Note 6 - Loans and Allowance for Loan Losses

The following is a summary of current, accruing past due, and non-accrual loans by portfolio class as of June 30, 2014 and December 31, 2013.



Current, Accruing Past Due, and Non-accrual Loans
	June 30, 2014
(in thousands)	Current		Accruing 30-89 Days Past Due	Accruing 90 Days or Greater Past Due	Total Accruing Past Due	Non-accrual	Total
Investment properties	$	4,767,934	1,488	—	1,488	40,927	4,810,349
1-4 family properties	1,026,506		5,455	417	5,872	26,711	1,059,089
Land acquisition	553,949		1,695	347	2,042	42,564	598,555
Total commercial real estate	6,348,389		8,638	764	9,402	110,202	6,467,993
Commercial, financial and agricultural	5,504,255		11,977	806	12,783	57,903	5,574,941
Owner-occupied	3,748,944		7,502	828	8,330	29,005	3,786,279
Small business	873,574		5,134	652	5,786	7,210	886,570
Total commercial and industrial	10,126,773		24,613	2,286	26,899	94,118	10,247,790
Home equity lines	1,641,202		6,781	141	6,922	16,396	1,664,520
Consumer mortgages	1,512,811		11,652	215	11,867	36,433	1,561,111
Credit cards	252,538		1,502	1,329	2,831	—	255,369
Other retail	283,030		2,444	63	2,507	2,398	287,935
Total retail	3,689,581		22,379	1,748	24,127	55,227	3,768,935
Total loans	$	20,164,743	55,630	4,798	60,428	259,547	20,484,718	⁽¹	⁾

	December 31, 2013
(in thousands)	Current		Accruing 30-89 Days Past Due	Accruing 90 Days or Greater Past Due	Total Accruing Past Due	Non-accrual	Total
Investment properties	$	4,533,708	3,552	40	3,592	66,454	4,603,754
1-4 family properties	1,115,858		6,267	527	6,794	33,819	1,156,471
Land acquisition	549,838		1,100	300	1,400	154,095	705,333
Total commercial real estate	6,199,404		10,919	867	11,786	254,368	6,465,558
Commercial, financial and agricultural	5,413,614		16,251	721	16,972	59,628	5,490,214
Owner-occupied	3,749,052		9,341	66	9,407	36,980	3,795,439
Small business	676,947		4,506	155	4,661	5,608	687,216
Total commercial and industrial	9,839,613		30,098	942	31,040	102,216	9,972,869
Home equity lines	1,564,578		4,919	136	5,055	17,908	1,587,541
Consumer mortgages	1,460,219		18,068	1,011	19,079	39,770	1,519,068
Credit cards	253,422		1,917	1,507	3,424	—	256,846
Other retail	280,524		2,190	26	2,216	2,038	284,778
Total retail	3,558,743		27,094	2,680	29,774	59,716	3,648,233
Total loans	$	19,597,760	68,111	4,489	72,600	416,300	20,086,660	⁽²	⁾

⁽¹⁾Total before net deferred fees and costs of $29.0 million.

⁽²⁾Total before net deferred fees and costs of $28.9 million.

The credit quality of the loan portfolio is summarized 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.

In the following tables, retail loans and small business 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 Uniform Retail Credit Classification and Account Management Policy. Additionally, in accordance with the Interagency Supervisory Guidance on Allowance for Loan and Lease Losses Estimation Practices for Loans and Lines of Credit Secured by Junior Liens on 1-4 Family Residential Properties, the risk grade classifications of retail loans (home equity lines and consumer mortgages) secured by junior liens on 1-4 family residential properties also consider available information on the payment status of the associated senior lien with other financial institutions.



Loan Portfolio Credit Exposure by Risk Grade
	June 30, 2014
(in thousands)	Pass		Special Mention	Substandard⁽¹⁾	Doubtful⁽²⁾	Loss		Total
Investment properties	$	4,453,645	228,334	128,370	—	—		4,810,349
1-4 family properties	832,074		100,763	118,205	8,047	—		1,059,089
Land acquisition	463,764		60,134	73,717	940	—		598,555
Total commercial real estate	5,749,483		389,231	320,292	8,987	—		6,467,993
Commercial, financial and agricultural	5,209,016		186,667	170,974	8,199	85	⁽³⁾	5,574,941
Owner-occupied	3,478,985		160,617	145,732	512	433	⁽³⁾	3,786,279
Small business	871,090		—	14,249	1,231	—		886,570
Total commercial and industrial	9,559,091		347,284	330,955	9,942	518		10,247,790
Home equity lines	1,640,278		—	20,559	1,660	2,023	⁽³⁾	1,664,520
Consumer mortgages	1,518,211		—	40,499	2,158	243	⁽³⁾	1,561,111
Credit cards	254,039		—	382	—	948	⁽⁴⁾	255,369
Other retail	283,873		—	3,920	32	110	⁽³⁾	287,935
Total retail	3,696,401		—	65,360	3,850	3,324		3,768,935
Total loans	$	19,004,975	736,515	716,607	22,779	3,842		20,484,718	⁽⁵	⁾

	December 31, 2013
(in thousands)	Pass		Special Mention	Substandard⁽¹⁾	Doubtful⁽²⁾	Loss		Total
Investment properties	$	4,184,748	249,890	167,392	1,724	—		4,603,754
1-4 family properties	892,512		126,715	128,890	8,062	292	⁽³⁾	1,156,471
Land acquisition	421,956		94,316	186,514	2,547	—		705,333
Total commercial real estate	5,499,216		470,921	482,796	12,333	292		6,465,558
Commercial, financial and agricultural	5,053,808		224,620	201,410	10,286	90	⁽³⁾	5,490,214
Owner-occupied	3,478,359		155,097	160,173	1,810	—		3,795,439
Small business	674,200		—	12,219	797	—		687,216
Total commercial and industrial	9,206,367		379,717	373,802	12,893	90		9,972,869
Home equity lines	1,559,272		—	24,931	1,448	1,890	⁽³⁾	1,587,541
Consumer mortgages	1,475,928		—	40,935	1,918	287	⁽³⁾	1,519,068
Credit cards	255,339		—	541	—	966	⁽⁴⁾	256,846
Other retail	281,179		—	3,400	75	124	⁽³⁾	284,778
Total retail	3,571,718		—	69,807	3,441	3,267		3,648,233
Total loans	$	18,277,301	850,638	926,405	28,667	3,649		20,086,660	₍₆	₎

⁽¹⁾ Includes $232.9 million and $384.0 million of non-accrual Substandard loans at June 30, 2014 and December 31, 2013, respectively.

⁽²⁾ The loans within this risk grade are on non-accrual status and have an allowance for loan losses generally equal to 50% of the loan amount.

⁽³⁾ The loans within this risk grade are on non-accrual status and have an allowance for loan losses 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 allowance for loan losses equal to the full loan amount and are generally charged off upon reaching 181 days past due in accordance with the FFIEC Uniform Retail Credit Classification and Account Management Policy.

⁽⁵⁾Total before net deferred fees and costs of $29.0 million.

⁽⁶⁾Total before net deferred fees and costs of $28.9 million.

The following table details the changes in the allowance for loan losses by loan segment for the six months ended June 30, 2014 and 2013.



Allowance for Loan Losses and Recorded Investment in Loans
	As Of and For The Six Months Ended June 30, 2014
(in thousands)	Commercial Real Estate			Commercial & Industrial		Retail		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	127,012		116,069		41,479		23,000		307,560
Allowance for loan losses of sold branches	(281		)	(398	)	(340	)	—		(1,019	)
Charge-offs	(35,906		)	(15,590	)	(12,860	)	—		(64,356	)
Recoveries	5,216			4,308		4,279		—		13,803
Provision (credit) for loan losses	6,183			28,585		10,027		(23,000	)	21,795
Ending balance	$	102,224		132,974		42,585		—		277,783
Ending balance: individually evaluated for impairment	21,470			19,053		961		—		41,484
Ending balance: collectively evaluated for impairment	$	80,754		113,921		41,624		—		236,299
Loans:
Ending balance: total loans⁽¹⁾	$	6,467,993		10,247,790		3,768,935		—		20,484,718
Ending balance: individually evaluated for impairment	331,414			202,899		51,181		—		585,494
Ending balance: collectively evaluated for impairment	$	6,136,579		10,044,891		3,717,754		—		19,899,224

