Business Wire | Oct 19, 2021 06:31AM EDT

Synovus Announces Earnings for the Third Quarter 2021

Oct. 19, 2021

COLUMBUS, Ga.--(BUSINESS WIRE)--Oct. 19, 2021--Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended September 30, 2021.

Third Quarter 2021 Highlights

* Net income available to common shareholders of $178.5 million or $1.21 per diluted share, up $0.02 sequentially and up $0.65 compared to prior year. Adjusted diluted EPS of $1.20, unchanged sequentially and up $0.31 compared to prior year. * Period-end loans increased $105.0 million sequentially, or $922.7 million excluding Paycheck Protection program (PPP) loans. PPP loans declined $817.7 million sequentially. * Core transaction deposits (non-interest bearing, NOW/savings, and money market deposits excluding public and brokered funds) increased $1.03 billion or 3% sequentially. * Total deposit costs of 0.13% down 3 bps sequentially due to ongoing repricing and product remixing. * Net interest income of $384.9 million increased $3.1 million sequentially as asset growth, reduced deposit costs, and a higher day count more than offset continued fixed-rate repricing and the slight reduction in LIBOR. Net interest margin of 3.01%, down 1 bp sequentially. * Non-interest revenue increased $7.9 million as broad-based growth helped to offset continued normalization of net mortgage revenue. Adjusted non-interest revenue increased $8.1 million. * Non-interest expense decreased $3.5 million sequentially as reductions in third-party processing and other services offset increases in other areas such as net occupancy, equipment, and software expense. Adjusted non-interest expense decreased $1.2 million sequentially. * Pre-provision net revenue of $232.8 million increased $14.4 million sequentially as total revenue increased $10.9 million and non-interest expense decreased $3.5 million. * Reversal of provision for credit losses of $7.9 million, primarily from a more favorable economic outlook. Allowance for credit losses coverage ratio (to loans) of 1.40%, or 1.42% excluding PPP loans. * Credit quality metrics remain relatively stable, near historical lows. The net charge-off ratio declined 6 bps from prior quarter to 0.22%; the non-performing loan and asset ratios each fell 1 bp to 0.41% and 0.45%, respectively; and criticized and classified loans declined 22%. * Preliminary CET1 ratio declined 12 bps sequentially to 9.63%, with strong core earnings helping offset the decline from deploying capital for balance sheet growth and returning capital to shareholders. Includes $74.6 million in share repurchases at an average price of $42.00. * Achieved pre-tax run rate benefit of approximately $100 million at the end of the quarter from a combination of revenue and expense initiatives under Synovus Forward, which is designed to make Synovus a more efficient, profitable, and nimble organization. On track to achieve an aggregate $175 million pre-tax run rate benefit by the end of 2022.

Third Quarter Summary

Reported Adjusted

(dollars in 3Q21 2Q21 3Q20 3Q21 2Q21 3Q20thousands)

Net incomeavailable to $ 178,482 $ 177,909 $ 83,283 $ 177,760 $ 178,969 $ 131,364 commonshareholders

Dilutedearnings per 1.21 1.19 0.56 1.20 1.20 0.89 share

Total loans 38,341,030 38,236,018 39,549,847 N/A N/A N/A

Total 47,688,419 47,171,962 44,665,904 N/A N/A N/A deposits

Total TE^(1) 500,608 489,738 492,357 499,743 488,612 492,851 revenue

Return on 1.34 % 1.36 % 0.69 % 1.33 % 1.37 % 1.05 %avg assets

Return onavg common 14.96 15.40 7.28 14.90 15.50 11.48 equity

Return onavg tangible 16.85 17.41 8.46 16.79 17.52 13.24 commonequity

Net interest 3.01 3.02 3.10 N/A N/A N/A margin

Efficiency 53.34 55.24 64.31 52.96 54.41 53.83 ratio-TE^(1)

NCO ratio 0.22 0.28 0.29 N/A N/A N/A

NPA ratio 0.45 0.46 0.49 N/A N/A N/A

^(1) Taxableequivalent

"Our third quarter story was shaped by an intense focus on growth, and we are pleased with the results," said Kevin Blair, Synovus president and CEO. "Loans, excluding PPP, grew $923 million, core transaction deposits were up $1.0 billion, and pre-provision net revenue increased 7 percent versus the second quarter. Our ongoing Synovus Forward initiatives reached a pre-tax run rate benefit of $100 million by quarter end and we are executing on an additional $75 million of benefits to be delivered by the end of 2022. Synovus Forward represents our ongoing innovation and profitable growth mindset, guiding our efforts to deliver sustainable, top quartile financial performance and enabling us to invest in areas with long-term benefit. With these strategic investments, combined with the momentum we are experiencing in our core businesses, our team is confident in our ability to continue to deliver as we build the bank of the future."

Balance Sheet

Loans^*



Linked Linked Year/(dollars in 3Q21 2Q21 Quarter Quarter 3Q20 Year/Year Yearmillions) Change % Change % Change Change

Commercial & $ 18,934.8 $ 19,150.1 $ (215.3 ) (1 )% $ 20,123.6 $ (1,188.9 ) (6 )%industrial

Commercial real 10,540.3 10,361.1 179.2 2 10,736.1 (195.8 ) (2 )estate

Consumer 8,866.0 8,724.8 141.1 2 8,690.1 175.8 2

Total loans $ 38,341.0 $ 38,236.0 $ 105.0 - % $ 39,549.8 $ (1,208.9 ) (3 )%

^*Amounts may not total dueto rounding

* Total loans ended the quarter at $38.34 billion, up $105.0 million sequentially, or $922.7 million excluding PPP loans. * Commercial and industrial (C&I) loans declined $215.3 million sequentially, led by a decline in PPP loan balances of $817.7 million. C&I loan growth of $602.3 million excluding PPP balance changes despite line utilization remaining near historic lows at 39%. * CRE loans increased $179.2 million, primarily in the income-producing real estate portfolio. * Consumer loans increased $141.1 million sequentially, with growth of $266.5 million in third-party consumer lending offsetting declines in consumer mortgages and HELOCs of $92.3 million and $50.0 million, respectively.

Deposits^*



Linked Linked Year/(dollars in 3Q21 2Q21 Quarter Quarter 3Q20 Year/Year Yearmillions) Change % Change % Change Change

Non-interest-bearing $ 14,832.9 $ 14,342.6 $ 490.3 3 % $ 12,129.8 $ 2,703.2 22 %DDA

Interest-bearing DDA 6,056.0 5,839.8 216.2 4 5,291.1 764.8 14

Money market 14,267.4 13,983.1 284.3 2 12,441.3 1,826.1 15

Savings 1,380.4 1,341.5 39.0 3 1,126.0 254.4 23

Public funds 5,791.6 5,804.9 (13.3 ) - 5,791.9 (0.4 ) -

Time deposits 2,579.3 2,891.1 (311.8 ) (11 ) 3,976.5 (1,397.1 ) (35 )

Brokered deposits 2,780.7 2,969.0 (188.3 ) (6 ) 3,909.3 (1,128.6 ) (29 )

Total deposits $ 47,688.4 $ 47,172.0 $ 516.5 1 % $ 44,665.9 $ 3,022.5 7 %

^*Amounts may not total due torounding

* Total deposits ended the quarter at $47.69 billion, up $516.5 million sequentially. * Core transaction deposits increased $1.03 billion or 3% sequentially. Broad-based growth in DDA, NOW, MMA, and savings accounts supported strategic declines in higher cost deposits. * Total deposit costs declined 3 bps sequentially to 0.13%.

Income Statement Summary^**



(in Linked Linked Year/thousands, 3Q21 2Q21 Quarter Quarter 3Q20 Year/Year Yearexcept per Change % Change %share data) Change Change

Net interest $ 384,917 $ 381,860 $ 3,057 1 % $ 376,990 $ 7,927 2 %income

Non-interest 114,955 107,087 7,868 7 114,411 544 - revenue

Non-interest 267,032 270,531 (3,499 ) (1 ) 316,655 (49,623 ) (16 )expense

(Reversalof)provision (7,868 ) (24,598 ) 16,730 68 43,383 (51,251 ) nm for creditlosses

Income $ 240,708 $ 243,014 $ (2,306 ) (1 )% $ 131,363 $ 109,345 83 %before taxes

Income tax 53,935 56,814 (2,879 ) (5 ) 39,789 14,146 36 expense

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

Net incomeavailable to $ 178,482 $ 177,909 $ 573 - % $ 83,283 $ 95,199 114 %commonshareholders

Weightedaveragecommon 147,701 149,747 (2,046 ) (1 )% 147,976 (275 ) - %sharesoutstanding,diluted

Dilutedearnings per $ 1.21 $ 1.19 $ 0.02 2 $ 0.56 $ 0.65 116 share

Adjusteddiluted 1.20 1.20 - - 0.89 0.31 35 earnings pershare

^** Amounts may not totaldue to rounding

Core Performance

* Net interest income of $384.9 million increased $3.1 million sequentially as asset growth and reduced deposit costs more than offset continued fixed-rate repricing and the slight reduction in LIBOR. Net PPP fee accretion of $21.3 million, up $0.9 million sequentially. Net interest margin was 3.01%, down 1 bp sequentially. * Non-interest revenue increased $7.9 million, or 7% sequentially. Adjusted non-interest revenue increased $8.1 million, or 8% sequentially, and decreased $0.8 million, or 1% compared to prior year. Broad-based growth including $4.8 million in capital markets income helped offset normalization of net mortgage revenue, which declined $2.7 million sequentially. * Non-interest expense decreased $3.5 million, or 1% sequentially. Adjusted non-interest expense decreased $1.2 million sequentially. Declines in third-party processing and other services of $5.0 million offset an increase in additional project spend that contributed to the $1.7 million increase in net occupancy, equipment, and software expense. * Pre-provision net revenue of $232.8 million increased $14.4 million sequentially as total revenue increased $10.9 million and non-interest expense decreased $3.5 million. * Reversal of provision for credit losses of $7.9 million from the provision expense associated with strong loan growth being more than offset by a reduction in life of loan loss estimates; allowance for credit losses coverage ratio (to loans) of 1.40%, or 1.42% excluding PPP loans. * Tax expense was $53.9 million, a decrease of $2.9 million sequentially due to lower taxable income and favorable changes in discrete items. Year-to-date effective tax rate of 22.21%.

Capital Ratios



3Q21 2Q21 3Q20

Common equity Tier 1 capital (CET1) ratio 9.63 % ^* 9.75 % 9.30 %

Tier 1 capital ratio 10.83 ^* 11.00 10.57

Total risk-based capital ratio 12.96 ^* 13.25 13.16

Tier 1 leverage ratio 8.82 ^* 8.72 8.48

Tangible common equity ratio 7.68 7.73 7.67

* Ratios are preliminary.

Capital

* Preliminary CET1 ratio declined 12 bps during the quarter to 9.63% as strong core performance helped offset the impact of asset growth and $74.6 million in share repurchases at an average price of $42.00. * Total risk-based capital ratio of 12.96% declined 29 bps from the prior quarter following a reduction in the Allowance for Credit Losses.

Third Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on October 19, 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 $56 billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services through 283 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; pre-provision net revenue; 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 TE revenue; efficiency ratio-TE; income before income taxes; 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 TE 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. Pre-provision net revenue is used by management to evaluate income before income taxes exclusive of (reversal of) provision for credit losses. 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) 3Q21 2Q21 3Q20

Adjusted non-interest revenue

Total non-interest revenue $ 114,955 $ 107,087 $ 114,411

Subtract/add: Investment securities (962 ) - 1,550 (gains) losses, net

Subtract: Fair value increase of - - (260 )private equity investments

Add/subtract: Fair value adjustment on 97 (1,126 ) (796 )non-qualified deferred compensation

Adjusted non-interest revenue $ 114,090 $ 105,961 $ 114,905



Adjusted non-interest expense

Total non-interest expense $ 267,032 $ 270,531 $ 316,655

Add/subtract: Earnout liability 243 (750 ) - adjustment

Subtract: Goodwill impairment - - (44,877 )

Subtract: Restructuring charges (319 ) (415 ) (2,882 )

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

Add/subtract: Fair value adjustment on 97 (1,126 ) (796 )non-qualified deferred compensation

Adjusted non-interest expense $ 267,053 $ 268,240 $ 267,946



Reconciliation of Non-GAAP Financial Measures, continued



(dollars in thousands) 3Q21 2Q21 3Q20

Total adjusted revenue and adjusted tangible efficiency ratio

Adjusted non-interest expense $ 267,053 $ 268,240 $ 267,946

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

Adjusted tangible non-interest expense $ 264,674 $ 265,861 $ 265,306



Net interest income $ 384,917 $ 381,860 $ 376,990

Add: Tax equivalent adjustment 736 791 956

Add: Total non-interest revenue 114,955 107,087 114,411

Total TE revenue 500,608 489,738 492,357

Subtract/add: Investment securities (962 ) - 1,550 (gains) losses, net

Subtract: Fair value increase of - - (260 )private equity investments

Add/subtract: Fair value adjustment on 97 (1,126 ) (796 )non-qualified deferred compensation

Total adjusted revenue $ 499,743 $ 488,612 $ 492,851

Efficiency ratio-TE 53.34 % 55.24 % 64.31 %

Adjusted tangible efficiency ratio 52.96 54.41 53.83

Pre-provision net revenue

Net interest income

$

384,917

$

381,860

$

376,990

Add: Total non-interest revenue

114,955

107,087

114,411

Subtract: Total non-interest expense

267,032

270,531

316,655

Pre-provision net revenue

$

232,840

$

218,416

$

174,746

Pre-provision net revenue

Net interest income $ 384,917 $ 381,860 $ 376,990

Add: Total non-interest revenue 114,955 107,087 114,411

Subtract: Total non-interest expense 267,032 270,531 316,655

Pre-provision net revenue $ 232,840 $ 218,416 $ 174,746

Adjusted return on average assetsNet income

$

186,773

$

186,200

$

91,574

Subtract/add: Earnout liability adjustment

(243

)

750

-

Add: Goodwill impairment

-

-

44,877

Add: Restructuring charges

319

415

2,882

Add: Loss on early extinguishment of debt, net

-

-

154

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

(962

)

-

1,550

Subtract: Fair value increase of private equity investments

-

-

(260

)

Add/subtract: Tax effect of adjustments (1)

164

(105

)

(1,122

)

