

%

10.22

%

Tangible common equity ratio

7.67

7.41

8.04

Reconciliation of Non-GAAP Financial Measures, continued



(dollars in thousands) September 30, June 30, September 30, 2020 2020 2019



Tangible common equity ratio

Total assets $ 53,040,538 $ 54,121,989 $ 47,661,182

Subtract: Goodwill (452,390 ) (497,267 ) (487,865 )

Subtract: Other intangible (47,752 ) (50,392 ) (58,572 )assets, net

Tangible assets $ 52,540,396 $ 53,574,330 $ 47,114,745



Total shareholders' equity $ 5,064,542 $ 5,052,968 $ 4,868,838

Subtract: Goodwill (452,390 ) (497,267 ) (487,865 )

Subtract: Other intangible (47,752 ) (50,392 ) (58,572 )assets, net

Subtract: Preferred Stock, no (537,145 ) (537,145 ) (536,550 )par value

Tangible common equity $ 4,027,255 $ 3,968,164 $ 3,785,851

Total shareholders' equity to 9.55 % 9.34 % 10.22 %total assets ratio

Tangible common equity ratio 7.67 7.41 8.04

INCOME STATEMENT DATA

(Unaudited)

(Dollars in thousands, except per share data)

Third Quarter

20 vs '19

2020

2019

% Change

Interest income

$

1,371,016

$

1,544,385

(11

)%

Interest expense

244,200

347,850

(30

)

Net interest income

1,126,816

1,196,535

(6

)

Provision for credit losses

343,956

63,250

444

Net interest income after provision for credit losses

782,860

1,133,285

(31

)

Non-interest revenue:

Service charges on deposit accounts

54,069

65,805

(18

)

Fiduciary and asset management fees

46,009

42,743

8

Card fees

30,959

34,334

(10

)

Brokerage revenue

32,987

30,502

8

Mortgage banking income

66,987

23,313

187

Capital markets income

22,984

21,557

7

Income from bank-owned life insurance

21,572

15,605

38

Investment securities gains/(losses), net

76,594

(5,502

)

nm

Gain on sale and fair value increase, net, on private equity investments

4,712

3,507

nm

Other non-interest revenue

34,879

26,081

34

Total non-interest revenue

391,752

257,945

52

Non-interest expense:

Salaries and other personnel expense

464,268

424,952

9

Net occupancy, equipment, and software expense

125,475

119,262

5

Third-party processing and other services

63,466

55,403

15

Professional fees

39,358

25,379

55

FDIC insurance and other regulatory fees

18,922

21,872

(13

)

Amortization of intangibles

7,920

8,702

(9

)

Goodwill impairment

44,877

-

nm

Merger-related expense

-

57,493

nm

Earnout liability adjustments

4,908

10,457

nm

Loss on early extinguishment of debt, net

2,057

4,592

nm

Valuation adjustment to Visa derivative

-

2,500

nm

Restructuring charges

8,924

(29

)

nm

Other operating expenses

96,901

102,264

(5

)

Total non-interest expense

877,076

832,847

5

Income before income taxes

297,536

558,383

(47

)

Income tax expense

74,250

146,287

(49

)

Net income

223,286

412,096

(46

)

Less: Preferred stock dividends

24,872

14,591

70

Net income available to common shareholders

$

198,414

$

397,505

(50

)%

Net income per common share, basic

$

1.35

$

2.53

(47

)%

Net income per common share, diluted

1.34

2.51

(47

)

Cash dividends declared per common share

0.99

0.90

10

Return on average assets *

0.58

%

1.18

%

(60)

bps

Return on average common equity *

5.87

12.09

(622

)

Weighted average common shares outstanding, basic

147,304

156,819

(6

)%

Weighted average common shares outstanding, diluted

148,037

158,595

(7

)

nm - not meaningful

bps - basis points

* - ratios are annualized





INCOME STATEMENT DATA

(Unaudited)



(Dollars in thousands, except per Thirdshare data) Quarter

20 vs '19

2020 2019 % Change



Interest income $ 1,371,016 $ 1,544,385 (11 )%

Interest expense 244,200 347,850 (30 )



Net interest income 1,126,816 1,196,535 (6 )

Provision for credit losses 343,956 63,250 444



Net interest income after provision 782,860 1,133,285 (31 )for credit losses



Non-interest revenue:

Service charges on deposit accounts 54,069 65,805 (18 )

Fiduciary and asset management fees 46,009 42,743 8

Card fees 30,959 34,334 (10 )

Brokerage revenue 32,987 30,502 8

Mortgage banking income 66,987 23,313 187

Capital markets income 22,984 21,557 7

Income from bank-owned life insurance 21,572 15,605 38

Investment securities gains/(losses), 76,594 (5,502 ) nm net

Gain on sale and fair value increase, 4,712 3,507 nm net, on private equity investments

Other non-interest revenue 34,879 26,081 34



Total non-interest revenue 391,752 257,945 52



Non-interest expense:

Salaries and other personnel expense 464,268 424,952 9

Net occupancy, equipment, and software 125,475 119,262 5 expense

Third-party processing and other 63,466 55,403 15 services

Professional fees 39,358 25,379 55

FDIC insurance and other regulatory 18,922 21,872 (13 )fees

Amortization of intangibles 7,920 8,702 (9 )

