During today's quarterly earnings call, we will reference the slides and press release that are available within the investor relations section of our website, pnfp.com. We have remained focused on the leverage points that help us deliver on our commitments and continue a long and proud heritage of growth and success. For the second quarter of 2026, we reported diluted EPS of $2.07, an adjusted diluted EPS of $2.50, excluding $82 million of pre-tax adjusted items. Year-to-date adjusted EPS is up 26% versus the same period last year.
We are maintaining our 2026 guidance with our year-to-date performance giving us added conviction in the ranges we set. Starting with the balance sheet, loans grew $2.9 billion linked quarter, ahead of our expectations. This strong growth in earning assets, up 4% quarter-over-quarter, led to 2% growth in net interest income. This is the broad-based, high-quality growth that has long been the hallmark of this firm, and the combination is making it even more powerful.
Fee income is another area where our differentiation shows up with double-digit year-to-date growth on a combined firm basis. Core banking, wealth management, and capital markets all posted strong year-over-year growth. On the expenses, we stayed disciplined while continuing to invest in the areas where we see the greatest opportunity to accelerate long-term growth. As expected, charge-offs remain low and NPAs declined this quarter to 50 basis points.
| Metric | Period | Current guidance |
|---|---|---|
| Period-end loan growth | FY2026 | 9%-11%, tracking the top end of the range |
| Total deposit growth | FY2026 | 8%-10%, middle of the range |
| Net interest margin | FY2026 | 3.44%-3.47% |
| Adjusted revenue | FY2026 | $5.0 billion-$5.2 billion, trending to $5.05 billion-$5.1 billion |
| Adjusted non-interest expense | FY2026 | middle of $2.675 billion-$2.775 billion |
| Adjusted effective tax rate | FY2026 | middle of 20%-21% |
| Net charge-offs | FY2026 | 20-25 basis points |
| CET1 ratio | FY2026 | building toward the 10.25% target; ~30 bps of capital generated per quarter before RWA growth |
| Merger cost-synergy realization | FY2026-FY2027 | approximately 40% realized in 2026, on track for ~75% in 2027 |
| Revenue synergies | FY2026 | approximately $20 million in 2026 (~$10 million, or 50%, realized year-to-date) |
| Third-quarter expense step-up | Q3 2026 | approximately +$20 million linked-quarter (BHG and personnel) |
| Average cash balances | 2H 2026 | $4.0 billion-$4.5 billion |
| Expense growth | FY2027 | high-single-digit, less the incremental 35% of $250 million in synergies |
| Metric | YoY | Note |
|---|---|---|
| Adjusted diluted EPS | +25% YoY, +5% QoQ ($2.50 adjusted; $2.07 GAAP) | Broad-based balance-sheet growth and core client fee income, with zero net merger-accounting impact |
| Period-end loans | +14% annualized QoQ (+$2.9 billion) | Broad-based C&I lending across geographies plus specialty-lending strength |
| Net interest income | +10% annualized QoQ ($956 million) | 4% growth in earning assets outpaced a modest 9 bps NIM decline |
| BHG equity-method income | $24 million (down QoQ) | BHG shift toward securitizations and whole-loan sales, in line with expectations |
| Net charge-offs | 22 basis points | Disciplined underwriting and lower reserve on new production; NPAs improved to 0.5% |
| Adjusted ROATCE | 17.7% year-to-date | Strong core profitability approaching the 18% 2027 target |
| Revenue producers hired | +14% vs combined Q2 2025 (74 added, +48% QoQ) | Elevated talent dislocation and a referral-based recruiting model working across the full franchise |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Synovus merger integration | Merger closed January 1, 2026; first combined quarter ahead of plan | Six months in; ~19% YTD adjusted-EPS accretion vs standalone consensus, ~40% cost synergies in 2026, on track for operational/brand conversion in March 2027 | — |
| Revenue producer hiring model | 50 producers added in Q1 2026 | 74 added in Q2 (+48% QoQ), 124 YTD with ~50% from core Synovus markets, 34 more in early July; on track for a record 250, 94% retention | — |
| Net interest margin trajectory | 3.53% in Q1 2026 | 3.44% in Q2 (down 9 bps); full-year guide 3.44%-3.47% with a stated ~3.30% floor and continued high-single-digit NII growth | — |
| BHG strategy | Shift toward securitizations/whole-loan sales flagged in Q1 | $24 million equity-method income; near-term revenue optimization accepted to improve long-term profitability | — |
| Up-market and shared national credit lending | SNC historically under 10% of loans | SNC rose to ~12.5% of loans on lead-arranger activity and prefunding; management expects it to revert below 10% | — |
| Capital management and buybacks | CET1 9.8% at Q1 | CET1 9.93%, building toward 10.25%; share repurchases described as a real possibility in 2027 once the target is reached | — |
| Technology and AI | Convert then innovate | ~20 AI engineers and 40 power users deployed internally; post-conversion roadmap focused on commercial treasury, payments and ERP integration | — |