PNFP Reports 3Q24 Diluted EPS of $1.86 and Net Interest Margin of 3.22 Percent
Pinnacle Financial Partners (PNFP) reported net income per diluted common share of $1.86 for Q3 2024, up 10.1% from $1.69 in Q3 2023. The company saw strong growth in earning assets and core deposits, with total assets reaching $50.7 billion, a 6.7% year-over-year increase. Net interest margin expanded to 3.22%, up from 3.06% in Q3 2023. Noninterest income grew 26.9% year-over-year to $115.2 million, driven by a 29.7% increase in wealth management revenues. However, income from BHG decreased 34.4% year-over-year. Noninterest expenses increased 21.6% year-over-year to $259.3 million, primarily due to higher salaries and employee benefits. The company's credit quality remained strong, with net charge-offs at 0.21% of average loans. PNFP's board declared a quarterly cash dividend of $0.22 per common share.
Pinnacle Financial Partners (PNFP) ha riportato un utile netto per azione ordinaria diluita di $1.86 per il terzo trimestre del 2024, in aumento del 10,1% rispetto a $1.69 nel terzo trimestre del 2023. L'azienda ha registrato una forte crescita degli attivi produttivi e dei depositi core, con un totale di attivi che ha raggiunto i $50,7 miliardi, un incremento del 6,7% rispetto all'anno precedente. Il margine di interesse netto è aumentato a 3,22%, rispetto al 3,06% nel terzo trimestre del 2023. I ricavi non da interessi sono cresciuti del 26,9% rispetto all'anno precedente, raggiungendo i $115,2 milioni, trainati da un aumento del 29,7% nei ricavi della gestione patrimoniale. Tuttavia, i guadagni da BHG sono diminuiti del 34,4% rispetto all'anno precedente. Le spese non da interessi sono aumentate del 21,6% rispetto all'anno precedente, raggiungendo i $259,3 milioni, principalmente a causa dell'aumento dei salari e dei benefici per i dipendenti. La qualità del credito dell'azienda è rimasta solida, con un tasso di insolvenza netto dello 0,21% sui prestiti medi. Il consiglio di PNFP ha dichiarato un dividendo in contante trimestrale di $0,22 per azione comune.
Pinnacle Financial Partners (PNFP) reportó un ingreso neto por acción común diluida de $1.86 para el tercer trimestre de 2024, un aumento del 10.1% desde $1.69 en el tercer trimestre de 2023. La compañía vio un fuerte crecimiento en activos generadores de ingresos y depósitos básicos, con activos totales alcanzando $50.7 mil millones, un incremento del 6.7% interanual. El margen de interés neto se expandió a 3.22%, en comparación con el 3.06% en el tercer trimestre de 2023. Los ingresos no por intereses crecieron un 26.9% interanual a $115.2 millones, impulsados por un incremento del 29.7% en los ingresos de gestión de patrimonio. Sin embargo, los ingresos de BHG disminuyeron un 34.4% interanual. Los gastos no por intereses aumentaron un 21.6% interanual a $259.3 millones, principalmente debido a salarios más altos y beneficios para empleados. La calidad crediticia de la compañía se mantuvo fuerte, con cancelaciones netas en 0.21% de los préstamos promedio. La junta de PNFP declaró un dividendo en efectivo trimestral de $0.22 por acción común.
Pinnacle Financial Partners (PNFP)는 2024년 3분기 희석주당 순이익 $1.86를 보고했으며, 이는 2023년 3분기의 $1.69에 비해 10.1% 증가한 수치입니다. 이 회사는 수익 자산과 핵심 예금의 강력한 성장을 보았으며, 총 자산이 $50.7억에 도달하여 전년 대비 6.7% 증가했습니다. 순이자 마진은 3.22%로 확대되어 2023년 3분기의 3.06%에서 상승했습니다. 비이자 수익은 전년 대비 26.9% 증가하여 $115.2백만에 달했으며, 이는 자산 관리 수익의 29.7% 증가에 기인합니다. 그러나 BHG에서의 수익은 전년 대비 34.4% 감소했습니다. 비이자 비용은 전년 대비 21.6% 증가하여 $259.3백만에 이르렀으며, 이는 주로 급여와 직원 혜택 증가 때문입니다. 회사의 신용 품질은 강력하게 유지되었으며, 평균 대출의 0.21%에 해당하는 순 채권 상각액을 기록했습니다. PNFP의 이사회는 공통주당 $0.22의 분기 현금 배당금을 선언했습니다.
Pinnacle Financial Partners (PNFP) a rapporté un revenu net par action ordinaire diluée de 1,86 $ pour le troisième trimestre de 2024, en hausse de 10,1 % par rapport à 1,69 $ au troisième trimestre de 2023. La société a connu une forte croissance des actifs générant des revenus et des dépôts de base, avec des actifs totaux atteignant 50,7 milliards de dollars, soit une augmentation de 6,7 % par rapport à l'année précédente. La marge d'intérêt nette s'est accrue à 3,22 %, contre 3,06 % au troisième trimestre de 2023. Les revenus non liés aux intérêts ont augmenté de 26,9 % par rapport à l'année précédente, atteignant 115,2 millions de dollars, tirés par une augmentation de 29,7 % des revenus de gestion de patrimoine. Cependant, les revenus de BHG ont diminué de 34,4 % par rapport à l'année précédente. Les dépenses non liées aux intérêts ont augmenté de 21,6 % par rapport à l'année précédente, atteignant 259,3 millions de dollars, principalement en raison de l'augmentation des salaires et des avantages sociaux des employés. La qualité du crédit de l'entreprise est restée solide, avec des pertes nettes sur prêts représentant 0,21 % des prêts moyens. Le conseil d'administration de PNFP a déclaré un dividende en espèces trimestriel de 0,22 $ par action ordinaire.
Pinnacle Financial Partners (PNFP) meldete einen Nettoertrag je verwässerter Stammaktie von $1,86 für das 3. Quartal 2024, was einem Anstieg von 10,1% im Vergleich zu $1,69 im 3. Quartal 2023 entspricht. Das Unternehmen verzeichnete ein starkes Wachstum bei Ertragsaktiva und Kern-Einlagen, wobei die Gesamtsumme der Aktiva $50,7 Milliarden erreichte, ein Anstieg von 6,7% im Jahresvergleich. Die Nettzinsmarge erweiterte sich auf 3,22%, verglichen mit 3,06% im 3. Quartal 2023. Die nichtzinstragenden Erträge wuchsen im Jahresvergleich um 26,9% auf $115,2 Millionen, angetrieben von einem Anstieg von 29,7% bei den Erträgen aus der Vermögensverwaltung. Allerdings sank das Einkommen aus BHG um 34,4% im Jahresvergleich. Die nichtzinstragenden Ausgaben stiegen um 21,6% im Jahresvergleich auf $259,3 Millionen, hauptsächlich aufgrund höherer Gehälter und Mitarbeiterleistungen. Die Kreditqualität des Unternehmens blieb stark, mit Nettorisikolosen bei 0,21% der durchschnittlichen Kredite. Der Vorstand von PNFP erklärte eine quartalsweise Bar-Dividende von $0,22 pro Stammaktie.
- Net income per diluted share increased 10.1% year-over-year to $1.86
- Total assets grew 6.7% year-over-year to $50.7 billion
- Net interest margin expanded to 3.22%, up from 3.06% in Q3 2023
- Noninterest income grew 26.9% year-over-year to $115.2 million
- Wealth management revenues increased 29.7% year-over-year
- Core deposits grew by $2.0 billion in 2024
- Book value per common share increased 11.3% annualized to $79.33
- Tangible book value per common share increased 16.6% annualized to $55.12
- Common equity Tier one risk-based capital ratio improved to 10.8% from 10.3% at year-end 2023
- Income from BHG decreased 34.4% year-over-year
- Noninterest expenses increased 21.6% year-over-year to $259.3 million
- Net charge-offs to average loans increased to 0.21% from 0.17% at year-end 2023
- Nonperforming assets to total loans increased to 0.35% from 0.27% at year-end 2023
Insights
Pinnacle Financial Partners reported strong Q3 2024 results, with diluted EPS of
- Net interest margin expanded to
3.22% , up from3.06% in Q3 2023 - Core deposits grew at a
9.6% annualized rate - Loan growth of
$539.2 million for the quarter - Pre-tax, pre-provision net revenue increased
6.5% year-over-year
The bank's focus on core deposit growth and strategic market expansions is paying off. However, income from BHG decreased
After considering the adjustments noted in the table below, net income per diluted common share was
|
Three months ended |
|
Nine months ended |
||||||||||||||
|
Sept. 30,
|
June 30,
|
Sept. 30,
|
|
Sept. 30,
|
Sept. 30,
|
|||||||||||
Diluted earnings per common share |
$ |
1.86 |
$ |
0.64 |
$ |
1.69 |
|
$ |
4.08 |
|
$ |
5.99 |
|
||||
Adjustments, net of tax (1): |
|
|
|
|
|
|
|||||||||||
Investment losses on sales of securities, net |
|
— |
|
0.71 |
|
0.10 |
|
|
0.71 |
|
|
0.19 |
|
||||
Gain on sale of fixed assets as a result of sale-leaseback transaction |
|
— |
|
— |
|
— |
|
|
— |
|
|
(0.84 |
) |
||||
Recognition of mortgage servicing asset |
|
— |
|
— |
|
— |
|
|
(0.12 |
) |
|
— |
|
||||
FDIC special assessment |
|
— |
|
— |
|
— |
|
0.07 |
|
|
— |
|
|||||
Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives |
|
— |
|
0.28 |
|
— |
|
|
0.28 |
|
|
— |
|
||||
Diluted earnings per common share after adjustments |
$ |
1.86 |
$ |
1.63 |
$ |
1.79 |
|
$ |
5.02 |
|
$ |
5.34 |
|
||||
(1): Adjustments include tax effect calculated using a marginal tax rate of 25.00 percent for all periods presented. |
"The third quarter was another outstanding quarter for our firm, highlighted by double-digit linked-quarter annualized growth in earning assets, nearly double-digit linked-quarter annualized core deposit growth, and an expanding net interest margin,” said M. Terry Turner, Pinnacle's President and Chief Executive Officer. "Not only am I excited that we grew diluted earnings per share to
"Our robust hiring continues, as we have added 126 new revenue producers thus far this year. Our hiring pipelines remain very active heading into the last quarter of 2024, and we fully expect 2025 to yield double-digit growth as well. I also believe we are well positioned to capitalize on what appears to be a declining interest rate environment. Should the yield curve find its way to a more favorable slope in the coming quarters, this could result in an even better 2025 revenue outlook for our firm."
BALANCE SHEET GROWTH AND LIQUIDITY:
Total assets at Sept. 30, 2024, were
|
Balances at |
Linked
|
Balances at |
Year-over-Year
|
|||||||||||
(dollars in thousands) |
Sept. 30,
|
June 30,
|
Sept. 30,
|
||||||||||||
Loans |
$ |
34,308,310 |
$ |
33,769,150 |
6.4 |
% |
$ |
31,943,284 |
7.4 |
% |
|||||
Securities |
|
8,293,241 |
|
7,882,891 |
20.8 |
% |
|
6,882,276 |
20.5 |
% |
|||||
Other interest-earning assets |
|
2,810,283 |
|
2,433,910 |
61.9 |
% |
|
3,512,452 |
(20.0 |
)% |
|||||
Total interest-earning assets |
$ |
45,411,834 |
$ |
44,085,951 |
12.0 |
% |
$ |
42,338,012 |
7.3 |
% |
|||||
|
|
|
|
|
|
||||||||||
Core deposits: |
|
|
|
|
|
||||||||||
Noninterest-bearing deposits |
$ |
8,229,394 |
$ |
7,932,882 |
15.0 |
% |
$ |
8,324,325 |
(1.1 |
)% |
|||||
Interest-bearing core deposits(1) |
|
27,535,246 |
|
27,024,945 |
7.6 |
% |
|
25,282,458 |
8.9 |
% |
|||||
Noncore deposits and other funding(2) |
|
7,972,199 |
|
7,569,703 |
21.3 |
% |
|
7,420,341 |
7.4 |
% |
|||||
Total funding |
$ |
43,736,839 |
$ |
42,527,530 |
11.4 |
% |
$ |
41,027,124 |
6.6 |
% |
(1): |
Interest-bearing core deposits are interest-bearing deposits, money market accounts and time deposits less than |
(2): |
Noncore deposits and other funding consists of time deposits greater than |
"Loan growth was approximately
"A real highlight for 2024 has been our focus on growing core deposits. Our core deposits are up more than
PRE-TAX, PRE-PROVISION NET REVENUE (PPNR) GROWTH:
Pre-tax, pre-provision net revenues (PPNR) for the three and nine months ended Sept. 30, 2024, were
|
Three months ended |
|
Nine months ended |
|||||||||||||||||
|
Sept. 30, |
|
Sept. 30, |
|||||||||||||||||
(dollars in thousands) |
2024 |
|
2023 |
|
% change |
|
2024 |
|
2023 |
|
% change |
|||||||||
Revenues: |
|
|
|
|
|
|
||||||||||||||
Net interest income |
$ |
351,504 |
$ |
317,242 |
10.8 |
% |
$ |
1,001,800 |
|
$ |
944,866 |
|
6.0 |
% |
||||||
Noninterest income |
|
115,242 |
|
90,797 |
26.9 |
% |
|
259,633 |
|
|
354,165 |
|
(26.7 |
)% |
||||||
Total revenues |
|
466,746 |
|
408,039 |
14.4 |
% |
|
1,261,433 |
|
|
1,299,031 |
|
(2.9 |
)% |
||||||
Noninterest expense |
|
259,319 |
|
213,233 |
21.6 |
% |
|
773,073 |
|
|
636,601 |
|
21.4 |
% |
||||||
Pre-tax, pre-provision net revenue (PPNR) |
|
207,427 |
|
194,806 |
6.5 |
% |
|
488,360 |
|
|
662,430 |
|
(26.3 |
)% |
||||||
Adjustments: |
|
|
|
|
|
|
||||||||||||||
Investment losses on sales of securities, net |
|
— |
|
9,727 |
100.0 |
% |
|
72,103 |
|
|
19,688 |
|
> |
|||||||
Gain on the sale of fixed assets as a result of sale leaseback |
|
— |
|
— |
NA |
|
— |
|
|
(85,692 |
) |
(100.0 |
)% |
|||||||
Recognition of mortgage servicing asset |
|
— |
|
— |
NA |
|
(11,812 |
) |
|
— |
|
100.0 |
% |
|||||||
ORE expense |
|
56 |
|
33 |
69.7 |
% |
|
162 |
|
|
190 |
|
(14.7 |
)% |
||||||
FDIC special assessment |
|
— |
|
— |
NA |
|
7,250 |
|
|
— |
|
100.0 |
% |
|||||||
Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives |
|
— |
|
— |
NA |
|
28,400 |
|
|
— |
|
100.0 |
% |
|||||||
Adjusted PPNR |
$ |
207,483 |
$ |
204,566 |
1.4 |
% |
$ |
584,463 |
|
$ |
596,616 |
|
(2.0 |
)% |
|
Three months ended |
|
Nine months ended |
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|
Sept. 30, 2024 |
June 30, 2024 |
Sept. 30, 2023 |
|
Sept. 30, 2024 |
Sept. 30, 2023 |
|||||||||
Net interest margin |
3.22 |
% |
3.14 |
% |
3.06 |
% |
|
3.14 |
% |
3.22 |
% |
||||
Efficiency ratio |
55.56 |
% |
74.04 |
% |
52.26 |
% |
|
61.29 |
% |
49.01 |
% |
||||
Return on average assets |
1.15 |
% |
0.41 |
% |
1.08 |
% |
|
0.85 |
% |
1.35 |
% |
||||
Return on average tangible common equity (TCE) |
13.61 |
% |
4.90 |
% |
13.43 |
% |
|
10.24 |
% |
16.62 |
% |
||||
Average loan to deposit ratio |
84.99 |
% |
84.95 |
% |
82.80 |
% |
|
84.89 |
% |
83.88 |
% |
Net interest income for the third quarter of 2024 was
Noninterest income for the third quarter of 2024 was
|
Three months ended |
Linked-quarter
|
Three months ended |
Yr-over-Yr
|
|||||||||||
(dollars in thousands) |
Sept. 30, 2024 |
June 30, 2024 |
Sept. 30, 2023 |
||||||||||||
Noninterest income |
$ |
115,242 |
$ |
34,288 |
>100 |
% |
$ |
90,797 |
26.9 |
% |
|||||
Less: |
|
|
|
|
|
||||||||||
Investment losses on sales of securities, net |
|
— |
|
72,103 |
(100.0 |
)% |
|
9,727 |
(100.0 |
)% |
|||||
Adjusted noninterest income |
$ |
115,242 |
$ |
106,391 |
33.3 |
% |
$ |
100,524 |
14.6 |
% |
-
Wealth management revenues, which include investment, trust and insurance services, were
for the third quarter of 2024, compared to$29.5 million for the second quarter of 2024 and$27.8 million for the third quarter of 2023, a year-over-year increase of 29.7 percent. The increase in wealth management revenues was attributable to several factors, but primarily is the result of an increase in capacity with more revenue producers and the placement of those producers in the areas of the firm's most recent strategic market expansions.$22.8 million -
Income from the firm's investment in Banker's Healthcare Group (BHG) was
for the third quarter of 2024, compared to$16.4 million for the second quarter of 2024 and$18.7 million for the third quarter of 2023, a year-over-year decline of 34.4 percent.$25.0 million -
BHG's loan originations were
in the third quarter of 2024, compared to$989 million in the second quarter of 2024 and$871 million in the third quarter of 2023.$1.0 billion -
Loans sold to BHG's community bank partners were approximately
in the third quarter of 2024, compared to approximately$521 million in the second quarter of 2024 and$467 million in the third quarter of 2023.$435 million -
BHG reserves for on-balance sheet loan losses were
, or 9.1 percent of loans held for investment at Sept. 30, 2024, compared to 9.9 percent at June 30, 2024 and 6.4 percent at Sept. 30, 2023.$237 million -
BHG increased its accrual for estimated losses attributable to loan substitutions and prepayments to
, or 6.2 percent of the unpaid balances on loans that were previously purchased by BHG's community bank network, at Sept. 30, 2024, compared to$454 million , or 5.9 percent, at June 30, 2024 and$415 million , or 5.5 percent, at Sept. 30, 2023.$350.3 million
-
BHG's loan originations were
-
Other noninterest income was
for the quarter ended Sept. 30, 2024, an increase of$48.6 million from the second quarter of 2024 and$6.8 million from the third quarter of 2023. Third quarter 2024 other noninterest income was positively impacted by increased bank-owned life insurance revenues attributable to restructuring activities initiated last year, increased customer swap revenues and fair value adjustments related to the firm’s interest in other equity investments.$10.6 million
Noninterest expense for the third quarter of 2024 was
|
Three months ended |
Linked-quarter
|
Three months ended |
Yr-over-Yr
|
|||||||||||
(dollars in thousands) |
Sept. 30, 2024 |
June 30, 2024 |
Sept. 30, 2023 |
||||||||||||
Noninterest expense |
$ |
259,319 |
$ |
271,389 |
(17.8 |
)% |
$ |
213,233 |
21.6 |
% |
|||||
Less: |
|
|
|
|
|
||||||||||
ORE expense |
|
56 |
|
22 |
>100 |
% |
|
33 |
69.7 |
% |
|||||
Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives |
|
— |
|
28,400 |
(100.0 |
)% |
|
— |
NA |
||||||
Adjusted noninterest expense |
$ |
259,263 |
$ |
242,967 |
26.8 |
% |
$ |
213,200 |
21.6 |
% |
-
Salaries and employee benefits were
in the third quarter of 2024, compared to$160.2 million in the second quarter of 2024 and$150.1 million in the third quarter of 2023, reflecting a year-over-year increase of 22.9 percent.$130.3 million - Full-time equivalent associates increased to 3,516.5 at Sept. 30, 2024 from 3,469.0 at June 30, 2024 and 3,329.5 at Sept. 30, 2023, a year-over-year increase of 5.6 percent.
-
Cash and equity incentive costs in the third quarter of 2024 were approximately
higher than the second quarter of 2024 due to the firm anticipating an increased payout percentage for its cash incentive plan than was anticipated at June 30, 2024 and$5.2 million higher than the amounts recorded in the third quarter of 2023 due to an increased number of personnel and the anticipated payout percentage for 2024 being higher than what was anticipated for the 2023 award at Sept. 30, 2023.$15.0 million
-
Equipment and occupancy costs were
in the third quarter of 2024, compared to$42.6 million in the second quarter of 2024, reflecting an increase of 3.7 percent, and$41.0 million in the third quarter of 2023, reflecting a year-over-year increase of 15.3 percent. Comparing the third quarter of 2024 to the third quarter of 2023, several factors contributed to the increase of equipment and occupancy costs, including new equipment and facilities and rent escalators on various properties.$36.9 million -
Noninterest expense categories, other than those specifically noted above, were
in the third quarter of 2024, compared to$56.5 million in the second quarter of 2024, reflecting a decrease of 29.6 percent, and$80.2 million in the third quarter of 2023, reflecting a year-over-year increase of 22.9 percent. Several factors contributed to the decrease in other noninterest expense in the third quarter of 2024 compared to the second quarter of 2024, including recognition of the$46.0 million fee related to terminating an agreement to resell securities previously purchased and professional fees associated with the firm's capital optimization initiatives completed in the second quarter of 2024 partially offset by increased lending-related expenses associated with the loss protection fee for the credit default swap which was also entered into in the second quarter of 2024.$28.4 million
"We anticipated margin expansion in the third quarter, due primarily to the securities portfolio restructuring initiatives we executed during the second quarter," said Harold R. Carpenter, Pinnacle's Chief Financial Officer. "Also during the third quarter, our relationship managers focused on mitigating the impact of the recent reduction in the Federal funds rate. We are pleased to report that our deposit pricing was well contained throughout the quarter, aided by the stability of our noninterest bearing deposit balances. Furthermore, from Aug. 31, 2024, a few weeks prior to the FOMC meeting, through Oct. 11, 2024, our deposit pricing has decreased by 28 basis points, while our loan yields have dropped by 24 basis points, signaling to us that we are doing quite well in managing our net interest spreads here in the initial stages of this new interest rate environment.
"We are again very excited about our core fee performance during the third quarter. Expanding our fee revenues has been a key initiative for us this year, with many of our business lines experiencing the best performance in the history of our firm, particularly with respect to our wealth management unit. Fee revenues from BHG were less in the third quarter than we anticipated at the end of the second quarter, with BHG’s contribution now representing approximately 8 percent of our third quarter pre-tax, pre-provision revenues.
"Our expense results for the third quarter came in slightly higher than we originally anticipated at the beginning of the quarter, with most of this attributable to personnel costs. Our hiring has been better than anticipated as it continues to be a strong recruiting year for our firm, which should serve to bolster revenues in future periods. Another contributor to increased expense for the third quarter was that we increased our accrual for annual cash incentive plan payouts to approximately 90 percent of target level payouts as of the end of the third quarter."
CAPITAL, SOUNDNESS AND TAXES:
|
As of |
|
|||||||||||
|
Sept. 30, 2024 |
Dec. 31, 2023 |
Sept. 30, 2023 |
|
|||||||||
Shareholders' equity to total assets |
|
12.5 |
% |
|
12.6 |
% |
|
12.3 |
% |
|
|||
Tangible common equity to tangible assets |
|
8.7 |
% |
|
8.6 |
% |
|
8.2 |
% |
|
|||
Book value per common share |
$ |
79.33 |
|
$ |
75.80 |
|
$ |
73.23 |
|
|
|||
Tangible book value per common share |
$ |
55.12 |
|
$ |
51.38 |
|
$ |
48.78 |
|
|
|||
Annualized net loan charge-offs to avg. loans (1) |
|
0.21 |
% |
|
0.17 |
% |
|
0.23 |
% |
|
|||
Nonperforming assets to total loans, ORE and other nonperforming assets (NPAs) |
|
0.35 |
% |
|
0.27 |
% |
|
0.14 |
% |
|
|||
Classified asset ratio (Pinnacle Bank) (2) |
|
3.92 |
% |
|
5.22 |
% |
|
4.59 |
% |
|
|||
Construction and land development loans as a percentage of total capital (3) |
|
68.20 |
% |
|
84.20 |
% |
|
83.10 |
% |
|
|||
Construction and land development, non-owner occupied commercial real estate and multi-family loans as a percentage of total capital (3) |
|
243.30 |
% |
|
259.00 |
% |
|
256.40 |
% |
|
|||
Allowance for credit losses (ACL) to total loans |
|
1.14 |
% |
|
1.08 |
% |
|
1.08 |
% |
|
(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. |
(3): |
Calculated using the same guidelines as are used in the Federal Financial Institutions Examination Council's Uniform Bank Performance Report. |
"Net charge-offs to average loans for the third quarter of 2024 were 0.21 percent, down from 0.27 percent in the prior quarter," Carpenter said. "Net charge-offs in the third quarter included a partial charge-off of a commercial and industrial loan of approximately
"Lastly, our book value per common share increased during the quarter from
BOARD OF DIRECTORS DECLARES DIVIDENDS
On Oct. 15, 2024, Pinnacle Financial's Board of Directors approved a quarterly cash dividend of
WEBCAST AND CONFERENCE CALL INFORMATION
Pinnacle will host a webcast and conference call at 8:30 a.m. CDT on Oct. 16, 2024, to discuss third quarter 2024 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
Pinnacle Bank owns a 49 percent interest in Bankers Healthcare Group (BHG), which provides innovative, hassle-free financial solutions to healthcare practitioners and other professionals. Great Place to Work and FORTUNE ranked BHG No. 4 on its 2021 list of Best Workplaces in
The firm began operations in a single location in downtown
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 persistent elevated interest rates, 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
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 bank owned life insurance (BOLI) contracts, charges related to the FDIC special assessment, income associated with the recognition of a mortgage servicing asset in the first quarter of 2024, fees related to terminating an agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives in the second quarter of 2024 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 2024 versus certain periods in 2023 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) |
Sept. 30, 2024 |
Dec. 31, 2023 |
Sept. 30, 2023 |
|||||||||
ASSETS |
|
|
|
|||||||||
Cash and noninterest-bearing due from banks |
$ |
276,578 |
|
$ |
228,620 |
|
$ |
279,652 |
|
|||
Restricted cash |
|
193,758 |
|
|
86,873 |
|
|
17,356 |
|
|||
Interest-bearing due from banks |
|
2,362,828 |
|
|
1,914,856 |
|
|
2,855,094 |
|
|||
Cash and cash equivalents |
|
2,833,164 |
|
|
2,230,349 |
|
|
3,152,102 |
|
|||
Securities purchased with agreement to resell |
|
66,480 |
|
|
558,009 |
|
|
500,000 |
|
|||
Securities available-for-sale, at fair value |
|
5,390,988 |
|
|
4,317,530 |
|
|
3,863,697 |
|
|||
Securities held-to-maturity (fair value of |
|
2,902,253 |
|
|
3,006,357 |
|
|
3,018,579 |
|
|||
Consumer loans held-for-sale |
|
178,600 |
|
|
104,217 |
|
|
119,489 |
|
|||
Commercial loans held-for-sale |
|
8,617 |
|
|
9,280 |
|
|
20,513 |
|
|||
Loans |
|
34,308,310 |
|
|
32,676,091 |
|
|
31,943,284 |
|
|||
Less allowance for credit losses |
|
(391,534 |
) |
|
(353,055 |
) |
|
(346,192 |
) |
|||
Loans, net |
|
33,916,776 |
|
|
32,323,036 |
|
|
31,597,092 |
|
|||
Premises and equipment, net |
|
295,348 |
|
|
256,877 |
|
|
252,669 |
|
|||
Equity method investment |
|
424,637 |
|
|
445,223 |
|
|
480,996 |
|
|||
Accrued interest receivable |
|
226,178 |
|
|
217,491 |
|
|
177,390 |
|
|||
Goodwill |
|
1,846,973 |
|
|
1,846,973 |
|
|
1,846,973 |
|
|||
Core deposits and other intangible assets |
|
22,755 |
|
|
27,465 |
|
|
29,216 |
|
|||
Other real estate owned |
|
750 |
|
|
3,937 |
|
|
2,555 |
|
|||
Other assets |
|
2,588,369 |
|
|
2,613,139 |
|
|
2,462,519 |
|
|||
Total assets |
$ |
50,701,888 |
|
$ |
47,959,883 |
|
$ |
47,523,790 |
|
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|||||||||
Deposits: |
|
|
|
|||||||||
Noninterest-bearing |
$ |
8,229,394 |
|
$ |
7,906,502 |
|
$ |
8,324,325 |
|
|||
Interest-bearing |
|
12,615,993 |
|
|
11,365,349 |
|
|
10,852,086 |
|
|||
Savings and money market accounts |
|
15,188,270 |
|
|
14,427,206 |
|
|
14,306,359 |
|
|||
Time |
|
4,921,231 |
|
|
4,840,753 |
|
|
4,813,039 |
|
|||
Total deposits |
|
40,954,888 |
|
|
38,539,810 |
|
|
38,295,809 |
|
|||
Securities sold under agreements to repurchase |
|
209,956 |
|
|
209,489 |
|
|
195,999 |
|
|||
Federal Home Loan Bank advances |
|
2,146,395 |
|
|
2,138,169 |
|
|
2,110,598 |
|
|||
Subordinated debt and other borrowings |
|
425,600 |
|
|
424,938 |
|
|
424,718 |
|
|||
Accrued interest payable |
|
59,285 |
|
|
66,967 |
|
|
67,442 |
|
|||
Other liabilities |
|
561,506 |
|
|
544,722 |
|
|
591,583 |
|
|||
Total liabilities |
|
44,357,630 |
|
|
41,924,095 |
|
|
41,686,149 |
|
|||
Preferred stock, no par value, 10.0 million shares authorized; 225,000 shares non-cumulative perpetual preferred stock, Series B, liquidation preference |
|
217,126 |
|
|
217,126 |
|
|
217,126 |
|
|||
Common stock, par value |
|
77,232 |
|
|
76,767 |
|
|
76,753 |
|
|||
Additional paid-in capital |
|
3,120,842 |
|
|
3,109,493 |
|
|
3,097,702 |
|
|||
Retained earnings |
|
3,045,571 |
|
|
2,784,927 |
|
|
2,745,934 |
|
|||
Accumulated other comprehensive loss, net of taxes |
|
(116,513 |
) |
|
(152,525 |
) |
|
(299,874 |
) |
|||
Total shareholders' equity |
|
6,344,258 |
|
|
6,035,788 |
|
|
5,837,641 |
|
|||
Total liabilities and shareholders' equity |
$ |
50,701,888 |
|
$ |
47,959,883 |
|
$ |
47,523,790 |
|
|||
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 |
Nine months ended |
||||||||||||||||||
|
Sept. 30, 2024 |
June 30, 2024 |
Sept. 30, 2023 |
Sept. 30, 2024 |
Sept. 30, 2023 |
|||||||||||||||
Interest income: |
|
|
|
|
|
|||||||||||||||
Loans, including fees |
$ |
570,489 |
|
$ |
551,659 |
|
$ |
508,963 |
|
$ |
1,663,347 |
|
$ |
1,419,761 |
|
|||||
Securities |
|
|
|
|
|
|||||||||||||||
Taxable |
|
65,776 |
|
|
51,578 |
|
|
36,525 |
|
|
161,824 |
|
|
97,850 |
|
|||||
Tax-exempt |
|
23,860 |
|
|
24,372 |
|
|
24,185 |
|
|
72,832 |
|
|
72,590 |
|
|||||
Federal funds sold and other |
|
34,740 |
|
|
40,781 |
|
|
57,621 |
|
|
115,735 |
|
|
118,371 |
|
|||||
Total interest income |
|
694,865 |
|
|
668,390 |
|
|
627,294 |
|
|
2,013,738 |
|
|
1,708,572 |
|
|||||
Interest expense: |
|
|
|
|
|
|||||||||||||||
Deposits |
|
310,527 |
|
|
304,449 |
|
|
280,305 |
|
|
915,944 |
|
|
685,562 |
|
|||||
Securities sold under agreements to repurchase |
|
1,495 |
|
|
1,316 |
|
|
1,071 |
|
|
4,210 |
|
|
2,449 |
|
|||||
FHLB advances and other borrowings |
|
31,339 |
|
|
30,363 |
|
|
28,676 |
|
|
91,784 |
|
|
75,695 |
|
|||||
Total interest expense |
|
343,361 |
|
|
336,128 |
|
|
310,052 |
|
|
1,011,938 |
|
|
763,706 |
|
|||||
Net interest income |
|
351,504 |
|
|
332,262 |
|
|
317,242 |
|
|
1,001,800 |
|
|
944,866 |
|
|||||
Provision for credit losses |
|
26,281 |
|
|
30,159 |
|
|
26,826 |
|
|
90,937 |
|
|
77,282 |
|
|||||
Net interest income after provision for credit losses |
|
325,223 |
|
|
302,103 |
|
|
290,416 |
|
|
910,863 |
|
|
867,584 |
|
|||||
Noninterest income: |
|
|
|
|
|
|||||||||||||||
Service charges on deposit accounts |
|
16,217 |
|
|
14,563 |
|
|
12,665 |
|
|
44,219 |
|
|
36,563 |
|
|||||
Investment services |
|
17,868 |
|
|
15,720 |
|
|
13,253 |
|
|
48,339 |
|
|
39,022 |
|
|||||
Insurance sales commissions |
|
3,286 |
|
|
3,715 |
|
|
2,882 |
|
|
10,853 |
|
|
10,598 |
|
|||||
Gains on mortgage loans sold, net |
|
2,643 |
|
|
3,270 |
|
|
2,012 |
|
|
8,792 |
|
|
5,632 |
|
|||||
Investment losses on sales of securities, net |
|
— |
|
|
(72,103 |
) |
|
(9,727 |
) |
|
(72,103 |
) |
|
(19,688 |
) |
|||||
Trust fees |
|
8,383 |
|
|
8,323 |
|
|
6,640 |
|
|
24,121 |
|
|
19,696 |
|
|||||
Income from equity method investment |
|
16,379 |
|
|
18,688 |
|
|
24,967 |
|
|
51,102 |
|
|
70,970 |
|
|||||
Gain on sale of fixed assets |
|
1,837 |
|
|
325 |
|
|
87 |
|
|
2,220 |
|
|
85,946 |
|
|||||
Other noninterest income |
|
48,629 |
|
|
41,787 |
|
|
38,018 |
|
|
142,090 |
|
|
105,426 |
|
|||||
Total noninterest income |
|
115,242 |
|
|
34,288 |
|
|
