Loans And Allowance For Loan Losses | Note 5 - Loans and Allowance for Loan Losses Loans outstanding, by classification, at December 31, 2015 and 2014 are summarized below. December 31, (in thousands) 2015 2014 Investment properties $ 5,751,631 5,206,674 1-4 family properties 1,109,854 1,133,882 Land acquisition 513,981 586,046 Total commercial real estate 7,375,466 6,926,602 Commercial, financial and agricultural 6,472,482 6,182,312 Owner-occupied 4,318,950 4,085,407 Total commercial and industrial 10,791,432 10,267,719 Home equity lines 1,689,914 1,683,998 Consumer mortgages 1,938,683 1,694,061 Credit cards 240,851 253,649 Other retail loans 423,318 302,460 Total retail 4,292,766 3,934,168 Total loans 22,459,664 21,128,489 Deferred fees and costs, net (30,099 ) (30,790 ) Total loans, net of deferred fees and costs $ 22,429,565 21,097,699 A substantial portion of the loan portfolio is secured by real estate in markets located throughout Georgia, Alabama, Tennessee, South Carolina, and Florida. Accordingly, the ultimate collectability of a substantial portion of the loan portfolio is susceptible to changes in market conditions in these areas. The following is a summary of current, accruing past due, and non-accrual loans by class as of December 31, 2015 and 2014 . Current, Accruing Past Due, and Non-accrual Loans December 31, 2015 ( in thousands) Current Accruing 30-89 Days Past Due Accruing 90 Days or Greater Past Due Total Accruing Past Due Non-accrual Total Investment properties $ 5,726,307 2,284 — 2,284 23,040 5,751,631 1-4 family properties 1,086,612 6,300 103 6,403 16,839 1,109,854 Land acquisition 495,542 639 32 671 17,768 513,981 Total commercial real estate 7,308,461 9,223 135 9,358 57,647 7,375,466 Commercial, financial and agricultural 6,410,338 12,222 785 13,007 49,137 6,472,482 Owner-occupied 4,293,308 5,254 95 5,349 20,293 4,318,950 Total commercial and industrial 10,703,646 17,476 880 18,356 69,430 10,791,432 Home equity lines 1,667,552 5,882 — 5,882 16,480 1,689,914 Consumer mortgages 1,907,644 8,657 134 8,791 22,248 1,938,683 Credit cards 237,742 1,663 1,446 3,109 — 240,851 Other retail loans 418,337 2,390 26 2,416 2,565 423,318 Total retail 4,231,275 18,592 1,606 20,198 41,293 4,292,766 Total loans $ 22,243,382 45,291 2,621 47,912 168,370 22,459,664 (1) December 31, 2014 ( in thousands) Current Accruing 30-89 Days Past Due Accruing 90 Days or Greater Past Due Total Accruing Past Due Non-accrual Total Investment properties $ 5,184,103 1,851 — 1,851 20,720 5,206,674 1-4 family properties 1,105,186 4,067 432 4,499 24,197 1,133,882 Land acquisition 551,308 363 — 363 34,375 586,046 Total commercial real estate 6,840,597 6,281 432 6,713 79,292 6,926,602 Commercial, financial and agricultural 6,130,184 9,979 1,790 11,769 40,359 6,182,312 Owner-occupied 4,052,679 6,404 225 6,629 26,099 4,085,407 Total commercial and industrial 10,182,863 16,383 2,015 18,398 66,458 10,267,719 Home equity lines 1,659,869 6,992 703 7,695 16,434 1,683,998 Consumer mortgages 1,648,145 12,626 12 12,638 33,278 1,694,061 Credit cards 250,304 1,971 1,374 3,345 — 253,649 Other retail loans 297,703 2,361 101 2,462 2,295 302,460 Total retail 3,856,021 23,950 2,190 26,140 52,007 3,934,168 Total loans $ 20,879,481 46,614 4,637 51,251 197,757 21,128,489 (2) (1) Total before net deferred fees and costs of $30.1 million . (2) Total before net deferred fees and costs of $30.8 million . Non-accrual loans as of December 31, 2015 and 2014 were $168.4 million and $197.8 million , respectively. Interest income on non-accrual loans outstanding at December 31, 2015 and 2014 that would have been recorded if the loans had been current and performed in accordance with their original terms was $10.5 million and $12.6 million , respectively. Interest income recorded on these loans for the years ended December 31, 2015 and 2014 was $4.3 million and $4.1 million , respectively. The credit quality of the loan portfolio is summarized 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 Classified (Pass), Special Mention, and Classified or Adverse rating (Substandard, Doubtful, and Loss) and are defined as follows: Pass - loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner. 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 its continuance on the institution's books as an asset, without establishment of a specific valuation allowance or charge-off is not warranted. \ In the following tables, retail loans are classified as Pass except when they reach 90 days past due or are downgraded to substandard, and upon reaching 120 days past due, they are downgraded to loss and charged off, in accordance with the FFIEC Uniform Retail Credit Classification and Account Management Policy. The risk grade classifications of retail loans secured by junior liens on 1-4 family residential properties also consider available information on the payment status of the associated senior lien with other financial institutions. Loan Portfolio Credit Exposure by Risk Grade December 31, 2015 (in thousands) Pass Special Mention Substandard (1) Doubtful (2) Loss Total Investment properties $ 5,560,595 114,705 76,331 — — 5,751,631 1-4 family properties 976,601 64,325 61,726 7,202 — 1,109,854 Land acquisition 436,835 46,208 30,574 364 — 513,981 Total commercial real estate 6,974,031 225,238 168,631 7,566 — 7,375,466 Commercial, financial and agricultural 6,203,481 152,189 100,658 13,330 2,824 (3) 6,472,482 Owner-occupied 4,118,631 78,490 121,272 98 459 (3) 4,318,950 Total commercial and industrial 10,322,112 230,679 221,930 13,428 3,283 10,791,432 Home equity lines 1,666,586 — 20,456 1,206 1,666 (3) 1,689,914 Consumer mortgages 1,910,649 — 26,041 1,700 293 (3) 1,938,683 Credit cards 239,405 — 480 — 966 (4) 240,851 Other retail loans 418,929 — 4,315 — 74 (3) 423,318 Total retail 4,235,569 — 51,292 2,906 2,999 4,292,766 Total loans $ 21,531,712 455,917 441,853 23,900 6,282 22,459,664 (5) December 31, 2014 (in thousands) Pass Special Mention Substandard (1) Doubtful (2) Loss Total Investment properties $ 4,936,319 167,490 102,865 — — 5,206,674 1-4 family properties 943,721 86,072 96,392 7,697 — (3) 1,133,882 Land acquisition 462,313 60,902 62,101 730 — 586,046 Total commercial real estate 6,342,353 314,464 261,358 8,427 — 6,926,602 Commercial, financial and agricultural 5,905,589 143,879 123,225 9,539 80 (3) 6,182,312 Owner-occupied 3,827,943 95,647 161,045 327 445 4,085,407 Total commercial and industrial 9,733,532 239,526 284,270 9,866 525 10,267,719 Home equity lines 1,659,794 — 20,043 2,009 2,152 (3) 1,683,998 Consumer mortgages 1,653,491 — 37,656 2,654 260 (3) 1,694,061 Credit cards 252,275 — 495 — 879 (4) 253,649 Other retail loans 298,991 — 3,339 32 98 (3) 302,460 Total retail 3,864,551 — 61,533 4,695 3,389 3,934,168 Total loans $ 19,940,436 553,990 607,161 22,988 3,914 21,128,489 (6) (1) Includes $138.2 million and $170.9 million of non-accrual substandard loans at December 31, 2015 and December 31, 2014 , respectively. (2) These loans are on non-accrual status. Commercial loans generally have an allowance for loan losses in accordance with ASC 310 and retail loans generally have an allowance for loan losses equal to 50% of the loan amount. (3) These loans 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 Uniform Retail Credit Classification and Account Management Policy. (5) Total before net deferred fees and costs of $30.1 million . (6) Total before net deferred fees and costs of $30.8 million . The following table details the change in the allowance for loan losses by loan segment for the years ended December 31, 2015 , 2014 and 2013 . Allowance for Loan Losses and Recorded Investment in Loans As Of and For The Year Ended December 31, 2015 (in thousands) Commercial Real Estate Commercial & Industrial Retail Unallocated Total Allowance for loan losses Beginning balance $ 101,471 118,110 41,736 — 261,317 Charge-offs (13,998 ) (22,583 ) (20,758 ) — (57,339 ) Recoveries 13,644 8,611 7,253 — 29,508 Provision for loan losses (13,984 ) 18,851 14,143 — 19,010 Ending balance $ 87,133 122,989 42,374 — 252,496 Ending balance: individually evaluated for impairment 18,969 10,477 989 — 30,435 Ending balance: collectively evaluated for impairment $ 68,164 112,512 41,385 — 222,061 