Curious about Pinnacle Financial Partners net worth? We’ll break down the latest numbers, from its market cap to total assets and revenue growth.
Learn how the bank has expanded in key U.S. markets. Let’s dive into the details with expert insights from Ando Money.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Pinnacle Financial Partners |
| Full Name | Pinnacle Financial Partners, Inc. |
| Traded as | NASDAQ: PNFP |
| ISIN | US72346Q1040 |
| Founded | February 20, 2000 |
| Founders | M. Terry Turner, Rob McCabe, Hugh Queener |
| Country/Territory | United States |
| Headquarters | Nashville, Tennessee |
| Chief Executive Officer | M. Terry Turner |
| Number of Employees | 2,297 (as of 2018) |
| Market Cap | $7.58 billion (September 2024) |
| Total Assets | $48.9 billion (March 2024) |
| Total Equity | $6.1 billion (March 2024) |
| Revenue | $428.1 million (Q1 2024) |
| Net Income | $120.1 million (Q1 2024) |
What is the Net Worth/ Market Cap Of Pinnacle Financial Partners in 2024?
As of September 2024, Pinnacle Financial Partners boasts a market cap of $7.58 billion.
This places it among significant players in the financial sector, though it operates within a competitive landscape.
When compared to some of the largest banks globally, Pinnacle Financial’s [estimated] market cap showcases its solid growth, especially in key Southeastern U.S. markets.
Some other banks related to Pinnacle Financial Partners include:
- Wells Fargo
- Bank of America
- JPMorgan Chase
- Truist Financial
- PNC Financial Services
- Regions Financial
- First Horizon Bank
- Fifth Third Bank
- KeyCorp
Financial Performance Overview
The Impact of Asset Growth on Financial Strength
Pinnacle Financial’s assets continue to rise, reaching $48.9 billion as of March 2024.
This growth is primarily driven by its robust loan portfolio, which grew by 6.0% year-over-year, reflecting the bank’s strategic focus on expanding its commercial loans and securities.
Additionally, other interest-earning assets, including consumer loans and real estate loans, contributed to this upward trend.
The firm’s expanding presence in states like Tennessee, North Carolina, and Georgia has boosted its asset growth.
The combination of asset growth and strategic expansions in urban markets has placed Pinnacle in a favorable financial position to continue driving its net worth upward.
Revenue Streams and Their Role in Financial Performance
Pinnacle Financial derives its revenue from various financial services. Its net interest income remains the largest contributor, at $318 million for Q1 2024.
This reflects a year-over-year growth rate of 1.9%, a key metric that underlines Pinnacle’s ability to generate consistent revenue.
Non-interest income, which includes wealth management, insurance services, and mortgage lending, reached $110.1 million, growing by 23.0% from the previous year.
The firm’s association with Bankers Healthcare Group (BHG) has also been instrumental, generating $16 million in Q1 2024.
However, BHG’s loan originations slightly dipped compared to the previous quarter, but the company’s securitizations and other income streams helped sustain overall revenue growth.
This diversified revenue approach ensures that Pinnacle maintains resilience despite market fluctuations, securing its foothold in a competitive industry.
Loan Portfolio and Financial Health
At the heart of Pinnacle’s financial strength is its loan portfolio, which totaled $33.16 billion by March 2024. This portfolio is diversified across commercial real estate, industrial loans, and consumer mortgages.
Specifically, the bank saw notable growth in its commercial and industrial loan segments, which contributed over 46% to the quarterly loan growth.
This loan performance is closely monitored to mitigate risks. In 2024, Pinnacle increased its credit loss allowance to 1.12%, signaling its cautious approach to potential economic downturns and borrower defaults.
Despite these provisions, the loan quality remains strong, supporting Pinnacle’s ongoing stability.
Deposit Growth and Liquidity
Pinnacle Financial’s deposits reached $39.4 billion in Q1 2024. The growth of both non-interest-bearing deposits (up 2.6% compared to Q4 2023) and interest-bearing core deposits contributed significantly to the bank’s overall liquidity.
The bank has been able to maintain a competitive edge in deposit acquisition, especially in key Southeastern markets, while managing the effects of inflation on customer savings behavior.
On-balance sheet liquidity stood at $7.6 billion, reflecting a robust liquidity position that positions the bank well for future loan growth and financial commitments.
This liquidity, derived from a mix of cash, cash equivalents, and unpledged securities, ensures that Pinnacle can support its lending ambitions and growth in the coming quarters.
FDIC Assessments and Credit Loss Provisions
Pinnacle Financial faced FDIC special assessments in Q1 2024, amounting to $7.3 million.
This is in line with regulatory requirements, ensuring that the bank is prepared for any potential systemic risks in the financial sector.
In addition to these assessments, the bank has bolstered its credit loss provisions to hedge against economic uncertainties, especially in light of the “higher-for-longer” interest rate environment.
These provisions, though necessary for financial health, have a short-term impact on profitability. However, they highlight Pinnacle’s commitment to responsible risk management, ensuring long-term stability for both investors and customers.
Tangible Book Value and Shareholder Confidence
Pinnacle’s tangible book value reached $51.98 per share by Q1 2024, showing an upward trajectory that reflects increasing asset quality and financial strength.
This metric is crucial for shareholder confidence, as it provides insight into the intrinsic value of the bank, separate from market fluctuations. Investors have taken note, as reflected in the firm’s growing stock price and market capitalization.
By focusing on enhancing tangible book value, Pinnacle is ensuring that it delivers strong returns to shareholders, even in a challenging economic climate.
Southeast U.S. Market Expansion
Pinnacle continues to capitalize on its stronghold in the Southeast U.S., particularly in Tennessee, North Carolina, and expanding into Atlanta and Washington D.C. markets.
These regions represent some of the most lucrative banking markets, with high demand for commercial lending, real estate investments, and wealth management services.
FAQs about Pinnacle Financial Partners
What is Pinnacle Financial Partners?
Pinnacle Financial Partners is a bank based in Nashville, Tennessee. It offers commercial banking, wealth management, and mortgage services across the Southeast.
Where is it located?
The bank’s headquarters are in Nashville, Tennessee. It operates across states like Tennessee, North Carolina, Georgia, and South Carolina.
Who founded Pinnacle Financial Partners?
The bank was founded in 2000 by a team of financial professionals. Their goal was to create a locally-owned institution with a strong customer focus.
What services does it provide?
It offers:
- Commercial banking
- Wealth management
- Trust services
- Mortgage lending
- Insurance services
How does it perform financially?
By March 2024, the bank reported total assets of $48.9 billion. Its total revenue for the first quarter of 2024 was $428.1 million, with a net income of $120.1 million.
How has it grown?
The bank has expanded through acquisitions like BNC Bancorp. It continues to grow in the Southeastern U.S., focusing on commercial and retail banking.
Who is the CEO of Pinnacle Financial Partners?
Its Chief Executive Officer is a founding member, driving the bank’s strategic growth.
What is its loan portfolio?
As of March 2024, the loan portfolio stands at $33.16 billion, focused on commercial and industrial loans.
What makes it unique?
The bank emphasizes a relationship-driven model. It’s known for being one of Fortune’s 100 Best Companies to Work For, focusing on a positive work environment.
Conclusion
Pinnacle Financial Partners continues to grow its assets and market share.
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