Synovus Financial Corp (SNV) Q1 2025 Earnings Call Highlights: Strong EPS Growth and Robust ...
In This Article:
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Earnings Per Share (EPS): GAAP and adjusted EPS of $1.30; adjusted EPS increased 4% from the previous quarter and 65% year-over-year.
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Net Interest Income: $454 million, up 8% year-over-year and flat sequentially.
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Net Interest Margin: 3.35%, up 7 basis points from the previous quarter.
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Loan Growth: Loan balances increased by $40 million; funded loan production increased 16% quarter-over-quarter and 89% year-over-year.
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Core Deposits: Increased 3% year-over-year.
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Cost of Deposits: Average cost declined 20 basis points to 2.26%.
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Adjusted Non-Interest Revenue: $117 million, declined 6% sequentially and increased 1% year-over-year.
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Adjusted Non-Interest Expense: Flat sequentially and down 3% year-over-year.
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Net Charge-Offs: $21 million or 20 basis points, below the expected range of 25 to 35 basis points.
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Non-Performing Loans: Improved to 0.67% of total loans, down from 0.73% in the previous quarter.
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Allowance for Credit Losses: 1.24%, down from 1.27% at the end of 2024.
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Common Equity Tier 1 Ratio: 10.75%.
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Total Risk-Based Capital: 13.65%.
Release Date: April 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Synovus Financial Corp (NYSE:SNV) reported strong first-quarter 2025 results with GAAP and adjusted earnings per share of $1.30, marking a 65% year-over-year increase.
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Net interest margin expanded to 3.35%, up 7 basis points from the previous quarter, driven by effective deposit repricing and stable fed funds environment.
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Loan production was the highest since the fourth quarter of 2022, with funded production increasing 16% quarter-over-quarter and 89% year-over-year.
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Core deposits increased 3% year-over-year, with positive trends in money market, interest-bearing demand, and savings accounts.
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The company maintained a strong capital position with a preliminary Common Equity Tier 1 ratio at 10.75% and completed $120 million of share repurchases in the first quarter.
Negative Points
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There was an increase in negative sentiment among commercial clients, with 17% expecting business activity to decline over the next 12 months, up from 10% last quarter.
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The company faces uncertainty due to recent tariff policy announcements, impacting client sentiment and potentially affecting economic growth.
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Adjusted non-interest revenue declined 6% sequentially, with lower commercial sponsorship income and softer capital market fees.
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The allowance for credit losses declined due to positive credit trends but was partially offset by a more adverse economic outlook.
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Loan growth was relatively muted, with only a $40 million increase in period-end loan balances, despite strong loan production trends.