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Fair Value Accounting (Tables)
 12 Months Ended
Dec. 31, 2017
Fair Value Disclosures [Abstract]  
Financial Instruments Measured at Fair Value on Recurring Basis
The following table presents all financial instruments measured at fair value on a recurring basis as of December 31, 2017 and 2016, according to the valuation hierarchy included in ASC 820-10. For equity and debt securities, class was determined based on the nature and risks of the investments. Synovus did not have any transfers between levels for the years ended December 31, 2017 and 2016.
 







 
December 31, 2017
(in thousands)
Level 1
 
Level 2
 
Level 3
 
Total Assets and Liabilities at Fair Value
Assets
 
 
 
 
 
 
 
Trading securities:
 
 
 
 
 
 
 
U.S. Government agency securities
$
—

 
$
3,002

 
$
—

 
$
3,002

Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises
—

 
296

 
—

 
296

Other investments
522

 
—

 
—

 
522

Total trading securities
522

 
3,298

 
—

 
3,820

Mortgage loans held for sale
—

 
48,024

 
—

 
48,024

Investment securities available for sale:
 
 
 
 
 
 
 
U.S. Treasury securities
82,674

 
—

 
—

 
82,674

U.S. Government agency securities
—

 
10,862

 
—

 
10,862

Mortgage-backed securities issued by U.S. Government agencies
—

 
120,440

 
—

 
120,440

Mortgage-backed securities issued by U.S. Government sponsored enterprises
—

 
2,640,523

 
—

 
2,640,523

Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises
—

 
1,111,999

 
—

 
1,111,999

State and municipal securities
—

 
180

 
—

 
180

 Corporate debt and other securities(1)    
3,162

 
15,294

 
1,935

 
20,391

Total investment securities available for sale
85,836

 
3,899,298

 
1,935

 
3,987,069

Private equity investments
—

 
—

 
15,771

 
15,771

Mutual funds held in rabbi trusts
14,140

 
—

 
—

 
14,140

GGL/SBA loans servicing asset
—

 
—

 
4,101

 
4,101

Derivative assets:
 
 
 
 
 
 
 
Interest rate contracts
—

 
10,786

 
—

 
10,786

Mortgage derivatives(2)
—

 
936

 
—

 
936

Total derivative assets
—

 
11,722

 
—

 
11,722

Liabilities
 
 
 
 
 
 
 
Trading account liabilities
—

 
1,000

 
—

 
1,000

Earnout liability(3)
—

 
—

 
11,348

 
11,348

Derivative liabilities:
 
 
 
 
 
 
 
Interest rate contracts
—

 
12,638

 
—

 
12,638

Mortgage derivatives(2)
—

 
129

 
—

 
129

Visa derivative
—

 
—

 
4,330

 
4,330

Total derivative liabilities
—

 
12,767

 
4,330

 
17,097

 
 
 
 
 
 
 
 
 
December 31, 2016
(in thousands)
Level 1
 
Level 2
 
Level 3
 
Total Assets and Liabilities at Fair Value
Assets
 
 
 
 
 
 
 
Trading securities:
 
 
 
 
 
 
 
Mortgage-backed securities issued by U.S. Government agencies
$
—

 
$
3,460

 
$
—

 
$
3,460

Collateralized mortgage obligations issued by U.S. Government sponsored enterprises
—

 
3,438

 
—

 
3,438

State and municipal securities
—

 
426

 
—

 
426

Other investments
1,890

 
100

 
—

 
1,990

Total trading securities
1,890

 
7,424

 
—

 
9,314

Mortgage loans held for sale
—

 
51,545

 
—

 
51,545

Investment securities available for sale:
 
 
 
 
 
 
 
U.S. Treasury securities
107,802

 
—

 
—

 
107,802

U.S. Government agency securities
—

 
12,993

 
—

 
12,993

Mortgage-backed securities issued by U.S. Government agencies
—

 
174,202

 
—

 
174,202

Mortgage-backed securities issued by U.S. Government sponsored enterprises
—

 
2,506,340

 
—

 
2,506,340

Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises
—

 
890,442

 
—

 
890,442

State and municipal securities
—

 
2,794

 
—

 
2,794

Equity securities
3,782

 
—

 
—

 
3,782

 Corporate debt and other securities(1)    
3,092

 
14,952

 
1,796

 
19,840

Total investment securities available for sale
114,676

 
3,601,723

 
1,796

 
3,718,195

Private equity investments
—

 
—

 
25,493

 
25,493

Mutual funds held in rabbi trusts
11,479

 
—

 
—

 
11,479

Derivative assets:
 
 
 
 
 
 
 
Interest rate contracts
—

 
17,157

 
—

 
17,157

Mortgage derivatives (2)
—

 
3,466

 
—

 
3,466

Total derivative assets
—

 
20,623

 
—

 
20,623

Liabilities
 
 
 
 
 
 
 
Earnout liability(3)
—

 
—

 
14,000

 
14,000

Derivative liabilities:
 
 
 
 
 
 
 
Interest rate contracts
—

 
17,531

 
—

 
17,531

Visa derivative
—

 
—

 
5,768

 
5,768

Total derivative liabilities
—

 
17,531

 
5,768

 
23,299

 
 
 
 
 
 
 
 

(1 ) Based on an analysis of the nature and risks of these investments, Synovus has determined that presenting these investments as a single asset class is appropriate.
(2 ) Mortgage derivatives consist of customer interest rate lock commitments that relate to the potential origination of mortgage loans, which would be classified as held for sale and forward loan sales commitments with third-party investors.
(3 ) Earnout liability consists of contingent consideration obligation related to Global One acquisition.
Changes in Fair Value Included in Consolidated Statements of Income
The following table summarizes the difference between the fair value and the unpaid principal balance of mortgage loans held for sale at fair value and the changes in fair value of these loans. Mortgage loans held for sale are initially measured at fair value with subsequent changes in fair value recognized in earnings. Changes in fair value were recorded as a component of mortgage banking income in the consolidated statements of income. An immaterial portion of these changes in fair value was attributable to changes in instrument-specific credit risk.
 
Twelve Months Ended December 31,
(in thousands)
2017
 
2016
 
2015
Changes in fair value included in net income:
 
 
 
 
 
Mortgage loans held for sale
$
754

 
$
(667
)
 
$
(742
)
Mortgage loans held for sale:
 
 
 
 
 
Fair value
48,024

 
51,545

 
59,275

Unpaid principal balance
46,839

 
51,114

 
58,177

Fair value less aggregate unpaid principal balance
$
1,185

 
$
431

 
$
1,098

 
 
 
 
 
 
Changes in Level 3 Fair Value Measurements
The table below includes a roll-forward of the amounts on the consolidated balance sheet for the year ended December 31, 2017 and 2016 (including the change in fair value), for financial instruments of a material nature that are classified by Synovus within Level 3 of the fair value hierarchy and are measured at fair value on a recurring basis. Transfers between fair value levels are recognized at the end of the reporting period in which the associated changes in inputs occur. During 2017 and 2016, Synovus did not have any transfers between levels in the fair value hierarchy.
 
2017
(in thousands)
Investment Securities Available for Sale
 
 Private Equity Investments
 
Visa Derivative
 
Earnout Liability (1)
 
GGL/SBA
Loans Servicing Asset (2)
Beginning balance, January 1,
$
1,796

 
$
25,493

 
$
(5,768
)
 
$
(14,000
)
 
$
—

Total (losses) gains realized/unrealized:
 
 
 
 
 
 
 
 
 
     Included in earnings    
—

 
(3,093
)
 
—

 
(5,466
)
 
