Pinnacle Financial Partners, Inc. · NYSE:PNFP
Pinnacle Financial Partners — Q1 2025 Earnings Presentation
51 slides from Pinnacle Financial Partners's earnings presentation, Apr 15, 2025
Slide 1: Investor Call First Quarter 2025
Investor Call FIRST QUARTER 2025 APRIL 15, 2025 Time: 8:30 AM CT Webcast: www.pnfp.com (investor relations) M. TERRY TURNER, PRESIDENT AND CEO HAROLD R. CARPENTER, EVP AND CFO
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, total revenues, net income to common shareholders, earnings per diluted common share, revenue per diluted common share, PPNR, efficiency ratio, noninterest
Slide 4: Shareholder Value Dashboard: GAAP measures
Shareholder Value Dashboard 1Q25 summary results of key GAAP measures Total Revenues FD EPS Net Income Available to Common Shareholders Total Loans Total Deposits Book Value per Common Share (millions) (in millions) Classified Asset Ratio NPA/ Loans & ORE NCOs PNFP’s Median Quarterly Performance of
Slide 5: Shareholder Value Dashboard: non-GAAP measures
Shareholder Value Dashboard 1Q25 summary results of key non-GAAP measures Adjusted Pre-Tax Pre-Provision Total Revenues* 14.2% Growth FD EPS* 24.2% Growth Net Income* CAGR 10.1% CAGR 4.0% CAGR 5.2% Total Loans Total Core Deposits Tangible Book Value per Share** 10.6% Growth (millions) (millions) CAG
Slide 6: Ability to Attract Talent Underlies Persistent Growth
PNFP’s Ability to Attract Talent Underlies Persistent Growth Net Loan Growth – YTD 1Q25 – Strategic Decisions: • Strategic Expansion - $756 million • Jacksonville, Atlanta, DC, Alabama, Kentucky, Franchise Finance, Equipment Finance • Legacy Recruiting Impact - $210 million • New RMs hired in past 2
Slide 7: Model has Outgrown Peers in Good Times and Bad
PNFP’s Model has Outgrown Peers in Good Times and Bad Total Loan CAGR (2012-2022) Total Loan Quarterly YoY Growth (1Q23-4Q24) 30% >2x 25% 15.0% 20% 15% 15.3% 7.0% 10% 8.8% 5.1% 5% 2.1% 2.1% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Source: S&P CapIQ as of April 9, 2025. Note: Peers include Associated, Bank OZK, Ba
Slide 8: Talent Attraction, Client Attraction Lead to Sustainable Quality Growth
Talent Attraction, Client Attraction Lead to Sustainable Quality Growth No. 9 Fortune Best Company to Work For in the U.S. No. 5 American Banker Best Bank to Work For 15 local and national workplace awards in 2024 American Business Journals; Knox News; Greenville, Columbia and Charleston Business ma
Slide 9: Market Share Gains Continued to Drive Loan Growth
Market Share Gains Continued to Drive Loan Growth Linked-quarter annualized growth in average loans was 12.1% in Q1 Average Loan Growth and Yields Fixed Rate Loan Maturities / Cash flow $37,500 6.24% 7.00% $1,200 5.20% $36,042 6.50% $34,981 $32,500 5.14% $34,082 5.10% $33,517 6.00% 4.99% $33,042 $1,
Slide 10: Deposit Growth Remained Strong to Start 2025
