Pinnacle Financial Partners (PNFP) is trading higher today after investors digested the company’s first-quarter 2026 update, which was the first quarter reflecting the combined organization following the Synovus merger that closed on January 1, 2026. While reported diluted EPS was $0.89, results were heavily affected by merger-related items, and the company emphasized adjusted diluted EPS of $2.39.

The quarter showcased operational momentum in the combined franchise: period-end loans were $85.2 billion and period-end deposits were $100.1 billion, with management describing organic growth as substantial. Net interest margin expanded 26 basis points versus the prior quarter to 3.53%, driven primarily by purchase accounting accretion and fixed-rate asset repricing, reinforcing the near-term earnings power story as integration progresses.

The release highlighted that merger-related expenses were significant in the quarter, including equity acceleration costs, which weighed on reported profitability. Even so, the company indicated that a large portion of expected 2026 expense synergies were realized in the first quarter, a datapoint that can boost confidence that integration is tracking ahead of schedule while revenue and balance-sheet growth remain intact.

Investors will be watching whether loan and deposit growth holds up as integration continues and whether margin strength persists as purchase accounting benefits normalize. Credit trends are also in focus given the larger combined balance sheet, with attention on nonperforming assets and charge-offs as the bank works through specific problem credits flagged in the quarter.