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Synovus Financial NYSE:SNV Stock Report

Last Price


Market Cap







05 Oct, 2022


Company Financials +
SNV fundamental analysis
Snowflake Score
Future Growth2/6
Past Performance5/6
Financial Health6/6

SNV Stock Overview

Synovus Financial Corp. operates as the bank holding company for Synovus Bank that provides commercial and retail banking products and services.

Synovus Financial Corp. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Synovus Financial
Historical stock prices
Current Share PriceUS$41.56
52 Week HighUS$54.40
52 Week LowUS$34.15
1 Month Change5.43%
3 Month Change12.45%
1 Year Change-7.99%
3 Year Change25.18%
5 Year Change-11.78%
Change since IPO75.51%

Recent News & Updates

Sep 01

Synovus declares $0.34 dividend

Synovus (NYSE:SNV) declares $0.34/share quarterly dividend, in line with previous. Forward yield 3.39% Payable Oct. 3; for shareholders of record Sept. 15; ex-div Sept. 14. See SNV Dividend Scorecard, Yield Chart, & Dividend Growth.

Aug 18

Synovus Financial: Initiatives To Drive Earnings, Stock Appears Attractively Valued

Management’s initiatives, including the launch of a new platform and plans for team expansion, will drive loan growth through the end of 2023. Higher interest rates will boost the margin but also erode equity book value. Provisioning will likely return to a normal level for the remainder of 2022 and 2023. The December 2022 target price suggests a high upside from the current market price. Further, SNV is offering a decent dividend yield. Earnings of Synovus Financial Corp (SNV) will likely remain flattish this year before increasing next year. Higher provision expenses will likely drag earnings in 2022. On the other hand, management’s initiatives will drive loan growth, which will boost the bottom line. Earnings will also benefit from higher interest rates that will raise the margin. Overall, I'm expecting the company to report earnings of $4.86 per share for 2022, down by just 0.8% year-over-year. For 2023, I'm expecting earnings to grow by 4.3% to $5.07 per share. The year-end target price suggests a high upside from the current market price. Therefore, I am adopting a buy rating on Synovus Financial. Initiatives to Act as a Catalyst for Loan Growth Synovus Financial’s loan growth continued to remain strong in the second quarter of 2022, with loans increasing by 2.6%. The loan book has now grown at an annualized growth rate of over 8% consistently for the last three quarters. A big catalyst for loan growth is the upcoming launch of Synovus’ Banking as a Service platform (“BaaS”) called Maast. (Side note: BaaS is a model that allows non-banks to offer financial services to their customers by integrating with banks.) As mentioned in the second quarter’s earnings presentation, the pilot for Maast is currently underway. The management hopes to launch this product in 2023. Further, Synovus is planning to expand its team. As mentioned in the presentation, the company expects to hire 15 to 20 new corporate and investment banking team members by the end of 2022. Strong job markets also bode well for loan growth. Additionally, despite recent declines, the purchasing managers' index is still in expansionary territory (above 50). US Unemployment Rate data by YCharts The management mentioned in the second quarter’s conference call that it expects loan growth to be at or above the upper end of the previous guidance of 6% to 8%. Considering these factors, I'm expecting the loan book to grow by 4% in the second half of 2022, leading to full-year loan growth of 9%. For 2023, I'm expecting loan growth to slow down from the 2022 levels. However, growth will likely remain above the historical average organic loan growth thanks to the upcoming BaaS platform. Further Book Value Erosion Likely Synovus has a substantial available-for-sale debt security portfolio, whose value has taken a hit from rising interest rates. Due to the accumulated unrealized losses on the portfolio, the equity book value has plunged this year. (Side note: unrealized losses on available-for-sale securities bypass the income statement and directly affect the equity account through other comprehensive income.) The tangible book value per share plunged to $24.52 per share by the end of June 2022 from $29.46 per share at the end of December 2021. The equity book value will face further pressure in the third quarter because of the 75 basis points fed funds rate hike in July. Moreover, I'm expecting another 75 basis points hike in the remainder of the year before interest rates plateau. The following table shows my balance sheet estimates. FY18 FY19 FY20 FY21 FY22E FY23E Financial Position Net Loans 25,696 36,881 37,647 38,884 42,445 45,050 Growth of Net Loans 4.7% 43.5% 2.1% 3.3% 9.2% 6.1% Other Earning Assets 4,704 7,545 12,444 14,246 11,889 11,937 Deposits 26,720 38,406 46,692 49,427 50,020 52,051 Borrowings and Sub-Debt 2,545 4,073 1,438 1,468 2,474 2,575 Common equity 2,938 4,405 4,624 4,760 3,726 4,269 Book Value Per Share ($) 24.8 28.2 31.2 32.1 25.5 29.2 Tangible BVPS ($) 24.3 24.7 27.8 28.8 22.2 25.9 Source: SEC Filings, Author's Estimates (In USD million unless otherwise specified) Highly Rate-Sensitive Loan Portfolio to Lift the Margin A hefty 60% of the loan portfolio comprised of floating-rate loans at the end of June 2022, as mentioned in the earnings presentation. Therefore, the average earning-asset yield will remain highly responsive to interest rate hikes this year. Moreover, the deposit book is not very rate sensitive. In fact, Synovus’ total deposit beta was only 7% in June 2022, as mentioned in the presentation. However, the margin will take a hit from the recent offering of 5.2% senior notes. According to my calculations, the offer will increase the average funding cost by around four basis points. The results of the management's interest rate sensitivity analysis given in the 10-Q filing show that a 200-basis point hike in interest rates could boost the net interest income by 11% over twelve months. 2Q 2022 10-Q Filing This model assumes an immediate increase in market rates. As the rate increase has been gradual in reality, the impact will be less than 11%. Considering these factors, I'm expecting the margin to increase by 30 basis points in the second half of 2022 and by a further 10 basis points in early 2023. The margin expansion in 2023 will be attributed to a lagged effect of interest rate hikes in 2022. I'm not expecting the rising-rate cycle to extend beyond 2022. Provisioning Normalization to Drag Earnings this Year Synovus Financial released a large part of its loan loss reserves last year as the economy recovered faster than expected. The reserves are no longer excessive; therefore, provision reversals will likely remain at a normal level this year. Allowances made up 1.11% of total loans, while nonperforming loans made up 0.26% of total loans at the end of June 2022, as mentioned in the presentation. Therefore, the provisioning cover seems comfortable. Overall, I'm expecting the net provision expense to make up around 0.25% of total loans (annualized) in the last two quarters of 2022 and full-year 2023. In comparison, the net provision expense averaged 0.24% of total loans from 2017 to 2019. Expecting Flattish Earnings for 2022, Substantial Growth for 2023 Earnings will likely remain flattish in 2022 as higher provisioning will undermine loan growth. In 2023, however, earnings will likely trend upwards due to continued loan additions. Margin expansion will also play its part in boosting the bottom line. Overall, I'm expecting Synovus Financial to report earnings of $4.86 per share for 2022, down 0.8% year-over-year. For 2023, I'm expecting earnings to grow by 4% to $5.07 per share. The following table shows my income statement estimates. FY18 FY19 FY20 FY21 FY22E FY23E Income Statement Net interest income 1,148 1,596 1,513 1,533 1,755 2,033 Provision for loan losses 52 88 355 (106) 80 112 Non-interest income 280 356 507 450 418 443 Non-interest expense 829 1,099 1,180 1,100 1,144 1,258 Net income - Common Sh. 410 541 341 727 711 741 EPS - Diluted ($) 3.47 3.47 2.30 4.90 4.86 5.07 Source: SEC Filings, Author's Estimates (In USD million unless otherwise specified)

Aug 04

Synovus Financial to raise capital in senior notes offering

Synovus Financial (NYSE:SNV) announced an underwritten public offering of senior notes due 2025. Net proceeds to be used for general corporate purposes, which may include the repayment of existing debt.

Shareholder Returns

SNVUS BanksUS Market

Return vs Industry: SNV exceeded the US Banks industry which returned -21.8% over the past year.

Return vs Market: SNV exceeded the US Market which returned -18.2% over the past year.

Price Volatility

Is SNV's price volatile compared to industry and market?
SNV volatility
SNV Average Weekly Movement5.1%
Banks Industry Average Movement3.5%
Market Average Movement6.9%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: SNV is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SNV's weekly volatility (5%) has been stable over the past year.

About the Company

18885,005Kevin Blair

Synovus Financial Corp. operates as the bank holding company for Synovus Bank that provides commercial and retail banking products and services. It operates through three segments: Community Banking, Wholesale Banking, and Financial Management Services. The company’s commercial banking services include treasury management, asset management, capital market, and institutional trust services, as well as commercial, financial, and real estate loans.

Synovus Financial Corp. Fundamentals Summary

How do Synovus Financial's earnings and revenue compare to its market cap?
SNV fundamental statistics
Market CapUS$6.04b
Earnings (TTM)US$703.10m
Revenue (TTM)US$2.07b


P/E Ratio


P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SNV income statement (TTM)
Cost of RevenueUS$0
Gross ProfitUS$2.07b
Other ExpensesUS$1.37b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 20, 2022

Earnings per share (EPS)4.84
Gross Margin100.00%
Net Profit Margin33.99%
Debt/Equity Ratio54.4%

How did SNV perform over the long term?

See historical performance and comparison



Current Dividend Yield


Payout Ratio