Synovus Financial Corp. announced diluted earnings per share of $1.30 for the first quarter ended March 31, 2025, marking a 67% increase from $0.78 in the first quarter of 2024. Adjusted diluted earnings per share also reached $1.30, up from $0.79 in the prior year, driven by net interest margin expansion and lower credit losses.
Net interest income for the quarter was $454.38 million, showing an 8% increase year-over-year, with the net interest margin expanding by 7 basis points quarter-over-quarter to 3.35%. Non-interest expense decreased by 5% year-over-year to $308.03 million, reflecting excellent expense management.
Credit quality improved significantly, with the provision for credit losses decreasing by 80% year-over-year to $10.92 million, and net charge-offs declining to 0.20%, the lowest level in over three years. The Common Equity Tier 1 (CET1) ratio stood at 10.75%, demonstrating a resilient balance sheet.
Management's updated guidance for 2025 anticipates continued loan and core deposit growth of 3% to 5%, stable credit performance, and adjusted non-interest expense growth of 2% to 4%. This outlook assumes more moderate growth conditions and the possibility of four Fed funds rate cuts throughout the remainder of 2025.
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