Fair Value Accounting (Tables)

3 Months Ended

Mar. 31, 2016

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 March 31, 2016 and December 31, 2015, 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 betweens levels during the three months ended March 31, 2016 and year ended December 31, 2015 were inconsequential.

	March 31, 2016
(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	—		2,727	—	2,727
Collateralized mortgage obligations issued by   U.S. Government sponsored enterprises	—		395	—	395
State and municipal securities	—		1,481	—	1,481
Other investments	15		183	—	198
Total trading securities	$	15	4,786	—	4,801
Mortgage loans held for sale	—		62,867	—	62,867
Investment securities available for sale:
U.S. Treasury securities	43,706		—	—	43,706
U.S. Government agency securities	—		13,550	—	13,550
Securities issued by U.S. Government sponsored enterprises	—		126,602	—	126,602
Mortgage-backed securities issued by U.S. Government agencies	—		193,896	—	193,896
Mortgage-backed securities issued by U.S. Government sponsored enterprises	—		2,622,134	—	2,622,134
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	—		550,055	—	550,055
State and municipal securities	—		4,039	—	4,039
Equity securities	8,204		—	—	8,204
Other investments(1)	3,134		15,286	1,638	20,058
Total investment securities available for sale	$	55,044	3,525,562	1,638	3,582,244
Private equity investments	—		750	26,757	27,507
Mutual funds held in rabbi trusts	11,035		—	—	11,035
Derivative assets:
Interest rate contracts	—		33,788	—	33,788
Mortgage derivatives(2)	—		2,170	—	2,170
Total derivative assets	$	—	35,958	—	35,958
Liabilities
Trading account liabilities	—		1,573	—	1,573
Derivative liabilities:
Interest rate contracts	—		34,232	—	34,232
Mortgage derivatives(2)	—		762	—	762
Visa derivative	—		—	1,415	1,415
Total derivative liabilities	$	—	34,994	1,415	36,409

	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

⁽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.

Changes in Fair Value Included in Net Income
	For the Three Months Ended March 31,
(in thousands)	2016		2015
Mortgage loans held for sale	$	971	410

Mortgage Loans Held for Sale
(in thousands)	As of March 31, 2016		As of December 31, 2015
Fair value	$	62,867	59,275
Unpaid principal balance	60,798		58,177
Fair value less aggregate unpaid principal balance	2,069		1,098

Changes in Level 3 Fair Value Measurements

The table below includes a roll-forward of the amounts on the consolidated balance sheet for the three months ended March 31, 2016 and 2015 (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 three months ended March 31, 2016 and 2015, Synovus did not have any transfers between levels in the fair value hierarchy.

	Three Months Ended March 31,
	2016							2015
(in thousands)	Investment Securities Available for Sale			Private Equity Investments		Visa Derivative		Investment Securities Available for Sale	Private Equity Investments		Visa Derivative
Beginning balance, January 1,	$	1,745		27,148		(1,415	)	1,645	27,367		(1,401	)
Total gains (losses) realized/unrealized:
Included in earnings	—			(391	)	(360	)	—	(286	)	(375	)
Unrealized gains (losses) included in other comprehensive income	(107		)	—		—		9	—		—
Settlements	—			—		360		—	—		351
Ending balance, March 31,	$	1,638		26,757		(1,415	)	1,654	27,081		(1,425	)
Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at March 31,	$	—		(391	)	(360	)	—	(286	)	(375	)

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.

	March 31, 2016						December 31, 2015
(in thousands)	Level 1		Level 2	Level 3		Total	Level 1	Level 2	Level 3	Total
Impaired loans*	$	—	—	$	4,452	4,452	—	—	11,264	11,264
Other loans held for sale	—		—	—		—	—	—	425	425
Other real estate	—		—	11,910		11,910	—	—	23,519	23,519
Other assets held for sale	—		—	1,200		1,200	—	—	3,425	3,425

Assets Measured at Fair Value on a Nonrecurring Basis

The following table presents fair value adjustments recognized in earnings for the three months ended March 31, 2016 and 2015 for the assets measured at fair value on a non-recurring basis.

