Excluding merger-related charges, diluted EPS was
“The first quarter of 2017 was a busy quarter for our firm, and one that will serve as the foundation for continued growth for many years to come,” said
GROWING THE CORE EARNINGS CAPACITY OF THE FIRM:
- Revenues for the quarter ended
March 31, 2017 were$119.1 million , an increase of$19.4 million , or 19.4 percent, from the quarter endedMarch 31, 2016 . - Loans at
March 31, 2017 were a record$8.642 billion , an increase of$192.1 million fromDec. 31, 2016 and$1.814 billion fromMarch 31, 2016 , reflecting year-over-year growth of 26.6 percent. Annualized linked-quarter loan growth approximated 9.1 percent when comparing balances as ofMarch 31, 2017 to balances as ofDec. 31, 2016 . - Average deposit balances for the quarter ended
March 31, 2017 were a record$9.099 billion , an increase of$308.3 million fromDec. 31, 2016 and$2.062 billion fromMarch 31, 2016 , reflecting year-over-year growth of 29.3 percent.
“In the first quarter of 2016, our net loan growth was approximately
FOCUSING ON PROFITABILITY:
- Return on average assets was 1.41 percent for the first quarter of 2017, compared to 1.30 percent for the fourth quarter of 2016 and 1.27 percent for the same quarter last year.
- Excluding merger-related charges in each respective period, return on average assets was 1.42 percent for the first quarter of 2017 compared to 1.37 percent and 1.32 percent for the fourth quarter of 2016 and the first quarter of 2016, respectively.
- First quarter 2017 return on average common equity amounted to 9.70 percent, compared to 9.61 percent for the fourth quarter of 2016 and 9.47 percent for the same quarter last year. First quarter 2017 return on average tangible common equity amounted to 14.74 percent, compared to 15.49 percent for the fourth quarter of 2016 and 15.04 percent for the same quarter last year.
- Excluding merger-related charges in each respective period, return on average tangible common equity amounted to 14.89 percent for the first quarter of 2017, compared to 16.34 percent for the fourth quarter of 2016 and 15.64 percent for the first quarter of 2016.
“We continue to operate our firm at a high level of profitability and are pleased with our first quarter metrics,” said
“BNC’s results will obviously impact our profitability metrics once the merger occurs. That said, once the technology conversions are accomplished we will begin to realize the full earnings potential of the combined firm. During the first quarter of 2017, our technology professionals, working with BNC, modified our technology conversion plan for the transaction. Our plan is to convert Pinnacle’s client accounts to BNC’s core system during the fourth quarter of 2017 and then combine BNC’s client data with Pinnacle’s client data in the first quarter of 2018. Our belief is that this conversion plan significantly reduces integration risk and is a prudent way to balance near term expense with longer term benefits as our technology platform should serve the combined firm for many years of future growth.”
OTHER HIGHLIGHTS:
- Revenues
- Revenue per fully-diluted share was
$2.46 for the quarter endedMarch 31, 2017 , compared to$2.61 for the fourth quarter of 2016 and$2.44 for the first quarter of 2016. The aforementioned capital raise negatively impacted revenue per fully-diluted share by approximately$0.12 for the quarter endedMarch 31, 2017 . - Net interest income for the quarter ended
March 31, 2017 was$88.8 million , compared to$89.4 million for the fourth quarter of 2016 and$73.9 million for the first quarter of 2016.- The firm’s net interest margin was 3.60 percent for the quarter ended
March 31, 2017 , compared to 3.72 percent last quarter and 3.78 percent for the quarter endedMarch 31, 2016 .
- The firm’s net interest margin was 3.60 percent for the quarter ended
- Noninterest income for the quarter ended
March 31, 2017 was$30.4 million , compared to$30.7 million for the fourth quarter of 2016 and$25.9 million for the first quarter of 2016.- Net gains from the sale of mortgage loans were
$4.2 million for the quarter endedMarch 31, 2017 , compared to$2.9 million for the fourth quarter of 2016 and$3.6 million for the quarter endedMarch 31, 2016 , resulting in a year-over-year growth rate of 16.5 percent. - Wealth management revenues, which include investment, trust and insurance services, were
$6.4 million for the quarter endedMarch 31, 2017 , compared to$6.2 million for the fourth quarter of 2016 and$5.6 million for the quarter endedMarch 31, 2016 , resulting in a year-over-year growth rate of 13.4 percent. - Income from the firm’s investment in
Bankers Healthcare Group, Inc. (BHG) was$7.8 million for the quarter endedMarch 31, 2017 , compared to$8.1 million for the quarter endedDec. 31, 2016 and$5.1 million for the first quarter last year.
- Net gains from the sale of mortgage loans were
- Revenue per fully-diluted share was
“Our net interest margin decreased from 3.72 percent during the fourth quarter of 2016 to 3.60 percent in the first quarter of 2017,” Carpenter said. “During the first quarter of 2017, loan discount accretion for fair value adjustments required by purchase accounting contributed approximately
“The
- Noninterest expense
- Noninterest expense for the quarter ended
March 31, 2017 was$62.1 million , compared to$62.8 million in the fourth quarter of 2016 and$54.1 million in the first quarter last year.- Salaries and employee benefits were
$38.4 million in the first quarter of 2017, compared to$38.0 million in the fourth quarter of 2016 and$32.5 million in the first quarter of last year, reflecting a year-over-year increase of 17.9 percent, largely driven by an increase of 143 FTEs as well as annual merit raises awarded in the first quarter of 2017. - Pre-tax merger-related charges were approximately
$672,000 during the quarter endedMarch 31, 2017 , compared to$1.8 million for the quarter endedMarch 31, 2016 . Pre-tax merger related charges during the first quarter of 2017 included costs associated with our proposed merger with BNC. - The efficiency ratio for the first quarter of 2017 decreased to 52.1 percent for the first quarter of 2017, compared to 52.2 percent for the fourth quarter of 2016. The ratio of noninterest expenses to average assets decreased to 2.20 percent for the first quarter of 2017 from 2.26 percent in the fourth quarter of 2016.
- Excluding merger-related charges and other real estate owned (ORE) expense, the efficiency ratio was 51.3 percent for the first quarter of 2017 compared to 49.6 percent for the fourth quarter of 2016, and the ratio of noninterest expense to average assets was 2.17 percent compared to 2.14 percent between the first quarter of 2017 and the fourth quarter of 2016, respectively.
- Salaries and employee benefits were
- Noninterest expense for the quarter ended
“Our noninterest expense to average assets ratio for the first quarter of 2017 is within our stated long-term goals of 2.10 percent and 2.30 percent,” Carpenter said. “Excluding merger-related charges, we believe we will be able to maintain our expense base within those goals. That’s due primarily to the operating leverage that has been created by both our rapid organic growth and high-quality investments and acquisitions.”
