Diluted Earnings per Share of $1.21 vs. $0.56 in 3Q20

Adjusted Diluted Earnings per Share of $1.20 vs. $0.89 in 3Q20

Synovus Financial Corp. (NYSE:SNV) today reported financial results for the quarter ended September 30, 2021.

Third Quarter 2021 Highlights

Net income available to common shareholders of $178.5 million or $1.21 per diluted share, up $0.02 sequentially and up $0.65 compared to prior year.
- Adjusted diluted EPS of $1.20, unchanged sequentially and up $0.31 compared to prior year.
Period-end loans increased $105.0 million sequentially, or $922.7 million excluding Paycheck Protection program (PPP) loans.
- PPP loans declined $817.7 million sequentially.
Core transaction deposits (non-interest bearing, NOW/savings, and money market deposits excluding public and brokered funds) increased $1.03 billion or 3% sequentially.
Total deposit costs of 0.13% down 3 bps sequentially due to ongoing repricing and product remixing.
Net interest income of $384.9 million increased $3.1 million sequentially as asset growth, reduced deposit costs, and a higher day count more than offset continued fixed-rate repricing and the slight reduction in LIBOR.
- Net interest margin of 3.01%, down 1 bp sequentially.
Non-interest revenue increased $7.9 million as broad-based growth helped to offset continued normalization of net mortgage revenue.
- Adjusted non-interest revenue increased $8.1 million.
Non-interest expense decreased $3.5 million sequentially as reductions in third-party processing and other services offset increases in other areas such as net occupancy, equipment, and software expense.
- Adjusted non-interest expense decreased $1.2 million sequentially.
Pre-provision net revenue of $232.8 million increased $14.4 million sequentially as total revenue increased $10.9 million and non-interest expense decreased $3.5 million.
Reversal of provision for credit losses of $7.9 million, primarily from a more favorable economic outlook.
- Allowance for credit losses coverage ratio (to loans) of 1.40%, or 1.42% excluding PPP loans.
Credit quality metrics remain relatively stable, near historical lows. The net charge-off ratio declined 6 bps from prior quarter to 0.22%; the non-performing loan and asset ratios each fell 1 bp to 0.41% and 0.45%, respectively; and criticized and classified loans declined 22%.
Preliminary CET1 ratio declined 12 bps sequentially to 9.63%, with strong core earnings helping offset the decline from deploying capital for balance sheet growth and returning capital to shareholders.
- Includes $74.6 million in share repurchases at an average price of $42.00.
Achieved pre-tax run rate benefit of approximately $100 million at the end of the quarter from a combination of revenue and expense initiatives under Synovus Forward, which is designed to make Synovus a more efficient, profitable, and nimble organization.
- On track to achieve an aggregate $175 million pre-tax run rate benefit by the end of 2022.

Third Quarter Summary

	Reported									Adjusted
(dollars in thousands)	3Q21			2Q21			3Q20			3Q21			2Q21			3Q20
Net income available to common shareholders	$	178,482		$	177,909		$	83,283		$	177,760		$	178,969		$	131,364
Diluted earnings per share	1.21			1.19			0.56			1.20			1.20			0.89
Total loans	38,341,030			38,236,018			39,549,847				N/A			N/A			N/A
Total deposits	47,688,419			47,171,962			44,665,904				N/A			N/A			N/A
Total TE⁽¹⁾ revenue	500,608			489,738			492,357			499,743			488,612			492,851
Return on avg assets	1.34		%	1.36		%	0.69		%	1.33		%	1.37		%	1.05		%
Return on avg common equity	14.96			15.40			7.28			14.90			15.50			11.48
Return on avg tangible common equity	16.85			17.41			8.46			16.79			17.52			13.24
Net interest margin	3.01			3.02			3.10				N/A			N/A			N/A
Efficiency ratio-TE⁽¹⁾	53.34			55.24			64.31			52.96			54.41			53.83
NCO ratio	0.22			0.28			0.29				N/A			N/A			N/A
NPA ratio	0.45			0.46			0.49				N/A			N/A			N/A
⁽¹⁾Taxable equivalent

"Our third quarter story was shaped by an intense focus on growth, and we are pleased with the results," said Kevin Blair, Synovus president and CEO. "Loans, excluding PPP, grew $923 million, core transaction deposits were up $1.0 billion, and pre-provision net revenue increased 7 percent versus the second quarter. Our ongoing Synovus Forward initiatives reached a pre-tax run rate benefit of $100 million by quarter end and we are executing on an additional $75 million of benefits to be delivered by the end of 2022. Synovus Forward represents our ongoing innovation and profitable growth mindset, guiding our efforts to deliver sustainable, top quartile financial performance and enabling us to invest in areas with long-term benefit. With these strategic investments, combined with the momentum we are experiencing in our core businesses, our team is confident in our ability to continue to deliver as we build the bank of the future."

