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Jun 30, 2024
Pinnacle Financial Q2 2024 Earnings Report
Reported diluted EPS of $0.64 and net interest margin of 3.14 percent.
Key Takeaways
Pinnacle Financial Partners reported a decrease in net income per diluted common share to $0.64 for Q2 2024, compared to $2.54 for the same period in 2023. However, after adjustments for capital optimization and balance sheet repositioning initiatives, diluted EPS was $1.63, reflecting an annualized linked-quarter growth rate of 26.1 percent. The company saw net interest margin expansion and double-digit growth in most fee businesses.
Net income per diluted common share was $0.64, or $1.63 excluding impacts of capital optimization and balance sheet repositioning initiatives.
Total revenues were $366.6 million, or $438.7 million excluding certain adjustments, reflecting a 5.3 percent increase compared to the previous quarter.
Total assets reached $49.4 billion, an increase of $472.8 million from the previous quarter.
Net interest margin was 3.14 percent, compared to 3.04 percent for the first quarter of 2024.
Pinnacle Financial
Pinnacle Financial
Pinnacle Financial Revenue by Segment
Revenue by Segment
Service Charges Revenue
CapyFin.comInvestment Services Revenue
CapyFin.comInsurance Commissions Revenue
CapyFin.comMortgage Loan Gains Revenue
CapyFin.comTrust Fees Revenue
CapyFin.comOther Noninterest Income Revenue
CapyFin.com Forward Guidance
Pinnacle Financial anticipates continued margin expansion for the remainder of 2024 and expects BHG's quarterly contribution to be consistent with Q2 levels. The company is increasing its accrual for annual cash incentive plan payouts to approximately 85 percent of target.
Positive Outlook
- Anticipates continued margin expansion for the remainder of 2024
- Expectation that BHG's quarterly contribution to be fairly consistent with Q2 contribution for the remainder of 2024.
- Increasing accrual for annual cash incentive plan payouts to approximately 85 percent of target level payouts.
- Outsized loan and deposit growth.
- Strong hiring across the franchise, particularly in newer markets.
Challenges Ahead
- Continued margin expansion depends on obtaining appropriate pricing on new and renewing loans.
- Continued margin expansion depends on stability of noninterest bearing deposit balances.
- Continued margin expansion depends on relationship managers working extremely hard to keep deposit pricing well contained.
- Expense results for the second quarter are generally consistent with where the company thought they would be excluding the costs of the balance sheet restructuring and capital optimization initiatives.
- Net charge-offs increased in the second quarter primarily due to the continued deterioration of the value of the underlying collateral of an owner-occupied commercial real estate loan.