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Fair Value Accounting (Tables)
 12 Months Ended
Dec. 31, 2015
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, 2015 and 2014, 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, 2015 and 2014 were inconsequential.
 
December 31, 2015
(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    
$
—

 
2,922

 
—

 
2,922

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

 
1,078

 
—

 
1,078

State and municipal securities
—

 
1,097

 
—

 
1,097

Total trading securities
—

 
5,097

 
—

 
5,097

Mortgage loans held for sale
—

 
59,275

 
—

 
59,275

Investment securities available for sale:
 
 
 
 
 
 
 
U.S. Treasury securities
43,357

 
—

 
—

 
43,357

U.S. Government agency securities
—

 
13,623

 
—

 
13,623

Securities issued by U.S. Government sponsored enterprises
—

 
126,909

 
—

 
126,909

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

 
210,004

 
—

 
210,004

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

 
2,630,419

 
—

 
2,630,419

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

 
529,597

 
—

 
529,597

State and municipal securities
—

 
4,434

 
—

 
4,434

Equity securities
9,672

 
—

 
—

 
9,672

  Other investments(1)    
3,073

 
14,985

 
1,745

 
19,803

Total investment securities available for sale
56,102

 
3,529,971

 
1,745

 
3,587,818

Private equity investments
—

 
870

 
27,148

 
28,018

Mutual funds held in rabbi trusts
10,664

 
—

 
—

 
10,664

Derivative assets:
 
 
 
 
 
 
 
Interest rate contracts
—

 
25,580

 
—

 
25,580

Mortgage derivatives(2)
—

 
1,559

 
—

 
1,559

Total derivative assets
—

 
27,139

 
—

 
27,139

Liabilities
 
 
 
 
 
 
 
Trading account liabilities
—

 
1,032

 
—

 
1,032

Derivative liabilities:
 
 
 
 
 
 
 
Interest rate contracts
—

 
26,030

 
—

 
26,030

Visa derivative
—

 
—

 
1,415

 
1,415

Total derivative liabilities
$
—

 
26,030

 
1,415

 
27,445

 
 
 
 
 
 
 
 
 
December 31, 2014
(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
—

 
145

 
—

 
145

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

 
2,449

 
—

 
2,449

State and municipal securities
—

 
1,976

 
—

 
1,976

All other mortgage-backed securities
—

 
2,483

 
—

 
2,483

Other investments
—

 
6,810

 
—

 
6,810

Total trading securities
—

 
13,863

 
—

 
13,863

Mortgage loans held for sale
—

 
63,328

 
—

 
63,328

Investment securities available for sale:
 
 
 
 
 
 
 
U.S. Treasury securities
42,826

 
—

 
—

 
42,826

U.S. Government agency securities
—

 
27,324

 
—

 
27,324

Securities issued by U.S. Government sponsored enterprises
—

 
82,042

 
—

 
82,042

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

 
179,816

 
—

 
179,816

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

 
2,261,681

 
—

 
2,261,681

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

 
417,076

 
—

 
417,076

State and municipal securities
—

 
5,206

 
—

 
5,206

Equity securities
6,748

 
—

 
—

 
6,748

  Other investments(1)    
2,035

 
15,007

 
1,645

 
18,687

Total investment securities available for sale
51,609

 
2,988,152

 
1,645

 
3,041,406

Private equity investments
—

 
995

 
27,367

 
28,362

Mutual funds held in rabbi trusts
11,252

 
—

 
—

 
11,252

Derivative assets:
 
 
 
 
 
 
 
Interest rate contracts
—

 
30,904

 
—

 
30,904

Mortgage derivatives (2)
—

 
1,213

 
—

 
1,213

Total derivative assets
—

 
32,117

 
—

 
32,117

Liabilities
 
 
 
 
 
 
 
Trading account liabilities
—

 
2,100

 
—

 
2,100

Salary stock units
1,206

 
—

 
—

 
1,206

Derivative liabilities:
 
 
 
 
 
 
 
Interest rate contracts
—

 
31,398

 
—

 
31,398

Mortgage derivatives (2)
 
 
753

 
 
 
753

Visa derivative
—

 
—

 
1,401

 
1,401

Total derivative liabilities
$
—

 
32,151

 
1,401

 
33,552

 
 
