We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Pinnacle Financial Partners Inc | NASDAQ:PNFP | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 82.80 | 82.23 | 83.54 | 0 | 11:58:23 |
2Q23 annualized linked-quarter, end-of-period loans grew 11.3%, while deposits grew 17.1%
Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported net income per diluted common share of $2.54 for the quarter ended June 30, 2023, compared to net income per diluted common share of $1.86 for the quarter ended June 30, 2022, an increase of 36.6 percent. Net income per diluted common share was $4.30 for the six months ended June 30, 2023, compared to $3.51 for the six months ended June 30, 2022, an increase of approximately 22.5 percent.
Excluding losses on the sale of investment securities, other real estate (ORE) expense and gains on the sale of fixed assets associated with the firm's sale-leaseback transaction for the three months ended June 30, 2023 and 2022, net income per diluted common share was $1.79 for the three months ended June 30, 2023, compared to $1.86 for the three months ended June 30, 2022, a decrease of 3.8 percent. Excluding losses on the sale of investment securities, other real estate (ORE) expense and gains on the sale of fixed assets associated with our sale-leaseback transaction for the six months ended June 30, 2023 and 2022, net income per diluted common share was $3.55 for the six months ended June 30, 2023, compared to $3.51 for the six months ended June 30, 2022, an increase of 1.1 percent.
"This proved to be another sound operating quarter especially given the results of several critical performance metrics such as asset quality, net interest income growth and tangible book value accretion," said M. Terry Turner, Pinnacle's president and chief executive officer. "Second quarter results continue to reflect our longstanding and ongoing ability to leverage our award-winning work environment and market-leading net promoter scores to take market share from our large national and regional competitors. The second quarter of 2023 also saw us increase our thrust and focus on gathering client funding, which is the 'raw material' that we need to support our outsized loan and earnings growth over time. Consequently, our relationship managers attracted client funding from across our footprint, which resulted in deposit growth of over $1.5 billion this quarter. Loan growth during the second quarter of 2023 was $855 million, or 11.3% linked-quarter annualized. This amount is consistent with the outlook we provided in connection with our first quarter results and is reflective of our deliberate efforts to moderate loan growth by constraining certain asset classes and elevating loan pricing.
"We also added 20 revenue producers during the quarter. Despite all the uncertainty plaguing the industry, we continue to invest in our proven relationship banking model and believe, even during times such as these, that a consistent focus on attracting and retaining highly successful revenue producers and their clients will enable us to continue compounding earnings and accreting tangible book value more reliably than peers.
"Our second quarter diluted earnings per share includes the positive impact of $0.84 per diluted common share from a sale-leaseback transaction that was executed during the second quarter. The gain from the sale-leaseback transaction was partially offset by the realized net loss of approximately $0.10 per diluted common share from the sale of approximately $174.0 million in available-for-sale investment securities."
BALANCE SHEET GROWTH:
Total assets at June 30, 2023 were $46.9 billion, an increase of approximately $6.8 billion from June 30, 2022 and $1.8 billion from March 31, 2023, reflecting a year-over-year increase of 16.8 percent and a linked-quarter annualized increase of 15.6 percent, respectively. A further analysis of select balance sheet trends follows:
Balances at
Linked- Quarter Annualized % Change
Balances at
Year-over-Year % Change
(dollars in thousands)
June 30, 2023
March 31, 2023
June 30, 2022
Loans
$
31,153,290
$
30,297,871
11.3
%
$
26,333,096
18.3
%
Less: PPP loans
4,650
6,382
NM
51,100
(90.9
)%
Loans excluding PPP loans
31,148,640
30,291,489
11.3
%
26,281,996
18.5
%
Securities and other interest-earning assets
10,625,301
10,080,769
21.6
%
9,342,543
13.7
%
Total interest-earning assets excluding PPP loans
$
41,773,941
$
40,372,258
13.9
%
$
35,624,539
17.3
%
Core deposits:
Noninterest-bearing deposits
$
8,436,799
$
9,018,439
(25.8
)%
$
11,058,198
(23.7
)%
Interest-bearing core deposits(1)
24,343,968
23,035,672
22.7
%
18,953,246
28.4
%
Noncore deposits and other funding(2)
7,731,082
6,865,003
50.5
%
4,496,117
72.0
%
Total funding
$
40,511,849
$
38,919,114
16.4
%
$
34,507,561
17.4
%
(1):
Interest-bearing core deposits are interest-bearing deposits, money market accounts, time deposits less than $250,000 including certain reciprocating time and money market deposits issued through the IntraFi Network.
(2):
Noncore deposits and other funding consists of time deposits greater than $250,000, securities sold under agreements to repurchase, public funds, brokered deposits, FHLB advances and subordinated debt.
"End-of-period loans grew by $855.4 million over last quarter, and end-of-period deposits grew by $1.5 billion over the same period, reflecting an annualized linked-quarter growth rate of 11.3 percent and 17.1 percent, respectfully," Turner said. "We continued to experience a mix shift in our deposits as more deposits moved from noninterest-bearing accounts to interest-bearing accounts, albeit at a lesser pace than the previous quarters. We anticipate that the reduction in noninterest bearing balances will slow from the pace of previous quarters this year.
"Our cumulative deposit beta at June 30, 2023 increased to 48.0 percent, which is consistent with our expectations. We believe with more rate hikes in the forecast for 2023, our funding costs will increase just not at the same rate as the second quarter increase. Furthermore, we anticipate that the impact of our hiring and usual seasonal growth will enable us to continue to grow our deposits for the remainder of the year at levels that should support our current outlook of high single-digit percentage deposit growth for 2023 over 2022."
PRE-TAX, PRE-PROVISION NET REVENUE (PPNR) GROWTH:
Pre-tax, pre-provision net revenues (PPNR) for the three and six months ended June 30, 2023 were $277.6 million and $467.6 million, respectively, inclusive of $85.7 million of gain on the sale of fixed assets as a result of the sale-leaseback transaction completed in the three months ended June 30, 2023, an increase of 43.1 percent and 32.0 percent, respectively, from the $194.0 million and $354.3 million, respectively, recognized in the three and six months ended June 30, 2022.
Three months ended
Six months ended
June 30,
June 30,
(dollars in thousands)
2023
2022
% change
2023
2022
% change
Revenues:
Net interest income
$
315,393
$
264,574
19.2
%
$
627,624
$
504,049
24.5
%
Noninterest income
173,839
125,502
38.5
%
263,368
228,998
15.0
%
Total revenues
489,232
390,076
25.4
%
890,992
733,047
21.5
%
Noninterest expense
211,641
196,038
8.0
%
423,368
378,699
11.8
%
Pre-tax, pre-provision net revenue (PPNR)
277,591
194,038
43.1
%
467,624
354,348
32.0
%
Adjustments:
Investment losses on sales of securities, net
9,961
—
NM
9,961
61
NM
Gain on the sale of fixed assets as a result of sale leaseback
(85,692
)
—
NM
(85,692
)
—
NM
ORE expense
58
86
(32.6
)%
157
191
(17.8
)%
Adjusted PPNR
$
201,918
$
194,124
4.0
%
$
392,050
$
354,600
10.6
%
"Our sale-leaseback transaction resulted in an $85.7 million gain on the sale of fixed assets during the second quarter of 2023," said Harold R. Carpenter, Pinnacle's chief financial officer. "We have reviewed the potential for a sale-leaseback transaction on several occasions over the years. In the fourth quarter of last year, as rates were increasing, it became much more opportunistic. After much diligence, we elected to execute the transaction during the second quarter of 2023.
"As to revenues for the second quarter, our net interest income for the second quarter was up by $3.2 million from the first quarter. Our current outlook is that growth in net interest income for fiscal year 2023 over 2022 should approximate a low-teens percentage increase. Net growth in fee income in the second quarter of 2023 compared to the first quarter was largely attributable to the gain on sale of fixed assets recognized in connection with the sale-leaseback transaction, offset by $10.0 million in net losses from the sale of investment securities. The second quarter sale of investment securities provided us the opportunity to increase our net interest income as the proceeds of the sale are now achieving a higher yield and thus serve to minimize the financial impact of higher lease occupancy costs from the sale-leaseback transaction. BHG revenues also increased $7.8 million from the first to the second quarter of 2023.
"Expenses were essentially flat when comparing second quarter to first quarter of 2023. Salaries and employee benefits expense decreased on a linked-quarter basis, as employee benefits were seasonally lower in the second quarter of 2023 from the first quarter. Occupancy expense increased this quarter as a result of the sale-leaseback transaction. We anticipate a similar dollar increase in occupancy costs next quarter given the sale-leaseback transaction was consummated in multiple transactions that occurred throughout the second quarter and thus will be fully integrated into our results in the third quarter. We will continue to monitor our expense burden in light of our anticipated revenue growth and adjust incentives and/or reduce other expenses through either reduced hiring, deferral of anticipated projects or implementation of other cost-saving measures as required."
PROFITABILITY, LIQUIDITY AND SOUNDNESS:
Three months ended
Six months ended
June 30, 2023
March 31, 2023
June 30, 2022
June 30, 2023
June 30, 2022
Net interest margin
3.20
%
3.40
%
3.17
%
3.30
%
3.03
%
Efficiency ratio
43.26
%
52.70
%
50.26
%
47.52
%
51.66
%
Return on average assets
1.71
%
1.26
%
1.46
%
1.49
%
1.39
%
Return on average tangible common equity (TCE)
21.06
%
15.43
%
17.62
%
18.33
%
16.63
%
As of
June 30, 2023
March 31, 2023
June 30, 2022
Shareholders' equity to total assets
12.5
%
12.6
%
13.2
%
Average loan to deposit ratio
84.94
%
83.97
%
80.67
%
Uninsured/uncollateralized deposits to total deposits
28.31
%
33.23
%
41.38
%
Tangible common equity to tangible assets
8.3
%
8.3
%
8.4
%
Book value per common share
$
73.32
$
71.24
$
66.74
Tangible book value per common share
$
48.85
$
46.75
$
42.08
Annualized net loan charge-offs to avg. loans (1)
0.13
%
0.10
%
0.01
%
Nonperforming assets to total loans, ORE and other nonperforming assets (NPAs)
0.15
%
0.15
%
0.09
%
Classified asset ratio (Pinnacle Bank) (2)
3.30
%
2.70
%
2.90
%
Allowance for credit losses (ACL) to total loans
1.08
%
1.04
%
1.03
%
(1):
Annualized net loan charge-offs to average loans ratios are computed by annualizing quarterly net loan charge-offs and dividing the result by average loans for the quarter.
(2):
Classified assets as a percentage of Tier 1 capital plus allowance for credit losses.
"Our net interest margin declined on a linked-quarter basis by approximately 20 basis points," Carpenter said. "Increased deposit pricing and the continued reduction in our noninterest-bearing deposit account balances as a result of a shift in deposit mix were the primary contributors to our decreased net interest margin. Also contributing to the reduced net interest margin was an elevated level of on-balance sheet liquidity, which, as we noted last quarter, we acquired during mid-March given the heightened levels of uncertainty in the broader banking industry. The impact of this elevated liquidity should decrease over the remainder of 2023 as we seek to deploy some of this excess into both loan growth and the reduction of wholesale funding.
"We continue to experience reductions in our uninsured deposit base, as approximately $1.9 billion in deposits were added to a reciprocal deposit insurance funding network during the second quarter, contributing to a reduction in our uninsured/uncollateralized deposit base from approximately 33.2 percent at the end of the first quarter of 2023 to approximately 28.3 percent at the end of the second quarter of 2023.
"Our investment securities portfolio, including both the held-to-maturity and available-for-sale portfolios, continues to perform well for us though the value of these securities decreased by approximately $255.4 million in the second quarter from the first quarter, largely as a result of our decision to sell approximately $174.0 million in securities in the second quarter of 2023. Our tangible book value per share also increased to $48.85 at June 30, 2023 from $46.75 at March 31, 2023.
"Lastly, credit metrics have been largely consistent for an extended period of time, and we expect those metrics to remain consistent for the remainder of this year. We did record an increased provision this quarter in comparison to last quarter and, thus, increased the ratio of our allowance for credit losses to total loans to 1.08 percent."
BOARD OF DIRECTORS DECLARES DIVIDENDS
On July 18, 2023, Pinnacle Financial's Board of Directors approved a quarterly cash dividend of $0.22 per common share to be paid on Aug. 25, 2023 to common shareholders of record as of the close of business on Aug. 4, 2023. Additionally, the Board of Directors approved a quarterly cash dividend of approximately $3.8 million, or $16.88 per share (or $0.422 per depositary share), on Pinnacle Financial's 6.75 percent Series B Non-Cumulative Perpetual Preferred Stock payable on Sept. 1, 2023 to shareholders of record at the close of business on Aug. 17, 2023. The amount and timing of any future dividend payments to both preferred and common shareholders will be subject to the approval of Pinnacle's Board of Directors.
WEBCAST AND CONFERENCE CALL INFORMATION
Pinnacle will host a webcast and conference call at 8:30 a.m. CDT on July 19, 2023, to discuss second quarter 2023 results and other matters. To access the call for audio only, please call 1-877-209-7255. 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 is the No. 1 bank in the Nashville-Murfreesboro-Franklin MSA according to 2022 deposit data from the FDIC, is listed by Forbes among the top 25 banks in the nation and earned a spot on the 2022 list of 100 Best Companies to Work For® in the U.S., its sixth consecutive appearance. Pinnacle was also listed in Fortune magazine as the second best company to work for in the U.S. for women. American Banker recognized Pinnacle as one of America’s Best Banks to Work For nine years in a row and No. 1 among banks with more than $11 billion in assets in 2021.
Pinnacle owns a 49 percent interest in Bankers Healthcare Group (BHG), which provides innovative, hassle-free financial solutions to healthcare practitioners and other professionals. Great Place to Work and FORTUNE ranked BHG No. 4 on its 2021 list of Best Workplaces in New York State in the small/medium business category.
The firm began operations in a single location in downtown Nashville, TN in October 2000 and has since grown to approximately $46.9 billion in assets as of June 30, 2023. As the second-largest bank holding company headquartered in Tennessee, Pinnacle operates in 17 primarily urban markets and their surrounding communities.
Additional information concerning Pinnacle, which is included in the Nasdaq Financial-100 Index, can be accessed at www.pnfp.com.
