Synovus announces earnings for first quarter 2025
Diluted earnings per share of $1.30 versus $0.78 in 1Q24
Adjusted diluted earnings per share of $1.30 versus $0.79 in 1Q24
COLUMBUS, Ga., April 16, 2025 - Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended March 31, 2025.
"In the first quarter, we delivered 67% year-over-year earnings per share growth, fueled by net interest margin expansion, a lower provision for credit losses and excellent expense management. We also continued to build momentum, as funded loan production was at the highest level since the fourth quarter of 2022, and our credit losses declined to the lowest level in more than three years. As the quarter progressed, borrowers and investors grew more cautious amid concerns surrounding the sustainability of consumer spending and potential impacts from higher tariffs and federal government layoffs. While the economic outlook and interest rate environment remains uncertain, we’re confident in our trajectory and the strength and resilience of our balance sheet and business model, as evidenced by our updated guidance for the year," said Synovus Chairman, CEO and President Kevin Blair.
First Quarter 2025 Highlights
- Net income available to common shareholders was $183.7 million, or $1.30 per diluted share, compared to $178.8 million or $1.25 in fourth quarter 2024 and $114.8 million or $0.78 in first quarter 2024.
- Adjusted net income available to common shareholders was $184.4 million, or $1.30 per diluted share, compared to $178.3 million or $1.25 in fourth quarter 2024 and $116.0 million or $0.79 in first quarter 2024.
- Pre-provision net revenue was $262.8 million, which fell 3% from fourth quarter 2024 but was up 22% from first quarter 2024. Adjusted pre-provision net revenue of $265.3 million declined 2% from fourth quarter 2024 and increased $47.5 million, or 22%, compared to first quarter 2024. Year-over-year growth was the result of a healthy increase in net interest income and a decline in non-interest expense.
- Net interest income was flat sequentially in the first quarter and increased $35.5 million, or 8%, compared to first quarter 2024. On a linked quarter basis, the net interest margin expanded 7 basis points to 3.35% as a result of effective deposit repricing, a lower cash position, hedge maturities and a stable Fed Funds environment, which more than offset a full quarter impact of the $500 million senior debt issuance in fourth quarter 2024.
- Period-end loans increased $39.7 million from fourth quarter 2024 as stronger loan production and core commercial lending growth was mostly offset by elevated loan payoffs and paydowns.
- Period-end core deposits (excluding brokered deposits) were $46.0 billion, a decline of $223.8 million sequentially. Seasonality in middle market deposits drove the majority of the decline. Average deposit costs declined 20 basis points sequentially to 2.26%.
- Non-interest revenue of $116.5 million declined $9.1 million sequentially and fell $2.4 million, or 2%, compared to first quarter 2024. Adjusted non-interest revenue of $117.3 million declined $7.3 million, or 6%, sequentially and increased $693 thousand, or 1%, compared to first quarter 2024. The sequential decline in adjusted non-interest revenue was largely from lower capital markets income and seasonally weaker commercial sponsorship fees. The year-over-year growth was primarily attributable to higher core banking fees and capital markets income.
- Non-interest expense and adjusted non-interest expense were $308.0 million and $307.9 million, respectively, both of which were relatively stable from the prior quarter. Non-interest expense declined 5% from first quarter 2024. Adjusted non-interest expense fell 3% year over year due to disciplined expense control and a $12.2 million decline in the FDIC special assessment. Excluding the FDIC special assessment, adjusted non-interest expense was flat year over year.
- Provision for credit losses of $10.9 million declined 67% sequentially and fell 80% compared to $54.0 million in first quarter 2024. The allowance for credit losses ratio (to loans) of 1.24% was down from 1.27% in the prior quarter, while our coverage of non-performing loans improved to 185% in first quarter 2025 from 174% in the prior quarter.
- The non-performing loan and asset ratios improved to 0.67% compared to 0.73% in fourth quarter 2024, while the net charge-off ratio for first quarter 2025 was 0.20%, down from 0.26% in the prior quarter. Total past due loans were 0.22% of total loans outstanding.
- The preliminary Common Equity Tier 1 ratio ended first quarter 2025 at 10.75% as core earnings accretion offset the impact of $120 million in common stock repurchases.
First Quarter Summary
|
|
Reported |
|
Adjusted |
||||||||
|
(dollars in thousands) |
1Q25 |
|
4Q24 |
|
1Q24 |
|
1Q25 |
|
4Q24 |
|
1Q24 |
|
Net income available to common shareholders |
$ 183,691 |
|
$ 178,848 |
|
$ 114,822 |
|
$ 184,380 |
|
$ 178,331 |
|
$ 115,973 |
|
Diluted earnings per share |
1.30 |
|
1.25 |
|
0.78 |
|
1.30 |
|
1.25 |
|
0.79 |
|
Total revenue |
570,850 |
|
580,580 |
|
537,734 |
|
573,243 |
|
581,054 |
|
536,745 |
|
Total loans |
42,648,738 |
|
42,609,028 |
|
43,309,877 |
|
NA |
|
NA |
|
NA |
|
Total deposits |
50,843,061 |
|
51,095,359 |
|
50,580,242 |
|
NA |
|
NA |
|
NA |
|
Return on avg assets(1) |
1.32 % |
|
1.25 % |
|
0.85 % |
|
1.32 % |
|
1.25 % |
|
0.85 % |
|
Return on avg common equity(1) |
15.48 |
|
14.75 |
|
10.17 |
|
15.54 |
|
14.71 |
|
10.27 |
|
Return on avg tangible common equity(1) |
17.52 |
|
16.72 |
|
11.71 |
|
17.58 |
|
16.67 |
|
11.83 |
|
Net interest margin(2) |
3.35 |
|
3.28 |
|
3.04 |
|
NA |
|
NA |
|
NA |
|
Efficiency ratio-TE(2)(3) |
53.81 |
|
53.15 |
|
59.87 |
|
53.26 |
|
52.69 |
|
58.88 |
|
NCO ratio-QTD |
0.20 |
|
0.26 |
|
0.41 |
|
NA |
|
NA |
|
NA |
|
NPA ratio |
0.67 |
|
0.73 |
|
0.86 |
|
NA |
|
NA |
|
NA |
|
Common Equity Tier 1 capital (CET1) ratio(4) |
10.75 |
|
10.84 |
|
10.38 |
|
NA |
|
NA |
|
NA |
(1) Annualized
(2) Taxable equivalent
(3) Adjusted tangible efficiency ratio
(4) Current period ratio preliminary
NA - not applicable
Balance Sheet
|
Loans* |
|
|
|
|
|
|
|
|
|
|
|||
|
(dollars in millions) |
1Q25 |
|
4Q24 |
|
Linked Quarter Change |
|
Linked Quarter % Change |
|
1Q24 |
|
Year/Year Change |
|
Year/Year % Change |
|
Commercial & industrial |
$ 22,313.3 |
|
$ 22,331.1 |
|
$ (17.8) |
|
— % |
|
$ 22,731.3 |
|
$ (418.0) |
|
(2) % |
|
Commercial real estate |
12,071.6 |
|
12,014.6 |
|
56.9 |
|
— |
|
12,194.0 |
|
(122.5) |
|
(1) |
|
Consumer |
8,263.8 |
|
8,263.3 |
|
0.6 |
|
— |
|
8,384.6 |
|
(120.7) |
|
(1) |
|
Total loans |
$ 42,648.7 |
|
$ 42,609.0 |
|
$ 39.7 |
|
— % |
|
$ 43,309.9 |
|
$ (661.2) |
|
(2) % |
*Amounts may not total due to rounding
|
Deposits* |
|
|
|
|
|
|
|
|
|||||
|
(dollars in millions) |
1Q25 |
|
4Q24 |
|
Linked Quarter Change |
|
Linked Quarter % Change |
|
1Q24 |
|
Year/Year Change |
|
Year/Year % Change |
|
Non-interest-bearing DDA |
$ 11,095.8 |
|
$ 10,974.6 |
|
$ 121.2 |
|
1 % |
|
$ 11,515.4 |
|
$ (419.6) |
|
(4) % |
|
Interest-bearing DDA |
7,272.0 |
|
7,199.7 |
|
72.4 |
|
1 |
|
6,478.8 |
|
793.2 |
|
12 |
|
Money market |
11,424.7 |
|
11,407.4 |
|
17.2 |
|
— |
|
10,712.7 |
|
711.9 |
|
7 |
|
Savings |
1,000.4 |
|
971.1 |
|
29.3 |
|
3 |
|
1,045.1 |
|
(44.7) |
|
(4) |
|
Public funds |
8,125.0 |
|
7,987.5 |
|
137.5 |
|
2 |
|
7,270.4 |
|
854.6 |
|
12 |
|
Time deposits |
7,078.5 |
|
7,679.9 |
|