- Asset quality
- Nonperforming assets decreased to 0.36 percent of total loans and ORE at
March 31, 2017 , compared to 0.40 percent atDec. 31, 2016 and 0.70 percent atMarch 31, 2016 . Nonperforming assets decreased to$31.3 million atMarch 31, 2017 , compared to$33.7 million atDec. 31, 2016 and$47.9 million atMarch 31, 2016 . - The allowance for loan losses represented 0.68 percent of total loans at
March 31, 2017 , compared to 0.70 percent atDec. 31, 2016 and 0.91 percent atMarch 31, 2016 .- The ratio of the allowance for loan losses to nonperforming loans was 232.9 percent at
March 31, 2017 , compared to 213.9 percent atDec. 31, 2016 and 146.4 percent atMarch 31, 2016 . - Net charge-offs were
$4.3 million for each of the quarters endedMarch 31, 2017 andDec. 31, 2016 , compared to$7.1 million for the quarter endedMarch 31, 2016 . Annualized net charge-offs as a percentage of average loans for the quarter endedMarch 31, 2017 were 0.20 percent, compared to 0.21 percent for the fourth quarter of 2016 and 0.42 percent for the first quarter of 2016. - Provision for loan losses was
$3.7 million in the first quarter of 2017, compared to$3.0 million in the fourth quarter of 2016 and$3.9 million in the first quarter of 2016.
- The ratio of the allowance for loan losses to nonperforming loans was 232.9 percent at
- Nonperforming assets decreased to 0.36 percent of total loans and ORE at
“Overall, asset quality for our firm remains strong,” Carpenter said. “During the first quarter, we continued to reduce our investment in non-prime consumer auto loans. Net charge-offs from the non-prime consumer auto portfolio were
- Other Highlights
- In addition to the aforementioned pre-tax merger-related charges of
$672,000 incurred during the first quarter of 2017, two other significant matters impacted the comparability of first quarter 2017 results to previous periods.- In
January 2017 , the firm issued 3.2 million shares of common stock. Cash proceeds were approximately$192.1 million from the issuance, net of offering costs. - On
Jan. 1, 2017 , Pinnacle adopted FASB Accounting Standards Update (ASU) 2016-09, Stock Compensation Improvements to Employee Share-Based Payment Activity, which represented a change in accounting for the tax effects related to vesting of common shares and the exercise of stock options previously granted to the firm’s employees through its various equity compensation plans. This change resulted in a reduction in first quarter 2017 tax expense of$3.8 million .
- In
- In addition to the aforementioned pre-tax merger-related charges of
“To increase our capital levels in connection with the anticipated merger with BNC, we issued 3.2 million common shares in late January,” Carpenter said. “We were very pleased with market demand for the shares, which we believe is an indicator of the market’s positive reaction to this transaction and the confidence the market has in the combined franchise to deliver continued growth in the years to come. The additional shares did increase our share count, thus negatively impacting our fully-diluted earnings per share results for the first quarter of 2017 by approximately
“In addition, our results for the quarter were impacted by the tax impact associated with equity compensation vesting. Previously these amounts were a component of our firm’s paid in capital. With the required adoption of the new accounting standard, the tax impact of these activities is reflected in tax expense during the quarter when the underlying equity compensation vests or the stock option is exercised. Much of our equity compensation vesting usually occurs in the first quarter. Should our share price continue to trade within recent ranges, we believe the tax benefit for restricted stock lapses and stock options expiring in 2017 will approximate
WEBCAST AND CONFERENCE CALL INFORMATION
Pinnacle will host a webcast and conference call at
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.
The firm began operations in a single 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 and Section 21E of the Exchange Act. The words “expect,” “anticipate,” “intend,” “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 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
Non-GAAP Financial Matters
This release contains certain non-GAAP financial measures, including, without limitation, net income, earnings per diluted share, efficiency ratio, core net interest margin, noninterest expense and the ratio of noninterest expense to average assets and noninterest expense to the sum of net interest income and noninterest income, in each case excluding the impact of expenses related to other real estate owned, gains or losses on sale of investments, FHLB prepayments and other matters for the accounting periods presented. This release also includes non-GAAP financial measures which exclude expenses associated with Pinnacle Bank’s mergers with
Additional Information About the Proposed Transaction and Where to Find It
Investors and security holders are urged to carefully review and consider each of
The documents filed by
The documents filed by BNC with the
In connection with the proposed transaction,
This communication shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Participants in the Solicitation
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CONSOLIDATED BALANCE SHEETS – UNAUDITED | |||||||||||||||
|
|
|
|||||||||||||
ASSETS |
|||||||||||||||
Cash and noninterest-bearing due from banks | $ | 95,215,622 | $ | 84,732,291 | $ | 77,778,562 | |||||||||
Interest-bearing due from banks | 94,775,935 | 97,529,713 | 304,031,806 | ||||||||||||
Federal funds sold and other | 2,682,574 | 1,383,416 | 767,305 | ||||||||||||
Cash and cash equivalents | 192,674,131 | 183,645,420 | 382,577,673 | ||||||||||||
Securities available-for-sale, at fair value | 1,579,776,402 | 1,298,546,056 | 1,017,329,867 | ||||||||||||
Securities held-to-maturity (fair value of |
24,997,568 | 25,251,316 | 31,089,333 | ||||||||||||
Residential mortgage loans held-for-sale | 70,597,985 | 47,710,120 | 35,437,491 | ||||||||||||
Commercial loans held-for-sale | 15,354,496 | 22,587,971 | 10,504,481 | ||||||||||||
Loans | 8,642,032,280 | 8,449,924,736 | 6,827,929,582 | ||||||||||||
Less allowance for loan losses | (58,349,769 | ) | (58,980,475 | ) | (62,239,279 | ) | |||||||||
Loans, net | 8,583,682,511 | 8,390,944,261 | 6,765,690,303 | ||||||||||||
Premises and equipment, net | 97,003,955 | 88,904,145 | 78,771,705 | ||||||||||||
Equity method investment | 210,732,581 | 205,359,844 | 203,007,435 | ||||||||||||
Accrued interest receivables | 29,568,023 | 28,234,826 | 25,168,584 | ||||||||||||
|
551,546,341 | 551,593,796 | 431,840,600 | ||||||||||||
Core deposit and other intangible assets | 13,907,909 | 15,104,038 | 9,667,282 | ||||||||||||
Other real estate owned | 6,234,962 | 6,089,804 | 4,687,379 | ||||||||||||
Other assets | 348,524,131 | 330,651,002 | 265,615,499 | ||||||||||||
Total assets | $ | 11,724,600,995 | $ | 11,194,622,599 | $ | 9,261,387,632 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||||||||||
Deposits: | |||||||||||||||
Noninterest-bearing | $ | 2,508,679,583 | $ | 2,399,191,152 | $ | 2,026,550,350 | |||||||||
Interest-bearing | 1,970,312,733 | 1,808,331,784 | 1,427,213,569 | ||||||||||||
Savings and money market accounts | 3,938,368,793 | 3,714,930,351 | 2,958,363,723 | ||||||||||||
Time | 863,235,880 | 836,853,761 | 668,084,583 | ||||||||||||
Total deposits | 9,280,596,989 | 8,759,307,048 | 7,080,212,225 | ||||||||||||
Securities sold under agreements to repurchase | 71,157,282 | 85,706,558 | 62,801,494 | ||||||||||||
Federal Funds Purchased | 50,000,000 | – | – | ||||||||||||
|
181,264,257 | 406,304,187 | 616,289,980 | ||||||||||||
Subordinated debt and other borrowings | 350,848,829 | 350,768,050 | 209,751,241 | ||||||||||||
Accrued interest payable | 5,655,284 | 5,573,377 | 2,540,401 | ||||||||||||
Other liabilities | 62,002,877 | 90,267,267 | 61,012,450 | ||||||||||||
Total liabilities | 10,001,525,518 | 9,697,926,487 | 8,032,607,791 | ||||||||||||
Stockholders’ equity: | |||||||||||||||
Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding |
– | – | – | ||||||||||||
Common stock, par value |
49,789,649 | 46,359,377 | 41,994,955 | ||||||||||||
Additional paid-in capital | 1,274,762,698 | 1,083,490,728 | 884,015,506 | ||||||||||||
Retained earnings | 413,700,739 | 381,072,505 | 300,746,837 | ||||||||||||
Accumulated other comprehensive (loss) income, net of taxes | (15,177,609 | ) | (14,226,498 | ) | 2,022,543 | ||||||||||
Stockholders’ equity | 1,723,075,477 | 1,496,696,112 | 1,228,779,841 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 11,724,600,995 | $ | 11,194,622,599 | $ | 9,261,387,632 | |||||||||
This information is preliminary and based on company data available at the time of the presentation. | |||||||||||||||
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CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED | ||||||||
Three Months Ended | ||||||||
|
||||||||
2017 | 2016 | |||||||
Interest income: | ||||||||
Loans, including fees | $ | 93,217,947 | $ | 74,404,204 | ||||
Securities | ||||||||
Taxable | 6,433,088 | 4,466,834 | ||||||
Tax-exempt | 1,677,581 | 1,493,757 | ||||||
Federal funds sold and other | 814,317 | 609,587 | ||||||
Total interest income | 102,142,933 | 80,974,382 | ||||||
Interest expense: | ||||||||
Deposits | 8,118,914 | 4,915,563 | ||||||
Securities sold under agreements to repurchase | 49,766 | 48,050 | ||||||
|
5,207,380 | 2,108,092 | ||||||
Total interest expense | 13,376,060 | 7,071,705 | ||||||
Net interest income | 88,766,873 | 73,902,677 | ||||||
Provision for loan losses | 3,651,022 | 3,893,570 | ||||||
Net interest income after provision for loan losses | 85,115,851 | 70,009,107 | ||||||
Noninterest income: | ||||||||
Service charges on deposit accounts | 3,855,483 | 3,442,684 | ||||||
Investment services | 2,821,834 | 2,345,600 | ||||||
Insurance sales commissions | 1,858,890 | 1,705,859 | ||||||
Gains on mortgage loans sold, net | 4,154,952 | 3,567,551 | ||||||
Investment gains on sales, net | – | – | ||||||
Trust fees | 1,705,279 | 1,580,612 | ||||||
Income from equity method investment | 7,822,737 | 5,147,524 | ||||||
Other noninterest income | 8,162,419 | 8,065,880 | ||||||
Total noninterest income | 30,381,594 | 25,855,710 | ||||||
Noninterest expense: | ||||||||
Salaries and employee benefits | 38,352,184 | 32,516,856 | ||||||
Equipment and occupancy | 9,674,658 | 8,130,464 | ||||||
Other real estate, net | 251,973 | 112,272 | ||||||
Marketing and other business development | 1,879,206 | 1,263,361 | ||||||
Postage and supplies | 1,196,445 | 957,087 | ||||||
Amortization of intangibles | 1,196,129 | 873,215 | ||||||
Merger related expenses | 672,016 | 1,829,472 | ||||||
Other noninterest expense | 8,830,765 | 8,380,969 | ||||||
Total noninterest expense | 62,053,376 | 54,063,696 | ||||||
Income before income taxes | 53,444,069 | 41,801,121 | ||||||
Income tax expense | 13,791,022 | 13,835,857 | ||||||
Net income | $ | 39,653,047 | $ | 27,965,264 | ||||
Per share information: | ||||||||
Basic net income per common share | $ | 0.83 | $ | 0.70 | ||||
Diluted net income per common share | $ | 0.82 | $ | 0.68 | ||||
Weighted average shares outstanding: | ||||||||
Basic | 48,022,342 | 40,082,805 | ||||||
Diluted | 48,517,920 | 40,847,027 | ||||||
This information is preliminary and based on company data available at the time of the presentation. | ||||||||
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SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | ||||||||||||||||||||
(dollars in thousands) | March | December | September | June | March | December | ||||||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | 2015 | |||||||||||||||
Balance sheet data, at quarter end: | ||||||||||||||||||||
Commercial real estate – mortgage loans | $ | 3,181,584 | 3,193,496 | 2,991,940 | 2,467,219 | 2,340,720 | 2,275,483 | |||||||||||||
Consumer real estate – mortgage loans | 1,196,375 | 1,185,917 | 1,185,966 | 1,068,620 | 1,042,369 | 1,046,517 | ||||||||||||||
Construction and land development loans | 1,015,127 | 912,673 | 930,230 | 816,681 | 764,079 | 747,697 | ||||||||||||||
Commercial and industrial loans | 2,980,840 | 2,891,710 | 2,873,643 | 2,492,016 | 2,434,656 | 2,228,542 | ||||||||||||||
Consumer and other | 268,106 | 266,129 | 259,241 | 246,866 | 246,106 | 244,996 | ||||||||||||||
Total loans | 8,642,032 | 8,449,925 | 8,241,020 | 7,091,402 | 6,827,930 | 6,543,235 | ||||||||||||||
Allowance for loan losses | (58,350 | ) | (58,980 | ) | (60,249 | ) | (61,412 | ) | (62,239 | ) | (65,432 | ) | ||||||||
Securities | 1,604,774 | 1,323,299 | 1,250,357 | 1,137,733 | 1,048,419 | 966,442 | ||||||||||||||
Total assets | 11,724,601 | 11,194,623 | 10,978,390 | 9,735,668 | 9,261,387 | 8,714,543 | ||||||||||||||
Noninterest-bearing deposits | 2,508,680 | 2,399,191 | 2,369,225 | 2,013,847 | 2,026,550 | 1,889,865 | ||||||||||||||
Total deposits | 9,280,597 | 8,759,307 | 8,670,146 | 7,292,826 | 7,080,212 | 6,971,414 | ||||||||||||||
Securities sold under agreements to repurchase | 71,157 | 85,707 | 84,317 | 73,317 | 62,801 | 79,084 | ||||||||||||||
FHLB advances | 181,264 | 406,304 | 382,338 | 783,240 | 616,290 | 300,305 | ||||||||||||||
Subordinated debt and other borrowings | 350,849 | 350,768 | 262,507 | 229,714 | 209,751 | 141,606 | ||||||||||||||
Total stockholders’ equity | 1,723,075 | 1,496,696 | 1,475,644 | 1,262,154 | 1,228,780 | 1,155,611 | ||||||||||||||
Balance sheet data, quarterly averages: | ||||||||||||||||||||
Total loans | $ | 8,558,267 | 8,357,201 | 8,232,963 | 6,997,592 | 6,742,054 | 6,457,870 | |||||||||||||
Securities | 1,440,917 | 1,265,096 | 1,232,973 | 1,064,060 | 993,675 | 1,002,291 | ||||||||||||||
Total earning assets | 10,261,974 | 9,884,701 | 9,794,094 | 8,362,657 | 8,018,596 | 7,759,053 | ||||||||||||||
Total assets | 11,421,654 | 11,037,555 | 10,883,547 | 9,305,941 | 8,851,978 | 8,565,341 | ||||||||||||||
Noninterest-bearing deposits | 2,434,875 | 2,445,157 | 2,304,533 | 2,003,523 | 1,960,083 | 1,948,703 | ||||||||||||||
Total deposits | 9,099,472 | 8,791,206 | 8,454,424 | 7,093,349 | 7,037,014 | 6,786,931 | ||||||||||||||
Securities sold under agreements to repurchase | 79,681 | 82,415 | 87,067 | 65,121 | 69,129 | 72,854 | ||||||||||||||
FHLB advances | 212,951 | 307,039 | 583,724 | 653,750 | 383,131 | 376,512 | ||||||||||||||
Subordinated debt and other borrowings | 355,082 | 319,790 | 266,934 | 225,240 | 162,575 | 142,660 | ||||||||||||||
Total stockholders’ equity | 1,657,072 | 1,493,684 | 1,442,440 | 1,247,762 | 1,188,153 | 1,153,681 | ||||||||||||||
Statement of operations data, for the three months ended: | ||||||||||||||||||||
Interest income | $ | 102,143 | 101,493 | 97,380 | 83,762 | 80,974 | 77,797 | |||||||||||||
Interest expense | 13,376 | 12,080 | 10,745 | 8,718 | 7,072 | 6,322 | ||||||||||||||
Net interest income | 88,767 | 89,413 | 86,635 | 75,044 | 73,902 | 71,475 | ||||||||||||||
Provision for loan losses | 3,651 | 3,046 | 6,108 | 5,280 | 3,894 | 5,459 | ||||||||||||||
Net interest income after provision for loan losses | 85,116 | 86,367 | 80,527 | 69,764 | 70,008 | 66,016 | ||||||||||||||
Noninterest income | 30,382 | 30,743 | 31,692 | 32,713 | 25,856 | 26,608 | ||||||||||||||
Noninterest expense | 62,054 | 62,765 | 63,526 | 55,931 | 54,064 | 52,191 | ||||||||||||||
Income before taxes | 53,444 | 54,345 | 48,693 | 46,546 | 41,800 | 40,433 | ||||||||||||||
Income tax expense | 13,791 | 18,248 | 16,316 | 15,759 | 13,836 | 13,578 | ||||||||||||||
Net income | $ | 39,653 | 36,097 | 32,377 | 30,787 | 27,964 | 26,855 | |||||||||||||
Profitability and other ratios: | ||||||||||||||||||||
Return on avg. assets (1) | 1.41 | % | 1.30 | % | 1.18 | % | 1.33 | % | 1.27 | % | 1.24 | % | ||||||||
Return on avg. equity (1) | 9.70 | % | 9.61 | % | 8.93 | % | 9.92 | % | 9.47 | % | 9.24 | % | ||||||||
Return on avg. tangible common equity (1) | 14.74 | % | 15.49 | % | 14.47 | % | 15.34 | % | 15.04 | % | 14.97 | % | ||||||||
Dividend payout ratio (18) | 18.67 | % | 19.31 | % | 19.93 | % | 20.90 | % | 21.62 | % | 18.97 | % | ||||||||
Net interest margin (1) (2) | 3.60 | % | 3.72 | % | 3.60 | % | 3.72 | % | 3.78 | % | 3.73 | % | ||||||||
Noninterest income to total revenue (3) | 25.50 | % | 25.59 | % | 26.78 | % | 30.36 | % | 25.92 | % | 27.13 | % | ||||||||
Noninterest income to avg. assets (1) | 1.08 | % | 1.11 | % | 1.16 | % | 1.41 | % | 1.17 | % | 1.23 | % | ||||||||
Noninterest exp. to avg. assets (1) | 2.20 | % | 2.26 | % | 2.32 | % | 2.42 | % | 2.46 | % | 2.42 | % | ||||||||
Noninterest expense (excluding ORE expenses, and merger-related charges) to avg. assets (1) |
2.17 | % | 2.14 | % | 2.11 | % | 2.37 | % | 2.37 | % | 2.30 | % | ||||||||
Efficiency ratio (4) | 52.08 | % | 52.24 | % | 53.69 | % | 51.90 | % | 54.20 | % | 53.21 | % | ||||||||
Avg. loans to average deposits | 94.05 | % | 95.06 | % | 97.38 | % | 98.65 | % | 95.81 | % | 95.15 | % | ||||||||
Securities to total assets | 13.69 | % | 11.82 | % | 11.39 | % | 11.69 | % | 11.32 | % | 11.10 | % | ||||||||
This information is preliminary and based on company data available at the time of the presentation. | ||||||||||||||||||||
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ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED | |||||||||||||||||||||
(dollars in thousands) | Three months ended | Three months ended | |||||||||||||||||||
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Average |
Interest | Rates/ Yields |
Average |
Interest | Rates/ Yields | ||||||||||||||||
Interest-earning assets | |||||||||||||||||||||
Loans (1) | 8,558,267 | 93,218 | 4.49 | % | $ | 6,742,054 | $ | 74,404 | 4.49 | % | |||||||||||
Securities | |||||||||||||||||||||
Taxable | 1,202,806 | 6,433 | 2.17 | % | 810,913 | 4,467 | 2.22 | % | |||||||||||||
Tax-exempt (2) | 238,111 | 1,678 | 3.83 | % | 182,762 | 1,494 | 4.40 | % | |||||||||||||
Federal funds sold and other | 262,790 | 814 | 1.26 | % | 282,867 | 609 | 0.87 | % | |||||||||||||
Total interest-earning assets | 10,261,974 | $ | 102,143 | 4.06 | % | 8,018,596 | $ | 80,974 | 4.09 | % | |||||||||||
Nonearning assets | |||||||||||||||||||||
Intangible assets | 566,221 | 440,466 | |||||||||||||||||||
