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Fair Value Accounting
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value Accounting
Note 12 - Fair Value Accounting
Fair value accounting guidance defines fair value as the exchange price that would be received to sell an asset or paid to transfer a liability (an "exit price") in the principal or most advantageous market available to the entity in an orderly transaction between market participants, on the measurement date. See "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 - Summary of Significant Accounting Policies" of this Report for a description of how fair value measurements are determined.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents all financial instruments measured at fair value on a recurring basis as of December 31, 2021 and 2020.
December 31, 2021December 31, 2020
(in thousands)Level 1Level 2Level 3Total Assets and Liabilities at Fair ValueLevel 1Level 2Level 3Total Assets and Liabilities at Fair Value
Assets
Trading securities:
Mortgage-backed securities issued by U.S. Government agencies$— $197 $— $197 $— $10,185 $— $10,185 
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises— 671 — 671 — 158 — 158 
Other mortgage-backed securities— — — — — 178 — 178 
State and municipal securities— 560 — 560 — 176 — 176 
Asset-backed securities— 6,963 — 6,963 — 183 — 183 
Total trading securities$— $8,391 $— $8,391 $— $10,880 $— $10,880 
Investment securities available for sale:
U.S. Treasury securities$117,838 $— $— $117,838 $20,257 $— $— $20,257 
U.S. Government agency securities— 54,201 — 54,201 — 82,320 — 82,320 
Mortgage-backed securities issued by U.S. Government agencies— 779,633 — 779,633 — 1,218,017 — 1,218,017 
Mortgage-backed securities issued by U.S. Government sponsored enterprises— 8,012,301 — 8,012,301 — 5,000,046 — 5,000,046 
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises— 939,623 — 939,623 — 1,250,377 — 1,250,377 
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises— 481,744 — 481,744 — 370,921 — 370,921 
Asset-backed securities— 514,188 — 514,188 — — — — 
Corporate debt securities and other debt securities— 18,801 — 18,801 — 18,479 2,021 20,500 
Total investment securities available for sale$117,838 $10,800,491 $— $10,918,329 $20,257 $7,940,160 $2,021 $7,962,438 
Mortgage loans held for sale— 108,198 — 108,198 — 216,647 — 216,647 
Other investments— — 12,185 12,185 — — 1,021 1,021 
Mutual funds and mutual funds held in rabbi trusts43,657 — — 43,657 37,650 — — 37,650 
GGL/SBA loans servicing asset— — 3,233 3,233 — — 3,258 3,258 
Derivative assets— 191,708 — 191,708 — 401,295 — 401,295 
Liabilities
Trading liability for short positions$— $200 $— $200 $— $7,717 $— $7,717 
Mutual fund held in rabbi trusts27,205 — — 27,205 20,752 — — 20,752 
Earnout liability— — — — — — 5,677 5,677 
Derivative liabilities— 95,067 3,535 98,602 — 155,119 2,048 157,167 
Fair Value Option
Synovus has elected the fair value option for mortgage loans held for sale primarily to ease the operational burden required to maintain hedge accounting for these loans. Synovus is still able to achieve effective economic hedges on mortgage loans held for sale without the time and expense needed to manage a hedge accounting program.
The following table summarizes the difference between the fair value and the UPB of mortgage loans held for sale and the changes in fair value of these loans. An immaterial portion of these changes in fair value was attributable to instrument-specific credit risk.
Years Ended December 31,
(in thousands)202120202019
Changes in fair value included in net income:
Mortgage loans held for sale$(3,942)$3,400 $1,675 
Mortgage loans held for sale:
Fair value108,198 216,647 115,173 
Unpaid principal balance105,785 210,292 112,218 
Fair value less aggregate unpaid principal balance$2,413 $6,355 $2,955 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
During 2021 and 2020, Synovus did not have any transfers in or out of Level 3 in the fair value hierarchy.
2021
(in thousands)Investment Securities Available for SaleOther InvestmentsGGL/SBA Loans Servicing AssetEarnout LiabilityVisa Derivative Liability
Beginning balance$2,021 $1,021 $3,258 $(5,677)$(2,048)
Total gains (losses) realized/unrealized:
Included in earnings— 1,164 (1,339)(507)(2,656)
Sales(2,021)— — — — 
Additions— 10,000 

— — — 
Settlements— — 1,314 6,184 1,169 
Ending balance$— $12,185 $3,233 $— $(3,535)
Total net gains (losses) for the year included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at December 31, 2021$— $1,164 $— $(2,656)
2020
(in thousands)Investment Securities Available for SaleOther InvestmentsGGL/SBA Loans Servicing AssetEarnout LiabilityVisa Derivative Liability
Beginning balance$2,105 $3,887 $3,040 $(11,016)$(2,339)
Total gains (losses) realized/unrealized:
Included in earnings— (2,866)(1,000)(4,908)(890)
Unrealized gains (losses) included in other comprehensive income(84)— — — — 
Additions— — 1,218 — — 
Settlements— — — 10,247 1,181 
Ending balance$2,021 $1,021 $3,258 $(5,677)$(2,048)
Total net gains (losses) for the year included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at December 31, 2020$— $(2,866)$— $(4,908)$(890)
The table below provides an overview of the valuation techniques and significant unobservable inputs used in those techniques to measure financial instruments that are classified within Level 3 of the valuation hierarchy and are measured at fair value on a recurring basis. The range of sensitivities that management utilized in its fair value calculations is deemed acceptable in the industry with respect to the identified financial instruments.
December 31, 2021December 31, 2020
(dollars in thousands)Valuation TechniqueSignificant Unobservable InputLevel 3 Fair ValueRate/RangeLevel 3 Fair ValueRate/Range
Assets measured at fair value on a recurring basis
Investment Securities Available for Sale:
Corporate debt and other debt securities trust preferred securityDiscounted cash flow analysisDiscount rate
Forecasted average Prime reset rate		$—N/A$2,021
4.96% 4.06%
Other investmentsIndividual analysis of each investee companyMultiple factors, including but not limited to, current operations, financial condition, cash flows, evaluation of business management and financial plans, and recently executed financing transactions related to the investee companies$12,185N/A$1,021N/A
GGL/SBA loans servicing assetDiscounted cash flow analysisDiscount rate
Prepayment speeds		$3,233
 8.55% 18.50%
$3,258
 10.79% 18.81%
Earnout liabilityOption pricing methods and Monte Carlo simulationFinancial projections of Global One through June 30, 2021$—N/A$5,677N/A
Visa derivative liabilityDiscounted cash flow analysisEstimated timing of resolution of Covered Litigation and future cumulative deposits to the litigation escrow for settlement of the Covered Litigation$3,535
0-1.8 years
(3Q 2023)
$2,048
0-1.8 years
(3Q 2022)
Assets Measured at Fair Value on a Non-recurring Basis
Certain assets are required to be measured at fair value on a non-recurring basis subsequent to their initial recognition. These assets and liabilities are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. 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.
December 31, 2021December 31, 2020
(in thousands)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Loans(1)
$— $— $19,482 $19,482 $— $— $44,802 $44,802 
Other real estate— — 270 270 — — 860 860 
MPS receivable— — — — — — 15,575 15,575 
Other assets held for sale— — 1,256 1,256 — — 2,354 2,354 
Years Ended December 31,
(in thousands)20212020Location in Consolidated Statements of Income
Loans(1)
$27,613 $21,927 Provision for credit losses
Other real estate120 200 Other operating expense
MPS receivable— 2,663 Other operating expense
Other assets held for sale462 2,292 Other operating expense
(1) Collateral-dependent loans that are written down to fair value of collateral.
