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Loans and Allowance for Loan Losses | 3 Months Ended
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Mar. 31, 2023
Receivables [Abstract] |
Loans and Allowance for Loan Losses | Note 3 - Loans and Allowance for Loan Losses Aging and Non-Accrual Analysis The following tables provide a summary of current, accruing past due, and non-accrual loans by portfolio class as of March 31, 2023 and December 31, 2022.
| March 31, 2023 |
(in thousands) | Current |  | Accruing 30-89 Days Past Due |  | Accruing 90 Days or Greater Past Due |  | Total Accruing Past Due |  | Non-accrual with an ALL |  | Non-accrual without an ALL |  | Total |
Commercial, financial and agricultural | $ | 14,095,704 |  |  | $ | 9,723 |  |  | $ | 1,775 |  |  | $ | 11,498 |  |  | $ | 78,792 |  |  | $ | 15,404 |  |  | $ | 14,201,398 |  |
Owner-occupied | 8,369,684 |  |  | 3,455 |  |  | 48 |  |  | 3,503 |  |  | 25,591 |  |  | — |  |  | 8,398,778 |  |
Total commercial and industrial | 22,465,388 |  |  | 13,178 |  |  | 1,823 |  |  | 15,001 |  |  | 104,383 |  |  | 15,404 |  |  | 22,600,176 |  |
Investment properties | 11,971,387 |  |  | 1,830 |  |  | — |  |  | 1,830 |  |  | 1,935 |  |  | 1,678 |  |  | 11,976,830 |  |
1-4 family properties | 592,680 |  |  | 455 |  |  | — |  |  | 455 |  |  | 2,621 |  |  | 894 |  |  | 596,650 |  |
Land and development | 422,055 |  |  | 67 |  |  | — |  |  | 67 |  |  | 1,153 |  |  | — |  |  | 423,275 |  |
Total commercial real estate | 12,986,122 |  |  | 2,352 |  |  | — |  |  | 2,352 |  |  | 5,709 |  |  | 2,572 |  |  | 12,996,755 |  |
Consumer mortgages | 5,194,675 |  |  | 12,429 |  |  | — |  |  | 12,429 |  |  | 39,536 |  |  | — |  |  | 5,246,640 |  |
Home equity | 1,742,419 |  |  | 6,863 |  |  | 1 |  |  | 6,864 |  |  | 7,967 |  |  | — |  |  | 1,757,250 |  |
Credit cards | 181,091 |  |  | 1,799 |  |  | 1,705 |  |  | 3,504 |  |  | — |  |  | — |  |  | 184,595 |  |
Other consumer loans | 1,237,731 |  |  | 14,903 |  |  | — |  |  | 14,903 |  |  | 6,857 |  |  | 32 |  |  | 1,259,523 |  |
Total consumer | 8,355,916 |  |  | 35,994 |  |  | 1,706 |  |  | 37,700 |  |  | 54,360 |  |  | 32 |  |  | 8,448,008 |  |
Loans, net of deferred fees and costs | $ | 43,807,426 |  |  | $ | 51,524 |  |  | $ | 3,529 |  |  | $ | 55,053 |  |  | $ | 164,452 |  |  | $ | 18,008 |  |  | $ | 44,044,939 |  |
| December 31, 2022 |
(in thousands) | Current |  | Accruing 30-89 Days Past Due |  | Accruing 90 Days or Greater Past Due |  | Total Accruing Past Due |  | Non-accrual with an ALL |  | Non-accrual without an ALL |  | Total |
Commercial, financial and agricultural | $ | 13,798,639 |  |  | $ | 15,033 |  |  | $ | 1,437 |  |  | $ | 16,470 |  |  | $ | 48,008 |  |  | $ | 11,299 |  |  | $ | 13,874,416 |  |
Owner-occupied | 8,181,649 |  |  | 487 |  |  | — |  |  | 487 |  |  | 9,499 |  |  | 605 |  |  | 8,192,240 |  |
Total commercial and industrial | 21,980,288 |  |  | 15,520 |  |  | 1,437 |  |  | 16,957 |  |  | 57,507 |  |  | 11,904 |  |  | 22,066,656 |  |
Investment properties | 11,639,614 |  |  | 960 |  |  | — |  |  | 960 |  |  | 1,785 |  |  | 1,688 |  |  | 11,644,047 |  |
1-4 family properties | 613,049 |  |  | 762 |  |  | — |  |  | 762 |  |  | 2,172 |  |  | 950 |  |  | 616,933 |  |
Land and development | 388,098 |  |  | 77 |  |  | — |  |  | 77 |  |  | 1,158 |  |  | — |  |  | 389,333 |  |
Total commercial real estate | 12,640,761 |  |  | 1,799 |  |  | — |  |  | 1,799 |  |  | 5,115 |  |  | 2,638 |  |  | 12,650,313 |  |
Consumer mortgages | 5,163,417 |  |  | 13,969 |  |  | 210 |  |  | 14,179 |  |  | 36,847 |  |  | — |  |  | 5,214,443 |  |
Home equity | 1,742,412 |  |  | 7,795 |  |  | 1 |  |  | 7,796 |  |  | 6,830 |  |  | — |  |  | 1,757,038 |  |
Credit cards | 200,047 |  |  | 1,843 |  |  | 1,722 |  |  | 3,565 |  |  | — |  |  | — |  |  | 203,612 |  |
Other consumer loans | 1,795,799 |  |  | 21,269 |  |  | 3 |  |  | 21,272 |  |  | 7,220 |  |  | — |  |  | 1,824,291 |  |
Total consumer | 8,901,675 |  |  | 44,876 |  |  | 1,936 |  |  | 46,812 |  |  | 50,897 |  |  | — |  |  | 8,999,384 |  |
Loans, net of deferred fees and costs | $ | 43,522,724 |  |  | $ | 62,195 |  |  | $ | 3,373 |  |  | $ | 65,568 |  |  | $ | 113,519 |  |  | $ | 14,542 |  |  | $ | 43,716,353 |  |
Interest income on non-accrual loans outstanding that would have been recorded if the loans had been current and performing in accordance with their original terms was $3.3 million and $3.4 million for the three months ended March 31, 2023 and 2022, respectively. Of the interest income recognized during the three months ended March 31, 2023 and 2022, cash-basis interest income was $1.7 million and $554 thousand, respectively. Pledged Loans Loans with carrying values of $18.61 billion and $16.09 billion, respectively, were pledged as collateral for borrowings and capacity at March 31, 2023 and December 31, 2022, respectively, to the FHLB and Federal Reserve Bank. Portfolio Segment Risk Factors The risk characteristics and collateral information of each portfolio segment are as follows: Commercial and Industrial Loans - The C&I loan portfolio is comprised of general middle market and commercial banking clients across a diverse set of industries. In accordance with Synovus' lending policy, each loan undergoes a detailed underwriting process, which incorporates uniform underwriting standards and oversight in proportion to the size and complexity of the lending relationship. These loans are secured by collateral such as business equipment, inventory, and real estate. Credit decisions on loans in the C&I portfolio are based on cash flow from the operations of the business as the primary source of repayment of the debt, with underlying real estate or other collateral being the secondary source of repayment. Commercial Real Estate Loans - CRE loans primarily consist of income-producing investment properties loans. Additionally, CRE loans include 1-4 family properties loans as well as land and development loans. Investment properties loans consist of construction and mortgage loans for income-producing properties and are primarily made to finance multi-family properties, hotels, office buildings (medical and non-medical), shopping centers, warehouses and other commercial development properties. 1-4 family properties loans include construction loans to homebuilders and commercial mortgage loans related to 1-4 family rental properties and are almost always secured by the underlying property being financed by such loans. These properties are primarily located in the markets served by Synovus. Land and development loans include commercial and residential development as well as land acquisition loans and are secured by land held for future development, typically in excess of one year. Properties securing these loans are substantially within markets served by Synovus, and our preference is to obtain some level of recourse from project sponsors. Loans in this portfolio are underwritten based on the LTV of the collateral and the capacity of the guarantor(s). Consumer Loans - The consumer loan portfolio consists of a wide variety of loan products offered through Synovus' banking network, including first and second residential mortgages, home equity, and consumer credit card loans, as well as home improvement loans, student, personal, and auto loans from third-party lending ("other consumer loans"). Together, consumer mortgages and home equity comprise the majority of Synovus' consumer loans and are secured by first and second liens on residential real estate primarily located in the markets served by Synovus. The primary source of repayment for all consumer loans is generally the personal income of the borrower(s). Credit Quality Indicators The credit quality of the loan portfolio is reviewed and updated no less frequently than annually using the standard asset classification system utilized by the federal banking agencies. These classifications are divided into three groups: Not Criticized (Pass), Special Mention, and Classified or Adverse rating (Substandard, Doubtful, and Loss) and are defined as follows: Pass - loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell in a timely manner, of any underlying collateral. Special Mention - loans which have potential weaknesses that deserve management's close attention. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant an adverse classification. Substandard - loans which are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans with this classification are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful - loans which have all the weaknesses inherent in loans categorized as Substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently known facts, conditions, and values. Loss - loans which are considered by management to be uncollectible and of such little value that their continuance on the institution's books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. Synovus fully reserves for any loans rated as Loss. In the following tables, consumer loans are generally assigned a risk grade similar to the classifications described above; however, upon reaching 90 days and 120 days past due, they are generally downgraded to Substandard and Loss, respectively, in accordance with the FFIEC Retail Credit Classification Policy. Additionally, in accordance with Interagency Supervisory Guidance, the risk grade classifications of consumer loans (consumer mortgages and home equity) secured by junior liens on 1-4 family residential properties also consider available information on the payment status of any associated senior liens with other financial institutions. The following table summarizes each loan portfolio class by risk grade and origination year as of March 31, 2023 as required under CECL. In addition, gross charge-offs by loan portfolio class and origination year as of March 31, 2023 are included below as a result of the adoption of ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosure.
