Fair Value Accounting (Tables)

12 Months Ended

Dec. 31, 2012

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, 2012 and 2011, 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. Transfers between levels for the years ended December 31, 2012 and 2011 were inconsequential.

	December 31, 2012
(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	$	—	2,171	—	2,171
Collateralized mortgage obligations issued by   U.S. Government sponsored enterprises	—		4,875	—	4,875
State and municipal securities	—		451	—	451
All other residential mortgage-backed   securities	—		1,159	—	1,159
Other investments	—		2,446	—	2,446
Total trading securities	—		11,102	—	11,102
Mortgage loans held for sale	—		212,663	—	212,663
Investment securities available for sale:
U.S. Treasury securities	356		—	—	356
U.S. Government agency securities	—		38,046	—	38,046
Securities issued by U.S. Government sponsored enterprises	—		293,310	—	293,310
Mortgage-backed securities issued by U.S. Government agencies	—		245,593	—	245,593
Mortgage-backed securities issued by U.S. Government sponsored enterprises	—		1,867,493	—	1,867,493
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises	—		514,489	—	514,489
State and municipal securities	—		15,798	—	15,798
Equity securities	2,849		—	891	3,740
Other investments(1)	—		—	2,287	2,287
Total investment securities available for sale	3,205		2,974,729	3,178	2,981,112
Private equity investments	—		1,168	30,708	31,876
Mutual funds held in Rabbi Trusts	10,001		—	—	10,001
Derivative assets:
Interest rate contracts	—		61,869	—	61,869
Mortgage derivatives	—		2,793	—	2,793
Total derivative assets	—		64,662	—	64,662
Liabilities
Trading securities	—		91	—	91
Salary stock units	1,888		—	—	1,888
Derivative liabilities:
Interest rate contracts	—		62,912	—	62,912
Mortgage derivatives	—		525	—	525
Visa Derivative	—		—	2,956	2,956
Total derivative liabilities	$	—	63,437	2,956	66,393

	December 31, 2011
(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
U.S. Treasury securities	$	—	33	—	33
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises	—		4,040	—	4,040
Other U.S. Government agencies	—		—	—	—
State and municipal securities	—		10	—	10
All other residential mortgage-backed securities	—		11,748	—	11,748
Equity, mutual funds, and other	—		1,035	—	1,035
Total trading securities	—		16,866	—	16,866
Mortgage loans held for sale	—		161,509	—	161,509
Investment securities available for sale:
U.S. Treasury securities	426		—	—	426
U.S. Government agency securities	—		40,493	—	40,493
Securities issued by U.S. Government sponsored enterprises	—		675,421	—	675,421
Mortgage-backed securities issued by U.S. Government agencies	—		285,753	—	285,753
Mortgage-backed securities issued by U.S. Government sponsored enterprises	—		2,002,006	—	2,002,006
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises	—		651,500	—	651,500
State and municipal securities	—		25,318	—	25,318
Equity securities	2,366		—	1,393	3,759
Other investments(1)	—		—	5,449	5,449
Total investment securities available for sale	2,792		3,680,491	6,842	3,690,125
Private equity investments	—		597	21,418	22,015
Mutual funds held in Rabbi Trusts	10,353		—	—	10,353
Derivative assets:
Interest rate contracts	—		83,072	—	83,072
Mortgage derivatives (2)	—		—	1,851	1,851
Total derivative assets	—		83,072	1,851	84,923
Liabilities
Derivative liabilities:
Interest rate contracts	—		85,534	—	85,534
Mortgage derivatives (1)	—		1,947	—	1,947
Visa Derivative	—		—	9,093	9,093
Total derivative liabilities	$	—	87,481	9,093	96,574

⁽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 origination of mortgage loans and forward loan sales commitments with third party investors.

Changes in Fair Value Included in Consolidated Statements of Income

An immaterial portion of these amounts was attributable to changes in instrument-specific credit risk.

