Loans and Allowance for Loan Losses

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Loans and Allowance for Loan Losses

Note 3 - Loans and Allowance for Loan Losses

Aging and Non-Accrual Analysis

The following tables provide a summary of current, accruing past due, and non-accrual loans by portfolio class as of March 31, 2023 and December 31, 2022.

	March 31, 2023
(in thousands)	Current		Accruing 30-89 Days Past Due		Accruing 90 Days or Greater Past Due		Total Accruing Past Due		Non-accrual with an ALL		Non-accrual without an ALL		Total
Commercial, financial and agricultural	$	14,095,704	$	9,723	$	1,775	$	11,498	$	78,792	$	15,404	$	14,201,398
Owner-occupied	8,369,684		3,455		48		3,503		25,591		—		8,398,778
Total commercial and industrial	22,465,388		13,178		1,823		15,001		104,383		15,404		22,600,176
Investment properties	11,971,387		1,830		—		1,830		1,935		1,678		11,976,830
1-4 family properties	592,680		455		—		455		2,621		894		596,650
Land and development	422,055		67		—		67		1,153		—		423,275
Total commercial real estate	12,986,122		2,352		—		2,352		5,709		2,572		12,996,755
Consumer mortgages	5,194,675		12,429		—		12,429		39,536		—		5,246,640
Home equity	1,742,419		6,863		1		6,864		7,967		—		1,757,250
Credit cards	181,091		1,799		1,705		3,504		—		—		184,595
Other consumer loans	1,237,731		14,903		—		14,903		6,857		32		1,259,523
Total consumer	8,355,916		35,994		1,706		37,700		54,360		32		8,448,008
Loans, net of deferred fees and costs	$	43,807,426	$	51,524	$	3,529	$	55,053	$	164,452	$	18,008	$	44,044,939

	December 31, 2022
(in thousands)	Current		Accruing 30-89 Days Past Due		Accruing 90 Days or Greater Past Due		Total Accruing Past Due		Non-accrual with an ALL		Non-accrual without an ALL		Total
Commercial, financial and agricultural	$	13,798,639	$	15,033	$	1,437	$	16,470	$	48,008	$	11,299	$	13,874,416
Owner-occupied	8,181,649		487		—		487		9,499		605		8,192,240
Total commercial and industrial	21,980,288		15,520		1,437		16,957		57,507		11,904		22,066,656
Investment properties	11,639,614		960		—		960		1,785		1,688		11,644,047
1-4 family properties	613,049		762		—		762		2,172		950		616,933
Land and development	388,098		77		—		77		1,158		—		389,333
Total commercial real estate	12,640,761		1,799		—		1,799		5,115		2,638		12,650,313
Consumer mortgages	5,163,417		13,969		210		14,179		36,847		—		5,214,443
Home equity	1,742,412		7,795		1		7,796		6,830		—		1,757,038
Credit cards	200,047		1,843		1,722		3,565		—		—		203,612
Other consumer loans	1,795,799		21,269		3		21,272		7,220		—		1,824,291
Total consumer	8,901,675		44,876		1,936		46,812		50,897		—		8,999,384
Loans, net of deferred fees and costs	$	43,522,724	$	62,195	$	3,373	$	65,568	$	113,519	$	14,542	$	43,716,353

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 $3.3 million and $3.4 million for the three months ended March 31, 2023 and 2022, respectively. Of the interest income recognized during the three months ended March 31, 2023 and 2022, cash-basis interest income was $1.7 million and $554 thousand, respectively.

Pledged Loans

Loans with carrying values of $18.61 billion and $16.09 billion, respectively, were pledged as collateral for borrowings and capacity at March 31, 2023 and December 31, 2022, respectively, to the FHLB and Federal Reserve Bank.

Portfolio Segment Risk Factors

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. 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.

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 (medical and non-medical), 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 our preference is to obtain some level of recourse from project sponsors. 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, home equity, and consumer credit card loans, as well as home improvement loans, student, personal, and auto loans from third-party lending ("other consumer loans"). Together, consumer mortgages and home equity comprise the majority of Synovus' consumer loans and are 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).

