Pinnacle Financial Partners Inc (PNFP.K): 2Q26 Review - Solid Loan Growth, NIM Path Glides Lower

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Pinnacle Financial Partners Inc (PNFP.K): 2Q26 Review - Solid Loan Growth, NIM Path Glides Lower

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24 Jul 2026 05:00:00 ET │ 14 pages

Pinnacle Financial Partners Inc (PNFP.K)

2Q26 Review - Solid Loan Growth, NIM Path Glides Lower

CITI'S TAKE

Buy Results this quarter were largely what we had anticipated - healthy loan

growth, moderate new money spreads, and a minor move lower in NIM. Price (23 Jul 26 16:00) US$99.81

While spread compression was a little more pronounced (and the guide) vs Target price US$125.00↓

our past assumption (previously assumed 3.40% by mid-27), we think from US$126.00

investors will start to focus on loan growth and NII trends (rather than LQ Expected share price return 25.2%

NIM compression fears). While fee income was a little softer than what we Expected dividend yield 2.0%

expected, we anticipate a rebound in 2H26. Credit continues to perform

Expected total return 27.2% well and the seasonal deposit base (munis, via SNV footprint) will likely

Market Cap US$15,082M support NIM in 2H26. We continue to see a very positive risk/reward skew

- but are cognizant that merger deals typically lag peers until (if not after)

the systems conversion, which is early next year. Our EPS assumptions

changed modestly; tweaked our TP to $125 (-$1). Benjamin GerlingerAC

+1-212-816-3538

Estimate Changes — We refreshed our model for the quarter’s results and updated benjamin.gerlinger@citi.com

guidance. We kept our 2026E EPS (at $10.44) and moved 2027E EPS (from $12.03 Kaili Wang, CFA

to$12.06). We adjusted our loan growth up modestly, but trimmed our NIM outlook

+1-716-730-7408to account for the faster interest-bearing deposit growth. While these changes were

kaili.wang@citi.commodest, the net impact is a very minimal impact on our 2027 estimates.