| March 31, 2023
| Term Loans Amortized Cost Basis by Origination Year |  | Revolving Loans |  |
(in thousands) | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Amortized Cost Basis |  | Converted to Term Loans |  | Total
Commercial, financial and agricultural |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 209,699 |  |  | $ | 1,263,951 |  |  | $ | 1,752,589 |  |  | $ | 973,723 |  |  | $ | 780,905 |  |  | $ | 1,480,991 |  |  | $ | 7,182,461 |  |  | $ | 53,212 |  |  | $ | 13,697,531 |
Special Mention | 1,135 |  |  | 1,174 |  |  | 2,453 |  |  | 1,705 |  |  | 4,580 |  |  | 17,890 |  |  | 137,617 |  |  | — |  |  | 166,554 |
Substandard(1) | 16,893 |  |  | 18,271 |  |  | 22,900 |  |  | 40,625 |  |  | 39,241 |  |  | 26,678 |  |  | 170,153 |  |  | 1,976 |  |  | 336,737 |
Loss(2)(3) | — |  |  | 41 |  |  | 34 |  |  | — |  |  | — |  |  | 355 |  |  | 146 |  |  | — |  |  | 576 |
Total commercial, financial and agricultural | 227,727 |  |  | 1,283,437 |  |  | 1,777,976 |  |  | 1,016,053 |  |  | 824,726 |  |  | 1,525,914 |  |  | 7,490,377 |  |  | 55,188 |  |  | 14,201,398 |
Current YTD Period: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross charge-offs | — |  |  | 595 |  |  | 1,525 |  |  | 600 |  |  | 137 |  |  | 308 |  |  | 4,152 |  |  | 203 |  |  | 7,520 |
Owner-occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 290,480 |  |  | 1,574,203 |  |  | 1,674,386 |  |  | 1,117,073 |  |  | 876,567 |  |  | 1,673,967 |  |  | 870,423 |  |  | — |  |  | 8,077,099 |
Special Mention | 637 |  |  | 1,740 |  |  | 1,002 |  |  | 24,249 |  |  | 7,196 |  |  | 69,869 |  |  | 17,766 |  |  | — |  |  | 122,459 |
Substandard(1) | 148 |  |  | 23,273 |  |  | 15,989 |  |  | 62,754 |  |  | 15,325 |  |  | 67,223 |  |  | 14,082 |  |  | — |  |  | 198,794 |
Loss(3) | — |  |  | — |  |  | 245 |  |  | — |  |  | — |  |  | 181 |  |  | — |  |  | — |  |  | 426 |
Total owner-occupied | 291,265 |  |  | 1,599,216 |  |  | 1,691,622 |  |  | 1,204,076 |  |  | 899,088 |  |  | 1,811,240 |  |  | 902,271 |  |  | — |  |  | 8,398,778 |
Current YTD Period: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross charge-offs | — |  |  | — |  |  | 353 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 353 |
Total commercial and industrial | 518,992 |  |  | 2,882,653 |  |  | 3,469,598 |  |  | 2,220,129 |  |  | 1,723,814 |  |  | 3,337,154 |  |  | 8,392,648 |  |  | 55,188 |  |  | 22,600,176 |
Current YTD Period: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross charge-offs | $ | — |  |  | $ | 595 |  |  | $ | 1,878 |  |  | $ | 600 |  |  | $ | 137 |  |  | $ | 308 |  |  | $ | 4,152 |  |  | $ | 203 |  |  | $ | 7,873 |
Investment properties |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 197,011 |  |  | 2,796,377 |  |  | 3,401,131 |  |  | 1,487,377 |  |  | 1,207,607 |  |  | 2,205,565 |  |  | 539,903 |  |  | — |  |  | 11,834,971 |
Special Mention | 551 |  |  | 1,198 |  |  | 1,514 |  |  | — |  |  | 14,446 |  |  | 30,961 |  |  | — |  |  | — |  |  | 48,670 |
Substandard(1) | 3,219 |  |  | 2,711 |  |  | 1,447 |  |  | 174 |  |  | 1,678 |  |  | 62,924 |  |  | 20,929 |  |  | — |  |  | 93,082 |
Loss(3) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 107 |  |  | — |  |  | — |  |  | 107 |
Total investment properties | 200,781 |  |  | 2,800,286 |  |  | 3,404,092 |  |  | 1,487,551 |  |  | 1,223,731 |  |  | 2,299,557 |  |  | 560,832 |  |  | — |  |  | 11,976,830 |
Current YTD Period: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross charge-offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 family properties |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 40,898 |  |  | 219,509 |  |  | 141,305 |  |  | 40,833 |  |  | 33,065 |  |  | 73,898 |  |  | 40,670 |  |  | — |  |  | 590,178 |
Special Mention | — |  |  | — |  |  | — |  |  | 195 |  |  | — |  |  | 192 |  |  | — |  |  | — |  |  | 387 |
Substandard(1) | 1,301 |  |  | 1,289 |  |  | 985 |  |  | 316 |  |  | 685 |  |  | 1,464 |  |  | 45 |  |  | — |  |  | 6,085 |
Total 1-4 family properties | 42,199 |  |  | 220,798 |  |  | 142,290 |  |  | 41,344 |  |  | 33,750 |  |  | 75,554 |  |  | 40,715 |  |  | — |  |  | 596,650 |
Current YTD Period: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross charge-offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 19 |  |  | — |  |  | — |  |  | 19 |
| March 31, 2023
| Term Loans Amortized Cost Basis by Origination Year |  | Revolving Loans |  |
(in thousands) | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Amortized Cost Basis |  | Converted to Term Loans |  | Total
Land and development |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 52,110 |  |  | 107,318 |  |  | 78,137 |  |  | 21,631 |  |  | 34,780 |  |  | 85,463 |  |  | 8,314 |  |  | — |  |  | 387,753 |
Special Mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 30,688 |  |  | — |  |  | — |  |  | 30,688 |
Substandard(1) | 169 |  |  | 688 |  |  | 302 |  |  | 953 |  |  | 619 |  |  | 2,103 |  |  | — |  |  | — |  |  | 4,834 |
