Diluted Earnings per Share of $1.19 vs. $0.20 in 1Q20

Adjusted Diluted Earnings per Share of $1.21 vs. $0.21 in 1Q20

Synovus Financial Corp. (NYSE:SNV) today reported financial results for the quarter ended March 31, 2021.

First Quarter 2021 Highlights

Net income available to common shareholders of $178.8 million or $1.19 per diluted share, up $0.23 sequentially and $0.99 compared to prior year.
- Adjusted diluted EPS of $1.21, up $0.13 sequentially and $1.00 compared to prior year.
Period-end loans increased $552.1 million or 1% sequentially.
- Paycheck Protection Program (PPP) loans increased $170.1 million and third-party consumer loan balances, including a prime auto purchase of $476 million, increased $503.2 million sequentially.
Core transaction deposits (non-interest bearing, NOW/savings, and money market deposits excluding public and brokered funds) increased $2.05 billion or 6% sequentially.
Total deposit costs of 0.22% down 6 bps sequentially due to ongoing repricing and product remixing.
Net interest income of $373.9 million declined $12.1 million sequentially as lower deposit costs and deployment of excess liquidity partially offset a lower day count, continued fixed-rate asset repricing, and accelerated prepayment activity.
- Net interest margin of 3.04% vs 3.12% sequentially.
Non-interest revenue declined $3.8 million sequentially and increased $7.1 million compared to prior year.
- Adjusted non-interest revenue increased $0.6 million sequentially as broad-based growth helped offset normalization of net mortgage revenue.
Non-interest expense declined $35.4 million sequentially and $9.1 million compared to prior year.
- Adjusted non-interest expense declined $8.5 million sequentially led by reduction in professional fees, partially offset by seasonal increases in payroll taxes and benefits.
Reversal of provision for credit losses of $18.6 million, primarily from a more favorable economic outlook.
- Allowance for credit losses coverage ratio (to loans) of 1.58%, or 1.69% excluding PPP loans.
Credit quality metrics remain relatively stable with a net charge-off ratio of 0.21%; non-performing assets, non-performing loans, and past dues remained near prior cycle lows.
Preliminary CET1 ratio increased 8 bps sequentially to 9.74%, with strong core earnings helping offset a $1.20 billion increase in risk-weighted assets.
In April, executed share repurchases of approximately $10 million as part of the $200 million authorization for 2021.

First Quarter Summary

	Reported									Adjusted
(dollars in thousands)	1Q21			4Q20			1Q20			1Q21			4Q20			1Q20
Net income available to common shareholders	$	178,802		$	142,118		$	30,230		$	180,685		$	160,618		$	30,708
Diluted earnings per share	1.19			0.96			0.20			1.21			1.08			0.21
Total loans	38,805,101			38,252,984			38,258,024			N/A			N/A			N/A
Total deposits	47,368,951			46,691,571			39,826,585			N/A			N/A			N/A
Total FTE revenue	485,587			501,514			477,903			487,577			499,114			473,424
Return on avg assets	1.40		%	1.11		%	0.32		%	1.41		%	1.25		%	0.32		%
Return on avg common equity	15.77			12.31			2.75			15.93			13.91			2.79
Return on avg tangible common equity	17.85			14.00			3.34			18.04			15.79			3.39
Net interest margin	3.04			3.12			3.37			N/A			N/A			N/A
Efficiency ratio	55.01			60.32			57.81			54.19			54.60			56.72
NCO ratio	0.21			0.23			0.21			N/A			N/A			N/A
NPA ratio	0.50			0.50			0.50			N/A			N/A			N/A

"Our results in the first quarter of 2021 reflect strong financial performance as we continue to position the company for long-term growth," said Kessel Stelling, Synovus Chairman and CEO. "Solid earnings drove capital growth, core transaction deposits grew $2 billion from the previous quarter, credit quality remained strong, and our efficiency initiatives enabled additional investments in improving the customer experience. We continued to support our customers and communities through the Paycheck Protection Program in the first quarter, including approximately $1 billion in phase two fundings. As the economic recovery accelerates and Kevin Blair steps in as CEO, the energy and optimism among our team are high, and I have never been more confident in our future."

Kevin Blair, Synovus President and COO, said, "I'm honored for the opportunity to lead this exceptional team, and to build upon our strong foundation in driving growth as we deliver differentiated, value-adding solutions and advice to attract and build relationships with our clients."

Balance Sheet

Loans^*

(dollars in millions)	1Q21		4Q20		Linked Quarter Change		Linked Quarter % Change		1Q20		Year/Year Change			Year/Year % Change
Commercial & industrial	$	19,693.8	$	19,520.2	$	173.7	1	%	$	17,810.3	$	1,883.5		11	%
Commercial real estate	10,533.9		10,325.7		208.2		2		10,475.4		58.6			1
Consumer	8,577.3		8,407.1		170.2		2		9,972.3		(1,395.0		)	(14	)
Total loans	$	38,805.1	$	38,253.0	$	552.1	1	%	$	38,258.0	$	547.1		1	%

^*Amounts may not total due to rounding

Total loans ended the quarter at $38.81 billion, up $552.1 million or 1% sequentially.
Commercial and industrial (C&I) loan growth of $173.7 million sequentially.
- Total PPP loans increased by $170.1 million.
  - Phase 1 forgiveness of $711 million, or $687 million net of unearned, and Phase 2 fundings of $894 million, or $857 million net of unearned.
- C&I line utilization remains near historic lows ~40%.
CRE loans increased $208.2 million as the recovery in commercial real estate continues.
Consumer loans increased $170.2 million sequentially, with a prime auto portfolio purchase of $476 million partially offset by declines in consumer mortgages and HELOCs of $214.3 million and $105.4 million, respectively.

Deposits^*

(dollars in millions)	1Q21		4Q20		Linked Quarter Change			Linked Quarter % Change		1Q20		Year/Year Change			Year/Year % Change
Non-interest-bearing DDA	$	13,742.1	$	12,382.7	$	1,359.4		11	%	$	8,968.8	$	4,773.3		53	%
Interest-bearing DDA	5,841.7		5,674.4		167.3			3		4,617.4		1,224.4			27
Money market	13,943.7		13,541.2		402.5			3		10,255.0		3,688.7			36
Savings	1,277.0		1,156.2		120.8			10		949.5		327.6			35
Public funds	6,154.9		6,760.6		(605.7		)	(9	)	5,261.4		893.6			17
Time deposits	3,214.8		3,605.9		(391.2		)	(11	)	5,786.6		(2,571.9		)	(44	)
Brokered deposits	3,194.7		3,570.4		(375.7		)	(11	)	3,987.9		(793.3		)	(20	)
Total deposits	$	47,369.0	$	46,691.6	$	677.4		1	%	$	39,826.6	$	7,542.4		19	%

^*Amounts may not total due to rounding

Total deposits ended the quarter at $47.37 billion, up $677.4 million or 1% sequentially.
Core transaction deposits increased $2.05 billion or 6% sequentially.
- Broad-based growth in all categories including MMA, DDA, NOW, and savings supported declines in higher cost deposits.
Total deposit costs declined 6 bps to 0.22% sequentially.

Income Statement Summary^**

(in thousands, except per share data)	1Q21			4Q20		Linked Quarter Change			Linked Quarter % Change		1Q20		Year/Year Change			Year/Year % Change
Net interest income	$	373,857		$	385,932	$	(12,075	)	(3	)%	$	373,260	$	597		—	%
Non-interest revenue	110,956			114,761		(3,805		)	(3	)	103,857		7,099			7
Non-interest expense	267,134			302,498		(35,364		)	(12	)	276,279		(9,145		)	(3	)
(Reversal of) provision for credit losses	(18,575		)	11,066		(29,641		)	nm		158,722		(177,297		)	nm
Income before taxes	$	236,254		$	187,129	$	49,125		26	%	$	42,116	$	194,138		461	%
Income tax expense	49,161			36,720		12,441			34		3,595		45,566			nm
Preferred stock dividends	8,291			8,291		—			—		8,291		—			—
Net income available to common shareholders	$	178,802		$	142,118	$	36,684		26	%	$	30,230	$	148,572		491	%
Weighted average common shares outstanding, diluted	149,780			148,725		1,055			1	%	148,401		1,379			1	%
Diluted earnings per share	$	1.19		$	0.96	$	0.23		25		$	0.20	$	0.99		486
Adjusted diluted earnings per share	1.21			1.08		0.13			12		0.21		1.00			483

^**Amounts may not total due to rounding

Core Performance

Net interest income of $373.9 million in the first quarter, down $12.1 million sequentially as lower deposit costs and deployment of excess liquidity helped offset declines from continued fixed-rate repricing and accelerated prepayment activity.
- Net PPP fee accretion of $24.9 million, up $0.1 million sequentially.
- Net interest margin was 3.04%, down 8 bps sequentially.
Non-interest revenue decreased $3.8 million, or 3% sequentially, and increased $7.1 million, or 7% compared to prior year. Adjusted non-interest revenue increased $0.6 million, or 1% sequentially, and $13.6 million, or 14% compared to prior year.
- Broad-based growth including $3.2 million in capital markets income helped offset normalization of net mortgage revenue, which declined $2.1 million sequentially.
Non-interest expense decreased $35.4 million, or 12% sequentially. Adjusted non-interest expense decreased $8.5 million, or 3% sequentially.
- Seasonal increases in employment-related expenses such as payroll taxes and benefits more than offset by lower headcount and day count as well as lower professional fees associated with Synovus Forward and COVID/PPP.
Reversal of provision for credit losses of $18.6 million; allowance for credit losses coverage ratio (to loans) of 1.58%, or 1.69% excluding PPP loans.
Tax expense was $49.2 million, an increase of $12.4 million driven by higher taxable income.
- Effective tax rate of 20.81%.

Capital Ratios

	1Q21			4Q20		1Q20
Common equity Tier 1 capital (CET1) ratio	9.74	%	^*	9.66	%	8.70	%
Tier 1 capital ratio	10.99		^*	10.95		9.95
Total risk-based capital ratio	13.34		^*	13.42		12.29
Tier 1 leverage ratio	8.80		^*	8.50		8.92
Tangible common equity ratio	7.55			7.66		7.94

* Ratios are preliminary.

Capital

CET1 ratio improved 8 bps during the quarter to 9.74% as strong core performance helped offset a $1.20 billion increase in risk-weighted assets.
Total risk-based capital ratio of 13.34% declined 8 bps from the prior quarter following a reduction in the ACL.

First Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. EDT on April 20, 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 $55 billion in assets. Synovus provides commercial and retail banking, investment, and mortgage services through 288 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; our expectations regarding net interest income and net interest margin; 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; 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 FTE revenue; efficiency ratio-FTE; 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 FTE revenue and non-interest revenue exclusive of net investment securities gains (losses) and changes in the fair value of private equity investments, net. 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 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)	1Q21			4Q20			1Q20
Adjusted non-interest revenue
Total non-interest revenue	$	110,956		$	114,761		$	103,857
Add/subtract: Investment securities losses (gains), net	1,990			(2,337		)	(8,734		)
Subtract/add: Fair value (increase) decrease of private equity investments	—			(63		)	4,255
Adjusted non-interest revenue	$	112,946		$	112,361		$	99,378

Adjusted non-interest expense
Total non-interest expense	$	267,134		$	302,498		$	276,279
Subtract: Restructuring charges	(531		)	(18,068		)	(3,220		)
Subtract: Valuation adjustment to Visa derivative	—			(890		)	—
Subtract: Loss on early extinguishment of debt	—			(8,409		)	(1,904		)
Adjusted non-interest expense	$	266,603		$	275,131		$	271,155

Reconciliation of Non-GAAP Financial Measures, continued

(dollars in thousands)	1Q21			4Q20			1Q20
Total adjusted revenue and adjusted tangible efficiency ratio
Adjusted non-interest expense	$	266,603		$	275,131		$	271,155
Subtract: Amortization of intangibles	(2,379		)	(2,640		)	(2,640		)
Adjusted tangible non-interest expense	$	264,224		$	272,491		$	268,515

Net interest income	$	373,857		$	385,932		$	373,260
Add: Tax equivalent adjustment	774			821			786
Add: Total non-interest revenue	110,956			114,761			103,857
Total FTE revenue	485,587			501,514			477,903
Add/subtract: Investment securities losses (gains), net	1,990			(2,337		)	(8,734		)
Subtract/add: Fair value (increase) decrease of private equity investments	—			(63		)	4,255
Total adjusted revenue	$	487,577		$	499,114		$	473,424
Efficiency ratio-FTE	55.01		%	60.32		%	57.81		%
Adjusted tangible efficiency ratio	54.19			54.60			56.72

