Net interest income up 14.0 percent
linked-quarter annualized; Quarterly common dividend increased to
$0.24 per share
Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported
net income per diluted common share of $1.91 for the quarter ended
Dec. 31, 2024, compared to net income per diluted common share of
$1.19 for the quarter ended Dec. 31, 2023, an increase of
approximately 60.5 percent. Net income per diluted common share was
$5.96 for the year ended Dec. 31, 2024, compared to $7.14 for the
year ended Dec. 31, 2023, a decrease of approximately 16.5
percent.
After considering the adjustments noted in the table below, net
income per diluted common share was $1.90 for the three months
ended Dec. 31, 2024, compared to $1.68 for the three months ended
Dec. 31, 2023, an increase of 13.1 percent, and compared to $1.86
for the three months ended Sept. 30, 2024, an annualized
linked-quarter growth rate of 8.6 percent. Net income per diluted
common share adjusted for the items noted in the table below was
$6.89 for the year ended Dec. 31, 2024, compared to $6.99 for the
year ended Dec. 31, 2023.
Three months ended
Year ended
Dec. 31, 2024
Sept. 30, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Diluted earnings per common share
$
1.91
$
1.86
$
1.19
$
5.96
$
7.14
Adjustments, net of tax (1):
Investment losses (gains) on sales of
securities, net
(0.01
)
—
—
0.70
0.20
Gain on sale of fixed assets as a result
of sale-leaseback transaction
—
—
—
—
(0.84
)
Loss on BOLI restructuring
—
—
0.21
—
0.21
Recognition of mortgage servicing
asset
—
—
—
(0.12
)
—
FDIC special assessment
—
—
0.28
0.07
0.28
Fees related to terminating agreement to
resell securities previously purchased and professional fees
associated with capital optimization initiatives
—
—
—
0.28
—
Diluted earnings per common share after
adjustments
$
1.90
$
1.86
$
1.68
$
6.89
$
6.99
(1): Adjustments include tax effect
calculated using a marginal tax rate of 25.00 percent for all
periods presented.
"Balance sheet growth during the fourth quarter was remarkable,
with loan growth of 13.7 percent and deposit growth of 18.4
percent, linked-quarter annualized," said M. Terry Turner,
Pinnacle's president and chief executive officer. "Additionally,
our focus on being a great place to work continues to benefit our
firm and shareholders in terms of our unique ability to attract
talent. Our fourth quarter recruiting was again extremely robust,
with 35 new revenue producers added, for the purpose of fueling our
ongoing growth. In total, we recruited 161 revenue producers during
2024 compared to 107 in 2023, a 50.5 percent increase. We are
looking for similar results in 2025.
"We are also pleased to report diluted earnings per share of
$1.91 for the fourth quarter. In this declining rate environment,
we successfully lowered our average cost of deposits by 34 basis
points during the fourth quarter, offsetting the 33 basis point
decline in average loan yields. Consequently, we were able to
maintain our net interest margin quarter over quarter and grow net
interest income by $12.3 million, a 14.0 percent linked-quarter
annualized growth rate.
"So not only do we continue to produce outsized growth in the
current cycle, but we also continue making significant investments
in people and market extensions that we expect to benefit our
shareholders well into the future."
BALANCE SHEET GROWTH AND LIQUIDITY:
Total assets at Dec. 31, 2024, were $52.6 billion, an increase
of approximately $1.9 billion from Sept. 30, 2024, and $4.6 billion
from Dec. 31, 2023, reflecting a linked-quarter annualized increase
of 14.9 percent and a year-over-year increase of 9.7 percent. A
further analysis of select balance sheet trends follows:
Balances at
Linked-
Quarter
Annualized
% Change
Balances at
Year-over-Year
% Change
(dollars in thousands)
Dec. 31, 2024
Sept. 30, 2024
Dec. 31, 2023
Loans
$
35,485,776
$
34,308,310
13.7
%
$
32,676,091
8.6
%
Securities
8,381,268
8,293,241
4.2
%
7,323,887
14.4
%
Other interest-earning assets
3,377,381
2,810,283
80.7
%
2,673,235
26.3
%
Total interest-earning assets
$
47,244,425
$
45,411,834
16.1
%
$
42,673,213
10.7
%
Core deposits:
Noninterest-bearing deposits
$
8,170,448
$
8,229,394
(2.9
)%
$
7,906,502
3.3
%
Interest-bearing core deposits(1)
29,876,456
27,535,246
34.0
%
25,832,415
15.7
%
Noncore deposits and other funding(2)
7,326,287
7,972,199
(32.4
)%
7,573,489
(3.3
)%
Total funding
$
45,373,191
$
43,736,839
15.0
%
$
41,312,406
9.8
%
(1):
Interest-bearing core deposits are
interest-bearing deposits, money market accounts and time deposits
less than $250,000 including reciprocating time and money market
deposits.
(2):
Noncore deposits and other funding
consists of time deposits greater than $250,000, securities sold
under agreements to repurchase, public funds, brokered deposits,
FHLB advances and subordinated debt.
"As we noted in our third quarter earnings release, we were
optimistic loan growth would accelerate during the fourth quarter,"
Turner said. "Ultimately, the fourth quarter was one of our
strongest quarters ever for loan and deposit growth, with loan
growth of $1.2 billion and deposit growth of $1.9 billion.
"For most of our history, we have been viewed as one of the
strongest organic loan growers among small and mid-cap banks. And
now, our ongoing investments in organic deposit growth strategies
like adding new branch locations and extending into new markets,
building new industry verticals for segments that are typically net
providers of funds, and hiring bankers that have strong depositor
followings are yielding outsized deposit growth as well."
PRE-TAX, PRE-PROVISION NET REVENUE (PPNR) GROWTH AND
PROFITABILITY:
Pre-tax, pre-provision net revenues (PPNR) for the three months
and year ended Dec. 31, 2024, were $213.4 million and $701.8
million, respectively, compared to $145.2 million and $807.6
million recognized in the three months and year ended Dec. 31,
2023, respectively.
