Synovus announces earnings for the first quarter 2024

Diluted earnings per share of $0.78 vs. $1.32 in 1Q23

Adjusted diluted earnings per share of $0.79 vs. $1.33 in 1Q23

$12.8 million FDIC Special Assessment reduced 1Q24 reported and adjusted EPS by $0.07

Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended March 31, 2024.

“Our first quarter results demonstrate tangible progress on our strategic priorities, including key commercial category loan and core deposit growth, client non-interest revenue growth and excellent operating expense control. We remain focused on raising the bar on service and deepening client relationships, all while building a more risk-resilient bank, which was evidenced by our highest common equity tier 1 capital ratios in several years and an over 30% decline in wholesale funding versus last year," said Synovus Chairman, CEO and President Kevin Blair.

First Quarter 2024 Highlights

Net income available to common shareholders was $114.8 million, or $0.78 per diluted share, compared to $60.6 million or $0.41 in the fourth quarter 2023 and $193.9 million or $1.32 in first quarter 2023.
An incremental $12.8 million FDIC Special Assessment reduced first quarter 2024 reported and adjusted EPS by $0.07. A $51.0 million FDIC Special Assessment impacted fourth quarter 2023 reported and adjusted EPS by $0.26.
Pre-provision net revenue of $215.0 million increased $79.2 million, or 58%, sequentially and was down $77.0 million, or 26%, compared to first quarter 2023.
Net interest income declined $18.4 million, or 4%, compared to the prior quarter and was down $61.9 million, or 13%, compared to first quarter 2023, primarily attributable to a decline in average earnings assets and higher funding costs. Net interest margin was 3.04% which compressed from the fourth quarter 2023 as higher deposit costs more than offset an increase in earning asset yields.
Period-end loans declined $94.6 million from the fourth quarter 2023 as core commercial lending growth was more than offset by soft loan demand, higher loan paydowns and strategic declines in certain loan categories such as non-relationship syndicated lending and third-party consumer lending. Commercial and industrial loans increased $132.8 million or 1% from the prior quarter and $131.1 million or 1% from first quarter 2023.
Period-end core deposits ended the quarter at $44.9 billion, an increase of $165.1 million sequentially primarily as a result of time deposit growth, partially offset by a decline in non-interest bearing deposits. Total deposit costs increased 17 basis points from the fourth quarter 2023 to 2.67%.
Non-interest revenue of $118.9 million increased $67.4 million, or 131%, sequentially and declined $14.2 million, or 11%, compared to first quarter 2023. Adjusted non-interest revenue of $116.6 million fell $9.6 million, or 8%, sequentially and declined $1.0 million, or 1%, compared to the first quarter 2023. Year-over-year pressure was the result of the consumer checking program changes and GLOBALT divestiture in 2023. The company experienced year-over-year growth in core banking fees and commercial sponsorship income.
On a sequential basis, non-interest expense of $322.7 million declined 9% while adjusted non-interest expense declined 10% to $318.9 million. Compared to the prior year, non-interest expense and adjusted non-interest expense was flat and increased 5%, respectively. All comparisons were significantly impacted by the FDIC Special Assessments in fourth quarter 2023 and first quarter 2024. Headcount declined 1% sequentially and 7% year over year. Excluding the first quarter 2024 FDIC Special Assessment, adjusted non-interest expense was relatively stable compared to first quarter 2023.
Provision for credit losses of $54.0 million increased 19% sequentially and compares to $32.2 million in first quarter 2023. The allowance for credit losses ratio (to loans) of 1.26% was up 2 basis points from the fourth quarter 2023.
The non-performing loan and asset ratios were slightly higher at 0.81% and 0.86%, respectively; the net charge-off ratio for the quarter was 0.41%, and total past dues were 0.13% of total loans outstanding. Approximately 0.17% of first quarter 2024 net charge-offs were attributable to an $18 million loss from a commercial and industrial loan relationship that is expected to be resolved later this month.
The preliminary CET1 ratio rose sequentially to 10.38% as core earnings accretion more than offset the impact of $29.9 million in common stock repurchases during the first quarter 2024.