Adjusted return on average assets
Net income	$	187,093		$	150,409		$	38,521
Add: Restructuring charges	531			18,068			3,220
Add: Valuation adjustment to Visa derivative	—			890			—
Add: Loss on early extinguishment of debt	—			8,409			1,904
Add/subtract: Investment securities losses (gains), net	1,990			(2,337		)	(8,734		)
Subtract/add: Fair value (increase) decrease of private equity investments	—			(63		)	4,255
Subtract: Tax effect of adjustments ⁽¹⁾	(638		)	(6,467		)	(167		)
Adjusted net income	$	188,976		$	168,909		$	38,999
Net income annualized	$	758,766		$	598,366		$	154,931
Adjusted net income annualized	$	766,403		$	671,964		$	156,853
Total average assets	$	54,188,504		$	53,833,909		$	48,696,595
Return on average assets	1.40		%	1.11		%	0.32		%
Adjusted return on average assets	1.41			1.25			0.32


Adjusted net income available to common shareholders and adjusted diluted earnings per share
Net income available to common shareholders	$	178,802		$	142,118		$	30,230
Add: Restructuring charges	531			18,068			3,220
Add: Valuation adjustment to Visa derivative	—			890			—
Add: Loss on early extinguishment of debt	—			8,409			1,904
Add/subtract: Investment securities losses (gains), net	1,990			(2,337		)	(8,734		)
Subtract/add: Fair value (increase) decrease of private equity investments	—			(63		)	4,255
Subtract: Tax effect of adjustments ⁽¹⁾	(638		)	(6,467		)	(167		)
Adjusted net income available to common shareholders	$	180,685		$	160,618		$	30,708
Weighted average common shares outstanding, diluted	149,780			148,725			148,401
Diluted earnings per share	$	1.19		$	0.96		$	0.20
Adjusted diluted earnings per share	1.21			1.08			0.21

Reconciliation of Non-GAAP Financial Measures, continued

(dollars in thousands)	1Q21			4Q20			1Q20

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	$	178,802		$	142,118		$	30,230
Add: Restructuring charges	531			18,068			3,220
Add: Valuation adjustment to Visa derivative	—			890			—
Add: Loss on early extinguishment of debt	—			8,409			1,904
Add/subtract: Investment securities losses (gains), net	1,990			(2,337		)	(8,734		)
Subtract/add: Fair value (increase) decrease of private equity investments	—			(63		)	4,255
Subtract: Tax effect of adjustments ⁽¹⁾	(638		)	(6,467		)	(167		)
Adjusted net income available to common shareholders	$	180,685		$	160,618		$	30,708

Adjusted net income available to common shareholders annualized	$	732,778		$	638,980		$	123,507
Add: Amortization of intangibles, annualized net of tax	7,207			7,782			7,868
Adjusted net income available to common shareholders excluding amortization of intangibles annualized	$	739,985		$	646,762		$	131,375

Net income available to common shareholders annualized	$	725,141		$	565,382		$	121,584
Add: Amortization of intangibles, annualized net of tax	7,207			7,782			7,868
Net income available to common shareholders excluding amortization of intangibles annualized	$	732,348		$	573,164		$	129,452

Total average shareholders' equity less preferred stock	$	4,599,076		$	4,594,199		$	4,424,278
Subtract: Goodwill	(452,390		)	(452,390		)	(497,267		)
Subtract: Other intangible assets, net	(44,005		)	(46,511		)	(54,514		)
Total average tangible shareholders' equity less preferred stock	$	4,102,681		$	4,095,298		$	3,872,497
Return on average common equity	15.77		%	12.31		%	2.75		%
Adjusted return on average common equity	15.93			13.91			2.79
Return on average tangible common equity	17.85			14.00			3.34
Adjusted return on average tangible common equity	18.04			15.79			3.39

Reconciliation of Non-GAAP Financial Measures, continued

(dollars in thousands)	March 31, 2021			December 31, 2020			March 31, 2020

Tangible common equity ratio
Total assets	$	55,159,011		$	54,394,159		$	50,619,585
Subtract: Goodwill	(452,390		)	(452,390		)	(497,267		)
Subtract: Other intangible assets, net	(42,733		)	(45,112		)	(53,032		)
Tangible assets	$	54,663,888		$	53,896,657		$	50,069,286

