Pinnacle Financial Q2 revenue more than doubles after Synovus merger

Overview

• US regional bank's Q2 revenue more than doubled yr/yr after Synovus merger

• Adjusted diluted EPS for Q2 rose 25% yr/yr

• Net interest margin declined to 3.44% due to non-recurring items and funding costs

Outlook

• Company did not provide specific guidance for the current quarter or full year

Result Drivers

• MERGER IMPACT - Q2 results reflect the completed merger with Synovus, significantly increasing loans, deposits, and revenue base

• LOAN GROWTH - Period-end loans rose 3% from the prior quarter, driven by commercial and industrial credits across diverse geographies and specialty lending

• NON-INTEREST REVENUE DECLINE - Adjusted non-interest revenue fell $12 mln from the prior quarter, mainly due to lower income from equity-method investment after a shift in placement strategy

Company press release: ID:nBw1NRbqQa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Pinnacle Financial Partners Inc is $117.00, about 20.9% above its July 21 closing price of $96.79

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• July 21 - Nicolet Bankshares Q2 adjusted EPS beats analyst estimates aided by MidWestOne acquisition

• July 21 - Webster Financial Q2 revenue beats estimates on loan, deposit growth

• July 21 - KeyCorp quarterly profit rises on interest income strength

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)