Loans and Allowance for Loan Losses

6 Months Ended

Jun. 30, 2024

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 June 30, 2024 and December 31, 2023.

	June 30, 2024
(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	$	14,386,965	$	10,292	$	2,244	$	12,536	$	82,602	$	37,505	$	14,519,608
Owner-occupied	7,961,449		4,578		—		4,578		30,004		20,973		8,017,004
Total commercial and industrial(1)	22,348,414		14,870		2,244		17,114		112,606		58,478		22,536,612
Investment properties	11,238,010		78,115		356		78,471		10,004		1,564		11,328,049
1-4 family properties	548,220		1,267		—		1,267		2,878		182		552,547
Land and development	332,087		1,895		—		1,895		909		—		334,891
Total commercial real estate	12,118,317		81,277		356		81,633		13,791		1,746		12,215,487
Consumer mortgages	5,316,899		5,913		—		5,913		48,352		—		5,371,164
Home equity	1,787,853		10,107		33		10,140		14,947		—		1,812,940
Credit cards	175,418		1,665		1,806		3,471		—		—		178,889
Other consumer loans	960,631		11,467		21		11,488		6,186		—		978,305
Total consumer	8,240,801		29,152		1,860		31,012		69,485		—		8,341,298
Loans, net of deferred fees and costs(2)	$	42,707,532	$	125,299	$	4,460	$	129,759	$	195,882	$	60,224	$	43,093,397

                                                                                                                                                                                                                                                                                                                                                                        

	December 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	$	14,355,414	$	12,264	$	1,797	$	14,061	$	66,400	$	23,470	$	14,459,345
Owner-occupied	8,041,573		6,056		149		6,205		70,784		20,586		8,139,148
Total commercial and industrial(1)	22,396,987		18,320		1,946		20,266		137,184		44,056		22,598,493
Investment properties	11,322,516		740		278		1,018		12,796		26,974		11,363,304
1-4 family properties	595,359		87		—		87		2,605		451		598,502
Land and development	353,477		671		—		671		804		—		354,952
Total commercial real estate	12,271,352		1,498		278		1,776		16,205		27,425		12,316,758
Consumer mortgages	5,359,153		6,462		—		6,462		46,108		—		5,411,723
Home equity	1,785,836		10,374		716		11,090		10,473		—		1,807,399
Credit cards	190,299		1,818		2,024		3,842		—		—		194,141
Other consumer loans	1,053,587		15,574		89		15,663		6,697		29		1,075,976
Total consumer	8,388,875		34,228		2,829		37,057		63,278		29		8,489,239
Loans, net of deferred fees and costs(2)	$	43,057,214	$	54,046	$	5,053	$	59,099	$	216,667	$	71,510	$	43,404,490

(1) Includes senior housing loans of $3.02 billion and $3.28 billion at June 30, 2024 and December 31, 2023, respectively, which are primarily classified as owner-occupied in accordance with our underwriting process.

(2) The amortized cost basis of loans, net of deferred fees and costs excludes accrued interest receivable of $249.9 million and $256.3 million at June 30, 2024 and December 31, 2023, respectively, which is presented as a component of other assets on the consolidated balance sheets.

Pledged Loans

Loans with carrying values of $25.09 billion and $24.31 billion, respectively, were pledged as collateral for borrowings and capacity at June 30, 2024 and December 31, 2023, 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, 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, and personal 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 June 30, 2024 and December 31, 2023 as required under CECL.

	June 30, 2024
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans
(in thousands)	2024		2023		2022		2021		2020		Prior		Amortized Cost Basis		Converted to Term Loans		Total
Commercial, financial and agricultural
Pass	$	626,567	$	1,098,785	$	911,677	$	1,320,817	$	730,590	$	1,728,030	$	7,468,133	$	62,057	$	13,946,656
Special Mention	333		8,268		5,942		17,953		858		10,710		143,327		1,807		189,198
Substandard	22,334		20,633		44,640		18,700		37,393		23,669		191,115		3,737		362,221
Doubtful	—		—		—		9,911		390		—		10,684		—		20,985
Loss	—		—		—		—		—		—		548		—		548
Total commercial, financial and agricultural	649,234		1,127,686		962,259		1,367,381		769,231		1,762,409		7,813,807		67,601		14,519,608
Current YTD Period:
Gross charge-offs	1,479		16,013		2,861		8,447		715		2,597		32,293		—		64,405
Owner-occupied
Pass	314,814		947,696		1,545,933		1,369,707		906,405		1,909,641		653,228		—		7,647,424
Special Mention	1,110		1,839		5,249		21,824		34,531		58,147		—		—		122,700
Substandard	193		4,939		39,397		29,460		48,691		71,850		35,944		—		230,474
Doubtful	—		—		—		—		—		—		16,406		—		16,406
Total owner-occupied	316,117		954,474		1,590,579		1,420,991		989,627		2,039,638		705,578		—		8,017,004
Current YTD Period:
Gross charge-offs	—		76		—		—		1,538		6,303		—		—		7,917
Total commercial and industrial	965,351		2,082,160		2,552,838		2,788,372		1,758,858		3,802,047		8,519,385		67,601		22,536,612
Current YTD Period:
Gross charge-offs	$	1,479	$	16,089	$	2,861	$	8,447	$	2,253	$	8,900	$	32,293	$	—	$	72,322
Investment properties
Pass	233,067		697,423		3,391,129		2,691,967		933,578		2,628,003		206,596		—		10,781,763
Special Mention	4		285		71,813		137,073		44,224		70,128		—		—		323,527
Substandard	—		2,975		16,159		135,707		2,054		65,859		—		—		222,754
Loss	—		—		—		—		—		5		—		—		5
Total investment properties	233,071		700,683		3,479,101		2,964,747		979,856		2,763,995		206,596		—		11,328,049
Current YTD Period:
Gross charge-offs	—		—		—		—		—		3,738		—		—		3,738
1-4 family properties
Pass	67,911		115,810		109,798		109,112		30,592		66,683		46,728		—		546,634
Special Mention	—		—		711		491		179		92		—		—		1,473
Substandard	—		749		51		944		285		2,366		45		—		4,440
Total 1-4 family properties	67,911		116,559		110,560		110,547		31,056		69,141		46,773		—		552,547
Current YTD Period:
Gross charge-offs	—		103		—		—		—		133		—		—		236

	June 30, 2024
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans
(in thousands)	2024		2023		2022		2021		2020		Prior		Amortized Cost Basis		Converted to Term Loans		Total
Land and development
Pass	52,343		95,588		66,267		28,699		8,969		66,360		12,802		—		331,028
Special Mention	—		—		483		29		—		1,165		—		—		1,677
Substandard	—		561		—		—		195		1,430		—		—		2,186
Total land and development	52,343		96,149		66,750		28,728		9,164		68,955		12,802		—		334,891
Current YTD Period:
Gross charge-offs	—		—		—		—		—		—		—		—		—
Total commercial real estate	353,325		913,391		3,656,411		3,104,022		1,020,076		2,902,091		266,171		—		12,215,487
Current YTD Period:
Gross charge-offs	$	—	$	103	$	—	$	—	$	—	$	3,871	$	—	$	—	$	3,974
Consumer mortgages
Pass	246,139		739,069		725,131		993,128		1,164,849		1,438,748		592		—		5,307,656
Substandard	287		1,880		3,521		6,332		17,396		34,060		—		—		63,476
Loss	—		—		—		—		—		32		—		—		32
Total consumer mortgages	246,426		740,949		728,652		999,460		1,182,245		1,472,840		592		—		5,371,164
Current YTD Period:
Gross charge-offs	—		—		—		—		25		109		—		—		134
Home equity
Pass	—		—		—		—		—		—		1,338,972		455,684		1,794,656
Substandard	—		—		—		—		—		—		11,874		6,161		18,035
Loss	—		—		—		—		—		—		165		84		249
Total home equity	—		—		—		—		—		—		1,351,011		461,929		1,812,940
Current YTD Period:
Gross charge-offs	—		—		—		—		—		—		—		32		32
Credit cards
Pass	—		—		—		—		—		—		177,086		—		177,086
Substandard	—		—		—		—		—		—		524		—		524
Loss	—		—		—		—		—		—		1,279		—		1,279
Total credit cards	—		—		—		—		—		—		178,889		—		178,889
Current YTD Period:
Gross charge-offs	—		—		—		—		—		—		3,892		—		3,892
Other consumer loans
Pass	75,143		98,329		146,434		176,291		94,170		111,612		268,946		—		970,925
Substandard	—		680		1,301		3,382		1,274		636		68		—		7,341
Loss	—		—		12		—		—		—		27		—		39
Total other consumer loans	75,143		99,009		147,747		179,673		95,444		112,248		269,041		—		978,305
Current YTD Period:
Gross charge-offs	19		1,464		2,675		4,267		1,277		1,501		1,302		—		12,505
Total consumer	321,569		839,958		876,399		1,179,133		1,277,689		1,585,088		1,799,533		461,929		8,341,298
Current YTD Period:
Gross charge-offs	$	19	$	1,464	$	2,675	$	4,267	$	1,302	$	1,610	$	5,194	$	32	$	16,563
Loans, net of deferred fees and costs	$	1,640,245	$	3,835,509	$	7,085,648	$	7,071,527	$	4,056,623	$	8,289,226	$	10,585,089	$	529,530	$	43,093,397
Current YTD Period:
Gross charge-offs	$	1,498	$	17,656	$	5,536	$	12,714	$	3,555	$	14,381	$	37,487	$	32	$	92,859

	December 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	$	1,078,790	$	1,040,742	$	1,408,178	$	782,069	$	636,341	$	1,236,433	$	7,623,255	$	46,908	$	13,852,716
Special Mention	5,298		8,276		20,027		1,950		2,552		8,412		141,580		—		188,095
Substandard	36,557		14,742		35,744		37,186		88,940		21,032		182,069		1,685		417,955
Loss	—		—		—		—		—		355		224		—		579
Total commercial, financial and agricultural	1,120,645		1,063,760		1,463,949		821,205		727,833		1,266,232		7,947,128		48,593		14,459,345
Current YTD Period:
Gross charge-offs	9,367		3,436		8,175		19,532		1,165		2,071		30,696		203		74,645
Owner-occupied
Pass	859,887		1,521,469		1,501,405		958,620		710,634		1,401,416		782,180		—		7,735,611
Special Mention	1,709		9,114		22,562		2,593		4,689		48,640		79,031		—		168,338
Substandard	4,388		24,760		13,616		59,478		17,702		87,306		27,949		—		235,199
Total owner-occupied	865,984		1,555,343		1,537,583		1,020,691		733,025		1,537,362		889,160		—		8,139,148
Current YTD Period:
Gross charge-offs	—		—		433		6,836		1,544		2,862		—		—		11,675
Total commercial and industrial	1,986,629		2,619,103		3,001,532		1,841,896		1,460,858		2,803,594		8,836,288		48,593		22,598,493
Current YTD Period:
Gross charge-offs	$	9,367	$	3,436	$	8,608	$	26,368	$	2,709	$	4,933	$	30,696	$	203	$	86,320
Investment properties
Pass	593,540		3,140,041		2,863,327		1,161,697		1,052,638		1,900,744		261,737		—		10,973,724
Special Mention	—		1,616		169,550		—		48,429		33,903		—		—		253,498
Substandard	2,083		4,070		41,278		1,455		1,622		75,850		—		—		126,358
Doubtful	—		—		—		—		—		9,714		—		—		9,714
Loss	—		—		—		—		—		10		—		—		10
Total investment properties	595,623		3,145,727		3,074,155		1,163,152		1,102,689		2,020,221		261,737		—		11,363,304
Current YTD Period:
Gross charge-offs(1)	546		7,685		5,668		3,801		1,893		22,647		3,109		—		45,349
1-4 family properties
Pass	167,729		142,930		119,054		31,928		29,740		55,243		42,099		—		588,723
Special Mention	3,104		947		—		184		—		311		1		—		4,547
Substandard	1,721		822		643		465		324		1,212		45		—		5,232
Total 1-4 family properties	172,554		144,699		119,697		32,577		30,064		56,766		42,145		—		598,502
Current YTD Period:
Gross charge-offs	—		—		—		—		—		24		—		—		24
Land and development
Pass	105,609		84,962		35,993		16,131		18,616		59,605		888		—		321,804
Special Mention	—		496		—		—		—		774		—		—		1,270
Substandard	29,204		411		74		—		593		1,596		—		—		31,878
Total land and development	134,813		85,869		36,067		16,131		19,209		61,975		888		—		354,952
Current YTD Period:
Gross charge-offs	—		—		—		77		—		—		—		—		77
Total commercial real estate	902,990		3,376,295		3,229,919		1,211,860		1,151,962		2,138,962		304,770		—		12,316,758
Current YTD Period:
Gross charge-offs	$	546	$	7,685	$	5,668	$	3,878	$	1,893	$	22,671	$	3,109	$	—	$	45,450