First Quarter Summary

	Reported									Adjusted
(dollars in thousands)	1Q24			4Q23			1Q23			1Q24			4Q23			1Q23
Net income available to common shareholders	$	114,822		$	60,645		$	193,868		$	115,973		$	116,901		$	195,276
Diluted earnings per share		0.78			0.41			1.32			0.79			0.80			1.33
Total revenue		537,734			488,682			613,877			536,745			564,593			599,469
Total loans		43,309,877			43,404,490			44,044,939			N/A			N/A			N/A
Total deposits		50,580,242			50,739,185			49,953,936			N/A			N/A			N/A
Return on avg assets		0.85	%		0.47	%		1.36	%		0.85	%		0.84	%		1.37	%
Return on avg common equity		10.2			5.9			19.2			10.3			11.3			19.4
Return on avg tangible common equity		11.7			7.0			21.9			11.8			13.3			22.1
Net interest margin		3.04	%		3.11	%		3.43	%		N/A			N/A			N/A
Efficiency ratio-TE ⁽¹⁾⁽²⁾		59.87			72.03			52.33			58.88			61.97			50.48
NCO ratio-QTD		0.41			0.38			0.17			N/A			N/A			N/A
NPA ratio		0.86			0.66			0.41			N/A			N/A			N/A

(1) Taxable equivalent

(2) Adjusted tangible efficiency ratio

N/A - not applicable

Balance Sheet

Loans ^*

(dollars in millions)	1Q24		4Q23		Linked Quarter Change			Linked Quarter % Change		1Q23		Year/Year Change			Year/Year % Change
Commercial & industrial	$	22,731.3	$	22,598.5	$	132.8		1	%	$	22,600.2	$	131.1		1	%
Commercial real estate		12,194.0		12,316.8		(122.7	)	(1	)		12,996.8		(802.7	)	(6	)
Consumer		8,384.6		8,489.2		(104.7	)	(1	)		8,448.0		(63.4	)	(1	)
Total loans	$	43,309.9	$	43,404.5	$	(94.6	)	—	%	$	44,044.9	$	(735.0	)	(2	)%

*Amounts may not total due to rounding

Deposits ^*

(dollars in millions)	1Q24		4Q23		Linked Quarter Change			Linked Quarter % Change		1Q23		Year/Year Change			Year/Year % Change
Non-interest-bearing DDA	$	11,515.4	$	11,801.2	$	(285.8	)	(2	)%	$	13,827.6	$	(2,312.2	)	(17	)%
Interest-bearing DDA		6,478.8		6,541.0		(62.1	)	(1	)		5,837.0		641.8		11
Money market		10,712.7		10,819.7		(107.0	)	(1	)		11,780.0		(1,067.2	)	(9	)
Savings		1,045.1		1,062.6		(17.5	)	(2	)		1,312.7		(267.6	)	(20	)
Public funds		7,270.4		7,349.5		(79.1	)	(1	)		6,888.2		382.2		6
Time deposits		7,838.9		7,122.2		716.7		10			4,060.3		3,778.6		93
Brokered deposits		5,718.9		6,043.0		(324.1	)	(5	)		6,248.3		(529.3	)	(8	)
Total deposits	$	50,580.2	$	50,739.2	$	(158.9	)	—	%	$	49,953.9	$	626.3		1	%

*Amounts may not total due to rounding

Income Statement Summary ^**

(in thousands, except per share data)	1Q24			4Q23			Linked Quarter Change			Linked Quarter % Change		1Q23			Year/Year Change			Year/Year % Change
Net interest income	$	418,846		$	437,214		$	(18,368	)	(4	)%	$	480,751		$	(61,905	)	(13	)%
Non-interest revenue		118,888			51,468			67,420		131			133,126			(14,238	)	(11	)
Non-interest expense		322,741			352,858			(30,117	)	(9	)		321,852			889		—
Provision for (reversal of) credit losses		53,980			45,472			8,508		19			32,154			21,826		68
Income before taxes	$	161,013		$	90,352		$	70,661		78	%	$	259,871		$	(98,858	)	(38	)%
Income tax expense		36,943			20,779			16,164		78			57,712			(20,769	)	(36	)
Net income		124,070			69,573			54,497		78			202,159			(78,089	)	(39	)
Less: Net income (loss) attributable to noncontrolling interest		(437	)		(768	)		331		(43	)		—			(437	)	NM
Net income attributable to Synovus Financial Corp.		124,507			70,341			54,166		77			202,159			(77,652	)	(38	)
Less: Preferred stock dividends		9,685			9,696			(11	)	—			8,291			1,394		17
Net income available to common shareholders	$	114,822		$	60,645		$	54,177		89	%	$	193,868		$	(79,046	)	(41	)%
Weighted average common shares outstanding, diluted		147,122			146,877			245		—	%		146,727			395		—	%
Diluted earnings per share	$	0.78		$	0.41		$	0.37		90		$	1.32		$	(0.54	)	(41	)
Adjusted diluted earnings per share		0.79			0.80			(0.01	)	(1	)		1.33			(0.54	)	(41	)
Effective tax rate		22.94	%		23.00	%							22.21	%

** Amounts may not total due to rounding

NM - not meaningful

Capital Ratios

	1Q24			4Q23		1Q23
Common equity Tier 1 capital (CET1) ratio	10.38	%	^*	10.22	%	9.77	%
Tier 1 capital ratio	11.44		^*	11.28		10.81
Total risk-based capital ratio	13.31		^*	13.07		12.72
Tier 1 leverage ratio	9.62		^*	9.49		9.14
Tangible common equity ratio	6.67			6.84		6.12

* Ratios are preliminary.

First Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call at 8:30 a.m. ET on April 18, 2024. 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 $60 billion in assets. Synovus provides commercial and consumer 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, capital markets and international banking. Synovus has 246 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 X , formerly known as 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, 2023, 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, non-interest expense; 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 revenue; efficiency ratio-TE; net income available to common shareholders; diluted earnings per share; return on average assets; return on average common equity; and the ratio of total Synovus Financial Corp. 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. Adjusted non-interest revenue and adjusted revenue are measures used by management to evaluate non-interest revenue and total revenue exclusive of fair value adjustment on non-qualified deferred compensation and other items not indicative of ongoing operations that could impact period-to-period comparisons. 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)	1Q24			4Q23			1Q23

Adjusted non-interest revenue
Total non-interest revenue	$	118,888		$	51,468		$	133,126
Investment securities (gains) losses, net		—			77,748			(1,030	)
Recovery of NPA		—			—			(13,126	)
Fair value adjustment on non-qualified deferred compensation		(2,299	)		(3,053	)		(1,371	)
Adjusted non-interest revenue	$	116,589		$	126,163		$	117,599

Adjusted non-interest expense
Total non-interest expense	$	322,741		$	352,858		$	321,852
(Loss) gain on other loans held for sale		—			—			(16,750	)
Gain (loss) on early extinguishment of debt		—			4,497			—
Restructuring (charges) reversals		(1,524	)		(1,231	)		733
Fair value adjustment on non-qualified deferred compensation		(2,299	)		(3,053	)		(1,371	)
Adjusted non-interest expense	$	318,918		$	353,071		$	304,464


Reconciliation of Non-GAAP Financial Measures, continued

(dollars in thousands)	1Q24			4Q23			1Q23
Adjusted revenue and tangible efficiency ratio
Adjusted non-interest expense	$	318,918		$	353,071		$	304,464
Amortization of intangibles		(2,907	)		(3,168	)		(1,857	)
Adjusted tangible non-interest expense	$	316,011		$	349,903		$	302,607

Net interest income	$	418,846		$	437,214		$	480,751
Total non-interest revenue		118,888			51,468			133,126
Total revenue	$	537,734		$	488,682		$	613,877
Tax equivalent adjustment		1,310			1,216			1,119
Total TE revenue		539,044			489,898			614,996
Recovery of NPA		—			—			(13,126	)
Investment securities losses (gains), net		—			77,748			(1,030	)
Fair value adjustment on non-qualified deferred compensation		(2,299	)		(3,053	)		(1,371	)
Adjusted revenue	$	536,745		$	564,593		$	599,469
Efficiency ratio-TE		59.87	%		72.03	%		52.33	%
Adjusted tangible efficiency ratio		58.88			61.97			50.48

Adjusted return on average assets
Net income	$	124,070		$	69,573		$	202,159
Recovery of NPA		—			—			(13,126	)
Loss (gain) on other loans held for sale		—			—			16,750
(Gain) loss on early extinguishment of debt		—			(4,497	)		—
Restructuring charges (reversals)		1,524			1,231			(733	)
Investment securities losses (gains), net		—			77,748			(1,030	)
Tax effect of adjustments ⁽¹⁾		(373	)		(18,226	)		(453	)
Adjusted net income	$	125,221		$	125,829		$	203,567
Net income annualized	$	499,007		$	276,023		$	819,867
Adjusted net income annualized	$	503,636		$	499,213		$	825,577
Total average assets	$	59,022,231		$	59,164,065		$	60,133,561
Return on average assets		0.85	%		0.47	%		1.36	%
Adjusted return on average assets		0.85			0.84			1.37


Adjusted net income available to common shareholders and adjusted diluted earnings per share
Net income available to common shareholders	$	114,822		$	60,645		$	193,868
Recovery of NPA		—			—			(13,126	)
Loss (gain) on other loans held for sale		—			—			16,750
(Gain) loss on early extinguishment of debt		—			(4,497	)		—
Restructuring charges (reversals)		1,524			1,231			(733	)
Investment securities losses (gains), net		—			77,748			(1,030	)
Tax effect of adjustments ⁽¹⁾		(373	)		(18,226	)		(453	)
Adjusted net income available to common shareholders	$	115,973		$	116,901		$	195,276
Weighted average common shares outstanding, diluted		147,122			146,877			146,727
Diluted earnings per share	$	0.78		$	0.41		$	1.32
Adjusted diluted earnings per share		0.79			0.80			1.33
⁽¹⁾ An assumed marginal tax rate of 24.5% for 1Q24 and 4Q23 and 24.3% for 1Q23 was applied.

Reconciliation of Non-GAAP Financial Measures, continued

(dollars in thousands)	1Q24			4Q23			1Q23
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	$	114,822		$	60,645		$	193,868
Recovery of NPA		—			—			(13,126	)
Loss (gain) on other loans held for sale		—			—			16,750
(Gain) loss on early extinguishment of debt		—			(4,497	)		—
Restructuring charges (reversals)		1,524			1,231			(733	)
Investment securities losses (gains), net		—			77,748			(1,030	)
Tax effect of adjustments ⁽¹⁾		(373	)		(18,226	)		(453	)
Adjusted net income available to common shareholders	$	115,973		$	116,901		$	195,276

Adjusted net income available to common shareholders annualized	$	466,441		$	463,792		$	791,953
Amortization of intangibles, tax effected, annualized		8,831			9,493			5,699
Adjusted net income available to common shareholders excluding amortization of intangibles annualized	$	475,272		$	473,285		$	797,652

Net income available to common shareholders annualized	$	461,812		$	240,602		$	786,242
Amortization of intangibles, tax effected, annualized		8,831			9,493			5,699
Net income available to common shareholders excluding amortization of intangibles annualized	$	470,643		$	250,095		$	791,941

Total average Synovus Financial Corp. shareholders' equity less preferred stock	$	4,542,616		$	4,090,163		$	4,088,777
Average goodwill		(480,440	)		(479,858	)		(452,390	)
Average other intangible assets, net		(44,497	)		(47,502	)		(26,245	)
Total average Synovus Financial Corp. tangible shareholders' equity less preferred stock	$	4,017,679		$	3,562,803		$	3,610,142
Return on average common equity		10.2	%		5.9	%		19.2	%
Adjusted return on average common equity		10.3			11.3			19.4
Return on average tangible common equity		11.7			7.0			21.9
Adjusted return on average tangible common equity		11.8			13.3			22.1
⁽¹⁾ An assumed marginal tax rate of 24.5% for 1Q24 and 4Q23 and 24.3% for 1Q23 was applied.



(dollars in thousands)	March 31, 2024			December 31, 2023			March 31, 2023

Tangible common equity ratio
Total assets	$	59,835,120		$	59,809,534		$	61,840,025
Goodwill		(480,440	)		(480,440	)		(452,390	)
Other intangible assets, net		(43,021	)		(45,928	)		(25,267	)
Tangible assets	$	59,311,659		$	59,283,166		$	61,362,368

Total Synovus Financial Corp. shareholders’ equity	$	5,017,918		$	5,119,993		$	4,770,130
Goodwill		(480,440	)		(480,440	)		(452,390	)
Other intangible assets, net		(43,021	)		(45,928	)		(25,267	)
Preferred Stock, no par value		(537,145	)		(537,145	)		(537,145	)
Tangible common equity	$	3,957,312		$	4,056,480		$	3,755,328
Total Synovus Financial Corp. shareholders’ equity to total assets ratio		8.39	%		8.56	%		7.71	%
Tangible common equity ratio		6.67			6.84			6.12

Amounts may not total due to rounding

Synovus

INCOME STATEMENT DATA
(Unaudited)

(Dollars in thousands, except per share data)	2024			2023								First Quarter

	First Quarter			Fourth Quarter		Third Quarter		Second Quarter		First Quarter		'24 vs '23
	First Quarter			Fourth Quarter		Third Quarter		Second Quarter		First Quarter		% Change

Interest income	$	782,710		788,297		786,039		759,143		716,879		9	%
Interest expense		363,864		351,083		342,880		303,612		236,128		54

Net interest income		418,846		437,214		443,159		455,531		480,751		(13	)
Provision for (reversal of) credit losses		53,980		45,472		72,572		38,881		32,154		68

Net interest income after provision for credit losses		364,866		391,742		370,587		416,650		448,597		(19	)

Non-interest revenue:
Service charges on deposit accounts		21,813		22,260		21,385		23,477		22,974		(5	)
Fiduciary and asset management fees		19,013		18,149		20,205		20,027		19,696		(3	)
Card fees		19,486		20,872		18,602		17,059		15,824		23
Brokerage revenue		22,707		21,961		21,387		22,451		24,204		(6	)
Mortgage banking income		3,418		3,019		3,671		4,609		3,858		(11	)
Capital markets income		6,627		6,456		7,980		9,482		15,127		(56	)
Income from bank-owned life insurance		7,347		10,324		6,965		6,878		7,262		1
Investment securities gains (losses), net		—		(77,748	)	—		—		1,030		nm
Recovery of NPA		—		—		—		—		13,126		nm
Other non-interest revenue		18,477		26,175		6,944		8,293		10,025		84

Total non-interest revenue		118,888		51,468		107,139		112,276		133,126		(11	)

Non-interest expense:
Salaries and other personnel expense		188,521		176,712		179,741		183,001		188,924		—
Net occupancy, equipment, and software expense		46,808		48,146		45,790		42,785		42,860		9
Third-party processing and other services		20,258		21,717		21,439		21,659		21,833		(7	)
Professional fees		7,631		11,147		10,147		9,597		8,963		(15	)
FDIC insurance and other regulatory fees		23,819		61,470		11,837		11,162		10,268		132
Restructuring charges (reversals)		1,524		1,231		17,319		(110	)	(733	)	nm
Loss on other loans held for sale		—		—		30,954		2,360		16,750		nm
Other operating expenses		34,180		32,435		36,305		36,727		32,987		4

Total non-interest expense		322,741		352,858		353,532		307,181		321,852		—

Income before income taxes		161,013		90,352		124,194		221,745		259,871		(38	)
Income tax expense		36,943		20,779		27,729		47,801		57,712		(36	)

Net income		124,070		69,573		96,465		173,944		202,159		(39	)

Less: Net income (loss) attributable to noncontrolling interest		(437	)	(768	)	(630	)	(166	)	—		nm

Net income attributable to Synovus Financial Corp.		124,507		70,341		97,095		174,110		202,159		(38	)

Less: Preferred stock dividends		9,685		9,696		9,672		8,291		8,291		17

Net income available to common shareholders	$	114,822		60,645		87,423		165,819		193,868		(41	)%

Net income per common share, basic	$	0.78		0.41		0.60		1.13		1.33		(41	)%

Net income per common share, diluted		0.78		0.41		0.60		1.13		1.32		(41	)

Cash dividends declared per common share		0.38		0.38		0.38		0.38		0.38		—

Return on average assets *		0.85	%	0.47		0.64		1.15		1.36		(51) bps
Return on average common equity *		10.2		5.9		8.2		15.5		19.2		(900	)

Weighted average common shares outstanding, basic		146,430		146,372		146,170		146,113		145,799		—	%
Weighted average common shares outstanding, diluted		147,122		146,877		146,740		146,550		146,727		—

nm - not meaningful
bps - basis points
* - ratios are annualized
Amounts may not total due to rounding

Synovus

BALANCE SHEET DATA	March 31, 2024			December 31, 2023			March 31, 2023

(Unaudited)

(In thousands, except share data)

ASSETS
Interest-earning deposits with banks and other cash and cash equivalents	$	2,379,778		$	2,414,103		$	3,329,882
Federal funds sold and securities purchased under resale agreements		43,722			37,323			35,518
Cash, cash equivalents, and restricted cash		2,423,500			2,451,426			3,365,400

Investment securities available for sale, at fair value		9,694,515			9,788,662			9,732,618
Loans held for sale (includes $36,698, $47,338 and $44,400 measured at fair value, respectively)		130,586			52,768			669,447

Loans, net of deferred fees and costs		43,309,877			43,404,490			44,044,939
Allowance for loan losses		(492,661	)		(479,385	)		(457,010	)
Loans, net		42,817,216			42,925,105			43,587,929

