- Synovus Financial Corp. (SNV, Financial) reports a 67% increase in Q1 2025 earnings per share to $1.30, compared to $0.78 in Q1 2024.
- Net interest margin expands to 3.35%, an increase of 7 basis points from Q4 2024.
- The provision for credit losses dropped by 80% year-over-year to $10.9 million.
Synovus Financial Corp. (SNV) has released its financial results for the first quarter of 2025, showcasing a strong performance with diluted earnings per share reaching $1.30, a significant 67% increase from the $0.78 reported in the same quarter last year. The net income available to common shareholders rose to $183.7 million, up from $114.8 million in Q1 2024.
A key highlight of the quarter was the expansion of the net interest margin to 3.35%, a 7 basis point increase from the prior quarter. This was achieved despite challenging market conditions and demonstrated the bank's effective management strategies, including successful deposit repricing.
Loan growth was modest during the quarter, with period-end loans seeing a slight increase of $39.7 million from Q4 2024. However, year-over-year, total loans decreased by 2%. On the deposit front, core deposits ended at $46.0 billion, representing a sequential decline of $223.8 million.
Credit quality improvements were notable, as the provision for credit losses plummeted by 80% year-over-year to $10.9 million. Moreover, Synovus maintained a robust Common Equity Tier 1 ratio of 10.75%, even after completing $120 million in common stock repurchases.
The bank also reported enhancements in credit metrics, with the non-performing loan ratio improving to 0.67% and the net charge-off ratio decreasing to 0.20%. These results exhibit the bank's strong capital position and resilience amidst economic uncertainties.
