Synovus Financial Corp. Reports $196.5 Million Net Income for Q3 2025

Synovus Financial Corp. reported a net income of $196.5 million for the third quarter of 2025, translating to $1.33 per diluted share, marking an increase from $180.7 million, or $1.18 per diluted share, in the same quarter of the previous year. For the nine months ending September 30, 2025, net income available to common shareholders reached $575.6 million, significantly up from $260.7 million in the prior year. The increase in profitability was attributed to a rise in net interest income, which grew by 7% year-over-year to $1.39 billion, driven by lower funding costs and a decrease in the provision for credit losses, which fell to $35.9 million from $103.8 million in the previous year.

Total revenue for the third quarter was $615.4 million, an increase of 13% compared to $564.7 million in the same quarter of 2024. Non-interest revenue also saw a notable rise, reaching $140.7 million, up from $124.0 million a year earlier, primarily due to higher core banking fees and capital markets income. However, non-interest expenses increased by 11% to $348.7 million, largely due to $23.8 million in merger-related expenses associated with the pending merger with Pinnacle Financial Partners.

As of September 30, 2025, Synovus reported total loans of $43.75 billion, an increase of $1.14 billion from the end of 2024, with commercial and industrial loans being the largest segment. The bank's credit quality metrics improved, with non-performing loans (NPLs) decreasing to 0.48% of total loans, down from 0.73% a year prior. The allowance for credit losses (ACL) stood at $520.3 million, representing a coverage ratio of 1.19% of total loans, a slight decrease from 1.27% at the end of 2024.

In terms of strategic developments, Synovus is in the process of merging with Pinnacle Financial Partners, a move that is expected to close in the first quarter of 2026, pending regulatory and shareholder approvals. The merger is anticipated to create a combined entity with a significant presence in the Southeast, enhancing Synovus' market position. The company has paused share repurchases in light of the merger, focusing instead on integration planning and ensuring a seamless transition post-merger.

Looking ahead, Synovus has revised its guidance for 2025, projecting loan growth of approximately 4.5% and core deposit growth of about 0.5%. The company expects adjusted revenue growth of around 6.5% and adjusted non-interest expense growth of approximately 2.5%. The outlook reflects ongoing economic uncertainties, including potential interest rate changes and market conditions, which could impact the bank's performance in the coming quarters.