XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.23.2

Goodwill and Other Intangible Assets | 6 Months Ended
--- | ---
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Note 4 - Goodwill and Other Intangible Assets Effective April 1, 2023, Synovus changed its internal management reporting structure to transfer Capital Markets activities and related personnel from the Financial Management Services segment to the Wholesale Banking segment. See Note 10 - Segment Reporting for additional information. In connection with the transfer, management reallocated a portion of the Wealth Management goodwill that was attributable to the Financial Management Services segment to Wholesale Banking using a relative fair value approach, and no indicators of impairment were identified. On June 1, 2023, Synovus acquired a 60% equity interest and a majority of the Board seats in Qualpay, which constituted a business combination. In connection with the acquisition, Synovus recorded $23.2 million of goodwill and $38.7 million of other intangible assets based on preliminary fair value estimates of the assets acquired and liabilities assumed in the transaction. Upon receipt of final fair value estimates during the measurement period, which must be within one year of the acquisition date, Synovus will record any adjustments to the preliminary fair value estimates in the reporting period in which the adjustments are determined. See Note 1 - Basis of Presentation and Accounting Policies for additional information on the Qualpay transaction. Goodwill allocated to each reporting unit at June 30, 2023 and December 31, 2022 is presented as follows:
(in thousands) | Wholesale Banking Reporting Unit |  | Community Banking Reporting Unit |  | Consumer Banking Reporting Unit |  |  |  | Wealth Management Reporting Unit |  | Total Goodwill
Balance at December 31, 2022 | $ | 171,636 |  |  | $ | 141,622 |  |  | $ | 114,701 |  |  |  |  | $ | 24,431 |  |  | $ | 452,390 |
Changes during the period from: |  |  |  |  |  |  |  |  |  |  |
Reallocation | 4,197 |  |  | — |  |  | — |  |  |  |  | (4,197) |  |  | — |
Acquisition | — |  |  | 23,183 |  |  | — |  |  |  |  | — |  |  | 23,183 |
Balance at June 30, 2023 | $ | 175,833 |  |  | $ | 164,805 |  |  | $ | 114,701 |  |  |  |  | $ | 20,234 |  |  | $ | 475,573 |
Goodwill is evaluated for impairment on an annual basis or whenever an event occurs or circumstances change to indicate that it is more likely than not that an impairment loss has been incurred (i.e., a triggering event). Synovus performs its annual evaluation of goodwill impairment during the fourth quarter of each year. During the second quarter of 2023, Synovus assessed the events and circumstances that have generated significant market trading volatility in the banking industry, particularly for regional banks like Synovus. Due to the uncertain environment as well as Synovus' stock price trading below book value during the month of May 2023, Synovus elected to perform a quantitative assessment of goodwill impairment as of May 31, 2023, which included determining the estimated fair value of each reporting unit containing goodwill, utilizing a combination of discounted cash flow and market-based approaches, and comparing that fair value to each reporting unit's carrying amount. The discounted cash flow method included updated internal forecasts, long-term profitability targets, growth rates, and discount rates. The market approach was based on a comparison of certain financial metrics of Synovus' reporting units to guideline public company peers. Based on the quantitative assessment performed, the fair value of each of these reporting units exceeded their respective carrying values; therefore, we concluded goodwill was not impaired as of our May 31, 2023 test date and determined that it was not more likely than not that the fair value had declined below carrying value at the reporting until level as of June 30, 2023. The following table shows the gross carrying amount and accumulated amortization of other intangible assets as of June 30, 2023 and December 31, 2022. The CDI is being amortized over its estimated useful life of approximately ten years utilizing an accelerated method. Other intangible assets resulting from the Qualpay acquisition, which primarily include client relationships, partner relationships, and developed technology, are being amortized on a straight-line basis over their estimated useful lives ranging from five to eight years. Aggregate other intangible assets amortization expense is included in other operating expense on the consolidated statements of income, and for the three and six months ended June 30, 2023 was $2.4 million and $4.3 million, respectively. Aggregate other intangible assets amortization expense for the three and six months ended June 30, 2022 was $2.1 million and $4.2 million, respectively.
(in thousands) | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Value
June 30, 2023 |  |  |  |  |
CDI | $ | 57,400 |  |  | $ | (38,615) |  |  | $ | 18,785 |
Client Relationships | 29,300 |  |  | (6,854) |  |  | 22,446 |
Partner Relationships | 6,900 |  |  | (115) |  |  | 6,785 |
Developed Technology | 11,091 |  |  | (185) |  |  | 10,906 |
Other | 3,900 |  |  | (1,284) |  |  | 2,616 |
Total other intangible assets | $ | 108,591 |  |  | $ | (47,053) |  |  | $ | 61,538 |
December 31, 2022 |  |  |  |  |
CDI | 57,400 |  |  | (35,484) |  |  | $ | 21,916 |
Client Relationships | 10,800 |  |  | (6,136) |  |  | 4,664 |
Other | 1,700 |  |  | (1,156) |  |  | 544 |
Total other intangible assets | $ | 69,900 |  |  | $ | (42,776) |  |  | $ | 27,124 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration