NYSE$PNFP

Pinnacle Financial Partners Inc. · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Pinnacle Financial's earnings decreased due to increased provision for credit losses related to the COVID-19 pandemic, though loan and deposit growth and fee revenues exceeded expectations.

Pinnacle Financial Partners reported a decrease in net income per diluted common share to $0.37 for Q1 2020, compared to $1.22 for Q1 2019. The results were impacted by an $86 million increase in the allowance for credit losses due to the COVID-19 pandemic. However, the company saw growth in loans, deposits, and fee income.

  • Diluted EPS was $0.37, a decrease of 69.7% compared to Q1 2019.
  • Loans increased to $20.4 billion, reflecting year-over-year growth of 12.2%.
  • Deposits reached a record $21.3 billion, an increase of 15.4% from the previous year.
  • The company increased its allowance for credit losses by $86 million due to the COVID-19 pandemic.

Headline financials

Total Revenue

$263M

Previous: $240M+9.7%
EPS (adj)

$0.39

Previous: $1.24-68.5%
Efficiency Ratio

52.0%

No prior period
Return on Avg Assets

0.4%

No prior period
Net Charge-offs / Avg Loans

0.2%

Previous: 0.1%+150.0%
Capital Expenditures

$6.33M

Previous: $2.11M+200.2%
Free Cash Flow

$50.3M

Previous: $153M-67.2%
Net Income

$28.4M

Previous: $94M-69.8%
Operating Income

$26.7M

No prior period
Cash & Equivalents

$1.02B

Previous: $167M+512.7%
Total Assets

$29.3B

Previous: $25.6B+14.5%
Stock-Based Comp

$5.5M

Previous: $4.91M+12.0%

Revenue & EPS history

Pinnacle Financial · Revenue · Quarterly

$263M

Q1 2020+9.7%vs Q1 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Pinnacle Financial · $56.5M total across 4 segments · Q3 2025

  • Investment Services
    $23.9M+33.8%
  • Service Charges
    $18.3M+12.8%
  • Trust Fees
    $10.3M+23.1%
  • Insurance Commissions
    $4.02M+22.2%

Forward guidance

Pinnacle Financial anticipates further increasing its liquidity position during the second quarter and expects 2020 annualized expense growth to be in the low to mid-single digit percentage increases in comparison to 2019.

Tailwinds

  • Continuing to increase on-balance sheet liquidity position.
  • Expects minimal impact on net interest income from additional liquidity.
  • Targeting a cash incentive award payout of approximately 50 percent for 2020.
  • Focusing hiring plan on Atlanta buildout, key revenue producer adds, and critical operational positions.
  • Believe 2020 annualized expense growth will be in the low to mid-single digit percentage increases in comparison to 2019.

Headwinds

  • Additional liquidity will have a dilutive impact on net interest margin in 2020.
  • Expenses increased in the first quarter of 2020 due in large part to the impact of COVID-19 to off-balance sheet reserves, primarily for unfunded lines of credit.
  • Reduced targeted cash incentive award for 2020 to a payout of approximately 50 percent.
  • Suspended share repurchase program.
  • Eliminated much of 2020 hiring plan.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.4%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+2.8%

Avg return

30 days after

60%

24 / 40 earnings

Positive

+6.1%

Q2 2020

Best reaction

-5.9%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.3%+0.1%-1.5%
Q4 2025-4.1%-6.3%-0.7%
Q3 2025-5.9%-1.8%-1.0%
Q2 2025+1.4%+1.7%-19.7%
Q1 2025+2.3%+3.2%+20.3%
Q4 2024+0.3%+2.8%-1.4%
Q3 2024+1.2%+6.4%+24.3%
Q2 2024+2.8%+4.9%+0.9%
Q1 2024+2.4%+1.0%+2.5%
Q4 2023-1.9%+1.6%+0.7%
Q3 2023+1.3%-9.8%+5.9%
Q2 2023+5.6%+14.2%+9.3%
Q1 2023+3.7%+3.6%-5.2%
Q4 2022+0.9%-3.3%+4.8%
Q3 2022+0.2%-8.7%-8.5%
Q2 2022+3.6%+6.4%+20.2%
Q1 2022+0.2%-3.4%-10.8%
Q4 2021-2.3%-7.8%-12.6%
Q3 2021+1.3%+3.9%+4.9%
Q2 2021+4.1%+5.9%+9.2%
Q1 2021-0.7%-4.0%-2.2%
Q4 2020+0.5%+4.6%+12.0%
Q3 2020+2.2%+14.3%+36.9%
Q2 2020+6.1%+8.2%+5.7%
Q1 2020-1.2%-9.1%-5.4%
Q4 2019-2.1%-4.3%+0.1%
Q3 2019+1.0%+3.7%+6.9%
Q2 2019-0.4%+4.8%-5.9%
Q1 2019-2.3%-1.7%-2.2%
Q4 2018+0.4%+5.6%+9.3%
Q3 2018-1.3%-3.0%-3.7%
Q2 2018-0.6%+3.9%+6.9%
Q1 2018-0.2%-0.4%+3.5%
Q4 2017-1.0%-6.6%-6.5%
Q3 2017-1.7%+1.7%-2.0%
Q2 2017+0.4%+2.2%-5.3%
Q1 2017+1.9%+5.7%-1.5%
Q4 2016-4.0%-6.9%+4.5%
Q3 2016+0.6%-3.7%+16.3%
Q2 2016-0.0%-0.4%+2.2%
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q1 2010
Q4 2012
Q3 2012
Q2 2012
Q1 2011
Q1 2012
Q4 2011
Q4 2010
Q4 2009
Q3 2010
Q3 2011
Q2 2010
Q2 2011

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