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PNFP, Pinnacle Financial Partners
Pinnacle Financial 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.
Pinnacle is an employer of choice for financial services professionals.
Pinnacle Bank owns a 49 percent interest in Bankers Healthcare Group ("BHG"), which provides innovative, hassle-free financial solutions to healthcare practitioners and other professionals, among other borrowers.
The business
What it sells, where the money comes from, the kind of company it is.
Next report By 11/8 · the 10-Q for the quarter ended late September · due within 40 days of period end · has filed ~36 days after · the wire records it on arrival
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What moves the needle
- Net interest margin, loan losses, and book value. A lender is read on the quality of its balance sheet, not an earnings multiple, and the worst year of credit losses matters more than the best. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Return on equity has sat below the cost of equity (median 9%, above 12% in only 0 of 3 years). It runs at a 57% efficiency ratio, lean. The cycle and the loan book decide this one; weigh the recession years in the record, not the average, and read the 10-K.
Every line is arithmetic on the company's filings, shown in full in the sections below.
The record
Ten years of arithmetic, read across the cycle.
The record, 2023–2025
realized figures from each filing · older years to the left| 2023’23 | 2024’24 | 2025’25 | |
|---|---|---|---|
| Income statement | |||
| $1.7B | $1.7B | $2.1B | RevenueRevenue |
| $1.3B | $1.4B | $1.5B | Net interest incomeNet int. |
| $433M | $371M | $507M | Noninterest incomeFee inc. |
| $94M | $121M | $107M | Credit-loss provisionProvision |
| $562M | $475M | $642M | Net incomeNet inc. |
| 21% | 18% | 18% | Effective tax rateTax rate |
| Cash flow & returns | |||
| — | 0.9% | 1.1% | Return on assetsROA |
| 9% | 7% | 9% | Return on equityROE |
| 8% | 6% | 8% | Retained to equityRetained/eq |
| 9% | 10% | 12% | Return on tangible equityROTCE |
| 52% | 60% | 57% | Efficiency ratioEffic. |
| $69M | $69M | $75M | Dividends paidDiv. paid |
| ($4.6B) | ($3.7B) | ($5.0B) | Investing cash flowInv. cash |
| $5.2B | $4.0B | $4.4B | Financing cash flowFin. cash |
| $1.1B | $1.2B | $129M | Change in cashΔ cash |
| Balance sheet | |||
| — | $52.6B | $57.7B | Total assetsAssets |
| — | $1.8B | $1.8B | GoodwillGoodwill |
| — | $46.2B | $50.7B | Total liabilitiesTotal liab. |
| $6.0B | $6.4B | $7.0B | Shareholders’ equityEquity |
| Per share | |||
| 76.6M | 77.1M | 77.7M | Shares out (diluted)Shares |
| $7.33 | $6.16 | $8.26 | EPS (diluted)EPS |
| $0.90 | $0.89 | $0.96 | Dividends / shareDiv/sh |
| $78.75 | $83.39 | $90.67 | Book value / shareBVPS |
| $78.75 | $59.14 | $66.48 | Tangible book / shareTBVPS |
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
Is it a good business?
- Below the cost of equityNet income $642M ÷ equity $7.0BIndustry peers: median 8%
What this means
The bank's north star, what it earns on shareholders' capital. Cost of equity is roughly 10%, so a return durably above that builds value and below it destroys it. One year is noisy; the durability across a full credit cycle is what counts.
- SolidNet income ÷ (equity − goodwill $1.8B − intangibles $30M)Industry peers: median 13%
What this means
The cleaner return, stripping out the goodwill paid for past acquisitions. This is the number a buyer of the whole bank actually earns on the hard capital.
- Efficiency ratio 57%Low cost ratio (<58%)Noninterest expense $1.2B ÷ (net interest income + fees)Industry peers: median 62%
What this means
The share of revenue eaten by running costs; lower is better, and below about 60% marks a genuinely efficient operation. A low ratio held for years is the operational side of a moat.
Is it sound?
- Capital (equity / assets) 12.2%Well capitalizedEquity $7.0B ÷ assets $57.7B
What this means
A plain-English leverage read: how much of the balance sheet is the owners' own money. This is a rough proxy; the regulatory figure is the CET1 ratio, which is risk-weighted and reported in the filing. The point is the same, how much loss the bank can absorb before depositors are at risk.
- Funding —Not enough data
What this means
Deposits or total assets missing.
- Credit cost (provision / NII) 7%LowProvision for credit losses $107M ÷ net interest income $1.5B
What this means
What the bank set aside this year against loans going bad, as a share of its lending income. This swings hard with the cycle, low in good years and spiking in recessions, so read it across the record, not in one year. Disciplined underwriting shows up as low, stable provisions through a downturn.
The franchise and the credit cycle
- Not enough data
What this means
The deposit mix isn't cleanly tagged in the filings' structured data; the funding read above carries what is.
- Not enough data
What this means
Not derivable from the filings' structured data — some filers carry recoveries only on segment axes, and a gross figure dressed as net would be a wrong number.
All figures as filed; the source filing is linked above.
Lease obligations
the lease note, SEC EDGAR →Debt by another name. What the business owes on the property, aircraft, stores and equipment it rents rather than owns is a fixed claim due on a schedule; added back to the debt, it is the true leverage. That ladder, operating and finance leases together, and what it adds to the debt on the page above.
Lease payments by year, scaled to the largest; “later” is everything beyond year five, shown apart. These are the contractual cash payments, before the interest the filing imputes back out to the balance-sheet liability.
True leverage: debt plus leases
Counting the leases the way Buffett does, the fixed claims on this business come to $384M, of which the leases are 100%, more than the debt itself. The lease wall above and the debt schedule together are the calendar of what must be paid, and when.
Lease ladder read from the ASC 842 tags in the company’s Dec 31, 2025 annual report and reconciled: the yearly buckets sum to the undiscounted total, which less the imputed interest equals the balance-sheet liability; a ladder that doesn’t tie out is withheld.
Management, ownership & pay
read the proxy →From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.
| Fiscal year | Chief executive | Pay, as filed | “Actually paid” | Owner earnings |
|---|---|---|---|---|
| 2021 | M. Terry Turner | $6.8M | $16.1M | — |
| 2022 | M. Terry Turner | $10.9M | $1.9M | — |
| 2023 | M. Terry Turner | $5.7M | $10.2M | $448M |
| 2024 | M. Terry Turner | $6.2M | $15.5M | $869M |
| 2025 | M. Terry Turner | $6.6M | $16.7M | $722M |
Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.
- Insider ownership1.3%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
- CEO pay ratio83:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
- Stock-based compensation$44M
The slice of the business handed to employees in shares in fiscal 2025, 2.1% of revenue, equal to 2.2% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.
Peers, Banks
The same industry, side by side on the bank lens. Each column names the period it is read over, and a median resting on fewer than three years carries that count beside it; the group median at the foot is the line to read each figure against.
| Company | Revenuelatest FY, USD | ROEmedian over the record | ROTCEmedian over the record | Efficiencymedian over the record | NII / assetsmedian over the record | Noninterest-bearing sharelatest FY |
|---|---|---|---|---|---|---|
| ONBOld National Bancorp | $2.5B | 8% | 13% | 63% | 2.8% | 24% |
| CFRCullen/Frost Bankers | $2.2B | 12% | 14% | 62% | 2.8% | 33% |
| BOKFBOK Financial | $2.2B | 10% | 13% | 64% | 2.5% | 20% |
| PNFPPinnacle Financial Partners | $2.1B | 9% | 10% | 57% | 2.6%2y | — |
| VLYValley National Bancorp | $2.0B | 8% | 11% | 58% | 2.7% | 23% |
| SNVSynovus Financial | $2.0B | 10% | 11% | 59% | 3.0% | 23% |
| BANCBanc of California | $1.8B | 5% | 6% | 75% | 2.8% | 28% |
| FNBF.N.B. | $1.8B | 8% | 14% | 59% | 2.7% | 26% |
| Group median | — | 9% | 12% | 61% | 2.8% | — |
The price
What a price has to assume.
What the price implies
price / tangible bookA bank is worth a multiple of its tangible book value, and the multiple it deserves is set by the return it earns on that book. Type today’s price; we show what you would be paying against what Pinnacle Financial Partners’s record justifies.
The justified multiple is (return on tangible equity − growth) ÷ (cost of equity − growth). A bank earning exactly its cost of equity is worth about one times tangible book; the premium above that prices each point of durable excess return. A higher cost of equity lowers the justified multiple for a bank.
Enter a price above to run it.
Graham applied the same standards to financial enterprises (Intelligent Investor ch.14): the 15× multiple cap on averaged earnings, and P/E times price-to-book at most 22.5. The gate marks the bargain-hunter’s floor, not a verdict.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Tangible book $5.2B on 151M shares, a 10% normalized return on it. The dials set the multiple such a return would justify; your price sets the multiple you are paying. It assumes the bank keeps earning that return; a credit cycle, a rate shock or a bad acquisition changes it, which is what the record and the 10-K are for.
Manual order: ← PNC its page in the Manual PNM →
Industry order: ← PNC the Banks chapter PRK →