Total land and development | 52,279 |  |  | 108,006 |  |  | 78,439 |  |  | 22,584 |  |  | 35,399 |  |  | 118,254 |  |  | 8,314 |  |  | — |  |  | 423,275 |
Current YTD Period: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross charge-offs | — |  |  | — |  |  | — |  |  | 77 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 77 |
Total commercial real estate | 295,259 |  |  | 3,129,090 |  |  | 3,624,821 |  |  | 1,551,479 |  |  | 1,292,880 |  |  | 2,493,365 |  |  | 609,861 |  |  | — |  |  | 12,996,755 |
Current YTD Period: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross charge-offs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 77 |  |  | $ | — |  |  | $ | 19 |  |  | $ | — |  |  | $ | — |  |  | $ | 96 |
Consumer mortgages |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 164,007 |  |  | 854,860 |  |  | 1,142,028 |  |  | 1,314,831 |  |  | 447,533 |  |  | 1,269,573 |  |  | 33 |  |  | — |  |  | 5,192,865 |
Substandard(1) | — |  |  | 813 |  |  | 7,136 |  |  | 11,174 |  |  | 8,851 |  |  | 25,067 |  |  | — |  |  | — |  |  | 53,041 |
Loss(3) | — |  |  | — |  |  | — |  |  | — |  |  | 4 |  |  | 730 |  |  | — |  |  | — |  |  | 734 |
Total consumer mortgages | 164,007 |  |  | 855,673 |  |  | 1,149,164 |  |  | 1,326,005 |  |  | 456,388 |  |  | 1,295,370 |  |  | 33 |  |  | — |  |  | 5,246,640 |
Current YTD Period: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross charge-offs | — |  |  | 55 |  |  | 9 |  |  | 8 |  |  | 71 |  |  | 271 |  |  | — |  |  | — |  |  | 414 |
Home equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,232,884 |  |  | 511,633 |  |  | 1,744,517 |
Substandard(1) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 7,611 |  |  | 4,684 |  |  | 12,295 |
Loss(3) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 322 |  |  | 116 |  |  | 438 |
Total home equity | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,240,817 |  |  | 516,433 |  |  | 1,757,250 |
Current YTD Period: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross charge-offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 106 |  |  | — |  |  | 106 |
Credit cards |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 182,926 |  |  | — |  |  | 182,926 |
Substandard(1) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 567 |  |  | — |  |  | 567 |
Loss(2) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,102 |  |  | — |  |  | 1,102 |
Total credit cards | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 184,595 |  |  | — |  |  | 184,595 |
Current YTD Period: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross charge-offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,816 |  |  | — |  |  | 1,816 |
Other consumer loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 32,096 |  |  | 246,407 |  |  | 319,745 |  |  | 151,022 |  |  | 42,022 |  |  | 153,316 |  |  | 306,552 |  |  | — |  |  | 1,251,160 |
Substandard(1) | — |  |  | 1,499 |  |  | 3,623 |  |  | 1,505 |  |  | 697 |  |  | 829 |  |  | 138 |  |  | — |  |  | 8,291 |
Loss(2) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 28 |  |  | 44 |  |  | — |  |  | 72 |
Total other consumer loans | 32,096 |  |  | 247,906 |  |  | 323,368 |  |  | 152,527 |  |  | 42,719 |  |  | 154,173 |  |  | 306,734 |  |  | — |  |  | 1,259,523 |
Current YTD Period: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross charge-offs(4) | 31 |  |  | 1,250 |  |  | 10,898 |  |  | 1,194 |  |  | 496 |  |  | 600 |  |  | 561 |  |  | — |  |  | 15,030 |
Total consumer | 196,103 |  |  | 1,103,579 |  |  | 1,472,532 |  |  | 1,478,532 |  |  | 499,107 |  |  | 1,449,543 |  |  | 1,732,179 |  |  | 516,433 |  |  | 8,448,008 |
Current YTD Period: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross charge-offs | $ | 31 |  |  | $ | 1,305 |  |  | $ | 10,907 |  |  | $ | 1,202 |  |  | $ | 567 |  |  | $ | 871 |  |  | $ | 2,483 |  |  | $ | — |  |  | $ | 17,366 |
Loans, net of deferred fees and costs | $ | 1,010,354 |  |  | $ | 7,115,322 |  |  | $ | 8,566,951 |  |  | $ | 5,250,140 |  |  | $ | 3,515,801 |  |  | $ | 7,280,062 |  |  | $ | 10,734,688 |  |  | $ | 571,621 |  |  | $ | 44,044,939 |
Current YTD Period: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross charge-offs | $ | 31 |  |  | $ | 1,900 |  |  | $ | 12,785 |  |  | $ | 1,879 |  |  | $ | 704 |  |  | $ | 1,198 |  |  | $ | 6,635 |  |  | $ | 203 |  |  | $ | 25,335 |
(1) The majority of loans within Substandard risk grade are accruing loans at March 31, 2023. (2) Represent amounts that were 120 days past due. These credits are downgraded to the Loss category with an ALL equal to the full loan amount and are generally charged off upon reaching 181 days past due in accordance with the FFIEC Retail Credit Classification Policy. (3) Loans within Loss risk grade are on non-accrual status and have an ALL equal to the full loan amount. (4) Includes $6.6 million in gross charge-offs related to the transfer of third-party consumer loans to held for sale. The following table summarizes each loan portfolio class by risk grade and origination year as of December 31, 2022 as required under CECL.
| December 31, 2022
| Term Loans Amortized Cost Basis by Origination Year |  | Revolving Loans |  |
(in thousands) | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior |  | Amortized Cost Basis |  | Converted to Term Loans |  | Total
Commercial, financial and agricultural |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 1,276,814 |  |  | $ | 1,911,353 |  |  | $ | 1,009,230 |  |  | $ | 782,100 |  |  | $ | 536,001 |  |  | $ | 1,037,488 |  |  | $ | 6,862,070 |  |  | $ | 43,748 |  |  | $ | 13,458,804 |
Special Mention | 4,131 |  |  | 14,289 |  |  | 12,691 |  |  | 6,637 |  |  | 5,716 |  |  | 2,777 |  |  | 81,889 |  |  | 1,710 |  |  | 129,840 |
Substandard(1) | 13,751 |  |  | 17,780 |  |  | 38,943 |  |  | 42,773 |  |  | 18,405 |  |  | 21,418 |  |  | 131,422 |  |  | 1,003 |  |  | 285,495 |
Loss(2) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 277 |  |  | — |  |  | 277 |
Total commercial, financial and agricultural | 1,294,696 |  |  | 1,943,422 |  |  | 1,060,864 |  |  | 831,510 |  |  | 560,122 |  |  | 1,061,683 |  |  | 7,075,658 |  |  | 46,461 |  |  | 13,874,416 |
Owner-occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 1,537,016 |  |  | 1,675,524 |  |  | 1,137,889 |  |  | 909,525 |  |  | 664,734 |  |  | 1,103,500 |  |  | 866,920 |  |  | — |  |  | 7,895,108 |
Special Mention | 4,238 |  |  | 6,760 |  |  | 24,175 |  |  | 13,913 |  |  | 5,024 |  |  | 69,500 |  |  | — |  |  | — |  |  | 123,610 |
Substandard(1) | 19,437 |  |  | 13,381 |  |  | 63,925 |  |  | 7,415 |  |  | 51,364 |  |  | 17,755 |  |  | — |  |  | — |  |  | 173,277 |
Loss(3) | — |  |  | 245 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 245 |
Total owner-occupied | 1,560,691 |  |  | 1,695,910 |  |  | 1,225,989 |  |  | 930,853 |  |  | 721,122 |  |  | 1,190,755 |  |  | 866,920 |  |  | — |  |  | 8,192,240 |
Total commercial and industrial | 2,855,387 |  |  | 3,639,332 |  |  | 2,286,853 |  |  | 1,762,363 |  |  | 1,281,244 |  |  | 2,252,438 |  |  | 7,942,578 |  |  | 46,461 |  |  | 22,066,656 |
Investment properties |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 2,671,660 |  |  | 3,245,669 |  |  | 1,532,230 |  |  | 1,220,974 |  |  | 775,747 |  |  | 1,543,724 |  |  | 541,118 |  |  | — |  |  | 11,531,122 |
Special Mention | 2,379 |  |  | 1,550 |  |  | — |  |  | 14,570 |  |  | 5,908 |  |  | 2,388 |  |  | 146 |  |  | — |  |  | 26,941 |
Substandard(1) | 5,973 |  |  | 1,455 |  |  | 176 |  |  | 1,688 |  |  | 51,767 |  |  | 3,931 |  |  | 20,994 |  |  | — |  |  | 85,984 |
Total investment properties | 2,680,012 |  |  | 3,248,674 |  |  | 1,532,406 |  |  | 1,237,232 |  |  | 833,422 |  |  | 1,550,043 |  |  | 562,258 |  |  | — |  |  | 11,644,047 |
1-4 family properties |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 248,418 |  |  | 154,181 |  |  | 44,032 |  |  | 33,246 |  |  | 27,053 |  |  | 55,543 |  |  | 47,732 |  |  | — |  |  | 610,205 |
Special Mention | 1 |  |  | — |  |  | 752 |  |  | — |  |  | — |  |  | 297 |  |  | — |  |  | — |  |  | 1,050 |
Substandard(1) | 1,309 |  |  | 1,429 |  |  | 75 |  |  | 741 |  |  | 836 |  |  | 1,243 |  |  | 45 |  |  | — |  |  | 5,678 |
Total 1-4 family properties | 249,728 |  |  | 155,610 |  |  | 44,859 |  |  | 33,987 |  |  | 27,889 |  |  | 57,083 |  |  | 47,777 |  |  | — |  |  | 616,933 |
Land and development |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 119,801 |  |  | 84,055 |  |  | 21,984 |  |  | 39,484 |  |  | 18,600 |  |  | 64,854 |  |  | 5,078 |  |  | — |  |  | 353,856 |
Special Mention | — |  |  | — |  |  | 744 |  |  | — |  |  | 29,618 |  |  | 1,118 |  |  | — |  |  | — |  |  | 31,480 |
Substandard(1) | 699 |  |  | 325 |  |  | 220 |  |  | 627 |  |  | 472 |  |  | 1,654 |  |  | — |  |  | — |  |  | 3,997 |
Total land and development | 120,500 |  |  | 84,380 |  |  | 22,948 |  |  | 40,111 |  |  | 48,690 |  |  | 67,626 |  |  | 5,078 |  |  | — |  |  | 389,333 |
Total commercial real estate | 3,050,240 |  |  | 3,488,664 |  |  | 1,600,213 |  |  | 1,311,330 |  |  | 910,001 |  |  | 1,674,752 |  |  | 615,113 |  |  | — |  |  | 12,650,313 |
| December 31, 2022
| Term Loans Amortized Cost Basis by Origination Year |  | Revolving Loans |  |
