Ga.-based Synovus Bank, the major banking subsidiary of
Synovus Financial Corp.
), acquired approximately $54 million in deposits - including all
uninsured deposits - of Valdosta, GA-based failed Sunrise Bank
from the Federal Deposit Insurance Corporation (FDIC). Sunrise
Bank, which operated through branches at Valdosta, Atlanta, and
Jeffersonville in GA, was a subsidiary of
Capitol Bancorp, Ltd.
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From May 13, depositors of Sunrise Bank will become depositors of
Synovus Bank. Deposits will continue to be insured by the FDIC
and the existing branches of Sunrise Bank will function as
temporary branches of Synovus Bank.
Bank of North Georgia, CB&T of Middle Georgia and First State
Bank and Trust are the divisions of Synovus Bank that will
operate in Atlanta, Jeffersonville and Valdosta respectively.
These branches will continue to serve the requirements of the
current customers of Sunrise Bank till the transition process to
Synovus is fully complete.
Management at Synovus believes that the clients of Sunrise Bank
will benefit from its long-standing expertise in Ga. market, as
well as its diverse range of products and solutions.
We believe the above-mentioned strategic acquisition is an effort
to mitigate the falling top line. Synovus is currently in a
recovery phase, driven by lower non-performing assets and
improving operating efficiencies. Further, repayment of Troubled
Asset Relief Program (TARP) dues, which is slated to take place
in the third quarter of 2013, is a positive. However, regulatory
issues, low interest environment and significant exposure to
residential real estate markets remain matters of concern.
Synovus currently carries a Zacks Rank #3 (Hold). Better
performing banking stocks include
Heritage Financial Group, Inc.
), both of which carry a Zacks Rank #1 (Strong Buy).