COLUMBUS, GA - Synovus Financial Corp. (NYSE: SNV) announced Tuesday its results of operations for the first quarter of 2010.
- The net loss for the first quarter of 2010 was $215.7 million, or $0.47 per common share.
- The first quarter results include a $43 million after-tax gain from the sale of the merchant services business.
- Total credit costs for the first quarter were $394.5 million, compared to $427.8 million in the fourth quarter of 2009. Credit costs primarily include provision expense of $341.0 million and foreclosed real estate costs of $45.5 million. Allowances and cumulative write-downs on all remaining non-performing assets are approximately 49% of unpaid principal balances, compared to 45% in the fourth quarter of 2009.
- Net charge-offs decreased by $45.9 million versus the previous quarter, while non-performing assets were up slightly by $11.5 million, from the fourth quarter of 2009. Non-performing asset inflows totaled $531 million for the quarter, down from $661 million in the fourth quarter.
- Problem asset disposition strategy remains on track with $271 million in sales for the first quarter.
- The allowance for loan losses increased 25 basis points, or $25 million, to 3.97% of total loans.
- Total loans past due and still accruing remained low at 1.21% of total loans.
- The net interest margin was 3.39%, up 14 basis points from the fourth quarter of 2009. Excluding the negative impact of non-performing assets, the net interest margin was 3.77% for the first quarter.
- Core deposits grew slightly compared to the fourth quarter of 2009. The mix of core deposits continued to improve with non-interest bearing demand deposits and money market accounts replacing higher priced time deposits.
- Salaries and other personnel expenses were $104.0 million for the quarter, down $7.1 million, or 6.4% from the first quarter of 2009.
- As of March 31, 2010, the tangible common equity to tangible assets ratio was 5.08%, Tier 1 Capital Ratio was 9.69%, Tier 1 common equity was 6.04%, and total risk-based capital ratio was 13.04%.