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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

October 20, 2022
Date of Report
(Date of Earliest Event Reported)

Synovus Financial Corp.
(Exact Name of Registrant as Specified in its Charter)
Georgia 1-10312 58-1134883
(State of Incorporation) (Commission File Number) (IRS Employer Identification No.)

1111 Bay Avenue, Suite 500, Columbus, Georgia 31901
(Address of principal executive offices) (Zip Code)

(706) 641-6500
(Registrant’s telephone number, including area code)

________________________________________________
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

    ☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

    ☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

    ☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

    ☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol Name of each exchange on which registered
Common Stock, $1.00 Par Value
SNV
New York Stock Exchange
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D
SNV-PrD
New York Stock Exchange
Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series E
SNV-PrE
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02 Results of Operations and Financial Condition
On October 20, 2022, Synovus Financial Corp. (the "Company") issued a press release announcing the Company’s financial results for the three and nine month period ended September 30, 2022.
Pursuant to General Instruction F to Current Report on Form 8-K, the press release is attached to this Current Report as Exhibit 99.1 and only those portions of the press release related to the historical results of operations of the Company for the three and nine month period ended September 30, 2022 are incorporated into this Item 2.02 by reference. The information contained in this Item 2.02, including the information set forth in the press release filed as Exhibit 99.1 to, and incorporated in, this Current Report is being "furnished" and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section. The information in Exhibit 99.1 furnished pursuant to this Item 2.02 shall not be incorporated by reference into any registration statement or other documents pursuant to the Securities Act of 1933, as amended (the "Securities Act"), or into any filing or other document pursuant to the Exchange Act except as otherwise expressly stated in any such filing.
Item 7.01 Regulation FD Disclosure
On October 20, 2022, the Company made available the supplemental information (the "Supplemental Information") and slide presentation ("Slide Presentation") prepared for use with the press release. The investor call and webcast will be held at 8:30 a.m., ET, on October 20, 2022.
The information contained in this Item 7.01 of this Current Report, including the information set forth in the Supplemental Information and the Slide Presentation filed as Exhibit 99.2 and Exhibit 99.3 to, and incorporated in, this Current Report, is being "furnished" and shall not be deemed "filed" for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that Section. The information in Exhibit 99.2 and Exhibit 99.3 furnished pursuant to this Item 7.01 shall not be incorporated by reference into any registration statement or other documents pursuant to the Securities Act or into any filing or other document pursuant to the Exchange Act except as otherwise expressly stated in any such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit No. Description
99.1
99.2
99.3



Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, Synovus has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SYNOVUS FINANCIAL CORP.
Date: October 20, 2022
By: /s/ Allan E. Kamensky
Name: Allan E. Kamensky
Title: Executive Vice President and General Counsel
         


EX-99.1 2 snv_09302022xex991xfilingx.htm EX-99.1 Document

Exhibit 99.1
synovusa04.jpg
Media Contact
 Investor Contact
Audria Belton
 Cal Evans
Media Relations
 Investor Relations
media@synovus.com
investorrelations@synovus.com
Synovus Announces Earnings for the Third Quarter 2022
Diluted Earnings per Share of $1.33 vs. $1.21 in 3Q21
Adjusted Diluted Earnings per Share of $1.34 vs. $1.20 in 3Q21

COLUMBUS, Ga., Oct. 20, 2022 - Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended Sept. 30, 2022. “We demonstrated ongoing progress this quarter as we continue to execute our strategic growth plan,” said Synovus President and CEO Kevin Blair. “Our strong third quarter performance is a result of increased productivity, deepened, more profitable client relationships as well as prudent expense management. Pre-provision net revenue of $288 million, up 24% year over year, was driven by broad-based loan growth and robust margin expansion. Credit quality was solid in the third quarter, and capital remained at targeted levels as we continued to utilize our strong earnings to support client loan growth. We are confident in and committed to our path forward by investing in our core and new business initiatives while prioritizing credit, capital and liquidity management as we face economic uncertainty ahead.”

Third Quarter 2022 Highlights
•Net income available to common shareholders of $194.8 million, or $1.33 per diluted share, up $0.17 sequentially and up $0.12 compared to prior year.
•Total revenue of $582.2 million increased $59.6 million sequentially, or 11%, and increased $82.3 million, or 16%, compared to prior year, driven by strong loan growth and higher interest rates.
•Pre-provision net revenue of $288.2 million increased $47.6 million sequentially, or 20%, and increased $55.4 million, or 24%, compared to prior year.
•Period-end loans increased $1.37 billion sequentially, or 13% annualized, with growth diversified across asset classes and commercial business lines.
•Total deposits declined $1.34 billion sequentially, or 3%, primarily resulting from higher-rate, non-bank liquidity alternatives for clients, seasonality, and excess liquidity deployment.
•Credit quality metrics continue to remain at strong levels with sequential improvement in the NPA ratio, stable NPL and criticized/classified loan ratios, and a historically low net charge-off ratio.
•Maintained preliminary CET1 ratio of 9.51% as robust capital generation continued to support client loan growth.







Third Quarter Summary
Reported Adjusted
(dollars in thousands) 3Q22 2Q22 3Q21 3Q22 2Q22 3Q21
Net income available to common shareholders $ 194,753  $ 169,761  $ 178,482  $ 195,481  $ 171,018  $ 177,760 
Diluted earnings per share 1.33  1.16  1.21  1.34  1.17  1.20 
Total revenue 582,217  522,654  499,872  N/A N/A N/A
Total loans 42,571,458  41,204,780  38,341,030  N/A N/A N/A
Total deposits 47,697,564  49,034,700  47,688,419  N/A N/A N/A
Return on avg assets 1.39  % 1.26  % 1.34  % 1.39  % 1.27  % 1.33  %
Return on avg common equity 18.66  16.48  14.96  18.73  16.60  14.90 
Return on avg tangible common equity 21.29  18.84  16.85  21.37  18.98  16.79 
Net interest margin 3.49  3.22  3.01  N/A N/A N/A
Efficiency ratio-TE(1)(2)
 50.41  53.87  53.34  49.98  53.43  52.96 
NCO ratio-QTD 0.04  0.16  0.22  N/A N/A N/A
NPA ratio 0.32  0.33  0.45  N/A N/A N/A
(1) Taxable equivalent
(2) Adjusted tangible efficiency ratio

Balance Sheet
Loans*
(dollars in millions) 3Q22 2Q22 Linked Quarter Change Linked Quarter % Change 3Q21 Year/Year Change Year/Year % Change
Commercial & industrial**
 $ 21,212.5  $ 20,778.3  $ 434.2  2  % $ 18,994.3  $ 2,218.2  12  %
Commercial real estate 12,288.0  11,503.4  784.5  7  10,574.1  1,713.9  16 
Consumer 9,071.0  8,923.0  147.9  2  8,772.7  298.3  3 
Total loans $ 42,571.5  $ 41,204.8  $ 1,366.7  3  % $ 38,341.0  $ 4,230.4  11  %

*Amounts may not total due to rounding
**Includes PPP balances of $42.8 million, $86.7 million, and $782.2 million at 3Q22, 2Q22, and 3Q21, respectively.

•Total loans ended the quarter at $42.57 billion, up $1.37 billion sequentially, or 13% annualized.
•Commercial and industrial (C&I) loans increased $434.2 million sequentially, led by broad based growth within our Wholesale Banking segment and higher utilization from commitments.
•CRE loans increased $784.5 million sequentially, led by growth in multi-family loans and our Specialty Healthcare group in addition to the impact of a slowdown in payoffs.
•Consumer loans increased $147.9 million sequentially led by home equity and mortgage.



Deposits*
(dollars in millions) 3Q22 2Q22 Linked Quarter Change Linked Quarter % Change 3Q21 Year/Year Change Year/Year % Change
Non-interest-bearing DDA $ 15,373.7  $ 15,781.1  $ (407.4) (3) % $ 14,832.9  $ 540.8  4  %
Interest-bearing DDA 5,776.8  6,327.1  (550.3) (9) 6,056.0  (279.2) (5)
Money market 12,918.6  13,793.0  (874.5) (6) 14,267.4  (1,348.9) (9)
Savings 1,470.1  1,498.7  (28.6) (2) 1,380.4  89.7  6 
Public funds 5,549.7  5,863.9  (314.2) (5) 5,791.6  (241.9) (4)
Time deposits 2,110.9  2,147.8  (36.8) (2) 2,579.3  (468.4) (18)
Brokered deposits 4,497.8  3,623.1  874.7  24  2,780.7  1,717.1  62 
Total deposits $ 47,697.6  $ 49,034.7  $ (1,337.1) (3) % $ 47,688.4  $ 9.1  —  %

*Amounts may not total due to rounding

•Total deposits ended the quarter at $47.70 billion, down $1.34 billion sequentially, impacted by higher-rate, non-bank liquidity alternatives for clients, seasonality, and excess liquidity deployment.
•Total deposit costs increased 23 bps sequentially to 0.38% and were primarily impacted by the rising rate environment.

Income Statement Summary**
(in thousands, except per share data) 3Q22 2Q22 Linked Quarter Change Linked Quarter % Change 3Q21 Year/Year Change Year/Year % Change
Net interest income $ 477,919  $ 425,388  $ 52,531  12  % $ 384,917  $ 93,002  24  %
Non-interest revenue 104,298  97,266  7,032  7  114,955  (10,657) (9)
Non-interest expense 294,010  282,051  11,959  4  267,032  26,978  10 
Provision for (reversal of) credit losses 25,581  12,688  12,893  102  (7,868) 33,449  nm
Income before taxes $ 262,626  $ 227,915  $ 34,711  15  % $ 240,708  $ 21,918  9  %
Income tax expense 59,582  49,863  9,719  19  53,935  5,647  10 
Preferred stock dividends 8,291  8,291  —  —  8,291  —  — 
Net income available to common shareholders $ 194,753  $ 169,761  $ 24,992  15  % $ 178,482  $ 16,271  9  %
Weighted average common shares outstanding, diluted 146,418  146,315  103  —  % 147,701  (1,283) (1) %
Diluted earnings per share $ 1.33  $ 1.16  $ 0.17  15  $ 1.21  $ 0.12  10 
Adjusted diluted earnings per share 1.34  1.17  0.17  15  1.20  0.14  12 
Effective tax rate 22.69  % 21.88  % 22.41  %

**    Amounts may not total due to rounding




Core Performance

•Net interest income of $477.9 million was up $52.5 million sequentially, or 12%, and increased $93.0 million, or 24%, compared to prior year, driven by strong loan growth and higher rates.
◦Net interest margin was 3.49%, up 27 bps sequentially, aided by higher interest rates and deposit pricing discipline.
•Non-interest revenue increased $7.0 million, or 7%, sequentially and decreased $10.7 million, or 9%, compared to prior year.
◦The quarter-over-quarter increase was largely due to a prior quarter $7 million write-down on a minority fintech investment.
◦Year-over-year decline was primarily related to the continued challenging residential mortgage banking environment and prior year gains on equity investments, partially offset by increases in wealth revenue, brokerage revenue, and card fee income categories.
•Non-interest expense increased $12.0 million, or 4%, sequentially and increased $27.0 million, or 10%, compared to prior year. Adjusted non-interest expense increased $10.5 million, or 4%, sequentially and increased $27.1 million, or 10%, compared to prior year.
◦Increases were primarily due to higher performance-based incentives, merit-related salary increases, and operating costs related to realized revenue growth and investments in new growth initiatives.
•Credit quality ratios remain historically strong. The non-performing loan and asset ratios were 0.29% and 0.32%, respectively; the net charge-off ratio for the quarter was 0.04%, and total past dues were 0.15% of total loans outstanding.
•Provision for credit losses of $25.6 million increased $12.9 million sequentially and increased $33.4 million compared to prior year. Drivers of the increase included loan growth and a modest increase in the allowance for credit losses coverage ratio (to loans) of 2 bps sequentially, a result of deteriorating economic conditions mostly offset by continued strong credit quality.


Capital Ratios
3Q22 2Q22 3Q21
Common equity Tier 1 capital (CET1) ratio 9.51  %
*
 9.46  % 9.58  %
Tier 1 capital ratio 10.58 
*
 10.56  10.79 
Total risk-based capital ratio 12.44 
*
 12.43  12.92 
Tier 1 leverage ratio 9.04 
*
 9.03  8.78 
Tangible common equity ratio 5.52  6.26  7.68 
* Ratios are preliminary.

Capital

•Preliminary CET1 ratio improved 5 bps during the quarter to 9.51%, and the preliminary total risk-based capital ratio of 12.44% improved 1 bps from the previous quarter as capital generated through earnings helped offset the impact of loan growth.

Third Quarter Earnings Conference Call
Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on October 20, 2022. 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 $59 billion in assets. Synovus provides commercial and consumer banking and a full suite of specialized products and services, including private banking, treasury management, wealth management, mortgage services, premium finance, asset-based lending, structured lending, capital markets and international banking.


Synovus has 254 branches in Georgia, Alabama, South Carolina, Florida and Tennessee. Synovus is a Great Place to Work-Certified Company and 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, 2021, 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 expense; 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 expense; efficiency ratio-TE; 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. 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) 3Q22 2Q22 3Q21
Adjusted non-interest expense
Total non-interest expense $ 294,010  $ 282,051  $ 267,032 
Subtract: Earnout liability adjustments —  —  243 
Subtract/add: Restructuring charges (956) 1,850  (319)
Subtract: Valuation adjustment to Visa derivative —  (3,500) — 
Subtract/add: Fair value adjustment on non-qualified deferred compensation 1,076  3,240  97 
Adjusted non-interest expense
 $ 294,130  $ 283,641  $ 267,053 


Reconciliation of Non-GAAP Financial Measures, continued
(dollars in thousands) 3Q22 2Q22 3Q21
Adjusted tangible efficiency ratio
Adjusted non-interest expense
 $ 294,130  $ 283,641  $ 267,053 
Subtract: Amortization of intangibles (2,118) (2,118) (2,379)
Adjusted tangible non-interest expense
 $ 292,012  $ 281,523  $ 264,674 
Net interest income
 $ 477,919  $ 425,388  $ 384,917 
Add: Tax equivalent adjustment
 972  960  736 
Add: Total non-interest revenue
 104,298  97,266  114,955 
Total TE revenue
 583,189  523,614  500,608 
Add/subtract: Investment securities losses (gains), net —  —  (962)
Subtract/add: Fair value adjustment on non-qualified deferred compensation 1,076  3,240  97 
Total adjusted revenue
 $ 584,265  $ 526,854  $ 499,743 
Efficiency ratio-TE
 50.41  % 53.87  % 53.34  %
Adjusted tangible efficiency ratio
 49.98  53.43  52.96 
Adjusted return on average assets
Net income $ 203,044  $ 178,052  $ 186,773 
Add: Earnout liability adjustments —  —  (243)
Add/subtract: Restructuring charges 956  (1,850) 319 
Add: Valuation adjustment to Visa derivative —  3,500  — 
Add/subtract: Investment securities losses (gains), net —  —  (962)
Add/subtract: Tax effect of adjustments (1)
 (228) (393) 164 
Adjusted net income $ 203,772  $ 179,309  $ 186,051 
Net income annualized $ 805,555  $ 714,165  $ 741,002 
Adjusted net income annualized $ 808,443  $ 719,206  $ 738,137 
Total average assets $ 58,055,979  $ 56,536,940  $ 55,326,260 
Return on average assets 1.39  % 1.26  % 1.34  %
Adjusted return on average assets 1.39  1.27  1.33 
Adjusted net income available to common shareholders and adjusted diluted earnings per share
Net income available to common shareholders $ 194,753  $ 169,761  $ 178,482 
Add: Earnout liability adjustments —  —  (243)
Add/subtract: Restructuring charges 956  (1,850) 319 
Add: Valuation adjustment to Visa derivative —  3,500  — 
Add/subtract: Investment securities losses (gains), net —  —  (962)
Add/subtract: Tax effect of adjustments (1)
 (228) (393) 164 
Adjusted net income available to common shareholders $ 195,481  $ 171,018  $ 177,760 
Weighted average common shares outstanding, diluted 146,418  146,315  147,701 
Diluted earnings per share $ 1.33  $ 1.16  $ 1.21 
Adjusted diluted earnings per share 1.34  1.17  1.20 


Reconciliation of Non-GAAP Financial Measures, continued
(dollars in thousands)
 3Q22 2Q22 3Q21
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 $ 194,753  $ 169,761  $ 178,482 
Subtract/add: Earnout liability adjustments —  —  (243)
Add/subtract: Restructuring charges 956  (1,850) 319 
Add: Valuation adjustment to Visa derivative —  3,500  — 
Add/subtract: Investment securities losses (gains), net —  —  (962)
Add/subtract: Tax effect of adjustments (1)
 (228) (393) 164 
Adjusted net income available to common shareholders
 $ 195,481  $ 171,018  $ 177,760 
Adjusted net income available to common shareholders annualized
 $ 775,550  $ 685,951  $ 705,243 
Add: Amortization of intangibles, annualized net of tax
 6,401  6,471  7,050 
Adjusted net income available to common shareholders excluding amortization of intangibles annualized
 $ 781,951  $ 692,422  $ 712,293 
Net income available to common shareholders annualized
 $ 772,661  $ 680,910  $ 708,108 
Add: Amortization of intangibles, annualized net of tax 6,401  6,471  7,050 
Net income available to common shareholders excluding amortization of intangibles annualized $ 779,062  $ 687,381  $ 715,158 
Total average shareholders' equity less preferred stock $ 4,141,516  $ 4,132,536  $ 4,734,754 
Subtract: Goodwill (452,390) (452,390) (452,390)
Subtract: Other intangible assets, net (30,214) (32,387) (39,109)
Total average tangible shareholders' equity less preferred stock $ 3,658,912  $ 3,647,759  $ 4,243,255 
Return on average common equity 18.66  % 16.48  % 14.96  %
Adjusted return on average common equity 18.73  16.60  14.90 
Return on average tangible common equity 21.29  18.84  16.85 
Adjusted return on average tangible common equity 21.37  18.98  16.79 
(dollars in thousands)
 September 30, 2022 June 30, 2022 December 31, 2021 September 30, 2021
Tangible common equity ratio
Total assets
 $ 58,639,522  $ 57,382,745  $ 57,317,226  $ 55,509,129 
Subtract: Goodwill
 (452,390) (452,390) (452,390) (452,390)
Subtract: Other intangible assets, net
 (29,242) (31,360) (35,596) (37,975)
Tangible assets
 $ 58,157,890  $ 56,898,995  $ 56,829,240  $ 55,018,764 
Total shareholders’ equity
 $ 4,229,715  $ 4,584,438  $ 5,296,800  $ 5,252,802 
Subtract: Goodwill
 (452,390) (452,390) (452,390) (452,390)
Subtract: Other intangible assets, net
 (29,242) (31,360) (35,596) (37,975)
Subtract: Preferred Stock, no par value
 (537,145) (537,145) (537,145) (537,145)
Tangible common equity
 $ 3,210,938  $ 3,563,543  $ 4,271,669  $ 4,225,292 
Total shareholders’ equity to total assets ratio
 7.21  % 7.99  % 9.24  % 9.46  %
Tangible common equity ratio
 5.52  6.26  7.52  7.68 
(1) An assumed marginal tax rate of 23.8% for 2022 and 25.3% for 2021 was applied.

