Loans and Allowance for Loan Losses | Note 4 - Loans and Allowance for Loan Losses The following is a summary of current, accruing past due, and non-accrual originated (loans originated, renewed, refinanced, modified, or otherwise underwritten by Synovus) and acquired loans from business combinations by portfolio class as of March 31, 2019 and December 31, 2018 . Current, Accruing Past Due, and Non-accrual Originated Loans March 31, 2019 (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 $ 7,563,911 $ 17,395 $ 641 $ 18,036 $ 79,305 $ 7,661,252 Owner-occupied 5,356,411 7,699 329 8,028 11,239 5,375,678 Total commercial and industrial 12,920,322 25,094 970 26,064 90,544 13,036,930 Investment properties 5,712,709 7,510 — 7,510 726 5,720,945 1-4 family properties 654,046 2,031 — 2,031 1,722 657,799 Land and development 336,537 3,749 251 4,000 2,650 343,187 Total commercial real estate 6,703,292 13,290 251 13,541 5,098 6,721,931 Consumer mortgages 3,031,630 5,721 — 5,721 6,856 3,044,207 Home equity lines 1,521,292 5,333 345 5,678 13,756 1,540,726 Credit cards 248,066 2,307 2,389 4,696 — 252,762 Other consumer loans 2,002,539 16,374 531 16,905 4,249 2,023,693 Total consumer 6,803,527 29,735 3,265 33,000 24,861 6,861,388 Total loans $ 26,427,141 $ 68,119 $ 4,486 $ 72,605 $ 120,503 $ 26,620,249 (1) Current, Accruing Past Due, and Non-accrual Acquired Loans March 31, 2019 (in thousands) Current Accruing 30-89 Days Past Due (2) Accruing 90 Days or Greater Past Due (2) Total Accruing Past Due (2) Non-accrual (2) ASC 310-30 Loans Discount/Premium Total Commercial, financial and agricultural $ 702,511 $ — $ — $ — $ — $ 1,200,453 $ (16,400 ) $ 1,886,564 Owner-occupied 76,452 — — — — 1,115,983 (7,432 ) 1,185,003 Total commercial and industrial 778,963 — — — — 2,316,436 (23,832 ) 3,071,567 Investment properties 991,352 — — — — 2,228,455 (23,972 ) 3,195,835 1-4 family properties 44,363 — — — 180 63,960 (1,301 ) 107,202 Land and development 127,204 — — — — 113,053 (2,853 ) 237,404 Total commercial real estate 1,162,919 — — — 180 2,405,468 (28,126 ) 3,540,441 Consumer mortgages 127,577 — — — — 2,319,288 (100,251 ) 2,346,614 Home equity lines 68,395 75 — 75 7 5,377 (8,353 ) 65,501 Other consumer loans 358 — — — — 14,923 (1,497 ) 13,784 Total consumer 196,330 75 — 75 7 2,339,588 (110,101 ) 2,425,899 Total loans $ 2,138,212 $ 75 $ — $ 75 $ 187 $ 7,061,492 $ (162,059 ) $ 9,037,907 (3) 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 (4) (1) Total before net deferred fees and costs of $23.7 million . (2) For purposes of this table, non-performing and past due loans exclude acquired loans accounted for under ASC 310-30. (3) Represents $9.29 billion (at fair value) of loans acquired from FCB, net of payments since acquisition date. (4) Total before net deferred fees and costs of $24.1 million . Loans with carrying values of $11.59 billion and $8.40 billion were pledged as collateral for borrowings and capacity at March 31, 2019 and December 31, 2018 , respectively, to the FHLB and Federal Reserve Bank. The credit quality of the loan portfolio is reviewed and updated no less frequently than quarterly using the standard asset classification system utilized by the federal banking agencies. These classifications are divided into three groups – Not Criticized (Pass), Special Mention, and Classified or Adverse rating (Substandard, Doubtful, and Loss) and are defined as follows: Pass - loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell in a timely manner, of any underlying collateral. Special Mention - loans which have potential weaknesses that deserve management's close attention. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant an adverse classification. Substandard - loans which are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans with this classification are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful - loans which have all the weaknesses inherent in loans classified as Substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently known facts, conditions, and values. Loss - loans which are considered by management to be uncollectible and of such little value that their continuance on the institution's books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. 