President and Chief Executive Officer Kevin Blair will discuss our newly combined company's future and outline our 2026 financial outlook. Pinnacle's focus is producing strong, above-peer revenue, earnings per share, and tangible book value growth. These priorities enable us to attract and retain revenue producers at an outsized pace, fueling our continued growth. By pursuing these goals with passion and purpose across the entire franchise, we strive to continue to create exceptional value for our shareholders and set the standard for growth and profitability in the industry.
Legacy Pinnacle grew adjusted diluted earnings per share by 22% in 2025, while legacy Synovus grew adjusted diluted earnings per share by 28%. We are a competitive team committed to sustaining top quartile growth and profitability. These achievements highlight our strategic focus and reinforce a solid foundation for continued growth and operational excellence. This long-standing, successful practice helps teams align around core priorities, promotes cross-team collaboration, and establishes shared ambitions and goals around growth, hiring, pipeline activities, and service expectations.
Pinnacle's exceptional operating model is our foundation and the engine of our growth, guiding us through every opportunity and challenge. Pinnacle reported fourth quarter adjusted EPS of $2.24, which was stable quarter over quarter and up 18% from the prior year. Period-end loans grew at a strong 3% from the prior quarter and 10% year over year, driven by recruiting, particularly in our expansion geographic markets. Core deposit growth was also quite healthy at 3% quarter over quarter and 10% year over year.
| Metric | Period | Current guidance |
|---|---|---|
| Year-one merger cost savings realized | FY2026 | 40% or $100 million of annualized savings |
| Period-end loans | FY2026 | $91-$93 billion, up 9%-11% versus combined year-end 2025 |
| Total deposits | FY2026 | $106.5-$108.5 billion, up 8%-10% |
| Adjusted revenue | FY2026 | $5 billion-$5.2 billion |
| Net interest margin | FY2026 | 3.45%-3.55% |
| Adjusted non-interest revenue | FY2026 | approximately $1.1 billion, including $125-$135 million BHG investment income |
| Adjusted non-interest expense | FY2026 | approximately $2.7-$2.8 billion |
| Non-recurring merger-related and LFI expense (of $720 million total) | FY2026 | $450-$500 million to be incurred in 2026, excluding equity acceleration cost |
| Net charge-offs | FY2026 | 20-25 basis points |
| CET1 ratio target | FY2026 | 10.25%-10.75% |
| Quarterly common dividend | FY2026 | $0.50 per share beginning first quarter |
| Share repurchase authorization | FY2026 | $400 million program authorized |
| Effective tax rate | FY2026 | approximately 20%-21% |
| Revenue producer hiring goal | FY2026 | 250 total revenue producers |
| Estimated CET1 at end of first quarter 2026 | Q1 2026 | approximately 10% (9.8% including AOCI) |
| Metric | YoY | Note |
|---|---|---|
| Pinnacle adjusted EPS | +18% | Strong balance sheet growth and net interest income; full-year 2025 adjusted EPS up 22% |
| Synovus adjusted EPS | +16% | Healthy loan, core deposit, and non-interest revenue growth; full-year 2025 adjusted EPS up 28% |
| Pinnacle net interest income | +12% | Above-peer balance sheet growth driven by recruiting |
| Synovus net interest income | +7% | Fixed-rate asset repricing and funding cost benefits from core deposit growth |
| Pinnacle period-end loans | +10% | Recruiting, particularly in expansion geographic markets |
| Synovus period-end loans | +5% | Broad-based C&I lending |
| Pinnacle adjusted non-interest revenue | +25% | Higher service charges, wealth management revenue, and income from BHG |
| Synovus adjusted non-interest revenue | +16% | Broad-based growth including capital markets fees up 30% |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Merger integration and systems conversion | Deal announced, close pending | Closed January 1; both firms operating on legacy platforms until conversion in first quarter 2027, with key milestones and leadership decisions completed | — |
| Revenue producer hiring model | 217 hired across both firms in 2025 | Goal of 250 in 2026; legacy Synovus adopting the Pinnacle rapid-hiring model, expected to reach a similar pace by 2027 | — |
| Revenue synergies | $100 million-$130 million target over 2-3 years | Work started immediately (hold limits, hiring, capital markets cross-pollination); some benefit embedded in 2026 guidance, with confidence in exceeding the target | — |
| Capital deployment and buybacks | CET1 at record highs pre-close | $400 million buyback authorized; capital to be accreted early in 2026 with repurchases reassessed later in the year, targeting 10.25%-10.75% CET1 | — |
| BHG | $30 million Q4 fee revenue including a $5 million true-up | Strong production and outlook; $125-$135 million investment income guided for 2026 with continued focus on core business | — |
| Deposit pricing and betas | Quarter-on-quarter rate paid down about 30 basis points | Blended deposit beta ~48% in the easing cycle; 45%-50% beta expected for the rest of 2026 assuming two rate cuts | — |