Goodwill impairment 44,877 - nm

Merger-related expense - 57,493 nm

Earnout liability adjustments 4,908 10,457 nm

Loss on early extinguishment of debt, 2,057 4,592 nm net

Valuation adjustment to Visa - 2,500 nm derivative

Restructuring charges 8,924 (29 ) nm

Other operating expenses 96,901 102,264 (5 )



Total non-interest expense 877,076 832,847 5



Income before income taxes 297,536 558,383 (47 )

Income tax expense 74,250 146,287 (49 )



Net income 223,286 412,096 (46 )



Less: Preferred stock dividends 24,872 14,591 70



Net income available to common $ 198,414 $ 397,505 (50 )%shareholders



Net income per common share, basic $ 1.35 $ 2.53 (47 )%



Net income per common share, diluted 1.34 2.51 (47 )



Cash dividends declared per common 0.99 0.90 10 share



Return on average assets * 0.58 % 1.18 % (60) bps

Return on average common equity * 5.87 12.09 (622 )



Weighted average common shares 147,304 156,819 (6 )%outstanding, basic

Weighted average common shares 148,037 158,595 (7 )outstanding, diluted



nm - not meaningful

bps - basis points

* - ratios are annualized

Synovus

INCOME STATEMENT DATA

(Unaudited)

(Dollars in thousands, except per share data)

2020

2019

Third Quarter

Third Quarter

Second Quarter

First Quarter

Fourth Quarter

Third Quarter

20 vs '19

% Change

Interest income

$

435,550

451,569

483,897

506,253

523,415

(17

)%

Interest expense

58,560

75,003

110,637

106,985

121,318

(52

)

Net interest income

376,990

376,566

373,260

399,268

402,097

(6

)

Provision for credit losses

43,383

141,851

158,722

24,470

27,562

57

Net interest income after provision for credit losses

333,607

234,715

214,538

374,798

374,535

(11

)

Non-interest revenue:

Service charges on deposit accounts

17,813

15,567

20,689

22,385

22,952

(22

)

Fiduciary and asset management fees

15,885

14,950

15,174

15,645

14,686

8

Card fees

10,823

9,186

10,950

11,325

12,297

(12

)

Brokerage revenue

10,604

9,984

12,398

11,106

11,071

(4

)

Mortgage banking income

31,229

23,530

12,227

9,287

10,351

202

Capital markets income

5,690

6,050

11,243

8,972

7,396

(23

)

Income from bank-owned life insurance

7,778

7,756

6,038

5,620

5,139

51

Investment securities (losses)/gains, net

(1,550

)

69,409

8,734

(2,157

)

(3,731

)

nm

Gain on sale and fair value increase/(decrease) on private equity investments

260

8,707

(4,255

)

8,100

1,194

nm

Other non-interest revenue

15,879

8,345

10,659

7,672

7,405

114

Total non-interest revenue

114,411

173,484

103,857

97,955

88,760

29

Non-interest expense:

Salaries and other personnel expense

154,994

159,597

149,678

145,084

142,516

9

Net occupancy, equipment, and software expense

41,554

41,727

42,194

42,644

41,017

1

Third-party processing and other services

20,620

21,366

21,480

20,293

18,528

11

Professional fees

13,377

15,305

10,675

9,921

9,719

38

FDIC insurance and other regulatory fees

6,793

6,851

5,278

9,825

7,242

(6

)

Amortization of intangibles

2,640

2,640

2,640

2,901

2,901

(9

)

Goodwill impairment

44,877

-

-

-

-

nm

Merger-related expense

-

-

-

(913

)

353

nm

Earnout liability adjustments

-

4,908

-

-

10,457

nm

Loss on early extinguishment of debt, net

154

-

1,904

-

4,592

nm

Valuation adjustment to Visa derivative

-

-

-

1,111

2,500

nm

Restructuring charges

2,882

2,822

3,220

1,259

(66

)

nm

Other operating expenses

28,764

28,925

39,210

33,996

36,551

(21

)

Total non-interest expense

316,655

284,141

276,279

266,121

276,310

15

Income before income taxes

131,363

124,058

42,116

206,632

186,985

(30

)

Income tax expense

39,789

30,866

3,595

54,948

51,259

(22

)

Net income

91,574

93,192

38,521

151,684

135,726

(33

)

Less: Preferred stock dividends

8,291

8,291

8,291

8,291

8,291

-

Net income available to common shareholders

$

83,283

84,901

30,230

143,393

127,435

(35

)%

Net income per common share, basic

$

0.57

0.58

0.21

0.98

0.84

(32

)%

Net income per common share, diluted

0.56

0.57

0.20

0.97

0.83

(32

)

Cash dividends declared per common share

0.33

0.33

0.33

0.30

0.30

10

Return on average assets *

0.69

%

0.71

0.32

1.27

1.14

(45)

bps

Return on average common equity *

7.28

7.48

2.75

13.08

11.36

(408

)

