In This Article:
-
Revenue Growth: 14.2% increase in Q1 2025 over Q1 2024.
-
Adjusted EPS Growth: 24.2% increase in Q1 2025 over Q1 2024.
-
Tangible Book Value Per Share Growth: 10.6% increase in Q1 2025 over Q1 2024.
-
Loan Growth: End-of-period loans increased 7.3% linked quarter annualized.
-
Deposit Growth: $1.6 billion increase in Q1 2025.
-
Net Interest Margin (NIM): Flattish at 3.21% for Q1 2025.
-
Net Charge-Offs: Dropped to 16 basis points in Q1 2025 from 24 basis points in Q4 2024.
-
BHG Fee Revenues: Over $20 million in Q1 2025, up from $12.1 million in Q4 2024.
-
Expense Outlook: Estimated expenses for 2025 between $1.3 million to $1.15 million.
Release Date: April 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Pinnacle Financial Partners Inc (NASDAQ:PNFP) reported strong revenue growth, with a 14.2% increase in Q1 2025 compared to Q1 2024.
-
The company achieved a 24.2% growth in adjusted EPS in Q1 2025 over Q1 2024, despite a challenging operating environment.
-
Pinnacle Financial Partners Inc (NASDAQ:PNFP) has compounded tangible book value per share at a 10.6% rate from Q1 2024 to Q1 2025.
-
The firm continues to attract highly experienced revenue producers, with 37 new hires in Q1 2025, contributing to its growth.
-
Deposit growth was a highlight, with a $1.6 billion increase in Q1 2025, following a $1.9 billion increase in the previous quarter.
Negative Points
-
The economic environment remains volatile, which could impact future growth and performance.
-
There is uncertainty regarding the broader economy, with potential impacts on pipeline development and client confidence.
-
The company is facing challenges with commercial real estate concentration, which has been a drag on legacy markets.
-
Pinnacle Financial Partners Inc (NASDAQ:PNFP) downgraded an apartment loan in Atlanta, which increased non-performing assets.
-
The company anticipates potential headwinds in deposit growth in Q2 2025 due to seasonal factors such as tax payments.
Q & A Highlights
Q: Did you change the baseline assumption under CECL for calculating reserves if you go to an adverse scenario? A: Harold Carpenter, Chief Financial Officer: We kept it unchanged, but we used the adverse scenario to influence where a lot of our qualitative assumptions go.
Q: Is the growth or higher target for BHG dependent on continued securitizations, or is there flexibility to place more through the bank sale channel? A: Harold Carpenter, Chief Financial Officer: They have plenty of room through the bank channel and believe there will be another ABS issuance towards the end of the year. They have capacity and liquidity in the bank channel to place their credits.