Synovus Financial (US:SNV) ZACKS·2025-11-14 17:31Core Insights - Synovus Financial's Q3 2025 adjusted earnings per share reached $1.46, exceeding the Zacks Consensus Estimate of $1.36 and showing a year-over-year increase from $1.23 [2][3] - The company's total revenues for the quarter were $611.1 million, an 8.2% increase from the prior year, and also surpassed the Zacks Consensus Estimate by 1% [4] - Non-interest revenues rose 13% year-over-year to $140.7 million, driven by higher core banking fees, wealth management income, and capital markets income [5] Financial Performance - Net interest income (NII) increased by 8% year-over-year to $474.7 million, with the net interest margin expanding by 4 basis points to 3.41% [4] - Non-interest expenses rose 11% year-over-year to $348.7 million, primarily due to higher merger-related expenses of $23.8 million [5] - The adjusted tangible efficiency ratio improved to 51.8%, down from 53% in the previous year, indicating increased profitability [5] Loan and Deposit Trends - Total loans as of September 30, 2025, were $43.8 billion, showing a slight increase from the previous quarter [6] - Total core deposits were $44.9 billion, reflecting a slight decline from the previous quarter [6] Credit Quality - Non-performing loans decreased by 33% year-over-year to $209.3 million, and total non-performing assets fell by 26% to $231.7 million [7] - The provision for credit losses was $21.7 million, down 7% year-over-year, with the non-performing assets ratio improving to 0.53% from 0.73% [7] Capital and Profitability Ratios - As of September 30, 2025, the Tier 1 capital ratio was 12.34%, and the total risk-based capital ratio was 14.07%, both showing improvement from the previous year [9] - Adjusted return on average assets increased to 1.42%, up from 1.26% in the prior year, while adjusted return on average common equity rose to 15.78% from 15.02% [9] Future Outlook - Management anticipates stable net charge-offs and expects adjusted non-interest expenses to be between $320-$325 million for Q4 [10] - For 2025, loan growth is projected at 4.5%, with core deposits expected to rise by 0.5% [11] - Adjusted revenues are anticipated to increase by 6.5% from 2024, while adjusted non-interest expenses are expected to rise by 2.5% [11] Industry Context - Synovus operates within the Zacks Banks - Southeast industry, where competitor Hancock Whitney reported a revenue increase of 4.9% year-over-year [15][16] - Hancock Whitney's EPS for the last quarter was $1.49, compared to $1.33 a year ago, with a projected EPS of $1.46 for the current quarter [16]