Exhibit 99.1
FOR IMMEDIATE RELEASE
MEDIA CONTACT: | Jenny Barker 615-319-5857 | |
FINANCIAL CONTACT: | Harold Carpenter 615-744-3742 | |
WEBSITE: | www.pnfp.com |
PINNACLE FINANCIAL REPORTS RECORD LOAN GROWTH,
STRONG ASSET QUALITY AND EARNINGS OF $0.26
PER FULLY DILUTED SHARE FOR FIRST QUARTER OF 2008
Fully diluted earnings per share of $0.34, excluding merger related expense
STRONG ASSET QUALITY AND EARNINGS OF $0.26
PER FULLY DILUTED SHARE FOR FIRST QUARTER OF 2008
Fully diluted earnings per share of $0.34, excluding merger related expense
NASHVILLE,Tenn., April 14, 2008 — Pinnacle Financial Partners Inc. (Nasdaq/NGS: PNFP) today reported strong earnings and continued rapid loan growth for the quarter ended March 31, 2008. Fully diluted earnings per share were $0.26 for the quarter ended March 31, 2008, compared to $0.34 per fully diluted share for the quarter ended March 31, 2007. Excluding merger related expense associated with its recent acquisition of Mid-America Bancshares Inc. on Nov. 30, 2007, fully diluted earnings per share were $0.34 for the quarter ended March 31, 2008.
Pinnacle also reported a record $117 million in organic loan growth in the first quarter of 2008 which contributed to a higher provision for loan loss expense for the first quarter of 2008 when compared to the same quarter last year. Organic loan growth for the first quarter of 2008 represented a 108 percent increase over the $56 million reported in the same quarter of 2007.
FIRST QUARTER 2008 HIGHLIGHTS:
• | Earnings: |
• | Net income for the first quarter of 2008 was $6.1 million, up 8.3 percent from the prior year’s first quarter net income of $5.6 million. Excluding merger related expense, net income was $8.0 million up 42.0 percent over the same period last year. |
• | Revenue (the sum of net interest income and noninterest income) for the quarter ended March 31, 2008, amounted to $35.7 million, compared to $22.1 million for the same quarter of last year, an increase of 61.6 percent. |
• | Superior credit quality: |
• | Annualized net charge-offs as a percentage of average loan balances were 0.03 percent for the quarter ended March 31, 2008. | ||
• | Nonperforming assets were 0.72 percent of total loans and other real estate at March 31, 2008, compared to 0.78 percent at Dec. 31, 2007 and 0.36 percent at March 31, 2007. Approximately $11.2 million of the $20.7 million of nonperforming assets at March 31, 2008 were attributable to the Mid-America acquisition which closed on Nov. 30 of last year. | ||
• | Past due loans over 30 days, excluding nonperforming loans, were 0.77 percent of total loans and other real estate at March 31, 2008, compared to 0.45 percent at Dec. 31, 2007 and 0.33 percent at March 31, 2007. |
• | Strong balance sheet growth: |
• | Loans at March 31, 2008, were $2.87 billion, up $1.32 billion from $1.55 billion at March 31, 2007. This increase in loans includes $456 million, or 29.4 percent, in organic growth and $864 million in loans acquired in conjunction with the Mid-America merger. | ||
• | Total deposits at March 31, 2008, were $2.97 billion, up $1.27 million from $1.70 billion at March 31, 2007. The increase includes $313 million, or 18.4 percent, in organic growth and $957 million in deposits acquired in conjunction with the Mid-America merger. |
• | Investments in future growth: |
• | Pinnacle has hired 23 highly experienced associates for its denovo expansion to Knoxville that was announced on April 9, 2007. Loans outstanding at March 31, 2008, were $159 million which is $28 million ahead of our target disclosed at the time the Knoxville expansion was announced. Pinnacle anticipates opening another full service Knoxville location during the last half of 2008. Costs of the Knoxville expansion negatively impacted earnings in the first quarter of 2008 by approximately $0.02 per fully-diluted share. |
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• | Pinnacle’s total associate base at March 31, 2008, was 686 full-time equivalents (FTEs). Approximately 220 FTEs were added to Pinnacle’s associate base in conjunction with the Mid-America merger which closed on Nov. 30 of last year. During the quarter ended March 31, 2008, Pinnacle eliminated 19 positions in conjunction with its merger integration plans, substantially all of which occurred subsequent to the systems conversions which occurred on Feb. 29, 2008. Pinnacle also anticipates hiring 40 associates during the remainder of 2008. |
• | Market Data: |
• | Based on FDIC market share data as of June 30, 2007, completion of the Mid-America acquisition provides Pinnacle with a No. 4 market share position in the Nashville MSA with only 8.7 percent of deposits leaving significant opportunity for continued dramatic growth. This places Pinnacle behind Regions, SunTrust and Bank of America — all out-of-state regional banks with negative market share trends in Nashville. | ||
• | According to the American Legislative Exchange Council’s 2007 report “Rich States, Poor States — ALEC Laffer State Economic Competitive Index,” Tennessee ranked 5th in the nation on the report’s Economic Outlook rankings. |
“Hiring the best, most experienced bankers in our markets continues to give Pinnacle a significant advantage over our competition,” said M. Terry Turner, Pinnacle’s president and CEO. “Since inception in 2000, we have recruited more than 300 bankers with an average experience of 24 years. In addition, we have added a large pool of senior professionals through our acquisitions of Cavalry Bancorp in 2006 and Mid-America Bancshares Inc. in 2007. At a time when most banks are experiencing slowing loan demand and increasing credit costs, Pinnacle’s first quarter organic loan growth was the largest in the firm’s history and our charge-offs were only 0.03 percent of average loans. The loan growth and the strong credit quality are indicators of what a good job our team is doing to outperform in the marketplace and to manage risks in the midst of very challenging economic conditions.”
“Another indicator of the strength of our team was the highly successful and smooth conversion of the two Mid-America subsidiaries, PrimeTrust Bank and Bank of the South to
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the Pinnacle systems and brand in the first quarter,” said Turner. “We were able to complete the integration with virtually no disruption to service quality and at the same time, produce greater loan growth during the first quarter of 2008 than Pinnacle, PrimeTrust and Bank of the South were able to produce on a pro forma combined basis the same quarter last year.”
FINANCIAL PERFORMANCE AND BALANCE SHEET GROWTH
• | Return on average assets for first quarter 2008 was 0.65 percent compared to 1.06 percent for the first quarter of 2007. Excluding the impact of the Knoxville expansion and Mid-America merger related expense, return on average assets for the first quarter of 2008 would have approximated 0.89 percent. | ||
• | Return on average stockholders’ equity for the quarter ended March 31, 2008, was 5.14 percent compared to 8.76 percent for the first quarter of 2007. Excluding the impact of the Knoxville expansion and Mid-America merger related expense, return on average stockholders’ equity for the first quarter of 2008 would have approximated 7.10 percent. | ||
• | Return on average tangible stockholders’ equity (average stockholders’ equity less goodwill and core deposit intangibles) for the quarter ended March 31, 2008, was 11.31 percent. Excluding the impact of the Knoxville expansion and Mid-America merger related expense, return on average tangible stockholders’ equity for the first quarter of 2008 would have approximated 15.62 percent. |
Total assets grew to $3.89 billion as of March 31, 2008, up $1.70 billion from the $2.19 billion reported at the same time last year. The increase in assets includes $444 million in organic growth and $1.25 billion in assets acquired in conjunction with the Mid-America merger in November of last year. The securities to total assets ratio decreased from 15.51 percent at March 31, 2007, to 13.00 percent at March 31, 2008.
CREDIT QUALITY
• | Provision for loan losses was $1.59 million for the first quarter of 2008, compared to $788,000 in the first quarter of 2007. |
• | During the first quarter of 2008, the firm recorded net charge-offs of $190,000, compared to net charge-offs of $114,000 during the same period |
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in 2007. Annualized net charge-offs to total average loans were 0.03 percent for the quarters ended March 31, 2008 and March 31, 2007. |
• | The increase in provision for loan loss expense between the first quarter of 2008 and the first quarter of 2007 was primarily due to the increase in loan balances recorded during the first quarter of 2008 over the amount recorded in the first quarter of 2007. |
• | Allowance for loan losses represented 1.04 percent of total loans at March 31, 2008, compared to 1.08 percent a year ago. |
• | The ratio of the allowance for loan losses to nonperforming loans was 174 percent at March 31, 2008, compared to 145 percent at Dec. 31, 2007 and 357 percent at March 31, 2007. |
“Although Nashville’s residential real estate market overall is not as vibrant when compared to a year ago, the decline has not been as great as in other large urban markets in the Southeast and around the country. We are pleased that the results of increased monitoring and oversight of our real estate practices and portfolio are helping to ensure we maintain our asset quality metrics,” said Turner.
As noted above, Pinnacle reported that nonperforming loans and other real estate as a percentage of total loans and other real estate decreased from 0.78 percent at Dec. 31, 2007 to 0.72 percent at March 31, 2008. The following is a summary of the activity in various nonperforming asset categories for the quarter ended March 31, 2008 (in thousands):
Balances | Payments and | Balances | ||||||||||||||
Dec. 31, 2007 | Reductions | Increases | March 31, 2008 | |||||||||||||
Nonperforming loans: | ||||||||||||||||
Residential construction | $ | 10,204 | $ | 2,689 | $ | 1,300 | $ | 8,815 | ||||||||
Other | 9,473 | 2,400 | 1,236 | 8,309 | ||||||||||||
Totals | 19,677 | 5,089 | 2,536 | 17,124 | ||||||||||||
Other real estate: | ||||||||||||||||
Residential construction | 981 | 963 | 2,300 | 2,318 | ||||||||||||
Other | 692 | — | 557 | 1,249 | ||||||||||||
Totals | 1,673 | 963 | 2,857 | 3,567 | ||||||||||||
Total nonperforming assets | $ | 21,350 | $ | 6,052 | $ | 5,393 | $ | 20,691 | ||||||||
REVENUE
• | Net interest income for first quarter 2008 was $27.4 million, compared to $17.1 million for the same quarter last year, an increase of 60.2 percent. |
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• | Net interest margin for the first quarter of 2008 was 3.37 percent, compared to a net interest margin of 3.64 percent for the same period last year. |
• | Noninterest income for first quarter 2008 was $8.4 million, a 66.5 percent increase over the $5.0 million recorded during the same quarter in 2007. |
“We anticipated the decrease in our margin during the first quarter of 2008,” said Harold Carpenter, chief financial officer of Pinnacle Financial Partners. “We have traditionally maintained an asset sensitive balance sheet; thus with anticipated future Federal funds rate decreases, we believe our margins could continue to contract dependent upon the timing and extent of the future rate decreases. We will continue to work to mitigate the impact of these decreases by reducing the cost of our funding sources to the extent possible. Additionally, our loan pipelines remain robust, which should provide increased core revenue growth in future periods.”
The 66.5 percent increase in noninterest income between the first quarter of 2008 and the first quarter of 2007 was due primarily to increased noninterest income from the Mid-America merger, record investment sales commissions from Pinnacle Asset Management and record gains on the sales of mortgage loans from the firm’s mortgage origination unit. During the first quarter of 2008, Pinnacle’s mortgage origination unit sold $59.8 million of mortgage loans compared to $31.0 million in 2007, an increase of 92.5 percent.
Noninterest income during the first quarter of 2008 represented approximately 23.4 percent of total revenues, compared to 22.7 percent for the same quarter in 2007.
