Equity Method Investment

3 Months Ended

Mar. 31, 2026

Equity Method Investments and Joint Ventures [Abstract]

Note 3 - Equity Method Investment

A summary of BHG's financial position as of March 31, 2026 and December 31, 2025 and results of operations as of and for the three months ended March 31, 2026 and 2025, were as follows:


	As of
	March 31, 2026		December 31, 2025
(in millions)
Assets	$	4,443	$	4,264

Liabilities	3,951		3,824
Equity interests	492		440
Total liabilities and equity	$	4,443	$	4,264


	For the Three Months Ended March 31,
	2026		2025
(in millions)
Revenues	$	302	$	241
Net income	$	69	$	44

At March 31, 2026 and December 31, 2025, technology, trade name, and customer relationship intangibles associated with Pinnacle Bank's investment in BHG, net of related amortization, totaled $6 million and $6 million, respectively.

During the three months ended March 31, 2026, Pinnacle Bank received cash distributions of $1 million from BHG compared to $25 million received during the three months ended March 31, 2025. Earnings from BHG are included in Pinnacle's consolidated tax return. Profits from intercompany transactions are eliminated. During the three months ended March 31, 2026 and 2025, Pinnacle Bank did not purchase any loans from BHG. At March 31, 2026 and December 31, 2025, there were $92 million and $104 million, respectively, of BHG joint venture program loans held by Pinnacle Bank. These loans were purchased from BHG by Pinnacle Bank at par, and BHG and Pinnacle Bank share proportionately in the credit risk of the acquired loans based on the rate on the loan and the rate of the purchase. The yield on this portfolio to Pinnacle Bank is between 4.50% and 6.00% per annum.