Pinnacle Earns $2.40 A Share In Third Quarter, Up From $2.19, As Loans Reach $89.8 Billion
The bank's third quarter combined with Synovus brought $364 million of profit to common shareholders and a slightly thinner interest margin.
Pinnacle Financial Partners earned $364 million for common shareholders in the third quarter, or $2.40 per diluted share, against $2.19 a year earlier, according to an 8-K filed Wednesday. Adjusted earnings, which leave out merger-related expenses, investment securities losses and certain other items, were $409 million, or $2.69 per share, versus $2.27.
What the results show
Net interest income grew 3% to $986 million. Non-interest revenue was $326 million, and the net interest margin fell 4 basis points (0.04 percentage points) from the prior quarter to 3.40%. The company blamed rising deposit costs and a wholesale-funded liquidity build, partly offset by higher securities and loan yields.
Period-end loans were $89.8 billion, up $1.7 billion or 2% from the prior quarter, mostly in commercial and industrial credits. Deposits were $103 billion, up $2.1 billion or 2%. Pinnacle added 96 experienced revenue producers, against 74 in the second quarter, for 222 so far this year.
The efficiency ratio, which measures expenses against revenue, improved to 56.6% from 59.4% in the second quarter. The adjusted tangible version was 48.9%. Credit held steady: the net charge-off ratio was 0.23% versus 0.22%, and the non-performing asset ratio stayed at 0.50%.
CEO Kevin Blair said "The merger changed our size, not how we perform."
What it changes
The merger of Pinnacle and Synovus closed on January 1, 2026. Reported results show the combined company for the first three quarters of 2026 and legacy Pinnacle before that, so the company says year-over-year comparisons are significantly distorted by the larger balance sheet and purchase accounting.
The slide deck puts the preliminary common equity capital ratio at 10.01%, up from 9.93% in the second quarter, and says no share repurchases are expected in 2026. Non-interest revenue rose partly on higher income from the BHG equity investment and a $23 million gain from an equipment lease payoff.
What to watch
Pinnacle holds its earnings call and webcast at 8 a.m. ET on Thursday. The deck outlines fourth-quarter taxable-equivalent net interest income of $1,015 million to $1,035 million, and a net interest margin of 3.40% to 3.45%.
The deck leaves 2026 guidance unchanged, including period-end loans of $91.0 billion to $93.0 billion.
Sources
- 8-K Filing — Pinnacle Financial Partners, Inc. (PNFP) — SEC EDGAR
- Exhibit pnfp_09302026xex991xfiling.htm — Pinnacle Financial Partners, Inc. 8-K exhibit — SEC EDGAR
- Exhibit pnfp_09302026xex992filin.htm — Pinnacle Financial Partners, Inc. 8-K exhibit — SEC EDGAR
- Countdown to Pinnacle Financial (PNFP) Q3 Earnings: A Look at Estimates Beyond Revenue and EPS — Yahoo Finance
- Kevin Blair reflects on first nine months leading Pinnacle Financial Partners - Nashville Business Journal — bizjournals.com
