Richard Callicutt on regional market differences
From Pinnacle Financial CEO on Q4 earnings, real estate loans · · CNBC Television
“The markets that we operate here in the Southeast are significantly different than what I see in San Francisco or New England or some of these other markets. We've enjoyed really strong growth since 2020, which is a very different dynamic and plays out in the health of the commercial real estate portfolio.”
On , Richard Callicutt, Chairman for the Carolinas & Virginia and Director at PINNACLE FINL PARTNERS INC, spoke about regional market differences during Pinnacle Financial CEO on Q4 earnings, real estate loans on CNBC Television.
About Richard Callicutt
In a September 2024 CNBC appearance, Pinnacle Financial Partners CEO Terry Turner discussed the company's incentive compensation structure, stating that 100% of salary-based associates are included in the incentive plan and that payouts are tied to hitting revenue and EPS targets. Turner noted that in 2023, a difficult year for banks, the company reduced incentives by 38%, and that assuming targets are met in the following year, the incentive expense would need to increase from 62% to 100%. He said the company believes it will grow EPS. Regarding commercial real estate exposure, Turner said the bank is "well underneath" regulatory guidelines of 100% of risk-based capital for construction credit and 300% for total commercial real estate. He attributed the health of the portfolio to strong growth in the Southeast since 2020, describing the region as the only U.S. quadrant with positive net population growth. Turner stated that the bank's internal scenario is for a soft landing rather than a serious recession.