Core Viewpoint - Pinnacle Financial (PNFP) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often adjust their valuations based on changes in earnings estimates, leading to significant stock price movements as they buy or sell shares [4]. Business Outlook - The upgrade reflects an improvement in Pinnacle Financial's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. - For the fiscal year ending December 2025, Pinnacle Financial is expected to earn $7.94 per share, with a 3.2% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. - Pinnacle Financial's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

PART I – Financial Information This part provides the unaudited consolidated financial statements and detailed notes for Pinnacle Financial Partners, Inc. and its subsidiaries [Item 1. Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements of Pinnacle Financial Partners, Inc. and its subsidiaries, along with detailed accounting notes [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) [Consolidated Statements of Shareholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) | Metric | June 30, **2025** (in thousands) | December 31, **2024** (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | **Assets** | | | | Total assets | **$54,801,451** | **$52,589,449** | | Loans, net | **$36,683,039** | **$35,071,282** | | Cash and cash equivalents | **$2,990,004** | **$3,435,925** | | **Liabilities** | | | | Total deposits | **$44,999,244** | **$42,842,992** | | Total liabilities | **$48,164,214** | **$46,157,568** | | **Shareholders' Equity** | | | | Total shareholders' equity | **$6,637,237** | **$6,431,881** | | Metric | Three months ended June 30, **2025** (in thousands) | Three months ended June 30, **2024** (in thousands) | Six months ended June 30, **2025** (in thousands) | Six months ended June 30, **2024** (in thousands) | | :----------------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Total interest income | **$694,770** | **$668,390** | **$1,362,930** | **$1,318,873** | | Total interest expense | **$315,237** | **$336,128** | **$618,969** | **$668,577** | | Net interest income | **$379,533** | **$332,262** | **$743,961** | **$650,296** | | Provision for credit losses | **$24,245** | **$30,159** | **$41,205** | **$64,656** | | Net income | **$158,540** | **$53,162** | **$298,948** | **$177,106** | | Diluted net income per common share | **$2.00** | **$0.64** | **$3.77** | **$2.21** | - Pinnacle Financial **entered into** a Merger Agreement with Synovus Financial Corp. on **July 24, 2025**, where both companies will merge into a newly formed entity, Newco, which will be named Pinnacle Financial Partners, Inc. This merger is **subject to shareholder and regulatory approvals**[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes the company's financial performance and condition, highlighting net income and EPS growth, loan growth, and the impact of the Synovus merger [Overview](index=43&type=section&id=Overview) [Selected Financial Information](index=46&type=section&id=Selected%20Financial%20Information) [Results of Operations](index=46&type=section&id=Results%20of%20Operations) [Financial Condition](index=54&type=section&id=Financial%20Condition) [Market and Liquidity Risk Management](index=62&type=section&id=Market%20and%20Liquidity%20Risk%20Management) [Recently Adopted Accounting Pronouncements](index=66&type=section&id=Recently%20Adopted%20Accounting%20Pronouncements) | Metric | 3 Months Ended June 30, **2025** | 3 Months Ended June 30, **2024** | YoY Change (%) | | :----------------------------------- | :--------------------------- | :--------------------------- | :------------- | | Diluted net income per common share | **$2.00** | **$0.64** | **>100.0%** | | Net interest income | **$379.5 million** | **$332.3 million** | **14.2%** | | Provision for credit losses | **$24.2 million** | **$30.2 million** | **(19.6%)** | | Noninterest income | **$125.5 million** | **$34.3 million** | **>100.0%** | | Noninterest expense | **$286.4 million** | **$271.4 million** | **5.5%** | | Efficiency ratio | **56.7%** | **74.0%** | **-17.3 pp** | | Effective tax rate | **18.4%** | **18.2%** | **+0.2 pp** | | Metric | 6 Months Ended June 30, **2025** | 6 Months Ended June 30, **2024** | YoY Change (%) | | :----------------------------------- | :--------------------------- | :--------------------------- | :------------- | | Diluted net income per common share | **$3.77** | **$2.21** | **70.6%** | | Net interest income | **$744.0 million** | **$650.3 million** | **14.4%** | | Provision for credit losses | **$41.2 million** | **$64.7 million** | **(36.3%)** | | Noninterest income | **$223.9 million** | **$144.4 million** | **55.1%** | | Noninterest expense | **$561.9 million** | **$513.8 million** | **9.4%** | | Efficiency ratio | **58.1%** | **64.6%** | **-6.5 pp** | | Effective tax rate | **18.0%** | **18.1%** | **-0.1 pp** | - Loans **increased by** **$1.6 billion** (**4.6%**) to **$37.1 billion** at **June 30, 2025**, from **$35.5 billion** at **December 31, 2024**, driven by **organic loan growth**, **increased relationship advisors**, and **specialty lending groups**. Total deposits **rose by** **$2.2 billion** (**5.0%**) to **$45.0 billion**[151](index=151&type=chunk)[158](index=158&type=chunk) - The company's net interest margin expanded to **3.23%** (3 months) and **3.22%** (6 months) in **2025**, **up from** **3.14%** and **3.09%** in **2024**, primarily due to **organic loan growth** and a **declining cost of funds**[152](index=152&type=chunk)[175](index=175&type=chunk) - Noninterest income saw a substantial **increase**, largely due to the **repositioning of the securities portfolio** (selling **$822.7 million** of available-for-sale securities at a **net loss of $72.1 million** in **Q2 2024**, which was not repeated in **Q2 2025**), and **increased income** from the equity method investment in BHG (**up 39.3%** for 3 months and **33.7%** for 6 months)[154](index=154&type=chunk)[184](index=184&type=chunk)[186](index=186&type=chunk)[187](index=187&type=chunk) - Noninterest expense **increased** due to a larger associate base (**3,627 FTE** at **June 30, 2025**, **up from** **3,469** at **June 30, 2024**), annual merit increases, and higher cash and equity incentive accruals. However, other noninterest expenses **decreased significantly** due to a one-time **$27.6 million** fee paid in **Q2 2024** to terminate a securities resale agreement[155](index=155&type=chunk)[196](index=196&type=chunk)[205](index=205&type=chunk) - The Allowance for Credit Losses (ACL) **increased to** **$422.1 million** at **June 30, 2025**, from **$414.5 million** at **December 31, 2024**, primarily due to **overall portfolio growth**. The ACL as a percentage of total loans **decreased slightly to** **1.14%** from **1.17%**, reflecting **reductions in specific reserves**[159](index=159&type=chunk)[217](index=217&type=chunk) - Pinnacle Financial and Pinnacle Bank continue to **exceed all regulatory minimum capital requirements** and are considered **well-capitalized**. The company's board authorized a **new $125.0 million share repurchase program** effective through **March 31, 2026**, though **no shares were repurchased** in the first six months of **2025**[160](index=160&type=chunk)[161](index=161&type=chunk)[233](index=233&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=67&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section incorporates market risk disclosures, including interest rate sensitivity and liquidity risk management, by reference from Item 2 - The required information for quantitative and qualitative disclosures about market risk is incorporated by reference from pages **43** through **66** of Part I - Item **2**[267](index=267&type=chunk) [Item 4. Controls and Procedures](index=67&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures and reports no material changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=67&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) [Changes in Internal Controls](index=67&type=section&id=Changes%20in%20Internal%20Controls) - The Chief Executive Officer and Chief Financial Officer concluded that Pinnacle Financial's disclosure controls and procedures were **effective as of June 30, 2025**[268](index=268&type=chunk) - **No material changes in internal control** over financial reporting occurred during the fiscal quarter ended **June 30, 2025**[269](index=269&type=chunk) PART II – Other Information This part provides additional information including legal proceedings, risk factors, equity security sales, and other disclosures [Item 1. Legal Proceedings](index=68&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings, with no material pending cases expected to adversely impact financial condition or results - There are **no material pending legal proceedings** to which Pinnacle Financial or its subsidiaries are a party[271](index=271&type=chunk) [Item 1A. Risk Factors](index=68&type=section&id=Item%201A.