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Investment Securities | 9 Months Ended
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Sep. 30, 2024
Investments [Abstract] |
Investment Securities | Note 2 - Investment Securities The amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities at September 30, 2024 and December 31, 2023 are summarized below.
| September 30, 2024
(in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Investment securities held to maturity: |  |  |  |  |  |  |
Mortgage-backed securities issued by U.S. Government sponsored enterprises | $ | 2,622,457 |  |  | $ | 105,441 |  |  | $ | — |  |  | $ | 2,727,898 |
Total investment securities held to maturity(1) | $ | 2,622,457 |  |  | $ | 105,441 |  |  | $ | — |  |  | $ | 2,727,898 |
Investment securities available for sale: |  |  |  |  |  |  |
U.S. Treasury securities | $ | 1,182,732 |  |  | $ | 31,631 |  |  | $ | — |  |  | $ | 1,214,363 |
U.S. Government agency securities | 29,993 |  |  | — |  |  | (380) |  |  | 29,613 |
Mortgage-backed securities issued by U.S. Government agencies | 1,594,649 |  |  | 17,120 |  |  | (86,678) |  |  | 1,525,091 |
Mortgage-backed securities issued by U.S. Government sponsored enterprises | 2,242,750 |  |  | 5,290 |  |  | (178,671) |  |  | 2,069,369 |
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | 674,333 |  |  | 350 |  |  | (89,295) |  |  | 585,388 |
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises | 2,093,328 |  |  | 54,817 |  |  | (26,532) |  |  | 2,121,613 |
Corporate debt securities and other debt securities | 9,085 |  |  | — |  |  | (354) |  |  | 8,731 |
Total investment securities available for sale(2) | $ | 7,826,870 |  |  | $ | 109,208 |  |  | $ | (381,910) |  |  | $ | 7,554,168 |
| December 31, 2023
(in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Investment securities available for sale: |  |  |  |  |  |  |
U.S. Treasury securities | $ | 588,082 |  |  | $ | 9,547 |  |  | $ | — |  |  | $ | 597,629 |
U.S. Government agency securities | 29,993 |  |  | — |  |  | (1,053) |  |  | 28,940 |
Mortgage-backed securities issued by U.S. Government agencies | 1,021,612 |  |  | 2,037 |  |  | (97,985) |  |  | 925,664 |
Mortgage-backed securities issued by U.S. Government sponsored enterprises | 7,523,399 |  |  | 1,192 |  |  | (1,094,212) |  |  | 6,430,379 |
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | 692,487 |  |  | — |  |  | (104,892) |  |  | 587,595 |
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises | 1,226,672 |  |  | 18,764 |  |  | (35,653) |  |  | 1,209,783 |
Corporate debt securities and other debt securities | 9,009 |  |  | — |  |  | (337) |  |  | 8,672 |
Total investment securities available for sale(2) | $ | 11,091,254 |  |  | $ | 31,540 |  |  | $ | (1,334,132) |  |  | $ | 9,788,662 |
(1) The amounts reported exclude accrued interest receivable on investment securities HTM of $5.8 million at September 30, 2024, which is presented as a component of other assets on the consolidated balance sheets. The amortized cost basis of investment securities HTM includes a discount of $(668.1) million at September 30, 2024 related to the unamortized portion of unrealized losses on investment securities HTM. (2) The amounts reported exclude accrued interest receivable on investment securities AFS of $28.6 million and $26.6 million at September 30, 2024 and December 31, 2023, respectively, which is presented as a component of other assets on the consolidated balance sheets. At September 30, 2024, investment securities AFS and investment securities HTM with carrying values of $2.47 billion and $2.34 billion, respectively, were pledged to secure certain deposits and other liabilities, as required by law or contractual agreements. At December 31, 2023, investment securities AFS with a carrying value of $5.19 billion were pledged to secure certain deposits and other liabilities, as required by law or contractual agreements. On April 1, 2024, Synovus transferred $2.72 billion in fair value of mortgage-backed securities issued by U.S. Government sponsored enterprises from AFS to HTM. At the time of transfer, $537.4 million of unrealized losses, net of tax, were retained in accumulated other comprehensive income and will be amortized over the remaining life of the securities. The transfer of these securities from AFS to HTM reduces our exposure to potential AOCI volatility associated with investment security market price fluctuations. Additionally, during the second quarter of 2024, as part of an overall strategic repositioning of the investment securities portfolio, Synovus sold at amortized cost $1.62 billion of mortgage-backed securities issued by U.S. Government sponsored enterprises from AFS, which resulted in realized net losses of $256.7 million. Synovus also purchased $1.48 billion in total principal of AFS securities including U.S. Treasury securities, mortgage-backed securities issued by U.S. Government agencies, and commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises. Gross unrealized losses on investment securities AFS and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2024 and December 31, 2023 are presented below.
