Tweaking Estimates After Recent Update into 2Q26 Earnings

Research evidence excerpt

Tweaking Estimates After Recent Update into 2Q26 Earnings

NFP is ahead of expectations around these two important metrics, and is running at Book Value/Share US$91.42

plan around employee retention as well. We are not sure how long the market will wait Tang. Book/Share $61.18

to trust the successes of the combined platform, but we do believe that the stock is Price/Book 107%

currently priced for expected failure. Therefore, we see upside to the fwd multiple (we Price/Tang.Book 161%

52-Week High / Low US$120.45 / US$81.08 remain below consensus in 2026/7) and think that even with only modest success that

Avg Daily Vol (000) 1,347

the shares can see the multiple expand to a more peer-like 10.5x on 2027, over the next Div Yield 2.04%

12-months. Clearly, this multiple expansion will take time, and has not yet begun, and Total Assets ($mil) 122,766

we do think that it could take longer than we would like - especially with the conversion Shares Out (mil) 151.1

still set for 1Q27. Div (ann) US$2.00

Fiscal Year End Dec

• Moving Parts Around Model Updates - In updating our model to the new guidance Price Performance - 1 Year

delivered on 6/9/26, we took down our NIM expectations, which also resulted in a slightly

lower NII trajectory - even in spite of stronger loan growth. That said, given market USD

concerns around competition and potential aggressiveness within the PNFP platform, 130

we think the few bps of incremental downside in the NIM is actually a positive relative to 120

overall market fears. Additionally, we also took down our expectations for non-interest

revenues, largely on lower BHG loan sales. Offsetting these declines in part (2026) and 110

in full (2027) were lower expenses (given success in extracting cost saves and likely 100