NONINTEREST EXPENSE
• | Noninterest expense for the quarter ended March 31, 2008, was $25.5 million ($22.4 million, excluding merger expenses) compared to $13.1 million in the first quarter of 2007. Approximately $814,000 of noninterest expense was associated with the Knoxville expansion. | ||
• | Compensation expense increased to $13.9 million during the first quarter of 2008, compared to $8.3 million during the first quarter of 2007, an increase of 67.7 percent. Total full-time equivalent employees were 686.0 at March 31, 2008 compared to 702.0 at Dec. 31, 2007 and 419.5 at March 31, 2007. |
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• | Merger related expense was $3.1 million during the quarter ended March 31, 2008 and was composed primarily of $1.4 million in retention bonus accruals for former Mid-America associates, $876,000 in conversion related incentive payments and other personnel costs, $637,000 in information technology conversion matters and $148,000 in other integration charges. | ||
• | The efficiency ratio (noninterest expense divided by net interest income and noninterest income) was 71.4 percent during the first quarter of 2008 compared to 62.1 percent for the fourth quarter of 2007 and 59.4 percent in the first quarter of 2007. Excluding merger related expenses, the efficiency ratio was 62.7 percent in the first quarter of 2008. |
Carpenter noted that linked quarter expense growth of $7.7 million between the fourth quarter of 2007 and first quarter of 2008 was primarily attributable to increased expenses from the Mid-America merger as Mid-America was in effect for a full quarter versus one month in the fourth quarter of 2007. Other causes for the increased expense in the first quarter of 2008 were the firm’s traditional salary increases virtually all of which occur in January of each year and increasing variable costs associated with the dramatic growth of the firm.
PROGRESS OF THE MID-AMERICA ACQUISITION
On Aug. 15, 2007, Pinnacle reported that the firm had entered into a definitive agreement to acquire the stock of Mid-America Bancshares Inc., a two-bank holding company headquartered in Nashville, Tenn., with assets of approximately $1.1 billion. Pinnacle completed the acquisition of Mid-America on Nov. 30, 2007.
“At this point, we have completed or planned actions that should enable us to achieve our $7 million first-year synergy target,” said Turner. “We were extraordinarily successful in the recently completed systems conversions that occurred over the weekend of March 1, 2008.” Turner noted key success measures were:
• | on-time completion of the training schedule, | ||
• | on-time systems conversions, | ||
• | host system up-time during the month of March of 99.85 percent, and | ||
• | less than $15,000 in operational outages related to the conversion. |
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INVESTMENT OUTLOOK
Management has developed several financial forecast scenarios for the next several quarters. Based on anticipated growth trends and future investments in the franchise, including the impact of the Knoxville expansion, Pinnacle estimates its second quarter 2008 diluted earnings per share will approximate $0.32 to $0.36 including merger related expense or $0.36 to $0.40, excluding merger related expense and that its 2008 diluted earnings per share will approximate $1.44 to $1.53 including merger related expense or $1.56 to $1.65, excluding merger related expense. Pinnacle noted that its second quarter 2008 results will also be impacted by yet to be realized synergies from Mid-America.
Merger related expense should approximate $4.75 million for the remainder of 2008 with substantially all of the amount being attributable to retention awards for former Mid-America associates. Pinnacle anticipates no additional Mid-America merger related expense after 2008. As a result, total merger related expense and other transaction costs associated with the Mid-America merger should approximate the original estimate of $19.1 million.
As noted previously, management has developed several scenarios under which these estimates can be achieved and believes these estimates to be reasonable based on these scenarios. However, unanticipated events or developments, including the development of any markets other than metropolitan Nashville or Knoxville, any merger or acquisition, the opportunity to hire more seasoned professionals than anticipated, increased volatility in interest rates, continued deterioration in national or local economic conditions that impact our borrowers’ ability to repay their loans or the ability to grow loans significantly in excess of the levels contemplated, may cause the actual results of Pinnacle to differ materially from these estimates.
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, real estate professionals 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 also has a well-established expertise in commercial real estate.
The firm began operations in a single downtown Nashville location in October 2000 and has since grown to $3.9 billion in assets. In 2007 Pinnacle launched an expansion into
