Business Wire | Jul 20, 2021 06:32AM EDT

Synovus Announces Earnings for the Second Quarter 2021

Jul. 20, 2021

COLUMBUS, Ga.--(BUSINESS WIRE)--Jul. 20, 2021--Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended June 30, 2021.

Second Quarter 2021 Highlights

* Net income available to common shareholders of $177.9 million or $1.19 per diluted share, unchanged sequentially and up $0.62 compared to prior year. Adjusted diluted EPS of $1.20, down $0.01 sequentially and up $0.97 compared to prior year. * Period-end loans decreased $569.1 million or 1% sequentially. Paycheck Protection Program (PPP) loans declined $763.4 million and third-party consumer loan balances increased $272.5 million sequentially. * Core transaction deposits (non-interest bearing, NOW/savings, and money market deposits excluding public and brokered funds) increased $702.4 million or 2% sequentially. * Total deposit costs of 0.16% down 6 bps sequentially due to ongoing repricing and product remixing. * Net interest income of $381.9 million increased $8.0 million sequentially as asset growth, reduced deposit costs, and a higher day count more than offset the reduction in PPP fee income. Net interest margin of 3.02%, down 2 bps sequentially. * Non-interest revenue decreased $3.9 million sequentially as broad-based growth partially offset the normalization of net mortgage revenues. Adjusted non-interest revenue decreased $6.2 million. * Non-interest expense increased $3.4 million sequentially and decreased $13.6 million compared to prior year. Adjusted non-interest expense increased $2.4 million sequentially as the benefits from various efficiency initiatives were offset by higher commissions, incentives, and expenses primarily related to additional PPP forgiveness and expenses associated with higher third-party consumer loan balances. * Reversal of provision for credit losses of $24.6 million, primarily from a more favorable economic outlook. Allowance for credit losses coverage ratio (to loans) of 1.47%, or 1.54% excluding PPP loans. * Credit quality metrics remain relatively stable, near historical lows. The non-performing asset ratio fell 4 bps to 0.46% sequentially; criticized and classified loans declined 14% compared to prior quarter. * Preliminary CET1 ratio increased 1 bp sequentially to 9.75%, with strong core earnings helping offset the decline from $92.5 million in share repurchases at an average price of $47.51, reducing average diluted outstanding shares from the prior quarter by 1.3%.

Second Quarter Summary

Reported Adjusted

(dollars in 2Q21 1Q21 2Q20 2Q21 1Q21 2Q20thousands)

Net incomeavailable to $ 177,909 $ 178,802 $ 84,901 $ 178,969 $ 180,685 $ 34,015 commonshareholders

Dilutedearnings per 1.19 1.19 0.57 1.20 1.21 0.23 share

Total loans 38,236,018 38,805,101 39,914,297 N/A N/A N/A

Total 47,171,962 47,368,951 44,194,580 N/A N/A N/A deposits

Total FTE 489,738 485,587 550,911 488,612 486,785 470,659 revenue

Return on 1.36 % 1.40 % 0.71 % 1.37 % 1.41 % 0.32 %avg assets

Return onavg common 15.40 15.77 7.48 15.50 15.93 3.00 equity

Return onavg tangible 17.41 17.85 8.69 17.52 18.04 3.60 commonequity

Net interest 3.02 3.04 3.13 N/A N/A N/A margin

Efficiency 55.24 55.01 51.58 54.41 54.12 57.71 ratio

NCO ratio 0.28 0.21 0.24 N/A N/A N/A

NPA ratio 0.46 0.50 0.44 N/A N/A N/A

"Our Synovus team delivered solid financial performance in the second quarter while continuing to position the company for long-term success," said Kevin Blair, Synovus President and CEO. "Revenue growth in the quarter was largely driven by an $8 million increase in net interest income resulting from earning asset growth. The credit outlook continued to improve, with a 14% reduction in criticized and classified loans and another quarter of reserve release. And we remained focused on growth drivers in the quarter while maintaining discipline around expenses, which declined 5% from the second quarter of 2020.

"We are delivering on Synovus Forward, with $75 million in pre-tax benefits to date, and we continue to strengthen our competitive position by investing in specialized talent, technology and solutions, and by taking advantage of our economically vibrant Southeast footprint," Blair said. "We expect our efforts to produce sustained profitable growth, positive operating leverage, and higher returns as we progress toward becoming a top quartile performing bank."

Balance Sheet

Loans^*



Linked Linked Year/(dollars in 2Q21 1Q21 Quarter Quarter 2Q20 Year/Year Yearmillions) Change % Change % Change Change

Commercial & $ 19,150.1 $ 19,693.8 $ (543.7 ) (3 )% $ 20,031.6 $ (881.5 ) (4 )%industrial

Commercial real 10,361.1 10,533.9 (172.9 ) (2 ) 10,614.2 (253.1 ) (2 )estate

Consumer 8,724.8 8,577.3 147.5 2 9,268.5 (543.6 ) (6 )

Total loans $ 38,236.0 $ 38,805.1 $ (569.1 ) (1 )% $ 39,914.3 $ (1,678.2 ) (4 )%

^*Amounts may not total due to rounding

* Total loans ended the quarter at $38.24 billion, down $569.1 million or 1% sequentially. * Commercial and industrial (C&I) loans declined $543.7 million sequentially, led by a decline in PPP loan balances of $763.4 million. PPP forgiveness of $927 million partially offset by additional fundings of $149 million. C&I line utilization remains near historic lows at ~40%. * CRE loans declined $172.9 million as the recovery in commercial real estate continues. * Consumer loans increased $147.5 million sequentially, with growth of $273.5 million in third-party consumer lending offsetting declines in consumer mortgages and HELOCs of $98.4 million and $74.2 million, respectively.

Deposits^*



Linked Linked Year/(dollars in millions) 2Q21 1Q21 Quarter Quarter 2Q20 Year/Year Year Change % Change % Change Change

Non-interest-bearing $ 14,342.6 $ 13,742.1 $ 600.5 4 % $ 11,830.7 $ 2,511.9 21 %DDA

Interest-bearing DDA 5,839.8 5,841.7 (1.9 ) - 5,057.2 782.6 15

Money market 13,983.1 13,943.7 39.4 - 11,457.2 2,525.9 22

Savings 1,341.5 1,277.0 64.4 5 1,080.1 261.3 24

Public funds 5,804.9 6,154.9 (350.0 ) (6 ) 5,347.4 457.6 9

Time deposits 2,891.1 3,214.8 (323.6 ) (10 ) 5,131.7 (2,240.6 ) (44 )

Brokered deposits 2,969.0 3,194.7 (225.7 ) (7 ) 4,290.3 (1,321.3 ) (31 )

Total deposits $ 47,172.0 $ 47,369.0 $ (197.0 ) - % $ 44,194.6 $ 2,977.4 7 %

^*Amounts may not total due to rounding

* Total deposits ended the quarter at $47.17 billion, down $197.0 million sequentially. * Core transaction deposits increased $702.4 million or 2% sequentially. * Total deposit costs declined 6 bps sequentially to 0.16%.

Income Statement Summary^**



(in Linked Linked Year/thousands, 2Q21 1Q21 Quarter Quarter 2Q20 Year/Year Yearexcept per Change % Change %share data) Change Change

Net interest $ 381,860 $ 373,857 $ 8,003 2 % $ 376,566 $ 5,294 1 %income

Non-interest 107,087 110,956 (3,869 ) (3 ) 173,484 (66,397 ) (38 )revenue

Non-interest 270,531 267,134 3,397 1 284,141 (13,610 ) (5 )expense

(Reversalof)provision (24,598 ) (18,575 ) (6,023 ) (32 ) 141,851 (166,449 ) nm for creditlosses

Income $ 243,014 $ 236,254 $ 6,760 3 % $ 124,058 $ 118,956 96 %before taxes

Income tax 56,814 49,161 7,653 16 30,866 25,948 84 expense

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

Net incomeavailable to $ 177,909 $ 178,802 $ (893 ) - % $ 84,901 $ 93,008 110 %commonshareholders

Weightedaveragecommon 149,747 149,780 (33 ) - % 147,733 2,014 1 %sharesoutstanding,diluted

Dilutedearnings per $ 1.19 $ 1.19 $ - - $ 0.57 $ 0.62 109 share

Adjusteddiluted 1.20 1.21 (0.01 ) (1 ) 0.23 0.97 421 earnings pershare

^** Amounts may not total due to rounding

Core Performance

* Net interest income of $381.9 million increased $8.0 million sequentially as asset growth, reduced deposit costs, and a higher day count more than offset the reduction in PPP fee income. Net PPP fee accretion of $20.4 million, down $4.5 million sequentially. Net interest margin was 3.02%, down 2 bps sequentially. * Non-interest revenue decreased $3.9 million, or 3% sequentially. Adjusted non-interest revenue decreased $6.2 million, or 6% sequentially, and increased $12.7 million, or 14% compared to prior year. Broad-based growth helped partially offset normalization of net mortgage revenue, which declined $8.5 million sequentially. * Non-interest expense increased $3.4 million, or 1% sequentially. Adjusted non-interest expense increased $2.4 million, or 1% sequentially. The benefits from various efficiency initiatives were offset by higher commissions, incentives, and expenses primarily related to additional PPP forgiveness and expenses associated with higher third-party consumer loan balances. * Reversal of provision for credit losses of $24.6 million supported by a more positive economic outlook and 14% reduction in criticized and classified loans; allowance for credit losses coverage ratio (to loans) of 1.47%, or 1.54% excluding PPP loans. * Tax expense was $56.8 million, an increase of $7.7 million driven by higher taxable income and unfavorable change in discrete items. Year-to-date effective tax rate of 22.56% before discrete items.

Capital Ratios



2Q21 1Q21 2Q20

Common equity Tier 1 capital (CET1) ratio 9.75 % ^* 9.74 % 8.90 %

Tier 1 capital ratio 10.99 ^* 10.99 10.15

Total risk-based capital ratio 13.25 ^* 13.34 12.70

Tier 1 leverage ratio 8.72 ^* 8.80 8.38

Tangible common equity ratio 7.73 7.55 7.41

* Ratios are preliminary.

Capital

* Preliminary CET1 ratio improved 1 bp during the quarter to 9.75% as strong core performance helped offset the impact of $92.5 million in share repurchases at an average price of $47.51, reducing average diluted outstanding shares from the prior quarter by 1.3%. * Total risk-based capital ratio of 13.25% declined 9 bps from the prior quarter following a reduction in the ACL.

Second Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on July 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 285 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; 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), gain on sale and changes in the fair value of private equity investments, net, and fair value adjustment on non-qualified deferred compensation. Adjusted non-interest expense and the adjusted tangible efficiency ratio are measures utilized by management to measure the success of expense management initiatives focused on reducing recurring controllable operating costs. Adjusted net income available to common shareholders, adjusted 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) 2Q21 1Q21 2Q20

Adjusted non-interest revenue

Total non-interest revenue $ 107,087 $ 110,956 $ 173,484

Add/subtract: Investment securities - 1,990 (69,409 )losses (gains), net

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

Subtract: Fair value adjustment on (1,126 ) (792 ) (2,136 )non-qualified deferred compensation

Adjusted non-interest revenue $ 105,961 $ 112,154 $ 93,232



Adjusted non-interest expense

Total non-interest expense $ 270,531 $ 267,134 $ 284,141

Subtract: Earnout liability adjustment (750 ) - (4,908 )

Subtract: Restructuring charges (415 ) (531 ) (2,822 )

Subtract: Fair value adjustment on (1,126 ) (792 ) (2,136 )non-qualified deferred compensation

Adjusted non-interest expense $ 268,240 $ 265,811 $ 274,275



Reconciliation of Non-GAAP Financial Measures, continued



(dollars in thousands) 2Q21 1Q21 2Q20

Total adjusted revenue and adjusted tangible efficiency ratio

Adjusted non-interest expense $ 268,240 $ 265,811 $ 274,275

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

Adjusted tangible non-interest expense $ 265,861 $ 263,432 $ 271,635



Net interest income $ 381,860 $ 373,857 $ 376,566

Add: Tax equivalent adjustment 791 774 861

Add: Total non-interest revenue 107,087 110,956 173,484

Total FTE revenue 489,738 485,587 550,911

Add/subtract: Investment securities - 1,990 (69,409 )losses (gains), net

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

Subtract: Fair value adjustment on (1,126 ) (792 ) (2,136 )non-qualified deferred compensation

Total adjusted revenue $ 488,612 $ 486,785 $ 470,659

Efficiency ratio-FTE 55.24 % 55.01 % 51.58 %

Adjusted tangible efficiency ratio 54.41 54.12 57.71

Adjusted return on average assets

Net income

$

186,200

$

187,093

$

93,192

Add: Earnout liability adjustment

750

-

4,908

Add: Restructuring charges

415

531

2,822

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

-

1,990

(69,409

)

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

-

-

(8,707

)

Subtract/add: Tax effect of adjustments (1)

(105

)

(638

)

19,500

Adjusted net income

$

187,260

$

188,976

$

42,306

Net income annualized

$

746,846

$

758,766

$

374,816

Adjusted net income annualized

$

751,098

$

766,403

$

170,154

Total average assets

$

55,017,771

$

54,188,504

$

52,853,685

Return on average assets

1.36

%

1.40

%

0.71

%

Adjusted return on average assets

1.37

1.41

0.32

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

Net income available to common shareholders

$

177,909

$

178,802

$

84,901

Add: Earnout liability adjustment

750

-

4,908

Add: Restructuring charges

415

531

2,822

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

-

1,990

(69,409

)

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

-

-

(8,707

)

Subtract/add: Tax effect of adjustments (1)

(105

)

(638

)

