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 June 30, 2021 and December 31, 2020. June 30, 2021 (in thousands) Current Accruing 30-89 Days Past Due Accruing 90 Days or Greater Past Due Total Accruing Past Due Non-accrual with an ALL Non-accrual without an ALL Total Commercial, financial and agricultural $ 12,002,589 $ 11,161 $ 841 $ 12,002 $ 49,197 $ 21,746 $ 12,085,534 Owner-occupied 7,048,621 1,987 836 2,823 13,155 — 7,064,599 Total commercial and industrial 19,051,210 13,148 1,677 14,825 62,352 21,746 19,150,133 Investment properties 9,205,776 7,461 2 7,463 2,367 2,407 9,218,013 1-4 family properties 632,412 1,076 381 1,457 1,982 493 636,344 Land and development 504,270 263 121 384 2,040 — 506,694 Total commercial real estate 10,342,458 8,800 504 9,304 6,389 2,900 10,361,051 Consumer mortgages 5,144,394 4,992 — 4,992 51,376 — 5,200,762 Home equity lines 1,346,562 2,711 — 2,711 8,938 — 1,358,211 Credit cards 282,361 1,524 1,623 3,147 — — 285,508 Other consumer loans 1,858,684 13,731 611 14,342 7,327 — 1,880,353 Total consumer 8,632,001 22,958 2,234 25,192 67,641 — 8,724,834 Loans, net of deferred fees and costs $ 38,025,669 $ 44,906 $ 4,415 $ 49,321 $ 136,382 $ 24,646 $ 38,236,018 December 31, 2020 (in thousands) Current Accruing 30-89 Days Past Due Accruing 90 Days or Greater Past Due Total Accruing Past Due Non-accrual with an ALL Non-accrual without an ALL Total Commercial, financial and agricultural $ 12,321,514 $ 10,256 $ 996 $ 11,252 $ 55,527 $ 21,859 $ 12,410,152 Owner-occupied 7,087,992 1,913 92 2,005 20,019 — 7,110,016 Total commercial and industrial 19,409,506 12,169 1,088 13,257 75,546 21,859 19,520,168 Investment properties 9,075,843 2,751 154 2,905 24,631 — 9,103,379 1-4 family properties 621,492 3,548 36 3,584 2,383 1,236 628,695 Land and development 591,048 422 — 422 1,899 264 593,633 Total commercial real estate 10,288,383 6,721 190 6,911 28,913 1,500 10,325,707 Consumer mortgages 5,495,415 8,851 485 9,336 8,740 — 5,513,491 Home equity lines 1,521,575 4,006 — 4,006 12,145 — 1,537,726 Credit cards 276,778 2,363 1,877 4,240 — — 281,018 Other consumer loans 1,062,899 9,122 477 9,599 2,376 — 1,074,874 Total consumer 8,356,667 24,342 2,839 27,181 23,261 — 8,407,109 Loans, net of deferred fees and costs $ 38,054,556 $ 43,232 $ 4,117 $ 47,349 $ 127,720 $ 23,359 $ 38,252,984 Interest income on non-accrual loans outstanding that would have been recorded if the loans had been current and performing in accordance with their original terms was $2.6 million and $2.8 million for the three months ended June 30, 2021 and 2020, respectively, and $6.0 million and $4.9 million for the six months ended June 30, 2021 and 2020, respectively. Of the interest income recognized during the three months ended June 30, 2021 and 2020, cash-basis interest income was $538 thousand and $484 thousand, respectively. Cash-basis interest income was $1.2 million and $1.4 million for the six months ended June 30, 2021 and 2020, respectively. Pledged Loans Loans with carrying values of $14.29 billion and $15.05 billion, respectively, were pledged as collateral for borrowings and capacity at June 30, 2021 and December 31, 2020, respectively, to the FHLB and Federal Reserve Bank. Portfolio Segment Risk Factors The risk characteristics and collateral information of each portfolio segment are as follows: Commercial and Industrial Loans - The C&I loan portfolio is comprised of general middle market and commercial banking clients across a diverse set of industries. In accordance with Synovus' lending policy, each loan undergoes a detailed underwriting process which incorporates uniform underwriting standards and oversight in proportion to the size and complexity of the lending relationship. These loans are secured by collateral such as business equipment, inventory, and real estate. Whether for real estate or non-real estate purpose, credit decisions on loans in the C&I portfolio are based on cash flow from the operations of the business as the primary source of repayment of the debt, with underlying real estate or other collateral being the secondary source of repayment . PPP loans, which are categorized as C&I loans, were $1.60 billion at June 30, 2021 and are guaranteed by the SBA. Commercial Real Estate Loans - CRE loans primarily consist of income-producing investment properties loans. Additionally, CRE loans include 1-4 family properties loans as well as land and development loans. Investment properties loans consist of construction and mortgage loans for income-producing properties and are primarily made to finance multi-family properties, hotels, office buildings, shopping centers, warehouses and other commercial development properties. 1-4 family properties loans include construction loans to homebuilders and commercial mortgage loans related to 1-4 family rental properties and are almost always secured by the underlying property being financed by such loans. These properties are primarily located in the markets served by Synovus. Land and development loans include commercial and residential development as well as land acquisition loans and are secured by land held for future development, typically in excess of one year. Properties securing these loans are substantially within markets served by Synovus, and loan terms generally include personal guarantees from the principals. Loans in this portfolio are underwritten based on the LTV of the collateral and the capacity of the guarantor(s). Consumer Loans - The consumer loan portfolio consists of a wide variety of loan products offered through Synovus' banking network including first and second residential mortgages, HELOCs, and credit card loans, as well as home improvement loans, student, personal, and auto loans from third-party lending. The majority of Synovus' consumer loans are consumer mortgages and HELOCs secured by first and second liens on residential real estate primarily located in the markets served by Synovus. The primary source of repayment for all consumer loans is generally the personal income of the borrower(s). Credit Quality Indicators The credit quality of the loan portfolio is reviewed and updated no less frequently than annually using the standard asset classification system utilized by the federal banking agencies. These classifications are divided into three groups: Not Criticized (Pass), Special Mention, and Classified or Adverse rating (Substandard, Doubtful, and Loss) and are defined as follows: Pass - loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell in a timely manner, of any underlying collateral. Special Mention - loans which have potential weaknesses that deserve management's close attention. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant an adverse classification. Substandard - loans which are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans with this classification are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful - loans which have all the weaknesses inherent in loans categorized as Substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently known facts, conditions, and values. Loss - loans which are considered by management to be uncollectible and of such little value that their continuance on the institution's books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. Synovus fully reserves for any loans rated as Loss. In the following tables, consumer loans are generally assigned a risk grade similar