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Synovus Narrows Loss

Credit quality improved, but the bank missed estimates.
Author:

NEW YORK (

TheStreet

) --

Synovus Financial Corp.

(SNV) - Get Report

lost $195.8 million, or 25 cents per share, a 19% improvement on its $243 million loss in the second quarter and a 57% improvement on its $454 million loss in the third quarter of last year.

"Improvement in credit is the single most important factor in our return to profitability and our team continues to work aggressively to resolve these issues," read a statement from Kessel Stelling, president and CEO of the Columbus, Ga.-based bank.

Synovus claimed $239 in provision expenses, the lowest total since the third quarter of 2008. The bank's credit costs dropped 15% in the quarter, representing the fifth straight quarter of declines.

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However, net loans also declined by $762 million, or 3.3% versus the previous quarter. Deposits also dropped--by $1 billion, to $25.2 billion, though $627 million of the drop was attributable to time deposits, which cost the bank more money.

The results were slightly worse than the

Thomson Reuters

analyst consensus. Analysts had been looking for a loss of 22 cents per share.

--

Written by Dan Freed in New York

.

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