NYSE$PNFP

Pinnacle Financial Partners Inc. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported diluted EPS of $0.83, ROAA of 0.77% and ROTCE of 9.77% for Q2 2020.

Pinnacle Financial Partners reported a decrease in net income per diluted common share to $0.83 for the quarter ended June 30, 2020, compared to $1.31 for the quarter ended June 30, 2019, a decrease of 36.6 percent. The company focused on protecting stakeholders from the COVID-19 pandemic, granting payment deferrals on approximately $4.4 billion in loans and issuing $2.2 billion in PPP loans. They also fortified their balance sheet with additional liquidity and capital.

  • Loans at June 30, 2020, were $22.5 billion, reflecting year-over-year growth of 19.7 percent.
  • Deposits at June 30, 2020, were a record $25.5 billion, an increase of 31.2 percent from June 30, 2019.
  • Return on average assets was 0.77 percent for the second quarter of 2020, compared to 1.55 percent for the second quarter of 2019.
  • Revenues for the quarter ended June 30, 2020, were $273.6 million, an increase of 5.4 percent year-over-year.

Headline financials

Total Revenue

$274M

Previous: $266M+3.1%
EPS (adj)

$0.89

Previous: $1.42-37.3%
Efficiency Ratio

48.1%

Previous: 49.2%-2.2%
Return on Avg Assets

0.8%

Previous: 1.6%-50.3%
Return on Avg Tangible Common Equity

9.8%

Previous: 17.7%-44.9%
Net Charge-offs / Avg Loans

0.1%

Previous: 0.1%+11.1%
Capital Expenditures

$12.3M

Previous: $26.6M-53.6%
Free Cash Flow

$116M

Previous: $2.18M+5237.9%
Net Income

$62.4M

Previous: $100M-37.8%
Operating Income

$73.7M

No prior period
Cash & Equivalents

$2.69B

Previous: $153M+1659.6%
Total Assets

$33.3B

Previous: $26.5B+25.6%
Stock-Based Comp

$4.15M

Previous: $5.16M-19.6%

Revenue & EPS history

Pinnacle Financial · Revenue · Quarterly

$274M

Q2 2020+3.1%vs Q2 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 loan growth will achieve an annualized growth rate of low to mid-single digits in the second half of the year. The focus for the third quarter will be to continue to reduce deposit costs for both core and wholesale funding sources. The company also anticipates reducing the level of liquidity over the next two to three quarters and expects to find their way to historical balance sheet liquidity levels.

Tailwinds

  • Anticipates loan growth will achieve an annualized growth rate of low to mid-single digits in the second half of the year
  • Focus for the third quarter will be to continue to reduce deposit costs for both core and wholesale funding sources
  • Anticipates reducing the level of liquidity over the next two to three quarters
  • Expects to find their way to historical balance sheet liquidity levels
  • Successful in the implementation of client loan floors on new and renewed loans

Headwinds

  • Loan growth will be subject to the ebbs and flows of the pandemic and the influence it has on business owners
  • The resulting leverage they are willing to accept in order to grow their businesses may be impacted
  • Several tactics that were deployed in response to COVID-19 will continue to impact margin results over the next few quarters
  • The firm has reduced its accrual for payouts under its broad-based cash incentive plan for 2020 to a payout of approximately 25 percent
  • Performance-based equity compensation expense for previously granted awards with performance criteria tied to fiscal year 2020 tranches has also been significantly reduced

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 Q2 2020

Historical avgQ2 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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