Three months ended
Year ended
Dec. 31,
Dec. 31,
(dollars in thousands)
2024
2023
% change
2024
2023
% change
Revenues:
Net interest income
$
363,790
$
317,252
14.7
%
$
1,365,590
$
1,262,118
8.2
%
Noninterest income
111,545
79,088
41.0
%
371,178
433,253
(14.3
)%
Total revenues
475,335
396,340
19.9
%
1,736,768
1,695,371
2.4
%
Noninterest expense
261,897
251,168
4.3
%
1,034,970
887,769
16.6
%
Pre-tax, pre-provision net revenue
(PPNR)
213,438
145,172
47.0
%
701,798
807,602
(13.1
)%
Adjustments:
Investment losses (gains) on sales of
securities, net
(249
)
(14
)
>100.0
%
71,854
19,674
>100
%
Gain on the sale of fixed assets as a
result of sale leaseback
—
—
NM
—
(85,692
)
(100.0
)%
Loss on BOLI restructuring
—
7,166
(100.0
)%
—
7,166
(100.0
)%
Recognition of mortgage servicing
asset
—
—
NM
(11,812
)
—
100.0
%
ORE expense
58
125
(53.6
)%
220
315
(30.2
)%
FDIC special assessment
—
29,000
(100.0
)%
7,250
29,000
(>100.0
%)
Fees related to terminating agreement to
resell securities previously purchased and professional fees
associated with capital optimization initiatives
—
—
NM
28,400
—
100.0
%
Adjusted PPNR
$
213,247
$
181,449
17.5
%
$
797,710
$
778,065
2.5
%
Three months ended
Year ended
Dec. 31, 2024
Sept. 30, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Net interest margin
3.22
%
3.22
%
3.06
%
3.16
%
3.18
%
Efficiency ratio
55.10
%
55.56
%
63.37
%
59.59
%
52.36
%
Return on average assets
1.15
%
1.15
%
0.76
%
0.93
%
1.19
%
Return on average tangible common equity
(TCE)
13.58
%
13.61
%
9.53
%
11.12
%
14.78
%
Average loan to deposit ratio
83.92
%
84.99
%
84.05
%
84.64
%
83.93
%
Net interest income for the fourth quarter of 2024 was $363.8
million, compared to $351.5 million for the third quarter of 2024
and $317.3 million for the fourth quarter of 2023, a year-over-year
growth rate of 14.7 percent. Net interest margin was 3.22 percent
for the fourth quarter of 2024, compared to 3.22 percent for the
third quarter of 2024 and 3.06 percent for the fourth quarter of
2023.
Noninterest income for the fourth quarter of 2024 was $111.5
million, compared to $115.2 million for the third quarter of 2024
and $79.1 million for the fourth quarter of 2023.
Three months ended
Linked-quarter
Annualized %
Change
Three months ended
Yr-over-Yr
% Change
(dollars in thousands)
Dec. 31, 2024
Sept. 30, 2024
Dec. 31, 2023
Noninterest income
$
111,545
$
115,242
(12.8
)%
$
79,088
41.0
%
Less:
Investment losses (gains) on sales of
securities, net
(249
)
—
100.0
%
(14
)
>100.0
%
Loss on BOLI restructuring
—
—
NM
7,166
(100.0
)%
Adjusted noninterest income
$
111,296
$
115,242
(13.7
)%
$
86,240
29.1
%
- Wealth management revenues, which include investment, trust and
insurance services, were $31.2 million for the fourth quarter of
2024, compared to $29.5 million for the third quarter of 2024 and
$23.5 million for the fourth quarter of 2023, a year-over-year
increase of 33.1 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
across the firm, but particularly in the areas of the firm's most
recent strategic market expansions.
- Income from the firm's investment in Banker's Healthcare Group
(BHG) was $12.1 million for the fourth quarter of 2024, compared to
$16.4 million for the third quarter of 2024 and $14.4 million for
the fourth quarter of 2023, a year-over-year decline of 16.4
percent.
- BHG's loan originations were $1.2 billion in the fourth quarter
of 2024, compared to $989 million in the third quarter of 2024 and
$786 million in the fourth quarter of 2023.
- Loans sold to BHG's community bank partners were approximately
$505 million in the fourth quarter of 2024, compared to
approximately $521 million in the third quarter of 2024 and $446
million in the fourth quarter of 2023.
- BHG reserves for on-balance sheet loan losses were $240
million, or 9.3 percent of loans held for investment at Dec. 31,
2024, compared to 9.1 percent at Sept. 30, 2024, and 9.3 percent at
Dec. 31, 2023.
- At Dec. 31, 2024, BHG increased its accrual for estimated
losses attributable to loan substitutions and prepayments to $531
million, or 7.1 percent of the unpaid balances on loans that were
previously purchased by BHG's community bank network, compared to
6.2 percent at Sept. 30, 2024 and 5.4 percent at Dec. 31,
2023.
- Other noninterest income was $50.4 million for the quarter
ended Dec. 31, 2024, an increase of $1.8 million from the third
quarter of 2024 and $22.9 million from the fourth quarter of 2023.
Fourth quarter 2024 other noninterest income was positively
impacted by gains on leases, fair value adjustment to our mortgage
servicing asset and customer swap revenues when compared to third
quarter 2024.
Noninterest expense for the fourth quarter of 2024 was $261.9
million, compared to $259.3 million for the third quarter of 2024
and $251.2 million for the fourth quarter of 2023.
Three months ended
Linked-quarter
Annualized %
Change
Three months ended
Yr-over-Yr
% Change
(dollars in thousands)
Dec. 31, 2024
Sept. 30, 2024
Dec. 31, 2023
Noninterest expense
$
261,897
$
259,319
4.0
%
$
251,168
4.3
%
Less:
ORE expense
58
56
14.3
%
125
(53.6
)%
FDIC special assessment
—
—
NM
29,000
(100.0
)%
Adjusted noninterest expense
$
261,839
$
259,263
4.0
%
$
222,043
17.9
%
- Salaries and employee benefits were $164.7 million in the
fourth quarter of 2024, compared to $160.2 million in the third
quarter of 2024 and $133.3 million in the fourth quarter of 2023,
reflecting a year-over-year increase of 23.5 percent.
- Full-time equivalent associates increased to 3,565.5 at Dec.
31, 2024 from 3,516.5 at Sept. 30, 2024 and 3,357.0 at Dec. 31,
2023, a year-over-year increase of 6.2 percent.
- Cash incentive costs in the fourth quarter of 2024 were
approximately $3.1 million higher than the third quarter of 2024
due to increasing the accrual for the annual cash incentive plan to
a higher payout percentage than was anticipated at Sept. 30, 2024,
and $14.7 million higher than the amounts recorded in the fourth
quarter of 2023. An increased number of personnel and an elevated
payout percentage for 2024 compared to 2023 were the primary
reasons for the year-over-year increase.
- Equipment and occupancy costs were $42.8 million in the fourth
quarter of 2024, compared to $42.6 million in the third quarter of
2024, reflecting an increase of 0.5 percent. Those costs were $38.0
million in the fourth quarter of 2023, resulting in a
year-over-year increase of 12.5 percent.
- Marketing and other business development costs were $8.2
million in the fourth quarter of 2024, compared to $5.6 million in
the third quarter of 2024, reflecting an increase of 45.9 percent.
Those costs were $6.8 million in the fourth quarter of 2023,
resulting in a year-over-year increase of 19.6 percent. Comparing
the fourth quarter of 2024 to the third quarter of 2024 and the
fourth quarter of 2023, several factors contributed to the increase
of marketing and business development costs, including increases in
both client and associate engagement expenses, primarily as a
result of our increased headcount and market expansion.
- Noninterest expense categories, other than those specifically
noted above, were $46.3 million in the fourth quarter of 2024,
compared to $50.9 million in the third quarter of 2024, reflecting
a decrease of 9.1 percent. Those costs were $73.0 million in the
fourth quarter of 2023, resulting in a year-over-year decrease of
36.6 percent. Several factors contributed to the decrease in other
noninterest expense in the fourth quarter of 2024 compared to both
the third quarter of 2024 and fourth quarter of 2023, including
lower accruals relating to both state tax obligations and other
professional fees.
"One of our goals for 2024 was to advance our total revenue
performance with balance sheet growth and robust fee initiatives,"
said Harold R. Carpenter, Pinnacle’s chief financial officer. "We
are reporting $475.3 million in total revenues for the fourth
quarter of 2024, compared to $396.4 in total revenues for the
fourth quarter of 2023, an increase of approximately 19.9 percent.
As we look to 2025, we are optimistic that the effects of a steeper
yield curve should positively impact our results. We also have
increasing confidence that our experienced bankers and advantaged
markets will continue to allow us to attract clients to our firm at
an accelerated pace. Both bode well for our ability to continue the
rapid growth of our revenue base in 2025. We are also keenly
focused on loan and deposit pricing as we enter 2025. Since the
last Fed rate cut in September 2024, through January 16, 2025, our
loan beta performance is approximately 45 percent which is being
outpaced by our deposit beta performance of approximately 58
percent. This is outstanding work by our relationship managers, in
my opinion.
"As to expenses, total expenses for 2024 were approximately $1.0
billion, or $999.1 million after excluding adjustments noted
elsewhere in this release, which is consistent with our outlook as
of the end of last quarter. Contributing to our increased expense
levels for the fourth quarter was an increased accrual at a higher
payout percentage for our cash incentive plan, which stands at an
approximate payout of 98.0 percent of target awards."
CAPITAL, SOUNDNESS AND TAXES:
As of
Dec. 31, 2024
Sept. 30, 2024
Dec. 31, 2023
Shareholders' equity to total assets
12.2
%
12.5
%
12.6
%
Tangible common equity to tangible
assets
8.6
%
8.7
%
8.6
%
Book value per common share
$
80.46
$
79.33
$
75.80
Tangible book value per common share
$
56.24
$
55.12
$
51.38
Annualized net loan charge-offs to avg.
loans (1)
0.24
%
0.21
%
0.17
%
Nonperforming assets to total loans, ORE
and other nonperforming assets (NPAs)
0.42
%
0.35
%
0.27
%
Classified asset ratio (Pinnacle Bank)
(2)
3.79
%
3.92
%
5.22
%
Construction and land development loans as
a percentage of total capital (3)
70.50
%
68.20
%
84.20
%
Construction and land development,
non-owner occupied commercial real estate and multi-family loans as
a percentage of total capital (3)
242.20
%
243.30
%
259.00
%
Allowance for credit losses (ACL) to total
loans
1.17
%
1.14
%
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.
During the fourth quarter of 2024, and to facilitate the orderly
transition of BHG’s decision to exit its Small Business
Administration (SBA) loan program, Pinnacle Bank acquired
approximately $24.0 million in SBA loans from BHG for $10.0
million. Pinnacle assigned $14.1 million in reserves for these
loans in its allowance for credit losses. Approximately $13.6
million of these loans are on nonaccrual status as of Dec. 31,
2024. The transaction increased Pinnacle’s ratio of allowance for
credit losses to total loans by approximately 0.04 basis points and
the ratio of nonaccrual loans to total loans by approximately 0.04
basis points during the fourth quarter.
Additionally, the effective tax rate for the fourth quarter of
2024 decreased to 17.7 percent. This was primarily the result of
reductions in tax reserves for uncertain tax positions that have
been resolved.
BOARD OF DIRECTORS INCREASES COMMON DIVIDENDS
On Jan. 21, 2025, Pinnacle Financial's Board of Directors
increased its quarterly cash dividend to $0.24 per common share to
be paid on Feb. 28, 2025 to common shareholders of record as of the
close of business on Feb. 7, 2025. Additionally, the Board of
Directors approved a quarterly cash dividend of approximately $3.8
million, or $16.88 per share (or $0.422 per depositary share), on
Pinnacle Financial's 6.75 percent Series B Non-Cumulative Perpetual
Preferred Stock payable on March 1, 2025 to shareholders of record
at the close of business on Feb. 14, 2025. The amount and timing of
any future dividend payments to both preferred and common
shareholders will be subject to the approval of Pinnacle's Board of
Directors.
WEBCAST AND CONFERENCE CALL INFORMATION
Pinnacle will host a webcast and conference call at 8:30 a.m. CT
on Jan. 22, 2025, to discuss fourth 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
Nashville-Murfreesboro-Franklin MSA, according to June 30, 2024
deposit data from the FDIC. Pinnacle is No. 11 on the 2024 list of
100 Best Companies to Work For® in the U.S., its eighth consecutive
appearance and was recognized by American Banker as one of
America's Best Banks to Work For 11 years in a row and No. 1 among
banks with more than $10 billion in assets in 2023.
Pinnacle 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 New York State in the small/medium business
category.
The firm began operations in a single location in downtown
Nashville, TN in October 2000 and has since grown to approximately
$52.6 billion in assets as of Dec. 31, 2024. As the second-largest
bank holding company in Tennessee, Pinnacle operates in several
primarily urban markets across the Southeast.
Additional information concerning Pinnacle, which is included in
the Nasdaq Financial-100 Index, can be accessed at
www.pnfp.com.
Forward-Looking Statements
All statements, other than statements of historical fact,
included in this press release, are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. The words "expect,"
"anticipate," "intend," "may," "should," "plan," "looking for,"
"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 the United
States, particularly in commercial and residential real estate
markets; (v) the inability of Pinnacle Financial, or entities in
which it has significant investments, like BHG, to maintain the
long-term historical growth rate of its, or such entities', loan
portfolio; (vi) the ability to grow and retain low-cost core
deposits and retain large, uninsured deposits, including during
times when Pinnacle Bank is seeking to limit the rates it pays on
deposits or uncertainty exists in the financial services sector;
(vii) changes in loan underwriting, credit review or loss reserve
policies associated with economic conditions, examination
conclusions, or regulatory developments; (viii) effectiveness of
Pinnacle Financial's asset management activities in improving,
resolving or liquidating lower-quality assets; (ix) the impact of
competition with other financial institutions, including pricing
pressures and the resulting impact on Pinnacle Financial’s results,
including as a result of the negative impact to net interest margin
from elevated deposit and other funding costs; (x) the results of
regulatory examinations of Pinnacle Financial, Pinnacle Bank or
BHG, or companies with whom they do business; (xi) BHG's ability to
profitably grow its business and successfully execute on its
business plans; (xii) risks of expansion into new geographic or
product markets; (xiii) any matter that would cause Pinnacle
Financial to conclude that there was impairment of any asset,
including goodwill or other intangible assets; (xiv) the
ineffectiveness of Pinnacle Bank's hedging strategies, or the
unexpected counterparty failure or hedge failure of the underlying
hedges; (xv) reduced ability to attract additional financial
advisors (or failure of such advisors to cause their clients to
switch to Pinnacle Bank), to retain financial advisors (including
as a result of the competitive environment for associates) or
otherwise to attract customers from other financial institutions;
(xvi) deterioration in the valuation of other real estate owned and
increased expenses associated therewith; (xvii) inability to comply
with regulatory capital requirements, including those resulting
from changes to capital calculation methodologies, required capital
maintenance levels or regulatory requests or directives,
particularly if Pinnacle Bank's level of applicable commercial real
estate loans were to exceed percentage levels of total capital in
guidelines recommended by its regulators; (xviii) approval of the
declaration of any dividend by Pinnacle Financial's board of
directors; (xix) the vulnerability of Pinnacle Bank's network and
online banking portals, and the systems of parties with whom
Pinnacle Bank contracts, to unauthorized access, computer viruses,
phishing schemes, spam or ransomware attacks, human error, natural
disasters, power loss and other security breaches; (xx) the
possibility of increased compliance and operational costs as a
result of increased regulatory oversight (including by the Consumer
Financial Protection Bureau), including oversight of companies in
which Pinnacle Financial or Pinnacle Bank have significant
investments, like BHG, and the development of additional banking
products for Pinnacle Bank's corporate and consumer clients; (xxi)
Pinnacle Financial's ability to identify potential candidates for,
consummate, and achieve synergies from, potential future
acquisitions; (xxii) difficulties and delays in integrating
acquired businesses or fully realizing costs savings and other
benefits from acquisitions; (xxiii) the risks associated with
Pinnacle Bank being a minority investor in BHG, including the risk
that the owners of a majority of the equity interests in BHG decide
to sell the company or all or a portion of their ownership
interests in BHG (triggering a similar sale by Pinnacle Bank);
(xxiv) changes in state and federal legislation, regulations or
policies applicable to banks and other financial service providers,
like BHG, including regulatory or legislative developments; (xxv)
fluctuations in the valuations of Pinnacle Financial's equity
investments and the ultimate success of such investments; (xxvi)
the availability of and access to capital; (xxvii) adverse results
(including costs, fines, reputational harm, inability to obtain
necessary approvals and/or other negative effects) from current or
future litigation, regulatory examinations or other legal and/or
regulatory actions involving Pinnacle Financial, Pinnacle Bank or
BHG; and (xxviii) general competitive, economic, political and
market conditions. Additional factors which could affect the
forward looking statements can be found in Pinnacle Financial's
Annual Report on Form 10-K for the year ended December 31, 2023,
and subsequently filed Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K filed with the SEC and available on the SEC's
website at http://www.sec.gov. Pinnacle Financial disclaims any
obligation to update or revise any forward-looking statements
contained in this press release, which speak only as of the date
hereof, whether as a result of new information, future events or
otherwise.
Non-GAAP Financial Matters
This release contains certain non-GAAP financial measures,
including, without limitation, total revenues, net income to common
shareholders, earnings per diluted common share, revenue per
diluted common share, PPNR, efficiency ratio, noninterest expense,
noninterest income and the ratio of noninterest expense to average
assets, excluding in certain instances the impact of expenses
related to other real estate owned, gains or losses on sale of
investment securities, gains associated with the sale-leaseback
transaction completed in the second quarter of 2023, losses on the
restructuring of certain 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)
Dec. 31, 2024
Sept. 30, 2024
Dec. 31, 2023
ASSETS
Cash and noninterest-bearing due from
banks
$
320,320
$
276,578
$
228,620
Restricted cash
93,645
193,758
86,873
Interest-bearing due from banks
3,021,960
2,362,828
1,914,856
Cash and cash equivalents
3,435,925
2,833,164
2,230,349
Securities purchased with agreement to
resell
66,449
66,480
558,009
Securities available-for-sale, at fair
value
5,582,369
5,390,988
4,317,530
Securities held-to-maturity (fair value of
$2.6 billion, $2.7 billion and $2.8 billion, net of allowance for
credit losses of $1.7 million, $1.7 million, and $1.7 million at
Dec. 31, 2024, Sept. 30, 2024 and Dec. 31, 2023, respectively)
2,798,899
2,902,253
3,006,357
Consumer loans held-for-sale
175,627
178,600
104,217
Commercial loans held-for-sale
19,700
8,617
9,280
Loans
35,485,776
34,308,310
32,676,091
Less allowance for credit losses
(414,494
)
(391,534
)
(353,055
)
Loans, net
35,071,282
33,916,776
32,323,036
Premises and equipment, net
311,277
295,348
256,877
Equity method investment
436,707
424,637
445,223
Accrued interest receivable
214,080
226,178
217,491
Goodwill
1,849,260
1,846,973
1,846,973
Core deposits and other intangible
assets
21,423
22,755
27,465
Other real estate owned
1,278
750
3,937
Other assets
2,605,173
2,588,369
2,613,139
Total assets
$
52,589,449
$
50,701,888
$
47,959,883
LIABILITIES AND SHAREHOLDERS'
EQUITY
Deposits:
Noninterest-bearing
$
8,170,448
$
8,229,394
$
7,906,502
Interest-bearing
14,125,194
12,615,993
11,365,349
Savings and money market accounts
16,197,397
15,188,270
14,427,206
Time
4,349,953
4,921,231
4,840,753
Total deposits
42,842,992
40,954,888
38,539,810
Securities sold under agreements to
repurchase
230,244
209,956
209,489
Federal Home Loan Bank advances
1,874,134
2,146,395
2,138,169
Subordinated debt and other borrowings
425,821
425,600
424,938
Accrued interest payable
55,619
59,285
66,967
Other liabilities
728,758
561,506
544,722
Total liabilities
46,157,568
44,357,630
41,924,095
Preferred stock, no par value, 10.0
million shares authorized; 225,000 shares non-cumulative perpetual
preferred stock, Series B, liquidation preference $225.0 million,
issued and outstanding at Dec. 31, 2024, Sept. 30, 2024 and Dec.