 
 
 
 
 
 

(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.
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 measured 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)
2015
 
2014
 
2013
Changes in fair value included in net income:
 
 
 
 
 
Mortgage loans held for sale
$
(742
)
 
1,399

 
(5,566
)
Mortgage loans held for sale:
 
 
 
 
 
Fair value
59,275

 
63,328

 
45,384

Unpaid principal balance
58,177

 
61,488

 
44,943

Fair value less aggregate unpaid principal balance
1,098

 
1,840

 
441

 
 
 
 
 
 
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, 2015 and 2014 (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 2015 and 2014, Synovus did not have any transfers between levels in the fair value hierarchy.
 
2015
(in thousands)
Investment Securities Available for Sale
 
 Private Equity Investments
 
Visa Derivative
Beginning balance, January 1,
$
1,645

 
27,367

 
(1,401
)
Total gains (losses) realized/unrealized:
 
 
 
 
 
Included in earnings    
—

 
(219
)
 
(1,464
)
Unrealized gains (losses) included in other comprehensive income
100

 
—

 
—

Purchases
—

 
—


—

Sales
—

 
—

 
—

Issuances
—

 
—

 
—

Settlements
—

 
—

 
1,450

Amortization of discount/premium
—

 
—

 
—

Transfers in and/or out of Level 3
—

 
—

 
—

Ending balance, December 31,
$
1,745

 
27,148

 
(1,415
)
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,    
$
100

 
(219
)
 
(1,464
)
 
 
 
 
 
 
 
2014
(in thousands)
Investment Securities Available for Sale
 
 Private Equity Investments
 
Visa Derivative
Beginning balance, January 1,
$
2,350

 
27,745

 
(2,706
)
Total gains (losses) realized/unrealized:
 
 
 
 
 
Included in earnings    
(88
)
 
(378
)
 
(3,041
)
Unrealized gains (losses) included in other comprehensive income
(77
)
 
—

 
—

Purchases
—

 
—

 
—

Sales
—

 
—

 
—

Issuances
—

 
—

 
—

Settlements
(540
)
 
—

 
4,346

Amortization of discount/premium
—

 
—

 
—

Transfers in and/or out of Level 3
—

 
—

 
—

Ending balance, December 31,
$
1,645

 
27,367

 
(1,401
)
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,    
$
(88
)
 
(378
)
 
(3,041
)
 
 
 
 
 
 
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.


As of December 31, 2015
 
Fair Value Adjustments
for the Year Ended December 31, 2015
(in thousands)
Level 1
 
Level 2
 
Level 3
 
Impaired loans*        
$
—

 
—

 
$
11,264

 
4,144

Other loans held for sale
—

 
—

 
425

 
31

Other real estate
—

 
—

 
23,519

 
4,927

Other assets held for sale
—

 
—

 
3,425

 
1,322

 
 
 
 
 
 
 
 
 
As of December 31, 2014
 
Fair Value Adjustments
for the Year Ended December 31, 2014
 
Level 1
 
Level 2
 
Level 3
 
Impaired loans*    
$
—

 
—

 
$
28,588

 
13,716

Other loans held for sale
—

 
—

 
3,411

 
6,833

Other real estate
—

 
—

 
32,046

 
7,769

Other assets held for sale
—

 
—

 
3,718

 
2,076

 
 
 
 
 
 
 
 
* 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. The tables below present both the total balance as of the dates indicated for assets measured at fair value on a recurring basis and the assets measured at fair value on a non-recurring basis for which there was a fair value adjustment during the period.
December 31, 2015
(dollars in thousands)
 
Level 3 Fair Value
 
Valuation Technique
Significant Unobservable Input
Range (Weighted Average)(1)
Assets measured at fair value on a recurring basis
 
 
 
 
 
 
 
 
 
Investment Securities Available for Sale
 
 
 
 
 
 
 
 
 
 
 
Other investments:
 
 
 
 
 
 
 
 
 
 
 
Trust preferred securities
 
$
1,745

 
Discounted cash flow analysis
Credit spread embedded in discount rate
427-527 bps (477 bps)
 
 
 
 
 