(in thousands) | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior |  | Amortized Cost Basis |  | Converted to Term Loans |  | Total
Consumer mortgages |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 857,489 |  |  | $ | 1,188,652 |  |  | $ | 1,356,065 |  |  | $ | 458,441 |  |  | $ | 182,834 |  |  | $ | 1,118,686 |  |  | $ | 143 |  |  | $ | — |  |  | $ | 5,162,310 |
Substandard(1) | 1,153 |  |  | 6,452 |  |  | 8,519 |  |  | 9,442 |  |  | 6,167 |  |  | 19,662 |  |  | — |  |  | — |  |  | 51,395 |
Loss(3) | — |  |  | — |  |  | — |  |  | 4 |  |  | — |  |  | 734 |  |  | — |  |  | — |  |  | 738 |
Total consumer mortgages | 858,642 |  |  | 1,195,104 |  |  | 1,364,584 |  |  | 467,887 |  |  | 189,001 |  |  | 1,139,082 |  |  | 143 |  |  | — |  |  | 5,214,443 |
Home equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,241,201 |  |  | 504,272 |  |  | 1,745,473 |
Substandard(1) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,534 |  |  | 4,512 |  |  | 11,046 |
Loss(3) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 402 |  |  | 117 |  |  | 519 |
Total home equity | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,248,137 |  |  | 508,901 |  |  | 1,757,038 |
Credit cards |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 201,898 |  |  | — |  |  | 201,898 |
Substandard(1) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 617 |  |  | — |  |  | 617 |
Loss(2) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,097 |  |  | — |  |  | 1,097 |
Total credit cards | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 203,612 |  |  | — |  |  | 203,612 |
Other consumer loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 284,045 |  |  | 524,601 |  |  | 457,684 |  |  | 61,760 |  |  | 31,662 |  |  | 142,189 |  |  | 313,565 |  |  | — |  |  | 1,815,506 |
Substandard(1) | 1,417 |  |  | 3,810 |  |  | 1,648 |  |  | 712 |  |  | 163 |  |  | 888 |  |  | 139 |  |  | — |  |  | 8,777 |
Loss(2) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 8 |  |  | — |  |  | — |  |  | 8 |
Total other consumer loans | 285,462 |  |  | 528,411 |  |  | 459,332 |  |  | 62,472 |  |  | 31,825 |  |  | 143,085 |  |  | 313,704 |  |  | — |  |  | 1,824,291 |
Total consumer | 1,144,104 |  |  | 1,723,515 |  |  | 1,823,916 |  |  | 530,359 |  |  | 220,826 |  |  | 1,282,167 |  |  | 1,765,596 |  |  | 508,901 |  |  | 8,999,384 |
Loans, net of deferred fees and costs | $ | 7,049,731 |  |  | $ | 8,851,511 |  |  | $ | 5,710,982 |  |  | $ | 3,604,052 |  |  | $ | 2,412,071 |  |  | $ | 5,209,357 |  |  | $ | 10,323,287 |  |  | $ | 555,362 |  |  | $ | 43,716,353 |
(1) The majority of loans within Substandard risk grade are accruing loans at December 31, 2022. (2) Represent amounts that were 120 days past due. These credits are downgraded to the Loss category with an ALL equal to the full loan amount and are generally charged off upon reaching 181 days past due in accordance with the FFIEC Retail Credit Classification Policy. (3) Loans within Loss risk grade are on non-accrual status and have an ALL equal to the full loan amount. Collateral-Dependent Loans We classify a loan as collateral-dependent when our borrower is experiencing financial difficulty, and we expect repayment to be provided substantially through the operation or sale of collateral. Our commercial loans have collateral that is comprised of real estate and business assets. Our consumer loans have collateral that is substantially comprised of residential real estate. There were no significant changes in the extent to which collateral secures our collateral-dependent loans during the three months ended March 31, 2023. Rollforward of Allowance for Loan Losses The following tables detail the changes in the ALL by loan segment for the three months ended March 31, 2023 and 2022. During the three months ended March 31, 2023, Synovus charged-off $6.6 million in previously established reserves for credit losses associated with the transfer of $424.1 million in certain third-party consumer loans to held for sale as part of our overall balance sheet management strategy.
| As Of and For the Three Months Ended March 31, 2023
(in thousands) | Commercial & Industrial |  | Commercial Real Estate |  | Consumer |  | Total
Allowance for loan losses: |  |  |  |  |  |  |
Beginning balance at December 31, 2022 | $ | 161,550 |  |  | $ | 143,575 |  |  | $ | 138,299 |  |  | $ | 443,424 |
Charge-offs | (7,873) |  |  | (96) |  |  | (17,366) |  |  | (25,335) |
Recoveries | 3,476 |  |  | 284 |  |  | 3,025 |  |  | 6,785 |
Provision for (reversal of) loan losses | 1,535 |  |  | 16,629 |  |  | 13,972 |  |  | 32,136 |
Ending balance at March 31, 2023 | $ | 158,688 |  |  | $ | 160,392 |  |  | $ | 137,930 |  |  | $ | 457,010 |
| As Of and For the Three Months Ended March 31, 2022
(in thousands) | Commercial & Industrial |  | Commercial Real Estate |  | Consumer |  | Total
Allowance for loan losses: |  |  |  |  |  |  |
Beginning balance at December 31, 2021 | $ | 188,364 |  |  | $ | 97,760 |  |  | $ | 141,473 |  |  | $ | 427,597 |
Charge-offs | (13,763) |  |  | (2,456) |  |  | (8,928) |  |  | (25,147) |
Recoveries | 2,363 |  |  | 361 |  |  | 3,814 |  |  | 6,538 |
Provision for (reversal of) loan losses | 1,758 |  |  | (969) |  |  | 5,179 |  |  | 5,968 |
Ending balance at March 31, 2022 | $ | 178,722 |  |  | $ | 94,696 |  |  | $ | 141,538 |  |  | $ | 414,956 |
The ALL of $457.0 million and the reserve for unfunded commitments of $57.5 million, which is recorded in other liabilities, comprise the total ACL of $514.5 million at March 31, 2023. The ACL increased $13.6 million compared to the December 31, 2022 ACL of $500.9 million, which consisted of the ALL of $443.4 million and the reserve for unfunded commitments of $57.5 million. The ACL to loans coverage ratio was 1.17% at March 31, 2023, compared to 1.15% at December 31, 2022. The increase in the ACL from December 31, 2022 resulted primarily from a deterioration in economic factors, including an increase in the downside weighting of the multiple scenario model. The ACL is estimated using a two-year reasonable and supportable forecast period. To the extent the lives of the loans in the portfolio extend beyond the period for which a reasonable and supportable forecast can be made, the Company reverts on a straight-line basis back to the historical rates over a one-year period. Synovus utilizes multiple economic forecast scenarios sourced from a reputable third-party provider that are probability-weighted internally. The current scenarios include a consensus baseline forecast, an upside scenario reflecting an accelerated recovery, a downside scenario that reflects adverse economic conditions, and an additional adverse scenario that assumes consistent slow growth that is less optimistic than the baseline. At March 31, 2023, the unemployment rate is the input that most significantly impacts our estimate. The multi-scenario forecast used in our estimate includes a peak weighted average unemployment rate of 5.3% over the forecasted period at March 31, 2023, compared to 5.1% at December 31, 2022. Financial Difficulty Modifications (FDMs) When borrowers are experiencing financial difficulty, Synovus may make certain loan modifications as part of loss mitigation strategies to maximize expected payment. All loan modifications, renewals, and refinances to loans where borrowers are experiencing financial difficulty are evaluated for FDM classification. To be classified as an FDM, the modifications must be in the form of providing an interest rate reduction relative to the current interest rate, principal forgiveness, or an other-than-insignificant payment delay or extension of the maturity of the loan. An FDM is tracked for 12 months following the modification(s) granted. The effect of these modifications is already included in the allowance for credit losses because our use of a DCF model captures loan level changes including modified terms as part of the estimation process. The following table presents the amortized cost of FDM loans by loan portfolio class that were modified during the three months ended March 31, 2023.
| Three Months Ended March 31, 2023
(in thousands) | Interest Rate Reduction |  |  |  | Term Extension |  |  |  | Interest Rate Reduction and Term Extension |  |  |  | Total |  | Percentage of Total by Financing Class
Commercial, financial and agricultural | $ | 49 |  |  |  |  | $ | 16,321 |  |  |  |  | $ | 247 |  |  |  |  | $ | 16,617 |  |  | 0.1 | %
Owner-occupied | — |  |  |  |  | 1,468 |  |  |  |  | 41,263 |  |  |  |  | 42,731 |  |  | 0.5 |
Total commercial and industrial | 49 |  |  |  |  | 17,789 |  |  |  |  | 41,510 |  |  |  |  | 59,348 |  |  | 0.3 |
Investment properties | — |  |  |  |  | — |  |  |  |  | — |  |  |  |  | — |  |  | — |
1-4 family properties | — |  |  |  |  | 1,339 |  |  |  |  | — |  |  |  |  | 1,339 |  |  | 0.2 |
Land and development | — |  |  |  |  | — |  |  |  |  | — |  |  |  |  | — |  |  | — |
Total commercial real estate | — |  |  |  |  | 1,339 |  |  |  |  | — |  |  |  |  | 1,339 |  |  | — |
Consumer mortgages | 113 |  |  |  |  | — |  |  |  |  | — |  |  |  |  | 113 |  |  | — |
Home equity | — |  |  |  |  | 88 |  |  |  |  | 15 |  |  |  |  | 103 |  |  | — |
Credit cards | — |  |  |  |  | — |  |  |  |  | — |  |  |  |  | — |  |  | — |
Other consumer loans | 64 |  |  |  |  | 141 |  |  |  |  | 231 |  |  |  |  | 436 |  |  | — |
Total consumer | 177 |  |  |  |  | 229 |  |  |  |  | 246 |  |  |  |  | 652 |  |  | — |
Total FDMs | $ | 226 |  |  |  |  | $ | 19,357 |  |  |  |  | $ | 41,756 |  |  |  |  | $ | 61,339 |  |  | 0.1 | %
During the three months ended March 31, 2023, there were no FDMs that subsequently defaulted. Defaults are defined as the earlier of the FDM being placed on non-accrual status or reaching 90 days past due with respect to principal and/or interest payments. As of March 31, 2023, there were no commitments to lend a material amount of additional funds to any borrower whose loan was classified as an FDM. The following presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2023.
