Pinnacle Financial Grows Quarterly Net Income Per Fully Diluted Share 143 Percent Over Fourth Quarter Of 2010

Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) today reported that its net income per fully diluted common share available to common stockholders was $0.17 for the quarter ended Dec. 31, 2011, compared to net income per fully diluted common share available to common stockholders of $0.07 for the quarter ended Dec. 31, 2010, an increase of 143 percent. The Company’s results for the fourth quarter of 2011 include $718,000 in additional accretion charges as a result of the Company’s redemption of 25 percent of its TARP preferred shares on Dec. 28, 2011.

Net income per fully diluted common share available to common stockholders was $1.09 for the year ended Dec. 31, 2011, compared to a net loss per fully diluted common share available to common stockholders of $0.93 for the year ended Dec. 31, 2010. Fully diluted net income per share available to common stockholders for the year ended Dec. 31, 2011, was $0.64 excluding $0.45 per share related to the third quarter 2011 reversal of the valuation allowance for net deferred tax assets.

“This past year was a pivotal one for our firm as we significantly reduced the level of problem loans and expanded our core earnings,” said M. Terry Turner, Pinnacle’s president and chief executive officer. “As we went through the year, we made dramatic improvements in asset quality, significantly altered our funding mix to lower costs and produced meaningful growth in commercial and industrial loans as well as demand deposits. This growth reflects our continuing opportunity to capitalize on client dissatisfaction with the larger national and regional banks in our markets. We also redeemed 25 percent of our TARP preferred shares with no dilution to our common stockholders. We expect continuing improvement in core earnings and asset quality in 2012.”

Building the Core Earnings Capacity of the Firm
  • Loans at Dec. 31, 2011, were $3.29 billion, an increase of $50.2 million from $3.24 billion at Sept. 30, 2011, or an annualized growth rate of 6.2 percent. Commercial and industrial loans combined with owner-occupied commercial real estate loans were $1.73 billion at Dec. 31, 2011, an increase of $77.0 million from $1.65 billion at Sept. 30, 2011, an annualized growth rate of 18.7 percent and the sixth consecutive quarter of net growth.
  • Average balances of noninterest bearing deposit accounts were $705.6 million in the fourth quarter of 2011, the seventh consecutive quarterly increase. Average balances increased 5.0 percent over third quarter 2011 and 22.5 percent over the same quarter last year.
  • Revenue for the quarter ended Dec. 31, 2011, amounted to $49.02 million, compared to $44.72 million for the same quarter of last year, an increase of 9.6 percent.
  • Net interest margin increased to 3.65 percent for the quarter ended Dec. 31, 2011, from 3.29 percent for the quarter ended Dec. 31, 2010.
  • Less than five years after expanding to the Knoxville market, Pinnacle’s Knoxville footprint reached $551.1 million in loans at the end of the fourth quarter 2011.

“Our adjusted pre-tax, pre-provision net income was $18.7 million in the fourth quarter of 2011, up from $16.1 million in the fourth quarter of 2010,” Turner said. “During 2011, we successfully created more focus on growth with our sales associates. Our relationship managers continue to pursue established businesses in our markets as evidenced by significant growth in C&I loans during the last half of 2011. Additionally, during 2011 we recruited several experienced commercial lenders that should further bolster our ability to grow organically and move market share during 2012, a longstanding core strategy of our firm.”

Aggressively Dealing with Credit Issues

  • Nonperforming assets declined by $12.6 million, a linked-quarter reduction of 12.6 percent and the sixth consecutive quarterly reduction. Pinnacle resolved $32.3 million in nonperforming assets during the fourth quarter of 2011, compared to resolutions of $29.5 million during the third quarter of 2011.
    • Nonperforming loans declined by $6.8 million during the fourth quarter of 2011, a linked-quarter reduction of 12.4 percent and the seventh consecutive quarterly reduction. Nonperforming loans are down 40.8 percent from a year ago.
    • Other real estate also declined by $5.8 million during the fourth quarter of 2011, inclusive of $7.4 million in property foreclosures during the fourth quarter of 2011.
  • Potential problem loans, which are classified loans that continue to accrue interest, also decreased from $228.3 million at Dec. 31, 2010, to $130.4 million at Dec. 31, 2011, a decrease of 42.9 percent. Potential problem loans are down by 59.0 percent from their peak in June 2010.
  • Construction and land development loans were $274.2 million at Dec. 31, 2011, down 1.6 percent from $278.7 million at Sept. 30, 2011, and 17.2 percent from $331.3 million at Dec. 31, 2010. Residential land development loans declined from $111.6 million at Dec. 31, 2010, to $71.2 million at Dec. 31, 2011. Residential land development loans decreased 7.7 percent during the fourth quarter of 2011 from $77.1 million at Sept. 30, 2011.

“Our special assets group has been an important factor in our performance in 2011,” Turner said. “These professionals have worked tirelessly over the last year to minimize our problem loans and credit losses. As a result of their efforts, dispositions of nonperforming loans and other real estate during 2011 amounted to approximately $133.6 million. As we move into 2012, we anticipate dispositions will decrease as we continue to see improvement in our credit quality and the absolute size of our troubled asset portfolio declines.”

