Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Current, Accruing Past Due, and Non-accrual Loans

The following tables provide a summary of current, accruing past due, and non-accrual loans by portfolio class as of June 30, 2023 and December 31, 2022.


	June 30, 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	$	14,001,859	$	19,134	$	1,482	$	20,616	$	119,134	$	25,281	$	14,166,890
Owner-occupied	8,314,520		27,625		—		27,625		6,197		16,000		8,364,342
Total commercial and industrial	22,316,379		46,759		1,482		48,241		125,331		41,281		22,531,232
Investment properties	12,236,317		2,596		—		2,596		29,692		1,661		12,270,266
1-4 family properties	610,704		865		—		865		3,326		831		615,726
Land and development	406,568		200		—		200		1,138		—		407,906
Total commercial real estate	13,253,589		3,661		—		3,661		34,156		2,492		13,293,898
Consumer mortgages	5,332,966		4,441		—		4,441		41,877		—		5,379,284
Home equity	1,757,068		6,983		—		6,983		9,936		—		1,773,987
Credit cards	184,145		1,481		2,051		3,532		—		—		187,677
Other consumer loans	1,162,938		17,978		110		18,088		6,402		31		1,187,459
Total consumer	8,437,117		30,883		2,161		33,044		58,215		31		8,528,407
Loans, net of deferred fees and costs	$	44,007,085	$	81,303	$	3,643	$	84,946	$	217,702	$	43,804	$	44,353,537


	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

Schedule of Loan Portfolio Credit Exposure

The following table summarizes each loan portfolio class by risk grade and origination year as of June 30, 2023 as required under CECL. In addition, gross charge-offs by loan portfolio class and origination year as of June 30, 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.


	June 30, 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	$	583,998	$	1,186,752	$	1,615,563	$	923,404	$	676,245	$	1,412,658	$	7,095,080	$	55,621	$	13,549,321
Special Mention	1,707		3,273		3,534		1,739		79,760		8,590		128,409		—		227,012
Substandard(1)	21,349		15,116		20,897		39,306		37,140		24,995		198,893		9,609		367,305
Doubtful(2)	—		—		—		—		—		—		22,103		—		22,103
Loss(3)(4)	—		—		—		—		—		363		786		—		1,149
Total commercial, financial and agricultural	607,054		1,205,141		1,639,994		964,449		793,145		1,446,606		7,445,271		65,230		14,166,890
Current YTD Period:
Gross charge-offs	—		1,633		1,804		961		909		604		21,102		203		27,216
Owner-occupied
Pass	564,996		1,575,827		1,586,180		1,082,709		793,757		1,533,957		871,721		—		8,009,147
Special Mention	930		3,578		18,888		24,065		11,094		58,422		17,782		—		134,759
Substandard(1)	606		23,263		13,090		46,545		12,319		95,938		12,249		—		204,010
Loss(4)	—		—		245		16,000		—		181		—		—		16,426
Total owner-occupied	566,532		1,602,668		1,618,403		1,169,319		817,170		1,688,498		901,752		—		8,364,342
Current YTD Period:
Gross charge-offs	—		—		353		2,922		223		—		—		—		3,498
Total commercial and industrial	1,173,586		2,807,809		3,258,397		2,133,768		1,610,315		3,135,104		8,347,023		65,230		22,531,232
Current YTD Period:
Gross charge-offs	$	—	$	1,633	$	2,157	$	3,883	$	1,132	$	604	$	21,102	$	203	$	30,714
Investment properties
Pass	319,091		3,004,555		3,469,385		1,445,709		1,198,543		2,091,311		497,661		—		12,026,255
Special Mention	—		2,218		76,076		—		10,476		61,316		—		—		150,086
Substandard(1)	5,189		856		1,305		173		1,661		37,465		19,576		—		66,225
Doubtful	—		—		—		—		—		27,635		—		—		27,635
Loss(4)	—		—		—		—		—		65		—		—		65
Total investment properties	324,280		3,007,629		3,546,766		1,445,882		1,210,680		2,217,792		517,237		—		12,270,266
Current YTD Period:
Gross charge-offs	—		—		—		—		—		—		—		—		—
1-4 family properties
Pass	114,841		178,720		125,043		37,420		32,360		67,586		51,887		—		607,857
Special Mention	—		408		—		193		—		311		—		—		912
Substandard(1)	1,643		1,605		1,363		423		714		1,164		45		—		6,957
Total 1-4 family properties	116,484		180,733		126,406		38,036		33,074		69,061		51,932		—		615,726
Current YTD Period:
Gross charge-offs	—		—		—		—		—		24		—		—		24


