Synovus announces earnings for second quarter 2025
Adjusted net income available to common shareholders was $206.4 million, or $1.48 per diluted share, compared to $184.4 million, or $1.30, in first quarter 2025 and $169.6 million, or $1.16, in second quarter 2024. Adjusted second quarter 2024 earnings per share excludes a $257 million loss on the sale of securities from a bond portfolio repositioning.
Pre-provision net revenue was $278.0 million, which increased 6% from first quarter 2025 but was up sharply from second quarter 2024 as a result of the $257 million securities loss in the year ago period. Adjusted pre-provision net revenue of $279.7 million increased 5% on a linked quarter basis and rose 7% year over year.
Net interest income grew 1% from the first quarter and $24.6 million, or 6%, compared to second quarter 2024. On a linked quarter basis, the net interest margin expanded by 2 basis points to 3.37% as a result of a decline in deposit costs, fixed-rate asset repricing, hedge maturities, lower cash balances and a stable Fed Funds environment.
Period-end loans increased $888.0 million, or 2%, from first quarter 2025 fueled by specialty lending, corporate and investment banking lending and commercial banking.
Period-end core deposits (excluding brokered deposits) were $45.2 billion, a decline of $788.4 million sequentially, which included a $405 million drop in public funds quarter over quarter. Time deposits and interest-bearing demand deposits declined, partially offset by an increase in non-interest bearing deposits. Brokered deposits declined $129.6 million from the prior quarter. Average deposit costs fell 4 basis points sequentially to 2.22%.
Non-interest revenue of $134.1 million increased $17.7 million, or 15%, sequentially and was up sharply compared to second quarter 2024. Adjusted non-interest revenue of $130.9 million increased $13.6 million, or 12%, sequentially and increased $3.6 million, or 3%, from second quarter 2024. The sequential increase in adjusted non-interest revenue was primarily attributable to higher core banking fees, wealth management income, capital markets income, commercial sponsorship fees and a bank-owned life insurance gain. Year-over-year growth was impacted by lower capital markets income, which was more than offset by growth in core banking fees and wealth management income.
Non-interest expense and adjusted non-interest expense were $315.7 million and $312.4 million, respectively. Adjusted non-interest expense increased 1% from first quarter 2025 and 3% from a year ago, primarily due to higher employment expense. Excluding the FDIC special assessment reversals in second quarter 2024 and second quarter 2025, adjusted non-interest expense rose 2% year over year.
The non-performing loan and asset ratios improved to 0.59% compared to 0.67% in first quarter 2025, while the net charge-off ratio for second quarter 2025 was 0.17%, down from 0.20% in the prior quarter. Total past due loans were 0.24% of total loans outstanding.
Provision for credit losses of $3.2 million declined 70% sequentially and fell 88% compared to $26.4 million in second quarter 2024. The allowance for credit losses ratio (to loans) of 1.18% was down from 1.24% in the prior quarter, while our reserve coverage of non-performing loans improved to 200% in second quarter 2025 from 185% in the prior quarter.
