Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Synovus announces earnings for the second quarter 2023 By: Synovus Financial Corp. via Business Wire July 19, 2023 at 17:38 PM EDT Diluted earnings per share of $1.13 vs. $1.16 in 2Q22 Adjusted diluted earnings per share of $1.16 vs. $1.17 in 2Q22 Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended June 30, 2023. “Our second quarter financial performance reflects the strength and resiliency of our team, with pre-provision net revenue growing 8% year over year and adjusted return on tangible common equity at 18%,” said Synovus Chairman, CEO and President Kevin Blair. “Strong deposit production, increased capital levels and stability in credit metrics, as we saw during the second quarter, all serve as mitigants to the risks of an environment with heightened levels of volatility and uncertainty. And as we position the company for sustainable, long-term growth, we’re proactively optimizing the balance sheet, we’ve adjusted revenue expectations in response to slower economic growth trends and deposit remixing, and we’ve significantly reduced expense growth. Even as we execute amid lingering challenging market conditions, we remain fully dedicated to providing reliable and innovative financial solutions to our clients. Their trust and confidence in our institution have been paramount to our growth and sustained performance.” Second Quarter 2023 Highlights Total revenue of $567.8 million increased $45.2 million, or 9%, compared to the second quarter 2022, driven by net interest income growth of 7%, in addition to growth in core client fee income, excluding mortgage, of 7% year-over-year. Pre-provision net revenue of $260.6 million increased $20.0 million, or 8%, compared to the second quarter 2022. Period-end loans increased $308.6 million sequentially, primarily driven by fundings of existing CRE commitments and growth in consumer loans, somewhat offset by lower utilization from C&I commitments. Total deposits increased $126.5 million sequentially and included remixing due to the rate environment. Credit quality metrics at solid levels with a net charge-off ratio of 0.24%, a modest increase in the ACL ratio to 1.19%, and broader stable performance across the loan portfolio, asset types, and industries. Preliminary CET1 ratio of 9.85% increased 8 bps sequentially as capital generation continued to support client loan growth while also buffering capital levels given economic uncertainty. Second Quarter Summary Reported Adjusted (dollars in thousands) 2Q23 1Q23 2Q22 2Q23 1Q23 2Q22 Net income available to common shareholders $ 165,819 $ 193,868 $ 169,761 $ 169,526 $ 195,276 $ 171,018 Diluted earnings per share 1.13 1.32 1.16 1.16 1.33 1.17 Total revenue 567,807 613,877 522,654 567,347 599,469 526,854 Total loans 44,353,537 44,044,939 41,204,780 N/A N/A N/A Total deposits 50,080,392 49,953,936 49,034,700 N/A N/A N/A Return on avg assets 1.15 % 1.36 % 1.26 % 1.18 % 1.37 % 1.27 % Return on avg common equity 15.5 19.2 16.5 15.8 19.4 16.6 Return on avg tangible common equity 17.7 21.9 18.8 18.1 22.1 19.0 Net interest margin 3.20 3.43 3.22 N/A N/A N/A Efficiency ratio-TE(1)(2) 53.99 52.33 53.87 52.57 50.48 53.43 NCO ratio-QTD 0.24 0.17 0.16 N/A N/A N/A NPA ratio 0.59 0.41 0.33 N/A N/A N/A (1) Taxable equivalent (2) Adjusted tangible efficiency ratio Balance Sheet Loans* (dollars in millions) 2Q23 1Q23 Linked Quarter Change Linked Quarter % Change 2Q22 Year/Year Change Year/Year % Change Commercial & industrial $ 22,531.2 $ 22,600.2 $ (68.9 ) — % $ 20,778.3 $ 1,752.9 8 % Commercial real estate 13,293.9 12,996.8 297.1 2 11,503.4 1,790.5 16 Consumer 8,528.4 8,448.0 80.4 1 8,923.0 (394.6 ) (4 ) Total loans $ 44,353.5 $ 44,044.9 $ 308.6 1 % $ 41,204.8 $ 3,148.8 8 % *Amounts may not total due to rounding Total loans ended the quarter at $44.35 billion, up $308.6 million sequentially. Commercial and industrial (C&I) loans decreased $68.9 million sequentially, primarily driven by lower utilization from existing commitments and a strategic decline in syndicated loans. CRE loans increased $297.1 million sequentially, mostly due to draws on existing multi-family commitments and continued low levels of pay-offs. Consumer loans increased $80.4 million sequentially, largely a result of growth in portfolio mortgages somewhat offset by continued third-party decline from runoff. Deposits* (dollars in millions) 2Q23 1Q23 Linked Quarter Change Linked Quarter % Change 2Q22 Year/Year Change Year/Year % Change Non-interest-bearing DDA $ 12,945.5 $ 13,827.6 $ (882.0 ) (6 )% $ 15,781.1 $ (2,835.6 ) (18 )% Interest-bearing DDA 6,255.3 5,841.0 414.3 7 6,327.1 (71.7 ) (1 ) Money market 10,803.7 11,776.0 (972.3 ) (8 ) 13,793.0 (2,989.3 ) (22 ) Savings 1,222.9 1,312.7 (89.8 ) (7 ) 1,498.7 (275.9 ) (18 ) Public funds 7,031.4 6,888.2 143.2 2 5,863.9 1,167.5 20 Time deposits 5,291.8 4,060.3 1,231.5 30 2,147.8 3,144.1 146 Brokered deposits 6,529.8 6,248.3 281.5 5 3,623.1 2,906.7 80 Total deposits $ 50,080.4 $ 49,953.9 $ 126.5 — % $ 49,034.7 $ 1,045.7 2 % *Amounts may not total due to rounding Total deposits ended the quarter at $50.08 billion, up $126.5 million sequentially Money market deposits were primarily impacted by the continued shifting to time deposits. Non-interest-bearing DDAs were impacted by pressures from seasonal cash deployment of excess funds and continued pressures from the higher rate environment. Total deposit costs increased 51 bps sequentially to 1.95% and were impacted by the anticipated pricing lags on core interest-bearing deposits (excludes brokered deposits) as well as the decline in non-interest-bearing DDAs. Income Statement Summary** (in thousands, except per share data) 2Q23 1Q23 Linked Quarter Change Linked Quarter % Change 2Q22 Year/Year Change Year/Year % Change Net interest income $ 455,531 $ 480,751 $ (25,220 ) (5 )% $ 425,388 $ 30,143 7 % Non-interest revenue 112,276 133,126 (20,850 ) (16 ) 97,266 15,010 15 Non-interest expense 307,181 321,852 (14,671 ) (5 ) 282,051 25,130 9 Provision for (reversal of) credit losses 38,881 32,154 6,727 21 12,688 26,193 206 Income before taxes $ 221,745 $ 259,871 $ (38,126 ) (15 )% $ 227,915 $ (6,170 ) (3 )% Income tax expense 47,801 57,712 (9,911 ) (17 ) 49,863 (2,062 ) (4 ) Net income 173,944 202,159 (28,215 ) (14 ) 178,052 (4,108 ) (2 ) Less: Net income (loss) attributable to noncontrolling interest (166 ) — (166 ) NM — (166 ) NM Net income attributable to Synovus Financial Corp. 174,110 202,159 (28,049 ) (14 ) 178,052 (3,942 ) (2 ) Less: Preferred stock dividends 8,291 8,291 — — 8,291 — — Net income available to common shareholders $ 165,819 $ 193,868 $ (28,049 ) (14 )% $ 169,761 $ (3,942 ) (2 )% Weighted average common shares outstanding, diluted 146,550 146,727 (177 ) — % 146,315 235 — % Diluted earnings per share $ 1.13 $ 1.32 $ (0.19 ) (14 ) $ 1.16 $ (0.03 ) (3 ) Adjusted diluted earnings per share 1.16 1.33 (0.17 ) (13 ) 1.17 (0.01 ) (1 ) Effective tax rate 21.56 % 22.21 % 21.88 % ** Amounts may not total due to rounding Core Performance Net interest income of $455.5 million was down $25.2 million sequentially, or 5%, and increased $30.1 million, or 7%, compared to the second quarter 2022. The quarter-over-quarter decline was largely driven by increases in deposit costs and negative re- mixing in non-interest-bearing DDA deposits partially offset by higher asset yields and earning asset growth. Net interest margin was 3.20%, down 23 bps sequentially, impacted by the same factors mentioned above. The year-over-year increase resulted primarily from loan growth and interest rate increases somewhat offset by higher deposit costs and negative remixing from non-interest DDA deposits. Non-interest revenue decreased $20.9 million, or 16%, sequentially and increased $15.0 million, or 15%, compared to the second quarter 2022. Adjusted non-interest revenue decreased $6.9 million, or 6%, sequentially and increased $10.2 million, or 10%, compared to the second quarter 2022. The quarter-over-quarter decrease was impacted by the prior quarter's $13.1 million one-time benefit from the recovery of a non-performing asset related to the regulatory approval of our Qualpay investment and strong growth in capital markets income in the first quarter 2023, which normalized this quarter. The year-over-year increase primarily related to higher wealth revenue from diverse sources including fees from short-term liquidity management products and a $7 million write-down in the second quarter 2022 on a minority tech investment. Non-interest expense decreased $14.7 million, or 5%, sequentially and increased $25.1 million, or 9%, compared to the second quarter 2022. Adjusted non-interest expense decreased $3.8 million, or 1%, sequentially and increased $17.0 million, or 6%, compared to the second quarter 2022. The quarter-over-quarter decrease was largely due to the previous quarter's $16.8 million loss associated with the move of third-party consumer loans to held for sale in addition to seasonally elevated personnel expense in the first quarter 2023. The year-over-year increase primarily resulted from new business initiatives and infrastructure investments as well as investments in our workforce and higher FDIC insurance and healthcare costs. Overall credit performance and the credit quality of our recent originations was solid. The non-performing loan and asset ratios both moved to 0.59%; the net charge-off ratio for the quarter was 0.24%, and total past dues were 0.19% of total loans outstanding. Provision for credit losses of $38.9 million increased $6.7 million sequentially and increased $26.2 million compared to the second quarter 2022. Drivers of the quarter-over-quarter increase included higher net charge-offs and a modest increase of 2 bps in the allowance for credit losses coverage ratio (to loans). Drivers of the year-over-year increase largely included an 8 bps increase in the allowance for credit losses coverage ratio (to loans), which resulted from deterioration in forecasted economic scenarios mostly offset by continued solid loan portfolio performance, and higher net charge-offs. Capital Ratios 2Q23 1Q23 2Q22 Common equity Tier 1 capital (CET1) ratio 9.85 % * 9.77 % 9.46 % Tier 1 capital ratio 10.88 * 10.81 10.56 Total risk-based capital ratio 12.79 * 12.72 12.43 Tier 1 leverage ratio 9.23 * 9.14 9.03 Tangible common equity ratio 6.17 6.12 6.26 * Ratios are preliminary. Capital Preliminary CET1 ratio improved 8 bps during the quarter to 9.85%, and the preliminary total risk-based capital ratio of 12.79% increased 7 bps from the previous quarter as core earnings continued to support capital generation. Second Quarter Earnings Conference Call Synovus will host an earnings highlights conference call at 8:30 a.m. ET on July 20, 2023. 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 $61 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 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, 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 non-interest revenue, non-interest expense; adjusted revenue; adjusted tangible efficiency ratio; adjusted net income available to common shareholders; adjusted diluted earnings per share; adjusted return on average assets; adjusted return on average common equity; return on average tangible common equity; adjusted return on average tangible common equity; and tangible common equity ratio are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are total non-interest revenue; total non-interest expense; total revenue; 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 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 non-interest revenue and adjusted revenue are measures used by management to evaluate non-interest revenue and total revenue revenue exclusive of net investment securities gains (losses), 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. 