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PNFP Reports 2Q25 Diluted EPS of $2.00
Linked-quarter annualized growth for loans was 10.7%; Net interest margin increased to 3.23% in 2Q25 NASHVILLE, Tenn., July 15, 2025--(BUSINESS WIRE)--Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported net income per diluted common share of $2.00 for the quarter ended June 30, 2025, compared to net income per diluted common share of $0.64 for the quarter ended June 30, 2024, an increase of approximately 212.5 percent. Net income per diluted common share was $3.77 for the six months ended June 30, 2025, compared to net income per diluted common share of $2.21 for the six months ended June 30, 2024, an increase of approximately 70.6 percent. After considering the adjustments noted in the table below, net income per diluted common share was $2.00 for the three months ended June 30, 2025, compared to $1.63 for the three months ended June 30, 2024, an increase of 22.7 percent. Net income per diluted common share, adjusted for the items noted in the table below, was $3.90 for the six months ended June 30, 2025, compared to net income per diluted common share of $3.16 for the six months ended June 30, 2024, an increase of approximately 23.4 percent. Three months ended Six Months Ended June 30, 2025 March 31, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Diluted earnings per common share $ 2.00 $ 1.77 $ 0.64 $ 3.77 $ 2.21 Adjustments, net of tax (1): Investment losses on sales of securities, net — 0.12 0.71 0.12 0.71 Recognition of mortgage servicing asset — — — — (0.12 ) FDIC special assessment — — — — 0.08 Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives — — 0.28 — 0.28 Diluted earnings per common share after adjustments $ 2.00 $ 1.90 $ 1.63 $ 3.90 $ 3.16 Numbers may not foot due to rounding. (1): Adjustments include tax effect calculated using a marginal tax rate of 25.00 percent for all periods presented. "Second quarter results demonstrate again the reliability of our differentiated model to produce outsized revenue, earnings per share and loan growth regardless of the operating environment," said M. Terry Turner, Pinnacle's president and chief executive officer. "Our second quarter revenues increased by approximately 36.4 percent linked-quarter annualized over the first quarter of 2025 and 21.8 percent over the same quarter last year. Fully diluted earnings per share after adjustments were up 21.1 percent linked-quarter annualized over the first quarter of 2025 and 22.7 percent over the same quarter last year. Also, loan growth for the second quarter was approximately 10.7 percent linked-quarter annualized in comparison to the first quarter of 2025. "During the second quarter, we continued to be very active on the recruiting front, attracting 38 revenue producers as we continue to invest in the future growth of our firm. Thus far this year, we have hired 71 revenue producers which puts us on pace to have another very strong recruiting year for our firm. During the second quarter, we announced an expansion into Richmond, VA, another outstanding banking market in the Southeast. We entered Richmond with a de novo start by hiring six local bankers with an average experience level of approximately 28 years. We are very excited to welcome these banking professionals to the Pinnacle family." BALANCE SHEET GROWTH AND LIQUIDITY: Total assets at June 30, 2025, were $54.8 billion, an increase of approximately $546.6 million from March 31, 2025, and $5.4 billion from June 30, 2024, reflecting a linked-quarter annualized increase of 4.0 percent and a year-over-year increase of 11.0 percent. A further analysis of select balance sheet trends follows: Balances at Linked-Quarter Annualized % Change Balances at Year-over-Year % Change (dollars in thousands) June 30, 2025 March 31, 2025 June 30, 2024 Loans $ 37,105,164 $ 36,136,746 10.7% $ 33,769,150 9.9% Securities 9,066,651 8,718,794 16.0% 7,882,891 15.0% Other interest-earning assets 2,923,964 3,776,121 (90.3)% 2,433,910 20.1% Total interest-earning assets $ 49,095,779 $ 48,631,661 3.8% $ 44,085,951 11.4% Core deposits: Noninterest-bearing deposits $ 8,640,759 $ 8,507,351 6.3% $ 7,932,882 8.9% Interest-bearing core deposits(1) $ 31,120,278 $ 31,505,648 (4.9)% $ 27,024,945 15.2% Noncore deposits and other funding(2) $ 7,698,394 $ 7,042,510 37.3% $ 7,569,703 1.7% Total funding $ 47,459,431 $ 47,055,509 3.4% $ 42,527,530 11.6% (1): Interest-bearing core deposits are interest-bearing deposits, money market accounts and time deposits less than $250,000 including reciprocating time and money market deposits. (2): Noncore deposits and other funding consists of time deposits greater than $250,000, securities sold under agreements to repurchase, public funds, brokered deposits, FHLB advances and subordinated debt. "Loan growth was one of our highlights for the second quarter," said Harold R. Carpenter, Pinnacle's chief financial officer. "Our commercial and industrial (C&I) loan segment continued to show strong growth as these loans increased 21.9 percent linked quarter annualized in the second quarter. Our other loans, including commercial real estate loans, increased linked-quarter at an annualized rate of approximately 3.5 percent between the first and second quarters. We expect growth rates for other loan segments to increase primarily because our appetite for sound commercial real estate projects has increased because of essentially achieving our lower concentration limits for commercial real estate lending. We have been below our construction lending concentration limit for several quarters and are now just slightly above our limit for the broader commercial real estate lending concentration limit. "We will continue to rely on our recent hires, newer markets and specialty areas to fuel our loan growth as they move clients from competitors to our firm in an outsized way. As to deposit growth, our deposits increased by $519.8 million in the second quarter from the first quarter. Perhaps most important is that our noninterest bearing deposits, which are primarily composed of client operating accounts, increased by $133.4 million in the second quarter, and are now up by $470.3 million year-to date, or about 11.5 percent annualized." PRE-TAX, PRE-PROVISION NET REVENUE (PPNR) GROWTH AND PROFITABILITY: Pre-tax, pre-provision net revenues (PPNR) for the three and six months ended June 30, 2025 were $218.5 million and $405.9 million, respectively, compared to $95.2 million and $280.9 million, respectively, recognized in the three and six months ended June 30, 2024. As noted in the table below, adjusted PPNR for the three and six months ended June 30, 2025 were $218.7 million and $418.6 million, respectively, compared to $195.7 million and $377.0 million, respectively, recognized in the three and six months ended June 30, 2024, an increase of 11.8 percent and 11.0 percent, respectively. Three months ended Six months ended June 30, June 30, (dollars in thousands) 2025 2024 % change 2025 2024 % change Revenues: Net interest income $ 379,533 $ 332,262 14.2 % $ 743,961 $ 650,296 14.4 % Noninterest income 125,457 34,288 >100.0 % 223,883 144,391 55.1 % Total revenues 504,990 366,550 37.8 % 967,844 794,687 21.8 % Noninterest expense 286,446 271,389 5.5 % 561,933 513,754 9.4 % Pre-tax, pre-provision net revenue 218,544 95,161 >100.0 % 405,911 280,933 44.5 % Adjustments: Investment losses on sales of securities, net — 72,103 (100.0 )% 12,512 72,103 >(100.0 )% Recognition of mortgage servicing asset — — NM — (11,812 ) (100.0 )% ORE expense 137 22 >100.0 % 195 106 84.0 % FDIC special assessment — — NM — 7,250 (100.0 )% Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives — 28,400 (100.0 )% — 28,400 (100.0 )% Adjusted pre-tax pre-provision net revenue $ 218,681 $ 195,686 11.8 % $ 418,618 $ 376,980 11.0 % Three months ended Six months ended June 30, 2025 March 31, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net interest margin 3.23 % 3.21 % 3.14 % 3.22 % 3.09 % Efficiency ratio 56.72 % 59.52 % 74.04 % 58.06 % 64.65 % Return on average assets 1.15 % 1.05 % 0.41 % 1.10 % 0.70 % Return on average tangible common equity (TCE) 13.75 % 12.51 % 4.90 % 13.14 % 8.48 % Average loan to deposit ratio 83.57 % 83.78 % 84.95 % 83.68 % 84.84 % Net interest income for the second quarter of 2025 was $379.5 million, compared to $332.3 million for the second quarter of 2024, a year-over-year growth rate of 14.2 percent. Net interest margin was 3.23 percent for the second quarter of 2025, compared to 3.14 percent for the second quarter of 2024. Total revenues for the second quarter of 2025 were $505.0 million, compared to $366.6 million for the second quarter of 2024. As noted in the table below, adjusted total revenues for the second quarter of 2025 were $505.0 million, compared to $438.7 million for the second quarter of 2024, a year-over-year increase of 15.1 percent. Three months ended Linked-quarter Annualized % Change Three months ended Yr-over-Yr % Change (dollars in thousands) June 30, 2025 March 31, 2025 June 30, 2024 Net interest income $ 379,533 $ 364,428 16.6 % $ 332,262 14.2 % Noninterest income 125,457 98,426 >100.0 % 34,288 >100.0 % Total revenues 504,990 462,854 36.4 % 366,550 37.8 % Adjustments: Investment losses on sales of securities, net — 12,512 (100.0 )% 72,103 (100.0 )% Adjusted total revenues $ 504,990 $ 475,366 24.9 % $ 438,653 15.1 % Wealth management revenues, which include investment, trust and insurance services, were $32.3 million for the second quarter of 2025, compared to $27.8 million for the second quarter of 2024, a year-over-year increase of 16.4 percent. The increase in wealth management revenues continues to be primarily attributable to an increase in capacity as we hire more revenue producers across the firm, but particularly in the areas of the firm's most recent market extensions. Income from the firm's investment in Banker's Healthcare Group (BHG) was $26.0 million for the second quarter of 2025, compared to $18.7 million for the second quarter of 2024, a year-over-year increase of 39.3 percent. BHG's loan originations were $1.5 billion in the second quarter of 2025, compared to $1.2 billion in the first quarter of 2025 and $871 million in the second quarter of 2024. Loans sold to BHG's community bank partners were approximately $614 million in the second quarter of 2025, compared to $605 million in the first quarter of 2025 and $467 million in the second quarter of 2024. BHG reserves for on-balance sheet loan losses were $279.1 million, or 10.5 percent of loans held for investment at June 30, 2025, compared to 9.2 percent at March 31, 2025, and 9.9 percent at June 30, 2024. At June 30, 2025, BHG increased its accrual for estimated losses attributable to loan substitutions and prepayments to $624.4 million, or 7.8 percent of the unpaid balances on loans that were previously purchased by BHG's community bank network, compared to 7.5 percent at March 31, 2025 and 5.9 percent at June 30, 2024. Other noninterest income was $47.9 million for the quarter ended June 30, 2025, an increase of $6.1 million from the second quarter of 2024. Contributing to the increase in other noninterest income during the second quarter of 2025 was approximately $3.2 million in revenues due to the increase in fair value of other equity investments. Noninterest expense for the second quarter of 2025 was $286.4 million, compared to $271.4 million for the second quarter of 2024. As noted in the table below, adjusted noninterest expense for the second quarter of 2025 was $286.3 million, compared to $243.0 million for the second quarter of 2024. Three months ended Linked-quarter Annualized % Change Three months ended Yr-over-yr % Change (dollars in thousands) June 30, 2025 March 31, 2025 June 30, 2024 Noninterest expense $ 286,446 $ 275,487 15.9 % $ 271,389 5.5 % Less: ORE expense 137 58 >100.0 % 22 >100.0 % Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives — — N/A 28,400 100.0 % Adjusted noninterest expense $ 286,309 $ 275,429 15.8 % $ 242,967 17.8 % Salaries and employee benefits were $181.2 million in the second quarter of 2025, compared to $150.1 million in the second quarter of 2024, reflecting a year-over-year increase of 20.7 percent. Cash incentive costs in the second quarter of 2025 totaling $33.5 million were approximately $16.0 million higher than the second quarter of 2024. The increase in cash incentive costs was due to increases in headcount, annual merit raises and other base salary adjustments for participants in the Company's annual cash incentive plan and, importantly, an increase in the estimated payout for anticipated incentive award payouts. The second quarter 2024 accrual assumed an approximate 80 percent of target payout for 2024 compared to a second quarter 2025 accrual that assumes an approximate 115 percent of target payout for 2025. Equipment and occupancy costs were $48.0 million in the second quarter of 2025, compared to $41.0 million in the second quarter of 2024, resulting in a year-over-year increase of 17.1 percent. This increase was primarily attributable to the opening of nine new full-service locations throughout the Company's footprint since January 1, 2024 and the relocation of the Company's corporate headquarters to a new location in downtown Nashville during the first quarter of 2025. Marketing and other business development costs were $8.8 million in the second quarter of 2025, compared to $6.8 million in the second quarter of 2024, resulting in a year-over-year increase of 29.5 percent. The primary drivers of the increases in marketing and business development costs were the Company's partnership with The Pinnacle, Nashville's newest live music venue, which opened in March 2025, and other factors including increases in both client and associate engagement expenses due to our increased headcount and market extensions. Noninterest expense categories, other than those specifically noted above, were $48.4 million in the second quarter of 2025, compared to $73.5 million in the second quarter of 2024, resulting in a year-over-year decrease of 34.1 percent. Primarily impacting the changes in other noninterest expense between the second quarter of 2025 and the comparable period in 2024 was the impact of the $28.4 million in fees paid in the second quarter of 2024 to terminate the resell agreement and professional fees incurred in connection with the capital optimization initiatives completed in the second quarter of 2024. "Revenue growth has been a focus for us since our founding almost 25 years ago," Carpenter said. "Second quarter revenues amounted to approximately $505.0 million, which was a 37.8 percent increase over the same period last year. Loan growth was the driver for net interest income growth as second quarter net interest income was 14.2 percent greater in the second quarter of 2025 than the same quarter last year. As anticipated, we did experience some margin expansion in the second quarter from the first quarter and expect continued expansion into the third quarter. We attribute margin expansion, in part, to our deliberate focus on prudently managing our funding costs in spite of meaningful growth in our interest earning asset base. "Noninterest income growth was another highlight for the quarter," Carpenter said. "Excluding the impact of a bond restructuring trade during the first quarter of 2025, we continued to see quarter-over-quarter growth in nearly every core banking fee category. We are particularly pleased with our efforts in commercial analysis and wealth management as we continue to experience strong growth in these strategically important areas. BHG had another sound quarter, providing $26.0 million in fee revenues to our firm in the second quarter of 2025, which was approximately $5.6 million higher than the first quarter of 2025 and $7.3 million higher than the second quarter of 2024." CAPITAL AND SOUNDNESS: As of June 30, 2025 December 31, 2024 June 30, 2024 Shareholders' equity to total assets 12.1 % 12.2 % 12.5 % Tangible common equity to tangible assets 8.6 % 8.6 % 8.6 % Book value per common share $ 82.79 $ 80.46 $ 77.15 Tangible book value per common share $ 58.70 $ 56.24 $ 52.92 Annualized net loan charge-offs to avg. loans (1) 0.20 % 0.24 % 0.27 % Nonperforming assets to total loans, ORE and other nonperforming assets (NPAs) 0.44 % 0.42 % 0.30 % Classified asset ratio (Pinnacle Bank) (2) 3.90 % 3.79 % 3.99 % Construction and land development loans as a percentage of total capital (3) 61.80 % 70.50 % 72.90 % Construction and land development, non-owner occupied commercial real estate and multi-family loans as a percentage of total capital (3) 228.60 % 242.20 % 254.00 % Allowance for credit losses (ACL) to total loans 1.14 % 1.17 % 1.13 % (1): Annualized net loan charge-offs to average loans ratios are computed by annualizing quarterly net loan charge-offs and dividing the result by average loans for the quarter. (2): Classified assets as a percentage of Tier 1 capital plus allowance for credit losses.. (3): Calculated using the same guidelines as are used in the Federal Financial Institutions Examination Council's Uniform Bank Performance Report. "We continue to be pleased with the overall soundness of our firm," Carpenter said. "Our capital ratios remain strong, and we have successfully reduced our concentration levels in commercial real estate. All the while, our tangible book value per share, which we believe is a key metric to creating shareholder value, continues to grow in an outsized way. All things considered, despite economic uncertainties and based on our differentiated model, we remain optimistic regarding our performance for the remainder of 2025." BOARD OF DIRECTORS DECLARES COMMON DIVIDENDS On July 15, 2025, Pinnacle Financial's Board of Directors approved a quarterly cash dividend of $0.24 per common share to be paid on Aug. 29, 2025 to common shareholders of record as of the close of business on Aug. 1, 2025. Additionally, Pinnacle's Board of Directors approved a quarterly cash dividend of approximately $3.8 million, or $16.88 per share (or $0.422 per depositary share), on Pinnacle Financial's 6.75 percent Series B Non-Cumulative Perpetual Preferred Stock payable on Sept. 1, 2025 to shareholders of record at the close of business on Aug. 17, 2025. The amount and timing of any future dividend payments to both preferred and common shareholders will be subject to the approval of Pinnacle's Board of Directors. WEBCAST AND CONFERENCE CALL INFORMATION Pinnacle will host a webcast and conference call at 8:30 a.m. CT on July 16, 2025, to discuss second quarter 2025 results and other matters. To access the call for audio only, please call 1-877-209-7255. For the presentation and streaming audio, please access the webcast on the investor relations page of Pinnacle's website at Pinnacle Financial Partners provides a full range of banking, investment, trust, mortgage and insurance products and services designed for businesses and their owners and individuals interested in a comprehensive relationship with their financial institution. The firm is the No. 1 bank in the Nashville-Murfreesboro-Franklin MSA, according to 2024 deposit data from the FDIC. Pinnacle is No. 9 on FORTUNE magazine's 2025 list of 100 Best Companies to Work For® in the U.S., its ninth consecutive appearance and was recognized by American Banker as one of America's Best Banks to Work For 12 years in a row and No. 1 among banks with more than $10 billion in assets in 2024. The firm began operations in a single location in downtown Nashville, TN in October 2000 and has since grown to approximately $54.8 billion in assets as of June 30, 2025. As the second-largest bank holding company headquartered in Tennessee, Pinnacle operates in several primarily urban markets across the Southeast. Additional information concerning Pinnacle, which is included in the Nasdaq Financial-100 Index, can be accessed at Forward-Looking Statements All statements, other than statements of historical fact, included in this press release, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "expect," "aim," "anticipate," "intend," "may," "should," "plan," "looking for," "believe," "seek," "estimate" and similar expressions are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, including, but not limited to: (i) deterioration in the financial condition of borrowers of Pinnacle Bank and its subsidiaries or BHG, including as a result of persistent elevated interest rates, the negative impact of inflationary pressures and challenging and uncertain economic conditions on our and BHG's customers and their businesses, resulting in significant increases in loan losses and provisions for those losses and, in the case of BHG, substitutions; (ii) fluctuations or differences in interest rates on loans or deposits from those that Pinnacle Financial is modeling or anticipating, including as a result of Pinnacle Bank's inability to better match deposit rates with the changes in the short-term rate environment, or that affect the yield curve; (iii) the impact of U.S. and global economic conditions, trade policies and tensions, including changes in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom, and geopolitical instability; (iv) the sale of investment securities in a loss position before their value recovers, including as a result of asset liability management strategies or in response to liquidity needs; (v) adverse conditions in the national or local economies including in Pinnacle Financial's markets throughout the Southeast region of the United States, particularly in commercial and residential real estate markets; (vi) the inability of Pinnacle Financial, or entities in which it has significant investments, like BHG, to maintain the long-term historical growth rate of its, or such entities', loan portfolio; (vii) the ability to grow and retain low-cost core deposits and retain large, uninsured deposits, including during times when Pinnacle Bank is seeking to limit the rates it pays on deposits or uncertainty exists in the financial services sector; (viii) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (ix) effectiveness of Pinnacle Financial's asset management activities in improving, resolving or liquidating lower-quality assets; (x) the impact of competition with other financial institutions, including pricing pressures and the resulting impact on Pinnacle Financial's results, including as a result of the negative impact to net interest margin from elevated deposit and other funding costs; (xi) the results of regulatory examinations of Pinnacle Financial, Pinnacle Bank or BHG, or companies with whom they do business; (xii) BHG's ability to profitably grow its business and successfully execute on its business plans; (xiii) risks of expansion into new geographic or product markets; (xiv) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including goodwill or other intangible assets; (xv) the ineffectiveness of Pinnacle Bank's hedging strategies, or the unexpected counterparty failure or hedge failure of the underlying hedges; (xvi) reduced ability to attract additional financial advisors (or failure of such advisors to cause their clients to switch to Pinnacle Bank), to retain financial advisors (including as a result of the competitive environment for associates) or otherwise to attract customers from other financial institutions; (xvii) deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xviii) inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies, required capital maintenance levels or regulatory requests or directives, particularly if Pinnacle Bank's level of applicable commercial real estate loans were to exceed percentage levels of total capital in guidelines recommended by its regulators; (xix) approval of the declaration of any dividend by Pinnacle Financial's board of directors; (xx) the vulnerability of Pinnacle Bank's network and online banking portals, and the systems of parties with whom Pinnacle Bank contracts, to unauthorized access, computer viruses, phishing schemes, spam or ransomware attacks, human error, natural disasters, power loss and other security breaches; (xxi) the possibility of increased compliance and operational costs as a result of increased regulatory oversight (including by the Consumer Financial Protection Bureau), including oversight of companies in which Pinnacle Financial or Pinnacle Bank have significant investments, like BHG, and the development of additional banking products for Pinnacle Bank's corporate and consumer clients; (xxii) Pinnacle Financial's ability to identify potential candidates for, consummate, and achieve synergies from, potential future acquisitions; (xxiii) difficulties and delays in integrating acquired businesses or fully realizing costs savings and other benefits from acquisitions; (xxiv) the risks associated with Pinnacle Bank being a minority investor in BHG, including the risk that the owners of a majority of the equity interests in BHG decide to sell the company or all or a portion of their ownership interests in BHG (triggering a similar sale by Pinnacle Bank); (xxv) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, like BHG, including regulatory or legislative developments; (xxvi) fluctuations in the valuations of Pinnacle Financial's equity investments and the ultimate success of such investments; (xxvii) the availability of and access to capital; (xxviii) adverse results (including costs, fines, reputational harm, inability to obtain necessary approvals and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions involving Pinnacle Financial, Pinnacle Bank or BHG; and (xxix) general competitive, economic, political and market conditions. Throughout this document, numbers may not foot due to rounding. Additional factors which could affect the forward looking statements can be found in Pinnacle Financial's Annual Report on Form 10-K for the year ended December 31, 2024, and subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC and available on the SEC's website at Pinnacle Financial disclaims any obligation to update or revise any forward-looking statements contained in this press release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise. Non-GAAP Financial Matters This release contains certain non-GAAP financial measures, including, without limitation, total revenues, net income to common shareholders, earnings per diluted common share, revenue per diluted common share, PPNR, efficiency ratio, noninterest expense, noninterest income and the ratio of noninterest expense to average assets, excluding in certain instances the impact of expenses related to other real estate owned, gains or losses on sale of investment securities, charges related to the FDIC special assessment, income associated with the recognition of a mortgage servicing asset in the first quarter of 2024, fees related to terminating an agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives in the second quarter of 2024 and other matters for the accounting periods presented. This release may also contain certain other non-GAAP capital ratios and performance measures that exclude the impact of goodwill and core deposit intangibles associated with Pinnacle Financial's acquisitions of BNC, Avenue Bank, Magna Bank, CapitalMark Bank & Trust, Mid-America Bancshares, Inc., Cavalry Bancorp, Inc. and other acquisitions which collectively are less material to the non-GAAP measure as well as the impact of Pinnacle Financial's Series B Preferred Stock. The presentation of the non-GAAP financial information is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. Because non-GAAP financial measures presented in this release are not measurements determined in accordance with GAAP and are susceptible to varying calculations, these non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures presented by other companies. Pinnacle Financial believes that these non-GAAP financial measures facilitate making period-to-period comparisons and are meaningful indications of its operating performance. In addition, because intangible assets such a...s goodwill and the core deposit intangible, and the other items excluded each vary extensively from company to company, Pinnacle Financial believes that the presentation of this information allows investors to more easily compare Pinnacle Financial's results to the results of other companies. Pinnacle Financial's management utilizes this non-GAAP financial information to compare Pinnacle Financial's operating performance for 2025 versus certain periods in 2024 and to internally prepared projections. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS – UNAUDITED (dollars in thousands, except for share and per share data) June 30, 2025 Dec. 31, 2024 June 30, 2024 ASSETS Cash and noninterest-bearing due from banks $ 370,926 $ 320,320 $ 219,110 Restricted cash 112,547 93,645 50,924 Interest-bearing due from banks 2,506,531 3,021,960 2,107,883 Cash and cash equivalents 2,990,004 3,435,925 2,377,917 Securities purchased with agreement to resell 93,293 66,449 71,903 Securities available-for-sale, at fair value 6,378,688 5,582,369 4,908,967 Securities held-to-maturity (fair value of $2.4 billion, $2.6 billion and $2.7 billion, net of allowance for credit losses of $1.7 million, $1.7 million, and $1.7 million at June 30, 2025, Dec. 31, 2024, and June 30, 2024, respectively) 2,687,963 2,798,899 2,973,924 Consumer loans held-for-sale 201,342 175,627 187,154 Commercial loans held-for-sale 10,251 19,700 16,046 Loans 37,105,164 35,485,776 33,769,150 Less allowance for credit losses (422,125 ) (414,494 ) (381,601 ) Loans, net 36,683,039 35,071,282 33,387,549 Premises and equipment, net 321,062 311,277 282,775 Equity method investment 380,982 436,707 433,073 Accrued interest receivable 219,395 214,080 220,232 Goodwill 1,848,904 1,849,260 1,846,973 Core deposits and other intangible assets 19,506 21,423 24,313 Other real estate owned 4,835 1,278 2,636 Other assets 2,962,187 2,605,173 2,633,507 Total assets $ 54,801,451 $ 52,589,449 $ 49,366,969 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Noninterest-bearing $ 8,640,759 $ 8,170,448 $ 7,932,882 Interest-bearing 14,301,168 14,125,194 12,600,723 Savings and money market accounts 17,116,882 16,197,397 14,437,407 Time 4,940,435 4,349,953 4,799,368 Total deposits 44,999,244 42,842,992 39,770,380 Securities sold under agreements to repurchase 258,454 230,244 220,885 Federal Home Loan Bank advances 1,775,470 1,874,134 2,110,885 Subordinated debt and other borrowings 426,263 425,821 425,380 Accrued interest payable 49,181 55,619 58,881 Other liabilities 655,602 728,758 605,890 Total liabilities 48,164,214 46,157,568 43,192,301 Preferred stock, no par value, 10.0 million shares authorized; 225,000 shares non-cumulative perpetual preferred stock, Series B, liquidation preference $225.0 million, issued and outstanding at June 30, 2025, Dec. 31, 2024, and June 30, 2024, respectively 217,126 217,126 217,126 Common stock, par value $1.00; 180.0 million shares authorized; 77.5 million, 77.2 million and 77.2 million shares issued and outstanding at June 30, 2025, Dec. 31, 2024, and June 30, 2024, respectively 77,548 77,242 77,217 Additional paid-in capital 3,131,498 3,129,680 3,110,993 Retained earnings 3,429,363 3,175,777 2,919,923 Accumulated other comprehensive loss, net of taxes (218,298 ) (167,944 ) (150,591 ) Total shareholders' equity 6,637,237 6,431,881 6,174,668 Total liabilities and shareholders' equity $ 54,801,451 $ 52,589,449 $ 49,366,969 This information is preliminary and based on company data available at the time of the presentation. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED (dollars in thousands, except for share and per share data) Three months ended Six months ended June 30, 2025 March 31, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Interest income: Loans, including fees $ 568,857 $ 547,368 $ 551,659 $ 1,116,225 $ 1,092,858 Securities Taxable 66,989 61,853 51,578 128,842 96,048 Tax-exempt 27,104 25,230 24,372 52,334 48,972 Federal funds sold and other 31,820 33,709 40,781 65,529 80,995 Total interest income 694,770 668,160 668,390 1,362,930 1,318,873 Interest expense: Deposits 284,614 273,393 304,449 558,007 605,417 Securities sold under agreements to repurchase 1,222 1,026 1,316 2,248 2,715 FHLB advances and other borrowings 29,401 29,313 30,363 58,714 60,445 Total interest expense 315,237 303,732 336,128 618,969 668,577 Net interest income 379,533 364,428 332,262 743,961 650,296 Provision for credit losses 24,245 16,960 30,159 41,205 64,656 Net interest income after provision for credit losses 355,288 347,468 302,103 702,756 585,640 Noninterest income: Service charges on deposit accounts 17,092 17,028 14,563 34,120 28,002 Investment services 19,324 18,817 15,720 38,141 30,471 Insurance sales commissions 3,693 4,674 3,715 8,367 7,567 Gains on mortgage loans sold, net 1,965 2,507 3,270 4,472 6,149 Investment losses on sales of securities, net — (12,512 ) (72,103 ) (12,512 ) (72,103 ) Trust fees 9,280 9,340 8,323 18,620 15,738 Income from equity method investment 26,027 20,405 18,688 46,432 34,723 Gain on sale of fixed assets 202 210 325 412 383 Other noninterest income 47,874 37,957 41,787 85,831 93,461 Total noninterest income 125,457 98,426 34,288 223,883 144,391 Noninterest expense: Salaries and employee benefits 181,246 172,089 150,117 353,335 296,127 Equipment and occupancy 48,043 46,180 41,036 94,223 80,682 Other real estate, net 137 58 22 195 106 Marketing and other business development 8,772 8,666 6,776 17,438 12,901 Postage and supplies 3,192 3,370 3,135 6,562 5,906 Amortization of intangibles 1,400 1,417 1,568 2,817 3,152 Other noninterest expense 43,656 43,707 68,735 87,363 114,880 Total noninterest expense 286,446 275,487 271,389 561,933 513,754 Income before income taxes 194,299 170,407 65,002 364,706 216,277 Income tax expense 35,759 29,999 11,840 65,758 39,171 Net income 158,540 140,408 53,162 298,948 177,106 Preferred stock dividends (3,798 ) (3,798 ) (3,798 ) (7,596 ) (7,596 ) Net income available to common shareholders $ 154,742 $ 136,610 $ 49,364 $ 291,352 $ 169,510 Per share information: Basic net income per common share $ 2.01 $ 1.78 $ 0.65 $ 3.79 $ 2.22 Diluted net income per common share $ 2.00 $ 1.77 $ 0.64 $ 3.77 $ 2.21 Weighted average common shares outstanding: Basic 76,891,035 76,726,545 76,506,121 76,809,244 76,392,287 Diluted 77,277,054 76,964,625 76,644,227 77,212,262 76,531,419 This information is preliminary and based on company data available at the time of the presentation. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY(Unaudited) (dollars and shares in thousands) Preferred Stock Amount Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comp. Income (Loss), net Total Shareholders' Equity Shares Amounts Balance at December 31, 2023 $ 217,126 76,767 $ 76,767 $ 3,109,493 $ 2,784,927 $ (152,525 ) $ 6,035,788 Preferred dividends paid ($33.76 per share) — — — — (7,596 ) — (7,596 ) Common dividends paid ($0.44 per share) — — — — (34,514 ) — (34,514 ) Issuance of restricted common shares — 212 212 (212 ) — — — Forfeiture of restricted common shares — (18 ) (18 ) 18 — — — Restricted shares withheld for taxes & related tax benefits — (55 ) (55 ) (4,529 ) — — (4,584 ) Issuance of common stock pursuant to restricted stock unit (RSU) and performance stock unit (PSU) agreements, net of shares withheld for taxes & related tax benefits — 311 311 (14,739 ) — — (14,428 ) Compensation expense for restricted shares, RSUs and PSUs — — — 20,962 — — 20,962 Net income — — — — 177,106 — 177,106 Other comprehensive gain — — — — — 1,934 1,934 Balance at June 30, 2024 $ 217,126 77,217 $ 77,217 $ 3,110,993 $ 2,919,923 $ (150,591 ) $ 6,174,668 Balance at December 31, 2024 $ 217,126 77,242 $ 77,242 $ 3,129,680 $ 3,175,777 $ (167,944 ) $ 6,431,881 Preferred dividends paid ($33.76 per share) — — — — (7,596 ) — (7,596 ) Common dividends paid ($0.48 per share) — — — — (37,766 ) — (37,766 ) Issuance of restricted common shares — 162 162 (162 ) — — — Forfeiture of restricted common shares — (21 ) (21 ) 21 — — — Restricted shares withheld for taxes & related tax benefits — (55 ) (55 ) (6,211 ) — — (6,266 ) Issuance of common stock pursuant to RSU and PSU agreements, net of shares withheld for taxes & related tax benefits — 220 220 (13,409 ) — — (13,189 ) Compensation expense for restricted shares, RSUs and PSUs — — — 21,579 — — 21,579 Net income — — — — 298,948 — 298,948 Other comprehensive loss — — — — — (50,354 ) (50,354 ) Balance at June 30, 2025 $ 217,126 77,548 $ 77,548 $ 3,131,498 $ 3,429,363 $ (218,298 ) $ 6,637,237 PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED (dollars in thousands) June March December September June March 2025 2025 2024 2024 2024 2024 Balance sheet data, at quarter end: Commercial and industrial loans $ 14,905,306 14,131,312 13,815,817 12,986,865 12,328,622 11,893,198 Commercial real estate - owner occupied loans 4,744,806 4,594,376 4,388,531 4,264,743 4,217,351 4,044,973 Commercial real estate - investment loans 5,891,694 5,977,583 5,931,420 5,919,235 5,998,326 6,138,711 Commercial real estate - multifamily and other loans 2,393,696 2,360,515 2,198,698 2,213,153 2,185,858 1,924,931 Consumer real estate - mortgage loans 5,163,761 4,977,358 4,914,482 4,907,766 4,874,846 4,828,416 Construction and land development loans 3,412,060 3,525,860 3,699,321 3,486,504 3,621,563 3,818,334 Consumer and other loans 593,841 569,742 537,507 530,044 542,584 514,310 Total loans 37,105,164 36,136,746 35,485,776 34,308,310 33,769,150 33,162,873 Allowance for credit losses (422,125 ) (417,462 ) (414,494 ) (391,534 ) (381,601 ) (371,337 ) Securities 9,066,651 8,718,794 8,381,268 8,293,241 7,882,891 7,371,847 Total assets 54,801,451 54,254,804 52,589,449 50,701,888 49,366,969 48,894,196 Noninterest-bearing deposits 8,640,759 8,507,351 8,170,448 8,229,394 7,932,882 7,958,739 Total deposits 44,999,244 44,479,463 42,842,992 40,954,888 39,770,380 39,402,025 Securities sold under agreements to repurchase 258,454 263,993 230,244 209,956 220,885 201,418 FHLB advances 1,775,470 1,886,011 1,874,134 2,146,395 2,110,885 2,116,417 Subordinated debt and other borrowings 426,263 426,042 425,821 425,600 425,380 425,159 Total shareholders' equity 6,637,237 6,543,142 6,431,881 6,344,258 6,174,668 6,103,851 Balance sheet data, quarterly averages: Total loans $ 36,967,754 36,041,530 34,980,900 34,081,759 33,516,804 33,041,954 Securities 8,986,542 8,679,934 8,268,583 8,176,250 7,322,588 7,307,201 Federal funds sold and other 2,854,113 2,958,593 3,153,751 2,601,267 3,268,307 3,274,062 Total earning assets 48,808,409 47,680,057 46,403,234 44,859,276 44,107,699 43,623,217 Total assets 53,824,500 52,525,831 51,166,643 49,535,543 48,754,091 48,311,260 Noninterest-bearing deposits 8,486,681 8,206,751 8,380,760 8,077,655 8,000,159 7,962,217 Total deposits 44,233,628 43,018,951 41,682,341 40,101,199 39,453,828 38,995,709 Securities sold under agreements to repurchase 255,662 230,745 223,162 230,340 213,252 210,888 FHLB advances 1,838,449 1,877,596 2,006,736 2,128,793 2,106,786 2,214,489 Subordinated debt and other borrowings 427,805 427,624 427,503 427,380 427,256 428,281 Total shareholders' equity 6,601,662 6,515,904 6,405,867 6,265,710 6,138,722 6,082,616 Statement of operations data, for the three months ended: Interest income $ 694,770 668,160 684,360 694,865 668,390 650,483 Interest expense 315,237 303,732 320,570 343,361 336,128 332,449 Net interest income 379,533 364,428 363,790 351,504 332,262 318,034 Provision for credit losses 24,245 16,960 29,652 26,281 30,159 34,497 Net interest income after provision for credit losses 355,288 347,468 334,138 325,223 302,103 283,537 Noninterest income 125,457 98,426 111,545 115,242 34,288 110,103 Noninterest expense 286,446 275,487 261,897 259,319 271,389 242,365 Income before income taxes 194,299 170,407 183,786 181,146 65,002 151,275 Income tax expense 35,759 29,999 32,527 34,455 11,840 27,331 Net income 158,540 140,408 151,259 146,691 53,162 123,944 Preferred stock dividends (3,798 ) (3,798 ) (3,798 ) (3,798 ) (3,798 ) (3,798 ) Net income available to common shareholders $ 154,742 136,610 147,461 142,893 49,364 120,146 Profitability and other ratios: Return on avg. assets (1) 1.15 % 1.05 % 1.15 % 1.15 % 0.41 % 1.00 % Return on avg. equity (1) 9.40 % 8.50 % 9.16 % 9.07 % 3.23 % 7.94 % Return on avg. common equity (1) 9.72 % 8.80 % 9.48 % 9.40 % 3.35 % 8.24 % Return on avg. tangible common equity (1) 13.75 % 12.51 % 13.58 % 13.61 % 4.90 % 12.11 % Common stock dividend payout ratio (14) 12.73 % 15.53 % 14.72 % 16.73 % 17.29 % 12.59 % Net interest margin (2) 3.23 % 3.21 % 3.22 % 3.22 % 3.14 % 3.04 % Noninterest income to total revenue (3) 24.84 % 21.27 % 23.47 % 24.69 % 9.35 % 25.72 % Noninterest income to avg. assets (1) 0.93 % 0.76 % 0.87 % 0.93 % 0.28 % 0.92 % Noninterest exp. to avg. assets (1) 2.13 % 2.13 % 2.04 % 2.08 % 2.24 % 2.02 % Efficiency ratio (4) 56.72 % 59.52 % 55.10 % 55.56 % 74.04 % 56.61 % Avg. loans to avg. deposits 83.57 % 83.78 % 83.92 % 84.99 % 84.95 % 84.73 % Securities to total assets 16.54 % 16.07 % 15.94 % 16.36 % 15.97 % 15.08 % This information is preliminary and based on company data available at the time of the presentation. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED (dollars in thousands) Three months ended Three months ended June 30, 2025 June 30, 2024 Average Balances Interest Rates/ Yields Average Balances Interest Rates/ Yields Interest-earning assets Loans (1) (2) $ 36,967,754 $ 568,857 6.26 % $ 33,516,804 $ 551,659 6.71 % Securities Taxable 5,625,309 66,989 4.78 % 4,085,859 51,578 5.08 % Tax-exempt (2) 3,361,233 27,104 3.87 % 3,236,729 24,372 3.61 % Interest-bearing due from banks 2,523,742 26,449 4.20 % 2,541,394 33,607 5.32 % Resell agreements 77,378 2,116 10.97 % 476,435 3,641 3.07 % Federal funds sold — — — % — — — % Other 252,993 3,255 5.16 % 250,478 3,533 5.67 % Total interest-earning assets 48,808,409 $ 694,770 5.82 % 44,107,699 $ 668,390 6.20 % Nonearning assets Intangible assets 1,869,405 1,872,282 Other nonearning assets 3,146,686 2,774,110 Total assets $ 53,824,500 $ 48,754,091 Interest-bearing liabilities Interest-bearing deposits: Interest checking 14,220,572 114,693 3.23 % 12,118,160 118,785 3.94 % Savings and money market 16,816,295 124,409 2.97 % 14,659,713 134,399 3.69 % Time 4,710,080 45,512 3.88 % 4,675,796 51,265 4.41 % Total interest-bearing deposits 35,746,947 284,614 3.19 % 31,453,669 304,449 3.89 % Securities sold under agreements to repurchase 255,662 1,222 1.92 % 213,252 1,316 2.48 % Federal Home Loan Bank advances 1,838,449 21,325 4.65 % 2,106,786 24,395 4.66 % Subordinated debt and other borrowings 427,805 8,076 7.57 % 427,256 5,968 5.62 % Total interest-bearing liabilities 38,268,863 315,237 3.30 % 34,200,963 336,128 3.95 % Noninterest-bearing deposits 8,486,681 — — 8,000,159 — — Total deposits and interest-bearing liabilities 46,755,544 $ 315,237 2.70 % 42,201,122 $ 336,128 3.20 % Other liabilities 467,294 414,247 Shareholders' equity 6,601,662 6,138,722 Total liabilities and shareholders' equity $ 53,824,500 $ 48,754,091 Net interest income $ 379,533 $ 332,262 Net interest spread (3) 2.52 % 2.25 % Net interest margin (4) 3.23 % 3.14 % (1) Average balances of nonperforming loans are included in the above amounts. (2) Yields computed on tax-exempt instruments on a tax equivalent basis and included $13.8 million of taxable equivalent income for the three months ended June 30, 2025 compared to $11.9 million for the three months ended June 30, 2024. The tax-exempt benefit has been reduced by the projected impact of tax-exempt income that will be disallowed pursuant to IRS Regulations as of and for the then current period presented. (3) Yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. The net interest spread calculation excludes the impact of demand deposits. Had the impact of demand deposits been included, the net interest spread for the three months ended June 30, 2025 would have been 3.12% compared to a net interest spread of 3.00% for the three months ended June 30, 2024. (4) Net interest margin is the result of annualized net interest income calculated on a tax equivalent basis divided by average interest-earning assets for the period. This information is preliminary and based on company data available at the time of the presentation. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED (dollars in thousands) Six months ended Six months ended June 30, 2025 June 30, 2024 Average Balances Interest Rates/ Yields Average Balances Interest Rates/ Yields Interest-earning assets Loans (1) (2) $ 36,507,201 $ 1,116,225 6.25 % $ 33,279,379 $ 1,092,858 6.69 % Securities Taxable 5,529,552 128,842 4.70 % 4,002,696 96,048 4.83 % Tax-exempt (2) 3,304,533 52,334 3.82 % 3,312,198 48,972 3.54 % Interest-bearing due from banks 2,584,209 55,342 4.32 % 2,509,097 66,359 5.32 % Resell agreements 67,945 3,751 11.13 % 510,111 7,499 2.96 % Federal funds sold — — — % — — — % Other 253,890 6,436 5.11 % 251,976 7,137 5.70 % Total interest-earning assets 48,247,330 $ 1,362,930 5.81 % 43,865,457 $ 1,318,873 6.15 % Nonearning assets Intangible assets 1,869,783 1,873,076 Other nonearning assets 3,061,641 2,794,141 Total assets $ 53,178,754 $ 48,532,674 Interest-bearing liabilities Interest-bearing deposits: Interest checking 14,178,740 226,444 3.22 % 11,842,966 231,513 3.93 % Savings and money market 16,581,963 243,251 2.96 % 14,634,200 269,151 3.70 % Time 4,521,453 88,312 3.94 % 4,766,414 104,753 4.42 % Total interest-bearing deposits 35,282,156 558,007 3.19 % 31,243,580 605,417 3.90 % Securities sold under agreements to repurchase 243,273 2,248 1.86 % 212,070 2,715 2.57 % Federal Home Loan Bank advances 1,857,914 42,596 4.62 % 2,160,637 48,515 4.52 % Subordinated debt and other borrowings 427,715 16,118 7.60 % 427,768 11,930 5.61 % Total interest-bearing liabilities 37,811,058 618,969 3.30 % 34,044,055 668,577 3.95 % Noninterest-bearing deposits 8,347,489 — — 7,981,188 — — Total deposits and interest-bearing liabilities 46,158,547 $ 618,969 2.70 % 42,025,243 $ 668,577 3.20 % Other liabilities 461,187 396,762 Shareholders' equity 6,559,020 6,110,669 Total liabilities and shareholders' equity $ 53,178,754 $ 48,532,674 Net interest income $ 743,961 $ 650,296 Net interest spread (3) 2.51 % 2.21 % Net interest margin (4) 3.22 % 3.09 % (1) Average balances of nonperforming loans are included in the above amounts. (2) Yields computed on tax-exempt instruments on a tax equivalent basis and included $26.3 million of taxable equivalent income for the six months ended June 30, 2025 compared to $23.7 million for the six months ended June 30, 2024. The tax-exempt benefit has been reduced by the projected impact of tax-exempt income that will be disallowed pursuant to IRS Regulations as of and for the then current period presented. (3) Yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. The net interest spread calculation excludes the impact of demand deposits. Had the impact of demand deposits been included, the net interest spread for the six months ended June 30, 2025 would have been 3.10% compared to a net interest spread of 2.96% for the six months ended June 30, 2024. (4) Net interest margin is the result of annualized net interest income calculated on a tax equivalent basis divided by average interest-earning assets for the period. This information is preliminary and based on company data available at the time of the presentation. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED (dollars in thousands) June March December September June March 2025 2025 2024 2024 2024 2024 Asset quality information and ratios: Nonperforming assets: Nonaccrual loans $ 157,170 171,570 147,825 119,293 97,649 108,325 ORE and other nonperforming assets (NPAs) 4,835 3,656 1,280 823 2,760 2,766 Total nonperforming assets $ 162,005 175,226 149,105 120,116 100,409 111,091 Past due loans over 90 days and still accruing interest $ 4,652 4,337 3,515 3,611 4,057 5,273 Accruing purchase credit deteriorated loans $ 10,344 12,215 13,877 5,715 6,021 6,222 Net loan charge-offs $ 18,737 13,992 20,807 18,348 22,895 16,215 Allowance for credit losses to nonaccrual loans 268.6 % 243.3 % 280.4 % 328.2 % 390.8 % 342.8 % As a percentage of total loans: Past due accruing loans over 30 days 0.14 % 0.14 % 0.15 % 0.16 % 0.16 % 0.17 % Potential problem loans 0.12 % 0.15 % 0.13 % 0.14 % 0.18 % 0.28 % Allowance for credit losses 1.14 % 1.16 % 1.17 % 1.14 % 1.13 % 1.12 % Nonperforming assets to total loans, ORE and other NPAs 0.44 % 0.48 % 0.42 % 0.35 % 0.30 % 0.33 % Classified asset ratio (Pinnacle Bank) (6) 3.9 % 4.4 % 3.8 % 3.9 % 4.0 % 4.9 % Annualized net loan charge-offs to avg. loans (5) 0.20 % 0.16 % 0.24 % 0.21 % 0.27 % 0.20 % Interest rates and yields: Loans 6.26 % 6.24 % 6.42 % 6.75 % 6.71 % 6.67 % Securities 4.44 % 4.30 % 4.27 % 4.58 % 4.43 % 4.06 % Total earning assets 5.82 % 5.79 % 5.97 % 6.27 % 6.20 % 6.11 % Total deposits, including non-interest bearing 2.58 % 2.58 % 2.74 % 3.08 % 3.10 % 3.10 % Securities sold under agreements to repurchase 1.92 % 1.80 % 2.11 % 2.58 % 2.48 % 2.67 % FHLB advances 4.65 % 4.59 % 4.59 % 4.66 % 4.66 % 4.38 % Subordinated debt and other borrowings 7.57 % 7.63 % 8.11 % 5.97 % 5.62 % 5.60 % Total deposits and interest-bearing liabilities 2.70 % 2.70 % 2.88 % 3.19 % 3.20 % 3.20 % Capital and other ratios (6): Pinnacle Financial ratios: Shareholders' equity to total assets 12.1 % 12.1 % 12.2 % 12.5 % 12.5 % 12.5 % Common equity Tier one 10.7 % 10.7 % 10.8 % 10.8 % 10.7 % 10.4 % Tier one risk-based 11.2 % 11.2 % 11.3 % 11.4 % 11.2 % 10.9 % Total risk-based 13.0 % 13.0 % 13.1 % 13.2 % 13.2 % 12.9 % Leverage 9.5 % 9.5 % 9.6 % 9.6 % 9.5 % 9.5 % Tangible common equity to tangible assets 8.6 % 8.5 % 8.6 % 8.7 % 8.6 % 8.5 % Pinnacle Bank ratios: Common equity Tier one 11.5 % 11.5 % 11.6 % 11.7 % 11.5 % 11.3 % Tier one risk-based 11.5 % 11.5 % 11.6 % 11.7 % 11.5 % 11.3 % Total risk-based 12.4 % 12.4 % 12.5 % 12.6 % 12.5 % 12.2 % Leverage 9.7 % 9.7 % 9.8 % 9.8 % 9.7 % 9.7 % Construction and land development loans as a percentage of total capital (17) 61.8 % 65.6 % 70.5 % 68.2 % 72.9 % 77.5 % Non-owner occupied commercial real estate and multi-family as a percentage of total capital (17) 228.6 % 236.4 % 242.2 % 243.3 % 254.0 % 258.0 % This information is preliminary and based on company data available at the time of the presentation. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED (dollars in thousands, except per share data) June March December September June March 2025 2025 2024 2024 2024 2024 Per share data: Earnings per common share – basic $ 2.01 1.78 1.93 1.87 0.65 1.58 Earnings per common share - basic, excluding non-GAAP adjustments $ 2.01 1.90 1.92 1.87 1.63 1.54 Earnings per common share – diluted $ 2.00 1.77 1.91 1.86 0.64 1.57 Earnings per common share - diluted, excluding non-GAAP adjustments $ 2.00 1.90 1.90 1.86 1.63 1.53 Common dividends per share $ 0.24 0.24 0.22 0.22 0.22 0.22 Book value per common share at quarter end (7) $ 82.79 81.57 80.46 79.33 77.15 76.23 Tangible book value per common share at quarter end (7) $ 58.70 57.47 56.24 55.12 52.92 51.98 Revenue per diluted common share $ 6.53 6.01 6.14 6.08 4.78 5.60 Revenue per diluted common share, excluding non-GAAP adjustments $ 6.53 6.18 6.14 6.08 5.72 5.45 Investor information: Closing sales price of common stock on last trading day of quarter $ 110.41 106.04 114.39 97.97 80.04 85.88 High closing sales price of common stock during quarter $ 111.51 126.15 129.87 100.56 84.70 91.82 Low closing sales price of common stock during quarter $ 87.19 99.42 92.95 76.97 74.62 79.26 Closing sales price of depositary shares on last trading day of quarter $ 23.91 24.10 24.23 24.39 23.25 23.62 High closing sales price of depositary shares during quarter $ 24.56 25.25 25.02 24.50 23.85 24.44 Low closing sales price of depositary shares during quarter $ 23.76 24.10 24.23 23.25 22.93 22.71 Other information: Residential mortgage loan sales: Gross loans sold $ 192,859 145,645 185,707 209,144 217,080 148,576 Gross fees (8) $ 4,068 3,761 4,360 4,974 5,368 3,540 Gross fees as a percentage of loans originated 2.11 % 2.58 % 2.35 % 2.38 % 2.47 % 2.38 % Net gain on residential mortgage loans sold $ 1,965 2,507 2,344 2,643 3,270 2,879 Investment gains (losses) on sales of securities, net (13) $ — (12,512 ) 249 — (72,103 ) — Brokerage account assets, at quarter end (9) $ 14,665,349 13,324,592 13,086,359 12,791,337 11,917,578 10,756,108 Trust account managed assets, at quarter end $ 7,664,867 7,293,630 7,061,868 6,830,323 6,443,916 6,297,887 Core deposits (10) $ 39,761,037 40,012,999 38,046,904 35,764,640 34,957,827 34,638,610 Core deposits to total funding (10) 83.8 % 85.0 % 83.9 % 81.8 % 82.2 % 82.2 % Risk-weighted assets $ 44,413,507 43,210,918 41,976,450 40,530,585 39,983,191 40,531,311 Number of offices 137 136 137 136 135 128 Total core deposits per office $ 290,227 294,213 277,715 262,975 258,947 270,614 Total assets per full-time equivalent employee $ 15,109 15,092 14,750 14,418 14,231 14,438 Annualized revenues per full-time equivalent employee $ 558.5 522.2 530.4 528.0 425.0 508.5 Annualized expenses per full-time equivalent employee $ 316.8 310.8 292.2 293.4 314.6 287.8 Number of employees (full-time equivalent) 3,627.0 3,595.0 3,565.5 3,516.5 3,469.0 3,386.5 Associate retention rate (11) 93.4 % 94.3 % 94.5 % 94.6 % 94.4 % 94.2 % This information is preliminary and based on company data available at the time of the presentation. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED Three months ended Six months ended (dollars in thousands, except per share data) June March June June June 2025 2025 2024 2025 2024 Net interest income $ 379,533 364,428 332,262 743,961 650,296 Noninterest income 125,457 98,426 34,288 223,883 144,391 Total revenues 504,990 462,854 366,550 967,844 794,687 Less: Investment losses on sales of securities, net — 12,512 72,103 12,512 72,103 Recognition of mortgage servicing asset — — — — (11,812 ) Total revenues excluding the impact of adjustments noted above $ 504,990 475,366 438,653 980,356 854,978 Noninterest expense $ 286,446 275,487 271,389 561,933 513,754 Less: ORE expense 137 58 22 195 106 FDIC special assessment — — — — 7,250 Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives — — 28,400 — 28,400 Noninterest expense excluding the impact of adjustments noted above $ 286,309 275,429 242,967 561,738 477,998 Pre-tax income $ 194,299 170,407 65,002 364,706 216,277 Provision for credit losses 24,245 16,960 30,159 41,205 64,656 Pre-tax pre-provision net revenue 218,544 187,367 95,161 405,911 280,933 Less: Adjustments noted above 137 12,570 100,525 12,707 96,047 Adjusted pre-tax pre-provision net revenue (12) $ 218,681 199,937 195,686 418,618 376,980 Noninterest income $ 125,457 98,426 34,288 223,883 144,391 Less: Adjustments noted above — 12,512 72,103 12,512 60,291 Noninterest income excluding the impact of adjustments noted above $ 125,457 110,938 106,391 236,395 204,682 Efficiency ratio (4) 56.72 % 59.52 % 74.04 % 58.06 % 64.65 % Less: Adjustments noted above (0.03 )% (1.58 )% (18.65 )% (0.76 )% (8.74 )% Efficiency ratio excluding adjustments noted above (4) 56.70 % 57.94 % 55.39 % 57.30 % 55.91 % Total average assets $ 53,824,500 52,525,831 48,754,091 53,178,754 48,532,674 Noninterest income to average assets (1) 0.93 % 0.76 % 0.28 % 0.85 % 0.60 % Less: Adjustments noted above — % 0.10 % 0.60 % 0.05 % 0.25 % Noninterest income (excluding adjustments noted above) to average assets (1) 0.93 % 0.86 % 0.88 % 0.90 % 0.85 % Noninterest expense to average assets (1) 2.13 % 2.13 % 2.24 % 2.13 % 2.13 % Less: Adjustments as noted above — % — % (0.24 )% — % (0.15 )% Noninterest expense (excluding adjustments noted above) to average assets (1) 2.13 % 2.13 % 2.00 % 2.13 % 1.98 % This information is preliminary and based on company data available at the time of the presentation. Numbers may not foot due to rounding. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED Three months ended (dollars in thousands, except per share data) June March December September June March 2025 2025 2024 2024 2024 2024 Net income available to common shareholders $ 154,742 136,610 147,461 142,893 49,364 120,146 Investment (gains) losses on sales of securities, net — 12,512 (249 ) — 72,103 — Loss on BOLI restructuring — — — — — — ORE expense 137 58 58 56 22 84 FDIC special assessment — — — — — 7,250 Recognition of mortgage servicing asset — — — — — (11,812 ) Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives — — — — 28,400 — Tax effect on above noted adjustments (16) (34 ) (3,143 ) 48 (14 ) (25,131 ) 1,120 Net income available to common shareholders excluding adjustments noted above $ 154,844 146,037 147,318 142,935 124,758 116,788 Basic earnings per common share $ 2.01 1.78 1.93 1.87 0.65 1.58 Less: Investment (gains) losses on sales of securities, net — 0.16 (0.01 ) — 0.94 — ORE expense — — — — — — FDIC special assessment — — — — — 0.10 Recognition of mortgage servicing asset — — — — — (0.15 ) Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives — — — — 0.37 — Tax effect on above noted adjustments (16) — (0.04 ) — — (0.33 ) 0.01 Basic earnings per common share excluding adjustments noted above $ 2.01 1.90 1.92 1.87 1.63 1.54 Diluted earnings per common share $ 2.00 1.77 1.91 1.86 0.64 1.57 Less: Investment (gains) losses on sales of securities, net — 0.16 (0.01 ) — 0.94 — ORE expense — — — — — — FDIC special assessment — — — — — 0.10 Recognition of mortgage servicing asset — — — — — (0.15 ) Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives — — — — 0.37 — Tax effect on above noted adjustments (16) — (0.04 ) — (0.32 ) 0.01 Diluted earnings per common share excluding the adjustments noted above $ 2.00 1.90 1.90 1.86 1.63 1.53 Revenue per diluted common share $ 6.53 6.01 6.14 6.08 4.78 5.60 Adjustments due to revenue-impacting items as noted above — 0.16 — — 0.94 (0.15 ) Revenue per diluted common share excluding adjustments due to revenue-impacting items as noted above $ 6.53 6.18 6.14 6.08 5.72 5.45 Book value per common share at quarter end (7) $ 82.79 81.57 80.46 79.33 77.15 76.23 Adjustment due to goodwill, core deposit and other intangible assets (24.09 ) (24.10 ) (24.22 ) (24.21 ) (24.23 ) (24.25 ) Tangible book value per common share at quarter end (7) $ 58.70 57.47 56.24 55.12 52.92 51.98 Equity method investment (15) Fee income from BHG, net of amortization $ 26,027 20,405 12,070 16,379 18,688 16,035 Funding cost to support investment 5,205 5,515 4,869 5,762 5,704 5,974 Pre-tax impact of BHG 20,822 14,890 7,201 10,617 12,984 10,061 Income tax expense at statutory rates (16) 5,206 3,723 1,800 2,654 3,246 2,515 Earnings attributable to BHG $ 15,617 11,168 5,401 7,963 9,738 7,546 Basic earnings per common share attributable to BHG $ 0.20 0.15 0.07 0.10 0.13 0.10 Diluted earnings per common share attributable to BHG $ 0.20 0.15 0.07 0.10 0.13 0.10 This information is preliminary and based on company data available at the time of the presentation. Numbers may not foot due to rounding. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED Six months ended (dollars in thousands, except per share data) June 30, 2025 2024 Net income available to common shareholders $ 291,352 169,510 Investment losses on sales of securities, net 12,512 72,103 ORE expense 195 106 FDIC special assessment — 7,250 Recognition of mortgage servicing asset — (11,812 ) Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives — 28,400 Tax effect on adjustments noted above (16) (3,177 ) (24,012 ) Net income available to common shareholders excluding adjustments noted above $ 300,882 241,545 Basic earnings per common share $ 3.79 2.22 Less: Investment losses on sales of securities, net 0.16 0.94 ORE expense — — FDIC special assessment — 0.09 Recognition of mortgage servicing asset — (0.15 ) Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives — 0.37 Tax effect on above noted adjustments (16) (0.04 ) (0.31 ) Basic earnings per common share excluding adjustments noted above $ 3.92 3.16 Diluted earnings per common share 3.77 2.21 Less: Investment losses on sales of securities, net 0.16 0.94 ORE expense — — FDIC special assessment — 0.09 Recognition of mortgage servicing asset — (0.15 ) Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives — 0.37 Tax effect on above noted adjustments (16) (0.04 ) (0.31 ) Diluted earnings per common share excluding the adjustments noted above $ 3.90 3.16 Revenue per diluted common share $ 12.53 10.38 Adjustments due to revenue-impacting items as noted above 0.16 0.79 Revenue per diluted common share excluding adjustments due to revenue-impacting items noted above $ 12.70 11.17 Equity method investment (15) Fee income from BHG, net of amortization $ 46,432 34,723 Funding cost to support investment 10,720 11,584 Pre-tax impact of BHG 35,712 23,139 Income tax expense at statutory rates (16) 8,928 5,785 Earnings attributable to BHG $ 26,784 17,354 Basic earnings per common share attributable to BHG $ 0.35 0.23 Diluted earnings per common share attributable to BHG $ 0.35 0.23 This information is preliminary and based on company data available at the time of the presentation. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED Three months ended Six months ended (dollars in thousands, except per share data) June March June June June 2025 2025 2024 2025 2024 Return on average assets (1) 1.15 % 1.05 % 0.41 % 1.10 % 0.70 % Adjustments as noted above — % 0.07 % 0.62 % 0.04 % 0.30 % Return on average assets excluding adjustments noted above (1) 1.15 % 1.13 % 1.03 % 1.14 % 1.00 % Tangible assets: Total assets $ 54,801,451 54,254,804 49,366,969 $ 54,801,451 49,366,969 Less: Goodwill (1,848,904 ) (1,849,260 ) (1,846,973 ) (1,848,904 ) (1,846,973 ) Core deposit and other intangible assets (19,506 ) (20,007 ) (24,313 ) (19,506 ) (24,313 ) Net tangible assets $ 52,933,041 52,385,537 47,495,683 $ 52,933,041 47,495,683 Tangible common equity: Total shareholders' equity $ 6,637,237 6,543,142 6,174,668 $ 6,637,237 6,174,668 Less: Preferred shareholders' equity (217,126 ) (217,126 ) (217,126 ) (217,126 ) (217,126 ) Total common shareholders' equity 6,420,111 6,326,016 5,957,542 6,420,111 5,957,542 Less: Goodwill (1,848,904 ) (1,849,260 ) (1,846,973 ) (1,848,904 ) (1,846,973 ) Core deposit and other intangible assets (19,506 ) (20,007 ) (24,313 ) (19,506 ) (24,313 ) Net tangible common equity $ 4,551,701 4,456,749 4,086,256 $ 4,551,701 4,086,256 Ratio of tangible common equity to tangible assets 8.60 % 8.51 % 8.60 % 8.60 % 8.60 % Average tangible assets: Average assets $ 53,824,500 52,525,831 48,754,091 $ 53,178,754 48,532,674 Less: Average goodwill (1,849,255 ) (1,849,260 ) (1,846,973 ) (1,849,258 ) (1,846,973 ) Average core deposit and other intangible assets (20,150 ) (20,905 ) (25,309 ) (20,525 ) (26,103 ) Net average tangible assets $ 51,955,095 50,655,666 46,881,809 $ 51,308,971 46,659,598 Return on average assets (1) 1.15 % 1.05 % 0.41 % 1.10 % 0.70 % Adjustment due to goodwill, core deposit and other intangible assets 0.04 % 0.04 % 0.01 % 0.04 % 0.03 % Return on average tangible assets (1) 1.19 % 1.09 % 0.42 % 1.15 % 0.73 % Adjustments as noted above — % 0.08 % 0.65 % 0.04 % 0.31 % Return on average tangible assets excluding adjustments noted above (1) 1.20 % 1.17 % 1.07 % 1.18 % 1.04 % Average tangible common equity: Average shareholders' equity $ 6,601,662 6,515,904 6,138,722 $ 6,559,020 6,110,669 Less: Average preferred equity (217,126 ) (217,126 ) (217,126 ) (217,126 ) (217,126 ) Average common equity 6,384,536 6,298,778 5,921,596 6,341,894 5,893,543 Less: Average goodwill (1,849,255 ) (1,849,260 ) (1,846,973 ) (1,849,258 ) (1,846,973 ) Average core deposit and other intangible assets (20,150 ) (20,905 ) (25,309 ) (20,525 ) (26,103 ) Net average tangible common equity $ 4,515,131 4,428,613 4,049,314 $ 4,472,111 4,020,467 Return on average equity (1) 9.40 % 8.50 % 3.23 % 8.96 % 5.58 % Adjustment due to average preferred shareholders' equity 0.32 % 0.29 % 0.12 % 0.31 % 0.20 % Return on average common equity (1) 9.72 % 8.80 % 3.35 % 9.26 % 5.78 % Adjustment due to goodwill, core deposit and other intangible assets 4.02 % 3.71 % 1.55 % 3.87 % 2.70 % Return on average tangible common equity (1) 13.75 % 12.51 % 4.90 % 13.14 % 8.48 % Adjustments as noted above 0.01 % 0.86 % 7.49 % 0.43 % 3.60 % Return on average tangible common equity excluding adjustments noted above (1) 13.76 % 13.37 % 12.39 % 13.57 % 12.08 % This information is preliminary and based on company data available at the time of the presentation. Numbers may not foot due to rounding. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED 1. Ratios are presented on an annualized basis. 2. Net interest margin is the result of net interest income on a tax equivalent basis divided by average interest earning assets. 3. Total revenue is equal to the sum of net interest income and noninterest income. 4. Efficiency ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income. 5. Annualized net loan charge-offs to average loans ratios are computed by annualizing quarter-to-date net loan charge-offs and dividing the result by average loans for the quarter-to-date period. 6. Capital ratios are calculated using regulatory reporting regulations enacted for such period and are defined as follows: Equity to total assets – End of period total shareholders' equity as a percentage of end of period assets. Tangible common equity to tangible assets – End of period total shareholders' equity less end of period preferred stock, goodwill, core deposit and other intangibles as a percentage of end of period assets less end of period goodwill, core deposit and other intangibles. Leverage – Tier I capital (pursuant to risk-based capital guidelines) as a percentage of adjusted average assets. Tier I risk-based – Tier I capital (pursuant to risk-based capital guidelines) as a percentage of total risk-weighted assets. Total risk-based – Total capital (pursuant to risk-based capital guidelines) as a percentage of total risk-weighted assets. Classified asset – Classified assets as a percentage of Tier 1 capital plus allowance for credit losses. Tier I common equity to risk weighted assets – Tier 1 capital (pursuant to risk-based capital guidelines) less the amount of any preferred stock or subordinated indebtedness that is considered as a component of Tier 1 capital as a percentage of total risk-weighted assets. 7. Book value per common share computed by dividing total common shareholders' equity by common shares outstanding. Tangible book value per common share computed by dividing total common shareholders' equity, less goodwill, core deposit and other intangibles, by common shares outstanding. 8. Amounts are included in the statement of income in "Gains on mortgage loans sold, net", net of commissions paid on such amounts. 9. At fair value, based on information obtained from Pinnacle's third party broker/dealer for non-FDIC insured financial products and services. 10. Core deposits include all transaction deposit accounts, money market and savings accounts and all certificates of deposit issued in a denomination of less than $250,000. The ratio noted above represents total core deposits divided by total funding, which includes total deposits, FHLB advances, securities sold under agreements to repurchase, subordinated indebtedness and all other interest-bearing liabilities. 11. Associate retention rate is computed by dividing the number of associates employed at quarter end less the number of associates that have resigned in the last 12 months by the number of associates employed at quarter end. 12. Adjusted pre-tax, pre-provision net revenue excludes the impact of ORE expenses and income, investment gains and losses on sales of securities, the impact of the FDIC special assessment, the recognition of the mortgage servicing asset and fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives. 13. Represents investment gains (losses) on sales and impairments, net occurring as a result of gains or losses incurred as the result of a change in management's intention to sell a bond prior to the recovery of its amortized cost basis. 14. The dividend payout ratio is calculated as the sum of the annualized dividend rate for dividends paid on common shares divided by the trailing 12-months fully diluted earnings per common share as of the dividend declaration date. 15. Earnings from equity method investment includes the impact of the funding costs of the overall franchise calculated using the firm's subordinated and other borrowing rates. Income tax expense is calculated using statutory tax rates. 16. Tax effect calculated using the blended statutory rate of 25.00 percent for all periods. 17. Calculated using the same guidelines as are used in the Federal Financial Institutions Examination Council's Uniform Bank Performance Report. pnfp-earnings View source version on Contacts MEDIA CONTACT: Joe Bass, 615-743-8219FINANCIAL CONTACT: Harold Carpenter, 615-744-3742 WEBSITE: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Yum (YUM) is an Incredible Growth Stock: 3 Reasons Why
Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task. In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end. However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects. Yum Brands (YUM) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank. Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better. While there are numerous reasons why the stock of this parent company of KFC, Taco Bell and Pizza Hut is a great growth pick right now, we have highlighted three of the most important factors below: Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration. While the historical EPS growth rate for Yum is 9.9%, investors should actually focus on the projected growth. The company's EPS is expected to grow 9.7% this year, crushing the industry average, which calls for EPS growth of 6.6%. Asset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric exhibits how efficiently a firm is utilizing its assets to generate sales. Right now, Yum has an S/TA ratio of 1.18, which means that the company gets $1.18 in sales for each dollar in assets. Comparing this to the industry average of 0.97, it can be said that the company is more efficient. While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Yum is well positioned from a sales growth perspective too. The company's sales are expected to grow 6.8% this year versus the industry average of 2.5%. Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements. The current-year earnings estimates for Yum have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.1% over the past month. Yum has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. This combination indicates that Yum is a potential outperformer and a solid choice for growth investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Yum! Brands, Inc. (YUM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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3 Reasons Why Growth Investors Shouldn't Overlook Yum China (YUMC)
Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock. That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss. However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks. Yum China Holdings (YUMC) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank. Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). Here are three of the most important factors that make the stock of this restaurant operator in China a great growth pick right now. Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration. While the historical EPS growth rate for Yum China is 12.2%, investors should actually focus on the projected growth. The company's EPS is expected to grow 6.8% this year, crushing the industry average, which calls for EPS growth of 6.6%. Growth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric exhibits how efficiently a firm is utilizing its assets to generate sales. Right now, Yum China has an S/TA ratio of 1, which means that the company gets $1 in sales for each dollar in assets. Comparing this to the industry average of 0.97, it can be said that the company is more efficient. While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Yum China looks attractive from a sales growth perspective as well. The company's sales are expected to grow 2.7% this year versus the industry average of 2.5%. Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements. The current-year earnings estimates for Yum China have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.1% over the past month. Yum China has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. This combination positions Yum China well for outperformance, so growth investors may want to bet on it. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Yum China (YUMC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
3 Reasons Why Growth Investors Shouldn't Overlook Andritz (ADRZY)
Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock. In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end. However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects. Andritz (ADRZY) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank. Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). Here are three of the most important factors that make the stock of this company a great growth pick right now. Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration. While the historical EPS growth rate for Andritz is 24.4%, investors should actually focus on the projected growth. The company's EPS is expected to grow 11% this year, crushing the industry average, which calls for EPS growth of 10.2%. Growth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric exhibits how efficiently a firm is utilizing its assets to generate sales. Right now, Andritz has an S/TA ratio of 1.01, which means that the company gets $1.01 in sales for each dollar in assets. Comparing this to the industry average of 0.89, it can be said that the company is more efficient. While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Andritz looks attractive from a sales growth perspective as well. The company's sales are expected to grow 2.9% this year versus the industry average of 2.6%. Beyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements. There have been upward revisions in current-year earnings estimates for Andritz. The Zacks Consensus Estimate for the current year has surged 2.5% over the past month. Andritz has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. This combination indicates that Andritz is a potential outperformer and a solid choice for growth investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Andritz (ADRZY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Rachel Reeves plans boost for savers with cash in low-interest accounts
Savers with cash languishing in low-interest bank accounts are set to be inundated with offers to invest their money in stocks and shares under new government plans to encourage greater financial growth. Banks will be required to send customers details of potential investment opportunities, and a large-scale advertising campaign will be launched to raise awareness of the benefits of investing over saving. According to the Treasury, based on current trends, if savers were to move just £2,000 from a low-interest account into stocks and shares, millions of people could see an increase of more than £9,000 over the next 20 years. Chancellor Rachel Reeves, speaking in Leeds ahead of her Mansion House speech to City leaders, said: "We need to double down on our global strengths to put the UK ahead in the global race for financial businesses, creating good skilled jobs in every part of the country and helping savers' money go further. Read more: Best cash-saving accounts as markets bet on interest rate cut The government's plan comes as an estimated 29 million UK adults hold cash in accounts that offer interest rates as low as 1%. Over the past decade, the average return for stocks and shares has been around 9%. The Treasury's figures suggest that a £2,000 investment today could grow to £12,000 over 20 years, compared to just £2,700 if it remained in a cash account offering 1.5% interest. This highlights a potential £9,000 difference for savers willing to switch. For savers who are cautious about tax, the government allows up to £20,000 a year in tax-free savings and investments within an individual savings account (ISA). The Treasury is pushing to incentivise further investing by making it more accessible and promoting higher returns for savers. However, with higher returns come higher risks. Historically, many savers have been reluctant to invest due to concerns over the fluctuating value of investments. In response, the Treasury has suggested that specific risk warnings on investment products might be revised. It said there would be a "review of risk warnings on investment products to make sure they help people to accurately judge risk levels". An industry-led advertising campaign will explain the benefits of investing. From April 2026, the Financial Conduct Authority (FCA) will introduce Targeted Support, enabling banks to alert customers about specific investment opportunities. This will help shift money from low-return current accounts to higher-performing stocks and shares investments. Read more: First-time buyers on £30k salary now able to apply for mortgage Economic secretary to the Treasury, Emma Reynolds said: "Helping people take advantage of better returns from investing is key to better financial health, giving them a stake in a growing economy and connecting promising businesses with capital. These reforms will make the UK the best location for financial services firms and tear down barriers to investment to growing our economy and making families better off.' As part of the government's broader reform package, the Treasury also announced plans to allow long term asset funds (LTAFs) to be held in stocks and shares ISAs starting next year. This would enable individuals to invest in assets like innovative businesses and infrastructure projects, further diversifying investment options for UK savers. The government has stated that it will 'continue to consider reforms to ISAs and savings' to find the right balance between cash savings and investment, ultimately boosting both individual financial growth and the UK economy. With these plans, the government hopes to encourage a shift from traditional savings towards investments that will benefit the wider economy, creating more opportunities for growth and financial security in the long term. However, critics warn that while the initiative aims to provide higher returns, it may expose more people to the risks associated with investing. Read more: FTSE 100 LIVE: London heads near all-time highs as EU readies for US tariffs Reeves is also pledging to cut red tape, in a push to attract investment and drive growth. Under the 'Leeds' reforms just announced, 'unnecessary financial red tape' will be 'drastically cut', the Treasury said. "A new concierge service within the Office for Investment will harness UK networks globally to actively court international financial services companies, creating a one-stop-shop to promote the UK and provide tailored support to help businesses plan where to invest based on their needs – better harnessing specialist clusters across the country from asset management in Edinburgh, to Fintech in Leeds and Cardiff, and insurance in Norwich and Norfolk."Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
