NASHVILLE, Tenn.--(BUSINESS WIRE)--Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) today reported that its net income per fully diluted common share available to common stockholders was $0.21 for the quarter ended March 31, 2012, compared to net income per fully diluted common share available to common stockholders of $0.06 for the quarter ended March 31, 2011, an increase of 258 percent.
“Fiscal 2011 was a pivotal year for our firm as we focused intently on reducing the level of problem assets and expanding our core earnings capacity,” said M. Terry Turner, Pinnacle’s president and chief executive officer. “I am pleased to report that we have continued that trend in the first quarter of 2012. We capitalized on asset quality improvements and continued the expansion of our core revenue base. We grew our loan portfolio for the third consecutive quarter—an indication that we are successfully executing our plan to grow through market share movement despite tepid economic growth. Our business development pipelines expanded significantly during the quarter, and we expect loan growth to accelerate in the second quarter and for the remainder of 2012.”
Building the Core Earnings Capacity of the Firm
- Loans at March 31, 2012, were $3.34 billion, an increase of $46.5 million from $3.29 billion at Dec. 31, 2011, and up 3.7 percent over the same quarter last year. Commercial and industrial loans combined with owner-occupied commercial real estate loans were $1.77 billion at March 31, 2012, an increase of $43.3 million from $1.73 billion at Dec. 31, 2011, and up 11.1 percent over the same quarter last year and the seventh consecutive quarter of net growth.
- Average balances of noninterest bearing deposit accounts were $701.8 million in the first quarter of 2012. Average balances decreased 0.5 percent over fourth quarter 2011 but were up 18.0 percent over the same quarter last year.
- Revenue for the quarter ended March 31, 2012, amounted to $49.45 million, compared to $44.34 million for the same quarter of last year, an increase of 11.5 percent.
- Net interest margin increased to 3.74 percent for the quarter ended March 31, 2012, from 3.40 percent for the quarter ended March 31, 2011.
- Since expanding to the Knoxville market in the summer of 2007, Pinnacle has continued its strong growth in that market. Its Knoxville footprint reached $544.4 million in loans at the end of the first quarter 2012.
“While we had strong loan growth for the first quarter of 2012, we expect our loan growth to increase meaningfully during the second quarter of 2012. Consistent with our plan, we continue to hire experienced relationship managers with established portfolios from other financial institutions,” Turner said. “This brings the total number of relationship managers hired to ten since June 30, 2011.”
Aggressively Dealing with Credit Issues
-
Nonperforming assets declined by $10.7 million from Dec. 31, 2011, a
linked-quarter reduction of 12.2 percent and the seventh consecutive
quarterly reduction.
- Pinnacle resolved $25.3 million in nonperforming assets during the first quarter of 2012, compared to resolutions of $32.3 million during the fourth quarter of 2011.
- Nonperforming loans declined by $5.0 million during the first quarter of 2012, a linked-quarter reduction of 10.5 percent and the eighth consecutive quarterly reduction. Nonperforming loans are down 43.9 percent from a year ago.
- Nonperforming loan inflows were $14.3 million during the first quarter of 2012, a linked-quarter decrease of 27.5 percent. Nonperforming loan inflows were also down 43.7 percent from the first quarter a year ago.
- Other real estate also declined by $5.7 million during the first quarter of 2012, inclusive of $4.6 million in property foreclosures during the first quarter of 2012.
- Potential problem loans, which are classified loans that continue to accrue interest, declined by $4.1 million from Dec. 31, 2011, a linked-quarter reduction of 3.1 percent. Potential problem loans are down from $173.8 million at March 31, 2011, to $126.3 million at March 31, 2012, a decrease of 27.3 percent. Potential problem loans are down by 60.3 percent from their peak in June 2010.
“Since 2008, our financial performance has been significantly impacted by costs associated with the resolution of problem assets,” Turner said. “As we move through 2012, we believe costs associated with problem asset resolution will decrease as we continue to reduce the absolute size of our problem asset portfolio.”
OTHER FIRST QUARTER 2012 HIGHLIGHTS:
-
Deposits
- For the last several quarters, the firm has worked to reposition its deposit base so that average balances for noninterest-bearing demand, interest checking and money market accounts for the first quarter of 2012 increased to $2.91 billion from $2.88 billion for the fourth quarter of 2011, or 1.0 percent, while average balances for higher-cost time deposits decreased from $759 million to $689 million, or 9.2 percent, during the same time period. In comparison to the prior year’s quarter, average balances for noninterest-bearing demand, interest checking and money market accounts increased 5.1 percent, while average balances for higher-cost time deposits decreased 31.5 percent.
-
Operating results
- Net income available to common stockholders for the first quarter of 2012 was $7.21 million, compared to the prior year’s first quarter net income available to common stockholders of $2.01 million. Fourth quarter 2011 net income available to common stockholders totaled $5.7 million, which included the impact of $718,000 of additional accretion charges as a result of the Company’s redemption of 25 percent of its TARP preferred shares on Dec. 28, 2011.
-
Noninterest income for the quarter ended March 31, 2012, was $9.9
million, compared to $9.7 million for the fourth quarter of 2011
and $8.3 million for the same quarter last year. Excluding the
impact of net securities gains and losses, noninterest income was
up 17.3 percent over the same quarter last year.
- Wealth management revenues, which include investment services, trust services and insurance, were $3.73 million during the first quarter of 2012, an increase of 13.5 percent over the same period last year due primarily to additional emphasis on internal referral programs and the addition of several new associates over the past two years.
- Net gains on mortgage loans sold increased to $1.50 million during the first quarter of 2012, compared to $1.46 million during the fourth quarter of 2011 and $0.6 million during the first quarter of 2011 due primarily to elevated mortgage loan refinance activity as a result of the current rate environment.
“Our first quarter 2012 net interest margin increased to 3.74 percent,” said Harold R. Carpenter, Pinnacle’s chief financial officer. “Much of our margin expansion in recent quarters has been largely attributable to reductions in our cost of funds. We believe we have additional opportunities to reduce our funding costs in future quarters, but we are gaining more confidence that loan growth will also begin to influence our margin results in a more positive way over the next several quarters. Even though loan pricing is very competitive in our markets, our loan pipelines continue to experience steady growth, creating optimism that we should see gradual expansion of our operating revenues this year.”
-
Capital
- At March 31, 2012, Pinnacle’s ratio of tangible common stockholders’ equity to tangible assets was 8.8 percent, compared to 7.4 percent at March 31, 2011, and 8.4 percent at Dec. 31, 2011. At March 31, 2012, Pinnacle’s total risk-based capital ratio was 15.4 percent, compared to 15.2 percent at March 31, 2011, and 15.3 percent at Dec. 31, 2011.
“Our capital position has become even more solidified with the last several quarters’ results,” Turner said. “We continue to discuss our strategy for redemption of our TARP preferred shares with our primary regulators. We remain optimistic that we should be able to redeem our remaining outstanding TARP preferred shares with limited, if any, dilution to our shareholders.”
-
Credit quality
-
The allowance for loan losses represented 2.14 percent of total
loans at March 31, 2012, compared to 2.25 percent at Dec. 31,
2011, and 2.46 percent at March 31, 2011.
- Net charge-offs were $3.63 million for the quarter ended March 31, 2012, compared to $9.73 million for the quarter ended March 31, 2011, and $6.34 million for the fourth quarter of 2011.
- Provision for loan losses expense decreased from $6.14 million for the first quarter of 2011 to $1.03 million for the first quarter of 2012. Provisioning expense decreased as a result of the overall improvement in the credit quality of the loan portfolio as compared to the same period in 2011.
- Nonperforming assets were 2.28 percent of total loans plus other real estate at March 31, 2012, compared to 2.66 percent at Dec. 31, 2011, and 4.04 percent at March 31, 2011. The ratio of the allowance for loan losses to nonperforming loans increased to 166.6 percent at March 31, 2012, from 154.6 percent at Dec. 31, 2011, and 103.4 percent at March 31, 2011.
- Past due loans over 30 days, excluding nonperforming loans, were 0.34 percent of total loans at March 31, 2012, compared to 0.36 percent at Dec. 31, 2011, and 0.36 percent at March 31, 2011.
-
The allowance for loan losses represented 2.14 percent of total
loans at March 31, 2012, compared to 2.25 percent at Dec. 31,
2011, and 2.46 percent at March 31, 2011.
"We are pleased with the linked-quarter improvement in credit metrics in the first quarter of 2012, and we believe that this trend should continue throughout the year," Carpenter said. "We continue to be optimistic that our 2012 credit costs will reflect meaningful improvement over 2011."
The following is a summary of the activity in various nonperforming asset and troubled debt restructuring categories for the quarter ended March 31, 2012:
| (in thousands) |
Balances
Dec. 31, 2011 |
Payments, Sales and Reductions | Foreclosures | Inflows |
Balances
March 31, 2012 |
||||||||||||
| Troubled debt restructurings: | |||||||||||||||||
| Residential construction and development | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||
| Commercial construction and development | - | - | - | - | - | ||||||||||||
| Commercial real estate | 15,378 | (58 | ) | - | - | 15,320 | |||||||||||
| Other | 8,038 | (561 | ) | (348 | ) | 383 | 7,512 | ||||||||||
| Totals | 23,416 | (619 | ) | (348 | ) | 383 | 22,832 | ||||||||||
| Nonperforming loans: | |||||||||||||||||
| Residential construction and development | 8,120 | (4,661 | ) | (1,689 | ) | 1,234 | 3,004 | ||||||||||
| Commercial construction and development | 6,991 | (595 | ) | (982 | ) | 708 | 6,122 | ||||||||||
| Commercial real estate | 8,300 | (1,085 | ) | (818 | ) | 8,497 | 14,894 | ||||||||||
| Other | 24,444 | (8,709 | ) | (738 | ) | 3,835 | 18,832 | ||||||||||
| Totals | 47,855 | (15,050 | ) | (4,227 | ) | 14,274 | 42,852 | ||||||||||
| Other real estate: | |||||||||||||||||
| Residential construction and development | 13,909 | (3,333 | ) | 1,689 | - | 12,265 | |||||||||||
| Commercial construction and development | 20,097 | (5,119 | ) | 982 | - | 15,960 | |||||||||||
| Other | 5,708 | (1,818 | ) | 1,904 | - | 5,794 | |||||||||||
| Totals | 39,714 | (10,270 | ) | 4,575 | - | 34,019 | |||||||||||
| Total nonperforming assets and troubled debt restructurings | $ | 110,985 | $ | (25,939 | ) | $ | - | $ | 14,657 | $ | 99,703 | ||||||
-
Noninterest and income tax expense
- Noninterest expense for the quarter ended March 31, 2012, was $35.82 million, compared to $34.70 million in the first quarter of 2011, and $34.37 million in the fourth quarter of 2011.
- Included in noninterest expense for the first quarter of 2012 was $4.68 million in other real estate expenses, compared to $4.33 million in the first quarter of 2011, and $4.19 million in the fourth quarter of 2011.
- Income tax expense was $4.2 million for the first quarter of 2012, compared to no expense in the first quarter of 2011, resulting in an effective tax rate for the first quarter of 2012 of 33.6 percent.
Included in the other real estate expense for the quarter was $4.0 million of additional write downs of existing OREO balances based on updated appraisals. The firm also recorded $105,000 in losses related to the disposition of $10.3 million of other real estate properties. Excluding the impact of OREO expenses in each quarterly period, the first quarter of 2012 noninterest expense was approximately $31.1 million, compared to $30.2 million in the fourth quarter of 2011 and $30.4 million in the first quarter of 2011. Carpenter noted that the first quarter 2012 increase was anticipated due to employee merit raises and payroll taxes as well as an increase in certain administrative costs. He also noted that he anticipates the quarterly expense run rate of the first quarter to remain fairly consistent for the remaining three quarters of 2012 excluding the impact of new hires, which is likely to occur throughout the year.
WEBCAST AND CONFERENCE CALL INFORMATION
Pinnacle will host a webcast and conference call at 8:30 a.m. (CT) on April 17, 2012, to discuss first quarter 2012 results and other matters. To access the call for audio only, please call 1-877-602-7944. For the presentation and streaming audio, please access the webcast on the investor relations page of Pinnacle's website at www.pnfp.com.For those unable to participate in the webcast, it will be archived on the investor relations page of Pinnacle's website at www.pnfp.com for 90 days following the presentation. Pinnacle Financial Partners provides a full range of banking, investment, mortgage and insurance products and services designed for small- to mid-sized businesses and their owners and individuals interested in a comprehensive relationship with their financial institution. Comprehensive wealth management services, such as financial planning and trust, help clients increase, protect and distribute their assets. The firm began operations in a single downtown Nashville location in Oct. 2000 and has since grown to over $4.79 billion in assets at March 31, 2012. At March 31, 2012, Pinnacle is the second-largest bank holding company headquartered in Tennessee, with 29 offices in eight Middle Tennessee counties and three offices in Knoxville. Additional information concerning Pinnacle can be accessed at www.pnfp.com.
