Pinnacle Financial Partners (PNFP) investor relations material

Merger integration and culture

• Successfully merged two organizations, emphasizing cultural similarities and maintaining the Pinnacle model with local decision-making and unified incentive plans.

• All 8,500 team members now receive annual equity and are on company-wide incentive plans tied to EPS and revenue targets, accelerating $30 million in expenses into 2026.

• Banker retention remains strong, with voluntary turnover at 7%, top decile for the industry, and continued hiring momentum.

• Enhanced technology and capabilities from Synovus are being integrated, with no increase in attrition and continued hiring.

• Systems conversion is intentionally paced for client-centric integration, with full conversion targeted for March 2027 and interim onboarding on the end-state platform.

Financial performance and outlook

• Loan growth guidance for 2026 is 9%-11%, driven by bankers already hired, with strong momentum from both legacy organizations.

• Deposit growth is expected to track with new relationship banking, leveraging specialty deposit verticals and balanced pricing strategies.

• Margin outlook is stable, with limited impact from rate cuts due to asset sensitivity management; guidance assumes two rate cuts in 2026.

• Expense synergies of $250 million are on track, with additional efficiency opportunities identified post-conversion.

• Capital levels are strong, with CET1 expected at 10% post-close and plans to accrete into a 10.25%-10.75% range.

Business lines and growth drivers

• Commercial real estate and specialty businesses are expected to be key growth drivers, with equipment finance and HOA business expanding the footprint.

• Revenue synergies of $100-$130 million over three years are projected, with immediate gains from specialty lending and new hires.

• BHG business is performing strongly, with 25%-35% revenue growth expected in 2026 and collaborative efforts to maximize value.

• Increased balance sheet scale provides more lending capacity and confidence for bankers to pursue larger clients.