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1. Company Snapshot

1.a. Company Description

Pinnacle Financial Partners, Inc., together with its subsidiaries, operates as the bank holding company for Pinnacle Bank that provides various banking products and services in the United States.The company accepts various deposits, including savings, checking, noninterest-bearing and interest-bearing checking, money market, and certificate of deposit accounts.Its loan products include commercial loans, such as equipment and working capital loans; commercial real estate loans comprising investment properties and business loans secured by real estate; and loans to individuals consisting of secured and unsecured installment and term loans, lines of credit, residential first mortgage loans, and home equity loans and lines of credit, as well as provides credit cards for consumers and businesses.


The company also offers various securities and other financial products; investment products; brokerage and investment advisory programs; and fiduciary and investment management services, such as personal trust, endowments, foundations, individual retirement accounts, pensions, and custody.In addition, it provides insurance agency services primarily in the property and casualty area; merger and acquisition advisory services; and private debt, equity and mezzanine, and other middle-market advisory services.Further, the company offers treasury management, telephone and online banking, mobile banking, debit cards, direct deposit and remote deposit capture, mobile deposit option, automated teller machine, and cash management services.


It serves individuals, small to medium-sized businesses, and professional entities.As of December 31, 2020, the company operated 114 offices, including 48 in Tennessee, 36 in North Carolina, 20 in South Carolina, 9 in Virginia, and 1 in Georgia.Pinnacle Financial Partners, Inc.


was incorporated in 2000 and is headquartered in Nashville, Tennessee.

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1.b. Last Insights on PNFP

Pinnacle Financial Partners, Inc.'s recent performance was negatively impacted by decreased institutional investor holdings. Channing Capital Management LLC and Federated Hermes Inc. reduced their positions in the company by 98.9% and 90.3%, respectively. Additionally, the company's Q4 2025 earnings per share of $2.24 missed estimates. Despite this, the company received a "Moderate Buy" rating from analysts, with 11 recommending a buy and 8 a hold. The company's merger culture and growth expectations were highlighted by its CEO, but concerns remain.

1.c. Company Highlights

2. Pinnacle Financial Partners' Strong 2025 Performance and Promising 2026 Outlook

Pinnacle Financial Partners reported a robust fourth-quarter 2025 performance, with adjusted EPS of $2.24, stable quarter-over-quarter and up 18% year-over-year, slightly missing estimates of $2.32. The company's revenue growth was driven by strong loan and deposit performance. The net interest margin, a key metric for banks, is expected to be between 3.45% and 3.55% in 2026. The company's 2025 performance was marked by Legacy Pinnacle growing adjusted diluted earnings per share by 22% and Legacy Synovus growing by 28%.

Publication Date: Jan -23

📋 Highlights
  • Merger Synergies and Loan Growth: Combined entity targets $91B–$93B in loans (9–11% growth) in 2026, with revenue synergies of $100M–$130M over 2–3 years.
  • Earnings Performance: Legacy Pinnacle grew adjusted diluted EPS by 22% (Q4 2025), while Legacy Synovus saw 28% growth, both up YoY.
  • Capital Allocation: $400M share repurchase program approved, alongside a $0.50/share dividend, reflecting confidence in capital returns.
  • Cost Management: Adjusted noninterest expenses projected at $2.7B–$2.8B in 2026, with cost savings delayed to 40% recognition in 2026 due to integration delays.
  • Deposit and Funding Strategy: Deposit costs fell to ~3.14% (SunTrust side), with expectations of further declines as rates drop, supporting margin stability.

Merger Synergies and Integration Progress

The merger between Pinnacle and Synovus was completed on January 1, 2026, and the team has started executing on the Pinnacle operating model. The company expects revenue synergies from the merger to be $100 million to $130 million over the next two to three years, with some benefits already materializing in 2026. The company has made progress on integration, with the expectation that loan growth will accelerate throughout the year.

Loan Growth and Deposit Trends

Loan growth is projected to be 9-11% on a pro forma basis, driven by existing team members, recent hires, and specialty growth businesses. The company's client sentiment survey shows constructive views, and it expects business activity to pick up over the next 12 months. The company expects deposit costs to continue to decrease as rates come down, with the going rate for deposits currently around 3.14% on the SunTrust side and slightly higher on the Pinnacle side.

Valuation and Dividend Yield

With a P/TBV ratio of approximately 1.09, the company's valuation appears reasonable. The dividend yield is around 0.98%, providing a relatively stable return for investors. Analysts estimate next year's revenue growth at 9.8%, in line with the company's guidance. The company's focus on client service, talent acquisition, and revenue growth positions it for long-term success.

Outlook and Guidance

The company guides for 20-25 basis points in charge-offs for the full year, with stable levels expected in the first quarter. They have observed no systemic changes in asset classes, with charge-offs expected to remain stable. The company's CET1 ratio is 10%, and it screens low relative to category 4 peers, providing room for potential capital management initiatives.

3. NewsRoom

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Pinnacle Financial Partners, Inc. $PNFP Holdings Decreased by Channing Capital Management LLC

Feb -23

Source: defenseworld.net

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Merit Financial Group LLC Purchases 9,600 Shares of Pinnacle Financial Partners, Inc. $PNFP

Feb -18

Source: defenseworld.net

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Pinnacle Financial Partners Conference: CEO touts merger culture, 9%-11% loan growth, $250M synergies

Feb -16

Source: defenseworld.net

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Pinnacle Financial Partners, Inc. (PNFP) Presents at Bank of America Financial Services Conference 2026 Transcript

Feb -11

Source: seekingalpha.com

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Are You Looking for a High-Growth Dividend Stock?

Feb -11

Source: zacks.com

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Pinnacle Financial Partners Earns a Combined 50 Coalition Greenwich Best Bank Awards – More Than Any Other Bank in the Country

Feb -11

Source: businesswire.com

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Pinnacle Financial Partners, Inc. $PNFP Stock Position Lowered by Federated Hermes Inc.

Feb -08

Source: defenseworld.net

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Pinnacle Financial Partners, Inc. (NASDAQ:PNFP) Given Average Recommendation of “Moderate Buy” by Brokerages

Feb -06

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.00%)

6. Segments

Banking and Related Activities

Expected Growth: 13%

Pinnacle Financial Partners, Inc.'s 13% growth in Banking and Related Activities is driven by strategic acquisitions, expansion into new markets, and a focus on commercial lending. Additionally, the company's emphasis on customer relationships, digital banking capabilities, and cost management initiatives have contributed to its growth.

7. Detailed Products

Commercial Banking

Pinnacle Financial Partners offers commercial banking services to businesses, including cash management, treasury management, and lending solutions.

Consumer Banking

Pinnacle Financial Partners provides consumer banking services, including checking and savings accounts, credit cards, and personal loans.

Wealth Management

Pinnacle Financial Partners offers wealth management services, including investment management, financial planning, and retirement planning.

Mortgage Banking

Pinnacle Financial Partners provides mortgage banking services, including residential and commercial mortgage lending.

Insurance Services

Pinnacle Financial Partners offers insurance services, including property and casualty insurance, life insurance, and employee benefits.

Treasury Management

Pinnacle Financial Partners provides treasury management services, including cash management, wire transfers, and account reconciliation.

Investment Services

Pinnacle Financial Partners offers investment services, including brokerage services, investment advice, and retirement plan services.

8. Pinnacle Financial Partners, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Pinnacle Financial Partners, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.

Bargaining Power Of Customers

Pinnacle Financial Partners, Inc. has a large customer base, but customers have significant bargaining power due to the availability of alternative financial institutions.

Bargaining Power Of Suppliers

Pinnacle Financial Partners, Inc. has a diversified supplier base, reducing the bargaining power of individual suppliers.

Threat Of New Entrants

While there are barriers to entry in the financial services industry, new entrants can still pose a threat to Pinnacle Financial Partners, Inc. through innovative business models and digital platforms.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.77%
Debt Cost 4.31%
Equity Weight 68.23%
Equity Cost 9.40%
WACC 7.78%
Leverage 46.55%

11. Quality Control: Pinnacle Financial Partners, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Texas Capital Bancshares

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Value: 7.2

Growth: 5.2

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Momentum: 6.0

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Quality: 5.7

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Pinnacle Financial Partners

A-Score: 5.4/10

Value: 7.0

Growth: 7.4

Quality: 7.7

Yield: 2.0

Momentum: 2.0

Volatility: 6.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

91.23$

Current Price

91.23$

Potential

-0.00%

Expected Cash-Flows