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Income Taxes | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | Note 16 - Income Taxes The components of income tax expense (benefit) included on the consolidated statements of income for the years ended December 31, 2025, 2024, and 2023 are presented below:
(in thousands) | 2025 |  | 2024 |  | 2023
Current |  |  |  |  |
Federal | $ | 160,941 |  |  | $ | 83,744 |  |  | $ | 107,445 |
State | 35,656 |  |  | 22,387 |  |  | 29,739 |
Total current income tax expense | 196,597 |  |  | 106,131 |  |  | 137,184 |
Deferred |  |  |  |  |
Federal | 35,443 |  |  | 19,292 |  |  | 13,124 |
State | (3,552) |  |  | 79 |  |  | 3,713 |
Total deferred income tax expense (benefit) | 31,891 |  |  | 19,371 |  |  | 16,837 |
Total income tax expense | $ | 228,488 |  |  | $ | 125,502 |  |  | $ | 154,021 |
Income tax expense as shown on the consolidated statements of income differed from the federal statutory rate for the years ended December 31, 2025, 2024, and 2023. A reconciliation of the differences is presented below:
| Years Ended December 31,
(dollars in thousands) | 2025 |  | 2024 |  | 2023
Income tax expense at statutory federal income tax rate | $ | 213,923 |  |  | 21.0 | % |  | $ | 127,040 |  | 21.0 | % |  | $ | 146,194 |  | 21.0 | %
State income tax expense, net of federal income tax benefit(1) | 19,636 |  |  | 1.9 |  |  | 17,050 |  | 2.8 |  |  | 25,308 |  | 3.6 |
Tax credit investment benefits, net of amortization (as applicable) |  |  |  |  |  |  |  |  |
Low Income Housing | (15,621) |  |  | (1.5) |  |  | (16,640) |  | (2.8) |  |  | (13,193) |  | (1.9) |
Other | (3,418) |  |  | (0.3) |  |  | (4,689) |  | (0.8) |  |  | (7,841) |  | (1.1) |
Nontaxable or Nondeductible Items |  |  |  |  |  |  |  |  |
Income not subject to tax | (13,540) |  |  | (1.3) |  |  | (11,857) |  | (2.0) |  |  | (10,477) |  | (1.5) |
FDIC premiums | 6,209 |  |  | 0.6 |  |  | 7,684 |  | 1.3 |  |  | 8,589 |  | 1.2 |
Executive compensation | 4,379 |  |  | 0.4 |  |  | 2,965 |  | 0.5 |  |  | 3,575 |  | 0.5 |
Misc non-deductible expenses | 2,213 |  |  | 0.2 |  |  | 1,916 |  | 0.3 |  |  | 1,586 |  | 0.2 |
Changes in unrecognized tax benefits(2) | 4,793 |  |  | 0.5 |  |  | 317 |  | 0.1 |  |  | 1,227 |  | 0.2 |
Change in valuation allowance | 429 |  |  | — |  |  | 1,047 |  | 0.2 |  |  | 344 |  | — |
Other adjustments |  |  |  |  |  |  |  |  |
Surrender of BOLI policies | 12,901 |  |  | 1.3 |  |  | — |  | — |  |  | — |  | — |
Other items, net | (3,416) |  |  | (0.4) |  |  | 669 |  | 0.1 |  |  | (1,291) |  | (0.1) |
Total income tax expense and effective tax rate | $ | 228,488 |  |  | 22.4 | % |  | $ | 125,502 |  | 20.7 | % |  | $ | 154,021 |  | 22.1 | %
(1) For 2025, state and local taxes in Florida and New York City made up the majority (greater than 50%) of the tax effect in this category. For 2024, state taxes in Alabama, Florida, and New York State made up the majority of the tax effect in this category. For 2023, state taxes in Georgia made up the majority of the tax effect in this category. (2) Includes the impact of state unrecognized tax benefit items. The state effect of all other line items is included within state income tax expense. The components of the Company's deferred tax assets and liabilities at December 31, 2025 and 2024 are presented below:
(in thousands) | 2025 |  | 2024 |
Deferred tax assets |  |  |  |
Net unrealized losses on investment securities available for sale and cash flow hedges | $ | 200,094 |  |  | $ | 302,128 |  |
Allowance for credit losses | 128,700 |  |  | 131,373 |  |
Lease liability | 96,004 |  |  | 111,089 |  |
Employee benefits and deferred compensation | 49,986 |  |  | 47,642 |  |
Net operating loss carryforwards | 31,998 |  |  | 32,511 |  |
Tax credit carryforwards | 18,450 |  |  | 14,143 |  |
Non-performing loan interest | 6,974 |  |  | 7,923 |  |
Merger-related expenses | 6,568 |  |  | — |  |
Unrealized losses on fair value hedges | 3,996 |  |  | 4,252 |  |
Miscellaneous accrued expenses | 3,233 |  |  | 4,948 |  |
FDIC special assessment | 1,335 |  |  | 9,087 |  |
Fair value of investment securities and loans | — |  |  | 1 |  |
Other | 4,233 |  |  | 8,167 |  |
Total gross deferred tax assets | 551,571 |  |  | 673,264 |  |
Less valuation allowance | (27,776) |  |  | (27,483) |  |
Total deferred tax assets | 523,795 |  |  | 645,781 |  |
Deferred tax liabilities |  |  |  |
Right-of-use asset | (88,727) |  |  | (104,190) |  |
Purchase accounting intangibles | (21,649) |  |  | (22,535) |  |
Deferred loan costs | (16,281) |  |  | (16,293) |  |
Surrender of BOLI policies | (14,227) |  |  | — |  |
Excess tax over financial statement depreciation | (13,762) |  |  | (13,685) |  |
Unrealized gain on hedged liabilities | (11,013) |  |  | (4,252) |  |
Prepaid expense | (7,796) |  |  | (5,498) |  |
Partnership investments | (2,304) |  |  | (2,995) |  |
Other properties held for sale | (205) |  |  | (914) |  |
Other | (6,153) |  |  | (4,899) |  |
Total gross deferred tax liabilities | (182,117) |  |  | (175,261) |  |
Net deferred tax asset | $ | 341,678 |  |  | $ | 470,520 |  |
Synovus believes the realization of net deferred tax assets (after valuation allowance) at December 31, 2025 is more likely than not based on its history of cumulative profitability as well as expectations of future taxable income, including reversals of taxable temporary differences, in the jurisdictions in which it operates. Synovus expects that a portion of its $32.0 million of federal and state NOLs as well as a portion of the $18.5 million of federal and state tax credit carryforwards, which have carryforward periods ending in tax years 2026 through 2045, will not be realized before their carryforward period lapses and the Company has accordingly established a valuation allowance in the amount of $27.8 million at December 31, 2025. Federal and state NOLs and tax credit carryforwards as of December 31, 2025 are summarized in the following table on a tax effected basis.
Tax Carryforwards | As of December 31, 2025
(in thousands) | Expiration Dates |  | Deferred Tax Asset, Before Valuation Allowance |  | Valuation Allowance |  | Net Deferred Tax Asset Balance
Net operating losses - federal(1) | 2027-2037 |  | $ | 25,017 |  |  | $ | (21,086) |  |  | $ | 3,931 |
Net operating losses - states(1) | 2027-2045 |  | 6,981 |  |  | (5,995) |  |  | 986 |
Tax credits - federal | 2034-2045 |  | 552 |  |  | (552) |  |  | — |
Tax credits - states(1) | 2026-2034 |  | 17,898 |  |  | (143) |  |  | 17,755 |
(1) Included in this balance are tax attributes that can be carried forward indefinitely and have no expiration date. Synovus is subject to income taxation in the U.S. and various state and local taxing jurisdictions. Synovus is no longer subject to income tax examinations by the IRS for years before 2022 and by state and local income tax authorities for years before 2021. Income taxes paid in 2025 for each material jurisdiction are presented in the table below.
| 2025 |  | 2024 |  | 2023
Federal | $ | 89,500 |  |  | $ | 27,500 |  |  | $ | 43,500 |
State and Local |  |  |  |  |
Florida | 12,100 |  |  | 6,850 |  |  | 7,900 |
Alabama | 4,027 |  |  | 3,100 |  |  | 3,910 |
South Carolina | 18,641 |  |  | 137 |  |  | 113 |
All Other States | 20,186 |  |  | 9,681 |  |  | 14,330 |
Total | $ | 144,454 |  |  | $ | 47,268 |  |  | $ | 69,753 |
A reconciliation of the beginning and ending amount of unrecognized income tax benefits is as follows (unrecognized state income tax benefits are not adjusted for the federal income tax impact).
| Years Ended December 31,
(in thousands) | 2025 |  | 2024 |  | 2023
Balance at January 1, | $ | 21,680 |  |  | $ | 22,312 |  |  | $ | 22,400 |
Additions based on income tax positions related to current year | 1,177 |  |  | 520 |  |  | 719 |
Additions for income tax positions of prior years(1) | 6,057 |  |  | 39 |  |  | 186 |
Reductions for income tax positions of prior years | (1,841) |  |  | (209) |  |  | (122) |
Reductions for statute of limitation expirations | (641) |  |  | (982) |  |  | (871) |
Reductions for settlements on audit | (18,736) |  |  | — |  |  | — |
Balance at December 31, | $ | 7,696 |  |  | $ | 21,680 |  |  | $ | 22,312 |
(1) Includes deferred tax benefits that could reduce future tax liabilities. Accrued interest and penalties related to unrecognized income tax benefits are recognized as a component of income tax expense, and totaled $3.7 million, $5.7 million, and $4.8 million as of December 31, 2025, 2024, and 2023, respectively. Unrecognized income tax benefits as of December 31, 2025, 2024, and 2023 that, if recognized, would affect the effective income tax rate totaled $9.7 million, $22.9 million and $22.5 million (net of the federal benefit on state income tax issues), respectively.

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