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) 2Q23 1Q23 2Q22 Adjusted non-interest revenue Total non-interest revenue $ 112,276 $ 133,126 $ 97,266 Investment securities (gains) losses, net — (1,030 ) — Recovery of NPA — (13,126 ) — Fair value adjustment on non-qualified deferred compensation (1,598 ) (1,371 ) 3,240 Adjusted non-interest revenue $ 110,678 $ 117,599 $ 100,506 Adjusted non-interest expense Total non-interest expense $ 307,181 $ 321,852 $ 282,051 (Loss) gain on other loans held for sale (2,360 ) (16,750 ) — Gain (loss) on early extinguishment of debt 377 — — Restructuring (charges) reversals 110 733 1,850 Valuation adjustment to Visa derivative (3,027 ) — (3,500 ) Fair value adjustment on non-qualified deferred compensation (1,598 ) (1,371 ) 3,240 Adjusted non-interest expense $ 300,683 $ 304,464 $ 283,641 Reconciliation of Non-GAAP Financial Measures, continued (dollars in thousands) 2Q23 1Q23 2Q22 Adjusted revenue and tangible efficiency ratio Adjusted non-interest expense $ 300,683 $ 304,464 $ 283,641 Amortization of intangibles (2,420 ) (1,857 ) (2,118 ) Adjusted tangible non-interest expense $ 298,263 $ 302,607 $ 281,523 Net interest income $ 455,531 $ 480,751 $ 425,388 Total non-interest revenue 112,276 133,126 97,266 Total revenue $ 567,807 $ 613,877 $ 522,654 Tax equivalent adjustment 1,138 1,119 960 Total TE revenue 568,945 614,996 523,614 Recovery of NPA — (13,126 ) — Investment securities losses (gains), net — (1,030 ) — Fair value adjustment on non-qualified deferred compensation (1,598 ) (1,371 ) 3,240 Adjusted revenue $ 567,347 $ 599,469 $ 526,854 Efficiency ratio-TE 53.99 % 52.33 % 53.87 % Adjusted tangible efficiency ratio 52.57 50.48 53.43 Adjusted return on average assets Net income $ 173,944 $ 202,159 $ 178,052 Recovery of NPA — (13,126 ) — Loss (gain) on other loans held for sale 2,360 16,750 — (Gain) loss on early extinguishment of debt (377 ) — — Restructuring charges (reversals) (110 ) (733 ) (1,850 ) Valuation adjustment to Visa derivative 3,027 — 3,500 Investment securities losses (gains), net — (1,030 ) — Tax effect of adjustments(1) (1,193 ) (453 ) (393 ) Adjusted net income $ 177,651 $ 203,567 $ 179,309 Net income annualized $ 697,687 $ 819,867 $ 714,165 Adjusted net income annualized $ 712,556 $ 825,577 $ 719,206 Total average assets $ 60,515,077 $ 60,133,561 $ 56,536,940 Return on average assets 1.15 % 1.36 % 1.26 % Adjusted return on average assets 1.18 1.37 1.27 Adjusted net income available to common shareholders and adjusted diluted earnings per share Net income available to common shareholders $ 165,819 $ 193,868 $ 169,761 Recovery of NPA — (13,126 ) — Loss (gain) on other loans held for sale 2,360 16,750 — (Gain) loss on early extinguishment of debt (377 ) — — Restructuring charges (reversals) (110 ) (733 ) (1,850 ) Valuation adjustment to Visa derivative 3,027 — 3,500 Investment securities losses (gains), net — (1,030 ) — Tax effect of adjustments(1) (1,193 ) (453 ) (393 ) Adjusted net income available to common shareholders $ 169,526 $ 195,276 $ 171,018 Weighted average common shares outstanding, diluted 146,550 146,727 146,315 Diluted earnings per share $ 1.13 $ 1.32 $ 1.16 Adjusted diluted earnings per share 1.16 1.33 1.17 Reconciliation of Non-GAAP Financial Measures, continued (dollars in thousands) 2Q23 1Q23 2Q22 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 $ 165,819 $ 193,868 $ 169,761 Recovery of NPA — (13,126 ) — Loss (gain) on other loans held for sale 2,360 16,750 — (Gain) loss on early extinguishment of debt (377 ) — — Restructuring charges (reversals) (110 ) (733 ) (1,850 ) Valuation adjustment to Visa derivative 3,027 — 3,500 Investment securities losses (gains), net — (1,030 ) — Tax effect of adjustments(1) (1,193 ) (453 ) (393 ) Adjusted net income available to common shareholders $ 169,526 $ 195,276 $ 171,018 Adjusted net income available to common shareholders annualized $ 679,967 $ 791,953 $ 685,951 Amortization of intangibles, tax effected, annualized 7,344 5,699 6,471 Adjusted net income available to common shareholders excluding amortization of intangibles annualized $ 687,311 $ 797,652 $ 692,422 Net income available to common shareholders annualized $ 665,098 $ 786,242 $ 680,910 Amortization of intangibles, tax effected, annualized 7,344 5,699 6,471 Net income available to common shareholders excluding amortization of intangibles annualized $ 672,442 $ 791,941 $ 687,381 Total average Synovus Financial Corp. shareholders' equity less preferred stock $ 4,303,722 $ 4,088,777 $ 4,132,536 Average goodwill (460,118 ) (452,390 ) (452,390 ) Average other intangible assets, net (36,738 ) (26,245 ) (32,387 ) Total average Synovus Financial Corp. tangible shareholders' equity less preferred stock $ 3,806,866 $ 3,610,142 $ 3,647,759 Return on average common equity 15.5 % 19.2 % 16.5 % Adjusted return on average common equity 15.8 19.4 16.6 Return on average tangible common equity 17.7 21.9 18.8 Adjusted return on average tangible common equity 18.1 22.1 19.0 (dollars in thousands) June 30, 2023 December 31, 2022 June 30, 2022 Tangible common equity ratio Total assets $ 60,655,591 $ 59,731,378 $ 57,382,745 Goodwill (475,573 ) (452,390 ) (452,390 ) Other intangible assets, net (61,538 ) (27,124 ) (31,360 ) Tangible assets $ 60,118,480 $ 59,251,864 $ 56,898,995 Total Synovus Financial Corp. shareholders’ equity $ 4,782,528 $ 4,475,801 $ 4,584,438 Goodwill (475,573 ) (452,390 ) (452,390 ) Other intangible assets, net (61,538 ) (27,124 ) (31,360 ) Preferred Stock, no par value (537,145 ) (537,145 ) (537,145 ) Tangible common equity $ 3,708,272 $ 3,459,142 $ 3,563,543 Total Synovus Financial Corp. shareholders’ equity to total assets ratio 7.88 % 7.49 % 7.99 % Tangible common equity ratio 6.17 5.84 6.26 (1) An assumed marginal tax rate of 24.3% for 2Q23 and 1Q23 and 23.8% for 2Q22 was applied. Amounts may not total due to rounding Synovus INCOME STATEMENT DATA (Unaudited) (Dollars in thousands, except per share data) Six Months Ended June 30, 2023 2022 23 vs '22 % Change Interest income $ 1,476,022 $ 869,834 70 % Interest expense 539,739 52,199 934 Net interest income 936,283 817,635 15 Provision for (reversal of) credit losses 71,035 24,088 195 Net interest income after provision for credit losses 865,248 793,547 9 Non-interest revenue: Service charges on deposit accounts 46,451 46,030 1 Fiduciary and asset management fees 39,723 40,377 (2 ) Card fees 32,884 30,846 7 Brokerage revenue 43,466 29,898 45 Mortgage banking income 8,467 9,857 (14 ) Capital markets income 20,700 12,864 61 Income from bank-owned life insurance 14,140 15,722 (10 ) Investment securities gains (losses), net 1,030 — nm Recovery of NPA 13,126 — nm Other non-interest revenue 25,415 17,006 49 Total non-interest revenue 245,402 202,600 21 Non-interest expense: Salaries and other personnel expense 371,926 325,747 14 Net occupancy, equipment, and software expense 85,645 86,076 (1 ) Third-party processing and other services 43,493 42,947 1 Professional fees 18,560 19,338 (4 ) FDIC insurance and other regulatory fees 21,429 13,144 63 Restructuring charges (reversals) (843 ) (8,274 ) nm Loss on other loans held for sale 19,110 — nm Other operating expenses 69,714 75,523 (8 ) Total non-interest expense 629,034 554,501 13 Income before income taxes 481,616 441,646 9 Income tax expense 105,513 92,558 14 Net income 376,103 349,088 8 Less: Net income attributable to noncontrolling interest (166 ) — nm Net income attributable to Synovus Financial Corp. 376,269 349,088 8 Less: Preferred stock dividends 16,581 16,581 — Net income available to common shareholders $ 359,688 $ 332,507 8 % Net income per common share, basic $ 2.46 $ 2.29 8 % Net income per common share, diluted 2.45 2.27 8 Cash dividends declared per common share 0.76 0.68 12 Return on average assets * 1.26 % 1.24 % 2 bps Return on average common equity * 17.28 15.28 200 Weighted average common shares outstanding, basic 145,957 145,301 — % Weighted average common shares outstanding, diluted 146,644 146,489 — nm - not meaningful bps - basis points * - ratios are annualized Amounts may not total due to rounding Synovus INCOME STATEMENT DATA (Unaudited) (Dollars in thousands, except per share data) 2023 2022 Second Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter '23 vs '22 % Change Interest income $ 759,143 716,879 654,654 551,299 453,772 67 % Interest expense 303,612 236,128 153,308 73,380 28,384 970 Net interest income 455,531 480,751 501,346 477,919 425,388 7 Provision for (reversal of) credit losses 38,881 32,154 34,884 25,581 12,688 206 Net interest income after provision for credit losses 416,650 448,597 466,462 452,338 412,700 1 Non-interest revenue: Service charges on deposit accounts 23,477 22,974 23,639 23,398 23,491 — Fiduciary and asset management fees 20,027 19,696 18,836 19,201 20,100 — Card fees 17,059 15,824 15,887 15,101 16,089 6 Brokerage revenue 20,908 22,558 19,996 17,140 15,243 37 Mortgage banking income 4,609 3,858 2,554 5,065 3,904 18 Capital markets income 6,975 13,725 6,998 6,839 7,393 (6 ) Income from bank-owned life insurance 6,878 7,262 7,206 6,792 9,165 (25 ) Investment securities gains (losses), net — 1,030 — — — nm Recovery of NPA — 13,126 — — — nm Other non-interest revenue 12,343 13,073 7,323 10,762 1,881 556 Total non-interest revenue 112,276 133,126 102,439 104,298 97,266 15 Non-interest expense: Salaries and other personnel expense 183,001 188,924 182,629 173,334 161,063 14 Net occupancy, equipment, and software expense 42,785 42,860 45,192 43,462 43,199 (1 ) Third-party processing and other services 21,659 21,833 23,130 22,539 21,952 (1 ) Professional fees 9,597 8,963 11,096 6,755 10,865 (12 ) FDIC insurance and other regulatory fees 11,162 10,268 8,232 7,707 6,894 62 Restructuring charges (reversals) (110 ) (733 ) (2,372 ) 956 (1,850 ) (94 ) Loss on other loans held for sale 2,360 16,750 — — — nm Other operating expenses 36,727 32,987 41,089 39,257 39,928 (8 ) Total non-interest expense 307,181 321,852 308,996 294,010 282,051 9 Income before income taxes 221,745 259,871 259,905 262,626 227,915 (3 ) Income tax expense 47,801 57,712 54,135 59,582 49,863 (4 ) Net income 173,944 202,159 205,770 203,044 178,052 (2 ) Less: Net income attributable to noncontrolling interest (166 ) — — — — nm Net income attributable to Synovus Financial Corp. 174,110 202,159 205,770 203,044 178,052 (2 ) Less: Preferred stock dividends 8,291 8,291 8,291 8,291 8,291 — Net income available to common shareholders $ 165,819 193,868 197,479 194,753 169,761 (2 )% Net income per common share, basic $ 1.13 1.33 1.36 1.34 1.17 (3 )% Net income per common share, diluted 1.13 1.32 1.35 1.33 1.16 (3 ) Cash dividends declared per common share 0.38 0.38 0.34 0.34 0.34 12 Return on average assets * 1.15 % 1.36 1.38 1.39 1.26 (11) bps Return on average common equity * 15.45 19.23 20.93 18.66 16.48 (103 ) Weighted average common shares outstanding, basic 146,113 145,799 145,467 145,386 145,328 1 % Weighted average common shares outstanding, diluted 146,550 146,727 146,528 146,418 146,315 — nm - not meaningful bps - basis points * - ratios are annualized Amounts may not total due to rounding Synovus BALANCE SHEET DATA June 30, 2023 December 31, 2022 June 30, 2022 (Unaudited) (In thousands, except share data) ASSETS Cash and due from banks $ 576,148 $ 624,097 $ 583,323 Interest-bearing funds with Federal Reserve Bank 1,391,961 1,280,684 1,023,030 Interest earning deposits with banks 50,254 34,632 29,139 Federal funds sold and securities purchased under resale agreements 35,788 38,367 29,568 Cash, cash equivalents, and restricted cash 2,054,151 1,977,780 1,665,060 Investment securities available for sale, at fair value 9,621,175 9,678,103 9,889,850 Loans held for sale (includes $62,616, $51,136 and $76,864 measured at fair value, respectively) 514,450 391,502 917,679 Loans, net of deferred fees and costs 44,353,537 43,716,353 41,204,780 Allowance for loan losses (471,238 ) (443,424 ) (407,837 ) Loans, net 43,882,299 43,272,929 40,796,943 Cash surrender value of bank-owned life insurance 1,100,114 1,089,280 1,078,703 Premises, equipment, and software, net 365,443 370,632 383,060 Goodwill 475,573 452,390 452,390 Other intangible assets, net 61,538 27,124 31,360 Other assets 2,580,848 2,471,638 2,167,700 Total assets $ 60,655,591 $ 59,731,378 $ 57,382,745 LIABILITIES AND EQUITY Liabilities: Deposits: Non-interest-bearing deposits $ 13,565,602 $ 15,639,899 $ 16,876,710 Interest-bearing deposits 36,514,790 33,231,660 32,157,990 Total deposits 50,080,392 48,871,559 49,034,700 Federal funds purchased and securities sold under repurchase agreements 83,384 146,588 345,242 Other short-term borrowings 1,461 603,384 255,018 Long-term debt 4,021,411 4,109,597 1,804,104 Other liabilities 1,661,175 1,524,449 1,359,243 Total liabilities 55,847,823 55,255,577 52,798,307 Equity: 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 170,808,134, 170,141,492 and 170,012,527 respectively; outstanding 146,153,276, 145,486,634 and 145,357,669 respectively 170,808 170,141 170,013 Additional paid-in capital 3,933,548 3,920,346 3,908,118 Treasury stock, at cost; 24,654,858 shares (944,484 ) (944,484 ) (944,484 ) Accumulated other comprehensive income (loss), net (1,395,175 ) (1,442,117 ) (1,026,705 ) Retained earnings 2,480,686 2,234,770 1,940,351 Total Synovus Financial Corp. shareholders’ equity 4,782,528 4,475,801 4,584,438 Noncontrolling interest in subsidiary 25,240 — — Total equity 4,807,768 4,475,801 4,584,438 Total liabilities and equity $ 60,655,591 $ 59,731,378 $ 57,382,745 Synovus AVERAGE BALANCES, INTEREST, AND YIELDS/RATES (Unaudited) Second Quarter 2023 First Quarter 2023 Second 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) $ 35,628,637 $ 566,823 6.38 % $ 35,030,809 $ 526,529 6.10 % $ 31,870,387 $ 308,442 3.88 % Consumer loans (1) (2) 8,470,478 104,545 4.94 8,762,631 104,147 4.78 8,720,488 83,826 3.86 Less: Allowance for loan losses (466,700 ) — — (445,192 ) — — (415,372 ) — — Loans, net 43,632,415 671,368 6.17 43,348,248 630,676 5.89 40,175,503 392,268 3.92 Investment securities available for sale 11,200,717 60,421 2.16 11,293,958 61,054 2.16 11,153,091 50,312 1.81 Trading account assets 21,328 309 5.80 11,338 124 4.39 11,987 73 2.44 Other earning assets(4) 1,446,425 18,081 4.95 1,513,800 17,212 4.55 813,028 1,660 0.81 FHLB and Federal Reserve Bank stock 280,248 4,301 6.14 306,935 3,355 4.37 179,837 1,820 4.05 Mortgage loans held for sale 54,603 852 6.24 36,497 566 6.20 85,299 921 4.32 Other loans held for sale 546,224 4,949 3.58 443,690 5,011 4.52 725,762 7,678 4.19 Total interest earning assets 57,181,960 $ 760,281 5.33 % 56,954,466 $ 717,998 5.11 % 53,144,507 $ 454,732 3.43 % Cash and due from banks 646,066 643,502 538,647 Premises and equipment 369,039 370,275 385,457 Other real estate — — 11,439 Cash surrender value of bank-owned life insurance 1,095,866 1,091,080 1,077,231 Other assets(5) 1,222,146 1,074,238 1,379,659 Total assets $ 60,515,077 $ 60,133,561 $ 56,536,940 Liabilities and Equity Interest-bearing liabilities: Interest-bearing demand deposits $ 9,891,375 $ 41,803 1.70 % $ 9,091,166 $ 23,221 1.04 % $ 9,513,334 $ 3,598 0.15 % Money market accounts 13,468,210 85,397 2.54 14,395,050 72,615 2.05 15,328,395 6,850 0.18 Savings deposits 1,276,040 281 0.09 1,370,173 211 0.06 1,506,195 72 0.02 Time deposits 4,866,221 39,551 3.26 3,601,288 21,496 2.42 2,829,684 1,688 0.24 Brokered deposits 6,342,751 74,748 4.73 5,553,970 56,392 4.12 2,878,536 6,293 0.88 Federal