FOR IMMEDIATE RELEASE
MEDIA CONTACT: | Sue Atkinson, 615-320-7532 | |
FINANCIAL CONTACT: | Harold Carpenter, 615-744-3742 | |
WEBSITE: | www.pnfp.com |
PINNACLE FINANCIAL EXPANDS
PROFITABILITY IN SECOND QUARTER 2011
PROFITABILITY IN SECOND QUARTER 2011
NASHVILLE, Tenn., July 19, 2011 — Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) today reported that its net income per fully diluted common share available to common stockholders was $0.14 for the quarter ended June 30, 2011, compared to net loss per fully diluted common share available to common stockholders of $0.85 for the quarter ended June 30, 2010, and net income per fully diluted common share available to common shareholders of $0.06 for the quarter ended March 31, 2011.
Net income per fully diluted common share available to common stockholders was $0.20 for the six months ended June 30, 2011, compared to net loss per fully diluted common share available to common stockholders of $1.02 for the first six months of 2010.
“We are pleased with another quarter of progress on our two primary priorities of expanding the core earnings capacity of the firm and aggressively dealing with credit issues,” said M. Terry Turner, Pinnacle’s president and chief executive officer. “We intend to maintain continued and significant progress on key measures of credit quality and core earnings, which include capitalizing on the growth opportunities in the Nashville and Knoxville markets.”
Aggressively Dealing with Credit Issues
During the second quarter, Pinnacle reduced classified assets by $49.1 million, a linked-quarter reduction of 15.4 percent and the fifth consecutive quarter of net reductions. Classified assets are composed primarily of nonperforming assets and potential problem loans. Classified assets are down 43.7 percent from their peak at the end of June 2010.
| • | Nonperforming assets declined by $20.2 million, a linked-quarter reduction of 15.3 percent and the fourth consecutive quarterly reduction. Pinnacle resolved $38.7 million in nonperforming assets during the second quarter of 2011, compared to resolutions of $33.5 million during the first quarter of 2011. | ||
| • | Nonperforming loans declined by $16.6 million during the second quarter of 2011, a linked-quarter reduction of 21.8 percent and the fifth consecutive quarterly reduction. Nonperforming loans are down 49.5 percent from a year ago. Additionally, nonperforming loan inflows decreased from $25.4 million during the first quarter of 2011 to $18.4 million in the second quarter of 2011. | ||
| • | Potential problem loans also decreased from $170.6 million at March 31, 2011, to $148.5 million at June 30, 2011, a linked-quarter decrease of 13.0 percent and the fourth consecutive quarter of net reductions. Potential problem loans are down by 53.3 percent from their peak in June 2010. | ||
| • | Exposure to construction and land development loans declined from $411.5 million at June 30, 2010, to $282.1 million at June 30, 2011, a decrease of 31.4 percent. Construction and land development loans are down 6.2 percent from $300.7 million at March 31, 2011. Residential land development loans declined from $142.3 million at June 30, 2010, to $84.8 million at June 30, 2011. Residential land development loans were $97.5 million at March 31, 2011. |
Expanding the Core Earnings Capacity of the Firm
| • | Net interest margin increased to 3.55 percent for the quarter ended June 30, 2011, from 3.23 percent for the quarter ended June 30, 2010. Net interest margin for the quarter ended March 31, 2011, was 3.40 percent. | ||
| • | Average balances of noninterest bearing deposit accounts were $629 million in the second quarter of 2011, an increase of 5.8 percent over first quarter 2011 average balances of $595 million and an increase of 24.7 percent over the same quarter last year. | ||
| • | Loans at June 30, 2011, were $3.21 billion, a decrease of $10.3 million from $3.22 billion at March 31, 2011. Commercial and industrial loans combined with owner-occupied commercial real estate loans were $1.60 billion at June 30, 2011, an |
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| increase of $6.58 million from $1.59 billion at March 31, 2011, the third consecutive quarter of net growth. | |||
| • | Revenue for the quarter ended June 30, 2011, amounted to $47.60 million, compared to $44.34 million for the first quarter of 2011 and $46.27 million for the same quarter of last year, a linked-quarter increase of 7.1 percent. | ||
| • | Four years after expanding to the Knoxville market, Pinnacle’s operation in Knoxville reached over $500 million in loans at the end of the second quarter 2011. | ||
| • | Income before income taxes and TARP expenses increased from $3.50 million for the quarter ended March 31, 2011, to $6.66 million for the quarter ended June 30, 2011, a 90.3 percent increase. |
“Our second quarter net interest margin of 3.55 percent was achieved primarily by continued reductions in our funding costs as time deposits continue to reprice downward,” Turner said. “We are particularly pleased with the progress we made during the second quarter in resolution of troubled assets, which is also having a positive impact on our margin. As anticipated, we experienced continued reductions in troubled asset inflows and believe those trends will continue into the third quarter.”
Turner also noted that the firm continues to explore the availability of the U.S. Treasury’s Small Business Lending Fund.
“We continue to talk with our regulators about our potential participation in the SBLF,” Turner said. “Although the likelihood of participation is significantly diminished by recent guidance from the U.S. Treasury regarding SBLF eligibility for bank holding companies who, like us, are restricted in their ability to pay dividends without the prior approval of the Federal Reserve, we are encouraged by our second quarter results and remain hopeful that we can repay TARP with minimal dilution to our common shareholders regardless of SBLF participation.”
OTHER SECOND QUARTER 2011 HIGHLIGHTS:
| • | Core Deposits |
| • | Core deposits amounted to $3.18 billion at June 30, 2011, an increase of 14.4 percent from the $2.78 billion at June 30, 2010. Core deposits at March 31, 2011, were $3.11 billion. |
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| • | Operating results |
| • | Net income available to common stockholders for the second quarter of 2011 was $4.84 million, compared to the prior year‘s second quarter net loss available to common stockholders of $27.87 million. First quarter 2011 net income available to common stockholders totaled $2.01 million. | ||
| • | Net interest income for the second quarter of 2011 was $37.80 million, compared to $36.02 million for the first quarter of 2011 and $35.70 million for the same quarter last year. | ||
| • | Noninterest income for the quarter ending June 30, 2011, was $9.8 million (including $0.6 million of net securities gains), compared to $8.3 million (net of $0.2 million of net securities losses) in the prior quarter and $10.6 million (including $2.3 million of net securities gains) the same quarter last year. Excluding the impact of net securities gains, noninterest income was up 8.4 percent on a linked-quarter basis and 10.7 percent over the same quarter last year. | ||
| • | Wealth management revenues, which include investment services, trust and insurance, were $3.41 million during the second quarter of 2011, an increase of 14.7 percent over the same period last year. |
“In addition to our net interest margin increasing to 3.55 percent, our net interest income increased by approximately 4.93 percent from the first quarter results,” said Harold R. Carpenter, Pinnacle’s chief financial officer. “Contributing to this increase were reduced funding costs and the continued reduction in nonperforming assets.”
