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 December 31, 2024 and 2023. December 31, 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 $ 14,352,839 $ 12,947 $ 10,332 $ 23,279 $ 98,145 $ 24,729 $ 14,498,992 Owner-occupied 7,754,052 7,700 36,005 43,705 21,119 13,261 7,832,137 Total commercial and industrial (1) 22,106,891 20,647 46,337 66,984 119,264 37,990 22,331,129 Investment properties 11,105,168 2,006 — 2,006 74,030 — 11,181,204 1-4 family properties 541,897 1,636 — 1,636 2,385 — 545,918 Land and development 284,793 1,113 202 1,315 1,389 — 287,497 Total commercial real estate 11,931,858 4,755 202 4,957 77,804 — 12,014,619 Consumer mortgages 5,228,580 9,362 — 9,362 50,834 — 5,288,776 Home equity 1,800,614 13,131 177 13,308 17,365 — 1,831,287 Credit cards 182,435 1,573 1,863 3,436 — — 185,871 Other consumer loans 940,608 10,818 13 10,831 5,907 — 957,346 Total consumer 8,152,237 34,884 2,053 36,937 74,106 — 8,263,280 Loans, net of deferred fees and costs (2)(3) $ 42,190,986 $ 60,286 $ 48,592 $ 108,878 $ 271,174 $ 37,990 $ 42,609,028 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)(3) $ 43,057,214 $ 54,046 $ 5,053 $ 59,099 $ 216,667 $ 71,510 $ 43,404,490 (1) Includes senior housing loans of $2.94 billion and $3.28 billion at December 31, 2024 and 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 $217.1 million and $256.3 million at December 31, 2024 and 2023, respectively, which is presented as a component of other assets (3) Loans are presented net of deferred loan fees and costs totaling $34.1 million and $35.9 million at December 31, 2024 and 2023, respectively. Pledged Loans Loans with carrying values of $24.66 billion and $24.31 billion, respectively, were pledged as collateral for borrowings and capacity at December 31, 2024 and 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 generally 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 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) secured by junior liens on 1-4 family residential properties also consider available information on the payment status of the associated senior liens with other financial institutions. The following tables summarize each loan portfolio class by regulatory risk grade and origination year as of December 31, 2024 and 2023 as required by CECL. December 31, 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 $ 1,200,861 $ 1,001,989 $ 739,134 $ 1,195,316 $ 629,109 $ 1,586,291 $ 7,372,228 $ 81,796 $ 13,806,724 Special Mention 1,555 20,255 17,775 18,403 2,464 36,817 158,968 — 256,237 Substandard 20,920 12,397 59,487 14,694 39,482 17,028 258,070 493 422,571 Doubtful — — — 5,911 — 1,869 5,145 — 12,925 Loss — — — — — — 535 — 535 Total commercial, financial, and agricultural 1,223,336 1,034,641 816,396 1,234,324 671,055 1,642,005 7,794,946 82,289 14,498,992 Current YTD Period: Gross charge-offs 7,696 16,499 3,786 8,787 997 4,413 53,736 — 95,914 Owner-occupied Pass 691,899 981,593 1,468,946 1,220,421 872,744 1,621,387 619,519 — 7,476,509 Special Mention 1,099 2,466 65,733 5,397 34,244 12,621 — — 121,560 Substandard 2,568 5,838 34,147 20,698 49,766 65,147 55,904 — 234,068 Total owner-occupied 695,566 989,897 1,568,826 1,246,516 956,754 1,699,155 675,423 — 7,832,137 Current YTD Period: Gross charge-offs — 76 543 304 1,567 17,558 3,426 — 23,474 Total commercial and industrial 1,918,902 2,024,538 2,385,222 2,480,840 1,627,809 3,341,160 8,470,369 82,289 22,331,129 Current YTD Period: Gross charge-offs $ 7,696 $ 16,575 $ 4,329 $ 9,091 $ 2,564 $ 21,971 $ 57,162 $ — $ 119,388 Investment properties Pass 769,775 642,808 3,306,914 2,406,325 898,363 2,405,650 227,460 — 10,657,295 Special Mention 4,583 2,211 97,443 200,780 — 68,559 — — 373,576 Substandard — 1,689 10,093 83,795 1,466 13,884 — — 110,927 Doubtful — — — 39,401 — — — — 39,401 Loss — — — — — 5 — — 5 Total investment properties 774,358 646,708 3,414,450 2,730,301 899,829 2,488,098 227,460 — 11,181,204 Current YTD Period: Gross charge-offs — — 527 4,752 — 4,602 — — 9,881 1-4 family properties Pass 159,008 79,094 95,050 81,630 28,845 53,167 40,133 — 536,927 Special Mention — — 1,060 663 169 1,300 — — 3,192 Substandard 919 840 1,618 233 287 1,857 45 — 5,799 Total 1-4 family properties 159,927 79,934 97,728 82,526 29,301 56,324 40,178 — 545,918 Current YTD Period: Gross charge-offs — 103 — — — 143 — — 246 Land and development Pass 55,564 87,465 54,214 26,002 4,933 41,749 14,798 — 284,725 Special Mention — 138 — 25 — 390 — — 553 Substandard — 1,347 — — 153 719 — — 2,219 Total land and development 55,564 88,950 54,214 26,027 5,086 42,858 14,798 — 287,497 Current YTD Period: Gross charge-offs — — — — 35 22 — — 57 Total commercial real estate 989,849 815,592 3,566,392 2,838,854 934,216 2,587,280 282,436 — 12,014,619 Current YTD Period: Gross charge-offs $ — $ 103 $ 527 $ 4,752 $ 35 $ 4,767 $ — $ — $ 10,184 December 31, 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 Consumer mortgages Pass 457,176 681,844 670,652 947,395 1,119,610 1,341,463 25 — 5,218,165 Substandard 190 1,872 5,590 7,117 17,918 37,895 — — 70,582 Loss — — — — — 29 — — 29 Total consumer mortgages 457,366 683,716 676,242 954,512 1,137,528 1,379,387 25 — 5,288,776 Current YTD Period: Gross charge-offs — 11 — 3 30 122 — — 166 Home equity Pass — — — — — — 1,386,370 424,891 1,811,261 Substandard — — — — — — 11,464 7,729 19,193 Loss — — — — — — 554 279 833 Total home equity — — — — — — 1,398,388 432,899 1,831,287 Current YTD Period: Gross charge-offs — — — — — — 230 106 336 Credit cards Pass — — — — — — 184,061 — 184,061 Substandard — — — — — — 701 — 701 Loss — — — — — — 1,109 — 1,109 Total credit cards — — — — — — 185,871 — 185,871 Current YTD Period: Gross charge-offs — — — — — — 7,153 — 7,153 Other consumer loans Pass 150,051 81,087 119,274 144,297 78,961 91,802 284,801 — 950,273 Substandard 310 1,046 1,298 2,692 1,132 524 59 — 7,061 Loss — — — — — — 12 — 12 Total other consumer loans 150,361 82,133 120,572 146,989 80,093 92,326 284,872 — 957,346 Current YTD Period: Gross charge-offs 576 3,740 4,840 7,601 2,140 2,509 2,315 — 23,721 Total consumer 607,727 765,849 796,814 1,101,501 1,217,621 1,471,713 1,869,156 432,899 8,263,280 Current YTD Period: Gross charge-offs $ 576 $ 3,751 $ 4,840 $ 7,604 $ 2,170 $ 2,631 $ 9,698 $ 106 $ 31,376 Loans, net of deferred fees and costs $ 3,516,478 $ 3,605,979 $ 6,748,428 $ 6,421,195 $ 3,779,646 $ 7,400,153 $ 10,621,961 $ 515,188 $ 42,609,028 Current YTD Period: Gross charge-offs $ 8,272 $ 20,429 $ 9,696 $ 21,447 $ 4,769 $ 29,369 $ 66,860 $ 106 $ 160,948 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 Loan, 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 significant changes in the extent to which collateral secures our collateral-dependent loans during the years ended December 31, 2024 and 2023. Rollforward of Allowance for Loan Losses The following tables detail the changes in the ALL by loan segment for the years ended December 31, 2024, 2023, and 2022. For the year ended December 31, 2023, Synovus charged-off $31.3 million in previously established reserves for credit losses associated with the transfer of $1.59 billion in loans to held for sale for the sales of medical office building loans and third-party consumer loans that both closed in 2023. For the years ended December 31, 2024 and 2022 , Synovus had no significant transfers to loans held for sale. As of and For The Year Ended December 31, 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 (119,388) (10,184) (31,376) (160,948) Recoveries 17,084 1,905 7,965 26,954 Provision for (reversal of) loan losses 93,859 8,542 39,053 141,454 Ending balance at December 31, 2024 $ 210,525 $ 134,021 $ 142,299 $ 486,845 As of and For The Year Ended December 31, 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 (86,320) (45,450) (51,304) (183,074) Recoveries 16,664 1,273 11,795 29,732 Provision for (reversal of) loan losses 127,076 34,360 27,867 189,303 Ending balance at December 31, 2023 $ 218,970 $ 133,758 $ 126,657 $ 479,385 As of and For The Year Ended December 31, 2022 (in thousands) Commercial & Industrial Commercial Real Estate Consumer Total Allowance for loan losses: Beginning balance at December 31, 2021 $ 188,364 $ 97,760 $ 141,473 $ 427,597 Charge-offs (42,588) (3,102) (38,020) (83,710) Recoveries 14,625 1,633 14,296 30,554 Provision for (reversal of) loan losses 1,149 47,284 20,550 68,983 Ending balance at December 31, 2022 $ 161,550 $ 143,575 $ 138,299 $ 443,424 The ALL of $486.8 million and the reserve on unfunded commitments of $52.5 million, which is recorded in other liabilities, comprise the total ACL of $539.3 million at December 31, 2024. The ACL increased $2.7 million compared to the December 31, 2023 ACL of $536.6 million , which consisted of an ALL of $479.4 million and the reserve on unfunded commitments of $57.2 million. The ACL to loans coverage ratio of 1.27% at December 31, 2024 was 3 bps higher compared to December 31, 2023. The increase in the ACL from December 31, 2023 resulted primarily from the continuation of an uncertain economic outlook, as well as increased defaults. The Company includes adjustments, as appropriate, intended to capture the impact of uncertainties in the quantitative estimate. The ALL at December 31, 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 December 31, 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 4.6% over the forecast period at December 31, 2024, compared to 4.5% at 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. The following tables present the amortized cost of FDM loans by loan portfolio class that were modified during the years ended December 31, 2024 and 2023 . Year Ended December 31, 2024 (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 $ — $ 10,606 $ — $ — $ 10,606 0.1 % Owner-occupied — 183 — — 13,686 13,869 0.2 Total commercial and industrial — 10,789 — — 13,686 24,475 0.1 Investment properties 74,675 2,222 — — — 76,897 0.7 Total commercial real estate 74,675 2,222 — — — 76,897 0.6 Consumer mortgages 122 — — 1,878 — 2,000 — Other consumer loans 179 582 — 4 23 788 0.1 Total consumer 301 582 — 1,882 23 2,788 — Total FDMs $ 74,976 $ 13,593 $ — $ 1,882 $ 13,709 $ 104,160 0.2 % Year Ended December 31, 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 $ 2,844 $ 119,764 $ 10,504 $ — $ 2,028 $ 135,140 0.9 % Owner-occupied — 23,739 — — 52,854 76,593 0.9 Total commercial and industrial 2,844 143,503 10,504 — 54,882 211,733 0.9 Investment properties — 909 — — — 909 — 1-4 family properties — 2,016 — — 367 2,383 0.4 Land and development — 29,760 — — — 29,760 8.4 Total commercial real estate — 32,685 — — 367 33,052 0.3 Consumer mortgages 2,110 — — 465 — 2,575 — Home equity — 336 — — 287 623 — Other consumer loans 115 625 — 189 617 1,546 0.1 Total consumer 2,225 961 — 654 904 4,744 0.1 Total FDMs $ 5,069 $ 177,149 $ 10,504 $ 654 $ 56,153 $ 249,529 0.6 % During the year ended December 31, 2024, commercial, financial, and agricultural loans of $3.2 million defaulted that were previously modified in the prior 12 months by receiving a term extension . During the year ended December 31, 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 December 31, 2024 and 2023, there were no commitments to lend a material amount of additional funds to any borrower whose loan was classified as an FDM . The following presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the years ended December 31, 2024 and 2023. Year Ended December 31, 2024 (Dollars in thousands) Weighted Average Interest Rate Reduction Weighted Average Term Extension Weighted Average Payment Delay Commercial, financial, and agricultural — % 12 — Owner-occupied 2.4 5 — Investment properties 1.9 12 — Consumer mortgages 2.3 — 5.5 Home equity — — — Other consumer loans 4.2 75 6 Year Ended December 31, 2023 (Dollars in thousands) Principal Forgiveness and Term Extensions Weighted Average Interest Rate Reduction Weighted Average Term Extension Weighted Average Payment Delay Commercial, financial, and agricultural $ 1,200 2.4 % 14 — Owner-occupied — 2.3 10 — Investment properties — — 40 — 1-4 family properties — 0.4 12 — Land and development — — 4 — Consumer mortgages — 2.3 — 6 Home equity — 0.5 249 — Other consumer loans — 5.7 62 2 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 year ended December 31, 2024. December 31, 2024 (in thousands) Current Accruing 30-89 Days Past Due Accruing 90 Days or Greater Past Due Non-accrual (1) Total Commercial, financial, and agricultural $ 9,896 $ 540 $ — $ 170 $ 10,606 Owner-occupied 13,686 — — 183 13,869 Total commercial and industrial 23,582 540 — 353 24,475 Investment properties 44,115 — — 32,782 76,897 Total commercial real estate 44,115 — — 32,782 76,897 Consumer mortgages 210 — — 1,790 2,000 Other consumer loans 397 106 — 285 788 Total consumer 607 106 — 2,075 2,788 Total FDMs $ 68,304 $ 646 $ — $ 35,210 $ 104,160 (1) Loans were on non-accrual when modified and subsequently classified as FDMs. 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 since January 1, 2023, the date Synovus adopted ASU 2022-02 through December 31, 2023. December 31, 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 $ 123,843 $ — $ — $ 11,297 $ 135,140 Owner-occupied 75,859 — — 734 76,593 Total commercial and industrial 199,702 — — 12,031 211,733 Investment properties 604 — — 305 909 1-4 family properties 1,174 — — 1,209 2,383 Land and development 29,760 — — — 29,760 Total commercial real estate 31,538 — — 1,514 33,052 Consumer mortgages 1,423 — — 1,152 2,575 Home equity 623 — — — 623 Other consumer loans 418 372 — 756 1,546 Total consumer 2,464 372 — 1,908 4,744 Total FDMs $ 233,704 $ 372 $ — $ 15,453 $ 249,529 (1) Loans were on non-accrual when modified and subsequently classified as FDMs. TDR Disclosures Prior to Adoption of ASU 2022-02 Prior to the adoption of ASU 2022-02, Synovus accounted for a modification to the contractual terms of a loan that resulted in granting concessions to a borrower experiencing financial difficulties as a TDR. The following table presents, by concession type, the post-modification balance for loans modified or renewed during the year ended December 31, 2022 that were reported as accruing or non-accruing TDRs. TDRs by Concession Type Year Ended December 31, 2022 (in thousands, except contract data) Number of Contracts Below Market Interest Rate Other Concessions (1) Total Commercial, financial, and agricultural 86 $ 34,518 $ 1,279 $ 35,797 Owner-occupied 29 65,956 3,857 69,813 Total commercial and industrial 115 100,474 5,136 105,610 Investment properties 7 5,026 6,610 11,636 1-4 family properties 14 3,850 — 3,850 Land and development 4 3,168 — 3,168 Total commercial real estate 25 12,044 6,610 18,654 Consumer mortgages 10 1,176 266 1,442 Home equity 41 4,836 39 4,875 Other consumer loans 15 — 605 605 Total consumer 66 6,012 910 6,922 Loans, net of deferred fees and costs 206 $ 118,530 $ 12,656 $ 131,186 (2) (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 year ended December 31, 2022. (2) No charge-offs were recorded during the year ended December 31, 2022 upon restructuring of these loans. |