As Synovus Preps for a Major Merger, One Fund Buys Up $7.5 Million in Stock

New York City-based Kintayl Capital initiated a new position in Synovus Financial Corp. (NYSE:SNV), adding 152,144 shares valued at approximately $7.5 million, as disclosed on November 14.

What Happened

According to a filing with the Securities and Exchange Commission dated November 14, Kintayl Capital LP reported initiating a new position in Synovus Financial Corp. The fund acquired 152,144 shares, bringing the holding’s quarter-end value to $7.5 million. This new stake accounts for 4.6% of the fund’s $162.2 million in reportable U.S. equity holdings, with Synovus now one of 37 positions in the portfolio.

What Else to Know

Top five holdings after the filing:

• NYSE: SAND: $11.6 million (8% of AUM)
• NASDAQ: LBRDK: $11.5 million (7.9% of AUM)
• NYSE: NSC: $11.4 million (7.8% of AUM)
• NYSE: IPG: $10.3 million (7.1% of AUM)
• NASDAQ: CORZ: $10.2 million (7% of AUM)

As of Thursday, shares of Synovus Financial Corp. were priced at $50.18, down 10% over the past year and well underperforming the S&P 500's 13% gain in the same period.

Company Overview

Company Snapshot

• Synovus Financial offers commercial and retail banking products, including loans, deposit accounts, treasury management, asset management, and brokerage services.
• The company generates revenue primarily through net interest income from lending activities, complemented by fee income from financial management and capital markets services.
• It serves commercial clients, small and medium-sized businesses, and retail consumers across the Southeastern United States.

Synovus Financial Corp. is a regional bank holding company with a diversified portfolio of financial services, operating through a network of branches and ATMs concentrated in the Southeast. The company leverages a balanced approach between traditional banking and specialized financial services to drive growth and maintain customer relationships. Its scale and regional focus provide a competitive edge in serving both commercial and retail clients with tailored solutions.

Foolish Take

Kintayl's fresh stake in Synovus arrives right when the bank is preparing for a meaningful shift in scale. Regulators approved its merger with Pinnacle Financial Partners late last month, and the merger is now expected to close January 1, positioning Synovus for stronger regional density, deeper commercial relationships, and a more robust funding base—factors that could reshape profitability over the next several years. Kintayl’s entry ahead of that integration suggests confidence in the bank’s ability to convert merger-driven scale into returns despite a choppy share performance this year.

According to Kintayl Capital’s November 14 SEC filing, the fund initiated a $7.5 million position in the third quarter, representing 4.6% of its reportable U.S. equity book. Financially, the firm's net income for the third quarter came in at $185.6 million, up from $169.6 million last year, while net interest income grew 8%.

Shares remain down 10% over the past year, but for long-term investors, the real test is whether the Pinnacle combination accelerates earnings growth, strengthens deposit mix, and supports more durable returns on equity.

Glossary

13F reportable assets: U.S. equity holdings that institutional investment managers must disclose quarterly to the SEC on Form 13F.
Assets under management (AUM): The total market value of investments a fund or firm manages on behalf of clients.
Position: The amount of a particular security or asset held in a portfolio by an investor or fund.
Portfolio: A collection of financial assets, such as stocks and bonds, held by an investor or fund.
Dividend yield: A financial ratio showing how much a company pays in dividends each year relative to its share price.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Net interest income: The difference between interest earned on assets (like loans) and interest paid on liabilities (like deposits).
Treasury management: Services provided by banks to help organizations manage cash flow, liquidity, and financial risk.
Asset management: Professional management of investments such as stocks, bonds, and other assets for clients.
Brokerage services: Services that facilitate the buying and selling of securities for clients.
Capital markets services: Financial services related to raising capital, trading securities, and managing investments in public markets.
Regional bank holding company: A company that owns and controls one or more banks operating primarily within a specific geographic region.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.