“We believe we will continue to have opportunities to expand margins in future quarters primarily by reducing the funding cost associated with the firm’s time deposit portfolio,” Carpenter said.
| • | Capital |
| • | At June 30, 2011, Pinnacle’s ratio of tangible common stockholders’ equity to tangible assets was 7.7 percent, compared to 7.1 percent at June 30, 2010, and 7.4 percent at March 31, 2011. At June 30, 2011, Pinnacle’s total |
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| risk-based capital ratio was 15.5 percent, compared to 14.8 percent at June 30, 2010, and 15.2 percent at March 31, 2011. |
| • | Credit quality |
| • | Net charge-offs were $8.61 million for the quarter ended June 30, 2011, down from $33.46 million for the quarter ended June 30, 2010, and $9.73 million for the first quarter of 2011. | ||
| • | The allowance for loan losses represented 2.40 percent of total loans at June 30, 2011, compared to 2.46 percent at March 31, 2011, and 2.61 percent at June 30, 2010. | ||
| • | Nonperforming assets were 3.44 percent of total loans plus other real estate at June 30, 2011, compared to 4.04 percent at March 31, 2011, and 4.77 percent at June 30, 2010. The ratio of the allowance for loan losses to nonperforming loans increased to 128.9 percent at June 30, 2011, from 103.4 percent at March 31, 2011. | ||
| • | Past due loans over 30 days, excluding nonperforming loans, were 0.40 percent of total loans at June 30, 2011, compared to 0.36 percent at March 31, 2011, and 0.66 percent at June 30, 2010. |
The following is a summary of the activity in various nonperforming asset and restructured accruing loan categories for the quarter ended June 30, 2011:
| Payments, | ||||||||||||||||||||
| Balances | Sales and | Balances | ||||||||||||||||||
| (in thousands) | Mar. 31, 2011 | Reductions | Foreclosures | Inflows | June 30, 2011 | |||||||||||||||
| Restructured accruing loans: | ||||||||||||||||||||
| Residential construction and development | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Commercial construction and development | — | — | — | — | — | |||||||||||||||
| Other | 15,285 | (3,402 | ) | — | 1,107 | 12,990 | ||||||||||||||
| Totals | 15,285 | (3,402 | ) | — | 1,107 | 12,990 | ||||||||||||||
| Nonperforming loans: | ||||||||||||||||||||
| Residential construction and development | 12,508 | (1,578 | ) | — | 446 | 11,376 | ||||||||||||||
| Commercial construction and development | 24,391 | (393 | ) | (8,440 | ) | 4,718 | 20,276 | |||||||||||||
| Other | 39,469 | (21,511 | ) | (3,166 | ) | 13,283 | 28,075 | |||||||||||||
| Totals | 76,368 | (23,482 | ) | (11,606 | ) | 18,447 | 59,727 | |||||||||||||
| Other real estate: | ||||||||||||||||||||
| Residential construction and development | 18,611 | (2,847 | ) | — | — | 15,764 | ||||||||||||||
| Commercial construction and development | 25,013 | (6,116 | ) | 8,440 | — | 27,337 | ||||||||||||||
| Other | 12,376 | (6,248 | ) | 3,166 | — | 9,294 | ||||||||||||||
| Totals | 56,000 | (15,211 | ) | 11,606 | — | 52,395 | ||||||||||||||
| Total nonperforming assets and restructured accruing loans | $ | 147,653 | $ | (42,095 | ) | $ | — | $ | 19,554 | $ | 125,112 | |||||||||
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| • | Noninterest expense and taxes |
| • | Noninterest expense for the quarter ended June 30, 2011, was $34.36 million, compared to $36.49 million in the second quarter of 2010 and $34.70 million in the first quarter of 2011. | ||
| • | Compensation expense was $18.52 million during the second quarter of 2011, compared to $15.85 million during the second quarter of 2010 and $17.92 million during the first quarter of 2011. | ||
| • | Included in noninterest expense for the second quarter of 2011 was $3.83 million in other real estate expenses, compared to $7.41 million in the second quarter of 2010. First quarter 2011 other real estate expense was approximately $4.33 million. | ||
| • | Included in income tax expense for the second quarter of 2011 was $288,000 related to the resolution of a recently completed federal tax examination for fiscal years 2007-2009. |
Carpenter noted that compensation costs for the second quarter of 2011 increased by 3.35 percent over the first quarter of 2011, driven largely by increased incentive accruals pursuant to the firm’s annual cash incentive plan.
“Given our performance so far this year on credit quality and earnings, the two primary influences on our annual cash incentive payments, we increased our incentive allocation to a potential full payout of our plan award to participating associates,” Carpenter said. “We expect compensation expense to level out for the remainder of the year except for modest increases related to several new relationship managers we are actively recruiting.”
Excluding the impact of OREO expenses, the second quarter of 2011 noninterest expense was approximately $30.53 million, compared to $30.37 million in the first quarter of 2011 and $29.08 million in the second quarter of 2010. Included in the other real estate expense for the quarter was $1.6 million of additional write downs of existing balances based on updated appraisals. The firm also recorded $796,000 in losses related to the disposition of $15.2 million of other real estate properties. Carpenter noted that the firm anticipates foreclosures of approximately $20 million in the third quarter of 2011 but that final resolution of several larger properties will affect other real estate balances for the third quarter.
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“We made meaningful progress during the second quarter on our priorities of improving the core earnings capacity of the firm and aggressively dealing with credit issues, and we would expect continued progress on those priorities in the third quarter,” Carpenter said.
WEBCAST AND CONFERENCE CALL INFORMATION
Pinnacle will host a webcast and conference call at 8:30 a.m. (CDT) on Wednesday, July 20, 2011, to discuss second 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 $4.83 billion in assets at June 30, 2011. In 2007, Pinnacle launched an expansion into Knoxville, Tennessee. At June 30, 2011, Pinnacle is the second-largest bank holding company headquartered in Tennessee, with 31 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 reduction of Pinnacle Financial’s loan balances, and conversely, the inability of Pinnacle Financial to ultimately 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,
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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 deterioration or lack of sustained growth 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 impact of governmental restrictions on entities participating in the Capital Purchase Program, of the U.S. Department of the Treasury (the “Treasury”); (xiv) further deterioration in the valuation of other real estate owned; (xv) inability to comply with regulatory capital requirements and to secure any required regulatory approvals for capital actions; (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; and (xvii) Pinnacle Financial recording a further valuation allowance related to its deferred tax asset. 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 report on Form 10-Q filed with the Securities and Exchange commission on May 5, 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.
