Columbus, Ga.-based Synovus Financial Corp. on Oct. 17 posted a 52.3% year-over-year increase in third-quarter profit.
Net income applicable to common shareholders climbed to $95.4 million, or 78 cents per share, from net income of $62.7 million, or 51 cents per share, in the third quarter of the prior year. Adjusted diluted earnings per share were 65 cents for the third quarter of 2017, compared to 61 cents for the prior quarter and 52 cents for the third quarter of 2016.
The S&P Capital IQ consensus estimate for normalized EPS for the third quarter was 65 cents.
Synovus' third-quarter results reflect a $75.0 million transaction fee related to the completed acquisition of certain assets and assumption of certain liabilities of Cabela's Inc. unit World's Foremost Bank.
During the third quarter, Synovus also completed certain balance sheet restructuring actions, including the transfer of $77.8 million in loans to held-for-sale, which resulted in a provision expense of $27.7 million. The company recorded a provision for loan losses of $39.7 million, up from $10.3 million in the previous quarter and up from $5.7 million a year earlier.
The company's net interest margin for the quarter was 3.63%, up from 3.51% in the linked quarter and up from 3.27% a year ago.
Net charge-offs totaled $38.1 million, compared to net charge-offs of $15.7 million in the linked quarter and net charge-offs of $6.9 million in the year-ago quarter.
At the end of the third quarter, nonperforming assets totaled $138.6 million, compared to $178.9 million in the linked quarter and down from $179.1 million a year ago.
Synovus' efficiency ratio improved to 50.62%, from 59.90% in the previous quarter and 63.13% in the third quarter of 2016.