Weighted average common shares outstanding, basic

147,314

147,288

147,311

146,948

152,238

(3

)%

Weighted average common shares outstanding, diluted

147,976

147,733

148,401

148,529

154,043

(4

)

nm - not meaningful

bps - basis points

* - ratios are annualized

Synovus



INCOME STATEMENT DATA

(Unaudited)



(Dollars in thousands, 2020 2019 Third except per Quarter share data)

20 vs Third Second First Fourth Third '19 Quarter Quarter Quarter Quarter Quarter % Change



Interest $ 435,550 451,569 483,897 506,253 523,415 (17 )% income

Interest 58,560 75,003 110,637 106,985 121,318 (52 ) expense



Net interest 376,990 376,566 373,260 399,268 402,097 (6 ) income

Provision for 43,383 141,851 158,722 24,470 27,562 57 credit losses



Net interest income after 333,607 234,715 214,538 374,798 374,535 (11 ) provision for credit losses



Non-interest revenue:

Service charges on 17,813 15,567 20,689 22,385 22,952 (22 ) deposit accounts

Fiduciary and asset 15,885 14,950 15,174 15,645 14,686 8 management fees

Card fees 10,823 9,186 10,950 11,325 12,297 (12 )

Brokerage 10,604 9,984 12,398 11,106 11,071 (4 ) revenue

Mortgage 31,229 23,530 12,227 9,287 10,351 202 banking income

Capital 5,690 6,050 11,243 8,972 7,396 (23 ) markets income

Income from bank-owned 7,778 7,756 6,038 5,620 5,139 51 life insurance

Investment securities (1,550 ) 69,409 8,734 (2,157 ) (3,731 ) nm (losses)/ gains, net

Gain on sale and fair value increase/ 260 8,707 (4,255 ) 8,100 1,194 nm (decrease) on private equity investments

Other non-interest 15,879 8,345 10,659 7,672 7,405 114 revenue



Total non-interest 114,411 173,484 103,857 97,955 88,760 29 revenue



Non-interest expense:

Salaries and other 154,994 159,597 149,678 145,084 142,516 9 personnel expense

Net occupancy, equipment, and 41,554 41,727 42,194 42,644 41,017 1 software expense

Third-party processing and 20,620 21,366 21,480 20,293 18,528 11 other services

Professional 13,377 15,305 10,675 9,921 9,719 38 fees

FDIC insurance and other 6,793 6,851 5,278 9,825 7,242 (6 ) regulatory fees

Amortization 2,640 2,640 2,640 2,901 2,901 (9 ) of intangibles

Goodwill 44,877 - - - - nm impairment

Merger-related - - - (913 ) 353 nm expense

Earnout liability - 4,908 - - 10,457 nm adjustments

Loss on early extinguishment 154 - 1,904 - 4,592 nm of debt, net

Valuation adjustment to - - - 1,111 2,500 nm Visa derivative

Restructuring 2,882 2,822 3,220 1,259 (66 ) nm charges

Other operating 28,764 28,925 39,210 33,996 36,551 (21 ) expenses



Total non-interest 316,655 284,141 276,279 266,121 276,310 15 expense



Income before 131,363 124,058 42,116 206,632 186,985 (30 ) income taxes

Income tax 39,789 30,866 3,595 54,948 51,259 (22 ) expense



Net income 91,574 93,192 38,521 151,684 135,726 (33 )



Less: Preferred 8,291 8,291 8,291 8,291 8,291 - stock dividends



Net income available to $ 83,283 84,901 30,230 143,393 127,435 (35 )% common shareholders



Net income per common share, $ 0.57 0.58 0.21 0.98 0.84 (32 )% basic



Net income per common share, 0.56 0.57 0.20 0.97 0.83 (32 ) diluted



Cash dividends declared per 0.33 0.33 0.33 0.30 0.30 10 common share



Return on average assets 0.69 % 0.71 0.32 1.27 1.14 (45) bps *

Return on average common 7.28 7.48 2.75 13.08 11.36 (408 ) equity *



Weighted average common shares 147,314 147,288 147,311 146,948 152,238 (3 )% outstanding, basic

Weighted average common shares 147,976 147,733 148,401 148,529 154,043 (4 ) outstanding, diluted



nm - not meaningful

bps - basis points

* - ratios are annualized

Synovus

BALANCE SHEET DATA

September 30, 2020

December 31, 2019

September 30, 2019

(Unaudited)

(In thousands, except share data)

ASSETS

Cash and due from banks

$

578,026

$

535,846

$

611,496

Interest-bearing funds with Federal Reserve Bank

1,266,313

553,390

480,913

Interest earning deposits with banks

20,929

20,635

20,086

Federal funds sold and securities purchased under resale agreements

120,095

77,047

69,975

Cash and cash equivalents

1,985,363

1,186,918

1,182,470

Investment securities available for sale, at fair value

7,566,525

6,778,670

6,892,162

Loans held for sale ($285,899, $115,173, and $129,415 measured at fair value, respectively)

745,160

115,173

129,415

Loans, net of deferred fees and costs

39,549,847

37,162,450

36,417,826

Allowance for loan losses

(603,800

)

(281,402

)

(265,013

)

