Synovus Announces Earnings for the First Quarter 2022

Diluted Earnings per Share of $1.11 vs. $1.19 in 1Q21

Adjusted Diluted Earnings per Share of $1.08 vs. $1.21 in 1Q21

COLUMBUS, Ga.--(BUSINESS WIRE)--Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended March 31, 2022. “Performance during the first quarter reflects strong execution against our profitable growth objectives, evidenced by 11 percent annualized loan growth and adjusted pre-provision net revenue of $213 million, up 9% year-over-year,” said Synovus President and CEO Kevin Blair. “In a rapidly changing landscape that presented new challenges, our team excelled, enabling an increase in our financial expectations for 2022. Leveraging the strength of our core franchise while leaning into our solid, transformational growth plan, we will enhance performance throughout the year while proactively pursuing new and expanded sources of revenue. I remain confident in the strength and capabilities of our team and our ability to achieve sustainable top quartile performance.”

First Quarter 2022 Highlights

• Net income available to common shareholders of $162.7 million, or $1.11 per diluted share, down $0.20 sequentially and down $0.08 compared to prior year.
  • Adjusted diluted EPS of $1.08, down $0.27 sequentially and down $0.13 compared to prior year. Year-over-year decline was primarily due to increased provision for credit losses.
• Period-end loans increased $857.2 million sequentially, and $1.05 billion, or 11.0% annualized, excluding Paycheck Protection program (PPP) loans.
• Core transaction deposits (non-interest bearing, NOW/savings, and money market deposits excluding public and brokered funds) increased $405.0 million sequentially, or 4% annualized, largely due to growth in non-interest bearing and savings deposits.
  • Total deposit costs of 0.11% down 1 bp sequentially primarily due to mix optimization.
• Pre-provision net revenue of $225.1 million increased $7.5 million, or 3%, compared to prior year.
  • Adjusted pre-provision net revenue of $213.4 million increased $17.3 million, or 9%, compared to prior year driven primarily by growth in net interest income excluding PPP fees of over $36 million, or 10%.

First Quarter Summary

	Reported									Adjusted
(dollars in thousands)	1Q22			4Q21			1Q21			1Q22			4Q21			1Q21
Net income available to common shareholders	$	162,746		$	192,110		$	178,802		$	158,368		$	198,373		$	180,685
Diluted earnings per share		1.11			1.31			1.19			1.08			1.35			1.21
Total loans		40,169,150			39,311,958			38,805,101			N/A			N/A			N/A
Total deposits		48,656,244			49,427,276			47,368,951			N/A			N/A			N/A
Total TE^(1) revenue		498,447			510,265			485,587			499,742			509,040			486,785
Return on avg assets		1.22	%		1.40	%		1.40	%		1.19	%		1.44	%		1.41	%
Return on avg common equity		14.20			16.11			15.77			13.82			16.64			15.93
Return on avg tangible common equity		16.02			18.14			17.85			15.59			18.72			18.04
Net interest margin		3.00			2.96			3.04			N/A			N/A			N/A
Efficiency ratio-TE^(1)		54.66			57.85			55.01			55.50			55.64			54.12
NCO ratio-QTD		0.19			0.11			0.21			N/A			N/A			N/A
NPA ratio		0.40			0.40			0.50			N/A			N/A			N/A
^(1)Taxable equivalent

Balance Sheet

Loans^*
(dollars in millions)	1Q22		4Q21		Linked Quarter Change			Linked Quarter % Change		1Q21		Year/Year Change		Year/Year % Change
Commercial & industrial	$	20,352.3	$	19,622.9	$	729.4		4	%	$	19,779.6	$	572.7	3	%
Commercial real estate		11,145.3		11,015.1		130.2		1			10,533.9		611.4	6
Consumer		8,671.5		8,673.9		(2.4	)	—			8,491.6		179.9	2
Total loans	$	40,169.2	$	39,312.0	$	857.2		2	%	$	38,805.1	$	1,364.0	4	%
^*Amounts may not total due to rounding

• Total loans ended the quarter at $40.17 billion, up $857.2 million sequentially, and $1.05 billion, or 11.0% annualized, excluding PPP loans.
• Commercial and industrial (C&I) loans increased $729.4 million sequentially, led by broad based growth within our Wholesale Banking segment, partially offset by declines in PPP loan balances of $196.7 million.
• CRE loans increased $130.2 million, with payoff activity down from elevated levels seen in the second half of 2021.
• Consumer loans decreased $2.4 million sequentially.

Deposits^*
(dollars in millions)	1Q22		4Q21		Linked Quarter Change			Linked Quarter % Change		1Q21		Year/Year Change			Year/Year % Change
Non-interest-bearing DDA	$	15,526.7	$	15,242.8	$	283.8		2	%	$	13,742.1	$	1,784.6		13	%
Interest-bearing DDA		6,685.4		6,347.0		338.4		5			5,841.7		843.6		14
Money market		14,596.9		14,886.4		(289.5	)	(2	)		13,943.7		653.2		5
Savings		1,476.7		1,404.4		72.3		5			1,277.0		199.7		16
Public funds		6,048.7		6,284.6		(235.8	)	(4	)		6,154.9		(106.2	)	(2	)
Time deposits		2,284.2		2,427.1		(142.9	)	(6	)		3,214.8		(930.6	)	(29	)
Brokered deposits		2,037.7		2,835.0		(797.3	)	(28	)		3,194.7		(1,157.0	)	(36	)
Total deposits	$	48,656.2	$	49,427.3	$	(771.0	)	(2	)%	$	47,369.0	$	1,287.3		3	%
^*Amounts may not total due to rounding

• Total deposits ended the quarter at $48.66 billion, down $771.0 million sequentially.
• Core transaction deposits increased $405.0 million sequentially, or 4% annualized.
  • Growth of $283.8 million in non-interest bearing deposits and $72.3 million in savings deposits.
• Total deposit costs declined 1 bp sequentially to 0.11% due to mix optimization.

Income Statement Summary^**
(in thousands, except per share data)	1Q22		4Q21			Linked Quarter Change			Linked Quarter % Change		1Q21			Year/Year Change			Year/Year % Change
Net interest income	$	392,248	$	392,313		$	(65	)	—	%	$	373,857		$	18,391		5	%
Non-interest revenue		105,334		117,068			(11,734	)	(10	)		110,956			(5,622	)	(5	)
Non-interest expense		272,450		295,207			(22,757	)	(8	)		267,134			5,316		2
Provision for (reversal of) credit losses		11,400		(55,210	)		66,610		nm			(18,575	)		29,975		nm
Income before taxes	$	213,732	$	269,384		$	(55,652	)	(21	)%	$	236,254		$	(22,522	)	(10	)%
Income tax expense		42,695		68,983			(26,288	)	(38	)		49,161			(6,466	)	(13	)
Preferred stock dividends		8,291		8,291			—		—			8,291			—		—
Net income available to common shareholders	$	162,746	$	192,110		$	(29,364	)	(15	)%	$	178,802		$	(16,056	)	(9	)%
Weighted average common shares outstanding, diluted		146,665		146,793			(128	)	—	%		149,780			(3,115	)	(2	)%
Diluted earnings per share	$	1.11	$	1.31		$	(0.20	)	(15	)	$	1.19		$	(0.08	)	(7	)
Adjusted diluted earnings per share		1.08		1.35			(0.27	)	(20	)		1.21			(0.13	)	(11	)
^**Amounts may not total due to rounding

Core Performance

• Net interest income of $392.2 million was flat sequentially, despite lower day count and PPP fees, and increased $18.4 million, or 5%, compared to prior year.
  • Net PPP fee accretion of $6.9 million, down $5.8 million sequentially and down $18.0 million year-over-year.
  • Net interest margin was 3.00%, up 4 bps sequentially, aided by efficient balance sheet management.
• Non-interest revenue decreased $11.7 million, or 10%, sequentially and decreased $5.6 million, or 5%, compared to prior year. Adjusted non-interest revenue decreased $9.2 million, or 8%, sequentially and decreased $5.5 million, or 5%, compared to prior year.
  • Quarter-over-quarter decline was primarily related to an $8 million BOLI benefit in the previous quarter.
  • Year-over-year decline was primarily due to lower mortgage banking income resulting from increasing mortgage rates and lower refinancing volumes.
• Non-interest expense decreased $22.8 million, or 8%, sequentially and increased $5.3 million, or 2%, compared to prior year. Adjusted non-interest expense decreased $6.1 million, or 2%, sequentially and increased $13.7 million, or 5%, compared to prior year.
  • Quarter-over-quarter decline was a result of prudent expense management and the normalization of expense from an unusually high fourth quarter of 2021.
  • Year-over-year increase was primarily due to incentives and costs associated with elevated performance.
• Credit quality ratios remain strong and near historical lows. The net charge-off ratio for the quarter was 0.19%; both the non-performing loan and asset ratios remained flat at 0.33% and 0.40%, respectively; and total past dues were 0.11% of total loans outstanding.
• Provision for credit losses of $11.4 million compared to a reversal of provision for credit losses of $55.2 million for the fourth quarter of 2021; allowance for credit losses coverage ratio (to loans) of 1.15%, a decline of 4 bps sequentially. Drivers of the decline included positive trends in our credit performance and loan mix mostly offset by economic uncertainty which slowed the pace of the allowance decline this quarter.
• The effective tax rate was 19.98% for the quarter.

Capital Ratios
	1Q22			4Q21		1Q21
Common equity Tier 1 capital (CET1) ratio	9.47	%	^*	9.50	%	9.74	%
Tier 1 capital ratio	10.60		^*	10.66		10.99
Total risk-based capital ratio	12.53		^*	12.61		13.34
Tier 1 leverage ratio	8.87		^*	8.72		8.80
Tangible common equity ratio	6.80			7.52		7.55
* Ratios are preliminary.

Capital

• Preliminary CET1 ratio declined 3 bps during the quarter to 9.47%, and the preliminary total risk-based capital ratio of 12.53% declined 8 bps from the previous quarter as capital generated through earnings helped offset the impact of loan growth and a $0.34 dividend for common shareholders.

First Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on April 21, 2022. 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 and a full suite of specialized products and services, including private banking, treasury management, wealth management, mortgage services, premium finance, asset-based lending, structured lending, and international banking through 272 branches in Georgia, Alabama, South Carolina, Florida, and Tennessee. Synovus is a Great Place to Work-Certified Company and 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, 2021, 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; adjusted 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; pre-provision net revenue; 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) 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. Adjusted pre-provision net revenue is used by management to evaluate pre-tax earnings exclusive of provision for credit losses, which can vary significantly, and other items that management believes are not indicative of ongoing operations and affect period-to-period comparisons. 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)	1Q22			4Q21			1Q21
Adjusted non-interest revenue
Total non-interest revenue	$	105,334		$	117,068		$	110,956
Subtract/add: Investment securities (gains) losses, net		—			(230	)		1,990
Subtract/add: Fair value adjustment on non-qualified deferred compensation		1,295			(995	)		(792	)
Adjusted non-interest revenue	$	106,629		$	115,843		$	112,154
Adjusted non-interest expense
Total non-interest expense	$	272,450		$	295,207		$	267,134
Subtract/add: Restructuring charges		6,424			(5,958	)		(531	)
Subtract: Valuation adjustment to Visa derivative		—			(2,656	)		—
Subtract: Loss on early extinguishment of debt, net		(677	)		—			—
Subtract/add: Fair value adjustment on non-qualified deferred compensation		1,295			(995	)		(792	)
Adjusted non-interest expense	$	279,492		$	285,598		$	265,811
Reconciliation of Non-GAAP Financial Measures, continued
(dollars in thousands)	1Q22			4Q21			1Q21
Total adjusted revenue and adjusted tangible efficiency ratio
Adjusted non-interest expense	$	279,492		$	285,598		$	265,811
Subtract: Amortization of intangibles		(2,118	)		(2,379	)		(2,379	)
Adjusted tangible non-interest expense	$	277,374		$	283,219		$	263,432
Net interest income	$	392,248		$	392,313		$	373,857
Add: Tax equivalent adjustment		865			884			774
Add: Total non-interest revenue		105,334			117,068			110,956
Total TE revenue		498,447			510,265			485,587
Subtract/add: Investment securities (gains) losses, net		—			(230	)		1,990
Subtract/add: Fair value adjustment on non-qualified deferred compensation		1,295			(995	)		(792	)
Total adjusted revenue	$	499,742		$	509,040		$	486,785
Efficiency ratio-TE		54.66	%		57.85	%		55.01	%
Adjusted tangible efficiency ratio		55.50			55.64			54.12
Adjusted pre-provision net revenue
Net interest income	$	392,248		$	392,313		$	373,857
Add: Total non-interest revenue		105,334			117,068			110,956
Subtract: Non-interest expense		272,450			295,207			267,134
Pre-provision net revenue	$	225,132		$	214,174		$	217,679
Total adjusted revenue	$	499,742		$	509,040		$	486,785
Subtract: Adjusted non-interest expense		279,492			285,598			265,811
Subtract: PPP fees		6,885			12,684			24,890
Adjusted pre-provision net revenue	$	213,365		$	210,758		$	196,084

