v3.26.3
Segment Reporting
 9 Months Ended
Sep. 30, 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, 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 the balance 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 "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 and Corporate Other.
The following tables present certain financial information for each reportable business segment for the three and nine months ended September 30, 2026 and 2025 and as of September 30, 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 September 30, 2026
(in millions)BankingWealthTreasury and Corporate OtherPinnacle Consolidated
Net interest income$836 $10 $140 $986 
Provision for (reversal of) credit losses84 — 2 86 
Net interest income after provision for credit losses752 10 138 900 
Core banking fees84 — 12 96 
Wealth management revenue4 84 — 88 
Capital markets income17 — — 17 
Total loan sales and servicing8 — — 8 
Other non-interest revenue32 — 85 117 
Total non-interest revenue145 84 97 326 
Salaries and other personnel expense220 50 128 398 
Net occupancy, equipment and software expense39 1 61 101 
Other operating expense(1)(2)
66 8 176 250 
Total non-interest expense325 59 365 749 
Income (loss) before income taxes$572 $35 $(130)$477 
Three Months Ended September 30, 2025
(in millions)BankingWealthTreasury and Corporate OtherPinnacle Consolidated
Net interest income$359 $2 $36 $397 
Provision for (reversal of) credit losses31 — 1 32 
Net interest income after provision for credit losses328 2 35 365 
Core banking fees27 — 7 34 
Wealth management revenue6 32 — 38 
Capital markets income4 — — 4 
Total loan sales and servicing5 — — 5 
Other non-interest revenue1 — 65 66 
Total non-interest revenue43 32 72 147 
Salaries and other personnel expense119 21 45 185 
Net occupancy, equipment and software expense19 — 26 45 
Other operating expense(1)(3)
25 1 47 73 
Total non-interest expense163 22 118 303 
Income (loss) before income taxes$208 $12 $(11)$209 
(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 $52 million of the total merger-related expense of $56 million incurred during the three months ended September 30, 2026.
(3) Treasury and Corporate Other includes $8 million in total merger-related expense incurred during the three months ended September 30, 2025.
Nine Months Ended September 30, 2026
(in millions)BankingWealthTreasury and Corporate OtherPinnacle Consolidated
Net interest income$2,398 $30 $447 $2,875 
Provision for (reversal of) credit losses220 — 4 224 
Net interest income after provision for credit losses2,178 30 443 2,651 
Core banking fees247 — 33 280 
Wealth management revenue12 245 — 257 
Capital markets income53 — — 53 
Total loan sales and servicing27 — — 27 
Other non-interest revenue42 1 197 240 
Total non-interest revenue381 246 230 857 
Salaries and other personnel expense646 149 377 1,172 
Net occupancy, equipment and software expense120 4 176 300 
Other operating expense(1)(2)
185 26 740 951 
Total non-interest expense951 179 1,293 2,423 
Income (loss) before income taxes$1,608 $97 $(620)$1,085 
Nine Months Ended September 30, 2025
(in millions)BankingWealthTreasury and Corporate OtherPinnacle Consolidated
Net interest income$1,062 $8 $73 $1,143 
Provision for (reversal of) credit losses71 — 2 73 
Net interest income after provision for credit losses991 8 71 1,070 
Core banking fees78 — 20 98 
Wealth management revenue15 88 — 103 
Capital markets income11 — — 11 
Total loan sales and servicing17 — — 17 
Other non-interest revenue7 — 133 140 
Total non-interest revenue128 88 153 369 
Salaries and other personnel expense344 59 134 537 
Net occupancy, equipment and software expense56 — 75 131 
Other operating expense(1)(3)
69 4 123 196 
Total non-interest expense469 63 332 864 
Income (loss) before income taxes$650 $33 $(108)$575 
(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 $371 million of the total merger-related expense of $382 million incurred during the nine months ended September 30, 2026.
(3) Treasury and Corporate Other includes $8 million in total merger-related expense incurred during the nine months ended September 30, 2025.
September 30, 2026
(dollars in millions)BankingWealthTreasury and Corporate OtherPinnacle Consolidated
Loans, net of deferred fees and costs$88,061 $47 $1,700 $89,808 
Deposits$89,765 $3,050 $10,221 $103,036 
Full-time equivalent employees5,029 608 2,939 8,576 
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