Adjusted net income

$

186,051

$

187,260

$

139,655

Net income annualized

$

741,002

$

746,846

$

364,305

Adjusted net income annualized

$

738,137

$

751,098

$

555,584

Total average assets

$

55,326,260

$

55,017,771

$

53,138,334

Return on average assets

1.34

%

1.36

%

0.69

%

Adjusted return on average assets

1.33

1.37

1.05

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

Net income available to common shareholders

$

178,482

$

177,909

$

83,283

Subtract/add: Earnout liability adjustment

(243

)

750

-

Add: Goodwill Impairment

-

-

44,877

Add: Restructuring charges

319

415

2,882

Add: Loss on early extinguishment of debt, net

-

-

154

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

(962

)

-

1,550

Subtract: Fair value increase of private equity investments

-

-

(260

)

Add/subtract: Tax effect of adjustments (1)

164

(105

)

(1,122

)

Adjusted net income available to common shareholders

$

177,760

$

178,969

$

131,364

Weighted average common shares outstanding, diluted

147,701

149,747

147,976

Diluted earnings per share

$

1.21

$

1.19

$

0.56

Adjusted diluted earnings per share

1.20

1.20

0.89

Adjusted return on average assetsNet income $ 186,773 $ 186,200 $ 91,574

Subtract/add: Earnout (243 ) 750 - liability adjustment

Add: Goodwill impairment - - 44,877

Add: Restructuring charges 319 415 2,882

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

Subtract/add: Investment (962 ) - 1,550 securities (gains) losses, net

Subtract: Fair value increase - - (260 )of private equity investments

Add/subtract: Tax effect of 164 (105 ) (1,122 )adjustments ^(1)

Adjusted net income $ 186,051 $ 187,260 $ 139,655

Net income annualized $ 741,002 $ 746,846 $ 364,305

Adjusted net income annualized $ 738,137 $ 751,098 $ 555,584

Total average assets $ 55,326,260 $ 55,017,771 $ 53,138,334

Return on average assets 1.34 % 1.36 % 0.69 %

Adjusted return on average 1.33 1.37 1.05 assets





Adjusted net income availableto common shareholders and adjusted diluted earnings pershare

Net income available to common $ 178,482 $ 177,909 $ 83,283 shareholders

Subtract/add: Earnout (243 ) 750 - liability adjustment

Add: Goodwill Impairment - - 44,877

Add: Restructuring charges 319 415 2,882

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

Subtract/add: Investment (962 ) - 1,550 securities (gains) losses, net

Subtract: Fair value increase - - (260 )of private equity investments

Add/subtract: Tax effect of 164 (105 ) (1,122 )adjustments ^(1)

Adjusted net income available $ 177,760 $ 178,969 $ 131,364 to common shareholders

Weighted average common shares 147,701 149,747 147,976 outstanding, diluted

Diluted earnings per share $ 1.21 $ 1.19 $ 0.56

Adjusted diluted earnings per 1.20 1.20 0.89 share

Reconciliation of Non-GAAP Financial Measures, continued

(dollars in thousands)

3Q21

2Q21

3Q20

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

$

178,482

$

177,909

$

83,283

Subtract/add: Earnout liability adjustment

(243

)

750

-

Add: Goodwill impairment

-

-

44,877

Add: Restructuring charges

319

415

2,882

Add: Loss on early extinguishment of debt, net

-

-

154

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

(962

)

-

1,550

Subtract: Fair value increase of private equity investments

-

-

(260

)

Add/subtract: Tax effect of adjustments (1)

164

(105

)

(1,122

)

Adjusted net income available to common shareholders

$

177,760

$

178,969

$

131,364

Adjusted net income available to common shareholders annualized

$

705,243

$

717,843

$

522,600

Add: Amortization of intangibles, annualized net of tax

7,050

7,128

7,782

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

$

712,293

$

724,971

$

530,382

Net income available to common shareholders annualized

$

708,108

$

713,591

$

331,322

Add: Amortization of intangibles, annualized net of tax

7,050

7,128

7,782

Net income available to common shareholders excluding amortization of intangibles annualized

$

715,158

$

720,719

$

339,104

Total average shareholders' equity less preferred stock

$

4,734,754

$

4,632,568

$

4,553,159

Subtract: Goodwill

(452,390

)

(452,390

)

(497,267

)

Subtract: Other intangible assets, net

(39,109

)

(41,399

)

(49,075

)

Total average tangible shareholders' equity less preferred stock

$

4,243,255

$

4,138,779

$

4,006,817

Return on average common equity

14.96

%

15.40

%

7.28

%

Adjusted return on average common equity

14.90

15.50

11.48

Return on average tangible common equity

16.85

17.41

8.46

Adjusted return on average tangible common equity

16.79

17.52

13.24

Reconciliation of Non-GAAP Financial Measures, continued



(dollars in thousands) 3Q21 2Q21 3Q20



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

Net income available to common $ 178,482 $ 177,909 $ 83,283 shareholders

Subtract/add: Earnout liability (243 ) 750 - adjustment

Add: Goodwill impairment - - 44,877

Add: Restructuring charges 319 415 2,882

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

Subtract/add: Investment (962 ) - 1,550 securities (gains) losses, net

Subtract: Fair value increase of - - (260 )private equity investments

Add/subtract: Tax effect of 164 (105 ) (1,122 )adjustments ^(1)

Adjusted net income available to $ 177,760 $ 178,969 $ 131,364 common shareholders



Adjusted net income available to $ 705,243 $ 717,843 $ 522,600 common shareholders annualized

Add: Amortization of intangibles, 7,050 7,128 7,782 annualized net of tax

Adjusted net income available tocommon shareholders excluding $ 712,293 $ 724,971 $ 530,382 amortization of intangiblesannualized



Net income available to common $ 708,108 $ 713,591 $ 331,322 shareholders annualized

Add: Amortization of intangibles, 7,050 7,128 7,782 annualized net of tax

Net income available to commonshareholders excluding $ 715,158 $ 720,719 $ 339,104 amortization of intangiblesannualized



Total average shareholders' $ 4,734,754 $ 4,632,568 $ 4,553,159 equity less preferred stock

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

Subtract: Other intangible (39,109 ) (41,399 ) (49,075 )assets, net

Total average tangibleshareholders' equity less $ 4,243,255 $ 4,138,779 $ 4,006,817 preferred stock

Return on average common equity 14.96 % 15.40 % 7.28 %

Adjusted return on average common 14.90 15.50 11.48 equity

Return on average tangible common 16.85 17.41 8.46 equity

Adjusted return on average 16.79 17.52 13.24 tangible common equity

Reconciliation of Non-GAAP Financial Measures, continued

(dollars in thousands)

September 30, 2021

June 30, 2021

September 30, 2020

Tangible common equity ratio

Total assets

$

55,509,129

$

54,938,659

$

53,040,538

Subtract: Goodwill

(452,390

)

(452,390

)

(452,390

)

Subtract: Other intangible assets, net

(37,975

)

(40,354

)

(47,752

)

Tangible assets

$

55,018,764

$

54,445,915

$

52,540,396

Total shareholders' equity

$

5,252,802

$

5,237,714

$

5,064,542

Subtract: Goodwill

(452,390

)

(452,390

)

(452,390

)

Subtract: Other intangible assets, net

(37,975

)

(40,354

)

(47,752

)

Subtract: Preferred Stock, no par value

(537,145

)

(537,145

)

(537,145

)

