Synovus Financial in Columbus, Ga., posted a net loss in the second quarter after purging its securities portfolio.
The $60 billion-asset company lost $14.7 million in the quarter, a reversal from the $173.9.8 million it earned a year earlier.
Synovus sold $257 million of bonds during the quarter at a discount. The company plans to reinvest the proceeds into higher-yielding investments and loans.
The net interest margin, which widened by 16 basis points from a quarter earlier, to 3.20%, is expected to increase more over the next two quarters.