Financial Data and Key Metrics Changes - The company reported a third quarter linked quarter annualized growth rate of 14.5% for non-interest bearing deposits, 10.6% for core deposits, 8.9% for loans, 31.5% for revenue, and 54% for adjusted EPS [9][17][20] - The net interest margin (NIM) increased by three basis points to 3.26% in the third quarter, with expectations for further increases in 2025 due to anticipated rate cuts [20][21] - The estimated growth range for net interest income has been increased to approximately 13% to 14% over 2024 results [21][26] Business Line Data and Key Metrics Changes - End of period loans increased by 8.9% linked quarter annualized, with an adjusted outlook for loan growth in 2025 set at 9% to 10% [17][19] - Non-interest income growth guidance has been raised from 12% to 15% to now 20% to 22% for the year, driven by strong performance in banking fees and wealth management [25][26] - BHG contributed over $40 million in fee revenues in the third quarter, with expectations for approximately $30 million in the fourth quarter [23][24] Market Data and Key Metrics Changes - The company has successfully increased market share in key regions, with significant share losses noted among competitors in Nashville, Chattanooga, Knoxville, and Memphis [10][11] - The merger with Synovus is expected to enhance market share and competitive positioning, with combined Net Promoter Scores indicating a strong service model [12][13][30] Company Strategy and Development Direction - The company aims to continue its strategy of recruiting and retaining market-leading revenue producers to drive sustainable balance sheet growth [6][7] - The merger with Synovus is viewed as a unique opportunity to create a differentiated service model, enhancing growth potential in the Southeast [12][30] - The focus remains on leveraging competitive vulnerabilities in targeted markets to capture additional market share [10][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining hiring momentum and achieving growth targets despite market uncertainties [15][30] - The outlook for 2025 is optimistic, with expectations for strong performance driven by continued hiring and market expansion [26][30] - Management acknowledged the hard work required for integration but remains committed to achieving financial and client-centric goals [71] Other Important Information - The company has maintained a 93% associate retention rate, indicating strong employee engagement and stability during the merger process [72] - The effective tax rate for 2025 is projected to be in the low 18% range, consistent with the previous year [26] Q&A Session Summary Question: Are there enough revenue producers in the market to hire? - Management indicated that while there may not be 300 revenue producers available immediately, the hiring strategy has historically proven effective in identifying talent over time [33][34] Question: How does the pro forma balance sheet affect BHG's use case? - Management believes that BHG's growth will remain consistent, with no significant changes in approach post-merger [38][40] Question: Will the hiring strategy change post-merger? - Management expressed confidence that the existing hiring strategy will continue to be successful, emphasizing the unique approach to recruitment [52][56] Question: What are the expectations for BHG's growth into 2026? - Management anticipates continued growth for BHG, albeit at a more moderate rate compared to the current year [45][46] Question: What are the tailwinds for margin improvement? - Management identified deposit beta, growth in non-interest bearing deposits, and fixed-rate loan repricing as key factors contributing to margin improvement [77][78]

Financial Data and Key Metrics Changes - The company reported a 14.5% linked quarter annualized growth rate for non-interest-bearing deposits, 10.6% for core deposits, 8.9% for loans, 31.5% for revenue, and 54% for adjusted EPS in Q3 2025 [9] - The net interest margin (NIM) increased by three basis points to 3.26% in Q3 2025, with expectations for further increases in Q4 2025 [19][20] - The estimated growth range for net interest income has been increased to approximately 13% to 14% over 2024 results [20] Business Line Data and Key Metrics Changes - End-of-period loans increased by 8.9% linked quarter annualized, with an adjusted outlook for end-of-period loan growth now set at 9% to 10% for the year [17] - Non-interest