	As Of and For The Six Months Ended June 30, 2013
(in thousands)	Commercial Real Estate			Commercial & Industrial		Retail		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	167,926		138,495		38,984		28,000		373,405
Charge-offs	(64,351		)	(30,232	)	(20,452	)	—		(115,035	)
Recoveries	9,095			15,114		3,528		—		27,737
Provision (credit) for loan losses	25,659			9,813		18,301		(5,000	)	48,773
Ending balance	$	138,329		133,190		40,361		23,000		334,880
Ending balance: individually evaluated for impairment	47,039			27,775		1,197		—		76,011
Ending balance: collectively evaluated for impairment	$	91,290		105,415		39,164		23,000		258,869
Loans:
Ending balance: total loans⁽²⁾	$	6,414,750		9,727,959		3,489,341		—		19,632,050
Ending balance: individually evaluated for impairment	624,402			284,559		58,491		—		967,452
Ending balance: collectively evaluated for impairment	$	5,790,348		9,443,400		3,430,850		—		18,664,598

⁽¹⁾Total before net deferred fees and costs of $29.0 million.

⁽²⁾Total before net deferred fees and costs of $23.8 million.

The following table details the changes in the allowance for loan losses by loan segment for the three months ended June 30, 2014 and 2013.



Allowance for Loan Losses and Recorded Investment in Loans
	As Of and For The Three Months Ended June 30, 2014
(in thousands)	Commercial Real Estate			Commercial & Industrial		Retail		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	126,955		128,346		45,570		—		300,871
Charge-offs	(27,960		)	(7,554	)	(6,567	)	—		(42,081	)
Recoveries	2,989			2,355		1,365		—		6,709
Provision for loan losses	240			9,827		2,217		—		12,284
Ending balance	$	102,224		132,974		42,585		—		277,783
Ending balance: individually evaluated for impairment	21,470			19,053		961		—		41,484
Ending balance: collectively evaluated for impairment	$	80,754		113,921		41,624		—		236,299
Loans:
Ending balance: total loans⁽¹⁾	$	6,467,993		10,247,790		3,768,935		—		20,484,718
Ending balance: individually evaluated for impairment	331,414			202,899		51,181		—		585,494
Ending balance: collectively evaluated for impairment	$	6,136,579		10,044,891		3,717,754		—		19,899,224

	As Of and For The Three Months Ended June 30, 2013
(in thousands)	Commercial Real Estate			Commercial & Industrial		Retail		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	145,991		134,657		43,124		28,000		351,772
Charge-offs	(28,075		)	(11,014	)	(8,827	)	—		(47,916	)
Recoveries	5,493			10,696		1,758		—		17,947
Provision (credit) for loan losses	14,920			(1,149	)	4,306		(5,000	)	13,077
Ending balance	$	138,329		133,190		40,361		23,000		334,880
Ending balance: individually evaluated for impairment	47,039			27,775		1,197		—		76,011
Ending balance: collectively evaluated for impairment	$	91,290		105,415		39,164		23,000		258,869
Loans:
Ending balance: total loans⁽²⁾	$	6,414,750		9,727,959		3,489,341		—		19,632,050
Ending balance: individually evaluated for impairment	624,402			284,559		58,491		—		967,452
Ending balance: collectively evaluated for impairment	$	5,790,348		9,443,400		3,430,850		—		18,664,598

⁽¹⁾Total before net deferred fees and costs of $29.0 million.

⁽²⁾Total before net deferred fees and costs of $23.8 million.

During the first quarter of 2014, Synovus designated $23.0 million of allowance for loan losses that was included in the unallocated component of the allowance for loan losses at December 31, 2013 to the allowance for loan losses allocated to the respective loan segments. The allocation of the allowance for loan losses to the loan segments related to the qualitative factors evaluated at December 31, 2013 on a total loan portfolio basis and included in the unallocated component of the allowance for loan losses at December 31, 2013. These qualitative factors consider the inherent risk of loss relating to the following:


•	experience, ability, and depth of lending management, loan review personnel, and other relevant staff


•	national and local economic trends and conditions


•	underlying value of collateral dependent loans, which impacts trends in charge-offs and recoveries that are not included in the expected loss factors


•	trends in volume and terms of loans


•	effects of changes in credit concentrations


•	model uncertainty

Management determined that, prospectively, the assessment of these qualitative factors for each loan segment would improve the overall level of precision of the allowance for loan loss estimation process. The designation of this component of the unallocated allowance to the allocated allowance did not result in a change to the total allowance for loan losses or provision expense for the first quarter of 2014. The allowance for loan losses continues to consist of an allocated component (which includes the qualitative factors noted above as well as the qualitative factors disclosed in Synovus' 2013 Form 10-K) and an unallocated component. Beginning March 31, 2014, the unallocated component relates to risk elements, if any, which are not already included in the allocated allowance.

The tables below summarize impaired loans (including accruing TDRs) as of June 30, 2014 and December 31, 2013.



Impaired Loans (including accruing TDRs)
	June 30, 2014				Six Months Ended June 30, 2014		Three Months Ended June 30, 2014
(in thousands)	Recorded Investment		Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized	Average Recorded Investment	Interest Income Recognized
With no related allowance recorded
Investment properties	$	34,064	45,351	—	20,840	—	27,491	—
1-4 family properties	4,036		21,206	—	6,901	—	5,219	—
Land acquisition	30,896		94,899	—	31,988	—	34,596	—
Total commercial real estate	68,996		161,456	—	59,729	—	67,306	—
Commercial, financial and agricultural	10,242		20,296	—	11,483	—	10,046	—
Owner-occupied	21,606		23,379	—	22,565	—	21,471	—
Small business	—		—	—	—	—	—	—
Total commercial and industrial	31,848		43,675	—	34,048	—	31,517	—
Home equity lines	—		—	—	—	—	—	—
Consumer mortgages	2,310		2,527	—	1,271	—	1,889	—
Credit cards	—		—	—	—	—	—	—
Other retail	—		—	—	—	—	—	—
Total retail	2,310		2,527	—	1,271	—	1,889	—
Total impaired loans with no related allowance recorded	$	103,154	207,658	—	95,048	—	100,712	—
With allowance recorded
Investment properties	$	120,684	121,771	3,757	152,469	2,070	136,574	992
1-4 family properties	93,058		93,916	12,782	103,152	1,577	95,931	763
Land acquisition	48,676		48,780	4,931	130,032	846	86,284	374
Total commercial real estate	262,418		264,467	21,470	385,653	4,493	318,789	2,129
Commercial, financial and agricultural	80,669		80,834	14,666	100,319	1,261	94,848	503
Owner-occupied	80,850		81,007	3,943	82,376	1,400	78,791	670
Small business	9,532		9,532	444	8,034	112	9,027	97
Total commercial and industrial	171,051		171,373	19,053	190,729	2,773	182,666	1,270
Home equity lines	3,573		3,573	85	2,974	32	3,342	32
Consumer mortgages	39,781		39,781	779	41,265	541	39,940	471
Credit cards	—		—	—	—	—	—	—
Other retail	5,517		5,517	97	4,753	141	5,275	85
Total retail	48,871		48,871	961	48,992	714	48,557	588
Total impaired loans with allowance recorded	$	482,340	484,711	41,484	625,374	7,980	550,012	3,987
Total impaired loans
Investment properties	$	154,748	167,122	3,757	173,309	2,070	164,065	992
1-4 family properties	97,094		115,122	12,782	110,053	1,577	101,150	763
Land acquisition	79,572		143,679	4,931	162,020	846	120,880	374
Total commercial real estate	331,414		425,923	21,470	445,382	4,493	386,095	2,129
Commercial, financial and agricultural	90,911		101,130	14,666	111,802	1,261	104,894	503
Owner-occupied	102,456		104,386	3,943	104,941	1,400	100,262	670
Small business	9,532		9,532	444	8,034	112	9,027	97
Total commercial and industrial	202,899		215,048	19,053	224,777	2,773	214,183	1,270
Home equity lines	3,573		3,573	85	2,974	32	3,342	32
Consumer mortgages	42,091		42,308	779	42,536	541	41,829	471
Credit cards	—		—	—	—	—	—	—
Other retail	5,517		5,517	97	4,753	141	5,275	85
Total retail	51,181		51,398	961	50,263	714	50,446	588
Total impaired loans	$	585,494	692,369	41,484	720,422	7,980	650,724	3,987



Impaired Loans (including accruing TDRs)
	December 31, 2013				Year Ended December 31, 2013
(in thousands)	Recorded Investment		Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
With no related allowance recorded
Investment properties	$	14,218	15,820	—	18,046	—
1-4 family properties	9,679		29,741	—	23,879	—
Land acquisition	30,595		78,470	—	41,007	—
Total commercial real estate	54,492		124,031	—	82,932	—
Commercial, financial and agricultural	13,490		22,312	—	15,355	—
Owner-occupied	24,839		32,626	—	22,556	—
Small business	—		—	—	—	—
Total commercial and industrial	38,329		54,938	—	37,911	—
Home equity lines	—		—	—	33	—
Consumer mortgages	1,180		2,840	—	1,487	—
Credit cards	—		—	—	—	—
Other retail	—		—	—	4	—
Total retail	1,180		2,840	—	1,524	—
Total impaired loans with no related allowance recorded	$	94,001	181,809	—	122,367	—
With allowance recorded
Investment properties	$	186,058	193,765	8,863	226,987	5,062
1-4 family properties	115,063		117,410	11,126	115,614	3,464
Land acquisition	183,029		202,048	26,789	191,807	2,931
Total commercial real estate	484,150		513,223	46,778	534,408	11,457
Commercial, financial and agricultural	112,291		117,049	15,364	126,242	3,534
Owner-occupied	86,661		92,529	4,327	106,186	3,590
Small business	5,669		5,669	336	4,132	162
Total commercial and industrial	204,621		215,247	20,027	236,560	7,286
Home equity lines	2,750		2,750	116	4,668	176
Consumer mortgages	44,019		44,019	967	48,674	1,910
Credit cards	—		—	—	—	—
Other retail	7,013		7,013	109	5,555	285
Total retail	53,782		53,782	1,192	58,897	2,371
Total impaired loans with allowance recorded	$	742,553	782,252	67,997	829,865	21,114
Total impaired loans
Investment properties	$	200,276	209,585	8,863	245,033	5,062
1-4 family properties	124,742		147,151	11,126	139,493	3,464
Land acquisition	213,624		280,518	26,789	232,814	2,931
Total commercial real estate	538,642		637,254	46,778	617,340	11,457
Commercial, financial and agricultural	125,781		139,361	15,364	141,597	3,534
Owner-occupied	111,500		125,155	4,327	128,742	3,590
Small business	5,669		5,669	336	4,132	162
Total commercial and industrial	242,950		270,185	20,027	274,471	7,286
Home equity lines	2,750		2,750	116	4,701	176
Consumer mortgages	45,199		46,859	967	50,161	1,910
Credit cards	—		—	—	—	—
Other retail	7,013		7,013	109	5,559	285
Total retail	54,962		56,622	1,192	60,421	2,371
Total impaired loans	$	836,554	964,061	67,997	952,232	21,114

The average recorded investment in impaired loans was $720.4 million and $650.7 million for the six and three months ended June 30, 2014, respectively. Excluding accruing TDRs, there was no interest income recognized for the investment in impaired loans for the six and three months ended June 30, 2014 and 2013. Interest income recognized for accruing TDRs was $8.0 million and $4.0 million, respectively, for the six and three months ended June 30, 2014 and $10.8 million and $5.4 million, respectively, for the six and three months ended June 30, 2013 . At June 30, 2014 and December 31, 2013, all impaired loans other than $444.1 million and $556.4 million, respectively, of accruing TDRs, were on non-accrual status.

