Synovus Financial (SNV) delivered a solid Q3, driven by stronger spread and fee revenue, a lower provision, and progress on merger planning with Pinnacle, RBC Capital Markets said.

Core earnings per share were $1.46, above the $1.35 consensus, while reported EPS was $1.33 after roughly $0.13 of merger and other one-time items, the brokerage said in a note Thursday.

The firm noted revenue momentum, with net interest income rising to $474.7 million and adjusted fee income about $136 million, alongside improving asset quality as nonperforming assets declined and net charge-offs eased to 14 basis points.

Management fine-tuned its 2025 guidance to reflect about 4.5% loan growth, 0.5% deposit growth, roughly 6.5% adjusted revenue growth, and about 2.5% expense growth, according to the note.

RBC raised its 2025 EPS to $5.60 from $5.45, kept 2026 EPS at $5.70, cut its 12-month price target to $58 from $65, and maintained an outperform rating on Synovus.

Shares of Synovus Financial were up more than 2% in recent Friday trading.

Price: 45.06, Change: +0.93, Percent Change: +2.11