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FOR IMMEDIATE RELEASE
MEDIA CONTACT: | Nikki Klemmer, 615-743-6132 | |
FINANCIAL CONTACT: | Harold Carpenter, 615-744-3742 | |
WEBSITE: | www.pnfp.com |
PNFP REPORTS DILUTED EARNINGS PER SHARE OF $0.62 FOR 3Q 2015
Excluding merger-related charges, diluted EPS was a record $0.66 for 3Q 2015
NASHVILLE, TN, Oct. 20, 2015 – Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported net income per diluted common share of $0.62 for the quarter ended Sept. 30, 2015, compared to net income per diluted common share of $0.52 for the quarter ended Sept. 30, 2014, an increase of 19.2 percent. Net income per diluted common share was $1.86 for the nine months ended Sept. 30, 2015, compared to net income per diluted common share of $1.48 for the nine months ended Sept. 30, 2014, an increase of 25.7 percent.
Excluding pre-tax merger-related charges of $2.2 million and $2.3 million for the three months and nine months ended Sept. 30, 2015, respectively, net income per diluted common share was $0.66 for the three months ended Sept. 30, 2015, or a 26.9 percent increase over the same period last year, and $1.90 for the nine months ended Sept. 30, 2015, or a 28.4 percent increase over the nine-month period ended Sept. 30, 2014.
Pinnacle completed the acquisitions of CapitalMark Bank & Trust (CapitalMark) on July 31, 2015 and Magna Bank (Magna) on Sept. 1, 2015. On July 31, 2015, CapitalMark had total assets of approximately $1.2 billion, gross loans of approximately $879.8 million, total deposits of approximately $971.1 million and operated four bank offices in or near Chattanooga and Knoxville, TN. On Sept. 1, 2015, Magna had total assets of approximately $569.3 million, gross loans of approximately $498.8 million, total deposits of approximately $464.1 million and operated five bank offices serving the Memphis, TN market. The financial statements accompanying this press release and the financial condition and results of operations described herein reflect the impact of the acquisitions beginning on the respective acquisition dates and are subject to future refinements to the firm's purchase accounting adjustments.
"The third quarter was an exceptional one for our firm in terms of ongoing execution of our growth plans, resulting in record earnings growth," said M. Terry Turner, Pinnacle's president and chief executive officer. "With the accelerated closing of both the CapitalMark and Magna mergers during the quarter, our associates are now focused on the successful completion of the upcoming technology conversions and the complete integration of these two very valuable franchises into our firm."
GROWING THE CORE EARNINGS CAPACITY OF THE FIRM:
· | Revenues (excluding securities gains and losses) for the quarter ended Sept. 30, 2015 were a record $83.5 million, an increase of $12.2 million from $71.3 million in the second quarter of 2015. Revenues (excluding securities gains and losses) increased 33.8 percent over the same quarter last year. The firm estimated that revenues from CapitalMark and Magna amounted to approximately $10.7 million during the third quarter. |
· | Loans at Sept. 30, 2015 were a record $6.336 billion, an increase of $1.506 billion from June 30, 2015 and $1.915 billion from Sept. 30, 2014, reflecting year-over-year growth of 43.3 percent. |
o | Approximately $1.3 billion in loan balances at Sept. 30, 2015 were attributable to the former CapitalMark and Magna franchises. Loans attributable to these franchises grew approximately $258.3 million, or 19.0 percent, from loan balances reported as of Sept. 30, 2014. |
o | Excluding the impact of loans attributable to the CapitalMark and Magna franchises, legacy Pinnacle loans grew during the third quarter approximately $173.4 million, which was a 14.4 percent annualized growth rate. |
· | Average balances of noninterest-bearing deposit accounts were $1.690 billion in the third quarter of 2015 and represented approximately 28.6 percent of total average deposit balances for the quarter. |
o | Third quarter 2015 average noninterest-bearing deposits increased 28.3 percent over the same quarter last year. |
o | Approximately $142.0 million of the $252.3 million increase in average balances of noninterest bearing deposit accounts from June 30, 2015 is attributable to the former CapitalMark and Magna franchises. |
o | Excluding the impact of average non-interest bearing deposit accounts attributable to CapitalMark and Magna, average non-interest bearing deposit accounts for the legacy Pinnacle franchise grew $110.3 million during the third quarter, or 30.7 percent in annualized growth. |
"The rapid rate of growth in loan and core deposit volumes in the legacy Pinnacle footprint is likely not a surprise to anyone," Turner said. "However, the equally rapid rate of growth in loans and core deposits in our newly acquired franchises during this period of merger and integration is a testament to our new Pinnacle associates and the quality of the franchises they have built. Additionally, our ongoing recruitment efforts this year in Nashville and Knoxville have added 19 revenue-producing associates as we continue to invest in future growth. This level of recruitment is significantly higher than that of the past few years."
FOCUSING ON PROFITABILITY:
· | The firm's net interest margin was 3.66 percent for the quarter ended Sept. 30, 2015, compared to 3.65 percent last quarter and 3.79 percent for the quarter ended Sept. 30, 2014. |
· | Return on average assets was 1.27 percent for the third quarter of 2015, compared to 1.44 percent for the second quarter of 2015 and 1.25 percent for the same quarter last year. Excluding merger-related charges, return on average assets was 1.35 percent for the third quarter of 2015. |
· | Third quarter 2015 return on average tangible equity amounted to 14.04 percent, compared to 15.39 percent for the second quarter of 2015 and 13.69 percent for the same quarter last year. Excluding merger-related charges, return on average tangible equity amounted to 14.84 percent for the third quarter of 2015. |
"We are very pleased with our operating metrics this quarter and continue to believe our metrics compare favorably to most peer groups," said Harold R. Carpenter, Pinnacle's chief financial officer. "We are now in the best banking markets in Tennessee, and even though pricing remains very competitive, we still continue to see significant opportunities to take market share and grow volumes at acceptable spreads."
OTHER THIRD QUARTER 2015 HIGHLIGHTS:
· | Revenue growth |
o | Net interest income for the quarter ended Sept. 30, 2015 increased to a record $62.1 million, compared to $51.8 million for the second quarter of 2015 and $49.5 million for the third quarter of 2014. Net interest income for the nine-month period ended Sept. 30, 2015 increased 25.3 percent as compared to the same period in 2014. |
o | Noninterest income for the quarter ended Sept. 30, 2015 increased to a record $21.4 million, compared to $20.0 million for the second quarter of 2015 and $12.9 million for the same quarter last year. Noninterest income for the nine months ended Sept. 30, 2015 increased 56.8 percent as compared to the same period in 2014. |
§ | Wealth management revenues, which include investment, trust and insurance services, were $5.1 million for the quarter ended Sept. 30, 2015, compared to $4.7 million for the quarter ended June 30, 2015. Wealth management revenues were $4.5 million for the same quarter last year, resulting in a year-over-year growth rate of 12.6 percent. |
§ | Income from the firm's investment in Bankers Healthcare Group (BHG) was $5.3 million for the quarter ended Sept. 30, 2015, compared to $4.3 million for the quarter ended June 30, 2015. The firm's investment in BHG contributed slightly less than $0.07 in diluted earnings per share in both the second and third quarters of 2015. |
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"We continue to see growth in bottom-line earnings during this extended rate cycle," said Carpenter. "Our emphasis on floating rate credit, as we approach what many believe to be the onset of rising short-term rates, should benefit us in future periods. Fortunately, we operate in robust markets that provide us opportunities to expand our loan volumes and create ongoing revenue growth even during this challenging rate environment. We are also excited about our market extensions into Chattanooga and Memphis and look forward to the additional revenue opportunities that we believe are available to us in those markets."
