Loans and Allowance for Loan Losses

3 Months Ended

Mar. 31, 2022

Loans and Allowance for Loan Losses [Abstract]

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 March 31, 2022 and December 31, 2021.

	March 31, 2022
(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	$	12,585,055	$	9,298	$	370	$	9,668	$	42,697	$	22,191	$	12,659,611
Owner-occupied	7,677,569		4,291		—		4,291		6,906		3,948		7,692,714
Total commercial and industrial	20,262,624		13,589		370		13,959		49,603		26,139		20,352,325
Investment properties	10,037,457		1,931		469		2,400		4,923		2,365		10,047,145
1-4 family properties	616,706		1,424		302		1,726		2,242		—		620,674
Land and development	474,875		571		—		571		2,053		—		477,499
Total commercial real estate	11,129,038		3,926		771		4,697		9,218		2,365		11,145,318
Consumer mortgages	5,017,739		4,114		153		4,267		29,997		—		5,052,003
Home equity	1,404,435		3,052		—		3,052		8,851		3		1,416,341
Credit cards	185,859		1,174		1,214		2,388		—		—		188,247
Other consumer loans	1,991,939		16,463		559		17,022		5,955		—		2,014,916
Total consumer	8,599,972		24,803		1,926		26,729		44,803		3		8,671,507
Loans, net of deferred fees and costs	$	39,991,634	$	42,318	$	3,067	$	45,385	$	103,624	$	28,507	$	40,169,150

	December 31, 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	$	12,068,740	$	13,378	$	3,953	$	17,331	$	37,918	$	23,869	$	12,147,858
Owner-occupied	7,460,184		3,627		59		3,686		7,146		4,050		7,475,066
Total commercial and industrial	19,528,924		17,005		4,012		21,017		45,064		27,919		19,622,924
Investment properties	9,894,924		1,285		717		2,002		3,273		2,577		9,902,776
1-4 family properties	639,631		1,182		93		1,275		4,535		28		645,469
Land and development	463,949		845		154		999		1,918		—		466,866
Total commercial real estate	10,998,504		3,312		964		4,276		9,726		2,605		11,015,111
Consumer mortgages	5,033,537		6,257		126		6,383		29,078		—		5,068,998
Home equity	1,349,027		2,619		—		2,619		9,773		—		1,361,419
Credit cards	201,929		1,233		1,010		2,243		—		—		204,172
Other consumer loans	2,011,430		20,369		658		21,027		6,877		—		2,039,334
Total consumer	8,595,923		30,478		1,794		32,272		45,728		—		8,673,923
Loans, net of deferred fees and costs	$	39,123,351	$	50,795	$	6,770	$	57,565	$	100,518	$	30,524	$	39,311,958

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 $3.1 million and $3.4 million for the three months ended March 31, 2022 and 2021, respectively. Of the interest income recognized during the three months ended March 31, 2022 and 2021, cash-basis interest income was $347 thousand and $622 thousand, respectively.

Pledged Loans

Loans with carrying values of $14.58 billion and $14.19 billion, respectively, were pledged as collateral for borrowings and capacity at March 31, 2022 and December 31, 2021, 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 primarily 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. PPP loans, which are categorized as C&I loans, were $202.9 million at March 31, 2022 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, home equity, and consumer credit card loans, as well as home improvement loans, student, personal, and auto 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 tables summarize each loan portfolio class by risk grade and origination year as of March 31, 2022 and December 31, 2021 as required under CECL.