90,797 |
|
|
259,633 |
|
|
354,165 |
|
|||||
Noninterest expense: |
|
|
|
|
|
|||||||||||||||
Salaries and employee benefits |
|
160,234 |
|
|
150,117 |
|
|
130,344 |
|
|
456,361 |
|
|
398,495 |
|
|||||
Equipment and occupancy |
|
42,564 |
|
|
41,036 |
|
|
36,900 |
|
|
123,246 |
|
|
100,959 |
|
|||||
Other real estate, net |
|
56 |
|
|
22 |
|
|
33 |
|
|
162 |
|
|
190 |
|
|||||
Marketing and other business development |
|
5,599 |
|
|
6,776 |
|
|
5,479 |
|
|
18,500 |
|
|
17,085 |
|
|||||
Postage and supplies |
|
2,965 |
|
|
3,135 |
|
|
2,621 |
|
|
8,871 |
|
|
8,303 |
|
|||||
Amortization of intangibles |
|
1,558 |
|
|
1,568 |
|
|
1,765 |
|
|
4,710 |
|
|
5,339 |
|
|||||
Other noninterest expense |
|
46,343 |
|
|
68,735 |
|
|
36,091 |
|
|
161,223 |
|
|
106,230 |
|
|||||
Total noninterest expense |
|
259,319 |
|
|
271,389 |
|
|
213,233 |
|
|
773,073 |
|
|
636,601 |
|
|||||
Income before income taxes |
|
181,146 |
|
|
65,002 |
|
|
167,980 |
|
|
397,423 |
|
|
585,148 |
|
|||||
Income tax expense |
|
34,455 |
|
|
11,840 |
|
|
35,377 |
|
|
73,626 |
|
|
117,975 |
|
|||||
Net income |
|
146,691 |
|
|
53,162 |
|
|
132,603 |
|
|
323,797 |
|
|
467,173 |
|
|||||
Preferred stock dividends |
|
(3,798 |
) |
|
(3,798 |
) |
|
(3,798 |
) |
|
(11,394 |
) |
|
(11,394 |
) |
|||||
Net income available to common shareholders |
$ |
142,893 |
|
$ |
49,364 |
|
$ |
128,805 |
|
$ |
312,403 |
|
$ |
455,779 |
|
|||||
Per share information: |
|
|
|
|
|
|||||||||||||||
Basic net income per common share |
$ |
1.87 |
|
$ |
0.65 |
|
$ |
1.69 |
|
$ |
4.09 |
|
$ |
6.00 |
|
|||||
Diluted net income per common share |
$ |
1.86 |
|
$ |
0.64 |
|
$ |
1.69 |
|
$ |
4.08 |
|
$ |
5.99 |
|
|||||
Weighted average common shares outstanding: |
|
|
|
|
|
|||||||||||||||
Basic |
|
76,520,599 |
|
|
76,506,121 |
|
|
76,044,182 |
|
|
76,435,370 |
|
|
75,998,965 |
|
|||||
Diluted |
|
76,765,586 |
|
|
76,644,227 |
|
|
76,201,916 |
|
|
76,606,329 |
|
|
76,102,622 |
|
|||||
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
|
Common Stock |
Additional Paid
|
Retained
|
Accumulated Other
|
Total
|
|||||||||||||||||||
|
Shares |
Amounts |
|||||||||||||||||||||||
Balance at December 31, 2022 |
$ |
217,126 |
76,454 |
|
$ |
76,454 |
|
$ |
3,074,867 |
|
$ |
2,341,706 |
|
$ |
(190,761 |
) |
$ |
5,519,392 |
|
||||||
Exercise of employee common stock options & related tax benefits |
|
— |
40 |
|
|
40 |
|
|
931 |
|
|
— |
|
|
— |
|
|
971 |
|
||||||
Preferred dividends paid ( |
|
— |
— |
|
|
— |
|
|
— |
|
|
(11,394 |
) |
|
— |
|
|
(11,394 |
) |
||||||
Common dividends paid ( |
|
— |
— |
|
|
— |
|
|
— |
|
|
(51,551 |
) |
|
|
(51,551 |
) |
||||||||
Issuance of restricted common shares |
|
— |
240 |
|
|
240 |
|
|
(240 |
) |
|
— |
|
|
— |
|
|
— |
|
||||||
Forfeiture of restricted common shares |
|
— |
(21 |
) |
|
(21 |
) |
|
21 |
|
|
— |
|
|
— |
|
|
— |
|
||||||
Restricted shares withheld for taxes & related tax benefits |
|
— |
(53 |
) |
|
(53 |
) |
|
(3,712 |
) |
|
— |
|
|
— |
|
|
(3,765 |
) |
||||||
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 |
|
— |
93 |
|
|
93 |
|
|
(3,738 |
) |
|
— |
|
|
— |
|
|
(3,645 |
) |
||||||
Compensation expense for restricted shares & performance stock units |
|
— |
— |
|
|
— |
|
|
29,573 |
|
|
— |
|
|
— |
|
|
29,573 |
|
||||||
Net income |
|
— |
— |
|
|
— |
|
|
— |
|
|
467,173 |
|
|
— |
|
|
467,173 |
|
||||||
Other comprehensive loss |
|
— |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(109,113 |
) |
|
(109,113 |
) |
||||||
Balance at September 30, 2023 |
$ |
217,126 |
76,753 |
|
$ |
76,753 |
|
$ |
3,097,702 |
|
$ |
2,745,934 |
|
$ |
(299,874 |
) |
$ |
5,837,641 |
|
||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at December 31, 2023 |
$ |
217,126 |
76,767 |
|
$ |
76,767 |
|
$ |
3,109,493 |
|
$ |
2,784,927 |
|
$ |
(152,525 |
) |
$ |
6,035,788 |
|
||||||
Preferred dividends paid ( |
|
— |
— |
|
|
— |
|
|
— |
|
|
(11,394 |
) |
|
— |
|
|
(11,394 |
) |
||||||
Common dividends paid ( |
|
— |
— |
|
|
— |
|
|
— |
|
|
(51,759 |
) |
|
— |
|
|
(51,759 |
) |
||||||
Issuance of restricted common shares |
|
— |
240 |
|
|
240 |
|
|
(240 |
) |
|
— |
|
|
— |
|
|
— |
|
||||||
Forfeiture of restricted common shares |
|
— |
(25 |
) |
|
(25 |
) |
|
25 |
|
|
— |
|
|
— |
|
|
— |
|
||||||
Restricted shares withheld for taxes & related tax benefits |
|
— |
(61 |
) |
|
(61 |
) |
|
(5,100 |
) |
|
— |
|
|
— |
|
|
(5,161 |
) |
||||||
Issuance of common stock pursuant to RSU and PSU agreements, net of shares withheld for taxes & related tax benefits |
|
— |
311 |
|
|
311 |
|
|
(14,741 |
) |
|
— |
|
|
— |
|
|
(14,430 |
) |
||||||
Compensation expense for restricted shares & performance stock units |
|
— |
— |
|
|
— |
|
|
31,405 |
|
|
— |
|
|
— |
|
|
31,405 |
|
||||||
Net income |
|
— |
— |
|
|
— |
|
|
— |
|
|
323,797 |
|
|
— |
|
|
323,797 |
|
||||||
Other comprehensive gain |
|
— |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
36,012 |
|
|
36,012 |
|
||||||
Balance at September 30, 2024 |
$ |
217,126 |
77,232 |
|
$ |
77,232 |
|
$ |
3,120,842 |
|
$ |
3,045,571 |
|
$ |
(116,513 |
) |
$ |
6,344,258 |
|
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES |
|||||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED |
|||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||
(dollars in thousands) |
September |
|
June |
|
March |
|
December |
|
September |
|
June |
||||||||
2024 |
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|||||||||
Balance sheet data, at quarter end: |
|
|
|
|
|
|
|||||||||||||
Commercial and industrial loans |
$ |
12,986,865 |
|
12,328,622 |
|
11,893,198 |
|
11,666,691 |
|
11,307,611 |
|
10,983,911 |
|
||||||
Commercial real estate - owner occupied loans |
|
4,264,743 |
|
4,217,351 |
|
4,044,973 |
|
4,044,896 |
|
3,944,616 |
|
3,845,359 |
|
||||||
Commercial real estate - investment loans |
|
5,919,235 |
|
5,998,326 |
|
6,138,711 |
|
5,929,595 |
|
5,957,426 |
|
5,682,652 |
|
||||||
Commercial real estate - multifamily and other loans |
|
2,213,153 |
|
2,185,858 |
|
1,924,931 |
|
1,605,899 |
|
1,490,184 |
|
1,488,236 |
|
||||||
Consumer real estate - mortgage loans |
|
4,907,766 |
|
4,874,846 |
|
4,828,416 |
|
4,851,531 |
|
4,768,780 |
|
4,692,673 |
|
||||||
Construction and land development loans |
|
3,486,504 |
|
3,621,563 |
|
3,818,334 |
|
4,041,081 |
|
3,942,143 |
|
3,904,774 |
|
||||||
Consumer and other loans |
|
530,044 |
|
542,584 |
|
514,310 |
|
536,398 |
|
532,524 |
|
555,685 |
|
||||||
Total loans |
|
34,308,310 |
|
33,769,150 |
|
33,162,873 |
|
32,676,091 |
|
31,943,284 |
|
31,153,290 |
|
||||||
Allowance for credit losses |
|
(391,534 |
) |
(381,601 |
) |
(371,337 |
) |
(353,055 |
) |
(346,192 |
) |
(337,459 |
) |
||||||
Securities |
|
8,293,241 |
|
7,882,891 |
|
7,371,847 |
|
7,323,887 |
|
6,882,276 |
|
6,623,457 |
|
||||||
Total assets |
|
50,701,888 |
|
49,366,969 |
|
48,894,196 |
|
47,959,883 |
|
47,523,790 |
|
46,875,982 |
|
||||||
Noninterest-bearing deposits |
|
8,229,394 |
|
7,932,882 |
|
7,958,739 |
|
7,906,502 |
|
8,324,325 |
|
8,436,799 |
|
||||||
Total deposits |
|
40,954,888 |
|
39,770,380 |
|
39,402,025 |
|
38,539,810 |
|
38,295,809 |
|
37,722,661 |
|
||||||
Securities sold under agreements to repurchase |
|
209,956 |
|
220,885 |
|
201,418 |
|
209,489 |
|
195,999 |
|
163,774 |
|
||||||
FHLB advances |
|
2,146,395 |
|
2,110,885 |
|
2,116,417 |
|
2,138,169 |
|
2,110,598 |
|
2,200,917 |
|
||||||
Subordinated debt and other borrowings |
|
425,600 |
|
425,380 |
|
425,159 |
|
424,938 |
|
424,718 |
|
424,497 |
|
||||||
Total shareholders' equity |
|
6,344,258 |
|
6,174,668 |
|
6,103,851 |
|
6,035,788 |
|
5,837,641 |
|
5,843,759 |
|
||||||
Balance sheet data, quarterly averages: |
|
|
|
|
|
|
|||||||||||||
Total loans |
$ |
34,081,759 |
|
33,516,804 |
|
33,041,954 |
|
32,371,506 |
|
31,529,854 |
|
30,882,205 |
|
||||||
Securities |
|
8,176,250 |
|
7,322,588 |
|
7,307,201 |
|
6,967,488 |
|
6,801,285 |
|
6,722,247 |
|
||||||
Federal funds sold and other |
|
2,601,267 |
|
3,268,307 |
|
3,274,062 |
|
3,615,908 |
|
4,292,956 |
|
3,350,705 |
|
||||||
Total earning assets |
|
44,859,276 |
|
44,107,699 |
|
43,623,217 |
|
42,954,902 |
|
42,624,095 |
|
40,955,157 |
|
||||||
Total assets |
|
49,535,543 |
|
48,754,091 |
|
48,311,260 |
|
47,668,519 |
|
47,266,199 |
|
45,411,961 |
|
||||||
Noninterest-bearing deposits |
|
8,077,655 |
|
8,000,159 |
|
7,962,217 |
|
8,342,572 |
|
8,515,733 |
|
8,599,781 |
|
||||||
Total deposits |
|
40,101,199 |
|
39,453,828 |
|
38,995,709 |
|
38,515,560 |
|
38,078,665 |
|
36,355,859 |
|
||||||
Securities sold under agreements to repurchase |
|
230,340 |
|
213,252 |
|
210,888 |
|
202,601 |
|
184,681 |
|
162,429 |
|
||||||
FHLB advances |
|
2,128,793 |
|
2,106,786 |
|
2,214,489 |
|
2,112,809 |
|
2,132,638 |
|
2,352,045 |
|
||||||
Subordinated debt and other borrowings |
|
427,380 |
|
427,256 |
|
428,281 |
|
426,999 |
|
426,855 |
|
426,712 |
|
||||||
Total shareholders' equity |
|
6,265,710 |
|
6,138,722 |
|
6,082,616 |
|
5,889,075 |
|
5,898,196 |
|
5,782,239 |
|