to the classifications described above; however, upon reaching 90 days and 120 days past due, they are generally downgraded to Substandard and Loss, respectively, in accordance with the FFIEC Retail Credit Classification Policy. Additionally, in accordance with Interagency Supervisory Guidance, the risk grade classifications of consumer loans (consumer mortgages and HELOCs) secured by junior liens on 1-4 family residential properties also consider available information on the payment status of any associated senior liens with other financial institutions. The following tables summarize each loan portfolio class by risk grade and origination year as of June 30, 2021 and December 31, 2020 as required under CECL. June 30, 2021 Term Loans Amortized Cost Basis by Origination Year Revolving Loans (in thousands) 2021 2020 2019 2018 2017 Prior Amortized Cost Basis Converted to Term Loans Total Commercial, financial and agricultural Pass $ 1,515,420 $ 2,149,994 $ 1,144,130 $ 755,925 $ 519,704 $ 1,118,928 $ 4,332,632 $ 44,177 $ 11,580,910 Special Mention 1,482 67,377 46,077 11,516 17,074 3,424 78,717 440 226,107 Substandard (1) 7,706 58,956 37,439 12,201 20,766 39,323 82,883 2,085 261,359 Doubtful (2) 449 512 2,776 13,132 — — 289 — 17,158 Total commercial, financial and agricultural 1,525,057 2,276,839 1,230,422 792,774 557,544 1,161,675 4,494,521 46,702 12,085,534 Owner-occupied Pass 667,812 1,293,871 1,226,446 1,041,975 829,705 1,403,658 387,603 — 6,851,070 Special Mention 680 4,294 11,397 16,291 3,326 22,395 8,180 — 66,563 Substandard (1) 721 3,546 26,400 51,240 28,277 30,440 — — 140,624 Doubtful (2) — — — 6,342 — — — — 6,342 Total owner-occupied 669,213 1,301,711 1,264,243 1,115,848 861,308 1,456,493 395,783 — 7,064,599 Total commercial and industrial 2,194,270 3,578,550 2,494,665 1,908,622 1,418,852 2,618,168 4,890,304 46,702 19,150,133 Investment properties Pass 637,057 1,342,718 2,226,278 1,507,075 872,163 1,606,709 289,261 — 8,481,261 Special Mention — 1,032 80,673 152,823 107,557 207,195 57,204 — 606,484 Substandard (1) 7,435 334 9,843 56,177 18,136 38,203 140 — 130,268 Total investment properties 644,492 1,344,084 2,316,794 1,716,075 997,856 1,852,107 346,605 — 9,218,013 1-4 family properties Pass 157,416 136,528 66,762 55,745 70,774 88,755 48,205 — 624,185 Special Mention 491 158 — 365 — 248 — — 1,262 Substandard (1) 1,745 108 437 4,723 926 2,360 598 — 10,897 Total 1-4 family properties 159,652 136,794 67,199 60,833 71,700 91,363 48,803 — 636,344 June 30, 2021 Term Loans Amortized Cost Basis by Origination Year Revolving Loans (in thousands) 2021 2020 2019 2018 2017 Prior Amortized Cost Basis Converted to Term Loans Total Land and development Pass 57,117 67,046 120,637 74,328 64,803 72,639 35,548 — 492,118 Special Mention — 834 1,948 2,369 24 997 — — 6,172 Substandard (1) — 1,233 48 3,231 881 3,011 — — 8,404 Total land and development 57,117 69,113 122,633 79,928 65,708 76,647 35,548 — 506,694 Total commercial real estate 861,261 1,549,991 2,506,626 1,856,836 1,135,264 2,020,117 430,956 — 10,361,051 Consumer mortgages Pass 624,582 1,735,940 730,083 303,577 517,050 1,227,662 965 — 5,139,859 Substandard (1) 203 148 2,114 14,037 5,757 38,421 — — 60,680 Loss (3) — — — — — 223 — — 223 Total consumer mortgages 624,785 1,736,088 732,197 317,614 522,807 1,266,306 965 — 5,200,762 Home equity lines Pass — — — — — — 1,264,828 77,373 1,342,201 Substandard (1) — — — — — — 9,708 5,376 15,084 Doubtful (2) — — — — — — — 18 18 Loss (3) — — — — — — 766 142 908 Total home equity lines — — — — — — 1,275,302 82,909 1,358,211 Credit cards Pass — — — — — — 283,887 — 283,887 Substandard (1) — — — — — — 409 — 409 Loss (4) — — — — — — 1,212 — 1,212 Total credit cards — — — — — — 285,508 — 285,508 Other consumer loans Pass 220,495 873,734 182,445 68,046 80,624 118,009 328,734 — 1,872,087 Substandard (1) 213 552 2,232 1,483 2,774 766 234 — 8,254 Loss (4) — — — — — 12 — — 12 Total other consumer loans 220,708 874,286 184,677 69,529 83,398 118,787 328,968 — 1,880,353 Total consumer 845,493 2,610,374 916,874 387,143 606,205 1,385,093 1,890,743 82,909 8,724,834 Loans, net of deferred fees and costs $ 3,901,024 $ 7,738,915 $ 5,918,165 $ 4,152,601 $ 3,160,321 $ 6,023,378 $ 7,212,003 $ 129,611 $ 38,236,018 (1) The majority of loans within Substandard risk grade are accruing loans at June 30, 2021. (2) Loans within Doubtful risk grade are on non-accrual status and generally have an ALL equal to 50% of the loan amount. (3) Loans within Loss risk grade are on non-accrual status and have an ALL equal to the full loan amount. (4) Represent amounts that were 120 days past due. These credits are downgraded to the Loss category with an ALL equal to the full loan amount and are generally charged off upon reaching 181 days past due in accordance with the FFIEC Retail Credit Classification Policy. December 31, 2020 Term Loans Amortized Cost Basis by Origination Year Revolving Loans (in thousands) 2020 2019 2018 2017 2016 Prior Amortized Cost Basis Converted to Term Loans Total Commercial, financial and agricultural Pass $ 3,819,048 $ 1,333,460 $ 847,283 $ 582,612 $ 551,413 $ 633,871 $ 4,102,751 $ 49,762 $ 11,920,200 Special Mention 63,307 40,618 12,723 22,070 1,665 5,545 60,741 489 207,158 Substandard (1) 28,698 36,618 24,867 36,072 12,808 35,172 84,498 514 259,247 Doubtful (2) — 3,721 19,778 — — — 48 — 23,547 Total commercial, financial and agricultural 3,911,053 1,414,417 904,651 640,754 565,886 674,588 4,248,038 50,765 12,410,152 Owner-occupied Pass 1,321,680 1,275,435 1,131,183 982,056 555,932 1,297,070 349,566 — 6,912,922 Special Mention 6,170 9,995 10,682 14,138 1,582 13,768 — — 56,335 Substandard (1) 2,570 22,793 42,615 26,033 7,316 29,794 — — 131,121 Doubtful (2) — — 9,638 — — — — — 9,638 Total owner-occupied 1,330,420 1,308,223 1,194,118 1,022,227 564,830 1,340,632 349,566 — 7,110,016 Total commercial and industrial 5,241,473 2,722,640 2,098,769 1,662,981 1,130,716 2,015,220 4,597,604 50,765 19,520,168 Investment properties Pass 1,055,440 2,126,667 1,999,345 1,091,880 483,780 1,301,088 229,044 — 8,287,244 Special Mention 1,482 66,160 176,794 136,004 138,362 129,401 55,440 — 703,643 Substandard (1) 1,007 4,770 24,476 19,820 21,875 40,509 35 — 112,492 Total investment properties 1,057,929 2,197,597 2,200,615 1,247,704 644,017 1,470,998 284,519 — 9,103,379 1-4 family properties Pass 197,320 95,145 70,267 88,454 38,729 97,374 27,657 — 614,946 Special Mention 402 — 508 109 786 118 — — 1,923 Substandard (1) 1,527 653 4,312 1,141 554 2,299 1,340 — 11,826 Total 1-4 family properties 199,249 95,798 75,087 89,704 40,069 99,791 28,997 — 628,695 Land and development Pass 84,985 173,302 83,734 92,911 12,249 76,380 53,250 — 576,811 Special Mention 857 1,995 2,866 282 — 1,332 636 — 7,968 Substandard (1) 1,229 425 4,664 915 136 1,485 — — 8,854 Total land and development 87,071 175,722 91,264 94,108 12,385 79,197 53,886 — 593,633 Total commercial real estate 1,344,249 2,469,117 2,366,966 1,431,516 696,471 1,649,986 367,402 — 10,325,707 December 31, 2020 Term Loans Amortized Cost Basis by Origination Year Revolving Loans (in thousands) 2020 2019 2018 2017 2016 Prior Amortized Cost Basis Converted to Term Loans Total Consumer mortgages Pass 1,871,512 874,769 425,711 678,255 685,810 965,382 1,040 — 5,502,479 Substandard (1) 33 961 748 889 866 7,224 — — 10,721 Loss (3) — — — — — 291 — — 291 Total consumer mortgages 1,871,545 875,730 426,459 679,144 686,676 972,897 1,040 — 