19,500

Adjusted net income available to common shareholders

$

178,969

$

180,685

$

34,015

Weighted average common shares outstanding, diluted

149,747

149,780

147,733

Diluted earnings per share

$

1.19

$

1.19

$

0.57

Adjusted diluted earnings per share

1.20

1.21

0.23

Adjusted return on average assets

Net income $ 186,200 $ 187,093 $ 93,192

Add: Earnout liability 750 - 4,908 adjustment

Add: Restructuring charges 415 531 2,822

Add/subtract: Investmentsecurities losses (gains), - 1,990 (69,409 )net

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

Subtract/add: Tax effect of (105 ) (638 ) 19,500 adjustments ^(1)

Adjusted net income $ 187,260 $ 188,976 $ 42,306

Net income annualized $ 746,846 $ 758,766 $ 374,816

Adjusted net income $ 751,098 $ 766,403 $ 170,154 annualized

Total average assets $ 55,017,771 $ 54,188,504 $ 52,853,685

Return on average assets 1.36 % 1.40 % 0.71 %

Adjusted return on average 1.37 1.41 0.32 assets





Adjusted net incomeavailable to common shareholders and adjusteddiluted earnings per share

Net income available to $ 177,909 $ 178,802 $ 84,901 common shareholders

Add: Earnout liability 750 - 4,908 adjustment

Add: Restructuring charges 415 531 2,822

Add/subtract: Investmentsecurities losses (gains), - 1,990 (69,409 )net

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

Subtract/add: Tax effect of (105 ) (638 ) 19,500 adjustments ^(1)

Adjusted net incomeavailable to common $ 178,969 $ 180,685 $ 34,015 shareholders

Weighted average common 149,747 149,780 147,733 shares outstanding, diluted

Diluted earnings per share $ 1.19 $ 1.19 $ 0.57

Adjusted diluted earnings 1.20 1.21 0.23 per share

Reconciliation of Non-GAAP Financial Measures, continued

(dollars in thousands)

2Q21

1Q21

2Q20

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

$

177,909

$

178,802

$

84,901

Add: Earnout liability adjustment

750

-

4,908

Add: Restructuring charges

415

531

2,822

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

-

1,990

(69,409

)

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

-

-

(8,707

)

Subtract/add: Tax effect of adjustments (1)

(105

)

(638

)

19,500

Adjusted net income available to common shareholders

$

178,969

$

180,685

$

34,015

Adjusted net income available to common shareholders annualized

$

717,843

$

732,778

$

136,808

Add: Amortization of intangibles, annualized net of tax

7,128

7,207

7,868

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

$

724,971

$

739,985

$

144,676

Net income available to common shareholders annualized

$

713,591

$

725,141

$

341,470

Add: Amortization of intangibles, annualized net of tax

7,128

7,207

7,868

Net income available to common shareholders excluding amortization of intangibles annualized

$

720,719

$

732,348

$

349,338

Total average shareholders' equity less preferred stock

$

4,632,568

$

4,599,076

$

4,567,254

Subtract: Goodwill

(452,390

)

(452,390

)

(497,267

)

Subtract: Other intangible assets, net

(41,399

)

(44,005

)

(51,667

)

Total average tangible shareholders' equity less preferred stock

$

4,138,779

$

4,102,681

$

4,018,320

Return on average common equity

15.40

%

15.77

%

7.48

%

Adjusted return on average common equity

15.50

15.93

3.00

Return on average tangible common equity

17.41

17.85

8.69

Adjusted return on average tangible common equity

17.52

18.04

3.60

Reconciliation of Non-GAAP Financial Measures, continued



(dollars in thousands) 2Q21 1Q21 2Q20



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

Net income available to common $ 177,909 $ 178,802 $ 84,901 shareholders

Add: Earnout liability adjustment 750 - 4,908

Add: Restructuring charges 415 531 2,822

Add/subtract: Investment - 1,990 (69,409 )securities losses (gains), net

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

Subtract/add: Tax effect of (105 ) (638 ) 19,500 adjustments ^(1)

Adjusted net income available to $ 178,969 $ 180,685 $ 34,015 common shareholders



Adjusted net income available to $ 717,843 $ 732,778 $ 136,808 common shareholders annualized

Add: Amortization of intangibles, 7,128 7,207 7,868 annualized net of tax

Adjusted net income available tocommon shareholders excluding $ 724,971 $ 739,985 $ 144,676 amortization of intangiblesannualized



Net income available to common $ 713,591 $ 725,141 $ 341,470 shareholders annualized

Add: Amortization of intangibles, 7,128 7,207 7,868 annualized net of tax

Net income available to commonshareholders excluding $ 720,719 $ 732,348 $ 349,338 amortization of intangiblesannualized



Total average shareholders' $ 4,632,568 $ 4,599,076 $ 4,567,254 equity less preferred stock

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

Subtract: Other intangible (41,399 ) (44,005 ) (51,667 )assets, net

Total average tangibleshareholders' equity less $ 4,138,779 $ 4,102,681 $ 4,018,320 preferred stock

Return on average common equity 15.40 % 15.77 % 7.48 %

Adjusted return on average common 15.50 15.93 3.00 equity

Return on average tangible common 17.41 17.85 8.69 equity

Adjusted return on average 17.52 18.04 3.60 tangible common equity

Reconciliation of Non-GAAP Financial Measures, continued

(dollars in thousands)

June 30, 2021

March 31, 2021

June 30, 2020

Tangible common equity ratio

Total assets

$

54,938,659

$

55,159,011

$

54,121,989

Subtract: Goodwill

(452,390

)

(452,390

)

(497,267

)

Subtract: Other intangible assets, net

(40,354

)

(42,733

)

(50,392

)

Tangible assets

$

54,445,915

$

54,663,888

$

53,574,330

Total shareholders' equity

$

5,237,714

$

5,161,717

$

5,052,968

Subtract: Goodwill

(452,390

)

(452,390

)

(497,267

)

Subtract: Other intangible assets, net

(40,354

)

(42,733

)

(50,392

)

Subtract: Preferred Stock, no par value

(537,145

)

(537,145

)

(537,145

)

Tangible common equity

$

4,207,825

$

4,129,449

$

3,968,164

Total shareholders' equity to total assets ratio

9.53

%

9.36

%

9.34

%

Tangible common equity ratio

7.73

7.55

7.41

(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) June 30, 2021 March 31, June 30, 2020 2021



Tangible common equity ratio

Total assets $ 54,938,659 $ 55,159,011 $ 54,121,989

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

Subtract: Other intangible (40,354 ) (42,733 ) (50,392 )assets, net

Tangible assets $ 54,445,915 $ 54,663,888 $ 53,574,330



Total shareholders' equity $ 5,237,714 $ 5,161,717 $ 5,052,968

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

Subtract: Other intangible (40,354 ) (42,733 ) (50,392 )assets, net

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

Tangible common equity $ 4,207,825 $ 4,129,449 $ 3,968,164

Total shareholders' equity to 9.53 % 9.36 % 9.34 %total assets ratio

Tangible common equity ratio 7.73 7.55 7.41



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

INCOME STATEMENT DATA

(Unaudited)

(Dollars in thousands, except per share data)

Six Months Ended

2021

2020

21 vs '20

% Change

Interest income

$

822,560

$

935,466

(12

)%

Interest expense

66,844

185,640

(64

)