Balance Sheet

Loans^*

(dollars in millions)	3Q21		2Q21		Linked Quarter Change			Linked Quarter % Change		3Q20		Year/Year Change			Year/Year % Change
Commercial & industrial	$	18,934.8	$	19,150.1	$	(215.3	)	(1	)%	$	20,123.6	$	(1,188.9	)	(6	)%
Commercial real estate	10,540.3		10,361.1		179.2			2		10,736.1		(195.8		)	(2	)
Consumer	8,866.0		8,724.8		141.1			2		8,690.1		175.8			2
Total loans	$	38,341.0	$	38,236.0	$	105.0		—	%	$	39,549.8	$	(1,208.9	)	(3	)%
^*Amounts may not total due to rounding

Total loans ended the quarter at $38.34 billion, up $105.0 million sequentially, or $922.7 million excluding PPP loans.
Commercial and industrial (C&I) loans declined $215.3 million sequentially, led by a decline in PPP loan balances of $817.7 million.
- C&I loan growth of $602.3 million excluding PPP balance changes despite line utilization remaining near historic lows at 39%.
CRE loans increased $179.2 million, primarily in the income-producing real estate portfolio.
Consumer loans increased $141.1 million sequentially, with growth of $266.5 million in third-party consumer lending offsetting declines in consumer mortgages and HELOCs of $92.3 million and $50.0 million, respectively.

Deposits^*

(dollars in millions)	3Q21		2Q21		Linked Quarter Change			Linked Quarter % Change		3Q20		Year/Year Change			Year/Year % Change
Non-interest-bearing DDA	$	14,832.9	$	14,342.6	$	490.3		3	%	$	12,129.8	$	2,703.2		22	%
Interest-bearing DDA	6,056.0		5,839.8		216.2			4		5,291.1		764.8			14
Money market	14,267.4		13,983.1		284.3			2		12,441.3		1,826.1			15
Savings	1,380.4		1,341.5		39.0			3		1,126.0		254.4			23
Public funds	5,791.6		5,804.9		(13.3		)	—		5,791.9		(0.4		)	—
Time deposits	2,579.3		2,891.1		(311.8		)	(11	)	3,976.5		(1,397.1		)	(35	)
Brokered deposits	2,780.7		2,969.0		(188.3		)	(6	)	3,909.3		(1,128.6		)	(29	)
Total deposits	$	47,688.4	$	47,172.0	$	516.5		1	%	$	44,665.9	$	3,022.5		7	%
^*Amounts may not total due to rounding

Total deposits ended the quarter at $47.69 billion, up $516.5 million sequentially.
Core transaction deposits increased $1.03 billion or 3% sequentially.
- Broad-based growth in DDA, NOW, MMA, and savings accounts supported strategic declines in higher cost deposits.
Total deposit costs declined 3 bps sequentially to 0.13%.

Income Statement Summary^**

(in thousands, except per share data)	3Q21			2Q21			Linked Quarter Change			Linked Quarter % Change		3Q20		Year/Year Change			Year/Year % Change
Net interest income	$	384,917		$	381,860		$	3,057		1	%	$	376,990	$	7,927		2	%
Non-interest revenue	114,955			107,087			7,868			7		114,411		544			—
Non-interest expense	267,032			270,531			(3,499		)	(1	)	316,655		(49,623		)	(16	)
(Reversal of) provision for credit losses	(7,868		)	(24,598		)	16,730			68		43,383		(51,251		)	nm
Income before taxes	$	240,708		$	243,014		$	(2,306	)	(1	)%	$	131,363	$	109,345		83	%
Income tax expense	53,935			56,814			(2,879		)	(5	)	39,789		14,146			36
Preferred stock dividends	8,291			8,291			—			—		8,291		—			—
Net income available to common shareholders	$	178,482		$	177,909		$	573		—	%	$	83,283	$	95,199		114	%
Weighted average common shares outstanding, diluted	147,701			149,747			(2,046		)	(1	)%	147,976		(275		)	—	%
Diluted earnings per share	$	1.21		$	1.19		$	0.02		2		$	0.56	$	0.65		116
Adjusted diluted earnings per share	1.20			1.20			—			—		0.89		0.31			35
^**Amounts may not total due to rounding

Core Performance

Net interest income of $384.9 million increased $3.1 million sequentially as asset growth and reduced deposit costs more than offset continued fixed-rate repricing and the slight reduction in LIBOR.
- Net PPP fee accretion of $21.3 million, up $0.9 million sequentially.
- Net interest margin was 3.01%, down 1 bp sequentially.
Non-interest revenue increased $7.9 million, or 7% sequentially. Adjusted non-interest revenue increased $8.1 million, or 8% sequentially, and decreased $0.8 million, or 1% compared to prior year.
- Broad-based growth including $4.8 million in capital markets income helped offset normalization of net mortgage revenue, which declined $2.7 million sequentially.
Non-interest expense decreased $3.5 million, or 1% sequentially. Adjusted non-interest expense decreased $1.2 million sequentially.
- Declines in third-party processing and other services of $5.0 million offset an increase in additional project spend that contributed to the $1.7 million increase in net occupancy, equipment, and software expense.
Pre-provision net revenue of $232.8 million increased $14.4 million sequentially as total revenue increased $10.9 million and non-interest expense decreased $3.5 million.
Reversal of provision for credit losses of $7.9 million from the provision expense associated with strong loan growth being more than offset by a reduction in life of loan loss estimates; allowance for credit losses coverage ratio (to loans) of 1.40%, or 1.42% excluding PPP loans.
Tax expense was $53.9 million, a decrease of $2.9 million sequentially due to lower taxable income and favorable changes in discrete items.
- Year-to-date effective tax rate of 22.21%.

Capital Ratios

	3Q21			2Q21		3Q20
Common equity Tier 1 capital (CET1) ratio	9.63	%	^*	9.75	%	9.30	%
Tier 1 capital ratio	10.83		^*	11.00		10.57
Total risk-based capital ratio	12.96		^*	13.25		13.16
Tier 1 leverage ratio	8.82		^*	8.72		8.48
Tangible common equity ratio	7.68			7.73		7.67
* Ratios are preliminary.

Capital

Preliminary CET1 ratio declined 12 bps during the quarter to 9.63% as strong core performance helped offset the impact of asset growth and $74.6 million in share repurchases at an average price of $42.00.
Total risk-based capital ratio of 12.96% declined 29 bps from the prior quarter following a reduction in the Allowance for Credit Losses.

Third Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on October 19, 2021. The earnings call will be accompanied by a slide presentation. Shareholders and other interested parties may listen to this conference call via simultaneous Internet broadcast. For a link to the webcast, go to investor.synovus.com/event. The replay will be archived for 12 months and will be available 30-45 minutes after the call.

Synovus Financial Corp. is a financial services company based in Columbus, Georgia, with approximately $56 billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services through 283 branches in Alabama, Florida, Georgia, South Carolina, and Tennessee. Synovus Bank, a wholly owned subsidiary of Synovus, has been recognized as one of the country's "Most Reputable Banks" by American Banker and the Reputation Institute. Synovus is on the web at synovus.com, and on Twitter, Facebook, LinkedIn, and Instagram.

Forward-Looking Statements

This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements through Synovus' use of words such as "believes," "anticipates," "expects," "may," "will," "assumes," "should," "predicts," "could," "would," "intends," "targets," "estimates," "projects," "plans," "potential" and other similar words and expressions of the future or otherwise regarding the outlook for Synovus' future business and financial performance and/or the performance of the banking industry and economy in general. These forward-looking statements include, among others, our expectations regarding our future operating and financial performance; expectations on our growth strategy, expense and revenue initiatives, capital management, balance sheet management, and future profitability; expectations on credit quality and performance; and the assumptions underlying our expectations. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Synovus to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, Synovus' management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements in this press release. Many of these factors are beyond Synovus' ability to control or predict.

These forward-looking statements are based upon information presently known to Synovus' management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in Synovus' filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2020, under the captions "Cautionary Notice Regarding Forward-Looking Statements" and "Risk Factors" and in Synovus' quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as otherwise may be required by law.