funds purchased and securities sold under repurchase agreements 88,591 351 1.57 133,360 670 2.01 246,737 219 0.35 Other short-term borrowings 455,050 5,566 4.84 1,677,519 18,994 4.53 480,999 896 0.74 Long-term debt 3,821,126 55,915 5.82 3,148,062 42,529 5.41 878,413 8,768 3.99 Total interest-bearing liabilities 40,209,364 $ 303,612 3.03 % 38,970,588 $ 236,128 2.46 % 33,662,293 $ 28,384 0.33 % Non-interest-bearing demand deposits 13,874,482 15,014,224 16,959,850 Other liabilities 1,556,863 1,522,827 1,245,116 Total equity 4,874,368 4,625,922 4,669,681 Total liabilities and equity $ 60,515,077 $ 60,133,561 $ 56,536,940 Net interest income and net interest margin, taxable equivalent (6) $ 456,669 3.20 % $ 481,870 3.43 % $ 426,348 3.22 % Less: taxable-equivalent adjustment 1,138 1,119 960 Net interest income $ 455,531 $ 480,751 $ 425,388 (1) Average loans are shown net of deferred fees and costs. NPLs are included. (2) Interest income includes net loan fees as follows: Second Quarter 2023 — $11.3 million, First Quarter 2023 — $11.5 million, and Second Quarter 2022 — $13.0 million. (3) Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans 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 $(1.46) billion, $(1.52) billion, and $(923.1) million for the Second Quarter 2023, First Quarter 2023, and Second 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 AVERAGE BALANCES, INTEREST, AND YIELDS/RATES (Unaudited) Six Months Ended June 30, 2023 2022 (dollars in thousands) Average Balance Interest Yield/ Rate Average Balance Interest Yield/ Rate Assets Interest earning assets: Commercial loans (1) (2) (3) $ 35,331,375 $ 1,093,352 6.24 % $ 31,316,646 $ 589,029 3.79 % Consumer loans (1) (2) 8,615,748 208,693 4.87 8,657,598 165,194 3.83 Less: Allowance for loan losses (456,005 ) (419,639 ) Loans, net 43,491,118 1,302,045 6.03 39,554,605 754,223 3.84 Investment securities available for sale 11,247,080 121,475 2.16 11,206,150 97,562 1.74 Trading account assets 16,360 434 5.30 10,540 112 2.13 Other earning assets(4) 1,479,926 35,292 4.74 1,363,223 2,475 0.36 FHLB and Federal Reserve Bank stock 293,518 7,656 5.22 170,006 2,505 2.95 Mortgage loans held for sale 45,600 1,418 6.22 94,542 1,803 3.81 Other loans held for sale 495,240 9,960 4.00 661,768 12,978 3.90 Total interest earning assets 57,068,842 $ 1,478,280 5.22 % 53,060,834 $ 871,658 3.31 % Cash and due from banks 644,791 543,638 Premises and equipment 369,654 392,079 Other real estate — 11,598 Cash surrender value of bank-owned life insurance 1,093,486 1,074,076 Other assets(5) 1,148,600 1,613,313 Total assets $ 60,325,373 $ 56,695,538 Liabilities and Equity Interest-bearing liabilities: Interest-bearing demand deposits $ 9,493,481 $ 65,024 1.38 % $ 9,531,330 $ 5,970 0.13 % Money market accounts 13,929,069 158,012 2.29 15,685,030 12,199 0.16 Savings deposits 1,322,846 491 0.07 1,483,547 139 0.02 Time deposits 4,237,249 61,047 2.91 2,919,242 3,826 0.26 Brokered deposits 5,950,539 131,141 4.44 2,833,580 10,026 0.71 Federal funds purchased and securities sold under repurchase agreements 110,852 1,021 1.83 220,689 230 0.21 Other short-term borrowings 1,062,908 24,559 4.60 244,202 896 0.73 Long-term debt 3,486,453 98,444 5.63 930,131 18,913 4.07 Total interest-bearing liabilities 39,593,397 $ 539,739 2.75 % 33,847,751 $ 52,199 0.31 % Non-interest-bearing demand deposits 14,441,205 16,727,040 Other liabilities 1,539,939 1,195,043 Total equity 4,750,832 4,925,704 Total liabilities and equity $ 60,325,373 $ 56,695,538 Net interest income, taxable equivalent net interest margin (6) $ 938,541 3.32 % $ 819,459 3.11 % Less: taxable-equivalent adjustment 2,258 1,824 Net interest income $ 936,283 $ 817,635 (1) Average loans are shown net of deferred fees and costs. NPLs are included. (2) Interest income includes net loan fees as follows: 2023 — $22.8 million and 2022 — $33.7 million. (3) Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans 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 $(1.49) billion and $(587.1) million for the six months ended June 30, 2023 and 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) Total Loans Total Loans Linked Quarter Total Loans Year/Year (Dollars in thousands) Loan Type June 30, 2023 March 31, 2023 % Change June 30, 2022 % Change Commercial, Financial, and Agricultural $ 14,166,890 $ 14,201,398 — % $ 13,018,089 9 % Owner-Occupied 8,364,342 8,398,778 — 7,760,236 8 Total Commercial & Industrial 22,531,232 22,600,176 — 20,778,325 8 Multi-Family 3,597,497 3,374,129 7 2,547,706 41 Hotels 1,771,381 1,737,163 2 1,597,930 11 Office Buildings 3,031,806 3,071,236 (1 ) 2,680,399 13 Shopping Centers 1,329,492 1,332,078 — 1,458,902 (9 ) Warehouses 1,068,734 1,020,921 5 811,738 32 Other Investment Property 1,471,356 1,441,303 2 1,311,373 12 Total Investment Properties 12,270,266 11,976,830 2 10,408,048 18 1-4 Family Construction 205,459 201,896 2 234,379 (12 ) 1-4 Family Investment Mortgage 410,267 394,754 4 407,476 1 Total 1-4 Family Properties 615,726 596,650 3 641,855 (4 ) Commercial Development 60,910 63,004 (3 ) 109,764 (45 ) Residential Development 98,229 106,872 (8 ) 156,816 (37 ) Land Acquisition 248,767 253,399 (2 ) 186,934 33 Land and Development 407,906 423,275 (4 ) 453,514 (10 ) Total Commercial Real Estate 13,293,898 12,996,755 2 11,503,417 16 Consumer Mortgages 5,379,284 5,246,640 3 5,124,523 5 Home Equity 1,773,987 1,757,250 1 1,579,218 12 Credit Cards 187,677 184,595 2 194,290 (3 ) Other Consumer Loans 1,187,459 1,259,523 (6 ) 2,025,007 (41 ) Total Consumer 8,528,407 8,448,008 1 8,923,038 (4 ) Total $ 44,353,537 $ 44,044,939 1 % $ 41,204,780 8 % NON-PERFORMING LOANS COMPOSITION (Unaudited) Total Non-performing Loans Total Non-performing Loans Linked Quarter Total Non-performing Loans Year/Year (Dollars in thousands) Loan Type June 30, 2023 March 31, 2023 % Change June 30, 2022 % Change Commercial, Financial, and Agricultural $ 144,415 $ 94,196 53 % $ 48,601 197 % Owner-Occupied 22,197 25,591 (13 ) 11,398 95 Total Commercial & Industrial 166,612 119,787 39 59,999 178 Multi-Family 1,748 1,806 (3 ) 2,598 (33 ) Office Buildings 28,024 190 nm 1,796 nm Shopping Centers 699 727 (4 ) 750 (7 ) Warehouses 218 222 (2 ) 924 (76 ) Other Investment Property 664 668 (1 ) 1,302 (49 ) Total Investment Properties 31,353 3,613 768 7,370 325 1-4 Family Construction 632 — nm 55 nm 1-4 Family Investment Mortgage 3,525 3,515 — 3,063 15 Total 1-4 Family Properties 4,157 3,515 18 3,118 33 Commercial Development — — nm 432 (100 ) Residential Development 267 267 — 399 (33 ) Land Acquisition 871 886 (2 ) 1,093 (20 ) Land and Development 1,138 1,153 (1 ) 1,924 (41 ) Total Commercial Real Estate 36,648 8,281 343 12,412 195 Consumer Mortgages 41,877 39,536 6 22,857 83 Home Equity 9,936 7,967 25 8,100 23 Other Consumer Loans 6,433 6,889 (7 ) 5,656 14 Total Consumer 58,246 54,392 7 36,613 59 Total $ 261,506 $ 182,460 43 % $ 109,024 140 % Synovus CREDIT QUALITY DATA (Unaudited) (Dollars in thousands) 2023 2022 Second Quarter Second First Fourth Third Second '23 vs '22 Quarter Quarter Quarter Quarter Quarter % Change Non-performing Loans (NPLs) $ 261,506 182,460 128,061 122,094 109,024 140 % Impaired Loans Held for Sale — — — 447 — nm Other Real Estate and Other Assets — — 15,320 15,320 26,759 (100 ) Non-performing Assets (NPAs) 261,506 182,460 143,381 137,861 135,783 93 Allowance for Loan Losses (ALL) 471,238 457,010 443,424 421,359 407,837 16 Reserve for Unfunded Commitments 55,729 57,473 57,455 57,936 50,559 10 Allowance for Credit Losses (ACL) 526,967 514,483 500,879 479,295 458,396 15 Net Charge-Offs - Quarter 26,396 18,550 13,300 4,682 16,565 Net Charge-Offs - YTD 44,947 18,550 53,156 39,856 35,174 Net Charge-Offs / Average Loans - Quarter (1) 0.24 % 0.17 0.12 0.04 0.16 Net Charge-Offs / Average Loans - YTD (1) 0.20 0.17 0.13 0.13 0.18 NPLs / Loans 0.59 0.41 0.29 0.29 0.26 NPAs / Loans, ORE and specific other assets 0.59 �� 0.41 0.33 0.32 0.33 ACL/Loans 1.19 1.17 1.15 1.13 1.11 ALL/Loans 1.06 1.04 1.01 0.99 0.99 ACL/NPLs 201.51 281.97 391.13 392.56 420.45 ALL/NPLs 180.20 250.47 346.26 345.11 374.08 Past Due Loans over 90 days and Still Accruing $ 3,643 3,529 3,373 3,443 2,251 62 As a Percentage of Loans Outstanding 0.01 % 0.01 0.01 0.01 0.01 Total Past Due Loans and Still Accruing $ 84,946 55,053 65,568 63,545 56,160 51 As a Percentage of Loans Outstanding 0.19 % 0.12 0.15 0.15 0.14 (1) Ratio is annualized. SELECTED CAPITAL INFORMATION (1) (Unaudited) (Dollars in thousands) June 30, 2023 December 31, 2022 June 30, 2022 Common Equity Tier 1 Capital Ratio 9.85 % 9.63 9.46 Tier 1 Capital Ratio 10.88 10.68 10.56 Total Risk-Based Capital Ratio 12.79 12.54 12.43 Tier 1 Leverage Ratio 9.23 9.07 9.03 Total Synovus Financial Corp. shareholders' equity as a Percentage of Total Assets 7.88 7.49 7.99 Tangible Common Equity Ratio (2) (4) 6.17 5.84 6.26 Book Value Per Common Share (3) $ 29.05 27.07 27.84 Tangible Book Value Per Common Share (2) 25.37 23.78 24.52 (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. View source version on businesswire.com: https://www.businesswire.com/news/home/20230719590036/en/Contacts Media Contact Audria Belton Media Relations media@synovus.com Investor Contact Jennifer Demba Investor Relations investorrelations@synovus.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Synovus announces earnings for the second quarter 2023 By: Synovus Financial Corp. via Business Wire July 19, 2023 at 17:38 PM EDT Diluted earnings per share of $1.13 vs. $1.16 in 2Q22 Adjusted diluted earnings per share of $1.16 vs. $1.17 in 2Q22 Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended June 30, 2023. “Our second quarter financial performance reflects the strength and resiliency of our team, with pre-provision net revenue growing 8% year over year and adjusted return on tangible common equity at 18%,” said Synovus Chairman, CEO and President Kevin Blair. “Strong deposit production, increased capital levels and stability in credit metrics, as we saw during the second quarter, all serve as mitigants to the risks of an environment with heightened levels of volatility and uncertainty. And as we position the company for sustainable, long-term growth, we’re proactively optimizing the balance sheet, we’ve adjusted revenue expectations in response to slower economic growth trends and deposit remixing, and we’ve significantly reduced expense growth. Even as we execute amid lingering challenging market conditions, we remain fully dedicated to providing reliable and innovative financial solutions to our clients. Their trust and confidence in our institution have been paramount to our growth and sustained performance.” Second Quarter 2023 Highlights Total revenue of $567.8 million increased $45.2 million, or 9%, compared to the second quarter 2022, driven by net interest income growth of 7%, in addition to growth in core client fee income, excluding mortgage, of 7% year-over-year. Pre-provision net revenue of $260.6 million increased $20.0 million, or 8%, compared to the second quarter 2022. Period-end loans increased $308.6 million sequentially, primarily driven by fundings of existing CRE commitments and growth in consumer loans, somewhat offset by lower utilization from C&I commitments. Total deposits increased $126.5 million sequentially and included remixing due to the rate environment. Credit quality metrics at solid levels with a net charge-off ratio of 0.24%, a modest increase in the ACL ratio to 1.19%, and broader stable performance across the loan portfolio, asset types, and industries. Preliminary CET1 ratio of 9.85% increased 8 bps sequentially as capital generation continued to support client loan growth while also buffering capital levels given economic uncertainty. Second Quarter Summary Reported Adjusted (dollars in thousands) 2Q23 1Q23 2Q22 2Q23 1Q23 2Q22 Net income available to common shareholders $ 165,819 $ 193,868 $ 169,761 $ 169,526 $ 195,276 $ 171,018 Diluted earnings per share 1.13 1.32 1.16 1.16 1.33 1.17 Total revenue 567,807 613,877 522,654 567,347 599,469 526,854 Total loans 44,353,537 44,044,939 41,204,780 N/A N/A N/A Total deposits 50,080,392 49,953,936 49,034,700 N/A N/A N/A Return on avg assets 1.15 % 1.36 % 1.26 % 1.18 % 1.37 % 1.27 % Return on avg common equity 15.5 19.2 16.5 15.8 19.4 16.6 Return on avg tangible common equity 17.7 21.9 18.8 18.1 22.1 19.0 Net interest margin 3.20 3.43 3.22 N/A N/A N/A Efficiency ratio-TE(1)(2) 53.99 52.33 53.87 52.57 50.48 53.43 NCO ratio-QTD 0.24 0.17 0.16 N/A N/A N/A NPA ratio 0.59 0.41 0.33 N/A N/A N/A (1) Taxable equivalent (2) Adjusted tangible efficiency ratio Balance Sheet Loans* (dollars in millions) 2Q23 1Q23 Linked Quarter Change Linked Quarter % Change 2Q22 Year/Year Change Year/Year % Change Commercial & industrial $ 22,531.2 $ 22,600.2 $ (68.9 ) — % $ 20,778.3 $ 1,752.9 8 % Commercial real estate 13,293.9 12,996.8 297.1 2 11,503.4 1,790.5 16 Consumer 8,528.4 8,448.0 80.4 1 8,923.0 (394.6 ) (4 ) Total loans $ 44,353.5 $ 44,044.9 $ 308.6 1 % $ 41,204.8 $ 3,148.8 8 % *Amounts may not total due to rounding Total loans ended the quarter at $44.35 billion, up $308.6 million sequentially. Commercial and industrial (C&I) loans decreased $68.9 million sequentially, primarily driven by lower utilization from existing commitments and a strategic decline in syndicated loans. CRE loans increased $297.1 million sequentially, mostly due to draws on existing multi-family commitments and continued low levels of pay-offs. Consumer loans increased $80.4 million sequentially, largely a result of growth in portfolio mortgages somewhat offset by continued third-party decline from runoff. Deposits* (dollars in millions) 2Q23 1Q23 Linked Quarter Change