FOR IMMEDIATE RELEASE
MEDIA CONTACT: | Nikki Klemmer, 615-743-6132 | |
FINANCIAL CONTACT: | Harold Carpenter, 615-744-3742 | |
WEBSITE: | www.pnfp.com |
PNFP REPORTS RECORD EARNINGS PER SHARE OF $0.52 FOR THIRD QUARTER
Loans increased 11.4 percent over last year
Loan, core deposit and revenue growth produce operating leverage
NASHVILLE, Tenn., Oct. 21, 2014 – Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported net income per diluted common share of $0.52 for the quarter ended Sept. 30, 2014, compared to net income per diluted common share of $0.42 for the quarter ended Sept. 30, 2013, an increase of 23.8 percent. Net income per diluted common share was $1.48 for the nine months ended Sept. 30, 2014, compared to net income per diluted common share of $1.23 for the nine months ended Sept. 30, 2013, an increase of 20.3 percent.
"Our performance in the third quarter of 2014 represents our seventh consecutive quarter of record earnings per share for the shareholders of our firm," said M. Terry Turner, Pinnacle's president and chief executive officer. "We continue to experience strong organic loan growth as well as strong growth in revenues and profitability. End of period loan balances increased by 11.4 percent year over year, while average non-interest bearing deposits increased by 19.7 percent during the same period. Our third quarter results place us in great position to achieve our 2014 growth targets."
GROWING THE CORE EARNINGS CAPACITY OF THE FIRM:
· | Loans at Sept. 30, 2014 were a record $4.421 billion, an increase of $105.7 million from June 30, 2014. Loans increased $451.9 million from Sept. 30, 2013, a year-over-year growth rate of 11.4 percent. |
· | Average balances of noninterest-bearing deposit accounts were $1.317 billion in the third quarter of 2014 and represented approximately 28.3 percent of total average deposit balances for the quarter, another record for the firm. Third quarter 2014 average noninterest-bearing deposits increased 19.7 percent over the same quarter last year. |
· | Revenues (excluding securities gains and losses) for the quarter ended Sept. 30, 2014 were a record $62.4 million, an increase of $2.6 million from $59.8 million in the second quarter of 2014. Revenues (excluding securities gains and losses) increased 8.7 percent over the same quarter last year. |
· | Return on average assets was 1.25 percent for the third quarter of 2014, compared to 1.21 percent for the second quarter of 2014 and 1.09 percent for the same quarter last year. Third quarter 2014 return on average tangible equity amounted to 13.69 percent, compared to 13.50 percent for the second quarter of 2014 and 12.71 percent for the same quarter last year. |
"We remain optimistic about our ability to achieve our 2014 end-of-year loan targets," Turner said. "Our 2014 third quarter annualized net loan growth rate of 9.8 percent exceeded our 2013 third quarter annualized net loan growth rate of 4.2 percent, providing further evidence of the achievability of our three-year growth targets for the period ending December 2014. As our focus turns to the next three-year period, we expect firms that are capable of efficient and effective core deposit acquisition will be the banking firms ultimately rewarded by investors. For that reason, we are pleased with the nearly 20 percent annual growth rate in demand deposits."
OTHER THIRD QUARTER 2014 HIGHLIGHTS:
· | Revenue growth |
o | Net interest income for the quarter ended Sept. 30, 2014 was $49.5 million, compared to $47.2 million for the second quarter of 2014 and $44.6 million for the third quarter of 2013. |
§ | The firm's net interest margin increased to 3.79 percent for the quarter ended Sept. 30, 2014, up from 3.71 percent last quarter and 3.72 percent for the quarter ended Sept. 30, 2013. |
o | Noninterest income for the quarter ended Sept. 30, 2014 was $12.9 million, compared to $12.6 million for the second quarter of 2014 and $11.4 million for the same quarter last year. |
§ | Other fees increased by $512,000 between the second and third quarters of 2014 due to several factors, including gains on other investments and increased interchange revenues. Other fees decreased $702,000 between the quarters ended Sept. 30, 2014 and 2013 primarily due to a $1.1 million gain on the sale of the government guaranteed portion of a loan in the third quarter of 2013. |
"Our net interest margin improvement was primarily attributable to higher loan yields and continued lower funding costs," said Harold R. Carpenter, Pinnacle's chief financial officer. "Average loan yields for the third quarter of 2014 increased by seven basis points compared to the second quarter of 2014, while our cost of funds decreased by one basis point. Loan yields increased due to several factors, including recognition of interest income on loans previously classified as nonaccrual and the favorable impact of certain hedging activities entered into during the second quarter of 2014. Looking to the fourth quarter, we believe our net interest income should expand based on volume increases, while our net interest margin will likely contract modestly but remain well within our previous guidance."
· | Noninterest expense |
o | Noninterest expense for the quarter ended Sept. 30, 2014 was $34.4 million, compared to $33.9 million in the second quarter of 2014 and $33.3 million in the same quarter last year. |
§ | Equipment and occupancy expense increased by $560,000 compared to the second quarter of 2014, primarily due to a $460,000 write-off of equipment resulting from the decision to outsource certain services to a third party provider. |
§ | Other real estate owned expenses (OREO) were $417,000 in the third quarter of 2014, compared to $226,000 in the second quarter of 2014 and $699,000 in the same quarter last year. |
§ | Other noninterest expense decreased by $147,000 in the third quarter of 2014 compared to the second quarter of 2014, and by $660,000 compared to the third quarter of 2013, primarily due to costs associated with the resolution of a legal matter during the third quarter of 2013. |
"Our third quarter results reflect an efficiency ratio of 55.0 percent, which is another record for the firm," Carpenter said. "Our goal is to continue to increase the operating leverage of our firm primarily through increased revenues while maintaining effective cost controls. That said, we believe that in order to remain a high performing franchise prudent management of our expense base will continue to be a requirement."
