Synovus announces earnings for the fourth quarter 2023

Rhea-AI Summary

Synovus Financial Corp. (NYSE: SNV) reported financial results for the quarter and year ended Dec. 31, 2023. The net income available to common shareholders for 2023 was $507.8 million, or $3.46 per diluted share, compared to $724.7 million, or $4.95 per diluted share in 2022. Adjusted EPS for 2023 was $4.12 per diluted share compared to $4.93 per diluted share in 2022. The $51 million FDIC special assessment incurred during the fourth quarter 2023 reduced reported and adjusted EPS by $0.26. The preliminary year-end CET1 ratio increased 59 basis points year over year to 10.22%. Synovus sold $422 million in third-party consumer loans and $1.2 billion in medical office building loans with the proceeds used to pay down wholesale borrowings. Period-end loans declined $311.9 million, or 1%, in 2023 as commercial and industrial growth was more than offset by declines in commercial real estate and consumer loans. Period-end deposits increased $1.87 billion, or 4%, primarily driven by growth in time deposits and interest-bearing demand deposits, partially offset by a decline in non-interest-bearing deposits. Non-interest expense was $1.34 billion, up 15%, and adjusted non-interest expense increased 9% year over year in 2023 to $1.26 billion, but was significantly impacted by the $51 million FDIC special assessment.

Positive

• None.

Negative

• Diluted earnings per share significantly declined from $1.35 in 4Q22 to $0.41 in 4Q23
• Net income available to common shareholders dropped from $197.5 million in 4Q22 to $60.6 million in 4Q23
• Adjusted non-interest expense increased 9% year over year in 2023 to $1.26 billion

Insights

Financial Analyst

The reported financial results from Synovus Financial Corp. indicate a notable decline in diluted earnings per share (EPS), from $1.35 in 4Q22 to $0.41 in 4Q23, with a similar reduction in adjusted diluted EPS. This decline in profitability is a critical metric for investors, as EPS is a direct indicator of a company's profitability on a per-share basis. The $51 million FDIC special assessment is a significant one-time expense that investors should consider when evaluating the company's underlying financial health, as it has materially impacted the reported and adjusted EPS. Additionally, the decline in net interest income and the increase in non-interest expense, particularly the FDIC special assessment, could be reflective of broader industry challenges such as increased regulatory costs and rising interest rates impacting funding costs.

Furthermore, the repositioning of the securities portfolio, resulting in $78 million in losses, is a strategic move that aims to improve future net interest income. This decision, while impacting short-term earnings, may be viewed favorably if it leads to improved yield on assets. However, the effectiveness of this strategy will depend on future interest rate movements and the performance of the reinvested assets. The increase in net interest income year-over-year, despite the sales of significant loan portfolios, suggests effective asset-liability management in a challenging rate environment. The growth in certain deposit categories, such as time deposits, indicates a strategic focus on stabilizing funding sources, which is crucial for maintaining liquidity and supporting lending activities.

Market Research Analyst

From a market perspective, the reported increase in fee income related to treasury and payment solutions, capital markets and wealth management signifies a diversification of revenue streams for Synovus, which can be a positive indicator for investors looking at the company's ability to generate revenue beyond traditional banking activities. The growth in adjusted non-interest revenue, particularly from banking as a service, suggests that Synovus is capitalizing on emerging trends in the financial services industry, such as the integration of banking services into non-financial platforms.

The strategic actions taken by Synovus to optimize its balance sheet, such as loan sales and the reduction of wholesale borrowings, demonstrate a proactive approach to risk management. The bank's focus on core deposit generation and lending diversification is a response to the evolving economic landscape, which has been characterized by volatility and uncertainty in recent years. These efforts can be seen as attempts to build a more resilient and balanced portfolio, which could be beneficial in the face of potential economic headwinds.

Economist

An economist might highlight the broader economic implications of Synovus' financial results. The increase in the provision for credit losses, from $84.6 million in the prior year to $189.1 million in 2023, suggests a more cautious outlook on loan performance and potential economic stress. This uptick is a prudent measure, reflecting the bank's anticipation of possible future credit challenges and aligns with the trend of financial institutions bolstering their reserves in uncertain economic times.

The reported credit quality ratios, such as the net charge-off ratio and the non-performing loan and asset ratios, provide insights into the health of the loan portfolio. The slight uptick in these ratios, while still within healthy ranges, may indicate early signs of stress in the loan portfolio. The bank's Common Equity Tier 1 (CET1) capital ratio, which increased to 10.22%, is a key regulatory measure that reflects the bank's capital strength and ability to absorb potential losses. This ratio being within the target range supports the bank's claim of resilience and suggests it is well-capitalized to withstand economic fluctuations.

Diluted earnings per share of $0.41 vs. $1.35 in 4Q22

Adjusted diluted earnings per share of $0.80 vs. $1.35 in 4Q22

$51 million FDIC special assessment reduced 4Q23 reported and adjusted EPS by $0.26

COLUMBUS, Ga.--(BUSINESS WIRE)-- Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter and year ended Dec. 31, 2023. “Synovus' 2023 financial performance is a testament to our resilience and the strength of our business model,” said Synovus Chairman, CEO and President Kevin Blair. “Amid a challenging economic landscape in 2023, we broadened client relationships, further diversified our business mix, streamlined expenses and took strategic actions to optimize the balance sheet. Our strong banking footprint and ongoing investments in talent, capabilities, functionalities and new revenue sources fuel the bank’s path to solid growth. We persist in bolstering our core deposit generation, enriching lending diversification, enhancing expense efficiency and delivering world-class client service. As we execute our plan, we're confident momentum will build throughout 2024 and beyond for Synovus.”

2023 Highlights

• Net income available to common shareholders for 2023 was $507.8 million, or $3.46 per diluted share, compared to $724.7 million, or $4.95 per diluted share in 2022. Adjusted EPS for 2023 was $4.12 per diluted share compared to $4.93 per diluted share in 2022.
• The $51 million FDIC special assessment incurred during the fourth quarter 2023 reduced reported and adjusted EPS by $0.26.
• Pre-provision net revenue was $885.2 million in 2023 compared to $1.05 billion in 2022.
• Net interest income was $1.82 billion in 2023, up from $1.80 billion in the prior year, largely attributable to average loan growth and higher earning asset yields, which combined to more than offset rising funding costs.
• During 2023, Synovus sold $422 million in third-party consumer loans and $1.2 billion in medical office building loans with the proceeds used to pay down wholesale borrowings.
• Period-end loans declined $311.9 million, or 1%, in 2023 as commercial and industrial growth was more than offset by declines in commercial real estate and consumer loans.
• Period-end deposits increased $1.87 billion, or 4%, primarily driven by growth in time deposits and interest-bearing demand deposits, partially offset by a decline in non-interest-bearing deposits. Brokered deposits increased $744.0 million, or 14%, in 2023.
• During the fourth quarter 2023, Synovus repositioned its securities portfolio by selling $1.3 billion of bonds, which resulted in securities losses of $78 million. The proceeds have been reinvested in other high-quality liquid assets with better yields, which should augment 2024 net interest income by an estimated $28 million.
• Non-interest revenue was $404.0 million, down 1% from 2022. Adjusted non-interest revenue of $460.7 million grew 11% in 2023, primarily attributable to fee income related to treasury and payment solutions, capital markets and wealth management, as well as fees from banking as a service.
• Non-interest expense was $1.34 billion, up 15%, and adjusted non-interest expense increased 9% year over year in 2023 to $1.26 billion, but was significantly impacted by the $51 million FDIC special assessment.
• Credit quality remains healthy. Net charge-offs were 0.35% of average loans or 0.28%, excluding the loan sales in the third quarter, compared to 0.13% in 2022. The provision for credit losses was $189.1 million in 2023 compared to a provision of $84.6 million for the prior year. The allowance for credit losses ended the year at 1.24% compared to 1.15% at the end of 2022.
• The preliminary year-end CET1 ratio increased 59 basis points year over year to 10.22%, which is within our target operating range of 10.00% to 10.50%.

Fourth Quarter 2023 Highlights

• Net income available to common shareholders was $60.6 million, or $0.41 per diluted share, down $0.19 sequentially and down $0.94 compared to the fourth quarter 2022.
• The $51 million FDIC special assessment impacted fourth quarter 2023 reported and adjusted EPS by $0.26.
• Pre-provision net revenue of $135.8 million declined $60.9 million, or 31%, sequentially and was down $159.0 million, or 54%, compared to the fourth quarter 2022.
• Net interest income declined $5.9 million, or 1%, compared to the prior quarter and was down $64.1 million, or 13%, compared to the fourth quarter 2022, primarily attributable to a decline in average earnings assets and higher funding costs. Net interest margin was 3.11%, which was stable from the third quarter supported by rising asset yields, lower than expected core interest-bearing deposit cost and a decline in borrowings.
• Period-end loans declined $275.4 million, or 1%, from the third quarter as core commercial lending growth was more than offset by softer overall loan production, higher loan paydowns and strategic declines in certain loan categories such as non-relationship syndicated lending and third-party consumer lending.
• Core deposits increased $714.1 million, or 2%, sequentially. Total deposits ended the quarter at $50.74 billion, an increase of $535.3 million, or 1%, sequentially as a result of the focus on deposit production and seasonally higher commercial deposits and public funds.
• Total deposit costs increased 19 basis points from the third quarter 2023 to 2.50%. The bank's total deposit beta cycle to date through the fourth quarter 2023 has been 45%.
• Non-interest revenue of $51.5 million declined $55.7 million, or 52.0%, sequentially and decreased $51.0 million, or 50%, compared to the fourth quarter 2022. Non-interest revenue was impacted by $78 million in securities losses. Adjusted non-interest revenue of $126.2 million rose $19.9 million, or 19%, sequentially and increased $25.3 million, or 25%, compared to the fourth quarter 2022. The growth was primarily attributable to higher GreenSky income as well as stronger treasury and payment solutions and non-GLOBALT wealth management fees.
• On a sequential quarter basis, non-interest expense of $352.9 million was flat while adjusted non-interest expense increased 15% to $353.1 million, and compared to the prior year, non-interest expense and adjusted non-interest expense were up 14% and 15%, respectively. All comparisons were significantly impacted by the $51 million FDIC special assessment. Headcount declined 2% sequentially and 5% year over year.
• Credit quality ratios remain healthy. The non-performing loan and asset ratios were slightly higher at 0.66% and 0.66%, respectively; the net charge-off ratio for the quarter was 0.38%, and total past dues were 0.14% of total loans outstanding.
• Provision for credit losses of $45.5 million declined $27.1 million sequentially and compares to $72.6 million in the third quarter of 2023.
• The allowance for credit losses ratio (to loans) of 1.24% was up 2 basis points sequentially and up 9 basis points compared to the prior year. The quarter over quarter increase primarily reflects loan performance during the fourth quarter.
• The preliminary CET1 ratio rose sequentially to 10.22% as core earnings accretion more than offset the impact of the $51 million FDIC special assessment and $78 million in securities losses during the fourth quarter.

Fourth Quarter 2023 Summary

	Reported												Adjusted
(dollars in thousands)		4Q23				3Q23				4Q22				4Q23				3Q23				4Q22
Net income available to common shareholders	$	60,645			$	87,423			$	197,479			$	116,901			$	122,770			$	197,576
Diluted earnings per share		0.41				0.60				1.35				0.80				0.84				1.35
Total revenue		488,682				550,298				603,785				564,593				550,552				603,359
Total loans		43,404,490				43,679,910				43,716,353				N/A				N/A				N/A
Total deposits		50,739,185				50,203,890				48,871,559				N/A				N/A				N/A
Return on avg assets		0.47	%			0.64	%			1.38	%			0.84	%			0.87	%			1.39	%
Return on avg common equity		5.9				8.2				20.9				11.3				11.5				20.9
Return on avg tangible common equity		7.0				9.7				24.2				13.3				13.5				24.2
Net interest margin		3.11	%			3.11	%			3.56	%			N/A				N/A				N/A
Efficiency ratio-TE(1)(2)		72.03				64.11				51.08				61.97				55.01				50.58
NCO ratio-QTD		0.38				0.61				0.12				N/A				N/A				N/A
NPA ratio		0.66				0.64				0.33				N/A				N/A				N/A
(1) Taxable equivalent (2) Adjusted tangible efficiency ratio

