Pinnacle Financial Partners, Inc. · NYSE:PNFP
Pinnacle Financial Partners — Q3 2024 Earnings Presentation
68 slides from Pinnacle Financial Partners's earnings presentation, Oct 16, 2024
Slide 1: Investor Call Third Quarter 2024
Investor Call THIRD QUARTER 2024 OCTOBER 16, 2024 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 3Q24 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 3Q24 Summary Results of Key Non-GAAP Measures Adjusted Pre-Tax Pre-Provision Total Revenues* FD EPS* Net Income* CAGR 12.8% CAGR 38.9% CAGR 10.6% Total Loans Total Core Deposits (millions) Tangible Book Value per Share** (millions) CAGR 14.8% CAGR 11.6% CAGR 11.3% NPA/ Lo
Slide 6: Revenue, EPS, Tangible Book Value… And the Beat Goes On
Revenue, EPS, Tangible Book Value… And the Beat Goes On Our advantaged markets, vulnerable competitors, ability to attract talent and relentless focus on a differentiated client experience lead to resilience even in challenging periods like 2024. 6
Slide 7: Pinnacle Serves Advantaged Southeastern Markets
Pinnacle Serves Advantaged Southeastern Markets 2022 Domestic Net Migration +5.5 Rate(1) Growth Markets (1.4) (3.6) (5.7) South Midwest West Northeast Source: U.S. Census Bureau. 7 Note: Regions as defined by U.S. Census Bureau. Net migration rate calculated as inflows less out flows divided by mid-
Slide 8: PNFP Has Consistently Won Clients in TN From Larger Competitors
PNFP Has Consistently Won Clients in TN From Larger Competitors … Deposit Market Share Evolution Over Last 10 Years – Key Tennessee Metros Nashville Chattanooga Knoxville Memphis 35.3% 37.3% 40.3% +5.0pp 41.0% 44.8% +7.5pp Other 49.6% 49.5% +8.5pp 55.9% +6.4pp 1.1% 0.9% 2.0% 13.6% 14.7% 10.9% Wells
Slide 9: With Significant Share Still In Play
… With Significant Share Still “In Play” 2024 Deposit Market Share for Selected Competitors Ceding Significant Share Carolinas & Virginia Expansion Markets 9.1% 12.1% 2.8% 1.4% 1.6% 5.2% 0.7% 0.4% 3.1% 0.4% 0.1% 3.2% 0.1% 51.0% 1.7% Regions 43.2% 42.3% 42.3% First Horizon 3.2% 1.0% 39.0% 19.1% 1.4%
Slide 10: PNFP Has #1 FDIC Deposit Market Share in Nashville MSA
PNFP Has #1 FDIC Deposit Market Share in Nashville MSA … Nashville MSA League Tables 2005: Crossed $1bn Assets 2015: Crossed $10bn Assets Today: $50bn Assets 10 Source: S&P Global Market Intelligence and FDIC as of June 30, 2024.
Slide 11: #1 Market Share Among Businesses in Nashville MSA
…With #1 Market Share Among Businesses in Nashville MSA Percent of Companies Surveyed Using Bank for Any Product and Lead Relationships Lead Relationships as a Lead Relationships as a Customers % of the Total Market % of Customers PNFP 33% 30% 91% #2 11% 3x #2 7% >4x #2 71% #3 11% 6% 49% #4 10% 6% 6
Slide 12: PNFP Has Executed Its Nashville Playbook Across Tennessee
PNFP Has Executed Its Nashville Playbook Across Tennessee … Deposit Share Chattanooga Knoxville Memphis +8.0pp +6.5pp 14.6% 13.1% 11.4% 10.6% 10.3% 10.5% 10.5% +4.9pp 9.8% 10.0%10.0% 9.4% 8.4% 8.0% 6.8% 6.6% 6.6% 6.7% 6.7% 7.0% 6.1% 5.3% 5.6% 4.9% 4.9% 3.6% 3.8% 2.9% 3.0% 1.7% 1.8% '15 '16 '17 '18 '
Slide 13: Transformed the Carolinas & Virginia Following the BNC Acquisition
… And Transformed the Carolinas & Virginia Following the BNC Acquisition Carolinas & Virginia Total Loans Carolinas & Virginia Total Deposits Loan / 118% 117% 92% 98% 100% CAGR Deposit CAGR $10.6bn +10% $10.5bn $10.6bn +14% $10.4bn $0.5bn $0.5bn $1.6bn 5% 5% +7% $1.6bn +4% $1.1bn $1.1bn 15% 15% 10%
Slide 14: Tennessee Playbook Across the Carolinas & Virginia
PNFP has Executed Our Tennessee Playbook Across the Carolinas & Virginia … Deposit Share Greensboro / High Point Charlotte Raleigh +2.6pp 12.1% 12.0% 11.3%11.2% 11.6% 11.0%11.0% 10.4% 9.5% 9.8% +1.5pp 2.8% 2.5% 2.3% +1.1pp 2.0% 1.6% 1.7% 1.8% 1.4% 1.6% 1.5% 1.3% 1.3% 1.4% 1.3% 1.3% 1.4% 1.1% 0.6% 0.