Linked Quarter % Change 2Q22 Year/Year Change Year/Year % Change Non-interest-bearing DDA $ 12,945.5 $ 13,827.6 $ (882.0 ) (6 )% $ 15,781.1 $ (2,835.6 ) (18 )% Interest-bearing DDA 6,255.3 5,841.0 414.3 7 6,327.1 (71.7 ) (1 ) Money market 10,803.7 11,776.0 (972.3 ) (8 ) 13,793.0 (2,989.3 ) (22 ) Savings 1,222.9 1,312.7 (89.8 ) (7 ) 1,498.7 (275.9 ) (18 ) Public funds 7,031.4 6,888.2 143.2 2 5,863.9 1,167.5 20 Time deposits 5,291.8 4,060.3 1,231.5 30 2,147.8 3,144.1 146 Brokered deposits 6,529.8 6,248.3 281.5 5 3,623.1 2,906.7 80 Total deposits $ 50,080.4 $ 49,953.9 $ 126.5 — % $ 49,034.7 $ 1,045.7 2 % *Amounts may not total due to rounding Total deposits ended the quarter at $50.08 billion, up $126.5 million sequentially Money market deposits were primarily impacted by the continued shifting to time deposits. Non-interest-bearing DDAs were impacted by pressures from seasonal cash deployment of excess funds and continued pressures from the higher rate environment. Total deposit costs increased 51 bps sequentially to 1.95% and were impacted by the anticipated pricing lags on core interest-bearing deposits (excludes brokered deposits) as well as the decline in non-interest-bearing DDAs. Income Statement Summary** (in thousands, except per share data) 2Q23 1Q23 Linked Quarter Change Linked Quarter % Change 2Q22 Year/Year Change Year/Year % Change Net interest income $ 455,531 $ 480,751 $ (25,220 ) (5 )% $ 425,388 $ 30,143 7 % Non-interest revenue 112,276 133,126 (20,850 ) (16 ) 97,266 15,010 15 Non-interest expense 307,181 321,852 (14,671 ) (5 ) 282,051 25,130 9 Provision for (reversal of) credit losses 38,881 32,154 6,727 21 12,688 26,193 206 Income before taxes $ 221,745 $ 259,871 $ (38,126 ) (15 )% $ 227,915 $ (6,170 ) (3 )% Income tax expense 47,801 57,712 (9,911 ) (17 ) 49,863 (2,062 ) (4 ) Net income 173,944 202,159 (28,215 ) (14 ) 178,052 (4,108 ) (2 ) Less: Net income (loss) attributable to noncontrolling interest (166 ) — (166 ) NM — (166 ) NM Net income attributable to Synovus Financial Corp. 174,110 202,159 (28,049 ) (14 ) 178,052 (3,942 ) (2 ) Less: Preferred stock dividends 8,291 8,291 — — 8,291 — — Net income available to common shareholders $ 165,819 $ 193,868 $ (28,049 ) (14 )% $ 169,761 $ (3,942 ) (2 )% Weighted average common shares outstanding, diluted 146,550 146,727 (177 ) — % 146,315 235 — % Diluted earnings per share $ 1.13 $ 1.32 $ (0.19 ) (14 ) $ 1.16 $ (0.03 ) (3 ) Adjusted diluted earnings per share 1.16 1.33 (0.17 ) (13 ) 1.17 (0.01 ) (1 ) Effective tax rate 21.56 % 22.21 % 21.88 % ** Amounts may not total due to rounding Core Performance Net interest income of $455.5 million was down $25.2 million sequentially, or 5%, and increased $30.1 million, or 7%, compared to the second quarter 2022. The quarter-over-quarter decline was largely driven by increases in deposit costs and negative re- mixing in non-interest-bearing DDA deposits partially offset by higher asset yields and earning asset growth. Net interest margin was 3.20%, down 23 bps sequentially, impacted by the same factors mentioned above. The year-over-year increase resulted primarily from loan growth and interest rate increases somewhat offset by higher deposit costs and negative remixing from non-interest DDA deposits. Non-interest revenue decreased $20.9 million, or 16%, sequentially and increased $15.0 million, or 15%, compared to the second quarter 2022. Adjusted non-interest revenue decreased $6.9 million, or 6%, sequentially and increased $10.2 million, or 10%, compared to the second quarter 2022. The quarter-over-quarter decrease was impacted by the prior quarter's $13.1 million one-time benefit from the recovery of a non-performing asset related to the regulatory approval of our Qualpay investment and strong growth in capital markets income in the first quarter 2023, which normalized this quarter. The year-over-year increase primarily related to higher wealth revenue from diverse sources including fees from short-term liquidity management products and a $7 million write-down in the second quarter 2022 on a minority tech investment. Non-interest expense decreased $14.7 million, or 5%, sequentially and increased $25.1 million, or 9%, compared to the second quarter 2022. Adjusted non-interest expense decreased $3.8 million, or 1%, sequentially and increased $17.0 million, or 6%, compared to the second quarter 2022. The quarter-over-quarter decrease was largely due to the previous quarter's $16.8 million loss associated with the move of third-party consumer loans to held for sale in addition to seasonally elevated personnel expense in the first quarter 2023. The year-over-year increase primarily resulted from new business initiatives and infrastructure investments as well as investments in our workforce and higher FDIC insurance and healthcare costs. Overall credit performance and the credit quality of our recent originations was solid. The non-performing loan and asset ratios both moved to 0.59%; the net charge-off ratio for the quarter was 0.24%, and total past dues were 0.19% of total loans outstanding. Provision for credit losses of $38.9 million increased $6.7 million sequentially and increased $26.2 million compared to the second quarter 2022. Drivers of the quarter-over-quarter increase included higher net charge-offs and a modest increase of 2 bps in the allowance for credit losses coverage ratio (to loans). Drivers of the year-over-year increase largely included an 8 bps increase in the allowance for credit losses coverage ratio (to loans), which resulted from deterioration in forecasted economic scenarios mostly offset by continued solid loan portfolio performance, and higher net charge-offs. Capital Ratios 2Q23 1Q23 2Q22 Common equity Tier 1 capital (CET1) ratio 9.85 % * 9.77 % 9.46 % Tier 1 capital ratio 10.88 * 10.81 10.56 Total risk-based capital ratio 12.79 * 12.72 12.43 Tier 1 leverage ratio 9.23 * 9.14 9.03 Tangible common equity ratio 6.17 6.12 6.26 * Ratios are preliminary. Capital Preliminary CET1 ratio improved 8 bps during the quarter to 9.85%, and the preliminary total risk-based capital ratio of 12.79% increased 7 bps from the previous quarter as core earnings continued to support capital generation. Second Quarter Earnings Conference Call Synovus will host an earnings highlights conference call at 8:30 a.m. ET on July 20, 2023. 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 $61 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 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, 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 non-interest revenue, non-interest expense; adjusted revenue; adjusted tangible efficiency ratio; adjusted net income available to common shareholders; adjusted diluted earnings per share; adjusted return on average assets; adjusted return on average common equity; return on average tangible common equity; adjusted return on average tangible common equity; and tangible common equity ratio are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are total non-interest revenue; total non-interest expense; total revenue; 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 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 non-interest revenue and adjusted revenue are measures used by management to evaluate non-interest revenue and total revenue revenue exclusive of net investment securities gains (losses), 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. 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) 2Q23 1Q23 2Q22 Adjusted non-interest revenue Total non-interest revenue $ 112,276 $ 133,126 $ 97,266 Investment securities (gains) losses, net — (1,030 ) — Recovery of NPA — (13,126 ) — Fair value adjustment on non-qualified deferred compensation (1,598 ) (1,371 ) 3,240 Adjusted non-interest revenue $ 110,678 $ 117,599 $ 100,506 Adjusted non-interest expense Total non-interest expense $ 307,181 $ 321,852 $ 282,051 (Loss) gain on other loans held for sale (2,360 ) (16,750 ) — Gain (loss) on early extinguishment of debt 377 — — Restructuring (charges) reversals 110 733 1,850 Valuation adjustment to Visa derivative (3,027 ) — (3,500 ) Fair value adjustment on non-qualified deferred compensation (1,598 ) (1,371 ) 3,240 Adjusted non-interest expense $ 300,683 $ 304,464 $ 283,641 Reconciliation of Non-GAAP Financial Measures, continued (dollars in thousands) 2Q23 1Q23 2Q22 Adjusted revenue and tangible efficiency ratio Adjusted non-interest expense $ 300,683 $ 304,464 $ 283,641 Amortization of intangibles (2,420 ) (1,857 ) (2,118 ) Adjusted tangible non-interest expense $ 298,263 $ 302,607 $ 281,523 Net interest income $ 455,531 $ 480,751 $ 425,388 Total non-interest revenue 112,276 133,126 97,266 Total revenue $ 567,807 $ 613,877 $ 522,654 Tax equivalent adjustment 1,138 1,119 960 Total TE revenue 568,945 614,996 523,614 Recovery of NPA — (13,126 ) — Investment securities losses (gains), net — (1,030 ) — Fair value adjustment on non-qualified deferred compensation (1,598 ) (1,371 ) 3,240 Adjusted revenue $ 567,347 $ 599,469 $ 526,854 Efficiency ratio-TE 53.99 % 52.33 % 53.87 % Adjusted tangible efficiency ratio 52.57 50.48 53.43 Adjusted return on average assets Net income $ 173,944 $ 202,159 $ 178,052 Recovery of NPA — (13,126 ) — Loss (gain) on other loans held for sale 2,360 16,750 — (Gain) loss on early extinguishment of debt (377 ) — — Restructuring charges (reversals) (110 ) (733 ) (1,850 ) Valuation adjustment to Visa derivative 3,027 — 3,500 Investment securities losses (gains), net — (1,030 ) — Tax effect of adjustments(1) (1,193 ) (453 ) (393 ) Adjusted net income $ 177,651 $ 203,567 $ 179,309 Net income annualized $ 697,687 $ 819,867 $ 714,165 Adjusted net income annualized $ 712,556 $ 825,577 $ 719,206 Total average assets $ 60,515,077 $ 60,133,561 $ 56,536,940 Return on average assets 1.15 % 1.36 % 1.26 % Adjusted return on average assets 1.18 1.37 1.27 Adjusted net income available to common shareholders and adjusted diluted earnings per share Net income available to common shareholders $ 165,819 $ 193,868 $ 169,761 Recovery of NPA — (13,126 ) — Loss (gain) on other loans held for sale 2,360 16,750 — (Gain) loss on early extinguishment of debt (377 ) — — Restructuring charges (reversals) (110 ) (733 ) (1,850 ) Valuation adjustment to Visa derivative 3,027 — 3,500 Investment securities losses (gains), net — (1,030 ) — Tax effect of adjustments(1) (1,193 ) (453 ) (393 ) Adjusted net income available to common shareholders $ 169,526 $ 195,276 $ 171,018 Weighted average common shares outstanding, diluted 146,550 146,727 146,315 Diluted earnings per share $ 1.13 $ 1.32 $ 1.16 Adjusted diluted earnings per share 1.16 1.33 1.17 Reconciliation of Non-GAAP Financial Measures, continued (dollars in thousands) 2Q23 1Q23 2Q22 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 $ 165,819 $ 193,868 $ 169,761 Recovery of NPA — (13,126 ) — Loss (gain) on other loans held for sale 2,360 16,750 — (Gain) loss on early extinguishment of debt (377 ) — — Restructuring charges (reversals) (110 ) (733 ) (1,850 ) Valuation adjustment to Visa derivative 3,027 — 3,500 Investment securities losses (gains), net — (1,030 ) — Tax effect of adjustments(1) (1,193 ) (453 ) (393 ) Adjusted net income available to common shareholders $ 169,526 $ 195,276 $ 171,018 Adjusted net income available to common shareholders annualized $ 679,967 $ 791,953 $ 685,951 Amortization of intangibles, tax effected, annualized 7,344 5,699 6,471 Adjusted net income available to common shareholders excluding amortization of intangibles annualized $ 687,311 $ 797,652 $ 692,422 Net income available to common shareholders annualized $ 665,098 $ 786,242 $ 680,910 Amortization of intangibles, tax effected, annualized 7,344 5,699 6,471 Net income available to common shareholders excluding amortization of intangibles annualized $ 672,442 $ 791,941 $ 687,381 Total average Synovus Financial Corp. shareholders' equity less preferred stock $ 4,303,722 $ 4,088,777 $ 4,132,536 Average goodwill (460,118 ) (452,390 ) (452,390 ) Average other intangible assets, net (36,738 ) (26,245 ) (32,387 ) Total average Synovus Financial Corp. tangible shareholders' equity less preferred stock $ 3,806,866 $ 3,610,142 $ 3,647,759 Return on average common equity 15.5 % 19.2 % 16.5 % Adjusted return on average common equity 15.8 19.4 16.6 Return on average tangible common equity 17.7 21.9 18.8 Adjusted return on average tangible common equity 18.1 22.1 19.0 (dollars in thousands) June 30, 2023 December 31, 2022 June 30, 2022 Tangible common equity ratio Total assets $ 60,655,591 $ 59,731,378 $ 57,382,745 Goodwill (475,573 ) (452,390 ) (452,390 ) Other intangible assets, net (61,538 ) (27,124 ) (31,360 ) Tangible assets $ 60,118,480 $ 59,251,864 $ 56,898,995 Total Synovus Financial Corp. shareholders’ equity $ 4,782,528 $ 4,475,801 $ 4,584,438 Goodwill (475,573 ) (452,390 ) (452,390 ) Other intangible assets, net (61,538 ) (27,124 ) (31,360 ) Preferred Stock, no par value (537,145 ) (537,145 ) (537,145 ) Tangible common equity $ 3,708,272 $ 3,459,142 $ 3,563,543 Total Synovus Financial Corp. shareholders’ equity to total assets ratio 7.88 % 7.49 % 7.99 % Tangible common equity ratio 6.17 5.84 6.26 (1) An assumed marginal tax rate of 24.3% for 2Q23 and 1Q23 and 23.8% for 2Q22 was applied. Amounts may not total due to rounding Synovus INCOME STATEMENT DATA (Unaudited) (Dollars in thousands, except per share data) Six Months Ended June 30, 2023 2022 23 vs '22 % Change Interest income $ 1,476,022 $ 869,834 70 % Interest expense 539,739 52,199 934 Net interest income 936,283 817,635 15 Provision for (reversal of) credit losses 71,035 24,088 195 Net interest income after provision for