Balance Sheet

Loans*
(dollars in millions)		4Q23			3Q23		Linked Quarter Change				Linked Quarter % Change				4Q22		Year/Year Change				Year/Year % Change
Commercial & industrial	$	22,598.5		$	22,781.0		$	(182.5	)		(1	)%		$	22,066.7		$	531.8			2	%
Commercial real estate		12,316.8			12,394.9			(78.1	)		(1	)			12,650.3			(333.6	)		(3	)
Consumer		8,489.2			8,504.1			(14.9	)		—				8,999.4			(510.1	)		(6	)
Total loans	$	43,404.5		$	43,679.9		$	(275.4	)		(1	)%		$	43,716.4		$	(311.9	)		(1	)%
* Amounts may not total due to rounding

Deposits*
(dollars in millions)		4Q23			3Q23		Linked Quarter Change				Linked Quarter % Change				4Q22		Year/Year Change				Year/Year % Change
Non-interest-bearing DDA	$	11,801.2		$	12,395.1		$	(593.9	)		(5)%			$	14,574.5		$	(2,773.3	)		(19	)%
Interest-bearing DDA		6,541.0			6,276.1			264.9			4				5,761.4			779.6			14
Money market		10,819.7			10,786.3			33.5			—				12,480.7			(1,661.0	)		(13	)
Savings		1,062.6			1,132.5			(69.9	)		(6	)			1,396.4			(333.8	)		(24	)
Public funds		7,349.5			6,885.7			463.8			7				6,635.6			714.0			11
Time deposits		7,122.2			6,506.4			615.8			9				2,724.1			4,398.1			161
Brokered deposits		6,043.0			6,221.8			(178.8	)		(3	)			5,299.0			744.0			14
Total deposits	$	50,739.2		$	50,203.9		$	535.3			1	%		$	48,871.6		$	1,867.6			4	%
* Amounts may not total due to rounding

Income Statement Summary*
(in thousands, except per share data)		4Q23				3Q23			Linked Quarter Change				Linked Quarter % Change				4Q22			Year/Year Change				Year/Year % Change
Net interest income	$	437,214			$	443,159			$	(5,945	)		(1	)%		$	501,346			$	(64,132	)		(13	)%
Non-interest revenue		51,468				107,139				(55,671	)		(52	)			102,439				(50,971	)		(50	)
Non-interest expense		352,858				353,532				(674	)		—				308,996				43,862			14
Provision for (reversal of) credit losses		45,472				72,572				(27,100	)		(37	)			34,884				10,588			30
Income before taxes	$	90,352			$	124,194			$	(33,842	)		(27	)%		$	259,905			$	(169,553	)		(65	)%
Income tax expense		20,779				27,729				(6,950	)		(25	)			54,135				(33,356	)		(62	)
Net income		69,573				96,465				(26,892	)		(28	)			205,770				(136,197	)		(66	)
Less: Net income (loss) attributable to noncontrolling interest		(768	)			(630	)			(138	)		22				—				(768	)		nm
Net income attributable to Synovus Financial Corp.		70,341				97,095				(26,754	)		(28	)			205,770				(135,429	)		(66	)
Less: Preferred stock dividends		9,696				9,672				24			—				8,291				1,405			17
Net income available to common shareholders	$	60,645			$	87,423			$	(26,778	)		(31	)%		$	197,479			$	(136,834	)		(69	)%
Weighted average common shares outstanding, diluted		146,877				146,740				137			—				146,528				349			—
Diluted earnings per share	$	0.41			$	0.60			$	(0.19	)		(32	)%		$	1.35			$	(0.94	)		(70	)%
Adjusted diluted earnings per share	$	0.80			$	0.84			$	(0.04	)		(5	)		$	1.35			$	(0.55	)		(41	) %
Effective tax rate		23.00	%			22.33	%										20.83	%
* Amounts may not total due to rounding

Capital Ratios
	4Q23			3Q23			4Q22
Common equity Tier 1 capital (CET1) ratio	10.22	%	*	10.13	%		9.63	%
Tier 1 capital ratio	11.28		*	11.18			10.68
Total risk-based capital ratio	13.07		*	13.12			12.54
Tier 1 leverage ratio	9.49		*	9.38			9.07
Tangible common equity ratio	6.84			5.90			5.84
* Ratios are preliminary

Fourth Quarter 2023 Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. ET on Jan. 18, 2024. 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/events. 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 $60 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 246 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 X, formerly known as 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 intended strategies, initiatives, and other operational and execution goals; 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, 2022, 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 net income available to common shareholders; adjusted diluted earnings per share; adjusted non-interest revenue, adjusted non-interest expense; adjusted revenue; adjusted tangible efficiency ratio; 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 net income available to common shareholders; diluted earnings per share; total non-interest revenue; total non-interest expense; total revenue; efficiency ratio-TE; return on average assets; return on average common equity; and the ratio of total Synovus Financial Corp. 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 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. Adjusted non-interest revenue and adjusted revenue are measures used by management to evaluate non-interest revenue and total revenue exclusive of fair value adjustment on non-qualified deferred compensation and other items not indicative of ongoing operations that could impact period-to-period comparisons. 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. 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
(in thousands, except per share data)		4Q23				3Q23				4Q22				2023				2022
Adjusted net income available to common shareholders and adjusted net income per common share, diluted
Net income available to common shareholders	$	60,645			$	87,423			$	197,479			$	507,755			$	724,739
(Gain) on sale of GLOBALT		—				(1,929	)			—				(1,929	)			—
Restructuring charges (reversals)		1,231				17,319				(2,372	)			17,707				(9,690	)
Valuation adjustment to Visa derivative		—				900				2,500				3,927				6,000
(Gain) loss on early extinguishment of debt		(4,497	)			(526	)			—				(5,400	)			677
Recovery of NPA		—				—				—				(13,126	)			—
Loss on other loans held for sale		—				30,954				—				50,064				—
Investment securities (gains) losses, net		77,748				—				—				76,718				—
Tax effect of adjustments(1)		(18,226	)			(11,371	)			(31	)			(31,312	)			733
Adjusted net income available to common shareholders	$	116,901			$	122,770			$	197,576			$	604,404			$	722,459
Weighted average common shares outstanding, diluted		146,877				146,740				146,528				146,734				146,481
Net income per common share, diluted	$	0.41			$	0.60			$	1.35			$	3.46			$	4.95
Adjusted net income per common share, diluted		0.80				0.84				1.35				4.12				4.93
(1) An assumed marginal tax rate of 24.5% for 4Q23 and 2023 and 24.3% for 3Q23, 4Q22, and 2022 was applied.

