Pinnacle Financial Partners, Inc. · NYSE:PNFP
Pinnacle Financial Partners — Q1 2020 Earnings Presentation
19 slides from Pinnacle Financial Partners's earnings presentation, May 18, 2020
Slide 1: First Quarter 2020 Update
First Quarter 2020 Update – May 18, 2020 M. TERRY TURNER, PRESIDENT AND CEO HAROLD R. CARPENTER, EVP AND CFO TIM HUESTIS, EVP AND CHIEF CREDIT OFFICER
Slide 2: Safe Harbor Statements: Forward Looking Statements
Safe Harbor Statements Forward Looking Statements All statements, other than statements of historical fact, included in this presentation, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section
Slide 3: Safe Harbor Statements: Non-GAAP Financial Matters
Safe Harbor Statements Non-GAAP Financial Matters This presentation contains certain non-GAAP financial measures, including, without limitation, earnings per diluted share, and pre-tax pre-provision income, excluding in certain instances the impact of expenses related to other real estate owned, gai
Slide 4: 1Q20 Financial Information
1Q20 Financial Information Our key success measures such as asset quality, loan and core deposit growth, deposit betas and fee growth all pointed to an outstanding quarter prior to the impact of COVID-19. 4
Slide 5: 1Q20 Summary Results of Key GAAP Measures
1Q20 Summary Results of Key GAAP Measures Total Revenues FD EPS Net Income Total Loans Total Deposits Book Value per Share (millions) (millions) NPA/ Loans & OREO Classified Asset Ratio NCOs 5
Slide 6: 1Q20 Summary Results of Key Non-GAAP Measures
1Q20 Summary Results of Key Non-GAAP Measures Total Revenues FD EPS* Adjusted Pre-Tax Pre-Provision Net Income* $263,466 $1.24 $240,269 (‘000) $218,624 $1.13 128,532 114,603 126,464 $119,149 $0.83 $0.71 $99,758 58,271 47,748 $0.39 Total Loans Total Core Deposits $20,397 (millions) Tangible Book Valu
Slide 7: Pinnacle and COVID-19
Pinnacle and COVID-19 PinnacleAssociate responded Protection quickly and decisively to protect associates and clients • Many of the markets in which we operate are in Cumulative Covid- COVID-19 Rate per the first phase of reopening. Generally, across PNFP Markets 19 Cases Population 100,000 our foot
Slide 8: Pinnacle and COVID-19
Pinnacle and COVID-19 PinnacleAssociate responded Protection quickly and decisively to protect associates and clients • PNFP branch offices were converted to drive-thru only service. Planning currently underway for reopening lobby service. • PPE is being deployed throughout the franchise in preparat
Slide 9: Pinnacle and COVID-19: PPP roll-out
Pinnacle and COVID-19 PinnacleAssociate enhanced Protection its reputation for valuing long-term relationships in PPP roll-out • Conducted PPP webinars that have been attended and/or subsequently viewed over 16,000 times • Frequent communications to client base throughout process • Significant posit
Slide 10: Shift in Asset Mix will Influence 2Q20 Net Interest Margin
Shift in Asset Mix will Influence 2Q20 Net Interest Margin PPP Program and Liquidity “Insurance” to Drive Significant but Temporary Change in 2Q Earning Asset Mix (1Q20 Actual) FFS & Other 3% • Liquidity build and PPP will add meaningful footings Securities 16% to balance sheet Loans • No real impac
Slide 11: Liquidity Build will be Impactful During the Second Quarter
Liquidity Build will be Impactful During the Second Quarter UncertainConsumer market conditions and in early Small March prompted Business liquidity build Programsstrategy Quarterly Avg. FFS and Cash $2,000 3.20% • 2Q20 liquidity build status $1,750 2.80% • No real impact to 2Q20 Net Interest Income
Slide 12: Bankers Healthcare Group Business Model Continues to Provide High Quality Growth
Bankers Healthcare Group Business Model Continues to Provide High Quality Growth to Licensed Professionals BHG Total Loans and Borrowings Total BHG Loan Originations At Year End $1,800,000 $1,200,000 $1,442,000 $1,000,000 $1,500,000 $800,000 $1,200,000 $662,764 $600,000 $872,000 $900,000 Thousands $
Slide 13: PNFP Will Focus on Defense During This Pandemic: Outlook
PNFP Will Focus on Defense During This Pandemic TheConsumer length and depth of andthe pandemic Small are unknown, Business but we remain Programs confident in our model 2Q20 Outlook (in relation to Notes Full Year 2020 1Q20) Low to mid-single Outlook excludes impact of PPP program which will increa
Slide 14: Moving Forward in this Pandemic
Moving Forward in this Pandemic All the impacts of the COVID-19 pandemic are unknown as yet. Severity is likely a function of duration. But there can be little doubt that its impacts will be far reaching on our nation in general, and banks in particular. At this juncture, it is critical that we cont
Slide 15: First Quarter 2020 Scoreboard
PNFP Will Focus on Defense During This Pandemic WeConsumer have and seek to andcontinue Small to build liquidity,Business reserves Programs and capital during this crisis First Quarter 2020 Scoreboard • Increased liquidity • Q1 was strongest core deposit growth in recent history; improving liquidity
Slide 16: 2020 Game Plan: De-risk the Loan Portfolio
PNFP Will Focus on Defense During This Pandemic WeConsumer have and seek to andcontinue Small to build liquidity,Business reserves Programs and capital during this crisis 2020 Game Plan • Defend the franchise value of the firm • Assess and de-risk the loan portfolio • Loans with payment deferrals –
Slide 17: 2020 Game Plan: Principally Disrupted Loan Segments
PNFP Will Focus on Defense During This Pandemic WeConsumer have and seek to andcontinue Small to build liquidity,Business reserves Programs and capital during this crisis 2020 Game Plan • Defend the franchise value of the firm • Assess and de-risk the loan portfolio • Principally disrupted loan segm
Slide 18: 2020 Game Plan: Build Core Liquidity
PNFP Will Focus on Defense During This Pandemic WeConsumer have and seek to andcontinue Small to build liquidity,Business reserves Programs and capital during this crisis 2020 Game Plan • Defend the franchise value of the firm • Build Core Liquidity while Lowering Cost of Funds • Focus on net deposi
Slide 19: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 19
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