Synovus sells $600 million in new shares to bolster balance sheet; United Community to sell $175 million in shares

By Paul Donsky

The Atlanta Journal-Constitution

Synovus, Georgia’s second-largest banking company, said Wednesday that it had completed a $600 million stock sale, a move that will shore up its balance sheet and put it in a position to purchase failed banks.

The Columbus-based bank holding company, which has been hammered by real estate-related losses over the past year, said it had sold 150 million shares at a price of $4 per share.

“We believe the market’s response to our public offering demonstrates its confidence in the future of Synovus as we seek to emerge stronger from this tough economic cycle,” Richard Anthony, Synovus’ president and CEO, said in a news release.

The previously announced stock sale brought in more money than analysts had expected. It comes on top of $973 million Synovus received from the federal government last year as part of the Treasury Department’s Troubled Asset Relief Program.

Also Wednesday, United Community Banks, the state’s third-largest bank, said it planned to raise $175 million by selling stock. Bank officials said they planned to sell the stock by the close of business Thursday.

The sale “puts us in a position to more aggressively resolve our problem loans to allow us to move much faster to profitability,” said Rex Schutte, United’s executive vice president and chief financial officer.

United’s stock price dropped 8.5 percent Wednesday, closing at $6.56 per share.