Adjusted return on average assets
Net income	$	171,037		$	200,401		$	187,093
Add/subtract: Restructuring charges		(6,424	)		5,958			531
Add: Valuation adjustment to Visa derivative		—			2,656			—
Add: Loss on early extinguishment of debt, net		677			—			—
Subtract/add: Investment securities (gains) losses, net		—			(230	)		1,990
Add/subtract: Tax effect of adjustments ^(1)		1,369			(2,121	)		(638	)
Adjusted net income	$	166,659		$	206,664		$	188,976
Net income annualized	$	693,650		$	795,069		$	758,766
Adjusted net income annualized	$	675,895		$	819,917		$	766,403
Total average assets	$	56,855,898		$	56,911,929		$	54,188,504
Return on average assets		1.22	%		1.40	%		1.40	%
Adjusted return on average assets		1.19			1.44			1.41
Reconciliation of Non-GAAP Financial Measures, continued
(dollars in thousands)	1Q22			4Q21			1Q21
Adjusted net income available to common shareholders and adjusted diluted earnings per share
Net income available to common shareholders	$	162,746		$	192,110		$	178,802
Add/subtract: Restructuring charges		(6,424	)		5,958			531
Add: Valuation adjustment to Visa derivative		—			2,656			—
Add: Loss on early extinguishment of debt, net		677			—			—
Subtract/add: Investment securities (gains) losses, net		—			(230	)		1,990
Add/subtract: Tax effect of adjustments ^(1)		1,369			(2,121	)		(638	)
Adjusted net income available to common shareholders	$	158,368		$	198,373		$	180,685
Weighted average common shares outstanding, diluted		146,665			146,793			149,780
Diluted earnings per share	$	1.11		$	1.31		$	1.19
Adjusted diluted earnings per share		1.08			1.35			1.21

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	$	162,746		$	192,110		$	178,802
Add/subtract: Restructuring charges		(6,424	)		5,958			531
Add: Valuation adjustment to Visa derivative		—			2,656			—
Add: Loss on early extinguishment of debt, net		677			—			—
Subtract/add: Investment securities (gains) losses, net		—			(230	)		1,990
Add/subtract: Tax effect of adjustments ^(1)		1,369			(2,121	)		(638	)
Adjusted net income available to common shareholders	$	158,368		$	198,373		$	180,685
Adjusted net income available to common shareholders annualized	$	642,270		$	787,023		$	732,778
Add: Amortization of intangibles, annualized net of tax		6,543			7,050			7,207
Adjusted net income available to common shareholders excluding amortization of intangibles annualized	$	648,813		$	794,073		$	739,985
Net income available to common shareholders annualized	$	660,025		$	762,176		$	725,141
Add: Amortization of intangibles, annualized net of tax		6,543			7,050			7,207
Net income available to common shareholders excluding amortization of intangibles annualized	$	666,568		$	769,226		$	732,348
Total average shareholders' equity less preferred stock	$	4,647,426		$	4,730,828		$	4,599,076
Subtract: Goodwill		(452,390	)		(452,390	)		(452,390	)
Subtract: Other intangible assets, net		(34,576	)		(36,805	)		(44,005	)
Total average tangible shareholders' equity less preferred stock	$	4,160,460		$	4,241,633		$	4,102,681
Return on average common equity		14.20	%		16.11	%		15.77	%
Adjusted return on average common equity		13.82			16.64			15.93
Return on average tangible common equity		16.02			18.14			17.85
Adjusted return on average tangible common equity		15.59			18.72			18.04

Reconciliation of Non-GAAP Financial Measures, continued
(dollars in thousands)	March 31, 2022			December 31, 2021			March 31, 2021
Tangible common equity ratio
Total assets	$	56,419,549		$	57,317,226		$	55,159,011
Subtract: Goodwill		(452,390	)		(452,390	)		(452,390	)
Subtract: Other intangible assets, net		(33,478	)		(35,596	)		(42,733	)
Tangible assets	$	55,933,681		$	56,829,240		$	54,663,888
Total shareholders’ equity	$	4,824,635		$	5,296,800		$	5,161,717
Subtract: Goodwill		(452,390	)		(452,390	)		(452,390	)
Subtract: Other intangible assets, net		(33,478	)		(35,596	)		(42,733	)
Subtract: Preferred Stock, no par value		(537,145	)		(537,145	)		(537,145	)
Tangible common equity	$	3,801,622		$	4,271,669		$	4,129,449
Total shareholders’ equity to total assets ratio		8.55	%		9.24	%		9.36	%
Tangible common equity ratio		6.80			7.52			7.55
^(1) An assumed marginal tax rate of 23.8% for 2022 and 25.3% for 2021 was applied.

