PINNACLE FINANCIAL PARTNERS, INC. | |||
(Exact name of registrant as specified in charter) | |||
Tennessee | 000-31225 | 62-1812853 | |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | |
150 Third Avenue South, Suite 900, Nashville, Tennessee | 37201 | ||
(Address of principal executive offices) | (Zip Code) |
N/A |
By: | /s/Harold R. Carpenter | |
Name: | Harold R. Carpenter | |
Title: | Executive Vice President and | |
Chief Financial Officer |
Exhibit No. | Description |
MEDIA CONTACT: | Joe Bass, 615-743-8219 | |
FINANCIAL CONTACT: | Harold Carpenter, 615-744-3742 | |
WEBSITE: | www.pnfp.com |
• | Pre-tax merger-related charges of $19.1 million and $31.8 million for the three months and year ended Dec. 31, 2017, |
• | Pre-tax investment securities losses of $8.3 million for the three months and year ended Dec. 31, 2017 and |
• | After-tax charges related to the revaluation of the firm’s deferred tax assets of $31.5 million for the three months and year ended Dec. 31, 2017. |
• | 16.9 percent in the three months ended Dec. 31, 2017, compared to the three months ended Dec. 31, 2016 and, |
• | 16.3 percent for the year ended Dec. 31, 2017, compared to the year ended Dec. 31, 2016. |
• | Revenues for the quarter ended Dec. 31, 2017 were $211.2 million, an increase of $91.1 million, or 75.8 percent, from the quarter ended Dec. 31, 2016 and a decrease of $5.0 million from the $216.2 million recognized in the third quarter of 2017. Excluding investment securities losses, revenues for the quarter ended Dec. 31, 2017 were $219.5 million. |
• | Revenue per fully-diluted share was $2.73 for the three months ended Dec. 31, 2017, compared to $2.80 for the third quarter of 2017 and $2.61 for the fourth quarter of 2016. Excluding investment securities losses, revenue per fully-diluted share was $2.83 for the three months ended Dec. 31, 2017. |
• | Loans at Dec. 31, 2017 were a record $15.63 billion, an increase of $373.3 million from Sept. 30, 2017 and $7.18 billion from Dec. 31, 2016, reflecting year-over-year growth of 85.0 percent. |
• | Deposits at Dec. 31, 2017 were a record $16.45 billion, an increase of $662.1 million from Sept. 30, 2017 and $7.69 billion from Dec. 31, 2016, reflecting year-over-year growth of 87.8 percent. |
• | Return on average assets was 0.48 percent for the fourth quarter of 2017, compared to 1.21 percent for the third quarter of 2017 and 1.30 percent for the fourth quarter last year. Fourth quarter 2017 return on average tangible assets amounted to 0.53 percent, compared to 1.32 percent for the third quarter of 2017 and 1.36 percent for the same quarter last year. |
• | Excluding the aforementioned merger-related charges, investment securities losses and the revaluation of deferred tax assets, return on average assets was 1.36 percent for the fourth quarter of 2017, compared to 1.31 percent for the third quarter of 2017 and 1.36 percent for the fourth quarter of 2016. |
• | Additionally, excluding the aforementioned merger-related charges, investment securities losses and the revaluation of deferred tax assets, return on average tangible assets was 1.48 percent for the fourth quarter of 2017, compared to 1.43 percent for the third quarter of 2017 and 1.44 percent for the fourth quarter of 2016, respectively. |
• | Return on average equity for the fourth quarter of 2017 amounted to 2.87 percent, compared to 6.99 percent for the third quarter of 2017 and 9.61 percent for the same quarter last year. Fourth quarter 2017 return on average tangible equity amounted to 5.76 percent, compared to 14.25 percent for the third quarter of 2017 and 15.49 percent for the same quarter last year. |
• | Excluding the aforementioned merger-related charges, investment securities losses and the revaluation of deferred tax assets, return on average tangible equity amounted to 16.11 percent for the fourth quarter of 2017, compared to 15.43 percent for the third quarter of 2017 and 16.24 percent for the fourth quarter of 2016. |
• | Revenues |
• | Net interest income for the quarter ended Dec. 31, 2017 was $174.7 million, compared to $173.2 million for the third quarter of 2017 and $89.4 million for the fourth quarter of 2016. |
• | Net interest margin was 3.76 percent for the fourth quarter of 2017, compared to 3.87 percent for the third quarter of 2017 and 3.72 for the fourth quarter last year. Excluding the accretion from the application of fair value accounting for net loans and deposits acquired in our completed mergers, the net interest margin in each respective period would have approximated 3.33 percent for the fourth quarter of 2017, compared to 3.42 percent for the third quarter of 2017 and 3.40 percent the fourth quarter of 2016. |
• | Noninterest income for the quarter ended Dec. 31, 2017 was $36.5 million, compared to $43.0 million for the third quarter of 2017 and $30.7 million for the fourth quarter of 2016. Excluding investment securities losses, noninterest income for the three months ended Dec. 31, 2017, amounted to $44.8 million. |
• | Net gains from the sale of residential mortgage loans were $3.8 million for the quarter ended Dec. 31, 2017, compared to $6.0 million for the third quarter of 2017 and $2.9 million for the quarter ended Dec. 31, 2016. For the year ended Dec. 31, 2017 net gains on the sale of residential mortgage loans increased 18.2 percent over the year ended Dec. 31, 2016. |
• | Wealth management revenues, which include investment, trust and insurance services, were $9.3 million for the quarter ended Dec. 31, 2017, compared to $8.4 million for the third quarter of 2017 and $6.2 million for the quarter ended Dec. 31, 2016. For the year ended Dec. 31, 2017, wealth management revenues increased 35.7 percent over the year ended Dec. 31, 2016. |
• | Income from the firm's investment in Bankers Healthcare Group, Inc. (BHG) was $12.4 million for the quarter ended Dec. 31, 2017, compared to $8.9 million for the quarter ended Sept. 30, 2017 and $8.1 million for the fourth quarter last year. Income from the firm's investment in BHG grew 20.9 percent for the year ended Dec. 31, 2017 compared to the year ended Dec. 31, 2016. |
• | Noninterest expense |
• | Noninterest expense for the quarter ended Dec. 31, 2017 was $123.0 million, compared to $109.7 million in the third quarter of 2017 and $62.8 million in the fourth quarter last year, reflecting a year-over-year increase of 95.9 percent. |
