Earnings of Pinnacle Financial Partners, Inc. (NASDAQ:PNFP) will likely trend upwards on the back of the reinvestment of maturing fixed-rate loans that were carrying very low rates. Loan growth will likely add further support for
Pinnacle Financial Partners: Loan Renewals, Organic Loan Growth To Drive Earnings
Summary
- A large amount of low-yielding fixed-rate loans will mature in the second half of 2024. The reinvestment will lift the margin despite the falling rate environment.
- I’m expecting loan growth to improve because of interest rate cuts as well as Tennessee’s economic strength.
- Weakness in the BHG group will likely undermine the growth of core fee income.
- The December 2025 target price suggests a small upside from the current market price. PNFP is offering a very low dividend yield of 0.94%.
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