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Loans and Allowance for Loan Losses

6 Months Ended

Jun. 30, 2020

Loans and Allowance for Loan Losses [Abstract]

Note 4 - Loans and Allowance for Loan Losses

The following tables provide a summary of current, accruing past due, and non-accrual loans by portfolio class as of June 30, 2020 and December 31, 2019.


Current, Accruing Past Due, and Non-accrual Loans
	June 30, 2020
(in thousands)	Current		Accruing 30-89 Days Past Due⁽¹⁾		Accruing 90 Days or Greater Past Due ⁽¹⁾		Total Accruing Past Due ⁽¹⁾		Non-accrual with an ALL ⁽¹⁾		Non-accrual without an ALL ⁽¹⁾		Total
Commercial, financial and agricultural	$	13,041,583	$	9,515	$	2,598	$	12,113	$	67,535	$	15,465	$	13,136,696
Owner-occupied	6,779,043		1,894		1,038		2,932		9,206		10,399		6,801,580
Total commercial and industrial	19,820,626		11,409		3,636		15,045		76,741		25,864		19,938,276
Investment properties	9,444,615		829		118		947		1,638		—		9,447,200
1-4 family properties	689,660		1,507		1,204		2,711		4,437		—		696,808
Land and development	680,445		469		46		515		2,302		265		683,527
Total commercial real estate	10,814,720		2,805		1,368		4,173		8,377		265		10,827,535
Consumer mortgages	5,786,762		7,176		—		7,176		17,086		352		5,811,376
Home equity lines	1,692,542		3,495		27		3,522		14,200		—		1,710,264
Credit cards	243,333		4,395		2,720		7,115		—		—		250,448
Other consumer loans	1,460,672		8,719		640		9,359		4,552		—		1,474,583
Total consumer	9,183,309		23,785		3,387		27,172		35,838		352		9,246,671
Total loans	$	39,818,655	$	37,999	$	8,391	$	46,390	$	120,956	$	26,481	$	40,012,482	(2)


	December 31, 2019
(in thousands)	Current		Accruing 30-89 Days Past Due		Accruing 90 Days or Greater Past Due		Total Accruing Past Due		Non-accrual		ASC 310-30 Loans⁽³⁾		Total
Commercial, financial and agricultural	$	9,124,285	$	38,916	$	1,206	$	40,122	$	56,017	$	1,019,135	$	10,239,559
Owner-occupied	5,691,095		5,164		576		5,740		9,780		823,196		6,529,811
Total commercial and industrial	14,815,380		44,080		1,782		45,862		65,797		1,842,331		16,769,370
Investment properties	7,264,794		1,344		—		1,344		1,581		1,736,608		9,004,327
1-4 family properties	733,984		2,073		304		2,377		2,253		41,401		780,015
Land and development	629,363		808		—		808		1,110		78,161		709,442
Total commercial real estate	8,628,141		4,225		304		4,529		4,944		1,856,170		10,493,784
Consumer mortgages	3,681,553		4,223		730		4,953		11,369		1,848,493		5,546,368
Home equity lines	1,691,759		7,038		171		7,209		12,034		2,155		1,713,157
Credit cards	263,065		3,076		2,700		5,776		—		—		268,841
Other consumer loans	2,363,101		18,688		616		19,304		5,704		8,185		2,396,294
Total consumer	7,999,478		33,025		4,217		37,242		29,107		1,858,833		9,924,660
Total loans	$	31,442,999	$	81,330	$	6,303	$	87,633	$	99,848	$	5,557,334	$	37,187,814	(4)

⁽¹⁾For purposes of this table, non-performing and past due loans exclude COVID-19 loan modifications.

⁽²⁾Total before net deferred fees and costs of $98.2 million.

⁽³⁾Represents loans (at fair value) acquired from FCB accounted for under ASC 310-30, net of discount of $90.3 million and payments since Acquisition Date and also include $1.8 million in non-accrual loans, $9.6 million in accruing 90 days or greater past due loans, and $26.5 million in 30-89 days past due loans.

⁽⁴⁾Total before net deferred fees and costs of $25.4 million.