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PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS — UNAUDITED
CONSOLIDATED BALANCE SHEETS — UNAUDITED
| June 30, 2011 | December 31, 2010 | |||||||
ASSETS | ||||||||
| Cash and noninterest-bearing due from banks | $ | 62,316,425 | $ | 40,154,247 | ||||
| Interest-bearing due from banks | 147,703,476 | 140,647,481 | ||||||
| Federal funds sold and other | 6,231,745 | 7,284,685 | ||||||
| Short-term discount notes | — | 499,768 | ||||||
| Cash and cash equivalents | 216,251,646 | 188,586,181 | ||||||
| Securities available-for-sale, at fair value | 922,780,234 | 1,014,316,831 | ||||||
| Securities held-to-maturity (fair value of $2,791,215 and $4,411,856 at June 30, 2011 and December 31, 2010, respectively) | 2,727,272 | 4,320,486 | ||||||
| Mortgage loans held-for-sale | 14,161,572 | 16,206,034 | ||||||
| Loans | 3,207,104,232 | 3,212,440,190 | ||||||
| Less allowance for loan losses | (76,970,502 | ) | (82,575,235 | ) | ||||
| Loans, net | 3,130,133,730 | 3,129,864,955 | ||||||
| Premises and equipment, net | 79,999,621 | 82,374,228 | ||||||
| Other investments | 42,757,144 | 42,282,255 | ||||||
| Accrued interest receivable | 15,723,962 | 16,364,573 | ||||||
| Goodwill | 244,083,193 | 244,090,311 | ||||||
| Core deposit and other intangible assets | 9,273,297 | 10,705,105 | ||||||
| Other real estate owned | 52,395,174 | 59,608,224 | ||||||
| Other assets | 101,045,934 | 100,284,697 | ||||||
| Total assets | $ | 4,831,332,779 | $ | 4,909,003,880 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Deposits: | ||||||||
| Noninterest-bearing | $ | 662,017,752 | $ | 586,516,637 | ||||
| Interest-bearing | 572,465,335 | 573,670,188 | ||||||
| Savings and money market accounts | 1,634,633,008 | 1,596,306,386 | ||||||
| Time | 892,403,408 | 1,076,564,179 | ||||||
| Total deposits | 3,761,519,503 | 3,833,057,390 | ||||||
| Securities sold under agreements to repurchase | 124,513,664 | 146,294,379 | ||||||
| Federal Home Loan Bank advances | 111,190,714 | 121,393,026 | ||||||
| Subordinated debt | 97,476,000 | 97,476,000 | ||||||
| Accrued interest payable | 3,031,394 | 5,197,925 | ||||||
| Other liabilities | 34,373,482 | 28,127,875 | ||||||
| Total liabilities | 4,132,104,757 | 4,231,546,595 | ||||||
Stockholders’ equity: | ||||||||
| Preferred stock, no par value; 10,000,000 shares authorized; 95,000 shares issued and outstanding at June 30, 2011 and December 31, 2010 | 91,422,313 | 90,788,682 | ||||||
| Common stock, par value $1.00; 90,000,000 shares authorized; 34,136,163 issued and outstanding at June 30, 2011 and 33,870,380 issued and outstanding at December 31, 2010 | 34,136,163 | 33,870,380 | ||||||
| Common stock warrants | 3,348,402 | 3,348,402 | ||||||
| Additional paid-in capital | 533,557,342 | 530,829,019 | ||||||
| Retained earnings | 19,864,142 | 12,996,202 | ||||||
| Accumulated other comprehensive income, net of taxes | 16,899,660 | 5,624,600 | ||||||
| Stockholders’ equity | 699,228,022 | 677,457,285 | ||||||
| Total liabilities and stockholders’ equity | $ | 4,831,332,779 | $ | 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 | Six Months Ended | |||||||||||||||
| June 30 | June 30 | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
Interest income: | ||||||||||||||||
| Loans, including fees | $ | 38,905,155 | $ | 40,323,693 | $ | 77,258,636 | $ | 81,398,800 | ||||||||
| Securities: | ||||||||||||||||
| Taxable | 6,479,280 | 8,058,265 | 12,840,179 | 17,145,853 | ||||||||||||
| Tax-exempt | 1,837,811 | 1,985,946 | 3,773,699 | 4,036,199 | ||||||||||||
| Federal funds sold and other | 566,874 | 560,611 | 1,140,880 | 1,037,753 | ||||||||||||
| Total interest income | 47,789,120 | 50,928,515 | 95,013,394 | 103,618,605 | ||||||||||||
Interest expense: | ||||||||||||||||
| Deposits | 8,306,751 | 12,925,139 | 17,730,992 | 26,388,954 | ||||||||||||
| Securities sold under agreements to repurchase | 345,444 | 364,648 | 727,013 | 916,961 | ||||||||||||
| Federal Home Loan Bank advances and other borrowings | 1,341,546 | 1,941,437 | 2,739,377 | 4,055,492 | ||||||||||||
| Total interest expense | 9,993,741 | 15,231,224 | 21,197,382 | 31,361,407 | ||||||||||||
| Net interest income | 37,795,379 | 35,697,291 | 73,816,012 | 72,257,198 | ||||||||||||
Provision for loan losses | 6,587,189 | 30,508,685 | 12,726,327 | 43,734,605 | ||||||||||||
Net interest income after provision for loan losses | 31,208,190 | 5,188,606 | 61,089,685 | 28,522,593 | ||||||||||||
Noninterest income: | ||||||||||||||||
| Service charges on deposit accounts | 2,330,206 | 2,429,200 | 4,591,663 | 4,794,511 | ||||||||||||
| Investment services | 1,637,426 | 1,315,263 | 3,145,512 | 2,551,646 | ||||||||||||
| Insurance sales commissions | 1,004,246 | 904,359 | 2,053,478 | 2,003,378 | ||||||||||||
| Gain on loans sold, net | 789,258 | 908,611 | 1,398,635 | 1,423,809 | ||||||||||||
| Net gain on sale of investment securities | 610,302 | 2,259,124 | 451,199 | 2,623,674 | ||||||||||||
| Trust fees | 769,935 | 754,515 | 1,499,923 | 1,651,088 | ||||||||||||
