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Loans and Allowance for Loan Losses

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Loans and Allowance for Loan Losses

Note 3 - Loans and Allowance for Loan Losses

Aging and Non-Accrual Analysis

The following tables provide a summary of current, accruing past due, and non-accrual loans by portfolio class as of September 30, 2024 and December 31, 2023.

			September 30, 2024
(in thousands)			Current						Accruing 30-89 Days Past Due						Accruing 90 Days or Greater Past Due						Total Accruing Past Due						Non-accrual with an ALL						Non-accrual without an ALL						Total
Commercial, financial and agricultural			$	14,442,436					$	12,537					$	1,936					$	14,473					$	94,339					$	12,665					$	14,563,913
Owner-occupied			8,007,986						43,708						—						43,708						47,000						1,390						8,100,084
Total commercial and industrial(1)			22,450,422						56,245						1,936						58,181						141,339						14,055						22,663,997
Investment properties			11,260,803						2,865						610						3,475						80,729						1,542						11,346,549
1-4 family properties			524,304						820						162						982						2,695						149						528,130
Land and development			300,113						1,002						—						1,002						1,690						—						302,805
Total commercial real estate			12,085,220						4,687						772						5,459						85,114						1,691						12,177,484
Consumer mortgages			5,266,124						8,363						—						8,363						48,956						—						5,323,443
Home equity			1,782,849						10,600						—						10,600						15,837						—						1,809,286
Credit cards			178,182						1,589						1,615						3,204						—						—						181,386
Other consumer loans			947,684						11,386						36						11,422						5,972						—						965,078
Total consumer			8,174,839						31,938						1,651						33,589						70,765						—						8,279,193
Loans, net of deferred fees and costs(2)			$	42,710,481					$	92,870					$	4,359					$	97,229					$	297,218					$	15,746					$	43,120,674

                                                                                                                                                                                                                                                                                                                                                                        

			December 31, 2023
(in thousands)			Current						Accruing 30-89 Days Past Due						Accruing 90 Days or Greater Past Due						Total Accruing Past Due						Non-accrual with an ALL						Non-accrual without an ALL						Total
Commercial, financial and agricultural			$	14,355,414					$	12,264					$	1,797					$	14,061					$	66,400					$	23,470					$	14,459,345
Owner-occupied			8,041,573						6,056						149						6,205						70,784						20,586						8,139,148
Total commercial and industrial(1)			22,396,987						18,320						1,946						20,266						137,184						44,056						22,598,493
Investment properties			11,322,516						740						278						1,018						12,796						26,974						11,363,304
1-4 family properties			595,359						87						—						87						2,605						451						598,502
Land and development			353,477						671						—						671						804						—						354,952
Total commercial real estate			12,271,352						1,498						278						1,776						16,205						27,425						12,316,758
Consumer mortgages			5,359,153						6,462						—						6,462						46,108						—						5,411,723
Home equity			1,785,836						10,374						716						11,090						10,473						—						1,807,399
Credit cards			190,299						1,818						2,024						3,842						—						—						194,141
Other consumer loans			1,053,587						15,574						89						15,663						6,697						29						1,075,976
Total consumer			8,388,875						34,228						2,829						37,057						63,278						29						8,489,239
Loans, net of deferred fees and costs(2)			$	43,057,214					$	54,046					$	5,053					$	59,099					$	216,667					$	71,510					$	43,404,490

(1) Includes senior housing loans of $3.10 billion and $3.28 billion at September 30, 2024 and December 31, 2023, respectively, which are primarily classified as owner-occupied in accordance with our underwriting process.

(2) The amortized cost basis of loans, net of deferred fees and costs excludes accrued interest receivable of $221.9 million and $256.3 million at September 30, 2024 and December 31, 2023, respectively, which is presented as a component of other assets on the consolidated balance sheets.

Pledged Loans

Loans with carrying values of $24.80 billion and $24.31 billion, respectively, were pledged as collateral for borrowings and capacity at September 30, 2024 and December 31, 2023, respectively, to the FHLB and Federal Reserve Bank.

Portfolio Segment Risk Factors

The risk characteristics and collateral information of each portfolio segment are as follows:

Commercial and Industrial Loans - The C&I loan portfolio is comprised of general middle market and commercial banking clients across a diverse set of industries. In accordance with Synovus' lending policy, each loan undergoes a detailed underwriting process, which incorporates uniform underwriting standards and oversight in proportion to the size and complexity of the lending relationship. These loans are secured by collateral such as business equipment, inventory, and real estate. Credit decisions on loans in the C&I portfolio are based on cash flow from the operations of the business as the primary source of repayment of the debt, with underlying real estate or other collateral being the secondary source of repayment.

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

Consumer Loans - The consumer loan portfolio consists of a wide variety of loan products offered through Synovus' banking network, including first and second residential mortgages, home equity, and consumer credit card loans, as well as home improvement loans, student, and personal loans from third-party lending ("other consumer loans"). Together, consumer mortgages and home equity comprise the majority of Synovus' consumer loans and are secured by first and second liens on residential real estate primarily located in the markets served by Synovus. The primary source of repayment for all consumer loans is generally the personal income of the borrower(s).

Credit Quality Indicators

The credit quality of the loan portfolio is reviewed and updated no less frequently than annually using the standard asset classification system utilized by the federal banking agencies. These classifications are divided into three groups: Not Criticized (Pass), Special Mention, and Classified or Adverse rating (Substandard, Doubtful, and Loss) and are defined as follows:

Pass - loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell in a timely manner, of any underlying collateral.

Special Mention - loans which have potential weaknesses that deserve management's close attention. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant an adverse classification.

Substandard - loans which are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans with this classification are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful - loans which have all the weaknesses inherent in loans categorized as Substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently known facts, conditions, and values.

Loss - loans which are considered by management to be uncollectible and of such little value that their continuance on the institution's books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. Synovus fully reserves for any loans rated as Loss.

In the following tables, consumer loans are generally assigned a risk grade similar to the classifications described above; however, upon reaching 90 days and 120 days past due, they are generally downgraded to Substandard and Loss, respectively, in accordance with the FFIEC Retail Credit Classification Policy. Additionally, in accordance with Interagency Supervisory Guidance, the risk grade classifications of consumer loans (consumer mortgages and home equity) secured by junior liens on 1-4 family residential properties also consider available information on the payment status of any associated senior liens with other financial institutions.

The following table summarizes each loan portfolio class by risk grade and origination year as of September 30, 2024 and December 31, 2023 as required under CECL.

