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].

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a me ...

Investors interested in stocks from the Banks - Southeast sector have probably already heard of Synovus Financial (SNV) and First Bancorp (FBP) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that tar ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics an ...

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]