Synovus Q3 Net Income Soars on Strong Revenue Growth

TL;DR

**Synovus is crushing it, with net income doubling and a massive non-interest revenue boost, making it a strong buy despite deposit shifts.**

AI Summary

SYNOVUS FINANCIAL CORP. reported a significant increase in net income for the nine months ended September 30, 2025, reaching $608.496 million, a substantial rise from $290.074 million in the same period of 2024. Net interest income also grew to $1.388 billion for the nine months ended September 30, 2025, up from $1.294 billion in 2024. Total assets increased slightly to $60.485 billion as of September 30, 2025, from $60.233 billion at December 31, 2024. The company's total non-interest revenue saw a dramatic increase to $391.297 million for the nine months ended September 30, 2025, compared to $114.017 million in 2024, primarily driven by a reversal of investment securities losses. Loans, net of deferred fees and costs, increased to $43.753 billion from $42.609 billion, while the allowance for loan losses decreased to $469.521 million from $486.845 million. Total deposits decreased to $50.003 billion from $51.095 billion, and long-term debt increased significantly to $3.008 billion from $1.733 billion. Diluted net income per common share more than doubled to $4.10 for the nine months ended September 30, 2025, from $1.79 in the prior year.

Why It Matters

This filing reveals a robust financial performance for Synovus, with net income more than doubling year-over-year, which is a strong signal for investors. The significant increase in non-interest revenue, particularly the reversal of investment securities losses, suggests improved market conditions or strategic portfolio adjustments, potentially giving Synovus a competitive edge. While deposits saw a slight decline, the substantial increase in long-term debt indicates a shift in funding strategy that investors should monitor. Employees might see this as a sign of stability and growth, while customers could benefit from a financially stronger institution. The broader market will observe Synovus's ability to navigate interest rate environments and credit risk effectively.

Risk Assessment

Risk Level: medium — While net income and non-interest revenue show strong growth, the company experienced a decrease in total deposits by $1.092 billion from $51.095 billion to $50.003 billion, and a significant increase in long-term debt by $1.275 billion from $1.733 billion to $3.008 billion. This shift in funding structure could indicate increased reliance on more expensive or less stable funding sources, posing a medium-term liquidity risk.

Analyst Insight

Investors should consider increasing their position in SYNOVUS FINANCIAL CORP. (SNV) given the impressive net income growth and strong non-interest revenue performance. However, closely monitor the company's evolving funding mix, specifically the increase in long-term debt and decrease in deposits, for potential future interest expense impacts.

Financial Highlights

debt To Equity

4.96

revenue

$1.388B

operating Margin

N/A

total Assets

$60.485B

total Debt

$3.008B

net Income

$608.496M

eps

$4.10

gross Margin

N/A

cash Position

$2.274B

revenue Growth

+7.3%

Revenue Breakdown

Key Numbers

• $608.496M — Net Income (9M 2025) (Increased from $290.074M in 9M 2024, a 109.8% increase.)
• $1.388B — Net Interest Income (9M 2025) (Increased from $1.294B in 9M 2024, a 7.3% increase.)
• $391.297M — Total Non-Interest Revenue (9M 2025) (Increased from $114.017M in 9M 2024, a 243.2% increase, largely due to investment securities gains.)
• $4.10 — Diluted EPS (9M 2025) (Increased from $1.79 in 9M 2024, a 129.1% increase.)
• $50.003B — Total Deposits (Sep 30, 2025) (Decreased from $51.095B at Dec 31, 2024, a 2.1% decrease.)
• $3.008B — Long-Term Debt (Sep 30, 2025) (Increased from $1.733B at Dec 31, 2024, a 73.6% increase.)
• $43.753B — Loans, net of deferred fees and costs (Sep 30, 2025) (Increased from $42.609B at Dec 31, 2024, a 2.7% increase.)
• $469.521M — Allowance for Loan Losses (Sep 30, 2025) (Decreased from $486.845M at Dec 31, 2024, a 3.5% decrease.)
• $60.485B — Total Assets (Sep 30, 2025) (Increased from $60.233B at Dec 31, 2024, a 0.4% increase.)
• $5.839B — Total Equity (Sep 30, 2025) (Increased from $5.266B at Dec 31, 2024, a 10.9% increase.)

Key Players & Entities

• SYNOVUS FINANCIAL CORP. (company) — registrant
• $608.496 million (dollar_amount) — Net income for nine months ended September 30, 2025
• $290.074 million (dollar_amount) — Net income for nine months ended September 30, 2024
• $1.388 billion (dollar_amount) — Net interest income for nine months ended September 30, 2025
• $1.294 billion (dollar_amount) — Net interest income for nine months ended September 30, 2024
• $391.297 million (dollar_amount) — Total non-interest revenue for nine months ended September 30, 2025
• $114.017 million (dollar_amount) — Total non-interest revenue for nine months ended September 30, 2024
• $4.10 (dollar_amount) — Diluted net income per common share for nine months ended September 30, 2025
• $1.79 (dollar_amount) — Diluted net income per common share for nine months ended September 30, 2024
• $3.008 billion (dollar_amount) — Long-term debt as of September 30, 2025

FAQ

Risk Factors

• Interest Rate Sensitivity [medium — financial]: Fluctuations in interest rates can impact net interest income and the valuation of investment securities. The company's net interest income saw a modest increase of 7.3% to $1.388 billion for the nine months ended September 30, 2025, suggesting some sensitivity to rate changes.
• Credit Risk and Loan Portfolio Quality [medium — financial]: The allowance for loan losses decreased by 3.5% to $469.521 million as of September 30, 2025, from $486.845 million at December 31, 2024. While loans increased by 2.7% to $43.753 billion, the reduction in the allowance warrants monitoring for potential credit deterioration.
• Liquidity and Funding Sources [high — financial]: Total deposits decreased by 2.1% to $50.003 billion as of September 30, 2025. Concurrently, long-term debt increased significantly by 73.6% to $3.008 billion. This shift suggests a greater reliance on more expensive, long-term funding, potentially impacting future profitability and liquidity.
• Investment Securities Valuation [medium — market]: A substantial increase in non-interest revenue was driven by a reversal of investment securities losses. This indicates a significant impact from market fluctuations on the company's investment portfolio, which could be volatile.
• Technology and Cybersecurity [high — operational]: As a financial institution, Synovus is exposed to risks related to data breaches, system failures, and cyberattacks. While not explicitly detailed in the provided summary, these are inherent risks for the industry.
• Regulatory Compliance [high — regulatory]: The financial industry is heavily regulated. Non-compliance with banking regulations, capital requirements, and consumer protection laws can lead to significant fines and reputational damage.

Industry Context

Synovus Financial Corp. operates within the highly competitive U.S. banking sector. The industry is characterized by evolving customer preferences for digital services, increasing regulatory scrutiny, and the ongoing impact of interest rate environments on profitability. Banks are focusing on enhancing non-interest income streams and managing credit risk effectively.

Regulatory Implications

As a financial institution, Synovus is subject to stringent regulations from bodies like the Federal Reserve and the FDIC. Compliance with capital adequacy ratios, liquidity requirements, and consumer protection laws is paramount. Any missteps can lead to significant penalties and operational restrictions.

What Investors Should Do

1. Monitor the sustainability of non-interest revenue growth.
2. Analyze the shift in funding mix.
3. Assess the adequacy of the allowance for loan losses.
4. Evaluate the impact of interest rate changes on net interest margin.

Glossary

Net Interest Income

The difference between the interest income generated by a bank or financial institution and the interest paid out to its lenders and depositors. (A core measure of profitability for banks, reflecting their ability to earn from lending and investments while managing funding costs.)

