Pinnacle Financial Partners delivered a strong fourth quarter for 2024, underscored by robust balance sheet growth, resilient net interest income (NII) momentum, and continued deposit expansion. Reported revenue of $684.36 million and net income of $151.26 million produced diluted EPS of $1.93, supported by a 3.22% net interest margin (NIM) in the quarter and a track record of NII growth that the company attributes to its hedgehog strategy—recruiting top revenue producers, and expanding high-growth markets. Management emphasized that 2024 was highlighted by record revenue-producer hires and a disciplined deployment of capital to grow loans and deposits, while acknowledging that a meaningful portion of reported net income was affected by off-balance sheet and non-operating items, notably within the BHG (BrightBridge) fintech platform.
Looking into 2025, PNFP provided a multi-faceted growth plan anchored by: (1) a target loan end-of-period growth of 8%–11% supported by an ongoing recruitment-driven balance sheet expansion; (2) NII growth guidance of 11%–13% contingent on a favorable or more traditional yield curve; (3) deposit growth guidance of 7%–10% with continued emphasis on pricing discipline and strong deposit betas; (4) fee growth guidance of 8%–10%, with BHG expected to contribute meaningfully but still subject to mix and one-off items; (5) a 2025 expense guide of $1.13–$1.15 billion, with incentive compensation remaining a key driver of expense evolution and EPS delivery; and (6) an expectation for BHG to contribute mid‑teen earnings growth and to continue selling a networked, digital consumer lending model while strengthening the core balance sheet. The company also reinforced its strategic preference for organic growth through revenue producer hiring rather than pursuing M&A.
Overall, PNFP enters 2025 with compelling organic growth leverage, healthy liquidity, and a disciplined risk posture, but the near-term trajectory will depend on the yield curve and deposit pricing dynamics as well as the ongoing performance of BHG and other non-core banking activities. Investors should monitor loan pricing, deposit beta, and the progression of BHG’s off-balance sheet exposure as key potential swing factors for margins and earnings power in 2025–2026.