In this article, we will take a look at the 10 key earnings reports from the financial sector. You can skip our detailed analysis of these companies and go directly to the 5 Key Earnings Reports from The Financial Sector.
Leading financial stocks, including Bank of America Corporation (NYSE:BAC), The Goldman Sachs Group, Inc. (NYSE:GS) and The Charles Schwab Corporation (NYSE:SCHW), just announced their financial results for the fourth quarter.
Shares of Goldman Sachs and Charles Schwab turned red after the two missed earnings expectations for the fourth quarter. On the other hand, Bank of America shares jumped more than four percent in the pre-market trading session on Wednesday, January 19, after delivering upbeat profit.
Photo by Nick Chong on Unsplash
We will discuss the detailed performance of these companies in the remaining article.
Key Earnings Reports from The Financial Sector
10. First Midwest Bancorp, Inc. (NASDAQ:FMBI)
Number of Hedge Fund Holders: 16
Shares of First Midwest Bancorp, Inc. (NASDAQ:FMBI) slightly moved down on Tuesday, January 18, 2022, after announcing lower-than-expected financial results for the fourth quarter. The Illinois-based bank reported adjusted earnings of 41 cents per share, missing the consensus forecast of 44 cents per share.
Revenue for the quarter rose four percent on a year-over-year basis to $183 million. However, analysts were expecting First Midwest Bancorp, Inc. (NASDAQ:FMBI) to post revenue of $190.3 million.
If we look at some of the key growth metrics, total loans in the quarter increased three percent versus last year to $15 billion, while total average deposit jumped 10 percent to $17 billion in the quarter.
In addition, First Midwest Bancorp, Inc. (NASDAQ:FMBI) reported that net interest income for the quarter fell 6.3 percent versus last year. In addition, the total average funding sources for the quarter increased by $1.1 billion versus the same period last year.
9. Pinnacle Financial Partners, Inc. (NASDAQ:PNFP)
Number of Hedge Fund Holders: 20
Shares of Pinnacle Financial Partners, Inc. (NASDAQ:PNFP) rose nearly four percent in the after-hours trading session on Tuesday, January 18, 2022, after beating profit and sales expectations for the fourth quarter.
Pinnacle Financial Partners, Inc. (NASDAQ:PNFP) earned $1.70 per share on an adjusted basis, up from $1.58 per share in the year-ago quarter. Revenue for the quarter jumped 46.1 percent on a year-over-year basis to $339.486 million. The results easily exceeded analysts’ average estimate of $1.58 per share for earnings and $35.460 million for revenue.
In addition, Pinnacle Financial Partners, Inc. (NASDAQ:PNFP) said net interest income for the quarter jumped eight percent versus last year to $238.8 million. Moreover, total assets at the end of fourth-quarter stood at $38.5 billion, representing a surge of 10.1 percent from the same period of 2020.
Like Pinnacle Financial Partners, Inc. (NASDAQ:PNFP), Bank of America Corporation (NYSE:BAC), The Goldman Sachs Group, Inc. (NYSE:GS) and The Charles Schwab Corporation (NYSE:SCHW), also came into the limelight after posting their quarterly results.
8. Hancock Whitney Corporation (NASDAQ:HWC)
Number of Hedge Fund Holders: 23
Hancock Whitney Corporation (NASDAQ:HWC) recently announced mixed financial results for the fourth quarter. The Mississippi-based bank reported adjusted earnings of $1.51 per share on revenue of $318.9 million.
Analysts were expecting Hancock Whitney Corporation (NASDAQ:HWC) to report earnings of $1.36 per share on revenue of $323.4 million. Looking at the key growth drivers, net interest income for the fourth quarter fell two percent on a sequential basis to $231.9 million. On the bright side, the total deposit for the quarter increased four percent versus the prior quarter to $30.5 billion.
Speaking on the results, CEO of Hancock Whitney Corporation (NASDAQ:HWC), John Hairston, said in a statement:
“Expense management efforts are evident as we surpassed our target for the fourth quarter of 2021, while revenue initiatives are underway. Today our credit metrics are among the best in class, and our capital remains solid despite the impact of excess liquidity on our TCE ratio.”
7. Interactive Brokers Group, Inc. (NASDAQ:IBKR)
Number of Hedge Fund Holders: 31
Shares of Interactive Brokers Group, Inc. (NASDAQ:IBKR) slipped nearly two percent in the after-hours trading session on Tuesday, January 18, 2022, after missing revenue expectations for the fourth quarter.
Interactive Brokers Group, Inc. (NASDAQ:IBKR) posted revenue of $603 million, below the consensus forecast of $669.8 million. Nevertheless, the adjusted earnings of 83 cents per share were in line with the expectations.
Moreover, net interest income for the quarter jumped 31 percent on a year-over-year basis to $295 million. The surge was mainly driven by higher margin loan balances and solid securities lending activities during the quarter.
In addition, Interactive Brokers Group, Inc. (NASDAQ:IBKR) reported that its customers account in the quarter climbed 56 percent versus last year to 1.68 million. On the downside, noninterest income fell 18 percent to $308 million.
Like Interactive Brokers Group, Inc. (NASDAQ:IBKR), investors are also closely watching Bank of America Corporation (NYSE:BAC), The Goldman Sachs Group, Inc. (NYSE:GS) and The Charles Schwab Corporation (NYSE:SCHW), following their earnings reports.
6. Silvergate Capital Corporation (NYSE:SI)
Number of Hedge Fund Holders: 32
Shares of Silvergate Capital Corporation (NYSE:SI) plummeted about 25 percent, hitting a nearly four-month low, on Tuesday, January 18, 2022, after reporting a lower-than-expected profit for the fourth quarter.
Silvergate Capital Corporation (NYSE:SI) posted earnings of 66 cents per share, compared to 47 cents per share in the same period last year. However, analysts were looking for earnings of 72 cents per share.
Net interest income for the quarter increased to $40.2 million versus $22.4 million in the comparable period of 2020. In comparison, noninterest income fell 21.3 percent on a year-over-year basis to $11.1 million.
Silvergate Capital Corporation (NYSE:SI) is also a leading provider of financial infrastructure services to the cryptocurrency market. Its digital currency customer-related fee income for the quarter rose to $9.3 million, more than doubled from $3.8 million in the year-ago quarter. In addition, average digital currency customer deposits increased to $13.3 billion.
Discussing the results, CEO of Silvergate Capital Corporation (NYSE:SI), Alan Lane, said in a statement:
“2021 was another year of significant growth and momentum for Silvergate, driven by strong demand for our digital currency solutions powered by the SEN. Total deposits grew to $14.3 billion at the end of 2021 and our full year net income more than tripled compared to last year, reflecting growth in both fee income and net interest income.”
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Disclosure: None. 10 Key Earnings Reports from The Financial Sector is originally published on Insider Monkey.