31, 2023, respectively
217,126
217,126
217,126
Common stock, par value $1.00; 180.0
million shares authorized; 77.2 million, 77.2 million and 76.8
million shares issued and outstanding at Dec. 31, 2024, Sept. 30,
2024 and Dec. 31, 2023, respectively.
77,242
77,232
76,767
Additional paid-in capital
3,129,680
3,120,842
3,109,493
Retained earnings
3,175,777
3,045,571
2,784,927
Accumulated other comprehensive loss, net
of taxes
(167,944
)
(116,513
)
(152,525
)
Total shareholders' equity
6,431,881
6,344,258
6,035,788
Total liabilities and shareholders'
equity
$
52,589,449
$
50,701,888
$
47,959,883
This information is preliminary
and based on company data available at the time of the
presentation.
PINNACLE FINANCIAL PARTNERS, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME –
UNAUDITED
(dollars in thousands, except for share
and per share data)
Three months ended
Year ended
Dec. 31, 2024
Sept. 30, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Interest income:
Loans, including fees
$
557,716
$
570,489
$
530,604
$
2,221,063
$
1,950,365
Securities
Taxable
58,842
65,776
42,458
220,666
140,308
Tax-exempt
24,947
23,860
25,035
97,779
97,625
Federal funds sold and other
42,855
34,740
46,699
158,590
165,070
Total interest income
684,360
694,865
644,796
2,698,098
2,353,368
Interest expense:
Deposits
287,511
310,527
297,556
1,203,455
983,118
Securities sold under agreements to
repurchase
1,182
1,495
1,295
5,392
3,744
FHLB advances and other borrowings
31,877
31,339
28,693
123,661
104,388
Total interest expense
320,570
343,361
327,544
1,332,508
1,091,250
Net interest income
363,790
351,504
317,252
1,365,590
1,262,118
Provision for credit losses
29,652
26,281
16,314
120,589
93,596
Net interest income after provision for
credit losses
334,138
325,223
300,938
1,245,001
1,168,522
Noninterest income:
Service charges on deposit accounts
15,175
16,217
12,660
59,394
49,223
Investment services
19,233
17,868
13,410
67,572
52,432
Insurance sales commissions
2,900
3,286
3,072
13,753
13,670
Gains on mortgage loans sold, net
2,344
2,643
879
11,136
6,511
Investment gains (losses) on sales of
securities, net
249
—
14
(71,854
)
(19,674
)
Trust fees
9,098
8,383
6,987
33,219
26,683
Income from equity method investment
12,070
16,379
14,432
63,172
85,402
Gain on sale of fixed assets
38
1,837
102
2,258
86,048
Other noninterest income
50,438
48,629
27,532
192,528
132,958
Total noninterest income
111,545
115,242
79,088
371,178
433,253
Noninterest expense:
Salaries and employee benefits
164,670
160,234
133,333
621,031
531,828
Equipment and occupancy
42,756
42,564
38,021
166,002
138,980
Other real estate, net
58
56
125
220
315
Marketing and other business
development
8,168
5,599
6,829
26,668
23,914
Postage and supplies
3,178
2,965
2,840
12,049
11,143
Amortization of intangibles
1,544
1,558
1,751
6,254
7,090
Other noninterest expense
41,523
46,343
68,269
202,746
174,499
Total noninterest expense
261,897
259,319
251,168
1,034,970
887,769
Income before income taxes
183,786
181,146
128,858
581,209
714,006
Income tax expense
32,527
34,455
33,879
106,153
151,854
Net income
151,259
146,691
94,979
475,056
562,152
Preferred stock dividends
(3,798
)
(3,798
)
(3,798
)
(15,192
)
(15,192
)
Net income available to common
shareholders
$
147,461
$
142,893
$
91,181
$
459,864
$
546,960
Per share information:
Basic net income per common share
$
1.93
$
1.87
$
1.20
$
6.01
$
7.20
Diluted net income per common share
$
1.91
$
1.86
$
1.19
$
5.96
$
7.14
Weighted average common shares
outstanding:
Basic
76,537,040
76,520,599
76,068,016
76,460,926
76,016,370
Diluted
77,384,742
76,765,586
76,823,991
77,131,330
76,647,543
This information is preliminary
and based on company data available at the time of the
presentation.
PINNACLE FINANCIAL PARTNERS,
INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS'
EQUITY (Unaudited)
(dollars and shares in thousands)
Preferred
Stock
Amount
Common Stock
Additional
Paid-in Capital
Retained
Earnings
Accumulated Other
Comp. Income
(Loss), net
Total
Shareholders'
Equity
Shares
Amounts
Balance at December 31, 2022
$
217,126
76,454
$
76,454
$
3,074,867
$
2,341,706
$
(190,761
)
$
5,519,392
Cumulative change due to accounting
pronouncement
—
—
—
—
(35,002
)
—
(35,002
)
Exercise of employee common stock options
& related tax benefits
—
40
40
931
—
—
971
Preferred dividends paid ($67.52 per
share)
—
—
—
—
(15,192
)
—
(15,192
)
Common dividends paid ($0.88 per
share)
—
—
—
—
(68,737
)
(68,737
)
Issuance of restricted common shares
—
269
269
(269
)
—
—
—
Forfeiture of restricted common shares
—
(34
)
(34
)
34
—
—
—
Restricted shares withheld for taxes &
related tax benefits
—
(59
)
(59
)
(4,127
)
—
—
(4,186
)
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
—
97
97
(3,822
)
—
—
(3,725
)
Compensation expense for restricted shares
& performance stock units
—
—
—
41,879
—
—
41,879
Net income
—
—
—
—
562,152
—
562,152
Other comprehensive gain
—
—
—
—
—
38,236
38,236
Balance at December 31, 2023
$
217,126
76,767
$
76,767
$
3,109,493
$
2,784,927
$
(152,525
)
$
6,035,788
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 ($67.52 per
share)
—
—
—
—
(15,192
)
—
(15,192
)
Common dividends paid ($0.88 per
share)
—
—
—
—
(69,014
)
—
(69,014
)
Issuance of restricted common shares
—
262
262
(262
)
—
—
—
Forfeiture of restricted common shares
—
(30
)
(30
)
30
—
—
—
Restricted shares withheld for taxes &
related tax benefits
—
(68
)
(68
)
(5,774
)
—
—
(5,842
)
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
—
—
—
40,934
—
—
40,934
Net income
—
—
—
—
475,056
—
475,056
Other comprehensive loss
—
—
—
—
—
(15,419
)
(15,419
)
Balance at December 31, 2024
$
217,126
77,242
$
77,242
$
3,129,680
$
3,175,777
$
(167,944
)
$
6,431,881
PINNACLE FINANCIAL PARTNERS, INC. AND
SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA –
UNAUDITED
(dollars in thousands)
December
September
June
March
December
September
2024
2024
2024
2024
2023
2023
Balance sheet data, at quarter
end:
Commercial and industrial loans
$
13,815,817
12,986,865
12,328,622
11,893,198
11,666,691
11,307,611
Commercial real estate - owner occupied
loans
4,388,531
4,264,743
4,217,351
4,044,973
4,044,896
3,944,616
Commercial real estate - investment
loans
5,931,420
5,919,235
5,998,326
6,138,711
5,929,595
5,957,426
Commercial real estate - multifamily and
other loans
2,198,698
2,213,153
2,185,858
1,924,931
1,605,899
1,490,184
Consumer real estate - mortgage loans
4,914,482
4,907,766
4,874,846
4,828,416
4,851,531
4,768,780
Construction and land development
loans
3,699,321
3,486,504
3,621,563
3,818,334
4,041,081
3,942,143
Consumer and other loans
537,507
530,044
542,584
514,310
536,398
532,524
Total loans
35,485,776
34,308,310
33,769,150
33,162,873
32,676,091
31,943,284
Allowance for credit losses
(414,494
)
(391,534
)
(381,601
)
(371,337
)
(353,055
)
(346,192
)
Securities
8,381,268
8,293,241
7,882,891
7,371,847
7,323,887
6,882,276
Total assets
52,589,449
50,701,888
49,366,969
48,894,196
47,959,883
47,523,790
Noninterest-bearing deposits
8,170,448
8,229,394
7,932,882
7,958,739
7,906,502
8,324,325
Total deposits
42,842,992
40,954,888
39,770,380
39,402,025
38,539,810
38,295,809
Securities sold under agreements to
repurchase
230,244
209,956
220,885
201,418
209,489
195,999
FHLB advances
1,874,134
2,146,395
2,110,885
2,116,417
2,138,169
2,110,598
Subordinated debt and other borrowings
425,821
425,600
425,380
425,159
424,938
424,718
Total shareholders' equity
6,431,881
6,344,258
6,174,668
6,103,851
6,035,788
5,837,641
Balance sheet data, quarterly
averages:
Total loans
$
34,980,900
34,081,759
33,516,804
33,041,954
32,371,506
31,529,854
Securities
8,268,583
8,176,250
7,322,588
7,307,201
6,967,488
6,801,285
Federal funds sold and other
3,153,751
2,601,267
3,268,307
3,274,062
3,615,908
4,292,956
Total earning assets
46,403,234
44,859,276
44,107,699
43,623,217
42,954,902
42,624,095
Total assets
51,166,643
49,535,543
48,754,091
48,311,260
47,668,519
47,266,199
Noninterest-bearing deposits
8,380,760
8,077,655
8,000,159
7,962,217
8,342,572
8,515,733
Total deposits
41,682,341
40,101,199
39,453,828
38,995,709
38,515,560
38,078,665
Securities sold under agreements to
repurchase
223,162
230,340
213,252
210,888
202,601
184,681
FHLB advances
2,006,736
2,128,793
2,106,786
2,214,489
2,112,809
2,132,638
Subordinated debt and other borrowings
427,503
427,380
427,256
428,281
426,999
426,855
Total shareholders' equity
6,405,867
6,265,710
6,138,722
6,082,616
5,889,075
5,898,196
Statement of operations data, for the
three months ended:
Interest income
$
684,360
694,865
668,390
650,483
644,796
627,294
Interest expense
320,570
343,361
336,128
332,449
327,544
310,052
Net interest income
363,790
351,504
332,262
318,034
317,252
317,242
Provision for credit losses
29,652
26,281
30,159
34,497
16,314
26,826
Net interest income after provision for
credit losses
334,138
325,223
302,103
283,537
300,938
290,416
Noninterest income
111,545
115,242
34,288
110,103
79,088
90,797
Noninterest expense
261,897
259,319
271,389
242,365
251,168
213,233
Income before income taxes
183,786
181,146
65,002
151,275
128,858
167,980
Income tax expense
32,527
34,455
11,840
27,331
33,879
35,377
Net income
151,259
146,691
53,162
123,944
94,979
132,603
Preferred stock dividends
(3,798
)
(3,798
)
(3,798
)
(3,798
)
(3,798
)
(3,798
)
Net income available to common
shareholders
$
147,461
142,893
49,364
120,146
91,181
128,805
Profitability and other ratios:
Return on avg. assets (1)
1.15
%
1.15
%
0.41
%
1.00
%
0.76
%
1.08
%
Return on avg. equity (1)
9.16
%
9.07
%
3.23
%
7.94
%
6.14
%
8.66
%
Return on avg. common equity (1)
9.48
%
9.40
%
3.35
%
8.24
%
6.38
%
9.00
%
Return on avg. tangible common equity
(1)
13.58
%
13.61
%
4.90
%
12.11
%
9.53
%
13.43
%
Common stock dividend payout ratio
(14)
14.72
%
16.73
%
17.29
%
12.59
%
12.26
%
11.35
%
Net interest margin (2)
3.22
%
3.22
%
3.14
%
3.04
%
3.06
%
3.06
%
Noninterest income to total revenue
(3)
23.47
%
24.69
%
9.35
%
25.72
%
19.95
%
22.25
%
Noninterest income to avg. assets (1)
0.87
%
0.93
%
0.28
%
0.92
%
0.66
%
0.76
%
Noninterest exp. to avg. assets (1)
2.04
%
2.08
%
2.24
%
2.02
%
2.09
%
1.79
%
Efficiency ratio (4)
55.10
%
55.56
%
74.04
%
56.61
%
63.37
%
52.26
%
Avg. loans to avg. deposits
83.92
%
84.99
%
84.95
%
84.73
%
84.05
%
82.80
%
Securities to total assets
15.94
%
16.36
%
15.97
%
15.08
%
15.27
%
14.48
%
This information is preliminary
and based on company data available at the time of the
presentation.