(601.4) |
|
(8) |
|
7,838.9 |
|
(760.4) |
|
(10) |
|
Brokered deposits |
4,846.7 |
|
4,875.2 |
|
(28.5) |
|
(1) |
|
5,718.9 |
|
(872.2) |
|
(15) |
|
Total deposits |
$ 50,843.1 |
|
$ 51,095.4 |
|
$ (252.3) |
|
— % |
|
$ 50,580.2 |
|
$ 262.8 |
|
1 % |
*Amounts may not total due to rounding
|
Income Statement Summary** |
|
|
|
|
|
|
|
|
|||||
|
(in thousands, except per share data) |
1Q25 |
|
4Q24 |
|
Linked Quarter Change |
|
Linked Quarter % Change |
|
1Q24 |
|
Year/Year Change |
|
Year/Year % Change |
|
Net interest income |
$ 454,384 |
|
$ 454,993 |
|
$ (609) |
|
— % |
|
$ 418,846 |
|
$ 35,538 |
|
8 % |
|
Non-interest revenue |
116,466 |
|
125,587 |
|
(9,121) |
|
(7) |
|
118,888 |
|
(2,422) |
|
(2) |
|
Non-interest expense |
308,034 |
|
309,311 |
|
(1,277) |
|
— |
|
322,741 |
|
(14,707) |
|
(5) |
|
Provision for (reversal of) credit losses |
10,921 |
|
32,867 |
|
(21,946) |
|
(67) |
|
53,980 |
|
(43,059) |
|
(80) |
|
Income before taxes |
$ 251,895 |
|
$ 238,402 |
|
$ 13,493 |
|
6 % |
|
$ 161,013 |
|
$ 90,882 |
|
56 % |
|
Income tax expense (benefit) |
57,023 |
|
49,025 |
|
7,998 |
|
16 |
|
36,943 |
|
20,080 |
|
54 |
|
Net income |
194,872 |
|
189,377 |
|
5,495 |
|
3 |
|
124,070 |
|
70,802 |
|
57 |
|
Less: Net income (loss) attributable to noncontrolling interest |
(142) |
|
(1,049) |
|
907 |
|
86 |
|
(437) |
|
295 |
|
68 |
|
Net income attributable to Synovus Financial Corp. |
195,014 |
|
190,426 |
|
4,588 |
|
2 |
|
124,507 |
|
70,507 |
|
57 |
|
Less: Preferred stock dividends |
11,323 |
|
11,578 |
|
(255) |
|
(2) |
|
9,685 |
|
1,638 |
|
17 |
|
Net income available to common shareholders |
$ 183,691 |
|
$ 178,848 |
|
$ 4,843 |
|
3 % |
|
$ 114,822 |
|
$ 68,869 |
|
60 % |
|
Weighted average common shares outstanding, diluted |
141,775 |
|
142,694 |
|
(919) |
|
(1) % |
|
147,122 |
|
(5,347) |
|
(4) % |
|
Diluted earnings per share |
$ 1.30 |
|
$ 1.25 |
|
$ 0.05 |
|
4 |
|
$ 0.78 |
|
$ 0.52 |
|
67 |
|
Adjusted diluted earnings per share |
1.30 |
|
1.25 |
|
0.05 |
|
4 |
|
0.79 |
|
0.51 |
|
65 |
|
Effective tax rate |
22.64 % |
|
20.56 % |
|
|
|
|
|
22.94 % |
|
|
|
|
** Amounts may not total due to rounding
NM - not meaningful
First Quarter Earnings Conference Call
Synovus will host an earnings highlights conference call with an accompanying slide presentation at 8:30 a.m. ET on April 17, 2025. The earnings call can be accessed with the listen-only dial-in phone number: 833-470-1428 (code: 659807). Shareholders and other interested parties may also listen to this conference call via simultaneous internet broadcast. For a link to the webcast, go to investor.synovus.com/event. The replay will be archived for at least 12 months and will be available approximately one hour after the call.
