FOR IMMEDIATE RELEASE
|
|
MEDIA CONTACT:
|
Nikki Klemmer, 615-743-6132
|
|
|
FINANCIAL CONTACT:
|
Harold Carpenter, 615-744-3742
|
|
|
WEBSITE:
|
www.pnfp.com
|
PNFP REPORTS DOUBLE-DIGIT ANNUALIZED GROWTH IN EPS, LOANS AND DDAs
Operating leverage provides continued improvement to ROAA and ROTCE
NASHVILLE, Tenn., July 15, 2014 – Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) today reported net income per fully diluted common share of $0.49 for the quarter ended June 30, 2014, compared to net income per fully diluted common share of $0.42 for the quarter ended June 30, 2013, an increase of 16.7 percent. Net income per fully diluted common share was $0.96 for the six months ended June 30, 2014, compared to net income per fully diluted common share of $0.81 for the six months ended June 30, 2013, an increase of 18.5 percent.
"Second quarter was another strong quarter of continued execution as we generated meaningful operating leverage primarily through loan and demand deposit account growth," said M. Terry Turner, Pinnacle's president and chief executive officer. "Our return on average assets increased to 1.21 percent, representing another all-time high. Loan growth approximated $134 million during the second quarter, which equates to an annualized linked-quarter growth rate of 12.8 percent. Importantly, we experienced another strong quarter of growth in demand deposits, which is consistent with the success we continue to have moving client relationships to our firm."
GROWING THE CORE EARNINGS CAPACITY OF THE FIRM:
| · | Loans at June 30, 2014 were a record $4.315 billion, an increase of $133.9 million from March 31, 2014. Loans increased $390.2 million from June 30, 2013, a year-over-year growth rate of 9.9 percent. |
| · | Average balances of noninterest-bearing deposit accounts were $1.203 billion in the second quarter of 2014, which represents an annualized growth rate of 26.2 percent from the first quarter of 2014. Noninterest-bearing deposit accounts represented approximately 26.6 percent of total average deposit balances for the quarter. Second quarter 2014 average noninterest-bearing deposits increased 18.8 percent over the same quarter last year, when average noninterest-bearing deposit accounts amounted to 25.6 percent of total average deposits. |
| · | Revenues for the quarter ended June 30, 2014 were a record $59.8 million, an increase of $1.2 million from $58.6 million in the first quarter of 2014. Revenues increased 8.9 percent from $54.9 million for the same quarter last year. |
| · | Return on average assets was 1.21 percent for the second quarter of 2014, compared to 1.20 percent for the first quarter of 2014 and 1.10 percent for the same quarter last year. Second quarter 2014 return on tangible common equity amounted to 13.50 percent, compared to 13.45 percent for the first quarter of 2014 and 12.72 percent for the same quarter last year. |
"We remain very pleased with our ability to grow our client base and take market share in Nashville and Knoxville," Turner said. "With the significant loan growth we experienced in the second quarter, we continue to believe we will meet or exceed the three-year loan growth targets we established for the period of 2012 to 2014. Our ability to grow our noninterest-bearing deposits has been instrumental in enabling us to increase our net interest income and provides further evidence of the effectiveness of our business model."
OTHER SECOND QUARTER 2014 HIGHLIGHTS:
| · | Revenue growth |
|
o
|
Net interest income for the quarter ended June 30, 2014 was $47.2 million, compared to $45.9 million in the first quarter of 2014 and $43.6 million for the second quarter of 2013.
|
|
§
|
Consistent with previously disclosed expectations, the firm's net interest margin decreased to 3.71 percent for the quarter ended June 30, 2014, down from 3.76 percent last quarter and 3.77 percent for the quarter ended June 30, 2013.
|
| o | Noninterest income for the quarter ended June 30, 2014 was $12.6 million, compared to $12.7 million for the first quarter of 2014 and $11.3 million for the same quarter last year. |
|
§
|
Wealth management revenues, which include investment services, insurance and trust fees, were down $278,000 from the first quarter of 2014 due primarily to the seasonal collection of contingency revenues from insurance carriers in the first quarter of 2014.
|
| § | Gains on mortgage loans sold, net of commissions, were up $434,000 from the first quarter of 2014 due primarily to stronger home sales in Pinnacle's residential lending markets. |
|
§
|
Other fees decreased by $466,000 between the second and first quarters of 2014 due to several factors, including a reduction in vendor rebates for customer check orders, reduced gains from loan sales and other investments.
|
"Operationally, we had another very sound quarter," said Harold R. Carpenter, Pinnacle's chief financial officer. "Total revenues are up almost $1.18 million over the first quarter. Loan yields decreased a modest 0.03 percent during the quarter and were partially offset by a 0.02 percent decrease in cost of funds. We continue to believe the rate of decrease in both loan yields and deposit costs will likely slow in future quarters. We also remain optimistic that our net interest margin will remain within our targeted range of 3.70 percent to 3.80 percent as we continue to see growth in net interest income for the remainder of 2014."
| · | Noninterest expense |
|
o
|
Noninterest expense for the quarter ended June 30, 2014 was $33.9 million, compared to $33.6 million in the first quarter of 2014 and $30.9 million in the same quarter last year.
|
| § | Salaries and employee benefit costs were up from the first quarter of 2014 by approximately $23,000 and $1.2 million from the second quarter of 2013. |
| § | Other real estate expenses were $226,000 in the second quarter of 2014, compared to $651,000 in the first quarter of 2014 and $1.4 million in the same quarter last year. |
|
§
|
Other noninterest expense increased by $405,000 in the second quarter of 2014 compared to the first quarter of 2014 primarily due to increased lending-related costs. Additionally, other noninterest expense increased by $2.29 million between the second quarter of 2013 and 2014 primarily due to the impact of a $2.0 million reversal in 2013 of previously expensed off-balance sheet loss reserves.
|
2
"Building a firm that attracts and retains the most successful relationship managers in our markets is a key component of our growth strategy," Carpenter said. "Nine new revenue producers have joined our firm in 2014, representing a continual investment in growing our customer base and increasing our market share.
"Increasing the operating leverage of our firm remains a key objective of our leadership. We anticipate our expense base for the remainder of 2014 will experience modest increases as we continue to recruit relationship managers and other professionals. The ratio of noninterest expense (excluding ORE expense) to average assets was 2.38 percent in the second quarter. We expect to make continual progress toward our target range of 2.10 to 2.30 percent for 'noninterest expense (excluding ORE expense) to average assets' in 2014 primarily through achievement of our loan growth targets."
| · | Asset Quality |
| o | Nonperforming assets declined from $30.6 million at March 31, 2014 to $28.6 million at June 30, 2014, a 6.6 percent reduction. Nonperforming assets were 0.66 percent of total loans and ORE at June 30, 2014, compared to 0.73 percent at March 31, 2014 and 0.93 percent at June 30, 2013. |
| o | The allowance for loan losses represented 1.55 percent of total loans at June 30, 2014, compared to 1.61 percent at March 31, 2014 and 1.75 percent at June 30, 2014. The ratio of the allowance for loan losses to nonperforming loans was 426.6 percent at June 30, 2014, compared to 432.7 percent at March 31, 2014 and 334.1 percent at June 30, 2013. |
| § | Net charge-offs were $890,000 for the quarter ended June 30, 2014, compared to $934,000 for the first quarter of 2014 and $3.5 million for the quarter ended June 30, 2013. Annualized year-to-date net charge-offs as a percentage of average loans for the quarter ended June 30, 2014 were 0.09 percent compared to 0.30 percent for the quarter ended June 30, 2013. |
| § | Provision for loan losses decreased from $2.77 million for the second quarter of 2013 to $254,000 for the second quarter of 2014. The provision was $488,000 for the first quarter of 2014. |
"Asset quality continues to be a strength for our firm with further reductions in potential problem loans, nonperforming assets and net charge-offs during the second quarter," Carpenter said. "We expect that the quality of our loan portfolio should improve and thus continue to provide additional credit leverage for the remainder of 2014 as well as 2015."
3
BOARD OF DIRECTORS DECLARES DIVIDEND
On July 15, 2014, Pinnacle's Board of Directors also declared an $0.08 per share cash dividend to be paid on Aug. 29, 2014 to common shareholders of record as of the close of business on Aug. 8, 2014. The amount and timing of any future dividend payments to common shareholders will be subject to the discretion of Pinnacle's Board of Directors.
4
Pinnacle will host a webcast and conference call at 8:30 a.m. (CDT) on July 16, 2014 to discuss second quarter 2014 results and other matters. To access the call for audio only, please call 1-877-602-7944. For the presentation and streaming audio, please access the webcast on the investor relations page of Pinnacle's website at www.pnfp.com.
For those unable to participate in the webcast, it will be archived on the investor relations page of Pinnacle's website at www.pnfp.com for 90 days following the presentation.
Pinnacle Financial Partners provides a full range of banking, investment, trust, mortgage and insurance products and services designed for businesses and their owners and individuals interested in a comprehensive relationship with their financial institution.
The firm began operations in a single downtown Nashville location in October 2000 and has since grown to approximately $5.8 billion in assets at June 30, 2014. At June 30, 2014, Pinnacle is the second-largest bank holding company headquartered in Tennessee, with 29 offices in eight Middle Tennessee counties and four offices in Knoxville. Additionally, Great Place to Work® named Pinnacle one of the best workplaces in the United States on its 2013 Best Small & Medium Workplaces list published in FORTUNE magazine. The American Banker also recognized Pinnacle as the best bank to work for in the country.
Additional information concerning Pinnacle, which is included in the NASDAQ Financial-100 Index, can be accessed at www.pnfp.com.
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, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "expect," "anticipate," "goal," "objective," "intend," "plan," "believe," "should," "seek," "estimate" and similar expressions are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking. All forward-looking statements are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of Pinnacle Financial to differ materially from any results expressed or implied by such forward-looking statements. Such risks include, without limitation, (i) deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses; (ii) continuation of the historically low short-term interest rate environment; (iii) the inability of Pinnacle Financial to grow its loan portfolio; (iv) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (v) effectiveness of Pinnacle Financial's asset management activities in improving, resolving or liquidating lower-quality assets; (vi) increased competition with other financial institutions; (vii) greater than anticipated adverse conditions in the national or local economies including the Nashville-Davidson-Murfreesboro-Franklin MSA and the Knoxville MSA, particularly in commercial and residential real estate markets; (viii) rapid fluctuations or unanticipated changes in interest rates on loans or deposits; (ix) the results of regulatory examinations; (x) the ability to retain large, uninsured deposits; (xi) the development of any new market other than Nashville or Knoxville; (xii) a merger or acquisition; (xiii) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including intangible assets; (xiv) the ability to attract additional financial advisors or to attract customers from other financial institutions; (xv) further deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xvi) inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies and required capital maintenance levels; (xvii) risks associated with litigation, including the applicability of insurance coverage; (xviii) approval of the declaration of any dividend by Pinnacle Financial's board of directors and (xix) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, including regulatory or legislative developments arising out of current unsettled conditions in the economy, including implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act. A more detailed description of these and other risks is contained in Pinnacle Financial's most recent annual report on Form 10-K filed with the Securities and Exchange Commission on February 25, 2014. 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 release, whether as a result of new information, future events or otherwise.
6
|
CONSOLIDATED BALANCE SHEETS – UNAUDITED
|
|||||||||
|
|
|||||||||
|
|
June 30, 2014
|
March 31, 2014
|
December 31, 2013
|
||||||
|
ASSETS
|
|||||||||
|
Cash and noninterest-bearing due from banks
|
$
|
91,575,519
|
$
|
94,172,230
|
$
|
79,785,004
|
|||
|
Interest-bearing due from banks
|
114,865,408
|
75,826,385
|
124,509,486
|
||||||
|
Federal funds sold and other
|
4,667,086
|
938,792
|
4,644,247
|
||||||
|
Cash and cash equivalents
|
211,108,013
|
170,937,407
|
208,938,737
|
||||||
|
|
|||||||||
|
Securities available-for-sale, at fair value
|
743,528,294
|
735,400,911
|
693,456,314
|
||||||
|
Securities held-to-maturity (fair value of $38,290,464, $38,194,567
|
|||||||||
|
and $38,817,467 at June 30, 2014, March 31, 2014
|
|||||||||
| and December 31, 2013, respectively) |
38,537,545
|
38,733,099
|
39,795,649
|
||||||
|
Mortgage loans held-for-sale
|
24,591,553
|
13,970,926
|
12,850,339
|
||||||
|
|
|||||||||
|
Loans
|
4,315,561,552
|
4,181,686,799
|
4,144,493,486
|
||||||
|
Less allowance for loan losses
|
(66,888,250
|
)
|
(67,523,575
|
)
|
(67,969,693
|
)
|
|||
|
Loans, net
|
4,248,673,302
|
4,114,163,224
|
4,076,523,793
|
||||||
|
|
|||||||||
|
Premises and equipment, net
|
72,534,086
|
71,627,370
|
72,649,574
|
||||||
|
Other investments
|
33,496,695
|
33,358,506
|
33,226,195
|
||||||
|
Accrued interest receivable
|
15,921,099
|
17,219,090
|
15,406,389
|
||||||
|
Goodwill
|
243,550,227
|
243,568,203
|
243,651,006
|
||||||
|
Core deposit and other intangible assets
|
3,365,399
|
3,603,074
|
3,840,750
|
||||||
|
Other real estate owned
|
12,946,465
|
15,037,823
|
15,226,136
|
||||||
|
Other assets
|
140,538,915
|
143,312,957
|
148,210,975
|
||||||
|
Total assets
|
$
|
5,788,791,593
|
$
|
5,600,932,590
|
$
|
5,563,775,857
|
|||
|
|
|||||||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|||||||||
|
Deposits:
|
|||||||||
|
Noninterest-bearing
|
$
|
1,324,358,420
|
$
|
1,180,202,107
|
$
|
1,167,414,487
|
|||
|
Interest-bearing
|
900,576,170
|
912,387,013
|
884,294,802
|
||||||
|
Savings and money market accounts
|
1,950,235,361
|
1,902,452,916
|
1,962,714,398
|
||||||
|
Time
|
476,343,393
|
505,534,750
|
519,049,037
|
||||||
|
Total deposits
|
4,651,513,344
|
4,500,576,786
|
4,533,472,724
|
||||||
|
Securities sold under agreements to repurchase
|
62,272,670
|
68,092,650
|
70,465,326
|
||||||
|
Federal Home Loan Bank advances
|
170,556,327
|
150,604,286
|
90,637,328
|
||||||
|
Subordinated debt and other borrowings
|
97,408,292
|
98,033,292
|
98,658,292
|
||||||
|
Accrued interest payable
|
661,273
|
745,180
|
792,703
|
||||||
|
Other liabilities
|
41,997,702
|
40,383,743
|
46,041,823
|
||||||
|
Total liabilities
|
5,024,409,608
|
4,858,435,937
|
4,840,068,196
|
||||||
|
|
|||||||||
|
Stockholders' equity:
|
|||||||||
|
Preferred stock, no par value; 10,000,000 shares authorized;
|
|||||||||
|
no shares issued and outstanding
|
-
|
-
|
-
|
||||||
|
Common stock, par value $1.00; 90,000,000 shares authorized;
|
|||||||||
|
35,601,495 shares, 35,567,268 shares and 35,221,941 shares
|
|||||||||
|
issued and outstanding at June 30, 2014, March 31, 2014
|
|||||||||
|
and December 31, 2013, respectively
|
35,601,495
|
35,567,268
|
35,221,941
|
||||||
|
Additional paid-in capital
|
555,428,349
|
551,461,564
|
550,212,135
|
||||||
|
Retained earnings
|
170,155,642
|
155,840,829
|
142,298,199
|
||||||
|
Accumulated other comprehensive income (loss), net of taxes
|
3,196,499
|
(373,008
|
)
|
(4,024,614
|
)
|
||||
|
Stockholders' equity
|
764,381,985
|
742,496,653
|
723,707,661
|
||||||
|
Total liabilities and stockholders' equity
|
$
|
5,788,791,593
|
$
|
5,600,932,590
|
$
|
5,563,775,857
|
|||
|
|
|||||||||
|
This information is preliminary and based on company data available at the time of the presentation.
