Synovus' Transformation and Growth - Synovus has undergone a multi-year transformation, enhancing its ability to succeed [6] - The company is capitalizing on growth tailwinds with stronger loan growth, balanced core deposit growth, and continued healthy non-interest revenue growth [11, 21] - Synovus is focused on long-term shareholder value creation [14] Financial Performance and Guidance - The Common Equity Tier 1 Ratio decreased by 440 bps from 3Q22 [13] - Allowance For Credit Losses increased by 112 bps from 3Q22 [13] - Wholesale Funding/Assets increased by 11 bps from 3Q22 [13] - The company projects 3%-6% loan growth and 3%-6% core deposit growth for 2025 [35] - Synovus anticipates 3%-7% adjusted revenue growth and 3%-7% adjusted non-interest expense growth in 2025 [35] Strategic Initiatives - Synovus is targeting a 20-30% expansion of relationship managers over the next 3 years [26] - Strategic growth segments include Middle Market, Specialty Lending, and CIB [22]

Key Takeaways Synovus is expanding commercial and middle-market banking across South Carolina with seasoned hires. SNV plans a 20-30% hiring boost from 2025-2027 to grow loans, core deposits, and fee income. SNV is enhancing client relationships with talent focused on personalized, community-based banking.Synovus Financial (SNV) is reinforcing its presence in South Carolina by expanding its commercial and middle-market banking operations. The company is prioritizing relationship-driven banking, bringing i ...

Synovus Financial (SNV) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Individ ...

Investors might want to bet on Synovus Financial (SNV) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.The upward trend in estimate revisions for this holding company for Synovus Bank reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong ...

Synovus Financial (SNV) closed the last trading session at $44.10, gaining 10% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $55.56 indicates a 26% upside potential.The mean estimate comprises 16 short-term price targets with a standard deviation of $5.85. While the lowest estimate of $46 indicates a 4.3% increase from the current price level, the most optimistic analyst expects ...

Financial Performance - Net income available to common shareholders for Q1 2025 was $183.7 million, or $1.30 per diluted share, a 60% increase from $114.8 million, or $0.78 per diluted share, in Q1 2024[157]. - Total revenue for Q1 2025 was $570.9 million, a 6% increase from $537.7 million in Q1 2024[156]. - The adjusted net income available to common shareholders for the three months ended March 31, 2025, was $184.38 million, compared to $115.97 million for the same period in 2024[262]. - Net income for the three months ended March 31, 2025, was $194,872,000, compared to $124,070,000 for the same period in 2024, representing a year-over-year increase of 56.7%[263]. - Adjusted net income available to common shareholders for Q1 2025 was $184,380,000, up from $115,973,000 in Q1 2024, reflecting a growth of 58.9%[263]. Revenue and Income Sources - Non-interest revenue for Q1 2025 was $116.5 million, a decrease of $2.4 million, or 2%, compared to Q1 2024, primarily due to lower commercial sponsorship income and brokerage revenue[159]. - The company’s total non-interest revenue for the three months ended March 31, 2025, was $116.47 million, down from $118.89 million for the same period in 2024[261]. Interest Income and Margin - Net interest income for Q1 2025 was $454.4 million, an 8% increase from $418.8 million in Q1 2024, driven by lower funding costs[156]. - The net interest margin increased by 31 basis points to 3.35% compared to the same period in 2024, supported by effective deposit repricing and investment securities repositioning[158]. - Net interest income for Q1 2025 was $454.38 million, compared to $418.85 million for the same period in 2024[262]. Expenses and Efficiency - Non-interest expense decreased by 5% to $308.0 million compared to $322.7 million in the same period last year[156]. - The efficiency ratio improved to 53.81% from 59.87% in the prior year, indicating better cost management[156]. - Total non-interest expense for the first quarter of 2025 was $308.0 million, a decrease of $14.7 million, or 5%, compared to the same period in 2024, primarily due to a reduction in FDIC special assessment accrual[204]. Asset Quality and Credit Losses - Provision for credit losses decreased significantly to $10.9 million from $54.0 million in the prior year, reflecting improved credit performance[156]. - Non-performing assets ratio improved to 0.67% from 0.73% year-over-year, indicating better asset quality[156]. - The net charge-off ratio for Q1 2025 was 20 bps annualized, with net charge-offs totaling $21.4 million[162]. - As of March 31, 2025, non-performing loans (NPLs) were $286.6 million, representing 0.67% of total loans, a decrease from 0.81% a year earlier[217][215]. Capital and Ratios - The CET1 ratio as of March 31, 2025, was 10.77%, a decline of 7 bps from December 31, 2024, due to share repurchases offsetting organic earnings[164]. - The allowance for credit losses (ACL) was $528.9 million at March 31, 2025, down from $539.3 million at December 31, 2024, with an ACL to loans coverage ratio of 1.24%[221][225]. - Tangible common equity ratio improved to 7.26% in Q1 2025 from 6.67% in Q1 2024, demonstrating stronger capital efficiency[264]. Loans and Deposits - Total loans as of March 31, 2025, were $42.65 billion, an increase of $39.7 million from December 31, 2024, with C&I loans representing 52.3% of total loans[161]. - Total deposits as of March 31, 2025, were $50.8 billion, a slight decrease from $51.1 billion at the end of 2024[156]. - Total period-end deposits decreased by $252.3 million compared to December 31, 2024, primarily due to a decrease in time deposits[163]. Projections and Future Outlook - The company expects end-of-period loan growth of 3% to 5% and adjusted revenue growth of 3% to 6% for 2025[171]. - Synovus projects net interest income to increase by 3.7% and 1.8% if interest rates rise by 200 bps and 100 bps, respectively, and to decrease by 1.8% and 3.5% if rates fall by 100 bps and 200 bps, respectively[246].

Core Viewpoint - In times of market volatility, value investing becomes a preferred strategy as investors seek to buy undervalued stocks when others are selling at lower prices [1][2]. Value Investing Strategy - Value investors capitalize on market uncertainty by purchasing stocks at discounted prices when other investors sell [1]. - The strategy can lead to "value traps" if not understood properly, where stocks underperform due to persistent issues rather than temporary problems [3]. Importance of PEG Ratio - The PEG ratio, defined as (Price/Earnings)/Earnings Growth Rate, is a crucial metric for value investors, as a low PEG ratio indicates better value [5]. - Unlike P/E alone, the PEG ratio helps identify a stock's intrinsic value, although it has limitations regarding changing growth rates [5]. Screening Criteria for Value Stocks - Effective screening for value stocks includes criteria such as: - PEG Ratio less than industry median - P/E Ratio less than industry median - Zacks Rank 1 (Strong Buy) or 2 (Buy) - Market Capitalization greater than $1 billion - Average 20-Day Volume greater than 50,000 - Percentage Change in F1 Earnings Estimate Revisions greater than 5% - Value Score of A or B combined with a Zacks Rank of 1, 2, or 3 [6]. Selected Stocks - **Barrick Gold (GOLD)**: A leading gold mining company with 3.9 million ounces of gold and 195,000 tons of copper produced in 2024, holding 89 million ounces of proven and probable gold reserves. It has a Zacks Rank 2 and a Value Score of A, with a five-year expected growth rate of 33.5% [8][9]. - **StoneCo (STNE)**: A financial technology company in Brazil providing various financial services. It has a Zacks Rank 1 and a Value Score of B, with a long-term expected growth rate of 26.3% [9][10]. - **Synovus Financial (SNV)**: A diverse financial services company with a Zacks Rank 2 and a Value Score of A, boasting a five-year expected growth rate of 10.2% [11][12]. - **BGC Group, Inc. (BGC)**: A financial brokerage and technology company with a long-term expected earnings growth rate of 24.7%, holding a Value Score of B and a Zacks Rank of 1 [12][13].

Company Overview - Synovus Financial (SNV) is headquartered in Columbus and operates in the Finance sector [3] - The stock has experienced a price decline of 18.88% since the beginning of the year [3] Dividend Information - Synovus Financial currently pays a dividend of $0.39 per share, resulting in a dividend yield of 3.75% [3] - The average dividend yield for the Banks - Southeast industry is 2.5%, while the S&P 500's yield is 1.69% [3] - The company's annualized dividend of $1.56 has increased by 2.6% from the previous year [4] - Over the last 5 years, Synovus Financial has raised its dividend 3 times year-over-year, with an average annual increase of 4.37% [4] - The current payout ratio is 32%, indicating that 32% of its trailing 12-month EPS is distributed as dividends [4] Earnings Expectations - The Zacks Consensus Estimate for Synovus Financial's earnings in 2025 is $5.02 per share, reflecting an expected increase of 13.32% from the previous year [5] Investment Appeal - Synovus Financial is considered an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7]

Core Viewpoint - Synovus Financial (SNV) is currently positioned as a more attractive investment option compared to First Bancorp (FBP) based on various valuation metrics and earnings outlook [1][3]. Valuation Metrics - SNV has a forward P/E ratio of 8.29, while FBP has a forward P/E of 10.16, indicating that SNV is potentially undervalued [5]. - The PEG ratio for SNV is 0.81, suggesting a favorable earnings growth outlook compared to FBP's PEG ratio of 1.61 [5]. - SNV's P/B ratio stands at 1.20, compared to FBP's P/B of 1.83, further supporting SNV's valuation advantage [6]. Earnings Outlook - SNV holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while FBP has a Zacks Rank of 4 (Sell), suggesting a less favorable earnings outlook [3]. - The solid earnings outlook for SNV contributes to its superior valuation metrics and overall investment appeal [6]. Value Grades - SNV has been assigned a Value grade of A, while FBP has a Value grade of C, reflecting SNV's stronger position in terms of value investing criteria [6].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Synovus Financial (SNV) as a strong candidate for value investors due to its favorable financial metrics and Zacks Rank [2][4][9]. Financial Metrics - Synovus Financial (SNV) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for value investors [4]. - The Forward P/E ratio for SNV is 8.02, significantly lower than the industry average of 9.51, suggesting it may be undervalued [4]. - SNV's PEG ratio stands at 0.80, compared to the industry's average of 1.27, indicating a favorable valuation relative to expected earnings growth [5]. - The P/B ratio for SNV is 1.16, which is lower than the industry average of 1.63, further supporting its value proposition [6]. - The P/S ratio for SNV is 1.72, slightly below the industry's average of 1.83, reinforcing its attractiveness as a value stock [7]. - SNV has a P/CF ratio of 9.28, which is significantly lower than the industry average of 14.28, highlighting its strong cash flow position [8]. Investment Outlook - The combination of SNV's strong earnings outlook and favorable financial ratios suggests that the stock is likely undervalued at the moment, making it an impressive value stock [9].