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Pinnacle Financial Gains Balance Sheet, Earnings Momentum in 4Q12



  Pinnacle Financial Gains Balance Sheet, Earnings Momentum in 4Q12

   $421 million in loan growth represents a 12.8% increase over prior year

Business Wire

NASHVILLE, Tenn. -- January 15, 2013

Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) today reported that its
net income per diluted common share available to common stockholders was $0.34
for the quarter ended Dec. 31, 2012, compared to net income per diluted common
share available to common stockholders of $0.17 for the quarter ended Dec. 31,
2011. Included in fourth quarter 2012 results was a $2.1 million charge due to
a Federal Home Loan Bank (FHLB) advance restructuring that was offset by $2.0
million in gains on the sale of securities. Net income per diluted common
share available to common stockholders was $1.10 for the year ended Dec. 31,
2012, compared to net income per diluted common share available to common
stockholders of $1.09 for the year ended Dec. 31, 2011.

Financial results for the year ended Dec. 31, 2012 include the impact of
accelerated accretion of $1.7 million for the remaining preferred stock
discount associated with the second quarter redemption of the remaining
outstanding shares of TARP preferred stock which, if excluded, would result in
net income per fully diluted share of $1.15 for 2012. Excluding the impact of
an income tax benefit of $22.5 million as a result of last year’s release of a
valuation allowance for deferred tax assets, net income for the year ended
Dec. 31, 2011 would have been $0.43 per fully diluted common share. As a
result, excluding the impact of both the accelerated accretion of the
preferred stock discount and the tax benefit from the release of the valuation
allowance, net income per diluted common share available to common
stockholders for the year ended Dec. 31, 2012, was approximately 167.4 percent
over the same period in 2011.

“This past year was a remarkable one for our firm and associates,” said M.
Terry Turner, Pinnacle’s president and chief executive officer. “We continued
to experience dramatic improvement in asset quality. Nonperforming assets as a
percentage of total loans and OREO decreased from 2.66 percent at Dec. 31,
2011, to 1.11 percent at Dec. 31, 2012, during a period when our net
charge-offs were just 0.29 percent. Additionally, our organic growth model
regained momentum as we experienced net loan growth of 12.8 percent in 2012
and 38.7 percent growth in average non-interest bearing demand deposits. We
redeemed the remaining preferred shares issued in conjunction with the TARP
program with no additional common shareholder dilution. We believe we have now
substantially completed the rehabilitation of our balance sheet, and we again
find ourselves optimistic about our growth and profitability prospects for the
coming year.”

Building the Core Earnings Capacity of the Firm

  * Loans at Dec. 31, 2012, were $3.712 billion, an increase of $187.0 million
    from Sept. 30, 2012, and $420.8 million from Dec. 31, 2011, a
    year-over-year growth rate of 12.8 percent. Commercial and industrial
    loans plus owner-occupied commercial real estate loans were $2.041 billion
    at Dec. 31, 2012, an increase of $159.2 million, or 8.5 percent, from
    Sept. 30, 2012, and $313.3 million, or 18.1 percent, from Dec. 31, 2011.
  * Since expanding to Knoxville in the summer of 2007, Pinnacle has continued
    its strong growth in that market. The Knoxville footprint reached $641.6
    million in loans at the end of fiscal year 2012, up from $594.2 million at
    Sept. 30, 2012, and an increase of 16.4 percent from $551.1 million at
    Dec. 31, 2011.
  * Average balances of noninterest bearing deposit accounts were $978.4
    million in the fourth quarter of 2012, up 22.4 percent over third quarter
    of 2012 and 38.7 percent over the same quarter last year.
  * Revenues for the quarter ended Dec. 31, 2012 were $55.4 million, compared
    to $49.0 million for the same quarter of last year. Excluding securities
    gains, revenues for the quarter ended Dec. 31, 2012 were $53.4 million,
    compared to $51.4 million for the third quarter of 2012 and $48.9 million
    for the same quarter of last year. Revenues for the quarter ended Dec. 31,
    2012, excluding securities gains, were up 3.8 percent on a linked-quarter
    basis and 9.2 percent over the same quarter last year.
  * Net interest margin increased for the ninth consecutive quarter to 3.80
    percent for the quarter ended Dec. 31, 2012, up from 3.78 percent last
    quarter and from 3.65 percent for the quarter ended Dec. 31, 2011.
  * The firm’s efficiency ratio, excluding the $2.0 million of securities
    gains, $1.4 million in ORE expense and $2.1 million of charges related to
    the restructuring of $60.0 million of FHLB advances, was 58.8 percent for
    the fourth quarter of 2012.
  * Pre-tax pre-provision income was $20.5 million for the quarter ended Dec.
    31, 2012, up 15.3 percent over last quarter and 40.0 percent over the same
    quarter last year.

“Growing high quality loans in the commercial segments of our markets is the
foundation for continued acceleration of operating leverage and
profitability,” Turner said. “During 2012, our relationship managers continued
to penetrate our markets as evidenced by the 12.8 percent increase in loans
this year. Also, the addition of several experienced commercial lenders in
2011 and 2012 bolstered our ability to grow organically and move market share
in 2012 and should contribute significantly to our anticipated loan growth in
2013.”

Aggressively Dealing with Credit Issues

  * Nonperforming assets declined by $16.98 million from Sept. 30, 2012, a
    linked-quarter reduction of 29.1 percent and the 10th consecutive
    quarterly reduction.

       * Nonperforming assets were 1.11 percent of total loans plus other real
         estate at Dec. 31, 2012, compared to 1.65 percent at Sept. 30, 2012,
         and 2.66 percent at Dec. 31, 2011.
       * Nonperforming loans declined by $13.75 million during the fourth
         quarter of 2012, a linked-quarter reduction of 37.6 percent and the
         11th consecutive quarterly reduction. Nonperforming loans are down
         52.3 percent from Dec. 31, 2011.
       * Other real estate declined by 14.8 percent, or $3.24 million, during
         the fourth quarter of 2012 compared to the third quarter of 2012,
         inclusive of $0.6 million in property foreclosures.

  * Net charge-offs were $2.16 million for the quarter ended Dec. 31, 2012,
    compared to $6.34 million for the quarter ended Dec. 31, 2011, and $1.94
    million for the third quarter of 2012. Annualized net charge-offs for the
    three and 12 months ended Dec. 31, 2012, were 0.24 percent and 0.29
    percent, respectively.
  * Provision for loan losses expense decreased from $5.44 million for the
    fourth quarter of 2011 to $2.49 million for the fourth quarter of 2012.
    The results reflect a reduction in net charge-offs and a substantial
    improvement in the credit quality of the loan portfolio compared to the
    same period in 2011.
  * The allowance for loan losses represented 1.87 percent of total loans at
    Dec. 31, 2012, compared to 1.96 percent at Sept. 30, 2012, and 2.25
    percent at Dec. 31, 2011. The ratio of the allowance for loan losses to
    nonperforming loans increased to 304.2 percent at Dec. 31, 2012, from
    188.9 percent at Sept. 30, 2012, and 154.6 percent at Dec. 31, 2011.