Slide 15: Track Record of Rapidly Scaling New Markets
… And Demonstrated a Track Record of Rapidly Scaling New Markets Larger Market Entries (>$50bn Deposits) Smaller Market Entries (<$50bn Deposits) $1,200 $400 $350 $1,000 $300 $800 $250 $600 $200 $150 $400 $100 $200 $50 – – Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 16: Strategy is to Attract and Retain the Best Bankers
PNFP’s Strategy is to Attract and Retain the Best Bankers … • 20+ year track record of identifying and laddering “market best” bankers Distinctive Service. 5 Effective Advice. • Engaged associates produce better Performance outcomes for clients and PNFP 4 Measurement • Sustained long-term balance sh
Slide 17: Employer of Choice
… For Whom We Are the Employer of Choice … Nationally Recognized as a Top Employer Best Places to Work Best Banks to Work For Hall of Fame #1 #1 Nashville (10 years #1) Knoxville (7 of last 8 yrs.) Triad #11 #38 #1 Inclusive Leadership Assets >$10 Billion Overall (2024) Index – Best Places to #6 #1
Slide 18: Enabling PNFP to Amass the Best Talent in the Footprint
… Enabling PNFP to Amass the Best Talent in the Footprint … Strong Bond with “Raving Fans” Leading RM Productivity Lead relationship rating of RM performance PPNR per Associate (2023A)(2) % of excellent citations (Q2’24)(1) Leading Neutral Trailing Source: Coalition Greenwich Voice of Client – 2024
Slide 19: Building a Reputation for Unmatched Customer Service
… Building a Reputation for Unmatched Customer Service … Consumers Businesses Net Promoter Score Best Brand Award #1 #1 #1 #1 Net Promoter Score Level of Trust Satisfaction with RMs Ease of Doing Business #1 #1 #1 #1 People Resolving Problems Knowledge of Cash Mgmt. Bank You Can Trust #1 #2 #1 #1 “H
Slide 20: And Long-Term Value Creation
… And Long-Term Value Creation Source: FactSet as of October 14, 2024. 20 (1) Excludes certain peers due to timing of initial public offerings.
