Diluted earnings (loss) per share of $1.48 versus $(0.16) in 2Q24

Adjusted diluted earnings per share of $1.48 versus $1.16 in 2Q24

Synovus Financial Corp. (NYSE:SNV) today reported financial results for the quarter ended June 30, 2025.

"Synovus delivered impressive 28% year-over-year growth in adjusted earnings per share in the second quarter -- an achievement driven by exceptional financial discipline, strategic execution and a steadfast commitment to operational excellence. Funded loan production surged 60% year over year, driving 8% annualized loan growth. Moreover, this quarter's positive operating leverage further strengthened our top-quartile efficiency ratio and profitability. Credit quality improved across all categories, and our Common Equity Tier 1 capital ratio reached the highest level in our company's history. Despite the continuing economic and global uncertainty, our performance reflects the strength of our strategy, resilience of our team and the trust of our clients. With this strong performance and conviction in our strategy, we've confidently raised our full-year 2025 earnings guidance," said Synovus Chairman, CEO and President Kevin Blair.

Second Quarter 2025 Highlights

Net income available to common shareholders was $206.3 million, or $1.48 per diluted share, compared to $183.7 million, or $1.30, in first quarter 2025 and $(23.7) million, or $(0.16), in second quarter 2024.
Adjusted net income available to common shareholders was $206.4 million, or $1.48 per diluted share, compared to $184.4 million, or $1.30, in first quarter 2025 and $169.6 million, or $1.16, in second quarter 2024. Adjusted second quarter 2024 earnings per share excludes a $257 million loss on the sale of securities from a bond portfolio repositioning.
Pre-provision net revenue was $278.0 million, which increased 6% from first quarter 2025 but was up sharply from second quarter 2024 as a result of the $257 million securities loss in the year ago period. Adjusted pre-provision net revenue of $279.7 million increased 5% on a linked quarter basis and rose 7% year over year.
Net interest income grew 1% from the first quarter and $24.6 million, or 6%, compared to second quarter 2024. On a linked quarter basis, the net interest margin expanded by 2 basis points to 3.37% as a result of a decline in deposit costs, fixed-rate asset repricing, hedge maturities, lower cash balances and a stable Fed Funds environment.
Period-end loans increased $888.0 million, or 2%, from first quarter 2025 fueled by specialty lending, corporate and investment banking lending and commercial banking.
Period-end core deposits (excluding brokered deposits) were $45.2 billion, a decline of $788.4 million sequentially, which included a $405 million drop in public funds quarter over quarter. Time deposits and interest-bearing demand deposits declined, partially offset by an increase in non-interest bearing deposits. Brokered deposits declined $129.6 million from the prior quarter. Average deposit costs fell 4 basis points sequentially to 2.22%.
Non-interest revenue of $134.1 million increased $17.7 million, or 15%, sequentially and was up sharply compared to second quarter 2024. Adjusted non-interest revenue of $130.9 million increased $13.6 million, or 12%, sequentially and increased $3.6 million, or 3%, from second quarter 2024. The sequential increase in adjusted non-interest revenue was primarily attributable to higher core banking fees, wealth management income, capital markets income, commercial sponsorship fees and a bank-owned life insurance gain. Year-over-year growth was impacted by lower capital markets income, which was more than offset by growth in core banking fees and wealth management income.
Non-interest expense and adjusted non-interest expense were $315.7 million and $312.4 million, respectively. Adjusted non-interest expense increased 1% from first quarter 2025 and 3% from a year ago, primarily due to higher employment expense. Excluding the FDIC special assessment reversals in second quarter 2024 and second quarter 2025, adjusted non-interest expense rose 2% year over year.
The non-performing loan and asset ratios improved to 0.59% compared to 0.67% in first quarter 2025, while the net charge-off ratio for second quarter 2025 was 0.17%, down from 0.20% in the prior quarter. Total past due loans were 0.24% of total loans outstanding.
Provision for credit losses of $3.2 million declined 70% sequentially and fell 88% compared to $26.4 million in second quarter 2024. The allowance for credit losses ratio (to loans) of 1.18% was down from 1.24% in the prior quarter, while our reserve coverage of non-performing loans improved to 200% in second quarter 2025 from 185% in the prior quarter.
The preliminary Common Equity Tier 1 ratio ended first quarter 2025 at 10.91% as core earnings accretion offset the impact of approximately $21 million in common stock repurchases.


Second Quarter Summary

	Reported									Adjusted
(dollars in thousands)		2Q25			1Q25			2Q24			2Q25			1Q25			2Q24
Net income (loss) available to common shareholders	$	206,320		$	183,691		$	(23,741	)	$	206,375		$	184,380		$	169,617
Diluted earnings per share		1.48			1.30			(0.16	)		1.48			1.30			1.16
Total revenue		593,696			570,850			306,147			592,083			573,243			563,597
Total loans		43,536,716			42,648,738			43,093,397		NA			NA			NA
Total deposits		49,925,007			50,843,061			50,195,778		NA			NA			NA
Return on avg assets⁽¹⁾		1.46	%		1.32	%		(0.10	)%		1.46	%		1.32	%		1.21	%
Return on avg common equity⁽¹⁾		16.71			15.48			(2.14	)		16.71			15.54			15.31
Return on avg tangible common equity⁽¹⁾		18.81			17.52			(2.20	)		18.82			17.58			17.57
Net interest margin⁽²⁾		3.37			3.35			3.20		NA			NA			NA
Efficiency ratio-TE⁽²⁾⁽³⁾		53.03			53.81			98.15			52.31			53.26			53.05
NCO ratio-QTD		0.17			0.20			0.32		NA			NA			NA
NPA ratio		0.59			0.67			0.60		NA			NA			NA
Common Equity Tier 1 capital (CET1) ratio⁽⁴⁾		10.91			10.77			10.60		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)	2Q25		1Q25		Linked Quarter Change		Linked Quarter % Change		2Q24		Year/Year Change			Year/Year % Change
Commercial & industrial	$	23,098.3	$	22,313.3	$	785.0	4	%	$	22,536.6	$	561.7		2	%
Commercial real estate		12,139.7		12,071.6		68.1	1			12,215.5		(75.8	)	(1	)
Consumer		8,298.7		8,263.8		34.8	—			8,341.3		(42.6	)	(1	)
Total loans	$	43,536.7	$	42,648.7	$	888.0	2	%	$	43,093.4	$	443.3		1	%
^*Amounts may not total due to rounding



Deposits^*

(dollars in millions)	2Q25		1Q25		Linked Quarter Change			Linked Quarter % Change		2Q24		Year/Year Change			Year/Year % Change
Non-interest-bearing DDA	$	11,219.8	$	11,095.8	$	124.0		1	%	$	11,177.7	$	42.1		—	%
Interest-bearing DDA		7,124.8		7,272.0		(147.2	)	(2	)		6,621.2		503.6		8
Money market		11,441.1		11,424.7		16.4		—			10,747.9		693.1		6
Savings		971.9		1,000.4		(28.5	)	(3	)		1,009.8		(38.0	)	(4	)
Public funds		7,719.9		8,125.0		(405.0	)	(5	)		7,111.9		608.0		9
Time deposits		6,730.4		7,078.5		(348.1	)	(5	)		8,125.2		(1,394.8	)	(17	)
Brokered deposits		4,717.1		4,846.7		(129.6	)	(3	)		5,402.0		(685.0	)	(13	)
Total deposits	$	49,925.0	$	50,843.1	$	(918.1	)	(2	)%	$	50,195.8	$	(270.8	)	(1	)%
^*Amounts may not total due to rounding



Income Statement Summary^**

(in thousands, except per share data)	2Q25			1Q25			Linked Quarter Change			Linked Quarter % Change		2Q24			Year/Year Change			Year/Year % Change
Net interest income	$	459,561		$	454,384		$	5,177		1	%	$	434,998		$	24,563		6	%
Non-interest revenue		134,135			116,466			17,669		15			(128,851	)		262,986		204
Non-interest expense		315,701			308,034			7,667		2			301,801			13,900		5
Provision for (reversal of) credit losses		3,245			10,921			(7,676	)	(70	)		26,404			(23,159	)	(88	)
Income before taxes	$	274,750		$	251,895		$	22,855		9	%	$	(22,058	)	$	296,808		nm
Income tax expense (benefit)		57,631			57,023			608		1			(7,378	)		65,009		nm
Net income (loss)		217,119			194,872			22,247		11			(14,680	)		231,799		nm
Less: Net income (loss) attributable to noncontrolling interest		(596	)		(142	)		(454	)	(320	)		(652	)		56		9
Net income (loss) attributable to Synovus Financial Corp.		217,715			195,014			22,701		12			(14,028	)		231,743		nm
Less: Preferred stock dividends		11,395			11,323			72		1			9,713			1,682		17
Net income (loss) available to common shareholders	$	206,320		$	183,691		$	22,629		12	%	$	(23,741	)	$	230,061		nm
Weighted average common shares outstanding, diluted		139,502			141,775			(2,273	)	(2	)%		145,565			(6,063	)	(4	)%
Diluted earnings (loss) per share	$	1.48		$	1.30		$	0.18		14		$	(0.16	)	$	1.64		nm
Adjusted diluted earnings per share⁽¹⁾		1.48			1.30			0.18		14			1.16			0.32		28
Effective tax rate		20.98	%		22.64	%							33.45	%
⁽¹⁾ Diluted shares of 146,034 (in thousands) used to calculate 2Q24 adjusted diluted earnings per share.
^**Amounts may not total due to rounding
NM - not meaningful

