Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Whi ...

Financial Data and Key Metrics - Adjusted expenses for Q2 2024 were $306 million, excluding the FDIC reversal, and are expected to increase to around $310 million in Q3 2024, driven by higher personnel costs and infrastructure project spending [1] - The company expects a 1% increase in expenses from Q2 to Q3 2024, with similar levels holding in Q4 2024 [1] - For full-year 2024, expenses are expected to increase by 2% (midpoint of guidance), driven by merit increases, consolidation of Qualpay, and credit-related expenses [11] - The company's CET1 ratio is slightly above the target range of 10% to 10.5%, and management intends to manage capital at the higher end of this range due to economic uncertainty [12][132] Business Line Data and Key Metrics - Capital markets fee revenue surged 128% in Q2 2024 and is expected to remain elevated in the second half of the year, though there may be some quarter-to-quarter variability [7][18] - Loan production increased by 37% quarter-on-quarter in Q2 2024, reaching $1.3 billion, with pipelines up 8% quarter-on-quarter [62] - Senior housing loans declined by $196 million in Q2 2024, while national accounts and third-party consumer loans decreased by $223 million [101] - The company expects stable to higher total loans in the second half of 2024, driven by growth in key commercial segments [102] Market Data and Key Metrics - The southeastern U.S. economy is outperforming the broader U.S. economy, providing a favorable environment for the company's operations [34] - Deposit costs remained stable in Q2 2024, with a cycle-to-date total deposit cost beta of approximately 49% [104] - Non-interest-bearing deposit balances declined by $387 million in Q2 2024, but the pace of decline is slowing [103] Company Strategy and Industry Competition - The company is focusing on optimizing its balance sheet, reducing non-relationship lending, and prioritizing core client growth [101][122] - Investments in fraud detection, fraud prevention, and pricing analytics are ongoing, with some inflationary impacts expected [1] - The company is well-positioned for growth in its commercial and wealth management lines of business, with a strong value proposition for clients [80] Management Commentary on Operating Environment and Future Outlook - Management expects expenses to normalize in 2025, following efficiency efforts in 2023 that reduced costs and improved efficiency [3] - The company is optimistic about its ability to drive meaningful and sustainable growth, supported by a strong capital position and favorable economic conditions in its footprint [34][178] - Management anticipates net interest margin expansion in the second half of 2024, driven by fixed-rate asset repricing and the full impact of securities repositioning [127] Other Important Information - The company completed $91 million in share repurchases in Q2 2024 and plans to continue opportunistic buybacks to manage capital levels [92][130] - The allowance for credit losses (ACL) remained stable at $538 million, or 1.25% of loans, in Q2 2024 [128] - Net charge-offs declined to 32 basis points in Q2 2024, and management expects charge-offs to be flat to down in the second half of the year [129] Q&A Session Summary Question: Expense Drivers for 2025 - Management expects expenses to normalize in 2025, with 2024 benefiting from efficiency efforts in 2023 [3] Question: Capital Markets Fee Revenue Outlook - Capital markets fee revenue is expected to remain elevated in the second half of 2024, though there may be some quarter-to-quarter variability [7][18] Question: CET1 Ratio Management - The company intends to manage its CET1 ratio at the higher end of the 10% to 10.5% range due to economic uncertainty [12][132] Question: Loan Growth and Payoff Activity - Loan production increased significantly in Q2 2024, but payoffs and paydowns, particularly in senior housing and national accounts, offset this growth [62] Question: Deposit Trends - Non-interest-bearing deposit balances declined in Q2 2024, but the pace of decline is slowing, and deposit costs remain stable [103][104] Question: Credit Quality and Charge-Offs - Net charge-offs declined in Q2 2024, and management expects charge-offs to be flat to down in the second half of the year [129] Question: Fee Income Growth - Fee income growth is expected to be in the mid-single-digit range for 2024, with potential upside from capital markets and loan growth [147][150]

Company Performance - Synovus Financial (SNV) reported quarterly earnings of $1.16 per share, exceeding the Zacks Consensus Estimate of $0.96 per share, and matching the earnings from the previous year [1] - The company has surpassed consensus EPS estimates only once in the last four quarters [2] - Synovus posted revenues of $306.15 million for the quarter ended June 2024, which fell short of the Zacks Consensus Estimate by 38.35%, compared to year-ago revenues of $567.81 million [9] - The current consensus EPS estimate for the upcoming quarter is $1.01 on revenues of $558 million, and for the current fiscal year, it is $3.87 on revenues of $2.16 billion [12] Market Outlook - The estimate revisions trend for Synovus is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [5] - Synovus shares have increased approximately 20.7% since the beginning of the year, outperforming the S&P 500's gain of 18.8% [10] - The outlook for the industry, specifically the Banks - Southeast sector, is currently in the bottom 26% of over 250 Zacks industries, which may impact Synovus's stock performance [6] Future Expectations - The sustainability of Synovus's stock price movement will largely depend on management's commentary during the earnings call [3] - Investors are encouraged to monitor changes in earnings estimate revisions, as empirical research shows a strong correlation between these revisions and near-term stock movements [11]

