Synovus Financial Corp. reported financial results for the quarter ended March 31, 2023. “Our first quarter results reflect a disciplined approach to execution, with pre-provision net revenue of $292 million, a 30% increase year over year,” said Synovus Chairman, CEO and President Kevin Blair. “Our stable deposit base and record deposit production are testaments to the quality of our clients and ability to expand existing and attract new relationships even in this environment. The recent J.D. Power recognition as the Southeast’s number one bank in retail client satisfaction and trust affirms the value of our commitment to tailored solutions, local market presence and personal relationships. Our team continues to exercise prudence and perseverance as we focus on profitable growth and meet the future needs of clients and communities we serve.”

First Quarter 2023 Highlights

• Net income available to common shareholders of $193.9 million, or $1.32 per diluted share, up $0.21 compared to the first quarter 2022.
• Total revenue of $613.9 million increased $116.3 million, or 23%, compared to the first quarter 2022, driven by loan growth and higher interest rates, in addition to growth in core client fee income, excluding mortgage, of 19% year over year.
• Pre-provision net revenue of $292.0 million increased $66.9 million, or 30%, compared to the first quarter 2022.
• Period-end loans increased $328.6 million sequentially, primarily driven by new commercial production offset by a decline in third-party consumer loans from both runoff and a move to held-for-sale of $424 million.
• Total deposits increased $1.08 billion sequentially, or 2%, a result of growth in both core as well as brokered deposits.
• Fortified our liquidity position and currently maintain over $25 billion⁽¹⁾ of contingent liquidity across a diverse set of sources.
• Credit quality metrics continue to remain at strong levels with a net charge-off ratio of 0.17% and a modest increase in the ACL ratio to 1.17%. The NPL and NPA ratios both moved to 0.41%.
• Preliminary CET1 ratio of 9.76% increased 13 bps sequentially as capital generation continued to support client loan growth while also buffering capital levels given economic and regulatory uncertainty.

⁽¹⁾ As of April 17, 2023

First Quarter Summary
	Reported												Adjusted
(dollars in thousands)		1Q23				4Q22				1Q22				1Q23				4Q22				1Q22
Net income available to common shareholders	$	193,868			$	197,479			$	162,746			$	195,276			$	197,576			$	158,368
Diluted earnings per share		1.32				1.35				1.11				1.33				1.35				1.08
Total revenue		613,877				603,785				497,582				599,469				603,359				499,742
Total loans		44,044,939				43,716,353				40,169,150				N/A				N/A				N/A
Total deposits		49,953,936				48,871,559				48,656,244				N/A				N/A				N/A
Return on avg assets		1.36	%			1.38	%			1.22	%			1.37	%			1.39	%			1.19	%
Return on avg common equity		19.23				20.93				14.20				19.37				20.94				13.82
Return on avg tangible common equity		21.94				24.21				16.02				22.09				24.22				15.59
Net interest margin(1)		3.43				3.56				3.01				N/A				N/A				N/A
Efficiency ratio-TE(2)(3)		52.33				51.08				54.66				50.48				50.58				55.50
NCO ratio-QTD		0.17				0.12				0.19				N/A				N/A				N/A
NPA ratio		0.41				0.33				0.40				N/A				N/A				N/A
(1) NIM reflects Actual/Actual day count and includes other immaterial adjustments versus NIM previously reported.
(2) Taxable equivalent
(3) Adjusted tangible efficiency ratio

Balance Sheet

Loans*

(dollars in millions)

1Q23

4Q22

Linked  Quarter Change

Linked  Quarter %  Change

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