Non-GAAP Financial Measures

The measures entitled adjusted non-interest revenue; adjusted non-interest expense; total adjusted revenue; adjusted tangible efficiency ratio; pre-provision net revenue; adjusted net income available to common shareholders; adjusted diluted earnings per share; adjusted return on average assets; adjusted return on average common equity; return on average tangible common equity; adjusted return on average tangible common equity; and tangible common equity ratio are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are total non-interest revenue; total non-interest expense; total TE revenue; efficiency ratio-TE; income before income taxes; net income available to common shareholders; diluted earnings per share; return on average assets; return on average common equity; and the ratio of total shareholders' equity to total assets, respectively.

Management believes that these non-GAAP financial measures provide meaningful additional information about Synovus to assist management and investors in evaluating Synovus' operating results, financial strength, the performance of its business, and the strength of its capital position. However, these non-GAAP financial measures have inherent limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of operating results or capital position as reported under GAAP. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant items and other factors, and since they are not required to be uniformly applied, they may not be comparable to other similarly titled measures at other companies. Total adjusted revenue and adjusted non-interest revenue are measures used by management to evaluate total TE revenue and non-interest revenue exclusive of net investment securities gains (losses), gain on sale and changes in the fair value of private equity investments, net, and fair value adjustment on non-qualified deferred compensation. Adjusted non-interest expense and the adjusted tangible efficiency ratio are measures utilized by management to measure the success of expense management initiatives focused on reducing recurring controllable operating costs. Pre-provision net revenue is used by management to evaluate income before income taxes exclusive of (reversal of) provision for credit losses. Adjusted net income available to common shareholders, adjusted diluted earnings per share, adjusted return on average assets, and adjusted return on average common equity are measures used by management to evaluate operating results exclusive of items that are not indicative of ongoing operations and impact period-to-period comparisons. Return on average tangible common equity and adjusted return on average tangible common equity are measures used by management to compare Synovus' performance with other financial institutions because it calculates the return available to common shareholders without the impact of intangible assets and their related amortization, thereby allowing management to evaluate the performance of the business consistently. The tangible common equity ratio is used by management to assess the strength of our capital position. The computations of these measures are set forth in the tables below.

Reconciliation of Non-GAAP Financial Measures

(dollars in thousands)	3Q21			2Q21			3Q20
Adjusted non-interest revenue
Total non-interest revenue	$	114,955		$	107,087		$	114,411
Subtract/add: Investment securities (gains) losses, net	(962		)	—			1,550
Subtract: Fair value increase of private equity investments	—			—			(260		)
Add/subtract: Fair value adjustment on non-qualified deferred compensation	97			(1,126		)	(796		)
Adjusted non-interest revenue	$	114,090		$	105,961		$	114,905

Adjusted non-interest expense
Total non-interest expense	$	267,032		$	270,531		$	316,655
Add/subtract: Earnout liability adjustment	243			(750		)	—
Subtract: Goodwill impairment	—			—			(44,877		)
Subtract: Restructuring charges	(319		)	(415		)	(2,882		)
Subtract: Loss on early extinguishment of debt, net	—			—			(154		)
Add/subtract: Fair value adjustment on non-qualified deferred compensation	97			(1,126		)	(796		)
Adjusted non-interest expense	$	267,053		$	268,240		$	267,946

Reconciliation of Non-GAAP Financial Measures, continued

(dollars in thousands)	3Q21			2Q21			3Q20
Total adjusted revenue and adjusted tangible efficiency ratio
Adjusted non-interest expense	$	267,053		$	268,240		$	267,946
Subtract: Amortization of intangibles	(2,379		)	(2,379		)	(2,640		)
Adjusted tangible non-interest expense	$	264,674		$	265,861		$	265,306

Net interest income	$	384,917		$	381,860		$	376,990
Add: Tax equivalent adjustment	736			791			956
Add: Total non-interest revenue	114,955			107,087			114,411
Total TE revenue	500,608			489,738			492,357
Subtract/add: Investment securities (gains) losses, net	(962		)	—			1,550
Subtract: Fair value increase of private equity investments	—			—			(260		)
Add/subtract: Fair value adjustment on non-qualified deferred compensation	97			(1,126		)	(796		)
Total adjusted revenue	$	499,743		$	488,612		$	492,851
Efficiency ratio-TE	53.34		%	55.24		%	64.31		%
Adjusted tangible efficiency ratio	52.96			54.41			53.83

