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Income Taxes
 12 Months Ended
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)202520242023
Current
Federal$160,941 $83,744 $107,445 
State35,656 22,387 29,739 
Total current income tax expense196,597 106,131 137,184 
Deferred
Federal35,443 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)202520242023
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 compensation4,379 0.4 2,965 0.5 3,575 0.5 
Misc non-deductible expenses2,213 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 allowance429 — 1,047 0.2 344 — 
Other adjustments
Surrender of BOLI policies12,901 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)20252024
Deferred tax assets
Net unrealized losses on investment securities available for sale and cash flow hedges$200,094 $302,128 
Allowance for credit losses128,700 131,373 
Lease liability96,004 111,089 
Employee benefits and deferred compensation49,986 47,642 
Net operating loss carryforwards31,998 32,511 
Tax credit carryforwards18,450 14,143 
Non-performing loan interest6,974 7,923 
Merger-related expenses6,568 — 
Unrealized losses on fair value hedges3,996 4,252 
Miscellaneous accrued expenses3,233 4,948 
FDIC special assessment1,335 9,087 
Fair value of investment securities and loans— 1 
Other4,233 8,167 
Total gross deferred tax assets551,571 673,264 
Less valuation allowance(27,776)(27,483)
Total deferred tax assets523,795 645,781 
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 CarryforwardsAs of December 31, 2025
(in thousands)Expiration DatesDeferred
Tax Asset, Before Valuation Allowance		Valuation AllowanceNet Deferred Tax Asset Balance
Net operating losses - federal(1)
2027-2037$25,017 $(21,086)$3,931 
Net operating losses - states(1)
2027-20456,981 (5,995)986 
Tax credits - federal 2034-2045552 (552)— 
Tax credits - states(1)
2026-203417,898 (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.
202520242023
Federal$89,500 $27,500 $43,500 
State and Local
Florida12,100 6,850 7,900 
Alabama4,027 3,100 3,910 
South Carolina18,641 137 113 
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)202520242023
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.