	Three Months Ended March 31,
(in thousands)	2016		2015
Impaired loans*	$	1,270	1,045
Other real estate	1,643		6,681
Other assets held for sale	1,032		—

^* Impaired loans that are collateral-dependent.

Fair Value Inputs, Assets, Quantitative Information

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. 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.

			March 31, 2016	December 31, 2015
	Valuation Technique	Significant Unobservable Input	Range (Weighted Average)(1)	Range (Weighted Average)(1)
Assets measured at fair value on a non-recurring basis
Collateral dependent impaired loans	Third-party appraised value of collateral less estimated selling costs	Discount to appraised value (2) Estimated selling costs	0% - 83% (29%) 0% - 10% (7%)	0%-100% (51%) 0%-10% (7%)
Other loans held for sale	Third-party appraised value of collateral less estimated selling costs	Discount to appraised value (2) Estimated selling costs		0%-11% (7%) 0%-10% (7%)
Other real estate	Third-party appraised value of collateral less estimated selling costs	Discount to appraised value (2) Estimated selling costs	0% - 10% (7%) 0% - 10% (7%)	0%-20% (7%) 0%-10% (7%)
Other assets held for sale	Third-party appraised value of collateral less estimated selling costs or BOV	Discount to appraised value (2) Estimated selling costs	0%-100% (85%) 0%-10% (7%)	0%-75% (42%) 0%-10% (7%)

⁽¹⁾ The range represents management's best estimate of the high and low 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⁾ 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.

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.

			March 31, 2016	December 31, 2015
	Valuation Technique	Significant Unobservable Input	Range (Weighted Average)(1)	Range (Weighted Average)(1)
Assets measured at fair value on a recurring basis
Investment Securities Available for Sale:
Other Investments:
Trust preferred securities	Discounted cash flow analysis	Credit spread embedded in discount rate	475-575 bps (524 bps)	427-527 bps (477 bps)
		Discount for lack of marketability(2)	0%-10% (0%)	0%-10% (0%)
Private equity investments	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	N/A	N/A
Visa derivative liability	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	N/A

⁽¹⁾ The range represents management's best estimate of the high and low of the value that would be assigned to a particular input.

⁽²⁾ Represents management's estimate of discount that market participants would require based on the instrument's lack of liquidity.

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

he carrying and estimated fair values of financial instruments, as well as the level within the fair value hierarchy, as of March 31, 2016 and December 31, 2015 are as follows:

	March 31, 2016
(in thousands)	Carrying Value	Fair Value	Level 1	Level 2	Level 3
Financial assets
Cash and cash equivalents	352,060	352,060	352,060	—	—
Interest bearing funds with Federal Reserve Bank	908,527	908,527	908,527	—	—
Interest earning deposits with banks	21,686	21,686	21,686	—	—
Federal funds sold and securities purchased under resale agreements	76,300	76,300	76,300	—	—
Trading account assets	4,801	4,801	15	4,786	—
Mortgage loans held for sale	62,867	62,867	—	62,867	—
Investment securities available for sale	3,582,244	3,582,244	55,044	3,525,562	1,638
Private equity investments	27,507	27,507	—	750	26,757
Mutual funds held in rabbi trusts	11,035	11,035	11,035	—	—
Loans, net of deferred fees and costs	22,758,203	22,480,492	—	—	22,480,492
Derivative assets	35,958	35,958	—	35,958	—
Financial liabilities
Trading account liabilities	1,573	1,573	—	1,573	—
Non-interest bearing deposits	6,896,547	6,896,547	—	6,896,547	—
Interest bearing deposits	16,553,381	16,559,165	—	16,559,165	—
Federal funds purchased and securities sold under repurchase agreements	203,979	203,979	203,979	—	—
Long-term debt	2,360,865	2,458,126	—	2,458,126	—
Derivative liabilities	36,409	36,409	—	34,994	1,415

	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 and securities sold under repurchase agreements	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