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Fair Value Accounting (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Financial Instruments Measured at Fair Value on Recurring Basis

The following table presents assets and liabilities measured at estimated fair value on a recurring basis.

			September 30, 2021																											December 31, 2020
(in thousands)			Level 1						Level 2						Level 3						Total Estimated Fair Value									Level 1						Level 2						Level 3						Total Estimated Fair Value
Assets
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			—						1,660						—						1,660									—						158						—						158
Other mortgage-backed securities			—						94						—						94									—						178						—						178
State and municipal securities			—						1,007						—						1,007									—						176						—						176
Asset-backed securities			—						4,115						—						4,115									—						183						—						183
Total trading securities			$	—					$	6,876					$	—					$	6,876								$	—					$	10,880					$	—					$	10,880
Investment securities available for sale:
U.S. Treasury securities			$	117,893					$	—					$	—					$	117,893								$	20,257					$	—					$	—					$	20,257
U.S. Government agency securities			—						54,989						—						54,989									—						82,320						—						82,320
Mortgage-backed securities issued by U.S. Government agencies			—						872,217						—						872,217									—						1,218,017						—						1,218,017
Mortgage-backed securities issued by U.S. Government sponsored enterprises			—						7,270,933						—						7,270,933									—						5,000,046						—						5,000,046
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises			—						1,057,488						—						1,057,488									—						1,250,377						—						1,250,377
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises			—						438,523						—						438,523									—						370,921						—						370,921
Asset-backed securities			—						650,000						—						650,000									—						—						—						—
Corporate debt securities and other debt securities			—						19,028						—						19,028									—						18,479						2,021						20,500
Total investment securities available for sale			$	117,893					$	10,363,178					$	—					$	10,481,071								$	20,257					$	7,940,160					$	2,021					$	7,962,438
Mortgage loans held for sale			$	—					$	152,258					$	—					$	152,258								$	—					$	216,647					$	—					$	216,647
Private equity investments			—						—						991						991									—						—						1,021						1,021
Other investments			—						—						10,000						10,000									—						—						—						—
Mutual funds and mutual funds held in rabbi trusts			42,002						—						—						42,002									37,650						—						—						37,650
GGL/SBA loans servicing asset			—						—						3,388						3,388									—						—						3,258						3,258
Derivative assets			—						244,991						—						244,991									—						401,295						—						401,295
Liabilities
Trading liability for short positions			—						—						—						—									—						7,717						—						7,717
Mutual funds held in rabbi trusts			25,396						—						—						25,396									20,752						—						—						20,752
Earnout liability			—						—						—						—									—						—						5,677						5,677
Derivative liabilities			—						109,320						1,171						110,491									—						155,119						2,048						157,167

Schedule of Mortgage Loans Held for Sale and Changes in Fair Value Included in Consolidated Statements of Income

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 September 30, 2021						As of December 31, 2020
Fair value			$	152,258					$	216,647
Unpaid principal balance			148,202						210,292
Fair value less aggregate unpaid principal balance			$	4,056					$	6,355

Changes in Fair Value Included in Net Income			Three Months Ended September 30,												Nine Months Ended September 30,
(in thousands)			2021						2020						2021						2020
Mortgage loans held for sale			$	(1,761)					$	251					$	(2,299)					$	6,235

Changes in Level 3 Fair Value Measurements

									Three Months Ended September 30, 2021
(in thousands)			Other Investments						Private Equity Investments						GGL / SBA Loans Servicing Asset						Earnout Liability						Visa Derivative
Beginning balance			$	—					$	1,026					$	3,321					$	(6,427)					$	(1,473)
Total gains (losses) realized/unrealized:
Included in earnings			—						(35)						(467)						243						—
Additions			10,000						—						534						—						—
Settlements			—						—						—						6,184						302
Ending balance			$	10,000					$	991					$	3,388					$	—					$	(1,171)
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 September 30, 2021			$	—					$	(35)					$	—					$	—					$	—
									Three Months Ended September 30, 2020
(in thousands)			Investment Securities Available for Sale						Private Equity Investments						GGL / SBA Loans Servicing Asset						Earnout Liability						Visa Derivative
Beginning balance			$	1,662					$	698					$	3,019					$	(15,924)					$	(1,755)
Total gains (losses) realized/unrealized:
Included in earnings			—						260						(187)						—						—
Unrealized gains (losses) included in OCI			138						—						—						—						—
Additions			—						—						268						—						—
Settlements			—						—						—						—						295
Ending balance			$	1,800					$	958					$	3,100					$	(15,924)					$	(1,460)
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 September 30, 2020			$	—					$	260					$	—					$	—					$	—

									Nine Months Ended September 30, 2021
(in thousands)			Other Investments						Investment Securities Available for Sale						Private Equity Investments						GGL / 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			—						—						(30)						(897)						(507)						—
Sales			—						(2,021)						—						—						—						—
Additions			10,000						—						—						1,027						—						—
Settlements			—						—						—						—						6,184						877
Ending balance			$	10,000					$	—					$	991					$	3,388					$	—					$	(1,171)
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 September 30, 2021			$	—					$	—					$	(30)					$	—					$	—					$	—
									Nine Months Ended September 30, 2020
(in thousands)									Investment Securities Available for Sale						Private Equity Investments						GGL / SBA Loans Servicing Asset						Earnout Liability						Visa Derivative
Beginning balance									$	2,105					$	3,887					$	3,040					$	(11,016)					$	(2,339)
Total (losses) gains realized/unrealized:
Included in earnings									—						(2,929)						(742)						(4,908)						—
Unrealized gains (losses) included in OCI									(305)						—						—						—						—
Additions									—						—						802						—						—
Settlements									—						—						—						—						879
Ending balance									$	1,800					$	958					$	3,100					$	(15,924)					$	(1,460)
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 September 30, 2020									$	—					$	(2,929)					$	—					$	(4,908)					$	—

Assets Measured at Fair Value on Non-Recurring Basis

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.

