Synovus Financial Corp

Latest Results (17.11.2025):

In the third quarter of 2025, Synovus Financial Corp reported solid earnings performance with diluted earnings per share of $1.33 and adjusted diluted earnings per share of $1.46, reflecting improvement over the prior year’s third quarter. The report highlights include growth in net interest income, expanding net interest margin, robust non‐interest revenue, steady loan production, and strong credit metrics, while also providing an update on its pending merger with Pinnacle Financial Partners, expected to close in the first quarter of 2026.

Earnings & EPS Performance

Synovus Financial Corp recorded net income available to common shareholders of $185.6 million, resulting in a diluted EPS of $1.33 compared to $1.18 in 3Q24. The adjusted diluted EPS stood at $1.46, up from $1.23 in 3Q24, underscoring an improvement in profitability in the third quarter of 2025.

Revenue & Net Interest Income

The bank’s pre-provision net revenue was $266.7 million, and net interest income increased by $15.1 million (3% sequentially) with the net interest margin expanding by 4 basis points to 3.41% due to higher loan yields and hedge maturities, partially offset by higher cash balances.

Loan & Deposit Trends

Average loans saw a 1% sequential increase, driven by growth in structured lending and commercial real estate. Meanwhile, core deposits (excluding brokered deposits) were slightly lower at $45.0 billion, although brokered deposits rose by $309.2 million, reflecting shifting deposit patterns.

Non-Interest Revenue & Expenses

Non-interest revenue increased by 5% sequentially to $140.7 million, with adjusted figures rising in line, supported by strong contributions from wealth and capital markets departments. Non-interest expenses, however, increased by 10% sequentially, with merger-related costs contributing $23.8 million during the quarter.

Credit Performance & Risk Metrics

Credit quality continued to be robust, with the non-performing asset ratio improving to 0.53% from 0.59% and the net charge-off ratio decreasing to 0.14%. Additionally, the reserve for credit losses showed improvement, with coverage of non-performing loans rising significantly from 200% to 249%.

Merger Update

The report reaffirmed the pending merger with Pinnacle Financial Partners, expected to close in the first quarter of 2026. Integration planning is progressing well, with finalized post-closing leadership teams and completed headcount decisions scheduled for the fourth quarter of 2025, setting the stage for a smooth transition.