||||||
Statement of operations data, for the three months ended: |
|||||||||||||||||||
Interest income |
$ |
694,865 |
|
668,390 |
|
650,483 |
|
644,796 |
|
627,294 |
|
575,239 |
|
||||||
Interest expense |
|
343,361 |
|
336,128 |
|
332,449 |
|
327,544 |
|
310,052 |
|
259,846 |
|
||||||
Net interest income |
|
351,504 |
|
332,262 |
|
318,034 |
|
317,252 |
|
317,242 |
|
315,393 |
|
||||||
Provision for credit losses |
|
26,281 |
|
30,159 |
|
34,497 |
|
16,314 |
|
26,826 |
|
31,689 |
|
||||||
Net interest income after provision for credit losses |
|
325,223 |
|
302,103 |
|
283,537 |
|
300,938 |
|
290,416 |
|
283,704 |
|
||||||
Noninterest income |
|
115,242 |
|
34,288 |
|
110,103 |
|
79,088 |
|
90,797 |
|
173,839 |
|
||||||
Noninterest expense |
|
259,319 |
|
271,389 |
|
242,365 |
|
251,168 |
|
213,233 |
|
211,641 |
|
||||||
Income before income taxes |
|
181,146 |
|
65,002 |
|
151,275 |
|
128,858 |
|
167,980 |
|
245,902 |
|
||||||
Income tax expense |
|
34,455 |
|
11,840 |
|
27,331 |
|
33,879 |
|
35,377 |
|
48,603 |
|
||||||
Net income |
|
146,691 |
|
53,162 |
|
123,944 |
|
94,979 |
|
132,603 |
|
197,299 |
|
||||||
Preferred stock dividends |
|
(3,798 |
) |
(3,798 |
) |
(3,798 |
) |
(3,798 |
) |
(3,798 |
) |
(3,798 |
) |
||||||
Net income available to common shareholders |
$ |
142,893 |
|
49,364 |
|
120,146 |
|
91,181 |
|
128,805 |
|
193,501 |
|
||||||
Profitability and other ratios: |
|
|
|
|
|
|
|||||||||||||
Return on avg. assets (1) |
|
1.15 |
% |
0.41 |
% |
1.00 |
% |
0.76 |
% |
1.08 |
% |
1.71 |
% |
||||||
Return on avg. equity (1) |
|
9.07 |
% |
3.23 |
% |
7.94 |
% |
6.14 |
% |
8.66 |
% |
13.42 |
% |
||||||
Return on avg. common equity (1) |
|
9.40 |
% |
3.35 |
% |
8.24 |
% |
6.38 |
% |
9.00 |
% |
13.95 |
% |
||||||
Return on avg. tangible common equity (1) |
|
13.61 |
% |
4.90 |
% |
12.11 |
% |
9.53 |
% |
13.43 |
% |
21.06 |
% |
||||||
Common stock dividend payout ratio (14) |
|
16.73 |
% |
17.29 |
% |
12.59 |
% |
12.26 |
% |
11.35 |
% |
11.04 |
% |
||||||
Net interest margin (2) |
|
3.22 |
% |
3.14 |
% |
3.04 |
% |
3.06 |
% |
3.06 |
% |
3.20 |
% |
||||||
Noninterest income to total revenue (3) |
|
24.69 |
% |
9.35 |
% |
25.72 |
% |
19.95 |
% |
22.25 |
% |
35.53 |
% |
||||||
Noninterest income to avg. assets (1) |
|
0.93 |
% |
0.28 |
% |
0.92 |
% |
0.66 |
% |
0.76 |
% |
1.54 |
% |
||||||
Noninterest exp. to avg. assets (1) |
|
2.08 |
% |
2.24 |
% |
2.02 |
% |
2.09 |
% |
1.79 |
% |
1.87 |
% |
||||||
Efficiency ratio (4) |
|
55.56 |
% |
74.04 |
% |
56.61 |
% |
63.37 |
% |
52.26 |
% |
43.26 |
% |
||||||
Avg. loans to avg. deposits |
|
84.99 |
% |
84.95 |
% |
84.73 |
% |
84.05 |
% |
82.80 |
% |
84.94 |
% |
||||||
Securities to total assets |
|
16.36 |
% |
15.97 |
% |
15.08 |
% |
15.27 |
% |
14.48 |
% |
14.13 |
% |
||||||
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 |
||||||||||||||||
September 30, 2024 |
September 30, 2023 |
|||||||||||||||||
|
Average
|
Interest |
Rates/
|
Average
|
Interest |
Rates/
|
||||||||||||
Interest-earning assets |
|
|
|
|
|
|
||||||||||||
Loans (1) (2) |
$ |
34,081,759 |
$ |
570,489 |
6.75 |
% |
$ |
31,529,854 |
$ |
508,963 |
6.50 |
% |
||||||
Securities |
|
|
|
|
|
|
||||||||||||
Taxable |
|
4,979,091 |
|
65,776 |
5.26 |
% |
|
3,542,383 |
|
36,525 |
4.09 |
% |
||||||
Tax-exempt (2) |
|
3,197,159 |
|
23,860 |
3.54 |
% |
|
3,258,902 |
|
24,185 |
3.51 |
% |
||||||
Interest-bearing due from banks |
|
2,294,128 |
|
29,705 |
5.15 |
% |
|
3,553,640 |
|
51,109 |
5.71 |
% |
||||||
Resell agreements |
|
50,504 |
|
1,473 |
11.60 |
% |
|
503,153 |
|
3,258 |
2.57 |
% |
||||||
Federal funds sold |
|
— |
|
— |
— |
% |
|
— |
|
— |
— |
% |
||||||
Other |
|
256,635 |
|
3,562 |
5.52 |
% |
|
236,163 |
|
3,254 |
5.47 |
% |
||||||
Total interest-earning assets |
|
44,859,276 |
$ |
694,865 |
6.27 |
% |
|
42,624,095 |
$ |
627,294 |
5.95 |
% |
||||||
Nonearning assets |
|
|
|
|
|
|
||||||||||||
Intangible assets |
|
1,870,719 |
|
|
|
1,877,340 |
|
|
||||||||||
Other nonearning assets |
|
2,805,548 |
|
|
|
2,764,764 |
|
|
||||||||||
Total assets |
$ |
49,535,543 |
|
|
$ |
47,266,199 |
|
|
||||||||||
|
|
|
|
|
|
|
||||||||||||
Interest-bearing liabilities |
|
|
|
|
|
|
||||||||||||
Interest-bearing deposits: |
|
|
|
|
|
|
||||||||||||
Interest checking |
|
12,372,313 |
|
120,645 |
3.88 |
% |
|
10,414,869 |
|
98,974 |
3.77 |
% |
||||||
Savings and money market |
|
14,784,857 |
|
135,189 |
3.64 |
% |
|
14,131,277 |
|
128,453 |
3.61 |
% |
||||||
Time |
|
4,866,374 |
|
54,693 |
4.47 |
% |
|
5,016,786 |
|
52,878 |
4.18 |
% |
||||||
Total interest-bearing deposits |
|
32,023,544 |
|
310,527 |
3.86 |
% |
|
29,562,932 |
|
280,305 |
3.76 |
% |
||||||
Securities sold under agreements to repurchase |
|
230,340 |
|
1,495 |
2.58 |
% |
|
184,681 |
|
1,071 |
2.30 |
% |
||||||
Federal Home Loan Bank advances |
|
2,128,793 |
|
24,929 |
4.66 |
% |
|
2,132,638 |
|
22,710 |
4.22 |
% |
||||||
Subordinated debt and other borrowings |
|
427,380 |
|
6,410 |
5.97 |
% |
|
426,855 |
|
5,966 |
5.54 |
% |
||||||
Total interest-bearing liabilities |
|
34,810,057 |
|
343,361 |
3.92 |
% |
|
32,307,106 |
|
310,052 |
3.81 |
% |
||||||
Noninterest-bearing deposits |
|
8,077,655 |
|
— |
— |
|
|
8,515,733 |
|
— |
— |
|
||||||
Total deposits and interest-bearing liabilities |
|
42,887,712 |
$ |
343,361 |
3.19 |
% |
|
40,822,839 |
$ |
310,052 |
3.01 |
% |
||||||
Other liabilities |
|
382,121 |
|
|
|
545,164 |
|
|
||||||||||
Shareholders' equity |
|
6,265,710 |
|
|
|
5,898,196 |
|
|
||||||||||
Total liabilities and shareholders' equity |
$ |
49,535,543 |
|
|
$ |
47,266,199 |
|
|
||||||||||
Net interest income |
|
$ |
351,504 |
|
|
$ |
317,242 |
|
||||||||||
Net interest spread (3) |
|
|
2.34 |
% |
|
|
2.14 |
% |
||||||||||
Net interest margin (4) |
|
|
3.22 |
% |
|
|
3.06 |
% |
||||||||||
|
|
|
|
|
|
|
||||||||||||
(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 |
||||||||||||||||||
(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 Sept. 30, 2024 would have been |
||||||||||||||||||
(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) |
Nine months ended |
Nine months ended |
||||||||||||||||
September 30, 2024 |
September 30, 2023 |
|||||||||||||||||
|
Average
|
Interest |
Rates/
|
Average
|
Interest |
Rates/
|
||||||||||||
Interest-earning assets |
|
|
|
|
|
|
||||||||||||
Loans (1) (2) |
$ |
33,548,791 |
$ |
1,663,347 |
6.71 |
% |
$ |
30,688,846 |
$ |
1,419,761 |
6.27 |
% |
||||||
Securities |
|
|
|
|
|
|
||||||||||||
Taxable |
|
4,330,537 |
|
161,824 |
4.99 |
% |
|
3,482,068 |
|
97,850 |
3.76 |
% |
||||||
Tax-exempt (2) |
|
3,273,572 |
|
72,832 |
3.54 |
% |
|
3,280,951 |
|
72,590 |
3.53 |
% |
||||||
Interest-bearing due from banks |
|
2,436,917 |
|
96,065 |
5.27 |
% |
|
2,522,300 |
|
100,275 |
5.32 |
% |
||||||
Resell agreements |
|
355,791 |
|
8,972 |
3.37 |
% |
|
508,467 |
|
9,960 |
2.62 |
% |
||||||
Federal funds sold |
|
— |
|
— |
— |
% |
|
— |
|
— |
— |
% |
||||||
Other |
|
253,540 |
|
10,698 |
5.64 |
% |
|
225,402 |
|
8,136 |
4.83 |
% |
||||||
Total interest-earning assets |
|
44,199,148 |
$ |
2,013,738 |
6.19 |
% |
|
40,708,034 |
$ |
1,708,572 |
5.72 |
% |
||||||
Nonearning assets |
|
|
|
|
|
|
||||||||||||
Intangible assets |
|
1,872,285 |
|
|
|
1,879,100 |
|
|
||||||||||
Other nonearning assets |
|
2,797,971 |
|
|
|
2,649,291 |
|
|
||||||||||
Total assets |
$ |
48,869,404 |
|
|
$ |
45,236,425 |
|
|
||||||||||
|
|
|
|
|
|
|
||||||||||||
Interest-bearing liabilities |
|
|
|
|
|
|
||||||||||||
Interest-bearing deposits: |
|
|
|
|
|
|
||||||||||||
Interest checking |
|
12,020,703 |
|
352,158 |
3.91 |
% |
|
9,199,603 |
|
227,263 |
3.30 |
% |
||||||
Savings and money market |
|
14,684,785 |
|
404,340 |
3.68 |
% |
|
14,063,699 |
|
335,997 |
3.19 |
% |
||||||
Time |
|
4,799,977 |
|
159,446 |
4.44 |
% |
|
4,509,386 |
|
122,302 |
3.63 |
% |
||||||
Total interest-bearing deposits |
|
31,505,465 |
|
915,944 |
3.88 |
% |
|
27,772,688 |
|
685,562 |
3.30 |
% |
||||||
Securities sold under agreements to repurchase |
|
218,205 |
|
4,210 |
2.58 |
% |
|
188,605 |
|
2,449 |
1.74 |
% |
||||||
Federal Home Loan Bank advances |
|
2,149,945 |
|
73,443 |
4.56 |
% |
|
1,875,351 |
|
58,284 |
4.16 |
% |
||||||
Subordinated debt and other borrowings |
|
427,638 |
|
18,341 |
5.73 |
% |
|
426,711 |
|
17,411 |
5.46 |
% |
||||||
Total interest-bearing liabilities |
|
34,301,253 |
|
1,011,938 |
3.94 |
% |
|
30,263,355 |
|
763,706 |
3.37 |
% |
||||||
Noninterest-bearing deposits |
|
8,013,578 |
|
— |
— |
|
|
8,812,953 |
|
— |
— |
|
||||||
Total deposits and interest-bearing liabilities |
|
42,314,831 |
$ |
1,011,938 |
3.19 |
% |
|
39,076,308 |
$ |
763,706 |
2.61 |
% |
||||||
Other liabilities |
|
391,847 |
|
|
|
396,965 |
|
|
||||||||||
Shareholders' equity |
|
6,162,726 |
|
|
|
5,763,152 |
|
|
||||||||||
Total liabilities and shareholders' equity |
$ |
48,869,404 |
|
|
$ |
45,236,425 |
|
|
||||||||||
Net interest income |
|
$ |
1,001,800 |
|
|
$ |
944,866 |
|
||||||||||
Net interest spread (3) |
|
|
2.25 |
% |
|
|
