Business Wire | Apr 20, 2021 06:30AM EDT

Synovus Announces Earnings for the First Quarter 2021

Apr. 20, 2021

COLUMBUS, Ga.--(BUSINESS WIRE)--Apr. 20, 2021--Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended March 31, 2021.

First Quarter 2021 Highlights

* Net income available to common shareholders of $178.8 million or $1.19 per diluted share, up $0.23 sequentially and $0.99 compared to prior year. Adjusted diluted EPS of $1.21, up $0.13 sequentially and $1.00 compared to prior year. * Period-end loans increased $552.1 million or 1% sequentially. Paycheck Protection Program (PPP) loans increased $170.1 million and third-party consumer loan balances, including a prime auto purchase of $476 million, increased $503.2 million sequentially. * Core transaction deposits (non-interest bearing, NOW/savings, and money market deposits excluding public and brokered funds) increased $2.05 billion or 6% sequentially. * Total deposit costs of 0.22% down 6 bps sequentially due to ongoing repricing and product remixing. * Net interest income of $373.9 million declined $12.1 million sequentially as lower deposit costs and deployment of excess liquidity partially offset a lower day count, continued fixed-rate asset repricing, and accelerated prepayment activity. Net interest margin of 3.04% vs 3.12% sequentially. * Non-interest revenue declined $3.8 million sequentially and increased $7.1 million compared to prior year. Adjusted non-interest revenue increased $0.6 million sequentially as broad-based growth helped offset normalization of net mortgage revenue. * Non-interest expense declined $35.4 million sequentially and $9.1 million compared to prior year. Adjusted non-interest expense declined $8.5 million sequentially led by reduction in professional fees, partially offset by seasonal increases in payroll taxes and benefits. * Reversal of provision for credit losses of $18.6 million, primarily from a more favorable economic outlook. Allowance for credit losses coverage ratio (to loans) of 1.58%, or 1.69% excluding PPP loans. * Credit quality metrics remain relatively stable with a net charge-off ratio of 0.21%; non-performing assets, non-performing loans, and past dues remained near prior cycle lows. * Preliminary CET1 ratio increased 8 bps sequentially to 9.74%, with strong core earnings helping offset a $1.20 billion increase in risk-weighted assets. * In April, executed share repurchases of approximately $10 million as part of the $200 million authorization for 2021.

First Quarter Summary

Reported Adjusted

(dollars in 1Q21 4Q20 1Q20 1Q21 4Q20 1Q20thousands)

Net incomeavailable to $ 178,802 $ 142,118 $ 30,230 $ 180,685 $ 160,618 $ 30,708 commonshareholders

Dilutedearnings per 1.19 0.96 0.20 1.21 1.08 0.21 share

Total loans 38,805,101 38,252,984 38,258,024 N/A N/A N/A

Total 47,368,951 46,691,571 39,826,585 N/A N/A N/Adeposits

Total FTE 485,587 501,514 477,903 487,577 499,114 473,424 revenue

Return on 1.40 % 1.11 % 0.32 % 1.41 % 1.25 % 0.32 %avg assets

Return onavg common 15.77 12.31 2.75 15.93 13.91 2.79 equity

Return onavg tangible 17.85 14.00 3.34 18.04 15.79 3.39 commonequity

Net interest 3.04 3.12 3.37 N/A N/A N/Amargin

Efficiency 55.01 60.32 57.81 54.19 54.60 56.72 ratio

NCO ratio 0.21 0.23 0.21 N/A N/A N/A

NPA ratio 0.50 0.50 0.50 N/A N/A N/A

"Our results in the first quarter of 2021 reflect strong financial performance as we continue to position the company for long-term growth," said Kessel Stelling, Synovus Chairman and CEO. "Solid earnings drove capital growth, core transaction deposits grew $2 billion from the previous quarter, credit quality remained strong, and our efficiency initiatives enabled additional investments in improving the customer experience. We continued to support our customers and communities through the Paycheck Protection Program in the first quarter, including approximately $1 billion in phase two fundings. As the economic recovery accelerates and Kevin Blair steps in as CEO, the energy and optimism among our team are high, and I have never been more confident in our future."

Kevin Blair, Synovus President and COO, said, "I'm honored for the opportunity to lead this exceptional team, and to build upon our strong foundation in driving growth as we deliver differentiated, value-adding solutions and advice to attract and build relationships with our clients."

Balance Sheet

Loans^*



(dollars Linked Linked Year/in 1Q21 4Q20 Quarter Quarter 1Q20 Year/Year Yearmillions) Change % Change % Change Change

Commercial& $ 19,693.8 $ 19,520.2 $ 173.7 1 % $ 17,810.3 $ 1,883.5 11 %industrial

Commercialreal 10,533.9 10,325.7 208.2 2 10,475.4 58.6 1 estate

Consumer 8,577.3 8,407.1 170.2 2 9,972.3 (1,395.0 ) (14 )

Total $ 38,805.1 $ 38,253.0 $ 552.1 1 % $ 38,258.0 $ 547.1 1 %loans

^*Amountsmay nottotal due torounding

* Total loans ended the quarter at $38.81 billion, up $552.1 million or 1% sequentially. * Commercial and industrial (C&I) loan growth of $173.7 million sequentially. Total PPP loans increased by $170.1 million. Phase 1 forgiveness of $711 million, or $687 million net of unearned, and Phase 2 fundings of $894 million, or $857 million net of unearned. C&I line utilization remains near historic lows ~40%. * CRE loans increased $208.2 million as the recovery in commercial real estate continues. * Consumer loans increased $170.2 million sequentially, with a prime auto portfolio purchase of $476 million partially offset by declines in consumer mortgages and HELOCs of $214.3 million and $105.4 million, respectively.

Deposits^*



Linked Linked Year/(dollars in 1Q21 4Q20 Quarter Quarter 1Q20 Year/Year Yearmillions) Change % Change % Change Change

Non-interest-bearing $ 13,742.1 $ 12,382.7 $ 1,359.4 11 % $ 8,968.8 $ 4,773.3 53 %DDA

Interest-bearing DDA 5,841.7 5,674.4 167.3 3 4,617.4 1,224.4 27

Money market 13,943.7 13,541.2 402.5 3 10,255.0 3,688.7 36

Savings 1,277.0 1,156.2 120.8 10 949.5 327.6 35

Public funds 6,154.9 6,760.6 (605.7 ) (9 ) 5,261.4 893.6 17

Time deposits 3,214.8 3,605.9 (391.2 ) (11 ) 5,786.6 (2,571.9 ) (44 )

Brokered deposits 3,194.7 3,570.4 (375.7 ) (11 ) 3,987.9 (793.3 ) (20 )

Total deposits $ 47,369.0 $ 46,691.6 $ 677.4 1 % $ 39,826.6 $ 7,542.4 19 %

^*Amounts may nottotal due to rounding

* Total deposits ended the quarter at $47.37 billion, up $677.4 million or 1% sequentially. * Core transaction deposits increased $2.05 billion or 6% sequentially. Broad-based growth in all categories including MMA, DDA, NOW, and savings supported declines in higher cost deposits. * Total deposit costs declined 6 bps to 0.22% sequentially.