Credit Quality Indicators

The credit quality of the loan portfolio is reviewed and updated no less frequently than annually 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 categorized 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 home equity) 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 following table summarizes each loan portfolio class by risk grade and origination year as of March 31, 2023 as required under CECL. In addition, gross charge-offs by loan portfolio class and origination year as of March 31, 2023 are included below as a result of the adoption of ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosure.

	March 31, 2023
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans
(in thousands)	2023		2022		2021		2020		2019		Prior		Amortized Cost Basis		Converted to Term Loans		Total
Commercial, financial and agricultural
Pass	$	209,699	$	1,263,951	$	1,752,589	$	973,723	$	780,905	$	1,480,991	$	7,182,461	$	53,212	$	13,697,531
Special Mention	1,135		1,174		2,453		1,705		4,580		17,890		137,617		—		166,554
Substandard(1)	16,893		18,271		22,900		40,625		39,241		26,678		170,153		1,976		336,737
Loss(2)(3)	—		41		34		—		—		355		146		—		576
Total commercial, financial and agricultural	227,727		1,283,437		1,777,976		1,016,053		824,726		1,525,914		7,490,377		55,188		14,201,398
Current YTD Period:
Gross charge-offs	—		595		1,525		600		137		308		4,152		203		7,520
Owner-occupied
Pass	290,480		1,574,203		1,674,386		1,117,073		876,567		1,673,967		870,423		—		8,077,099
Special Mention	637		1,740		1,002		24,249		7,196		69,869		17,766		—		122,459
Substandard(1)	148		23,273		15,989		62,754		15,325		67,223		14,082		—		198,794
Loss(3)	—		—		245		—		—		181		—		—		426
Total owner-occupied	291,265		1,599,216		1,691,622		1,204,076		899,088		1,811,240		902,271		—		8,398,778
Current YTD Period:
Gross charge-offs	—		—		353		—		—		—		—		—		353
Total commercial and industrial	518,992		2,882,653		3,469,598		2,220,129		1,723,814		3,337,154		8,392,648		55,188		22,600,176
Current YTD Period:
Gross charge-offs	$	—	$	595	$	1,878	$	600	$	137	$	308	$	4,152	$	203	$	7,873
Investment properties
Pass	197,011		2,796,377		3,401,131		1,487,377		1,207,607		2,205,565		539,903		—		11,834,971
Special Mention	551		1,198		1,514		—		14,446		30,961		—		—		48,670
Substandard(1)	3,219		2,711		1,447		174		1,678		62,924		20,929		—		93,082
Loss(3)	—		—		—		—		—		107		—		—		107
Total investment properties	200,781		2,800,286		3,404,092		1,487,551		1,223,731		2,299,557		560,832		—		11,976,830
Current YTD Period:
Gross charge-offs	—		—		—		—		—		—		—		—		—
1-4 family properties
Pass	40,898		219,509		141,305		40,833		33,065		73,898		40,670		—		590,178
Special Mention	—		—		—		195		—		192		—		—		387
Substandard(1)	1,301		1,289		985		316		685		1,464		45		—		6,085
Total 1-4 family properties	42,199		220,798		142,290		41,344		33,750		75,554		40,715		—		596,650
Current YTD Period:
Gross charge-offs	—		—		—		—		—		19		—		—		19

