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
TheStreet Open House

Pinnacle Financial Reports Diluted EPS Of $0.33, A Linked Quarter Increase Of 43.5%, For The Third Quarter Of 2012

Stocks in this article: PNFP

Carpenter said that management continues to be pleased with the progress toward increasing the operating leverage of the firm, noting that the efficiency ratio had improved to 65.4 percent, or 60.7 percent, excluding the impact of other real estate expenses. He stated the quarterly expense run rate for the fourth quarter of 2012 should remain consistent with that of the third quarter.

WEBCAST AND CONFERENCE CALL INFORMATION

Pinnacle will host a webcast and conference call at 8:30 a.m. (CDT) on Oct. 17, 2012, to discuss third 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 has consistently been named a “Best Place to Work” by several publications. Pinnacle has the largest market share among businesses in Nashville with annual sales from $1 to $500 million, according to Greenwich Associates.

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 $4.8 billion in assets at Sept. 30, 2012. At Sept. 30, 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) 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
 
      September 30, 2012     December 31, 2011

ASSETS

       
Cash and noninterest-bearing due from banks $ 70,730,026 $ 63,015,997
Interest-bearing due from banks 76,678,278 108,422,470
Federal funds sold and other   730,583         724,573  
Cash and cash equivalents 148,138,887 172,163,040
 
Securities available-for-sale, at fair value 738,705,182 894,962,246

Securities held-to-maturity (fair value of $586,813 and $2,369,118 and at September 30, 2012 and December 31, 2011, respectively)

574,843 2,329,917
Mortgage loans held-for-sale 39,245,780 35,363,038
 
Loans 3,525,164,123 3,291,350,857
Less allowance for loan losses   (69,092,075 )       (73,974,675 )
Loans, net 3,456,072,048 3,217,376,182
 
Premises and equipment, net 74,536,714 77,127,361
Other investments 25,871,346 44,653,840
Accrued interest receivable 15,774,555 15,243,366
Goodwill 244,044,967 244,076,492
Core deposit and other intangible assets 5,786,703 7,842,267
Other real estate owned 21,816,528 39,714,415
Other assets   100,818,517         113,098,540  
Total assets $ 4,871,386,070       $ 4,863,950,704  
 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Deposits:
Noninterest-bearing $ 844,480,484 $ 717,378,933
Interest-bearing 673,083,495 637,203,420
Savings and money market accounts 1,606,698,275 1,585,260,139
Time   595,024,885         714,496,974  
Total deposits 3,719,287,139 3,654,339,466
Securities sold under agreements to repurchase 134,786,974 131,591,412
Federal Home Loan Bank advances 190,887,031 226,068,796
Subordinated debt and other borrowings 106,783,292 97,476,000
Accrued interest payable 1,570,473 2,233,330
Other liabilities   45,246,690         42,097,132  
Total liabilities 4,198,561,599 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; 34,691,659 shares and 34,354,960 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively

34,691,659 34,354,960
Common stock warrants - 3,348,402
Additional paid-in capital 543,042,267 536,227,537
Retained earnings 75,656,530 49,783,584
Accumulated other comprehensive income, net of taxes   19,434,015         17,333,257  
Stockholders’ equity   672,824,471         710,144,568  
Total liabilities and stockholders’ equity $ 4,871,386,070       $ 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 Nine Months Ended
September 30, September 30,
      2012     2011     2012     2011
Interest income:
Loans, including fees $ 40,405,396 $ 38,571,893 $ 118,331,163 $ 115,830,529
Securities
Taxable 3,973,717 5,952,599 13,356,957 18,792,778
Tax-exempt 1,621,541 1,819,642 4,972,539 5,593,341
Federal funds sold and other   440,254         543,496         1,557,831       1,684,376  
Total interest income   46,440,908         46,887,630         138,218,490       141,901,024  
 
Interest expense:
Deposits 3,986,328 7,138,053 13,112,653 24,869,045
Securities sold under agreements to repurchase 99,379 204,107 370,405 931,120
Federal Home Loan Bank advances and other borrowings   1,422,845         1,189,742         4,114,008       3,929,119  
Total interest expense   5,508,552         8,531,902         17,597,066       29,729,284  
Net interest income 40,932,356 38,355,728 120,621,424 112,171,740
Provision for loan losses   1,412,575         3,632,440         3,080,892       16,358,767  
Net interest income after provision for loan losses 39,519,781 34,723,288 117,540,532 95,812,973
 
