Pinnacle Financial Partners, Inc.

2Q26 reported diluted EPS was $2.07 and adjusted diluted EPS was $2.50, excluding $82 million of pretax adjusted items. Adjusted diluted EPS was up 5% sequentially and 25% versus 2Q25; year-to-date adjusted EPS is up 26%. Net interest income was $956 million, up 2% sequentially, and net interest margin was 3.44%, down 9 bps sequentially. Loans grew $2.9 billion linked quarter, or 14% annualized, and deposits rose $795 million; excluding public funds, core deposits grew $963 million. Net charge-offs were $48 million, or 22 bps, and nonperforming assets improved to 0.5%; the ACL ratio was 1.17% versus 1.19% at March 31. Preliminary CET1 was 9.93%, up 12 bps. For 2026, management reiterated loan growth at the top end of 9%-11%, deposits in the middle of 8%-10%, full-year NIM of 3.44%-3.47%, revenue of $5.05 billion to $5.1 billion, adjusted expenses of $2.675 billion to $2.775 billion, and an adjusted tax rate of 20%-21%. They still expect credit losses within a 20-25 bps charge-off range.

Kevin Blair framed the quarter as evidence that the combined company is executing on growth, recruiting, credit discipline, and integration at the same time. He emphasized that the firm is gaining share and deepening client relationships during the merger, while keeping standards high on hiring and client selection. His tone was confident and assertive, but he repeatedly said they are not declaring victory and still have more to execute.

Andrew Gregory focused on the earnings bridge and balance sheet mechanics. He said adjusted EPS was up 5% sequentially and about 19% versus stand-alone consensus at announcement, with year-to-date adjusted ROTCE at 17.7%. He highlighted $956 million of NII, a 3.44% NIM, $48 million of net charge-offs, a 1.17% ACL ratio, and 9.93% CET1, and said capital generation remains strong as they work toward a 10.25% CET1 target. He also noted $51 million of nonrecurring merger expense in the quarter, $1 billion of municipal securities repositioned, and $750 million of senior debt issued to strengthen liquidity and funding.

Analysts focused on the NIM decline, the deposit outlook, loan spread competition, BHG, and whether loan growth or capital needs would constrain earnings power. Management said the margin pressure was driven more by SOFR, lower purchase-accounting accretion, liquidity actions, and quarter-end balance sheet positioning than by deposit competition, and said they are still seeing similar or wider spreads on new production across most geographies. On deposits, they expect second-half seasonal inflows, continued producer-led growth, and some broker deposit growth. On BHG, they said the business is performing well, production was up almost $1 billion from the prior quarter, and there is no change to the strategic outlook beyond continued execution.