Synovus reports Q3 EPS $1.46, consensus $1.35

Reports Q3 PPNR $266.7M, down 4% y/y. On a linked quarter basis, the net interest margin expanded 4 basis points to 3.41% due to higher loan yields and hedge maturities, partially offset by higher cash balances. Average loans increased 1% from the prior quarter, driven by growth in structured lending and commercial real estate lines of business. Period-end, linked quarter loan growth was slower; loan production was healthy, but was partially offset by loan paydowns, a decline in corporate and investment banking loan utilization and delayed closings. Period-end core deposits (excluding brokered deposits) were $45.0 billion, a decrease of $230.4 million sequentially, primarily a result of a decline in public funds. Brokered deposits increased $309.2 million from the prior quarter. Average deposit balances were flat, while average deposit costs were relatively stable sequentially at 2.23%, despite a 25 basis point Fed Funds cut in September. “Synovus (SNV) delivered solid third-quarter results, driven by continued net interest margin expansion, strong non-interest revenue growth and favorable credit trends,” said Synovus Chairman, CEO and President Kevin Blair. “While some may have anticipated that the merger announcement might distract from our near-term performance, our results this quarter tell a different story. We delivered continued strength in loan production, sustained momentum in fee generation and grew our team member base this quarter – all clear indicators of our focus, discipline and resilience. We feel highly confident that this momentum should continue in the final quarter of the year as we make great progress toward closing on our merger with Pinnacle Financial Partners in first quarter 2026.”