Pre-provision net revenue
Net interest income	$	384,917	$	381,860	$	376,990
Add: Total non-interest revenue	114,955		107,087		114,411
Subtract: Total non-interest expense	267,032		270,531		316,655
Pre-provision net revenue	$	232,840	$	218,416	$	174,746

Adjusted return on average assets
Net income	$	186,773		$	186,200		$	91,574
Subtract/add: Earnout liability adjustment	(243		)	750			—
Add: Goodwill impairment	—			—			44,877
Add: Restructuring charges	319			415			2,882
Add: Loss on early extinguishment of debt, net	—			—			154
Subtract/add: Investment securities (gains) losses, net	(962		)	—			1,550
Subtract: Fair value increase of private equity investments	—			—			(260		)
Add/subtract: Tax effect of adjustments ⁽¹⁾	164			(105		)	(1,122		)
Adjusted net income	$	186,051		$	187,260		$	139,655
Net income annualized	$	741,002		$	746,846		$	364,305
Adjusted net income annualized	$	738,137		$	751,098		$	555,584
Total average assets	$	55,326,260		$	55,017,771		$	53,138,334
Return on average assets	1.34		%	1.36		%	0.69		%
Adjusted return on average assets	1.33			1.37			1.05


Adjusted net income available to common shareholders and adjusted diluted earnings per share
Net income available to common shareholders	$	178,482		$	177,909		$	83,283
Subtract/add: Earnout liability adjustment	(243		)	750			—
Add: Goodwill Impairment	—			—			44,877
Add: Restructuring charges	319			415			2,882
Add: Loss on early extinguishment of debt, net	—			—			154
Subtract/add: Investment securities (gains) losses, net	(962		)	—			1,550
Subtract: Fair value increase of private equity investments	—			—			(260		)
Add/subtract: Tax effect of adjustments ⁽¹⁾	164			(105		)	(1,122		)
Adjusted net income available to common shareholders	$	177,760		$	178,969		$	131,364
Weighted average common shares outstanding, diluted	147,701			149,747			147,976
Diluted earnings per share	$	1.21		$	1.19		$	0.56
Adjusted diluted earnings per share	1.20			1.20			0.89

Reconciliation of Non-GAAP Financial Measures, continued

(dollars in thousands)	3Q21			2Q21			3Q20

Adjusted return on average common equity, return on average tangible common equity, and adjusted return on average tangible common equity
Net income available to common shareholders	$	178,482		$	177,909		$	83,283
Subtract/add: Earnout liability adjustment	(243		)	750			—
Add: Goodwill impairment	—			—			44,877
Add: Restructuring charges	319			415			2,882
Add: Loss on early extinguishment of debt, net	—			—			154
Subtract/add: Investment securities (gains) losses, net	(962		)	—			1,550
Subtract: Fair value increase of private equity investments	—			—			(260		)
Add/subtract: Tax effect of adjustments ⁽¹⁾	164			(105		)	(1,122		)
Adjusted net income available to common shareholders	$	177,760		$	178,969		$	131,364

Adjusted net income available to common shareholders annualized	$	705,243		$	717,843		$	522,600
Add: Amortization of intangibles, annualized net of tax	7,050			7,128			7,782
Adjusted net income available to common shareholders excluding amortization of intangibles annualized	$	712,293		$	724,971		$	530,382

Net income available to common shareholders annualized	$	708,108		$	713,591		$	331,322
Add: Amortization of intangibles, annualized net of tax	7,050			7,128			7,782
Net income available to common shareholders excluding amortization of intangibles annualized	$	715,158		$	720,719		$	339,104

Total average shareholders' equity less preferred stock	$	4,734,754		$	4,632,568		$	4,553,159
Subtract: Goodwill	(452,390		)	(452,390		)	(497,267		)
Subtract: Other intangible assets, net	(39,109		)	(41,399		)	(49,075		)
Total average tangible shareholders' equity less preferred stock	$	4,243,255		$	4,138,779		$	4,006,817
Return on average common equity	14.96		%	15.40		%	7.28		%
Adjusted return on average common equity	14.90			15.50			11.48
Return on average tangible common equity	16.85			17.41			8.46
Adjusted return on average tangible common equity	16.79			17.52			13.24