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Knoxville, another high growth MSA. The addition of Mid-America has made Pinnacle the second-largest bank holding company headquartered in Tennessee, with 31 offices in eight Middle Tennessee counties and two in Knoxville.
Additional information concerning Pinnacle can be accessed atwww.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,” “intend,” “plan,” “believe,” “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 facts that may cause the actual results, performance or achievements of Pinnacle to differ materially from any results expressed or implied by such forward-looking statements. Such factors include, without limitation, (i) unanticipated deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses, (ii) the inability of Pinnacle to continue to grow its loan portfolio at historic rates in the Nashville-Davidson-Murfreesboro-Franklin MSA or projected rates in the Knoxville MSA, (iii) increased competition with other financial institutions, (iv) lack of sustained growth in the economy in the Nashville-Davidson-Murfreesboro-Franklin MSA and the Knoxville MSA, (v) rapid fluctuations or unanticipated changes in interest rates, (vi) the inability of Pinnacle to satisfy regulatory requirements for its expansion plans, (vii) the inability of Pinnacle to execute its expansion plans and (viii) changes in state and Federal legislation or regulations applicable to financial services providers, including banks. Additionally, risk factors exist in connection with Pinnacle’s merger with Mid-America including, among others, (1) the risk that the cost savings and any revenue synergies from the merger may not be realized or take longer than anticipated, (2) disruption from the merger with customers, suppliers or employee relationships, and (3) the risk of successful integration of the two companies’ businesses. Many of such factors are beyond Pinnacle’s ability to control or predict, and readers are cautioned not to put undue reliance on such forward-looking statements. Pinnacle 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
March 31, 2008 | December 31, 2007 | |||||||
ASSETS | ||||||||
Cash and noninterest-bearing due from banks | $ | 68,352,893 | $ | 76,941,931 | ||||
Interest-bearing deposits due from banks | 26,890,349 | 24,706,966 | ||||||
Federal funds sold and other | 21,043,348 | 20,854,966 | ||||||
Cash and cash equivalents | 116,286,590 | 122,503,863 | ||||||
Securities available-for-sale, at fair value | 494,114,484 | 495,651,939 | ||||||
Securities held-to-maturity (fair value of $11,375,050 and $26,883,473 at March 31, 2008 and December 31, 2007, respectively) | 11,262,901 | 27,033,356 | ||||||
Mortgage loans held-for-sale | 13,672,849 | 11,251,652 | ||||||
Loans | 2,866,535,567 | 2,749,640,689 | ||||||
Less allowance for loan losses | (29,871,384 | ) | (28,470,207 | ) | ||||
Loans, net | 2,836,664,183 | 2,721,170,482 | ||||||
Premises and equipment, net | 69,168,517 | 68,385,946 | ||||||
Other investments | 24,752,783 | 22,636,029 | ||||||
Accrued interest receivable | 16,630,336 | 18,383,004 | ||||||
Goodwill | 242,107,449 | 243,573,636 | ||||||
Core deposit intangible | 17,935,955 | 17,325,988 | ||||||
Other assets | 46,303,571 | 46,254,566 | ||||||
Total assets | $ | 3,888,899,618 | $ | 3,794,170,461 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Deposits: | ||||||||
Noninterest-bearing demand | $ | 429,289,392 | $ | 400,120,147 | ||||
Interest-bearing demand | 406,906,848 | 410,661,187 | ||||||
Savings and money market accounts | 757,776,325 | 742,354,465 | ||||||
Time | 1,373,052,003 | 1,372,183,317 | ||||||
Total deposits | 2,967,024,568 | 2,925,319,116 | ||||||
Securities sold under agreements to repurchase | 171,186,458 | 156,070,830 | ||||||
Federal Home Loan Bank advances and other borrowings | 168,605,882 | 141,666,133 | ||||||
Subordinated debt | 82,476,000 | 82,476,000 | ||||||
Accrued interest payable | 9,679,145 | 10,374,538 | ||||||
Other liabilities | 13,155,622 | 11,653,550 | ||||||
Total liabilities | 3,412,127,675 | 3,327,560,167 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding | — | — | ||||||
Common stock, par value $1.00; 90,000,000 shares authorized; 22,467,263 issued and outstanding at March 31, 2008 and 22,264,817 issued and outstanding at December 31, 2007 | 22,467,263 | 22,264,817 | ||||||
Additional paid-in capital | 391,942,152 | 390,977,308 | ||||||
Retained earnings | 59,230,280 | 54,150,679 | ||||||
Accumulated other comprehensive loss, net | 3,132,248 | (782,510 | ) | |||||
Stockholders’ equity | 476,771,943 | 466,610,294 | ||||||
Total liabilities and stockholders’ equity | $ | 3,888,899,618 | $ | 3,794,170,461 | ||||
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME — UNAUDITED
CONSOLIDATED STATEMENTS OF INCOME — UNAUDITED
Three Months Ended | ||||||||
March 31, | ||||||||
2008 | 2007 | |||||||
Interest income: | ||||||||
Loans, including fees | $ | 45,392,162 | $ | 28,977,224 | ||||
Securities: | ||||||||
Taxable | 4,637,277 | 3,346,120 | ||||||