income guidance has been increased from 12% to 15% growth to now 20% to 22% growth for the year, driven by strong performance in banking fees and wealth management [24] Market Data and Key Metrics Changes - The company has gained market share in key markets, with significant share losses noted among competitors in Nashville, Chattanooga, Knoxville, and Memphis [10][11] - The company is positioned to capitalize on competitive vulnerabilities in other southeastern markets, with notable share losses in Greensboro, Raleigh, Greenville, Charleston, and Atlanta [11] Company Strategy and Development Direction - The company aims to build a "Southeast Growth Champion" through continuous recruitment and retention of market-leading revenue producers, which has historically led to sustainable balance sheet growth [8][27] - The merger with Synovus Financial Corp. is expected to enhance the company's competitive position, allowing for accelerated revenue and EPS growth [12][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining hiring momentum and achieving strong financial performance post-merger, with a focus on leveraging the combined strengths of Pinnacle and Synovus [14][26] - The company anticipates 2025 to be one of the best years in its history, driven by ongoing hiring, revenue growth, and the integration of Synovus [26] Other Important Information - The company reported a decrease in net charge-offs by 18 basis points in Q3 2025, with an unchanged outlook for net charge-offs for the full year [21] - BHG's fee revenues exceeded $40 million in Q3 2025, with expectations for approximately $30 million in Q4 2025 [22] Q&A Session Summary Question: Are there 300 RMs that fit the Pinnacle model in the market? - Management indicated that while there may not be 300 RMs currently available, there will be over time, and the hiring strategy has proven successful historically [31] Question: How does the pro forma balance sheet change the use case for BHG? - Management stated that BHG's growth is expected to remain consistent, with strong production and demand for their products [34] Question: Is there any incremental risk identified post-merger? - Management noted that there are no significant risks identified, and the focus remains on integrating the two companies effectively [55] Question: What is the outlook for hiring strategy post-deal close? - Management expressed confidence that the existing hiring strategy will continue to be successful, emphasizing a unique approach compared to competitors [43] Question: What are the expectations for fee income growth post-merger? - Management believes that the merger will create significant revenue synergies, enhancing fee income growth opportunities [40]

Financial Performance & Growth - PNFP's 3Q25 linked-quarter annualized revenue growth rate was 31.5%[25] - Adjusted EPS grew 54.0% linked-quarter annualized in 3Q25[25] - Average loans grew 7.8% linked-quarter annualized in 3Q25[38] - Average deposits grew 11.3% linked-quarter annualized in 3Q25[45] - The industry is increasing its estimate for 2025 year-over-year net interest income growth to 13-14%[68] - The industry is increasing its estimate for 2025 fee growth over 2024 to approximately 20-22%, excluding certain items[68] Strategic Initiatives & Market Position - PNFP's FDIC deposit market share in Nashville increased by 7.3 percentage points from 2015 to 2025[27] - PNFP's offer acceptance rate for revenue producers remained high at 91.6% in 3Q25[36] - The industry plans to add approximately 150 revenue producers in 2026, with further increases planned for 2027[37] Merger with Synovus Financial Corp - The merger with Synovus is expected to result in a 21% EPS accretion by 2027[72] - Pro forma CET1 at close is projected to be 10.1%[72] - The merger is expected to close in Q1 2026, with operational conversion in Q1 2027[72] BHG Financial Overview - BHG reported strong year-to-date earnings of $189 million[63] - BHG's placements to institutional investors was a record in 3Q at $1.3 billion[179] - Over 80% of BHG's 2025 originations were to borrowers with FICO scores of 700+[191]

Financial Performance - Net interest income increased by 3% QoQ and 8% YoY to $474695 thousand [11] - Non-interest revenue increased by 5% QoQ and 13% YoY to $140697 thousand [11] - Total revenue increased by 4% QoQ and 9% YoY to $615392 thousand [11] - Adjusted total revenue (TE) increased by 4% QoQ and 9% YoY to $612794 thousand [11] - Adjusted non-interest expense increased by 3% QoQ and 6% YoY to $320216 thousand [11] - Adjusted diluted EPS decreased by 1% QoQ but increased by 19% YoY to $146 [11] - Loans remained flat QoQ and increased by 1% YoY to $43753 million [13] - Deposits remained flat QoQ and YoY at $50004 million [13] Credit Quality & Capital - NCOs/Average Loans was 014% [13] - NPLs/Loans was 048% [13] - Allowance for Credit Losses % was 119% [13] - CET1 Ratio was 1124% [13] Merger with Pinnacle Financial Partners - The merger is expected to result in 21% EPS accretion in 2027E [30] - TBV dilution earnback is projected to be 26 years [30]

Core Viewpoint - Pinnacle Financial Partners (NASDAQ: PNFP) has experienced a decline of approximately 10% in its share value over the past year, with significant underperformance noted following the announcement of a large acquisition [1] Group 1: Company Performance - The stock has underperformed particularly since the announcement of a major acquisition, leading to investor disappointment regarding the company's decision not to pursue a sale [1] Group 2: Market Sentiment - Concerns have arisen among investors regarding the implications of the acquisition on the company's future performance and strategic direction [1]

Core Insights - Pinnacle Financial Partners (NASDAQ: PNFP) has experienced a decline of approximately 10% in its share value over the past year, with significant underperformance noted following the announcement of a large acquisition [1] Group 1: Company Performance - The stock has underperformed particularly since the announcement of a major acquisition, leading to investor disappointment regarding the company's decision not to pursue a sale [1] Group 2: Market Sentiment - Concerns have arisen among investors regarding the implications of the acquisition on the company's future performance and strategic direction [1]

Group 1: Earnings Performance - Pinnacle Financial reported quarterly earnings of $2.27 per share, exceeding the Zacks Consensus Estimate of $2.05 per share, and up from $1.86 per share a year ago, representing an earnings surprise of +10.73% [1] - The company posted revenues of $544.8 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.74%, compared to year-ago revenues of $466.75 million [2] - Over the last four quarters, Pinnacle Financial has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Pinnacle Financial shares have declined approximately 19.7% since the beginning of the year, while the S&P 500 has gained 13% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $2.06 on revenues of $526.16 million, and for the current fiscal year, it is $8.11 on revenues of $2.02 billion [7] Group 3: Industry Context - The Zacks Industry Rank indicates that the Banks - Southeast industry is currently in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5] - The estimate revisions trend for Pinnacle Financial was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Financial Performance - Pinnacle Financial Partners reported a diluted EPS of $2.19 for Q3 2025, a 17.7% increase from $1.86 in Q3 2024, and $5.96 for the nine months ended Sept. 30, 2025, up 46.1% from $4.08 in the same period last year[1]. - Total revenues for Q3 2025 were $544.8 million, a year-over-year increase of 16.7% from $466.7 million in Q3 2024, with net interest income growing by 12.9% to $396.9 million[9][10]. - Pre-tax, pre-provision net revenues (PPNR) for Q3 2025 were $241.7 million, a 16.5% increase from $207.4 million in Q3 2024, while adjusted PPNR rose by 20.3% to $249.5 million[7][8]. - Net income available to common shareholders for the nine months ended September 30, 2025, was $460.69 million, up 47.5% from $312.40 million for the same period in 2024[34]. - Basic net income per common share for the three months ended September 30, 2025, was $2.20, compared to $1.87 for the same period in 2024, reflecting a growth of 17.7%[35]. - Net income for the quarter ended September 2025 was $173,136 thousand, compared to $140,408 thousand in June 2025, reflecting an increase of 23.3%[40]. Asset and Deposit Growth - Total assets reached $56.0 billion as of Sept. 30, 2025, reflecting a year-over-year increase of 10.4%[6]. - Total deposits rose to $45.73 billion as of September 30, 2025, compared to $40.95 billion a year earlier, marking an increase of 11.5%[33]. - Core deposits increased by 10.6% year-over-year, with noninterest-bearing deposits rising