|
|||||||||
7
|
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED
|
||||||||||||||||||||
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||
|
|
June 30,
|
March 31,
|
June 30,
|
June 30,
|
||||||||||||||||
|
|
2014
|
2014
|
2013
|
2014
|
2013
|
|||||||||||||||
|
Interest income:
|
||||||||||||||||||||
|
Loans, including fees
|
$
|
45,089,706
|
$
|
43,695,658
|
$
|
42,149,149
|
$
|
88,785,364
|
$
|
83,663,362
|
||||||||||
|
Securities
|
||||||||||||||||||||
|
Taxable
|
3,628,264
|
3,720,279
|
3,650,766
|
7,348,543
|
7,321,700
|
|||||||||||||||
|
Tax-exempt
|
1,563,612
|
1,597,797
|
1,483,965
|
3,161,409
|
3,140,373
|
|||||||||||||||
|
Federal funds sold and other
|
282,822
|
277,058
|
260,440
|
559,880
|
575,212
|
|||||||||||||||
|
Total interest income
|
50,564,404
|
49,290,792
|
47,544,320
|
99,855,196
|
94,700,647
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Interest expense:
|
||||||||||||||||||||
|
Deposits
|
2,481,762
|
2,595,240
|
2,955,985
|
5,077,002
|
6,368,381
|
|||||||||||||||
|
Securities sold under agreements to repurchase
|
31,329
|
30,515
|
70,823
|
61,844
|
148,639
|
|||||||||||||||
|
Federal Home Loan Bank advances and other borrowings
|
824,912
|
757,222
|
918,762
|
1,582,134
|
1,826,403
|
|||||||||||||||
|
Total interest expense
|
3,338,003
|
3,382,977
|
3,945,570
|
6,720,980
|
8,343,423
|
|||||||||||||||
|
Net interest income
|
47,226,401
|
45,907,815
|
43,598,750
|
93,134,216
|
86,357,224
|
|||||||||||||||
|
Provision for loan losses
|
254,348
|
487,638
|
2,774,048
|
741,986
|
4,946,452
|
|||||||||||||||
|
Net interest income after provision for loan losses
|
46,972,053
|
45,420,177
|
40,824,702
|
92,392,230
|
81,410,772
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Noninterest income:
|
||||||||||||||||||||
|
Service charges on deposit accounts
|
2,965,644
|
2,790,968
|
2,540,866
|
5,756,612
|
5,021,110
|
|||||||||||||||
|
Investment services
|
2,164,410
|
2,127,834
|
1,895,398
|
4,292,244
|
3,688,038
|
|||||||||||||||
|
Insurance sales commissions
|
1,144,871
|
1,384,921
|
1,107,696
|
2,529,792
|
2,501,000
|
|||||||||||||||
|
Gains on mortgage loans sold, net
|
1,668,604
|
1,234,872
|
1,948,531
|
2,903,475
|
3,803,942
|
|||||||||||||||
|
Investment losses on sales, net
|
-
|
-
|
(25,241
|
)
|
-
|
(25,241
|
)
|
|||||||||||||
|
Trust fees
|
1,071,848
|
1,145,751
|
880,204
|
2,217,599
|
1,824,536
|
|||||||||||||||
|
Other noninterest income
|
3,582,067
|
4,048,017
|
2,978,266
|
7,630,084
|
6,414,691
|
|||||||||||||||
|
Total noninterest income
|
12,597,444
|
12,732,363
|
11,325,720
|
25,329,806
|
23,228,076
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Noninterest expense:
|
||||||||||||||||||||
|
Salaries and employee benefits
|
21,772,469
|
21,749,960
|
20,570,753
|
43,522,429
|
40,143,109
|
|||||||||||||||
|
Equipment and occupancy
|
5,822,662
|
5,709,030
|
5,204,159
|
11,531,692
|
10,317,209
|
|||||||||||||||
|
Other real estate expense
|
226,006
|
651,152
|
1,390,606
|
877,158
|
2,111,568
|
|||||||||||||||
|
Marketing and other business development
|
1,064,990
|
908,901
|
987,171
|
1,973,891
|
1,777,842
|
|||||||||||||||
|
Postage and supplies
|
544,194
|
560,614
|
517,667
|
1,104,808
|
1,109,155
|
|||||||||||||||
|
Amortization of intangibles
|
237,676
|
237,675
|
248,186
|
475,351
|
769,173
|
|||||||||||||||
|
Other noninterest expense
|
4,233,931
|
3,828,528
|
1,943,190
|
8,062,459
|
7,073,683
|
|||||||||||||||
|
Total noninterest expense
|
33,901,928
|
33,645,860
|
30,861,732
|
67,547,788
|
63,301,739
|
|||||||||||||||
|
Income before income taxes
|
25,667,569
|
24,506,680
|
21,288,690
|
50,174,248
|
41,337,109
|
|||||||||||||||
|
Income tax expense
|
8,497,589
|
8,139,557
|
6,978,160
|
16,637,146
|
13,578,452
|
|||||||||||||||
|
Net income
|
$
|
17,169,980
|
$
|
16,367,123
|
$
|
14,310,530
|
$
|
33,537,102
|
$
|
27,758,657
|
||||||||||
|
|
||||||||||||||||||||
|
Per share information:
|
||||||||||||||||||||
|
Basic net income per common share
|
$
|
0.49
|
$
|
0.47
|
$
|
0.42
|
$
|
0.97
|
$
|
0.81
|
||||||||||
|
Diluted net income per common share
|
$
|
0.49
|
$
|
0.47
|
$
|
0.42
|
$
|
0.96
|
$
|
0.81
|
||||||||||
|
|
||||||||||||||||||||
|
Weighted average shares outstanding:
|
||||||||||||||||||||
|
Basic
|
34,697,888
|
34,602,337
|
34,172,274
|
34,650,377
|
34,080,281
|
|||||||||||||||
|
Diluted
|
35,081,702
|
34,966,600
|
34,431,054
|
35,024,859
|
34,319,796
|
|||||||||||||||
|
|
||||||||||||||||||||
|
This information is preliminary and based on company data available at the time of the presentation.
|
||||||||||||||||||||
8
|
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
|
|||||||||||||
|
(dollars in thousands)
|
June
|
March
|
December
|
September
|
June
|
March
|
|||||||
|
2014
|
2014
|
2013
|
2013
|
2013
|
2013
|
||||||||
|
|
|||||||||||||
|
Balance sheet data, at quarter end:
|
|||||||||||||
|
Commercial real estate - mortgage loans
|
$
|
1,457,335
|
1,456,172
|
1,383,435
|
1,326,838
|
1,308,873
|
1,278,639
|
||||||
|
Consumer real estate - mortgage loans
|
698,528
|
703,592
|
695,616
|
687,259
|
697,490
|
675,632
|
|||||||
|
Construction and land development loans
|
292,875
|
294,055
|
316,191
|
319,973
|
298,509
|
306,433
|
|||||||
|
Commercial and industrial loans
|
1,697,634
|
1,568,937
|
1,605,547
|
1,513,632
|
1,504,086
|
1,403,428
|
|||||||
|
Consumer and other
|
169,190
|
158,931
|
143,704
|
121,600
|
116,407
|
108,232
|
|||||||
|
Total loans
|
4,315,562
|
4,181,687
|
4,144,493
|
3,969,302
|
3,925,365
|
3,772,364
|
|||||||
|
Allowance for loan losses
|
(66,888
|
)
|
(67,524
|
)
|
(67,970
|
)
|
(67,280
|
)
|
(68,695
|
)
|
(69,411
|
)
|
|
|
Securities
|
782,066
|
774,134
|
733,252
|
743,885
|
727,889
|
724,004
|
|||||||
|
Total assets
|
5,788,792
|
5,600,933
|
5,563,776
|
5,391,201
|
5,373,168
|
5,070,935
|
|||||||
|
Noninterest-bearing deposits
|
1,324,358
|
1,180,202
|
1,167,414
|
1,138,421
|
1,098,887
|
977,496
|
|||||||
|
Total deposits
|
4,651,513
|
4,500,577
|
4,533,473
|
4,333,543
|
4,096,578
|
3,902,895
|
|||||||
| Securities sold under agreements to | |||||||||||||
|
repurchase
|
62,273
|
68,093
|
70,465
|
84,032
|
117,346
|
129,100
|
|||||||
|
FHLB advances
|
170,556
|
150,604
|
90,637
|
115,671
|
325,762
|
200,796
|
|||||||
|
Subordinated debt and other borrowings
|
97,408
|
98,033
|
98,658
|
99,283
|
99,908
|
105,533
|
|||||||
|
Total stockholders' equity
|
764,382
|
742,497
|
723,708
|
712,216
|
696,569
|
691,434
|
|||||||
|
|
|||||||||||||
|
Balance sheet data, quarterly averages:
|
|||||||||||||
|
Total loans
|
$
|
4,251,900
|
4,130,289
|
3,981,214
|
3,932,218
|
3,845,476
|
3,681,686
|
||||||
|
Securities
|
782,436
|
748,539
|
731,651
|
739,625
|
745,969
|
714,104
|
|||||||
|
Total earning assets
|
5,187,589
|
5,023,692
|
4,903,233
|
4,825,552
|
4,710,534
|
4,513,273
|
|||||||
|
Total assets
|
5,673,615
|
5,514,031
|
5,388,371
|
5,313,003
|
5,210,600
|
4,992,018
|
|||||||
|
Noninterest-bearing deposits
|
1,202,740
|
1,128,743
|
1,179,340
|
1,100,532
|
1,012,718
|
952,853
|
|||||||
|
Total deposits
|
4,518,963
|
4,509,493
|
4,407,806
|
4,198,779
|
3,963,393
|
3,949,742
|
|||||||
| Securities sold under agreements to | |||||||||||||
|
repurchase
|
59,888
|
62,500
|
85,096
|
110,123
|
129,550
|
130,740
|
|||||||
|
FHLB advances
|
224,432
|
83,787
|
42,012
|
181,392
|
293,581
|
98,989
|
|||||||
|
Subordinated debt and other borrowings
|
99,015
|
98,651
|
100,030
|
100,995
|
102,573
|
106,777
|
|||||||
|
Total stockholders' equity
|
757,089
|
740,743
|
722,919
|
705,275
|
699,559
|
688,241
|
|||||||
|
|
|||||||||||||
|
Statement of operations data, for the three months ended:
|
|||||||||||||
|
Interest income
|
$
|
50,564
|
49,291
|
48,405
|
48,177
|
47,544
|
47,156
|
||||||
|
Interest expense
|
3,338
|
3,383
|
3,436
|
3,604
|
3,945
|
4,398
|
|||||||
|
Net interest income
|
47,226
|
45,908
|
44,969
|
44,573
|
43,599
|
42,758
|
|||||||
|
Provision for loan losses
|
254
|
488
|
2,225
|
685
|
2,774
|
2,172
|
|||||||
| Net interest income after provision | |||||||||||||
|
for loan losses
|
46,972
|
45,420
|
42,744
|
43,888
|
40,825
|
40,586
|
|||||||
|
Noninterest income
|
12,598
|
12,732
|
12,488
|
11,387
|
11,326
|
11,902
|
|||||||
|
Noninterest expense
|
33,902
|
33,646
|
32,637
|
33,323
|
30,862
|
32,440
|
|||||||
|
Income before taxes
|
25,668
|
24,506
|
22,596
|
21,952
|
21,289
|
20,048
|
|||||||
|
Income tax expense
|
8,498
|
8,140
|
7,274
|
7,305
|
6,978
|
6,600
|
|||||||
|
Net income
|
$
|
17,170
|
16,367
|
15,321
|
14,647
|
14,311
|
13,448
|
||||||
|
|
|||||||||||||
|
Profitability and other ratios:
|
|||||||||||||
|
Return on avg. assets (1)
|
1.21
|
%
|
1.20
|
%
|
1.13
|
%
|
1.09
|
%
|
1.10
|
%
|
1.09
|
%
|
|
|
Return on avg. equity (1)
|
9.10
|
%
|
8.96
|
%
|
8.41
|
%
|
8.24
|
%
|
8.21
|
%
|
7.92
|
%
|
|
|
Return on avg. tangible common equity (1)
|
13.50
|
%
|
13.45
|
%
|
12.79
|
%
|
12.71
|
%
|
12.72
|
%
|
12.41
|
%
|
|
|
Dividend payout ratio (18)
|
18.29
|
%
|
19.16
|
%
|
20.38
|
%
|
-
|
-
|
-
|
||||
|
Net interest margin (1) (2)
|
3.71
|
%
|
3.76
|
%
|
3.70
|
%
|
3.72
|
%
|
3.77
|
%
|
3.90
|
%
|
|
|
Noninterest income to total revenue (3)
|
21.06
|
%
|
21.72
|
%
|
21.73
|
%
|
20.35
|
%
|
20.62
|
%
|
21.77
|
%
|
|
|
Noninterest income to avg. assets (1)
|
0.89
|
%
|
0.94
|
%
|
0.92
|
%
|
0.85
|
%
|
0.87
|
%
|
0.97
|
%
|
|
|
Noninterest exp. to avg. assets (1)
|
2.40
|
%
|
2.47
|
%
|
2.40
|
%
|
2.49
|
%
|
2.38
|
%
|
2.64
|
%
|
|
|
Noninterest expense (excluding ORE
|
|||||||||||||
| and FHLB restructuring charges) | |||||||||||||
|
to avg. assets (1)
|
2.38
|
%
|
2.43
|
%
|
2.38
|
%
|
2.44
|
%
|
2.27
|
%
|
2.51
|
%
|
|
|
Efficiency ratio (4)
|
56.67
|
%
|
57.38
|
%
|
56.80
|
%
|
59.55
|
%
|
56.19
|
%
|
59.35
|
%
|
|
|
Avg. loans to average deposits
|
94.09
|
%
|
91.59
|
%
|
90.32
|
%
|
93.65
|
%
|
97.02
|
%
|
93.21
|
%
|
|
|
Securities to total assets
|
13.51
|
%
|
13.82
|
%
|
13.18
|
%
|
13.80
|
%
|
13.55
|
%
|
14.28
|
%
|
|
|
|
|||||||||||||
|
|
|||||||||||||
|
|
|||||||||||||
|
This information is preliminary and based on company data available at the time of the presentation.
