Q3 Earnings Snapshot: Pinnacle’s (PNFP) net income jumps to US$136.5 Mn

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 Q3 Earnings Snapshot: Pinnacle’s (PNFP) net income jumps to US$136.5 Mn
Image source: Worawee Meepian,Shutterstock

Highlights

  • Pinnacle Financial Partners Inc’s (NASDAQ: PNFP) third-quarter net income was US$136.57 million compared to US$110,64 million in the same period of 2020.

  • Its net interest income for the quarter was US$237.5 million versus US$206.6 million in the third quarter of 2020, a YoY growth rate of 15.0%.

  • Pinnacle’s revenue rose from US$331.4 million in Q3, 2020, to US$341.6 million in Q3 2021.

The Tennessee-based bank Pinnacle Financial Partners Inc. (NASDAQ: PNFP) on Tuesday reported a third-quarter net income of US$136.57 million, beating analysts’ expectations.

Its earnings per share of US$1.75 surpassed analysts’ forecast of US$1.54 per share.

The PNFP stock was up 2.17% to US$99.38 in the after-hours session following the results.

Pinnacle CEO M. Terry Turner said that the bank delivered strong organic growth despite an uncertain economic environment. Exuding confidence in Pinnacle’s business model, Turner further said that the markets continue to provide tremendous lending opportunities.

Turner said the bank developed 32 new revenue sources during the third quarter and focused on new markets like Atlanta, Huntsville, and Birmingham. He foresees continued growth in the lending segment next year, driven by opportunities in new markets.

Pinnacle’s Q3 performance

Pinnacle’s revenue rose from US$331.4 million in Q3, 2020, to US$341.6 million in Q3, 2021. In the quarter ended Sep 30, 2021, its revenue per fully diluted common share was a record US$4.50, or 13.9% YoY growth rate, compared to US$3.95 in the third quarter of 2020. In the second quarter of 2021, the revenue per fully diluted common share was US$4.37.

Its net interest income for the quarter was US$237.5 million versus US$206.6 million in the third quarter of 2020, a YoY growth rate of 15.0%.

In the second quarter of 2021, the net interest income was US$233.2 million. In addition, the net interest margin was 3.03% in Q3 of 2021 against 2.82% in the year-ago quarter.

Its third-quarter net income was US$136.57 million compared to US$110,64 million in the same period of 2020. In the June quarter of 2021, its net income was US$131,79 million.

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Pinnacle CEO M. Terry Turner said that despite an uncertain economic environment, the bank delivered strong organic growth.

Source: Pixabay

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Industry Recognitions

Pinnacle said that it was bestowed with 16 honors over the past year in recognition of its contribution to the industry and society.

On Sep 18, the company said that it bagged the sixth spot on the latest list of Fortune magazine and Great Place to Work for the country’s best large workplaces for women.

It was its fourth appearance on the list, after 2020, 2018, and 2017. By the end of 2020, Pinnacle had hired 20 more women in various leadership roles.

Pinnacle’s market cap is US$7.4 billion, while its P/E and forward P/E one-year ratios are 15.84 and 15.18, respectively. Its yearly dividend is US$0.72. Also, the 52-week highest and lowest prices of the PNFP stock were US$98.63 and US$37.77, respectively.

Bottomline

The financial sector has made a strong comeback from last year’s covid crisis. This week, several major banks are expected to report their quarterly results, including Goldman Sachs and JP Morgan. As such, the focus will be on the financial stocks in the market. However, investors should evaluate the companies carefully before investing in stocks.

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