Note 12 - Commitments and Contingencies

In the normal course of business, Synovus enters into commitments to extend credit such as loan commitments and letters of credit to meet the financing needs of its customers. Synovus uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.

The contractual amount of these financial instruments represents Synovus' maximum credit risk should the counterparty draw upon the commitment, and should the counterparty subsequently fail to perform according to the terms of the contract. Since many of the commitments are expected to expire without being drawn upon, total commitment amounts do not necessarily represent future cash requirements. Additionally, certain commitments (primarily consumer) can generally be canceled by providing notice to the borrower.

The allowance for credit losses associated with unfunded commitments and letters of credit is a component of the unfunded commitments reserve recorded within other liabilities on the Consolidated Balance Sheets. Additionally, unearned fees relating to letters of credit are recorded within other liabilities on the Consolidated Balance Sheets. These amounts are not material to Synovus' Consolidated Balance Sheets.

Unfunded lending commitments and letters of credit at June 30, 2017 and December 31, 2016 are presented below.



(in thousands)	June 30, 2017		December 31, 2016
Letters of credit*	$	155,542	150,948
Commitments to fund commercial real estate, construction, and land development loans	1,427,947		1,394,162
Unused credit card lines	1,152,324		1,103,431
Commitments under home equity lines of credit	1,126,766		1,096,052
Commitments to fund commercial and industrial loans	5,039,168		4,792,834
Other loan commitments	308,386		307,772
Total unfunded lending commitments and letters of credit	$	9,210,133	8,845,199

* Represent the contractual amount net of risk participations of approximately $61 million and $83 million at June 30, 2017 and December 31, 2016, respectively.