Certain of the statements in this release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "expect," "anticipate," “goal,” “objective,” "intend," "plan," "believe," ”should,” "seek," ”estimate" and similar expressions are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking. All forward-looking statements are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of Pinnacle Financial to differ materially from any results expressed or implied by such forward-looking statements. Such risks include, without limitation, (i) deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses; (ii) continuation of the historically low short-term interest rate environment; (iii) the inability of Pinnacle Financial to grow its loan portfolio in the Nashville-Davidson-Murfreesboro-Franklin MSA and the Knoxville MSA; (iv) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (v) effectiveness of Pinnacle Financial’s asset management activities in improving, resolving or liquidating lower-quality assets; (vi) increased competition with other financial institutions; (vii) greater than anticipated adverse conditions in the national or local economies including the Nashville-Davidson-Murfreesboro-Franklin MSA and the Knoxville MSA, particularly in commercial and residential real estate markets; (viii) rapid fluctuations or unanticipated changes in interest rates; (ix) the results of regulatory examinations; (x) the development of any new market other than Nashville or Knoxville; (xi) a merger or acquisition; (xii) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including intangible assets; (xiii) the ability to attract additional financial advisors or to attract customers from other financial institutions; (xiv) the impact of governmental restrictions on and discretionary regulatory authority over entities participating in the Capital Purchase Program, of the U.S. Department of the Treasury (the “Treasury”); (xv) further deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xvi) inability to comply with regulatory capital requirements or to secure any required regulatory approvals for capital actions, including redemption of the remaining TARP preferred shares that are outstanding; and, (xvii) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, including regulatory or legislative developments arising out of current unsettled conditions in the economy, including implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act. A more detailed description of these and other risks is contained in Pinnacle Financial's most recent annual report on Form 10-K filed with the Securities and Exchange Commission on March 2, 2012. Many of such factors are beyond Pinnacle Financial's ability to control or predict, and readers are cautioned not to put undue reliance on such forward-looking statements. Pinnacle Financial disclaims any obligation to update or revise any forward-looking statements contained in this release, whether as a result of new information, future events or otherwise.
| PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | |||||||
| CONSOLIDATED BALANCE SHEETS – UNAUDITED | |||||||
| March 31, 2012 | December 31, 2011 | ||||||
| ASSETS | |||||||
| Cash and noninterest-bearing due from banks | $ | 60,400,972 | $ | 63,015,997 | |||
| Interest-bearing due from banks | 70,901,830 | 108,422,470 | |||||
| Federal funds sold and other | 764,526 | 724,573 | |||||
| Short-term discount notes | - | - | |||||
| Cash and cash equivalents | 132,067,328 | 172,163,040 | |||||
| Securities available-for-sale, at fair value | 838,718,889 | 894,962,246 | |||||
|
Securities held-to-maturity (fair value of $1,074,394 and $2,369,118 and at March 31, 2012 and December 31, 2011, respectively) |
1,049,793 | 2,329,917 | |||||
| Mortgage loans held-for-sale | 23,541,493 | 35,363,038 | |||||
| Loans | 3,337,869,085 | 3,291,350,857 | |||||
| Less allowance for loan losses | (71,379,400 | ) | (73,974,675 | ) | |||
| Loans, net | 3,266,489,685 | 3,217,376,182 | |||||
| Premises and equipment, net | 76,378,894 | 77,127,361 | |||||
| Other investments | 44,990,439 | 44,653,840 | |||||
| Accrued interest receivable | 16,019,272 | 15,243,366 | |||||
| Goodwill | 244,071,513 | 244,076,492 | |||||
| Core deposit and other intangible assets | 7,156,200 | 7,842,267 | |||||
| Other real estate owned | 34,018,658 | 39,714,415 | |||||
| Other assets | 105,080,416 | 113,098,540 | |||||
| Total assets | $ | 4,789,582,580 | $ | 4,863,950,704 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Deposits: | |||||||
| Noninterest-bearing | $ | 756,909,243 | $ | 717,378,933 | |||
| Interest-bearing | 694,755,093 | 637,203,420 | |||||
| Savings and money market accounts | 1,497,843,377 | 1,585,260,139 | |||||
| Time | 655,783,708 | 714,496,974 | |||||
| Total deposits | 3,605,291,421 | 3,654,339,466 | |||||
| Securities sold under agreements to repurchase | 118,088,532 | 131,591,412 | |||||
| Federal Home Loan Bank advances | 226,031,695 | 226,068,796 | |||||
| Subordinated debt | 97,476,000 | 97,476,000 | |||||
| Accrued interest payable | 1,912,756 | 2,233,330 | |||||
| Other liabilities | 22,116,728 | 42,097,132 | |||||
| Total liabilities | 4,070,917,132 | 4,153,806,136 | |||||
| Stockholders’ equity: | |||||||
|
Preferred stock, no par value; 10,000,000 shares authorized; 71,250 shares issued and outstanding at March 31, 2012 and December 31, 2011, respectively |
69,355,475 | 69,096,828 | |||||
|
Common stock, par value $1.00; 90,000,000 shares authorized; 34,616,013 shares and 34,354,960 shares issued and outstanding at March 31, 2012 and December 31, 2011, respectively |
34,616,013 | 34,354,960 | |||||
| Common stock warrants | 3,348,402 | 3,348,402 | |||||
