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Dec 31, 2022
Pinnacle Financial Q4 2022 Earnings Report
Pinnacle Financial reported diluted EPS of $1.76, ROAA of 1.29%, and ROATCE of 15.95% for Q4 2022, with annualized linked-quarter loans growing 19.2% and deposits growing 15.1%.
Key Takeaways
Pinnacle Financial Partners reported a net income per diluted common share of $1.76 for Q4 2022, a 2.9% increase compared to Q4 2021. Total assets reached $42.0 billion, a 9.1% year-over-year increase. The company experienced loan growth and an increase in net interest income, though noninterest income declined due to lower income from BHG and mortgage loan sales.
Net income per diluted common share increased by 2.9% year-over-year to $1.76.
Annualized linked-quarter loans grew by 19.2%, and deposits grew by 15.1%.
Total assets increased by 9.1% year-over-year to $42.0 billion.
Net interest margin increased to 3.60% for the fourth quarter of 2022.
Pinnacle Financial
Pinnacle Financial
Forward Guidance
The operating environment for banks in 2023 is expected to be challenging with an uncertain macro environment. The company will focus on strong profitability and earnings growth, directing efforts towards deposit acquisition and retention with specialized deposit products.
Positive Outlook
- Operate in some of the best banking markets in the country.
- Have an organic growth model that differentiates itself.
- Will direct efforts toward both strong profitability and earnings growth.
- Senior leadership and associates are all in and stand ready to meet the challenges ahead.
- Have some of the most experienced relationship managers and credit officers in our markets.
Challenges Ahead
- The outlook for the macro environment in 2023 is uncertain at best.
- Increased wages and inflation will have a bearing on our expense run rates as we enter 2023.
- Our incentive burden which would be lower should our results not achieve our 2023 cash incentive plan targets.
- Several projects and events slated for 2023 which, we could postpone or cancel to reduce our non-compensation cost for this year.
- Competition for deposits remained fierce.