FOR IMMEDIATE RELEASE
| MEDIA CONTACT: | Nikki Klemmer, 615-743-6132 |
| FINANCIAL CONTACT: | Harold Carpenter, 615-744-3742 |
| WEBSITE: | www.pnfp.com |
PINNACLE FINANCIAL REPORTS EPS UP 27.3% OVER SAME QUARTER LAST YEAR
Net loans up 12.9% over same quarter last year
NASHVILLE, Tenn., Oct. 15, 2013 – Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) today reported net income available to common stockholders of $14.6 million for the quarter ended Sept. 30, 2013, up from net income available to common stockholders of $11.3 million for the same quarter in 2012. Net income per diluted common share was $0.42 for the quarter ended Sept. 30, 2013, compared to net income per diluted common share of $0.33 for the quarter ended Sept. 30, 2012, an increase of 27.3 percent.
Pinnacle also reported net income available to common stockholders of $42.4 million for the nine months ended Sept. 30, 2013, up from net income available to common stockholders of $26.3 million for the same nine-month period in 2012. Net income per diluted common share was $1.23
for the nine months ended Sept. 30, 2013, compared to net income per diluted common share of $0.76 for the nine months ended Sept. 30, 2012, an increase of 61.8 percent.
"Our third quarter operating results represent another strong quarter of execution by our associates," said M. Terry Turner, Pinnacle's president and chief executive officer. "We experienced strong earnings growth and another record quarter in operating revenues as we continue to drive toward our previously stated return-on-average-asset goal of 1.10 percent to 1.30 percent."
GROWING THE CORE EARNINGS CAPACITY OF THE FIRM:
| · | Loans at Sept. 30, 2013 were a record $3.969 billion, an increase of $257.1 million from Dec. 31, 2012, and $441.1 million from Sept. 30, 2012, a year-over-year growth rate of 12.6 percent. Loan growth during the third quarter was $43.9 million compared to $153.0 million last quarter and $80.5 million in the same quarter last year. |
| · | Average balances of noninterest bearing deposit accounts were $1.10 billion in the third quarter of 2013, up 8.7 percent from the second quarter of 2013 and up 37.7 percent over the same quarter last year. |
| · | Revenues (excluding securities gains and losses) for the quarter ended Sept. 30, 2013 were a record $57.4 million, an increase from $54.9 million last quarter and up 11.7 percent over the $51.4 million for the same quarter last year. |
| · | Consistent with previously disclosed expectations, the firm's net interest margin decreased to 3.72 percent for the quarter ended Sept. 30, 2013, down from 3.77 percent last quarter and 3.78 percent for the quarter ended Sept. 30, 2012. |
| · | The firm's efficiency ratio for the quarter ended Sept. 30, 2013 was 59.5 percent compared to 56.2 percent last quarter and 65.4 percent for the same quarter last year. |
"Although our loan growth for the third quarter was less than we had anticipated at the beginning of the quarter, we remain optimistic about the fourth quarter as our loan pipelines appear to be gaining strength as we approach year-end," Turner said. "Perhaps more importantly, we continue to experience strong growth in operating deposit accounts. We are pleased that a growing number of clients recognize the differentiated service we provide over that of the national and large regional franchises doing business in our markets. As a result, our average noninterest-bearing account balances increased $301.0 million during the last year, up 37.7 percent over the average balances of the third quarter last year."
OTHER THIRD QUARTER 2013 HIGHLIGHTS:
| o | Net interest income for the quarter ended Sept. 30, 2013 was $44.6 million, compared to $43.6 million in the second quarter of 2013 and $40.9 million for the third quarter of 2012. Net interest income for the third quarter of 2013 was up 8.9 percent year-over-year and is at its highest quarterly level since the firm's founding in 2000. |
| o | Noninterest income for the quarter ended Sept. 30, 2013, was $11.4 million, compared to $11.3 million for the second quarter of 2013 and $10.4 million for the same quarter last year. Excluding securities gains and losses in each period and noncredit related loan losses in the second quarter of 2013, noninterest income was up 13.0 percent on a linked-quarter basis and 22.4 percent over the same quarter last year. |
| § | Gains on mortgage loans sold, net of commissions, were $1.33 million during the third quarter of 2013, compared to $1.95 million during the second quarter of 2013 and $1.98 million during the third quarter of 2012. |
§ Losses on the sale of available-for-sale investment securities in the third quarter 2013 were $1.44 million compared to $25,000 for the second quarter of 2013 and $50,000 for the third quarter of 2012.
| § | Other noninterest income for the third quarter of 2013 increased by $1.82 million from the second quarter of 2013 and by $2.26 million over the third quarter of last year. A $1.1 million gain on the sale of the government guaranteed portion of a loan contributed to the increase in other noninterest income during the third quarter of 2013 compared to a similar gain of $166,000 in the same quarter in 2012. |
"Operationally, we had another very sound quarter," said Harold R. Carpenter, Pinnacle's chief financial officer. "Net interest income is up almost $975,000 over the previous quarter. As to fee income, our mortgage revenues decreased by $623,000 from the second quarter of 2013, but increases in other fee areas are more than offsetting the drop in mortgage refinance activity. Excluding the impact of securities losses, the growth in both net interest income and noninterest income produced another record revenue quarter for our firm.