Other nonearning assets | 593,459 | 392,916 | |||||||||||||||||||
Total assets | $ | 11,421,654 | $ | 8,851,978 | |||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||
Interest checking | $ | 1,918,327 | $ | 1,724 | 0.36 | % | $ | 1,404,963 | $ | 932 | 0.27 | % | |||||||||
Savings and money market | 3,900,321 | 4,609 | 0.48 | % | 2,997,586 | 2,952 | 0.40 | % | |||||||||||||
Time | 845,949 | 1,786 | 0.86 | % | 674,382 | 1,031 | 0.61 | % | |||||||||||||
Total interest-bearing deposits | 6,664,597 | 8,119 | 0.49 | % | 5,076,931 | 4,915 | 0.39 | % | |||||||||||||
Securities sold under agreements to repurchase | 79,681 | 50 | 0.25 | % | 69,129 | 48 | 0.28 | % | |||||||||||||
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212,951 | 904 | 1.72 | % | 383,131 | 536 | 0.56 | % | |||||||||||||
Subordinated debt and other borrowings | 355,082 | 4,303 | 4.92 | % | 162,575 | 1,573 | 3.89 | % | |||||||||||||
Total interest-bearing liabilities | 7,312,311 | 13,376 | 0.74 | % | 5,691,766 | 7,072 | 0.50 | % | |||||||||||||
Noninterest-bearing deposits | 2,434,875 | – | – | 1,960,083 | – | – | |||||||||||||||
Total deposits and interest-bearing liabilities | 9,747,186 | $ | 13,376 | 0.56 | % | 7,651,849 | $ | 7,072 | 0.37 | % | |||||||||||
Other liabilities | 17,396 | 11,976 | |||||||||||||||||||
Stockholders’ equity | 1,657,072 | 1,188,153 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 11,421,654 | $ | 8,851,978 | |||||||||||||||||
Net interest income | $ | 88,767 | $ | 73,902 | |||||||||||||||||
Net interest spread (3) | 3.32 | % | 3.59 | % | |||||||||||||||||
Net interest margin (4) | 3.60 | % | 3.78 | % | |||||||||||||||||
_______________ |
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(1) |
Average balances of nonperforming loans are included in the above amounts. |
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(2) |
Yields computed on tax-exempt instruments on a tax equivalent basis. |
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(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 |
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(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. |
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This information is preliminary and based on company data available at the time of the presentation. | |||||||||||||||||||||
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SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | ||||||||||||||||||||
(dollars in thousands) | March | December | September | June | March | December | ||||||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | 2015 | |||||||||||||||
Asset quality information and ratios: | ||||||||||||||||||||
Nonperforming assets: | ||||||||||||||||||||
Nonaccrual loans | $ | 25,051 | 27,577 | 28,487 | 33,785 | 42,524 | 29,359 | |||||||||||||
Other real estate (ORE) and other nonperforming assets (NPAs) | 6,235 | 6,090 | 5,656 | 5,183 | 5,338 | 6,990 | ||||||||||||||
Total nonperforming assets | $ | 31,286 | 33,667 | 34,143 | 38,968 | 47,862 | 36,349 | |||||||||||||
Past due loans over 90 days and still accruing interest |
$ | 1,110 | 1,134 | 2,093 | 1,623 | 4,556 | 1,768 | |||||||||||||
Troubled debt restructurings (5) | $ | 14,591 | 15,009 | 8,503 | 9,861 | 9,950 | 8,088 | |||||||||||||
Net loan charge-offs | $ | 4,282 | 4,314 | 7,271 | 6,108 | 7,087 | 3,785 | |||||||||||||
Allowance for loan losses to nonaccrual loans | 232.9 | % | 213.9 | % | 211.5 | % | 181.8 | % | 146.4 | % | 222.9 | % | ||||||||
As a percentage of total loans: | ||||||||||||||||||||
Past due accruing loans over 30 days | 0.17 | % | 0.26 | % | 0.24 | % | 0.33 | % | 0.32 | % | 0.31 | % | ||||||||
Potential problem loans (6) | 1.27 | % | 1.36 | % | 1.13 | % | 1.38 | % | 1.65 | % | 1.61 | % | ||||||||
Allowance for loan losses | 0.68 | % | 0.70 | % | 0.73 | % | 0.87 | % | 0.91 | % | 1.00 | % | ||||||||
Nonperforming assets to total loans, ORE and other NPAs | 0.36 | % | 0.40 | % | 0.41 | % | 0.55 | % | 0.70 | % | 0.55 | % | ||||||||
Nonperforming assets to total assets | 0.27 | % | 0.30 | % | 0.31 | % | 0.40 | % | 0.52 | % | 0.42 | % | ||||||||
Classified asset ratio (Pinnacle Bank) (8) | 12.9 | % | 16.4 | % | 15.2 | % | 19.3 | % | 24.2 | % | 18.7 | % | ||||||||
Annualized net loan charge-offs to avg. loans (7) | 0.20 | % | 0.21 | % | 0.35 | % | 0.35 | % | 0.42 | % | 0.23 | % | ||||||||
Wtd. avg. commercial loan internal risk ratings (6) | 4.5 | 4.5 | 4.6 | 4.5 | 4.5 | 4.5 | ||||||||||||||
Interest rates and yields: | ||||||||||||||||||||
Loans | 4.49 | % | 4.60 | % | 4.43 | % | 4.53 | % | 4.49 | % | 4.46 | % | ||||||||
Securities | 2.44 | % | 2.26 | % | 2.29 | % | 2.46 | % | 2.62 | % | 2.45 | % | ||||||||
Total earning assets | 4.06 | % | 4.11 | % | 3.98 | % | 4.06 | % | 4.09 | % | 4.01 | % | ||||||||
Total deposits, including non-interest bearing | 0.36 | % | 0.33 | % | 0.31 | % | 0.29 | % | 0.28 | % | 0.27 | % | ||||||||
Securities sold under agreements to repurchase | 0.25 | % | 0.22 | % | 0.23 | % | 0.24 | % | 0.28 | % | 0.21 | % | ||||||||
FHLB advances | 1.72 | % | 1.38 | % | 0.87 | % | 0.77 | % | 0.56 | % | 0.42 | % | ||||||||
Subordinated debt and other borrowings | 4.92 | % | 4.56 | % | 4.15 | % | 4.19 | % | 3.89 | % | 3.57 | % | ||||||||
Total deposits and interest-bearing liabilities | 0.56 | % | 0.51 | % | 0.46 | % | 0.44 | % | 0.37 | % | 0.34 | % | ||||||||
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Stockholders’ equity to total assets | 14.7 | % | 13.4 | % | 13.4 | % | 13.0 | % | 13.3 | % | 13.3 | % | ||||||||
Common equity Tier one capital | 9.8 | % | 7.9 | % | 7.6 | % | 7.9 | % | 7.8 | % | 8.6 | % | ||||||||
Tier one risk-based | 10.6 | % | 8.6 | % | 8.4 | % | 8.8 | % | 8.7 | % | 9.6 | % | ||||||||
Total risk-based | 13.7 | % | 11.9 | % | 10.5 | % | 11.0 | % | 11.0 | % | 11.3 | % | ||||||||
Leverage | 10.3 | % | 8.6 | % | 8.3 | % | 8.7 | % | 8.8 | % | 9.4 | % | ||||||||
Tangible common equity to tangible assets | 10.4 | % | 8.8 | % | 8.7 | % | 8.9 | % | 8.9 | % | 8.6 | % | ||||||||
Pinnacle Bank ratios: | ||||||||||||||||||||
