EX-99.1 2 g90035exv99w1.txt EX-99.1 PRESS RELEASE 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.