			September 30, 2024
			Term Loans Amortized Cost Basis by Origination Year																																				Revolving Loans
(in thousands)			2024						2023						2022						2021						2020						Prior						Amortized Cost Basis						Converted to Term Loans						Total
Commercial, financial and agricultural
Pass			$	934,961					$	1,028,249					$	792,836					$	1,193,350					$	673,695					$	1,674,760					$	7,550,482					$	51,886					$	13,900,219
Special Mention			3,058						18,474						20,814						18,717						3,115						11,610						162,686						—						238,474
Substandard			24,733						11,262						61,038						16,934						34,589						16,657						241,394						4,053						410,660
Doubtful			85						—						—						5,911						390						—						7,238						—						13,624
Loss			—						281						—						—						—						—						655						—						936
Total commercial, financial and agricultural			962,837						1,058,266						874,688						1,234,912						711,789						1,703,027						7,962,455						55,939						14,563,913
Current YTD Period:
Gross charge-offs			4,704						16,181						3,104						8,685						768						3,659						44,633						—						81,734
Owner-occupied
Pass			530,817						990,813						1,523,512						1,285,723						889,231						1,815,520						633,504						—						7,669,120
Special Mention			2,064						2,499						58,020						29,153						33,873						54,748						—						—						180,357
Substandard			2,581						5,371						41,396						29,667						49,172						70,010						36,004						—						234,201
Doubtful			—						—						—						—						—						—						16,406						—						16,406
Total owner-occupied			535,462						998,683						1,622,928						1,344,543						972,276						1,940,278						685,914						—						8,100,084
Current YTD Period:
Gross charge-offs			—						76						—						182						1,538						10,276						—						—						12,072
Total commercial and industrial			1,498,299						2,056,949						2,497,616						2,579,455						1,684,065						3,643,305						8,648,369						55,939						22,663,997
Current YTD Period:
Gross charge-offs			$	4,704					$	16,257					$	3,104					$	8,867					$	2,306					$	13,935					$	44,633					$	—					$	93,806
Investment properties
Pass			503,828						667,123						3,355,278						2,670,450						958,907						2,500,687						197,991						—						10,854,264
Special Mention			4,606						2,234						96,870						138,423						—						68,788						—						—						310,921
Substandard			—						1,210						10,985						83,397						2,045						44,321						—						—						141,958
Doubtful			—						—						—						39,401						—						—						—						—						39,401
Loss			—						—						—						—						—						5						—						—						5
Total investment properties			508,434						670,567						3,463,133						2,931,671						960,952						2,613,801						197,991						—						11,346,549
Current YTD Period:
Gross charge-offs			—						—						174						4,752						—						4,600						—						—						9,526
1-4 family properties
Pass			108,463						94,108						101,161						81,883						29,777						57,377						47,838						—						520,607
Special Mention			—						—						706						604						175						88						—						—						1,573
Substandard			—						1,024						1,835						906						287						1,853						45						—						5,950
Total 1-4 family properties			108,463						95,132						103,702						83,393						30,239						59,318						47,883						—						528,130
Current YTD Period:
Gross charge-offs			—						103						—						—						—						143						—						—						246

			September 30, 2024
			Term Loans Amortized Cost Basis by Origination Year																																				Revolving Loans
(in thousands)			2024						2023						2022						2021						2020						Prior						Amortized Cost Basis						Converted to Term Loans						Total
Land and development
Pass			63,215						88,437						57,777						28,347						5,083						43,083						12,762						—						298,704
Special Mention			—						—						476						27						—						519						—						—						1,022
Substandard			—						1,380						—						—						156						1,543						—						—						3,079
Total land and development			63,215						89,817						58,253						28,374						5,239						45,145						12,762						—						302,805
Current YTD Period:
Gross charge-offs			—						—						—						—						35						—						—						—						35
Total commercial real estate			680,112						855,516						3,625,088						3,043,438						996,430						2,718,264						258,636						—						12,177,484
Current YTD Period:
Gross charge-offs			$	—					$	103					$	174					$	4,752					$	35					$	4,743					$	—					$	—					$	9,807
Consumer mortgages
Pass			363,788						714,393						690,581						963,482						1,140,919						1,383,128						28						—						5,256,319
Substandard			96						1,876						4,463						6,896						17,820						35,945						—						—						67,096
Loss			—						—						—						—						—						28						—						—						28
Total consumer mortgages			363,884						716,269						695,044						970,378						1,158,739						1,419,101						28						—						5,323,443
Current YTD Period:
Gross charge-offs			—						11						—						1						25						112						—						—						149
Home equity
Pass			—						—						—						—						—						—						1,348,947						441,666						1,790,613
Substandard			—						—						—						—						—						—						10,872						6,961						17,833
Loss			—						—						—						—						—						—						559						281						840
Total home equity			—						—						—						—						—						—						1,360,378						448,908						1,809,286
Current YTD Period:
Gross charge-offs			—						—						—						—						—						—						223						106						329
Credit cards
Pass			—						—						—						—						—						—						179,774						—						179,774
Substandard			—						—						—						—						—						—						574						—						574
Loss			—						—						—						—						—						—						1,038						—						1,038
Total credit cards			—						—						—						—						—						—						181,386						—						181,386
Current YTD Period:
Gross charge-offs			—						—						—						—						—						—						5,650						—						5,650
Other consumer loans
Pass			115,901						89,160						132,940						159,238						86,039						100,411						274,087						—						957,776
Substandard			145						989						1,248						3,127						1,112						617						52						—						7,290
Loss			—						—						—						—						—						—						12						—						12
Total other consumer loans			116,046						90,149						134,188						162,365						87,151						101,028						274,151						—						965,078
Current YTD Period:
Gross charge-offs			180						2,119						3,812						5,713						1,754						1,860						1,786						—						17,224
Total consumer			479,930						806,418						829,232						1,132,743						1,245,890						1,520,129						1,815,943						448,908						8,279,193
Current YTD Period:
Gross charge-offs			$	180					$	2,130					$	3,812					$	5,714					$	1,779					$	1,972					$	7,659					$	106					$	23,352
Loans, net of deferred fees and costs			$	2,658,341					$	3,718,883					$	6,951,936					$	6,755,636					$	3,926,385					$	7,881,698					$	10,722,948					$	504,847					$	43,120,674
Current YTD Period:
Gross charge-offs			$	4,884					$	18,490					$	7,090					$	19,333					$	4,120					$	20,650					$	52,292					$	106					$	126,965

