Synovus says will take $155 million pre-tax charge on sale of bad loans
(Reuters) - Synovus Financial Corp (SNV.N) said it will take a pre-tax charge of $155 million in the fourth quarter after it sold distressed assets worth $530 million.
The lender also said it expects to reverse its deferred tax asset valuation allowance of $787 million as early as the end of the fourth quarter but no later than the second quarter of 2013.
The reversal will allow Synovus to repay the bailout funds it received under the Troubled Asset Relief Program (TARP). Synovus said it expects to repay the TARP funds as early as the second quarter of 2013 and no later than the fourth quarter.
Synovus is saddled with almost $1 billion in government bailout money as it was stuck with bad loans that have dogged it since the housing crisis.
Shares of Synovus, which have risen about 61 percent since the beginning of the year, were up 1.6 percent at $2.50 before the bell. They had closed at $2.46 on the New York Stock Exchange on Wednesday.
(Reporting by Tanya Agrawal in Bangalore; Editing by Supriya Kurane)