Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported
net income per diluted common share of $1.19 for the quarter ended
Dec. 31, 2023, compared to net income per diluted common share of
$1.76 for the quarter ended Dec. 31, 2022, a decrease of 32.4
percent. Net income per diluted common share was $7.14 for the year
ended Dec. 31, 2023, compared to $7.17 for the year ended Dec. 31,
2022, a decrease of 0.4 percent.
After considering the adjustments noted in the table below for
the three months ended Dec. 31, 2023 and 2022, net income per
diluted common share was $1.68, compared to $1.76 for the three
months ended Dec. 31, 2022. Net income per diluted common share
adjusted for the items noted in the table below was $6.99 for the
year ended Dec. 31, 2023, compared to $7.17 for the year ended Dec.
31, 2022.
Three Months Ended
Years Ended
December 31,
2023
September 30,
2023
December 31,
2022
December 31,
2023
December 31,
2022
Diluted earnings per common share
$
1.19
$
1.69
$
1.76
$
7.14
$
7.17
Net of tax adjustments (1):
Investment losses on sales of securities,
net (3)
—
0.10
—
0.20
—
Gain on sale of fixed assets as a result
of sale-leaseback transaction
—
—
—
(0.84
)
—
Loss on BOLI restructuring (2)
0.21
—
—
0.21
—
ORE expense (3)
—
—
—
—
—
FDIC special assessment
0.28
—
—
0.28
—
Diluted earnings per common share after
adjustments
$
1.68
$
1.79
$
1.76
$
6.99
$
7.17
(1): Adjustments include tax effect
calculated using a blended statutory rate of 25.00 percent for
2023.
(2): Loss on BOLI restructuring is not tax
effected.
(3): Impact of net investment gains in the
fourth quarter of 2023 and ORE expense in all periods presented
were minimal.
During the fourth quarter of 2023, the firm restructured and
surrendered approximately $740.0 million of bank owned life
insurance contracts (BOLI) held by various insurance carriers. The
restructuring is expected to increase the future yields of the
underlying insurance contracts. Pursuant to the restructuring, the
firm incurred approximately $7.2 million in restructuring charges
and surrender penalties and $9.1 million in income taxes and
penalties. The increased yield is expected to be fully phased in by
mid-year 2024 and should result in an increase in non-taxable
noninterest income of approximately $10.5 million in 2024.
Additionally, the firm accrued approximately $29.0 million for
future payments to the FDIC pursuant to a special insurance
assessment to recover losses incurred by the Deposit Insurance Fund
associated with two bank failures which occurred in the spring of
2023. The firm expects to remit the amount in eight quarterly
installments beginning in June of 2024. The FDIC has announced that
the special assessment amount and payment periods could change if
actual losses to the Deposit Insurance Fund from these failures are
different from estimated losses.
"There is no doubt that 2023 presented a very difficult
operating environment for banks," said M. Terry Turner, Pinnacle's
president and chief executive officer. "But 2023 was actually a
great year for our firm resulting in year-over-year tangible book
value growth of 14.8 percent and a total shareholder return of 20
percent. The challenging environment allowed us to showcase two
critical drivers of our unique ability to create long-term
shareholder value. First, our extraordinary ability to attract
experienced bankers from the larger regional and national
competitors, coupled with a differentiated service model, enabled
us to reliably take market share and grow our balance sheet volumes
even when market conditions would have otherwise limited growth
opportunities. Second, our risk management systems, though
generally unseen by most investors, provide critical discipline
that contributed to very strong growth in a year when many of our
peers failed to grow. These two drivers, in particular, enabled us
to stay on course as opposed to deploying an extensive cost
reduction plan which risks both revenue generation momentum as well
as the cultural foundation of the firm.
"With that in mind, we successfully recruited several
experienced bankers in Jacksonville, Florida during the fourth
quarter of 2023 building on the success we are experiencing in
other market extensions like Atlanta and Washington, D.C. These
bankers will provide the core leadership for what we believe will
be a strong franchise in one of Florida’s finest banking markets.
Due to the relative strength of our southeastern markets and the
competitive advantage we possess over the large regional and
national competitors, I remain excited about the ongoing
opportunities that exist for our firm as we enter 2024."
BALANCE SHEET GROWTH AND LIQUIDITY:
Total assets at Dec. 31, 2023 were $48.0 billion, an increase of
approximately $6.0 billion from Dec. 31, 2022 and $436.1 million
from Sept. 30, 2023, reflecting a year-over-year increase of 14.3
percent and a linked-quarter annualized increase of 3.7 percent. A
further analysis of select balance sheet trends follows:
Balances at
Linked-Quarter
Annualized
% Change
Balances at
Year-over-Year
% Change
(dollars in thousands)
Dec. 31, 2023
Sept. 30, 2023
Dec. 31, 2022
Loans
$
32,676,091
$
31,943,284
9.2%
$
29,041,605
12.5%
Securities
7,323,887
6,882,276
25.7%
6,637,920
10.3%
Other interest-earning assets
2,673,235
3,512,452
(95.6)%
1,485,339
80.0%
Total interest-earning assets
$
42,673,213
$
42,338,012
3.2%
$
37,164,864
14.8%
Core deposits:
Noninterest-bearing deposits
$
7,906,502
$
8,324,325
(20.1)%
$
9,812,744
(19.4)%
Interest-bearing core deposits(1)
25,832,415
25,282,458
8.7%
21,488,333
20.2%
Noncore deposits and other funding(2)
7,573,489
7,420,341
8.3%
4,743,562
59.7%
Total funding
$
41,312,406
$
41,027,124
2.8%
$
36,044,639
14.6%
(1):
Interest-bearing core deposits are
interest-bearing deposits, money market accounts, time deposits
less than $250,000 including reciprocating time and money market
deposits.
(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.
- Approximately 63 percent of fourth quarter 2023 loan growth was
related to commercial and industrial and owner-occupied commercial
real estate categories, two segments the firm intends to continue
emphasizing for the foreseeable future.
- On-balance sheet liquidity, defined as cash and cash
equivalents plus unpledged securities, remained strong, totaling
$6.9 billion as of Dec. 31, 2023, representing a $448 million
decrease from the on-balance sheet liquidity level of $7.4 billion
as of Sept. 30, 2023.
- Available-for-sale investment securities increased by $454
million during the fourth quarter of 2023 which is primarily due to
a $301 million increase in the fair value of the underlying
securities.
"We grew loans 12.5 percent, core deposits 7.8 percent, and we
hired 107 new revenue producers, showcasing our ability to reliably
and responsibly grow during 2023," Turner said. "With no further
decline in the net interest margin in the fourth quarter, it
appears we may be at or near the bottom for net interest margin.
Consequently, the combination of our balance sheet growth and our
ongoing pricing emphasis should enable us to reliably grow net
interest income in 2024."
PRE-TAX, PRE-PROVISION NET REVENUE (PPNR) GROWTH:
Pre-tax, pre-provision net revenues (PPNR) for the three months
and year ended Dec. 31, 2023 were $145.2 million and $807.6
million, respectively, a decrease of 27.3 percent and an increase
of 5.5 percent, respectively from the three months and year ended
Dec. 31, 2022.
Three months ended
Years ended
December 31,
December 31,
(dollars in thousands)
2023
2022
% change
2023
2022
% change
Revenues:
Net interest income
$
317,252
$
319,460
(0.7
)%
$
1,262,118
$
1,129,293
11.8
%
Noninterest income
79,088
82,321
(3.9
)%
433,253
416,124
4.1
%
Total revenues
396,340
401,781
(1.4
)%
1,695,371
1,545,417
9.7
%
Noninterest expense
251,168
202,047
24.3
%
887,769
779,999
13.8
%
Pre-tax, pre-provision net revenue
(PPNR)
145,172
199,734
(27.3
)%
807,602
765,418
5.5
%
Adjustments:
Investment losses (gains) on sales of
securities, net
(14
)
—
NM
19,674
(156
)
NM
Gain on the sale of fixed assets as a
result of sale leaseback
—
—
NM
(85,692
)
—
NM
Loss on BOLI restructuring
7,166
—
NM
7,166
—
NM
ORE expense (benefit)
125
179
(30.2
)%
315
280
12.5
%
FDIC special assessment
29,000
—
NM
29,000
—
NM
Adjusted PPNR
$
181,449
$
199,913
(9.2
)%
$
778,065
$
765,542
1.6
%
- Revenue per fully diluted common share was $5.16 for the fourth
quarter of 2023, compared to $5.35 for the third quarter of 2023
and $5.27 for the fourth quarter of 2022, a decline of 2.1 percent
year-over-year. Excluding investment gains on sales of securities
and the loss on the BOLI restructuring, revenue per fully diluted
share for the fourth quarter of 2023 was $5.25 compared to $5.27
for the fourth quarter of 2022.