	Changes in Fair Value Recorded, Net
	Twelve Months Ended December 31,
(in thousands)	2012		2011	2010
Mortgage loans held for sale	$	1,813	5,185	(2,492	)
Mortgage loans held for sale:
Fair value	212,663		161,509	232,839
Unpaid principal balance	206,657		157,316	233,831
Fair value less aggregate unpaid principal balance	$	6,006	4,193	(992	)

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, 2012 and 2011 (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 the first quarter of 2012, Synovus transferred the mortgage derivative asset, which consists of interest rate lock commitments totaling $1.9 million, from Level 3 to Level 2 within the fair value hierarchy, reflecting increased transparency of the inputs used to value these financial instruments, which are based on the mortgage banking subsidiary's historical experience, conversion ratios for similar loan commitments, market conditions and other observable inputs, instead of previously used external industry data. Additionally, during the first quarter of 2012, Synovus transferred assets totaling $501 thousand that were classified as a Level 3 equity security to other assets to more accurately reflect the financial characteristics of the financial instruments.

	2012
(in thousands)	Investment Securities Available for Sale			Private Equity Investments				Other Derivative Contracts, Net(3)
Beginning balance, January 1,	$	6,842		21,418				(7,242	)
Total gains (losses) realized/unrealized:
Included in earnings(1)	(450		)	8,233				(6,304	)
Unrealized gains (losses) included in other comprehensive income	(713		)	—				—
Change from consolidated to equity method investment	—			—				—
Purchases	—			1,057		(2	)	—
Sales	—			—				—
Issuances	—			—				—
Settlements	(2,000		)	—				12,441
Amortization of discount/premium	—			—				—
Transfers in and/or out of Level 3	(501		)	—				(1,851	)
Ending balance, December 31,	$	3,178		30,708				(2,956	)
The amount of total net gains (losses) for the year  included in earnings attributable to the change  in unrealized gains (losses) relating to assets still  held at December 31,	$	(450	)	8,233				(6,304	)
	2011
(in thousands)	Investment Securities Available for Sale			Private Equity Investments				Other Derivative Contracts, Net(3)
Beginning balance, January 1,	$	10,622		47,357				(4,180	)
Total gains (losses) realized/unrealized:
Included in earnings(1)	1,000			(1,118	)			(3,062	)
Unrealized gains (losses) included in other comprehensive income	(228		)	—				—
Changes from consolidated to equity method investment	—			(27,291	)			—
Purchases	—			2,470		(2	)	—
Sales	(4,552		)	—				—
Issuances	—			—				—
Settlements	—			—				—
Amortization of discount/premium	—			—				—
Transfers in and/or out of Level 3	—			—				—
Ending balance, December 31,	$	6,842		21,418				(7,242	)
The amount of total net gains (losses) for the year  included in earnings attributable to the change  in unrealized gains (losses) relating to assets still  held at December 31,	$	1,000		(1,118	)			(3,062	)

⁽¹⁾ Included in earnings as a component of other non-interest income(expense).

⁽²⁾ Represents additional capital contributed to a private equity investment fund for capital calls. There are no such calls outstanding as of December 31, 2012.

⁽³⁾ Other derivative contracts include the Visa Derivative for both years presented and the mortgage derivatives for the year ended December 31, 2011.

Assets and Liabilities Measured at Fair Value on Non-Recurring Basis

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 during the period, according to the valuation hierarchy included in ASC 820-10.

	As of December 31, 2012					Fair Value Adjustments for the Year Ended December 31, 2012
(in thousands)	Level 1		Level 2	Level 3
Impaired loans(1)	$	—	—	$	80,299	52,916
Other loans held for sale	—		—	7,420		5,144
Other real estate	—		—	79,293		22,615
Other assets held for sale	—		—	5,804		2,425
	As of December 31, 2011					Fair Value Adjustments for the Year Ended December 31, 2011
	Level 1		Level 2	Level 3
Impaired loans(1)	$	—	—	$	222,404	100,129
Other loans held for sale	—		—	6,532		4,860
Other real estate	—		—	112,164		53,876
Other assets held for sale	—		—	12,633		6,162

⁽¹⁾ Impaired loans that are collateral-dependent.

Fair Value Inputs, Assets, Quantitative Information

The tables below provide 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. 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, 2012
(dollars in thousands)	Level 3 Fair Value		Valuation Technique	Significant Unobservable Input	Range (Weighted Average)(a)
Assets measured at fair value on a recurring basis
Investment Securities Available for Sale:
Equity securities	$	891	Individual analysis of each investment	Multiple data points, including, but not limited to evaluation of past and projected business performance (b)	N/A
Other investments:
Trust preferred securities	2,287		Discounted cash flow analysis	Credit spread embedded in discount rate	425-650 bps (571 bps)
				Discount for lack of marketability(b)	0%-10% (0%)
Private equity investments	30,708		Individual analysis of each investee company	Multiple factors, including but not limited to, current operations, financial conditions, cash flows, evaluation of business management and financial plans, and recently executed company transactions related to the investee companies (b)	N/A
Visa derivative liability	$	2,956	Probability model	Probability-weighted potential outcomes of the Covered Litigation and fees payable to the counterparty through the estimated term of the contract	$400 thousand to $3.0 million ($3.0 million)

