The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Synovus posts Q2 loss after restructuring its bond portfolio

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.

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