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The Columbus, Ga., company has overcome a series of challenges since 2008, yet it will face more in the coming year. CEO Kessel Stelling, in a Q&A, addresses questions about how it will boost revenue and profits.
December 27 -
Regulators let Synovus acquire a failed bank its first deal in four years though it still owes Tarp $968 million. A surprising number of similar deals have occurred in recent years.
May 16 -
The Georgia company is finally ready to exit the Troubled Asset Relief Program, allowing executives to set their sights on increasing revenue.
July 19 -
Analysts hammered Regions and Synovus for a rising cost base amid weak economic conditions, while Signature Bank in New York was given a pass since its revenues are growing faster than its expenses.
October 22 -
Synovus Financial (SNV) reported a big increase in quarterly income, but missed estimates as interest income and mortgage banking revenue fell.
October 22
Synovus Financial (SNV) in Columbus, Ga., reported lower quarterly earnings because of a decline in mortgage banking revenue and a litigation-related charge.
The $26 billion-asset company's earnings fell 4% from the third quarter and 95% from a year earlier, to $35.8 million. Synovus benefited in the fourth quarter of 2012 from recapturing the use of an $800 million deferred-tax asset. Earnings per share of 4 cents were about a penny below the average estimate of analysts polled by Bloomberg.
The company set aside $10 million to cover potential costs tied to "outstanding legal matters," though the company's Tuesday press release did not detail any specific issues.
Noninterest income fell 25% from a year earlier, to $60.2 million, largely because of a 96% decrease in gains from investment securities and a 68% drop in mortgage banking revenue.
Net interest income fell 2% from a year earlier, to $204.3 million. The net interest margin compressed by 7 basis points from a year earlier, to 3.38%.
Noninterest expense fell 10% from the fourth quarter of 2012, to $190.7 million, largely because of a 124% drop in losses from other loans held for sale and an 85% decrease in foreclosed real estate expenses.
Improved credit quality allowed Synovus to slash its loan-loss provision by 90% from a year earlier, to $14 million. Net chargeoffs fell 87% from a year earlier, to $25.1 million. The company took advantage of its DTA recapture to get aggressive with problem loans during the fourth quarter of 2012.
Synovus