Tangible common equity

$

4,225,292

$

4,207,825

$

4,027,255

Total shareholders' equity to total assets ratio

9.46

%

9.53

%

9.55

%

Tangible common equity ratio

7.68

7.73

7.67

(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) September 30, June 30, September 30, 2021 2021 2020



Tangible common equity ratio

Total assets $ 55,509,129 $ 54,938,659 $ 53,040,538

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

Subtract: Other intangible (37,975 ) (40,354 ) (47,752 )assets, net

Tangible assets $ 55,018,764 $ 54,445,915 $ 52,540,396



Total shareholders' equity $ 5,252,802 $ 5,237,714 $ 5,064,542

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

Subtract: Other intangible (37,975 ) (40,354 ) (47,752 )assets, net

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

Tangible common equity $ 4,225,292 $ 4,207,825 $ 4,027,255

Total shareholders' equity to 9.46 % 9.53 % 9.55 %total assets ratio

Tangible common equity ratio 7.68 7.73 7.67



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

INCOME STATEMENT DATA

(Unaudited)

(Dollars in thousands, except per share data)

Nine Months Ended

2021

2020

'21 vs '20

% Change

Interest income

$

1,235,064

$

1,371,016

(10

)%

Interest expense

94,430

244,200

(61

)

Net interest income

1,140,634

1,126,816

1

(Reversal of) provision for credit losses

(51,041

)

343,956

nm

Net interest income after provision for credit losses

1,191,675

782,860

52

Non-interest revenue:

Service charges on deposit accounts

64,089

54,069

19

Fiduciary and asset management fees

56,545

46,009

23

Card fees

38,538

30,959

24

Brokerage revenue

41,644

32,987

26

Mortgage banking income

47,312

66,987

(29

)

Capital markets income

18,929

22,984

(18

)

Income from bank-owned life insurance

22,851

21,572

6

Investment securities (losses) gains, net

(1,028

)

76,594

nm

Other non-interest revenue

44,117

39,591

11

Total non-interest revenue

332,997

391,752

(15

)

Non-interest expense:

Salaries and other personnel expense

482,408

464,268

4

Net occupancy, equipment, and software expense

126,442

125,475

1

Third-party processing and other services

63,897

67,193

(5

)

Professional fees

23,771

39,358

(40

)

FDIC insurance and other regulatory fees

16,338

18,922

(14

)

Other operating expenses

91,841

161,860

(43

)

Total non-interest expense

804,697

877,076

(8

)

Income before income taxes

719,975

297,536

142

Income tax expense

159,910

74,250

115

Net income

560,065

223,286

151

Less: Preferred stock dividends

24,872

24,872

-

Net income available to common shareholders

$

535,193

$

198,414

170

%

Net income per common share, basic

$

3.63

$

1.35

169

%

Net income per common share, diluted

3.59

1.34

168

Cash dividends declared per common share

0.99

0.99

-

Return on average assets *

1.37

%

0.58

%

79

bps

Return on average common equity *

15.37

5.87

950

Weighted average common shares outstanding, basic

147,622

147,304

0

%

Weighted average common shares outstanding, diluted

149,069

148,037

1

nm - not meaningful

bps - basis points

* - ratios are annualized

INCOME STATEMENT DATA

(Unaudited)



(Dollars in thousands, except per share Nine Months Endeddata)

'21 vs '20 2021 2020 % Change



Interest income $ 1,235,064 $ 1,371,016 (10 )%

Interest expense 94,430 244,200 (61 )



Net interest income 1,140,634 1,126,816 1

(Reversal of) provision for credit (51,041 ) 343,956 nm losses



Net interest income after provision for 1,191,675 782,860 52 credit losses



Non-interest revenue:

Service charges on deposit accounts 64,089 54,069 19

Fiduciary and asset management fees 56,545 46,009 23

Card fees 38,538 30,959 24

Brokerage revenue 41,644 32,987 26

Mortgage banking income 47,312 66,987 (29 )

Capital markets income 18,929 22,984 (18 )

Income from bank-owned life insurance 22,851 21,572 6

Investment securities (losses) gains, (1,028 ) 76,594 nm net

Other non-interest revenue 44,117 39,591 11



Total non-interest revenue 332,997 391,752 (15 )



Non-interest expense:

Salaries and other personnel expense 482,408 464,268 4

Net occupancy, equipment, and software 126,442 125,475 1 expense

Third-party processing and other 63,897 67,193 (5 )services

Professional fees 23,771 39,358 (40 )

FDIC insurance and other regulatory fees 16,338 18,922 (14 )

Other operating expenses 91,841 161,860 (43 )



Total non-interest expense 804,697 877,076 (8 )



Income before income taxes 719,975 297,536 142

Income tax expense 159,910 74,250 115



Net income 560,065 223,286 151



Less: Preferred stock dividends 24,872 24,872 -



Net income available to common $ 535,193 $ 198,414 170 %shareholders



Net income per common share, basic $ 3.63 $ 1.35 169 %



Net income per common share, diluted 3.59 1.34 168



Cash dividends declared per common share 0.99 0.99 -



Return on average assets * 1.37 % 0.58 % 79 bps

Return on average common equity * 15.37 5.87 950



Weighted average common shares 147,622 147,304 0 %outstanding, basic

Weighted average common shares 149,069 148,037 1 outstanding, diluted



nm - not meaningful

bps - basis points

* - ratios are annualized

SynovusINCOME STATEMENT DATA

(Unaudited)

(Dollars in thousands, except per share data)

2021

2020

Third Quarter

Third Quarter

Second Quarter

First Quarter

Fourth Quarter

Third Quarter

'21 vs '20

% Change

Interest income

$

412,504

412,743

409,817

433,479

435,550

(5

)%

Interest expense

27,587

30,883

35,960

47,547

58,560

(53

)

Net interest income

384,917

381,860

373,857

385,932

376,990

2

(Reversal of) provision for credit losses

(7,868

)

(24,598

)

(18,575

)

11,066

43,383

nm

Net interest income after provision for credit losses

392,785

406,458

392,432

374,866

333,607

18

Non-interest revenue:

Service charges on deposit accounts

22,641

21,414

20,033

19,063

17,813

27

Fiduciary and asset management fees

19,786

18,805

17,954

17,242

15,885

25

Card fees

13,238

13,304

11,996

11,743

10,823

22

Brokerage revenue

14,745

13,926

12,974

11,794

10,604

39

Mortgage banking income

11,155

13,842

22,315

24,426

31,229

(64

)

Capital markets income

8,089

3,335

7,505

4,352

5,690

42

Income from bank-owned life insurance

6,820

7,188

8,843

9,725

7,778

(12

)

Investment securities gains (losses), net

962

-

(1,990

)

2,337

(1,550

)

nm

Other non-interest revenue

17,519

15,273

11,326

14,079

16,139

9

Total non-interest revenue

114,955

107,087

110,956

114,761

114,411

-

Non-interest expense:

Salaries and other personnel expense

160,364

160,567

161,477

153,946

154,994

3

Net occupancy, equipment, and software expense

43,483

41,825

41,134

44,183

41,554

5

Third-party processing and other services

19,446

24,419

20,032

20,799

21,827

(11

)

Professional fees

6,739

7,947

9,084

17,541

13,377

(50

)

FDIC insurance and other regulatory fees

5,212

5,547

5,579

6,288

6,793

(23

)

Other operating expenses

31,788

30,226

29,828

59,741

78,110

(59

)

Total non-interest expense

267,032

270,531

267,134

302,498

316,655

(16

)

Income before income taxes

240,708

243,014

236,254

187,129

131,363

83

Income tax expense

53,935

56,814

49,161

36,720

39,789

36

Net income

186,773

186,200

187,093

150,409

91,574

104

Less: Preferred stock dividends

8,291

8,291

8,291

8,291

8,291

-

Net income available to common shareholders

$

178,482

177,909

178,802

142,118

83,283

114

%

Net income per common share, basic

$

1.22

1.20

1.20

0.96

0.57

114

%

Net income per common share, diluted

1.21

1.19

1.19

0.96

0.56

116

Cash dividends declared per common share

0.33

0.33

0.33

0.33

0.33

-

Return on average assets *

1.34

%

1.36

1.40

1.11

0.69

65

bps

Return on average common equity *

14.96

15.40

15.77

12.31

7.28

768

0.31

Weighted average common shares outstanding, basic

146,308

148,113

148,467

147,744

147,314

(1

)%

Weighted average common shares outstanding, diluted

147,701

149,747

149,780

148,725

147,976

-

nm - not meaningful

bps - basis points

* - ratios are annualized

Synovus



INCOMESTATEMENT DATA

(Unaudited)



(Dollars inthousands, 2021 2020 Thirdexcept per Quartershare data)



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



Interest $ 412,504 412,743 409,817 433,479 435,550 (5 )%income

Interest 27,587 30,883 35,960 47,547 58,560 (53 )expense



Net interest 384,917 381,860 373,857 385,932 376,990 2 income

(Reversalof)provision (7,868 ) (24,598 ) (18,575 ) 11,066 43,383 nm for creditlosses



Net interestincome afterprovision 392,785 406,458 392,432 374,866 333,607 18 for creditlosses



Non-interest revenue:

Servicecharges on 22,641 21,414 20,033 19,063 17,813 27 depositaccounts

Fiduciaryand asset 19,786 18,805 17,954 17,242 15,885 25 managementfees

Card fees 13,238 13,304 11,996 11,743 10,823 22

Brokerage 14,745 13,926 12,974 11,794 10,604 39 revenue

Mortgagebanking 11,155 13,842 22,315 24,426 31,229 (64 )income

Capitalmarkets 8,089 3,335 7,505 4,352 5,690 42 income

Income frombank-owned 6,820 7,188 8,843 9,725 7,778 (12 )lifeinsurance

Investmentsecuritiesgains 962 - (1,990 ) 2,337 (1,550 ) nm (losses),net

Othernon-interest 17,519 15,273 11,326 14,079 16,139 9 revenue



Totalnon-interest 114,955 107,087 110,956 114,761 114,411 - revenue



Non-interest expense:

Salaries andother 160,364 160,567 161,477 153,946 154,994 3 personnelexpense

Netoccupancy,equipment, 43,483 41,825 41,134 44,183 41,554 5 and softwareexpense

Third-partyprocessing 19,446 24,419 20,032 20,799 21,827 (11 )and otherservices

Professional 6,739 7,947 9,084 17,541 13,377 (50 )fees

FDICinsuranceand other 5,212 5,547 5,579 6,288 6,793 (23 )regulatoryfees

Otheroperating 31,788 30,226 29,828 59,741 78,110 (59 )expenses



Totalnon-interest 267,032 270,531 267,134 302,498 316,655 (16 )expense



Incomebefore 240,708 243,014 236,254 187,129 131,363 83 income taxes

Income tax 53,935 56,814 49,161 36,720 39,789 36 expense



Net income 186,773 186,200 187,093 150,409 91,574 104



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



Net incomeavailable to $ 178,482 177,909 178,802 142,118 83,283 114 %commonshareholders



Net incomeper common $ 1.22 1.20 1.20 0.96 0.57 114 %share, basic



Net incomeper common 1.21 1.19 1.19 0.96 0.56 116 share,diluted



Cashdividends 0.33 0.33 0.33 0.33 0.33 - declared percommon share



Return onaverage 1.34 % 1.36 1.40 1.11 0.69 65 bpsassets *

Return onaverage 14.96 15.40 15.77 12.31 7.28 768 commonequity *

0.31

Weightedaveragecommon 146,308 148,113 148,467 147,744 147,314 (1 )%sharesoutstanding,basic

Weightedaveragecommon 147,701 149,747 149,780 148,725 147,976 - sharesoutstanding,diluted



nm - not meaningful

bps - basis points

* - ratiosare annualized

Synovus

BALANCE SHEET DATA

September 30, 2021

December 31, 2020

September 30, 2020

(Unaudited)

(In thousands, except share data)

ASSETS

Cash and due from banks

$

483,035

$

531,579

$

578,026

Interest-bearing funds with Federal Reserve Bank

2,103,497

3,586,565

1,266,313

Interest earning deposits with banks

23,261

20,944

20,929

Federal funds sold and securities purchased under resale agreements

77,627

113,829

120,095

Cash, cash equivalents, and restricted cash

2,687,420

4,252,917

1,985,363

Investment securities available for sale, at fair value

10,481,071

7,962,438

7,566,525

Loans held for sale ($152,258, $216,647, and $285,899 measured at fair value, respectively)

550,948

760,123

745,160

Loans, net of deferred fees and costs

38,341,030

38,252,984

39,549,847

Allowance for loan losses

(492,243

)

(605,736

)

(603,800

)

Loans, net

37,848,787

37,647,248

38,946,047

Cash surrender value of bank-owned life insurance

1,065,256

1,049,373

1,044,046

Premises, equipment, and software, net

441,605

463,959

471,208

Goodwill

452,390

452,390

452,390

Other intangible assets, net

37,975

45,112

47,752

Other assets

1,943,677

1,760,599

1,782,047

Total assets

$

55,509,129

$

54,394,159

$

53,040,538

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Deposits:

Non-interest-bearing deposits

$

15,787,882

$

13,477,854

$

13,075,081

Interest-bearing deposits

31,900,537

33,213,717

31,590,823

Total deposits

47,688,419

46,691,571

44,665,904

Federal funds purchased and securities sold under repurchase agreements

262,548

227,922

202,344

Other short-term borrowings

-

7,717

400,000

Long-term debt

1,203,761

1,202,494

1,628,385

Other liabilities

1,101,599

1,103,121

1,079,363

Total liabilities

50,256,327

49,232,825

47,975,996

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 169,170,589, 168,132,522, and 167,410,950; outstanding 145,483,994, 148,039,495, and 147,317,923

169,171

168,133

167,411

Additional paid-in capital

3,883,289

3,851,208

3,832,142

Treasury stock, at cost - 23,686,595, 20,093,027, and 20,093,027 shares

(898,707

)

(731,806

)

(731,806

)

Accumulated other comprehensive (loss) income, net

(5,462

)

158,635

174,914

Retained earnings

1,567,366

1,178,019

1,084,736

Total shareholders' equity

5,252,802

5,161,334

5,064,542

Total liabilities and shareholders' equity

$

55,509,129

$

54,394,159

$

53,040,538

Synovus



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

(Unaudited)

(In thousands, except share data)



