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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

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) further deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xv) inability to comply with regulatory capital requirements, including those resulting from recently proposed changes to capital calculation methodologies and required capital maintenance levels; and, (xvi) 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
       
      June 30, 2012     December 31, 2011

ASSETS

Cash and noninterest-bearing due from banks $ 68,291,541 $ 63,015,997
Interest-bearing due from banks 134,491,775 108,422,470
Federal funds sold and other   8,034,508         724,573  
Cash and cash equivalents 210,817,824 172,163,040
 
Securities available-for-sale, at fair value 789,738,398 894,962,246

Securities held-to-maturity (fair value of $770,541 and $2,369,118 and at June 30, 2012 and December 31, 2011, respectively)

754,812 2,329,917
Mortgage loans held-for-sale 36,300,917 35,363,038
 
Loans 3,444,683,416 3,291,350,857
Less allowance for loan losses   (69,614,021 )       (73,974,675 )
Loans, net 3,375,069,395 3,217,376,182
 
Premises and equipment, net 75,525,895 77,127,361
Other investments 45,614,818 44,653,840
Accrued interest receivable 15,176,899 15,243,366
Goodwill 244,065,248 244,076,492
Core deposit and other intangible assets 6,470,132 7,842,267
Other real estate owned 25,450,214 39,714,415
Other assets   106,893,184         113,098,540  
Total assets $ 4,931,877,736       $ 4,863,950,704  
 

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits:
Noninterest-bearing $ 806,401,531 $ 717,378,933
Interest-bearing 696,251,475 637,203,420
Savings and money market accounts 1,559,404,238 1,585,260,139
Time   647,763,107         714,496,974  
Total deposits 3,709,820,351 3,654,339,466
Securities sold under agreements to repurchase 127,622,555 131,591,412
Federal Home Loan Bank advances 270,994,562 226,068,796
Subordinated debt and other borrowings 122,476,000 97,476,000
Accrued interest payable 1,643,008 2,233,330
Other liabilities   40,034,705         42,097,132  
Total liabilities 4,272,591,181 4,153,806,136
 
Stockholders’ equity:

Preferred stock, no par value; 10,000,000 shares authorized; 71,250 shares issued and outstanding at December 31, 2011

- 69,096,828

Common stock, par value $1.00; 90,000,000 shares authorized; 34,675,913 shares and 34,354,960 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively

34,675,913 34,354,960
Common stock warrants 3,348,402 3,348,402
Additional paid-in capital 539,462,366 536,227,537
Retained earnings 64,307,405 49,783,584
Accumulated other comprehensive income, net of taxes   17,492,469         17,333,257  
Stockholders’ equity   659,286,555         710,144,568  
Total liabilities and stockholders’ equity $ 4,931,877,736       $ 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 INCOME – UNAUDITED                        
 
Three Months Ended Six Months Ended
June 30, June 30,
      2012     2011     2012     2011
Interest income:
Loans, including fees $ 39,288,048 $ 38,905,155 $ 77,925,767 $ 77,258,636
Securities
Taxable 4,453,956 6,479,280 9,383,240 12,840,179
Tax-exempt 1,647,852 1,837,811 3,350,998 3,773,699
Federal funds sold and other   563,638       566,874       1,117,577       1,140,880
Total interest income   45,953,494       47,789,120       91,777,582       95,013,394
 
Interest expense:
Deposits 4,298,849 8,306,751 9,126,325 17,730,992
Securities sold under agreements to repurchase 115,450 345,444 271,026 727,013
Federal Home Loan Bank advances and other borrowings   1,354,132       1,341,546       2,691,163       2,739,377
Total interest expense   5,768,431       9,993,741       12,088,514       21,197,382
Net interest income 40,185,063 37,795,379 79,689,068 73,816,012
Provision for loan losses   634,072       6,587,189       1,668,317       12,726,327
Net interest income after provision for loan losses 39,550,991 31,208,190 78,020,751 61,089,685
 
Noninterest income:
Service charges on deposit accounts 2,439,376 2,330,206 4,763,338 4,591,663
Investment services 1,610,883 1,637,426 3,257,661 3,145,512
Insurance sales commissions 1,141,163 1,004,246 2,428,723 2,053,478
Gain on mortgage loans sold, net 1,456,783 789,258 2,951,255 1,398,635
Gain on sale of investment securities, net 98,917 610,302 212,517 451,199
Trust fees 770,239 769,935 1,565,674 1,499,923
Other noninterest income   2,392,485       2,668,041       4,680,016       4,993,061
Total noninterest income   9,909,846       9,809,414       19,859,184       18,133,471
 
Noninterest expense:
Salaries and employee benefits 19,237,178 18,523,531 39,029,744 36,447,153
Equipment and occupancy 5,053,111 5,060,014 10,061,766 10,066,724
Other real estate owned 3,104,276 3,825,608 7,780,340 8,159,726
Marketing and other business development 739,774 766,422 1,525,099 1,520,173
Postage and supplies 615,725 545,097 1,179,019 1,034,974
Amortization of intangibles 686,067 715,905 1,372,134 1,431,809
Other noninterest expense   4,479,403       4,920,766       8,787,138       10,397,612
Total noninterest expense   33,915,534       34,357,343       69,735,240       69,058,171
Income before income taxes 15,545,303 6,660,261 28,144,695 10,164,985
Income tax expense   5,105,659       288,414       9,340,097       288,414
Net income 10,439,644 6,371,847 18,804,598 9,876,571
Preferred dividends 760,349 1,200,694 1,660,868 2,388,194
Accretion on preferred stock discount   1,894,525       327,657       2,153,172       633,631
Net income available to common stockholders $ 7,784,770     $ 4,843,496     $ 14,990,558     $ 6,854,746
 
Per share information:
Basic net income per common share available to common stockholders $0.23     $0.14     $0.44     $0.21
Diluted net income per common share available to common stockholders $0.23     $0.14     $0.44     $0.20
 
Weighted average shares outstanding:
Basic 33,885,779 33,454,229 33,848,825 33,410,385
Diluted 34,470,794 34,095,636 34,447,526 34,054,746
 
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) June March December September June March
      2012   2012   2011   2011   2011   2011
 
Balance sheet data, at quarter end:
Commercial real estate - mortgage loans $ 1,167,068 1,123,690 1,110,962 1,087,333 1,091,283 1,102,533
Consumer real estate - mortgage loans 687,002 688,817 695,745 711,994 708,280 698,693
Construction and land development loans 289,061 281,624 274,248 278,660 282,064 300,697
Commercial and industrial loans 1,227,275 1,180,578 1,145,735 1,095,037 1,058,263 1,047,754
Consumer and other 74,277 63,160 64,661 68,125 67,214 67,753
Total loans 3,444,683 3,337,869 3,291,351 3,241,149 3,207,104 3,217,430
Allowance for loan losses (69,614 ) (71,379 ) (73,975 ) (74,871 ) (76,971 ) (78,988 )
Securities 790,493 839,769 897,292 942,752 925,508 984,200
Total assets 4,931,878 4,789,583 4,863,951 4,868,905 4,831,333 4,820,991
Noninterest-bearing deposits 806,402 756,909 717,379 722,694 662,018 608,428
Total deposits 3,709,820 3,605,291 3,654,339 3,712,650 3,761,520 3,731,883
Securities sold under agreements to repurchase 127,623 118,089 131,591 128,954 124,514 165,132
FHLB advances 270,995 226,032 226,069 161,106 111,191 111,351
Subordinated debt and other borrowings 122,476 97,476 97,476 97,476 97,476 97,476
Total stockholders’ equity 659,287 718,665 710,145 724,374 699,228 681,226
 
Balance sheet data, quarterly averages:
Total loans $ 3,402,671 3,280,030 3,261,972 3,207,213 3,211,591 3,191,076
Securities 818,795 875,509 924,153 939,778 972,750 1,010,344
Total earning assets 4,365,715 4,316,973 4,347,352 4,308,710 4,347,552 4,387,331
Total assets 4,847,583 4,820,951 4,852,311 4,786,485 4,826,731 4,868,745
Noninterest-bearing deposits 755,594 701,760 705,580 671,796 628,929 594,651
Total deposits 3,636,240 3,597,271 3,641,845 3,699,553 3,722,613 3,772,092
Securities sold under agreements to repurchase 130,711 129,892 141,818 145,050 175,705 185,471
FHLB advances 232,606 238,578 209,619 111,699 114,072 113,705
Subordinated debt and other borrowings 101,872 97,476 97,476 97,476 97,476 97,476
Total stockholders’ equity 718,841 719,788 729,622 708,973 691,020 682,638
 
