EXHIBIT 99.1
[PINNACLE 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 RECORD GROWTH
ASSETS GROW TO $685 MILLION AND EARNINGS PER SHARE ARE $0.16
NASHVILLE, Tenn., Oct. 19, 2004 - Pinnacle Financial Partners Inc. (Nasdaq:
PNFP), the holding company for Pinnacle National Bank, today reported that net
income for the quarter ended September 30, 2004, was $1,391,000, or $0.16 per
diluted share, an increase of 60 percent when compared to Pinnacle's net income
of $787,000, or $0.10 per diluted share for the quarter ended September 30,
2003. The company also reported net income for the nine months ended September
30, 2004, of $3,630,000, or $0.43 per diluted share, an increase of 95 percent
when compared to Pinnacle's net income of $1,696,000, or $0.22 per diluted share
for the nine months ended September 30, 2003.
Return on average assets for the quarter ended September 30, 2004, was 0.89
percent compared to 0.77 percent for the same quarter last year. Return on
average stockholders' equity for the quarter ended September 30, 2004, was 12.58
percent compared to 9.59 percent for the same quarter last year. The firm's
efficiency ratio (noninterest expense divided by net interest income and
noninterest income) improved to 57.4 percent during the third quarter of 2004
compared to 65.0 percent during the third quarter of 2003.
Total assets grew a record $99 million to $685 million as of September 30,
2004, up $187 million or 50 percent on an annualized basis from the $498 million
reported at December 31, 2003. Assets at the end of the third quarter were up
$244 million or 55 percent from the $441 million reported a year ago. Loans as
of September 30, 2004, were $435 million, more than 46 percent higher than the
$297 million reported at December 31, 2003, and almost 55 percent higher than
the $280 million reported at September 30, 2003. Total deposits increased to
$542 million at September 30, 2004, compared to $391 million at December 31,
2003, and $347 million at September 30, 2003.
Net loan growth for the quarter ended September 30, 2004, was $80 million
which was 2.5 times more than the loan growth experienced in the second quarter
of 2004 which was
Pinnacle Reports Continued Growth - 2 of 5
$32 million. Loan growth during the third quarter of 2003 was $24 million. Total
deposit growth for the quarter ended September 30, 2004, was $75 million
compared to $30 million during the second quarter of 2004 and $38 million during
the third quarter of 2003.
"The outstanding loan and deposit growth we achieved in the third quarter
is evidence that our investment in seasoned financial professionals is paying
off," said M. Terry Turner, President and CEO of Pinnacle Financial Partners.
"This growth, combined with the success of our recently completed follow-on
stock offering, gives us a great deal of momentum for the remainder of 2004 and
into 2005. After only four years of operations, we believe our associates have
built a reputation for providing Nashville's small businesses and affluent
individuals distinctive service and effective advice and that their effort is
the reason for these great results."
Net interest income for the quarter ended September 30, 2004, was $5.3
million compared to $3.4 million for the quarter ended September 30, 2003. Net
interest income for the nine months ended September 30, 2004, was $14.0 million
compared to $9.0 million for the same period in 2003. The net interest margin
for the third quarter of 2004 was 3.62 percent, which was higher than the net
interest margin of 3.51 percent reported during the second quarter in 2004. The
percentage of daily floating rate loans to total loans increased to 55.8 percent
at September 30, 2004, compared to 52.5 percent at June 30, 2004, and 55.5
percent at September 30, 2003.
The provision for loan losses was $1,012,000 for the third quarter of 2004
reflecting the impact of the significant loan growth during the third quarter.
The provision for the third quarter of 2004 is higher than the $449,000 in the
second quarter of 2004 and $318,000 in the third quarter in 2003. The provision
for loan losses was $1,814,000 for the first nine months of 2004 compared to
$953,000 for the same period in 2003. The allowance for loan losses represented
1.25 percent of total loans at September 30, 2004. Annualized net charge-offs to
average loans amounted to 0.04 percent for the quarter ended September 30, 2004.
Nonaccrual loans as a percentage of total loans decreased to 0.31 percent at
September 30, 2004.
Noninterest income for the quarter ended September 30, 2004, was $1,678,000
compared to $1,024,000 during the same quarter in 2003. Noninterest income for
the nine months ended September 30, 2004, was $4.1 million compared to $2.4
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 loans and loan participations and investment securities,
increased service charges due to more deposit accounts and increased investment
services income from Pinnacle Asset Management. For the quarter
Pinnacle Reports Continued Growth - 3 of 5
ended September 30, 2004, noninterest income represented approximately 24.1
percent of total revenues (the sum of net interest income and noninterest
income), compared to 23.2 percent for the same quarter in 2003.
Noninterest expense for the quarter ended September 30, 2004, was $4.0
million compared to $2.9 million for the same quarter in 2003. Noninterest
expense for the nine months ended September 30, 2004, was $11.0 million compared
to $7.8 million for the same period in 2003. Pinnacle has and will continue to
increase expense levels in order to capitalize on current and future market
opportunities and to provide the necessary infrastructure to support its growth:
- Pinnacle currently has 117 employees with 84 working in client
contact areas and 33 in operational and corporate areas, an
increase of 27 employees since December 31, 2003. Pinnacle
anticipates adding 12 more employees in 2004, including eight who
are expected to be in client contact areas, with the remainder in
operational and corporate areas. Approximately 23 employee
additions are currently planned for 2005, bringing the total
number of employees to 152 by the end of 2005.
- The firm opened its sixth office, located in the West End area of
Nashville, during the third quarter. 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. Pinnacle has also begun
a new medical practice financial services unit based from its
West End location with four associates focused on serving this
particular business sector.
- Pinnacle has also begun construction of its seventh office,
located in Franklin, Tenn., which is the county seat of
Williamson County. The Franklin office, which is anticipated to
be open in late 2004 or early 2005, 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 Tennessee
counties.
- Pinnacle has begun negotiations for its eighth office, to be
located in the Hendersonville, Tenn., area, northeast of
Nashville's central business district. The firm anticipates this
office to be open in mid-2005. Additionally, the firm is
considering a ninth location to be opened in late-2005 in the
Nashville MSA with two more offices planned for 2006, bringing
the total number of offices to 11 by December 2006.
Pinnacle Reports Continued Growth - 4 of 5
INVESTMENT OUTLOOK
During the third quarter of 2004, Pinnacle presented its outlook for growth
at a regional investor conference which included Pinnacle's plans for additional
hiring and buildout of the branch distribution system. Turner noted at the
conference that he believed the firm could grow to $1.2 billion in assets within
the next few years without adding any additional sales force or branch offices,
however. He also indicated that Pinnacle has the capacity to enter other urban
markets in Tennessee, but that management has no current plans to enter those
markets. Turner stated that management views its acquisition of key people with
deep ties to the local market to be the principal reason for its rapid growth in
Nashville and that the availability of such people in other markets would be a
catalyst to accelerate entry into those markets.
For its existing Nashville franchise, management has developed several
financial forecast scenarios for the next several quarters. Based on anticipated
growth trends and future investments in the franchise, Pinnacle estimates its
2004 diluted earnings per share will approximate $0.60 to $0.62. Pinnacle also
estimates diluted earnings per share for the year ending December 31, 2005, to
be $0.82 to $0.88. Additionally, Pinnacle is estimating that its ending total
asset balances will approximate $900 million by the end of 2005 through organic
growth. As noted previously, management has developed several scenarios under
which these estimates can be achieved and believes these estimates to be
reasonable based on these scenarios. However, unanticipated events or
developments, including the execution of any initiative involving the
development of any market other than the current Nashville franchise, the
opportunity to hire more seasoned professionals than anticipated or to grow
loans significantly in excess of the levels contemplated, may cause the actual
results of Pinnacle to differ materially from these estimates. Additionally, the
estimates are exclusive of compensation expenses related to the expensing of
incentive stock options that have been and may be granted to employees under the
firm's broad-based stock option plans. Management continues to follow the
ongoing debate between the various accounting rule-making bodies and others
related to these matters.
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 opened its first office in October 2000 in Commerce Center in
Downtown Nashville. Since then the firm has added Nashville offices in the
Rivergate, Green Hills and West End areas and offices in Brentwood and the Cool
Springs areas of Williamson County.
Additional information concerning Pinnacle can be accessed at
www.mypinnacle.com.
Pinnacle Reports Continued Growth - 5 of 5
###
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
========================================================================================================
SEPTEMBER 30, DECEMBER 31,
2004 2003
- --------------------------------------------------------------------------------------------------------
ASSETS
Cash and noninterest-bearing due from banks ..................$ 16,379,311 $ 13,768,278
Interest-bearing due from banks............................... 750,486 1,180,371
Federal funds sold............................................ 20,986,729 32,235,401
-------------- -------------
Cash and cash equivalents................................ 38,116,526 47,184,050
Securities available-for-sale, at fair value ................. 163,706,737 139,944,238
Securities held-to-maturity (fair value of $27,269,419)....... 27,616,118 -
Mortgage loans held-for-sale.................................. 5,002,120 1,582,600
Loans ........................................................ 434,908,936 297,004,110
Less allowance for loan losses ............................... (5,434,116) (3,718,598)
-------------- -------------
Loans, net............................................... 429,474,820 293,285,512
Premises and equipment, net .................................. 9,603,983 6,911,359
Other assets ................................................. 11,887,455 9,512,899
-------------- -------------
Total assets.........................................$ 685,407,759 $ 498,420,658
============== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand ..............................$ 107,469,555 $ 60,796,396
Interest-bearing demand ................................. 42,669,930 31,407,213
Savings and money market accounts........................ 195,082,489 140,383,878
Time .................................................... 196,637,523 157,981,525
-------------- -------------
Total deposits ...................................... 541,859,497 390,569,012
Securities sold under agreements to repurchase................ 22,958,038 15,050,110
Federal Home Loan Bank advances............................... 51,500,000 44,500,000
Subordinated debt............................................. 10,310,000 10,310,000
Other liabilities ............................................ 2,112,488 3,655,155
-------------- -------------
Total liabilities.................................... 628,740,023 464,084,277
Stockholders' equity:
Preferred stock, no par value; 10,000,000 shares
authorized; no shares issued and outstanding......... - -
Common stock, par value $1.00; 20,000,000 shares
authorized; 8,389,232 issued and outstanding
at September 30, 2004 and 7,384,106 issued and
outstanding at December 31, 2003..................... 8,389,232 7,384,106
Additional paid-in capital............................... 44,376,307 26,990,894
Unearned compensation.................................... (59,750) -
Retained earnings (accumulated deficit).................. 3,440,875 (189,155)
Accumulated other comprehensive income, net ............. 521,072 150,536
-------------- -------------
Total stockholders' equity .......................... 56,667,736 34,336,381
-------------- -------------
Total liabilities and stockholders' equity...........$ 685,407,759 $ 498,420,658
============== =============
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
===========================================================================================================================
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2004 2003 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------
INTEREST INCOME:
Loans, including fees ...................................$ 5,172,042 $ 3,674,712 $ 13,624,552 $ 9,995,068
Securities, available-for-sale
Taxable............................................. 1,840,366 918,112 4,946,370 2,756,584
Tax-exempt.......................................... 124,780 57,875 309,765 138,262
Federal funds sold and other ............................ 76,563 51,895 224,644 127,996
----------- ---------- ----------- -----------
Total interest income ............................... 7,213,751 4,702,594 19,105,331 13,017,910
----------- ---------- ----------- -----------
INTEREST EXPENSE:
Deposits ................................................ 1,493,652 1,069,381 3,992,890 3,261,641
Securities sold under agreements to repurchase........... 33,417 15,267 54,090 42,233
Federal funds purchased and other borrowings............. 388,311 232,615 1,071,873 707,803
----------- ---------- ----------- -----------
Total interest expense .............................. 1,915,380 1,317,263 5,118,853 4,011,677
----------- ---------- ----------- -----------
Net interest income ................................. 5,298,371 3,385,331 13,986,478 9,006,233
PROVISION FOR LOAN LOSSES .................................... 1,012,000 318,068 1,814,322 953,360
----------- ---------- ----------- -----------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES .......... 4,286,371 3,067,263 12,172,156 8,052,873
NONINTEREST INCOME:
Service charges on deposit accounts...................... 311,372 137,097 706,425 359,211
Investment services...................................... 464,468 324,663 1,258,563 656,888
Fees from origination of mortgage loans.................. 418,760 244,912 876,582 489,005
Gain on loans and loan participations sold(1)............ 219,214 75,238 457,292 201,466
Gain on sale of investment securities, net............... 108,843 113,707 357,196 247,978
Other noninterest income ................................ 155,382 128,860 430,220 409,158
----------- ---------- ----------- -----------
Total noninterest income ............................ 1,678,039 1,024,477 4,086,278 2,363,706
----------- ---------- --------- -----------
NONINTEREST EXPENSE:
Compensation and employee benefits ...................... 2,541,062 1,882,344 7,128,167 5,010,942
Equipment and occupancy ................................. 587,649 480,216 1,628,392 1,323,002
Marketing and other business development................. 157,894 84,570 462,843 263,834
Administrative .......................................... 389,577 177,812 925,984 491,465
Postage and supplies .................................... 154,042 93,676 377,306 273,167
Other noninterest expense................................ 173,756 145,335 507,933 418,835
----------- ---------- ----------- -----------
Total noninterest expense ........................... 4,003,980 2,863,953 11,030,625 7,781,245
----------- ---------- ----------- -----------
INCOME BEFORE INCOME TAXES ................................... 1,960,430 1,227,787 5,227,809 2,635,334
Income tax expense....................................... 569,897 441,218 1,597,779 938,920
----------- ---------- ----------- -----------
NET INCOME ...................................................$ 1,390,533 $ 786,569 $ 3,630,030 $ 1,696,414
=========== ========== =========== ===========
PER SHARE INFORMATION (2):
Basic net income per common share........................$ 0.18 $ 0.11 $ 0.48 $ 0.23
=========== ========== =========== ===========
Diluted net income per common share......................$ 0.16 $ 0.10 $ 0.43 $ 0.22
=========== ========== =========== ===========
Weighted average shares outstanding:
Basic .............................................. 7,832,512 7,384,106 7,537,856 7,384,106
Diluted ............................................ 8,857,015 7,944,654 8,451,439 7,796,400
- ----------
(1) During the third quarter of 2004, the company recognized $280,000 in gains
from the sale of a single loan.
(2) On April 20, 2004, the Board of Directors of Pinnacle Financial approved a
two for one stock split of Pinnacle's common stock payable as a 100% stock
dividend on May 10, 2004 to shareholders of record on April 30, 2004.
Pinnacle Financial has retroactively applied the impact of this stock split
in these financial statements.
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED
==========================================================================================================================
(DOLLARS IN THOUSANDS, SEPT JUNE MAR DEC SEPT JUNE
EXCEPT PER SHARE DATA) 2004 2004 2004 2003 2003 2003
- --------------------------------------------------------------------------------------------------------------------------
BALANCE SHEET DATA, AT QUARTER END:
Total assets......................$ 685,408 586,313 541,052 498,421 440,693 403,229
Total loans....................... 434,909 355,267 323,416 297,004 279,702 255,448
Allowance for loan losses......... (5,434) (4,466) (4,042) (3,719) (3,492) (3,189)
Securities........................ 191,323 165,528 162,315 139,944 115,421 99,968
Total deposits.................... 541,859 467,321 437,601 390,569 347,191 309,089
Securities sold under agreements
to repurchase................ 22,958 23,772 14,699 15,050 19,291 17,803
Advances from FHLB................ 51,500 47,500 40,500 44,500 39,500 41,500
Subordinated debt................. 10,310 10,310 10,310 10,310 - -
Total stockholders' equity........ 56,668 35,125 36,266 34,336 33,245 33,627
BALANCE SHEET DATA, QUARTERLY AVERAGES:
Total assets......................$ 618,694 555,437 508,260 454,700 406,142 365,385
Total loans....................... 392,220 343,974 306,549 283,387 269,703 245,383
Securities........................ 183,721 169,192 149,802 137,243 107,162 95,351
Total earning assets.............. 589,554 527,070 482,572 432,691 386,823 347,671
Total deposits.................... 400,218 439,964 402,603 356,030 314,302 277,592
Securities sold under agreements
to repurchase................ 25,953 17,523 14,868 16,013 16,136 11,728
Advances from FHLB................ 49,000 45,736 42,379 43,630 40,239 38,137
Subordinated debt................. 10,310 10,310 10,310 655 - -
Total stockholders' equity........ 43,868 35,542 35,705 33,935 32,542 32,944
STATEMENT OF OPERATIONS DATA, FOR THE THREE MONTHS ENDED:
Interest income...................$ 7,214 6,225 5,666 5,244 4,702 4,369
Interest expense.................. 1,915 1,689 1,514 1,351 1,317 1,385
------- ------- ------- ------- ------ -------
Net interest income............. 5,299 4,536 4,152 3,893 3,385 2,984
Provision for loan losses......... 1,012 449 354 204 318 347
------- ------- ------- ------- ------ -------
Net interest income after
provision for loan losses....... 4,287 4,087 3,798 3,689 3,067 2,637
Noninterest income................ 1,678 1,183 1,225 924 1,024 877
Noninterest expense............... 4,004 3,615 3,412 3,268 2,863 2,675
------- ------- ------- ------- ------ -------
Income before taxes............ 1,961 1,655 1,611 1,345 1,228 839
Income tax expense.............. 570 487 540 487 441 302
------- ------- ------- ------- ------ -------
Net income.....................$ 1,391 1,168 1,071 858 787 537
======= ======= ======= ======= ====== =======
PER SHARE DATA:
Earnings - basic..................$ 0.18 0.16 0.15 0.12 0.11 0.07
Earnings - diluted................$ 0.16 0.14 0.13 0.11 0.10 0.07
Book value at quarter end (1).....$ 6.75 4.74 4.91 4.65 4.50 4.55
Weighted avg. shares - basic...... 7,832,512 7,397,920 7,384,106 7,384,106 7,384,106 7,384,106
Weighted avg. shares - diluted.... 8,857,015 8,279,114 8,213,730 8,114,888 7,944,654 7,761,284
Common shares outstanding......... 8,389,232 7,404,586 7,384,106 7,384,106 7,384,106 7,384,106
CAPITAL RATIOS (2):
Equity to total assets............ 8.3% 6.0% 6.7% 6.8% 7.5% 8.3%
Leverage.......................... 10.9% 8.4% 9.0% 10.5% 8.2% 8.9%
Tier 1 risk-based................. 12.4% 10.2% 11.2% 11.8% 9.6% 10.6%
Total risk-based.................. 13.4% 11.2% 12.1% 12.8% 10.6% 11.7%
....................
- ----------
(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, SEPT JUNE MAR DEC SEPT JUNE
EXCEPT PER SHARE DATA) 2004 2004 2004 2003 2003 2003
- --------------------------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS AND OTHER DATA:
Return on average assets.......... 0.89% 0.82% 0.85% 0.75% 0.77% 0.59%
Return on average stockholders'
equity....................... 12.58% 12.83% 12.03% 10.02% 9.59% 6.54%
Net interest margin (3)........... 3.62% 3.51% 3.49% 3.62% 3.51% 3.48%
Noninterest income to total
revenue (4) 24.1% 20.7% 22.8% 19.2% 23.2% 22.7%
Noninterest income to avg. assets. 1.08% 0.85% 0.97% 0.81% 1.00% 0.96%
Noninterest exp. to avg. assets... 2.57% 2.61% 2.69% 2.85% 2.80% 2.94%
Efficiency ratio (5).............. 57.4% 63.2% 63.5% 67.9% 65.0% 69.3%
Avg. loans to average deposits.... 80.8% 78.2% 76.6% 80.2% 85.7% 88.4%
Securities to total assets........ 27.9% 28.2% 30.0% 28.1% 26.2% 24.8%
Average interest-earning assets to
average interest-bearing
liabilities.................. 121.0% 118.3% 118.1% 118.7% 118.8% 118.9%
Brokered time deposits to total
deposits..................... 8.2% 8.8% 8.2% 9.9% 11.2% 15.6%
ASSET QUALITY INFORMATION AND RATIOS:
Nonaccrual loans..................$ 1,332 1,339 86 379 1,095 1,095
...........................