	June 30, 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	72,661		104,219		55,794		18,335		34,027		82,124		6,703		—		373,863
Special Mention	—		507		—		—		—		29,629		—		—		30,136
Substandard(1)	583		—		36		720		610		1,958		—		—		3,907
Total land and development	73,244		104,726		55,830		19,055		34,637		113,711		6,703		—		407,906
Current YTD Period:
Gross charge-offs	—		—		—		77		—		—		—		—		77
Total commercial real estate	514,008		3,293,088		3,729,002		1,502,973		1,278,391		2,400,564		575,872		—		13,293,898
Current YTD Period:
Gross charge-offs	$	—	$	—	$	—	$	77	$	—	$	24	$	—	$	—	$	101
Consumer mortgages
Pass	431,398		854,063		1,113,312		1,275,929		433,164		1,218,986		34		—		5,326,886
Substandard(1)	—		1,113		5,090		14,348		7,824		23,326		—		—		51,701
Loss(4)	—		—		—		—		4		693		—		—		697
Total consumer mortgages	431,398		855,176		1,118,402		1,290,277		440,992		1,243,005		34		—		5,379,284
Current YTD Period:
Gross charge-offs	22		58		251		320		297		840		—		—		1,788
Home equity
Pass	—		—		—		—		—		—		1,260,275		501,262		1,761,537
Substandard(1)	—		—		—		—		—		—		7,860		4,157		12,017
Loss(4)	—		—		—		—		—		—		317		116		433
Total home equity	—		—		—		—		—		—		1,268,452		505,535		1,773,987
Current YTD Period:
Gross charge-offs	—		—		—		—		—		—		555		49		604
Credit cards
Pass	—		—		—		—		—		—		185,639		—		185,639
Substandard(1)	—		—		—		—		—		—		765		—		765
Loss(3)	—		—		—		—		—		—		1,273		—		1,273
Total credit cards	—		—		—		—		—		—		187,677		—		187,677
Current YTD Period:
Gross charge-offs	—		—		—		—		—		—		3,513		—		3,513
Other consumer loans
Pass	71,649		220,975		275,382		137,128		39,518		136,511		299,159		—		1,180,322
Substandard(1)	—		678		3,303		1,731		546		717		103		—		7,078
Loss(3)	—		—		—		—		—		6		53		—		59
Total other consumer loans	71,649		221,653		278,685		138,859		40,064		137,234		299,315		—		1,187,459
Current YTD Period:
Gross charge-offs(5)	52		2,804		16,591		1,865		1,235		1,052		1,272		—		24,871
Total consumer	503,047		1,076,829		1,397,087		1,429,136		481,056		1,380,239		1,755,478		505,535		8,528,407
Current YTD Period:
Gross charge-offs	$	74	$	2,862	$	16,841	$	2,185	$	1,533	$	1,892	$	5,340	$	49	$	30,776
Loans, net of deferred fees and costs	$	2,190,641	$	7,177,726	$	8,384,486	$	5,065,877	$	3,369,762	$	6,915,907	$	10,678,373	$	570,765	$	44,353,537
Current YTD Period:
Gross charge-offs	$	74	$	4,495	$	18,999	$	6,145	$	2,664	$	2,520	$	26,442	$	252	$	61,591

(1) The majority of loans within Substandard risk grade are accruing loans at June 30, 2023.

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

(3) 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.

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

(5) Includes $7.9 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.