|
|||||||||||||
9
|
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
|
||||||||||||||
|
June 30, 2014
|
June 30, 2013
|
|||||||||||||||
|
|
Average Balances
|
Interest
|
Rates/ Yields
|
Average Balances
|
Interest
|
Rates/ Yields
|
||||||||||
|
Interest-earning assets
|
||||||||||||||||
|
Loans (1)
|
$
|
4,251,900
|
$
|
45,090
|
4.27
|
%
|
$
|
3,845,476
|
$
|
42,149
|
4.41
|
%
|
||||
|
Securities
|
||||||||||||||||
|
Taxable
|
609,884
|
3,628
|
2.39
|
%
|
575,611
|
3,651
|
2.54
|
%
|
||||||||
|
Tax-exempt (2)
|
172,552
|
1,563
|
4.85
|
%
|
170,358
|
1,484
|
4.66
|
%
|
||||||||
|
Federal funds sold and other
|
153,253
|
283
|
0.87
|
%
|
119,089
|
260
|
1.04
|
%
|
||||||||
|
Total interest-earning assets
|
5,187,589
|
$
|
50,564
|
3.97
|
%
|
4,710,534
|
$
|
47,544
|
4.10
|
%
|
||||||
|
Nonearning assets
|
||||||||||||||||
|
Intangible assets
|
247,081
|
248,439
|
||||||||||||||
|
Other nonearning assets
|
238,945
|
251,627
|
||||||||||||||
|
Total assets
|
$
|
5,673,615
|
$
|
5,210,600
|
||||||||||||
|
|
||||||||||||||||
|
Interest-bearing liabilities
|
||||||||||||||||
|
Interest-bearing deposits:
|
||||||||||||||||
|
Interest checking
|
$
|
911,878
|
$
|
391
|
0.17
|
%
|
$
|
790,043
|
$
|
536
|
0.27
|
%
|
||||
|
Savings and money market
|
1,913,453
|
1,392
|
0.29
|
%
|
1,581,868
|
1,381
|
0.35
|
%
|
||||||||
|
Time
|
490,892
|
699
|
0.57
|
%
|
578,764
|
1,039
|
0.72
|
%
|
||||||||
|
Total interest-bearing deposits
|
3,316,223
|
2,482
|
0.30
|
%
|
2,950,675
|
2,956
|
0.40
|
%
|
||||||||
|
Securities sold under agreements to repurchase
|
59,888
|
31
|
0.21
|
%
|
129,550
|
71
|
0.22
|
%
|
||||||||
|
Federal Home Loan Bank advances
|
224,432
|
187
|
0.33
|
%
|
293,581
|
223
|
0.31
|
%
|
||||||||
|
Subordinated debt and other borrowings
|
99,015
|
638
|
2.58
|
%
|
102,573
|
695
|
2.72
|
%
|
||||||||
|
Total interest-bearing liabilities
|
3,699,558
|
3,338
|
0.36
|
%
|
3,476,379
|
3,945
|
0.46
|
%
|
||||||||
|
Noninterest-bearing deposits
|
1,202,740
|
-
|
-
|
1,012,718
|
-
|
-
|
||||||||||
|
Total deposits and interest-bearing liabilities
|
4,902,298
|
$
|
3,338
|
0.27
|
%
|
4,489,097
|
$
|
3,945
|
0.35
|
%
|
||||||
|
Other liabilities
|
14,228
|
21,944
|
||||||||||||||
|
Stockholders' equity
|
757,089
|
699,559
|
||||||||||||||
|
Total liabilities and stockholders' equity
|
$
|
5,673,615
|
$
|
5,210,600
|
||||||||||||
|
Net interest income
|
$
|
47,226
|
$
|
43,599
|
||||||||||||
|
Net interest spread (3)
|
3.61
|
%
|
3.64
|
%
|
||||||||||||
|
Net interest margin (4)
|
3.71
|
%
|
3.77
|
%
|
||||||||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
(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 June 30, 2014 would have been 3.69% compared to a net interest spread of 3.75% for the quarter ended June 30, 2013.
|
||||||||||||||||
|
(4) Net interest margin is the result of annualized net interest income calculated on a tax equivalent basis divided by average interest-earning assets for the period.
|
||||||||||||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
This information is preliminary and based on company data available at the time of the presentation.
|
||||||||||||||||
10
|
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED
|
||||||||||||||||
|
(dollars in thousands)
|
Six Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30, 2014
|
June 30, 2013
|
|||||||||||||||
|
|
Average Balances
|
Interest
|
Rates/ Yields
|
Average Balances
|
Interest
|
Rates/ Yields
|
||||||||||
|
Interest-earning assets
|
||||||||||||||||
|
Loans (1)
|
$
|
4,191,430
|
$
|
88,785
|
4.28
|
%
|
$
|
3,764,033
|
$
|
83,663
|
4.49
|
%
|
||||
|
Securities
|
||||||||||||||||
|
Taxable
|
591,708
|
7,349
|
2.50
|
%
|
556,885
|
7,322
|
2.65
|
%
|
||||||||
|
Tax-exempt (2)
|
173,873
|
3,161
|
4.90
|
%
|
173,240
|
3,140
|
4.88
|
%
|
||||||||
|
Federal funds sold and other
|
149,082
|
560
|
0.90
|
%
|
118,290
|
575
|
1.14
|
%
|
||||||||
|
Total interest-earning assets
|
5,106,093
|
$
|
99,855
|
4.00
|
%
|
4,612,448
|
$
|
94,700
|
4.19
|
%
|
||||||
|
Nonearning assets
|
||||||||||||||||
|
Intangible assets
|
247,220
|
248,688
|
||||||||||||||
|
Other nonearning assets
|
240,951
|
240,787
|
||||||||||||||
|
Total assets
|
$
|
5,594,264
|
$
|
5,101,923
|
||||||||||||
|
|
||||||||||||||||
|
Interest-bearing liabilities
|
||||||||||||||||
|
Interest-bearing deposits:
|
||||||||||||||||
|
Interest checking
|
$
|
916,431
|
$
|
821
|
0.18
|
%
|
$
|
782,631
|
$
|
1,142
|
0.29
|
%
|
||||
|
Savings and money market
|
1,932,514
|
2,819
|
0.29
|
%
|
1,607,151
|
3,005
|
0.38
|
%
|
||||||||
|
Time
|
499,364
|
1,437
|
0.58
|
%
|
583,873
|
2,221
|
0.77
|
%
|
||||||||
|
Total interest-bearing deposits
|
3,348,309
|
5,077
|
0.31
|
%
|
2,973,655
|
6,368
|
0.43
|
%
|
||||||||
|
Securities sold under agreements to repurchase
|
61,187
|
62
|
0.20
|
%
|
130,141
|
149
|
0.23
|
%
|
||||||||
|
Federal Home Loan Bank advances
|
154,498
|
310
|
0.40
|
%
|
196,822
|
414
|
0.42
|
%
|
||||||||
|
Subordinated debt and other borrowings
|
98,834
|
1,272
|
2.60
|
%
|
104,663
|
1,412
|
2.72
|
%
|
||||||||
|
Total interest-bearing liabilities
|
3,662,828
|
6,721
|
0.37
|
%
|
3,405,281
|
8,343
|
0.49
|
%
|
||||||||
|
Noninterest-bearing deposits
|
1,165,946
|
-
|
-
|
982,951
|
-
|
-
|
||||||||||
|
Total deposits and interest-bearing liabilities
|
4,828,774
|
$
|
6,721
|
0.28
|
%
|
4,388,232
|
$
|
8,343
|
0.38
|
%
|
||||||
|
Other liabilities
|
16,533
|
19,759
|
||||||||||||||
|
Stockholders' equity
|
748,957
|
693,932
|
||||||||||||||
|
Total liabilities and stockholders' equity
|
$
|
5,594,264
|
$
|
5,101,923
|
||||||||||||
|
Net interest income
|
$
|
93,134
|
$
|
86,357
|
||||||||||||
|
Net interest spread (3)
|
3.63
|
%
|
3.70
|
%
|
||||||||||||
|
Net interest margin (4)
|
3.73
|
%
|
3.83
|
%
|
||||||||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
(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 six months ended June 30, 2014 would have been 3.72% compared to a net interest spread of 3.81% for the six months ended June 30, 2013.
|
||||||||||||||||
|
(4) Net interest margin is the result of net interest income calculated on a tax equivalent basis divided by average interest-earning assets for the period.
|
||||||||||||||||
|
|
||||||||||||||||
|
This information is preliminary and based on company data available at the time of the presentation.
