NYSE$PNFP

Pinnacle Financial Partners Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported diluted EPS of $1.76, ROAA of 1.26% and ROATCE of 15.43% for Q1 2023

Pinnacle Financial Partners reported a strong first quarter in 2023, with diluted EPS of $1.76, a 6.7% increase compared to Q1 2022. The company experienced annualized linked-quarter loan growth of 17.3% and deposit growth of 13.9%. Despite volatility in the banking sector, Pinnacle demonstrated resilience and client loyalty, enabling deposit growth and strong credit metrics.

  • Diluted EPS increased by 6.7% year-over-year, reaching $1.76 in Q1 2023.
  • Annualized linked-quarter loan growth was 17.3%, indicating strong lending activity.
  • Deposit growth annualized at 13.9% for the quarter, reflecting client loyalty and strategic deposit gathering initiatives.
  • Pre-tax, pre-provision net revenues (PPNR) increased by 18.5% compared to Q1 2022, reaching $190.0 million.

Headline financials

Total Revenue

$402M

Previous: $343M+17.1%
EPS (adj)

$1.76

Previous: $1.65+6.7%
Efficiency Ratio

52.7%

Previous: 53.3%-1.1%
Net Interest Margin

3.4%

Previous: 2.9%+17.6%
Return on Avg Assets

1.3%

Previous: 1.3%-4.5%
Return on Avg Tangible Common Equity

15.4%

Previous: 15.6%-1.3%
Capital Expenditures

$35.5M

Previous: $10.1M+252.6%
Free Cash Flow

$324M

Previous: $42M+671.5%
Net Income

$137M

Previous: $129M+6.3%
Operating Income

$171M

Previous: $158M+8.7%
Cash & Equivalents

$2.82B

Previous: $3.32B-15.1%
Total Assets

$45.1B

Previous: $39.4B+14.5%
Stock-Based Comp

$10.2M

Previous: $9.45M+7.9%

Revenue & EPS history

Pinnacle Financial · Revenue · Quarterly

$402M

Q1 2023+17.1%vs Q1 2022
Beat estimate in 7 of 15 quarters(47%)
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 Partners anticipates that linked-quarter loan growth for the remainder of the year is likely to moderate due to slower loan demand and tighter credit standards.

Tailwinds

  • Expects to hold elevated levels of liquidity for the next few quarters to protect from banking sector uncertainty.
  • Liquidity metrics are as strong as they have ever been.
  • Experienced a meaningful reduction in our uninsured deposit base, as approximately $2.1 billion in deposits were added to a reciprocal deposit insurance funding network during March.
  • Investment securities portfolio, including both the held-to-maturity and available-for-sale portfolios, has performed very well in recent months.
  • Credit metrics remain consistent with prior quarter’s results, and we continue to believe the loan portfolio remains healthy.

Headwinds

  • Linked-quarter loan growth is likely to moderate to some extent based on slower loan demand as a result of macroeconomic factors and the fact that we have continued to tighten the credit box, particularly as it pertains to construction and commercial real estate lending.
  • Net interest margin declined on a linked-quarter basis by approximately 20 basis points.
  • Increased funding costs contributed to the reduced net interest margin.
  • The $1.7 billion increase in on-balance sheet liquidity, which we acquired during mid-March given the uncertainty in the broader banking industry, also contributed to the reduced net interest margin.
  • A recession is likely to materialize in 2023.

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 2023

Historical avgQ1 2023

+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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