Synovus Tumbles After Losses Mount

NEW YORK (TheStreet) -- Synovus Financial(SNV Quote) shares were plunging on Friday after reporting steep and mounting losses on Thursday afternoon.

The bank, which primarily serves the southeast region of the U.S., said its losses swelled to $437.7 million, or $1.27 a share, from a year earlier loss of $40.1 million, or 12 cents a share. According to a poll done by Thomson Reuters, on average analysts were expecting the bank to show a loss at 67 cents a share.

By Friday, shares were down nearly 18%, or 64 cents, at $2.93.

The Synovus press release also said results included a $149 million non-cash charge tied to an increase in the valuation allowance for deferred tax assets.

Net charge-offs jumped to $496.8 million during the third quarter compared to $105.3 million in the third quarter last year. The financial services operation's loan loss provision also grew to $496.5 million from a year-earlier sum of $151.4 million. Synovus also sold off some $339 million worth of problem loans during quarter.

Elsewhere, SunTrust Banks(STI Quote), BB&T(BBT Quote) and Regions Financial(RF Quote) shares were also bidding lower, down 4.4%, 1% and 3.3%, respectively.

-- Written by Sung Moss in New York

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