NYSE$PNFP

Pinnacle Financial Partners Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported diluted EPS of $1.42, ROAA of 1.26% and ROTCE of 15.85% for Q3 2020.

Pinnacle Financial Partners reported net income per diluted common share of $1.42 for the quarter ended Sept. 30, 2020, compared to net income per diluted common share of $1.44 for the quarter ended Sept. 30, 2019, a decrease of 1.4 percent.

  • Loans at Sept. 30, 2020 were $22.5 billion, an increase of $3.1 billion from Sept. 30, 2019, reflecting year-over-year growth of 16.2 percent.
  • Deposits at Sept. 30, 2020 were a record $26.5 billion, an increase of $6.5 billion from Sept. 30, 2019, reflecting year-over-year growth of 32.7 percent.
  • Return on average assets was 1.26 percent for the third quarter of 2020, compared to 0.77 percent for the second quarter of 2020 and 1.62 percent for the third quarter of 2019.
  • Revenues for the quarter ended Sept. 30, 2020 were $297.7 million, an increase of $24.0 million from the $273.6 million recognized in the second quarter of 2020, an annualized growth rate of 35.2 percent.

Headline financials

Total Revenue

$297M

Previous: $278M+6.8%
EPS (adj)

$1.45

Previous: $1.45+0.0%
Efficiency Ratio

48.5%

Previous: 47.7%+1.7%
Return on Avg Assets

1.3%

Previous: 1.6%-22.2%
Return on Avg Tangible Common Equity

15.8%

Previous: 18.3%-13.3%
Capital Expenditures

$11.6M

Previous: $5.5M+111.6%
Free Cash Flow

$105M

Previous: $125M-16.1%
Net Income

$111M

Previous: $111M+0.1%
Operating Income

$137M

No prior period
Gross Profit

$207M

No prior period
Cash & Equivalents

$3.04B

Previous: $198M+1439.7%
Total Assets

$33.8B

Previous: $27.5B+22.8%
Stock-Based Comp

$4.44M

Previous: $5.02M-11.5%

Revenue & EPS history

Pinnacle Financial · Revenue · Quarterly

$297M

Q3 2020+6.8%vs Q3 2019
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

The firm anticipates reducing its level of liquidity over the next three to four quarters and expects that eventually we will find our way to historical balance sheet liquidity levels.

Tailwinds

  • Loan growth will achieve an annualized growth rate of low-single digits this year, exclusive of PPP lending.
  • Monthly new loan bookings increased throughout the last two months of the third quarter after hitting a low point for 2020 in July.
  • Deposit flows will remain strong for the remainder of the year.
  • Continue to target a less than 0.25 percent overall deposit rate for the firm.
  • Wealth management rebounded in the third quarter with a nice increase in revenues.

Headwinds

  • National politics and the pandemic will impact the velocity of any economic recovery for the remainder of this year and into next year.
  • PPP loans and liquidity build will continue to impact margin results over the next few quarters.
  • Loan growth will be soft for the next few quarters due to the pandemic.
  • Expenses increased in the third quarter of 2020 due primarily to the restructuring of our annual cash incentive plan with the addition of a PPNR growth component.
  • 2020 expense growth will result in a mid-single digit percentage increase in comparison to the annualize run rate from the fourth quarter of 2019.

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 Q3 2020

Historical avgQ3 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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