Total shareholders' equity	$	5,161,717		$	5,161,334		$	5,065,205
Subtract: Goodwill	(452,390		)	(452,390		)	(497,267		)
Subtract: Other intangible assets, net	(42,733		)	(45,112		)	(53,032		)
Subtract: Preferred Stock, no par value	(537,145		)	(537,145		)	(537,145		)
Tangible common equity	$	4,129,449		$	4,126,687		$	3,977,761
Total shareholders' equity to total assets ratio	9.36		%	9.49		%	10.01		%
Tangible common equity ratio	7.55			7.66			7.94

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

Synovus

	INCOME STATEMENT DATA
	(Unaudited)

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

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

	Interest income	$	409,817		433,479	435,550		451,569	483,897		(15	)%
	Interest expense	35,960			47,547	58,560		75,003	110,637		(67	)

	Net interest income	373,857			385,932	376,990		376,566	373,260		—
	(Reversal of) provision for credit losses	(18,575		)	11,066	43,383		141,851	158,722		nm

	Net interest income after provision for credit losses	392,432			374,866	333,607		234,715	214,538		83

	Non-interest revenue:
	Service charges on deposit accounts	20,033			19,063	17,813		15,567	20,689		(3	)
	Fiduciary and asset management fees	17,954			17,242	15,885		14,950	15,174		18
	Card fees	11,996			11,743	10,823		9,186	10,950		10
	Brokerage revenue	12,974			11,794	10,604		9,984	12,398		5
	Mortgage banking income	22,315			24,426	31,229		23,530	12,227		83
	Capital markets income	7,505			4,352	5,690		6,050	11,243		(33	)
	Income from bank-owned life insurance	8,843			9,725	7,778		7,756	6,038		46
	Investment securities (losses)/gains, net	(1,990		)	2,337	(1,550	)	69,409	8,734		nm
	Gain on sale and fair value increase/(decrease) on private equity investments	—			63	260		8,707	(4,255	)	nm
	Other non-interest revenue	11,326			14,016	15,879		8,345	10,659		6

	Total non-interest revenue	110,956			114,761	114,411		173,484	103,857		7

	Non-interest expense:
	Salaries and other personnel expense	161,477			153,946	154,994		159,597	149,678		8
	Net occupancy, equipment, and software expense	41,134			44,183	41,554		41,727	42,194		(3	)
	Third-party processing and other services	20,032			20,799	21,827		22,666	22,700		(12	)
	Professional fees	9,084			17,541	13,377		15,305	10,675		(15	)
	FDIC insurance and other regulatory fees	5,579			6,288	6,793		6,851	5,278		6
	Amortization of intangibles	2,379			2,640	2,640		2,640	2,640		(10	)
	Goodwill impairment	—			—	44,877		—	—		nm
	Restructuring charges	531			18,068	2,882		2,822	3,220		nm
	Loss on early extinguishment of debt	—			8,409	154		—	1,904		nm
	Earnout liability adjustments	—			—	—		4,908	—		nm
	Other operating expenses	26,918			30,624	27,557		27,625	37,990		(29	)

	Total non-interest expense	267,134			302,498	316,655		284,141	276,279		(3	)

	Income before income taxes	236,254			187,129	131,363		124,058	42,116		461
	Income tax expense	49,161			36,720	39,789		30,866	3,595		nm

	Net income	187,093			150,409	91,574		93,192	38,521		386

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

	Net income available to common shareholders	$	178,802		142,118	83,283		84,901	30,230		491	%

	Net income per common share, basic	$	1.20		0.96	0.57		0.58	0.21		487	%

	Net income per common share, diluted	1.19			0.96	0.56		0.57	0.20		486

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

	Return on average assets *	1.40		%	1.11	0.69		0.71	0.32		108	bps
	Return on average common equity *	15.77			12.31	7.28		7.48	2.75		1,302

	Weighted average common shares outstanding, basic	148,467			147,744	147,314		147,288	147,311		1	%
	Weighted average common shares outstanding, diluted	149,780			148,725	147,976		147,733	148,401		1

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

Synovus


	BALANCE SHEET DATA	March 31, 2021			December 31, 2020			March 31, 2020

	(Unaudited)

	(In thousands, except share data)

	ASSETS
	Cash and due from banks	$	493,645		$	531,625		$	652,451
	Interest-bearing funds with Federal Reserve Bank	2,722,100			3,586,565			1,020,775
	Interest earning deposits with banks	23,969			20,944			20,717
	Federal funds sold and securities purchased under resale agreements	88,552			113,783			129,891
	Cash and cash equivalents	3,328,266			4,252,917			1,823,834