Second Quarter Earnings Conference Call

Synovus will host an earnings highlights conference call with an accompanying slide presentation at 8:30 a.m. ET on July 17, 2025. The earnings call can be accessed with the listen-only dial-in phone number: 833-470-1428 (code: 937395). 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 $61 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 June 30, 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.




Synovus

INCOME STATEMENT DATA
(Unaudited)

(Dollars in thousands, except per share data)	Six Months Ended June 30,

		2025			2024		'25 vs '24
		2025			2024		% Change

Interest income	$	1,538,407		$	1,583,952		(3	)%
Interest expense		624,462			730,108		(14	)

Net interest income		913,945			853,844		7
Provision for (reversal of) credit losses		14,166			80,384		(82	)

Net interest income after provision for credit losses		899,779			773,460		16

Non-interest revenue:
Service charges on deposit accounts		48,372			44,720		8
Fiduciary and asset management fees		40,249			38,741		4
Card fees		41,359			38,904		6
Brokerage revenue		41,107			43,164		(5	)
Mortgage banking income		7,773			7,362		6
Capital markets income		19,901			21,704		(8	)
Income from bank-owned life insurance		18,363			15,444		19
Investment securities gains (losses), net		—			(256,660	)	nm
Other non-interest revenue		33,477			36,658		(9	)

Total non-interest revenue		250,601			(9,963	)	nm

Non-interest expense:
Salaries and other personnel expense		377,692			367,928		3
Net occupancy, equipment, and software expense		97,241			93,223		4
Third-party processing and other services		45,409			42,041		8
Professional fees		19,976			23,286		(14	)
FDIC insurance and other regulatory fees		16,078			30,312		(47	)
Restructuring charges (reversals)		(1,220	)		866		nm
Other operating expenses		68,559			66,886		3

Total non-interest expense		623,735			624,542		—

Income before income taxes		526,645			138,955		279
Income tax expense		114,654			29,565		288

Net income		411,991			109,390		277

Less: Net income (loss) attributable to noncontrolling interest		(738	)		(1,089	)	32

Net income attributable to Synovus Financial Corp.		412,729			110,479		274

Less: Preferred stock dividends		22,718			19,398		17

Net income available to common shareholders	$	390,011		$	91,081		328	%

Net income per common share, basic	$	2.79		$	0.62		350	%

Net income per common share, diluted		2.77			0.62		347

Cash dividends declared per common share		0.78			0.76		3

Return on average assets *		1.39	%		0.37	%	102 bps
Return on average common equity *		16.11			4.07		nm

Weighted average common shares outstanding, basic		139,783			145,998		(4	)%
Weighted average common shares outstanding, diluted		140,770			146,568		(4	)

nm - not meaningful
bps - basis points
* - ratios are annualized
Amounts may not total due to rounding





Synovus

INCOME STATEMENT DATA
(Unaudited)

(Dollars in thousands, except per share data)	2025			2024			Second Quarter

	Second Quarter		First Quarter	Fourth Quarter	Third Quarter	Second Quarter	'25 vs '24
	Second Quarter		First Quarter	Fourth Quarter	Third Quarter	Second Quarter	% Change

Interest income	$	771,642	766,765	799,130	810,507	801,242	(4	)%
Interest expense		312,081	312,381	344,137	369,767	366,244	(15	)

Net interest income		459,561	454,384	454,993	440,740	434,998	6
Provision for (reversal of) credit losses		3,245	10,921

Synovus announces earnings for second quarter 2025