Financial Performance - Pinnacle Financial Partners reported a diluted EPS of $1.77 for Q1 2025, up 12.7% from $1.57 in Q1 2024; adjusted diluted EPS was $1.90, a 24.2% increase from $1.53[1][2]. - Pre-tax income for Q1 2025 was $170,407 thousand, up from $151,275 thousand in Q1 2024, indicating a 12.7% increase[36]. - Basic earnings per common share for Q1 2025 were $1.78, compared to $1.58 in Q1 2024, marking a 12.7% increase[38]. - Diluted earnings per common share for Q1 2025 were $1.77, up from $1.57 in Q1 2024, reflecting a 12.8% increase[38]. - Net income available to common shareholders was $136,610 thousand for the quarter, compared to $120,146 thousand in the same quarter of the previous year, reflecting a 13.66% increase[28]. Asset and Loan Growth - Year-over-year loan growth was 9.0%, with total loans reaching $36.1 billion as of March 31, 2025, compared to $33.2 billion a year earlier[3][5]. - Total assets increased to $54.3 billion, reflecting a year-over-year growth of 11.0%[4]. - Total assets reached $54,254,804 thousand, representing a 3.16% increase from $52,589,449 thousand in December 2024[28]. - Total loans increased to $36,136,746 thousand in March 2025, up 1.83% from $35,485,776 thousand in December 2024[28]. - The company anticipates loan growth guidance of 8% to 11% for 2025 compared to 2024 year-end loan balances[5]. Income and Revenue - Net interest income rose to $364.4 million, a 14.6% increase from $318.0 million in Q1 2024; net interest margin improved to 3.21% from 3.04%[8][9]. - Noninterest income decreased to $98.4 million, down 10.6% year-over-year, but adjusted noninterest income increased by 12.9% to $110.9 million[9][10]. - Total revenues excluding adjustments for Q1 2025 were $475,366 thousand, compared to $416,325 thousand in Q1 2024, reflecting a 14.2% year-over-year growth[36]. - Noninterest income totaled $98,426 thousand in March 2025, down from $111,55 thousand in Q4 2024, primarily due to a decline in other noninterest income[25]. Expenses and Efficiency - Noninterest expense for Q1 2025 was $275.5 million, a 13.7% increase from $242.4 million in Q1 2024; adjusted noninterest expense rose by 17.2%[11][12]. - Salaries and employee benefits increased by 17.9% to $172.1 million, driven by headcount growth and higher incentive payouts[14]. - The efficiency ratio improved to 59.52% in March 2025, compared to 63.37% in March 2024[28]. - The efficiency ratio for Q1 2025 was 59.52%, compared to 56.61% in Q1 2024, showing a decline in efficiency[36]. Credit Quality and Allowances - The annualized net loan charge-offs to average loans ratio improved to 0.16% compared to 0.24% in the previous quarter[15]. - Nonperforming assets to total loans increased to 0.48% from 0.42% in the previous quarter[15]. - The allowance for credit losses to total loans was 1.16%, consistent with the previous quarter[15]. - Provision for credit losses decreased to $16.96 million in Q1 2025 from $29.65 million in Q4 2024, indicating improved credit quality[25]. - Nonaccrual loans increased to $171,570 thousand in March 2025, up 16.0% from $147,825 thousand in December 2024[33]. Capital and Equity - Shareholders' equity to total assets was 12.1%, a slight decrease from 12.2% as of December 31, 2024[15]. - The book value per common share increased to $81.57 from $80.46 at the end of 2024[15]. - The tangible book value per common share at the end of Q1 2025 was $57.47, up from $51.98 in Q1 2024, indicating an increase of 10.5%[38]. - Net tangible common equity rose to $4,456,749 thousand in Q1 2025, compared to $4,344,072 thousand in Q4 2024, an increase of 2.6%[41]. Employee Metrics - The number of employees (full-time equivalent) increased to 3,595 in March 2025, up from 3,565.5 in December 2024[35]. - The annualized revenues per full-time equivalent employee were $522.2 thousand, a decrease from $530.4 thousand in the previous quarter[35]. - The total assets per full-time equivalent employee increased to $15,092 thousand in March 2025, compared to $14,750 thousand in December 2024[35]. Market Position and Recognition - Pinnacle Financial is recognized as the No. 1 bank in the Nashville-Murfreesboro-Franklin MSA according to 2024 FDIC deposit data[17]. - Pinnacle Financial has been recognized as one of America's Best Banks to Work For for 12 consecutive years[17]. - The firm plans to continue expanding its operations in urban markets across the Southeast[18].