	March 31, 2023
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans
(in thousands)	2023		2022		2021		2020		2019		Prior		Amortized Cost Basis		Converted to Term Loans		Total
Land and development
Pass	52,110		107,318		78,137		21,631		34,780		85,463		8,314		—		387,753
Special Mention	—		—		—		—		—		30,688		—		—		30,688
Substandard(1)	169		688		302		953		619		2,103		—		—		4,834
Total land and development	52,279		108,006		78,439		22,584		35,399		118,254		8,314		—		423,275
Current YTD Period:
Gross charge-offs	—		—		—		77		—		—		—		—		77
Total commercial real estate	295,259		3,129,090		3,624,821		1,551,479		1,292,880		2,493,365		609,861		—		12,996,755
Current YTD Period:
Gross charge-offs	$	—	$	—	$	—	$	77	$	—	$	19	$	—	$	—	$	96
Consumer mortgages
Pass	164,007		854,860		1,142,028		1,314,831		447,533		1,269,573		33		—		5,192,865
Substandard(1)	—		813		7,136		11,174		8,851		25,067		—		—		53,041
Loss(3)	—		—		—		—		4		730		—		—		734
Total consumer mortgages	164,007		855,673		1,149,164		1,326,005		456,388		1,295,370		33		—		5,246,640
Current YTD Period:
Gross charge-offs	—		55		9		8		71		271		—		—		414
Home equity
Pass	—		—		—		—		—		—		1,232,884		511,633		1,744,517
Substandard(1)	—		—		—		—		—		—		7,611		4,684		12,295
Loss(3)	—		—		—		—		—		—		322		116		438
Total home equity	—		—		—		—		—		—		1,240,817		516,433		1,757,250
Current YTD Period:
Gross charge-offs	—		—		—		—		—		—		106		—		106
Credit cards
Pass	—		—		—		—		—		—		182,926		—		182,926
Substandard(1)	—		—		—		—		—		—		567		—		567
Loss(2)	—		—		—		—		—		—		1,102		—		1,102
Total credit cards	—		—		—		—		—		—		184,595		—		184,595
Current YTD Period:
Gross charge-offs	—		—		—		—		—		—		1,816		—		1,816
Other consumer loans
Pass	32,096		246,407		319,745		151,022		42,022		153,316		306,552		—		1,251,160
Substandard(1)	—		1,499		3,623		1,505		697		829		138		—		8,291
Loss(2)	—		—		—		—		—		28		44		—		72
Total other consumer loans	32,096		247,906		323,368		152,527		42,719		154,173		306,734		—		1,259,523
Current YTD Period:
Gross charge-offs(4)	31		1,250		10,898		1,194		496		600		561		—		15,030
Total consumer	196,103		1,103,579		1,472,532		1,478,532		499,107		1,449,543		1,732,179		516,433		8,448,008
Current YTD Period:
Gross charge-offs	$	31	$	1,305	$	10,907	$	1,202	$	567	$	871	$	2,483	$	—	$	17,366
Loans, net of deferred fees and costs	$	1,010,354	$	7,115,322	$	8,566,951	$	5,250,140	$	3,515,801	$	7,280,062	$	10,734,688	$	571,621	$	44,044,939
Current YTD Period:
Gross charge-offs	$	31	$	1,900	$	12,785	$	1,879	$	704	$	1,198	$	6,635	$	203	$	25,335

(1)    The majority of loans within Substandard risk grade are accruing loans at March 31, 2023.

(2)    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.

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

(4)    Includes $6.6 million in gross charge-offs related to the transfer of third-party consumer loans to held for sale.

The following table summarizes each loan portfolio class by risk grade and origination year as of December 31, 2022 as required under CECL.