Cash surrender value of bank-owned life insurance		1,119,379			1,112,030			1,094,072
Premises, equipment, and software, net		375,315			365,851			367,089
Goodwill		480,440			480,440			452,390
Other intangible assets, net		43,021			45,928			25,267
Other assets		2,751,148			2,587,324			2,545,813
Total assets	$	59,835,120		$	59,809,534		$	61,840,025

LIABILITIES AND EQUITY
Liabilities:
Deposits:
Non-interest-bearing deposits	$	12,042,353		$	12,507,616		$	14,642,677
Interest-bearing deposits		38,537,889			38,231,569			35,311,259

Total deposits		50,580,242			50,739,185			49,953,936

Federal funds purchased and securities sold under repurchase agreements		128,244			189,074			195,695
Other short-term borrowings		252,469			3,496			253,152
Long-term debt		2,031,735			1,932,534			5,146,252
Other liabilities		1,800,794			1,801,097			1,520,860
Total liabilities		54,793,484			54,665,386			57,069,895

Equity:
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 171,873,265, 171,360,188 and 170,713,864 respectively; outstanding 146,418,407, 146,705,330 and 146,059,006 respectively		171,873			171,360			170,714
Additional paid-in capital		3,957,576			3,955,819			3,925,449
Treasury stock, at cost; 25,454,858, 24,654,858 and 24,654,858 shares, respectively		(974,499	)		(944,484	)		(944,484	)
Accumulated other comprehensive income (loss), net		(1,248,194	)		(1,117,073	)		(1,289,327	)
Retained earnings		2,574,017			2,517,226			2,370,633
Total Synovus Financial Corp. shareholders’ equity		5,017,918			5,119,993			4,770,130
Noncontrolling interest in subsidiary		23,718			24,155			—
Total equity		5,041,636			5,144,148			4,770,130
Total liabilities and equity	$	59,835,120		$	59,809,534		$	61,840,025

Synovus
AVERAGE BALANCES, INTEREST, AND YIELDS/RATES
(Unaudited)
	First Quarter 2024							Fourth Quarter 2023							First Quarter 2023
(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)}	$	34,943,797		$	583,459	6.72	%	$	35,106,156		$	590,588	6.67	%	$	35,030,809		$	526,529	6.10	%
Consumer loans ^{(1) (2)}		8,434,105			109,566	5.21			8,491,244			109,509	5.14			8,762,631			104,147	4.78
Less: Allowance for loan losses		(481,146	)		—	—			(480,332	)		—	—			(445,192	)		—	—
Loans, net		42,896,756			693,025	6.49			43,117,068			700,097	6.45			43,348,248			630,676	5.89
Investment securities available for sale		11,148,242			71,906	2.58			11,164,487			65,176	2.33			11,293,958			61,054	2.16
Trading account assets		11,567			65	2.25			13,067			215	6.59			11,338			124	4.39
Other earning assets ⁽⁴⁾		1,218,090			16,173	5.25			1,463,176			19,689	5.26			1,513,800			17,212	4.55
FHLB and Federal Reserve Bank stock		187,825			2,273	4.84			187,015			3,536	7.56			306,935			3,355	4.37
Mortgage loans held for sale		29,773			495	6.65			39,024			696	7.14			36,497			566	6.20
Other loans held for sale		18,465			83	1.77			8,044			104	5.06			443,690			5,011	4.52
Total interest earning assets		55,510,718			784,020	5.68	%		55,991,881			789,513	5.59	%		56,954,466			717,998	5.11	%
Cash and due from banks		532,624							522,986							643,502
Premises and equipment		370,376							366,647							370,275
Other real estate		61							—							—
Cash surrender value of bank-owned life insurance		1,114,703							1,108,766							1,091,080
Other assets ⁽⁵⁾		1,493,749							1,173,785							1,074,238
Total assets	$	59,022,231						$	59,164,065						$	60,133,561
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing demand deposits	$	10,590,340			65,415	2.48	%	$	10,422,286			58,588	2.23	%	$	9,088,533			23,218	1.04	%
Money market accounts		12,826,385			103,129	3.23			13,053,781			103,211	3.14			14,397,683			72,618	2.05
Savings deposits		1,057,087			287	0.11			1,098,914			275	0.10			1,370,173			211	0.06
Time deposits		7,902,850			86,493	4.40			7,198,229			75,462	4.16			3,601,288			21,496	2.42
Brokered deposits		5,737,445			77,342	5.42			6,069,055			81,444	5.32			5,553,970			56,392	4.12
Federal funds purchased and securities sold under repurchase agreements		113,558			648	2.26			93,854			350	1.46			133,360			670	2.01
Other short-term borrowings		71,775			955	5.26			2,672			51	7.50			1,677,519			18,994	4.53
Long-term debt		1,764,740			29,595	6.69			1,922,661			31,702	6.55			3,148,062			42,529	5.41
Total interest-bearing liabilities		40,064,180			363,864	3.65	%		39,861,452			351,083	3.49	%		38,970,588			236,128	2.46	%
Non-interest-bearing demand deposits		12,071,670							12,744,275							15,014,224
Other liabilities		1,782,659							1,906,686							1,522,827
Total equity		5,103,722							4,651,652							4,625,922
Total liabilities and equity	$	59,022,231						$	59,164,065						$	60,133,561
Net interest income and net interest margin, taxable equivalent ⁽⁶⁾				$	420,156	3.04	%				$	438,430	3.11	%				$	481,870	3.43	%
Less: taxable-equivalent adjustment					1,310							1,216							1,119
Net interest income				$	418,846						$	437,214						$	480,751

