It has been about a month since the last earnings report for Synovus Financial (SNV Quick QuoteSNV - Free Report) . Shares have lost about 7.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Synovus due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Synovus Q2 Earnings Beat Estimates on Strong NII & Loan Growth

Synovus Financial 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 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.

Revenues Rise, Expenses Dip 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.

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.

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..

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.

2025 Outlook

Management expects loan growth of 4-6% from the 2024 reported figure.

Core deposit (excluding brokered accounts) is anticipated to rise 1-3% from 2024 actual.

Adjusted revenues are expected to rise 5-7% from the 2024 reported figure.

Adjusted non-interest revenues are forecast to be $495-$515 million.

Adjusted non-interest expenses are expected to rise 2-4% from those reported in 2024.

The CET 1 ratio is expected to be relatively stable.

Management expects net charge-offs (NCOs) to be relatively stable compared to 0.19% in the first half of 2025.

The effective income tax rate is anticipated to be 21-22%

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 6.72% due to these changes.

VGM Scores

Currently, Synovus has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock has a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Synovus has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Synovus belongs to the Zacks Banks - Southeast industry. Another stock from the same industry, Hancock Whitney (HWC Quick QuoteHWC - Free Report) , has gained 1.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.

Hancock Whitney reported revenues of $375.48 million in the last reported quarter, representing a year-over-year change of +4.4%. EPS of $1.37 for the same period compares with $1.31 a year ago.

Hancock Whitney is expected to post earnings of $1.41 per share for the current quarter, representing a year-over-year change of +6%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.1%.

Hancock Whitney has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.