Synovus (NYSE:SNV) has completed a bulk sale of distressed assets, the company announced in a press release. The financial services company said it expects to sell around $530 million in total carrying value in such assets during the present quarter.
Of this amount, roughly $400 million is in what the bank characterizes as non-performing assets, while $110 million is in loans rated "accruing substandard," and $20 million consists of loans classified as "special mention".
The company expects the divestment of these assets to result in pre-tax charges of around $155 million for this quarter.
Synovus quoted its Chairman and CEO Kessel Stelling as saying:
The sale of these distressed assets is an important and strategic step in our continued efforts to further strengthen our balance sheet, improve asset quality, and enhance future earnings.
Eric Volkman has no positions in Synovus. The Motley Fool has no positions in Synovus. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.