"Loan yields remain a challenge for our industry. On a linked-quarter basis, loan yields decreased by 8 basis points this quarter compared to 17 basis points during the second quarter. These decreases were offset somewhat by a linked-quarter decrease in total deposit costs of 4 basis points during the third quarter after a decrease of 5 basis points during the second quarter. We believe the rate of decrease in both loan yields and deposit costs will likely slow in future quarters, but we remain optimistic that we will continue to grow our net interest income."
| · | Noninterest and income tax expense |
| o | Noninterest expense for the quarter ended Sept. 30, 2013 was $33.3 million, compared to $30.9 million in the second quarter of 2013 and $33.6 million in the third quarter of 2012. |
| § | Salaries and employee benefits costs were up from the second quarter of 2013 by approximately $440,000 and by $1.54 million from the third quarter of 2012. |
| § | Other real estate expenses were $700,000 in the third quarter of 2013, compared to $1.39 million in the second quarter of 2013 and $2.40 million in the third quarter of 2012. |
| o | Income tax expense was $7.31 million for the third quarter of 2013, compared to $6.98 million in the second quarter of 2013 and $5.02 million in the third quarter of 2012. The forecasted effective tax rate for 2013 is 33.0 percent. |
"Third quarter 2013 noninterest expenses increased by approximately $2.5 million over the second quarter. Noninterest expense in the second quarter of 2013 included the $2.0 million benefit we discussed last quarter from the reversal of an off-balance sheet allowance when the underlying letter of credit funded, which impacted our 2013 expense run rate," Carpenter said. "Health care expenses were higher in the third quarter as associates began to meet their individual plan deductibles in the latter part of the year. We also experienced increased legal costs during the third quarter. A portion of these expense increases were offset by reduced other real estate expenses during the quarter when compared to the second quarter of 2013. We anticipate our fourth quarter expenses to be consistent with or slightly less than the third quarter."
| o | Nonperforming assets declined by $1.04 million from June 30, 2013, a linked-quarter reduction of 2.85 percent and the 13th consecutive quarterly reduction. Nonperforming assets were 0.89 percent of total loans and ORE at Sept. 30, 2013, compared to 1.65 percent for the same quarter last year and 0.93 percent last quarter. |
| o | Classified assets as a percentage of Tier 1 capital plus allowance were 20.6 percent at Sept. 30, 2013, compared to 23.3 percent at June 30, 2013, and 33.4 percent at Sept. 30, 2012. |
| o | Allowance for loan losses represented 1.70 percent of total loans at Sept. 30, 2013, compared to 1.75 percent at June 30, 2013, and 1.96 percent at Sept. 30, 2012. The ratio of the allowance for loan losses to nonperforming loans increased to 336.6 percent at Sept. 30, 2013, from 334.1 percent at June 30, 2013, and 188.9 percent at Sept. 30, 2012. |
| § | Net charge-offs were $2.10 million for the quarter ended Sept. 30, 2013, compared to $1.94 million for the quarter ended Sept. 30, 2012, and $3.49 million for the second quarter of 2013. Annualized net charge-offs for the quarter ended Sept. 30, 2013, were 0.21 percent compared to 0.22 percent for the quarter ended Sept. 30, 2012. Annualized net charge-offs for the nine months ended Sept. 30, 2013, were 0.27 percent. |
| § | Provision for loan losses decreased from $1.41 million for the third quarter of 2012 to $680,000 for the third quarter of 2013. |
WEBCAST AND CONFERENCE CALL INFORMATION
Pinnacle will host a webcast and conference call at 8:30 a.m. (CDT) on Oct. 16, 2013, to discuss third quarter 2013 results and other matters. To access the call for audio only, please call 1-877-602-7944. For the presentation and streaming audio, please access the webcast on the investor relations page of Pinnacle's website at www.pnfp.com
. For those unable to participate in the webcast, it will be archived on the investor relations page of Pinnacle's website at www.pnfp.com for 90 days following the presentation.
Pinnacle provides a full range of banking, investment, mortgage and insurance products and services designed for small- to mid-sized businesses and their owners and individuals interested in a comprehensive relationship with their financial institution. Comprehensive wealth management services, such as financial planning and trust, help clients increase, protect and distribute their assets.
The firm began operations in a single downtown Nashville location in Oct. 2000 and has since grown to almost $5.4 billion in assets at Sept. 30, 2013. At Sept. 30, 2013, Pinnacle is the second-largest bank holding company headquartered in Tennessee, with 29 offices in eight Middle Tennessee counties and four offices in Knoxville. The firm was recently recognized for its financial performance in Sandler O'Neil + Partners' annual Sm-All Stars report for the third time. Additionally, Great Place to Work®named Pinnacle one of the best workplaces in the United States on its 2013 Best Small/Medium Workplaces list published in FORTUNE magazine. Pinnacle ranked No. 5 out of 25 on the medium-sized company list.