	December 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
Consumer mortgages
Pass	$	757,485	$	784,898	$	1,044,442	$	1,219,397	$	410,511	$	1,136,541	$	35	$	—	$	5,353,309
Substandard	564		2,810		5,517		15,913		9,478		23,662		—		—		57,944
Loss	—		—		—		—		—		470		—		—		470
Total consumer mortgages	758,049		787,708		1,049,959		1,235,310		419,989		1,160,673		35		—		5,411,723
Current YTD Period:
Gross charge-offs	—		108		251		403		402		965		5		—		2,134
Home equity
Pass	—		—		—		—		—		—		1,308,934		482,679		1,791,613
Substandard	—		—		—		—		—		—		10,231		5,297		15,528
Loss	—		—		—		—		—		—		174		84		258
Total home equity	—		—		—		—		—		—		1,319,339		488,060		1,807,399
Current YTD Period:
Gross charge-offs	—		—		—		—		—		79		819		229		1,127
Credit cards
Pass	—		—		—		—		—		—		192,217		—		192,217
Substandard	—		—		—		—		—		—		702		—		702
Loss	—		—		—		—		—		—		1,222		—		1,222
Total credit cards	—		—		—		—		—		—		194,141		—		194,141
Current YTD Period:
Gross charge-offs	—		—		—		—		—		—		7,165		—		7,165
Other consumer loans
Pass	134,969		181,455		219,415		114,006		28,256		112,724		277,368		—		1,068,193
Substandard	573		963		3,811		1,182		568		494		192		—		7,783
Total other consumer loans	135,542		182,418		223,226		115,188		28,824		113,218		277,560		—		1,075,976
Current YTD Period:
Gross charge-offs(1)	627		6,040		24,231		3,625		1,971		2,026		2,358		—		40,878
Total consumer	893,591		970,126		1,273,185		1,350,498		448,813		1,273,891		1,791,075		488,060		8,489,239
Current YTD Period:
Gross charge-offs	$	627	$	6,148	$	24,482	$	4,028	$	2,373	$	3,070	$	10,347	$	229	$	51,304
Loans, net of deferred fees and costs	$	3,783,210	$	6,965,524	$	7,504,636	$	4,404,254	$	3,061,633	$	6,216,447	$	10,932,133	$	536,653	$	43,404,490
Current YTD Period:
Gross charge-offs	$	10,540	$	17,269	$	38,758	$	34,274	$	6,975	$	30,674	$	44,152	$	432	$	183,074

(1)    Includes $31.3 million in gross charge-offs related to the transfer of certain loans to held for sale that sold during 2023.

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 material changes in the extent to which collateral secures our collateral-dependent loans during the three and six months ended June 30, 2024.

Rollforward of Allowance for Loan Losses

The following tables detail the changes in the ALL by loan segment for the three and six months ended June 30, 2024 and 2023. During the three and six months ended June 30, 2024, Synovus had no significant transfers to loans held for sale. During the three and six months ended June 30, 2023, 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.

	As Of and For the Three Months Ended June 30, 2024
(in thousands)	Commercial & Industrial		Commercial Real Estate		Consumer		Total
Allowance for loan losses:
Beginning balance at March 31, 2024	$	213,482	$	152,627	$	126,552	$	492,661
Charge-offs	(34,379)		(263)		(7,649)		(42,291)
Recoveries	4,589		462		2,755		7,806
Provision for (reversal of) loan losses	37,038		(11,146)		1,033		26,925
Ending balance at June 30, 2024	$	220,730	$	141,680	$	122,691	$	485,101
	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 Six Months Ended June 30, 2024
(in thousands)	Commercial & Industrial		Commercial Real Estate		Consumer		Total
Allowance for loan losses:
Beginning balance at December 31, 2023	$	218,970	$	133,758	$	126,657	$	479,385
Charge-offs	(72,322)		(3,974)		(16,563)		(92,859)
Recoveries	7,877		1,229		4,912		14,018
Provision for (reversal of) loan losses	66,205		10,667		7,685		84,557
Ending balance at June 30, 2024	$	220,730	$	141,680	$	122,691	$	485,101
	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

The ALL of $485.1 million and the reserve for unfunded commitments of $53.1 million, which is recorded in other liabilities, comprise the total ACL of $538.2 million at June 30, 2024. The ACL increased $1.5 million compared to the December 31, 2023 ACL of $536.6 million, which consisted of the ALL of $479.4 million and a reserve for unfunded commitments of $57.2 million. The ACL to loans coverage ratio of 1.25% at June 30, 2024 was 1 bp higher compared to 1.24% at December 31, 2023. The increase in the ACL from December 31, 2023 resulted primarily from credit performance that included downward migration and a qualitative adjustment, as well as net loan production. This was partially offset by improved economic inputs.

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 June 30, 2024, the unemployment rate is the input that most significantly impacts our estimate. The multi-scenario forecast used in our estimate includes a weighted average unemployment rate of 4.4% over the forecasted period at June 30, 2024, compared to 4.5% at December 31, 2023.

Financial Difficulty Modifications

When borrowers are experiencing financial difficulty, Synovus may make certain loan modifications as part of its loss mitigation strategies to maximize expected payment. See "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 - Summary of Significant Accounting Policies" of Synovus' 2023 Form 10-K for additional information regarding accounting policies for FDMs.

The following tables present the amortized cost of FDM loans by loan portfolio class that were modified during the three and six months ended June 30, 2024 and 2023.

	Three Months Ended June 30, 2024
(in thousands)	Interest Rate Reduction		Term Extension		Payment Delay		Total		Percentage of Total by Financing Class
Commercial, financial and agricultural	$	—	$	9,109	$	—	$	9,109	0.1	%
Total commercial and industrial	—		9,109		—		9,109		—
Total commercial real estate	—		—		—		—		—
Other consumer loans	58		211		—		269		—
Total consumer	58		211		—		269		—
Total FDMs	$	58	$	9,320	$	—	$	9,378	—	%
	Six Months Ended June 30, 2024
(in thousands)	Interest Rate Reduction		Term Extension		Payment Delay		Total		Percentage of Total by Financing Class
Commercial, financial and agricultural	$	—	$	11,638	$	—	$	11,638	0.1	%
Owner-occupied	—		193		—		193		—
Total commercial and industrial	—		11,831		—		11,831		0.1
Investment properties	—		2,236		—		2,236		—
Total commercial real estate	—		2,236		—		2,236		—
Consumer mortgages	123		—		210		333		—
Other consumer loans	179		463		—		642		0.1
Total consumer	302		463		210		975		—
Total FDMs	$	302	$	14,530	$	210	$	15,042	—	%

	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 tables present the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2024 and 2023.

	Three Months Ended June 30, 2024			Six Months Ended June 30, 2024
(dollars in thousands)	Weighted Average Interest Rate Reduction		Weighted Average Term Extension (in months)	Weighted Average Interest Rate Reduction		Weighted Average Term Extension (in months)	Weighted Average Payment Delay (in months)
Commercial, financial and agricultural	—	%	20	—	%	19	—
Owner-occupied	—		—	—		60	—
Investment properties	—		—	—		12	—
Consumer mortgages	—		—	2.3		—	7
Other consumer loans	7.5		66	4.0		71	—

	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		—	—		1.6		—
Home equity	—		0.4		250	—		0.5		262
Other consumer loans	—		2.7		61	—		3.1		64

During the three and six months ended June 30, 2024, commercial, financial and agricultural loans of $3.1 million and $74.7 million, respectively, defaulted that were previously modified in the prior 12 months by receiving a term extension. During the three and six months ended June 30, 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 June 30, 2024 and December 31, 2023, there were no commitments to lend a material amount of additional funds to any borrower whose loan was classified as a FDM.

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 during the 12 months prior to June 30, 2024.

	As of June 30, 2024
(in thousands)	Current		Accruing 30-89 Days Past Due		Accruing 90 Days or Greater Past Due		Non-accrual		Total
Commercial, financial and agricultural	$	40,022	$	1,287	$	—	$	4,487	$	45,796
Owner-occupied	31,892		317		—		260		32,469
Total commercial and industrial	71,914		1,604		—		4,747		78,265
Investment properties	2,544		—		—		—		2,544
1-4 family properties	33		—		—		—		33
Land and development	1,100		—		—		—		1,100
Total commercial real estate	3,677		—		—		—		3,677
Consumer mortgages	542		—		—		1,553		2,095
Home equity	—		—		—		—		—
Credit cards	—		—		—		—		—
Other consumer loans	854		174		—		332		1,360
Total consumer	1,396		174		—		1,885		3,455
Total FDMs	$	76,987	$	1,778	$	—	$	6,632	$	85,397

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 were modified on or after January 1, 2023, the date Synovus adopted ASU 2022-02, through June 30, 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.