Income Statement Summary^**



(in Linked Linked Year/thousands, 1Q21 4Q20 Quarter Quarter 1Q20 Year/Year Yearexcept per Change % Change %share data) Change Change

Net interest $ 373,857 $ 385,932 $ (12,075 ) (3 )% $ 373,260 $ 597 - %income

Non-interest 110,956 114,761 (3,805 ) (3 ) 103,857 7,099 7 revenue

Non-interest 267,134 302,498 (35,364 ) (12 ) 276,279 (9,145 ) (3 )expense

(Reversalof)provision (18,575 ) 11,066 (29,641 ) nm 158,722 (177,297 ) nm for creditlosses

Income $ 236,254 $ 187,129 $ 49,125 26 % $ 42,116 $ 194,138 461 %before taxes

Income tax 49,161 36,720 12,441 34 3,595 45,566 nmexpense

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

Net incomeavailable to $ 178,802 $ 142,118 $ 36,684 26 % $ 30,230 $ 148,572 491 %commonshareholders

Weightedaveragecommon 149,780 148,725 1,055 1 % 148,401 1,379 1 %sharesoutstanding,diluted

Dilutedearnings per $ 1.19 $ 0.96 $ 0.23 25 $ 0.20 $ 0.99 486 share

Adjusteddiluted 1.21 1.08 0.13 12 0.21 1.00 483 earnings pershare

^** Amountsmay nottotal due to rounding

Core Performance

* Net interest income of $373.9 million in the first quarter, down $12.1 million sequentially as lower deposit costs and deployment of excess liquidity helped offset declines from continued fixed-rate repricing and accelerated prepayment activity. Net PPP fee accretion of $24.9 million, up $0.1 million sequentially. Net interest margin was 3.04%, down 8 bps sequentially. * Non-interest revenue decreased $3.8 million, or 3% sequentially, and increased $7.1 million, or 7% compared to prior year. Adjusted non-interest revenue increased $0.6 million, or 1% sequentially, and $13.6 million, or 14% compared to prior year. Broad-based growth including $3.2 million in capital markets income helped offset normalization of net mortgage revenue, which declined $2.1 million sequentially. * Non-interest expense decreased $35.4 million, or 12% sequentially. Adjusted non-interest expense decreased $8.5 million, or 3% sequentially. Seasonal increases in employment-related expenses such as payroll taxes and benefits more than offset by lower headcount and day count as well as lower professional fees associated with Synovus Forward and COVID/PPP. * Reversal of provision for credit losses of $18.6 million; allowance for credit losses coverage ratio (to loans) of 1.58%, or 1.69% excluding PPP loans. * Tax expense was $49.2 million, an increase of $12.4 million driven by higher taxable income. Effective tax rate of 20.81%.

Capital Ratios



1Q21 4Q20 1Q20

Common equity Tier 1 capital (CET1) ratio 9.74 % ^* 9.66 % 8.70 %

Tier 1 capital ratio 10.99 ^* 10.95 9.95

Total risk-based capital ratio 13.34 ^* 13.42 12.29

Tier 1 leverage ratio 8.80 ^* 8.50 8.92

Tangible common equity ratio 7.55 7.66 7.94

* Ratios are preliminary.

Capital

* CET1 ratio improved 8 bps during the quarter to 9.74% as strong core performance helped offset a $1.20 billion increase in risk-weighted assets. * Total risk-based capital ratio of 13.34% declined 8 bps from the prior quarter following a reduction in the ACL.

First Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on April 20, 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 $55 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 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, 2020, 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; total adjusted revenue; adjusted tangible efficiency ratio; adjusted net income available to common shareholders; adjusted diluted earnings per 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 FTE revenue; efficiency ratio-FTE; net income available to common shareholders; diluted earnings per 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. Total adjusted revenue and adjusted non-interest revenue are measures used by management to evaluate total FTE revenue and non-interest revenue exclusive of net investment securities gains (losses) 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 diluted earnings per 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) 1Q21 4Q20 1Q20

Adjusted non-interest revenue

Total non-interest revenue $ 110,956 $ 114,761 $ 103,857

Add/subtract: Investment securities 1,990 (2,337 ) (8,734 )losses (gains), net

Subtract/add: Fair value (increase) - (63 ) 4,255 decrease of private equity investments

Adjusted non-interest revenue $ 112,946 $ 112,361 $ 99,378



Adjusted non-interest expense

Total non-interest expense $ 267,134 $ 302,498 $ 276,279

Subtract: Restructuring charges (531 ) (18,068 ) (3,220 )

Subtract: Valuation adjustment to Visa - (890 ) - derivative

Subtract: Loss on early extinguishment - (8,409 ) (1,904 )of debt

Adjusted non-interest expense $ 266,603 $ 275,131 $ 271,155



Reconciliation of Non-GAAP Financial Measures, continued



(dollars in thousands) 1Q21 4Q20 1Q20

Total adjusted revenue and adjusted tangible efficiency ratio

Adjusted non-interest expense $ 266,603 $ 275,131 $ 271,155

Subtract: Amortization of intangibles (2,379 ) (2,640 ) (2,640 )

Adjusted tangible non-interest expense $ 264,224 $ 272,491 $ 268,515



Net interest income $ 373,857 $ 385,932 $ 373,260

Add: Tax equivalent adjustment 774 821 786

Add: Total non-interest revenue 110,956 114,761 103,857

Total FTE revenue 485,587 501,514 477,903

Add/subtract: Investment securities 1,990 (2,337 ) (8,734 )losses (gains), net

Subtract/add: Fair value (increase) - (63 ) 4,255 decrease of private equity investments

Total adjusted revenue $ 487,577 $ 499,114 $ 473,424

Efficiency ratio-FTE 55.01 % 60.32 % 57.81 %

Adjusted tangible efficiency ratio 54.19 54.60 56.72

Adjusted return on average assets

Net income

$

187,093

$

150,409

$

38,521

Add: Restructuring charges

531

18,068

3,220

Add: Valuation adjustment to Visa derivative

-

890

-

Add: Loss on early extinguishment of debt

-

8,409

1,904

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

1,990

(2,337

)

(8,734

)

Subtract/add: Fair value (increase) decrease of private equity investments

-

(63

)

4,255

Subtract: Tax effect of adjustments (1)

(638

)

(6,467

)

(167

)