5,513,491 Home equity lines Pass — — — — — — 1,429,755 90,832 1,520,587 Substandard (1) — — — — — — 9,698 5,996 15,694 Doubtful (2) — — — — — — — 19 19 Loss (3) — — — — — — 1,283 143 1,426 Total home equity lines — — — — — — 1,440,736 96,990 1,537,726 Credit cards Pass — — — — — — 279,142 — 279,142 Substandard (1) — — — — — — 595 — 595 Loss (4) — — — — — — 1,281 — 1,281 Total credit cards — — — — — — 281,018 — 281,018 Other consumer loans Pass 252,160 190,820 89,187 100,459 80,365 61,040 297,637 — 1,071,668 Substandard (1) 19 762 262 1,195 121 585 227 — 3,171 Loss (4) — — — — — 35 — — 35 Total other consumer loans 252,179 191,582 89,449 101,654 80,486 61,660 297,864 — 1,074,874 Total consumer 2,123,724 1,067,312 515,908 780,798 767,162 1,034,557 2,020,658 96,990 8,407,109 Loans, net of deferred fees and costs $ 8,709,446 $ 6,259,069 $ 4,981,643 $ 3,875,295 $ 2,594,349 $ 4,699,763 $ 6,985,664 $ 147,755 $ 38,252,984 (1) The majority of loans within Substandard risk grade are accruing loans at December 31, 2020. (2) Loans within Doubtful risk grade are on non-accrual status and generally have an ALL equal to 50% of the loan amount. (3) Loans within Loss risk grade are on non-accrual status and have an ALL equal to the full loan amount. (4) Represent amounts that were 120 days past due. These credits are downgraded to the Loss category with an ALL equal to the full loan amount and are generally charged off upon reaching 181 days past due in accordance with the FFIEC Retail Credit Classification Policy. Collateral-Dependent Loans We classify a loan as collateral-dependent when our borrower is experiencing financial difficulty, and we expect repayment to be provided substantially through the operation or sale of collateral. Our commercial loans have collateral that is comprised of real estate and business assets. Our consumer loans have collateral that is substantially comprised of residential real estate. There were no significant changes in the extent to which collateral secures our collateral-dependent loans during the three and six months ended June 30, 2021. Rollforward of Allowance for Loan Losses The following tables detail the changes in the ALL by loan segment for the three and six months ended June 30, 2021 and 2020. As Of and For the Three Months Ended June 30, 2021 (in thousands) Commercial & Industrial Commercial Real Estate Consumer Total Allowance for loan losses: Beginning balance at March 31, 2021 $ 254,777 $ 113,812 $ 194,625 $ 563,214 Charge-offs (18,729) (3,839) (8,285) (30,853) Recoveries 1,495 377 2,435 4,307 (Reversal of) provision for loan losses 17,395 (18,237) (19,118) (19,960) Ending balance at June 30, 2021 $ 254,938 $ 92,113 $ 169,657 $ 516,708 As Of and For the Three Months Ended June 30, 2020 (in thousands) Commercial & Industrial Commercial Real Estate Consumer Total Allowance for loan losses: Beginning balance at March 31, 2020 $ 216,950 $ 107,117 $ 169,385 $ 493,452 Charge-offs (23,245) (689) (6,844) (30,778) Recoveries 3,261 536 2,935 6,732 Provision for loan losses 32,949 64,562 21,731 119,242 Ending balance at June 30, 2020 $ 229,915 $ 171,526 $ 187,207 $ 588,648 As Of and For the Six Months Ended June 30, 2021 (in thousands) Commercial & Industrial Commercial Real Estate Consumer Total Allowance for loan losses: Beginning balance at December 31, 2020 $ 229,555 $ 130,742 $ 245,439 $ 605,736 Charge-offs (28,146) (14,158) (13,874) (56,178) Recoveries 4,267 1,403 3,758 9,428 (Reversal of) provision for loan losses 49,262 (25,874) (65,666) (42,278) Ending balance at June 30, 2021 $ 254,938 $ 92,113 $ 169,657 $ 516,708 As Of and For the Six Months Ended June 30, 2020 (in thousands) Commercial & Industrial Commercial Real Estate Consumer