Financial Performance - Diluted net income per common share for Q3 2025 was $2.19, up from $1.86 in Q3 2024, and for the nine months ended September 30, 2025, it was $5.96 compared to $4.08 in the same period of 2024[149] - Net interest income for Q3 2025 was $396.9 million, a 12.9% increase from $351.5 million in Q3 2024, and for the nine months, it was $1.1 billion, up 13.9% from $1.0 billion[157] - Noninterest income increased by $32.7 million, or 28.4%, in Q3 2025 compared to Q3 2024, and by $112.2 million, or 43.2%, for the nine months[159] - Net income for Q3 2025 was $173.1 million, an 18.0% increase from $146.7 million in Q3 2024[174] - Basic net income per common share increased to $2.20 in Q3 2025, up 17.6% from $1.87 in Q3 2024[174] Loans and Deposits - Total loans increased to $37.9 billion as of September 30, 2025, from $35.5 billion at December 31, 2024, while total deposits rose to $45.7 billion from $42.8 billion in the same period[149] - Loans increased by $2.4 billion, or 6.9%, during the nine months ended September 30, 2025 compared to December 31, 2024, primarily due to growth in specialty lending groups[165] - Total deposits rose to $45.7 billion at September 30, 2025, an increase of $2.9 billion, or 6.7%, from December 31, 2024[165] - Noninterest-bearing deposits increased by $782.5 million, or 9.6%, to $9.0 billion at September 30, 2025, attributed to the success of treasury management and specialty deposit groups[165] Credit Quality - The provision for credit losses was $31.9 million for Q3 2025, compared to $26.3 million in Q3 2024, while for the nine months, it was $73.1 million versus $90.9 million in the same period[158] - The allowance for credit losses was $434.5 million at September 30, 2025, up from $414.5 million at December 31, 2024, with a ratio of 1.15% to total loans[166] - Loans past due 30 to 89 days totaled $66,336 thousand as of September 30, 2025, compared to $62,131 thousand at December 31, 2024, reflecting an increase in short-term delinquencies[221] - Loans past due 90 days or more decreased to $87,614 thousand from $103,951 thousand, resulting in a reduction in the ratio of such loans to total loans from 0.29% to 0.23%[222] Expenses - Noninterest expense increased by $43.8 million, or 16.9%, and $92.0 million, or 11.9%, for the three and nine months ended September 30, 2025 compared to the same periods in 2024[161] - Salaries and employee benefits increased by $26.8 million and $84.0 million, respectively, during the three and nine months ended September 30, 2025, driven by an increase in the associate base to 3,657.5 full-time equivalent associates[161] - Total noninterest expense increased by 16.9% to $303.1 million for the three months ended September 30, 2025, and by 11.9% to $865.1 million for the nine months ended September 30, 2025 compared to the same periods in 2024[204] Merger Activity - The company entered into a merger agreement with Synovus and Steel Newco Inc., with the merger expected to create a new entity named Pinnacle Financial Partners, Inc.[150] - The merger agreement includes a termination fee of $425 million payable under certain circumstances[156] - Merger-related expenses totaled $7.7 million for the three months ended September 30, 2025, associated with the proposed merger with Synovus[213] Capital and Shareholder Returns - Shareholders' equity increased to $6.9 billion as of September 30, 2025, up from $6.4 billion at December 31, 2024[237] - The bank paid dividends of $91.5 million during the nine months ended September 30, 2025, within regulatory limits[241] - A share repurchase program for up to $125 million was authorized, effective through March 31, 2026[240] Asset Management - Total assets reached $53.86 billion as of September 30, 2025, compared to $48.87 billion as of September 30, 2024, indicating a growth of 10.0%[180] - The investment securities portfolio amounted to $9.1 billion at September 30, 2025, compared to $8.4 billion at December 31, 2024, with a tax equivalent yield of 4.41%[229] - The company plans to fund increased loan volumes by growing core deposits while managing wholesale funding to maintain liquidity[185] Interest Rates and Liquidity - The average rate paid on interest-bearing demand accounts was 2.83% at September 30, 2025, down from 3.11% at December 31, 2024[233] - The liquidity coverage ratio was compliant as of September 30, 2025, ensuring the company can meet its daily cash flow requirements[260] - The company had approximately $6.7 billion in available Federal Reserve discount window lines of credit as of September 30, 2025[264]
PINNACLE FINL PA(PNFPP) - 2025 Q3 - Quarterly Report