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Sep 30, 2022
Pinnacle Financial Q3 2022 Earnings Report
Reported diluted EPS of $1.91, ROAA of 1.42% and ROATCE of 17.40% for the third quarter of 2022.
Key Takeaways
Pinnacle Financial Partners reported a strong third quarter in 2022, with a 9.1% increase in earnings per diluted share compared to the same quarter last year, driven by organic revenue growth of 20.2%. The company's annualized linked-quarter loan growth was 20.9%, and core deposits grew by 9.8%.
Earnings per diluted share increased by 9.1% year-over-year.
Organic revenue growth was 20.2% year-over-year.
Annualized linked-quarter loan growth reached 20.9%.
Core deposits grew at an annualized rate of 9.8%.
Pinnacle Financial
Pinnacle Financial
Forward Guidance
Pinnacle Financial Partners estimates their total 2022 revenues to approximate a high-teens percentage increase over that of 2021 and total 2022 noninterest expense should approximate a high-teens percentage increase over that of 2021.
Positive Outlook
- Loan growth contributed to an increase of $41.2 million in net interest income compared to the second quarter of 2022.
- The rising short-term rate environment contributed to an increase of $41.2 million in net interest income compared to the second quarter of 2022.
- Estimate total 2022 revenues (net interest income and noninterest income) should approximate a high-teens percentage increase over that of 2021.
- Hiring model will continue to provide even more opportunities to add revenue producers this year.
- Believe this experience translates into a client base of seasoned borrowers.
Challenges Ahead
- Residential mortgage lending declines.
- Winding down of PPP lending.
- Declining stock market valuations.
- Broader impact of inflation.
- Compensation costs increased approximately 15.6 percent over the same quarter last year, due primarily to increased opportunities to hire the best bankers and investment professionals in our markets.