	December 31, 2022
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans
(in thousands)	2022		2021		2020		2019		2018		Prior		Amortized Cost Basis		Converted to Term Loans		Total
Commercial, financial and agricultural
Pass	$	1,276,814	$	1,911,353	$	1,009,230	$	782,100	$	536,001	$	1,037,488	$	6,862,070	$	43,748	$	13,458,804
Special Mention	4,131		14,289		12,691		6,637		5,716		2,777		81,889		1,710		129,840
Substandard(1)	13,751		17,780		38,943		42,773		18,405		21,418		131,422		1,003		285,495
Loss(2)	—		—		—		—		—		—		277		—		277
Total commercial, financial and agricultural	1,294,696		1,943,422		1,060,864		831,510		560,122		1,061,683		7,075,658		46,461		13,874,416
Owner-occupied
Pass	1,537,016		1,675,524		1,137,889		909,525		664,734		1,103,500		866,920		—		7,895,108
Special Mention	4,238		6,760		24,175		13,913		5,024		69,500		—		—		123,610
Substandard(1)	19,437		13,381		63,925		7,415		51,364		17,755		—		—		173,277
Loss(3)	—		245		—		—		—		—		—		—		245
Total owner-occupied	1,560,691		1,695,910		1,225,989		930,853		721,122		1,190,755		866,920		—		8,192,240
Total commercial and industrial	2,855,387		3,639,332		2,286,853		1,762,363		1,281,244		2,252,438		7,942,578		46,461		22,066,656
Investment properties
Pass	2,671,660		3,245,669		1,532,230		1,220,974		775,747		1,543,724		541,118		—		11,531,122
Special Mention	2,379		1,550		—		14,570		5,908		2,388		146		—		26,941
Substandard(1)	5,973		1,455		176		1,688		51,767		3,931		20,994		—		85,984
Total investment properties	2,680,012		3,248,674		1,532,406		1,237,232		833,422		1,550,043		562,258		—		11,644,047
1-4 family properties
Pass	248,418		154,181		44,032		33,246		27,053		55,543		47,732		—		610,205
Special Mention	1		—		752		—		—		297		—		—		1,050
Substandard(1)	1,309		1,429		75		741		836		1,243		45		—		5,678
Total 1-4 family properties	249,728		155,610		44,859		33,987		27,889		57,083		47,777		—		616,933
Land and development
Pass	119,801		84,055		21,984		39,484		18,600		64,854		5,078		—		353,856
Special Mention	—		—		744		—		29,618		1,118		—		—		31,480
Substandard(1)	699		325		220		627		472		1,654		—		—		3,997
Total land and development	120,500		84,380		22,948		40,111		48,690		67,626		5,078		—		389,333
Total commercial real estate	3,050,240		3,488,664		1,600,213		1,311,330		910,001		1,674,752		615,113		—		12,650,313

	December 31, 2022
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans
(in thousands)	2022		2021		2020		2019		2018		Prior		Amortized Cost Basis		Converted to Term Loans		Total
Consumer mortgages
Pass	$	857,489	$	1,188,652	$	1,356,065	$	458,441	$	182,834	$	1,118,686	$	143	$	—	$	5,162,310
Substandard(1)	1,153		6,452		8,519		9,442		6,167		19,662		—		—		51,395
Loss(3)	—		—		—		4		—		734		—		—		738
Total consumer mortgages	858,642		1,195,104		1,364,584		467,887		189,001		1,139,082		143		—		5,214,443
Home equity
Pass	—		—		—		—		—		—		1,241,201		504,272		1,745,473
Substandard(1)	—		—		—		—		—		—		6,534		4,512		11,046
Loss(3)	—		—		—		—		—		—		402		117		519
Total home equity	—		—		—		—		—		—		1,248,137		508,901		1,757,038
Credit cards
Pass	—		—		—		—		—		—		201,898		—		201,898
Substandard(1)	—		—		—		—		—		—		617		—		617
Loss(2)	—		—		—		—		—		—		1,097		—		1,097
Total credit cards	—		—		—		—		—		—		203,612		—		203,612
Other consumer loans
Pass	284,045		524,601		457,684		61,760		31,662		142,189		313,565		—		1,815,506
Substandard(1)	1,417		3,810		1,648		712		163		888		139		—		8,777
Loss(2)	—		—		—		—		—		8		—		—		8
Total other consumer loans	285,462		528,411		459,332		62,472		31,825		143,085		313,704		—		1,824,291
Total consumer	1,144,104		1,723,515		1,823,916		530,359		220,826		1,282,167		1,765,596		508,901		8,999,384
Loans, net of deferred fees and costs	$	7,049,731	$	8,851,511	$	5,710,982	$	3,604,052	$	2,412,071	$	5,209,357	$	10,323,287	$	555,362	$	43,716,353

(1)    The majority of loans within Substandard risk grade are accruing loans at December 31, 2022.

(2)    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.

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

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 months ended March 31, 2023.