Reconciliation of Non-GAAP Financial Measures, continued

(dollars in thousands)	September 30, 2021			June 30, 2021			September 30, 2020

Tangible common equity ratio
Total assets	$	55,509,129		$	54,938,659		$	53,040,538
Subtract: Goodwill	(452,390		)	(452,390		)	(452,390		)
Subtract: Other intangible assets, net	(37,975		)	(40,354		)	(47,752		)
Tangible assets	$	55,018,764		$	54,445,915		$	52,540,396

Total shareholders' equity	$	5,252,802		$	5,237,714		$	5,064,542
Subtract: Goodwill	(452,390		)	(452,390		)	(452,390		)
Subtract: Other intangible assets, net	(37,975		)	(40,354		)	(47,752		)
Subtract: Preferred Stock, no par value	(537,145		)	(537,145		)	(537,145		)
Tangible common equity	$	4,225,292		$	4,207,825		$	4,027,255
Total shareholders' equity to total assets ratio	9.46		%	9.53		%	9.55		%
Tangible common equity ratio	7.68			7.73			7.67

⁽¹⁾ An assumed marginal tax rate of 25.3% for 2021 and 25.9% for 2020 was applied.

INCOME STATEMENT DATA
(Unaudited)

(Dollars in thousands, except per share data)	Nine Months Ended
	2021			2020			'21 vs '20
	2021			2020			% Change

Interest income	$	1,235,064		$	1,371,016		(10	)%
Interest expense	94,430			244,200			(61	)

Net interest income	1,140,634			1,126,816			1
(Reversal of) provision for credit losses	(51,041		)	343,956			nm

Net interest income after provision for credit losses	1,191,675			782,860			52

Non-interest revenue:
Service charges on deposit accounts	64,089			54,069			19
Fiduciary and asset management fees	56,545			46,009			23
Card fees	38,538			30,959			24
Brokerage revenue	41,644			32,987			26
Mortgage banking income	47,312			66,987			(29	)
Capital markets income	18,929			22,984			(18	)
Income from bank-owned life insurance	22,851			21,572			6
Investment securities (losses) gains, net	(1,028		)	76,594			nm
Other non-interest revenue	44,117			39,591			11

Total non-interest revenue	332,997			391,752			(15	)

Non-interest expense:
Salaries and other personnel expense	482,408			464,268			4
Net occupancy, equipment, and software expense	126,442			125,475			1
Third-party processing and other services	63,897			67,193			(5	)
Professional fees	23,771			39,358			(40	)
FDIC insurance and other regulatory fees	16,338			18,922			(14	)
Other operating expenses	91,841			161,860			(43	)

Total non-interest expense	804,697			877,076			(8	)

Income before income taxes	719,975			297,536			142
Income tax expense	159,910			74,250			115

Net income	560,065			223,286			151

Less: Preferred stock dividends	24,872			24,872			—

Net income available to common shareholders	$	535,193		$	198,414		170	%

Net income per common share, basic	$	3.63		$	1.35		169	%

Net income per common share, diluted	3.59			1.34			168

Cash dividends declared per common share	0.99			0.99			—

Return on average assets *	1.37		%	0.58		%	79	bps
Return on average common equity *	15.37			5.87			950

Weighted average common shares outstanding, basic	147,622			147,304			0	%
Weighted average common shares outstanding, diluted	149,069			148,037			1

nm - not meaningful
bps - basis points
* - ratios are annualized

Synovus

INCOME STATEMENT DATA
(Unaudited)

(Dollars in thousands, except per share data)	2021							2020			Third Quarter

	Third Quarter			Second Quarter		First Quarter		Fourth Quarter	Third Quarter		'21 vs '20
	Third Quarter			Second Quarter		First Quarter		Fourth Quarter	Third Quarter		% Change

Interest income	$	412,504		412,743		409,817		433,479	435,550		(5	)%
Interest expense	27,587			30,883		35,960		47,547	58,560		(53	)

Net interest income	384,917			381,860		373,857		385,932	376,990		2
(Reversal of) provision for credit losses	(7,868		)	(24,598	)	(18,575	)	11,066	43,383		nm

Net interest income after provision for credit losses	392,785			406,458		392,432		374,866	333,607		18