PINNACLE FINANCIAL PARTNERS, INC. AND
SUBSIDIARIES
ANALYSIS OF INTEREST INCOME AND
EXPENSE, RATES AND YIELDS-UNAUDITED
(dollars in thousands)
Three months ended
Three months ended
December 31, 2024
December 31, 2023
Average
Balances
Interest
Rates/
Yields
Average
Balances
Interest
Rates/
Yields
Interest-earning assets
Loans (1) (2)
$
34,980,900
$
557,716
6.42
%
$
32,371,506
$
530,604
6.62
%
Securities
Taxable
4,953,134
58,842
4.73
%
3,801,278
42,458
4.43
%
Tax-exempt (2)
3,315,449
24,947
3.58
%
3,166,210
25,035
3.74
%
Interest-bearing due from banks
2,819,891
36,135
5.10
%
2,876,213
39,761
5.48
%
Resell agreements
75,583
1,697
8.93
%
507,368
3,216
2.51
%
Federal funds sold
—
—
—
%
—
—
—
%
Other
258,277
5,023
7.74
%
232,327
3,722
6.36
%
Total interest-earning assets
46,403,234
$
684,360
5.97
%
42,954,902
$
644,796
6.09
%
Nonearning assets
Intangible assets
1,870,051
1,875,546
Other nonearning assets
2,893,358
2,838,071
Total assets
$
51,166,643
$
47,668,519
Interest-bearing liabilities
Interest-bearing deposits:
Interest checking
13,162,542
113,704
3.44
%
10,821,528
106,368
3.90
%
Savings and money market
15,654,866
125,760
3.20
%
14,455,770
137,330
3.77
%
Time
4,484,173
48,047
4.26
%
4,895,690
53,858
4.36
%
Total interest-bearing deposits
33,301,581
287,511
3.43
%
30,172,988
297,556
3.91
%
Securities sold under agreements to
repurchase
223,162
1,182
2.11
%
202,601
1,295
2.54
%
Federal Home Loan Bank advances
2,006,736
23,159
4.59
%
2,112,809
22,674
4.26
%
Subordinated debt and other borrowings
427,503
8,718
8.11
%
426,999
6,019
5.59
%
Total interest-bearing liabilities
35,958,982
320,570
3.55
%
32,915,397
327,544
3.95
%
Noninterest-bearing deposits
8,380,760
—
—
8,342,572
—
—
Total deposits and interest-bearing
liabilities
44,339,742
$
320,570
2.88
%
41,257,969
$
327,544
3.15
%
Other liabilities
421,034
521,475
Shareholders' equity
6,405,867
5,889,075
Total liabilities and shareholders'
equity
$
51,166,643
$
47,668,519
Net interest
income
$
363,790
$
317,252
Net interest spread (3)
2.42
%
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 $12.1 million of
taxable equivalent income for the three months ended Dec. 31, 2024
compared to $14.5 million for the three months ended Dec. 31, 2023.
The tax-exempt benefit has been reduced by the projected impact of
tax-exempt income that will be disallowed pursuant to IRS
Regulations as of and for the then current period presented.
(3) Yields realized on interest-bearing
assets less the rates paid on interest-bearing liabilities. The net
interest spread calculation excludes the impact of demand deposits.
Had the impact of demand deposits been included, the net interest
spread for the three months ended Dec. 31, 2024 would have been
3.09% compared to a net interest spread of 2.94% for the three
months ended Dec. 31, 2023.
(4) Net interest margin is the result of
annualized net interest income calculated on a tax equivalent basis
divided by average interest-earning assets for the period.
This information is preliminary and based
on company data available at the time of the presentation.
PINNACLE FINANCIAL PARTNERS, INC. AND
SUBSIDIARIES
ANALYSIS OF INTEREST INCOME AND
EXPENSE, RATES AND YIELDS-UNAUDITED
(dollars in thousands)
Year ended
Year ended
December 31, 2024
December 31, 2023
Average
Balances
Interest
Rates/
Yields
Average
Balances
Interest
Rates/
Yields
Interest-earning assets
Loans (1) (2)
$
33,908,775
$
2,221,063
6.64
%
$
31,112,968
$
1,950,365
6.36
%
Securities
Taxable
4,487,037
220,666
4.92
%
3,562,527
140,308
3.94
%
Tax-exempt (2)
3,284,099
97,779
3.55
%
3,252,030
97,625
3.58
%
Interest-bearing due from banks
2,533,184
132,199
5.22
%
2,611,506
140,036
5.36
%
Resell agreements
285,356
10,669
3.74
%
508,190
13,176
2.59
%
Federal funds sold
—
—
—
%
—
—
—
%
Other
254,731
15,722
6.17
%
227,147
11,858
5.22
%
Total interest-earning assets
44,753,182
$
2,698,098
6.14
%
41,274,368
$
2,353,368
5.82
%
Nonearning assets
Intangible assets
1,871,723
1,878,204
Other nonearning assets
2,821,948
2,696,900
Total assets
$
49,446,853
$
45,849,472
Interest-bearing liabilities
Interest-bearing deposits:
Interest checking
12,309,946
465,862
3.78
%
9,565,965
333,631
3.49
%
Savings and money market
14,928,631
530,100
3.55
%
14,162,523
473,327
3.34
%
Time
4,720,595
207,493
4.40
%
4,606,756
176,160
3.82
%
Total interest-bearing deposits
31,959,172
1,203,455
3.77
%
28,335,244
983,118
3.47
%
Securities sold under agreements to
repurchase
219,451
5,392
2.46
%
192,132
3,744
1.95
%
Federal Home Loan Bank advances
2,113,947
96,602
4.57
%
1,935,204
80,958
4.18
%
Subordinated debt and other borrowings
427,604
27,059
6.33
%
426,784
23,430
5.49
%
Total interest-bearing liabilities
34,720,174
1,332,508
3.84
%
30,889,364
1,091,250
3.53
%
Noninterest-bearing deposits
8,103,652
—
—
8,736,843
—
—
Total deposits and interest-bearing
liabilities
42,823,826
$
1,332,508
3.11
%
39,626,207
$
1,091,250
2.75
%
Other liabilities
399,183
428,348
Shareholders' equity
6,223,844
5,794,917
Total liabilities and shareholders'
equity
$
49,446,853
$
45,849,472
Net interest
income
$
1,365,590
$
1,262,118
Net interest spread (3)
2.30
%
2.29
%
Net interest margin (4)
3.16
%
3.18
%
(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 $47.7 million of
taxable equivalent income for the year ended Dec. 31, 2024 compared
to $48.5 million for the year ended Dec. 31, 2023. The tax-exempt
benefit has been reduced by the projected impact of tax-exempt
income that will be disallowed pursuant to IRS Regulations as of
and for the then current period presented.