Synovus
INCOME STATEMENT DATA
(Unaudited)
(Dollars in thousands, except per share data)	2022			2021								First Quarter
	First			Fourth		Third		Second		First		'22 vs '21
	Quarter			Quarter		Quarter		Quarter		Quarter		% Change
Interest income	$	416,062		418,279		412,504		412,743		409,817		2	%
Interest expense		23,814		25,966		27,587		30,883		35,960		(34	)
Net interest income		392,248		392,313		384,917		381,860		373,857		5
Provision for (reversal of) credit losses		11,400		(55,210	)	(7,868	)	(24,598	)	(18,575	)	nm
Net interest income after provision for credit losses		380,848		447,523		392,785		406,458		392,432		(3	)
Non-interest revenue:
Service charges on deposit accounts		22,539		22,221		22,641		21,414		20,033		13
Fiduciary and asset management fees		20,277		20,602		19,786		18,805		17,954		13
Card fees		14,756		12,861		13,238		13,304		11,996		23
Brokerage revenue		14,655		14,795		14,745		13,926		12,974		13
Mortgage banking income		5,953		7,059		11,155		13,842		22,315		(73	)
Capital markets income		5,472		7,188		8,089		3,335		7,505		(27	)
Income from bank-owned life insurance		6,556		15,168		6,820		7,188		8,843		(26	)
Investment securities gains (losses), net		—		230		962		—		(1,990	)	nm
Other non-interest revenue		15,126		16,944		17,519		15,273		11,326		34
Total non-interest revenue		105,334		117,068		114,955		107,087		110,956		(5	)
Non-interest expense:
Salaries and other personnel expense		164,684		167,018		160,364		160,567		161,477		2
Net occupancy, equipment, and software expense		42,877		42,780		43,483		41,825		41,134		4
Third-party processing and other services		20,996		22,791		19,446		24,419		20,032		5
Professional fees		8,474		9,014		6,739		7,947		9,084		(7	)
FDIC insurance and other regulatory fees		6,250		6,016		5,212		5,547		5,579		12
Restructuring charges		(6,424	)	5,958		319		415		531		nm
Other operating expenses		35,593		41,630		31,469		29,811		29,297		21
Total non-interest expense		272,450		295,207		267,032		270,531		267,134		2
Income before income taxes		213,732		269,384		240,708		243,014		236,254		(10	)
Income tax expense		42,695		68,983		53,935		56,814		49,161		(13	)
Net income		171,037		200,401		186,773		186,200		187,093		(9	)
Less: Preferred stock dividends		8,291		8,291		8,291		8,291		8,291		—
Net income available to common shareholders	$	162,746		192,110		178,482		177,909		178,802		(9	)%
Net income per common share, basic	$	1.12		1.32		1.22		1.20		1.20		(7	)%
Net income per common share, diluted		1.11		1.31		1.21		1.19		1.19		(7	)
Cash dividends declared per common share		0.34		0.33		0.33		0.33		0.33		3
Return on average assets *		1.22	%	1.40		1.34		1.36		1.40		(18) bps
Return on average common equity *		14.20		16.11		14.96		15.40		15.77		(157	)
Weighted average common shares outstanding, basic		145,273		145,316		146,308		148,113		148,467		(2	)%
Weighted average common shares outstanding, diluted		146,665		146,793		147,701		149,747		149,780		(2	)
nm - not meaningful
bps - basis points
* - ratios are annualized