Reconciliation of Non-GAAP Financial Measures, continued
(dollars in thousands)		4Q23				3Q23				4Q22				2023				2022
Adjusted non-interest revenue
Total non-interest revenue	$	51,468			$	107,139			$	102,439			$	404,010			$	409,336
(Gain) on sale of GLOBALT		—				(1,929	)			—				(1,929	)			—
Recovery of NPA		—				—				—				(13,126	)			—
Investment securities (gains) losses, net		77,748				—				—				76,718				—
Fair value adjustment on non-qualified deferred compensation		(3,053	)			1,035				(1,557	)			(4,987	)			4,054
Adjusted non-interest revenue	$	126,163			$	106,245			$	100,882			$	460,686			$	413,390
Adjusted non-interest expense
Total non-interest expense	$	352,858			$	353,532			$	308,996			$	1,335,424			$	1,157,506
(Loss) gain on other loans held for sale		—				(30,954	)			—				(50,064	)			—
Restructuring (charges) reversals		(1,231	)			(17,319	)			2,372				(17,707	)			9,690
Valuation adjustment to Visa derivative		—				(900	)			(2,500	)			(3,927	)			(6,000	)
Gain (loss) on early extinguishment of debt		4,497				526				—				5,400				(677	)
Fair value adjustment on non-qualified deferred compensation		(3,053	)			1,035				(1,557	)			(4,987	)			4,054
Adjusted non-interest expense	$	353,071			$	305,920			$	307,311			$	1,264,139			$	1,164,573

(dollars in thousands)		4Q23				3Q23				4Q22
Adjusted revenue and tangible efficiency ratio
Adjusted non-interest expense	$	353,071			$	305,920			$	307,311
Amortization of intangibles		(3,168	)			(3,042	)			(2,118	)
Adjusted tangible non-interest expense	$	349,903			$	302,878			$	305,193
Net interest income	$	437,214			$	443,159			$	501,346
Total non-interest revenue		51,468				107,139				102,439
Total revenue		488,682				550,298				603,785
Tax equivalent adjustment		1,216				1,148				1,131
Total TE revenue		489,898				551,446				604,916
(Gain) on sale of GLOBALT		—				(1,929	)			—
Recovery of NPA		—				—				—
Investment securities (gains) losses, net		77,748				—				—
Fair value adjustment on non-qualified deferred compensation		(3,053	)			1,035				(1,557	)
Adjusted revenue	$	564,593			$	550,552			$	603,359
Efficiency ratio-TE		72.03	%			64.11	%			51.08	%
Adjusted tangible efficiency ratio		61.97				55.01				50.58

Reconciliation of Non-GAAP Financial Measures, continued
(in thousands, except per share data)		4Q23				3Q23				4Q22
Adjusted return on average assets (annualized)
Net income	$	69,573			$	96,465			$	205,770
Loss on other loans held for sale		—				30,954				—
Restructuring charges (reversals)		1,231				17,319				(2,372	)
(Gain) on sale of GLOBALT		—				(1,929	)			—
Valuation adjustment to Visa derivative		—				900				2,500
(Gain) on early extinguishment of debt		(4,497	)			(526	)			—
Investment securities (gains) losses, net		77,748				—				—
Tax effect of adjustments(1)		(18,226	)			(11,371	)			(31	)
Adjusted net income	$	125,829			$	131,812			$	205,867
Net income annualized	$	276,023			$	382,714			$	816,370
Adjusted net income annualized	$	499,213			$	522,950			$	816,755
Total average assets	$	59,164,065			$	59,916,679			$	58,963,417
Return on average assets (annualized)		0.47	%			0.64	%			1.38	%
Adjusted return on average assets (annualized)		0.84				0.87				1.39
(1) An assumed marginal tax rate of 24.5% for 4Q23 and 24.3% for both 3Q23 and 4Q22 was applied.

Reconciliation of Non-GAAP Financial Measures, continued
(dollars in thousands)		4Q23				3Q23				4Q22
Adjusted return on average common equity, return on average tangible common equity, and adjusted return on average tangible common equity (annualized)
Net income available to common shareholders	$	60,645			$	87,423			$	197,479
Loss on other loans held for sale		—				30,954				—
Restructuring charges (reversals)		1,231				17,319				(2,372	)
(Gain) on sale of GLOBALT		—				(1,929	)			—
Valuation adjustment to Visa derivative		—				900				2,500
(Gain) on early extinguishment of debt		(4,497	)			(526	)			—
Subtract/add: Investment securities (gains) losses, net		77,748				—				—
Subtract/add: Tax effect of adjustments(1)		(18,226	)			(11,371	)			(31	)
Adjusted net income available to common shareholders	$	116,901			$	122,770			$	197,576
Adjusted net income available to common shareholders annualized	$	463,792			$	487,077			$	783,861
Amortization of intangibles, tax effected, annualized		9,493				9,131				6,358
Adjusted net income available to common shareholders excluding amortization of intangibles annualized	$	473,285			$	496,208			$	790,219
Net income available to common shareholders annualized	$	240,602			$	346,841			$	783,476
Amortization of intangibles, tax effected, annualized		9,493				9,131				6,358
Net income available to common shareholders excluding amortization of intangibles annualized	$	250,095			$	355,972			$	789,834
Total average Synovus Financial Corp. shareholders' equity less preferred stock	$	4,090,163			$	4,223,422			$	3,742,927
Average goodwill		(479,858	)			(476,408	)			(452,390	)
Average other intangible assets, net		(47,502	)			(59,016	)			(28,174	)
Total average Synovus Financial Corp. tangible shareholders' equity less preferred stock	$	3,562,803			$	3,687,998			$	3,262,363
Return on average common equity (annualized)		5.9	%			8.2	%			20.9	%
Adjusted return on average common equity (annualized)		11.3				11.5				20.9
Return on average tangible common equity (annualized)		7.0				9.7				24.2
Adjusted return on average tangible common equity (annualized)		13.3				13.5				24.2
(1) An assumed marginal tax rate of 24.5% for 4Q23 and 24.3% for both 3Q23 and 4Q22 was applied.

