Regulatory Capital

12 Months Ended

Dec. 31, 2012

Regulatory Capital Disclosure [Abstract]

Regulatory Capital

Regulatory Capital

Synovus is subject to regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Synovus must meet specific capital levels that involve quantitative measures of both on- and off-balance sheet items as calculated under regulatory capital guidelines. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

As a financial holding company, Synovus and its subsidiary bank, Synovus Bank, are required to maintain capital levels required for a well-capitalized institution as defined by federal banking regulations. The capital measures used by the federal banking regulators include the total risk-based capital ratio, Tier 1 risk-based capital ratio, and the leverage ratio. Synovus Bank is a state-chartered bank under the regulations of the GA DBF. Under applicable regulations, Synovus Bank is well-capitalized if it has a total risk-based capital ratio of 10% or greater, a Tier 1 capital ratio of 6% or greater, a leverage ratio of 5% or greater, and is not subject to any written agreement, order, capital directive, or prompt corrective action directive from a federal and/or state banking regulatory agency to meet and maintain a specific capital level for any capital measure. However, even if Synovus Bank satisfies all applicable quantitative criteria to be considered well-capitalized, the regulations also establish procedures for “downgrading” an institution to a lower capital category based on supervisory factors other than capital. In June 2010, Synovus Bank entered into a memorandum of understanding with the FDIC and the GA DBF agreeing to maintain a minimum leverage ratio of 8% and a minimum total risk-based capital to risk-weighted assets ratio of 10%. Management believes that, as of December 31, 2012, Synovus and Synovus Bank meet all capital requirements to which they are subject.

Management currently believes, based on current internal capital analyses and earnings projections, that Synovus' capital position is adequate to meet current regulatory minimum capital requirements. However, Synovus continues to actively monitor economic conditions, evolving industry capital standards, and changes in regulatory standards and requirements, and engages in regular discussions with its regulators regarding capital at both Synovus and Synovus Bank. As part of its ongoing management of capital, Synovus will continue to identify, consider, and pursue additional strategic initiatives to bolster its capital position as deemed necessary, including strategies in connection with the future repayment of Synovus' obligations under the CPP.

The following table summarizes regulatory capital information at December 31, 2012 and 2011 on a consolidated basis and for Synovus’ significant subsidiary, defined as any direct subsidiary with assets or net income levels exceeding 10% of the consolidated totals.

	Actual				For Capital Adequacy Purposes		To Be Well Capitalized Under Prompt Corrective Action Provisions (1)
(dollars in thousands)	2012			2011	2012	2011	2012	2011
Synovus Financial Corp.
Tier I capital	$	2,832,244		2,780,774	1,029,860	1,103,113	n/a	n/a
Total risk-based capital	3,460,998			3,544,089	1,711,035	1,718,946	n/a	n/a
Tier I risk-based capital ratio	13.24		%	12.94	4.00	4.00	n/a	n/a
Total risk-based capital ratio	16.18			16.49	8.00	8.00	n/a	n/a
Leverage ratio	11.00			10.08	4.00	4.00	n/a	n/a
Synovus Bank(2)
Tier I capital	$	3,173,530		2,950,329	1,023,060	1,090,674	1,279,277	1,363,343
Total risk-based capital	3,441,364			3,219,480	1,705,703	1,701,416	2,132,129	2,126,769
Tier I risk-based capital ratio	14.88		%	13.87	4.00	4.00	6.00	6.00
Total risk-based capital ratio	16.14			15.14	8.00	8.00	10.00	10.00
Leverage ratio	12.41			10.82	4.00	4.00	5.00	5.00

⁽¹⁾ The prompt corrective action provisions are applicable at the bank level only.

⁽²⁾ Synovus Bank entered into a memorandum of understanding with the FDIC and the GA DBF in June of 2010 agreeing to maintain minimum capital ratios at specified levels higher than those otherwise required by applicable regulation as follows: Tier 1 capital to total average assets (leverage ratio) of 8% and total capital to risk-weighted assets (total risk-based capital ratio) of 10%.