Synovus
BALANCE SHEET DATA	March 31, 2022			December 31, 2021			March 31, 2021
(Unaudited)
(In thousands, except share data)
ASSETS
Cash and due from banks	$	557,178		$	432,925		$	493,645
Interest-bearing funds with Federal Reserve Bank		941,272			2,479,006			2,722,100
Interest earning deposits with banks		27,411			25,535			23,969
Federal funds sold and securities purchased under resale agreements		27,642			72,387			88,552
Cash, cash equivalents, and restricted cash		1,553,503			3,009,853			3,328,266
Investment securities available for sale, at fair value		10,463,101			10,918,329			8,825,757
Loans held for sale ($111,992, $108,198, and $242,010 measured at fair value, respectively)		723,921			750,642			993,887
Loans, net of deferred fees and costs		40,169,150			39,311,958			38,805,101
Allowance for loan losses		(414,956	)		(427,597	)		(563,214	)
Loans, net		39,754,194			38,884,361			38,241,887
Cash surrender value of bank-owned life insurance		1,075,175			1,068,616			1,054,475
Premises, equipment, and software, net		386,631			407,241			454,911
Goodwill		452,390			452,390			452,390
Other intangible assets, net		33,478			35,596			42,733
Other assets		1,977,156			1,790,198			1,764,705
Total assets	$	56,419,549		$	57,317,226		$	55,159,011
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest-bearing deposits	$	16,611,344		$	16,392,653		$	14,660,287
Interest-bearing deposits		32,044,900			33,034,623			32,708,664
Total deposits		48,656,244			49,427,276			47,368,951
Federal funds purchased and securities sold under repurchase agreements		501,124			264,133			293,659
Long-term debt		805,259			1,204,229			1,202,825
Other liabilities		1,632,287			1,124,788			1,131,859
Total liabilities		51,594,914			52,020,426			49,997,294
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 169,912,021, 169,383,758, and 168,978,380; outstanding 145,334,763, 145,010,086, and 148,888,513		169,912			169,384			168,978
Additional paid-in capital		3,899,269			3,894,109			3,864,281
Treasury stock, at cost – 24,577,258, 24,373,672, and 20,089,867 shares		(941,168	)		(931,497	)		(731,690	)
Accumulated other comprehensive income (loss), net		(662,065	)		(82,321	)		15,278
Retained earnings		1,821,542			1,709,980			1,307,725
Total shareholders’ equity		4,824,635			5,296,800			5,161,717
Total liabilities and shareholders' equity	$	56,419,549		$	57,317,226		$	55,159,011

Synovus
AVERAGE BALANCES, INTEREST, AND YIELDS/RATES
(Unaudited)
	First Quarter 2022							Fourth Quarter 2021							First Quarter 2021
(dollars in thousands)	Average Balance			Interest		Yield/ Rate		Average Balance			Interest		Yield/ Rate		Average Balance			Interest		Yield/ Rate
Assets
Interest earning assets:
Commercial loans ^(1) (2) (3)	$	30,756,752		$	280,588	3.70	%	$	29,685,876		$	286,513	3.83	%	$	29,924,651		$	291,200	3.95	%
Consumer loans ^(1) (2)		8,594,009			81,368	3.81			8,679,721			83,836	3.89			8,287,616			82,065	3.83
Less: Allowance for loan losses		(423,953	)		—	—			(474,972	)		—	—			(599,872	)		—	—
Loans, net		38,926,808			361,956	3.76			37,890,625			370,349	3.88			37,612,395			373,265	4.02
Investment securities available for sale		11,259,800			47,250	1.68			10,884,571			41,447	1.52			8,437,563			29,458	1.40
Trading account assets		9,078			39	1.73			11,280			42	1.50			3,063			22	2.81
Other earning assets^(4)		1,919,531			815	0.17			3,186,271			1,208	0.15			2,838,063			716	0.10
FHLB and Federal Reserve Bank stock		160,065			685	1.71			159,933			919	2.30			157,657			668	1.69
Mortgage loans held for sale		103,887			882	3.40			130,786			1,009	3.09			246,962			1,657	2.68
Other loans held for sale		597,062			5,300	3.55			518,992			4,189	3.16			660,753			4,805	2.91
Total interest earning assets		52,976,231		$	416,927	3.18	%		52,782,458		$	419,163	3.16	%		49,956,456		$	410,591	3.32	%
Cash and due from banks		548,684							541,788							518,738
Premises and equipment		398,774							421,577							460,466
Other real estate		11,759							1,351							1,823
Cash surrender value of bank-owned life insurance		1,070,886							1,067,004							1,051,520
Other assets^(5)		1,849,564							2,097,751							2,199,501
Total assets	$	56,855,898						$	56,911,929						$	54,188,504
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits	$	9,549,527		$	2,372	0.10	%	$	9,165,054		$	2,238	0.10	%	$	8,570,753		$	2,973	0.14	%
Money market accounts		16,045,627			5,349	0.14			15,998,203			5,562	0.14			15,348,916			8,730	0.23
Savings deposits		1,460,648			67	0.02			1,408,858			65	0.02			1,219,288			49	0.02
Time deposits		3,009,795			2,138	0.29			3,163,062			2,599	0.33			4,155,302			7,042	0.69
Brokered deposits		2,788,124			3,733	0.54			2,836,841			3,980	0.56			3,369,333			6,224	0.75
Federal funds purchased and securities sold under repurchase agreements		194,352			11	0.02			227,664			24	0.04			209,448			34	0.07
Other short-term borrowings		4,653			—	—			—			—	—			—			—	—
Long-term debt		982,423			10,144	4.13			1,203,959			11,498	3.82			1,202,613			10,908	3.63
Total interest-bearing liabilities		34,035,149		$	23,814	0.28	%		34,003,641		$	25,966	0.30	%		34,075,653		$	35,960	0.42	%
Non-interest-bearing demand deposits		16,491,643							16,545,203							13,791,286
Other liabilities		1,144,535							1,095,112							1,185,344
Shareholders' equity		5,184,571							5,267,973							5,136,221
Total liabilities and shareholders' equity	$	56,855,898						$	56,911,929						$	54,188,504
Net interest income and net interest margin, taxable equivalent^(6)				$	393,113	3.00	%				$	393,197	2.96	%				$	374,631	3.04	%
Less: taxable-equivalent adjustment					865							884							774
Net interest income				$	392,248						$	392,313						$	373,857