· | Noninterest expense |
o | Noninterest expense for the quarter ended Sept. 30, 2015 was $45.1 million, compared to $36.7 million in the second quarter of 2015 and $34.4 million in the same quarter last year. The firm estimated that CapitalMark's and Magna's expense base contributed approximately $6.5 million to the firm's quarterly expense amount. |
§ | Salaries and employee benefits were $27.7 million in the third quarter of 2015, compared to $23.8 million in the second quarter of 2015 and $21.7 million in the same quarter last year. Approximately $3.1 million of the salaries and employee benefits during the third quarter of 2015 were attributable to CapitalMark and Magna. |
§ | Merger-related expenses were approximately $2.3 million during the nine months ended Sept. 30, 2015. The firm will continue to incur merger-related expenses in future periods primarily due to increased training costs and the conversions of technology systems, which are scheduled to occur in the fourth quarter of 2015 for Magna and the first quarter of 2016 for CapitalMark. |
§ | The efficiency ratio for the third quarter of 2015 increased to 54.1 percent and the ratio of noninterest expenses to average assets increased to 2.38 percent, including merger related charges. |
§ | The firm's headcount increased to 1,073.5 FTE's at Sept. 30, 2015, including 103 and 141 FTE's from our acquisitions of CapitalMark and Magna, respectively. The firm has identified approximately 57 positions that are slated for elimination after the technology conversions. |
"Excluding merger and other charges, our efficiency ratio for the third quarter was 52.2 percent, and the ratio of expenses to average assets declined to 2.30 percent, now at our long-term target range," Carpenter said. "We are very pleased with these results, especially after the increased hiring we have experienced this year. We believe that we should increase our operating leverage still further in future periods, especially after the technology conversions for CapitalMark and Magna take place."
· | Asset quality |
o | Nonperforming assets increased to $35.1 million at Sept. 30, 2015, compared to $24.3 million at June 30, 2015 and $34.0 million at Sept. 30, 2014. Nonperforming assets increased to 0.55 percent of total loans and ORE at Sept. 30, 2015, compared to 0.50 percent at June 30, 2015 and 0.77 percent at Sept. 30, 2014. Approximately, $14.3 million of nonperforming assets at Sept. 30, 2015, were attributable to assets acquired from CapitalMark and Magna. |
o | The allowance for loan losses represented 1.01 percent of total loans at Sept. 30, 2015, compared to 1.36 percent at June 30, 2015 and 1.50 percent at Sept. 30, 2014. The decrease is attributable to the inclusion of CapitalMark and Magna loans, which were recorded at their fair value upon acquisition date, and improvements in overall loan quality for the legacy Pinnacle portfolio.The ratio of the allowance for loan losses to nonperforming loans was 210.5 percent at Sept. 30, 2015, compared to 373.6 percent at June 30, 2015 and 305.6 percent at Sept. 30, 2014. |
§ | Net charge-offs were $4.0 million for the quarter ended Sept. 30, 2015, compared to $1.9 million for the second quarter of 2015 and $1.6 million for the quarter ended Sept. 30, 2014. Annualized net charge-offs as a percentage of average loans for the quarter ended Sept. 30, 2015 were 0.20 percent, compared to 0.11 percent for the quarter ended Sept. 30, 2014. |
§ | Provision for loan losses increased to $2.2 million in the third quarter of 2015 from $1.2 million in the second quarter of 2015 and $851,000 in the third quarter of 2014. |
BOARD OF DIRECTORS DECLARES DIVIDEND
On Oct. 20, 2015, Pinnacle's Board of Directors also declared a $0.12 per share cash dividend to be paid on Nov. 27, 2015 to common shareholders of record as of the close of business on Nov. 6, 2015. The amount and timing of any future dividend payments to common shareholders will be subject to the discretion of Pinnacle's Board of Directors.
WEBCAST AND CONFERENCE CALL INFORMATION
Pinnacle will host a webcast and conference call at 8:30 a.m. (CDT) on Oct. 21, 2015 to discuss third quarter 2015 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. Pinnacle's focus begins in recruiting top financial professionals. 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 third best bank to work for in the country.
The firm began operations in a single downtown Nashville location in October 2000 and has since grown to more than $8.5 billion in assets at Sept. 30, 2015. As the second-largest bank holding company headquartered in Tennessee, Pinnacle operates in the state's four largest markets, Nashville, Memphis, Knoxville and Chattanooga, as well as several surrounding counties.
Additional information concerning Pinnacle, which is included in the NASDAQ Financial-100 Index, can be accessed at www.pnfp.com.
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FORWARD-LOOKING STATEMENTS
Certain of the statements in this press 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," "hope," "pursue," "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 maintain the historical growth of 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, the Knoxville MSA, the Chattanooga, TN-GA MSA and the Memphis, TN-MS-AR 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 the Nashville, Knoxville, Chattanooga or Memphis MSAs; (xii) a merger or acquisition; (xiii) risks of expansion into new geographic or product markets, like the recent expansion into the Chattanooga and Memphis MSAs; (xiv) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including intangible assets; (xv) reduced ability to attract additional financial advisors (or failure of such advisors to cause their clients to switch to Pinnacle Financial), to retain financial advisors (including those at CapitalMark Bank & Trust and Magna Bank) or otherwise to attract customers from other financial institutions; (xvi) further deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xvii) inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies and required capital maintenance levels; (xviii) risks associated with litigation, including the applicability of insurance coverage; (xix) the risk that the cost savings and any revenue synergies from the recent mergers with CapitalMark and Magna may not be realized or take longer than