NYSE$PNFP

Pinnacle Financial Partners Inc. · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported diluted EPS of $1.42, ROAA of 1.24% and ROTCE of 15.37% for Q4 2020.

Pinnacle Financial Partners reported a strong core performance in Q4 2020, with diluted EPS of $1.42, a 12.7% increase compared to Q4 2019. Adjusted diluted EPS was $1.58, reflecting a 24.4% year-over-year increase. Loan and deposit growth remained robust, and the company increased its book value per share by 8.6%.

  • Diluted earnings per share grew over 12 percent (over 24 percent on an adjusted basis) compared to Q4 2019.
  • Loans reached $22.4 billion, a 13.3% increase from Dec. 31, 2019.
  • Deposits hit a record $27.7 billion, a 37.3% increase from Dec. 31, 2019.
  • The board of directors has authorized a new share repurchase plan for up to $125 million of the Company’s common stock.

Headline financials

Total Revenue

$304M

Previous: $254M+20.1%
EPS (adj)

$1.58

Previous: $1.27+24.4%
Efficiency Ratio

53.6%

Previous: 51.4%+4.2%
Net Interest Margin

3.0%

Previous: 3.4%-11.3%
Return on Avg Assets

1.2%

Previous: 1.4%-10.1%
Return on Avg Tangible Common Equity

15.4%

Previous: 15.4%-0.3%
Capital Expenditures

$8.45M

Previous: $7.96M+6.1%
Free Cash Flow

$118M

Previous: $112M+5.2%
Net Income

$111M

Previous: $96.1M+15.4%
Operating Income

$134M

Previous: $119M+13.0%
Cash & Equivalents

$3.96B

Previous: $527M+652.1%
Total Assets

$34.9B

Previous: $27.8B+25.6%
Stock-Based Comp

$4.65M

Previous: $6.14M-24.3%

Revenue & EPS history

Pinnacle Financial · Revenue · Quarterly

$304M

Q4 2020+20.1%vs Q4 2019
Beat estimate in 13 of 16 quarters(81%)
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 anticipates a more stable operating environment in 2021 and aims for top-quartile peer performance with respect to return on tangible common equity and tangible book value per share growth. The firm expects high-single to low double-digit loan growth in 2021, excluding the impact of the PPP program, and anticipates strong growth in total fee revenues.

Tailwinds

  • Continued focus on reducing deposit costs for both client and wholesale funding sources.
  • Expectation that liquidity levels will return to historical balance sheet levels over the next two years.
  • Optimism that BHG will have another great year in 2021 with strong business flows headed into Q1 2021.
  • Belief in a great hiring platform with more mortgage originators than ever and operation in very attractive housing markets.
  • Anticipation of strong growth in total fee revenues in 2021.

Headwinds

  • Net interest margin negatively impacted by PPP loans and excess liquidity.
  • Potential modest decrease in mortgage revenues due to belief that long-term rates may increase in 2021.
  • Expenses in Q4 2020 were higher than anticipated due primarily to the compensation committee's decision to increase the annual cash incentive plan award.
  • Expected increase in incentive costs.
  • Belief that 2021 expense growth will result in a high-single digit percentage increase in comparison to total noninterest expense for 2020.

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 2020

Historical avgQ4 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
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Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
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Q1 2010
Q4 2012
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Q1 2011
Q1 2012
Q4 2011
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Q4 2009
Q3 2010
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Q2 2010
Q2 2011

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