Anthony Elian

Answer

Chairman & CEO Harris Simmons responded that it was too soon to predict a return to deposit growth, emphasizing the focus remains on managing the total funding structure and cost. Regarding digital assets, he opined that tokenized deposits would likely be more impactful for the banking system than stablecoins, but noted Zions' new core platform provides the necessary plumbing to operationalize these innovations as they evolve.

Ask Fintool Equity Research AI

Answer

An executive clarified that the difference between period-end and average loan balances was due to the late-quarter First Bank branch acquisition. Another executive identified manufacturing, trucking and transportation (a <$500M portfolio), and retail as the primary segments being monitored for tariff-related impacts.

Ask Fintool Equity Research AI

Answer

CEO Harris Simmons stated he expects steady loan growth throughout the year, not particularly back-half weighted. Chief Credit Officer Derek Steward explained the increase in classified loans was granular and distributed across the footprint, not driven by a single large credit. He specified the increases were primarily in CRE, driven by multifamily and industrial, due to construction delays, slower lease-up, and higher costs.

Ask Fintool Equity Research AI

Answer

An executive explained that a significant portion of the previously guided benefit has already been realized, contributing to a 4% NII increase. He also stressed that the 1.4% figure is based on the September 30 rate path, which has since changed, and that the official guidance is more important as it includes dynamic management assumptions. Chief Credit Officer Derek Steward stated that the increase in classified multifamily loans was not concentrated in any single market but was diversified across their footprint.

Ask Fintool Equity Research AI

Answer

CEO Ken Vecchione advised looking at the total PPNR impact, noting that if rates don't fall, higher net interest income would offset higher ECR costs. CFO Dale Gibbons addressed the digital asset segment, stating the bank has a 4% concentration limit but could see it moving higher over time, while emphasizing that funding diversification remains a key principle.

Ask Fintool Equity Research AI

Answer

President and CEO Kenneth Vecchione noted that clients are cautious, but growth is coming from longer-term projects like homebuilder finance that are less affected by immediate uncertainty. Chief Banking Officer Tim Bruckner emphasized that their diversified business model, with its ability to dial exposures up or down and its focus on domestic borrowers, is the core strategy for managing risk in any environment.

Ask Fintool Equity Research AI

Answer

Interim CEO and CFO Dale Gibbons asserted that the financial guidance would remain the same even with zero rate cuts, citing the bank's negligible and manageable interest rate sensitivity. On M&A, he stated the bank is not dependent on a deal to cross the $100 billion threshold, preferring to focus on its strong organic growth engine and complete its LFI transition before considering a major acquisition.

Ask Fintool Equity Research AI

Answer

CFO Dale Gibbons stated that the Q4 deposit decline is driven almost entirely by seasonality in the mortgage warehouse business and that brokered deposit levels are expected to remain fairly flat. CEO Ken Vecchione explained that while other channels partially offset the outflow, the mortgage warehouse business is a very large contributor and its inflows were particularly strong in Q3 as competitors retreated, creating a larger-than-usual seasonal reversal.

Ask Fintool Equity Research AI

Answer

Chairman & CEO John Ciulla confirmed that underlying credit trends are positive, with stabilized risk rating migration and no new problem areas. He noted that existing non-performing loans are concentrated in well-managed portfolios, suggesting that while cautious, the company expects the downward trend in problem assets to continue over time.

Ask Fintool Equity Research AI

Answer

CEO John Ciulla confirmed that a number of large transactions closed late in the quarter, leading to higher period-end loan balances. CFO William Holland identified the long end of the yield curve as a key sensitivity for NII, noting that a 50 basis point move impacts NII by about $25 million. He added that more robust economic activity and loan growth could push NII to the high end of the guide, while a recession or flatter curve would push it toward the low end. Short-term rate changes were described as having a less material impact.

Ask Fintool Equity Research AI

Answer

CFO William Holland explained that NII guidance is not highly sensitive to the timing of rate cuts, with a "no cuts" scenario still falling within the guided range. CEO John Ciulla clarified that loan growth is expected to be steady throughout the year, driven by a diversified mix across sponsor finance, national businesses, middle market, business banking, and residential mortgages.

Ask Fintool Equity Research AI

Answer

CEO Kevin Blair confirmed they are on track with their multi-year hiring plan, adding 12 of the 25 commercial bankers planned for 2025. EVP & CFO Jamie Gregory clarified that the fee income outlook for the second half is expected to be relatively stable and in line with Q2's performance, viewing Q1's lower result as an anomaly.

Ask Fintool Equity Research AI

Answer

CEO Kevin Blair stated that loan production was broad-based and not a pull-forward of demand due to tariffs, as confirmed by line utilization monitoring. He also affirmed that RM hiring plans remain unchanged, with CFO Andrew Gregory adding that the expense reduction came from other areas like project costs, facilities, and lower credit-related expenses.

Ask Fintool Equity Research AI

Answer

CFO Jamie Gregory clarified that the negative lead-lag impact from rate cuts has been about half of what was previously modeled ($2-4 million per 25 bps cut) due to effective deposit repricing, implying that a delay in cuts would be a positive variance to guidance. He also confirmed that while some expenses are variable, strategic investments in hiring and technology are more fixed and are expected to proceed regardless of revenue performance within the guided range.

Ask Fintool Equity Research AI

Answer

CEO Kevin Blair identified post-election certainty and continued consumer strength as key catalysts that could lift line utilization, potentially adding $1 billion in loan growth. CFO Jamie Gregory expressed optimism for growth in noninterest-bearing balances in 2025 but acknowledged that the trend remains uncertain.

Ask Fintool Equity Research AI

Answer

Senior EVP & CFO Hope Dmuchowski confirmed that the revenue mix is absolutely more skewed towards NII, as delayed rate cuts have kept NII higher while weighing on countercyclical fee businesses. She also affirmed that the technology infrastructure to support the PPNR opportunity is now built out, with the benefits from these multi-year investments starting to open up revenue opportunities.

Ask Fintool Equity Research AI

Answer

CFO Hope Dmuchowski confirmed that the revenue mix has shifted more toward NII, as the lack of Fed rate cuts has supported net interest income while weighing on countercyclical fee businesses. She also affirmed that the necessary technology infrastructure to achieve the PPNR goal is now built out, with the benefits of this multi-year investment starting to materialize.

Ask Fintool Equity Research AI

Answer

CFO Hope Dmuchowski stated that Q2 should be a 'great quarter for deposits,' driven by seasonal home buying boosting the mortgage warehouse business and new-to-bank promotional campaigns. Chief Credit Officer Thomas Hung identified retail trade, consumer finance, manufacturing, and construction as sectors receiving particular attention due to tariff risk, but emphasized the C&I portfolio is highly diversified with no single industry over 12% of exposure. Chairman, President and CEO Bryan Jordan added that the broader risk is a potential hit to the consumer, which would have a widespread credit impact.

Ask Fintool Equity Research AI

Answer

CFO Hope Dmuchowski acknowledged the lower spot rate will benefit Q1 averages but cautioned that the ability to continue cutting rates depends heavily on the competitive environment. Regarding expenses, she explained that lower revenue would naturally reduce commission-based expenses, and the company remains committed to finding operational efficiencies to deliver positive PPNR growth regardless of the revenue scenario.

Ask Fintool Equity Research AI

Answer

CFO Harold Carpenter noted the 22% annualized C&I growth was broad-based across the franchise, not concentrated in any single area. President & CEO Terry Turner addressed the hiring question by emphasizing Pinnacle's differentiated recruiting model, which relies on internal referrals and a superior work environment. He pointed to Greenwich ratings and accelerating hiring momentum as evidence that their ability to attract top talent remains exceptionally strong, despite competition.

Ask Fintool Equity Research AI

Answer

CFO Harold Carpenter noted that the C&I growth was broad-based across the franchise and not concentrated in any single area. President & CEO Terry Turner affirmed that their hiring success remains 'extraordinary,' citing the high volume and quality of new associates. He credited their differentiated recruiting model, which relies on internal referrals, and their top-tier service reputation (evidenced by Greenwich ratings) as key advantages that allow them to consistently attract the best talent.

