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Business Wire
6 days ago
- Business
- Business Wire
Synovus announces earnings for second quarter 2025
Net income available to common shareholders was $206.3 million, or $1.48 per diluted share, compared to $183.7 million, or $1.30, in first quarter 2025 and $(23.7) million, or $(0.16), in second quarter 2024. 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.
Hindustan Times
03-07-2025
- Business
- Hindustan Times
Mortgage rates fall again in US: 15-year stands at 5.57%, 30-year at 6.61%
The current 30-year fixed mortgage rate dropped by 0.65 % last week to 6.61%, according to the Mortgage Research Center. The average interest rate for a 15-year fixed-rate mortgage also declined, falling 0.08% to 5.57% over the same period, according to a Forbes report. Mortgage rates in US: A jumbo loan is a mortgage that's bigger than the loan limit set by the FHFA for that area.(Pexels) This means that a $100,000 loan with an interest rate of 5.57% would require a monthly payment of about $821, excluding taxes and insurance, per the report. Meanwhile, the total interest costs over the life of a 15-year mortgage would be around $48,224. Also Read: Silver prices in US today: Holding above $36 per ounce, may go higher soon Jumbo mortgage rate The average rate for a 30-year fixed jumbo mortgage is 6.94%. Last week, it was 6.95%. A jumbo loan is a mortgage that is bigger than the loan limit set by the FHFA for that area. Mortgage rate trends in 2025 Rates dropped somewhat after spring 2024, then started rising again in October. Even with the Federal Reserve cutting its Fed Funds rate in September, November, and December 2024, rates increased. Rates began to decrease again in January 2025, but mortgage experts say do not expect rates to fall significantly more anytime soon. Also Read: Gold price today in US: $3,352 steady ahead of June 2025 jobs report What affects mortgage rates? Generally, mortgage rates are correlated with US Treasury bond yields. When yields fall, mortgage rates fall too. The Fed's actions also play a part. If prices increase or the economy declines, the Fed could reduce interest rates. An example of this happened during the COVID-19 pandemic, when rates hit record lows. With that said, there is no widespread expectation for another significant drop in mortgage rates going forward. But should the inflation decrease or the economy slow further, lower rates can be expected, per the report.
Yahoo
01-07-2025
- Business
- Yahoo
Veteran analyst sends blunt message on what's next for stocks
Veteran analyst sends blunt message on what's next for stocks originally appeared on TheStreet. Stocks fell significantly after President Donald Trump announced widespread tariffs on April 2. The so-called 'Liberation Day' announcement consisted of harsher-than-expected tariff rates, causing investors to reset outlooks for the U.S. economy and corporate earnings. The stock market's near-bear market tumble didn't last long. President Trump reversed course days later, announcing a 90-day pause on most of the Liberation Day tariffs to clear the way for trade negotiations. Sensing the worst may be behind us, investors went bargain hunting, buying the rally has since been extraordinary, particularly given the risk of a slowdown in the US economy remains. Sticky inflation, job losses, and wounded confidence still mean that stagflation or an outright recession is possible. This would be bad for stocks, given that a healthy economy is key to sales and profit growth, which are key to stock market returns. One analyst who wasn't surprised by them is Fundstrat's Tom Lee. Lee has been a Wall Street pro since the 1990s, and he correctly predicted after Liberation Day that stocks would likely find their footing and head higher. Now that Lee has been proven correct, what does he think will happen next for the stock market? This week, he updated his outlook, offering a blunt prediction likely to catch people's attention. The Federal Reserve's dual mandate is targeting low inflation and employment. Unfortunately, those goals are often at odds, causing the Fed to fall behind the curve when setting monetary policy. For example, increasing interest rates slows economic activity and reduces inflation. However, as we've seen lately, they can also cause 2021, Fed Chairman Jerome Powell mistakenly predicted inflation would be transitory. Instead, inflation took hold and accelerated to 8%, prompting the Fed to embrace the most hawkish interest rate hikes since then-Fed Chairman Paul Volcker battled inflation in the early 1980s. Altogether, the Fed increased its Fed Funds Rate by 5.25% to lower inflation. The rate increases have worked, given that inflation has retreated below 3%. However, they've damaged the job market, and inflation progress has stalled. The Bureau of Labor Statistics' latest report shows the unemployment rate has increased to 4.2% from a low of 3.4% in 2023. Meanwhile, the Consumer Price Index for May showed inflation at 2.4%, the same as last September. And over 696,000 Americans have lost their jobs this year through May, according to Challenger, Gray, & Christmas, partly because of Department of Government Efficiency (DOGE) job cuts. The number of layoffs this year has grown a jaw-dropping 80% year over year. It's anyone's guess what happens next to the economy. Yet stocks have looked beyond the fact that inflation progress has slowed and unemployment is rising. Instead, investors seem to believe that markets will view any more bad news as good news, because higher unemployment or weaker economic growth will force the Fed to cut rates. We've already seen evidence that may happen. The Fed cut interest rates by 1% late last year to shore up the jobs market, citing its progress on inflation. While the Fed has since moved to the sidelines, waiting to see if tariffs cause inflation to increase this year, many economists expect that pause to prove temporary. The CME's closely-watched FedWatch tool estimates a rate cut as soon as September, and major Wall Street firm Morgan Stanley forecasts seven rate cuts in 2026 as the Fed falls behind the curve in battling unemployment. Tom Lee's long-time Wall Street experience means he's navigated more than his share of good and bad markets, including the Internet boom and bust, the Great Recession, Covid, and the 2002 bear market. That experience helped him accurately predict the bull market in 2023 and the stock market's recent bottom in April. More Experts: Legendary fund manager sends blunt 9-word message on stock market tumble Major analyst unveils surprising gold price forecast for 2026 Jim Cramer sends strong message on Nvidia stock at all-time highs Lee and his team think the tank has more potential gas to fuel higher stock prices. In a note to investors this week, Lee's head of technical analysis, Mark Newton, said, "As always, trying to time stocks with economic data is ill-advised, and the push to new highs by SPX has momentum and signs of broad-based participation that makes it tough to immediately fade.' Many, including Newton, initially thought stocks would have a tough time once the S&P 500 reached its February highs. However, Newton has become more encouraged given that the rally has broadened to include stocks in other important sectors besides technology, including financials. "Historically, we have seen technology outperform, but now we're actually seeing financials break out, which, of course, is the second largest sector within the S&P at 14%. Over the last week, when you look at what's outperformed, it's been financials up over 3% – a very, very good sign to me," said Newton. Lee pointed out that while retail investors have embraced the 'buy the dip' mentality so far, institutional investors have remained more cautious, keeping more dry powder on the sidelines than they might have otherwise. The possibility that professional money managers accelerate buying to avoid falling too far behind the benchmark S&P 500 index may suggest that the path of least resistance for stocks over time will remain higher. 'We are at the start of a new bull market,' said Lee analyst sends blunt message on what's next for stocks first appeared on TheStreet on Jul 1, 2025 This story was originally reported by TheStreet on Jul 1, 2025, where it first appeared.
