| 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 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 Weighted Average Payment Delay Weighted Average Interest Rate Reduction Weighted Average Term Extension Weighted Average Payment Delay 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 Weighted Average Payment Deferral Principal Forgiveness and Term Extensions Weighted Average Interest Rate Reduction Weighted Average Term Extension Weighted Average Payment Deferral 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) |
