Loans And Allowance For Loan Losses | Note 4 - Loans and Allowance for Loan Losses Loans outstanding, by classification, at December 31, 2018 and 2017 are summarized below. December 31, (in thousands) 2018 2017 Commercial, financial, and agricultural $ 7,449,698 $ 7,179,487 Owner-occupied 5,331,508 4,844,163 Total commercial and industrial 12,781,206 12,023,650 Investment properties 5,560,951 5,670,065 1-4 family properties 679,870 781,619 Land and development 323,670 483,604 Total commercial real estate 6,564,491 6,935,288 Consumer mortgages 2,934,235 2,633,503 Home equity lines 1,515,796 1,514,227 Credit cards 258,245 232,676 Other consumer loans 1,916,743 1,473,451 Total consumer 6,625,019 5,853,857 Total loans 25,970,716 24,812,795 Deferred fees and costs, net (24,143 ) (25,331 ) Total loans, net of deferred fees and costs $ 25,946,573 $ 24,787,464 The following is a summary of current, accruing past due, and non-accrual loans by class as of December 31, 2018 and 2017 . Current, Accruing Past Due, and Non-accrual Loans December 31, 2018 ( in thousands) Current Accruing 30-89 Days Past Due Accruing 90 Days or Greater Past Due Total Accruing Past Due Non-accrual Total Commercial, financial, and agricultural $ 7,372,301 $ 7,988 $ 114 $ 8,102 $ 69,295 $ 7,449,698 Owner-occupied 5,317,023 5,433 81 5,514 8,971 5,331,508 Total commercial and industrial 12,689,324 13,421 195 13,616 78,266 12,781,206 Investment properties 5,557,224 1,312 34 1,346 2,381 5,560,951 1-4 family properties 674,648 2,745 96 2,841 2,381 679,870 Land and development 319,978 739 — 739 2,953 323,670 Total commercial real estate 6,551,850 4,796 130 4,926 7,715 6,564,491 Consumer mortgages 2,922,136 7,150 — 7,150 4,949 2,934,235 Home equity lines 1,496,562 7,092 28 7,120 12,114 1,515,796 Credit cards 252,832 3,066 2,347 5,413 — 258,245 Other consumer loans 1,894,352 17,604 1,098 18,702 3,689 1,916,743 Total consumer 6,565,882 34,912 3,473 38,385 20,752 6,625,019 Total loans $ 25,807,056 $ 53,129 $ 3,798 $ 56,927 $ 106,733 $ 25,970,716 (1) December 31, 2017 ( in thousands) Current Accruing 30-89 Days Past Due Accruing 90 Days or Greater Past Due Total Accruing Past Due Non-accrual Total Commercial, financial, and agricultural $ 7,097,127 $ 11,214 $ 1,016 $ 12,230 $ 70,130 $ 7,179,487 Owner-occupied 4,830,150 6,880 479 7,359 6,654 4,844,163 Total commercial and industrial 11,927,277 18,094 1,495 19,589 76,784 12,023,650 Investment properties 5,663,665 2,506 90 2,596 3,804 5,670,065 1-4 family properties 775,023 3,545 202 3,747 2,849 781,619 Land and development 476,131 1,609 67 1,676 5,797 483,604 Total commercial real estate 6,914,819 7,660 359 8,019 12,450 6,935,288 Consumer mortgages 2,622,061 3,971 268 4,239 7,203 2,633,503 Home equity lines 1,490,808 5,629 335 5,964 17,455 1,514,227 Credit cards 229,015 1,930 1,731 3,661 — 232,676 Other consumer loans 1,461,223 10,333 226 10,559 1,669 1,473,451 Total consumer 5,803,107 21,863 2,560 24,423 26,327 5,853,857 Total loans $ 24,645,203 $ 47,617 $ 4,414 $ 52,031 $ 115,561 $ 24,812,795 (2) (1) Total before net deferred fees and costs of $24.1 million . (2) Total before net deferred fees and costs of $25.3 million . Interest income recorded on non-accrual loans outstanding at December 31, 2018 and 2017 was $3.2 million and $2.7 million during 2018 and 2017 , respectively. Interest income that would have been recorded on these non-accrual loans if the loans were performing in accordance with their contractual terms was $7.3 million and $9.1 million during 2018 and 2017 , respectively. Loans with carrying values of $8.40 billion and $7.93 billion were pledged as collateral for borrowings and capacity at December 31, 2018 and 2017 respectively, to the FHLB and Federal Reserve Bank. The credit quality of the loan portfolio is reviewed and updated at least quarterly using the standard asset classification system utilized by the federal banking agencies. These classifications are divided into three groups – Not Classified (Pass), Special Mention, and Classified or Adverse rating (Substandard, Doubtful, and Loss) and are defined as follows: Pass - loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell in a timely manner, of any underlying collateral. Special Mention - loans which have potential weaknesses that deserve management's close attention. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant an adverse classification. Substandard - loans which are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans with this classification are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful - loans which have all the weaknesses inherent in loans classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently known facts, conditions, and values. Loss - loans which are considered by management to be uncollectible and of such little value that their continuance on the institution's books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. 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 lines) secured by junior liens on 1-4 family residential properties also consider available information on the payment status of the associated senior lien with other financial institutions. Loan Portfolio Credit Exposure by Risk Grade December 31, 2018 (in thousands) Pass Special Mention Substandard (1) Doubtful (2) Loss (3) Total Commercial, financial, and agricultural $ 7,190,517 $ 118,188 $ 140,218 $ 775 $ — $ 7,449,698 Owner-occupied 5,212,473 55,038 63,572 425 — 5,331,508 Total commercial and industrial 12,402,990 173,226 203,790 1,200 — 12,781,206 Investment properties 5,497,344 40,516 23,091 — — 5,560,951 1-4 family properties 663,692 6,424 9,754 — — 679,870 Land and development 297,855 12,786 13,029 — — 323,670 Total commercial real estate 6,458,891 59,726 45,874 — — 6,564,491 Consumer mortgages 2,926,712 — 7,425 98 — 2,934,235 Home equity lines 1,501,316 — 13,130 174 1,176 1,515,796 Credit cards 255,904 — 858 — 1,483 (4) 258,245 Other consumer loans 1,912,902 — 3,841 — — 1,916,743 Total consumer 6,596,834 — 25,254 272 2,659 6,625,019 Total loans $ 25,458,715 $ 232,952 $ 274,918 $ 1,472 $ 2,659 $ 25,970,716 (5) December 31, 2017 (in thousands) Pass Special Mention Substandard (1) Doubtful (2) Loss (3) Total Commercial, financial, and agricultural $ 6,929,506 $ 115,912 $ 132,818 $ 1,251 $ — $ 7,179,487 Owner-occupied 4,713,877 50,140 80,073 73 — 4,844,163 Total commercial and industrial 11,643,383 166,052 212,891 1,324 — 12,023,650 Investment properties 5,586,792 64,628 18,645 — — 5,670,065 1-4 family properties 745,299 19,419 16,901 — — 781,619 Land and development 431,759 33,766 14,950 3,129 — 483,604 Total commercial real estate 6,763,850 117,813 50,496 3,129 — 6,935,288 Consumer mortgages 2,622,499 — 10,607 291 106 2,633,503 Home equity lines 1,491,105 — 21,079 285 1,758 1,514,227 Credit cards 230,945 — 399 — 1,332 (4) 232,676 Other consumer loans 1,470,944 — 2,168 329 10 1,473,451 Total consumer 5,815,493 — 34,253 905 3,206 5,853,857 Total loans $ 24,222,726 $ 283,865 $ 297,640 $ 5,358 $ 3,206 $ 24,812,795 (6) (1) Includes $172.3 million and $190.6 million of Substandard accruing loans at December 31, 2018 and December 31, 2017 , respectively. (2) The loans within this risk grade are on non-accrual status and generally have an allowance for loan losses equal to 50% of the loan amount. (3) The loans within this risk grade are on non-accrual status and have an allowance for loan losses equal to the full loan amount. (4) Represent amounts that were 120 days past due. These credits are downgraded to the Loss category with an allowance for loan losses equal to the full loan amount and are generally charged off upon reaching 181 days past due in accordance with the FFIEC Retail Credit Classification Policy. (5) Total before net deferred fees and costs of $24.1 million . (6) Total before net deferred fees and costs of $25.3 million . The following table details the change in the allowance for loan losses by loan segment for the years ended December 31, 2018 , 2017 and 2016 . As Of and For The Year Ended December 31, 2018 (in thousands) Commercial & Industrial Commercial Real Estate Consumer Total Allowance for loan losses Beginning balance $ 126,803 $ 74,998 $ 47,467 $ 249,268 Charge-offs (48,775 ) (4,408 ) (20,871 ) (74,054 ) Recoveries 7,165 10,188 6,291 23,644 Provision for loan losses 47,930 (11,982 ) 15,749 51,697 Ending balance (4) $ 133,123 $ 68,796 $ 48,636 $ 250,555 Ending balance: individually evaluated for impairment $ 10,207 $ 2,598 $ 744 $ 13,549 Ending balance: collectively evaluated for impairment $ 122,916 $ 66,198 $ 47,892 $ 237,006 Loans Ending balance: total loans (1) (4) $ 12,781,206 $ 6,564,491 $ 6,625,019 $ 25,970,716 Ending balance: individually evaluated for impairment $ 105,422 $ 33,198 $ 28,306 $ 166,926 Ending balance: collectively evaluated for impairment $ 12,675,784 $ 6,531,293 $ 6,596,713 $ 25,803,790 As Of and For The Year Ended December 31, 2017 (in thousands) Commercial & Industrial Commercial Real Estate Consumer Total Allowance for loan losses Beginning balance $ 125,778 $ 81,816 $ 44,164 $ 251,758 Charge-offs (49,244 ) (12,193 ) (28,982 ) (90,419 ) Recoveries 6,685 8,026 6,033 20,744 Provision for loan losses 43,584 (2,651 ) 26,252 67,185 Ending balance (4) $ 126,803 $ 74,998 $ 47,467 $ 249,268 Ending balance: individually evaluated for impairment $ 9,515 $ 4,240 $ 1,153 $ 14,908 Ending balance: collectively evaluated for impairment $ 117,288 $ 70,758 $ 46,314 $ 234,360 Loans Ending balance: total loans (2) (4) $ 12,023,650 $ 6,935,288 $ 5,853,857 $ 24,812,795 Ending balance: individually evaluated for impairment $ 111,334 $ 56,896 $ 32,056 $ 200,286 Ending balance: collectively evaluated for impairment $ 11,912,316 $ 6,878,392 $ 5,821,801 $ 24,612,509 As Of and For The Year Ended December 31, 2016 (in thousands) Commercial & Industrial Commercial Real Estate Consumer Total Allowance for loan losses Beginning balance $ 122,989 $ 87,133 $ 42,374 $ 252,496 Charge-offs (25,039 ) (18,216 ) (14,705 ) (57,960 ) Recoveries 9,071 15,226 4,925 $ 29,222 Provision for loan losses 18,757 (2,327 ) 11,570 28,000 Ending balance (4) $ 125,778 $ 81,816 $ 44,164 $ 251,758 Ending balance: individually evaluated for impairment $ 8,384 $ 7,916 $ 1,811 $ 18,111 Ending balance: collectively evaluated for impairment $ 117,394 $ 73,900 $ 42,353 $ 233,647 Loans Ending balance: total loans (3) (4) $ 11,543,806 $ 7,374,112 $ 4,964,464 $ 23,882,382 Ending balance: individually evaluated for impairment $ 120,560 $ 91,410 $ 37,526 $ 249,496 Ending balance: collectively evaluated for impairment $ 11,423,246 $ 7,282,702 $ 4,926,938 $ 23,632,886 (1) Total before net deferred fees and costs of $24.1 million . (2) Total before net deferred fees and costs of $25.3 million . (3) Total before net deferred fees and costs of $26.0 million . (4) As of and for the years ended December 31, 2018 , 2017 , and 2016 , there were no purchased credit-impaired loans and no allowance for loan losses for purchased credit-impaired loans. Below is a detailed summary of impaired loans (including accruing TDRs) by class as of December 31, 2018 and 2017 and for the years ended December 31, 2018 , 2017 and 2016 . At December 31, 2018 , 2017 , and 2016 , impaired loans of $51.3 million , $49.0 million , and $53.7 million , respectively, were on non-accrual status. Impaired Loans (including accruing TDRs) December 31, 2018 December 31, 2017 Recorded Investment Recorded Investment (in thousands) Unpaid Principal Balance Without an ALL With an ALL Related Allowance Unpaid Principal Balance Without an ALL With an ALL Related Allowance Commercial, financial, and agricultural $ 65,150 $ 22,298 $ 34,222 $ 7,133 $ 75,427 $ 8,220 $ 65,715 $ 7,406 Owner-occupied 49,588 — 48,902 3,074 37,441 — 37,399 2,109 Total commercial and industrial 114,738 22,298 83,124 10,207 112,868 8,220 103,114 9,515 Investment properties 13,916 — 13,916 1,523 23,364 — 23,364 1,100 1-4 family properties 5,586 — 5,586 131 15,056 — 15,056 504 Land and development 16,283 265 13,431 944 20,216 56 18,420 2,636 Total commercial real estate 35,785 265 32,933 2,598 58,636 56 56,840 4,240 Consumer mortgages 19,506 — 19,506 343 18,668 — 18,668 569 Home equity lines 3,264 — 3,235 224 8,039 2,746 5,096 114 Other consumer loans 5,565 — 5,565 177 5,546 — 5,546 470 Total consumer 28,335 — 28,306 744 32,253 2,746 29,310 1,153 Total impaired loans $ 178,858 $ 22,563 $ 144,363 $ 13,549 $ 203,757 $ 11,022 $ 189,264 $ 14,908 Years Ended December 31, 2018 2017 2016 (in thousands) Average Recorded Investment Interest Income Recognized (1) Average Recorded Investment Interest Income Recognized (1) Average Recorded Investment Interest Income Recognized (1) Commercial, financial and agricultural $ 65,976 $ 2,316 $ 72,154 $ 2,127 $ 58,289 $ 1,876 Owner-occupied 42,341 1,851 40,498 1,509 60,694 2,133 Total commercial and industrial 108,317 4,167 112,652 3,636 118,983 4,009 Investment properties 18,564 767 28,749 1,178 38,373 1,485 1-4 family properties 9,813 782 16,099 1,021 40,723 919 Land and development 16,841 249 24,637 404 28,891 1,026 Total commercial real estate 45,218 1,798 69,485 2,603 107,987 3,430 Consumer mortgages 19,516 134 18,319 376 21,863 1,014 Home equity lines 3,491 820 7,748 896 10,713 451 Other consumer loans 5,327 297 4,765 266 5,062 303 Total consumer 28,334 1,251 30,832 1,538 37,638 1,768 Total impaired loans $ 181,869 $ 7,216 $ 212,969 $ 7,777 $ 264,608 $ 9,207 (1) Of the interest income recognized during the years ended December 31, 2018, 2017, or 2016, cash-basis interest income was $1.8 million , $815 thousand , and $1.0 million , respectively. The following tables represent, by concession type, the post-modification balance for loans restructured during the years ended December 31, 2018 , 2017 , and 2016 that were reported as accruing or non-accruing TDRs. TDRs by Concession Type Year Ended December 31, 2018 (in thousands, except contract data) Number of Contracts Below Market Interest Rate Other Concessions (1) Total Commercial, financial, and agricultural 46 $ 3,807 $ 3,957 $ 7,764 Owner-occupied 16 7,589 5,705 13,294 Total commercial and industrial 62 11,396 9,662 21,058 Investment properties 10 8,070 2,215 10,285 1-4 family properties 25 2,481 2,014 4,495 Land and development 5 122 1,856 1,978 Total commercial real estate 40 10,673 6,085 16,758 Consumer mortgages 19 5,590 93 5,683 Home equity lines 4 172 339 511 Other consumer loans 92 1,834 3,983 5,817 Total consumer 115 7,596 4,415 12,011 Total loans 217 $ 29,665 $ 20,162 $ 49,827 (2) Year Ended December 31, 2017 (in thousands, except contract data) Number of Contracts Below Market Interest Rate Other Concessions (1) Total Commercial, financial, and agricultural 56 $ 9,434 $ 12,145 $ 21,579 Owner-occupied 4 35 1,705 1,740 Total commercial and industrial 60 9,469 13,850 23,319 Investment properties 1 — 121 121 1-4 family properties 35 2,786 2,040 4,826 Land and development 6 157 1,614 1,771 Total commercial real estate 42 2,943 3,775 6,718 Consumer mortgages 11 2,539 1,190 3,729 Other consumer loans 38 1,624 1,333 2,957 Total consumer 49 4,163 2,523 6,686 Total loans 151 $ 16,575 $ 20,148 $ 36,723 (3) TDRs by Concession Type (continued) Year Ended December 31, 2016 (in thousands, except contract data) Number of Contracts Below Market Interest Rate Other Concessions (1) Total Commercial, financial, and agricultural 63 $ 17,509 $ 7,160 $ 24,669 Owner-occupied 9 7,884 550 8,434 Total commercial and industrial 72 25,393 7,710 33,103 Investment properties 4 1,825 3,518 5,343 1-4 family properties 39 5,499 1,488 6,987 Land and development 14 — 4,099 4,099 Total commercial real estate 57 7,324 9,105 16,429 Consumer mortgages 7 413 51 464 Home equity lines 5 225 123 348 Credit cards — — — — Other consumer loans 28 394 2,256 2,650 Total consumer 40 1,032 2,430 3,462 Total loans 169 $ 33,749 $ 19,245 $ 52,994 (4) (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 years ended December 31, 2018, 2017, or 2016. (2) Net charge-offs of $403 thousand were recorded during 2018 upon restructuring of these loans. (3) No charge-offs were recorded during 2017 upon restructuring of these loans. (4) No charge-offs were recorded during 2016 upon restructuring of these loans. For the years ended December 31, 2018 , 2017 and 2016 , there were eight defaults with a recorded investment of $10.5 million , eight defaults with a recorded investment of $4.0 million , and two defaults with a recorded investment of $181 thousand , respectively, 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). If at the time that a loan was designated as a TDR the loan was not already impaired, the measurement of impairment resulting from the TDR designation changes from a general pool-level reserve to a specific loan measurement of impairment in accordance with ASC 310-10-35. Generally, the change in the allowance for loan losses resulting from such a TDR is not significant. At December 31, 2018 , the allowance for loan losses allocated to accruing TDRs totaling $115.6 million was $6.1 million compared to accruing TDRs of $151.3 million with an allocated allowance for loan losses of $8.7 million at December 31, 2017 . Non-accrual non-homogeneous loans (commercial-type impaired loan relationships greater than $1 million ) that are designated as TDRs are individually measured for the amount of impairment, if any, both before and after the TDR designation. |