Synovus Financial, regional bank in the southeastern US, is weighing options including a potential merger after drawing interest https://t.co/nZ9X2LZ6K0 ...

Core Insights - Synovus Financial's shares have shown a strong recovery from April lows, approaching a 52-week high and demonstrating solid year-over-year growth [1] Financial Performance - The company reported solid results after the market close on Wednesday, indicating improvements in its financial metrics [1]

Core Insights - Synovus Financial Corp. reported second-quarter 2025 adjusted earnings per share of $1.48, exceeding the Zacks Consensus Estimate of $1.25 and up from $1.16 a year ago [1][10] - The results were driven by significant year-over-year growth in net interest income and non-interest revenue, alongside a reduction in provisions for credit losses [1][10] Financial Performance - Net income available to common shareholders was $206.3 million, a recovery from a loss of $23.7 million in the prior-year quarter [2] - Total revenues reached $593.7 million, a 93.9% increase from the prior-year quarter, surpassing the Zacks Consensus Estimate by 1.7% [3][10] - Net interest income rose 5.6% year over year to $459.6 million, with the net interest margin expanding by 17 basis points to 3.37% [3] - Non-interest revenues were $134.1 million, compared to a negative $128.8 million in the prior-year quarter, driven by higher core banking fees, wealth management income, and capital markets income [4] Expenses and Efficiency - Non-interest expenses increased by 4.6% year over year to $315.7 million, primarily due to higher employment expenses [4] - The adjusted tangible efficiency ratio improved to 52.3%, down from 53.1% in the year-earlier quarter, indicating increased profitability [5] Loan and Deposit Trends - Total loans amounted to $43.5 billion, reflecting a 2.1% increase from the previous quarter [6] - Total core deposits were $49.9 billion, a decline of 1.8% from the previous quarter [6] Credit Quality - Non-performing loans were $257.4 million, a slight increase from the year-ago quarter, while total non-performing assets rose to $258.6 million [7] - Provisions for credit losses significantly decreased by 87.7% year over year to $3.2 million [7] - Net charge-offs fell by 46.9% to $18.3 million, with the net charge-off ratio decreasing to 0.17% from 0.32% in the prior-year quarter [8] Capital Ratios and Profitability - As of June 30, 2025, the Tier 1 capital ratio was 12.01%, and the total risk-based capital ratio was 13.74%, both improved from the previous year [11] - Adjusted return on average assets increased to 1.46% from 1.21%, and adjusted return on average common equity rose to 16.71% from 15.31% [11]

Company Overview - Synovus Financial (SNV) is based in Columbus and operates in the Finance sector, with a year-to-date share price change of 3.2% [3] - The company currently pays a dividend of $0.39 per share, resulting in a dividend yield of 2.95%, which is higher than the Banks - Southeast industry's yield of 2.34% and the S&P 500's yield of 1.54% [3] Dividend Performance - The annualized dividend of Synovus Financial is $1.56, reflecting a 2.6% increase from the previous year [4] - Over the past five years, the company has increased its dividend three times, achieving an average annual increase of 4.48% [4] - The current payout ratio is 32%, indicating that the company distributes 32% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, Synovus Financial anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $5.10 per share, representing a year-over-year growth rate of 15.12% [5] Investment Considerations - Synovus Financial is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6] - Income investors are attracted to dividends for various reasons, including tax advantages and reduced overall portfolio risk [5]

Financial Data and Key Metrics Changes - Synovus reported GAAP and adjusted earnings per share of $1.48, with adjusted earnings per share increasing 14% from the first quarter and 28% year over year [6][10] - Adjusted pre-provision net revenue rose 5% sequentially and grew 7% from the second quarter of 2024 [6] - Net interest margin expanded modestly, contributing to a 6% year-over-year net interest income growth in the second quarter [11][12] - Capital ratios improved, with the preliminary common equity Tier one ratio at 10.91%, the highest in the company's history [17][18] Business Line Data and Key Metrics Changes - Loan growth was strong and broad-based, with period-end loan balances up $888 million or 2% from the first quarter [12] - Specialty lending rose $353 million sequentially, driven by growth in structured lending and restaurant services lending [12] - Adjusted non-interest revenue was $131 million, increasing 12% sequentially and 3% year over year [13][14] Market Data and Key Metrics Changes - Core deposits declined $788 million or 2% from the first quarter, primarily due to a drop in public funds [13] - Average cost of deposits declined four basis points to 2.22% in the second quarter [13] - The company expects core deposit growth of 1% to 3% in the second half of the year, driven by seasonal benefits and investments in deposit specialties [20] Company Strategy and Development Direction - Synovus is focused on accelerated hiring of relationship managers, adding 12 new commercial bankers in the second quarter [8][19] - The company aims to maintain a disciplined approach to expense management while investing in areas that deliver long-term shareholder value [21] - The strategic initiatives include enhancing client service and expanding capabilities to compete effectively in the market [9][92] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future business growth despite concerns regarding government fiscal and trade policy actions [9] - The outlook for 2025 has been revised to reflect increased revenue growth expectations, with loan growth projected at 4% to 6% [19][20] - Management anticipates stable credit quality and net charge-offs in 2025, with a focus on loan growth rather than share repurchases [22][76] Other Important Information - The company achieved a 60% year-over-year increase in total funded loan production in the second quarter [10] - Non-performing loans improved to 0.59% of total loans, down from 0.67% in the first quarter [16] - The tax rate was approximately 21% in the second quarter, with expectations for a full-year rate between 21% and 22% [23] Q&A Session Summary Question: Can you talk about loan growth and borrower sentiment? - Management noted that loan growth was driven by hard work and a strong team, with production and pipelines up about 10% entering the second quarter [28][30] Question: What are the expectations for deposit growth? - Management indicated that the decline in deposits was strategic, leading to margin expansion, and expects core client growth and seasonal benefits to drive deposit growth in the second half [36][38] Question: How is the competitive landscape affecting pricing? - Management acknowledged ongoing competition for loans and deposits, with modest pricing pressure observed [42][44] Question: What is the outlook for capital allocation and buybacks? - Management emphasized a preference for loan growth over share repurchases, maintaining a strong capital position [75][76] Question: Can you provide insights on credit quality and net charge-offs? - Management reported better-than-expected credit quality, with continued resolution of larger office relationships contributing to improved metrics [104][106] Question: What is the regulatory environment like? - Management expressed optimism about a favorable regulatory environment, which could provide more flexibility for growth and M&A opportunities [109][110]

Financial Data and Key Metrics Changes - Synovus reported GAAP and adjusted earnings per share of $1.48, with adjusted earnings per share increasing 14% from the first quarter and 28% year over year [5] - Adjusted pre-provision net revenue rose 5% sequentially and grew 7% from the second quarter of 2024 [5] - Net interest margin expanded modestly, contributing to a 6% year-over-year net interest income growth in the second quarter [10][15] - Capital ratios improved, with the preliminary common equity Tier one ratio at 10.91%, the highest in the company's history [15][22] Business Line Data and Key Metrics Changes - Loan growth was strong and broad-based, with total loan production increasing 34% quarter over quarter and 60% year over year [11][12] - Specialty lending rose by $353 million sequentially, driven by growth in structured lending and restaurant services lending [11] - Core deposits declined by $788 million or 2% from the first quarter, primarily due to a drop in public funds and time deposits [12] Market Data and Key Metrics Changes - Synovus had the sixth highest Net Promoter Score among the largest 50 banks, with the largest year-over-year increase in this group [7] - Client surveys indicated general optimism for future business growth despite concerns regarding government fiscal and trade policy actions [7] Company Strategy and Development Direction - The company is focused on executing its 2025 strategic initiatives, including the accelerated hiring of relationship managers, with 12 new commercial bankers added in the second quarter [6][19] - Synovus aims to maintain a balanced approach to expense management while investing in areas that deliver long-term shareholder value [20] - The company expects to target loan growth rather than share repurchases, indicating a preference for deploying capital towards growth opportunities [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued loan growth, with pipelines expected to be 14% higher entering the third quarter [32] - The credit loss environment is anticipated to remain stable, with net charge-offs expected to be relatively stable compared to the first half of the year [21] - The company has raised its 2025 net interest income and noninterest revenue outlook while maintaining noninterest expense guidance [22] Other Important Information - The tax rate was approximately 21% in the second quarter, with expectations for the full year to be between 21-22% [22] - The company is actively monitoring economic uncertainties and adjusting its credit loss reserves accordingly [75] Q&A Session Summary Question: Can you talk about the change in sentiment from borrowers? - Management noted that loan growth was driven by hard work and a strong team, with production and pipelines up about 10% entering the second quarter [27][30] Question: What are your expectations for deposit growth? - Management indicated that the decline in deposits was strategic, leading to margin expansion, and they expect core deposit growth in the second half of the year [34][38] Question: How is the competitive landscape affecting pricing? - Management acknowledged ongoing competition for loans and deposits, with modest pricing pressure observed [42][44] Question: Can you elaborate on the decision to add to reserves? - The increase in reserves was driven by economic uncertainty, particularly changes in unemployment rates, despite improvements in the loan portfolio [72][74] Question: What is the outlook for capital allocation? - Management emphasized a preference for loan growth over share repurchases, maintaining a strong capital position [76][77]

Financial Performance - Net interest income increased by 1% QoQ to $459561 thousand[7] and 6% YoY[7] - Non-interest revenue increased significantly by 15% QoQ and 204% YoY to $134135 thousand[7] - Total revenue grew by 4% QoQ and 94% YoY reaching $593696 thousand[7] - Adjusted diluted EPS increased by 14% QoQ and 28% YoY to $148[7] - Adjusted revenue is expected to be between $495 million and $515 million for 2025[38] Balance Sheet - Loans increased by 2% QoQ to $43537 million[9] and 1% YoY[9] - Deposits decreased by 2% QoQ to $49925 million[9] and 1% YoY[9] - Core deposits decreased by 2% QoQ but increased by 1% YoY, reaching $45208 million[9] - Non-interest bearing deposits remained relatively stable at $11658 million[9] Credit Quality & Capital - The net charge-off ratio improved to 017%[9] - The non-performing loan ratio remained stable at 059%[9] - The CET1 ratio increased to 1091%[9]

Core Viewpoint - Synovus Financial reported quarterly earnings of $1.48 per share, exceeding the Zacks Consensus Estimate of $1.25 per share, and showing an increase from $1.16 per share a year ago, indicating a strong performance in the recent quarter [1][2]. Financial Performance - The company achieved revenues of $590.42 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.13%, and significantly up from $306.15 million in the same quarter last year [2]. - Over the last four quarters, Synovus has consistently exceeded consensus EPS estimates and revenue expectations [2]. Stock Performance and Outlook - Synovus shares have increased approximately 2.5% since the beginning of the year, while the S&P 500 has gained 6.2%, indicating underperformance relative to the broader market [3]. - The current consensus EPS estimate for the upcoming quarter is $1.27, with expected revenues of $595.96 million, and for the current fiscal year, the estimates are $5.10 on $2.35 billion in revenues [7]. Industry Context - The Banks - Southeast industry, to which Synovus belongs, is currently ranked in the top 25% of over 250 Zacks industries, suggesting a favorable environment for performance [8]. - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5].

[Executive Summary](index=1&type=section&id=Executive%20Summary) Synovus delivered strong Q2 2025 results with significant EPS growth, improved operational efficiency, and strengthened capital, leading to raised full-year guidance [Overall Performance and Strategic Highlights](index=1&type=section&id=Overall%20Performance%20and%20Strategic%20Highlights) Synovus achieved strong Q2 2025 results with **28% adjusted EPS growth**, **8% annualized loan growth**, improved efficiency, and record CET1 ratio, leading to raised full-year guidance - **Adjusted diluted earnings per share grew 28% year-over-year**[4](index=4&type=chunk) - **Funded loan production surged 60% year over year**, driving **8% annualized loan growth**[4](index=4&type=chunk) - Achieved **positive operating leverage**, strengthening top-quartile efficiency ratio and profitability[4](index=4&type=chunk) - **Credit quality improved** across all categories[4](index=4&type=chunk) - **Common Equity Tier 1 capital ratio reached the highest level** in company's history[4](index=4&type=chunk) - Full-year 2025 earnings guidance was confidently raised[4](index=4&type=chunk) [Second Quarter 2025 Key Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Key%20Financial%20Highlights) Synovus reported **$206.3 million net income** and **$1.48 adjusted diluted EPS** for Q2 2025, with sequential growth in loans, net interest income, and improved credit quality Key Financial Highlights (Reported vs. Adjusted) | Metric | 2Q25 Reported | 1Q25 Reported | 2Q24 Reported | 2Q25 Adjusted | 1Q25 Adjusted | 2Q24 Adjusted | | :--------------------------------- | :-------------- | :-------------- | :-------------- | :-------------- | :-------------- | :-------------- | | Net income (loss) available to common shareholders (in thousands) | $206,320 | $183,691 | $(23,741) | $206,375 | $184,380 | $169,617 | | Diluted earnings per share | $1.48 | $1.30 | $(0.16) | $1.48 | $1.30 | $1.16 | | Total revenue (in thousands) | $593,696 | $570,850 | $306,147 | $592,083 | $573,243 | $563,597 | | Net interest margin | 3.37% | 3.35% | 3.20% | NA | NA | NA | | Efficiency ratio-TE | 53.03% | 53.81% | 98.15% | 52.31% | 53.26% | 53.05% | | Common Equity Tier 1 capital (CET1) ratio | 10.91% | 10.77% | 10.60% | NA | NA | NA | - **Pre-provision net revenue was $278.0 million**, up **6% from 1Q25**; Adjusted pre-provision net revenue of **$279.7 million increased 5%** on a linked quarter basis and rose **7% year over year**[5](index=5&type=chunk) - **Net interest income grew 1% from 1Q25 and 6% compared to 2Q24**[5](index=5&type=chunk) - **Net interest margin expanded by 2 basis points to 3.37%** due to a decline in deposit costs, fixed-rate asset repricing, hedge maturities, lower cash balances, and a stable Fed Funds environment[5](index=5&type=chunk) - **Period-end loans increased $888.0 million, or 2%**, from 1Q25, fueled by specialty lending, corporate and investment banking lending, and commercial banking[5](index=5&type=chunk) - Period-end core deposits (excluding brokered deposits) were **$45.2 billion**, a decline of **$788.4 million sequentially**; average deposit costs fell **4 basis points sequentially to 2.22%**[5](index=5&type=chunk) - **Non-performing loan and asset ratios improved to 0.59%** compared to 0.67% in 1Q25, while the **net charge-off ratio for 2Q25 was 0.17%**, down from 0.20% in the prior quarter[8](index=8&type=chunk) - **Provision for credit losses of $3.2 million declined 70% sequentially** and fell **88% compared to $26.4 million in 2Q24**[8](index=8&type=chunk) - The preliminary **Common Equity Tier 1 ratio ended 1Q25 at 10.91%** as core earnings accretion offset the impact of approximately **$21 million in common stock repurchases**[8](index=8&type=chunk) [Company Information](index=5&type=section&id=Company%20Information) Synovus Financial Corp. is a Georgia-based financial services company with approximately **$61 billion in assets**, offering diverse banking products across five Southeastern states [Company Profile](index=5&type=section&id=Company%20Profile) Synovus Financial Corp. is a Georgia-based financial services company with approximately **$61 billion in assets**, offering a comprehensive range of commercial and consumer banking products and specialized services across **244 branches** in five Southeastern states - Synovus Financial Corp. is based in Columbus, Georgia, with approximately **$61 billion in assets**[13](index=13&type=chunk) - Provides commercial and consumer banking and a full suite of specialized products and services, including wealth services, treasury management, mortgage services, premium finance, asset-based lending, structured lending, capital markets, and international banking[13](index=13&type=chunk) - As of June 30, 2025, Synovus has **244 branches** in Georgia, Alabama, Florida, South Carolina, and Tennessee[13](index=13&type=chunk) [Financial Results Overview](index=4&type=section&id=Financial%20Results%20Overview) Synovus reported a significant turnaround in Q2 2025 net income, driven by increased net interest income, substantial non-interest revenue growth, and sharply reduced credit loss provisions [Consolidated Income Statement - Second Quarter](index=4&type=section&id=Consolidated%20Income%20Statement%20-%20Second%20Quarter) Synovus reported a **net income of $217.1 million** for Q2 2025, a significant turnaround from a loss in 2Q24, driven by increased net interest income and a substantial rise in non-interest revenue, while provision for credit losses decreased sharply Income Statement Summary (2Q25 vs 1Q25 vs 2Q24) | Metric (in thousands) | 2Q25 | 1Q25 | 2Q24 | Linked Quarter % Change | Year/Year % Change | | :--------------------------------------- | :------- | :------- | :------- | :---------------------- | :------------------- | | Net interest income | $459,561 | $454,384 | $434,998 | 1% | 6% | | Non-interest revenue | $134,135 | $116,466 | $(128,851) | 15% | 204% | | Non-interest expense | $315,701 | $308,034 | $301,801 | 2% | 5% | | Provision for (reversal of) credit losses | $3,245 | $10,921 | $26,404 | (70)% | (88)% | | Income before taxes | $274,750 | $251,895 | $(22,058) | 9% | nm | | Net income (loss) | $217,119 | $194,872 | $(14,680) | 11% | nm | | Net income (loss) available to common shareholders | $206,320 | $183,691 | $(23,741) | 12% | nm | | Diluted earnings (loss) per share | $1.48 | $1.30 | $(0.16) | 14% | nm | [Net Interest Income and Margin](index=4&type=section&id=Net%20Interest%20Income%20and%20Margin) Synovus's net interest income grew **1% sequentially to $459.6 million** in Q2 2025, with net interest margin expanding to **3.37%** due to lower deposit costs and asset repricing - **Net interest income was $459.6 million in 2Q25**, increasing **1% sequentially and 6% year-over-year**[5](index=5&type=chunk)[11](index=11&type=chunk)[17](index=17&type=chunk) - **Net interest margin expanded by 2 basis points to 3.37% in 2Q25**, up from 3.35% in 1Q25 and 3.20% in 2Q24[5](index=5&type=chunk)[6](index=6&type=chunk)[17](index=17&type=chunk) - The expansion in net interest margin was a result of a **decline in deposit costs**, fixed-rate asset repricing, hedge maturities, lower cash balances, and a stable Fed Funds environment[5](index=5&type=chunk) [Non-Interest Revenue](index=4&type=section&id=Non-Interest%20Revenue) Non-interest revenue increased **15% sequentially to $134.1 million** in Q2 2025, driven by higher core banking fees, wealth management, and capital markets income - **Non-interest revenue was $134.1 million in 2Q25**, an increase of **$17.7 million (15%) sequentially**[8](index=8&type=chunk)[11](index=11&type=chunk)[17](index=17&type=chunk) - **Adjusted non-interest revenue of $130.9 million increased $13.6 million (12%) sequentially** and **$3.6 million (3%) from 2Q24**[8](index=8&type=chunk) - The sequential increase in adjusted non-interest revenue was primarily attributable to higher core banking fees, wealth management income, capital markets income, commercial sponsorship fees, and a bank-owned life insurance gain[8](index=8&type=chunk) - Investment securities gains (losses), net was **$0 in 2Q25** compared to **$(256.7) million in 2Q24**[11](index=11&type=chunk)[17](index=17&type=chunk) [Non-Interest Expense](index=4&type=section&id=Non-Interest%20Expense) Non-interest expense rose **2% sequentially to $315.7 million** in Q2 2025, primarily due to employment costs, while the efficiency ratio improved to **53.03%** - **Non-interest expense was $315.7 million in 2Q25**, increasing **$7.7 million (2%) sequentially** and **$13.9 million (5%) year-over-year**[11](index=11&type=chunk)[17](index=17&type=chunk) - **Adjusted non-interest expense was $312.4 million**, increasing **1% from 1Q25 and 3% from a year ago**, primarily due to higher employment expense[8](index=8&type=chunk) - The **efficiency ratio-TE improved to 53.03% in 2Q25** from 53.81% in 1Q25 and 98.15% in 2Q24[6](index=6&type=chunk)[11](index=11&type=chunk) - The **adjusted tangible efficiency ratio improved to 52.31% in 2Q25** from 53.26% in 1Q25[6](index=6&type=chunk)[11](index=11&type=chunk) [Provision for Credit Losses](index=4&type=section&id=Provision%20for%20Credit%20Losses) Provision for credit losses significantly decreased by **70% sequentially to $3.2 million** in Q2 2025, reflecting improved credit quality - **Provision for credit losses was $3.2 million in 2Q25**, declining **70% sequentially from $10.9 million** and **88% year-over-year from $26.4 million**[8](index=8&type=chunk)[11](index=11&type=chunk)[17](index=17&type=chunk) [Net Income and Earnings Per Share](index=4&type=section&id=Net%20Income%20and%20Earnings%20Per%20Share) Net income available to common shareholders increased **12% sequentially to $206.3 million** in Q2 2025, with diluted EPS rising to **$1.48** - **Net income available to common shareholders was $206.3 million in 2Q25**, up **12% sequentially**[5](index=5&type=chunk)[11](index=11&type=chunk)[17](index=17&type=chunk) - **Diluted earnings per share was $1.48 in 2Q25**, up **14% sequentially**[5](index=5&type=chunk)[11](index=11&type=chunk)[17](index=17&type=chunk) - **Adjusted diluted earnings per share was $1.48 in 2Q25**, up **14% sequentially and 28% year-over-year**[5](index=5&type=chunk)[11](index=11&type=chunk)[17](index=17&type=chunk) [Consolidated Income Statement - Year-to-Date](index=6&type=section&id=Consolidated%20Income%20Statement%20-%20Year-to-Date) For the six months ended June 30, 2025, Synovus reported a **net income available to common shareholders of $390.0 million**, a **328% increase** from the prior year, with **diluted EPS of $2.77** Income Statement Data (Six Months Ended June 30, 2025 vs 2024) | Metric (in thousands) | 2025 | 2024 | % Change | | :--------------------------------------- | :------- | :------- | :------- | | Net interest income | $913,945 | $853,844 | 7% | | Provision for (reversal of) credit losses | $14,166 | $80,384 | (82)% | | Total non-interest revenue | $250,601 | $(9,963) | nm | | Total non-interest expense | $623,735 | $624,542 | —% | | Income before income taxes | $526,645 | $138,955 | 279% | | Net income | $411,991 | $109,390 | 277% | | Net income available to common shareholders | $390,011 | $91,081 | 328% | | Diluted earnings per share | $2.77 | $0.62 | 347% | | Cash dividends declared per common share | $0.78 | $0.76 | 3% | | Return on average assets | 1.39% | 0.37% | 102 bps | | Return on average common equity | 16.11% | 4.07% | nm | [Balance Sheet Overview](index=3&type=section&id=Balance%20Sheet%20Overview) Synovus's balance sheet at June 30, 2025, shows total assets of **$61.06 billion**, with sequential growth in loans and investment securities, while deposits experienced a slight decline [Loans Outstanding](index=3&type=section&id=Loans%20Outstanding) Total loans increased by **$888.0 million, or 2%**, sequentially to **$43.5 billion** at June 30, 2025, primarily driven by growth in commercial & industrial loans and other investment properties Loans Outstanding by Type (2Q25 vs 1Q25 vs 2Q24) | Loan Type (in millions) | June 30, 2025 | March 31, 2025 | Linked Quarter % Change | June 30, 2024 | Year/Year % Change | | :-------------------------------- | :-------------- | :--------------- | :---------------------- | :-------------- | :------------------- | | Commercial & industrial | $23,098.3 | $22,313.3 | 4% | $22,536.6 | 2% | | Commercial real estate | $12,139.7 | $12,071.6 | 1% | $12,215.5 | (1)% | | Consumer | $8,298.7 | $8,263.8 | —% | $8,341.3 | (1)% | | **Total loans** | **$43,536.7** | **$42,648.7** | **2%** | **$43,093.4** | **1%** | - **Commercial & industrial loans increased by 4% sequentially and 2% year-over-year**[9](index=9&type=chunk)[21](index=21&type=chunk) - **Other Investment Property loans increased 2% sequentially and 13% year-over-year**[21](index=21&type=chunk) - **1-4 Family Construction loans increased 11% sequentially and 22% year-over-year**[21](index=21&type=chunk) [Deposits](index=3&type=section&id=Deposits) Total deposits decreased by **$918.1 million, or 2%**, sequentially to **$49.9 billion** at June 30, 2025, primarily due to declines in public funds, time deposits, and interest-bearing DDA, partially offset by an increase in non-interest-bearing DDA Deposits by Type (2Q25 vs 1Q25 vs 2Q24) | Deposit Type (in millions) | 2Q25 | 1Q25 | Linked Quarter Change | Linked Quarter % Change | 2Q24 | Year/Year Change | Year/Year % Change | | :------------------------- | :------- | :------- | :-------------------- | :---------------------- | :------- | :--------------- | :----------------- | | Non-interest-bearing DDA | $11,219.8 | $11,095.8 | $124.0 | 1% | $11,177.7 | $42.1 | —% | | Interest-bearing DDA | $7,124.8 | $7,272.0 | $(147.2) | (2)% | $6,621.2 | $503.6 | 8% | | Money market | $11,441.1 | $11,424.7 | $16.4 | —% | $10,747.9 | $693.1 | 6% | | Savings | $971.9 | $1,000.4 | $(28.5) | (3)% | $1,009.8 | $(38.0) | (4)% | | Public funds | $7,719.9 | $8,125.0 | $(405.0) | (5)% | $7,111.9 | $608.0 | 9% | | Time deposits | $6,730.4 | $7,078.5 | $(348.1) | (5)% | $8,125.2 | $(1,394.8) | (17)% | | Brokered deposits | $4,717.1 | $4,846.7 | $(129.6) | (3)% | $5,402.0 | $(685.0) | (13)% | | **Total deposits** | **$49,925.0** | **$50,843.1** | **$(918.1)** | **(2)%** | **$50,195.8** | **$(270.8)** | **(1)%** | - **Average deposit costs fell 4 basis points sequentially to 2.22%**[5](index=5&type=chunk) [Consolidated Balance Sheet](index=8&type=section&id=Consolidated%20Balance%20Sheet) Total assets for Synovus increased to **$61.06 billion** at June 30, 2025, up from **$60.23 billion** at December 31, 2024, primarily driven by an increase in loans and investment securities Consolidated Balance Sheet (June 30, 2025 vs Dec 31, 2024 vs June 30, 2024) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :--------------------------------------- | :-------------- | :---------------- | :-------------- | | Total assets | $61,056,785 | $60,233,644 | $59,606,343 | | Total deposits | $49,925,007 | $51,095,359 | $50,195,778 | | Long-term debt | $3,909,478 | $1,733,109 | $2,283,767 | | Total liabilities | $55,418,143 | $54,967,393 | $54,529,671 | | Total Synovus Financial Corp. shareholders' equity | $5,617,686 | $5,244,557 | $5,053,606 | - **Loans, net increased to $43.07 billion** at June 30, 2025, from **$42.12 billion** at December 31, 