| Three Months Ended March 31, 2023
| Weighted Average Interest Rate Reduction |  | Weighted Average Term Extension (in months)
Commercial, financial and agricultural | 3.3 | % |  | 8
Owner-occupied | 1.7 |  |  | 9
1-4 family properties | — |  |  | 12
Consumer mortgages | 2.2 |  |  | 0
Home equity | 1.1 |  |  | 334
Other consumer loans | 3.5 |  |  | 68
Synovus monitors the performance of FDMs to understand the effectiveness of its modification efforts. The following table provides a summary of current, accruing past due, and non-accrual loans on an amortized cost basis by loan portfolio class that have been modified since January 1, 2023.
| As of March 31, 2023
(in thousands) | Current |  | Accruing 30-89 Days Past Due |  | Accruing 90 Days or Greater Past Due |  |  |  | Non-accrual (1) |  | Total
Commercial, financial and agricultural | $ | 16,028 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 589 |  |  | $ | 16,617 |
Owner-occupied | 42,731 |  |  | — |  |  | — |  |  |  |  | — |  |  | 42,731 |
Total commercial and industrial | 58,759 |  |  | — |  |  | — |  |  |  |  | 589 |  |  | 59,348 |
Investment properties | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |
1-4 family properties | 1,339 |  |  | — |  |  | — |  |  |  |  | — |  |  | 1,339 |
Land and development | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |
Total commercial real estate | 1,339 |  |  | — |  |  | — |  |  |  |  | — |  |  | 1,339 |
Consumer mortgages | — |  |  | — |  |  | — |  |  |  |  | 113 |  |  | 113 |
Home equity | 103 |  |  | — |  |  | — |  |  |  |  | — |  |  | 103 |
Credit cards | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |
Other consumer loans | 22 |  |  | — |  |  | — |  |  |  |  | 414 |  |  | 436 |
Total consumer | 125 |  |  | — |  |  | — |  |  |  |  | 527 |  |  | 652 |
Total FDMs | $ | 60,223 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 1,116 |  |  | $ | 61,339 |
(1) Loans were on non-accrual when modified and subsequently classified as FDMs. TDR Disclosures Prior to Adoption of ASU 2022-02 Prior to the adoption of ASU 2022-02, Synovus accounted for a modification to the contractual terms of a loan that resulted in granting concessions to a borrower experiencing financial difficulties as a TDR. The following tables present, by concession type, the post-modification balance for loans modified or renewed during the three months ended March 31, 2022 that were reported as accruing or non-accruing TDRs.
TDRs by Concession Type |  |
| Three Months Ended March 31, 2022 |
(in thousands, except contract data) | Number of Contracts |  | Below Market Interest Rate |  | Other Concessions(1) |  | Total |
Commercial, financial and agricultural | 33 |  |  | $ | 17,900 |  |  | $ | 541 |  |  | $ | 18,441 |  |
Owner-occupied | 13 |  |  | 6,104 |  |  | 3,857 |  |  | 9,961 |  |
Total commercial and industrial | 46 |  |  | 24,004 |  |  | 4,398 |  |  | 28,402 |  |
Investment properties | 3 |  |  | 589 |  |  | 6,610 |  |  | 7,199 |  |
1-4 family properties | 7 |  |  | 1,213 |  |  | — |  |  | 1,213 |  |
Land and development | 3 |  |  | 2,731 |  |  | — |  |  | 2,731 |  |
Total commercial real estate | 13 |  |  | 4,533 |  |  | 6,610 |  |  | 11,143 |  |
Consumer mortgages | 7 |  |  | 1,017 |  |  | 104 |  |  | 1,121 |  |
Home equity | 11 |  |  | 929 |  |  | — |  |  | 929 |  |
Other consumer loans | 2 |  |  | — |  |  | 48 |  |  | 48 |  |
Total consumer | 20 |  |  | 1,946 |  |  | 152 |  |  | 2,098 |  |
Total TDRs | 79 |  |  | $ | 30,483 |  |  | $ | 11,160 |  |  | $ | 41,643 |  | (2)
(1) Other concessions generally include term extensions, interest only payments for a period of time, or principal forgiveness, but there was no principal forgiveness for the three months ended March 31, 2022. (2) No net charge-offs were recorded during the three months ended March 31, 2022. For the three months ended March 31, 2022, there were no defaults on accruing TDRs restructured during the previous twelve months (defaults are defined as the earlier of the TDR being placed on non-accrual status or reaching 90 days past due with respect to principal and/or interest payments). As of December 31, 2022, there were no commitments to lend a material amount of additional funds to any borrower whose loan was classified as a TDR.

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