This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Pinnacle Financial Reports Diluted EPS Of $0.23 For The Second Quarter Of 2012, Up 64 Percent Over Same Quarter Last Year

Stocks in this article: PNFP

The following is a summary of the activity in various nonperforming asset and troubled debt restructuring categories for the quarter ended June 30, 2012:

(in thousands)   Balances

March 31, 2012

 

Payments, Sales and Reductions

  Foreclosures   Inflows   Balances

June 30, 2012

Troubled debt restructurings:        
Commercial real estate – mortgage $ 15,320 (1,791 ) - 5,511 $ 19,040
Consumer real estate – mortgage 6,088 (362 ) - 350 6,076
Construction and land development 75 (1 ) - 360 434
Commercial and industrial 1,222 (329 ) - 59 952
Consumer and other   127   (3 )   -     -     124
Totals   22,832   (2,486 )   -     6,280     26,626
Nonperforming loans:
Commercial real estate – mortgage 16,530 (3,886 ) (213 ) 1,170 13,601
Consumer real estate – mortgage 11,586 (2,105 ) (2,141 ) 8,342 15,682
Construction and land development 6,979 (1,178 ) (175 ) 148 5,774
Commercial and industrial 7,242 (4,050 ) - 2,140 5,332
Consumer and other   515   (221 )   -     139     433
Totals   42,852   (11,440 )   (2,529 )   11,939     40,822
Other real estate:
Residential construction and development 12,265 (3,462 ) 27 - 8,829
Commercial construction and development 15,960 (4,258 ) 148 - 11,850
Other   5,794   (3,377 )   2,354     -     4,771
Totals   34,019   (11,097 )   2,529     -     25,450
Total nonperforming assets and troubled debt restructurings $ 99,703   (25,023 )   -     18,219   $ 92,898

OTHER SECOND QUARTER 2012 HIGHLIGHTS:

  • Improving Balance Sheet Composition
    • The firm has continued to reposition its deposit base so that average balances for noninterest-bearing demand, interest checking, savings and money market accounts increased to $3.06 billion for the second quarter of 2012 from $2.91 billion for the first quarter of 2012, or 2.4 percent on a linked-quarter basis. Average balances for higher-cost time deposits decreased from $689 million to $655 million, or 5.0 percent, during the same time period. In comparison to the prior year’s quarter, average balances for noninterest-bearing demand, interest checking, savings and money market accounts increased 5.8 percent, while average balances for higher-cost time deposits decreased 27.6 percent.
    • As a result of the current bond market and growing loan demand, the firm has reduced the size of its investment portfolio by $107 million since the beginning of 2012, primarily through bond maturities and calls.
    • At June 30, 2012, Pinnacle’s ratio of tangible common stockholders’ equity to tangible assets was 8.7 percent, compared to 7.7 percent at June 30, 2011, and 8.8 percent at March 31, 2012.
    • At June 30, 2012, Pinnacle’s total risk-based capital ratio was 13.5 percent, compared to 15.5 percent at June 30, 2011, and 15.4 percent at March 31, 2012. The reduction in this ratio was primarily attributable to the firm’s recent redemption of all of the remaining outstanding preferred shares issued in connection with its participation in the U.S. Treasury’s TARP capital purchase program (CPP).

“During the second quarter of 2012, we redeemed all of the remaining outstanding preferred shares previously issued to the U.S. Treasury,” said Harold R. Carpenter, Pinnacle’s chief financial officer. “This redemption, and our subsequent agreement with the Treasury to repurchase the accompanying common stock warrants during the third quarter of 2012, will officially end our participation in the CPP. As we had anticipated, we were able to redeem our remaining outstanding TARP preferred shares with no incremental common share dilution using a combination of available cash and borrowings under a new $25 million credit facility.”

  • Operating results
    • Net income available to common stockholders for the second quarter of 2012 was $7.8 million, compared to the prior year’s second quarter net income available to common stockholders of $4.8 million. First quarter 2012 net income available to common stockholders totaled $7.2 million.
    • Net interest income for the quarter ended June 30, 2012, was $40.2 million, compared to $39.5 million in the first quarter of 2012. Net interest income for the second quarter of 2011 was $37.8 million. Net interest income for the second quarter of 2012 was at its highest quarterly level since the firm’s founding.
    • Noninterest income for the quarter ended June 30, 2012, was $9.9 million, compared to $9.9 million for the first quarter of 2012 and $9.8 million for the same quarter last year. Excluding the impact of net securities gains, noninterest income was up 6.7 percent over the same quarter last year.

      • Wealth management revenues, which include investment services, trust services and insurance, were $3.5 million during the second quarter of 2012, an increase of 3.2 percent over the same period last year. The increase was due primarily to additional emphasis on internal referral programs and the addition of several new associates over the past two years.
      • Gains on mortgage loans sold, net of commissions, were $1.5 million during the second quarter of 2012, compared to $1.5 million during the first quarter of 2012 and $0.8 million during the second quarter of 2011.

“Our second quarter 2012 net interest margin increased modestly to 3.76 percent,” Carpenter said. “Much of our margin expansion in recent quarters has been largely attributable to reductions in our cost of funds. We continue to believe we have additional opportunities to reduce our funding costs in future quarters. However, like others in our industry, we are experiencing continued pressure on our loan yields, and we expect expansion in our net interest margin will be challenging going forward. Nevertheless, we expect that loan growth should positively influence our net interest income results over the next several quarters and result in further revenue growth this year.”

  • Noninterest and income tax expense
    • Noninterest expense for the quarter ended June 30, 2012, was $33.9 million, compared to $34.4 million in the second quarter of 2011 and $35.8 million in the first quarter of 2012.
    • Included in noninterest expense for the second quarter of 2012 was $3.1 million in other real estate expenses, compared to $3.8 million in the second quarter of 2011 and $4.7 million in the first quarter of 2012.
    • Income tax expense was $5.1 million for the second quarter of 2012, compared to $288,000 in the second quarter of 2011. The projected effective tax rate for 2012 is approximately 33 percent.

Included in the other real estate expense for the quarter was $2.4 million of additional write downs of existing OREO balances based on updated appraisals. The firm also recorded $399,000 in net losses related to the disposition of $11.1 million of other real estate. Noninterest expense excluding the impact of OREO expenses was approximately $30.8 million in the second quarter of 2012, compared to $31.1 million in the first quarter of 2012 and $30.5 million in the second quarter of 2011.

3 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs