Pinnacle Financial reports Q3 EPS $1.79, consensus $1.71

Reports Q3 revenue $408.0M, consensus $421.8M. Reports adjusted PPNR $204.6M vs. $211.0M last year and net interest margin of 3.06% vs. 3.47% last year. “As we entered the third quarter, we expected three important deposit related trends to materialize for our firm,” Turner said. “First, we believed that we would continue to grow our core deposit base more rapidly than peers. Our core deposits increased by 10.1 percent linked-quarter annualized in the third quarter, which we believe is exceptional in this environment. Second, we also believed the rate of decrease in noninterest bearing deposits should begin to subside, which it has. Demand deposit contraction in the third quarter was only $112.5 million, compared to $581.6 million and $794.3 million in the second and first quarters of 2023, respectively. And third, we expected the rate of increase in our overall deposit costs would lessen, which it did, having increased by 40 basis points in the third quarter, compared to 49 basis points and 63 basis points in the second and first quarters, respectively. We are pleased to see these three critical trends improve during the third quarter and are optimistic about continued improvement as we enter the fourth quarter of 2023.”