NYSE$PNFP

Pinnacle Financial Partners Inc. · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported diluted EPS of $1.26, ROAA of 1.38% and ROTCE of 15.41% for Q4 2019.

Pinnacle Financial Partners reported a net income per diluted common share of $1.26 for the quarter ended Dec. 31, 2019, compared to $1.23 for the quarter ended Dec. 31, 2018, representing an increase of 2.4 percent.

  • Loans reached a record $19.8 billion, up 11.7% year-over-year.
  • Deposits totaled $20.2 billion, reflecting a 7.1% year-over-year increase.
  • Revenues for the quarter were $253.6 million, up 2.5% from the fourth quarter of 2018.
  • Return on average assets was 1.38% for the fourth quarter of 2019.

Headline financials

Total Revenue

$254M

Previous: $250M+1.5%
EPS (adj)

$1.27

Previous: $1.25+1.6%
Efficiency Ratio

51.4%

No prior period
Net Interest Margin

3.4%

No prior period
Return on Avg Assets

1.4%

No prior period
Return on Avg Tangible Common Equity

15.4%

No prior period
Net Charge-offs / Avg Loans

0.1%

No prior period
Total Loans

$19.8B

No prior period
Total Deposits

$20.2B

No prior period
Capital Expenditures

$7.96M

Previous: $5.26M+51.4%
Free Cash Flow

$112M

Previous: $147M-23.9%
Net Income

$96.1M

Previous: $95.3M+0.8%
Operating Income

$119M

No prior period
Cash & Equivalents

$527M

Previous: $722M-27.0%
Total Assets

$27.8B

Previous: $25B+11.1%
Stock-Based Comp

$6.14M

Previous: $4.38M+40.0%

Revenue & EPS history

Pinnacle Financial · Revenue · Quarterly

$254M

Q4 2019+1.5%vs Q4 2018
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Pinnacle Financial · $21.5M total across 4 segments · Q4 2019

  • Service Charges
    $9.09M
  • Investment Services
    $6.58M
  • Trust Fees
    $3.84M
  • Insurance Commissions
    $2.02M

Forward guidance

Pinnacle anticipates continued stabilization in the yield curve, which should help stabilize the net interest margin in 2020. Expense growth is expected to be in the mid- to high-single digit percentage increases for 2020, with cash incentives targeted at approximately $50 million.

Tailwinds

  • High-single to low-double digit loan growth is achievable in 2020.
  • Focus on growing low-cost core deposits.
  • Continued focus on maintaining asset quality and growing EPS.
  • Anticipated continued stabilization in the yield curve.
  • Expect to keep expense growth to the mid- to high-single digit percentage increases for 2020.

Headwinds

  • Volatility in the interest rate environment impacted margins during 2019.
  • Increased expense run rates due to the addition of Advocate Capital.
  • Continued hiring, especially with the build out in Atlanta, will increase expenses.
  • If revenues do not materialize at the planned growth rates, there may be a need to reduce cash incentives.
  • Interest rate backdrop during 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 Q4 2019

Historical avgQ4 2019

+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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