Pinnacle Financial Partners Still Early In An Impressive Growth Story

 

Pinnacle Financial Partners' (PNFP) ("Pinnacle") differentiated, service-driven growth model continues to produce results, and the Street continues to take notice. These shares have risen another 25% or so since my last write-up, outperforming the average regional bank by a healthy margin (around 17% or so), and coming in more or less in the middle of my group of other high-growth banks including Bank OZK (OZK), East West (EWBC), First Republic (FRC), Signature Bank (SBNY), and SVB Financial (SIVB) (Signature and First Republic have done a little better, SVB a little worse, and Bank OZK and East-West are further behind).

I continue to be impressed by Pinnacle's ability to enter competitive banking markets organically, luring away proven revenue-producers from larger banks to build the commercial lending franchise. I've also liked the progress on remixing the deposit costs lower, though maintaining that as rates rise will be a challenge. M&A may be a risk to sentiment in the short-term, but I like the company's plan and while this is not the cheapest stock out there, for the growth I believe Pinnacle can achieve, the price is still pretty interesting.

 

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Pinnacle Financial Partners Still Early In An Impressive Growth Story