Non-interest revenue:
Service charges on deposit accounts	22,641			21,414		20,033		19,063	17,813		27
Fiduciary and asset management fees	19,786			18,805		17,954		17,242	15,885		25
Card fees	13,238			13,304		11,996		11,743	10,823		22
Brokerage revenue	14,745			13,926		12,974		11,794	10,604		39
Mortgage banking income	11,155			13,842		22,315		24,426	31,229		(64	)
Capital markets income	8,089			3,335		7,505		4,352	5,690		42
Income from bank-owned life insurance	6,820			7,188		8,843		9,725	7,778		(12	)
Investment securities gains (losses), net	962			—		(1,990	)	2,337	(1,550	)	nm
Other non-interest revenue	17,519			15,273		11,326		14,079	16,139		9

Total non-interest revenue	114,955			107,087		110,956		114,761	114,411		—

Non-interest expense:
Salaries and other personnel expense	160,364			160,567		161,477		153,946	154,994		3
Net occupancy, equipment, and software expense	43,483			41,825		41,134		44,183	41,554		5
Third-party processing and other services	19,446			24,419		20,032		20,799	21,827		(11	)
Professional fees	6,739			7,947		9,084		17,541	13,377		(50	)
FDIC insurance and other regulatory fees	5,212			5,547		5,579		6,288	6,793		(23	)
Other operating expenses	31,788			30,226		29,828		59,741	78,110		(59	)

Total non-interest expense	267,032			270,531		267,134		302,498	316,655		(16	)

Income before income taxes	240,708			243,014		236,254		187,129	131,363		83
Income tax expense	53,935			56,814		49,161		36,720	39,789		36

Net income	186,773			186,200		187,093		150,409	91,574		104

Less: Preferred stock dividends	8,291			8,291		8,291		8,291	8,291		—

Net income available to common shareholders	$	178,482		177,909		178,802		142,118	83,283		114	%

Net income per common share, basic	$	1.22		1.20		1.20		0.96	0.57		114	%

Net income per common share, diluted	1.21			1.19		1.19		0.96	0.56		116

Cash dividends declared per common share	0.33			0.33		0.33		0.33	0.33		—

Return on average assets *	1.34		%	1.36		1.40		1.11	0.69		65	bps
Return on average common equity *	14.96			15.40		15.77		12.31	7.28		768
								0.31
Weighted average common shares outstanding, basic	146,308			148,113		148,467		147,744	147,314		(1	)%
Weighted average common shares outstanding, diluted	147,701			149,747		149,780		148,725	147,976		—

nm - not meaningful
bps - basis points
* - ratios are annualized

Synovus

BALANCE SHEET DATA	September 30, 2021			December 31, 2020			September 30, 2020
(Unaudited)
(In thousands, except share data)

ASSETS
Cash and due from banks	$	483,035		$	531,579		$	578,026
Interest-bearing funds with Federal Reserve Bank	2,103,497			3,586,565			1,266,313
Interest earning deposits with banks	23,261			20,944			20,929
Federal funds sold and securities purchased under resale agreements	77,627			113,829			120,095
Cash, cash equivalents, and restricted cash	2,687,420			4,252,917			1,985,363

Investment securities available for sale, at fair value	10,481,071			7,962,438			7,566,525
Loans held for sale ($152,258, $216,647, and $285,899 measured at fair value, respectively)	550,948			760,123			745,160

Loans, net of deferred fees and costs	38,341,030			38,252,984			39,549,847
Allowance for loan losses	(492,243		)	(605,736		)	(603,800		)
Loans, net	37,848,787			37,647,248			38,946,047

Cash surrender value of bank-owned life insurance	1,065,256			1,049,373			1,044,046
Premises, equipment, and software, net	441,605			463,959			471,208
Goodwill	452,390			452,390			452,390
Other intangible assets, net	37,975			45,112			47,752
Other assets	1,943,677			1,760,599			1,782,047
Total assets	$	55,509,129		$	54,394,159		$	53,040,538

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest-bearing deposits	$	15,787,882		$	13,477,854		$	13,075,081
Interest-bearing deposits	31,900,537			33,213,717			31,590,823

Total deposits	47,688,419			46,691,571			44,665,904

Federal funds purchased and securities sold under repurchase agreements	262,548			227,922			202,344
Other short-term borrowings	—			7,717			400,000
Long-term debt	1,203,761			1,202,494			1,628,385
Other liabilities	1,101,599			1,103,121			1,079,363
Total liabilities	50,256,327			49,232,825			47,975,996

