Financial Data and Key Metrics - GAAP earnings per share (EPS) for Q3 2024 was $1.18, including an $8.7 million Visa valuation adjustment Adjusted diluted EPS was $1.23, up 6% sequentially, driven by stronger net interest income, lower provision for credit losses, and stable adjusted noninterest expense [4] - Net interest margin (NIM) expanded by 2 basis points to 3.22% in Q3 2024, with net interest income increasing by 1% sequentially [6] - Net charge-offs improved to 25 basis points in Q3 2024, down from 32 basis points in Q2 2024 [5] - Common equity Tier 1 (CET1) ratio reached 10.65%, the highest in nine years, and total risk-based capital stood at 13.62% [12] - Adjusted return on average assets (ROAA) was 1.3%, and adjusted return on tangible common equity (ROTCE) was 17.1% [7] Business Line Data and Key Metrics - Loan production increased by 8% sequentially and 6% year-over-year, with growth in middle market, Corporate and Investment Banking (CIB), and specialty lending lines [8] - Core deposit balances rose by $295 million (1%) sequentially, with growth in money market and operating accounts partially offset by declines in noninterest-bearing deposits [9] - Adjusted noninterest revenue declined by 4% sequentially but increased by 15% year-over-year, driven by growth in commercial sponsorship income, capital markets, and treasury and payment solutions [10] - Noninterest expense was relatively flat quarter-over-quarter and down 1% year-over-year, reflecting cost discipline and strategic investments [11] Market Data and Key Metrics - The company expects period-end loans to remain relatively flat in Q4 2024, with growth driven by middle market, CIB, and specialty lending lines, offset by CRE and senior housing payoffs [13] - Core deposit growth is expected to be within the 1% to 3% range in Q4 2024, aided by seasonal public funds tailwinds [13] - Deposit costs rose by 4 basis points to 2.72% in Q3 2024, with expectations for deposit costs to follow a 40% to 45% beta in Q4 2024 [9] Company Strategy and Industry Competition - The company is focused on strengthening its balance sheet and positioning for growth in 2025, with strategic investments in technology and infrastructure to drive long-term shareholder value [7] - Synovus is reducing nonrelationship lending and focusing on core client growth, particularly in middle market, CIB, and specialty lending lines [8] - The company is leveraging partnerships, such as with GreenSky, to drive growth in commercial sponsorship income and expand its card sponsorship business [6] Management Commentary on Operating Environment and Future Outlook - Management highlighted the impact of Hurricanes Helene and Milton on the community but expressed confidence in the resilience and recovery efforts [4] - The company expects a more constructive growth environment in 2025, with loan growth returning to normalized levels as strategic runoff and payoff activities abate [22] - Management anticipates margin expansion in 2025 as fixed-rate asset repricing tailwinds come into play, particularly after the easing cycle ends [16] Other Important Information - The company completed approximately $100 million in opportunistic share repurchases in Q3 2024, with $80 million remaining in the share repurchase authorization for 2024 [12] - Synovus received national recognition for its corporate culture, innovation, and client service, including being named number six in American Banker's top 20 banks on reputation [69] Q&A Session Summary Question: Margin expectations beyond Q4 2024 - Management expects the margin to remain relatively stable in Q4 2024 and early 2025, with potential expansion later in 2025 as fixed-rate asset repricing tailwinds unlock value [16][18] Question: Loan growth and production outlook for 2025 - Loan production has increased by 70% since Q1 2024, and management is optimistic about growth in 2025, driven by reduced uncertainty post-election and lower rates [21][22] Question: Impact of hedge maturities on hedge costs - $750 million in loan hedges will mature in Q4 2024, with an average rate of 95 basis points The hedge portfolio's effective rate is expected to increase to around 3% by Q2 2025 [24] Question: Capital markets income outlook - Capital markets revenue is expected to remain stable in Q4 2024, with a baseline of $10 million per quarter, driven by derivatives, syndications, and debt capital markets [27][28] Question: Deposit pricing and growth expectations - Deposit betas are expected to follow a 40% to 45% range, with core deposit growth anticipated to continue into 2025, supported by client growth and reduced headwinds [32][34] Question: Credit quality and nonperforming loans - Net charge-offs are expected to remain stable at 25 to 35 basis points in Q4 2024, with management confident in the strength and quality of the loan portfolio [19][30] Question: M&A strategy and industry consolidation - Synovus remains focused on organic growth, adding talent, and investing in technology rather than pursuing acquisitions, with a strong emphasis on market share gains in the Southeast [57] Question: Fixed-rate loan repricing impact in 2025 - Fixed-rate repricing is expected to contribute approximately 15 basis points to the margin in 2025, with the fixed-rate commercial loan book yielding 2% below current market rates [64][65]

Synovus Financial (SNV) reported $564.72 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 2.6%. EPS of $1.23 for the same period compares to $0.84 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $557.26 million, representing a surprise of +1.34%. The company delivered an EPS surprise of +12.84%, with the consensus EPS estimate being $1.09. While investors scrutinize revenue and earnings changes year-over-year and how they compare ...

Synovus Financial (SNV) came out with quarterly earnings of $1.23 per share, beating the Zacks Consensus Estimate of $1.09 per share. This compares to earnings of $0.84 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 12.84%. A quarter ago, it was expected that this holding company for Synovus Bank would post earnings of $0.96 per share when it actually produced earnings of $1.16, delivering a surprise of 20.83%. Over the last ...

Analysts on Wall Street project that Synovus Financial (SNV) will announce quarterly earnings of $1.08 per share in its forthcoming report, representing an increase of 28.6% year over year. Revenues are projected to reach $556.61 million, increasing 1.2% from the same quarter last year. The consensus EPS estimate for the quarter has been revised 4.2% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates durin ...

Shares of Synovus Financial Corp. (SNV) slid 2.1% after it announced that the third-quarter 2024 net interest income (NII) is likely to be impacted by the muted loan growth environment and the impact of expected Federal Reserve rate cuts. Other banks like Regions Financial Corporation's (RF) third-quarter 2024 NII is expected to be flat to up 2% from $1.2 billion in the second quarter. PNC Financial (PNC) anticipates its NII to rise 1-2% in third-quarter 2024 from $3.3 billion reported in the second quarter ...

Company Overview - Synovus Financial Corp. is the holding company for Synovus Bank, ranking as the 38th largest commercial bank in the U.S. with $59 billion in assets and 246 branches [3] - The company has issued a preferred stock, the Fixed-Rate Reset Non-Cumulative Preferred E, which was initially fixed and reset to an adjustable rate on July 1, 2023 [3][4] Preferred Stock Details - The E preferred stock has a yield of 8.507% based on a reference price of $25, combining a five-year Treasury rate of 4.38% and a spread of 4.127% [3] - The forward yield is approximately 8.3%, with the first payment at this rate scheduled for October 1, 2023, and an ex-dividend date of September 13, 2023 [3] - The E preferred became callable in July 2023, but the next call date and dividend reset will not occur until July 2029 [3] Comparative Analysis - Synovus' E preferreds yield 67 basis points lower than its D series, which floats based on SOFR and is expected to decline with Fed rate changes [4] - Other regional banks generally offer higher rates to attract investors, with Synovus' preferreds compared to those from Fifth Third Bancorp, Zions Bancorporation, Regions Financial, First Horizon, Banc of California, and KeyCorp [4] - The E preferred stock is expected to maintain a higher yield compared to floating rate securities if the Fed cuts rates significantly [4] Financial Metrics - Synovus maintains a Tier 1 capital ratio of 11.74%, which is above the regulatory minimum of 8.5% [6][7] - The net interest margin for Synovus in the second quarter was 3.20%, higher than the median for comparison banks [7] - The preferred stock is rated BB-, which is lower than some of its peers [6][7] Conclusion - The yield of over 8% on the E preferred stock appears attractive relative to the associated risks, suggesting a potential investment opportunity [8]

Core Viewpoint - Synovus Financial (SNV) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts, and is crucial for understanding a company's earnings outlook [1][4]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, largely due to institutional investors who adjust their valuations based on these estimates [4][6]. Recent Performance and Projections - Synovus is projected to earn $4.06 per share for the fiscal year ending December 2024, reflecting a year-over-year change of -1.5% [8]. - Over the past three months, the Zacks Consensus Estimate for Synovus has increased by 6.4%, indicating a positive trend in earnings estimates [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Synovus to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

A month has gone by since the last earnings report for Synovus Financial (SNV) . Shares have lost about 4.7% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Synovus due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Synovus Q2 Earnings Beat Estimates, Revenues Fall ...

Core Viewpoint - Adding Synovus Financial Corp. (SNV) stock to a portfolio is considered a wise decision due to strong fundamentals and growth potential, with a Zacks Rank 2 (Buy) indicating analyst optimism [1] Earnings Growth - SNV's earnings have grown by 9.3% over the last three to five years, with a projected decline of 1.5% for 2024, but an expected rise of 16% in 2025 [2] Mergers & Acquisitions - The company has been actively investing in mergers and acquisitions to enhance operations, including a 60% equity interest acquisition in Qualpay on June 1, 2023, and the acquisition of FCB Financial Holdings in 2019 [3] Balance Sheet Strength - As of June 30, 2024, SNV's total debt was $2.28 billion, while cash and cash equivalents stood at $2.29 billion, supported by long-term issuer credit ratings of BBB- and BBB, allowing access to favorable debt market rates [4] Capital Distributions - SNV has a robust capital deployment plan, including a $300 million share repurchase authorization and a 12% increase in its quarterly dividend to 38 cents per share in March 2023, reflecting strong balance sheet and liquidity [5] Return on Equity - The trailing 12-month return on equity (ROE) for SNV is 12.76%, significantly higher than the industry average of 9.07%, indicating superior utilization of shareholders' funds [6] Other Investment Opportunities - Other top-ranked stocks in the same sector include First Bancorp (FBNC) and First Community Corp (FCCO), both with Zacks Rank 2, showing upward revisions in earnings estimates and notable stock gains over the past six months [7][8]

Synovus Financial Corp.'s (SNV) emphasis on expanding its corporate, investment and middle-market commercial banking verticals is set to support its financials in the upcoming quarters. Balance sheet strength and strong liquidity position are other positives. However, escalating expenses due to investments in technology and a steady decline in mortgage banking income are near-term headwinds. SNV is focused on its organic growth strategy. The company aims to expand its corporate and investment banking and mi ...