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· | Asset quality |
o | Nonperforming assets were $34.0 million at Sept. 30, 2014, compared to $28.6 million at June 30, 2014 and $35.5 million at Sept. 30, 2013. Nonperforming assets were 0.77 percent of total loans and ORE at Sept. 30, 2014, compared to 0.66 percent at June 30, 2014 and 0.89 percent at Sept. 30, 2013. |
o | The allowance for loan losses represented 1.50 percent of total loans at Sept. 30, 2014, compared to 1.55 percent at June 30, 2014 and 1.70 percent at Sept. 30, 2013. The ratio of the allowance for loan losses to nonperforming loans was 305.6 percent at Sept. 30, 2014, compared to 426.6 percent at June 30, 2014 and 336.6 percent at Sept. 30, 2013. |
§ | Net charge-offs were $1.6 million for the quarter ended Sept. 30, 2014, compared to $890,000 for the second quarter of 2014 and $2.1 million for the quarter ended Sept. 30, 2013. Annualized net charge-offs as a percentage of average loans for the quarter ended Sept. 30, 2014 were 0.14 percent, compared to 0.21 percent for the quarter ended Sept. 30, 2013. |
§ | Provision for loan losses increased from $685,000 for the third quarter of 2013 to $851,000 for the third quarter of 2014. The provision was $254,000 for the second quarter of 2014. |
"Total nonperforming loans increased by $6.0 million between Sept. 30, 2014 and June 30, 2014," Carpenter said. "At Sept. 30, 2014, approximately $15.6 million of the $21.6 million in nonperforming loans are performing pursuant to their contractual terms. We expect that our credit metrics will continue to be in the top quartile of most peer groups and provide us with additional credit leverage for the remainder of this year and next."
BOARD OF DIRECTORS DECLARES DIVIDEND
On Oct. 21, 2014, Pinnacle's Board of Directors also declared an $0.08 per share cash dividend to be paid on Nov. 28, 2014 to common shareholders of record as of the close of business on Nov. 7, 2014. The amount and timing of any future dividend payments to common shareholders will be subject to the discretion of Pinnacle's Board of Directors.
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Pinnacle will host a webcast and conference call at 8:30 a.m. (CDT) on Oct. 22, 2014 to discuss third quarter 2014 results and other matters. To access the call for audio only, please call 1-877-602-7944. For the presentation and streaming audio, please access the webcast on the investor relations page of Pinnacle's website at www.pnfp.com.
For those unable to participate in the webcast, it will be archived on the investor relations page of Pinnacle's website at www.pnfp.com for 90 days following the presentation.
Pinnacle Financial Partners provides a full range of banking, investment, trust, mortgage and insurance products and services designed for businesses and their owners and individuals interested in a comprehensive relationship with their financial institution.
The firm began operations in a single downtown Nashville location in October 2000 and has since grown to approximately $5.9 billion in assets at Sept. 30, 2014. At Sept. 30, 2014, Pinnacle is the second-largest bank holding company headquartered in Tennessee, with 29 offices in eight Middle Tennessee counties and four offices in Knoxville. Additionally, Great Place to Work® named Pinnacle one of the best workplaces in the United States on its 2014 Best Small & Medium Workplaces list published in FORTUNE magazine. The American Banker also recognized Pinnacle as the best bank to work for in the country.
Additional information concerning Pinnacle, which is included in the NASDAQ Financial-100 Index, can be accessed at www.pnfp.com.
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###
Certain of the statements in this quarterly report on Form 10-Q 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) reduced ability to attract additional financial advisors (or failure of such advisors to cause their clients to switch to Pinnacle Financial) or otherwise 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 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, (xix) the vulnerability of our network and online banking portals to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches, (xx) the possibility of increased compliance costs as a result of increased regulatory oversight and the development of additional banking products for our corporate and consumer clients, and (xxi) 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 25, 2014 and Pinnacle Financial's most recent quarterly report on Form 10-Q filed with the Securities and Exchange Commission on August 1, 2014. 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 report, whether as a result of new information, future events or otherwise.
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CONSOLIDATED BALANCE SHEETS – UNAUDITED | |||||||||
September 30, 2014 | June 30, 2014 | December 31, 2013 | |||||||
ASSETS | |||||||||
Cash and noninterest-bearing due from banks | $ | 64,743,501 | $ | 91,575,519 | $ | 79,785,004 | |||
Interest-bearing due from banks | 148,068,613 | 114,865,408 | 124,509,486 | ||||||
Federal funds sold and other | 4,757,438 | 4,667,086 | 4,644,247 | ||||||
Cash and cash equivalents | 217,569,552 | 211,108,013 | 208,938,737 | ||||||
Securities available-for-sale, at fair value | 714,920,906 | 743,528,294 | 693,456,314 | ||||||
Securities held-to-maturity (fair value of $38,112,282, $38,290,464, and | |||||||||
$38,817,467 at September 30, 2014, June 30, 2014 and | |||||||||
December 31, 2013, respectively) | 38,106,986 | 38,537,545 | 39,795,649 | ||||||
Mortgage loans held-for-sale | 19,130,001 | 24,591,553 | 12,850,339 | ||||||
Loans | 4,421,250,676 | 4,315,561,552 | 4,144,493,486 | ||||||
Less allowance for loan losses | (66,159,575 | ) | (66,888,250 | ) | (67,969,693 | ) | |||
Loans, net | 4,355,091,101 | 4,248,673,302 | 4,076,523,793 | ||||||
Premises and equipment, net | 71,551,257 | 72,534,086 | 72,649,574 | ||||||
Other investments | 33,599,454 | 33,496,695 | 33,226,195 | ||||||
Accrued interest receivable | 16,949,949 | 15,921,099 | 15,406,389 | ||||||
Goodwill | 243,533,067 | 243,550,227 | 243,651,006 | ||||||
Core deposit and other intangible assets | 3,129,236 | 3,365,399 | 3,840,750 | ||||||
Other real estate owned | 12,329,278 | 12,946,465 | 15,226,136 | ||||||
Other assets | 139,792,704 | 140,538,915 | 148,210,975 | ||||||
Total assets | $ | 5,865,703,491 | $ | 5,788,791,593 | $ | 5,563,775,857 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Deposits: | |||||||||
Noninterest-bearing | $ | 1,357,934,212 | $ | 1,324,358,420 | $ | 1,167,414,487 | |||
Interest-bearing | 860,781,126 | 900,576,170 | 884,294,802 | ||||||
Savings and money market accounts | 1,983,237,139 | 1,950,235,361 | 1,962,714,398 | ||||||
Time | 460,378,271 | 476,343,393 | 519,049,037 | ||||||
Total deposits | 4,662,330,748 | 4,651,513,344 | 4,533,472,724 | ||||||
Securities sold under agreements to repurchase | 64,772,511 | 62,272,670 | 70,465,326 | ||||||
Federal Home Loan Bank advances | 215,523,517 | 170,556,327 | 90,637,328 | ||||||
Subordinated debt and other borrowings | 96,783,292 | 97,408,292 | 98,658,292 | ||||||
Accrued interest payable | 622,908 | 661,273 | 792,703 | ||||||
Other liabilities | 43,736,364 | 41,997,702 | 46,041,823 | ||||||
Total liabilities | 5,083,769,340 | 5,024,409,608 | 4,840,068,196 | ||||||
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; | |||||||||
35,654,541 shares, 35,601,495 shares and 35,221,941 shares | |||||||||
issued and outstanding at September 30, 2014, June 30, 2014 | |||||||||
and December 31, 2013, respectively | 35,654,541 | 35,601,495 | 35,221,941 | ||||||
Additional paid-in capital | 558,070,636 | 555,428,349 | 550,212,135 | ||||||
Retained earnings | 185,496,234 | 170,155,642 | 142,298,199 | ||||||
Accumulated other comprehensive income (loss), net of taxes | 2,712,740 | 3,196,499 | (4,024,614 | ) | |||||
Stockholders' equity | 781,934,151 | 764,381,985 | 723,707,661 | ||||||
Total liabilities and stockholders' equity | $ | 5,865,703,491 | $ | 5,788,791,593 | $ | 5,563,775,857 | |||
This information is preliminary and based on company data available at the time of the presentation. |
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CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | June 30, | September 30, | September 30, | ||||||||||||
2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||
Interest income: | |||||||||||||||
Loans, including fees | $ | 47,510,761 | $ | 45,089,706 | $ | 42,778,193 | $ | 136,296,125 | $ | 126,441,555 | |||||
Securities | |||||||||||||||
Taxable | 3,469,311 | 3,628,264 | 3,538,446 | 10,817,854 | 10,860,146 | ||||||||||
Tax-exempt | 1,533,029 | 1,563,612 | 1,601,067 | 4,694,438 | 4,741,440 | ||||||||||
Federal funds sold and other | 268,455 | 282,822 | 259,536 | 828,335 | 834,748 | ||||||||||
Total interest income | 52,781,556 | 50,564,404 | 48,177,242 | 152,636,752 | 142,877,889 | ||||||||||
Interest expense: | |||||||||||||||
Deposits | 2,435,426 | 2,481,762 | 2,708,376 | 7,512,428 | 9,076,757 | ||||||||||
Securities sold under agreements to repurchase | 38,702 | 31,329 | 55,601 | 100,546 | 204,240 | ||||||||||
Federal Home Loan Bank advances and other borrowings | 770,367 | 824,912 | 840,318 | 2,352,501 | 2,666,721 | ||||||||||
Total interest expense | 3,244,495 | 3,338,003 | 3,604,295 | 9,965,475 | 11,947,718 | ||||||||||
Net interest income | 49,537,061 | 47,226,401 | 44,572,947 | 142,671,277 | 130,930,171 | ||||||||||
Provision for loan losses | 851,194 | 254,348 | 684,956 | 1,593,180 | 5,631,408 | ||||||||||
Net interest income after provision for loan losses | 48,685,867 | 46,972,053 | 43,887,991 | 141,078,097 | 125,298,763 | ||||||||||
Noninterest income: | |||||||||||||||
Service charges on deposit accounts | 2,912,617 | 2,965,644 | 2,797,342 | 8,669,229 | 7,818,452 | ||||||||||
Investment services | 2,353,118 | 2,164,410 | 1,955,652 | 6,645,362 | 5,643,690 | ||||||||||
Insurance sales commissions | 1,037,043 | 1,144,871 | 1,021,430 | 3,566,835 | 3,522,430 | ||||||||||
Gains on mortgage loans sold, net | 1,352,976 | 1,668,604 | 1,326,469 | 4,256,451 | 5,130,411 | ||||||||||
Investment gains (losses) on sales, net | 29,221 | - | (1,441,234 | ) | 29,221 | (1,466,475 | ) | ||||||||
Trust fees | 1,109,278 | 1,071,848 | 931,543 | 3,326,877 | 2,756,079 | ||||||||||
Other noninterest income | 4,094,200 | 3,582,067 | 4,796,079 | 11,724,284 | 11,210,770 | ||||||||||
Total noninterest income | 12,888,453 | 12,597,444 | 11,387,281 | 38,218,259 | 34,615,357 | ||||||||||
Noninterest expense: | |||||||||||||||
Salaries and employee benefits | 21,721,663 | 21,772,469 | 21,009,680 | 65,244,092 | 61,152,789 | ||||||||||
Equipment and occupancy | 6,477,076 | 5,917,354 | 5,412,865 | 18,103,458 | 15,730,074 | ||||||||||
Other real estate expense | 417,197 | 226,006 | 699,211 | 1,294,355 | 2,810,779 | ||||||||||
Marketing and other business development | 945,805 | 1,064,990 | 720,866 | 2,919,696 | 2,498,708 | ||||||||||
Postage and supplies | 569,707 | 544,194 | 581,433 | 1,674,515 | 1,690,588 | ||||||||||
