Pinnacle Financial Partners posts third-quarter profit of $364 million, or $2.40 a share
Adjusted diluted earnings per share were $2.69, excluding merger-related expenses, investment securities losses and certain other items.
Key takeaways
- Pinnacle Financial Partners, Inc. (PNFP) reported third-quarter 2026 net income available to common shareholders of $364 million, or $2.40 per diluted share, up from $169 million a year earlier, according to a regulatory filing dated Oct. 21. Adjusted diluted earnings per share were $2.69.
Pinnacle Financial Partners, Inc. (PNFP) reported third-quarter 2026 net income available to common shareholders of $364 million, or $2.40 per diluted share, the company said Wednesday in a press release attached to a regulatory filing. The results cover the first year of the combined company, formed when its merger with Synovus Financial Corp. closed on Jan. 1, 2026.
Excluding merger-related expenses, investment securities losses and certain other items, adjusted net income available to common shareholders was $409 million, or $2.69 per diluted share.
Here's how the company did:
- Net income available to common shareholders: $364 million, vs. $169 million a year earlier
- Diluted earnings per share: $2.40, vs. $2.19 a year earlier
- Adjusted diluted earnings per share: $2.69, vs. $2.27 a year earlier
- Total revenue: $1,312 million, vs. $544 million a year earlier
- Net interest income: $986 million, vs. $397 million a year earlier
The company said year-over-year comparisons are heavily affected by the merger, given the size of the acquired balance sheet and the effect of purchase accounting. Reported results reflect the combined company in the second and third quarters of 2026 and legacy Pinnacle in prior periods.
“Three quarters into our first year as a combined company, the pattern that built Pinnacle is intact: consistent, repeatable performance, quarter after quarter,” Pinnacle President and CEO Kevin Blair said. “The merger changed our size, not how we perform.”
Pinnacle added 96 experienced revenue producers in the third quarter, compared with 74 in the second quarter, bringing the year-to-date total to 222. Blair also said, “Retention and recruiting are both ahead of plan, and clients remain loyal and committed to doing more business with us.”
Net interest income and margin
Net interest income grew 3% to $986 million from $956 million in the second quarter. Against a year earlier, when it was $397 million, the figure rose 148%.
The net interest margin declined 4 basis points to 3.40% from 3.44% in the second quarter. The company said the decline was driven primarily by increasing deposit costs and the ongoing, wholesale-funded liquidity build, partially offset by rising securities and loan yields.
Period-end loans were $89.8 billion at Sept. 30, up $1.7 billion or 2% from the prior quarter. The company said most of the loan growth was in commercial and industrial credits.
Period-end deposits were $103 billion, up $2.1 billion or 2% from the prior quarter. The company said third-quarter deposit growth reflects Pinnacle's historical seasonal growth pattern.
Fee income and expenses
Non-interest revenue was $326 million, and adjusted non-interest revenue was $323 million. Linked-quarter adjusted non-interest revenue rose $53 million, driven by higher income from the equity-method investment in Bankers Healthcare Group, or BHG, and by a $23 million gain tied to the payoff of an equipment lease.
Non-interest expense was $749 million. Adjusted non-interest expense was $690 million, up 4% from the second quarter, with higher employment expense from a true-up to the annual incentive accrual and accelerated revenue producer hiring.
The efficiency ratio-TE, a measure of expenses as a share of revenue, was 56.6%. The adjusted tangible efficiency ratio was 48.9%.
Full-time equivalent headcount was 8,649, up 1% from the second quarter. The company said geography and specialty revenue producer hiring accounted for most of that increase.
Credit quality and capital
The provision for credit losses was $86 million, up from $63 million in the second quarter and $32 million a year earlier. The company said the change in the allowance was driven largely by a more adverse macroeconomic outlook and continued loan growth.
The net charge-off ratio was 0.23%, compared with 0.22% in the second quarter. The non-performing asset ratio was 0.50%, flat from the prior quarter.
The preliminary Common Equity Tier 1 ratio ended the quarter at 10.01%, up from 9.93% in the second quarter. The company's CET1 objective is 10.25%, and it said no share repurchases are expected in 2026.
2026 outlook
The company updated its 2026 outlook in slides furnished with the release. It now assumes adjusted non-interest revenue of $1.175 billion to $1.185 billion, with BHG investment income now forecast at $150 million to $160 million.
The company said its 2026 revenue producer hiring goal is 250 or more, up from a previous goal of 225 to 250. The slides give the following 2026 ranges:
| Metric | 2026 range |
|---|---|
| Period-end loans, excluding loan mark | $91.0 billion to $93.0 billion |
| Period-end total deposits | $106.5 billion to $108.5 billion |
| Adjusted revenue (TE) | $5.00 billion to $5.20 billion |
| Adjusted non-interest revenue | $1.175 billion to $1.185 billion |
| Adjusted non-interest expense | $2.675 billion to $2.775 billion |
| Net charge-offs, average loans | 0.20% to 0.25% |
| Adjusted effective tax rate | 20% to 21% |
| Full-year net interest margin | 3.44% to 3.46% |
The company expects fourth-quarter net interest income (TE) of $1,015 million to $1,035 million. Its full-year margin assumption includes minimal expected impact from a December rate hike.
Pinnacle will host a conference call and webcast on Oct. 22 at 8 a.m. ET to discuss the third-quarter results.