Company Overview - Synovus Financial (SNV) currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3] - The company has a Zacks Rank of 2 (Buy), which is supported by its strong performance metrics [4] Price Performance - Over the past week, SNV shares have increased by 7.14%, outperforming the Zacks Banks - Southeast industry, which rose by 5.77% [6] - In a longer time frame, SNV shares have risen by 11.1% over the past three months and 45.12% over the last year, while the S&P 500 has only moved 3.62% and 26.55%, respectively [7] Trading Volume - The average 20-day trading volume for SNV is 1,011,304 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Estimates - In the past two months, 7 earnings estimates for SNV have been revised upwards, while only 1 has been revised downwards, leading to an increase in the consensus estimate from $4.67 to $4.86 [10] - For the next fiscal year, 5 estimates have moved upwards with no downward revisions during the same period [10] Conclusion - Considering the strong price performance, positive earnings revisions, and high Momentum Style Score, SNV is positioned as a solid momentum pick for investors [12]

Financial Data and Key Metrics Changes - Synovus reported fourth quarter EPS of $1.25, up 6% from the previous quarter, and adjusted fourth quarter EPS rose 18% year-over-year, excluding the FDIC special assessment [6][10] - For 2024, EPS was $3.03, while adjusted EPS was $4.43, indicating a year of healthy focused growth [6][10] - Adjusted revenue increased 3% on a sequential and year-over-year basis, with net interest income growth and net interest margin expansion [10][22] Business Line Data and Key Metrics Changes - The company grew balances by 4% in higher-growth commercial lending segments, including middle market, corporate, and investment banking [7] - Core deposits grew by 3%, with a new legal industry deposit vertical launched [8][19] - Adjusted noninterest revenue increased 2% from the prior quarter, driven by stronger core banking, capital markets, and wealth management income [12][25] Market Data and Key Metrics Changes - Core deposit balances grew by $1.1 billion or 3% sequentially, with public funds growth contributing significantly [19] - The average cost of deposits declined 26 basis points to 2.46%, reflecting efforts to manage deposit costs amid changing rates [21] - The wholesale funding ratio improved to 11% compared to 13.5% in the previous year [21] Company Strategy and Development Direction - Synovus aims to continue executing strategies outlined in late 2023, focusing on healthy growth and effective collaboration [6][7] - The company plans to invest in expanding middle market commercial and wealth relationship manager teams, as well as other growth-related investments [30][41] - The capital deployment priority remains on client loan growth, with a $400 million common share repurchase program authorized [43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to a more normalized growth environment in 2025, supported by improved client sentiment and production momentum [51][56] - The company expects loan growth of 3% to 6% in 2025, driven by middle market, corporate, and investment banking segments [36][37] - Management anticipates net charge-offs to remain in the 25 to 35 basis point range in the first half of 2025 [41] Other Important Information - The preliminary common equity Tier 1 ratio increased by 62 basis points to 10.84% in 2024, supported by solid earnings accretion [9][33] - The company executed about $50 million in share repurchases during the fourth quarter [14][33] - Management acknowledged the retirement of Chief Credit Officer Bob Derrick, who contributed significantly to the company [14] Q&A Session Summary Question: Can you talk about the loan growth expectations? - Management expressed optimism about returning to a more normalized growth environment in 2025, citing improved client sentiment and production momentum [51][56] Question: How do you expect the margin to trend after the first quarter? - Management expects the margin to be in the mid-320s in the first half of the year, with potential expansion in the second half [60] Question: Is there more leverage for capital return in a deregulatory environment? - Management indicated flexibility in their capital plan, allowing for stable capital ratios even with varying loan growth scenarios [66][68] Question: What are the expectations for revenue growth if there are no rate cuts in the first half? - Management noted that the lead-lag impact of rate changes would be less severe than previously anticipated, potentially benefiting revenue guidance [82] Question: Can you provide insight into capital markets trajectory? - Management highlighted a 13% growth in capital markets and expressed confidence in continued double-digit growth due to increased diversification [91][92] Question: What is the outlook for credit quality with rising interest rates? - Management indicated that while higher rates could pose some concerns, they do not expect a material negative effect on credit outlook [140][145]

Core Insights - Synovus Financial reported revenue of $580.58 million for Q4 2024, marking an 18.8% year-over-year increase and a 2.26% surprise over the Zacks Consensus Estimate of $567.77 million [1] - The earnings per share (EPS) for the same quarter was $1.25, compared to $0.80 a year ago, resulting in a 7.76% surprise over the consensus EPS estimate of $1.16 [1] Financial Metrics - Net interest margin was reported at 3.3%, exceeding the five-analyst average estimate of 3.2% [4] - The efficiency ratio was 53.2%, better than the estimated 54.8% by five analysts [4] - Net charge-offs as a percentage of average loans were 0.3%, matching the estimate from four analysts [4] - Average balance of total interest-earning assets was $55.42 billion, surpassing the four-analyst average estimate of $54.67 billion [4] - Non-performing loans (NPLs) totaled $309.16 million, slightly above the estimated $300.97 million [4] - Non-performing assets (NPAs) were reported at $309.55 million, compared to the estimated $302.06 million [4] - Total non-interest revenue reached $125.59 million, exceeding the average estimate of $121.84 million [4] - Net interest income on a taxable equivalent basis was $456.42 million, higher than the estimated $440.22 million [4] - Net interest income was reported at $454.99 million, above the four-analyst average estimate of $439.38 million [4] - Card fees amounted to $19.58 million, slightly above the average estimate of $19.55 million [4] - Capital markets income was $12.07 million, significantly higher than the estimated $8.77 million [4] - Brokerage revenue reached $20.91 million, compared to the three-analyst average estimate of $20.86 million [4] Stock Performance - Synovus shares returned +0.6% over the past month, while the Zacks S&P 500 composite declined by -3.3% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - Synovus Financial (SNV) reported quarterly earnings of $1.25 per share, exceeding the Zacks Consensus Estimate of $1.16 per share, and showing a significant increase from $0.80 per share a year ago, representing an earnings surprise of 7.76% [1] - The company posted revenues of $580.58 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.26% and up from $488.68 million year-over-year [2] - Synovus shares have increased approximately 4.8% since the beginning of the year, contrasting with a decline of -0.7% in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.08 on revenues of $563.17 million, while for the current fiscal year, the estimate is $4.70 on revenues of $2.32 billion [7] - The estimate revisions trend for Synovus is favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Banks - Southeast industry, to which Synovus belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [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]

Financial Performance - Interest income for 2024 increased to $3,193,589 thousand, a 5% rise from $3,050,358 thousand in 2023[2] - Net interest income after provision for credit losses decreased by 1% to $1,612,892 thousand from $1,627,576 thousand[2] - Total non-interest revenue dropped significantly by 41% to $239,604 thousand compared to $404,010 thousand in 2023[2] - Net income attributable to Synovus Financial Corp. decreased by 11% to $482,460 thousand from $543,705 thousand[2] - Net income available to common shareholders fell by 13% to $439,557 thousand from $507,755 thousand[2] - Net income per common share, basic, decreased by 12% to $3.05 from $3.48[2] - Return on average assets declined to 0.81%, down 9 basis points from 0.90%[2] - Return on average common equity decreased to 9.50%, down 267 basis points from 12.17%[2] - Non-interest expense reduced by 7% to $1,247,543 thousand from $1,335,424 thousand[2] Asset and Liability Management - Total assets increased to $60,233,644 thousand as of December 31, 2024, up from $59,589,628 thousand in the previous quarter[4] - Net loans decreased slightly to $42,122,183 thousand from $42,635,689 thousand quarter-over-quarter[4] - Total deposits rose to $51,095,359 thousand, compared to $50,193,740 thousand in the prior quarter, reflecting a growth of 1.8%[4] - Total shareholders' equity decreased to $5,266,251 thousand from $5,378,171 thousand quarter-over-quarter[4] - Average interest-earning assets decreased to $55,086,834 thousand in 2024 from $56,696,007 thousand in 2023[5] - Total interest-bearing liabilities were $41,044,576 thousand, with a total interest expense of $344,137 thousand, resulting in an average rate of 3.34%[1] Interest Income and Yield - Net interest income for 2024 was $1,749,577 thousand, compared to $1,816,655 thousand in 2023, indicating a decrease of 3.7%[5] - The yield on commercial loans increased to 6.74% in 2024 from 6.43% in 2023, while consumer loans rose to 5.23% from 4.98%[5] - The net interest margin for 2024 was 3.19%, slightly down from 3.21% in 2023[5] - Total interest earning assets for Q4 2024 were $55,422,486 thousand, with net interest income of $454,993 thousand, resulting in a net interest margin of 3.28%[6] - Commercial loans averaged $34,278,042 thousand in Q4 2024, generating interest income of $569,759 thousand at a yield of 6.61%[1] - Total investment securities were $10,623,943 thousand in Q4 2024, with an interest income of $91,038 thousand and a yield of 3.43%[1] - Interest-bearing demand deposits increased to $11,298,352 thousand in Q4 2024, with an interest expense of $67,470 thousand at a rate of 2.38%[1] Loan Performance and Credit Quality - The allowance for loan losses was $486,845 thousand, slightly up from $484,985 thousand in the previous quarter[4] - Non-performing loans (NPL) totaled $309,164 thousand, a 7% increase year-over-year from $288,177 thousand[12] - The allowance for loan losses (ALL) increased to $486,845 thousand, up 2% from $479,385 thousand year-over-year[12] - Total non-performing assets (NPAs) reached $309,549 thousand, reflecting a 7% increase from $288,177 thousand year-over-year[12] - The net charge-offs for the quarter were $28,101 thousand, with a year-to-date total of $133,994 thousand[12] - The total commercial real estate non-performing loans decreased by 10% quarter-over-quarter to $77,804 thousand[12] - The total consumer non-performing loans increased by 5% quarter-over-quarter to $74,106 thousand[12] - Past due loans over 90 days and still accruing increased significantly to $48,592 thousand, compared to $5,053 thousand in the previous year[12] Capital Ratios and Shareholder Value - The common equity tier 1 capital ratio improved to 10.84%, compared to 10.22% a year ago[13] - The Tier 1 capital ratio rose to 11.96%, up from 11.28% year-over-year[13] - The book value per common share increased to $33.35, compared to $31.24 a year ago[13] - Cash dividends declared per common share remained stable at $1.52[2] - The net unrealized losses on investment securities available for sale were $(391.6) million in Q4 2024, an improvement from $(424.6) million in Q3 2024[8]

Core Viewpoint - Synovus Financial (SNV) is expected to report significant growth in quarterly earnings and revenues, with analysts projecting earnings of $1.16 per share, a 45% increase year-over-year, and revenues of $567.77 million, reflecting a 16.2% increase compared to the same period last year [1]. Earnings Projections - The consensus EPS estimate for the quarter has been revised upward by 0.2% over the past 30 days, indicating a collective reassessment by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are strongly correlated with short-term stock price performance [3]. Key Financial Metrics - Analysts project a 'net interest margin, taxable equivalent' of 3.2%, up from 3.1% a year ago [5]. - The 'Efficiency ratio - TE' is expected to be 54.8%, a significant improvement from 72% reported in the same quarter last year [5]. - The 'Average Balance - Total interest earning assets' is estimated to be $54.67 billion, down from $55.99 billion a year ago [5]. Non-Performing Loans and Assets - 'Non-performing Loans (NPLs)' are projected to reach $300.97 million, compared to $288.18 million reported in the same quarter last year [6]. - 'Non-performing Assets (NPAs)' are expected to be $302.06 million, up from $288.18 million in the previous year [6]. Revenue Estimates - Total non-interest revenue is estimated at $121.84 million, a significant increase from $51.47 million reported in the same quarter last year [7]. - 'Net interest income taxable equivalent' is projected at $440.22 million, slightly up from $438.43 million a year ago [7]. - The consensus estimate for 'Net Interest Income' stands at $439.38 million, compared to $437.21 million in the same quarter last year [8]. Additional Revenue Streams - 'Card fees' are expected to reach $19.55 million, down from $20.87 million reported in the same quarter last year [8]. - 'Capital markets income' is projected at $8.77 million, up from $5.10 million a year ago [9]. - 'Brokerage revenue' is expected to be $20.86 million, compared to $19.73 million last year, while 'Mortgage banking income' is projected at $3.99 million, up from $3.02 million [9]. Stock Performance - Over the past month, shares of Synovus have returned -4.1%, compared to the Zacks S&P 500 composite's -2.2% [10].

Financial Performance - Synovus Financial Corp. is set to release its fourth-quarter financial results on January 15, 2025, with expected earnings of $1.22 per share, an increase from 84 cents per share in the same period last year [1] - The company projects quarterly revenue of $19.43 billion, up from $17.44 billion a year earlier [1] Stock Upgrade and Price Target - Barclays upgraded Synovus Financial's stock from Equal-Weight to Overweight and raised its price target from $70 to $95 [2] Dividend Information - Synovus Financial currently offers an annual dividend yield of 2.90%, translating to a quarterly dividend of 38 cents per share, or $1.52 annually [2] - To earn $500 monthly from dividends, an investment of approximately $207,020 or around 3,947 shares is required, while a more modest $100 monthly would need about $41,383 or 789 shares [2] Dividend Yield Calculation - The dividend yield is calculated by dividing the annual dividend payment by the stock's current price, which can fluctuate based on changes in stock price and dividend payments [3][4] - For example, if a stock pays an annual dividend of $2 and is priced at $50, the yield is 4%, but if the price rises to $60, the yield drops to 3.33% [3] Recent Stock Performance - Shares of Synovus Financial gained 0.1% to close at $52.45 on Wednesday [4]

Synovus Financial Corp. (SNV) shares have gained 31.5% in the past six months, outperforming the industry’s growth of 19.7%. The stock has also outperformed its close peers like Hancock Whitney Corporation (HWC) and F.N.B. Corporation (FNB) in the same time frame.Six-Month Price PerformanceImage Source: Zacks Investment ResearchAfter such a strong rally, investors are left wondering whether they should buy SNV stock now or wait for a better entry point. Let us find out.What’s Aiding SNV’s Performance?Positi ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Synovus Financial (SNV) reports results for the quarter ended December 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on January 15, 2025, might help the stock move higher if these key numbers are better ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Synovus Financial (SNV) , which belongs to the Zacks Banks - Southeast industry, could be a great candidate to consider.This holding company for Synovus Bank has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 16.84%.For the las ...