Business Wire | Jan 26, 2021 06:30AM EST

Synovus Announces Earnings for the Fourth Quarter 2020

Jan. 26, 2021

COLUMBUS, Ga.--(BUSINESS WIRE)--Jan. 26, 2021--Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter and year ended December 31, 2020.

2020 Highlights

* Net income available to common shareholders for 2020 was $340.5 million or $2.30 per diluted share as compared to $540.9 million or $3.47 per diluted share for 2019. Adjusted earnings per diluted share for 2020 were $2.41 as compared to $3.90 for 2019, a decrease of 38%. * CET1 ratio increased 72 basis points to 9.67%; total risk-based capital ratio of 13.43% the highest since 2014. * Allowance for Credit Losses (ACL) increased $370.7 million or 105 basis points (to loans) to 1.81% year-over-year, excluding Paycheck Protection Program (PPP) loans. Includes increase of $110.4 million or 30 basis points from the adoption of Current Expected Credit Losses on January 1, 2020. * Processed and approved nearly $2.9 billion in PPP loans, supporting approximately 19,000 customers. * Announced Synovus Forward in January, a plan expected to add $100 million pre-tax benefit with a combination of revenue and expense initiatives. * In December, a CEO transition plan was announced, and Kevin Blair was named to the Board. In April 2021, Chairman and CEO Kessel Stelling will move into the role of Executive Chairman and Kevin Blair will become CEO.

Fourth Quarter 2020 Highlights

* Net income available to common shareholders was $142.1 million or $0.96 per diluted share as compared to $83.3 million or $0.56 in the prior quarter. Adjusted earnings per diluted share of $1.08, up 22% sequentially and 15% year-over-year. * Period-end loan decline of $1.30 billion or 3% sequentially. Loans declined by $700 million or 2% from the third quarter, excluding PPP forgiveness of $540 million or $516 million, net of unearned fees, and lending partnership balance reductions of $81 million. * Period-end deposit growth of $2.03 billion or 5% from the third quarter. Core transaction deposits (non-interest bearing, NOW/savings, and money market deposits excluding public and brokered funds) increased $1.77 billion or 6% sequentially. Total deposit costs of 28 basis points declined 11 basis points from the third quarter. * Net interest income of $385.9 million increased $8.9 million or 2% sequentially. * Non-interest revenue of $114.8 million stable with the prior quarter and increased $16.8 million year-over-year. * Non-interest expense of $302.5 million, a decrease of $14.2 million from the third quarter and an increase of $36.4 million from the prior-year quarter. Adjusted non-interest expense of $275.1 million increased $6.4 million sequentially, primarily due to a $4.5 million increase in expenses related to Synovus Forward, PPP, and COVID. * Credit quality metrics remained relatively stable, with a non-performing loan ratio of 0.39% and non-performing asset ratio of 0.50%; net charge-off ratio of 0.23%.

Fourth Quarter Summary

Reported Adjusted*

(dollars in 4Q20 3Q20 4Q19 4Q20 3Q20 4Q19thousands)

Net incomeavailable to $ 142,118 $ 83,283 $ 143,393 $ 160,618 $ 131,364 $ 140,069 commonshareholders

Dilutedearnings per 0.96 0.56 0.97 1.08 0.89 0.94 share

Total loans 38,252,984 39,549,847 37,162,450 N/A N/A N/A

Total 46,691,571 44,665,904 38,405,504 N/A N/A N/Adeposits

Total FTE 501,514 492,357 497,992 499,114 493,647 492,049 revenues

Return on 1.11 % 0.69 % 1.27 % 1.25 % 1.05 % 1.24 %avg assets

Return onavg common 12.31 7.28 13.08 13.91 11.48 12.78 equity

Return onavg tangible 14.00 8.46 15.18 15.79 13.24 14.84 commonequity

Net interest 3.12 3.10 3.65 3.10 3.08 3.40 margin**

Efficiency 60.32 64.31 53.44 54.60 53.91 53.20 ratio

Netcharge-off 0.23 0.29 0.10 N/A N/A N/Aratio

NPA ratio 0.50 0.49 0.37 N/A N/A N/A

^* Non-GAAP measures; see applicable reconciliation

^** Adjusted net interest margin excludes purchase accounting adjustmentsprimarily comprised of loan accretion and deposit premium amortization

"In a year marked by extraordinary volatility, we drew on the strength of our relationship-centered model to support our team members, customers, and communities," said Kessel Stelling, Synovus chairman and CEO. "During 2020, we delivered approximately 19,000 PPP loans totaling $2.9 billion to small business customers throughout the Southeast and grew core transaction deposits $8.6 billion. We also accelerated investments in several technology initiatives that provided more convenience and a better digital experience as customers adapted to this highly virtual environment. And at year end, our higher capital levels, improved liquidity, and strong credit quality further demonstrated the strength and resiliency of our balance sheet in a challenging environment. In the year ahead, we expect our Synovus Forward initiatives to produce additional revenue opportunities, expense savings, and efficiencies that will further strengthen our bank. We continue to move forward with purpose, meeting the very real needs of individuals and businesses, and remain committed to being a source of stability, unity, and value creation for all we serve."

Balance Sheet

Loans^*



(dollars Linked Linked Year/in 4Q20 3Q20 Quarter Quarter 4Q19 Year/Year Yearmillions) Change % Change % Change Change

Commercial& $ 19,373.7 $ 20,014.2 $ (640.5) (3) % $ 16,769.4 $ 2,604.3 16 %industrial

Commercialreal 10,570.4 10,965.9 (395.4) (4) 10,493.8 76.7 1 estate

Consumer 8,386.5 8,668.8 (282.3) (3) 9,924.7 (1,538.1) (15)

Unearned (77.7) (99.0) 21.3 (22) (25.4) (52.3) 206 income

Total $ 38,253.0 $ 39,549.8 $ (1,296.9) (3) % $ 37,162.5 $ 1,090.5 3 %loans

^* Amounts may not total due to rounding

* Total loans ended the quarter at $38.25 billion, down $1.30 billion or 3% sequentially. * Commercial and industrial (C&I) loans decreased $640.5 million or 3% from the prior quarter. PPP forgiveness of $540 million, or $516 million, net of unearned fees, in the fourth quarter. C&I line utilization remains near historic lows at 40%, down 6% year-over-year. * Consumer loans decreased by $282.3 million or 3% sequentially. Strategic declines in lending partnership balances of $81 million. * Commercial real estate loans declined by $395.4 million or 4% from the prior quarter as pay-off and pay-down activity increased during the quarter.

Deposits^*



Linked Linked Year/Year(dollars in 4Q20 3Q20 Quarter Quarter 4Q19 Year/Year %millions) Change % Change Change Change

Non-interest-bearing $ 12,382.7 $ 12,129.8 $ 252.9 2 % $ 8,661.2 $ 3,721.5 43 %DDA

Interest-bearing DDA 5,674.4 5,291.1 383.3 7 4,769.5 904.9 19

Money market 13,541.2 12,441.3 1,099.9 9 9,827.4 3,713.9 38

Savings 1,156.2 1,126.0 30.3 3 909.5 246.7 27

Public funds 6,760.6 5,791.9 968.7 17 4,622.3 2,138.3 46

Time deposits 3,605.9 3,976.5 (370.5) (9) 6,185.6 (2,579.7) (42)

Brokered deposits 3,570.4 3,909.3 (338.9) (9) 3,430.0 140.4 4

Total deposits $ 46,691.6 $ 44,665.9 $ 2,025.7 5 % $ 38,405.5 $ 8,286.1 22 %

^* Amounts may not total due to rounding

* Total deposits ended the quarter at $46.69 billion up $2.03 billion or 5% sequentially. Core transaction deposits increased $1.77 billion or 6% from the prior quarter. Strong seasonal inflows supported a $968.7 million increase in public funds compared to the third quarter. * Total deposit costs declined 11 basis points from the third quarter to 28 basis points.

Income Statement Summary^*



(in Linked Linked Year/thousands, 4Q20 3Q20 Quarter Quarter 4Q19 Year/Year Year %except per Change % Change Changeshare data) Change

Net interest $ 385,932 $ 376,990 $ 8,942 2 % $ 399,268 $ (13,336) (3) %income

Non-interest 114,761 114,411 350 - 97,955 16,806 17 revenue

Non-interest 302,498 316,655 (14,157) (4) 266,121 36,377 14 expense

Provisionfor credit 11,066 43,383 (32,317) (74) 24,470 (13,404) (55) losses

Income $ 187,129 $ 131,363 $ 55,766 42 $ 206,632 $ (19,503) (9)before taxes

Income tax 36,720 39,789 (3,069) (8) 54,948 (18,228) (33) expense

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

Net incomeavailable to $ 142,118 $ 83,283 $ 58,835 71 % $ 143,393 $ (1,275) (1) %commonshareholders

Weightedaveragecommon 148,725 147,976 749 1 % 148,529 196 -sharesoutstanding,diluted

Dilutedearnings per $ 0.96 $ 0.56 $ 0.39 70 $ 0.97 $ (0.01) (1) share

Adjusteddiluted $ 1.08 $ 0.89 $ 0.19 22 $ 0.94 $ 0.14 15 earnings pershare**

^* Amounts may not total due to rounding

^** Non-GAAP measure; see applicable reconciliation

Core Performance

* Total FTE revenues were $501.5 million in the fourth quarter up $9.2 million sequentially. * Net interest income increased $8.9 million or 2% compared to the prior quarter, primarily due to PPP fee accretion of $24.8 million up $12.9 million from the third quarter. * Net interest margin was 3.12% up 2 basis points from the previous quarter. * Non-interest revenue of $114.8 million was stable with the third quarter and increased $16.8 million or 17% compared to fourth quarter 2019. The fourth quarter included broad-based growth with increases in service charges, fiduciary and asset management, card fees, and brokerage offset by declines in capital markets and mortgage revenues. * Non-interest expense decreased $14.2 million or 4% sequentially. Adjusted non-interest expense increased $6.4 million or 2% from the prior quarter. Adjusted non-interest expense includes a $4.5 million increase in fees related to Synovus Forward, PPP, and COVID. * Provision for credit losses was $11.1 million a $32.3 million decrease from the previous quarter. The decrease includes net charge-offs of $22.1 million. Provision for credit losses other than net charge-offs reflects lower loan balances and a more favorable economic outlook. * The effective tax rate was 19.6% for the quarter.

Capital Ratios



4Q20 3Q20 4Q19

Common equity Tier 1 capital (CET1) ratio 9.67 % (1) 9.30 % 8.95 %

Tier 1 capital ratio 10.95 (1) 10.57 10.23

Total risk-based capital ratio 13.43 (1) 13.16 12.25

Tier 1 leverage ratio 8.50 (1) 8.48 9.16

Tangible common equity ratio^(2) 7.66 7.67 8.08

^(1) Ratios are preliminary

^(2) Non-GAAP measure; see applicable reconciliation

Capital

* CET1 ratio increased 37 basis points sequentially to 9.67%, above the higher end of the 9.0-9.5% operating range. * Total risk-based capital ratio of 13.43% increased 27 basis points from the prior quarter and includes subordinated debt optimization efforts completed in the fourth quarter. * The Board of Directors has authorized share repurchases of up to $200 million in 2021.

Fourth Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. ET on January 26, 2021. 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 $54 billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services through 289 branches in Georgia, Alabama, South Carolina, Florida, 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, including our outlook and long-term goals for future growth; our expectations regarding net interest margin; expectations on our growth strategy, expense management, capital 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 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 exclusive of investment securities gains (losses), net and gain on sale and fair value increase, net of private equity investments. 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.

Reconciliationof Non-GAAP FinancialMeasures



(dollars in 4Q20 3Q20 4Q19 2020 2019thousands)

Adjustednon-interest revenue

Totalnon-interest $ 114,761 $ 114,411 $ 97,955 $ 506,513 $ 355,900 revenue

Subtract/add:Investmentsecurities (2,337) 1,550 2,157 (78,931) 7,659 (gains)losses, net

Subtract: Gainon sale andfair valueincrease, net (63) (260) (8,100) (4,775) (11,607) of privateequityinvestments

Adjustednon-interest $ 112,361 $ 115,701 $ 92,012 $ 422,807 $ 351,952 revenue



Adjustednon-interest expense

Totalnon-interest $ 302,498 $ 316,655 $ 266,121 $ 1,179,574 $ 1,098,968 expense

Subtract:Earnout - - - (4,908) (10,457) liabilityadjustments

Subtract:Goodwill - (44,877) - (44,877) - impairment

Add/subtract:Merger-related - - 913 - (56,580) expense

Subtract:Restructuring (18,068) (2,882) (1,259) (26,991) (1,230) charges

Subtract:Valuationadjustment to (890) - (1,111) (890) (3,611) Visaderivative

Subtract: Losson early (8,409) (154) - (10,466) (4,592) extinguishmentof debt

Adjustednon-interest $ 275,131 $ 268,742 $ 264,664 $ 1,091,442 $ 1,022,498 expense



Adjusted totalrevenues andadjusted tangibleefficiencyratio

Adjustednon-interest $ 275,131 $ 268,742 $ 264,664 $ 1,091,442 $ 1,022,498 expense

Subtract:Amortization (2,640) (2,640) (2,901) (10,560) (11,603) of intangibles

Adjustedtangible $ 272,491 $ 266,102 $ 261,763 $ 1,080,882 $ 1,010,895 non-interestexpense



Net interest $ 385,932 $ 376,990 $ 399,268 $ 1,512,748 $ 1,595,803 income

Add: Taxequivalent 821 956 769 3,424 3,025 adjustment

Add: Totalnon-interest 114,761 114,411 97,955 506,513 355,900 revenue

Total FTE 501,514 492,357 497,992 2,022,685 1,954,728 revenues

Subtract/add:Investmentsecurities (2,337) 1,550 2,157 (78,931) 7,659 (gains)losses, net

Subtract: Gainon sale andfair valueincrease, net (63) (260) (8,100) (4,775) (11,607) of privateequityinvestments

Adjusted total $ 499,114 $ 493,647 $ 492,049 $ 1,938,979 $ 1,950,780 revenues

Efficiency 60.32 % 64.31 % 53.44 % 58.32 % 56.22 %ratio-FTE

Adjustedtangible 54.60 53.91 53.20 55.74 51.82 efficiencyratio



Reconciliation of Non-GAAP Financial Measures, continued

(in thousands, except per share data)

4Q20

3Q20

4Q19

2020

2019

Adjusted return on average assets

Net income

$

150,409

$

91,574

$

151,684

$

373,695

$

563,780

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

-

44,877

-

Subtract/add: Merger-related expense

-

-

(913)

-

56,580

Add: Restructuring charges

18,068

2,882

1,259

26,991

1,230

Add: Valuation adjustment to Visa derivative

890

-

1,111

890

3,611

Add: Loss on early extinguishment of debt

8,409

154

-

10,466

4,592

Subtract/add: Investment securities (gains) losses, net

(2,337)

1,550

2,157

(78,931)

7,659

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

(63)

(260)

(8,100)

(4,775)

(11,607)

Subtract/add: Tax effect of adjustments

(6,467)

(1,122)

1,162

11,748

(9,343)

Adjusted net income

$

168,909

$

139,655

$

148,360

$

389,869

$

631,361

Net income annualized

$

598,366

$

364,305

$

601,790

$

373,695

$

563,780

Adjusted net income annualized

$

671,964

$

555,584

$

588,602

$

389,869

$

631,361

Total average assets

$

53,833,909

$

53,138,334

$

47,459,405

$

52,138,038

$

46,791,930

Return on average assets

1.11

%

0.69

%

1.27

%

0.72

%

1.20

%

Adjusted return on average assets

1.25

1.05

1.24

0.75

1.35

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

Net income available to common shareholders

$

142,118

$

83,283

$

143,393

$

340,532

$

540,899

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

-

44,877

-

Subtract/add: Merger-related expense

-

-

(913)