			September 30, 2021																											September 30, 2020
(in thousands)			Level 1						Level 2						Level 3						Total									Level 1						Level 2						Level 3						Total
Loans(1)			$	—					$	—					$	11,123					$	11,123								$	—					$	—					$	27,440					$	27,440
Other real estate			—						—						—						—									—						—						1,750						1,750
MPS receivable			—						—						—						—									—						—						17,915						17,915
Other assets held for sale			—						—						806						806									—						—						1,634						1,634

(1)    Collateral-dependent loans that were written down to fair value of collateral.

Fair Value Adjustments Recognized in Earnings for Assets Measured at Fair Value on a Non-recurring Basis

The following table presents fair value adjustments recognized in earnings for the three and nine months ended September 30, 2021 and 2020 for assets measured at fair value on a non-recurring basis still held at period-end.

			Three Months Ended September 30,												Nine Months Ended September 30,												Location in Consolidated Statements of Income
(in thousands)			2021						2020						2021						2020
Loans(1)			$	13,933					$	5,661					$	14,823					$	20,412					Provision for credit losses
Other real estate			—						107						—						138						Other operating expenses
MPS receivable			—						—						—						2,663						Other operating expenses
Other assets held for sale			301						—						301						2,120						Other operating expenses

(1) Collateral-dependent loans that were written down to fair value of collateral.

Carrying and Estimated Fair Values of Financial Instruments Carried on Balance Sheet

The following tables present the carrying and estimated fair values of financial instruments at September 30, 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.

			September 30, 2021
(in thousands)			Carrying Value						Fair Value						Level 1						Level 2						Level 3
Financial assets
Total cash, cash equivalents, and restricted cash			$	2,687,420					$	2,687,420					$	2,687,420					$	—					$	—
Trading securities			6,876						6,876						—						6,876						—
Investment securities available for sale			10,481,071						10,481,071						117,893						10,363,178						—
Loans held for sale			550,948						551,368						—						152,258						399,110
Private equity investments			991						991						—						—						991
Other investments			10,000						10,000						—						—						10,000
Mutual funds and mutual funds held in rabbi trusts			42,002						42,002						42,002						—						—
Loans, net			37,848,787						38,054,067						—						—						38,054,067
GGL/SBA loans servicing asset			3,388						3,388						—						—						3,388
FRB and FHLB stock			159,930						159,930						—						159,930						—
Derivative assets			244,991						244,991						—						244,991						—
Financial liabilities
Non-interest-bearing deposits			$	15,787,882					$	15,787,882					$	—					$	15,787,882					$	—
Non-time interest-bearing deposits			27,701,975						27,701,975						—						27,701,975						—
Time deposits			4,198,562						4,214,960						—						4,214,960						—
Total deposits			$	47,688,419					$	47,704,817					$	—					$	47,704,817					$	—
Federal funds purchased and securities sold under repurchase agreements			262,548						262,548						262,548						—						—
Long-term debt			1,203,761						1,254,585						—						1,254,585						—
Mutual funds held in rabbi trusts			25,396						25,396						25,396						—						—
Derivative liabilities			110,491						110,491						—						109,320						1,171

			December 31, 2020
(in thousands)			Carrying Value						Fair Value						Level 1						Level 2						Level 3
Financial assets
Total cash, cash equivalents, and restricted cash			$	4,252,917					$	4,252,917					$	4,252,917					$	—					$	—
Trading securities			10,880						10,880						—						10,880						—
Investment securities available for sale			7,962,438						7,962,438						20,257						7,940,160						2,021
Loans held for sale			760,123						760,939						—						216,647						544,292
Private equity investments			1,021						1,021						—						—						1,021
Mutual funds and mutual funds held in rabbi trusts			37,650						37,650						37,650						—						—
Loans, net			37,647,248						37,605,881						—						—						37,605,881
GGL/SBA loans servicing asset			3,258						3,258						—						—						3,258
FRB and FHLB stock			157,520						157,520						—						157,520						—
Derivative assets			401,295						401,295						—						401,295						—
Financial liabilities
Non-interest-bearing deposits			$	13,477,854					$	13,477,854					$	—					$	13,477,854					$	—
Non-time interest-bearing deposits			27,265,521						27,265,521						—						27,265,521						—
Time deposits			5,948,196						5,970,146						—						5,970,146						—
Total deposits			$	46,691,571					$	46,713,521					$	—					$	46,713,521					$	—
Federal funds purchased and securities sold under repurchase agreements			227,922						227,922						227,922						—						—
Trading liability for short positions			7,717						7,717						—						7,717						—
Long-term debt			1,202,494						1,266,825						—						1,266,825						—
Earnout liability			5,677						5,677						—						—						5,677
Mutual funds held in rabbi trusts			20,752						20,752						20,752						—						—
Derivative liabilities			157,167						157,167						—						155,119						2,048

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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