by 14.5% linked-quarter and 12.8% year-to-date[5][7]. - Total assets increased to $55.96 billion as of September 30, 2025, up from $52.59 billion at December 31, 2024, representing a growth of 4.5%[33]. Loan Performance - Loan originations totaled $1.7 billion in Q3 2025, up from $1.5 billion in Q2 2025 and $989 million in Q3 2024[13]. - The commercial and industrial loan segment saw a linked-quarter annualized growth of 17.9%, contributing to overall loan growth of 8.9%[6]. - Total loans increased to $37,932,613 thousand in September 2025, up from $36,136,746 thousand in March 2025, representing a growth of 4.9%[40]. Noninterest Income and Expenses - Noninterest income for the quarter was $69.1 million, a slight decrease of $244,000 from Q3 2024[13]. - Noninterest expense for Q3 2025 was $303.1 million, a 16.9% increase from $259.3 million in Q3 2024, with adjusted noninterest expense rising by 12.5%[11][12]. - Noninterest income for the nine months ended September 30, 2025, totaled $371.82 million, a significant increase from $259.63 million in the same period of 2024, representing a growth of 43.2%[34]. Merger and Acquisition Activities - The company anticipates cost savings of $250 million from the merger with Synovus on a fully phased-in basis[19]. - The merger with Synovus is expected to close early in Q1 2026, with regulatory applications filed on August 25, 2025[18]. - The company is actively pursuing potential future acquisitions to enhance its business operations[28]. Regulatory and Economic Considerations - Pinnacle Financial is facing risks related to maintaining long-term growth rates in its loan portfolio and growing low-cost core deposits[25]. - Regulatory approvals for the merger are uncertain, which could impose conditions that adversely affect the combined company[25]. - The company is monitoring the impact of economic conditions on asset quality and credit risk, which could affect future results[25]. Efficiency and Ratios - The efficiency ratio improved to 55.64% in Q3 2025, compared to 56.72% in Q2 2025 and 55.56% in Q3 2024[53]. - The return on average assets improved to 1.22% in September 2025, compared to 1.05% in June 2025[40]. - The common equity Tier one ratio remained stable at 10.8% in September 2025, consistent with June 2025[49].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Viewpoint - Analysts forecast that Pinnacle Financial (PNFP) will report quarterly earnings of $2.05 per share, reflecting a year-over-year increase of 10.2%, with anticipated revenues of $520.15 million, an 11.4% increase compared to the previous year [1]. Earnings Projections - The consensus EPS estimate has been revised upward by 0.1% in the past 30 days, indicating a reassessment by covering analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Key Financial Metrics - The consensus estimate for 'Net Interest Margin' is 3.2%, unchanged from the previous year [5]. - Analysts predict an 'Efficiency Ratio' of 54.5%, down from 55.6% in the same quarter last year [5]. - 'Nonaccrual loans' are expected to reach $161.39 million, up from $119.29 million year-over-year [5]. Asset and Income Estimates - 'Average balances - Total interest-earning assets' are projected to be $49.69 billion, an increase from $44.86 billion year-over-year [6]. - Total nonperforming assets are estimated at $166.75 million, compared to $120.12 million in the same quarter last year [6]. - 'Total noninterest income' is expected to be $126.71 million, up from $115.24 million year-over-year [7]. Specific Income Components - 'Net Interest Income' is projected at $392.83 million, compared to $351.50 million in the previous year [7]. - 'Service charges on deposit accounts' are expected to reach $17.46 million, up from $16.22 million year-over-year [8]. - 'Insurance sales commissions' are estimated at $3.66 million, compared to $3.29 million in the same quarter last year [8]. - 'Trust fees' are projected to be $9.47 million, up from $8.38 million year-over-year [9]. - 'Income from equity method investment' is expected to be $25.86 million, compared to $16.38 million last year [9]. - 'Other noninterest income' is projected at $50.19 million, up from $48.63 million year-over-year [9]. Stock Performance - Over the past month, shares of Pinnacle Financial have decreased by 6.8%, while the Zacks S&P 500 composite has increased by 3.5% [11]. - Currently, PNFP holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [11].