Adjusted net income

$

188,976

$

168,909

$

38,999

Net income annualized

$

758,766

$

598,366

$

154,931

Adjusted net income annualized

$

766,403

$

671,964

$

156,853

Total average assets

$

54,188,504

$

53,833,909

$

48,696,595

Return on average assets

1.40

%

1.11

%

0.32

%

Adjusted return on average assets

1.41

1.25

0.32

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

Net income available to common shareholders

$

178,802

$

142,118

$

30,230

Add: Restructuring charges

531

18,068

3,220

Add: Valuation adjustment to Visa derivative

-

890

-

Add: Loss on early extinguishment of debt

-

8,409

1,904

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

1,990

(2,337

)

(8,734

)

Subtract/add: Fair value (increase) decrease of private equity investments

-

(63

)

4,255

Subtract: Tax effect of adjustments (1)

(638

)

(6,467

)

(167

)

Adjusted net income available to common shareholders

$

180,685

$

160,618

$

30,708

Weighted average common shares outstanding, diluted

149,780

148,725

148,401

Diluted earnings per share

$

1.19

$

0.96

$

0.20

Adjusted diluted earnings per share

1.21

1.08

0.21

Adjusted return on average assets

Net income $ 187,093 $ 150,409 $ 38,521

Add: Restructuring charges 531 18,068 3,220

Add: Valuation adjustment to - 890 - Visa derivative

Add: Loss on early - 8,409 1,904 extinguishment of debt

Add/subtract: Investment 1,990 (2,337 ) (8,734 )securities losses (gains), net

Subtract/add: Fair value(increase) decrease of private - (63 ) 4,255 equity investments

Subtract: Tax effect of (638 ) (6,467 ) (167 )adjustments ^(1)

Adjusted net income $ 188,976 $ 168,909 $ 38,999

Net income annualized $ 758,766 $ 598,366 $ 154,931

Adjusted net income annualized $ 766,403 $ 671,964 $ 156,853

Total average assets $ 54,188,504 $ 53,833,909 $ 48,696,595

Return on average assets 1.40 % 1.11 % 0.32 %

Adjusted return on average 1.41 1.25 0.32 assets





Adjusted net income availableto common shareholders and adjusted diluted earnings pershare

Net income available to common $ 178,802 $ 142,118 $ 30,230 shareholders

Add: Restructuring charges 531 18,068 3,220

Add: Valuation adjustment to - 890 - Visa derivative

Add: Loss on early - 8,409 1,904 extinguishment of debt

Add/subtract: Investment 1,990 (2,337 ) (8,734 )securities losses (gains), net

Subtract/add: Fair value(increase) decrease of private - (63 ) 4,255 equity investments

Subtract: Tax effect of (638 ) (6,467 ) (167 )adjustments ^(1)

Adjusted net income available $ 180,685 $ 160,618 $ 30,708 to common shareholders

Weighted average common shares 149,780 148,725 148,401 outstanding, diluted

Diluted earnings per share $ 1.19 $ 0.96 $ 0.20

Adjusted diluted earnings per 1.21 1.08 0.21 share

Reconciliation of Non-GAAP Financial Measures, continued

(dollars in thousands)

1Q21

4Q20

1Q20

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

$

178,802

$

142,118

$

30,230

Add: Restructuring charges

531

18,068

3,220

Add: Valuation adjustment to Visa derivative

-

890

-

Add: Loss on early extinguishment of debt

-

8,409

1,904

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

1,990

(2,337

)

(8,734

)

Subtract/add: Fair value (increase) decrease of private equity investments

-

(63

)

4,255

Subtract: Tax effect of adjustments (1)

(638

)

(6,467

)

(167

)

Adjusted net income available to common shareholders

$

180,685

$

160,618

$

30,708

Adjusted net income available to common shareholders annualized

$

732,778

$

638,980

$

123,507

Add: Amortization of intangibles, annualized net of tax

7,207

7,782

7,868

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

$

739,985

$

646,762

$

131,375

Net income available to common shareholders annualized

$

725,141

$

565,382

$

121,584

Add: Amortization of intangibles, annualized net of tax

7,207

7,782

7,868

Net income available to common shareholders excluding amortization of intangibles annualized

$

732,348

$

573,164

$

129,452

Total average shareholders' equity less preferred stock

$

4,599,076

$

4,594,199

$

4,424,278

Subtract: Goodwill

(452,390

)

(452,390

)

(497,267

)

Subtract: Other intangible assets, net

(44,005

)

(46,511

)

(54,514

)

Total average tangible shareholders' equity less preferred stock

$

4,102,681

$

4,095,298

$

3,872,497

Return on average common equity

15.77

%

12.31

%

2.75

%

Adjusted return on average common equity

15.93

13.91

2.79

Return on average tangible common equity

17.85

14.00

3.34

Adjusted return on average tangible common equity

18.04

15.79

3.39

Reconciliation of Non-GAAP Financial Measures, continued



(dollars in thousands) 1Q21 4Q20 1Q20



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

Net income available to common $ 178,802 $ 142,118 $ 30,230 shareholders

Add: Restructuring charges 531 18,068 3,220

Add: Valuation adjustment to Visa - 890 - derivative

Add: Loss on early extinguishment - 8,409 1,904 of debt

Add/subtract: Investment 1,990 (2,337 ) (8,734 )securities losses (gains), net

Subtract/add: Fair value(increase) decrease of private - (63 ) 4,255 equity investments

Subtract: Tax effect of (638 ) (6,467 ) (167 )adjustments ^(1)

Adjusted net income available to $ 180,685 $ 160,618 $ 30,708 common shareholders



Adjusted net income available to $ 732,778 $ 638,980 $ 123,507 common shareholders annualized

Add: Amortization of intangibles, 7,207 7,782 7,868 annualized net of tax

Adjusted net income available tocommon shareholders excluding $ 739,985 $ 646,762 $ 131,375 amortization of intangiblesannualized



Net income available to common $ 725,141 $ 565,382 $ 121,584 shareholders annualized

Add: Amortization of intangibles, 7,207 7,782 7,868 annualized net of tax

Net income available to commonshareholders excluding $ 732,348 $ 573,164 $ 129,452 amortization of intangiblesannualized



Total average shareholders' $ 4,599,076 $ 4,594,199 $ 4,424,278 equity less preferred stock

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

Subtract: Other intangible (44,005 ) (46,511 ) (54,514 )assets, net

Total average tangibleshareholders' equity less $ 4,102,681 $ 4,095,298 $ 3,872,497 preferred stock

Return on average common equity 15.77 % 12.31 % 2.75 %

Adjusted return on average common 15.93 13.91 2.79 equity

Return on average tangible common 17.85 14.00 3.34 equity

Adjusted return on average 18.04 15.79 3.39 tangible common equity

Reconciliation of Non-GAAP Financial Measures, continued

(dollars in thousands)