-

56,580

Add: Restructuring charges

18,068

2,882

1,259

26,991

1,230

Add: Valuation adjustment to Visa derivative

890

-

1,111

890

3,611

Add: Loss on early extinguishment of debt

8,409

154

-

10,466

4,592

Subtract/add: Investment securities (gains) losses, net

(2,337)

1,550

2,157

(78,931)

7,659

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

(63)

(260)

(8,100)

(4,775)

(11,607)

Subtract/add: Tax effect of adjustments

(6,467)

(1,122)

1,162

11,748

(9,343)

Adjusted net income available to common shareholders

$

160,618

$

131,364

$

140,069

$

356,706

$

608,480

Weighted average common shares outstanding, diluted

148,725

147,976

148,529

148,210

156,058

Net income per common share, diluted

$

0.96

$

0.56

$

0.97

$

2.30

$

3.47

Adjusted net income per common share, diluted

1.08

0.89

0.94

2.41

3.90

Reconciliationof Non-GAAPFinancial Measures,continued

(in thousands,except per 4Q20 3Q20 4Q19 2020 2019share data)

Adjustedreturn on average assets

Net income $ 150,409 $ 91,574 $ 151,684 $ 373,695 $ 563,780

Add: Incometax expense,net related to - - - - 4,402 State TaxReform

Add: Earnoutliability - - - 4,908 10,457 adjustments

Add: Goodwill - 44,877 - 44,877 - impairment

Subtract/add:Merger-related - - (913) - 56,580 expense

Add:Restructuring 18,068 2,882 1,259 26,991 1,230 charges

Add: Valuationadjustment to 890 - 1,111 890 3,611 Visaderivative

Add: Loss onearly 8,409 154 - 10,466 4,592 extinguishmentof debt

Subtract/add:Investmentsecurities (2,337) 1,550 2,157 (78,931) 7,659 (gains)losses, net

Subtract: Gainon sale andfair valueincrease, net (63) (260) (8,100) (4,775) (11,607) of privateequityinvestments

Subtract/add:Tax effect of (6,467) (1,122) 1,162 11,748 (9,343) adjustments

Adjusted net $ 168,909 $ 139,655 $ 148,360 $ 389,869 $ 631,361 income

Net income $ 598,366 $ 364,305 $ 601,790 $ 373,695 $ 563,780 annualized

Adjusted netincome $ 671,964 $ 555,584 $ 588,602 $ 389,869 $ 631,361 annualized

Total average $ 53,833,909 $ 53,138,334 $ 47,459,405 $ 52,138,038 $ 46,791,930 assets

Return on 1.11 % 0.69 % 1.27 % 0.72 % 1.20 %average assets

Adjustedreturn on 1.25 1.05 1.24 0.75 1.35 average assets



Adjusted netincomeavailable tocommonshareholders and adjustednet income percommon share,diluted

Net incomeavailable to $ 142,118 $ 83,283 $ 143,393 $ 340,532 $ 540,899 commonshareholders

Add: Incometax expense,net related to - - - - 4,402 State TaxReform

Add: Earnoutliability - - - 4,908 10,457 adjustments

Add: Goodwill - 44,877 - 44,877 - impairment

Subtract/add:Merger-related - - (913) - 56,580 expense

Add:Restructuring 18,068 2,882 1,259 26,991 1,230 charges

Add: Valuationadjustment to 890 - 1,111 890 3,611 Visaderivative

Add: Loss onearly 8,409 154 - 10,466 4,592 extinguishmentof debt

Subtract/add:Investmentsecurities (2,337) 1,550 2,157 (78,931) 7,659 (gains)losses, net

Subtract: Gainon sale andfair valueincrease, net (63) (260) (8,100) (4,775) (11,607) of privateequityinvestments

Subtract/add:Tax effect of (6,467) (1,122) 1,162 11,748 (9,343) adjustments

Adjusted netincomeavailable to $ 160,618 $ 131,364 $ 140,069 $ 356,706 $ 608,480 commonshareholders

Weightedaverage commonshares 148,725 147,976 148,529 148,210 156,058 outstanding,diluted

Net income percommon share, $ 0.96 $ 0.56 $ 0.97 $ 2.30 $ 3.47 diluted

Adjusted netincome per 1.08 0.89 0.94 2.41 3.90 common share,diluted



Reconciliation of Non-GAAP Financial Measures, continued

(dollars in thousands)

4Q20

3Q20

4Q19

2020

2019

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

$

142,118

$

83,283

$

143,393

$

340,532

$

540,899

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

-

44,877

-

Subtract/add: Merger-related expense

-

-

(913)

-

56,580

Add: Restructuring charges

18,068

2,882

1,259

26,991

1,230

Add: Valuation adjustment to Visa derivative

890

-

1,111

890

3,611

Add: Loss on early extinguishment of debt

8,409

154

-

10,466

4,592

Subtract/add: Investment securities (gains) losses, net

(2,337)

1,550

2,157

(78,931)

7,659

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

(63)

(260)

(8,100)

(4,775)

(11,607)

Subtract/add: Tax effect of adjustments

(6,467)

(1,122)

1,162

11,748

(9,343)

Adjusted net income available to common shareholders

$

160,618

$

131,364

$

140,069

$

356,706

$

608,480

Adjusted net income available to common shareholders annualized

$

638,980

$

522,600

$

555,709

$

356,706

$

608,480

Add: Amortization of intangibles

7,782

7,782

8,528

7,825

8,598

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

$

646,762

$

530,382

$

564,237

$

364,531

$

617,078

Net income available to common shareholders annualized

$

565,382

$

331,322

$

568,896

$

340,532

$

540,899

Add: Amortization of intangibles

7,782

7,782

8,528

7,825

8,598

Net income available to common shareholders excluding amortization of intangibles annualized

$

573,164

$

339,104

$

577,424

$

348,357

$

549,497

Total average shareholders' equity less preferred stock

$

4,594,199

$

4,553,159

$

4,348,250

$

4,534,935

$

4,384,458

Subtract: Goodwill

(452,390)

(497,267)

(488,223)

(485,987)

(487,126)

Subtract: Other intangible assets, net

(46,511)

(49,075)

(57,149)

(50,427)

(65,553)

Total average tangible shareholders' equity less preferred stock

$

4,095,298

$

4,006,817

$

3,802,878

$

3,998,521

$

3,831,779

Return on average common equity

12.31

%

7.28

%

13.08

%

7.51

%

12.34

%

Adjusted return on average common equity

13.91

11.48

12.78

7.87

13.88

Return on average tangible common equity

14.00

8.46

15.18

8.71

14.34

Adjusted return on average tangible common equity

15.79

13.24

14.84

9.12

16.10

Reconciliationof Non-GAAPFinancial Measures,continued

(dollars in 4Q20 3Q20 4Q19 2020 2019thousands)



Adjustedreturn onaverage commonequity, returnon averagetangible common equity,and adjustedreturn onaveragetangiblecommon equity

Net incomeavailable to $ 142,118 $ 83,283 $ 143,393 $ 340,532 $ 540,899 commonshareholders

Add: Incometax expense,net related to - - - - 4,402 State TaxReform

Add: Earnoutliability - - - 4,908 10,457 adjustments

Add: Goodwill - 44,877 - 44,877 - impairment

Subtract/add:Merger-related - - (913) - 56,580 expense

Add:Restructuring 18,068 2,882 1,259 26,991 1,230 charges

Add: Valuationadjustment to 890 - 1,111 890 3,611 Visaderivative

Add: Loss onearly 8,409 154 - 10,466 4,592 extinguishmentof debt

Subtract/add:Investmentsecurities (2,337) 1,550 2,157 (78,931) 7,659 (gains)losses, net

Subtract: Gainon sale andfair valueincrease, net (63) (260) (8,100) (4,775) (11,607) of privateequityinvestments

Subtract/add:Tax effect of (6,467) (1,122) 1,162 11,748 (9,343) adjustments

Adjusted netincomeavailable to $ 160,618 $ 131,364 $ 140,069 $ 356,706 $ 608,480 commonshareholders



Adjusted netincomeavailable to $ 638,980 $ 522,600 $ 555,709 $ 356,706 $ 608,480 commonshareholdersannualized

Add:Amortization 7,782 7,782 8,528 7,825 8,598 of intangibles

Adjusted netincomeavailable tocommonshareholders $ 646,762 $ 530,382 $ 564,237 $ 364,531 $ 617,078 excludingamortizationof intangiblesannualized



Net incomeavailable tocommon $ 565,382 $ 331,322 $ 568,896 $ 340,532 $ 540,899 shareholdersannualized

Add:Amortization 7,782 7,782 8,528 7,825 8,598 of intangibles

Net incomeavailable tocommonshareholders $ 573,164 $ 339,104 $ 577,424 $ 348,357 $ 549,497 excludingamortizationof intangiblesannualized



Total averageshareholders'equity less $ 4,594,199 $ 4,553,159 $ 4,348,250 $ 4,534,935 $ 4,384,458 preferredstock

Subtract: (452,390) (497,267) (488,223) (485,987) (487,126) Goodwill

Subtract:Other (46,511) (49,075) (57,149) (50,427) (65,553) intangibleassets, net

Total averagetangibleshareholders' $ 4,095,298 $ 4,006,817 $ 3,802,878 $ 3,998,521 $ 3,831,779 equity lesspreferredstock

Return onaverage common 12.31 % 7.28 % 13.08 % 7.51 % 12.34 %equity

Adjustedreturn on 13.91 11.48 12.78 7.87 13.88 average commonequity

Return onaverage 14.00 8.46 15.18 8.71 14.34 tangiblecommon equity

Adjustedreturn onaverage 15.79 13.24 14.84 9.12 16.10 tangiblecommon equity

Reconciliation of Non-GAAP Financial Measures, continued

December 31,

September 30,

December 31,

(dollars in thousands)

2020

2020

2019

Tangible common equity ratio

Total assets

$

54,366,086

$

53,040,538

$

48,203,282

Subtract: Goodwill

(452,390)

(452,390)

(497,267)

Subtract: Other intangible assets, net

(45,112)

(47,752)

(55,671)

Tangible assets

$

53,868,584

$

52,540,396

$

47,650,344

Total shareholders' equity

$

5,161,334

$

5,064,542

$

4,941,690

Subtract: Goodwill

(452,390)

(452,390)

(497,267)

Subtract: Other intangible assets, net

(45,112)

(47,752)

(55,671)

Subtract: Preferred stock, no par value

(537,145)

(537,145)

(537,145)

Tangible common equity

$

4,126,687

$

4,027,255

$

3,851,607

Total shareholders' equity to total assets ratio

9.49

%

9.55

%

10.25

%

Tangible common equity ratio

7.66

7.67

8.08

Reconciliation of Non-GAAP Financial Measures, continued

December 31, September 30, December 31,

(dollars in thousands) 2020 2020 2019

Tangible common equity ratio



Total assets $ 54,366,086 $ 53,040,538 $ 48,203,282

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

Subtract: Other intangible (45,112) (47,752) (55,671) assets, net

Tangible assets $ 53,868,584 $ 52,540,396 $ 47,650,344



Total shareholders' equity $ 5,161,334 $ 5,064,542 $ 4,941,690

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

Subtract: Other intangible (45,112) (47,752) (55,671) assets, net

Subtract: Preferred stock, no (537,145) (537,145) (537,145) par value

Tangible common equity $ 4,126,687 $ 4,027,255 $ 3,851,607

Total shareholders' equity to 9.49 % 9.55 % 10.25 %total assets ratio

Tangible common equity ratio 7.66 7.67 8.08



Synovus

INCOME STATEMENT DATA

(Unaudited)

Years Ended

(Dollars in thousands, except per share data)

December 31,

2020

2019

% Change

Interest income

$

1,804,495

$

2,050,638

(12)

%

Interest expense

291,747

454,835

(36)

Net interest income

1,512,748

1,595,803

(5)

Provision for credit losses

355,022

87,720

305

Net interest income after provision for credit losses

1,157,726

1,508,083

(23)

Non-interest revenue:

Service charges on deposit accounts

73,132

88,190

(17)

Fiduciary and asset management fees

63,251

58,388

8

Card fees

42,702

45,659

(6)

Brokerage revenue

44,781

41,608

8

Mortgage banking income

91,413

32,599

180

Capital markets income

27,336

30,529

(10)

Income from bank-owned life insurance

31,297

21,226

47

Investment securities gains (losses), net

78,931

(7,659)

nm

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

4,775

11,607

nm

Other non-interest revenue

48,895

33,753

45

Total non-interest revenue

506,513

355,900

42

Non-interest expense:

Salaries and other personnel expense

618,214

570,036

8

Net occupancy, equipment, and software expense

169,658

161,906

5

Third-party processing and other services

83,034

75,696

10

Professional fees

56,899

35,300

61

FDIC insurance and other regulatory fees

25,210

31,696

(20)

Amortization of intangibles

10,560

11,603

(9)

Goodwill impairment

44,877

-

nm

Restructuring charges

26,991

1,230

nm

Loss on early extinguishment of debt

10,466

4,592

nm

Earnout liability adjustments

4,908

10,457

nm

Merger-related expense

-

56,580

nm

Other operating expenses

128,757

139,872

(8)

Total non-interest expense

1,179,574

1,098,968

7

Income before income taxes

484,665

765,015

(37)

Income tax expense

110,970

201,235

(45)

Net income

373,695

563,780

(34)

Less: Preferred stock dividends

33,163

22,881

45

Net income available to common shareholders

$

340,532

$

540,899

(37)

%

Net income per common share, basic

2.31

3.50

(34)

%

Net income per common share, diluted

2.30

3.47

(34)

Cash dividends declared per common share

1.32

1.20

10

Return on average assets*

0.72

%

1.20

%

(48)

bps

Return on average common equity*

7.51

12.34

(483)

Weighted average common shares outstanding, basic

147,415

154,331

(4)

%

Weighted average common shares outstanding, diluted

148,210

156,058

(5)

nm - not meaningful

bps - basis points

* - ratios are annualized

Synovus



INCOME STATEMENT DATA

(Unaudited) Years Ended

(Dollars in thousands, except per December 31,share data)



2020 2019 % Change



Interest income $ 1,804,495 $ 2,050,638 (12) %

Interest expense 291,747 454,835 (36)



Net interest income 1,512,748 1,595,803 (5)

Provision for credit losses 355,022 87,720 305

Net interest income after provision 1,157,726 1,508,083 (23) for credit losses



Non-interest revenue:

Service charges on deposit accounts 73,132 88,190 (17)

Fiduciary and asset management fees 63,251 58,388 8

Card fees 42,702 45,659 (6)

Brokerage revenue 44,781 41,608 8

Mortgage banking income 91,413 32,599 180

Capital markets income 27,336 30,529 (10)

Income from bank-owned life 31,297 21,226 47 insurance

Investment securities gains 78,931 (7,659) nm(losses), net

Gain on sale and fair valueincrease, net of private equity 4,775 11,607 nminvestments

Other non-interest revenue 48,895 33,753 45

Total non-interest revenue 506,513 355,900 42



Non-interest expense:

Salaries and other personnel 618,214 570,036 8 expense

Net occupancy, equipment, and 169,658 161,906 5 software expense

Third-party processing and other 83,034 75,696 10 services

Professional fees 56,899 35,300 61

FDIC insurance and other regulatory 25,210 31,696 (20) fees

Amortization of intangibles 10,560 11,603 (9)

Goodwill impairment 44,877 - nm

Restructuring charges 26,991 1,230 nm

Loss on early extinguishment of 10,466 4,592 nmdebt

Earnout liability adjustments 4,908 10,457 nm

Merger-related expense - 56,580 nm

Other operating expenses 128,757 139,872 (8)

Total non-interest expense 1,179,574 1,098,968 7



Income before income taxes 484,665 765,015 (37)

Income tax expense 110,970 201,235 (45)

Net income 373,695 563,780 (34)