| Additional paid-in capital | 537,860,446 | 536,227,537 | |||||
| Retained earnings | 56,999,267 | 49,783,584 | |||||
| Accumulated other comprehensive income, net of taxes | 16,485,845 | 17,333,257 | |||||
| Stockholders’ equity | 718,665,448 | 710,144,568 | |||||
| Total liabilities and stockholders’ equity | $ | 4,789,582,580 | $ | 4,863,950,704 | |||
| This information is preliminary and based on company data available at the time of the presentation. | |||||||
| PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | |||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS – UNAUDITED | |||||||
| Three Months Ended | |||||||
| March 31, | |||||||
| 2012 | 2011 | ||||||
| Interest income: | |||||||
| Loans, including fees | $ | 38,637,719 | $ | 38,353,481 | |||
| Securities | |||||||
| Taxable | 4,929,284 | 6,360,899 | |||||
| Tax-exempt | 1,703,146 | 1,935,888 | |||||
| Federal funds sold and other | 553,939 | 574,006 | |||||
| Total interest income | 45,824,088 | 47,224,274 | |||||
| Interest expense: | |||||||
| Deposits | 4,827,476 | 9,424,241 | |||||
| Securities sold under agreements to repurchase | 155,576 | 381,569 | |||||
| Federal Home Loan Bank advances and other borrowings | 1,337,031 | 1,397,831 | |||||
| Total interest expense | 6,320,083 | 11,203,641 | |||||
| Net interest income | 39,504,005 | 36,020,633 | |||||
| Provision for loan losses | 1,034,245 | 6,139,138 | |||||
| Net interest income after provision for loan losses | 38,469,760 | 29,881,495 | |||||
| Noninterest income: | |||||||
| Service charges on deposit accounts | 2,323,962 | 2,261,457 | |||||
| Investment services | 1,646,778 | 1,508,086 | |||||
| Insurance sales commissions | 1,287,560 | 1,049,232 | |||||
| Gain on mortgage loans sold, net | 1,494,472 | 609,377 | |||||
| Gain (loss) on sale of investment securities, net | 113,600 | (159,103 | ) | ||||
| Trust fees | 795,435 | 729,988 | |||||
| Other noninterest income | 2,287,531 | 2,325,020 | |||||
| Total noninterest income | 9,949,338 | 8,324,057 | |||||
| Noninterest expense: | |||||||
| Salaries and employee benefits | 19,792,566 | 17,923,622 | |||||
| Equipment and occupancy | 5,008,655 | 5,006,710 | |||||
| Other real estate owned | 4,676,064 | 4,334,118 | |||||
| Marketing and other business development | 785,325 | 753,751 | |||||
| Postage and supplies | 563,294 | 489,877 | |||||
| Amortization of intangibles | 686,067 | 715,904 | |||||
| Other noninterest expense | 4,307,735 | 5,476,846 | |||||
| Total noninterest expense | 35,819,706 | 34,700,828 | |||||
| Income before income taxes | 12,599,392 | 3,504,724 | |||||
| Income tax expense | 4,234,438 | - | |||||
| Net income | 8,364,954 | 3,504,724 | |||||
| Preferred dividends | 900,519 | 1,187,500 | |||||
| Accretion on preferred stock discount | 258,647 | 305,974 | |||||
| Net income available to common stockholders | $ | 7,205,788 | $ | 2,011,250 | |||
| Per share information: | |||||||
| Basic net income per common share available to common stockholders | $ | 0.21 | $ | 0.06 | |||
| Diluted net income per common share available to common stockholders | $ | 0.21 | $ | 0.06 | |||
| Weighted average shares outstanding: | |||||||
| Basic | 33,811,871 | 33,366,053 | |||||
| Diluted | 34,423,898 | 34,013,810 | |||||
| This information is preliminary and based on company data available at the time of the presentation. | |||||||
| PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | ||||||||||||||||||
| ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED | ||||||||||||||||||
| (dollars in thousands) | Three months ended | Three months ended | ||||||||||||||||
| March 31, 2012 | March 31, 2011 | |||||||||||||||||
| Average Balances | Interest | Rates/ Yields | Average Balances | Interest | Rates/ Yields | |||||||||||||
| Interest-earning assets: | ||||||||||||||||||
| Loans (1) | $ | 3,280,030 | $ | 38,638 | 4.74 | % | $ | 3,191,076 | $ | 38,353 | 4.88 | % | ||||||
| Securities | ||||||||||||||||||
| Taxable | 688,645 | 4,929 | 2.88 | % | 811,793 | 6,361 | 3.18 | % | ||||||||||
| Tax-exempt (2) | 186,864 | 1,703 | 4.90 | % | 198,551 | 1,936 | 5.21 | % | ||||||||||
| Federal funds sold and other | 161,434 | 554 | 1.50 | % | 185,911 | 574 | 1.35 | % | ||||||||||
| Total interest-earning assets | 4,316,973 | $ | 45,824 | 4.33 | % | 4,387,331 | $ | 47,224 | 4.43 | % | ||||||||
| Nonearning assets | ||||||||||||||||||
| Intangible assets | 251,668 | 254,529 | ||||||||||||||||
| Other nonearning assets | 252,310 | 226,885 | ||||||||||||||||
| Total assets | $ | 4,820,951 | $ | 4,868,745 | ||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||
| Interest checking | $ | 664,869 | $ | 824 | 0.50 | % | $ | 592,356 | $ | 956 | 0.65 | % | ||||||
| Savings and money market | 1,541,559 | 2,142 | 0.56 | % | 1,579,325 | 4,061 | 1.04 | % | ||||||||||
| Time | 689,083 | 1,861 | 1.09 | % | 1,005,760 | 4,408 | 1.78 | % | ||||||||||
| Total interest-bearing deposits | 2,895,511 | 4,827 | 0.67 | % | 3,177,441 | 9,425 | 1.20 | % | ||||||||||
| Securities sold under agreements to repurchase | 129,892 | 156 | 0.48 | % | 185,471 | 382 | 0.83 | % | ||||||||||
|
Federal Home Loan Bank advances and other borrowings |
238,578 | 610 | 1.03 | % | 113,705 | 742 | 2.65 | % | ||||||||||
| Subordinated debt | 97,476 | 727 | 3.00 | % | 97,476 | 656 | 2.73 | % | ||||||||||
| Total interest-bearing liabilities | 3,361,457 | 6,320 | 1.29 | % | 3,574,093 | 11,204 | 1.27 | % | ||||||||||
| Noninterest-bearing deposits | 701,760 | - | - | 594,651 | - | - | ||||||||||||
| Total deposits and interest-bearing liabilities | 4,063,217 | $ | 6,320 | 0.63 | % | 4,168,744 | $ | 11,204 | 1.09 | % | ||||||||
| Other liabilities | 37,946 | 17,363 | ||||||||||||||||
