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Fair Value Accounting
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Accounting
Note 12 - 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, 2022 and 2021.
December 31, 2022December 31, 2021
(in thousands)Level 1Level 2Level 3Total Assets and Liabilities at Fair ValueLevel 1Level 2Level 3Total Assets and Liabilities at Fair Value
Assets
Trading securities:
Mortgage-backed securities issued by U.S. Government agencies$— $— $— $— $— $197 $— $197 
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises— 2,991 — 2,991 — 671 — 671 
Other mortgage-backed securities— 3,185 — 3,185 — — — — 
State and municipal securities— 48 — 48 — 560 — 560 
Asset-backed securities— 2,071 — 2,071 — 6,963 — 6,963 
Total trading securities$— $8,295 $— $8,295 $— $8,391 $— $8,391 
Investment securities available for sale:
U.S. Treasury securities$471,813 $— $— $471,813 $117,838 $— $— $117,838 
U.S. Government agency securities— 48,798 — 48,798 — 54,201 — 54,201 
Mortgage-backed securities issued by U.S. Government agencies— 792,749 — 792,749 — 779,633 — 779,633 
Mortgage-backed securities issued by U.S. Government sponsored enterprises— 6,895,070 — 6,895,070 — 8,012,301 — 8,012,301 
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises— 655,127 — 655,127 — 939,623 — 939,623 
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises— 805,945 — 805,945 — 481,744 — 481,744 
Asset-backed securities— — — — — 514,188 — 514,188 
Corporate debt securities and other debt securities— 8,601 — 8,601 — 18,801 — 18,801 
Total investment securities available for sale$471,813 $9,206,290 $— $9,678,103 $117,838 $10,800,491 $— $10,918,329 
Mortgage loans held for sale$— $51,136 $— $51,136 $— $108,198 $— $108,198 
Other investments— — 11,172 11,172 — — 12,185 12,185 
Mutual funds and mutual funds held in rabbi trusts42,659 — — 42,659 43,657 — — 43,657 
SBA loans servicing asset— — 2,354 2,354 — — 3,233 3,233 
Derivative assets— 89,815 — 89,815 — 191,708 — 191,708 
Liabilities
Securities sold short$3,370 $— $— $3,370 $— $200 $— $200 
Mutual fund held in rabbi trusts27,944 — — 27,944 27,205 — — 27,205 
Derivative liabilities— 339,227 3,453 342,680 — 95,067 3,535 98,602 
Fair Value Option
Synovus has elected the fair value option for mortgage loans held for sale primarily to ease the operational burden required to maintain hedge accounting for these loans. Synovus is still able to achieve effective economic hedges on mortgage loans held for sale without the time and expense needed to manage a hedge accounting program.
The following table summarizes the difference between the fair value and the UPB of mortgage loans held for sale and the changes in fair value of these loans. An immaterial portion of these changes in fair value was attributable to instrument-specific credit risk.
Years Ended December 31,
(in thousands)202220212020
Changes in fair value included in net income:
Mortgage loans held for sale$(1,541)$(3,942)$3,400 
Mortgage loans held for sale:
Fair value51,136 108,198 216,647 
Unpaid principal balance50,264 105,785 210,292 
Fair value less aggregate unpaid principal balance$872 $2,413 $6,355 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
During 2022 and 2021, Synovus did not have any transfers in or out of Level 3 in the fair value hierarchy.
2022
(in thousands)Other InvestmentsSBA Loans Servicing AssetVisa Derivative Liability
Beginning balance$12,185 $3,233 $(3,535)
Total gains (losses) realized/unrealized:
Included in earnings(7,201)(2,012)(6,000)
Additions6,188 

1,133 — 
Settlements— — 6,082 
Ending balance$11,172 $2,354 $(3,453)
Total net gains (losses) for the year included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at December 31, 2022$(7,201)$(460)$(6,000)
2021
(in thousands)Investment Securities Available for SaleOther InvestmentsSBA Loans Servicing AssetEarnout LiabilityVisa Derivative Liability
Beginning balance$2,021 $1,021 $3,258 $(5,677)$(2,048)
Total gains (losses) realized/unrealized:
Included in earnings— 1,164 (1,339)(507)(2,656)
Sales(2,021)— — — — 
Additions— 10,000 1,314 — — 
Settlements— — — 6,184 1,169 
Ending balance$— $12,185 $3,233 $— $(3,535)
Total net gains (losses) for the year included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at December 31, 2021$— $1,164 $— $— $(2,656)
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, 2022December 31, 2021
(dollars in thousands)Valuation TechniqueSignificant Unobservable InputLevel 3 Fair ValueRate/RangeLevel 3 Fair ValueRate/Range
Assets (liabilities) measured at fair value on a recurring basis
Other 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$11,172N/A$12,185N/A
SBA loans servicing assetDiscounted cash flow analysisDiscount rate
Prepayment speeds		2,354
 18.85% 14.73%
3,233
 8.55% 18.50%
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 Conversion Ratio(3,453)
0-1.6 years
(3Q2024) 1.5991
(3,535)
0-1.8 years
(3Q 2023) 1.6181
Assets (Liabilities) Measured at Fair Value on a Non-recurring Basis
Certain assets and liabilities 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 items measured at fair value on a non-recurring basis as of the dates indicated for which there was a fair value adjustment.