	March 31, 2022
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans
(in thousands)	2022		2021		2020		2019		2018		Prior		Amortized Cost Basis		Converted to Term Loans		Total
Commercial, financial and agricultural
Pass	$	307,165	$	2,248,128	$	1,274,145	$	877,338	$	605,200	$	1,280,187	$	5,672,387	$	33,813	$	12,298,363
Special Mention	202		2,235		14,635		9,784		8,486		4,156		87,585		—		127,083
Substandard(1)	2,867		11,969		47,998		46,234		11,331		45,537		63,546		362		229,844
Doubtful(2)	—		464		—		—		3,620		—		48		—		4,132
Loss(3)	—		—		—		—		—		—		189		—		189
Total commercial, financial and agricultural	310,234		2,262,796		1,336,778		933,356		628,637		1,329,880		5,823,755		34,175		12,659,611
Owner-occupied
Pass	400,161		1,752,472		1,199,572		1,044,709		822,093		1,659,184		575,265		—		7,453,456
Special Mention	138		691		83,388		5,089		19,983		46,836		—		—		156,125
Substandard(1)	315		7,269		1,276		8,529		37,274		28,211		—		—		82,874
Loss(3)	—		259		—		—		—		—		—		—		259
Total owner-occupied	400,614		1,760,691		1,284,236		1,058,327		879,350		1,734,231		575,265		—		7,692,714
Total commercial and industrial	710,848		4,023,487		2,621,014		1,991,683		1,507,987		3,064,111		6,399,020		34,175		20,352,325
Investment properties
Pass	502,093		2,995,934		1,514,881		1,611,876		997,818		1,872,911		251,150		—		9,746,663
Special Mention	—		6,545		—		32,606		30,827		87,595		33,558		—		191,131
Substandard(1)	1,252		523		953		5,426		56,611		23,253		21,333		—		109,351
Total investment properties	503,345		3,003,002		1,515,834		1,649,908		1,085,256		1,983,759		306,041		—		10,047,145
1-4 family properties
Pass	73,676		245,278		70,143		43,125		38,539		91,502		47,599		—		609,862
Special Mention	243		190		537		638		—		235		—		—		1,843
Substandard(1)	1,750		2,297		6		564		2,004		2,303		45		—		8,969
Total 1-4 family properties	75,669		247,765		70,686		44,327		40,543		94,040		47,644		—		620,674
Land and development
Pass	24,697		138,267		37,147		69,216		23,133		97,030		45,900		—		435,390
Special Mention	—		—		790		—		31,160		1,160		—		—		33,110
Substandard(1)	186		392		323		651		2,985		4,462		—		—		8,999
Total land and development	24,883		138,659		38,260		69,867		57,278		102,652		45,900		—		477,499
Total commercial real estate	603,897		3,389,426		1,624,780		1,764,102		1,183,077		2,180,451		399,585		—		11,145,318

	March 31, 2022
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans
(in thousands)	2022		2021		2020		2019		2018		Prior		Amortized Cost Basis		Converted to Term Loans		Total
Consumer mortgages
Pass	227,036		1,265,235		1,494,751		519,494		195,449		1,293,538		306		—		4,995,809
Substandard(1)	21		2,362		5,114		6,846		11,307		29,778		—		—		55,428
Loss(3)	—		—		—		4		—		762		—		—		766
Total consumer mortgages	227,057		1,267,597		1,499,865		526,344		206,756		1,324,078		306		—		5,052,003
Home equity
Pass	—		—		—		—		—		—		1,192,522		210,986		1,403,508
Substandard(1)	—		—		—		—		—		—		6,780		5,488		12,268
Doubtful(2)	—		—		—		—		—		—		—		—		—
Loss(3)	—		—		—		—		—		—		426		139		565
Total home equity	—		—		—		—		—		—		1,199,728		216,613		1,416,341
Credit cards
Pass	—		—		—		—		—		—		187,035		—		187,035
Substandard(1)	—		—		—		—		—		—		451		—		451
Loss(4)	—		—		—		—		—		—		761		—		761
Total credit cards	—		—		—		—		—		—		188,247		—		188,247
Other consumer loans
Pass	30,863		705,823		627,569		104,053		46,362		189,427		303,456		—		2,007,553
Substandard(1)	114		793		1,510		1,989		1,196		1,559		184		—		7,345
Loss(4)	—		—		—		—		—		18		—		—		18
Total other consumer loans	30,977		706,616		629,079		106,042		47,558		191,004		303,640		—		2,014,916
Total consumer	258,034		1,974,213		2,128,944		632,386		254,314		1,515,082		1,691,921		216,613		8,671,507
Loans, net of deferred fees and costs	$	1,572,779	$	9,387,126	$	6,374,738	$	4,388,171	$	2,945,378	$	6,759,644	$	8,490,526	$	250,788	$	40,169,150

(1)    The majority of loans within Substandard risk grade are accruing loans at March 31, 2022.

