This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Synovus Downgraded as Bad Loans Spike

Synovus Financial Corp. (SNV - Get Report) shares were falling 5% in after-hours trading, after the company posted a first-quarter loss worse than Wall Street expected and was hit by a downgrade from Moody's Investors Service.

The Columbus, Ga., bank holding company reported a first- quarter net loss of $137 million, which followed a net loss of $635 million in the fourth quarter and compared to net income of $81 million in the first quarter of 2008. Fourth-quarter results included $443 million in goodwill impairment charges.

After dividends and accretion of discounts on preferred stock totaling $14 million, the company's first-quarter net loss available to common shareholder was $151 million, or 46 cents per share. The loss exceeded the Thomsen Reuters consensus estimate of a net loss of 37 cents per share.

Synovus shares had closed at $4.06 Wednesday, down 16% on the day.

Moody's quickly followed the Synovus earnings release by downgrading the company's subordinated debt to B2 from Baa1, and the financial strength rating of two of its bank subsidiaries. Columbus Bank & Trust, of Columbus, Ga. and First Commercial Bank of Birmingham, Ala, were both knocked down to D from C+, with a rating outlook of negative.

Synovus had 31 bank subsidiaries as of Dec. 31, with 15 headquartered in Georgia, representing 56% of the company's total assets. None of Synovus's subsidiaries were included in TheStreet.com's recent look at Georgia banks hard hit by the bursting of the Atlanta real estate bubble.

Synovus saw bottom-line improvement vs. the fourth quarter not only due to the large writedown of goodwill in the prior period, but a lower provision for loan losses. The company set aside $290 million in the first quarter, down from $364 million in the fourth quarter.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
SNV $30.43 1.13%
AAPL $112.76 -0.47%
FB $89.43 -1.74%
GOOG $618.25 -1.92%
TSLA $249.06 0.23%

Markets

Chart of I:DJI
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASDAQ 4,776.5080 -51.8170 -1.07%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs