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Mar 31, 2021
Pinnacle Financial Q1 2021 Earnings Report
Reported diluted EPS of $1.61, ROAA of 1.42% and ROTCE of 17.16% for Q1 2021.
Key Takeaways
Pinnacle Financial Partners reported a strong first quarter in 2021, with diluted earnings per share of $1.61, a return on average assets of 1.42%, and a return on tangible common equity of 17.16%. The firm experienced growth in loans and deposits, and revenues increased by 19.6% year-over-year.
Diluted earnings per share reached $1.61, the highest ever reported for a calendar quarter.
Loans increased by $2.7 billion year-over-year, reflecting a 13.2% growth rate.
Deposits grew by $7.0 billion year-over-year, a 32.6% increase.
The company attracted 25 new revenue producers, continuing its recruiting success.
Forward Guidance
Pinnacle Financial anticipates high-single digit loan growth in 2021, excluding the impact of the PPP program, and expects meaningful core deposit growth as the post-COVID economy emerges.
Positive Outlook
- Optimistic about loan growth picking up in the back half of the year
- Expect meaningful core deposit growth this year
- Believe BHG's 2021 revenues will exceed previous expectations
- Increased number of mortgage originators will provide for another solid year for our mortgage origination business.
- Aim for top-quartile peer performance with respect to return on tangible common equity, as well as tangible book value per share growth
Challenges Ahead
- Significant headwinds of excess borrower liquidity
- CRE paydowns
- Limited loan demand
- Pandemic negatively impacted results and resulted in reduced cash and equity incentives charges in 2020.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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