XML 30 R14.htm IDEA: XBRL DOCUMENT v3.21.1
Fair Value Accounting
 3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value Accounting Note 6 - Fair Value Accounting
See "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 - Summary of Significant Accounting Policies" of Synovus' 2020 Form 10-K for a description of valuation methodologies for assets and liabilities measured at fair value on a recurring and non-recurring basis.

The following table presents assets and liabilities measured at estimated fair value on a recurring basis.
March 31, 2021December 31, 2020
(in thousands)Level 1Level 2Level 3Total Estimated Fair ValueLevel 1Level 2Level 3Total Estimated Fair Value
Recurring fair value measurements
Trading securities:
Mortgage-backed securities issued by U.S. Government agencies $— $— $— $— $— $10,185 $— $10,185 
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises — 555 — 555 — 158 — 158 
Other mortgage-backed securities— 375 — 375 — 178 — 178 
State and municipal securities— 1,541 — 1,541 — 176 — 176 
Asset-backed securities— 1,915 — 1,915 — 183 — 183 
Total trading securities$— $4,386 $— $4,386 $— $10,880 $— $10,880 
Investment securities available for sale:
U.S. Treasury securities$66,456 $— $— $66,456 $20,257 $— $— $20,257 
U.S. Government agency securities— 81,174 — 81,174 — 82,320 — 82,320 
Mortgage-backed securities issued by U.S. Government agencies — 955,182 — 955,182 — 1,218,017 — 1,218,017 
Mortgage-backed securities issued by U.S. Government sponsored enterprises — 6,101,775 — 6,101,775 — 5,000,046 — 5,000,046 
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises — 1,157,223 — 1,157,223 — 1,250,377 — 1,250,377 
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises— 445,214 — 445,214 — 370,921 — 370,921 
Corporate debt securities and other debt securities— 18,733 — 18,733 — 18,479 2,021 20,500 
Total investment securities available for sale$66,456 $8,759,301 $— $8,825,757 $20,257 $7,940,160 $2,021 $7,962,438 
Mortgage loans held for sale$— $242,010 $— $242,010 $— $216,647 $— $216,647 
Private equity investments— — 1,053 1,053 — — 1,021 1,021 
Mutual funds and mutual funds held in rabbi trusts39,943 — — 39,943 37,650 — — 37,650 
GGL/SBA loans servicing asset— — 3,305 3,305 — — 3,258 3,258 
Derivative assets— 276,831 — 276,831 — 401,295 — 401,295 
Trading liability for short positions— — — — — 7,717 — 7,717 
Earnout liability— — 5,677 5,677 — — 5,677 5,677 
Derivative liabilities— 135,725 1,768 137,493 — 155,119 2,048 157,167 
Fair Value Option
Synovus has elected the fair value option for mortgage loans held for sale primarily to ease the operational burden required to maintain hedge accounting for these loans. Synovus is still able to achieve effective economic hedges on mortgage loans held for sale without the time and expense needed to manage a hedge accounting program.
The following table summarizes the difference between the fair value and the UPB of mortgage loans held for sale and the changes in fair value of these loans. An immaterial portion of these changes in fair value was attributable to changes in instrument-specific credit risk.
Mortgage Loans Held for Sale
(in thousands)As of March 31, 2021As of December 31, 2020
Fair value$242,010 $216,647 
Unpaid principal balance240,287 210,292 
Fair value less aggregate unpaid principal balance$1,723 $6,355 

Changes in Fair Value Included in Net IncomeThree Months Ended March 31,
(in thousands)20212020
Mortgage loans held for sale$(4,632)$619 
Activity for Level 3 Assets and Liabilities
See "Part II - Item 8. Financial Statements and Supplementary Data - Note 14 - Fair Value Accounting" of Synovus' 2020 Form 10-K for a description of the valuation techniques and significant inputs for Level 3 assets and liabilities that are measured at fair value on a recurring and non-recurring basis. During the three months ended March 31, 2021 and 2020, Synovus did not have any transfers in or out of Level 3 in the fair value hierarchy. The following tables provide rollforwards of Level 3 assets and liabilities measured at fair value on a recurring basis.
Three Months Ended March 31, 2021
(in thousands)Investment Securities Available for SalePrivate Equity InvestmentsGGL / SBA
Loans Servicing Asset		Earnout
Liability 		Visa Derivative
Beginning balance$2,021 $1,021 $3,258 $(5,677)$(2,048)
Total gains (losses) realized/unrealized:
Included in earnings— 32 (178)— — 
Sales(2,021)— — — — 
Additions— — 225 — — 
Settlements— — — — 280 
Ending balance$— $1,053 $3,305 $(5,677)$(1,768)
Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains/(losses) relating to assets/liabilities still held at March 31, 2021$— $32 $— $— $— 
Three Months Ended March 31, 2020
(in thousands)Investment Securities Available for SalePrivate Equity InvestmentsGGL / SBA
Loans Servicing Asset		Earnout
Liability 		Visa Derivative
Beginning balance$2,105 $3,887 $3,040 $(11,016)$(2,339)
Total gains (losses) realized/unrealized:
Included in earnings— (632)(264)— — 
Unrealized gains (losses) included in OCI(543)— — — — 
Additions— — 373 — — 
Settlements— — — — 289 
Ending balance$1,562 $3,255 $3,149 $(11,016)$(2,050)
Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains/(losses) relating to assets/liabilities still held at March 31, 2020$— $(632)$— $— $— 
The following table presents assets measured at fair value on a non-recurring basis as of the dates indicated for which there was a fair value adjustment.
