Columbus, Georgia - Front Page: Synovus profits drop 93%

[susu369]

Posted on Fri, Jul. 25, 2008
Synovus profits drop 93%
BY TONY ADAMS - [e-mail]

Red ink flowed Thursday, with Synovus Financial Corp. reporting rising loan losses in its housing business and a 93 percent plunge in its second-quarter profits.
The regional bankholding firm, which has its headquarters in Columbus and employs 1,700 people locally, did manage to post $12 million, or 4 cents per share, in net income. That is down sharply from the $163 million, or 49 cents per share, it earned during the April-June period a year ago.

"Credit, obviously, was the story for the quarter as it has been for the past few quarters," Synovus Chairman and Chief Executive Officer Richard Anthony told analysts in a conference call following the earnings release.

Atlanta, which now accounts for 58 percent of Synovus' nonperforming real estate loans, tops the company's priority list, he said. The company has been using absolute auctions, mortgage note sales, and homebuilder incentives to move properties off its books as fast as possible.

-snip-

Isn't alone

Synovus isn't alone in its turbulent financial performance. Several major banks and lenders have reported huge losses in recent days, including Wachovia Corp. ($8.9 billion) and Citigroup ($2.5 billion). Bank of America bucked the trend, however, with a $3.4 billion profit in the second quarter.

Wachovia earlier this week announced it was cutting much of its mortgage operation and nearly 11,000 full-time employees and open positions to stem its bleeding.

Full story:

http://www.ledger-enquirer.com/102/v-print/story/381558.html

[TNDemo]

1. Synovus question.

I have an account with a local bank and when I go to on-line banking it directs me to the Synovus page and that is how I access it. What kind of a relationship is this? If Synovus goes belly-up, will my bank go with it or not?

[susu369]

2. Some information

(not sure it will answer your question). Synovus web site lists locations of its banks; not all go by the name Synovus - many others listed.

http://www.synovus.com/index.cfm?catid=4

"From a Single Bank to One of the Largest Institutions in the Southeast

Synovus started as a savings bank along the Chattahoochee River in Columbus, Georgia in 1888. What began as a community bank more than a century ago has grown into an innovative financial services company. Today, Synovus is one of the largest financial institutions in the Southeast, providing commercial and retail banking to customers through 35 banks, 440 ATMs, and other Synovus offices in Georgia, Alabama, South Carolina, Florida and Tennessee."

---

I do know it is a behemoth "financial services company" - and I saw it listed on one of those watched lists of poorly performing banks recently (not a FDIC official list - since they do not publish them).

[TNDemo]

3. Are there actual Synovus bank branches?

I was wondering if any went by the Synovus name. I read that same paragraph on my bank's site. It is says they are decentralized but I am still unclear if Synovus went under if the "independent" banks they service would too.

[susu369]

4. Yes, there are a few actual Synovus bank branches

Florida:
Jacksonville, FL
Synovus Bank of Jacksonville *
Naples, FL
Synovus Bank*
St. Petersburg, FL
Synovus Bank *


Birmingham, AL
Synovus Mortgage

Columbus, GA
Synovus Financial Corp
Synovus Insurance Services
Synovus Securities, Inc.
Synovus Trust Company

[susu369]

5. From another viewpoint

Checking at Bankrate.com, Synovus has:
Bankrate.com rating of 4 stars
Safe & Sound CAEL rating of 2
(which are good)

I know very little when it comes to the financial world. Maybe today's news is just a part of the overall picture and it will improve.

[TNDemo]

6. I had checked bankrate too

(great minds think alike) but I was wondering how often they updated their data.