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 fourth quarter 2023 By: Synovus Financial Corp. via Business Wire January 17, 2024 at 17:44 PM EST Diluted earnings per share of $0.41 vs. $1.35 in 4Q22 Adjusted diluted earnings per share of $0.80 vs. $1.35 in 4Q22 $51 million FDIC special assessment reduced 4Q23 reported and adjusted EPS by $0.26 Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter and year ended Dec. 31, 2023. “Synovus' 2023 financial performance is a testament to our resilience and the strength of our business model,” said Synovus Chairman, CEO and President Kevin Blair. “Amid a challenging economic landscape in 2023, we broadened client relationships, further diversified our business mix, streamlined expenses and took strategic actions to optimize the balance sheet. Our strong banking footprint and ongoing investments in talent, capabilities, functionalities and new revenue sources fuel the bank’s path to solid growth. We persist in bolstering our core deposit generation, enriching lending diversification, enhancing expense efficiency and delivering world-class client service. As we execute our plan, we're confident momentum will build throughout 2024 and beyond for Synovus.” 2023 Highlights Net income available to common shareholders for 2023 was $507.8 million, or $3.46 per diluted share, compared to $724.7 million, or $4.95 per diluted share in 2022. Adjusted EPS for 2023 was $4.12 per diluted share compared to $4.93 per diluted share in 2022. The $51 million FDIC special assessment incurred during the fourth quarter 2023 reduced reported and adjusted EPS by $0.26. Pre-provision net revenue was $885.2 million in 2023 compared to $1.05 billion in 2022. Net interest income was $1.82 billion in 2023, up from $1.80 billion in the prior year, largely attributable to average loan growth and higher earning asset yields, which combined to more than offset rising funding costs. During 2023, Synovus sold $422 million in third-party consumer loans and $1.2 billion in medical office building loans with the proceeds used to pay down wholesale borrowings. Period-end loans declined $311.9 million, or 1%, in 2023 as commercial and industrial growth was more than offset by declines in commercial real estate and consumer loans. Period-end deposits increased $1.87 billion, or 4%, primarily driven by growth in time deposits and interest-bearing demand deposits, partially offset by a decline in non-interest-bearing deposits. Brokered deposits increased $744.0 million, or 14%, in 2023. During the fourth quarter 2023, Synovus repositioned its securities portfolio by selling $1.3 billion of bonds, which resulted in securities losses of $78 million. The proceeds have been reinvested in other high-quality liquid assets with better yields, which should augment 2024 net interest income by an estimated $28 million. Non-interest revenue was $404.0 million, down 1% from 2022. Adjusted non-interest revenue of $460.7 million grew 11% in 2023, primarily attributable to fee income related to treasury and payment solutions, capital markets and wealth management, as well as fees from banking as a service. Non-interest expense was $1.34 billion, up 15%, and adjusted non-interest expense increased 9% year over year in 2023 to $1.26 billion, but was significantly impacted by the $51 million FDIC special assessment. Credit quality remains healthy. Net charge-offs were 0.35% of average loans or 0.28%, excluding the loan sales in the third quarter, compared to 0.13% in 2022. The provision for credit losses was $189.1 million in 2023 compared to a provision of $84.6 million for the prior year. The allowance for credit losses ended the year at 1.24% compared to 1.15% at the end of 2022. The preliminary year-end CET1 ratio increased 59 basis points year over year to 10.22%, which is within our target operating range of 10.00% to 10.50%. Fourth Quarter 2023 Highlights Net income available to common shareholders was $60.6 million, or $0.41 per diluted share, down $0.19 sequentially and down $0.94 compared to the fourth quarter 2022. The $51 million FDIC special assessment impacted fourth quarter 2023 reported and adjusted EPS by $0.26. Pre-provision net revenue of $135.8 million declined $60.9 million, or 31%, sequentially and was down $159.0 million, or 54%, compared to the fourth quarter 2022. Net interest income declined $5.9 million, or 1%, compared to the prior quarter and was down $64.1 million, or 13%, compared to the fourth quarter 2022, primarily attributable to a decline in average earnings assets and higher funding costs. Net interest margin was 3.11%, which was stable from the third quarter supported by rising asset yields, lower than expected core interest-bearing deposit cost and a decline in borrowings. Period-end loans declined $275.4 million, or 1%, from the third quarter as core commercial lending growth was more than offset by softer overall loan production, higher loan paydowns and strategic declines in certain loan categories such as non-relationship syndicated lending and third-party consumer lending. Core deposits increased $714.1 million, or 2%, sequentially. Total deposits ended the quarter at $50.74 billion, an increase of $535.3 million, or 1%, sequentially as a result of the focus on deposit production and seasonally higher commercial deposits and public funds. Total deposit costs increased 19 basis points from the third quarter 2023 to 2.50%. The bank's total deposit beta cycle to date through the fourth quarter 2023 has been 45%. Non-interest revenue of $51.5 million declined $55.7 million, or 52.0%, sequentially and decreased $51.0 million, or 50%, compared to the fourth quarter 2022. Non-interest revenue was impacted by $78 million in securities losses. Adjusted non-interest revenue of $126.2 million rose $19.9 million, or 19%, sequentially and increased $25.3 million, or 25%, compared to the fourth quarter 2022. The growth was primarily attributable to higher GreenSky income as well as stronger treasury and payment solutions and non-GLOBALT wealth management fees. On a sequential quarter basis, non-interest expense of $352.9 million was flat while adjusted non-interest expense increased 15% to $353.1 million, and compared to the prior year, non-interest expense and adjusted non-interest expense were up 14% and 15%, respectively. All comparisons were significantly impacted by the $51 million FDIC special assessment. Headcount declined 2% sequentially and 5% year over year. Credit quality ratios remain healthy. The non-performing loan and asset ratios were slightly higher at 0.66% and 0.66%, respectively; the net charge-off ratio for the quarter was 0.38%, and total past dues were 0.14% of total loans outstanding. Provision for credit losses of $45.5 million declined $27.1 million sequentially and compares to $72.6 million in the third quarter of 2023. The allowance for credit losses ratio (to loans) of 1.24% was up 2 basis points sequentially and up 9 basis points compared to the prior year. The quarter over quarter increase primarily reflects loan performance during the fourth quarter. The preliminary CET1 ratio rose sequentially to 10.22% as core earnings accretion more than offset the impact of the $51 million FDIC special assessment and $78 million in securities losses during the fourth quarter. Fourth Quarter 2023 Summary Reported Adjusted (dollars in thousands) 4Q23 3Q23 4Q22 4Q23 3Q23 4Q22 Net income available to common shareholders $ 60,645 $ 87,423 $ 197,479 $ 116,901 $ 122,770 $ 197,576 Diluted earnings per share 0.41 0.60 1.35 0.80 0.84 1.35 Total revenue 488,682 550,298 603,785 564,593 550,552 603,359 Total loans 43,404,490 43,679,910 43,716,353 N/A N/A N/A Total deposits 50,739,185 50,203,890 48,871,559 N/A N/A N/A Return on avg assets 0.47 % 0.64 % 1.38 % 0.84 % 0.87 % 1.39 % Return on avg common equity 5.9 8.2 20.9 11.3 11.5 20.9 Return on avg tangible common equity 7.0 9.7 24.2 13.3 13.5 24.2 Net interest margin 3.11 % 3.11 % 3.56 % N/A N/A N/A Efficiency ratio-TE(1)(2) 72.03 64.11 51.08 61.97 55.01 50.58 NCO ratio-QTD 0.38 0.61 0.12 N/A N/A N/A NPA ratio 0.66 0.64 0.33 N/A N/A N/A (1) Taxable equivalent (2) Adjusted tangible efficiency ratio Balance Sheet Loans* (dollars in millions) 4Q23 3Q23 Linked Quarter Change Linked Quarter % Change 4Q22 Year/Year Change Year/Year % Change Commercial & industrial $ 22,598.5 $ 22,781.0 $ (182.5 ) (1 )% $ 22,066.7 $ 531.8 2 % Commercial real estate 12,316.8 12,394.9 (78.1 ) (1 ) 12,650.3 (333.6 ) (3 ) Consumer 8,489.2 8,504.1 (14.9 ) — 8,999.4 (510.1 ) (6 ) Total loans $ 43,404.5 $ 43,679.9 $ (275.4 ) (1 )% $ 43,716.4 $ (311.9 ) (1 )% * Amounts may not total due to rounding Deposits* (dollars in millions) 4Q23 3Q23 Linked Quarter Change Linked Quarter % Change 4Q22 Year/Year Change Year/Year % Change Non-interest-bearing DDA $ 11,801.2 $ 12,395.1 $ (593.9 ) (5)% $ 14,574.5 $ (2,773.3 ) (19 )% Interest-bearing DDA 6,541.0 6,276.1 264.9 4 5,761.4 779.6 14 Money market 10,819.7 10,786.3 33.5 — 12,480.7 (1,661.0 ) (13 ) Savings 1,062.6 1,132.5 (69.9 ) (6 ) 1,396.4 (333.8 ) (24 ) Public funds 7,349.5 6,885.7 463.8 7 6,635.6 714.0 11 Time deposits 7,122.2 6,506.4 615.8 9 2,724.1 4,398.1 161 Brokered deposits 6,043.0 6,221.8 (178.8 ) (3 ) 5,299.0 744.0 14 Total deposits $ 50,739.2 $ 50,203.9 $ 535.3 1 % $ 48,871.6 $ 1,867.6 4 % * Amounts may not total due to rounding Income Statement Summary* (in thousands, except per share data) 4Q23 3Q23 Linked Quarter Change Linked Quarter % Change 4Q22 Year/Year Change Year/Year % Change Net interest income $ 437,214 $ 443,159 $ (5,945 ) (1 )% $ 501,346 $ (64,132 ) (13 )% Non-interest revenue 51,468 107,139 (55,671 ) (52 ) 102,439 (50,971 ) (50 ) Non-interest expense 352,858 353,532 (674 ) — 308,996 43,862 14 Provision for (reversal of) credit losses 45,472 72,572 (27,100 ) (37 ) 34,884 10,588 30 Income before taxes $ 90,352 $ 124,194 $ (33,842 ) (27 )% $ 259,905 $ (169,553 ) (65 )% Income tax expense 20,779 27,729 (6,950 ) (25 ) 54,135 (33,356 ) (62 ) Net income 69,573 96,465 (26,892 ) (28 ) 205,770 (136,197 ) (66 ) Less: Net income (loss) attributable to noncontrolling interest (768 ) (630 ) (138 ) 22 — (768 ) nm Net income attributable to Synovus Financial Corp. 70,341 97,095 (26,754 ) (28 ) 205,770 (135,429 ) (66 ) Less: Preferred stock dividends 9,696 9,672 24 — 8,291 1,405 17 Net income available to common shareholders $ 60,645 $ 87,423 $ (26,778 ) (31 )% $ 197,479 $ (136,834 ) (69 )% Weighted average common shares outstanding, diluted 146,877 146,740 137 — 146,528 349 — Diluted earnings per share $ 0.41 $ 0.60 $ (0.19 ) (32 )% $ 1.35 $ (0.94 ) (70 )% Adjusted diluted earnings per share $ 0.80 $ 0.84 $ (0.04 ) (5 ) $ 1.35 $ (0.55 ) (41 ) % Effective tax rate 23.00 % 22.33 % 20.83 % * Amounts may not total due to rounding Capital Ratios 4Q23 3Q23 4Q22 Common equity Tier 1 capital (CET1) ratio 10.22 % * 10.13 % 9.63 % Tier 1 capital ratio 11.28 * 11.18 10.68 Total risk-based capital ratio 13.07 * 13.12 12.54 Tier 1 leverage ratio 9.49 * 9.38 9.07 Tangible common equity ratio 6.84 5.90 5.84 * Ratios are preliminary Fourth Quarter 2023 Earnings Conference Call Synovus will host an earnings highlights conference call at 8:30 a.m. ET on Jan. 18, 2024. The earnings call will be accompanied by a slide presentation. Shareholders and other interested parties may listen to this conference call via simultaneous internet broadcast. For a link to the webcast, go to investor.synovus.com/events. The replay will be archived for 12 months and will be available 30-45 minutes after the call. Synovus Financial Corp. is a financial services company based in Columbus, Georgia, with approximately $60 billion in assets. Synovus provides commercial and consumer banking and a full suite of specialized products and services, including private banking, treasury management, wealth management, mortgage services, premium finance, asset-based lending, structured lending, capital markets and international banking. Synovus has 246 branches in Georgia, Alabama, South Carolina, Florida and Tennessee. Synovus is a Great Place to Work-Certified Company and is on the web at synovus.com and on X, formerly known as Twitter, Facebook, LinkedIn and Instagram. Forward-Looking Statements This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements through Synovus’ use of words such as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the future or otherwise regarding the outlook for Synovus’ future business and financial performance and/or the performance of the banking industry and economy in general. These forward-looking statements include, among others, our expectations regarding our future operating and financial performance; expectations on our intended strategies, initiatives, and other operational and execution goals; expectations on credit quality and performance; and the assumptions underlying our expectations. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Synovus to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, Synovus’ management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements in this press release. Many of these factors are beyond Synovus’ ability to control or predict. These forward-looking statements are based upon information presently known to Synovus’ management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in Synovus’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2022, under the captions “Cautionary Notice Regarding Forward-Looking Statements” and “Risk Factors” and in Synovus’ quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as otherwise may be required by law. Non-GAAP Financial Measures The measures entitled adjusted net income available to common shareholders; adjusted diluted earnings per share; adjusted non-interest revenue, adjusted non-interest expense; adjusted revenue; adjusted tangible efficiency ratio; adjusted return on average assets; adjusted return on average common equity; return on average tangible common equity; adjusted return on average tangible common equity; and tangible common equity ratio are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are net income available to common shareholders; diluted earnings per share; total non-interest revenue; total non-interest expense; total revenue; efficiency ratio-TE; return on average assets; return on average common equity; and the ratio of total Synovus Financial Corp. shareholders' equity to total assets, respectively. Management believes that these non-GAAP financial measures provide meaningful additional information about Synovus to assist management and investors in evaluating Synovus’ operating results, financial strength, the performance of its business, and the strength of its capital position. However, these non-GAAP financial measures have inherent limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of operating results or capital position as reported under GAAP. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant items and other factors, and since they are not required to be uniformly applied, they may not be comparable to other similarly titled measures at other companies. Adjusted net income available to common shareholders, adjusted diluted earnings per share, adjusted return on average assets, and adjusted return on average common equity are measures used by management to evaluate operating results exclusive of items that are not indicative of ongoing operations and impact period-to-period comparisons. Adjusted non-interest revenue and adjusted revenue are measures used by management to evaluate non-interest revenue and total revenue exclusive of fair value adjustment on non-qualified deferred compensation and other items not indicative of ongoing operations that could impact period-to-period comparisons. Adjusted non-interest expense and the adjusted tangible efficiency ratio are measures utilized by management to measure the success of expense management initiatives focused on reducing recurring controllable operating costs. Return on average tangible common equity and adjusted return on average tangible common equity are measures used by management to compare Synovus’ performance with other financial institutions because it calculates the return available to common shareholders without the impact of intangible assets and their related amortization, thereby allowing management to evaluate the performance of the business consistently. The tangible common equity ratio is used by management to assess the strength of our capital position. The computations of these measures are set forth in the tables below. Reconciliation of Non-GAAP Financial Measures (in thousands, except per share data) 4Q23 3Q23 4Q22 2023 2022 Adjusted net income available to common shareholders and adjusted net income per common share, diluted Net income available to common shareholders $ 60,645 $ 87,423 $ 197,479 $ 507,755 $ 724,739 (Gain) on sale of GLOBALT — (1,929 ) — (1,929 ) — Restructuring charges (reversals) 1,231 17,319 (2,372 ) 17,707 (9,690 ) Valuation adjustment to Visa derivative — 900 2,500 3,927 6,000 (Gain) loss on early extinguishment of debt (4,497 ) (526 ) — (5,400 ) 677 Recovery of NPA — — — (13,126 ) — Loss on other loans held for sale — 30,954 — 50,064 — Investment securities (gains) losses, net 77,748 — — 76,718 — Tax effect of adjustments(1) (18,226 ) (11,371 ) (31 ) (31,312 ) 733 Adjusted net income available to common shareholders $ 116,901 $ 122,770 $ 197,576 $ 604,404 $ 722,459 Weighted average common shares outstanding, diluted 146,877 146,740 146,528 146,734 146,481 Net income per common share, diluted $ 0.41 $ 0.60 $ 1.35 $ 3.46 $ 4.95 Adjusted net income per common share, diluted 0.80 0.84 1.35 4.12 4.93 (1) An assumed marginal tax rate of 24.5% for 4Q23 and 2023 and 24.3% for 3Q23, 4Q22, and 2022 was applied. Reconciliation of Non-GAAP Financial Measures, continued (dollars in thousands) 4Q23 3Q23 4Q22 2023 2022 Adjusted non-interest revenue Total non-interest revenue $ 51,468 $ 107,139 $ 102,439 $ 404,010 $ 409,336 (Gain) on sale of GLOBALT — (1,929 ) — (1,929 ) — Recovery of NPA — — — (13,126 ) — Investment securities (gains) losses, net 77,748 — — 76,718 — Fair value adjustment on non-qualified deferred compensation (3,053 ) 1,035 (1,557 ) (4,987 ) 4,054 Adjusted non-interest revenue $ 126,163 $ 106,245 $ 100,882 $ 460,686 $ 413,390 Adjusted non-interest expense Total non-interest expense $ 352,858 $ 353,532 $ 308,996 $ 1,335,424 $ 1,157,506 (Loss) gain on other loans held for sale — (30,954 ) — (50,064 ) — Restructuring (charges) reversals (1,231 ) (17,319 ) 2,372 (17,707 ) 9,690 Valuation adjustment to Visa derivative — (900 ) (2,500 ) (3,927 ) (6,000 ) Gain (loss) on early extinguishment of debt 4,497 526 — 5,400 (677 ) Fair value adjustment on non-qualified deferred compensation (3,053 ) 1,035 (1,557 ) (4,987 ) 4,054 Adjusted non-interest expense $ 353,071 $ 305,920 $ 307,311 $ 1,264,139 $ 1,164,573 (dollars in thousands) 4Q23 3Q23 4Q22 Adjusted revenue and tangible efficiency ratio Adjusted non-interest expense $ 353,071 $ 305,920 $ 307,311 Amortization of intangibles (3,168 ) (3,042 ) (2,118 ) Adjusted tangible non-interest expense $ 349,903 $ 302,878 $ 305,193 Net interest income $ 437,214 $ 443,159 $ 501,346 Total non-interest revenue 51,468 107,139 102,439 Total revenue 488,682 550,298 603,785 Tax equivalent adjustment 1,216 1,148 1,131 Total TE revenue 489,898 551,446 604,916 (Gain) on sale of GLOBALT — (1,929 ) — Recovery of NPA — — — Investment securities (gains) losses, net 77,748 — — Fair value adjustment on non-qualified deferred compensation (3,053 ) 1,035 (1,557 ) Adjusted revenue $ 564,593 $ 550,552 $ 603,359 Efficiency ratio-TE 72.03 % 64.11 % 51.08 % Adjusted tangible efficiency ratio 61.97 55.01 50.58 Reconciliation of Non-GAAP Financial Measures, continued (in thousands, except per share data) 4Q23 3Q23 4Q22 Adjusted return on average assets (annualized) Net income $ 69,573 $ 96,465 $ 205,770 Loss on other loans held for sale — 30,954 — Restructuring charges (reversals) 1,231 17,319 (2,372 ) (Gain) on sale of GLOBALT — (1,929 ) — Valuation adjustment to Visa derivative — 900 2,500 (Gain) on early extinguishment of debt (4,497 ) (526 ) — Investment securities (gains) losses, net 77,748 — — Tax effect of adjustments(1) (18,226 ) (11,371 ) (31 ) Adjusted net income $ 125,829 $ 131,812 $ 205,867 Net income annualized $ 276,023 $ 382,714 $ 816,370 Adjusted net income annualized $ 499,213 $ 522,950 $ 816,755 Total average assets $ 59,164,065 $ 59,916,679 $ 58,963,417 Return on average assets (annualized) 0.47 % 0.64 % 1.38 % Adjusted return on average assets (annualized) 0.84 0.87 1.39 (1) An assumed marginal tax rate of 24.5% for 4Q23 and 24.3% for both 3Q23 and 4Q22 was applied. Reconciliation of Non-GAAP Financial Measures, continued (dollars in thousands) 4Q23 3Q23 4Q22 Adjusted return on average common equity, return on average tangible common equity, and adjusted return on average tangible common equity (annualized) Net income available to common shareholders $ 60,645 $ 87,423 $ 197,479 Loss on other loans held for sale — 30,954 — Restructuring charges (reversals) 1,231 17,319 (2,372 ) (Gain) on sale of GLOBALT — (1,929 ) — Valuation adjustment to Visa derivative — 900 2,500 (Gain) on early extinguishment of debt (4,497 ) (526 ) — Subtract/add: Investment securities (gains) losses, net 77,748 — — Subtract/add: Tax effect of adjustments(1) (18,226 ) (11,371 ) (31 ) Adjusted net income available to common shareholders $ 116,901 $ 122,770 $ 197,576 Adjusted net income available to common shareholders annualized $ 463,792 $ 487,077 $ 783,861 Amortization of intangibles, tax effected, annualized 9,493 9,131 6,358 Adjusted net income available to common shareholders excluding amortization of intangibles annualized $ 473,285 $ 496,208 $ 790,219 Net income available to common shareholders annualized $ 240,602 $ 346,841 $ 783,476 Amortization of intangibles, tax effected, annualized 9,493 9,131 6,358 Net income available to common shareholders excluding amortization of intangibles annualized $ 250,095 $ 355,972 $ 789,834 Total average Synovus Financial Corp. shareholders' equity less preferred stock $ 4,090,163 $ 4,223,422 $ 3,742,927 Average goodwill (479,858 ) (476,408 ) (452,390 ) Average other intangible assets, net (47,502 ) (59,016 ) (28,174 ) Total average Synovus Financial Corp. tangible shareholders' equity less preferred stock $ 3,562,803 $ 3,687,998 $ 3,262,363 Return on average common equity (annualized) 5.9 % 8.2 % 20.9 % Adjusted return on average common equity (annualized) 11.3 11.5 20.9 Return on average tangible common equity (annualized) 7.0 9.7 24.2 Adjusted return on average tangible common equity (annualized) 13.3 13.5 24.2 (1) An assumed marginal tax rate of 24.5% for 4Q23 and 24.3% for both 3Q23 and 4Q22 was applied. Reconciliation of Non-GAAP Financial Measures, continued December 31, September 30, December 31, (dollars in thousands) 2023 2023 2022 Tangible common equity ratio Total assets $ 59,809,534 $ 59,342,930 $ 59,731,378 Goodwill (480,440 ) (479,851 ) (452,390 ) Other intangible assets, net (45,928 ) (49,096 ) (27,124 ) Tangible assets $ 59,283,166 $ 58,813,983 $ 59,251,864 Total Synovus Financial Corp. shareholders' equity $ 5,119,993 $ 4,536,958 $ 4,475,801 Goodwill (480,440 ) (479,851 ) (452,390 ) Other intangible assets, net (45,928 ) (49,096 ) (27,124 ) Preferred stock, no par value (537,145 ) (537,145 ) (537,145 ) Tangible common equity $ 4,056,480 $ 3,470,866 $ 3,459,142 Total Synovus Financial Corp. shareholders’ equity to total assets ratio 8.56 % 7.65 % 7.49 % Tangible common equity ratio 6.84 5.90 5.84 Synovus INCOME STATEMENT DATA (Unaudited) Years Ended (Dollars in thousands, except per share data) December 31, 2023 2022 % Change Interest income $ 3,050,358 $ 2,075,787 47 % Interest expense 1,233,703 278,887 342 Net interest income 1,816,655 1,796,900 1 Provision for (reversal of) credit losses 189,079 84,553 124 Net interest income after provision for credit losses 1,627,576 1,712,347 (5 ) Non-interest revenue: Service charges on deposit accounts 90,096 93,067 (3 ) Fiduciary and asset management fees 78,077 78,414 — Card fees 72,357 61,833 17 Brokerage revenue 83,431 67,034 24 Mortgage banking income 15,157 17,476 (13 ) Capital markets income 32,181 26,702 21 Income from bank-owned life insurance 31,429 29,720 6 Investment securities gains (losses), net (76,718 ) — nm Recovery of NPA 13,126 — nm Other non-interest revenue 64,874 35,090 85 Total non-interest revenue 404,010 409,336 (1 ) Non-interest expense: Salaries and other personnel expense 728,378 681,710 7 Net occupancy, equipment, and software expense 179,581 174,730 3 Third-party processing and other services 86,649 88,617 (2 ) Professional fees 39,854 37,189 7 FDIC insurance and other regulatory fees 94,737 29,083 226 Restructuring charges (reversals) 17,707 (9,690 ) (283 ) Loss on other loans held for sale 50,064 — nm Other operating expenses 138,454 155,867 (11 ) Total non-interest expense 1,335,424 1,157,506 15 Income before income taxes 696,162 964,177 (28 ) Income tax expense 154,021 206,275 (25 ) Net income 542,141 757,902 (28 ) Less: Net income (loss) attributable to noncontrolling interest (1,564 ) — nm Net income attributable to Synovus Financial Corp. 543,705 757,902 (28 ) Less: Preferred stock dividends 35,950 33,163 8 Net income available to common shareholders $ 507,755 $ 724,739 (30 )% Net income per common share, basic 3.48 4.99 (30 )% Net income per common share, diluted 3.46 4.95 (30 ) Cash dividends declared per common share 1.52 1.36 12 Return on average assets 0.90 % 1.32 % (42) bps Return on average common equity 12.17 17.41 (524 ) Weighted average common shares outstanding, basic 146,115 145,364 1 % Weighted average common shares outstanding, diluted 146,734 146,481 — nm - not meaningful bps - basis points Synovus INCOME STATEMENT DATA (Unaudited) (Dollars in thousands, except per share data) 2023 2022 Fourth Quarter Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter 23 vs '22 % Change Interest income $ 788,297 786,039 759,143 716,879 654,654 20 % Interest expense 351,083 342,880 303,612 236,128 153,308 129 Net interest income 437,214 443,159 455,531 480,751 501,346 (13 ) Provision for (reversal of) credit losses 45,472 72,572 38,881 32,154 34,884 30 Net interest income after provision for credit losses 391,742 370,587 416,650 448,597 466,462 (16 ) Non-interest revenue: Service charges on deposit accounts 22,260 21,385 23,477 22,974 23,639 (6 ) Fiduciary and asset management fees 18,149 20,205 20,027 19,696 18,836 (4 ) Card fees 20,872 18,602 17,059 15,824 15,887 31 Brokerage revenue 19,727 20,237 20,908 22,558 19,996 (1 ) Mortgage banking income 3,019 3,671 4,609 3,858 2,554 18 Capital markets income 5,104 6,377 6,975 13,725 6,998 (27 ) Income from bank-owned life insurance 10,324 6,965 6,878 7,262 7,206 43 Investment securities gains (losses), net (77,748 ) — — 1,030 — nm Recovery of NPA — — — 13,126 — nm Other non-interest revenue 29,761 9,697 12,343 13,073 7,323 306 Total non-interest revenue 51,468 107,139 112,276 133,126 102,439 (50 ) Non-interest expense: Salaries and other personnel expense 176,712 179,741 183,001 188,924 182,629 (3 ) Net occupancy, equipment, and software expense 48,146 45,790 42,785 42,860 45,192 7 Third-party processing and other services 21,717 21,439 21,659 21,833 23,130 (6 ) Professional fees 11,147 10,147 9,597 8,963 11,096 — FDIC insurance and other regulatory fees 61,470 11,837 11,162 10,268 8,232 647 Restructuring charges (reversals) 1,231 17,319 (110 ) (733 ) (2,372 ) (152 ) Loss on other loans held for sale — 30,954 2,360 16,750 — nm Other operating expenses 32,435 36,305 36,727 32,987 41,089 (21 ) Total non-interest expense 352,858 353,532 307,181 321,852 308,996 14 Income before income taxes 90,352 124,194 221,745 259,871 259,905 (65 ) Income tax expense 20,779 27,729 47,801 57,712 54,135 (62 ) Net income 69,573 96,465 173,944 202,159 205,770 (66 ) Less: Net income (loss) attributable to noncontrolling (768 ) (630 ) (166 ) — — nm Net income attributable to Synovus Financial Corp. 70,341 97,095 174,110 202,159 205,770 (66 ) Less: Preferred stock dividends 9,696 9,672 8,291 8,291 8,291 17 Net income available to common shareholders $ 60,645 87,423 165,819 193,868 197,479 (69 ) Net income per common share, basic $ 0.41 0.60 1.13 1.33 1.36 (69 )% Net income per common share, diluted 0.41 0.60 1.13 1.32 1.35 (69 ) Cash dividends declared per common share 0.38 0.38 0.38 0.38 0.34 12 Return on average assets * 0.47 % 0.64 1.15 1.36 1.38 (91) bps Return on average common equity * 5.88 8.21 15.45 19.23 20.93 nm Weighted average common shares outstanding, basic 146,372 146,170 146,113 145,799 145,467 1 % Weighted average common shares outstanding, diluted 146,877 146,740 146,550 146,727 146,528 — nm - not meaningful bps - basis points * - ratios are annualized Synovus BALANCE SHEET DATA December 31, 2023 September 30, 2023 December 31, 2022 (Unaudited) (In thousands, except share data) ASSETS Cash and due from banks $ 601,188 $ 604,631 $ 624,097 Interest-bearing funds with Federal Reserve Bank 1,741,059 1,431,356 1,280,684 Interest earning deposits with banks 71,856 65,468 34,632 Federal funds sold and securities purchased under resale agreements 37,323 36,176 38,367 Cash and cash equivalents 2,451,426 2,137,631 1,977,780 Investment securities available for sale, at fair value 9,788,662 9,237,191 9,678,103 Loans held for sale ($47,338, $48,994 and $51,136 measured at fair value, respectively) 52,768 66,558 391,502 Loans, net of deferred fees and costs 43,404,490 43,679,910 43,716,353 Allowance for loan losses (479,385 ) (477,532 ) (443,424 ) Loans, net 42,925,105 43,202,378 43,272,929 Cash surrender value of bank-owned life insurance 1,112,030 1,107,092 1,089,280 Premises, equipment, and software, net 365,851 364,054 370,632 Goodwill 480,440 479,851 452,390 Other intangible assets, net 45,928 49,096 27,124 Other assets 2,587,324 2,699,079 2,471,638 Total assets $ 59,809,534 $ 59,342,930 $ 59,731,378 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits: Non-interest-bearing deposits $ 12,507,616 $ 12,976,574 $ 15,639,899 Interest-bearing deposits 38,231,569 37,227,316 33,231,660 Total deposits 50,739,185 50,203,890 48,871,559 Federal funds purchased and securities sold under repurchase agreements 189,074 98,270 146,588 Other short-term borrowings 3,496 2,362 603,384 Long-term debt 1,932,534 2,704,701 4,109,597 Other liabilities 1,801,097 1,772,139 1,524,449 Total liabilities 54,665,386 54,781,362 55,255,577 Shareholders' equity: Preferred stock – no par value. Authorized 100,000,000 shares; issued 22,000,000 537,145 537,145 537,145 Common stock – $1.00 par value. Authorized 342,857,143 shares; issued 171,360,188, 170,859,506, and 170,141,492 respectively; outstanding 146,705,330, 146,204,648, and 145,486,634 respectively 171,360 170,860 170,141 Additional paid-in capital 3,955,819 3,940,507 3,920,346 Treasury stock, at cost – 24,654,858 shares (944,484 ) (944,484 ) (944,484 ) Accumulated other comprehensive income (loss), net (1,117,073 ) (1,679,404 ) (1,442,117 ) Retained earnings 2,517,226 2,512,334 2,234,770 Total Synovus Financial Corp. shareholders' equity 5,119,993 4,536,958 4,475,801 Noncontrolling interest in subsidiary 24,155 24,610 — Total equity 5,144,148 4,561,568 4,475,801 Total liabilities and shareholders' equity $ 59,809,534 $ 59,342,930 $ 59,731,378 Synovus AVERAGE BALANCES, INTEREST, AND YIELDS/RATES (Unaudited) 2023 2022 (dollars in thousands) Average Balance Interest Yield/ Rate Average Balance Interest Yield/ Rate Assets Interest earning assets: Commercial loans (1) (2) (3) $ 35,188,678 $ 2,263,117 6.43 % $ 32,402,218 $ 1,448,463 4.47 % Consumer loans (1) (2) 8,557,650 426,266 4.98 8,823,424 361,524 4.10 Less: Allowance for loan losses (463,493 ) (421,506 ) — — Loans, net 43,282,835 2,689,383 6.21 40,804,136 1,809,987 4.44 Investment securities available for sale 11,212,956 248,294 2.21 11,208,886 209,951 1.87 Trading account assets 15,486 886 5.72 13,374 261 1.95 Other earning assets(4) 1,414,586 71,349 4.98 1,220,653 18,756 1.52 FHLB and Federal Reserve Bank stock 254,420 14,975 5.89 214,289 6,722 3.14 Mortgage loans held for sale 46,035 2,993 6.50 75,325 3,353 4.45 Other loans held for sale 469,689 27,099 5.69 682,961 30,684 4.43 Total interest earning assets 56,696,007 $ 3,054,979 5.39 % 54,219,624 $ 2,079,714 3.84 % Cash and due from banks 575,370 574,250 Premises and equipment 367,159 385,622 Other real estate — 6,356 Cash surrender value of bank-owned life insurance 1,099,641 1,078,653 Other assets(5) 1,183,691 1,345,568 Total assets $ 59,921,868 $ 57,610,073 Liabilities and Shareholders' Equity Interest-bearing liabilities: Interest-bearing demand deposits $ 9,884,039 $ 176,595 1.79 % $ 9,027,636 $ 25,912 0.29 % Money market accounts 13,511,442 356,562 2.64 15,385,765 79,567 0.52 Savings deposits 1,229,975 1,046 0.09 1,481,372 399 0.03 Time deposits 5,473,405 196,481 3.59 2,667,101 13,902 0.52 Brokered deposits 6,104,461 296,071 4.85 3,644,957 67,452 1.85 Federal funds purchased and securities sold under repurchase agreements 97,114 1,667 1.69 205,753 1,308 0.63 Other short-term borrowings 528,194 24,611 4.60 466,254 10,945 2.32 Long-term debt 3,027,746 180,670 5.92 1,999,595 79,402 3.95 Total interest-bearing liabilities 39,856,376 $ 1,233,703 3.10 % 34,878,433 $ 278,887 0.80 % Non-interest-bearing demand deposits 13,662,660 16,731,967 Other liabilities 1,671,489 1,298,972 Shareholders' equity 4,731,343 4,700,701 Total liabilities and shareholders' equity $ 59,921,868 $ 57,610,073 Net interest income, taxable equivalent net interest margin (6) $ 1,821,276 3.21 % �� $ 1,800,827 3.32 % Less: taxable-equivalent adjustment 4,621 3,927 Net interest income $ 1,816,655 $ 1,796,900 (1) Average loans are shown net of deferred fees and costs. NPLs are included. (2) Interest income includes net loan fees as follows: 2023 — $47.7 million and 2022 — $57.3 million. (3) Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans and investment securities to a taxable-equivalent basis. (4) Includes interest-bearing funds with Federal Reserve Bank, interest earning deposits with banks, and federal funds sold and securities purchased under resale agreements. (5) Includes average net unrealized gains/(losses) on investment securities available for sale of $(1.62) billion and $(985.6) million for the years ended December 31, 2023 and 2022, respectively. (6) The net interest margin is calculated by dividing net interest income-taxable equivalent by average total interest earning assets. Synovus AVERAGE BALANCES, INTEREST, AND YIELDS/RATES (Unaudited) Fourth Quarter 2023 Third Quarter 2023 Fourth Quarter 2022 (dollars in thousands) Average Balance Interest Yield/ Rate Average Balance Interest Yield/ Rate Average Balance Interest Yield/ Rate Assets Interest earning assets: Commercial loans (1) (2) (3) $ 35,106,156 $ 590,588 6.67 % $ 34,990,459 $ 579,177 6.57 % $ 34,103,384 $ 474,439 5.52 % Consumer loans (1) (2) 8,491,244 109,509 5.14 8,509,757 108,065 5.06 9,041,520 101,905 4.50 Less: Allowance for loan losses (480,332 ) (461,385 ) (427,525 ) Loans, net 43,117,068 700,097 6.45 43,038,831 687,242 6.34 42,717,379 576,344 5.36 Investment securities available for sale 11,164,487 65,176 2.33 11,194,291 61,642 2.20 11,296,449 58,840 2.08 Trading account assets 13,067 215 6.59 16,186 237 5.86 15,552 68 1.75 Other earning assets(4) 1,463,176 19,689 5.26 1,237,445 16,369 5.17 1,148,099 10,490 3.58 FHLB and Federal Reserve Bank stock 187,015 3,536 7.56 244,906 3,783 6.18 270,822 2,805 4.14 Mortgage loans held for sale 39,024 696 7.14 53,904 879 6.52 46,240 688 5.95 Other loans held for sale 8,044 104 5.06 881,067 17,035 7.57 514,811 6,550 4.98 Total interest earning assets 55,991,881 $ 789,513 5.59 % 56,666,630 $ 787,187 5.51 % 56,009,352 $ 655,785 4.65 % Cash and due from banks 522,986 509,511 651,189 Premises and equipment 366,647 365,568 375,352 Other real estate — — — Cash surrender value of bank-owned life insurance 1,108,766 1,102,626 1,085,394 Other assets(5) 1,173,785 1,272,344 842,130 Total assets $ 59,164,065 $ 59,916,679 $ 58,963,417 Liabilities and Shareholders' Equity Interest-bearing liabilities: Interest-bearing demand deposits $ 10,422,286 $ 58,588 2.23 % $ 10,114,171 $ 52,983 2.08 % $ 8,627,386 $ 14,160 0.65 % Money market accounts 13,053,781 103,211 3.14 13,147,465 95,339 2.88 14,771,308 46,671 1.25 Savings deposits 1,098,914 275 0.10 1,178,322 280 0.09 1,450,153 176 0.05 Time deposits 7,198,229 75,462 4.16 6,180,584 59,972 3.85 2,567,979 7,648 1.18 Brokered deposits 6,069,055 81,444 5.32 6,442,690 83,486 5.14 4,986,542 39,500 3.14 Federal funds purchased and securities sold under repurchase agreements 93,854 350 1.46 73,344 296 1.58 141,707 437 1.21 Other short-term borrowings 2,672 51 7.50 1,722 — — 660,295 6,383 3.78 Long-term debt 1,922,661 31,702 6.55 3,230,374 50,524 6.18 3,446,306 38,333 4.39 Total interest-bearing liabilities 39,861,452 $ 351,083 3.49 % 40,368,672 $ 342,880 3.37 % 36,651,676 $ 153,308 1.66 % Non-interest-bearing demand deposits 12,744,275 13,049,343 16,569,275 Other liabilities 1,906,686 1,713,131 1,462,394 Shareholders' equity 4,651,652 4,785,533 4,280,072 Total liabilities and shareholders' equity $ 59,164,065 $ 59,916,679 $ 58,963,417 Net interest income, taxable equivalent net interest margin (6) $ 438,430 3.11 % $ 444,307 3.11 % $ 502,477 3.56 % Less: taxable-equivalent adjustment 1,216 1,148 1,131 Net interest income $ 437,214 $ 443,159 $ 501,346 (1) Average loans are shown net of deferred fees and costs. NPLs are included. (2) Interest income includes net loan fees as follows: Fourth Quarter 2023 — $13.1 million, Third Quarter 2023 — $11.8 million, and Fourth Quarter 2022 —$11.9 million. (3) Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans and investment securities to a taxable-equivalent basis. (4) Includes interest-bearing funds with Federal Reserve Bank, interest earning deposits with banks, and federal funds sold and securities purchased under resale agreements (5) Includes average net unrealized gains/(losses) on investment securities available for sale of $(1.89) billion, $(1.60) billion, and $(1.69) billion for the Fourth Quarter 2023, Third Quarter 2023, and Fourth Quarter 2022, respectively. (6) The net interest margin is calculated by dividing annualized net interest income-taxable equivalent by average total interest earning assets. Synovus LOANS OUTSTANDING BY TYPE (Unaudited) (Dollars in thousands) Total Loans Total Loans Linked Quarter Total Loans Year/Year Loan Type December 31, 2023 September 30, 2023 % Change December 31, 2022 % Change Commercial, Financial, and Agricultural $ 14,459,345 $ 14,498,966 — % $ 13,874,416 4 % Owner-Occupied 8,139,148 8,281,988 (2 ) 8,192,240 (1 ) Total Commercial & Industrial 22,598,493 22,780,954 (1 ) 22,066,656 2 Multi-Family 4,098,188 3,930,617 4 3,134,571 31 Hotels 1,803,102 1,790,094 1 1,708,194 6 Office Buildings 1,891,587 1,911,095 (1 ) 3,011,911 (37 ) Shopping Centers 1,319,049 1,327,770 (1 ) 1,403,928 (6 ) Warehouses 854,475 985,723 (13 ) 1,035,152 (17 ) Other Investment Property 1,396,903 1,432,456 (2 ) 1,350,291 3 Total Investment Properties 11,363,304 11,377,755 — 11,644,047 (2 ) 1-4 Family Construction 194,481 224,091 (13 ) 229,263 (15 ) 1-4 Family Investment Mortgage 404,021 396,813 2 387,670 4 Total 1-4 Family Properties 598,502 620,904 (4 ) 616,933 (3 ) Commercial Development 73,022 64,212 14 79,889 (9 ) Residential Development 79,961 92,209 (13 ) 108,661 (26 ) Land Acquisition 201,969 239,773 (16 ) 200,783 1 Land and Development 354,952 396,194 (10 ) 389,333 (9 ) Total Commercial Real Estate 12,316,758 12,394,853 (1 ) 12,650,313 (3 ) Consumer Mortgages 5,411,723 5,391,282 — 5,214,443 4 Home Equity Lines 1,807,399 1,784,356 1 1,757,038 3 Credit Cards 194,141 191,046 2 203,612 (5 ) Other Consumer Loans 1,075,976 1,137,419 (5 ) 1,824,291 (41 ) Total Consumer 8,489,239 8,504,103 — 8,999,384 (6 ) Total $ 43,404,490 $ 43,679,910 (1 ) $ 43,716,353 (1 ) NON-PERFORMING LOANS COMPOSITION (Unaudited) (Dollars in thousands) Total Non-performing Loans Total Non-performing Loans Linked Quarter Total Non-performing Loans Year/Year Loan Type December 31, 2023 September 30, 2023 % Change December 31, 2022 % Change Commercial, Financial, and Agricultural $ 89,870 $ 97,468 (8 ) $ 59,307 52 % Owner-Occupied 91,370 84,505 8 10,104 nm Total Commercial & Industrial 181,240 181,973 — 69,411 161 Multi-Family 1,681 1,702 (1 ) 1,857 (9 ) Office Buildings 35,338 27,810 27 309 nm Shopping Centers 641 653 (2 ) 735 (13 ) Warehouses 196 207 (5 ) 223 (12 ) Other Investment Property 1,914 572 235 349 448 Total Investment Properties 39,770 30,944 29 3,473 nm 1-4 Family Construction — — nm 55 (100 ) 1-4 Family Investment Mortgage 3,056 3,386 (10 ) 3,067 — Total 1-4 Family Properties 3,056 3,386 (10 ) 3,122 (2 ) Commercial Development — — nm — nm Residential Development 267 267 — 267 — Land Acquisition 537 538 — 891 (40 ) Land and Development 804 805 — 1,158 (31 ) Total Commercial Real Estate 43,630 35,135 24 7,753 463 Consumer Mortgages 46,108 43,863 5 36,847 25 Home Equity Lines 10,473 11,620 (10 ) 6,830 53 Other Consumer Loans 6,726 7,941 (15 ) 7,220 (7 ) Total Consumer 63,307 63,424 — 50,897 24 Total $ 288,177 $ 280,532 3 % $ 128,061 125 % Synovus CREDIT QUALITY DATA (Unaudited) (Dollars in thousands) 2023 2022 Fourth Quarter Fourth Third Second First Fourth 23 vs '22 Quarter Quarter Quarter Quarter Quarter % Change Non-performing Loans (NPL) $ 288,177 280,532 261,506 182,460 128,061 125 % Other Real Estate and Other Assets — — — — 15,320 (100 ) Non-performing Assets (NPAs) 288,177 280,532 261,506 182,460 143,381 101 Allowance for Loan Losses (ALL) 479,385 477,532 471,238 457,010 443,424 8 Reserve for Unfunded Commitments 57,230 55,185 55,729 57,473 57,455 — Allowance for Credit Losses (ACL) 536,615 532,717 526,967 514,483 500,879 7 Net Charge-Offs - Quarter 41,574 66,822 26,396 18,550 13,300 Net Charge-Offs - YTD 153,342 111,768 44,946 18,550 53,156 Net Charge-Offs / Average Loans - Quarter (1) 0.38 % 0.61 0.24 0.17 0.12 Net Charge-Offs / Average Loans - YTD (1) 0.35 0.34 0.20 0.17 0.13 NPLs / Loans 0.66 0.64 0.59 0.41 0.29 NPAs / Loans, ORE and specific other assets 0.66 0.64 0.59 0.41 0.33 ACL/Loans 1.24 1.22 1.19 1.17 1.15 ALL/Loans 1.10 1.09 1.06 1.04 1.01 ACL/NPLs 186.21 189.90 201.51 281.97 391.13 ALL/NPLs 166.35 170.22 180.20 250.47 346.26 Past Due Loans over 90 days and Still Accruing $ 5,053 3,792 3,643 3,529 3,373 50 As a Percentage of Loans Outstanding 0.01 % 0.01 0.01 0.01 0.01 Total Past Due Loans and Still Accruing $ 59,099 54,974 84,946 55,053 65,568 (10 ) As a Percentage of Loans Outstanding 0.14 % 0.13 0.19 0.12 0.15 (1) Ratio is annualized. SELECTED CAPITAL INFORMATION (1) (Unaudited) (Dollars in thousands) December 31, 2023 September 30, 2023 December 31, 2022 Common Equity Tier 1 Capital Ratio 10.22 % 10.13 9.63 Tier 1 Capital Ratio 11.28 11.18 10.68 Total Risk-Based Capital Ratio 13.07 13.12 12.54 Tier 1 Leverage Ratio 9.49 9.38 9.07 Total Synovus Financial Corp. shareholders’ equity as a Percentage of Total Assets 8.56 7.65 7.49 Tangible Common Equity Ratio(2)(4) 6.84 5.90 5.84 Book Value Per Common Share(3) $ 31.24 27.36 27.07 Tangible Book Value Per Common Share(2) 27.65 23.74 23.78 (1) Current quarter regulatory capital information is preliminary. (2) Excludes the carrying value of goodwill and other intangible assets from common equity and total assets. (3) Book Value Per Common Share consists of Total Synovus Financial Corp. shareholders' equity less Preferred Stock divided by total common shares outstanding. (4) See "Non-GAAP Financial Measures" for applicable reconciliation. View source version on businesswire.com: https://www.businesswire.com/news/home/20240117039916/en/Contacts Media Contact Audria Belton Media Relations media@synovus.com Investor Contact Jennifer H. Demba, CFA 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 fourth quarter 2023 By: Synovus Financial Corp. via Business Wire January 17, 2024 at 17:44 PM EST Diluted earnings per share of $0.41 vs. $1.35 in 4Q22 Adjusted diluted earnings per share of $0.80 vs. $1.35 in 4Q22 $51 million FDIC special assessment reduced 4Q23 reported and adjusted EPS by $0.26 Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter and year ended Dec. 31, 2023. “Synovus' 2023 financial performance is a testament to our resilience and the strength of our business model,” said Synovus Chairman, CEO and President Kevin Blair. “Amid a challenging economic landscape in 2023, we broadened client relationships, further diversified our business mix, streamlined expenses and took strategic actions to optimize the balance sheet. Our strong banking footprint and ongoing investments in talent, capabilities, functionalities and new revenue sources fuel the bank’s path to solid growth. We persist in bolstering our core deposit generation, enriching lending diversification, enhancing expense efficiency and delivering world-class client service. As we execute our plan, we're confident momentum will build throughout 2024 and beyond for Synovus.” 2023 Highlights Net income available to common shareholders for 2023 was $507.8 million, or $3.46 per diluted share, compared to $724.7 million, or $4.95 per diluted share in 2022. Adjusted EPS for 2023 was $4.12 per diluted share compared to $4.93 per diluted share in 2022. The $51 million FDIC special assessment incurred during the fourth quarter 2023 reduced reported and adjusted EPS by $0.26. Pre-provision net revenue was $885.2 million in 2023 compared to $1.05 billion in 2022. Net interest income was $1.82 billion in 2023, up from $1.80 billion in the prior year, largely attributable to average loan growth and higher earning asset yields, which combined to more than offset rising funding costs. During 2023, Synovus sold $422 million in third-party consumer loans and $1.2 billion in medical office building loans with the proceeds used to pay down wholesale borrowings. Period-end loans declined $311.9 million, or 1%, in 2023 as commercial and industrial growth was more than offset by declines in commercial real estate and consumer loans. Period-end deposits increased $1.87 billion, or 4%, primarily driven by growth in time deposits and interest-bearing demand deposits, partially offset by a decline in non-interest-bearing deposits. Brokered deposits increased $744.0 million, or 14%, in 2023. During the fourth quarter 2023, Synovus repositioned its securities portfolio by selling $1.3 billion of bonds, which resulted in securities losses of $78 million. The proceeds have been reinvested in other high-quality liquid assets with better yields, which should augment 2024 net interest income by an estimated $28 million. Non-interest revenue was $404.0 million, down 1% from 2022. Adjusted non-interest revenue of $460.7 million grew 11% in 2023, primarily attributable to fee income related to treasury and payment solutions, capital markets and wealth management, as well as fees from banking as a service. Non-interest expense was $1.34 billion, up 15%, and adjusted non-interest expense increased 9% year over year in 2023 to $1.26 billion, but was significantly impacted by the $51 million FDIC special assessment. Credit quality remains healthy. Net charge-offs were 0.35% of average loans or 0.28%, excluding the loan sales in the third quarter, compared to 0.13% in 2022. The provision for credit losses was $189.1 million in 2023 compared to a provision of $84.6 million for the prior year. The allowance for credit losses ended the year at 1.24% compared to 1.15% at the end of 2022. The preliminary year-end CET1 ratio increased 59 basis points year over year to 10.22%, which is within our target operating range of 10.00% to 10.50%. Fourth Quarter 2023 Highlights Net income available to common shareholders was $60.6 million, or $0.41 per diluted share, down $0.19 sequentially and down $0.94 compared to the fourth quarter 2022. The $51 million FDIC special assessment impacted fourth quarter 2023 reported and adjusted EPS by $0.26. Pre-provision net revenue of $135.8 million declined $60.9 million, or 31%, sequentially and was down $159.0 million, or 54%, compared to the fourth quarter 2022. Net interest income declined $5.9 million, or 1%, compared to the prior quarter and was down $64.1 million, or 13%, compared to the fourth quarter 2022, primarily attributable to a decline in average earnings assets and higher funding costs. Net interest margin was 3.11%, which was stable from the third quarter supported by rising asset yields, lower than expected core interest-bearing deposit cost and a decline in borrowings. Period-end loans declined $275.4 million, or 1%, from the third quarter as core commercial lending growth was more than offset by softer overall loan production, higher loan paydowns and strategic declines in certain loan categories such as non-relationship syndicated lending and third-party consumer lending. Core deposits increased $714.1 million, or 2%, sequentially. Total deposits ended the quarter at $50.74 billion, an increase of $535.3 million, or 1%, sequentially as a result of the focus on deposit production and seasonally higher commercial deposits and public funds. Total deposit costs increased 19 basis points from the third quarter 2023 to 2.50%. The bank's total