- Total deposits for Synovus were $50.84 billion, slightly below estimates of $51.12 billion, marking a 0.5% decrease quarter-over-quarter.
- Total loans were virtually unchanged at $42.65 billion compared to the previous quarter, aligning closely with the estimate of $42.63 billion.
- The net interest margin improved to 3.35% from 3.28% in the previous quarter, exceeding the 3.24% estimate.
- Net interest income reached $454.4 million, a minor 0.1% decrease quarter-over-quarter, surpassing the anticipated $443.7 million.
- Non-interest revenue fell by 2% year-over-year to $116.5 million, missing the estimate of $125.3 million.
- Non-interest expenses declined by 4.6% year-over-year to $308.0 million, below the estimate of $318.4 million.
- Total TE revenue rose by 6.2% year-over-year, totaling $572.4 million, which was slightly above the estimate of $572 million.
- Both adjusted and regular EPS came in at $1.30, significantly higher than last year’s figures of 79c and 78c respectively, and surpassing the estimate of $1.12.
- The provision for credit losses plummeted by 80% year-over-year to $10.9 million, well below the $34.7 million estimate.
- Net charge-offs decreased by 52% year-over-year to $21.4 million, lower than the estimated $31.7 million.
- The efficiency ratio-TE improved to 53.8% from 59.9% a year ago, bettering the estimated 55.9%.
- Tangible book value per share increased to $31.19, up from $27.03 a year ago, and slightly above the estimate of $31.02.
- Cash, cash equivalents, and restricted cash rose by 12% year-over-year to $2.71 billion, slightly under the estimate of $2.84 billion.
- Interest-earning deposits with banks and other cash equivalents grew by 12% year-over-year to $2.68 billion, falling short of the $2.78 billion estimate.
- Analysts’ recommendations include 11 buys and 7 holds, with no sells.
A look at Synovus Financial Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Smartkarma’s Smart Scores have painted a promising long-term outlook for Synovus Financial. With strong scores in Value, Dividend, and Resilience, the company is positioned well to weather market fluctuations and provide consistent returns to investors. Synovus’ focus on maintaining a healthy balance between value and dividend payouts showcases a commitment to both growth and rewarding shareholders, enhancing its attractiveness as an investment option.
While the Growth and Momentum scores are slightly lower, indicating some room for improvement in terms of expansion and market performance, Synovus Financial‘s overall outlook remains positive. As a financial services holding company with a wide range of offerings, including commercial and retail banking, as well as investment services across several states, Synovus is well-positioned to continue serving its customers effectively and sustainably.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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