anticipated to be realized; (xx) disruption from the CapitalMark and Magna mergers with customers, suppliers or employee relationships; (xxi) the risk of successful integration of CapitalMark's and Magna's business with ours; (xxii) the amount of the costs, fees, expenses and charges related to the CapitalMark and Magna mergers; (xxiii) reputational risk and the reaction of Pinnacle Financial's, CapitalMark's and Magna's customers to the recent CapitalMark and Magna mergers; (xxiv) the risk that the integration of CapitalMark's and Magna's operations with Pinnacle Financial's will be materially delayed or will be more costly or difficult than expected; (xxv) approval of the declaration of any dividend by Pinnacle Financial's board of directors; (xxvi) 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; (xxvii) the possibility of increased compliance costs as a result of increased regulatory oversight, including oversight of companies in which Pinnacle Financial has significant investments, and the development of additional banking products for our corporate and consumer clients; (xxviii) the risks associated with our being a minority investor in Bankers Healthcare Group, LLC, including the risk that the owners of a majority of the equity interests in Bankers Healthcare Group decide to sell the company; and (xxix) 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 herein and in Pinnacle Financial's most recent annual report on Form 10-K filed with the Securities and Exchange Commission on February 25, 2015 and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission on May 8, 2015 and August 7, 2015. 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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PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED BALANCE SHEETS – UNAUDITED | ||||||||||||
September 30, 2015 | June 30, 2015 | December 31, 2014 | ||||||||||
ASSETS | ||||||||||||
Cash and noninterest-bearing due from banks | $ | 68,595,726 | $ | 66,487,191 | $ | 48,741,692 | ||||||
Interest-bearing due from banks | 245,289,355 | 201,761,829 | 134,176,054 | |||||||||
Federal funds sold and other | 13,153,196 | 4,698,433 | 4,989,764 | |||||||||
Cash and cash equivalents | 327,038,277 | 272,947,453 | 187,907,510 | |||||||||
Securities available-for-sale, at fair value | 972,295,754 | 806,221,152 | 732,054,785 | |||||||||
Securities held-to-maturity (fair value of $31,850,119, $33,830,072 and $38,788,870 | ||||||||||||
at September 30, 2015, June 30, 2015 and December 31, 2014, respectively) | 31,698,000 | 33,914,863 | 38,675,527 | |||||||||
Residential mortgage loans held-for-sale | 47,671,890 | 31,542,696 | 14,038,914 | |||||||||
Commercial loans held-for-sale | 20,236,426 | - | - | |||||||||
Loans | 6,335,988,628 | 4,830,353,621 | 4,590,026,505 | |||||||||
Less allowance for loan losses | (63,758,390 | ) | (65,572,050 | ) | (67,358,639 | ) | ||||||
Loans, net | 6,272,230,238 | 4,764,781,571 | 4,522,667,866 | |||||||||
Premises and equipment, net | 81,527,013 | 73,633,237 | 71,576,016 | |||||||||
Equity method investment | 81,763,986 | 82,892,986 | - | |||||||||
Accrued interest receivables | 21,510,180 | 17,125,955 | 16,988,407 | |||||||||
Goodwill | 425,150,723 | 243,290,816 | 243,529,010 | |||||||||
Core deposit and other intangible assets | 11,640,802 | 2,438,245 | 2,893,072 | |||||||||
Other real estate owned | 4,772,567 | 6,792,503 | 11,186,414 | |||||||||
Other assets | 247,262,954 | 180,962,299 | 176,730,276 | |||||||||
Total assets | $ | 8,544,798,810 | $ | 6,516,543,776 | $ | 6,018,247,797 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
Deposits: | ||||||||||||
Noninterest-bearing | $ | 1,876,910,141 | $ | 1,473,086,196 | $ | 1,321,053,083 | ||||||
Interest-bearing | 1,293,247,497 | 1,071,433,689 | 1,005,450,690 | |||||||||
Savings and money market accounts | 2,691,218,826 | 2,031,801,876 | 2,024,957,383 | |||||||||
Time | 739,302,052 | 417,289,165 | 431,143,756 | |||||||||
Total deposits | 6,600,678,516 | 4,993,610,926 | 4,782,604,912 | |||||||||
Securities sold under agreements to repurchase | 68,077,412 | 61,548,547 | 93,994,730 | |||||||||
Federal Home Loan Bank advances | 545,329,689 | 445,345,050 | 195,476,384 | |||||||||
Subordinated debt and other borrowings | 142,476,000 | 133,908,292 | 96,158,292 | |||||||||
Accrued interest payable | 1,703,146 | 637,036 | 631,682 | |||||||||
Other liabilities | 52,308,493 | 40,103,864 | 46,688,416 | |||||||||
Total liabilities | 7,410,573,256 | 5,675,153,715 | 5,215,554,416 | |||||||||
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; | ||||||||||||
40,802,904 shares, 35,977,987 shares and 35,732,483 shares | ||||||||||||
issued and outstanding at September 30, 2015, June 30, 2015 | ||||||||||||
and December 31, 2014, respectively | 40,802,904 | 35,977,987 | 35,732,483 | |||||||||
Additional paid-in capital | 835,279,986 | 567,945,383 | 561,431,449 | |||||||||
Retained earnings | 256,648,129 | 237,243,866 | 201,371,081 | |||||||||
Accumulated other comprehensive income, net of taxes | 1,494,535 | 222,825 | 4,158,368 | |||||||||
Stockholders' equity | 1,134,225,554 | 841,390,061 | 802,693,381 | |||||||||
Total liabilities and stockholders' equity | $ | 8,544,798,810 | $ | 6,516,543,776 | $ | 6,018,247,797 | ||||||
This information is preliminary and based on company data available at the time of the presentation. | ||||||||||||
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PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED | ||||||||||||||||||||
Three Months Ended | Nine months ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | |||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Interest income: | ||||||||||||||||||||
Loans, including fees | $ | 61,453,541 | $ | 50,325,643 | $ | 47,510,761 | $ | 161,245,890 | $ | 136,296,125 | ||||||||||
Securities | ||||||||||||||||||||
Taxable | 3,953,948 | 3,460,243 | 3,469,311 | 10,858,790 | 10,817,854 | |||||||||||||||
Tax-exempt | 1,416,954 | 1,400,479 | 1,533,029 | 4,300,740 | 4,694,438 | |||||||||||||||
Federal funds sold and other | 367,671 | 316,286 | 268,455 | 967,935 | 828,335 | |||||||||||||||
Total interest income | 67,192,114 | 55,502,651 | 52,781,556 | 177,373,355 | 152,636,752 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 3,587,048 | 2,592,476 | 2,435,426 | 8,610,266 | 7,512,428 | |||||||||||||||