^(1)	Average loans are shown net of deferred fees and costs. NPLs are included.
^(2)	Interest income includes net loan fees as follows: First Quarter 2022 — $20.7 million, Fourth Quarter 2021 — $24.7 million, and First Quarter 2021 — $31.9 million.
^(3)	Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans and investment securities to a taxable-equivalent basis.
^(4)	Includes interest-bearing funds with Federal Reserve Bank, interest earning deposits with banks, and federal funds sold and securities purchased under resale agreements.
^(5)	Includes average net unrealized gains/(losses) on investment securities available for sale of $(247.4) million, $(34.2) million, and $116.1 million for the First Quarter 2022, Fourth Quarter 2021, and First Quarter 2021, respectively.
^(6)	The net interest margin is calculated by dividing annualized net interest income-taxable equivalent by average total interest earning assets.

Synovus
LOANS OUTSTANDING BY TYPE
(Unaudited)	Total Loans		Total Loans		Linked Quarter		Total Loans		Year/Year
(Dollars in thousands)
Loan Type	March 31, 2022		December 31, 2021		% Change		March 31, 2021		% Change
Commercial, Financial, and Agricultural	$	12,659,611	$	12,147,858	4	%	$	12,748,106	(1	)%
Owner-Occupied		7,692,714		7,475,066	3			7,031,505	9
Total Commercial & Industrial		20,352,325		19,622,924	4			19,779,611	3
Multi-Family		2,288,497		2,129,424	7			2,220,939	3
Hotels		1,593,983		1,537,060	4			1,462,370	9
Office Buildings		2,521,381		2,511,058	—			2,280,053	11
Shopping Centers		1,500,768		1,655,465	(9	)		1,627,933	(8	)
Warehouses		814,756		801,639	2			692,267	18
Other Investment Property		1,327,760		1,268,130	5			1,052,163	26
Total Investment Properties		10,047,145		9,902,776	1			9,335,725	8
1-4 Family Construction		229,038		206,881	11			189,626	21
1-4 Family Investment Mortgage		391,636		438,588	(11	)		449,328	(13	)
Total 1-4 Family Properties		620,674		645,469	(4	)		638,954	(3	)
Commercial Development		102,757		102,790	—			142,380	(28	)
Residential Development		193,580		171,820	13			196,653	(2	)
Land Acquisition		181,162		192,256	(6	)		220,216	(18	)
Land and Development		477,499		466,866	2			559,249	(15	)
Total Commercial Real Estate		11,145,318		11,015,111	1			10,533,928	6
Consumer Mortgages		5,052,003		5,068,998	—			5,299,130	(5	)
Home Equity		1,416,341		1,361,419	4			1,460,866	(3	)
Credit Cards		188,247		204,172	(8	)		181,594	4
Other Consumer Loans		2,014,916		2,039,334	(1	)		1,549,972	30
Total Consumer		8,671,507		8,673,923	—			8,491,562	2
Total	$	40,169,150	$	39,311,958	2	%	$	38,805,101	4	%
NON-PERFORMING LOANS COMPOSITION
(Unaudited)	Total Non-performing Loans		Total Non-performing Loans		Linked Quarter		Total Non-performing Loans		Year/Year
(Dollars in thousands)
Loan Type	March 31, 2022		December 31, 2021		% Change		March 31, 2021		% Change
Commercial, Financial, and Agricultural	$	64,888	$	61,787	5	%	$	76,460	(15	)%
Owner-Occupied		10,854		11,196	(3	)		17,192	(37	)
Total Commercial & Industrial		75,742		72,983	4			93,652	(19	)
Multi-Family		2,639		2,380	11			2,698	(2	)
Office Buildings		2,205		1,615	37			1,645	34
Shopping Centers		915		915	—			20,138	(95	)
Warehouses		482		223	116			221	118
Other Investment Property		1,047		717	46			887	18
Total Investment Properties		7,288		5,850	25			25,589	(72	)
1-4 Family Construction		55		55	—			1,291	(96	)
1-4 Family Investment Mortgage		2,187		4,508	(51	)		2,760	(21	)
Total 1-4 Family Properties		2,242		4,563	(51	)		4,051	(45	)
Commercial Development		625		449	39			567	10
Residential Development		407		446	(9	)		452	(10	)
Land Acquisition		1,021		1,023	—			782	31
Land and Development		2,053		1,918	7			1,801	14
Total Commercial Real Estate		11,583		12,331	(6	)		31,441	(63	)
Consumer Mortgages		29,997		29,078	3			11,201	168
Home Equity		8,854		9,773	(9	)		12,207	(27	)
Other Consumer Loans		5,955		6,877	(13	)		6,668	(11	)
Total Consumer		44,806		45,728	(2	)		30,076	49
Total	$	132,131	$	131,042	1	%	$	155,169	(15	)%

