Core Viewpoint - The comparison between Popular (BPOP) and Synovus Financial (SNV) indicates that BPOP presents a better value opportunity for investors at this time [1][3]. Valuation Metrics - BPOP has a forward P/E ratio of 11.01, while SNV has a forward P/E of 11.02 [5]. - BPOP's PEG ratio is 0.62, indicating a more favorable expected earnings growth rate compared to SNV's PEG ratio of 1.01 [5]. - BPOP's P/B ratio is 1.38, compared to SNV's P/B ratio of 1.62, suggesting BPOP is more undervalued relative to its book value [6]. Analyst Outlook - BPOP holds a Zacks Rank of 2 (Buy), indicating a more positive earnings estimate revision activity compared to SNV's Zacks Rank of 3 (Hold) [3][7]. - The stronger estimate revision activity for BPOP suggests an improving analyst outlook, making it a more attractive option for value investors [3][7]. Value Grades - BPOP has a Value grade of A, while SNV has a Value grade of C, further supporting the conclusion that BPOP is the superior investment choice at present [6].

There are three stages to a golden cross. First, there must be a downtrend in a stock's price that eventually bottoms out. Then, the stock's shorter moving average crosses over its longer moving average, triggering a positive trend reversal. The third stage is when a stock continues the upward momentum to higher prices. Synovus Financial Corp. (SNV) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, SNV's 50-day simple moving average broke out ...

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].