Pinnacle Financial Partners Inc (NASDAQ:PNFP) Q2 2020 Earnings Conference Call - Final Transcript

Jul 22, 2020 • 09:30 am ET

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Pinnacle Financial Partners Inc (NASDAQ:PNFP) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Executive
M. Terry Turner

the value that we place on our client relationships. Many of our competitors in the past have been viewed as reactionary and heavy-handed. And consequently, they have meaningfully damaged their reputations for valuing long-term relationships. It would surprise me if it were different than that this time. But following the Great Recession, according to Greenwich Associates, Pinnacle had earned the best reputation in our markets for valuing long-term client relationships, and that bond remains critical to us now.

On the bar chart on the left, you can see that this is a time that not only you can destroy client loyalty, but it's a time you can make clients for life. Keep in mind, I believe that Greenwich is doing research for virtually all of the top 50 banks in the country, plus about 600 more. Among all those banks and all those markets, they are already finding that the differentiation that took place in the Great Recession is in fact taking place now. How banks handled deferrals thus far in the pandemic makes a difference. How banks manage the PPP process makes a difference. And based on their extensive research with bank clients, Greenwich has recognized, eight [Phonetic] out of a very large group for banks for whom they did research, is standing out on those variables that are important to clients, and we're thrilled to be one of them.

When we combine the longstanding relationship that we've built, providing long-term client relationships, with the fact that Greenwich has found there has been much angst over the PPP process, which has already eroded bank loyalty among businesses and their owners, that course provides a once-in-a-generation opportunity for market share takers like us to harvest a great deal of market share. Last quarter, Greenwich had already found that 3 in 10 companies with annual revenues between $5 million and $500 million intend to switch banks; 3 in 10. 30% market share is already up for grabs. That's between two times and three times the normal level, and it's still early in the crisis. So, even at this point in the crisis, we believe things like our handling of deferrals and the PPP process are burnishing our reputation for banking clients and that we'll be one of the primary beneficiaries of the market share movement that will inevitably occur and benefit us as we come out the other side.

Jimmy, we'll stop there and be glad to take questions.