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Dec 31, 2023
Pinnacle Financial Q4 2023 Earnings Report
Pinnacle Financial reported a decrease in diluted EPS and an increase in total assets.
Key Takeaways
Pinnacle Financial Partners reported a diluted EPS of $1.19 for Q4 2023, a 32.4% decrease compared to Q4 2022. Total assets increased by 14.3% year-over-year, reaching $48.0 billion. The firm restructured bank owned life insurance contracts (BOLI) and accrued for future payments to the FDIC pursuant to a special insurance assessment.
Diluted EPS was $1.19, or $1.68 when excluding FDIC special assessment and BOLI restructuring charges.
Total assets reached $48.0 billion, a 14.3% increase year-over-year.
Loans grew by 12.5% and core deposits grew by 7.8% during 2023.
Net interest margin remained flat at 3.06% compared to the previous quarter.
Forward Guidance
Pinnacle Financial anticipates a more favorable macro environment in 2024, with potential for a 'soft landing,' lower inflation, and anticipated interest rate adjustments, which may lead to stronger earnings compared to 2023.
Positive Outlook
- Potential for a 'soft landing' in the economy.
- Anticipated direction of interest rates.
- Opportunity to manage the balance sheet for stronger earnings.
- Continued emphasis on pricing.
- Ongoing opportunities due to the strength of southeastern markets.
Challenges Ahead
- Stubborn inverted yield curve.
- Many issues remain in the macro environment.
- BHG's results declined from the previous quarter.
- Revenue and EPS were less than originally targeted.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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