Rollforward of Allowance for Loan Losses

The following tables detail the changes in the ALL by loan segment for the three months ended March 31, 2023 and 2022. During the three months ended March 31, 2023, Synovus charged-off $6.6 million in previously established reserves for credit losses associated with the transfer of $424.1 million in certain third-party consumer loans to held for sale as part of our overall balance sheet management strategy.

	As Of and For the Three Months Ended March 31, 2023
(in thousands)	Commercial & Industrial		Commercial Real Estate		Consumer		Total
Allowance for loan losses:
Beginning balance at December 31, 2022	$	161,550	$	143,575	$	138,299	$	443,424
Charge-offs	(7,873)		(96)		(17,366)		(25,335)
Recoveries	3,476		284		3,025		6,785
Provision for (reversal of) loan losses	1,535		16,629		13,972		32,136
Ending balance at March 31, 2023	$	158,688	$	160,392	$	137,930	$	457,010
	As Of and For the Three Months Ended March 31, 2022
(in thousands)	Commercial & Industrial		Commercial Real Estate		Consumer		Total
Allowance for loan losses:
Beginning balance at December 31, 2021	$	188,364	$	97,760	$	141,473	$	427,597
Charge-offs	(13,763)		(2,456)		(8,928)		(25,147)
Recoveries	2,363		361		3,814		6,538
Provision for (reversal of) loan losses	1,758		(969)		5,179		5,968
Ending balance at March 31, 2022	$	178,722	$	94,696	$	141,538	$	414,956

The ALL of $457.0 million and the reserve for unfunded commitments of $57.5 million, which is recorded in other liabilities, comprise the total ACL of $514.5 million at March 31, 2023. The ACL increased $13.6 million compared to the December 31, 2022 ACL of $500.9 million, which consisted of the ALL of $443.4 million and the reserve for unfunded commitments of $57.5 million. The ACL to loans coverage ratio was 1.17% at March 31, 2023, compared to 1.15% at December 31, 2022. The increase in the ACL from December 31, 2022 resulted primarily from a deterioration in economic factors, including an increase in the downside weighting of the multiple scenario model.

The ACL is estimated using a two-year reasonable and supportable forecast period. To the extent the lives of the loans in the portfolio extend beyond the period for which a reasonable and supportable forecast can be made, the Company reverts on a straight-line basis back to the historical rates over a one-year period. Synovus utilizes multiple economic forecast scenarios sourced from a reputable third-party provider that are probability-weighted internally. The current scenarios include a consensus baseline forecast, an upside scenario reflecting an accelerated recovery, a downside scenario that reflects adverse economic conditions, and an additional adverse scenario that assumes consistent slow growth that is less optimistic than the baseline. At March 31, 2023, the unemployment rate is the input that most significantly impacts our estimate. The multi-scenario forecast used in our estimate includes a peak weighted average unemployment rate of 5.3% over the forecasted period at March 31, 2023, compared to 5.1% at December 31, 2022.

Financial Difficulty Modifications (FDMs)

When borrowers are experiencing financial difficulty, Synovus may make certain loan modifications as part of loss mitigation strategies to maximize expected payment. All loan modifications, renewals, and refinances to loans where borrowers are experiencing financial difficulty are evaluated for FDM classification. To be classified as an FDM, the modifications must be in the form of providing an interest rate reduction relative to the current interest rate, principal forgiveness, or an other-than-insignificant payment delay or extension of the maturity of the loan. An FDM is tracked for 12 months following the modification(s) granted. The effect of these modifications is already included in the allowance for credit losses because our use of a DCF model captures loan level changes including modified terms as part of the estimation process.

The following table presents the amortized cost of FDM loans by loan portfolio class that were modified during the three months ended March 31, 2023.