Net interest income

755,716

749,826

1

(Reversal of) provision for credit losses

(43,173

)

300,573

nm

Net interest income after provision for credit losses

798,889

449,253

78

Non-interest revenue:

Service charges on deposit accounts

41,448

36,255

14

Fiduciary and asset management fees

36,759

30,124

22

Card fees

25,300

20,136

26

Brokerage revenue

26,899

22,383

20

Mortgage banking income

36,157

35,757

1

Capital markets income

10,840

17,294

(37

)

Income from bank-owned life insurance

16,031

13,794

16

Investment securities (losses) gains, net

(1,990

)

78,144

nm

Other non-interest revenue

26,599

23,454

13

Total non-interest revenue

218,043

277,341

(21

)

Non-interest expense:

Salaries and other personnel expense

322,044

309,274

4

Net occupancy, equipment, and software expense

82,959

83,921

(1

)

Third-party processing and other services

44,451

45,366

(2

)

Professional fees

17,031

25,980

(34

)

FDIC insurance and other regulatory fees

11,127

12,129

(8

)

Other operating expenses

60,053

83,751

(28

)

Total non-interest expense

537,665

560,421

(4

)

Income before income taxes

479,267

166,173

188

Income tax expense

105,975

34,461

208

Net income

373,292

131,712

183

Less: Preferred stock dividends

16,581

16,581

-

Net income available to common shareholders

$

356,711

$

115,131

210

%

Net income per common share, basic

$

2.41

$

0.78

208

%

Net income per common share, diluted

2.38

0.78

206

Cash dividends declared per common share

0.66

0.66

-

Return on average assets *

1.38

%

0.52

%

86

bps

Return on average common equity *

15.58

5.15

1,043

Weighted average common shares outstanding, basic

148,289

147,300

1

%

Weighted average common shares outstanding, diluted

149,764

148,067

1

nm - not meaningful

bps - basis points

* - ratios are annualized





INCOME STATEMENT DATA

(Unaudited)



(Dollars in thousands, except per share Six Months Ended data)



21 vs '20 2021 2020 % Change



Interest income $ 822,560 $ 935,466 (12 )%

Interest expense 66,844 185,640 (64 )



Net interest income 755,716 749,826 1

(Reversal of) provision for credit losses (43,173 ) 300,573 nm



Net interest income after provision for 798,889 449,253 78 credit losses



Non-interest revenue:

Service charges on deposit accounts 41,448 36,255 14

Fiduciary and asset management fees 36,759 30,124 22

Card fees 25,300 20,136 26

Brokerage revenue 26,899 22,383 20

Mortgage banking income 36,157 35,757 1

Capital markets income 10,840 17,294 (37 )

Income from bank-owned life insurance 16,031 13,794 16

Investment securities (losses) gains, net (1,990 ) 78,144 nm

Other non-interest revenue 26,599 23,454 13



Total non-interest revenue 218,043 277,341 (21 )



Non-interest expense:

Salaries and other personnel expense 322,044 309,274 4

Net occupancy, equipment, and software 82,959 83,921 (1 ) expense

Third-party processing and other services 44,451 45,366 (2 )

Professional fees 17,031 25,980 (34 )

FDIC insurance and other regulatory fees 11,127 12,129 (8 )

Other operating expenses 60,053 83,751 (28 )



Total non-interest expense 537,665 560,421 (4 )



Income before income taxes 479,267 166,173 188

Income tax expense 105,975 34,461 208



Net income 373,292 131,712 183



Less: Preferred stock dividends 16,581 16,581 -



Net income available to common $ 356,711 $ 115,131 210 % shareholders



Net income per common share, basic $ 2.41 $ 0.78 208 %



Net income per common share, diluted 2.38 0.78 206



Cash dividends declared per common share 0.66 0.66 -



Return on average assets * 1.38 % 0.52 % 86 bps

Return on average common equity * 15.58 5.15 1,043



Weighted average common shares 148,289 147,300 1 % outstanding, basic

Weighted average common shares 149,764 148,067 1 outstanding, diluted



nm - not meaningful

bps - basis points

* - ratios are annualized

Synovus

INCOME STATEMENT DATA

(Unaudited)

(Dollars in thousands, except per share data)

2021

2020

Second Quarter

Second Quarter

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

'21 vs '20

% Change

Interest income

$

412,743

409,817

433,479

435,550

451,569

(9

)%

Interest expense

30,883

35,960

47,547

58,560

75,003

(59

)

Net interest income

381,860

373,857

385,932

376,990

376,566

1

(Reversal of) provision for credit losses

(24,598

)

(18,575

)

11,066

43,383

141,851

nm

Net interest income after provision for credit losses

406,458

392,432

374,866

333,607

234,715

73

Non-interest revenue:

Service charges on deposit accounts

21,414

20,033

19,063

17,813

15,567

38

Fiduciary and asset management fees

18,805

17,954

17,242

15,885

14,950

26

Card fees

13,304

11,996

11,743

10,823

9,186

45

Brokerage revenue

13,926

12,974

11,794

10,604

9,984

39

Mortgage banking income

13,842

22,315

24,426

31,229

23,530

(41

)

Capital markets income

3,335

7,505

4,352

5,690

6,050

(45

)

Income from bank-owned life insurance

7,188

8,843

9,725

7,778

7,756

(7

)

Investment securities (losses)/gains, net

-

(1,990

)

2,337

(1,550

)

69,409

nm

Other non-interest revenue

15,273

11,326

14,079

16,139

17,052

(10

)

Total non-interest revenue

107,087

110,956

114,761

114,411

173,484

(38

)

Non-interest expense:

Salaries and other personnel expense

160,567

161,477

153,946

154,994

159,597

1

Net occupancy, equipment, and software expense

41,825

41,134

44,183

41,554

41,727

-

Third-party processing and other services

24,419

20,032

20,799

21,827

22,666

8

Professional fees

7,947

9,084

17,541

13,377

15,305

(48

)

FDIC insurance and other regulatory fees

5,547

5,579

6,288

6,793

6,851

(19

)

Other operating expenses

30,226

29,828

59,741

78,110

37,995

(20

)

Total non-interest expense

270,531

267,134

302,498

316,655

284,141

(5

)

Income before income taxes

243,014

236,254

187,129

131,363

124,058

96

Income tax expense

56,814

49,161

36,720

39,789

30,866

84

Net income

186,200

187,093

150,409

91,574

93,192

100

Less: Preferred stock dividends

8,291

8,291

8,291

8,291

8,291

-

Net income available to common shareholders

$

177,909

178,802

142,118

83,283

84,901

110

%

Net income per common share, basic

$

1.20

1.20

0.96

0.57

0.58

107

%

Net income per common share, diluted

1.19

1.19

0.96

0.56

0.57

109

Cash dividends declared per common share

0.33

0.33

0.33

0.33

0.33

-

Return on average assets *

1.36

%

1.40

1.11

0.69

0.71

65

bps

Return on average common equity *

15.40

15.77

12.31

7.28

7.48

792

Weighted average common shares outstanding, basic

148,113

148,467

147,744

147,314

147,288

1

%

Weighted average common shares outstanding, diluted

149,747

149,780

148,725

147,976

147,733

1

nm - not meaningful

bps - basis points

* - ratios are annualized

Synovus



INCOME STATEMENT DATA

(Unaudited)