Amortization of intangibles | 236,163 | 237,676 | 246,675 | 711,514 | 1,015,848 | ||||||||||
Other noninterest expense | 3,991,944 | 4,139,239 | 4,652,161 | 11,959,708 | 11,725,844 | ||||||||||
Total noninterest expense | 34,359,555 | 33,901,928 | 33,322,891 | 101,907,338 | 96,624,630 | ||||||||||
Income before income taxes | 27,214,765 | 25,667,569 | 21,952,381 | 77,389,018 | 63,289,490 | ||||||||||
Income tax expense | 9,017,943 | 8,497,589 | 7,305,431 | 25,655,089 | 20,883,883 | ||||||||||
Net income | $ | 18,196,822 | $ | 17,169,980 | $ | 14,646,950 | $ | 51,733,929 | $ | 42,405,607 | |||||
Per share information: | |||||||||||||||
Basic net income per common share | $ | 0.52 | $ | 0.49 | $ | 0.43 | $ | 1.49 | $ | 1.24 | |||||
Diluted net income per common share | $ | 0.52 | $ | 0.49 | $ | 0.42 | $ | 1.48 | $ | 1.23 | |||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 34,762,206 | 34,697,888 | 34,282,899 | 34,688,064 | 34,148,562 | ||||||||||
Diluted | 35,155,224 | 35,081,702 | 34,606,567 | 35,069,764 | 34,415,776 | ||||||||||
This information is preliminary and based on company data available at the time of the presentation |
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SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | |||||||||||||
September | June | March | December | September | June | ||||||||
(dollars in thousands) | 2014 | 2014 | 2014 | 2013 | 2013 | 2013 | |||||||
Balance sheet data, at quarter end: | |||||||||||||
Commercial real estate - mortgage loans | $ | 1,478,869 | 1,457,335 | 1,456,172 | 1,383,435 | 1,326,838 | 1,308,873 | ||||||
Consumer real estate - mortgage loans | 706,801 | 698,528 | 703,592 | 695,616 | 687,259 | 697,490 | |||||||
Construction and land development loans | 322,090 | 292,875 | 294,055 | 316,191 | 319,973 | 298,509 | |||||||
Commercial and industrial loans | 1,724,086 | 1,697,634 | 1,568,937 | 1,605,547 | 1,513,632 | 1,504,086 | |||||||
Consumer and other | 189,405 | 169,190 | 158,931 | 143,704 | 121,600 | 116,407 | |||||||
Total loans | 4,421,251 | 4,315,562 | 4,181,687 | 4,144,493 | 3,969,302 | 3,925,365 | |||||||
Allowance for loan losses | (66,160 | ) | (66,888 | ) | (67,524 | ) | (67,970 | ) | (67,280 | ) | (68,695 | ) | |
Securities | 753,028 | 782,066 | 774,134 | 733,252 | 743,885 | 727,889 | |||||||
Total assets | 5,865,703 | 5,788,792 | 5,600,933 | 5,563,776 | 5,391,201 | 5,373,168 | |||||||
Noninterest-bearing deposits | 1,357,934 | 1,324,358 | 1,180,202 | 1,167,414 | 1,138,421 | 1,098,887 | |||||||
Total deposits | 4,662,331 | 4,651,513 | 4,500,577 | 4,533,473 | 4,333,543 | 4,096,578 | |||||||
Securities sold under agreements to repurchase | 64,773 | 62,273 | 68,093 | 70,465 | 84,032 | 117,346 | |||||||
FHLB advances | 215,524 | 170,556 | 150,604 | 90,637 | 115,671 | 325,762 | |||||||
Subordinated debt and other borrowings | 96,783 | 97,408 | 98,033 | 98,658 | 99,283 | 99,908 | |||||||
Total stockholders' equity | 781,934 | 764,382 | 742,497 | 723,708 | 712,216 | 696,569 | |||||||
Balance sheet data, quarterly averages: | |||||||||||||
Total loans | $ | 4,358,473 | 4,251,900 | 4,130,289 | 3,981,214 | 3,932,218 | 3,845,476 | ||||||
Securities | 767,895 | 782,436 | 748,539 | 731,651 | 739,625 | 745,969 | |||||||
Total earning assets | 5,264,591 | 5,187,589 | 5,023,692 | 4,903,233 | 4,825,552 | 4,710,534 | |||||||
Total assets | 5,752,776 | 5,673,615 | 5,514,031 | 5,388,371 | 5,313,003 | 5,210,600 | |||||||
Noninterest-bearing deposits | 1,317,091 | 1,202,740 | 1,128,743 | 1,179,340 | 1,100,532 | 1,012,718 | |||||||
Total deposits | 4,655,047 | 4,518,963 | 4,509,493 | 4,407,806 | 4,198,779 | 3,963,393 | |||||||
Securities sold under agreements to repurchase | 66,429 | 59,888 | 62,500 | 85,096 | 110,123 | 129,550 | |||||||
FHLB advances | 135,920 | 224,432 | 83,787 | 42,012 | 181,392 | 293,581 | |||||||
Subordinated debt and other borrowings | 100,404 | 99,015 | 98,651 | 100,030 | 100,995 | 102,573 | |||||||
Total stockholders' equity | 774,032 | 757,089 | 740,743 | 722,919 | 705,275 | 699,559 | |||||||
Statement of operations data, for the three months ended: | |||||||||||||
Interest income | $ | 52,782 | 50,564 | 49,291 | 48,405 | 48,177 | 47,544 | ||||||
Interest expense | 3,245 | 3,338 | 3,383 | 3,436 | 3,604 | 3,945 | |||||||
Net interest income | 49,537 | 47,226 | 45,908 | 44,969 | 44,573 | 43,599 | |||||||
Provision for loan losses | 851 | 254 | 488 | 2,225 | 685 | 2,774 | |||||||
Net interest income after provision for loan losses | 48,686 | 46,972 | 45,420 | 42,744 | 43,888 | 40,825 | |||||||
Noninterest income | 12,888 | 12,598 | 12,732 | 12,488 | 11,387 | 11,326 | |||||||
Noninterest expense | 34,360 | 33,902 | 33,646 | 32,637 | 33,323 | 30,862 | |||||||
Income before taxes | 27,215 | 25,668 | 24,506 | 22,596 | 21,952 | 21,289 | |||||||
Income tax expense | 9,018 | 8,498 | 8,140 | 7,274 | 7,305 | 6,978 | |||||||
$ | 18,197 | 17,170 | 16,367 | 15,321 | 14,647 | 14,311 | |||||||
Profitability and other ratios: | |||||||||||||
Return on avg. assets (1) | 1.25 | % | 1.21 | % | 1.20 | % | 1.13 | % | 1.09 | % | 1.10 | % | |
Return on avg. equity (1) | 9.33 | % | 9.10 | % | 8.96 | % | 8.41 | % | 8.24 | % | 8.21 | % | |
Return on avg. tangible common equity (1) | 13.69 | % | 13.50 | % | 13.45 | % | 12.79 | % | 12.71 | % | 12.72 | % | |
Dividend payout ratio (18) | 17.58 | % | 18.29 | % | 19.16 | % | 20.38 | % | - | - | |||
Net interest margin (1) (2) | 3.79 | % | 3.71 | % | 3.76 | % | 3.70 | % | 3.72 | % | 3.77 | % | |
Noninterest income to total revenue (3) | 20.65 | % | 21.06 | % | 21.72 | % | 21.73 | % | 20.35 | % | 20.62 | % | |