Loans, net

38,946,047

36,881,048

36,152,813

Cash surrender value of bank-owned life insurance

1,044,046

775,665

771,458

Premises and equipment, net

471,208

493,940

487,053

Goodwill

452,390

497,267

487,865

Other intangible assets, net

47,752

55,671

58,572

Other assets

1,782,047

1,418,930

1,499,374

Total assets

$

53,040,538

$

48,203,282

$

47,661,182

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Deposits:

Non-interest-bearing deposits

$

13,075,081

$

9,439,485

$

9,586,148

Interest-bearing deposits

31,590,823

28,966,019

27,846,922

Total deposits

44,665,904

38,405,504

37,433,070

Federal funds purchased and securities sold under repurchase agreements

202,344

165,690

197,419

Other short-term borrowings

400,000

1,753,560

2,233,593

Long-term debt

1,628,385

2,153,897

2,153,600

Other liabilities

1,079,363

782,941

774,662

Total liabilities

47,975,996

43,261,592

42,792,344

Shareholders' equity:

Preferred stock - no par value. Authorized 100,000,000 shares; issued 22,000,000

537,145

537,145

536,550

Common stock - $1.00 par value. Authorized 342,857,143 shares; issued 167,410,950, 166,800,623, and 166,201,048; outstanding 147,317,923, 147,157,596, and 147,594,000

167,411

166,801

166,201

Additional paid-in capital

3,832,142

3,819,336

3,801,158

Treasury stock, at cost - 20,093,027, 19,643,027, and 18,607,048 shares

(731,806

)

(715,560

)

(680,081

)

Accumulated other comprehensive income, net

174,914

65,641

75,933

Retained earnings

1,084,736

1,068,327

969,077

Total shareholders' equity

5,064,542

4,941,690

4,868,838

Total liabilities and shareholders' equity

$

53,040,538

$

48,203,282

$

47,661,182

Synovus





BALANCE SHEET DATA September 30, December 31, September 30, 2020 2019 2019



(Unaudited)



(In thousands, except share data)



ASSETS

Cash and due from banks $ 578,026 $ 535,846 $ 611,496

Interest-bearing funds 1,266,313 553,390 480,913 with Federal Reserve Bank

Interest earning deposits 20,929 20,635 20,086 with banks

Federal funds sold and securities purchased under 120,095 77,047 69,975 resale agreements

Cash and cash equivalents 1,985,363 1,186,918 1,182,470



Investment securities available for sale, at 7,566,525 6,778,670 6,892,162 fair value

Loans held for sale ($285,899, $115,173, and 745,160 115,173 129,415 $129,415 measured at fair value, respectively)



Loans, net of deferred 39,549,847 37,162,450 36,417,826 fees and costs

Allowance for loan losses (603,800 ) (281,402 ) (265,013 )

Loans, net 38,946,047 36,881,048 36,152,813



Cash surrender value of 1,044,046 775,665 771,458 bank-owned life insurance

Premises and equipment, 471,208 493,940 487,053 net

Goodwill 452,390 497,267 487,865

Other intangible assets, 47,752 55,671 58,572 net

Other assets 1,782,047 1,418,930 1,499,374

Total assets $ 53,040,538 $ 48,203,282 $ 47,661,182



LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Deposits:

Non-interest-bearing $ 13,075,081 $ 9,439,485 $ 9,586,148 deposits

Interest-bearing deposits 31,590,823 28,966,019 27,846,922



Total deposits 44,665,904 38,405,504 37,433,070



Federal funds purchased and securities sold under 202,344 165,690 197,419 repurchase agreements

Other short-term 400,000 1,753,560 2,233,593 borrowings

Long-term debt 1,628,385 2,153,897 2,153,600

Other liabilities 1,079,363 782,941 774,662

Total liabilities 47,975,996 43,261,592 42,792,344



Shareholders' equity:

Preferred stock - no par value. Authorized 537,145 537,145 536,550 100,000,000 shares; issued 22,000,000

Common stock - $1.00 par value. Authorized 342,857,143 shares; issued 167,410,950, 166,800,623, 167,411 166,801 166,201 and 166,201,048; outstanding 147,317,923, 147,157,596, and 147,594,000

Additional paid-in capital 3,832,142 3,819,336 3,801,158

Treasury stock, at cost - 20,093,027, 19,643,027, (731,806 ) (715,560 ) (680,081 ) and 18,607,048 shares

Accumulated other 174,914 65,641 75,933 comprehensive income, net

Retained earnings 1,084,736 1,068,327 969,077

Total shareholders' equity 5,064,542 4,941,690 4,868,838

Total liabilities and $ 53,040,538 $ 48,203,282 $ 47,661,182 shareholders' equity

Synovus

AVERAGE BALANCES AND YIELDS/RATES (1)

(Unaudited)

2020

2019

(Dollars in thousands)

Third

Second

First

Fourth

Third

Quarter

Quarter

Quarter

Quarter

Quarter

Interest Earning Assets

Investment securities (2) (4)

$

7,227,400

6,618,533

6,680,047

6,696,768

6,831,036

Yield

2.39

%

2.72

3.09

3.12

3.14

Trading account assets (5)

$

5,391

6,173

6,306

7,986

5,519

Yield

1.69

%

2.19

2.70

2.69

4.01

Commercial loans (3) (4)