OTHER FOURTH QUARTER 2011 HIGHLIGHTS:

  • Core Deposits
    • Core deposits increased by $52.9 million during the fourth quarter of 2011. Core deposits consist of all deposits other than time based deposits issued in denominations of $250,000 or greater.
    • Over the last year, the firm has successfully repositioned its deposit base so that average balances for noninterest-bearing demand, interest checking and money market accounts for the fourth quarter of 2011 increased to $2.88 billion from $2.64 billion for the fourth quarter of 2010, or 9.0 percent, while average balances for higher-cost time deposits decreased from $1.17 billion to $759 million, or 35.1 percent, during the same time period.
  • Operating results
    • Net income available to common stockholders for the fourth quarter of 2011 was $5.68 million, compared to the prior year s fourth quarter net income available to common stockholders of $2.25 million. Third quarter 2011 net income available to common stockholders totaled $24.54 million, which included a $16.97 million income tax benefit that was composed primarily of the reversal of the valuation allowance of net deferred tax assets of approximately $22.48 million, reduced by estimated 2011 income tax expense.
    • Noninterest income for the quarter ended Dec. 31, 2011, was $9.7 million, compared to $10.1 million for the third quarter of 2011 and $8.7 million for the same quarter last year. Excluding the impact of net securities gains and losses, noninterest income was up 10.7 percent over the same quarter last year.
      • Wealth management revenues, which include investment services, trust services and insurance, were $3.09 million during the fourth quarter of 2011, an increase of 16.0 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 $1.46 million during the fourth quarter of 2011, compared to $1.30 million during the third quarter of 2011 due primarily to a significant increase in mortgage loan refinance activity.
    • Pre-tax pre-provision income for the quarter ended Dec. 31, 2011, was $14.6 million, compared to $8.3 million for the fourth quarter of 2010, an increase of 77.1 percent.
    • Income tax expense was $1.4 million for the fourth quarter of 2011, compared to no expense in the fourth quarter of 2010, resulting in an effective tax rate for the fourth quarter of 2011 of 15.7 percent. During the third quarter of 2011, the Company recorded a $22.48 million reversal of a deferred tax valuation allowance but pursuant to generally accepted accounting principles had reduced the reversal recognized in the third quarter of 2011 by estimated tax expense for the fourth quarter of 2011. The Company’s effective tax rate during fourth quarter of 2011 was more than the Company had estimated primarily due to increased operating results versus its forecast. The Company anticipates an effective tax rate range of 31.0 percent to 34.0 percent during 2012.

“In addition to our fourth quarter 2011 net interest margin increasing to 3.65 percent, our net interest income increased by 9.0 percent over last year’s fourth quarter,” said Harold R. Carpenter, Pinnacle’s chief financial officer. “We continue to reduce our cost of funds and believe that we will experience increased margins and net interest income over the next few quarters. Although we anticipate expansion in our top line revenues in 2012, it will be a challenging year. Loan pricing will remain competitive, and the economic factors affecting the broader markets will likely result in reduced yields for our investment portfolio as prepayments continue to escalate. We will likely reduce the balance of our investment portfolio in 2012, thus providing additional cash flows to support quality lending opportunities that appear to be emerging in our two primary banking markets.”
  • Capital
    • At Dec. 31, 2011, Pinnacle’s ratio of tangible common stockholders’ equity to tangible assets was 8.4 percent, compared to 7.1 percent at Dec. 31, 2010, and 8.2 percent at Sept. 30, 2011. At Dec. 31, 2011, Pinnacle’s total risk-based capital ratio was 15.3 percent, compared to 15.4 percent at Dec. 31, 2010, and 15.9 percent at Sept. 30, 2011.

“We are pleased that we were able to redeem 25 percent of our outstanding TARP preferred shares with existing cash balances just before the end of 2011,” Turner said. “Our strategy for redemption has been consistent for quite some time, and we intend to maintain a productive dialogue with our primary regulators to formulate a workable plan aimed at complete redemption over the next year or so with minimal dilution to our shareholders.”

The Company also reported that during the fourth quarter of 2011, it had been informed that the OCC had lifted Pinnacle National Bank’s individual minimum capital requirement to maintain at least an 8 percent Tier 1 leverage ratio and 12 percent total risk-based capital ratio. Regardless of that fact, Turner noted that the Company intended to maintain at least an 8 percent Tier 1 leverage ratio and at least a 12 percent total risk-based capital ratio at the bank for the foreseeable future.

  • Credit quality
    • The allowance for loan losses represented 2.25 percent of total loans at Dec. 31, 2011, compared to 2.31 percent at Sept. 30, 2011, and 2.57 percent at Dec. 31, 2010.
      • Net charge-offs were $6.34 million for the quarter ended Dec. 31, 2011, compared to $7.15 million for the quarter ended Dec. 31, 2010, and $5.73 million for the third quarter of 2011.
      • Provision for loan losses expense increased from $5.17 million for the fourth quarter of 2010 to $5.44 million for the fourth quarter of 2011. Impacting fourth quarter provision expense was net loan growth of $50 million during 2011, compared to a net reduction in loans of $39 million during the same quarter in 2010. For the 12 months ended Dec. 31, 2011, provision expense was $21.8 million compared to $53.7 million last year.
    • Nonperforming assets were 2.66 percent of total loans plus other real estate at Dec. 31, 2011, compared to 3.05 percent at Sept. 30, 2011, and 4.29 percent at Dec. 31, 2010. The ratio of the allowance for loan losses to nonperforming loans increased to 154.6 percent at Dec. 31, 2011, from 137.0 percent at Sept. 30, 2011, and 102.1 percent at Dec. 31, 2010.
    • Past due loans over 30 days, excluding nonperforming loans, were 0.36 percent of total loans at Dec. 31, 2011, compared to 0.28 percent at Sept. 30, 2011, and 0.30 percent at Dec. 31, 2010.

"We are obviously pleased with the improvement in credit metrics in 2011, and we believe that we will experience continued improvement in our asset quality in 2012," Carpenter said. "At this time, we are becoming increasingly optimistic that our 2012 net charge-offs and other real estate expense 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 Dec. 31, 2011:

         
(in thousands)

Balances

Sept. 30, 2011

Payments, Sales and Reductions
Foreclosures Inflows Balances

Dec. 31, 2011
Troubled debt restructurings:
Residential construction and development $ - $ - $ - $ - $ -
Commercial construction and development - - - - -
Other   18,187     (3,150 )     -       8,379     23,416
Totals   18,187     (3,150 )     -       8,379     23,416
Nonperforming loans:
Residential construction and development 9,651 (3,140 ) (1,046 ) 2,655 8,120
Commercial construction and development 13,890 (3,291 ) (4,293 ) 686 6,991
Other   31,099     (12,607 )     (2,093 )     16,345     32,744
Totals   54,640     (19,038 )     (7,432 )     19,685     47,855
Other real estate:
Residential construction and development 13,601 (738 ) 1,046 - 13,909
Commercial construction and development 24,943 (9,139 ) 4,293 - 20,097
Other   6,956     (3,341 )     2,093       -     5,708
Totals   45,500     (13,218 )     7,432       -     39,714

Total nonperforming assets and troubled debt restructurings
$ 118,327   $ (35,406 )   $ -     $ 28,064   $ 110,985
  • Noninterest expense
    • Noninterest expense for the quarter ended Dec. 31, 2011, was $34.37 million, compared to $36.45 million in the fourth quarter of 2010, and $35.68 million in the third quarter of 2011.
    • Included in noninterest expense for the fourth quarter of 2011 was $4.19 million in other real estate expenses, compared to $7.87 million in the fourth quarter of 2010, and $5.08 million in the third quarter of 2011.

Carpenter said that compensation costs in 2011 increased by approximately $9.8 million over 2010 and that the increase was primarily attributable to the payment of annual incentive awards to participants in the firm’s incentive plans. Carpenter stated that in 2010 no cash incentives were paid and thus, excluding annual cash incentives, compensation costs in 2011 would have approximated the amount in 2010. Incentive payouts for all associates other than the executive officers during 2011 are based on achievement of predetermined targets for soundness and operating results. Executive officers are not eligible for any cash incentives as long as the Company is a TARP participant.

Included in the other real estate expense for the quarter was $2.3 million of additional write downs of existing OREO balances based on updated appraisals. The firm also recorded $480,000 in losses related to the disposition of $13.2 million of other real estate properties. Excluding the impact of ORE expenses in each quarterly period, the fourth quarter of 2011 noninterest expense was approximately $30.18 million, compared to $30.60 million in the third quarter of 2011 and $28.58 million in the fourth quarter of 2010. Excluding the impact of other real estate expenses, the firm currently anticipates that first quarter 2012 noninterest expense will increase modestly over fourth quarter noninterest expenses.

WEBCAST AND CONFERENCE CALL INFORMATION

Pinnacle will host a webcast and conference call at 8:30 a.m. (CT) on Jan. 18, 2012, to discuss fourth quarter 2011 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 $4.86 billion in assets at Dec. 31, 2011. At Dec. 31, 2011, Pinnacle is the second-largest bank holding company headquartered in Tennessee, with 29 offices in eight Middle Tennessee counties and three offices in Knoxville. The firm was also added to Standard & Poor’s SmallCap 600 index in 2009.

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; (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 February 23, 2011 and most recent quarterly reports on Form 10-Q filed with the Securities and Exchange commission on May 5, 2011, July 29, 2011 and October 31, 2011. 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        
 
    December 31, 2011   December 31, 2010

ASSETS
Cash and noninterest-bearing due from banks $ 63,015,997 $ 40,154,247
Interest-bearing due from banks 108,422,470 140,647,481
Federal funds sold and other 724,573 7,284,685
Short-term discount notes   -       499,768  
Cash and cash equivalents 172,163,040 188,586,181
 
Securities available-for-sale, at fair value 894,962,246 1,014,316,831

Securities held-to-maturity (fair value of $2,369,118 and $4,411,856 at December 31, 2011 and 2010, respectively)
2,329,917 4,320,486
Mortgage loans held-for-sale 35,363,038 16,206,034
 
Loans 3,291,350,857 3,212,440,190
Less allowance for loan losses   (73,974,675 )     (82,575,235 )
Loans, net 3,217,376,182 3,129,864,955
 
Premises and equipment, net 77,127,361 82,374,228
Other investments 44,653,840 42,282,255
Accrued interest receivable 15,243,366 16,364,573
Goodwill 244,076,492 244,090,311
Core deposit and other intangible assets 7,842,267 10,705,105
Other real estate owned 39,714,415 59,608,224
Other assets   113,098,540       100,284,697  
Total assets $ 4,863,950,704     $ 4,909,003,880  
 

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing $ 717,378,933 $ 586,516,637
Interest-bearing 637,203,420 573,670,188
Savings and money market accounts 1,585,260,139 1,596,306,386
Time   714,496,974       1,076,564,179  
Total deposits 3,654,339,466 3,833,057,390
Securities sold under agreements to repurchase 131,591,412 146,294,379
Federal Home Loan Bank advances 226,068,796 121,393,026
Subordinated debt 97,476,000 97,476,000
Accrued interest payable 2,233,330 5,197,925
Other liabilities   42,097,132       28,127,875  
Total liabilities 4,153,806,136 4,231,546,595
 
Stockholders’ equity:

Preferred stock, no par value; 10,000,000 shares authorized; 71,250 and 95,000 shares issued and outstanding at December 31, 2011 and 2010, respectively
69,096,828 90,788,682

Common stock, par value $1.00; 90,000,000 shares authorized; 34,354,960 issued and outstanding and 33,870,380 issued and outstanding at December 31, 2011 and 2010, respectively
34,354,960 33,870,380
Common stock warrants 3,348,402 3,348,402
Additional paid-in capital 536,227,537 530,829,019
Retained earnings 49,783,584 12,996,202
Accumulated other comprehensive income, net of taxes   17,333,257       5,624,600  
Stockholders’ equity   710,144,568       677,457,285  
Total liabilities and stockholders’ equity $ 4,863,950,704     $ 4,909,003,880  
 
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 Twelve Months Ended
December 31, December 31,
    2011   2010   2011   2010
Interest income:
Loans, including fees $ 38,917,962 $ 40,397,612 $ 154,748,491 $ 162,901,763
Securities
Taxable 5,179,009 6,156,080 23,971,787 30,306,189
Tax-exempt 1,800,793 1,937,747 7,394,134 7,916,596
Federal funds sold and other   548,047     587,882       2,232,423       2,223,816  
Total interest income   46,445,811     49,079,321       188,346,835       203,348,364  
 
Interest expense:
Deposits 5,718,988 11,161,716 30,588,033 49,856,815
Securities sold under agreements to repurchase 178,958 397,890 1,110,078 1,749,905
Federal Home Loan Bank advances and other borrowings   1,255,194     1,463,466       5,184,313       7,368,258  
Total interest expense   7,153,140     13,023,072       36,882,424       58,974,978  
Net interest income 39,292,671 36,056,249 151,464,411 144,373,386
Provision for loan losses   5,438,846     5,171,527       21,797,613       53,695,454  
Net interest income after provision for loan losses 33,853,825 30,884,722 129,666,798 90,677,932
 
Noninterest income:
Service charges on deposit accounts 2,290,699 2,352,955 9,244,165 9,591,543
Investment services 1,402,016 1,264,038 6,246,414 5,050,105
Insurance sales commissions 943,959 906,947 3,999,153 3,864,340
Gain on mortgage loans sold, net 1,461,224 1,351,680 4,155,137 4,085,657
Net gain on sale of investment securities 133,055 - 960,763 2,623,674
Trust fees 746,257 495,308 2,999,731 2,872,490
Other noninterest income   2,749,616     2,295,083       10,334,847       8,227,237  
Total noninterest income   9,726,826     8,666,011       37,940,210       36,315,046  
 
Noninterest expense:
Salaries and employee benefits 18,962,481 15,707,984 74,424,851 64,628,991
Equipment and occupancy 4,977,335 4,987,900 19,986,976 21,077,223
Other real estate owned 4,193,073 7,874,492 17,431,926 29,210,197
Marketing and other business development 1,031,884 937,404 3,303,151 3,233,224
Postage and supplies 576,469 467,485 2,120,722 2,538,021
Amortization of intangibles 715,514 744,492 2,862,837 2,980,986
Other noninterest expense   3,917,180     5,731,763       18,976,865       23,214,670  
Total noninterest expense   34,373,936     36,451,520       139,107,328       146,883,312  
Income (loss) before income taxes 9,206,715 3,099,213 28,499,680 (19,890,334 )
Income tax expense (benefit)   1,446,918     (696,576 )     (15,237,687 )     4,410,158  
Net Income (loss) 7,759,797 3,795,789 43,737,367 (24,300,492 )
Preferred dividends 1,004,410 1,213,889 4,606,493 4,815,972
Accretion on preferred stock discount   1,074,698     333,554       2,058,146       1,326,050  
Net income (loss) available to common stockholders $ 5,680,689   $ 2,248,346     $ 37,072,728     $ (30,442,514 )
 
Per share information:
Basic net income (loss) per common share available to common stockholders $ 0.17   $ 0.07     $ 1.11       ($0.93 )
Diluted net income (loss) per common share available to common stockholders $ 0.17   $ 0.07     $ 1.09       ($0.93 )
 
