Bolstered by profits at its electronic transaction processing subsidiary, second-quarter earnings at Synovus Financial Corp. of Columbus, Ga., jumped 16% from a year earlier, to $61.8 million, or 22 cents per share.
The $13.7 billion-asset company, which operates 38 community banks in four states, also reported that first-half earnings rose 18%, to $123.1 million, or 43 cents per share.
Fee income was up 59% for the quarter, driven mainly by profits at Total System Service Inc., which is nearly 81% owned by Synovus. Second-quarter profits at Total System, which recently signed a letter of intent to provide bank processing services for Royal Bank of Scotland, rose 32%, to $24.3 million.
Commercial lending fueled the earnings growth at Synovus' core banking operations. Though Synovus increased its loan-loss provision by 41% in the first half of the year, net interest income was up 11%.
