Executives at regional bank holding company Synovus Financial on Friday said they plan to redeem $968 million in preferred shares issued to the U.S. Treasury under the Troubled Assets Relief Program. The Georgia-based parent of The Bank of Nashville plans to sell $315 million in common and preferred shares and fund the rest of the payback through an upstream dividend from Synovus Bank.
“Today’s announcement of our planned TARP redemption represents the culmination of a journey to return Synovus to a position of strength,” said Kessel Stelling, Synovus Chairman and CEO. “We laid out and successfully executed a clear, deliberate, and aggressive plan to return Synovus to sustainable profitability. Key components of the plan included taking significant actions to strengthen credit quality, stabilize and remix the balance sheet, and improve operating efficiency while investing in the talent and technology that will enable us to support growth and enhance the customer experience.”