Shareholders' equity:
Preferred stock - no par value. Authorized 100,000,000 shares; issued 22,000,000	537,145			537,145			537,145
Common stock - $1.00 par value. Authorized 342,857,143 shares; issued 169,170,589, 168,132,522, and 167,410,950; outstanding 145,483,994, 148,039,495, and 147,317,923	169,171			168,133			167,411
Additional paid-in capital	3,883,289			3,851,208			3,832,142
Treasury stock, at cost – 23,686,595, 20,093,027, and 20,093,027 shares	(898,707		)	(731,806		)	(731,806		)
Accumulated other comprehensive (loss) income, net	(5,462		)	158,635			174,914
Retained earnings	1,567,366			1,178,019			1,084,736
Total shareholders' equity	5,252,802			5,161,334			5,064,542
Total liabilities and shareholders' equity	$	55,509,129		$	54,394,159		$	53,040,538

Synovus
AVERAGE BALANCES AND YIELDS/RATES⁽¹⁾
(Unaudited)	2021							2020
(Dollars in thousands)	2021							2020
	Third			Second		First		Fourth		Third
	Quarter			Quarter		Quarter		Quarter		Quarter
Interest Earning Assets
Investment securities^{(2) (4)}	$	9,876,651		9,184,691		8,437,563		7,493,822		7,227,400
Yield	1.45		%	1.45		1.40		2.07		2.39
Trading account assets ⁽⁵⁾	$	5,192		2,831		3,063		8,496		5,391
Yield	1.15		%	1.15		2.81		1.03		1.69
Commercial loans ^{(3) (4)}	$	28,891,164		29,849,029		29,844,491		30,363,102		30,730,135
Yield	3.91		%	3.86		3.95		3.96		3.80
Consumer loans ⁽³⁾	$	8,642,969		8,647,448		8,367,776		8,521,449		9,032,437
Yield	3.93		%	3.94		3.98		4.00		4.08
Allowance for loan losses	$	(514,828	)	(561,242	)	(599,872	)	(595,547	)	(591,098	)
Loans, net ⁽³⁾	$	37,019,305		37,935,235		37,612,395		38,289,004		39,171,474
Yield	3.97		%	3.93		4.02		4.03		3.92
Mortgage loans held for sale	$	196,032		242,940		246,962		309,278		244,952
Yield	2.88		%	3.06		2.68		2.74		2.92
Other loans held for sale	$	527,736		615,301		660,753		544,301		493,940
Yield	3.06		%	3.05		2.91		2.81		3.61
Federal funds sold, due from Federal Reserve Bank, and other short-term investments	$	3,271,501		2,705,819		2,838,063		2,716,645		1,265,880
Yield	0.15		%	0.11		0.10		0.10		0.11
Federal Home Loan Bank and Federal Reserve Bank Stock ⁽⁵⁾	$	159,741		159,340		157,657		162,537		200,923
Yield	1.26		%	2.01		1.69		2.64		2.73
Total interest earning assets	$	51,056,158		50,846,157		49,956,456		49,524,083		48,609,960
Yield	3.22		%	3.26		3.32		3.49		3.58
Interest-Bearing Liabilities
Interest-bearing demand deposits	$	8,463,325		8,601,262		8,570,753		8,531,415		7,789,095
Rate	0.10		%	0.11		0.14		0.16		0.19
Money Market accounts	$	15,597,723		15,476,262		15,348,916		14,411,860		13,272,972
Rate	0.15		%	0.19		0.23		0.26		0.36
Savings deposits	$	1,377,089		1,333,297		1,219,288		1,147,667		1,114,956
Rate	0.02		%	0.02		0.02		0.01		0.02
Time deposits under $100,000	$	993,284		1,077,931		1,161,306		1,239,592		1,379,923
Rate	0.33		%	0.41		0.56		0.74		1.03
Time deposits over $100,000	$	2,430,744		2,714,451		2,993,996		3,302,959		3,863,821
Rate	0.45		%	0.56		0.74		1.03		1.44
Other brokered deposits	$	1,862,346		1,901,097		1,950,582		1,978,393		1,912,114
Rate	0.21		%

Synovus Announces Earnings for the Third Quarter 2021