(1,681
)
Unrealized gains included in other comprehensive income
139

 
—

 
—

 
—

 
—

Additions
—

 
—


—

 
—

 
1,330

Sales
—

 
(6,629
)
 
—

 
—

 
—

Settlements
—

 
—

 
1,438

 
6,352

 
—

Transfer from amortization method to fair value
—

 
—

 
—

 
—

 
4,452

Measurement period adjustments related to Global One acquisition
—

 
—

 
—

 
1,766

 
—

Ending balance, December 31,
$
1,935

 
$
15,771

 
$
(4,330
)
 
$
(11,348
)
 
$
4,101

Total net (losses) for the year included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at December 31,    
$
—

 
$
(3,093
)
 
$
—

 
$
(5,466
)
 
$
(1,681
)
 
 
 
 
 
 
 
 
 
 

 
2016
(in thousands)
Investment Securities Available for Sale
 
 Private Equity Investments
 
Visa Derivative
 
Earnout Liability (1)
Beginning balance, January 1,
$
1,745

 
$
27,148

 
$
(1,415
)
 
$
—

Total gains (losses) realized/unrealized:
 
 
 
 
 
 
 
     Included in earnings    
—

 
(1,026
)
 
(5,795
)
 
—

Unrealized gains included in other comprehensive income
51

 
—

 
—

 
—

Additions
—

 
—

 
—

 
(14,000
)
Settlements
—

 
(629
)
 
1,442

 
—

Ending balance, December 31,
$
1,796

 
$
25,493

 
$
(5,768
)
 
$
(14,000
)
Total net gains (losses) for the year included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at December 31,    
$
—

 
$
(1,026
)
 
$
(5,795
)
 
$
—

 
 
 
 
 
 
 
 

(1) Earnout liability consists of contingent consideration obligation related to the Global One acquisition.  
(2) Effective January 1, 2017, Synovus elected the fair value option for determining the value of the GGL/SBA loans servicing asset. Prior to 2017, Synovus accounted for the GGL/SBA loans servicing asset using the amortization method.
Assets and Liabilities Measured at Fair Value on Non-Recurring Basis
The following tables present assets measured at fair value on a non-recurring basis as of the dates indicated for which there was a fair value adjustment during the period.


As of December 31, 2017
 
Fair Value Adjustments
for the Year Ended December 31, 2017
(in thousands)
Level 1
 
Level 2
 
Level 3
 
Impaired loans*        
$
—

 
$
—

 
$
3,603

 
$
991

Other loans held for sale
—

 
—

 
10,197

 
13,004

Other real estate
—

 
—

 
3,363

 
2,413

Other assets held for sale
—

 
—

 
5,334

 
2,491

 
 
 
 
 
 
 
 
 
As of December 31, 2016
 
Fair Value Adjustments
for the Year Ended December 31, 2016
 
Level 1
 
Level 2
 
Level 3
 
Impaired loans*    
$
—

 
$
—

 
$
21,742

 
$
6,613

Other real estate
—

 
—

 
19,305

 
1,223

Other assets held for sale
—

 
—

 
12,083

 
5,715

 
 
 
 
 
 
 
 
*Collateral-dependent impaired loans that are written down to fair value during the period.
Fair Value Inputs, Assets, Quantitative Information
The table below provides an overview of the valuation techniques and significant unobservable inputs used in those techniques to measure financial instruments that are classified within Level 3 of the valuation hierarchy and are measured at fair value on a non-recurring basis.
 
 
 
 
 
 
December 31, 2017
 
December 31, 2016
 
 
Valuation Technique
 
Significant Unobservable Input
 
Range
(Weighted Average)(1)
 
Range
(Weighted Average)(1)
Assets measured at
fair value on a
non-recurring basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collateral-dependent impaired loans
 
Third-party appraised value of collateral less estimated selling costs
 
Discount to appraised value (2)
Estimated selling costs
 
0%-50% (15%) 0%-10% (7%)
 
0%-52% (25%) 0%-10% (7%)
 
 
 
 
 
 
 
 
 
Other loans held for sale
 
Third-party appraised value of collateral less estimated selling costs
 
Discount to appraised value (2)
Estimated selling costs
 
5%-99% (54%) 0%-10% (2%)
 
N/A
 
 
 
 
 
 
 
 
 
Other real estate
 
Third-party appraised value of real estate less estimated selling costs
 
Discount to appraised value (2)
Estimated selling costs
 
0%-85% (35%) 0%-10% (7%)
 
0%-10% (5%) 0%-10% (7%)
 
 
 
 
 
 
 
 
 
Other assets held for sale
 
Third-party appraised value less estimated selling costs or BOV
 
Discount to appraised value (2)
Estimated selling costs
 
21%-52%(25%) 0%-10% (7%)
 
0%-81% (47%) 0%-10% (7%)
 
 
 
 
 
 
 
 
 
(1) The weighted average is the measure of central tendencies; it is not the value that management is using for the asset or liability.
(2) Synovus also makes adjustments to the values of the assets listed above for various reasons, including age of the appraisal, information known by management about the property, such as occupancy rates, changes to the physical conditions of the property, pending sales, and other factors. The year ended December 31, 2017 included certain balance sheet restructuring actions which resulted in additional discounts to fair value for planned accelerated dispositions of other loans held for sale, other real estate, and other assets held for sale.
The table below provides an overview of the valuation techniques and significant unobservable inputs used in those techniques to measure financial instruments that are classified within Level 3 of the valuation hierarchy and are measured at fair value on a recurring basis. The range of sensitivities that management utilized in its fair value calculations is deemed acceptable in the industry with respect to the identified financial instruments.
 
 
 
 
 
 
December 31, 2017
 
December 31, 2016
(dollars in thousands)
 
Valuation Technique
 
Significant Unobservable Input
 
Level 3 Fair Value
Range / Weighted Average
 
Level 3 Fair Value
Range / Weighted Average
Assets measured at
fair value on a
recurring basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment Securities Available for Sale -
Other investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trust preferred securities
 
Discounted cash flow analysis
 
Credit spread embedded in discount rate
 
$
1,935

398 bps
 
$1,796
442 bps
 
 
 
 
 
 
 
 
 
 
 
Private equity investments
 
Individual analysis of each investee company
 
Multiple factors, including but not limited to, current operations, financial condition, cash flows, evaluation of business management and financial plans, and recently executed financing transactions related to the investee companies   
 
15,771

N/A
 
25,493
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discount for lack of liquidity (1)
 
 
N/A
 
 
15%
 
 
 
 
 
 
 
 
 
 
 
GGL/SBA loans servicing asset
 
Discounted cash flow analysis
 
Discount rate
Prepayment speeds
 
4,101

13.16% 7.50%
 
N/A
N/A
 
 
 
 
 
 
 
 
 
 
 
Earnout liability
 
Option pricing methods and Monte Carlo simulation
 
Financial projections of Global One
 
11,348

N/A
 
14,000
N/A
 
 
 
 
 
 
 
 
 
 
 
Visa derivative liability
 
Discounted cash flow analysis
 
Estimated timing of resolution of covered litigation, future cumulative deposits to the litigation escrow for settlement of the Covered Litigation, and estimated future monthly fees payable to the derivative counterparty
 
4,330

1-4 years
 
5,768
1 - 5 years
 
 
 
 
 
 
 
 
 
 
 
(1) Represents management's estimate of discount that market participants would require based on the instrument's lack of liquidity.

