NYSE$PNFP

Pinnacle Financial Partners Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Pinnacle Financial reported a strong Q3 2024 with increased EPS and net interest margin.

Pinnacle Financial Partners reported a net income per diluted common share of $1.86 for Q3 2024, a 10.1% increase compared to Q3 2023. The firm experienced double-digit linked-quarter annualized growth in earning assets and core deposits, along with an expanding net interest margin.

  • Diluted earnings per share grew to $1.86 in the third quarter.
  • Added 126 new revenue producers thus far this year.
  • Total assets reached $50.7 billion, reflecting a linked-quarter annualized increase of 10.8 percent.
  • Core deposits are up more than $2.0 billion so far this year.

Headline financials

Total Revenue

$467M

Previous: $408M+14.4%
EPS (adj)

$1.86

Previous: $1.79+3.9%
Efficiency Ratio

55.6%

Previous: 52.3%+6.3%
Net Interest Margin

3.2%

Previous: 3.1%+5.2%
Return on Avg Assets

1.1%

Previous: 1.1%+6.5%
Return on Avg Tangible Common Equity

13.6%

Previous: 13.4%+1.3%
Net Charge-offs / Avg Loans

0.2%

No prior period
Total Loans

$34.3B

No prior period
Total Deposits

$41B

No prior period
Capital Expenditures

-$25.3M

Previous: $15.3M-265.4%
Free Cash Flow

$77.1M

Previous: $107M-27.7%
Net Income

$147M

Previous: $133M+10.6%
Operating Income

$181M

Previous: $168M+7.8%
Cash & Equivalents

$2.83B

Previous: $3.15B-10.1%
Total Assets

$50.7B

Previous: $47.5B+6.7%
Stock-Based Comp

$10.4M

Previous: $10.1M+3.2%

Revenue & EPS history

Pinnacle Financial · Revenue · Quarterly

$467M

Q3 2024+14.4%vs Q3 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Pinnacle Financial · $45.8M total across 4 segments · Q3 2024

  • Investment Services
    $17.9M
  • Service Charges
    $16.2M
  • Trust Fees
    $8.38M
  • Insurance Commissions
    $3.29M

Forward guidance

Pinnacle Financial expects continued growth and capitalization on a declining interest rate environment.

Tailwinds

  • Well positioned to capitalize on what appears to be a declining interest rate environment.
  • Hiring pipelines remain very active heading into the last quarter of 2024.
  • Fully expect 2025 to yield double-digit growth.
  • Expect significant investment in new people and facilities should enable the firm to continue to grow its core funding.
  • Optimistic that the firm will see increases in the pace of loan growth as it closes out 2024 and enters 2025.

Headwinds

  • Expense results for the third quarter came in slightly higher than originally anticipated at the beginning of the quarter, with most of this attributable to personnel costs.
  • BHG’s contribution now representing approximately 8 percent of our third quarter pre-tax, pre-provision revenues.
  • BHG reserves for on-balance sheet loan losses were $237 million, or 9.1 percent of loans held for investment at Sept. 30, 2024
  • BHG increased its accrual for estimated losses attributable to loan substitutions and prepayments to $454 million, or 6.2 percent of the unpaid balances on loans that were previously purchased by BHG’s community bank network, at Sept. 30, 2024
  • It is the firm's intent to continue reducing its exposure to non-owner occupied commercial real estate, multifamily and construction and land development loans from its level at Sept. 30, 2024 of 243.3 percent of total risk-based capital to below 225 percent.

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 2024

Historical avgQ3 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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