Synovus Financial Corp. posted its first quarterly profit in three years, helped by a steep drop in loan-loss provisioning and lower net charge-off rates.
Synovus, which last posted a profit in the second quarter of 2008, took a big hit during the credit crisis after its loan concentration in homebuilders, especially in Florida and the Atlanta region, soured rapidly.
The company now expects to remain profitable in the fourth quarter as it sees growth in core revenue and improved credit performance.
“Our performance during the quarter was driven by stable pre-tax, pre-credit costs income; continued improvement in credit trends; and the repositioning of our investment portfolio,” CEO Kessel Stelling said in a statement.
Total credit costs fell by more than half to $142.5 million, while net charge offs fell 41 percent from 237.2 million in the third quarter of 2010.
For the latest third quarter, the company earned $15.7 million, or 2 cents per share, compared with a net loss of $195.8 million, or 25 cents per share, a year ago.