Yahoo
10-06-2025
- Business
- Yahoo
Should you own Utility stocks going forward? Jefferies weighs in
-- In a note to clients Tuesday, Jefferies analysts presented a mixed view on Utility stocks, maintaining an Overweight rating in large-cap Utilities but an Underweight rating in small-cap Utilities. While sentiment toward the sector remains strong, with inflows into ETFs, Jefferies' strategy team holds diverging opinions based on market capitalization. Sentiment for Utilities has been "very strong and provides a nice tailwind for the group," partly because "many of the stocks will help with the AI build out." Despite the sector's lower liquidity, Jefferies notes that "flows are currently in the sweet spot, not too hot and not too cold." Addressing the "higher for longer" interest rate environment, Jefferies believes it's "not really" a "death knell for this sector." The firm's forecast suggests rates will hover close to current levels, with three Fed Funds cuts expected in 2025 starting in September. While Utilities in small caps are more tied to rates, Jefferies notes that the correlation is weak in large caps. Interestingly, when the Fed funds rate falls, Utilities typically lag, which "has not been the case in this rate reduction environment." However, Jefferies points out that if investors are seeking yield, "the dividend yield is below both the 10-year and the 2-year," suggesting "one can find cheaper dividend-paying stocks elsewhere." Valuations are also said to be a concern, with Utilities viewed as "expensive in both size segments." Jefferies' overall view leans towards Overweight large-cap utilities due to attractive valuations and strong earnings visibility, while being Underweight in small caps where Utilities are among the "most-expensive groups and does not provide enough economic torque." Related articles Should you own Utility stocks going forward? Jefferies weighs in Snap to launch consumer smart glasses in 2025, rivaling Meta BlackRock portfolio managers 'laser focused' on capturing market opportunities
Yahoo
04-06-2025
- Business
- Yahoo
Fed's hand may be forced as disinflation builds, Macquarie says
-- At its meeting last month, the Federal Reserve delivered a hawkish pause as it flagged growing risks of higher inflation and slower growth, but the trend of disinflation is likely to force the Fed's hand into a more dovish stance at the June meeting, paving the way for a rate cut this year. 'We think that the Fed will lean toward a more 'dovish' message on June 17 than it did on May 7, and the prospect for a rate cut in 2025 has strengthened a bit,' Macquarie strategists wrote, pointing to the recent decline in US inflation and signs of a weakening labor market. While the April JOLTS report showed a modest pick-up in job openings, Macquarie cautions that other indicators—including today's weak ADP report and a drop in private-sector quit rates—signal the US labor market is losing momentum. 'The improvement in April openings seemed to contradict the poorer hiring signals from the Fed's recent regional surveys, the decline in job security measures in consumer surveys, and even third-party surveys of job openings,' the strategists said, adding that the ADP report showed a mere 37,000 in net hiring. Macquarie warns not to put too much weight on the JOLTS report, noting, 'we shouldn't take the JOLTS report from yesterday too seriously, lest we be surprised by weakness in this Friday's May employment report.' For the Fed, the unemployment rate remains the 'paramount single driver' for its disposition toward rates, and any break above the recent 4.1%-4.2% range could be pivotal. On the inflation front, Macquarie sees underlying price trends in the US as 'again disinflationary,' especially after the latest PCE inflation report. 'We think that with the June 18 FOMC meeting, some of the Fed's caution about cutting the Fed Funds rate target will start to fade, as the Fed considers that—if we abstract from the tariffs—underlying price trends in the US are again disinflationary,' they wrote. Tighter credit conditions are also weighing on the outlook, as banks continue to tighten lending terms amid policy uncertainty and mark-to-market losses on Treasury holdings. 'Much of this, we think, is being driven by a suppression of consumer credit, as banks tighten lending terms,' Macquarie said. Related articles Fed's hand may be forced as disinflation builds, Macquarie says Bond yields fall as rate cut bets rise 'Illegal' metal tariffs won't receive retaliation yet, says Carney