	Investment securities available for sale, at fair value	8,825,757			7,962,438			6,937,240
	Loans held for sale ($242,010, $216,647, and $119,841 measured at fair value, respectively)	993,887			760,123			119,841

	Loans, net of deferred fees and costs	38,805,101			38,252,984			38,258,024
	Allowance for loan losses	(563,214		)	(605,736		)	(493,452		)
	Loans, net	38,241,887			37,647,248			37,764,572

	Cash surrender value of bank-owned life insurance	1,054,475			1,049,373			1,031,544
	Premises, equipment and software, net	454,911			463,959			482,462
	Goodwill	452,390			452,390			497,267
	Other intangible assets, net	42,733			45,112			53,032
	Other assets	1,764,705			1,760,599			1,909,793
	Total assets	$	55,159,011		$	54,394,159		$	50,619,585

	LIABILITIES AND SHAREHOLDERS' EQUITY
	Liabilities:
	Deposits:
	Non-interest-bearing deposits	$	14,660,287		$	13,477,854		$	9,659,451
	Interest-bearing deposits	32,708,664			33,213,717			30,167,134

	Total deposits	47,368,951			46,691,571			39,826,585

	Federal funds purchased and securities sold under repurchase agreements	293,659			227,922			312,776
	Other short-term borrowings	—			7,717			1,175,000
	Long-term debt	1,202,825			1,202,494			3,152,339
	Other liabilities	1,131,859			1,103,121			1,087,680
	Total liabilities	49,997,294			49,232,825			45,554,380

	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 168,978,380, 168,132,522, and 167,359,689; outstanding 148,888,513, 148,039,495, and 147,266,662	168,978			168,133			167,360
	Additional paid-in capital	3,864,281			3,851,208			3,821,357
	Treasury stock, at cost – 20,089,867, 20,093,027, and 20,093,027 shares	(731,690		)	(731,806		)	(731,806		)
	Accumulated other comprehensive income, net	15,278			158,635			256,911
	Retained earnings	1,307,725			1,178,019			1,014,238
	Total shareholders' equity	5,161,717			5,161,334			5,065,205
	Total liabilities and shareholders' equity	$	55,159,011		$	54,394,159		$	50,619,585

Synovus
	AVERAGE BALANCES AND YIELDS/RATES⁽¹⁾
	(Unaudited)	2021			2020
	(Dollars in thousands)	2021			2020

