Synovus Financial in Columbus, Ga., reported lower quarterly profit after charging off an $18 million loan to an aviation company.
The $59.8 billion-asset company said in a press release that its first-quarter earnings fell by 41% from a year earlier, to $114.8 million. The loan-loss provision increased by 68% to $54 million.
Nonperforming loans would have declined in the first quarter if the aviation loan was excluded, Kevin Blair, Synovus’ chairman and CEO, said during a conference call to discuss first quarter results.
A “deep dive” of the multifamily portfolio found no major signs of weakness, Blair added. Synovus conducted similar analysis of office portfolio last year and its hospitality loans during the early days of the pandemic.
“We expect our net charge-offs to be flat to down in the second half of the year based upon our portfolio metrics and trends,” Blair said.
The lower quarterly results also included a $12.8 million special assessment from the Federal Deposit Insurance Corp.
Net interest income fell by 13% to $418.8 million, while noninterest income decreased by 11% to $118.9 million. Noninterest expenses were flat at $322.7 million.
Total deposits edged up by 1% to $50.6 billion; total loans fell by 2% to $43.3 billion.