EXHIBIT 99.1
[PINNACLE FINANCIAL PARTNERS LOGO]
FOR IMMEDIATE RELEASE
MEDIA CONTACT: Vicki Kessler 615-320-7532
FINANCIAL CONTACT: Harold Carpenter 615-744-3742
WEBSITE: www.mypinnacle.com
PINNACLE FINANCIAL REPORTS 100 PERCENT INCREASE
IN EARNINGS PER SHARE
ASSETS GROW TO $586 MILLION
NASHVILLE, Tenn., July 20, 2004 - Pinnacle Financial Partners Inc.
(Nasdaq: PNFP), the holding company for Pinnacle National Bank, today reported
that net income for the quarter ended June 30, 2004, was $1,168,000, or $0.14
per diluted share, an increase of 100 percent when compared to Pinnacle's net
income of $537,000, or $0.07 per diluted share for the quarter ended June 30,
2003. The company also reported net income for the six months ended June 30,
2004, of $2,239,000, or $0.27 per diluted share, an increase of 125 percent
when compared to Pinnacle's net income of $910,000, or $0.12 per diluted share
for the six months ended June 30, 2003.
Return on average assets for the quarter ended June 30, 2004, was 0.82
percent compared to 0.59 percent for the same quarter last year. Return on
average stockholders' equity for the quarter ended June 30, 2004, was 12.83
percent compared to 6.54 percent for the same quarter last year. The firm's
efficiency ratio (noninterest expense divided by net interest income and
noninterest income) improved to 63.2 percent during the second quarter of 2004
compared to 69.3 percent during the second quarter of 2003.
Total assets grew to $586 million as of June 30, 2004, up 35 percent on
an annualized basis from the $498 million reported at December 31, 2003, and up
45 percent from the $403 million reported at June 30, 2003. Loans as of June
30, 2004, were $355 million compared to $297 million at December 31, 2003, and
$255 million at June 30, 2003. Total deposits increased to $467 million at June
30, 2004, compared to $391 million at December 31, 2003 and $309 million at
June 30, 2003.
Net loan growth for the quarter ended June 30, 2004, was $32 million
compared to $26 million during the first quarter of 2004 and $27 million during
the second quarter of 2003. Total deposit growth for the quarter ended June 30,
2004, was $30 million compared to $47 million during the first quarter of 2004
and $42 million during the second quarter of 2003.
Pinnacle Reports Continued Growth - 2 of 4
"Strong loan demand was a major contributor to the excellent results
during the second quarter, and we expect demand to accelerate in the third
quarter," said M. Terry Turner, President and CEO of Pinnacle Financial
Partners. "Our strategy to add a number of seasoned professionals with strong
track records in the Nashville financial community throughout the year
continues to bring more and more of Nashville's leading businesses to
Pinnacle."
Net interest income for the quarter ended June 30, 2004, was $4.5
million compared to $3.0 million for the quarter ended June 30, 2003. Net
interest income for the six months ended June 30, 2004, was $8.7 million
compared to $5.6 million for same period in 2003. The net interest margin for
the second quarter of 2004 was 3.51 percent, which was higher than the net
interest margin of 3.49 percent reported during the first quarter in 2004. The
percentage of daily floating rate loans to total loans was 52.5 percent at June
30, 2004, compared to 52.4 percent at March 31, 2004, and 51.7 percent at June
30, 2003.
The provision for loan losses was $449,000 for the second quarter of
2004 compared to $354,000 in the first quarter of 2004 and $347,000 for the
same quarter in 2003. The provision for loan losses was $802,000 for the first
six months of 2004 compared to $635,000 for the period in 2003. The allowance
for loan losses represented 1.26 percent of total loans at June 30, 2004.
Annualized net charge offs to average loans amounted to 0.03 percent for the
quarter ended June 30, 2004. Nonaccrual loans as a percentage of total loans
increased to 0.38 percent at June 30, 2004, due to one borrower who has been
experiencing cash flow difficulties over the last few months. "Our credit
quality continues to be one of our most significant strengths," Turner said.
"We believe the reason we have been able to perform so well from a credit
quality standpoint is our success in attracting the most experienced team of
bankers in our area."
Additionally, during the second quarter of 2004, the firm was
successful in receiving approximately $354,000 in proceeds from another
borrower that had been on nonaccruing status for the last few quarters.