EX-99.2 3 snv_09302022xex992xfilingx.htm EX-99.2 Document

Synovus Exhibit 99.2
INCOME STATEMENT DATA
(Unaudited)
(Dollars in thousands, except per share data) Nine Months Ended September 30,
2022 2021 22 vs '21
% Change
Interest income $ 1,421,133  $ 1,235,064  15  %
Interest expense 125,578  94,430  33 
Net interest income 1,295,555  1,140,634  14 
Provision for (reversal of) credit losses 49,669  (51,041) nm
Net interest income after provision for credit losses 1,245,886  1,191,675  5 
Non-interest revenue:
Service charges on deposit accounts 69,428  64,089  8 
Fiduciary and asset management fees 59,577  56,545  5 
Card fees 45,946  38,538  19 
Brokerage revenue 47,038  41,644  13 
Mortgage banking income 14,922  47,312  (68)
Capital markets income 19,704  18,929  4 
Income from bank-owned life insurance 22,514  22,851  (1)
Investment securities gains (losses), net —  (1,028) nm
Other non-interest revenue 27,768  44,117  (37)
Total non-interest revenue 306,897  332,997  (8)
Non-interest expense:
Salaries and other personnel expense 499,081  482,408  3 
Net occupancy, equipment, and software expense 129,538  126,442  2 
Third-party processing and other services 65,486  63,897  2 
Professional fees 26,094  23,771  10 
FDIC insurance and other regulatory fees 20,851  16,338  28 
Restructuring charges (7,318) 1,265  nm
Other operating expenses 114,779  90,576  27 
Total non-interest expense 848,511  804,697  5 
Income before income taxes 704,272  719,975  (2)
Income tax expense 152,140  159,910  (5)
Net income 552,132  560,065  (1)
Less: Preferred stock dividends 24,872  24,872  — 
Net income available to common shareholders $ 527,260  $ 535,193  (1) %
Net income per common share, basic $ 3.63  $ 3.63  0  %
Net income per common share, diluted 3.60  3.59  0 
Cash dividends declared per common share 1.02  0.99  3 
Return on average assets * 1.29  % 1.37  % (8)  bps
Return on average common equity * 16.37  15.37  100 
Weighted average common shares outstanding, basic 145,329  147,622  (2) %
Weighted average common shares outstanding, diluted 146,465  149,069  (2)
nm - not meaningful
bps - basis points
* - ratios are annualized



Synovus
INCOME STATEMENT DATA
(Unaudited)
(Dollars in thousands, except per share data) 2022 2021 Third Quarter
Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter  '22 vs '21
% Change
Interest income $ 551,299  453,772  416,062  418,279  412,504  34  %
Interest expense 73,380  28,384  23,814  25,966  27,587  166 
Net interest income 477,919  425,388  392,248  392,313  384,917  24 
Provision for (reversal of) credit losses 25,581  12,688  11,400  (55,210) (7,868) nm
Net interest income after provision for credit losses 452,338  412,700  380,848  447,523  392,785  15 
Non-interest revenue:
Service charges on deposit accounts 23,398  23,491  22,539  22,221  22,641  3 
Fiduciary and asset management fees 19,201  20,100  20,277  20,602  19,786  (3)
Card fees 15,101  16,089  14,756  12,861  13,238  14 
Brokerage revenue 17,140  15,243  14,655  14,795  14,745  16 
Mortgage banking income 5,065  3,904  5,953  7,059  11,155  (55)
Capital markets income 6,839  7,393  5,472  7,188  8,089  (15)
Income from bank-owned life insurance 6,792  9,165  6,556  15,168  6,820  — 
Investment securities gains (losses), net —  —  —  230  962  nm
Other non-interest revenue 10,762  1,881  15,126  16,944  17,519  (39)
Total non-interest revenue 104,298  97,266  105,334  117,068  114,955  (9)
Non-interest expense:
Salaries and other personnel expense 173,334  161,063  164,684  167,018  160,364  8 
Net occupancy, equipment, and software expense 43,462  43,199  42,877  42,780  43,483  — 
Third-party processing and other services 22,539  21,952  20,996  22,791  19,446  16 
Professional fees 6,755  10,865  8,474  9,014  6,739  — 
FDIC insurance and other regulatory fees 7,707  6,894  6,250  6,016  5,212  48 
Restructuring charges 956  (1,850) (6,424) 5,958  319  nm
Other operating expenses 39,257  39,928  35,593  41,630  31,469  25 
Total non-interest expense 294,010  282,051  272,450  295,207  267,032  10 
Income before income taxes 262,626  227,915  213,732  269,384  240,708  9 
Income tax expense 59,582  49,863  42,695  68,983  53,935  10 
Net income 203,044  178,052  171,037  200,401  186,773  9 
Less: Preferred stock dividends 8,291  8,291  8,291  8,291  8,291  — 
Net income available to common shareholders $ 194,753  169,761  162,746  192,110  178,482  9  %
Net income per common share, basic $ 1.34  1.17  1.12  1.32  1.22  10  %
Net income per common share, diluted 1.33  1.16  1.11  1.31  1.21  10 
Cash dividends declared per common share 0.34  0.34  0.34  0.33  0.33  3 
Return on average assets * 1.39  % 1.26  1.22  1.40  1.34  5   bps
Return on average common equity * 18.66  16.48  14.20  16.11  14.96  370 
Weighted average common shares outstanding, basic 145,386  145,328  145,273  145,316  146,308  (1) %
Weighted average common shares outstanding, diluted 146,418  146,315  146,665  146,793  147,701  (1)
 nm - not meaningful
 bps - basis points
* - ratios are annualized



Synovus
BALANCE SHEET DATA September 30, 2022 December 31, 2021 September 30, 2021
(Unaudited)
(In thousands, except share data)
ASSETS
Cash and due from banks $ 516,163  $ 432,925  $ 483,035 
Interest-bearing funds with Federal Reserve Bank 1,260,748  2,479,006  2,103,497 
Interest earning deposits with banks 32,445  25,535  23,261 
Federal funds sold and securities purchased under resale agreements 58,448  72,387  77,627 
Cash, cash equivalents, and restricted cash 1,867,804  3,009,853  2,687,420 
Investment securities available for sale, at fair value 9,587,508  10,918,329  10,481,071 
Loans held for sale ($56,517, $108,198, and $152,258 measured at fair value, respectively) 696,450  750,642  550,948 
Loans, net of deferred fees and costs 42,571,458  39,311,958  38,341,030 
Allowance for loan losses (421,359) (427,597) (492,243)
Loans, net 42,150,099  38,884,361  37,848,787 
Cash surrender value of bank-owned life insurance 1,084,060  1,068,616  1,065,256 
Premises, equipment, and software, net 376,823  407,241  423,933 
Goodwill 452,390  452,390  452,390 
Other intangible assets, net 29,242  35,596  37,975 
Other assets 2,395,146  1,790,198  1,961,349 
Total assets $ 58,639,522  $ 57,317,226  $ 55,509,129 
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest-bearing deposits $ 16,359,551  $ 16,392,653  $ 15,787,882 
Interest-bearing deposits 31,338,013  33,034,623  31,900,537 
Total deposits 47,697,564  49,427,276  47,688,419 
Federal funds purchased and securities sold under repurchase agreements 240,210  264,133  262,548 
Long-term debt 4,434,327  1,204,229  1,203,761 
Other liabilities 2,037,706  1,124,788  1,101,599 
Total liabilities 54,409,807  52,020,426  50,256,327 
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 170,097,791, 169,383,758, and 169,170,589; outstanding 145,442,933, 145,010,086, and 145,483,994 170,098  169,384  169,171 
Additional paid-in capital 3,916,729  3,894,109  3,883,289 
Treasury stock, at cost – 24,654,858, 24,373,672, and 23,686,595 shares (944,484) (931,497) (898,707)
Accumulated other comprehensive income (loss), net (1,534,314) (82,321) (5,462)
Retained earnings 2,084,541  1,709,980  1,567,366 
Total shareholders’ equity 4,229,715  5,296,800  5,252,802 
Total liabilities and shareholders' equity $ 58,639,522  $ 57,317,226  $ 55,509,129 




