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Fair Value Accounting
 6 Months Ended
Jun. 30, 2022
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' 2021 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.
June 30, 2022December 31, 2021
(in thousands)Level 1Level 2Level 3Total Estimated Fair ValueLevel 1Level 2Level 3Total Estimated Fair Value
Assets
Trading securities:
Mortgage-backed securities issued by U.S. Government agencies $— $2,795 $— $2,795 $— $197 $— $197 
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises — 412 — 412 — 671 — 671 
Other mortgage-backed securities— 3,231 — 3,231 — — — — 
State and municipal securities— 28 — 28 — 560 — 560 
Asset-backed securities— 9,811 — 9,811 — 6,963 — 6,963 
Total trading securities$— $16,277 $— $16,277 $— $8,391 $— $8,391 
Investment securities available for sale:
U.S. Treasury securities$386,584 $— $— $386,584 $117,838 $— $— $117,838 
U.S. Government agency securities— 50,895 — 50,895 — 54,201 — 54,201 
Mortgage-backed securities issued by U.S. Government agencies — 631,971 — 631,971 — 779,633 — 779,633 
Mortgage-backed securities issued by U.S. Government sponsored enterprises — 7,242,641 — 7,242,641 — 8,012,301 — 8,012,301 
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises — 753,086 — 753,086 — 939,623 — 939,623 
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises— 605,119 — 605,119 — 481,744 — 481,744 
Asset-backed securities— 201,366 — 201,366 — 514,188 — 514,188 
Corporate debt securities and other debt securities— 18,188 — 18,188 — 18,801 — 18,801 
Total investment securities available for sale$386,584 $9,503,266 $— $9,889,850 $117,838 $10,800,491 $— $10,918,329 
Mortgage loans held for sale$— $76,864 $— $76,864 $— $108,198 $— $108,198 
Other investments— — 11,083 11,083 — — 12,185 12,185 
Mutual funds and mutual funds held in rabbi trusts41,254 — — 41,254 43,657 — — 43,657 
GGL/SBA loans servicing asset— — 3,155 3,155 — — 3,233 3,233 
Derivative assets— 191,377 — 191,377 — 191,708 — 191,708 
Liabilities
Trading liability for short positions$— $5,018 $— $5,018 $— $200 $— $200 
Mutual funds held in rabbi trusts25,995 — — 25,995 27,205 — — 27,205 
Derivative liabilities— 339,722 4,993 344,715 — 95,067 3,535 98,602 
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 June 30, 2022As of December 31, 2021
Fair value$76,864 $108,198 
Unpaid principal balance75,996 105,785 
Fair value less aggregate unpaid principal balance$868 $2,413 
Changes in Fair Value Included in Net IncomeThree Months Ended June 30,Six Months Ended June 30, Location in Consolidated Statements of Income
(in thousands)2022202120222021
Mortgage loans held for sale$805 $4,094 $(1,545)$(538)Mortgage banking income
Activity for Level 3 Assets and Liabilities
See "Part II - Item 8. Financial Statements and Supplementary Data - Note 12 - Fair Value Accounting" of Synovus' 2021 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 and six months ended June 30, 2022 and 2021, 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 June 30, 2022
(in thousands)Other InvestmentsGGL / SBA
Loans Servicing Asset		Visa Derivative
Beginning balance$12,093 $3,451 $(1,776)
Total gains (losses) realized/unrealized:
Included in earnings(7,037)(510)(3,500)
Additions6,027 — — 
Settlements— 214 283 
Ending balance$11,083 $3,155 $(4,993)
Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains/(losses) relating to assets/liabilities still held at June 30, 2022$(7,037)$— $(3,500)
Three Months Ended June 30, 2021
(in thousands)Investment Securities Available for SaleOther InvestmentsGGL / SBA
Loans Servicing Asset		Earnout
Liability 		Visa Derivative
Beginning balance$— $1,053 $3,305 $(5,677)$(1,768)
Total gains (losses) realized/unrealized:
Included in earnings— (27)(252)(750)— 
Additions— — 268 — — 
Settlements— — — — 295 
Ending balance$— $1,026 $3,321 $(6,427)$(1,473)
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 June 30, 2021$— $(27)$— $(750)$— 
Six Months Ended June 30, 2022
(in thousands)Other InvestmentsGGL / SBA
Loans Servicing Asset		Visa Derivative
Beginning balance$12,185 $3,233 $(3,535)
Total gains (losses) realized/unrealized:
Included in earnings(7,129)(772)(3,500)
Additions6,027 — — 
Settlements— 694 2,042 
Ending balance$11,083 $3,155 $(4,993)
Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains/(losses) relating to assets/liabilities still held at June 30, 2022$(7,129)$— $(3,500)
Six Months Ended June 30, 2021
(in thousands)Investment Securities Available for SaleOther 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— 5 (430)(750)— 
Sales(2,021)— — — — 
Additions— — 493 — — 
Settlements— — — — 575 
Ending balance$— $1,026 $3,321 $(6,427)$(1,473)
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 June 30, 2021$— $5 $— $(750)$— 
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.
