South Financial Group Posts Deeper 3Q Loss

GREENVILLE, S.C. (AP) — South Financial Group Inc., a Southeast regional bank, said it posted a wider third-quarter loss as the company increased its reserves amid tighter credit markets, and an analyst downgraded the stock.

The stock declined 45 cents, or 31.3 percent, to 98 cents in late afternoon trading.

The company posted a loss available to common shareholders, after the payment of dividends on preferred stock, of $340.8 million, or $1.95 per share. A year ago, the company lost $31.2 million, or 43 cents per share.

Results in the most recent quarter included a $200 million charge for deferred tax assets.

Revenue declined 8.7 percent to $113.5 million from $124.3 million.

Analysts polled by Thomson Reuters expected a 44-cent loss and revenue of $115.3 million.

South Financial increased its reserves for loan losses. At the end of the quarter, South Financial had $339.5 million reserved for losses, compared with $200.7 million set aside at the end of the quarter a year ago.