The preliminary Common Equity Tier 1 ratio ended first quarter 2025 at 10.91% as core earnings accretion offset the impact of approximately $21 million in common stock repurchases.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
40 minutes ago
- Yahoo
Franklin Financial Earnings Surge 95% Y/Y in Q2, Stock Slips
Shares of Franklin Financial Services Corporation FRAF have declined 6.2% since reporting results for the second quarter of 2025 on July 22. In contrast, the S&P 500 index has risen 0.9% over the same period. Despite this post-earnings dip, FRAF has seen a significant rally of 23.7% over the past month compared with 3.9% growth in the S&P 500. Robust Y/Y Financial Performance Franklin Financial delivered strong second-quarter results, with net income surging 94.8% year over year to $5.9 million, or $1.32 per diluted share, from $3 million, or 66 cents per diluted share, in the prior-year period. Revenue growth was driven largely by a 21.3% increase in net interest income to $17.2 million from $14.2 million a year earlier. The gains were primarily attributed to higher interest income from the expanding loan portfolio. For the first half of 2025, net income rose 53.7% to $9.8 million ($2.20 per diluted share) from the $6.4 million ($1.43 per diluted share) registered in the first six months of 2024. Net interest income for the six months rose 18.3% to $32.8 million, underpinned by a 13.2% increase in commercial real estate loans. Franklin Financial Services Corp. Price, Consensus and EPS Surprise Franklin Financial Services Corp. price-consensus-eps-surprise-chart | Franklin Financial Services Corp. Quote Key Business Metrics: Strong Growth Across Core Segments Franklin Financial's balance sheet reflected healthy expansion. Total assets climbed 4.1% from the end of 2024 to $2.29 billion as of June 30, 2025. Loan growth was particularly strong, with total net loans rising 8.7% over the six months to $1.5 billion. The loan expansion was led by a $68.9-million increase in commercial real estate loans, which now total $872.2 million. Notably, 41% of the CRE portfolio is owner-occupied. Deposits increased 4.3% from Dec. 31, 2024, to $1.89 billion at quarter-end. The rise was mainly driven by money management accounts, partially offset by declines in interest-bearing checking and savings balances. Approximately 89% of deposits were either FDIC-insured or collateralized. Shareholders' equity grew by $12.6 million to $157.4 million, aided by retained earnings of $6.9 million (net) of $2.9 million in dividends. Management Commentary: Focused Expansion & Conservative Risk Posture Management emphasized disciplined growth and asset quality management in its commentary. While the company experienced a marked increase in non-performing loans from $266 thousand at the end of 2024 to $10.8 million at the end of the second quarter, this deterioration was largely concentrated in two loans — a $7.4-million construction loan (current on payments) and a $2.9-million hotel loan slated for auction in July. Despite this uptick, the allowance for credit losses held steady at 1.26% of loans. Executives reiterated the bank's conservative risk approach and highlighted progress in commercial real estate lending and wealth management. Assets under management grew 6.9% year over year to $1.36 billion. Drivers of Performance: Loan & Deposit Momentum Boost Margins The primary driver of the company's performance was loan portfolio growth, particularly in commercial real estate, which led to a 15.4% year-over-year increase in average loan balances. The yield on interest-earning assets improved to 5.30% in the second quarter from 5.10% in the prior-year period. Meanwhile, deposit costs rose year over year from 1.74% to 1.95% but moderated slightly to 1.90% in the second quarter, suggesting stabilizing funding costs. This helped lift the net interest margin to 3.21% from 2.99% in the same quarter last year. Non-interest income also supported the overall performance, climbing 17.3% to $5.1 million for the quarter, boosted by higher wealth management fees, loan-related charges and a one-time refund on state sales taxes. Operating expenses increased just 0.4% year over year to $14.4 million, indicating cost discipline despite inflationary pressures. View: No Specific Outlook Issued Management's discussion suggests a continued focus on expanding commercial lending and managing credit quality, particularly in response to recent non-performing loan developments. Other Developments In January 2025, Franklin Financial authorized an open market share repurchase plan for up to 150,000 shares over one year. As of June 30, 6,700 shares had been repurchased under the plan, primarily to fund the dividend reinvestment program. Additionally, the board declared a third-quarter dividend of 33 cents per share, consistent with the second quarter but representing a 3.1% increase over the dividend declared for the third quarter of 2024. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Franklin Financial Services Corp. (FRAF): Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
2 hours ago
- CNBC
Southwest offers new 100,000-point bonus as it revamps its credit cards
Southwest Airline's seating policy isn't the only thing that's changing; the airline and Chase announced updates to the Southwest Rapid Rewards credit cards — adding enhanced benefits like pre-flight seat selection and early boarding, new earning categories and a welcome bonus any loyal Southwest flyer would love. For a limited time, now through Sep. 17, new Southwest Rapid Rewards Priority, Premier or Plus consumer credit cardmembers can earn 100,000 bonus points after spending $4,000 in the first five months from account opening. This is double the previous welcome bonus of 50,000 points, and it marks Southwest's best points offer this year. Along with the additional perks come other costs: card annual fees are increasing and Southwest will be expiring a few current benefits and reward categories. Here's a breakdown by card: Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent Saint offers three packages for credit repair services and a 90-day money-back guarantee for services. It has received an A rating and is accredited by the Better Business Credit People's Credit Report Repair service is relatively affordable compared to other programs in the space. Even the most basic package (the standard package) includes unlimited challenges to all three credit bureaus. Upgrading to the premium package includes escalated disputes and monthly credit score reports and score refreshes. On Chase's site On Chase's site Good to Excellent670–850 19.99% - 28.49% variable $99 Earn 100,000 points. See rates and fees. Terms apply. Member FDIC. Read our Southwest Rapid Rewards® Plus Credit Card review. The Southwest Rapid Rewards® Plus Credit Card is an affordable card that makes sense for the occasional Southwest $5 or 5% of the amount of each transfer, whichever is greater The Southwest Rapid Rewards Plus annual fee is rising from $69 to $99, a $30 hike. Good to Excellent670–850 20.49% - 27.49% variable $149 Earn 100,000 bonus points. Terms apply. Information about the Southwest Rapid Rewards® Premier Credit Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication. Read our Southwest Rapid Rewards Premier Credit Card review The Southwest Rapid Rewards® Premier Credit Card is Southwest's mid-tier card and is valuable if you regularly travel to or from destinations Southwest serves.5%, minimum $5 The Southwest Rapid Rewards Premier annual fee is increasing from $99 to $149, a $50 rise. On Chase's site On Chase's site Good to Excellent670–850 19.99% - 28.49% variable $229 Earn 100,000 points. See rates and fees. Terms apply. Member FDIC. Read our Southwest Rapid Rewards® Priority Credit Card review. The Southwest Rapid Rewards® Priority Credit Card is a perfect fit for serious Southwest fans who can easily maximize its benefits like upgraded boardings and an annual travel Southwest Rapid Rewards Priority annual fee is being hiked from $149 to $229, an $80 increase. Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability. Good to Excellent670–850Earn 75,000 bonus points On Chase's site See rates and fees. Terms apply. Good to Excellent670–850Earn 75,000 miles Terms apply. The Southwest Rapid Rewards Plus Business is currently unavailable for new users, but carries a $99 annual fee. On Chase's site On Chase's site You can earn unlimited tier qualifying points for spending with this card. Good to Excellent670–850 19.99% - 28.49% variable $149 Earn 60,000 points See rates and fees. Terms apply. Member FDIC. Read our Southwest Rapid Rewards Premier Business Credit Card review The Southwest® Rapid Rewards® Premier Business Credit Card can help your business save on Southwest travel but offers less value for other $5 or 5% of the amount of each transfer, whichever is greater The Southwest Rapid Rewards Premier Business annual fee is increasing from $99 to $149, a $50 rise. On Chase's site On Chase's site Every account anniversary year you'll receive a 9,000-point bonus. Good to Excellent670–850 19.99% - 28.49% variable $299 Earn 80,000 points See rates and fees. Terms apply. Member FDIC. The Southwest® Rapid Rewards® Performance Business Credit Card is Southwest's most premium business credit card and can be incredibly rewarding for frequent flyers, especially those chasing the Southwest Companion Pass or other Southwest elite $5 or 5% of the amount of each transfer, whichever is greater The Southwest Rapid Rewards Performance Business annual fee is being bumped up from $199 to $299, a $100 increase. If you fly on Southwest with some frequency, chances are you'll be able to get some extra value out of these cards. Not only will you have opportunities when you book with Southwest, but with the addition of new rewards categories, you have more opportunities to earn Southwest Rapid Rewards, which can be redeemed for valuable rewards like flights and hotel stays. The Southwest cards are losing some benefits in categories like transit, internet and phone services, plus increasing annual fees. While a Southwest credit card may still make sense if you frequently travel with Southwest, it might be harder to earn rewards points if you don't often spend in the new rewards categories. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Yahoo
3 hours ago
- Yahoo
Green Dot vs. SoFi: Which Fintech Bank Powerhouse is the Smarter Pick?
Green Dot GDOT and SoFi Technologies SOFI are both U.S.-listed fintech firms competing in the rapidly evolving digital banking space. Green Dot operates primarily as a provider of prepaid debit cards and banking-as-a-service (BaaS) solutions, enabling embedded finance for third-party platforms. Its model focuses on powering banking infrastructure behind major brands and retailers. SoFi, by contrast, runs a full-stack digital banking platform and direct lending operation, offering personal loans, student loan refinancing and mortgage products. With a national bank charter, SoFi also provides high-yield savings, checking and investment tools, positioning itself as a one-stop shop for consumer financial services. Green Dot's Case Green Dot remains committed to driving the long-term growth of its business through a combination of strategic innovation and deep partnerships. A key focus lies in acquiring long-term users by issuing prepaid cards, both under its own brand, widely available in retail stores, and through co-branded offerings such as the Walmart MoneyCard. In addition to its core services, such as prepaid cards and tax processing, Green Dot leverages its proprietary technology platform and FDIC-insured banking license to deliver "Banking-as-a-Service" (BaaS). This model enables Green Dot to offer white-label banking solutions to major corporations, including Walmart WMT, Uber UBER, and Apple AAPL. Through these BaaS partnerships, Green Dot integrates its financial products directly into the ecosystems of Walmart, Uber, and Apple, thereby gaining access to vast and loyal customer bases. As users from these platforms adopt Green Dot-powered banking services, the company generates revenues through interchange fees when customers use their debit cards and earns interest income by retaining deposits. This strategy strengthens the company's relevance in the digital banking space while monetizing high-volume consumer activity. What sets Green Dot apart from other BaaS providers is its asset-light balance sheet, which supports higher interchange margins and limits dependence on interest income. This financial structure enhances operational efficiency, ensuring that its BaaS model remains both scalable and profitable. By continuing to deepen relationships with household names like Walmart, Uber and Apple, Green Dot is well-positioned to sustain growth and expand its footprint across the embedded finance landscape. SoFi's Case SoFi's land-and-expand strategy remains a core strength, provided it is effectively managed. The company has a strong track record of executing this ambitious growth approach. By offering a diverse range of financial services, SoFi attracts a growing customer base. This, in turn, incentivizes more partners to integrate their offerings within SoFi's expanding ecosystem. The result is a robust cross-selling dynamic that enhances overall profitability. Now, SoFi is taking the fight deeper into the fintech trenches. The firm recently extended its $2 billion Loan Platform Business agreement with Fortress Investment Group, focusing on personal loans. This bold move isn't just about scale; it's strategic. SoFi is actively shifting toward fee-based revenues that require less capital and offer more flexibility, signaling a deliberate pivot from traditional lending to a more robust, recurring revenue ecosystem. Meanwhile, SoFi is keeping the innovation pedal floored. It launched two new credit cards — SoFi Everyday Cash Rewards and SoFi Essential Credit Card — cementing its footprint in consumer finance and locking users deeper into its ecosystem. It's not just about more products, it's about smarter ones that boost lifetime value and retention. How Do Zacks Estimates Compare for SOFI & GDOT? The Zacks Consensus Estimate for SOFI's 2025 sales and EPS indicates year-over-year growth of 26% and 87%, respectively. EPS revisions have trended upwards in the past 60 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for GDOT's 2025 sales indicates a 20% year-over-year increase, and EPS indicates a year-over-year decline of 11%. EPS estimates haven't moved in the past 60 days. Image Source: Zacks Investment Research GDOT Undervalued, SOFI Priced for Growth While GDOT appears attractively valued with a forward 12-month P/E of 7.65X versus its median of 10.51X, SoFi's higher forward P/E of 53.2X — above its median of 41.4X — reflects investor confidence in its rapid earnings growth potential. Winner: SoFi Technologies SoFi emerges as the smarter fintech, thanks to its aggressive growth strategy, national bank charter, and expanding product suite. While Green Dot's BaaS model and strong partnerships with giants like Walmart and Apple offer stability, its declining EPS outlook limits momentum. In contrast, SoFi's 2025 projections show explosive year-over-year growth — 26% in sales and 87% in earnings — supported by upward EPS revisions. The launch of innovative credit products and its pivot to fee-based revenue signal a future-focused approach. Despite its high P/E, investor confidence in SoFi's scalable platform and retention-driven ecosystem makes it the clear long-term winner. Both SOFI and GDOT carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Green Dot Corporation (GDOT) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