| Stockholders' equity | 719,788 | 682,638 | ||||||||||||||||
| Total liabilities and stockholders' equity | $ | 4,820,951 | $ | 4,868,745 | ||||||||||||||
| Net interest income | $ | 39,504 | $ | 36,020 | ||||||||||||||
| Net interest spread (3) | 3.58 | % | 3.16 | % | ||||||||||||||
| Net interest margin (4) | 3.74 | % | 3.40 | % | ||||||||||||||
| (1) Average balances of nonperforming loans are included in the above amounts. | ||||||||||||||||||
| (2) Yields computed on tax-exempt instruments on a tax equivalent basis. | ||||||||||||||||||
| (3) Yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. The net interest spread calculation excludes the impact of demand deposits. Had the impact of demand deposits been included, the net interest spread for the quarter ended March 31, 2012 would have been 3.71% compared to a net interest spread of 3.34% for the quarter ended March 31, 2011. | ||||||||||||||||||
| (4) Net interest margin is the result of annualized net interest income calculated on a tax equivalent basis divided by average interest-earning assets for the period. | ||||||||||||||||||
|
This information is preliminary and based on company data available at the time of the presentation. |
||||||||||||||||||
| PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | ||||||||||||||||||||
| SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | ||||||||||||||||||||
| (dollars in thousands) | March | December | September | June | March | December | ||||||||||||||
| 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | |||||||||||||||
| Balance sheet data, at quarter end: | ||||||||||||||||||||
| Commercial real estate - mortgage loans | $ | 1,123,690 | 1,110,962 | 1,087,333 | 1,091,283 | 1,102,533 | 1,094,615 | |||||||||||||
| Consumer real estate - mortgage loans | 688,817 | 695,745 | 711,994 | 708,280 | 698,693 | 705,487 | ||||||||||||||
| Construction and land development loans | 281,624 | 274,248 | 278,660 | 282,064 | 300,697 | 331,261 | ||||||||||||||
| Commercial and industrial loans | 1,180,578 | 1,145,735 | 1,095,037 | 1,058,263 | 1,047,754 | 1,012,091 | ||||||||||||||
| Consumer and other | 63,160 | 64,661 | 68,125 | 67,214 | 67,753 | 68,986 | ||||||||||||||
| Total loans | 3,337,869 | 3,291,351 | 3,241,149 | 3,207,104 | 3,217,430 | 3,212,440 | ||||||||||||||
| Allowance for loan losses | (71,379 | ) | (73,975 | ) | (74,871 | ) | (76,971 | ) | (78,988 | ) | (82,575 | ) | ||||||||
| Securities | 839,769 | 897,292 | 942,752 | 925,508 | 984,200 | 1,018,637 | ||||||||||||||
| Total assets | 4,789,583 | 4,863,951 | 4,868,905 | 4,831,333 | 4,820,991 | 4,909,004 | ||||||||||||||
| Noninterest-bearing deposits | 756,909 | 717,379 | 722,694 | 662,018 | 608,428 | 586,517 | ||||||||||||||
| Total deposits | 3,605,291 | 3,654,339 | 3,712,650 | 3,761,520 | 3,731,883 | 3,833,057 | ||||||||||||||
| Securities sold under agreements to repurchase | 118,089 | 131,591 | 128,954 | 124,514 | 165,132 | 146,294 | ||||||||||||||
| FHLB advances and other borrowings | 226,032 | 226,069 | 161,106 | 111,191 | 111,351 | 121,393 | ||||||||||||||
| Subordinated debt | 97,476 | 97,476 | 97,476 | 97,476 | 97,476 | 97,476 | ||||||||||||||
| Total stockholders’ equity | 718,665 | 710,145 | 724,374 | 699,228 | 681,226 | 677,457 | ||||||||||||||
| Balance sheet data, quarterly averages: | ||||||||||||||||||||
| Total loans | $ | 3,280,030 | 3,261,972 | 3,207,213 | 3,211,591 | 3,191,076 | 3,217,738 | |||||||||||||
| Securities | 875,509 | 924,153 | 939,778 | 972,750 | 1,010,344 | 993,236 | ||||||||||||||
| Total earning assets | 4,316,973 | 4,347,352 | 4,308,710 | 4,347,552 | 4,387,331 | 4,441,672 | ||||||||||||||
| Total assets | 4,820,951 | 4,852,311 | 4,786,485 | 4,826,731 | 4,868,745 | 4,937,181 | ||||||||||||||
| Noninterest-bearing deposits | 701,760 | 705,580 | 671,796 | 628,929 | 594,651 | 575,606 | ||||||||||||||
| Total deposits | 3,597,271 | 3,641,845 | 3,699,553 | 3,722,613 | 3,772,092 | 3,814,572 | ||||||||||||||
| Securities sold under agreements to repurchase | 129,892 | 141,818 | 145,050 | 175,705 | 185,471 | 194,283 | ||||||||||||||
| FHLB advances and other borrowings | 238,578 | 209,619 | 111,699 | 114,072 | 113,705 | 121,414 | ||||||||||||||
| Subordinated debt | 97,476 | 97,476 | 97,476 | 97,476 | 97,476 | 97,476 | ||||||||||||||
| Total stockholders’ equity | 719,788 | 729,622 | 708,973 | 691,020 | 682,638 | 689,976 | ||||||||||||||
| Statement of operations data, for the three months ended: | ||||||||||||||||||||
| Interest income | $ | 45,824 | 46,446 | 46,888 | 47,789 | 47,224 | 49,079 | |||||||||||||
| Interest expense | 6,320 | 7,153 | 8,532 | 9,994 | 11,204 | 13,023 | ||||||||||||||
| Net interest income | 39,504 | 39,293 | 38,356 | 37,795 | 36,020 | 36,056 | ||||||||||||||
| Provision for loan losses | 1,034 | 5,439 | 3,632 | 6,587 | 6,139 | 5,172 | ||||||||||||||
| Net interest income after provision for loan losses | 38,470 | 33,854 | 34,724 | 31,208 | 29,881 | 30,884 | ||||||||||||||
| Noninterest income | 9,949 | 9,727 | 10,080 | 9,809 | 8,324 | 8,666 | ||||||||||||||
| Noninterest expense | 35,820 | 34,374 | 35,676 | 34,357 | 34,701 | 36,452 | ||||||||||||||
| Income before taxes | 12,599 | 9,207 | 9,128 | 6,660 | 3,504 | 3,098 | ||||||||||||||
| Income tax expense (benefit) | 4,234 | 1,447 | (16,973 | ) | 288 | - | (697 | ) | ||||||||||||
| Preferred dividends and accretion | 1,159 | 2,079 | 1,564 | 1,529 | 1,492 | 1,547 | ||||||||||||||
| Net income available to common stockholders | $ | 7,206 | 5,681 | 24,537 | 4,843 | 2,011 | 2,248 | |||||||||||||
| Profitability and other ratios: | ||||||||||||||||||||
| Return on avg. assets (1) | 0.60 | % | 0.46 | % | 2.06 | % | 0.40 | % | 0.17 | % | 0.18 | % | ||||||||