$

30,730,135

30,236,919

27,607,343

26,698,202

26,567,719

Yield

3.80

%

3.95

4.57

4.82

5.09

Consumer loans (3)

$

9,032,437

9,899,172

9,985,702

9,809,832

9,633,603

Yield

4.08

%

4.34

4.60

5.07

5.08

Allowance for loan losses

$

(591,098

)

(498,545

)

(368,033

)

(269,052

)

(258,024

)

Loans, net (3)

$

39,171,474

39,637,546

37,225,012

36,238,982

35,943,298

Yield

3.92

%

4.08

4.62

4.93

5.13

Mortgage loans held for sale

$

244,952

221,157

86,415

117,909

99,556

Yield

2.92

%

3.09

3.67

3.77

3.93

Other loans held for sale

$

493,940

19,246

-

-

475

Yield

3.61

%

4.19

-

-

-

Federal funds sold, due from Federal Reserve Bank, and other short-term investments

$

1,265,880

1,709,086

652,130

514,635

513,160

Yield

0.11

%

0.11

1.02

1.71

2.08

Federal Home Loan Bank and Federal Reserve Bank Stock (5)

$

200,923

247,801

284,082

278,586

254,994

Yield

2.73

%

3.60

3.38

2.85

3.85

Total interest earning assets

$

48,609,960

48,459,542

44,933,992

43,854,866

43,648,038

Yield

3.58

%

3.75

4.33

4.60

4.78

Interest-Bearing Liabilities

Interest-bearing demand deposits

$

7,789,095

7,260,940

6,445,986

6,381,282

6,138,810

Rate

0.19

%

0.21

0.51

0.60

0.69

Money Market accounts

$

13,272,972

12,238,479

11,548,014

10,526,296

10,138,783

Rate

0.36

%

0.46

1.00

1.13

1.26

Savings deposits

$

1,114,956

1,036,024

926,822

915,640

900,366

Rate

0.02

%

0.02

0.05

0.05

0.05

Time deposits under $100,000

$

1,379,923

1,621,943

1,761,741

1,873,350

2,100,492

Rate

1.03

%

1.43

1.64

1.27

1.39

Time deposits over $100,000

$

3,863,821

4,772,555

5,051,705

5,198,266

5,957,691

Rate

1.44

%

1.80

2.04

1.51

1.69

Other brokered deposits

$

1,912,114

1,998,571

1,376,669

1,156,131

993,078

Rate

0.23

%

0.25

1.42

1.84

2.47

Brokered time deposits

$

2,232,940

2,244,429

2,166,496

2,121,069

2,119,149

Rate

1.59

%

1.86

2.11

2.16

2.27

Total interest-bearing deposits

$

31,565,821

31,172,941

29,277,433

28,172,034

28,348,369

Rate

0.54

%

0.73

1.18

1.16

1.32

Federal funds purchased and securities sold under repurchase agreements

$

180,342

250,232

167,324

192,731

221,045

Rate

0.09

%

0.12

0.30

0.24

0.22

Other short-term borrowings

$

46,739

550,000

1,384,362

1,565,507

1,307,370

Rate

1.12

%

1.23

1.66

1.87

2.31

Long-term debt

$

2,234,665

2,834,188

2,678,651

2,153,983

2,286,221

Rate

2.71

%

2.36

2.78

3.07

3.32

Total interest-bearing liabilities

$

34,027,567

34,807,361

33,507,770

32,084,255

32,163,005

Rate

0.68

%

0.86

1.30

1.30

1.47

Non-interest-bearing demand deposits

$

12,773,676

11,923,534

9,409,774

9,706,784

9,365,776

Cost of funds

0.50

%

0.65

1.04

1.02

1.16

Net interest margin

3.10

%

3.13

3.37

3.65

3.69

Taxable equivalent adjustment (4)

$

956

861

786

769

819

(1) Yields and rates are annualized.

(2) Excludes net unrealized gains and losses.

(3) Average loans are shown net of unearned income. Non-performing loans are included.

(4) 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.

(5) Included as a component of other assets on the consolidated balance sheet.

Synovus

AVERAGE BALANCES AND YIELDS/RATES^ (1)

(Unaudited) 2020 2019 (Dollars in thousands)

Third Second First Fourth Third

Quarter Quarter Quarter Quarter Quarter

Interest Earning Assets

Investment $ 7,227,400 6,618,533 6,680,047 6,696,768 6,831,036 securities^ (2) (4)

Yield 2.39 % 2.72 3.09 3.12 3.14

Trading account $ 5,391 6,173 6,306 7,986 5,519 assets ^(5)

Yield 1.69 % 2.19 2.70 2.69 4.01

Commercial loans ^ $ 30,730,135 30,236,919 27,607,343 26,698,202 26,567,719 (3) (4)

Yield 3.80 % 3.95 4.57 4.82 5.09

Consumer loans ^(3) $ 9,032,437 9,899,172 9,985,702 9,809,832 9,633,603

Yield 4.08 % 4.34 4.60 5.07 5.08

Allowance for loan $ (591,098 ) (498,545 ) (368,033 ) (269,052 ) (258,024 ) losses