| Other noninterest income | 2,668,041 | 1,998,082 | 4,993,061 | 4,006,694 | ||||||||||||
| Total noninterest income | 9,809,414 | 10,569,154 | 18,133,471 | 19,054,800 | ||||||||||||
Noninterest expense: | ||||||||||||||||
| Salaries and employee benefits | 18,523,531 | 15,847,121 | 36,447,153 | 32,851,647 | ||||||||||||
| Equipment and occupancy | 5,060,014 | 5,492,406 | 10,066,724 | 10,858,593 | ||||||||||||
| Other real estate owned | 3,825,608 | 7,411,206 | 8,159,726 | 12,813,359 | ||||||||||||
| Marketing and other business development | 766,422 | 793,696 | 1,520,173 | 1,547,614 | ||||||||||||
| Postage and supplies | 545,097 | 700,505 | 1,034,974 | 1,434,044 | ||||||||||||
| Amortization of intangibles | 715,905 | 746,001 | 1,431,809 | 1,492,002 | ||||||||||||
| Other noninterest expense | 4,920,766 | 5,500,424 | 10,397,612 | 11,660,655 | ||||||||||||
| Total noninterest expense | 34,357,343 | 36,491,359 | 69,058,171 | 72,657,914 | ||||||||||||
Income (loss) before income taxes | 6,660,261 | (20,733,599 | ) | 10,164,985 | (25,080,521 | ) | ||||||||||
| Income tax expense | 288,414 | 5,630,431 | 288,414 | 5,106,734 | ||||||||||||
Net Income (loss) | 6,371,847 | (26,364,030 | ) | 9,876,571 | (30,187,255 | ) | ||||||||||
| Preferred dividends | 1,200,694 | 1,200,694 | 2,388,194 | 2,388,194 | ||||||||||||
| Accretion on preferred stock discount | 327,657 | 306,466 | 633,631 | 664,459 | ||||||||||||
Net income (loss) available to common stockholders | $ | 4,843,496 | $ | (27,871,190 | ) | $ | 6,854,746 | $ | (33,239,908 | ) | ||||||
Per share information: | ||||||||||||||||
| Basic net income (loss) per common share available to common stockholders | $ | 0.14 | ($0.85 | ) | $ | 0.21 | ($1.02 | ) | ||||||||
| Diluted net income (loss) per common share available to common stockholders | $ | 0.14 | ($0.85 | ) | $ | 0.20 | ($1.02 | ) | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 33,454,229 | 32,675,221 | 33,410,385 | 32,616,943 | ||||||||||||
| Diluted | 34,095,636 | 32,675,221 | 34,054,746 | 32,616,943 | ||||||||||||
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) | June 30, 2011 | June 30, 2010 | ||||||||||||||||||||||
| Average Balances | Interest | Rates/ Yields | Average Balances | Interest | Rates/ Yields | |||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
| Loans (1) | $ | 3,211,591 | $ | 38,905 | 4.87 | % | $ | 3,418,928 | $ | 40,324 | 4.74 | % | ||||||||||||
| Securities: | ||||||||||||||||||||||||
| Taxable | 779,882 | 6,479 | 3.33 | % | 760,338 | 8,058 | 4.25 | % | ||||||||||||||||
| Tax-exempt (2) | 192,868 | 1,838 | 5.04 | % | 202,063 | 1,986 | 5.20 | % | ||||||||||||||||
| Federal funds sold and other | 163,211 | 567 | 1.50 | % | 146,142 | 561 | 1.65 | % | ||||||||||||||||
| Total interest-earning assets | 4,347,552 | $ | 47,789 | 4.47 | % | 4,527,471 | $ | 50,929 | 4.58 | % | ||||||||||||||
Nonearning assets | ||||||||||||||||||||||||
| Intangible assets | 253,803 | 256,753 | ||||||||||||||||||||||
| Other nonearning assets | 225,376 | 212,224 | ||||||||||||||||||||||
| Total assets | $ | 4,826,731 | $ | 4,996,448 | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||
| Interest checking | $ | 592,374 | $ | 989 | 0.67 | % | $ | 531,157 | $ | 901 | 0.68 | % | ||||||||||||
| Savings and money market | 1,597,216 | 3,789 | 0.95 | % | 1,286,115 | 4,538 | 1.42 | % | ||||||||||||||||
| Time | 904,094 | 3,529 | 1.57 | % | 1,495,347 | 7,486 | 2.01 | % | ||||||||||||||||
| Total interest-bearing deposits | 3,093,684 | 8,307 | 1.08 | % | 3,312,619 | 12,925 | 1.57 | % | ||||||||||||||||
| Securities sold under agreements to repurchase | 175,705 | 345 | 0.79 | % | 210,798 | 365 | 0.69 | % | ||||||||||||||||
| Federal Home Loan Bank advances and | ||||||||||||||||||||||||
| other borrowings | 114,072 | 679 | 2.42 | % | 147,491 | 1,059 | 2.88 | % | ||||||||||||||||
| Subordinated debt | 97,476 | 663 | 2.73 | % | 97,476 | 882 | 3.63 | % | ||||||||||||||||
| Total interest-bearing liabilities | 3,480,937 | 9,994 | 1.15 | % | 3,768,384 | 15,231 | 1.62 | % | ||||||||||||||||
Noninterest-bearing deposits | 628,929 | — | — | 504,354 | — | — | ||||||||||||||||||
| Total deposits and interest-bearing liabilities | 4,109,866 | $ | 9,994 | 0.98 | % | 4,272,738 | $ | 15,231 | 1.43 | % | ||||||||||||||
| Other liabilities | 25,845 | 19,524 | ||||||||||||||||||||||
Stockholders’ equity | 691,020 | 704,186 | ||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 4,826,731 | $ | 4,996,448 | ||||||||||||||||||||
Net interest income | $ | 37,795 | $ | 35,697 | ||||||||||||||||||||
| Net interest spread (3) | 3.32 | % | 2.96 | % | ||||||||||||||||||||
| Net interest margin (4) | 3.55 | % | 3.23 | % | ||||||||||||||||||||
| (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, 2011 would have been 3.49% compared to a net interest spread of 3.15% for the quarter ended June 30, 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
| Six months ended | Six months ended | |||||||||||||||||||||||
| (dollars in thousands) | June 30, 2011 | June 30, 2010 | ||||||||||||||||||||||