%20Risk%20Factors) This section details investment risks, primarily focusing on the proposed merger with Synovus, including approval contingencies, integration challenges, and transaction costs - The proposed merger with Synovus is **contingent upon various conditions**, including **shareholder and regulatory approvals**, which may delay or prevent its completion[273](index=273&type=chunk)[274](index=274&type=chunk)[277](index=277&type=chunk) - **Integration of Synovus's business may face difficulties** such as loss of key employees, operational disruptions, customer attrition, and unexpected problems with costs, technology, and credit[278](index=278&type=chunk)[279](index=279&type=chunk) - **Significant transaction and merger-related costs** will be incurred, which may not be offset by anticipated cost savings and efficiencies in the near term or at all[283](index=283&type=chunk) - **Failure to complete the merger could adversely affect** stock price, business operations, and liquidity, potentially requiring a **termination fee of $425.0 million**[287](index=287&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=71&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details common stock repurchases for tax withholding purposes, noting no repurchases under the publicly announced share repurchase program | Period | Total Number of Shares Repurchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs | | :-------------------------------- | :------------------------------- | :--------------------------- | :----------------------------------------------------------------------- | :--------------------------------------------------------------------------------------------------- | | **April 1, 2025** to **April 30, 2025** | **4,888** | **$95.36** | — | **$125,000,000** | | **May 1, 2025** to **May 31, 2025** | **102** | **$107.73** | — | **$125,000,000** | | **June 1, 2025** to **June 30, 2025** | **175** | **$109.56** | — | **$125,000,000** | | **Total** | **5,165** | **$96.14** | **—** | **$125,000,000** | - The repurchased **5,165 shares** were **withheld to satisfy tax withholding requirements** for vested restricted stock and restricted stock units[294](index=294&type=chunk) - Pinnacle Financial **did not repurchase any shares** under its **$125.0 million** share repurchase program during the three months ended **June 30, 2025**[292](index=292&type=chunk) [Item 3. Defaults Upon Senior Securities](index=71&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to Pinnacle Financial Partners, Inc. for the current reporting period [Item 4. Mine Safety Disclosures](index=71&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Pinnacle Financial Partners, Inc. for the current reporting period [Item 5. Other Information](index=71&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - **No director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements** during the quarter ended **June 30, 2025**[293](index=293&type=chunk) [Item 6. Exhibits](index=72&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including the merger agreement with Synovus, various certifications, and Inline XBRL documents - **Key exhibits include** the Agreement and Plan of Merger with Synovus Financial Corp. (Exhibit **2.1**) and related Letter Agreements (Exhibits **10.1**, **10.2**)[295](index=295&type=chunk) - **Certifications pursuant to** Rule **13a-14(a)**/**15d-14(a)** and **18** USC Section **1350** are filed/furnished as Exhibits **31.1**, **31.2**, **32.1**, and **32.2**[295](index=295&type=chunk) - **Inline XBRL documents** (Instance, Schema, Calculation, Label, Presentation, Definition Linkbase) are included as Exhibits **101.INS** through **101.DEF**[295](index=295&type=chunk) Signatures This section contains the required signatures of the principal executive and financial officers for the Form 10-Q, dated August 7, 2025 - The report was **signed by** M. Terry Turner, **President and Chief Executive Officer**, and Harold R. Carpenter, **Chief Financial Officer**, on **August 7, 2025**[298](index=298&type=chunk)

Core Viewpoint - Monteverde & Associates PC is investigating Pinnacle Financial Partners regarding its merger with Synovus Financial Corp, focusing on the fairness of the proposed transaction [1]. Company Overview - Monteverde & Associates PC is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report and has recovered millions for shareholders [1]. - The firm is located in the Empire State Building, New York City, and specializes in class action securities litigation [2]. Merger Details - The proposed merger involves a fixed exchange ratio of 0.5237 Synovus shares for each Pinnacle share [1]. - Upon completion of the merger, Pinnacle shareholders will own approximately 51.5% of the combined entity [1].

