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Sep 30, 2023
Pinnacle Financial Q3 2023 Earnings Report
Reported diluted EPS of $1.69 and diluted EPS of $1.79 excluding investment losses.
Key Takeaways
Pinnacle Financial Partners reported a decrease in net income per diluted common share to $1.69 for Q3 2023, compared to $1.91 for Q3 2022. However, the company saw growth in loans and core deposits, each growing 10.1% annualized linked-quarter.
Core deposits increased by 10.1 percent annualized this quarter.
Loan growth during the third quarter of 2023 was $790 million, or 10.1 percent linked-quarter annualized.
Added 29 revenue producers during the third quarter.
Total assets at Sept. 30, 2023 were $47.5 billion, an increase of approximately $6.5 billion from Sept. 30, 2022.
Pinnacle Financial
Pinnacle Financial
Forward Guidance
Company expects to reduce exposure in loan segments with elevated risks for the next few quarters and believes BHG's fourth quarter results will not be as strong as the last two quarters.
Positive Outlook
- Continued to deliver outsized growth to our already strong client deposit base
- Core deposits increasing by 10.1 percent annualized this quarter
- FDIC summary of deposits reflects significant market share growth over 2022 in all our major markets
- Overall loan growth during the third quarter of 2023 was $790 million, or 10.1 percent linked-quarter annualized
- Net interest income increased year-over-year growth rate of 3.7 percent.
Challenges Ahead
- Net income per diluted common share decreased of 11.5 percent.
- Noninterest income decreased year-over-year of 13.4 percent.
- Income from the firm's investment in BHG declined year-over-year of 39.6 percent.
- Net interest margin declined on a linked-quarter basis by approximately 14 basis points
- Classified assets were up more than 100 percent over the same quarter last year.