March 31, 2021

December 31,2020

March 31, 2020

Tangible common equity ratio

Total assets

$

55,159,011

$

54,394,159

$

50,619,585

Subtract: Goodwill

(452,390

)

(452,390

)

(497,267

)

Subtract: Other intangible assets, net

(42,733

)

(45,112

)

(53,032

)

Tangible assets

$

54,663,888

$

53,896,657

$

50,069,286

Total shareholders' equity

$

5,161,717

$

5,161,334

$

5,065,205

Subtract: Goodwill

(452,390

)

(452,390

)

(497,267

)

Subtract: Other intangible assets, net

(42,733

)

(45,112

)

(53,032

)

Subtract: Preferred Stock, no par value

(537,145

)

(537,145

)

(537,145

)

Tangible common equity

$

4,129,449

$

4,126,687

$

3,977,761

Total shareholders' equity to total assets ratio

9.36

%

9.49

%

10.01

%

Tangible common equity ratio

7.55

7.66

7.94

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

Reconciliation of Non-GAAP Financial Measures, continued



(dollars in thousands) March 31, December 31, March 31, 2021 2020 2020



Tangible common equity ratio

Total assets $ 55,159,011 $ 54,394,159 $ 50,619,585

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

Subtract: Other intangible (42,733 ) (45,112 ) (53,032 )assets, net

Tangible assets $ 54,663,888 $ 53,896,657 $ 50,069,286



Total shareholders' equity $ 5,161,717 $ 5,161,334 $ 5,065,205

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

Subtract: Other intangible (42,733 ) (45,112 ) (53,032 )assets, net

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

Tangible common equity $ 4,129,449 $ 4,126,687 $ 3,977,761

Total shareholders' equity to 9.36 % 9.49 % 10.01 %total assets ratio

Tangible common equity ratio 7.55 7.66 7.94



^(1) An assumed marginal tax rate of 25.3% for 2021 and 25.9% for 2020 wasapplied.



Synovus

INCOME STATEMENT DATA

(Unaudited)

(Dollars in thousands, except per share data)

2021

2020

First Quarter

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

'21 vs '20

% Change

Interest income

$

409,817

433,479

435,550

451,569

483,897

(15

)%

Interest expense

35,960

47,547

58,560

75,003

110,637

(67

)

Net interest income

373,857

385,932

376,990

376,566

373,260

-

(Reversal of) provision for credit losses

(18,575

)

11,066

43,383

141,851

158,722

nm

Net interest income after provision for credit losses

392,432

374,866

333,607

234,715

214,538

83

Non-interest revenue:

Service charges on deposit accounts

20,033

19,063

17,813

15,567

20,689

(3

)

Fiduciary and asset management fees

17,954

17,242

15,885

14,950

15,174

18

Card fees

11,996

11,743

10,823

9,186

10,950

10

Brokerage revenue

12,974

11,794

10,604

9,984

12,398

5

Mortgage banking income

22,315

24,426

31,229

23,530

12,227

83

Capital markets income

7,505

4,352

5,690

6,050

11,243

(33

)

Income from bank-owned life insurance

8,843

9,725

7,778

7,756

6,038

46

Investment securities (losses)/gains, net

(1,990

)

2,337

(1,550

)

69,409

8,734

nm

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

-

63

260

8,707

(4,255

)

nm

Other non-interest revenue

11,326

14,016

15,879

8,345

10,659

6

Total non-interest revenue

110,956

114,761

114,411

173,484

103,857

7

Non-interest expense:

Salaries and other personnel expense

161,477

153,946

154,994

159,597

149,678

8

Net occupancy, equipment, and software expense

41,134

44,183

41,554

41,727

42,194

(3

)

Third-party processing and other services

20,032

20,799

21,827

22,666

22,700

(12

)

Professional fees

9,084

17,541

13,377

15,305

10,675

(15

)

FDIC insurance and other regulatory fees

5,579

6,288

6,793

6,851

5,278

6

Amortization of intangibles

2,379

2,640

2,640

2,640

2,640

(10

)

Goodwill impairment

-

-

44,877

-

-

nm

Restructuring charges

531

18,068

2,882

2,822

3,220

nm

Loss on early extinguishment of debt

-

8,409

154

-

1,904

nm

Earnout liability adjustments

-

-

-

4,908

-

nm

Other operating expenses

26,918

30,624

27,557

27,625

37,990

(29

)

Total non-interest expense

267,134

302,498

316,655

284,141

276,279

(3

)

Income before income taxes

236,254

187,129

131,363

124,058

42,116

461

Income tax expense

49,161

36,720

39,789

30,866

3,595

nm

Net income

187,093

150,409

91,574

93,192

38,521

386

Less: Preferred stock dividends

8,291

8,291

8,291

8,291

8,291

-

Net income available to common shareholders

$

178,802

142,118

83,283

84,901

30,230

491

%

Net income per common share, basic

$

1.20

0.96

0.57

0.58

0.21

487

%

Net income per common share, diluted

1.19

0.96

0.56

0.57

0.20

486

Cash dividends declared per common share

0.33

0.33

0.33

0.33

0.33

-

Return on average assets *

1.40

%

1.11

0.69

0.71

0.32

108

bps

Return on average common equity *

15.77

12.31

7.28

7.48

2.75

1,302

Weighted average common shares outstanding, basic

148,467

147,744

147,314

147,288

147,311

1

%

Weighted average common shares outstanding, diluted

149,780

148,725

147,976

147,733

148,401

1

nm - not meaningful

bps - basis points

* - ratios are annualized

Synovus



INCOME STATEMENT DATA

(Unaudited)



(Dollars in thousands, 2021 2020 First except per Quarter share data)



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



Interest $ 409,817 433,479 435,550 451,569 483,897 (15 )% income

Interest 35,960 47,547 58,560 75,003 110,637 (67 ) expense



Net interest 373,857 385,932 376,990 376,566 373,260 - income

(Reversal of) provision for (18,575 ) 11,066 43,383 141,851 158,722 nm credit losses



Net interest income after 392,432 374,866 333,607 234,715 214,538 83 provision for credit losses



Non-interest revenue:

Service charges on 20,033 19,063 17,813 15,567 20,689 (3 ) deposit accounts

Fiduciary and asset 17,954 17,242 15,885 14,950 15,174 18 management fees

Card fees 11,996 11,743 10,823 9,186 10,950 10

Brokerage 12,974 11,794 10,604 9,984 12,398 5 revenue

Mortgage 22,315 24,426 31,229 23,530 12,227 83 banking income

Capital 7,505 4,352 5,690 6,050 11,243 (33 ) markets income

Income from bank-owned 8,843 9,725 7,778 7,756 6,038 46 life insurance

Investment securities (1,990 ) 2,337 (1,550 ) 69,409 8,734 nm (losses)/ gains, net

Gain on sale and fair value increase/ - 63 260 8,707 (4,255 ) nm (decrease) on private equity investments

Other non-interest 11,326 14,016 15,879 8,345 10,659 6 revenue



Total non-interest 110,956 114,761 114,411 173,484 103,857 7 revenue



Non-interest expense:

Salaries and other 161,477 153,946 154,994 159,597 149,678 8 personnel expense

Net occupancy, equipment, and 41,134 44,183 41,554 41,727 42,194 (3 ) software expense

Third-party processing and 20,032 20,799 21,827 22,666 22,700 (12 ) other services

Professional 9,084 17,541 13,377 15,305 10,675 (15 ) fees

FDIC insurance and other 5,579 6,288 6,793 6,851 5,278 6 regulatory fees

Amortization 2,379 2,640 2,640 2,640 2,640 (10 ) of intangibles

Goodwill - - 44,877 - - nm impairment

Restructuring 531 18,068 2,882 2,822 3,220 nm charges

Loss on early extinguishment - 8,409 154 - 1,904 nm of debt

Earnout liability - - - 4,908 - nm adjustments

Other operating 26,918 30,624 27,557 27,625 37,990 (29 ) expenses



Total non-interest 267,134 302,498 316,655 284,141 276,279 (3 ) expense



Income before 236,254 187,129 131,363 124,058 42,116 461 income taxes

Income tax 49,161 36,720 39,789 30,866 3,595 nm expense



Net income 187,093 150,409 91,574 93,192 38,521 386



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



Net income available to $ 178,802 142,118 83,283 84,901 30,230 491 % common shareholders



Net income per common share, $ 1.20 0.96 0.57 0.58 0.21 487 % basic



Net income per common share, 1.19 0.96 0.56 0.57 0.20 486 diluted



Cash dividends declared per 0.33 0.33 0.33 0.33 0.33 - common share



Return on average assets 1.40 % 1.11 0.69 0.71 0.32 108 bps *

Return on average common 15.77 12.31 7.28 7.48 2.75 1,302 equity *



Weighted average common shares 148,467 147,744 147,314 147,288 147,311 1 % outstanding, basic

Weighted average common shares 149,780 148,725 147,976 147,733 148,401 1 outstanding, diluted



nm - not meaningful

bps - basis points

* - ratios are annualized

Synovus

BALANCE SHEET DATA

March 31, 2021

December 31, 2020

March 31, 2020

(Unaudited)

(In thousands, except share data)

ASSETS

Cash and due from banks

$

493,645

$

531,625

$

652,451

Interest-bearing funds with Federal Reserve Bank

2,722,100

3,586,565

1,020,775

Interest earning deposits with banks

23,969

20,944

20,717

Federal funds sold and securities purchased under resale agreements

88,552

113,783

129,891

Cash and cash equivalents

3,328,266

4,252,917

1,823,834

Investment securities available for sale, at fair value

8,825,757

7,962,438

6,937,240

Loans held for sale ($242,010, $216,647, and $119,841 measured at fair value, respectively)

993,887

760,123

119,841

Loans, net of deferred fees and costs

38,805,101

38,252,984

38,258,024

Allowance for loan losses

(563,214

)

(605,736

)

(493,452

)

Loans, net

38,241,887

37,647,248

37,764,572

Cash surrender value of bank-owned life insurance

1,054,475

1,049,373

1,031,544

Premises, equipment and software, net

454,911

463,959

482,462

Goodwill

452,390

452,390

497,267

Other intangible assets, net

42,733

45,112

53,032

Other assets

1,764,705

1,760,599

1,909,793

Total assets

$

55,159,011

$

54,394,159

$

50,619,585

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Deposits:

Non-interest-bearing deposits

$

14,660,287

$

13,477,854

$

9,659,451

Interest-bearing deposits

32,708,664

33,213,717

30,167,134

Total deposits

47,368,951

46,691,571

39,826,585

Federal funds purchased and securities sold under repurchase agreements

293,659

227,922

312,776

Other short-term borrowings

-

7,717

1,175,000

Long-term debt

1,202,825

1,202,494

3,152,339

Other liabilities

1,131,859

1,103,121

1,087,680

Total liabilities

49,997,294

49,232,825

45,554,380

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 168,978,380, 168,132,522, and 167,359,689; outstanding 148,888,513, 148,039,495, and 147,266,662

168,978

168,133

167,360

Additional paid-in capital

3,864,281

3,851,208

3,821,357

Treasury stock, at cost - 20,089,867, 20,093,027, and 20,093,027 shares

(731,690

)

(731,806

)

(731,806

)

Accumulated other comprehensive income, net

15,278

158,635

256,911

Retained earnings

1,307,725

1,178,019

1,014,238

Total shareholders' equity

5,161,717

5,161,334

5,065,205

Total liabilities and shareholders' equity

$

55,159,011

$

54,394,159

$

50,619,585

Synovus





BALANCE SHEET DATA March 31, 2021 December 31, March 31, 2020 2020



(Unaudited)



(In thousands, except share data)



ASSETS

Cash and due from banks $ 493,645 $ 531,625 $ 652,451

Interest-bearing funds 2,722,100 3,586,565 1,020,775 with Federal Reserve Bank

Interest earning deposits 23,969 20,944 20,717 with banks

Federal funds sold and securities purchased under 88,552 113,783 129,891 resale agreements

Cash and cash equivalents 3,328,266 4,252,917 1,823,834



Investment securities available for sale, at 8,825,757 7,962,438 6,937,240 fair value

Loans held for sale ($242,010, $216,647, and 993,887 760,123 119,841 $119,841 measured at fair value, respectively)



Loans, net of deferred 38,805,101 38,252,984 38,258,024 fees and costs

Allowance for loan losses (563,214 ) (605,736 ) (493,452 )

Loans, net 38,241,887 37,647,248 37,764,572



Cash surrender value of 1,054,475 1,049,373 1,031,544 bank-owned life insurance

Premises, equipment and 454,911 463,959 482,462 software, net

Goodwill 452,390 452,390 497,267

Other intangible assets, 42,733 45,112 53,032 net

Other assets 1,764,705 1,760,599 1,909,793

Total assets $ 55,159,011 $ 54,394,159 $ 50,619,585



LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Deposits:

Non-interest-bearing $ 14,660,287 $ 13,477,854 $ 9,659,451 deposits

Interest-bearing deposits 32,708,664 33,213,717 30,167,134



Total deposits 47,368,951 46,691,571 39,826,585



Federal funds purchased and securities sold under 293,659 227,922 312,776 repurchase agreements

Other short-term - 7,717 1,175,000 borrowings

Long-term debt 1,202,825 1,202,494 3,152,339

Other liabilities 1,131,859 1,103,121 1,087,680

Total liabilities 49,997,294 49,232,825 45,554,380



Shareholders' equity:

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

Common stock - $1.00 par value. Authorized 342,857,143 shares; issued 168,978,380, 168,132,522, 168,978 168,133 167,360 and 167,359,689; outstanding 148,888,513, 148,039,495, and 147,266,662

Additional paid-in capital 3,864,281 3,851,208 3,821,357

Treasury stock, at cost - 20,089,867, 20,093,027, (731,690 ) (731,806 ) (731,806 ) and 20,093,027 shares

Accumulated other 15,278 158,635 256,911 comprehensive income, net

Retained earnings 1,307,725 1,178,019 1,014,238

Total shareholders' equity 5,161,717 5,161,334 5,065,205

Total liabilities and $ 55,159,011 $ 54,394,159 $ 50,619,585 shareholders' equity

Synovus

AVERAGE BALANCES AND YIELDS/RATES (1)

(Unaudited)

2021

2020

(Dollars in thousands)

First

Fourth

Third

Second

First

Quarter

Quarter

Quarter

Quarter

Quarter

Interest Earning Assets

Investment securities (2) (4)

$

8,437,563

7,493,822

7,227,400

6,618,533

6,680,047

Yield

1.40

%

2.07

2.39

2.72

3.09

Trading account assets (5)

$

3,063

8,496

5,391

6,173

6,306

Yield

2.81

%

1.03

1.69

2.19

2.70

Commercial loans (3) (4)

$

29,844,491

30,363,102

30,730,135

30,236,919

27,607,343

Yield

3.95

%

3.96

3.80

3.95

4.57

Consumer loans (3)

$

8,367,776

8,521,449

9,032,437

9,899,172

9,985,702

Yield

3.98

%

4.00

4.08

4.34

4.60

Allowance for loan losses

$

(599,872

)

(595,547

)

(591,098

)

(498,545

)

(368,033

)

Loans, net (3)

$

37,612,395

38,289,004

39,171,474

39,637,546

37,225,012

Yield

4.02

%

4.03

3.92

4.08

4.62

Mortgage loans held for sale

$

246,962

309,278

244,952

221,157

86,415

Yield

2.68

%

2.74

2.92

3.09

3.67

Other loans held for sale

$

660,753

544,301

493,940

19,246

-

Yield

2.91

%

2.81

3.61

4.19

-

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

$

2,838,021

2,716,645

1,265,880

1,709,086

652,130

Yield

0.10

%

0.10

0.11

0.11

1.02

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

$

157,657

162,537

200,923

247,801

284,082

Yield

1.69

%

2.64

2.73

3.60

3.38

Total interest earning assets

$

49,956,414

49,524,083

48,609,960

48,459,542

44,933,992

Yield

3.32

%

3.49

3.58

3.75

4.33

Interest-Bearing Liabilities

Interest-bearing demand deposits

$

8,570,753

8,531,415

7,789,095

7,260,940

6,445,986

Rate

0.14

%

0.16

0.19

0.21

0.51

Money Market accounts

$

15,348,916

14,411,860

13,272,972

12,238,479

11,548,014

Rate

0.23

%

0.26

0.36

0.46

1.00

Savings deposits

$

1,219,288

1,147,667

1,114,956

1,036,024

926,822

Rate

0.02

%

0.01

0.02

0.02

0.05

Time deposits under $100,000

$

1,161,306

1,239,592

1,379,923

1,621,943

1,761,741

Rate

0.56

%

0.74

1.03

1.43

1.64

Time deposits over $100,000

$

2,993,996

3,302,959

3,863,821

4,772,555

5,051,705

Rate

0.74

%

1.03

1.44

1.80

2.04

Other brokered deposits

$

1,950,582

1,978,393

1,912,114

1,998,571

1,376,669

Rate

0.20

%

0.23

0.23

0.25

1.42

Brokered time deposits

$

1,418,751

1,795,982

2,232,940

2,244,429

2,166,496

Rate

1.50

%

1.60

1.59

1.86

2.11

Total interest-bearing deposits

$

32,663,592

32,407,868

31,565,821

31,172,941

29,277,433

Rate

0.31

%

0.39

0.54

0.73

1.18

Federal funds purchased and securities sold under repurchase agreements

$

209,448

174,316

180,342

250,232

167,324

Rate

0.07

%

0.07

0.09

0.12

0.30

Other short-term borrowings

$

-

-

46,739

550,000

1,384,362

Rate

-

%

-

1.12

1.23

1.66

Long-term debt

$

1,202,613

1,552,791

2,234,665

2,834,188

2,678,651

Rate

3.63

%

3.96

2.71

2.36

2.78

Total interest-bearing liabilities

$

34,075,653

34,134,975

34,027,567

34,807,361

33,507,770

Rate

0.42

%

0.55

0.68

0.86

1.30

Non-interest-bearing demand deposits

$

13,791,286

13,566,112

12,773,676

11,923,534

9,409,774

Cost of funds

0.30

%

0.40

0.50

0.65

1.04

Effective cost of funds(6)

0.28

%

0.37

0.48

0.62

0.96

Net interest margin

3.04

%

3.12

3.10

3.13

3.37

Taxable equivalent adjustment (4)

$

774

821

956

861

786

(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.

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

Synovus

AVERAGE BALANCES AND YIELDS/RATES^ (1)

(Unaudited) 2021 2020 (Dollars in thousands)



First Fourth Third Second First

Quarter Quarter Quarter Quarter Quarter

Interest Earning Assets

Investment $ 8,437,563 7,493,822 7,227,400 6,618,533 6,680,047 securities^ (2) (4)

Yield 1.40 % 2.07 2.39 2.72 3.09

Trading account $ 3,063 8,496 5,391 6,173 6,306 assets ^(5)

Yield 2.81 % 1.03 1.69 2.19 2.70

Commercial loans ^ $ 29,844,491 30,363,102 30,730,135 30,236,919 27,607,343 (3) (4)

Yield 3.95 % 3.96 3.80 3.95 4.57

Consumer loans ^(3) $ 8,367,776 8,521,449 9,032,437 9,899,172 9,985,702

Yield 3.98 % 4.00 4.08 4.34 4.60

Allowance for loan $ (599,872 ) (595,547 ) (591,098 ) (498,545 ) (368,033 ) losses

Loans, net ^(3) $ 37,612,395 38,289,004 39,171,474 39,637,546 37,225,012

Yield 4.02 % 4.03 3.92 4.08 4.62

Mortgage loans held $ 246,962 309,278 244,952 221,157 86,415 for sale

Yield 2.68 % 2.74 2.92 3.09 3.67

Other loans held for $ 660,753 544,301 493,940 19,246 - sale

Yield 2.91 % 2.81 3.61 4.19 -

Federal funds sold, due from Federal Reserve Bank, and $ 2,838,021 2,716,645 1,265,880 1,709,086 652,130 other short-term investments