Statement of operations data, for the three months ended:
Interest income $ 45,953 45,824 46,446 46,888 47,789 47,224
Interest expense   5,768     6,320     7,153     8,532     9,994     11,204  
Net interest income 40,185 39,504 39,293 38,356 37,795 36,020
Provision for loan losses   634     1,034     5,439     3,632     6,587     6,139  
Net interest income after provision for loan losses 39,551 38,470 33,854 34,724 31,208 29,881
Noninterest income 9,910 9,949 9,727 10,080 9,809 8,324
Noninterest expense   33,916     35,820     34,374     35,676     34,357     34,701  
Income before taxes 15,545 12,599 9,207 9,128 6,660 3,504
Income tax expense (benefit) 5,106 4,234 1,447 (16,973 ) 288 -
Preferred dividends and accretion   2,655     1,159     2,079     1,564     1,529     1,492  
Net income available to common stockholders $ 7,785     7,206     5,681     24,537     4,843     2,011  
 
Profitability and other ratios:
Return on avg. assets (1) 0.65 % 0.60 % 0.46 % 2.06 % 0.40 % 0.17 %
Return on avg. equity (1) 4.36 % 4.03 % 3.09 % 13.88 % 2.81 % 1.19 %
Net interest margin (1) (2) 3.76 % 3.74 % 3.65 % 3.60 % 3.55 % 3.40 %
Noninterest income to total revenue (3) 19.78 % 20.12 % 19.84 % 20.81 % 20.61 % 18.77 %
Noninterest income to avg. assets (1) 0.82 % 0.83 % 0.80 % 0.84 % 0.82 % 0.69 %
Noninterest exp. to avg. assets (1) 2.81 % 2.99 % 2.81 % 2.99 % 2.86 % 2.89 %
Noninterest expense (excluding ORE) to avg. assets (1) 2.56 % 2.60 % 2.50 % 2.57 % 2.54 % 2.51 %
Efficiency ratio (4) 67.70 % 72.43 % 70.12 % 73.66 % 72.17 % 78.25 %
Avg. loans to average deposits 93.58 % 91.18 % 89.57 % 86.69 % 86.27 % 84.60 %
Securities to total assets 16.03 % 17.53 % 18.45 % 19.36 % 19.16 % 20.41 %
Average interest-earning assets to average
interest-bearing liabilities 130.48 % 128.43 % 128.42 % 127.40 % 124.90 % 122.75 %
 
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
    June 30, 2012   June 30, 2011

Average Balances

  Interest  

Rates/ Yields

 

Average Balances

  Interest  

Rates/ Yields

Interest-earning assets :
Loans (1) $ 3,402,671 $ 39,288 4.65 % $ 3,211,591 $ 38,905 4.87 %
Securities
Taxable 635,678 4,454 2.82 % 779,882 6,479 3.33 %
Tax-exempt (2) 183,117 1,648 4.83 % 192,868 1,838 5.04 %
Federal funds sold and other   144,249     564   1.70 %     163,211     567   1.50 %
Total interest-earning assets 4,365,715 $ 45,954   4.29 % 4,347,552 $ 47,789   4.47 %
Nonearning assets
Intangible assets 250,974 253,803
Other nonearning assets   230,894   225,376
Total assets $ 4,847,583 $ 4,826,731
 
Interest-bearing liabilities:
Interest-bearing deposits:
Interest checking $ 685,353 $ 781 0.46 % $ 592,374 $ 989 0.67 %
Savings and money market 1,540,755 1,967 0.51 % 1,597,216 3,789 0.95 %
Time   654,538     1,551   0.95 %     904,094     3,529   1.57 %
Total interest-bearing deposits 2,880,646 4,299 0.60 % 3,093,684 8,307 1.08 %
Securities sold under agreements to repurchase 130,711 115 0.36 % 175,705 345 0.79 %
Federal Home Loan Bank advances 232,606 616 1.07 % 114,072 679 2.42 %
Subordinated debt and other borrowings   101,872     738   2.91 %     97,476     663   2.73 %
Total interest-bearing liabilities 3,345,835 5,768 1.27 % 3,480,937 9,994 1.15 %
Noninterest-bearing deposits   755,594     -   -       628,929     -   -  
Total deposits and interest-bearing liabilities 4,101,429 $ 5,768   0.57 % 4,109,866 $ 9,994   0.98 %
Other liabilities 27,313 25,845
Stockholders' equity   718,841   691,020
Total liabilities and stockholders' equity $ 4,847,583 $ 4,826,731
Net interest income $ 40,185 $ 37,795
Net interest spread (3) 3.60 % 3.32 %
Net interest margin (4) 3.76 % 3.55 %
 
 
 