| Return on avg. equity (1) | 4.03 | % | 3.09 | % | 13.88 | % | 2.81 | % | 1.19 | % | 1.29 | % | ||||||||
| Net interest margin (1) (2) | 3.74 | % | 3.65 | % | 3.60 | % | 3.55 | % | 3.40 | % | 3.29 | % | ||||||||
| Noninterest income to total revenue (3) | 20.12 | % | 19.84 | % | 20.81 | % | 20.61 | % | 18.77 | % | 19.38 | % | ||||||||
| Noninterest income to avg. assets (1) | 0.83 | % | 0.80 | % | 0.84 | % | 0.82 | % | 0.69 | % | 0.70 | % | ||||||||
| Noninterest exp. to avg. assets (1) | 2.99 | % | 2.81 | % | 2.99 | % | 2.86 | % | 2.89 | % | 2.93 | % | ||||||||
| Efficiency ratio (4) | 72.43 | % | 70.12 | % | 73.66 | % | 72.17 | % | 78.25 | % | 81.51 | % | ||||||||
| Avg. loans to average deposits | 91.18 | % | 89.57 | % | 86.69 | % | 86.27 | % | 84.60 | % | 84.35 | % | ||||||||
| Securities to total assets | 17.53 | % | 18.45 | % | 19.36 | % | 19.16 | % | 20.41 | % | 20.75 | % | ||||||||
|
Average interest-earning assets to average interest-bearing liabilities |
128.43 | % | 128.42 | % | 127.40 | % | 124.90 | % | 122.75 | % | 121.62 | % | ||||||||
| Brokered time deposits to total deposits (16) | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.03 | % | ||||||||
| This information is preliminary and based on company data available at the time of the presentation. | ||||||||||||||||||||
| PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | |||||||||||||||
| SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | |||||||||||||||
| (dollars in thousands) | March | December | September | June | March | December | |||||||||
| 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | ||||||||||
| Asset quality information and ratios: | |||||||||||||||
| Nonperforming assets: | |||||||||||||||
| Nonaccrual loans | $ | 42,852 | 47,855 | 54,640 | 59,727 | 76,368 | 80,863 | ||||||||
| Other real estate (ORE) | 34,019 | 39,714 | 45,500 | 52,395 | 56,000 | 59,608 | |||||||||
| Total nonperforming assets | $ | 76,871 | 87,569 | 100,140 | 112,122 | 132,368 | 140,471 | ||||||||
|
Past due loans over 90 days and still accruing interest |
$ | 821 | 858 | 1,911 | 481 | 1,151 | 138 | ||||||||
| Troubled debt restructurings (5) |
$ |
22,832 |
23,416 | 18,187 | 12,990 | 15,285 | 20,468 | ||||||||
| Net loan charge-offs | $ | 3,630 | 6,335 | 5,732 | 8,605 | 9,726 | 7,146 | ||||||||
| Allowance for loan losses to nonaccrual loans | 166.6 | % | 154.6 | % | 137.0 | % | 128.9 | % | 103.4 | % | 102.1 | % | |||
| As a percentage of total loans: | |||||||||||||||
| Past due accruing loans over 30 days | 0.34 | % | 0.36 | % | 0.28 | % | 0.40 | % | 0.36 | % | 0.30 | % | |||
| Potential problem loans (6) | 3.78 | % | 3.96 | % | 4.04 | % | 4.62 | % | 5.31 | % | 6.95 | % | |||
| Allowance for loan losses | 2.14 | % | 2.25 | % | 2.31 | % | 2.40 | % | 2.46 | % | 2.57 | % | |||
| Nonperforming assets to total loans and ORE | 2.28 | % | 2.66 | % | 3.05 | % | 3.44 | % | 4.04 | % | 4.29 | % | |||
| Nonperforming assets to total assets | 1.60 | % | 1.80 | % | 2.06 | % | 2.32 | % | 2.75 | % | 2.86 | % | |||
|
|
|||||||||||||||
|
Annualized net loan charge-offs year-to-date to avg. loans (7) |
0.45 | % | 0.94 | % | 1.00 | % | 1.14 | % | 1.22 | % | 1.96 | % | |||
| Avg. commercial loan internal risk ratings (6) | 4.7 | 4.6 | 4.7 | 4.8 | 4.8 | 4.8 | |||||||||
| Interest rates and yields: | |||||||||||||||
| Loans | 4.74 | % | 4.74 | % | 4.78 | % | 4.87 | % | 4.88 | % | 4.99 | % | |||
| Securities | 3.31 | % | 3.26 | % | 3.54 | % | 3.67 | % | 3.58 | % | 3.48 | % | |||
| Total earning assets | 4.33 | % | 4.30 | % | 4.38 | % | 4.47 | % | 4.43 | % | 4.45 | % | |||
| Total deposits, including non-interest bearing | 0.63 | % | 0.62 | % | 0.77 | % | 0.90 | % | 1.01 | % | 1.16 | % | |||
| Securities sold under agreements to repurchase | 0.48 | % | 0.50 | % | 0.56 | % | 0.79 | % | 0.83 | % | 0.81 | % | |||
| FHLB advances and other borrowings | 1.03 | % | 1.07 | % | 1.89 | % | 2.42 | % | 2.65 | % | 2.60 | % | |||
| Subordinated debt | 3.00 | % | 2.80 | % | 2.68 | % | 2.73 | % | 2.73 | % | 2.72 | % | |||
| Total deposits and interest-bearing liabilities | 0.63 | % | 0.69 | % | 0.84 | % | 0.98 | % | 1.09 | % | 1.22 | % | |||
| Capital ratios (8): | |||||||||||||||
| Stockholders’ equity to total assets | 15.0 | % | 14.6 | % | 14.9 | % | 14.5 | % | 14.1 | % | 13.8 | % | |||
| Leverage | 11.7 | % | 11.4 | % | 11.9 | % | 11.2 | % | 11.0 | % | 10.7 | % | |||
| Tier one risk-based | 14.0 | % | 13.8 | % | 14.4 | % | 13.9 | % | 13.6 | % | 13.8 | % | |||
| Total risk-based | 15.4 | % | 15.3 | % | 15.9 | % | 15.5 | % | 15.2 | % | 15.4 | % | |||
| Tangible common equity to tangible assets | 8.8 | % | 8.4 | % | 8.2 | % | 7.7 | % | 7.4 | % | 7.1 | % | |||
| Tangible common equity to risk weighted assets | 10.3 | % | 10.3 | % | 10.3 | % | 9.6 | % | 9.1 | % | 9.1 | % | |||
| This information is preliminary and based on company data available at the time of the presentation. | |||||||||||||||
| PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | |||||||||||||||||||
| SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | |||||||||||||||||||
| (dollars in thousands, except per share data) | March | December | September | June | March | December | |||||||||||||
| 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | ||||||||||||||
| Per share data: | |||||||||||||||||||
| Earnings – basic | $ | 0.21 | 0.17 | 0.74 | 0.14 | 0.06 | 0.07 | ||||||||||||
| Earnings – diluted | $ | 0.21 | 0.17 | 0.72 | 0.14 | 0.06 | 0.07 | ||||||||||||
| Book value per common share at quarter end (9) | $ | 18.66 | 18.56 | 18.34 | 17.71 | 17.19 | 17.22 | ||||||||||||
| Tangible common equity per common share | $ | 11.50 | 11.33 | 11.08 | 10.38 | 9.85 | 9.80 | ||||||||||||