Synovus
AVERAGE BALANCES, INTEREST, AND YIELDS/RATES
(Unaudited)
Third Quarter 2022 Second Quarter 2022 Third Quarter 2021
(dollars in thousands)
 Average Balance Interest   Yield/
   Rate		 Average Balance Interest   Yield/
   Rate		 Average Balance Interest   Yield/
   Rate
Assets
Interest earning assets:
Commercial loans (1) (2) (3)
 $ 32,836,799  $ 384,995  4.65  % $ 31,870,387  $ 308,442  3.88  % $ 28,984,837  $ 285,445  3.91  %
Consumer loans (1) (2)
 8,931,573  94,425  4.21  8,720,488  83,826  3.86  8,549,296  84,615  3.94 
Less: Allowance for loan losses
 (419,160) —  —  (415,372) —  —  (514,828) —  — 
Loans, net
 41,349,212  479,420  4.60  40,175,503  392,268  3.92  37,019,305  370,060  3.97 
Investment securities available for sale
 11,126,705  53,550  1.93  11,153,091  50,312  1.81  9,876,651  35,876  1.45 
Trading account assets
 16,771  81  1.93  11,987  73  2.44  5,192  15 1.15 
Other earning assets(4)
 1,012,717  5,791  2.24  813,028  1,660  0.81  3,271,501  1248 0.15 
FHLB and Federal Reserve Bank stock    
 244,879  1,412  2.31  179,837  1,820  4.05  159,741  501  1.26 
Mortgage loans held for sale
 66,601  862  5.18  85,299  921  4.32  196,032  1,410  2.88 
Other loans held for sale 892,805  11,155  4.89  725,762  7,678  4.19  527,736  4,130  3.06 
Total interest earning assets
 54,709,690  $ 552,271  4.01  % 53,144,507  $ 454,732  3.43  % 51,056,158  $ 413,240  3.22  %
Cash and due from banks
 557,537  538,647  611,783 
Premises and equipment
 383,189  385,457  447,046 
Other real estate
 2,398  11,439  1,513 
Cash surrender value of bank-owned life insurance
 1,080,914  1,077,231  1,061,478 
Other assets(5)    
 1,322,251  1,379,659  2,148,282 
Total assets
 $ 58,055,979  $ 56,536,940  $ 55,326,260 
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits    
 $ 8,436,922  $ 5,782  0.27  % $ 9,513,334  $ 3,598  0.15  % $ 8,463,325  $ 2,192  0.10  %
Money market accounts
 15,411,450  20,696  0.53  15,328,395  6,850  0.18  15,597,723  6,081  0.15 
Savings deposits
 1,508,312  84  0.02  1,506,195  72  0.02  1,377,089  60  0.02 
Time deposits
 2,270,163  2,428  0.42  2,829,684  1,688  0.24  3,424,028  3,572  0.41 
Brokered deposits 3,899,669  17,927  1.82  2,878,536  6,293  0.88  2,859,123  4,181  0.58 
Federal funds purchased and securities sold under repurchase agreements    
 240,412  641  1.04  246,737  219  0.35  202,525  36  0.07 
Other short-term borrowings
 702,443  3,666  2.04  478,469  896  0.74  —  —  — 
Long-term debt
 2,656,939  22,156  3.29  878,413  8,768  3.99  1,203,500  11,465  3.81 
Total interest-bearing liabilities
 35,126,310  $ 73,380  0.81  % 33,659,763  $ 28,384  0.33  % 33,127,313  $ 27,587  0.33  %
Non-interest-bearing demand deposits
 16,904,353  16,959,850  15,755,929 
Other liabilities
 1,346,655  1,247,646  1,171,119 
Shareholders' equity
 4,678,661  4,669,681  5,271,899 
Total liabilities and shareholders' equity
 $ 58,055,979  $ 56,536,940  $ 55,326,260 
Net interest income and net interest margin, taxable equivalent (6)
 $ 478,891  3.49  % $ 426,348  3.22  % $ 385,653  3.01  %
Less: taxable-equivalent adjustment
 972  960  736 
Net interest income
 $ 477,919  $ 425,388  $ 384,917 
(1)Average loans are shown net of deferred fees and costs. NPLs are included.
(2)Interest income includes net loan fees as follows: Third Quarter 2022 — $11.9 million, Second Quarter 2022 — $13.0 million, and Third Quarter 2021 — $30.4 million.
(3)Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans and investment securities to a taxable-equivalent basis.
(4)Includes interest-bearing funds with Federal Reserve Bank, interest earning deposits with banks, and federal funds sold and securities purchased under resale agreements.
(5)Includes average net unrealized gains/(losses) on investment securities available for sale of $(1.06) billion, $(923.1) million, and $66.6 million for the Third Quarter 2022, Second Quarter 2022, and Third Quarter 2021, respectively.
(6)The net interest margin is calculated by dividing annualized net interest income-taxable equivalent by average total interest earning assets.


Synovus
AVERAGE BALANCES, INTEREST, AND YIELDS/RATES
(Unaudited)
Nine Months Ended September 30,
2022 2021
(dollars in thousands)
 Average Balance Interest   Yield/
   Rate		 Average Balance Interest   Yield/
   Rate
Assets
Interest earning assets:
Commercial loans (1) (2) (3)
 $ 31,828,932  $ 974,024  4.09  % $ 29,611,970  $ 864,322  3.90  %
Consumer loans (1) (2)
 8,749,927  259,619  3.95  8,466,505  251,081  3.95 
Less: Allowance for loan losses
 (419,478) (558,336)
Loans, net
 40,159,381  1,233,643  4.11  37,520,139  1,115,403  3.97 
Investment securities available for sale
 11,179,378  151,111  1.80  9,171,573  98,631  1.43 
Trading account assets
 12,640  193  2.04  3,703  44  1.60 
Other earning assets(4)
 1,245,102  8,267  0.88  2,940,049  2,705  0.12 
FHLB and Federal Reserve Bank stock    
 195,238  3,917  2.67  158,921  1,971  1.65 
Mortgage loans held for sale
 85,126  2,665  4.17  228,458  4,926  2.87 
Other loans held for sale 739,627  24,133  4.30  600,776  13,685  3.00 
Total interest earning assets
 53,616,492  $ 1,423,929  3.55  % 50,623,619  $ 1,237,365  3.27  %
Cash and due from banks
 548,322  567,702 
Premises and equipment
 389,083  453,339 
Other real estate
 8,498  1,579 
Cash surrender value of bank-owned life insurance
 1,076,381  1,056,257 
Other assets(5)    
 1,515,226  2,145,850 
Total assets
 $ 57,154,002  $ 54,848,346 
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits    
 $ 9,162,519  $ 11,752  0.17  % $ 8,544,720  $ 7,606  0.12  %
Money market accounts
 15,592,834  32,896  0.28  15,475,212  21,994  0.19 
Savings deposits
 1,491,893  223  0.02  1,310,470  164  0.02 
Time deposits
 2,700,505  6,254  0.31  3,787,892  15,507  0.55 
Brokered deposits 3,192,848  27,952  1.17  3,093,485  15,204  0.66 
Federal funds purchased and securities sold under repurchase agreements    
 227,335  871  0.51  205,316  104  0.07 
Other short-term borrowings
 397,744  4,561  1.51  —  —  — 
Long-term debt
 1,512,059  41,069  3.61  1,203,054  33,851  3.75 
Total interest-bearing liabilities
 34,277,737  $ 125,578  0.48  % 33,620,149  $ 94,430  0.37  %
Non-interest-bearing demand deposits
 16,786,794  14,885,880 
Other liabilities
 1,247,020  1,149,209 
Shareholders' equity
 4,842,451  5,193,108 
Total liabilities and shareholders' equity
 $ 57,154,002  $ 54,848,346 
Net interest income, taxable equivalent net interest margin (6)
 $ 1,298,351  3.24  % $ 1,142,935  3.02  %
Less: taxable-equivalent adjustment
 2,796  2,301 
Net interest income
 $ 1,295,555  $ 1,140,634 
(1)Average loans are shown net of deferred fees and costs. NPLs are included.
(2)Interest income includes net loan fees as follows: 2022 — $45.6 million and 2021 — $90.8 million.
(3)Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans and investment securities to a taxable-equivalent basis.
(4)Includes interest-bearing funds with Federal Reserve Bank, interest earning deposits with banks, and federal funds sold and securities purchased under resale agreements.
(5)Includes average net unrealized gains/(losses) on investment securities available for sale of $(747.7) million and $73.1 million for the nine months ended September 30, 2022 and 2021, respectively.
(6)The net interest margin is calculated by dividing net interest income-taxable equivalent by average total interest earning assets.




Synovus
LOANS OUTSTANDING BY TYPE
(Unaudited) Total Loans Total Loans Linked Quarter Total Loans Year/Year
(Dollars in thousands)
Loan Type September 30, 2022 June 30, 2022 % Change September 30, 2021 % Change
Commercial, Financial, and Agricultural $ 13,254,966  $ 13,018,089  2  % $ 11,864,362  12  %
Owner-Occupied 7,957,550  7,760,236  3  7,129,926  12 
Total Commercial & Industrial 21,212,516  20,778,325  2  18,994,288  12 
Multi-Family 2,949,172  2,547,706  16  2,197,139  34 
Hotels 1,712,016  1,597,930  7  1,441,414  19 
Office Buildings 2,945,771  2,680,399  10  2,341,316  26 
Shopping Centers 1,441,385  1,458,902  (1) 1,570,020  (8)
Warehouses 943,961  811,738  16  687,496  37 
Other Investment Property 1,246,099  1,311,373  (5) 1,244,904  — 
Total Investment Properties 11,238,404  10,408,048  8  9,482,289  19 
1-4 Family Construction 249,840  234,379  7  191,906  30 
1-4 Family Investment Mortgage 389,787  407,476  (4) 421,968  (8)
Total 1-4 Family Properties 639,627  641,855  —  613,874  4 
Commercial Development 92,159  109,764  (16) 103,512  (11)
Residential Development 119,019  156,816  (24) 186,033  (36)
Land Acquisition 198,756  186,934  6  188,378  6 
Land and Development 409,934  453,514  (10) 477,923  (14)
Total Commercial Real Estate 12,287,965  11,503,417  7  10,574,086  16 
Consumer Mortgages 5,166,928  5,124,523  1  5,108,457  1 
Home Equity 1,708,246  1,579,218  8  1,359,688  26 
Credit Cards 197,978  194,290  2  199,700  (1)
Other Consumer Loans 1,997,825  2,025,007  (1) 2,104,811  (5)
Total Consumer 9,070,977  8,923,038  2  8,772,656  3 
Total $ 42,571,458  $ 41,204,780  3  % $ 38,341,030  11  %
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, 2022 June 30, 2022 % Change September 30, 2021 % Change
Commercial, Financial, and Agricultural $ 59,275  $ 48,601  22  % $ 77,349  (23) %
Owner-Occupied 8,433  11,398  (26) 13,134  (36)
Total Commercial & Industrial 67,708  59,999  13  90,483  (25)
Multi-Family 2,550  2,598  (2) 2,396  6 
Office Buildings 884  1,796  (51) 2,488  (64)
Shopping Centers 742  750  (1) 932  (20)
Warehouses 223  924  (76) 302  (26)
Other Investment Property 641  1,302  (51) 624  3 
Total Investment Properties 5,040  7,370  (32) 6,742  (25)
1-4 Family Construction 55  55  —  522  (89)
1-4 Family Investment Mortgage 3,036  3,063  (1) 2,364  28 
Total 1-4 Family Properties 3,091  3,118  (1) 2,886  7 
Commercial Development 422  432  (2) 463  (9)
Residential Development 267  399  (33) 449  (41)
Land Acquisition 980  1,093  (10) 1,024  (4)
Land and Development 1,669  1,924  (13) 1,936  (14)
Total Commercial Real Estate 9,800  12,412  (21) 11,564  (15)
Consumer Mortgages 32,527  22,857  42  37,541  (13)
Home Equity 7,121  8,100  (12) 8,702  (18)
Other Consumer Loans 4,938  5,656  (13) 7,175  (31)
Total Consumer 44,586  36,613  22  53,418  (17)
Total $ 122,094  $ 109,024  12  % $ 155,465  (21) %