(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, 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	$	2,396,717	$	1,332,549	$	922,396	$	607,918	$	433,045	$	903,995	$	5,151,981	$	42,809	$	11,791,410
Special Mention	2,731		15,166		17,571		10,433		2,242		2,489		71,996		—		122,628
Substandard(1)	16,105		50,979		40,125		10,383		16,473		37,565		51,442		33		223,105
Doubtful(2)	469		—		1,601		8,512		—		—		48		—		10,630
Loss(3)	—		—		—		—		—		—		85		—		85
Total commercial, financial and agricultural	2,416,022		1,398,694		981,693		637,246		451,760		944,049		5,275,552		42,842		12,147,858
Owner-occupied
Pass	1,776,086		1,276,797		1,117,825		858,721		708,942		1,116,766		437,724		—		7,292,861
Special Mention	702		19,950		4,724		10,202		18,109		36,481		—		—		90,168
Substandard(1)	7,312		1,294		8,386		43,276		6,169		25,329		—		—		91,766
Loss(3)	271		—		—		—		—		—		—		—		271
Total owner-occupied	1,784,371		1,298,041		1,130,935		912,199		733,220		1,178,576		437,724		—		7,475,066
Total commercial and industrial	4,200,393		2,696,735		2,112,628		1,549,445		1,184,980		2,122,625		5,713,276		42,842		19,622,924
Investment properties
Pass	2,823,978		1,463,503		1,905,534		1,019,765		738,036		1,317,634		278,697		—		9,547,147
Special Mention	6,163		—		32,290		63,900		59,194		44,532		33,659		—		239,738
Substandard(1)	1,465		326		8,550		57,127		3,564		23,505		21,354		—		115,891
Total investment properties	2,831,606		1,463,829		1,946,374		1,140,792		800,794		1,385,671		333,710		—		9,902,776
1-4 family properties
Pass	295,082		82,976		51,939		43,025		49,057		57,025		55,588		—		634,692
Special Mention	192		207		641		—		—		239		—		—		1,279
Substandard(1)	1,999		—		566		4,222		489		2,177		45		—		9,498
Total 1-4 family properties	297,273		83,183		53,146		47,247		49,546		59,441		55,633		—		645,469
Land and development
Pass	141,614		42,201		77,868		34,058		37,167		44,989		44,730		—		422,627
Special Mention	—		800		1,900		31,458		—		1,179		—		—		35,337
Substandard(1)	824		1,149		46		3,021		807		3,055		—		—		8,902
Total land and development	142,438		44,150		79,814		68,537		37,974		49,223		44,730		—		466,866
Total commercial real estate	3,271,317		1,591,162		2,079,334		1,256,576		888,314		1,494,335		434,073		—		11,015,111

	December 31, 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
Consumer mortgages
Pass	1,274,999		1,556,733		572,467		216,277		392,492		1,001,771		255		—		5,014,994
Substandard(1)	1,031		3,680		5,943		12,387		5,717		25,025		—		—		53,783
Loss(3)	—		—		5		—		—		216		—		—		221
Total consumer mortgages	1,276,030		1,560,413		578,415		228,664		398,209		1,027,012		255		—		5,068,998
Home equity
Pass	—		—		—		—		—		—		1,199,556		146,635		1,346,191
Substandard(1)	—		—		—		—		—		—		9,058		5,372		14,430
Loss(3)	—		—		—		—		—		—		658		140		798
Total home equity	—		—		—		—		—		—		1,209,272		152,147		1,361,419
Credit cards
Pass	—		—		—		—		—		—		203,161		—		203,161
Substandard(1)	—		—		—		—		—		—		348		—		348
Loss(4)	—		—		—		—		—		—		663		—		663
Total credit cards	—		—		—		—		—		—		204,172		—		204,172
Other consumer loans
Pass	654,419		708,937		127,131		49,993		86,175		97,765		306,500		—		2,030,920
Substandard(1)	668		1,550		2,064		1,308		1,892		750		162		—		8,394
Loss(4)	—		—		—		—		—		20		—		—		20
Total other consumer loans	655,087		710,487		129,195		51,301		88,067		98,535		306,662		—		2,039,334
Total consumer	1,931,117		2,270,900		707,610		279,965		486,276		1,125,547		1,720,361		152,147		8,673,923
Loans, net of deferred fees and costs	$	9,402,827	$	6,558,797	$	4,899,572	$	3,085,986	$	2,559,570	$	4,742,507	$	7,867,710	$	194,989	$	39,311,958

(1)    The majority of loans within Substandard risk grade are accruing loans at December 31, 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.

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 months ended March 31, 2022.

Rollforward of Allowance for Loan Losses

The following tables detail the changes in the ALL by loan segment for the three months ended March 31, 2022 and 2021.

