Pinnacle Financial Partners (PNFP) Q1 2025 earnings summary

Executive summary

• Achieved double-digit revenue and EPS growth, with adjusted EPS up 24.2% and revenue up 14.2% year-over-year in Q1 2025; tangible book value per share increased 10.6% to $57.47.

• Loans grew 9.0% year-over-year and 1.8% sequentially to $36.1 billion, while deposits increased 3.8% sequentially and 16.5% annualized for noninterest-bearing accounts.

• Growth was driven by the recruitment of 33 experienced revenue producers in Q1 2025 and expansion in key Southeastern markets.

• BHG segment delivered its highest earnings since 3Q23, with $44.1 million in Q1 net income and $1.2 billion in loan originations.

• Asset quality remains robust, with allowance for credit losses at 1.16% of loans and nonperforming assets at 0.48%-0.49%.

Financial highlights

• Net interest income rose 14.6% year-over-year to $364.4 million, with net interest margin stable at 3.21%.

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

• Noninterest expense increased 13.7% to $275.5 million, reflecting higher headcount and infrastructure investments.

• Efficiency ratio was 59.5% (adjusted 57.9%-59.52%) in Q1 2025.

• Pre-tax, pre-provision net revenue (PPNR) was $187.4 million; adjusted PPNR up 10.3% to $199.9 million.

Outlook and guidance

• Loan growth guidance for 2025 is 8-11%, with deposit growth at 7-10% and net interest income growth at 11-13%.

• Fee income growth expected at 8-10%, with BHG revised up to 20% growth.

• Total expenses (excluding ORE) estimated at $1.13B-$1.15B for 2025; salary and benefit expenses projected to rise as hiring continues.

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

• Recruiting and business development pipelines remain robust, supporting future growth.