December 31, 2012
(dollars in thousands)	Level 3 Fair Value		Valuation Technique	Significant Unobservable Input	Range (Weighted Average)(a)
Assets measured at fair value on a non-recurring basis
Collateral dependent impaired loans	$	80,299	Third party appraised value of collateral less estimated selling costs	Discount to appraised value (c)	0%-12% (4%)
				Estimated selling costs	0%-10% (7%)
Other loans held for sale	7,420		Third party appraised value of collateral less estimated selling costs	Appraised value (c)	0%-12% (4%)
				Estimated selling costs	0%-10% (7%)
Other real estate	79,293		Third party appraised value of collateral less estimated selling costs	Discount to appraised value (c)	0%-7% (2%)
				Estimated selling costs	0%-10% (7%)
Other assets held for sale	$	5,804	Third party appraised value of collateral less estimated selling costs or BOV	Discount to appraised value (c)	13%-51% (29%)
				Estimated selling costs	0%-10% (7%)

^(a) The range represents management's best estimate of the high and low of the value that would be assigned to a particular input. The weighted average is the measure of central tendencies; it is the value that management is using or most likely to use for the asset or liability.

^(b) Represents management's estimate of discount that market participants would require based on the instrument's lack of marketability.

^(c) 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, and other factors.

Carrying and Estimated Fair Values of Financial Instruments Carried on Balance Sheet

	December 31, 2012
(in thousands)	Carrying Value		Fair Value	Level 1	Level 2	Level 3
Financial Assets
Cash and cash equivalents	$	614,630	614,630	614,630	—	—
Interest bearing funds with Federal Reserve Bank	1,498,390		1,498,390	1,498,390	—	—
Interest earning deposits with banks	23,442		23,442	23,442	—	—
Federal funds sold and securities purchased under resale agreements	113,517		113,517	113,517	—	—
Trading account assets	11,102		11,102	—	11,102	—
Mortgage loans held for sale	212,663		212,663	—	212,663	—
Impaired/other loans held for sale	10,690		10,690	—	—	10,690
Investment securities available for sale	2,981,112		2,981,112	3,205	2,974,729	3,178
Private equity investments	31,876		31,876	—	1,168	30,708
Mutual funds held in Rabbi Trusts	10,001		10,001	10,001	—	—
Loans, net of deferred fees and costs	19,541,690		19,254,199	—	—	19,254,199
Derivative assets	64,662		64,662	—	64,662	—
Financial Liabilities
Trading account liabilities	$	91	91	—	91	—
Non-interest bearing deposits	5,665,527		5,665,527	—	5,665,527	—
Interest bearing deposits	15,391,517		15,415,160	—	15,415,160	—
Federal funds purchased and other   short-term borrowings	201,243		201,243	—	201,243	—
Salary stock units	1,888		1,888	1,888	—	—
Long-term debt	1,726,455		1,784,223	—	1,784,223	—
Derivative liabilities	66,393		66,393	—	63,437	2,956

	December 31, 2011
(in thousands)	Carrying Value	Fair Value
Financial assets
Cash and cash equivalents	510,423	510,423
Interest bearing funds with Federal Reserve Bank	1,567,006	1,567,006
Interest earning deposits with banks	13,590	13,590
Federal funds sold and securities purchased under resale agreements	158,916	158,916
Trading account assets	16,866	16,866
Mortgage loans held for sale	161,509	161,509
Impaired/other loans held for sale	30,156	30,156
Investment securities available for sale	3,690,125	3,690,125
Private equity investments	22,015	22,015
Mutual funds held in Rabbi Trusts	10,353	10,353
Loans, net of deferred fees and costs	20,079,813	19,621,279
Derivative assets	84,923	84,923
Financial liabilities
Non-interest bearing deposits	5,366,868	5,366,868
Interest bearing deposits	17,044,884	17,092,784
Federal funds purchased and other short-term borrowings	313,757	313,757
Long-term debt	1,364,727	1,302,560
Derivative liabilities	96,574	96,574