- Total deposits for Synovus in the third quarter were $50.19 billion, closely aligning with the previous quarter’s $50.20 billion, but slightly below the $50.38 billion estimate.
- The net interest margin increased to 3.22% from the previous quarter’s 3.2%, exceeding the estimated 3.19%.
- Net interest income rose by 1.3% quarter-over-quarter to $440.7 million, surpassing the $439.8 million estimate.
- Non-interest revenue saw a significant increase of 16% year-over-year, reaching $124.0 million.
- Non-interest expenses decreased by 11% year-over-year to $313.7 million, slightly above the $308.3 million estimate.
- Total Tax Equivalent (TE) revenue grew by 2.7% year-over-year to $566.1 million.
- Adjusted earnings per share (EPS) were reported at $1.23, substantially up from 84 cents the previous year, and beating the estimate of $1.08.
- Standard EPS increased to $1.18 from 60 cents year-over-year.
- The provision for credit losses diminished by 68% year-over-year to $23.4 million, below the $36.6 million estimate.
- Net charge-offs reduced by 60% year-over-year, amounting to $27.1 million, also below the estimated $33.2 million.
- The efficiency ratio (TE) improved significantly to 55.4% from 64.1% year-over-year, nearly hitting the 55.1% estimate.
- Tangible book value per share increased to $30.29 from last year’s $23.74, surpassing the estimate of $28.89.
- Analyst recommendations included 11 buys, 6 holds, and 0 sells.
A look at Synovus Financial Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
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
Based on the Smartkarma Smart Scores, Synovus Financial shows a positive long-term outlook. With high scores in Value, Dividend, Resilience, and Momentum, the company is positioned well across these key factors. A strong Value score indicates that the company may be undervalued relative to its financials and market position, presenting a potentially attractive investment opportunity. Additionally, a high Dividend score suggests that Synovus Financial offers a solid dividend payout to investors, enhancing its overall appeal. Furthermore, the company’s resilience score implies that it has the ability to weather difficult market conditions and economic uncertainties. Coupled with a promising Momentum score, Synovus Financial appears to have positive growth prospects.
Synovus Financial Corp. is a financial services holding company that offers a range of financial services to customers in multiple states. With a focus on commercial and retail banking, as well as investment services, the company serves clients in Georgia, Alabama, South Carolina, Florida, and Tennessee. Given its strong Smart Scores in various categories like Value, Dividend, Resilience, and Momentum, Synovus Financial seems well-positioned to continue its growth and maintain stability in the long term. Investors may find the company’s overall outlook to be favorable based on these factors.
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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