Discount for lack of marketability(2)
0%-10% (0%)
 
 
 
 
 
 
 
Private equity investments
 
27,148

 
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 (2)  
N/A
 
 
 
 
 
 
 
Visa derivative liability
 
1,415

 
Internal valuation
Estimated future cumulative deposits to the litigation escrow for settlement of the Covered Litigation, and estimated future monthly fees payable to the derivative counterparty
N/A
 
 
 
 
 
 
 



December 31, 2015
(dollars in thousands)
 
Level 3 Fair Value
 
Valuation Technique
Significant Unobservable Input
Range
(Weighted Average)(1)
Assets measured at fair value on a non-recurring basis
 
 
Collateral-dependent impaired loans
 
$
11,264

 
Third-party appraised value of collateral less estimated selling costs
Discount to appraised value (3)
Estimated selling costs
0%-100% (51%) 0%-10% (7%)
 
 
 
 
 
 
 
Other loans held for sale
 
425

 
Third-party appraised value of collateral less estimated selling costs
Discount to appraised value (3)
Estimated selling costs
0%-11% (7%) 0%-10% (7%)
 
 
 
 
 
 
 
Other real estate
 
23,519

 
Third-party appraised value less estimated selling costs
Discount to appraised value (3)
Estimated selling costs
0%-20% (7%) 0%-10% (7%)
 
 
 
 
 
 
 
Other assets held for sale
 
3,425

 
Third-party appraised value less estimated selling costs or BOV
Discount to appraised value (3)
Estimated selling costs
0%-75% (42%) 0%-10% (7%)
(1) The range represents management's best estimate of the high and low end of the value that would be assigned to a particular input. For assets measured at fair value on a non-recurring basis, the weighted average is the measure of central tendencies; it is not the value that management is using for the asset or liability.
(2) Represents management's estimate of discount that market participants would require based on the instrument's lack of liquidity.
(3) 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.

December 31, 2014
(dollars in thousands)
 
Level 3 Fair Value
 
Valuation Technique
Significant Unobservable Input
Range (Weighted Average)(1)
Assets measured at fair value on a recurring basis
 
 
 
 
 
 
 
 
 
Investment Securities Available for Sale
 
 
 
 
 
 
 
 
 
 
 
Other investments:
 
 
 
 
 
 
 
 
 
 
 
Trust preferred securities
 
$
1,645

 
Discounted cash flow analysis
Credit spread embedded in discount rate
600-675 bps (639 bps)
 
 
 
 
 
Discount for lack of marketability(2)
0%-10% (0%)
 
 
 
 
 
 
 
Private equity investments
 
27,367

 
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 (2)  
N/A
 
 
 
 
 
 
 
Visa derivative liability
 
1,401

 
Internal valuation
Estimated future cumulative deposits to the litigation escrow for settlement of the Covered Litigation, and estimated future monthly fees payable to the derivative counterparty
N/A
 
 
 
 
 
 
 

December 31, 2014
(dollars in thousands)
 
Level 3 Fair Value
 
Valuation Technique
Significant Unobservable Input
Range
(Weighted Average)(1)
Assets measured at fair value on a non-recurring basis
 
 
Collateral-dependent impaired loans
 
$
28,588

 
Third-party appraised value of collateral less estimated selling costs
Discount to appraised value (3)
Estimated selling costs
0%-100% (46%) 0%-10% (7%)
 
 
 
 
 
 
 
Other loans held for sale
 
3,411

 
Third-party appraised value of collateral less estimated selling costs
Discount to appraised value (3)
Estimated selling costs
0%-11% (7%) 0%-10% (7%)
 
 
 
 
 
 
 
Other real estate
 
32,046

 
Third-party appraised value less estimated selling costs
Discount to appraised value (3)
Estimated selling costs
0%-61% (16%) 0%-10% (7%)
 
 
 
 
 
 
 
Other assets held for sale
 
3,718

 
Third-party appraised value less estimated selling costs or BOV
Discount to appraised value (3)
Estimated selling costs
0%-100% (49%) 0%-10% (7%)
(1) The range represents management's best estimate of the high and low end of the value that would be assigned to a particular input. For assets measured at fair value on a non-recurring basis, the weighted average is the measure of central tendencies; it is not the value that management is using for the asset or liability.
(2) Represents management's estimate of discount that market participants would require based on the instrument's lack of liquidity.
(3) 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.
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, 2015 and 2014 are as follows:
 
December 31, 2015

(in thousands)
Carrying Value
 
Fair Value
 
Level 1
 
Level 2
 
Level 3
Financial Assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
367,092

 
367,092

 
367,092

 
—

 
—

Interest bearing funds with Federal Reserve Bank
829,887

 
829,887

 
829,887

 
—

 
—

Interest earning deposits with banks
17,387

 
17,387

 
17,387

 
—

 
—

Federal funds sold and securities purchased under resale agreements
69,819

 
69,819

 
69,819

 
—

 
—

Trading account assets
5,097

 
5,097

 
—

 
5,097

 
—

Mortgage loans held for sale
59,275

 
59,275

 
—

 
59,275

 
—

Other loans held for sale
425

 
425

 
—

 
—

 
425

Investment securities available for sale
3,587,818

 
3,587,818

 
56,102

 
3,529,971

 
1,745

Private equity investments
28,018

 
28,018

 
—

 
870

 
27,148

Mutual funds held in rabbi trusts
10,664

 
10,664

 
10,664

 
—

 
—

Loans, net of deferred fees and costs
22,429,565

 
22,192,903

 
—

 
—

 
22,192,903

Derivative assets
27,139

 
27,139

 
—

 
27,139

 
—

Financial Liabilities
 
 
 
 
 
 
 
 
 
Trading account liabilities
1,032

 
1,032

 
—

 
1,032

 
—

Non-interest bearing deposits
6,732,970

 
6,732,970

 
—

 
6,732,970

 
—

Interest bearing deposits
16,509,691

 
16,516,222

 
—

 
16,516,222

 
—

Federal funds purchased, other short-term borrowings and other short-term liabilities
177,025

 
177,025

 
177,025

 
—

 
—

Long-term debt
2,186,893

 
2,244,376

 
—

 
2,244,376

 
—

Derivative liabilities
$
27,445

 
27,445

 
—

 
26,030

 
1,415

 
 
 
 
 
 
 
 
 
 
 
December 31, 2014

(in thousands)
Carrying Value
 
Fair Value
 
Level 1
 
Level 2
 
Level 3
Financial assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
485,489

 
485,489

 
485,489

 
—

 
—

Interest bearing funds with Federal Reserve Bank
721,362

 
721,362

 
721,362

 
—

 
—

Interest earning deposits with banks
11,810

 
11,810

 
11,810

 
—

 
—

Federal funds sold and securities purchased under resale agreements
73,111

 
73,111

 
73,111

 
—

 
—

Trading account assets
13,863

 
13,863

 
13,863

 
—

 
—

Mortgage loans held for sale
63,328

 
63,328

 
—

 
63,328

 
—

Other loans held for sale
3,606

 
3,606

 
—

 
—

 
3,606

Investment securities available for sale
3,041,406

 
3,041,406

 
51,609

 
2,988,152

 
1,645

Private equity investments
28,362

 
28,362

 
—

 
995

 
27,367

Mutual funds held in Rabbi Trusts
11,252

 
11,252

 
11,252

 
—

 
—

Loans, net of deferred fees and costs
21,097,699

 
20,872,939

 
—

 
—

 
20,872,939

Derivative assets
32,117

 
32,117

 
—

 
32,117

 
—

Financial liabilities
 
 
 
 
 
 
 
 
 
Trading account liabilities
$
2,100

 
2,100

 
—

 
2,100

 
—

Non-interest bearing deposits
6,228,472

 
6,228,472

 
—

 
6,228,472

 
—

Interest bearing deposits
15,303,228

 
15,299,372

 
—

 
15,299,372

 
—

Federal funds purchased, other short-term borrowings, and other short-term liabilities
126,916

 
126,916

 
126,916

 
—

 
—

Salary stock units
1,206

 
1,206

 
1,206

 
—

 
—

Long-term debt
2,140,319

 
2,191,279

 
—

 
2,191,279

 
—

Derivative liabilities
33,553

 
33,553

 
—

 
32,151

 
1,401