Synovus
CREDIT QUALITY DATA
(Unaudited)
(Dollars in thousands) 2022 2021 Third Quarter
Third Second First Fourth Third  '22 vs '21
Quarter Quarter Quarter Quarter Quarter % Change
Non-performing Loans (NPLs) $ 122,094  109,024  132,131  131,042  155,465  (21) %
Impaired Loans Held for Sale 447  —  —  —  —  nm
Other Real Estate and Other Assets 15,320  26,759  26,759  27,137  16,883  (9)
Non-performing Assets (NPAs) 137,861  135,783  158,890  158,179  172,348  (20)
Allowance for Loan Losses (ALL) 421,359  407,837  414,956  427,597  492,243  (14)
Reserve for Unfunded Commitments 57,936  50,559  47,317  41,885  42,971  35 
Allowance for Credit Losses (ACL)
 479,295  458,396  462,273  469,482  535,214  (10)
Net Charge-Offs - Quarter 4,682  16,565  18,609  10,522  20,516 
Net Charge-Offs - YTD 39,856  35,174  18,609  77,788  67,266 
Net Charge-Offs / Average Loans - Quarter (1)
 0.04  % 0.16  0.19  0.11  0.22 
Net Charge-Offs / Average Loans - YTD (1)
 0.13  0.18  0.19  0.20  0.24 
NPLs / Loans 0.29  0.26  0.33  0.33  0.41 
NPAs / Loans, ORE and specific other assets 0.32  0.33  0.40  0.40  0.45 
ACL/Loans 1.13  1.11  1.15  1.19  1.40 
ALL/Loans 0.99  0.99  1.03  1.09  1.28 
ACL/NPLs 392.56  420.45  349.86  358.27  344.27 
ALL/NPLs 345.11  374.08  314.05  326.31  316.63 
Past Due Loans over 90 days and Still Accruing $ 3,443  2,251  3,067  6,770  5,960  (42)
As a Percentage of Loans Outstanding 0.01  % 0.01  0.01  0.02  0.02 
Total Past Due Loans and Still Accruing $ 63,545  56,160  45,385  57,565  60,817  4 
As a Percentage of Loans Outstanding 0.15  % 0.14  0.11  0.15  0.16 
Accruing Troubled Debt Restructurings (TDRs) $ 118,755  164,101  145,957  119,804  126,055  (6)
(1) Ratio is annualized.
SELECTED CAPITAL INFORMATION (1)
(Unaudited)
(Dollars in thousands)
September 30, 2022 December 31, 2021 September 30, 2021
Common Equity Tier 1 Capital Ratio 9.51  % 9.50  9.58 
Tier 1 Capital Ratio 10.58  10.66  10.79 
Total Risk-Based Capital Ratio 12.44  12.61  12.92 
Tier 1 Leverage Ratio 9.04  8.72  8.78 
Total Shareholders' Equity as a Percentage of Total Assets 7.21  9.24  9.46 
Tangible Common Equity Ratio (2) (4)
 5.52  7.52  7.68 
Book Value Per Common Share (3)
 $ 25.39  32.82  32.41 
Tangible Book Value Per Common Share (2)
 22.08  29.46  29.04 
(1) Current quarter regulatory capital information is preliminary.
(2) Excludes the carrying value of goodwill and other intangible assets from common equity and total assets.
(3) Book Value Per Common Share consists of Total Shareholders' Equity less Preferred Stock divided by total common shares outstanding.
(4) See "Non-GAAP Financial Measures" of this report for applicable reconciliation.


EX-99.3 4 a3q22snvearningspresenta.htm EX-99.3 a3q22snvearningspresenta
October 20, 2022 Third Quarter 2022 Results Exhibit 99.3

 
Forward-Looking Statements This slide presentation 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," "predicts," "could," "should," "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, statements on our expectations related to (1) loan growth; (2) deposit growth, pricing, and betas; (3) net interest income and net interest margin; (4) revenue growth; (5) non- interest expense; (6) credit trends and key credit performance metrics; (7) capital position; (8) our future operating and financial performance; (9) our strategy and initiatives for future revenue growth, balance sheet management, capital management, expense savings, and technology; (10) our effective tax rate; and (11) our assumptions underlying these 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 presentation. 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, 2021 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. Use of Non-GAAP Financial Measures This slide presentation contains certain non-GAAP financial measures determined by methods other than in accordance with generally accepted accounting principles. Such non-GAAP financial measures include the following: adjusted net income available to common shareholders; adjusted diluted earnings per share; adjusted return on average assets; return on average tangible common equity; adjusted return on average tangible common equity; adjusted non- interest revenue; adjusted non-interest expense; adjusted tangible efficiency ratio; tangible common equity ratio, and adjusted pre-provision net revenue (PPNR) x Payment Protection Plan (PPP) revenue. The most comparable GAAP measures to these measures are net income available to common shareholders; diluted earnings per share; return on average assets; return on average common equity; total non-interest revenue; total non-interest expense; efficiency ratio-TE; total shareholders' equity to total assets ratio; and PPNR, respectively. Management uses these non-GAAP financial measures to assess the performance of Synovus' business and the strength of its capital position. Management believes that these non-GAAP financial measures provide meaningful additional information about Synovus to assist management, investors, and bank regulators in evaluating Synovus' operating results, financial strength, the performance of its business and the strength of its capital position. However, these non-GAAP financial measures have inherent limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of operating results or capital position as reported under GAAP. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant items and other factors, and since they are not required to be uniformly applied, they may not be comparable to other similarly titled measures at other companies. Adjusted net income available to common shareholders, adjusted diluted earnings per share and adjusted return on average assets 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. Adjusted non-interest revenue is a measure used by management to evaluate non-interest revenue exclusive of net investment securities gains (losses) 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. The tangible common equity ratio is used by management and bank regulators to assess the strength of our capital position. Adjusted PPNR x PPP revenue is used by management to evaluate PPNR exclusive of items that management believes are not indicative of ongoing operations and impact period-to-period comparisons including PPP revenue. The computations of the non-GAAP financial measures used in this slide presentation are set forth in the Appendix to this slide presentation. ©2022 Synovus. All Rights Reserved. 2 2

 
Third Quarter 2022 Financial Highlights • Net Income(1) growth of 9% YoY ◦ PPNR(2) of $288 million, a 24% YoY increase ◦ Total revenue of $582 million, a 16% YoY increase ▪ Net interest income growth of 24% YoY • Loan growth of $1.4 billion, or 3% QoQ ◦ Growth is diversified across asset classes and commercial business lines • Total deposits down $1.3 billion, or 3% QoQ ◦ Account diminishment(3) drove deposit declines despite QoQ increases in net deposit production • Credit quality metrics continue to remain strong ◦ Charge-off ratio of 0.04% at historically low levels ◦ NPA/NPL and Criticized and Classified ratios remained stable quarter over quarter ◦ ACL ratio stable at 1.13% • Maintained CET1 ratio of 9.51% ◦ Robust capital generation used to support client loan growth Key Performance Metrics Reported Adjusted(4) Net Income Available to Common Shareholders(5) $194,753 $195,481 Diluted Earnings Per Share $1.33 $1.34 Return on Average Assets 1.39% 1.39% Return on Average Tangible Common Equity 21.3% 21.4% Efficiency Ratio-TE(6) 50.4% 50.0% Balance Sheet (Period-end, $ in millions) Total Loans, Net of Unearned $42,571 Deposits $47,698 (1) Available to common shareholders; (2) Pre-provision net revenue equals total revenue less non interest expense (3) Diminishment refers to accounts that remain open despite balance declines; (4) Non-GAAP financial measure; see appendix for applicable reconciliation; (5) In thousands; (6) Taxable equivalent; (7) Adjusted tangible efficiency ratio. 3 (7)

 
Total Loans 4 • 13% annualized loan growth QoQ ◦ Continued high credit quality commercial production, slowdown in CRE payoffs and an increase in the C&I utilization rate contributed to higher balances ◦ Higher utilization from C&I commitments existing at the end of 2Q22 contributed ~$170 million to 3Q22 loan growth ◦ Deceleration in CRE payoffs relative to 1H22 levels contributed ~$350 million to loan growth in 3Q22 • All business segments contributed to QoQ growth 10% 14% 11% 12% 14% 3Q21 4Q21 1Q22 2Q22 3Q22 QoQ Annualized % Change in Loans, ex. PPP Continued Loan Growth MomentumSummary Total C&I Revolving Commitments and Line Utilization $42.6 billion Loan Growth Attribution $42,571 $41,205 $785 $434 $148 2Q22 CRE C&I Consumer 3Q22 Change in Ending Loan Balances ($ in millions) (1) Amounts may not total due to rounding; (1) Includes changes in third-party consumer balances. ($ in millions) $12,373 $13,301 $13,873 46.1% 47.1% 47.3% Total Commitments C&I Line Utilization 1Q22 2Q22 3Q22

 
$(1,156) $(431) $(723) Total Deposits Non- interest Bearing Interest Bearing • Total deposits declined $1.3 billion, or 3% QoQ • Consumer non-interest bearing (NIB) deposits increased QoQ while seasonality and excess liquidity deployment led to commercial NIB decline • Non-bank deposit alternatives contributed to diminishment(1) in consumer and commercial interest bearing(2) accounts • Continued to see strong levels of new balance production, the result of focused relationship deepening and new customer acquisition 5 Total Deposits Summary QoQ Change in Ending Balances ($ in millions) Amounts may not total due to rounding; (1) Diminishment refers to accounts that remain open despite balance declines; (2) Interest bearing deposit accounts include savings, NOW, MMA, and time. $(742) $24 $(766) Total Deposits Non- interest Bearing Interest Bearing $47.7 billion 15% Total Deposit Beta Through September 0.25% 2.37% 2.75% 4Q21 3Q22 Sept 22 0.12% 0.38% 0.50% 4Q21 3Q22 Sept 22 Fed Target Average Total Deposit Cost 4Q21 vs. Month of September 2022 +250 bps +38 bps $875 Brokered Consumer Deposits Commercial Deposits (Ex Public Funds) (2) (2) $(314) Public Funds