Slide 21: And the Beat Goes On: Balance Sheet Growth Capacity
… And the Beat Goes On The balance sheet is expected to grow as RMs consolidate their clients Current Average Portfolio Sizes by RM Tenure ($mm) 2025-2026 Cumulative Growth Capacity ($bn) Illustrative Avg. EOP Avg. EOP Tenures # of RMs Deposits / RM Loans / RM $5.6 $5.9 Tenure < 12 Months 63 $4 $7 $
Slide 22: 3Q24 Financial Information
3Q24 Financial Information Balance sheet growth. Margin expansion. Revenue growth. EPS growth. Tangible book value accretion. Strong asset quality. More of the same. 22
Slide 23: Loan Volume Growth and Yield Improvement Bolster 3Q NII
Loan Volume Growth and Yield Improvement Bolster 3Q NII Linked-quarter annualized growth in average loans was 6.7% in Q3 Average Loan Growth and Yields Fixed Rate Loan Maturities / Cash flow $35,000 6.75% 7.00% $1,200 5.10% $34,082 6.50% $33,517 $33,042 5.04% $32,372 $30,000 $31,530 $1,000 5.00% $30
Slide 24: Deposit Growth Continued With Costs Contained
Deposit Growth Continued With Costs Contained Average deposit costs dipped 2bps to 3.08% in 3Q; late-quarter rate cut response evident in EOP rates Average Deposit Growth Cumulative Betas Dec. 31, 2021 June 30, 2024 June 30, 2024 3.08% $42,500 3.25% (EOP rate comparisons) through June 30, through Se
Slide 25: Continued NIM Expansion and Accelerated NII Growth
Ability to Grow Through the Challenging Operating Environment is Compelling 3Q marked by continued NIM expansion and accelerated NII growth Net Interest Income & NIM Quarterly Avg. Securities 4.58% $375 3.75% $8,500 4.75% $8,000 4.50% Average Balances ($ in mil.) Net Interest Income ($ in mil.) $350
Slide 26: Problem Loan Formation Remains Low
Problem Loan Formation Remains Low Problem loan metrics such as NPAs and classified assets remain below long-term levels Net Charge Offs NPA/ Loans & ORE Highlights 0.33% 0.61% • Most credit metrics continued to outperform 0.58% 0.27% 0.53% 0.55% long-term historical averages in 3Q24 0.46% 0.21% 0.2
Slide 27: Construction Concentration Now Below 70% Target
Construction Concentration Now Below 70% Target NOOCRE Target of 225% appears achievable in 2025 Highlights 3Q 24 NOOCRE & Construction Balances / Total Loans • Over 85% of NOOCRE Portfolio is in 12.0% 11.0% Pinnacle’s attractive Southeastern demographic markets 10.0% • Met strategic goal to reduce
Slide 28: Fee Income Continues Strong Growth in 3Q24
Fee Income Continues Strong Growth in 3Q24 PNFP continues emphasis on gathering more share of wallet from client base Linked- Quarter Year-over- • Service charge increases for 3Q24 primarily Annualized Year attributable to revenues from commercial deposit (dollars in thousands) 3Q24 2Q24 3Q23 Growth
Slide 29: 3Q24 Expense Results Reflect Impact of Current Outlook
3Q24 Expense Results Reflect Impact of Current Outlook Incentive expense fluctuations correlate with earnings outlook • Salaries and commissions reflect the impact of increased Linked-Quarter Yr-over-Yr Annualized headcount. (dollars in thousands) 3Q24 2Q24 3Q23 Growth % Growth % • Cash incentive ex
Slide 30: Bankers Healthcare Group
Bankers Healthcare Group BHG’s differentiated model has proven resilient with continued high-quality originations, loan sales and yield/spread premium. The gain on sale model continues to provide meaningful earnings to Pinnacle and is complemented by balance sheet spread income. Capital and reserve
Slide 31: BHG Continues to Leverage and Grow Distribution Network
BHG Credit Quality BHG Continues Continues to Leverage to its & Grow Impress Distribution Network Sophisticated BHG loans remain incredit scoring models produce impressive results high demand • BHG’s origination volumes increased in Q3, while the Quarterly Origination & Placements ($mm) company focu
Slide 32: BHG Bank Auction Spreads Widened to 9.2% in Q3
BHG Bank BHG Credit Quality Auction Continues Spreads to Impress Widened to 9.2% in Q3 Sophisticated credit scoring models produce impressive results Bank Auction Platform Rates Off Balance Sheet - Borrower Coupon and Bank Buy Rates • Bank buy rates continued to decrease, 18.0% 15.5% 15.8% 17.0% 16.
