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Sep 30, 2024
Pinnacle Financial Q3 2024 Earnings Report
Pinnacle Financial reported a strong Q3 2024 with increased EPS and net interest margin.
Key Takeaways
Pinnacle Financial Partners reported a net income per diluted common share of $1.86 for Q3 2024, a 10.1% increase compared to Q3 2023. The firm experienced double-digit linked-quarter annualized growth in earning assets and core deposits, along with an expanding net interest margin.
Diluted earnings per share grew to $1.86 in the third quarter.
Added 126 new revenue producers thus far this year.
Total assets reached $50.7 billion, reflecting a linked-quarter annualized increase of 10.8 percent.
Core deposits are up more than $2.0 billion so far this year.
Pinnacle Financial
Pinnacle Financial
Forward Guidance
Pinnacle Financial expects continued growth and capitalization on a declining interest rate environment.
Positive Outlook
- Well positioned to capitalize on what appears to be a declining interest rate environment.
- Hiring pipelines remain very active heading into the last quarter of 2024.
- Fully expect 2025 to yield double-digit growth.
- Expect significant investment in new people and facilities should enable the firm to continue to grow its core funding.
- Optimistic that the firm will see increases in the pace of loan growth as it closes out 2024 and enters 2025.
Challenges Ahead
- Expense results for the third quarter came in slightly higher than originally anticipated at the beginning of the quarter, with most of this attributable to personnel costs.
- BHG’s contribution now representing approximately 8 percent of our third quarter pre-tax, pre-provision revenues.
- BHG reserves for on-balance sheet loan losses were $237 million, or 9.1 percent of loans held for investment at Sept. 30, 2024
- BHG increased its accrual for estimated losses attributable to loan substitutions and prepayments to $454 million, or 6.2 percent of the unpaid balances on loans that were previously purchased by BHG’s community bank network, at Sept. 30, 2024
- It is the firm's intent to continue reducing its exposure to non-owner occupied commercial real estate, multifamily and construction and land development loans from its level at Sept. 30, 2024 of 243.3 percent of total risk-based capital to below 225 percent.