Common equity Tier one | 11.1 | % | 9.3 | % | 8.6 | % | 8.4 | % | 8.3 | % | 9.0 | % | ||||||||
Tier one risk-based | 11.1 | % | 9.3 | % | 8.6 | % | 8.4 | % | 8.3 | % | 9.0 | % | ||||||||
Total risk-based | 12.9 | % | 11.2 | % | 10.5 | % | 10.6 | % | 10.6 | % | 10.6 | % | ||||||||
Leverage | 10.9 | % | 9.2 | % | 8.6 | % | 8.3 | % | 8.4 | % | 8.8 | % | ||||||||
Construction and land development loans as a percent of total capital (21) |
75.2 | % | 80.3 | % | 87.9 | % | 89.7 | % | 86.5 | % | 90.2 | % | ||||||||
Non-owner occupied commercial real estate and multi-family as a percent of total capital (21) |
220.9 | % | 256.0 | % | 265.5 | % | 253.9 | % | 242.5 | % | 251.4 | % | ||||||||
This information is preliminary and based on company data available at the time of the presentation. | ||||||||||||||||||||
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SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | ||||||||||||||||||||
(dollars in thousands, except per share data) | March | December | September | June | March | December | ||||||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | 2015 | |||||||||||||||
Per share data: | ||||||||||||||||||||
Earnings – basic | $ | 0.83 | 0.79 | 0.71 | 0.75 | 0.70 | 0.67 | |||||||||||||
Earnings – diluted | $ | 0.82 | 0.78 | 0.71 | 0.73 | 0.68 | 0.65 | |||||||||||||
Common dividends per share | $ | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.12 | |||||||||||||
Book value per common share at quarter end (9) | $ | 34.61 | 32.28 | 31.97 | 29.92 | 29.26 | 28.25 | |||||||||||||
Investor information: | ||||||||||||||||||||
Closing sales price | $ | 66.45 | 69.30 | 54.08 | 48.85 | 49.06 | 51.36 | |||||||||||||
High closing sales price during quarter | $ | 71.05 | 71.15 | 57.26 | 51.73 | 51.32 | 56.80 | |||||||||||||
Low closing sales price during quarter | $ | 66.45 | 49.70 | 47.44 | 45.15 | 44.56 | 47.90 | |||||||||||||
Other information: | ||||||||||||||||||||
Gains on mortgage loans sold: | ||||||||||||||||||||
Mortgage loan sales: | ||||||||||||||||||||
Gross loans sold | $ | 160,740 | 221,126 | 214,394 | 198,239 | 163,949 | 164,992 | |||||||||||||
Gross fees (10) | $ | 4,427 | 6,535 | 6,702 | 5,530 | 4,049 | 2,724 | |||||||||||||
Gross fees as a percentage of loans originated | 2.75 | % | 2.96 | % | 3.13 | % | 2.79 | % | 2.47 | % | 1.65 | % | ||||||||
Net gain on mortgage loans sold | $ | 4,155 | 2,869 | 5,097 | 4,221 | 3,568 | 2,181 | |||||||||||||
Investment gains (losses) on sales of securities, net (17) | $ | – | 395 | – | – | – | (10 | ) | ||||||||||||
Brokerage account assets, at quarter-end (11) | $ | 2,280,355 | 2,198,334 | 2,090,316 | 1,964,769 | 1,812,221 | 1,778,566 | |||||||||||||
Trust account managed assets, at quarter-end | $ | 1,011,964 | 1,002,742 | 978,356 | 953,592 | 1,130,271 | 862,699 | |||||||||||||
Core deposits (12) | $ | 8,288,247 | 7,834,973 | 7,714,552 | 6,591,063 | 6,432,388 | 6,331,608 | |||||||||||||
Core deposits to total funding (12) | 83.4 | % | 81.6 | % | 82.1 | % | 78.7 | % | 80.7 | % | 84.5 | % | ||||||||
Risk-weighted assets | $ | 10,489,944 | 10,210,711 | 10,020,690 | 8,609,968 | 8,304,164 | 7,868,570 | |||||||||||||
Total assets per full-time equivalent employee | $ | 9,630 | 9,491 | 9,323 | 9,176 | 8,616 | 8,228 | |||||||||||||
Annualized revenues per full-time equivalent employee | $ | 396.9 | 405.3 | 399.8 | 408.5 | 373.2 | 367.6 | |||||||||||||
Annualized expenses per full-time equivalent employee | $ | 206.7 | 211.7 | 214.6 | 212.0 | 202.3 | 195.6 | |||||||||||||
Number of employees (full-time equivalent) | 1,217.5 | 1,179.5 | 1,177.5 | 1,061.0 | 1,075.0 | 1,058.5 | ||||||||||||||
Associate retention rate (13) | 92.9 | % | 92.7 | % | 93.9 | % | 95.2 | % | 94.0 | % | 92.9 | % | ||||||||
Selected economic information (in thousands) (14): | ||||||||||||||||||||
Nashville MSA nonfarm employment – |
971.8 | 962.0 | 957.6 | 946.5 | 942.2 | 930.8 | ||||||||||||||
Knoxville MSA nonfarm employment – |
394.6 | 392.2 | 394.9 | 393.5 | 391.5 | 388.7 | ||||||||||||||
Chattanooga MSA nonfarm employment – |
256.4 | 254.9 | 252.3 | 252.1 | 250.2 | 248.5 | ||||||||||||||
Memphis MSA nonfarm employment – |
641.6 | 639.9 | 640.3 | 636.0 | 637.3 | 636.7 | ||||||||||||||
Nashville MSA unemployment – |
4.2 | % | 4.1 | % | 3.9 | % | 3.6 | % | 3.4 | % | 4.5 | % | ||||||||
Knoxville MSA unemployment – |
5.2 | % | 4.9 | % | 4.6 | % | 4.3 | % | 4.0 | % | 5.2 | % | ||||||||
Chattanooga MSA unemployment – |
5.4 | % | 5.3 | % | 5.1 | % | 4.7 | % | 4.7 | % | 5.4 | % | ||||||||
Memphis MSA unemployment – |
5.8 | % | 5.5 | % | 5.4 | % | 5.3 | % | 5.0 | % | 6.3 | % | ||||||||
Nashville MSA residential median home price – |
$ | 273.5 | 266.4 | 256.9 | 260.0 | 245.0 | 242.9 | |||||||||||||
Nashville MSA inventory of residential homes for sale – |
7.3 | 6.6 | 8.0 | 8.5 | 7.9 | 7.1 | ||||||||||||||
This information is preliminary and based on company data available at the time of the presentation. | ||||||||||||||||||||
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RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | ||||||||||||||||||||
March | December | September | June | March | December | |||||||||||||||
(dollars in thousands, except per share data) | 2017 | 2016 | 2016 | 2016 | 2016 | 2015 | ||||||||||||||
Net interest income | $ | 88,767 | 89,413 | 86,635 | 75,044 | 73,902 | 71,475 | |||||||||||||
Noninterest income | 30,382 | 30,743 | 31,692 | 32,713 | 25,856 | 26,608 | ||||||||||||||
Less: Investment (gains) and losses on sales, net | – | (395 | ) | – | – | – | 10 | |||||||||||||
Noninterest income excluding investment (gains) and losses on sales of securities, net |
30,382 | 30,348 | 31,692 | 32,713 | 25,856 | 26,618 | ||||||||||||||
Total revenues excluding the impact of investment (gains) and losses on sales of securities, net |
119,149 | 119,761 | 118,327 | 107,757 | 99,758 | 98,093 | ||||||||||||||
Noninterest expense | 62,054 | 62,765 | 63,526 | 55,931 | 54,064 | 52,191 | ||||||||||||||
Less: Other real estate expense | 252 | 44 | 17 | 222 | 112 | 99 | ||||||||||||||
Merger-related charges | 672 | 3,264 | 5,672 | 980 | 1,830 | 2,489 | ||||||||||||||
Noninterest expense excluding the impact of other real estate expense and merger-related charges |
61,130 | 59,457 | 57,837 | 54,729 | 52,122 | 49,603 | ||||||||||||||
Adjusted pre-tax pre-provision income (15) | $ | 58,019 | 60,304 | 60,490 | 53,028 | 47,636 | 48,490 | |||||||||||||
Efficiency Ratio (4) | 52.08 | % | 52.24 | % | 53.69 | % | 51.90 | % | 54.20 | % | 53.21 | % | ||||||||
Adjustment due to investment gains and losses, ORE expense, and merger-related charges |
-0.77 | % | -2.59 | % | -4.81 | % | -1.12 | % | -2.00 | % | -2.64 | % | ||||||||
Efficiency Ratio (excluding investment gains and losses, ORE expense, and merger-related charges) |
51.31 | % | 49.65 | % | 48.88 | % | 50.79 | % | 52.25 | % | 50.57 | % | ||||||||
Total average assets | $ | 11,421,654 | 11,037,555 | 10,883,547 | 9,305,941 | 8,851,978 | 8,565,341 | |||||||||||||
Noninterest expense to avg. assets | 2.20 | % | 2.26 | % | 2.32 | % | 2.42 | % | 2.46 | % | 2.42 | % | ||||||||
Adjustment due to ORE expenses and merger-related charges | -0.03 | % | -0.12 | % | -0.21 | % | -0.05 | % | -0.09 | % | -0.12 | % | ||||||||
Noninterest expense (excluding ORE expense, and merger-related charges) to avg. assets (1) |
2.17 | % | 2.14 | % | 2.11 | % | 2.37 | % | 2.37 | % | 2.30 | % | ||||||||
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Fee income from BHG, net of amortization | $ | 7,823 | 8,136 | 8,475 | 9,644 | 5,148 | 7,839 | |||||||||||||
Funding cost to support investment | 1,775 | 1,797 | 1,760 | 1,732 | 980 | 660 | ||||||||||||||
Pre-tax impact of BHG | 6,048 | 6,339 | 6,715 | 7,912 | 4,168 | 7,179 | ||||||||||||||
Income tax expense at statutory rates | 2,373 | 2,487 | 2,634 | 3,104 | 1,635 | 2,816 | ||||||||||||||
Earnings attributable to BHG |
$ | 3,675 | 3,852 | 4,081 | 4,808 | 2,533 | 4,363 | |||||||||||||
Basic earnings per share attributable to BHG | 0.08 | 0.08 | 0.09 | 0.12 | 0.06 | 0.11 | ||||||||||||||
Diluted earnings per share attributable to BHG | 0.08 | 0.08 | 0.09 | 0.11 | 0.06 | 0.11 | ||||||||||||||
Net income | $ | 39,653 | 36,097 | 32,377 | 30,787 | 27,965 | 26,855 | |||||||||||||
Merger-related charges | 672 | 3,264 | 5,672 | 980 | 1,830 | 2,489 | ||||||||||||||
Tax effect on merger-related charges (20) | (264 | ) | (1,281 | ) | (2,225 | ) | (385 | ) | (718 | ) | (977 | ) | ||||||||
Net income less merger-related charges | $ | 40,061 | 38,080 | 35,824 | 31,382 | 29,077 | 28,367 | |||||||||||||
Basic earnings per share | $ | 0.83 | 0.79 | 0.71 | 0.75 | 0.70 | 0.67 | |||||||||||||
Adjustment to basic earnings per share due to merger-related charges | 0.01 | 0.05 | 0.08 | 0.01 | 0.03 | 0.04 | ||||||||||||||
Basic earnings per share excluding merger-related charges | $ | 0.84 | 0.84 | 0.79 | 0.76 | 0.73 | 0.71 | |||||||||||||
Diluted earnings per share | $ | 0.82 | 0.78 | 0.71 | 0.73 | 0.68 | 0.65 | |||||||||||||
Adjustment to diluted earnings per share due to merger-related charges | 0.01 | 0.05 | 0.07 | 0.02 | 0.03 | 0.04 | ||||||||||||||
Diluted earnings per share excluding merger-related charges | $ | 0.83 | 0.83 | 0.78 | 0.75 | 0.71 | 0.69 | |||||||||||||
This information is preliminary and based on company data available at the time of the presentation. | ||||||||||||||||||||
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RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED | ||||||||||||||||||||
March | December | September | June | March | December | |||||||||||||||
(dollars in thousands, except per share data) | 2017 | 2016 | 2016 | 2016 | 2016 | 2015 | ||||||||||||||
Return on average assets | 1.41 | % | 1.30 | % | 1.18 | % | 1.33 | % | 1.27 | % | 1.24 | % | ||||||||
Adjustment due to merger-related charges | 0.01 | % | 0.07 | % | 0.13 | % | 0.03 | % | 0.05 | % | 0.07 | % | ||||||||
Return on average assets (excluding merger-related charges) (1) | 1.42 | % | 1.37 | % | 1.31 | % | 1.36 | % | 1.32 | % | 1.31 | % | ||||||||
Tangible assets: | ||||||||||||||||||||
Total assets | $ | 11,724,601 | 11,194,623 | 10,978,390 | 9,735,668 | 9,261,387 | 8,714,543 | |||||||||||||
Less: |
(551,546 | ) | (551,594 | ) | (550,580 | ) | (427,574 | ) | (431,841 | ) | (432,232 | ) | ||||||||
Core deposit and other intangible assets | (13,908 | ) | (15,104 | ) | (16,241 | ) | (8,821 | ) | (9,667 | ) | (10,540 | ) | ||||||||
Net tangible assets | $ | 11,159,147 | 10,627,925 | 10,411,569 | 9,299,273 | 8,819,879 | 8,271,771 | |||||||||||||
Tangible equity: | ||||||||||||||||||||
Total stockholders’ equity | $ | 1,723,075 | 1,496,696 | 1,475,644 | 1,262,154 | 1,228,780 | 1,155,611 | |||||||||||||
Less: |
(551,546 | ) | (551,594 | ) | (550,580 | ) | (427,574 | ) | (431,841 | ) | (432,232 | ) | ||||||||
Core deposit and other intangible assets | (13,908 | ) | (15,104 | ) | (16,241 | ) | (8,821 | ) | (9,667 | ) | (10,540 | ) | ||||||||
Net tangible common equity | $ | 1,157,621 | 929,998 | 908,823 | 825,759 | 787,272 | 712,839 | |||||||||||||
Ratio of tangible common equity to tangible assets | 10.37 | % | 8.75 | % | 8.73 | % | 8.88 | % | 8.93 | % | 8.62 | % | ||||||||
Average tangible equity: | ||||||||||||||||||||
Average stockholders’ equity | $ | 1,657,072 | 1,493,684 | 1,442,440 | 1,247,762 | 1,188,153 | 1,153,681 | |||||||||||||
Less: Average goodwill | (551,548 | ) | (551,042 | ) | (541,153 | ) | (431,155 | ) | (430,228 | ) | (430,574 | ) | ||||||||
Core deposit and other intangible assets | (14,674 | ) | (15,724 | ) | (11,296 | ) | (9,367 | ) | (10,237 | ) | (11,261 | ) | ||||||||
Net average tangible common equity | $ | 1,090,850 | 926,918 | 889,991 | 807,240 | 747,688 | 711,846 | |||||||||||||
Return on average common equity | 9.70 | % | 9.61 | % | 8.93 | % | 9.92 | % | 9.47 | % | 9.24 | % | ||||||||
Adjustment due to goodwill, core deposit and other intangible assets | 5.04 | % | 5.88 | % | 5.54 | % | 5.42 | % | 5.57 | % | 5.73 | % | ||||||||
Return on average tangible common equity (1) | 14.74 | % | 15.49 | % | 14.47 | % | 15.34 | % | 15.04 | % | 14.97 | % | ||||||||
Adjustment due to merger-related charges | 0.15 | % | 0.85 | % | 1.54 | % | 0.30 | % | 0.60 | % | 0.84 | % | ||||||||
Return on average tangible common equity (excluding merger-related charges) |
14.89 | % | 16.34 | % | 16.01 | % | 15.64 | % | 15.64 | % | 15.81 | % | ||||||||
Total average assets | $ | 11,421,654 | 11,037,555 | 10,883,547 | 9,305,941 | 8,851,978 | 8,565,341 | |||||||||||||
Net interest margin | 3.60 | % | 3.72 | % | 3.60 | % | 3.72 | % | 3.78 | % | 3.73 | % | ||||||||
Adjustment due to fair value | 0.21 | % | 0.32 | % | 0.21 | % | 0.22 | % | 0.20 | % | 0.18 | % | ||||||||
Core net interest margin | 3.39 | % | 3.40 | % | 3.39 | % | 3.50 | % | 3.58 | % | 3.55 | % | ||||||||
This information is preliminary and based on company data available at the time of the presentation. | ||||||||||||||||||||
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SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED |
1. Ratios are presented on an annualized basis. |
2. Net interest margin is the result of net interest income on a tax equivalent basis divided by average interest earning assets. |
3. Total revenue is equal to the sum of net interest income and noninterest income. |
4. Efficiency ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income. |
5. Troubled debt restructurings include loans where the company, as a result of the borrower’s financial difficulties, has granted a credit concession to the borrower (i.e., interest only payments for a significant period of time, extending the maturity of the loan, etc.). All of these loans continue to accrue interest at the contractual rate. |
6. Average risk ratings are based on an internal loan review system which assigns a numeric value of 1 to 10 to all loans to commercial entities based on their underlying risk characteristics as of the end of each quarter. A “1” risk rating is assigned to credits that exhibit Excellent risk characteristics, “2” exhibit Very Good risk characteristics, “3” Good, “4” Satisfactory, “5” Acceptable or Average, “6” |
7. Annualized net loan charge-offs to average loans ratios are computed by annualizing quarter-to-date net loan charge-offs and dividing the result by average loans for the quarter-to-date period. |
8. Capital ratios are calculated using regulatory reporting regulations enacted for such period and are defined as follows: |
Equity to total assets – End of period total stockholders’ equity as a percentage of end of period assets. |
Tangible common equity to total assets – End of period total stockholders’ equity less end of period goodwill, core deposit and other intangibles as a percentage of end of period assets. |
Leverage – Tier one capital (pursuant to risk-based capital guidelines) as a percentage of adjusted average assets. |
Tier one risk-based – Tier one capital (pursuant to risk-based capital guidelines) as a percentage of total risk-weighted assets. |
Total risk-based – Total capital (pursuant to risk-based capital guidelines) as a percentage of total risk-weighted assets. |
Classified asset – Classified assets as a percentage of Tier 1 capital plus allowance for loan losses. |
Tier one common equity to risk weighted assets – Tier 1 capital (pursuant to risk-based capital guidelines) less the amount of any preferred stock or subordinated indebtedness that is considered as a component of Tier 1 capital as a percentage of total risk-weighted assets. |
9. Book value per share computed by dividing total stockholders’ equity less preferred stock by common shares outstanding. |
10. Amounts are included in the statement of operations in “Gains on mortgage loans sold, net”, net of commissions paid on such amounts. |
11. At fair value, based on information obtained from Pinnacle’s third party broker/dealer for non- |
12. Core deposits include all transaction deposit accounts, money market and savings accounts and all certificates of deposit issued in a denomination of less than $250,000. |
The ratio noted above represents total core deposits divided by total funding, which includes total deposits, FHLB advances, securities sold under agreements to repurchase, subordinated indebtedness and all other interest-bearing liabilities. |
13. Associate retention rate is computed by dividing the number of associates employed at quarter-end less the number of associates that have resigned in the last 12 months by the number of associates employed at quarter-end. Associate retention rate does not include associates at acquired institutions displaced by merger. |
14. Employment and unemployment data is from BERC- MTSU & Bureau of Labor Statistics. Labor force data is seasonally adjusted. The most recent quarter data presented is as of the most recent month that data is available as of the release date. Historical data is subject to update by the BERC- MTSU & Bureau of Labor Statistics. Historical data is presented based on the most recently reported data available by the BERC- MTSU & Bureau of Labor Statistics. The |
15. Adjusted pre-tax, pre-provision income excludes the impact of investment gains and losses on sales and impairments of securities, net, as well as other real estate owned expenses and merger-related charges. |
16. Represents one month’s supply of homes currently listed with MLS based on current sales activity in the Nashville MSA. |
17. Represents investment gains (losses) on sales and impairments, net occurring as a result of both credit losses and losses incurred as the result of a change in management’s intention to sell a bond prior to the recovery of its amortized cost basis. |
18. The dividend payout ratio is calculated as the sum of the annualized dividend rate divided by the trailing 12-months fully diluted earnings per share as of the dividend declaration date. |
19. Earnings from equity method investment includes the impact of the issuance of subordinated debt as well as the funding costs of the overall franchise. Income tax expense is calculated using statutory tax rates. |
20. Tax effect calculated using the blended statutory rate of 39.23% for all periods presented. |
21. Calculated using the same guidelines as are used in the |
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