| September 30, 2024
| Less than 12 Months |  | 12 Months or Longer |  | Total
(in thousands) | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
U.S. Treasury securities | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
U.S. Government agency securities | — |  |  | — |  |  | 29,613 |  |  | (380) |  |  | 29,613 |  |  | (380) |
Mortgage-backed securities issued by U.S. Government agencies | 40,410 |  |  | (483) |  |  | 621,818 |  |  | (86,195) |  |  | 662,228 |  |  | (86,678) |
Mortgage-backed securities issued by U.S. Government sponsored enterprises | — |  |  | — |  |  | 1,655,295 |  |  | (178,671) |  |  | 1,655,295 |  |  | (178,671) |
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | — |  |  | — |  |  | 554,911 |  |  | (89,295) |  |  | 554,911 |  |  | (89,295) |
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises | — |  |  | — |  |  | 283,330 |  |  | (26,532) |  |  | 283,330 |  |  | (26,532) |
Corporate debt securities and other debt securities | — |  |  | — |  |  | 8,730 |  |  | (354) |  |  | 8,730 |  |  | (354) |
Total | $ | 40,410 |  |  | $ | (483) |  |  | $ | 3,153,697 |  |  | $ | (381,427) |  |  | $ | 3,194,107 |  |  | $ | (381,910) |
| December 31, 2023
| Less than 12 Months |  | 12 Months or Longer |  | Total
(in thousands) | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
U.S. Government agency securities | $ | — |  |  | $ | — |  |  | $ | 28,940 |  |  | $ | (1,053) |  |  | $ | 28,940 |  |  | $ | (1,053) |
Mortgage-backed securities issued by U.S. Government agencies | 159,402 |  |  | (1,268) |  |  | 565,358 |  |  | (96,717) |  |  | 724,760 |  |  | (97,985) |
Mortgage-backed securities issued by U.S. Government sponsored enterprises | 215,917 |  |  | (1,193) |  |  | 6,045,914 |  |  | (1,093,019) |  |  | 6,261,831 |  |  | (1,094,212) |
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | — |  |  | — |  |  | 587,595 |  |  | (104,892) |  |  | 587,595 |  |  | (104,892) |
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises | 34,406 |  |  | (205) |  |  | 276,675 |  |  | (35,448) |  |  | 311,081 |  |  | (35,653) |
Corporate debt securities and other debt securities | — |  |  | — |  |  | 8,672 |  |  | (337) |  |  | 8,672 |  |  | (337) |
Total | $ | 409,725 |  |  | $ | (2,666) |  |  | $ | 7,513,154 |  |  | $ | (1,331,466) |  |  | $ | 7,922,879 |  |  | $ | (1,334,132) |
As of September 30, 2024, Synovus had two investment securities AFS in a loss position for less than 12 months and 211 investment securities AFS in a loss position for 12 months or longer. As of September 30, 2024, Synovus does not intend to sell investment securities AFS in an unrealized loss position prior to the recovery of the unrealized loss, which may not be until maturity, and has the ability and intent to hold those securities for that period of time. Additionally, Synovus is not currently aware of any circumstances which will require it to sell any of the AFS securities that are in an unrealized loss position prior to the respective securities' recovery of all such unrealized losses. As such, no write-downs to the amortized cost basis of the portfolio were recorded at September 30, 2024. At September 30, 2024, no ACL was established for investment securities AFS. Substantially all of the unrealized losses on the securities portfolio were the result of changes in market interest rates compared to the date the securities were acquired rather than the credit quality of the issuers or underlying loans. U.S. Treasury and agency securities and agency mortgage-backed securities are issued, guaranteed or otherwise supported by the United States government, an agency of the United States government, or a government sponsored enterprise. As of September 30, 2024, all investment securities HTM were rated investment grade or supported by U.S. government agencies and have no history of credit losses supporting the application of a zero-credit loss assumption and no allowance for credit losses. The amortized cost and fair value by contractual maturity of investment securities HTM and investment securities AFS at September 30, 2024 are shown below. The expected life of MBSs or CMOs may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. For purposes of the maturity table, MBSs and CMOs, which are not due at a single maturity date, have been classified based on the final contractual maturity date.