Schedule of Financing Receivable, Allowance for Credit Loss

The following tables detail the changes in the ALL by loan segment for the three and six months ended June 30, 2023 and 2022. During the three and six months ended June 30, 2023 and 2022, Synovus charged-off $1.3 million and $7.9 million in previously established reserves for credit losses associated with the transfer of $3.8 million and $427.9 million, respectively, in certain third-party consumer loans to held for sale as part of our overall balance sheet management strategy. $711 thousand in reserves were added as a result of purchases of $10.6 million of third-party lending loans for the three months ended June 30, 2023. $3.7 million and $7.5 million in reserves were added as a result of purchases of $180.2 million and $361.6 million of third-party lending loans for the three and six months ended June 30, 2022, respectively.


	As Of and For the Three Months Ended June 30, 2023
(in thousands)	Commercial & Industrial		Commercial Real Estate		Consumer		Total
Allowance for loan losses:
Beginning balance at March 31, 2023	$	158,688	$	160,392	$	137,930	$	457,010
Charge-offs	(22,841)		(5)		(13,410)		(36,256)
Recoveries	6,402		378		3,080		9,860
Provision for (reversal of) loan losses	17,738		8,961		13,925		40,624
Ending balance at June 30, 2023	$	159,987	$	169,726	$	141,525	$	471,238

	As Of and For the Three Months Ended June 30, 2022
(in thousands)	Commercial & Industrial		Commercial Real Estate		Consumer		Total
Allowance for loan losses:
Beginning balance at March 31, 2022	$	178,722	$	94,696	$	141,538	$	414,956
Charge-offs	(15,512)		(252)		(7,934)		(23,698)
Recoveries	3,208		572		3,353		7,133
Provision for (reversal of) loan losses	(6,410)		9,202		6,654		9,446
Ending balance at June 30, 2022	$	160,008	$	104,218	$	143,611	$	407,837

	As Of and For the Six Months Ended June 30, 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	(30,714)		(101)		(30,776)		(61,591)
Recoveries	9,878		662		6,105		16,645
Provision for (reversal of) loan losses	19,273		25,590		27,897		72,760
Ending balance at June 30, 2023	$	159,987	$	169,726	$	141,525	$	471,238

	As Of and For the Six Months Ended June 30, 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	(29,275)		(2,708)		(16,862)		(48,845)
Recoveries	5,571		933		7,167		13,671
Provision for (reversal of) loan losses	(4,652)		8,233		11,833		15,414
Ending balance at June 30, 2022	$	160,008	$	104,218	$	143,611	$	407,837

Amortized Cost Basis of Loans by Loan Portfolio Class

The following table presents the amortized cost of FDM loans by loan portfolio class that were modified during the three and six months ended June 30, 2023.



	Three Months Ended June 30, 2023
(in thousands)	Interest Rate Reduction		Term Extension		Principal Forgiveness and Term Extensions		Interest Rate Reduction and Term Extension		Total		Percentage of Total by Financing Class
Commercial, financial and agricultural	$	1,972	$	7,464	$	13,401	$	1,187	$	24,024	0.2	%
Owner-occupied	—		388		—		—		388		—
Total commercial and industrial	1,972		7,852		13,401		1,187		24,412		0.1
Investment properties	—		660		—		—		660		—
1-4 family properties	—		1,680		—		382		2,062		0.3
Land and development	—		—		—		—		—		—
Total commercial real estate	—		2,340		—		382		2,722		—
Consumer mortgages	695		—		—		—		695		—
Home equity	—		339		—		276		615		—
Credit cards	—		—		—		—		—		—
Other consumer loans	2		314		—		256		572		—
Total consumer	697		653		—		532		1,882		—
Total FDMs	$	2,669	$	10,845	$	13,401	$	2,101	$	29,016	0.1	%