Interest income on non-accrual loans outstanding that would have been recorded if the loans had been current and performing in accordance with their original terms was $2.8 million and $3.4 million for the three months ended June 30, 2020 and 2019, respectively, and $4.9 million and $5.5 million for the six months ended June 30, 2020 and 2019, respectively. Of the interest income recognized during the three months ended June 30, 2020 and 2019, cash-basis interest income was

$484 thousand and $996 thousand, respectively. Cash-basis interest income was $1.4 million and $1.6 million for the six months ended June 30, 2020 and 2019, respectively.

Loans with carrying values of $15.42 billion and $12.11 billion, respectively, were pledged as collateral for borrowings and capacity at June 30, 2020 and December 31, 2019, respectively, to the FHLB and Federal Reserve Bank.

The credit quality of the loan portfolio is reviewed and updated no less frequently than quarterly using the standard asset classification system utilized by the federal banking agencies. These classifications are divided into three groups – Not Criticized (Pass), Special Mention, and Classified or Adverse rating (Substandard, Doubtful, and Loss) and are defined as follows:

Pass - loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell in a timely manner, of any underlying collateral.

Special Mention - loans which have potential weaknesses that deserve management's close attention. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant an adverse classification.

Substandard - loans which are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans with this classification are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful - loans which have all the weaknesses inherent in loans classified as Substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently known facts, conditions, and values.

Loss - loans which are considered by management to be uncollectible and of such little value that their continuance on the institution's books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. Synovus fully reserves for any loans rated as Loss.

In the following tables, consumer loans are generally assigned a risk grade similar to the classifications described above; however, upon reaching 90 days and 120 days past due, they are generally downgraded to Substandard and Loss, respectively, in accordance with the FFIEC Retail Credit Classification Policy. Additionally, in accordance with Interagency Supervisory Guidance, the risk grade classifications of consumer loans (consumer mortgages and HELOCs) secured by junior liens on 1-4 family residential properties also consider available information on the payment status of any associated senior liens with other financial institutions.

The risk characteristics and collateral information of each portfolio segment are as follows:

Commercial and Industrial Loans

The C&I loan portfolio is comprised of general middle market and commercial banking clients across a diverse set of industries. In accordance with Synovus' lending policy, each loan undergoes a detailed underwriting process which incorporates uniform underwriting standards and oversight in proportion to the size and complexity of the lending relationship. These loans are secured by collateral such as business equipment, inventory, and real estate. Whether for real estate or non-real estate purpose, credit decisions on loans in the C&I portfolio are based on cash flow from the operations of the business as the primary source of repayment of the debt, with underlying real estate or other collateral being the secondary source of repayment. PPP loans, which are categorized as C&I loans, were $2.71 billion net of unearned fees at June 30, 2020 and are guaranteed by the SBA.

Commercial Real Estate Loans

CRE loans primarily consist of income-producing investment properties loans. Additionally, CRE loans include 1-4 family properties loans as well as land and development loans. Investment properties loans consist of construction and mortgage loans for income-producing properties and are primarily made to finance multi-family properties, hotels, office buildings, shopping centers, warehouses and other commercial development properties. 1-4 family properties loans include construction loans to homebuilders and commercial mortgage loans related to 1-4 family rental properties and are almost always secured by the underlying property being financed by such loans. These properties are primarily located in the markets served by Synovus. Land and development loans include commercial and residential development as well as land acquisition loans and are secured by land held for future development, typically in excess of one year. Properties securing these loans are substantially within markets served by Synovus, and loan terms generally include personal guarantees from the principals. Loans in this portfolio are underwritten based on the LTV of the collateral and the capacity of the guarantor(s).

Consumer Loans

The consumer loan portfolio consists of a wide variety of loan products offered through Synovus' banking network including first and second residential mortgages, HELOCs, and credit card loans, as well as home improvement loans, student, and personal loans from third-party lending partnerships. The majority of Synovus' consumer loans are consumer mortgages

and HELOCs secured by first and second liens on residential real estate primarily located in the markets served by Synovus. The primary source of repayment for all consumer loans is generally the personal income of the borrower(s).

The following table summarizes each loan portfolio class by risk grade and origination as of June 30, 2020.