“Our priority for the last three years has been to aggressively deal with
credit issues,” Turner said. “With the ratio of nonperforming assets to total
loans plus OREO of 1.11 percent and with the steady reduction in troubled
asset inflows, we believe the rehabilitation of our balance sheet is
substantially complete. We can now further intensify our focus and resources
on growing our franchise in Middle and East Tennessee consistent with the
competitive opportunities that exist for us in these two very attractive
banking markets.”

Pinnacle reported nonperforming loan inflows of $5.9 million for the fourth
quarter of 2012 compared to $4.6 million in the third quarter of 2012, as well
as nonperforming asset resolutions of $22.9 million in the fourth quarter of
2012, up from the third quarter of 2012 resolution amount of $12.5 million.
Turner noted that during the fourth quarter of 2012, Pinnacle realized,
through a bankruptcy settlement, a $5.6 million recovery of a loan previously
charged-off in 2009. Concurrently, Pinnacle accelerated its disposition
strategy with respect to certain troubled assets which included a bulk sale of
approximately $9.0 million in nonperforming assets. Turner also noted that
bulk sales are not a typical disposition strategy for Pinnacle, and he does
not expect the firm to adopt bulk sales as a recurring strategy for the future
disposition of troubled assets.

The following is a summary of the activity in various nonperforming asset and
troubled debt restructuring categories for the quarter ended Dec. 31, 2012:

                    Balances     Payments,                                     Balances
(in thousands)                   Sales and       Foreclosures     Inflows     
                    Sept.        Reductions                                    Dec. 31,
                    30, 2012                                                   2012
Troubled debt
restructurings:
Commercial real
estate –            $ 16,631     $ (4,103  )     $   -            $ 7,736      $ 20,264
mortgage
Consumer real
estate –              6,031        (208    )         -              488          6,311
mortgage
Construction
and land              372          (302    )         -              -            70
development
Commercial and        935          (249    )         -              -            686
industrial
Consumer and          121          (2      )         -              -            119
other
Totals                24,090       (4,864  )         -              8,224        27,450
Nonperforming
loans:
Commercial real
estate –              14,983       (8,447  )         -              2,754        9,290
mortgage
Consumer real
estate –              10,548       (5,642  )         (333  )        1,333        5,906
mortgage
Construction
and land              5,857        (1,467  )         (28   )        147          4,509
development
Commercial and        4,896        (3,329  )         -              1,471        3,038
industrial
Consumer and          287          (168    )         (202  )        163          80
other
Totals                36,571       (19,053 )         (563  )        5,868        22,823
Other real
estate:
Residential
construction          7,680        (2,243  )         28             -            5,465
and development
Commercial
construction          9,931        (615    )         -              -            9,316
and development
Other                 4,206        (942    )         535            -            3,799
Totals                21,817       (3,800  )         563            -            18,580
Total
nonperforming
assets and          $ 82,478     $ (27,717 )     $   -            $ 14,092     $ 68,853
troubled debt
restructurings
                                                                                  

OTHER FOURTH QUARTER 2012 HIGHLIGHTS:

  * Improving Balance Sheet Composition

       * Average balances for noninterest-bearing demand and interest checking
         made up 42.9 percent of average total deposits for the quarter ended
         Dec. 31, 2012, up from 35.4 percent for the quarter ended Dec. 31,
         2011. Average core deposits were 88.8 percent of average total
         deposits for the quarter ended Dec. 31, 2012, up from 86.8 percent
         for the quarter ended Dec. 31, 2011.
       * The firm has steadily reduced the size of its investment portfolio by
         $190.1 million since the beginning of 2012. At Dec. 31, 2012,
         securities were just 14.0 percent of total assets, down from 18.4
         percent at Dec. 31, 2011.
       * Total construction and development loans were $313.6 million at Dec.
         31, 2012, down from a peak of $674.4 million or 19.41 percent of
         total loans at March 31, 2009. Total construction and development
         loans represented 8.45 percent of total loans at Dec. 31, 2012,
         compared to 8.87 percent at Sept. 30, 2012, and 8.33 percent at Dec.
         31, 2011.
       * At Dec. 31, 2012, Pinnacle’s ratio of tangible common stockholders’
         equity to tangible assets was 8.97 percent, compared to 9.15 percent
         at Sept. 30, 2012, and 8.44 percent at Dec. 31, 2011.

“We are very pleased with the effort of our relationship managers in the
continued attraction of high quality borrowers,” said Harold R. Carpenter,
Pinnacle’s chief financial officer. “Our loan portfolio has changed
meaningfully over the last three years as we reduced problem assets and our
exposure to residential construction. At the same time, we have been focusing
on growing our commercial and commercial real estate portfolios, which have
long been the primary focus of our firm. Additionally, our funding base has
changed significantly, with core funding comprising 89.9 percent of our
funding base at year-end 2012 compared to 58.7 percent at year-end 2009. All
of this was accomplished by our relationship managers in an environment of
increasing competition from the large regional banks headquartered outside our
markets.”

  * Revenue growth

       * Net interest income for the quarter ended Dec. 31, 2012, was $42.2
         million, compared to $40.9 million in the third quarter of 2012 and
         $39.3 million for the fourth quarter of 2011. Net interest income for
         the fourth quarter of 2012 was at its highest quarterly level since
         the firm’s founding in 2000.
       * Noninterest income for the quarter ended Dec. 31, 2012, was $13.1
         million, compared to $10.4 million for the third quarter of 2012 and
         $9.7 million for the same quarter last year. Excluding securities
         gains, noninterest income was up 6.11 percent on a linked-quarter
         basis and at its highest quarterly level since the firm’s founding.

            * Gains on mortgage loans sold, net of commissions, were $1.77
              million during the fourth quarter of 2012, compared to $1.98
              million during the third quarter of 2012 and $1.46 million
              during the fourth quarter of 2011.

“We grew top line revenues by 8.9 percent in 2012,” Carpenter said. “The
revenue growth was largely based on incremental loan volumes and reduced
funding costs. We believe net loan growth will be the primary contributor to
our revenue growth objectives for 2013. As for fee revenues, we also
anticipate decreased mortgage revenues in 2013 given the substantial refinance
activity that has already occurred. To offset these headwinds, our
relationship managers are focused on continuing our rapid balance sheet growth
and seeking new fee opportunities with our clients.”

  * Noninterest and income tax expense

       * Noninterest expense for the quarter ended Dec. 31, 2012, was $34.9
         million, compared to $33.6 million in the third quarter of 2012 and
         $34.4 million in the fourth quarter of 2011.

            * Salaries and employee benefits costs increased by 0.44 percent
              from the third quarter of 2012 and 3.13 percent from the same
              period last year.
            * Included in noninterest expense for the fourth quarter of 2012
              was $1.36 million in other real estate expenses, compared to
              $2.40 million in the third quarter of 2012 and $4.19 million in
              the fourth quarter of 2011.
            * During the fourth quarter of 2012, the firm prepaid $60 million
              of FHLB advances from current liquidity and, therefore, incurred
              $2.1 million in prepayment penalties that were included in
              fourth quarter 2012 noninterest expense. These FHLB advances had
              an annual effective rate of 1.91 percent.

       * Income tax expense was $6.28 million for the fourth quarter of 2012,
         compared to $1.45 million in the fourth quarter of 2011 and $5.02
         million in the third quarter of 2012. The firm ended the year with an
         effective tax rate of approximately 33.0 percent for 2012 compared to
         the substantial tax benefit last year attributable to the recapture
         of the valuation allowance for the firm’s deferred tax assets.

Noninterest expense excluding the impact of OREO expenses was approximately
$33.5 million in the fourth quarter of 2012, compared to $31.2 million in the
third quarter of 2012 and $30.2 million in the fourth quarter of 2011.

WEBCAST AND CONFERENCE CALL INFORMATION

Pinnacle will host a webcast and conference call at 8:30 a.m. (CST) on Jan.
16, 2013, to discuss fourth quarter 2012 results and other matters. To access
the call for audio only, please call 1-877-602-7944. For the presentation and
streaming audio, please access the webcast on the investor relations page of
Pinnacle’s website at www.pnfp.com.

For those unable to participate in the webcast, it will be archived on the
investor relations page of Pinnacle’s website at www.pnfp.com for 90 days
following the presentation.

Pinnacle Financial Partners provides a full range of banking, investment,
mortgage and insurance products and services designed for small- to mid-sized
businesses and their owners and individuals interested in a comprehensive
relationship with their financial institution. Comprehensive wealth management
services, such as financial planning and trust, help clients increase, protect
and distribute their assets.

The firm began operations in a single downtown Nashville location in Oct. 2000
and has since grown to over $5.0 billion in assets at Dec. 31, 2012. At Dec.
31, 2012, Pinnacle is the second-largest bank holding company headquartered in
Tennessee, with 29 offices in eight Middle Tennessee counties and three
offices in Knoxville.

Additional information concerning Pinnacle can be accessed at www.pnfp.com.

Certain of the statements in this release may constitute forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
The words “expect,” “anticipate,” “goal,” “objective,” “intend,” “plan,”
“believe,” “should,” “seek,” “estimate” and similar expressions are intended
to identify such forward-looking statements, but other statements not based on
historical information may also be considered forward-looking. All
forward-looking statements are subject to risks, uncertainties and other
factors that may cause the actual results, performance or achievements of
Pinnacle Financial to differ materially from any results expressed or implied
by such forward-looking statements. Such risks include, without limitation,
(i) deterioration in the financial condition of borrowers resulting in
significant increases in loan losses and provisions for those losses; (ii)
continuation of the historically low short-term interest rate environment;
(iii) the inability of Pinnacle Financial to grow its loan portfolio in the
Nashville-Davidson-Murfreesboro-Franklin MSA and the Knoxville MSA; (iv)
changes in loan underwriting, credit review or loss reserve policies
associated with economic conditions, examination conclusions, or regulatory
developments; (v) effectiveness of Pinnacle Financial’s asset management
activities in improving, resolving or liquidating lower-quality assets; (vi)
increased competition with other financial institutions; (vii) greater than
anticipated adverse conditions in the national or local economies including
the Nashville-Davidson-Murfreesboro-Franklin MSA and the Knoxville MSA,
particularly in commercial and residential real estate markets; (viii) rapid
fluctuations or unanticipated changes in interest rates; (ix) the results of
regulatory examinations; (x) the ability to retain large, uninsured deposits
with the expiration of the FDIC’s transaction account guarantee program (xi)
the development of any new market other than Nashville or Knoxville; (xii) a
merger or acquisition; (xiii) any matter that would cause Pinnacle Financial
to conclude that there was impairment of any asset, including intangible
assets; (xiv) the ability to attract additional financial advisors or to
attract customers from other financial institutions; (xv) further
deterioration in the valuation of other real estate owned and increased
expenses associated therewith; (xvi) inability to comply with regulatory
capital requirements, including those resulting from currently proposed
changes to capital calculation methodologies and required capital maintenance
levels; and, (xvii) changes in state and federal legislation, regulations or
policies applicable to banks and other financial service providers, including
regulatory or legislative developments arising out of current unsettled
conditions in the economy, including implementation of the Dodd-Frank Wall
Street Reform and Consumer Protection Act. A more detailed description of
these and other risks is contained in Pinnacle Financial’s most recent annual
report on Form 10-K filed with the Securities and Exchange Commission on March
2, 2012. Many of such factors are beyond Pinnacle Financial’s ability to
control or predict, and readers are cautioned not to put undue reliance on
such forward-looking statements. Pinnacle Financial disclaims any obligation
to update or revise any forward-looking statements contained in this release,
whether as a result of new information, future events or otherwise.