deposit beta cycle to date through the fourth quarter 2023 has been 45%. Non-interest revenue of $51.5 million declined $55.7 million, or 52.0%, sequentially and decreased $51.0 million, or 50%, compared to the fourth quarter 2022. Non-interest revenue was impacted by $78 million in securities losses. Adjusted non-interest revenue of $126.2 million rose $19.9 million, or 19%, sequentially and increased $25.3 million, or 25%, compared to the fourth quarter 2022. The growth was primarily attributable to higher GreenSky income as well as stronger treasury and payment solutions and non-GLOBALT wealth management fees. On a sequential quarter basis, non-interest expense of $352.9 million was flat while adjusted non-interest expense increased 15% to $353.1 million, and compared to the prior year, non-interest expense and adjusted non-interest expense were up 14% and 15%, respectively. All comparisons were significantly impacted by the $51 million FDIC special assessment. Headcount declined 2% sequentially and 5% year over year. Credit quality ratios remain healthy. The non-performing loan and asset ratios were slightly higher at 0.66% and 0.66%, respectively; the net charge-off ratio for the quarter was 0.38%, and total past dues were 0.14% of total loans outstanding. Provision for credit losses of $45.5 million declined $27.1 million sequentially and compares to $72.6 million in the third quarter of 2023. The allowance for credit losses ratio (to loans) of 1.24% was up 2 basis points sequentially and up 9 basis points compared to the prior year. The quarter over quarter increase primarily reflects loan performance during the fourth quarter. The preliminary CET1 ratio rose sequentially to 10.22% as core earnings accretion more than offset the impact of the $51 million FDIC special assessment and $78 million in securities losses during the fourth quarter. Fourth Quarter 2023 Summary Reported Adjusted (dollars in thousands) 4Q23 3Q23 4Q22 4Q23 3Q23 4Q22 Net income available to common shareholders $ 60,645 $ 87,423 $ 197,479 $ 116,901 $ 122,770 $ 197,576 Diluted earnings per share 0.41 0.60 1.35 0.80 0.84 1.35 Total revenue 488,682 550,298 603,785 564,593 550,552 603,359 Total loans 43,404,490 43,679,910 43,716,353 N/A N/A N/A Total deposits 50,739,185 50,203,890 48,871,559 N/A N/A N/A Return on avg assets 0.47 % 0.64 % 1.38 % 0.84 % 0.87 % 1.39 % Return on avg common equity 5.9 8.2 20.9 11.3 11.5 20.9 Return on avg tangible common equity 7.0 9.7 24.2 13.3 13.5 24.2 Net interest margin 3.11 % 3.11 % 3.56 % N/A N/A N/A Efficiency ratio-TE(1)(2) 72.03 64.11 51.08 61.97 55.01 50.58 NCO ratio-QTD 0.38 0.61 0.12 N/A N/A N/A NPA ratio 0.66 0.64 0.33 N/A N/A N/A (1) Taxable equivalent (2) Adjusted tangible efficiency ratio Balance Sheet Loans* (dollars in millions) 4Q23 3Q23 Linked Quarter Change Linked Quarter % Change 4Q22 Year/Year Change Year/Year % Change Commercial & industrial $ 22,598.5 $ 22,781.0 $ (182.5 ) (1 )% $ 22,066.7 $ 531.8 2 % Commercial real estate 12,316.8 12,394.9 (78.1 ) (1 ) 12,650.3 (333.6 ) (3 ) Consumer 8,489.2 8,504.1 (14.9 ) — 8,999.4 (510.1 ) (6 ) Total loans $ 43,404.5 $ 43,679.9 $ (275.4 ) (1 )% $ 43,716.4 $ (311.9 ) (1 )% * Amounts may not total due to rounding Deposits* (dollars in millions) 4Q23 3Q23 Linked Quarter Change Linked Quarter % Change 4Q22 Year/Year Change Year/Year % Change Non-interest-bearing DDA $ 11,801.2 $ 12,395.1 $ (593.9 ) (5)% $ 14,574.5 $ (2,773.3 ) (19 )% Interest-bearing DDA 6,541.0 6,276.1 264.9 4 5,761.4 779.6 14 Money market 10,819.7 10,786.3 33.5 — 12,480.7 (1,661.0 ) (13 ) Savings 1,062.6 1,132.5 (69.9 ) (6 ) 1,396.4 (333.8 ) (24 ) Public funds 7,349.5 6,885.7 463.8 7 6,635.6 714.0 11 Time deposits 7,122.2 6,506.4 615.8 9 2,724.1 4,398.1 161 Brokered deposits 6,043.0 6,221.8 (178.8 ) (3 ) 5,299.0 744.0 14 Total deposits $ 50,739.2 $ 50,203.9 $ 535.3 1 % $ 48,871.6 $ 1,867.6 4 % * Amounts may not total due to rounding Income Statement Summary* (in thousands, except per share data) 4Q23 3Q23 Linked Quarter Change Linked Quarter % Change 4Q22 Year/Year Change Year/Year % Change Net interest income $ 437,214 $ 443,159 $ (5,945 ) (1 )% $ 501,346 $ (64,132 ) (13 )% Non-interest revenue 51,468 107,139 (55,671 ) (52 ) 102,439 (50,971 ) (50 ) Non-interest expense 352,858 353,532 (674 ) — 308,996 43,862 14 Provision for (reversal of) credit losses 45,472 72,572 (27,100 ) (37 ) 34,884 10,588 30 Income before taxes $ 90,352 $ 124,194 $ (33,842 ) (27 )% $ 259,905 $ (169,553 ) (65 )% Income tax expense 20,779 27,729 (6,950 ) (25 ) 54,135 (33,356 ) (62 ) Net income 69,573 96,465 (26,892 ) (28 ) 205,770 (136,197 ) (66 ) Less: Net income (loss) attributable to noncontrolling interest (768 ) (630 ) (138 ) 22 — (768 ) nm Net income attributable to Synovus Financial Corp. 70,341 97,095 (26,754 ) (28 ) 205,770 (135,429 ) (66 ) Less: Preferred stock dividends 9,696 9,672 24 — 8,291 1,405 17 Net income available to common shareholders $ 60,645 $ 87,423 $ (26,778 ) (31 )% $ 197,479 $ (136,834 ) (69 )% Weighted average common shares outstanding, diluted 146,877 146,740 137 — 146,528 349 — Diluted earnings per share $ 0.41 $ 0.60 $ (0.19 ) (32 )% $ 1.35 $ (0.94 ) (70 )% Adjusted diluted earnings per share $ 0.80 $ 0.84 $ (0.04 ) (5 ) $ 1.35 $ (0.55 ) (41 ) % Effective tax rate 23.00 % 22.33 % 20.83 % * Amounts may not total due to rounding Capital Ratios 4Q23 3Q23 4Q22 Common equity Tier 1 capital (CET1) ratio 10.22 % * 10.13 % 9.63 % Tier 1 capital ratio 11.28 * 11.18 10.68 Total risk-based capital ratio 13.07 * 13.12 12.54 Tier 1 leverage ratio 9.49 * 9.38 9.07 Tangible common equity ratio 6.84 5.90 5.84 * Ratios are preliminary Fourth Quarter 2023 Earnings Conference Call Synovus will host an earnings highlights conference call at 8:30 a.m. ET on Jan. 18, 2024. The earnings call will be accompanied by a slide presentation. Shareholders and other interested parties may listen to this conference call via simultaneous internet broadcast. For a link to the webcast, go to investor.synovus.com/events. The replay will be archived for 12 months and will be available 30-45 minutes after the call. Synovus Financial Corp. is a financial services company based in Columbus, Georgia, with approximately $60 billion in assets. Synovus provides commercial and consumer banking and a full suite of specialized products and services, including private banking, treasury management, wealth management, mortgage services, premium finance, asset-based lending, structured lending, capital markets and international banking. Synovus has 246 branches in Georgia, Alabama, South Carolina, Florida and Tennessee. Synovus is a Great Place to Work-Certified Company and is on the web at synovus.com and on X, formerly known as Twitter, Facebook, LinkedIn and Instagram. Forward-Looking Statements This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements through Synovus’ use of words such as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the future or otherwise regarding the outlook for Synovus’ future business and financial performance and/or the performance of the banking industry and economy in general. These forward-looking statements include, among others, our expectations regarding our future operating and financial performance; expectations on our intended strategies, initiatives, and other operational and execution goals; expectations on credit quality and performance; and the assumptions underlying our expectations. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Synovus to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, Synovus’ management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements in this press release. Many of these factors are beyond Synovus’ ability to control or predict. These forward-looking statements are based upon information presently known to Synovus’ management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in Synovus’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2022, under the captions “Cautionary Notice Regarding Forward-Looking Statements” and “Risk Factors” and in Synovus’ quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as otherwise may be required by law. Non-GAAP Financial Measures The measures entitled adjusted net income available to common shareholders; adjusted diluted earnings per share; adjusted non-interest revenue, adjusted non-interest expense; adjusted revenue; adjusted tangible efficiency ratio; adjusted return on average assets; adjusted return on average common equity; return on average tangible common equity; adjusted return on average tangible common equity; and tangible common equity ratio are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are net income available to common shareholders; diluted earnings per share; total non-interest revenue; total non-interest expense; total revenue; efficiency ratio-TE; return on average assets; return on average common equity; and the ratio of total Synovus Financial Corp. shareholders' equity to total assets, respectively. Management believes that these non-GAAP financial measures provide meaningful additional information about Synovus to assist management and investors in evaluating Synovus’ operating results, financial strength, the performance of its business, and the strength of its capital position. However, these non-GAAP financial measures have inherent limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of operating results or capital position as reported under GAAP. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant items and other factors, and since they are not required to be uniformly applied, they may not be comparable to other similarly titled measures at other companies. Adjusted net income available to common shareholders, adjusted diluted earnings per share, adjusted return on average assets, and adjusted return on average common equity are measures used by management to evaluate operating results exclusive of items that are not indicative of ongoing operations and impact period-to-period comparisons. Adjusted non-interest revenue and adjusted revenue are measures used by management to evaluate non-interest revenue and total revenue exclusive of fair value adjustment on non-qualified deferred compensation and other items not indicative of ongoing operations that could impact period-to-period comparisons. Adjusted non-interest expense and the adjusted tangible efficiency ratio are measures utilized by management to measure the success of expense management initiatives focused on reducing recurring controllable operating costs. Return on average tangible common equity and adjusted return on average tangible common equity are measures used by management to compare Synovus’ performance with other financial institutions because it calculates the return available to common shareholders without the impact of intangible assets and their related amortization, thereby allowing management to evaluate the performance of the business consistently. The tangible common equity ratio is used by management to assess the strength of our capital position. The computations of these measures are set forth in the tables below. Reconciliation of Non-GAAP Financial Measures (in thousands, except per share data) 4Q23 3Q23 4Q22 2023 2022 Adjusted net income available to common shareholders and adjusted net income per common share, diluted Net income available to common shareholders $ 60,645 $ 87,423 $ 197,479 $ 507,755 $ 724,739 (Gain) on sale of GLOBALT — (1,929 ) — (1,929 ) — Restructuring charges (reversals) 1,231 17,319 (2,372 ) 17,707 (9,690 ) Valuation adjustment to Visa derivative — 900 2,500 3,927 6,000 (Gain) loss on early extinguishment of debt (4,497 ) (526 ) — (5,400 ) 677 Recovery of NPA — — — (13,126 ) — Loss on other loans held for sale — 30,954 — 50,064 — Investment securities (gains) losses, net 77,748 — — 76,718 — Tax effect of adjustments(1) (18,226 ) (11,371 ) (31 ) (31,312 ) 733 Adjusted net income available to common shareholders $ 116,901 $ 122,770 $ 197,576 $ 604,404 $ 722,459 Weighted average common shares outstanding, diluted 146,877 146,740 146,528 146,734 146,481 Net income per common share, diluted $ 0.41 $ 0.60 $ 1.35 $ 3.46 $ 4.95 Adjusted net income per common share, diluted 0.80 0.84 1.35 4.12 4.93 (1) An assumed marginal tax rate of 24.5% for 4Q23 and 2023 and 24.3% for 3Q23, 4Q22, and 2022 was applied. Reconciliation of Non-GAAP Financial Measures, continued (dollars in thousands) 4Q23 3Q23 4Q22 2023 2022 Adjusted non-interest revenue Total non-interest revenue $ 51,468 $ 107,139 $ 102,439 $ 404,010 $ 409,336 (Gain) on sale of GLOBALT — (1,929 ) — (1,929 ) — Recovery of NPA — — — (13,126 ) — Investment securities (gains) losses, net 77,748 — — 76,718 — Fair value adjustment on non-qualified deferred compensation (3,053 ) 1,035 (1,557 ) (4,987 ) 4,054 Adjusted non-interest revenue $ 126,163 $ 106,245 $ 100,882 $ 460,686 $ 413,390 Adjusted non-interest expense Total non-interest expense $ 352,858 $ 353,532 $ 308,996 $ 1,335,424 $ 1,157,506 (Loss) gain on other loans held for sale — (30,954 ) — (50,064 ) — Restructuring (charges) reversals (1,231 ) (17,319 ) 2,372 (17,707 ) 9,690 Valuation adjustment to Visa derivative — (900 ) (2,500 ) (3,927 ) (6,000 ) Gain (loss) on early extinguishment of debt 4,497 526 — 5,400 (677 ) Fair value adjustment on non-qualified deferred compensation (3,053 ) 1,035 (1,557 ) (4,987 ) 4,054 Adjusted non-interest expense $ 353,071 $ 305,920 $ 307,311 $ 1,264,139 $ 1,164,573 (dollars in thousands) 4Q23 3Q23 4Q22 Adjusted revenue and tangible efficiency ratio Adjusted non-interest expense $ 353,071 $ 305,920 $ 307,311 Amortization of intangibles (3,168 ) (3,042 ) (2,118 ) Adjusted tangible non-interest expense $ 349,903 $ 302,878 $ 305,193 Net interest income $ 437,214 $ 443,159 $ 501,346 Total non-interest revenue 51,468 107,139 102,439 Total revenue 488,682 550,298 603,785 Tax equivalent adjustment 1,216 1,148 1,131 Total TE revenue 489,898 551,446 604,916 (Gain) on sale of GLOBALT — (1,929 ) — Recovery of NPA — — — Investment securities (gains) losses, net 77,748 — — Fair value adjustment on non-qualified deferred compensation (3,053 ) 1,035 (1,557 ) Adjusted revenue $ 564,593 $ 550,552 $ 603,359 Efficiency ratio-TE 72.03 % 64.11 % 51.08 % Adjusted tangible efficiency ratio 61.97 55.01 50.58 Reconciliation of Non-GAAP Financial Measures, continued (in thousands, except per share data) 4Q23 3Q23 4Q22 Adjusted return on average assets (annualized) Net income $ 69,573 $ 96,465 $ 205,770 Loss on other loans held for sale — 30,954 — Restructuring charges (reversals) 1,231 17,319 (2,372 ) (Gain) on sale of GLOBALT — (1,929 ) — Valuation adjustment to Visa derivative — 900 2,500 (Gain) on early extinguishment of debt (4,497 ) (526 ) — Investment securities (gains) losses, net 77,748 — — Tax effect of adjustments(1) (18,226 ) (11,371 ) (31 ) Adjusted net income $ 125,829 $ 131,812 $ 205,867 Net income annualized $ 276,023 $ 382,714 $ 816,370 Adjusted net income annualized $ 499,213 $ 522,950 $ 816,755 Total average assets $ 59,164,065 $ 59,916,679 $ 58,963,417 Return on average assets (annualized) 0.47 % 0.64 % 1.38 % Adjusted return on average assets (annualized) 0.84 0.87 1.39 (1) An assumed marginal tax rate of 24.5% for 4Q23 and 24.3% for both 3Q23 and 4Q22 was applied. Reconciliation of Non-GAAP Financial Measures, continued (dollars in thousands) 4Q23 3Q23 4Q22 Adjusted return on average common equity, return on average tangible common equity, and adjusted return on average tangible common equity (annualized) Net income available to common shareholders $ 60,645 $ 87,423 $ 197,479 Loss on other loans held for sale — 30,954 — Restructuring charges (reversals) 1,231 17,319 (2,372 ) (Gain) on sale of GLOBALT — (1,929 ) — Valuation adjustment to Visa derivative — 900 2,500 (Gain) on early extinguishment of debt (4,497 ) (526 ) — Subtract/add: Investment securities (gains) losses, net 77,748 — — Subtract/add: Tax effect of adjustments(1) (18,226 ) (11,371 ) (31 ) Adjusted net income available to common shareholders $ 116,901 $ 122,770 $ 197,576 Adjusted net income available to common shareholders annualized $ 463,792 $ 487,077 $ 783,861 Amortization of intangibles, tax effected, annualized 9,493 9,131 6,358 Adjusted net income available to common shareholders excluding amortization of intangibles annualized $ 473,285 $ 496,208 $ 790,219 Net income available to common shareholders annualized $ 240,602 $ 346,841 $ 783,476 Amortization of intangibles, tax