	As Of and For the Three Months Ended March 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	(13,763)		(2,456)		(8,928)		(25,147)
Recoveries	2,363		361		3,814		6,538
Provision for (reversal of) loan losses	1,758		(969)		5,179		5,968
Ending balance at March 31, 2022	$	178,722	$	94,696	$	141,538	$	414,956
	As Of and For the Three Months Ended March 31, 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	(9,417)		(10,319)		(5,589)		(25,325)
Recoveries	2,772		1,026		1,323		5,121
Provision for (reversal of) loan losses	31,867		(7,637)		(46,548)		(22,318)
Ending balance at March 31, 2021	$	254,777	$	113,812	$	194,625	$	563,214

The ALL of $415.0 million and the reserve for unfunded commitments of $47.3 million, which is recorded in other liabilities, comprise the total ACL of $462.3 million at March 31, 2022. The ACL decreased $7.2 million compared to the December 31, 2021 ACL of $469.5 million, which consisted of an ALL of $427.6 million and the reserve for unfunded commitments of $41.9 million. The ACL to loans coverage ratio of 1.15% at March 31, 2022 was 4 bps lower compared to December 31, 2021.

The reduction in the ACL resulted primarily from continued positive trends in our credit performance and loan mix mostly offset by an increase in the downside weighting of the multiple scenario model which reflects increased economic uncertainty from inflation concerns and geopolitical tensions and slowed the pace of the allowance decline this quarter.

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, 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 March 31, 2022, economic scenario weights incorporated a 64% downside bias to the baseline scenario compared to 43% at December 31, 2021. The baseline outlook used in the March 31, 2022 estimate showed stable economic conditions with the unemployment rate improving to 3.4% by the end of 2022, compared to 3.7% used in the December 31, 2021 ACL estimate. The downside scenario that assumes consistent slow growth is the highest internally-weighted economic scenario and includes an unemployment rate of 4.7% by the end of 2022.

The provision for credit losses of $11.4 million for the three months ended March 31, 2022 included net charge-offs of $18.6 million and also represented a slowing of allowance releases due primarily to the increased economic uncertainty noted above. $3.8 million in reserves were also added as a result of purchases of $181.3 million of third-party lending loans for the three months ended March 31, 2022.

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 under the CARES Act, some of which had not been classified as TDRs. The CARES Act election period ended on January 1, 2022. See "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 - Summary of Significant Accounting Policies" in Synovus' 2021 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 months ended March 31, 2022 and 2021 that were reported as accruing or non-accruing TDRs.

TDRs by Concession Type
	Three Months Ended March 31, 2022
(in thousands, except contract data)	Number of Contracts	Below Market Interest Rate		Other Concessions(1)		Total
Commercial, financial and agricultural	33	$	17,900	$	541	$	18,441
Owner-occupied	13	6,104		3,857		9,961
Total commercial and industrial	46	24,004		4,398		28,402
Investment properties	3	589		6,610		7,199
1-4 family properties	7	1,213		—		1,213
Land and development	3	2,731		—		2,731
Total commercial real estate	13	4,533		6,610		11,143
Consumer mortgages	7	1,017		104		1,121
Home equity	11	929		—		929
Other consumer loans	2	—		48		48
Total consumer	20	1,946		152		2,098
Total TDRs	79	$	30,483	$	11,160	$	41,643	(2)
	Three Months Ended March 31, 2021
(in thousands, except contract data)	Number of Contracts	Below Market Interest Rate		Other Concessions(1)		Total
Commercial, financial and agricultural	40	$	3,233	$	2,563	$	5,796
Owner-occupied	5	1,254		399		1,653
Total commercial and industrial	45	4,487		2,962		7,449
Investment properties	5	1,984		—		1,984
1-4 family properties	5	463		39		502
Land and development	1	—		43		43
Total commercial real estate	11	2,447		82		2,529
Consumer mortgages	—	—		—		—
Home equity	13	587		162		749
Other consumer loans	73	129		4,619		4,748
Total consumer	86	716		4,781		5,497
Total TDRs	142	$	7,650	$	7,825	$	15,475	(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 March 31, 2022 and 2021.

(2)    No net charge-offs were recorded during the three months ended March 31, 2022.

(3)    No net charge-offs were recorded during the three months ended March 31, 2021.

    For both the three months ended March 31, 2022 and March 31, 2021, there were no defaults 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). As of March 31, 2022 and December 31, 2021, there were no commitments to lend a material amount of additional funds to any client whose loan was classified as a TDR.