	Three Months Ended March 31, 2023
(in thousands)	Interest Rate Reduction		Term Extension		Interest Rate Reduction and Term Extension		Total		Percentage of Total by Financing Class
Commercial, financial and agricultural	$	49	$	16,321	$	247	$	16,617	0.1	%
Owner-occupied	—		1,468		41,263		42,731		0.5
Total commercial and industrial	49		17,789		41,510		59,348		0.3
Investment properties	—		—		—		—		—
1-4 family properties	—		1,339		—		1,339		0.2
Land and development	—		—		—		—		—
Total commercial real estate	—		1,339		—		1,339		—
Consumer mortgages	113		—		—		113		—
Home equity	—		88		15		103		—
Credit cards	—		—		—		—		—
Other consumer loans	64		141		231		436		—
Total consumer	177		229		246		652		—
Total FDMs	$	226	$	19,357	$	41,756	$	61,339	0.1	%

During the three months ended March 31, 2023, there were no FDMs that subsequently defaulted. Defaults are defined as the earlier of the FDM being placed on non-accrual status or reaching 90 days past due with respect to principal and/or interest payments. As of March 31, 2023, there were no commitments to lend a material amount of additional funds to any borrower whose loan was classified as an FDM.

The following presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2023.

	Three Months Ended March 31, 2023
	Weighted Average Interest Rate Reduction		Weighted Average Term Extension (in months)
Commercial, financial and agricultural	3.3	%	8
Owner-occupied	1.7		9
1-4 family properties	—		12
Consumer mortgages	2.2		0
Home equity	1.1		334
Other consumer loans	3.5		68

Synovus monitors the performance of FDMs to understand the effectiveness of its modification efforts. The following table provides a summary of current, accruing past due, and non-accrual loans on an amortized cost basis by loan portfolio class that have been modified since January 1, 2023.

	As of March 31, 2023
(in thousands)	Current		Accruing 30-89 Days Past Due		Accruing 90 Days or Greater Past Due		Non-accrual (1)		Total
Commercial, financial and agricultural	$	16,028	$	—	$	—	$	589	$	16,617
Owner-occupied	42,731		—		—		—		42,731
Total commercial and industrial	58,759		—		—		589		59,348
Investment properties	—		—		—		—		—
1-4 family properties	1,339		—		—		—		1,339
Land and development	—		—		—		—		—
Total commercial real estate	1,339		—		—		—		1,339
Consumer mortgages	—		—		—		113		113
Home equity	103		—		—		—		103
Credit cards	—		—		—		—		—
Other consumer loans	22		—		—		414		436
Total consumer	125		—		—		527		652
Total FDMs	$	60,223	$	—	$	—	$	1,116	$	61,339

(1)    Loans were on non-accrual when modified and subsequently classified as FDMs.

TDR Disclosures Prior to Adoption of ASU 2022-02

Prior to the adoption of ASU 2022-02, Synovus accounted for a modification to the contractual terms of a loan that resulted in granting concessions to a borrower experiencing financial difficulties as a TDR. The following tables present, by concession type, the post-modification balance for loans modified or renewed during the three months ended March 31, 2022 that were reported as accruing or non-accruing TDRs.

TDRs by Concession Type
	Three Months Ended March 31, 2022
(in thousands, except contract data)	Number of Contracts	Below Market Interest Rate		Other Concessions(1)		Total
Commercial, financial and agricultural	33	$	17,900	$	541	$	18,441
Owner-occupied	13	6,104		3,857		9,961
Total commercial and industrial	46	24,004		4,398		28,402
Investment properties	3	589		6,610		7,199
1-4 family properties	7	1,213		—		1,213
Land and development	3	2,731		—		2,731
Total commercial real estate	13	4,533		6,610		11,143
Consumer mortgages	7	1,017		104		1,121
Home equity	11	929		—		929
Other consumer loans	2	—		48		48
Total consumer	20	1,946		152		2,098
Total TDRs	79	$	30,483	$	11,160	$	41,643	(2)

(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 ended March 31, 2022.

(2)    No net charge-offs were recorded during the three months ended March 31, 2022.

For the three months ended March 31, 2022, there were no defaults 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). As of December 31, 2022, there were no commitments to lend a material amount of additional funds to any borrower whose loan was classified as a TDR.