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Loans and Allowance for Loan Losses

9 Months Ended

Sep. 30, 2021

Loans and Allowance for Loan Losses [Abstract]

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 September 30, 2021 and December 31, 2020.


	September 30, 2021
(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	$	11,671,000	$	21,115	$	1,573	$	22,688	$	45,198	$	32,151	$	11,771,037
Owner-occupied	7,147,006		2,923		688		3,611		6,792		6,342		7,163,751
Total commercial and industrial	18,818,006		24,038		2,261		26,299		51,990		38,493		18,934,788
Investment properties	9,440,485		945		291		1,236		4,345		2,397		9,448,463
1-4 family properties	608,807		927		1,254		2,181		2,419		467		613,874
Land and development	475,911		62		14		76		1,936		—		477,923
Total commercial real estate	10,525,203		1,934		1,559		3,493		8,700		2,864		10,540,260
Consumer mortgages	5,065,749		5,162		47		5,209		37,040		501		5,108,499
Home equity lines	1,293,685		5,549		332		5,881		8,688		—		1,308,254
Credit cards	290,464		1,280		1,282		2,562		—		—		293,026
Other consumer loans	2,131,641		16,894		479		17,373		7,189		—		2,156,203
Total consumer	8,781,539		28,885		2,140		31,025		52,917		501		8,865,982
Loans, net of deferred fees and costs	$	38,124,748	$	54,857	$	5,960	$	60,817	$	113,607	$	41,858	$	38,341,030


	December 31, 2020
(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	$	12,321,514	$	10,256	$	996	$	11,252	$	55,527	$	21,859	$	12,410,152
Owner-occupied	7,087,992		1,913		92		2,005		20,019		—		7,110,016
Total commercial and industrial	19,409,506		12,169		1,088		13,257		75,546		21,859		19,520,168
Investment properties	9,075,843		2,751		154		2,905		24,631		—		9,103,379
1-4 family properties	621,492		3,548		36		3,584		2,383		1,236		628,695
Land and development	591,048		422		—		422		1,899		264		593,633
Total commercial real estate	10,288,383		6,721		190		6,911		28,913		1,500		10,325,707
Consumer mortgages	5,495,415		8,851		485		9,336		8,740		—		5,513,491
Home equity lines	1,521,575		4,006		—		4,006		12,145		—		1,537,726
Credit cards	276,778		2,363		1,877		4,240		—		—		281,018
Other consumer loans	1,062,899		9,122		477		9,599		2,376		—		1,074,874
Total consumer	8,356,667		24,342		2,839		27,181		23,261		—		8,407,109
Loans, net of deferred fees and costs	$	38,054,556	$	43,232	$	4,117	$	47,349	$	127,720	$	23,359	$	38,252,984

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 $4.1 million and $4.3 million for the three months ended September 30, 2021 and 2020, respectively, and $10.1 million and $9.2 million for the nine months ended September 30, 2021 and 2020, respectively. Of the interest income recognized during the three months ended September 30, 2021 and 2020, cash-basis interest income was $454 thousand and $1.3 million, respectively. Cash-basis interest income was $1.6 million and $2.7 million for the nine months ended September 30, 2021 and 2020, respectively.

Pledged Loans

Loans with carrying values of $14.29 billion and $15.05 billion, respectively, were pledged as collateral for borrowings and capacity at September 30, 2021 and December 31, 2020, 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. Whether for real estate or non-real estate purpose, credit decisions on loans in the C&I portfolio are based on cash flow from the operations of the business as the primary source of repayment of the debt, with underlying real estate or other collateral being the secondary source of repayment. PPP loans, which are categorized as C&I loans, were $782.2 million at September 30, 2021 and are guaranteed by the SBA.