Less: Preferred stock dividends 33,163 22,881 45

Net income available to common $ 340,532 $ 540,899 (37) %shareholders

Net income per common share, basic 2.31 3.50 (34) %

Net income per common share, 2.30 3.47 (34) diluted

Cash dividends declared per common 1.32 1.20 10 share

Return on average assets* 0.72 % 1.20 % (48) bps

Return on average common equity* 7.51 12.34 (483)



Weighted average common shares 147,415 154,331 (4) %outstanding, basic

Weighted average common shares 148,210 156,058 (5) 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

Fourth Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

Fourth Quarter

20 vs '19

% Change

Interest income

$

433,479

435,550

451,569

483,897

506,253

(14)

%

Interest expense

47,547

58,560

75,003

110,637

106,985

(56)

Net interest income

385,932

376,990

376,566

373,260

399,268

(3)

Provision for credit losses

11,066

43,383

141,851

158,722

24,470

(55)

Net interest income after provision for credit losses

374,866

333,607

234,715

214,538

374,798

-

Non-interest revenue:

Service charges on deposit accounts

19,063

17,813

15,567

20,689

22,385

(15)

Fiduciary and asset management fees

17,242

15,885

14,950

15,174

15,645

10

Card fees

11,743

10,823

9,186

10,950

11,325

4

Brokerage revenue

11,794

10,604

9,984

12,398

11,106

6

Mortgage banking income

24,426

31,229

23,530

12,227

9,287

163

Capital markets income

4,352

5,690

6,050

11,243

8,972

(51)

Income from bank-owned life insurance

9,725

7,778

7,756

6,038

5,620

73

Investment securities gains (losses), net

2,337

(1,550)

69,409

8,734

(2,157)

nm

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

63

260

8,707

(4,255)

8,100

nm

Other non-interest revenue

14,016

15,879

8,345

10,659

7,672

83

Total non-interest revenue

114,761

114,411

173,484

103,857

97,955

17

Non-interest expense:

Salaries and other personnel expense

153,946

154,994

159,597

149,678

145,084

6

Net occupancy, equipment, and software expense

44,183

41,554

41,727

42,194

42,644

4

Third-party processing and other services

19,569

20,620

21,366

21,480

20,293

(4)

Professional Fees

17,541

13,377

15,305

10,675

9,921

77

FDIC insurance and other regulatory fees

6,288

6,793

6,851

5,278

9,825

(36)

Amortization of intangibles

2,640

2,640

2,640

2,640

2,901

(9)

Goodwill impairment

-

44,877

-

-

-

nm

Restructuring charges

18,068

2,882

2,822

3,220

1,259

nm

Loss on early extinguishment of debt

8,409

154

-

1,904

-

nm

Earnout liability adjustments

-

-

4,908

-

-

nm

Other operating expenses

31,854

28,764

28,925

39,210

34,194

(7)

Total non-interest expense

302,498

316,655

284,141

276,279

266,121

14

Income before income taxes

187,129

131,363

124,058

42,116

206,632

(9)

Income tax expense

36,720

39,789

30,866

3,595

54,948

(33)

Net income

150,409

91,574

93,192

38,521

151,684

(1)

Less: Preferred stock dividends

8,291

8,291

8,291

8,291

8,291

-

Net income available to common shareholders

$

142,118

83,283

84,901

30,230

143,393

(1)

Net income per common share, basic

$

0.96

0.57

0.58

0.21

0.98

(1)

%

Net income per common share, diluted

0.96

0.56

0.57

0.20

0.97

(1)

Cash dividends declared per common share

0.33

0.33

0.33

0.33

0.30

10

Return on average assets *

1.11

%

0.69

0.71

0.32

1.27

(16)

bps

Return on average common equity *

12.31

7.28

7.48

2.75

13.08

(77)

Weighted average common shares outstanding, basic

147,744

147,314

147,288

147,311

146,948

1

%

Weighted average common shares outstanding, diluted

148,725

147,976

147,733

148,401

148,529

-

nm - not meaningful

bps - basis points

* - ratios are annualized

Synovus



INCOME STATEMENT DATA

(Unaudited)



(Dollars inthousands, 2020 2019 Fourthexcept per Quartershare data)

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

Interest $ 433,479 435,550 451,569 483,897 506,253 (14) %income

Interest 47,547 58,560 75,003 110,637 106,985 (56) expense



Net interest 385,932 376,990 376,566 373,260 399,268 (3) income

Provision for 11,066 43,383 141,851 158,722 24,470 (55) credit losses

Net interestincome after 374,866 333,607 234,715 214,538 374,798 - provision forcredit losses



Non-interest revenue:

Servicecharges on 19,063 17,813 15,567 20,689 22,385 (15) depositaccounts

Fiduciary andasset 17,242 15,885 14,950 15,174 15,645 10 managementfees

Card fees 11,743 10,823 9,186 10,950 11,325 4

Brokerage 11,794 10,604 9,984 12,398 11,106 6 revenue

Mortgage 24,426 31,229 23,530 12,227 9,287 163 banking income

Capital 4,352 5,690 6,050 11,243 8,972 (51) markets income

Income frombank-owned 9,725 7,778 7,756 6,038 5,620 73 life insurance

Investmentsecurities 2,337 (1,550) 69,409 8,734 (2,157) nmgains(losses), net

Gain on saleand fair valueincrease/ 63 260 8,707 (4,255) 8,100 nm(decrease) ofprivate equityinvestments

Othernon-interest 14,016 15,879 8,345 10,659 7,672 83 revenue

Totalnon-interest 114,761 114,411 173,484 103,857 97,955 17 revenue



Non-interest expense:

Salaries andother 153,946 154,994 159,597 149,678 145,084 6 personnelexpense

Net occupancy,equipment, and 44,183 41,554 41,727 42,194 42,644 4 softwareexpense

Third-partyprocessing and 19,569 20,620 21,366 21,480 20,293 (4) other services

Professional 17,541 13,377 15,305 10,675 9,921 77 Fees

FDIC insuranceand other 6,288 6,793 6,851 5,278 9,825 (36) regulatoryfees

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

Goodwill - 44,877 - - - nmimpairment

Restructuring 18,068 2,882 2,822 3,220 1,259 nmcharges

Loss on earlyextinguishment 8,409 154 - 1,904 - nmof debt

Earnoutliability - - 4,908 - - nmadjustments

Otheroperating 31,854 28,764 28,925 39,210 34,194 (7) expenses

Totalnon-interest 302,498 316,655 284,141 276,279 266,121 14 expense



Income before 187,129 131,363 124,058 42,116 206,632 (9) income taxes

Income tax 36,720 39,789 30,866 3,595 54,948 (33) expense

Net income 150,409 91,574 93,192 38,521 151,684 (1)

Less:Preferred 8,291 8,291 8,291 8,291 8,291 - stockdividends

Net incomeavailable to $ 142,118 83,283 84,901 30,230 143,393 (1) commonshareholders

Net income percommon share, $ 0.96 0.57 0.58 0.21 0.98 (1) %basic

Net income percommon share, 0.96 0.56 0.57 0.20 0.97 (1) diluted

Cash dividendsdeclared per 0.33 0.33 0.33 0.33 0.30 10 common share

Return onaverage assets 1.11 % 0.69 0.71 0.32 1.27 (16) bps*

Return onaverage common 12.31 7.28 7.48 2.75 13.08 (77) equity *

Weightedaverage commonshares 147,744 147,314 147,288 147,311 146,948 1 %outstanding,basic

Weightedaverage commonshares 148,725 147,976 147,733 148,401 148,529 - outstanding,diluted



nm - not meaningful

bps - basis points

* - ratios are annualized

Synovus

BALANCE SHEET DATA

December 31, 2020

September 30, 2020

December 31, 2019

(Unaudited)

(In thousands, except share data)