Carrying and Estimated Fair Values of Financial Instruments Carried on Balance Sheet
The carrying and estimated fair values of financial instruments, as well as the level within the fair value hierarchy, as of December 31, 2017 and 2016 are as follows:
 
December 31, 2017

(in thousands)
Carrying Value
 
Fair Value
 
Level 1
 
Level 2
 
Level 3
Financial Assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
397,848

 
$
397,848

 
$
397,848

 
$
—

 
$
—

Interest bearing funds with Federal Reserve Bank
460,928

 
460,928

 
460,928

 
—

 
—

Interest earning deposits with banks
26,311

 
26,311

 
26,311

 
—

 
—

Federal funds sold and securities purchased under resale agreements
47,846

 
47,846

 
47,846

 
—

 
—

Trading account assets
3,820

 
3,820

 
522

 
3,298

 
—

Mortgage loans held for sale
48,024

 
48,024

 
—

 
48,024

 
—

Other loans held for sale
11,356

 
11,356

 
—

 
—

 
11,356

Investment securities available for sale
3,987,069

 
3,987,069

 
85,836

 
3,899,298

 
1,935

Private equity investments
15,771

 
15,771

 
—

 
—

 
15,771

Mutual funds held in rabbi trusts
14,140

 
14,140

 
14,140

 
—

 
—

Loans, net of deferred fees and costs
24,787,464

 
24,507,141

 
—

 
—

 
24,507,141

GGL/SBA loans servicing asset
4,101

 
4,101

 
—

 
—

 
4,101

Derivative assets
11,722

 
11,722

 
—

 
11,722

 
—

Financial Liabilities
 
 
 
 
 
 
 
 
 
Trading account liabilities
1,000

 
1,000

 
—

 
1,000

 
—

Non-interest bearing deposits
7,686,339

 
7,686,339

 
—

 
7,686,339

 
—

Interest bearing deposits
18,461,561

 
18,465,475

 
—

 
18,465,475

 
—

Federal funds purchased and securities sold under repurchase agreements
161,190

 
161,190

 
161,190

 
—

 
—

Long-term debt
1,706,138

 
1,721,814

 
—

 
1,721,814

 
—

Earnout liability
11,348

 
11,348

 
—

 
—

 
11,348

Derivative liabilities
17,097

 
17,097

 
—

 
12,767

 
4,330

 
 
 
 
 
 
 
 
 
 
 
December 31, 2016

(in thousands)
Carrying Value
 
Fair Value
 
Level 1
 
Level 2
 
Level 3
Financial assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
395,175

 
$
395,175

 
$
395,175

 
$
—

 
$
—

Interest bearing funds with Federal Reserve Bank
527,090

 
527,090

 
527,090

 
—

 
—

Interest earning deposits with banks
18,720

 
18,720

 
18,720

 
—

 
—

Federal funds sold and securities purchased under resale agreements
58,060

 
58,060

 
58,060

 
—

 
—

Trading account assets
9,314

 
9,314

 
1,890

 
7,424

 
—

Mortgage loans held for sale
51,545

 
51,545

 
—

 
51,545

 
—

Investment securities available for sale
3,718,195

 
3,718,195

 
114,676

 
3,601,723

 
1,796

Private equity investments
25,493

 
25,493

 
—

 
—

 
25,493

Mutual funds held in Rabbi Trusts
11,479

 
11,479

 
11,479

 
—

 
—

Loans, net of deferred fees and costs
23,856,391

 
23,709,434

 
—

 
—

 
23,709,434

Derivative assets
20,623

 
20,623

 
—

 
20,623

 
—

Financial liabilities
 
 
 
 
 
 
 
 
 
Non-interest bearing deposits
7,085,804

 
7,085,804

 
—

 
7,085,804

 
—

Interest bearing deposits
17,562,256

 
17,560,021

 
—

 
17,560,021

 
—

Federal funds purchased and securities sold under repurchase agreements
159,699

 
159,699

 
159,699

 
—

 
—

Long-term debt
2,160,881

 
2,217,544

 
—

 
2,217,544

 
—

Earnout liability
14,000

 
14,000

 
—

 
—

 
14,000

Derivative liabilities
23,299

 
23,299

 
—

 
17,531

 
5,768