Finance stock under pressure: Pinnacle Financial Partners (NASDAQ: PNFP)

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Pinnacle Financial Partners (NASDAQ: PNFP) stock fell over 5.4% on April 21st, 2020 (as of 1:30 pm GMT-4 ; Source: Google finance)  after the company in the first quarter of FY 20 has reported the adjusted earnings per share of 39 cents, missing the analysts’ estimates for the adjusted earnings per share of $1.05. The company has reported that based on an initial assessment of the impact of the pandemic to its loan portfolio, has increased its allowance for credit losses by $86 million during the first quarter of 2020. Therefore, PNFP’s allowance for loan losses to total loans increased to 1.09 percent of its loans at March 31, 2020. Excluding the gains and losses on the sale of investment securities and ORE expenses for both 2020 and 2019, the company posted the return on average assets of 0.42 percent for the first quarter of 2020, compared to 1.39 percent for the fourth quarter of 2019 and 1.55 percent for the first quarter of 2019. The return on average common equity for the first quarter of 2020 decreased to 2.58 percent, compared to 8.78 percent for the fourth quarter of 2019 and 9.49 percent for the first quarter of 2019. First quarter 2020 return on average tangible common equity had fallen to 4.48 percent, compared to 15.41 percent for the fourth quarter of 2019 and 17.60 percent for the first quarter of 2019.

Moreover, the nonperforming assets increased to 0.48 percent of total loans and ORE at the end of March, 2020, compared to 0.46 percent at Dec. 31, 2019 and decreased compared to 0.61 percent at the end of March, 2019. Nonperforming assets had risen to $98.2 million at March 31, 2020, compared to $91.1 million at Dec. 31, 2019 and $111.3 million at March 31, 2019. The company has delivered 10.8% increase in the revenues for the first quarter ended March 31, 2020 to $263.9 million. The company posted net interest income for the first quarter of 2020 of $193.6 million, compared to $194.2 million for the fourth quarter of 2019 and $187.2 million for the first quarter of 2019, which represents a year-over-year growth rate of 3.4%. Net interest margin has fallen to 3.28 percent for the first quarter of 2020, compared to 3.35 percent for the fourth quarter of 2019 and 3.62 percent for the first quarter of 2019.

Additionally, during the first quarter of 2020, the company had repurchased 1.0 million shares of its common stock in open market transactions according to its previously announced share repurchase program, at an average price of $50.01.

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