Weighted average shares outstanding:
Basic 33,485,253 33,062,533 33,420,015 32,789,871
Diluted 34,127,209 33,670,890 34,060,228 32,789,871
 
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
   

December 31, 2011
 

December 31, 2010
Average Balances   Interest   Rates/ Yields   Average Balances   Interest   Rates/ Yields
Interest-earning assets :
Loans (1) $ 3,261,972 $ 38,918 4.74 % $ 3,217,738 $ 40,398 4.99 %
Securities
Taxable 733,871 5,179 2.80 % 788,138 6,156 3.10 %
Tax-exempt (2) 190,282 1,801 5.01 % 205,098 1,938 4.94 %
Federal funds sold and other   161,227     548   1.45 %     230,698     588   1.08 %
Total interest-earning assets 4,347,352 $ 46,446   4.30 % 4,441,672 $ 49,079   4.45 %
Nonearning assets
Intangible assets 252,368 255,268
Other nonearning assets   252,591   240,241
Total assets $ 4,852,311 $ 4,937,181
 
Interest-bearing liabilities:
Interest-bearing deposits:
Interest checking $ 584,342 $ 757 0.51 % $ 533,191 $ 898 0.67 %
Savings and money market 1,592,704 2,624 0.65 % 1,536,169 4,687 1.21 %
Time   759,219     2,338   1.22 %     1,169,606     5,577   1.89 %
Total interest-bearing deposits 2,936,265 5,719 0.77 % 3,238,966 11,162 1.37 %
Securities sold under agreements to repurchase 141,818 179 0.50 % 194,283 398 0.81 %

Federal Home Loan Bank advances and other borrowings
209,619 566 1.07 % 121,414 796 2.60 %
Subordinated debt   97,476     689   2.80 %     97,476     667   2.72 %
Total interest-bearing liabilities 3,385,178 7,153 0.84 % 3,652,139 13,023 1.41 %
Noninterest-bearing deposits   705,580     -   -       575,606     -   -  
Total deposits and interest-bearing liabilities 4,090,758 $ 7,153   0.69 % 4,227,745 $ 13,023   1.22 %
Other liabilities 31,931 19,460
Stockholders' equity   729,622   689,976
Total liabilities and stockholders' equity $ 4,852,311 $ 4,937,181
Net interest income $ 39,293 $ 36,056
Net interest spread (3) 3.46 % 3.04 %
Net interest margin (4) 3.65 % 3.29 %
 
 
 
(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 December 31, 2011 would have been 3.61% compared to a net interest spread of 3.23% for the quarter ended December 31, 2010.
(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) Twelve months ended Twelve months ended
   

December 31, 2011
 

December 31, 2010
Average Balances   Interest   Rates/ Yields   Average Balances   Interest   Rates/ Yields
Interest-earning assets:
Loans (1) $ 3,218,123 $ 154,749 4.82 % $ 3,362,024 $ 162,902 4.85 %
Securities
Taxable 768,063 23,972 3.12 % 780,643 30,306 3.88 %
Tax-exempt (2) 193,397 7,394 5.10 % 205,029 7,917 5.09 %
Federal funds sold and other   167,932     2,232   1.43 %     188,091     2,224   1.27 %
Total interest-earning assets 4,347,515 $ 188,348   4.40 % 4,535,787 $ 203,348   4.55 %
Nonearning assets
Intangible assets 253,443 256,379
Other nonearning assets   232,477   221,730
Total assets $ 4,833,435 $ 5,013,896
 
Interest-bearing liabilities:
Interest-bearing deposits:
Interest checking $ 583,212 $ 3,522 0.60 % $ 520,351 $ 3,491 0.67 %
Savings and money market 1,597,965 13,773 0.86 % 1,368,659 18,310 1.34 %
Time   876,864     13,293   1.52 %     1,419,358     28,056   1.98 %
Total interest-bearing deposits 3,058,041 30,588 1.00 % 3,308,368 49,857 1.51 %
Securities sold under agreements to repurchase 161,845 1,110 0.69 % 222,179 1,750 0.79 %

Federal Home Loan Bank advances and other borrowings
136,741 2,512 1.84 % 143,372 4,044 2.82 %
Subordinated debt   98,201     2,672   2.73 %     97,476     3,324   3.41 %
Total interest-bearing liabilities 3,454,828 36,882 1.07 % 3,771,395 58,975 1.56 %
Noninterest-bearing deposits   650,602     -   -       527,673     -   -  
Total deposits and interest-bearing liabilities 4,105,430 $ 36,882   0.90 % 4,299,068 $ 58,975   1.37 %
Other liabilities 24,752 17,842
Stockholders' equity   703,253   696,986
Total liabilities and stockholders' equity $ 4,833,435 $ 5,013,896
Net interest income $ 151,466 $ 144,373
Net interest spread (3) 3.33 % 2.99 %
Net interest margin (4) 3.55 % 3.25 %
 
 
 
 

(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 twelve months ended December 31, 2011 would have been 3.50% compared to a net interest spread of 3.18% for the twelve months ended December 31, 2010.

