Pinnacle Financial Partners (PNFP) Q4 2024 earnings summary

Executive summary

• Achieved strong adjusted revenue, EPS, and tangible book value per share growth in Q4 2024, with double-digit five-year CAGRs and robust asset quality and balance sheet expansion, positioning for continued growth if macroeconomic conditions improve.

• Strategic hiring and expansion into new markets drove over 100% of loan growth, with record hiring of experienced revenue producers in 2024 and a strong recruiting pipeline for 2025.

• BHG continued to deliver high-quality originations, strong loan sales, and resilient credit performance, contributing about 6% of consolidated earnings in 2024.

• Fourth quarter 2024 diluted EPS was $1.91, up 60.5% year-over-year; full-year diluted EPS was $5.96, down 16.5% from 2023. Adjusted Q4 diluted EPS was $1.90, up 13.1% year-over-year.

Financial highlights

• End-of-period loans increased by 13.7% linked quarter annualized; total loans grew 8.6% year-over-year to $35.5B at 4Q24.

• Deposits grew by $1.9 billion in Q4, with core deposits up 13% year-over-year and total deposits at $42.8B, up 11.2% year-over-year.

• Net interest margin (NIM) held at 3.22%; net interest income rose 14.7% year-over-year in Q4 2024, with 11%-13% growth guided for 2025.

• Adjusted pre-tax pre-provision net income (PPNR) reached $797.7M in 2024, up 2.5% year-over-year; Q4 PPNR was $213.4M, up 47.0% year-over-year.

• Tangible book value per share increased 9.5% year-over-year to $56.24 at year-end.

Outlook and guidance

• 2025 guidance includes double-digit revenue growth, 8%-11% loan growth, 7%-10% deposit growth, 11%-13% net interest income growth, and 8%-10% fee income growth.

• Net charge-offs expected at 0.16–0.20% of average loans, with provision for loan losses at 0.24–0.27% of average loans.

• Expense guidance for 2025 is $1.13-$1.15 billion, with incentive payouts tied to performance.

• Optimism for NIM expansion if the yield curve steepens; margin could improve 10-20 basis points in 2025.