ASSETS

Cash and due from banks $ 483,035 $ 531,579 $ 578,026

Interest-bearing funds with 2,103,497 3,586,565 1,266,313 Federal Reserve Bank

Interest earning deposits 23,261 20,944 20,929 with banks

Federal funds sold andsecurities purchased under 77,627 113,829 120,095 resale agreements

Cash, cash equivalents, and 2,687,420 4,252,917 1,985,363 restricted cash



Investment securitiesavailable for sale, at fair 10,481,071 7,962,438 7,566,525 value

Loans held for sale($152,258, $216,647, and 550,948 760,123 745,160 $285,899 measured at fairvalue, respectively)



Loans, net of deferred fees 38,341,030 38,252,984 39,549,847 and costs

Allowance for loan losses (492,243 ) (605,736 ) (603,800 )

Loans, net 37,848,787 37,647,248 38,946,047



Cash surrender value of 1,065,256 1,049,373 1,044,046 bank-owned life insurance

Premises, equipment, and 441,605 463,959 471,208 software, net

Goodwill 452,390 452,390 452,390

Other intangible assets, net 37,975 45,112 47,752

Other assets 1,943,677 1,760,599 1,782,047

Total assets $ 55,509,129 $ 54,394,159 $ 53,040,538



LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Deposits:

Non-interest-bearing $ 15,787,882 $ 13,477,854 $ 13,075,081 deposits

Interest-bearing deposits 31,900,537 33,213,717 31,590,823



Total deposits 47,688,419 46,691,571 44,665,904



Federal funds purchased andsecurities sold under 262,548 227,922 202,344 repurchase agreements

Other short-term borrowings - 7,717 400,000

Long-term debt 1,203,761 1,202,494 1,628,385

Other liabilities 1,101,599 1,103,121 1,079,363

Total liabilities 50,256,327 49,232,825 47,975,996



Shareholders' equity:

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

Common stock - $1.00 parvalue. Authorized342,857,143 shares; issued169,170,589, 168,132,522, 169,171 168,133 167,411 and 167,410,950; outstanding145,483,994, 148,039,495,and 147,317,923

Additional paid-in capital 3,883,289 3,851,208 3,832,142

Treasury stock, at cost -23,686,595, 20,093,027, and (898,707 ) (731,806 ) (731,806 )20,093,027 shares

Accumulated othercomprehensive (loss) income, (5,462 ) 158,635 174,914 net

Retained earnings 1,567,366 1,178,019 1,084,736

Total shareholders' equity 5,252,802 5,161,334 5,064,542

Total liabilities and $ 55,509,129 $ 54,394,159 $ 53,040,538 shareholders' equity

Synovus

AVERAGE BALANCES AND YIELDS/RATES (1)

(Unaudited)

2021

2020

(Dollars in thousands)

Third

Second

First

Fourth

Third

Quarter

Quarter

Quarter

Quarter

Quarter

Interest Earning Assets

Investment securities (2) (4)

$

9,876,651

9,184,691

8,437,563

7,493,822

7,227,400

Yield

1.45

%

1.45

1.40

2.07

2.39

Trading account assets (5)

$

5,192

2,831

3,063

8,496

5,391

Yield

1.15

%

1.15

2.81

1.03

1.69

Commercial loans (3) (4)

$

28,891,164

29,849,029

29,844,491

30,363,102

30,730,135

Yield

3.91

%

3.86

3.95

3.96

3.80

Consumer loans (3)

$

8,642,969

8,647,448

8,367,776

8,521,449

9,032,437

Yield

3.93

%

3.94

3.98

4.00

4.08

Allowance for loan losses

$

(514,828

)

(561,242

)

(599,872

)

(595,547

)

(591,098

)

Loans, net (3)

$

37,019,305

37,935,235

37,612,395

38,289,004

39,171,474

Yield

3.97

%

3.93

4.02

4.03

3.92

Mortgage loans held for sale

$

196,032

242,940

246,962

309,278

244,952

Yield

2.88

%

3.06

2.68

2.74

2.92

Other loans held for sale

$

527,736

615,301

660,753

544,301

493,940

Yield

3.06

%

3.05

2.91

2.81

3.61

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

$

3,271,501

2,705,819

2,838,063

2,716,645

1,265,880

Yield

0.15

%

0.11

0.10

0.10

0.11

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

$

159,741

159,340

157,657

162,537

200,923

Yield

1.26

%

2.01

1.69

2.64

2.73

Total interest earning assets

$

51,056,158

50,846,157

49,956,456

49,524,083

48,609,960

Yield

3.22

%

3.26

3.32

3.49

3.58

Interest-Bearing Liabilities

Interest-bearing demand deposits

$

8,463,325

8,601,262

8,570,753

8,531,415

7,789,095

Rate

0.10

%

0.11

0.14

0.16

0.19

Money Market accounts

$

15,597,723

15,476,262

15,348,916

14,411,860

13,272,972

Rate

0.15

%

0.19

0.23

0.26

0.36

Savings deposits

$

1,377,089

1,333,297

1,219,288

1,147,667

1,114,956

Rate

0.02

%

0.02

0.02

0.01

0.02

Time deposits under $100,000

$

993,284

1,077,931

1,161,306

1,239,592

1,379,923

Rate

0.33

%

0.41

0.56

0.74

1.03

Time deposits over $100,000

$

2,430,744

2,714,451

2,993,996

3,302,959

3,863,821

Rate

0.45

%

0.56

0.74

1.03

1.44

Other brokered deposits

$

1,862,346

1,901,097

1,950,582

1,978,393

1,912,114

Rate

0.21

%

0.19

0.20

0.23

0.23

Brokered time deposits

$

996,777

1,156,510

1,418,751

1,795,982

2,232,940

Rate

1.27

%

1.35

1.50

1.60

1.59

Total interest-bearing deposits

$

31,721,288

32,260,810

32,663,592

32,407,868

31,565,821

Rate

0.20

%

0.24

0.31

0.39

0.54

Federal funds purchased and securities sold under repurchase agreements

$

202,525

204,053

209,448

174,316

180,342

Rate

0.07

%

0.07

0.07

0.07

0.09

Other short-term borrowings

$

-

-

-

-

46,739

Rate

-

%

-

-

-

1.12

Long-term debt

$

1,203,500

1,203,038

1,202,613

1,552,791

2,234,665

Rate

3.81

%

3.82

3.63

3.96

2.71

Total interest-bearing liabilities

$

33,127,313

33,667,901

34,075,653

34,134,975

34,027,567

Rate

0.33

%

0.36

0.42

0.55

0.68

Non-interest-bearing demand deposits

$

15,755,929

15,088,836

13,791,286

13,566,112

12,773,676

Cost of funds

0.22

%

0.25

0.30

0.40

0.50

Effective cost of funds(6)

0.21

%

0.24

0.28

0.37

0.48

Net interest margin

3.01

%

3.02

3.04

3.12

3.10

Taxable equivalent adjustment (4)

$

736

791

774

821

956

(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)

Third Second First Fourth Third

Quarter Quarter Quarter Quarter Quarter

Interest Earning Assets

Investment $ 9,876,651 9,184,691 8,437,563 7,493,822 7,227,400 securities^ (2) (4)

Yield 1.45 % 1.45 1.40 2.07 2.39

Trading account $ 5,192 2,831 3,063 8,496 5,391 assets ^(5)

Yield 1.15 % 1.15 2.81 1.03 1.69

Commercial loans ^ $ 28,891,164 29,849,029 29,844,491 30,363,102 30,730,135 (3) (4)

