Synovus shares drop, profits plunge

Shares of Synovus Financial Corp. took a hit Thursday in advance of the regional bankholding firm's second-quarter earnings report.

The stock fell $1.05 per share to close at $9.33 — a 10 percent drop — in trading on the New York Stock Exchange. Synovus (Ticker: SNV) opened the day at $10.38 per share.

The company, headquartered in Columbus, released its revenue and earnings figures after the market's close.

Synovus reported a sharp drop in net income for the three-month period ended June 30. Profits plunged from $105.8 million, or 32 cents per share, in the period a year ago, to $12.1 million, or 4 cents per share, in the current period.

The deteriorating housing market has punished virtually every financial institution.

Synovus said its nonperfomring loans totalled $627 million during the second quarter, $111 more than in the first period. The struggling Atlanta market represents 58 percent of the bank's nonperforming loans connected to residential construction and development.