Pinnacle Financial Partners (PNFP) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 delivered strong adjusted revenue, EPS, and tangible book value per share growth, with double-digit five-year CAGRs and robust asset quality, positioning for continued growth if macroeconomic conditions improve.

• Record hiring and expansion into new markets drove over 100% of loan growth, with $2.6B from new markets and $349M from legacy recruiting, fueling optimism for 2025.

• BHG continued to deliver high-quality originations, strong loan sales, and resilient credit performance, contributing meaningfully to earnings.

• 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.

• Board increased quarterly common dividend to $0.24 per share.

Financial highlights

• End-of-period loans increased by 13.7% annualized from the prior quarter, with 2024 loan growth at $2.8 billion or 8.6%, reaching $35.5B at year-end.

• 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 held steady at 3.22% in Q4 2024; net interest income rose 14.7% year-over-year to $363.8 million.

• Adjusted fee income/noninterest income rose 15% year-over-year, with strong contributions from investment services and mortgage servicing.

• Efficiency ratio improved to 55.10% in Q4 2024 from 63.37% in Q4 2023.

Outlook and guidance

• 2025 guidance: loan growth of 8–11%, deposit growth of 7–10%, net interest income growth of 11–13%, and fee income growth of 8–10% (excluding certain one-time items).

• Net charge-offs for 2025 expected between 16-20 basis points; provision for loan losses at 0.24–0.27% of average loans.

• Expense guidance for 2025 set at $1.13-$1.15 billion, with incentive costs tied to performance.

• Management expects continued robust growth in 2025, driven by talent acquisition and market expansion.

• Optimism for positive impact from a steeper yield curve and continued client acquisition in 2025.