credit losses 865,248 793,547 9 Non-interest revenue: Service charges on deposit accounts 46,451 46,030 1 Fiduciary and asset management fees 39,723 40,377 (2 ) Card fees 32,884 30,846 7 Brokerage revenue 43,466 29,898 45 Mortgage banking income 8,467 9,857 (14 ) Capital markets income 20,700 12,864 61 Income from bank-owned life insurance 14,140 15,722 (10 ) Investment securities gains (losses), net 1,030 — nm Recovery of NPA 13,126 — nm Other non-interest revenue 25,415 17,006 49 Total non-interest revenue 245,402 202,600 21 Non-interest expense: Salaries and other personnel expense 371,926 325,747 14 Net occupancy, equipment, and software expense 85,645 86,076 (1 ) Third-party processing and other services 43,493 42,947 1 Professional fees 18,560 19,338 (4 ) FDIC insurance and other regulatory fees 21,429 13,144 63 Restructuring charges (reversals) (843 ) (8,274 ) nm Loss on other loans held for sale 19,110 — nm Other operating expenses 69,714 75,523 (8 ) Total non-interest expense 629,034 554,501 13 Income before income taxes 481,616 441,646 9 Income tax expense 105,513 92,558 14 Net income 376,103 349,088 8 Less: Net income attributable to noncontrolling interest (166 ) — nm Net income attributable to Synovus Financial Corp. 376,269 349,088 8 Less: Preferred stock dividends 16,581 16,581 — Net income available to common shareholders $ 359,688 $ 332,507 8 % Net income per common share, basic $ 2.46 $ 2.29 8 % Net income per common share, diluted 2.45 2.27 8 Cash dividends declared per common share 0.76 0.68 12 Return on average assets * 1.26 % 1.24 % 2 bps Return on average common equity * 17.28 15.28 200 Weighted average common shares outstanding, basic 145,957 145,301 — % Weighted average common shares outstanding, diluted 146,644 146,489 — nm - not meaningful bps - basis points * - ratios are annualized Amounts may not total due to rounding Synovus INCOME STATEMENT DATA (Unaudited) (Dollars in thousands, except per share data) 2023 2022 Second Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter '23 vs '22 % Change Interest income $ 759,143 716,879 654,654 551,299 453,772 67 % Interest expense 303,612 236,128 153,308 73,380 28,384 970 Net interest income 455,531 480,751 501,346 477,919 425,388 7 Provision for (reversal of) credit losses 38,881 32,154 34,884 25,581 12,688 206 Net interest income after provision for credit losses 416,650 448,597 466,462 452,338 412,700 1 Non-interest revenue: Service charges on deposit accounts 23,477 22,974 23,639 23,398 23,491 — Fiduciary and asset management fees 20,027 19,696 18,836 19,201 20,100 — Card fees 17,059 15,824 15,887 15,101 16,089 6 Brokerage revenue 20,908 22,558 19,996 17,140 15,243 37 Mortgage banking income 4,609 3,858 2,554 5,065 3,904 18 Capital markets income 6,975 13,725 6,998 6,839 7,393 (6 ) Income from bank-owned life insurance 6,878 7,262 7,206 6,792 9,165 (25 ) Investment securities gains (losses), net — 1,030 — — — nm Recovery of NPA — 13,126 — — — nm Other non-interest revenue 12,343 13,073 7,323 10,762 1,881 556 Total non-interest revenue 112,276 133,126 102,439 104,298 97,266 15 Non-interest expense: Salaries and other personnel expense 183,001 188,924 182,629 173,334 161,063 14 Net occupancy, equipment, and software expense 42,785 42,860 45,192 43,462 43,199 (1 ) Third-party processing and other services 21,659 21,833 23,130 22,539 21,952 (1 ) Professional fees 9,597 8,963 11,096 6,755 10,865 (12 ) FDIC insurance and other regulatory fees 11,162 10,268 8,232 7,707 6,894 62 Restructuring charges (reversals) (110 ) (733 ) (2,372 ) 956 (1,850 ) (94 ) Loss on other loans held for sale 2,360 16,750 — — — nm Other operating expenses 36,727 32,987 41,089 39,257 39,928 (8 ) Total non-interest expense 307,181 321,852 308,996 294,010 282,051 9 Income before income taxes 221,745 259,871 259,905 262,626 227,915 (3 ) Income tax expense 47,801 57,712 54,135 59,582 49,863 (4 ) Net income 173,944 202,159 205,770 203,044 178,052 (2 ) Less: Net income attributable to noncontrolling interest (166 ) — — — — nm Net income attributable to Synovus Financial Corp. 174,110 202,159 205,770 203,044 178,052 (2 ) Less: Preferred stock dividends 8,291 8,291 8,291 8,291 8,291 — Net income available to common shareholders $ 165,819 193,868 197,479 194,753 169,761 (2 )% Net income per common share, basic $ 1.13 1.33 1.36 1.34 1.17 (3 )% Net income per common share, diluted 1.13 1.32 1.35 1.33 1.16 (3 ) Cash dividends declared per common share 0.38 0.38 0.34 0.34 0.34 12 Return on average assets * 1.15 % 1.36 1.38 1.39 1.26 (11) bps Return on average common equity * 15.45 19.23 20.93 18.66 16.48 (103 ) Weighted average common shares outstanding, basic 146,113 145,799 145,467 145,386 145,328 1 % Weighted average common shares outstanding, diluted 146,550 146,727 146,528 146,418 146,315 — nm - not meaningful bps - basis points * - ratios are annualized Amounts may not total due to rounding Synovus BALANCE SHEET DATA June 30, 2023 December 31, 2022 June 30, 2022 (Unaudited) (In thousands, except share data) ASSETS Cash and due from banks $ 576,148 $ 624,097 $ 583,323 Interest-bearing funds with Federal Reserve Bank 1,391,961 1,280,684 1,023,030 Interest earning deposits with banks 50,254 34,632 29,139 Federal funds sold and securities purchased under resale agreements 35,788 38,367 29,568 Cash, cash equivalents, and restricted cash 2,054,151 1,977,780 1,665,060 Investment securities available for sale, at fair value 9,621,175 9,678,103 9,889,850 Loans held for sale (includes $62,616, $51,136 and $76,864 measured at fair value, respectively) 514,450 391,502 917,679 Loans, net of deferred fees and costs 44,353,537 43,716,353 41,204,780 Allowance for loan losses (471,238 ) (443,424 ) (407,837 ) Loans, net 43,882,299 43,272,929 40,796,943 Cash surrender value of bank-owned life insurance 1,100,114 1,089,280 1,078,703 Premises, equipment, and software, net 365,443 370,632 383,060 Goodwill 475,573 452,390 452,390 Other intangible assets, net 61,538 27,124 31,360 Other assets 2,580,848 2,471,638 2,167,700 Total assets $ 60,655,591 $ 59,731,378 $ 57,382,745 LIABILITIES AND EQUITY Liabilities: Deposits: Non-interest-bearing deposits $ 13,565,602 $ 15,639,899 $ 16,876,710 Interest-bearing deposits 36,514,790 33,231,660 32,157,990 Total deposits 50,080,392 48,871,559 49,034,700 Federal funds purchased and securities sold under repurchase agreements 83,384 146,588 345,242 Other short-term borrowings 1,461 603,384 255,018 Long-term debt 4,021,411 4,109,597 1,804,104 Other liabilities 1,661,175 1,524,449 1,359,243 Total liabilities 55,847,823 55,255,577 52,798,307 Equity: 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 170,808,134, 170,141,492 and 170,012,527 respectively; outstanding 146,153,276, 145,486,634 and 145,357,669 respectively 170,808 170,141 170,013 Additional paid-in capital 3,933,548 3,920,346 3,908,118 Treasury stock, at cost; 24,654,858 shares (944,484 ) (944,484 ) (944,484 ) Accumulated other comprehensive income (loss), net (1,395,175 ) (1,442,117 ) (1,026,705 ) Retained earnings 2,480,686 2,234,770 1,940,351 Total Synovus Financial Corp. shareholders’ equity 4,782,528 4,475,801 4,584,438 Noncontrolling interest in subsidiary 25,240 — — Total equity 4,807,768 4,475,801 4,584,438 Total liabilities and equity $ 60,655,591 $ 59,731,378 $ 57,382,745 Synovus AVERAGE BALANCES, INTEREST, AND YIELDS/RATES (Unaudited) Second Quarter 2023 First Quarter 2023 Second 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) $ 35,628,637 $ 566,823 6.38 % $ 35,030,809 $ 526,529 6.10 % $ 31,870,387 $ 308,442 3.88 % Consumer loans (1) (2) 8,470,478 104,545 4.94 8,762,631 104,147 4.78 8,720,488 83,826 3.86 Less: Allowance for loan losses (466,700 ) — — (445,192 ) — — (415,372 ) — — Loans, net 43,632,415 671,368 6.17 43,348,248 630,676 5.89 40,175,503 392,268 3.92 Investment securities available for sale 11,200,717 60,421 2.16 11,293,958 61,054 2.16 11,153,091 50,312 1.81 Trading account assets 21,328 309 5.80 11,338 124 4.39 11,987 73 2.44 Other earning assets(4) 1,446,425 18,081 4.95 1,513,800 17,212 4.55 813,028 1,660 0.81 FHLB and Federal Reserve Bank stock 280,248 4,301 6.14 306,935 3,355 4.37 179,837 1,820 4.05 Mortgage loans held for sale 54,603 852 6.24 36,497 566 6.20 85,299 921 4.32 Other loans held for sale 546,224 4,949 3.58 443,690 5,011 4.52 725,762 7,678 4.19 Total interest earning assets 57,181,960 $ 760,281 5.33 % 56,954,466 $ 717,998 5.11 % 53,144,507 $ 454,732 3.43 % Cash and due from banks 646,066 643,502 538,647 Premises and equipment 369,039 370,275 385,457 Other real estate — — 11,439 Cash surrender value of bank-owned life insurance 1,095,866 1,091,080 1,077,231 Other assets(5) 1,222,146 1,074,238 1,379,659 Total assets $ 60,515,077 $ 60,133,561 $ 56,536,940 Liabilities and Equity Interest-bearing liabilities: Interest-bearing demand deposits $ 9,891,375 $ 41,803 1.70 % $ 9,091,166 $ 23,221 1.04 % $ 9,513,334 $ 3,598 0.15 % Money market accounts 13,468,210 85,397 2.54 14,395,050 72,615 2.05 15,328,395 6,850 0.18 Savings deposits 1,276,040 281 0.09 1,370,173 211 0.06 1,506,195 72 0.02 Time deposits 4,866,221 39,551 3.26 3,601,288 21,496 2.42 2,829,684 1,688 0.24 Brokered deposits 6,342,751 74,748 4.73 5,553,970 56,392 4.12 2,878,536 6,293 0.88 Federal funds purchased and securities sold under repurchase agreements 88,591 351 1.57 133,360 670 2.01 246,737 219 0.35 Other short-term borrowings 455,050 5,566 4.84 1,677,519 18,994 4.53 480,999 896 0.74 Long-term debt 3,821,126 55,915 5.82 3,148,062 42,529 5.41 878,413 8,768 3.99 Total interest-bearing liabilities 40,209,364 $ 303,612 3.03 % 38,970,588 $ 236,128 2.46 % 33,662,293 $ 28,384 0.33 % Non-interest-bearing demand deposits 13,874,482 15,014,224 16,959,850 Other liabilities 1,556,863 1,522,827 1,245,116 Total equity 4,874,368 4,625,922 4,669,681 Total liabilities and equity $ 60,515,077 $ 60,133,561 $ 56,536,940 Net interest income and net interest margin, taxable equivalent (6) $ 456,669 3.20 % $ 481,870 3.43 % $ 426,348 3.22 % Less: taxable-equivalent adjustment 1,138 1,119 960 Net interest income $ 455,531 $ 480,751 $ 425,388 (1) Average loans are shown net of deferred fees and costs. NPLs are included. (2) Interest income includes net loan fees as follows: Second Quarter 2023 — $11.3 million, First Quarter 2023 — $11.5 million, and Second Quarter 2022 — $13.0 million. (3) Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans 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 $(1.46) billion, $(1.52) billion, and $(923.1) million for the Second Quarter 2023, First Quarter 2023, and Second 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 AVERAGE BALANCES, INTEREST, AND YIELDS/RATES (Unaudited) Six Months Ended June 30, 2023 2022 (dollars in thousands) Average Balance Interest Yield/ Rate Average Balance Interest Yield/ Rate Assets Interest earning assets: Commercial loans (1) (2) (3) $ 35,331,375 $ 1,093,352 6.24 % $ 31,316,646 $ 589,029 3.79 % Consumer loans (1) (2) 8,615,748 208,693 4.87 8,657,598 165,194 3.83 Less: Allowance for loan losses (456,005 ) (419,639 ) Loans, net 43,491,118 1,302,045 6.03 39,554,605 754,223 3.84 Investment securities available for sale 11,247,080 121,475 2.16 11,206,150 97,562 1.74 Trading account assets 16,360 434 5.30 10,540 112 2.13 Other earning assets(4) 1,479,926 35,292 4.74 1,363,223 2,475 0.36 FHLB and Federal Reserve Bank stock 293,518 7,656 5.22 170,006 2,505 2.95 Mortgage loans held for sale 45,600 1,418 6.22 94,542 1,803 3.81 Other loans held for sale 495,240 9,960 4.00 661,768 12,978 3.90 Total interest earning assets 57,068,842 $ 1,478,280 5.22 % 53,060,834 $ 871,658 3.31 % Cash and due from banks 644,791 543,638 Premises and equipment 369,654 392,079 Other real estate — 11,598 Cash surrender value of bank-owned life insurance 1,093,486 1,074,076 Other assets(5) 1,148,600 1,613,313 Total assets $ 60,325,373 $ 56,695,538 Liabilities and Equity Interest-bearing liabilities: Interest-bearing demand deposits $ 9,493,481 $ 65,024 1.38 % $ 9,531,330 $ 5,970 0.13 % Money market accounts 13,929,069 158,012 2.29 15,685,030 12,199 0.16 Savings deposits 1,322,846 491 0.07 1,483,547 139 0.02 Time deposits 4,237,249 61,047 2.91 2,919,242 3,826 0.26 Brokered deposits 5,950,539 131,141 4.44 2,833,580 10,026 0.71 Federal funds purchased and securities sold under repurchase agreements 110,852 1,021 1.83 220,689 230 0.21 Other short-term borrowings 1,062,908 24,559 4.60 244,202 896 0.73 Long-term debt 3,486,453 98,444 5.63 930,131 18,913 4.07 Total interest-bearing liabilities 39,593,397 $ 539,739 2.75 % 33,847,751 $ 52,199 0.31 % Non-interest-bearing demand deposits 14,441,205 16,727,040 Other liabilities 1,539,939 1,195,043 Total equity 4,750,832 4,925,704 Total liabilities and equity $ 60,325,373 $ 56,695,538 Net interest income, taxable equivalent net interest margin (6) $ 938,541 3.32 % $ 819,459 3.11 % Less: taxable-equivalent adjustment 2,258 1,824 Net interest income $ 936,283 $ 817,635 (1) Average loans are shown net of deferred fees and costs. NPLs are included. (2) Interest income includes net loan fees as follows: 2023 — $22.8 million and 2022 — $33.7 million. (3) Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans 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 $(1.49) billion and $(587.1) million for the six months ended June 30, 2023 and 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) Total Loans Total Loans Linked Quarter Total Loans Year/Year (Dollars in thousands) Loan Type June 30, 2023 March 31, 2023 % Change June 30, 2022 % Change Commercial, Financial, and Agricultural $ 14,166,890 $ 14,201,398 — % $ 13,018,089 9 % Owner-Occupied 8,364,342 8,398,778 — 7,760,236 8 Total Commercial & Industrial 