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Synovus Q2 Earnings Beat Estimates on Strong NII & Loan Growth
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Key Takeaways
SNV Q2 EPS of $1.48 beat estimates and rose YoY from $1.16 on stronger NII and lower credit loss provisions.
Revenue surged 93.9% year over year to $593.7M, driven by higher NII and a rebound in non-interest income.
Loans rose 2.1% sequentially, while net charge-offs fell 46.9% and the NPA ratio declined slightly YoY.
Synovus Financial Corp. (SNV - Free Report) reported second-quarter 2025 adjusted earnings per share of $1.48, which surpassed the Zacks Consensus Estimate of $1.25 per share. This compares favorably with the earnings of $1.16 per share a year ago.
Results benefited from strong year-over-year growth in net interest income (NII) and non-interest revenue, along with a fall in provisions for credit losses. Also, improving loan balances was a tailwind. However, an increase in expenses was a major headwind.
Net income (GAAP basis) available to common shareholders was $206.3 million against a loss of $23.7 million from the prior-year quarter.
Synovus Revenues & Expenses Rises Y/Y
Total revenues were $593.7 million, soaring 93.9% from the prior-year quarter. Also, the top line surpassed the Zacks Consensus Estimate by 1.7%.
NII rose 5.6% year over year to $459.6 million, while the net interest margin expanded 17 basis points to 3.37%. Both increases were a result of a decline in deposit costs, a lower cash position, hedge maturities and stable funding costs.
Non-interest revenues were $134.1 million compared with the negative non-interest income of $128.8 million in the prior-year quarter. The rise was primarily due to higher core banking fees, wealth management income and capital markets income.
Non-interest expenses were $315.7 million, up 4.6% year over year. The rise was mainly due to higher employment expenses.
The adjusted tangible efficiency ratio was 52.3%, down from 53.1% in the year-earlier quarter. A decline in the efficiency ratio indicates an increase in profitability.
SNV’s Loan Balance Rises, Deposit Declines
As of June 30, 2025, total loans of $43.5 billion rose 2.1% from the previous quarter. Total core deposits (excluding brokered deposits) were $49.9 billion, which declined 1.8% from the previous quarter.
SNV’s Credit Quality: Mixed Bag
Non-performing loans were $257.4 million, up marginally from the year-ago quarter. Total non-performing assets amounted to $258.6 million, slightly increasing year over year.
Provision for credit losses was $3.2 million, which plummeted 87.7% year over year.
The non-performing assets ratio was 0.59%, down from 0.60% in the year-ago period.
Net charge-offs decreased 46.9% to $18.3 million from the prior-year quarter. The net charge-off ratio was 0.17%, down from 0.32% in the prior-year quarter.
SNV’s Capital Ratios & Profitability Ratios Improve Y/Y
As of June 30, 2025, the Tier 1 capital ratio and total risk-based capital ratio were 12.01% and 13.74%, respectively, compared with 11.72% and 13.56% in the year-ago quarter. As of the same date, the Common Equity Tier 1 capital ratio was 10.91%, up from 10.60% in the year-ago quarter.
Adjusted return on average assets was 1.46%, up from 1.21% in the prior-year quarter. Adjusted return on average common equity was 16.71%, up from 15.31% in the year-earlier quarter.
Our Take on Synovus
The company’s solid capital position will aid capital distribution activities in the upcoming period, boosting investors’ confidence in the stock. Also, lower provisions, along with improving loan balances, will support its financials in the upcoming period. However, the rise in non-interest expenses and non-performing loans were concerning.
Synovus Financial Corp. Price, Consensus and EPS Surprise
Earnings Dates & Expectations of Other Bank Stocks
Wintrust Financial Corporation (WTFC - Free Report) is scheduled to release second-quarter 2025 earnings on July 21. The Zacks Consensus Estimate for WTFC’s quarterly earnings has been unchanged at $2.59 per share over the past seven days. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Bank of Hawaii (BOH - Free Report) is scheduled to announce second-quarter 2025 numbers on July 28. Over the past seven days, the Zacks Consensus Estimate for BOH’s quarterly earnings has been unchanged at $1.04 per share.