Concessions provided in a TDR are primarily in the form of providing a below market interest rate given the borrower's credit risk, a period of time generally less than one year with a reduction of required principal and/or interest payments (e.g., interest only for a period of time), or extension of the maturity of the loan generally for less than one year. Insignificant periods of reduction of principal and/or interest payments, or one time deferrals of 3 months or less, are generally not considered to be financial concessions.

The following tables represent, by concession type, the post-modification balance for loans modified or renewed during the six and three months ended June 30, 2014 and 2013 that were reported as accruing or non-accruing TDRs.



TDRs by Concession Type
	Six Months Ended June 30, 2014
(in thousands, except contract data)	Number of Contracts	Principal Forgiveness		Below Market Interest Rate	Term Extensions and/or Other Concessions	Total
Investment properties	6	$	—	7,143	1,339	8,482
1-4 family properties	18	—		1,036	1,511	2,547
Land acquisition	11	—		4,282	2,042	6,324
Total commercial real estate	35	—		12,461	4,892	17,353
Commercial, financial and agricultural	13	—		4,070	9,242	13,312
Owner-occupied	9	—		19,315	14,151	33,466
Small business	46	—		1,746	5,071	6,817
Total commercial and industrial	68	—		25,131	28,464	53,595
Home equity lines	6	—		728	451	1,179
Consumer mortgages	8	—		1,753	103	1,856
Credit cards	—	—		—	—	—
Other retail	10	—		442	235	677
Total retail	24	—		2,923	789	3,712
Total TDRs	127	$	—	40,515	34,145	74,660	⁽¹	⁾

	Three Months Ended June 30, 2014
(in thousands, except contract data)	Number of Contracts	Principal Forgiveness		Below Market Interest Rate	Term Extensions and/or Other Concessions	Total
Investment properties	3	$	—	—	1,019	1,019
1-4 family properties	14	—		903	425	1,328
Land acquisition	10	—		4,282	1,508	5,790
Total commercial real estate	27	—		5,185	2,952	8,137
Commercial, financial and agricultural	6	—		2,279	7,037	9,316
Owner-occupied	2	—		16,827	11,333	28,160
Small business	23	—		1,450	1,755	3,205
Total commercial and industrial	31	—		20,556	20,125	40,681
Home equity lines	4	—		487	405	892
Consumer mortgages	7	—		1,652	103	1,755
Credit cards	—	—		—		—
Other retail	6	—		442	118	560
Total retail	17	—		2,581	626	3,207
Total TDRs	75	$	—	28,322	23,703	52,025	⁽²	⁾

⁽¹⁾No net charge-offs were recorded during the six months ended June 30, 2014 upon restructuring of these loans.

⁽²⁾No net charge-offs were recorded during the three months ended June 30, 2014 upon restructuring of these loans.



TDRs by Concession Type
	Six Months Ended June 30, 2013
(in thousands, except contract data)	Number of Contracts	Principal Forgiveness		Below Market Interest Rate	Term Extensions and/or Other Concessions	Total
Investment properties	31	$	—	47,152	4,372	51,524
1-4 family properties	58	424		24,031	6,496	30,951
Land acquisition	16	74		5,332	7,231	12,637
Total commercial real estate	105	498		76,515	18,099	95,112
Commercial, financial and agricultural	57	183		17,907	8,990	27,080
Owner-occupied	27	—		15,620	14,335	29,955
Small business	24	—		917	1,608	2,525
Total commercial and industrial	108	183		34,444	24,933	59,560
Home equity lines	1	—		—	80	80
Consumer mortgages	84	—		7,124	3,038	10,162
Credit cards	—	—		—	—	—
Other retail	38	—		460	1,028	1,488
Total retail	123	—		7,584	4,146	11,730
Total TDRs	336	$	681	118,543	47,178	166,402	⁽¹	⁾

