NYSE$PNFP

Pinnacle Financial Partners Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported diluted EPS of $0.64 and net interest margin of 3.14 percent.

Pinnacle Financial Partners reported a decrease in net income per diluted common share to $0.64 for Q2 2024, compared to $2.54 for the same period in 2023. However, after adjustments for capital optimization and balance sheet repositioning initiatives, diluted EPS was $1.63, reflecting an annualized linked-quarter growth rate of 26.1 percent. The company saw net interest margin expansion and double-digit growth in most fee businesses.

  • Net income per diluted common share was $0.64, or $1.63 excluding impacts of capital optimization and balance sheet repositioning initiatives.
  • Total revenues were $366.6 million, or $438.7 million excluding certain adjustments, reflecting a 5.3 percent increase compared to the previous quarter.
  • Total assets reached $49.4 billion, an increase of $472.8 million from the previous quarter.
  • Net interest margin was 3.14 percent, compared to 3.04 percent for the first quarter of 2024.

Headline financials

Total Revenue

$367M

Previous: $489M-25.1%
EPS (adj)

$1.63

Previous: $1.79-8.9%
Efficiency Ratio

74.0%

Previous: 43.3%+71.2%
Net Interest Margin

3.1%

Previous: 3.2%-1.9%
Return on Avg Assets

0.4%

No prior period
Return on Avg Tangible Common Equity

4.9%

No prior period
Net Charge-offs / Avg Loans

0.3%

No prior period
Total Loans

$33.8B

No prior period
Total Deposits

$39.8B

No prior period
Capital Expenditures

$26.9M

Previous: $11M+143.6%
Free Cash Flow

$58.8M

Previous: -$122M+148.4%
Net Income

$53.2M

Previous: $197M-73.1%
Operating Income

$65M

Previous: $246M-73.6%
Cash & Equivalents

$2.38B

Previous: $3.83B-38.0%
Total Assets

$49.4B

Previous: $46.9B+5.3%
Stock-Based Comp

$10.6M

Previous: $9.25M+14.8%

Revenue & EPS history

Pinnacle Financial · Revenue · Quarterly

$367M

Q2 2024-25.1%vs Q2 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Pinnacle Financial · $42.3M total across 4 segments · Q2 2024

  • Investment Services
    $15.7M
  • Service Charges
    $14.6M
  • Trust Fees
    $8.32M
  • Insurance Commissions
    $3.72M

Forward guidance

Pinnacle Financial anticipates continued margin expansion for the remainder of 2024 and expects BHG's quarterly contribution to be consistent with Q2 levels. The company is increasing its accrual for annual cash incentive plan payouts to approximately 85 percent of target.

Tailwinds

  • Anticipates continued margin expansion for the remainder of 2024
  • Expectation that BHG's quarterly contribution to be fairly consistent with Q2 contribution for the remainder of 2024.
  • Increasing accrual for annual cash incentive plan payouts to approximately 85 percent of target level payouts.
  • Outsized loan and deposit growth.
  • Strong hiring across the franchise, particularly in newer markets.

Headwinds

  • Continued margin expansion depends on obtaining appropriate pricing on new and renewing loans.
  • Continued margin expansion depends on stability of noninterest bearing deposit balances.
  • Continued margin expansion depends on relationship managers working extremely hard to keep deposit pricing well contained.
  • Expense results for the second quarter are generally consistent with where the company thought they would be excluding the costs of the balance sheet restructuring and capital optimization initiatives.
  • Net charge-offs increased in the second quarter primarily due to the continued deterioration of the value of the underlying collateral of an owner-occupied commercial real estate loan.

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 2024

Historical avgQ2 2024

+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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