	Six Months Ended June 30, 2023
(in thousands)	Interest Rate Reduction		Term Extension		Principal Forgiveness and Term Extensions		Interest Rate Reduction and Term Extension		Total		Percentage of Total by Financing Class
Commercial, financial and agricultural	$	1,972	$	22,297	$	13,401	$	1,428	$	39,098	0.3	%
Owner-occupied	—		1,828		—		41,259		43,087		0.5
Total commercial and industrial	1,972		24,125		13,401		42,687		82,185		0.4
Investment properties	—		660		—		—		660		—
1-4 family properties	—		3,006		—		382		3,388		0.6
Land and development	—		—		—		—		—		—
Total commercial real estate	—		3,666		—		382		4,048		—
Consumer mortgages	807		—		—		—		807		—
Home equity	—		426		—		290		716		—
Credit cards	—		—		—		—		—		—
Other consumer loans	2		450		—		482		934		0.1
Total consumer	809		876		—		772		2,457		—
Total FDMs	$	2,781	$	28,667	$	13,401	$	43,841	$	88,690	0.2	%

The following presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2023.


	Three Months Ended June 30, 2023					Six Months Ended June 30, 2023
(Dollars in thousands)	Principal Forgiveness and Term Extensions		Weighted Average Interest Rate Reduction		Weighted Average Term Extension (in months)	Principal Forgiveness and Term Extensions		Weighted Average Interest Rate Reduction		Weighted Average Term Extension (in months)
Commercial, financial and agricultural	$	1,200	1.1	%	41	$	1,200	1.2	%	28
Owner-occupied	—		—		17	—		1.7		9

Investment properties	—		—		30	—		—		30
1-4 family properties	—		0.3		12	—		0.3		12


Consumer mortgages	—		1.9		0	—		1.6		0
Home equity	—		0.4		250	—		0.5		262

Other consumer loans	—		2.7		61	—		3.1		64

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 June 30, 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	$	25,697	$	—	$	—	$	13,401	$	39,098
Owner-occupied	43,087		—		—		—		43,087
Total commercial and industrial	68,784		—		—		13,401		82,185
Investment properties	660		—		—		—		660
1-4 family properties	1,708		—		—		1,680		3,388
Land and development	—		—		—		—		—
Total commercial real estate	2,368		—		—		1,680		4,048
Consumer mortgages	—		—		—		807		807
Home equity	716		—		—		—		716
Credit cards	—		—		—		—		—
Other consumer loans	386		—		—		548		934
Total consumer	1,102		—		—		1,355		2,457
Total FDMs	$	72,254	$	—	$	—	$	16,436	$	88,690

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

The following tables present, by concession

type, the post-modification balance for loans modified or renewed during the three and six months ended June 30, 2022 that were reported as accruing or non-accruing TDRs.


TDRs by Concession Type
	Three Months Ended June 30, 2022
(in thousands, except contract data)	Number of Contracts	Below Market Interest Rate		Other Concessions(1)		Total
Commercial, financial and agricultural	23	$	8,534	$	266	$	8,800
Owner-occupied	7	22,430		—		22,430
Total commercial and industrial	30	30,964		266		31,230
Investment properties	2	690		—		690
1-4 family properties	4	1,984		—		1,984
Land and development	1	437		—		437
Total commercial real estate	7	3,111		—		3,111
Consumer mortgages	3	159		162		321
Home equity	14	2,490		39		2,529
Other consumer loans	4	—		91		91
Total consumer	21	2,649		292		2,941
Total TDRs	58	$	36,724	$	558	$	37,282	(2)

	Six Months Ended June 30, 2022
(in thousands, except contract data)	Number of Contracts	Below Market Interest Rate		Other Concessions(1)		Total
Commercial, financial and agricultural	56	$	26,434	$	807	$	27,241
Owner-occupied	20	28,534		3,857		32,391
Total commercial and industrial	76	54,968		4,664		59,632
Investment properties	5	1,279		6,610		7,889
1-4 family properties	11	3,197		—		3,197
Land and development	4	3,168		—		3,168
Total commercial real estate	20	7,644		6,610		14,254
Consumer mortgages	10	1,176		266		1,442
Home equity	25	3,419		39		3,458
Other consumer loans	6	—		139		139
Total consumer	41	4,595		444		5,039
Total TDRs	137	$	67,207	$	11,718	$	78,925	(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 and six months ended June 30, 2022.

(2) No net charge-offs were recorded during the three and six months ended June 30, 2022.