 
55% 54% 55% 58% 59% 60% 61% 4Q16 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 $385 $425 $478 3.01% 3.22% 3.49% Net Interest Income Net Interest Margin 3Q21 2Q22 3Q22 3.49% 3.22% 0.05% 0.53% (0.19)% (0.13)% 0.03% 2Q22 Cash/Securities Yields Loan Yields Deposit Cost Wholesale Funding Other 3Q22 Net Interest Income NII Growth NIM Expansion ($ in millions) 3Q22 NIM: Primary Drivers of Change(1) Amounts may not total due to rounding; (1) Estimated impact; (2) Excluding brokered deposits which are included in wholesale funding; (3) 'Other' includes various unattributed items. 6 $478 million (2) Summary • NII growth of $93 million or 24% YoY ◦ Growth of $53 million or 12% QoQ • NII was supported by both loan growth and net interest margin expansion ◦ Margin expansion of 27 bps QoQ, aided by higher interest rates and deposit pricing discipline (3) Floating Rate Loan Portfolio Mix

 
$37 $13 $39 $15 3Q21 3Q22 Wealth Management Fees Card Fees Wealth Management and Card Fees Remain Strong Summary Fee Income Non-Interest Revenue ($ in millions) 3Q22 QoQ Δ YoY Δ Core Banking Fees(1) $44 (3)% 0% Wealth Revenue(2) $39 2% 5% Capital Markets Income $7 (7)% (15)% Net Mortgage Revenue $5 30% (55)% Total Other Income(3) $11 83% (23)% Total Adjusted Non-Interest Revenue(4) $105 5% (8)% Total Non-Interest Revenue $104 7% (9)% Amounts may not total due to rounding; (1) Include service charges on deposit accounts, card fees, letter of credit fees, ATM fee income, line of credit non-usage fee, gains (losses) from sales of SBA loans, and miscellaneous other service charges; (2) Consists of fiduciary/asset management, brokerage, and insurance revenues; (3) Includes earnings on equity method investments, income from BOLI, and other miscellaneous income; (4) Non-GAAP financial measure; see appendix for applicable reconciliation. 7 $104 million 14% • Card fees down QoQ due to seasonal trends, however up YoY due to account growth and increased spend levels • Wealth Revenue increased 5% YoY ◦ Non-market based advisory fees and short- term cash management products drove fee income • Net Mortgage Revenue continues to be impacted by the challenging residential mortgage environment 5% ($ in millions)

 
$267 $9 $8 $5 $2 $3 $294 Adjusted 3Q21 Performance Related Expense Hiring/ Compensation New Business Initiatives Infrastructure Expenses Other Adjusted 3Q22 $284 $4 $3 $3 $1 $294 Adjusted 2Q22 Performance Related Expense New Business Initiatives Hiring/ Compensation Other Adjusted 3Q22 QoQ Cost Drivers ($ in millions) 3Q22 QoQ Δ YoY Δ Total Employment $174 6% 9% Total Other $76 0% 21% Total Occupancy, Equipment, and Software $43 1% 0% Total Adjusted Non-Interest Expense(1) $294 4% 10% Total Non-Interest Expense $294 5% 10% Summary Expense YoY Cost Drivers Amounts may not total due to rounding; (1) Non-GAAP financial measure; see appendix for applicable reconciliation; (2) Performance related expense includes loan origination, FDIC expense, travel and entertainment, and incentives; (3) New business initiatives includes Maast, CIB, and expense related to other new growth initiatives; (4) Expenses associated with technology and operational upgrades; these expenses are included in 'Other' on the QoQ comparison chart. Non-Interest Expense 8 ($ in millions) ($ in millions) • Employment expense increases largely the result of higher salaries and performance based incentives • YoY increase in Other Expense reflects resumption of normal business activities post-COVID, operating costs directly related to realized revenue growth and investments in new growth initiatives $294 million (4) (2) (3) (3)(2)

 
NPA, NPL and Past Due Ratios $535 $469 $462 $458 $479 1.40% 1.19% 1.15% 1.11% 1.13% Allowance for Credit Losses ACL Coverage Ratio 3Q21 4Q21 1Q22 2Q22 3Q22 0.45% 0.40% 0.40% 0.33% 0.32% 0.41% 0.33% 0.33% 0.26% 0.29% 0.16% 0.15% 0.11% 0.14% 0.15% NPA Ratio NPL Ratio Total Past Dues > 30 Days Ratio 3Q21 4Q21 1Q22 2Q22 3Q22 $(8) $(55) $11 $13 $26$21 $11 $19 $17 $5 Provision for Credit Losses Net Charge-Offs 3Q21 4Q21 1Q22 2Q22 3Q22 Allowance for Credit Losses Amounts may not total due to rounding. 9 ($ in millions)($ in millions) 0.22% 0.11% 0.19% 0.16% 0.04%NCO Ratio:344% 358% 350% 420% 393%ACL to NPLs: • Stable overall credit metrics • Net Charge-offs remain at historic lows • ACL stable as loan portfolio credit improvements were offset by higher probability of downside economic scenarios Summary Credit Quality Provision and Net Charge-Offs

 
9.51%9.46% 0.39% (0.27)% (0.10)% 0.00% 0.03% Beginning CET1 Ratio (2Q22) Net Income Available to Common Shareholders Risk-Weighted Assets Common Dividends Share Repurchases Other Ending CET1 Ratio (3Q22) 9.58% 9.46% 9.51% Common Equity Tier 1 Tier 1 Tier 2 3Q21 2Q22 3Q22 Summary Capital Metrics Capital Ratios Capital Deployment Targeted Towards Organic Growth Amounts may not total due to rounding; (1) 3Q22 capital ratios are preliminary; (2) Includes changes in intangible assets and applicability of deferred tax assets. 10 (1) 10.56% 12.92% 12.43% 10.79% Total payout ratio: 25% (1) (2) • Stable capital ratios in 3Q22 as capital generated through earnings retained for core client growth • In 4Q22, expect to build capital through continued strong earnings and slower pace of loan growth ◦ In the current economic environment, plan to manage CET1 in the upper half of the established operating range of 9.25% to 9.75% 12.44% 10.58%

 
2022 Updated Guidance (1) Guidance provided during July 21, 2022 earnings call; (2) The 2021 baseline number for loan growth (ex. PPP) is $38.9 billion; (3) The 2021 adjusted revenue baseline number is $1.984 billion less PPP revenue of $95 million, or $1.889 billion; PPP revenue estimate of $14 million for 2022 ($13 million recognized through 3Q22); (4) The 2021 baseline number for adjusted non-interest expense is $1.087 billion; (5) Non-GAAP financial measure; see appendix for applicable reconciliation; (6) The 2021 baseline number for the PPNR calculation is 2021 adjusted revenue of $1.984 billion less PPP revenue of $95 million (PPP revenue estimate of $14 million for 2022); the 2021 baseline number for adjusted NIE is $1.087 billion. 11 Latest Guidance(1) Updated Loan Growth (ex. PPP)(2) Adjusted Revenue Growth (ex. PPP)(3)(5) Adjusted NIE Growth(4)(5) Adjusted PPNR Growth (ex. PPP)(5)(6) Ending CET1 Ratio Synovus Forward Effective Tax Rate At or above 8% Considerably above 11 % At or slightly above 6% Mid-20% 9.25% to 9.75% $175MM run-rate benefit by year-end 21% to 23% 15% - 16% ~ 11% 7% - 8% 25% - 27% 9.50% to 9.75% On track to achieve 21% to 22%

 
Appendix

 
Growth Initiatives Update 13 • Onboarding end-users with first pilot client • Testing and capability enhancements will continue through 2022 • Full product launch expected in first half of 2023 Syndicated Finance • Traction across our Wholesale and CIB sub-business lines • Planning to expand talent and augment technology in 2023 Treasury & Payment Solutions • Enhanced Foreign Exchange (FX) platform expected to launch in 4Q22 • MVP for Integrated Payments targeted for early 2023 Middle Market • Increased producer headcount 20%+ since the beginning of the year • Continue to focus on build-out in high growth markets (Central and South Florida, Atlanta, Nashville) Restaurant Vertical • QSR-focused funded loan balances greater than $500 million as of 3Q22 Financial Institutions (FIG) Technology, Media, and Communications (TMC) Healthcare Services Practice Leader in place Practice Leader in place Practice Leader in place • Closed first transactions in 3Q22 • Current CIB loan pipeline of more than $100mm Senior credit executive, managing director of DCM, and several credit and product support staff onboarded Corporate & Investment Banking (CIB)

 
($ in thousands) Allowance for Credit Losses ACL/Loans: Economic Scenario Assumptions and Weightings 1.11% 1.13% 1 $479,295 $458,396 $17,106 $13,086 $(11,829) $2,536 2Q22 Economic Factors Growth Performance Other Factors 3Q22 14 (1) (1) Other factors include the impact of dispositions, sub-pool changes, etc.; (2) Downside scenarios carry a total weighting of 70%, and correspond to Moody's August 2022 "S5" Slow Growth scenario and "S3" Downside 90th Percentile scenario; (3) Upside refers to Moody's August 2022 "S1" Upside 10th Percentile scenario; (4) 3rd quarter model estimates. 3rd Quarter Change from 2022(4) 2023(4) Scenario Model Weighting Previous Quarter GDP Unemployment GDP Unemployment Slow Growth(2) 55% +10% 1.6% 3.7% 1.0% 4.7% Consensus Baseline 25% -10% 1.7% 3.6% 1.3% 3.9% Downside(2) 15% NC 1.5% 4.2% (1.9)% 7.3% Upside(3) 5% NC 1.9% 3.6% 4.2% 3.3%

