Synovus Financial Corp. (NYSE: SNV) today reported financial results for the quarter ended Sept. 30, 2025.

"Synovus 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.”

Third Quarter 2025 Highlights

• Net income available to common shareholders was $185.6 million, or $1.33 per diluted share, compared to $206.3 million, or $1.48, in second quarter 2025 and $169.6 million, or $1.18, in third quarter 2024.

• Adjusted net income available to common shareholders was $203.9 million, or $1.46 per diluted share, compared to $206.4 million, or $1.48, in second quarter 2025 and $177.1 million, or $1.23, in third quarter 2024.

• Pre-provision net revenue was $266.7 million, which declined 4% from second quarter 2025 and increased 6% year over year. Adjusted pre-provision net revenue of $292.6 million increased 5% on a linked quarter basis and rose 12% year over year.

• Net interest income grew $15.1 million, or 3%, from the second quarter and $34.0 million, or 8%, compared to third quarter 2024. 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.

• Non-interest revenue of $140.7 million increased $6.6 million, or 5%, sequentially and was up $16.7 million, or 13%, compared to third quarter 2024. Adjusted non-interest revenue of $136.4 million rose $5.5 million, or 4%, sequentially and increased $14.4 million, or 12%, from third quarter 2024. Linked quarter growth was driven by wealth revenue and capital markets income, while year-over-year growth was more broad-based with higher core banking fees, capital markets income and wealth revenue.

• Non-interest expense and adjusted non-interest expense were $348.7 million and $320.2 million, respectively. Non-interest expense increased 10% sequentially and 11% from third quarter 2024. Adjusted non-interest expense increased 3% from second quarter 2025 and 6% from a year ago. Merger-related expense in the third quarter was $23.8 million, mostly related to accounting, investment banking, consulting and legal fees.

• Credit performance remained strong. The non-performing asset ratio improved to 0.53% compared to 0.59% in second quarter 2025, while the net charge-off ratio for third quarter 2025 was 0.14%, down from 0.17% in the prior quarter. Total past due loans were 0.10% of total loans outstanding compared to 0.24% in second quarter of 2025.

• Provision for credit losses declined 7% year over year, but increased sequentially due to net growth, economic conditions and qualitative factors, offset by improved portfolio performance. The allowance for credit losses ratio (to loans) of 1.19% increased from 1.18% in the prior quarter, while our reserve for credit losses coverage of non-performing loans rose to 249% in third quarter 2025 from 200% in the prior quarter.

• The preliminary Common Equity Tier 1 (CET1) ratio ended third quarter 2025 at 11.24%.

Pinnacle Financial Partners-Synovus Financial Corp. Pending Merger

• We continue to expect our pending merger with Pinnacle to close in first quarter 2026, subject to the receipt of required regulatory approvals, approval by Pinnacle and Synovus shareholders and the satisfaction of other customary closing conditions. The Pinnacle and Synovus teams have demonstrated significant progress in our merger integration planning. The entire post-closing executive leadership team has been finalized and communicated and all headcount-related decisions and employee communications are expected to be completed in the fourth quarter. We have communicated retention packages for key employees at both Pinnacle and Synovus. There have been significant technology stack decisions made as well. Our integration planning management offices, which were established in August, are working together diligently to complete the required work streams that are needed before and after the closing of the transaction, including our Large Financial Institution readiness.

• Our merger-related financial assumptions that we communicated in July are unchanged, but we now expect the company’s pro forma CET1 ratio to be approximately 10.1% at the closing of the merger as a result of a more favorable rate environment and strong third quarter 2025 capital generation. We plan to issue 2026 pro forma company guidance after the merger closes early next year.

Third Quarter Summary

Balance Sheet