Yield 3.91 % 3.86 3.95 3.96 3.80

Consumer loans ^(3) $ 8,642,969 8,647,448 8,367,776 8,521,449 9,032,437

Yield 3.93 % 3.94 3.98 4.00 4.08

Allowance for loan $ (514,828 ) (561,242 ) (599,872 ) (595,547 ) (591,098 )losses

Loans, net ^(3) $ 37,019,305 37,935,235 37,612,395 38,289,004 39,171,474

Yield 3.97 % 3.93 4.02 4.03 3.92

Mortgage loans held $ 196,032 242,940 246,962 309,278 244,952 for sale

Yield 2.88 % 3.06 2.68 2.74 2.92

Other loans held for $ 527,736 615,301 660,753 544,301 493,940 sale

Yield 3.06 % 3.05 2.91 2.81 3.61

Federal funds sold,due from FederalReserve Bank, and $ 3,271,501 2,705,819 2,838,063 2,716,645 1,265,880 other short-terminvestments

Yield 0.15 % 0.11 0.10 0.10 0.11

Federal Home LoanBank and Federal $ 159,741 159,340 157,657 162,537 200,923 Reserve Bank Stock ^(5)

Yield 1.26 % 2.01 1.69 2.64 2.73

Total interest $ 51,056,158 50,846,157 49,956,456 49,524,083 48,609,960 earning assets

Yield 3.22 % 3.26 3.32 3.49 3.58

Interest-Bearing Liabilities

Interest-bearing $ 8,463,325 8,601,262 8,570,753 8,531,415 7,789,095 demand deposits

Rate 0.10 % 0.11 0.14 0.16 0.19

Money Market $ 15,597,723 15,476,262 15,348,916 14,411,860 13,272,972 accounts

Rate 0.15 % 0.19 0.23 0.26 0.36

Savings deposits $ 1,377,089 1,333,297 1,219,288 1,147,667 1,114,956

Rate 0.02 % 0.02 0.02 0.01 0.02

Time deposits under $ 993,284 1,077,931 1,161,306 1,239,592 1,379,923 $100,000

Rate 0.33 % 0.41 0.56 0.74 1.03

Time deposits over $ 2,430,744 2,714,451 2,993,996 3,302,959 3,863,821 $100,000

Rate 0.45 % 0.56 0.74 1.03 1.44

Other brokered $ 1,862,346 1,901,097 1,950,582 1,978,393 1,912,114 deposits

Rate 0.21 % 0.19 0.20 0.23 0.23

Brokered time $ 996,777 1,156,510 1,418,751 1,795,982 2,232,940 deposits

Rate 1.27 % 1.35 1.50 1.60 1.59

Totalinterest-bearing $ 31,721,288 32,260,810 32,663,592 32,407,868 31,565,821 deposits

Rate 0.20 % 0.24 0.31 0.39 0.54

Federal fundspurchased andsecurities sold $ 202,525 204,053 209,448 174,316 180,342 under repurchaseagreements

Rate 0.07 % 0.07 0.07 0.07 0.09

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

Rate - % - - - 1.12

Long-term debt $ 1,203,500 1,203,038 1,202,613 1,552,791 2,234,665

Rate 3.81 % 3.82 3.63 3.96 2.71

Totalinterest-bearing $ 33,127,313 33,667,901 34,075,653 34,134,975 34,027,567 liabilities

Rate 0.33 % 0.36 0.42 0.55 0.68

Non-interest-bearing $ 15,755,929 15,088,836 13,791,286 13,566,112 12,773,676 demand deposits

Cost of funds 0.22 % 0.25 0.30 0.40 0.50

Effective cost of 0.21 % 0.24 0.28 0.37 0.48 funds^(6)

Net interest margin 3.01 % 3.02 3.04 3.12 3.10

Taxable equivalent $ 736 791 774 821 956 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 areincluded.

^(4) Reflects taxable-equivalent adjustments, using the statutory federalincome tax rate of 21%, in adjusting interest on tax-exempt loans andinvestment 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

September 30, 2021

June 30, 2021

% Change

September 30, 2020

% Change

Commercial, Financial, and Agricultural

$

11,771,037

$

12,085,534

(3

)%

$

12,931,095

(9

)%

Owner-Occupied

7,163,751

7,064,599

1

7,192,543

-

Total Commercial & Industrial

18,934,788

19,150,133

(1

)

20,123,638

(6

)

Multi-Family

2,197,139

2,086,641

5

2,359,112

(7

)

Hotels

1,441,414

1,411,443

2

1,407,238

2

Office Buildings

2,341,316

2,340,378

-

2,260,240

4

Shopping Centers

1,570,020

1,645,275

(5

)

1,736,210

(10

)

Warehouses

687,496

657,699

5

728,446

(6

)

Other Investment Property

1,211,078

1,076,577

12

942,962

28

Total Investment Properties

9,448,463

9,218,013

2

9,434,208

-

1-4 Family Construction

191,906

174,009

10

180,277

6

1-4 Family Investment Mortgage

421,968

462,335

(9

)

474,473

(11

)

Total 1-4 Family Properties

613,874

636,344

(4

)

654,750

(6

)

Commercial Development

103,512

120,683

(14

)

111,403

(7

)

Residential Development

186,033

164,950

13

259,617

(28

)

Land Acquisition

188,378

221,061

(15

)

276,085

(32

)

Land and Development

477,923

506,694

(6

)

647,105

(26

)

Total Commercial Real Estate

10,540,260

10,361,051

2

10,736,063

(2

)

Consumer Mortgages

5,108,499

5,200,762

(2

)

5,664,686

(10

)

Home Equity Lines

1,308,254

1,358,211

(4

)

1,629,482

(20

)

Credit Cards

293,026

285,508

3

264,829

11

Other Consumer Loans

2,156,203

1,880,353

15

1,131,149

91

Total Consumer

8,865,982

8,724,834

2

8,690,146

2

Total

$

38,341,030

$

38,236,018

-

%

$

39,549,847

(3

)%

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

September 30, 2021

June 30, 2021

% Change

September 30, 2020

% Change

Commercial, Financial, and Agricultural

$

77,349

$

70,943

9

%

$

95,365

(19

)%

Owner-Occupied

13,134

13,155

-

20,261

(35

)

Total Commercial & Industrial

90,483

84,098

8

115,626

(22

)

Multi-Family

2,396

2,407

-

157

nm

Office Buildings

2,488

1,618

54

27,608

(91

)

Shopping Centers

932

124

652

257

263

Warehouses

302

218

39

-

nm

Other Investment Property

624

407

53

238

162

Total Investment Properties

6,742

4,774

41

28,260

(76

)

1-4 Family Construction

522

548

(5

)

1,556

(66

)

1-4 Family Investment Mortgage

2,364

1,927

23

1,815

30

Total 1-4 Family Properties

2,886

2,475

17

3,371

(14

)

Commercial Development

463

560

(17

)

833

(44

)

Residential Development

449

451

-

648

(31

)

Land Acquisition

1,024

1,029

-

910

13

Land and Development

1,936

2,040

(5

)

2,391

(19

)

Total Commercial Real Estate

11,564

9,289

24

34,022

(66

)

Consumer Mortgages

37,541

51,376

(27

)

7,433

405

Home Equity Lines

8,688

8,938

(3

)