Noninterest income:
Service charges on deposit accounts 2,531,707 2,361,803 7,295,045 6,953,466
Investment services 1,676,601 1,698,886 4,934,262 4,844,398
Insurance sales commissions 987,222 1,001,716 3,415,945 3,055,194
Gain on mortgage loans sold, net 1,978,935 1,295,278 4,930,190 2,693,913
(Loss) gain on sale of investment securities, net (49,784 ) 376,509 162,733 827,708
Trust fees 767,042 753,551 2,332,716 2,253,474
Other noninterest income   2,537,863         2,592,170         7,217,879       7,585,231  
Total noninterest income   10,429,586         10,079,913         30,288,770       28,213,384  
 
Noninterest expense:
Salaries and employee benefits 19,470,535 19,015,217 58,500,279 55,462,370
Equipment and occupancy 5,156,131 4,942,917 15,217,897 15,009,641
Other real estate expense 2,399,232 5,079,127 10,179,572 13,238,853
Marketing and other business development 834,661 751,094 2,359,760 2,271,267
Postage and supplies 637,906 509,279 1,816,925 1,544,253
Amortization of intangibles 683,430 715,514 2,055,564 2,147,323
Other noninterest expense   4,396,465         4,662,073         13,183,603       15,059,685  
Total noninterest expense   33,578,360         35,675,221         103,313,600       104,733,392  
Income before income taxes 16,371,007 9,127,980 44,515,702 19,292,965
Income tax expense (benefit)   5,021,882         (16,973,019 )       14,361,979       (16,684,605 )
Net income 11,349,125 26,100,999 30,153,723 35,977,570
Preferred dividends - 1,213,889 1,660,868 3,602,083
Accretion on preferred stock discount   -         349,817         2,153,172       983,448  
Net income available to common stockholders $ 11,349,125       $ 24,537,293       $ 26,339,683     $ 31,392,039  
 
Per share information:
Basic net income per common share available to common stockholders $ 0.33       $ 0.74       $ 0.78     $ 0.94  
Diluted net income per common share available to common stockholders $ 0.33       $ 0.72       $ 0.76     $ 0.92  
 
Weighted average shares outstanding:
Basic 33,939,248 33,372,980 33,879,186 33,398,029
Diluted 34,523,076 33,993,914 34,473,895 34,037,739
 
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
                       
                                     

 

September June March December September June

(dollars in thousands)

    2012     2012     2012     2011     2011     2011
 
Balance sheet data, at quarter end:
Commercial real estate - mortgage loans $ 1,167,136 1,167,068 1,123,690 1,110,962 1,087,333 1,091,283
Consumer real estate - mortgage loans 680,890 687,002 688,817 695,745 711,994 708,280
Construction and land development loans 312,788 289,061 281,624 274,248 278,660 282,064
Commercial and industrial loans 1,279,050 1,227,275 1,180,578 1,145,735 1,095,037 1,058,263
Consumer and other 85,300 74,277 63,160 64,661 68,125 67,214
Total loans 3,525,164 3,444,683 3,337,869 3,291,351 3,241,149 3,207,104
Allowance for loan losses (69,092 ) (69,614 ) (71,379 ) (73,975 ) (74,871 ) (76,971 )
Securities 739,280 790,493 839,769 897,292 942,752 925,508
Total assets 4,871,386 4,931,878 4,789,583 4,863,951 4,868,905 4,831,333
Noninterest-bearing deposits 844,480 806,402 756,909 717,379 722,694 662,018
Total deposits 3,719,287 3,709,820 3,605,291 3,654,339 3,712,650 3,761,520
Securities sold under agreements to repurchase 134,787 127,623 118,089 131,591 128,954 124,514
FHLB advances 190,887 270,995 226,032 226,069 161,106 111,191
Subordinated debt and other borrowings 106,783 122,476 97,476 97,476 97,476 97,476
Total stockholders’ equity 672,824 659,287 718,665 710,145 724,374 699,228
 
