Synovus Shares Tumble On Disappointing 3Q Report

BOSTON (AP) — Shares of Synovus Financial Corp. tumbled on Friday after the southeastern regional bank's continuing credit troubles triggered a wider-than-expected third-quarter loss, leading analysts to cut forecasts for future earnings.

The stock fell 59 cents, or 16.5 percent, to $2.98 in morning trading, the lowest price since late July, after the company's second-quarter report also disappointed Wall Street.

The third-quarter loss, reported after markets closed Thursday, widened in part because of what Synovus Chairman and CEO Richard Anthony called the company's "aggressive approach of charging down and disposing of non-performing assets."

Analysts offered mostly negative assessments of the latest results. Credit Suisse's Craig Siegenthaler wrote in a research note that Synovus' growth in non-performing assets — loans that are considered past due — "appears to be cresting, although at a faster pace than we estimated."

Meanwhile, net charge-offs — loans written off as not being repaid — escalated, and Siegenthaler said the bank may need to raise additional capital if net charge-offs don't improve.

The Columbus, Ga.-based company said it sold off $339 million in what it called "problem assets" during the latest quarter. But Fox-Pitt Kelton analyst Albert Savastano said he expects it will take "a few more quarters" before the company "can adequately dispose of assets."