The table below provides an overview of the valuation techniques and significant unobservable inputs used in those techniques to measure financial instruments that are classified within Level 3 of the valuation hierarchy and are measured at fair value on a non-recurring basis.
December 31, 2021December 31, 2020
Valuation TechniqueSignificant Unobservable Input
Range
(Weighted Average)(1)
Range
(Weighted Average)(1)
Assets measured at fair value on a non-recurring basis
LoansThird-party appraised value of collateral less estimated selling costsDiscount to appraised value
Estimated selling costs
0%-71% (48%) 0%-10% (7%)
0%-39% (25%) 0%-7% (7%)
Loans held for saleAnalysis of anticipated market prices for similar assets less estimated selling costsMarket price analysis for similar assets
Estimated selling costs		N/AN/A
Other real estateThird-party appraised value of real estate less estimated selling costsDiscount to appraised value
Estimated selling costs
0%-48% (24%) 0%-10% (7%)
0%-23% (12%) 0%-10% (7%)
MPS receivable(2)
Third-party appraised value of business less estimated selling costsDiscount to appraised value
Estimated selling costs		N/AN/A
Other assets held for saleThird-party appraised value less estimated selling costs or BOVDiscount to appraised value
Estimated selling costs
0%-51% (20%) 0%-10% (7%)
0%-66% (45%) 0%-10% (7%)
(1)    The weighted average is the measure of central tendencies; it is not the value that management is using for the asset or liability.
(2)    See "Part II - Item 8. Financial Statements and Supplementary Data - Note 14 - Commitments and Contingencies" of this Report for more information on this receivable which was classified as a NPA at December 31, 2021 and 2020.
Fair Value of Financial Instruments
The following table presents the carrying and estimated fair values of financial instruments at December 31, 2021 and 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" of this Report for a description of how fair value measurements are determined.
December 31, 2021
(in thousands)Carrying ValueFair ValueLevel 1Level 2Level 3
Financial assets
Total cash, cash equivalents, and restricted cash$3,009,853 $3,009,853 $3,009,853 $— $— 
Trading securities8,391 8,391 — 8,391 — 
Investment securities available for sale10,918,329 10,918,329 117,838 10,800,491 — 
Loans held for sale750,642 749,980 — 108,198 641,782 
Other investments12,185 12,185 — — 12,185 
Mutual funds and mutual funds held in rabbi trusts43,657 43,657 43,657 — — 
Loans, net of deferred fees and costs38,884,361 39,118,275 — — 39,118,275 
GGL/SBA loans servicing asset3,233 3,233 — — 3,233 
FRB and FHLB stock159,941 159,941 — 159,941 — 
Derivative assets191,708 191,708 — 191,708 — 
Financial Liabilities
Non-interest-bearing deposits$16,392,653 $16,392,653 $— $16,392,653 $— 
Non-time interest-bearing deposits28,917,148 28,917,148 — 28,917,148 — 
Time deposits4,117,475 4,125,673 — 4,125,673 — 
Total deposits$49,427,276 $49,435,474 $— $49,435,474 $— 
Securities sold under repurchase agreements264,133 264,133 264,133 — — 
Trading liability for short positions200 200 — 200 — 
Long-term debt1,204,229 1,243,147 — 1,243,147 — 
Mutual fund held in rabbi trusts27,205 27,205 27,205 — — 
Derivative liabilities98,602 98,602 — 95,067 3,535 
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 
Other investments1,021 1,021 — — 1,021 
Mutual funds and mutual funds held in rabbi trusts37,650 37,650 37,650 — — 
Loans, net of deferred fees and costs37,647,248 37,605,881 — — 37,605,881 
GGL/SBA loans servicing asset3,258 3,258 — — 3,258 
FRB and FHLB stock157,520 157,520 — 157,520 — 
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 
Mutual fund held in rabbi trusts20,752 20,752 20,752 — — 
Derivative liabilities157,167 157,167 — 155,119 2,048