| Average | Average | |||||||||||||||||||||||
| Balances | Interest | Rates/ Yields | Balances | Interest | Rates/ Yields | |||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
| Loans (1) | $ | 3,201,381 | $ | 77,259 | 4.87 | % | $ | 3,469,161 | $ | 81,399 | 4.74 | % | ||||||||||||
| Securities: | ||||||||||||||||||||||||
| Taxable | 795,749 | 12,840 | 3.25 | % | 792,192 | 17,146 | 4.36 | % | ||||||||||||||||
| Tax-exempt (2) | 195,694 | 3,774 | 5.13 | % | 205,292 | 4,036 | 5.23 | % | ||||||||||||||||
| Federal funds sold and other | 174,498 | 1,141 | 1.42 | % | 122,565 | 1,037 | 1.85 | % | ||||||||||||||||
| Total interest-earning assets | 4,367,322 | $ | 95,013 | 4.45 | % | 4,589,210 | $ | 103,618 | 4.62 | % | ||||||||||||||
Nonearning assets | ||||||||||||||||||||||||
| Intangible assets | 254,164 | 257,132 | ||||||||||||||||||||||
| Other nonearning assets | 226,131 | 212,914 | ||||||||||||||||||||||
| Total assets | $ | 4,847,617 | $ | 5,059,256 | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||
| Interest checking | $ | 592,365 | $ | 1,944 | 0.66 | % | $ | 503,640 | $ | 1,702 | 0.68 | % | ||||||||||||
| Savings and money market | 1,588,320 | 7,850 | 1.00 | % | 1,268,909 | 8,837 | 1.40 | % | ||||||||||||||||
| Time | 954,646 | 7,937 | 1.68 | % | 1,562,665 | 15,850 | 2.05 | % | ||||||||||||||||
| Total interest-bearing deposits | 3,135,331 | 17,731 | 1.14 | % | 3,335,214 | 26,389 | 1.60 | % | ||||||||||||||||
| Securities sold under agreements to repurchase | 180,561 | 727 | 0.81 | % | 242,530 | 917 | 0.76 | % | ||||||||||||||||
| Federal Home Loan Bank advances and | ||||||||||||||||||||||||
| other borrowings | 113,889 | 1,420 | 2.52 | % | 163,298 | 2,326 | 2.87 | % | ||||||||||||||||
| Subordinated debt | 97,476 | 1,319 | 2.73 | % | 97,476 | 1,729 | 3.58 | % | ||||||||||||||||
| Total interest-bearing liabilities | 3,527,257 | 21,197 | 1.21 | % | 3,838,518 | 31,361 | 1.65 | % | ||||||||||||||||
Noninterest-bearing deposits | 611,885 | — | — | 500,006 | — | — | ||||||||||||||||||
| Total deposits and interest-bearing liabilities | 4,139,142 | $ | 21,197 | 1.03 | % | 4,338,524 | $ | 31,361 | 1.46 | % | ||||||||||||||
| Other liabilities | 21,620 | 15,055 | ||||||||||||||||||||||
Stockholders’ equity | 686,855 | 705,677 | ||||||||||||||||||||||
| $ | 4,847,617 | $ | 5,059,256 | |||||||||||||||||||||
Net interest income | $ | 73,816 | $ | 72,257 | ||||||||||||||||||||
| Net interest spread (3) | 3.24 | % | 2.97 | % | ||||||||||||||||||||
| Net interest margin (4) | 3.47 | % | 3.24 | % | ||||||||||||||||||||
| (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, 2011 would have been 3.42% compared to a net interest spread of 3.16% for the six months ended June 30, 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
SELECTED QUARTERLY FINANCIAL DATA — UNAUDITED
| June | March | December | September | June | March | |||||||||||||||||||
| (dollars in thousands) | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||||
Balance sheet data, at quarter end: | ||||||||||||||||||||||||
| Commercial real estate — mortgage loans | $ | 1,091,283 | 1,102,533 | 1,094,615 | 1,103,261 | 1,125,823 | 1,144,246 | |||||||||||||||||
| Consumer real estate — mortgage loans | 708,280 | 698,693 | 705,487 | 720,140 | 709,121 | 730,247 | ||||||||||||||||||
| Construction and land development loans | 282,064 | 300,697 | 331,261 | 359,729 | 411,455 | 486,296 | ||||||||||||||||||
| Commercial and industrial loans | 1,058,263 | 1,047,754 | 1,012,091 | 995,743 | 1,009,991 | 1,031,512 | ||||||||||||||||||
| Consumer and other | 67,214 | 67,753 | 68,986 | 73,052 | 77,510 | 87,235 | ||||||||||||||||||
| Total loans | 3,207,104 | 3,217,430 | 3,212,440 | 3,251,923 | 3,333,900 | 3,479,536 | ||||||||||||||||||
| Allowance for loan losses | (76,971 | ) | (78,988 | ) | (82,575 | ) | (84,550 | ) | (87,107 | ) | (90,062 | ) | ||||||||||||
| Securities | 925,508 | 984,200 | 1,018,637 | 968,532 | 907,296 | 989,325 | ||||||||||||||||||
| Total assets | 4,831,333 | 4,820,991 | 4,909,004 | 4,961,603 | 4,958,478 | 5,021,689 | ||||||||||||||||||
| Noninterest-bearing deposits | 662,018 | 608,428 | 586,517 | 581,181 | 529,867 | 522,928 | ||||||||||||||||||
| Total deposits | 3,761,520 | 3,731,883 | 3,833,057 | 3,825,634 | 3,853,400 | 3,836,362 | ||||||||||||||||||
| Securities sold under agreements to repurchase | 124,514 | 165,132 | 146,294 | 191,392 | 159,490 | 200,489 | ||||||||||||||||||
| FHLB advances and other borrowings | 111,191 | 111,351 | 121,393 | 121,435 | 131,477 | 157,319 | ||||||||||||||||||
| Subordinated debt | 97,476 | 97,476 | 97,476 | 97,476 | 97,476 | 97,476 | ||||||||||||||||||
| Total stockholders’ equity | 699,228 | 681,226 | 677,457 | 686,529 | 681,915 | 700,261 | ||||||||||||||||||
Balance sheet data, quarterly averages: | ||||||||||||||||||||||||
| Total loans | $ | 3,211,591 | 3,191,076 | 3,217,738 | 3,295,531 | 3,418,928 | 3,520,012 | |||||||||||||||||
| Securities | 972,750 | 1,010,344 | 993,236 | 954,869 | 962,401 | 1,032,957 | ||||||||||||||||||
