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Dec 31, 2020
Pinnacle Financial Q4 2020 Earnings Report
Reported diluted EPS of $1.42, ROAA of 1.24% and ROTCE of 15.37% for Q4 2020.
Key Takeaways
Pinnacle Financial Partners reported a strong core performance in Q4 2020, with diluted EPS of $1.42, a 12.7% increase compared to Q4 2019. Adjusted diluted EPS was $1.58, reflecting a 24.4% year-over-year increase. Loan and deposit growth remained robust, and the company increased its book value per share by 8.6%.
Diluted earnings per share grew over 12 percent (over 24 percent on an adjusted basis) compared to Q4 2019.
Loans reached $22.4 billion, a 13.3% increase from Dec. 31, 2019.
Deposits hit a record $27.7 billion, a 37.3% increase from Dec. 31, 2019.
The board of directors has authorized a new share repurchase plan for up to $125 million of the Company’s common stock.
Forward Guidance
Pinnacle anticipates a more stable operating environment in 2021 and aims for top-quartile peer performance with respect to return on tangible common equity and tangible book value per share growth. The firm expects high-single to low double-digit loan growth in 2021, excluding the impact of the PPP program, and anticipates strong growth in total fee revenues.
Positive Outlook
- Continued focus on reducing deposit costs for both client and wholesale funding sources.
- Expectation that liquidity levels will return to historical balance sheet levels over the next two years.
- Optimism that BHG will have another great year in 2021 with strong business flows headed into Q1 2021.
- Belief in a great hiring platform with more mortgage originators than ever and operation in very attractive housing markets.
- Anticipation of strong growth in total fee revenues in 2021.
Challenges Ahead
- Net interest margin negatively impacted by PPP loans and excess liquidity.
- Potential modest decrease in mortgage revenues due to belief that long-term rates may increase in 2021.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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