| Weighted avg. common shares – basic | 33,811,871 | 33,485,253 | 33,372,980 | 33,454,229 | 33,366,053 | 33,062,533 | |||||||||||||
| Weighted avg. common shares – diluted | 34,423,898 | 34,127,209 | 33,993,914 | 34,095,636 | 34,013,810 | 33,670,890 | |||||||||||||
| Common shares outstanding | 34,616,013 | 34,354,960 | 34,306,927 | 34,136,163 | 34,132,256 | 33,870,380 | |||||||||||||
| Investor information: | |||||||||||||||||||
| Closing sales price | $ | 18.35 | 16.15 | 10.94 | 15.56 | 16.54 | 13.58 | ||||||||||||
| High closing sales price during quarter | $ | 18.44 | 16.65 | 16.21 | 16.82 | 16.60 | 13.74 | ||||||||||||
| Low closing sales price during quarter | $ | 15.25 | 10.28 | 10.52 | 14.15 | 13.55 | 9.27 | ||||||||||||
| Other information: | |||||||||||||||||||
| Gains on sale of loans and loan participations sold: | |||||||||||||||||||
| Mortgage loan sales: | |||||||||||||||||||
| Gross loans sold | $ | 119,023 | 134,794 | 104,716 | 68,506 | 70,981 | 143,793 | ||||||||||||
| Gross fees (10) | $ | 2,465 | 2,610 | 2,166 | 1,380 | 1,129 | 2,610 | ||||||||||||
|
Gross fees as a percentage of mortgage loans originated |
2.07 | % | 1.94 | % | 2.07 | % | 2.01 | % | 1.59 | % | 1.81 | % | |||||||
| Gains (losses) on sales of investment securities, net of OTTI | $ | 114 | 133 | 377 | 610 | (159 | ) | - | |||||||||||
| Brokerage account assets, at quarter-end (11) | $ | 1,176,180 | 1,061,249 | 987,908 | 1,101,000 | 1,110,000 | 1,038,000 | ||||||||||||
| Trust account assets, at quarter-end | $ | 789,614 | 632,608 | 607,668 | 663,304 | 730,000 | 693,000 | ||||||||||||
| Floating rate loans as a percentage of total loans (12) | 32.2 | % | 32.9 | % | 33.3 | % | 34.7 | % | 35.4 | % | 36.9 | % | |||||||
|
Balance of commercial loan participations sold to other banks and serviced by Pinnacle, at quarter end |
$ | 52,155 | 62,209 | 57,045 | 50,797 | 60,784 | 55,632 | ||||||||||||
| Core deposits (13) | $ | 3,405,915 | 3,441,547 | 3,388,692 | 3,437,595 | 3,382,230 | 3,425,571 | ||||||||||||
| Core deposits to total funding (13) | 84.3 | % | 83.7 | % | 82.6 | % | 84.0 | % | 82.4 | % | 81.6 | % | |||||||
| Risk-weighted assets |
$ |
3,826,678 |
3,780,412 | 3,751,479 | 3,693,390 | 3,711,179 | 3,639,095 | ||||||||||||
| Total assets per full-time equivalent employee | $ | 6,442 | 6,511 | 6,580 | 6,538 | 6,373 | 6,384 | ||||||||||||
| Annualized revenues per full-time equivalent employee | $ | 266.8 | 263.2 | 262.5 | 261.3 | 237.7 | 230.4 | ||||||||||||
| Number of employees (full-time equivalent) | 743.5 | 747.0 | 740.0 | 739.0 | 756.5 | 769.0 | |||||||||||||
| Associate retention rate (14) | 93.7 | % | 92.0 | % | 92.6 | % | 89.6 | % | 92.4 | % | 93.5 | % | |||||||
| Selected economic information (in thousands) (15): | |||||||||||||||||||
| Nashville MSA nonfarm employment | 747.8 | 757.3 | 735.5 | 738.3 | 735.5 | 748.1 | |||||||||||||
| Knoxville MSA nonfarm employment | 330.9 | 331.7 | 327.7 | 325.1 | 325.2 | 326.6 | |||||||||||||
| Nashville MSA unemployment | 7.2 | % | 7.2 | % | 8.5 | % | 8.9 | % | 8.3 | % | 8.1 | % | |||||||
| Knoxville MSA unemployment | 6.7 | % | 6.6 | % | 7.9 | % | 8.3 | % | 7.5 | % | 7.3 | % | |||||||
| Nashville residential median home price | $ | 168.5 | 168.5 | 171.6 | 167.1 | 166.8 | 171.0 | ||||||||||||
| Nashville inventory of residential homes for sale (18) | 11.8 | 10.6 | 13.4 | 14.0 | 13.0 | 13.3 | |||||||||||||
| This information is preliminary and based on company data available at the time of the presentation. | |||||||||||||||||||
| PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||
| RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | ||||||||||||||||||||||||
| March | December | September | June | March | December | |||||||||||||||||||
| (dollars in thousands, except per share data) | 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | ||||||||||||||||||
| Reconciliation of certain financial measures: | ||||||||||||||||||||||||
| Tangible assets: | ||||||||||||||||||||||||
| Total assets | $ | 4,789,583 | $ | 4,863,951 | $ | 4,868,905 | $ | 4,831,333 | $ | 4,820,991 | $ | 4,909,004 | ||||||||||||
| Less: Goodwill | (244,072 | ) | (244,076 | ) | (244,082 | ) | (244,083 | ) | (244,083 | ) | (244,090 | ) | ||||||||||||
| Core deposit and other intangibles | (7,156 | ) | (7,842 | ) | (8,558 | ) | (9,273 | ) | (9,989 | ) | (10,705 | ) | ||||||||||||
| Net tangible assets | $ | 4,538,355 | $ | 4,612,033 | $ | 4,616,265 | $ | 4,577,976 | $ | 4,566,919 | $ | 4,654,208 | ||||||||||||
| Tangible equity: | ||||||||||||||||||||||||
| Total stockholders' equity | $ | 718,665 | $ | 710,145 | $ | 724,374 | $ | 699,228 | $ | 681,226 | $ | 677,457 | ||||||||||||
| Less: Goodwill | (244,072 | ) | (244,076 | ) | (244,082 | ) | (244,083 | ) | (244,083 | ) | (244,090 | ) | ||||||||||||
| Core deposit and other intangibles | (7,156 | ) | (7,842 | ) | (8,558 | ) | (9,273 | ) | (9,989 | ) | (10,705 | ) | ||||||||||||
| Net tangible equity | 467,437 | 458,226 | 471,734 | 445,872 | 427,154 | 422,662 | ||||||||||||||||||
| Less: Preferred stock | (69,355 | ) | (69,097 | ) | (91,772 | ) | (91,422 | ) | (91,094 | ) | (90,789 | ) | ||||||||||||
| Net tangible common equity | $ | 398,082 | $ | 389,130 | $ | 379,962 | $ | 354,449 | $ | 336,060 | $ | 331,873 | ||||||||||||
| Ratio of tangible common equity to tangible assets | 8.77 | % | 8.44 | % | 8.23 | % | 7.74 | % | 7.36 | % | 7.13 | % | ||||||||||||
| For the three months ended | ||||||||||||||||||||||||
| March | December | September | June | March | December | |||||||||||||||||||
| 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | |||||||||||||||||||