 
46.3% 45.3% 41.5% 35.7% 31.2% 6.7% 12.8% 18.1% 2.7% 2.9%8.6% 8.7% 8.3% 8.6% 8.3% 44.7% 42.3% 41.3% 40.2% 39.5% 3.97% 3.88% 3.76% 3.92% 4.60% LIBOR SOFR BSBY/Other Prime Fixed rate Yield 3Q21 4Q21 1Q22 2Q22 3Q22 Earning Assets Composition $10,494 $10,992 $11,158 $11,014 $11,077 1.45% 1.52% 1.68% 1.81% 1.93% Securities Yield 3Q21 4Q21 1Q22 2Q22 3Q22 $4,100 $4,750 $5,250 $4,250 $4,250 $4,100 $3,100 $3,100 $3,100 $2,350 1.21% 1.30% 1.39% 1.42% 1.42% 1.42% 1.37% 1.37% 1.37% 1.50% Notional Effective Rate 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 (1) Represents Total Notional outstanding of cash-flow loan hedges, along with the estimated effective fixed-rate for the respective period; (2) Amortized cost. 15 0.4% 1.5% 2.2% 2.2% ($ in millions) Loan Hedge Portfolio(1) Loan Portfolio Rate Mix and Yield Total Securities Portfolio Size(2) 4.3% 3.1% 1.9% 0.6% ~30% ~40% ~50% ~60% NII Sensitivity: +100 bps Scenario N II Se ns it iv it y vs . C yc le B et a Total Deposit Beta:

 
2Q22 3Q22 September 2022 ($ in millions; rates annualized) Avg. Balance Avg. Rate Avg. Balance Avg. Rate Avg. Rate Non-interest-bearing $16,960 N/A $16,904 N/A N/A Interest-bearing non-maturity (NMD) $26,348 0.16% $25,357 0.42% 0.51% Time $2,830 0.24% $2,270 0.42% 0.55% Brokered $2,879 0.88% $3,900 1.82% 2.27% Total interest-bearing $32,056 0.23% $31,527 0.59% 0.76% Total deposits $49,016 0.15% $48,431 0.38% 0.50% Average Deposit Costs 16

 
Loan Portfolio by Category • 92% are income-producing properties • Diversity among property types and geographies • Specialty lending(2) is well-diversified among multiple lines-of-business • C&I industry mix aligned with economic and demographic drivers • Weighted average credit score of 792 and 778 for Home Equity and Mortgage, respectively • Weighted average LTV of 73.6% and 73.1% for Home Equity and Mortgage, respectively(1) Consumer Portfolio - $9.1 billion CRE Portfolio - $12.3 billion C&I Portfolio - $21.2 billion Consumer R/E Related 16.1% C&I Specialty Lending(2) 22.9% Middle Market & Commercial Banking 26.9% Hotel 4.0% Shop ping C enter s 3.4% Of fic e B ldg . 6.9 % M ul ti- Fa m ily 6. 9%O th er C RE Pr op . T yp es 6. 4% Resi. Constr, Dev, Land 1.3% Consumer CRE C&I Portfolio Characteristics Consumer CRE C&I NPL Ratio 0.49% 0.08% 0.32% QTD Net Charge-off Ratio (annualized) 0.23% (0.01)% 0.00% 30+ Days Past Due Ratio 0.45% 0.02% 0.10% 90+ Days Past Due Ratio 0.02% 0.00% 0.01% Consu mer Non-R /E 5.2% 17 Amounts may not total due to rounding; (1) LTV is calculated by dividing the most recent appraisal value (typically at origination) by the sum of the 9/30/2022 commitment amount and any existing senior lien; (2) Specialty lending is primarily comprised of our senior housing portfolio, national accounts, structured lending (primarily lender finance) and insurance premium finance.

 
Commercial Real Estate Composition of 3Q22 CRE Portfolio Total Portfolio $12.3 billion Investment Properties Land, Development and Residential Properties Portfolio Characteristics (as of September 30, 2022) Office Building Multi- family Shopping Centers Hotels Other Investment Properties Warehouse Residential Properties(1) Development & Land Balance (in millions) $2,946 $2,949 $1,441 $1,712 $1,246 $944 $640 $410 Weighted Average LTV(2) 54.5% 54.8% 52.5% 56.0% 57.1% 54.0% N/A N/A NPL Ratio 0.03% 0.09% 0.05% 0.00% 0.05% 0.02% 0.48% 0.41% Net Charge-off Ratio (annualized) 0.00% 0.00% (0.01)% 0.00% (0.04)% 0.00% (0.01)% (0.10)% 30+ Days Past Due Ratio 0.00% 0.01% 0.00% 0.00% 0.00% 0.00% 0.22% 0.03% 90+ Days Past Due Ratio 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Investment Properties portfolio represent 92% of total CRE portfolio • The portfolio is well diversified among property types • Credit quality in Investment Properties portfolio remains excellent CRE Credit Quality • 0.08% NPL Ratio • (0.01)% Net Charge-Off Ratio (annualized) • 0.02% 30+ Day Past Due Ratio • 0.00% 90+ Day Past Due Ratio Amounts may not total due to rounding; (1) Includes 1-4 Family Construction and 1-4 Family Perm/Mini-Perm (primarily rental homes); (2) LTV calculated by dividing most recent appraisal (typically at origination) on non-construction component of portfolio by the 9/30/22 commitment amount. 18 18 2.0% 1.0% 1.6% 0.7% Office Building Multi-Family Hotels Shopping Center Other Investment Properties Warehouses 1-4 Family Perm/Mini-Perm 1-4 Family Construction Residential Development Land Acquisition Commercial Development 24.0%11.7% 13.9% 10.1% 24.0%7.7% 3.2%

 
C&I Portfolio Credit Indicator 3Q22 NPL Ratio 0.32% Net Charge-off Ratio (annualized) 0.00% 30+ Days Past Due Ratio 0.10% 90+ Days Past Due Ratio 0.01% • Wholesale Bank (includes Large Corporate, Middle Market, and Specialty Lines) represents 71% of C&I balances • Finance/Insurance predominantly represented by secured lender finance portfolio • Senior Housing consists of 85% private pay facilities Diverse Industry Exposure Total C&I Portfolio $21.2 billion 16.0% 14.7% 6.7% 6.7% 6.5% 5.7% 5.6% 5.1% 5.1% 4.5% 4.5% 4.0% 3.6% 2.9% 2.1% 2.0% 1.9% 1.2% 1.2% Finance/Insurance Senior Housing Health Care Manufacturing Accom. & Food Svcs. Wholesale Trade R/E Other Retail Trade Construction Prof., Scientific, Tech. Svcs. Other Services Transport/Warehousing R/E Leasing All Other Arts, Entertainment, & Rec. Educational Svcs. Public Administration Ag, Forestry, Fishing Admin., Support, Waste Mgmt. Amounts may not total due to rounding; (1) These segments are not two digit NAICS industry divisions; Senior Housing is a subset of NAICS 62 Health Care and Social Assistance, and R/E other and R/E leasing together comprise NAICS 53 Real Estate, Rental, and Leasing. 19 (1) (1) (1)

 
Consumer Portfolio Credit Indicator 3Q22 NPL Ratio 0.49% Net Charge-off Ratio (annualized) 0.23% 30+ Days Past Due Ratio 0.45% 90+ Days Past Due Ratio 0.02% • 76% of Consumer portfolio is backed by residential real estate • Other Consumer includes secured and unsecured products • Average consumer card utilization rate is 22% Total Consumer Portfolio $9.1 billion Credit Indicator Home Equity Mortgage Weighted Average Credit Score of 3Q22 Originations 789 768 Weighted Average Credit Score of Total Portfolio 792 778 Weighted Average LTV(1) 73.6% 73.1% Average DTI(2) 34.2% 32.1% Utilization Rate 37.7% N/A 57.0% 18.8% 17.4% 4.6% 2.2% Consumer Mortgage Home Equity Third-Party Other Consumer Credit Card Amounts may not total due to rounding; (1) LTV is calculated by dividing the most recent appraisal value (typically at origination) by the sum of the 9/30/2022 commitment amount and any existing senior lien; (2) Average DTI of 3Q22 originations. Consumer Credit Quality 20

 
Third-Party Consumer 10.23% Core Transaction Deposits $1,721 $1,644 $1,618 $1,601 $1,580 $399 $642 $612 $841 $639 Held-for-Investment (HFI) Held-for-Sale (HFS) 3Q21 4Q21 1Q22 2Q22 3Q22 37% 10% 28% 24% Auto/RV/Marine Home Improvement Personal Student HFI Portfolio Composition 3Q22 ($ in millions) Auto/RV/ Marine Home Improvement Personal Student Loan Balance $590 $160 $447 $383 Weighted Avg. FICO Score 749 767 751 778 NPL Ratio 0.49% nm 0.26% 0.10% Net Charge-off Ratio (annualized) 0.78% nm 1.30% 0.34% 30+ Day Past Due Ratio 2.23% nm 0.69% 0.09% • Diversity among asset types; primarily fixed-rate loans • Credit Quality for HFI loans: ◦ Weighted Average FICO of 759 ◦ NPL Ratio of 0.28% ◦ Annualized Net Charge-off Ratio of 0.74% ◦ 30+ Day Past Due Ratio of 1.18% ($ in millions) 21Note: "nm" -- credit metrics not meaningful due to application of credit enhancements. Amounts may not total due to rounding.