Synovus
CREDIT QUALITY DATA
(Unaudited)
(Dollars in thousands)	2022			2021				First Quarter
	First			Fourth	Third	Second	First	'22 vs '21
	Quarter			Quarter	Quarter	Quarter	Quarter	% Change
Non-performing Loans (NPLs)	$	132,131		131,042	155,465	161,028	155,169	(15	)%
Impaired Loans Held for Sale		—		—	—	—	23,590	nm
Other Real Estate and Other Assets		26,759		27,137	16,883	16,806	16,849	59
Non-performing Assets (NPAs)		158,890		158,179	172,348	177,834	195,608	(19	)
Allowance for Loan Losses (ALL)		414,956		427,597	492,243	516,708	563,214	(26	)
Reserve for Unfunded Commitments		47,317		41,885	42,971	46,890	51,528	(8	)
Allowance for Credit Losses (ACL)		462,273		469,482	535,214	563,598	614,742	(25	)
Net Charge-Offs - Quarter		18,609		10,522	20,516	26,547	20,204
Net Charge-Offs - YTD		18,609		77,788	67,266	46,750	20,204
Net Charge-Offs / Average Loans - Quarter ^(1)		0.19	%	0.11	0.22	0.28	0.21
Net Charge-Offs / Average Loans - YTD ^(1)		0.19		0.20	0.24	0.24	0.21
NPLs / Loans		0.33		0.33	0.41	0.42	0.40
NPAs / Loans, ORE and specific other assets		0.40		0.40	0.45	0.46	0.50
ACL/Loans		1.15		1.19	1.40	1.47	1.58
ALL/Loans		1.03		1.09	1.28	1.35	1.45
ACL/NPLs		349.86		358.27	344.27	350.00	396.18
ALL/NPLs		314.05		326.31	316.63	320.88	362.97
Past Due Loans over 90 days and Still Accruing	$	3,067		6,770	5,960	4,415	3,804	(19	)
As a Percentage of Loans Outstanding		0.01	%	0.02	0.02	0.01	0.01
Total Past Due Loans and Still Accruing	$	45,385		57,565	60,817	49,321	45,693	(1	)
As a Percentage of Loans Outstanding		0.11	%	0.15	0.16	0.13	0.12
Accruing Troubled Debt Restructurings (TDRs)	$	145,957		119,804	126,055	124,528	129,776	12
^(1) Ratio is annualized.
SELECTED CAPITAL INFORMATION ^(1)
(Unaudited)
(Dollars in thousands)
	March 31,			December 31,	March 31,
	2022			2021	2021
Common Equity Tier 1 Capital Ratio		9.47	%	9.50	9.74
Tier 1 Capital Ratio		10.60		10.66	10.99
Total Risk-Based Capital Ratio		12.53		12.61	13.34
Tier 1 Leverage Ratio		8.87		8.72	8.80
Common Equity as a Percentage of Total Assets ^(2)		7.60		8.30	8.38
Tangible Common Equity Ratio ^(3) (5)		6.80		7.52	7.55
Book Value Per Common Share^(4)	$	29.50		32.82	31.06
Tangible Book Value Per Common Share ^(3)		26.16		29.46	27.74
^(1) Current quarter regulatory capital information is preliminary.
^(2) Common equity consists of Total Shareholders' Equity less Preferred Stock.
^(3) Excludes the carrying value of goodwill and other intangible assets from common equity and total assets.
^(4) Book Value Per Common Share consists of Total Shareholders' Equity less Preferred Stock divided by total common shares outstanding.
^(5) See "Non-GAAP Financial Measures" of this report for applicable reconciliation.