Forward-Looking Statements
All statements, other than statements of historical fact, included in this press release, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "expect," "anticipate," "intend," "may," "should," "plan," "believe," "seek," "estimate" and similar expressions are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, including, but not limited to: (i) deterioration in the financial condition of borrowers of Pinnacle Bank and its subsidiaries or BHG, including as a result of the negative impact of inflationary pressures on our and BHG's customers and their businesses, resulting in significant increases in loan losses and provisions for those losses and, in the case of BHG, substitutions; (ii) fluctuations or differences in interest rates on loans or deposits from those that Pinnacle Financial is modeling or anticipating, including as a result of Pinnacle Bank's inability to better match deposit rates with the changes in the short-term rate environment, or that affect the yield curve; (iii) the sale of investment securities in a loss position before their value recovers, including as a result of asset liability management strategies or in response to liquidity needs; (iv) adverse conditions in the national or local economies including in Pinnacle Financial's markets throughout Tennessee, North Carolina, South Carolina, Georgia, Alabama, Virginia and Kentucky, particularly in commercial and residential real estate markets; (v) the inability of Pinnacle Financial, or entities in which it has significant investments, like BHG, to maintain the long-term historical growth rate of its, or such entities', loan portfolio; (vi) the ability to grow and retain low-cost core deposits and retain large, uninsured deposits, including during times when Pinnacle Bank is seeking to limit the rates it pays on deposits or uncertainty exists in the financial services sector; (vii) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (viii) effectiveness of Pinnacle Financial's asset management activities in improving, resolving or liquidating lower-quality assets; (ix) the impact of competition with other financial institutions, including pricing pressures and the resulting impact on Pinnacle Financial’s results, including as a result of the negative impact to net interest margin from rising deposit and other funding costs; (x) the results of regulatory examinations; (xi) Pinnacle Financial's ability to identify potential candidates for, consummate, and achieve synergies from, potential future acquisitions; (xii) difficulties and delays in integrating acquired businesses or fully realizing costs savings and other benefits from acquisitions; (xiii) BHG's ability to profitably grow its business and successfully execute on its business plans; (xiv) risks of expansion into new geographic or product markets; (xv) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including goodwill or other intangible assets; (xvi) the ineffectiveness of Pinnacle Bank's hedging strategies, or the unexpected counterparty failure or hedge failure of the underlying hedges; (xvii) reduced ability to attract additional financial advisors (or failure of such advisors to cause their clients to switch to Pinnacle Bank), to retain financial advisors (including as a result of the competitive environment for associates) or otherwise to attract customers from other financial institutions; (xviii) deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xix) inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies, required capital maintenance levels or regulatory requests or directives, particularly if Pinnacle Bank's level of applicable commercial real estate loans were to exceed percentage levels of total capital in guidelines recommended by its regulators; (xx) approval of the declaration of any dividend by Pinnacle Financial's board of directors; (xxi) the vulnerability of Pinnacle Bank's network and online banking portals, and the systems of parties with whom Pinnacle Bank contracts, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; (xxii) the possibility of increased compliance and operational costs as a result of increased regulatory oversight (including by the Consumer Financial Protection Bureau), including oversight of companies in which Pinnacle Financial or Pinnacle Bank have significant investments, like BHG, and the development of additional banking products for Pinnacle Bank's corporate and consumer clients; (xxiii) the risks associated with Pinnacle Bank being a minority investor in BHG, including the risk that the owners of a majority of the equity interests in BHG decide to sell the company or all or a portion of their ownership interests in BHG (triggering a similar sale by Pinnacle Bank); (xxiv) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, like BHG, including regulatory or legislative developments; (xxv) fluctuations in the valuations of Pinnacle Financial's equity investments and the ultimate success of such investments; (xxvi) the availability of and access to capital; (xxvii) adverse results (including costs, fines, reputational harm, inability to obtain necessary approvals and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions; and (xxviii) general competitive, economic, political and market conditions. Additional factors which could affect the forward looking statements can be found in Pinnacle Financial's Annual Report on Form 10-K for the year ended December 31, 2022, and subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC and available on the SEC's website at http://www.sec.gov. Pinnacle Financial disclaims any obligation to update or revise any forward-looking statements contained in this press release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Matters
This release contains certain non-GAAP financial measures, including, without limitation, total revenues, net income to common shareholders, earnings per diluted common share, revenue per diluted common share, PPNR, efficiency ratio, noninterest expense, noninterest income and the ratio of noninterest expense to average assets, excluding in certain instances the impact of expenses related to other real estate owned, gains or losses on sale of investment securities, gains associated with the sale-leaseback transaction completed in the second quarter of 2023 and other matters for the accounting periods presented. This release also includes non-GAAP financial measures which exclude the impact of loans originated and forgiven and repaid under the PPP. This release may also contain certain other non-GAAP capital ratios and performance measures that exclude the impact of goodwill and core deposit intangibles associated with Pinnacle Financial's acquisitions of BNC, Avenue Bank, Magna Bank, CapitalMark Bank & Trust, Mid-America Bancshares, Inc., Cavalry Bancorp, Inc. and other acquisitions which collectively are less material to the non-GAAP measure as well as the impact of Pinnacle Financial's Series B Preferred Stock. The presentation of the non-GAAP financial information is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. Because non-GAAP financial measures presented in this release are not measurements determined in accordance with GAAP and are susceptible to varying calculations, these non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures presented by other companies.
Pinnacle Financial believes that these non-GAAP financial measures facilitate making period-to-period comparisons and are meaningful indications of its operating performance. In addition, because intangible assets such as goodwill and the core deposit intangible, and the other items excluded each vary extensively from company to company, Pinnacle Financial believes that the presentation of this information allows investors to more easily compare Pinnacle Financial's results to the results of other companies. Pinnacle Financial's management utilizes this non-GAAP financial information to compare Pinnacle Financial's operating performance for 2023 versus certain periods in 2022 and to internally prepared projections.
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS – UNAUDITED
(dollars in thousands, except for share and per share data)
June 30, 2023
December 31, 2022
June 30, 2022
ASSETS
Cash and noninterest-bearing due from banks
$
447,216
$
268,649
$
265,507
Restricted cash
22,567
31,447
29,739
Interest-bearing due from banks
