Q1 2025 Synovus Financial Corp Earnings Call Transcript
Key Points
- Synovus Financial Corp (SNV) reported strong first-quarter 2025 results with GAAP and adjusted earnings per share of $1.30, marking a 65% year-over-year increase.
- Net interest margin expanded to 3.35%, up 7 basis points from the previous quarter, driven by effective deposit repricing and stable fed funds environment.
- Loan production was the highest since the fourth quarter of 2022, with funded production increasing 16% quarter-over-quarter and 89% year-over-year.
- Core deposits increased 3% year-over-year, with positive trends in money market, interest-bearing demand, and savings accounts.
- The company maintained a strong capital position with a preliminary Common Equity Tier 1 ratio at 10.75% and completed $120 million of share repurchases in the first quarter.
- There was an increase in negative sentiment among commercial clients, with 17% expecting business activity to decline over the next 12 months, up from 10% last quarter.
- The company faces uncertainty due to recent tariff policy announcements, impacting client sentiment and potentially affecting economic growth.
- Adjusted non-interest revenue declined 6% sequentially, with lower commercial sponsorship income and softer capital market fees.
- The allowance for credit losses declined due to positive credit trends but was partially offset by a more adverse economic outlook.
- Loan growth was relatively muted, with only a $40 million increase in period-end loan balances, despite strong loan production trends.
Good morning and welcome to the Synovus first-quarter 2025 earnings call. (Operator Instructions) Please note, this event is being recorded.
I'll now turn the call over to Jennifer Demba, Senior Director-Investor Relations. Please go ahead.
Thank you and good morning. During today's call, we will reference the slides and press release that are available within the Investor Relations section of our website, synovus.com. Chairman, President, and CEO, Kevin Blair, will begin the call. He will be followed by Jamie Gregory, Executive Vice President and Chief Financial Officer. And they will be available to answer your questions at the end the call.
Our comments include forward-looking statements. These statements are subject to risks and uncertainties, and the actual results could vary materially. We list these factors that might cause these results to differ materially in our press release and in our SEC filings which are available on our website. We do not assume any obligation to
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