 
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS – UNAUDITED
                                                            
                                       December 31, 2012     December 31, 2011
ASSETS
Cash and noninterest-bearing due       $ 51,946,542          $ 63,015,997
from banks
Interest-bearing due from banks          111,535,083           108,422,470
Federal funds sold and other             1,807,044             724,573        
Cash and cash equivalents                165,288,669           172,163,040
                                                              
Securities available-for-sale, at        706,577,806           894,962,246
fair value
Securities held-to-maturity (fair
value of $583,212 and $2,369,118
at
December 31, 2012 and December 31,       574,863               2,329,917
2011, respectively)
Mortgage loans held-for-sale             41,194,639            35,363,038
                                                              
Loans                                    3,712,162,430         3,291,350,857
Less allowance for loan losses           (69,417,437   )       (73,974,675   )
Loans, net                               3,642,744,993         3,217,376,182
                                                              
Premises and equipment, net              75,804,895            77,127,361
Other investments                        26,962,890            44,653,840
Accrued interest receivable              14,856,615            15,243,366
Goodwill                                 244,040,421           244,076,492
Core deposit and other intangible        5,103,273             7,842,267
assets
Other real estate owned                  18,580,097            39,714,415
Other assets                             98,819,455            113,098,540    
Total assets                           $ 5,040,548,616       $ 4,863,950,704  
                                                              
LIABILITIES AND STOCKHOLDERS’
EQUITY
Deposits:
Noninterest-bearing                    $ 985,689,460         $ 717,378,933
Interest-bearing                         760,786,247           637,203,420
Savings and money market accounts        1,662,256,403         1,585,260,139
Time                                     606,455,873           714,496,974    
Total deposits                           4,015,187,983         3,654,339,466
Securities sold under agreements         114,667,475           131,591,412
to repurchase
Federal Home Loan Bank advances          75,850,390            226,068,796
Subordinated debt and other              106,158,292           97,476,000
borrowings
Accrued interest payable                 1,360,598             2,233,330
Other liabilities                        48,252,519            42,097,132     
Total liabilities                        4,361,477,257         4,153,806,136
                                                              
Stockholders’ equity:
Preferred stock, no par value;
10,000,000 shares authorized;            -                     69,096,828
71,250 shares issued and
outstanding at December 31, 2011
Common stock, par value $1.00;
90,000,000 shares authorized;
34,696,597 shares and 34,354,960         34,696,597            34,354,960
shares issued and outstanding at
December 31, 2012 and 2011,
respectively
Common stock warrants                    -                     3,348,402
Additional paid-in capital               543,760,439           536,227,537
Retained earnings                        87,386,689            49,783,584
Accumulated other comprehensive          13,227,634            17,333,257     
income, net of taxes
Stockholders’ equity                     679,071,359           710,144,568    
Total liabilities and                  $ 5,040,548,616       $ 4,863,950,704  
stockholders’ equity
                                                              
This information is preliminary and based on company data available at the
time of the presentation.
 

 
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED
                                                                    
                 Three Months Ended                Twelve Months Ended
                 December 31                       December 31
                 2012             2011             2012              2011
Interest
income:
Loans,
including        $ 41,705,546     $ 38,917,962     $ 160,036,709     $ 154,748,491
fees
Securities
Taxable            3,574,460        5,179,009        16,931,417        23,971,787
Tax-exempt         1,604,162        1,800,793        6,576,701         7,394,134
Federal
funds sold         318,900          548,047          1,876,731         2,232,423    
and other
Total
interest           47,203,068       46,445,811       185,421,558       188,346,835  
income
                                                                      
Interest
expense:
Deposits           3,730,199        5,718,988        16,842,852        30,588,033
Securities
sold under
agreements         85,094           178,958          455,499           1,110,078
to
repurchase
Federal Home
Loan Bank
advances and       1,144,741        1,255,194        5,258,749         5,184,313    
other
borrowings
Total
interest           4,960,034        7,153,140        22,557,100        36,882,424   
expense
Net interest       42,243,034       39,292,671       162,864,458       151,464,411
income
Provision
for loan           2,487,938        5,438,846        5,568,830         21,797,613   
losses
Net interest
income after
provision          39,755,096       33,853,825       157,295,628       129,666,798
for loan
losses
                                                                      
Noninterest
income:
Service
charges on         2,622,709        2,290,699        9,917,754         9,244,165
deposit
accounts
Investment         2,050,708        1,402,016        6,984,970         6,246,414
services
Insurance
sales              1,045,459        943,959          4,461,404         3,999,153
commissions
Gain on
mortgage           1,768,428        1,461,224        6,698,618         4,155,137
loans sold,
net
Gain on sale
of
investment         1,987,872        133,055          2,150,605         960,763
securities,
net
Trust fees         863,234          746,257          3,195,950         2,999,731
Other
noninterest        2,769,456        2,749,616        9,987,335         10,334,847   
income
Total
noninterest        13,107,866       9,726,826        43,396,636        37,940,210   
income
                                                                      
Noninterest
expense:
Salaries and
employee           19,556,285       18,962,481       78,056,564        74,424,851
benefits
Equipment
and                5,202,436        4,977,335        20,420,333        19,986,976
occupancy
Other real
estate             1,364,495        4,193,073        11,544,067        17,431,926
expense
Marketing
and other          1,276,050        1,031,884        3,635,810         3,303,151
business
development
Postage and        562,805          576,469          2,379,730         2,120,722
supplies
Amortization
of                 683,430          715,514          2,738,994         2,862,837
intangibles
Other
noninterest        6,205,765        3,917,180        19,389,368        18,976,865   
expense
Total
noninterest        34,851,266       34,373,936       138,164,866       139,107,328  
expense
Income
before             18,011,696       9,206,715        62,527,398        28,499,680
income taxes
Income tax
expense            6,281,538        1,446,918        20,643,517        (15,237,687 )
(benefit)
Net income         11,730,158       7,759,797        41,883,881        43,737,367
Preferred          -                1,004,410        1,660,868         4,606,493
dividends
Accretion on
preferred          -                1,074,698        2,153,172         2,058,146    
stock
discount
Net income
available to     $ 11,730,158     $ 5,680,689      $ 38,069,841      $ 37,072,728   
common
stockholders
                                                                      
Per share
information:
Basic net
income per
common share     $ 0.35           $ 0.17           $ 1.12            $ 1.11         
available to
common
stockholders
Diluted net
income per
common share     $ 0.34           $ 0.17           $ 1.10            $ 1.09         
available to
common
stockholders
                                                                      
Weighted
average
shares
outstanding:
Basic              33,960,664       33,485,253       33,899,667        33,420,015
Diluted            34,527,479       34,127,209       34,487,808        34,060,228
                                                                      
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
                                                                                                         
 
                        December          September       June            March           December        September
(dollars in             2012              2012            2012            2012            2011            2011
thousands)
                                                                                                           
Balance sheet data,
at quarter end:
Commercial real
estate - mortgage       $ 1,178,196       1,167,136       1,167,068       1,123,690       1,110,962       1,087,333
loans
Consumer real
estate - mortgage         679,927         680,890         687,002         688,817         695,745         711,994
loans
Construction and
land development          313,552         312,788         289,061         281,624         274,248         278,660
loans
Commercial and            1,446,577       1,279,050       1,227,275       1,180,578       1,145,735       1,095,037
industrial loans
Consumer and other        93,910          85,300          74,277          63,160          64,661          68,125
Total loans               3,712,162       3,525,164       3,444,683       3,337,869       3,291,351       3,241,149
Allowance for loan        (69,417   )     (69,092   )     (69,614   )     (71,379   )     (73,975   )     (74,871   )
losses
Securities                707,153         739,280         790,493         839,769         897,292         942,752
Total assets              5,040,549       4,871,386       4,931,878       4,789,583       4,863,951       4,868,905
Noninterest-bearing       985,689         844,480         806,402         756,909         717,379         722,694
deposits
Total deposits            4,015,188       3,719,287       3,709,820       3,605,291       3,654,339       3,712,650
Securities sold
under agreements to       114,667         134,787         127,623         118,089         131,591         128,954
repurchase
FHLB advances             75,850          190,887         270,995         226,032         226,069         161,106
Subordinated debt
and other                 106,158         106,783         122,476         97,476          97,476          97,476
borrowings
Total stockholders’       679,071         672,824         659,287         718,665         710,145         724,374
equity
                                                                                                           
Balance sheet data,
quarterly averages:
Total loans             $ 3,580,056       3,488,736       3,402,671       3,280,030       3,261,972       3,207,213
Securities                719,861         766,547         818,795         875,509         924,153         939,778
Total earning             4,493,216       4,379,742       4,365,715       4,316,973       4,347,352       4,308,710
assets
Total assets              4,964,521       4,860,394       4,847,583       4,820,951       4,852,311       4,786,485
Noninterest-bearing       978,366         799,508         755,594         701,760         705,580         671,796
deposits
Total deposits            3,883,423       3,705,672       3,636,240       3,597,271       3,641,845       3,699,553
Securities sold
under agreements to       142,333         136,918         130,711         129,892         141,818         145,050
repurchase
FHLB advances             124,781         214,271         232,606         238,578         209,619         111,699
Subordinated debt
and other                 108,489         112,406         101,872         97,476          97,476          97,476
borrowings
Total stockholders’       680,383         669,673         718,841         719,788         729,622         708,973
equity
                                                                                                           
Statement of
operations data,
for the three
months ended:
Interest income         $ 47,203          46,441          45,953          45,824          46,446          46,888
Interest expense          4,960           5,509           5,768           6,320           7,153           8,532      
Net interest income       42,243          40,932          40,185          39,504          39,293          38,356
Provision for loan        2,488           1,413           634             1,034           5,439           3,632      
losses
Net interest income
after provision for       39,755          39,519          39,551          38,470          33,854          34,724
loan losses
Noninterest income        13,108          10,430          9,910           9,949           9,727           10,080
Noninterest expense       34,851          33,578          33,916          35,820          34,374          35,676     
Income before taxes       18,012          16,371          15,545          12,599          9,207           9,128
Income tax expense        6,282           5,022           5,106           4,234           1,447           (16,973   )
(benefit)
Preferred dividends       -               -               2,655           1,159           2,079           1,564      
and accretion
Net income
available to common     $ 11,730          11,349          7,785           7,206           5,681           24,537     
stockholders
                                                                                                           
Profitability and
other ratios:
Return on avg.            0.94      %     0.93      %     0.65      %     0.60      %     0.46      %     2.06      %
assets (1)
Return on avg.            6.86      %     6.74      %     4.36      %     4.03      %     3.09      %     13.88     %
equity (1)
Return on avg.            10.85     %     10.76     %     7.58      %     6.13      %     4.93      %     20.69     %
tangible equity (1)
Net interest margin       3.80      %     3.78      %     3.76      %     3.74      %     3.65      %     3.60      %
(1) (2)
Noninterest income
to total revenue          23.68     %     20.31     %     19.78     %     20.12     %     19.84     %     20.81     %
(3)
Noninterest income        1.05      %     0.85      %     0.82      %     0.83      %     0.80      %     0.84      %
to avg. assets (1)
Noninterest exp. to       2.79      %     2.75      %     2.81      %     2.99      %     2.81      %     2.99      %
avg. assets (1)
Noninterest expense
(excluding ORE and
FHLB prepayment           2.52      %     2.55      %     2.56      %     2.60      %     2.50      %     2.57      %
charges) to avg.
assets (1)
Efficiency ratio          62.96     %     65.38     %     67.70     %     72.43     %     70.12     %     73.66     %
(4)
Avg. loans to             92.19     %     94.15     %     93.58     %     91.18     %     89.57     %     86.69     %
average deposits
Securities to total       14.03     %     15.18     %     16.03     %     17.53     %     18.45     %     19.36     %
assets
                                                                                                           
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
                                                                                            
                        Three months ended                      Three months ended
(dollars in             December 31, 2012                       December 31, 2011
thousands)
                        Average         Interest     Rates/     Average         Interest     Rates/
                        Balances                     Yields     Balances                     Yields
Interest-earning
assets
Loans ^ (1)             $ 3,580,056     $ 41,706     4.64 %     $ 3,261,972     $ 38,918     4.74 %
Securities
Taxable                   541,678         3,574      2.63 %       733,871         5,179      2.80 %
Tax-exempt ^ (2)          178,183         1,604      4.78 %       190,282         1,801      5.01 %
Federal funds sold        193,299         319        0.77 %       161,227         548        1.45 %
and other
Total
interest-earning          4,493,216     $ 47,203     4.24 %       4,347,352     $ 46,446     4.30 %
assets
Nonearning assets
Intangible assets         249,574                                 252,368
Other nonearning          221,731                                 252,591
assets
Total assets            $ 4,964,521                             $ 4,852,311
                                                                                              
Interest-bearing
liabilities
Interest-bearing
deposits:
Interest checking       $ 688,196       $ 558        0.32 %     $ 584,342       $ 757        0.51 %
Savings and money         1,611,639       1,816      0.45 %       1,592,704       2,624      0.65 %
market
Time                      605,222         1,356      0.89 %       759,219         2,338      1.22 %
Total
interest-bearing          2,905,057       3,730      0.51 %       2,936,265       5,719      0.77 %
deposits
Securities sold
under agreements to       142,333         85         0.24 %       141,818         179        0.50 %
repurchase
Federal Home Loan         124,781         390        1.24 %       209,619         566        1.07 %
Bank advances
Subordinated debt
and other                 108,489         755        2.77 %       97,476          689        2.80 %
borrowings
Total
interest-bearing          3,280,660       4,960      0.60 %       3,385,178       7,153      0.84 %
liabilities
Noninterest-bearing       978,366         -          -            705,580         -          -     
deposits
Total deposits and
interest-bearing          4,259,026     $ 4,960      0.46 %       4,090,758     $ 7,153      0.69 %
liabilities
Other liabilities         25,112                                  31,931
Stockholders’             680,383                                 729,622
equity
Total liabilities
and stockholders’       $ 4,964,521                             $ 4,852,311
equity
Net interest income                     $ 42,243                                $ 39,293
Net interest spread                                  3.64 %                                  3.46 %
^(3)
Net interest margin                                  3.80 %                                  3.65 %
^(4)
                                                                                              
                                                                                              
 
(1) Average balances of nonperforming loans are included in the above amounts.
(2) Yields computed on tax-exempt instruments on a tax equivalent basis.
(3) Yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities.
The net interest spread calculation excludes the impact of demand deposits. Had the impact of
demand deposits been included, the net interest spread for the quarter ended December 31, 2012
would have been 3.78% compared to a net interest spread of 3.61% for the quarter ended December 31,
2011.
(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
                                                                                              
                        Twelve months ended                      Twelve months ended
(dollars in             December 31, 2012                        December 31, 2011
thousands)
                        Average         Interest      Rates/     Average         Interest      Rates/
                        Balances                      Yields     Balances                      Yields
Interest-earning
assets
Loans ^ (1)             $ 3,438,401     $ 160,037     4.66 %     $ 3,218,123     $ 154,749     4.82 %
Securities
Taxable                   612,677         16,931      2.76 %       768,063         23,972      3.12 %
Tax-exempt ^ (2)          182,217         6,577       4.82 %       193,397         7,394       5.10 %
Federal funds sold        155,876         1,877       1.33 %       167,932         2,232       1.43 %
and other
Total
interest-earning          4,389,171     $ 185,422     4.29 %       4,347,515     $ 188,347     4.40 %
assets
Nonearning assets
Intangible assets         250,619                                  253,443
Other nonearning          233,764                                  232,477
assets
Total assets            $ 4,873,554                              $ 4,833,435
                                                                                                
Interest-bearing
liabilities
Interest-bearing
deposits:
Interest checking       $ 677,632       $ 2,800       0.41 %     $ 583,212       $ 3,522       0.60 %
Savings and money         1,575,174       7,884       0.50 %       1,597,965       13,773      0.86 %
market
Time                      644,039         6,158       0.96 %       876,864         13,293      1.52 %
Total
interest-bearing          2,896,845       16,842      0.58 %       3,058,041       30,588      1.00 %
deposits
Securities sold
under agreements to       134,989         455         0.34 %       161,845         1,110       0.69 %
repurchase
Federal Home Loan         202,338         2,237       1.11 %       136,741         2,512       1.84 %
Bank advances
Subordinated debt
and other                 105,131         3,024       2.87 %       98,201          2,672       2.73 %
borrowings
Total
interest-bearing          3,339,303       22,558      0.68 %       3,454,828       36,882      1.07 %
liabilities
Noninterest-bearing       809,268         -           -            650,602         -           -     
deposits
Total deposits and
interest-bearing          4,148,571     $ 22,558      0.54 %       4,105,430     $ 36,882      0.90 %
liabilities
Other liabilities         27,933                                   24,752
Stockholders’             697,050                                  703,253
equity
Total liabilities
and stockholders’       $ 4,873,554                              $ 4,833,435
equity
Net interest income                     $ 162,864                                $ 151,465
Net interest spread                                   3.61 %                                   3.33 %
^(3)
Net interest margin                                   3.77 %                                   3.55 %
^ (4)
                                                                                                
                                                                                                
 
(1) Average balances of nonperforming loans are included in the above amounts.
(2) Yields computed on tax-exempt instruments on a tax equivalent basis.
(3) Yields realized on interest-earning 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 twelve months ended December 31, 2012 would
have been 3.74% compared to a net interest spread of 3.50% for the twelve months ended December 31,
2011.
(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
                                                                                        
 
                     December       September     June         March        December     September
(dollars in          2012           2012          2012         2012         2011         2011
thousands)
                                                                                          
Asset quality
information and
ratios:
Nonperforming
assets:
Nonaccrual loans     $ 22,823       36,571        40,821       42,852       47,855       54,640
Other real             18,580       21,817        25,450       34,019       39,714       45,500   
estate (ORE)
Total
nonperforming        $ 41,403       58,388        66,271       76,871       87,569       100,140  
assets
Past due loans
over 90 days and     $ -            162           -            821          858          1,911
still accruing
interest
Troubled debt
restructurings       $ 27,450       24,090        26,626       22,832       23,416       18,187
(5)
                                                                                          
Net loan             $ 2,163        1,935         2,399        3,630        6,335        5,732
charge-offs
Allowance for
loan losses to         304.2  %     188.9   %     170.5  %     166.6  %     154.6  %     137.0   %
nonperforming
loans
As a percentage
of total loans:
Past due
accruing loans         0.29   %     0.35    %     0.21   %     0.34   %     0.36   %     0.28    %
over 30 days
Potential
problem loans          2.84   %     3.13    %     3.49   %     3.78   %     4.12   %     4.09    %
(6)
Allowance for          1.87   %     1.96    %     2.02   %     2.14   %     2.25   %     2.31    %
loan losses
Nonperforming
assets to total        1.11   %     1.65    %     1.91   %     2.28   %     2.66   %     3.05    %
loans and ORE
Nonperforming
assets to total        0.82   %     1.20    %     1.34   %     1.60   %     1.80   %     2.06    %
assets
Annualized net
loan charge-offs
to year-to-date        0.29   %     0.31    %     0.36   %     0.45   %     0.94   %     1.00    %
to avg. loans
(7)
Avg. commercial
loan internal          4.5          4.6           4.6          4.7          4.6          4.7
risk ratings (6)
                                                                                          
Interest rates
and yields:
Loans                  4.64   %     4.62    %     4.65   %     4.74   %     4.74   %     4.78    %
Securities             3.16   %     3.19    %     3.27   %     3.31   %     3.26   %     3.54    %
Total earning          4.24   %     4.28    %     4.29   %     4.33   %     4.30   %     4.38    %
assets
Total deposits,
including              0.38   %     0.43    %     0.47   %     0.63   %     0.62   %     0.77    %
non-interest
bearing
Securities sold
under agreements       0.24   %     0.29    %     0.36   %     0.48   %     0.50   %     0.56    %
to repurchase
FHLB advances          1.24   %     1.15    %     1.07   %     1.03   %     1.07   %     1.89    %
Subordinated
debt and other         2.77   %     2.84    %     2.91   %     3.00   %     2.80   %     2.68    %
borrowings
Total deposits
and                    0.46   %     0.53    %     0.57   %     0.63   %     0.69   %     0.84    %
interest-bearing
liabilities
                                                                                          
Pinnacle
Financial
Partners capital
ratios (8):
Stockholders’
equity to total        13.5   %     13.8    %     13.4   %     15.0   %     14.6   %     14.9    %
assets
Leverage               10.6   %     10.5    %     10.3   %     11.7   %     11.4   %     11.9    %
Tier one               11.8   %     12.1    %     12.0   %     14.0   %     13.8   %     14.4    %
risk-based
Total risk-based       13.0   %     13.4    %     13.5   %     15.4   %     15.3   %     15.9    %
Tier one common
equity to risk         9.9    %     10.1    %     10.0   %     10.1   %     9.9    %     9.8     %
weighted assets
Tangible common
equity to              9.0    %     9.2     %     8.7    %     8.8    %     8.4    %     8.2     %
tangible assets
Pinnacle Bank
ratios:
Classified Asset       29.4   %     33.4    %     37.8   %     39.3   %     44.4   %     46.8    %
Ratio
Leverage               10.5   %     10.5    %     10.4   %     10.6   %     10.3   %     10.2    %
Tier one               11.6   %     12.0    %     12.0   %     12.6   %     12.5   %     12.3    %
risk-based
Total risk-based       12.9   %     13.3    %     13.3   %     14.1   %     14.0   %     13.8    %
                                                                                          
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
 
 
                   December           September        June             March            December         September
(dollars in
thousands,         2012               2012             2012             2012             2011             2011
except per
share data)
                                                                                                           
Per share
data:
Earnings –         $ 0.35             0.33             0.23             0.21             0.17             0.74
basic
Earnings –         $ 0.34             0.33             0.23             0.21             0.17             0.72
diluted
Book value per
common share       $ 19.57            19.39            18.92            18.66            18.56            18.34
at quarter end
(9)
Tangible
common equity      $ 12.39            12.19            11.79            11.50            11.33            11.08
per common
share
                                                                                                           
Weighted avg.
common shares        33,960,664       33,939,248       33,885,779       33,811,871       33,485,253       33,372,980
– basic
Weighted avg.
common shares        34,527,479       34,523,076       34,470,794       34,423,898       34,127,209       33,993,914
– diluted
Common shares        34,696,597       34,691,659       34,675,913       34,616,013       34,354,960       34,306,927
outstanding
                                                                                                           
Investor
information:
Closing sales      $ 18.84            19.32            19.51            18.35            16.15            10.94
price
High closing
sales price        $ 20.60            20.38            19.51            18.44            16.65            16.21
during quarter
Low closing
sales price        $ 18.05            18.88            16.64            15.25            10.28            10.52
during quarter
                                                                                                           
Other
information:
Gains on
mortgage loans
sold:
Mortgage loan
sales:
Gross loans        $ 132,485          130,277          105,486          119,426          134,842          104,663
sold
Gross fees         $ 3,269            3,193            2,511            2,608            2,766            2,166
(10)
Gross fees as
a percentage
of mortgage          2.47       %     2.45       %     2.38       %     2.18       %     2.05       %     2.07       %
loans
originated
Gains (losses)
on sales of
investment         $ 1,988            (50        )     99               114              133              377
securities,
net of OTTI
Brokerage
account
assets, at         $ 1,242,379        1,244,100        1,191,259        1,176,180        1,061,249        987,908
quarter-end
(11)
Trust account
assets, at         $ 819,270          761,641          803,904          789,614          632,608          607,668
quarter-end
Balance of
commercial
loan
participations
sold to other      $ 39,668           40,662           54,598           52,155           62,209           57,045
banks and
serviced by
Pinnacle, at
quarter end
Core deposits      $ 3,875,745        3,576,425        3,523,542        3,405,915        3,441,547        3,388,692
(12)
Core deposits
to total             89.9       %     86.1       %     83.3       %     84.3       %     83.7       %     82.6       %
funding (12)
Risk-weighted      $ 4,247,744        4,033,407        3,992,473        3,826,678        3,780,412        3,751,479
assets
Total assets
per full-time      $ 6,900            6,715            6,724            6,442            6,511            6,580
equivalent
employee
Annualized
revenues per
full-time          $ 301.4            281.6            273.9            266.8            263.2            262.5
equivalent
employee
Number of
employees            730.5            725.5            733.5            743.5            747.0            740.0
(full-time
equivalent)
Associate
retention rate       93.2       %     93.4       %     94.0       %     93.7       %     92.0       %     92.6       %
(13)
                                                                                                           
Selected
economic
information
(in thousands)
(14):
Nashville MSA
nonfarm              759.2            757.6            764.7            747.8            757.3            735.5
employment -
November 2012
Knoxville MSA
nonfarm              337.2            337.3            338.9            330.9            331.7            327.7
employment -
November 2012
Nashville MSA
unemployment -       5.9        %     7.1        %     6.8        %     7.2        %     7.2        %     8.5        %
November 2012
Knoxville MSA
unemployment -       5.7        %     6.8        %     6.4        %     6.7        %     6.6        %     7.9        %
November 2012
Nashville
residential
median home        $ 181.0            177.1            175.5            168.5            168.5            171.6
price-
December 2012
Nashville
inventory of
residential          9.1              11.0             11.8             11.8             10.6             13.4
homes for
sale- December
2012 (16)
 
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
 
                  December          September         June              March             December          September
(dollars in
thousands,        2012              2012              2012              2012              2011              2011
except per
share data)
                                                                                                             
Tangible
assets:
Total assets      $ 5,040,549       $ 4,871,386       $ 4,931,878       $ 4,789,583       $ 4,863,951       $ 4,868,905
Less:               (244,040  )       (244,045  )       (244,065  )       (244,072  )       (244,076  )       (244,082  )
Goodwill
Core deposit
and other           (5,103    )       (5,787    )       (6,470    )       (7,156    )       (7,842    )       (8,558    )
intangible
assets
Net tangible      $ 4,791,406       $ 4,621,554       $ 4,681,343       $ 4,538,355       $ 4,612,033       $ 4,616,265  
assets
                                                                                                             
Tangible
equity:
Total
stockholders’     $ 679,071         $ 672,824         $ 659,287         $ 718,665         $ 710,145         $ 724,374
equity
Less:               (244,040  )       (244,045  )       (244,065  )       (244,072  )       (244,076  )       (244,082  )
Goodwill
Core deposit
and other           (5,103    )       (5,787    )       (6,470    )       (7,156    )       (7,842    )       (8,558    )
intangible
assets
Net tangible        429,928           422,992           408,752           467,437           458,226           471,734
equity
Less:
Preferred           -                 -                 -                 (69,355   )       (69,097   )       (91,772   )
stock
Net tangible      $ 429,928         $ 422,992         $ 408,752         $ 398,082         $ 389,130         $ 379,962    
common equity
                                                                                                             
Ratio of
tangible
common equity       8.97      %       9.15      %       8.73      %       8.77      %       8.44      %       8.23      %
to tangible
assets
                                                                                                             
                                                                                                             
                  For the three months ended
                  December          September         June              March             December          September
                  2012              2012              2012              2012              2011              2011
                                                                                                             
Net interest      $ 42,243          $ 40,932          $ 40,185          $ 39,504          $ 39,293          $ 38,356
income
                                                                                                             
Noninterest         13,108            10,430            9,910             9,949             9,727             10,080
income
Less: Net
gains
(losses) on         1,988             (50       )       99                114               133               377        
sale of
investment
securities
Noninterest
income
excluding the
impact of
other net           11,120            10,480            9,811             9,835             9,594             9,703      
gains
(losses) on
sale of
investment
securities
                                                                                                             
Noninterest         34,851            33,578            33,915            35,820            34,374            35,676
expense
Other real
estate owned        1,365             2,399             3,104             4,676             4,193             5,079
expense
FHLB
restructuring       2,092             -                 -                 -                 -                 -          
charges
Noninterest
expense
excluding the
impact of
other real          31,394            31,179            30,811            31,144            30,181            30,597     
estate owned
expense and
FHLB
restructuring
charges
                                                                                                             
Adjusted
pre-tax           $ 21,969          $ 20,233          $ 19,185          $ 18,195          $ 18,706          $ 17,462     
pre-provision
income ^(15)
                                                                                                             
                                                                                                             
Efficiency          63.0      %       65.4      %       67.7      %       72.4      %       70.1      %       73.7      %
Ratio ^ (4)
                                                                                                             
Efficiency
Ratio
excluding the
gain or loss
on sale of
investment
securities,         58.8      %       60.6      %       61.6      %       63.1      %       61.7      %       63.7      %
the impact of
other real
estate owned
expense and
FHLB
restructuring
charges^(4)
                                                                                                             
                                                                                                             
Noninterest       $ 34,851          $ 33,578          $ 33,915          $ 35,820          $ 34,374          $ 35,676
expense
Other real
estate owned        1,365             2,399             3,104             4,676             4,193             5,079
expense
FHLB
restructuring       2,092             -                 -                 -                 -                 -          
charges
Noninterest
expense
excluding the
impact of
other real          31,394            31,179            30,811            31,144            30,181            30,597     
estate owned
expense and
FHLB
restructuring
charges
                                                                                                             
Total average     $ 4,964,521       $ 4,860,394       $ 4,847,583       $ 4,820,951       $ 4,852,311       $ 4,786,485  
assets
                                                                                                             
Noninterest
expense
(excluding
ORE and FHLB        2.52      %       2.55      %       2.56      %       2.60      %       2.50      %       2.57      %
restructuring
charges) to
avg. assets
^(1)
 
                                                                                          For the twelve
                                                                                          months ended
                                                                                          December 31,
                                                                                          2012              2011
 
Net income available to common stockholders                                               $ 38,070          $ 37,073
Reversal of valuation allowance based on net deferred tax assets                            -                 (22,480   )
Accelerated accretion on preferred stock discount                                           1,664             141        
                                                                                          $ 39,734          $ 14,734     
 
Diluted net income per common share available to common stockholders, as adjusted         $ 1.15            $ 0.43       
 
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.
      Troubled debt restructurings include loans where the company, as a
      result of the borrower’s financial difficulties, has granted a credit
5.    concession to the borrower (i.e., interest only payments for a
      significant period of time, extending the maturity of the loan, etc.).
      All of these loans continue to accrue interest at the contractual rate.
      Average risk ratings are based on an internal loan review system which
      assigns a numeric value of 1 to 10 to all loans to commercial entities
      based on their underlying risk characteristics as of the end of each
      quarter. A “1” risk rating is assigned to credits that exhibit Excellent
      risk characteristics, “2” exhibit Very Good risk characteristics, “3”
6.    Good, “4” Satisfactory, “5” Acceptable or Average, “6” Watch List, “7”
      Criticized, “8” Classified or Substandard, “9” Doubtful and “10” Loss
      (which are charged-off immediately). Additionally, loans rated “8” or
      worse that are not nonperforming or restructured loans are considered
      potential problem loans. Generally, consumer loans are not subjected to
      internal risk ratings.
      Annualized net loan charge-offs to average loans ratios are computed by
7.    annualizing year-to-date net loan charge-offs and dividing the result by
      average loans for the year-to-date period.
8.    Capital ratios are defined as follows:
      Equity to total assets – End of period total stockholders’ equity as a
      percentage of end of period assets.
      Tangible common equity to total assets - End of period total
      stockholders’ equity less end of period goodwill, core deposit and other
      intangibles as a percentage of end of period assets.
      Leverage – Tier one capital (pursuant to risk-based capital guidelines)
      as a percentage of adjusted average assets.
      Tier one risk-based – Tier one capital (pursuant to risk-based capital
      guidelines) as a percentage of total risk-weighted assets.
      Total risk-based – Total capital (pursuant to risk-based capital
      guidelines) as a percentage of total risk-weighted assets.
      Classified asset – Classified assets as a percentage of Tier 1 Capital
      plus allowance for loan losses.
      Book value per share computed by dividing total stockholders’ equity
9.    less preferred stock and common stock warrants by common shares
      outstanding.
10.   Amounts are included in the statement of operations in “Gains on loans
      sold, net”, net of commissions paid on such amounts.
11.   At fair value, based on information obtained from Pinnacle’s third party
      broker/dealer for non-FDIC insured financial products and services.
      Core deposits include all transaction deposit accounts, money market and
      savings accounts and all certificates of deposit issued in a
12.   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.
      Associate retention rate is computed by dividing the number of
13.   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.
      Employment and unemployment data is from the US Dept. of Labor Bureau of
      Labor Statistics. Labor force data is not seasonally adjusted. The most
14.   recent quarter data presented is as of the most recent month that data
      is available as of the release date. The Nashville home data is from the
      Greater Nashville Association of Realtors.
      Adjusted pre-tax, pre-provision income excludes the impact of net gains
15.   (losses) on investment security sales as well as other real estate owned
      expenses and FHLB prepayment charges.
16.   Represents homes currently listed with MLS in the Nashville MSA.
       

Contact:

Pinnacle Financial Partners, Inc.
Media Contact:
Nikki Klemmer, 615-743-6132
or
Financial Contact:
Harold Carpenter, 615-744-3742
www.pnfp.com
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