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 any associated senior liens with other financial institutions. Originated Loan Portfolio Credit Exposure by Risk Grade March 31, 2019 (in thousands) Pass Special Substandard (1) Doubtful (2) Loss (3) Total Commercial, financial and agricultural $ 7,409,047 $ 114,592 $ 134,607 $ 3,006 $ — $ 7,661,252 Owner-occupied 5,261,553 44,074 69,626 425 — 5,375,678 Total commercial and industrial 12,670,600 158,666 204,233 3,431 — 13,036,930 Investment properties 5,674,855 21,418 24,672 — — 5,720,945 1-4 family properties 644,165 6,080 7,554 — — 657,799 Land and development 320,071 13,057 10,059 — — 343,187 Total commercial real estate 6,639,091 40,555 42,285 — — 6,721,931 Consumer mortgages 3,035,289 — 8,821 97 — 3,044,207 Home equity lines 1,524,679 — 14,279 22 1,746 1,540,726 Credit cards 250,379 — 820 — 1,563 (4) 252,762 Other consumer loans 2,019,300 — 4,393 — — 2,023,693 Total consumer 6,829,647 — 28,313 119 3,309 6,861,388 Total loans $ 26,139,338 $ 199,221 $ 274,831 $ 3,550 $ 3,309 $ 26,620,249 (5) Acquired Loan Portfolio Credit Exposure by Risk Grade March 31, 2019 (in thousands) Pass Special Mention Substandard (1) Doubtful Loss Total Commercial, financial and agricultural $ 1,851,159 $ 18,283 $ 17,122 $ — $ — $ 1,886,564 Owner-occupied 1,171,512 5,723 7,768 — — 1,185,003 Total commercial and industrial 3,022,671 24,006 24,890 — — 3,071,567 Investment properties 3,130,586 21,853 43,396 — — 3,195,835 1-4 family properties 104,555 164 2,483 — — 107,202 Land and development 237,274 130 — — — 237,404 Total commercial real estate 3,472,415 22,147 45,879 — — 3,540,441 Consumer mortgages 2,341,245 — 5,369 — — 2,346,614 Home equity lines 65,084 — 417 — — 65,501 Other consumer loans 13,784 — — — — 13,784 Total consumer 2,420,113 — 5,786 — — 2,425,899 Total loans $ 8,915,199 $ 46,153 $ 76,555 $ — $ — $ 9,037,907 (6) Loan Portfolio Credit Exposure by Risk Grade December 31, 2018 (in thousands) Pass Special 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 (7) (1) Includes $214.3 million and $172.3 million of Substandard accruing loans at March 31, 2019 and December 31, 2018 , 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 $23.7 million . (6) Represents $9.29 billion (at fair value) of loans acquired from FCB, net of payments since acquisition date. (7) Total before net deferred fees and costs of $24.1 million . Acquired loans As discussed in "Part I - Item 1. Financial Statements and Supplementary Data - Note 2 - Acquisitions" , on January 1, 2019, Synovus acquired loans from FCB with fair values of $9.29 billion net of total discount of $169.4 million . At the Acquisition Date, the contractual required payments receivable on the purchased loans accounted for under ASC 310-20 totaled $2.45 billion , with a corresponding fair value of $2.15 billion . The estimated cash flows not expected to be collected at the Acquisition Date were $39.5 million . Information about the acquired FCB loan portfolio accounted for under ASC 310-30 as of the Acquisition Date is in the following table. (dollars in thousands) ASC 310-30 Loans Contractually required principal and interest at acquisition $ 8,377,942 Non-accretable difference (expected losses and foregone interest) (163,147 ) Cash flows expected to be collected at acquisition 8,214,795 Accretable yield (1,066,689 ) Basis in ASC 310-30 loans at acquisition $ 7,148,106 The following table is a summary of changes in the accretable difference for all loans accounted for under ASC 310-30 for the three months ended March 31, 2019 . (dollars in thousands) Three Months Ended March 31, 2019 Beginning balance $ — Additions 1,066,689 Transfers from non-accretable difference to accretable yield — Accretion (88,928 ) Changes in expected cash flows not affecting non-accretable differences (1) — Ending balance $ 977,761 (1) Includes changes in cash flows expected to be collected due to the impact of changes in actual or expected timing of liquidation events, modifications, changes in interest rates and changes in prepayment assumptions . The following tables detail the changes in the allowance for loan losses by loan segment for the three months ended March 31, 2019 and 2018. Allowance for Loan Losses and Recorded Investment in Loans As Of and For The Three Months Ended March 31, 2019 (in thousands) Commercial & Industrial Commercial Real Estate Consumer Total Allowance for loan losses: Beginning balance $ 133,123 $ 68,796 $ 48,636 $ 250,555 Charge-offs (13,039 ) (1,233 ) (6,427 ) (20,699 ) Recoveries 1,990 344 1,277 3,611 Provision for loan losses 13,565 1,102 8,902 23,569 Ending balance (1) $ 135,639 $ 69,009 $ 52,388 $ 257,036 Ending balance: individually evaluated for impairment $ 17,948 $ 1,610 $ 763 $ 20,321 Ending balance: collectively evaluated for impairment $ 117,691 $ 67,399 $ 51,625 $ 236,715 Loans: Ending balance: total loans (2) $ 16,108,497 $ 10,262,372 $ 9,287,287 $ 35,658,156 Ending balance: individually evaluated for impairment $ 135,825 $ 28,107 $ 28,347 $ 192,279 Ending balance: collectively evaluated for impairment (3) $ 13,680,451 $ 7,854,004 $ 7,018,033 $ 28,552,488 Ending balance: acquired loans accounted for under ASC 310-30 (4) $ 2,292,221 $ 2,380,261 $ 2,240,907 $ 6,913,389 As Of and For The Three Months Ended March 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 (8,015 ) (1,911 ) (4,455 ) (14,381 ) Recoveries 3,112 5,723 1,266 10,101 Provision for loan losses 12,845 (4,819 ) 4,750 12,776 Ending balance (1) $ 134,745 $ 73,991 $ 49,028 $ 257,764 Ending balance: individually evaluated for impairment $ 14,405 $ 3,740 $ 797 $ 18,942 Ending balance: collectively evaluated for impairment $ 120,340 $ 70,251 $ 48,231 $ 238,822 Loans: Ending balance: total loans (1)(5) $ 12,101,917 $ 6,835,727 $ 5,969,354 $ 24,906,998 Ending balance: individually evaluated for impairment $ 112,823 $ 49,221 $ 29,608 $ 191,652 Ending balance: collectively evaluated for impairment $ 11,989,094 $ 6,786,506 $ 5,939,746 $ 24,715,346 (1) As of and for the three months ended March 31, 2019 and 2018 , there was no allowance for loan losses for acquired loans accounted for under ASC 310-30. (2) Total before net deferred fees and costs of $23.7 million . (3) These loans are presented net of the remaining fair value discount of $14.0 million at March 31. 2019. (4) These loans are presented net of the remaining fair value discount of $148.1 million at March 31, 2019. (5) Total before net deferred fees and costs of $24.0 million . Below is a detailed summary of impaired loans (including TDRs) by class as of March 31, 2019 and December 31, 2018 and for the three months ended March 31, 2019 and 2018. At March 31, 2019 and December 31, 2018 , impaired loans of $80.1 million and $51.3 million , respectively, were on non-accrual status. Impaired Loans (including accruing TDRs) March 31, 2019 December 31, 2018 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 $ 98,263 $ 32,007 $ 53,145 $ 15,063 $ 65,150 $ 22,298 $ 34,222 $ 7,133 Owner-occupied 53,433 124 50,549 2,885 49,588 — 48,902 3,074 Total commercial and industrial 151,696 32,131 103,694 17,948 114,738 22,298 83,124 10,207 Investment properties 13,019 — 13,019 894 13,916 — 13,916 1,523 1-4 family properties 5,044 — 5,044 144 5,586 — 5,586 131 Land and development 12,632 265 9,779 572 16,283 265 13,431 944 Total commercial real estate 30,695 265 27,842 1,610 35,785 265 32,933 2,598 Consumer mortgages 19,751 — 19,751 280 19,506 — 19,506 343 Home equity lines 3,389 — 3,339 307 3,264 — 3,235 224 Other consumer loans 5,257 — 5,257 176 5,565 — 5,565 177 Total consumer 28,397 — 28,347 763 28,335 — 28,306 744 Total loans $ 210,788 $ 32,396 $ 159,883 $ 20,321 $ 178,858 $ 22,563 $ 144,363 $ 13,549 Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 (in thousands) Average Recorded Investment Interest Income Recognized (1) Average Recorded Investment Interest Income Recognized (1) Commercial, financial