NYSE$PNFP

Pinnacle Financial Partners Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported diluted EPS of $2.54, ROAA of 1.71% and ROATCE of 21.06% for Q2 2023.

Pinnacle Financial Partners reported a strong second quarter in 2023, with diluted EPS of $2.54, a 36.6% increase compared to Q2 2022. The company saw annualized linked-quarter loan growth of 11.3% and deposit growth of 17.1%.

  • Diluted earnings per share increased by 36.6% compared to the same quarter last year.
  • End-of-period loans grew by $855.4 million over last quarter, reflecting an annualized linked-quarter growth rate of 11.3 percent.
  • End-of-period deposits grew by $1.5 billion over the same period, reflecting an annualized linked-quarter growth rate of 17.1 percent.
  • The company added 20 revenue producers during the quarter, investing in its relationship banking model.

Headline financials

Total Revenue

$489M

Previous: $390M+25.4%
EPS (adj)

$1.79

Previous: $1.86-3.8%
Efficiency Ratio

43.3%

Previous: 50.3%-13.9%
Net Interest Margin

3.2%

No prior period
Capital Expenditures

$11M

Previous: $13M-15.1%
Free Cash Flow

-$122M

Previous: $135M-190.0%
Net Income

$197M

Previous: $145M+35.9%
Operating Income

$246M

Previous: $181M+35.8%
Cash & Equivalents

$3.83B

Previous: $1.63B+134.9%
Total Assets

$46.9B

Previous: $40.1B+16.8%
Stock-Based Comp

$9.25M

Previous: $10.8M-14.0%

Revenue & EPS history

Pinnacle Financial · Revenue · Quarterly

$489M

Q2 2023+25.4%vs Q2 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 anticipates that the reduction in noninterest bearing balances will slow from the pace of previous quarters this year. The company believes with more rate hikes in the forecast for 2023, their funding costs will increase but not at the same rate as the second quarter increase. The impact of hiring and usual seasonal growth will enable them to continue to grow deposits for the remainder of the year at levels that should support their current outlook of high single-digit percentage deposit growth for 2023 over 2022. Pinnacle's current outlook is that growth in net interest income for fiscal year 2023 over 2022 should approximate a low-teens percentage increase.

Tailwinds

  • Company anticipates that the reduction in noninterest bearing balances will slow from the pace of previous quarters this year
  • Company believes with more rate hikes in the forecast for 2023, their funding costs will increase but not at the same rate as the second quarter increase
  • Impact of hiring and usual seasonal growth will enable them to continue to grow deposits for the remainder of the year
  • Deposit growth should support current outlook of high single-digit percentage deposit growth for 2023 over 2022
  • Growth in net interest income for fiscal year 2023 over 2022 should approximate a low-teens percentage increase

Headwinds

  • Increased deposit pricing and the continued reduction in noninterest-bearing deposit account balances as a result of a shift in deposit mix were the primary contributors to decreased net interest margin
  • Elevated level of on-balance sheet liquidity acquired during mid-March given the heightened levels of uncertainty in the broader banking industry
  • Value of investment securities decreased by approximately $255.4 million in the second quarter from the first quarter, largely as a result of the decision to sell approximately $174.0 million in securities in the second quarter of 2023
  • Net interest margin declined on a linked-quarter basis by approximately 20 basis points
  • Firm expects that the credit metrics will remain consistent for the remainder of this year.

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 2023

Historical avgQ2 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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