| Total earning assets | 4,347,552 | 4,387,331 | 4,441,672 | 4,519,956 | 4,527,471 | 4,651,695 | ||||||||||||||||||
| Total assets | 4,826,731 | 4,868,745 | 4,937,181 | 5,001,373 | 4,996,448 | 5,122,773 | ||||||||||||||||||
| Noninterest-bearing deposits | 628,929 | 594,651 | 575,606 | 534,171 | 504,354 | 495,610 | ||||||||||||||||||
| Total deposits | 3,722,613 | 3,772,092 | 3,814,572 | 3,859,124 | 3,816,973 | 3,853,671 | ||||||||||||||||||
| Securities sold under agreements to repurchase | 175,705 | 185,471 | 194,283 | 210,037 | 210,798 | 274,614 | ||||||||||||||||||
| FHLB advances and other borrowings | 114,072 | 113,705 | 121,414 | 126,130 | 147,491 | 179,280 | ||||||||||||||||||
| Subordinated debt | 97,476 | 97,476 | 97,476 | 97,476 | 97,476 | 97,476 | ||||||||||||||||||
| Total stockholders’ equity | 691,020 | 682,638 | 689,976 | 686,898 | 704,186 | 707,210 | ||||||||||||||||||
Statement of operations data, for the three months ended: | ||||||||||||||||||||||||
| Interest income | $ | 47,789 | 47,224 | 49,079 | 50,650 | 50,929 | 52,690 | |||||||||||||||||
| Interest expense | 9,994 | 11,204 | 13,023 | 14,590 | 15,231 | 16,130 | ||||||||||||||||||
| Net interest income | 37,795 | 36,020 | 36,056 | 36,060 | 35,697 | 36,560 | ||||||||||||||||||
| Provision for loan losses | 6,587 | 6,139 | 5,172 | 4,789 | 30,509 | 13,226 | ||||||||||||||||||
| Net interest income after provision for loan losses | 31,208 | 29,881 | 30,884 | 31,271 | 5,189 | 23,334 | ||||||||||||||||||
| Noninterest income | 9,809 | 8,324 | 8,666 | 8,594 | 10,569 | 8,486 | ||||||||||||||||||
| Noninterest expense | 34,357 | 34,701 | 36,452 | 37,774 | 36,491 | 36,167 | ||||||||||||||||||
| Income (loss) before taxes | 6,660 | 3,504 | 3,098 | 2,091 | (20,734 | ) | (4,347 | ) | ||||||||||||||||
| Income tax expense (benefit) | 288 | — | (697 | ) | — | 5,630 | (525 | ) | ||||||||||||||||
| Preferred dividends and accretion | 1,529 | 1,492 | 1,547 | 1,542 | 1,507 | 1,545 | ||||||||||||||||||
| Net income (loss) available to common stockholders | $ | 4,843 | 2,011 | 2,248 | 549 | (27,871 | ) | (5,368 | ) | |||||||||||||||
Profitability and other ratios: | ||||||||||||||||||||||||
| Return on avg. assets (1) | 0.40 | % | 0.17 | % | 0.18 | % | 0.04 | % | (2.24 | %) | (0.42 | %) | ||||||||||||
| Return on avg. equity (1) | 2.81 | % | 1.19 | % | 1.29 | % | 0.32 | % | (15.88 | %) | (3.08 | %) | ||||||||||||
| Net interest margin (1) (2) | 3.55 | % | 3.40 | % | 3.29 | % | 3.23 | % | 3.23 | % | 3.25 | % | ||||||||||||
| Noninterest income to total revenue (3) | 20.61 | % | 18.77 | % | 19.38 | % | 19.25 | % | 22.84 | % | 18.84 | % | ||||||||||||
| Noninterest income to avg. assets (1) | 0.82 | % | 0.69 | % | 0.70 | % | 0.68 | % | 0.85 | % | 0.67 | % | ||||||||||||
| Noninterest exp. to avg. assets (1) | 2.86 | % | 2.89 | % | 2.93 | % | 3.00 | % | 2.93 | % | 2.86 | % | ||||||||||||
| Efficiency ratio (4) | 72.17 | % | 78.25 | % | 81.51 | % | 84.59 | % | 78.87 | % | 80.29 | % | ||||||||||||
| Avg. loans to average deposits | 86.27 | % | 84.60 | % | 84.35 | % | 85.40 | % | 89.57 | % | 91.34 | % | ||||||||||||
| Securities to total assets | 19.16 | % | 20.41 | % | 20.75 | % | 19.52 | % | 18.30 | % | 19.70 | % | ||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 124.90 | % | 122.75 | % | 121.62 | % | 120.26 | % | 120.14 | % | 118.99 | % | ||||||||||||
| Brokered time deposits to total deposits (16) | 0.00 | % | 0.00 | % | 0.03 | % | 1.80 | % | 3.70 | % | 5.40 | % | ||||||||||||
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
SELECTED QUARTERLY FINANCIAL DATA — UNAUDITED
| June | March | December | September | June | March | |||||||||||||||||||
| (dollars in thousands) | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||||
Asset quality information and ratios: | ||||||||||||||||||||||||
| Nonperforming assets: | ||||||||||||||||||||||||
| Nonaccrual loans | $ | 59,727 | 76,368 | 80,863 | 103,127 | 118,331 | 131,381 | |||||||||||||||||
| Other real estate (ORE) | 52,395 | 56,000 | 59,608 | 48,710 | 42,616 | 24,704 | ||||||||||||||||||
| Total nonperforming assets | $ | 112,122 | 132,368 | 140,471 | 151,837 | 160,947 | 156,085 | |||||||||||||||||
| Past due loans over 90 days and still accruing interest | $ | 481 | 1,151 | 138 | 3,639 | 3,116 | 395 | |||||||||||||||||
| Restructured accruing loans (5) | 12,990 | 15,285 | 20,468 | 13,468 | 10,861 | 9,534 | ||||||||||||||||||
| Net loan charge-offs | $ | 8,605 | 9,726 | 7,146 | 7,346 | 33,463 | 15,123 | |||||||||||||||||
| Allowance for loan losses to nonaccrual loans | 128.9 | % | 103.4 | % | 102.1 | % | 82.0 | % | 73.6 | % | 68.5 | % | ||||||||||||
| As a percentage of total loans: | ||||||||||||||||||||||||
| Past due accruing loans over 30 days | 0.40 | % | 0.36 | % | 0.30 | % | 0.67 | % | 0.66 | % | 1.54 | % | ||||||||||||
| Potential problem loans (6) | 4.62 | % | 5.31 | % | 6.95 | % | 8.23 | % | 9.30 | % | 8.63 | % | ||||||||||||
| Allowance for loan losses | 2.40 | % | 2.46 | % | 2.57 | % | 2.60 | % | 2.61 | % | 2.59 | % | ||||||||||||
| Nonperforming assets to total loans and ORE | 3.44 | % | 4.04 | % | 4.29 | % | 4.60 | % | 4.77 | % | 4.45 | % | ||||||||||||
| Nonperforming assets to total assets | 2.32 | % | 2.75 | % | 2.86 | % | 3.06 | % | 3.25 | % | 3.11 | % | ||||||||||||
| Annualized net loan charge-offs year-to-date to avg. loans (7) | 1.14 | % | 1.22 | % | 1.96 | % | 2.26 | % | 2.84 | % | 1.74 | % | ||||||||||||
| Avg. commercial loan internal risk ratings (6) | 4.8 | 4.8 | 4.8 | 4.9 | 4.9 | 4.9 | ||||||||||||||||||
Interest rates and yields: | ||||||||||||||||||||||||
| Loans | 4.87 | % | 4.88 | % | 4.99 | % | 4.96 | % | 4.74 | % | 4.74 | % | ||||||||||||
| Securities | 3.67 | % | 3.58 | % | 3.48 | % | 3.97 | % | 4.45 | % | 4.63 | % | ||||||||||||
| Total earning assets | 4.47 | % | 4.43 | % | 4.45 | % | 4.51 | % | 4.58 | % | 4.66 | % | ||||||||||||
| Total deposits, including non-interest bearing | 0.90 | % | 1.01 | % | 1.16 | % | 1.27 | % | 1.36 | % | 1.42 | % | ||||||||||||
| Securities sold under agreements to repurchase | 0.79 | % | 0.83 | % | 0.81 | % | 0.82 | % | 0.69 | % | 0.82 | % | ||||||||||||
| FHLB advances and other borrowings | 2.42 | % | 2.65 | % | 2.60 | % | 2.90 | % | 2.88 | % | 2.87 | % | ||||||||||||
| Subordinated debt | 2.73 | % | 2.73 | % | 2.72 | % | 3.78 | % | 3.63 | % | 3.52 | % | ||||||||||||
| Total deposits and interest-bearing liabilities | 0.98 | % | 1.09 | % | 1.22 | % | 1.35 | % | 1.43 | % | 1.49 | % | ||||||||||||
Capital ratios (8): | ||||||||||||||||||||||||
| Stockholders’ equity to total assets | 14.5 | % | 14.1 | % | 13.8 | % | 13.8 | % | 13.8 | % | 13.9 | % | ||||||||||||
| Leverage | 11.2 | % | �� | 11.0 | % | 10.7 | % | 10.5 | % | 10.4 | % | 10.6 | % | |||||||||||
| Tier one risk-based | 13.9 | % | 13.6 | % | 13.8 | % | 13.5 | % | 13.1 | % | 13.4 | % | ||||||||||||
| Total risk-based | 15.5 | % | 15.2 | % | 15.4 | % | 15.1 | % | 14.8 | % | 15.0 | % | ||||||||||||
| Tangible common equity to tangible assets | 7.7 | % | 7.4 | % | 7.1 | % | 7.2 | % | 7.1 | % | 7.4 | % | ||||||||||||
| Tangible common equity to risk weighted assets | 9.6 | % | 9.1 | % | 9.1 | % | 9.3 | % | 9.0 | % | 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
SELECTED QUARTERLY FINANCIAL DATA — UNAUDITED
| June | March | December | September | June | March | |||||||||||||||||||
| (dollars in thousands, except per share data) | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||||
Per share data: | ||||||||||||||||||||||||
| Earnings (loss) — basic | $ | 0.14 | 0.06 | 0.07 | 0.02 | (0.85 | ) | (0.16 | ) | |||||||||||||||
| Earnings (loss) — diluted | $ | 0.14 | 0.06 | 0.07 | 0.02 | (0.85 | ) | (0.16 | ) | |||||||||||||||
| Book value per common share at quarter end (9) | $ | 17.71 | 17.19 | 17.22 | 17.61 | 17.61 | 18.20 | |||||||||||||||||
| Tangible common equity per common share | $ | 10.38 | 9.85 | 9.80 | 10.12 | 10.04 | 10.60 | |||||||||||||||||
| Weighted avg. common shares — basic | 33,454,229 | 33,366,053 | 33,062,533 | 32,857,428 | 32,675,221 | 32,558,016 | ||||||||||||||||||
| Weighted avg. common shares — diluted | 34,095,636 | 34,013,810 | 33,670,890 | 33,576,963 | 32,675,221 | 32,558,016 | ||||||||||||||||||
| Common shares outstanding | 34,136,163 | 34,132,256 | 33,870,380 | 33,660,462 | 33,421,741 | 33,351,118 | ||||||||||||||||||
Investor information: | ||||||||||||||||||||||||
| Closing sales price | $ | 15.56 | 16.54 | 13.58 | 9.19 | 12.85 | 15.11 | |||||||||||||||||
| High closing sales price during quarter | $ | 16.82 | 16.60 | 13.74 | 14.33 | 18.93 | 16.88 | |||||||||||||||||
| Low closing sales price during quarter | $ | 14.15 | 13.55 | 9.27 | 8.51 | 11.81 | 13.10 | |||||||||||||||||
Other information: | ||||||||||||||||||||||||
| Gains on sale of loans and loan participations sold: | ||||||||||||||||||||||||
| Mortgage loan sales: | ||||||||||||||||||||||||
| Gross loans sold | $ | 68,506 | 70,981 | 143,793 | 137,094 | 92,144 | 72,196 | |||||||||||||||||
| Gross fees (10) | $ | 1,380 | 1,129 | 2,610 | 2,503 | 1,669 | 1,157 | |||||||||||||||||
| Gross fees as a percentage of mortgage loans originated | 2.01 | % | 1.59 | % | 1.81 | % | 1.83 | % | 1.81 | % | 1.60 | % | ||||||||||||
| Gains (losses) on sales of investment securities, net | $ | 610 | (159 | ) | — | — | 2,259 | 365 | ||||||||||||||||
| Brokerage account assets, at quarter-end (11) | $ | 1,101,000 | 1,110,000 | 1,038,000 | 966,000 | 921,000 | 974,000 | |||||||||||||||||
| Trust account assets, at quarter-end | $ | 663,304 | 730,000 | 693,000 | 647,000 | 627,000 | 648,000 | |||||||||||||||||
| Floating rate loans as a percentage of total loans (12) | 34.7 | % | 35.4 | % | 36.9 | % | 37.9 | % | 37.8 | % | 38.9 | % | ||||||||||||
| Balance of commercial loan participations sold to other banks and serviced by Pinnacle, at quarter end | $ | 50,797 | 60,784 | 55,632 | 57,964 | 66,503 | 78,529 | |||||||||||||||||
| Core deposits (13) | $ | 3,182,920 | 3,109,972 | 3,117,969 | 2,925,673 | 2,781,748 | 2,676,016 | |||||||||||||||||
| Core deposits to total funding (13) | 77.7 | % | 75.7 | % | 74.3 | % | 69.0 | % | 65.2 | % | 62.4 | % | ||||||||||||