Additional information concerning Pinnacle, which was recently added to the NASDAQ Financial-100 Index, can be accessed at www.pnfp.com.
###
Certain of the statements in this release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "expect," "anticipate," "goal," "objective," "intend," "plan," "believe," "should," "seek," "estimate" and similar expressions are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking. All forward-looking statements are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of Pinnacle Financial to differ materially from any results expressed or implied by such forward-looking statements. Such risks include, without limitation, (i) deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses; (ii) continuation of the historically low short-term interest rate environment; (iii) the inability of Pinnacle Financial to grow its loan portfolio; (iv) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (v) effectiveness of Pinnacle Financial's asset management activities in improving, resolving or liquidating lower-quality assets; (vi) increased competition with other financial institutions; (vii) greater than anticipated adverse conditions in the national or local economies including the Nashville-Davidson-Murfreesboro-Franklin MSA and the Knoxville MSA, particularly in commercial and residential real estate markets; (viii) rapid fluctuations or unanticipated changes in interest rates on loans or deposits; (ix) the results of regulatory examinations; (x) the ability to retain large, uninsured deposits; (xi) the development of any new market other than Nashville or Knoxville; (xii) a merger or acquisition; (xiii) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including intangible assets; (xiv) the ability to attract additional financial advisors or to attract customers from other financial institutions; (xv) further deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xvi) inability to comply with regulatory capital requirements, including those resulting from recently adopted changes to capital calculation methodologies and required capital maintenance levels; (xvii) risks associated with litigation, including the applicability of insurance coverage; (xviii) approval of the declaration of any dividend by Pinnacle Financial's board of directors and, (xviii) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, including regulatory or legislative developments arising out of current unsettled conditions in the economy, including implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act. A more detailed description of these and other risks is contained in Pinnacle Financial's most recent annual report on Form 10-K filed with the Securities and Exchange Commission on February 22, 2013 and Pinnacle Financial's most recent quarterly report on Form 10-Q filed with the Securities and Exchange Commission on July 31, 2013. Many of such factors are beyond Pinnacle Financial's ability to control or predict, and readers are cautioned not to put undue reliance on such forward-looking statements. Pinnacle Financial disclaims any obligation to update or revise any forward-looking statements contained in this release, whether as a result of new information, future events or otherwise.
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | |
| CONSOLIDATED BALANCE SHEETS – UNAUDITED | |
| | | | | | |
| | | September 30, 2013 | | | December 31, 2012 | |
ASSETS | | | | | | |
| Cash and noninterest-bearing due from banks | | $ | 92,150,263 | | | $ | 51,946,542 | |
| Interest-bearing due from banks | | | 118,351,624 | | | | 111,535,083 | |
| Federal funds sold and other | | | 639,572 | | | | 1,807,044 | |
| Cash and cash equivalents | | | 211,141,459 | | | | 165,288,669 | |
| | | | | | | | |
| Securities available-for-sale, at fair value | | | 704,291,206 | | | | 706,577,806 | |
| Securities held-to-maturity (fair value of $38,717,744 and $583,212 at | | | | | | | | |
| September 30, 2013 and December 31, 2012, respectively) | | | 39,593,672 | | | | 574,863 | |
| Mortgage loans held-for-sale | | | 16,961,925 | | | | 41,194,639 | |
| | | | | | | | |
| Loans | | | 3,969,302,182 | | | | 3,712,162,430 | |
| Less allowance for loan losses | | | (67,279,672 | ) | | | (69,417,437 | ) |
