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Dec 31, 2019
Pinnacle Financial Q4 2019 Earnings Report
Reported diluted EPS of $1.26, ROAA of 1.38% and ROTCE of 15.41% for Q4 2019.
Key Takeaways
Pinnacle Financial Partners reported a net income per diluted common share of $1.26 for the quarter ended Dec. 31, 2019, compared to $1.23 for the quarter ended Dec. 31, 2018, representing an increase of 2.4 percent.
Loans reached a record $19.8 billion, up 11.7% year-over-year.
Deposits totaled $20.2 billion, reflecting a 7.1% year-over-year increase.
Revenues for the quarter were $253.6 million, up 2.5% from the fourth quarter of 2018.
Return on average assets was 1.38% for the fourth quarter of 2019.
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 anticipates continued stabilization in the yield curve, which should help stabilize the net interest margin in 2020. Expense growth is expected to be in the mid- to high-single digit percentage increases for 2020, with cash incentives targeted at approximately $50 million.
Positive Outlook
- High-single to low-double digit loan growth is achievable in 2020.
- Focus on growing low-cost core deposits.
- Continued focus on maintaining asset quality and growing EPS.
- Anticipated continued stabilization in the yield curve.
- Expect to keep expense growth to the mid- to high-single digit percentage increases for 2020.
Challenges Ahead
- Volatility in the interest rate environment impacted margins during 2019.
- Increased expense run rates due to the addition of Advocate Capital.
- Continued hiring, especially with the build out in Atlanta, will increase expenses.
- If revenues do not materialize at the planned growth rates, there may be a need to reduce cash incentives.
- Interest rate backdrop during 2019.