Core Viewpoint - Pinnacle Financial (PNFP) has experienced a significant downtrend, with a 16.4% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 typically indicating that a stock is oversold [2]. - PNFP's current RSI reading is 25.59, indicating that the heavy selling pressure may be exhausting, which could lead to a price rebound as the stock seeks to return to its previous equilibrium [5]. Group 2: Fundamental Analysis - There is a strong consensus among sell-side analysts that earnings estimates for PNFP have increased by 2.6% over the last 30 days, which often correlates with price appreciation in the near term [6]. - PNFP holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [7].

Group 1 - Pinnacle Financial Partners and Synovus Financial plan to merge in an all-stock transaction valued at $8.6 billion, with the transaction expected to close in the first quarter of 2026, pending regulatory and shareholder approvals [2][3] - The combined entity will operate under the Pinnacle Financial Partners and Pinnacle Bank brand, with Synovus Chairman Kevin Blair as president and CEO, and Pinnacle CEO Terry Turner as chairman of the board [3] - The merger aims to leverage Pinnacle's entrepreneurial operating model and Synovus' strong presence in fast-growing Southeastern markets to enhance market share [4] Group 2 - Both companies have demonstrated strong financial performance, with Synovus reporting a 28% year-over-year growth in adjusted earnings per share in the second quarter, while Pinnacle reported a 22.7% increase in fully diluted earnings per share [6][7] - The KBW Nasdaq Bank Index, which tracks larger banks, increased by 14%, while the KBW Nasdaq Regional Banking Index, covering smaller lenders, rose less than 3%, indicating a challenging environment for regional banks [5][6]

Summary of Conference Call on Pinnacle Financial Partners and Synovus Financial Corp Merger Industry and Companies Involved - **Industry**: Banking and Financial Services - **Companies**: Pinnacle Financial Partners and Synovus Financial Corp Core Points and Arguments 1. **Merger Announcement**: Pinnacle and Synovus have entered into a definitive agreement for an all-stock transaction, creating a high-performing commercial bank focused on growth in the Southeast [4][14] 2. **Financial Metrics**: The combined company will have total assets of $116 billion, total loans of $81 billion, and total deposits of $95 billion. The deal is expected to deliver 21% EPS accretion with a 2.5-year tangible book value earn-back [6][14] 3. **Market Positioning**: The merger aims to leverage Synovus' presence in high-growth markets, enhancing Pinnacle's operating model and expanding its footprint [5][22] 4. **Employee Engagement**: Both companies rank highly in employee satisfaction, which is expected to translate into better client service and satisfaction [10][12] 5. **Leadership Structure**: Post-merger, Pinnacle's leadership will include Terry Turner as Chairman, Kevin Blair as CEO, and Jamie Gregory as CFO, with a board comprising members from both companies [16][17] 6. **Geographic Focus**: The merger will enhance geographic diversification and reduce concentration risk, with a household growth rate of 4.6%, significantly above the national average [22][28] 7. **Cost Synergies**: Estimated no-regret cost savings of $250 million, representing 9% of the combined non-interest expense base, are anticipated [34] 8. **Regulatory Readiness**: The companies are preparing for regulatory approvals and have a roadmap for LFI readiness, with a focus on maintaining a solid capital position [38][92] 9. **Client Satisfaction**: Both companies have high rankings in client satisfaction, which is expected to remain a priority post-merger [30][29] 10. **Integration Strategy**: A detailed integration plan is in place, with a target for systems conversion approximately 12-14 months post-merger [95] Additional Important Points 1. **Retention Strategy**: Significant resources have been allocated for retention programs to ensure key talent remains through the transition [56] 2. **Cultural Alignment**: Both companies emphasize a performance-driven culture and commitment to operational excellence, which is expected to facilitate a smooth merger [24][25] 3. **Market Expansion**: The merger is characterized as a strategic expansion rather than a market consolidation, with minimal overlap in markets [22][28] 4. **Financial Assumptions**: The transaction is expected to be accretive to earnings, with no revenue synergies initially built into the financial model [32] 5. **Community Commitment**: Both companies have a strong track record of community engagement and intend to maintain this commitment post-merger [17][18] This summary encapsulates the key points discussed during the conference call regarding the merger between Pinnacle Financial Partners and Synovus Financial Corp, highlighting the strategic, financial, and operational aspects of the transaction.

