Download PDF

1. Company Snapshot

1.a. Company Description

Pinnacle Financial Partners, Inc., together with its subsidiaries, operates as the bank holding company for Pinnacle Bank that provides various banking products and services in the United States.The company accepts various deposits, including savings, checking, noninterest-bearing and interest-bearing checking, money market, and certificate of deposit accounts.Its loan products include commercial loans, such as equipment and working capital loans; commercial real estate loans comprising investment properties and business loans secured by real estate; and loans to individuals consisting of secured and unsecured installment and term loans, lines of credit, residential first mortgage loans, and home equity loans and lines of credit, as well as provides credit cards for consumers and businesses.


The company also offers various securities and other financial products; investment products; brokerage and investment advisory programs; and fiduciary and investment management services, such as personal trust, endowments, foundations, individual retirement accounts, pensions, and custody.In addition, it provides insurance agency services primarily in the property and casualty area; merger and acquisition advisory services; and private debt, equity and mezzanine, and other middle-market advisory services.Further, the company offers treasury management, telephone and online banking, mobile banking, debit cards, direct deposit and remote deposit capture, mobile deposit option, automated teller machine, and cash management services.


It serves individuals, small to medium-sized businesses, and professional entities.As of December 31, 2020, the company operated 114 offices, including 48 in Tennessee, 36 in North Carolina, 20 in South Carolina, 9 in Virginia, and 1 in Georgia.Pinnacle Financial Partners, Inc.


was incorporated in 2000 and is headquartered in Nashville, Tennessee.

Show Full description

1.b. Last Insights on PNFP

Pinnacle Financial Partners, Inc.'s recent performance was impacted by merger-related concerns and integration risks associated with its acquisition by Synovus Financial Corp. The company's Q3 2025 earnings call highlighted robust deposit and loan growth, conservative underwriting, and healthy capital ratios. Despite a strong quarterly earnings beat, with EPS of $2.27, exceeding the Zacks Consensus Estimate of $2.05, investors remain cautious. A law firm, Halper Sadeh LLC, is investigating the fairness of the merger to Pinnacle shareholders. The company's solid credit quality and attractive valuation are positives. (Source: Zacks, Business Wire)

1.c. Company Highlights

2. Pinnacle Financial Partners' (PNFP) Q2 2025 Earnings Analysis

Pinnacle Financial Partners' (PNFP) second-quarter 2025 earnings conference call highlighted the company's strong financial performance, with revenue up 15.1% year-over-year, adjusted EPS up 22.7% to $2, and tangible book value per share up 10.9%. The company's long-term execution of its differentiated model yielded double-digit CAGRs over the last decade on these metrics. The actual EPS of $2 came in above estimates of $1.92.

Publication Date: Jul -17

📋 Highlights
  • Revenue Growth: Pinnacle Financial Partners' revenue grew 15.1% year-over-year, with adjusted EPS up 22.7% and tangible book value per share up 10.9% in Q2 '25.
  • Loan and Deposit Growth: End-of-period loans increased by 10.7% linked quarter annualized, while deposit growth came in at a 4.7% linked quarter annualized growth rate.
  • 2025 Outlook: Pinnacle adjusted its 2025 outlook, including loan growth of 9% to 11%, total deposit growth of 7% to 10%, and fee growth of 12% to 15%.
  • Net Interest Income and Expenses: Net interest income growth outlook for 2025 is estimated to be 12% to 13%, with net charge-offs expected to be around 18 to 20 basis points and expenses in the range of $1.145 billion to $1.155 billion.
  • Bankers Healthcare Group (BHG) Growth: BHG is expected to see 40% growth in 2025, with earnings driven by both origination growth and credit, and is expected to contribute significantly to Pinnacle's growth.

Financial Highlights

The company's financial highlights include end-of-period loans increased by 10.7% linked quarter annualized, deposit growth at a 4.7% linked quarter annualized growth rate, and net interest income growth outlook for 2025 estimated to be 12% to 13%. Additionally, net charge-offs for 2025 are expected to be around 18 to 20 basis points. The Bankers Healthcare Group (BHG) is expected to see 40% growth in 2025.

Growth Strategy

The growth is attributed to hiring experienced revenue producers, primarily from larger competitors, with an average experience of 18 years. This strategy allows for rapid and reliable growth while maintaining outstanding asset quality. Pinnacle's market share takeaway strategy targets the largest market share leaders in its footprint, capitalizing on their difficult client experience.

Valuation Metrics

At current prices, PNFP trades at a P/E Ratio of 15.26, a P/B Ratio of 1.37, and a P/TBV of 1.53. The stock's Dividend Yield is 0.78%, and the Free Cash Flow Yield is 6.36%. The ROIC is 4.78%, and the ROE is 9.2%. With a Net Debt / EBITDA of -0.6, the company's valuation seems reasonable, considering its growth prospects.