Deposit Growth Remained Strong to Start 2025 Linked-quarter annualized growth in average deposits was 12.8% in Q1 Average Deposit Growth Cumulative Betas Dec. 31, 2021 through Sept. 18, 2024 through $45,000 3.25% (EOP rate comparisons) Sept. 18, 2024 Mar. 31, 2025 2.58% 3.00% Average Deposits (milli
Slide 11: Stable NIM and Solid Volume Growth to Start 2025
Stable NIM and Solid Volume Growth to Start 2025 Net interest income increased 14.6% year-over-year in 1Q following 14.7% year-over-year growth in 4Q Net Interest Income & NIM Quarterly Avg. Securities $375 3.75% $9,000 4.30% 4.75% $8,500 Net Interest Income ($ in mil.) 4.50% Average Balances ($ in
Slide 12: Balance Sheet – Asset Quality
Balance Sheet – Asset Quality NCOs NPA/ Loans & ORE Highlights • Most credit metrics continued to perform well 0.48% in comparison to long-term historical averages 0.20% 0.20% 0.36% • Past dues, Classified Assets, Potential Problem 0.16% 0.33% loans which are historically strong indicators of 0.10%
Slide 13: BHG Financial Overview
BHG Financial Overview Q1 earnings of $44.1M is highest since Q3’23 and supported by significant growth in originations Origination Volume ($bn) • BHG provides loans in as little as 3 days from application to $6.0 funding. • A truly diversified funding strategy creates ample liquidity to $4.0 fund l
Slide 14: 1Q25 Results Keep Us Optimistic About FY2025
1Q25 Results Keep Us Optimistic About FY2025 2025 estimates unchanged from prior quarter Current 2025 Outlook (as of April 15, 2025) 2024 Results Y/Y EOP Loan Growth Our current estimate is that EOP loan growth for 2025 will be 8-11% over 2024 end of period balances. Y/Y EOP growth of 8.6% Y/Y EOP D
Slide 15: Q&A First Quarter 2025
Q&A FIRST QUARTER 2025
Slide 16: Supplemental Information
Supplemental Information Slide # • Balance Sheet 17 • Income Statement 37 • BHG 42 • Non-GAAP Reconciliation 48 • Peer Group 50 16
Slide 17: Balance Sheet – Loan Portfolio Segments
Balance Sheet – Loan Portfolio Segments ($ in millions) Amts. % Amts. % Amts. % Amts. % 1Q25 1Q25 4Q24 4Q24 1Q24 1Q24 1Q23 1Q23 C&I $14,131.3 39.1% $13,815.8 38.9% $11,893.2 35.9% $10,723.3 35.4% CRE – Owner Occ. 4,594.4 12.7% 4,388.5 12.4% 4,045.0 12.2% 3,686.8 12.2% Total C&I & O/O CRE $18,725.7 5
Slide 18: Loan Portfolio – Market Segmentation
Balance Sheet – Loan Portfolio – Market Segmentation ($ in millions) TOTAL PINNACLE C&I & O/O CRE CRE & CONSTRUCTION OTHER LOANS Amts. Amts. Amts. Amts. Amts. Amts. Amts. Amts. 1Q25 1Q24 1Q25 1Q24 1Q25 1Q24 1Q25 1Q24 Nashville $8,642.5 $8,609.5 $4,061.8 $3,779.1 $2,675.1 $2,993.1 $1,905.6 $1,837.3 K
Slide 19: Loan Portfolio – CRE Segmentation
Balance Sheet – Loan Portfolio – CRE Segmentation ($ in millions) Total NOO and Multifamily Total Construction Total NOO and Construction Amts. Amts. Amts. Amts. Amts. Amts. Amts. Amts. Amts. 1Q25 4Q24 1Q24 1Q25 4Q24 1Q24 1Q25 4Q24 1Q24 Multifamily $2,360.5 $2,187.1 $1,890.1 $1,574.7 $1,712.1 1,573.
