PNFP earnings analysis
What we found in PNFP's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.07
- Segment
- Banking: Q2 net interest income $807 million; total non-interest revenue $122 million; income before tax $561 million.
- Segment
- Wealth: Q2 net interest income $10 million; total non-interest revenue $80 million; income before tax $32 million.
- Segment
- Treasury and Corporate Other: Q2 net interest income $139 million; total non-interest revenue $45 million; loss before tax $174 million.
What they said about what is next.
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.
The filing reads about the same as the one before it.
What came before.
- 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…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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