Oct. 23--Synovus Financial Corp. reported a third-quarter loss of $423.7 million Thursday, with the company saying it is continuing to work feverishly to unload troubled real-estate assets and keep a tight rein on expenses.

The loss translated to a $1.27 hit to earnings per share. In the same quarter a year ago, the company posted a $40 million loss, or 12 cents per share.

Stock market analysts polled by Thomson Reuters were expecting a loss of 67 cents per share before any one-time charges.

Synovus, headquartered in Columbus, reported a non-cash charge of $149 million in the quarter related to an increase in the valuation allowance for deferred tax assets.

"We knew coming in to the third quarter and going also into the fourth quarter that, due to these aggressive tactics, we would have some pressure on the bottom line," Richard Anthony, Synovus chairman and chief executive officer, said during a conference call with market analysts after the earnings were released.

Synovus said it disposed of $339 million in problem assets during the quarter and still is on track to shed a total of $600 million in assets in the third and fourth quarters combined.

The company also said it charged off nearly $497 million because non-performing assets and loans during the current quarter and beyond. It also had to pay more than $101 million in foreclosed real-estate costs. Over the last five quarters, Synovus has written off more than $1.9 billion in loan losses.

"We are confident, based on the progress we have made in addressing our NPAs in the quarter, that the third-quarter charge-offs will be a peak number," said Kevin Howard, Synovus' chief credit officer.

Howard said the regional bankholding company, which operates 30 banks in the Southeast, received an average of 46 cents on the dollar for its troubled assets during the quarter.

The reeling Atlanta real-estate market comprised about 40 percent of the disposed assets. The remainder of Georgia and parts of Florida and South Carolina also are hard-hit areas for the firm.

"We will continue to be proactive in recognizing our problem assets and valuing them," Anthony said. "The asset disposition plan will continue to be aggressive in the fourth quarter."

On the income side during the three-month period ending Sept. 30, Synovus reported net interest income of $254.6 million, down 4.9 percent from the same quarter in 2008.

Non-interest income totaled $96.7 million, off 2.2 percent from a year ago.