Financial Data and Key Metrics Changes - Synovus reported adjusted earnings per share of $1.30, a 4% increase from the previous quarter and a 65% increase year-over-year. Excluding the FDIC special assessment, adjusted earnings per share rose 53% [7][8] - Net interest income was $454 million, up 8% year-over-year and flat sequentially, with a net interest margin of 3.35%, an increase of seven basis points from the previous quarter [16][17] - Adjusted non-interest revenue was $117 million, a decline of 6% sequentially but an increase of 1% year-over-year [22] Business Line Data and Key Metrics Changes - Funded loan production was the highest since Q4 2022, leading to loan growth of $40 million in the quarter, with an annualized growth rate of 8% in high-growth lines of business [9][18] - Core deposits increased by 3% year-over-year, with positive trends in the overall deposit mix despite a decline in time deposits [20] - Adjusted non-interest expense was flat on a linked quarter basis and down 3% year-over-year, driven by controlled employment and project-related costs [24] Market Data and Key Metrics Changes - A commercial client survey indicated a rise in negative sentiment, with 17% of clients expecting business activity to decline over the next 12 months, up from 10% last quarter [9][10] - 41% of clients believe business activity will increase over the next 12 months, unchanged from the previous survey [10] Company Strategy and Development Direction - The company is focused on mitigating risks from an economic slowdown while seizing opportunities where it has a competitive advantage [12] - Synovus plans to maintain a loan growth target of 3% to 5% for 2025, primarily from middle market, corporate and investment banking, and specialty lending [32][34] - The company is committed to investing prudently to optimize long-term growth while managing overall expense growth [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health and resilience of the balance sheet despite economic uncertainties, emphasizing proactive balance sheet management and diversified business mix [11] - The outlook assumes moderate growth conditions with four Fed funds cuts throughout the year, impacting net interest margin [32][36] Other Important Information - The capital position remained strong with a preliminary common equity tier one ratio of 10.75% and total risk-based capital at 13.65% [28] - The company is engaged in efforts to identify risks associated with recent policy changes, including outreach to clients and monitoring tools [27] Q&A Session Summary Question: Can you talk about the lending environment and what factors might influence loan growth? - Management noted that recent tariff policy announcements have introduced uncertainty, but 41% of clients still expect business activity to increase. Loan production is expected to continue growing based on strong pipelines [43][45][46] Question: Was the strong loan production due to borrowers stockpiling inventories before tariffs? - Management clarified that while some industries saw an uptick, overall line utilization did not indicate significant stockpiling, and production was broad-based across various sectors [63][65] Question: How do you view the margin outlook given recent changes? - Management expressed satisfaction with the margin trajectory, expecting it to remain stable in the near term, but noted potential pressure from Fed policy changes [55][56] Question: Can you provide more detail on the impact of DC policy changes on your customer base? - Management indicated that about 15% of top borrowers felt a meaningful impact from policy changes, but overall exposure is limited. The company is actively engaging with affected clients [93][94][96] Question: What is the outlook for capital markets revenue? - Management noted that capital markets revenue was impacted by a lower volume of large loans and client preferences for floating rates, but expects improvement as loan production increases [108][110]

Core Insights - Synovus Financial reported revenue of $571.67 million for the quarter ended March 2025, reflecting a year-over-year increase of 6.3% and a surprise of +0.26% over the Zacks Consensus Estimate of $570.2 million [1] - The earnings per share (EPS) for the quarter was $1.30, significantly higher than the $0.79 reported in the same quarter last year, resulting in an EPS surprise of +17.12% compared to the consensus estimate of $1.11 [1] Financial Performance Metrics - Net interest margin was reported at 3.4%, exceeding the average estimate of 3.3% from four analysts [4] - The efficiency ratio was 53.8%, better than the average estimate of 55.2% from four analysts [4] - Net charge-offs as a percentage of average loans for the quarter were 0.2%, lower than the average estimate of 0.3% based on three analysts [4] - Total interest-earning assets averaged $55.13 billion, slightly below the estimated $55.65 billion from three analysts [4] - Non-performing loans (NPLs) were reported at $286.63 million, compared to the estimated $318.40 million from two analysts [4] - Non-performing assets (NPAs) stood at $287.19 million, also better than the average estimate of $319.15 million from two analysts [4] - Total non-interest revenue was $116.47 million, below the average estimate of $125.36 million from four analysts [4] - Net interest income on a taxable equivalent basis was $455.96 million, surpassing the estimate of $449.53 million from three analysts [4] - Card fees generated $21.23 million, exceeding the average estimate of $19.19 million from two analysts [4] - Capital markets income was reported at $6.94 million, lower than the estimated $10.83 million from two analysts [4] - Brokerage revenue was $20.36 million, slightly below the average estimate of $21.28 million from two analysts [4] Stock Performance - Over the past month, Synovus shares have returned -12.1%, compared to a -4.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Performance - Diluted earnings per share for Q1 2025 was $1.30, a 67% increase year-over-year from $0.78 in Q1 2024[2][4] - Net income available to common shareholders was $183.7 million, compared to $114.8 million in Q1 2024, reflecting strong financial performance[4][5] - Net income attributable to Synovus Financial Corp. rose by 57% to $195,014 in Q1 2025, up from $124,507 in Q1 2024[10] - Adjusted net income for Q1 2025 was $195,561,000, up from $188,860,000 in Q4 2024 and $125,221,000 in Q1 2024, representing a year-over-year increase of 56.0%[27] Revenue and Income - Pre-provision net revenue was $262.8 million, up 22% from $216.3 million in Q1 2024, driven by increased net interest income[4][7] - Non-interest revenue was $116.5 million, down 2% from Q1 2024, primarily due to lower capital markets income[7] - Adjusted revenue for Q1 2025 was $573,243,000, compared to $581,054,000 in Q4 2024 and $536,745,000 in Q1 2024, reflecting a year-over-year increase of 6.8%[26] - Total revenue for Q1 2025 was $570,850,000, compared to $580,580,000 in Q4 2024 and $537,734,000 in Q1 2024, showing a year-over-year increase of 6.1%[26] Net Interest Income - Net interest income increased by $35.5 million, or 8%, year-over-year, with a net interest margin of 3.35%[4][5] - Net interest income for Q1 2025 was $454,384, an increase of 8% year-over-year from $418,846 in Q1 2024[10] - Net interest income for Q1 2025 was $454,384,000, slightly down from $454,993,000 in Q4 2024 but up from $418,846,000 in Q1 2024, indicating a year-over-year growth of 8.5%[26] Credit Quality - Provision for credit losses decreased by 80% year-over-year to $10.9 million, indicating improved credit quality[7] - Provision for credit losses significantly decreased by 80% to $10,921 in Q1 2025 from $53,980 in Q1 2024[10] - Non-performing loans (NPLs) decreased by 18% year-over-year to $286,629 from $350,450[21] - The allowance for loan losses (ALL) was $478,207, a 3% decrease from $492,661 year-over-year[21] Expenses and Efficiency - Total non-interest expense decreased by 5% to $308,034 in Q1 2025 from $322,741 in Q1 2024[10] - The efficiency ratio improved to 53.81%, down from 59.87% in Q1 2024, demonstrating better expense management[5][7] - Total non-interest expense for Q1 2025 was $308,034, down from $322,741 in Q1 2024, indicating improved cost management[25] Assets and Liabilities - Total assets increased to $60.34 billion as of March 31, 2025, compared to $60.23 billion at the end of 2024, reflecting a growth of 0.18%[16] - Total loans at the end of Q1 2025 were $42.65 billion, a decrease of 2% from $43.31 billion in Q1 2024[5][8] - Total deposits were $50.84 billion, reflecting a slight increase of 1% year-over-year[5][9] - Interest-bearing liabilities totaled $41.04 billion, with a net interest margin of 3.35% for the first quarter of 2025[17] Capital Ratios - The Common Equity Tier 1 ratio was 10.75%, indicating a strong capital position[7] - The common equity tier 1 capital ratio stood at 10.75%, slightly down from 10.84% in the previous quarter[22] - The total risk-based capital ratio was 13.65%, down from 13.81% in the previous quarter[22] Returns - Return on average assets improved to 1.32% in Q1 2025, up from 0.85% in Q1 2024[15] - Return on average common equity increased to 15.48% in Q1 2025, compared to 10.17% in Q1 2024[15] - Adjusted return on average common equity (annualized) for Q1 2025 was 15.54%, compared to 14.71% in Q4 2024 and 10.27% in Q1 2024[28] Branch and Asset Information - Synovus operates 244 branches across five states as of March 31, 2025[12] - The company has approximately $60 billion in assets as of the latest reporting date[12]

The upcoming report from Synovus Financial (SNV) is expected to reveal quarterly earnings of $1.11 per share, indicating an increase of 40.5% compared to the year-ago period. Analysts forecast revenues of $570.2 million, representing an increase of 6% year over year.The consensus EPS estimate for the quarter has undergone a downward revision of 0.7% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during thi ...

Synovus Financial (SNV) shares rallied 11.9% in the last trading session to close at $42.82. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 12.7% loss over the past four weeks.Synovus witnessed a strong price increase driven by President Donald Trump's unanticipated announcement on April 9, 2025, of a 90-day suspension of reciprocal tariffs for most trading partners, excluding China. The tariff pause eased i ...

Synovus Financial (SNV) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on April 16, 2025, might help the stock move higher if these key numbers are better tha ...

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.It also includes access to the Zacks Style Scores. ...

Core Insights - Synovus Financial Corp. has partnered with Carefull to enhance fraud prevention measures for its customers, particularly targeting the protection of older adults against scams and financial errors [1][2][7] - The collaboration aims to provide additional safeguards and improve the overall banking experience for Synovus clients by monitoring accounts for signs of fraud and offering various financial safety tools [3][4] Collaboration Details - The partnership with Carefull is a response to the growing issue of fraud in the U.S., with consumers losing an estimated $158.3 billion, highlighting the need for stronger defenses against exploitation, especially for older adults [2][6] - Carefull's services include monitoring investment, bank, and credit card accounts, credit monitoring, identity tracking, and a secure digital vault for important documents [3][4] Family Involvement - The integration of family members in monitoring through Carefull's Trusted Contacts function allows for a multigenerational approach to financial safety, increasing the likelihood of early detection of fraudulent activities [4][6] Management Perspectives - Synovus executives emphasize the importance of building trusted relationships with clients and positioning the bank as a first line of defense against fraud [5][6] - Carefull's co-founder highlights the critical need to protect older adults, who hold 65% of U.S. deposits and are frequently targeted by scams [6] Strategic Positioning - The collaboration reflects Synovus' commitment to client protection and financial security, aiming to differentiate its banking experience and enhance client satisfaction [7] - Synovus has been actively working to improve its service offerings and strengthen its reputation as a trusted financial institution across multiple states [7] Recent Developments - In December 2024, Synovus launched Accelerate Trade, a portal designed to improve efficiency and transparency in managing global trade finance products for international business clients [8] Performance Metrics - Over the past six months, Synovus shares have increased by 13.6%, outperforming the industry growth of 3% [9]

Financial Overview - As of December 31, 2024, Synovus Financial Corp. had total consolidated assets of $60.23 billion and total consolidated deposits of $51.10 billion[25]. - The company had $1.73 billion of long-term debt outstanding as of December 31, 2024, impacting its ability to service debt and fund capital expenditures[168]. - The primary source of liquidity for the company consists of dividends from Synovus Bank, which are subject to regulatory restrictions[160]. - The company is currently exceeding all minimum regulatory capital requirements and is considered well-capitalized, but there is no guarantee that it will not need to increase capital levels in the future[178]. Employee and Workforce Insights - Approximately 32% of Synovus employees were in Consumer Banking, with a total workforce of 4,775 employees[37]. - The voluntary turnover rate for Synovus was only 11%, with an average employee tenure of nine years[39]. - In 2024, 45% of the 1,118 open positions filled were by internal hires, and 14% of the workforce received promotions[39]. - As of December 31, 2024, 64% of Synovus employees were women, and 31% were people of color, with 39% of senior leadership being women[43]. Regulatory Compliance and Capital Requirements - Synovus Bank is required to maintain certain minimum capital levels based on ratios of capital to total assets and capital to risk-weighted assets[67]. - The required minimum leverage ratio for all banks and bank holding companies is 4%[69]. - A capital conservation buffer of 2.5% above each of the minimum risk-based capital ratio requirements is required to absorb losses during periods of economic stress[70]. - The Federal Reserve requires bank holding companies to maintain a Tier 1 risk-based capital ratio of 6.0% or greater to be considered well-capitalized[73]. - As of December 31, 2024, Synovus Bank's CET1 capital ratio was 11.81%, exceeding the required 6.5% for being well-capitalized[75]. - The total risk-based capital ratio for Synovus Bank was 13.31%, above the minimum requirement of 10.0%[75]. - Synovus Bank's leverage ratio stood at 9.44%, surpassing the required 5.0%[75]. Strategic Initiatives and Growth Plans - Synovus' strategic plan for 2025 focuses on accelerated growth investments in middle market banking, specialty lending, and wealth services[30]. - The company is continuously implementing strategic initiatives to achieve growth, reduce expenses, and unlock efficiencies, including expanding middle market commercial banking and investing in technology such as automation and artificial intelligence[121]. - The company may pursue bank and non-bank acquisition opportunities, but competition for attractive acquisitions could limit its ability to complete them on favorable terms[126]. Cybersecurity and Risk Management - The bank's cybersecurity protocols are designed to comply with enhanced SEC disclosure requirements effective December 2023[102]. - Cybersecurity risks, including e-fraud and loss of sensitive client data, remain significant, with potential reputational and legal costs[135]. - The company has established anti-fraud actions, including preventative and responsive measures, but acknowledges inherent limitations in its risk management strategies[140]. - The company employs a formal risk management process for cybersecurity, aligning with industry standards to mitigate risks and enhance preparedness[199]. - Synovus has a comprehensive cybersecurity program that includes regular updates and testing of its Business Continuity/Disaster Recovery program[200]. Economic and Market Conditions - Inflationary pressures have significantly impacted profitability, with inflation rates rising to levels not seen in over 40 years, although a decline was noted in the second half of 2023[180]. - The company faces risks from unstable economic conditions, including increased charge-offs and a potential decrease in demand for loans and services due to economic downturns[181]. - Recent bank failures have diminished public confidence in regional banks, potentially leading clients to maintain deposits with larger institutions, which could adversely affect the company's liquidity and net interest margin[184]. Shareholder Actions and Stock Performance - The Board of Directors approved share repurchases of up to $300 million of common stock and $50 million of preferred stock in 2024[219]. - In the fourth quarter of 2024, Synovus repurchased a total of 940 thousand shares at an average price of $52.40 per share[220]. - The Board approved additional share repurchases of up to $400 million of common stock and $50 million of preferred stock in 2025[221]. Regulatory Environment and Compliance Costs - The Dodd-Frank Act mandates that incentive compensation arrangements should not encourage inappropriate risks by the institution[64]. - The FDIC approved a final rule requiring banks with at least $50 billion in total assets to submit "informational" resolution plans every three years[65]. - Regulatory changes and compliance costs could significantly impact the company's business operations and financial condition[172]. - The company may become subject to supervisory actions that could adversely affect its business, reputation, and financial condition[174].

Core Insights - The Lead-Lag Report focuses on helping investors outperform in various market conditions through a tactical, data-driven investment approach [1] - The report emphasizes the importance of understanding risk-on/risk-off signals and seizing high-yield opportunities amid increasing market volatility [1] Group 1 - The Lead-Lag Report is managed by Lead-Lag Publishing, LLC, and provides independent trading signals that may differ from other services offered by the company [2] - The report's opinions and views are subject to change and are not intended as a primary basis for investment decisions [2] - Investing involves risks, including the potential loss of principal, and past performance is not indicative of future results [2] Group 2 - Seeking Alpha clarifies that past performance does not guarantee future results and that no specific investment recommendations are provided [3] - The views expressed in the report may not reflect those of Seeking Alpha as a whole, and the analysts may not be licensed or certified [3]