		First			Fourth		Third		Second		First
		Quarter			Quarter		Quarter		Quarter		Quarter
	Interest Earning Assets
	Investment securities^{(2) (4)}	$	8,437,563		7,493,822		7,227,400		6,618,533		6,680,047
	Yield		1.40	%	2.07		2.39		2.72		3.09
	Trading account assets ⁽⁵⁾	$	3,063		8,496		5,391		6,173		6,306
	Yield		2.81	%	1.03		1.69		2.19		2.70
	Commercial loans ^{(3) (4)}	$	29,844,491		30,363,102		30,730,135		30,236,919		27,607,343
	Yield		3.95	%	3.96		3.80		3.95		4.57
	Consumer loans ⁽³⁾	$	8,367,776		8,521,449		9,032,437		9,899,172		9,985,702
	Yield		3.98	%	4.00		4.08		4.34		4.60
	Allowance for loan losses	$	(599,872	)	(595,547	)	(591,098	)	(498,545	)	(368,033	)
	Loans, net ⁽³⁾	$	37,612,395		38,289,004		39,171,474		39,637,546		37,225,012
	Yield		4.02	%	4.03		3.92		4.08		4.62
	Mortgage loans held for sale	$	246,962		309,278		244,952		221,157		86,415
	Yield		2.68	%	2.74		2.92		3.09		3.67
	Other loans held for sale	$	660,753		544,301		493,940		19,246		—
	Yield		2.91	%	2.81		3.61		4.19		—
	Federal funds sold, due from Federal Reserve Bank, and other short-term investments	$	2,838,021		2,716,645		1,265,880		1,709,086		652,130
	Yield		0.10	%	0.10		0.11		0.11		1.02
	Federal Home Loan Bank and Federal Reserve Bank Stock ⁽⁵⁾	$	157,657		162,537		200,923		247,801		284,082
	Yield		1.69	%	2.64		2.73		3.60		3.38
	Total interest earning assets	$	49,956,414		49,524,083		48,609,960		48,459,542		44,933,992
	Yield		3.32	%	3.49		3.58		3.75		4.33
	Interest-Bearing Liabilities
	Interest-bearing demand deposits	$	8,570,753		8,531,415		7,789,095		7,260,940		6,445,986
	Rate		0.14	%	0.16		0.19		0.21		0.51
	Money Market accounts	$	15,348,916		14,411,860		13,272,972		12,238,479		11,548,014
	Rate		0.23	%	0.26		0.36		0.46		1.00
	Savings deposits	$	1,219,288		1,147,667		1,114,956		1,036,024		926,822
	Rate		0.02	%	0.01		0.02		0.02		0.05
	Time deposits under $100,000	$	1,161,306		1,239,592		1,379,923		1,621,943		1,761,741
	Rate		0.56	%	0.74		1.03		1.43		1.64
	Time deposits over $100,000	$	2,993,996		3,302,959		3,863,821		4,772,555		5,051,705
	Rate		0.74	%	1.03		1.44		1.80		2.04
	Other brokered deposits	$	1,950,582		1,978,393		1,912,114		1,998,571		1,376,669
	Rate		0.20	%	0.23		0.23		0.25		1.42
	Brokered time deposits	$	1,418,751		1,795,982		2,232,940		2,244,429		2,166,496
	Rate		1.50	%	1.60		1.59		1.86		2.11
	Total interest-bearing deposits	$	32,663,592		32,407,868		31,565,821		31,172,941		29,277,433
	Rate		0.31	%	0.39		0.54		0.73		1.18
	Federal funds purchased and securities sold under repurchase agreements	$	209,448		174,316		180,342		250,232		167,324
	Rate		0.07	%	0.07		0.09		0.12		0.30
	Other short-term borrowings	$	—		—		46,739		550,000		1,384,362
	Rate		—	%	—		1.12		1.23		1.66
	Long-term debt	$	1,202,613		1,552,791		2,234,665		2,834,188		2,678,651
	Rate		3.63	%	3.96		2.71		2.36		2.78
	Total interest-bearing liabilities	$	34,075,653		34,134,975		34,027,567		34,807,361		33,507,770
	Rate		0.42	%	0.55		0.68		0.86		1.30
	Non-interest-bearing demand deposits	$	13,791,286		13,566,112		12,773,676		11,923,534		9,409,774
	Cost of funds		0.30	%	0.40		0.50		0.65		1.04
	Effective cost of funds⁽⁶⁾		0.28	%	0.37		0.48		0.62		0.96
	Net interest margin		3.04	%	3.12		3.10		3.13		3.37
	Taxable equivalent adjustment⁽⁴⁾	$	774		821		956		861		786

	⁽¹⁾Yields and rates are annualized.
	⁽²⁾Excludes net unrealized gains and losses.
	⁽³⁾Average loans are shown net of unearned income. Non-performing loans are included.
	⁽⁴⁾Reflects taxable-equivalent adjustments, using the statutory federal income tax rate of 21%, in adjusting interest on tax-exempt loans and investment securities to a taxable-equivalent basis.
	⁽⁵⁾ Included as a component of other assets on the consolidated balance sheet.
	⁽⁶⁾Includes the impact of non-interest-bearing capital funding sources.

Synovus
LOANS OUTSTANDING BY TYPE
(Unaudited)	Total Loans		Total Loans		Linked Quarter		Total Loans		Year/Year
(Dollars in thousands)

Loan Type	March 31, 2021		December 31, 2020		% Change		March 31, 2020		% Change
Commercial, Financial, and Agricultural	$	12,662,329	$	12,410,152	2	%	$	10,902,455	16	%
Owner-Occupied	7,031,505		7,110,016		(1	)	6,907,893		2
Total Commercial & Industrial	19,693,834		19,520,168		1		17,810,348		11
Multi-Family	2,220,939		2,190,534		1		2,103,566		6
Hotels	1,462,370		1,442,242		1		1,311,614		11
Office Buildings	2,280,053		2,207,744		3		2,211,525		3
Shopping Centers	1,662,158		1,644,519		1		1,778,627		(7	)
Warehouses	692,267		700,050		(1	)	759,858		(9	)
Other Investment Property	1,017,938		918,290		11		859,726		18
Total Investment

Synovus Announces Earnings for the First Quarter 2021