Pinnacle Financial Partners and Synovus Financial Corp. Conference Call Summary Company and Industry Overview - **Companies Involved**: Pinnacle Financial Partners (PNFP) and Synovus Financial Corp - **Industry**: Banking and Financial Services Key Points and Arguments 1. **Transaction Announcement**: Pinnacle and Synovus have entered into a definitive agreement for an all-stock transaction, aiming to create a high-performing commercial bank focused on growth in the Southeast [4][6][15] 2. **Financial Metrics**: The combined company will have total assets of $116 billion, total loans of $81 billion, and total deposits of $95 billion. The deal is expected to deliver 21% EPS accretion with a 2.5-year tangible book value earn-back [6][15] 3. **Growth Projections**: The combined entity anticipates a return on average assets of almost 1.4% and a return on tangible common equity of 18% by 2027, while maintaining a focus on high growth and risk discipline [7][8] 4. **Market Positioning**: The merger is positioned to capitalize on projected household growth of 4.6%, which is 170% of the national average, enhancing market presence in the Southeast [9][12] 5. **Employee Satisfaction**: Pinnacle and Synovus rank highly in employee satisfaction, with both companies recognized as great places to work, which contributes to client satisfaction and loyalty [10][11] 6. **Transaction Structure**: The transaction has been unanimously approved by both boards, with Synovus shareholders receiving a fixed exchange ratio of 0.5237 shares of Pinnacle stock, representing a 10% premium [14][15] 7. **Leadership and Governance**: Post-merger, Pinnacle's leadership will include Terry Turner as Chairman, Kevin Blair as CEO, and Jamie Gregory as CFO, with a board comprising members from both companies [17][18] 8. **Cost Synergies**: The merger is expected to generate $250 million in cost savings, representing 9% of the combined non-interest expense base by 2027 [35] 9. **Integration Strategy**: A comprehensive due diligence process has been conducted to identify integration risks and ensure a smooth transition, with a focus on maintaining local market leadership [37][39] 10. **Regulatory Readiness**: The combined company anticipates a common equity Tier 1 ratio of approximately 9.8% at closing, with plans to manage capital growth effectively [39][40] Additional Important Insights 1. **Cultural Alignment**: Both companies emphasize a shared commitment to operational excellence and long-term value creation, which is expected to drive continued outperformance [25][26] 2. **Client Experience**: The merger aims to enhance client experience through a relationship-based approach, which has historically led to industry-leading deposit growth [30][32] 3. **Market Expansion**: The merger is characterized as a strategic expansion rather than a market consolidation, with minimal overlap in markets and a focus on enhancing geographic diversification [22][29] 4. **Retention Strategies**: Significant resources have been allocated for retention programs to ensure key talent remains through the transition [56][58] 5. **Future Growth Opportunities**: The combined entity is expected to explore new revenue sources through complementary specialty banking areas, enhancing overall service offerings [84][86] This summary encapsulates the key points discussed during the conference call regarding the merger between Pinnacle Financial Partners and Synovus Financial Corp, highlighting the strategic, financial, and operational aspects of the transaction.

Transaction Overview - Pinnacle and Synovus are combining to build the Southeast Growth Champion, with the transaction expected to close on March 31, 2026[3, 86] - The combined company aims to achieve top-quartile performance through high-growth markets, a winning culture, exceptional client service, a profitable growth strategy, and an efficient operating model[61] Financial Highlights - The combination is projected to result in $250 million in run-rate net expense savings, achieved through a detailed review of staffing, technology, and real estate needs[45] - The pro forma combined company is expected to generate $24 billion in capital in the first 7 quarters after closing, supporting future growth[49] - The transaction is expected to be EPS accretive, with pro forma 2027 EPS accretion estimated at 21%[17, 71] Market Position and Growth - The pro forma company will have a significant deposit market share in key Southeast MSAs, including a 1 rank in Carolinas with 148% deposit share[28, 36] - The combined company is positioned in America's best growth markets, with a pro forma branch footprint in areas projected to grow 2x faster than the national average in household growth at 46%[21, 26] - The combined entity boasts superior branch efficiency, with average deposits per branch of $202 million[22, 61] Synergies and Integration - The merger is expected to result in $285 million in gross synergies, partially offset by $35 million in additional investments for LFI readiness[45] - Limited workforce impact is anticipated, with only approximately 5% of the combined workforce expected to be affected[46] - The integration is designed to be low-risk due to limited geographic overlap, with over 75% of Pinnacle's deposits and over 75% of Synovus' deposits in non-shared MSAs[38]

Group 1 - Pinnacle Financial Partners has experienced a significant rebound, with shares returning approximately 20% since April [1] - The investment strategy focuses on a long-term, buy-and-hold approach, emphasizing stocks that can consistently generate high-quality earnings [1] - The company is primarily associated with the dividend and income investment sector [1]

Financial Data and Key Metrics Changes - In Q2 2025, revenue increased by 15.1% compared to the same quarter last year, adjusted EPS rose by 22.7%, and tangible book value per share grew by 10.9% year-over-year [6][7][10] - The company has achieved double-digit compound annual growth rates (CAGRs) over the last decade in revenue, EPS, and tangible book value per share, significantly outperforming peers [7][10] Business Line Data and Key Metrics Changes - End of period loans increased by 10.7% on a linked quarter annualized basis, driven by new markets and relationship managers [17] - Deposit growth was recorded at 4.7% linked quarter annualized, with an estimated total deposit growth rate maintained at 7% to 10% for 2025 [19][20] - Net interest margin (NIM) finished up two basis points at 3.23%, with expectations for a flat to slightly up NIM in the upcoming quarters [21] Market Data and Key Metrics Changes - Core deposit growth was 13%, significantly outpacing the peer median during a challenging economic environment [10] - The company has adjusted its loan growth outlook to a range of 9% to 11% for the year, reflecting a strong pipeline despite macroeconomic uncertainties [18] Company Strategy and Development Direction - The company employs a market share takeaway strategy, focusing on recruiting experienced revenue producers from competitors to drive growth [11][12] - The focus remains on organic growth rather than mergers and acquisitions, with a strong emphasis on hiring and developing talent within existing markets [35][36] - The company is optimistic about deepening its presence in current markets, particularly in Florida and Texas, while continuing to hire across its existing footprint [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the current economic environment, noting that clients are in a cautious state but showing underlying optimism for future growth [46][47] - The company anticipates a strong year in 2025, supported by investments in new markets and successful hiring strategies [28][26] Other Important Information - The company has raised its earnings estimate for Bankers Healthcare Group (BHG) from 20% growth to approximately 40% growth for 2025, driven by lower operating costs and improved credit performance [25] - The total expense outlook for the year has been modified to a range of $1,145 million to $1,155 million, reflecting a more positive outlook [27] Q&A Session Summary Question: Clarification on the expected asset growth from new hires - Management confirmed that the cohort of hires from 2020 to 2024 is expected to yield approximately $19 billion in organic asset growth through 2029 [30][31] Question: Appetite for M&A given organic growth success - Management reiterated a preference for organic growth over M&A, citing the ability to produce outsized growth through hiring rather than taking on integration risks [35][36] Question: Customer sentiment and appetite for growth - Management indicated that existing customers are currently cautious but optimistic about future opportunities, with a focus on maintaining credit quality [45][46] Question: Update on BHG's performance and outlook - Management noted that BHG's strong performance is driven by both production growth and improved credit quality, with expectations for continued strength in the second half of the year [56] Question: Future deposit costs and beta expectations - Management expects to maintain current deposit costs and beta levels, with a focus on managing through potential future rate cuts [105][106] Question: Regulatory developments and their impact - Management observed a more positive regulatory environment, which is not expected to alter the company's operational plans significantly [88][89]