Two of the largest banking companies based in Georgia improved their respective second-quarter results, with one, United Community Banks, posting its first quarterly profit since second quarter 2008.
In results released Thursday, Columbus-based Synovus Financial reported a much improved loss compared with last year's second quarter.
Blairsville-based United reported a profit to common shareholders of $4.6 million, or 8 cents per share, compared with a loss of $62.1 million, or $3.29 per share, in the quarter a year ago.
United President and CEO Jimmy Tallent said in an earnings release that the company's credit trends improved "by every measure and we expect that positive trend to continue."
United received $380 million in investor cash in March, helping it to flush $231.6 million of asset problems in the first quarter. The bank reported $16.5 million in charged-off loans from April to June, down 93 percent from last quarter and 73 percent from the quarter a year ago.
Nonperforming assets dropped 66 percent from a year ago to $118.6 million.
Both banks have been dogged for three years by soured real estate development loans -- particularly in metro Atlanta.
Synovus reported a net loss to common shareholders of $53.5 million, or 7 cents per share, compared with a $242.6 million loss, or 36 cents per share, in second quarter 2010. It was Synovus' 12th straight quarterly loss.
Nonperforming assets were $1.22 billion in the second quarter, down from $1.57 billion a year ago. Synovus charged off $167 million in bad loans, a 61.4 percent drop from a year ago.
The parent of Alpharetta-based Bank of North Georgia and 29 other community banks closed 31 branches networkwide in the quarter and is on pace to eliminate 850 positions in 2011 as part of previously announced cost cuts.
Synovus President and CEO Kessel Stelling told analysts that he still expects the company to return to the black sometime in 2011.
The results follow last week’s announcement by SunTrust Banks, Georgia’s biggest, of a $174 million profit.
“The bigger picture is clearly stabilization [for the state's biggest banks], and there’s a lot to be said for that,” said Chris Marinac, bank analyst with FIG Partners.
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