(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) December September June March December September
    2011   2011   2011   2011   2010   2010
 
Balance sheet data, at quarter end:
Commercial real estate - mortgage loans $ 1,110,962 1,087,333 1,091,283 1,102,533 1,094,615 1,103,261
Consumer real estate - mortgage loans 695,745 711,994 708,280 698,693 705,487 720,140
Construction and land development loans 274,248 278,660 282,064 300,697 331,261 359,729
Commercial and industrial loans 1,145,735 1,095,037 1,058,263 1,047,754 1,012,091 995,743
Consumer and other 64,661 68,125 67,214 67,753 68,986 73,052
Total loans 3,291,351 3,241,149 3,207,104 3,217,430 3,212,440 3,251,923
Allowance for loan losses (73,975 ) (74,871 ) (76,971 ) (78,988 ) (82,575 ) (84,550 )
Securities 897,292 942,752 925,508 984,200 1,018,637 968,532
Total assets 4,863,951 4,868,905 4,831,333 4,820,991 4,909,004 4,961,603
Noninterest-bearing deposits 717,379 722,694 662,018 608,428 586,517 581,181
Total deposits 3,654,339 3,712,650 3,761,520 3,731,883 3,833,057 3,825,634
Securities sold under agreements to repurchase 131,591 128,954 124,514 165,132 146,294 191,392
FHLB advances and other borrowings 226,069 161,106 111,191 111,351 121,393 121,435
Subordinated debt 97,476 97,476 97,476 97,476 97,476 97,476
Total stockholders’ equity 710,145 724,374 699,228 681,226 677,457 686,529
 
Balance sheet data, quarterly averages:
Total loans $ 3,261,972 3,207,213 3,211,591 3,191,076 3,217,738 3,295,531
Securities 924,153 939,778 972,750 1,010,344 993,236 954,869
Total earning assets 4,347,352 4,308,710 4,347,552 4,387,331 4,441,672 4,519,956
Total assets 4,852,311 4,786,485 4,826,731 4,868,745 4,937,181 5,001,373
Noninterest-bearing deposits 705,580 671,796 628,929 594,651 575,606 534,171
Total deposits 3,641,845 3,699,553 3,722,613 3,772,092 3,814,572 3,859,124
Securities sold under agreements to repurchase 141,818 145,050 175,705 185,471 194,283 210,037
FHLB advances and other borrowings 209,619 111,699 114,072 113,705 121,414 126,130
Subordinated debt 97,476 97,476 97,476 97,476 97,476 97,476
Total stockholders’ equity 729,622 708,973 691,020 682,638 689,976 686,898
 
Statement of operations data, for the three months ended:
Interest income $ 46,446 46,888 47,789 47,224 49,079 50,650
Interest expense   7,153     8,532     9,994     11,204     13,023     14,590  
Net interest income 39,293 38,356 37,795 36,020 36,056 36,060
Provision for loan losses   5,439     3,632     6,587     6,139     5,172     4,789  
Net interest income after provision for loan losses 33,854 34,724 31,208 29,881 30,884 31,271
Noninterest income 9,727 10,080 9,809 8,324 8,666 8,594
Noninterest expense   34,374     35,676     34,357     34,701     36,452     37,774  
Income before taxes 9,207 9,128 6,660 3,504 3,098 2,091
Income tax expense (benefit) 1,447 (16,973 ) 288 - (697 ) -
Preferred dividends and accretion   2,079     1,564     1,529     1,492     1,547     1,542  
Net income available to common stockholders $ 5,681     24,537     4,843     2,011     2,248     549  
 
Profitability and other ratios:
Return on avg. assets (1) 0.46 % 2.06 % 0.40 % 0.17 % 0.18 % 0.04 %
Return on avg. equity (1) 3.09 % 13.88 % 2.81 % 1.19 % 1.29 % 0.32 %
Net interest margin (1) (2) 3.65 % 3.60 % 3.55 % 3.40 % 3.29 % 3.23 %
Noninterest income to total revenue (3) 19.84 % 20.81 % 20.61 % 18.77 % 19.38 % 19.25 %
Noninterest income to avg. assets (1) 0.80 % 0.84 % 0.82 % 0.69 % 0.70 % 0.68 %
Noninterest exp. to avg. assets (1) 2.81 % 2.99 % 2.86 % 2.89 % 2.93 % 3.00 %
Efficiency ratio (4) 70.12 % 73.66 % 72.17 % 78.25 % 81.51 % 84.59 %
Avg. loans to average deposits 89.57 % 86.69 % 86.27 % 84.60 % 84.35 % 85.40 %
Securities to total assets 18.45 % 19.36 % 19.16 % 20.41 % 20.75 % 19.52 %

Average interest-earning assets to average interest-bearing liabilities
128.42 % 127.40 % 124.90 % 122.75 % 121.62 % 120.26 %
Brokered time deposits to total deposits (16) 0.00 % 0.00 % 0.00 % 0.00 % 0.03 % 1.80 %
 
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                
   
                         