Tax-exempt | 1,351,037 | 669,519 | ||||||
Federal funds sold and other | 780,917 | 746,379 | ||||||
Total interest income | 52,161,393 | 33,739,242 | ||||||
Interest expense: | ||||||||
Deposits | 21,085,633 | 13,537,263 | ||||||
Securities sold under agreements to repurchase | 832,053 | 1,712,091 | ||||||
Federal Home Loan Bank advances and other borrowings | 2,884,586 | 1,407,460 | ||||||
Total interest expense | 24,802,272 | 16,656,814 | ||||||
Net interest income | 27,359,121 | 17,082,428 | ||||||
Provision for loan losses | 1,591,123 | 787,966 | ||||||
Net interest income after provision for loan losses | 25,767,998 | 16,294,462 | ||||||
Noninterest income: | ||||||||
Service charges on deposit accounts | 2,573,737 | 1,797,149 | ||||||
Investment sales commissions | 1,268,248 | 734,560 | ||||||
Insurance sales commissions | 1,063,663 | 636,962 | ||||||
Gain on loans and loan participations sold, net | 656,088 | 363,306 | ||||||
Trust fees | 505,000 | 420,290 | ||||||
Other noninterest income | 2,300,667 | 1,073,316 | ||||||
Total noninterest income | 8,367,403 | 5,025,583 | ||||||
Noninterest expense: | ||||||||
Compensation and employee benefits | 13,866,737 | 8,266,501 | ||||||
Equipment and occupancy | 4,276,273 | 2,164,702 | ||||||
Marketing and other business development | 375,871 | 251,735 | ||||||
Postage and supplies | 648,340 | 454,916 | ||||||
Amortization of core deposit intangible | 766,033 | 515,754 | ||||||
Other noninterest expense | 2,452,641 | 1,470,083 | ||||||
Merger related expense | 3,105,763 | — | ||||||
Total noninterest expense | 25,491,658 | 13,123,691 | ||||||
Income before income taxes | 8,643,743 | 8,196,354 | ||||||
Income tax expense | 2,578,953 | 2,594,513 | ||||||
Net income | $ | 6,064,790 | $ | 5,601,841 | ||||
Per share information: | ||||||||
Basic net income per common share | $ | 0.27 | $ | 0.36 | ||||
Diluted net income per common share | $ | 0.26 | $ | 0.34 | ||||
Weighted average shares outstanding: | ||||||||
Basic | 22,088,665 | 15,433,442 | ||||||
Diluted | 23,242,022 | 16,617,484 |
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED
Three months ended | Three months ended | |||||||||||||||||||||||
(dollars in thousands) | March 31, 2008 | March 31, 2007 | ||||||||||||||||||||||
Average Balances | Interest | Rates/ Yields | Average Balances | Interest | Rates/ Yields | |||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans | $ | 2,761,745 | $ | 45,392 | 6.61 | % | $ | 1,530,771 | $ | 28,977 | 7.68 | % | ||||||||||||
Securities: | ||||||||||||||||||||||||
Taxable | 367,125 | 4,637 | 5.12 | % | 272,669 | 3,346 | 4.98 | % | ||||||||||||||||
Tax-exempt (1) | 136,690 | 1,351 | 5.24 | % | 72,961 | 670 | 4.91 | % | ||||||||||||||||
Federal funds sold and other | 58,892 | 781 | 5.56 | % | 55,897 | 746 | 5.42 | % | ||||||||||||||||
Total interest-earning assets | 3,324,452 | $ | 52,161 | 6.37 | % | 1,932,298 | $ | 33,739 | 7.13 | % | ||||||||||||||
Nonearning assets: | ||||||||||||||||||||||||
Intangible assets | 258,807 | 122,728 | ||||||||||||||||||||||
Other nonearning assets | 190,783 | 94,902 | ||||||||||||||||||||||
Total assets | $ | 3,774,042 | $ | 2,149,928 | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||||||
Interest checking | $ | 404,307 | $ | 2,129 | 2.12 | % | $ | 244,680 | $ | 1,957 | 3.24 | % | ||||||||||||
Savings and money market | 735,899 | 4,098 | 2.24 | % | 495,877 | 4,125 | 3.37 | % | ||||||||||||||||
Certificates of deposit | 1,372,899 | 14,859 | 4.35 | % | 624,092 | 7,456 | 4.84 | % | ||||||||||||||||
Total interest-bearing deposits | 2,513,105 | 21,086 | 3.37 | % | 1,364,649 | 13,538 | 4.02 | % | ||||||||||||||||
Securities sold under agreements to repurchase | 169,146 | 832 | 1.98 | % | 157,180 | 1,712 | 4.42 | % | ||||||||||||||||
Federal Home Loan Bank advances and other borrowings | 143,802 | 1,426 | 3.99 | % | 40,241 | 531 | 5.36 | % | ||||||||||||||||
Subordinated debt | 82,476 | 1,458 | 7.11 | % | 51,548 | 876 | 6.89 | % | ||||||||||||||||
Total interest-bearing liabilities | 2,908,529 | 24,802 | 3.43 | % | 1,613,618 | 16,657 | 4.19 | % | ||||||||||||||||
Noninterest-bearing deposits | 368,413 | — | — | 269,864 | — | — | ||||||||||||||||||
Total deposits and interest-bearing liabilities | 3,276,942 | $ | 24,802 | 3.04 | % | 1,883,482 | $ | 16,657 | 3.59 | % | ||||||||||||||
Other liabilities | 22,661 | 6,980 | ||||||||||||||||||||||
Stockholders’ equity | 474,439 | 259,466 | ||||||||||||||||||||||
$ | 3,774,042 | $ | 2,149,928 | |||||||||||||||||||||
Net interest income | $ | 27,359 | $ | 17,082 | ||||||||||||||||||||
Net interest spread (2) | 2.94 | % | 2.94 | % | ||||||||||||||||||||
Net interest margin (3) | 3.37 | % | 3.64 | % |
(1) | Yields computed on tax-exempt instruments on a tax equivalent basis. | |
(2) | Yields realized on interest-earning assets less the rates paid on interest-bearing liabilities. | |
(3) | 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. |
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA — UNAUDITED
SELECTED QUARTERLY FINANCIAL DATA — UNAUDITED
March | Dec | Sept | June | Mar | Dec | |||||||||||||||||||
(dollars in thousands, except per share data) | 2008 | 2007 | 2007 | 2007 | 2007 | 2006 | ||||||||||||||||||
Balance sheet data, at quarter end: | ||||||||||||||||||||||||
Total assets | $ | 3,888,900 | 3,801,234 | 2,368,079 | 2,315,327 | 2,193,132 | 2,142,187 | |||||||||||||||||
Total loans | 2,866,536 | 2,749,641 | 1,731,245 | 1,663,030 | 1,553,980 | 1,497,735 | ||||||||||||||||||
Allowance for loan losses | (29,871 | ) | (28,470 | ) | (17,978 | ) | (17,375 | ) | (16,792 | ) | (16,118 | ) | ||||||||||||
Securities | 505,377 | 522,685 | 352,222 | 339,781 | 340,255 | 346,494 | ||||||||||||||||||
Noninterest-bearing deposits | 429,289 | 400,120 | 316,542 | 294,631 | 306,885 | 300,978 | ||||||||||||||||||
Total deposits | 2,967,025 | 2,925,319 | 1,826,884 | 1,797,536 | 1,700,132 | 1,622,411 | ||||||||||||||||||
Securities sold under agreements to repurchase | 171,186 | 156,071 | 145,332 | 140,443 | 116,952 | 141,016 | ||||||||||||||||||
Advances from FHLB and other borrowings | 168,606 | 141,666 | 55,671 | 46,699 | 46,619 | 53,726 | ||||||||||||||||||
Subordinated debt | 82,476 | 82,476 | 51,548 | 51,548 | 51,548 | 51,548 | ||||||||||||||||||
Total stockholders’ equity | 476,772 | 466,415 | 274,636 | 265,194 | 262,917 | 256,017 | ||||||||||||||||||
Balance sheet data, quarterly averages: | ||||||||||||||||||||||||
Total assets | 3,774,042 | 2,791,669 | 2,378,501 | 2,229,227 | 2,149,928 | 2,096,893 | ||||||||||||||||||
Total loans | 2,761,745 | 2,063,442 | 1,697,862 | 1,598,967 | 1,530,771 | 1,442,730 | ||||||||||||||||||
Securities | 503,815 | 410,142 | 347,423 | 347,081 | 345,630 | 334,426 | ||||||||||||||||||
Total earning assets | 3,324,452 | 2,541,799 | 2,151,583 | 2,004,884 | 1,932,298 | 1,879,759 | ||||||||||||||||||
Noninterest-bearing deposits | 368,413 | 327,866 | 293,701 | 276,241 | 269,864 | 292,996 | ||||||||||||||||||
Total deposits | 2,881,518 | 2,135,973 | 1,814,135 | 1,678,036 | 1,634,513 | 1,596,765 | ||||||||||||||||||
Securities sold under agreements to repurchase | 169,146 | 201,605 | 194,774 | 172,872 | 157,180 | 154,483 | ||||||||||||||||||
Advances from FHLB and other borrowings | 143,802 | 57,970 | 29,946 | 38,516 | 40,241 | 29,817 | ||||||||||||||||||
Subordinated debt | 82,476 | 72,391 | 51,548 | 51,548 | 51,548 | 51,548 | ||||||||||||||||||
Total stockholders’ equity | 474,439 | 309,431 | 271,653 | 264,055 | 259,466 | 253,761 | ||||||||||||||||||
Statement of operations data, for the three months ended: | ||||||||||||||||||||||||
Interest income | $ | 52,161 | 43,338 | 38,347 | 35,508 | 33,739 | 33,241 | |||||||||||||||||
Interest expense | 24,802 | 21,329 | 19,387 | 17,847 | 16,657 | 15,850 | ||||||||||||||||||
Net interest income | 27,359 | 22,009 | 18,960 | 17,661 | 17,082 | 17,391 | ||||||||||||||||||
Provision for loan losses | 1,591 | 2,260 | 772 | 900 | 788 | 1,051 | ||||||||||||||||||
Net interest income after provision for loan losses | 25,768 | 19,749 | 18,188 | 16,761 | 16,294 | 16,340 | ||||||||||||||||||
Noninterest income | 8,367 | 6,612 | 5,332 | 5,552 | 5,026 | 4,934 | ||||||||||||||||||
Noninterest expense | 25,492 | 17,762 | 15,110 | 14,484 | 13,124 | 13,135 | ||||||||||||||||||
Income before taxes | 8,644 | 8,599 | 8,410 | 7,828 | 8,196 | 8,139 | ||||||||||||||||||
Income tax expense | 2,579 | 2,357 | 2,638 | 2,402 | 2,594 | 2,493 | ||||||||||||||||||
Net income | $ | 6,065 | 6,242 | 5,772 | 5,426 | 5,602 | 5,646 | |||||||||||||||||
Profitability and other ratios: | ||||||||||||||||||||||||
Return on avg. assets (1) | 0.65 | % | 0.89 | % | 0.96 | % | 0.98 | % | 1.06 | % | 1.07 | % | ||||||||||||
Return on avg. equity (1) | 5.14 | % | 8.00 | % | 8.43 | % | 8.24 | % | 8.76 | % | 8.83 | % | ||||||||||||
Net interest margin (2) | 3.37 | % | 3.49 | % | 3.54 | % | 3.58 | % | 3.64 | % | 3.74 | % | ||||||||||||
Noninterest income to total revenue (3) | 23.42 | % | 23.10 | % | 21.95 | % | 23.92 | % | 22.73 | % | 22.10 | % | ||||||||||||
Noninterest income to avg. assets (1) | 0.89 | % | 0.94 | % | 0.89 | % | 1.00 | % | 0.95 | % | 0.93 | % | ||||||||||||
Noninterest exp. to avg. assets (1) | 2.71 | % | 2.52 | % | 2.52 | % | 2.61 | % | 2.48 | % | 2.49 | % | ||||||||||||
Efficiency ratio (4) | 71.35 | % | 62.06 | % | 62.20 | % | 62.40 | % | 59.36 | % | 58.84 | % | ||||||||||||
Avg. loans to average deposits | 95.84 | % | 96.60 | % | 93.59 | % | 95.29 | % | 93.65 | % | 90.40 | % | ||||||||||||
Securities to total assets | 13.00 | % | 13.75 | % | 14.87 | % | 14.68 | % | 15.51 | % | 16.17 | % | ||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 114.30 | % | 118.77 | % | 119.75 | % | 119.75 | % | 119.75 | % | 122.00 | % | ||||||||||||
Brokered time deposits to total deposits | 7.78 | % | 9.48 | % | 8.04 | % | 8.17 | % | 5.83 | % | 3.71 | % |
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA — UNAUDITED
SELECTED QUARTERLY FINANCIAL DATA — UNAUDITED
March | Dec | Sept | June | Mar | Dec | |||||||||||||||||||
(dollars in thousands) | 2008 | 2007 | 2007 | 2007 | 2007 | 2006 | ||||||||||||||||||
Asset quality information and ratios: | ||||||||||||||||||||||||
