Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Synovus Financial Corp. Sees Its Income Triple Thanks to Improved Credit Quality

As a result of improving credit trends, today Synovus Financial (NYSE: SNV  ) reported its net income more than tripled to $45.9 million in the first quarter of 2014 from the $14.8 million seen in the first quarter of 2013. It also rose 28% relative to the $35.8 million in the fourth quarter of last year.

The driving factor behind this increased income at Synovus Financial was the significant deduction in its provision for loan losses -- what it expects to lose on loans -- which fell by almost 75% year over year, from $35.6 million to $9.5 million in the most recent quarter.  

"Our steady progress over the past several quarters is a direct result of investments in additional talent in high-opportunity markets, effective partnerships between our core and specialty line bankers, and our team's unwavering commitment to delivering exceptional customer service," noted Synovus Chairman and CEO Kessel Stelling in the press release announcing the earnings. "The quarter also included continued reductions in credit costs, a slight increase in the net interest margin, and the implementation of new expense reduction initiatives."

In September, IBERIABANK acquired the branches of Synovus in the Memphis area. When excluding for this transaction, Synovus saw its commercial and industrial loans grow by $131 million quarter over quarter, an annualized rate of 5.3%, and its commercial real estate loans rose by 2.2% annualized, or $35.6 million.

In total, Synovus's profitability rebounded significantly as its return on average common equity stood at 2.3% in the first quarter of last year and 5% in the fourth quarter, to now 6.5% in the first quarter of 2014. In addition, its return on average assets stands at 0.75%, up from 0.46% and 0.58% in the first quarter and fourth of 2013, respectively.

 "During the remainder of 2014, we expect continued loan growth, further improvement in credit quality, and a continued push on expense reductions," concluded Stelling in the press release. He highlighted investments in customer experience and marketing will be made throughout the year. As a result of these and other initiatives, he said, "[a]ll of these activities, along with our strong capital position, provide a solid foundation for long-term growth and success."

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2923817, ~/Articles/ArticleHandler.aspx, 9/4/2015 11:57:41 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Patrick Morris

After a few stints in banking and corporate finance, Patrick joined the Motley Fool as a writer covering the financial sector. He's scaled back his everyday writing a bit, but he's always happy to opine on the latest headline news surrounding Berkshire Hathaway, Warren Buffett and all things personal finance.

Today's Market

updated 2 hours ago Sponsored by:
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASD 4,683.92 -49.58 -1.05%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/4/2015 4:02 PM
SNV $29.92 Down -0.11 -0.37%
Synovus Financial… CAPS Rating: ****