Pinnacle Financial Partners Inc (NASDAQ:PNFP) Q1 2019 Earnings Conference Call Transcript

Apr 16, 2019 • 09:30 am ET

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Pinnacle Financial Partners Inc (NASDAQ:PNFP) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning, everyone, and welcome to the Pinnacle Financial Partners' First Quarter 2019 Earnings Conference Call. Hosting the call today from Pinnacle Financial Partners is Mr. Terry Turner, Chief Executive Officer; and Mr. Harold Carpenter, Chief Financial Officer.

Please note Pinnacle's earnings release and this morning's presentation are available on the Investor Relations page on their website at www.pnfp.com. Today's call is being recorded and will be available for replay on Pinnacle's website for the next 90 days. At this time, all participants have been placed in a listen-only mode. The floor will be opened for your questions following the presentation. (Operator Instructions)

Before we begin, Pinnacle does not provide earnings guidance or forecasts. During the presentation, we may make comments which may constitute forward-looking statements. All forward-looking statements are subject to risks and uncertainties and other factors that may cause the actual results, performance or achievements of Pinnacle Financial to differ materially from any results expressed or implied by such forward-looking statements. Many of such factors are beyond Pinnacle Financial's ability to control or predict, and listeners are cautioned not to put undue reliance on such forward-looking statements.

A more detailed description of these and other risks is contained in Pinnacle Financial's most recent Annual Report on Form 10-K. Pinnacle Financial disclaims any obligation to update or revise any forward-looking statements contained in this presentation, whether as a result of new information, future events or otherwise.

In addition, these remarks may include certain non-GAAP financial measures as defined by SEC Regulation G. A presentation of the most directly comparable GAAP financial measures and reconciliation of the non-GAAP measures to the comparable GAAP measures will be available on Pinnacle Financial's website at www.pnfp.com.

With that, I am now going to turn the presentation over to Mr. Terry Turner, Pinnacle's President and CEO.

Executive
M. Terry Turner

Thank you, operator. Good morning. As we always do, I'll begin with this dashboard. As a reminder, it's particularly focused on revenue growth, earnings growth and asset quality because we believe and have believed for a long time that short-term things like M&A or deposit betas, those kinds of things will come and go, but overtime the three most highly correlated metrics for long-term shareholder returns are revenue growth, earnings growth and asset quality.

Because of all the noise that's associated with the BNC merger, in many cases, non-GAAP measures better illustrates relative performance of the firm. So on this chart, I'd like to focus first on revenue which is on the top left. Total revenues, adjusted for gains and losses on transactions in the investment portfolio and merger-related charges, were up 9% over the first quarter of 2018. Much debated net interest income was up nearly 8% year-over-year despite a large reduction in purchase accounting accretion which Harold will discuss in greater detail shortly and the fee income was up 15.6% year-over-year. Next, I want to focus on EPS at $1.24 for the quarter which is in the chart on the top row in the middle. Of course,