			December 31, 2023
			Term Loans Amortized Cost Basis by Origination Year																																				Revolving Loans
(in thousands)			2023						2022						2021						2020						2019						Prior						Amortized Cost Basis						Converted to Term Loans						Total
Commercial, financial and agricultural
Pass			$	1,078,790					$	1,040,742					$	1,408,178					$	782,069					$	636,341					$	1,236,433					$	7,623,255					$	46,908					$	13,852,716
Special Mention			5,298						8,276						20,027						1,950						2,552						8,412						141,580						—						188,095
Substandard			36,557						14,742						35,744						37,186						88,940						21,032						182,069						1,685						417,955
Loss			—						—						—						—						—						355						224						—						579
Total commercial, financial and agricultural			1,120,645						1,063,760						1,463,949						821,205						727,833						1,266,232						7,947,128						48,593						14,459,345
Current YTD Period:
Gross charge-offs			9,367						3,436						8,175						19,532						1,165						2,071						30,696						203						74,645
Owner-occupied
Pass			859,887						1,521,469						1,501,405						958,620						710,634						1,401,416						782,180						—						7,735,611
Special Mention			1,709						9,114						22,562						2,593						4,689						48,640						79,031						—						168,338
Substandard			4,388						24,760						13,616						59,478						17,702						87,306						27,949						—						235,199
Total owner-occupied			865,984						1,555,343						1,537,583						1,020,691						733,025						1,537,362						889,160						—						8,139,148
Current YTD Period:
Gross charge-offs			—						—						433						6,836						1,544						2,862						—						—						11,675
Total commercial and industrial			1,986,629						2,619,103						3,001,532						1,841,896						1,460,858						2,803,594						8,836,288						48,593						22,598,493
Current YTD Period:
Gross charge-offs			$	9,367					$	3,436					$	8,608					$	26,368					$	2,709					$	4,933					$	30,696					$	203					$	86,320
Investment properties
Pass			593,540						3,140,041						2,863,327						1,161,697						1,052,638						1,900,744						261,737						—						10,973,724
Special Mention			—						1,616						169,550						—						48,429						33,903						—						—						253,498
Substandard			2,083						4,070						41,278						1,455						1,622						75,850						—						—						126,358
Doubtful			—						—						—						—						—						9,714						—						—						9,714
Loss			—						—						—						—						—						10						—						—						10
Total investment properties			595,623						3,145,727						3,074,155						1,163,152						1,102,689						2,020,221						261,737						—						11,363,304
Current YTD Period:
Gross charge-offs(1)			546						7,685						5,668						3,801						1,893						22,647						3,109						—						45,349
1-4 family properties
Pass			167,729						142,930						119,054						31,928						29,740						55,243						42,099						—						588,723
Special Mention			3,104						947						—						184						—						311						1						—						4,547
Substandard			1,721						822						643						465						324						1,212						45						—						5,232
Total 1-4 family properties			172,554						144,699						119,697						32,577						30,064						56,766						42,145						—						598,502
Current YTD Period:
Gross charge-offs			—						—						—						—						—						24						—						—						24
Land and development
Pass			105,609						84,962						35,993						16,131						18,616						59,605						888						—						321,804
Special Mention			—						496						—						—						—						774						—						—						1,270
Substandard			29,204						411						74						—						593						1,596						—						—						31,878
Total land and development			134,813						85,869						36,067						16,131						19,209						61,975						888						—						354,952
Current YTD Period:
Gross charge-offs			—						—						—						77						—						—						—						—						77
Total commercial real estate			902,990						3,376,295						3,229,919						1,211,860						1,151,962						2,138,962						304,770						—						12,316,758
Current YTD Period:
Gross charge-offs			$	546					$	7,685					$	5,668					$	3,878					$	1,893					$	22,671					$	3,109					$	—					$	45,450