Reconciliation of Non-GAAP Financial Measures, continued
	December 31,				September 30,				December 31,
(dollars in thousands)		2023				2023				2022
Tangible common equity ratio
Total assets	$	59,809,534			$	59,342,930			$	59,731,378
Goodwill		(480,440	)			(479,851	)			(452,390	)
Other intangible assets, net		(45,928	)			(49,096	)			(27,124	)
Tangible assets	$	59,283,166			$	58,813,983			$	59,251,864
Total Synovus Financial Corp. shareholders' equity	$	5,119,993			$	4,536,958			$	4,475,801
Goodwill		(480,440	)			(479,851	)			(452,390	)
Other intangible assets, net		(45,928	)			(49,096	)			(27,124	)
Preferred stock, no par value		(537,145	)			(537,145	)			(537,145	)
Tangible common equity	$	4,056,480			$	3,470,866			$	3,459,142
Total Synovus Financial Corp. shareholders’ equity to total assets ratio		8.56	%			7.65	%			7.49	%
Tangible common equity ratio		6.84				5.90				5.84

Synovus
	INCOME STATEMENT DATA
	(Unaudited)		Years Ended
	(Dollars in thousands, except per share data)		December 31,
				2023				2022			% Change
	Interest income		$	3,050,358			$	2,075,787			47	%
	Interest expense			1,233,703				278,887			342
	Net interest income			1,816,655				1,796,900			1
	Provision for (reversal of) credit losses			189,079				84,553			124
	Net interest income after provision for credit losses			1,627,576				1,712,347			(5	)
	Non-interest revenue:
	Service charges on deposit accounts			90,096				93,067			(3	)
	Fiduciary and asset management fees			78,077				78,414			—
	Card fees			72,357				61,833			17
	Brokerage revenue			83,431				67,034			24
	Mortgage banking income			15,157				17,476			(13	)
	Capital markets income			32,181				26,702			21
	Income from bank-owned life insurance			31,429				29,720			6
	Investment securities gains (losses), net			(76,718	)			—			nm
	Recovery of NPA			13,126				—			nm
	Other non-interest revenue			64,874				35,090			85
	Total non-interest revenue			404,010				409,336			(1	)
	Non-interest expense:
	Salaries and other personnel expense			728,378				681,710			7
	Net occupancy, equipment, and software expense			179,581				174,730			3
	Third-party processing and other services			86,649				88,617			(2	)
	Professional fees			39,854				37,189			7
	FDIC insurance and other regulatory fees			94,737				29,083			226
	Restructuring charges (reversals)			17,707				(9,690	)		(283	)
	Loss on other loans held for sale			50,064				—			nm
	Other operating expenses			138,454				155,867			(11	)
	Total non-interest expense			1,335,424				1,157,506			15
	Income before income taxes			696,162				964,177			(28	)
	Income tax expense			154,021				206,275			(25	)
	Net income			542,141				757,902			(28	)
	Less: Net income (loss) attributable to noncontrolling interest			(1,564	)			—			nm
	Net income attributable to Synovus Financial Corp.			543,705				757,902			(28	)
	Less: Preferred stock dividends			35,950				33,163			8
	Net income available to common shareholders		$	507,755			$	724,739			(30	)%
	Net income per common share, basic			3.48				4.99			(30	)%
	Net income per common share, diluted			3.46				4.95			(30	)
	Cash dividends declared per common share			1.52				1.36			12
	Return on average assets			0.90	%			1.32	%		(42)	bps
	Return on average common equity			12.17				17.41			(524	)
	Weighted average common shares outstanding, basic			146,115				145,364			1	%
	Weighted average common shares outstanding, diluted			146,734				146,481			—
	nm - not meaningful
	bps - basis points

Synovus
	INCOME STATEMENT DATA
	(Unaudited)
	(Dollars in thousands, except per share data)	2023													2022			Fourth Quarter
		Fourth Quarter				Third Quarter			Second Quarter			First Quarter			Fourth Quarter			23 vs '22
																		% Change
	Interest income	$	788,297			786,039			759,143			716,879			654,654			20	%
	Interest expense		351,083			342,880			303,612			236,128			153,308			129
	Net interest income		437,214			443,159			455,531			480,751			501,346			(13	)
	Provision for (reversal of) credit losses		45,472			72,572			38,881			32,154			34,884			30
	Net interest income after provision for credit losses		391,742			370,587			416,650			448,597			466,462			(16	)
	Non-interest revenue:
	Service charges on deposit accounts		22,260			21,385			23,477			22,974			23,639			(6	)
	Fiduciary and asset management fees		18,149			20,205			20,027			19,696			18,836			(4	)
	Card fees		20,872			18,602			17,059			15,824			15,887			31
	Brokerage revenue		19,727			20,237			20,908			22,558			19,996			(1	)
	Mortgage banking income		3,019			3,671			4,609			3,858			2,554			18
	Capital markets income		5,104			6,377			6,975			13,725			6,998			(27	)
	Income from bank-owned life insurance		10,324			6,965			6,878			7,262			7,206			43
	Investment securities gains (losses), net		(77,748	)		—			—			1,030			—			nm
	Recovery of NPA		—			—			—			13,126			—			nm
	Other non-interest revenue		29,761			9,697			12,343			13,073			7,323			306
	Total non-interest revenue		51,468			107,139			112,276			133,126			102,439			(50	)
	Non-interest expense:
	Salaries and other personnel expense		176,712			179,741			183,001			188,924			182,629			(3	)
	Net occupancy, equipment, and software expense		48,146			45,790			42,785			42,860			45,192			7
	Third-party processing and other services		21,717			21,439			21,659			21,833			23,130			(6	)
	Professional fees		11,147			10,147			9,597			8,963			11,096			—
	FDIC insurance and other regulatory fees		61,470			11,837			11,162			10,268			8,232			647
	Restructuring charges (reversals)		1,231			17,319			(110	)		(733	)		(2,372	)		(152	)
	Loss on other loans held for sale		—			30,954			2,360			16,750			—			nm
	Other operating expenses		32,435			36,305			36,727			32,987			41,089			(21	)
	Total non-interest expense		352,858			353,532			307,181			321,852			308,996			14
	Income before income taxes		90,352			124,194			221,745			259,871			259,905			(65	)
	Income tax expense		20,779			27,729			47,801			57,712			54,135			(62	)
	Net income		69,573			96,465			173,944			202,159			205,770			(66	)
	Less: Net income (loss) attributable to noncontrolling		(768	)		(630	)		(166	)		—			—			nm
	Net income attributable to Synovus Financial Corp.		70,341			97,095			174,110			202,159			205,770			(66	)
	Less: Preferred stock dividends		9,696			9,672			8,291			8,291			8,291			17
	Net income available to common shareholders	$	60,645			87,423			165,819			193,868			197,479			(69	)
	Net income per common share, basic	$	0.41			0.60			1.13			1.33			1.36			(69	)%
	Net income per common share, diluted		0.41			0.60			1.13			1.32			1.35			(69	)
	Cash dividends declared per common share		0.38			0.38			0.38			0.38			0.34			12
	Return on average assets *		0.47	%		0.64			1.15			1.36			1.38			(91)	bps
	Return on average common equity *		5.88			8.21			15.45			19.23			20.93			nm
	Weighted average common shares outstanding, basic		146,372			146,170			146,113			145,799			145,467			1	%
	Weighted average common shares outstanding, diluted		146,877			146,740			146,550			146,727			146,528			—
	nm - not meaningful
	bps - basis points
	* - ratios are annualized

