Executive Summary

Q2 2025 delivered strong core performance: diluted EPS of $2.00 (adjusted also $2.00) vs $0.64 YoY, with total revenues of $505.0M (+15% YoY on an adjusted basis), NIM +2 bps QoQ to 3.23%, and adjusted PPNR +12% YoY to $218.7M .
Versus S&P Global consensus, EPS beat by $0.09*, while S&P’s “Revenue (actual)” shows a miss vs its $497.3M consensus*; company-reported total revenues were $505.0M and would imply a modest beat on that basis (definition differences) .
Management tightened 2025 outlook: raised loan growth low-end to 9–11% (from 8–11%), lifted fee income growth to 12–15% (from 8–10%), kept deposit growth at 7–10%, set NII growth at 12–13%, and updated expense outlook to $1,145–$1,155M; BHG earnings growth raised to ~40% (from ~20%) .
Operating momentum remains driven by talent-led market share gains: 38 revenue producers hired in Q2 (71 YTD) and de novo entry into Richmond; C&I loans grew 21.9% LQA; noninterest-bearing deposits rose $133M in Q2 .
Subsequent event/catalyst: announced an all-stock combination with Synovus (SNV) on 7/24/25 targeting 20%+ EPS accretion by 2027 and 2.6-year TBV earnback; closing expected 1Q26 (subject to approvals) .

What Went Well and What Went Wrong

What Went Well
- C&I-led loan growth and stable funding: Loans +10.7% LQA; C&I loans +21.9% LQA; noninterest-bearing deposits +$133M; NIM expanded to 3.23% .
- Broad-based fee momentum: Wealth management +16% YoY to $32.3M; BHG income up to $26.0M with originations reaching $1.5B and improving credit metrics; other noninterest income +$6.1M YoY (FV gains in equity investments) .
- Operating leverage and profitability: Adjusted PPNR +12% YoY; efficiency ratio improved to 56.7% from 74.0% YoY; ROTCE rose to 13.75% .
What Went Wrong
- Credit normalization: Net charge-offs rose to 0.20% (annualized) from 0.16% in Q1; NPAs increased to 0.44% of loans/ORE/NPAs (vs 0.30% YoY) .
- Expense pressure: Salaries/benefits +21% YoY, driven by headcount/incentive accruals (115% payout assumption); marketing/BD +29% YoY with new sponsorships and headcount-driven engagement costs .
- S&P revenue definition optics: S&P’s revenue “actual” ($480.7M*) came in below its $497.3M consensus*, despite company-reported revenues of $505.0M; creates headline “miss” under one definition .

Financial Results

Headline vs Estimates (S&P Global)

Metric	Q2 2025 Actual	Q2 2025 Consensus*	Surprise
Diluted EPS ($)	$2.00	$1.91*	+$0.09
Revenue (S&P-defined, $M)	$480.7*	$497.3*	-$16.6 (-3.3%)
Total Revenues (Company, $M)	$505.0	$497.3*	+$7.7 (+1.5%)

Values marked with * retrieved from S&P Global.

Notes: Company “total revenues” include net interest income + noninterest income (with noted adjustments). S&P’s “Revenue” methodology may differ, which can create optics differences vs the company-reported figure .

Quarterly Trend

Metric	Q2 2024	Q4 2024	Q1 2025	Q2 2025
Total Revenues ($M)	366.6	475.3	462.9	505.0
Net Interest Income ($M)	332.3	363.8	364.4	379.5
Noninterest Income ($M)	34.3	111.5	98.4	125.5
Diluted EPS ($)	0.64	1.91	1.77	2.00
Net Interest Margin (%)	3.14	3.22	3.21	3.23
Efficiency Ratio (%)	74.04	55.10	59.52	56.72
ROAA (%)	0.41	1.15	1.05	1.15
ROTCE (%)	4.90	13.58	12.51	13.75

Revenue Mix / Select Fees

Metric ($M)	Q2 2024	Q1 2025	Q2 2025
Net Interest Income	332.3	364.4	379.5
Noninterest Income	34.3	98.4	125.5
Wealth Mgmt Revenues	27.8	32.8	32.3
Income from BHG	18.7	20.4	26.0
Other Noninterest Income	41.8	38.0	47.9

KPIs and Balance Sheet

KPI	Q4 2024	Q1 2025	Q2 2025
Loans (EOP, $B)	35.49	36.14	37.11
Deposits (EOP, $B)	42.84	44.48	45.00
Noninterest-Bearing Deposits (EOP, $B)	8.17	8.51	8.64
Loan Growth (LQA, %)	13.7%	7.3%	10.7%
C&I Loans (EOP, $B)	13.82	14.13	14.91
ACL / Loans (%)	1.17%	1.16%	1.14%
Net Charge-offs / Avg Loans (Ann.)	0.24%	0.16%	0.20%
NPAs / Loans+ORE+NPAs (%)	0.42%	0.48%	0.44%
Loan Yield (%)	6.42%	6.24%	6.26%
Total Deposits Rate (%)	2.88%	2.58%	2.58%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Loan growth (YoY vs YE24)	2025	8–11%	9–11%	Raised low end
Total deposit growth	2025	7–10% (maintained)	7–10%	Maintained
Net interest margin	2025	Flattish with upward bias (prior tone)	Flattish with upward bias	Maintained
Net interest income (NII) growth	2025	Prior range not disclosed in filings reviewed	12–13%	Tightened lower end
Fee income growth	2025	8–10%	12–15%	Raised
Total expenses	2025	Not previously quantified in filings reviewed	$1,145–$1,155M	Introduced/updated
Provision to avg loans	2025	Prior high end higher (not quantified)	24–25 bps	Lowered upper end
Net charge-offs	2025	16–20 bps (implied prior)	18–20 bps	Raised low end by 2 bps
BHG earnings growth	2025	~20%	~40%	Raised
Common dividend/share	Quarterly	$0.24 (Q1)	$0.24 (Q2 declared)	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24 and Q1’25)	Current Period (Q2’25)	Trend
Hiring & market expansion	Robust hiring (35 in Q4), deposit growth strategies; Q1 added 33 producers, continued focus on organic expansion	Hired 38 producers (71 YTD); entered Richmond with seasoned team	Accelerating hiring; new markets additive
NIM & deposit betas	Q4 held NIM at 3.22% amid lower deposit costs; Q1 NIM 3.21%	NIM 3.23%; expect flat-to-up in Q3; deposit cost stabilization continues	Slight positive bias
Loan growth drivers	Q4/Q1 emphasized talent-led growth; loan growth guidance 8–11%	Raised low end to 9–11%; C&I +21.9% LQA	Strengthening outlook
CRE appetite & concentrations	Concentration reduction progress noted in late 2024	Appetite increasing within limits; writing new CRE (multi-family/industrial)	Re-engaging prudently
BHG trajectory	Q4 softer BHG income; Q1 improvement (production up)	Raised 2025 BHG growth to ~40% on better credit/costs/production	Materially improving
Macro/regulatory (tariffs, rate path)	Q1: uncertainty acknowledged	Cautious client sentiment; modeling one cut in Oct; regulators’ tone more positive	Cautious near term

Management Commentary

“Second quarter revenues increased by approximately 36.4% linked-quarter annualized over Q1 2025 and 21.8% over the same quarter last year … Loan growth for the second quarter was approximately 10.7% linked-quarter annualized” — Terry Turner, CEO .
“Our commercial and industrial (C&I) loan segment continued to show strong growth as these loans increased 21.9% linked quarter annualized … noninterest bearing deposits increased by $133.4 million in the second quarter” — Harold Carpenter, CFO .
“We experienced some margin expansion in the second quarter from the first quarter and expect continued expansion into the third quarter … BHG had another sound quarter, providing $26.0 million in fee revenues” — Harold Carpenter, CFO .

Q&A Highlights

Growth durability and M&A: Management reiterated preference for organic, talent-led share gains; M&A would be considered mainly in a succession context; de novo Richmond targeted to $1–1.5B over five years .
NIM drivers and betas: Expect flat-to-up NIM in Q3 with stable noninterest-bearing balances; deposit betas expected to hold, with more opportunity on cuts .
CRE re-entry: Writing new multi-family/industrial within concentration limits; expect balances to turn positive over coming quarters .
BHG outlook and mix: 2025 earnings growth view raised to ~40% (from ~20%); mix skew ~70/30 consumer/commercial, with consumer improvement more impactful .
Credit/provision: Net charge-offs guided to 18–20 bps for 2025 (+2 bps at low end); provision to average loans 24–25 bps using 70% base/30% pessimistic scenario .

Estimates Context

EPS: $2.00 vs S&P Global consensus $1.91* — a beat of $0.09.
Revenue: S&P “actual” $480.7M* vs $497.3M consensus* (miss); company-reported total revenues were $505.0M, which exceed S&P consensus, reflecting definitional differences in “revenue” .
Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Talent flywheel still compounding: hiring momentum and market extensions continue to drive outsized C&I growth and stable core deposits, supporting sustained NII expansion .
Margin has near-term upside bias: stable noninterest-bearing base and fixed-rate repricing support flat-to-up NIM in Q3; incremental upside requires a friendlier curve and deposit repricing on cuts .
Fees are an upside lever: 2025 fee growth raised to 12–15% (vs 8–10%) on wealth and BHG; this diversifies earnings and reduces reliance on spread in a flat curve .
Credit normalizing, but well reserved: NCOs drifting toward guided 18–20 bps; ACL/loans ~1.14% with NPAs at 44 bps — manageable with strong underwriting and mix .
Expense discipline vs growth: Higher incentive accruals and headcount expand OpEx, but revenue growth and efficiency improvements preserve operating leverage; 2025 expense range now set .
Guidance bias positive: Loan growth floor raised; fee guidance raised; NII tightened at 12–13%; BHG outlook doubled — estimate revisions likely trend higher on the fee/BHG side .
Strategic catalyst: The announced Synovus combination targets >20% EPS accretion by 2027 with a 2.6-year TBV earnback and positions the franchise for scaled Southeastern share gains (closing 1Q26, subject to approvals) .

S&P Global disclaimer: All values marked with * are retrieved from S&P Global.

Citations:

Q2 2025 8-K/Press Release data including revenues, NIM, PPNR, fees, BHG, loans, deposits, capital and KPIs: .
Q2 2025 earnings call transcript (guidance, themes, Q&A): .
Q1 2025 press release (prior quarter trend/guidance context): .
Q4 2024 press release (prior quarter trend): .
Synovus combination announcement (subsequent event/catalyst): .

PINNACLE FINANCIAL PARTNERS INC (PNFP)·Q2 2025 Earnings Summary