Synovus Sinks After Stuffing Loss Cushion

Synovus (SNV Quote) shares sank as much as 17% early Monday after the bank increased the amount it is setting aside for loan losses in the fourth quarter.

The Columbus, Ga.-based bank on Saturday increased its fourth-quarter loan-loss provision by $200 million from the prior period to $350 million, as it warned of higher loan charge-offs and other credit expenses due to the current troublesome economic conditions. Shares recently were falling 13.2% to $7.12, after hitting a low of $6.79 Monday morning.

The bank also said its charge-off ratio rose to 3.2% of its loan portfolio, with the largest component of the loans related to Atlanta residential real estate loans. ...