Past due loans over 90 days and
still accruing interest......$ 95 35 64 182 88 60
Net loan charge-offs (recoveries).$ 43 25 30 (23) 15 18
Allowance for loan losses to total
loans........................ 1.25% 1.26% 1.25% 1.25% 1.25% 1.25%
Nonperforming assets to total
loans and ORE................ 0.31% 0.38% 0.03% 0.13% 0.39% 0.43%
Annualized net loan charge-offs
(recoveries) to average loans. 0.04% 0.03% 0.04% (0.02)% 0.02% 0.03%
Avg. commercial loan internal risk
ratings (6)................... 3.8 3.9 3.9 4.0 3.9 3.9
Avg. loan account balances (7)....$ 157 149 147 153 150 155
INTEREST RATES AND YIELDS:
Loans............................. 5.25% 5.27% 5.14% 5.17% 5.41% 5.49%
Securities........................ 4.26% 3.93% 4.38% 4.31% 3.65% 4.14%
Federal funds sold and other...... 2.50% 2.20% 1.47% 2.26% 2.28% 2.60%
Total earning assets.............. 4.90% 4.78% 4.73% 4.83% 4.84% 5.06%
Total deposits, including non-
interest bearing............. 1.22% 1.21% 1.17% 1.21% 1.35% 1.62%
Securities sold under agreements
to repurchase................ 0.51% 0.26% 0.25% 0.58% 0.38% 0.42%
Federal funds purchased and FHLB
advances..................... 2.14% 2.08% 2.19% 2.05% 2.23% 2.44%
Subordinated debt................. 4.58% 3.54% 3.98% 3.98% - -
Total deposits and other interest-
bearing liabilities.......... 1.33% 1.31% 1.29% 1.28% 1.40% 1.68%
- ----------
(3) Net interest margin is the result of net interest income on a tax
equivalent basis divided by average interest earning assets. Included in
the third quarter of 2004 net interest income was $80,000 in income
related to the liquidation of a particular borrower's assets. Excluding
this transaction the net interest margin for the Company for the third
quarter of 2004 would have approximated 3.54%.
(4) Total revenue is equal to the sum of net interest income and noninterest
income.
(5) Efficiency ratio is calculated by dividing noninterest expense by the sum
of net interest income and noninterest income.
(6) Average risk ratings are based on an internal loan review system which
assigns a numeric value of 1 to 10 to all loans to commercial entities
based on their underlying risk characteristics as of the end of each
quarter. A "1" risk rating is assigned to credits that exhibit Excellent
risk characteristics, "2" exhibit Very Good risk characteristics, "3" Good,
"4" Satisfactory, "5" Acceptable or Average, "6" Watch List, "7"
Criticized, "8" Classified or Substandard, "9" Doubtful and "10" Loss
(which are charged-off immediately). Loans rated "8" or worse are
considered potential problem credits. Generally, consumer loans are not
subjected to internal risk ratings.
(7) Computed by dividing the balance of all loans by the number of loan
accounts as of the end of each quarter.
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED
==========================================================================================================================
(DOLLARS IN THOUSANDS, SEPT JUNE MAR DEC SEPT JUNE
EXCEPT PER SHARE DATA) 2004 2004 2004 2003 2003 2003
- --------------------------------------------------------------------------------------------------------------------------
INVESTOR INFORMATION:
Closing sales price...............$ 21.50 18.30 15.25 11.75 9.88 7.98
High sales price during quarter...$ 23.70 18.67 15.50 12.95 9.97 8.50
Low sales price during quarter....$ 17.70 13.50 11.65 9.68 8.00 6.53
OTHER INFORMATION:
Mortgage loan originations........$ 22,382 16,061 10,845 10,148 14,742 11,388
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Fees from origination of mortgage
loans........................$ 419 266 192 178 245 198
Fees from origination of mortgage
loans to mortgage loan
originations................. 1.87% 1.66% 1.77% 1.75% 1.66% 1.74%
Gains on sales of investment
securities, net..............$ 109 - 248 - 114 117
Brokerage account assets, at
quarter-end (8)..............$ 368,000 344,000 351,000 319,000 247,000 202,000
Floating rate loans (9) as a
percentage of total loans.... 55.8% 52.5% 52.4% 52.7% 53.7% 51.7%
Balance of loan participations sold
to other banks and serviced by
Pinnacle, at quarter end.....$ 53,343 58,530 54,772 51,653 45,981 44,355
Total core deposits (10).......... 61.8% 59.8% 62.8% 60.1% 55.5% 55.5%
Total assets per full-time equivalent
employee.....................$ 5,909 5,776 5,695 5,569 5,474 5,486
Annualized revenues per full-time
equivalent employee..........$ 240.6 225.4 226.4 215.3 211.2 210.1
Number of employees (full-time
equivalent).................. 116.0 101.5 95.0 89.5 83.5 73.5
Associate retention rate (11)..... 97.4% 97.5% 97.4% 96.1% 95.7% 94.6%
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(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.