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



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



Interest $ 412,743 409,817 433,479 435,550 451,569 (9 )% income

Interest 30,883 35,960 47,547 58,560 75,003 (59 ) expense



Net interest 381,860 373,857 385,932 376,990 376,566 1 income

(Reversal of) provision (24,598 ) (18,575 ) 11,066 43,383 141,851 nm for credit losses



Net interest income after provision 406,458 392,432 374,866 333,607 234,715 73 for credit losses



Non-interest revenue:

Service charges on 21,414 20,033 19,063 17,813 15,567 38 deposit accounts

Fiduciary and asset 18,805 17,954 17,242 15,885 14,950 26 management fees

Card fees 13,304 11,996 11,743 10,823 9,186 45

Brokerage 13,926 12,974 11,794 10,604 9,984 39 revenue

Mortgage banking 13,842 22,315 24,426 31,229 23,530 (41 ) income

Capital markets 3,335 7,505 4,352 5,690 6,050 (45 ) income

Income from bank-owned 7,188 8,843 9,725 7,778 7,756 (7 ) life insurance

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

Other non-interest 15,273 11,326 14,079 16,139 17,052 (10 ) revenue



Total non-interest 107,087 110,956 114,761 114,411 173,484 (38 ) revenue



Non-interest expense:

Salaries and other 160,567 161,477 153,946 154,994 159,597 1 personnel expense

Net occupancy, equipment, 41,825 41,134 44,183 41,554 41,727 - and software expense

Third-party processing 24,419 20,032 20,799 21,827 22,666 8 and other services

Professional 7,947 9,084 17,541 13,377 15,305 (48 ) fees

FDIC insurance and other 5,547 5,579 6,288 6,793 6,851 (19 ) regulatory fees

Other operating 30,226 29,828 59,741 78,110 37,995 (20 ) expenses



Total non-interest 270,531 267,134 302,498 316,655 284,141 (5 ) expense



Income before 243,014 236,254 187,129 131,363 124,058 96 income taxes

Income tax 56,814 49,161 36,720 39,789 30,866 84 expense



Net income 186,200 187,093 150,409 91,574 93,192 100



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



Net income available to $ 177,909 178,802 142,118 83,283 84,901 110 % common shareholders



Net income per common $ 1.20 1.20 0.96 0.57 0.58 107 % share, basic



Net income per common 1.19 1.19 0.96 0.56 0.57 109 share, diluted



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



Return on average 1.36 % 1.40 1.11 0.69 0.71 65 bps assets *

Return on average 15.40 15.77 12.31 7.28 7.48 792 common equity *



Weighted average common 148,113 148,467 147,744 147,314 147,288 1 % shares outstanding, basic

Weighted average common 149,747 149,780 148,725 147,976 147,733 1 shares outstanding, diluted



nm - not meaningful

bps - basis points

* - ratios are annualized

Synovus

BALANCE SHEET DATA

June 30, 2021

December 31, 2020

June 30, 2020

(Unaudited)

(In thousands, except share data)

ASSETS

Cash and due from banks

$

560,396

$

531,579

$

572,169

Interest-bearing funds with Federal Reserve Bank

2,598,213

3,586,565

860,289

Interest earning deposits with banks

21,513

20,944

20,719

Federal funds sold and securities purchased under resale agreements

82,554

113,829

118,048

Cash, cash equivalents, and restricted cash

3,262,676

4,252,917

1,571,225

Investment securities available for sale, at fair value

9,442,170

7,962,438

7,197,493

Loans held for sale ($202,216, $216,647, and $266,306 measured at fair value, respectively)

750,916

760,123

900,936

Loans, net of deferred fees and costs

38,236,018

38,252,984

39,914,297

Allowance for loan losses

(516,708

)

(605,736

)

(588,648

)

Loans, net

37,719,310

37,647,248

39,325,649

Cash surrender value of bank-owned life insurance

1,059,235

1,049,373

1,038,049

Premises, equipment, and software, net

446,447

463,959

481,716

Goodwill

452,390

452,390

497,267

Other intangible assets, net

40,354

45,112

50,392

Receivable on unsettled securities sales

-

-

1,289,116

Other assets

1,765,161

1,760,599

1,770,146

Total assets

$

54,938,659

$

54,394,159

$

54,121,989

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Deposits:

Non-interest-bearing deposits

$

15,345,629

$

13,477,854

$

12,555,714

Interest-bearing deposits

31,826,333

33,213,717

31,638,866

Total deposits

47,171,962

46,691,571

44,194,580

Federal funds purchased and securities sold under repurchase agreements

194,786

227,922

225,576

Other short-term borrowings

-

7,717

300,000

Long-term debt

1,203,293

1,202,494

2,327,921

Due on unsettled securities purchases

48,795

-

922,952

Other liabilities

1,082,109

1,103,121

1,097,992

Total liabilities

49,700,945

49,232,825

49,069,021

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 169,107,609, 168,132,522, and 167,405,730; outstanding 147,071,532, 148,039,495, and 147,312,703

169,108

168,133

167,406

Additional paid-in capital

3,872,949

3,851,208

3,826,726

Treasury stock, at cost - 22,036,077, 20,093,027, and 20,093,027 shares

(824,197

)

(731,806

)

(731,806

)

Accumulated other comprehensive income, net

45,726

158,635

202,970

Retained earnings

1,436,983

1,178,019

1,050,527

Total shareholders' equity

5,237,714

5,161,334

5,052,968

Total liabilities and shareholders' equity

$

54,938,659

$

54,394,159

$

54,121,989

Synovus





BALANCE SHEET DATA June 30, 2021 December 31, June 30, 2020 2020



(Unaudited)



(In thousands, except share data)



ASSETS

Cash and due from banks $ 560,396 $ 531,579 $ 572,169

Interest-bearing funds 2,598,213 3,586,565 860,289 with Federal Reserve Bank

Interest earning deposits 21,513 20,944 20,719 with banks

Federal funds sold and securities purchased under 82,554 113,829 118,048 resale agreements

Cash, cash equivalents, 3,262,676 4,252,917 1,571,225 and restricted cash



Investment securities available for sale, at 9,442,170 7,962,438 7,197,493 fair value

Loans held for sale ($202,216, $216,647, and 750,916 760,123 900,936 $266,306 measured at fair value, respectively)



Loans, net of deferred 38,236,018 38,252,984 39,914,297 fees and costs

Allowance for loan losses (516,708 ) (605,736 ) (588,648 )

Loans, net 37,719,310 37,647,248 39,325,649



Cash surrender value of 1,059,235 1,049,373 1,038,049 bank-owned life insurance

Premises, equipment, and 446,447 463,959 481,716 software, net

Goodwill 452,390 452,390 497,267

Other intangible assets, 40,354 45,112 50,392 net

Receivable on unsettled - - 1,289,116 securities sales

Other assets 1,765,161 1,760,599 1,770,146

Total assets $ 54,938,659 $ 54,394,159 $ 54,121,989



LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Deposits:

Non-interest-bearing $ 15,345,629 $ 13,477,854 $ 12,555,714 deposits

Interest-bearing deposits 31,826,333 33,213,717 31,638,866



Total deposits 47,171,962 46,691,571 44,194,580



Federal funds purchased and securities sold under 194,786 227,922 225,576 repurchase agreements

Other short-term - 7,717 300,000 borrowings

Long-term debt 1,203,293 1,202,494 2,327,921

Due on unsettled 48,795 - 922,952 securities purchases

Other liabilities 1,082,109 1,103,121 1,097,992

Total liabilities 49,700,945 49,232,825 49,069,021



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 169,107,609, 168,132,522, 169,108 168,133 167,406 and 167,405,730; outstanding 147,071,532, 148,039,495, and 147,312,703

Additional paid-in capital 3,872,949 3,851,208 3,826,726

Treasury stock, at cost - 22,036,077, 20,093,027, (824,197 ) (731,806 ) (731,806 ) and 20,093,027 shares

Accumulated other 45,726 158,635 202,970 comprehensive income, net

Retained earnings 1,436,983 1,178,019 1,050,527

Total shareholders' equity 5,237,714 5,161,334 5,052,968

Total liabilities and $ 54,938,659 $ 54,394,159 $ 54,121,989 shareholders' equity

Synovus

AVERAGE BALANCES AND YIELDS/RATES (1)

(Unaudited)

(Dollars in thousands)

2021

2020

Second

First

Fourth

Third

Second

Quarter

Quarter

Quarter

Quarter

Quarter

Interest Earning Assets

Investment securities (2) (4)

$

9,184,691

8,437,563

7,493,822

7,227,400

6,618,533

Yield

1.45

%

1.40

2.07

2.39

2.72

Trading account assets (5)

$

2,831

3,063

8,496

5,391

6,173

Yield

1.15

%

2.81

1.03

1.69

2.19

Commercial loans (3) (4)

$

29,849,029

29,844,491

30,363,102

30,730,135

30,236,919

Yield

3.86

%

3.95

3.96

3.80

3.95

Consumer loans (3)

$

8,647,448

8,367,776

8,521,449

9,032,437

9,899,172

Yield

3.94

%

3.98

4.00

4.08

4.34

Allowance for loan losses

$

(561,242

)

(599,872

)

(595,547

)

(591,098

)

(498,545

)

Loans, net (3)

$

37,935,235

37,612,395

38,289,004

39,171,474

39,637,546

Yield

3.93

%

4.02

4.03

3.92

4.08

Mortgage loans held for sale

$

242,940

246,962

309,278

244,952

221,157

Yield

3.06

%

2.68

2.74

2.92

3.09

Other loans held for sale

$

615,301

660,753

544,301

493,940

19,246

Yield

3.05

%

2.91

2.81

3.61

4.19

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

$

2,705,819

2,838,063

2,716,645

1,265,880

1,709,086

Yield

0.11

%

0.10

0.10

0.11

0.11

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

$

159,340

157,657

162,537

200,923

247,801

Yield

2.01

%

1.69

2.64

2.73

3.60

Total interest earning assets

$

50,846,157

49,956,456

49,524,083

48,609,960

48,459,542

Yield

3.26

%

3.32

3.49

3.58

3.75

Interest-Bearing Liabilities

Interest-bearing demand deposits

$

8,601,262

8,570,753

8,531,415

7,789,095

7,260,940

Rate

0.11

%

0.14

0.16

0.19

0.21

Money Market accounts

$

15,476,262

15,348,916

14,411,860

13,272,972

12,238,479

Rate

0.19

%

0.23

0.26

0.36

0.46

Savings deposits

$

1,333,297

1,219,288

1,147,667

1,114,956

1,036,024

Rate

0.02

%

0.02

0.01

0.02

0.02

Time deposits under $100,000

$

1,077,931

1,161,306

1,239,592

1,379,923

1,621,943

Rate

0.41

%

0.56

0.74

1.03

1.43

Time deposits over $100,000

$

2,714,451

2,993,996

3,302,959

3,863,821

4,772,555

Rate

0.56

%

0.74

1.03

1.44

1.80

Other brokered deposits

$

1,901,097

1,950,582

1,978,393

1,912,114

1,998,571

Rate

0.19

%

0.20

0.23

0.23

0.25

Brokered time deposits

$

1,156,510

1,418,751

1,795,982

2,232,940

2,244,429

Rate

1.35

%

1.50

1.60

1.59

1.86

Total interest-bearing deposits

$

32,260,810

32,663,592

32,407,868

31,565,821

31,172,941

Rate

0.24

%

0.31

0.39

0.54

0.73

Federal funds purchased and securities sold under repurchase agreements

$

204,053

209,448

174,316

180,342

250,232

Rate

0.07

%

0.07

0.07

0.09

0.12

Other short-term borrowings

$

-

-

-

46,739

550,000

Rate

-

%

-

-

1.12

1.23

Long-term debt

$

1,203,038

1,202,613

1,552,791

2,234,665

2,834,188

Rate

3.82

%

3.63

3.96

2.71

2.36

Total interest-bearing liabilities

$

33,667,901

34,075,653

34,134,975

34,027,567

34,807,361

Rate

0.36

%

0.42

0.55

0.68

0.86

Non-interest-bearing demand deposits

$

15,088,836

13,791,286

13,566,112

12,773,676

11,923,534

Cost of funds

0.25

%

0.30

0.40

0.50

0.65

Effective cost of funds(6)

0.24

%

0.28

0.37

0.48

0.62

Net interest margin

3.02

%

3.04

3.12

3.10

3.13

Taxable equivalent adjustment (4)

$

791

774

821

956

861

(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)

(Dollars in thousands) 2020 2021



Second First Fourth Third Second

Quarter Quarter Quarter Quarter Quarter

Interest Earning Assets

Investment $ 9,184,691 8,437,563 7,493,822 7,227,400 6,618,533 securities^ (2) (4)

Yield 1.45 % 1.40 2.07 2.39 2.72

Trading account $ 2,831 3,063 8,496 5,391 6,173 assets ^(5)

Yield 1.15 % 2.81 1.03 1.69 2.19

Commercial loans ^ $ 29,849,029 29,844,491 30,363,102 30,730,135 30,236,919 (3) (4)

Yield 3.86 % 3.95 3.96 3.80 3.95

Consumer loans ^(3) $ 8,647,448 8,367,776 8,521,449 9,032,437 9,899,172

Yield 3.94 % 3.98 4.00 4.08 4.34

Allowance for loan $ (561,242 ) (599,872 ) (595,547 ) (591,098 ) (498,545 ) losses