Balance sheet data, quarterly averages:
Total loans $ 3,488,736 3,402,671 3,280,030 3,261,972 3,207,213 3,211,591
Securities 766,547 818,795 875,509 924,153 939,778 972,750
Total earning assets 4,379,742 4,365,715 4,316,973 4,347,352 4,308,710 4,347,552
Total assets 4,860,394 4,847,583 4,820,951 4,852,311 4,786,485 4,826,731
Noninterest-bearing deposits 799,508 755,594 701,760 705,580 671,796 628,929
Total deposits 3,705,672 3,636,240 3,597,271 3,641,845 3,699,553 3,722,613
Securities sold under agreements to repurchase 136,918 130,711 129,892 141,818 145,050 175,705
FHLB advances 214,271 232,606 238,578 209,619 111,699 114,072
Subordinated debt and other borrowings 112,406 101,872 97,476 97,476 97,476 97,476

Total stockholders’ equity

669,673 718,841 719,788 729,622 708,973 691,020
 
Statement of operations data, for the three months ended:
Interest income $ 46,441 45,953 45,824 46,446 46,888 47,789
Interest expense   5,509       5,768       6,320       7,153       8,532       9,994  
Net interest income 40,932 40,185 39,504 39,293 38,356 37,795
Provision for loan losses   1,413       634       1,034       5,439       3,632       6,587  
Net interest income after provision for loan losses 39,519 39,551 38,470 33,854 34,724 31,208
Noninterest income 10,430 9,910 9,949 9,727 10,080 9,809
Noninterest expense   33,578       33,916       35,820       34,374       35,676       34,357  
Income before taxes 16,371 15,545 12,599 9,207 9,128 6,660
Income tax expense (benefit) 5,022 5,106 4,234 1,447 (16,973 ) 288
Preferred dividends and accretion   -       2,655       1,159       2,079       1,564       1,529  
Net income available to common stockholders $ 11,349       7,785       7,206       5,681       24,537       4,843  
 
Profitability and other ratios:

Return on avg. assets (1)

0.93 % 0.65 % 0.60 % 0.46 % 2.06 % 0.40 %
Return on avg. equity (1) 6.74 % 4.36 % 4.03 % 3.09 % 13.88 % 2.81 %
Return on avg. tangible equity (1) 10.76 % 7.58 % 6.13 % 4.93 % 20.69 % 4.32 %
Net interest margin (1) (2) 3.78 % 3.76 % 3.74 % 3.65 % 3.60 % 3.55 %
Noninterest income to total revenue (3) 20.31 % 19.78 % 20.12 % 19.84 % 20.81 % 20.61 %
Noninterest income to avg. assets (1) 0.85 % 0.82 % 0.83 % 0.80 % 0.84 % 0.82 %

Noninterest exp. to avg. assets (1)

2.75 % 2.81 % 2.99 % 2.81 % 2.99 % 2.86 %
Noninterest expense (excluding ORE) to avg. assets (1) 2.55 % 2.56 % 2.60 % 2.50 % 2.57 % 2.54 %
Efficiency ratio (4) 65.38 % 67.70 % 72.43 % 70.12 % 73.66 % 72.17 %
Avg. loans to average deposits 94.15 % 93.58 % 91.18 % 89.57 % 86.69 % 86.27 %
Securities to total assets 15.18 % 16.03 % 17.53 % 18.45 % 19.36 % 19.16 %
 
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
                       

 

Three months ended Three months ended

(dollars in thousands)

    September 30, 2012     September 30, 2011

Average Balances

    Interest    

Rates/ Yields

   

Average Balances

    Interest     Rates/ Yields
Interest-earning assets :
Loans (1) $ 3,488,736 $ 40,405 4.62 % $ 3,207,213 $ 38,572 4.78 %
Securities
Taxable 585,782 3,974 2.70 % 747,784 5,953 3.16 %
Tax-exempt (2) 180,765 1,622 4.77 % 191,994 1,820 5.02 %
Federal funds sold and other   124,459       440     1.55 %       161,719       543     1.44 %
Total interest-earning assets 4,379,742 $ 46,441     4.28 % 4,308,710 $ 46,888     4.38 %
Nonearning assets
Intangible assets 250,274 253,102
Other nonearning assets   230,378   224,673
Total assets $ 4,860,394 $ 4,786,485
 