Slide 33: BHG Reserves Compare Favorably to Actual Losses
BHG Reserves Compare Favorably to Actual Losses Reserves Strengthened for Off B/S Loans while CECL Reserves lowered for On B/S Loans • Trailing 12-month losses for off-balance sheet loans total 5.7%. The Q3 Reserves vs. Actual Losses for Off B/S Loans (TTM) reserve for estimated loan substitutions a
Slide 34: All in, 3Q24 Results Keeps Us Optimistic About 2024
All in, 3Q24 Results Keeps Us Optimistic About 2024 PNFP adjusting outlook for several line items Previous 2024 Outlook Previous 2024 Outlook Current 2024 Outlook (as of October 15, 2024) (as of July 17, 2024) (as of April 23, 2024) Y/Y EOP Loan Our current estimate is that EOP loan growth for 2024
Slide 35: Lastly…
Lastly… • Pinnacle operates in the most attractive footprint in the U.S. - Regional in-migration offers a substantial tailwind - We operate in a number of the fastest growing large markets in the U.S. - Market share leaders in our footprint remain extraordinarily vulnerable • Pinnacle has amassed th
Slide 36: Q&A Third Quarter 2024
einnacle FINANCIAL PARTNERS Q&A THIRD QUARTER 2024
Slide 37: Supplemental Information
Supplemental Information Slide # • Balance Sheet 38 • Income Statement 58 • BHG 61 • Non-GAAP Reconciliation 65 • Peer Group 67 37
Slide 38: Balance Sheet – Loan Portfolio
Balance Sheet – Loan Portfolio Net Loan Growth – YTD 3Q24 – Strategic Decisions: • Strategic Expansion - $1.8 billion • Jacksonville, Atlanta, DC, Alabama, Kentucky, Franchise Finance, Equipment Finance • Recruiting Impact - $384 million • New RMs hired in past 3.0 years other than in our strategic
Slide 39: Balance Sheet – Loan Portfolio Segments
Balance Sheet – Loan Portfolio Segments ($ in millions) Amts. % Amts. % Amts. % Amts. % 3Q24 3Q24 2Q24 2Q24 3Q23 3Q23 3Q22 3Q22 C&I $12,986.9 37.9% $12,328.6 36.5% $11,307.6 35.4% $9,749.0 35.1% CRE – Owner Occ. 4,264.7 12.4% 4,217.4 12.5% 3,944.6 12.3% 3,426.3 12.4% Total C&I & O/O CRE $17,251.6 50
Slide 40: Loan Portfolio – Market Segmentation
Balance Sheet – Loan Portfolio – Market Segmentation ($ in millions) TOTAL PINNACLE C&I & O/O CRE CRE & CONSTRUCTION OTHER LOANS* Amts. Amts. Amts. Amts. Amts. Amts. Amts. Amts. 3Q24 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 3Q23 Nashville $8,581.8 $8,591.5 $3,979.4 $3,731.0 $2,744.7 $3,043.5 $1,857.7 $1,817.0
Slide 41: Loan Portfolio – CRE Segmentation
Balance Sheet – Loan Portfolio – CRE Segmentation ($ in millions) Total NOO and Multifamily Total Construction Total NOO and Construction Amts. Amts. Amts. Amts. Amts. Amts. Amts. Amts. Amts. 3Q24 2Q24 3Q23 3Q24 2Q24 3Q23 3Q24 2Q24 3Q23 Multifamily $2,213.9 $2,187.3 $1,490.6 $1,560.4 $1,592.1 $1,319
Slide 42: Loan Portfolio Lines of Credit
Balance Sheet – Loan Portfolio Lines of Credit ($s in millions) Linked Qtr. 3/31/2023 6/30/2023 9/30/2023 12/31/2023 03/31/2024 06/30/2024 09/30/2024 Change CRE – Investment & Construction Net Active Balance $5,726.97 $6,060.39 $6,293.84 $6,517.26 $6,835.87 $6,539.76 $6,465.36 ($74.40) Net Available
Slide 43: Asset Quality Metrics for NOOCRE and Construction Portfolio
Asset Quality Metrics for NOOCRE and Construction Portfolio Continue to Perform Well • Continued strong asset quality with minimal past PNFP CRE & Construction Accruing PD, Classified, and Non-Accruals due accruing loans and 99% of portfolio graded pass 0.23% 0.22% 0.22% • Reduced appetite for NOOCR
Slide 44: Multifamily – Loan Portfolio
Balance Sheet Highlights Multifamily – Loan Portfolio (DRAFT) Multifamily Highlights • 94.7% is located within the PNFP footprint 3Q 24 Multifamily Balances by Property Location • 53.1% are MF Construction loans (by commitment): 14.0% o Average number of units 289 ($20MM+ Construction) 11.9% 12.0% 1
Slide 45: Warehouse Highlights
Balance Sheet Highlights Multifamily – Loan Portfolio (DRAFT) Warehouse Highlights • Industrial production primarily focuses on construction opportunities with top-tier development platforms 3Q 24 Warehouse Balances by Property Location • Conservative loan basis exhibiting an average LTV of 51.0% an
Slide 46: Professional Office Highlights
Balance Sheet Highlights Multifamily – Loan Portfolio (DRAFT) Professional Office Highlights - 93.6% of Professional Office CRE properties are in PNFP markets - The concentration in Nashville is primarily due to the participation in the Nashville 3Q 24 Professional Office Balances by Property Locati
Slide 47: Professional Office Portfolio by Type and LTV
Balance Sheet Highlights Multifamily – Loan Portfolio (DRAFT) Professional Office Highlights 3Q 2024 Multi-Tenant Office LTVs 3Q 24 Professional Office 90.0% 79.4% Portfolio by Type 80.0% 70.0% 6% 60.0% 8% 50.0% Avg Bal: 40.0% $6.0MM Avg Bal: 30.0% Avg Bal: $3.0MM Avg Bal: 20.0% $3.1MM 8.9% 10.2% $1
Slide 48: Current Expected Credit Losses
Current Expected Credit Losses Total Allowance for Credit Losses for loans = $391.5mm or, 1.14% of loans, at September 30, 2024 $ in thousands Allowance for Off-Balance % of Loans Total Credit Losses Sheet At September 30, 2023 $346,192 1.08% (1) $21,469 $367,661 Net Charge Offs ($13,451) 0.17% (2)
Slide 49: Current Expected Credit Losses by Loan Category
Current Expected Credit Losses ($ in thousands) September 30, December 31, March 31, June 30, September 30, 2023 2023 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 $144,302 1.28% $148,212
Slide 50: Asset Quality
Asset Quality AS A % OF AS A % OF AS A % OF ($ in thousands) September 30, 2024 June 30, 2024 September 30, 2023 TOTAL LOANS TOTAL LOANS TOTAL LOANS NPLs and > 90 days Const. and land development $3,186 0.01% $853 0.00% - 0.00% Consumer RE 32,635 0.10% 35,355 0.11% 19,655 0.06% CRE – Owner Occupied
Slide 51: Annualized Net Loan Charge Offs by Loan Type
Balance Sheet – Loan Portfolio Annualized Net Loan Charge Offs by Loan Type 0.90% 0.80% 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% -0.10% CRE Construction C&I Consumer RE Consumer and other Total 2021 2022 2023 2024 Net Charge Off Rates 51
Slide 52: Loan Portfolio – 100/300 Test
Balance Sheet – Loan Portfolio – 100/300 Test ($ in thousands) Description 3Q24 2Q24 1Q24 4Q23 3Q23 2Q23 Loans secured by real estate: Construction, land development, and other loans: 1-4 family residential construction loans $667,600 $678,836 $672,284 $693,128 $684,366 $676,742 Other construction l
Slide 53: Balance Sheet – Deposit Portfolio
Balance Sheet – Deposit Portfolio Net Deposit Growth – YTD 3Q24 – Strategic Decisions: • Strategic Expansion - $755 million • Jacksonville, Atlanta, DC, Alabama, Kentucky, Franchise Finance, Equipment Finance • Recruiting Impact –$205 million • New RMs hired in past 3.0 years other than in our strat
Slide 54: Deposit Portfolio – Market Segmentation
Balance Sheet – Deposit Portfolio – Market Segmentation ($ in millions) TOTAL DEPOSITS CORE DEPOSITS NONCORE DEPOSITS TOTAL PINNACLE TRANSACTION AND MMDA CDs PUBLIC FUNDS and OTHER DEPOSITS 3Q24 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 3Q23 Nashville $14,782.5 $14,048.0 $13,057.5 $12,639.4 $741.2 $762.6 $983.8
Slide 55: Deposit Portfolio: Liquidity for Uninsured Deposits
Balance Sheet - Deposit Portfolio Estimated Liquidity Available for Uninsured Deposits Balances at ($s in millions) Sept. 30, 2024 Total Deposits $40,955 Less: Insured and/or Collateralized Deposits 28,070 Total Deposits – Uninsured / Uncollateralized $12,885 Estimated Liquidity Available for Uninsu
Slide 56: Balance Sheet – Bond Portfolio
Balance Sheet – Bond Portfolio 9/30/24 % of 6/30/24 % of 3/31/24 % of 12/31/23 % of Duration Net of Unhedged Security Type Quarter Avg. Yield - TE Balance Portfolio Balance Portfolio Balance Portfolio Balance Portfolio Hedging Duration Treasuries 1,480,557 17.6% 1,548,161 18.9% 996,793 12.9% 985,766
Slide 57: 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 % D Net Interest Income % D 1.5% 1.6% 1.4% 1.4% 1.2% 1.0% 0.6% 0.7% 1.0% 0.6% 0.3% 0.2% 0.0% 0.0% -0.1% -0.3% -1.0% -0.6% -0.7% -1.0% -0.7% -1.2% -1.2% -1.6% -1.4% -1.4% -2.0% -3
Slide 58: Income Statement – Revenue Per Share
Income Statement – Revenue Per Share LTM Revenue Per Share Growth* vs. Peers $23.00 $22.49 20.0% 19.0% 18.2% 17.5% $21.89 $22.00 16.2% $21.60 18.0% 16.2% $21.39 $21.48 $21.45 $21.09 16.0% 13.8% 13.1% 14.3% 15.2% 16.0% $21.00 14.5% $20.33 12.8% $20.00 13.0% 13.0% 11.3% 14.0% $19.51 11.6% 14.9% 11.6%
Slide 59: Income Statement – PPNR
Income Statement – PPNR ($s in thousands) 2020 2021 2022 2023 2024 YTD PPNR Trends Net interest income $821,788 $932,401 $1,129,293 $1,262,118 $1,001,800 Adjusted PPNR Noninterest income 317,840 395,734 416,124 433,253 259,633 $800 Noninterest expense (564,455) (660,104) (779,999) (887,769) (773,073
Slide 60: Tangible Book Value Growth Continued
Tangible Book Value Growth Continued One of PNFP’s fundamental operating principles is that TBV compounding creates long-term shareholder value Tangible Book Value per Focused on preserving and growing Common Share** TBV per common share – YTD growth $55.12 $48.78 2024* 9.7% $40.98 $42.44 $35.68 202
Slide 61: BHG Financial Overview
BHG Financial Overview BHG continues to build a stronger franchise with its highly desirable product set • BHG provides loans in as little as 3 days from application Origination Volume ($bn) to funding. $6.0 • A truly diversified funding strategy creates ample liquidity to fund loan originations, th
Slide 62: Increased Focus on Higher FICO Originations
Increased Focus on Higher FICO Originations Over 86% of YTD 2024 Originations were originated to FICO scores of 700 Originations • BHG continues to refine and FICO Mix ($ mm) Cumulative Net Loss Curves tighten its credit underwriting: 2014 $260 • Losses in certain risk classes, particularly the lowe
Slide 63: BHG Diverse, Growing Funding Channels
BHGHas BHG Credit Quality Diverse, Continues Growing FundingtoChannels Impress Sophisticated Proactive credit management scoringchannels of placement models produce provides impressive flexibility results to BHG’s platform Loan Sale Auction Over 1,650 banks in network. 673 unique banks have acquired
Slide 64: BHG Financials
BHG Financials At Sep 30, At Jun 30, At Mar 31, ($'s in thousands) ($'s in thousands) 3Q 2024 2Q 2024 1Q 2024 2024 2024 2024 Cash and Cash Equivalents 608,749 598,585 671,722 Interest Income $ 126,503 $ 124,903 $ 140,564 Loans Held for Investment 2,612,574 2,745,676 2,988,136 Allowance for Loan Loss
Slide 65: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 65
Slide 66: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 66
Slide 67: 2024 Peer Group
2024 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 Cadence Bank CADE Tupelo, MS Comerica Inc. CMA Dallas, TX Commerce Bancshares, Inc. CBSH Kansa
Slide 68: Investor Call
Investor Call THIRD QUARTER 2024 M. TERRY TURNER, PRESIDENT AND CEO HAROLD R. CARPENTER, EVP AND CFO
Pinnacle Financial Partners — Q3 2024 Earnings Presentation on 6ix