| --- | --- | --- | --- | --- | --- | |-----------------------------------------------------------------------------------------------------------------------------|-------|------------------------|----------------------|-------------------------------------|-----------------------------------| | (Dollars in thousands, except per share data) \nInterest income | $ | 2024 1,583,952 | Six Months \n $ | Ended June 30, \n2023 1,476,022 | '24 vs '23 \n% Change 7 % | | Interest expense Net interest income Provisio ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momen ...

Analysts on Wall Street project that Synovus Financial (SNV) will announce quarterly earnings of $0.96 per share in its forthcoming report, representing a decline of 17.2% year over year. Revenues are projected to reach $496.57 million, declining 12.6% from the same quarter last year. Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical res ...

The earnings report, which is expected to be released on July 17, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. This holding company for Synovus Bank is expected to post quarterly earnings of $0.96 per share in its upcoming report, which represents a year-over-year change of -17.2%. Estimate Revisions Trend The market expects Synovus Financial (SNV) to deliver a year-over-year decline in earnings on lower ...

The company benefits from high interest rates. Its net interest income (NII) has seen a steady uptrend in the past few years. Management expects NII to improve in the second half of 2024, backed by fixed-rate investment securities portfolio repositioning, high asset yields and a decline in funding costs. Decent loan demand will also offer support to NII, thus driving top-line growth. As of Mar 31, 2024, SNV's total debt was $2.03 billion while cash and cash equivalents were $2.42 billion. Thus, given the co ...

Ratings and Outlook - Moody's affirmed Synovus Bank's long-term issuer rating at Baa3 and maintained its long- and short-term local currency deposit ratings at A3 and Prime-2, respectively [1] - The outlook for Synovus Bank's long-term issuer and deposit ratings remains stable [2][10] - Synovus Bank's Baseline Credit Assessment (BCA) and adjusted BCA of baa2, as well as its long- and short-term Counterparty Risk Ratings, were also affirmed [11] Financial Performance and Risk Management - Synovus Bank's capitalization, measured by TCE/risk-weighted assets (RWA), increased to 10.3% as of Mar 31, 2024, up from 9.7% a year earlier [12] - The bank's profitability is relatively strong, with an average net income to tangible assets ratio of 0.97% between 2019 and 2023 [4] - Synovus Bank has taken strategic initiatives, such as shifting its investment portfolio, to boost asset yields [13] - The bank's core deposit funding is about 68% insured or collateralized, which mitigates funding constraints [5] - Synovus Bank's liquidity profile is considered a strength, with 20.5% liquid banking assets to tangible banking assets as of Mar 31, 2024 [14] Commercial Real Estate (CRE) Concentration - Synovus Bank faces credit headwinds due to significant concentration in commercial real estate (CRE) loans [3] - The bank's higher level of capitalization and competent credit risk management help mitigate CRE concentration risks [4] - The recent sale of medical office building loans has strengthened the bank's resilience against CRE concentration risks [12] Potential Rating Changes - A deterioration in asset quality, increased risk appetite, or capital levels below 9.5% TCE/RWA could negatively impact Synovus Bank's ratings [6] - A continuous decline in profitability to a net income/tangible assets ratio of 0.6% or a steep decline in deposits and balance sheet liquidity levels could also pressure ratings [6] - An upgrade in the BCA is possible if Synovus maintains a TCE/RWA ratio well over 11%, significantly lowers asset risk, and improves pre-provision profitability and liquidity profile [15] Industry Comparison - Synovus Financial Corp's (SNV) shares have gained 0.3% year to date, compared with a 2.3% decline in the industry [16] - Truist Financial's (TFC) long-term senior unsecured debt rating was downgraded to Baa1 from A3 in May 2024 [18] - New York Community Bancorp, Inc's (NYCB) Long-Term Issuer Default Ratings were downgraded to BB from BB+ by Fitch Ratings in May 2024, though the outlook remains stable [19]

______________________________ ☒ Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2024 Commission file number 1-10312 ______________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________ FORM 10-Q SYNOVUS FINANCIAL CORP. Georgia 58-1134883 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1111 Bay Avenue, Suite 500 ...