- Net interest income for the quarter ended Dec. 31, 2023 was
$317.3 million, compared to $317.2 million for the third quarter of
2023 and $319.5 million for the fourth quarter of 2022, a
year-over-year decline of 0.7 percent.
- Noninterest income for the quarter ended Dec. 31, 2023 was
$79.1 million, compared to $90.8 million for the third quarter of
2023 and $82.3 million for the fourth quarter of 2022, a
year-over-year decrease of 3.9 percent. Noninterest income results
for the fourth quarter of 2023 were negatively impacted by the BOLI
restructuring charges of $7.2 million noted above. Excluding the
BOLI restructuring charges, year-over-year noninterest income would
have increased by 4.8 percent between the fourth quarter of 2023
and the fourth quarter of 2022.
- Wealth management revenues, which include investment, trust and
insurance services, were $23.5 million for the fourth quarter of
2023, compared to $22.8 million for the third quarter of 2023 and
$20.2 million for the fourth quarter of 2022, a year-over-year
increase of 16.2 percent.
- Gain on the sale of fixed assets was $102,000 for the quarter
ended Dec. 31, 2023, compared to $87,000 and $32,000, respectively,
for the quarters ended Sept. 30, 2023 and Dec. 31, 2022. Gain on
the sale of fixed assets was $86.0 million for the year ended Dec.
31, 2023, compared to $457,000 for the year ended Dec. 31, 2022.
The year ended Dec. 31, 2023 included a gain on the sale of fixed
assets as a result of the previously announced sale-leaseback
transaction completed in the second quarter of 2023 of $85.7
million.
- Net gains on the sale of investment securities were $14,000 for
the quarter ended Dec. 31, 2023, compared to $9.7 million in net
losses for the quarter ended Sept. 30, 2023. There were no net
gains or losses on the sale of investment securities for the
quarter ended Dec. 31, 2022.
- Income from the firm's investment in BHG was $14.4 million for
the fourth quarter 2023, compared to $25.0 million for the third
quarter of 2023 and $21.0 million for the fourth quarter of 2022, a
year-over-year decline of 31.3 percent. The firm estimated that
BHG's overall impact to Pinnacle's earnings per diluted common
share for the year ended Dec. 31, 2023 amounted to $0.61, down from
$1.27 for the comparable period in 2022, in each case after
considering reasonable funding costs to support the investment.
BHG's impact on Pinnacle's earnings declined from 17.7 percent of
Pinnacle's 2022 total diluted earnings per common share to 8.5
percent of Pinnacle's 2023 total diluted earnings per common share.
- BHG's loan originations decreased to $786 million in the fourth
quarter 2023 compared to $1.0 billion in the third quarter of 2023
and $1.1 billion in the fourth quarter of 2022.
- Loans sold to BHG's community bank partners were approximately
$446 million in the fourth quarter 2023 compared to approximately
$435 million in the third quarter of 2023 and $600 million in the
fourth quarter of 2022. BHG also sold $50 million in loans to
private investors and closed an asset backed security facility with
$300 million in loans during the fourth quarter of 2023 compared to
$564 million in the third quarter of 2023 and $504 million in the
fourth quarter of 2022.
- BHG increased its reserves for on-balance sheet loan losses to
$302.6 million, or 9.33 percent of loans held for investment at
Dec. 31, 2023, compared to 6.44 percent at Sept. 30, 2023. The
increase reflects BHG's adoption for lifetime credit losses
associated with its implementation of the current expected credit
loss (CECL) methodology on Oct. 1, 2023.
- The negative impact of the CECL adoption to Pinnacle's equity
as of Oct. 1, 2023 was $35.0 million net of tax.
- BHG also decreased its accrual for losses attributable to loan
substitutions and prepayments for loans previously sold through its
community bank auction platform to $356.6 million, or 5.39 percent
of the loans that have been previously sold and were unpaid, at
Dec. 31, 2023 compared to 5.46 percent at Sept. 30, 2023.
- Noninterest expense for the quarter ended Dec. 31, 2023 was
$251.2 million, compared to $213.2 million in the third quarter of
2023 and $202.0 million in the fourth quarter of 2022, reflecting a
year-over-year increase of 24.3 percent. Noninterest expense
results for the fourth quarter of 2023 were negatively impacted by
the $29.0 million FDIC special assessment. Excluding the FDIC
special assessment, year-over-year noninterest expenses would have
increased by 10.0 percent between the fourth quarter of 2023 and
the fourth quarter of 2022.
- Salaries and employee benefits were $133.3 million in the
fourth quarter of 2023, compared to $130.3 million in the third
quarter of 2023 and $131.8 million in the fourth quarter of 2022,
reflecting a year-over-year increase of 1.2 percent. The increase
in salaries and employee benefits expense, on a linked-quarter
basis, of approximately $3.0 million was due to the increase in the
costs related to increased headcount and additional expense for the
firm's annual cash and equity incentive plans. Full-time equivalent
associates increased to 3,357.0 at Dec. 31, 2023 from 3,241.5 at
Dec. 31, 2022, a year-over-year increase of 3.6 percent.
- Equipment and occupancy costs were $38.0 million in the fourth
quarter of 2023, compared to $36.9 million in the third quarter of
2023 and $29.3 million in the fourth quarter of 2022, reflecting a
year-over-year increase of 29.6 percent. Contributing to the
year-over-year increase is the impact of increased rent expense
from the sale leaseback transaction completed in the second quarter
of 2023.
- Noninterest expense categories, other than those specifically
noted above, were $50.8 million in the fourth quarter of 2023,
compared to $46.0 million in the third quarter of 2023 and $40.9
million in the fourth quarter of 2022, reflecting a year-over-year
increase of 24.2 percent.
"Continued increases in short-term rates, quantitative
tightening and an inverted yield curve made for a difficult
operating environment in 2023," said Harold R. Carpenter,
Pinnacle's chief financial officer. "As we enter 2024, we find
ourselves much more optimistic about the macro environment,
particularly around the prospects of a 'soft landing', lower levels
of inflation and the anticipated direction of interest rates. Even
though many issues remain, including a stubborn inverted yield
curve, we believe we will have the opportunity to manage our
balance sheet to produce stronger earnings in 2024 than in
2023.
"As anticipated, BHG's results for the fourth quarter of 2023
declined from those in the third quarter. Income related to BHG was
down 41 percent in 2023 compared to 2022. During the fourth quarter
of 2023, BHG implemented several initiatives aimed at increasing
earnings in future periods, including eliminating several business
lines with reduction of corresponding personnel costs. As a result,
BHG’s total operating expense decreased between the fourth and
third quarters of 2023 by 16 percent. Charges related to these
matters in the fourth quarter of 2023 were $4.0 million compared to
charges in the third quarter of 2023 of $10 million.
"Pinnacle's incentive expenses did increase slightly in the
fourth quarter from the amounts in the third quarter as we
finalized our performance incentive calculations for 2023. Our
performance in 2023 resulted in an award under our annual cash
incentive plan to participants of approximately 62 percent of each
participants’ target award. The payout was below target because the
firm's revenue and EPS were less than originally targeted. Our
annual cash bonus plan award amounted to approximately $46.3
million for 2023 which reflects a savings in 2023 of approximately
$30.0 million compared to what the firm would have incurred had we
paid participants at target."
SOUNDNESS AND PROFITABILITY:
Three months ended
Year ended
December 31,
2023
September 30,
2023
December 31,
2022
December 31,
2023
December 31,
2022
Net interest margin
3.06
%
3.06
%
3.60
%
3.18
%
3.29
%
Efficiency ratio
63.37
%
52.26
%
50.29
%
52.36
%
50.47
%
Return on average assets
0.76
%
1.08
%
1.29
%
1.19
%
1.37
%
Return on average tangible common equity
(TCE)
9.53
%
13.43
%
15.95
%
14.78
%
16.65
%
As of
December 31,
2023
September 30,
2023
December 31,
2022
Shareholders' equity to total assets
12.6
%
12.3
%
13.2
%
Average loan to deposit ratio
84.05
%
82.80
%
83.10
%
Uninsured/uncollateralized deposits to
total deposits
31.32
%
28.89
%
39.21
%
Tangible common equity to tangible
assets
8.6
%
8.2
%
8.5
%
Book value per common share
$
75.80
$
73.23
$
69.35
Tangible book value per common share
$
51.38
$
48.78
$
44.74
Annualized net loan charge-offs to avg.
loans (1)
0.17
%
0.23
%
0.17
%
Nonperforming assets to total loans, ORE
and other nonperforming assets (NPAs)
0.27
%
0.14
%
0.16
%
Classified asset ratio (Pinnacle Bank)
(2)
5.20
%
4.60
%
2.40
%
Allowance for credit losses (ACL) to total
loans
1.08
%
1.08
%
1.04
%
(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.
- Net interest margin was 3.06 percent for the fourth quarter of
2023, compared to 3.06 percent for the third quarter of 2023 and
3.60 percent for the fourth quarter of 2022. Net interest margin
decreased to 3.18 percent for the year ended Dec. 31, 2023,
compared to 3.29 percent for the year ended Dec. 31, 2022.
- Provision for credit losses was $16.3 million in the fourth
quarter of 2023, compared to $26.8 million in the third quarter of
2023 and $24.8 million in the fourth quarter of 2022. Net
charge-offs were $13.5 million for the quarter ended Dec. 31, 2023,
compared to $18.1 million for the quarter ended Sept. 30, 2023 and
$11.7 million for the quarter ended Dec. 31, 2022. Annualized net
charge-offs for the fourth quarter of 2023 were 0.17 percent.
- The effective tax rate for the fourth quarter of 2023 was 26.3
percent inclusive of BOLI restructuring taxes and penalties of $9.1
million.
- Nonperforming assets were $86.6 million at Dec. 31, 2023,
compared to $46.0 million at Sept. 30, 2023 and $46.1 million at
Dec. 31, 2022. The ratio of the allowance for credit losses to
nonperforming loans at Dec. 31, 2023 was 429.0 percent, compared to
806.0 percent at Sept. 30, 2023 and 788.8 percent at Dec. 31, 2022.
- Although at Dec. 31, 2023, the ratio of nonperforming assets to
total loans and ORE was near historically low levels at 0.27
percent, the ratio did increase during the fourth quarter due
primarily to the downgrade of a $40.2 million loan to a company
headquartered in Middle Tennessee which owns facilities that are
leased to healthcare operators around the country. The firm
believes that this borrower is addressing the weaknesses identified
in a prudent manner and believes no further action on this loan is
required at this time.
- Classified assets were $251.3 million at Dec. 31, 2023,
compared to $218.9 million at Sept. 30, 2023 and $104.2 at Dec. 31,
2022.
"We are obviously pleased that our net interest margin held at
3.06 percent during the fourth quarter of 2023 and was essentially
flat with the third quarter," Carpenter said. "Another positive for
the quarter was the increase in tangible book value per common
share, which was $51.38 at Dec. 31, 2023, an increase of 14.8
percent over the $44.74 at Dec. 31, 2022. As you know, increasing
our tangible book value per common share remains an important
priority for our firm’s leadership.
"Lastly, net charge-offs to average loans for the fourth quarter
of 2023 decreased during the quarter to 0.17 percent from 0.23
percent in the prior quarter. Our credit officers continue to work
our loan portfolio looking for weaknesses and engaging borrowers
where circumstances warrant. We are pleased with the performance of
our loan portfolio thus far with our credit metrics continuing to
reflect a loan portfolio that has performed well thus far through
the challenging operating environment we have experienced."
BOARD OF DIRECTORS DECLARES DIVIDENDS
On Jan. 16, 2024, Pinnacle Financial's Board of Directors
approved a quarterly cash dividend of $0.22 per common share to be
paid on Feb. 23, 2024 to common shareholders of record as of the
close of business on Feb. 2, 2024. 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 Mar. 1, 2024 to shareholders of record
at the close of business on Feb. 15, 2024. 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.
CST on Jan. 17, 2024, to discuss fourth 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 and fastest growing bank in the
Nashville-Murfreesboro-Franklin MSA according to 2023 deposit data
from the FDIC, and is listed by Forbes as No. 27 among Americas
Best Banks, higher than any other bank headquartered in Tennessee,
North Carolina, South Carolina and Georgia. Pinnacle also earned a
spot on the 2023 list of 100 Best Companies to Work For® in the
U.S., its seventh consecutive appearance and was recognized by
American Banker as one of America's Best Banks to Work For 11 years
in a row and No. 1 among banks with more than $10 billion in assets
in 2023.
Pinnacle owns a 49 percent interest in BHG Financial, which
provides innovative, hassle-free financial solutions to healthcare
practitioners and other professionals. Great Place to Work and
FORTUNE have listed BHG as a best workplace in multiple categories
since 2016.
The firm began operations in a single location in downtown
Nashville, TN in October 2000 and has since grown to approximately
$48.0 billion in assets as of Dec. 31, 2023. As the second-largest
bank holding company headquartered in Tennessee, Pinnacle operates
in 17 primarily urban markets across the Southeast.
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 and challenging economic conditions 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 the Southeast region of the United
States, 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 of Pinnacle Financial, Pinnacle Bank or
BHG, or companies with whom they do business; (xi) BHG's ability to
profitably grow its business and successfully execute on its
business plans; (xii) risks of expansion into new geographic or
product markets; (xiii) any matter that would cause Pinnacle
Financial to conclude that there was impairment of any asset,
including goodwill or other intangible assets; (xiv) the
ineffectiveness of Pinnacle Bank's hedging strategies, or the
unexpected counterparty failure or hedge failure of the underlying
hedges; (xv) 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;
(xvi) deterioration in the valuation of other real estate owned and
increased expenses associated therewith; (xvii) 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; (xviii) approval of the
declaration of any dividend by Pinnacle Financial's board of
directors; (xix) 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; (xx) 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; (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; (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
involving Pinnacle Financial, Pinnacle Bank or BHG; 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, losses on the
restructuring of certain BOLI contracts, a charge related to the
FDIC special assessment and other matters for the accounting
periods presented. 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 SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS –
UNAUDITED
(dollars in thousands, except for share
and per share data)
December 31, 2023
September 30, 2023
December 31, 2022
ASSETS
Cash and noninterest-bearing due from
banks
$
228,620
$
279,652
$
268,649
Restricted cash
86,873
17,356
31,447
Interest-bearing due from banks
1,914,856
2,855,094
877,286
Cash and cash equivalents
2,230,349
3,152,102
1,177,382
Securities purchased with agreement to
resell
558,009
500,000
513,276
Securities available-for-sale, at fair
value
4,317,530
3,863,697
3,558,870
Securities held-to-maturity (fair value of
$2.8 billion, $2.6 billion and $2.7 billion, net of allowance for
credit losses of $1.7 million, $1.7 million and $1.6 million at
Dec. 31, 2023, Sept. 30, 2023 and Dec. 31, 2022, respectively)
3,006,357
3,018,579
3,079,050
Consumer loans held-for-sale
104,217
119,489
42,237
Commercial loans held-for-sale
9,280
20,513
21,093
Loans
32,676,091
31,943,284
29,041,605
Less allowance for credit losses
(353,055
)
(346,192
)
(300,665
)
Loans, net
32,323,036
31,597,092
28,740,940
Premises and equipment, net
256,877
252,669
327,885
Equity method investment
445,223
480,996
443,185
Accrued interest receivable
217,491
177,390
161,182
Goodwill
1,846,973
1,846,973
1,846,973
Core deposits and other intangible
assets
27,465
29,216
34,555
Other real estate owned
3,937
2,555
7,952
Other assets
2,613,139
2,462,519
2,015,441
Total assets
$
47,959,883
$
47,523,790
$
41,970,021
LIABILITIES AND SHAREHOLDERS'
EQUITY
Deposits:
Noninterest-bearing
$
7,906,502
$
8,324,325
$
9,812,744
Interest-bearing
11,365,349
10,852,086
7,884,605
Savings and money market accounts
14,427,206
14,306,359
13,774,534
Time
4,840,753
4,813,039
3,489,355
Total deposits
38,539,810
38,295,809
34,961,238
Securities sold under agreements to
repurchase
209,489
195,999
194,910
Federal Home Loan Bank advances
2,138,169
2,110,598
464,436
Subordinated debt and other borrowings
424,938
424,718
424,055
Accrued interest payable
66,967
67,442
19,478
Other liabilities
544,722
591,583
386,512
Total liabilities
41,924,095
41,686,149
36,450,629
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 Dec. 31, 2023, Sept. 30, 2023 and Dec.