3,363,348
877,286
1,336,667
Cash and cash equivalents
3,833,131
1,177,382
1,631,913
Securities purchased with agreement to resell
507,235
513,276
1,328,876
Securities available-for-sale, at fair value
3,591,280
3,558,870
3,809,338
Securities held-to-maturity (fair value of $2.7 billion, $2.7 billion, and $2.5 billion, net of allowance for credit losses of $1.7 million, $1.6 million, and $1.2 million at June 30, 2023, Dec. 31, 2022, and June 30, 2022, respectively)
3,032,177
3,079,050
2,744,555
Consumer loans held-for-sale
85,981
42,237
67,467
Commercial loans held-for-sale
22,713
21,093
25,901
Loans
31,153,290
29,041,605
26,333,096
Less allowance for credit losses
(337,459
)
(300,665
)
(272,483
)
Loans, net
30,815,831
28,740,940
26,060,613
Premises and equipment, net
244,853
327,885
302,389
Equity method investment
461,596
443,185
403,191
Accrued interest receivable
164,854
161,182
116,038
Goodwill
1,846,973
1,846,973
1,846,466
Core deposits and other intangible assets
30,981
34,555
37,617
Other real estate owned
2,555
7,952
8,237
Other assets
2,235,822
2,015,441
1,738,691
Total assets
$
46,875,982
$
41,970,021
$
40,121,292
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing
$
8,436,799
$
9,812,744
$
11,058,198
Interest-bearing
10,433,361
7,884,605
6,617,324
Savings and money market accounts
13,645,849
13,774,534
12,492,329
Time
5,206,652
3,489,355
2,427,452
Total deposits
37,722,661
34,961,238
32,595,303
Securities sold under agreements to repurchase
163,774
194,910
199,585
Federal Home Loan Bank advances
2,200,917
464,436
1,289,059
Subordinated debt and other borrowings
424,497
424,055
423,614
Accrued interest payable
53,854
19,478
13,551
Other liabilities
466,520
386,512
284,941
Total liabilities
41,032,223
36,450,629
34,806,053
Preferred stock, no par value, 10.0 million shares authorized; 225,000 shares non-cumulative perpetual preferred stock, Series B, liquidation preference $225.0 million, issued and outstanding at June 30, 2023, Dec. 31, 2022, and June 30, 2022, respectively
217,126
217,126
217,126
Common stock, par value $1.00; 180.0 million shares authorized; 76.7 million, 76.5 million and 76.4 million shares issued and outstanding at June 30, 2023, Dec. 31, 2022, and June 30, 2022, respectively
76,740
76,454
76,385
Additional paid-in capital
3,087,967
3,074,867
3,056,228
Retained earnings
2,634,315
2,341,706
2,096,950
Accumulated other comprehensive loss, net of taxes
(172,389
)
(190,761
)
(131,450
)
Total shareholders' equity
5,843,759
5,519,392
5,315,239
Total liabilities and shareholders' equity
$
46,875,982
$
41,970,021
$
40,121,292
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
(dollars in thousands, except for share and per share data)
Three months ended
Six months ended
June 30, 2023
March 31, 2023
June 30, 2022
June 30, 2023
June 30, 2022
Interest income:
Loans, including fees
$
478,896
$
431,902
$
252,182
$
910,798
$
479,229
Securities
Taxable
31,967
29,358
12,725
61,325
23,773
Tax-exempt
24,603
23,802
19,898
48,405
37,344
Federal funds sold and other
39,773
20,977
7,571
60,750
10,647
Total interest income
575,239
506,039
292,376
1,081,278
550,993
Interest expense:
Deposits
228,668
176,589
18,181
405,257
28,431
Securities sold under agreements to repurchase
783
595
82
1,378
138
FHLB advances and other borrowings
30,395
16,624
9,539
47,019
18,375
Total interest expense
259,846
193,808
27,802
453,654
46,944
Net interest income
315,393
312,231
264,574
627,624
504,049
Provision for credit losses
31,689
18,767
12,907
50,456
15,627
Net interest income after provision for credit losses
283,704
293,464
251,667
577,168
488,422
Noninterest income:
Service charges on deposit accounts
12,180
11,718
11,616
23,898
22,646
Investment services
14,174
11,595
13,205
25,769
23,896
Insurance sales commissions
3,252
4,464
2,554
7,716
6,590
Gains on mortgage loans sold, net
1,567
2,053
2,150
3,620
6,216
Investment losses on sales, net
(9,961
)
—
—
(9,961
)
(61
)
Trust fees
6,627
6,429
6,065
13,056
12,038
Income from equity method investment
26,924
19,079
49,465
46,003
83,120
Gain on sale of fixed assets
85,724
135
65
85,859
198
Other noninterest income
33,352
34,056
40,382
67,408
74,355
Total noninterest income
173,839
89,529
125,502
263,368
228,998
Noninterest expense:
Salaries and employee benefits
132,443
135,708
126,611
268,151
248,463
Equipment and occupancy
33,706
30,353
26,921
64,059
52,457
Other real estate, net
58
99
86
157
191
Marketing and other business development
5,664
5,942
4,759
11,606
8,536
Postage and supplies
2,863
2,819
2,320
5,682
4,691
Amortization of intangibles
1,780
1,794
2,051
3,574
3,922
Other noninterest expense
35,127
35,012
33,290
70,139
60,439
Total noninterest expense
211,641
211,727
196,038
423,368
378,699
Income before income taxes
245,902
171,266
181,131
417,168
338,721
Income tax expense
48,603
33,995
36,004
82,598
64,484
Net income
197,299
137,271
145,127
334,570
274,237
Preferred stock dividends
(3,798
)
(3,798
)
(3,798
)
(7,596
)
(7,596
)
Net income available to common shareholders
$
193,501
$
133,473
$
141,329
$
326,974
$
266,641
Per share information:
Basic net income per common share
$
2.55
$
1.76
$
1.87
$
4.30
$
3.52
Diluted net income per common share
$
2.54
$
1.76
$
1.86
$
4.30
$
3.51
Weighted average common shares outstanding:
Basic
76,030,081
75,921,282
75,751,296
75,975,982
75,703,407
Diluted
76,090,321
76,042,328
75,940,500
76,061,883
75,934,025
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 SHAREHOLDERS' EQUITY
(Unaudited)
(dollars and shares in thousands)
Preferred Stock Amount
Common Stock
Additional Paid -in Capital
Retained Earnings
Accumulated Other Comp. Income (Loss), net
Total Shareholders' Equity
Shares
Amounts
Balance at December 31, 2021
$
217,126
76,143
$
76,143
$
3,045,802
$
1,864,350
$
107,186
$
5,310,607
Exercise of employee common stock options & related tax benefits
—
14
14
309
—
—
323
Preferred dividends paid ($33.76 per share)
—
—
—
—
(7,596
)
—
(7,596
)
Common dividends paid ($0.44 per share)
—
—
—
—
(34,041
)
(34,041
)
Issuance of restricted common shares, net of forfeitures
—
166
166
(166
)
—
—
—
Restricted shares withheld for taxes & related tax benefits
—
(43
)
(43
)
(4,359
)
—
—
(4,402
)
Issuance of common stock pursuant to restricted stock unit (RSU) and performance stock unit (PSU) agreements, net of shares withheld for taxes & related tax benefits
—
105
105
(5,566
)
—
—
(5,461
)
Compensation expense for restricted shares & performance stock units
—
—
—
20,208
—
—
20,208
Net income
—
—
—
—
274,237
—
274,237
Other comprehensive loss
—
—
—
—
—
(238,636
)
(238,636
)
Balance at June 30, 2022
$
217,126
76,385
$
76,385
$
3,056,228
$
2,096,950
$
(131,450
)
$
5,315,239
Balance at December 31, 2022
$
217,126
76,454
$
76,454
$
3,074,867
$
2,341,706
$
(190,761
)
$
5,519,392
Exercise of employee common stock options & related tax benefits
—
40
40
931
—
—
971
Preferred dividends paid ($33.76 per share)
—
—
—
—
(7,596
)
—
(7,596
)
Common dividends paid ($0.44 per share)
—
—
—
—
(34,365
)
—
(34,365
)
Issuance of restricted common shares, net of forfeitures
—
200
200
(200
)
—
—
—
Restricted shares withheld for taxes & related tax benefits
—
(47
)
(47
)
(3,345
)
—
—
(3,392
)
Issuance of common stock pursuant to RSU and PSU agreements, net of shares withheld for taxes & related tax benefits
—
93
93
(3,738
)
—
—
(3,645
)
Compensation expense for restricted shares & performance stock units
—
—
—
19,452
—
—
19,452
Net income
—
—
—
—
334,570
—
334,570
Other comprehensive gain
—
—
—
—
—
18,372
18,372
Balance at June 30, 2023
$
217,126
76,740
$
76,740
$
3,087,967
$
2,634,315
$
(172,389
)
$
5,843,759
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
(dollars in thousands)
June
March
December
September
June
March
2023
2023
2022
2022
2022
2022
Balance sheet data, at quarter end:
Commercial and industrial loans
$
10,979,261
10,716,945
10,233,395
9,738,271
9,244,708
8,213,204
Commercial real estate - owner occupied loans
3,845,359
3,686,796
3,587,257
3,426,271
3,243,018
3,124,275
Commercial real estate - investment loans
5,682,652
5,556,484
5,277,454
5,122,127
4,909,598
4,707,761
Commercial real estate - multifamily and other loans
1,488,236
1,331,249
1,265,165
1,042,854
951,998
718,822
Consumer real estate - mortgage loans
4,692,673
4,531,285
4,435,046
4,271,913
4,047,051
3,813,252
Construction and land development loans
3,904,774
3,909,024
3,679,498
3,548,970
3,386,866
3,277,029
Consumer and other loans
555,685
559,706
555,823
550,565
498,757
487,499
Paycheck protection program loans
4,650
6,382
7,967
10,723
51,100
157,180
Total loans
31,153,290
30,297,871
29,041,605
27,711,694
26,333,096
24,499,022
Allowance for credit losses
(337,459
)
(313,841
)
(300,665
)
(288,088
)
(272,483
)
(261,618
)
Securities
6,623,457
6,878,831
6,637,920
6,481,018
6,553,893
6,136,109
Total assets
46,875,982
45,119,587
41,970,021
41,000,118
40,121,292
39,400,378
Noninterest-bearing deposits
8,436,799
9,018,439
9,812,744
10,567,873
11,058,198
10,986,194
Total deposits
37,722,661
36,178,553
34,961,238
33,690,049
32,595,303
32,295,814
Securities sold under agreements to repurchase
163,774
149,777
194,910
190,554
199,585
219,530
FHLB advances
2,200,917
2,166,508
464,436
889,248
1,289,059
888,870
Subordinated debt and other borrowings
424,497
424,276
424,055
423,834
423,614
423,319
Total shareholders' equity
5,843,759
5,684,128
5,519,392
5,342,112
5,315,239
5,280,950
Balance sheet data, quarterly averages:
Total loans
$
30,882,205
29,633,640
28,402,197
27,021,031
25,397,389
23,848,533
Securities
6,722,247
6,765,126
6,537,262
6,542,026
6,446,774
6,143,664
Federal funds sold and other
3,350,705
2,100,757
1,828,588
2,600,978
2,837,679
4,799,946
Total earning assets
40,955,157
38,499,523
36,768,047
36,164,035
34,681,842
34,792,143
Total assets
45,411,961
42,983,854
41,324,251
40,464,649
38,780,786
38,637,221
Noninterest-bearing deposits
8,599,781
9,332,317
10,486,233
10,926,069
10,803,439
10,478,403
Total deposits
36,355,859
35,291,775
34,177,281
33,108,415
31,484,100
31,538,985
Securities sold under agreements to repurchase
162,429
219,082
199,610
215,646
216,846
179,869
FHLB advances
2,352,045
1,130,356
701,813
1,010,865
1,095,531
888,746
Subordinated debt and other borrowings
426,712
426,564
427,503
426,267
427,191
441,755
Total shareholders' equity
5,782,239
5,605,604
5,433,274
5,403,244
5,316,219
5,331,405
Statement of operations data, for the three months ended:
Interest income
$
575,239
506,039
451,178
371,764
292,376
258,617
Interest expense
259,846
193,808
131,718
65,980
27,802
19,142
Net interest income
315,393
312,231
319,460
305,784
264,574
239,475
Provision for credit losses
31,689
18,767
24,805
27,493
12,907
2,720
Net interest income after provision for credit losses
283,704
293,464
294,655
278,291
251,667
236,755
Noninterest income
173,839
89,529
82,321
104,805
125,502
103,496
Noninterest expense
211,641
211,727
202,047
199,253
196,038
182,661
Income before income taxes
245,902
171,266
174,929
183,843
181,131
157,590
Income tax expense
48,603
33,995
37,082
35,185
36,004
28,480
Net income
197,299
137,271
137,847
148,658
145,127
129,110
Preferred stock dividends
(3,798
)
(3,798
)
(3,798
)
(3,798
)
(3,798
)
(3,798
)
Net income available to common shareholders
$
193,501
133,473
134,049
144,860
141,329
125,312
Profitability and other ratios:
Return on avg. assets (1)
1.71
%
1.26
%
1.29
%
1.42
%
1.46
%
1.32
%
Return on avg. equity (1)
13.42
%
9.66
%
9.79
%
10.64
%
10.66
%
9.53
%
Return on avg. common equity (1)
13.95
%
10.05
%
10.20
%
11.08
%
11.12
%
9.94
%
Return on avg. tangible common equity (1)
21.06
%
15.43
%
15.95
%
17.40
%
17.62
%
15.63
%
Common stock dividend payout ratio (14)
11.04
%
12.07
%
12.26
%
12.34
%
12.63
%
12.94
%
Net interest margin (2)
3.20
%
3.40
%
3.60
%
3.47
%
3.17
%
2.89
%
Noninterest income to total revenue (3)
35.53
%
22.28
%
20.49
%
25.53
%
32.17
%
30.18
%
Noninterest income to avg. assets (1)
1.54
%
0.84
%
0.79
%
1.03
%
1.30
%
1.09
%
Noninterest exp. to avg. assets (1)
1.87
%
2.00
%
1.94
%
1.95
%
2.03
%
1.92
%
Efficiency ratio (4)
43.26
%
52.70
%
50.29
%
48.53
%
50.26
%
53.26
%
Avg. loans to avg. deposits
84.94
%
83.97
%
83.10
%
81.61
%
80.67
%
75.62
%
Securities to total assets
14.13
%
15.25
%
15.82
%
15.81
%
16.34
%
15.57
%
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
June 30, 2023
June 30, 2022
Average Balances
Interest
Rates/ Yields
Average Balances
Interest
Rates/ Yields
Interest-earning assets
Loans (1) (2)
$
30,882,205
$
478,896
6.30
%
$
25,397,389
$
252,182
4.07
%
Securities
Taxable
3,394,507
31,967
3.78
%
3,420,950
12,725
1.49
%
Tax-exempt (2)
3,327,740
24,603
3.54
%
3,025,824
19,898
3.19
%
Interest-bearing due from banks
2,597,020
33,234
5.13
%
1,332,463
2,611
0.79
%
Resell agreements
509,694
3,374
2.65
%
1,326,790
3,844
1.16
%
Federal funds sold
—
—
—
%
—
—
—
%
Other
243,991
3,165
5.20
%
178,426
1,116
2.51
%
Total interest-earning assets
40,955,157
$
575,239
5.74
%
34,681,842
$
292,376
3.49
%
Nonearning assets
Intangible assets
1,879,108
1,882,546
Other nonearning assets
2,577,696
2,216,398
Total assets
$
45,411,961
$
38,780,786
Interest-bearing liabilities
Interest-bearing deposits:
Interest checking
9,361,316
75,815
3.25
%
6,520,804
6,134
0.38
%
Savings and money market
13,684,536
110,024
3.22
%
12,084,911
9,071
0.30
%
Time
4,710,226
42,829
3.65
%
2,074,946
2,976
0.58
%
Total interest-bearing deposits
27,756,078
228,668
3.30
%
20,680,661
18,181
0.35
%
Securities sold under agreements to repurchase
162,429
783
1.93
%
216,846
82
0.15
%
Federal Home Loan Bank advances
2,352,045
24,603
4.20
%
1,095,531
5,231
1.92
%
Subordinated debt and other borrowings
426,712
5,792
5.44
%
427,191
4,308
4.04
%
Total interest-bearing liabilities
30,697,264
259,846
3.40
%
22,420,229
27,802
0.50
%
Noninterest-bearing deposits
8,599,781
—
—
10,803,439
—
—
Total deposits and interest-bearing liabilities
39,297,045
$
259,846
2.65
%
33,223,668
$
27,802
0.34
%
Other liabilities
332,677
240,899
Shareholders' equity
5,782,239
5,316,219
Total liabilities and shareholders' equity
$
45,411,961
$
38,780,786
Net interest income
$
315,393
$
264,574
Net interest spread (3)
2.35
%
2.99
%
Net interest margin (4)
3.20
%
3.17
%
(1) Average balances of nonperforming loans are included in the above amounts.
(2) Yields computed on tax-exempt instruments on a tax equivalent basis and included $11.2 million of taxable equivalent income for the three months ended June 30, 2023 compared to $9.6 million for the three months ended June 30, 2022. The tax-exempt benefit has been reduced by the projected impact of tax-exempt income that will be disallowed pursuant to IRS Regulations as of and for the then current period presented.
(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 three months ended June 30, 2023 would have been 3.09% compared to a net interest spread of 3.16% for the three months ended June 30, 2022.
(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)
Six months ended
Six months ended
June 30, 2023
June 30, 2022
Average Balances
Interest
Rates/ Yields
Average Balances
Interest
Rates/ Yields
Interest-earning assets
Loans (1) (2)
$
30,261,372
$
910,798
6.15
%
$
24,627,240
$
479,229
4.01
%
Securities
Taxable
3,451,410
61,325
3.58
%
3,381,538
23,773
1.42
%
Tax-exempt (2)
3,292,158
48,405
3.54
%
2,914,519
37,344
3.12
%
Interest-bearing due from banks
1,998,083
49,166
4.96
%
2,334,566
3,914
0.34
%
Resell agreements
511,169
6,703
2.64
%
1,304,392
5,058
0.78
%
Federal funds sold
—
—
—
%
—
—
—
%
Other
219,932
4,881
4.48
%
174,434
1,675
1.94
%
Total interest-earning assets
39,734,124
$
1,081,278
5.60
%
34,736,689
$
550,993
3.30
%
Nonearning assets
Intangible assets
1,879,994
1,873,190
Other nonearning assets
2,590,548
2,099,522
Total assets
$
44,204,666
$
38,709,401
Interest-bearing liabilities
Interest-bearing deposits:
Interest checking
8,581,899
128,289
3.01
%
6,456,418
8,733
0.27
%
Savings and money market
14,029,351
207,543
2.98
%
12,334,678
14,195
0.23
%
Time
4,251,481
69,425
3.29
%
2,078,477
5,503
0.53
%
Total interest-bearing deposits
26,862,731
405,257
3.04
%
20,869,573
28,431
0.27
%
Securities sold under agreements to repurchase
190,599
1,378
1.46
%
198,459
138
0.14
%
Federal Home Loan Bank advances
1,744,575
35,574
4.11
%
992,710
9,705
1.97
%
Subordinated debt and other borrowings
426,638
11,445
5.41
%
434,433
8,670
4.02
%
Total interest-bearing liabilities
29,224,543
453,654
3.13
%
22,495,175
46,944
0.42
%
Noninterest-bearing deposits
8,964,026
—
—
10,641,819
—
—
Total deposits and interest-bearing liabilities
38,188,569
$
453,654
2.40
%
33,136,994
$
46,944
0.29
%
Other liabilities
321,637
248,637
Shareholders' equity
5,694,460
5,323,770
Total liabilities and shareholders' equity
$
44,204,666
$
38,709,401
Net interest income
$
627,624
$
504,049
Net interest spread (3)
2.47
%
2.88
%
Net interest margin (4)
3.30
%
3.03
%
(1) Average balances of nonperforming loans are included in the above amounts.
(2) Yields computed on tax-exempt instruments on a tax equivalent basis and included $22.1 million of taxable equivalent income for the six months ended June 30, 2023 compared to $18.1 million for the six months ended June 30, 2022. The tax-exempt benefit has been reduced by the projected impact of tax-exempt income that will be disallowed pursuant to IRS Regulations as of and for the then current period presented.
(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, 2023 would have been 3.20% compared to a net interest spread of 3.02% for the six months ended June 30, 2022.
(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)
June
March
December
September
June
March
2023
2023
2022
2022
2022
2022
Asset quality information and ratios:
Nonperforming assets:
Nonaccrual loans
$
44,289
36,988
38,116
34,115
15,459
26,616
ORE and other nonperforming assets (NPAs)
3,105
7,802
7,952
7,787
8,237
8,437
Total nonperforming assets
$
47,394
44,790
46,068
41,902
23,696
35,053
Past due loans over 90 days and still accruing interest
$
5,257
5,284
4,406
6,757
3,840
1,605
Accruing purchase credit deteriorated loans
$
7,415
7,684
8,060
8,759
9,194
12,661
Net loan charge-offs
$
9,771
7,291
11,729
10,983
877
2,958
Allowance for credit losses to nonaccrual loans
762.0
%
848.5
%
788.8
%
844.5
%
1,762.6
%
982.9
%
As a percentage of total loans:
Past due accruing loans over 30 days
0.14
%
0.14
%
0.15
%
0.13
%
0.11
%
0.11
%
Potential problem loans
0.32
%
0.22
%
0.19
%
0.21
%
0.32
%
0.41
%
Allowance for credit losses
1.08
%
1.04
%
1.04
%
1.04
%
1.03
%
1.07
%
Nonperforming assets to total loans, ORE and other NPAs
0.15
%
0.15
%
0.16
%
0.15
%
0.09
%
0.14
%
Classified asset ratio (Pinnacle Bank) (6)
3.3
%
2.7
%
2.4
%
2.6
%
2.9
%
3.6
%
Annualized net loan charge-offs to avg. loans (5)
0.13
%
0.10
%
0.17
%
0.16
%
0.01
%
0.05
%
Interest rates and yields:
Loans
6.30
%
6.00
%
5.54
%
4.73
%
4.07
%
3.94
%
Securities
3.66
%
3.47
%
3.19
%
2.66
%
2.29
%
2.12
%
Total earning assets
5.74
%
5.45
%
5.02
%
4.20
%
3.49
%
3.11
%
Total deposits, including non-interest bearing
2.52
%
2.03
%
1.40
%
0.66
%
0.23
%
0.13
%
Securities sold under agreements to repurchase
1.93
%
1.10
%
0.94
%
0.34
%
0.15
%
0.13
%
FHLB advances
4.20
%
3.94
%
3.04
%
2.26
%
1.92
%
2.04
%
Subordinated debt and other borrowings
5.44
%
5.38
%
4.98
%
4.51
%
4.04
%
4.00
%
Total deposits and interest-bearing liabilities
2.65
%
2.12
%
1.47
%
0.75
%
0.34
%
0.23
%
Capital and other ratios (6):
Pinnacle Financial ratios:
Shareholders' equity to total assets
12.5
%
12.6
%
13.2
%
13.0
%
13.2
%
13.4
%
Common equity Tier one
10.2
%
9.9
%
10.0
%
10.0
%
10.2
%
10.5
%
Tier one risk-based
10.8
%
10.5
%
10.5
%
10.7
%
10.9
%
11.2
%
Total risk-based
12.7
%
12.4
%
12.4
%
12.6
%
12.9
%
13.3
%
Leverage
9.5
%
9.6
%
9.7
%
9.7
%
9.8
%
9.5
%
Tangible common equity to tangible assets
8.3
%
8.3
%
8.5
%
8.3
%
8.4
%
8.5
%
Pinnacle Bank ratios:
Common equity Tier one
11.1
%
10.8
%
10.9
%
11.1
%
11.0
%
11.4
%
Tier one risk-based
11.1
%
10.8
%
10.9
%
11.1
%
11.0
%
11.4
%
Total risk-based
11.9
%
11.6
%
11.6
%
11.8
%
11.7
%
12.1
%
Leverage
9.8
%
9.9
%
10.1
%
10.1
%
9.9
%
9.6
%
Construction and land development loans as a percentage of total capital (17)
84.5
%
88.5
%
85.9
%
85.4
%
87.4
%
87.4
%
Non-owner occupied commercial real estate and multi-family as a percentage of total capital (17)
256.7
%
261.1
%
249.6
%
244.0
%
250.2
%
243.7
%
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)
June
March
December
September
June
March
2023
2023
2022
2022
2022
2022
Per share data:
Earnings per common share – basic
$
2.55
1.76
1.77
1.91
1.87
1.66
Earnings per common share - basic, excluding non-GAAP adjustments
$
1.80
1.76
1.77
1.91
1.87
1.66
Earnings per common share – diluted
$
2.54
1.76
1.76
1.91
1.86
1.65
Earnings per common share - diluted, excluding non-GAAP adjustments
$
1.79
1.76
1.76
1.91
1.86
1.65
Common dividends per share
$
0.22
0.22
0.22
0.22
0.22
0.22
Book value per common share at quarter end (7)
$
73.32
71.24
69.35
67.07
66.74
66.30
Tangible book value per common share at quarter end (7)
$
48.85
46.75
44.74
42.44
42.08
41.65
Revenue per diluted common share
$
6.43
5.28
5.27
5.40
5.14
4.52
Revenue per diluted common share, excluding non-GAAP adjustments
$
5.43
5.28
5.27
5.40
5.14
4.52
Investor information:
Closing sales price of common stock on last trading day of quarter
$
56.65
55.16
73.40
81.10
72.31
92.08
High closing sales price of common stock during quarter
$
57.93
82.79
87.81
87.66
91.42
110.41
Low closing sales price of common stock during quarter
$
46.17
52.51
70.74
68.68
68.56
90.46
Closing sales price of depositary shares on last trading day of quarter
$
23.75
24.15
25.35
25.33
25.19
26.72
High closing sales price of depositary shares during quarter
$
24.90
25.71
25.60
26.23
26.44
28.53
Low closing sales price of depositary shares during quarter
$
19.95
20.77
23.11
24.76
24.75
25.63
Other information:
Residential mortgage loan sales:
Gross loans sold
$
192,948
120,146
134,514
181,139
239,736
270,793
Gross fees (8)
$
4,133
2,795
3,149
3,189
6,523
5,700
Gross fees as a percentage of loans originated
2.14
%
2.33
%
2.34
%
1.76
%
2.72
%
2.11
%
Net gain (loss) on residential mortgage loans sold
$
1,567
2,053
(65
)
1,117
2,150
4,066
Investment gains (losses) on sales of securities, net (13)
$
(9,961
)
—
—
217
—
(61
)
Brokerage account assets, at quarter end (9)
$
9,007,230
8,634,339
8,049,125
7,220,405
6,761,480
7,158,939
Trust account managed assets, at quarter end
$
5,084,592
4,855,951
4,560,752
4,162,639
4,207,406
4,499,911
Core deposits (10)
$
32,780,767
32,054,111
31,301,077
30,748,817
30,011,444
30,398,683
Core deposits to total funding (10)
80.9
%
82.4
%
86.8
%
87.4
%
87.0
%
89.9
%
Risk-weighted assets
$
38,853,588
38,117,659
36,216,901
35,281,315
33,366,074
31,170,258
Number of offices
127
126
123
120
119
119
Total core deposits per office
$
258,116
254,398
254,480
256,240
252,197
255,451
Total assets per full-time equivalent employee
$
14,166
13,750
12,948
12,875
13,052
13,186
Annualized revenues per full-time equivalent employee
$
593.0
496.5
491.8
511.5
509.0
465.5
Annualized expenses per full-time equivalent employee
$
256.5
261.7
247.3
248.2
255.8
247.9
Number of employees (full-time equivalent)
3,309.0
3,281.5
3,241.5
3,184.5
3,074.0
2,988.0
Associate retention rate (11)
94.1
%
93.8
%
93.8
%
93.6
%
93.3
%
93.1
%
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
Three months ended
Six months ended
(dollars in thousands, except per share data)
June
March
June
June
June
2023
2023
2022
2023
2022
Net interest income
$