Loans, net ^(3) $ 39,171,474 39,637,546 37,225,012 36,238,982 35,943,298

Yield 3.92 % 4.08 4.62 4.93 5.13

Mortgage loans held $ 244,952 221,157 86,415 117,909 99,556 for sale

Yield 2.92 % 3.09 3.67 3.77 3.93

Other loans held for $ 493,940 19,246 - - 475 sale

Yield 3.61 % 4.19 - - -

Federal funds sold, due from Federal Reserve Bank, and $ 1,265,880 1,709,086 652,130 514,635 513,160 other short-term investments

Yield 0.11 % 0.11 1.02 1.71 2.08

Federal Home Loan Bank and Federal $ 200,923 247,801 284,082 278,586 254,994 Reserve Bank Stock ^ (5)

Yield 2.73 % 3.60 3.38 2.85 3.85

Total interest $ 48,609,960 48,459,542 44,933,992 43,854,866 43,648,038 earning assets

Yield 3.58 % 3.75 4.33 4.60 4.78

Interest-Bearing Liabilities

Interest-bearing $ 7,789,095 7,260,940 6,445,986 6,381,282 6,138,810 demand deposits

Rate 0.19 % 0.21 0.51 0.60 0.69

Money Market $ 13,272,972 12,238,479 11,548,014 10,526,296 10,138,783 accounts

Rate 0.36 % 0.46 1.00 1.13 1.26

Savings deposits $ 1,114,956 1,036,024 926,822 915,640 900,366

Rate 0.02 % 0.02 0.05 0.05 0.05

Time deposits under $ 1,379,923 1,621,943 1,761,741 1,873,350 2,100,492 $100,000

Rate 1.03 % 1.43 1.64 1.27 1.39

Time deposits over $ 3,863,821 4,772,555 5,051,705 5,198,266 5,957,691 $100,000

Rate 1.44 % 1.80 2.04 1.51 1.69

Other brokered $ 1,912,114 1,998,571 1,376,669 1,156,131 993,078 deposits

Rate 0.23 % 0.25 1.42 1.84 2.47

Brokered time $ 2,232,940 2,244,429 2,166,496 2,121,069 2,119,149 deposits

Rate 1.59 % 1.86 2.11 2.16 2.27

Total interest-bearing $ 31,565,821 31,172,941 29,277,433 28,172,034 28,348,369 deposits

Rate 0.54 % 0.73 1.18 1.16 1.32

Federal funds purchased and securities sold $ 180,342 250,232 167,324 192,731 221,045 under repurchase agreements

Rate 0.09 % 0.12 0.30 0.24 0.22

Other short-term $ 46,739 550,000 1,384,362 1,565,507 1,307,370 borrowings

Rate 1.12 % 1.23 1.66 1.87 2.31

Long-term debt $ 2,234,665 2,834,188 2,678,651 2,153,983 2,286,221

Rate 2.71 % 2.36 2.78 3.07 3.32

Total interest-bearing $ 34,027,567 34,807,361 33,507,770 32,084,255 32,163,005 liabilities

Rate 0.68 % 0.86 1.30 1.30 1.47

Non-interest-bearing $ 12,773,676 11,923,534 9,409,774 9,706,784 9,365,776 demand deposits

Cost of funds 0.50 % 0.65 1.04 1.02 1.16

Net interest margin 3.10 % 3.13 3.37 3.65 3.69

Taxable equivalent $ 956 861 786 769 819 adjustment^ (4)

^(1) Yields and rates are annualized.

^(2) Excludes net unrealized gains and losses.

^(3) Average loans are shown net of unearned income. Non-performing loans are included.

^(4) 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.

^(5) Included as a component of other assets on the consolidated balance sheet.

Synovus

LOANS OUTSTANDING BY TYPE

(Unaudited)

(Dollars in thousands)

Total Loans

Total Loans

Linked Quarter

Total Loans

Year/Year

Loan Type

September 30, 2020

June 30, 2020

% Change

September 30, 2019

% Change

Commercial, Financial, and Agricultural

$

13,120,038

$

13,136,696

-

%

$

9,846,830

33

%

Owner-Occupied

6,894,113

6,801,580

1

6,571,485

5

Total Commercial & Industrial

20,014,151

19,938,276

-

16,418,315

22

Multi-Family

2,365,118

2,252,820

5

2,063,808

15

Hotels

1,409,424

1,364,511

3

1,267,790

11

Office Buildings

2,313,346

2,297,721

1

2,161,258

7

Shopping Centers

1,698,993

1,738,504

(2

)

1,699,656

-

Warehouses

730,253

781,252

(7

)

673,780

8

Other Investment Property

1,145,313

1,012,392

13

977,253

17

Total Investment Properties

9,662,447

9,447,200

2

8,843,545

9

1-4 Family Construction

180,406

229,999

(22

)

288,897

(38

)

1-4 Family Investment Mortgage

474,632

466,809

2

516,859

(8

)

Total 1-4 Family Properties

655,038

696,808

(6

)

805,756

(19

)

Commercial Development

111,493

112,539

(1

)

124,213

(10

)

Residential Development

260,313

270,952

(4

)

218,991

19

Land Acquisition

276,584

300,036

(8

)

320,485

(14

)

Land and Development

648,390

683,527

(5

)

663,689

(2

)