| Loans, net | | | 3,902,022,510 | | | | 3,642,744,993 | |
| | | | | | | | |
| Premises and equipment, net | | | 74,117,834 | | | | 75,804,895 | |
| Other investments | | | 30,537,063 | | | | 26,962,890 | |
| Accrued interest receivable | | | 16,167,556 | | | | 14,856,615 | |
| Goodwill | | | 243,807,645 | | | | 244,040,421 | |
| Core deposit and other intangible assets | | | 4,087,425 | | | | 5,103,273 | |
| Other real estate owned | | | 15,522,233 | | | | 18,580,097 | |
| Other assets | | | 132,950,060 | | | | 98,819,455 | |
| Total assets | | $ | 5,391,200,588 | | | $ | 5,040,548,616 | |
| | | | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | |
| Deposits: | | | | | | | | |
| Noninterest-bearing | | $ | 1,138,420,589 | | | $ | 985,689,460 | |
| Interest-bearing | | | 784,995,026 | | | | 760,786,247 | |
| Savings and money market accounts | | | 1,860,598,743 | | | | 1,662,256,403 | |
| Time | | | 549,528,625 | | | | 606,455,873 | |
| Total deposits | | | 4,333,542,983 | | | | 4,015,187,983 | |
| Securities sold under agreements to repurchase | | | 84,031,927 | | | | 114,667,475 | |
| Federal Home Loan Bank advances | | | 115,670,655 | | | | 75,850,390 | |
| Subordinated debt and other borrowings | | | 99,283,292 | | | | 106,158,292 | |
| Accrued interest payable | | | 925,097 | | | | 1,360,598 | |
| Other liabilities | | | 45,530,772 | | | | 48,252,519 | |
| Total liabilities | | | 4,678,984,726 | | | | 4,361,477,257 | |
| | | | | | | | |
| 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; 35,133,733 shares and 34,696,597 | | | | | | | | |
| shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | | | 35,133,733 | | | | 34,696,597 | |
| Additional paid-in capital | | | 547,641,227 | | | | 543,760,439 | |
| Retained earnings | | | 129,792,296 | | | | 87,386,689 | |
| Accumulated other comprehensive (loss) income, net of taxes | | | (351,394 | ) | | | 13,227,634 | |
| Stockholders' equity | | | 712,215,862 | | | | 679,071,359 | |
| Total liabilities and stockholders' equity | | $ | 5,391,200,588 | | | $ | 5,040,548,616 | |
| | | | | | | | |
| This information is preliminary and based on company data available at the time of the presentation. | | | | | | | | |
| | | | | | | | |
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | | | | | | | | |
| CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED |
| | | | | | | | | |
| | Three Months Ended | | | Nine Months Ended | |
| | September 30, | | | September 30, | |
| | | 2013 | | 2012 | | | 2013 | | 2012 | |
| Interest income: | | | | | | | | | | |
| Loans, including fees | | $ | 42,778,193 | | $ | 40,405,396 | | | $ | 126,441,555 | | $ | 118,331,163 | |
| Securities | | | | | | | | | | | | | | |
| Taxable | | | 3,538,446 | | | 3,973,717 | | | | 10,860,146 | | | 13,356,957 | |
| Tax-exempt | | | 1,601,067 | | | 1,621,541 | | | | 4,741,440 | | | 4,972,539 | |
| Federal funds sold and other | | | 259,536 | | | 440,254 | | | | 834,748 | | | 1,557,831 | |
| Total interest income | | | 48,177,242 | | | 46,440,908 | | | | 142,877,889 | | | 138,218,490 | |
| | | | | | | | | | | | | | |
| Interest expense: | | | | | | | | | | | | | | |
| Deposits | | | 2,708,376 | | | 3,986,328 | | | | 9,076,757 | | | 13,112,653 | |
| Securities sold under agreements to repurchase | | | 55,601 | | | 99,379 | | | | 204,240 | | | 370,405 | |
| Federal Home Loan Bank advances and other borrowings | | | 840,318 | | | 1,422,845 | | | | 2,666,721 | | | 4,114,008 | |
| Total interest expense | | | 3,604,295 | | | 5,508,552 | | | | 11,947,718 | | | 17,597,066 | |
| Net interest income | | | 44,572,947 | | | 40,932,356 | | | | 130,930,171 | | | 120,621,424 | |
| Provision for loan losses | | | 684,956 | | | 1,412,575 | | | | 5,631,408 | | | 3,080,892 | |
| Net interest income after provision for loan losses | | | 43,887,991 | | | 39,519,781 | | | | 125,298,763 | | | 117,540,532 | |
| | | | | | | | | | | | | | |
| Noninterest income: | | | | | | | | | | | | | | |
| Service charges on deposit accounts | | | 2,797,342 | | | 2,531,707 | | | | 7,818,452 | | | 7,295,045 | |
| Investment services | | | 1,955,652 | | | 1,676,601 | | | | 5,643,690 | | | 4,934,262 | |
| Insurance sales commissions | | | 1,021,430 | | | 987,222 | | | | 3,522,430 | | | 3,415,945 | |
| Gain on mortgage loans sold, net | | | 1,326,469 | | | 1,978,935 | | | | 5,130,411 | | | 4,930,190 | |
| (Loss) gain on sale of investment securities, net of OTTI | | | (1,441,234 | ) | | (49,784 | ) | | | (1,466,475 | | | 162,733 | |
| Trust fees | | | 931,543 | | | 767,042 | | | | 2,756,079 | | | 2,332,716 | |
| Other noninterest income | | | 4,796,079 | | | 2,537,863 | | | | 11,210,770 | | | 7,217,879 | |
| Total noninterest income | | | 11,387,281 | | | 10,429,586 | | | | 34,615,357 | | | 30,288,770 | |
| | | | | | | | | | | | | | |
| Noninterest expense: | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 21,009,680 | | | 19,470,535 | | | | 61,152,789 | | | 58,500,279 | |
| Equipment and occupancy | | | 5,412,865 | | | 5,156,131 | | | | 15,730,074 | | | 15,217,897 | |
| Other real estate expense | | | 699,211 | | | 2,399,232 | | | | 2,810,779 | | | 10,179,572 | |
| Marketing and other business development | | | 720,866 | | | 834,661 | | | | 2,498,708 | | | 2,359,760 | |
| Postage and supplies | | | 581,433 | | | 637,906 | | | | 1,690,588 | | | 1,816,925 | |
| Amortization of intangibles | | | 246,675 | | | 683,430 | | | | 1,015,848 | | | 2,055,564 | |
| Other noninterest expense | | | 4,652,161 | | | 4,396,465 | | | | 11,725,844 | | | 13,183,603 | |
| Total noninterest expense | | | 33,322,891 | | | 33,578,360 | | | | 96,624,630 | | | 103,313,600 | |
| Income before income taxes | | | 21,952,381 | | | 16,371,007 | | | | 63,289,490 | | | 44,515,702 | |
| Income tax expense | | | 7,305,431 | | | 5,021,882 | | | | 20,883,883 | | | 14,361,979 | |
| Net income | | | 14,646,950 | | | 11,349,125 | | | | 42,405,607 | | | 30,153,723 | |
| Preferred dividends | | | - | | | - | | | | - | | | 1,660,868 | |
| Accretion on preferred stock discount | | | - | | | - | | | | - | | | 2,153,172 | |
| Net income available to common stockholders | | $ | 14,646,950 | | $ | 11,349,125 | | | $ | 42,405,607 | | $ | 26,339,683 | |
| | | | | | | | | | | | | | |
| Per share information: | | | | | | | | | | | | | | |
| Basic net income per common share available to common stockholders | | $ | 0.43 | | $ | 0.33 | | | $ | 1.24 | | $ | 0.78 | |
| Diluted net income per common share available to common stockholders | | $ | 0.42 | | $ | 0.33 | | | $ | 1.23 | | $ | 0.76 | |
| | | | | | | | | | | | | | |
| Weighted average shares outstanding: | | | | | | | | | | | | | | |
| Basic | | | 34,282,899 | | | 33,939,248 | | | | 34,148,562 | | | 33,879,186 | |
| Diluted | | | 34,606,567 | | | 34,523,076 | | | | 34,415,776 | | | 34,473,895 | |
| | | | | | | | | | | | | | |
| This information is preliminary and based on company data available at the time of the presentation. | | | | | | | | |
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | | | | | | | | | |
| SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| (dollars in thousands) | | September | | June | | March | | December | | September | | June | |
| | 2013 | | 2013 | | 2013 | | 2012 | | 2012 | | 2012 | |
| | | | | | | | | | | | | |
| Balance sheet data, at quarter end: | | | | | | | | | | | | | |
| Commercial real estate - mortgage loans | | $ | 1,326,838 | | 1,308,873 | | 1,278,639 | | 1,178,196 | | 1,167,136 | | 1,167,068 | |
| Consumer real estate - mortgage loans | | | 687,259 | | 697,490 | | 675,632 | | 679,927 | | 680,890 | | 687,002 | |
| Construction and land development loans | | | 319,973 | | 298,509 | | 306,433 | | 313,552 | | 312,788 | | 289,061 | |
| Commercial and industrial loans | | | 1,513,632 | | 1,504,086 | | 1,403,428 | | 1,446,577 | | 1,279,050 | | 1,227,275 | |
| Consumer and other | | | 121,600 | | 116,407 | | 108,232 | | 93,910 | | 85,300 | | 74,277 | |
| Total loans | | | 3,969,302 | | 3,925,365 | | 3,772,364 | | 3,712,162 | | 3,525,164 | | 3,444,683 | |
| Allowance for loan losses | | | (67,280 | ) | (68,695 | ) | (69,411 | ) | (69,417 | ) | (69,092 | ) | (69,614 | ) |
| Securities | | | 743,885 | | 727,889 | | 724,004 | | 707,153 | | 739,280 | | 790,493 | |
| Total assets | | | 5,391,201 | | 5,373,168 | | 5,070,935 | | 5,040,549 | | 4,871,386 | | 4,931,878 | |
| Noninterest-bearing deposits | | | 1,138,421 | | 1,098,887 | | 977,496 | | 985,689 | | 844,480 | | 806,402 | |
| Total deposits | | | 4,333,543 | | 4,096,578 | | 3,902,895 | | 4,015,188 | | 3,719,287 | | 3,709,820 | |
| Securities sold under agreements to repurchase | | | 84,032 | | 117,346 | | 129,100 | | 114,667 | | 134,787 | | 127,623 | |
| FHLB advances | | | 115,671 | | 325,762 | | 200,796 | | 75,850 | | 190,887 | | 270,995 | |
| Subordinated debt and other borrowings | | | 99,283 | | 99,908 | | 105,533 | | 106,158 | | 106,783 | | 122,476 | |
| Total stockholders' equity | | | 712,216 | | 696,569 | | 691,434 | | 679,071 | | 672,824 | | 659,287 | |
| | | | | | | | | | | | | | |
| Balance sheet data, quarterly averages: | | | | | | | | | | | | | | |
| Total loans | | $ | 3,932,218 | | 3,845,476 | | 3,681,686 | | 3,580,056 | | 3,488,736 | | 3,402,671 | |
| Securities | | | 739,625 | | 745,969 | | 714,104 | | 719,861 | | 766,547 | | 818,795 | |
| Total earning assets | | | 4,825,552 | | 4,710,534 | | 4,513,273 | | 4,493,216 | | 4,379,742 | | 4,365,715 | |
| Total assets | | | 5,313,003 | | 5,210,600 | | 4,992,018 | | 4,964,521 | | 4,860,394 | | 4,847,583 | |
| Noninterest-bearing deposits | | | 1,100,532 | | 1,012,718 | | 952,853 | | 978,366 | | 799,508 | | 755,594 | |
| Total deposits | | | 4,198,779 | | 3,963,393 | | 3,949,742 | | 3,883,423 | | 3,705,672 | | 3,636,240 | |
| Securities sold under agreements to repurchase | | | 110,123 | | 129,550 | | 130,740 | | 142,333 | | 136,918 | | 130,711 | |
| FHLB advances | | | 181,392 | | 293,581 | | 98,989 | | 124,781 | | 214,271 | | 232,606 | |
| Subordinated debt and other borrowings | | | 100,995 | | 102,573 | | 106,777 | | 108,489 | | 112,406 | | 101,872 | |
| Total stockholders' equity | | | 705,275 | | 699,559 | | 688,241 | | 680,383 | | 669,673 | | 718,841 | |
| | | | | | | | | | | | | | |
| Statement of operations data, for the three months ended: | | | | | | | | | | | | | | |
| Interest income | | $ | 48,177 | | 47,544 | | 47,156 | | 47,203 | | 46,441 | | 45,953 | |
| Interest expense | | | 3,604 | | 3,945 | | 4,398 | | 4,960 | | 5,509 | | 5,768 | |
| Net interest income | | | 44,573 | | 43,599 | | 42,758 | | 42,243 | | 40,932 | | 40,185 | |
| Provision for loan losses | | | 685 | | 2,774 | | 2,172 | | 2,488 | | 1,413 | | 634 | |
| Net interest income after provision for loan losses | | | 43,888 | | 40,825 | | 40,586 | | 39,755 | | 39,519 | | 39,551 | |
| Noninterest income | | | 11,387 | | 11,326 | | 11,902 | | 13,108 | | 10,430 | | 9,910 | |
| Noninterest expense | | | 33,323 | | 30,862 | | 32,440 | | 34,851 | | 33,578 | | 33,916 | |
| Income before taxes | | | 21,952 | | 21,289 | | 20,048 | | 18,012 | | 16,371 | | 15,545 | |
| Income tax expense | | | 7,305 | | 6,978 | | 6,600 | | 6,282 | | 5,022 | | 5,106 | |
| Preferred dividends and accretion | | | - | | - | | - | | - | | - | | 2,655 | |
Net income available to common stockholders | | $ | 14,647 | | 14,311 | | 13,448 | | 11,730 | | 11,349 | | 7,785 | |
| | | | | | | | | | | | | | |
| Profitability and other ratios: | | | | | | | | | | | | | | |
Return on avg. assets (1) | | | 1.09 | % | 1.10 | % | 1.09 | % | 0.94 | % | 0.93 | % | 0.65 | % |
Return on avg. equity (1) | | | 8.24 | % | 8.21 | % | 7.92 | % | 6.86 | % | 6.74 | % | 4.36 | % |
Return on avg. tangible equity (1) | | | 12.71 | % | 12.72 | % | 12.41 | % | 10.83 | % | 10.76 | % | 6.69 | % |
Net interest margin (1) (2) | | | 3.72 | % | 3.77 | % | 3.90 | % | 3.80 | % | 3.78 | % | 3.76 | % |
Noninterest income to total revenue (3) | | | 20.35 | % | 20.62 | % | 21.77 | % | 23.68 | % | 20.31 | % | 19.78 | % |
Noninterest income to avg. assets (1) | | | 0.85 | % | 0.87 | % | 0.97 | % | 1.05 | % | 0.85 | % | 0.82 | % |
Noninterest exp. to avg. assets (1) | | | 2.49 | % | 2.38 | % | 2.64 | % | 2.79 | % | 2.75 | % | 2.81 | % |
| Noninterest expense (excluding ORE and | | | | | | | | | | | | | | |
FHLB prepayment charges) to avg. assets (1) | | | 2.44 | % | 2.27 | % | 2.51 | % | 2.52 | % | 2.55 | % | 2.56 | % |
Efficiency ratio (4) | | | 59.55 | % | 56.19 | % | 59.35 | % | 62.96 | % | 65.38 | % | 67.70 | % |
| Avg. loans to average deposits | | | 93.65 | % | 97.02 | % | 93.21 | % | 92.19 | % | 94.15 | % | 93.58 | % |
| Securities to total assets | | | 13.80 | % | 13.55 | % | 14.28 | % | 14.03 | % | 15.18 | % | 16.03 | % |
| | | | | | | | | | | | | | |
| This information is preliminary and based on company data available at the time of the presentation. | | | | | | | |