⁽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 2024 — $10.6 million, Fourth Quarter 2023 — $13.1 million, and First Quarter 2023 — $11.5 million.
⁽³⁾	Reflects taxable-equivalent adjustments, using the statutory federal tax rate of 21%, in adjusting interest on tax-exempt loans 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 $(1.36) billion, $(1.89) billion, and $(1.52) billion for the First Quarter 2024, Fourth Quarter 2023, and First Quarter 2023, 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)
(Dollars in thousands)
	Total Loans		Total Loans		Linked Quarter		Total Loans		Year/Year
Loan Type	March 31, 2024		December 31, 2023		% Change		March 31, 2023		% Change
Commercial, Financial, and Agricultural	$	14,616,902	$	14,459,345	1	%	$	14,201,398	3	%
Owner-Occupied		8,114,394		8,139,148	—			8,398,778	(3	)
Total Commercial & Industrial		22,731,296		22,598,493	1			22,600,176	1
Multi-Family		4,199,435		4,098,188	2			3,374,129	24
Hotels		1,790,505		1,803,102	(1	)		1,737,163	3
Office Buildings		1,852,208		1,891,587	(2	)		3,071,236	(40	)
Shopping Centers		1,302,754		1,319,049	(1	)		1,332,078	(2	)
Warehouses		871,662		854,475	2			1,020,921	(15	)
Other Investment Property		1,294,317		1,396,903	(7	)		1,441,303	(10	)
Total Investment Properties		11,310,881		11,363,304	—			11,976,830	(6	)
1-4 Family Construction		194,146		194,481	—			201,896	(4	)
1-4 Family Investment Mortgage		385,992		404,021	(4	)		394,754	(2	)
Total 1-4 Family Properties		580,138		598,502	(3	)		596,650	(3	)
Commercial Development		66,000		73,022	(10	)		63,004	5
Residential Development		72,024		79,961	(10	)		106,872	(33	)
Land Acquisition		164,976		201,969	(18	)		253,399	(35	)
Land and Development		303,000		354,952	(15	)		423,275	(28	)
Total Commercial Real Estate		12,194,019		12,316,758	(1	)		12,996,755	(6	)
Consumer Mortgages		5,384,602		5,411,723	(1	)		5,246,640	3
Home Equity		1,804,348		1,807,399	—			1,757,250	3
Credit Cards		180,663		194,141	(7	)		184,595	(2	)
Other Consumer Loans		1,014,949		1,075,976	(6	)		1,259,523	(19	)
Total Consumer		8,384,562		8,489,239	(1	)		8,448,008	(1	)
Total	$	43,309,877	$	43,404,490	—	%	$	44,044,939	(2	)%