Nonperforming assets: | ||||||||||||||||||||||||
Nonaccrual loans | $ | 17,124 | 19,677 | 2,364 | 2,392 | 4,705 | 7,070 | |||||||||||||||||
Other real estate | $ | 3,567 | 1,673 | 878 | 687 | 927 | 995 | |||||||||||||||||
Past due loans over 90 days and still accruing interest | $ | 2,002 | 1,613 | 633 | 606 | 98 | 737 | |||||||||||||||||
Net loan charge-offs (6) | $ | 190 | 462 | 169 | 317 | 114 | 105 | |||||||||||||||||
Allowance for loan losses to total loans | 1.04 | % | 1.04 | % | 1.04 | % | 1.04 | % | 1.08 | % | 1.08 | % | ||||||||||||
Allowance for loan losses to nonaccrual loans | 174.4 | % | 144.7 | % | 760.5 | % | 726.4 | % | 356.9 | % | 228.0 | % | ||||||||||||
As a percentage of total loans and ORE: | ||||||||||||||||||||||||
Past due accruing loans over 30 days | 0.77 | % | 0.45 | % | 0.38 | % | 0.31 | % | 0.33 | % | 0.74 | % | ||||||||||||
Nonperforming assets | 0.72 | % | 0.78 | % | 0.19 | % | 0.19 | % | 0.36 | % | 0.54 | % | ||||||||||||
Potential problem loans (5) | 0.64 | % | 0.56 | % | 0.40 | % | 0.16 | % | 0.21 | % | 0.24 | % | ||||||||||||
Annualized net loan charge-offs year-to-date to avg. loans (6) | 0.03 | % | 0.07 | % | 0.05 | % | 0.06 | % | 0.03 | % | 0.05 | % | ||||||||||||
Avg. commercial loan internal risk ratings (5) | 4.1 | 4.1 | 4.1 | 4.1 | 4.1 | 4.1 | ||||||||||||||||||
Avg. loan account balances (7) | $ | 170 | 160 | 169 | 164 | 156 | 140 | |||||||||||||||||
Interest rates and yields: | ||||||||||||||||||||||||
Loans | 6.61 | % | 7.23 | % | 7.65 | % | 7.66 | % | 7.68 | % | 7.65 | % | ||||||||||||
Securities | 5.11 | % | 4.92 | % | 4.99 | % | 4.98 | % | 4.96 | % | 4.97 | % | ||||||||||||
Total earning assets | 6.37 | % | 6.82 | % | 7.12 | % | 7.15 | % | 7.13 | % | 7.06 | % | ||||||||||||
Total deposits, including non-interest bearing | 2.94 | % | 3.28 | % | 3.51 | % | 3.46 | % | 3.36 | % | 3.18 | % | ||||||||||||
Securities sold under agreements to repurchase | 1.98 | % | 3.36 | % | 4.20 | % | 4.39 | % | 4.42 | % | 4.52 | % | ||||||||||||
FHLB advances and other borrowings | 3.99 | % | 4.61 | % | 5.10 | % | 5.19 | % | 5.36 | % | 4.94 | % | ||||||||||||
Subordinated debt | 7.11 | % | 7.20 | % | 6.90 | % | 6.84 | % | 6.89 | % | 6.84 | % | ||||||||||||
Total deposits and interest-bearing liabilities | 3.04 | % | 3.43 | % | 3.68 | % | 3.67 | % | 3.59 | % | 3.43 | % | ||||||||||||
Capital ratios (8): | ||||||||||||||||||||||||
Stockholders’ equity to total assets | 12.3 | % | 12.3 | % | 11.6 | % | 11.5 | % | 12.0 | % | 11.9 | % | ||||||||||||
Leverage | 8.5 | % | 11.6 | % | 9.2 | % | 9.5 | % | 9.5 | % | 9.5 | % | ||||||||||||
Tier one risk-based | 9.5 | % | 9.5 | % | 10.4 | % | 10.4 | % | 10.9 | % | 10.9 | % | ||||||||||||
Total risk-based | 10.4 | % | 10.4 | % | 11.3 | % | 11.3 | % | 11.8 | % | 11.8 | % |
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA — UNAUDITED
SELECTED QUARTERLY FINANCIAL DATA — UNAUDITED
March | Dec | Sept | June | Mar | Dec | |||||||||||||||||||
(dollars in thousands, except per share data) | 2008 | 2007 | 2007 | 2007 | 2007 | 2006 | ||||||||||||||||||
Per share data: | ||||||||||||||||||||||||
Earnings — basic | $ | 0.27 | 0.35 | 0.37 | 0.35 | 0.36 | 0.37 | |||||||||||||||||
Earnings — diluted | $ | 0.26 | 0.33 | 0.35 | 0.33 | 0.34 | 0.34 | |||||||||||||||||
Book value at quarter end (9) | $ | 21.22 | 20.95 | 17.66 | 17.06 | 16.93 | 16.57 | |||||||||||||||||
Weighted avg. shares — basic | 22,088,665 | 17,753,661 | 15,503,284 | 15,494,522 | 15,433,442 | 15,393,735 | ||||||||||||||||||
Weighted avg. shares — diluted | 23,242,022 | 19,110,851 | 16,609,328 | 16,664,213 | 16,617,484 | 16,655,349 | ||||||||||||||||||
Common shares outstanding | 22,467,263 | 22,264,817 | 15,553,037 | 15,545,581 | 15,530,975 | 15,446,074 | ||||||||||||||||||
Investor information: | ||||||||||||||||||||||||
Closing sales price | $ | 25.60 | 25.42 | 28.82 | 29.36 | 30.51 | 33.18 | |||||||||||||||||
High sales price during quarter | $ | 26.75 | 30.93 | 31.31 | 31.48 | 33.85 | 36.17 | |||||||||||||||||
Low sales price during quarter | $ | 20.82 | 24.85 | 21.62 | 28.27 | 29.40 | 31.23 | |||||||||||||||||
Other information: | ||||||||||||||||||||||||
Gains on sale of loans and loan participations sold: | ||||||||||||||||||||||||
Mortgage loan sales: | ||||||||||||||||||||||||
Gross loans sold | $ | 59,757 | 40,273 | 42,895 | 52,197 | 31,044 | 36,551 | |||||||||||||||||
Gross fees (10) | $ | 1,114 | 750 | 659 | 846 | 544 | 653 | |||||||||||||||||
Gross fees as a percentage of mortgage loans originated | 1.86 | % | 1.86 | % | 1.54 | % | 1.62 | % | 1.75 | % | 1.79 | % | ||||||||||||
Commercial loan participations sold | $ | 4 | 8 | 19 | 167 | 45 | 224 | |||||||||||||||||
Gains on sales of investment securities, net | $ | 1 | 16 | — | — | — | — | |||||||||||||||||
Brokerage account assets, at quarter-end (11) | $ | 859,000 | 878,000 | 590,000 | 643,000 | 617,000 | 597,000 | |||||||||||||||||
Trust account assets, at quarter-end | $ | 493,000 | 464,000 | 512,000 | 475,000 | 400,000 | 380,000 | |||||||||||||||||
Floating rate loans as a percentage of loans (12) | 41.4 | % | 41.8 | % | 44.6 | % | 45.5 | % | 46.3 | % | 46.3 | % | ||||||||||||
