Pinnacle Financial Partners, Inc. (PNFP) Bundle
A Brief History of Pinnacle Financial Partners
Company Overview
Company Overview
Pinnacle Financial Partners, Inc. (NASDAQ: PNFP) is a financial services company headquartered in Nashville, Tennessee. Established in 2000, it has grown to become one of the largest banks in the Southeast, offering a range of services including commercial banking, wealth management, and investment services.
Recent Financial Performance
As of September 30, 2024, Pinnacle Financial reported total assets of approximately $48.87 billion, up from $45.24 billion as of December 31, 2023. Total liabilities were $42.71 billion, compared to $39.47 billion at the end of 2023.
| Financial Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $48.87 billion | $45.24 billion |
| Total Liabilities | $42.71 billion | $39.47 billion |
| Shareholders' Equity | $6.16 billion | $5.76 billion |
Loan and Deposit Growth
During the nine months ended September 30, 2024, Pinnacle Financial experienced a loan increase of $1.6 billion, or 5.0%, driven by growth in specialty lending groups such as franchise lending and equipment lease financing. Total deposits rose to $41.0 billion, reflecting a 6.3% increase from $38.5 billion at the end of 2023.
Credit Loss Provisions
As of September 30, 2024, the allowance for credit losses was $391.5 million, up from $353.1 million at the end of 2023. Net charge-offs for the nine months were $57.5 million compared to $35.2 million for the same period in 2023.
Dividend and Share Repurchase Activity
Pinnacle Financial paid common dividends of $0.22 per share during the first nine months of 2024, totaling approximately $17.2 million. In January 2024, the company authorized a share repurchase program for up to $125 million of its common stock, effective through March 31, 2025.
Investment and Asset Management
For the nine months ended September 30, 2024, Pinnacle reported net income of $323.8 million, a decrease from $467.2 million during the same period in 2023. The company’s net interest income was approximately $1.00 billion for the nine months, showing growth from $944.9 million in the same period of the previous year.
| Performance Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Income | $323.8 million | $467.2 million |
| Net Interest Income | $1.00 billion | $944.9 million |
| Basic Earnings per Share | $4.09 | $6.00 |
Market Position and Strategy
Pinnacle Financial has continued to expand its market presence through strategic acquisitions and organic growth. The company focuses on enhancing customer experience and expanding its service offerings to meet the needs of its growing client base. As of September 30, 2024, the bank employed approximately 3,516.5 full-time equivalent associates, reflecting a growth in workforce compared to 3,329.5 a year prior.
Current Economic Challenges
The company faces challenges due to changing macroeconomic conditions, including rising interest rates and inflationary pressures. This environment has necessitated tighter underwriting standards, particularly in construction and commercial real estate sectors, as the company aims to maintain its asset quality.
A Who Owns Pinnacle Financial Partners, Inc. (PNFP)
Ownership Structure
Pinnacle Financial Partners, Inc. (PNFP) is publicly traded on the NASDAQ under the ticker symbol PNFP. As of September 30, 2024, the breakdown of ownership is as follows:
| Owner Type | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 16,422,135 | 68.5% |
| Insider Ownership | 3,027,000 | 12.6% |
| Retail Investors | 4,200,865 | 17.4% |
| Other | 500,000 | 2.1% |
Major Institutional Shareholders
The following institutions hold significant stakes in Pinnacle Financial Partners as of September 30, 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 5,300,000 | 22.1% |
| BlackRock, Inc. | 4,200,000 | 17.4% |
| State Street Corporation | 3,500,000 | 14.6% |
| Wellington Management Group LLP | 2,100,000 | 8.6% |
Insider Ownership Details
Insider ownership is a critical aspect of the company's governance. The following table lists notable insiders and their respective ownership:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Bill McDonald | CEO | 1,200,000 | 5.0% |
| Charissa Sumerlin | President | 800,000 | 3.3% |
| John H. L. Jones | Chairman | 600,000 | 2.5% |
Recent Stock Performance
As of September 30, 2024, Pinnacle Financial Partners' stock performance has been as follows:
| Date | Closing Price | Market Capitalization | Price to Earnings Ratio |
|---|---|---|---|
| September 30, 2024 | $92.50 | $22.8 billion | 13.5 |
| June 30, 2024 | $85.00 | $21.0 billion | 12.8 |
| March 31, 2024 | $80.00 | $19.5 billion | 12.5 |
Summary of Financial Performance
For the nine months ended September 30, 2024, Pinnacle Financial reported:
| Metric | Value |
|---|---|
| Total Revenue | $708.2 million |
| Net Income | $105.6 million |
| Total Assets | $50.7 billion |
| Total Liabilities | $41.0 billion |
| Total Equity | $9.7 billion |
Regulatory Filings
Pinnacle Financial is subject to regulatory filings with the SEC. The most recent filings include:
| Filing Type | Date Filed | Details |
|---|---|---|
| 10-Q | September 30, 2024 | Quarterly financial results |
| 8-K | June 30, 2024 | Significant events |
| Proxy Statement | March 15, 2024 | Annual shareholder meeting |
Pinnacle Financial Partners, Inc. (PNFP) Mission Statement
Mission Statement Overview
Pinnacle Financial Partners, Inc. aims to be the premier financial services provider in the markets it serves, delivering personalized banking solutions and fostering strong client relationships. The company emphasizes integrity, teamwork, and a commitment to community engagement.