Slide 20: Loan Portfolio Lines of Credit
Balance Sheet – Loan Portfolio Lines of Credit ($s in millions) Linked Qtr. 9/30/2023 12/31/2023 03/31/2024 06/30/2024 09/30/2024 12/31/2024 3/31/2025 Change CRE – Investment & Construction Net Active Balance $6,293.84 $6,517.26 $6,835.87 $6,539.76 $6,465.36 $6,577.64 $6,471.50 ($106.14) Net Availab
Slide 21: CRE Appetite by Segment
Balance Sheet – Loan Portfolio Highlights 1Q25 NOOCRE & Construction Balances / Total Loans • Over 90% of NOOCRE Portfolio is in 12.0% 10.9% Pinnacle’s attractive Southeastern demographic markets 10.0% • Reduced construction and land 8.0% development loans as a percentage of 5.4% 6.0% total risk-bas
Slide 22: Balance Sheet – Asset Quality
Balance Sheet – Asset Quality • Continued strong asset quality with minimal past due PNFP CRE & Construction accruing loans and 97.4% of portfolio graded pass; Accruing PD, Classified, and Non-Accruals incremental increase in nonaccrual due to one Class B multifamily loan • Reduced appetite for NOOC
Slide 23: Multifamily – Loan Portfolio
Balance Sheet Highlights Multifamily – Loan Portfolio (DRAFT) Multifamily Highlights • 95.4% is located within the PNFP footprint 1Q25 Multifamily Balances by Property Location • 49.6% are MF Construction loans (by commitment): 14.0% 12.2% o Average number of units 280 ($20MM+ Construction) 11.3% 12
Slide 24: Warehouse – Loan Portfolio
Balance Sheet Highlights Multifamily – Loan Portfolio (DRAFT) Warehouse Highlights • Industrial production primarily focuses on construction opportunities with top-tier 1Q25 Warehouse Balances by Property Location development platforms 10.0% • Conservative loan basis exhibiting an average LTV of 51.
Slide 25: Professional Office – Loan Portfolio
Balance Sheet Highlights Multifamily – Loan Portfolio (DRAFT) Professional Office Highlights • 94.0% of Professional Office CRE properties are in PNFP market. 1Q25 Professional Office Balances by Property Location • The concentration in Nashville is primarily due to the participation in the Nashvill
Slide 26: Professional Office Highlights
Balance Sheet Highlights Multifamily – Loan Portfolio (DRAFT) Professional Office Highlights 1Q25 Multi-Tenant Office LTVs 90.0% 81.8% 1Q25 Professional Office 80.0% Portfolio by Type 70.0% 60.0% 6% 50.0% Avg Bal: $6.0 MM 10% 40.0% Avg Bal: 30.0% Avg Bal: $3.0 MM Avg Bal: $3.8 MM 20.0% $2.2 MM 7.4%
Slide 27: Allowance for Credit Losses
Allowance for Credit Losses Total Allowance for Credit Losses for loans = $417.5mm or, 1.16% of loans, at March 31, 2025 $ in thousands Allowance for Off-Balance % of Loans Total Credit Losses Sheet At March 31, 2024 $371,337 1.12% (1) $17,469 $388,806 Net Charge Offs ($22,895) 0.27% (2) ($22,895) 2
Slide 28: Allowance for Credit Losses by Loan Type
Allowance for Credit Losses ($ in thousands) March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024 % of % of % of % of % of Allowance for Credit Losses Amount Loans Amount Loans Amount Loans Amount Loans Amount Loans Commercial and Industrial $183,205 1.30% $174,799 1.27%
