Synovus Financial Corp. (NYSE:SNV)
A registered bank holding company that provides integrated financial services including banking, financial management, insurance, mortgage and leasing services through bank subsidiaries.
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Strong Fundamentals, baby thrown out with the bathwater in financial sector meltdown
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Expect some major changes in the coming years as this Regional bank restructures itself to take full advantage of it's operations in the SE US. TSYS will likely be spun off as it's business opportunities may be constrained by it's relationship with the bank. Consolidating the community bank operations under a single brand will help the company with the public's perception that it's just a small bank in one or two home towns, when in reality Synovus has a tremendous branch footprint in the SE (when viewed in total). I think Synovus becomes attractive to the bigger banks as a way to get into the SE if they don't already have a presence in that market....
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A well run financial institution based in growing demographic markets with a bonus exposure to electronic payment processing with best of breed in TSYS
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SNV is a very well-managed bank holding company. Successor leadership is strong, entered ATL market acquiring 2 of 3 best community banks & possible separation of Total Systems may be a plus to value.
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should benefit from higher interest
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The financial stocks will struggle during the next 18 months due to rising rates. Long term SNV is a bargain, located in high growth areas of southeast, has not over paid on aquisitions and great dividend growth.
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SNV owns 80% of a publicly traded TYSY. Within 1 year SNV is going to spin this ownership off to existing SNV shareholders. I calculate this will amount to a one time dividend equal to $11 per each share of SNV owned
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With SNV you get two stocks for the price of one! They are a great regional bank plus, they own 80% of TSS!
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