315,393
312,231
264,574
627,624
504,049
Noninterest income
173,839
89,529
125,502
263,368
228,998
Total revenues
489,232
401,760
390,076
890,992
733,047
Less: Investment losses on sales of securities, net
9,961
—
—
9,961
61
Gain on sale of fixed assets as a result of sale-leaseback transaction
(85,692
)
—
—
(85,692
)
—
Total revenues excluding the impact of adjustments noted above
$
413,501
401,760
390,076
815,261
733,108
Noninterest expense
$
211,641
211,727
196,038
423,368
378,699
Less: ORE expense
58
99
86
157
191
Noninterest expense excluding the impact of adjustments noted above
$
211,583
211,628
195,952
423,211
378,508
Pre-tax income
$
245,902
171,266
181,131
417,168
338,721
Provision for credit losses
31,689
18,767
12,907
50,456
15,627
Pre-tax pre-provision net revenue
277,591
190,033
194,038
467,624
354,348
Less: Adjustments noted above
(75,673
)
99
86
(75,574
)
252
Adjusted pre-tax pre-provision net revenue (12)
$
201,918
190,132
194,124
392,050
354,600
Noninterest income
$
173,839
89,529
125,502
263,368
228,998
Less: Adjustments noted above
(75,731
)
—
—
(75,731
)
61
Noninterest income excluding the impact of adjustments noted above
$
98,108
89,529
125,502
187,637
229,059
Efficiency ratio (4)
43.26
%
52.70
%
50.26
%
47.52
%
51.66
%
Adjustments noted above
7.91
%
(0.02
)%
(0.03
)%
4.39
%
(0.03
)%
Efficiency ratio excluding adjustments noted above (4)
51.17
%
52.68
%
50.23
%
51.91
%
51.63
%
Total average assets
$
45,411,961
42,983,854
38,780,786
44,204,666
38,709,401
Noninterest income to average assets (1)
1.54
%
0.84
%
1.30
%
1.20
%
1.19
%
Less: Adjustments noted above
(0.67
)%
—
%
—
%
(0.34
)%
—
%
Noninterest income (excluding adjustments noted above) to average assets (1)
0.87
%
0.84
%
1.30
%
0.86
%
1.19
%
Noninterest expense to average assets (1)
1.87
%
2.00
%
2.03
%
1.93
%
1.97
%
Adjustments as noted above
—
%
—
%
—
%
—
%
—
%
Noninterest expense (excluding adjustments noted above) to average assets (1)
1.87
%
2.00
%
2.03
%
1.93
%
1.97
%
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
Three months ended
(dollars in thousands, except per share data)
June
March
December
September
June
March
2023
2023
2022
2022
2022
2022
Net income available to common shareholders
$
193,501
133,473
134,049
144,860
141,329
125,312
Investment (gains) losses on sales of securities, net
9,961
—
—
(217
)
—
61
Gain on sale of fixed assets as a result of sale-leaseback transaction
(85,692
)
—
—
—
—
—
ORE expense (benefit)
58
99
179
(90
)
86
105
Tax effect on adjustments noted above (16)
18,918
(25
)
(47
)
80
(22
)
(43
)
Net income available to common shareholders excluding adjustments noted above
$
136,746
133,547
134,181
144,633
141,393
125,435
Basic earnings per common share
$
2.55
1.76
1.77
1.91
1.87
1.66
Adjustment due to investment (gains) losses on sales of securities, net
0.13
—
—
—
—
—
Adjustment due to gain on sale of fixed assets as a result of sale-leaseback transaction
(1.13
)
—
—
—
—
—
Adjustment due to ORE expense (benefit)
—
—
—
—
—
—
Adjustment due to tax effect on adjustments noted above (16)
0.25
—
—
—
—
—
Basic earnings per common share excluding adjustments noted above
$
1.80
1.76
1.77
1.91
1.87
1.66
Diluted earnings per common share
$
2.54
1.76
1.76
1.91
1.86
1.65
Adjustment due to investment (gains) losses on sales of securities, net
0.13
—
—
—
—
—
Adjustment due to gain on sale of fixed assets as a result of sale-leaseback transaction
(1.13
)
—
—
—
—
—
Adjustment due to ORE expense (benefit)
—
—
—
—
—
—
Adjustment due to tax effect on adjustments noted above (16)
0.25
—
—
—
—
—
Diluted earnings per common share excluding the adjustments noted above
$
1.79
1.76
1.76
1.91
1.86
1.65
Revenue per diluted common share
$
6.43
5.28
5.27
5.40
5.14
4.52
Adjustments due to revenue-impacting items as noted above
(1.00
)
—
—
—
—
—
Revenue per diluted common share excluding adjustments due to revenue-impacting items as noted above
$
5.43
5.28
5.27
5.40
5.14
4.52
Book value per common share at quarter end (7)
$
73.32
71.24
69.35
67.07
66.74
66.30
Adjustment due to goodwill, core deposit and other intangible assets
(24.47
)
(24.49
)
(24.61
)
(24.63
)
(24.66
)
(24.65
)
Tangible book value per common share at quarter end (7)
$
48.85
46.75
44.74
42.44
42.08
41.65
Equity method investment (15)
Fee income from BHG, net of amortization
$
26,924
19,079
21,005
41,341
49,465
33,655
Funding cost to support investment
5,995
5,093
4,586
3,891
1,998
666
Pre-tax impact of BHG
20,929
13,986
16,419
37,450
47,467
32,989
Income tax expense at statutory rates (16)
5,232
3,497
4,292
9,789
12,408
8,623
Earnings attributable to BHG
$
15,697
10,489
12,127
27,661
35,059
24,366
Basic earnings per common share attributable to BHG
$
0.21
0.14
0.16
0.37
0.46
0.32
Diluted earnings per common share attributable to BHG
$
0.21
0.14
0.16
0.36
0.46
0.32
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
Six months ended
(dollars in thousands, except per share data)
June 30,
2023
2022
Net income available to common shareholders
$
326,974
266,641
Investment losses on sales of securities, net
9,961
61
Gain on sale of fixed assets as a result of sale-leaseback transaction
(85,692
)
—
ORE expense
157
191
Tax effect on adjustments noted above (16)
18,894
(66
)
Net income available to common shareholders excluding adjustments noted above
$
270,294
266,827
Basic earnings per common share
$
4.30
3.52
Adjustment due to investment losses on sales of securities, net
0.13
—
Adjustment due to gain on sale of fixed assets as a result of sale-leaseback transaction
(1.13
)
—
Adjustment due to ORE expense
—
—
Adjustment due to tax effect on adjustments noted above (16)
0.25
—
Basic earnings per common share excluding adjustments noted above
$
3.55
3.52
Diluted earnings per common share
4.30
3.51
Adjustment due to investment losses on sales of securities, net
0.13
—
Adjustment due to gain on sale of fixed assets as a result of sale-leaseback transaction
(1.13
)
—
Adjustment due to ORE expense
—
—
Adjustment due to tax effect on adjustments noted above (16)
0.25
—
Diluted earnings per common share excluding the adjustments noted above
$
3.55
3.51
Revenue per diluted common share
$
11.71
9.65
Adjustments due to revenue-impacting items as noted above
(0.99
)
—
Revenue per diluted common share excluding adjustments due to revenue-impacting items noted above
$
10.72
9.65
Equity method investment (15)
Fee income from BHG, net of amortization
$
46,003
83,120
Funding cost to support investment
11,088
2,664
Pre-tax impact of BHG
34,915
80,456
Income tax expense at statutory rates (16)
8,729
21,031
