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 up 18% year-over-year, excluding FDIC special assessment.

• Full-year 2024 net income available to common shareholders was $439.6M, with adjusted net income at $641.9M and adjusted EPS at $4.43.

• Efficiency ratio improved to 53.15%, with adjusted tangible efficiency ratio at 52.69%, reflecting disciplined cost control.

• CET1 ratio increased to 10.84%, the highest in over a decade, with $270M in share repurchases and $500M in senior notes issued.

• Growth in core commercial lending, deposits, and key fee-producing businesses, supported by strategic initiatives and product bundles.

Financial highlights

• Net interest income for Q4 2024 was $455M, up 3% sequentially and 4% year-over-year, with NIM rising to 3.28%.

• Adjusted revenue increased 3% both sequentially and year-over-year, reaching $581.1M.

• Non-interest revenue for Q4 2024 was $125.6M, up 1% sequentially and 144% year-over-year, driven by core banking, wealth, and capital markets.

• Adjusted non-interest expense declined 12% year-over-year, with an adjusted efficiency ratio of 54.33%.

• Net charge-offs were 0.26% of average loans, at the lower end of the expected range.

Outlook and guidance

• 2025 guidance projects 3%-6% period-end loan and core deposit growth, with adjusted revenue and non-interest expense growth of 3%-7%.

• NIM expected in the mid-3.20% range in early 2025, expanding to mid-3.30% by year-end.

• Net charge-offs forecasted at 0.25%-0.35% in H1 2025, assuming stable economic conditions.

• Quarterly dividend to increase to $0.39/share and $400M share repurchase program authorized for 2025.

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