(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 June 30, 2012 would have been 3.73% compared to a net interest spread of 3.49% for the quarter ended June 30, 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
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED
             
(dollars in thousands) Six months ended Six months ended
    June 30, 2012   June 30, 2011

Average Balances

  Interest  

Rates/ Yields

 

Average Balances

  Interest  

Rates/ Yields

Interest-earning assets:
Loans (1) $ 3,341,350 $ 77,927 4.70 % $ 3,201,381 $ 77,258 4.87 %
Securities
Taxable 662,162 9,383 2.85 % 795,749 12,840 3.25 %
Tax-exempt (2) 184,990 3,351 4.86 % 195,694 3,774 5.13 %
Federal funds sold and other   152,840     1,117   1.59 %     174,498     1,141   1.42 %
Total interest-earning assets 4,341,342 $ 91,778   4.31 % 4,367,322 $ 95,013   4.45 %
Nonearning assets
Intangible assets 251,321 254,164
Other nonearning assets   241,558   226,131
Total assets $ 4,834,221 $ 4,847,617
 
Interest-bearing liabilities:
Interest-bearing deposits:
Interest checking $ 675,111 $ 1,606 0.48 % $ 592,365 $ 1,944 0.66 %
Savings and money market 1,541,063 4,109 0.54 % 1,588,320 7,850 1.00 %
Time   671,810     3,412   1.02 %     954,646     7,937   1.68 %
Total interest-bearing deposits 2,887,984 9,127 0.64 % 3,135,331 17,731 1.14 %
Securities sold under agreements to repurchase 130,301 271 180,561 727 0.81 %
Federal Home Loan Bank advances 235,591 1,226 1.05 % 113,889 1,420 2.52 %
Subordinated debt and other borrowings   99,674     1,465   2.96 %     97,476     1,319   2.73 %
Total interest-bearing liabilities 3,353,550 12,089 1.28 % 3,527,257 21,197 1.21 %
Noninterest-bearing deposits   728,724     -   -       611,885     -   -  
Total deposits and interest-bearing liabilities 4,082,274 $ 12,089   0.60 % 4,139,142 $ 21,197   1.03 %
Other liabilities 32,633 21,620
Stockholders' equity   719,314   686,855
Total liabilities and stockholders' equity $ 4,834,221 $ 4,847,617
Net interest income $ 79,689 $ 73,816
Net interest spread (3) 3.59 % 3.24 %
Net interest margin (4) 3.75 % 3.47 %
 
 
 
(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-earning 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 six months ended June 30, 2012 would have been 3.72% compared to a net interest spread of 3.42% for the six months ended June 30, 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) June March December September June March
    2012   2012   2011   2011   2011   2011
 
Asset quality information and ratios:
Nonperforming assets:
Nonaccrual loans $ 40,822 42,852 47,855 54,640 59,727 76,368
Other real estate (ORE)   25,450     34,019     39,714     45,500     52,395     56,000  
Total nonperforming assets $ 66,272     76,871     87,569     100,140     112,122     132,368  
Past due loans over 90 days and still
accruing interest $ - 821 858 1,911 481 1,151
Troubled debt restructurings (5) $ 26,626 22,832 23,416 18,187 12,990 15,285
 
Net loan charge-offs $ 2,399 3,630 6,335 5,732 8,605 9,726
Allowance for loan losses to nonaccrual loans 170.5 % 166.6 % 154.6 % 137.0 % 128.9 % 103.4 %
As a percentage of total loans:
Past due accruing loans over 30 days 0.21 % 0.34 % 0.36 % 0.28 % 0.40 % 0.36 %
Potential problem loans (6) 3.21 % 3.51 % 3.96 % 4.04 % 4.62 % 5.31 %
Allowance for loan losses 2.02 % 2.14 % 2.25 % 2.31 % 2.40 % 2.46 %
Nonperforming assets to total loans and ORE 1.91 % 2.28 % 2.66 % 3.05 % 3.44 % 4.04 %
Nonperforming assets to total assets 1.34 % 1.60 % 1.80 % 2.06 % 2.32 % 2.75 %

Annualized net loan charge-offs year-to-date to avg. loans (7)

0.36 % 0.45 % 0.94 % 1.00 % 1.14 % 1.22 %
Avg. commercial loan internal risk ratings (6) 4.6 4.7 4.6 4.7 4.8 4.8
 