• | Salaries and employee benefits were $63.3 million in the fourth quarter of 2017, compared to $64.3 million in the third quarter of 2017 and $38.0 million in the fourth quarter of last year, reflecting a year-over-year increase of 66.7 percent. |
• | Included in salaries and employee benefits are costs related to the firm’s 2017 cash incentive plan. Incentive costs for this plan amounted to $6.8 million in the fourth quarter of 2017, compared to $6.9 million in the third quarter of 2017 and $4.9 million in the fourth quarter of last year. |
• | The efficiency ratio for the fourth quarter of 2017 increased to 58.2 percent, compared to 50.8 percent for the third quarter of 2017. The ratio of noninterest expenses to average assets increased to 2.22 percent for the fourth quarter of 2017 from 2.05 percent in the third quarter of 2017. |
• | Excluding investment securities losses, merger-related charges and other real estate owned (ORE) expense, the efficiency ratio was 47.2 percent for the fourth quarter of 2017, compared to 46.4 percent for the third quarter of 2017, and the ratio of noninterest expense to average assets was 1.87 percent for the fourth quarter of 2017, compared to 1.88 percent for the third quarter of 2017. |
• | Asset quality |
• | Nonperforming assets increased to 0.55 percent of total loans and ORE at Dec. 31, 2017, compared to 0.51 percent at Sept. 30, 2017 and 0.40 percent at Dec. 31, 2016. Nonperforming assets increased to $85.5 million at Dec. 31, 2017, compared to $78.1 million at Sept. 30, 2017 and $33.7 million at Dec. 31, 2016. |
• | The allowance for loan losses represented 0.43 percent of total loans at Dec. 31, 2017, compared to 0.43 percent at Sept. 30, 2017 and 0.70 percent at Dec. 31, 2016. |
• | The ratio of the allowance for loan losses to nonperforming loans was 117.0 percent at Dec. 31, 2017, compared to 122.0 percent at Sept. 30, 2017 and 213.9 percent at Dec. 31, 2016. |
• | Net charge-offs were $4.2 million for the quarter ended Dec. 31, 2017, compared to $3.7 million for the quarter ended Sept. 30, 2017 and $4.3 million for the quarter ended Dec. 31, 2016. Annualized net charge-offs as a percentage of average loans for the quarter ended Dec. 31, 2017 were 0.13 percent, compared to 0.14 percent for the third quarter of 2017 and 0.21 percent for the fourth quarter of 2016. |
• | Provision for loan losses was $6.3 million in the fourth quarter of 2017, compared to $6.9 million in the third quarter of 2017 and $3.0 million in the fourth quarter of 2016. |
• | Other Highlights |
• | On Jan. 1, 2017, Pinnacle adopted FASB Accounting Standards Update (ASU) 2016-09, Stock Compensation Improvements to Employee Share-Based Payment Activity, which represented a change in accounting for the tax effects related to vesting of common shares and the exercise of stock options previously granted to the firm's employees through its various equity compensation plans. This change resulted in a reduction in fourth quarter 2017 tax expense of $758,000 and a $5.4 million reduction in tax expense for the 2017 fiscal year. |
• | Pursuant to the Tax Cuts and Jobs Act signed by President Trump on Dec. 22, 2017, Pinnacle recorded a non-cash charge of $31.5 million related to the revaluation of net deferred tax assets due to the statutory federal income tax rate for corporate entities decreasing from 35 percent to 21 percent for 2018 and the future. |
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | |||||||||
CONSOLIDATED BALANCE SHEETS – UNAUDITED | |||||||||
December 31, 2017 | September 30, 2017 | December 31, 2016 | |||||||
ASSETS | |||||||||
Cash and noninterest-bearing due from banks | $ | 176,553,466 | $ | 132,324,313 | $ | 84,732,291 | |||
Interest-bearing due from banks | 496,911,376 | 270,563,317 | 97,529,713 | ||||||
Federal funds sold and other | 106,132,455 | 5,394,587 | 1,383,416 | ||||||
Cash and cash equivalents | 779,597,297 | 408,282,217 | 183,645,420 | ||||||
Securities available-for-sale, at fair value | 2,515,283,219 | 2,880,180,805 | 1,298,546,056 | ||||||
Securities held-to-maturity (fair value of $20,829,978, $21,021,555, and $25,233,254 at Dec. 31, 2017, Sept. 30, 2017 and Dec. 31, 2016, respectively) | 20,762,303 | 20,847,849 | 25,251,316 | ||||||
Consumer loans held-for-sale | 103,728,658 | 105,031,578 | 47,710,120 | ||||||
Commercial loans held-for-sale | 25,456,141 | 20,385,491 | 22,587,971 | ||||||
Loans | 15,633,116,029 | 15,259,785,972 | 8,449,924,736 | ||||||
Less allowance for loan losses | (67,240,094 | ) | (65,159,286 | ) | (58,980,475 | ) | |||
Loans, net | 15,565,875,935 | 15,194,626,686 | 8,390,944,261 | ||||||
Premises and equipment, net | 266,013,608 | 270,136,166 | 88,904,145 | ||||||
Equity method investment | 221,667,490 | 211,501,901 | 205,359,844 | ||||||
Accrued interest receivable | 57,439,656 | 54,286,991 | 28,234,826 | ||||||
Goodwill | 1,808,001,781 | 1,802,534,059 | 551,593,796 | ||||||
Core deposits and other intangible assets | 56,710,268 | 59,780,903 | 15,104,038 | ||||||
Other real estate owned | 27,830,824 | 24,338,967 | 6,089,804 | ||||||
Other assets | 757,332,667 | 738,437,468 | 330,651,002 | ||||||
Total assets | $ | 22,205,699,847 | $ | 21,790,371,081 | $ | 11,194,622,599 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Deposits: | |||||||||
Noninterest-bearing | $ | 4,381,386,246 | $ | 4,099,086,158 | $ | 2,399,191,152 | |||
Interest-bearing | 2,987,290,844 | 2,571,764,582 | 1,808,331,784 | ||||||
Savings and money market accounts | 6,548,964,272 | 6,595,639,931 | 3,714,930,351 | ||||||
Time | 2,534,060,910 | 2,523,094,175 | 836,853,761 | ||||||
Total deposits | 16,451,702,272 | 15,789,584,846 | 8,759,307,048 | ||||||
Securities sold under agreements to repurchase | 135,262,140 | 129,557,107 | 85,706,558 | ||||||
Federal Home Loan Bank advances | 1,319,908,629 | 1,623,946,639 | 406,304,187 | ||||||
Subordinated debt and other borrowings | 465,504,589 | 465,460,556 | 350,768,050 | ||||||
Accrued interest payable | 10,480,426 | 10,715,285 | 5,573,377 | ||||||
Other liabilities | 114,889,760 | 97,757,463 | 90,267,267 | ||||||
Total liabilities | 18,497,747,816 | 18,117,021,896 | 9,697,926,487 | ||||||
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; 77,739,636, 77,652,143 shares and 46,359,377 shares issued and outstanding at Dec. 31, 2017, Sept. 30, 2017, Dec. 31, 2016, respectively | 77,739,636 | 77,652,143 | 46,359,377 | ||||||
Additional paid-in capital | 3,115,303,675 | 3,105,577,594 | 1,083,490,728 | ||||||
Retained earnings | 519,144,543 | 503,270,311 | 381,072,505 | ||||||