 
Risk Distribution ($ in millions) Composition Change Risk Category 3Q22 2Q22 3Q22 vs. 2Q22 Passing Grades $41,643 $40,291 $1,352 Special Mention 389 392 (3) Substandard Accruing 418 413 5 Non-Performing Loans 122 109 13 Total Loans $42,572 $41,205 $1,367 Amounts may not total due to rounding. 22 $1,222 $1,028 $1,032 $914 $929 3.2% 2.6% 2.6% 2.2% 2.2% Criticized and Classified Loans % of Total Loans 3Q21 4Q21 1Q22 2Q22 3Q22 Portfolio Risk DistributionCriticized & Classified Loans

 
3Q21 4Q21 1Q22 2Q22 3Q22 Financial Performance Diluted EPS $1.21 $1.31 $1.11 $1.16 $1.33 Net interest margin 3.01% 2.96% 3.00% 3.22% 3.49% Efficiency ratio-TE 53.34% 57.85% 54.66% 53.87% 50.41% Adjusted tangible efficiency ratio(1) 52.96% 55.64% 55.50% 53.43% 49.98% ROAA(2) 1.34% 1.40% 1.22% 1.26% 1.39% Adjusted ROAA(1)(2) 1.33% 1.44% 1.19% 1.27% 1.39% Balance Sheet QoQ Growth Total loans —% 3% 2% 3% 3% Total deposits 1% 4% (2)% 1% (3)% Credit Quality NPA ratio 0.45% 0.40% 0.40% 0.33% 0.32% NCO ratio(2) 0.22% 0.11% 0.19% 0.16% 0.04% Capital Common shares outstanding(3) 145,484 145,010 145,335 145,358 145,443 Leverage ratio 8.78% 8.72% 8.87% 9.03% 9.04% Tangible common equity ratio(1) 7.68% 7.52% 6.80% 6.26% 5.52% Quarterly Highlights Trend (1) Non-GAAP financial measure; see applicable reconciliation; (2) Annualized; (3) In thousands; (4) Preliminary. (4) ©2022 Synovus. All Rights Reserved. 23 23

 
Condensed Income Statement ($ in thousands, except per share data) 3Q22 2Q22 3Q21 Net interest income $477,919 $425,388 $384,917 Non-interest revenue 104,298 97,266 114,955 Non-interest expense 294,010 282,051 267,032 Provision for (reversal of) credit losses 25,581 12,688 (7,868) Income before income taxes $262,626 $227,915 $240,708 Income tax expense 59,582 49,863 53,935 Preferred stock dividends 8,291 8,291 8,291 Net income available to common shareholders $194,753 $169,761 $178,482 Weighted average common shares outstanding, diluted 146,418 146,315 147,701 Net income per common share, diluted $1.33 $1.16 $1.21 24

 
($ in thousands, except per share data) 3Q22 2Q22 3Q21 Net income available to common shareholders $194,753 $169,761 $178,482 Add/subtract: Restructuring charges 956 (1,850) 319 Add/subtract: Investment securities losses (gains), net — — (962) Add: Valuation adjustment to Visa derivative — 3,500 — Add: Earnout liability adjustments — — (243) Add/subtract: Tax effect of adjustments(1) (228) (393) 164 Adjusted net income available to common shareholders $195,481 $171,018 $177,760 Weighted average common shares outstanding, diluted 146,418 146,315 147,701 Net income per common share, diluted $1.33 $1.16 $1.21 Adjusted net income per common share, diluted $1.34 $1.17 $1.20 Non-GAAP Financial Measures (1) An assumed marginal tax rate of 23.8% for 2022 and 25.3% for 2021 was applied. 25

 
Non-GAAP Financial Measures, Continued ($ in thousands) 3Q21 4Q21 1Q22 2Q22 3Q22 Net income $186,773 $200,401 $171,037 $178,052 $203,044 Add/subtract: Earnout liability adjustments (243) — — — — Add/subtract: Restructuring charges 319 5,958 (6,424) (1,850) 956 Add: Valuation adjustment to Visa derivative — 2,656 — 3,500 — Add: Loss on early extinguishment of debt — — 677 — — Add/subtract: Investment securities losses (gains), net (962) (230) — — — Add/subtract: Tax effect of adjustments(1) 164 (2,121) 1,369 (393) (228) Adjusted net income $186,051 $206,664 $166,659 $179,309 $203,772 Net income annualized $741,002 $795,069 $693,650 $714,165 $805,555 Adjusted net income annualized $738,137 $819,917 $675,895 $719,206 $808,443 Total average assets $55,326,260 $56,911,929 $56,855,898 $56,536,940 $58,055,979 Return on average assets 1.34% 1.40% 1.22% 1.26% 1.39% Adjusted return on average assets 1.33% 1.44% 1.19% 1.27% 1.39% (1) An assumed marginal tax rate of 23.8% for 2022 and 25.3% for 2021 was applied. 26

 
Non-GAAP Financial Measures, Continued ($ in thousands) 3Q22 2Q22 3Q21 Net income available to common shareholders $194,753 $169,761 $178,482 Add/subtract: Restructuring charges 956 (1,850) 319 Add: Valuation adjustment to Visa derivative — 3,500 — Subtract/add: Earnout liability adjustments — — (243) Add/subtract: Investment securities losses (gains), net — — (962) Add/subtract: Tax effect of adjustments(1) (228) (393) 164 Adjusted net income available to common shareholders $195,481 $171,018 $177,760 Adjusted net income available to common shareholders annualized $775,550 $685,951 $705,243 Add: Amortization of intangibles, annualized net of tax $6,401 $6,471 $7,050 Adjusted net income available to common shareholders excluding amortization of intangibles annualized $781,951 $692,422 $712,293 Net income available to common shareholders annualized $772,661 $680,910 $708,108 Add: Amortization of intangibles, annualized net of tax $6,401 $6,471 $7,050 Net income available to common shareholders excluding amortization of intangibles annualized $779,062 $687,381 $715,158 Total average shareholders' equity less preferred stock $4,141,516 $4,132,536 $4,734,754 Subtract: Goodwill $(452,390) $(452,390) $(452,390) Subtract: Other intangible assets, net $(30,214) $(32,387) $(39,109) Total average tangible shareholders' equity less preferred stock $3,658,912 $3,647,759 $4,243,255 Return on average common equity 18.66% 16.48% 14.96% Adjusted return on average common equity 18.73% 16.60% 14.90% Return on average tangible common equity 21.29% 18.84% 16.85% Adjusted return on average tangible common equity 21.37% 18.98% 16.79% (1) An assumed marginal tax rate of 23.8% for 2022 and 25.3% for 2021 was applied. 27

 
Non-GAAP Financial Measures, Continued ($ in thousands) 3Q22 2Q22 3Q21 Total non-interest revenue $104,298 $97,266 $114,955 Subtract/add: Investment securities (gains) losses, net — — (962) Subtract/add: Fair value adjustment on non-qualified deferred compensation 1,076 3,240 97 Adjusted non-interest revenue $105,374 $100,506 $114,090 28 ($ in thousands) 2021 Net interest income $1,532,947 Add: Tax equivalent adjustment 3,185 FTE net interest income 1,536,132 Total non-interest revenue 450,066 Subtract/add: Investment securities (gains) losses, net 799 Subtract/add: Fair value adjustment on non-qualified deferred compensation (2,816) Adjusted non-interest revenue 448,049 Adjusted revenue 1,984,181 Subtract: PPP revenue 94,733 Adjusted revenue x PPP revenue 1,889,448 Total non-interest expense 1,099,904 Subtract: Earning liability adjustments (507) Subtract: Restructuring charges (7,223) Subtract: Valuation adjustment to Visa derivative (2,656) Subtract/add: Fair value adjustment on non-qualified deferred compensation (2,816) Adjusted non-interest expense 1,086,702 Pre-provision net revenue (PPNR) 883,109 Adjusted PPNR x PPP revenue 802,746

 
Non-GAAP Financial Measures, Continued ($ in thousands) 3Q21 4Q21 1Q22 2Q22 3Q22 Total non-interest expense $267,032 $295,207 $272,450 $282,051 $294,010 Subtract/add: Earnout liability adjustments 243 — — — — Subtract/add: Restructuring charges (319) (5,958) 6,424 1,850 (956) Subtract/add: Fair value adjustment on non-qualified deferred compensation 97 (995) 1,295 3,240 1,076 Subtract: Valuation adjustment to Visa derivative — (2,656) — (3,500) — Subtract: Loss on early extinguishment of debt — — (677) — — Adjusted non-interest expense $267,053 $285,598 $279,492 $283,641 $294,130 Subtract: Amortization of intangibles (2,379) (2,379) (2,118) (2,118) (2,118) Adjusted tangible non-interest expense $264,674 $283,219 $277,374 $281,523 $292,012 Net interest income $384,917 $392,313 $392,248 $425,388 $477,919 Add: Tax equivalent adjustment 736 884 865 960 972 Add: Total non-interest revenue 114,955 117,068 105,334 97,266 104,298 Total TE revenue $500,608 $510,265 $498,447 $523,614 $583,189 Subtract/add: Investment securities losses (gains), net (962) (230) — — — Subtract/add: Fair value adjustment on non-qualified deferred compensation 97 (995) 1,295 3,240 1,076 Total adjusted revenue $499,743 $509,040 $499,742 $526,854 $584,265 Efficiency ratio-TE 53.3% 57.9% 54.7% 53.9% 50.4% Adjusted tangible efficiency ratio 53.0% 55.6% 55.5% 53.4% 50.0% 29

 
Non-GAAP Financial Measures, Continued ($ in thousands) 3Q21 4Q21 1Q22 2Q22 3Q22 Total assets $55,509,129 $57,317,226 $56,419,549 $57,382,745 $58,639,522 Subtract: Goodwill (452,390) (452,390) (452,390) (452,390) (452,390) Subtract: Other intangible assets, net (37,975) (35,596) (33,478) (31,360) (29,242) Tangible assets $55,018,764 $56,829,240 $55,933,681 $56,898,995 $58,157,890 Total shareholders’ equity $5,252,802 $5,296,800 $4,824,635 $4,584,438 $4,229,715 Subtract: Goodwill (452,390) (452,390) (452,390) (452,390) (452,390) Subtract: Other intangible assets, net (37,975) (35,596) (33,478) (31,360) (29,242) Subtract: Preferred Stock, no par value (537,145) (537,145) (537,145) (537,145) (537,145) Tangible common equity $4,225,292 $4,271,669 $3,801,622 $3,563,543 $3,210,938 Total shareholders’ equity to total assets ratio 9.46% 9.24% 8.55% 7.99% 7.21% Tangible common equity ratio 7.68% 7.52% 6.80% 6.26% 5.52% 30