Pinnacle Financial Partners (PNFP) Q3 2025 earnings summary

Executive summary

• Achieved one of the best quarters in company history, with double-digit year-over-year growth in EPS, revenue, and core deposits, and continued a long streak of beat-and-raise quarters.

• Loans grew 10.6% year-over-year to $37.9 billion; deposits increased 15.5% year-over-year to $45.7 billion, driven by strategic expansion and market share gains in Southeast markets.

• Net interest income and noninterest income both posted strong growth, with net interest margin expanding to 3.26%.

• Merger with Synovus is progressing well, with key leadership and system decisions finalized, regulatory applications filed, and closing expected in early Q1 2026.

• Asset quality metrics remain at or near historical lows, with robust credit performance and high associate retention.

Financial highlights

• End-of-period loans increased 8.9% annualized linked quarter; total deposits grew 6.4% annualized, with noninterest-bearing deposits up 14.5% annualized.

• Q3 2025 net interest income was $396.9 million, up 12.9% year-over-year; total Q3 revenues were $544.8 million, up 16.7% year-over-year.

• Noninterest income rose 28.4% year-over-year, driven by wealth management and BHG investment income.

• Adjusted noninterest expense increased 13.9% year-over-year, reflecting higher headcount and incentive accruals.

• Tangible book value per share grew 11.6% year-over-year to $61.53.

Outlook and guidance

• Loan growth outlook for 2025 raised to 9%-10%; deposit growth guidance increased to 8%-10%.

• Net interest income growth projected at 13%-14% over 2024; noninterest income growth guidance increased to 20%-22% for 2025.

• Total expense outlook set at $1.15-$1.155 billion; effective tax rate projected in the low 18% range.

• Net charge-offs expected to remain in the 0.18–0.20% range; provision for loan losses at 0.26–0.27% of average loans.

• Merger with Synovus is projected to deliver significant cost and revenue synergies, with $250 million in estimated cost savings.