|
||||||||||||||||
11
|
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
|
|||||||||||||
|
(dollars in thousands)
|
June
|
March
|
December
|
September
|
June
|
March
|
|||||||
|
2014
|
2014
|
2013
|
2013
|
2013
|
2013
|
||||||||
|
|
|||||||||||||
|
Asset quality information and ratios:
|
|||||||||||||
|
Nonperforming assets:
|
|||||||||||||
|
Nonaccrual loans
|
$
|
15,678
|
15,606
|
18,183
|
19,989
|
20,561
|
21,837
|
||||||
|
Other real estate (ORE)
|
12,946
|
15,038
|
15,226
|
15,522
|
15,992
|
16,802
|
|||||||
|
Total nonperforming assets
|
$
|
28,624
|
30,644
|
33,409
|
35,511
|
36,553
|
38,639
|
||||||
|
Past due loans over 90 days and still
|
|||||||||||||
|
accruing interest
|
$
|
649
|
7,944
|
3,057
|
-
|
747
|
152
|
||||||
|
Troubled debt restructurings (5)
|
$
|
7,552
|
15,108
|
19,647
|
19,661
|
20,427
|
20,667
|
||||||
|
Net loan charge-offs
|
$
|
890
|
934
|
1,535
|
2,100
|
3,491
|
2,178
|
||||||
|
Allowance for loan losses to nonperforming loans
|
426.6
|
%
|
432.7
|
%
|
373.8
|
%
|
336.6
|
%
|
334.1
|
%
|
317.9
|
%
|
|
|
As a percentage of total loans:
|
|||||||||||||
|
Past due accruing loans over 30 days
|
0.45
|
%
|
0.43
|
%
|
0.39
|
%
|
0.33
|
%
|
0.39
|
%
|
0.23
|
%
|
|
|
Potential problem loans (6)
|
1.79
|
%
|
2.01
|
%
|
1.51
|
%
|
1.80
|
%
|
2.11
|
%
|
2.57
|
%
|
|
|
Allowance for loan losses
|
1.55
|
%
|
1.61
|
%
|
1.64
|
%
|
1.70
|
%
|
1.75
|
%
|
1.84
|
%
|
|
| Nonperforming assets to total loans | |||||||||||||
|
and ORE
|
0.66
|
%
|
0.73
|
%
|
0.80
|
%
|
0.89
|
%
|
0.93
|
%
|
1.02
|
%
|
|
|
Nonperforming assets to total assets
|
0.49
|
%
|
0.55
|
%
|
0.60
|
%
|
0.66
|
%
|
0.68
|
%
|
0.76
|
%
|
|
|
Classified asset ratio (Pinnacle Bank) (8)
|
18.1
|
%
|
21.2
|
%
|
18.5
|
%
|
20.6
|
%
|
23.3
|
%
|
26.4
|
%
|
|
|
Annualized net loan charge-offs
|
|||||||||||||
|
year-to-date to avg. loans (7)
|
0.09
|
%
|
0.09
|
%
|
0.24
|
%
|
0.27
|
%
|
0.30
|
%
|
0.24
|
%
|
|
| Wtd. avg. commercial loan internal risk | |||||||||||||
|
ratings (6)
|
4.5
|
4.5
|
4.5
|
4.5
|
4.5
|
4.5
|
|||||||
|
|
|||||||||||||
|
Interest rates and yields:
|
|||||||||||||
|
Loans
|
4.27
|
%
|
4.30
|
%
|
4.28
|
%
|
4.33
|
%
|
4.41
|
%
|
4.58
|
%
|
|
|
Securities
|
2.93
|
%
|
3.17
|
%
|
3.16
|
%
|
3.04
|
%
|
3.03
|
%
|
3.34
|
%
|
|
|
Total earning assets
|
3.97
|
%
|
4.04
|
%
|
3.98
|
%
|
4.02
|
%
|
4.10
|
%
|
4.30
|
%
|
|
|
Total deposits, including non-interest bearing
|
0.22
|
%
|
0.23
|
%
|
0.24
|
%
|
0.26
|
%
|
0.30
|
%
|
0.35
|
%
|
|
| Securities sold under agreements to | |||||||||||||
|
repurchase
|
0.21
|
%
|
0.20
|
%
|
0.16
|
%
|
0.20
|
%
|
0.22
|
%
|
0.24
|
%
|
|
|
FHLB advances
|
0.33
|
%
|
0.59
|
%
|
0.97
|
%
|
0.38
|
%
|
0.31
|
%
|
0.78
|
%
|
|
|
Subordinated debt and other borrowings
|
2.58
|
%
|
2.61
|
%
|
2.60
|
%
|
2.62
|
%
|
2.72
|
%
|
2.72
|
%
|
|
|
Total deposits and interest-bearing liabilities
|
0.27
|
%
|
0.29
|
%
|
0.29
|
%
|
0.31
|
%
|
0.35
|
%
|
0.42
|
%
|
|
|
|
|||||||||||||
|
Pinnacle Financial Partners capital ratios (8):
|
|||||||||||||
|
Stockholders' equity to total assets
|
13.2
|
%
|
13.3
|
%
|
13.0
|
%
|
13.2
|
%
|
13.0
|
%
|
13.6
|
%
|
|
|
Leverage
|
11.0
|
%
|
11.0
|
%
|
10.9
|
%
|
10.8
|
%
|
10.7
|
%
|
10.8
|
%
|
|
|
Tier one risk-based
|
12.1
|
%
|
12.2
|
%
|
11.8
|
%
|
12.0
|
%
|
11.7
|
%
|
11.7
|
%
|
|
|
Total risk-based
|
13.4
|
%
|
13.5
|
%
|
13.0
|
%
|
13.2
|
%
|
12.9
|
%
|
13.0
|
%
|
|
| Tier one common equity to | |||||||||||||
|
risk-weighted assets
|
10.5
|
%
|
10.5
|
%
|
10.1
|
%
|
10.2
|
%
|
9.9
|
%
|
9.9
|
%
|
|
|
Tangible common equity to tangible assets
|
9.3
|
%
|
9.3
|
%
|
9.0
|
%
|
9.0
|
%
|
8.8
|
%
|
9.2
|
%
|
|
|
Pinnacle Bank ratios:
|
|||||||||||||
|
Leverage
|
10.5
|
%
|
10.5
|
%
|
10.5
|
%
|
10.5
|
%
|
10.5
|
%
|
10.7
|
%
|
|
|
Tier one risk-based
|
11.5
|
%
|
11.7
|
%
|
11.3
|
%
|
11.6
|
%
|
11.5
|
%
|
11.6
|
%
|
|
|
Total risk-based
|
12.8
|
%
|
12.9
|
%
|
12.6
|
%
|
12.9
|
%
|
12.7
|
%
|
12.8
|
%
|
|
|
|
|||||||||||||
|
This information is preliminary and based on company data available at the time of the presentation.
|
|||||||||||||
12
|
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
|
|||||||||||||
|
|
|||||||||||||
|
|
|||||||||||||
|
(dollars in thousands, except per share data)
|
June
|
March
|
December
|
September
|
June
|
March
|
|||||||
|
2014
|
2014
|
2013
|
2013
|
2013
|
2013
|
||||||||
|
|
|||||||||||||
|
Per share data:
|
|||||||||||||
|
Earnings – basic
|
$
|
0.49
|
0.47
|
0.45
|
0.43
|
0.42
|
0.40
|
||||||
|
Earnings – diluted
|
$
|
0.49
|
0.47
|
0.44
|
0.42
|
0.42
|
0.39
|
||||||
|
Common dividends per share
|
$
|
0.08
|
0.08
|
0.08
|
-
|
-
|
-
|
||||||
| Book value per common share at | |||||||||||||
|
quarter end (9)
|
$
|
21.47
|
20.88
|
20.55
|
20.27
|
19.86
|
19.74
|
||||||
|
Tangible common equity per common share
|
$
|
14.53
|
13.93
|
13.52
|
13.22
|
12.78
|
12.64
|
||||||
|
|
|||||||||||||
|
Weighted avg. common shares – basic
|
34,697,888
|
34,602,337
|
34,355,691
|
34,282,899
|
34,172,274
|
33,987,265
|
|||||||
|
Weighted avg. common shares – diluted
|
35,081,702
|
34,966,600
|
34,765,424
|
34,606,567
|
34,431,054
|
34,206,202
|
|||||||
|
Common shares outstanding
|
35,601,495
|
35,567,268
|
35,221,941
|
35,133,733
|
35,073,763
|
35,022,487
|
|||||||
|
|
|||||||||||||
|
Investor information:
|
|||||||||||||
|
Closing sales price
|
$
|
39.48
|
37.49
|
32.53
|
29.81
|
25.71
|
23.36
|
||||||
|
High closing sales price during quarter
|
$
|
39.48
|
38.64
|
33.25
|
29.99
|
26.17
|
23.73
|
||||||
|
Low closing sales price during quarter
|
$
|
33.46
|
31.02
|
29.67
|
26.56
|
21.68
|
19.29
|
||||||
|
|
|||||||||||||
|
Other information:
|
|||||||||||||
|
Gains on mortgage loans sold:
|
|||||||||||||
|
Mortgage loan sales:
|
|||||||||||||
|
Gross loans sold
|
$
|
83,421
|
61,290
|
70,194
|
105,817
|
123,181
|
120,569
|
||||||
|
Gross fees (10)
|
$
|
2,715
|
1,504
|
1,842
|
2,470
|
3,346
|
3,158
|
||||||
|
Gross fees as a percentage of loans originated
|
3.25
|
%
|
2.45
|
%
|
2.62
|
%
|
2.33
|
%
|
2.72
|
%
|
2.62
|
%
|
|
|
Net gain on mortgage loans sold
|
$
|
1,669
|
1,235
|
1,113
|
1,326
|
1,949
|
1,813
|
||||||
|
Investment losses on sales, net (17)
|
$
|
-
|
-
|
-
|
(1,441
|
)
|
(25
|
)
|
-
|
||||
|
Brokerage account assets, at quarter-end (11)
|
$
|
1,680,619
|
1,611,232
|
1,560,349
|
1,445,461
|
1,387,172
|
1,333,676
|
||||||
| Trust account managed assets, | |||||||||||||
|
at quarter-end
|
$
|
687,772
|
613,440
|
605,324
|
576,190
|
630,322
|
515,970
|
||||||
|
Core deposits (12)
|
$
|
4,245,745
|
4,087,477
|
4,100,037
|
3,903,000
|
3,771,424
|
3,537,860
|
||||||
|
Core deposits to total funding (12)
|
85.2
|
%
|
84.8
|
%
|
85.5
|
%
|
84.3
|
%
|
81.3
|
%
|
84.0
|
%
|
|
|
Risk-weighted assets
|
$
|
4,924,884
|
4,730,907
|
4,803,942
|
4,557,124
|
4,532,735
|
4,388,341
|
||||||
| Total assets per full-time equivalent | |||||||||||||
|
employee
|
$
|
7,734
|
7,528
|
7,408
|
7,305
|
7,335
|
7,038
|
||||||
| Annualized revenues per full-time | |||||||||||||
|
equivalent employee
|
$
|
320.6
|
319.7
|
303.5
|
300.8
|
300.8
|
307.7
|
||||||
| Annualized expenses per full-time | |||||||||||||
|
equivalent employee
|
$
|
181.7
|
183.4
|
172.4
|
179.1
|
169.0
|
182.6
|
||||||
|
Number of employees (full-time equivalent)
|
748.5
|
744.0
|
751.0
|
738.0
|
732.5
|
720.5
|
|||||||
|
Associate retention rate (13)
|
93.8
|
%
|
95.6
|
%
|
94.4
|
%
|
93.9
|
%
|
93.0
|
%
|
91.2
|
%
|
|
|
|
|||||||||||||
|
Selected economic information (in thousands) (14):
|
|||||||||||||
| Nashville MSA nonfarm employment - | |||||||||||||
|
May 2014
|
831.1
|
827.1
|
817.3
|
815.1
|
817.1
|
807.1
|
|||||||
| Knoxville MSA nonfarm employment - | |||||||||||||
|
May 2014
|
340.8
|
338.0
|
334.2
|
335.6
|
337.9
|
337.4
|
|||||||
|
Nashville MSA unemployment - May 2014
|
5.2
|
%
|
5.4
|
%
|
5.9
|
%
|
6.5
|
%
|
6.6
|
%
|
6.2
|
%
|
|
|
Knoxville MSA unemployment - May 2014
|
5.6
|
%
|
5.8
|
%
|
6.3
|
%
|
7.0
|
%
|
6.9
|
%
|
6.6
|
%
|
|
| Nashville residential median home price - | |||||||||||||
|
June 2014
|
$
|
222.0
|
195.0
|
198.8
|
197.9
|
205.9
|
169.0
|
||||||
| Nashville inventory of residential homes for sale - | |||||||||||||
|
June 2014 (16)
|
10.6
|
9.4
|
8.2
|
10.2
|
10.6
|
9.9
|
|||||||
|
|
|||||||||||||
|
This information is preliminary and based on company data available at the time of the presentation.
|
|||||||||||||
13
|
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
|
|||||||||||||
|
|
June
|
March
|
December
|
September
|
June
|
March
|
|||||||
|
(dollars in thousands, except per share data)
|
2014
|
2014
|
2013
|
2013
|
2013
|
2013
|
|||||||
|
|
|||||||||||||
|
Tangible assets:
|
|||||||||||||
|
Total assets
|
$
|
5,788,792
|
5,600,933
|
5,563,776
|
5,391,201
|
5,373,168
|
5,070,935
|
||||||
|
Less: Goodwill
|
(243,550
|
)
|
(243,568
|
)
|
(243,651
|
)
|
(243,808
|
)
|
(243,900
|
)
|
(244,012
|
)
|
|
|
Core deposit and other intangible assets
|
(3,365
|
)
|
(3,603
|
)
|
(3,841
|
)
|
(4,087
|
)
|
(4,334
|
)
|
(4,582
|
)
|
|
|
Net tangible assets
|
$
|
5,541,877
|
5,353,762
|
5,316,284
|
5,143,306
|
5,124,934
|
4,822,342
|
||||||
|
|
|||||||||||||
|
Tangible equity:
|
|||||||||||||
|
Total stockholders' equity
|
$
|
764,382
|
742,497
|
723,708
|
712,216
|
696,569
|
691,434
|
||||||
|
Less: Goodwill
|
(243,550
|
)
|
(243,568
|
)
|
(243,651
|
)
|
(243,808
|
)
|
(243,900
|
)
|
(244,012
|
)
|
|
|
Core deposit and other intangible assets
|
(3,365
|
)
|
(3,603
|
)
|
(3,841
|
)
|
(4,087
|
)
|
(4,334
|
)
|
(4,582
|
)
|
|
|
Net tangible common equity
|
$
|
517,467
|
495,326
|
476,216
|
464,321
|
448,335
|
442,840
|
||||||
|
|
|||||||||||||
|
Ratio of tangible common equity to tangible assets
|
9.34
|
%
|
9.25
|
%
|
8.96
|
%
|
9.03
|
%
|
8.75
|
%
|
9.18
|
%
|
|
|
|
|||||||||||||
|
Average tangible equity:
|
|||||||||||||
|
Average stockholders' equity
|
$
|
757,089
|
740,743
|
722,919
|
705,275
|
699,559
|
688,241
|
||||||
|
Less: Average goodwill
|
(243,559
|
)
|
(243,610
|
)
|
(243,729
|
)
|
(243,854
|
)
|
(243,956
|
)
|
(244,026
|
)
|
|
|
Core deposit and other intangible assets
|
(3,484
|
)
|
(3,722
|
)
|
(3,964
|
)
|
(4,211
|
)
|
(4,458
|
)
|
(4,843
|
)
|
|
|
Net average tangible common equity
|
$
|
510,046
|
493,411
|
475,226
|
457,210
|
451,145
|
439,372
|
||||||
|
|
|||||||||||||
|
Return on average tangible common equity (1)
|
13.50
|
%
|
13.45
|
%
|
12.79
|
%
|
12.71
|
%
|
12.72
|
%
|
12.41
|
%
|
|
|
|
|||||||||||||
|
|
|||||||||||||
|
|
|||||||||||||
|
|
For the three months ended
|
||||||||||||
|
|
June
|
March
|
December
|
September
|
June
|
March
|
|||||||
|
|
2014
|
2014
|
2013
|
2013
|
2013
|
2013
|
|||||||
|
|
|||||||||||||
|
Net interest income
|
$
|
47,226
|
45,908
|
44,969
|
44,573
|
43,599
|
42,758
|
||||||
|
|
|||||||||||||
|
Noninterest income
|
12,598
|
12,732
|
12,488
|
11,387
|
11,326
|
11,902
|
|||||||
|
Less: Investment losses on sales, net
|
-
|
-
|
-
|
1,441
|
25
|
-
|
|||||||
|
Net noncredit related loan losses
|
-