2.35 |
% |
||||||||||
Net interest margin (4) |
|
|
3.14 |
% |
|
|
3.22 |
% |
||||||||||
|
|
|
|
|
|
|
||||||||||||
(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 |
||||||||||||||||||
(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 nine months ended Sept. 30, 2024 would have been |
||||||||||||||||||
(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) |
September |
|
June |
|
March |
|
December |
|
September |
|
June |
||||||||
2024 |
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|||||||||
Asset quality information and ratios: |
|
|
|
|
|
|
|||||||||||||
Nonperforming assets: |
|
|
|
|
|
|
|||||||||||||
Nonaccrual loans |
$ |
119,293 |
|
97,649 |
|
108,325 |
|
82,288 |
|
42,950 |
|
44,289 |
|
||||||
ORE and other nonperforming assets (NPAs) |
|
823 |
|
2,760 |
|
2,766 |
|
4,347 |
|
3,019 |
|
3,105 |
|
||||||
Total nonperforming assets |
$ |
120,116 |
|
100,409 |
|
111,091 |
|
86,635 |
|
45,969 |
|
47,394 |
|
||||||
Past due loans over 90 days and still accruing interest |
$ |
3,611 |
|
4,057 |
|
5,273 |
|
6,004 |
|
4,969 |
|
5,257 |
|
||||||
Accruing purchase credit deteriorated loans |
$ |
5,715 |
|
6,021 |
|
6,222 |
|
6,501 |
|
7,010 |
|
7,415 |
|
||||||
Net loan charge-offs |
$ |
18,348 |
|
22,895 |
|
16,215 |
|
13,451 |
|
18,093 |
|
9,771 |
|
||||||
Allowance for credit losses to nonaccrual loans |
|
328.2 |
% |
390.8 |
% |
342.8 |
% |
429.0 |
% |
806.0 |
% |
762.0 |
% |
||||||
As a percentage of total loans: |
|
|
|
|
|
|
|||||||||||||
Past due accruing loans over 30 days |
|
0.16 |
% |
0.16 |
% |
0.17 |
% |
0.23 |
% |
0.16 |
% |
0.14 |
% |
||||||
Potential problem loans |
|
0.14 |
% |
0.18 |
% |
0.28 |
% |
0.39 |
% |
0.42 |
% |
0.32 |
% |
||||||
Allowance for credit losses |
|
1.14 |
% |
1.13 |
% |
1.12 |
% |
1.08 |
% |
1.08 |
% |
1.08 |
% |
||||||
Nonperforming assets to total loans, ORE and other NPAs |
|
0.35 |
% |
0.30 |
% |
0.33 |
% |
0.27 |
% |
0.14 |
% |
0.15 |
% |
||||||
Classified asset ratio (Pinnacle Bank) (6) |
|
3.9 |
% |
4.0 |
% |
4.9 |
% |
5.2 |
% |
4.6 |
% |
3.3 |
% |
||||||
Annualized net loan charge-offs to avg. loans (5) |
|
0.21 |
% |
0.27 |
% |
0.20 |
% |
0.17 |
% |
0.23 |
% |
0.13 |
% |
||||||
|
|
|
|
|
|
|
|||||||||||||
Interest rates and yields: |
|
|
|
|
|
|
|||||||||||||
Loans |
|
6.75 |
% |
6.71 |
% |
6.67 |
% |
6.62 |
% |
6.50 |
% |
6.30 |
% |
||||||
Securities |
|
4.58 |
% |
4.43 |
% |
4.06 |
% |
4.12 |
% |
3.81 |
% |
3.66 |
% |
||||||
Total earning assets |
|
6.27 |
% |
6.20 |
% |
6.11 |
% |
6.09 |
% |
5.95 |
% |
5.74 |
% |
||||||
Total deposits, including non-interest bearing |
|
3.08 |
% |
3.10 |
% |
3.10 |
% |
3.07 |
% |
2.92 |
% |
2.52 |
% |
||||||
Securities sold under agreements to repurchase |
|
2.58 |
% |
2.48 |
% |
2.67 |
% |
2.54 |
% |
2.30 |
% |
1.93 |
% |
||||||
FHLB advances |
|
4.66 |
% |
4.66 |
% |
4.38 |
% |
4.26 |
% |
4.22 |
% |
4.20 |
% |
||||||
Subordinated debt and other borrowings |
|
5.97 |
% |
5.62 |
% |
5.60 |
% |
5.59 |
% |
5.54 |
% |
5.44 |
% |
||||||
Total deposits and interest-bearing liabilities |
|
3.19 |
% |
3.20 |
% |
3.20 |
% |
3.15 |
% |
3.01 |
% |
2.65 |
% |
||||||
|
|
|
|
|
|
|
|||||||||||||
Capital and other ratios (6): |
|
|
|
|
|
|
|||||||||||||
Pinnacle Financial ratios: |
|
|
|
|
|
|
|||||||||||||
Shareholders' equity to total assets |
|
12.5 |
% |
12.5 |
% |
12.5 |
% |
12.6 |
% |
12.3 |
% |
12.5 |
% |
||||||
Common equity Tier one |
|
10.8 |
% |
10.7 |
% |
10.4 |
% |
10.3 |
% |
10.3 |
% |
10.2 |
% |
||||||
Tier one risk-based |
|
11.4 |
% |
11.2 |
% |
10.9 |
% |
10.8 |
% |
10.9 |
% |
10.8 |
% |
||||||
Total risk-based |
|
13.2 |
% |
13.2 |
% |
12.9 |
% |
12.7 |
% |
12.8 |
% |
12.7 |
% |
||||||
Leverage |
|
9.6 |
% |
9.5 |
% |
9.5 |
% |
9.4 |
% |
9.4 |
% |
9.5 |
% |
||||||
Tangible common equity to tangible assets |
|
8.7 |
% |
8.6 |
% |
8.5 |
% |
8.6 |
% |
8.2 |
% |
8.3 |
% |
||||||
Pinnacle Bank ratios: |
|
|
|
|
|
|
|||||||||||||
Common equity Tier one |
|
11.7 |
% |
11.5 |
% |
11.3 |
% |
11.1 |
% |
11.2 |
% |
11.1 |
% |
||||||
Tier one risk-based |
|
11.7 |
% |
11.5 |
% |
11.3 |
% |
11.1 |
% |
11.2 |
% |
11.1 |
% |
||||||
Total risk-based |
|
12.6 |
% |
12.5 |
% |
12.2 |
% |
12.0 |
% |
12.0 |
% |
11.9 |
% |
||||||
Leverage |
|
9.8 |
% |
9.7 |
% |
9.7 |
% |
9.7 |
% |
9.7 |
% |
9.8 |
% |
||||||
Construction and land development loans as a percentage of total capital (17) |
|
68.2 |
% |
72.9 |
% |
77.5 |
% |
84.2 |
% |
83.1 |
% |
84.5 |
% |
||||||
Non-owner occupied commercial real estate and multi-family as a percentage of total capital (17) |
|
243.3 |
% |
254.0 |
% |
258.0 |
% |
259.0 |
% |
256.4 |
% |
256.7 |
% |
||||||
|
|
|
|
|
|
|
|||||||||||||
This information is preliminary and based on company data available at the time of the presentation. |
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES |
|||||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED |
|||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||
(dollars in thousands, except per share data) |
|
September |
|
June |
|
March |
|
December |
|
September |
|
June |
|||||||
|
2024 |
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||||||
Per share data: |
|
|
|
|
|
|
|
||||||||||||
Earnings per common share – basic |
$ |
1.87 |
|
0.65 |
|
1.58 |
|
1.20 |
|
1.69 |
|
2.55 |
|
||||||
Earnings per common share - basic, excluding non-GAAP adjustments |
$ |
1.87 |
|
1.63 |
|
1.54 |
|
1.70 |
|
1.79 |
|
1.80 |
|
||||||
Earnings per common share – diluted |
$ |
1.86 |
|
0.64 |
|
1.57 |
|
1.19 |
|
1.69 |
|
2.54 |
|
||||||
Earnings per common share - diluted, excluding non-GAAP adjustments |
$ |
1.86 |
|
1.63 |
|
1.53 |
|
1.68 |
|
1.79 |
|
1.79 |
|
||||||
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) |
$ |
79.33 |
|
77.15 |
|
76.23 |
|
75.80 |
|
73.23 |
|
73.32 |
|
||||||
Tangible book value per common share at quarter end (7) |
$ |
55.12 |
|
52.92 |
|
51.98 |
|
51.38 |
|
48.78 |
|
48.85 |
|
||||||
Revenue per diluted common share |
$ |
6.08 |
|
4.78 |
|
5.60 |
|
5.16 |
|
5.35 |
|
6.43 |
|
||||||
Revenue per diluted common share, excluding non-GAAP adjustments |
$ |
6.08 |
|
5.72 |
|
5.45 |
|
5.25 |
|
5.48 |
|
5.43 |
|
||||||
|
|
|
|
|
|
|
|
||||||||||||
Investor information: |
|
|
|
|
|
|
|
||||||||||||
Closing sales price of common stock on last trading day of quarter |
$ |
97.97 |
|
80.04 |
|
85.88 |
|
87.22 |
|
67.04 |
|
56.65 |
|
||||||
High closing sales price of common stock during quarter |
$ |
100.56 |
|
84.70 |
|
91.82 |
|
89.34 |
|
75.95 |
|
57.93 |
|
||||||
Low closing sales price of common stock during quarter |
$ |
76.97 |
|
74.62 |
|
79.26 |
|
60.77 |
|
56.41 |
|
46.17 |
|
||||||
|
|
|
|
|
|
|
|
||||||||||||
Closing sales price of depositary shares on last trading day of quarter |
$ |
24.39 |
|
23.25 |
|
23.62 |
|
22.60 |
|
22.70 |
|
23.75 |
|
||||||
High closing sales price of depositary shares during quarter |
$ |
24.50 |
|
23.85 |
|
24.44 |
|
23.65 |
|
23.85 |
|
24.90 |
|
||||||
Low closing sales price of depositary shares during quarter |
$ |
23.25 |
|
22.93 |
|
22.71 |
|
21.00 |
|
21.54 |
|
19.95 |
|
||||||
|
|
|
|
|
|
|
|
||||||||||||
Other information: |
|
|
|
|
|
|
|
||||||||||||
Residential mortgage loan sales: |
|
|
|
|
|
|
|
||||||||||||
Gross loans sold |
$ |
209,144 |
|
217,080 |
|
148,576 |
|
142,556 |
|
198,247 |
|
192,948 |
|
||||||
Gross fees (8) |
$ |
4,974 |
|
5,368 |
|
3,540 |
|
3,191 |
|
4,350 |
|
4,133 |
|
||||||
Gross fees as a percentage of loans originated |
|
2.38 |
% |
2.47 |
% |
2.38 |
% |
2.24 |
% |
2.19 |
% |
2.14 |
% |
||||||
Net gain on residential mortgage loans sold |
$ |
2,643 |
|
3,270 |
|
2,879 |
|
879 |
|
2,012 |
|
1,567 |
|
||||||
Investment gains (losses) on sales of securities, net (13) |
$ |
— |
|
(72,103 |
) |
— |
|
14 |
|
(9,727 |
) |
(9,961 |
) |
||||||
Brokerage account assets, at quarter end (9) |
$ |
12,791,337 |
|
11,917,578 |
|
10,756,108 |
|
9,810,457 |
|
9,041,716 |
|
9,007,230 |
|
||||||
Trust account managed assets, at quarter end |
$ |
6,830,323 |
|
6,443,916 |
|
6,297,887 |
|
5,530,495 |
|
5,047,128 |
|
5,084,592 |
|
||||||
Core deposits (10) |
$ |
35,764,640 |
|
34,957,827 |
|
34,638,610 |
|
33,738,917 |
|
33,606,783 |
|
32,780,767 |
|
||||||
Core deposits to total funding (10) |
|
81.8 |
% |
82.2 |
% |
82.2 |
% |
81.7 |
% |
81.9 |
% |
80.9 |
% |
||||||
Risk-weighted assets |
$ |
40,530,585 |
|
39,983,191 |
|
40,531,311 |
|
40,205,295 |
|
39,527,086 |
|
38,853,588 |
|
||||||
Number of offices |
|
136 |
|
135 |
|
128 |
|
128 |
|
128 |
|
127 |
|
||||||
Total core deposits per office |
$ |
262,975 |
|
258,947 |
|
270,614 |
|
263,585 |
|
262,553 |
|
258,116 |
|
||||||
Total assets per full-time equivalent employee |
$ |
14,418 |
|
14,231 |
|
14,438 |
|
14,287 |
|
14,274 |
|
14,166 |
|
||||||
Annualized revenues per full-time equivalent employee |
$ |
528.0 |
|
425.0 |
|
508.5 |
|
468.4 |
|
486.2 |
|
593.0 |
|
||||||
Annualized expenses per full-time equivalent employee |
$ |
293.4 |
|
314.6 |
|
287.8 |
|
296.8 |
|
254.1 |
|
256.5 |
|
||||||
Number of employees (full-time equivalent) |
|
3,516.5 |
|
3,469.0 |
|
3,386.5 |
|
3,357.0 |
|
3,329.5 |
|
3,309.0 |
|
||||||
Associate retention rate (11) |
|
94.6 |
% |
94.4 |
% |
94.2 |
% |
94.2 |
% |
93.6 |
% |
94.1 |
% |
||||||
|
|
|
|
|
|
|
|
||||||||||||
This information is preliminary and based on company data available at the time of the presentation. |
PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES |
|
|
|
|||||||||||||
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED |
|
|
|
|||||||||||||
|
Three months ended |
|
Nine months ended |
|||||||||||||
(dollars in thousands, except per share data) |
September |
|
June |
|
September |
|
September |
|
September |
|||||||
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
||||||||||
Net interest income |
$ |
351,504 |
|
332,262 |
|
317,242 |
|
|
1,001,800 |
|
944,866 |
|
||||
|
|
|
|
|
|
|
||||||||||
Noninterest income |
|
115,242 |
|
34,288 |
|
90,797 |
|
|
259,633 |
|
354,165 |
|
||||
Total revenues |
|
466,746 |
|
366,550 |
|
408,039 |
|
|
1,261,433 |
|
1,299,031 |
|
||||
Less: Investment losses (gains) on sales of securities, net |
|
— |
|
72,103 |
|
9,727 |
|
|
72,103 |
|
19,688 |
|
||||
Gain on sale of fixed assets as a result of sale-leaseback transaction |
|
— |
|
— |
|
— |
|
|
— |
|
(85,692 |
) |
||||
Recognition of mortgage servicing asset |
|
— |
|
— |
|
— |
|
|
(11,812 |
) |
— |
|
||||
Total revenues excluding the impact of adjustments noted above |
$ |
466,746 |
|
438,653 |
|
417,766 |
|
|
1,321,724 |
|
1,233,027 |
|
||||
|
|
|
|
|
|
|
||||||||||
Noninterest expense |
$ |
259,319 |
|
271,389 |
|
213,233 |
|
|
773,073 |
|
636,601 |
|
||||
Less: ORE expense |
|
56 |
|
22 |
|
33 |
|
|
162 |
|
190 |
|
||||
FDIC special assessment |
|
— |
|
— |
|
— |
|
|
7,250 |
|
— |
|
||||
Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives |
|
— |
|
28,400 |
|
— |
|
|
28,400 |
|
— |
|
||||
Noninterest expense excluding the impact of adjustments noted above |
$ |
259,263 |
|
242,967 |
|
213,200 |
|
|
737,261 |
|
636,411 |
|
||||
|
|
|
|
|
|
|
||||||||||
Pre-tax income |
$ |
181,146 |
|
65,002 |
|
167,980 |
|
|
397,423 |
|
585,148 |
|
||||
Provision for credit losses |
|
26,281 |
|
30,159 |
|
26,826 |
|
|
90,937 |
|
77,282 |
|
||||
Pre-tax pre-provision net revenue |
|
207,427 |
|
95,161 |
|
194,806 |
|
|
488,360 |
|
662,430 |
|
||||
Less: Adjustments noted above |
|
56 |
|
100,525 |
|
9,760 |
|
|
96,103 |
|
(65,814 |
) |
||||
Adjusted pre-tax pre-provision net revenue (12) |
$ |
207,483 |
|
195,686 |
|
204,566 |
|
|
584,463 |
|
596,616 |
|
||||
|
|
|
|
|
|
|
||||||||||
Noninterest income |
$ |
115,242 |
|
34,288 |
|
90,797 |
|
|
259,633 |
|
354,165 |
|
||||
Less: Adjustments noted above |
|
— |
|
72,103 |
|
9,727 |
|
|
60,291 |
|
(66,004 |
) |
||||
Noninterest income excluding the impact of adjustments noted above |
$ |
115,242 |
|
106,391 |
|
100,524 |
|
|
319,924 |
|
288,161 |
|
||||
|
|
|
|
|
|
|
||||||||||
Efficiency ratio (4) |
|
55.56 |
% |
74.04 |
% |
52.26 |
% |
|
61.29 |
% |
49.01 |
% |
||||
Adjustments noted above |
|
(0.01 |
)% |
(18.65 |
)% |
(1.23 |
)% |
|
(5.51 |
)% |
2.60 |
% |
||||
Efficiency ratio excluding adjustments noted above (4) |
|
55.55 |
% |
55.39 |
% |
51.03 |
% |
|
55.78 |
% |
51.61 |
% |
||||
|
|
|
|
|
|
|
||||||||||
Total average assets |
$ |
49,535,543 |
|
48,754,091 |
|
47,266,199 |
|
|
48,869,404 |
|
45,236,425 |
|
||||
|
|
|
|
|
|
|
||||||||||
Noninterest income to average assets (1) |
|
0.93 |
% |
0.28 |
% |
0.76 |
% |
|
0.71 |
% |
1.05 |
% |
||||
Less: Adjustments noted above |
|
— |
% |
0.60 |
% |
0.08 |
% |
|
0.16 |
% |
(0.20 |
)% |
||||
Noninterest income (excluding adjustments noted above) to average assets (1) |
|
0.93 |
% |
0.88 |
% |
0.84 |
% |
|
0.87 |
% |
0.85 |
% |
||||
|
|
|
|
|
|
|
||||||||||
Noninterest expense to average assets (1) |
|
2.08 |
% |
2.24 |
% |
1.79 |
% |
|
2.11 |
% |
1.88 |
% |
||||
Adjustments as noted above |
|
— |
% |
(0.24 |
)% |
— |
% |
|
(0.09 |
)% |
— |
% |
||||
Noninterest expense (excluding adjustments noted above) to average assets (1) |
|
2.08 |
% |
2.00 |
% |
1.79 |
% |
|
2.02 |
% |
1.88 |
% |
||||
|
|
|
|
|
|
|
||||||||||
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) |
September |
|
June |
|
March |
|
December |
|
September |
|
June |
||||||||
2024 |
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|||||||||
Net income available to common shareholders |
$ |
142,893 |
|
49,364 |
|
120,146 |
|
91,181 |
|
128,805 |
|
193,501 |
|
||||||
Investment (gains) losses on sales of securities, net |
|
— |
|
72,103 |
|
— |
|
(14 |
) |
9,727 |
|
9,961 |
|
||||||
Gain on sale of fixed assets as a result of sale-leaseback transaction |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(85,692 |
) |
||||||
Loss on BOLI restructuring |
|
— |
|
— |
|
— |
|
16,252 |
|
— |
|
— |
|
||||||
FDIC special assessment |
|
— |
|
— |
|
7,250 |
|
29,000 |
|
— |
|
— |
|
||||||
ORE expense |
|
56 |
|
22 |
|
84 |
|
125 |
|
33 |
|
58 |
|
||||||
Recognition of mortgage servicing asset |
|
— |
|
— |
|
(11,812 |
) |
— |
|
— |
|
— |
|
||||||
Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives |
|
— |
|
28,400 |
|
— |
|
— |
|
— |
|
— |
|
||||||
Tax effect on above noted adjustments (16) |
|
(14 |
) |
(25,131 |
) |
1,120 |
|
(7,278 |
) |
(2,440 |
) |
18,918 |
|
||||||
Net income available to common shareholders excluding adjustments noted above |
$ |
142,935 |
|
124,758 |
|
116,788 |
|
129,266 |
|
136,125 |
|
136,746 |
|
||||||
|
|
|
|
|
|
|
|||||||||||||
Basic earnings per common share |
$ |
1.87 |
|
0.65 |
|
1.58 |
|
1.20 |
|
1.69 |
|
2.55 |
|
||||||
Less: |
|
|
|
|
|
|
|||||||||||||
Investment (gains) losses on sales of securities, net |
|
— |
|
0.94 |
|
— |
|
— |
|
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 |
|
— |
|
— |
|
||||||
FDIC special assessment |
|
— |
|
— |
|
0.10 |
|
0.38 |
|
— |
|
— |
|
||||||
ORE expense |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
||||||
Recognition of mortgage servicing asset |
|
— |
|
— |
|
(0.15 |
) |
— |
|
— |
|
— |
|
||||||
Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives |
|
— |
|
0.37 |
|
— |
|
— |
|
— |
|
— |
|
||||||
Tax effect on above noted adjustments (16) |
|
— |
|
(0.33 |
) |
0.01 |
|
(0.10 |
) |
(0.03 |
) |
0.25 |
|
||||||
Basic earnings per common share excluding adjustments noted above |
$ |
1.87 |
|
1.63 |
|
1.54 |
|
1.70 |
|
1.79 |
|
1.80 |
|
||||||
|
|
|
|
|
|
|
|||||||||||||
Diluted earnings per common share |
$ |
1.86 |
|
0.64 |
|
1.57 |
|
1.19 |
|
1.69 |
|
2.54 |
|
||||||
Less: |
|
|
|
|
|
|
|||||||||||||
Investment (gains) losses on sales of securities, net |
|
— |
|
0.94 |
|
— |
|
— |
|
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 |
|
— |
|
— |
|
||||||
FDIC special assessment |
|
— |
|
— |
|
0.10 |
|
0.38 |
|
— |
|
— |
|
||||||
ORE expense |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
||||||
Recognition of mortgage servicing asset |
|
— |
|
— |
|
(0.15 |
) |
— |
|
— |
|
— |
|
||||||
Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives |
|
— |
|
0.37 |
|
— |
|
— |
|
— |
|
— |
|
||||||
Tax effect on above noted adjustments (16) |
|
— |
|
(0.32 |
) |
0.01 |
|
(0.09 |
) |
(0.03 |
) |
0.25 |
|
||||||
Diluted earnings per common share excluding the adjustments noted above |
$ |
1.86 |
|
1.63 |
|
1.53 |
|
1.68 |
|
1.79 |
|
1.80 |
|
||||||
|
|
|
|
|
|
|
|||||||||||||
Revenue per diluted common share |
$ |
6.08 |
|
4.78 |
|
5.60 |
|
5.16 |
|
5.35 |
|
6.43 |
|
||||||
Adjustments due to revenue-impacting items as noted above |
|
— |
|
0.94 |
|
(0.15 |
) |
0.09 |
|
0.13 |
|
(1.00 |
) |
||||||
Revenue per diluted common share excluding adjustments due to revenue-impacting items as noted above |
$ |
6.08 |
|
5.72 |
|
5.45 |
|
5.25 |
|
5.48 |
|
5.43 |
|
||||||
|
|
|
|
|
|
|
|||||||||||||
Book value per common share at quarter end (7) |
$ |
79.33 |
|
77.15 |
|
76.23 |
|
75.80 |
|
73.23 |
|
73.32 |
|
||||||
Adjustment due to goodwill, core deposit and other intangible assets |
|
(24.21 |
) |
(24.23 |
) |
(24.25 |
) |
(24.42 |
) |
(24.45 |
) |
(24.47 |
) |
||||||
Tangible book value per common share at quarter end (7) |
$ |
55.12 |
|
52.92 |
|
51.98 |
|
51.38 |
|
48.78 |
|
48.85 |
|
||||||
|
|
|
|
|
|
|
|||||||||||||
Equity method investment (15) |
|
|
|
|
|
|
|||||||||||||
Fee income from BHG, net of amortization |
$ |
16,379 |
|
18,688 |
|
16,035 |
|
14,432 |
|
24,967 |
|
26,924 |
|
||||||
Funding cost to support investment |
|
5,762 |
|
5,704 |
|
5,974 |
|
5,803 |
|
6,546 |
|
6,005 |
|
||||||
Pre-tax impact of BHG |
|
10,617 |
|
12,984 |
|
10,061 |
|
8,629 |
|
18,421 |
|
20,919 |
|
||||||
Income tax expense at statutory rates (16) |
|
2,654 |
|
3,246 |
|
2,515 |
|
2,157 |
|
4,605 |
|
5,230 |
|
||||||
Earnings attributable to BHG |
$ |
7,963 |
|
9,738 |
|
7,546 |
|
6,472 |
|
13,816 |
|
15,689 |
|
||||||
Basic earnings per common share attributable to BHG |
$ |
0.10 |
|
0.13 |
|
0.10 |
|
0.09 |
|
0.18 |
|
0.21 |
|
||||||
Diluted earnings per common share attributable to BHG |
$ |
0.10 |
|
0.13 |
|
0.10 |
|
0.08 |
|
0.18 |
|
0.21 |
|
||||||
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 |
|
|
|
||||
|
|
Nine months ended |
|||||
(dollars in thousands, except per share data) |
|
September 30, |
|||||
|
2024 |
2023 |
|||||
Net income available to common shareholders |
|
$ |
312,403 |
|
455,779 |
|
|
Investment losses on sales of securities, net |
|
|
72,103 |
|
19,688 |
|
|
Gain on sale of fixed assets as a result of sale-leaseback transaction |
|
|
— |
|
(85,692 |
) |
|
Loss on BOLI restructuring |
|
|
— |
|
— |
|
|
ORE expense |
|
|
162 |
|
190 |
|
|
FDIC special assessment |
|
|
7,250 |
|
— |
|
|
Recognition of mortgage servicing asset |
|
|
(11,812 |
) |
— |
|
|
Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives |
|
|
28,400 |
|
— |
|
|
Tax effect on adjustments noted above (16) |
|
|
(24,026 |
) |
16,454 |
|
|
Net income available to common shareholders excluding adjustments noted above |
|
$ |
384,480 |
|
406,419 |
|
|
|
|
|
|
||||
Basic earnings per common share |
|
$ |
4.09 |
|
6.00 |
|
|
Less: |
|
|
|
||||
Investment losses on sales of securities, net |
|
|
0.94 |
|
0.26 |
|
|
Gain on sale of fixed assets as a result of sale-leaseback transaction |
|
|
— |
|
(1.13 |
) |
|
Loss on BOLI restructuring |
|
|
— |
|
— |
|
|
ORE expense |
|
|
— |
|
— |
|
|
Recognition of mortgage servicing asset |
|
|
(0.15 |
) |
— |
|
|
FDIC special assessment |
|
|
0.09 |
|
— |
|
|
Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives |
|
|
0.37 |
|
— |
|
|
Tax effect on above noted adjustments (16) |
|
|
(0.31 |
) |
0.22 |
|
|
Basic earnings per common share excluding adjustments noted above |
|
$ |
5.03 |
|
5.35 |
|
|
|
|
|
|
||||
Diluted earnings per common share |
|
|
4.08 |
|
5.99 |
|
|
Less: |
|
|
|
||||
Investment losses on sales of securities, net |
|
|
0.94 |
|
0.26 |
|
|
Gain on sale of fixed assets as a result of sale-leaseback transaction |
|
|
— |
|
(1.13 |
) |
|
Loss on BOLI restructuring |
|
|
— |
|
— |
|
|
ORE expense |
|
|
— |
|
— |
|
|
FDIC special assessment |
|
|
0.09 |
|
— |
|
|
Recognition of mortgage servicing asset |
|
|
(0.15 |
) |
— |
|
|
Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives |
|
|
0.37 |
|
— |
|
|
Tax effect on above noted adjustments (16) |
|
|
(0.31 |
) |
0.22 |
|
|
Diluted earnings per common share excluding the adjustments noted above |
|
$ |
5.02 |
|
5.34 |
|
|
|
|
|
|
||||
Revenue per diluted common share |
|
$ |
16.47 |
|
17.07 |
|
|
Adjustments due to revenue-impacting items as noted above |
|
|
0.78 |
|
(0.87 |
) |
|
Revenue per diluted common share excluding adjustments due to revenue-impacting items noted above |
|
$ |
17.25 |
|
16.20 |
|
|
|
|
|
|
||||
|
|
|
|
||||
Equity method investment (15) |
|
|
|
||||
Fee income from BHG, net of amortization |
|
$ |
51,102 |
|
70,970 |
|
|
Funding cost to support investment |
|
|
17,345 |
|
18,332 |
|
|
Pre-tax impact of BHG |
|
|
33,757 |
|
52,638 |
|
|
Income tax expense at statutory rates (16) |
|
|
8,439 |
|
13,160 |
|
|
Earnings attributable to BHG |
|
$ |
25,318 |
|
39,478 |
|
|
|
|
|
|
||||
Basic earnings per common share attributable to BHG |
|
$ |
0.33 |
|
0.52 |
|
|
Diluted earnings per common share attributable to BHG |
|
$ |
0.33 |
|
0.52 |
|
|
|
|
|
|
||||
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 |
|
Nine months ended |
||||||||||||||
(dollars in thousands, except per share data) |
September |
June |
September |
|
September |
September |
|||||||||||
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
|
|
|
|
|
|
|
|||||||||||
Return on average assets (1) |
|
1.15 |
% |
0.41 |
% |
1.08 |
% |
|
|
0.85 |
% |
1.35 |
% |
||||
Adjustments as noted above |
|
— |
% |
0.62 |
% |
0.06 |
% |
|
|
0.20 |
% |
(0.15 |
)% |
||||
Return on average assets excluding adjustments noted above (1) |
|
1.15 |
% |
1.03 |
% |
1.14 |
% |
|
|
1.05 |
% |
1.20 |
% |
||||
|
|
|
|
|
|
|
|||||||||||
Tangible assets: |
|
|
|
|
|
|
|||||||||||
Total assets |
$ |
50,701,888 |
|
49,366,969 |
|
47,523,790 |
|
|
$ |
50,701,888 |
|
47,523,790 |
|
||||
Less: Goodwill |
|
(1,846,973 |
) |
(1,846,973 |
) |
(1,846,973 |
) |
|
|
(1,846,973 |
) |
(1,846,973 |
) |
||||
Core deposit and other intangible assets |
|
(22,755 |
) |
(24,313 |
) |
(29,216 |
) |
|
|
(22,755 |
) |
(29,216 |
) |
||||
Net tangible assets |
$ |
48,832,160 |
|
47,495,683 |
|
45,647,601 |
|
|
$ |
48,832,160 |
|
45,647,601 |
|
||||
|
|
|
|
|
|
|
|||||||||||
Tangible common equity: |
|
|
|
|
|
|
|||||||||||
Total shareholders' equity |
$ |
6,344,258 |
|
6,174,668 |
|
5,837,641 |
|
|
$ |
6,344,258 |
|
5,837,641 |
|
||||
Less: Preferred shareholders' equity |
|
(217,126 |
) |
(217,126 |
) |
(217,126 |
) |
|
|
(217,126 |
) |
(217,126 |
) |
||||
Total common shareholders' equity |
|
6,127,132 |
|
5,957,542 |
|
5,620,515 |
|
|
|
6,127,132 |
|
5,620,515 |
|
||||
Less: Goodwill |
|
(1,846,973 |
) |
(1,846,973 |
) |
(1,846,973 |
) |
|
|
(1,846,973 |
) |
(1,846,973 |
) |
||||
Core deposit and other intangible assets |
|
(22,755 |
) |
(24,313 |
) |
(29,216 |
) |
|
|
(22,755 |
) |
(29,216 |
) |
||||
Net tangible common equity |
$ |
4,257,404 |
|
4,086,256 |
|
3,744,326 |
|
|
$ |
4,257,404 |
|
3,744,326 |
|
||||
|
|
|
|
|
|
|
|||||||||||
Ratio of tangible common equity to tangible assets |
|
8.72 |
% |
8.60 |
% |
8.20 |
% |
|
|
8.72 |
% |
8.20 |
% |
||||
|
|
|
|
|
|
|
|||||||||||
Average tangible assets: |
|
|
|
|
|
|
|||||||||||
Average assets |
$ |
49,535,543 |
|
48,754,091 |
|
47,266,199 |
|
|
$ |
48,869,404 |
|
45,236,425 |
|
||||
Less: Average goodwill |
|
(1,846,973 |
) |
(1,846,973 |
) |
(1,846,973 |
) |
|
|
(1,846,973 |
) |
(1,846,973 |
) |
||||
Average core deposit and other intangible assets |
|
(23,746 |
) |
(25,309 |
) |
(30,367 |
) |
|
|
(25,312 |
) |
(32,127 |
) |
||||
Net average tangible assets |
$ |
47,664,824 |
|
46,881,809 |
|
45,388,859 |
|
|
$ |
46,997,119 |
|
43,357,325 |
|
||||
|
|
|
|
|
|
|
|||||||||||
Return on average assets (1) |
|
1.15 |
% |
0.41 |
% |
1.08 |
% |
|
|
0.85 |
% |
1.35 |
% |
||||
Adjustment due to goodwill, core deposit and other intangible assets |
|
0.04 |
% |
0.01 |
% |
0.05 |
% |
|
|
0.04 |
% |
0.06 |
% |
||||
Return on average tangible assets (1) |
|
1.19 |
% |
0.42 |
% |
1.13 |
% |
|
|
0.89 |
% |
1.41 |
% |
||||
Adjustments as noted above |
|
— |
% |
0.65 |
% |
0.06 |
% |
|
|
0.20 |
% |
(0.16 |
)% |
||||
Return on average tangible assets excluding adjustments noted above (1) |
|
1.19 |
% |
1.07 |
% |
1.19 |
% |
|
|
1.09 |
% |
1.25 |
% |
||||
|
|
|
|
|
|
|
|||||||||||
Average tangible common equity: |
|
|
|
|
|
|
|||||||||||
Average shareholders' equity |
$ |
6,265,710 |
|
6,138,722 |
|
5,898,196 |
|
|
$ |
6,162,726 |
|
5,763,152 |
|
||||
Less: Average preferred equity |
|
(217,126 |
) |
(217,126 |
) |
(217,126 |
) |
|
|
(217,126 |
) |
(217,126 |
) |
||||
Average common equity |
|
6,048,584 |
|
5,921,596 |
|
5,681,070 |
|
|
|
5,945,600 |
|
5,546,026 |
|
||||
Less: Average goodwill |
|
(1,846,973 |
) |
(1,846,973 |
) |
(1,846,973 |
) |
|
|
(1,846,973 |
) |
(1,846,973 |
) |
||||
Average core deposit and other intangible assets |
|
(23,746 |
) |
(25,309 |
) |
(30,367 |
) |
|
|
(25,312 |
) |
(32,127 |
) |
||||
Net average tangible common equity |
$ |
4,177,865 |
|
4,049,314 |
|
3,803,730 |
|
|
$ |
4,073,315 |
|
3,666,926 |
|
||||
|
|
|
|
|
|
|
|||||||||||
Return on average equity (1) |
|
9.07 |
% |
3.23 |
% |
8.66 |
% |
|
|
6.77 |
% |
10.57 |
% |
||||
Adjustment due to average preferred shareholders' equity |
|
0.33 |
% |
0.12 |
% |
0.34 |
% |
|
|
0.25 |
% |
0.42 |
% |
||||
Return on average common equity (1) |
|
9.40 |
% |
3.35 |
% |
9.00 |
% |
|
|
7.02 |
% |
10.99 |
% |
||||
Adjustment due to goodwill, core deposit and other intangible assets |
|
4.21 |
% |
1.55 |
% |
4.43 |
% |
|
|
3.22 |
% |
5.63 |
% |
||||
Return on average tangible common equity (1) |
|
13.61 |
% |
4.90 |
% |
13.43 |
% |
|
|
10.24 |
% |
16.62 |
% |
||||
Adjustments as noted above |
|
— |
% |
7.49 |
% |
0.77 |
% |
|
|
2.37 |
% |
(1.80 |
)% |
||||
Return on average tangible common equity excluding adjustments noted above (1) |
|
13.61 |
% |
12.39 |
% |
14.20 |
% |
|
|
12.61 |
% |
14.82 |
% |
||||
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||
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 |
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, the impact of BOLI restructuring, the impact of the FDIC special assessment, the recognition of the mortgage servicing asset and fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives. |
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. Tax effect calculated using the blended statutory rate of 25.00 percent for all periods in 2024 and 2023. |
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/20241015818928/en/
MEDIA CONTACT: Joe Bass, 615-743-8219
FINANCIAL CONTACT: Harold Carpenter, 615-744-3742
WEBSITE: www.pnfp.com
Source: Pinnacle Financial Partners, Inc.
FAQ
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