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.