Accumulated other comprehensive loss, net of taxes | (4,235,823 | ) | (13,150,863 | ) | (14,226,498 | ) | |||
Total stockholders' equity | 3,707,952,031 | 3,673,349,185 | 1,496,696,112 | ||||||
Total liabilities and stockholders' equity | $ | 22,205,699,847 | $ | 21,790,371,081 | $ | 11,194,622,599 | |||
This information is preliminary and based on company data available at the time of the presentation. |
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED | ||||||||||||||||||||
Three months ended | Year ended | |||||||||||||||||||
December 31, 2017 | September 30, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | ||||||||||||||||
Interest income: | ||||||||||||||||||||
Loans, including fees | $ | 188,906,900 | $ | 183,841,608 | $ | 94,197,055 | $ | 578,286,155 | $ | 335,734,531 | ||||||||||
Securities | ||||||||||||||||||||
Taxable | 12,295,380 | 12,066,502 | 5,128,240 | 39,060,195 | 19,179,012 | |||||||||||||||
Tax-exempt | 5,178,321 | 4,620,340 | 1,532,728 | 13,711,759 | 6,014,037 | |||||||||||||||
Federal funds sold and other | 1,704,323 | 1,638,704 | 635,119 | 5,080,140 | 2,681,348 | |||||||||||||||
Total interest income | 208,084,924 | 202,167,154 | 101,493,142 | 636,138,249 | 363,608,928 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 21,367,176 | 19,103,495 | 7,302,654 | 59,583,527 | 23,917,318 | |||||||||||||||
Securities sold under agreements to repurchase | 129,191 | 148,442 | 46,453 | 405,837 | 185,305 | |||||||||||||||
Federal Home Loan Bank advances and other borrowings | 11,857,840 | 9,733,510 | 4,730,661 | 32,841,874 | 14,512,024 | |||||||||||||||
Total interest expense | 33,354,207 | 28,985,447 | 12,079,768 | 92,831,238 | 38,614,647 | |||||||||||||||
Net interest income | 174,730,717 | 173,181,707 | 89,413,374 | 543,307,011 | 324,994,281 | |||||||||||||||
Provision for loan losses | 6,280,349 | 6,920,184 | 3,046,204 | 23,663,944 | 18,328,058 | |||||||||||||||
Net interest income after provision for loan losses | 168,450,368 | 166,261,523 | 86,367,170 | 519,643,067 | 306,666,223 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
Service charges on deposit accounts | 6,077,936 | 5,920,824 | 3,849,534 | 20,032,979 | 14,500,679 | |||||||||||||||
Investment services | 4,723,203 | 3,660,103 | 3,319,952 | 14,315,228 | 10,757,348 | |||||||||||||||
Insurance sales commissions | 1,961,329 | 2,123,549 | 1,177,710 | 7,404,928 | 5,309,494 | |||||||||||||||
Gains on mortgage loans sold, net | 3,839,216 | 5,962,916 | 2,868,783 | 18,624,621 | 15,754,473 | |||||||||||||||
Investment gains (losses) on sales, net | (8,264,639 | ) | — | 395,186 | (8,264,639 | ) | 395,186 | |||||||||||||
Trust fees | 2,645,020 | 2,636,212 | 1,732,691 | 8,663,590 | 6,328,021 | |||||||||||||||
Income from equity method investment | 12,443,611 | 8,936,626 | 8,136,190 | 37,957,692 | 31,402,923 | |||||||||||||||
Other noninterest income | 13,061,979 | 13,736,779 | 9,262,461 | 46,168,416 | 36,554,938 | |||||||||||||||
Total noninterest income | 36,487,655 | 42,977,009 | 30,742,507 | 144,902,815 | 121,003,062 | |||||||||||||||
Noninterest expense: | ||||||||||||||||||||
Salaries and employee benefits | 63,346,091 | 64,287,986 | 37,994,096 | 209,661,812 | 140,818,772 | |||||||||||||||
Equipment and occupancy | 17,114,476 | 16,590,119 | 9,227,917 | 54,091,964 | 35,071,654 | |||||||||||||||
Other real estate, net | 251,770 | 512,490 | 43,784 | 1,079,193 | 395,561 | |||||||||||||||
Marketing and other business development | 2,092,884 | 2,222,290 | 2,385,723 | 8,321,073 | 6,536,484 | |||||||||||||||
Postage and supplies | 1,662,231 | 1,754,789 | 1,000,316 | 5,735,716 | 3,929,323 | |||||||||||||||
Amortization of intangibles | 3,070,635 | 3,077,277 | 1,136,673 | 8,815,609 | 4,281,459 | |||||||||||||||
Merger-related expenses | 19,103,031 | 8,847,306 | 3,264,199 | 31,843,413 | 11,746,584 | |||||||||||||||
Other noninterest expense | 16,331,900 | 12,443,659 | 7,711,986 | 47,011,079 | 33,505,586 | |||||||||||||||
Total noninterest expense | 122,973,018 | 109,735,916 | 62,764,694 | 366,559,859 | 236,285,423 | |||||||||||||||
Income before income taxes | 81,965,005 | 99,502,616 | 54,344,983 | 297,986,023 | 191,383,862 | |||||||||||||||
Income tax expense | 55,167,231 | 35,060,471 | 18,248,519 | 124,006,536 | 64,159,167 | |||||||||||||||
Net income | $ | 26,797,774 | $ | 64,442,145 | $ | 36,096,464 | $ | 173,979,487 | $ | 127,224,695 | ||||||||||
Per share information: | ||||||||||||||||||||
Basic net income per common share | $ | 0.35 | $ | 0.84 | $ | 0.79 | $ | 2.73 | $ | 2.96 | ||||||||||
Diluted net income per common share | $ | 0.35 | $ | 0.83 | $ | 0.78 | $ | 2.70 | $ | 2.91 | ||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 76,785,573 | 76,678,584 | 45,445,910 | 63,760,578 | 43,037,083 | |||||||||||||||
Diluted | 77,437,013 | 77,232,098 | 46,098,020 | 64,328,189 | 43,731,992 | |||||||||||||||
This information is preliminary and based on company data available at the time of the presentation. |
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | |||||||||||||
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | |||||||||||||
(dollars in thousands) | December | September | June | March | December | September | |||||||
2017 | 2017 | 2017 | 2017 | 2016 | 2016 | ||||||||
Balance sheet data, at quarter end: | |||||||||||||
Commercial real estate - mortgage loans | $ | 6,669,610 | 6,450,042 | 6,387,372 | 3,181,584 | 3,193,496 | 2,991,940 | ||||||
Consumer real estate - mortgage loans | 2,561,214 | 2,541,180 | 2,552,927 | 1,196,375 | 1,185,917 | 1,185,966 | |||||||
Construction and land development loans | 1,908,288 | 1,939,809 | 1,772,799 | 1,015,127 | 912,673 | 930,230 | |||||||
Commercial and industrial loans | 4,141,341 | 3,971,227 | 3,688,357 | 2,980,840 | 2,891,710 | 2,873,643 | |||||||
Consumer and other | 352,663 | 357,528 | 357,310 | 268,106 | 266,129 | 259,241 | |||||||
Total loans | 15,633,116 | 15,259,786 | 14,758,765 | 8,642,032 | 8,449,925 | 8,241,020 | |||||||
Allowance for loan losses | (67,240 | ) | (65,159 | ) | (61,944 | ) | (58,350 | ) | (58,980 | ) | (60,249 | ) | |
Securities | 2,536,046 | 2,901,029 | 2,448,198 | 1,604,774 | 1,323,797 | 1,250,357 | |||||||
Total assets | 22,205,700 | 21,790,371 | 20,886,154 | 11,724,601 | 11,194,623 | 10,978,390 | |||||||
Noninterest-bearing deposits | 4,381,386 | 4,099,086 | 3,893,603 | 2,508,680 | 2,399,191 | 2,369,225 | |||||||
Total deposits | 16,451,702 | 15,789,585 | 15,757,475 | 9,280,597 | 8,759,307 | 8,670,146 | |||||||
Securities sold under agreements to repurchase | 135,262 | 129,557 | 205,008 | 71,157 | 85,707 | 84,317 | |||||||