Company Overview - Pinnacle Financial (PNFP) shares increased by 10.4% to $96.34 in the last trading session, following a significant volume of trading, contrasting with a 12.4% loss over the previous four weeks [1][2] - The stock's recent surge was influenced by a broader market rally, particularly due to President Trump's announcement of a 90-day tariff pause for non-retaliating nations, which positively impacted investor sentiment [2] Earnings Expectations - Pinnacle Financial is projected to report quarterly earnings of $1.82 per share, reflecting a year-over-year increase of 19% [2] - Expected revenues for the upcoming report are $478.5 million, marking an 11.8% rise compared to the same quarter last year [2] Earnings Estimate Revisions - The consensus EPS estimate for Pinnacle Financial has been slightly revised upward over the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [4] - Monitoring the earnings estimate revisions is crucial, as they are strongly linked to near-term stock price movements [3] Industry Context - Pinnacle Financial operates within the Zacks Banks - Southeast industry, which includes other regional banks like WesBanco (WSBC) [4] - WesBanco's consensus EPS estimate has decreased by 0.4% over the past month to $0.39, representing a year-over-year decline of 30.4% [5]

Core Viewpoint - Analysts expect Pinnacle Financial (PNFP) to report quarterly earnings of $1.82 per share, reflecting a year-over-year increase of 19% and revenues of $478.5 million, up 11.8% from the previous year [1]. Earnings Estimates - Over the last 30 days, there has been a 0.1% upward revision in the consensus EPS estimate for the quarter, indicating a collective reassessment by covering analysts [2]. - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Key Financial Metrics - Analysts project a 'Net Interest Margin' of 3.2%, up from 3% in the same quarter last year [5]. - The 'Efficiency Ratio' is expected to be 55.5%, compared to 56.6% a year ago [5]. - 'Nonaccrual loans' are projected to reach $157.20 million, up from $108.33 million in the same quarter last year [6]. - The estimated 'Average balances - Total interest-earning assets' is $47.63 billion, compared to $43.62 billion a year ago [6]. - 'Total nonperforming assets' are expected to be $158.91 million, up from $111.09 million in the same quarter last year [7]. - 'Net Interest Income' is projected at $365.05 million, compared to $318.03 million in the same quarter last year [7]. - The consensus estimate for 'Total noninterest income' stands at $113.42 million, compared to $110.10 million in the same quarter last year [8]. Stock Performance - Over the past month, Pinnacle Financial shares have recorded returns of -12.4%, compared to the Zacks S&P 500 composite's -13.5% change [8].

Financial Assets and Risks - As of December 31, 2024, the company had $1.0 billion in bank owned life insurance (BOLI) contracts, which are illiquid long-term assets providing tax savings[217] - The company is exposed to liquidity, credit, and interest rate risks associated with BOLI investments, which could adversely affect its financial condition and results of operations[217] - The company faces substantial competition from various financial service providers, including non-banks, which may have lower operating costs and regulatory constraints[229] - Regulatory changes, such as the Community Reinvestment Act, may impose additional requirements on the company, affecting its competitive position[231] - The financial services industry is becoming more competitive due to technological advancements and consolidation, allowing non-banks to offer traditional banking products[232] - Climate change poses risks to the company's operations and customer relationships, potentially leading to market volatility and disruptions[233] - The company is facing transition risks due to changing climate conditions, which may restrict business operations and increase expenses[234] Risk Management and Compliance - The company has implemented a risk management framework to identify and manage various risks, including credit, market, and operational risks, but there is no assurance of its effectiveness[218] - Cybersecurity risks have significantly increased, particularly with the rise of mobile-payment and internet-based product offerings, which could negatively impact the company's operations and financial condition[222] - The company is subject to regulatory oversight and litigation, which could result in significant financial liabilities and reputational harm[240] - The company operates in a highly regulated industry, with potential increases in operating costs due to changes in regulations and compliance requirements[260] - Regulatory scrutiny may increase, impacting the company's operational flexibility and growth potential, particularly in relation to mergers and acquisitions[261] - Non-compliance with anti-money laundering regulations could result in fines or sanctions, restricting the company's ability to make acquisitions[269] Growth and Expansion Strategies - The company is continuously evaluating and may implement new lines of business or products, but these efforts carry substantial risks and uncertainties[236] - The company plans to expand in high-growth markets in the southern U.S. but faces risks related to management of growth and operational costs[250] - Regulatory and economic factors may adversely affect the company's growth and expansion plans, potentially allowing competitors to gain market share[253] - The company must successfully implement improvements to its information and control systems to accommodate growth, which may require additional expenditures[254] - Failure to address issues related to recent expansions could materially affect the company's financial condition and results of operations[255] - The company plans to focus on organic growth in existing markets while evaluating merger and acquisition opportunities in select southern U.S. markets[258] - The company may face risks related to future acquisitions, including maintaining loan quality amid significant loan growth and attracting sufficient deposits to fund anticipated growth[256] Financial Performance and Shareholder Considerations - The trading price of the company's capital stock may be volatile, influenced by various factors including financial performance and market conditions[270] - The ability to declare and pay dividends is limited and depends on various factors including capital levels and earnings performance[272] - Future dividends will be declared at the discretion of the board of directors and may rely on cash held and dividends received from Pinnacle Bank[273] - Federal and state regulations restrict the amount of dividends that can be declared, particularly under Basel III capital rules[274] - The company may issue additional common stock or equity securities, which could dilute existing shareholders' ownership[276] - The Series B Preferred Stock dividends are non-cumulative and discretionary, meaning if not declared, they do not accrue[285] - As of December 31, 2024, Pinnacle Financial had approximately $133.0 million in outstanding junior subordinated debentures, which must be paid before any dividends on common or preferred stock[289] - Pinnacle Financial has an aggregate of $300 million of subordinated notes outstanding, which rank senior to common and preferred stock[291] - Holders of the Series B Preferred Stock have limited voting rights unless dividends are in arrears for six periods[287] - The Series B Preferred Stock ranks junior to all indebtedness and will only receive distributions after all liabilities are satisfied in case of liquidation[280] - The company may issue additional preferred stock or securities that could negatively affect the value of existing shares[277] - Pinnacle Financial's common stock and depositary shares have lower liquidity compared to larger companies on the Nasdaq Global Select Market, with trading volumes being relatively low[294] - The market prices of Pinnacle Financial's common stock and depositary shares have experienced significant fluctuations, which may not correlate with the company's performance[296] - The company’s amended charter allows the board to issue preferred stock without shareholder approval, potentially complicating acquisition attempts[298] - Investments in Pinnacle Financial's common stock or depositary shares are not insured by the FDIC, presenting inherent risks to shareholders[299] Technology and Innovation - The company has made significant investments in technology but may require additional investments to maintain operational efficiency[242] - The use of artificial intelligence and machine learning tools may introduce new costs and cybersecurity risks, potentially affecting business results[300]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Pinnacle Financial (PNFP) - Pinnacle Financial currently holds a Momentum Style Score of B, indicating a positive outlook based on price changes and earnings estimate revisions [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Price Performance - Over the past week, PNFP shares increased by 6.85%, outperforming the Zacks Banks - Southeast industry, which rose by 5.77% [5] - In a longer timeframe, PNFP's monthly price change is 7.94%, significantly higher than the industry's 0.89% [5] - Over the past quarter, PNFP shares have risen by 17.81%, and over the last year, they have gained 37.42%, compared to the S&P 500's increases of 5.33% and 26.85%, respectively [6] Trading Volume - The average 20-day trading volume for PNFP is 392,626 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the last two months, two earnings estimates for PNFP have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $7.49 to $7.60 [9] - For the next fiscal year, three estimates have moved upwards with no downward revisions, indicating a positive trend in earnings expectations [9] Conclusion - Considering the positive price performance, trading volume, and favorable earnings outlook, PNFP is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]

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]