Slide 29: Balance Sheet – Asset Quality
Balance Sheet – Asset Quality AS A % OF AS A % OF AS A % OF ($ in thousands) March 31, 2025 December 31, 2024 March 31, 2024 TOTAL LOANS TOTAL LOANS TOTAL LOANS NPLs and > 90 days Const. and land development $2,252 0.01% $2,387 0.01% $701 0.00% Consumer RE 34,436 0.10% 38,245 0.11% 23,630 0.07% CRE
Slide 30: Balance Sheet – Loan Portfolio Net Charge Offs
Balance Sheet – Loan Portfolio 1.60% Annualized Net Loan Charge Offs by Loan Type 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.23% 0.20% 0.16% 0.16% 0.10% 0.00% -0.20% CRE Construction C&I Consumer RE Consumer and Total other Net Charge Off Rates 2022 2023 2024 2025 30
Slide 31: Loan Portfolio – 100/300 Test
Balance Sheet – Loan Portfolio – 100/300 Test ($ in thousands) Description 1Q25 4Q24 3Q24 2Q24 1Q24 4Q23 Loans secured by real estate: Construction, land development, and other loans: 1-4 family residential construction loans $664,689 $670,350 $667,600 $678,836 $672,284 $693,128 Other construction l
Slide 32: Balance Sheet – Deposit Portfolio
Balance Sheet – Deposit Portfolio Net Deposit Growth – YTD 1Q25 – Strategic Decisions: • Strategic Expansion - $1.1 billion • Jacksonville, Atlanta, DC, Alabama, Kentucky, Franchise Finance, Equipment Finance • Legacy Recruiting Impact – Reduction of $148 million • New RMs hired in past 2.5 years ot
Slide 33: Deposit Portfolio – Market Segmentation
Balance Sheet – Deposit Portfolio – Market Segmentation ($ in millions) TOTAL DEPOSITS CORE DEPOSITS NONCORE DEPOSITS TOTAL PINNACLE TRANSACTION AND MMDA CDs PUBLIC FUNDS and OTHER DEPOSITS 1Q25 1Q24 1Q25 1Q24 1Q25 1Q24 1Q25 1Q24 Nashville $15,926 $14,144 14,681 12,941 716 729 529 474 Knoxville 3,16
Slide 34: Deposit Portfolio
Balance Sheet - Deposit Portfolio Ratio of EOP Uninsured and Uncollateralized Deposits Estimated Liquidity Available for Uninsured Deposits Balances at ($s in millions) Mar. 31, 2025 to Total Deposits 50.00% 42.9% Total Deposits $44,479 38.9% 40.00% 34.6% Less: Insured and/or Collateralized Deposits
Slide 35: Balance Sheet – Bond Portfolio
Balance Sheet – Bond Portfolio 3/31/25 % of 12/31/24 % of 9/30/24 % of 6/30/24 % of Duration Net of Unhedged Security Type Quarter Avg. Yield - TE Balance Portfolio Balance Portfolio Balance Portfolio Balance Portfolio Hedging Duration Treasuries 1,526,458 16.9% 1,526,372 17.5% 1,480,557 17.6% 1,548
Slide 36: Interest Rate Sensitivity
Interest Rate Sensitivity Rate Ramp Scenarios Rate Shock Scenarios 5.0% 5.0% 3.0% 3.0% 3.0% 2.5% 2.4% Net Interest Income % Net Interest Income % 1.5% 1.6% 1.4% 1.4% 1.2% 1.0% 1.0% 0.6% 0.7% 0.6% 1.0% 0.6% 0.7% 0.3% 0.4% 0.3%0.3% 0.1%0.1% -0.3% -0.1% -0.3% -0.1% -1.0% -0.6% -1.0% -0.4% -0.7% -0.
Slide 37: Fee Income
Fee Income Linked- • Core fee categories of wealth management, service charges, and Quarter Year-over- interchange, etc. reflect strong revenue growth in 1Q25 over Annualized Year 4Q24 and 1Q24. (dollars in thousands) 1Q25 4Q24 1Q24 Growth % Growth % Service charges $17,028 $15,175 $13,439 48.8% 26.