FHLB advances | 1,319,909 | 1,623,947 | 725,230 | 181,264 | 406,304 | 382,338 | |||||||
Subordinated debt and other borrowings | 465,505 | 465,461 | 465,419 | 350,849 | 350,768 | 262,507 | |||||||
Total stockholders' equity | 3,707,952 | 3,673,349 | 3,615,327 | 1,723,075 | 1,496,696 | 1,475,644 | |||||||
Balance sheet data, quarterly averages: | |||||||||||||
Total loans | $ | 15,520,255 | 15,016,642 | 9,817,139 | 8,558,267 | 8,357,201 | 8,232,963 | ||||||
Securities | 2,850,322 | 2,741,493 | 1,798,334 | 1,440,917 | 1,265,096 | 1,232,973 | |||||||
Total earning assets | 18,809,744 | 18,137,904 | 11,885,118 | 10,261,974 | 9,884,701 | 9,794,094 | |||||||
Total assets | 21,933,500 | 21,211,459 | 13,335,359 | 11,421,654 | 11,037,555 | 10,883,547 | |||||||
Noninterest-bearing deposits | 4,165,876 | 3,953,855 | 2,746,499 | 2,434,875 | 2,445,157 | 2,304,533 | |||||||
Total deposits | 16,091,700 | 15,828,480 | 10,394,267 | 9,099,472 | 8,791,206 | 8,454,424 | |||||||
Securities sold under agreements to repurchase | 134,983 | 160,726 | 99,763 | 79,681 | 82,415 | 87,067 | |||||||
FHLB advances | 1,465,145 | 1,059,032 | 399,083 | 212,951 | 307,039 | 583,724 | |||||||
Subordinated debt and other borrowings | 477,103 | 473,805 | 375,249 | 355,082 | 319,790 | 266,934 | |||||||
Total stockholders' equity | 3,706,741 | 3,655,029 | 2,057,505 | 1,657,072 | 1,493,684 | 1,442,440 | |||||||
Statement of operations data, for the three months ended: | |||||||||||||
Interest income | $ | 208,085 | 202,167 | 123,743 | 102,143 | 101,493 | 97,380 | ||||||
Interest expense | 33,354 | 28,985 | 17,116 | 13,376 | 12,080 | 10,745 | |||||||
Net interest income | 174,731 | 173,182 | 106,627 | 88,767 | 89,413 | 86,635 | |||||||
Provision for loan losses | 6,281 | 6,920 | 6,812 | 3,651 | 3,046 | 6,108 | |||||||
Net interest income after provision for loan losses | 168,450 | 166,262 | 99,815 | 85,116 | 86,367 | 80,527 | |||||||
Noninterest income | 36,488 | 42,977 | 35,057 | 30,382 | 30,743 | 31,692 | |||||||
Noninterest expense | 122,973 | 109,736 | 71,798 | 62,054 | 62,765 | 63,526 | |||||||
Income before taxes | 81,965 | 99,503 | 63,074 | 53,444 | 54,345 | 48,693 | |||||||
Income tax expense | 55,167 | 35,060 | 19,988 | 13,791 | 18,248 | 16,316 | |||||||
Net income | $ | 26,798 | 64,442 | 43,086 | 39,653 | 36,097 | 32,377 | ||||||
Profitability and other ratios: | |||||||||||||
Return on avg. assets (1) | 0.48 | % | 1.21 | % | 1.30 | % | 1.41 | % | 1.30 | % | 1.18 | % | |
Return on avg. equity (1) | 2.87 | % | 6.99 | % | 8.40 | % | 9.70 | % | 9.61 | % | 8.93 | % | |
Return on avg. tangible common equity (1) | 5.76 | % | 14.25 | % | 13.58 | % | 14.74 | % | 15.49 | % | 14.47 | % | |
Dividend payout ratio (16) | 20.00 | % | 17.34 | % | 18.01 | % | 18.67 | % | 19.31 | % | 19.93 | % | |
Net interest margin (1) (2) | 3.76 | % | 3.87 | % | 3.68 | % | 3.60 | % | 3.72 | % | 3.60 | % | |
Noninterest income to total revenue (3) | 17.27 | % | 19.88 | % | 24.74 | % | 25.50 | % | 25.59 | % | 26.78 | % | |
Noninterest income to avg. assets (1) | 0.66 | % | 0.80 | % | 1.05 | % | 1.08 | % | 1.11 | % | 1.16 | % | |
Noninterest exp. to avg. assets (1) | 2.22 | % | 2.05 | % | 2.16 | % | 2.20 | % | 2.26 | % | 2.32 | % | |
Noninterest expense (excluding ORE expenses, and merger-related charges) to avg. assets (1) | 1.87 | % | 1.88 | % | 2.06 | % | 2.17 | % | 2.14 | % | 2.11 | % | |
Efficiency ratio (4) | 58.22 | % | 50.77 | % | 50.67 | % | 52.08 | % | 52.24 | % | 53.69 | % | |
Avg. loans to avg. deposits | 96.45 | % | 94.87 | % | 94.45 | % | 94.05 | % | 95.06 | % | 97.38 | % | |
Securities to total assets | 11.42 | % | 13.31 | % | 11.72 | % | 13.69 | % | 11.82 | % | 11.39 | % | |
This information is preliminary and based on company data available at the time of the presentation. |
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 | |||||||||||||||
December 31, 2017 | December 31, 2016 | ||||||||||||||||
Average Balances | Interest | Rates/ Yields | Average Balances | Interest | Rates/ Yields | ||||||||||||
Interest-earning assets | |||||||||||||||||
Loans (1) | $ | 15,520,255 | $ | 188,907 | 4.87 | % | $ | 8,357,201 | $ | 94,197 | 4.60 | % | |||||
Securities | |||||||||||||||||
Taxable | 2,113,407 | 12,295 | 2.31 | % | 1,046,866 | 5,128 | 1.95 | % | |||||||||
Tax-exempt (2) | 736,915 | 5,178 | 3.74 | % | 218,230 | 1,533 | 3.75 | % | |||||||||
Federal funds sold and other | 439,167 | 1,705 | 1.54 | % | 262,404 | 635 | 0.96 | % | |||||||||
Total interest-earning assets | 18,809,744 | $ | 208,085 | 4.46 | % | 9,884,701 | $ | 101,493 | 4.11 | % | |||||||
Nonearning assets | |||||||||||||||||
Intangible assets | 1,861,739 | 566,766 | |||||||||||||||
Other nonearning assets | 1,262,017 | 586,088 | |||||||||||||||
Total assets | $ | 21,933,500 | $ | 11,037,555 | |||||||||||||
Interest-bearing liabilities | |||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||
Interest checking | $ | 2,688,637 | $ | 3,487 | 0.51 | % | $ | 1,661,762 | $ | 1,319 | 0.32 | % | |||||
Savings and money market | 6,679,876 | 11,669 | 0.69 | % | 3,807,287 | 4,314 | 0.45 | % | |||||||||
Time | 2,557,311 | 6,212 | 0.96 | % | 877,000 | 1,670 | 0.76 | % | |||||||||
Total interest-bearing deposits | 11,925,824 | 21,368 | 0.71 | % | 6,346,049 | 7,303 | 0.46 | % | |||||||||
Securities sold under agreements to repurchase | 134,983 | 129 | 0.38 | % | 82,415 | 46 | 0.22 | % | |||||||||
Federal Home Loan Bank advances | 1,465,145 | 6,052 | 1.64 | % | 307,039 | 1,064 | 1.38 | % | |||||||||
Subordinated debt and other borrowings | 477,103 | 5,805 | 4.83 | % | 319,790 | 3,667 | 4.56 | % | |||||||||
Total interest-bearing liabilities | 14,003,055 | 33,354 | 0.95 | % | 7,055,293 | 12,080 | 0.68 | % | |||||||||
Noninterest-bearing deposits | 4,165,876 | — | — | 2,445,157 | — | — | |||||||||||
Total deposits and interest-bearing liabilities | 18,168,931 | $ | 33,354 | 0.73 | % | 9,500,450 | $ | 12,080 | 0.51 | % | |||||||
Other liabilities | 57,828 | 43,421 | |||||||||||||||
Stockholders' equity | 3,706,741 | 1,493,684 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 21,933,500 | $ | 11,037,555 | |||||||||||||
Net interest income | $ | 174,731 | $ | 89,413 | |||||||||||||
Net interest spread (3) | 3.52 | % | 3.43 | % | |||||||||||||
Net interest margin (4) | 3.76 | % | 3.72 | % | |||||||||||||
(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 December 31, 2017 would have been 3.73% compared to a net interest spread of 3.60% for the quarter ended December 31, 2016. | |||||||||||||||||
(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. |
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | |||||||||||||||||
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED | |||||||||||||||||
(dollars in thousands) | Year ended | Year ended | |||||||||||||||
December 31, 2017 | December 31, 2016 | ||||||||||||||||
Average Balances | Interest | Rates/ Yields | Average Balances | Interest | Rates/ Yields | ||||||||||||
Interest-earning assets | |||||||||||||||||
Loans (1) | $ | 12,254,790 | $ | 578,286 | 4.79 | % | $ | 7,586,346 | $ | 335,735 | 4.51 | % | |||||
Securities | |||||||||||||||||
Taxable | 1,724,612 | 39,060 | 2.26 | % | 937,710 | 19,179 | 2.05 | % | |||||||||
Tax-exempt (2) | 488,478 | 13,712 | 3.76 | % | 201,842 | 6,014 | 4.00 | % | |||||||||
Federal funds sold and other | 335,491 | 5,080 | 1.51 | % | 293,542 | 2,681 | 0.91 | % | |||||||||
Total interest-earning assets | 14,803,371 | $ | 636,138 | 4.38 | % | 9,019,440 | $ | 363,609 | 4.06 | % | |||||||
Nonearning assets | |||||||||||||||||
Intangible assets | 1,273,577 | 509,899 | |||||||||||||||
Other nonearning assets | 939,269 | 495,554 | |||||||||||||||
Total assets | $ | 17,016,217 | $ | 10,024,893 | |||||||||||||
Interest-bearing liabilities | |||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||
Interest checking | $ | 2,328,350 | $ | 11,261 | 0.48 | % | $ | 1,464,671 | $ | 4,140 | 0.28 | % | |||||
Savings and money market | 5,455,607 | 32,844 | 0.60 | % | 3,426,842 | 14,289 | 0.42 | % | |||||||||
Time | 1,765,089 | 15,479 | 0.88 | % | 777,343 | 5,489 | 0.71 | % | |||||||||
Total interest-bearing deposits | 9,549,046 | 59,584 | 0.62 | % | 5,668,856 | 23,918 | 0.42 | % | |||||||||
Securities sold under agreements to repurchase | 119,055 | 406 | 0.34 | % | 75,981 | 185 | 0.24 | % | |||||||||
Federal Home Loan Bank advances | 788,237 | 12,399 | 1.57 | % | 481,711 | 4,136 | 0.86 | % | |||||||||
Subordinated debt and other borrowings | 420,790 | 20,442 | 4.86 | % | 243,905 | 10,376 | 4.25 | % | |||||||||
Total interest-bearing liabilities | 10,877,128 | 92,831 | 0.85 | % | 6,470,453 | 38,615 | 0.60 | % | |||||||||
Noninterest-bearing deposits | 3,331,741 | — | — | 2,179,398 | — | — | |||||||||||
Total deposits and interest-bearing liabilities | 14,208,869 | $ | 92,831 | 0.65 | % | 8,649,851 | $ | 38,615 | 0.45 | % | |||||||
Other liabilities | 30,218 | 31,349 | |||||||||||||||
Stockholders' equity | 2,777,130 | 1,343,693 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 17,016,217 | $ | 10,024,893 | |||||||||||||
Net interest income | $ | 543,307 | $ | 324,994 | |||||||||||||
Net interest spread (3) | 3.53 | % | 3.46 | % | |||||||||||||
Net interest margin (4) | 3.76 | % | 3.70 | % | |||||||||||||
(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 year ended December 31, 2017 would have been 3.73% compared to a net interest spread of 3.61% for the year ended December 31, 2016. | |||||||||||||||||
(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. |
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | ||||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | ||||||||||||||||||
(dollars in thousands) | December | September | June | March | December | September | ||||||||||||
2017 | 2017 | 2017 | 2017 | 2016 | 2016 | |||||||||||||
Asset quality information and ratios: | ||||||||||||||||||
Nonperforming assets: | ||||||||||||||||||
Nonaccrual loans | $ | 57,455 | 53,414 | 40,217 | 25,051 | 27,577 | 28,487 | |||||||||||
Other real estate (ORE) and other nonperforming assets (NPAs) | 28,028 | 24,682 | 25,153 | 6,235 | 6,090 | 5,656 | ||||||||||||
Total nonperforming assets | $ | 85,483 | $ | 78,096 | $ | 65,370 | $ | 31,286 | $ | 33,667 | $ | 34,143 | ||||||
Past due loans over 90 days and still accruing interest | $ | 4,139 | 3,010 | 1,691 | 1,110 | 1,134 | 2,093 | |||||||||||
Accruing troubled debt restructurings (5) | $ | 6,612 | 15,157 | 14,248 | 14,591 | 15,009 | 8,503 | |||||||||||
Accruing purchase credit impaired loans | $ | 26,719 | 29,254 | 34,874 | — | — | — | |||||||||||
Net loan charge-offs | $ | 4,200 | 3,705 | 7,499 | 4,282 | 4,314 | 7,271 | |||||||||||
Allowance for loan losses to nonaccrual loans | 117.0 | % | 122.0 | % | 154.0 | % | 232.9 | % | 213.9 | % | 211.5 | % | ||||||
As a percentage of total loans: | ||||||||||||||||||
Past due accruing loans over 30 days | 0.38 | % | 0.24 | % | 0.20 | % | 0.17 | % | 0.26 | % | 0.24 | % | ||||||
Potential problem loans (6) | 1.05 | % | 0.97 | % | 1.26 | % | 1.27 | % | 1.36 | % | 1.13 | % | ||||||
Allowance for loan losses | 0.43 | % | 0.43 | % | 0.42 | % | 0.68 | % | 0.70 | % | 0.73 | % | ||||||
Nonperforming assets to total loans, ORE and other NPAs | 0.55 | % | 0.51 | % | 0.44 | % | 0.36 | % | 0.40 | % | 0.41 | % | ||||||
Nonperforming assets to total assets | 0.38 | % | 0.36 | % | 0.31 | % | 0.27 | % | 0.30 | % | 0.31 | % | ||||||
Classified asset ratio (Pinnacle Bank) (8) | 12.9 | % | 12.7 | % | 14.2 | % | 12.9 | % | 16.4 | % | 15.2 | % | ||||||
Annualized net loan charge-offs to avg. loans (7) | 0.13 | % | 0.14 | % | 0.17 | % | 0.20 | % | 0.21 | % | 0.35 | % | ||||||
Wtd. avg. commercial loan internal risk ratings (6) | 4.5 | 4.5 | 4.5 | 4.5 | 4.5 | 4.6 | ||||||||||||
Interest rates and yields: | ||||||||||||||||||
Loans | 4.87 | % | 4.91 | % | 4.66 | % | 4.49 | % | 4.60 | % | 4.43 | % | ||||||
Securities | 2.68 | % | 2.64 | % | 2.51 | % | 2.44 | % | 2.26 | % | 2.29 | % | ||||||
Total earning assets | 4.46 | % | 4.50 | % | 4.21 | % | 4.06 | % | 4.11 | % | 3.98 | % | ||||||
Total deposits, including non-interest bearing | 0.53 | % | 0.48 | % | 0.42 | % | 0.36 | % | 0.33 | % | 0.31 | % | ||||||
Securities sold under agreements to repurchase | 0.38 | % | 0.37 | % | 0.32 | % | 0.25 | % | 0.22 | % | 0.23 | % | ||||||
FHLB advances | 1.64 | % | 1.48 | % | 1.49 | % | 1.72 | % | 1.38 | % | 0.87 | % | ||||||
Subordinated debt and other borrowings | 4.83 | % | 4.84 | % | 4.87 | % | 4.92 | % | 4.56 | % | 4.15 | % | ||||||
Total deposits and interest-bearing liabilities | 0.73 | % | 0.66 | % | 0.61 | % | 0.56 | % | 0.51 | % | 0.46 | % | ||||||
Pinnacle Financial Partners capital ratios (8): | ||||||||||||||||||
Stockholders' equity to total assets | 16.7 | % | 16.9 | % | 17.3 | % | 14.7 | % | 13.4 | % | 13.4 | % | ||||||
Common equity Tier one | 9.2 | % | 9.4 | % | 9.5 | % | 9.8 | % | 7.9 | % | 7.6 | % | ||||||
Tier one risk-based | 9.2 | % | 9.4 | % | 9.5 | % | 10.6 | % | 8.6 | % | 8.4 | % | ||||||
Total risk-based | 12.0 | % | 12.3 | % | 12.6 | % | 13.7 | % | 11.9 | % | 10.5 | % | ||||||
Leverage | 8.7 | % | 8.9 | % | 14.5 | % | 10.3 | % | 8.6 | % | 8.3 | % | ||||||
Tangible common equity to tangible assets | 9.1 | % | 9.1 | % | 9.2 | % | 10.4 | % | 8.8 | % | 8.7 | % | ||||||
Pinnacle Bank ratios: | ||||||||||||||||||
Common equity Tier one | 10.3 | % | 10.7 | % | 11.0 | % | 11.1 | % | 9.3 | % | 8.6 | % | ||||||
Tier one risk-based | 10.3 | % | 10.7 | % | 11.0 | % | 11.1 | % | 9.3 | % | 8.6 | % | ||||||
Total risk-based | 11.4 | % | 11.8 | % | 12.1 | % | 12.9 | % | 11.2 | % | 10.5 | % | ||||||
Leverage | 9.7 | % | 10.1 | % | 16.7 | % | 10.9 | % | 9.2 | % | 8.6 | % | ||||||
Construction and land development loans as a percent of total capital (19) | 89.4 | % | 88.1 | % | 85.1 | % | 75.2 | % | 80.3 | % | 87.9 | % | ||||||
Non-owner occupied commercial real estate and multi-family as a percent of total capital (19) | 297.1 | % | 289.1 | % | 286.4 | % | 220.9 | % | 256.0 | % | 265.5 | % | ||||||
This information is preliminary and based on company data available at the time of the presentation. |
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | |||||||||||||
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | |||||||||||||
(dollars in thousands, except per share data) | December | September | June | March | December | September | |||||||
2017 | 2017 | 2017 | 2017 | 2016 | 2016 | ||||||||
Per share data: | |||||||||||||
Earnings – basic | $ | 0.35 | 0.84 | 0.81 | 0.83 | 0.79 | 0.71 | ||||||
Earnings - basic, excluding merger-related charges, gains and losses on sales of investment securities and revaluation of deferred tax assets | $ | 0.98 | 0.91 | 0.85 | 0.84 | 0.84 | 0.79 | ||||||
Earnings – diluted | $ | 0.35 | 0.83 | 0.80 | 0.82 | 0.78 | 0.71 | ||||||
Earnings - diluted, excluding merger-related charges, gains and losses on sales of investment securities and revaluation of deferred tax assets | $ | 0.97 | 0.90 | 0.84 | 0.83 | 0.83 | 0.78 | ||||||
Common dividends per share | $ | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | ||||||
Book value per common share at quarter end (9) | $ | 47.70 | 47.31 | 46.56 | 34.61 | 32.28 | 31.97 | ||||||
Tangible book value per common share at quarter end (9) | $ | 23.71 | 23.32 | 22.58 | 23.25 | 20.06 | 19.69 | ||||||
Investor information: | |||||||||||||
Closing sales price on last trading day of quarter | $ | 66.30 | 66.95 | 62.80 | 66.45 | 69.30 | 54.08 | ||||||
High closing sales price during quarter | $ | 69.30 | 66.95 | 69.10 | 71.05 | 71.15 | 57.26 | ||||||
Low closing sales price during quarter | $ | 63.85 | 58.50 | 60.00 | 66.45 | 49.70 | 47.44 | ||||||
Other information: | |||||||||||||
Gains on mortgage loans sold: | |||||||||||||
Mortgage loan sales: | |||||||||||||
Gross loans sold | $ | 289,149 | 299,763 | 245,574 | 160,740 | 221,126 | 214,394 | ||||||
Gross fees (10) | $ | 7,364 | 9,050 | 7,361 | 4,427 | 6,535 | 6,702 | ||||||
Gross fees as a percentage of loans originated | 2.55 | % | 3.02 | % | 3.00 | % | 2.75 | % | 2.96 | % | 3.13 | % | |
Net gain on mortgage loans sold | $ | 3,839 | 5,963 | 4,668 | 4,155 | 2,869 | 5,097 | ||||||
Investment gains (losses) on sales of securities, net (15) | $ | (8,265 | ) | — | — | — | 395 | — | |||||
Brokerage account assets, at quarter end (11) | $ | 3,266,936 | 2,979,936 | 2,815,501 | 2,280,355 | 2,198,334 | 2,090,316 | ||||||
Trust account managed assets, at quarter end | $ | 1,837,233 | 1,880,488 | 1,804,811 | 1,011,964 | 1,002,742 | 978,356 | ||||||
Core deposits (12) | $ | 14,257,108 | 13,609,194 | 13,529,398 | 8,288,247 | 7,834,973 | 7,714,552 | ||||||
Core deposits to total funding (12) | 77.6 | % | 75.6 | % | 78.9 | % | 83.4 | % | 81.6 | % | 82.1 | % | |
Risk-weighted assets | $ | 18,812,653 | 18,164,765 | 17,285,264 | 10,489,944 | 10,210,711 | 10,020,690 | ||||||
Number of offices | 114 | 123 | 121 | 45 | 45 | 45 | |||||||
Total deposits per office | $ | 125,062 | 110,644 | 111,813 | 184,183 | 174,111 | 171,434 | ||||||
Total assets per full-time equivalent employee | $ | 10,415 | 9,930 | 9,398 | 9,630 | 9,491 | 9,323 | ||||||
Annualized revenues per full-time equivalent employee | $ | 393.1 | 390.8 | 255.7 | 396.9 | 405.3 | 399.8 | ||||||
Annualized expenses per full-time equivalent employee | $ | 228.8 | 198.4 | 129.6 | 206.7 | 211.7 | 214.6 | ||||||
Number of employees (full-time equivalent) | 2,132.0 | 2,194.5 | 2,222.5 | 1,217.5 | 1,179.5 | 1,177.5 | |||||||
Associate retention rate (13) | 93.5 | % | 98.3 | % | 87.1 | % | 92.9 | % | 92.7 | % | 93.9 | % | |
This information is preliminary and based on company data available at the time of the presentation. |
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | |||||||||||||
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | |||||||||||||
(dollars in thousands, except per share data) | December | September | June | March | December | September | |||||||
2017 | 2017 | 2017 | 2017 | 2016 | 2016 | ||||||||
Net interest income | $ | 174,731 | 173,182 | 106,627 | 88,767 | 89,413 | 86,635 | ||||||
Noninterest income | 36,488 | 42,977 | 35,057 | 30,382 | 30,743 | 31,692 | |||||||
Total revenues | 211,219 | 216,159 | 141,684 | 119,149 | 120,156 | 118,327 | |||||||
Less: Investment (gains) and losses on sales of securities, net | 8,265 | — | — | — | (395 | ) | — | ||||||
Total revenues excluding the impact of investment (gains) and losses on sales of securities, net | 219,484 | 216,159 | 141,684 | 119,149 | 119,761 | 118,327 | |||||||
Noninterest expense | 122,973 | 109,736 | 71,798 | 62,054 | 62,765 | 63,526 | |||||||
Less: Other real estate expense | 252 | 512 | 63 | 252 | 44 | 17 | |||||||
Merger-related charges | 19,103 | 8,847 | 3,221 | 672 | 3,264 | 5,672 | |||||||
Noninterest expense excluding the impact of other real estate expense and merger-related charges | 103,618 | 100,377 | 68,514 | 61,130 | 59,457 | 57,837 | |||||||
Adjusted pre-tax pre-provision income (14) | $ | 115,866 | 115,782 | 73,170 | 58,019 | 60,304 | 60,490 | ||||||
Efficiency ratio (4) | 58.22 | % | 50.77 | % | 50.67 | % | 52.08 | % | 52.24 | % | 53.69 | % | |
Adjustment due to investment gains and losses, ORE expense and merger-related charges | (11.01 | %) | (4.33 | %) | (2.30 | %) | (0.77 | %) | (2.59 | %) | (4.81 | %) | |
Efficiency ratio (excluding investment gains and losses, ORE expense, and merger-related charges) | 47.21 | % | 46.44 | % | 48.37 | % | 51.31 | % | 49.65 | % | 48.88 | % | |
Total average assets | $ | 21,933,500 | 21,211,459 | 13,335,359 | 11,421,654 | 11,037,555 | 10,883,547 | ||||||
