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Segment Reporting
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting
Note 10 - Segment Reporting
Synovus' business segments are based on the products and services provided or the clients served and reflect the manner in which financial information is evaluated by the chief operating decision maker. During the second quarter of 2023, Synovus updated its internal management reporting structure to transfer Capital Markets activities and related personnel from the Financial Management Services segment to the Wholesale Banking segment. Accordingly, its operating segment reporting structure was also updated. Synovus has four major reportable business segments: Wholesale Banking, Community Banking, Consumer Banking, and Financial Management Services, with functional activities such as treasury, technology, operations, marketing, finance, enterprise risk, legal, human resources, corporate communications, executive management, among others, included in Treasury and Corporate Other.
Business segment results are determined based upon Synovus' management reporting system, which assigns balance sheet and income statement items to each of the business segments. Certain assets, liabilities, revenue, and expense not allocated or attributable to a particular business segment are included in Treasury and Corporate Other. Synovus's third-party consumer loans and loans held for sale, PPP loans, as well as CIB are included in Treasury and Corporate Other. The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to GAAP. As a result, reported segment results are not necessarily comparable with similar information reported by other financial institutions.
The Wholesale Banking business segment serves primarily larger corporate and governmental clients by providing commercial lending, capital markets, deposit, and capital markets services through specialty teams including middle market, CRE, senior housing, national accounts, premium finance, structured lending, healthcare, asset-based lending, public finance, restaurant services, community investment capital, and capital markets.
The Community Banking business segment primarily serves small and medium-sized commercial clients as well as individual private wealth clients using a relationship-based approach. The commercial component of this segment focuses on
locally owned and operated businesses. Private wealth services are delivered to the individuals operating the businesses as well as other individuals in the communities in which the Community Bank operates. A comprehensive set of banking products are offered to the client set, including a full suite of lending, payments, and depository products as well as financial planning services.
The Consumer Banking business segment serves individual and small business clients through its branch and ATM network, in addition to digital and telephone channels. This segment provides individuals and small businesses with an array of comprehensive banking products and services, including depository accounts, credit and debit cards, payment solutions, goal-based planning, home equity and other consumer loans, and small business lending solutions.
The Financial Management Services business segment serves its clients by providing mortgage, trust services, professional portfolio management for fixed-income securities, securities underwriting and distribution, the execution of securities transactions as a broker/dealer, asset management, financial planning, and family office services, as well as the provision of individual investment advice on equity and other securities.
Synovus uses a centralized FTP methodology to attribute appropriate net interest income to the business segments. The intent of the FTP methodology is to transfer interest rate risk from the business segments by providing matched duration funding of assets and liabilities. The result is to centralize the financial impact, management, and reporting of interest rate risk in the Treasury and Corporate Other function, where it can be centrally monitored and managed. Treasury and Corporate Other includes certain assets and/or liabilities managed within that function. Additionally, Treasury and Corporate Other also charges (credits) an internal cost of funds for assets held in (or pays for funding provided by) each business segment. The process for determining FTP is based on a number of factors and assumptions, including prevailing market interest rates, the expected lives of various assets and liabilities, and the Company's broader funding profile.
The following tables present certain financial information for each reportable business segment for the three and nine months ended September 30, 2023 and 2022. The application and development of management reporting methodologies is a dynamic process and is subject to periodic enhancements. As these enhancements are made, financial results presented by each reportable business segment may be periodically revised. Loan and deposit transfers occur from time to time between reportable business segments primarily to maintain the migration of clients and relationship managers between segments. Prior periods have been adjusted accordingly.
Three Months Ended September 30, 2023
(in thousands)Wholesale BankingCommunity BankingConsumer BankingFinancial Management ServicesTreasury and Corporate OtherSynovus Consolidated
Net interest income $213,485 $107,446 $153,545 $17,771 $(49,088)$443,159 
Non-interest revenue10,329 14,161 18,901 48,348 15,400 107,139 
Non-interest expense62,542 39,394 51,737 43,094 156,765 353,532 
Pre-provision net revenue (PPNR)$161,272 $82,213 $120,709 $23,025 $(190,453)$196,766 
Three Months Ended September 30, 2022
(in thousands)Wholesale BankingCommunity BankingConsumer BankingFinancial Management ServicesTreasury and Corporate OtherSynovus Consolidated
Net interest income$175,342 $105,756 $124,446 $17,076 $55,299 $477,919 
Non-interest revenue9,790 11,768 21,498 46,615 14,627 104,298 
Non-interest expense29,888 32,954 50,871 42,620 137,677 294,010 
Pre-provision net revenue (PPNR)$155,244 $84,570 $95,073 $21,071 $(67,751)$288,207 
Nine Months Ended September 30, 2023
(in thousands)Wholesale BankingCommunity BankingConsumer BankingFinancial Management ServicesTreasury and Corporate OtherSynovus Consolidated
Net interest income$606,919 $329,093 $466,289 $51,452 $(74,311)$1,379,442 
Non-interest revenue39,980 53,202 60,611 150,639 48,109 352,541 
Non-interest expense129,531 108,096 152,159 129,747 463,033 982,566 
Pre-provision net revenue (PPNR)$517,368 $274,199 $374,741 $72,344 $(489,235)$749,417 
Nine Months Ended September 30, 2022
(in thousands)Wholesale BankingCommunity BankingConsumer BankingFinancial Management ServicesTreasury and Corporate OtherSynovus Consolidated
Net interest income$501,326 $302,774 $325,578 $52,895 $112,982 $1,295,555 
Non-interest revenue27,473 37,819 65,236 136,975 39,394 306,897 
Non-interest expense83,630 96,043 146,365 131,023 391,450 848,511 
Pre-provision net revenue (PPNR)$445,169 $244,550 $244,449 $58,847 $(239,074)$753,941 
September 30, 2023
(dollars in thousands)Wholesale BankingCommunity BankingConsumer BankingFinancial Management ServicesTreasury and Corporate OtherSynovus Consolidated
Loans, net of deferred fees and costs$26,271,923 $7,938,010 $2,817,383 $5,349,276 $1,303,318 $43,679,910 
Total deposits$13,037,012 $10,205,004 $18,745,835 $183,329 $8,032,710 $50,203,890 
Total full-time equivalent employees344 585 1,549 657 1,781 4,916 
December 31, 2022
(dollars in thousands)Wholesale BankingCommunity BankingConsumer BankingFinancial Management ServicesTreasury and Corporate OtherSynovus Consolidated
Loans, net of deferred fees and costs$25,865,667 $8,138,606 $2,933,504 $5,157,014 $1,621,562 $43,716,353 
Total deposits$12,942,732 $10,798,409 $18,561,521 $102,496 $6,466,401 $48,871,559 
Total full-time equivalent employees337 598 1,532 768 1,792 5,027