Financial Data and Key Metrics - No specific financial data or key metrics changes were provided in the content [1][2][3] Business Line Data and Key Metrics - No specific business line data or key metrics changes were provided in the content [1][2][3] Market Data and Key Metrics - No specific market data or key metrics changes were provided in the content [1][2][3] Company Strategy and Industry Competition - No specific details on company strategy, development direction, or industry competition were provided in the content [1][2][3] Management Commentary on Operating Environment and Future Outlook - No specific comments from management regarding the operating environment or future outlook were provided in the content [1][2][3] Other Important Information - The earnings release and presentation are available on the Investor Relations page of the company's website [2] - The call is being recorded and will be available for replay on the company's website for the next 90 days [2] - Forward-looking statements made during the presentation are subject to risks and uncertainties, and the company disclaims any obligation to update or revise such statements [3] Q&A Session - No questions or answers were provided in the content [1][2][3]

Investor Call FOURTH QUARTER 2024 JANUARY 22, 2025 Time: 8:30 AM CT Webcast: www.pnfp.com (investor relations) M. TERRY TURNER, PRESIDENT AND CEO HAROLD R. CARPENTER, EVP AND CFO Safe Harbor Statements Forward Looking Statements All statements, other than statements of historical fact, included in this presentation, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Ac ...

Core Insights - Pinnacle Financial reported a revenue of $475.34 million for the quarter ended December 2024, marking a 19.9% increase year-over-year and a surprise of +2.56% over the Zacks Consensus Estimate of $463.47 million [1] - The earnings per share (EPS) for the quarter was $1.90, compared to $1.68 in the same quarter last year, resulting in an EPS surprise of +5.56% against the consensus estimate of $1.80 [1] Financial Performance Metrics - Net Interest Margin stood at 3.2%, matching the four-analyst average estimate [4] - Efficiency Ratio was reported at 55.1%, slightly higher than the estimated 54.3% [4] - Nonaccrual loans totaled $147.83 million, exceeding the average estimate of $125.68 million [4] - Annualized net loan charge-offs to average loans were at 0.2%, consistent with the three-analyst average estimate [4] - Average balances of total interest-earning assets reached $46.40 billion, surpassing the $45.90 billion average estimate [4] - Total nonperforming assets were reported at $149.11 million, higher than the estimated $126.91 million [4] - Net Interest Income was $363.79 million, slightly above the average estimate of $360.31 million [4] - Total noninterest income amounted to $111.55 million, compared to the average estimate of $107.61 million [4] - Gains on mortgage loans sold, net, were $2.34 million, slightly below the average estimate of $2.45 million [4] - Service charges on deposit accounts were $15.18 million, lower than the average estimate of $16.50 million [4] - Insurance sales commissions totaled $2.90 million, below the estimated $3.27 million [4] - Trust fees were reported at $9.10 million, exceeding the average estimate of $8.44 million [4] Stock Performance - Pinnacle Financial's shares have returned +5.5% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Group 1: Earnings Performance - Pinnacle Financial reported quarterly earnings of $1.90 per share, exceeding the Zacks Consensus Estimate of $1.80 per share, and up from $1.68 per share a year ago, representing an earnings surprise of 5.56% [1] - The company posted revenues of $475.34 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.56%, compared to year-ago revenues of $396.34 million [2] - Over the last four quarters, Pinnacle Financial has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Pinnacle Financial shares have increased approximately 4.8% since the beginning of the year, outperforming the S&P 500's gain of 2% [3] - The current consensus EPS estimate for the upcoming quarter is $1.75 on revenues of $466.97 million, and for the current fiscal year, it is $7.56 on revenues of $1.96 billion [7] - The estimate revisions trend for Pinnacle Financial is favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Group 3: Industry Context - The Zacks Industry Rank for Banks - Southeast is currently in the top 28% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Pinnacle Financial Partners reported diluted EPS of $1.91 for Q4 2024, a 60.5% increase from $1.19 in Q4 2023[1] - Total revenues for Q4 2024 were $475.3 million, an increase of approximately 19.9% from $396.4 million in Q4 2023[14] - Basic earnings per common share for Q4 2024 were $1.93, compared to $0.65 in Q4 2023[47] - Net income available to common shareholders for the year ended December 31, 2024, was $459.86 million, down from $546.96 million in 2023, indicating a decrease of 15.9%[29] - Basic net income per common share for Q4 2024 was $1.93, compared to $1.20 in Q4 2023, reflecting a year-over-year increase of 60.8%[29] Revenue and Income Growth - Noninterest income for Q4 2024 was $111.5 million, a 41.0% increase from $79.1 million in Q4 2023[9] - Total interest income for Q4 2024 was $684.36 million, an increase of 6.1% compared to $644.80 million in Q4 2023[29] - Pre-tax, pre-provision net revenue (PPNR) for Q4 2024 was $213.4 million, a 47.0% increase from $145.2 million in Q4 2023[8] - Total noninterest income for the year ended December 31, 2024, was $1.03 billion, an increase from $887.77 million in 2023, marking a rise of 16.2%[29] Asset and Deposit Growth - Total assets increased to $52.6 billion, a linked-quarter annualized increase of 14.9% and a year-over-year increase of 9.7%[5] - Total deposits reached $42.84 billion, a significant increase from $38.54 billion in the previous year, marking a growth of 11.9%[28] - Loan growth for Q4 2024 was $1.2 billion, representing a 13.7% linked-quarter annualized growth[5] - Total loans increased to $35,485,776 thousand, up from $34,308,310 thousand in the previous quarter, representing a growth of 3.43%[32] Expense Management - Noninterest expense for Q4 2024 was $261.9 million, a 4.3% increase from $251.2 million in Q4 2023[10] - Salaries and employee benefits increased to $164.7 million in Q4 2024, reflecting a year-over-year increase of 23.5% from $133.3 million in Q4 2023[13] - The efficiency ratio improved to 55.10%, down from 63.37% in Q4 2023[45] - Total expenses for 2024 were approximately $1.0 billion, consistent with the outlook from the previous quarter[15] Credit Quality and Loss Provisions - Provision for credit losses for Q4 2024 was $29.65 million, up from $16.31 million in Q4 2023, indicating a year-over-year increase of 81.8%[29] - The allowance for credit losses stood at $414.49 million, up from $353.06 million a year prior, indicating a rise of 17.4%[28] - Nonaccrual loans increased to $147,825 thousand in December 2024, up from $119,293 thousand in September 2024, representing a 23.5% increase[41] Strategic Initiatives and Outlook - The firm is optimistic about revenue growth in 2025, driven by a steeper yield curve and an experienced banking team[14] - Future growth strategies include potential acquisitions and expansion into new geographic markets, although specific targets were not detailed[28] - The company is focused on maintaining low-cost core deposits while navigating a challenging economic environment[28] Shareholder Value - Book value per common share increased to $80.46 as of Dec. 31, 2024, up from $75.80 at Dec. 31, 2023[15] - The closing sales price of common stock on the last trading day of December 2024 was $114.39, up from $97.97 in September 2024, representing a 16.0% increase[43] - The company’s shareholders' equity rose to $6,223,844 as of December 31, 2024, compared to $5,794,917 in 2023[37]

Core Viewpoint - Analysts expect Pinnacle Financial (PNFP) to report quarterly earnings of $1.80 per share, reflecting a year-over-year increase of 7.1%, with revenues projected at $463.47 million, up 16.9% from the previous year [1]. Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions to stock performance [2]. - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst projections [1]. Key Financial Metrics - Analysts project the 'Net Interest Margin' to reach 3.2%, up from 3.1% year-over-year [4]. - The 'Efficiency Ratio' is expected to improve to 54.3%, compared to 63.4% in the same quarter last year [4]. - 'Nonaccrual loans' are estimated at $125.68 million, up from $82.29 million a year ago [4]. Asset and Income Projections - 'Average balances - Total interest-earning assets' are forecasted to be $45.90 billion, compared to $42.95 billion last year [5]. - 'Total nonperforming assets' are projected at $126.91 million, up from $86.64 million year-over-year [5]. - 'Net Interest Income' is expected to reach $360.31 million, an increase from $317.25 million last year [5]. Noninterest Income Estimates - 'Total noninterest income' is projected at $107.61 million, compared to $79.09 million a year ago [6]. - 'Service charges on deposit accounts' are expected to be $16.50 million, up from $12.66 million [6]. - 'Insurance sales commissions' are estimated at $3.27 million, slightly up from $3.07 million last year [6]. Additional Income Metrics - 'Trust fees' are expected to reach $8.44 million, compared to $6.99 million last year [7]. - 'Income from equity method investment' is projected at $16.03 million, up from $14.43 million [7]. - 'Other noninterest income' is estimated at $43.83 million, compared to $27.53 million in the same quarter last year [8]. Market Performance - Pinnacle Financial shares have increased by 0.8% over the past month, contrasting with a -3.3% change in the Zacks S&P 500 composite [8]. - With a Zacks Rank 2 (Buy), PNFP is expected to outperform the overall market in the near term [8].