22,531,232 22,600,176 — 20,778,325 8 Multi-Family 3,597,497 3,374,129 7 2,547,706 41 Hotels 1,771,381 1,737,163 2 1,597,930 11 Office Buildings 3,031,806 3,071,236 (1 ) 2,680,399 13 Shopping Centers 1,329,492 1,332,078 — 1,458,902 (9 ) Warehouses 1,068,734 1,020,921 5 811,738 32 Other Investment Property 1,471,356 1,441,303 2 1,311,373 12 Total Investment Properties 12,270,266 11,976,830 2 10,408,048 18 1-4 Family Construction 205,459 201,896 2 234,379 (12 ) 1-4 Family Investment Mortgage 410,267 394,754 4 407,476 1 Total 1-4 Family Properties 615,726 596,650 3 641,855 (4 ) Commercial Development 60,910 63,004 (3 ) 109,764 (45 ) Residential Development 98,229 106,872 (8 ) 156,816 (37 ) Land Acquisition 248,767 253,399 (2 ) 186,934 33 Land and Development 407,906 423,275 (4 ) 453,514 (10 ) Total Commercial Real Estate 13,293,898 12,996,755 2 11,503,417 16 Consumer Mortgages 5,379,284 5,246,640 3 5,124,523 5 Home Equity 1,773,987 1,757,250 1 1,579,218 12 Credit Cards 187,677 184,595 2 194,290 (3 ) Other Consumer Loans 1,187,459 1,259,523 (6 ) 2,025,007 (41 ) Total Consumer 8,528,407 8,448,008 1 8,923,038 (4 ) Total $ 44,353,537 $ 44,044,939 1 % $ 41,204,780 8 % NON-PERFORMING LOANS COMPOSITION (Unaudited) Total Non-performing Loans Total Non-performing Loans Linked Quarter Total Non-performing Loans Year/Year (Dollars in thousands) Loan Type June 30, 2023 March 31, 2023 % Change June 30, 2022 % Change Commercial, Financial, and Agricultural $ 144,415 $ 94,196 53 % $ 48,601 197 % Owner-Occupied 22,197 25,591 (13 ) 11,398 95 Total Commercial & Industrial 166,612 119,787 39 59,999 178 Multi-Family 1,748 1,806 (3 ) 2,598 (33 ) Office Buildings 28,024 190 nm 1,796 nm Shopping Centers 699 727 (4 ) 750 (7 ) Warehouses 218 222 (2 ) 924 (76 ) Other Investment Property 664 668 (1 ) 1,302 (49 ) Total Investment Properties 31,353 3,613 768 7,370 325 1-4 Family Construction 632 — nm 55 nm 1-4 Family Investment Mortgage 3,525 3,515 — 3,063 15 Total 1-4 Family Properties 4,157 3,515 18 3,118 33 Commercial Development — — nm 432 (100 ) Residential Development 267 267 — 399 (33 ) Land Acquisition 871 886 (2 ) 1,093 (20 ) Land and Development 1,138 1,153 (1 ) 1,924 (41 ) Total Commercial Real Estate 36,648 8,281 343 12,412 195 Consumer Mortgages 41,877 39,536 6 22,857 83 Home Equity 9,936 7,967 25 8,100 23 Other Consumer Loans 6,433 6,889 (7 ) 5,656 14 Total Consumer 58,246 54,392 7 36,613 59 Total $ 261,506 $ 182,460 43 % $ 109,024 140 % Synovus CREDIT QUALITY DATA (Unaudited) (Dollars in thousands) 2023 2022 Second Quarter Second First Fourth Third Second '23 vs '22 Quarter Quarter Quarter Quarter Quarter % Change Non-performing Loans (NPLs) $ 261,506 182,460 128,061 122,094 109,024 140 % Impaired Loans Held for Sale — — — 447 — nm Other Real Estate and Other Assets — — 15,320 15,320 26,759 (100 ) Non-performing Assets (NPAs) 261,506 182,460 143,381 137,861 135,783 93 Allowance for Loan Losses (ALL) 471,238 457,010 443,424 421,359 407,837 16 Reserve for Unfunded Commitments 55,729 57,473 57,455 57,936 50,559 10 Allowance for Credit Losses (ACL) 526,967 514,483 500,879 479,295 458,396 15 Net Charge-Offs - Quarter 26,396 18,550 13,300 4,682 16,565 Net Charge-Offs - YTD 44,947 18,550 53,156 39,856 35,174 Net Charge-Offs / Average Loans - Quarter (1) 0.24 % 0.17 0.12 0.04 0.16 Net Charge-Offs / Average Loans - YTD (1) 0.20 0.17 0.13 0.13 0.18 NPLs / Loans 0.59 0.41 0.29 0.29 0.26 NPAs / Loans, ORE and specific other assets 0.59 �� 0.41 0.33 0.32 0.33 ACL/Loans 1.19 1.17 1.15 1.13 1.11 ALL/Loans 1.06 1.04 1.01 0.99 0.99 ACL/NPLs 201.51 281.97 391.13 392.56 420.45 ALL/NPLs 180.20 250.47 346.26 345.11 374.08 Past Due Loans over 90 days and Still Accruing $ 3,643 3,529 3,373 3,443 2,251 62 As a Percentage of Loans Outstanding 0.01 % 0.01 0.01 0.01 0.01 Total Past Due Loans and Still Accruing $ 84,946 55,053 65,568 63,545 56,160 51 As a Percentage of Loans Outstanding 0.19 % 0.12 0.15 0.15 0.14 (1) Ratio is annualized. SELECTED CAPITAL INFORMATION (1) (Unaudited) (Dollars in thousands) June 30, 2023 December 31, 2022 June 30, 2022 Common Equity Tier 1 Capital Ratio 9.85 % 9.63 9.46 Tier 1 Capital Ratio 10.88 10.68 10.56 Total Risk-Based Capital Ratio 12.79 12.54 12.43 Tier 1 Leverage Ratio 9.23 9.07 9.03 Total Synovus Financial Corp. shareholders' equity as a Percentage of Total Assets 7.88 7.49 7.99 Tangible Common Equity Ratio (2) (4) 6.17 5.84 6.26 Book Value Per Common Share (3) $ 29.05 27.07 27.84 Tangible Book Value Per Common Share (2) 25.37 23.78 24.52 (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. View source version on businesswire.com: https://www.businesswire.com/news/home/20230719590036/en/Contacts Media Contact Audria Belton Media Relations media@synovus.com Investor Contact Jennifer Demba Investor Relations investorrelations@synovus.com
Diluted earnings per share of $1.13 vs. $1.16 in 2Q22 Adjusted diluted earnings per share of $1.16 vs. $1.17 in 2Q22
Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended June 30, 2023. “Our second quarter financial performance reflects the strength and resiliency of our team, with pre-provision net revenue growing 8% year over year and adjusted return on tangible common equity at 18%,” said Synovus Chairman, CEO and President Kevin Blair. “Strong deposit production, increased capital levels and stability in credit metrics, as we saw during the second quarter, all serve as mitigants to the risks of an environment with heightened levels of volatility and uncertainty. And as we position the company for sustainable, long-term growth, we’re proactively optimizing the balance sheet, we’ve adjusted revenue expectations in response to slower economic growth trends and deposit remixing, and we’ve significantly reduced expense growth. Even as we execute amid lingering challenging market conditions, we remain fully dedicated to providing reliable and innovative financial solutions to our clients. Their trust and confidence in our institution have been paramount to our growth and sustained performance.” Second Quarter 2023 Highlights Total revenue of $567.8 million increased $45.2 million, or 9%, compared to the second quarter 2022, driven by net interest income growth of 7%, in addition to growth in core client fee income, excluding mortgage, of 7% year-over-year. Pre-provision net revenue of $260.6 million increased $20.0 million, or 8%, compared to the second quarter 2022. Period-end loans increased $308.6 million sequentially, primarily driven by fundings of existing CRE commitments and growth in consumer loans, somewhat offset by lower utilization from C&I commitments. Total deposits increased $126.5 million sequentially and included remixing due to the rate environment. Credit quality metrics at solid levels with a net charge-off ratio of 0.24%, a modest increase in the ACL ratio to 1.19%, and broader stable performance across the loan portfolio, asset types, and industries. Preliminary CET1 ratio of 9.85% increased 8 bps sequentially as capital generation continued to support client loan growth while also buffering capital levels given economic uncertainty. Second Quarter Summary Reported Adjusted (dollars in thousands) 2Q23 1Q23 2Q22 2Q23 1Q23 2Q22 Net income available to common shareholders $ 165,819 $ 193,868 $ 169,761 $ 169,526 $ 195,276 $ 171,018 Diluted earnings per share 1.13 1.32 1.16 1.16 1.33 1.17 Total revenue 567,807 613,877 522,654 567,347 599,469 526,854 Total loans 44,353,537 44,044,939 41,204,780 N/A N/A N/A Total deposits 50,080,392 49,953,936 49,034,700 N/A N/A N/A Return on avg assets 1.15 % 1.36 % 1.26 % 1.18 % 1.37 % 1.27 % Return on avg common equity 15.5 19.2 16.5 15.8 19.4 16.6 Return on avg tangible common equity 17.7 21.9 18.8 18.1 22.1 19.0 Net interest margin 3.20 3.43 3.22 N/A N/A N/A Efficiency ratio-TE(1)(2) 53.99 52.33 53.87 52.57 50.48 53.43 NCO ratio-QTD 0.24 0.17 0.16 N/A N/A N/A NPA ratio 0.59 0.41 0.33 N/A N/A N/A (1) Taxable equivalent (2) Adjusted tangible efficiency ratio Balance Sheet Loans* (dollars in millions) 2Q23 1Q23 Linked Quarter Change Linked Quarter % Change 2Q22 Year/Year Change Year/Year % Change Commercial & industrial $ 22,531.2 $ 22,600.2 $ (68.9 ) — % $ 20,778.3 $ 1,752.9 8 % Commercial real estate 13,293.9 12,996.8 297.1 2 11,503.4 1,790.5 16 Consumer 8,528.4 8,448.0 80.4 1 8,923.0 (394.6 ) (4 ) Total loans $ 44,353.5 $ 44,044.9 $ 308.6 1 % $ 41,204.8 $ 3,148.8 8 % *Amounts may not total due to rounding Total loans ended the quarter at $44.35 billion, up $308.6 million sequentially. Commercial and industrial (C&I) loans decreased $68.9 million sequentially, primarily driven by lower utilization from existing commitments and a strategic decline in syndicated loans. CRE loans increased $297.1 million sequentially, mostly due to draws on existing multi-family commitments and continued low levels of pay-offs. Consumer loans increased $80.4 million sequentially, largely a result of growth in portfolio mortgages somewhat offset by continued third-party decline from runoff. Deposits* (dollars in millions) 2Q23 1Q23 Linked Quarter Change Linked Quarter % Change 2Q22 Year/Year Change Year/Year % Change Non-interest-bearing DDA $ 12,945.5 $ 13,827.6 $ (882.0 ) (6 )% $ 15,781.1 $ (2,835.6 ) (18 )% Interest-bearing DDA 6,255.3 5,841.0 414.3 7 6,327.1 (71.7 ) (1 ) Money market 10,803.7 11,776.0 (972.3 ) (8 ) 13,793.0 (2,989.3 ) (22 ) Savings 1,222.9 1,312.7 (89.8 ) (7 ) 1,498.7 (275.9 ) (18 ) Public funds 7,031.4 6,888.2 143.2 2 5,863.9 1,167.5 20 Time deposits 5,291.8 4,060.3 1,231.5 30 2,147.8 3,144.1 146 Brokered deposits 6,529.8 6,248.3 281.5 5 3,623.1 2,906.7 80 Total deposits $ 50,080.4 $ 49,953.9 $ 126.5 — % $ 49,034.7 $ 1,045.7 2 % *Amounts may not total due to rounding Total deposits ended the quarter at $50.08 billion, up $126.5 million sequentially Money market deposits were primarily impacted by the continued shifting to time deposits. Non-interest-bearing DDAs were impacted by pressures from seasonal cash deployment of excess funds and continued pressures from the higher rate environment. Total deposit costs increased 51 bps sequentially to 1.95% and were impacted by the anticipated pricing lags on core interest-bearing deposits (excludes brokered deposits) as well as the decline in non-interest-bearing DDAs. Income Statement Summary** (in thousands, except per share data) 2Q23 1Q23 Linked Quarter Change Linked Quarter % Change 2Q22 Year/Year Change Year/Year % Change Net interest income $ 455,531 $ 480,751 $ (25,220 ) (5 )% $ 425,388 $ 30,143 7 % Non-interest revenue 112,276 133,126 (20,850 ) (16 ) 97,266 15,010 15 Non-interest expense 307,181 321,852 (14,671 ) (5 ) 282,051 25,130 9 Provision for (reversal of) credit losses 38,881 32,154 6,727 21 12,688 26,193 206 Income before taxes $ 221,745 $ 259,871 $ (38,126 ) (15 )% $ 227,915 $ (6,170 ) (3 )% Income tax expense 47,801 57,712 (9,911 ) (17 ) 49,863 (2,062 ) (4 ) Net income 173,944 202,159 (28,215 ) (14 ) 178,052 (4,108 ) (2 ) Less: Net income (loss) attributable to noncontrolling interest (166 ) — (166 ) NM — (166 ) NM Net income attributable to Synovus Financial Corp. 174,110 202,159 (28,049 ) (14 ) 178,052 (3,942 ) (2 ) Less: Preferred stock dividends 8,291 8,291 — — 8,291 — — Net income available to common shareholders $ 165,819 $ 193,868 $ (28,049 ) (14 )% $ 169,761 $ (3,942 ) (2 )% Weighted average common shares outstanding, diluted 146,550 146,727 (177 ) — % 146,315 235 — % Diluted earnings per share $ 1.13 $ 1.32 $ (0.19 ) (14 ) $ 1.16 $ (0.03 ) (3 ) Adjusted diluted earnings per share 1.16 1.33 (0.17 ) (13 ) 1.17 (0.01 ) (1 ) Effective tax rate 21.56 % 22.21 % 21.88 % ** Amounts may not total due to rounding Core Performance Net interest income of $455.5 million was down $25.2 million sequentially, or 5%, and increased $30.1 million, or 7%, compared to the second quarter 2022. The quarter-over-quarter decline was largely driven by increases in deposit costs and negative re- mixing in non-interest-bearing DDA deposits partially offset by higher asset yields and earning asset growth. Net interest margin was 3.20%, down 23 bps sequentially, impacted by the same factors mentioned above. The year-over-year increase resulted primarily from loan growth and interest rate increases somewhat offset by higher deposit costs and negative remixing from non-interest DDA deposits. Non-interest revenue decreased $20.9 million, or 16%, sequentially and increased $15.0 million, or 15%, compared to the second quarter 2022. Adjusted non-interest revenue decreased $6.9 million, or 6%, sequentially and increased $10.2 million, or 10%, compared to the second quarter 2022. The quarter-over-quarter decrease was impacted by the prior quarter's $13.1 million one-time benefit from the recovery of a non-performing asset related to the regulatory approval of our Qualpay investment and strong growth in capital markets income in the first quarter 2023, which normalized this quarter. The year-over-year increase primarily related to higher wealth revenue from diverse sources including fees from short-term liquidity management products and a $7 million write-down in the second quarter 2022 on a minority tech investment. Non-interest expense decreased $14.7 million, or 5%, sequentially and increased $25.1 million, or 9%, compared to the second quarter 2022. Adjusted non-interest expense decreased $3.8 million, or 1%, sequentially and increased $17.0 million, or 6%, compared to the second quarter 2022. The quarter-over-quarter decrease was largely due to the previous quarter's $16.8 million loss associated with the move of third-party consumer loans to held for sale in addition to seasonally elevated personnel expense in the first quarter 2023. The year-over-year increase primarily resulted from new business initiatives and infrastructure investments as well as investments in our workforce and higher FDIC insurance and healthcare costs. Overall credit performance and the credit quality of our recent originations was solid. The non-performing loan and asset ratios both moved to 0.59%; the net charge-off ratio for the quarter was 0.24%, and total past dues were 0.19% of total loans outstanding. Provision for credit losses of $38.9 million increased $6.7 million sequentially and increased $26.2 million compared to the second quarter 2022. Drivers of the quarter-over-quarter increase included higher net charge-offs and a modest increase of 2 bps in the allowance for credit losses coverage ratio (to loans). Drivers of the year-over-year increase largely included an 8 bps increase in the allowance for credit losses coverage ratio (to loans), which resulted from deterioration in forecasted economic scenarios mostly offset by continued solid loan portfolio performance, and higher net charge-offs. Capital Ratios 2Q23 1Q23 2Q22 Common equity Tier 1 capital (CET1) ratio 9.85 % * 9.77 % 9.46 % Tier 1 capital ratio 10.88 * 10.81 10.56 Total risk-based capital ratio 12.79 * 12.72 12.43 Tier 1 leverage ratio 9.23 * 9.14 9.03 Tangible common equity ratio 6.17 6.12 6.26 * Ratios are preliminary. Capital Preliminary CET1 ratio improved 8 bps during the quarter to 9.85%, and the preliminary total risk-based capital ratio of 12.79% increased 7 bps from the previous quarter as core earnings continued to support capital generation. Second Quarter Earnings Conference Call Synovus will host an earnings highlights conference call at 8:30 a.m. ET on July 20, 2023. 