effected, annualized 9,493 9,131 6,358 Net income available to common shareholders excluding amortization of intangibles annualized $ 250,095 $ 355,972 $ 789,834 Total average Synovus Financial Corp. shareholders' equity less preferred stock $ 4,090,163 $ 4,223,422 $ 3,742,927 Average goodwill (479,858 ) (476,408 ) (452,390 ) Average other intangible assets, net (47,502 ) (59,016 ) (28,174 ) Total average Synovus Financial Corp. tangible shareholders' equity less preferred stock $ 3,562,803 $ 3,687,998 $ 3,262,363 Return on average common equity (annualized) 5.9 % 8.2 % 20.9 % Adjusted return on average common equity (annualized) 11.3 11.5 20.9 Return on average tangible common equity (annualized) 7.0 9.7 24.2 Adjusted return on average tangible common equity (annualized) 13.3 13.5 24.2 (1) An assumed marginal tax rate of 24.5% for 4Q23 and 24.3% for both 3Q23 and 4Q22 was applied. Reconciliation of Non-GAAP Financial Measures, continued December 31, September 30, December 31, (dollars in thousands) 2023 2023 2022 Tangible common equity ratio Total assets $ 59,809,534 $ 59,342,930 $ 59,731,378 Goodwill (480,440 ) (479,851 ) (452,390 ) Other intangible assets, net (45,928 ) (49,096 ) (27,124 ) Tangible assets $ 59,283,166 $ 58,813,983 $ 59,251,864 Total Synovus Financial Corp. shareholders' equity $ 5,119,993 $ 4,536,958 $ 4,475,801 Goodwill (480,440 ) (479,851 ) (452,390 ) Other intangible assets, net (45,928 ) (49,096 ) (27,124 ) Preferred stock, no par value (537,145 ) (537,145 ) (537,145 ) Tangible common equity $ 4,056,480 $ 3,470,866 $ 3,459,142 Total Synovus Financial Corp. shareholders’ equity to total assets ratio 8.56 % 7.65 % 7.49 % Tangible common equity ratio 6.84 5.90 5.84 Synovus INCOME STATEMENT DATA (Unaudited) Years Ended (Dollars in thousands, except per share data) December 31, 2023 2022 % Change Interest income $ 3,050,358 $ 2,075,787 47 % Interest expense 1,233,703 278,887 342 Net interest income 1,816,655 1,796,900 1 Provision for (reversal of) credit losses 189,079 84,553 124 Net interest income after provision for credit losses 1,627,576 1,712,347 (5 ) Non-interest revenue: Service charges on deposit accounts 90,096 93,067 (3 ) Fiduciary and asset management fees 78,077 78,414 — Card fees 72,357 61,833 17 Brokerage revenue 83,431 67,034 24 Mortgage banking income 15,157 17,476 (13 ) Capital markets income 32,181 26,702 21 Income from bank-owned life insurance 31,429 29,720 6 Investment securities gains (losses), net (76,718 ) — nm Recovery of NPA 13,126 — nm Other non-interest revenue 64,874 35,090 85 Total non-interest revenue 404,010 409,336 (1 ) Non-interest expense: Salaries and other personnel expense 728,378 681,710 7 Net occupancy, equipment, and software expense 179,581 174,730 3 Third-party processing and other services 86,649 88,617 (2 ) Professional fees 39,854 37,189 7 FDIC insurance and other regulatory fees 94,737 29,083 226 Restructuring charges (reversals) 17,707 (9,690 ) (283 ) Loss on other loans held for sale 50,064 — nm Other operating expenses 138,454 155,867 (11 ) Total non-interest expense 1,335,424 1,157,506 15 Income before income taxes 696,162 964,177 (28 ) Income tax expense 154,021 206,275 (25 ) Net income 542,141 757,902 (28 ) Less: Net income (loss) attributable to noncontrolling interest (1,564 ) — nm Net income attributable to Synovus Financial Corp. 543,705 757,902 (28 ) Less: Preferred stock dividends 35,950 33,163 8 Net income available to common shareholders $ 507,755 $ 724,739 (30 )% Net income per common share, basic 3.48 4.99 (30 )% Net income per common share, diluted 3.46 4.95 (30 ) Cash dividends declared per common share 1.52 1.36 12 Return on average assets 0.90 % 1.32 % (42) bps Return on average common equity 12.17 17.41 (524 ) Weighted average common shares outstanding, basic 146,115 145,364 1 % Weighted average common shares outstanding, diluted 146,734 146,481 — nm - not meaningful bps - basis points Synovus INCOME STATEMENT DATA (Unaudited) (Dollars in thousands, except per share data) 2023 2022 Fourth Quarter Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter 23 vs '22 % Change Interest income $ 788,297 786,039 759,143 716,879 654,654 20 % Interest expense 351,083 342,880 303,612 236,128 153,308 129 Net interest income 437,214 443,159 455,531 480,751 501,346 (13 ) Provision for (reversal of) credit losses 45,472 72,572 38,881 32,154 34,884 30 Net interest income after provision for credit losses 391,742 370,587 416,650 448,597 466,462 (16 ) Non-interest revenue: Service charges on deposit accounts 22,260 21,385 23,477 22,974 23,639 (6 ) Fiduciary and asset management fees 18,149 20,205 20,027 19,696 18,836 (4 ) Card fees 20,872 18,602 17,059 15,824 15,887 31 Brokerage revenue 19,727 20,237 20,908 22,558 19,996 (1 ) Mortgage banking income 3,019 3,671 4,609 3,858 2,554 18 Capital markets income 5,104 6,377 6,975 13,725 6,998 (27 ) Income from bank-owned life insurance 10,324 6,965 6,878 7,262 7,206 43 Investment securities gains (losses), net (77,748 ) — — 1,030 — nm Recovery of NPA — — — 13,126 — nm Other non-interest revenue 29,761 9,697 12,343 13,073 7,323 306 Total non-interest revenue 51,468 107,139 112,276 133,126 102,439 (50 ) Non-interest expense: Salaries and other personnel expense 176,712 179,741 183,001 188,924 182,629 (3 ) Net occupancy, equipment, and software expense 48,146 45,790 42,785 42,860 45,192 7 Third-party processing and other services 21,717 21,439 21,659 21,833 23,130 (6 ) Professional fees 11,147 10,147 9,597 8,963 11,096 — FDIC insurance and other regulatory fees 61,470 11,837 11,162 10,268 8,232 647 Restructuring charges (reversals) 1,231 17,319 (110 ) (733 ) (2,372 ) (152 ) Loss on other loans held for sale — 30,954 2,360 16,750 — nm Other operating expenses 32,435 36,305 36,727 32,987 41,089 (21 ) Total non-interest expense 352,858 353,532 307,181 321,852 308,996 14 Income before income taxes 90,352 124,194 221,745 259,871 259,905 (65 ) Income tax expense 20,779 27,729 47,801 57,712 54,135 (62 ) Net income 69,573 96,465 173,944 202,159 205,770 (66 ) Less: Net income (loss) attributable to noncontrolling (768 ) (630 ) (166 ) — — nm Net income attributable to Synovus Financial Corp. 70,341 97,095 174,110 202,159 205,770 (66 ) Less: Preferred stock dividends 9,696 9,672 8,291 8,291 8,291 17 Net income available to common shareholders $ 60,645 87,423 165,819 193,868 197,479 (69 ) Net income per common share, basic $ 0.41 0.60 1.13 1.33 1.36 (69 )% Net income per common share, diluted 0.41 0.60 1.13 1.32 1.35 (69 ) Cash dividends declared per common share 0.38 0.38 0.38 0.38 0.34 12 Return on average assets * 0.47 % 0.64 1.15 1.36 1.38 (91) bps Return on average common equity * 5.88 8.21 15.45 19.23 20.93 nm Weighted average common shares outstanding, basic 146,372 146,170 146,113 145,799 145,467 1 % Weighted average common shares outstanding, diluted 146,877 146,740 146,550 146,727 146,528 — nm - not meaningful bps - basis points * - ratios are annualized Synovus BALANCE SHEET DATA December 31, 2023 September 30, 2023 December 31, 2022 (Unaudited) (In thousands, except share data) ASSETS Cash and due from banks $ 601,188 $ 604,631 $ 624,097 Interest-bearing funds with Federal Reserve Bank 1,741,059 1,431,356 1,280,684 Interest earning deposits with banks 71,856 65,468 34,632 Federal funds sold and securities purchased under resale agreements 37,323 36,176 38,367 Cash and cash equivalents 2,451,426 2,137,631 1,977,780 Investment securities available for sale, at fair value 9,788,662 9,237,191 9,678,103 Loans held for sale ($47,338, $48,994 and $51,136 measured at fair value, respectively) 52,768 66,558 391,502 Loans, net of deferred fees and costs 43,404,490 43,679,910 43,716,353 Allowance for loan losses (479,385 ) (477,532 ) (443,424 ) Loans, net 42,925,105 43,202,378 43,272,929 Cash surrender value of bank-owned life insurance 1,112,030 1,107,092 1,089,280 Premises, equipment, and software, net 365,851 364,054 370,632 Goodwill 480,440 479,851 452,390 Other intangible assets, net 45,928 49,096 27,124 Other assets 2,587,324 2,699,079 2,471,638 Total assets $ 59,809,534 $ 59,342,930 $ 59,731,378 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits: Non-interest-bearing deposits $ 12,507,616 $ 12,976,574 $ 15,639,899 Interest-bearing deposits 38,231,569 37,227,316 33,231,660 Total deposits 50,739,185 50,203,890 48,871,559 Federal funds purchased and securities sold under repurchase agreements 189,074 98,270 146,588 Other short-term borrowings 3,496 2,362 603,384 Long-term debt 1,932,534 2,704,701 4,109,597 Other liabilities 1,801,097 1,772,139 1,524,449 Total liabilities 54,665,386 54,781,362 55,255,577 Shareholders' equity: Preferred stock – no par value. Authorized 100,000,000 shares; issued 22,000,000 537,145 537,145 537,145 Common stock – $1.00 par value. Authorized 342,857,143 shares; issued 171,360,188, 170,859,506, and 170,141,492 respectively; outstanding 146,705,330, 146,204,648, and 145,486,634 respectively 171,360 170,860 170,141 Additional paid-in capital 3,955,819 3,940,507 3,920,346 Treasury stock, at cost – 24,654,858 shares (944,484 ) (944,484 ) (944,484 ) Accumulated other comprehensive income (loss), net (1,117,073 ) (1,679,404 ) (1,442,117 ) Retained earnings 2,517,226 2,512,334 2,234,770 Total Synovus Financial Corp. shareholders' equity 5,119,993 4,536,958 4,475,801 Noncontrolling interest in subsidiary 24,155 24,610 — Total equity 5,144,148 4,561,568 4,475,801 Total liabilities and shareholders' equity $ 59,809,534 $ 59,342,930 $ 59,731,378 Synovus AVERAGE BALANCES, INTEREST, AND YIELDS/RATES (Unaudited) 2023 2022 (dollars in thousands) Average Balance Interest Yield/ Rate Average Balance Interest Yield/ Rate Assets Interest earning assets: Commercial loans (1) (2) (3) $ 35,188,678 $ 2,263,117 6.43 % $ 32,402,218 $ 1,448,463 4.47 % Consumer loans (1) (2) 8,557,650 426,266 4.98 8,823,424 361,524 4.10 Less: Allowance for loan losses (463,493 ) (421,506 ) — — Loans, net 43,282,835 2,689,383 6.21 40,804,136 1,809,987 4.44 Investment securities available for sale 11,212,956 248,294 2.21 11,208,886 209,951 1.87 Trading account assets 15,486 886 5.72 13,374 261 1.95 Other earning assets(4) 1,414,586 71,349 4.98 1,220,653 18,756 1.52 FHLB and Federal Reserve Bank stock 254,420 14,975 5.89 214,289 6,722 3.14 Mortgage loans held for sale 46,035 2,993 6.50 75,325 3,353 4.45 Other loans held for sale 469,689 27,099 5.69 682,961 30,684 4.43 Total interest earning assets 56,696,007 $ 3,054,979 5.39 % 54,219,624 $ 2,079,714 3.84 % Cash and due from banks 575,370 574,250 Premises and equipment 367,159 385,622 Other real estate — 6,356 Cash surrender value of bank-owned life insurance 1,099,641 1,078,653 Other assets(5) 1,183,691 1,345,568 Total assets $ 59,921,868 $ 57,610,073 Liabilities and Shareholders' Equity Interest-bearing liabilities: Interest-bearing demand deposits $ 9,884,039 $ 176,595 1.79 % $ 9,027,636 $ 25,912 0.29 % Money market accounts 13,511,442 356,562 2.64 15,385,765 79,567 0.52 Savings deposits 1,229,975 1,046 0.09 1,481,372 399 0.03 Time deposits 5,473,405 196,481 3.59 2,667,101 13,902 0.52 Brokered deposits 6,104,461 296,071 4.85 3,644,957 67,452 1.85 Federal funds purchased and securities sold under repurchase agreements 97,114 1,667 1.69 205,753 1,308 0.63 Other short-term borrowings 528,194 24,611 4.60 466,254 10,945 2.32 Long-term debt 3,027,746 180,670 5.92 1,999,595 79,402 3.95 Total interest-bearing liabilities 39,856,376 $ 1,233,703 3.10 % 34,878,433 $ 278,887 0.80 % Non-interest-bearing demand deposits 13,662,660 16,731,967 Other liabilities 1,671,489 1,298,972 Shareholders' equity 4,731,343 4,700,701 Total liabilities and shareholders' equity $ 59,921,868 $ 57,610,073 Net interest income, taxable equivalent net interest margin (6) $ 1,821,276 3.21 % �� $ 1,800,827 3.32 % Less: taxable-equivalent adjustment 4,621 3,927 Net interest income $ 1,816,655 $ 1,796,900 (1) Average loans are shown net of deferred fees and costs. NPLs are included. (2) Interest income includes net loan fees as follows: 2023 — $47.7 million and 2022 — $57.3 million. (3) Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans and investment securities to a taxable-equivalent basis. (4) Includes interest-bearing funds with Federal Reserve Bank, interest earning deposits with banks, and federal funds sold and securities purchased under resale agreements. (5) Includes average net unrealized gains/(losses) on investment securities available for sale of $(1.62) billion and $(985.6) million for the years ended December 31, 2023 and 2022, respectively. (6) The net interest margin is calculated by dividing net interest income-taxable equivalent by average total interest earning assets. Synovus AVERAGE BALANCES, INTEREST, AND YIELDS/RATES (Unaudited) Fourth Quarter 2023 Third Quarter 2023 Fourth Quarter 2022 (dollars in thousands) Average Balance Interest Yield/ Rate Average Balance Interest Yield/ Rate Average Balance Interest Yield/ Rate Assets Interest earning assets: Commercial loans (1) (2) (3) $ 35,106,156 $ 590,588 6.67 % $ 34,990,459 $ 579,177 6.57 % $ 34,103,384 $ 474,439 5.52 % Consumer loans (1) (2) 8,491,244 109,509 5.14 8,509,757 108,065 5.06 9,041,520 101,905 4.50 Less: Allowance for loan losses (480,332 ) (461,385 ) (427,525 ) Loans, net 43,117,068 700,097 6.45 43,038,831 687,242 6.34 42,717,379 576,344 5.36 Investment securities available for sale 11,164,487 65,176 2.33 11,194,291 61,642 2.20 11,296,449 58,840 2.08 Trading account assets 13,067 215 6.59 16,186 237 5.86 15,552 68 1.75 Other earning assets(4) 1,463,176 19,689 5.26 1,237,445 16,369 5.17 1,148,099 10,490 3.58 FHLB and Federal Reserve Bank stock 187,015 3,536 7.56 244,906 3,783 6.18 270,822 2,805 4.14 Mortgage loans held for sale 39,024 696 7.14 53,904 879 6.52 46,240 688 5.95 Other loans held for sale 8,044 104 5.06 881,067 17,035 7.57 514,811 6,550 4.98 Total interest earning assets 55,991,881 $ 789,513 5.59 % 56,666,630 $ 787,187 5.51 % 56,009,352 $ 655,785 4.65 % Cash and due from banks 522,986 509,511 651,189 Premises and equipment 366,647 365,568 375,352 Other real estate — — — Cash surrender value of bank-owned life insurance 1,108,766 1,102,626 1,085,394 Other assets(5) 1,173,785 1,272,344 842,130 Total assets $ 59,164,065 $ 59,916,679 $ 58,963,417 Liabilities and Shareholders' Equity Interest-bearing liabilities: Interest-bearing demand deposits $ 10,422,286 $ 58,588 2.23 % $ 10,114,171 $ 52,983 2.08 % $ 8,627,386 $ 14,160 0.65 % Money market accounts 13,053,781 103,211 3.14 13,147,465 95,339 2.88 14,771,308 46,671 1.25 Savings deposits 1,098,914 275 0.10 1,178,322 280 0.09 1,450,153 176 0.05 Time deposits 7,198,229 75,462 4.16 6,180,584 59,972 3.85 2,567,979 7,648 1.18 Brokered deposits 6,069,055 81,444 5.32 6,442,690 83,486 5.14 4,986,542 39,500 3.14 Federal funds purchased and securities sold under repurchase agreements 93,854 350 1.46 73,344 296 1.58 141,707 437 1.21 Other short-term borrowings 2,672 51 7.50 1,722 — — 660,295 6,383 3.78 Long-term debt 1,922,661 31,702 6.55 3,230,374 50,524 6.18 3,446,306 38,333 4.39 Total interest-bearing liabilities 39,861,452 $ 351,083 3.49 % 40,368,672 $ 342,880 3.37 % 36,651,676 $ 153,308 1.66 % Non-interest-bearing demand deposits 12,744,275 13,049,343 16,569,275 Other liabilities 1,906,686 1,713,131 1,462,394 Shareholders' equity 4,651,652 4,785,533 4,280,072 Total liabilities and shareholders' equity $ 59,164,065 $ 59,916,679 $ 58,963,417 Net interest income, taxable equivalent net interest margin (6) $ 438,430 3.11 % $ 444,307 3.11 % $ 502,477 3.56 % Less: taxable-equivalent adjustment 1,216 1,148 1,131 Net interest income $ 437,214 $ 443,159 $ 501,346 (1) Average loans are shown net of deferred fees and costs. NPLs are included. (2) Interest income includes net loan fees as follows: Fourth Quarter 2023 — $13.1 million, Third Quarter 2023 — $11.8 million, and Fourth Quarter 2022 —$11.9 million. (3) Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans and investment securities to a taxable-equivalent basis. (4) Includes interest-bearing funds with Federal Reserve Bank, interest earning deposits with banks, and federal funds sold and securities purchased under resale agreements (5) Includes average net unrealized gains/(losses) on investment securities available for sale of $(1.89) billion, $(1.60) billion, and $(1.69) billion for the Fourth Quarter 2023, Third Quarter 2023, and Fourth Quarter 2022, respectively. (6) The net interest margin is calculated by dividing annualized