Core Viewpoint - Pinnacle Financial (PNFP) is anticipated to report a year-over-year increase in earnings driven by higher revenues for the quarter ended December 2024, with the consensus outlook suggesting a positive earnings picture [1][3]. Earnings Expectations - The upcoming earnings report is expected to reveal quarterly earnings of $1.80 per share, reflecting a year-over-year increase of +7.1%, while revenues are projected to reach $463.47 million, up 16.9% from the previous year [3]. - The stock price may increase if the reported figures exceed expectations, whereas a miss could lead to a decline in stock value [2]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial projections during this period [4]. - The Most Accurate Estimate for Pinnacle Financial is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +2.08%, suggesting a bullish outlook from analysts [10]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of a potential earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - Pinnacle Financial currently holds a Zacks Rank of 2, reinforcing the likelihood of surpassing the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Pinnacle Financial exceeded the expected earnings of $1.79 per share by delivering $1.86, resulting in a surprise of +3.91% [12]. - The company has successfully beaten consensus EPS estimates in all of the last four quarters [13]. Conclusion - Pinnacle Financial is positioned as a compelling candidate for an earnings beat, although investors should consider additional factors beyond earnings results when making investment decisions [16].

Core Viewpoint - Pinnacle Financial (PNFP) is a regional bank that has consistently exceeded earnings estimates and is well-positioned for future earnings surprises [1][3]. Earnings Performance - For the last reported quarter, Pinnacle Financial achieved earnings of $1.86 per share, surpassing the Zacks Consensus Estimate of $1.79 per share, resulting in a surprise of 3.91% [2]. - In the previous quarter, the company was expected to report earnings of $1.60 per share but delivered $1.63 per share, yielding a surprise of 1.88% [2]. Earnings Estimates and Predictions - There has been a favorable shift in earnings estimates for Pinnacle Financial, with a positive Earnings ESP (Expected Surprise Prediction) indicating potential for an earnings beat [3][6]. - The current Earnings ESP for Pinnacle Financial is +2.08%, suggesting that analysts are optimistic about its near-term earnings potential [6]. Zacks Rank and Success Rate - Pinnacle Financial holds a Zacks Rank of 2 (Buy), which, when combined with a positive Earnings ESP, indicates a high likelihood of another earnings beat [6]. - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [4].