Securities sold under agreements to repurchase | 39,437 | 29,371 | 38,702 | 99,725 | 100,546 | |||||||||||||||
Federal Home Loan Bank advances and other borrowings | 1,506,528 | 1,050,119 | 770,367 | 3,505,199 | 2,352,501 | |||||||||||||||
Total interest expense | 5,133,013 | 3,671,966 | 3,244,495 | 12,215,190 | 9,965,475 | |||||||||||||||
Net interest income | 62,059,101 | 51,830,685 | 49,537,061 | 165,158,165 | 142,671,277 | |||||||||||||||
Provision for loan losses | 2,227,937 | 1,186,116 | 851,194 | 3,729,144 | 1,593,180 | |||||||||||||||
Net interest income after provision for loan losses | 59,831,164 | 50,644,569 | 48,685,867 | 161,429,021 | 141,078,097 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
Service charges on deposit accounts | 3,258,058 | 3,075,655 | 2,912,617 | 9,246,262 | 8,669,229 | |||||||||||||||
Investment services | 2,525,980 | 2,399,054 | 2,353,118 | 7,184,474 | 6,645,362 | |||||||||||||||
Insurance sales commissions | 1,102,859 | 1,105,783 | 1,037,043 | 3,721,260 | 3,566,835 | |||||||||||||||
Gains on mortgage loans sold, net | 1,894,731 | 1,652,111 | 1,352,976 | 5,488,096 | 4,256,451 | |||||||||||||||
Investment gains on sales, net | - | 556,014 | 29,221 | 562,017 | 29,221 | |||||||||||||||
Trust fees | 1,437,039 | 1,230,415 | 1,109,278 | 3,979,439 | 3,326,877 | |||||||||||||||
Income from equity method investment | 5,285,000 | 4,266,154 | - | 12,752,456 | - | |||||||||||||||
Other noninterest income | 5,906,747 | 5,733,592 | 4,094,200 | 16,988,490 | �� | 11,724,284 | ||||||||||||||
Total noninterest income | 21,410,414 | 20,018,778 | 12,888,453 | 59,922,494 | 38,218,259 | |||||||||||||||
Noninterest expense: | ||||||||||||||||||||
Salaries and employee benefits | 27,745,643 | 23,774,558 | 21,721,663 | 75,051,061 | 65,244,092 | |||||||||||||||
Equipment and occupancy | 6,932,758 | 5,877,971 | 6,477,076 | 18,856,952 | 18,103,458 | |||||||||||||||
Other real estate, net | (686,071 | ) | (114,567 | ) | 417,197 | (405,350 | ) | 1,294,355 | ||||||||||||
Marketing and other business development | 1,252,270 | 1,186,165 | 945,805 | 3,398,185 | 2,919,696 | |||||||||||||||
Postage and supplies | 795,403 | 731,219 | 569,707 | 2,175,873 | 1,674,515 | |||||||||||||||
Amortization of intangibles | 602,545 | 227,413 | 236,163 | 1,057,372 | 711,514 | |||||||||||||||
Merger related expenses | 2,248,569 | 59,053 | - | 2,307,622 | - | |||||||||||||||
Other noninterest expense | 6,215,863 | 5,005,513 | 3,991,944 | 16,243,612 | 11,959,708 | |||||||||||||||
Total noninterest expense | 45,106,980 | 36,747,325 | 34,359,555 | 118,685,327 | 101,907,338 | |||||||||||||||
Income before income taxes | 36,134,598 | 33,916,022 | 27,214,765 | 102,666,188 | 77,389,018 | |||||||||||||||
Income tax expense | 11,985,846 | 11,252,191 | 9,017,943 | 34,010,894 | 25,655,089 | |||||||||||||||
Net income | $ | 24,148,752 | $ | 22,663,831 | $ | 18,196,822 | $ | 68,655,294 | $ | 51,733,929 | ||||||||||
Per share information: | ||||||||||||||||||||
Basic net income per common share | $ | 0.64 | $ | 0.65 | $ | 0.52 | $ | 1.91 | $ | 1.49 | ||||||||||
Diluted net income per common share | $ | 0.62 | $ | 0.64 | $ | 0.52 | $ | 1.86 | $ | 1.48 | ||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 37,828,324 | 35,128,856 | 34,762,206 | 36,009,658 | 34,688,064 | |||||||||||||||
Diluted | 38,792,783 | 35,554,683 | 35,155,224 | 36,944,169 | 35,069,764 | |||||||||||||||
This information is preliminary and based on company data available at the time of the presentation. |
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PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | ||||||||||||||||||||||||
(dollars in thousands) | September | June | March | December | September | June | ||||||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | 2014 | |||||||||||||||||||
Balance sheet data, at quarter end: | ||||||||||||||||||||||||
Commercial real estate - mortgage loans | $ | 2,192,151 | 1,671,729 | 1,560,683 | 1,544,091 | 1,478,869 | 1,457,335 | |||||||||||||||||
Consumer real estate - mortgage loans | 1,044,276 | 740,641 | 723,907 | 721,158 | 706,801 | 698,528 | ||||||||||||||||||
Construction and land development loans | 674,926 | 372,004 | 324,462 | 322,466 | 322,090 | 292,875 | ||||||||||||||||||
Commercial and industrial loans | 2,178,535 | 1,819,600 | 1,810,818 | 1,784,729 | 1,724,086 | 1,697,634 | ||||||||||||||||||
Consumer and other | 246,101 | 226,380 | 225,402 | 217,583 | 189,405 | 169,190 | ||||||||||||||||||
Total loans | 6,335,989 | 4,830,354 | 4,645,272 | 4,590,027 | 4,421,251 | 4,315,562 | ||||||||||||||||||
Allowance for loan losses | (63,758 | ) | (65,572 | ) | (66,242 | ) | (67,359 | ) | (66,160 | ) | (66,888 | ) | ||||||||||||
Securities | 1,003,994 | 840,136 | 808,294 | 770,730 | 753,028 | 782,066 | ||||||||||||||||||
Total assets | 8,544,799 | 6,516,544 | 6,314,346 | 6,018,248 | 5,865,703 | 5,788,792 | ||||||||||||||||||
Noninterest-bearing deposits | 1,876,910 | 1,473,086 | 1,424,971 | 1,321,053 | 1,357,934 | 1,324,358 | ||||||||||||||||||
Total deposits | 6,600,679 | 4,993,611 | 4,789,309 | 4,782,605 | 4,662,331 | 4,651,513 | ||||||||||||||||||
Securities sold under agreements to repurchase | 68,077 | 61,549 | 68,053 | 93,995 | 64,773 | 62,273 | ||||||||||||||||||
FHLB advances | 545,330 | 445,345 | 455,444 | 195,476 | 215,524 | 170,556 | ||||||||||||||||||
Subordinated debt and other borrowings | 142,476 | 133,908 | 135,533 | 96,158 | 96,783 | 97,408 | ||||||||||||||||||
Total stockholders' equity | 1,134,226 | 841,390 | 824,151 | 802,693 | 781,934 | 764,382 | ||||||||||||||||||
Balance sheet data, quarterly averages: | ||||||||||||||||||||||||
Total loans | $ | 5,690,246 | 4,736,818 | 4,624,952 | 4,436,411 | 4,358,473 | 4,251,900 | |||||||||||||||||
Securities | 925,506 | 836,425 | 788,550 | 760,328 | 767,895 | 782,436 | ||||||||||||||||||
Total earning assets | 6,844,784 | 5,764,514 | 5,581,508 | 5,382,479 | 5,264,591 | 5,187,589 | ||||||||||||||||||
Total assets | 7,514,633 | 6,319,712 | 6,102,523 | 5,855,421 | 5,752,776 | 5,673,615 | ||||||||||||||||||
Noninterest-bearing deposits | 1,689,599 | 1,437,276 | 1,342,603 | 1,373,745 | 1,317,091 | 1,202,740 | ||||||||||||||||||
Total deposits | 5,898,369 | 4,884,506 | 4,791,944 | 4,758,402 | 4,655,047 | 4,518,963 | ||||||||||||||||||
Securities sold under agreements to repurchase | 71,329 | 61,355 | 66,505 | 82,970 | 66,429 | 59,888 | ||||||||||||||||||