			December 31, 2023
			Term Loans Amortized Cost Basis by Origination Year																																				Revolving Loans
(in thousands)			2023						2022						2021						2020						2019						Prior						Amortized Cost Basis						Converted to Term Loans						Total
Consumer mortgages
Pass			$	757,485					$	784,898					$	1,044,442					$	1,219,397					$	410,511					$	1,136,541					$	35					$	—					$	5,353,309
Substandard			564						2,810						5,517						15,913						9,478						23,662						—						—						57,944
Loss			—						—						—						—						—						470						—						—						470
Total consumer mortgages			758,049						787,708						1,049,959						1,235,310						419,989						1,160,673						35						—						5,411,723
Current YTD Period:
Gross charge-offs			—						108						251						403						402						965						5						—						2,134
Home equity
Pass			—						—						—						—						—						—						1,308,934						482,679						1,791,613
Substandard			—						—						—						—						—						—						10,231						5,297						15,528
Loss			—						—						—						—						—						—						174						84						258
Total home equity			—						—						—						—						—						—						1,319,339						488,060						1,807,399
Current YTD Period:
Gross charge-offs			—						—						—						—						—						79						819						229						1,127
Credit cards
Pass			—						—						—						—						—						—						192,217						—						192,217
Substandard			—						—						—						—						—						—						702						—						702
Loss			—						—						—						—						—						—						1,222						—						1,222
Total credit cards			—						—						—						—						—						—						194,141						—						194,141
Current YTD Period:
Gross charge-offs			—						—						—						—						—						—						7,165						—						7,165
Other consumer loans
Pass			134,969						181,455						219,415						114,006						28,256						112,724						277,368						—						1,068,193
Substandard			573						963						3,811						1,182						568						494						192						—						7,783
Total other consumer loans			135,542						182,418						223,226						115,188						28,824						113,218						277,560						—						1,075,976
Current YTD Period:
Gross charge-offs(1)			627						6,040						24,231						3,625						1,971						2,026						2,358						—						40,878
Total consumer			893,591						970,126						1,273,185						1,350,498						448,813						1,273,891						1,791,075						488,060						8,489,239
Current YTD Period:
Gross charge-offs			$	627					$	6,148					$	24,482					$	4,028					$	2,373					$	3,070					$	10,347					$	229					$	51,304
Loans, net of deferred fees and costs			$	3,783,210					$	6,965,524					$	7,504,636					$	4,404,254					$	3,061,633					$	6,216,447					$	10,932,133					$	536,653					$	43,404,490
Current YTD Period:
Gross charge-offs			$	10,540					$	17,269					$	38,758					$	34,274					$	6,975					$	30,674					$	44,152					$	432					$	183,074

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

Collateral-Dependent Loans

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

There were no material changes in the extent to which collateral secures our collateral-dependent loans during the three and nine months ended September 30, 2024.

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, 2024 and 2023. During the three and nine months ended September 30, 2024, Synovus had no significant transfers to loans held for sale. During the three and nine months ended September 30, 2023, Synovus charged-off $23.3 million and $31.3 million in previously established reserves for credit losses associated with the transfer of $1.17 billion and $1.59 billion, respectively, in loans to held for sale for the sales of medical office building loans and third-party consumer loans that both closed in the third quarter of 2023.

			As Of and For the Three Months Ended September 30, 2024
(in thousands)			Commercial & Industrial						Commercial Real Estate						Consumer						Total
Allowance for loan losses:
Beginning balance at June 30, 2024			$	220,730					$	141,680					$	122,691					$	485,101
Charge-offs			(21,484)						(5,833)						(6,789)						(34,106)
Recoveries			5,094						333						1,627						7,054
Provision for (reversal of) loan losses			(4,272)						7,408						23,800						26,936
Ending balance at September 30, 2024			$	200,068					$	143,588					$	141,329					$	484,985
			As Of and For the Three Months Ended September 30, 2023
(in thousands)			Commercial & Industrial						Commercial Real Estate						Consumer						Total
Allowance for loan losses:
Beginning balance at June 30, 2023			$	159,987					$	169,726					$	141,525					$	471,238
Charge-offs			(40,483)						(23,364)						(10,088)						(73,935)
Recoveries			3,842						310						2,961						7,113
Provision for (reversal of) loan losses			56,322						16,490						304						73,116
Ending balance at September 30, 2023			$	179,668					$	163,162					$	134,702					$	477,532
			As Of and For the Nine Months Ended September 30, 2024
(in thousands)			Commercial & Industrial						Commercial Real Estate						Consumer						Total
Allowance for loan losses:
Beginning balance at December 31, 2023			$	218,970					$	133,758					$	126,657					$	479,385
Charge-offs			(93,806)						(9,807)						(23,352)						(126,965)
Recoveries			12,971						1,562						6,539						21,072
Provision for (reversal of) loan losses			61,933						18,075						31,485						111,493
Ending balance at September 30, 2024			$	200,068					$	143,588					$	141,329					$	484,985
			As Of and For the Nine Months Ended September 30, 2023
(in thousands)			Commercial & Industrial						Commercial Real Estate						Consumer						Total
Allowance for loan losses:
Beginning balance at December 31, 2022			$	161,550					$	143,575					$	138,299					$	443,424
Charge-offs			(71,197)						(23,465)						(40,864)						(135,526)
Recoveries			13,720						972						9,066						23,758
Provision for (reversal of) loan losses			75,595						42,080						28,201						145,876
Ending balance at September 30, 2023			$	179,668					$	163,162					$	134,702					$	477,532

The ALL of $485.0 million and the reserve for unfunded commitments of $49.6 million, which is recorded in other liabilities, comprise the total ACL of $534.5 million at September 30, 2024. The ACL decreased $2.1 million compared to the December 31, 2023 ACL of $536.6 million, which consisted of the ALL of $479.4 million and a reserve for unfunded commitments of $57.2 million. The ACL to loans coverage ratio of 1.24% at September 30, 2024 was unchanged compared to 1.24% at December 31, 2023. When compared to the December 31, 2023 ACL, the September 30, 2024 ACL was slightly lower and characterized by lower net growth and improved performance, as well as increased economic uncertainty. The

Company includes adjustments, as appropriate, intended to capture the impact of uncertainties in the quantitative estimate. The ALL at September 30, 2024 included qualitative adjustments for higher risk portfolios such as Leveraged Lending, included in C&I, CRE Office Buildings and CRE Multi-family. The ALL at December 31, 2023 included quantitative adjustments to reflect uncertainty due to the impacts of government stimulus.

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

Financial Difficulty Modifications

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

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

			Three Months Ended September 30, 2024
(in thousands)			Interest Rate Reduction						Term Extension												Payment Delay						Interest Rate Reduction and Term Extension												Total						Percentage of Total by Financing Class
Investment properties			74,269						—												—						—												74,269						0.7
Total commercial real estate			74,269						—												—						—												74,269						0.6
Other consumer loans			24						118												—						10												152						—
Total consumer			24						118												—						10												152						—
Total FDMs			$	74,293					$	118											$	—					$	10											$	74,421					0.2		%
			Nine Months Ended September 30, 2024
(in thousands)			Interest Rate Reduction						Term Extension												Payment Delay						Interest Rate Reduction and Term Extension												Total						Percentage of Total by Financing Class
Commercial, financial and agricultural			$	—					$	7,130											$	—					$	—											$	7,130					—		%
Owner-occupied			—						188												—						—												188						—
Total commercial and industrial			—						7,318												—						—												7,318						—
Investment properties			74,269						2,227												—						—												76,496						0.7
Total commercial real estate			74,269						2,227												—						—												76,496						0.6
Consumer mortgages			122						—												209						—												331						—
Other consumer loans			197						553												—						10												760						0.1
Total consumer			319						553												209						10												1,091						—
Total FDMs			$	74,588					$	10,098											$	209					$	10											$	84,905					0.2		%

			Three Months Ended September 30, 2023
(in thousands)			Interest Rate Reduction						Term Extension						Principal Forgiveness and Term Extensions						Payment Delay						Interest Rate Reduction and Term Extension												Total						Percentage of Total by Financing Class
Commercial, financial and agricultural			$	408					$	13,304					$	—					$	—					$	194											$	13,906					0.1		%
Owner-occupied			—						18,979						—						—						11,750												30,729						0.4
Total commercial and industrial			408						32,283						—						—						11,944												44,635						0.2
Investment properties			—						2,216						—						—						—												2,216						—
1-4 family properties			—						36						—						—						—												36						—
Land and development			—						1,146						—						—						—												1,146						0.3
Total commercial real estate			—						3,398						—						—						—												3,398						—
Consumer mortgages			1,309						—						—						465						—												1,774						—
Other consumer loans			107						331						—						189						245												872						0.1
Total consumer			1,416						331						—						654						245												2,646						—
Total FDMs			$	1,824					$	36,012					$	—					$	654					$	12,189											$	50,679					0.1		%
			Nine Months Ended September 30, 2023
(in thousands)			Interest Rate Reduction						Term Extension						Principal Forgiveness and Term Extensions						Payment Delay						Interest Rate Reduction and Term Extension												Total						Percentage of Total by Financing Class
Commercial, financial and agricultural			$	2,467					$	26,212					$	12,586					$	—					$	1,537											$	42,802					0.3		%
Owner-occupied			—						20,782						—						—						53,004												73,786						0.9
Total commercial and industrial			2,467						46,994						12,586						—						54,541												116,588						0.5
Investment properties			—						2,848						—						—						—												2,848						—
1-4 family properties			—						2,429						—						—						375												2,804						0.5
Land and development			—						1,146						—						—						—												1,146						0.3
Total commercial real estate			—						6,423						—						—						375												6,798						0.1
Consumer mortgages			2,114						—						—						465						—												2,579						—
Home equity			—						425						—						—						289												714						—
Other consumer loans			111						697						—						189						721												1,718						0.2
Total consumer			2,225						1,122						—						654						1,010												5,011						0.1
Total FDMs			$	4,692					$	54,539					$	12,586					$	654					$	55,926											$	128,397					0.3		%

The following tables present the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2024 and 2023.

