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The next six months are critical to the bank if it is to exit Tarp and stay independent, says Kessel Stelling, the Columbus, Ga., company’s chairman and CEO.
July 24
Synovus Financial (SNV) in Columbus, Ga., reported a slight uptick in third-quarter income from a year earlier as its credit costs declined.
The $25.8 billion-asset company said Tuesday that its earnings rose 2%, to $16 million. Its earnings per share of 2 cents fell short of estimates from analysts polled by Bloomberg by a penny.
Credit costs totaled $85.6 million, a 40% decline from the third quarter of 2011. Nonperforming loan inflows fell 48%, to $114.8 million, while net chargeoffs dropped 30% to $96.5 million. Its provision for loan losses declined almost 38%, to $63.6 million
Noninterest income slid 45%, to $73.2 million, year over year. Gains from investment securities totaled $6.7 million, down almost 89%. Bankcard fees fell 32%, to $7.9 million.
Synovus' noninterest expenses dropped 14%, to $191.5 million, as costs for foreclosed real estate fell almost 68%, to $12 million. Federal Deposit Insurance Corp. insurance and other regulatory fees dropped more than 40%, to $9.2 million.
Loans dropped almost 2%, to $19.7 billion, year over year with declines in one-to-four-family properties, commercial real estate and land acquisition. Net interest income fell roughly 7%, to $212.3 million.