ASSETS

Cash and due from banks

$

531,625

$

578,026

$

535,846

Interest-bearing funds with Federal Reserve Bank

3,586,565

1,266,313

553,390

Interest earning deposits with banks

20,944

20,929

20,635

Federal funds sold and securities purchased under resale agreements

113,783

120,095

77,047

Cash and cash equivalents

4,252,917

1,985,363

1,186,918

Investment securities available for sale, at fair value

7,962,438

7,566,525

6,778,670

Loans held for sale ($216,647, $285,899, and $115,173 measured at fair value, respectively)

760,123

745,160

115,173

Loans, net of deferred fees and costs

38,252,984

39,549,847

37,162,450

Allowance for loan losses

(605,736)

(603,800)

(281,402)

Loans, net

37,647,248

38,946,047

36,881,048

Cash surrender value of bank-owned life insurance

1,049,373

1,044,046

775,665

Premises and equipment, net

463,959

471,208

493,940

Goodwill

452,390

452,390

497,267

Other intangible assets, net

45,112

47,752

55,671

Other assets

1,732,526

1,782,047

1,418,930

Total assets

$

54,366,086

$

53,040,538

$

48,203,282

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Deposits:

Non-interest-bearing deposits

$

13,477,854

$

13,075,081

$

9,439,485

Interest-bearing deposits

33,213,717

31,590,823

28,966,019

Total deposits

46,691,571

44,665,904

38,405,504

Federal funds purchased and securities sold under repurchase agreements

227,922

202,344

165,690

Other short-term borrowings

7,717

400,000

1,753,560

Long-term debt

1,202,494

1,628,385

2,153,897

Other liabilities

1,075,048

1,079,363

782,941

Total liabilities

49,204,752

47,975,996

43,261,592

Shareholders' equity:

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

537,145

537,145

537,145

Common stock - $1.00 par value. Authorized 342,857,143 shares; issued 168,132,522, 167,410,950, and 166,800,623; outstanding 148,039,495, 147,317,923, and 147,157,596

168,133

167,411

166,801

Additional paid-in capital

3,851,208

3,832,142

3,819,336

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

(731,806)

(731,806)

(715,560)

Accumulated other comprehensive income, net

158,635

174,914

65,641

Retained earnings

1,178,019

1,084,736

1,068,327

Total shareholders' equity

5,161,334

5,064,542

4,941,690

Total liabilities and shareholders' equity

$

54,366,086

$

53,040,538

$

48,203,282

Synovus





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

(Unaudited)



(In thousands, except share data)

ASSETS

Cash and due from banks $ 531,625 $ 578,026 $ 535,846

Interest-bearing funds with 3,586,565 1,266,313 553,390 Federal Reserve Bank

Interest earning deposits 20,944 20,929 20,635 with banks

Federal funds sold andsecurities purchased under 113,783 120,095 77,047 resale agreements

Cash and cash equivalents 4,252,917 1,985,363 1,186,918



Investment securitiesavailable for sale, at fair 7,962,438 7,566,525 6,778,670 value

Loans held for sale($216,647, $285,899, and 760,123 745,160 115,173 $115,173 measured at fairvalue, respectively)

Loans, net of deferred fees 38,252,984 39,549,847 37,162,450 and costs

Allowance for loan losses (605,736) (603,800) (281,402)

Loans, net 37,647,248 38,946,047 36,881,048



Cash surrender value of 1,049,373 1,044,046 775,665 bank-owned life insurance

Premises and equipment, net 463,959 471,208 493,940

Goodwill 452,390 452,390 497,267

Other intangible assets, net 45,112 47,752 55,671

Other assets 1,732,526 1,782,047 1,418,930

Total assets $ 54,366,086 $ 53,040,538 $ 48,203,282



LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Deposits:

Non-interest-bearing $ 13,477,854 $ 13,075,081 $ 9,439,485 deposits

Interest-bearing deposits 33,213,717 31,590,823 28,966,019

Total deposits 46,691,571 44,665,904 38,405,504



Federal funds purchased andsecurities sold under 227,922 202,344 165,690 repurchase agreements

Other short-term borrowings 7,717 400,000 1,753,560

Long-term debt 1,202,494 1,628,385 2,153,897

Other liabilities 1,075,048 1,079,363 782,941

Total liabilities 49,204,752 47,975,996 43,261,592



Shareholders' equity:

Preferred Stock - no parvalue. Authorized 537,145 537,145 537,145 100,000,000 shares; issued22,000,000

Common stock - $1.00 parvalue. Authorized342,857,143 shares; issued168,132,522, 167,410,950, 168,133 167,411 166,801 and 166,800,623; outstanding148,039,495, 147,317,923,and 147,157,596

Additional paid-in capital 3,851,208 3,832,142 3,819,336

Treasury stock, at cost -20,093,027, 20,093,027, and (731,806) (731,806) (715,560) 19,643,027 shares

Accumulated other 158,635 174,914 65,641 comprehensive income, net

Retained earnings 1,178,019 1,084,736 1,068,327

Total shareholders' equity 5,161,334 5,064,542 4,941,690

Total liabilities and $ 54,366,086 $ 53,040,538 $ 48,203,282 shareholders' equity

Synovus

AVERAGE BALANCES AND YIELDS/RATES (1)

(Unaudited)

(Dollars in thousands)

2020

2019

Fourth

Third

Second

First

Fourth

Quarter

Quarter

Quarter

Quarter

Quarter

Interest Earning Assets

Investment securities (2) (4)

$

7,493,822

7,227,400

6,618,533

6,680,047

6,696,768

Yield

2.07

%

2.39

2.72

3.09

3.12

Trading account assets (5)

$

8,496

5,391

6,173

6,306

7,986

Yield

1.03

%

1.69

2.19

2.70

2.69

Commercial loans (3) (4)

$

30,363,102

30,730,135

30,236,919

27,607,343

26,698,202

Yield

3.96

%

3.80

3.95

4.57

4.82

Consumer loans (3)

$

8,521,449

9,032,437

9,899,172

9,985,702

9,809,832

Yield

4.00

%

4.08

4.34

4.60

5.07

Allowance for loan losses

$

(595,547)

(591,098)

(498,545)

(368,033)

(269,052)

Loans, net (3)

$

38,289,004

39,171,474

39,637,546

37,225,012

36,238,982

Yield

4.03

%

3.92

4.08

4.62

4.93

Mortgage loans held for sale

$

309,278

244,952

221,157

86,415

117,909

Yield

2.74

%

2.92

3.09

3.67

3.77

Other loans held for sale

$

544,301

493,940

19,246

-

-

Yield

2.81

%

3.61

4.19

-

-

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

$

2,716,645

1,265,880

1,709,086

652,130

514,635

Yield

0.10

%

0.11

0.11

1.02

1.71

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

$

162,537

200,923

247,801

284,082

278,586

Yield

2.64

%

2.73

3.60

3.38

2.85

Total interest earning assets

$

49,524,083

48,609,960

48,459,542

44,933,992

43,854,866

Yield

3.49

%

3.58

3.75

4.33

4.60

Interest-Bearing Liabilities

Interest-bearing demand deposits

$

8,531,415

7,789,095

7,260,940

6,445,986

6,381,282

Rate

0.16

%

0.19

0.21

0.51

0.60

Money Market accounts

$

14,411,860

13,272,972

12,238,479

11,548,014

10,526,296

Rate

0.26

%

0.36

0.46

1.00

1.13

Savings deposits

$

1,147,667

1,114,956

1,036,024

926,822

915,640

Rate

0.01

%

0.02

0.02

0.05

0.05

Time deposits under $100,000

$

1,239,592

1,379,923

1,621,943

1,761,741

1,873,350

Rate

0.74

%

1.03

1.43

1.64

1.27

Time deposits over $100,000

$

3,302,959

3,863,821

4,772,555

5,051,705

5,198,266

Rate

1.03

%

1.44

1.80

2.04

1.51

Other brokered deposits

$

1,978,393

1,912,114

1,998,571

1,376,669

1,156,131

Rate

0.23

%

0.23

0.25

1.42

1.84

Brokered time deposits

$

1,795,982

2,232,940

2,244,429

2,166,496

2,121,069

Rate

1.60

%

1.59

1.86

2.11

2.16

Total interest-bearing deposits

$

32,407,868

31,565,821

31,172,941

29,277,433

28,172,034

Rate

0.39

%

0.54

0.73

1.18

1.16

Federal funds purchased and securities sold under repurchase agreements

$

174,316

180,342

250,232

167,324

192,731

Rate

0.07

%

0.09

0.12

0.30

0.24

Other short-term borrowings

$

-

46,739

550,000

1,384,362

1,565,507

Rate

-

%

1.12

1.23

1.66

1.87

Long-term debt

$

1,552,791

2,234,665

2,834,188

2,678,651

2,153,983

Rate

3.96

%

2.71

2.36

2.78

3.07

Total interest-bearing liabilities

$

34,134,975

34,027,567

34,807,361

33,507,770

32,084,255

Rate

0.55

%

0.68

0.86

1.30

1.30

Non-interest-bearing demand deposits

$

13,566,112

12,773,676

11,923,534

9,409,774

9,706,784

Cost of funds

0.40

%

0.50

0.65

1.04

1.02

Net interest margin

3.12

%

3.10

3.13

3.37

3.65

Taxable equivalent adjustment

$

821

956

861

786

769

(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)

