v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting
Note 12 - Segment Reporting
Pinnacle's business segments are based on the products and services provided or the clients served and reflect the manner in which financial information is evaluated by the chief operating decision maker. Pinnacle's CODM is the Chief Executive Officer. The CODM primarily utilizes revenue and non-interest expense directly attributable to a respective segment as well as actual versus expected credit losses when assessing performance and allocating resources.
During the first quarter of 2026 in connection with the Merger, Pinnacle reorganized its management reporting structure into two major reportable business segments: Banking and Wealth. The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to GAAP. As a result, reported segment results are not necessarily comparable with similar information reported by other financial institutions.
The Banking operating segment includes both commercial and consumer banking services and insurance. Commercial banking services are provided to corporations and other business clients and include a wide array of lending and cash management products. Consumer banking services include direct lending and depository services. Insurance provides insurance brokerage services to individuals and businesses covering corporate and personal property and casualty products, as well as group health and life insurance products. Additionally, the Banking segment provides treasury management solutions and payment processing services.
The Wealth segment provides a broad array of planning and advisory services, brokerage services, investment management, and trust services to individual, corporate, and institutional clients. Personal and institutional trust services provide advisory, investment management and trustee services to institutions, affluent and high-net-worth individuals. Family office services provide integrated, customized wealth management for ultra-high-net-worth, multigenerational families and other fee-only services such as estate administration, trust tax planning and custody. Brokerage services includes businesses that operate under the Company’s charter, through a broker/dealer and as a registered investment advisor. It generates revenue through fee-only arrangements, net interest income and other fee-only services (retail brokerage, capital markets, investment banking and financial advisory services) as well as Pinnacle Asset Management.
Functional activities such as treasury, technology, operations, marketing, finance, enterprise risk, legal, human resources, corporate communications, executive management, among others, are included in Treasury and Corporate Other. In addition, certain assets, liabilities, revenue, and expense not allocated or attributable to a particular business segment, such as Pinnacle's third-party consumer loans, loans held for sale, BHG, and consumer and small business card, as well as certain reconciling items in order to translate segment results that are based on management accounting practices into consolidated results are also included in Treasury and Corporate Other.
Pinnacle uses a centralized FTP methodology to attribute appropriate net interest income to its business segments. The intent of the FTP methodology is to transfer interest rate risk from the business segments by providing matched duration funding of assets and liabilities. The result is to centralize the financial impact, management, and reporting of interest rate risk in the Treasury and Corporate Other function, where it can be centrally monitored and managed. Treasury and Corporate Other charges (credits) an internal cost of funds for assets held in (or pays for funding provided by) each business segment. The process for determining FTP is based on a number of factors and assumptions, including prevailing market interest rates, the expected lives of various assets and liabilities, and the Company's broader funding profile.
Provision for (reversal of) credit losses is allocated to segments based on historical annualized expected loss rates attributable to the credit risk of loans managed by the segments during the period. By comparison, the consolidated provision for (reversal of) credit losses is determined based on the ACL model using methodologies described in "Part I - Item 1. Financial Statements - Note 1 - Basis of Presentation and Accounting Policies" herein, with the difference between the consolidated provision for (reversal of) credit losses and the business segments' provision for (reversal of) credit losses reflected in Treasury Corporate and Other.
The following tables present certain financial information for each reportable business segment for the three months ended March 31, 2026 and 2025 and as of March 31, 2026 and December 31, 2025. The application and development of management reporting methodologies is a dynamic process and is subject to periodic enhancements. As these enhancements are made, financial results presented by each reportable business segment may be periodically revised. Loan and deposit transfers occur from time to time between reportable business segments primarily to maintain the migration of clients and relationship managers between segments; however, prior period loan and deposit balances and any related net interest income and FTP are not adjusted for transfers.
Three Months Ended March 31, 2026
(in millions)BankingWealthTreasury and Corporate OtherPinnacle Consolidated
Net interest income (expense)$757 $8 $167 $933 
Provision for (reversal of) credit losses74 — 1 76 
Net interest income (expense) after provision for credit losses682 8 166 857 
Core banking fees81 — 10 91 
Wealth management revenue4 80 — 84 
Total loan sales and servicing10 — — 10 
Capital markets income18 — — 18 
Other non-interest revenue3 — 78 81 
Total non-interest revenue116 81 88 284 
Salaries and other personnel expense208 51 137 396 
Occupancy, equipment and software expense40 2 56 97 
Other operating expense(1)(2)
55 9 394 459 
Total non-interest expense303 62 587 952 
Income (loss) before income taxes$495 $28 $(333)$189 
Amounts may not total due to rounding
Three Months Ended March 31, 2025
(in millions)BankingWealthTreasury and Corporate OtherPinnacle Consolidated
Net interest income (expense)$349 $2 $14 $365 
Provision for (reversal of) credit losses16 — 1 17 
Net interest income (expense) after provision for credit losses333 2 13 348 
Core banking fees25 — 7 32 
Wealth management revenue5 28 — 33 
Total loan sales and servicing6 — — 6 
Capital markets income3 — — 3 
Other non-interest revenue2 — 21 23 
Total non-interest revenue41 28 28 97 
Salaries and other personnel expense111 19 42 172 
Occupancy, equipment and software expense18 — 24 42 
Other operating expense(1)
21 1 39 61 
Total non-interest expense151 20 104 275 
Income (loss) before income taxes$223 $10 $(63)$170 
Amounts may not total due to rounding
(1) Other operating expense for Banking and Wealth primarily includes, software platform expense, professional fees, and FDIC insurance and other regulatory fees.
(2) Treasury and Corporate Other includes $272 million of the total merger-related expense of $275 million related to the Merger.

March 31, 2026
(dollars in millions)BankingWealthTreasury and Corporate OtherPinnacle Consolidated
Loans, net of deferred fees and costs$83,642 $1 $1,554 $85,197 
Deposits$88,433 $2,477 $9,193 $100,103 
Full-time equivalent employees4,879 565 2,945 8,389 
December 31, 2025
(dollars in millions)BankingWealthTreasury and Corporate OtherPinnacle Consolidated
Loans, net of deferred fees and costs$37,985 $— $1,169 $39,154 
Deposits$42,339 $1,160 $3,902 $47,401 
Full-time equivalent employees2,367 250 1,093 3,710