June 30, 2022Fair Value Adjustments for the Location in Consolidated Statements of Income
(in thousands)Level 1Level 2Level 3
Three Months Ended June 30, 2022
Six Months Ended June 30, 2022
Loans(1)        
$— $— $24,360 $8,900 $9,239 Provision for credit losses
Other assets held for sale— — 2,725 — 492 Other operating expense
June 30, 2021Fair Value Adjustments for theLocation in Consolidated Statements of Income
Level 1Level 2Level 3
Three Months Ended June 30, 2021
Six Months Ended June 30, 2021
Loans(1)        
$— $— $29,201 $13,476 $13,504 Provision for credit losses
Other real estate— — 42 2 2 Other operating expense
Other assets held for sale— — 1,170 76 76 Other operating expense
(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 June 30, 2022 and December 31, 2021 was $11.4 million and $11.8 million, respectively.
Fair Value of Financial Instruments
The following tables present the carrying and estimated fair values of financial instruments at June 30, 2022 and December 31, 2021. 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' 2021 Form 10-K for a description of how fair value measurements are determined.
June 30, 2022
(in thousands)Carrying ValueFair ValueLevel 1Level 2Level 3
Financial assets
Total cash, cash equivalents, and restricted cash$1,665,060 $1,665,060 $1,665,060 $— $— 
Trading securities16,277 16,277 — 16,277 — 
Investment securities available for sale9,889,850 9,889,850 386,584 9,503,266 — 
Loans held for sale917,679 917,347 — 76,864 840,483 
Other investments11,083 11,083 — — 11,083 
Mutual funds and mutual funds held in rabbi trusts41,254 41,254 41,254 — — 
Loans, net40,796,943 40,886,790 — — 40,886,790 
GGL/SBA loans servicing asset3,155 3,155 — — 3,155 
FRB and FHLB stock206,177 206,177 — 206,177 
Derivative assets191,377 191,377 — 191,377 — 
Financial liabilities
Non-interest-bearing deposits$16,876,710 $16,876,710 $— $16,876,710 $— 
Non-time interest-bearing deposits27,084,663 27,084,663 — 27,084,663 — 
Time deposits5,073,327 5,052,977 — 5,052,977 — 
Total deposits$49,034,700 $49,014,350 $— $49,014,350 $— 
Federal funds purchased and securities sold under repurchase agreements345,242 345,242 345,242 — — 
Trading liability for short positions5,018 5,018 — 5,018 — 
Short-term borrowings250,000 250,000 — 250,000 — 
Long-term debt1,804,104 1,793,812 — 1,793,812 — 
Mutual funds held in rabbi trusts25,995 25,995 25,995 — — 
Derivative liabilities344,715 344,715 — 339,722 4,993 
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, net38,884,361 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 $— 
Federal funds purchased and 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 funds held in rabbi trusts27,205 27,205 27,205 — — 
Derivative liabilities98,602 98,602 — 95,067 3,535