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

Consumer Loans - The consumer loan portfolio consists of a wide variety of loan products offered through Synovus' banking network including first and second residential mortgages, HELOCs, and credit card loans, as well as home improvement loans, student, personal, and auto loans from third-party lending ("other consumer loans"). Together, consumer mortgages and HELOCs 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 HELOCs) secured by junior liens on 1-4 family residential properties also consider available information on the payment status of any associated senior liens with other financial institutions.

The following tables summarize each loan portfolio class by risk grade and origination year as of September 30, 2021 and December 31, 2020 as required under CECL.


	September 30, 2021
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans
(in thousands)	2021		2020		2019		2018		2017		Prior		Amortized Cost Basis		Converted to Term Loans		Total
Commercial, financial and agricultural
Pass	$	2,138,319	$	1,487,509	$	1,029,770	$	688,243	$	495,111	$	1,022,111	$	4,456,088	$	44,065	$	11,361,216
Special Mention	3,019		22,126		14,454		7,994		3,416		2,118		85,126		422		138,675
Substandard(1)	12,311		58,283		43,888		10,648		21,137		36,784		71,188		984		255,223
Doubtful(2)	447		—		2,449		13,015		—		—		12		—		15,923
Total commercial, financial and agricultural	2,154,096		1,567,918		1,090,561		719,900		519,664		1,061,013		4,612,414		45,471		11,771,037
Owner-occupied
Pass	1,124,258		1,302,576		1,169,910		898,921		793,353		1,265,310		419,099		—		6,973,427
Special Mention	647		1,646		10,783		12,780		6,693		23,689		—		—		56,238
Substandard(1)	1,689		2,777		19,333		51,223		26,089		26,633		—		—		127,744
Doubtful(2)	—		—		—		6,342		—		—		—		—		6,342
Total owner-occupied	1,126,594		1,306,999		1,200,026		969,266		826,135		1,315,632		419,099		—		7,163,751
Total commercial and industrial	3,280,690		2,874,917		2,290,587		1,689,166		1,345,799		2,376,645		5,031,513		45,471		18,934,788
Investment properties
Pass	1,591,349		1,536,934		2,046,139		1,217,911		782,607		1,466,183		289,154		—		8,930,277
Special Mention	6,127		228		59,292		124,165		77,438		95,525		54,635		—		417,410
Substandard(1)	1,453		330		8,780		48,755		13,516		27,851		91		—		100,776
Total investment properties	1,598,929		1,537,492		2,114,211		1,390,831		873,561		1,589,559		343,880		—		9,448,463
1-4 family properties
Pass	226,200		109,045		56,027		50,133		59,219		68,597		32,504		—		601,725
Special Mention	195		210		—		—		—		243		—		—		648
Substandard(1)	1,600		—		832		4,996		917		2,643		513		—		11,501
Total 1-4 family properties	227,995		109,255		56,859		55,129		60,136		71,483		33,017		—		613,874


	September 30, 2021
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans
(in thousands)	2021		2020		2019		2018		2017		Prior		Amortized Cost Basis		Converted to Term Loans		Total
Land and development
Pass	80,340		50,844		105,188		66,822		61,539		64,609		36,134		—		465,476
Special Mention	—		815		1,926		839		17		343		—		—		3,940
Substandard(1)	—		963		60		3,196		825		3,463		—		—		8,507
Total land and development	80,340		52,622		107,174		70,857		62,381		68,415		36,134		—		477,923
Total commercial real estate	1,907,264		1,699,369		2,278,244		1,516,817		996,078		1,729,457		413,031		—		10,540,260
Consumer mortgages
Pass	938,232		1,660,740		646,572		257,873		445,631		1,104,999		655		—		5,054,702
Substandard(1)	527		3,663		4,796		12,501		5,747		26,342		—		—		53,576
Loss(3)	—		—		—		—		—		221		—		—		221
Total consumer mortgages	938,759		1,664,403		651,368		270,374		451,378		1,131,562		655		—		5,108,499
Home equity lines
Pass	—		—		—		—		—		—		1,222,184		70,330		1,292,514
Substandard(1)	—		—		—		—		—		—		8,843		5,749		14,592
Doubtful(2)	—		—		—		—		—		—		—		18		18
Loss(3)	—		—		—		—		—		—		989		141		1,130
Total home equity lines	—		—		—		—		—		—		1,232,016		76,238		1,308,254
Credit cards
Pass	—		—		—		—		—		—		291,744		—		291,744
Substandard(1)	—		—		—		—		—		—		469		—		469
Loss(4)	—		—		—		—		—		—		813		—		813
Total credit cards	—		—		—		—		—		—		293,026		—		293,026
Other consumer loans
Pass	599,241		801,239		153,525		58,391		83,428		108,650		343,651		—		2,148,125
Substandard(1)	368		825		1,936		1,438		2,412		901		176		—		8,056
Loss(4)	—		—		—		—		—		22		—		—		22
Total other consumer loans	599,609		802,064		155,461		59,829		85,840		109,573		343,827		—		2,156,203
Total consumer	1,538,368		2,466,467		806,829		330,203		537,218		1,241,135		1,869,524		76,238		8,865,982
Loans, net of deferred fees and costs	$	6,726,322	$	7,040,753	$	5,375,660	$	3,536,186	$	2,879,095	$	5,347,237	$	7,314,068	$	121,709	$	38,341,030

(1) The majority of loans within Substandard risk grade are accruing loans at September 30, 2021.

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

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

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


	December 31, 2020
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans
(in thousands)	2020		2019		2018		2017		2016		Prior		Amortized Cost Basis		Converted to Term Loans		Total
Commercial, financial and agricultural
Pass	$	3,819,048	$	1,333,460	$	847,283	$	582,612	$	551,413	$	633,871	$	4,102,751	$	49,762	$	11,920,200
Special Mention	63,307		40,618		12,723		22,070		1,665		5,545		60,741		489		207,158
Substandard(1)	28,698		36,618		24,867		36,072		12,808		35,172		84,498		514		259,247
Doubtful(2)	—		3,721		19,778		—		—		—		48		—		23,547
Total commercial, financial and agricultural	3,911,053		1,414,417		904,651		640,754		565,886		674,588		4,248,038		50,765		12,410,152
Owner-occupied
Pass	1,321,680		1,275,435		1,131,183		982,056		555,932		1,297,070		349,566		—		6,912,922
Special Mention	6,170		9,995		10,682		14,138		1,582		13,768		—		—		56,335
Substandard(1)	2,570		22,793		42,615		26,033		7,316		29,794		—		—		131,121
Doubtful(2)	—		—		9,638		—		—		—		—		—		9,638
Total owner-occupied	1,330,420		1,308,223		1,194,118		1,022,227		564,830		1,340,632		349,566		—		7,110,016
Total commercial and industrial	5,241,473		2,722,640		2,098,769		1,662,981		1,130,716		2,015,220		4,597,604		50,765		19,520,168
Investment properties
Pass	1,055,440		2,126,667		1,999,345		1,091,880		483,780		1,301,088		229,044		—		8,287,244
Special Mention	1,482		66,160		176,794		136,004		138,362		129,401		55,440		—		703,643
Substandard(1)	1,007		4,770		24,476		19,820		21,875		40,509		35		—		112,492
Total investment properties	1,057,929		2,197,597		2,200,615		1,247,704		644,017		1,470,998		284,519		—		9,103,379
1-4 family properties
Pass	197,320		95,145		70,267		88,454		38,729		97,374		27,657		—		614,946
Special Mention	402		—		508		109		786		118		—		—		1,923
Substandard(1)	1,527		653		4,312		1,141		554		2,299		1,340		—		11,826
Total 1-4 family properties	199,249		95,798		75,087		89,704		40,069		99,791		28,997		—		628,695
Land and development
Pass	84,985		173,302		83,734		92,911		12,249		76,380		53,250		—		576,811
Special Mention	857		1,995		2,866		282		—		1,332		636		—		7,968
Substandard(1)	1,229		425		4,664		915		136		1,485		—		—		8,854
Total land and development	87,071		175,722		91,264		94,108		12,385		79,197		53,886		—		593,633
Total commercial real estate	1,344,249		2,469,117		2,366,966		1,431,516		696,471		1,649,986		367,402		—		10,325,707


	December 31, 2020
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans
(in thousands)	2020		2019		2018		2017		2016		Prior		Amortized Cost Basis		Converted to Term Loans		Total
Consumer mortgages
Pass	1,871,512		874,769		425,711		678,255		685,810		965,382		1,040		—		5,502,479
Substandard(1)	33		961		748		889		866		7,224		—		—		10,721
Loss(3)	—		—		—		—		—		291		—		—		291
Total consumer mortgages	1,871,545		875,730		426,459		679,144		686,676		972,897		1,040		—		5,513,491
Home equity lines
Pass	—		—		—		—		—		—		1,429,755		90,832		1,520,587
Substandard(1)	—		—		—		—		—		—		9,698		5,996		15,694
Doubtful(2)	—		—		—		—		—		—		—		19		19
Loss(3)	—		—		—		—		—		—		1,283		143		1,426
Total home equity lines	—		—		—		—		—		—		1,440,736		96,990		1,537,726
Credit cards
Pass	—		—		—		—		—		—		279,142		—		279,142
Substandard(1)	—		—		—		—		—		—		595		—		595
Loss(4)	—		—		—		—		—		—		1,281		—		1,281
Total credit cards	—		—		—		—		—		—		281,018		—		281,018
Other consumer loans
Pass	252,160		190,820		89,187		100,459		80,365		61,040		297,637		—		1,071,668
Substandard(1)	19		762		262		1,195		121		585		227		—		3,171
Loss(4)	—		—		—		—		—		35		—		—		35
Total other consumer loans	252,179		191,582		89,449		101,654		80,486		61,660		297,864		—		1,074,874
Total consumer	2,123,724		1,067,312		515,908		780,798		767,162		1,034,557		2,020,658		96,990		8,407,109
Loans, net of deferred fees and costs	$	8,709,446	$	6,259,069	$	4,981,643	$	3,875,295	$	2,594,349	$	4,699,763	$	6,985,664	$	147,755	$	38,252,984

(1) The majority of loans within Substandard risk grade are accruing loans at December 31, 2020.

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

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

Collateral-Dependent Loans

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

There were no significant changes in the extent to which collateral secures our collateral-dependent loans during the three and nine months ended September 30, 2021.

Rollforward of Allowance for Loan Losses

The following tables detail the changes in the ALL by loan segment for the three and nine months ended September 30, 2021 and 2020.


	As Of and For the Three Months Ended September 30, 2021
(in thousands)	Commercial & Industrial		Commercial Real Estate		Consumer		Total
Allowance for loan losses:
Beginning balance at June 30, 2021	$	254,938	$	92,113	$	169,657	$	516,708
Charge-offs	(20,230)		(718)		(8,933)		(29,881)
Recoveries	1,760		4,535		3,070		9,365
(Reversal of) provision for loan losses	(5,961)		(4,278)		6,290		(3,949)
Ending balance at September 30, 2021	$	230,507	$	91,652	$	170,084	$	492,243

	As Of and For the Three Months Ended September 30, 2020
(in thousands)	Commercial & Industrial		Commercial Real Estate		Consumer		Total
Allowance for loan losses:
Beginning balance at June 30, 2020	$	229,915	$	171,526	$	187,207	$	588,648
Charge-offs	(19,367)		(6,878)		(9,101)		(35,346)
Recoveries	3,796		1,225		1,859		6,880
Provision for (reversal of) loan losses	46,256		(22,068)		19,430		43,618
Ending balance at September 30, 2020	$	260,600	$	143,805	$	199,395	$	603,800

	As Of and For the Nine Months Ended September 30, 2021
(in thousands)	Commercial & Industrial		Commercial Real Estate		Consumer		Total
Allowance for loan losses:
Beginning balance at December 31, 2020	$	229,555	$	130,742	$	245,439	$	605,736
Charge-offs	(48,374)		(14,877)		(22,808)		(86,059)
Recoveries	6,027		5,938		6,828		18,793
Provision for (reversal of) loan losses	43,299		(30,151)		(59,375)		(46,227)
Ending balance at September 30, 2021	$	230,507	$	91,652	$	170,084	$	492,243

	As Of and For the Nine Months Ended September 30, 2020
(in thousands)	Commercial & Industrial		Commercial Real Estate		Consumer		Total
Allowance for loan losses:
Beginning balance at December 31, 2019	$	145,782	$	67,430	$	68,190	$	281,402
Impact from adoption of ASC 326	(2,310)		(651)		85,955		82,994
Beginning balance, after adoption of ASC 326, at January 1, 2020	$	143,472	$	66,779	$	154,145	$	364,396
Charge-offs	(57,497)		(8,585)		(23,917)		(89,999)
Recoveries	8,798		2,160		6,468		17,426
Provision for loan losses	165,827		83,451		62,699		311,977
Ending balance at September 30, 2020	$	260,600	$	143,805	$	199,395	$	603,800

The ALL of $492.2 million and the reserve for unfunded commitments of $43.0 million, which is recorded in other liabilities, comprise the total ACL of $535.2 million at September 30, 2021. The ACL decreased $118.3 million from December 31, 2020, resulting in an ACL to loans coverage ratio of 1.40% at September 30, 2021.

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 and probability-weighted internally. The scenarios include a 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 September 30, 2021, economic scenario weights incorporated a 45% downside bias compared to 40% at June 30, 2021. The baseline outlook used in the September 30, 2021 estimate showed stable economic conditions with the unemployment rate at 4.6% by the end of 2021, compared to 4.5% used in the second quarter of 2021’s ACL estimate. The baseline economic scenario includes the impacts of enacted and certain proposed government spending measures.

Reversal of provision for credit losses includes the reversals of provisions for loan losses and unfunded commitments. The reversal of provision for credit losses of $7.9 million and $51.0 million for the three and nine months ended September 30, 2021, respectively, included net charge-offs of $20.5 million and $67.3 million, respectively. The reversal of provision for credit losses and related reduction in the ACL primarily resulted from the continued improvement in the credit outlook for the portfolio. This was partially offset by $10.0 million and $35.8 million in reserves added as a result of purchases of $453.3 million and $1.49 billion of third-party lending loans for the three and nine months ended September 30, 2021, respectively, as well as net growth in loans.

TDRs

Information about Synovus' TDRs is presented in the following tables. Synovus began entering into loan modifications with borrowers in response to the COVID-19 pandemic, some of which have not been classified as TDRs, and therefore are not included in the discussion below. See "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 - Summary of Significant Accounting Policies" in Synovus' 2020 Form 10-K for information on Synovus' loan modifications due to COVID-19. The following tables represent, by concession type, the post-modification balance for loans modified or renewed during the three and nine months ended September 30, 2021 and 2020 that were reported as accruing or non-accruing TDRs.


TDRs by Concession Type
	Three Months Ended September 30, 2021
(in thousands, except contract data)	Number of Contracts	Below Market Interest Rate		Other Concessions(1)		Total
Commercial, financial and agricultural	44	$	3,437	$	2,642	$	6,079
Owner-occupied	10	2,488		469		2,957
Total commercial and industrial	54	5,925		3,111		9,036
Investment properties	2	637		—		637
1-4 family properties	3	—		84		84
Land and development	2	636		17		653
Total commercial real estate	7	1,273		101		1,374
Consumer mortgages	8	1,167		477		1,644
Home equity lines	16	2,655		—		2,655
Other consumer loans	7	44		476		520
Total consumer	31	3,866		953		4,819
Total TDRs	92	$	11,064	$	4,165	$	15,229	(2)

	Three Months Ended September 30, 2020
(in thousands, except contract data)	Number of Contracts	Below Market Interest Rate		Other Concessions(1)		Total
Commercial, financial and agricultural	42	$	3,335	$	670	$	4,005
Owner-occupied	7	1,753		—		1,753
Total commercial and industrial	49	5,088		670		5,758
Investment properties	2	294		93		387
1-4 family properties	5	74		114		188
Land and development	1	40		—		40
Total commercial real estate	8	408		207		615
Consumer mortgages	3	496		23		519
Home equity lines	17	471		648		1,119
Other consumer loans	3	48		85		133
Total consumer	23	1,015		756		1,771
Total TDRs	80	$	6,511	$	1,633	$	8,144	(3)

(1) Other concessions generally include term extensions, interest only payments for a period of time, or principal forgiveness, but there was no principal forgiveness for the three months ending September 30, 2021 and 2020.

(2) No net charge-offs were recorded during the three months ended September 30, 2021.

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


	Nine Months Ended September 30, 2021
(in thousands, except contract data)	Number of Contracts	Below Market Interest Rate		Other Concessions(1)		Total
Commercial, financial and agricultural	102	$	8,440	$	6,379	$	14,819
Owner-occupied	20	4,897		867		5,764
Total commercial and industrial	122	13,337		7,246		20,583
Investment properties	8	3,040		—		3,040
1-4 family properties	10	621		123		744
Land and development	4	1,003		59		1,062
Total commercial real estate	22	4,664		182		4,846
Consumer mortgages	10	1,498		477		1,975
Home equity lines	43	4,142		258		4,400
Other consumer loans	93	360		5,340		5,700
Total consumer	146	6,000		6,075		12,075
Total TDRs	290	$	24,001	$	13,503	$	37,504	(2)

	Nine Months Ended September 30, 2020
(in thousands, except contract data)	Number of Contracts	Below Market Interest Rate		Other Concessions(1)		Total
Commercial, financial and agricultural	118	$	8,562	$	4,681	$	13,243
Owner-occupied	19	3,573		1,530		5,103
Total commercial and industrial	137	12,135		6,211		18,346
Investment properties	6	28,963		93		29,056
1-4 family properties	15	867		1,105		1,972
Land and development	3	581		—		581
Total commercial real estate	24	30,411		1,198		31,609
Consumer mortgages	19	1,568		2,589		4,157
Home equity lines	50	926		2,530		3,456
Other consumer loans	50	145		2,779		2,924
Total consumer	119	2,639		7,898		10,537
Total TDRs	280	$	45,185	$	15,307	$	60,492	(3)

(1) Other concessions generally include term extensions, interest only payments for a period of time, or principal forgiveness, but there was no principal forgiveness for the nine months ending September 30, 2021 and 2020.

(2) No net charge-offs were recorded during the nine months ended September 30, 2021.

(3) No net charge-offs were recorded during the nine months ended September 30, 2020.

For the three and nine months ended September 30, 2021 respectively, there were two defaults with a recorded investment of $536 thousand and seven defaults with a recorded investment of $708 thousand on accruing TDRs restructured during the previous twelve months (defaults are defined as the earlier of the TDR being placed on non-accrual status or reaching 90 days past due with respect to principal and/or interest payments) compared to one default with a recorded investment of $21 thousand and five defaults with a recorded investment of $666 thousand, respectively, for the three and nine months ended September 30, 2020. As of September 30, 2021 and December 31, 2020, there were no commitments to lend a material amount of additional funds to any client whose loan was classified as a TDR.