Pinnacle Financial Partners, Inc. (PNFP)

Price$99.13Cached quoteAs of 2026-09-10 00:57 UTC

AI: Fair-priced

Price checkThe shares look reasonable, but the merger still leaves too much uncertainty for a clear bargain.

At the observed quote, Pinnacle trades at about 14 times trailing reported earnings and roughly 10.4 times an annualized version of first-half adjusted earnings. The second measure removes merger-related and other unusual items, so it is useful but less conservative. The quote also equals about 1.6 times June tangible book value, meaning common equity after goodwill and other intangibles. Those signals are not expensive for strong returns, but they already assume merger benefits persist, supporting a Fair-priced verdict rather than a clear discount.

Big pictureEarnings have recovered strongly, but bank cash flows remain lumpy and interest-rate sensitive.

Legacy Pinnacle’s 2025 revenue rose 18% to $2.05 billion and net income rose 35% to $642 million, while diluted earnings per share rebounded to $8.07 from $5.96 in 2024, though 2024 itself was weaker than 2023. Operating cash flow fell to $759 million from $904 million despite higher profit; after about $80 million of capital spending, the simple cash surplus was roughly $679 million. For banks, cash flow is noisy because deposits and loans move through financing accounts. The second-quarter interest margin fell from 3.53% to 3.44%.

Business strengthCredit losses remain controlled, deposits cover loans, and merger savings are already improving efficiency.

At June 30, loans were $88.1 billion and deposits $100.9 billion, an approximately 87% loan-to-deposit ratio that leaves a useful funding cushion. Nonperforming loans were 0.47% of loans, while annualized loans written off after recoveries were 0.22%; credit-loss reserves equaled 1.17% of loans. The Common Equity Tier 1 ratio, a key regulatory capital buffer, improved to 9.93% from 9.81% in March. Adjusted operating expense fell 2% sequentially, while operating costs relative to revenue improved to 49.8%.

What could change the storySuccessful integration could unlock more value, while funding pressure or weak credit would quickly erase it.

The bull case is straightforward: management expects 9–11% loan growth, 8–10% deposit growth and about $5.05–$5.10 billion of adjusted 2026 revenue while merger savings continue. The bear case is that loans are growing faster than deposits, increasing reliance on costlier wholesale funding and limiting the interest margin to a 3.44–3.47% outlook. Legacy 2025 dividends used about 12% of net income, so most earnings were retained; no 2026 buybacks are expected. Shares nearly doubled to 151.1 million as merger consideration, not employee dilution. The valuation needs adjusted earnings near the recent run rate, stable credit, and a clean 2027 systems conversion.

AI: News

Second-quarter earnings improveAdjusted earnings rose as loan growth and merger savings outweighed softer margins and one-time costs.

On July 22, Pinnacle reported $313 million of common-shareholder net income and $2.07 of reported earnings per share; adjusted earnings were $2.50 per share, up 25% from the prior-year quarter. Loans grew $2.9 billion from March, while deposits rose $795 million. The interest margin fell from 3.53% to 3.44%, but adjusted expenses declined 2% sequentially. Shares rose about 5.4% across the next two sessions; that timing is supportive, but it does not prove the earnings release alone caused the move.

Growth guidance reaffirmedManagement kept aggressive growth goals while saying merger savings could hold expenses below plan.

At the June 9 Morgan Stanley conference, Pinnacle said 2026 loans were trending toward the high end of a $91–$93 billion range, deposits remained on track for $106.5–$108.5 billion, and adjusted revenue was trending toward $5.05–$5.10 billion. Management also expected adjusted expenses in the lower half of its prior range and said no share repurchases were planned for 2026. The stock fell over the following two sessions, but broader market moves and other factors make attribution uncertain.

Synovus merger completedThe Synovus merger nearly doubled Pinnacle’s share count and transformed the bank’s scale and earnings base.

The merger closed January 1 and the combined shares began trading January 2. The new company started with about $117.2 billion of estimated combined assets, $95.7 billion of deposits and $80.4 billion of loans. Synovus holders received 0.5237 new Pinnacle shares for each Synovus share; by June, common shares outstanding were about 151.1 million versus 77.7 million at legacy Pinnacle year-end. The first trading day ended only modestly lower, so the immediate price move does not isolate merger effects; the lasting issue is synergy versus integration execution.

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Revenue

2022

2023

2024

2025

Net income

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022
Revenue	$2.05B	$1.74B	$1.70B	$1.30B
Operating expenses	$1.17B	$1.03B	$887.8M	—
Net income	$641.9M	$475.1M	$562.2M	$560.7M
Net profit margin	31.24%	27.35%	33.16%	42.98%
Basic EPSper basic share	$8.15	$6.01	$7.20	$7.20
Diluted EPSper diluted share	$8.07	$5.96	$7.14	$7.17

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Owners

Reported shareholders

Reference date Jun 30, 2026

11.19%of listed shares

BlackRock, Inc.16.9M shares · Jun 30, 2026

View holders

Top 20 reported holders of PNFP
Holder	% owned
BlackRock, Inc.	11.19%16.9M shares
WELLINGTON MANAGEMENT GROUP LLP	7.38%11.14M shares
FMR LLC	6.95%10.49M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	4.57%6.91M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.36%6.58M shares
STATE STREET CORP	4.10%6.18M shares
Invesco Ltd.	3.71%5.61M shares
T. Rowe Price Investment Management, Inc.	3.56%5.38M shares
DIMENSIONAL FUND ADVISORS LP	3.38%5.1M shares
NORGES BANK	2.27%3.43M shares
AQR CAPITAL MANAGEMENT LLC	2.27%3.42M shares
Pinnacle Financial Partners, Inc.	2.26%3.42M shares
GEODE CAPITAL MANAGEMENT, LLC	1.97%2.98M shares
BANK OF MONTREAL /CAN/	1.20%1.82M shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	1.10%1.66M shares
MORGAN STANLEY	0.93%1.41M shares
NORTHERN TRUST CORP	0.90%1.36M shares
Bank of New York Mellon Corp	0.87%1.32M shares
MANUFACTURERS LIFE INSURANCE COMPANY, THE	0.77%1.17M shares
Impax Asset Management Group plc	0.76%1.14M shares