Pinnacle Financial Partners(PNFP) - 2025 Q2 - Quarterly Results

Financial Performance - Pinnacle Financial Partners reported diluted EPS of $2.00 for Q2 2025, a 212.5% increase from $0.64 in Q2 2024[2] - Total revenues for Q2 2025 were $505.0 million, up 37.8% year-over-year from $366.6 million in Q2 2024[11] - Pre-tax, pre-provision net revenue (PPNR) for Q2 2025 was $218.5 million, compared to $95.2 million in Q2 2024, reflecting a growth of over 100%[9] - Net income available to common shareholders for the second quarter of 2025 was $154.7 million, a significant increase of 213.5% compared to $49.4 million in the same quarter of 2024[31] - Basic net income per common share for Q2 2025 was $2.01, up from $0.65 in Q2 2024, representing a growth of 209.2%[31] - For the first half of 2025, net income available to common shareholders was $291,352, significantly higher than $169,510 in the same period of 2024, marking a 71.8% increase year-over-year[51] Revenue and Income Growth - Total revenues for Q2 2025 were approximately $505.0 million, marking a 37.8% increase year-over-year[16] - Adjusted total revenues for Q2 2025 were $505.0 million, a 15.1% increase from $438.7 million in Q2 2024[12] - Noninterest income for Q2 2025 was $47.9 million, up $6.1 million from Q2 2024, with a notable contribution from equity investments[15] - Wealth management revenues increased to $32.3 million in Q2 2025, up 16.4% from $27.8 million in Q2 2024[15] - Income from the investment in Banker's Healthcare Group (BHG) rose to $26.0 million in Q2 2025, a 39.3% increase from $18.7 million in Q2 2024[15] - Noninterest income for the first half of 2025 totaled $223.9 million, compared to $144.4 million in the same period of 2024, an increase of 55.2%[31] Asset and Deposit Growth - Total assets reached $54.8 billion as of June 30, 2025, marking an increase of approximately $5.4 billion from June 30, 2024[7] - Total deposits rose to $45.0 billion as of June 30, 2025, up from $39.8 billion a year earlier, marking a growth of 13.4%[30] - Noninterest-bearing deposits rose by $133.4 million in Q2 2025, totaling a year-to-date increase of $470.3 million or approximately 11.5% annualized[8] - Total loans reached $37,105,164,000 in June 2025, up from $36,136,746,000 in March 2025, indicating a growth of about 2.68%[34] - Core deposits totaled $39.76 billion at the end of June 2025, slightly down from $40.01 billion in March 2025, reflecting a decrease of 0.60%[45] Expense Management - Noninterest expense for Q2 2025 was $286.4 million, up 5.5% from $271.4 million in Q2 2024[13] - Salaries and employee benefits increased to $181.2 million in Q2 2025, a 20.7% rise from $150.1 million in Q2 2024[18] - The efficiency ratio improved to 55.5% for the first half of 2025, down from 57.5% in the same period of 2024, indicating enhanced operational efficiency[31] - The efficiency ratio improved to 56.72% in June 2025 from 59.52% in March 2025, indicating enhanced operational efficiency[47] Credit Quality and Provisions - The company reported a provision for credit losses of $24.2 million in Q2 2025, compared to $30.2 million in Q2 2024, showing a decrease of 19.9%[31] - Nonperforming assets totaled $162.01 million as of June 30, 2025, a decrease from $175.23 million in the previous quarter, indicating a reduction of 7.0%[43] - The allowance for credit losses was $422,125,000 in June 2025, slightly up from $417,462,000 in March 2025[34] - The allowance for credit losses to nonaccrual loans ratio was 268.6% as of June 30, 2025, compared to 243.3% in the previous quarter, showing an increase in coverage[43] Shareholder Returns - A quarterly cash dividend of $0.24 per common share was declared, payable on August 29, 2025[20] - The book value per common share increased to $82.79 as of June 30, 2025, up from $80.46 at the end of 2024[19] - The common dividends paid increased to $0.48 per share, totaling $37,766,000 for the period ending December 31, 2024[33] Capital and Equity - Pinnacle Financial's total shareholders' equity reached $6.6 billion as of June 30, 2025, up from $6.2 billion at the same time last year, indicating a year-over-year increase of 7.5%[30] - The Tier one risk-based capital ratio was 11.2% as of June 30, 2025, unchanged from the previous quarter, indicating stable capital adequacy[43] - The ratio of tangible common equity to tangible assets was 8.60% in June 2025, consistent with the previous quarter and the same period last year[53] Employee Metrics - The number of full-time equivalent employees increased to 3,627 in June 2025, up from 3,595 in March 2025, a growth of 0.89%[45] - The annualized revenues per full-time equivalent employee rose to $558.5 thousand in June 2025, compared to $522.2 thousand in March 2025, an increase of 6.93%[45]