FHLB advances | 393,825 | 388,963 | 290,016 | 95,221 | 135,920 | 224,432 | ||||||||||||||||||
Subordinated debt and other borrowings | 147,619 | 135,884 | 121,033 | 96,722 | 100,404 | 99,015 | ||||||||||||||||||
Total stockholders' equity | 986,325 | 836,791 | 815,706 | 796,338 | 774,032 | 757,089 | ||||||||||||||||||
Statement of operations data, for the three months ended: | ||||||||||||||||||||||||
Interest income | $ | 67,192 | 55,503 | 54,679 | 53,533 | 52,782 | 50,564 | |||||||||||||||||
Interest expense | 5,133 | 3,672 | 3,410 | 3,220 | 3,245 | 3,338 | ||||||||||||||||||
Net interest income | 62,059 | 51,831 | 51,269 | 50,313 | 49,537 | 47,226 | ||||||||||||||||||
Provision for loan losses | 2,228 | 1,186 | 315 | 2,041 | 851 | 254 | ||||||||||||||||||
Net interest income after provision for loan losses | 59,831 | 50,645 | 50,954 | 48,272 | 48,686 | 46,972 | ||||||||||||||||||
Noninterest income | 21,410 | 20,019 | 18,493 | 14,384 | 12,888 | 12,598 | ||||||||||||||||||
Noninterest expense | 45,107 | 36,747 | 36,830 | 34,391 | 34,360 | 33,902 | ||||||||||||||||||
Income before taxes | 36,134 | 33,917 | 32,617 | 28,264 | 27,215 | 25,668 | ||||||||||||||||||
Income tax expense | 11,985 | 11,252 | 10,774 | 9,527 | 9,018 | 8,498 | ||||||||||||||||||
Net income | $ | 24,149 | 22,665 | 21,843 | 18,737 | 18,197 | 17,170 | |||||||||||||||||
Profitability and other ratios: | ||||||||||||||||||||||||
Return on avg. assets (1) | 1.27 | % | 1.44 | % | 1.45 | % | 1.27 | % | 1.25 | % | 1.21 | % | ||||||||||||
Return on avg. equity (1) | 9.71 | % | 10.86 | % | 10.86 | % | 9.33 | % | 9.33 | % | 9.10 | % | ||||||||||||
Return on avg. tangible common equity (1) | 14.04 | % | 15.39 | % | 15.56 | % | 13.52 | % | 13.69 | % | 13.50 | % | ||||||||||||
Dividend payout ratio (18) | 19.92 | % | 20.78 | % | 22.22 | % | 16.67 | % | 17.58 | % | 18.29 | % | ||||||||||||
Net interest margin (1) (2) | 3.66 | % | 3.65 | % | 3.78 | % | 3.76 | % | 3.79 | % | 3.71 | % | ||||||||||||
Noninterest income to total revenue (3) | 25.65 | % | 27.86 | % | 26.51 | % | 22.23 | % | 20.65 | % | 21.06 | % | ||||||||||||
Noninterest income to avg. assets (1) | 1.13 | % | 1.27 | % | 1.23 | % | 0.97 | % | 0.89 | % | 0.89 | % | ||||||||||||
Noninterest exp. to avg. assets (1) | 2.38 | % | 2.33 | % | 2.45 | % | 2.33 | % | 2.37 | % | 2.40 | % | ||||||||||||
Noninterest expense (excluding ORE, FHLB | ||||||||||||||||||||||||
prepayment charges, and merger related expense) | ||||||||||||||||||||||||
to avg. assets (1) | 2.30 | % | 2.31 | % | 2.42 | % | 2.37 | % | 2.34 | % | 2.38 | % | ||||||||||||
Efficiency ratio (4) | 54.04 | % | 51.14 | % | 52.79 | % | 53.16 | % | 55.04 | % | 56.67 | % | ||||||||||||
Avg. loans to average deposits | 96.47 | % | 96.98 | % | 96.52 | % | 93.23 | % | 93.63 | % | 94.09 | % | ||||||||||||
Securities to total assets | 11.75 | % | 12.89 | % | 12.80 | % | 12.81 | % | 12.84 | % | 13.51 | % | ||||||||||||
This information is preliminary and based on company data available at the time of the presentation. |
6
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, 2015 | September 30, 2014 | |||||||||||||||||||||||
Average Balances | Interest | Rates/ Yields | Average Balances | Interest | Rates/ Yields | |||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||
Loans (1) | $ | 5,690,246 | $ | 61,454 | 4.33 | % | $ | 4,358,473 | $ | 47,511 | 4.34 | % | ||||||||||||
Securities | ||||||||||||||||||||||||
Taxable | 758,148 | 3,954 | 2.07 | % | 598,713 | 3,469 | 2.30 | % | ||||||||||||||||
Tax-exempt (2) | 167,358 | 1,417 | 4.49 | % | 169,182 | 1,533 | 4.80 | % | ||||||||||||||||
Federal funds sold and other | 229,032 | 368 | 0.64 | % | 138,223 | 269 | 0.92 | % | ||||||||||||||||
Total interest-earning assets | 6,844,784 | 67,193 | 3.93 | % | 5,264,591 | $ | 52,782 | 4.03 | % | |||||||||||||||
Nonearning assets | ||||||||||||||||||||||||
Intangible assets | 325,053 | 246,821 | ||||||||||||||||||||||
Other nonearning assets | 344,796 | 241,364 | ||||||||||||||||||||||
Total assets | $ | 7,514,633 | $ | 5,752,776 | ||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
Interest checking | $ | 1,169,502 | $ | 656 | 0.22 | % | $ | 871,620 | $ | 366 | 0.17 | % | ||||||||||||
Savings and money market | 2,427,660 | 2,129 | 0.35 | % | 1,997,900 | 1,427 | 0.28 | % | ||||||||||||||||
Time | 611,608 | 802 | 0.52 | % | 468,436 | 643 | 0.54 | % | ||||||||||||||||
Total interest-bearing deposits | 4,208,770 | 3,587 | 0.34 | % | 3,337,956 | 2,436 | 0.29 | % | ||||||||||||||||
Securities sold under agreements to repurchase | 71,329 | 39 | 0.22 | % | 66,429 | 39 | 0.23 | % | ||||||||||||||||
Federal Home Loan Bank advances | 393,825 | 331 | 0.33 | % | 135,920 | 150 | 0.44 | % | ||||||||||||||||
Subordinated debt and other borrowings | 147,619 | 1,177 | 3.16 | % | 100,404 | 620 | 2.45 | % | ||||||||||||||||
Total interest-bearing liabilities | 4,821,543 | 5,134 | 0.42 | % | 3,640,709 | 3,245 | 0.35 | % | ||||||||||||||||
Noninterest-bearing deposits | 1,689,599 | - | - | 1,317,091 | - | - | ||||||||||||||||||
Total deposits and interest-bearing liabilities | 6,511,142 | $ | 5,134 | 0.31 | % | 4,957,800 | $ | 3,245 | 0.26 | % | ||||||||||||||
Other liabilities | 17,166 | 20,944 | ||||||||||||||||||||||
Stockholders' equity | 986,325 | 774,032 | ||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 7,514,633 | $ | 5,752,776 | ||||||||||||||||||||
Net interest income | $ | 62,059 | $ | 49,537 | ||||||||||||||||||||
Net interest spread (3) | 3.51 | % | 3.68 | % | ||||||||||||||||||||
Net interest margin (4) | 3.66 | % | 3.79 | % | ||||||||||||||||||||
(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, 2015 would have been 3.62% compared to a net interest spread of 3.77% for the quarter ended September 30, 2014. | ||||||||||||||||||||||||
(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. |
7
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, 2015 | September 30, 2014 | |||||||||||||||||||||||
Average Balances | Interest | Rates/ Yields | Average Balances | Interest | Rates/ Yields | |||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||
Loans (1) | $ | 5,036,614 | $ | 161,246 | 4.33 | % | $ | 4,247,723 | $ | 136,296 | 4.30 | % | ||||||||||||
Securities | ||||||||||||||||||||||||
Taxable | 689,105 | 10,859 | 2.11 | % | 594,069 | 10,818 | 2.43 | % | ||||||||||||||||
Tax-exempt (2) | 161,558 | 4,301 | 4.76 | % | 172,292 | 4,694 | 4.86 | % | ||||||||||||||||
