On October 17, 2023, Pinnacle Financial Partners Inc (PNFP, Financial) released its earnings report for the third quarter of 2023. Despite a challenging economic backdrop, the company reported a diluted EPS of $1.69, marking an 11.5% decrease compared to the same quarter in 2022. However, the net income per diluted common share for the nine months ended Sept. 30, 2023, saw an increase of approximately 10.5% compared to the same period in 2022.
Financial Performance and Achievements
Pinnacle Financial Partners Inc (PNFP, Financial) reported a net income per diluted common share of $1.69 for the quarter ended Sept. 30, 2023, compared to $1.91 for the quarter ended Sept. 30, 2022. Despite the decrease in quarterly net income, the company saw a 10.5% increase in net income for the nine months ended Sept. 30, 2023, compared to the same period in 2022.
Despite a volatile economic backdrop, our firm continues to benefit from our unmatched ability to attract talent and create raving clients that refuse to leave us," said M. Terry Turner, Pinnacle's president and chief executive officer. "We continued to deliver outsized growth to our already strong client deposit base, with our core deposits increasing by 10.1 percent annualized this quarter."
Balance Sheet Growth and Liquidity
Total assets at Sept. 30, 2023, were $47.5 billion, reflecting a year-over-year increase of 15.9 percent and a linked-quarter annualized increase of 5.5 percent. The company's loan growth during the third quarter of 2023 was $790 million, or 10.1 percent linked-quarter annualized. On-balance sheet liquidity remained strong, totaling $7.4 billion as of Sept. 30, 2023.
Pre-Tax, Pre-Provision Net Revenue (PPNR) Growth
Pre-tax, pre-provision net revenues (PPNR) for the three and nine months ended Sept. 30, 2023 were $194.8 million and $662.4 million, respectively. This represents a decrease of 7.8 percent and an increase of 17.1 percent, respectively, from the same periods in 2022.
Soundness and Profitability
Net interest margin was 3.06 percent for the third quarter of 2023, compared to 3.20 percent for the second quarter of 2023 and 3.47 percent for the third quarter of 2022. The provision for credit losses was $26.8 million in the third quarter of 2023, compared to $31.7 million in the second quarter of 2023 and $27.5 million in the third quarter of 2022.
Dividends
On Oct. 17, 2023, Pinnacle Financial's Board of Directors approved a quarterly cash dividend of $0.22 per common share to be paid on Nov. 24, 2023 to common shareholders of record as of the close of business on Nov. 3, 2023.
Despite the challenges of the current economic environment, Pinnacle Financial Partners Inc (PNFP, Financial) continues to demonstrate resilience and growth, providing value to its shareholders and clients.