Loan Portfolio by Risk Grade and Origination
	June 30, 2020
	Term Loans Amortized Cost Basis by Origination Year																		Revolving Loans
(in thousands)	2020		2019		2018		2017		2016		Prior		Amortized Cost Basis		Converted to Term Loans		Total
Commercial, financial and agricultural
Pass	$	3,740,787	$	1,597,917	$	1,036,299	$	708,156	$	612,390	$	892,294	$	4,122,798	$	77,917	$	12,788,558
Special Mention	7,352		7,740		19,208		31,223		3,910		14,110		61,580		2,820		147,943
Substandard⁽¹⁾	4,674		11,579		15,952		20,561		11,095		37,335		65,753		1,016		167,965
Doubtful⁽²⁾	—		3,721		19,778		186		915		91		6,810		729		32,230
Total commercial, financial and agricultural	3,752,813		1,620,957		1,091,237		760,126		628,310		943,830		4,256,941		82,482		13,136,696
Owner-occupied
Pass	688,033		1,216,238		1,250,906		1,082,002		669,572		1,419,946		308,851		—		6,635,548
Special Mention	2,700		6,233		13,990		6,776		3,219		7,362		—		—		40,280
Substandard⁽¹⁾	1,101		11,466		35,225		30,457		6,749		31,093		23		—		116,114
Doubtful⁽²⁾	—		—		9,638		—		—		—		—		—		9,638
Total owner-occupied	691,834		1,233,937		1,309,759		1,119,235		679,540		1,458,401		308,874		—		6,801,580
Total commercial and industrial	4,444,647		2,854,894		2,400,996		1,879,361		1,307,850		2,402,231		4,565,815		82,482		19,938,276
Investment properties
Pass	584,995		2,148,882		2,367,168		1,568,115		794,784		1,645,276		225,887		—		9,335,107
Special Mention	828		717		—		22,446		21,406		4,499		—		—		49,896
Substandard⁽¹⁾	154		1,982		4,691		2,328		976		52,026		40		—		62,197
Total investment properties	585,977		2,151,581		2,371,859		1,592,889		817,166		1,701,801		225,927		—		9,447,200
1-4 family properties
Pass	94,373		150,134		90,084		102,285		51,637		124,109		67,053		—		679,675
Special Mention	430		1,996		160		—		807		410		—		—		3,803
Substandard⁽¹⁾	1,518		922		4,399		1,092		382		2,640		2,377		—		13,330
Total 1-4 family properties	96,321		153,052		94,643		103,377		52,826		127,159		69,430		—		696,808
Land and development
Pass	41,600		222,580		103,868		115,763		21,025		103,966		48,039		—		656,841
Special Mention	—		1,533		2,390		636		—		7,186		5,642		—		17,387
Substandard⁽¹⁾	1,101		1,274		2,864		630		1,190		2,240		—		—		9,299
Total land and development	42,701		225,387		109,122		117,029		22,215		113,392		53,681		—		683,527
Total commercial real estate	724,999		2,530,020		2,575,624		1,813,295		892,207		1,942,352		349,038		—		10,827,535


Loan Portfolio by Risk Grade and Origination (continued)
	June 30, 2020
	Term Loans Amortized Cost Basis by Origination Year																		Revolving Loans
(in thousands)	2020		2019		2018		2017		2016		Prior		Amortized Cost Basis		Converted to Term Loans		Total
Consumer mortgages
Pass	$	1,087,169	$	1,042,318	$	560,207	$	841,101	$	826,726	$	1,433,288	$	991	$	—	$	5,791,800
Substandard⁽¹⁾	29		1,116		895		4,741		2,500		10,221		—		—		19,502
Loss⁽³⁾	—		—		—		—		—		74		—		—		74
Total consumer mortgages	1,087,198		1,043,434		561,102		845,842		829,226		1,443,583		991		—		5,811,376
Home equity lines
Pass	—		—		—		—		—		—		1,600,837		89,969		1,690,806
Substandard⁽¹⁾	—		—		—		—		—		—		11,234		6,047		17,281
Doubtful⁽²⁾	—		—		—		—		—		—		17		20		37
Loss⁽³⁾	—		—		—		—		—		—		1,898		242		2,140
Total home equity lines	—		—		—		—		—		—		1,613,986		96,278		1,710,264
Credit cards
Pass	—		—		—		—		—		—		247,884		—		247,884
Substandard⁽¹⁾	—		—		—		—		—		—		898		—		898
Loss⁽⁴⁾	—		—		—		—		—		—		1,666		—		1,666
Total credit cards	—		—		—		—		—		—		250,448		—		250,448
Other consumer loans
Pass	259,282		326,999		221,013		196,955		126,927		88,033		249,397		—		1,468,606
Substandard⁽¹⁾	—		1,246		536		2,517		715		677		286		—		5,977
Total other consumer loans	259,282		328,245		221,549		199,472		127,642		88,710		249,683		—		1,474,583
Total consumer	1,346,480		1,371,679		782,651		1,045,314		956,868		1,532,293		2,115,108		96,278		9,246,671
Total loans⁽⁵⁾	$	6,516,126	$	6,756,593	$	5,759,271	$	4,737,970	$	3,156,925	$	5,876,876	$	7,029,961	$	178,760	$	40,012,482