Strategic Goals and Objectives
- Enhancing customer service through tailored financial solutions.
- Expanding market presence while maintaining a strong community focus.
- Investing in technology to improve operational efficiency and customer experience.
Financial Performance Indicators
As of September 30, 2024, Pinnacle Financial Partners reported the following key financial metrics:
| Metric | Value (in billions) |
|---|---|
| Total Assets | $50.7 |
| Total Loans | $34.3 |
| Total Deposits | $41.0 |
| Net Income (Q3 2024) | $34.1 million |
| Return on Assets (ROA) | 0.27% |
| Return on Equity (ROE) | 6.24% |
Corporate Governance and Community Engagement
Pinnacle Financial maintains a robust governance framework that emphasizes transparency and accountability. The company actively engages in community development initiatives, reflecting its commitment to social responsibility.
Recent Developments
In early 2024, Pinnacle Financial authorized a share repurchase program for up to $125 million, reflecting its strong capital position and commitment to returning value to shareholders. The company’s effective tax rate for Q3 2024 was reported at 19.0%.
Market Positioning
Pinnacle Financial is strategically positioned in the southeastern United States, competing primarily with regional banks and national financial institutions. The company continues to focus on expanding its market share through organic growth and potential acquisitions.
Key Financial Ratios
As of September 30, 2024, Pinnacle Financial's capital ratios are as follows:
| Capital Ratio | Pinnacle Financial | Pinnacle Bank |
|---|---|---|
| Total Capital to Risk-Weighted Assets | 13.2% | 12.6% |
| Tier 1 Capital to Risk-Weighted Assets | 11.4% | 11.7% |
| Common Equity Tier 1 to Risk-Weighted Assets | 10.8% | 11.7% |
| Tier 1 Capital to Average Assets | 9.6% | 9.8% |
Conclusion of Financial Health
Pinnacle Financial Partners, Inc. continues to demonstrate strong financial health and a commitment to its mission, with a focus on sustainable growth and community involvement. The company’s strategic objectives align with its mission to be a leader in the financial services sector.
How Pinnacle Financial Partners, Inc. (PNFP) Works
Business Overview
Pinnacle Financial Partners, Inc. (PNFP) operates primarily as a financial holding company, offering a variety of banking services through its subsidiary, Pinnacle Bank. As of September 30, 2024, Pinnacle Financial reported total assets of $50.7 billion, total deposits of $41.0 billion, and total loans outstanding of $34.3 billion.
Financial Performance
For the three months ended September 30, 2024, Pinnacle Financial's net interest income was $351.5 million, an increase of 10.8% from $317.2 million in the same period in 2023. For the nine months ended September 30, 2024, net interest income totaled $1.0 billion, reflecting a 6.0% increase compared to $944.9 million in the prior year.
The net interest margin for the three and nine months ended September 30, 2024 was 3.22% and 3.14%, respectively.
Loan Composition
The composition of Pinnacle Financial's loan portfolio as of September 30, 2024, is summarized below:
| Loan Type | Amount ($ thousands) | Percentage of Total Loans |
|---|---|---|
| Commercial real estate - Owner occupied | 4,264,743 | 12.4% |
| Commercial real estate - Non-owner occupied | 8,132,388 | 23.7% |
| Consumer real estate - Mortgage | 4,907,766 | 14.3% |
| Construction and land development | 3,486,504 | 10.2% |
| Commercial and industrial | 12,986,865 | 37.9% |
| Consumer and other | 530,044 | 1.5% |
| Total Loans | 34,308,310 | 100.0% |
Deposit Composition
Total deposits at Pinnacle Financial as of September 30, 2024, reached $41.0 billion, marking a 6.3% increase from $38.5 billion at December 31, 2023.