NON-PERFORMING LOANS COMPOSITION
(Unaudited)
(Dollars in thousands)
	Total		Total				Total
	Non-performing Loans		Non-performing Loans		Linked Quarter		Non-performing Loans		Year/Year
Loan Type	March 31, 2024		December 31, 2023		% Change		March 31, 2023		% Change
Commercial, Financial, and Agricultural	$	192,693	$	89,870	114	%	$	94,196	105	%
Owner-Occupied		80,218		91,370	(12	)		25,591	213
Total Commercial & Industrial		272,911		181,240	51			119,787	128
Multi-Family		2,077		1,681	24			1,806	15
Office Buildings		7,630		35,338	(78	)		190	nm
Shopping Centers		547		641	(15	)		727	(25	)
Warehouses		188		196	(4	)		222	(15	)
Other Investment Property		1,784		1,914	(7	)		668	167
Total Investment Properties		12,226		39,770	(69	)		3,613	238
1-4 Family Investment Mortgage		2,300		3,056	(25	)		3,515	(35	)
Total 1-4 Family Properties		2,300		3,056	(25	)		3,515	(35	)
Residential Development		478		267	79			267	79
Land Acquisition		540		537	1			886	(39	)
Land and Development		1,018		804	27			1,153	(12	)
Total Commercial Real Estate		15,544		43,630	(64	)		8,281	88
Consumer Mortgages		42,563		46,108	(8	)		39,536	8
Home Equity		12,451		10,473	19			7,967	56
Other Consumer Loans		6,981		6,726	4			6,889	1
Total Consumer		61,995		63,307	(2	)		54,392	14
Total	$	350,450	$	288,177	22	%	$	182,460	92	%

Synovus

CREDIT QUALITY DATA
(Unaudited)
(Dollars in thousands)	2024			2023				First Quarter

	First			Fourth	Third	Second	First	'24 vs '23
	Quarter			Quarter	Quarter	Quarter	Quarter	% Change

Non-performing Loans (NPLs)	$	350,450		288,177	280,532	261,506	182,460	92	%
Other Real Estate and Other Assets		21,210		—	—	—	—	nm

Non-performing Assets (NPAs)		371,660		288,177	280,532	261,506	182,460	104

Allowance for Loan Losses (ALL)		492,661		479,385	477,532	471,238	457,010	8
Reserve for Unfunded Commitments		53,579		57,231	55,185	55,729	57,473	(7	)

Allowance for Credit Losses (ACL)		546,240		536,616	532,717	526,967	514,483	6

Net Charge-Offs - Quarter		44,356		41,574	66,822	26,396	18,550
Net Charge-Offs - YTD		44,356		153,342	111,768	44,946	18,550
Net Charge-Offs / Average Loans - Quarter ⁽¹⁾		0.41	%	0.38	0.61	0.24	0.17
Net Charge-Offs / Average Loans - YTD ⁽¹⁾		0.41		0.35	0.34	0.20	0.17
NPLs / Loans		0.81		0.66	0.64	0.59	0.41
NPAs / Loans, ORE and specific other assets		0.86		0.66	0.64	0.59	0.41
ACL/Loans		1.26		1.24	1.22	1.19	1.17
ALL/Loans		1.14		1.10	1.09	1.06	1.04

ACL/NPLs		155.87		186.21	189.90	201.51	281.97
ALL/NPLs		140.58		166.35	170.22	180.20	250.47

Past Due Loans over 90 days and Still Accruing	$	3,748		5,053	3,792	3,643	3,529	6
As a Percentage of Loans Outstanding		0.01	%	0.01	0.01	0.01	0.01

Total Past Due Loans and Still Accruing	$	54,814		59,099	54,974	84,946	55,053	—
As a Percentage of Loans Outstanding		0.13	%	0.14	0.13	0.19	0.12

⁽¹⁾ Ratio is annualized.



SELECTED CAPITAL INFORMATION ⁽¹⁾
(Unaudited)
(Dollars in thousands)
	March 31, 2024			December 31, 2023	March 31, 2023


Common Equity Tier 1 Capital Ratio		10.38	%	10.22	9.77
Tier 1 Capital Ratio		11.44		11.28	10.81
Total Risk-Based Capital Ratio		13.31		13.07	12.72
Tier 1 Leverage Ratio		9.62		9.49	9.14
Total Synovus Financial Corp. shareholders' equity as a Percentage of Total Assets		8.39		8.56	7.71
Tangible Common Equity Ratio ^{(2) (4)}		6.67		6.84	6.12
Book Value Per Common Share ⁽³⁾	$	30.60		31.24	28.98
Tangible Book Value Per Common Share ⁽²⁾		27.03		27.65	25.71

⁽¹⁾ Current quarter regulatory capital information is preliminary.
⁽²⁾ Excludes the carrying value of goodwill and other intangible assets from common equity and total assets.
⁽³⁾ Book Value Per Common Share consists of Total Synovus Financial Corp. shareholders’ equity less Preferred stock divided by total common shares outstanding.
⁽⁴⁾ See "Non-GAAP Financial Measures" for applicable reconciliation.