| Risk-weighted assets | $ | 3,693,390 | 3,711,179 | 3,639,095 | 3,679,436 | 3,748,498 | 3,878,884 | |||||||||||||||||
| Total assets per full-time equivalent employee | $ | 6,538 | 6,373 | 6,384 | 6,349 | 6,229 | 6,389 | |||||||||||||||||
| Annualized revenues per full-time equivalent employee | $ | 261.3 | 237.7 | 230.4 | 235.0 | 233.1 | 232.4 | |||||||||||||||||
| Number of employees (full-time equivalent) | 739.0 | 756.5 | 769.0 | 781.0 | 796.0 | 786.0 | ||||||||||||||||||
| Associate retention rate (14) | 89.6 | % | 92.4 | % | 93.5 | % | 95.2 | % | 97.3 | % | 96.6 | % | ||||||||||||
Selected economic information (in thousands) (15): | ||||||||||||||||||||||||
| Nashville MSA nonfarm employment | 743.8 | 735.5 | 748.1 | 741.3 | 728.8 | 723.7 | ||||||||||||||||||
| Knoxville MSA nonfarm employment | 328.8 | 325.2 | 326.6 | 326.7 | 321.7 | 317.8 | ||||||||||||||||||
| Nashville MSA unemployment | 8.5 | % | 8.3 | % | 8.1 | % | 8.4 | % | 9.0 | % | 9.5 | % | ||||||||||||
| Knoxville MSA unemployment | 7.7 | % | 7.5 | % | 7.3 | % | 7.8 | % | 8.1 | % | 8.8 | % | ||||||||||||
| Nashville residential median home price | $ | 167.1 | 166.8 | 171.0 | 178.0 | 171.3 | 159.4 | |||||||||||||||||
| Nashville inventory of residential homes for sale | 14.0 | 13.0 | 13.3 | 14.9 | 14.9 | 14.1 | ||||||||||||||||||
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
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA — UNAUDITED
| June | March | December | September | June | March | |||||||||||||||||||
| (dollars in thousands,except per share data) | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||||
Reconciliation of certain financial measures: | ||||||||||||||||||||||||
| Tangible assets: | ||||||||||||||||||||||||
| Total assets | $ | 4,831,333 | $ | 4,820,991 | $ | 4,909,004 | $ | 4,961,603 | $ | 4,958,478 | $ | 5,021,689 | ||||||||||||
| Less: Goodwill | (244,083 | ) | (244,083 | ) | (244,090 | ) | (244,097 | ) | (244,097 | ) | (244,105 | ) | ||||||||||||
| Core deposit and other intangibles | (9,273 | ) | (9,989 | ) | (10,705 | ) | (11,450 | ) | (12,194 | ) | (12,940 | ) | ||||||||||||
| Net tangible assets | $ | 4,577,976 | $ | 4,566,919 | $ | 4,654,208 | $ | 4,706,056 | $ | 4,702,187 | $ | 4,764,644 | ||||||||||||
| Tangible equity: | ||||||||||||||||||||||||
| Total stockholders’ equity | $ | 699,228 | $ | 681,226 | $ | 677,457 | $ | 686,529 | $ | 681,915 | $ | 700,261 | ||||||||||||
| Less: Goodwill | (244,083 | ) | (244,083 | ) | (244,090 | ) | (244,097 | ) | (244,097 | ) | (244,105 | ) | ||||||||||||
| Core deposit and other intangibles | (9,273 | ) | (9,989 | ) | (10,705 | ) | (11,450 | ) | (12,194 | ) | (12,940 | ) | ||||||||||||
| Net tangible equity | 445,872 | 427,154 | 422,662 | 430,982 | 425,624 | 443,216 | ||||||||||||||||||
| Less: Preferred stock | (91,422 | ) | (91,094 | ) | (90,789 | ) | (90,455 | ) | (90,127 | ) | (89,821 | ) | ||||||||||||
| Net tangible common equity | $ | 354,449 | $ | 336,060 | $ | 331,873 | $ | 340,527 | $ | 335,497 | $ | 353,395 | ||||||||||||
Ratio of tangible common equity to tangible assets | 7.74 | % | 7.36 | % | 7.13 | % | 7.24 | % | 7.13 | % | 7.42 | % | ||||||||||||
Tangible common equity per common share | $ | 10.38 | $ | 9.85 | $ | 9.80 | $ | 10.12 | $ | 10.04 | $ | 10.60 | ||||||||||||
Return on tangible equity(1) | 4.36 | % | 1.91 | % | 2.11 | % | 0.51 | % | -26.27 | % | -4.91 | % | ||||||||||||
Return on tangible common equity(1) | 5.48 | % | 2.43 | % | 2.69 | % | 0.64 | % | -33.32 | % | -6.16 | % | ||||||||||||
| For the three months ended | ||||||||||||||||||||||||
| June | March | December | September | June | March | |||||||||||||||||||
| (dollars in thousands) | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||||
| Sum of Net interest income and Noninterest income | $ | 47,605 | $ | 44,344 | $ | 44,722 | $ | 44,653 | $ | 46,266 | $ | 45,046 | ||||||||||||
| Noninterest expense | $ | 34,357 | $ | 34,701 | $ | 36,452 | $ | 37,774 | $ | 36,491 | $ | 36,167 | ||||||||||||
| Other real estate owned expense | 3,826 | 4,334 | 7,874 | 8,522 | 7,411 | 5,402 | ||||||||||||||||||
| Noninterest expense excluding the impact of other real estate owned expense | $ | 30,532 | $ | 30,367 | $ | 28,578 | $ | 29,252 | $ | 29,080 | $ | 30,765 | ||||||||||||
Efficiency Ratio | 72.2 | % | 78.3 | % | 81.5 | % | 84.6 | % | 78.9 | % | 80.3 | % | ||||||||||||
Efficiency Ratio excluding the impact of other real estate owned expense | 64.1 | % | 68.5 | % | 63.9 | % | 65.5 | % | 62.9 | % | 68.3 | % | ||||||||||||
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
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. | Restructured Accruing Loans 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 period of time, extending the maturity of the loan, etc.). These loans continue to accrue interest at the contractual rate and are considered to be troubled debt restructurings. | |
| 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 the sale of loans and loan participations sold”, 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 $100,000. 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). |