(Dollars in thousands)

2020 2019

Fourth Third Second First Fourth

Quarter Quarter Quarter Quarter Quarter

Interest Earning Assets

Investment $ 7,493,822 7,227,400 6,618,533 6,680,047 6,696,768 securities^ (2) (4)

Yield 2.07 % 2.39 2.72 3.09 3.12

Trading account $ 8,496 5,391 6,173 6,306 7,986 assets ^(5)

Yield 1.03 % 1.69 2.19 2.70 2.69

Commercial loans ^ $ 30,363,102 30,730,135 30,236,919 27,607,343 26,698,202 (3) (4)

Yield 3.96 % 3.80 3.95 4.57 4.82

Consumer loans ^(3) $ 8,521,449 9,032,437 9,899,172 9,985,702 9,809,832

Yield 4.00 % 4.08 4.34 4.60 5.07

Allowance for loan $ (595,547) (591,098) (498,545) (368,033) (269,052) losses

Loans, net ^(3) $ 38,289,004 39,171,474 39,637,546 37,225,012 36,238,982

Yield 4.03 % 3.92 4.08 4.62 4.93

Mortgage loans held $ 309,278 244,952 221,157 86,415 117,909 for sale

Yield 2.74 % 2.92 3.09 3.67 3.77

Other loans held for $ 544,301 493,940 19,246 - - sale

Yield 2.81 % 3.61 4.19 - -

Federal funds sold, due from Federal Reserve Bank, and $ 2,716,645 1,265,880 1,709,086 652,130 514,635 other short-term investments

Yield 0.10 % 0.11 0.11 1.02 1.71

Federal Home Loan Bank and Federal $ 162,537 200,923 247,801 284,082 278,586 Reserve Bank Stock ^ (5)

Yield 2.64 % 2.73 3.60 3.38 2.85

Total interest $ 49,524,083 48,609,960 48,459,542 44,933,992 43,854,866 earning assets

Yield 3.49 % 3.58 3.75 4.33 4.60

Interest-Bearing Liabilities

Interest-bearing $ 8,531,415 7,789,095 7,260,940 6,445,986 6,381,282 demand deposits

Rate 0.16 % 0.19 0.21 0.51 0.60

Money Market $ 14,411,860 13,272,972 12,238,479 11,548,014 10,526,296 accounts

Rate 0.26 % 0.36 0.46 1.00 1.13

Savings deposits $ 1,147,667 1,114,956 1,036,024 926,822 915,640

Rate 0.01 % 0.02 0.02 0.05 0.05

Time deposits under $ 1,239,592 1,379,923 1,621,943 1,761,741 1,873,350 $100,000

Rate 0.74 % 1.03 1.43 1.64 1.27

Time deposits over $ 3,302,959 3,863,821 4,772,555 5,051,705 5,198,266 $100,000

Rate 1.03 % 1.44 1.80 2.04 1.51

Other brokered $ 1,978,393 1,912,114 1,998,571 1,376,669 1,156,131 deposits

Rate 0.23 % 0.23 0.25 1.42 1.84

Brokered time $ 1,795,982 2,232,940 2,244,429 2,166,496 2,121,069 deposits

Rate 1.60 % 1.59 1.86 2.11 2.16

Total interest-bearing $ 32,407,868 31,565,821 31,172,941 29,277,433 28,172,034 deposits

Rate 0.39 % 0.54 0.73 1.18 1.16

Federal funds purchased and securities sold $ 174,316 180,342 250,232 167,324 192,731 under repurchase agreements

Rate 0.07 % 0.09 0.12 0.30 0.24

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

Rate - % 1.12 1.23 1.66 1.87

Long-term debt $ 1,552,791 2,234,665 2,834,188 2,678,651 2,153,983

Rate 3.96 % 2.71 2.36 2.78 3.07

Total interest-bearing $ 34,134,975 34,027,567 34,807,361 33,507,770 32,084,255 liabilities

Rate 0.55 % 0.68 0.86 1.30 1.30

Non-interest-bearing $ 13,566,112 12,773,676 11,923,534 9,409,774 9,706,784 demand deposits

Cost of funds 0.40 % 0.50 0.65 1.04 1.02

Net interest margin 3.12 % 3.10 3.13 3.37 3.65

Taxable equivalent $ 821 956 861 786 769 adjustment



^(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

December 31, 2020

September 30, 2020

% Change

December 31, 2019

% Change

Commercial, Financial, and Agricultural

$

12,574,899

$

13,120,038

(4)

%

$

10,239,559

23

%

Owner-Occupied

6,798,780

6,894,113

(1)

6,529,811

4

Total Commercial & Industrial

19,373,679

20,014,151

(3)

16,769,370

16

Multi-Family

2,197,942

2,365,118

(7)

1,989,096

10

Hotels

1,444,264

1,409,424

2

1,284,291

12

Office Buildings

2,261,253

2,313,346

(2)

2,255,308

-

Shopping Centers

1,607,223

1,698,993

(5)

1,785,616

(10)

Warehouses

702,020

730,253

(4)

703,705

-

Other Investment Property

1,133,828

1,145,313

(1)

986,311

15

Total Investment Properties

9,346,530

9,662,447

(3)

9,004,327

4

1-4 Family Construction

183,373

180,406

2

284,594

(36)

1-4 Family Investment Mortgage

445,795

474,632

(6)

495,421

(10)

Total 1-4 Family Properties

629,168

655,038

(4)

780,015

(19)

Commercial Development

130,802

111,493

17

103,643

26

Residential Development

245,776

260,313

(6)

282,677

(13)

Land Acquisition

218,158

276,584

(21)

323,122

(32)

Land and Development

594,736

648,390

(8)

709,442

(16)

Total Commercial Real Estate

10,570,434

10,965,875

(4)

10,493,784

1

Consumer Mortgages

5,507,700

5,658,525

(3)

5,546,368

(1)

Home Equity Lines

1,523,836

1,615,207

(6)

1,713,157

(11)

Credit Cards

281,018

264,829

6

268,841

5

Other Consumer Loans

1,073,989

1,130,237

(5)

2,396,294

(55)

Total Consumer

8,386,543

8,668,798

(3)

9,924,660

(15)

Unearned Income

(77,672)

(98,977)

(22)

(25,364)

206

Total

$

38,252,984

$

39,549,847

(3)

%

$

37,162,450

3

%

NON-PERFORMING LOANS COMPOSITION (1)

(Unaudited)

(Dollars in thousands)

TotalNon-performing Loans

Total Non-performing Loans

Linked Quarter

Total Non-performing Loans

Year/Year

Loan Type

December 31, 2020

September 30, 2020

% Change

December 31, 2019

% Change

Commercial, Financial, and Agricultural

$

77,386

$

95,365

(19)

%

$

56,186

38

%

Owner-Occupied

20,019

20,261

(1)

9,780

105

Total Commercial & Industrial

97,405

115,626

(16)

65,966

48

Multi-Family

168

157

7

385

(56)

Office Buildings

1,134

27,608

(96)