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Synovus Q2 Earnings Beat Estimates on Strong NII & Loan Growth
Key Takeaways
Synovus Financial Corp. (SNV - Free Report) reported second-quarter 2025 adjusted earnings per share of $1.48, which surpassed the Zacks Consensus Estimate of $1.25 per share. This compares favorably with the earnings of $1.16 per share a year ago.
Results benefited from strong year-over-year growth in net interest income (NII) and non-interest revenue, along with a fall in provisions for credit losses. Also, improving loan balances was a tailwind. However, an increase in expenses was a major headwind.
Net income (GAAP basis) available to common shareholders was $206.3 million against a loss of $23.7 million from the prior-year quarter.
Synovus Revenues & Expenses Rises Y/Y
Total revenues were $593.7 million, soaring 93.9% from the prior-year quarter. Also, the top line surpassed the Zacks Consensus Estimate by 1.7%.
NII rose 5.6% year over year to $459.6 million, while the net interest margin expanded 17 basis points to 3.37%. Both increases were a result of a decline in deposit costs, a lower cash position, hedge maturities and stable funding costs.
Non-interest revenues were $134.1 million compared with the negative non-interest income of $128.8 million in the prior-year quarter. The rise was primarily due to higher core banking fees, wealth management income and capital markets income.
Non-interest expenses were $315.7 million, up 4.6% year over year. The rise was mainly due to higher employment expenses.
The adjusted tangible efficiency ratio was 52.3%, down from 53.1% in the year-earlier quarter. A decline in the efficiency ratio indicates an increase in profitability.
SNV’s Loan Balance Rises, Deposit Declines
As of June 30, 2025, total loans of $43.5 billion rose 2.1% from the previous quarter. Total core deposits (excluding brokered deposits) were $49.9 billion, which declined 1.8% from the previous quarter.
SNV’s Credit Quality: Mixed Bag
Non-performing loans were $257.4 million, up marginally from the year-ago quarter. Total non-performing assets amounted to $258.6 million, slightly increasing year over year.
Provision for credit losses was $3.2 million, which plummeted 87.7% year over year.
The non-performing assets ratio was 0.59%, down from 0.60% in the year-ago period.
Net charge-offs decreased 46.9% to $18.3 million from the prior-year quarter. The net charge-off ratio was 0.17%, down from 0.32% in the prior-year quarter.
SNV’s Capital Ratios & Profitability Ratios Improve Y/Y
As of June 30, 2025, the Tier 1 capital ratio and total risk-based capital ratio were 12.01% and 13.74%, respectively, compared with 11.72% and 13.56% in the year-ago quarter. As of the same date, the Common Equity Tier 1 capital ratio was 10.91%, up from 10.60% in the year-ago quarter.
Adjusted return on average assets was 1.46%, up from 1.21% in the prior-year quarter. Adjusted return on average common equity was 16.71%, up from 15.31% in the year-earlier quarter.
Our Take on Synovus
The company’s solid capital position will aid capital distribution activities in the upcoming period, boosting investors’ confidence in the stock. Also, lower provisions, along with improving loan balances, will support its financials in the upcoming period. However, the rise in non-interest expenses and non-performing loans were concerning.
Synovus Financial Corp. Price, Consensus and EPS Surprise
Synovus Financial Corp. price-consensus-eps-surprise-chart | Synovus Financial Corp. Quote
Currently, Synovus carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Dates & Expectations of Other Bank Stocks
Wintrust Financial Corporation (WTFC - Free Report) is scheduled to release second-quarter 2025 earnings on July 21. The Zacks Consensus Estimate for WTFC’s quarterly earnings has been unchanged at $2.59 per share over the past seven days. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Bank of Hawaii (BOH - Free Report) is scheduled to announce second-quarter 2025 numbers on July 28. Over the past seven days, the Zacks Consensus Estimate for BOH’s quarterly earnings has been unchanged at $1.04 per share.