Synovus Financial Corp. Reports Strong Q2 2025 Turnaround with $206.3M Net Income

Synovus Financial Corp. reported a significant turnaround in its financial performance for the second quarter of 2025, with net income available to common shareholders reaching $206.3 million, or $1.48 per diluted share, compared to a net loss of $23.7 million, or $(0.16) per diluted share, in the same quarter of 2024. For the first half of 2025, net income available to common shareholders was $390.0 million, up from $91.1 million in the prior year. This improvement was attributed to a reduction in losses from investment securities, increased net interest income, and a decrease in provisions for credit losses, reflecting better credit performance.

Total revenue for the second quarter of 2025 was $593.7 million, a substantial increase from $306.1 million in the same period last year. Net interest income rose by 6% to $459.6 million, driven by a lower cost of funds and effective management of deposit costs, resulting in a net interest margin of 3.37%. Non-interest revenue also rebounded, totaling $134.1 million, compared to a loss of $128.9 million in the previous year, primarily due to the absence of significant losses from sales of available-for-sale investment securities that had impacted the prior year’s results.

In terms of operational metrics, Synovus reported total loans, net of deferred fees and costs, of $43.54 billion as of June 30, 2025, reflecting an increase of $927.7 million from December 31, 2024. This growth was largely driven by an increase in commercial and industrial loans, which accounted for 53% of the total loan portfolio. The company also noted a decrease in total deposits to $49.93 billion, down from $51.10 billion at the end of 2024, primarily due to a reduction in core deposits and brokered deposits.

The company’s credit quality metrics showed improvement, with non-performing assets (NPAs) decreasing to $258.6 million, or 0.59% of total loans, down from $309.5 million at the end of 2024. The allowance for credit losses (ACL) stood at $513.8 million, representing a coverage ratio of 1.18% of total loans, a decrease from 1.27% at year-end 2024. This decline was attributed to improved credit performance, although it was partially offset by increased economic uncertainty.

Looking ahead, Synovus has revised its guidance for 2025, projecting loan growth of 4% to 6% and core deposit growth of 1% to 3%. The company anticipates adjusted revenue growth of 5% to 7% and adjusted non-interest expense growth of 2% to 4%. The outlook reflects ongoing economic uncertainties, including potential interest rate changes and market conditions, as the company prepares for its upcoming merger with Pinnacle Financial Partners, which is expected to enhance its market position and operational capabilities.