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 $61 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 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, 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 non-interest revenue, non-interest expense; adjusted revenue; adjusted tangible efficiency ratio; adjusted net income available to common shareholders; adjusted diluted earnings per share; adjusted return on average assets; adjusted return on average common equity; return on average tangible common equity; adjusted return on average tangible common equity; and tangible common equity ratio are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are total non-interest revenue; total non-interest expense; total revenue; 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 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 non-interest revenue and adjusted revenue are measures used by management to evaluate non-interest revenue and total revenue revenue exclusive of net investment securities gains (losses), 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. 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) 2Q23 1Q23 2Q22 Adjusted non-interest revenue Total non-interest revenue $ 112,276 $ 133,126 $ 97,266 Investment securities (gains) losses, net — (1,030 ) — Recovery of NPA — (13,126 ) — Fair value adjustment on non-qualified deferred compensation (1,598 ) (1,371 ) 3,240 Adjusted non-interest revenue $ 110,678 $ 117,599 $ 100,506 Adjusted non-interest expense Total non-interest expense $ 307,181 $ 321,852 $ 282,051 (Loss) gain on other loans held for sale (2,360 ) (16,750 ) — Gain (loss) on early extinguishment of debt 377 — — Restructuring (charges) reversals 110 733 1,850 Valuation adjustment to Visa derivative (3,027 ) — (3,500 ) Fair value adjustment on non-qualified deferred compensation (1,598 ) (1,371 ) 3,240 Adjusted non-interest expense $ 300,683 $ 304,464 $ 283,641 Reconciliation of Non-GAAP Financial Measures, continued (dollars in thousands) 2Q23 1Q23 2Q22 Adjusted revenue and tangible efficiency ratio Adjusted non-interest expense $ 300,683 $ 304,464 $ 283,641 Amortization of intangibles (2,420 ) (1,857 ) (2,118 ) Adjusted tangible non-interest expense $ 298,263 $ 302,607 $ 281,523 Net interest income $ 455,531 $ 480,751 $ 425,388 Total non-interest revenue 112,276 133,126 97,266 Total revenue $ 567,807 $ 613,877 $ 522,654 Tax equivalent adjustment 1,138 1,119 960 Total TE revenue 568,945 614,996 523,614 Recovery of NPA — (13,126 ) — Investment securities losses (gains), net — (1,030 ) — Fair value adjustment on non-qualified deferred compensation (1,598 ) (1,371 ) 3,240 Adjusted revenue $ 567,347 $ 599,469 $ 526,854 Efficiency ratio-TE 53.99 % 52.33 % 53.87 % Adjusted tangible efficiency ratio 52.57 50.48 53.43 Adjusted return on average assets Net income $ 173,944 $ 202,159 $ 178,052 Recovery of NPA — (13,126 ) — Loss (gain) on other loans held for sale 2,360 16,750 — (Gain) loss on early extinguishment of debt (377 ) — — Restructuring charges (reversals) (110 ) (733 ) (1,850 ) Valuation adjustment to Visa derivative 3,027 — 3,500 Investment securities losses (gains), net — (1,030 ) — Tax effect of adjustments(1) (1,193 ) (453 ) (393 ) Adjusted net income $ 177,651 $ 203,567 $ 179,309 Net income annualized $ 697,687 $ 819,867 $ 714,165 Adjusted net income annualized $ 712,556 $ 825,577 $ 719,206 Total average assets $ 60,515,077 $ 60,133,561 $ 56,536,940 Return on average assets 1.15 % 1.36 % 1.26 % Adjusted return on average assets 1.18 1.37 1.27 Adjusted net income available to common shareholders and adjusted diluted earnings per share Net income available to common shareholders $ 165,819 $ 193,868 $ 169,761 Recovery of NPA — (13,126 ) — Loss (gain) on other loans held for sale 2,360 16,750 — (Gain) loss on early extinguishment of debt (377 ) — — Restructuring charges (reversals) (110 ) (733 ) (1,850 ) Valuation adjustment to Visa derivative 3,027 — 3,500 Investment securities losses (gains), net — (1,030 ) — Tax effect of adjustments(1) (1,193 ) (453 ) (393 ) Adjusted net income available to common shareholders $ 169,526 $ 195,276 $ 171,018 Weighted average common shares outstanding, diluted 146,550 146,727 146,315 Diluted earnings per share $ 1.13 $ 1.32 $ 1.16 Adjusted diluted earnings per share 1.16 1.33 1.17 Reconciliation of Non-GAAP Financial Measures, continued (dollars in thousands) 2Q23 1Q23 2Q22 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 $ 165,819 $ 193,868 $ 169,761 Recovery of NPA — (13,126 ) — Loss (gain) on other loans held for sale 2,360 16,750 — (Gain) loss on early extinguishment of debt (377 ) — — Restructuring charges (reversals) (110 ) (733 ) (1,850 ) Valuation adjustment to Visa derivative 3,027 — 3,500 Investment securities losses (gains), net — (1,030 ) — Tax effect of adjustments(1) (1,193 ) (453 ) (393 ) Adjusted net income available to common shareholders $ 169,526 $ 195,276 $ 171,018 Adjusted net income available to common shareholders annualized $ 679,967 $ 791,953 $ 685,951 Amortization of intangibles, tax effected, annualized 7,344 5,699 6,471 Adjusted net income available to common shareholders excluding amortization of intangibles annualized $ 687,311 $ 797,652 $ 692,422 Net income available to common shareholders annualized $ 665,098 $ 786,242 $ 680,910 Amortization of intangibles, tax effected, annualized 7,344 5,699 6,471 Net income available to common shareholders excluding amortization of intangibles annualized $ 672,442 $ 791,941 $ 687,381 Total average Synovus Financial Corp. shareholders' equity less preferred stock $ 4,303,722 $ 4,088,777 $ 4,132,536 Average goodwill (460,118 ) (452,390 ) (452,390 ) Average other intangible assets, net (36,738 ) (26,245 ) (32,387 ) Total average Synovus Financial Corp. tangible shareholders' equity less preferred stock $ 3,806,866 $ 3,610,142 $ 3,647,759 Return on average common equity 15.5 % 19.2 % 16.5 % Adjusted return on average common equity 15.8 19.4 16.6 Return on average tangible common equity 17.7 21.9 18.8 Adjusted return on average tangible common equity 18.1 22.1 19.0 (dollars in thousands) June 30, 2023 December 31, 2022 June 30, 2022 Tangible common equity ratio Total assets $ 60,655,591 $ 59,731,378 $ 57,382,745 Goodwill (475,573 ) (452,390 ) (452,390 ) Other intangible assets, net (61,538 ) (27,124 ) (31,360 ) Tangible assets $ 60,118,480 $ 59,251,864 $ 56,898,995 Total Synovus Financial Corp. shareholders’ equity $ 4,782,528 $ 4,475,801 $ 4,584,438 Goodwill (475,573 ) (452,390 ) (452,390 ) Other intangible assets, net (61,538 ) (27,124 ) (31,360 ) Preferred Stock, no par value (537,145 ) (537,145 ) (537,145 ) Tangible common equity $ 3,708,272 $ 3,459,142 $ 3,563,543 Total Synovus Financial Corp. shareholders’ equity to total assets ratio 7.88 % 7.49 % 7.99 % Tangible common equity ratio 6.17 5.84 6.26 (1) An assumed marginal tax rate of 24.3% for 2Q23 and 1Q23 and 23.8% for 2Q22 was applied. Amounts may not total due to rounding Synovus INCOME STATEMENT DATA (Unaudited) (Dollars in thousands, except per share data) Six Months Ended June 30, 2023 2022 23 vs '22 % Change Interest income $ 1,476,022 $ 869,834 70 % Interest expense 539,739 52,199 934 Net interest income 936,283 817,635 15 Provision for (reversal of) credit losses 71,035 24,088 195 Net interest income after provision for credit losses 865,248 793,547 9 Non-interest revenue: Service charges on deposit accounts 46,451 46,030 1 Fiduciary and asset management fees 39,723 40,377 (2 ) Card fees 32,884 30,846 7 Brokerage revenue 43,466 29,898 45 Mortgage banking income 8,467 9,857 (14 ) Capital markets income 20,700 12,864 61 Income from bank-owned life insurance 14,140 15,722 (10 ) Investment securities gains (losses), net 1,030 — nm Recovery of NPA 13,126 — nm Other non-interest revenue 25,415 17,006 49 Total non-interest revenue 245,402 202,600 21 Non-interest expense: Salaries and other personnel expense 371,926 325,747 14 Net occupancy, equipment, and software expense 85,645 86,076 (1 ) Third-party processing and other services 43,493 42,947 1 Professional fees 18,560 19,338 (4 ) FDIC insurance and other regulatory fees 21,429 13,144 63 Restructuring charges (reversals) (843 ) (8,274 ) nm Loss on other loans held for sale 19,110 — nm Other operating expenses 69,714 75,523 (8 ) Total non-interest expense 629,034 554,501 13 Income before income taxes 481,616 441,646 9 Income tax expense 105,513 92,558 14 Net income 376,103 349,088 8 Less: Net income attributable to noncontrolling interest (166 ) — nm Net income attributable to Synovus Financial Corp. 376,269 349,088 8 Less: Preferred stock dividends 16,581 16,581 — Net income available to common shareholders $ 359,688 $ 332,507 8 % Net income per common share, basic $ 2.46 $ 2.29 8 % Net income per common share, diluted 2.45 2.27 8 Cash dividends declared per common share 0.76 0.68 12 Return on average assets * 1.26 % 1.24 % 2 bps Return on average common equity * 17.28 15.28 200 Weighted average common shares outstanding, basic 145,957 145,301 — % Weighted average common shares outstanding, diluted 146,644 146,489 — nm - not meaningful bps - basis points * - ratios are annualized Amounts may not total due to rounding Synovus INCOME STATEMENT DATA (Unaudited) (Dollars in thousands, except per share data) 2023 2022 Second Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter '23 vs '22 % Change Interest income $ 759,143 716,879 654,654 551,299 453,772 67 % Interest expense 303,612 236,128 153,308 73,380 28,384 970 Net interest income 455,531 480,751 501,346 477,919 425,388 7 Provision for (reversal of) credit losses 38,881 32,154 34,884 25,581 12,688 206 Net interest income after provision for credit losses 416,650 448,597 466,462 452,338 412,700 1 Non-interest revenue: Service charges on deposit accounts 23,477 22,974 23,639 23,398 23,491 — Fiduciary and asset management fees 20,027 19,696 18,836 19,201 20,100 — Card fees 17,059 15,824 15,887 15,101 16,089 6 Brokerage revenue 20,908 22,558 19,996 17,140 15,243 37 Mortgage banking income 4,609 3,858 2,554 5,065 3,904 18 Capital markets income 6,975 13,725 6,998 6,839 7,393 (6 ) Income from bank-owned life insurance 6,878 7,262 7,206 6,792 9,165 (25 ) Investment securities gains (losses), net — 1,030 — — — nm Recovery of NPA — 13,126 — — — nm Other non-interest revenue 12,343 13,073 7,323 10,762 1,881 556 Total non-interest revenue 112,276 133,126 102,439 104,298 97,266 15 Non-interest expense: Salaries and other personnel expense 183,001 188,924 182,629 173,334 161,063 14 Net occupancy, equipment, and software expense 42,785 42,860 45,192 43,462 43,199 (1 ) Third-party processing and other services 21,659 21,833 23,130 22,539 21,952 (1 ) Professional fees 9,597 8,963 11,096 6,755 10,865 (12 ) FDIC insurance and other regulatory fees 11,162 10,268 8,232 7,707 6,894 62 Restructuring charges (reversals) (110 ) (733 ) (2,372 ) 956 (1,850 ) (94 ) Loss on other loans held for sale 2,360 16,750 — — — nm Other operating expenses 36,727 32,987 41,089 39,257 39,928 (8 ) Total non-interest expense 307,181 321,852 308,996 294,010 282,051 9 Income before income taxes 221,745 259,871 259,905 262,626 227,915 (3 ) Income tax expense 47,801 57,712 54,135 59,582 49,863 (4 ) Net income 173,944 202,159 205,770 203,044 178,052 (2 ) Less: Net income attributable to noncontrolling interest (166 ) — — — — nm Net income attributable to Synovus Financial Corp. 174,110 202,159 205,770 203,044 178,052 (2 ) Less: Preferred stock dividends 8,291 8,291 8,291 8,291 8,291 — Net income available to common shareholders $ 165,819 193,868 197,479 194,753 169,761 (2 )% Net income per common share, basic $ 1.13 1.33 1.36 1.34 1.17 (3 )% Net income per common share, diluted 1.13 1.32 1.35 1.33 1.16 (3 ) Cash dividends declared per common share 0.38 0.38 0.34 0.34 0.34 12 Return on average assets * 1.15 % 1.36 1.38 1.39 1.26 (11) bps Return on average common equity * 15.45 19.23 20.93 18.66 16.48 (103 ) Weighted average common shares outstanding, basic 146,113 145,799 145,467 145,386 145,328 1 % Weighted average common shares outstanding, diluted 146,550 146,727 146,528 146,418 146,315 — nm - not meaningful bps - basis points * - ratios are annualized Amounts may not total due to rounding Synovus BALANCE SHEET DATA June 30, 2023 December 31, 2022 June 30, 2022 (Unaudited) (In thousands, except share data) ASSETS Cash and due from banks $ 576,148 $ 624,097 $ 583,323 Interest-bearing funds with Federal Reserve Bank 1,391,961 1,280,684 1,023,030 Interest earning deposits with banks 50,254 34,632 29,139 Federal funds sold and securities purchased under resale agreements 35,788 38,367 29,568 Cash, cash equivalents, and restricted cash 2,054,151 1,977,780 1,665,060 Investment securities available for sale, at fair value 9,621,175 9,678,103 9,889,850 Loans held for sale (includes $62,616, $51,136 and $76,864 measured at fair value, respectively) 514,450 391,502 917,679 Loans, net of deferred fees and costs 44,353,537 43,716,353 41,204,780 Allowance for loan losses (471,238 ) (443,424 ) (407,837 ) Loans, net 43,882,299 43,272,929 40,796,943 Cash surrender value of bank-owned life insurance 1,100,114 1,089,280 1,078,703 Premises, equipment, and software, net 365,443 370,632 383,060 Goodwill 475,573 452,390 452,390 Other intangible assets, net 61,538 27,124 31,360 Other assets 2,580,848 2,471,638 2,167,700 Total assets $ 60,655,591 $ 59,731,378 $ 57,382,745 LIABILITIES AND EQUITY Liabilities: Deposits: Non-interest-bearing deposits $ 13,565,602 $ 15,639,899 $ 16,876,710 Interest-bearing deposits 36,514,790 33,231,660 32,157,990 Total deposits 50,080,392 48,871,559 49,034,700 Federal funds purchased and securities sold under repurchase agreements 83,384 146,588 345,242 Other short-term borrowings 1,461 603,384 255,018 Long-term debt 4,021,411 4,109,597 1,804,104 Other liabilities 1,661,175 1,524,449 1,359,243 Total liabilities 55,847,823 55,255,577 52,798,307 Equity: 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 170,808,134, 170,141,492 and 170,012,527 respectively; outstanding 146,153,276, 145,486,634 and 145,357,669 respectively 170,808 170,141 170,013 Additional paid-in capital 3,933,548 3,920,346 3,908,118 Treasury stock, at cost; 24,654,858 shares (944,484 ) (944,484 ) (944,484 ) Accumulated other comprehensive income (loss), net (1,395,175 ) (1,442,117 ) (1,026,705 ) Retained earnings 2,480,686 2,234,770 1,940,351 Total Synovus Financial Corp. shareholders’ equity 4,782,528 4,475,801 4,584,438 Noncontrolling interest in subsidiary 25,240 — — Total equity 4,807,768 4,475,801 4,584,438 Total liabilities and equity $ 60,655,591 $ 59,731,378 $ 57,382,745 Synovus AVERAGE BALANCES, INTEREST, AND YIELDS/RATES (Unaudited) Second Quarter 2023 First Quarter 2023 Second 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) $ 35,628,637 $ 566,823 6.38 % $ 35,030,809 $ 526,529 6.10 % $ 31,870,387 $ 308,442 3.88 % Consumer loans (1) (2) 8,470,478 104,545 4.94 8,762,631 104,147 4.78 8,720,488 83,826 3.86 Less: Allowance for loan losses (466,700 ) — — (445,192 ) — — (415,372 ) — — Loans, net 43,632,415 671,368 6.17 43,348,248 630,676 5.89 40,175,503 392,268 3.92 Investment securities available for sale 11,200,717 60,421 2.16 11,293,958 61,054 2.16 11,153,091 50,312 1.81 Trading account assets 21,328 309 5.80 11,338 124 4.39 11,987 73 2.44 Other earning assets(4) 1,446,425 18,081 4.95 1,513,800 17,212 4.55 813,028 1,660 0.81 FHLB and Federal Reserve Bank stock 280,248 4,301 6.14 306,935 3,355 4.37 179,837 1,820 4.05 Mortgage loans held for sale 54,603 852 6.24 36,497 566 6.20 85,299 921 4.32 Other loans held for sale 546,224 4,949 3.58 443,690 5,011 4.52 725,762 7,678 4.19 Total interest earning assets 57,181,960 $ 760,281 5.33 % 56,954,466 $ 717,998 5.11 % 53,144,507 $ 454,732 3.43 % Cash and due from banks 646,066 643,502 538,647 Premises and equipment 369,039 370,275 385,457 Other real estate — — 11,439 Cash surrender value of bank-owned life insurance 1,095,866 1,091,080 1,077,231 Other assets(5) 1,222,146 1,074,238 1,379,659 Total assets $ 60,515,077 $ 60,133,561 $ 56,536,940 Liabilities and Equity Interest-bearing liabilities: Interest-bearing demand deposits $ 9,891,375 $ 41,803 1.70 % $ 9,091,166 $ 23,221 1.04 % $ 9,513,334 $ 3,598 0.15 % Money market accounts 13,468,210 85,397 2.54 14,395,050 72,615 2.05 15,328,395 6,850 0.18 Savings deposits 1,276,040 281 0.09 1,370,173 211 0.06 1,506,195 72 0.02 Time deposits 4,866,221 39,551 3.26 3,601,288 21,496 2.42 2,829,684 1,688 0.24 Brokered deposits 6,342,751 74,748 4.73 5,553,970 56,392 4.12 2,878,536 6,293 0.88 Federal funds purchased and securities sold under repurchase agreements 88,591 351 1.57 133,360 670 2.01 246,737 219 0.35 Other short-term borrowings 455,050 5,566 4.84 1,677,519 18,994 4.53 480,999 896 0.74 Long-term debt 3,821,126 55,915 5.82 3,148,062 42,529 5.41 878,413 8,768 3.99 Total interest-bearing liabilities 40,209,364 $ 303,612 3.03 % 38,970,588 $ 236,128 2.46 % 33,662,293 $ 28,384 0.33 % Non-interest-bearing demand deposits 13,874,482 15,014,224 16,959,850 Other liabilities 1,556,863 1,522,827 1,245,116 Total equity 4,874,368 4,625,922 4,669,681 Total liabilities and equity $ 60,515,077 $ 60,133,561 $ 56,536,940 Net interest income and net interest margin, taxable equivalent (6) $ 456,669 3.20 % $ 481,870 3.43 % $ 426,348 3.22 % Less: taxable-equivalent adjustment 1,138 1,119 960 Net interest income $ 455,531 $ 480,751 $ 425,388 (1) Average loans are shown net of deferred fees and costs. NPLs are included. (2) Interest income includes net loan fees as follows: Second Quarter 2023 — $11.3 million, First Quarter 2023 — $11.5 million, and Second Quarter 2022 — $13.0 million. (3) Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans 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 $(1.46) billion, $(1.52) billion, and $(923.1) million for the Second Quarter 2023, First Quarter 2023, and Second 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 AVERAGE BALANCES, INTEREST, AND YIELDS/RATES (Unaudited) Six Months Ended June 30, 2023 2022 (dollars in thousands) Average Balance Interest Yield/ Rate Average Balance Interest Yield/ Rate Assets Interest earning assets: Commercial loans (1) (2) (3) $ 35,331,375 $ 1,093,352 6.24 % $ 31,316,646 $ 589,029 3.79 % Consumer loans (1) (2) 8,615,748 208,693 4.87 8,657,598 165,194 3.83 Less: Allowance for loan losses (456,005 ) (419,639 ) Loans, net 43,491,118 1,302,045 6.03 39,554,605 754,223 3.84 Investment securities available for sale 11,247,080 121,475 2.16 11,206,150 97,562 1.74 Trading account assets 16,360 434 5.30 10,540 112 2.13 Other earning assets(4) 1,479,926 35,292 4.74 1,363,223 2,475 0.36 FHLB and Federal Reserve Bank stock 293,518 7,656 5.22 170,006 2,505 2.95 Mortgage loans held for sale 45,600 1,418 6.22 94,542 1,803 3.81 Other loans held for sale 495,240 9,960 4.00 661,768 12,978 3.90 Total interest earning assets 57,068,842 $ 1,478,280 5.22 % 53,060,834 $ 871,658 3.31 % Cash and due from banks 644,791 543,638 Premises and equipment 369,654 392,079 Other real estate — 11,598 Cash surrender value of bank-owned life insurance 1,093,486 1,074,076 Other assets(5) 1,148,600 1,613,313 Total assets $ 60,325,373 $ 56,695,538 Liabilities and Equity Interest-bearing liabilities: Interest-bearing demand deposits $ 9,493,481 $ 65,024 1.38 % $ 9,531,330 $ 5,970 0.13 % Money market accounts 13,929,069 158,012 2.29 15,685,030 12,199 0.16 Savings deposits 1,322,846 491 0.07 1,483,547 139 0.02 Time deposits 4,237,249 61,047 2.91 2,919,242 3,826 0.26 Brokered deposits 5,950,539 131,141 4.44 2,833,580 10,026 0.71 Federal funds purchased and securities sold under repurchase agreements 110,852 1,021 1.83 220,689 230 0.21 Other short-term borrowings 1,062,908 24,559 4.60 244,202 896 0.73 Long-term debt 3,486,453 98,444 5.63 930,131 18,913 4.07 Total interest-bearing liabilities 39,593,397 $ 539,739 2.75 % 33,847,751 $ 52,199 0.31 % Non-interest-bearing demand deposits 14,441,205 16,727,040 Other liabilities 1,539,939 1,195,043 Total equity 4,750,832 4,925,704 Total liabilities and equity $ 60,325,373 $ 56,695,538 Net interest income, taxable equivalent net interest margin (6) $ 938,541 3.32 % $ 819,459 3.11 % Less: taxable-equivalent adjustment 2,258 1,824 Net interest income $ 936,283 $ 817,635 (1) Average loans are shown net of deferred fees and costs. NPLs are included. (2) Interest income includes net loan fees as follows: 2023 — $22.8 million and 2022 — $33.7 million. (3) Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans 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 $(1.49) billion and $(587.1) million for the six months ended June 30, 2023 and 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) Total Loans Total Loans Linked Quarter Total Loans Year/Year (Dollars in thousands) Loan Type June 30, 2023 March 31, 2023 % Change June 30, 2022 % Change Commercial, Financial, and Agricultural $ 14,166,890 $ 14,201,398 — % $ 13,018,089 9 % Owner-Occupied 8,364,342 8,398,778 — 7,760,236 8 Total Commercial & Industrial 22,531,232 22,600,176 — 20,778,325 8 Multi-Family 3,597,497 3,374,129 7 2,547,706 41 Hotels 1,771,381 1,737,163 2 1,597,930 11 Office Buildings 3,031,806 3,071,236 (1 ) 2,680,399 13 Shopping Centers 1,329,492 1,332,078 — 1,458,902 (9 ) Warehouses 1,068,734 1,020,921 5 811,738 32 Other Investment Property 1,471,356 1,441,303 2 1,311,373 12 Total Investment Properties 12,270,266 11,976,830 2 10,408,048 18 1-4 Family Construction 205,459 201,896 2 234,379 (12 ) 1-4 Family Investment Mortgage 410,267 394,754 4 407,476 1 Total 1-4 Family Properties 615,726 596,650 3 641,855 (4 ) Commercial Development 60,910 63,004 (3 ) 109,764 (45 ) Residential Development 98,229 106,872 (8 ) 156,816 (37 ) Land Acquisition 248,767 253,399 (2 ) 186,934 33 Land and Development 407,906 423,275 (4 ) 453,514 (10 ) Total Commercial Real Estate 13,293,898 12,996,755 2 11,503,417 16 Consumer Mortgages 5,379,284 5,246,640 3 5,124,523 5 Home Equity 1,773,987 1,757,250 1 1,579,218 12 Credit Cards 187,677 184,595 2 194,290 (3 ) Other Consumer Loans 1,187,459 1,259,523 (6 ) 2,025,007 (41 ) Total Consumer 8,528,407 8,448,008 1 8,923,038 (4 ) Total $ 44,353,537 $ 44,044,939 1 % $ 41,204,780 8 % NON-PERFORMING LOANS COMPOSITION (Unaudited) Total Non-performing Loans Total Non-performing Loans Linked Quarter Total Non-performing Loans Year/Year (Dollars in thousands) Loan Type June 30, 2023 March 31, 2023 % Change June 30, 2022 % Change Commercial, Financial, and Agricultural $ 144,415 $ 94,196 53 % $ 48,601 197 % Owner-Occupied 22,197 25,591 (13 ) 11,398 95 Total Commercial & Industrial 166,612 119,787 39 59,999 178 Multi-Family 1,748 1,806 (3 ) 2,598 (33 ) Office Buildings 28,024 190 nm 1,796 nm Shopping Centers 699 727 (4 ) 750 (7 ) Warehouses 218 222 (2 ) 924 (76 ) Other Investment Property 664 668 (1 ) 1,302 (49 ) Total Investment Properties 31,353 3,613 768 7,370 325 1-4 Family Construction 632 — nm 55 nm 1-4 Family Investment Mortgage 3,525 3,515 — 3,063 15 Total 1-4 Family Properties 4,157 3,515 18 3,118 33 Commercial Development — — nm 432 (100 ) Residential Development 267 267 — 399 (33 ) Land Acquisition 871 886 (2 ) 1,093 (20 ) Land and Development 1,138 1,153 (1 ) 1,924 (41 ) Total Commercial Real Estate 36,648 8,281 343 12,412 195 Consumer Mortgages 41,877 39,536 6 22,857 83 Home Equity 9,936 7,967 25 8,100 23 Other Consumer Loans 6,433 6,889 (7 ) 5,656 14 Total Consumer 58,246 54,392 7 36,613 59 Total $ 261,506 $ 182,460 43 % $ 109,024 140 % Synovus CREDIT QUALITY DATA (Unaudited) (Dollars in thousands) 2023 2022 Second Quarter Second First Fourth Third Second '23 vs '22 Quarter Quarter Quarter Quarter Quarter % Change Non-performing Loans (NPLs) $ 261,506 182,460 128,061 122,094 109,024 140 % Impaired Loans Held for Sale — — — 447 — nm Other Real Estate and Other Assets — — 15,320 15,320 26,759 (100 ) Non-performing Assets (NPAs) 261,506 182,460 143,381 137,861 135,783 93 Allowance for Loan Losses (ALL) 471,238 457,010 443,424 421,359 407,837 16 Reserve for Unfunded Commitments 55,729 57,473 57,455 57,936 50,559 10 Allowance for Credit Losses (ACL) 526,967 514,483 500,879 479,295 458,396 15 Net Charge-Offs - Quarter 26,396 18,550 13,300 4,682 16,565 Net Charge-Offs - YTD 44,947 18,550 53,156 39,856 35,174 Net Charge-Offs / Average Loans - Quarter (1) 0.24 % 0.17 0.12 0.04 0.16 Net Charge-Offs / Average Loans - YTD (1) 0.20 0.17 0.13 0.13 0.18 NPLs / Loans 0.59 0.41 0.29 0.29 0.26 NPAs / Loans, ORE and specific other assets 0.59 �� 0.41 0.33 0.32 0.33 ACL/Loans 1.19 1.17 1.15 1.13 1.11 ALL/Loans 1.06 1.04 1.01 0.99 0.99 ACL/NPLs 201.51 281.97 391.13 392.56 420.45 ALL/NPLs 180.20 250.47 346.26 345.11 374.08 Past Due Loans over 90 days and Still Accruing $ 3,643 3,529 3,373 3,443 2,251 62 As a Percentage of Loans Outstanding 0.01 % 0.01 0.01 0.01 0.01 Total Past Due Loans and Still Accruing $ 84,946 55,053 65,568 63,545 56,160 51 As a Percentage of Loans Outstanding 0.19 % 0.12 0.15 0.15 0.14 (1) Ratio is annualized. SELECTED CAPITAL INFORMATION (1) (Unaudited) (Dollars in thousands) June 30, 2023 December 31, 2022 June 30, 2022 Common Equity Tier 1 Capital Ratio 9.85 % 9.63 9.46 Tier 1 Capital Ratio 10.88 10.68 10.56 Total Risk-Based Capital Ratio 12.79 12.54 12.43 Tier 1 Leverage Ratio 9.23 9.07 9.03 Total Synovus Financial Corp. shareholders' equity as a Percentage of Total Assets 7.88 7.49 7.99 Tangible Common Equity Ratio (2) (4) 6.17 5.84 6.26 Book Value Per Common Share (3) $ 29.05 27.07 27.84 Tangible Book Value Per Common Share (2) 25.37 23.78 24.52 (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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