December 31, 2022December 31, 2021
(in thousands)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Loans(1)
$— $— $19,410 $19,410 $— $— $19,482 $19,482 
Other real estate— — — — — — 270 270 
Other assets held for sale— — 7,548 7,548 — — 1,256 1,256 

Years Ended December 31,
(in thousands)20222021Location in Consolidated Statements of Income
Loans(1)
$7,098 $27,613 Provision for credit losses
Other real estate— 120 Other operating expense
Other assets held for sale1,843 462 Other operating expense
(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, 2022December 31, 2021
Valuation TechniqueSignificant Unobservable Input
Range
(Weighted Average)(1)
Range
(Weighted Average)(1)
Assets (liabilities) 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%-74% (21%) 0%-10% (7%)
0%-71% (48%) 0%-10% (7%)
Other real estateThird-party appraised value of real estate less estimated selling costsDiscount to appraised value
Estimated selling costs		N/A
0%-48% (24%) 0%-10%(7%)
Other assets held for saleThird-party appraised value less estimated selling costs or BOVDiscount to appraised value
Estimated selling costs
0%-35% (13%) 0%-10% (7%)
0%-51% (20%) 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.
Fair Value of Financial Instruments
The following table presents the carrying and estimated fair values of financial instruments at December 31, 2022 and 2021. 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, 2022
(in thousands)Carrying ValueFair ValueLevel 1Level 2Level 3
Financial assets
Total cash, cash equivalents, and restricted cash$1,977,780 $1,977,780 $1,977,780 $— $— 
Trading securities8,295 8,295 — 8,295 — 
Investment securities available for sale9,678,103 9,678,103 471,813 9,206,290 — 
Loans held for sale391,502 391,085 — 51,136 339,949 
Other investments11,172 11,172 — — 11,172 
Mutual funds and mutual funds held in rabbi trusts42,659 42,659 42,659 — — 
Loans, net 43,272,929 42,192,295 — — 42,192,295 
SBA loans servicing asset2,354 2,354 — — 2,354 
FRB and FHLB stock308,321 308,321 — 308,321 — 
Derivative assets89,815 89,815 — 89,815 — 
Financial liabilities
Non-interest-bearing deposits$15,639,899 $15,639,899 $— $15,639,899 $— 
Non-time interest-bearing deposits26,936,635 26,936,635 — 26,936,635 — 
Time deposits6,295,025 6,260,315 — 6,260,315 — 
Total deposits$48,871,559 $48,836,849 $— $48,836,849 $— 
Federal funds purchased and securities sold under repurchase agreements146,588 146,588 146,588 — — 
Securities sold short3,370 3,370 3,370 — — 
Short-term FHLB advances600,014 600,014 — 600,014 — 
Long-term debt4,109,597 4,120,113 — 4,120,113 — 
Mutual fund held in rabbi trusts27,944 27,944 27,944 — — 
Derivative liabilities342,680 342,680 — 339,227 3,453 
December 31, 2021
(in thousands)Carrying ValueFair ValueLevel 1Level 2Level 3
Financial assets
Total cash, cash equivalents, and restricted cash$3,009,853 $3,009,853 $3,009,853 $— $— 
Trading securities8,391 8,391 — 8,391 — 
Investment securities available for sale10,918,329 10,918,329 117,838 10,800,491 — 
Loans held for sale750,642 749,980 — 108,198 641,782 
Other investments12,185 12,185 — — 12,185 
Mutual funds and mutual funds held in rabbi trusts43,657 43,657 43,657 — — 
Loans, net 38,884,361 39,118,275 — — 39,118,275 
SBA loans servicing asset3,233 3,233 — — 3,233 
FRB and FHLB stock159,941 159,941 — 159,941 — 
Derivative assets191,708 191,708 — 191,708 — 
Financial liabilities
Non-interest-bearing deposits$16,392,653 $16,392,653 $— $16,392,653 $— 
Non-time interest-bearing deposits28,917,148 28,917,148 — 28,917,148 — 
Time deposits4,117,475 4,125,673 — 4,125,673 — 
Total deposits$49,427,276 $49,435,474 $— $49,435,474 $— 
Federal funds purchased and securities sold under repurchase agreements264,133 264,133 264,133 — — 
Securities sold short200 200 — 200 — 
Long-term debt1,204,229 1,243,147 — 1,243,147 — 
Mutual fund held in rabbi trusts27,205 27,205 27,205 — — 
Derivative liabilities98,602 98,602 — 95,067 3,535