XML 21 R10.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Investment Securities
 6 Months Ended
Jun. 30, 2024
Investments [Abstract]  
Investment Securities
Note 2 - Investment Securities
The amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities at June 30, 2024 and December 31, 2023 are summarized below.
June 30, 2024
(in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Investment securities held to maturity:
Mortgage-backed securities issued by U.S. Government sponsored enterprises$2,668,068 $— $(29,997)$2,638,071 
Total investment securities held to maturity(1)
$2,668,068 $— $(29,997)$2,638,071 
Investment securities available for sale:
U.S. Treasury securities$1,177,006 $1,456 $(4,167)$1,174,295 
U.S. Government agency securities29,993 — (1,150)28,843 
Mortgage-backed securities issued by U.S. Government agencies 1,518,224 1,311 (119,043)1,400,492 
Mortgage-backed securities issued by U.S. Government sponsored enterprises 2,272,694 287 (256,936)2,016,045 
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises 659,706 — (111,709)547,997 
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises1,904,765 4,118 (41,757)1,867,126 
Corporate debt securities and other debt securities9,059 — (176)8,883 
Total investment securities available for sale(2)
$7,571,447 $7,172 $(534,938)$7,043,681 
December 31, 2023
(in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Investment securities available for sale:
U.S. Treasury securities$588,082 $9,547 $— $597,629 
U.S. Government agency securities29,993 — (1,053)28,940 
Mortgage-backed securities issued by U.S. Government agencies 1,021,612 2,037 (97,985)925,664 
Mortgage-backed securities issued by U.S. Government sponsored enterprises 7,523,399 1,192 (1,094,212)6,430,379 
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises 692,487 — (104,892)587,595 
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises1,226,672 18,764 (35,653)1,209,783 
Corporate debt securities and other debt securities9,009 — (337)8,672 
Total investment securities available for sale(2)
$11,091,254 $31,540 $(1,334,132)$9,788,662 
(1) The amounts reported exclude accrued interest receivable on investment securities HTM of $5.9 million at June 30, 2024, which is presented as a component of other assets on the consolidated balance sheets. The amortized cost basis of investment securities HTM includes a discount of $(687.9) million at June 30, 2024 related to the unamortized portion of unrealized losses on investment securities HTM.
(2) The amounts reported exclude accrued interest receivable on investment securities AFS of $27.7 million and $26.6 million at June 30, 2024 and December 31, 2023, respectively, which is presented as a component of other assets on the consolidated balance sheets.
At June 30, 2024, investment securities AFS and investment securities HTM with carrying values of $2.54 billion and $2.37 billion, respectively, were pledged to secure certain deposits and other liabilities, as required by law or contractual agreements.            
At December 31, 2023, investment securities AFS with a carrying value of $5.19 billion were pledged to secure certain deposits and other liabilities, as required by law or contractual agreements.        
On April 1, 2024, Synovus transferred $2.72 billion in fair value of mortgage-backed securities issued by U.S. Government sponsored enterprises from AFS to HTM. At the time of transfer, $537.4 million of unrealized losses, net of tax, were retained in accumulated other comprehensive income and will be amortized over the remaining life of the securities. The transfer of these
securities from AFS to HTM reduces our exposure to potential capital volatility associated with investment security market price fluctuations.
Additionally, during the second quarter of 2024, as part of an overall strategic repositioning of the investment securities portfolio, Synovus sold at amortized cost $1.62 billion of mortgage-backed securities issued by U.S. Government sponsored enterprises from AFS, which resulted in realized net losses of $256.7 million. Synovus also purchased $1.48 billion in total principal of AFS securities including U.S. Treasury securities, mortgage-backed securities issued by U.S. Government agencies, and commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises.
Gross unrealized losses on investment securities AFS and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2024 and December 31, 2023 are presented below.
June 30, 2024
Less than 12 Months12 Months or LongerTotal
(in thousands)Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
U.S. Treasury securities$675,205 $(4,167)$— $— $675,205 $(4,167)
U.S. Government agency securities— — 28,844 (1,150)28,844 (1,150)
Mortgage-backed securities issued by U.S. Government agencies 441,549 (2,310)673,891 (116,733)1,115,440 (119,043)
Mortgage-backed securities issued by U.S. Government sponsored enterprises 127,603 (3,143)1,837,414 (253,793)1,965,017 (256,936)
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises — — 547,997 (111,709)547,997 (111,709)
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises703,158 (4,621)308,126 (37,136)1,011,284 (41,757)
Corporate debt securities and other debt securities— — 8,883 (176)8,883 (176)
Total$1,947,515 $(14,241)$3,405,155 $(520,697)$5,352,670 $(534,938)
December 31, 2023
Less than 12 Months12 Months or LongerTotal
(in thousands)Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
U.S. Government agency securities$— $— $28,940 $(1,053)$28,940 $(1,053)
Mortgage-backed securities issued by U.S. Government agencies 159,402 (1,268)565,358 (96,717)724,760 (97,985)
Mortgage-backed securities issued by U.S. Government sponsored enterprises 215,917 (1,193)6,045,914 (1,093,019)6,261,831 (1,094,212)
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises — — 587,595 (104,892)587,595 (104,892)
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises34,406 (205)276,675 (35,448)311,081 (35,653)
Corporate debt securities and other debt securities— — 8,672 (337)8,672 (337)
Total$409,725 $(2,666)$7,513,154 $(1,331,466)$7,922,879 $(1,334,132)
As of June 30, 2024, Synovus had 47 investment securities AFS in a loss position for less than 12 months and 221 investment securities AFS in a loss position for 12 months or longer. As of June 30, 2024, Synovus does not intend to sell investment securities AFS in an unrealized loss position prior to the recovery of the unrealized loss, which may not be until maturity, and has the ability and intent to hold those securities for that period of time. Additionally, Synovus is not currently aware of any circumstances which will require it to sell any of the AFS securities that are in an unrealized loss position prior to the respective securities' recovery of all such unrealized losses. As such, no write-downs to the amortized cost basis of the portfolio were recorded at June 30, 2024.
At June 30, 2024, no ACL was established for investment securities AFS. Substantially all of the unrealized losses on the securities portfolio were the result of changes in market interest rates compared to the date the securities were acquired rather than the credit quality of the issuers or underlying loans. U.S. Treasury and agency securities and agency mortgage-backed securities are issued, guaranteed or otherwise supported by the United States government, an agency of the United States government, or a government sponsored enterprise.
As of June 30, 2024, all investment securities HTM were rated investment grade, supported by U.S. government agencies and have no history of credit losses supporting the application of a zero-credit loss assumption and no allowance for credit losses.
The amortized cost and fair value by contractual maturity of investment securities HTM and investment securities AFS at June 30, 2024 are shown below. The expected life of MBSs or CMOs may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. For purposes of the maturity table, MBSs and CMOs, which are not due at a single maturity date, have been classified based on the final contractual maturity date.
(in thousands)Within One
 Year		1 to 5
Years		5 to 10
 Years		More Than
 10 Years		Total
Investment securities HTM
Mortgage-backed securities issued by U.S. Government sponsored enterprises
Amortized cost$— $— $— $2,668,068 $2,668,068 
Fair value— — — 2,638,071 2,638,071 
Investment securities AFS
U.S. Treasury securities
Amortized cost$20,101 $725,093 $431,812 $— $1,177,006 
Fair value20,101 723,824 430,370 — 1,174,295 
U.S. Government agency securities
Amortized cost— 29,993 — — 29,993 
Fair value— 28,843 — — 28,843 
Mortgage-backed securities issued by U.S. Government agencies
Amortized cost— 55 3 1,518,166 1,518,224 
Fair value— 53 3 1,400,436 1,400,492 
Mortgage-backed securities issued by U.S. Government sponsored enterprises
Amortized cost— — — 2,272,694 2,272,694 
Fair value— — — 2,016,045 2,016,045 
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises
Amortized cost— 34 9,314 650,358 659,706 
Fair value— 33 8,951 539,013 547,997 
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises
Amortized cost— 906,290 981,249 17,226 1,904,765 
Fair value— 891,131 961,318 14,677 1,867,126 
Corporate debt securities and other debt securities
Amortized cost— 9,059 — — 9,059 
Fair value— 8,883 — — 8,883 
Gross gains and gross losses on sales of investment securities AFS for the three and six months ended June 30, 2024 and 2023 are presented below. The specific identification method is used to reclassify gains and losses out of other comprehensive income (loss) at the time of sale.
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Gross realized gains on sales$— $— $— $1,030 
Gross realized losses on sales(256,660)— (256,660)— 
Investment securities gains (losses), net$(256,660)$— $(256,660)$1,030