![(LOGO)](https://capedge.com/proxy/8-K/0000950144-08-005513/g14239g1423910.gif)
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 $0.34
PER FULLY DILUTED SHARE FOR SECOND QUARTER OF 2008
Fully diluted earnings per share of $0.37, excluding merger related expense
STRONG ASSET QUALITY AND EARNINGS OF $0.34
PER FULLY DILUTED SHARE FOR SECOND QUARTER OF 2008
Fully diluted earnings per share of $0.37, excluding merger related expense
NASHVILLE,Tenn., July 15, 2008 — Pinnacle Financial Partners Inc. (Nasdaq/NGS: PNFP) today reported strong earnings and record loan growth for the quarter ended June 30, 2008. Fully diluted earnings per share were $0.34 for the quarter ended June 30, 2008, compared to $0.33 per fully diluted share for the quarter ended June 30, 2007. Excluding merger related expense associated with its Nov. 30, 2007 acquisition of Mid-America Bancshares Inc., fully diluted earnings per share were $0.37 for the quarter ended June 30, 2008, compared to $0.33 for the same period last year, an increase of 12.1 percent.
Fully diluted earnings per share were $0.60 for the six months ended June 30, 2008, compared to $0.66 per fully diluted share for the six months ended June 30, 2007. Excluding merger related expense associated with the Mid-America acquisition, fully diluted earnings per share were $0.71 for the six months ended June 30, 2008, compared to $0.66 for the same period last year, an increase of 7.6 percent.
Pinnacle also reported a record $166 million in organic loan growth in the second quarter of 2008, a 52 percent increase over the $109 million reported in the same quarter of 2007. The growth in loans contributed to a higher provision for loan loss expense for the second quarter of 2008 when compared to the same quarter last year.
SECOND QUARTER 2008 HIGHLIGHTS:
• | Strong Earnings |
○ | Net income for the second quarter of 2008 was $7.96 million, up 46.7 percent from the prior year’s second quarter net income of $5.43 million. |
Excluding after-tax merger related expense of $820,000, net income was $8.78 million up 61.8 percent over the same period last year.
○ | Revenue (the sum of net interest income and noninterest income) for the quarter ended June 30, 2008, amounted to $36.74 million, compared to $23.21 million for the same quarter of last year, an increase of 58.3 percent. |
• | Continued balance sheet growth |
○ | Loans at June 30, 2008, were $3.03 billion, up $1.37 billion from $1.66 billion at June 30, 2007. This 12-month increase in loans includes organic growth of $505 million, or an annualized growth rate of 30.4 percent, and $864 million in loans acquired in conjunction with the Mid-America merger. | ||
○ | Total deposits at June 30, 2008, were $3.15 billion, up $1.35 billion from $1.80 billion at June 30, 2007. This 12-month increase includes organic growth of $398 million, or an annualized growth rate of 22.1 percent, and $957 million in deposits acquired in conjunction with the Mid-America merger. |
• | Superior credit quality |
○ | Annualized net charge-offs as a percentage of average loan balances were 0.12 percent and 0.07 percent for the three and six months ended June 30, 2008, respectively, compared to 0.08 percent and 0.06 percent for the three and six months ended June 30, 2007, respectively. | ||
○ | Nonperforming assets were 0.73 percent of total loans and other real estate at June 30, 2008, compared to 0.72 percent at Mar. 31, 2008, 0.78 percent at Dec. 31, 2007 and 0.19 percent at June 30, 2007. Approximately $9.60 million of the $22.25 million of nonperforming assets at June 30, 2008 were attributable to the Mid-America acquisition. | ||
○ | Past due loans over 30 days, excluding nonperforming loans, were 0.34 percent of total loans and other real estate at June 30, 2008, 0.77 percent at Mar. 31, 2008, compared to 0.45 percent at Dec. 31, 2007 and 0.31 percent at June 30, 2007. |
“Pinnacle’s solid performance in the second quarter, in the face of a difficult operating environment in which many banks are struggling, is a tribute to the skill and long-term
Page 2
experience of our associates. Our approach of hiring only highly experienced bankers pays off in more difficult economic environments because it enables us to continue moving market share from struggling large regional banks and to grow assets at a rapid rate while maintaining excellent asset quality. During the second quarter, we produced annualized linked-quarter loan growth of 23 percent, year-over-year earnings per share growth of 12.1 percent adjusted for merger related expenses, and maintained an extraordinarily sound loan portfolio with just 0.07 percent in year-to-date annualized net charge-offs,” said M. Terry Turner, Pinnacle’s president and CEO. “We also maintained low and stable non-performing and past due loan trends.”
FINANCIAL PERFORMANCE AND BALANCE SHEET GROWTH
• | Return on average assets for second quarter 2008 was 0.82 percent compared to 0.98 percent for the second quarter of 2007. Excluding the impact of the Mid-America merger related expense, return on average assets for the second quarter of 2008 would have approximated 0.90 percent. | ||
• | Return on average stockholders’ equity for the quarter ended June 30, 2008, was 6.71 percent compared to 8.24 percent for the second quarter of 2007. Excluding the impact of the Mid-America merger related expense, return on average stockholders’ equity for the second quarter of 2008 would have approximated 7.40 percent. | ||
• | Return on average tangible stockholders’ equity (average stockholders’ equity less goodwill and core deposit intangibles) for the quarter ended June 30, 2008, was 14.67 percent compared to 15.65 percent for the second quarter of 2007. Excluding the impact of the Mid-America merger related expense, return on average tangible stockholders’ equity for the second quarter of 2008 would have approximated 16.18 percent. |
Total assets grew to $4.11 billion as of June 30, 2008, up $1.79 billion from the $2.32 billion reported at the same time last year. The 12-month increase in assets includes organic growth of $542 million, or 23 percent, and $1.25 billion in assets acquired in conjunction with the Mid-America merger in November of last year.
Page 3
CREDIT QUALITY
• | Provision for loan losses was $2.79 million for the second quarter of 2008, compared to $900,000 in the second quarter of 2007. |
○ | During the second quarter of 2008, the firm recorded net charge-offs of $870,000, compared to net charge-offs of $317,000 during the same period in 2007. Annualized net charge-offs to total average loans were 0.07 percent for the six months ended June 30, 2008. The annualized provision for loan losses expressed as a percentage of average loans was 0.38 percent for the second quarter of 2008 compared to 0.23 percent for the same quarter last year. | ||
○ | The increase in provision for loan loss expense between the second quarter of 2008 and the second quarter of 2007 was primarily due to the significant increase in loan balances recorded during the second quarter of 2008 over the amount recorded in the second quarter of 2007. |
• | Allowance for loan losses represented 1.05 percent of total loans at June 30, 2008, compared to 1.04 percent a year ago. |
○ | The ratio of the allowance for loan losses to nonperforming loans was 243 percent at June 30, 2008, compared to 145 percent at Dec. 31, 2007 and 726 percent at June 30, 2007. |
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 0.73 percent at June 30, 2008. The following is a summary of the activity in various nonperforming asset categories for the quarter ended June 30, 2008:
Balances | Payments and | Balances | ||||||||||||||
(in thousands) | March 31, 2008 | Reductions | Increases | June 30, 2008 | ||||||||||||
Nonperforming loans: | ||||||||||||||||
Residential construction & development | $ | 8,815 | $ | 10,623 | $ | 6,984 | $ | 5,176 | ||||||||
Other | 8,309 | 2,680 | 2,262 | 7,891 | ||||||||||||
Totals | 17,124 | 13,303 | 9,246 | 13,067 | ||||||||||||
Other real estate: | ||||||||||||||||
Residential construction & development | 2,318 | 4,682 | 10,263 | 7,899 | ||||||||||||
Other | 1,249 | 727 | 2,153 | 1,282 | ||||||||||||
Totals | 3,567 | 5,409 | 11,023 | 9,181 | ||||||||||||
Total nonperforming assets | $ | 20,691 | $ | 18,712 | $ | 20,269 | $ | 22,248 | ||||||||
Page 4
REVENUE
• | Net interest income for second quarter 2008 was $27.68 million, compared to $17.66 million for the same quarter last year, an increase of 56.7 percent. |
○ | Net interest margin for the second quarter of 2008 was 3.24 percent, compared to a net interest margin of 3.58 percent for the same period last year and 3.37 for the first quarter of 2008. |
• | Noninterest income for second quarter 2008 was $9.06 million, a 63.2 percent increase over the $5.55 million recorded during the same quarter in 2007. |
“We have anticipated compression in our net interest margins for the last several quarters,” said Harold Carpenter, chief financial officer of Pinnacle Financial Partners. “This compression continued during the second quarter of 2008. At this time, we are optimistic based on our internal modeling, that further compression in our margins should be modest for the next few quarters. Additionally, we experienced another significant loan growth quarter. Our loan pipelines remain robust, which should provide increased core revenue growth in future periods.”
The 63.2 percent increase in noninterest income between the second quarter of 2007 and the second quarter of 2008 was due several factors, including a $1.0 million gain from the disposition of two branch locations as a result of the Mid-America acquisition; increased fee revenue as a result of 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 second quarter of 2008, Pinnacle’s mortgage origination unit sold $79.69 million of mortgage loans compared to $52.20 million in 2007, an increase of 52.7 percent.
“As in so many other areas, Pinnacle is bucking national trends with its record investment sales commissions and record mortgage originations during the second quarter of 2008,” Turner said.
Noninterest income during the second quarter of 2008 represented approximately 24.66 percent of total revenues, compared to 23.92 percent for the same quarter in 2007.
Page 5
NONINTEREST EXPENSE
• | Noninterest expense for the quarter ended June 30, 2008, was $23.07 million ($21.73 million, excluding merger expenses) compared to $25.49 million ($22.39 million, excluding merger expenses) in the first quarter of 2008 and $14.48 million in the second quarter of 2007. | ||
• | Compensation expense was $12.50 million during the second quarter of 2008, compared to $13.87 million during the first quarter of 2008 and $8.79 million during the second quarter of 2007. Total full-time equivalent employees were 704.5 at June 30, 2008 compared to 702.0 at Dec. 31, 2007 and 441.0 at June 30, 2007. Linked quarter compensation expense was lower due to lower average headcount during the second quarter of 2008 compared to the first quarter of 2008, reduced incentive expense and increased loan origination activity that contributed to increased deferred lending charges. | ||
• | Merger related expense was $1.35 million during the quarter ended June 30, 2008 and was composed primarily of $1.03 million in retention bonus accruals for former Mid-America associates. | ||
• | The efficiency ratio (noninterest expense divided by net interest income and noninterest income) was 62.8 percent during the second quarter of 2008 compared to 71.4 percent for the first quarter of 2008 and 62.4 percent in the second quarter of 2007. Excluding merger related expenses, the efficiency ratio was 59.1 percent in the second quarter of 2008. |
Carpenter noted that the firm will continue to make investments in future growth and, consequently, anticipates increased noninterest expense (excluding merger related expense) for the last half of 2008 of approximately 2 to 3 percent over the amount the firm has experienced during the first six months of 2008 primarily attributable to increasing headcount and other variable costs associated with the growth of the firm.
INVESTMENTS IN FUTURE GROWTH
• | Pinnacle has hired 27 highly experienced associates for its denovo expansion to Knoxville that was announced on April 9, 2007. Loans outstanding in Knoxville at June 30, 2008 were $207 million, which is $45 million ahead of our original target |
Page 6
disclosed at the time the Knoxville expansion was announced. Pinnacle has negotiated a site for construction of another full service location in the Fountain City area of Knoxville, currently scheduled to open during the first quarter of 2009.
• | Pinnacle also has initiated construction of a new Dickson County location in the Nashville MSA to replace the current temporary location. The new facility is scheduled to open in the fourth quarter of 2008. | ||
• | On July 2, 2008, Pinnacle announced the acquisition of Murfreesboro, Tenn. based Beach and Gentry Insurance LLC. Beach & Gentry has 18 associates and 4,000 clients. Miller & Loughry, Pinnacle’s wholly-owned insurance agency, also located in Murfreesboro, has 22 associates and 6,300 clients. The combined company, Miller Loughry Beach, is the largest independent insurance agency headquartered in Rutherford County. | ||
• | Pinnacle’s total associate base at June 30, 2008, was 704.5 full-time equivalents (FTEs) compared to 441.0 at June 30, 2007. Approximately 220 FTEs were added to Pinnacle’s associate base in conjunction with the Mid-America merger. Pinnacle also anticipates hiring 29 associates during the remainder of 2008. |
NASHVILLE HOUSING MARKET UPDATE
• | Market Graphics Research Group reports both the developed lot inventory and inventory of unoccupied new homes in the Nashville MSA appear to have peaked in February of 2008. The developed lot inventory increased from 24,809 lots in June 2006 to 37,760 lots in February 2008 and down to 37,056 lots in June 2008. Unoccupied new homes increased from 2,228 homes in June 2006 to 4,353 homes in February 2008 and were down to 3,990 homes in June 2008. | ||
• | The Greater Nashville Realtors Association reported residential closings down 28 percent in June 2008 in comparison to June 2007, essentially the same year over year decrease since September of 2007. At June 30, 2008, the inventory of residential homes was less than an eight month supply based on June 2008 closings, while condominium inventory was approximately a five month supply, again based on June 2008 closings. The Greater Nashville Realtors Association also reported that the median residential home sales price for the three months |
Page 7
ended June 30, 2008 averaged $183,600, which was up 2.9 percent from the three months ended March 31, 2008.
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 third quarter 2008 diluted earnings per share will approximate $0.35 to $0.40 including merger related expense or $0.38 to $0.43, excluding merger related expense. Pinnacle estimates its 2008 diluted earnings per share will approximate $1.36 to $1.44 including merger related expense or $1.54 to $1.62, excluding merger related expense.
Merger related expense should approximate $2.0 million to $2.5 million for the remainder of 2008 with substantially the entire amount being attributable to retention awards for former Mid-America associates. Pinnacle anticipates no additional Mid-America merger related expense after 2008.
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, but not limited to 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, deterioration in national or local economic conditions in excess of expectation, materially adverse developments in our borrowers’ ability to repay their loans, any activity in the capital markets which would cause Pinnacle to conclude that there was impairment of any asset including intangible assets, 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.
Page 8
The firm began operations in a single downtown Nashville location in October 2000 and has since grown to $4.1 billion in assets. In 2007, Pinnacle launched an expansion into 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 and 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.
Page 9
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS — UNAUDITED
CONSOLIDATED BALANCE SHEETS — UNAUDITED
June 30, 2008 | December 31, 2007 | |||||||
ASSETS | ||||||||
Cash and noninterest-bearing due from banks | $ | 77,109,394 | $ | 76,941,931 | ||||
Interest-bearing due from banks | 1,758,085 | 24,706,966 | ||||||
Federal funds sold and other | 66,342,642 | 20,854,966 | ||||||
Cash and cash equivalents | 145,210,121 | 122,503,863 | ||||||
Securities available-for-sale, at fair value | 509,972,917 | 495,651,939 | ||||||
Securities held-to-maturity (fair value of $11,161,324 and $26,883,473 at June 30, 2008 and December 31, 2007, respectively) | 11,241,469 | 27,033,356 | ||||||
Mortgage loans held-for-sale | 16,507,630 | 11,251,652 | ||||||
Loans | 3,032,272,183 | 2,749,640,689 | ||||||
Less allowance for loan losses | (31,788,776 | ) | (28,470,207 | ) | ||||
Loans, net | 3,000,483,407 | 2,721,170,482 | ||||||
Premises and equipment, net | 67,096,558 | 68,385,946 | ||||||
Other investments | 25,208,539 | 22,636,029 | ||||||
Accrued interest receivable | 16,185,503 | 18,383,004 | ||||||
Goodwill | 241,988,969 | 243,573,636 | ||||||
Core deposit intangible, net | 17,177,922 | 17,325,988 | ||||||
Other assets | 54,981,917 | 46,254,566 | ||||||
Total assets | $ | 4,106,054,952 | $ | 3,794,170,461 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 438,458,200 | $ | 400,120,147 | ||||
Interest-bearing | 390,956,511 | 410,661,187 | ||||||
Savings and money market accounts | 719,961,996 | 742,354,465 | ||||||
Time | 1,603,136,919 | 1,372,183,317 | ||||||
Total deposits | 3,152,513,626 | 2,925,319,116 | ||||||
Securities sold under agreements to repurchase | 183,188,428 | 156,070,830 | ||||||
Federal Home Loan Bank advances and other borrowings | 187,314,802 | 141,666,133 | ||||||
Subordinated debt | 82,476,000 | 82,476,000 | ||||||
Accrued interest payable | 8,328,868 | 10,374,538 | ||||||
Other liabilities | 10,523,794 | 11,653,550 | ||||||
Total liabilities | 3,624,345,518 | 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; 22,587,564 issued and outstanding at June 30, 2008 and 22,264,817 issued and outstanding at December 31, 2007 | 22,587,564 | 22,264,817 | ||||||
Additional paid-in capital | 393,742,295 | 390,977,308 | ||||||
Retained earnings | 67,577,903 | 54,150,679 | ||||||
Accumulated other comprehensive loss, net of taxes | (2,198,328 | ) | (782,510 | ) | ||||
Stockholders’ equity | 481,709,434 | 466,610,294 | ||||||
Total liabilities and stockholders’ equity | $ | 4,106,054,952 | $ | 3,794,170,461 | ||||
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME — UNAUDITED
CONSOLIDATED STATEMENTS OF INCOME — UNAUDITED
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Interest income: | ||||||||||||||||
Loans, including fees | $ | 42,227,538 | $ | 30,555,889 | $ | 87,619,700 | $ | 59,533,113 | ||||||||
Securities: | ||||||||||||||||
Taxable | 4,792,481 | 3,394,359 | 9,429,758 | 6,740,479 | ||||||||||||
Tax-exempt | 1,339,732 | 693,417 | 2,690,769 | 1,362,936 | ||||||||||||
Federal funds sold and other | 414,118 | 864,198 | 1,195,035 | 1,610,577 | ||||||||||||
Total interest income | 48,773,869 | 35,507,863 | 100,935,262 | 69,247,105 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 17,719,109 | 14,456,629 | 38,804,742 | 27,993,892 | ||||||||||||
Securities sold under agreements to repurchase | 567,090 | 1,890,743 | 1,399,143 | 3,602,834 | ||||||||||||
Federal Home Loan Bank advances and other borrowings | 2,805,541 | 1,499,436 | 5,690,127 | 2,906,896 | ||||||||||||
Total interest expense | 21,091,740 | 17,846,808 | 45,894,012 | 34,503,622 | ||||||||||||
Net interest income | 27,682,129 | 17,661,055 | 55,041,250 | 34,743,483 | ||||||||||||
Provision for loan losses | 2,787,470 | 899,998 | 4,378,593 | 1,687,964 | ||||||||||||
Net interest income after provision for loan losses | 24,894,659 | 16,761,057 | 50,662,657 | 33,055,519 | ||||||||||||
Noninterest income: | ||||||||||||||||
Service charges on deposit accounts | 2,684,486 | 1,920,085 | 5,258,223 | 3,717,234 | ||||||||||||
Investment services | 1,220,247 | 850,207 | 2,488,495 | 1,584,767 | ||||||||||||
Insurance sales commissions | 589,488 | 628,953 | 1,653,151 | 1,265,915 | ||||||||||||
Gain on loans and loan participations sold, net | 879,824 | 638,895 | 1,535,912 | 1,002,201 | ||||||||||||
Net gain on sale of premises | 1,010,881 | — | 1,010,881 | 56,078 | ||||||||||||
Trust fees | 531,458 | 425,205 | 1,036,458 | 845,495 | ||||||||||||
Other noninterest income | 2,142,101 | 1,088,172 | 4,442,768 | 2,105,410 | ||||||||||||
Total noninterest income | 9,058,485 | 5,551,517 | 17,425,888 | 10,577,100 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 12,502,540 | 8,794,853 | 26,369,277 | 17,061,354 | ||||||||||||
Equipment and occupancy | 3,226,932 | 2,412,528 | 7,503,205 | 4,577,230 | ||||||||||||
Marketing and other business development | 478,507 | 430,291 | 854,378 | 682,026 | ||||||||||||
Postage and supplies | 843,287 | 524,197 | 1,491,627 | 979,114 | ||||||||||||
Amortization of core deposit intangible | 758,033 | 515,755 | 1,524,066 | 1,031,508 | ||||||||||||
Other noninterest expense | 3,916,573 | 1,806,680 | 6,369,214 | 3,276,764 | ||||||||||||
Merger related expense | 1,349,276 | — | 4,455,039 | — | ||||||||||||
Total noninterest expense | 23,075,148 | 14,484,304 | 48,566,806 | 27,607,996 | ||||||||||||
Income before income taxes | 10,877,996 | 7,828,270 | 19,521,739 | 16,024,623 | ||||||||||||
Income tax expense | 2,916,863 | 2,402,405 | 5,495,816 | 4,996,918 | ||||||||||||
Net income | $ | 7,961,133 | $ | 5,425,865 | $ | 14,025,923 | $ | 11,027,705 | ||||||||
Per share information: | ||||||||||||||||
Basic net income per common share | $ | 0.36 | $ | 0.35 | $ | 0.63 | $ | 0.71 | ||||||||
Diluted net income per common share | $ | 0.34 | $ | 0.33 | $ | 0.60 | $ | 0.66 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 22,356,667 | 15,494,522 | 22,248,292 | 15,464,151 | ||||||||||||
Diluted | 23,629,234 | 16,664,213 | 23,519,844 | 16,640,977 |
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) | June 30, 2008 | June 30, 2007 | ||||||||||||||||||||||
Average | Rates/ | Average | Rates/ | |||||||||||||||||||||
Balances | Interest | Yields | Balances | Interest | Yields | |||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans | $ | 2,941,973 | $ | 42,228 | 5.77 | % | $ | 1,598,967 | $ | 30,556 | 7.66 | % | ||||||||||||
Securities: | ||||||||||||||||||||||||
Taxable | 380,733 | 4,792 | 5.06 | % | 272,024 | 3,394 | 5.00 | % | ||||||||||||||||
Tax-exempt (1) | 136,216 | 1,340 | 5.22 | % | 75,057 | 693 | 4.89 | % | ||||||||||||||||
Federal funds sold and other | 41,931 | 414 | 4.42 | % | 58,836 | 865 | 6.08 | % | ||||||||||||||||
Total interest-earning assets | 3,500,853 | $ | 48,774 | 5.66 | % | 2,004,884 | $ | 35,508 | 7.15 | % | ||||||||||||||
Nonearning assets | ||||||||||||||||||||||||
Intangible assets | 259,217 | 125,020 | ||||||||||||||||||||||
Other nonearning assets | 153,449 | 99,323 | ||||||||||||||||||||||
Total assets | $ | 3,913,519 | $ | 2,229,227 | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||||||
Interest checking | $ | 379,714 | $ | 1,339 | 1.42 | % | $ | 254,171 | $ | 2,147 | 3.39 | % | ||||||||||||
Savings and money market | 702,933 | 2,722 | 1.56 | % | 501,373 | 4,239 | 3.39 | % | ||||||||||||||||
Certificates of deposit | 1,466,685 | 13,658 | 3.75 | % | 646,251 | 8,071 | 5.01 | % | ||||||||||||||||
Total interest-bearing deposits | 2,549,332 | 17,719 | 2.80 | % | 1,401,795 | 14,457 | 4.14 | % | ||||||||||||||||
Securities sold under agreements to repurchase | 174,847 | 567 | 1.30 | % | 172,872 | 1,891 | 4.39 | % | ||||||||||||||||
Federal Home Loan Bank advances and other borrowings | 208,773 | 1,687 | 3.20 | % | 47,998 | 621 | 5.19 | % | ||||||||||||||||
Subordinated debt | 82,476 | 1,119 | 5.46 | % | 51,548 | 878 | 6.84 | % | ||||||||||||||||
Total interest-bearing liabilities | 3,015,428 | 21,092 | 2.81 | % | 1,674,213 | 17,847 | 4.28 | % | ||||||||||||||||
Noninterest-bearing deposits | 398,337 | — | — | 276,241 | — | — | ||||||||||||||||||
Total deposits and interest-bearing liabilities | 3,413,765 | $ | 21,092 | 2.48 | % | 1,950,454 | $ | 17,847 | 3.67 | % | ||||||||||||||
Other liabilities | 22,252 | 14,718 | ||||||||||||||||||||||
Stockholders’ equity | 477,502 | 264,055 | ||||||||||||||||||||||
$ | 3,913,519 | $ | 2,229,227 | |||||||||||||||||||||
Net interest income | $ | 27,682 | $ | 17,661 | ||||||||||||||||||||
Net interest spread (2) | 2.85 | % | 2.88 | % | ||||||||||||||||||||
Net interest margin (3) | 3.24 | % | 3.58 | % |
(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
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED
Six months ended | Six months ended | |||||||||||||||||||||||
(dollars in thousands) | June 30, 2008 | June 30, 2007 | ||||||||||||||||||||||
Average | Rates/ | Average | Rates/ | |||||||||||||||||||||
Balances | Interest | Yields | Balances | Interest | Yields | |||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans | $ | 2,851,859 | $ | 87,620 | 6.18 | % | $ | 1,564,869 | $ | 59,533 | 7.67 | % | ||||||||||||
Securities: | ||||||||||||||||||||||||
Taxable | 373,929 | 9,430 | 5.07 | % | 272,346 | 6,740 | 4.99 | % | ||||||||||||||||
Tax-exempt (1) | 136,453 | 2,691 | 4.60 | % | 74,009 | 1,363 | 4.90 | % | ||||||||||||||||
Federal funds sold and other | 50,412 | 1,195 | 4.95 | % | 57,367 | 1,611 | 5.66 | % | ||||||||||||||||
Total interest-earning assets | 3,412,653 | $ | 100,935 | 5.98 | % | 1,968,591 | $ | 69,247 | 7.14 | % | ||||||||||||||
Nonearning assets | ||||||||||||||||||||||||
Intangible assets | 259,012 | 123,874 | ||||||||||||||||||||||
Other nonearning assets | 172,116 | 97,113 | ||||||||||||||||||||||
Total assets | $ | 3,843,781 | $ | 2,189,578 | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||||||
Interest checking | $ | 392,011 | $ | 3,468 | 1.78 | % | $ | 249,425 | $ | 4,104 | 3.32 | % | ||||||||||||
Savings and money market | 719,416 | 6,820 | 1.91 | % | 498,625 | 8,364 | 3.38 | % | ||||||||||||||||
Certificates of deposit | 1,419,792 | 28,517 | 4.04 | % | 635,172 | 15,526 | 4.93 | % | ||||||||||||||||
Total interest-bearing deposits | 2,531,219 | 38,805 | 3.08 | % | 1,383,222 | 27,994 | 3.41 | % | ||||||||||||||||
Securities sold under agreements to repurchase | 171,997 | 1,399 | 1.64 | % | 165,026 | 3,603 | 4.40 | % | ||||||||||||||||
Federal Home Loan Bank advances and other borrowings | 176,287 | 3,112 | 3.49 | % | 44,120 | 1,152 | 5.04 | % | ||||||||||||||||
Subordinated debt | 82,476 | 2,578 | 6.28 | % | 51,548 | 1,755 | 6.86 | % | ||||||||||||||||
Total interest-bearing liabilities | 2,961,979 | 45,894 | 3.12 | % | 1,643,916 | 34,504 | 4.23 | % | ||||||||||||||||
Noninterest-bearing deposits | 383,375 | — | — | 273,052 | — | — | ||||||||||||||||||
Total deposits and interest-bearing liabilities | 3,345,354 | $ | 45,894 | 2.76 | % | 1,916,968 | $ | 34,504 | 3.63 | % | ||||||||||||||
Other liabilities | 22,456 | 10,849 | ||||||||||||||||||||||
Stockholders’ equity | 475,971 | 261,761 | ||||||||||||||||||||||
$ | 3,843,781 | $ | 2,189,578 | |||||||||||||||||||||
Net interest income | $ | 55,041 | $ | 34,743 | ||||||||||||||||||||
Net interest spread (2) | 2.86 | % | 2.91 | % | ||||||||||||||||||||
Net interest margin (3) | 3.27 | % | 3.61 | % |
(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
June | March | Dec | Sept | June | Mar | |||||||||||||||||||
(dollars in thousands) | 2008 | 2008 | 2007 | 2007 | 2007 | 2007 | ||||||||||||||||||