Slide 38: Noninterest Expense
Noninterest Expense • Salaries and commissions reflect the impact of increased headcount Linked-Quarter Yr-over-Yr and merit raises in the first quarter of 2025. Annualized Growth % (dollars in thousands) 1Q25 4Q24 1Q24 Growth % • Cash incentives in 1Q25 reflect the resetting of incentive targets fo
Slide 39: Income Statement – Revenue Per Share
Income Statement – Revenue Per Share LTM Revenue Per Share Growth* vs. Peers $25.00 19.0% 20.0% 18.2% $24.12 17.5% 18.0% $24.00 16.2% 16.2% $23.39 13.8% 13.1% 15.2% 16.0% 16.0% $23.00 14.3% $22.49 12.8% $21.89 $22.00 $21.60 14.0% $21.39 $21.48 $21.45 $21.09 14.9% 11.7% 10.1% Y/Y Revenue per Share Gr
Slide 40: Income Statement – PPNR
Income Statement – PPNR ($s in thousands) 2021 2022 2023 2024 2025 YTD PPNR Trends Net interest income $932,401 $1,129,293 $1,262,118 $1,365,590 $364,428 Adjusted PPNR Noninterest income 395,734 416,124 433,253 371,178 98,426 $900 Noninterest expense (660,104) (779,999) (887,769) (1,034,970) (275,48
Slide 41: Tangible Book Value Growth
Tangible Book Value Growth Tangible Book Value per Share** Focused on preserving and growing $57.47 TBV per common share – YTD growth $51.98 $46.75 2025* 8.9% $41.65 $37.88 2024 9.5% 2023 14.8% 2022 5.1% 2021 14.2% **: excluding goodwill, core deposit and other intangible assets *: YTD Annualized Ta
Slide 42: BHG Continues to Leverage its Distribution Network
Credit Quality BHG Continues Continues to Leverage & Growto Impress its Distribution Network Sophisticated Strong credit origination and scoring placement models volume produce in 1Q25 while impressive maintaining tight credit results • BHG’s origination volumes increased again in Q1 as lead Quarter
Slide 43: BHG Bank Auction Spreads
BHG Credit BHG Bank Quality Auction Continues Spreads at 9.5% to Impress Sophisticated credit Balance sheet placements scoring providing models recurrent produce net interest impressive income at results a spread of 10.7% during Q1 Bank Auction Platform Rates • Bank buy rates continued to decrease,
Slide 44: BHG Reserves Compare Favorably to Trailing Credit Loss
BHG Reserves Compare Favorably to Trailing Credit Loss The trailing 12-month balance sheet loss figure declined to 6.8% in Q1 • Trailing 12-month losses for off-balance sheet loans total 7.1% including the Reserves and Losses for Off B/S Loans (TTM) impact of loans where borrower elects to prepay. T
Slide 45: BHG has Increased Focus on Higher FICO Originations
BHG has Increased Focus on Higher FICO Originations Over 80% of Q1 2025 Originations were originated to FICO scores of 700+ Originations • BHG continues to refine and FICO Mix ($ mm) Cumulative Net Loss Curves tighten its credit underwriting: 2015 $456 • Losses in certain risk classes, particularly
Slide 46: BHG Has Diverse, Growing Funding Channels
BHGHas BHG Credit Quality Diverse, Continues Growing Fundingto Impress Channels Sophisticated Proactive credit management scoring of placement models channels produce continues to provide impressive results flexibility to BHG’s platform Loan Sale Auction Over 1,670 banks in network. 719 unique banks
Slide 47: BHG Financials
BHG Financials At Mar 31, At Dec 31, At Sep 30, ($'s in thousands) ($'s in thousands) 1Q 2025 4Q 2024 3Q 2024 2025 2024 2024 Cash and Cash Equivalents 762,815 578,067 608,749 Interest Income $ 134,494 $ 129,220 $ 126,503 Loans Held for Investment 2,655,603 2,589,084 2,612,574 Allowance for Loan Loss
Slide 48: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 48
Slide 49: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 49
Slide 50: 2025 Peer Group
2025 Peer Group Institution Name Ticker City, State Pinnacle Financial Partners, Inc. PNFP Nashville, TN Associated Banc-corp ASB Green Bay, WI Bank OZK OZK Little Rock, AR Bank United Inc. BKU Houston, TX BOK Financial Corp. BOKF Tulsa, OK Cadence Bank CADE Tupelo, MS Comerica Inc. CMA Dallas, TX C
Slide 51: Investor Call First Quarter 2025
Investor Call FIRST QUARTER 2025 M. TERRY TURNER, PRESIDENT AND CEO HAROLD R. CARPENTER, EVP AND CFO
Pinnacle Financial Partners — Q1 2025 Earnings Presentation on 6ix