Interest-bearing liabilities:
Interest-bearing deposits:
Interest checking $ 672,057 $ 637 0.38 % $ 564,077 $ 821 0.58 %
Savings and money market 1,606,189 1,959 0.49 % 1,622,200 3,299 0.81 %
Time   627,918       1,390     0.88 %       841,480       3,018     1.42 %
Total interest-bearing deposits 2,906,164 3,986 0.55 % 3,027,757 7,138 0.94 %
Securities sold under agreements to repurchase 136,918 99 0.29 % 145,050 204 0.56 %
Federal Home Loan Bank advances 214,271 621 1.15 % 111,699 532 1.89 %
Subordinated debt and other borrowings   112,406       802     2.84 %       97,476       658     2.68 %
Total interest-bearing liabilities 3,369,759 5,508 0.65 % 3,381,982 8,532 1.00 %
Noninterest-bearing deposits   799,508       -     -         671,796       -     -  
Total deposits and interest-bearing liabilities 4,169,267 $ 5,508     0.53 % 4,053,778 $ 8,532     0.84 %
Other liabilities 21,454 23,734

Stockholders equity

  669,673   708,973

Total liabilities and stockholders’ equity

$ 4,860,394 $ 4,786,485
Net interest income $ 40,933 $ 38,356
Net interest spread (3) 3.63 % 3.38 %
Net interest margin (4) 3.78 % 3.60 %
 
 
(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 September 30, 2012 would have been 3.76% compared to a net interest spread of 3.54% for the quarter ended September 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
                       

 

Nine months ended Nine months ended

(dollars in thousands)

    September 30, 2012     September 30, 2011

Average Balances

    Interest     Rates/ Yields    

Average Balances

    Interest     Rates/ Yields
Interest-earning assets:
Loans (1) $ 3,390,838 $ 118,331 4.67 % $ 3,203,346 $ 115,831 4.84 %
Securities
Taxable 636,516 13,357 2.80 % 779,585 18,793 3.22 %
Tax-exempt (2) 183,572 4,973 4.83 % 194,447 5,593 5.13 %
Federal funds sold and other   143,311       1,558     1.58 %       170,192       1,684     1.43 %
Total interest-earning assets 4,354,237 $ 138,219     4.30 % 4,347,570 $ 141,901     4.43 %
Nonearning assets
Intangible assets 250,969 253,806
Other nonearning assets   237,805   225,640
Total assets $ 4,843,011 $ 4,827,016
 
Interest-bearing liabilities:
Interest-bearing deposits:
Interest checking $ 674,086 $ 2,243 0.44 % $ 582,832 $ 2,765 0.63 %
Savings and money market 1,562,930 6,068 0.52 % 1,599,737 11,149 0.93 %
Time   657,073       4,802     0.98 %       916,510       10,955     1.60 %
Total interest-bearing deposits 2,894,089 13,113 0.61 % 3,099,079 24,869 1.07 %
Securities sold under agreements to repurchase 132,523 370 0.37 % 168,594 931 0.74 %
Federal Home Loan Bank advances 228,378 1,847 1.08 % 112,181 1,952 2.32 %
Subordinated debt and other borrowings   104,003       2,267     2.91 %       98,446       1,977     2.69 %
Total interest-bearing liabilities 3,358,993 17,597 0.70 % 3,478,300 29,729 1.14 %
Noninterest-bearing deposits   752,491       -     -         632,075       -     -  
Total deposits and interest-bearing liabilities 4,111,484 $ 17,597     0.57 % 4,110,375 $ 29,729     0.97 %
Other liabilities 28,881 22,332

Stockholders equity

  702,646   694,309

Total liabilities and stockholders’ equity

$ 4,843,011 $ 4,827,016
Net interest income $ 120,622 $ 112,172
Net interest spread (3) 3.60 % 3.29 %
Net interest margin (4) 3.76 % 3.52 %
 
 
(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 nine months ended September 30, 2012 would have been 3.73% compared to a net interest spread of 3.46% for the nine months ended September 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
                       
                                     

 

September June March December September June

(dollars in thousands)

    2012     2012     2012     2011     2011     2011
 
Asset quality information and ratios:
Nonperforming assets:
Nonaccrual loans $ 36,571 40,821 42,852 47,855 54,640 59,727
Other real estate (ORE)   21,817       25,450       34,019       39,714       45,500       52,395  
Total nonperforming assets $ 58,388       66,271       76,871       87,569       100,140       112,122  

Past due loans over 90 days and still accruing interest

$ 162 - 821 858 1,911 481
Troubled debt restructurings (5) $ 24,090 26,626 22,832 23,416 18,187 12,990
 
Net loan charge-offs $ 1,935 2,399 3,630 6,335 5,732 8,605
Allowance for loan losses to nonperforming loans 188.9 % 170.5 % 166.6 % 154.6 % 137.0 % 128.9 %
As a percentage of total loans:
Past due accruing loans over 30 days 0.35 % 0.21 % 0.34 % 0.36 % 0.28 % 0.40 %
Potential problem loans (6) 3.13 % 3.49 % 3.78 % 4.12 % 4.09 % 4.62 %
Allowance for loan losses 1.96 % 2.02 % 2.14 % 2.25 % 2.31 % 2.40 %
Nonperforming assets to total loans and ORE 1.65 % 1.91 % 2.28 % 2.66 % 3.05 % 3.44 %
Nonperforming assets to total assets 1.20 % 1.34 % 1.60 % 1.80 % 2.06 % 2.32 %

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

0.31 % 0.36 % 0.45 % 0.94 % 1.00 % 1.14 %
Avg. commercial loan internal risk ratings (6) 4.6 4.6 4.7 4.6 4.7 4.8
 
Interest rates and yields:
Loans 4.62 % 4.65 % 4.74 % 4.74 % 4.78 % 4.87 %
Securities 3.19 % 3.27 % 3.31 % 3.26 % 3.54 % 3.67 %
Total earning assets 4.28 % 4.29 % 4.33 % 4.30 % 4.38 % 4.47 %
Total deposits, including non-interest bearing 0.43 % 0.47 % 0.63 % 0.62 % 0.77 % 0.90 %
Securities sold under agreements to repurchase 0.29 % 0.36 % 0.48 % 0.50 % 0.56 % 0.79 %
FHLB advances 1.15 % 1.07 % 1.03 % 1.07 % 1.89 % 2.42 %
Subordinated debt and other borrowings 2.84 % 2.91 % 3.00 % 2.80 % 2.68 % 2.73 %
Total deposits and interest-bearing liabilities 0.53 % 0.57 % 0.63 % 0.69 % 0.84 % 0.98 %
 
Pinnacle Financial Partners capital ratios (8):
Stockholders’ equity to total assets 13.8 % 13.4 % 15.0 % 14.6 % 14.9 % 14.5 %
Leverage 10.5 % 10.3 % 11.7 % 11.4 % 11.9 % 11.2 %
Tier one risk-based 12.1 % 12.0 % 14.0 % 13.8 % 14.4 % 13.9 %
Total risk-based 13.4 % 13.5 % 15.4 % 15.3 % 15.9 % 15.5 %
Tier one common equity to risk weighted assets 10.1 % 10.0 % 10.1 % 9.9 % 9.8 % 9.2 %
Tangible common equity to tangible assets 9.2 % 8.7 % 8.8 % 8.4 % 8.2 % 7.7 %
Pinnacle Bank ratios:
Classified Asset Ratio 33.4 % 37.8 % 39.3 % 44.4 % 46.8 % 52.9 %
Leverage 10.5 % 10.4 % 10.6 % 10.3 % 10.2 % 9.7 %
Tier one risk-based 12.0 % 12.0 % 12.6 % 12.5 % 12.3 % 12.0 %
Total risk-based 13.3 % 13.3 % 14.1 % 14.0 % 13.8 % 13.6 %
 
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
                       
                                     

