10-Q · May 5, 2026
Pinnacle Financial Partners (PNFP) reported a strong Q1 2026 performance with significant increases in revenue and net interest income, largely driven by the recent merger with Synovus. Total revenue reached $1,217…
Earnings analysis · 10-Q
PNFP earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
PNFP's first full post-merger Q2 showed $1.203 billion of revenue, up 138% year over year, and reported EPS of $2.07, up from $2.00; adjusted EPS was $2.50. Results benefited materially from the Synovus combination and…
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PNFP's first full post-merger Q2 showed $1.203 billion of revenue, up 138% year over year, and reported EPS of $2.07, up from $2.00; adjusted EPS was $2.50. Results benefited materially from the Synovus combination and purchase-accounting accretion, with 3.44% NIM and continued sequential organic loan and deposit growth. Offsetting factors are substantial $326 million year-to-date merger costs, higher absolute problem-credit balances, lower CET1, and a $29 million securities-repositioning loss. Management maintained its 2026 outlook, including $5.0-$5.2 billion of adjusted revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $2.07
What stood out
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Revenue scales sharply after Synovus merger
Q2 total revenue was $1.203 billion, up $698 million (138%) year over year; it was down $14 million from the implied $1.217 billion in Q1 2026. Net interest income rose 151% year over year to $956 million and increased $23 million sequentially.
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Sequential earnings rebound despite merger costs
Reported diluted EPS rose to $2.07 from $2.00 in Q2 2025 and from an implied $0.89 in Q1 2026. Adjusted diluted EPS was $2.50, while Q2 net income available to common shareholders was $313 million, up 101% year over year.
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Net interest margin expanded to 3.44%
Net interest margin expanded 21 bp year over year to 3.44% in Q2, versus 3.23%. Management cited purchase-accounting accretion, fixed-asset repricing and securities repositioning, partly offset by lower SOFR and seasonal wholesale-funding reliance.
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Banking and Wealth fee businesses expanded
Banking segment Q2 income before tax was $561 million versus $219 million a year ago, while Wealth income before tax increased to $32 million from $10 million. Wealth management revenue grew to $85 million from $32 million and core banking fees to $93 million from $32 million.
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Organic loan and deposit growth continued
Loans reached $88.076 billion, up $2.879 billion sequentially, and deposits rose $795 million sequentially to $100.898 billion. Liquidity included $7.651 billion of cash/cash equivalents and approximately $36.3 billion of contingent liquidity sources.
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Strong operating cash generation and low capex
Six-month operating cash flow was $1.016 billion; less $38 million of premises, equipment and software investment, indicative free cash flow was $978 million. Capex represented 3.7% of operating cash flow.
What to watch
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Merger costs and purchase-accounting uncertainty
Merger and integration remain a material drag: Q2 merger-related expense was $51 million and six-month expense was $326 million. Purchase accounting remains preliminary, with $1.630 billion of preliminary goodwill and valuations still subject to measurement-period adjustment.
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Problem-credit balances rose after combination
Credit pressure increased in absolute dollars: non-performing loans were $415 million versus $133 million at December 31, 2025, while criticized/classified loans were $1.812 billion versus $679 million. Management said quarterly NPAs were affected by two senior-housing relationships.
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Rate and securities-portfolio risk persists
Securities repositioning produced a $29 million Q2 realized net loss, and AFS securities carried $281 million of gross unrealized losses on $15.583 billion of securities in loss positions. NII sensitivity projects a 2.8% decline under an immediate 200-bp rate decrease.
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Lower capital ratios and enhanced oversight
Capital ratios declined following the merger: CET1 was 9.93% at June 30, 2026, down from 10.88% at December 31, 2025, while the tangible common equity ratio fell to 7.65% from 8.86%. The company is now above the $100 billion threshold and classified as a Category IV large financial institution.
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No new risk-factor changes; litigation range remains
The filing states there were no material changes to risk factors disclosed in the March 31, 2026 10-Q. Separately, potential litigation losses remain estimated at $0 million to $30 million above accrued amounts.
Management's outlook
Management said 2026 fundamental guidance was unchanged from January. It expects 9%-11% end-of-period loan growth, 8%-10% deposit growth, adjusted revenue of $5.0-$5.2 billion, adjusted non-interest expense of $2.675-$2.775 billion, a 0.20%-0.25% annualized net-charge-off ratio, a 20%-21% adjusted tax rate, and 3.44%-3.47% NIM; outlook assumes stable rates/economy and no FOMC action through 2026.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.