Total Commercial Real Estate

10,965,875

10,827,535

1

10,312,990

6

Consumer Mortgages

5,658,525

5,811,376

(3

)

5,470,730

3

Home Equity Lines

1,615,207

1,710,264

(6

)

1,675,092

(4

)

Credit Cards

264,829

250,448

6

267,874

(1

)

Other Consumer Loans

1,130,237

1,474,583

(23

)

2,295,486

(51

)

Total Consumer

8,668,798

9,246,671

(6

)

9,709,182

(11

)

Unearned Income

(98,977

)

(98,185

)

1

(22,661

)

337

Total

$

39,549,847

$

39,914,297

(1

)%

$

36,417,826

9

%

NON-PERFORMING LOANS COMPOSITION

(Unaudited)

TotalNon-performing Loans

Total Non-performing Loans

Linked Quarter

Total Non-performing Loans

Year/Year

(Dollars in thousands)

Loan Type

September 30, 2020

June 30, 2020

% Change

September 30, 2019

% Change

Commercial, Financial, and Agricultural

$

95,365

$

83,000

15

%

$

73,672

29

%

Owner-Occupied

20,261

19,605

3

9,222

120

Total Commercial & Industrial

115,626

102,605

13

82,894

39

Multi-Family

157

-

nm

-

nm

Office Buildings

27,608

836

nm

290

nm

Shopping Centers

257

409

(37

)

140

84

Other Investment Property

238

393

(39

)

-

nm

Total Investment Properties

28,260

1,638

nm

430

nm

1-4 Family Construction

1,556

2,593

(40

)

698

123

1-4 Family Investment Mortgage

1,815

1,844

(2

)

1,520

19

Total 1-4 Family Properties

3,371

4,437

(24

)

2,218

52

Commercial Development

833

840

(1

)

87

nm

Residential Development

648

685

(5

)

1,526

(58

)

Land Acquisition

910

1,042

(13

)

1,419

(36

)

Land and Development

2,391

2,567

(7

)

3,032

(21

)

Total Commercial Real Estate

34,022

8,642

294

5,680

499

Consumer Mortgages

7,433

17,438

(57

)

10,015

(26

)

Home Equity Lines

10,297

14,200

(27

)

12,590

(18

)

Other Consumer Loans

1,459

4,552

(68

)

4,736

(69

)

Total Consumer

19,189

36,190

(47

)

27,341

(30

)

Total

$

168,837

$

147,437

15

%

$

115,915

46

%

Synovus

LOANSOUTSTANDING BY TYPE

(Unaudited)

(Dollars in thousands)

Total Loans Total Loans Linked Total Loans Year/ Quarter Year

Loan Type September 30, June 30, 2020 % September 30, % 2020 Change 2019 Change

Commercial,Financial, and $ 13,120,038 $ 13,136,696 - % $ 9,846,830 33 %Agricultural

Owner-Occupied 6,894,113 6,801,580 1 6,571,485 5

TotalCommercial & 20,014,151 19,938,276 - 16,418,315 22 Industrial

Multi-Family 2,365,118 2,252,820 5 2,063,808 15

Hotels 1,409,424 1,364,511 3 1,267,790 11

Office 2,313,346 2,297,721 1 2,161,258 7 Buildings

Shopping 1,698,993 1,738,504 (2 ) 1,699,656 - Centers

Warehouses 730,253 781,252 (7 ) 673,780 8

OtherInvestment 1,145,313 1,012,392 13 977,253 17 Property

TotalInvestment 9,662,447 9,447,200 2 8,843,545 9 Properties

1-4 Family 180,406 229,999 (22 ) 288,897 (38 )Construction

1-4 FamilyInvestment 474,632 466,809 2 516,859 (8 )Mortgage

Total 1-4Family 655,038 696,808 (6 ) 805,756 (19 )Properties

Commercial 111,493 112,539 (1 ) 124,213 (10 )Development

Residential 260,313 270,952 (4 ) 218,991 19 Development

Land 276,584 300,036 (8 ) 320,485 (14 )Acquisition

Land and 648,390 683,527 (5 ) 663,689 (2 )Development

TotalCommercial 10,965,875 10,827,535 1 10,312,990 6 Real Estate

Consumer 5,658,525 5,811,376 (3 ) 5,470,730 3 Mortgages

Home Equity 1,615,207 1,710,264 (6 ) 1,675,092 (4 )Lines

Credit Cards 264,829 250,448 6 267,874 (1 )

Other Consumer 1,130,237 1,474,583 (23 ) 2,295,486 (51 )Loans

Total Consumer 8,668,798 9,246,671 (6 ) 9,709,182 (11 )

Unearned (98,977 ) (98,185 ) 1 (22,661 ) 337 Income

Total $ 39,549,847 $ 39,914,297 (1 )% $ 36,417,826 9 %



NON-PERFORMING LOANS COMPOSITION

(Unaudited) Total Total Total(Dollars in Non-performing Non-performing Linked Non-performing Year/thousands) Loans Loans Quarter Loans Year



