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].

Group 1 - Synovus (SNV) shares have performed strongly over the past year due to improving credit quality metrics [1] - Despite strong performance, SNV shares have underperformed during the recent market sell-off, losing approximately 15% [1]

Earnings Results First Quarter 2025 Forward-Looking Statements This slide presentation and certain of our other filings with the Securities and Exchange Commission contain statements that constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. You can identif ...

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 ...

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