Federal funds sold and other | 198,470 | 968 | 0.65 | % | 145,422 | 828 | 0.90 | % | ||||||||||||||||
Total interest-earning assets | 6,085,747 | 177,374 | 3.94 | % | 5,159,506 | $ | 152,636 | 4.01 | % | |||||||||||||||
Nonearning assets | ||||||||||||||||||||||||
Intangible assets | 272,732 | 247,086 | ||||||||||||||||||||||
Other nonearning assets | 292,317 | 241,094 | ||||||||||||||||||||||
Total assets | $ | 6,650,796 | $ | 5,647,686 | ||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
Interest checking | $ | 1,091,866 | $ | 1,661 | 0.20 | % | $ | 901,330 | $ | 1,186 | 0.17 | % | ||||||||||||
Savings and money market | 2,126,761 | 5,027 | 0.32 | % | 1,954,549 | 4,245 | 0.28 | % | ||||||||||||||||
Time | 485,935 | 1,922 | 0.53 | % | 488,941 | 2,081 | 0.54 | % | ||||||||||||||||
Total interest-bearing deposits | 3,704,562 | 8,610 | 0.31 | % | 3,344,820 | 7,512 | 0.29 | % | ||||||||||||||||
Securities sold under agreements to repurchase | 66,414 | 100 | 0.20 | % | 62,954 | 101 | 0.23 | % | ||||||||||||||||
Federal Home Loan Bank advances | 357,981 | 775 | 0.29 | % | 148,237 | 460 | 0.44 | % | ||||||||||||||||
Subordinated debt and other borrowings | 134,943 | 2,731 | 2.71 | % | 99,363 | 1,892 | 2.45 | % | ||||||||||||||||
Total interest-bearing liabilities | 4,263,900 | 12,216 | 0.38 | % | 3,655,374 | 9,965 | 0.35 | % | ||||||||||||||||
Noninterest-bearing deposits | 1,491,097 | - | - | 1,216,881 | - | - | ||||||||||||||||||
Total deposits and interest-bearing liabilities | 5,754,997 | $ | 12,216 | 0.28 | % | 4,872,255 | $ | 9,965 | 0.26 | % | ||||||||||||||
Other liabilities | 15,567 | 18,018 | ||||||||||||||||||||||
Stockholders' equity | 880,232 | 757,413 | ||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 6,650,796 | $ | 5,647,686 | ||||||||||||||||||||
Net interest income | $ | 165,158 | $ | 142,671 | ||||||||||||||||||||
Net interest spread (3) | 3.56 | % | 3.65 | % | ||||||||||||||||||||
Net interest margin (4) | 3.67 | % | 3.75 | % | ||||||||||||||||||||
(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, 2015 would have been 3.65% compared to a net interest spread of 3.74% for the nine months ended September 30, 2014. | ||||||||||||||||||||||||
(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. |
8
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | ||||||||||||||||||||||||
(dollars in thousands) | September | June | March | December | September | June | ||||||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | 2014 | |||||||||||||||||||
Asset quality information and ratios: | ||||||||||||||||||||||||
Nonperforming assets: | ||||||||||||||||||||||||
Nonaccrual loans | $ | 30,049 | 17,550 | 16,915 | 16,705 | 21,652 | 15,678 | |||||||||||||||||
Other real estate (ORE) | 4,773 | 6,793 | 8,441 | 11,186 | 12,329 | 12,946 | ||||||||||||||||||
Total nonperforming assets | $ | 34,822 | 24,343 | 25,356 | 27,891 | 33,981 | 28,624 | |||||||||||||||||
Past due loans over 90 days and still | ||||||||||||||||||||||||
accruing interest | $ | 5,364 | 483 | 1,609 | 322 | 83 | 649 | |||||||||||||||||
Troubled debt restructurings (5) | $ | 8,373 | 8,703 | 8,726 | 8,410 | 7,606 | 7,552 | |||||||||||||||||
Net loan charge-offs | $ | 4,041 | 1,856 | 1,432 | 842 | 1,580 | 890 | |||||||||||||||||
Allowance for loan losses to nonaccrual loans | 212.2 | % | 373.6 | % | 391.6 | % | 403.2 | % | 305.6 | % | 426.6 | % | ||||||||||||
As a percentage of total loans: | ||||||||||||||||||||||||
Past due accruing loans over 30 days | 0.34 | % | 0.38 | % | 0.30 | % | 0.40 | % | 0.32 | % | 0.45 | % | ||||||||||||
Potential problem loans (6) | 1.44 | % | 1.86 | % | 1.97 | % | 1.81 | % | 1.98 | % | 1.79 | % | ||||||||||||
Allowance for loan losses | 1.01 | % | 1.36 | % | 1.43 | % | 1.47 | % | 1.50 | % | 1.55 | % | ||||||||||||
Nonperforming assets to total loans and ORE | 0.55 | % | 0.50 | % | 0.54 | % | 0.61 | % | 0.77 | % | 0.66 | % | ||||||||||||
Nonperforming assets to total assets | 0.41 | % | 0.37 | % | 0.40 | % | 0.46 | % | 0.58 | % | 0.49 | % | ||||||||||||
Classified asset ratio (Pinnacle Bank) (8) | 17.1 | % | 19.0 | % | 20.3 | % | 18.1 | % | 20.0 | % | 18.1 | % | ||||||||||||
Annualized net loan charge-offs year-to-date | ||||||||||||||||||||||||
to avg. loans (7) | 0.20 | % | 0.14 | % | 0.13 | % | 0.10 | % | 0.11 | % | 0.09 | % | ||||||||||||
Wtd. avg. commercial loan internal risk ratings (6) | 4.5 | 4.5 | 4.5 | 4.4 | 4.5 | 4.5 | ||||||||||||||||||
Interest rates and yields: | ||||||||||||||||||||||||
Loans | 4.33 | % | 4.27 | % | 4.35 | % | 4.34 | % | 4.34 | % | 4.27 | % | ||||||||||||
Securities | 2.51 | % | 2.56 | % | 2.79 | % | 2.81 | % | 2.85 | % | 2.93 | % | ||||||||||||
Total earning assets | 3.93 | % | 3.91 | % | 4.02 | % | 4.00 | % | 4.03 | % | 3.97 | % | ||||||||||||
Total deposits, including non-interest bearing | 0.24 | % | 0.21 | % | 0.21 | % | 0.20 | % | 0.21 | % | 0.22 | % | ||||||||||||
Securities sold under agreements to repurchase | 0.22 | % | 0.19 | % | 0.19 | % | 0.19 | % | 0.23 | % | 0.21 | % | ||||||||||||
FHLB advances | 0.33 | % | 0.23 | % | 0.31 | % | 0.56 | % | 0.44 | % | 0.33 | % | ||||||||||||
Subordinated debt and other borrowings | 3.16 | % | 2.44 | % | 2.44 | % | 2.48 | % | 2.45 | % | 2.58 | % | ||||||||||||
Total deposits and interest-bearing liabilities | 0.31 | % | 0.27 | % | 0.26 | % | 0.25 | % | 0.26 | % | 0.27 | % | ||||||||||||
Pinnacle Financial Partners capital ratios (8): | ||||||||||||||||||||||||
Stockholders' equity to total assets | 13.3 | % | 12.9 | % | 13.1 | % | 13.3 | % | 13.3 | % | 13.2 | % | ||||||||||||
Common equity Tier one capital | 8.7 | % | 9.4 | % | 9.4 | % | 10.6 | % | 10.6 | % | 10.5 | % | ||||||||||||
Tier one risk-based | 9.8 | % | 10.8 | % | 10.8 | % | 12.1 | % | 12.2 | % | 12.1 | % | ||||||||||||
Total risk-based | 11.4 | % | 12.0 | % | 12.0 | % | 13.4 | % | 13.4 | % | 13.4 | % | ||||||||||||
Leverage | 10.0 | % | 10.5 | % | 10.4 | % | 11.3 | % | 11.2 | % | 11.0 | % | ||||||||||||
Tangible common equity to tangible assets | 8.6 | % | 9.5 | % | 9.5 | % | 9.6 | % | 9.5 | % | 9.3 | % | ||||||||||||
Pinnacle Bank ratios: | ||||||||||||||||||||||||
Common equity Tier one | 9.1 | % | 10.1 | % | 10.0 | % | 11.4 | % | 11.5 | % | 11.5 | % | ||||||||||||
Tier one risk-based | 9.1 | % | 10.1 | % | 10.1 | % | 11.4 | % | 11.5 | % | 11.5 | % | ||||||||||||
Total risk-based | 10.8 | % | 11.2 | % | 11.3 | % | 12.6 | % | 12.8 | % | 12.8 | % | ||||||||||||