net interest income-taxable equivalent by average total interest earning assets. Synovus LOANS OUTSTANDING BY TYPE (Unaudited) (Dollars in thousands) Total Loans Total Loans Linked Quarter Total Loans Year/Year Loan Type December 31, 2023 September 30, 2023 % Change December 31, 2022 % Change Commercial, Financial, and Agricultural $ 14,459,345 $ 14,498,966 — % $ 13,874,416 4 % Owner-Occupied 8,139,148 8,281,988 (2 ) 8,192,240 (1 ) Total Commercial & Industrial 22,598,493 22,780,954 (1 ) 22,066,656 2 Multi-Family 4,098,188 3,930,617 4 3,134,571 31 Hotels 1,803,102 1,790,094 1 1,708,194 6 Office Buildings 1,891,587 1,911,095 (1 ) 3,011,911 (37 ) Shopping Centers 1,319,049 1,327,770 (1 ) 1,403,928 (6 ) Warehouses 854,475 985,723 (13 ) 1,035,152 (17 ) Other Investment Property 1,396,903 1,432,456 (2 ) 1,350,291 3 Total Investment Properties 11,363,304 11,377,755 — 11,644,047 (2 ) 1-4 Family Construction 194,481 224,091 (13 ) 229,263 (15 ) 1-4 Family Investment Mortgage 404,021 396,813 2 387,670 4 Total 1-4 Family Properties 598,502 620,904 (4 ) 616,933 (3 ) Commercial Development 73,022 64,212 14 79,889 (9 ) Residential Development 79,961 92,209 (13 ) 108,661 (26 ) Land Acquisition 201,969 239,773 (16 ) 200,783 1 Land and Development 354,952 396,194 (10 ) 389,333 (9 ) Total Commercial Real Estate 12,316,758 12,394,853 (1 ) 12,650,313 (3 ) Consumer Mortgages 5,411,723 5,391,282 — 5,214,443 4 Home Equity Lines 1,807,399 1,784,356 1 1,757,038 3 Credit Cards 194,141 191,046 2 203,612 (5 ) Other Consumer Loans 1,075,976 1,137,419 (5 ) 1,824,291 (41 ) Total Consumer 8,489,239 8,504,103 — 8,999,384 (6 ) Total $ 43,404,490 $ 43,679,910 (1 ) $ 43,716,353 (1 ) NON-PERFORMING LOANS COMPOSITION (Unaudited) (Dollars in thousands) Total Non-performing Loans Total Non-performing Loans Linked Quarter Total Non-performing Loans Year/Year Loan Type December 31, 2023 September 30, 2023 % Change December 31, 2022 % Change Commercial, Financial, and Agricultural $ 89,870 $ 97,468 (8 ) $ 59,307 52 % Owner-Occupied 91,370 84,505 8 10,104 nm Total Commercial & Industrial 181,240 181,973 — 69,411 161 Multi-Family 1,681 1,702 (1 ) 1,857 (9 ) Office Buildings 35,338 27,810 27 309 nm Shopping Centers 641 653 (2 ) 735 (13 ) Warehouses 196 207 (5 ) 223 (12 ) Other Investment Property 1,914 572 235 349 448 Total Investment Properties 39,770 30,944 29 3,473 nm 1-4 Family Construction — — nm 55 (100 ) 1-4 Family Investment Mortgage 3,056 3,386 (10 ) 3,067 — Total 1-4 Family Properties 3,056 3,386 (10 ) 3,122 (2 ) Commercial Development — — nm — nm Residential Development 267 267 — 267 — Land Acquisition 537 538 — 891 (40 ) Land and Development 804 805 — 1,158 (31 ) Total Commercial Real Estate 43,630 35,135 24 7,753 463 Consumer Mortgages 46,108 43,863 5 36,847 25 Home Equity Lines 10,473 11,620 (10 ) 6,830 53 Other Consumer Loans 6,726 7,941 (15 ) 7,220 (7 ) Total Consumer 63,307 63,424 — 50,897 24 Total $ 288,177 $ 280,532 3 % $ 128,061 125 % Synovus CREDIT QUALITY DATA (Unaudited) (Dollars in thousands) 2023 2022 Fourth Quarter Fourth Third Second First Fourth 23 vs '22 Quarter Quarter Quarter Quarter Quarter % Change Non-performing Loans (NPL) $ 288,177 280,532 261,506 182,460 128,061 125 % Other Real Estate and Other Assets — — — — 15,320 (100 ) Non-performing Assets (NPAs) 288,177 280,532 261,506 182,460 143,381 101 Allowance for Loan Losses (ALL) 479,385 477,532 471,238 457,010 443,424 8 Reserve for Unfunded Commitments 57,230 55,185 55,729 57,473 57,455 — Allowance for Credit Losses (ACL) 536,615 532,717 526,967 514,483 500,879 7 Net Charge-Offs - Quarter 41,574 66,822 26,396 18,550 13,300 Net Charge-Offs - YTD 153,342 111,768 44,946 18,550 53,156 Net Charge-Offs / Average Loans - Quarter (1) 0.38 % 0.61 0.24 0.17 0.12 Net Charge-Offs / Average Loans - YTD (1) 0.35 0.34 0.20 0.17 0.13 NPLs / Loans 0.66 0.64 0.59 0.41 0.29 NPAs / Loans, ORE and specific other assets 0.66 0.64 0.59 0.41 0.33 ACL/Loans 1.24 1.22 1.19 1.17 1.15 ALL/Loans 1.10 1.09 1.06 1.04 1.01 ACL/NPLs 186.21 189.90 201.51 281.97 391.13 ALL/NPLs 166.35 170.22 180.20 250.47 346.26 Past Due Loans over 90 days and Still Accruing $ 5,053 3,792 3,643 3,529 3,373 50 As a Percentage of Loans Outstanding 0.01 % 0.01 0.01 0.01 0.01 Total Past Due Loans and Still Accruing $ 59,099 54,974 84,946 55,053 65,568 (10 ) As a Percentage of Loans Outstanding 0.14 % 0.13 0.19 0.12 0.15 (1) Ratio is annualized. SELECTED CAPITAL INFORMATION (1) (Unaudited) (Dollars in thousands) December 31, 2023 September 30, 2023 December 31, 2022 Common Equity Tier 1 Capital Ratio 10.22 % 10.13 9.63 Tier 1 Capital Ratio 11.28 11.18 10.68 Total Risk-Based Capital Ratio 13.07 13.12 12.54 Tier 1 Leverage Ratio 9.49 9.38 9.07 Total Synovus Financial Corp. shareholders’ equity as a Percentage of Total Assets 8.56 7.65 7.49 Tangible Common Equity Ratio(2)(4) 6.84 5.90 5.84 Book Value Per Common Share(3) $ 31.24 27.36 27.07 Tangible Book Value Per Common Share(2) 27.65 23.74 23.78 (1) Current quarter regulatory capital information is preliminary. (2) Excludes the carrying value of goodwill and other intangible assets from common equity and total assets. (3) Book Value Per Common Share consists of Total Synovus Financial Corp. shareholders' equity less Preferred Stock divided by total common shares outstanding. (4) See "Non-GAAP Financial Measures" for applicable reconciliation. View source version on businesswire.com: https://www.businesswire.com/news/home/20240117039916/en/Contacts Media Contact Audria Belton Media Relations media@synovus.com Investor Contact Jennifer H. Demba, CFA Investor Relations investorrelations@synovus.com
Diluted earnings per share of $0.41 vs. $1.35 in 4Q22 Adjusted diluted earnings per share of $0.80 vs. $1.35 in 4Q22 $51 million FDIC special assessment reduced 4Q23 reported and adjusted EPS by $0.26
Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter and year ended Dec. 31, 2023. “Synovus' 2023 financial performance is a testament to our resilience and the strength of our business model,” said Synovus Chairman, CEO and President Kevin Blair. “Amid a challenging economic landscape in 2023, we broadened client relationships, further diversified our business mix, streamlined expenses and took strategic actions to optimize the balance sheet. Our strong banking footprint and ongoing investments in talent, capabilities, functionalities and new revenue sources fuel the bank’s path to solid growth. We persist in bolstering our core deposit generation, enriching lending diversification, enhancing expense efficiency and delivering world-class client service. As we execute our plan, we're confident momentum will build throughout 2024 and beyond for Synovus.” 2023 Highlights Net income available to common shareholders for 2023 was $507.8 million, or $3.46 per diluted share, compared to $724.7 million, or $4.95 per diluted share in 2022. Adjusted EPS for 2023 was $4.12 per diluted share compared to $4.93 per diluted share in 2022. The $51 million FDIC special assessment incurred during the fourth quarter 2023 reduced reported and adjusted EPS by $0.26. Pre-provision net revenue was $885.2 million in 2023 compared to $1.05 billion in 2022. Net interest income was $1.82 billion in 2023, up from $1.80 billion in the prior year, largely attributable to average loan growth and higher earning asset yields, which combined to more than offset rising funding costs. During 2023, Synovus sold $422 million in third-party consumer loans and $1.2 billion in medical office building loans with the proceeds used to pay down wholesale borrowings. Period-end loans declined $311.9 million, or 1%, in 2023 as commercial and industrial growth was more than offset by declines in commercial real estate and consumer loans. Period-end deposits increased $1.87 billion, or 4%, primarily driven by growth in time deposits and interest-bearing demand deposits, partially offset by a decline in non-interest-bearing deposits. Brokered deposits increased $744.0 million, or 14%, in 2023. During the fourth quarter 2023, Synovus repositioned its securities portfolio by selling $1.3 billion of bonds, which resulted in securities losses of $78 million. The proceeds have been reinvested in other high-quality liquid assets with better yields, which should augment 2024 net interest income by an estimated $28 million. Non-interest revenue was $404.0 million, down 1% from 2022. Adjusted non-interest revenue of $460.7 million grew 11% in 2023, primarily attributable to fee income related to treasury and payment solutions, capital markets and wealth management, as well as fees from banking as a service. Non-interest expense was $1.34 billion, up 15%, and adjusted non-interest expense increased 9% year over year in 2023 to $1.26 billion, but was significantly impacted by the $51 million FDIC special assessment. Credit quality remains healthy. Net charge-offs were 0.35% of average loans or 0.28%, excluding the loan sales in the third quarter, compared to 0.13% in 2022. The provision for credit losses was $189.1 million in 2023 compared to a provision of $84.6 million for the prior year. The allowance for credit losses ended the year at 1.24% compared to 1.15% at the end of 2022. The preliminary year-end CET1 ratio increased 59 basis points year over year to 10.22%, which is within our target operating range of 10.00% to 10.50%. Fourth Quarter 2023 Highlights Net income available to common shareholders was $60.6 million, or $0.41 per diluted share, down $0.19 sequentially and down $0.94 compared to the fourth quarter 2022. The $51 million FDIC special assessment impacted fourth quarter 2023 reported and adjusted EPS by $0.26. Pre-provision net revenue of $135.8 million declined $60.9 million, or 31%, sequentially and was down $159.0 million, or 54%, compared to the fourth quarter 2022. Net interest income declined $5.9 million, or 1%, compared to the prior quarter and was down $64.1 million, or 13%, compared to the fourth quarter 2022, primarily attributable to a decline in average earnings assets and higher funding costs. Net interest margin was 3.11%, which was stable from the third quarter supported by rising asset yields, lower than expected core interest-bearing deposit cost and a decline in borrowings. Period-end loans declined $275.4 million, or 1%, from the third quarter as core commercial lending growth was more than offset by softer overall loan production, higher loan paydowns and strategic declines in certain loan categories such as non-relationship syndicated lending and third-party consumer lending. Core deposits increased $714.1 million, or 2%, sequentially. Total deposits ended the quarter at $50.74 billion, an increase of $535.3 million, or 1%, sequentially as a result of the focus on deposit production and seasonally higher commercial deposits and public funds. Total deposit costs increased 19 basis points from the third quarter 2023 to 2.50%. The bank's total deposit beta cycle to date through the fourth quarter 2023 has been 45%. Non-interest revenue of $51.5 million declined $55.7 million, or 52.0%, sequentially and decreased $51.0 million, or 50%, compared to the fourth quarter 2022. Non-interest revenue was impacted by $78 million in securities losses. Adjusted non-interest revenue of $126.2 million rose $19.9 million, or 19%, sequentially and increased $25.3 million, or 25%, compared to the fourth quarter 2022. The growth was primarily attributable to higher GreenSky income as well as stronger treasury and payment solutions and non-GLOBALT wealth management fees. On a sequential quarter basis, non-interest expense of $352.9 million was flat while adjusted non-interest expense increased 15% to $353.1 million, and compared to the prior year, non-interest expense and adjusted non-interest expense were up 14% and 15%, respectively. All comparisons were significantly impacted by the $51 million FDIC special assessment. Headcount declined 2% sequentially and 5% year over year. Credit quality ratios remain healthy. The non-performing loan and asset ratios were slightly higher at 0.66% and 0.66%, respectively; the net charge-off ratio for the quarter was 0.38%, and total past dues were 0.14% of total loans outstanding. Provision for credit losses of $45.5 million declined $27.1 million sequentially and compares to $72.6 million in the third quarter of 2023. The allowance for credit losses ratio (to loans) of 1.24% was up 2 basis points sequentially and up 9 basis points compared to the prior year. The quarter over quarter increase primarily reflects loan performance during the fourth quarter. The preliminary CET1 ratio rose sequentially to 10.22% as core earnings accretion more than offset the impact of the $51 million FDIC special assessment and $78 million in securities losses during the fourth quarter. Fourth Quarter 2023 Summary Reported Adjusted (dollars in thousands) 4Q23 3Q23 4Q22 4Q23 3Q23 4Q22 Net income available to common shareholders $ 60,645 $ 87,423 $ 197,479 $ 116,901 $ 122,770 $ 197,576 Diluted earnings per share 0.41 0.60 1.35 0.80 0.84 1.35 Total revenue 488,682 550,298 603,785 564,593 550,552 603,359 Total loans 43,404,490 43,679,910 43,716,353 N/A N/A N/A Total deposits 50,739,185 50,203,890 48,871,559 N/A N/A N/A Return on avg assets 0.47 % 0.64 % 1.38 % 0.84 % 0.87 % 1.39 % Return on avg common equity 5.9 8.2 20.9 11.3 11.5 20.9 Return on avg tangible common equity 7.0 9.7 24.2 13.3 13.5 24.2 Net interest margin 3.11 % 3.11 % 3.56 % N/A N/A N/A Efficiency ratio-TE(1)(2) 72.03 64.11 51.08 61.97 55.01 50.58 NCO ratio-QTD 0.38 0.61 0.12 N/A N/A N/A NPA ratio 0.66 0.64 0.33 N/A N/A N/A (1) Taxable equivalent (2) Adjusted tangible efficiency ratio Balance Sheet Loans* (dollars in millions) 4Q23 3Q23 Linked Quarter Change Linked Quarter % Change 4Q22 Year/Year Change Year/Year % Change Commercial & industrial $ 22,598.5 $ 22,781.0 $ (182.5 ) (1 )% $ 22,066.7 $ 531.8 2 % Commercial real estate 12,316.8 12,394.9 (78.1 ) (1 ) 12,650.3 (333.6 ) (3 ) Consumer 8,489.2 8,504.1 (14.9 ) — 8,999.4 (510.1 ) (6 ) Total loans $ 43,404.5 $ 43,679.9 $ (275.4 ) (1 )% $ 43,716.4 $ (311.9 ) (1 )% * Amounts may not total due to rounding Deposits* (dollars in millions) 4Q23 3Q23 Linked Quarter Change Linked Quarter % Change 4Q22 Year/Year Change Year/Year % Change Non-interest-bearing DDA $ 11,801.2 $ 12,395.1 $ (593.9 ) (5)% $ 14,574.5 $ (2,773.3 ) (19 )% Interest-bearing DDA 6,541.0 6,276.1 264.9 4 5,761.4 779.6 14 Money market 10,819.7 10,786.3 33.5 — 12,480.7 (1,661.0 ) (13 ) Savings 1,062.6 1,132.5 (69.9 ) (6 ) 1,396.4 (333.8 ) (24 ) Public funds 7,349.5 6,885.7 463.8 7 6,635.6 714.0 11 Time deposits 7,122.2 6,506.4 615.8 9 2,724.1 4,398.1 161 Brokered deposits 6,043.0 6,221.8 (178.8 ) (3 ) 5,299.0 744.0 14 Total deposits $ 50,739.2 $ 50,203.9 $ 535.3 1 % $ 48,871.6 $ 1,867.6 4 % * Amounts may not total due to rounding Income Statement Summary* (in thousands, except per share data) 4Q23 3Q23 Linked Quarter Change Linked Quarter % Change 4Q22 Year/Year Change Year/Year % Change Net interest income $ 437,214 $ 443,159 $ (5,945 ) (1 )% $ 501,346 $ (64,132 ) (13 )% Non-interest revenue 51,468 107,139 (55,671 ) (52 ) 102,439 (50,971 ) (50 ) Non-interest expense 352,858 353,532 (674 ) — 308,996 43,862 14 Provision for (reversal of) credit losses 45,472 72,572 (27,100 ) (37 ) 34,884 10,588 30 Income before taxes $ 90,352 $ 124,194 $ (33,842 ) (27 )% $ 259,905 $ (169,553 ) (65 )% Income tax expense 20,779 27,729 (6,950 ) (25 ) 54,135 (33,356 ) (62 ) Net income 69,573 96,465 (26,892 ) (28 ) 205,770 (136,197 ) (66 ) Less: Net income (loss) attributable to noncontrolling interest (768 ) (630 ) (138 ) 22 — (768 ) nm Net income attributable to Synovus Financial Corp. 70,341 97,095 (26,754 ) (28 ) 205,770 (135,429 ) (66 ) Less: Preferred stock dividends 9,696 9,672 24 — 8,291 1,405 17 Net income available to common shareholders $ 60,645 $ 87,423 $ (26,778 ) (31 )% $ 197,479 $ (136,834 ) (69 )% Weighted average common shares outstanding, diluted 146,877 146,740 137 — 146,528 349 — Diluted earnings per share $ 0.41 $ 0.60 $ (0.19 ) (32 )% $ 1.35 $ (0.94 ) (70 )% Adjusted diluted earnings per share $ 0.80 $ 0.84 $ (0.04 ) (5 ) $ 1.35 $ (0.55 ) (41 ) % Effective tax rate 23.00 % 22.33 % 20.83 % * Amounts may not total due to rounding Capital Ratios 4Q23 3Q23 4Q22 Common equity Tier 1 capital (CET1) ratio 10.22 % * 10.13 % 9.63 % Tier 1 capital ratio 11.28 * 11.18 10.68 Total risk-based capital ratio 13.07 * 13.12 12.54 Tier 1 leverage ratio 9.49 * 9.38 9.07 Tangible common equity ratio 6.84 5.90 5.84 * Ratios are preliminary Fourth Quarter 2023 Earnings Conference Call Synovus will host an earnings highlights conference call at 8:30 a.m. ET on Jan. 18, 2024. The earnings call will be accompanied by a slide presentation. Shareholders and other interested parties may listen to this conference call via simultaneous internet broadcast. For a link to the webcast, go to investor.synovus.com/events. The replay will be archived for 12 months and will be available 30-45 minutes after the call. Synovus Financial Corp. is a financial services company based in Columbus, Georgia, with approximately $60 billion in assets. Synovus provides commercial and consumer banking and a full suite of specialized products and services, including private banking, treasury management, wealth management, mortgage services, premium finance, asset-based lending, structured lending, capital markets and international banking. Synovus has 246 branches in Georgia, Alabama, South Carolina, Florida and Tennessee. Synovus is a Great Place to Work-Certified Company and is on the web at synovus.com and on X, formerly known as Twitter, Facebook, LinkedIn and Instagram. Forward-Looking Statements This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements through Synovus’ use of words such as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the future or otherwise regarding the outlook for Synovus’ future business and financial performance and/or the performance of the banking industry and economy in general. These forward-looking statements include, among others, our expectations regarding our future operating and financial performance; expectations on our intended strategies, initiatives, and other operational and execution goals; expectations on credit quality and performance; and the assumptions underlying our expectations. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Synovus to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, Synovus’ management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements in this press release. Many of these factors are beyond Synovus’ ability to control or predict. These forward-looking statements are based upon information presently known to Synovus’ management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in Synovus’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2022, under the captions “Cautionary Notice Regarding Forward-Looking Statements” and “Risk Factors” and in Synovus’ quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as otherwise may be required by law. Non-GAAP Financial Measures The measures entitled adjusted net income available to common shareholders; adjusted diluted earnings per share; adjusted non-interest revenue, adjusted non-interest expense; adjusted revenue; adjusted tangible efficiency ratio; adjusted return on average assets; adjusted return on average common equity; return on average tangible common equity; adjusted return on average tangible common equity; and tangible common equity ratio are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are net income available to common shareholders; diluted earnings per share; total non-interest revenue; total non-interest expense; total revenue; efficiency ratio-TE; return on average assets; return on average common equity; and the ratio of total Synovus Financial Corp. shareholders' equity to total assets, respectively. Management believes that these non-GAAP financial measures provide meaningful additional information about Synovus to assist management and investors in evaluating Synovus’ operating results, financial strength, the performance of its business, and the strength of its capital position. However, these non-GAAP financial measures have inherent limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of operating results or capital position as reported under GAAP. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant items and other factors, and since they are not required to be uniformly applied, they may not be comparable to other similarly titled measures at other companies. Adjusted net income available to common shareholders, adjusted diluted earnings per share, adjusted return on average assets, and adjusted return on average common equity are measures used by management to evaluate operating results exclusive of items that are not indicative of ongoing operations and impact period-to-period comparisons. Adjusted non-interest revenue and adjusted revenue are measures used by management to evaluate non-interest revenue and total revenue exclusive of fair value adjustment on non-qualified deferred compensation and other items not indicative of ongoing operations that could impact period-to-period comparisons. Adjusted non-interest expense and the adjusted tangible efficiency ratio are measures utilized by management to measure the success of expense management initiatives focused on reducing recurring controllable operating costs. Return on average tangible common equity and adjusted return on average tangible common equity are measures used by management to compare Synovus’ performance with other financial institutions because it calculates the return available to common shareholders without the impact of intangible assets and their related amortization, thereby allowing management to evaluate the performance of the business consistently. The tangible common equity ratio is used by management to assess the strength of our capital position. The computations of these measures are set forth in the tables below. Reconciliation of Non-GAAP Financial Measures (in thousands, except per share data) 4Q23 3Q23 4Q22 2023 2022 Adjusted net income available to common shareholders and adjusted net income per common share, diluted Net income available to common shareholders $ 60,645 $ 87,423 $ 197,479 $ 507,755 $ 724,739 (Gain) on sale of GLOBALT — (1,929 ) — (1,929 ) — Restructuring charges (reversals) 1,231 17,319 (2,372 ) 17,707 (9,690 ) Valuation adjustment to Visa derivative — 900 2,500 3,927 6,000 (Gain) loss on early extinguishment of debt (4,497 ) (526 ) — (5,400 ) 677 Recovery of NPA — — — (13,126 ) — Loss on other loans held for sale — 30,954 — 50,064 — Investment securities (gains) losses, net 77,748 — — 76,718 — Tax effect of adjustments(1) (18,226 ) (11,371 ) (31 ) (31,312 ) 733 Adjusted net income available to common shareholders $ 116,901 $ 122,770 $ 197,576 $ 604,404 $ 722,459 Weighted average common shares outstanding, diluted 146,877 146,740 146,528 146,734 146,481 Net income per common share, diluted $ 0.41 $ 0.60 $ 1.35 $ 3.46 $ 4.95 Adjusted net income per common share, diluted 0.80 0.84 1.35 4.12 4.93 (1) An assumed marginal tax rate of 24.5% for 4Q23 and 2023 and 24.3% for 3Q23, 4Q22, and 2022 was applied. Reconciliation of Non-GAAP Financial Measures, continued (dollars in thousands) 4Q23 3Q23 4Q22 2023 2022 Adjusted non-interest revenue Total non-interest revenue $ 51,468 $ 107,139 $ 102,439 $ 404,010 $ 409,336 (Gain) on sale of GLOBALT — (1,929 ) — (1,929 ) — Recovery of NPA — — — (13,126 ) — Investment securities (gains) losses, net 77,748 — — 76,718 — Fair value adjustment on non-qualified deferred compensation (3,053 ) 1,035 (1,557 ) (4,987 ) 4,054 Adjusted non-interest revenue $ 126,163 $ 106,245 $ 100,882 $ 460,686 $ 413,390 Adjusted non-interest expense Total non-interest expense $ 352,858 $ 353,532 $ 308,996 $ 1,335,424 $ 1,157,506 (Loss) gain on other loans held for sale — (30,954 ) — (50,064 ) — Restructuring (charges) reversals (1,231 ) (17,319 ) 2,372 (17,707 ) 9,690 Valuation adjustment to Visa derivative — (900 ) (2,500 ) (3,927 ) (6,000 ) Gain (loss) on early extinguishment of debt 4,497 526 — 5,400 (677 ) Fair value adjustment on non-qualified deferred compensation (3,053 ) 1,035 (1,557 ) (4,987 ) 4,054 Adjusted non-interest expense $ 353,071 $ 305,920 $ 307,311 $ 1,264,139 $ 1,164,573 (dollars in thousands) 4Q23 3Q23 4Q22 Adjusted revenue and tangible efficiency ratio Adjusted non-interest expense $ 353,071 $ 305,920 $ 307,311 Amortization of intangibles (3,168 ) (3,042 ) (2,118 ) Adjusted tangible non-interest expense $ 349,903 $ 302,878 $ 305,193 Net interest income $ 437,214 $ 443,159 $ 501,346 Total non-interest revenue 51,468 107,139 102,439 Total revenue 488,682 550,298 603,785 Tax equivalent adjustment 1,216 1,148 1,131 Total TE revenue 489,898 551,446 604,916 (Gain) on sale of GLOBALT — (1,929 ) — Recovery of NPA — — — Investment securities (gains) losses, net 77,748 — — Fair value adjustment on non-qualified deferred compensation (3,053 ) 1,035 (1,557 ) Adjusted revenue $ 564,593 $ 550,552 $ 603,359 Efficiency ratio-TE 72.03 % 64.11 % 51.08 % Adjusted tangible efficiency ratio 61.97 55.01 50.58 Reconciliation of Non-GAAP Financial Measures, continued (in thousands, except per share data) 4Q23 3Q23 4Q22 Adjusted return on average assets (annualized) Net income $ 69,573 $ 96,465 $ 205,770 Loss on other loans held for sale — 30,954 — Restructuring charges (reversals) 1,231 17,319 (2,372 ) (Gain) on sale of GLOBALT — (1,929 ) — Valuation adjustment to Visa derivative — 900 2,500 (Gain) on early extinguishment of debt (4,497 ) (526 ) — Investment securities (gains) losses, net 77,748 — — Tax effect of adjustments(1) (18,226 ) (11,371 ) (31 ) Adjusted net income $ 125,829 $ 131,812 $ 205,867 Net income annualized $ 276,023 $ 382,714 $ 816,370 Adjusted net income annualized $ 499,213 $ 522,950 $ 816,755 Total average assets $ 59,164,065 $ 59,916,679 $ 58,963,417 Return on average assets (annualized) 0.47 % 0.64 % 1.38 % Adjusted return on average assets (annualized) 0.84 0.87 1.39 (1) An assumed marginal tax rate of 24.5% for 4Q23 and 24.3% for both 3Q23 and 4Q22 was applied. Reconciliation of Non-GAAP Financial Measures, continued (dollars in thousands) 4Q23 3Q23 4Q22 Adjusted return on average common equity, return on average tangible common equity, and adjusted return on average tangible common equity (annualized) Net income available to common shareholders $ 60,645 $ 87,423 $ 197,479 Loss on other loans held for sale — 30,954 — Restructuring charges (reversals) 1,231 17,319 (2,372 ) (Gain) on sale of GLOBALT — (1,929 ) — Valuation adjustment to Visa derivative — 900 2,500 (Gain) on early extinguishment of debt (4,497 ) (526 ) — Subtract/add: Investment securities (gains) losses, net 77,748 — — Subtract/add: Tax effect of adjustments(1) (18,226 ) (11,371 ) (31 ) Adjusted net income available to common shareholders $ 116,901 $ 122,770 $ 197,576 Adjusted net income available to common shareholders annualized $ 463,792 $ 487,077 $ 783,861 Amortization of intangibles, tax effected, annualized 9,493 9,131 6,358 Adjusted net income available to common shareholders excluding amortization of intangibles annualized $ 473,285 $ 496,208 $ 790,219 Net income available to common shareholders annualized $ 240,602 $ 346,841 $ 783,476 Amortization of intangibles, tax effected, annualized 9,493 9,131 6,358 Net income available to common shareholders excluding amortization of intangibles annualized $ 250,095 $ 355,972 $ 789,834 Total average Synovus Financial Corp. shareholders' equity less preferred stock $ 4,090,163 $ 4,223,422 $ 3,742,927 Average goodwill (479,858 ) (476,408 ) (452,390 ) Average other intangible assets, net (47,502 ) (59,016 ) (28,174 ) Total average Synovus Financial Corp. tangible shareholders' equity less preferred stock $ 3,562,803 $ 3,687,998 $ 3,262,363 Return on average common equity (annualized) 5.9 % 8.2 % 20.9 % Adjusted return on average common equity (annualized) 11.3 11.5 20.9 Return on average tangible common equity (annualized) 7.0 9.7 24.2 Adjusted return on average tangible common equity (annualized) 13.3 13.5 24.2 (1) An assumed marginal tax rate of 24.5% for 4Q23 and 24.3% for both 3Q23 and 4Q22 was applied. Reconciliation of Non-GAAP Financial Measures, continued December 31, September 30, December 31, (dollars in thousands) 2023 2023 2022 Tangible common equity ratio Total assets $ 59,809,534 $ 59,342,930 $ 59,731,378 Goodwill (480,440 ) (479,851 ) (452,390 ) Other intangible assets, net (45,928 ) (49,096 ) (27,124 ) Tangible assets $ 59,283,166 $ 58,813,983 $ 59,251,864 Total Synovus Financial Corp. shareholders' equity $ 5,119,993 $ 4,536,958 $ 4,475,801 Goodwill (480,440 ) (479,851 ) (452,390 ) Other intangible assets, net (45,928 ) (49,096 ) (27,124 ) Preferred stock, no par value (537,145 ) (537,145 ) (537,145 ) Tangible common equity $ 4,056,480 $ 3,470,866 $ 3,459,142 Total Synovus Financial Corp. shareholders’ equity to total assets ratio 8.56 % 7.65 % 7.49 % Tangible common equity ratio 6.84 5.90 5.84 Synovus INCOME STATEMENT DATA (Unaudited) Years Ended (Dollars in thousands, except per share data) December 31, 2023 2022 % Change Interest income $ 3,050,358 $ 2,075,787 47 % Interest expense 1,233,703 278,887 342 Net interest income 1,816,655 1,796,900 1 Provision for (reversal of) credit losses 189,079 84,553 124 Net interest income after provision for credit losses 1,627,576 1,712,347 (5 ) Non-interest revenue: Service charges on deposit accounts 90,096 93,067 (3 ) Fiduciary and asset management fees 78,077 78,414 — Card fees 72,357 61,833 17 Brokerage revenue 83,431 67,034 24 Mortgage banking income 15,157 17,476 (13 ) Capital markets income 32,181 26,702 21 Income from bank-owned life insurance 31,429 29,720 6 Investment securities gains (losses), net (76,718 ) — nm Recovery of NPA 13,126 — nm Other non-interest revenue 64,874 35,090 85 Total non-interest revenue 404,010 409,336 (1 ) Non-interest expense: Salaries and other personnel expense 728,378 681,710 7 Net occupancy, equipment, and software expense 179,581 174,730 3 Third-party processing and other services 86,649 88,617 (2 ) Professional fees 39,854 37,189 7 FDIC insurance and other regulatory fees 94,737 29,083 226 Restructuring charges (reversals) 17,707 (9,690 ) (283 ) Loss on other loans held for sale 50,064 — nm Other operating expenses 138,454 155,867 (11 ) Total non-interest expense 1,335,424 1,157,506 15 Income before income taxes 696,162 964,177 (28 ) Income tax expense 154,021 206,275 (25 ) Net income 542,141 757,902 (28 ) Less: Net income (loss) attributable to noncontrolling interest (1,564 ) — nm Net income attributable to Synovus Financial Corp. 543,705 757,902 (28 ) Less: Preferred stock dividends 35,950 33,163 8 Net income available to common shareholders $ 507,755 $ 724,739 (30 )% Net income per common share, basic 3.48 4.99 (30 )% Net income per common share, diluted 3.46 4.95 (30 ) Cash dividends declared per common share 1.52 1.36 12 Return on average assets 0.90 % 1.32 % (42) bps Return on average common equity 12.17 17.41 (524 ) Weighted average common shares outstanding, basic 146,115 145,364 1 % Weighted average common shares outstanding, diluted 146,734 146,481 — nm - not meaningful bps - basis points Synovus INCOME STATEMENT DATA (Unaudited) (Dollars in thousands, except per share data) 2023 2022 Fourth Quarter Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter 23 vs '22 % Change Interest income $ 788,297 786,039 759,143 716,879 654,654 20 % Interest expense 351,083 342,880 303,612 236,128 153,308 129 Net interest income 437,214 443,159 455,531 480,751 501,346 (13 ) Provision for (reversal of) credit losses 45,472 72,572 38,881 32,154 34,884 30 Net interest income after provision for credit losses 391,742 370,587 416,650 448,597 466,462 (16 ) Non-interest revenue: Service charges on deposit accounts 22,260 21,385 23,477 22,974 23,639 (6 ) Fiduciary and asset management fees 18,149 20,205 20,027 19,696 18,836 (4 ) Card fees 20,872 18,602 17,059 15,824 15,887 31 Brokerage revenue 19,727 20,237 20,908 22,558 19,996 (1 ) Mortgage banking income 3,019 3,671 4,609 3,858 2,554 18 Capital markets income 5,104 6,377 6,975 13,725 6,998 (27 ) Income from bank-owned life insurance 10,324 6,965 6,878 7,262 7,206 43 Investment securities gains (losses), net (77,748 ) — — 1,030 — nm Recovery of NPA — — — 13,126 — nm Other non-interest revenue 29,761 9,697 12,343 13,073 7,323 306 Total non-interest revenue 51,468 107,139 112,276 133,126 102,439 (50 ) Non-interest expense: Salaries and other personnel expense 176,712 179,741 183,001 188,924 182,629 (3 ) Net occupancy, equipment, and software expense 48,146 45,790 42,785 42,860 45,192 7 Third-party processing and other services 21,717 21,439 21,659 21,833 23,130 (6 ) Professional fees 11,147 10,147 9,597 8,963 11,096 — FDIC insurance and other regulatory fees 61,470 11,837 11,162 10,268 8,232 647 Restructuring charges (reversals) 1,231 17,319 (110 ) (733 ) (2,372 ) (152 ) Loss on other loans held for sale — 30,954 2,360 16,750 — nm Other operating expenses 32,435 36,305 36,727 32,987 41,089 (21 ) Total non-interest expense 352,858 353,532 307,181 321,852 308,996 14 Income before income taxes 90,352 124,194 221,745 259,871 259,905 (65 ) Income tax expense 20,779 27,729 47,801 57,712 54,135 (62 ) Net income 69,573 96,465 173,944 202,159 205,770 (66 ) Less: Net income (loss) attributable to noncontrolling (768 ) (630 ) (166 ) — — nm Net income attributable to Synovus Financial Corp. 70,341 97,095 174,110 202,159 205,770 (66 ) Less: Preferred stock dividends 9,696 9,672 8,291 8,291 8,291 17 Net income available to common shareholders $ 60,645 87,423 165,819 193,868 197,479 (69 ) Net income per common share, basic $ 0.41 0.60 1.13 1.33 1.36 (69 )% Net income per common share, diluted 0.41 0.60 1.13 1.32 1.35 (69 ) Cash dividends declared per common share 0.38 0.38 0.38 0.38 0.34 12 Return on average assets * 0.47 % 0.64 1.15 1.36 1.38 (91) bps Return on average common equity * 5.88 8.21 15.45 19.23 20.93 nm Weighted average common shares outstanding, basic 146,372 146,170 146,113 145,799 145,467 1 % Weighted average common shares outstanding, diluted 146,877 146,740 146,550 146,727 146,528 — nm - not meaningful bps - basis points * - ratios are annualized Synovus BALANCE SHEET DATA December 31, 2023 September 30, 2023 December 31, 2022 (Unaudited) (In thousands, except share data) ASSETS Cash and due from banks $ 601,188 $ 604,631 $ 624,097 Interest-bearing funds with Federal Reserve Bank 1,741,059 1,431,356 1,280,684 Interest earning deposits with banks 71,856 65,468 34,632 Federal funds sold and securities purchased under resale agreements 37,323 36,176 38,367 Cash and cash equivalents 2,451,426 2,137,631 1,977,780 Investment securities available for sale, at fair value 9,788,662 9,237,191 9,678,103 Loans held for sale ($47,338, $48,994 and $51,136 measured at fair value, respectively) 52,768 66,558 391,502 Loans, net of deferred fees and costs 43,404,490 43,679,910 43,716,353 Allowance for loan losses (479,385 ) (477,532 ) (443,424 ) Loans, net 42,925,105 43,202,378 43,272,929 Cash surrender value of bank-owned life insurance 1,112,030 1,107,092 1,089,280 Premises, equipment, and software, net 365,851 364,054 370,632 Goodwill 480,440 479,851 452,390 Other intangible assets, net 45,928 49,096 27,124 Other assets 2,587,324 2,699,079 2,471,638 Total assets $ 59,809,534 $ 59,342,930 $ 59,731,378 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits: Non-interest-bearing deposits $ 12,507,616 $ 12,976,574 $ 15,639,899 Interest-bearing deposits 38,231,569 37,227,316 33,231,660 Total deposits 50,739,185 50,203,890 48,871,559 Federal funds purchased and securities sold under repurchase agreements 189,074 98,270 146,588 Other short-term borrowings 3,496 2,362 603,384 Long-term debt 1,932,534 2,704,701 4,109,597 Other liabilities 1,801,097 1,772,139 1,524,449 Total liabilities 54,665,386 54,781,362 55,255,577 Shareholders' equity: Preferred stock – no par value. Authorized 100,000,000 shares; issued 22,000,000 537,145 537,145 537,145 Common stock – $1.00 par value. Authorized 342,857,143 shares; issued 171,360,188, 170,859,506, and 170,141,492 respectively; outstanding 146,705,330, 146,204,648, and 145,486,634 respectively 171,360 170,860 170,141 Additional paid-in capital 3,955,819 3,940,507 3,920,346 Treasury stock, at cost – 24,654,858 shares (944,484 ) (944,484 ) (944,484 ) Accumulated other comprehensive income (loss), net (1,117,073 ) (1,679,404 ) (1,442,117 ) Retained earnings 2,517,226 2,512,334 2,234,770 Total Synovus Financial Corp. shareholders' equity 5,119,993 4,536,958 4,475,801 Noncontrolling interest in subsidiary 24,155 24,610 — Total equity 5,144,148 4,561,568 4,475,801 Total liabilities and shareholders' equity $ 59,809,534 $ 59,342,930 $ 59,731,378 Synovus AVERAGE BALANCES, INTEREST, AND YIELDS/RATES (Unaudited) 2023 2022 (dollars in thousands) Average Balance Interest Yield/ Rate Average Balance Interest Yield/ Rate Assets Interest earning assets: Commercial loans (1) (2) (3) $ 35,188,678 $ 2,263,117 6.43 % $ 32,402,218 $ 1,448,463 4.47 % Consumer loans (1) (2) 8,557,650 426,266 4.98 8,823,424 361,524 4.10 Less: Allowance for loan losses (463,493 ) (421,506 ) — — Loans, net 43,282,835 2,689,383 6.21 40,804,136 1,809,987 4.44 Investment securities available for sale 11,212,956 248,294 2.21 11,208,886 209,951 1.87 Trading account assets 15,486 886 5.72 13,374 261 1.95 Other earning assets(4) 1,414,586 71,349 4.98 1,220,653 18,756 1.52 FHLB and Federal Reserve Bank stock 254,420 14,975 5.89 214,289 6,722 3.14 Mortgage loans held for sale 46,035 2,993 6.50 75,325 3,353 4.45 Other loans held for sale 469,689 27,099 5.69 682,961 30,684 4.43 Total interest earning assets 56,696,007 $ 3,054,979 5.39 % 54,219,624 $ 2,079,714 3.84 % Cash and due from banks 575,370 574,250 Premises and equipment 367,159 385,622 Other real estate — 6,356 Cash surrender value of bank-owned life insurance 1,099,641 1,078,653 Other assets(5) 1,183,691 1,345,568 Total assets $ 59,921,868 $ 57,610,073 Liabilities and Shareholders' Equity Interest-bearing liabilities: Interest-bearing demand deposits $ 9,884,039 $ 176,595 1.79 % $ 9,027,636 $ 25,912 0.29 % Money market accounts 13,511,442 356,562 2.64 15,385,765 79,567 0.52 Savings deposits 1,229,975 1,046 0.09 1,481,372 399 0.03 Time deposits 5,473,405 196,481 3.59 2,667,101 13,902 0.52 Brokered deposits 6,104,461 296,071 4.85 3,644,957 67,452 1.85 Federal funds purchased and securities sold under repurchase agreements 97,114 1,667 1.69 205,753 1,308 0.63 Other short-term borrowings 528,194 24,611 4.60 466,254 10,945 2.32 Long-term debt 3,027,746 180,670 5.92 1,999,595 79,402 3.95 Total interest-bearing liabilities 39,856,376 $ 1,233,703 3.10 % 34,878,433 $ 278,887 0.80 % Non-interest-bearing demand deposits 13,662,660 16,731,967 Other liabilities 1,671,489 1,298,972 Shareholders' equity 4,731,343 4,700,701 Total liabilities and shareholders' equity $ 59,921,868 $ 57,610,073 Net interest income, taxable equivalent net interest margin (6) $ 1,821,276 3.21 % �� $ 1,800,827 3.32 % Less: taxable-equivalent adjustment 4,621 3,927 Net interest income $ 1,816,655 $ 1,796,900 (1) Average loans are shown net of deferred fees and costs. NPLs are included. (2) Interest income includes net loan fees as follows: 2023 — $47.7 million and 2022 — $57.3 million. (3) Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans and investment securities to a taxable-equivalent basis. (4) Includes interest-bearing funds with Federal Reserve Bank, interest earning deposits with banks, and federal funds sold and securities purchased under resale agreements. (5) Includes average net unrealized gains/(losses) on investment securities available for sale of $(1.62) billion and $(985.6) million for the years ended December 31, 2023 and 2022, respectively. (6) The net interest margin is calculated by dividing net interest income-taxable equivalent by average total interest earning assets. Synovus AVERAGE BALANCES, INTEREST, AND YIELDS/RATES (Unaudited) Fourth Quarter 2023 Third Quarter 2023 Fourth Quarter 2022 (dollars in thousands) Average Balance Interest Yield/ Rate Average Balance Interest Yield/ Rate Average Balance Interest Yield/ Rate Assets Interest earning assets: Commercial loans (1) (2) (3) $ 35,106,156 $ 590,588 6.67 % $ 34,990,459 $ 579,177 6.57 % $ 34,103,384 $ 474,439 5.52 % Consumer loans (1) (2) 8,491,244 109,509 5.14 8,509,757 108,065 5.06 9,041,520 101,905 4.50 Less: Allowance for loan losses (480,332 ) (461,385 ) (427,525 ) Loans, net 43,117,068 700,097 6.45 43,038,831 687,242 6.34 42,717,379 576,344 5.36 Investment securities available for sale 11,164,487 65,176 2.33 11,194,291 61,642 2.20 11,296,449 58,840 2.08 Trading account assets 13,067 215 6.59 16,186 237 5.86 15,552 68 1.75 Other earning assets(4) 1,463,176 19,689 5.26 1,237,445 16,369 5.17 1,148,099 10,490 3.58 FHLB and Federal Reserve Bank stock 187,015 3,536 7.56 244,906 3,783 6.18 270,822 2,805 4.14 Mortgage loans held for sale 39,024 696 7.14 53,904 879 6.52 46,240 688 5.95 Other loans held for sale 8,044 104 5.06 881,067 17,035 7.57 514,811 6,550 4.98 Total interest earning assets 55,991,881 $ 789,513 5.59 % 56,666,630 $ 787,187 5.51 % 56,009,352 $ 655,785 4.65 % Cash and due from banks 522,986 509,511 651,189 Premises and equipment 366,647 365,568 375,352 Other real estate — — — Cash surrender value of bank-owned life insurance 1,108,766 1,102,626 1,085,394 Other assets(5) 1,173,785 1,272,344 842,130 Total assets $ 59,164,065 $ 59,916,679 $ 58,963,417 Liabilities and Shareholders' Equity Interest-bearing liabilities: Interest-bearing demand deposits $ 10,422,286 $ 58,588 2.23 % $ 10,114,171 $ 52,983 2.08 % $ 8,627,386 $ 14,160 0.65 % Money market accounts 13,053,781 103,211 3.14 13,147,465 95,339 2.88 14,771,308 46,671 1.25 Savings deposits 1,098,914 275 0.10 1,178,322 280 0.09 1,450,153 176 0.05 Time deposits 7,198,229 75,462 4.16 6,180,584 59,972 3.85 2,567,979 7,648 1.18 Brokered deposits 6,069,055 81,444 5.32 6,442,690 83,486 5.14 4,986,542 39,500 3.14 Federal funds purchased and securities sold under repurchase agreements 93,854 350 1.46 73,344 296 1.58 141,707 437 1.21 Other short-term borrowings 2,672 51 7.50 1,722 — — 660,295 6,383 3.78 Long-term debt 1,922,661 31,702 6.55 3,230,374 50,524 6.18 3,446,306 38,333 4.39 Total interest-bearing liabilities 39,861,452 $ 351,083 3.49 % 40,368,672 $ 342,880 3.37 % 36,651,676 $ 153,308 1.66 % Non-interest-bearing demand deposits 12,744,275 13,049,343 16,569,275 Other liabilities 1,906,686 1,713,131 1,462,394 Shareholders' equity 4,651,652 4,785,533 4,280,072 Total liabilities and shareholders' equity $ 59,164,065 $ 59,916,679 $ 58,963,417 Net interest income, taxable equivalent net interest margin (6) $ 438,430 3.11 % $ 444,307 3.11 % $ 502,477 3.56 % Less: taxable-equivalent adjustment 1,216 1,148 1,131 Net interest income $ 437,214 $ 443,159 $ 501,346 (1) Average loans are shown net of deferred fees and costs. NPLs are included. (2) Interest income includes net loan fees as follows: Fourth Quarter 2023 — $13.1 million, Third Quarter 2023 — $11.8 million, and Fourth Quarter 2022 —$11.9 million. (3) Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans and investment securities to a taxable-equivalent basis. (4) Includes interest-bearing funds with Federal Reserve Bank, interest earning deposits with banks, and federal funds sold and securities purchased under resale agreements (5) Includes average net unrealized gains/(losses) on investment securities available for sale of $(1.89) billion, $(1.60) billion, and $(1.69) billion for the Fourth Quarter 2023, Third Quarter 2023, and Fourth Quarter 2022, respectively. (6) The net interest margin is calculated by dividing annualized net interest income-taxable equivalent by average total interest earning assets. Synovus LOANS OUTSTANDING BY TYPE (Unaudited) (Dollars in thousands) Total Loans Total Loans Linked Quarter Total Loans Year/Year Loan Type December 31, 2023 September 30, 2023 % Change December 31, 2022 % Change Commercial, Financial, and Agricultural $ 14,459,345 $ 14,498,966 — % $ 13,874,416 4 % Owner-Occupied 8,139,148 8,281,988 (2 ) 8,192,240 (1 ) Total Commercial & Industrial 22,598,493 22,780,954 (1 ) 22,066,656 2 Multi-Family 4,098,188 3,930,617 4 3,134,571 31 Hotels 1,803,102 1,790,094 1 1,708,194 6 Office Buildings 1,891,587 1,911,095 (1 ) 3,011,911 (37 ) Shopping Centers 1,319,049 1,327,770 (1 ) 1,403,928 (6 ) Warehouses 854,475 985,723 (13 ) 1,035,152 (17 ) Other Investment Property 1,396,903 1,432,456 (2 ) 1,350,291 3 Total Investment Properties 11,363,304 11,377,755 — 11,644,047 (2 ) 1-4 Family Construction 194,481 224,091 (13 ) 229,263 (15 ) 1-4 Family Investment Mortgage 404,021 396,813 2 387,670 4 Total 1-4 Family Properties 598,502 620,904 (4 ) 616,933 (3 ) Commercial Development 73,022 64,212 14 79,889 (9 ) Residential Development 79,961 92,209 (13 ) 108,661 (26 ) Land Acquisition 201,969 239,773 (16 ) 200,783 1 Land and Development 354,952 396,194 (10 ) 389,333 (9 ) Total Commercial Real Estate 12,316,758 12,394,853 (1 ) 12,650,313 (3 ) Consumer Mortgages 5,411,723 5,391,282 — 5,214,443 4 Home Equity Lines 1,807,399 1,784,356 1 1,757,038 3 Credit Cards 194,141 191,046 2 203,612 (5 ) Other Consumer Loans 1,075,976 1,137,419 (5 ) 1,824,291 (41 ) Total Consumer 8,489,239 8,504,103 — 8,999,384 (6 ) Total $ 43,404,490 $ 43,679,910 (1 ) $ 43,716,353 (1 ) NON-PERFORMING LOANS COMPOSITION (Unaudited) (Dollars in thousands) Total Non-performing Loans Total Non-performing Loans Linked Quarter Total Non-performing Loans Year/Year Loan Type December 31, 2023 September 30, 2023 % Change December 31, 2022 % Change Commercial, Financial, and Agricultural $ 89,870 $ 97,468 (8 ) $ 59,307 52 % Owner-Occupied 91,370 84,505 8 10,104 nm Total Commercial & Industrial 181,240 181,973 — 69,411 161 Multi-Family 1,681 1,702 (1 ) 1,857 (9 ) Office Buildings 35,338 27,810 27 309 nm Shopping Centers 641 653 (2 ) 735 (13 ) Warehouses 196 207 (5 ) 223 (12 ) Other Investment Property 1,914 572 235 349 448 Total Investment Properties 39,770 30,944 29 3,473 nm 1-4 Family Construction — — nm 55 (100 ) 1-4 Family Investment Mortgage 3,056 3,386 (10 ) 3,067 — Total 1-4 Family Properties 3,056 3,386 (10 ) 3,122 (2 ) Commercial Development — — nm — nm Residential Development 267 267 — 267 — Land Acquisition 537 538 — 891 (40 ) Land and Development 804 805 — 1,158 (31 ) Total Commercial Real Estate 43,630 35,135 24 7,753 463 Consumer Mortgages 46,108 43,863 5 36,847 25 Home Equity Lines 10,473 11,620 (10 ) 6,830 53 Other Consumer Loans 6,726 7,941 (15 ) 7,220 (7 ) Total Consumer 63,307 63,424 — 50,897 24 Total $ 288,177 $ 280,532 3 % $ 128,061 125 % Synovus CREDIT QUALITY DATA (Unaudited) (Dollars in thousands) 2023 2022 Fourth Quarter Fourth Third Second First Fourth 23 vs '22 Quarter Quarter Quarter Quarter Quarter % Change Non-performing Loans (NPL) $ 288,177 280,532 261,506 182,460 128,061 125 % Other Real Estate and Other Assets — — — — 15,320 (100 ) Non-performing Assets (NPAs) 288,177 280,532 261,506 182,460 143,381 101 Allowance for Loan Losses (ALL) 479,385 477,532 471,238 457,010 443,424 8 Reserve for Unfunded Commitments 57,230 55,185 55,729 57,473 57,455 — Allowance for Credit Losses (ACL) 536,615 532,717 526,967 514,483 500,879 7 Net Charge-Offs - Quarter 41,574 66,822 26,396 18,550 13,300 Net Charge-Offs - YTD 153,342 111,768 44,946 18,550 53,156 Net Charge-Offs / Average Loans - Quarter (1) 0.38 % 0.61 0.24 0.17 0.12 Net Charge-Offs / Average Loans - YTD (1) 0.35 0.34 0.20 0.17 0.13 NPLs / Loans 0.66 0.64 0.59 0.41 0.29 NPAs / Loans, ORE and specific other assets 0.66 0.64 0.59 0.41 0.33 ACL/Loans 1.24 1.22 1.19 1.17 1.15 ALL/Loans 1.10 1.09 1.06 1.04 1.01 ACL/NPLs 186.21 189.90 201.51 281.97 391.13 ALL/NPLs 166.35 170.22 180.20 250.47 346.26 Past Due Loans over 90 days and Still Accruing $ 5,053 3,792 3,643 3,529 3,373 50 As a Percentage of Loans Outstanding 0.01 % 0.01 0.01 0.01 0.01 Total Past Due Loans and Still Accruing $ 59,099 54,974 84,946 55,053 65,568 (10 ) As a Percentage of Loans Outstanding 0.14 % 0.13 0.19 0.12 0.15 (1) Ratio is annualized. SELECTED CAPITAL INFORMATION (1) (Unaudited) (Dollars in thousands) December 31, 2023 September 30, 2023 December 31, 2022 Common Equity Tier 1 Capital Ratio 10.22 % 10.13 9.63 Tier 1 Capital Ratio 11.28 11.18 10.68 Total Risk-Based Capital Ratio 13.07 13.12 12.54 Tier 1 Leverage Ratio 9.49 9.38 9.07 Total Synovus Financial Corp. shareholders’ equity as a Percentage of Total Assets 8.56 7.65 7.49 Tangible Common Equity Ratio(2)(4) 6.84 5.90 5.84 Book Value Per Common Share(3) $ 31.24 27.36 27.07 Tangible Book Value Per Common Share(2) 27.65 23.74 23.78 (1) Current quarter regulatory capital information is preliminary. (2) Excludes the carrying value of goodwill and other intangible assets from common equity and total assets. (3) Book Value Per Common Share consists of Total Synovus Financial Corp. shareholders' equity less Preferred Stock divided by total common shares outstanding. (4) See "Non-GAAP Financial Measures" for applicable reconciliation. 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Media Contact Audria Belton Media Relations media@synovus.com Investor Contact Jennifer H. Demba, CFA Investor Relations investorrelations@synovus.com