⁽¹⁾ The majority of loans within Substandard risk grade are accruing loans at June 30, 2020.

⁽²⁾ Loans within Doubtful risk grade are on non-accrual status and generally have an ALL equal to 50% of the loan amount.

⁽³⁾Loans within Loss risk grade are on non-accrual status and have an ALL equal to the full loan amount.

⁽⁴⁾ Represent amounts that were 120 days past due. These credits are downgraded to the Loss category with an ALL equal to the full loan amount and are generally charged off upon reaching 181 days past due in accordance with the FFIEC Retail Credit Classification Policy.

⁽⁵⁾ Total before net deferred fees and costs of $98.2 million.


Loan Portfolio by Risk Grade
	December 31, 2019
(in thousands)	Pass		Special Mention		Substandard⁽¹⁾		Doubtful⁽²⁾		Loss⁽³⁾			Total
Commercial, financial and agricultural	$	9,927,059	$	128,506	$	182,831	$	1,163	$	—		$	10,239,559
Owner-occupied	6,386,055		58,330		85,426		—		—			6,529,811
Total commercial and industrial	16,313,114		186,836		268,257		1,163		—			16,769,370
Investment properties	8,930,360		16,490		57,477		—		—			9,004,327
1-4 family properties	766,529		3,249		10,237		—		—			780,015
Land and development	681,003		18,643		9,796		—		—			709,442
Total commercial real estate	10,377,892		38,382		77,510		—		—			10,493,784
Consumer mortgages	5,527,746		—		18,376		97		149			5,546,368
Home equity lines	1,697,086		—		14,806		21		1,244			1,713,157
Credit cards	266,146		—		818		—		1,877		⁽⁴⁾	268,841
Other consumer loans	2,390,199		—		6,095		—		—			2,396,294
Total consumer	9,881,177		—		40,095		118		3,270			9,924,660
Total loans⁽⁵⁾	$	36,572,183	$	225,218	$	385,862	$	1,281	$	3,270		$	37,187,814

⁽¹⁾ The majority of loans within Substandard risk grade are accruing loans at December 31, 2019.

⁽²⁾ Loans within Doubtful risk grade are on non-accrual status and generally have an ALL equal to 50% of the loan amount.

⁽³⁾Loans within Loss risk grade are on non-accrual status and have an ALL equal to the full loan amount.

⁽⁵⁾Total before net deferred fees and costs of $25.4 million.

Collateral-Dependent Loans

We classify a loan as collateral-dependent when our borrower is experiencing financial difficulty, and we expect repayment to be provided substantially through the operation or sale of collateral. Our commercial loans have collateral that is comprised of real estate and business assets. Our consumer loans have collateral that is substantially comprised of residential real estate.

There were no significant changes in the extent to which collateral secures our collateral-dependent loans during the three and six months ended June 30, 2020.

The following tables detail the changes in the ALL by loan segment for the three and six months ended June 30, 2020 and 2019. Additionally, during the three months ended June 30, 2020, Synovus reversed $13.3 million in previously established reserves for credit losses associated with the transfer of $801.0 million in certain third-party lending partnership consumer loans to held for sale loans.