Earnings attributable to BHG
$
26,186
59,425
Basic earnings per common share attributable to BHG
$
0.34
0.78
Diluted earnings per common share attributable to BHG
$
0.34
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
Three months ended
Six months ended
(dollars in thousands, except per share data)
June
March
June
June
June
2023
2023
2022
2023
2022
Return on average assets (1)
1.71
%
1.26
%
1.46
%
1.49
%
1.39
%
Adjustments as noted above
(0.50
)%
—
%
—
%
(0.26
)%
—
%
Return on average assets excluding adjustments noted above (1)
1.21
%
1.26
%
1.46
%
1.23
%
1.39
%
Tangible assets:
Total assets
$
46,875,982
45,119,587
40,121,292
$
46,875,982
40,121,292
Less: Goodwill
(1,846,973
)
(1,846,973
)
(1,846,466
)
(1,846,973
)
(1,846,466
)
Core deposit and other intangible assets
(30,981
)
(32,761
)
(37,617
)
(30,981
)
(37,617
)
Net tangible assets
$
44,998,028
43,239,853
38,237,209
$
44,998,028
38,237,209
Tangible common equity:
Total shareholders' equity
$
5,843,759
5,684,128
5,315,239
$
5,843,759
5,315,239
Less: Preferred shareholders' equity
(217,126
)
(217,126
)
(217,126
)
(217,126
)
(217,126
)
Total common shareholders' equity
5,626,633
5,467,002
5,098,113
5,626,633
5,098,113
Less: Goodwill
(1,846,973
)
(1,846,973
)
(1,846,466
)
(1,846,973
)
(1,846,466
)
Core deposit and other intangible assets
(30,981
)
(32,761
)
(37,617
)
(30,981
)
(37,617
)
Net tangible common equity
$
3,748,679
3,587,268
3,214,030
$
3,748,679
3,214,030
Ratio of tangible common equity to tangible assets
8.33
%
8.30
%
8.41
%
8.33
%
8.41
%
Average tangible assets:
Average assets
$
45,411,961
42,983,854
38,780,786
$
44,204,666
38,709,401
Less: Average goodwill
(1,846,973
)
(1,846,973
)
(1,851,137
)
(1,846,973
)
(1,840,902
)
Average core deposit and other intangible assets
(32,135
)
(33,917
)
(31,409
)
(33,021
)
(32,288
)
Net average tangible assets
$
43,532,853
41,102,964
36,898,240
$
42,324,672
36,836,211
Return on average assets (1)
1.71
%
1.26
%
1.46
%
1.49
%
1.39
%
Adjustment due to goodwill, core deposit and other intangible assets
0.07
%
0.06
%
0.08
%
0.07
%
0.07
%
Return on average tangible assets (1)
1.78
%
1.32
%
1.54
%
1.56
%
1.46
%
Adjustments as noted above
(0.52
)%
—
%
—
%
(0.27
)%
—
%
Return on average tangible assets excluding adjustments noted above (1)
1.26
%
1.32
%
1.54
%
1.29
%
1.46
%
Average tangible common equity:
Average shareholders' equity
$
5,782,239
5,605,604
5,316,219
$
5,694,460
5,323,770
Less: Average preferred equity
(217,126
)
(217,126
)
(217,126
)
(217,126
)
(217,126
)
Average common equity
5,565,113
5,388,478
5,099,093
5,477,334
5,106,644
Less: Average goodwill
(1,846,973
)
(1,846,973
)
(1,851,137
)
(1,846,973
)
(1,840,902
)
Average core deposit and other intangible assets
(32,135
)
(33,917
)
(31,409
)
(33,021
)
(32,288
)
Net average tangible common equity
$
3,686,005
3,507,588
3,216,547
$
3,597,340
3,233,454
Return on average equity (1)
13.42
%
9.66
%
10.66
%
11.58
%
10.10
%
Adjustment due to average preferred shareholders' equity
0.53
%
0.39
%
0.46
%
0.46
%
0.43
%
Return on average common equity (1)
13.95
%
10.05
%
11.12
%
12.04
%
10.53
%
Adjustment due to goodwill, core deposit and other intangible assets
7.11
%
5.38
%
6.50
%
6.29
%
6.10
%
Return on average tangible common equity (1)
21.06
%
15.43
%
17.62
%
18.33
%
16.63
%
Adjustments as noted above
(6.18
)%
0.01
%
0.01
%
(3.18
)%
0.01
%
Return on average tangible common equity excluding adjustments noted above (1)
14.88
%
15.44
%
17.63
%
15.15
%
16.64
%
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. 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.
6. 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 shareholders' equity as a percentage of end of period assets.
Tangible common equity to tangible assets - End of period total shareholders' equity less end of period preferred stock, goodwill, core deposit and other intangibles as a percentage of end of period assets less end of period goodwill, core deposit and other intangibles.
Leverage – Tier I capital (pursuant to risk-based capital guidelines) as a percentage of adjusted average assets.
Tier I risk-based – Tier I 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 credit losses.
Tier I 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.
7. Book value per common share computed by dividing total common shareholders' equity by common shares outstanding. Tangible book value per common share computed by dividing total common shareholders' equity, less goodwill, core deposit and other intangibles by common shares outstanding.
8. Amounts are included in the statement of operations in "Gains on mortgage loans sold, net", net of commissions paid on such amounts.
9. At fair value, based on information obtained from Pinnacle's third party broker/dealer for non-FDIC insured financial products and services.
10. 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.
11. Associate retention rate is computed by dividing the number of associates employed at quarter end less the number of associates that have resigned in the last 12 months by the number of associates employed at quarter end. Associate retention rate does not include associates at acquired institutions displaced by merger.
12. Adjusted pre-tax, pre-provision net revenue excludes the impact of ORE expenses and income, investment gains and losses on sales of securities and gain on sale of fixed assets as a result of the sale-leaseback transaction.
13. Represents investment gains (losses) on sales and impairments, net occurring as a result of gains or 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.
14. The dividend payout ratio is calculated as the sum of the annualized dividend rate for dividends paid on common shares divided by the trailing 12-months fully diluted earnings per common share as of the dividend declaration date.
15. 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.
16. Tax effect calculated using the blended statutory rate of 25.00 percent for 2023. For periods prior to 2023, tax effect calculated using the blended statutory rate of 26.14 percent.
17. Calculated using the same guidelines as are used in the Federal Financial Institutions Examination Council's Uniform Bank Performance Report.
pnfp-earnings
View source version on businesswire.com: https://www.businesswire.com/news/home/20230718517772/en/
MEDIA CONTACT: Joe Bass, 615-743-8219
FINANCIAL CONTACT: Harold Carpenter, 615-744-3742
WEBSITE: www.pnfp.com
1 Year Pinnacle Financial Partn... Chart |
1 Month Pinnacle Financial Partn... Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions