NYSE$PNFP

Pinnacle Financial Partners Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Pinnacle Financial reported diluted EPS of $1.86, ROAA of 1.46% and ROATCE of 17.62% for the second quarter of 2022.

Pinnacle Financial Partners, Inc. reported a strong second quarter in 2022, with net income per diluted common share increasing by 10.1% compared to the same period last year. The company experienced significant loan growth, driven by recent market extensions and a focus on recruiting experienced relationship managers. Revenues also saw growth, with net interest income and core fee categories showing double-digit increases.

  • Annualized linked-quarter loan growth of 29.9% for 2Q2022, 31.9% exclusive of PPP paydowns
  • New markets contributed almost 25 percent of loan growth this quarter.
  • Hired 37 additional revenue producers during the second quarter.
  • Second quarter fee revenues were the best ever experienced.

Headline financials

Total Revenue

$390M

Previous: $331M+17.8%
EPS (adj)

$1.86

Previous: $1.68+10.7%
Efficiency Ratio

50.3%

Previous: 50.1%+0.3%
Return on Avg Assets

1.5%

No prior period
Return on Avg Tangible Common Equity

17.6%

No prior period
Capital Expenditures

$13M

Previous: $4.75M+173.7%
Free Cash Flow

$135M

Previous: $173M-22.0%
Net Income

$145M

Previous: $132M+10.1%
Operating Income

$181M

Previous: $162M+11.5%
Gross Profit

$265M

No prior period
Cash & Equivalents

$1.63B

Previous: $2.89B-43.6%
Total Assets

$40.1B

Previous: $35.4B+13.3%
Stock-Based Comp

$10.8M

Previous: $5.7M+88.8%

Revenue & EPS history

Pinnacle Financial · Revenue · Quarterly

$390M

Q2 2022+17.8%vs Q2 2021
Beat estimate in 10 of 16 quarters(63%)
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

The company expects a more difficult economic landscape in the second half of the year but believes it can outperform even through a more challenging operating environment.

Tailwinds

  • Loan growth is expected to continue driving revenue.
  • Anticipate margin expansion in the third quarter.
  • Hiring model will continue to provide opportunities to add revenue producers.
  • Compensation costs increased due primarily to increased headcount, annual merit raises and higher incentive accruals.
  • Believe total 2022 noninterest expense should approximate a mid-teens percentage increase over that of 2021.

Headwinds

  • Inflation is prompting urgent action by the Fed and increasing the likelihood of recession.
  • Changes in the firm's insufficient funds and overdraft programs announced earlier this month could amount to approximately $2.9 million in reduced service charge revenue annually, or approximately $700,000 on a quarterly basis.
  • BHG's decision to place more loans into their auction platform in the second quarter than they would have otherwise anticipated is likely to negatively impact BHG's results in the second half of 2022.
  • Expect a more difficult economic landscape in the second half of the year.
  • Inflation is impacting those borrowers that have outsized exposure to rapidly rising energy and labor costs.

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 2022

Historical avgQ2 2022

+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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