Synovus Financial (SNV) to Divest Three Branches in Alabama
Recently, Synovus Financial Corp. SNV entered into a purchase-and-assumption agreement to divest three branches of its subsidiary— Synovus Bank— to Jefferson Financial Federal Credit Union. While two of the three branches are situated in Mobile, AL, the third one is located in Daphne. The sale will likely close by first-quarter 2019, after obtaining all regulatory approvals and fulfilling customary closing conditions.
Per the agreement, Synovus Bank will transfer loans amounting to $138 million and deposits worth $107 million, along with other assets belonging to the three branches. In return, the bank will receive a deposit premium of $14.5 million from Jefferson Financial. Notably, Jefferson Financial is a member-owned and not-for-profit financial institution.
Till the transaction’s conclusion, the branches will continue to function as part of Synovus Bank.
Synovus Financial has been aggressively disposing distressed assets to improve its capital base, which, in turn, will likely ensure a decent capital position for the long run. Also, the company has been trying to expand through opportunistic acquisitions. Lately, it announced plans to acquire FCB Financial Holdings FCB, which will consequently make Synovus the largest mid-cap bank in the Southeast in terms of deposits.
Shares of the company have inched up 1.2% compared with the industry’s rally of 9.7% over the past year.
Synovus Financial currently carries a Zacks Rank #2 (Buy).
A couple of better-ranked stocks in the same space are CBTX, Inc. CBTX and The First Bancshares, Inc. FBMS. Both stocks flaunt a Zacks Rank of 1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CBTX has been revised 8% upward for the current year, in the past 60 days. The company’s share price has jumped 20.5% in the past six months.
The First Bancshares has witnessed 2.3% upward earnings estimates revision for 2018, over the past 60 days. Its share price has rallied 23.6% in six months’ time.
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