Synovus Financial Corp. is a financial services company based in Columbus, Georgia, with approximately $60 billion in assets. Synovus provides commercial and consumer banking and a full suite of specialized products and services, including wealth services, treasury management, mortgage services, premium finance, asset-based lending, structured lending, capital markets and international banking. As of March 31, 2025, Synovus has 244 branches in Georgia, Alabama, Florida, South Carolina and Tennessee. Synovus is a Great Place to Work-Certified Company. Learn more about Synovus at synovus.com.
Forward-Looking Statements
This press release 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 identify these forward-looking statements through Synovus’ use of words such as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the future or otherwise regarding the outlook for Synovus’ future business and financial performance and/or the performance of the banking industry and economy in general. These forward-looking statements include, among others, our expectations regarding our future operating and financial performance; expectations on our growth strategy, expense and revenue initiatives, capital management, balance sheet management, and future profitability; expectations on credit quality and performance; and the assumptions underlying our expectations. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Synovus to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, Synovus’ management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements in this press release. Many of these factors are beyond Synovus’ ability to control or predict.
These forward-looking statements are based upon information presently known to Synovus’ management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in Synovus’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended Dec. 31, 2024, under the captions “Cautionary Notice Regarding Forward-Looking Statements” and “Risk Factors” and in Synovus’ quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as otherwise may be required by law.
Non-GAAP Financial Measures
The measures entitled adjusted non-interest revenue, non-interest expense; adjusted revenue taxable equivalent (TE); adjusted tangible efficiency ratio; adjusted pre-provision net revenue (PPNR); adjusted return on average assets; adjusted net income available to common shareholders; adjusted diluted earnings per share; adjusted return on average common equity; return on average tangible common equity; adjusted return on average tangible common equity; and tangible common equity ratio are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are total non-interest revenue; total non-interest expense; total revenue; efficiency ratio-TE; PPNR; return on average assets; net income available to common shareholders; diluted earnings per share; return on average common equity; and the ratio of total Synovus Financial Corp. shareholders' equity to total assets, respectively.
Management believes that these non-GAAP financial measures provide meaningful additional information about Synovus to assist management and investors in evaluating Synovus’ operating results, financial strength, the performance of its business, and the strength of its capital position. However, these non-GAAP financial measures have inherent limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of operating results or capital position as reported under GAAP. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant items and other factors, and since they are not required to be uniformly applied, they may not be comparable to other similarly titled measures at other companies. Adjusted non-interest revenue and adjusted revenue (TE) are measures used by management to evaluate non-interest revenue and total revenue exclusive of net investment securities gains (losses), fair value adjustments on non-qualified deferred compensation and other items not indicative of ongoing operations that could impact period-to-period comparisons. Adjusted non-interest expense and the adjusted tangible efficiency ratio are measures utilized by management to measure the success of expense management initiatives focused on reducing recurring controllable operating costs. Adjusted net income available to common shareholders, adjusted diluted earnings per share, adjusted return on average assets, and adjusted return on average common equity are measures used by management to evaluate operating results exclusive of items that are not indicative of ongoing operations and impact period-to-period comparisons. Return on average tangible common equity and adjusted return on average tangible common equity are measures used by management to compare Synovus’ performance with other financial institutions because it calculates the return available to common shareholders without the impact of intangible assets and their related amortization, thereby allowing management to evaluate the performance of the business consistently. Adjusted PPNR is used by management to evaluate PPNR exclusive of items that management believes are not indicative of ongoing operations and impact period-to-period comparisons. The tangible common equity ratio is used by stakeholders to assess our capital position. The computations of these measures are set forth in the attached tables.