Loan Type September 30, June 30, 2020 % September 30, % 2020 Change 2019 Change

Commercial,Financial, and $ 95,365 $ 83,000 15 % $ 73,672 29 %Agricultural

Owner-Occupied 20,261 19,605 3 9,222 120

TotalCommercial & 115,626 102,605 13 82,894 39 Industrial

Multi-Family 157 - nm - nm

Office 27,608 836 nm 290 nm Buildings

Shopping 257 409 (37 ) 140 84 Centers

OtherInvestment 238 393 (39 ) - nm Property

TotalInvestment 28,260 1,638 nm 430 nm Properties

1-4 Family 1,556 2,593 (40 ) 698 123 Construction

1-4 FamilyInvestment 1,815 1,844 (2 ) 1,520 19 Mortgage

Total 1-4Family 3,371 4,437 (24 ) 2,218 52 Properties

Commercial 833 840 (1 ) 87 nm Development

Residential 648 685 (5 ) 1,526 (58 )Development

Land 910 1,042 (13 ) 1,419 (36 )Acquisition

Land and 2,391 2,567 (7 ) 3,032 (21 )Development

TotalCommercial 34,022 8,642 294 5,680 499 Real Estate

Consumer 7,433 17,438 (57 ) 10,015 (26 )Mortgages

Home Equity 10,297 14,200 (27 ) 12,590 (18 )Lines

Other Consumer 1,459 4,552 (68 ) 4,736 (69 )Loans

Total Consumer 19,189 36,190 (47 ) 27,341 (30 )

Total $ 168,837 $ 147,437 15 % $ 115,915 46 %

Synovus

CREDIT QUALITY DATA

(Unaudited)

(Dollars in thousands)

2020

2019

Third Quarter

Third

Second

First

Fourth

Third

20 vs '19

Quarter

Quarter

Quarter

Quarter

Quarter

% Change

Non-performing Loans (NPLs)

$

168,837

147,437

156,287

101,636

115,915

46

%

Other Real Estate and Other Assets

23,280

30,242

33,679

35,810

35,400

(34

)

Non-performing Assets (NPAs)

192,117

177,679

189,966

137,446

151,315

27

Allowance for Loan Losses (ALL)

603,800

588,648

493,452

281,402

265,013

128

Reserve for Unfunded Commitments

60,794

61,029

38,420

1,375

1,496

nm

Allowance for Credit Losses (ACL)

664,594

649,677

531,872

282,777

266,509

149

Net Charge-Offs - Quarter

28,466

24,046

20,061

8,821

19,925

Net Charge-Offs - YTD

72,573

44,107

20,061

57,612

48,792

Net Charge-Offs / Average Loans - Quarter (1)

0.29

%

0.24

0.21

0.10

0.22

Net Charge-Offs / Average Loans - YTD (1)

0.25

0.23

0.21

0.16

0.18

NPLs / Loans

0.43

0.37

0.41

0.27

0.32

NPAs / Loans, ORE and specific other assets

0.49

0.44

0.50

0.37

0.42

ACL/Loans

1.68

1.63

1.39

0.76

0.73

ALL/Loans

1.53

1.47

1.29

0.76

0.73

ACL/NPLs

393.63

440.65

340.32

278.23

229.92

ALL/NPLs

357.62

399.25

315.74

276.87

228.63

Past Due Loans over 90 days and Still Accruing

$

5,157

8,391

6,398

15,943

15,660

(67

)

As a Percentage of Loans Outstanding

0.01

%

0.02

0.02

0.04

0.04

Total Past Due Loans and Still Accruing

$

53,177

46,390

83,235

123,793

88,219

(40

)

As a Percentage of Loans Outstanding

0.13

%

0.12

0.22

0.33

0.24

Accruing Troubled Debt Restructurings (TDRs)

$

163,511

166,461

160,128

133,145

130,019

26

(1) Ratio is annualized.

SELECTED CAPITAL INFORMATION (1)

(Unaudited)

(Dollars in thousands)

September 30, 2020

December 31, 2019

September 30, 2019

Tier 1 Capital

$

4,454,365

4,280,604

4,196,628

Total Risk-Based Capital

5,541,385

5,123,381

5,023,138

Common Equity Tier 1 Capital Ratio

9.30

%

8.95

8.96

Tier 1 Capital Ratio

10.58

10.23

10.27

Total Risk-Based Capital Ratio

13.16

12.25

12.30

Tier 1 Leverage Ratio

8.49

9.16

9.02

Common Equity as a Percentage of Total Assets (2)

8.54

9.14

9.09

Tangible Common Equity Ratio (3) (5)

7.67

8.08

8.04

Book Value Per Common Share (4)

$

30.73

29.93

29.35

Tangible Book Value Per Common Share (3)

27.34

26.17

25.65

(1) Current quarter regulatory capital information is preliminary.

(2) Common equity consists of Total Shareholders' Equity less Preferred Stock.

(3) Excludes the carrying value of goodwill and other intangible assets from common equity and total assets.

(4) Book Value Per Common Share consists of Total Shareholders' Equity less Preferred Stock divided by total common shares outstanding.

(5) See "Non-GAAP Financial Measures" of this report for applicable reconciliation.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201020005388/en/

CONTACT: Media Contact Lee Underwood Media Relations (706) 644-0528

CONTACT: Investor Contact Kevin Brown Investor Relations (706) 644-0948