Noninterest income to avg. assets (1) | 0.89 | % | 0.89 | % | 0.94 | % | 0.92 | % | 0.85 | % | 0.87 | % | |
Noninterest exp. to avg. assets (1) | 2.37 | % | 2.40 | % | 2.47 | % | 2.40 | % | 2.49 | % | 2.38 | % | |
Noninterest expense (excluding ORE and FHLB | |||||||||||||
restructuring charges) to avg. assets (1) | 2.34 | % | 2.38 | % | 2.43 | % | 2.38 | % | 2.44 | % | 2.27 | % | |
Efficiency ratio (4) | 55.04 | % | 56.67 | % | 57.38 | % | 56.80 | % | 59.55 | % | 56.19 | % | |
Avg. loans to average deposits | 93.63 | % | 94.09 | % | 91.59 | % | 90.32 | % | 93.65 | % | 97.02 | % | |
Securities to total assets | 12.84 | % | 13.51 | % | 13.82 | % | 13.18 | % | 13.80 | % | 13.55 | % | |
This information is preliminary and based on company data available at the time of the presentation. |
8
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, 2014 | September 30, 2013 | |||||||||||||||
Average Balances | Interest | Rates/ Yields | Average Balances | Interest | Rates/ Yields | |||||||||||
Interest-earning assets | ||||||||||||||||
Loans (1) | $ | 4,358,473 | $ | 47,511 | 4.34 | % | $ | 3,932,218 | $ | 42,778 | 4.33 | % | ||||
Securities | ||||||||||||||||
Taxable | 598,713 | 3,469 | 2.30 | % | 571,985 | 3,538 | 2.45 | % | ||||||||
Tax-exempt (2) | 169,182 | 1,533 | 4.80 | % | 167,640 | 1,601 | 5.06 | % | ||||||||
Federal funds sold and other | 138,223 | 269 | 0.92 | % | 153,709 | 260 | 0.80 | % | ||||||||
Total interest-earning assets | 5,264,591 | $ | 52,782 | 4.03 | % | 4,825,552 | $ | 48,177 | 4.02 | % | ||||||
Nonearning assets | ||||||||||||||||
Intangible assets | 246,821 | 248,095 | ||||||||||||||
Other nonearning assets | 241,364 | 239,356 | ||||||||||||||
Total assets | $ | 5,752,776 | $ | 5,313,003 | ||||||||||||
Interest-bearing liabilities | ||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||
Interest checking | $ | 871,620 | $ | 366 | 0.17 | % | $ | 783,623 | $ | 400 | 0.20 | % | ||||
Savings and money market | 1,997,900 | 1,427 | 0.28 | % | 1,755,037 | 1,370 | 0.31 | % | ||||||||
Time | 468,436 | 643 | 0.54 | % | 559,587 | 938 | 0.66 | % | ||||||||
Total interest-bearing deposits | 3,337,956 | 2,436 | 0.29 | % | 3,098,247 | 2,708 | 0.35 | % | ||||||||
Securities sold under agreements to repurchase | 66,429 | 39 | 0.23 | % | 110,123 | 56 | 0.20 | % | ||||||||
Federal Home Loan Bank advances | 135,920 | 150 | 0.44 | % | 181,392 | 173 | 0.38 | % | ||||||||
Subordinated debt and other borrowings | 100,404 | 620 | 2.45 | % | 100,995 | 667 | 2.62 | % | ||||||||
Total interest-bearing liabilities | 3,640,709 | 3,245 | 0.35 | % | 3,490,757 | 3,604 | 0.41 | % | ||||||||
Noninterest-bearing deposits | 1,317,091 | - | - | 1,100,532 | - | - | ||||||||||
Total deposits and interest-bearing liabilities | 4,957,800 | $ | 3,245 | 0.26 | % | 4,591,289 | $ | 3,604 | 0.31 | % | ||||||
Other liabilities | 20,944 | 16,439 | ||||||||||||||
Stockholders' equity | 774,032 | 705,275 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 5,752,776 | $ | 5,313,003 | ||||||||||||
Net interest income | $ | 49,537 | $ | 44,573 | ||||||||||||
Net interest spread (3) | 3.68 | % | 3.61 | % | ||||||||||||
Net interest margin (4) | 3.79 | % | 3.72 | % | ||||||||||||
(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, 2014 would have been 3.77% compared to a net interest spread of 3.71% for the quarter ended September 30, 2013. | ||||||||||||||||
(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. |
9
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED | ||||||||||||||||
(dollars in thousands) | Nine Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2014 | September 30, 2013 | |||||||||||||||
Average Balances | Interest | Rates/ Yields | Average Balances | Interest | Rates/ Yields | |||||||||||
Interest-earning assets | ||||||||||||||||
Loans (1) | $ | 4,247,723 | $ | 136,296 | 4.30 | % | $ | 3,820,711 | $ | 126,442 | 4.44 | % | ||||
Securities | ||||||||||||||||
Taxable | 594,069 | 10,818 | 2.43 | % | 561,974 | 10,860 | 2.58 | % | ||||||||
Tax-exempt (2) | 172,292 | 4,694 | 4.86 | % | 171,352 | 4,741 | 4.94 | % | ||||||||
Federal funds sold and other | 145,422 | 828 | 0.90 | % | 130,226 | 835 | 1.01 | % | ||||||||
Total interest-earning assets | 5,159,506 | $ | 152,636 | 4.01 | % | 4,684,263 | $ | 142,878 | 4.14 | % | ||||||
Nonearning assets | ||||||||||||||||
Intangible assets | 247,086 | 248,488 | ||||||||||||||
Other nonearning assets | 241,094 | 240,305 | ||||||||||||||
Total assets | $ | 5,647,686 | $ | 5,173,056 | ||||||||||||
Interest-bearing liabilities | ||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||
Interest checking | $ | 901,330 | $ | 1,186 | 0.18 | % | $ | 782,965 | $ | 1,537 | 0.26 | % | ||||
Savings and money market | 1,954,549 | 4,245 | 0.29 | % | 1,656,988 | 4,381 | 0.35 | % | ||||||||
Time | 488,941 | 2,081 | 0.57 | % | 575,689 | 3,159 | 0.73 | % | ||||||||
Total interest-bearing deposits | 3,344,820 | 7,512 | 0.30 | % | 3,015,642 | 9,077 | 0.40 | % | ||||||||
Securities sold under agreements to repurchase | 62,954 | 101 | 0.21 | % | 123,395 | 204 | 0.22 | % | ||||||||
Federal Home Loan Bank advances | 148,237 | 460 | 0.42 | % | 191,622 | 587 | 0.41 | % | ||||||||
Subordinated debt and other borrowings | 99,363 | 1,892 | 2.55 | % | 103,427 | 2,080 | 2.69 | % | ||||||||
Total interest-bearing liabilities | 3,655,374 | 9,965 | 0.36 | % | 3,434,086 | 11,948 | 0.46 | % | ||||||||
Noninterest-bearing deposits | 1,216,881 | - | - | 1,022,576 | - | - | ||||||||||
Total deposits and interest-bearing liabilities | 4,872,255 | $ | 9,965 | 0.27 | % | 4,456,662 | $ | 11,948 | 0.36 | % | ||||||