 
December September June March December September

(dollars in thousands)
  2011   2011   2011   2011   2010   2010
 
Asset quality information and ratios:
Nonperforming assets:
Nonaccrual loans $ 47,855 54,640 59,727 76,368 80,863 103,127
Other real estate (ORE)   39,714     45,500     52,395     56,000     59,608     48,710  
Total nonperforming assets $ 87,569     100,140     112,122     132,368     140,471     151,837  

Past due loans over 90 days and still accruing interest
$ 858 1,911 481 1,151 138 3,639
Troubled debt restructurings (5) 23,416 18,187 12,990 15,285 20,468 13,468
 
Net loan charge-offs $ 6,335 5,732 8,605 9,726 7,146 7,346
Allowance for loan losses to nonaccrual loans 154.6 % 137.0 % 128.9 % 103.4 % 102.1 % 82.0 %
As a percentage of total loans:
Past due accruing loans over 30 days 0.36 % 0.28 % 0.40 % 0.36 % 0.30 % 0.67 %
Potential problem loans (6) 3.96 % 4.04 % 4.62 % 5.31 % 6.95 % 8.23 %
Allowance for loan losses 2.25 % 2.31 % 2.40 % 2.46 % 2.57 % 2.60 %
Nonperforming assets to total loans and ORE 2.66 % 3.05 % 3.44 % 4.04 % 4.29 % 4.60 %
Nonperforming assets to total assets 1.80 % 2.06 % 2.32 % 2.75 % 2.86 % 3.06 %

Annualized net loan charge-offs year-to-date to avg. loans (7)
0.94 % 1.00 % 1.14 % 1.22 % 1.96 % 2.26 %
Avg. commercial loan internal risk ratings (6) 4.6 4.7 4.8 4.8 4.8 4.9
 
Interest rates and yields:
Loans 4.74 % 4.78 % 4.87 % 4.88 % 4.99 % 4.96 %
Securities 3.26 % 3.54 % 3.67 % 3.58 % 3.48 % 3.97 %
Total earning assets 4.30 % 4.38 % 4.47 % 4.43 % 4.45 % 4.51 %
Total deposits, including non-interest bearing 0.62 % 0.77 % 0.90 % 1.01 % 1.16 % 1.27 %
Securities sold under agreements to repurchase 0.50 % 0.56 % 0.79 % 0.83 % 0.81 % 0.82 %
FHLB advances and other borrowings 1.07 % 1.89 % 2.42 % 2.65 % 2.60 % 2.90 %
Subordinated debt 2.80 % 2.68 % 2.73 % 2.73 % 2.72 % 3.78 %
Total deposits and interest-bearing liabilities 0.69 % 0.84 % 0.98 % 1.09 % 1.22 % 1.35 %
 
Capital ratios (8):
Stockholders’ equity to total assets 14.6 % 14.9 % 14.5 % 14.1 % 13.8 % 13.8 %
Leverage 11.4 % 11.9 % 11.2 % 11.0 % 10.7 % 10.5 %
Tier one risk-based 13.8 % 14.4 % 13.9 % 13.6 % 13.8 % 13.5 %
Total risk-based 15.3 % 15.9 % 15.5 % 15.2 % 15.4 % 15.1 %
Tangible common equity to tangible assets 8.4 % 8.2 % 7.7 % 7.4 % 7.1 % 7.2 %
Tangible common equity to risk weighted assets 10.3 % 10.3 % 9.6 % 9.1 % 9.1 % 9.3 %
 
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                
 
                         

 
December September June March December September

(dollars in thousands, except per share data)
  2011   2011   2011   2011   2010   2010
 
Per share data:
Earnings – basic $ 0.17 0.74 0.14 0.06 0.07 0.02
Earnings – diluted $ 0.17 0.72 0.14 0.06 0.07 0.02
Book value per common share at quarter end (9) $ 18.56 18.34 17.71 17.19 17.22 17.61
Tangible common equity per common share $ 11.33 11.08 10.38 9.85 9.80 10.12
 
Weighted avg. common shares – basic 33,485,253 33,372,980 33,454,229 33,366,053 33,062,533 32,857,428
Weighted avg. common shares – diluted 34,127,209 33,993,914 34,095,636 34,013,810 33,670,890 33,576,963
Common shares outstanding 34,354,960 34,306,927 34,136,163 34,132,256 33,870,380 33,660,462
 
Investor information:
Closing sales price $ 16.15 10.94 15.56 16.54 13.58 9.19
High closing sales price during quarter $ 16.65 16.21 16.82 16.60 13.74 14.33
Low closing sales price during quarter $ 10.28 10.52 14.15 13.55 9.27 8.51
 
Other information:
Gains on sale of loans and loan participations sold:
Mortgage loan sales:
Gross loans sold $ 134,794 104,716 68,506 70,981 143,793 137,094
Gross fees (10) $ 2,610 2,166 1,380 1,129 2,610 2,503

Gross fees as a percentage of mortgage loans originated
1.94 % 2.07 % 2.01 % 1.59 % 1.81 % 1.83 %
Gains (losses) on sales of investment securities, net $ 133 377 610 (159 ) - -
Brokerage account assets, at quarter-end (11) $ 1,061,249 987,908 1,101,000 1,110,000 1,038,000 966,000
Trust account assets, at quarter-end $ 632,608 607,668 663,304 730,000 693,000 647,000
Floating rate loans as a percentage of total loans (12) 32.9 % 33.3 % 34.7 % 35.4 % 36.9 % 37.9 %

