Synovus Financial Corp. (NYSE:SNV)

Repaid TARP preferred.

>30 recycle

CHEAP!

A strong company with good management can overcome obstacles.

insider buying, but it's a terrible bank, so I'll probably do terribly with this, but it's worth a watch anyway

They are beginning to rid themselves of foreclosed properties. After that's all done. Look out!

Analysts like this one and are pumping it up to woo investors, this tends to make me think they are trying to raise the price only to dump it shortly thereafter.

Pessimistic? Maybe, but when analysts like a stock, I avoid it like Harold Camping avoids Pat Robertson.

Something could be good here. More than one director paid up to $2.80 per share on the open market in February. Pure speculation

I think it gets bought. The southeast is growing and will come back strong, eventually. They recently consolidated their multiple charters which could be for the cost savings as stated, but it also is something they would need to do before being acquired. They've always used the multiple charters as a big selling point that gives customers multiple protections for multiple pots of money. However, multiple charters makes the financials hard to understand. I immediately thought they may be prepping to be acquired when I heard they were consolidating the charters. I could be wrong because they did need every bit of cost cutting they could get, and consolidating the charters did yield that result. Either way, I think this bank is through the worst of it.

Cleaning up bad loans

Following JakilaTheHun and believe it's a good bang for the buck

Positively mentioned by Tom Brown in presentation I attended today. Maybe his most positive.

selloff in banks overdone

Synovus Financial Corp. shares have been battered over the past two years. The southeast regional bank is still trying to recover from the financial crisis that struck. The firm has reported a net loss for the past eight consecutive quarters, and most likely will report losses for the rest of 2010. The bank officials are confident of return to profitability by 2011, helped by improving credit trends. The company's efforts were evident in the most recent quarter as well as it managed to significantly trim its losses.

Quoting from Philip van Doorn of thestreet.com

Synovus recorded a "net loss $242.6 million or 36 cents a share, missing the consensus estimate of a 30 cent loss per share, among analysts polled by Thomson Reuters. The company reported a decline in nonperforming assets and while net charge-offs -- loan losses less recoveries -- totaled $433 million; its provision for loan losses was $299 million for the Q2 of 2010.

The $134 million reserve release followed the trend for many of the largest banks, which are turning the corner on asset quality and allowing their loan loss reserves to decline, which boosts earnings.

Other recent developments for Synovus include the company's move to reduce operating and regulatory expenses by combining its 30 separate bank charters into one. This was completed in June, although it's pretty obvious that it should have been done years earlier. Synovus also raised $1.1 billion in capital during the second quarter."

There is plenty to look forward to:

The bank is pursuing several capital initiatives and sees potential for recovery of deferred tax asset valuation allowance in 2011. Credit costs already appears to have peaked while new problem loans and chargeoffs have fallen. Meanwhile, the non-performing assets are being written off their books. Moreover, the company's loan loss provision is set to fall as well. The firm has already done a remarkable job in cutting the cost of operations and curbing expenses.

Meanwhile, the bank is poised to benefit from diminished competition as a number of banks in the south-east region are going out of business or being taken over by FDIC. The bank is also poised to benefit from a sustained recovery in housing market.

This 2.1 billion in market cap bank is one of the biggest regional banks, it was even once a $15 stock, and is gradually improving. Losses per quarter have been steadily decreasing and a possibility of profitability for 2011 is very likely. It pays a 1.5% dividend while we wait, the paying of the dividend shows confidence that the SNV will once again become profitable while loyal share holders benefit.

Plenty of analysts agree in that the company's poised for profit in 2011 but disagree in set target prices (Links: [http://business.nashvillepost.com/2010/03/29/analyst-action-pinnacle-synovus/], [http://www.theflyonthewall.com/permalinks/entry.php/SNVid1257520/SNV-Synovus-upgraded-to-Neutral-from-Underperform-at-Credit-Suisse], [http://www.theflyonthewall.com/permalinks/entry.php/SNVid1267801/SNV-Synovus-initiated-with-a-Positive-at-Susquehanna]), two states 29% (posted in March and June respectively) upside another 66% (posted in July). Morgan Keegan also has a positive outlook on the stock (Link: http://www.theflyonthewall.com/permalinks/entry.php/FITB;HBAN;MI;SNV;TCBI;ZIONid1249246/FITB;HBAN;MI;SNV;TCBI;ZION-Morgan-Keegan-positive-on-select-regional-banks).

Insider buying is a sign of confidence as well. There has been over $1.4 million bought at roughly $2.75 back in May alone (Link: http://www.insider-monitor.com/trading/cik18349.html), which is about the current price of $2.71.

Reward outweigh risks?

Synovus owes $968 million in bailout money, and has not missed any dividend payments on preferred shares held by the Treasury.

While the reported financials and the capital raise make a pretty clear case that Synovus is in pretty decent shape and heading toward profitability, there is a potential risk of dilution if the company decides to raise even more capital. Then again, shares are trading at a big enough discount to address some of that risk. For investors who can commit to the shares for at least three years and avoid reacting to the short-term swings of the market, Synovus looks like a nice recovery play.

Long SNV d($_$)b

Im really into banks right now. The bounce is coming I can feel it

2.58

WELL UNDERVALUED! Just raised 1 Bil with ease. When M&A kicks in watch this one

Currently in a fire sale

Currently very well-capitalized and in a position to have to problem surviving the Georgia RE market. Charge-offs have likely peaked.