Yield 0.10 % 0.10 0.11 0.11 1.02

Federal Home Loan Bank and Federal $ 157,657 162,537 200,923 247,801 284,082 Reserve Bank Stock ^ (5)

Yield 1.69 % 2.64 2.73 3.60 3.38

Total interest $ 49,956,414 49,524,083 48,609,960 48,459,542 44,933,992 earning assets

Yield 3.32 % 3.49 3.58 3.75 4.33

Interest-Bearing Liabilities

Interest-bearing $ 8,570,753 8,531,415 7,789,095 7,260,940 6,445,986 demand deposits

Rate 0.14 % 0.16 0.19 0.21 0.51

Money Market $ 15,348,916 14,411,860 13,272,972 12,238,479 11,548,014 accounts

Rate 0.23 % 0.26 0.36 0.46 1.00

Savings deposits $ 1,219,288 1,147,667 1,114,956 1,036,024 926,822

Rate 0.02 % 0.01 0.02 0.02 0.05

Time deposits under $ 1,161,306 1,239,592 1,379,923 1,621,943 1,761,741 $100,000

Rate 0.56 % 0.74 1.03 1.43 1.64

Time deposits over $ 2,993,996 3,302,959 3,863,821 4,772,555 5,051,705 $100,000

Rate 0.74 % 1.03 1.44 1.80 2.04

Other brokered $ 1,950,582 1,978,393 1,912,114 1,998,571 1,376,669 deposits

Rate 0.20 % 0.23 0.23 0.25 1.42

Brokered time $ 1,418,751 1,795,982 2,232,940 2,244,429 2,166,496 deposits

Rate 1.50 % 1.60 1.59 1.86 2.11

Total interest-bearing $ 32,663,592 32,407,868 31,565,821 31,172,941 29,277,433 deposits

Rate 0.31 % 0.39 0.54 0.73 1.18

Federal funds purchased and securities sold $ 209,448 174,316 180,342 250,232 167,324 under repurchase agreements

Rate 0.07 % 0.07 0.09 0.12 0.30

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

Rate - % - 1.12 1.23 1.66

Long-term debt $ 1,202,613 1,552,791 2,234,665 2,834,188 2,678,651

Rate 3.63 % 3.96 2.71 2.36 2.78

Total interest-bearing $ 34,075,653 34,134,975 34,027,567 34,807,361 33,507,770 liabilities

Rate 0.42 % 0.55 0.68 0.86 1.30

Non-interest-bearing $ 13,791,286 13,566,112 12,773,676 11,923,534 9,409,774 demand deposits

Cost of funds 0.30 % 0.40 0.50 0.65 1.04

Effective cost of 0.28 % 0.37 0.48 0.62 0.96 funds^(6)

Net interest margin 3.04 % 3.12 3.10 3.13 3.37

Taxable equivalent $ 774 821 956 861 786 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.

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

Synovus

LOANS OUTSTANDING BY TYPE

(Unaudited)

Total Loans

Total Loans

Linked Quarter

Total Loans

Year/Year

(Dollars in thousands)

Loan Type

March 31, 2021

December 31, 2020

% Change

March 31, 2020

% Change

Commercial, Financial, and Agricultural

$

12,662,329

$

12,410,152

2

%

$

10,902,455

16

%

Owner-Occupied

7,031,505

7,110,016

(1

)

6,907,893

2

Total Commercial & Industrial

19,693,834

19,520,168

1

17,810,348

11

Multi-Family

2,220,939

2,190,534

1

2,103,566

6

Hotels

1,462,370

1,442,242

1

1,311,614

11

Office Buildings

2,280,053

2,207,744

3

2,211,525

3

Shopping Centers

1,662,158

1,644,519

1

1,778,627

(7

)

Warehouses

692,267

700,050

(1

)

759,858

(9

)

Other Investment Property

1,017,938

918,290

11

859,726

18

Total Investment Properties

9,335,725

9,103,379

3

9,024,916

3

1-4 Family Construction

189,626

182,981

4

254,495

(25

)

1-4 Family Investment Mortgage

449,328

445,714

1

482,442

(7

)

Total 1-4 Family Properties

638,954

628,695

2

736,937

(13

)

Commercial Development

142,380

130,678

9

107,219

33

Residential Development

196,653

245,170

(20

)

302,516

(35

)

Land Acquisition

220,216

217,785

1

303,770

(28

)

Land and Development

559,249

593,633

(6

)

713,505

(22

)

Total Commercial Real Estate

10,533,928

10,325,707

2

10,475,358

1

Consumer Mortgages

5,299,175

5,513,491

(4

)

5,613,997

(6

)

Home Equity Lines

1,432,367

1,537,726

(7

)

1,793,486

(20

)

Credit Cards

267,371

281,018

(5

)

261,581

2

Other Consumer Loans

1,578,426

1,074,874

47

2,303,254

(31

)

Total Consumer

8,577,339

8,407,109

2

9,972,318

(14

)

Total

$

38,805,101

$

38,252,984

1

%

$

38,258,024

1

%

NON-PERFORMING LOANS COMPOSITION

(Unaudited)

Total Non-performing Loans

Total Non-performing Loans

Linked Quarter

Total Non-performing Loans

Year/Year

(Dollars in thousands)

Loan Type

March 31, 2021

December 31, 2020

% Change

March 31, 2020

% Change

Commercial, Financial, and Agricultural

$

76,460

$

77,386

(1

)%

$

99,287

(23

)%

Owner-Occupied

17,192

20,019

(14

)

17,357

(1

)

Total Commercial & Industrial

93,652

97,405

(4

)

116,644

(20

)

Multi-Family

2,698

168

nm

356

658

Office Buildings

1,645

1,134

45

836

97

Shopping Centers

20,138

21,082

(4

)

712

nm

Warehouses

221

217

2

-

nm

Other Investment Property

887

2,030

(56

)

308

188

Total Investment Properties

25,589

24,631

4

2,212

nm

1-4 Family Construction

1,291

1,236

4

278

364

1-4 Family Investment Mortgage

2,760

2,383

16

2,047

35

Total 1-4 Family Properties

4,051

3,619

12

2,325

74

Commercial Development

567

582

(3

)

596

(5

)

Residential Development

452

533

(15

)

561

(19

)

Land Acquisition

782

1,048

(25

)

1,043

(25

)

Land and Development

1,801

2,163

(17

)

2,200

(18

)

Total Commercial Real Estate

31,441

30,413

3

6,737

367

Consumer Mortgages

11,201

8,740

28

13,571

(17

)

Home Equity Lines

12,191

12,145

-

12,475

(2

)

Other Consumer Loans

6,684

2,376

181

6,860

(3

)

Total Consumer

30,076

23,261

29

32,906

(9

)

Total

$

155,169

$

151,079

3

%

$

156,287

(1

)%

Synovus

LOANSOUTSTANDING BY TYPE

(Unaudited)