Other liabilities | 18,018 | 18,639 | ||||||||||||||
Stockholders' equity | 757,413 | 697,755 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 5,647,686 | $ | 5,173,056 | ||||||||||||
Net interest income | $ | 142,671 | $ | 130,930 | ||||||||||||
Net interest spread (3) | 3.65 | % | 3.67 | % | ||||||||||||
Net interest margin (4) | 3.75 | % | 3.80 | % | ||||||||||||
(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 nine months ended September 30, 2014 would have been 3.74% compared to a net interest spread of 3.78% for the nine months ended September 30, 2013. | ||||||||||||||||
(4) Net interest margin is the result of 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. |
10
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | ||||||||||||||
(dollars in thousands) | September | June | March | December | September | June | ||||||||
2014 | 2014 | 2014 | 2013 | 2013 | 2013 | |||||||||
Asset quality information and ratios: | ||||||||||||||
Nonperforming assets: | ||||||||||||||
Nonaccrual loans | $ | 21,652 | 15,678 | 15,606 | 18,183 | 19,989 | 20,561 | |||||||
Other real estate (ORE) | 12,329 | 12,946 | 15,038 | 15,226 | 15,522 | 15,992 | ||||||||
Total nonperforming assets | $ | 33,981 | 28,624 | 30,644 | 33,409 | 35,511 | 36,553 | |||||||
Past due loans over 90 days and still | ||||||||||||||
accruing interest | $ | 83 | 649 | 7,944 | 3,057 | - | 747 | |||||||
Troubled debt restructurings (5) | $ | 7,606 | 7,552 | 15,108 | 19,647 | 19,661 | 20,427 | |||||||
Net loan charge-offs | $ | 1,580 | 890 | 934 | 1,535 | 2,100 | 3,491 | |||||||
Allowance for loan losses to nonaccrual loans | 305.6 | % | 426.6 | % | 432.7 | % | 373.8 | % | 336.6 | % | 334.1 | % | ||
As a percentage of total loans: | ||||||||||||||
Past due accruing loans over 30 days | 0.32 | % | 0.45 | % | 0.43 | % | 0.39 | % | 0.33 | % | 0.39 | % | ||
Potential problem loans (6) | 1.98 | % | 1.79 | % | 2.01 | % | 1.51 | % | 1.80 | % | 2.11 | % | ||
Allowance for loan losses | 1.50 | % | 1.55 | % | 1.61 | % | 1.64 | % | 1.70 | % | 1.75 | % | ||
Nonperforming assets to total loans and ORE | 0.77 | % | 0.66 | % | 0.73 | % | 0.80 | % | 0.89 | % | 0.93 | % | ||
Nonperforming assets to total assets | 0.58 | % | 0.49 | % | 0.55 | % | 0.60 | % | 0.66 | % | 0.68 | % | ||
Classified asset ratio (Pinnacle Bank) (8) | 20.0 | % | 18.1 | % | 21.2 | % | 18.5 | % | 20.6 | % | 23.3 | % | ||
Annualized net loan charge-offs year-to-date | ||||||||||||||
to avg. loans (7) | 0.11 | % | 0.09 | % | 0.09 | % | 0.24 | % | 0.27 | % | 0.31 | % | ||
Wtd. avg. commercial loan internal risk ratings (6) | 4.5 | 4.5 | 4.5 | 4.5 | 4.5 | 4.5 | ||||||||
Interest rates and yields: | ||||||||||||||
Loans | 4.34 | % | 4.27 | % | 4.30 | % | 4.28 | % | 4.33 | % | 4.41 | % | ||
Securities | 2.85 | % | 2.93 | % | 3.17 | % | 3.16 | % | 3.04 | % | 3.03 | % | ||
Total earning assets | 4.03 | % | 3.97 | % | 4.04 | % | 3.98 | % | 4.02 | % | 4.10 | % | ||
Total deposits, including non-interest bearing | 0.21 | % | 0.22 | % | 0.23 | % | 0.24 | % | 0.26 | % | 0.30 | % | ||
Securities sold under agreements to repurchase | 0.23 | % | 0.21 | % | 0.20 | % | 0.16 | % | 0.20 | % | 0.22 | % | ||
FHLB advances | 0.44 | % | 0.33 | % | 0.59 | % | 0.97 | % | 0.38 | % | 0.31 | % | ||
Subordinated debt and other borrowings | 2.45 | % | 2.58 | % | 2.61 | % | 2.60 | % | 2.62 | % | 2.72 | % | ||
Total deposits and interest-bearing liabilities | 0.26 | % | 0.27 | % | 0.29 | % | 0.29 | % | 0.31 | % | 0.35 | % | ||
Pinnacle Financial Partners capital ratios (8): | ||||||||||||||
Stockholders' equity to total assets | 13.3 | % | 13.2 | % | 13.3 | % | 13.0 | % | 13.2 | % | 13.0 | % | ||
Leverage | 11.2 | % | 11.0 | % | 11.0 | % | 10.9 | % | 10.8 | % | 10.7 | % | ||
Tier one risk-based | 12.2 | % | 12.1 | % | 12.2 | % | 11.8 | % | 12.0 | % | 11.7 | % | ||
Total risk-based | 13.4 | % | 13.4 | % | 13.5 | % | 13.0 | % | 13.2 | % | 12.9 | % | ||
Tier one common equity to risk-weighted assets | 10.6 | % | 10.5 | % | 10.5 | % | 10.1 | % | 10.2 | % | 9.9 | % | ||
Tangible common equity to tangible assets | 9.5 | % | 9.3 | % | 9.3 | % | 9.0 | % | 9.0 | % | 8.8 | % | ||
Pinnacle Bank ratios: | ||||||||||||||
Leverage | 10.6 | % | 10.5 | % | 10.5 | % | 10.5 | % | 10.5 | % | 10.5 | % | ||
Tier one risk-based | 11.5 | % | 11.5 | % | 11.7 | % | 11.3 | % | 11.6 | % | 11.5 | % | ||
Total risk-based | 12.8 | % | 12.8 | % | 12.9 | % | 12.6 | % | 12.9 | % | 12.7 | % | ||
This information is preliminary and based on company data available at the time of the presentation. |
11
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | ||||||||||||||
(dollars in thousands, except per share data) | September | June | March | December | September | June | ||||||||
2014 | 2014 | 2014 | 2013 | 2013 | 2013 | |||||||||
Per share data: | ||||||||||||||
Earnings – basic | $ | 0.52 | 0.49 | 0.47 | 0.45 | 0.43 | 0.42 | |||||||
Earnings – diluted | $ | 0.52 | 0.49 | 0.47 | 0.44 | 0.42 | 0.42 | |||||||
Common dividends per share | $ | 0.08 | 0.08 | 0.08 | 0.08 | - | - | |||||||
Book value per common share at quarter end (9) | $ | 21.93 | 21.47 | 20.88 | 20.55 | 20.27 | 19.86 | |||||||
Tangible common equity per common share | $ | 15.02 | 14.53 | 13.93 | 13.52 | 13.22 | 12.78 | |||||||
Weighted avg. common shares – basic | 34,762,206 | 34,697,888 | 34,602,337 | 34,355,691 | 34,282,899 | 34,172,274 | ||||||||
Weighted avg. common shares – diluted | 35,155,224 | 35,081,702 | 34,966,600 | 34,765,424 | 34,606,567 | 34,431,054 | ||||||||
Common shares outstanding | 35,654,541 | 35,601,495 | 35,567,268 | 35,221,941 | 35,133,733 | 35,073,763 | ||||||||
Investor information: | ||||||||||||||
Closing sales price | $ | 36.10 | 39.48 | 37.49 | 32.53 | 29.81 | 25.71 | |||||||
High closing sales price during quarter | $ | 39.75 | 39.48 | 38.64 | 33.25 | 29.99 | 26.17 | |||||||
Low closing sales price during quarter | $ | 35.21 | 33.46 | 31.02 | 29.67 | 26.56 | 21.68 | |||||||
Other information: | ||||||||||||||
Gains on mortgage loans sold: | ||||||||||||||
Mortgage loan sales: | ||||||||||||||
Gross loans sold | $ | 96,050 | 83,421 | 61,290 | 70,194 | 105,817 | 123,181 | |||||||
Gross fees (10) | $ | 2,256 | 2,461 | 1,780 | 1,729 | 2,294 | 3,146 | |||||||
Gross fees as a percentage of loans originated | 2.35 | % | 2.95 | % | 2.90 | % | 2.46 | % | 2.17 | % | 2.55 | % | ||
Net gain on mortgage loans sold | $ | 1,353 | 1,669 | 1,235 | 1,113 | 1,326 | 1,949 | |||||||
Investment gains (losses) on sales, net (17) | $ | 29 | - | - | - | (1,441 | ) | (25 | ) | |||||
Brokerage account assets, at quarter-end (11) | $ | 1,658,237 | 1,680,619 | 1,611,232 | 1,560,349 | 1,445,461 | 1,387,172 | |||||||
Trust account managed assets, at quarter-end | $ | 720,071 | 687,772 | 613,440 | 605,324 | 576,190 | 630,322 | |||||||
Core deposits (12) | $ | 4,260,627 | 4,245,745 | 4,087,477 | 4,100,037 | 3,903,000 | 3,771,424 | |||||||
Core deposits to total funding (12) | 84.6 | % | 85.2 | % | 84.8 | % | 85.5 | % | 84.3 | % | 81.3 | % | ||
Risk-weighted assets | $ | 5,049,592 | 4,924,884 | 4,730,907 | 4,803,942 | 4,557,124 | 4,532,735 | |||||||
Total assets per full-time equivalent employee | $ | 7,744 | 7,734 | 7,528 | 7,408 | 7,305 | 7,335 | |||||||
Annualized revenues per full-time equivalent employee | $ | 327.0 | 320.6 | 319.7 | 303.5 | 300.8 | 300.8 | |||||||
Annualized expenses per full-time equivalent employee | $ | 180.0 | 181.7 | 183.4 | 172.4 | 179.1 | 169.0 | |||||||
Number of employees (full-time equivalent) | 757.5 | 748.5 | 744.0 | 751.0 | 738.0 | 732.5 | ||||||||
Associate retention rate (13) | 93.5 | % | 93.8 | % | 95.6 | % | 94.4 | % | 93.9 | % | 93.0 | % | ||
Selected economic information (in thousands) (14): | ||||||||||||||
Nashville MSA nonfarm employment - August 2014 | 838.0 | 829.8 | 827.1 | 817.3 | 815.1 | 817.1 | ||||||||
Knoxville MSA nonfarm employment - August 2014 | 342.4 | 342.2 | 338.0 | 334.2 | 335.6 | 337.9 | ||||||||
Nashville MSA unemployment - August 2014 | 5.8 | % | 5.6 | % | 5.4 | % | 5.9 | % | 6.5 | % | 6.6 | % | ||
Knoxville MSA unemployment - August 2014 | 6.1 | % | 5.9 | % | 5.8 | % | 6.3 | % | 7.0 | % | 6.9 | % | ||
Nashville residential median home price - September 2014 | $ | 211.4 | 222.0 | 195.0 | 198.8 | 197.9 | 205.9 | |||||||
Nashville inventory of residential homes for sale - September 2014 (16) | 9.9 | 10.6 | 9.4 | 8.2 | 10.2 | 10.6 | ||||||||
This information is preliminary and based on company data available at the time of the presentation. |
12
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | |||||||||||||
September | June | March | December | September | June | ||||||||
(dollars in thousands, except per share data) | 2014 | 2014 | 2014 | 2013 | 2013 | 2013 | |||||||
Tangible assets: | |||||||||||||
Total assets | $ | 5,865,703 | 5,788,792 | 5,600,933 | 5,563,776 | 5,391,201 | 5,373,168 | ||||||
Less: Goodwill | (243,533 | ) | (243,550 | ) | (243,568 | ) | (243,651 | ) | (243,808 | ) | (243,900 | ) | |
Core deposit and other intangible assets | (3,129 | ) | (3,365 | ) | (3,603 | ) | (3,841 | ) | (4,087 | ) | (4,334 | ) | |
Net tangible assets | $ | 5,619,041 | 5,541,877 | 5,353,762 | 5,316,284 | 5,143,306 | 5,124,934 | ||||||
Tangible equity: | |||||||||||||
Total stockholders' equity | $ | 781,934 | 764,382 | 742,497 | 723,708 | 712,216 | 696,569 | ||||||
Less: Goodwill | (243,533 | ) | (243,550 | ) | (243,568 | ) | (243,651 | ) | (243,808 | ) | (243,900 | ) | |
Core deposit and other intangible assets | (3,129 | ) | (3,365 | ) | (3,603 | ) | (3,841 | ) | (4,087 | ) | (4,334 | ) | |
Net tangible common equity | $ | 535,272 | 517,467 | 495,326 | 476,216 | 464,321 | 448,335 | ||||||
Ratio of tangible common equity to tangible assets | 9.53 | % | 9.34 | % | 9.25 | % | 8.96 | % | 9.03 | % | 8.75 | % | |
Average tangible equity: | |||||||||||||
Average stockholders' equity | $ | 774,032 | 757,089 | 740,743 | 722,919 | 705,275 | 699,559 | ||||||
Less: Average goodwill | (243,544 | ) | (243,559 | ) | (243,610 | ) | (243,729 | ) | (243,854 | ) | (243,956 | ) | |
Core deposit and other intangible assets | (3,278 | ) | (3,484 | ) | (3,722 | ) | (3,964 | ) | (4,211 | ) | (4,458 | ) | |
Net average tangible common equity | $ | 527,210 | 510,046 | 493,411 | 475,226 | 457,210 | 451,145 | ||||||
Return on average tangible common equity (1) | 13.69 | % | 13.50 | % | 13.45 | % | 12.79 | % | 12.71 | % | 12.72 | % | |
For the three months ended | |||||||||||||
September | June | March | December | September | June | ||||||||
2014 | 2014 | 2014 | 2013 | 2013 | 2013 | ||||||||
Net interest income | $ | 49,537 | 47,226 | 45,908 | 44,969 | 44,573 | 43,599 | ||||||
Noninterest income | 12,888 | 12,598 | 12,732 | 12,488 | 11,387 | 11,326 | |||||||
Less: Investment (gains) losses on sales, net | (29 | ) | - | - | - | 1,441 | 25 | ||||||
Noninterest income excluding investment | |||||||||||||
(gains) losses on sales, net | 12,859 | 12,598 | 12,732 | 12,488 | 12,828 | 12,122 | |||||||
Total revenues excluding the impact of investment | |||||||||||||
(gains) losses on sales, net | 62,396 | 59,824 | 58,644 | 57,457 | 57,401 | 55,721 | |||||||
