Pinnacle Financial Partners (PNFP) Q1 2025 earnings summary

Executive summary

• Achieved double-digit revenue growth, with adjusted revenues up 14.2% year-over-year in Q1 2025 and a 10.1% CAGR over four years; net interest income rose 14.6% year-over-year, and adjusted EPS grew 24.2%.

• Loans grew 9.0% year-over-year to $36.1 billion, with annualized linked-quarter growth of 12.1%; deposits increased 3.8% sequentially and 12.8% annualized.

• Tangible book value per share increased 10.6% year-over-year to $57.47.

• Growth strategy centers on recruiting experienced revenue producers, with 33 added in Q1 2025, driving reliable and high-quality growth.

• BHG segment delivered its highest earnings since 3Q23, with $44.1M in Q1 2025 net income and strong origination and placement volumes.

Financial highlights

• Net interest margin improved to 3.21% and remained stable for three quarters; net interest income was $364.4 million in Q1 2025.

• Adjusted noninterest income rose 12.9% year-over-year, while reported noninterest income declined due to a $12.5M securities loss.

• Net charge-offs were $14.0 million (0.16% annualized), down from $16.2 million in Q1 2024; allowance for credit losses was 1.16% of loans.

• Efficiency ratio was 59.5% (adjusted 57.9%) in Q1 2025; noninterest expense increased 13.7% year-over-year.

• Quarterly dividend per share increased to $0.24.

Outlook and guidance

• 2025 loan growth guidance is 8–11% and deposit growth 7–10%; net interest income expected to grow 11–13% year-over-year.

• Fee income growth forecasted at 8–10%, with BHG expected to deliver 20% growth.

• Net charge-offs expected at 0.16–0.20% of average loans; provision at 0.24–0.27%.

• Salary and benefit expenses projected to rise in 2025 as hiring continues.

• Ongoing investments in technology and infrastructure, including headquarters relocation, are expected to increase capital expenditures.