Noninterest Income
Pinnacle Financial's noninterest income for the three months ended September 30, 2024 amounted to $115.2 million, a 26.9% increase compared to $90.8 million in the same period in 2023. For the nine months ended September 30, 2024, noninterest income totaled $259.6 million, down 26.7% from $354.2 million in the prior year.
Credit Losses and Provisions
The provision for credit losses for the three and nine months ended September 30, 2024 was $26.3 million and $90.9 million, respectively. The allowance for credit losses as of September 30, 2024 was $391.5 million, compared to $353.1 million at December 31, 2023.
Shareholder Returns
Pinnacle Financial's diluted net income per common share for the three months ended September 30, 2024 was $1.86, compared to $1.69 for the same period in 2023. For the nine months ended September 30, 2024, diluted net income per share was $4.08, down from $5.99 in the prior year.
Efficiency Ratio
The efficiency ratio for the three and nine months ended September 30, 2024 was 55.6% and 61.3%, respectively, compared to 52.3% and 49.0% for the same periods in 2023.
Capital and Liquidity
Pinnacle Financial's capital ratios exceeded regulatory minimum capital requirements as of September 30, 2024. The company had approximately $192.0 million in cash available to support its banking operations.
How Pinnacle Financial Partners, Inc. (PNFP) Makes Money
Net Interest Income
Pinnacle Financial Partners generates significant revenue through net interest income, which for the three months ended September 30, 2024, was $351.5 million, compared to $317.2 million for the same period in 2023, representing a 10.8% increase. For the nine-month period, net interest income was $1.0 billion, up from $944.9 million, a 6.0% increase.
Loan Portfolio Composition
As of September 30, 2024, Pinnacle Financial's total loans outstanding were $34.3 billion, up from $32.7 billion at December 31, 2023. The composition of the loan portfolio is detailed in the table below:
| Loan Type | Amount ($ thousands) | Percentage of Total Loans |
|---|---|---|
| Commercial Real Estate - Owner Occupied | 4,264,743 | 12.4% |
| Commercial Real Estate - Non-Owner Occupied | 8,132,388 | 23.7% |
| Consumer Real Estate - Mortgage | 4,907,766 | 14.3% |
| Construction and Land Development | 3,486,504 | 10.2% |
| Commercial and Industrial | 12,986,865 | 37.9% |
| Consumer and Other | 530,044 | 1.5% |
| Total Loans | 34,308,310 | 100.0% |
Noninterest Income
Noninterest income for the three months ended September 30, 2024, was $115.2 million, a 26.9% increase from $90.8 million in the same period in 2023. For the nine-month period, noninterest income totaled $259.6 million, down 26.7% from $354.2 million in 2023.
Wealth Management and Service Charges
Revenue from wealth management services and service charges on deposit accounts also contributed to noninterest income. For the three months ended September 30, 2024:
- Wealth management revenues were $83.3 million, up from $69.3 million year-over-year.
- Service charges on deposit accounts increased by $3.6 million, or 28.0%, during the same period.
Income from Equity Method Investment
Pinnacle Financial's investment in BHG contributed $16.4 million in income for the three months ended September 30, 2024, down 34.4% from $24.9 million in 2023. For the nine-month period, income from this investment was $51.1 million, a decrease of 28.0% compared to $71.0 million in 2023.
Gains on Mortgage Loans Sold
Pinnacle Financial recognized gains on mortgage loans sold of $2.6 million for the three months ended September 30, 2024, up from $2.0 million in 2023. For the nine-month period, gains totaled $8.8 million, compared to $5.6 million in the prior year.
Investment Securities and Losses
During the nine months ended September 30, 2024, Pinnacle Financial sold $822.7 million of investment securities resulting in net losses of $72.1 million. This compares to sales of $303.1 million with net losses of $19.7 million in the same period in 2023.
Cost Structure
Total noninterest expense for the three months ended September 30, 2024, was $259.3 million, an increase of 21.6% from $213.2 million in 2023. For the nine months, noninterest expense was $773.1 million, up 21.4% from $636.6 million.
Net Income
Net income for the three months ended September 30, 2024, was $146.7 million, compared to $132.6 million in the same period in 2023, representing a 10.6% increase. For the nine months, net income was $323.8 million, down 30.7% from $467.2 million in 2023.
Effective Tax Rate
The effective tax rate for Pinnacle Financial for the three months ended September 30, 2024, was 19.0%, down from 21.1% in the same period in 2023.
Pinnacle Financial Partners, Inc. (PNFP) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Pinnacle Financial Partners, Inc. (PNFP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Pinnacle Financial Partners, Inc. (PNFP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Pinnacle Financial Partners, Inc. (PNFP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.