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Fair Value Accounting
 12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value Accounting
Note 14 - Fair Value Accounting
Fair value accounting guidance defines fair value as the exchange price that would be received to sell an asset or paid to transfer a liability (an "exit price") in the principal or most advantageous market available to the entity in an orderly transaction between market participants, on the measurement date. See "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 - Summary of Significant Accounting Policies" of this Report for a description of how fair value measurements are determined.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents all financial instruments measured at fair value on a recurring basis as of December 31, 2020 and 2019.
December 31, 2020
(in thousands)Level 1Level 2Level 3Total Assets and Liabilities at Fair Value
Assets
Trading securities:
Mortgage-backed securities issued by U.S. Government agencies$— $10,185 $— $10,185 
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises— 158 — 158 
Other mortgage-backed securities— 178 — 178 
State and municipal securities— 176 — 176 
Asset-backed securities— 183 — 183 
Total trading securities$— $10,880 $— $10,880 
Investment securities available for sale:
U.S. Treasury securities$20,257 $— $— $20,257 
U.S. Government agency securities— 82,320 — 82,320 
Mortgage-backed securities issued by U.S. Government agencies— 1,218,017 — 1,218,017 
Mortgage-backed securities issued by U.S. Government sponsored enterprises— 5,000,046 — 5,000,046 
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises— 1,250,377 — 1,250,377 
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises— 370,921 — 370,921 
Corporate debt securities and other debt securities— 18,479 2,021 20,500 
Total investment securities available for sale$20,257 $7,940,160 $2,021 $7,962,438 
Mortgage loans held for sale— 216,647 — 216,647 
Private equity investments— — 1,021 1,021 
Mutual funds and mutual funds held in rabbi trusts37,650 — — 37,650 
GGL/SBA loans servicing asset— — 3,258 3,258 
Derivative assets— 401,295 — 401,295 
Liabilities
Trading liability for short positions$— $7,717 $— $7,717 
Earnout liability— — 5,677 5,677 
Derivative liabilities— 155,119 2,048 157,167 
December 31, 2019
(in thousands)Level 1Level 2Level 3Total Assets and Liabilities at Fair Value
Assets
Trading securities:
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises$— $2,486 $— $2,486 
Other mortgage-backed securities— 1,284 — 1,284 
State and municipal securities— 65 — 65 
Asset-backed securities— 3,227 — 3,227 
Other investments— 150 — 150 
Total trading securities$— $7,212 $— $7,212 
Investment securities available for sale:
U.S. Treasury securities$19,855 $— $— $19,855 
U.S. Government agency securities— 36,541 — 36,541 
Mortgage-backed securities issued by U.S. Government agencies— 56,816 — 56,816 
Mortgage-backed securities issued by U.S. Government sponsored enterprises— 5,180,815 — 5,180,815 
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises— 636,851 — 636,851 
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises— 371,592 — 371,592 
State and municipal securities— 2,075 — 2,075 
Asset-backed securities— 327,400 — 327,400 
Corporate debt securities and other debt securities— 144,620 2,105 146,725 
Total investment securities available for sale$19,855 $6,756,710 $2,105 $6,778,670 
Mortgage loans held for sale— 115,173 — 115,173 
Private equity investments15,502 — 3,887 19,389 
Mutual funds and mutual funds held in rabbi trusts32,348 — — 32,348 
GGL/SBA loans servicing asset— — 3,040 3,040 
Derivative assets— 140,016 — 140,016 
Liabilities
Trading liability for short positions$1,560 $— $— $1,560 
Earnout liability— — 11,016 11,016 
Derivative liabilities— 34,732 2,339 37,071 
Fair Value Option
Synovus has elected the fair value option for mortgage loans held for sale primarily to ease the operational burden required to maintain hedge accounting for these loans. Synovus is still able to achieve effective economic hedges on mortgage loans held for sale without the time and expense needed to manage a hedge accounting program.
The following table summarizes the difference between the fair value and the UPB of mortgage loans held for sale and the changes in fair value of these loans. An immaterial portion of these changes in fair value was attributable to instrument-specific credit risk.
Years Ended December 31,
(in thousands)202020192018
Changes in fair value included in net income:
Mortgage loans held for sale$3,400 $1,675 $95 
Mortgage loans held for sale:
Fair value216,647 115,173 37,129 
Unpaid principal balance210,292 112,218 35,848 
Fair value less aggregate unpaid principal balance$6,355 $2,955 $1,281 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
During 2020, Synovus did not have any transfers in or out of Level 3 in the fair value hierarchy. During 2019, Synovus had transfers out of Level 3 into Level 1 in the fair value hierarchy as certain funds within private equity investments became public with traded securities. These transfers were accounted for as if they occurred at the beginning of the reporting period.
2020
(in thousands)Investment Securities Available for SalePrivate Equity InvestmentsGGL/SBA Loans Servicing AssetEarnout LiabilityVisa Derivative Liability
Beginning balance, January 1, 2020$2,105 $3,887 $3,040 $(11,016)$(2,339)
Total (losses) gains realized/unrealized:
Included in earnings— (2,866)(1,000)(4,908)(890)
Unrealized gains (losses) included in other comprehensive income(84)— — — — 
Additions— — 

1,218 — — 
Settlements— — — 10,247 1,181 
Ending balance, December 31, 2020$2,021 $1,021 $3,258 $(5,677)$(2,048)
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, 2020$— $(2,866)$— $(4,908)$(890)
2019
(in thousands)Investment Securities Available for SalePrivate Equity InvestmentsGGL/SBA Loans Servicing AssetEarnout LiabilityVisa Derivative Liability
Beginning balance, January 1, 2019$1,785 $11,028 $3,729 $(14,353)$(1,673)
Total (losses) gains realized/unrealized:
Included in earnings— 230 (1,631)(10,457)(3,611)
Unrealized (losses) gains included in other comprehensive income320 — — — — 
Additions— — 942 — — 
Sales— (1,437)— — — 
Settlements— — — 13,794 2,945 
Transfers out of Level 3— (5,934)— — — 
Ending balance, December 31, 2019$2,105 $3,887 $3,040 $(11,016)$(2,339)
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, 2019$— $230 $— $(10,457)$(666)
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, 2020
(dollars in thousands)Valuation TechniqueSignificant Unobservable InputLevel 3 Fair ValueRate/Range
Assets measured at fair value on a recurring basis
Investment Securities Available for Sale -
Corporate debt and other debt securities - trust preferred security		Discounted cash flow analysisDiscount rate
Forecasted average Prime reset rate		$2,021
4.96% 4.06%
Private equity investmentsIndividual analysis of each investee companyMultiple 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$1,021N/A
GGL/SBA loans servicing assetDiscounted cash flow analysisDiscount rate
Prepayment speeds		$3,258
 10.79% 18.81%
Earnout liabilityOption pricing methods and Monte Carlo simulationFinancial projections of Global One through June 30, 2021$5,677N/A
Visa derivative liabilityDiscounted cash flow analysisEstimated timing of resolution of Covered Litigation and future cumulative deposits to the litigation escrow for settlement of the Covered Litigation$2,048
0-1.8 years
(3Q 2022)
Assets Measured at Fair Value on a Non-recurring Basis
Certain assets are required to be measured at fair value on a non-recurring basis subsequent to their initial recognition. These assets and liabilities are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The following table presents assets measured at fair value on a non-recurring basis as of the dates indicated for which there was a fair value adjustment.

December 31, 2020Fair Value Adjustments for the Year Ended December 31, 2020Location in Consolidated Statements of Income
(in thousands)Level 1Level 2Level 3
Loans(1)    
$— $— $23,625 $6,076 Provision for credit losses
Other real estate— — 860 200 Other operating expenses
MPS Receivable— — 15,575 2,663 Other operating expenses
Other assets held for sale— — 2,354 2,292 Other operating expenses
December 31, 2019Fair Value Adjustments for the Year Ended December 31, 2019Location in Consolidated Statements of Income
Level 1Level 2Level 3
Loans(1)    
$— $— $1,461 $683 Provision for credit losses
Other real estate— — 8,023 1,342 Other operating expenses
MPS receivable— — 21,437 — Other operating expenses
Other assets held for sale— — 1,238 513 Other operating expenses
(1) Collateral-dependent loans that are written down to fair value of collateral.
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, 2020
Valuation TechniqueSignificant Unobservable Input
Range
(Weighted Average)(1)
Assets measured at fair value on a non-recurring basis
LoansThird-party appraised value of collateral less estimated selling costsDiscount to appraised value
Estimated selling costs
0%-14% (14%) 0%-7% (7%)
Loans held for saleAnalysis of anticipated market prices for similar assets less estimated selling costsMarket price analysis for similar assets
Estimated selling costs		N/A
Other real estateThird-party appraised value of real estate less estimated selling costsDiscount to appraised value
Estimated selling costs
0%-23% (12%) 0%-10% (7%)
MPS receivable(2)
Third-party appraised value of business less estimated selling costsDiscount to appraised value
Estimated selling costs		N/A
Other assets held for saleThird-party appraised value less estimated selling costs or BOVDiscount to appraised value
Estimated selling costs
0%-66% (45%) 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)    See "Part II - Item 8. Financial Statements and Supplementary Data - Note 16 - Commitments and Contingencies" of this Report for more information on this receivable which was classified as a NPA at December 31, 2020 and 2019.
Fair Value of Financial Instruments
The following table presents the carrying and estimated fair values of financial instruments at December 31, 2020 and 2019. The fair values represent management’s best estimates based on a range of methodologies and assumptions. See "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 - Summary of Significant Accounting Policies" of this Report for a description of how fair value measurements are determined.
December 31, 2020

(in thousands)
Carrying ValueFair ValueLevel 1Level 2Level 3
Financial assets
Total cash, cash equivalents, and restricted cash$4,252,917 $4,252,917 $4,252,917 $— $— 
Trading securities10,880 10,880 — 10,880 — 
Investment securities available for sale7,962,438 7,962,438 20,257 7,940,160 2,021 
Loans held for sale760,123 760,939 — 216,647 544,292 
Private equity investments1,021 1,021 — — 1,021 
Mutual funds and mutual funds held in rabbi trusts37,650 37,650 37,650 — — 
Loans, net37,647,248 37,605,881 — — 37,605,881 
GGL/SBA loans servicing asset3,258 3,258 — — 3,258 
Derivative assets401,295 401,295 — 401,295 — 
Financial Liabilities
Non-interest-bearing deposits$13,477,854 $13,477,854 $— $13,477,854 $— 
Non-time interest-bearing deposits27,265,521 27,265,521 — 27,265,521 — 
Time deposits5,948,196 5,970,146 — 5,970,146 — 
Total deposits$46,691,571 $46,713,521 $— $46,713,521 $— 
Securities sold under repurchase agreements227,922 227,922 227,922 — — 
Trading liability for short positions7,717 7,717 — 7,717 — 
Long-term debt1,202,494 1,266,825 — 1,266,825 — 
Earnout liability5,677 5,677 — — 5,677 
Derivative liabilities157,167 157,167 — 155,119 2,048 
December 31, 2019


(in thousands)
Carrying ValueFair ValueLevel 1Level 2Level 3
Financial assets
Total cash, cash equivalents and restricted cash$1,186,918 $1,186,918 $1,186,918 $— $— 
Trading securities7,212 7,212 — 7,212 — 
Investment securities available for sale6,778,670 6,778,670 19,855 6,756,710 2,105 
Loans held for sale115,173 115,173 — 115,173 — 
Private equity investments19,389 19,389 15,502 — 3,887 
Mutual funds and mutual funds held in rabbi trusts32,348 32,348 32,348 — — 
Loans, net36,881,048 36,931,256 — — 36,931,256 
GGL/SBA loans servicing asset3,040 3,040 — — 3,040 
Derivative assets140,016 140,016 — 140,016 — 
Financial Liabilities
Non-interest-bearing deposits$9,439,485 $9,439,485 $— $9,439,485 $— 
Non-time interest-bearing deposits19,891,711 19,891,711 — 19,891,711 — 
Time deposits9,074,308 9,112,459 — 9,112,459 — 
Total deposits$38,405,504 $38,443,655 $— $38,443,655 $— 
Securities sold under repurchase agreements165,690 165,690 165,690 — — 
Trading liability for short positions1,560 1,560 1,560 — — 
Other short-term borrowings1,752,000 1,752,000 — 1,752,000 — 
Long-term debt2,153,897 2,185,717 — 2,185,717 — 
Earnout liability11,016 11,016 — — 11,016 
Derivative liabilities37,071 37,071 — 34,732 2,339