 

September June March December September June

(dollars in thousands, except per share data)

    2012     2012     2012     2011     2011     2011
 
Per share data:
Earnings – basic $ 0.33 0.23 0.21 0.17 0.74 0.14
Earnings – diluted $ 0.33 0.23 0.21 0.17 0.72 0.14
Book value per common share at quarter end (9) $ 19.39 18.92 18.66 18.56 18.34 17.71
Tangible common equity per common share $ 12.19 11.79 11.50 11.33 11.08 10.38
 
Weighted avg. common shares – basic 33,939,248 33,885,779 33,811,871 33,485,253 33,372,980 33,454,229
Weighted avg. common shares – diluted 34,523,076 34,470,794 34,423,898 34,127,209 33,993,914 34,095,636
Common shares outstanding 34,691,659 34,675,913 34,616,013 34,354,960 34,306,927 34,136,163
 
Investor information:
Closing sales price $ 19.32 19.51 18.35 16.15 10.94 15.56
High closing sales price during quarter $ 20.38 19.51 18.44 16.65 16.21 16.82
Low closing sales price during quarter $ 18.88 16.64 15.25 10.28 10.52 14.15
 
Other information:
Gains on mortgage loans sold:
Mortgage loan sales:
Gross loans sold $ 130,277 105,486 119,426 134,842 104,663 69,123
Gross fees (10) $ 3,193 2,511 2,608 2,766 2,166 1,380

Gross fees as a percentage of mortgage loans originated

2.45 % 2.38 % 2.18 % 2.05 % 2.07 % 2.00 %
(Losses) gains on sales of investment securities, net of OTTI $ (50 ) 99 114 133 377 610
Brokerage account assets, at quarter-end (11) $ 1,244,100 1,191,259 1,176,180 1,061,249 987,908 1,101,000
Trust account assets, at quarter-end $ 761,641 803,904 789,614 632,608 607,668 663,304

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

$ 40,662 54,598 52,155 62,209 57,045 50,797
Core deposits (12) $ 3,576,425 3,523,542 3,405,915 3,441,547 3,388,692 3,437,595
Core deposits to total funding (12) 86.1 % 83.3 % 84.3 % 83.7 % 82.6 % 84.0 %
Risk-weighted assets $ 4,033,407 3,992,473 3,826,678 3,780,412 3,751,479 3,693,390
Total assets per full-time equivalent employee $ 6,715 6,724 6,442 6,511 6,580 6,538
Annualized revenues per full-time equivalent employee $ 281.6 273.9 266.8 263.2 262.5 261.3
Number of employees (full-time equivalent) 725.5 733.5 743.5 747.0 740.0 739.0
Associate retention rate (13) 93.4 % 94.0 % 93.7 % 92.0 % 92.6 % 89.6 %
 
Selected economic information (in thousands) (14):
Nashville MSA nonfarm employment - August 2012 757.6 764.7 747.8 757.3 735.5 738.3
Knoxville MSA nonfarm employment - August 2012 337.3 338.9 330.9 331.7 327.7 325.1
Nashville MSA unemployment - August 2012 7.1 % 6.8 % 7.2 % 7.2 % 8.5 % 8.9 %
Knoxville MSA unemployment - August 2012 6.8 % 6.4 % 6.7 % 6.6 % 7.9 % 8.3 %
Nashville residential median home price $ 177.1 175.5 168.5 168.5 171.6 167.1
Nashville inventory of residential homes for sale (16) 11.0 11.8 11.8 10.6 13.4 14.0
 
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
                       
September June March December September June
(dollars in thousands , except per share data)     2012     2012     2012     2011     2011     2011
 
Tangible assets:
Total assets $ 4,871,386 $ 4,931,878 $ 4,789,583 $ 4,863,951 $ 4,868,905 $ 4,831,333
Less: Goodwill (244,045 ) (244,065 ) (244,072 ) (244,076 ) (244,082 ) (244,083 )
Core deposit and other intangible assets   (5,787 )       (6,470 )       (7,156 )       (7,842 )       (8,558 )       (9,273 )
Net tangible assets $ 4,621,554       $ 4,681,343       $ 4,538,355       $ 4,612,033       $ 4,616,265       $ 4,577,976  
 
