Pinnacle Financial Partners, Inc. Q1 FY2025 earnings call

Terry Turner emphasized Pinnacle's relentless focus on shareholder value, driven by a hedgehog strategy of attracting top bankers and enabling them to consolidate clients. He highlighted revenue growth (14.2% first quarter '25 vs '24), adjusted EPS growth (24.2%), and tangible book value per share growth. Harold Carpenter discussed loan growth (7.3% linked quarter annualized), deposit growth ($1.6B in first quarter, with 7%-10% growth outlook for 2025), NIM (flattish at 3.21% with upward bias for second quarter), strong BHG performance (fee revenues over $20M in first quarter, revised earnings estimate to 20% growth over 2024), and credit considerations including net charge-offs and portfolio reviews for tariff impacts.

No detailed breakdown of product segments with absolute terms and revenue contribution % provided in the transcript.

Loan growth outlook for 2025 is 8%-11%. Deposit growth outlook for 2025 is 7%-10%, with second quarter potentially tougher due to seasonality. NIM expected to be flattish with upward bias in second quarter. Net interest income growth outlook for 2025 is 11%-13%. BHG's earnings estimate revised from 10% growth to 20% growth over 2024.

Volatility in the economy slowing growth and impacting bank performance. Uncertainty around tariffs and trade wars and their potential impact on loan portfolios. Potential reserve build if economic conditions deteriorate significantly.

Q: Did you change the baseline assumption under CECL for calculating reserves?

A: We kept it unchanged but used adverse scenario for qualitative assumptions.

Q: Is BHG's growth target dependent on continued securitizations?

A: BHG has capacity in the bank channel to place credits and plans another ABS issuance end of year.

Q: Why might deposit growth slow in Q2?

A: Traditionally April is tough for deposit growth, and we hedge against that.

Q: What's the outlook for loan pricing margin if yield curve changes?

A: More risk if inverted yield curve, but we're in good shape with 1-4 rate cuts.

Q: Which portfolios are being assessed for tariff impacts?

A: Trucking, multi-family, and leverage lending.

Q: How is expense guide related to hiring?

A: Expense guide contemplates hiring as pipeline is shaping up well.

Q: What's the status of CET1 ratio outlook?

A: CET1 ratio bled down 10 basis points, but we can engineer stability with $900M loan growth.

Q: Is deposit growth sustainable with rate cuts?

A: We can manage rate cuts, but inverted yield curve is a concern.

Q: How is C&I lending impacted by tariffs?

A: Credit officers are monitoring trucking, multi-family, and leverage lending portfolios for stress.

Q: What does 'nimble' mean in a recession?

A: Staying close to clients, responsive, and using incentives as a cushion.

Q: How is the trucking portfolio size?

A: Approximately $700M.

Q: Is new market expansion more likely?

A: We'll continue hiring good people, but it's not more or less likely than at the start of the year.

Q: Will other loan buckets contribute to growth?

A: Construction volume may start impacting later in the year, with current projects continuing to fund.