Noninterest income to avg. assets | 0.66 | % | 0.80 | % | 1.05 | % | 1.08 | % | 1.11 | % | 1.16 | % | |
Adjustment due investment (gains) and losses on sales of securities, net | 0.15 | % | — | % | — | % | — | % | (0.02 | )% | — | % | |
Noninterest income (excluding investment (gains) losses on sales of securities, net) to avg. assets | 0.81 | % | 0.80 | % | 1.05 | % | 1.08 | % | 1.09 | % | 1.16 | % | |
Noninterest expense to avg. assets | 2.22 | % | 2.05 | % | 2.16 | % | 2.20 | % | 2.26 | % | 2.32 | % | |
Adjustment due to ORE expenses and merger-related charges | (0.35 | %) | (0.17 | %) | (0.10 | %) | (0.03 | %) | (0.12 | %) | (0.21 | %) | |
Noninterest expense (excluding ORE expense, and merger-related charges) to avg. assets (1) | 1.87 | % | 1.88 | % | 2.06 | % | 2.17 | % | 2.14 | % | 2.11 | % | |
Net income | $ | 26,798 | 64,442 | 43,086 | 39,653 | 36,097 | 32,377 | ||||||
Merger-related charges | 19,103 | 8,847 | 3,221 | 672 | 3,264 | 5,672 | |||||||
Investment (gains) losses | 8,265 | — | — | — | (395 | ) | — | ||||||
Tax effect on merger-related charges and investment (gains) losses (18) | (10,736 | ) | (3,471 | ) | (1,264 | ) | (264 | ) | (1,126 | ) | (2,225 | ) | |
Revaluation of deferred tax assets | 31,486 | — | — | — | — | — | |||||||
Net income excluding merger-related charges, gains and losses on sale of investment securities and revaluation of deferred tax assets | $ | 74,916 | 69,818 | 45,043 | 40,061 | 37,840 | 35,824 | ||||||
Basic earnings per share | $ | 0.35 | 0.84 | 0.81 | 0.83 | 0.79 | 0.71 | ||||||
Adjustment due to merger-related charges, gains and losses on sale of investment securities and revaluation of deferred tax assets | 0.63 | 0.07 | 0.04 | 0.01 | 0.04 | 0.08 | |||||||
Basic earnings per share excluding merger-related charges, gains and losses on sale of investment securities and revaluation of deferred tax assets | $ | 0.98 | 0.91 | 0.85 | 0.84 | 0.83 | 0.79 | ||||||
Diluted earnings per share | $ | 0.35 | 0.83 | 0.80 | 0.82 | 0.78 | 0.71 | ||||||
Adjustment due to merger-related charges, gains and losses on sale of investment securities and revaluation of deferred tax assets | 0.62 | 0.07 | 0.04 | 0.01 | 0.04 | 0.07 | |||||||
Diluted earnings per share excluding merger-related charges, gains and losses on sale of investment securities and revaluation of deferred tax assets | $ | 0.97 | 0.90 | 0.84 | 0.83 | 0.82 | 0.78 | ||||||
This information is preliminary and based on company data available at the time of the presentation. |
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | |||||||||||||
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | |||||||||||||
(dollars in thousands, except per share data) | December | September | June | March | December | September | |||||||
2017 | 2017 | 2017 | 2017 | 2016 | 2016 | ||||||||
Return on average assets | 0.48 | % | 1.21 | % | 1.30 | % | 1.41 | % | 1.30 | % | 1.18 | % | |
Adjustment due to merger-related charges, gains and losses on sales of investment securities and revaluation of deferred tax assets | 0.88 | % | 0.10 | % | 0.05 | % | 0.01 | % | 0.06 | % | 0.13 | % | |
Return on average assets (excluding merger-related charges, gains and losses on sales of investment securities and revaluation of deferred tax assets) | 1.36 | % | 1.31 | % | 1.35 | % | 1.42 | % | 1.36 | % | 1.31 | % | |
Tangible assets: | |||||||||||||
Total assets | $ | 22,205,700 | 21,790,371 | 20,886,154 | 11,724,601 | 11,194,623 | 10,978,390 | ||||||
Less: Goodwill | (1,808,002 | ) | (1,802,534 | ) | (1,800,742 | ) | (551,546 | ) | (551,594 | ) | (550,580 | ) | |
Core deposit and other intangible assets | (56,710 | ) | (59,781 | ) | (60,964 | ) | (13,908 | ) | (15,104 | ) | (16,241 | ) | |
Net tangible assets | $ | 20,340,988 | 19,928,056 | 19,024,448 | 11,159,147 | 10,627,925 | 10,411,569 | ||||||
Tangible equity: | |||||||||||||
Total stockholders' equity | $ | 3,707,952 | 3,673,349 | 3,615,327 | 1,723,075 | 1,496,696 | 1,475,644 | ||||||
Less: Goodwill | (1,808,002 | ) | (1,802,534 | ) | (1,800,742 | ) | (551,546 | ) | (551,594 | ) | (550,580 | ) | |
Core deposit and other intangible assets | (56,710 | ) | (59,781 | ) | (60,964 | ) | (13,908 | ) | (15,104 | ) | (16,241 | ) | |
Net tangible common equity | $ | 1,843,240 | 1,811,034 | 1,753,621 | 1,157,621 | 929,998 | 908,823 | ||||||
Ratio of tangible common equity to tangible assets | 9.06 | % | 9.09 | % | 9.22 | % | 10.37 | % | 8.75 | % | 8.73 | % | |
Average tangible assets: | |||||||||||||
Average assets | $ | 21,933,500 | 21,211,459 | 13,335,359 | 11,421,654 | 11,037,555 | 10,883,547 | ||||||
Less: Average goodwill | (1,803,546 | ) | (1,800,761 | ) | (760,646 | ) | (551,548 | ) | (551,042 | ) | (541,153 | ) | |
Core deposit and other intangible assets | (58,192 | ) | (59,521 | ) | (23,957 | ) | (14,674 | ) | (15,724 | ) | (11,296 | ) | |
Net average tangible assets | $ | 20,071,762 | 19,351,177 | 12,550,756 | 10,855,432 | 10,470,789 | 10,331,098 | ||||||
Return on average assets | 0.48 | % | 1.21 | % | 1.30 | % | 1.41 | % | 1.30 | % | 1.18 | % | |
Adjustment due to goodwill, core deposit and other intangible assets | 0.05 | % | 0.11 | % | 0.08 | % | 0.06 | % | 0.06 | % | 0.09 | % | |
Return on average tangible assets | 0.53 | % | 1.32 | % | 1.38 | % | 1.47 | % | 1.36 | % | 1.27 | % | |
Adjustment due to merger-related charges, gains and losses on sales of investment securities and revaluation of deferred tax assets | 0.95 | % | 0.11 | % | 0.06 | % | 0.01 | % | 0.08 | % | 0.12 | % | |
Return on average tangible assets (excluding merger-related charges, gains and losses on sales of investment securities and revaluation of deferred tax assets) | 1.48 | % | 1.43 | % | 1.44 | % | 1.48 | % | 1.44 | % | 1.39 | % | |
This information is preliminary and based on company data available at the time of the presentation. |
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES | |||||||||||||
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | |||||||||||||
(dollars in thousands, except per share data) | December | September | June | March | December | September | |||||||
2017 | 2017 | 2017 | 2017 | 2016 | 2016 | ||||||||
Average tangible stockholders' equity: | |||||||||||||
Average stockholders' equity | $ | 3,706,741 | 3,655,029 | 2,057,505 | 1,657,072 | 1,493,684 | 1,442,440 | ||||||
Less: Average goodwill | (1,803,546 | ) | (1,800,761 | ) | (760,646 | ) | (551,548 | ) | (551,042 | ) | (541,153 | ) | |
Core deposit and other intangible assets | (58,192 | ) | (59,521 | ) | (23,957 | ) | (14,674 | ) | (15,724 | ) | (11,296 | ) | |