31, 2022, respectively
217,126
217,126
217,126
Common stock, par value $1.00; 180.0
million shares authorized; 76.8 million, 76.8 million and 76.5
million shares issued and outstanding at Dec. 31, 2023, Sept. 30,
2023 and Dec. 31, 2022, respectively
76,767
76,753
76,454
Additional paid-in capital
3,109,493
3,097,702
3,074,867
Retained earnings
2,784,927
2,745,934
2,341,706
Accumulated other comprehensive loss, net
of taxes
(152,525
)
(299,874
)
(190,761
)
Total shareholders' equity
6,035,788
5,837,641
5,519,392
Total liabilities and shareholders'
equity
$
47,959,883
$
47,523,790
$
41,970,021
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
Year ended
December 31, 2023
September 30, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Interest income:
Loans, including fees
$
530,604
$
508,963
$
387,328
$
1,950,365
$
1,182,492
Securities
Taxable
42,458
36,525
25,086
140,308
67,063
Tax-exempt
25,035
24,185
22,770
97,625
81,522
Federal funds sold and other
46,699
57,621
15,994
165,070
42,858
Total interest income
644,796
627,294
451,178
2,353,368
1,373,935
Interest expense:
Deposits
297,556
280,305
120,499
983,118
204,119
Securities sold under agreements to
repurchase
1,295
1,071
474
3,744
794
FHLB advances and other borrowings
28,693
28,676
10,745
104,388
39,729
Total interest expense
327,544
310,052
131,718
1,091,250
244,642
Net interest income
317,252
317,242
319,460
1,262,118
1,129,293
Provision for credit losses
16,314
26,826
24,805
93,596
67,925
Net interest income after provision for
credit losses
300,938
290,416
294,655
1,168,522
1,061,368
Noninterest income:
Service charges on deposit accounts
12,660
12,665
11,123
49,223
44,675
Investment services
13,410
13,253
11,765
52,432
46,441
Insurance sales commissions
3,072
2,882
2,668
13,670
12,186
Gains (losses) on mortgage loans sold,
net
879
2,012
(65
)
6,511
7,268
Investment gains (losses) on sales,
net
14
(9,727
)
—
(19,674
)
156
Trust fees
6,987
6,640
5,767
26,683
23,511
Income from equity method investment
14,432
24,967
21,005
85,402
145,466
Gain on sale of fixed assets
102
87
32
86,048
457
Other noninterest income
27,532
38,018
30,026
132,958
135,964
Total noninterest income
79,088
90,797
82,321
433,253
416,124
Noninterest expense:
Salaries and employee benefits
133,333
130,344
131,802
531,828
510,175
Equipment and occupancy
38,021
36,900
29,329
138,980
109,672
Other real estate, net
125
33
179
315
280
Marketing and other business
development
6,829
5,479
7,579
23,914
21,073
Postage and supplies
2,840
2,621
2,682
11,143
10,168
Amortization of intangibles
1,751
1,765
1,937
7,090
7,810
Other noninterest expense
68,269
36,091
28,539
174,499
120,821
Total noninterest expense
251,168
213,233
202,047
887,769
779,999
Income before income taxes
128,858
167,980
174,929
714,006
697,493
Income tax expense
33,879
35,377
37,082
151,854
136,751
Net income
94,979
132,603
137,847
562,152
560,742
Preferred stock dividends
(3,798
)
(3,798
)
(3,798
)
(15,192
)
(15,192
)
Net income available to common
shareholders
$
91,181
$
128,805
$
134,049
$
546,960
$
545,550
Per share information:
Basic net income per common share
$
1.20
$
1.69
$
1.77
$
7.20
$
7.20
Diluted net income per common share
$
1.19
$
1.69
$
1.76
$
7.14
$
7.17
Weighted average common shares
outstanding:
Basic
76,068,016
76,044,182
75,771,828
76,016,370
75,735,404
Diluted
76,823,991
76,201,916
76,198,411
76,647,543
76,133,865
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
—
16
16
312
—
—
328
Preferred dividends paid ($67.52 per
share)
—
—
—
—
(15,192
)
—
(15,192
)
Common dividends paid ($0.88 per
share)
—
—
—
—
(68,194
)
—
(68,194
)
Issuance of restricted common shares, net
of forfeitures
—
203
203
(203
)
—
—
—
Restricted shares withheld for taxes &
related tax benefits
—
(51
)
(51
)
(4,991
)
—
—
(5,042
)
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
—
143
143
(5,605
)
—
—
(5,462
)
Compensation expense for restricted shares
& performance stock units
—
—
—
39,552
—
—
39,552
Net income
—
—
—
—
560,742
—
560,742
Other comprehensive loss
—
—
—
—
—
(297,947
)
(297,947
)
Balance at December 31, 2022
$
217,126
76,454
$
76,454
$
3,074,867
$
2,341,706
$
(190,761
)
$
5,519,392
Balance at December 31, 2022
$
217,126
76,454
$
76,454
$
3,074,867
$
2,341,706
$
(190,761
)
$
5,519,392
Cumulative change due to accounting
pronouncement
—
—
—
—
(35,002
)
—
(35,002
)
Exercise of employee common stock options
& related tax benefits
—
40
40
931
—
—
971
Preferred dividends paid ($67.52 per
share)
—
—
—
—
(15,192
)
—
(15,192
)
Common dividends paid ($0.88 per
share)
—
—
—
—
(68,737
)
—
(68,737
)
Issuance of restricted common shares, net
of forfeitures
—
235
235
(235
)
—
—
—
Restricted shares withheld for taxes &
related tax benefits
—
(59
)
(59
)
(4,127
)
—
—
(4,186
)
Issuance of common stock pursuant to RSU
and PSU agreements, net of shares withheld for taxes & related
tax benefits
—
97
97
(3,822
)
—
—
(3,725
)
Compensation expense for restricted shares
& performance stock units
—
—
—
41,879
—
—
41,879
Net income
—
—
—
—
562,152
—
562,152
Other comprehensive income
—
—
—
—
—
38,236
38,236
Balance at December 31, 2023
$
217,126
76,767
$
76,767
$
3,109,493
$
2,784,927
$
(152,525
)
$
6,035,788
PINNACLE FINANCIAL PARTNERS, INC. AND
SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA –
UNAUDITED
(dollars in thousands)
December
September
June
March
December
September
2023
2023
2023
2023
2022
2022
Balance sheet data, at quarter
end:
Commercial and industrial loans
$
11,666,691
11,307,611
10,983,911
10,723,327
10,241,362
9,748,994
Commercial real estate - owner occupied
loans
4,044,896
3,944,616
3,845,359
3,686,796
3,587,257
3,426,271
Commercial real estate - investment
loans
5,929,595
5,957,426
5,682,652
5,556,484
5,277,454
5,122,127
Commercial real estate - multifamily and
other loans
1,605,899
1,490,184
1,488,236
1,331,249
1,265,165
1,042,854
Consumer real estate - mortgage loans
4,851,531
4,768,780
4,692,673
4,531,285
4,435,046
4,271,913
Construction and land development
loans
4,041,081
3,942,143
3,904,774
3,909,024
3,679,498
3,548,970
Consumer and other loans
536,398
532,524
555,685
559,706
555,823
550,565
Total loans
32,676,091
31,943,284
31,153,290
30,297,871
29,041,605
27,711,694
Allowance for credit losses
(353,055
)
(346,192
)
(337,459
)
(313,841
)
(300,665
)
(288,088
)
Securities
7,323,887
6,882,276
6,623,457
6,878,831
6,637,920
6,481,018
Total assets
47,959,883
47,523,790
46,875,982
45,119,587
41,970,021
41,000,118
Noninterest-bearing deposits
7,906,502
8,324,325
8,436,799
9,018,439
9,812,744
10,567,873
Total deposits
38,539,810
38,295,809
37,722,661
36,178,553
34,961,238
33,690,049
Securities sold under agreements to
repurchase
209,489
195,999
163,774
149,777
194,910
190,554
FHLB advances
2,138,169
2,110,598
2,200,917
2,166,508
464,436
889,248
Subordinated debt and other borrowings
424,938
424,718
424,497
424,276
424,055
423,834
Total shareholders' equity
6,035,788
5,837,641
5,843,759
5,684,128
5,519,392
5,342,112
Balance sheet data, quarterly
averages:
Total loans
$
32,371,506
31,529,854
30,882,205
29,633,640
28,402,197
27,021,031
Securities
6,967,488
6,801,285
6,722,247
6,765,126
6,537,262
6,542,026
Federal funds sold and other
3,615,908
4,292,956
3,350,705
2,100,757
1,828,588
2,600,978
Total earning assets
42,954,902
42,624,095
40,955,157
38,499,523
36,768,047
36,164,035
Total assets
47,668,519
47,266,199
45,411,961
42,983,854
41,324,251
40,464,649
Noninterest-bearing deposits
8,342,572
8,515,733
8,599,781
9,332,317
10,486,233
10,926,069
Total deposits
38,515,560
38,078,665
36,355,859
35,291,775
34,177,281
33,108,415
Securities sold under agreements to
repurchase
202,601
184,681
162,429
219,082
199,610
215,646
FHLB advances
2,112,809
2,132,638
2,352,045
1,130,356
701,813
1,010,865
Subordinated debt and other borrowings
426,999
426,855
426,712
426,564
427,503
426,267
Total shareholders' equity
5,889,075
5,898,196
5,782,239
5,605,604
5,433,274
5,403,244
Statement of operations data, for the
three months ended:
Interest income
$
644,796
627,294
575,239
506,039
451,178
371,764
Interest expense
327,544
310,052
259,846
193,808
131,718
65,980
Net interest income
317,252
317,242
315,393
312,231
319,460
305,784
Provision for credit losses
16,314
26,826
31,689
18,767
24,805
27,493
Net interest income after provision for
credit losses
300,938
290,416
283,704
293,464
294,655
278,291
Noninterest income
79,088
90,797
173,839
89,529
82,321
104,805
Noninterest expense
251,168
213,233
211,641
211,727
202,047
199,253
Income before income taxes
128,858
167,980
245,902
171,266
174,929
183,843
Income tax expense
33,879
35,377
48,603
33,995
37,082
35,185
Net income
94,979
132,603
197,299
137,271
137,847
148,658
Preferred stock dividends
(3,798
)
(3,798
)
(3,798
)
(3,798
)
(3,798
)
(3,798
)
Net income available to common
shareholders
$
91,181
128,805
193,501
133,473
134,049
144,860
Profitability and other ratios:
Return on avg. assets (1)
0.76
%
1.08
%
1.71
%
1.26
%
1.29
%
1.42
%
Return on avg. equity (1)
6.14
%
8.66
%
13.42
%
9.66
%
9.79
%
10.64
%
Return on avg. common equity (1)
6.38
%
9.00
%
13.95
%
10.05
%
10.20
%
11.08
%
Return on avg. tangible common equity
(1)
9.53
%
13.43
%
21.06
%
15.43
%
15.95
%
17.40
%
Common stock dividend payout ratio
(14)
12.26
%
11.35
%
11.04
%
12.07
%
12.26
%
12.34
%
Net interest margin (2)
3.06
%
3.06
%
3.20
%
3.40
%
3.60
%
3.47
%
Noninterest income to total revenue
(3)
19.95
%
22.25
%
35.53
%
22.28
%
20.49
%
25.53
%
Noninterest income to avg. assets (1)
0.66
%
0.76
%
1.54
%
0.84
%
0.79
%
1.03
%
Noninterest exp. to avg. assets (1)
2.09
%
1.79
%
1.87
%
2.00
%
1.94
%
1.95
%
Efficiency ratio (4)
63.37
%
52.26
%
43.26
%
52.70
%
50.29
%
48.53
%
Avg. loans to avg. deposits
84.05
%
82.80
%
84.94
%
83.97
%
83.10
%
81.61
%
Securities to total assets
15.27
%
14.48
%
14.13
%
15.25
%
15.82
%
15.81
%
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, 2023
December 31, 2022
Average Balances
Interest
Rates/ Yields
Average Balances
Interest
Rates/ Yields
Interest-earning assets
Loans (1) (2)
$
32,371,506
$
530,604
6.62
%
$
28,402,197
$
387,328
5.54
%
Securities
Taxable
3,801,278
42,458
4.43
%
3,421,072
25,086
2.91
%
Tax-exempt (2)
3,166,210
25,035
3.74
%
3,116,190
22,770
3.49
%
Interest-bearing due from banks
2,876,213
39,761
5.48
%
1,117,468
10,626
3.77
%
Resell agreements
507,368
3,216
2.51
%
521,787
3,432
2.61
%
Federal funds sold
—
—
—
%
—
—
—
%
Other
232,327
3,722
6.36
%
189,333
1,936
4.06
%
Total interest-earning assets
42,954,902
$
644,796
6.09
%
36,768,047
$
451,178
5.02
%
Nonearning assets
Intangible assets
1,875,546
1,881,597
Other nonearning assets
2,838,071
2,674,607
Total assets
$
47,668,519
$
41,324,251
Interest-bearing liabilities
Interest-bearing deposits:
Interest checking
10,821,528
106,368
3.90
%
7,262,128
36,808
2.01
%
Savings and money market
14,455,770
137,330
3.77
%
13,337,326
68,677
2.04
%
Time
4,895,690
53,858
4.36
%
3,091,594
15,014
1.93
%
Total interest-bearing deposits
30,172,988
297,556
3.91
%
23,691,048
120,499
2.02
%
Securities sold under agreements to
repurchase
202,601
1,295
2.54
%
199,610
474
0.94
%
Federal Home Loan Bank advances
2,112,809
22,674
4.26
%
701,813
5,380
3.04
%
Subordinated debt and other borrowings
426,999
6,019
5.59
%
427,503
5,365
4.98
%
Total interest-bearing liabilities
32,915,397
327,544
3.95
%
25,019,974
131,718
2.09
%
Noninterest-bearing deposits
8,342,572
—
—
10,486,233
—
—
Total deposits and interest-bearing
liabilities
41,257,969
$
327,544
3.15
%
35,506,207
$
131,718
1.47
%
Other liabilities
521,475
384,770
Shareholders' equity
5,889,075
5,433,274
Total liabilities and shareholders'
equity
$
47,668,519
$
41,324,251
Net interest
income
$
317,252
$
319,460
Net interest spread (3)
2.14
%
2.93
%
Net interest margin (4)
3.06
%
3.60
%
(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 $14.5 million of
taxable equivalent income for the three months ended December 31,
2023 compared to $14.1 million for the three months ended December
31, 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 December 31, 2023 would have been
2.94% compared to a net interest spread of 3.55% for the three
months ended December 31, 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)
Year ended
Year ended
December 31, 2023
December 31, 2022
Average Balances
Interest
Rates/ Yields
Average Balances
Interest
Rates/ Yields
Interest-earning assets
Loans (1) (2)
$
31,112,968
$
1,950,365
6.36
%
$
26,182,102
$
1,182,492
4.62
%
Securities
Taxable
3,562,527
140,308
3.94
%
3,405,346
67,063
1.97
%
Tax-exempt (2)
3,252,030
97,625
3.58
%
3,013,505
81,522
3.26
%
Interest-bearing due from banks
2,611,506
140,036
5.36
%
1,815,251
23,206
1.28
%
Resell agreements
508,190
13,176
2.59
%
1,010,443
14,106
1.40
%
Federal funds sold
—
—
—
%
—
—
—
%
Other
227,147
11,858
5.22
%
181,824
5,546
3.05
%
Total interest-earning assets
41,274,368
$
2,353,368
5.82
%
35,608,471
$
1,373,935
3.98
%
Nonearning assets
Intangible assets
1,878,204
1,877,870
Other nonearning assets
2,696,900
2,324,564
Total assets
$
45,849,472
$
39,810,905
Interest-bearing liabilities
Interest-bearing deposits:
Interest checking
9,565,965
333,631
3.49
%
6,737,026
63,549
0.94
%
Savings and money market
14,162,523
473,327
3.34
%
12,695,974
112,218
0.88
%
Time
4,606,756
176,160
3.82
%
2,478,629
28,352
1.14
%
Total interest-bearing deposits
28,335,244
983,118
3.47
%
21,911,629
204,119
0.93
%
Securities sold under agreements to
repurchase
192,132
3,744
1.95
%
203,082
794
0.39
%
Federal Home Loan Bank advances
1,935,204
80,958
4.18
%
923,964
20,848
2.26
%
Subordinated debt and other borrowings
426,784
23,430
5.49
%
429,169
18,881
4.40
%
Total interest-bearing liabilities
30,889,364
1,091,250
3.53
%
23,467,844
244,642
1.04
%
Noninterest-bearing deposits
8,736,843
—
—
10,674,249
—
—
Total deposits and interest-bearing
liabilities
39,626,207
$
1,091,250
2.75
%
34,142,093
$
244,642
0.72
%
Other liabilities
428,348
297,409
Shareholders' equity
5,794,917
5,371,403
Total liabilities and shareholders'
equity
$
45,849,472
$
39,810,905
Net interest
income
$
1,262,118
$
1,129,293
Net interest spread (3)
2.29
%
2.94
%
Net interest margin (4)
3.18
%
3.29
%
(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 $48.5 million of
taxable equivalent income for the year ended December 31, 2023
compared to $43.0 million for the year ended December 31, 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 year ended December 31, 2023 would have been 3.07%
compared to a net interest spread of 3.26% for the year ended
December 31, 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)
December
September
June
March
December
September
2023
2023
2023
2023
2022
2022
Asset quality information and
ratios:
Nonperforming assets:
Nonaccrual loans
$
82,288
42,950
44,289
36,988
38,116
34,115
ORE and other nonperforming assets
(NPAs)
4,347
3,019
3,105
7,802
7,952
7,787
Total nonperforming assets
$
86,635
45,969
47,394
44,790
46,068
41,902
Past due loans over 90 days and still
accruing interest
$
6,004
4,969
5,257
5,284
4,406
6,757
Accruing purchase credit deteriorated
loans
$
6,501
7,010
7,415
7,684
8,060
8,759
Net loan charge-offs
$
13,451
18,093
9,771
7,291
11,729
10,983
Allowance for credit losses to nonaccrual
loans
429.0
%
806.0
%
762.0
%
848.5
%
788.8
%
844.5
%
As a percentage of total loans:
Past due accruing loans over 30 days
0.23
%
0.16
%
0.14
%
0.14
%
0.15
%
0.13
%
Potential problem loans
0.39
%
0.42
%
0.32
%
0.22
%
0.19
%
0.21
%
Allowance for credit losses
1.08
%
1.08
%
1.08
%
1.04
%
1.04
%
1.04
%
Nonperforming assets to total loans, ORE
and other NPAs
0.27
%
0.14
%
0.15
%
0.15
%
0.16
%
0.15
%
Classified asset ratio (Pinnacle Bank)
(6)
5.2
%
4.6
%
3.3
%
2.7
%
2.4
%
2.6
%
Annualized net loan charge-offs to avg.
loans (5)
0.17
%
0.23
%
0.13
%
0.10
%
0.17
%
0.16
%
Interest rates and yields:
Loans
6.62
%
6.50
%
6.30
%
6.00
%
5.54
%
4.73
%
Securities
4.12
%
3.81
%
3.66
%
3.47
%
3.19
%
2.66
%
Total earning assets
6.09
%
5.95
%
5.74
%
5.45
%
5.02
%
4.20
%
Total deposits, including non-interest
bearing
3.07
%
2.92
%
2.52
%
2.03
%
1.40
%
0.66
%
Securities sold under agreements to
repurchase
2.54
%
2.30
%
1.93
%
1.10
%
0.94
%
0.34
%
FHLB advances
4.26
%
4.22
%
4.20
%
3.94
%
3.04
%
2.26
%
Subordinated debt and other borrowings
5.59
%
5.54
%
5.44
%
5.38
%
4.98
%
4.51
%
Total deposits and interest-bearing
liabilities
3.15
%
3.01
%
2.65
%
2.12
%
1.47
%
0.75
%
Capital and other ratios (6):
Pinnacle Financial ratios:
Shareholders' equity to total assets
12.6
%
12.3
%
12.5
%
12.6
%
13.2
%
13.0
%
Common equity Tier one
10.3
%
10.3
%
10.2
%
9.9
%
10.0
%
10.0
%
Tier one risk-based
10.8
%
10.9
%
10.8
%
10.5
%
10.5
%
10.7
%
Total risk-based
12.7
%
12.8
%
12.7
%
12.4
%
12.4
%
12.6
%
Leverage
9.4
%
9.4
%
9.5
%
9.6
%
9.7
%
9.7
%
Tangible common equity to tangible
assets
8.6
%
8.2
%
8.3
%
8.3
%
8.5
%
8.3
%
Pinnacle Bank ratios:
Common equity Tier one
11.1
%
11.2
%
11.1
%
10.8
%
10.9
%
11.1
%
Tier one risk-based
11.1
%
11.2
%
11.1
%
10.8
%
10.9
%
11.1
%
Total risk-based
12.0
%
12.0
%
11.9
%
11.6
%
11.6
%
11.8
%
Leverage
9.7
%
9.7
%
9.8
%
9.9
%
10.1
%
10.1
%
Construction and land development
loans
as a percentage of total capital (17)
84.2
%
83.1
%
84.5
%
88.5
%
85.9
%
85.4
%
Non-owner occupied commercial real estate
and
multi-family as a percentage of total
capital (17)
259.0
%
256.4
%
256.7
%
261.1
%
249.6
%
244.0
%
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
2023
2023
2023
2023
2022
2022
Per share data:
Earnings per common share – basic
$
1.20
1.69
2.55
1.76
1.77
1.91
Earnings per common share - basic,
excluding non-GAAP adjustments
$
1.70
1.79
1.80
1.76
1.77
1.91
Earnings per common share – diluted
$
1.19
1.69
2.54
1.76
1.76
1.91
Earnings per common share - diluted,
excluding non-GAAP adjustments
$
1.68
1.79
1.79
1.76
1.76
1.91
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)
$
75.80
73.23
73.32
71.24
69.35
67.07
Tangible book value per common share at
quarter end (7)
$
51.38
48.78
48.85
46.75
44.74
42.44
Revenue per diluted common share
$
5.16
5.35
6.43
5.28
5.27
5.40
Revenue per diluted common share,
excluding non-GAAP adjustments
$
5.25
5.48
5.43
5.28
5.27
5.40
Investor information:
Closing sales price of common stock on
last trading day of quarter
$
87.22
67.04
56.65
55.16
73.40
81.10
High closing sales price of common stock
during quarter
$
89.34
75.95
57.93
82.79
87.81
87.66
Low closing sales price of common stock
during quarter
$
60.77
56.41
46.17
52.51
70.74
68.68
Closing sales price of depositary shares
on last trading day of quarter
$
22.60
22.70
23.75
24.15
25.35
25.33
High closing sales price of depositary
shares during quarter
$
23.65
23.85
24.90
25.71
25.60
26.23
Low closing sales price of depositary
shares during quarter
$
21.00
21.54
19.95
20.77
23.11
24.76
Other information:
Residential mortgage loan sales:
Gross loans sold
$
142,556
198,247
192,948
120,146
134,514
181,139
Gross fees (8)
$
3,191
4,350
4,133
2,795
3,149
3,189
Gross fees as a percentage of loans
originated
2.24
%
2.19
%
2.14
%
2.33
%
2.34
%
1.76
%
Net gain (loss) on residential mortgage
loans sold
$
879
2,012
1,567
2,053
(65
)
1,117
Investment gains (losses) on sales of
securities, net (13)
$
14
(9,727
)
(9,961
)
—
—
217
Brokerage account assets, at quarter end
(9)
$
9,810,457
9,041,716
9,007,230
8,634,339
8,049,125
7,220,405
Trust account managed assets, at quarter
end
$
5,530,495
5,047,128
5,084,592
4,855,951
4,560,752
4,162,639
Core deposits (10)
$
33,738,917
33,606,783
32,780,767
32,054,111
31,301,077
30,748,817
Core deposits to total funding (10)
81.7
%
81.9
%
80.9
%
82.4
%
86.8
%
87.4
%
Risk-weighted assets
$
40,205,295
39,527,086
38,853,588
38,117,659
36,216,901
35,281,315
Number of offices
128
128
127
126
123
120
Total core deposits per office
$
263,585
262,553
258,116
254,398
254,480
256,240
Total assets per full-time equivalent
employee
$
14,287
14,274
14,166
13,750
12,948
12,875
Annualized revenues per full-time
equivalent employee
$
468.4
486.2
593.0
496.5
491.8
511.5
Annualized expenses per full-time
equivalent employee
$
296.8
254.1
256.5
261.7
247.3
248.2
Number of employees (full-time
equivalent)
3,357.0
3,329.5
3,309.0
3,281.5
3,241.5
3,184.5
Associate retention rate (11)
94.2
%
93.6
%
94.1
%
93.8
%
93.8
%
93.6
%
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
Year ended
(dollars in thousands, except per share
data)
December
September
December
December
December
2023
2023
2022
2023
2022
Net interest income
$
317,252
317,242
319,460
1,262,118
1,129,293
Noninterest income
79,088
90,797
82,321
433,253
416,124
Total revenues
396,340
408,039
401,781
1,695,371
1,545,417
Less: Investment losses (gains) on sales
of securities, net
(14
)
9,727
—
19,674
(156
)
Gain on sale of fixed assets as a result
of sale-leaseback transaction
—
—
—
(85,692
)
—
Loss on BOLI restructuring
7,166
—
—
7,166
—
Total revenues excluding the impact of
adjustments noted above
$
403,492
417,766
401,781
1,636,519
1,545,261
Noninterest expense
$
251,168
213,233
202,047
887,769
779,999
Less: ORE expense (benefit)
125
33
179
315
280
FDIC special assessment
29,000
—
—
29,000
—
Noninterest expense excluding the impact
of adjustments noted above
$
222,043
213,200
201,868
858,454
779,719
Pre-tax income
$
128,858
167,980
174,929
714,006
697,493
Provision for credit losses
16,314
26,826
24,805
93,596
67,925
Pre-tax pre-provision net revenue
145,172
194,806
199,734
807,602
765,418
Less: Adjustments noted above
36,277
9,760
179
(29,537
)
124
Adjusted pre-tax pre-provision net revenue
(12)
$
181,449
204,566
199,913
778,065
765,542
Noninterest income
$
79,088
90,797
82,321
433,253
416,124
Less: Adjustments noted above
7,152
9,727
—
(58,852
)
(156
)
Noninterest income excluding the impact of
adjustments noted above
$
86,240
100,524
82,321
374,401
415,968
Efficiency ratio (4)
63.37
%
52.26
%
50.29
%
52.36
%
50.47
%
Adjustments noted above
(8.34
)%
(1.23
)%
(0.05
)%
0.10
%
(0.01
)%
Efficiency ratio excluding adjustments
noted above (4)
55.03
%
51.03
%
50.24
%
52.46
%
50.46
%
Total average assets
$
47,668,519
47,266,199
41,324,251
45,849,472
39,810,905
Noninterest income to average assets
(1)
0.66
%
0.76
%
0.79
%
0.94
%
1.05
%
Less: Adjustments noted above
0.06
%
0.08
%
—
%
(0.12
)%
(0.01
)%
Noninterest income (excluding adjustments
noted above) to average assets (1)
0.72
%
0.84
%
0.79
%
0.82
%
1.04
%
Noninterest expense to average assets
(1)
2.09
%
1.79
%
1.94
%
1.94
%
1.96
%
Adjustments as noted above
(0.24
)%
—
%
—
%
(0.07
)%
—
%
Noninterest expense (excluding adjustments
noted above) to average assets (1)
1.85
%
1.79
%
1.94
%
1.87
%
1.96
%
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)
December
September
June
March
December
September
2023
2023
2023
2023
2022
2022
Net income available to common
shareholders
$
91,181
128,805
193,501
133,473
134,049
144,860
Less:
Investment (gains) losses on sales of
securities, net
(14
)
9,727
9,961
—
—
(217
)
Gain on sale of fixed assets as a result
of sale-leaseback transaction
—
—
(85,692
)
—
—
—
Loss on BOLI restructuring
16,252
—
—
—
—
—
ORE expense (benefit)
125
33
58
99
179
(90
)
FDIC special assessment
29,000
—
—
—
—
—
Tax effect on above noted adjustments
(16)
(7,278
)
(2,440
)
18,918
(25
)
(47
)
80
Net income available to common
shareholders excluding adjustments noted above
$
129,266
136,125
136,746
133,547
134,181
144,633
Basic earnings per common share
$
1.20
1.69
2.55
1.76
1.77
1.91
Less:
Investment (gains) losses on sales of
securities, net
—
0.13
0.13
—
—
—
Gain on sale of fixed assets as a result
of sale-leaseback transaction
—
—
(1.13
)
—
—
—
Loss on BOLI restructuring
0.21
—
—
—
—
—
ORE expense (benefit)
—
—
—
—
—
—
FDIC special assessment
0.38
—
—
—
—
—
Tax effect on above noted adjustments
(16)
(0.10
)
(0.03
)
0.25
—
—
—
Basic earnings per common share excluding
adjustments noted above
$
1.70
1.79
1.80
1.76
1.77
1.91
Diluted earnings per common share
$
1.19
1.69
2.54
1.76
1.76
1.91
Less:
Investment (gains) losses on sales of
securities, net
—
0.13
0.13
—
—
—
Gain on sale of fixed assets as a result
of sale-leaseback transaction
—
—
(1.13
)
—
—
—
Loss on BOLI restructuring
0.21
—
—
—
—
—
ORE expense (benefit)
—
—
—
—
—
—
FDIC special assessment
0.38
—
—
—
—
—
Tax effect on above noted adjustments
(16)
(0.09
)
(0.03
)
0.25
—
—
—
Diluted earnings per common share
excluding the adjustments noted above
$
1.68
1.79
1.80
1.76
1.76
1.90
Revenue per diluted common share
$
5.16
5.35
6.43
5.28
5.27
5.40
Adjustments due to revenue-impacting items
as noted above
0.09
0.13
(1.00
)
—
—
—
Revenue per diluted common share excluding
adjustments due to revenue-impacting items as noted above
$
5.25
5.48
5.43
5.28
5.27
5.40
Book value per common share at quarter end
(7)
$
75.80
73.23
73.32
71.24
69.35
67.07
Adjustment due to goodwill, core deposit
and other intangible assets
(24.42
)
(24.45
)
(24.47
)
(24.49
)
(24.61
)
(24.63
)
Tangible book value per common share at
quarter end (7)
$
51.38
48.78
48.85
46.75
44.74
42.44
Equity method investment (15)
Fee income from BHG, net of
amortization
$
14,432
24,967
26,924
19,079
21,005
41,341
Funding cost to support investment
5,803
6,546
6,005
5,768
5,438
4,680
Pre-tax impact of BHG
8,629
18,421
20,919
13,311
15,567
36,661
Income tax expense at statutory rates
(16)
2,157
4,605
5,230
3,328
4,069
9,583
Earnings attributable to BHG
$
6,472
13,816
15,689
9,983
11,498
27,078
Basic earnings per common share
attributable to BHG
$
0.09
0.18
0.21
0.13
0.15
0.36
Diluted earnings per common share
attributable to BHG
$
0.08
0.18
0.21
0.13
0.15
0.36
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
Year ended
(dollars in thousands, except per share
data)
December 31,
2023
2022
Net income available to common
shareholders
$
546,960
545,550
Less:
Investment losses on sales of securities,
net
19,674
(156
)
Gain on sale of fixed assets as a result
of sale-leaseback transaction
(85,692
)
—
Loss on BOLI restructuring
16,252
—
ORE expense
315
280
FDIC special assessment
29,000
—
Tax effect on above noted adjustments
(16)
9,176
(32
)
Net income available to common
shareholders excluding adjustments noted above
$
535,685
545,642
Basic earnings per common share
$
7.20
7.20
Less:
Investment losses on sales of securities,
net
0.26
—
Gain on sale of fixed assets as a result
of sale-leaseback transaction
(1.12
)
—
Loss on BOLI restructuring
0.21
—
ORE expense
—
—
FDIC special assessment
0.38
—
Tax effect on above noted adjustments
(16)
0.12
—
Basic earnings per common share excluding
adjustments noted above
$
7.05
7.20
Diluted earnings per common share
7.14
7.17
Less:
Investment losses on sales of securities,
net
0.26
—
Gain on sale of fixed assets as a result
of sale-leaseback transaction
(1.12
)
—
Loss on BOLI restructuring
0.21
—
ORE expense
—
—
FDIC special assessment
0.38
—
Tax effect on above noted adjustments
(16)
0.12
—
Diluted earnings per common share
excluding the adjustments noted above
$
6.99
7.17
Revenue per diluted common share
$
22.12
20.30
Adjustments due to revenue-impacting items
as noted above
(0.77
)
—
Revenue per diluted common share excluding
adjustments due to revenue-impacting items noted above
$
21.35
20.30
Equity method investment (15)
Fee income from BHG, net of
amortization
$
85,402
145,466
Funding cost to support investment
23,430
14,671
Pre-tax impact of BHG
61,972
130,795
Income tax expense at statutory rates
(16)
15,493
34,190
Earnings attributable to BHG
$
46,479
96,605
Basic earnings per common share
attributable to BHG
$
0.61
1.28
Diluted earnings per common share
attributable to BHG
$
0.61
1.27
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
Year ended
(dollars in thousands, except per share
data)
December
September
December
December
December
2023
2023
2022
2023
2022
Return on average assets (1)
0.76
%
1.08
%
1.29
%
1.19
%
1.37
%
Adjustments as noted above
0.32
%
0.06
%
—
%
(0.02
)%
—
%
Return on average assets excluding
adjustments noted above (1)
1.08
%
1.14
%
1.29
%
1.17
%
1.37
%
Tangible assets:
Total assets
$
47,959,883
47,523,790
41,970,021
$
47,959,883
41,970,021
Less: Goodwill
(1,846,973
)
(1,846,973
)
(1,846,973
)
(1,846,973
)
(1,846,973
)
Core deposit and other intangible
assets
(27,465
)
(29,216
)
(34,555
)
(27,465
)
(34,555
)
Net tangible assets
$
46,085,445
45,647,601
40,088,493
$
46,085,445
40,088,493
Tangible common equity:
Total shareholders' equity
$
6,035,788
5,837,641
5,519,392
$
6,035,788
5,519,392
Less: Preferred shareholders' equity
(217,126
)
(217,126
)
(217,126
)
(217,126
)
(217,126
)
Total common shareholders' equity
5,818,662
5,620,515
5,302,266
5,818,662
5,302,266
Less: Goodwill
(1,846,973
)
(1,846,973
)
(1,846,973
)
(1,846,973
)
(1,846,973
)
Core deposit and other intangible
assets
(27,465
)
(29,216
)
(34,555
)
(27,465
)
(34,555
)
Net tangible common equity
$
3,944,224
3,744,326
3,420,738
$
3,944,224
3,420,738
Ratio of tangible common equity to
tangible assets
8.56
%
8.20
%
8.53
%
8.56
%
8.53
%
Average tangible assets:
Average assets
$
47,668,519
47,266,199
41,324,251
$
45,849,472
39,810,905
Less: Average goodwill
(1,846,973
)
(1,846,973
)
(1,846,471
)
(1,846,973
)
(1,843,708
)
Average core deposit and other intangible
assets
(28,573
)
(30,367
)
(35,126
)
(31,231
)
(34,162
)
Net average tangible assets
$
45,792,973
45,388,859
39,442,654
$
43,971,268
37,933,035
Return on average assets (1)
0.76
%
1.08
%
1.29
%
1.19
%
1.37
%
Adjustment due to goodwill, core deposit
and other intangible assets
0.03
%
0.04
%
0.06
%
0.05
%
0.07
%
Return on average tangible assets (1)
0.79
%
1.13
%
1.35
%
1.24
%
1.44
%
Adjustments as noted above
0.33
%
0.06
%
—
%
(0.02
)%
—
%
Return on average tangible assets
excluding adjustments noted above (1)
1.12
%
1.19
%
1.35
%
1.22
%
1.44
%
Average tangible common equity:
Average shareholders' equity
$
5,889,075
5,898,196
5,433,274
$
5,794,917
5,371,403
Less: Average preferred equity
(217,126
)
(217,126
)
(217,126
)
(217,126
)
(217,126
)
Average common equity
5,671,949
5,681,070
5,216,148
5,577,791
5,154,277
Less: Average goodwill
(1,846,973
)
(1,846,973
)
(1,846,471
)
(1,846,973
)
(1,843,708
)
Average core deposit and other intangible
assets
(28,573
)
(30,367
)
(35,126
)
(31,231
)
(34,162
)
Net average tangible common equity
$
3,796,403
3,803,730
3,334,551
$
3,699,587
3,276,407
Return on average equity (1)
6.14
%
8.66
%
9.79
%
9.44
%
10.16
%
Adjustment due to average preferred
shareholders' equity
0.24
%
0.34
%
0.41
%
0.37
%
0.43
%
Return on average common equity (1)
6.38
%
9.00
%
10.20
%
9.81
%
10.58
%
Adjustment due to goodwill, core deposit
and other intangible assets
3.15
%
4.44
%
5.75
%
4.97
%
6.07
%
Return on average tangible common equity
(1)
9.53
%
13.43
%
15.95
%
14.78
%
16.65
%
Adjustments as noted above
3.98
%
0.76
%
0.01
%
(0.30
)%
—
%
Return on average tangible common equity
excluding adjustments noted above (1)
13.51
%
14.20
%
15.96
%
14.48
%
16.65
%
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 income 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.
12. Adjusted pre-tax, pre-provision net
revenue excludes the impact of ORE expenses and income, investment
gains and losses on sales of securities, gain on sale of fixed
assets as a result of the sale-leaseback transaction and the impact
of BOLI restructuring.
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 funding costs of the overall franchise
calculated using the firm's subordinated and other borrowing rates.
Income tax expense is calculated using statutory tax rates.
16. Adjustment includes tax effect
calculated using a blended statutory rate of 25.00 percent for
2023. For periods prior to 2023, tax effect calculated using a
blended statutory rate of 26.14 percent. Loss on BOLI restructuring
is not tax effected.
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/20240116690173/en/
MEDIA CONTACT: Joe Bass, 615-743-8219 FINANCIAL
CONTACT: Harold Carpenter, 615-744-3742 WEBSITE:
www.pnfp.com
Pinnacle Financial Partn... (NASDAQ:PNFP)
Gráfica de Acción Histórica
De Dic 2024 a Ene 2025
Pinnacle Financial Partn... (NASDAQ:PNFP)
Gráfica de Acción Histórica
De Ene 2024 a Ene 2025
