Editor's Note: An earlier version of this story overstated Synovus' earnings per share and mistakenly said it missed consensus EPS estimates.
Synovus Financial (SNV) reported a big increase in quarterly income, despite declines in interest income and mortgage banking revenue.
The Columbus, Ga., company reported a third-quarter profit of $45.7 million, up 49% from the same period of 2012, when its earnings were cut by a provision for loan losses of nearly $64 million. Per-share earnings were 4 cents, meeting the average expectation of analysts polled by Bloomberg.
Synovus' net interest income dropped 4%, to $204 million, as its net interest margin tightened by 11 basis points, to 3.40%. Its loan book grew by less than 1%, to $19.4 billion, while total assets increased by 2%, to $26.2 billion.
Synovus' provision for loan losses dropped 89%, to $6.8 million, and its net chargeoffs dropped by 76%, to $23 million. It sold approximately $56 million of distressed debt, down from $110 million in the same period a year earlier.
Noninterest income dropped by 13%, to $63.6 million, as mortgage banking income fell 43%, to $5.3 million. Card fees, deposit-account service charges and gains on securities sales also declined.
Cost cuts partially made up for the slip in revenue, as noninterest expense decreased by 2%, to $187.3 million. Synovus' costs related to foreclosed real estate and regulatory fees declined.
In July, Synovus redeemed its Troubled Asset Relief Program shares with a $968 million payment to the Treasury Department. It had had one of the largest stakes outstanding in the program.