Tangible equity:

Total stockholders’ equity

$ 672,824 $ 659,287 $ 718,665 $ 710,145 $ 724,374 $ 699,228
Less: Goodwill (244,045 ) (244,065 ) (244,072 ) (244,076 ) (244,082 ) (244,083 )
Core deposit and other intangible assets   (5,787 )       (6,470 )       (7,156 )       (7,842 )       (8,558 )       (9,273 )
Net tangible equity 422,992 408,752 467,437 458,226 471,734 445,872
Less: Preferred stock   -         -         (69,355 )       (69,097 )       (91,772 )       (91,422 )
Net tangible common equity $ 422,992       $ 408,752       $ 398,082       $ 389,130       $ 379,962       $ 354,449  
 
Ratio of tangible common equity to tangible assets   9.15 %       8.73 %       8.77 %       8.44 %       8.23 %       7.74 %
 
 
For the three months ended
September June March December September June
2012     2012     2012     2011     2011     2011
 
Net interest income $ 40,932 $ 40,185 $ 39,504 $ 39,293 $ 38,356 $ 37,795
 
Noninterest income 10,430 9,910 9,949 9,727 10,080 9,809
Less: Net (losses) gains on sale of investment securities   (50 )       99         114         133         377         610  
Noninterest income excluding the impact of other net (losses) gains on sale of investment securities $ 10,480       $ 9,811       $ 9,835       $ 9,594       $ 9,703       $ 9,199  
 
Noninterest expense 33,578 33,915 35,820 34,374 35,676 34,357
Other real estate owned expense   2,399         3,104         4,676         4,193         5,079         3,826  
Noninterest expense excluding the impact of other real estate owned expense $ 31,179       $ 30,811       $ 31,144       $ 30,181       $ 30,597       $ 30,532  
 
Adjusted pre-tax pre-provision income (15) $ 20,233       $ 19,185       $ 18,195       $ 18,706       $ 17,462       $ 16,463  
 
 
Efficiency Ratio (4) 65.4 % 67.7 % 72.4 % 70.1 % 73.7 % 72.2 %
 

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

60.7 % 61.5 % 63.0 % 61.6 % 63.2 % 64.1 %
 
 
Noninterest expense $ 33,578 $ 33,915 $ 35,820 $ 34,374 $ 35,676 $ 34,357
Other real estate owned expense   2,399         3,104         4,676         4,193         5,079         3,826  
Noninterest expense excluding the impact of other real estate owned expense $ 31,179       $ 30,811       $ 31,144       $ 30,181       $ 30,597       $ 30,532  
 
Total average assets   4,860,394         4,847,583         4,820,951         4,852,311         4,786,485         4,826,731  
 
Noninterest expense (excluding ORE) to avg. assets (1) 2.55 % 2.56 % 2.60 % 2.50 % 2.57 % 2.54 %
 
 

For the threemonths endedSeptember 30, 2011

For the nine months ended September 30,

                        2012     2011
 
Net income available to common stockholders $ 24,537 $ 26,340 $ 31,392
Reversal of valuation allowance based on net deferred tax assets (22,480 ) - (22,480 )
Actual 2011 current tax expense 5,211 - 5,211
Accelerated accretion on preferred stock discount   -   $ 1,664         -  
$ 7,268   $ 28,004       $ 14,123  
 
Diluted net income per common share available to common stockholders, as adjusted $ 0.21   $ 0.81       $ 0.41  
 
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 defined as follows:

Equity to total assets – End of period total stockholders’ equity as a percentage of end of period assets.

Tangible common equity to total assets – End of period total stockholders’ equity less end of period goodwill, core deposit and other intangibles 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.

Classified asset – Classified assets as a percentage of Tier 1 Capital less allowance for loan losses.

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.

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.

13.

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.

14.

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.

15.

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.

16.

Represents homes currently listed with MLS in the Nashville MSA.





4 of 5

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!
DOW 17,719.00 +33.27 0.19%
S&P 500 2,052.75 +4.03 0.20%
NASDAQ 4,701.8670 +26.1550 0.56%

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