Leverage | 9.4 | % | 9.8 | % | 9.7 | % | 10.6 | % | 10.6 | % | 10.5 | % | ||||||||||||
This information is preliminary and based on company data available at the time of the presentation. |
9
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | ||||||||||||||||||||||||
(dollars in thousands, except per share data) | September | June | March | December | September | June | ||||||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | 2014 | |||||||||||||||||||
Per share data: | ||||||||||||||||||||||||
Earnings – basic | $ | 0.64 | 0.65 | 0.62 | 0.54 | 0.52 | 0.49 | |||||||||||||||||
Earnings – diluted | $ | 0.62 | 0.64 | 0.62 | 0.53 | 0.52 | 0.49 | |||||||||||||||||
Common dividends per share | $ | 0.12 | 0.12 | 0.12 | 0.08 | 0.08 | 0.08 | |||||||||||||||||
Book value per common share at quarter end (9) | $ | 27.80 | 23.39 | 22.98 | 22.46 | 21.93 | 21.47 | |||||||||||||||||
Tangible common equity per common share at quarter end | $ | 17.09 | 16.56 | 16.12 | 15.57 | 15.01 | 14.53 | |||||||||||||||||
Weighted avg. common shares – basic | 37,828,324 | 35,128,856 | 35,041,203 | 34,827,999 | 34,762,206 | 34,697,888 | ||||||||||||||||||
Weighted avg. common shares – diluted | 38,792,783 | 35,554,683 | 35,380,529 | 35,292,319 | 35,155,224 | 35,081,702 | ||||||||||||||||||
Common shares outstanding | 40,802,904 | 35,977,987 | 35,864,667 | 35,732,483 | 35,654,541 | 35,601,495 | ||||||||||||||||||
Investor information: | ||||||||||||||||||||||||
Closing sales price | $ | 49.41 | 54.37 | 44.46 | 39.54 | 36.10 | 39.48 | |||||||||||||||||
High closing sales price during quarter | $ | 55.18 | 54.88 | 45.19 | 39.95 | 39.75 | 39.48 | |||||||||||||||||
Low closing sales price during quarter | $ | 45.03 | 44.25 | 35.52 | 34.65 | 35.21 | 33.46 | |||||||||||||||||
Other information: | ||||||||||||||||||||||||
Gains on mortgage loans sold: | ||||||||||||||||||||||||
Mortgage loan sales: | ||||||||||||||||||||||||
Gross loans sold | $ | 145,751 | 112,609 | 95,782 | 94,816 | 96,050 | 83,421 | |||||||||||||||||
Gross fees (10) | $ | 3,186 | 3,066 | 2,234 | 2,359 | 2,431 | 1,972 | |||||||||||||||||
Gross fees as a percentage of loans originated | 2.19 | % | 2.72 | % | 2.33 | % | 2.49 | % | 2.53 | % | 2.36 | % | ||||||||||||
Net gain on mortgage loans sold | $ | 1,895 | 1,652 | 1,941 | 1,374 | 1,353 | 1,669 | |||||||||||||||||
Investment gains on sales, net (17) | $ | - | 556 | 6 | - | 29 | - | |||||||||||||||||
Brokerage account assets, at quarter-end (11) | $ | 1,731,828 | 1,783,062 | 1,739,669 | 1,695,238 | 1,658,237 | 1,680,619 | |||||||||||||||||
Trust account managed assets, at quarter-end | $ | 839,518 | 924,605 | 889,392 | 764,802 | 720,071 | 687,772 | |||||||||||||||||
Core deposits (12) | $ | 4,832,719 | 4,608,648 | 4,412,635 | 4,381,177 | 4,260,627 | 4,245,745 | |||||||||||||||||
Core deposits to total funding (12) | 82.8 | % | 81.8 | % | 81.0 | % | 84.8 | % | 84.6 | % | 85.2 | % | ||||||||||||
Risk-weighted assets | $ | 7,425,629 | 5,829,846 | 5,591,382 | 5,233,329 | 5,049,592 | 4,924,884 | |||||||||||||||||
Total assets per full-time equivalent employee | $ | 7,960 | 8,141 | 8,153 | 7,877 | 7,744 | 7,734 | |||||||||||||||||
Annualized revenues per full-time equivalent employee | $ | 308.5 | 360.0 | 365.3 | 336.0 | 327.0 | 320.6 | |||||||||||||||||
Annualized expenses per full-time equivalent employee | $ | 166.7 | 184.1 | 192.9 | 178.6 | 180.0 | 181.7 | |||||||||||||||||
Number of employees (full-time equivalent) | 1,073.5 | 800.5 | 774.5 | 764.0 | 757.5 | 748.5 | ||||||||||||||||||
Associate retention rate (13) | 96.1 | % | 94.7 | % | 94.0 | % | 93.3 | % | 93.5 | % | 93.8 | % | ||||||||||||
Selected economic information (in thousands) (14): | ||||||||||||||||||||||||
Nashville MSA nonfarm employment - August 2015 | 908.1 | 906.6 | 890.9 | 886.7 | 884.7 | 874.3 | ||||||||||||||||||
Knoxville MSA nonfarm employment -August 2015 | 386.8 | 387.8 | 382.7 | 381.5 | 378.9 | 373.4 | ||||||||||||||||||
Chattanooga MSA nonfarm employment - August 2015 | 245.0 | 245.4 | 242.5 | 240.7 | 240.2 | 238.6 | ||||||||||||||||||
Memphis MSA nonfarm employment - August 2015 | 620.5 | 621.8 | 618.7 | 617.5 | 618.1 | 613.7 | ||||||||||||||||||
Nashville MSA unemployment - August 2015 | 4.3 | % | 4.6 | % | 4.6 | % | 5.2 | % | 5.3 | % | 5.2 | % | ||||||||||||
Knoxville MSA unemployment -August 2015 | 5.0 | % | 5.4 | % | 5.3 | % | 6.1 | % | 6.2 | % | 6.1 | % | ||||||||||||
Chattanooga MSA unemployment - August 2015 | 5.6 | % | 5.6 | % | 5.7 | % | 6.3 | % | 6.5 | % | 6.4 | % | ||||||||||||
Memphis MSA unemployment - August 2015 | 6.5 | % | 6.5 | % | 6.5 | % | 7.4 | % | 7.6 | % | 7.5 | % | ||||||||||||
Nashville residential median home price - September 2015 | $ | 236.9 | 240.0 | 222.4 | 213.5 | 211.4 | 222.0 | |||||||||||||||||
Nashville inventory of residential homes for sale- September 2015 (16) | 8.7 | 9.2 | 8.2 | 7.6 | 9.9 | 10.6 | ||||||||||||||||||
This information is preliminary and based on company data available at the time of the presentation. |
10
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | ||||||||||||||||||||||||
September | June | March | December | September | June | |||||||||||||||||||
(dollars in thousands, except per share data) | 2015 | 2015 | 2015 | 2014 | 2014 | 2014 | ||||||||||||||||||
Net interest income | $ | 62,059 | 51,831 | 51,269 | 50,313 | 49,537 | 47,226 | |||||||||||||||||
Noninterest income | 21,410 | 20,019 | 18,493 | 14,384 | 12,888 | 12,598 | ||||||||||||||||||
Less: Investment gains on sales, net | - | (556 | ) | (6 | ) | - | (29 | ) | - | |||||||||||||||
Noninterest income excluding investment | ||||||||||||||||||||||||
gains on sales, net | 21,410 | 19,463 | 18,487 | 14,384 | 12,859 | 12,598 | ||||||||||||||||||
Total revenues excluding the impact of investment | ||||||||||||||||||||||||
gains on sales, net | 83,469 | 71,294 | 69,756 | 64,697 | 62,396 | 59,824 | ||||||||||||||||||
Noninterest expense | 45,107 | 36,747 | 36,831 | 34,391 | 34,360 | 33,902 | ||||||||||||||||||
Less: Other real estate expense | (686 | ) | (115 | ) | 395 | (630 | ) | 417 | 226 | |||||||||||||||
FHLB prepayment charges | - | 479 | - | - | - | - | ||||||||||||||||||
Merger related expenses | 2,249 | 59 | - | - | - | - | ||||||||||||||||||
Noninterest expense excluding the impact of | ||||||||||||||||||||||||
other real estate expense, FHLB prepayment charges and | ||||||||||||||||||||||||
