NYSE$PNFP

Pinnacle Financial Partners Inc. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported diluted EPS of $1.69, ROAA of 1.46% and ROTCE of 17.32% for Q2 2021.

Pinnacle Financial Partners reported a strong second quarter with net income per diluted common share increasing by approximately 104 percent compared to the same quarter last year. Net interest income grew 18.6% annualized and fee income grew 23.7% annualized.

  • Net income per diluted common share was $1.69, compared to $0.83 for the quarter ended June 30, 2020, an increase of approximately 104 percent.
  • Excluding certain items, net income per diluted common share was $1.68, compared to $0.89 for the quarter ended June 30, 2020, an increase of nearly 89 percent.
  • Revenues for the quarter were $331.4 million, an increase of $57.8 million from the second quarter of 2020, a year-over-year growth rate of 21.1 percent.
  • Net interest income for the quarter was $233.2 million, a year-over-year growth rate of 16.2 percent.

Headline financials

Total Revenue

$331M

Previous: $274M+20.9%
EPS (adj)

$1.68

Previous: $0.89+88.8%
Efficiency Ratio

50.1%

Previous: 48.1%+4.2%
Net Interest Margin

3.1%

No prior period
Capital Expenditures

$4.75M

Previous: $12.3M-61.5%
Free Cash Flow

$173M

Previous: $116M+48.9%
Net Income

$132M

Previous: $62.4M+111.1%
Operating Income

$162M

Previous: $73.7M+120.5%
Cash & Equivalents

$2.89B

Previous: $2.69B+7.3%
Total Assets

$35.4B

Previous: $33.3B+6.2%
Stock-Based Comp

$5.7M

Previous: $4.15M+37.4%

Revenue & EPS history

Pinnacle Financial · Revenue · Quarterly

$331M

Q2 2021+20.9%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
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

Total expenses for the third and fourth quarters of 2021 should be flat to down from the amounts reported in the second quarter of 2021.

Tailwinds

  • Further reductions in deposit rates are likely.
  • Increased investments in Atlanta, Huntsville and Birmingham are expected to contribute to positive operating leverage.
  • Ongoing positive operating leverage is expected from onboarding a large number of market-leading revenue producers.
  • Deployment of liquidity into investment securities.
  • Redeeming $130 million in bank-level subordinated indebtedness in late July 2021, using on-balance sheet liquidity which will also result in reduced funding costs going forward.

Headwinds

  • Maintaining loan yields will continue to be a focus item for the company.
  • Expenses increased by $11.4 million over the first quarter of 2021 due to incentive accruals.
  • Equity investments in other businesses had several big wins in the second quarter of 2021 with these investments contributing $3.6 million in incremental second quarter revenues.
  • Mortgage did experience a linked-quarter decline of $7.0 million this quarter as rates began to fluctuate and the absolute volume of originations retreated in comparison to the impressive amount of business produced over the last several quarters.
  • The firm estimates its second quarter 2021 net interest margin was negatively impacted by approximately 17 basis points as a result of PPP loans and additional liquidity, compared to approximately 27 basis points for the first quarter of 2021 and 32 basis points for the second quarter 2020.

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 2021

Historical avgQ2 2021

+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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