Synovus
	BALANCE SHEET DATA		December 31, 2023				September 30, 2023				December 31, 2022
	(Unaudited)
	(In thousands, except share data)
	ASSETS
	Cash and due from banks		$	601,188			$	604,631			$	624,097
	Interest-bearing funds with Federal Reserve Bank			1,741,059				1,431,356				1,280,684
	Interest earning deposits with banks			71,856				65,468				34,632
	Federal funds sold and securities purchased under resale agreements			37,323				36,176				38,367
	Cash and cash equivalents			2,451,426				2,137,631				1,977,780
	Investment securities available for sale, at fair value			9,788,662				9,237,191				9,678,103
	Loans held for sale ($47,338, $48,994 and $51,136 measured at fair value, respectively)			52,768				66,558				391,502
	Loans, net of deferred fees and costs			43,404,490				43,679,910				43,716,353
	Allowance for loan losses			(479,385	)			(477,532	)			(443,424	)
	Loans, net			42,925,105				43,202,378				43,272,929
	Cash surrender value of bank-owned life insurance			1,112,030				1,107,092				1,089,280
	Premises, equipment, and software, net			365,851				364,054				370,632
	Goodwill			480,440				479,851				452,390
	Other intangible assets, net			45,928				49,096				27,124
	Other assets			2,587,324				2,699,079				2,471,638
	Total assets		$	59,809,534			$	59,342,930			$	59,731,378
	LIABILITIES AND SHAREHOLDERS' EQUITY
	Liabilities:
	Deposits:
	Non-interest-bearing deposits		$	12,507,616			$	12,976,574			$	15,639,899
	Interest-bearing deposits			38,231,569				37,227,316				33,231,660
	Total deposits			50,739,185				50,203,890				48,871,559
	Federal funds purchased and securities sold under repurchase agreements			189,074				98,270				146,588
	Other short-term borrowings			3,496				2,362				603,384
	Long-term debt			1,932,534				2,704,701				4,109,597
	Other liabilities			1,801,097				1,772,139				1,524,449
	Total liabilities			54,665,386				54,781,362				55,255,577
	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 171,360,188, 170,859,506, and 170,141,492 respectively; outstanding 146,705,330, 146,204,648, and 145,486,634 respectively			171,360				170,860				170,141
	Additional paid-in capital			3,955,819				3,940,507				3,920,346
	Treasury stock, at cost – 24,654,858 shares			(944,484	)			(944,484	)			(944,484	)
	Accumulated other comprehensive income (loss), net			(1,117,073	)			(1,679,404	)			(1,442,117	)
	Retained earnings			2,517,226				2,512,334				2,234,770
	Total Synovus Financial Corp. shareholders' equity			5,119,993				4,536,958				4,475,801
	Noncontrolling interest in subsidiary			24,155				24,610				—
	Total equity			5,144,148				4,561,568				4,475,801
	Total liabilities and shareholders' equity		$	59,809,534			$	59,342,930			$	59,731,378

Synovus
AVERAGE BALANCES, INTEREST, AND YIELDS/RATES
(Unaudited)
	2023										2022
(dollars in thousands)	Average Balance				Interest			Yield/ Rate			Average Balance				Interest			Yield/ Rate
Assets
Interest earning assets:
Commercial loans (1) (2) (3)	$	35,188,678			$	2,263,117		6.43	%		$	32,402,218			$	1,448,463		4.47	%
Consumer loans (1) (2)		8,557,650				426,266		4.98				8,823,424				361,524		4.10
Less: Allowance for loan losses		(463,493	)									(421,506	)			—		—
Loans, net		43,282,835				2,689,383		6.21				40,804,136				1,809,987		4.44
Investment securities available for sale		11,212,956				248,294		2.21				11,208,886				209,951		1.87
Trading account assets		15,486				886		5.72				13,374				261		1.95
Other earning assets(4)		1,414,586				71,349		4.98				1,220,653				18,756		1.52
FHLB and Federal Reserve Bank stock		254,420				14,975		5.89				214,289				6,722		3.14
Mortgage loans held for sale		46,035				2,993		6.50				75,325				3,353		4.45
Other loans held for sale		469,689				27,099		5.69				682,961				30,684		4.43
Total interest earning assets		56,696,007			$	3,054,979		5.39	%			54,219,624			$	2,079,714		3.84	%
Cash and due from banks		575,370										574,250
Premises and equipment		367,159										385,622
Other real estate		—										6,356
Cash surrender value of bank-owned life insurance		1,099,641										1,078,653
Other assets(5)		1,183,691										1,345,568
Total assets	$	59,921,868									$	57,610,073
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits	$	9,884,039			$	176,595		1.79	%		$	9,027,636			$	25,912		0.29	%
Money market accounts		13,511,442				356,562		2.64				15,385,765				79,567		0.52
Savings deposits		1,229,975				1,046		0.09				1,481,372				399		0.03
Time deposits		5,473,405				196,481		3.59				2,667,101				13,902		0.52
Brokered deposits		6,104,461				296,071		4.85				3,644,957				67,452		1.85
Federal funds purchased and securities sold under repurchase agreements		97,114				1,667		1.69				205,753				1,308		0.63
Other short-term borrowings		528,194				24,611		4.60				466,254				10,945		2.32
Long-term debt		3,027,746				180,670		5.92				1,999,595				79,402		3.95
Total interest-bearing liabilities		39,856,376			$	1,233,703		3.10	%			34,878,433			$	278,887		0.80	%
Non-interest-bearing demand deposits		13,662,660										16,731,967
Other liabilities		1,671,489										1,298,972
Shareholders' equity		4,731,343										4,700,701
Total liabilities and shareholders' equity	$	59,921,868									$	57,610,073
Net interest income, taxable equivalent net interest margin (6)					$	1,821,276		3.21	%						$	1,800,827		3.32	%
Less: taxable-equivalent adjustment						4,621										3,927
Net interest income					$	1,816,655									$	1,796,900

(1)	Average loans are shown net of deferred fees and costs. NPLs are included.
(2)	Interest income includes net loan fees as follows: 2023 — $47.7 million and 2022 — $57.3 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 $(1.62) billion and $(985.6) million for the years ended December 31, 2023 and 2022, respectively.
(6)	The net interest margin is calculated by dividing net interest income-taxable equivalent by average total interest earning assets.