Balance sheet data, at quarter end: | ||||||||||||||||||||||||
Total assets | $ | 4,106,055 | 3,888,900 | 3,794,170 | 2,368,079 | 2,315,327 | 2,193,132 | |||||||||||||||||
Total loans | 3,032,272 | 2,866,536 | 2,749,641 | 1,731,245 | 1,663,030 | 1,553,980 | ||||||||||||||||||
Allowance for loan losses | (31,789 | ) | (29,871 | ) | (28,470 | ) | (17,978 | ) | (17,375 | ) | (16,792 | ) | ||||||||||||
Securities | 521,214 | 505,377 | 522,685 | 352,222 | 339,781 | 340,255 | ||||||||||||||||||
Noninterest-bearing deposits | 438,458 | 429,289 | 400,120 | 316,542 | 294,631 | 306,885 | ||||||||||||||||||
Total deposits | 3,152,514 | 2,967,025 | 2,925,319 | 1,826,884 | 1,797,536 | 1,700,132 | ||||||||||||||||||
Securities sold under agreements to repurchase | 183,188 | 171,186 | 156,071 | 145,332 | 140,443 | 116,952 | ||||||||||||||||||
Advances from FHLB and other borrowings | 187,315 | 168,606 | 141,666 | 55,671 | 46,699 | 46,619 | ||||||||||||||||||
Subordinated debt | 82,476 | 82,476 | 82,476 | 51,548 | 51,548 | 51,548 | ||||||||||||||||||
Total stockholders’ equity | 481,709 | 476,772 | 466,610 | 274,636 | 265,194 | 262,917 | ||||||||||||||||||
Balance sheet data, quarterly averages: | ||||||||||||||||||||||||
Total assets | $ | 3,913,519 | 3,774,042 | 2,791,669 | 2,378,501 | 2,229,227 | 2,149,928 | |||||||||||||||||
Total loans | 2,941,973 | 2,761,745 | 2,063,442 | 1,697,862 | 1,598,967 | 1,530,771 | ||||||||||||||||||
Securities | 516,949 | 503,815 | 410,142 | 347,423 | 347,081 | 345,630 | ||||||||||||||||||
Total earning assets | 3,500,853 | 3,324,452 | 2,541,799 | 2,151,583 | 2,004,884 | 1,932,298 | ||||||||||||||||||
Noninterest-bearing deposits | 398,337 | 368,413 | 327,866 | 293,701 | 276,241 | 269,864 | ||||||||||||||||||
Total deposits | 2,947,669 | 2,881,518 | 2,135,973 | 1,814,135 | 1,678,036 | 1,634,513 | ||||||||||||||||||
Securities sold under agreements to repurchase | 174,847 | 169,146 | 201,605 | 194,774 | 172,872 | 157,180 | ||||||||||||||||||
Advances from FHLB and other borrowings | 208,773 | 143,802 | 57,970 | 29,946 | 47,998 | 40,241 | ||||||||||||||||||
Subordinated debt | 82,476 | 82,476 | 72,391 | 51,548 | 51,548 | 51,548 | ||||||||||||||||||
Total stockholders’ equity | 477,502 | 474,439 | 309,431 | 271,653 | 264,055 | 259,466 | ||||||||||||||||||
Statement of operations data, for the three months ended: | ||||||||||||||||||||||||
Interest income | $ | 48,774 | 52,161 | 43,338 | 38,347 | 35,508 | 33,739 | |||||||||||||||||
Interest expense | 21,092 | 24,802 | 21,329 | 19,387 | 17,847 | 16,657 | ||||||||||||||||||
Net interest income | 27,682 | 27,359 | 22,009 | 18,960 | 17,661 | 17,082 | ||||||||||||||||||
Provision for loan losses | 2,787 | 1,591 | 2,260 | 772 | 900 | 788 | ||||||||||||||||||
Net interest income after provision for loan losses | 24,895 | 25,768 | 19,749 | 18,188 | 16,761 | 16,294 | ||||||||||||||||||
Noninterest income | 9,058 | 8,367 | 6,612 | 5,332 | 5,552 | 5,026 | ||||||||||||||||||
Noninterest expense | 23,075 | 25,492 | 17,762 | 15,110 | 14,484 | 13,124 | ||||||||||||||||||
Income before taxes | 10,878 | 8,644 | 8,599 | 8,410 | 7,828 | 8,196 | ||||||||||||||||||
Income tax expense | 2,917 | 2,579 | 2,357 | 2,638 | 2,402 | 2,594 | ||||||||||||||||||
Net income | $ | 7,961 | 6,065 | 6,242 | 5,772 | 5,426 | 5,602 | |||||||||||||||||
Profitability and other ratios: | ||||||||||||||||||||||||
Return on avg. assets (1) | 0.82 | % | 0.65 | % | 0.89 | % | 0.96 | % | 0.98 | % | 1.06 | % | ||||||||||||
Return on avg. equity (1) | 6.71 | % | 5.14 | % | 8.00 | % | 8.43 | % | 8.24 | % | 8.76 | % | ||||||||||||
Net interest margin (2) | 3.24 | % | 3.37 | % | 3.49 | % | 3.54 | % | 3.58 | % | 3.64 | % | ||||||||||||
Noninterest income to total revenue (3) | 24.66 | % | 23.42 | % | 23.10 | % | 21.95 | % | 23.92 | % | 22.73 | % | ||||||||||||
Noninterest income to avg. assets (1) | 0.93 | % | 0.89 | % | 0.94 | % | 0.89 | % | 1.00 | % | 0.95 | % | ||||||||||||
Noninterest exp. to avg. assets (1) | 2.36 | % | 2.71 | % | 2.52 | % | 2.52 | % | 2.61 | % | 2.48 | % | ||||||||||||
Efficiency ratio (4) | 62.81 | % | 71.35 | % | 62.06 | % | 62.20 | % | 62.40 | % | 59.36 | % | ||||||||||||
Avg. loans to average deposits | 99.81 | % | 95.84 | % | 96.60 | % | 93.59 | % | 95.29 | % | 93.65 | % | ||||||||||||
Securities to total assets | 12.69 | % | 13.00 | % | 13.75 | % | 14.87 | % | 14.68 | % | 15.51 | % | ||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 116.10 | % | 114.30 | % | 118.77 | % | 119.75 | % | 119.75 | % | 119.75 | % | ||||||||||||
Brokered time deposits to total deposits | 12.53 | % | 7.78 | % | 9.48 | % | 8.04 | % | 8.17 | % | 5.83 | % |
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA — UNAUDITED
SELECTED QUARTERLY FINANCIAL DATA — UNAUDITED
June | March | Dec | Sept | June | Mar | |||||||||||||||||||
(dollars in thousands) | 2008 | 2008 | 2007 | 2007 | 2007 | 2007 | ||||||||||||||||||
Asset quality information and ratios: | ||||||||||||||||||||||||
Nonperforming assets: | ||||||||||||||||||||||||
Nonaccrual loans | $ | 13,067 | 17,124 | 19,677 | 2,364 | 2,392 | 4,705 | |||||||||||||||||
Other real estate | $ | 9,181 | 3,567 | 1,673 | 878 | 687 | 927 | |||||||||||||||||
Past due loans over 90 days and still accruing interest | $ | 2,272 | 2,002 | 1,613 | 633 | 606 | 98 | |||||||||||||||||
Net loan charge-offs (6) | $ | 870 | 190 | 462 | 169 | 317 | 114 | |||||||||||||||||
Allowance for loan losses to total loans | 1.05 | % | 1.04 | % | 1.04 | % | 1.04 | % | 1.04 | % | 1.08 | % | ||||||||||||
Allowance for loan losses to nonaccrual loans | 243.3 | % | 174.4 | % | 144.7 | % | 760.5 | % | 726.4 | % | 356.9 | % | ||||||||||||
As a percentage of total loans and ORE: | ||||||||||||||||||||||||
Past due accruing loans over 30 days | 0.34 | % | 0.77 | % | 0.45 | % | 0.38 | % | 0.31 | % | 0.33 | % | ||||||||||||
Nonperforming assets | 0.73 | % | 0.72 | % | 0.78 | % | 0.19 | % | 0.19 | % | 0.36 | % | ||||||||||||
Potential problem loans (5) | 0.40 | % | 0.64 | % | 0.56 | % | 0.40 | % | 0.16 | % | 0.21 | % | ||||||||||||
Annualized net loan charge-offs year-to-date to avg. loans (6) | 0.07 | % | 0.03 | % | 0.07 | % | 0.05 | % | 0.06 | % | 0.03 | % | ||||||||||||
Avg. commercial loan internal risk ratings (5) | 4.0 | 4.1 | 4.1 | 4.1 | 4.1 | 4.1 | ||||||||||||||||||
Avg. loan account balances (7) | $ | 163 | 170 | 160 | 169 | 164 | 156 | |||||||||||||||||
Interest rates and yields: | ||||||||||||||||||||||||
Loans | 5.77 | % | 6.61 | % | 7.23 | % | 7.65 | % | 7.66 | % | 7.68 | % | ||||||||||||
Securities | 5.10 | % | 5.11 | % | 4.92 | % | 4.99 | % | 4.98 | % | 4.96 | % | ||||||||||||
Total earning assets | 5.66 | % | 6.37 | % | 6.82 | % | 7.12 | % | 7.15 | % | 7.13 | % | ||||||||||||
Total deposits, including non-interest bearing | 2.42 | % | 2.94 | % | 3.28 | % | 3.51 | % | 3.46 | % | 3.36 | % | ||||||||||||
Securities sold under agreements to repurchase | 1.30 | % | 1.98 | % | 3.36 | % | 4.20 | % | 4.39 | % | 4.42 | % | ||||||||||||
FHLB advances and other borrowings | 3.20 | % | 3.99 | % | 4.61 | % | 5.10 | % | 5.19 | % | 5.36 | % | ||||||||||||
Subordinated debt | 5.46 | % | 7.11 | % | 7.20 | % | 6.90 | % | 6.84 | % | 6.89 | % | ||||||||||||
Total deposits and interest-bearing liabilities | 2.48 | % | 3.04 | % | 3.43 | % | 3.68 | % | 3.67 | % | 3.59 | % | ||||||||||||
Capital ratios (8): | ||||||||||||||||||||||||
Stockholders’ equity to total assets | 11.7 | % | 12.3 | % | 12.3 | % | 11.6 | % | 11.5 | % | 12.0 | % | ||||||||||||
Leverage | 8.5 | % | 8.5 | % | 11.6 | % | 9.2 | % | 9.5 | % | 9.5 | % | ||||||||||||
Tier one risk-based | 9.3 | % | 9.5 | % | 9.5 | % | 10.4 | % | 10.4 | % | 10.9 | % | ||||||||||||
Total risk-based | 10.3 | % | 10.4 | % | 10.4 | % | 11.3 | % | 11.3 | % | 11.8 | % |
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA — UNAUDITED
SELECTED QUARTERLY FINANCIAL DATA — UNAUDITED
June | March | Dec | Sept | June | Mar | |||||||||||||||||||
(dollars in thousands, except per share data) | 2008 | 2008 | 2007 | 2007 | 2007 | 2007 | ||||||||||||||||||
Per share data: | ||||||||||||||||||||||||
Earnings — basic | $ | 0.36 | 0.27 | 0.35 | 0.37 | 0.35 | 0.36 | |||||||||||||||||
Earnings — diluted | $ | 0.34 | 0.26 | 0.33 | 0.35 | 0.33 | 0.34 | |||||||||||||||||
Book value at quarter end (9) | $ | 21.33 | 21.22 | 20.95 | 17.66 | 17.06 | 16.93 | |||||||||||||||||
Weighted avg. shares — basic | 22,356,667 | 22,331,398 | 17,753,661 | 15,503,284 | 15,494,522 | 15,433,442 | ||||||||||||||||||
Weighted avg. shares — diluted | 23,629,234 | 23,484,754 | 19,110,851 | 16,609,328 | 16,664,213 | 16,617,484 | ||||||||||||||||||
Common shares outstanding | 22,587,564 | 22,467,263 | 22,264,817 | 15,553,037 | 15,545,581 | 15,530,975 | ||||||||||||||||||
Investor information: | ||||||||||||||||||||||||
Closing sales price | $ | 20.09 | 25.60 | 25.42 | 28.82 | 29.36 | 30.51 | |||||||||||||||||
High sales price during quarter | $ | 29.29 | 26.75 | 30.93 | 31.31 | 31.48 | 33.85 | |||||||||||||||||
Low sales price during quarter | $ | 20.05 | 20.82 | 24.85 | 21.62 | 28.27 | 29.40 | |||||||||||||||||
Other information: | ||||||||||||||||||||||||
Gains on sale of loans and loan participations sold: | ||||||||||||||||||||||||
Mortgage loan sales: | ||||||||||||||||||||||||
Gross loans sold | $ | 79,693 | 59,757 | 40,273 | 42,895 | 52,197 | 31,044 | |||||||||||||||||
Gross fees (10) | $ | 1,364 | 1,114 | 750 | 659 | 846 | 544 | |||||||||||||||||
Gross fees as a percentage of mortgage loans originated | 1.71 | % | 1.86 | % | 1.86 | % | 1.54 | % | 1.62 | % | 1.75 | % | ||||||||||||
Commercial loan participations sold | $ | 8 | 4 | 8 | 19 | 167 | 45 | |||||||||||||||||
Gains on sales of investment securities, net | $ | — | 1 | 16 | — | — | — | |||||||||||||||||
Brokerage account assets, at quarter-end (11) | $ | 826,000 | 859,000 | 878,000 | 590,000 | 643,000 | 617,000 | |||||||||||||||||
Trust account assets, at quarter-end | $ | 527,000 | 493,000 | 464,000 | 512,000 | 475,000 | 400,000 | |||||||||||||||||
Floating rate loans as a percentage of loans (12) | 44.0 | % | 41.4 | % | 41.8 | % | 44.6 | % | 45.5 | % | 46.3 | % | ||||||||||||
Balance of commercial loan participations sold to other banks and serviced by Pinnacle, at quarter end | $ | 125,308 | 113,701 | 110,352 | 125,370 | 115,913 | 114,143 | |||||||||||||||||
Core deposits to total funding (13) | 52.3 | % | 57.6 | % | 58.2 | % | 61.4 | % | 62.3 | % | 63.7 | % | ||||||||||||
Risk-weighted assets | 3,353,142 | 3,181,612 | 3,103,293 | 1,998,401 | 1,921,648 | 1,780,107 | ||||||||||||||||||
Total assets per full-time equivalent employee | 5,828 | 5,669 | 5,415 | 5,257 | 5,250 | 5,228 | ||||||||||||||||||
Annualized revenues per full-time equivalent employee | 209.8 | 209.5 | 161.8 | 213.9 | 211.1 | 210.8 | ||||||||||||||||||
Number of employees (full-time equivalent) | 704.5 | 686.0 | 702.0 | 450.5 | 441.0 | 419.5 | ||||||||||||||||||
Associate retention rate (14) | 90.9 | % | 92.0 | % | 89.7 | % | 89.4 | % | 88.1 | % | 85.3 | % | ||||||||||||
Selected economic information (in thousands) (15): | ||||||||||||||||||||||||
Nashville MSA nonfarm employment | 767.1 | 759.2 | 795.2 | 763.6 | 759.5 | 757.5 | ||||||||||||||||||
Knoxville MSA nonfarm employment | 339.3 | 335.3 | 358.7 | 337.2 | 335.9 | 335.2 | ||||||||||||||||||
Nashville MSA unemployment | 4.3 | % | 4.8 | % | 4.2 | % | 3.5 | % | 3.7 | % | 4.0 | % | ||||||||||||
Knoxville MSA unemployment | 4.1 | % | 4.7 | % | 3.9 | % | 3.2 | % | 3.4 | % | 3.8 | % | ||||||||||||
Nashville residential median home price | $ | 183.6 | 178.4 | 187.9 | 182.3 | 196.0 | 173.4 | |||||||||||||||||
Nashville inventory of residential homes for sale | 15.8 | 15.1 | 13.4 | 15.4 | 14.6 | 12.9 |
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 June 30, | As of December 31, | |||||||
(dollars in thousands, except per share data) | 2008 | 2007 | ||||||
Reconciliation of certain financial measures: | ||||||||
Tangible assets: | ||||||||
Total assets | $ | 4,106,055 | $ | 3,794,170 | ||||
Less: Goodwill | (241,989 | ) | (243,574 | ) | ||||
Core deposit intangible | (17,178 | ) | (17,326 | ) | ||||
Net tangible assets | $ | 3,846,888 | $ | 3,533,271 | ||||
Tangible equity: | ||||||||
Total stockholders’ equity | $ | 481,709 | $ | 466,610 | ||||
Less: Goodwill | (241,989 | ) | (243,574 | ) | ||||
Core deposit intangible | (17,178 | ) | (17,326 | ) | ||||
Net tangible equity | $ | 222,543 | $ | 205,711 | ||||
Tangible equity divided by tangible assets | 5.79 | % | 5.82 | % | ||||
Tangible equity per common share | $ | 9.85 | $ | 9.24 | ||||
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
(dollars in thousands) | 2008 | 2007 | 2008 | 2007 | ||||||||||||
Average tangible assets: | ||||||||||||||||
Total average assets | $ | 3,913,519 | $ | 2,229,227 | $ | 3,843,781 | $ | 2,189,578 | ||||||||
Less: Average intangible assets | (259,217 | ) | (125,020 | ) | (259,012 | ) | (123,874 | ) | ||||||||
Net average tangible assets | $ | 3,654,302 | $ | 2,104,207 | $ | 3,584,769 | $ | 2,065,704 | ||||||||
Average tangible equity: | ||||||||||||||||
Total average stockholders’ equity | $ | 477,502 | $ | 264,055 | $ | 475,971 | $ | 261,761 | ||||||||
Less: Average intangible assets | (259,217 | ) | (125,020 | ) | (259,012 | ) | (123,874 | ) | ||||||||
Net average tangible stockholders’ equity | $ | 218,285 | $ | 139,035 | $ | 216,959 | $ | 137,887 | ||||||||
Net income | $ | 7,961 | $ | 5,426 | $ | 14,026 | $ | 11,028 | ||||||||
Return on average tangible assets (annualized) | 0.88 | % | 1.03 | % | 0.79 | % | 1.07 | % | ||||||||
Return on average tangible stockholders’ equity (annualized) | 14.67 | % | 15.65 | % | 13.00 | % | 16.04 | % | ||||||||
Net income | $ | 7,961 | $ | 5,426 | $ | 14,026 | $ | 11,028 | ||||||||
Impact of merger related expense, net of tax | 820 | — | 2,707 | — | ||||||||||||
Net income before impact of merger related expense | $ | 8,781 | $ | 5,426 | $ | 16,733 | $ | 11,028 | ||||||||
Fully-diluted earnings per share before impact of merger related expense | $ | 0.37 | $ | 0.33 | $ | 0.71 | $ | 0.66 | ||||||||
Return on average assets before impact of merger expenses | 0.90 | % | 0.98 | % | 0.88 | % | 1.01 | % | ||||||||
Return on average equity before impact of merger expenses | 7.40 | % | 8.24 | % | 7.07 | % | 8.45 | % | ||||||||
Return on average tangible equity before impact of merger expenses | 16.18 | % | 15.65 | % | 15.51 | % | 16.04 | % | ||||||||
Total expenses | $ | 23,075 | $ | 14,484 | $ | 48,567 | $ | 27,608 | ||||||||
Less: merger expense | (1,349 | ) | — | (4,455 | ) | — | ||||||||||
Total expenses before impact of merger related expense | $ | 21,726 | $ | 14,484 | $ | 44,112 | $ | 27,608 | ||||||||
Efficiency ratio before impact of merger related expense | 59.13 | % | 62.40 | % | 60.87 | % | 60.92 | % | ||||||||
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. Book value per share computed by dividing total stockholders’ equity by common shares outstanding
9. 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.
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.