| Net interest income | $ | 39,504 | $ | 39,293 | $ | 38,356 | $ | 37,795 | $ | 36,020 | $ | 36,056 | ||||||||||||
| Noninterest income | 9,949 | 9,727 | 10,080 | 9,809 | 8,324 | 8,666 | ||||||||||||||||||
| Less: Net gains (losses) on sale of investment securities | 114 | 133 | 377 | 610 | (159 | ) | - | |||||||||||||||||
| Noninterest income excluding the impact of other net gains (losses) on sale of investment securities | $ | 9,834 | $ | 9,594 | $ | 9,703 | $ | 9,199 | $ | 8,483 | $ | 8,666 | ||||||||||||
| Noninterest expense | 35,820 | 34,374 | 35,676 | 34,357 | 34,701 | 36,452 | ||||||||||||||||||
| Other real estate owned expense | 4,676 | 4,193 | 5,079 | 3,826 | 4,334 | 7,874 | ||||||||||||||||||
| Noninterest expense excluding the impact of other real estate owned expense | $ | 31,144 | $ | 30,181 | $ | 30,597 | $ | 30,532 | $ | 30,367 | $ | 28,578 | ||||||||||||
| Adjusted pre-tax pre-provision income (17) | $ | 18,195 | $ | 18,706 | $ | 17,462 | $ | 16,463 | $ | 14,136 | $ | 16,145 | ||||||||||||
| Efficiency Ratio (4) | 72.4 | % | 70.1 | % | 73.7 | % | 72.2 | % | 78.3 | % | 81.5 | % | ||||||||||||
|
Efficiency Ratio excluding the impact of other real estate owned expense (4)
|
63.0 | % | 61.6 | % | 63.2 | % | 64.1 | % | 68.5 | % | 63.9 | % | ||||||||||||
| This information is preliminary and based on company data available at the time of the presentation. | ||||||||||||||||||||||||
| PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | |
| SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | |
|
1. |
Ratios are presented on an annualized basis. |
|
2. |
Net interest margin is the result of net interest income on a tax equivalent basis divided by average interest earning assets. |
|
3. |
Total revenue is equal to the sum of net interest income and noninterest income. |
|
4. |
Efficiency ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income. |
|
5. |
Troubled debt restructurings include loans where the company, as a result of the borrower’s financial difficulties, has granted a credit concession to the borrower (i.e., interest only payments for a significant period of time, extending the maturity of the loan, etc.). All of these loans continue to accrue interest at the contractual rate. |
|
6. |
Average risk ratings are based on an internal loan review system which assigns a numeric value of 1 to 10 to all loans to commercial entities based on their underlying risk characteristics as of the end of each quarter. A “1” risk rating is assigned to credits that exhibit Excellent risk characteristics, “2” exhibit Very Good risk characteristics, “3” Good, “4” Satisfactory, “5” Acceptable or Average, “6” Watch List, “7” Criticized, “8” Classified or Substandard, “9” Doubtful and “10” Loss (which are charged-off immediately). Additionally, loans rated “8” or worse that are not nonperforming or restructured loans are considered potential problem loans. Generally, consumer loans are not subjected to internal risk ratings. |
|
7. |
Annualized net loan charge-offs to average loans ratios are computed by annualizing year-to-date net loan charge-offs and dividing the result by average loans for the year-to-date period. |
|
8. |
Capital ratios are for Pinnacle Financial Partners, Inc. and are defined as follows: |
|
Equity to total assets – End of period total stockholders’ equity as a percentage of end of period assets. |
|
|
Leverage – Tier one capital (pursuant to risk-based capital guidelines) as a percentage of adjusted average assets. |
|
|
Tier one risk-based – Tier one capital (pursuant to risk-based capital guidelines) as a percentage of total risk-weighted assets. |
|
|
Total risk-based – Total capital (pursuant to risk-based capital guidelines) as a percentage of total risk-weighted assets. |
|
|
9. |
Book value per share computed by dividing total stockholders’ equity less preferred stock and common stock warrants by common shares outstanding. |
|
10. |
Amounts are included in the statement of operations in “Gains on loans sold, net”, net of commissions paid on such amounts. |
|
11. |
At fair value, based on information obtained from Pinnacle’s third party broker/dealer for non-FDIC insured financial products and services. |
|
12. |
Floating rate loans are those loans that are eligible for repricing on a daily basis subject to changes in Pinnacle’s prime lending rate or other factors. |
|
13. |
Core deposits include all transaction deposit accounts, money market and savings accounts and all certificates of deposit issued in a denomination of less than $250,000. |
| The ratio noted above represents total core deposits divided by total funding, which includes total deposits, FHLB advances, securities sold under agreements to repurchase, | |
| subordinated indebtedness and all other interest-bearing liabilities. | |
|
14. |
Associate retention rate is computed by dividing the number of associates employed at quarter-end less the number of associates that have resigned in the last 12 months by the number of associates employed at quarter-end. |
|
15. |
Employment and unemployment data is from the US Dept. of Labor Bureau of Labor Statistics. Labor force data is not seasonally adjusted. The most recent quarter data presented is as of the most recent month that data is available as of the release date. The Nashville home data is from the Greater Nashville Association of Realtors. |
|
16. |
Brokered deposits do not include reciprocal balances under the Certificate of Deposit Account Registry Service (CDARS). |
|
17. |
Adjusted pre-tax, pre-provision income excludes the impact of net gains (losses) on investment security sales as well as other real estate owned expenses. |
|
18. |
Represents homes currently listed with MLS in the Nashville MSA. |