Interest rates and yields:
Loans 4.65 % 4.74 % 4.74 % 4.78 % 4.87 % 4.88 %
Securities 3.27 % 3.31 % 3.26 % 3.54 % 3.67 % 3.58 %
Total earning assets 4.29 % 4.33 % 4.30 % 4.38 % 4.47 % 4.43 %
Total deposits, including non-interest bearing 0.47 % 0.63 % 0.62 % 0.77 % 0.90 % 1.01 %
Securities sold under agreements to repurchase 0.36 % 0.48 % 0.50 % 0.56 % 0.79 % 0.83 %
FHLB advances and other borrowings 1.07 % 1.03 % 1.07 % 1.89 % 2.42 % 2.65 %
Subordinated debt 2.91 % 3.00 % 2.80 % 2.68 % 2.73 % 2.73 %
Total deposits and interest-bearing liabilities 0.57 % 0.63 % 0.69 % 0.84 % 0.98 % 1.09 %
 
Capital ratios (8):
Stockholders’ equity to total assets 13.4 % 15.0 % 14.6 % 14.9 % 14.5 % 14.1 %
Leverage 10.3 % 11.7 % 11.4 % 11.9 % 11.2 % 11.0 %
Tier one risk-based 12.0 % 14.0 % 13.8 % 14.4 % 13.9 % 13.6 %
Total risk-based 13.5 % 15.4 % 15.3 % 15.9 % 15.5 % 15.2 %
Tier one common equity to risk weighted assets 10.0 % 10.1 % 9.9 % 9.8 % 9.2 % 9.0 %
Tangible common equity to tangible assets 8.7 % 8.8 % 8.4 % 8.2 % 7.7 % 7.4 %
Tangible common equity to risk weighted assets 10.3 % 10.4 % 10.3 % 10.3 % 9.6 % 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) June March December September June March
    2012     2012     2011     2011     2011     2011
 
Per share data:
Earnings – basic $ 0.23 0.21 0.17 0.74 0.14 0.06
Earnings – diluted $ 0.23 0.21 0.17 0.72 0.14 0.06
Book value per common share at quarter end (9) $ 18.92 18.66 18.56 18.34 17.71 17.19
Tangible common equity per common share $ 11.79 11.50 11.33 11.08 10.38 9.85
 
Weighted avg. common shares – basic 33,885,779 33,811,871 33,485,253 33,372,980 33,454,229 33,366,053
Weighted avg. common shares – diluted 34,470,794 34,423,898 34,127,209 33,993,914 34,095,636 34,013,810
Common shares outstanding 34,675,913 34,616,013 34,354,960 34,306,927 34,136,163 34,132,256
 
Investor information:
Closing sales price $ 19.51 18.35 16.15 10.94 15.56 16.54
High closing sales price during quarter $ 19.51 18.44 16.65 16.21 16.82 16.60
Low closing sales price during quarter $ 16.64 15.25 10.28 10.52 14.15 13.55
 
Other information:
Gains on mortgage loans sold:
Mortgage loan sales:
Gross loans sold $ 105,365 119,023 134,794 104,716 68,506 70,981
Gross fees (10) $ 2,511 2,608 2,766 2,166 1,380 1,129

Gross fees as a percentage of mortgage loans originated

2.38 % 2.19 % 2.05 % 2.07 % 2.01 % 1.59 %
Gains (losses) on sales of investment securities, net of OTTI $ 99 114 133 377 610 (159 )
Brokerage account assets, at quarter-end (11) $ 1,191,259 1,176,180 1,061,249 987,908 1,101,000 1,110,000
Trust account assets, at quarter-end $ 803,904 789,614 632,608 607,668 663,304 730,000
Floating rate loans as a percentage of total loans (12) 31.3 % 32.2 % 32.9 % 33.3 % 34.7 % 35.4 %

Balance of commercial loan participations sold to other banks and serviced by Pinnacle, at quarter end

$ 54,598 52,155 62,209 57,045 50,797 60,784
Core deposits (13) $

3,523,657

3,405,915 3,441,547 3,388,692 3,437,595 3,382,230
Core deposits to total funding (13) 83.3 % 84.3 % 83.7 % 82.6 % 84.0 % 82.4 %
Risk-weighted assets $ 3,961,679 3,826,678 3,780,412 3,751,479 3,693,390 3,711,179
Total assets per full-time equivalent employee $ 6,724 6,442 6,511 6,580 6,538 6,373
Annualized revenues per full-time equivalent employee $ 273.9 266.8 263.2 262.5 261.3 237.7
Number of employees (full-time equivalent) 733.5 743.5 747.0 740.0 739.0 756.5
Associate retention rate (14) 94.0 % 93.7 % 92.0 % 92.6 % 89.6 % 92.4 %
 
Selected economic information (in thousands) (15):
Nashville MSA nonfarm employment 764.7 747.8 757.3 735.5 738.3 735.5
Knoxville MSA nonfarm employment 338.9 330.9 331.7 327.7 325.1 325.2
Nashville MSA unemployment 6.8 % 7.2 % 7.2 % 8.5 % 8.9 % 8.3 %
Knoxville MSA unemployment 6.4 % 6.7 % 6.6 % 7.9 % 8.3 % 7.5 %
Nashville residential median home price $ 175.5 168.5 168.5 171.6 167.1 166.8
Nashville inventory of residential homes for sale (17) 11.8 11.8 10.6 13.4 14.0 13.0
 
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        
 
June March December September June March
(dollars in thousands , except per share data)   2012   2012   2011   2011   2011   2011
Reconciliation of certain financial measures:
Tangible assets:
Total assets $ 4,931,878 $ 4,789,583 $ 4,863,951 $ 4,868,905 $ 4,831,333 $ 4,820,991
Less: Goodwill (244,065 ) (244,072 ) (244,076 ) (244,082 ) (244,083 ) (244,083 )
Core deposit and other intangibles  

(6,470

)     (7,156 )     (7,842 )     (8,558 )     (9,273 )     (9,989 )

Net tangible assets

$

4,681,343

    $ 4,538,355     $ 4,612,033     $ 4,616,265     $ 4,577,976     $ 4,566,919  
 
Tangible equity:
Total stockholders' equity $ 659,287 $ 718,665 $ 710,145 $ 724,374 $ 699,228 $ 681,226
Less: Goodwill (244,065 ) (244,072 ) (244,076 ) (244,082 ) (244,083 ) (244,083 )
Core deposit and other intangibles   (6,470 )     (7,156 )     (7,842 )     (8,558 )     (9,273 )     (9,989 )
Net tangible equity

408,752

467,437 458,226 471,734 445,872 427,154
Less: Preferred stock   -       (69,355 )     (69,097 )     (91,772 )     (91,422 )     (91,094 )
Net tangible common equity $

408,752

    $ 398,082     $ 389,130     $ 379,962     $ 354,449     $ 336,060  
 
Ratio of tangible common equity to tangible assets   8.73 %     8.77 %     8.44 %     8.23 %     7.74 %     7.36 %
 
For the three months ended
June March December September June March
2012   2012   2011   2011   2011   2011
 
Net interest income $ 40,185 $ 39,504 $ 39,293 $ 38,356 $ 37,795 $ 36,020
 
Noninterest income 9,910 9,949 9,727 10,080 9,809 8,324
Less: Net gains (losses) on sale of investment securities   99       114       133       377       610       (159 )
Noninterest income excluding the impact of other net gains (losses) on sale of investment securities $ 9,811     $ 9,835     $ 9,594     $ 9,703     $ 9,199     $ 8,483  
 
Noninterest expense

33,915

35,820 34,374 35,676 34,357 34,701
Other real estate owned expense   3,104       4,676       4,193       5,079       3,826       4,334  
Noninterest expense excluding the impact of other real estate owned expense $

30,811

    $ 31,144     $ 30,181     $ 30,597     $ 30,532     $ 30,367  
 
Adjusted pre-tax pre-provision income (16) $ 19,185     $ 18,195     $ 18,706     $ 17,462     $ 16,463     $ 14,136  
 
 
Efficiency Ratio (4) 67.7 % 72.4 % 70.1 % 73.7 % 72.2 % 78.3 %
 

Efficiency Ratio excluding the impact of other real estate owned expense (4)

61.5 % 63.0 % 61.6 % 63.2 % 64.1 % 68.5 %
 
 
Noninterest expense $

33,915

$ 35,820 $ 34,374 $ 35,676 $ 34,357 $ 34,701
Other real estate owned expense   3,104       4,676       4,193       5,079       3,826       4,334  
Noninterest expense excluding the impact of other real estate owned expense $

30,811

    $ 31,144     $ 30,181     $ 30,597     $ 30,532     $ 30,367  
 
Total average assets   4,847,583       4,820,951       4,852,311       4,786,485       4,826,731       4,868,745  
 
Noninterest expense (excluding ORE) to avg. assets (1) 2.56 % 2.60 % 2.50 % 2.57 % 2.54 % 2.51 %
 
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.

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.

17.

Represents homes currently listed with MLS in the Nashville MSA.





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