Allowance for Loan Losses Roll Forward
	As Of and For the Three Months Ended June 30, 2020
(in thousands)	Commercial & Industrial		Commercial Real Estate		Consumer		Total
Allowance for loan losses:
Beginning balance	$	216,950	$	107,117	$	169,385	$	493,452
Charge-offs	(23,245)		(689)		(6,844)		(30,778)
Recoveries	3,261		536		2,935		6,732
Provision for loan losses	32,949		64,562		21,731		119,242
Ending balance	$	229,915	$	171,526	$	187,207	$	588,648

	As Of and For the Three Months Ended June 30, 2019
(in thousands)	Commercial & Industrial		Commercial Real Estate		Consumer		Total
Allowance for loan losses:
Beginning balance	$	135,639	$	69,009	$	52,388	$	257,036
Charge-offs	(11,095)		(861)		(4,909)		(16,865)
Recoveries	1,821		1,954		1,311		5,086
Provision for (reversal of) loan losses	11,639		(6,639)		7,119		12,119
Ending balance	$	138,004	$	63,463	$	55,909	$	257,376

	As Of and For the Six Months Ended June 30, 2020
(in thousands)	Commercial & Industrial		Commercial Real Estate		Consumer		Total
Allowance for loan losses:
Beginning balance, prior to adoption of ASU 2016-13	$	145,782	$	67,430	$	68,190	$	281,402
Impact from adoption of ASU 2016-13	(2,310)		(651)		85,955		82,994
Charge-offs	(38,130)		(1,706)		(14,816)		(54,652)
Recoveries	5,002		935		4,608		10,545
Provision for loan losses	119,571		105,518		43,270		268,359
Ending balance	$	229,915	$	171,526	$	187,207	$	588,648

	As Of and For the Six Months Ended June 30, 2019
(in thousands)	Commercial & Industrial		Commercial Real Estate		Consumer		Total
Allowance for loan losses:
Beginning balance	$	133,123	$	68,796	$	48,636	$	250,555
Charge-offs	(24,133)		(2,093)		(11,337)		(37,563)
Recoveries	3,810		2,298		2,588		8,696
Provision for (reversal of) loan losses	25,204		(5,538)		16,022		35,688
Ending balance	$	138,004	$	63,463	$	55,909	$	257,376

The ALL of $588.6 million and the reserve for unfunded commitments of $61.0 million, which is recorded in other liabilities, comprise the total ACL of $649.7 million at June 30, 2020. The ACL increased during the second quarter of 2020 by $117.8 million to $649.7 million as of June 30, 2020. Since the adoption of CECL on January 1, 2020, the ACL has increased $256.5 million. The increase for the three and six months ended June 30, 2020 continues to be primarily driven by the deteriorated economic environment caused by the COVID-19 pandemic. Provision for credit losses (which includes the provision for loan losses and unfunded commitments) of $141.9 million and $300.6 million for the three and six months ended

June 30, 2020, respectively, resulted in the building of the ACL required under CECL primarily as a result of deterioration in the economic environment due to the impact of COVID-19.

Our modeling process incorporates quantitative and qualitative considerations that are used to inform CECL estimates. The internally developed economic forecast used to determine the ACL as of June 30, 2020 was approved late in the second quarter of 2020 pursuant to Synovus' economic forecasting governance processes. The economic assumptions for the second quarter of 2020 included the estimated impact of currently enacted government stimulus plans and an unemployment rate ending the 2020 year around 10%. Our model forecast includes moderate economic expansion following significant declines in real GDP in the second quarter of 2020. This represented further deterioration of the economic environment since March 31, 2020 and resulted in an increase of the ACL to loans coverage ratio during the quarter of 24 bps to 1.63% at June 30, 2020, or 1.74% excluding PPP loans.

Significant economic uncertainty remains as a result of the continuing COVID-19 crisis, and the trajectory of the economic recovery including any additional government stimulus plans will impact subsequent period CECL reserves.

Information about Synovus' TDRs is presented in the following tables. Synovus began entering into loan modifications with borrowers in response to the COVID-19 pandemic, which have not been classified as TDRs, and therefore are not included in the discussion below. See "Part I-Item 1. Financial Statements and Supplementary Data - Note 1 - Basis of Presentation" in this Report for more information on Synovus' loan modifications due to COVID-19. The following tables represent, by concession type, the post-modification balance for loans modified or renewed during the three and six months ended June 30, 2020 and 2019 that were reported as accruing or non-accruing TDRs.