Approximately $260,000 of these proceeds have been included in the firm's
earnings for the second quarter of 2004. The firm anticipates receiving
additional proceeds from the liquidation of other assets related to this
particular borrower.
Noninterest income for the quarter ended June 30, 2004, was $1.2
million compared to $877,000 during the same quarter in 2003. Noninterest
income for the six months ended June 30, 2004, was $2.4 million compared to
$1.3 million during the same period in 2003. These increases were due to the
continued development of Pinnacle's mortgage origination unit, gains recognized
on the sale of loan participations, increased depositor service charges due to
more deposit accounts and increased investment services income from Pinnacle
Pinnacle Reports Continued Growth - 3 of 4
Asset Management. For the quarter ended June 30, 2004, noninterest income
represented approximately 20.7 percent of total revenues (the sum of net
interest income and noninterest income), compared to 22.7 percent for the same
quarter in 2003.
Noninterest expense for the quarter ended June 30, 2004, was $3.6
million compared to $2.7 million for the same quarter in 2003. Noninterest
expense for the six months ended June 30, 2004, was $7.0 million compared to
$4.9 million for the same period in 2003. Pinnacle continues to increase
expense levels in order to capitalize on market opportunities:
o Pinnacle currently has 102 employees with 74 working in
client contact areas and 28 in operational and corporate
areas. Pinnacle anticipates adding 24 more employees in 2004,
including 16 who are expected to be in client contact areas,
with the remainder in operational and corporate areas.
o Construction is nearing completion for the firm's West End
Avenue office in Nashville. This office is located adjacent
to Vanderbilt University and is within close proximity to
Nashville's medical community, including several prominent
hospitals and medical office facilities.
o Pinnacle has also announced plans to open its seventh office
late this year in Franklin, Tenn., which is the county seat
of Williamson County. The Franklin office will be the firm's
third office in Williamson County, which has the highest per
capita income and one of the highest growth rates of all
counties in Tennessee.
Based on anticipated growth trends and the anticipated results from
these trends, Pinnacle estimates its third quarter 2004 diluted earnings per
share will approximate $0.15 to $0.17. Pinnacle estimates diluted earnings per
share for the year ending Dec. 31, 2004, to be $0.59 to $0.63. Management has
developed several scenarios under which these estimates can be achieved and
believes these estimates to be reasonable based on these scenarios. However,
unanticipated events or developments may cause the actual results, performance
or achievements of Pinnacle to differ materially from these estimates.
Pinnacle Financial Partners, the largest financial services firm
headquartered in Nashville, provides a full range of banking, investment and
insurance products and services targeted at small- to mid-sized businesses and
their owners/operators. A number of Pinnacle's senior financial advisors
provide comprehensive wealth management services to help clients increase,
protect and distribute their assets.
Pinnacle Reports Continued Growth - 4 of 4
Pinnacle opened its first office in October 2000 in Commerce Center in
Downtown Nashville. Since then the firm has added Nashville offices in
Rivergate and Green Hills and in Brentwood and the Cool Springs area of
Williamson County.
Additional information concerning Pinnacle can be accessed at
www.mypinnacle.com.
###
Certain of the statements in this release may constitute forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended (the "Securities Act"). The words "expect," "anticipate," "intend,"
"plan," "believe," "seek," "estimate" and similar expressions are intended to
identify such forward-looking statements, but other statements not based on
historical information may also be considered forward-looking. All
forward-looking statements are subject to risks, uncertainties and other facts
that may cause the actual results, performance or achievements of Pinnacle to
differ materially from any results expressed or implied by such forward-looking
statements. Such factors include, without limitation, (i) unanticipated
deterioration in the financial condition of borrowers resulting in significant
increases in loan losses and provisions for those losses, (ii) increased
competition with other financial institutions, (iii) lack of sustained growth
in the economy in the Nashville, Tennessee area, (iv) rapid fluctuations or
unanticipated changes in interest rates, (v) the inability of Pinnacle to
satisfy regulatory requirements for its expansion plans, and (vi) changes in
the legislative and regulatory environment, a more detailed description of
various risks is contained in Pinnacle's most recent annual report on Form
10-KSB. Many of such factors are beyond Pinnacle's ability to control or
predict, and readers are cautioned not to put undue reliance on such
forward-looking statements. Pinnacle disclaims any obligation to update or
revise any forward-looking statements contained in this release, whether as a
result of new information, future events or otherwise.
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
================================================================================
JUNE 30, DECEMBER 31,
2004 2003
-------------- --------------
ASSETS
Cash and noninterest-bearing due from banks .................... $ 21,147,438 $ 13,768,278
Interest-bearing due from banks ................................ 747,081 1,180,371
Federal funds sold ............................................. 24,613,281 32,235,401
-------------- --------------
Cash and cash equivalents .............................. 46,507,800 47,184,050
Securities available-for-sale, at fair value ................... 137,892,209 139,944,238
Securities held-to-maturity (fair value of $26,326,336) ........ 27,636,017 --
Mortgage loans held-for-sale ................................... 3,853,818 1,582,600
Loans .......................................................... 355,267,007 297,004,110
Less allowance for loan losses ................................. (4,465,615) (3,718,598)
-------------- --------------
Loans, net ............................................. 350,801,392 293,285,512
Premises and equipment, net .................................... 7,593,716 6,911,359
Other assets ................................................... 12,028,192 9,512,899
-------------- --------------
Total assets .................................... $ 586,313,144 $ 498,420,658
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand ............................. $ 82,491,061 $ 60,796,396
Interest-bearing demand ................................ 35,845,391 31,407,213
Savings and money market accounts ...................... 162,334,853 140,383,878
Time ................................................... 186,649,747 157,981,525
-------------- --------------
Total deposits .................................. 467,321,052 390,569,012
Securities sold under agreements to repurchase ................. 23,772,482 15,050,110
Federal Home Loan Bank advances ................................ 47,500,000 44,500,000
Subordinated debt .............................................. 10,310,000 10,310,000
Other liabilities .............................................. 2,284,513 3,655,155
-------------- --------------
Total liabilities ............................... 551,188,047 464,084,277
Stockholders' equity:
Preferred stock, no par value; 10,000,000 shares
authorized; no shares issued and outstanding ........ -- --
Common stock, par value $1.00; 20,000,000 shares
authorized; 7,404,586 issued and outstanding at
June 30, 2004 and 7,384,106 issued and
outstanding at December 31, 2003 .................... 7,404,586 7,384,106
Additional paid-in capital ............................. 27,071,090 26,990,894
Retained earnings (accumulated deficit) ................ 2,050,342 (189,155)
Accumulated other comprehensive income (loss), net ..... (1,400,921) 150,536
-------------- --------------
Total stockholders' equity ...................... 35,125,097 34,336,381
-------------- --------------
Total liabilities and stockholders' equity ...... $ 586,313,144 $ 498,420,658
============== ==============
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
===============================================================================
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2004 2003 2004 2003
------------ ------------ ------------ ------------
INTEREST INCOME:
Loans, including fees .............................. $ 4,505,938 $ 3,356,843 $ 8,452,510 $ 6,320,353
Securities, available-for-sale
Taxable ..................................... 1,555,145 930,427 3,106,004 1,833,697
Tax-exempt .................................. 99,010 42,523 184,985 85,162
Federal funds sold and other ....................... 65,364 39,690 148,081 76,101
------------ ------------ ------------ ------------
Total interest income ....................... 6,225,457 4,369,483 11,891,580 8,315,313
------------ ------------ ------------ ------------
INTEREST EXPENSE:
Deposits ........................................... 1,328,050 1,119,586 2,499,238 2,192,258
Securities sold under agreements to repurchase ..... 11,380 12,170 20,673 26,966
Federal funds purchased and other borrowings ....... 350,212 253,060 683,562 475,189
------------ ------------ ------------ ------------
Total interest expense ...................... 1,689,642 1,384,816 3,203,473 2,694,413
------------ ------------ ------------ ------------
Net interest income ......................... 4,535,815 2,984,667 8,688,107 5,620,900
PROVISION FOR LOAN LOSSES .................................. 448,474 347,266 802,322 635,292
------------ ------------ ------------ ------------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES ........ 4,087,341 2,637,401 7,885,785 4,985,608
NONINTEREST INCOME:
Service charges on deposit accounts ................ 231,208 120,360 395,053 222,113
Investment services ................................ 404,516 176,292 794,095 332,224
Fees from origination of mortgage loans ............ 265,902 197,906 457,822 244,093
Gain on loan participations sold ................... 116,461 124,039 238,078 126,229
Gain on sale of investment securities, net ......... -- 116,573 248,353 134,270
Other noninterest income ........................... 164,796 141,879 274,838 280,304
------------ ------------ ------------ ------------
Total noninterest income .................... 1,182,883 877,049 2,408,239 1,339,233
------------ ------------ ------------ ------------
NONINTEREST EXPENSE:
Compensation and employee benefits ................. 2,319,763 1,693,685 4,587,105 3,128,597
Equipment and occupancy ............................ 535,053 445,961 1,040,743 842,786
Marketing and other business development ........... 155,791 103,775 304,949 179,264
Administrative ..................................... 315,709 183,692 536,407 321,913
Postage and supplies ............................... 124,125 106,229 223,264 179,491
Other noninterest expense .......................... 163,418 141,685 334,177 265,242
------------ ------------ ------------ ------------
Total noninterest expense ................... 3,613,859 2,675,027 7,026,645 4,917,293
------------ ------------ ------------ ------------
INCOME BEFORE INCOME TAXES ................................. 1,656,365 839,423 3,267,379 1,407,548
Income tax expense ................................. 487,890 302,556 1,027,882 497,702
------------ ------------ ------------ ------------
NET INCOME ................................................. $ 1,168,475 $ 536,867 $ 2,239,497 $ 909,846
============ ============ ============ ============
PER SHARE INFORMATION (1):
Basic net income per common share .................. $ 0.16 $ 0.07 $ 0.30 $ 0.12
============ ============ ============ ============
Diluted net income per common share ................ $ 0.14 $ 0.07 $ 0.27 $ 0.12
============ ============ ============ ============
Weighted average shares outstanding:
Basic ....................................... 7,397,920 7,384,106 7,391,013 7,384,106
Diluted ..................................... 8,279,114 7,761,284 8,246,422 7,722,274
- -------------
(1) On April 20, 2004, the Board of Directors of Pinnacle Financial
approved a two for one stock split of Pinnacle's common stock payable
as a 100% stock dividend on May 10, 2004 to shareholders of record on
April 30, 2004. Pinnacle Financial has retroactively applied the
impact of this stock split in these financial statements.
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED
(DOLLARS IN THOUSANDS, JUNE MAR DEC SEPT JUNE MAR
EXCEPT PER SHARE DATA) 2004 2004 2003 2003 2003 2003
----------- ----------- ----------- ----------- ----------- -----------
BALANCE SHEET DATA, AT QUARTER END:
Total assets ........................ $ 586,313 541,052 498,421 440,693 403,229 348,366
Total loans ......................... 355,267 323,416 297,004 279,702 255,448 228,842
Allowance for loan losses ........... (4,466) (4,042) (3,719) (3,492) (3,189) (2,860)
Securities .......................... 165,528 162,315 139,944 115,421 99,968 94,600
Total deposits ...................... 467,321 437,601 390,569 347,191 309,089 266,732
Securities sold under
agreements to repurchase ......... 23,772 14,699 15,050 19,291 17,803 15,846
Advances from FHLB .................. 47,500 40,500 44,500 39,500 41,500 32,500
Subordinated debt ................... 10,310 10,310 10,310 -- -- --
Total stockholders' equity .......... 35,125 36,266 34,336 33,245 33,627 32,403
BALANCE SHEET DATA, QUARTERLY AVERAGES:
Total assets ........................ $ 555,437 508,260 454,700 406,142 365,385 326,108
Total loans ......................... 343,974 306,549 283,387 269,703 245,383 217,690
Securities .......................... 169,192 149,802 137,243 107,162 95,351 87,124
Total earning assets ................ 527,070 482,572 432,691 386,823 347,671 312,227
Total deposits ...................... 439,964 402,603 356,030 314,302 277,592 243,545
Securities sold under
agreements to repurchase ......... 17,523 14,868 16,013 16,136 11,728 14,106
Advances from FHLB .................. 45,736 42,379 43,630 40,239 38,137 29,994
Subordinated debt ................... 10,310 10,310 655 -- -- --
Total stockholders' equity .......... 35,542 35,705 33,935 32,542 32,944 32,675
STATEMENT OF OPERATIONS DATA,
FOR THE THREE MONTHS ENDED:
Interest income ..................... $ 6,225 5,666 5,244 4,702 4,369 3,946
Interest expense .................... 1,689 1,514 1,351 1,317 1,385 1,310
----------- ----------- ----------- ----------- ----------- -----------
Net interest income ................. 4,536 4,152 3,893 3,385 2,984 2,636
Provision for loan losses ........... 449 354 204 318 347 288
----------- ----------- ----------- ----------- ----------- -----------
Net interest income after
provision for loan losses ........ 4,087 3,798 3,689 3,067 2,637 2,348
Noninterest income .................. 1,183 1,225 924 1,024 877 462
Noninterest expense ................. 3,615 3,412 3,268 2,863 2,675 2,242
----------- ----------- ----------- ----------- ----------- -----------
Net income before taxes .......... 1,655 1,611 1,345 1,228 839 568
Income tax expense .................. 487 540 487 441 302 195
----------- ----------- ----------- ----------- ----------- -----------
Net income ....................... $ 1,168 1,071 858 787 537 373
=========== =========== =========== =========== =========== ===========
PER SHARE DATA:
Earnings - basic .................... $ 0.16 0.15 0.12 0.11 0.07 0.05
Earnings - diluted .................. $ 0.14 0.13 0.11 0.10 0.07 0.05
Book value at quarter end (1) ....... $ 4.74 4.91 4.65 4.50 4.55 4.39
Weighted avg. shares - basic ........ 7,397,920 7,384,106 7,384,106 7,384,106 7,384,106 7,384,106
Weighted avg. shares - diluted ...... 8,279,114 8,213,730 8,114,888 7,944,654 7,761,284 7,683,262
Common shares outstanding ........... 7,404,586 7,384,106 7,384,106 7,384,106 7,384,106 7,384,106
CAPITAL RATIOS (2):
Equity to total assets .............. 6.0% 6.7% 6.8% 7.5% 10.9% 12.1%
Leverage ............................ 8.4% 9.0% 10.5% 8.2% 8.9% 10.1%
Tier 1 risk-based ................... 10.2% 11.2% 11.8% 9.6% 10.6% 12.1%
Total risk-based .................... 11.2% 12.1% 12.8% 10.6% 11.7% 13.2%
(1) Book value per share computed by dividing total stockholders' equity
by common shares outstanding
(2) Capital ratios are for Pinnacle Financial Partners, Inc. and are
defined as follows: Equity to total assets - End of period total
stockholders' equity as a percentage of end of period assets. Leverage
- Tier 1 capital (pursuant to risk-based capital guidelines) as a
percentage of adjusted average assets. Tier 1 risk-based - Tier 1
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.
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED
(dollars in thousands, June Mar Dec Sept June Mar
except per share data) 2004 2004 2003 2003 2003 2003
----------- ----------- ----------- ----------- ----------- -----------
Performance ratios and other data:
Return on average assets ............ 0.82% 0.85% 0.75% 0.77% 0.59% 0.46%
Return on average stockholders'
equity ............................ 12.83% 12.03% 10.02% 9.59% 6.54% 4.63%
Net interest margin (3) ............. 3.51% 3.49% 3.62% 3.51% 3.48% 3.46%
Noninterest income to total
revenue (4) ....................... 20.7% 22.8% 19.2% 23.2% 22.7% 14.9%
Noninterest income to avg. assets ... 0.85% 0.97% 0.81% 1.00% 0.96% 0.57%
Noninterest exp. to avg. assets ..... 2.61% 2.69% 2.85% 2.80% 2.94% 2.79%
Efficiency ratio (5) ................ 63.2% 63.5% 67.9% 65.0% 69.3% 72.4%
Avg. loans to average deposits ...... 78.2% 76.6% 80.2% 85.7% 88.4% 89.4%
Securities to total assets .......... 28.2% 30.0% 28.1% 26.2% 24.8% 27.2%
Average interest-earning assets
to average interest-bearing
liabilities ....................... 118.3% 118.1% 118.7% 118.8% 118.9% 119.4%
Brokered time deposits to total
deposits .......................... 8.8% 8.2% 9.9% 11.2% 15.6% 16.8%
Asset quality information and ratios:
Nonaccrual loans .................... $ 1,339 86 379 1,095 1,095 1,095
Past due loans over 90 days and
still accruing interest ........... $ 35 64 182 88 60 44
Net loan charge-offs (recoveries) ... $ 25 30 (23) 15 18 105
Allowance for loan losses to
total loans ....................... 1.26% 1.25% 1.25% 1.25% 1.25% 1.25%
Nonperforming assets to total
loans and ORE ..................... 0.38% 0.03% 0.13% 0.39% 0.43% 0.48%
Annualized net loan charge-offs
(recoveries) to average loans ...... 0.03% 0.04% (0.02)% 0.02% 0.03% 0.19%
Avg. commercial loan internal
risk ratings (6) .................. 3.9 3.9 4.0 3.9 3.9 3.9
Avg. loan account balances (7) ...... $ 149 147 153 150 155 158
Interest rates and yields:
Loans ............................... 5.27% 5.14% 5.17% 5.41% 5.49% 5.52%
Securities .......................... 3.93% 4.38% 4.31% 3.65% 4.14% 4.44%
Federal funds sold and other ........ 2.20% 1.47% 2.26% 2.28% 2.60% 2.22%
Total earning assets ................ 4.78% 4.73% 4.83% 4.84% 5.06% 5.14%
Total deposits, including non-
interest bearing .................. 1.21% 1.17% 1.21% 1.35% 1.62% 1.79%
Securities sold under agreements
to repurchase ..................... 0.26% 0.25% 0.58% 0.38% 0.42% 0.43%
Federal funds purchased and
FHLB advances ..................... 2.08% 2.19% 2.05% 2.23% 2.44% 2.63%
Subordinated debt ................... 3.54% 3.98% 3.98% -- -- --
Total deposits and other interest-
bearing liabilities ............... 1.31% 1.29% 1.28% 1.40% 1.68% 1.82%
(3) Net interest margin is the result of net interest income on a tax
equivalent basis divided by average interest earning assets
(4) Total revenue is equal to the sum of net interest income and
noninterest income.
(5) Efficiency ratio is calculated by dividing noninterest expense by the
sum of net interest income and noninterest income.
(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). Loans rated "8" or worse are considered potential
problem credits. Generally, consumer loans are not subjected to
internal risk ratings.
(7) Computed by dividing the balance of all loans by the number of loan
accounts as of the end of each quarter.
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED
(dollars in thousands, June Mar Dec Sept June Mar
except per share data) 2004 2004 2003 2003 2003 2003
------------ ------------ ------------ ------------ ------------ ------------
INVESTOR INFORMATION:
Closing sales price .............. $ 18.30 15.25 11.75 9.88 7.98 6.73
High sales price during quarter .. $ 18.67 15.50 12.95 9.97 8.50 7.07
Low sales price during quarter ... $ 13.50 11.65 9.68 8.00 6.53 6.38
OTHER INFORMATION:
Mortgage loan originations ....... $ 16,061 10,845 10,148 14,742 11,388 2,249
Fees from origination of
mortgage loans ................. $ 266 192 178 245 198 46
Fees from origination of
mortgage loans to mortgage
loan originations .............. 1.66% 1.77% 1.75% 1.66% 1.74% 2.05%
Gains on sales of investment
securities, net ................ $ -- 248 -- 114 117 17
Brokerage account assets, at
quarter-end (8) ................ $ 344,000 351,000 319,000 247,000 202,000 177,000
Floating rate loans (9) as a
percentage of total loans ...... 52.5% 52.4% 52.7% 53.7% 51.7% 53.0%
Balance of loan participations
sold to other banks and
serviced by Pinnacle, at
quarter end .................... $ 58,530 54,772 51,653 45,981 44,355 41,594
Total core deposits (10) ......... 59.8% 62.8% 60.1% 55.5% 55.5% 54.1%
Total assets per full-time
equivalent employee ............ $ 5,776 5,695 5,569 5,474 5,486 5,318
Annualized revenues per full-
time equivalent employee ....... $ 225.4 226.4 215.3 211.2 210.1 189.2
Number of employees (full-time
equivalent) .................... 101.5 95.0 89.5 83.5 73.5 65.5
Associate retention rate (11) .... 97.5% 97.4% 96.1% 95.7% 94.6% 92.4%
(8) At market value, based on information obtained from the company's
third party broker/dealer for non-FDIC insured financial products and
services.
(9) Floating rate loans are those loans that are eligible for repricing on
a daily basis subject to changes in Pinnacle's prime lending rate or
other factors.
(10) Core deposits include all transaction deposit accounts, money market
and savings accounts and all certificates of deposit issued in a
denomination of $100,000 or less. 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.
(11) 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.