Balance of commercial loan participations sold to other banks and serviced by Pinnacle, at quarter end | $ | 113,701 | 110,352 | 125,370 | 115,913 | 114,143 | 95,398 | |||||||||||||||||
Core deposits to total funding (13) | 57.6 | % | 58.2 | % | 61.4 | % | 62.3 | % | 63.7 | % | 63.3 | % | ||||||||||||
Risk-weighted assets | $ | 3,181,612 | 3,103,293 | 1,998,401 | 1,921,648 | 1,780,107 | 1,721,633 | |||||||||||||||||
Total assets per full-time equivalent employee | $ | 5,669 | 5,415 | 5,257 | 5,250 | 5,228 | 5,302 | |||||||||||||||||
Annualized revenues per full-time equivalent employee | $ | 209.5 | 161.8 | 213.9 | 211.1 | 210.8 | 219.2 | |||||||||||||||||
Number of employees (full-time equivalent) | 686.0 | 702.0 | 450.5 | 441.0 | 419.5 | 404.0 | ||||||||||||||||||
Associate retention rate (14) | 92.0 | % | 89.7 | % | 89.4 | % | 88.1 | % | 85.3 | % | 85.1 | % | ||||||||||||
Selected economic information (15): | ||||||||||||||||||||||||
Nashville MSA nonfarm employment | 759.2 | 795.2 | 763.6 | 759.5 | 757.5 | 768.8 | ||||||||||||||||||
Knoxville MSA nonfarm employment | 335.3 | 358.7 | 337.2 | 335.9 | 335.2 | 337.3 | ||||||||||||||||||
Nashville MSA unemployment | 4.8 | % | 4.2 | % | 3.5 | % | 3.7 | % | 4.0 | % | 3.5 | % | ||||||||||||
Knoxville MSA unemployment | 4.7 | % | 3.9 | % | 3.2 | % | 3.4 | % | 3.8 | % | 3.3 | % | ||||||||||||
Nashville residential median home price | $ | 178.4 | 187.9 | 182.3 | 196.0 | 173.4 | 184.6 | |||||||||||||||||
Nashville inventory of residential homes for sale | 15.1 | 13.4 | 15.4 | 14.6 | 12.9 | 10.8 |
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY AND YEAR-TO-DATE FINANCIAL DATA — UNAUDITED
SELECTED QUARTERLY AND YEAR-TO-DATE FINANCIAL DATA — UNAUDITED
As of March 31, | As of December 31, | |||||||
(dollars in thousands, except per share data) | 2008 | 2007 | ||||||
Reconciliation of certain financial measures: | ||||||||
Tangible assets: | ||||||||
Total assets | $ | 3,888,900 | $ | 3,801,234 | ||||
Less: Goodwill | (242,107 | ) | (243,688 | ) | ||||
Core deposit intangible | (17,936 | ) | (17,326 | ) | ||||
Net tangible assets | $ | 3,628,856 | $ | 3,540,220 | ||||
Tangible equity: | ||||||||
Total stockholders’ equity | $ | 476,772 | $ | 466,415 | ||||
Less: Goodwill | (242,107 | ) | (243,688 | ) | ||||
Core deposit intangible | (17,936 | ) | (17,326 | ) | ||||
Net tangible equity | $ | 216,729 | $ | 205,401 | ||||
Tangible equity divided by tangible assets | 5.97 | % | 5.80 | % | ||||
Tangible equity per common share | $ | 9.65 | $ | 9.23 | ||||
For the three months ended March 31, | ||||||||
(dollars in thousands) | 2008 | 2007 | ||||||
Average tangible assets: | ||||||||
Total average assets | $ | 3,774,042 | $ | 2,149,928 | ||||
Less: Average intangible assets | (258,807 | ) | (122,728 | ) | ||||
Net average tangible assets | $ | 3,515,235 | $ | 2,027,200 | ||||
Average tangible equity: | ||||||||
Total average stockholders’ equity | $ | 474,439 | $ | 259,466 | ||||
Less: Average intangible assets | (258,807 | ) | (122,728 | ) | ||||
Net average tangible stockholders’ equity | $ | 215,632 | $ | 136,738 | ||||
Net income | $ | 6,065 | $ | 5,602 | ||||
Return on average tangible assets (annualized) | 0.69 | % | 1.12 | % | ||||
Return on average tangible stockholders’ equity (annualized) | 11.31 | % | 16.95 | % | ||||
Net income | $ | 6,065 | $ | 5,602 | ||||
Impact of merger related expense, net of tax | 1,887 | — | ||||||
Net income before impact of merger related expense | $ | 7,952 | $ | 5,602 | ||||
Fully-diluted earnings per share before impact of merger related expense | $ | 0.34 | $ | 0.34 | ||||
Net income | $ | 6,065 | $ | 5,602 | ||||
Impact of Knoxville expansion net loss, net of tax | (423 | ) | — | |||||
Net income before impact of Knoxville expansion | $ | 6,488 | $ | 5,602 | ||||
Return on average assets before impact of Knoxville expansion and merger expenses | 0.89 | % | 1.06 | % | ||||
Return on average equity before impact of Knoxville expansion and merger expenses | 7.10 | % | 8.76 | % | ||||
Return on average tangible equity before impact of Knoxville expansion and merger expenses | 15.62 | % | 8.76 | % | ||||
Total expenses | $ | 25,492 | $ | 13,124 | ||||
Less: merger expense | (3,106 | ) | — | |||||
Total expenses before impact of merger related expense | $ | 22,386 | $ | 13,124 | ||||
Efficiency ratio before impact of merger related expense | 62.66 | % | 59.36 | % | ||||
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. | 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 are considered potential problem loans. Potential problem loans do not include nonperforming loans. Generally, consumer loans are not subjected to internal risk ratings. | |
6. | 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. | |
7. | Computed by dividing the balance of all loans by the number of loan accounts as of the end of each quarter. | |
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 by common shares outstanding | |
10. | Amounts are included in the statement of income 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. |