and agricultural $ 76,353 $ 554 $ 75,880 $ 399 Owner-occupied 50,038 526 37,715 370 Total commercial and industrial 126,391 1,080 113,595 769 Investment properties 13,040 142 22,769 198 1-4 family properties 5,509 131 11,715 216 Land and development 11,062 35 18,170 76 Total commercial real estate 29,611 308 52,654 490 Consumer mortgages 20,037 213 19,986 195 Home equity lines 3,302 35 6,505 45 Other consumer loans 5,463 78 5,391 72 Total consumer 28,802 326 31,882 312 Total loans $ 184,804 $ 1,714 $ 198,131 $ 1,571 (1) Of the interest income recognized during the three months ended March 31, 2019 and 2018, cash-basis interest income was $400 thousand and $141 thousand , respectively. Information about Synovus' TDRs is presented in the following tables. Modifications of loans that are accounted for within a pool under ASC Topic 310-30 are excluded as TDRs. Accordingly, such modifications do not result in the removal of those loans from the pool, even if the modification of those loans would otherwise be considered a TDR. As a result, all such acquired loans that would otherwise meet the criteria for classification as a TDR are excluded from the tables below. The following tables represent, by concession type, the post-modification balance for loans modified or renewed during the three months ended March 31, 2019 and March 31, 2018 that were reported as accruing or non-accruing TDRs. TDRs by Concession Type Three Months Ended March 31, 2019 (in thousands, except contract data) Number of Contracts Below Market Interest Rate Other Concessions (1) Total Commercial, financial and agricultural 13 $ 1,783 $ 899 $ 2,682 Owner-occupied 2 949 — 949 Total commercial and industrial 15 2,732 899 3,631 Investment properties 1 482 — 482 1-4 family properties 6 793 — 793 Total commercial real estate 7 1,275 — 1,275 Consumer mortgages 4 128 1,214 1,342 Home equity lines 1 — 105 105 Other consumer loans 18 108 1,046 1,154 Total consumer 23 236 2,365 2,601 Total TDRs 45 $ 4,243 $ 3,264 $ 7,507 (2) Three Months Ended March 31, 2018 (in thousands, except contract data) Number of Contracts Below Market Interest Rate Other Concessions (1) Total Commercial, financial and agricultural 9 $ — $ 989 $ 989 Owner-occupied 2 2,705 93 2,798 Total commercial and industrial 11 2,705 1,082 3,787 Investment properties 1 — 1,959 1,959 1-4 family properties 6 963 — 963 Total commercial real estate 7 963 1,959 2,922 Consumer mortgages 7 1,733 — 1,733 Other consumer loans 14 537 508 1,045 Total consumer 21 2,270 508 2,778 Total TDRs 39 $ 5,938 $ 3,549 $ 9,487 (3) (1) Other concessions generally include term extensions, interest only payments for a period of time, or principal forgiveness, but there was no principal forgiveness for each of the three months ended March 31, 2019 and 2018. (2) No net charge-offs were recorded during the three months ended March 31, 2019 upon restructuring of these loans. (3) No net charge-offs were recorded during the three months ended March 31, 2018 upon restructuring of these loans. For each of the three months ended March 31, 2019 and 2018, 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). If, at the time a loan was designated as a TDR, the loan was not already impaired, the measurement of impairment that resulted from the TDR designation closely approximates the reserve derived through specific loan measurement of impairment in accordance with ASC 310-10-35. Generally, the change in the allowance for loan losses resulting from such TDR designation is not significant. At March 31, 2019 , the allowance for loan losses allocated to accruing TDRs totaling $112.2 million was $4.7 million compared to accruing TDRs of $115.6 million with an allocated allowance for loan losses of $6.1 million at December 31, 2018 . Non-accrual, non-homogeneous loans (commercial-type impaired loans greater than $1 million ) that are designated as TDRs are individually measured for the amount of impairment, if any, both before and after the TDR designation. As of March 31, 2019 and December 31, 2018 , there were no |