Balance of commercial loan participations sold to other banks and serviced by Pinnacle, at quarter end
$ 62,209 57,045 50,797 60,784 55,632 57,964
Core deposits (13) $ 3,441,547 3,388,692 3,437,595 3,382,230 3,425,571 3,224,424
Core deposits to total funding (13) 83.7 % 82.6 % 84.0 % 82.4 % 81.6 % 76.1 %
Risk-weighted assets $ 3,780,412 3,751,479 3,693,390 3,711,179 3,639,095 3,679,436
Total assets per full-time equivalent employee $ 6,511 6,580 6,538 6,373 6,384 6,349
Annualized revenues per full-time equivalent employee $ 263.2 262.5 261.3 237.7 230.4 235.0
Number of employees (full-time equivalent) 747.0 740.0 739.0 756.5 769.0 781.0
Associate retention rate (14) 92.0 % 92.6 % 89.6 % 92.4 % 93.5 % 95.2 %
 
Selected economic information (in thousands) (15):
Nashville MSA nonfarm employment 757.3 735.5 738.3 735.5 748.1 741.3
Knoxville MSA nonfarm employment 331.7 327.7 325.1 325.2 326.6 326.7
Nashville MSA unemployment 7.2 % 8.5 % 8.9 % 8.3 % 8.1 % 8.4 %
Knoxville MSA unemployment 6.6 % 7.9 % 8.3 % 7.5 % 7.3 % 7.8 %
Nashville residential median home price $ 168.5 171.6 167.1 166.8 171.0 178.0
Nashville inventory of residential homes for sale 10.6 13.4 14.0 13.0 13.3 14.9
 
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        
           
December September June March December September
(dollars in thousands , except per share data)   2011  

2011
  2011   2011   2010   2010
Reconciliation of certain financial measures:
Tangible assets:
Total assets $ 4,863,951 $ 4,868,905 $ 4,831,333 $ 4,820,991 $ 4,909,004 $ 4,961,603
Less: Goodwill (244,076 ) (244,082 ) (244,083 ) (244,083 ) (244,090 ) (244,097 )
Core deposit and other intangibles   (7,842 )     (8,558 )     (9,273 )     (9,989 )     (10,705 )     (11,450 )
Net tangible assets $ 4,612,033     $ 4,616,265     $ 4,577,976     $ 4,566,919     $ 4,654,208     $ 4,706,056  
 
Tangible equity:
Total stockholders' equity $ 710,145 $ 724,374 $ 699,228 $ 681,226 $ 677,457 $ 686,529
Less: Goodwill (244,076 ) (244,082 ) (244,083 ) (244,083 ) (244,090 ) (244,097 )
Core deposit and other intangibles   (7,842 )     (8,558 )     (9,273 )     (9,989 )     (10,705 )     (11,450 )
Net tangible equity 458,226 471,734 445,872 427,154 422,662 430,982
Less: Preferred stock   (69,097 )     (91,772 )     (91,422 )     (91,094 )     (90,789 )     (90,455 )
Net tangible common equity $ 389,130     $ 379,962     $ 354,449     $ 336,060     $ 331,873     $ 340,527  
 
Ratio of tangible common equity to tangible assets   8.44 %     8.23 %     7.74 %     7.36 %     7.13 %     7.24 %
 
 
For the three months ended
December September June March December September
  2011   2011   2011   2011   2010   2010
 
Net interest income $ 39,293 $ 38,356 $ 37,795 $ 36,020 $ 36,056 $ 36,060
 
Noninterest income 9,727 10,080 9,809 8,324 8,666 8,594
Net gains (losses) on sale of investment securities   133       377       610       (159 )     -       -  
Noninterest income excluding the impact of other net gains (losses) on sale of investment securities $ 9,594     $ 9,703     $ 9,199     $ 8,483     $ 8,666     $ 8,594  
 
Noninterest expense 34,374 35,676 34,357 34,701 36,452 37,774
Other real estate owned expense   4,193       5,079       3,826       4,334       7,874       8,522  
Noninterest expense excluding the impact of other real estate owned expense $ 30,181     $ 30,597     $ 30,532     $ 30,367     $ 28,578     $ 29,252  
 
Adjusted pre-tax pre-provision income (17) $ 18,706     $ 17,462     $ 16,463     $ 14,136     $ 16,145     $ 15,402  
 
 
Efficiency Ratio (4) 70.1 % 73.7 % 72.2 % 78.3 % 81.5 % 84.6 %
 

Efficiency Ratio excluding the impact of other real estate owned expense (4)
61.6 % 63.2 % 64.1 % 68.5 % 63.9 % 65.5 %
 

For the year ended, December 31,
(dollars in thousands)                   2011    
 
Net income available to common stockholders $ 37,073

Reversal of valuation allowance based on net deferred tax assets and liabilities
(22,480 )
Actual 2011 current tax expense   7,242  
$ 21,835  
 

Diluted net income per common share available to common stockholders before impact of reversal of valuation reserve
$ 0.64  
 
 
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.

Copyright Business Wire 2010