Synovus Q4 2024: Navigating Growth Amid Loan Payoffs and Capital Optimization

Revenue and Earnings Growth:
- Synovus reported adjusted revenue increased by 3% sequentially and 3% year-over-year for Q4 2024.
- The increase was driven by a 3% rise in net interest income and strategic growth in noninterest revenue, supported by strong core deposit and treasury management activities.

Loan and Deposit Dynamics:
- End-of-period loan balances ended Q4 down 1% sequentially and 2% year-over-year, influenced by significant payoffs.
- Core deposit balances grew 3% sequentially, supported by public fund seasonality and growth in money market and operating deposits, which were primary drivers of the deposit growth.

Credit Quality and Capital Ratios:
- Net charge-offs were 26 basis points in Q4, at the lower end of the expected range, and credit metrics remained stable with nonperforming loans flat.
- The preliminary common equity Tier 1 ratio improved to 10.84%, reflecting solid earnings accretion and capital optimization exercises.

Capital Markets and Fee Income:
- Capital markets revenue grew about 13% in 2024, driven by diversification into syndicated lending, derivatives, and other fee income sources, despite a challenging market environment.
- The growth was supported by successful integration of the GreenSky relationship and increased penetration into client bases, forming a strategic and sustainable revenue source.