|
-
|
-
|
-
|
771
|
-
|
|||||||
|
Noninterest income excluding investment losses on
|
|||||||||||||
|
sales, net, and noncredit related loan losses
|
12,598
|
12,732
|
12,488
|
12,828
|
12,122
|
11,902
|
|||||||
|
Total revenues excluding the impact of investment losses on
|
|||||||||||||
|
sales, net, and noncredit related loan losses
|
59,824
|
58,644
|
57,457
|
57,401
|
55,721
|
54,660
|
|||||||
|
|
|||||||||||||
|
Noninterest expense
|
33,902
|
33,646
|
32,637
|
33,323
|
30,862
|
32,440
|
|||||||
|
Less: Other real estate expense
|
226
|
651
|
302
|
699
|
1,391
|
721
|
|||||||
|
FHLB restructuring charges
|
-
|
-
|
-
|
-
|
-
|
877
|
|||||||
|
Noninterest expense excluding the impact of other real estate
|
|||||||||||||
|
expense and FHLB restructuring charges
|
33,676
|
32,995
|
32,335
|
32,624
|
29,471
|
30,842
|
|||||||
|
|
|||||||||||||
|
Adjusted pre-tax pre-provision income (15)
|
$
|
26,148
|
25,645
|
25,122
|
24,777
|
26,250
|
23,818
|
||||||
|
|
|||||||||||||
|
|
|||||||||||||
|
Efficiency Ratio (4)
|
56.7
|
%
|
57.4
|
%
|
56.8
|
%
|
59.5
|
%
|
56.2
|
%
|
59.4
|
%
|
|
|
|
|||||||||||||
|
|
|||||||||||||
|
Total average assets
|
$
|
5,673,615
|
5,514,031
|
5,388,371
|
5,313,003
|
5,210,600
|
4,992,018
|
||||||
|
|
|||||||||||||
|
Noninterest expense (excluding ORE expense and FHLB restructuring charges) to avg. assets (1)
|
2.38
|
%
|
2.43
|
%
|
2.38
|
%
|
2.44
|
%
|
2.27
|
%
|
2.51
|
%
|
|
|
|
|||||||||||||
|
|
|||||||||||||
|
This information is preliminary and based on company data available at the time of the presentation.
|
|||||||||||||
|
|
|||||||||||||
14
|
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
|
|
|
|
|
|
1. Ratios are presented on an annualized basis.
|
|
2. Net interest margin is the result of net interest income on a tax equivalent basis divided by average interest earning assets.
|
|
3. Total revenue is equal to the sum of net interest income and noninterest income.
|
|
4. Efficiency ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income.
|
|
5. Troubled debt restructurings include loans where the company, as a result of the borrower's financial difficulties, has granted a credit concession to the borrower (i.e., interest only payments for a significant period of time, extending the maturity of the loan, etc.). All of these loans continue to accrue interest at the contractual rate.
|
|
6. Average risk ratings are based on an internal loan review system which assigns a numeric value of 1 to 10 to all loans to commercial entities based on their underlying risk characteristics as of the end of each quarter. A "1" risk rating is assigned to credits that exhibit Excellent risk characteristics, "2" exhibit Very Good risk characteristics, "3" Good, "4" Satisfactory, "5" Acceptable or Average, "6" Watch List, "7" Criticized, "8" Classified or Substandard, "9" Doubtful and "10" Loss (which are charged-off immediately). Additionally, loans rated "8" or worse that are not nonperforming or restructured loans are considered potential problem loans. Generally, consumer loans are not subjected to internal risk ratings.
|
|
7. Annualized net loan charge-offs to average loans ratios are computed by annualizing year-to-date net loan charge-offs and dividing the result by average loans for the year-to-date period.
|
|
8. Capital ratios are defined as follows:
|
|
Equity to total assets – End of period total stockholders' equity as a percentage of end of period assets.
|
|
Tangible common equity to total assets - End of period total stockholders' equity less end of period goodwill, core deposit and other intangibles as a percentage of end of period assets.
|
|
Leverage – Tier one capital (pursuant to risk-based capital guidelines) as a percentage of adjusted average assets.
|
|
Tier one risk-based – Tier one capital (pursuant to risk-based capital guidelines) as a percentage of total risk-weighted assets.
|
|
Total risk-based – Total capital (pursuant to risk-based capital guidelines) as a percentage of total risk-weighted assets.
|
|
Classified asset - Classified assets as a percentage of Tier 1 capital plus allowance for loan losses.
|
|
Tier one common equity to risk weighted assets - Tier 1 capital (pursuant to risk-based capital guidelines) less the amount of any preferred stock or subordinated indebtedness that is considered
|
|
as a component of tier 1 capital as a percentage of total risk-weighted assets.
|
|
9. Book value per share computed by dividing total stockholders' equity less preferred stock and common stock warrants by common shares outstanding.
|
|
10. Amounts are included in the statement of operations in "Gains on loans sold, net", net of commissions paid on such amounts.
|
|
11. At fair value, based on information obtained from Pinnacle's third party broker/dealer for non-FDIC insured financial products and services.
|
|
12. Core deposits include all transaction deposit accounts, money market and savings accounts and all certificates of deposit issued in a denomination of less than $250,000.
|
|
The ratio noted above represents total core deposits divided by total funding, which includes total deposits, FHLB advances, securities sold under agreements to repurchase, subordinated indebtedness and all other interest-bearing liabilities.
|
|
13. Associate retention rate is computed by dividing the number of associates employed at quarter-end less the number of associates that have resigned in the last 12 months by the number of associates employed at quarter-end.
|
|
14. Employment and unemployment data is from BERC- MTSU & Bureau of Labor Statistics. Labor force data is seasonally adjusted. The most recent quarter data presented is as of the most recent month that data is available as of the release date. Historical data is subject to update by the BERC- MTSU & Bureau of Labor Statistics. Historical data is presented based on the most recently reported data available by the BERC- MTSU & Bureau of Labor Statistics. The Nashville home data is from the Greater Nashville Association of Realtors.
|
|
15. Adjusted pre-tax, pre-provision income excludes the impact of investment gains and losses on sales and impairments, net and non-credit related loan losses as well as other real estate owned expenses and FHLB restructuring charges.
|
|
16. Represents month's supply of homes currently listed with MLS based on current sales activity in the Nashville MSA.
|
|
17. Represents investment gains (losses) on sales and impairments, net occurring as a result of both credit losses and losses incurred as the result of a change in management's intention to sell a bond prior to the recovery of its amortized cost basis.
|
|
18. The dividend payout ratio is calculated as the sum of the annualized dividend rate divided by the trailing 12-months fully diluted earnings per share as of the dividend declaration date.
|
15