Synovus Financial Corp., which ranks 55th among all residential lenders nationwide, is reportedly entertaining the idea of a sale.
The Columbus, Ga., bank has sought the advice of investment bankers on its strategic options, including a possible sale, according to press reports appearing earlier in the week.
However, a decision was not imminent. The bank's longtime adviser is JPMorgan Chase & Co. Both Synovus and JPMorgan Chase declined to comment.
Jennifer Demba, a managing director at SunTrust Robinson Humphrey who follows Synovus, said she was caught off guard by the news.
"For now, my sense is that management believes that the company is seeing fundamental credit improvement," she said. "And they've implemented a large cost reduction program and they're going to let those fall to the bottom line and become profitable. So I would be surprised if the company were to put itself on the market today."
That said: "If someone approaches them and offers an attractive price I'm sure they would consider it," she added. "The franchise is scarce."
Synovus has been aggressive in trying to improve its credit metrics. The $30 billion-asset banking company said it disposed of $573 million of distressed assets during the fourth quarter, the most ever for the bank in one reporting period. And it drove nonperforming assets down to their lowest level in two years.