Non-Interest Revenue

Revenue generated from sources other than net interest income, such as fees from services, trading gains, and other non-lending activities. (Diversifies a bank's revenue streams and can be a significant contributor to overall profitability, especially when driven by gains on investments.)

Allowance for Loan Losses

A contra-asset account that represents the estimated amount of loans in a portfolio that are expected to be uncollectible. (Indicates management's assessment of credit risk within the loan portfolio. A decrease may signal improved credit quality or a change in estimation methodology.)

Deposits

Funds held by a bank on behalf of its customers, representing a primary source of funding for lending activities. (A key indicator of a bank's funding base. Changes in deposit levels can affect liquidity and funding costs.)

Long-Term Debt

Borrowings by a company that are due more than one year from the balance sheet date. (Represents a significant source of funding that carries interest expense and maturity risk. A substantial increase suggests a shift in the company's capital structure.)

Diluted EPS

Earnings per share calculated by dividing net income by the total number of outstanding common shares, including all dilutive potential common shares (like stock options and convertible securities). (Provides a more conservative measure of profitability on a per-share basis, reflecting the potential dilution from outstanding securities.)

Year-Over-Year Comparison

Synovus Financial Corp. has demonstrated robust net income growth of 109.8% for the nine months ended September 30, 2025, compared to the prior year, reaching $608.496 million. This surge was significantly boosted by a 243.2% increase in non-interest revenue, largely due to investment securities gains, while net interest income saw a more modest 7.3% rise. Total assets grew slightly, but the company's funding structure shifted, with deposits decreasing by 2.1% and long-term debt increasing by a substantial 73.6%. The allowance for loan losses decreased by 3.5%, even as the loan portfolio expanded by 2.7%.

Key Financial Figures

• $1.00 — ange on which registered Common Stock, $1.00 Par Value SNV New York Stock Exchange
• $25 — ve Perpetual Preferred Stock, Series D, $25 liquidation preference Series E Prefer

Filing Documents

• syn-20250930.htm (10-Q) — 5150KB
• snv_09302025xfilingxex311.htm (EX-31.1) — 17KB
• snv_09302025xfilingxex312.htm (EX-31.2) — 17KB
• snv_09302025xfilingxex32.htm (EX-32) — 10KB
• syn-20250930_g1.jpg (GRAPHIC) — 6KB
• 0000018349-25-000121.txt ( ) — 22173KB
• syn-20250930.xsd (EX-101.SCH) — 63KB
• syn-20250930_cal.xml (EX-101.CAL) — 163KB
• syn-20250930_def.xml (EX-101.DEF) — 413KB
• syn-20250930_lab.xml (EX-101.LAB) — 850KB
• syn-20250930_pre.xml (EX-101.PRE) — 647KB
• syn-20250930_htm.xml (XML) — 6131KB

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 1 Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2025 and 2024 2 Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2025 and 2024 3 Consolidated Statements of Changes in Shareholders' Equity for the Three and Nine Months Ended September 30, 2025 and 2024 4 Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 6 Notes to Unaudited Interim Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations 40