600

89

Shopping Centers

21,082

257

nm

718

nm

Warehouses

217

-

nm

-

nm

Other Investment Property

2,030

238

753

321

532

Total Investment Properties

24,631

28,260

(13)

2,024

nm

1-4 Family Construction

1,236

1,556

(21)

698

77

1-4 Family Investment Mortgage

2,383

1,815

31

1,555

53

Total 1-4 Family Properties

3,619

3,371

7

2,253

61

Commercial Development

582

833

(30)

87

569

Residential Development

533

648

(18)

395

35

Land Acquisition

1,048

910

15

628

67

Land and Development

2,163

2,391

(10)

1,110

95

Total Commercial Real Estate

30,413

34,022

(11)

5,387

465

Consumer Mortgages

8,740

7,433

18

12,545

(30)

Home Equity Lines

12,145

10,297

18

12,034

1

Other Consumer Loans

2,376

1,459

63

5,704

(58)

Total Consumer

23,261

19,189

21

30,283

(23)

Total

$

151,079

$

168,837

(11)

%

$

101,636

49

%

Synovus

LOANSOUTSTANDING BY TYPE

(Unaudited)

(Dollars in thousands)

Total Loans Total Loans Linked Total Loans Year/ Quarter Year

Loan Type December 31, September 30, % December 31, % 2020 2020 Change 2019 Change

Commercial,Financial, and $ 12,574,899 $ 13,120,038 (4) % $ 10,239,559 23 %Agricultural

Owner-Occupied 6,798,780 6,894,113 (1) 6,529,811 4

TotalCommercial & 19,373,679 20,014,151 (3) 16,769,370 16 Industrial



Multi-Family 2,197,942 2,365,118 (7) 1,989,096 10

Hotels 1,444,264 1,409,424 2 1,284,291 12

Office 2,261,253 2,313,346 (2) 2,255,308 - Buildings

Shopping 1,607,223 1,698,993 (5) 1,785,616 (10) Centers

Warehouses 702,020 730,253 (4) 703,705 -

OtherInvestment 1,133,828 1,145,313 (1) 986,311 15 Property

TotalInvestment 9,346,530 9,662,447 (3) 9,004,327 4 Properties



1-4 Family 183,373 180,406 2 284,594 (36) Construction

1-4 FamilyInvestment 445,795 474,632 (6) 495,421 (10) Mortgage

Total 1-4Family 629,168 655,038 (4) 780,015 (19) Properties



Commercial 130,802 111,493 17 103,643 26 Development

Residential 245,776 260,313 (6) 282,677 (13) Development

Land 218,158 276,584 (21) 323,122 (32) Acquisition

Land and 594,736 648,390 (8) 709,442 (16) Development



TotalCommercial 10,570,434 10,965,875 (4) 10,493,784 1 Real Estate



Consumer 5,507,700 5,658,525 (3) 5,546,368 (1) Mortgages

Home Equity 1,523,836 1,615,207 (6) 1,713,157 (11) Lines

Credit Cards 281,018 264,829 6 268,841 5

Other Consumer 1,073,989 1,130,237 (5) 2,396,294 (55) Loans

Total Consumer 8,386,543 8,668,798 (3) 9,924,660 (15)



Unearned (77,672) (98,977) (22) (25,364) 206 Income



Total $ 38,252,984 $ 39,549,847 (3) % $ 37,162,450 3 %





NON-PERFORMING LOANS COMPOSITION ^(1)

(Unaudited)

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



Loan Type December 31, September 30, % December 31, % 2020 2020 Change 2019 Change

Commercial,Financial, and $ 77,386 $ 95,365 (19) % $ 56,186 38 %Agricultural

Owner-Occupied 20,019 20,261 (1) 9,780 105

TotalCommercial & 97,405 115,626 (16) 65,966 48 Industrial



Multi-Family 168 157 7 385 (56)

Office 1,134 27,608 (96) 600 89 Buildings

Shopping 21,082 257 nm 718 nmCenters

Warehouses 217 - nm - nm

OtherInvestment 2,030 238 753 321 532 Property

TotalInvestment 24,631 28,260 (13) 2,024 nmProperties



1-4 Family 1,236 1,556 (21) 698 77 Construction

1-4 FamilyInvestment 2,383 1,815 31 1,555 53 Mortgage

Total 1-4Family 3,619 3,371 7 2,253 61 Properties



Commercial 582 833 (30) 87 569 Development

Residential 533 648 (18) 395 35 Development

Land 1,048 910 15 628 67 Acquisition

Land and 2,163 2,391 (10) 1,110 95 Development



TotalCommercial 30,413 34,022 (11) 5,387 465 Real Estate



Consumer 8,740 7,433 18 12,545 (30) Mortgages

Home Equity 12,145 10,297 18 12,034 1 Lines

Other Consumer 2,376 1,459 63 5,704 (58) Loans

Total Consumer 23,261 19,189 21 30,283 (23)



Total $ 151,079 $ 168,837 (11) % $ 101,636 49 %



Synovus

CREDIT QUALITY DATA

(Unaudited)

(Dollars in thousands)

2020

2019

Fourth Quarter

Fourth

Third

Second

First

Fourth

20 vs '19

Quarter

Quarter

Quarter

Quarter

Quarter

% Change

Non-performing Loans (NPL)

$

151,079

168,837

147,437

156,287

101,636

49

Impaired Loans Held for Sale

23,590

-

-

-

-

nm

Other Real Estate and Other Assets

17,394

23,280

30,242

33,679

35,810

(51)

Non-performing Assets (NPAs)

192,063

192,117

177,679

189,966

137,446

40

Allowance for Loan Losses (ALL)

605,736

603,800

588,648

493,452

281,402

115

Reserve for Unfunded Commitments

47,785

60,794

61,029

38,420

1,375

nm

Allowance for Credit Losses (ACL)

653,521

664,594

649,677

531,872

282,777

131

Net Charge-Offs - Quarter

22,139

28,466

24,046

20,061

8,821

Net Charge-Offs - YTD

94,712

72,573

44,107

20,061

57,612

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

0.23

%

0.29

0.24

0.21

0.10

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

0.24

0.25

0.23

0.21

0.16

NPLs / Loans

0.39

0.43

0.37

0.41

0.27

NPAs / Loans, ORE and specific other assets

0.50

0.49

0.44

0.50

0.37

ACL/Loans

1.71

1.68

1.63

1.39

0.76

ALL/Loans

1.58

1.53

1.47

1.29

0.76

ACL/NPLs

432.57

393.63

440.65

340.32

278.23

ALL/NPLs

400.94

357.62

399.25

315.74

276.87

Past Due Loans over 90 days and Still Accruing

$

4,117

7,512

8,391

6,398

15,943

(74)

As a Percentage of Loans Outstanding

0.01

%

0.02

0.02

0.02

0.04

Total Past Due Loans and Still Accruing

$

47,349

57,316

46,390

83,235

123,793

(62)

As a Percentage of Loans Outstanding

0.12

%

0.14

0.12

0.22

0.33

Accruing Troubled Debt Restructurings (TDRs)

$

134,972

163,511

166,461

160,128

133,145

1

(1) Ratio is annualized.

SELECTED CAPITAL INFORMATION (1)

(Unaudited)

(Dollars in thousands)

December 31, 2020

September 30, 2020

December 31, 2019

Tier 1 Capital

$

4,572,173

4,450,547

4,280,604

Total Risk-Based Capital

5,604,043

5,536,918

5,123,381

Common Equity Tier 1 Capital Ratio

9.67

%

9.30

8.95

Tier 1 Capital Ratio

10.95

10.57

10.23

Total Risk-Based Capital Ratio

13.43

13.16

12.25

Tier 1 Leverage Ratio

8.50

8.48

9.16

Common Equity as a Percentage of Total Assets (2)

8.51

8.54

9.14

Tangible Common Equity Ratio (3) (5)

7.66

7.67

8.08

Book Value Per Common Share (4)

$

31.24

30.73

29.93

Tangible Book Value Per Common Share (3)

27.88

27.34

26.17

(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.

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