10,297

(16

)

Other Consumer Loans

7,189

7,327

(2

)

1,459

393

Total Consumer

53,418

67,641

(21

)

19,189

178

Total

$

155,465

$

161,028

(3

)%

$

168,837

(8

)%

Synovus

LOANSOUTSTANDING BY TYPE

(Unaudited)

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



Loan Type September 30, June 30, 2021 % September 30, % 2021 Change 2020 Change

Commercial,Financial, and $ 11,771,037 $ 12,085,534 (3 )% $ 12,931,095 (9 )%Agricultural

Owner-Occupied 7,163,751 7,064,599 1 7,192,543 -

TotalCommercial & 18,934,788 19,150,133 (1 ) 20,123,638 (6 )Industrial

Multi-Family 2,197,139 2,086,641 5 2,359,112 (7 )

Hotels 1,441,414 1,411,443 2 1,407,238 2

Office 2,341,316 2,340,378 - 2,260,240 4 Buildings

Shopping 1,570,020 1,645,275 (5 ) 1,736,210 (10 )Centers

Warehouses 687,496 657,699 5 728,446 (6 )

OtherInvestment 1,211,078 1,076,577 12 942,962 28 Property

TotalInvestment 9,448,463 9,218,013 2 9,434,208 - Properties

1-4 Family 191,906 174,009 10 180,277 6 Construction

1-4 FamilyInvestment 421,968 462,335 (9 ) 474,473 (11 )Mortgage

Total 1-4Family 613,874 636,344 (4 ) 654,750 (6 )Properties

Commercial 103,512 120,683 (14 ) 111,403 (7 )Development

Residential 186,033 164,950 13 259,617 (28 )Development

Land 188,378 221,061 (15 ) 276,085 (32 )Acquisition

Land and 477,923 506,694 (6 ) 647,105 (26 )Development

TotalCommercial 10,540,260 10,361,051 2 10,736,063 (2 )Real Estate

Consumer 5,108,499 5,200,762 (2 ) 5,664,686 (10 )Mortgages

Home Equity 1,308,254 1,358,211 (4 ) 1,629,482 (20 )Lines

Credit Cards 293,026 285,508 3 264,829 11

Other Consumer 2,156,203 1,880,353 15 1,131,149 91 Loans

Total Consumer 8,865,982 8,724,834 2 8,690,146 2

Total $ 38,341,030 $ 38,236,018 - % $ 39,549,847 (3 )%



NON-PERFORMING LOANS COMPOSITION

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



Loan Type September 30, June 30, 2021 % September 30, % 2021 Change 2020 Change

Commercial,Financial, and $ 77,349 $ 70,943 9 % $ 95,365 (19 )%Agricultural

Owner-Occupied 13,134 13,155 - 20,261 (35 )

TotalCommercial & 90,483 84,098 8 115,626 (22 )Industrial

Multi-Family 2,396 2,407 - 157 nm

Office 2,488 1,618 54 27,608 (91 )Buildings

Shopping 932 124 652 257 263 Centers

Warehouses 302 218 39 - nm

OtherInvestment 624 407 53 238 162 Property

TotalInvestment 6,742 4,774 41 28,260 (76 )Properties

1-4 Family 522 548 (5 ) 1,556 (66 )Construction

1-4 FamilyInvestment 2,364 1,927 23 1,815 30 Mortgage

Total 1-4Family 2,886 2,475 17 3,371 (14 )Properties

Commercial 463 560 (17 ) 833 (44 )Development

Residential 449 451 - 648 (31 )Development

Land 1,024 1,029 - 910 13 Acquisition

Land and 1,936 2,040 (5 ) 2,391 (19 )Development

TotalCommercial 11,564 9,289 24 34,022 (66 )Real Estate

Consumer 37,541 51,376 (27 ) 7,433 405 Mortgages

Home Equity 8,688 8,938 (3 ) 10,297 (16 )Lines

Other Consumer 7,189 7,327 (2 ) 1,459 393 Loans

Total Consumer 53,418 67,641 (21 ) 19,189 178

Total $ 155,465 $ 161,028 (3 )% $ 168,837 (8 )%

Synovus

CREDIT QUALITY DATA

(Unaudited)

(Dollars in thousands)

2021

2020

Third Quarter

Third

Second

First

Fourth

Third

'21 vs '20

Quarter

Quarter

Quarter

Quarter

Quarter

% Change

Non-performing Loans (NPLs)

$

155,465

161,028

155,169

151,079

168,837

(8

)%

Impaired Loans Held for Sale

-

-

23,590

23,590

-

nm

Other Real Estate and Other Assets

16,883

16,806

16,849

17,394

23,280

(27

)

Non-performing Assets (NPAs)

172,348

177,834

195,608

192,063

192,117

(10

)

Allowance for Loan Losses (ALL)

492,243

516,708

563,214

605,736

603,800

(18

)

Reserve for Unfunded Commitments

42,971

46,890

51,528

47,785

60,794

(29

)

Allowance for Credit Losses (ACL)

535,214

563,598

614,742

653,521

664,594

(19

)

Net Charge-Offs - Quarter

20,516

26,547

20,204

22,139

28,466

Net Charge-Offs - YTD

67,266

46,750

20,204

94,712

72,573

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

0.22

%

0.28

0.21

0.23

0.29

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

0.24

0.24

0.21

0.24

0.25

NPLs / Loans

0.41

0.42

0.40

0.39

0.43

NPAs / Loans, ORE and specific other assets

0.45

0.46

0.50

0.50

0.49

ACL/Loans

1.40

1.47

1.58

1.71

1.68

ALL/Loans

1.28

1.35

1.45

1.58

1.53

ACL/NPLs

344.27

350.00

396.18

432.57

393.63

ALL/NPLs

316.63

320.88

362.97

400.94

357.62

Past Due Loans over 90 days and Still Accruing

$

5,960

4,415

3,804

4,117

7,512

(21

)

As a Percentage of Loans Outstanding

0.02

%

0.01

0.01

0.01

0.02

Total Past Due Loans and Still Accruing

$

60,817

49,321

45,693

47,349

57,316

6

As a Percentage of Loans Outstanding

0.16

%

0.13

0.12

0.12

0.14

Accruing Troubled Debt Restructurings (TDRs)

$

126,055

124,528

129,776

134,972

163,511

(23

)

(1) Ratio is annualized.

SELECTED CAPITAL INFORMATION (1)

(Unaudited)

(Dollars in thousands)

September 30, 2021

December 31, 2020

September 30, 2020

Tier 1 Capital

$

4,836,672

4,572,010

4,450,547

Total Risk-Based Capital

5,788,290

5,604,230

5,536,918

Common Equity Tier 1 Capital Ratio

9.63

%

9.66

9.30

Tier 1 Capital Ratio

10.83

10.95

10.57

Total Risk-Based Capital Ratio

12.96

13.42

13.16

Tier 1 Leverage Ratio

8.82

8.50

8.48

Common Equity as a Percentage of Total Assets (2)

8.50

8.51

8.54

Tangible Common Equity Ratio (3) (5)

7.68

7.66

7.67

Book Value Per Common Share (4)

$

32.41

31.24

30.73

Tangible Book Value Per Common Share (3)

29.04

27.88

27.34

(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/20211019005582/en/

CONTACT: Media Contact Alison Dowe Media Relations (706) 641-3781

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