2024[18](index=18&type=chunk) - **Investment securities available for sale increased to $7.80 billion** at June 30, 2025, from **$7.55 billion** at December 31, 2024[18](index=18&type=chunk) [Average Balances, Interest, and Yields/Rates](index=9&type=section&id=Average%20Balances,%20Interest,%20and%20Yields/Rates) For Q2 2025, average interest-earning assets were **$54.96 billion** with a yield of **5.64%**, while average interest-bearing liabilities were **$40.99 billion** with a cost of **3.05%**, resulting in a net interest margin of **3.37%** Average Balances, Interest, and Yields/Rates (2Q25 vs 1Q25 vs 2Q24) | Metric | 2Q25 Average Balance (in thousands) | 2Q25 Yield/Rate | 1Q25 Average Balance (in thousands) | 1Q25 Yield/Rate | 2Q24 Average Balance (in thousands) | 2Q24 Yield/Rate | | :--------------------------------------- | :-------------------------------- | :-------------- | :-------------------------------- | :-------------- | :-------------------------------- | :-------------- | | Total interest earning assets | $54,963,110 | 5.64% | $55,131,990 | 5.65% | $54,849,986 | 5.89% | | Total interest-bearing liabilities | $40,990,827 | 3.05% | $41,040,686 | 3.09% | $40,199,073 | 3.66% | | Net interest income and net interest margin, taxable equivalent | NA | 3.37% | NA | 3.35% | NA | 3.20% | - **Commercial loans yield decreased to 6.39% in 2Q25** from 6.43% in 1Q25 and 6.82% in 2Q24[19](index=19&type=chunk) - **Time deposits rate decreased to 3.45% in 2Q25** from 3.71% in 1Q25 and 4.48% in 2Q24[19](index=19&type=chunk) [Asset Quality](index=11&type=section&id=Asset%20Quality) Synovus demonstrated improved asset quality in Q2 2025, with non-performing loans and assets decreasing, a lower net charge-off ratio, and enhanced reserve coverage [Non-Performing Loans and Assets](index=11&type=section&id=Non-Performing%20Loans%20and%20Assets) Non-performing loans (NPLs) decreased by **10% sequentially to $257.4 million** at June 30, 2025, while non-performing assets (NPAs) also saw a similar decline, with the NPL ratio remaining stable at **0.59%** year-over-year Non-Performing Loans Composition (2Q25 vs 1Q25 vs 2Q24) | Loan Type (in thousands) | June 30, 2025 | March 31, 2025 | Linked Quarter % Change | June 30, 2024 | Year/Year % Change | | :-------------------------------- | :-------------- | :--------------- | :---------------------- | :-------------- | :------------------- | | Commercial & Industrial | $129,309 | $143,796 | (10)% | $171,084 | (24)% | | Commercial Real Estate | $61,263 | $70,064 | (13)% | $15,537 | 294% | | Consumer | $66,843 | $72,769 | (8)% | $69,485 | (4)% | | **Total Non-performing Loans** | **$257,415** | **$286,629** | **(10)%** | **$256,106** | **1%** | - **Non-performing assets (NPAs) were $258.6 million in 2Q25**, down from $287.2 million in 1Q25[24](index=24&type=chunk) - The **NPLs / Loans ratio was 0.59% in 2Q25**, down from 0.67% in 1Q25, and stable compared to 0.59% in 2Q24[24](index=24&type=chunk) - The **NPAs / Loans, ORE and specific other assets ratio was 0.59% in 2Q25**, down from 0.67% in 1Q25, and stable compared to 0.60% in 2Q24[24](index=24&type=chunk) [Credit Loss Allowance and Net Charge-Offs](index=12&type=section&id=Credit%20Loss%20Allowance%20and%20Net%20Charge-Offs) The allowance for credit losses (ACL) decreased to **$513.8 million**, with the ACL to loans ratio at **1.18%**, while net charge-offs (NCOs) declined significantly to **0.17%** of average loans for the quarter, and reserve coverage of non-performing loans improved to **200%** - **Allowance for Credit Losses (ACL) was $513.8 million in 2Q25**, down from $528.9 million in 1Q25[24](index=24&type=chunk) - **Allowance for Loan Losses (ALL) was $464.8 million in 2Q25**, down from $478.2 million in 1Q25[24](index=24&type=chunk) - **Net Charge-Offs / Average Loans - Quarter was 0.17% in 2Q25**, down from 0.20% in 1Q25 and 0.32% in 2Q24[24](index=24&type=chunk) - The **ACL / Loans ratio was 1.18% in 2Q25**, down from 1.24% in 1Q25[24](index=24&type=chunk) - **Reserve coverage of non-performing loans (ACL/NPLs) improved to 199.60% in 2Q25** from 184.51% in 1Q25[8](index=8&type=chunk)[24](index=24&type=chunk) [Capital Adequacy](index=12&type=section&id=Capital%20Adequacy) Synovus achieved a record-high preliminary **Common Equity Tier 1 capital ratio of 10.91%** at June 30, 2025, reflecting strong core earnings accretion and improved tangible common equity [Regulatory Capital Ratios and Equity](index=12&type=section&id=Regulatory%20Capital%20Ratios%20and%20Equity) Synovus's **Common Equity Tier 1 (CET1) capital ratio reached a preliminary 10.91%** at June 30, 2025, the highest in the company's history, reflecting strong core earnings accretion, with the tangible common equity ratio also improving to **7.55%** Selected Capital Information (June 30, 2025 vs Dec 31, 2024 vs June 30, 2024) | Metric | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :--------------------------------------- | :------------ | :------------------ | :------------ | | Common Equity Tier 1 Capital Ratio | 10.91% | 10.84% | 10.60% | | Tier 1 Capital Ratio | 12.01% | 11.96% | 11.72% | | Total Risk-Based Capital Ratio | 13.74% | 13.81% | 13.56% | | Tier 1 Leverage Ratio | 9.86% | 9.55% | 9.44% | | Total Synovus Financial Corp. shareholders' equity as a Percentage of Total Assets | 9.20% | 8.71% | 8.48% | | Tangible Common Equity Ratio | 7.55% | 7.02% | 6.76% | | Book Value Per Common Share | $36.61 | $33.35 | $31.33 | | Tangible Book Value Per Common Share | $32.94 | $29.70 | $27.72 | - The preliminary **Common Equity Tier 1 ratio ended 1Q25 at 10.91%**, the highest level in the company's history, as core earnings accretion offset the impact of common stock repurchases[4](index=4&type=chunk)[8](index=8&type=chunk)[25](index=25&type=chunk) [Non-GAAP Financial Measures](index=13&type=section&id=Non-GAAP%20Financial%20Measures) Synovus utilizes non-GAAP financial measures to provide additional insights into its operating results and financial strength, with comprehensive reconciliations to GAAP [Non-GAAP Measures and Reconciliations](index=13&type=section&id=Non-GAAP%20Measures%20and%20Reconciliations) Synovus provides non-GAAP financial measures, including adjusted non-interest revenue, adjusted non-interest expense, and adjusted tangible efficiency ratio, to offer additional insights into its operating results and financial strength, with detailed reconciliations to GAAP measures - Non-GAAP financial measures provide meaningful additional information to evaluate operating results, financial strength, business performance, and capital position, by excluding items not indicative of ongoing operations[27](index=27&type=chunk) - Reconciliations are provided for adjusted non-interest revenue, adjusted non-interest expense, adjusted revenue (TE), adjusted tangible efficiency ratio, adjusted pre-provision net revenue, adjusted return on average assets, adjusted net income available to common shareholders, adjusted diluted earnings per share, adjusted return on average common equity, return on average tangible common equity, adjusted return on average tangible common equity, and tangible common equity ratio[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) [Additional Information](index=5&type=section&id=Additional%20Information) This section provides details on the upcoming earnings conference call and important disclosures regarding forward-looking statements and associated risks [Earnings Conference Call Details](index=5&type=section&id=Earnings%20Conference%20Call%20Details) Synovus will host an earnings conference call with a slide presentation on July 17, 2025, at 8:30 a.m. ET, with access details for dial-in or webcast and replay information provided - Earnings highlights conference call with accompanying slide presentation scheduled for **July 17, 2025, at 8:30 a.m. ET**[12](index=12&type=chunk) - Access via listen-only dial-in phone number: **833-470-1428 (code: 937395)** or simultaneous internet broadcast at **investor.synovus.com/event**[12](index=12&type=chunk) - Replay will be archived for at least 12 months and available approximately one hour after the call[12](index=12&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements regarding future performance and strategy, which are subject to known and unknown risks and uncertainties detailed in SEC filings, with no obligation to update - Statements constitute 'forward-looking statements' regarding future operating and financial performance, growth strategy, expense and revenue initiatives, capital management, balance sheet management, future profitability, and credit quality[14](index=14&type=chunk) - Forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause actual results to be materially different[14](index=14&type=chunk) - Risks and other factors are set forth in Synovus's filings with the SEC, including its Annual Report on Form 10-K and quarterly reports on Form 10-Q and current reports on Form 8-K[15](index=15&type=chunk) - The company does not assume any obligation to update any forward-looking statements, except as may be required by law[15](index=15&type=chunk)

Synovus Financial Corp. SNV will release earnings results for the second quarter, after the closing bell on Wednesday, July 16. Analysts expect the Columbus, Georgia-based company to report quarterly earnings at $1.25 per share, up from $1.16 per share in the year-ago period. Synovus Financial projects to report quarterly revenue of $585.99 million, compared to $306.15 million a year earlier, according to data from Benzinga Pro. On April 16, Synovus posted better-than-expected earnings for the first quarter ...