Financial Performance - Diluted net income per common share for Q3 2024 was $1.86, up from $1.69 in Q3 2023, and for the nine months ended September 30, 2024, it was $4.08 compared to $5.99 in the same period last year [154]. - Net income for Q3 2024 was $146.7 million, representing a 10.6% increase from $132.6 million in Q3 2023 [169]. - Basic net income per common share increased to $1.87, up 10.7% from $1.69 in Q3 2023 [170]. - Return on average assets improved to 1.15%, up from 1.08% in Q3 2023, marking a 6.5% increase [170]. - Return on average shareholders' equity increased to 9.07%, a 4.7% rise from 8.66% in the same quarter last year [170]. Revenue and Income Sources - Net interest income for Q3 2024 was $351.5 million, a 10.8% increase from $317.2 million in Q3 2023 [169]. - Noninterest income for Q3 2024 increased by $24.4 million, or 26.9%, but decreased by $94.5 million, or 26.7%, for the nine months compared to the same periods in 2023 [157][158]. - Income from wealth management increased by $6.8 million (29.7%) and $14.0 million (20.2%) for the three and nine months ended September 30, 2024, compared to the same periods in 2023, driven by a rise in the number of wealth management advisors and strong market performance [181]. - Commissions and fees from investment services at Pinnacle Asset Management rose by approximately $4.6 million and $9.3 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023 [181]. Loan and Deposit Growth - Total loans increased to $34.3 billion at September 30, 2024, up from $32.7 billion at December 31, 2023, representing a growth of $1.6 billion, or 5.0% [162]. - Total deposits rose to $41.0 billion at September 30, 2024, an increase of $2.4 billion, or 6.3%, from $38.5 billion at December 31, 2023 [162]. - Loans, net of allowance for credit losses, grew to $33.92 billion, a 4.9% increase from $32.32 billion as of December 31, 2023 [170]. - Total loans outstanding increased to $34.3 billion at September 30, 2024, up from $32.7 billion at December 31, 2023 [208]. Expenses and Efficiency - Noninterest expense increased by $46.1 million, or 21.6%, for Q3 2024, and by $136.5 million, or 21.4%, for the nine months compared to the same periods in 2023 [159]. - The efficiency ratio was 55.6% for Q3 2024, compared to 52.3% in Q3 2023, indicating an increase in expenses relative to revenue generation [160]. - Total noninterest expense increased by 21.6% and 21.4% for the three and nine months ended September 30, 2024, totaling $259.3 million and $773.1 million, respectively [194]. - Salaries and employee benefits expenses rose by $29.9 million and $57.9 million for the three and nine months ended September 30, 2024, largely due to an increase in the associate base and annual merit increases [195]. Credit Quality and Allowance for Losses - The allowance for credit losses was $391.5 million at September 30, 2024, up from $353.1 million at December 31, 2023, reflecting increased reserves due to macroeconomic conditions [163]. - The provision for credit losses was $26.3 million and $90.9 million for the three and nine months ended September 30, 2024, compared to $26.8 million and $77.3 million for the same periods in 2023 [177]. - Total loans past due 30 to 89 days decreased to $60.2 million as of September 30, 2024, from $116.4 million at December 31, 2023, representing a reduction of approximately 48.3% [215]. - Total loans past due 90 days or more increased to $82.0 million as of September 30, 2024, compared to $33.4 million at December 31, 2023, indicating a rise of approximately 145.0% [215]. Capital and Funding - Shareholders' equity rose to $6.3 billion as of September 30, 2024, compared to $6.0 billion at December 31, 2023 [236]. - The company has authorized a share repurchase program for up to $125.0 million, effective through March 31, 2025, but did not repurchase any shares during 2023 or the first nine months of 2024 [240]. - Pinnacle Bank had approximately $6.5 billion in available Federal Reserve discount window lines of credit as of September 30, 2024 [266]. - The company has approximately $192.0 million in cash available to support Pinnacle Bank's capital needs as of September 30, 2024 [238]. Economic and Market Conditions - The Federal Reserve has reduced short-term interest rates by 50 basis points in 2024, impacting the company's interest rate outlook [176]. - The company's earnings simulation model indicated a 0.28% increase in net interest income with a 100 bps increase in rates as of September 30, 2024 [248]. - The economic value of equity (EVE) model showed a decrease of 6.38% with a 100 bps increase in rates as of September 30, 2024 [252]. - Scheduled loan payments provide a stable source of funds, but loan payoffs and deposit flows are significantly influenced by interest rates and economic conditions [264].

Pinnacle Financial Partners, Inc. (NASDAQ:PNFP) Q3 2024 Results Conference Call October 16, 2024 9:30 AM ET Company Participants Terry Turner - Chief Executive Officer Harold Carpenter - Chief Financial Officer Conference Call Participants Brett Rabatin - Hovde Group Russell Gunther - Stephens Stephen Scouten - Piper Sandler Ben Gerlinger - Citi Anthony Elian - JPMorgan Catherine Mealor - KBW Samuel Varga - UBS Brian Martin - Janney Tim Mitchell - Raymond James Operator Good morning, everyone, and welcome t ...