Pinnacle Financial Partners Posts 11% Loan Growth as Merger Conversion Looms

Key Points

• Pinnacle reported 11% loan growth and 9% core deposit growth in the first three quarters after its merger with Synovus, while hiring 222 revenue producers and retaining 95% of them.
• The bank’s core and digital systems conversion is scheduled for March 12–15, after 15 months of preparation. Executives called it a key test and said they have planned mock conversions, added call center staff and prepared contingencies.
• Pinnacle generated about $20 million in revenue synergies year to date, mainly from capital markets activities, and expects a more material contribution in 2027.

Pinnacle Financial Partners NYSE: PNFP reported double-digit loan growth and continued banker hiring in the first three quarters following its merger with Synovus, while executives said a major systems conversion scheduled for March remains a key test for the combined bank.

President and CEO Kevin Blair said loans grew 11% and core deposits, excluding public funds, rose 9% in the first three quarters. The bank hired 222 revenue producers during that period and retained 94% of its overall workforce and 95% of revenue producers, he said.

Blair acknowledged investor concerns about integrating the two banks but said Pinnacle made organizational and operating decisions early. “We’re not at a finish line,” he said, adding that the company must continue to produce results quarter by quarter.

Hiring and deposit growth

Executives described recruiting experienced bankers as central to Pinnacle’s growth strategy. Blair said revenue producers must have at least 10 years of experience, and each hire must be validated by someone at the firm who has previously worked with the candidate.

The 222 revenue producers hired this year came from more than 100 financial institutions, Blair said. He added that some potential recruits are waiting until after the conversion to join, though he did not believe the number was large.

Blair said Pinnacle had previously discussed a hiring target of 250 to 275 and may reset its 2027 target following this year’s results. He also said average cash compensation for commercial bankers was about $300,000, up slightly from the prior year.

Chief Financial Officer Jamie Gregory said hiring was currently contributing more to growth than the broader economy. He said production spreads widened in the second quarter compared with the first and again in the third quarter, attributing the growth to bankers bringing over and expanding client relationships rather than the bank seeking volume through pricing.

Over the medium term, Gregory said Pinnacle expects core deposit growth and loan growth to be broadly in line. Blair said the bank sets individual loan and deposit targets for new bankers and monitors their progress, while also relying on specialized deposit teams to help fund lending.

Conversion preparations and revenue synergies

Blair said the core and digital systems conversion is scheduled for March 12 through 15. The bank has spent 15 months preparing, he said, and plans two mock conversions and additional testing. It has also added 140 call center agents to help respond to customer inquiries.

“Of course we’re nervous,” Blair said when asked about the conversion. He said the bank was taking additional precautions around services with significant customer impact, including payroll-related transactions, and had conducted contingency planning.

Gregory said Pinnacle had generated approximately $20 million in revenue synergies year to date, largely from capital markets activities such as syndication, arranger and swap fees. He expects a more material impact in 2027 and said new commercial treasury capabilities could support longer-term fee growth after the conversion and stabilization.

Dallas expansion and BHG outlook

Blair said Pinnacle’s recent Dallas expansion was driven by the recruitment of two leaders rather than a decision to enter the market on geography alone. He said the bank believes the operation could build $3 billion to $5 billion in balance sheet over five years and break even within two years.

Gregory said BHG had delivered strong production, profitability and credit performance. Following a strategic review, BHG reduced the share of loans distributed through its commercial bank platform to less than 20% in the third quarter, he said.

That shift and stronger profitability give BHG flexibility to consider strategic alternatives, Gregory said, although he added that he did not see anything imminent. He said he expects strong but steady growth from the business rather than a repeat of the sharp increase seen earlier in the year.

About Pinnacle Financial Partners (NYSE:PNFP)

Pinnacle Financial Partners, Inc is a bank holding company headquartered in Nashville, Tennessee. Through its primary subsidiary, Pinnacle Bank, the company provides banking and financial services to businesses, professionals, entrepreneurs and individuals.

Its offerings include commercial and consumer loans, deposit accounts, treasury and cash-management services, mortgage lending, investment and wealth-management services, trust services and insurance solutions. Pinnacle emphasizes relationship-based banking and serves clients through offices and financial professionals in Tennessee and selected markets in the Carolinas and Virginia.

Founded in 2000, Pinnacle has expanded from its Nashville base into a broader regional banking franchise through organic growth and acquisitions.

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