Total Allowance for loan losses: Beginning balance at December 31, 2019 $ 145,782 $ 67,430 $ 68,190 $ 281,402 Impact from adoption of ASC 326 (2,310) (651) 85,955 82,994 Beginning balance, after adoption of ASC 326, at January 1, 2020 $ 143,472 $ 66,779 $ 154,145 $ 364,396 Charge-offs (38,130) (1,706) (14,816) (54,652) Recoveries 5,002 935 4,608 10,545 Provision for loan losses 119,571 105,518 43,270 268,359 Ending balance at June 30, 2020 $ 229,915 $ 171,526 $ 187,207 $ 588,648 The ALL of $516.7 million and the reserve for unfunded commitments of $46.9 million, which is recorded in other liabilities, comprise the total ACL of $563.6 million at June 30, 2021. The ACL decreased $89.9 million from December 31, 2020, resulting in an ACL to loans coverage ratio of 1.47% at June 30, 2021. The ACL is estimated using a two-year reasonable and supportable forecast period. To the extent the lives of the loans in the portfolio extend beyond the period for which a reasonable and supportable forecast can be made, the Company reverts on a straight-line basis back to the historical rates over a one-year period. Synovus utilizes multiple economic forecast scenarios sourced from a reputable third-party provider and probability-weighted internally. The scenarios include a baseline forecast representing management's view, an upside scenario reflecting an accelerated economic recovery, and two downside scenarios with increasingly adverse economic outcomes. At June 30, 2021, economic scenario weights incorporated a 40% downside bias, consistent with March 31, 2021. The baseline outlook used in the June 30, 2021 estimate showed improving economic conditions with the unemployment rate declining to 4.5% by the end of 2021, compared to the first quarter of 2021’s ACL estimate which had the unemployment rate at 5.7% by the end of 2021. Reversal of provision for credit losses includes the reversals of provisions for loan losses and unfunded commitments. The reversal of provision for credit losses of $24.6 million and $43.2 million for the three and six months ended June 30, 2021, respectively, included net charge-offs of $26.5 million and $46.8 million, respectively. The reversal of provision for credit losses and related reduction in the ACL primarily resulted from the continued improvement in the economic forecast for pooled loans and the reduction in the individually analyzed reserve as a result of charge-offs of pre-existing reserves that were not replaced. This was partially offset by $10.6 million and $25.8 million in reserves added as a result of purchases of $434.6 million and $1.04 billion of third-party lending loans for the three and six months ended June 30, 2021, respectively. TDRs Information about Synovus' TDRs is presented in the following tables. Synovus began entering into loan modifications with borrowers in response to the COVID-19 pandemic, some of which have not been classified as TDRs, and therefore are not included in the discussion below. See "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 - Summary of Significant Accounting Policies" in Synovus' 2020 Form 10-K for information on Synovus' loan modifications due to COVID-19. The following tables represent, by concession type, the post-modification balance for loans modified or renewed during the three and six months ended June 30, 2021 and 2020 that were reported as accruing or non-accruing TDRs. TDRs by Concession Type Three Months Ended June 30, 2021 (in thousands, except contract data) Number of Contracts Below Market Interest Rate Other Concessions (1) Total Commercial, financial and agricultural 18 $ 1,770 $ 1,174 $ 2,944 Owner-occupied 5 1,155 — 1,155 Total commercial and industrial 23 2,925 1,174 4,099 