| | | | | | | | | | | | | | |
| PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | |
| ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED | |
| | | | | | | | | | | | | | | | | | | |
| (dollars in thousands) | | Three months ended | | | Three months ended | |
| | September 30, 2013 | | | September 30, 2012 | |
| | | Average Balances | | | Interest | | | Rates/ Yields | | | Average Balances | | | Interest | | | Rates/ Yields | |
| Interest-earning assets | | | | | | | | | | | | | | | | | | |
Loans (1) | | $ | 3,932,218 | | | $ | 42,778 | | | | 4.33 | % | | $ | 3,488,736 | | | $ | 40,405 | | | | 4.62 | % |
| Securities | | | | | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 571,985 | | | | 3,538 | | | | 2.45 | % | | | 585,782 | | | | 3,974 | | | | 2.70 | % |
Tax-exempt (2) | | | 167,640 | | | | 1,601 | | | | 5.06 | % | | | 180,765 | | | | 1,622 | | | | 4.77 | % |
| Federal funds sold and other | | | 153,709 | | | | 260 | | | | 0.80 | % | | | 124,459 | | | | 440 | | | | 1.55 | % |
| Total interest-earning assets | | | 4,825,552 | | | $ | 48,177 | | | | 4.02 | % | | | 4,379,742 | | | $ | 46,441 | | | | 4.28 | % |
| Nonearning assets | | | | | | | | | | | | | | | | | | | | | | | | |
| Intangible assets | | | 248,095 | | | | | | | | | | | | 250,274 | | | | | | | | | |
| Other nonearning assets | | | 239,356 | | | | | | | | | | | | 230,378 | | | | | | | | | |
| Total assets | | $ | 5,313,003 | | | | | | | | | | | $ | 4,860,394 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest checking | | $ | 783,623 | | | $ | 400 | | | | 0.20 | % | | $ | 672,057 | | | $ | 637 | | | | 0.38 | % |
| Savings and money market | | | 1,755,037 | | | | 1,370 | | | | 0.31 | % | | | 1,606,189 | | | | 1,959 | | | | 0.49 | % |
| Time | | | 559,587 | | | | 938 | | | | 0.66 | % | | | 627,918 | | | | 1,390 | | | | 0.88 | % |
| Total interest-bearing deposits | | | 3,098,247 | | | | 2,708 | | | | 0.35 | % | | | 2,906,164 | | | | 3,986 | | | | 0.55 | % |
| Securities sold under agreements to repurchase | | | 110,123 | | | | 56 | | | | 0.20 | % | | | 136,918 | | | | 99 | | | | 0.29 | % |
| Federal Home Loan Bank advances | | | 181,392 | | | | 173 | | | | 0.38 | % | | | 214,271 | | | | 621 | | | | 1.15 | % |
| Subordinated debt and other borrowings | | | 100,995 | | | | 667 | | | | 2.62 | % | | | 112,406 | | | | 802 | | | | 2.84 | % |
| Total interest-bearing liabilities | | | 3,490,757 | | | | 3,604 | | | | 0.41 | % | | | 3,369,759 | | | | 5,508 | | | | 0.65 | % |
| Noninterest-bearing deposits | | | 1,100,532 | | | | - | | | | - | | | | 799,508 | | | | - | | | | - | |
| Total deposits and interest-bearing liabilities | | | 4,591,289 | | | $ | 3,604 | | | | 0.31 | % | | | 4,169,267 | | | $ | 5,508 | | | | 0.53 | % |
| Other liabilities | | | 16,439 | | | | | | | | | | | | 21,454 | | | | | | | | | |
| Stockholders' equity | | | 705,275 | | | | | | | | | | | | 669,673 | | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 5,313,003 | | | | | | | | | | | $ | 4,860,394 | | | | | | | | | |
| Net interest income | | | | | | $ | 44,573 | | | | | | | | | | | $ | 40,933 | | | | | |
Net interest spread (3) | | | | | | | | | | | 3.61 | % | | | | | | | | | | | 3.63 | % |
Net interest margin (4) | | | | | | | | | | | 3.72 | % | | | | | | | | | | | 3.78 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) Average balances of nonperforming loans are included in the above amounts. | | | | | | | | | | | | | | | | | |
| (2) Yields computed on tax-exempt instruments on a tax equivalent basis. | | | | | | | | | | | |
| (3) Yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. The net interest spread calculation excludes the impact of demand deposits. Had the impact of demand deposits been included, the net interest spread for the quarter ended September 30, 2013 would have been 3.71% compared to a net interest spread of 3.75% for the quarter ended September 30, 2012. | |
| (4) Net interest margin is the result of annualized net interest income calculated on a tax equivalent basis divided by average interest-earning assets for the period. | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| This information is preliminary and based on company data available at the time of the presentation. | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | |
| ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED | |
| | | | | | | | | | | | | | | | | | | |
| (dollars in thousands) | | Nine months ended | | | Nine months ended | |
| | September 30, 2013 | | | September 30, 2012 | |
| | | Average Balances | | | Interest | | | Rates/ Yields | | | Average Balances | | | Interest | | | Rates/ Yields | |
| Interest-earning assets | | | | | | | | | | | | | | | | | | |
Loans (1) | | $ | 3,820,711 | | | $ | 126,442 | | | | 4.44 | % | | $ | 3,390,838 | | | $ | 118,331 | | | | 4.67 | % |
| Securities | | | | | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 561,974 | | | | 10,860 | | | | 2.58 | % | | | 636,516 | | | | 13,357 | | | | 2.80 | % |
Tax-exempt (2) | | | 171,352 | | | | 4,741 | | | | 4.94 | % | | | 183,572 | | | | 4,973 | | | | 4.83 | % |
| Federal funds sold and other | | | 130,226 | | | | 835 | | | | 1.01 | % | | | 143,311 | | | | 1,558 | | | | 1.58 | % |
| Total interest-earning assets | | | 4,684,263 | | | $ | 142,878 | | | | 4.14 | % | | | 4,354,237 | | | $ | 138,219 | | | | 4.30 | % |
| Nonearning assets | | | | | | | | | | | | | | | | | | | | | | | | |
| Intangible assets | | | 248,488 | | | | | | | | | | | | 250,969 | | | | | | | | | |
| Other nonearning assets | | | 240,305 | | | | | | | | | | | | 237,805 | | | | | | | | | |
| Total assets | | $ | 5,173,056 | | | | | | | | | | | $ | 4,843,011 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest checking | | $ | 782,965 | | | $ | 1,537 | | | | 0.26 | % | | $ | 674,086 | | | $ | 2,243 | | | | 0.44 | % |
| Savings and money market | | | 1,656,988 | | | | 4,375 | | | | 0.35 | % | | | 1,562,930 | | | | 6,068 | | | | 0.52 | % |
| Time | | | 575,689 | | | | 3,159 | | | | 0.73 | % | | | 657,073 | | | | 4,802 | | | | 0.98 | % |
| Total interest-bearing deposits | | | 3,015,642 | | | | 9,071 | | | | 0.40 | % | | | 2,894,089 | | | | 13,113 | | | | 0.61 | % |
| Securities sold under agreements to repurchase | | | 123,395 | | | | 204 | | | | 0.22 | % | | | 132,523 | | | | 370 | | | | 0.37 | % |
| Federal Home Loan Bank advances | | | 191,622 | | | | 587 | | | | 0.41 | % | | | 228,378 | | | | 1,847 | | | | 1.08 | % |
| Subordinated debt and other borrowings | | | 103,427 | | | | 2,079 | | | | 2.69 | % | | | 104,003 | | | | 2,267 | | | | 2.91 | % |
| Total interest-bearing liabilities | | | 3,434,086 | | | | 11,941 | | | | 0.46 | % | | | 3,358,993 | | | | 17,597 | | | | 0.70 | % |
| Noninterest-bearing deposits | | | 1,022,576 | | | | - | | | | - | | | | 752,491 | | | | - | | | | - | |
| Total deposits and interest-bearing liabilities | | | 4,456,662 | | | $ | 11,941 | | | | 0.36 | % | | | 4,111,484 | | | $ | 17,597 | | | | 0.57 | % |
| Other liabilities | | | 18,639 | | | | | | | | | | | | 28,881 | | | | | | | | | |
| Stockholders' equity | | | 697,755 | | | | | | | | | | | | 702,646 | | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 5,173,056 | | | | | | | | | | | $ | 4,843,011 | | | | | | | | | |
| Net interest income | | | | | | $ | 130,937 | | | | | | | | | | | $ | 120,622 | | | | | |
Net interest spread (3) | | | | | | | | | | | 3.67 | % | | | | | | | | | | | 3.60 | % |
Net interest margin (4) | | | | | | | | | | | 3.80 | % | | | | | | | | | | | 3.76 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) Average balances of nonperforming loans are included in the above amounts. | | | | | | | | | | | | | | | | | |
| (2) Yields computed on tax-exempt instruments on a tax equivalent basis. | | | | | | | | | | | |
| (3) Yields realized on interest-earning assets less the rates paid on interest-bearing liabilities.The net interest spread calculation excludes the impact of demand deposits. Had the impact of demand deposits been included, the net interest spread for the nine months ended September 30, 2013 would have been 3.78% compared to a net interest spread of 3.73% for the nine months ended September 30, 2012. | |
| (4) Net interest margin is the result of annualized net interest income calculated on a tax equivalent basis divided by average interest-earning assets for the period. | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| This information is preliminary and based on company data available at the time of the presentation. | | | | | | | | | |
