Synovus Financial Corp (SNV): A Regional Banking Play with Ken Fisher’s Stamp of Approval

The regional banking sector has faced intense scrutiny in 2025, yet one name continues to stand out: Synovus Financial Corp (SNV). Recently highlighted as one of billionaire investor Ken Fisher’s top finance picks for the year, SNV’s inclusion reflects its compelling mix of resilient earnings, strategic growth initiatives, and valuation discounts relative to peers. Let’s dissect what makes this Southeast-focused bank a potential standout in a challenging environment.

Q1 2025 Results: Strength Amid Volatility

Synovus’ first-quarter earnings underscored its ability to navigate macroeconomic headwinds. Diluted EPS surged 67% year-over-year to $1.30, driven by robust net interest income growth and disciplined cost management. Net interest margin (NIM) expanded to 3.35%, a 7-basis-point sequential improvement, as deposit repricing and lower cash balances offset lingering rate pressures.

Loan performance also shone, with period-end loans rising to $42.65 billion, a sequential increase of $39.7 million. While payoffs moderated growth, core commercial lending—a focus area—grew 16% quarterly, signaling traction in high-margin segments. Deposits, however, dipped slightly to $46.0 billion (excluding brokered funds), reflecting seasonal middle-market outflows.

Crucially, credit quality improved meaningfully. Non-performing loans (NPLs) fell to 0.67% of total loans, with coverage ratios at a robust 185%. Net charge-offs dropped to 0.20%, reinforcing Synovus’ conservative underwriting standards.

Stock Performance: A Dip with Long-Term Appeal

SNV’s stock price has been volatile in 2025, declining 16.66% year-to-date (YTD) to $43.06—a stark contrast to its 17.62% rise in 2024. This pullback, however, has created a valuation inflection point. At 1.6x 2025 tangible book value, SNV trades below regional peers like Truist (TRO) and KeyCorp (KEY), which sit at 1.8x and 1.7x, respectively.

The dividend, yielding 3.55%, adds income appeal, while analyst estimates suggest upside potential. The consensus price target ranges from $46 to $64, implying a 5–49% premium to current levels.

Why Ken Fisher’s Pick Matters

Fisher, renowned for spotting undervalued opportunities, likely sees SNV as a “value trap” turned value play. The bank’s Southeastern footprint—spanning 246 branches in five states—positions it to benefit from regional economic tailwinds, including rising middle-market demand and commercial real estate recovery.

Fisher’s portfolio history also hints at his focus on margin resilience and asset quality—both of which Synovus has demonstrated. With its CET1 ratio at 10.75%, SNV maintains ample capital to weather rate cuts or economic slowdowns, a key consideration in 2025’s uncertain environment.

Risks on the Horizon

No investment is without risks. Synovus faces deposit competition, as rising customer costs and potential Fed rate cuts could pressure margins. Additionally, 17% of commercial clients report reduced business activity due to tariffs and government spending cuts—a red flag in a region reliant on federal contracts.

Synovus’ beta of 1.60 amplifies its sensitivity to broader market swings, making it vulnerable to sector-wide banking selloffs. Still, its $5.99 billion market cap and manageable $60 billion asset base give it agility compared to megabanks.

Conclusion: A Contrarian Opportunity?

Synovus Financial (SNV) checks many boxes for investors seeking regional banking exposure at a discount. Its Q1 results—67% EPS growth, 3.35% NIM, and 0.67% NPL ratio—highlight operational resilience, while its valuation gap versus peers suggests room for re-rating.

With $120 million in buybacks already executed and a 3–5% loan growth target for 2025, SNV is positioned to capitalize on its niche. Even if near-term macro risks persist, the stock’s 3.55% dividend, 1.6x TBV multiple, and Ken Fisher’s imprimatur make it a compelling pick for investors willing to look past short-term noise.

As Fisher often notes, “The market’s most compelling opportunities are found where fear and uncertainty overlap with solid fundamentals.” For SNV, that overlap may just be the catalyst for the “huge upside potential” the billionaire sees.

Data as of April 2025. Past performance does not guarantee future results.