On the heels of its $8.6 billion merger with fellow financier Synovus, Pinnacle Financial Partners plans to boost its equipment finance business with new markets, customers and operational opportunities. 

The combined bank holds $117.2 billion in assets and will be branded as Pinnacle in 2027, according to a Jan. 2 Pinnacle release. The merger creates a significant expansion runway, particularly as Pinnacle introduces equipment finance into Synovus’ footprint, Kris Foster, president of equipment finance and specialty industries, tells Equipment Finance News during this episode of “The Dig” podcast. 

“They didn’t have an equipment finance product, so it’s absolute greenfield for us and a new opportunity,” he says. “One of the key things with this merger is there’s only 6% overlap, so we fit really well together as you look at the geography.” 

Equipment finance remains central to Pinnacle’s commercial banking strategy, contributing more than 15% of new loan growth, Foster says.  

Finding success with new platform 

Pinnacle’s combined equipment finance platform provides both volume and specialization, combining structured lending expertise with asset-backed discipline, setting it apart as banks focus on risk-adjusted returns, Foster says. 

“Understanding that asset and bringing that asset discipline is a huge piece to our puzzle and helps mitigate losses,” he says. 

With the equipment finance platform growing to more than $2 billion in assets in just over four years, Pinnacle is also investing in technology to support scale, Foster says. 

“We’re in the process of building out additional capabilities with our APIs and integrating those into different platforms so we can better understand our data and make better decisions,” he says. “We’re looking at a lot of different AI products, we’re leveraging CoPilot, we’re using AI to help identify on the sales side some customers.” 

Despite increased investment in technology, Pinnacle’s edge is service rather than scale, Foster says. 

“We can never outspend the big guys, and I can’t get into a dollar-for-dollar technology war with the big banks out there,” he says. “We’re going to invest in [technology], we’re going to put into … that client experience and make sure we take care of our customers.” 

Equipment finance borrowers are aiming to extend their financing terms as higher interest rates, inflation and tariffs drive up costs. 

Borrowers are looking to meet cash flow requirements by extending terms up to 84 months, Rick Pierman, vice president of commercial finance business development of equipment financier Pathward, tells Equipment Finance News during this episode of “The Dig” podcast. 

“Historically, something that might have been financed on a 60-month transaction might be trying to stretch to 72 or 84 months, but we'll look at that and make sure that the underlying collateral will support that extra amortization,” he says. 

On the plus side, the Federal Reserve’s interest rate cuts and lender interest rate reductions continue to move the market closer to previous levels, Pierman says. 

“The rates have come down really over the past year, and we were at such a low-rate environment through the COVID epidemic,” he says. “We're probably right at about where we were pre-COVID time frame.” 

Growth opportunities 

Pathward is also seeing growth through increased demand for financing system automation and refinancing options for high-interest-rate transactions, Pierman says. 

“We're seeing a lot of our end users looking to automate some of their legacy processes, and so there's capital investment going into automation,” he says.  

“We're also seeing a lot of refinance opportunities. We are seeing deals that were financed two to three years ago in a higher-rate environment, and they're looking to better position themselves from a cash flow perspective.” 

The specialty finance market is experiencing a correction as different credit cycles normalize after a year of uncertainty.  

Specialty finance business lines follow different credit cycles based on sector, but sectors such as rental are seeing the most pressure due to an industrywide correction as “over-fleeted” clients drive higher credit stress and more nonperforming loans, 1st Source Corp. President and Chief Executive Andrea Short tells Equipment Finance News during this episode of “The Dig” podcast. 1st Source Corp. is the parent company of 1st Source Bank. 

“Equipment values are holding, and so I think that that is really helping to mitigate that credit risk,” she says. “We have strong reserves, and that allows us to work with our clients through times that are tough, and so helping them deeply, helping them run their business, make decisions on locations, that type of thing that helps mitigate that credit risk.” 

Meanwhile, the South Bend, Ind.-based bank expects its strongest growth in 2026 to come from its renewable energy division as companies rush to secure tax credits before they expire, Short says.  

In terms of specialty finance, construction equipment represents the strongest growth opportunity, while auto rental and trucking are likely to see more moderate or limited demand, she adds. 

“The strongest [specialty finance sector] is construction equipment, and it's the replacement, it's the new contracts, and it's the road building,” she says.   

In contrast, the truck segment — primarily medium- and heavy-duty over-the-road trucks and trailers — is showing the greatest slowdown, driven by softer demand as well as tighter credit standards and greater selectivity in what the bank is willing to finance, Short says Still, truck represents 1st Source’s smallest portfolio, minimzing the impact of the moderation. 

Adjusting risk management approach 

In addition, the bank manages risk relative to how different assets hold value and by closely monitoring collateral values, equipment performance and asset locations based on years of expertise tracking resale behavior, Short says. 

“That's easier to do with aircraft than it is with an excavator, but there are things we can do on all types … of equipment to really monitor where it's being used and where our collateral is actually located,” she says. “I think that we've gotten better at that as technology has improved over the years,” 

Tune in to the newest episode of “The Dig” to hear from Short about how she’s taking over 1st Source Corp. and 1st Source Bank, and preserving the organization's long-standing culture amid modernization, economic forces affecting the specialty finance group and risk management. 

Register here for the free Equipment Finance News webinar “Tech-driven risk management: How innovation is reshaping equipment finance” set for Tuesday, Dec. 9, at 11 a.m. ET.  

Long-term commercial and equipment financing success depends on rigorous cost control, outstanding client service, organic growth, and strong capital reserves, as the industry continues to evolve.

Success requires maintaining rigorous cost control alongside outstanding client service, 1st Source Corp. Chairman and Chief Executive Christopher Murphy III tells Equipment Finance News in the second of a two-part episode of “The Dig” podcast. 1st Source Corp. is the parent company of 1st Source Bank. 

“Rigorous cost control and outstanding client service are very important elements of making it work over the longer term,” he says. Other essential elements include giving second chances, ensuring employees develop and master necessary skills, and resisting flashy distractions, he adds. 

Murphy is stepping down as CEO of 1st Source after nearly 50 years, becoming executive chairman while Andrea Short becomes president and CEO of both the corporation and the bank on Oct. 1. Additionally, Kevin Murphy, Chris Murphy III’s son and current executive vice president and chief digital officer, will become president of the bank. 

Managing growth, prioritizing relationships 

Meanwhile, 1st Source has focused on organic growth rather than acquisitions, prioritizing shareholder value through disciplined cash flow analysis and long-term relationships, often passing on overpriced deals in favor of growing one customer at a time, Murphy says. 

“The key is to be patient, just keep growing and be patient, and when it's time to take your foot off the gas pedal, get it off the gas pedal, and apply the brake” he says. “There's nothing wrong with that.” 

Over the years, 1st Source also exited verticals that didn’t fit, including environmental equipment and aircraft financing, but preserved long-term customer relationships, often working through setbacks until clients repaid in full, Murphy says.  

“We were strong enough in working through that period without the regulators coming down and telling us how to do it, so having strong capital reserves is really critical,” he says. “When I look forward, making sure that we are in this where both Andrea and Kevin come in, as well as Brett Bowers, our chief financial officer, making sure we have the right strength in our balance sheet to withstand hard hits in the economy, whether they're black swan events or otherwise, because they will come.” 

Tune in to the newest episode of “The Dig” to hear Murphy discuss his leadership philosophy, relationship building, changes in equipment finance, and opportunities and challenges facing the industry in the next decade. 

As digitalization and AI reshape the equipment finance industry, it remains essential for lenders to preserve and share the expertise built over years of experience. 

While digitalization speeds up processes, it cannot replace the need for personal expertise in equipment finance, as success still requires understanding the equipment, its use, collateral value, cash flow patterns and business seasonality to avoid costly mistakes, 1st Source Corp. Chairman and Chief Executive Christopher Murphy III tells Equipment Finance News during this episode of “The Dig” podcast. 1st Source Corp. is parent company of 1st Source Bank. 

“It's a multi-varied equation that you've got to be running with, but you’ve got to have the human element there,” he says. “You can't just let an AI tool do that, because it's not going to go out and collect it.” 

Digitalization and AI accelerate decision-making but also amplify mistakes, requiring lenders to manage client concerns and closely track equipment values, depreciation trends and economic signals, Murphy says.  

Anticipating these factors helps identify early warning signs and better guide customers through market shifts. It’s also important for industry veterans to prepare younger leaders for them, he says.  

“It's really counseling … be more intentional about talking about it, thinking about it, looking at it, and then moving forward,” he says. 

Leadership transition 

Murphy, nearing 80, is transitioning leadership of publicly traded 1st Source Bank after 50 years, and he aims to continue the legacy built on long-term focus, quality earnings and a family-oriented culture through his counsel as he hands the reins to Andrea Short. 

Short is the president of 1st Source Corp. and CEO of 1st Source Bank, and will become president and CEO of the corporation in addition to being chief executive at the bank, effective Oct. 1. Murphy will become executive chairman of both entities. Murphy’s son, Kevin Murphy, executive vice president and chief digital officer for the bank, will become bank president. 

Evolving finance landscape 

Meanwhile, as the equipment finance undergoes additional changes with new technology and evolving equipment use, experienced executives should caution future leaders against the risks of easy money, as over-leveraging and weak support from third-party financiers can leave clients vulnerable when markets shift, Murphy says. 

“Don't overreact and make sure you're close to the customer, counsel them through it, and be careful when the customer is borrowing somewhere else and you've got other lenders who don't know what they're doing or are going to react in a wrong way,” he says. “It's important you know who you're financing with — not only what you're financing — so that you've got people who are experienced on the other side, experienced at working through problems.” 

Tune in to the newest episode of “The Dig” to hear from Murphy about the lessons he’s learned after nearly 50 years in financial services, the growth of 1st Source Bank, preparing for succession, navigating industry changes, and challenges and opportunities facing the equipment finance and specialty finance industry. 

Flexible financing partnerships between dealers, lenders and OEMs; customized financing solutions; investing in scalable integrated technologies; and customer education are keys to navigating current and future market conditions. 

As equipment dealers, lenders and OEMs continue to look for the best methods to navigate market uncertainty, rising delinquencies and other concerns, developing flexible relationships between lenders and distributors represents a key component to successful operations, Kirk Mann, executive vice president and head of transportation at Mitsubishi HC Capital America, tells Equipment Finance News on this episode of “The Dig” podcast.  

To maximize their lender relationships, dealers and OEMs should: 

• Spend time with your lender to build a strong relationship; 
• Allow lenders to ask as many questions as they need; 
• Provide thorough answers — even to questions they haven’t thought of yet; and 
• Ensure mutual understanding to strengthen trust and communication. 

In addition, offering customized financing solutions as a part of the sales process represents a great method of ensuring that dealers, lenders and OEMs can continue to meet buyers’ needs, Mann says. 

“Dealerships with the F&I manager or with a lender that is lending directly into a fleet environment, making sure that those financing solutions are a part of that equipment sales process; it helps,” he says. “It helps to ease the customer's adoption because they can afford it.” 

Ninety percent of respondents to a May 30-released Mitsubishi HC Captial America survey of the company’s construction and transportation clients stated they expected to use financing for new equipment, indicating a significant need for financing solutions, Mann says. 

Third, investing in scalable, integrated technologies and partnering with platforms that provide full supply chain visibility can greatly benefit medium-duty truck buyers who often require upfitting and additional components, Mann says.  

And finally, equipment sellers must effectively educate customers on the ROI of modernization and build strong relationships with financing partners to support tailored financing solutions. 

Tune in to the newest episode of “The Dig” to hear from Mann about trends in equipment financing, supply chain disruptions, customer needs, new technologies and managing risks. 

Register here for the free Equipment Finance News webinar “Technologies to Advance Your Equipment Financing Business” set for Thursday, July 17, at 11 a.m. ET.      

Podcast: Ignite Attachments targeting Amazon-like model for attachments 

Listen as ‘The Dig’ speaks with OEM’s Trisha Pearson 

Category: Material handling 

As equipment dealers and lenders expand their product offerings to diversify and meet customer needs, attachment and implement Ignite Attachments is adopting an Amazon-like approach to distribution and service. 

The rise of direct-to-consumer and e-commerce reflects growing consumer comfort with purchasing high-ticket items online, which is something the equipment attachments and implements industry can adopt, Trisha Pearson, director of business development at the Moorhead, Minn.-headquartered OEM, tells Equipment Finance News on this episode of “The Dig” podcast.  

“Websites like Amazon are also showcasing that it needs to be a relatively easy experience in doing so, and the acquisition time needs to be fast,” she says. “Although our industry, some may consider it to have been stagnant or static for a number of years, and there's a lot of our competitors who their value prop is, ‘we've been here, you can trust us,’ that's not us.” 

Ignite aims to partner with non-traditional third parties to integrate more payment and financing tools to make it easier for customers to search, buy and finance equipment online amid today’s economic challenges, Pearson says. 

“Today we have one third party plugin, it's called Credit Key, and it offers a buy now, pay later option for those B2B transactions, which is a lot of our transactions,” she says. “We're looking to expand that offering as folks are becoming more familiar in their shopping on other websites with some of those payment plugins and offering flexible ways to pay, so we want to make it easy for people to acquire our equipment in a way that's right for them.” 

In addition to adopting an Amazon-like approach to equipment attachment purchasing, Ignite also adopted an Amazon-like approach to the supply chain, opening distribution centers in Atlanta and Reno to make it easier and faster for their products to get to their destination, Pearson says. 

“Sites like Amazon are training folks that acquiring something that they purchase within two days is an expectation,” she says. “That's difficult in [a less-than-truckload] delivery world, but having availability and fast acquisition for the person who is diversifying their business and buying that next attachment to do so is really important to us.” 

Tune in to the newest episode of “The Dig” to hear from Whorton about trends in agriculture equipment financing, managing residual value, adapting to customer's needs, future trends and empowering the next generation of farmers. 

Increased farm income pressures have led to increased demand for farm equipment leasing as farmers and OEMs look to find a balance in the market. 

Farmers continue to navigate farm income pressures caused by tariffs and rising prices, Joe Whorton, director of marketing at Duluth, Geo.-headquarter global agriculture equipment manufacturer Massey Ferguson, tells Equipment Finance News on this episode of “The Dig” podcast. 

“There's no doubt that net farm income continues to be tight, and so you've got these multiple years of inflationary pressure, you've got elevated input costs, you've got high interest rates and then tariff uncertainty that's stressing farmer cash flow,” he said. “It's really driven a pretty high uptick in leasing activity recently, especially when you talk about mid-range and high horsepower tractors reaching its highest levels in the last five years.”  

Over the past five years, Massey, a subsidiary of AGCO has gone from leasing 15% to16% of farm equipment to nearly double that amount, Whorton said. 
“Into 2025, we're up at almost 30% and the industry is actually higher than that — the industry is almost up at 40%,” he said. “Some of the growth for Massey that we've seen in leasing is industry-based and uncertainty-based, and then a lot of the uptick has come in the fact that we've had our residual values continue to improve.” 

The increased focus on meeting farmers' needs and ensuring a positive user experience has led to rising residual values for Massey's high horsepower products, Whorton said. 

“As a positive consequence and outcome, we can now offer farmers some of the most aggressive lease deals in the industry, and so we've seen that segment grow a lot,” he said. “With all the uncertainty I mentioned before, allowing our farming customers to maybe de-risk themselves in the near term by having that fixed cost of ownership or fixed payments there.” 

Tariffs can be considered a business problem, knowing the fact that we are a 1.4 trillion industry, and I would say close to 30 to 40% of the equipment probably is going to be impacted in some way, shape or form. Right in terms of data, crane, we cut across data, CRM and AI, it's there in our name itself. So then, if we, if you have to break it down right data, for example. So when, when you come across tariffs, you want to ensure that you're talking about how you can go from a descriptive to a predictive to a prescriptive model when it comes to tariffs and their business impact, right? By that, what I mean is just to break it down in layman terms. Descriptive is what's happening with tariffs, right? Ai, data can actually give you those insights as to what's going on when you move from descriptive to predictive. You can use data to analyze what is going to happen right in the future, right? So with tariffs kicking in, how are things going to change? Right? That is something that you can go from a descriptive to a predictive phase, and then when you go to the next level, which is prescriptive, that's where the magic happens, right? Prescriptive is the phase wherein, if what you have predicted happens, what are you going to do about it? Right? What are the actions that you're going to take about it, right? So these are the three phases that we have in our mind as we view tariffs as a business problem, and then how does that manifest as a solution? Right? So you want to have the you want to have a better grip on demand, on supply, on pricing, and you want to have, like, competitive rates and stuff bearing in mind that demand, that supply and the pricing, right? So that is what it will enable equipment, equipment financers to achieve by using data. So that's the first part of the three areas that I wanted to cover, right data. AI, I mean, obviously with tariffs kicking in. I mean, more people will want financing, but it will be harder to get right. Yeah, yeah. So, so that's where AI comes in. You want to do credit scoring, you want to kind of mitigate your risk. You want to monitor your portfolio, right? You want to de risk your portfolio. So that's where AI can play a very active role, and you can ensure that those who are deserving, those who have the credit worthiness, do get approved, right in spite of the tariffs at at higher prices, and the credit scoring and the credit decisioning becomes much, much better, yeah, so that's the second perspective I have on the AI pillar. Out of the three pillars that I spoke about, right? We first covered data. Second, we spoke about AI. And the third thing, from our standpoint and our vantage point, is CRM, right. So by that, what I mean is customer relationship management. Think about software like Salesforce. Think about software like dynamics, right? So, if you are a broker, if you are a lender, if you are a lessor, if you are a captive, if you are a non captive, right? If you are an OEM, all of the businesses, right? They have their single source of truth, which is their customer relationship management. So in the age of tariffs, or when we are talking about tariffs and the impact to the equipment finance industry, we want to ensure that you are personalizing for your end customers, right. So the personalization can only happen if you have solid customer relationship management, right? So I'll give you an example. So if you are a manufacturer in the age of higher tariffs, right, you might offer like a 0% interest deal. You might offer like a longer payment plan, right? So if you want to compete with manufacturers, with OEMs, right? If you're a finance company, if you're a non bank, or a non captive or a bank, how do you compete with your with the OEMs who are offering these kind of deals when the tariffs increase? So in that case, right? You can have personalized finance deals chopped out using the power of your CRM, if you know your customer, your end customer, well, if you know your end customer better, right? You can use that for personalized finance, and that's what CRM can help you achieve, right, right? Quinn, right. So that's our vantage point. Hopefully that was helpful. I tried to break it down into simple terms, and I tried to break technology and AI down into three areas, right, our perspective on data, our perspective on AI and our perspective on CRM and how they come together, right, to ensure that you can have like competitive rates offered. You can have personalized finance offered, and you can compete. You can do better credit scoring. In credit risking, and you can run your business better, yeah,
no, that's super interesting. And I haven't even thought about the point of how, you know, as these tariffs kind of create these challenges, how, how? Yeah, using AI to make effective credit decisions, right? How that could become, you know, increasingly important. And one thing I was wondering, as far as the as far as like data collection to train the AI on, I'm wondering if there are any kind of previous global events that we can maybe turn to as examples, right, like, for instance, like the pandemic, right? Like the we did, obviously different, but some of those challenges that we saw there, as far as you know, supply chain disruptions, those are some, some like possible outcomes with the tariffs and stuff as well. So wondering if, you know, we if there's any opportunity there to use data from previous global events to help equipment finance navigate some of these challenges.
Great question. Quinn, and I mean, you got it spot on, right? We experienced supply chain issues. We experienced issues towards operational efficiency at the backdrop of COVID, which is relatively recent event, five to four years ago, right? So we have seen that. So, I mean, we might experience that right with with our country negotiating with other countries in terms of the reciprocal tariffs and stuff. I mean, a lot of decisions are going to be made. Manufacturers might shift countries, and they might set up factories elsewhere, hopefully here in the US. So we might experience based on the demand, right, based on certain types of equipment which is in high demand, to your point. And just like you mentioned, I think we are most likely to experience supply chain issues, disruption, operational efficiencies and stuff. So I think that's exactly where AI can can come in, and you can kind of optimize your inventory, right? So at data cream, for example, we get into discussions where you're talking about trunk stock in terms of mid devices, inventory management and stuff like that. So you want to ensure that high ticket items or items which a lot of businesses need, which are in high demand, are easier. I mean, you're not. They're not spending time sitting in, sitting on the shelf somewhere, right? Likewise. I mean, if you can, if you can understand that, hey, I mean, there's going to be this disruption, or the manufacturers is going to make some strategic decisions. I mean, that's where you can use AI and ensure that, basically, the operational efficiency is their supply chain issues are mitigated. So absolutely. I mean, I think we can look at those prior events like COVID, we can look at those macro scenarios, right to ensure that they are not entering into the same territory and they're not getting impacted by those same kind of issues due to tariffs. So, yeah, absolutely, I think it, I think it definitely can help, absolutely,
yeah, and I mean even tariffs too, right? Because, I mean Trump, he imposed tariffs during his first term as well. Obviously, maybe not to this, this degree, but, but, you know, I think there's some, some precedent there. And one thing I'm wondering, if, for maybe those, those lenders out there who maybe they just, they're new to AI, they haven't used it very much. And, you know, I think about some of those relatively simple AI tools out there, like, large language models, right? I'm wo...

With the rise of AI and automation in the equipment finance sector, lenders must shift to a digitally-focused infrastructure. 

Using technologies like AI to streamline processes, enhance transparency and improve customer service can help equipment financiers develop better solutions, Jeffry Elliott, founder and chief executive of Elevex Capital, tells Equipment Finance News on this episode of “The Dig” podcast.  

“We're trying to implement the latest and greatest technologies to create a more fast, flexible and transparent process, enable transactions to happen digitally, and utilize artificial intelligence to work with our customers,” he says. 

“We also pick up the phone and talk to people and go visit people, just old school way, but we're utilizing technology where customers want to utilize it, and making the process better, taking friction out of the equipment finance process.” 

Bank originations decreased more than 30% in January, while independent originations rose 9%, according to the Equipment Leasing and Finance Association’s CapEx Finance Index, released Feb. 26. The volatility in the equipment finance market between banks and independents creates an opportunity for independent lenders to take advantage, Elliott says. 

Technology helps equipment financiers obtain asset management information, such as transaction details and financial statements, faster and better organize the data, Elliott says.  

“You only have so much time in the day to do everything, so bringing those technology assets to bear and the big transactions are going to make them faster and more flexible and a better experience for the customer and meet their deadlines,” he says. “It also helps us in terms of risk on concentration risk.” 

Tune in to the newest episode of “The Dig” to hear from Elliott about implementing AI, balancing speed and efficiency, managing complex transactions with technology and advice for what he says may be a “choppy” environment ahead for equipment finance industry. 

Early Bird pricing for the third annual Equipment Finance Connect ends March 28. Taking place at the JW Marriott Nashville on May 14-15, 2025, this is the only event for both equipment dealers and finance providers. Learn more and register here.