Pinnacle to Eliminate NSF Fees for Consumers, Reduce Overdraft Fees

Rhea-AI Summary

Pinnacle Financial Partners announces changes to its overdraft services program effective Aug. 1, 2022. Key updates include:

• Elimination of the Non-Sufficient Funds (NSF) fee for consumer accounts.
• Reduction of NSF fees from $38 to $30 for business accounts.
• Overdraft fees cut from $38 to $30 for both consumer and business accounts.
• Introduction of a $15 overdraft cushion for consumers.
• Limiting overdraft charges from five to three per day for consumers.

These changes may lead to an estimated revenue loss of $3.0 million annually.

Positive

• Elimination of the NSF fee for consumer accounts, enhancing customer satisfaction.
• Reduction in overdraft fees fosters goodwill among clients.
• Introduction of a $15 overdraft cushion supports clients in managing finances.

Negative

• Projected annual revenue loss of approximately $3.0 million due to fee reductions.

Firm’s revamped overdraft services program goes into effect Aug. 1

NASHVILLE, Tenn.--(BUSINESS WIRE)-- Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) today announced that Pinnacle Bank will make significant changes this summer to its overdraft services program by completely eliminating one fee, lowering another and introducing features to further reduce the total cost incurred by its clients in a single day.

Effective Aug. 1, 2022, Pinnacle will:

• Eliminate the Non-Sufficient Funds (NSF) fee for returned items for consumer accounts. This fee occurs when Pinnacle returns a check or ACH transaction due to insufficient funds in the account.
• Reduce the NSF returned item fee from $38 to $30 for business accounts.
• Reduce the Overdraft fee for paid items from $38 to $30 for consumer and business accounts. This is the fee Pinnacle charges for the service to pay an item even though the client does not have enough funds in the account.
• Introduce an overdraft cushion of $15 for consumers. Consumer accounts can be overdrawn by up to $15 before an overdraft fee would be charged. As a result, clients won’t be charged an overdraft fee until payment of the first item that causes the account to be overdrawn by more than $15.
• Reduce the maximum number of Overdraft Paid Item charges per day from five to three for consumers. By reducing the fee and the number of charges consumer clients can receive in a day, the maximum possible charge per day will be reduced by more than 50 percent, from $190 to $90.

Pinnacle will continue its longstanding practice of offering Overdraft Protection for no charge. This service gives clients who opt in the ability to link accounts so funds can be transferred automatically to avoid an overdraft.

“We believe clients appreciate the service we provide by paying the item even when their balance is low, and fee reductions and the introduction of a cushion should make a significant difference to those who use it most often,” Pinnacle President and CEO Terry Turner said.

The firm anticipates that the changes listed above will result in revenue loss of approximately $3.0 million, on an annual basis, beginning Aug. 1, 2022.

“While Pinnacle doesn’t rely on fee income from overdraft and NSF as much as many other banks because we focus on commercial clients, we believe these changes will lead to even greater client loyalty as we continue to demonstrate our interest in their financial success,” Turner said. “We also think making these modifications to our fee practices will help prepare us for new regulations that may come in the future.”

Learn more about Pinnacle’s overdraft services program and available tools to help avoid fees altogether at PNFP.com/Overdraft.

Pinnacle provides a full range of banking, investment, trust, mortgage and insurance products and services designed for businesses and their owners and individuals interested in a comprehensive relationship with their financial institution. The firm is the No. 1 bank in the Nashville-Murfreesboro-Franklin MSA, according to 2021 deposit data from the FDIC, is listed by Forbes among the top 25 banks in the nation and earned a spot on the 2022 list of 100 Best Companies to Work For® in the U.S., its sixth consecutive appearance. American Banker recognized Pinnacle as one of America’s Best Banks to Work For nine years in a row and No. 1 among banks with more than $11 billion in assets in 2021.

Pinnacle owns a 49 percent interest in Bankers Healthcare Group (BHG), which provides innovative, hassle-free financial solutions to healthcare practitioners and other licensed professionals. Great Place to Work and FORTUNE ranked BHG No. 4 on its 2021 list of Best Workplaces in New York State in the small/medium business category.

The firm began operations in a single location in downtown Nashville, TN, in October 2000 and has since grown to approximately $39.4 billion in assets as of March 31, 2022. As the second-largest bank holding company headquartered in Tennessee, Pinnacle operates in 15 primarily urban markets across the Southeast.

Additional information concerning Pinnacle, which is included in the Nasdaq Financial-100 Index, can be accessed at www.pnfp.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220712005962/en/

Joe Bass

(615) 743-8219

joe.bass@pnfp.com

Source: Pinnacle Financial Partners, Inc.

FAQ

What changes are being made to Pinnacle Financial Partners' overdraft services?

Pinnacle is eliminating the NSF fee for consumer accounts, reducing NSF and overdraft fees, introducing a $15 overdraft cushion, and limiting daily overdraft charges.

When do the changes to the overdraft services program take effect for PNFP?

The changes will be effective on August 1, 2022.

How much revenue loss is expected from the overdraft service changes at PNFP?

Pinnacle Financial Partners anticipates a revenue loss of approximately $3.0 million annually.

What is the new overdraft cushion introduced by Pinnacle Financial Partners?

A $15 overdraft cushion allows consumer accounts to be overdrawn by that amount before an overdraft fee is applied.

What is the maximum number of overdraft charges allowed per day for consumers after the changes?

The maximum number of overdraft charges for consumers will be reduced from five to three per day.