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 40

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 66

Controls and Procedures 66

Item 4. Controls and Procedures 66 Part II . Other Information

Legal Proceedings 67

Item 1. Legal Proceedings 67

Risk Factors 67

Item 1A. Risk Factors 67

Unregistered Sales of Equity Securities and Use of Proceeds 69

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 69

Defaults Upon Senior Securities 69

Item 3. Defaults Upon Senior Securities 69

Mine Safety Disclosures 69

Item 4. Mine Safety Disclosures 69

Other Information 69

Item 5. Other Information 69

Exhibits 70

Item 6. Exhibits 70 Signatures 71 SYNOVUS FINANCIAL CORP. INDEX OF DEFINED TERMS Throughout this discussion, references to "Synovus", "we", "our", "us", "the Company" and similar terms refer to the consolidated entity consisting of Synovus Financial Corp. and its subsidiaries unless the context indicates that we refer only to the Parent Company, Synovus Financial Corp. When we refer to the "Bank" or "Synovus Bank" we mean our only bank subsidiary, Synovus Bank. ACL – Allowance for credit losses (ALL, reserve on unfunded loan commitments, and reserve, if required, on debt securities and other receivables) AFS – Available for sale ALCO – Synovus' Asset Liability Management Committee ALL – Allowance for loan losses AOCI – Accumulated other comprehensive income (loss) ASC – Accounting Standards Codification ASU – Accounting Standards Update ATM – Automatic teller machine Basel III – The third Basel Accord developed by the Basel Committee on Banking Supervision to strengthen existing regulatory capital requirements Board – Synovus' Board of Directors BOLI – Bank-owned life insurance policies bp(s) – Basis point(s) C&I – Commercial and industrial CCAR – Comprehensive Capital Analysis and Review CECL – Current expected credit losses CET1 – Common Equity Tier 1 Capital defined by Basel III capital rules CIB – Corporate and Investment Banking CMO – Collateralized mortgage obligation Code – Internal Revenue Code, as amended CODM – Chief operating decision maker Company – Synovus Financial Corp. and its wholly-owned subsidiaries, except where the context requires otherwise Covered Litigation – Certain Visa litigation for which Visa is indemnified by Visa USA members CRA – Community Reinvestment Act CRE – Commercial real estate DCF – Discounted cash flow ERM – Enterprise risk management EVE – Economic value of equity Exchange Act – Securities Exchange Act of 1934, as amended FASB – Financial Accounting Standards Board FDIC – Federal Deposit

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

- FINANCIAL STATEMENTS

ITEM 1. - FINANCIAL STATEMENTS SYNOVUS FINANCIAL CORP. CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except share and per share data) September 30, 2025 December 31, 2024 ASSETS Interest-earning deposits with banks and other cash and cash equivalents $ 2,239,915 $ 2,977,667 Federal funds sold and securities purchased under resale agreements 34,292 16,320 Total cash, cash equivalents, and restricted cash 2,274,207 2,993,987 Investment securities held to maturity 2,450,885 2,581,469 Investment securities available for sale 7,575,468 7,551,018 Loans held for sale (includes $ 41,083 and $ 33,448 measured at fair value, respectively) 147,811 90,111 Loans, net of deferred fees and costs 43,753,234 42,609,028 Allowance for loan losses ( 469,521 ) ( 486,845 ) Loans, net 43,283,713 42,122,183 Cash surrender value of bank-owned life insurance 1,156,297 1,139,988 Premises, equipment, and software, net 376,013 383,724 Goodwill 480,440 480,440 Other intangible assets, net 26,436 34,318 Other assets 2,713,905 2,856,406 Total assets $ 60,485,175 $ 60,233,644 LIABILITIES AND EQUITY Liabilities Deposits: Non-interest-bearing deposits $ 11,053,423 $ 11,596,119 Interest-bearing deposits 38,950,306 39,499,240 Total deposits 50,003,729 51,095,359 Federal funds purchased, securities sold under repurchase agreements, and other short-term borrowings 62,467 131,728 Long-term debt 3,008,195 1,733,109 Other liabilities 1,571,580 2,007,197 Total liabilities 54,645,971 54,967,393 Equity Shareholders' equity: Preferred stock - no par value; authorized 100,000,000 shares; issued 22,000,000 537,145 537,145 Common stock - $ 1.00 par value; authorized 342,857,142 shares; issued 172,734,160 and 172,185,507 , respectively; outstanding 138,813,060 and 141,165,908 , respectively 172,734 172,186 Additional paid-in capital 3,999,363 3,986,729 Treasury stock, at cost; 33,921,100 and 31,019,599 shares, respectively ( 1,359,096 ) ( 1,216,827 ) Accumulated o

View Full Filing

View this 10-Q filing on SEC EDGAR