Outlook and Guidance

The company has adjusted its 2025 outlook, including loan growth of 9% to 11%, total deposit growth of 7% to 10%, fee growth of 12% to 15%, and expenses in the range of $1.145 billion to $1.155 billion. Management remains optimistic about growth, citing a 5-year cohort of hires from 2020 to 2024, expected to peak at around $19 billion.

Risk and Opportunities

According to management, clients are cautious due to uncertainty around tariffs and macroeconomic issues, but they see underlying optimism among business owners. The company expects commercial real estate (CRE) growth to pick up, targeting 70% of capital for construction and 225% for CRE. As noted by management, "We see a lot of opportunity for growth, particularly in our target markets." The company's focus on organic growth, with 6 M&A transactions accounting for $12 billion of its $55 billion in assets, also presents opportunities for future growth.

3. NewsRoom

Card image cap

29,323 Shares in Pinnacle Financial Partners, Inc. $PNFP Purchased by Edgestream Partners L.P.

Dec -04

Source: defenseworld.net

Card image cap

Charles Schwab Investment Management Inc. Reduces Position in Pinnacle Financial Partners, Inc. $PNFP

Nov -29

Source: defenseworld.net

Card image cap

Boston Partners Trims Stock Position in Pinnacle Financial Partners, Inc. $PNFP

Nov -29

Source: defenseworld.net

Card image cap

Synovus Secures Federal Regulatory Approval for Merger With Pinnacle

Nov -26

Source: zacks.com

Card image cap

Comparing Pinnacle Financial Partners (NASDAQ:PNFP) and Republic Bancorp (NASDAQ:RBCAA)

Nov -25

Source: defenseworld.net

Card image cap

Analyzing Pinnacle Financial Partners (NASDAQ:PNFP) and Peoples Bancorp of North Carolina (NASDAQ:PEBK)

Nov -22

Source: defenseworld.net

Card image cap

Invesco Small Cap Value Fund Q3 2025 Performance Review

Nov -20

Source: seekingalpha.com

Card image cap

Pinnacle Financial Partners Is the No. 4 Best Bank to Work for in the Nation

Nov -12

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.00%)

6. Segments

Banking and Related Activities

Expected Growth: 13%

Pinnacle Financial Partners, Inc.'s 13% growth in Banking and Related Activities is driven by strategic acquisitions, expansion into new markets, and a focus on commercial lending. Additionally, the company's emphasis on customer relationships, digital banking capabilities, and cost management initiatives have contributed to its growth.

7. Detailed Products

Commercial Banking

Pinnacle Financial Partners offers commercial banking services to businesses, including cash management, treasury management, and lending solutions.

Consumer Banking

Pinnacle Financial Partners provides consumer banking services, including checking and savings accounts, credit cards, and personal loans.

Wealth Management

Pinnacle Financial Partners offers wealth management services, including investment management, financial planning, and retirement planning.

Mortgage Banking

Pinnacle Financial Partners provides mortgage banking services, including residential and commercial mortgage lending.

Insurance Services

Pinnacle Financial Partners offers insurance services, including property and casualty insurance, life insurance, and employee benefits.

Treasury Management

Pinnacle Financial Partners provides treasury management services, including cash management, wire transfers, and account reconciliation.

Investment Services

Pinnacle Financial Partners offers investment services, including brokerage services, investment advice, and retirement plan services.

8. Pinnacle Financial Partners, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Pinnacle Financial Partners, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.

Bargaining Power Of Customers

Pinnacle Financial Partners, Inc. has a large customer base, but customers have significant bargaining power due to the availability of alternative financial institutions.

Bargaining Power Of Suppliers

Pinnacle Financial Partners, Inc. has a diversified supplier base, reducing the bargaining power of individual suppliers.

Threat Of New Entrants

While there are barriers to entry in the financial services industry, new entrants can still pose a threat to Pinnacle Financial Partners, Inc. through innovative business models and digital platforms.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.77%
Debt Cost 4.31%
Equity Weight 68.23%
Equity Cost 9.40%
WACC 7.78%
Leverage 46.55%

11. Quality Control: Pinnacle Financial Partners, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Texas Capital Bancshares

A-Score: 6.3/10

Value: 6.5

Growth: 5.3

Quality: 6.6

Yield: 5.0

Momentum: 5.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Citizens Business Bank

A-Score: 6.3/10

Value: 5.7

Growth: 5.0

Quality: 7.3

Yield: 8.0

Momentum: 4.5

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Old National

A-Score: 6.1/10

Value: 6.0

Growth: 5.4

Quality: 5.7

Yield: 6.0

Momentum: 7.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Huntington Bancshares

A-Score: 6.1/10

Value: 6.5

Growth: 4.8

Quality: 5.7

Yield: 8.0

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Pinnacle Financial Partners

A-Score: 5.5/10

Value: 6.8

Growth: 7.4

Quality: 7.1

Yield: 2.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
United Community Banks

A-Score: 5.3/10

Value: 6.6

Growth: 5.0

Quality: 7.5

Yield: 5.0

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

95.98$

Current Price

95.98$

Potential

-0.00%

Expected Cash-Flows