									Three Months Ended September 30, 2024																								Nine Months Ended September 30, 2024
(dollars in thousands)									Weighted Average Interest Rate Reduction						Weighted Average Term Extension (in months)						Weighted Average Payment Delay (in months)												Weighted Average Interest Rate Reduction						Weighted Average Term Extension (in months)						Weighted Average Payment Delay (in months)
Commercial, financial and agricultural									—		%				—						—												—		%				12						—
Owner-occupied									—						—						—												—						60						—
Investment properties									1.2						—						—												1.2						12						—
Consumer mortgages									—						—						—												2.3						—						7
Other consumer loans									7.2						57						—												4.5						70						—

			Three Months Ended September 30, 2023																								Nine Months Ended September 30, 2023
(dollars in thousands)			Principal Forgiveness and Term Extensions						Weighted Average Interest Rate Reduction						Weighted Average Term Extension (in months)						Weighted Average Payment Deferral (in months)						Principal Forgiveness and Term Extensions						Weighted Average Interest Rate Reduction						Weighted Average Term Extension (in months)						Weighted Average Payment Deferral (in months)
Commercial, financial and agricultural			$	—					2.2		%				12						—						$	1,200					2.2		%				27						—
Owner-occupied			—						4.4						6						—						—						2.3						8						—
Investment properties			—						—						6						—						—						—						12						—
1-4 family properties			—						—						12						—						—						0.4						12						—
Land and development			—						—						12						—						—						—						12						—
Consumer mortgages			—						2.5						—						6						—						1.6						—						6
Home equity			—						—						—						—						—						0.5						262						—
Other consumer loans			—						7.4						47						2						—						5.3						62						2

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

Synovus monitors the performance of FDMs to understand the effectiveness of its modification efforts. The following table provides a summary of current, accruing past due, and non-accrual loans on an amortized cost basis by loan portfolio class that have been modified during the 12 months prior to September 30, 2024.

			As of September 30, 2024
(in thousands)			Current						Accruing 30-89 Days Past Due						Accruing 90 Days or Greater Past Due												Non-accrual						Total
Commercial, financial and agricultural			$	26,239					$	1,005					$	—											$	355					$	27,599
Owner-occupied			2,745						—						—												250						2,995
Total commercial and industrial			28,984						1,005						—												605						30,594
Investment properties			44,100						—						—												32,397						76,497
1-4 family properties			—						—						—												—						—
Land and development			—						—						—												—						—
Total commercial real estate			44,100						—						—												32,397						76,497
Consumer mortgages			—						—						—												331						331
Home equity			—						—						—												—						—
Credit cards			—						—						—												—						—
Other consumer loans			539						106						—												229						874
Total consumer			539						106						—												560						1,205
Total FDMs			$	73,623					$	1,111					$	—											$	33,562					$	108,296

The following table provides a summary of current, accruing past due, and non-accrual loans on an amortized cost basis by loan portfolio class that were modified on or after January 1, 2023, the date Synovus adopted ASU 2022-02, through September 30, 2023.

			As of September 30, 2023
(in thousands)			Current						Accruing 30-89 Days Past Due						Accruing 90 Days or Greater Past Due												Non-accrual (1)						Total
Commercial, financial and agricultural			$	29,386					$	829					$	—											$	12,586					$	42,801
Owner-occupied			73,109						—						—												678						73,787
Total commercial and industrial			102,495						829						—												13,264						116,588
Investment properties			2,533						—						—												315						2,848
1-4 family properties			1,207						—						—												1,597						2,804
Land and development			1,146						—						—												—						1,146
Total commercial real estate			4,886						—						—												1,912						6,798
Consumer mortgages			1,184						—						—												1,394						2,578
Home equity			714						—						—												—						714
Credit cards			—						—						—												—						—
Other consumer loans			639						184						—												896						1,719
Total consumer			2,537						184						—												2,290						5,011
Total FDMs			$	109,918					$	1,013					$	—											$	17,466					$	128,397

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

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