Loans, net ^(3) $ 37,935,235 37,612,395 38,289,004 39,171,474 39,637,546

Yield 3.93 % 4.02 4.03 3.92 4.08

Mortgage loans held $ 242,940 246,962 309,278 244,952 221,157 for sale

Yield 3.06 % 2.68 2.74 2.92 3.09

Other loans held for $ 615,301 660,753 544,301 493,940 19,246 sale

Yield 3.05 % 2.91 2.81 3.61 4.19

Federal funds sold, due from Federal Reserve Bank, and $ 2,705,819 2,838,063 2,716,645 1,265,880 1,709,086 other short-term investments

Yield 0.11 % 0.10 0.10 0.11 0.11

Federal Home Loan Bank and Federal $ 159,340 157,657 162,537 200,923 247,801 Reserve Bank Stock ^ (5)

Yield 2.01 % 1.69 2.64 2.73 3.60

Total interest $ 50,846,157 49,956,456 49,524,083 48,609,960 48,459,542 earning assets

Yield 3.26 % 3.32 3.49 3.58 3.75

Interest-Bearing Liabilities

Interest-bearing $ 8,601,262 8,570,753 8,531,415 7,789,095 7,260,940 demand deposits

Rate 0.11 % 0.14 0.16 0.19 0.21

Money Market $ 15,476,262 15,348,916 14,411,860 13,272,972 12,238,479 accounts

Rate 0.19 % 0.23 0.26 0.36 0.46

Savings deposits $ 1,333,297 1,219,288 1,147,667 1,114,956 1,036,024

Rate 0.02 % 0.02 0.01 0.02 0.02

Time deposits under $ 1,077,931 1,161,306 1,239,592 1,379,923 1,621,943 $100,000

Rate 0.41 % 0.56 0.74 1.03 1.43

Time deposits over $ 2,714,451 2,993,996 3,302,959 3,863,821 4,772,555 $100,000

Rate 0.56 % 0.74 1.03 1.44 1.80

Other brokered $ 1,901,097 1,950,582 1,978,393 1,912,114 1,998,571 deposits

Rate 0.19 % 0.20 0.23 0.23 0.25

Brokered time $ 1,156,510 1,418,751 1,795,982 2,232,940 2,244,429 deposits

Rate 1.35 % 1.50 1.60 1.59 1.86

Total interest-bearing $ 32,260,810 32,663,592 32,407,868 31,565,821 31,172,941 deposits

Rate 0.24 % 0.31 0.39 0.54 0.73

Federal funds purchased and securities sold $ 204,053 209,448 174,316 180,342 250,232 under repurchase agreements

Rate 0.07 % 0.07 0.07 0.09 0.12

Other short-term $ - - - 46,739 550,000 borrowings

Rate - % - - 1.12 1.23

Long-term debt $ 1,203,038 1,202,613 1,552,791 2,234,665 2,834,188

Rate 3.82 % 3.63 3.96 2.71 2.36

Total interest-bearing $ 33,667,901 34,075,653 34,134,975 34,027,567 34,807,361 liabilities

Rate 0.36 % 0.42 0.55 0.68 0.86

Non-interest-bearing $ 15,088,836 13,791,286 13,566,112 12,773,676 11,923,534 demand deposits

Cost of funds 0.25 % 0.30 0.40 0.50 0.65

Effective cost of 0.24 % 0.28 0.37 0.48 0.62 funds^(6)

Net interest margin 3.02 % 3.04 3.12 3.10 3.13

Taxable equivalent $ 791 774 821 956 861 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

June 30, 2021

March 31, 2021

% Change

June 30, 2020

% Change

Commercial, Financial, and Agricultural

$

12,085,534

$

12,662,329

(5

)%

$

12,947,164

(7

)%

Owner-Occupied

7,064,599

7,031,505

-

7,084,481

-

Total Commercial & Industrial

19,150,133

19,693,834

(3

)

20,031,645

(4

)

Multi-Family

2,086,641

2,220,939

(6

)

2,247,959

(7

)

Hotels

1,411,443

1,462,370

(3

)

1,362,183

4

Office Buildings

2,340,378

2,280,053

3

2,244,366

4

Shopping Centers

1,645,275

1,662,158

(1

)

1,775,638

(7

)

Warehouses

657,699

692,267

(5

)

779,109

(16

)

Other Investment Property

1,076,577

1,017,938

6

826,302

30

Total Investment Properties

9,218,013

9,335,725

(1

)

9,235,557

-

1-4 Family Construction

174,009

189,626

(8

)

229,806

(24

)

1-4 Family Investment Mortgage

462,335

449,328

3

466,577

(1

)

Total 1-4 Family Properties

636,344

638,954

-

696,383

(9

)

Commercial Development

120,683

142,380

(15

)

112,426

7

Residential Development

164,950

196,653

(16

)

270,145

(39

)

Land Acquisition

221,061

220,216

-

299,659

(26

)

Land and Development

506,694

559,249

(9

)

682,230

(26

)

Total Commercial Real Estate

10,361,051

10,533,928

(2

)

10,614,170

(2

)

Consumer Mortgages

5,200,762

5,299,175

(2

)

5,817,525

(11

)

Home Equity Lines

1,358,211

1,432,367

(5

)

1,724,973

(21

)

Credit Cards

285,508

267,371

7

250,448

14

Other Consumer Loans

1,880,353

1,578,426

19

1,475,536

27

Total Consumer

8,724,834

8,577,339

2

9,268,482

(6

)

Total

$

38,236,018

$

38,805,101

(1

)%

$

39,914,297

(4

)%

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

June 30, 2021

March 31, 2021

% Change

June 30, 2020

% Change

Commercial, Financial, and Agricultural

$

70,943

$

76,460

(7

)%

$

83,000

(15

)%

Owner-Occupied

13,155

17,192

(23

)

19,605

(33

)

Total Commercial & Industrial

84,098

93,652

(10

)

102,605

(18

)

Multi-Family

2,407

2,698

(11

)

-

nm

Office Buildings

1,618

1,645

(2

)

836

94

Shopping Centers

124

20,138

(99

)

409

(70

)

Warehouses

218

221

(1

)

-

nm

Other Investment Property

407

887

(54

)

393

4

Total Investment Properties

4,774

25,589

(81

)

1,638

191

1-4 Family Construction

548

1,291

(58

)

2,593

(79

)

1-4 Family Investment Mortgage

1,927

2,760

(30

)

1,844

5

Total 1-4 Family Properties

2,475

4,051

(39

)

4,437

(44

)

Commercial Development

560

567

(1

)

840

(33

)

Residential Development

451

452

-

685

(34

)

Land Acquisition

1,029

782

32

1,042

(1

)

Land and Development

2,040

1,801

13

2,567

(21

)

Total Commercial Real Estate

9,289

31,441

(70

)

8,642

7

Consumer Mortgages

51,376

11,201

359

17,438

195

Home Equity Lines

8,938

12,191

(27

)

14,200

(37

)

Other Consumer Loans

7,327

6,684

10

4,552

61

Total Consumer

67,641

30,076

125

36,190

87

Total

$

161,028

$

155,169

4

%

$

147,437

9

%

Synovus

LOANSOUTSTANDING BY TYPE

(Unaudited)

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



Loan Type June 30, 2021 March 31, 2021 % June 30, 2020 % Change Change

Commercial,Financial, and $ 12,085,534 $ 12,662,329 (5 )% $ 12,947,164 (7 )%Agricultural

Owner-Occupied 7,064,599 7,031,505 - 7,084,481 -

TotalCommercial & 19,150,133 19,693,834 (3 ) 20,031,645 (4 )Industrial

Multi-Family 2,086,641 2,220,939 (6 ) 2,247,959 (7 )

Hotels 1,411,443 1,462,370 (3 ) 1,362,183 4

Office 2,340,378 2,280,053 3 2,244,366 4 Buildings

Shopping 1,645,275 1,662,158 (1 ) 1,775,638 (7 )Centers

Warehouses 657,699 692,267 (5 ) 779,109 (16 )

OtherInvestment 1,076,577 1,017,938 6 826,302 30 Property

TotalInvestment 9,218,013 9,335,725 (1 ) 9,235,557 - Properties

1-4 Family 174,009 189,626 (8 ) 229,806 (24 )Construction

1-4 FamilyInvestment 462,335 449,328 3 466,577 (1 )Mortgage

Total 1-4Family 636,344 638,954 - 696,383 (9 )Properties

Commercial 120,683 142,380 (15 ) 112,426 7 Development

Residential 164,950 196,653 (16 ) 270,145 (39 )Development

Land 221,061 220,216 - 299,659 (26 )Acquisition

Land and 506,694 559,249 (9 ) 682,230 (26 )Development

TotalCommercial 10,361,051 10,533,928 (2 ) 10,614,170 (2 )Real Estate

Consumer 5,200,762 5,299,175 (2 ) 5,817,525 (11 )Mortgages

Home Equity 1,358,211 1,432,367 (5 ) 1,724,973 (21 )Lines

Credit Cards 285,508 267,371 7 250,448 14

Other Consumer 1,880,353 1,578,426 19 1,475,536 27 Loans

Total Consumer 8,724,834 8,577,339 2 9,268,482 (6 )

Total $ 38,236,018 $ 38,805,101 (1 )% $ 39,914,297 (4 )%



NON-PERFORMING LOANS COMPOSITION

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

Loan Type June 30, 2021 March 31, 2021 % June 30, 2020 % Change Change

Commercial,Financial, and $ 70,943 $ 76,460 (7 )% $ 83,000 (15 )%Agricultural

Owner-Occupied 13,155 17,192 (23 ) 19,605 (33 )

TotalCommercial & 84,098 93,652 (10 ) 102,605 (18 )Industrial

Multi-Family 2,407 2,698 (11 ) - nm

Office 1,618 1,645 (2 ) 836 94 Buildings

Shopping 124 20,138 (99 ) 409 (70 )Centers

Warehouses 218 221 (1 ) - nm

OtherInvestment 407 887 (54 ) 393 4 Property

TotalInvestment 4,774 25,589 (81 ) 1,638 191 Properties

1-4 Family 548 1,291 (58 ) 2,593 (79 )Construction

1-4 FamilyInvestment 1,927 2,760 (30 ) 1,844 5 Mortgage

Total 1-4Family 2,475 4,051 (39 ) 4,437 (44 )Properties

Commercial 560 567 (1 ) 840 (33 )Development

Residential 451 452 - 685 (34 )Development

Land 1,029 782 32 1,042 (1 )Acquisition

Land and 2,040 1,801 13 2,567 (21 )Development

TotalCommercial 9,289 31,441 (70 ) 8,642 7 Real Estate

Consumer 51,376 11,201 359 17,438 195 Mortgages

Home Equity 8,938 12,191 (27 ) 14,200 (37 )Lines

Other Consumer 7,327 6,684 10 4,552 61 Loans

Total Consumer 67,641 30,076 125 36,190 87

Total $ 161,028 $ 155,169 4 % $ 147,437 9 %

Synovus

CREDIT QUALITY DATA

(Unaudited)

(Dollars in thousands)

2021

2020

Second Quarter

Second

First

Fourth

Third

Second

'21 vs '20

Quarter

Quarter

Quarter

Quarter

Quarter

% Change

Non-performing Loans (NPLs)

$

161,028

155,169

151,079

168,837

147,437

9

%

Impaired Loans Held for Sale

-

23,590

23,590

-

-

nm

Other Real Estate and Other Assets

16,806

16,849

17,394

23,280

30,242

(44

)

Non-performing Assets (NPAs)

177,834

195,608

192,063

192,117

177,679

-

Allowance for Loan Losses (ALL)

516,708

563,214

605,736

603,800

588,648

(12

)

Reserve for Unfunded Commitments

46,890

51,528

47,785

60,794

61,029

(23

)

Allowance for Credit Losses (ACL)

563,598

614,742

653,521

664,594

649,677

(13

)

Net Charge-Offs - Quarter

26,547

20,204

22,139

28,466

24,046

Net Charge-Offs - YTD

46,750

20,204

94,712

72,573

44,107

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

0.28

%

0.21

0.23

0.29

0.24

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

0.24

0.21

0.24

0.25

0.23

NPLs / Loans

0.42

0.40

0.39

0.43

0.37

NPAs / Loans, ORE and specific other assets

0.46

0.50

0.50

0.49

0.44

ACL/Loans

1.47

1.58

1.71

1.68

1.63

ALL/Loans

1.35

1.45

1.58

1.53

1.47

ACL/NPLs

350.00

396.18

432.57

393.63

440.65

ALL/NPLs

320.88

362.97

400.94

357.62

399.25

Past Due Loans over 90 days and Still Accruing

$

4,415

3,804

4,117

7,512

8,391

(47

)

As a Percentage of Loans Outstanding

0.01

%

0.01

0.01

0.02

0.02

Total Past Due Loans and Still Accruing

$

49,321

45,693

47,349

57,316

46,390

6

As a Percentage of Loans Outstanding

0.13

%

0.12

0.12

0.14

0.12

Accruing Troubled Debt Restructurings (TDRs)

$

124,528

129,776

134,972

163,511

166,461

(25

)

(1) Ratio is annualized.

SELECTED CAPITAL INFORMATION (1)

(Unaudited)

(Dollars in thousands)

June 30, 2021

December 31, 2020

June 30, 2020

Tier 1 Capital

$

4,751,865

4,572,010

4,364,374

Total Risk-Based Capital

5,725,176

5,604,230

5,459,568

Common Equity Tier 1 Capital Ratio

9.75

%

9.66

8.90

Tier 1 Capital Ratio

10.99

10.95

10.15

Total Risk-Based Capital Ratio

13.25

13.42

12.70

Tier 1 Leverage Ratio

8.72

8.50

8.38

Common Equity as a Percentage of Total Assets (2)

8.56

8.51

8.34

Tangible Common Equity Ratio (3) (5)

7.73

7.66

7.41

Book Value Per Common Share (4)

$

31.96

31.24

30.65

Tangible Book Value Per Common Share (3)

28.61

27.88

26.94

(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/20210720005380/en/

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

CONTACT: Investor Contact Kevin Brown Investor Relations (706) 641-6500