Synovus
AVERAGE BALANCES, INTEREST, AND YIELDS/RATES
(Unaudited)
	Fourth Quarter 2023										Third Quarter 2023										Fourth Quarter 2022
(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)	$	35,106,156			$	590,588		6.67	%		$	34,990,459			$	579,177		6.57	%		$	34,103,384			$	474,439		5.52	%
Consumer loans (1) (2)		8,491,244				109,509		5.14				8,509,757				108,065		5.06				9,041,520				101,905		4.50
Less: Allowance for loan losses		(480,332	)									(461,385	)									(427,525	)
Loans, net		43,117,068				700,097		6.45				43,038,831				687,242		6.34				42,717,379				576,344		5.36
Investment securities available for sale		11,164,487				65,176		2.33				11,194,291				61,642		2.20				11,296,449				58,840		2.08
Trading account assets		13,067				215		6.59				16,186				237		5.86				15,552				68		1.75
Other earning assets(4)		1,463,176				19,689		5.26				1,237,445				16,369		5.17				1,148,099				10,490		3.58
FHLB and Federal Reserve Bank stock		187,015				3,536		7.56				244,906				3,783		6.18				270,822				2,805		4.14
Mortgage loans held for sale		39,024				696		7.14				53,904				879		6.52				46,240				688		5.95
Other loans held for sale		8,044				104		5.06				881,067				17,035		7.57				514,811				6,550		4.98
Total interest earning assets		55,991,881			$	789,513		5.59	%			56,666,630			$	787,187		5.51	%			56,009,352			$	655,785		4.65	%
Cash and due from banks		522,986										509,511										651,189
Premises and equipment		366,647										365,568										375,352
Other real estate		—										—										—
Cash surrender value of bank-owned life insurance		1,108,766										1,102,626										1,085,394
Other assets(5)		1,173,785										1,272,344										842,130
Total assets	$	59,164,065									$	59,916,679									$	58,963,417
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits	$	10,422,286			$	58,588		2.23	%		$	10,114,171			$	52,983		2.08	%		$	8,627,386			$	14,160		0.65	%
Money market accounts		13,053,781				103,211		3.14				13,147,465				95,339		2.88				14,771,308				46,671		1.25
Savings deposits		1,098,914				275		0.10				1,178,322				280		0.09				1,450,153				176		0.05
Time deposits		7,198,229				75,462		4.16				6,180,584				59,972		3.85				2,567,979				7,648		1.18
Brokered deposits		6,069,055				81,444		5.32				6,442,690				83,486		5.14				4,986,542				39,500		3.14
Federal funds purchased and securities sold under repurchase agreements		93,854				350		1.46				73,344				296		1.58				141,707				437		1.21
Other short-term borrowings		2,672				51		7.50				1,722				—		—				660,295				6,383		3.78
Long-term debt		1,922,661				31,702		6.55				3,230,374				50,524		6.18				3,446,306				38,333		4.39
Total interest-bearing liabilities		39,861,452			$	351,083		3.49	%			40,368,672			$	342,880		3.37	%			36,651,676			$	153,308		1.66	%
Non-interest-bearing demand deposits		12,744,275										13,049,343										16,569,275
Other liabilities		1,906,686										1,713,131										1,462,394
Shareholders' equity		4,651,652										4,785,533										4,280,072
Total liabilities and shareholders' equity	$	59,164,065									$	59,916,679									$	58,963,417
Net interest income, taxable equivalent net interest margin (6)					$	438,430		3.11	%						$	444,307		3.11	%						$	502,477		3.56	%
Less: taxable-equivalent adjustment						1,216										1,148										1,131
Net interest income					$	437,214									$	443,159									$	501,346

(1)	Average loans are shown net of deferred fees and costs. NPLs are included.
(2)	Interest income includes net loan fees as follows: Fourth Quarter 2023 — $13.1 million, Third Quarter 2023 — $11.8 million, and Fourth Quarter 2022 —$11.9 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 $(1.89) billion, $(1.60) billion, and $(1.69) billion for the Fourth Quarter 2023, Third Quarter 2023, and Fourth Quarter 2022, respectively.
(6)	The net interest margin is calculated by dividing annualized net interest income-taxable equivalent by average total interest earning assets.

Synovus
LOANS OUTSTANDING BY TYPE
(Unaudited)
(Dollars in thousands)
		Total Loans			Total Loans			Linked Quarter			Total Loans			Year/Year
Loan Type		December 31, 2023			September 30, 2023			% Change			December 31, 2022			% Change
Commercial, Financial, and Agricultural		$	14,459,345		$	14,498,966		—	%		$	13,874,416		4	%
Owner-Occupied			8,139,148			8,281,988		(2	)			8,192,240		(1	)
Total Commercial & Industrial			22,598,493			22,780,954		(1	)			22,066,656		2
Multi-Family			4,098,188			3,930,617		4				3,134,571		31
Hotels			1,803,102			1,790,094		1				1,708,194		6
Office Buildings			1,891,587			1,911,095		(1	)			3,011,911		(37	)
Shopping Centers			1,319,049			1,327,770		(1	)			1,403,928		(6	)
Warehouses			854,475			985,723		(13	)			1,035,152		(17	)
Other Investment Property			1,396,903			1,432,456		(2	)			1,350,291		3
Total Investment Properties			11,363,304			11,377,755		—				11,644,047		(2	)
1-4 Family Construction			194,481			224,091		(13	)			229,263		(15	)
1-4 Family Investment Mortgage			404,021			396,813		2				387,670		4
Total 1-4 Family Properties			598,502			620,904		(4	)			616,933		(3	)
Commercial Development			73,022			64,212		14				79,889		(9	)
Residential Development			79,961			92,209		(13	)			108,661		(26	)
Land Acquisition			201,969			239,773		(16	)			200,783		1
Land and Development			354,952			396,194		(10	)			389,333		(9	)
Total Commercial Real Estate			12,316,758			12,394,853		(1	)			12,650,313		(3	)
Consumer Mortgages			5,411,723			5,391,282		—				5,214,443		4
Home Equity Lines			1,807,399			1,784,356		1				1,757,038		3
Credit Cards			194,141			191,046		2				203,612		(5	)
Other Consumer Loans			1,075,976			1,137,419		(5	)			1,824,291		(41	)
Total Consumer			8,489,239			8,504,103		—				8,999,384		(6	)
Total		$	43,404,490		$	43,679,910		(1	)		$	43,716,353		(1	)
NON-PERFORMING LOANS COMPOSITION
(Unaudited)
(Dollars in thousands)
		Total Non-performing Loans			Total Non-performing Loans			Linked Quarter			Total Non-performing Loans			Year/Year
Loan Type		December 31, 2023			September 30, 2023			% Change			December 31, 2022			% Change
Commercial, Financial, and Agricultural		$	89,870		$	97,468		(8	)		$	59,307		52	%
Owner-Occupied			91,370			84,505		8				10,104		nm
Total Commercial & Industrial			181,240			181,973		—				69,411		161
Multi-Family			1,681			1,702		(1	)			1,857		(9	)
Office Buildings			35,338			27,810		27				309		nm
Shopping Centers			641			653		(2	)			735		(13	)
Warehouses			196			207		(5	)			223		(12	)
Other Investment Property			1,914			572		235				349		448
Total Investment Properties			39,770			30,944		29				3,473		nm
1-4 Family Construction			—			—		nm				55		(100	)
1-4 Family Investment Mortgage			3,056			3,386		(10	)			3,067		—
Total 1-4 Family Properties			3,056			3,386		(10	)			3,122		(2	)
Commercial Development			—			—		nm				—		nm
Residential Development			267			267		—				267		—
Land Acquisition			537			538		—				891		(40	)
Land and Development			804			805		—				1,158		(31	)
Total Commercial Real Estate			43,630			35,135		24				7,753		463
Consumer Mortgages			46,108			43,863		5				36,847		25
Home Equity Lines			10,473			11,620		(10	)			6,830		53
Other Consumer Loans			6,726			7,941		(15	)			7,220		(7	)
Total Consumer			63,307			63,424		—				50,897		24
Total		$	288,177		$	280,532		3	%		$	128,061		125	%

Synovus
	CREDIT QUALITY DATA
	(Unaudited)
	(Dollars in thousands)		2023										2022		Fourth
															Quarter
			Fourth				Third		Second		First		Fourth		23 vs '22
			Quarter				Quarter		Quarter		Quarter		Quarter		% Change
	Non-performing Loans (NPL)		$	288,177			280,532		261,506		182,460		128,061		125	%
	Other Real Estate and Other Assets			—			—		—		—		15,320		(100	)
	Non-performing Assets (NPAs)			288,177			280,532		261,506		182,460		143,381		101
	Allowance for Loan Losses (ALL)			479,385			477,532		471,238		457,010		443,424		8
	Reserve for Unfunded Commitments			57,230			55,185		55,729		57,473		57,455		—
	Allowance for Credit Losses (ACL)			536,615			532,717		526,967		514,483		500,879		7
	Net Charge-Offs - Quarter			41,574			66,822		26,396		18,550		13,300
	Net Charge-Offs - YTD			153,342			111,768		44,946		18,550		53,156
	Net Charge-Offs / Average Loans - Quarter (1)			0.38	%		0.61		0.24		0.17		0.12
	Net Charge-Offs / Average Loans - YTD (1)			0.35			0.34		0.20		0.17		0.13
	NPLs / Loans			0.66			0.64		0.59		0.41		0.29
	NPAs / Loans, ORE and specific other assets			0.66			0.64		0.59		0.41		0.33
	ACL/Loans			1.24			1.22		1.19		1.17		1.15
	ALL/Loans			1.10			1.09		1.06		1.04		1.01
	ACL/NPLs			186.21			189.90		201.51		281.97		391.13
	ALL/NPLs			166.35			170.22		180.20		250.47		346.26
	Past Due Loans over 90 days and Still Accruing		$	5,053			3,792		3,643		3,529		3,373		50
	As a Percentage of Loans Outstanding			0.01	%		0.01		0.01		0.01		0.01
	Total Past Due Loans and Still Accruing		$	59,099			54,974		84,946		55,053		65,568		(10	)
	As a Percentage of Loans Outstanding			0.14	%		0.13		0.19		0.12		0.15
	(1) Ratio is annualized.
	SELECTED CAPITAL INFORMATION (1)
	(Unaudited)
	(Dollars in thousands)
			December 31, 2023				September 30, 2023		December 31, 2022
	Common Equity Tier 1 Capital Ratio			10.22	%		10.13		9.63
	Tier 1 Capital Ratio			11.28			11.18		10.68
	Total Risk-Based Capital Ratio			13.07			13.12		12.54
	Tier 1 Leverage Ratio			9.49			9.38		9.07
	Total Synovus Financial Corp. shareholders’ equity as a Percentage of Total Assets			8.56			7.65		7.49
	Tangible Common Equity Ratio(2)(4)			6.84			5.90		5.84
	Book Value Per Common Share(3)		$	31.24			27.36		27.07
	Tangible Book Value Per Common Share(2)			27.65			23.74		23.78
	(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 Synovus Financial Corp. shareholders' equity less Preferred Stock divided by total common shares outstanding.
	(4) See "Non-GAAP Financial Measures" for applicable reconciliation.

 

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Media Contact

Audria Belton

Media Relations

media@synovus.com

Investor Contact

Jennifer H. Demba, CFA

Investor Relations

investorrelations@synovus.com

Source: Synovus Financial Corp.

FAQ

What was Synovus' net income available to common shareholders for 2023?

The net income available to common shareholders for 2023 was $507.8 million.

What was the diluted earnings per share for 2023?

The diluted earnings per share for 2023 was $3.46.

What was the impact of the $51 million FDIC special assessment on the reported and adjusted EPS in the fourth quarter of 2023?

The $51 million FDIC special assessment reduced reported and adjusted EPS by $0.26.

What was the year-end CET1 ratio for 2023?

The preliminary year-end CET1 ratio increased 59 basis points year over year to 10.22%.

What was the change in period-end loans in 2023?

Period-end loans declined $311.9 million, or 1%, in 2023.