Net average tangible common equity | $ | 1,845,003 | 1,794,747 | 1,272,902 | 1,090,850 | 926,918 | 889,991 | ||||||
Return on average common equity | 2.87 | % | 6.99 | % | 8.40 | % | 9.70 | % | 9.61 | % | 8.93 | % | |
Adjustment due to goodwill, core deposit and other intangible assets | 2.89 | % | 7.26 | % | 5.18 | % | 5.04 | % | 5.88 | % | 5.54 | % | |
Return on average tangible common equity (1) | 5.76 | % | 14.25 | % | 13.58 | % | 14.74 | % | 15.49 | % | 14.47 | % | |
Adjustment due to merger-related charges, gains and losses on sales of investment securities and revaluation of deferred tax assets | 10.35 | % | 1.18 | % | 0.61 | % | 0.15 | % | 0.75 | % | 1.54 | % | |
Return on average tangible common equity (excluding merger-related charges, gains and losses on sales of investment securities and revaluation of deferred tax assets) | 16.11 | % | 15.43 | % | 14.19 | % | 14.89 | % | 16.24 | % | 16.01 | % | |
Total average assets | $ | 21,933,500 | 21,211,459 | 13,335,359 | 11,421,654 | 11,037,555 | 10,883,547 | ||||||
Revenue per diluted share | $ | 2.73 | 2.80 | 2.64 | 2.46 | 2.61 | 2.58 | ||||||
Adjustment due to investment (gains) losses on sales of securities, net | 0.10 | — | — | — | (0.01 | ) | — | ||||||
Revenue per diluted share (excluding investment (gains) losses on sales of securities, net) | $ | 2.83 | 2.80 | 2.64 | 2.46 | 2.60 | 2.58 | ||||||
Net interest margin | 3.76 | % | 3.87 | % | 3.68 | % | 3.60 | % | 3.72 | % | 3.60 | % | |
Adjustment due to accretion from fair value accounting | 0.43 | % | 0.45 | % | 0.23 | % | 0.21 | % | 0.32 | % | 0.21 | % | |
Core net interest margin | 3.33 | % | 3.42 | % | 3.45 | % | 3.39 | % | 3.40 | % | 3.39 | % | |
Equity Method Investment (17) | |||||||||||||
Fee income from BHG, net of amortization | $ | 12,444 | 8,937 | 8,755 | 7,823 | 8,136 | 8,475 | ||||||
Funding cost to support investment | 2,034 | 1,951 | 1,844 | 1,775 | 1,797 | 1,760 | |||||||
Pre-tax impact of BHG | 10,410 | 6,986 | 6,911 | 6,048 | 6,339 | 6,715 | |||||||
Income tax expense at statutory rates | 4,084 | 2,741 | 2,711 | 2,373 | 2,487 | 2,634 | |||||||
Earnings attributable to BHG | $ | 6,326 | 4,245 | 4,200 | 3,675 | 3,852 | 4,081 | ||||||
Basic earnings per share attributable to BHG | $ | 0.08 | 0.06 | 0.08 | 0.08 | 0.08 | 0.09 | ||||||
Diluted earnings per share attributable to BHG | $ | 0.08 | 0.06 | 0.08 | 0.08 | 0.08 | 0.09 | ||||||
This information is preliminary and based on company data available at the time of the presentation. |
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES |
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED |
1. Ratios are presented on an annualized basis. |
2. Net interest margin is the result of net interest income on a tax equivalent basis divided by average interest earning assets. |
3. Total revenue is equal to the sum of net interest income and noninterest income. |
4. Efficiency ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income. |
5. Troubled debt prepayments 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. Data presented represents legacy Pinnacle portfolio at period end date. |
7. Annualized net loan charge-offs to average loans ratios are computed by annualizing quarter-to-date net loan charge-offs and dividing the result by average loans for the quarter-to-date period. |
8. Capital ratios are calculated using regulatory reporting regulations enacted for such period and are defined as follows: |
Equity to total assets – End of period total stockholders' equity as a percentage of end of period assets. |
Tangible common equity to total assets - End of period total stockholders' equity less end of period goodwill, core deposit and other intangibles as a percentage of end of period assets. |
Leverage – Tier one capital (pursuant to risk-based capital guidelines) as a percentage of adjusted average assets. |
Tier one risk-based – Tier one capital (pursuant to risk-based capital guidelines) as a percentage of total risk-weighted assets. |
Total risk-based – Total capital (pursuant to risk-based capital guidelines) as a percentage of total risk-weighted assets. |
Classified asset - Classified assets as a percentage of Tier 1 capital plus allowance for loan losses. |
Tier one common equity to risk weighted assets - Tier 1 capital (pursuant to risk-based capital guidelines) less the amount of any preferred stock or subordinated indebtedness that is considered as a component of Tier 1 capital as a percentage of total risk-weighted assets. |
9. Book value per share computed by dividing total stockholders' equity by common shares outstanding. |
10. Amounts are included in the statement of operations in "Gains on mortgage loans sold, net", net of commissions paid on such amounts. |
11. At fair value, based on information obtained from Pinnacle's third party broker/dealer for non-FDIC insured financial products and services. |
12. Core deposits include all transaction deposit accounts, money market and savings accounts and all certificates of deposit issued in a denomination of less than $250,000. The ratio noted above represents total core deposits divided by total funding, which includes total deposits, FHLB advances, securities sold under agreements to repurchase, subordinated indebtedness and all other interest-bearing liabilities. |
13. Associate retention rate is computed by dividing the number of associates employed at quarter end less the number of associates that have resigned in the last 12 months by the number of associates employed at quarter end. Associate retention rate does not include associates at acquired institutions displaced by merger. |
14. Adjusted pre-tax, pre-provision income excludes the impact of investment gains and losses on sales and impairments of securities, net, as well as other real estate owned expenses and merger-related charges. |
15. 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. |
16. 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. |
17. Earnings from equity method investment includes the impact of the issuance of subordinated debt as well as the funding costs of the overall franchise. Income tax expense is calculated using statutory tax rates. |
18. Tax effect calculated using the blended statutory rate of 39.23% for all periods presented. |
19. Calculated using the same guidelines as are used in the Federal Financial Institutions Examination Council's Uniform Bank Performance Report. |
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