TDRs by Concession Type
	Three Months Ended June 30, 2020
(in thousands, except contract data)	Number of Contracts	Below Market Interest Rate		Other Concessions⁽¹⁾		Total
Commercial, financial and agricultural	40	$	1,503	$	2,000	$	3,503
Owner-occupied	7	453		1,434		1,887
Total commercial and industrial	47	1,956		3,434		5,390
Investment properties	2	5,599		—		5,599
1-4 family properties	4	69		549		618
Land and development	1	91		—		91
Total commercial real estate	7	5,759		549		6,308
Consumer mortgages	10	556		1,482		2,038
Home equity lines	14	181		918		1,099
Other consumer loans	18	19		798		817
Total consumer	42	756		3,198		3,954
Total TDRs	96	$	8,471	$	7,181	$	15,652	⁽²⁾

	Three Months Ended June 30, 2019
(in thousands, except contract data)	Number of Contracts	Below Market Interest Rate		Other Concessions⁽¹⁾		Total
Commercial, financial and agricultural	21	$	1,343	$	1,589	$	2,932
Owner-occupied	4	1,082		—		1,082
Total commercial and industrial	25	2,425		1,589		4,014
Investment properties	1	180		—		180
1-4 family properties	4	514		—		514
Land and development	2	169		—		169
Total commercial real estate	7	863		—		863
Consumer mortgages	1	109		—		109
Home equity lines	24	2,321		—		2,321
Other consumer loans	34	586		1,332		1,918
Total consumer	59	3,016		1,332		4,348
Total TDRs	91	$	6,304	$	2,921	$	9,225	⁽³⁾

⁽¹⁾Other concessions generally include term extensions, interest only payments for a period of time, or principal forgiveness, but there was no principal forgiveness for the three months ending June 30, 2020 and 2019.

⁽²⁾No net charge-offs were recorded during the three months ended June 30, 2020.

⁽³⁾No net charge-offs were recorded during the three months ended June 30, 2019.


	Six Months Ended June 30, 2020
(in thousands, except contract data)	Number of Contracts	Below Market Interest Rate		Other Concessions⁽¹⁾		Total
Commercial, financial and agricultural	76	$	5,226	$	4,011	$	9,237
Owner-occupied	12	1,821		1,530		3,351
Total commercial and industrial	88	7,047		5,541		12,588
Investment properties	4	28,669		—		28,669
1-4 family properties	10	793		991		1,784
Land and development	2	541		—		541
Total commercial real estate	16	30,003		991		30,994
Consumer mortgages	16	1,072		2,566		3,638
Home equity lines	33	455		1,882		2,337
Other consumer loans	47	97		2,694		2,791
Total consumer	96	1,624		7,142		8,766
Total TDRs	200	$	38,674	$	13,674	$	52,348	⁽²⁾

	Six Months Ended June 30, 2019
(in thousands, except contract data)	Number of Contracts	Below Market Interest Rate		Other Concessions⁽¹⁾		Total
Commercial, financial and agricultural	34	$	3,126	$	2,488	$	5,614
Owner-occupied	6	2,031		—		2,031
Total commercial and industrial	40	5,157		2,488		7,645
Investment properties	2	663		—		663
1-4 family properties	10	1,307		—		1,307
Land and development	2	169		—		169
Total commercial real estate	14	2,139		—		2,139
Consumer mortgages	5	237		1,214		1,451
Home equity lines	25	2,321		105		2,426
Other consumer loans	52	694		2,377		3,071
Total consumer	82	3,252		3,696		6,948
Total TDRs	136	$	10,548	$	6,184	$	16,732	⁽³⁾

⁽¹⁾Other concessions generally include term extensions, interest only payments for a period of time, or principal forgiveness, but there was no principal forgiveness for the six months ending June 30, 2020 and 2019.

⁽²⁾No net charge-offs were recorded during the six months ended June 30, 2020.

⁽³⁾No net charge-offs were recorded during the six months ended June 30, 2019.

For the three and six months ended June 30, 2020 there was one default with a recorded investment of $27 thousand and four defaults with a recorded investment of $645 thousand, respectively, on accruing TDRs restructured during the previous twelve months (defaults are defined as the earlier of the TDR being placed on non-accrual status or reaching 90 days past due with respect to principal and/or interest payments) compared to one default with a recorded investment of $5 thousand for both the three and six months ended June 30, 2019. As of June 30, 2020 and December 31, 2019, there were no commitments to lend a material amount of additional funds to any customer whose loan was classified as a TDR.