Synovus Financial Corp. reported a net income of $195.0 million for the first quarter of 2025, translating to $1.30 per diluted share, a significant increase from $124.5 million, or $0.78 per diluted share, in the same period last year. This growth was primarily driven by an 8% rise in net interest income, which reached $454.4 million, up from $418.8 million in the first quarter of 2024. The net interest margin improved to 3.35%, reflecting effective deposit repricing and a favorable interest rate environment. The provision for credit losses decreased to $10.9 million from $54.0 million a year earlier, indicating improved credit performance.
Total loans, net of deferred fees and costs, stood at $42.65 billion as of March 31, 2025, a slight increase of $39.7 million from the previous quarter. The commercial and industrial (C&I) loans represented 52.3% of the total loan portfolio, while commercial real estate (CRE) and consumer loans accounted for 28.3% and 19.4%, respectively. The company experienced a decrease in C&I loans due to strategic payoffs and a focus on reducing non-relationship loans, while CRE loans increased due to heightened production and lower paydown activity.
On the operational front, Synovus reported a total of $50.84 billion in deposits, a decrease of $252.3 million from the end of 2024, primarily due to a decline in time deposits and seasonal fluctuations in commercial deposits. The company’s total average deposit costs decreased to 2.26%, down 20 basis points from the previous quarter, reflecting a shift towards lower-cost deposits. Additionally, Synovus repurchased 2.4 million shares of common stock at an average price of $49.41 during the quarter, as part of a broader $400 million share repurchase program approved by the Board.
Looking ahead, Synovus has provided updated guidance for 2025, projecting loan growth of 3% to 5% and core deposit growth of 3% to 5%. The company anticipates adjusted revenue growth of 3% to 6% and adjusted non-interest expense growth of 2% to 4%. The outlook reflects a cautious approach amid ongoing economic uncertainties, including inflation and interest rate fluctuations. Synovus remains committed to maintaining a strong capital position, with a Common Equity Tier 1 (CET1) ratio of 10.77% as of March 31, 2025, slightly down from 10.84% at the end of 2024.
About SYNOVUS FINANCIAL CORP
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