	Three Months Ended June 30, 2013
(in thousands, except contract data)	Number of Contracts	Principal Forgiveness		Below Market Interest Rate	Term Extensions and/or Other Concessions	Total
Investment properties	17	$	—	31,375	2,258	33,633
1-4 family properties	21	—		17,067	2,312	19,379
Land acquisition	6	—		1,353	6,902	8,255
Total commercial real estate	44	—		49,795	11,472	61,267
Commercial, financial and agricultural	30	—		9,430	7,253	16,683
Owner-occupied	10	—		10,337	11,881	22,218
Small business	11	—		30	934	964
Total commercial and industrial	51	—		19,797	20,068	39,865
Home equity lines	—	—		—	—	—
Consumer mortgages	38	—		2,204	435	2,639
Credit cards	—	—		—	—	—
Other retail	14	—		88	362	450
Total retail	52	—		2,292	797	3,089
Total TDRs	147	$	—	71,884	32,337	104,221	⁽²	⁾

⁽¹⁾Net charge-offs of $53 thousand were recorded during the six months ended June 30, 2013 upon restructuring of these loans.

⁽²⁾No net charge-offs were recorded during the three months ended June 30, 2013 upon restructuring of these loans.

The following table presents TDRs that defaulted in the periods indicated and which were modified or renewed in a TDR within 12 months of the default date.



Troubled Debt Restructurings Entered Into That Subsequently Defaulted^*During
	Six Months Ended June 30, 2014			Three Months Ended June 30, 2014
(in thousands, except contract data)	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
Investment properties	1	$	186	—	$	—
1-4 family properties	3	1,018		3	1,018
Land acquisition	1	428		1	428
Total commercial real estate	5	1,632		4	1,446
Commercial, financial and agricultural	2	1,378		1	856
Owner-occupied	—	—		—	—
Small business	—	—		—	—
Total commercial and industrial	2	1,378		1	856
Home equity lines	—	—		—	—
Consumer mortgages	1	70		1	70
Credit cards	—	—		—	—
Other retail	—	—		—	—
Total retail	1	70		1	70
Total TDRs	8	$	3,080	6	$	2,372

^*Default is defined as the earlier of the troubled debt restructuring being placed on non-accrual status or reaching 90 days past due with respect to principal and/or interest payments.



Troubled Debt Restructurings Entered Into That Subsequently Defaulted^* During
	Six Months Ended June 30, 2013			Three Months Ended June 30, 2013
(in thousands, except contract data)	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
Investment properties	2	$	4,519	—	$	—
1-4 family properties	8	10,754		6	1,809
Land acquisition	1	126		1	125
Total commercial real estate	11	15,399		7	1,934
Commercial, financial and agricultural	2	389		1	119
Owner-occupied	2	924		1	68
Small business	1	20		1	20
Total commercial and industrial	5	1,333		3	207
Home equity lines	—	—		—	—
Consumer mortgages	13	978		3	420
Credit cards	—	—		—	—
Other retail	1	195		—	—
Total retail	14	1,173		3	420
Total TDRs	30	$	17,905	13	$	2,561

^*Default is defined as the earlier of the troubled debt restructuring being placed on non-accrual status or reaching 90 days past due with respect to principal and/or interest payments.

If, at the time a loan was designated as a TDR, the loan was not already impaired, the measurement of impairment that resulted from the TDR designation changes from a general pool-level reserve to a specific loan measurement of impairment in accordance with ASC 310-10-35. Generally, the change in the allowance for loan losses resulting from such TDR designation is not significant. At June 30, 2014, the allowance for loan losses allocated to accruing TDRs totaling $444.1 million was $24.3 million compared to accruing TDRs of $556.4 million with an allocated allowance for loan losses of $27.7 million at December 31, 2013. Non-accrual, non-homogeneous loans (commercial-type impaired loans greater than $1 million) that are designated as TDRs, are individually measured for the amount of impairment, if any, both before and after the TDR designation.