(Dollars in Total Loans Total Loans Linked Total Loans Year/thousands) Quarter Year



Loan Type March 31, 2021 December 31, % March 31, 2020 % 2020 Change Change

Commercial,Financial, and $ 12,662,329 $ 12,410,152 2 % $ 10,902,455 16 %Agricultural

Owner-Occupied 7,031,505 7,110,016 (1 ) 6,907,893 2

TotalCommercial & 19,693,834 19,520,168 1 17,810,348 11 Industrial

Multi-Family 2,220,939 2,190,534 1 2,103,566 6

Hotels 1,462,370 1,442,242 1 1,311,614 11

Office 2,280,053 2,207,744 3 2,211,525 3 Buildings

Shopping 1,662,158 1,644,519 1 1,778,627 (7 )Centers

Warehouses 692,267 700,050 (1 ) 759,858 (9 )

OtherInvestment 1,017,938 918,290 11 859,726 18 Property

TotalInvestment 9,335,725 9,103,379 3 9,024,916 3 Properties

1-4 Family 189,626 182,981 4 254,495 (25 )Construction

1-4 FamilyInvestment 449,328 445,714 1 482,442 (7 )Mortgage

Total 1-4Family 638,954 628,695 2 736,937 (13 )Properties

Commercial 142,380 130,678 9 107,219 33 Development

Residential 196,653 245,170 (20 ) 302,516 (35 )Development

Land 220,216 217,785 1 303,770 (28 )Acquisition

Land and 559,249 593,633 (6 ) 713,505 (22 )Development

TotalCommercial 10,533,928 10,325,707 2 10,475,358 1 Real Estate

Consumer 5,299,175 5,513,491 (4 ) 5,613,997 (6 )Mortgages

Home Equity 1,432,367 1,537,726 (7 ) 1,793,486 (20 )Lines

Credit Cards 267,371 281,018 (5 ) 261,581 2

Other Consumer 1,578,426 1,074,874 47 2,303,254 (31 )Loans

Total Consumer 8,577,339 8,407,109 2 9,972,318 (14 )

Total $ 38,805,101 $ 38,252,984 1 % $ 38,258,024 1 %



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 March 31, 2021 December 31, % March 31, 2020 % 2020 Change Change

Commercial,Financial, and $ 76,460 $ 77,386 (1 )% $ 99,287 (23 )%Agricultural

Owner-Occupied 17,192 20,019 (14 ) 17,357 (1 )

TotalCommercial & 93,652 97,405 (4 ) 116,644 (20 )Industrial

Multi-Family 2,698 168 nm 356 658

Office 1,645 1,134 45 836 97 Buildings

Shopping 20,138 21,082 (4 ) 712 nmCenters

Warehouses 221 217 2 - nm

OtherInvestment 887 2,030 (56 ) 308 188 Property

TotalInvestment 25,589 24,631 4 2,212 nm Properties

1-4 Family 1,291 1,236 4 278 364 Construction

1-4 FamilyInvestment 2,760 2,383 16 2,047 35 Mortgage

Total 1-4Family 4,051 3,619 12 2,325 74 Properties

Commercial 567 582 (3 ) 596 (5 )Development

Residential 452 533 (15 ) 561 (19 )Development

Land 782 1,048 (25 ) 1,043 (25 )Acquisition

Land and 1,801 2,163 (17 ) 2,200 (18 )Development

TotalCommercial 31,441 30,413 3 6,737 367 Real Estate

Consumer 11,201 8,740 28 13,571 (17 )Mortgages

Home Equity 12,191 12,145 - 12,475 (2 )Lines

Other Consumer 6,684 2,376 181 6,860 (3 )Loans

Total Consumer 30,076 23,261 29 32,906 (9 )

Total $ 155,169 $ 151,079 3 % $ 156,287 (1 )%

Synovus

CREDIT QUALITY DATA

(Unaudited)

(Dollars in thousands)

2021

2020

First Quarter

First

Fourth

Third

Second

First

'21 vs '20

Quarter

Quarter

Quarter

Quarter

Quarter

% Change

Non-performing Loans (NPLs)

$

155,169

151,079

168,837

147,437

156,287

(1

)%

Impaired Loans Held for Sale

23,590

23,590

-

-

-

nm

Other Real Estate and Other Assets

16,849

17,394

23,280

30,242

33,679

(50

)

Non-performing Assets (NPAs)

195,608

192,063

192,117

177,679

189,966

3

Allowance for Loan Losses (ALL)

563,214

605,736

603,800

588,648

493,452

14

Reserve for Unfunded Commitments

51,528

47,785

60,794

61,029

38,420

34

Allowance for Credit Losses (ACL)

614,742

653,521

664,594

649,677

531,872

16

Net Charge-Offs - Quarter

20,204

22,139

28,466

24,046

20,061

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

0.21

%

0.23

0.29

0.24

0.21

NPLs / Loans

0.40

0.39

0.43

0.37

0.41

NPAs / Loans, ORE and specific other assets

0.50

0.50

0.49

0.44

0.50

ACL/Loans

1.58

1.71

1.68

1.63

1.39

ALL/Loans

1.45

1.58

1.53

1.47

1.29

ACL/NPLs

396.18

432.57

393.63

440.65

340.32

ALL/NPLs

362.97

400.94

357.62

399.25

315.74

Past Due Loans over 90 days and Still Accruing

$

3,804

4,117

7,512

8,391

6,398

(41

)

As a Percentage of Loans Outstanding

0.01

%

0.01

0.02

0.02

0.02

Total Past Due Loans and Still Accruing

$

45,693

47,349

57,316

46,390

83,235

(45

)

As a Percentage of Loans Outstanding

0.12

%

0.12

0.14

0.12

0.22

Accruing Troubled Debt Restructurings (TDRs)

$

129,776

134,972

163,511

166,461

160,128

(19

)

(1) Ratio is annualized.

SELECTED CAPITAL INFORMATION (1)

(Unaudited)

(Dollars in thousands)

March 31, 2021

December 31, 2020

March 31, 2020

Tier 1 Capital

$

4,721,859

4,572,010

4,281,560

Total Risk-Based Capital

5,733,955

5,604,230

5,289,039

Common Equity Tier 1 Capital Ratio

9.74

%

9.66

8.70

Tier 1 Capital Ratio

10.99

10.95

9.95

Total Risk-Based Capital Ratio

13.34

13.42

12.29

Tier 1 Leverage Ratio

8.80

8.50

8.92

Common Equity as a Percentage of Total Assets (2)

8.38

8.51

8.95

Tangible Common Equity Ratio (3) (5)

7.55

7.66

7.94

Book Value Per Common Share (4)

$

31.06

31.24

30.75

Tangible Book Value Per Common Share (3)

27.74

27.88

27.01

(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/20210420005452/en/

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

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