March 31, 2021March 31, 2020
(in thousands)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Loans(1)
$— $— $14,026 $14,026 $— $— $— $— 
Other real estate— — — — — — 460 460 
MPS receivable— — — — — — 18,490 18,490 
Other assets held for sale— — — — — — 1,206 1,206 
(1) Collateral-dependent loans that were written down to fair value of collateral.
ORE properties are included in other assets on the consolidated balance sheets. The carrying value of ORE at March 31, 2021 and December 31, 2020 was $1.4 million and $1.8 million, respectively.
The following table presents fair value adjustments recognized in earnings for the three months ended March 31, 2021 and 2020 for assets measured at fair value on a non-recurring basis still held at period-end.
Three Months Ended March 31,Location in Consolidated Statements of Income
(in thousands)20212020
Loans(1)
$7,002 $— Provision for credit losses
Other real estate— 5 Other operating expenses
MPS receivable— 2,663 Other operating expenses
Other assets held for sale— 1,391 Other operating expenses
(1) Collateral-dependent loans that were written down to fair value of collateral.
Fair Value of Financial Instruments
The following tables present the carrying and estimated fair values of financial instruments at March 31, 2021 and December 31, 2020. The fair values represent management’s best estimates based on a range of methodologies and assumptions. See "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 - Summary of Significant Accounting Policies" to the consolidated financial statements of Synovus' 2020 Form 10-K for a description of how fair value measurements are determined.
March 31, 2021
(in thousands)Carrying ValueFair ValueLevel 1Level 2Level 3
Financial assets
Total cash, cash equivalents, and restricted cash$3,328,266 $3,328,266 $3,328,266 $— $— 
Trading securities4,386 4,386 — 4,386 — 
Investment securities available for sale8,825,757 8,825,757 66,456 8,759,301 — 
Loans held for sale993,887 993,902 — 242,010 751,892 
Private equity investments1,053 1,053 — — 1,053 
Mutual funds and mutual funds held in rabbi trusts39,943 39,943 39,943 — — 
Loans, net38,241,887 38,126,309 — — 38,126,309 
GGL/SBA loans servicing asset3,305 3,305 — — 3,305 
Derivative assets276,831 276,831 — 276,831 — 
Financial liabilities
Non-interest-bearing deposits$14,660,287 $14,660,287 $— $14,660,287 $— 
Non-time interest-bearing deposits27,492,165 27,492,165 — 27,492,165 — 
Time deposits5,216,499 5,240,983 — 5,240,983 — 
Total deposits$47,368,951 $47,393,435 $— $47,393,435 $— 
Securities sold under repurchase agreements293,659 293,659 293,659 — — 
Long-term debt1,202,825 1,274,158 — 1,274,158 — 
Earnout liability5,677 5,677 — — 5,677 
Derivative liabilities137,493 137,493 — 135,725 1,768 
December 31, 2020
(in thousands)Carrying ValueFair ValueLevel 1Level 2Level 3
Financial assets
Total cash, cash equivalents, and restricted cash$4,252,917 $4,252,917 $4,252,917 $— $— 
Trading securities10,880 10,880 — 10,880 — 
Investment securities available for sale7,962,438 7,962,438 20,257 7,940,160 2,021 
Loans held for sale760,123 760,939 — 216,647 544,292 
Private equity investments1,021 1,021 — — 1,021 
Mutual funds and mutual funds held in rabbi trusts37,650 37,650 37,650 — — 
Loans, net37,647,248 37,605,881 — — 37,605,881 
GGL/SBA loans servicing asset3,258 3,258 — — 3,258 
Derivative assets401,295 401,295 — 401,295 — 
Financial liabilities
Non-interest-bearing deposits$13,477,854 $13,477,854 $— $13,477,854 $— 
Non-time interest-bearing deposits27,265,521 27,265,521 — 27,265,521 — 
Time deposits5,948,196 5,970,146 — 5,970,146 — 
Total deposits$46,691,571 $46,713,521 $— $46,713,521 $— 
Securities sold under repurchase agreements227,922 227,922 227,922 — — 
Trading liability for short positions7,717 7,717 — 7,717 — 
Long-term debt1,202,494 1,266,825 — 1,266,825 — 
Earnout liability5,677 5,677 — — 5,677 
Derivative liabilities157,167 157,167 — 155,119 2,048