Noninterest expense | 34,360 | 33,902 | 33,646 | 32,637 | 33,323 | 30,862 | |||||||
Less: Other real estate expense | 417 | 226 | 651 | 302 | 699 | 1,391 | |||||||
Noninterest expense excluding the impact of | |||||||||||||
other real estate expense | 33,943 | 33,676 | 32,995 | 32,335 | 32,624 | 29,471 | |||||||
Adjusted pre-tax pre-provision income (15) | $ | 28,453 | 26,148 | 25,645 | 25,122 | 24,777 | 26,250 | ||||||
Efficiency Ratio (4) | 55.0 | % | 56.7 | % | 57.4 | % | 56.8 | % | 59.5 | % | 56.2 | % | |
Total average assets | $ | 5,752,776 | 5,673,615 | 5,514,031 | 5,388,371 | 5,313,003 | 5,210,600 | ||||||
Noninterest expense (excluding ORE expense) to avg. assets (1) | 2.34 | % | 2.38 | % | 2.43 | % | 2.38 | % | 2.44 | % | 2.27 | % | |
This information is preliminary and based on company data available at the time of the presentation. | |||||||||||||
13
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED |
1. Ratios are presented on an annualized basis. |
2. Net interest margin is the result of net interest income on a tax equivalent basis divided by average interest earning assets. |
3. Total revenue is equal to the sum of net interest income and noninterest income. |
4. Efficiency ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income. |
5. Troubled debt restructurings include loans where the company, as a result of the borrower's financial difficulties, has granted a credit concession to the borrower (i.e., interest only payments for a significant period of time, extending the maturity of the loan, etc.). All of these loans continue to accrue interest at the contractual rate. |
6. Average risk ratings are based on an internal loan review system which assigns a numeric value of 1 to 10 to all loans to commercial entities based on their underlying risk characteristics as of the end of each quarter. A "1" risk rating is assigned to credits that exhibit Excellent risk characteristics, "2" exhibit Very Good risk characteristics, "3" Good, "4" Satisfactory, "5" Acceptable or Average, "6" Watch List, "7" Criticized, "8" Classified or Substandard, "9" Doubtful and "10" Loss (which are charged-off immediately). Additionally, loans rated "8" or worse that are not nonperforming or restructured loans are considered potential problem loans. Generally, consumer loans are not subjected to internal risk ratings. |
7. Annualized net loan charge-offs to average loans ratios are computed by annualizing year-to-date net loan charge-offs and dividing the result by average loans for the year-to-date period. |
8. Capital ratios are defined as follows: |
Equity to total assets – End of period total stockholders' equity as a percentage of end of period assets. |
Tangible common equity to total assets - End of period total stockholders' equity less end of period goodwill, core deposit and other intangibles 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. |
Classified asset - Classified assets as a percentage of Tier 1 capital plus allowance for loan losses. |
Tier one common equity to risk weighted assets - Tier 1 capital (pursuant to risk-based capital guidelines) less the amount of any preferred stock or subordinated indebtedness that is considered |
as a component of tier 1 capital as a percentage of total risk-weighted assets. |
9. Book value per share computed by dividing total stockholders' equity less preferred stock and common stock warrants by common shares outstanding. |
10. Amounts are included in the statement of operations in "Gains on mortgage loans sold, net", net of commissions paid on such amounts. |
11. At fair value, based on information obtained from Pinnacle's third party broker/dealer for non-FDIC insured financial products and services. |
12. Core deposits include all transaction deposit accounts, money market and savings accounts and all certificates of deposit issued in a denomination of less than $250,000. |
The ratio noted above represents total core deposits divided by total funding, which includes total deposits, FHLB advances, securities sold under agreements to repurchase, subordinated indebtedness and all other interest-bearing liabilities. |
13. 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. |
14. Employment and unemployment data is from BERC- MTSU & Bureau of Labor Statistics. Labor force data is seasonally adjusted. The most recent quarter data presented is as of the most recent month that data is available as of the release date. Historical data is subject to update by the BERC- MTSU & Bureau of Labor Statistics. Historical data is presented based on the most recently reported data available by the BERC- MTSU & Bureau of Labor Statistics. The Nashville home data is from the Greater Nashville Association of Realtors. |
15. Adjusted pre-tax, pre-provision income excludes the impact of investment gains and losses on sales and impairments, net and non-credit related loan losses as well as other real estate owned expenses and FHLB restructuring charges. |
16. Represents month's supply of homes currently listed with MLS based on current sales activity in the Nashville MSA. |
17. Represents investment gains (losses) on sales and impairments, net occurring as a result of both credit losses and losses incurred as the result of a change in management's intention to sell a bond prior to the recovery of its amortized cost basis. |
18. The dividend payout ratio is calculated as the sum of the annualized dividend rate divided by the trailing 12-months diluted earnings per share as of the dividend declaration date. |
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