Synovus Financial (SNV) Q4 2024 earnings summary

Executive summary

• Q4 2024 diluted EPS was $1.25, up 6% sequentially and 195% year-over-year, with adjusted EPS also at $1.25; net income available to common shareholders rose 6% sequentially and 195% year-over-year.

• Full-year 2024 net income was $439.6M ($3.03 per share), down from $507.8M ($3.46 per share) in 2023; adjusted EPS for 2024 was $4.43, up from $4.12 in 2023.

• Achieved 4% growth in higher-growth commercial lending segments and 3% core deposit growth for the year, with strong growth in key fee-producing businesses.

• Maintained disciplined cost control, with adjusted non-interest expense down 12% year-over-year and efficiency ratio improving to 53.15%.

• Executed strategic initiatives, including new deposit verticals, product bundles, and continued investments in talent and technology.

Financial highlights

• Net interest income for Q4 2024 was $455M, up 3% sequentially and 4% year-over-year; net interest margin expanded to 3.28% with a 6 basis point increase.

• Adjusted non-interest revenue increased 2% sequentially and 144% year-over-year, led by treasury management, capital markets, and wealth management fees.

• Adjusted non-interest expense was $309M in Q4, down 12% year-over-year and 1% sequentially.

• Core deposit balances grew $1.1B (3%) sequentially, with a 6% increase in interest-bearing demand and money market funds.

• Provision for credit losses in Q4 2024 was $32.9M, up sequentially but down 28% year-over-year.

Outlook and guidance

• 2025 guidance unchanged: period-end loan growth expected at 3%-6%, core deposit growth at 3%-6%, and adjusted revenue and non-interest expense growth at 3%-7%.

• Net interest margin expected in the mid-320s in early 2025, with expansion to the mid-330s by year-end; CET1 ratio to be managed near current levels.

• Net charge-offs anticipated to remain in the 25-35 basis point range in the first half of 2025, assuming stable economic conditions.

• Board authorized a $400M share repurchase program for 2025; quarterly dividend to increase to $0.39.

• Management expects continued success in 2025, citing strong financial position and momentum in relationship-building strategies.