Ask Fintool Equity Research AI

Answer

CFO Harold Carpenter noted the C&I growth was broad-based across the franchise rather than concentrated in a specific sector. CEO Terry Turner addressed the talent question by emphasizing their 'extraordinary success' in hiring, which he attributed to a differentiated recruiting model based on internal referrals and a superior service platform, as evidenced by top Greenwich ratings, which gives them a competitive advantage.

Ask Fintool Equity Research AI

Answer

Harold Carpenter (Executive) estimated the total transportation portfolio, which includes trucking, at approximately $700 million. M. Turner (Executive) stated that economic loan demand is near zero as clients pause amidst uncertainty, reinforcing that Pinnacle's growth relies on moving existing client relationships, not new economic activity. He agreed that the Southeast footprint is extraordinarily advantaged for growth once certainty returns.

Ask Fintool Equity Research AI

Answer

M. Turner (executive) attributed the strong loan growth to fundamental performance across geographies and product lines. Harold Carpenter (executive) added that relationship managers are seeing increased inbound client interest, signaling growing confidence. Regarding BHG, Harold Carpenter revealed it also exited its 'buy now, pay later' business, reducing headcount to sharpen its focus on the core franchise.

Ask Fintool Equity Research AI

Answer

Executive Harold Carpenter responded that while a traditional, upward-sloping yield curve is better for all banks, Pinnacle is advantaged by its neutral balance sheet positioning, which helps manage through a difficult rate environment. He expressed hope for a more traditional curve from the overnight rate to the 5-year mark in 2025. Regarding the growth capacity slide, Carpenter clarified that the figures shown represent an average expectation based on their historical model, not a best-case scenario.

Ask Fintool Equity Research AI

Answer

CFO Joseph Kauder and CEO Jared Wolff identified adjusting incentive compensation accruals and slowing project spending as key levers for expense management. Wolff explained the reduced loan growth forecast was a conservative nod to potential second-half slowdowns, not a change in their positive long-term view of the market opportunity.

Ask Fintool Equity Research AI

Answer

Executive Travis Lan stated that Q2 can 'absolutely be a loan growth quarter,' with momentum in C&I and consumer lending continuing and CRE originations picking up. CEO Ira Robbins supported this by noting the commercial pipeline grew from $2.0 billion to over $2.7 billion. Chief Credit Officer Mark Saeger confirmed the large Q4 problem loans were written down and resolved, with Q1 charge-offs stemming from two new, unique situations involving fraud.

Ask Fintool Equity Research AI

Answer

Chief Credit Officer Mark Saeger indicated the reserve build would likely be more weighted towards the beginning of the year before tapering off. Executive Travis Lan and CEO Ira Robbins added that the deposit growth was broad-based across both branch and specialty channels, highlighting strong activity in international and technology verticals. Robbins emphasized that investments in technology, particularly the Treasury Solutions platform, were key drivers, contributing to a $0.5 billion increase in associated deposit balances in the latter half of the year.

Ask Fintool Equity Research AI

Answer

Executive Travis Lan attributed the deposit growth to a strong pipeline of technology companies and broad-based strength in other commercial and online channels. President Tom Iadanza projected a normalized loan growth rate in the mid-single-digit range, as strong C&I growth will be partly offset by the managed reduction in CRE concentration through 2025.

Ask Fintool Equity Research AI

Answer

Executive Marc Einerman attributed the client fund growth to SVB's ability to win business despite market headwinds but acknowledged future uncertainty. Executive Andrew Giangrave identified textile, footwear, retail, auto, and equipment finance as portfolios being watched closely, noting it is still early to assess the full impact.

Ask Fintool Equity Research AI

Answer

Executive Marc Cadieux responded that while a few very large financings contributed significantly to Q4 VC investment, the bank also performed well in capturing sub-$1 billion deals and benefited from lower client cash burn. He noted that expectations for SVB growth in 2025 are cautious. Chairman and CEO Frank Holding added that while the company remains opportunistic, it is not projecting any material M&A activity for 2025.

Ask Fintool Equity Research AI

Answer

Executive Marc Cadieux confirmed that the bank continues to add new clients and see former clients return, viewing it as a positive sign despite market headwinds. Executive Tom Eklund stated that the current pace of share repurchases is expected to continue through year-end before slowing slightly to meet the $3.5 billion target by Q3 2025.

Ask Fintool Equity Research AI

Answer

CEO Bob Harrison reiterated the full-year loan growth guidance but noted it is subject to economic uncertainty, making it hard to pinpoint growth by quarter. He identified the broader C&I portfolio as an area receiving heightened attention due to potential cost impacts on small businesses. CFO James Moses added that the risk teams view tariff impacts as customer-specific rather than portfolio-wide, underscoring the value of their direct client relationships.

Ask Fintool Equity Research AI

Answer

CFO Jamie Moses projected that with no rate cuts, the quarterly NIM expansion would likely be 1-2 basis points higher than the current guide. He explained the fee income guidance of ~$51 million per quarter reflects a normalization from the back half of 2024, which benefited from non-recurring items like insurance proceeds and extra BOLI income, and may include a touch of conservatism.

Ask Fintool Equity Research AI

Answer

CFO Jamie Moses estimated the unexpected loan payoffs were in the range of $90 million to $95 million. Regarding deposits, he noted the noninterest-bearing mix has been stable for two quarters and expressed hope that this level, which is consistent with pre-pandemic figures, represents a floor as the bank focuses on growing relationships.

Ask Fintool Equity Research AI

Answer

Chief Banking Officer Peter Sefzik confirmed the outlook assumes a capital markets uptick, citing strength in syndications, risk products, and a growing M&A advisory business. Regarding the dealer portfolio, he described a 'wait and see' approach from clients, who are well-prepared from their COVID experience but are currently cautious.

Ask Fintool Equity Research AI

Answer

Chief Banking Officer Peter Sefzik confirmed the loan growth outlook does not factor in an increase in utilization rates. Chief Credit Officer Melinda Chausse explained the modest NPA increase was granular, noting one ~$30 million CRE loan and a theme of pressure from higher rates on companies serving the consumer discretionary sector. She added that NPA levels remain about half of the long-term average.

Ask Fintool Equity Research AI

Answer

Chief Banking Officer Peter Sefzik stated that, excluding the CRE headwind, the bank expects to grow at or above the industry rate in 2025-2026, a sentiment echoed by CEO Curt Farmer, who highlighted the bank's strong positioning. Sefzik explained that growth in equity fund services deposits is driven by a strategy of securing more comprehensive bilateral relationships, which yields more core deposits and fee income.

Ask Fintool Equity Research AI

Answer

CFO Matt Scurlock confirmed that future securities actions are included in the revenue outlook and noted the addition of $300 million in forward-starting swaps this quarter. He mentioned significant swap maturities in Q2 and Q3 provide opportunities to manage balance sheet duration. Regarding the credit structures, Scurlock expects to have 30% of the mortgage finance portfolio moved into the new, more capital-efficient structure by the end of Q2.

Ask Fintool Equity Research AI

Answer

CFO Matt Scurlock clarified that the NII outlook has not fundamentally changed and that achieving mid-to-high single-digit loan growth could push the firm to the higher end of the total revenue guide. CEO Rob Holmes responded to the hiring question, confirming that the new talent is being added to deepen the skill set within existing industry verticals and segments, such as investment banking and treasury services, rather than to launch entirely new product lines.

Ask Fintool Equity Research AI

Answer

CFO Ron Farnsworth explained that Q1 expenses will see a bump due to payroll taxes and insurance, with merit increases impacting Q2. CEO Clint Stein added that the timing of reinvestments, including five new branches and banker hires, will also shape the quarterly expense build. Regarding tech, Executive Torran Nixon described ongoing enhancements to payment platforms that drive core fee income, while Stein noted that specific monetization strategies are competitive but focus on developing scalable, recurring revenue streams from customer-driven solutions.

Ask Fintool Equity Research AI

Answer

CFO Ron Farnsworth tempered expectations, stating the NIM would likely "bounce along the bottom." He emphasized that deposit flows, which are historically variable, would have a much larger impact on the margin than the known repricing tailwinds, making a similar increase uncertain.

Ask Fintool Equity Research AI