merger related expenses | 43,544 | 36,324 | 36,436 | 35,021 | 33,943 | 33,676 | ||||||||||||||||||
Adjusted pre-tax pre-provision income (15) | $ | 39,925 | 34,970 | 33,320 | 29,676 | 28,453 | 26,148 | |||||||||||||||||
Efficiency Ratio (4) | 54.0 | % | 51.1 | % | 52.8 | % | 53.2 | % | 55.0 | % | 56.7 | % | ||||||||||||
Adjustment due to investment gains, ORE expense, | ||||||||||||||||||||||||
FHLB prepayment charges and merger related expense) | -1.9 | % | -0.2 | % | -0.6 | % | 1.0 | % | -0.6 | % | -0.4 | % | ||||||||||||
Efficiency Ratio (excluding investment gains, ORE expense, | ||||||||||||||||||||||||
FHLB prepayment charges and merger related expenses) | 52.2 | % | 50.9 | % | 52.2 | % | 54.1 | % | 54.4 | % | 56.3 | % | ||||||||||||
Total average assets | $ | 7,514,633 | 6,319,712 | 6,102,523 | 5,855,421 | 5,752,776 | 5,673,615 | |||||||||||||||||
Noninterest expense (excluding ORE expense, FHLB | ||||||||||||||||||||||||
prepayment charges and merger related expenses) | ||||||||||||||||||||||||
to avg. assets (1) | 2.30 | % | 2.31 | % | 2.42 | % | 2.37 | % | 2.34 | % | 2.38 | % | ||||||||||||
Earnings per share excluding merger related expenses | ||||||||||||||||||||||||
Net income | $ | 24,149 | 22,664 | 21,843 | 18,737 | 18,197 | 17,170 | |||||||||||||||||
Merger related expenses | 2,249 | 59 | - | - | - | - | ||||||||||||||||||
Tax effect on merger related expenses | (882 | ) | (23 | ) | - | - | - | - | ||||||||||||||||
Net income less merger related expenses | $ | 25,515 | 22,746 | 21,843 | 18,737 | 18,197 | 17,170 | |||||||||||||||||
Basic earnings per share | $ | 0.64 | 0.65 | 0.62 | 0.54 | 0.52 | 0.49 | |||||||||||||||||
Adjustment to basic earnings per share due to merger related expenses | 0.04 | - | - | - | - | - | ||||||||||||||||||
Basic earnings per share excluding merger related expenses | $ | 0.67 | 0.65 | 0.62 | 0.54 | 0.52 | 0.49 | |||||||||||||||||
Diluted earnings per share excluding merger related expenses | $ | 0.62 | 0.64 | 0.62 | 0.53 | 0.52 | 0.49 | |||||||||||||||||
Adjustment to diluted earnings per share due to merger related expenses | 0.04 | - | - | - | - | - | ||||||||||||||||||
Diluted earnings per share excluding merger related expenses | $ | 0.66 | 0.64 | 0.62 | 0.53 | 0.52 | 0.49 | |||||||||||||||||
This information is preliminary and based on company data available at the time of the presentation. |
11
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | ||||||||||||||||||||||||
September | June | March | December | September | June | |||||||||||||||||||
(dollars in thousands, except per share data) | 2015 | 2015 | 2015 | 2014 | 2014 | 2014 | ||||||||||||||||||
Net income | $ | 24,149 | 22,665 | 21,843 | 18,737 | 18,197 | 17,170 | |||||||||||||||||
Merger related expenses | 2,249 | 59 | - | - | - | - | ||||||||||||||||||
Tax effect on merger related expenses | (882 | ) | (23 | ) | - | - | - | - | ||||||||||||||||
Net income less merger related expenses | $ | 25,515 | 22,747 | 21,843 | 18,737 | 18,197 | 17,170 | |||||||||||||||||
Return on average assets | 1.27 | % | 1.44 | % | 1.45 | % | 1.27 | % | 1.25 | % | 1.21 | % | ||||||||||||
Adjustment due to merger related expenses | 0.07 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||
Return on average assets (excluding merger related expenses) | 1.35 | % | 1.44 | % | 1.45 | % | 1.27 | % | 1.25 | % | 1.21 | % | ||||||||||||
Tangible assets: | ||||||||||||||||||||||||
Total assets | $ | 8,544,799 | 6,516,544 | 6,314,346 | 6,018,248 | 5,865,703 | 5,788,792 | |||||||||||||||||
Less: Goodwill | (425,151 | ) | (243,291 | ) | (243,443 | ) | (243,529 | ) | (243,533 | ) | (243,550 | ) | ||||||||||||
Core deposit and other intangible assets | (11,641 | ) | (2,438 | ) | (2,666 | ) | (2,893 | ) | (3,129 | ) | (3,365 | ) | ||||||||||||
Net tangible assets | $ | 8,108,007 | 6,270,815 | 6,068,237 | 5,771,827 | 5,619,041 | 5,541,877 | |||||||||||||||||
Tangible equity: | ||||||||||||||||||||||||
Total stockholders' equity | $ | 1,134,226 | 841,390 | 824,151 | 802,693 | 781,934 | 764,382 | |||||||||||||||||
Less: Goodwill | (425,151 | ) | (243,291 | ) | (243,443 | ) | (243,529 | ) | (243,533 | ) | (243,550 | ) | ||||||||||||
Core deposit and other intangible assets | (11,641 | ) | (2,438 | ) | (2,666 | ) | (2,893 | ) | (3,129 | ) | (3,365 | ) | ||||||||||||
Net tangible common equity | $ | 697,434 | 595,661 | 578,042 | 556,271 | 535,272 | 517,467 | |||||||||||||||||
Ratio of tangible common equity to tangible assets | 8.60 | % | 9.50 | % | 9.53 | % | 9.64 | % | 9.53 | % | 9.34 | % | ||||||||||||
Average tangible equity: | ||||||||||||||||||||||||
Average stockholders' equity | $ | 986,325 | 836,791 | 815,706 | 796,338 | 774,032 | 757,089 | |||||||||||||||||
Less: Average goodwill | (297,495 | ) | (243,383 | ) | (243,505 | ) | (243,531 | ) | (243,544 | ) | (243,559 | ) | ||||||||||||
Core deposit and other intangible assets | (6,662 | ) | (2,581 | ) | (2,809 | ) | (3,040 | ) | (3,278 | ) | (3,484 | ) | ||||||||||||
Net average tangible common equity | $ | 682,168 | 590,827 | 569,392 | 549,767 | 527,210 | 510,046 | |||||||||||||||||
Return on average tangible common equity (1) | 14.04 | % | 15.39 | % | 15.56 | % | 13.52 | % | 13.69 | % | 13.50 | % | ||||||||||||
Adjustment due to merger related expenses | 0.79 | % | 0.06 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||
Return on average tangible common equity | ||||||||||||||||||||||||
(excluding merger related expenses) | 14.84 | % | 15.44 | % | 15.56 | % | 13.52 | % | 13.69 | % | 13.50 | % | ||||||||||||
Total average assets | $ | 7,514,633 | 6,319,712 | 6,102,523 | 5,855,421 | 5,752,776 | 5,673,615 | |||||||||||||||||
This information is preliminary and based on company data available at the time of the presentation. | ||||||||||||||||||||||||
12
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | ||||
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. This average is for PNFP legacy loans only. | ||||
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 calculated using regulatory reporting regulations enacted for such period and 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 as well as other real estate owned expenses and FHLB restructuring charges. | ||||
16. Represents one 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 fully diluted earnings per share as of the dividend declaration date. | ||||
13