(in thousands) | Within One Year |  | 1 to 5 Years |  | 5 to 10 Years |  | More Than 10 Years |  | Total
Investment securities HTM |  |  |  |  |  |  |  |  |
Mortgage-backed securities issued by U.S. Government sponsored enterprises |  |  |  |  |  |  |  |  |
Amortized cost | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,622,457 |  |  | $ | 2,622,457 |
Fair value | — |  |  | — |  |  | — |  |  | 2,727,898 |  |  | 2,727,898 |
Investment securities AFS |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  |  |  |  |  |  |  |  |
Amortized cost | $ | 22,741 |  |  | $ | 774,204 |  |  | $ | 385,787 |  |  | $ | — |  |  | $ | 1,182,732 |
Fair value | 22,741 |  |  | 792,477 |  |  | 399,145 |  |  | — |  |  | 1,214,363 |
U.S. Government agency securities |  |  |  |  |  |  |  |  |
Amortized cost | — |  |  | 29,993 |  |  | — |  |  | — |  |  | 29,993 |
Fair value | — |  |  | 29,613 |  |  | — |  |  | — |  |  | 29,613 |
Mortgage-backed securities issued by U.S. Government agencies |  |  |  |  |  |  |  |  |
Amortized cost | — |  |  | 50 |  |  | 3 |  |  | 1,594,596 |  |  | 1,594,649 |
Fair value | — |  |  | 49 |  |  | 3 |  |  | 1,525,039 |  |  | 1,525,091 |
Mortgage-backed securities issued by U.S. Government sponsored enterprises |  |  |  |  |  |  |  |  |
Amortized cost | — |  |  | — |  |  | — |  |  | 2,242,750 |  |  | 2,242,750 |
Fair value | — |  |  | — |  |  | — |  |  | 2,069,369 |  |  | 2,069,369 |
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises |  |  |  |  |  |  |  |  |
Amortized cost | — |  |  | 27 |  |  | 8,890 |  |  | 665,416 |  |  | 674,333 |
Fair value | — |  |  | 27 |  |  | 8,762 |  |  | 576,599 |  |  | 585,388 |
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises |  |  |  |  |  |  |  |  |
Amortized cost | — |  |  | 1,065,288 |  |  | 1,010,913 |  |  | 17,127 |  |  | 2,093,328 |
Fair value | — |  |  | 1,080,132 |  |  | 1,026,335 |  |  | 15,146 |  |  | 2,121,613 |
Corporate debt securities and other debt securities |  |  |  |  |  |  |  |  |
Amortized cost | — |  |  | 9,085 |  |  | — |  |  | — |  |  | 9,085 |
Fair value | — |  |  | 8,731 |  |  | — |  |  | — |  |  | 8,731 |
Gross gains and gross losses on sales of investment securities AFS for the three and nine months ended September 30, 2024 and 2023 are presented below. The specific identification method is used to reclassify gains and losses out of other comprehensive income (loss) at the time of sale.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2024 |  | 2023 |  | 2024 |  | 2023
Gross realized gains on sales | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,030 |
Gross realized losses on sales | — |  |  | — |  |  | (256,660) |  |  | — |
Investment securities gains (losses), net | $ | — |  |  | $ | — |  |  | $ | (256,660) |  |  | $ | 1,030 |

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