Loans Ending balance: total loans (1) $ 7,375,466 10,791,432 4,292,766 — 22,459,664 Ending balance: individually evaluated for impairment 157,958 105,599 38,243 — 301,800 Ending balance: collectively evaluated for impairment $ 7,217,508 10,685,833 4,254,523 — 22,157,864 As Of and For The Year Ended December 31, 2014 (in thousands) Commercial Real Estate Commercial & Industrial Retail Unallocated Total Allowance for loan losses Beginning balance $ 127,646 115,435 41,479 23,000 307,560 Allowance for loan losses of sold loans (281 ) (398 ) (340 ) — (1,019 ) Charge-offs (49,716 ) (38,941 ) (24,881 ) — (113,538 ) Recoveries 11,787 14,628 8,068 — 34,483 Provision for loan losses 12,035 27,386 17,410 (23,000 ) 33,831 Ending balance $ 101,471 118,110 41,736 — 261,317 Ending balance: individually evaluated for impairment 21,755 10,451 1,270 — 33,476 Ending balance: collectively evaluated for impairment $ 79,716 $ 107,659 $ 40,466 $ — 227,841 Loans Ending balance: total loans (2) $ 6,926,602 10,267,719 3,934,168 — 21,128,489 Ending balance: individually evaluated for impairment 251,536 146,026 44,586 — 442,148 Ending balance: collectively evaluated for impairment $ 6,675,066 10,121,693 3,889,582 — 20,686,341 As Of and For The Year Ended December 31, 2013 (in thousands) Commercial Real Estate Commercial & Industrial Retail Unallocated Total Allowance for loan losses Beginning balance $167,926 138,495 38,984 28,000 373,405 Charge-offs (87,031 ) (58,936 ) (33,986 ) — (179,953 ) Recoveries 17,068 19,918 7,524 — 44,510 Provision for loan losses 29,683 15,958 28,957 (5,000 ) 69,598 Ending balance $ 127,646 115,435 41,479 23,000 307,560 Ending balance: individually evaluated for impairment 46,787 20,018 1,192 — 67,997 Ending balance: collectively evaluated for impairment $ 80,859 95,417 40,287 23,000 239,563 Loans Ending balance: total loans (3) $ 6,506,976 9,931,451 3,648,233 — 20,086,660 Ending balance: individually evaluated for impairment 538,730 242,862 54,962 — 836,554 Ending balance: collectively evaluated for impairment $ 5,968,246 9,688,589 3,593,271 — 19,250,106 (1) Total before net deferred fees and costs of $30.1 million . (2) Total before net deferred fees and costs of $30.8 million . (3) Total before net deferred fees and costs of $28.9 million . Below is a detailed summary of impaired loans (including accruing TDRs) by class as of December 31, 2015 and 2014 . Impaired Loans (including accruing TDRs) December 31, 2015 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded Investment properties $ 10,051 12,946 — 11,625 — 1-4 family properties 1,507 5,526 — 2,546 — Land acquisition 8,551 39,053 — 13,897 — Total commercial real estate 20,109 57,525 — 28,068 — Commercial, financial and agricultural 4,393 7,606 — 5,737 — Owner-occupied 8,762 11,210 — 14,657 — Total commercial and industrial 13,155 18,816 — 20,394 — Home equity lines 1,030 1,030 — 573 — Consumer mortgages 814 941 — 995 — Credit cards — — — — — Other retail loans — — — — — Total retail 1,844 1,971 — 1,568 — Total 35,108 78,312 — 50,030 — With allowance recorded Investment properties 62,305 62,305 10,070 73,211 2,131 1-4 family properties 51,376 51,376 6,184 61,690 1,618 Land acquisition 24,168 24,738 2,715 34,793 936 Total commercial real estate 137,849 138,419 18,969 169,694 4,685 Commercial, financial and agricultural 42,914 44,374 8,339 43,740 1,125 Owner-occupied 49,530 49,688 2,138 55,323 1,814 Total commercial and industrial 92,444 94,062 10,477 99,063 2,939 Home equity lines 9,575 9,575 206 8,318 346 Consumer mortgages 22,173 23,297 651 26,044 1,229 Credit cards — — — — — Other retail loans 4,651 4,651 132 5,105 323 Total retail 36,399 37,523 989 39,467 1,898 Total 266,692 270,004 30,435 308,224 9,522 Total Investment properties 72,356 75,251 10,070 84,836 2,131 1-4 family properties 52,883 56,902 6,184 64,236 1,618 Land acquisition 32,719 63,791 2,715 48,690 936 Total commercial real estate 157,958 195,944 18,969 197,762 4,685 Commercial, financial and agricultural 47,307 51,980 8,339 49,477 1,125 Owner-occupied 58,292 60,898 2,138 69,980 1,814 Total commercial and industrial 105,599 112,878 10,477 119,457 2,939 Home equity lines 10,605 10,605 206 8,891 346 Consumer mortgages 22,987 24,238 651 27,039 1,229 Credit cards — — — — — Other retail loans 4,651 4,651 132 5,105 323 Total retail 38,243 39,494 989 41,035 1,898 Total impaired loans $ 301,800 348,316 30,435 358,254 9,522 December 31, 2014 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded Investment properties $ 15,368 20,237 — 25,311 — 1-4 family properties 2,981 10,520 — 5,441 — Land acquisition 21,504 61,843 — 29,954 — Total commercial real estate 39,853 92,600 — 60,706 — Commercial, financial and agricultural 7,391 11,193 — 8,984 — Owner-occupied 17,017 19,612 — 19,548 — Total commercial and industrial 24,408 30,805 — 28,532 — Home equity lines — — — — — Consumer mortgages 995 2,065 — 1,352 — Credit cards — — — — — Other retail loans — — — — — Total retail 995 2,065 — 1,352 — Total 65,256 125,470 — 90,590 — With allowance recorded Investment properties 81,758 83,963 5,413 129,289 3,690 1-4 family properties 80,625 81,357 11,442 94,773 2,645 Land acquisition 49,300 49,483 4,900 89,195 1,689 Total commercial real estate 211,683 214,803 21,755 313,257 8,024 Commercial, financial and agricultural 59,035 59,041 7,597 91,221 2,392 Owner-occupied 62,583 62,601 2,854 78,950 2,610 Total commercial and industrial 121,618 121,642 10,451 170,171 5,002 Home equity lines 4,848 4,848 129 3,604 1405 Consumer mortgages 33,450 33,450 1,040 39,427 115 Credit cards — — — — — Other retail loans 5,293 5,293 101 4,997 315 Total retail 43,591 43,591 1,270 48,028 1,835 Total 376,892 380,036 33,476 531,456 14,861 Total Investment properties 97,126 104,200 5,413 154,600 3,690 1-4 family properties 83,606 91,877 11,442 100,214 2,645 Land acquisition 70,804 111,326 4,900 119,149 1,689 Total commercial real estate 251,536 307,403 21,755 373,963 8,024 Commercial, financial and agricultural 66,426 70,234 7,597 100,205 2,392 Owner-occupied 79,600 82,213 2,854 98,498 2,610 Total commercial and industrial 146,026 152,447 10,451 198,703 5,002 Home equity lines 4,848 4,848 129 3,604 1,405 Consumer mortgages 34,445 35,515 1,040 40,779 115 Credit cards — — — — — Other retail loans 5,293 5,293 101 4,997 315 Total retail 44,586 45,656 1,270 49,380 1,835 Total impaired loans $ 442,148 505,506 33,476 622,046 14,861 The average recorded investment in impaired loans was $952.3 million for the year ended December 31, 2013 . Excluding accruing TDRs, there was no interest income recognized for the investment in impaired loans for the years ended December 31, 2015 , 2014 , and 2013 . Interest income recognized for accruing TDRs was $21.1 million for the year ended December 31, 2013 . At December 31, 2015 , 2014 , and 2013 , all impaired loans, other than $223.9 million , $348.4 million , and $556.4 million , respectively, of accruing TDRs, were on nonaccrual status. Concessions provided in a TDR are primarily in the form of providing a below market interest rate given the borrower's credit risk, a period of time generally less than one year with a reduction of required principal and/or interest payments (e.g., interest only for a period of time), or extension of the maturity of the loan generally for less than one year. Insignificant periods of reduction of principal and/or interest payments, or one time deferrals of three months or less, are generally not considered to be financial concessions. The following tables represent the post-modification balance, shown by type of concession, for loans modified or renewed during the years ended December 31, 2015 and 2014 that were reported as accruing or non-accruing TDRs. TDRs by Concession Type Year Ended December 31, 2015 (in thousands, except contract data) Number of Contracts Principal Forgiveness Below Market Interest Rate Term Extensions and/or Other Concessions Total Investment properties 11 $ — 25,052 6,973 32,025 1-4 family properties 43 14,823 4,667 2,763 22,253 Land acquisition 12 — 614 1,532 2,146 Total commercial real estate 66 14,823 30,333 11,268 56,424 Commercial, financial and agricultural 91 29 3,191 6,477 9,697 Owner-occupied 10 — 3,417 2,064 5,481 Total commercial and industrial 101 29 6,608 8,541 15,178 Home equity lines 53 — 2,826 2,905 5,731 Consumer mortgages 15 — 1,011 895 1,906 Credit cards — — — — — Other retail loans 27 — 444 703 1,147 Total retail 95 — 4,281 4,503 8,784 Total loans 262 $ 14,852 41,222 24,312 80,386 (1) (1) As a result of these loans being reported as TDRs, there were net charge-offs of $4.0 million recorded during 2015 . TDRs by Concession Type Year Ended December 31, 2014 (in thousands, except contract data) Number of Contracts Principal Forgiveness Below Market Interest Rate Term Extensions and/or Other Concessions Total Investment properties 15 $ — 8,423 5,813 14,236 1-4 family properties 68 — 6,611 6,492 13,103 Land acquisition 16 2,338 4,783 2,688 9,809 Total commercial real estate 99 2,338 19,817 14,993 37,148 Commercial, financial and agricultural 89 60 10,066 21,141 31,267 Owner-occupied 18 — 23,404 14,862 38,266 Total commercial and industrial 107 60 33,470 36,003 69,533 Home equity lines 20 — 2,335 451 2,786 Consumer mortgages 19 — 2,735 867 3,602 Credit cards — — — — — Other retail loans 27 — 663 566 1,229 Total retail 66 — 5,733 1,884 7,617 Total loans 272 $ 2,398 59,020 52,880 114,298 (1) (1) As a result of these loans being reported as TDRs, there were net charge-offs of approximately $163 thousand recorded during 2014 . The following table presents TDRs that defaulted in the years indicated and which were modified or renewed in a TDR within 12 months of the default date: Troubled Debt Restructurings Entered Into That Subsequently Defaulted (1) During Year Ended December 31, 2015 Year Ended December 31, 2014 (in thousands, except contract data) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Investment properties 1 $ 10,944 1 $ 186 1-4 family properties — — 3 1,018 Land acquisition — — 1 428 Total commercial real estate 1 10,944 5 1,632 Commercial, financial and agricultural 1 112 6 1,779 Owner-occupied 2 1,319 — — Total commercial and industrial 3 1,431 6 1,779 Home equity lines 2 74 — — Consumer mortgages — — 3 206 Credit cards — — — — Other retail loans 1 81 1 6 Total retail 3 155 4 212 Total loans 7 $ 12,530 15 $ 3,623 (1) Defaulted is defined as the earlier of the troubled debt restructuring being placed on non-accrual status or reaching 90 days past due with respect to principal and/or interest payments. If at the time that a loan was designated as a TDR the loan was not already impaired, the measurement of impairment resulting from the TDR designation changes from a general pool-level reserve to a specific loan measurement of impairment in accordance with ASC 310-10-35, Accounting By Creditors for Impairment of a Loan—an amendment of FASB Statements No. 5 , ASC 450-20, and No. 15, ASC 310-40. Generally, the change in the allowance for loan losses resulting from such a TDR is not significant. At December 31, 2015 , the allowance for loan losses allocated to accruing TDRs totaling $223.9 million was $12.6 million compared to accruing TDR's of $348.4 million with a related allowance for loan losses of $21.0 million at December 31, 2014 . Nonaccrual non-homogeneous loans (commercial-type impaired loan relationships greater than $1 million ) that are designated as TDRs are individually measured for the amount of impairment, if any, both before and after the TDR designation. In the ordinary course of business, Synovus Bank has made loans to certain Synovus and Synovus Bank executive officers and directors (including their associates and affiliates). Management believes that such loans are made on the same terms, including interest rate and collateral, as those prevailing at the time for comparable transactions with unaffiliated customers. The following is a summary of such loans and the activity in these loans for the year ended December 31, 2015 . (in thousands) Balance at December 31, 2014 $ 38,482 New loans 13,577 Repayments (10,506 ) Loans charged-off — Balance at December 31, 2015 $ 41,553 At December 31, 2015 , there were no loans to executive officers and directors that were classified as nonaccrual, greater than 90 days past due and still accruing, or potential problem loans. |