Pinnacle Financial Partners Q3 adjusted profit beats estimates on loan, fee income growth

Pinnacle Financial Partners

Wed 20:27

Overview
US regional bank's Q3 adjusted EPS beat analyst expectations, supported by loan, deposit and fee income growth
Q3 revenue rose sharply yr/yr, reflecting impact of Synovus merger
Company added 96 experienced revenue producers in Q3, supporting expansion

Outlook
Company did not provide specific financial guidance for the upcoming quarter or full year in its press release

Result Drivers
LOAN AND DEPOSIT GROWTH - Co said period-end loans rose 2% from prior qtr, mainly in commercial and industrial credits, and deposits increased 2%, reflecting seasonal growth
FEE INCOME - Linked-qtr adjusted non-interest revenue rose, driven by higher income from equity-method investment in BHG and a $23 mln gain from equipment lease payoff
HIGHER EMPLOYMENT EXPENSES - Adjusted non-interest expense increased 4% qtr/qtr, mainly due to higher employment costs from incentive accruals and accelerated hiring

Company press release: ID:nBw3D53k7a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
 
$1.31 bln
 
Q3 Adjusted EPS
Beat
$2.69
$2.63 (20 Analysts)
Q3 EPS
 
$2.40
 
Q3 Net Interest Income
 
$986 mln
 
Q3 Net Interest Margin (%)
 
3.40%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Pinnacle Financial Partners, Inc. is $117.00, about 22.8% above its October 20 closing price of $95.29
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads
Oct 19 - ServisFirst Bancshares Q3 profit jumps on loan growth, wider interest margin 
Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality
Oct 20 - East West Bancorp Q3 revenue beats estimates on loan and deposit growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)