Investment properties 1 419 — 419 1-4 family properties 2 158 — 158 Land and development 1 366 — 366 Total commercial real estate 4 943 — 943 Consumer mortgages 2 331 — 331 Home equity lines 14 900 96 996 Other consumer loans 13 187 245 432 Total consumer 29 1,418 341 1,759 Total TDRs 56 $ 5,286 $ 1,515 $ 6,801 (2) Three Months Ended June 30, 2020 (in thousands, except contract data) Number of Contracts Below Market Interest Rate Other Concessions (1) Total Commercial, financial and agricultural 40 $ 1,503 $ 2,000 $ 3,503 Owner-occupied 7 453 1,434 1,887 Total commercial and industrial 47 1,956 3,434 5,390 Investment properties 2 5,599 — 5,599 1-4 family properties 4 69 549 618 Land and development 1 91 — 91 Total commercial real estate 7 5,759 549 6,308 Consumer mortgages 10 556 1,482 2,038 Home equity lines 14 181 918 1,099 Other consumer loans 18 19 798 817 Total consumer 42 756 3,198 3,954 Total TDRs 96 $ 8,471 $ 7,181 $ 15,652 (3) (1) Other concessions generally include term extensions, interest only payments for a period of time, or principal forgiveness, but there was no principal forgiveness for the three months ending June 30, 2021 and 2020. (2) No net charge-offs were recorded during the three months ended June 30, 2021 . (3) No net charge-offs were recorded during the three months ended June 30, 2020 . Six Months Ended June 30, 2021 (in thousands, except contract data) Number of Contracts Below Market Interest Rate Other Concessions (1) Total Commercial, financial and agricultural 58 $ 5,002 $ 3,737 $ 8,739 Owner-occupied 10 2,409 399 2,808 Total commercial and industrial 68 7,411 4,136 11,547 Investment properties 6 2,402 — 2,402 1-4 family properties 7 621 39 660 Land and development 2 366 43 409 Total commercial real estate 15 3,389 82 3,471 Consumer mortgages 2 331 — 331 Home equity lines 27 1,487 258 1,745 Other consumer loans 86 316 4,864 5,180 Total consumer 115 2,134 5,122 7,256 Total TDRs 198 $ 12,934 $ 9,340 $ 22,274 (2) Six Months Ended June 30, 2020 (in thousands, except contract data) Number of Contracts Below Market Interest Rate Other Concessions (1) Total Commercial, financial and agricultural 76 $ 5,226 $ 4,011 $ 9,237 Owner-occupied 12 1,821 1,530 3,351 Total commercial and industrial 88 7,047 5,541 12,588 Investment properties 4 28,669 — 28,669 1-4 family properties 10 793 991 1,784 Land and development 2 541 — 541 Total commercial real estate 16 30,003 991 30,994 Consumer mortgages 16 1,072 2,566 3,638 Home equity lines 33 455 1,882 2,337 Other consumer loans 47 97 2,694 2,791 Total consumer 96 1,624 7,142 8,766 Total TDRs 200 $ 38,674 $ 13,674 $ 52,348 (3) (1) Other concessions generally include term extensions, interest only payments for a period of time, or principal forgiveness, but there was no principal forgiveness for the six months ending June 30, 2021 and 2020. (2) No net charge-offs were recorded during the six months ended June 30, 2021 . (3) No net charge-offs were recorded during the six months ended June 30, 2020 . For both the three and six months ended June 30, 2021 there were five defaults with a recorded investment of $172 thousand on accruing TDRs restructured during the previous twelve months (defaults are defined as the earlier of the TDR being placed on non-accrual status or reaching 90 days past due with respect to principal and/or interest payments) compared to one default with a recorded investment of $27 thousand and four defaults with a recorded investment of $645 thousand, respectively, for the three and six months ended June 30, 2020. As of June 30, 2021 and December 31, 2020, there were no commitments to lend a material amount of additional funds to any customer whose loan was classified as a TDR. |