(3) Yields realized on interest-bearing
assets less the rates paid on interest-bearing liabilities. The net
interest spread calculation excludes the impact of demand deposits.
Had the impact of demand deposits been included, the net interest
spread for the year ended Dec. 31, 2024 would have been 3.02%
compared to a net interest spread of 3.07% for the year ended Dec.
31, 2023.
(4) Net interest margin is the result of
annualized net interest income calculated on a tax equivalent basis
divided by average interest-earning assets for the period.
This information is preliminary and based
on company data available at the time of the presentation.
PINNACLE FINANCIAL PARTNERS, INC. AND
SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA –
UNAUDITED
(dollars in thousands)
December
September
June
March
December
September
2024
2024
2024
2024
2023
2023
Asset quality information and
ratios:
Nonperforming assets:
Nonaccrual loans
$
147,825
119,293
97,649
108,325
82,288
42,950
ORE and other nonperforming assets
(NPAs)
1,280
823
2,760
2,766
4,347
3,019
Total nonperforming assets
$
149,105
120,116
100,409
111,091
86,635
45,969
Past due loans over 90 days and still
accruing interest
$
3,515
3,611
4,057
5,273
6,004
4,969
Accruing purchase credit deteriorated
loans
$
13,877
5,715
6,021
6,222
6,501
7,010
Net loan charge-offs
$
20,807
18,348
22,895
16,215
13,451
18,093
Allowance for credit losses to nonaccrual
loans
280.4
%
328.2
%
390.8
%
342.8
%
429.0
%
806.0
%
As a percentage of total loans:
Past due accruing loans over 30 days
0.15
%
0.16
%
0.16
%
0.17
%
0.23
%
0.16
%
Potential problem loans
0.13
%
0.14
%
0.18
%
0.28
%
0.39
%
0.42
%
Allowance for credit losses
1.17
%
1.14
%
1.13
%
1.12
%
1.08
%
1.08
%
Nonperforming assets to total loans, ORE
and other NPAs
0.42
%
0.35
%
0.30
%
0.33
%
0.27
%
0.14
%
Classified asset ratio (Pinnacle Bank)
(6)
3.8
%
3.9
%
4.0
%
4.9
%
5.2
%
4.6
%
Annualized net loan charge-offs to avg.
loans (5)
0.24
%
0.21
%
0.27
%
0.20
%
0.17
%
0.23
%
Interest rates and yields:
Loans
6.42
%
6.75
%
6.71
%
6.67
%
6.62
%
6.50
%
Securities
4.27
%
4.58
%
4.43
%
4.06
%
4.12
%
3.81
%
Total earning assets
5.97
%
6.27
%
6.20
%
6.11
%
6.09
%
5.95
%
Total deposits, including non-interest
bearing
2.74
%
3.08
%
3.10
%
3.10
%
3.07
%
2.92
%
Securities sold under agreements to
repurchase
2.11
%
2.58
%
2.48
%
2.67
%
2.54
%
2.30
%
FHLB advances
4.59
%
4.66
%
4.66
%
4.38
%
4.26
%
4.22
%
Subordinated debt and other borrowings
8.11
%
5.97
%
5.62
%
5.60
%
5.59
%
5.54
%
Total deposits and interest-bearing
liabilities
2.88
%
3.19
%
3.20
%
3.20
%
3.15
%
3.01
%
Capital and other ratios (6):
Pinnacle Financial ratios:
Shareholders' equity to total assets
12.2
%
12.5
%
12.5
%
12.5
%
12.6
%
12.3
%
Common equity Tier one
10.8
%
10.8
%
10.7
%
10.4
%
10.3
%
10.3
%
Tier one risk-based
11.3
%
11.4
%
11.2
%
10.9
%
10.8
%
10.9
%
Total risk-based
13.1
%
13.2
%
13.2
%
12.9
%
12.7
%
12.8
%
Leverage
9.6
%
9.6
%
9.5
%
9.5
%
9.4
%
9.4
%
Tangible common equity to tangible
assets
8.6
%
8.7
%
8.6
%
8.5
%
8.6
%
8.2
%
Pinnacle Bank ratios:
Common equity Tier one
11.6
%
11.7
%
11.5
%
11.3
%
11.1
%
11.2
%
Tier one risk-based
11.6
%
11.7
%
11.5
%
11.3
%
11.1
%
11.2
%
Total risk-based
12.5
%
12.6
%
12.5
%
12.2
%
12.0
%
12.0
%
Leverage
9.8
%
9.8
%
9.7
%
9.7
%
9.7
%
9.7
%
Construction and land development loans as
a percentage of total capital (17)
70.5
%
68.2
%
72.9
%
77.5
%
84.2
%
83.1
%
Non-owner occupied commercial real estate
and multi-family as a percentage of total capital (17)
242.2
%
243.3
%
254.0
%
258.0
%
259.0
%
256.4
%
This information is preliminary and based
on company data available at the time of the presentation.
PINNACLE FINANCIAL PARTNERS, INC. AND
SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA –
UNAUDITED
(dollars in thousands, except per share
data)
December
September
June
March
December
September
2024
2024
2024
2024
2023
2023
Per share data:
Earnings per common share – basic
$
1.93
1.87
0.65
1.58
1.20
1.69
Earnings per common share - basic,
excluding non-GAAP adjustments
$
1.92
1.87
1.63
1.54
1.70
1.79
Earnings per common share – diluted
$
1.91
1.86
0.64
1.57
1.19
1.69
Earnings per common share - diluted,
excluding non-GAAP adjustments
$
1.90
1.86
1.63
1.53
1.68
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)
$
80.46
79.33
77.15
76.23
75.80
73.23
Tangible book value per common share at
quarter end (7)
$
56.24
55.12
52.92
51.98
51.38
48.78
Revenue per diluted common share
$
6.14
6.08
4.78
5.60
5.16
5.35
Revenue per diluted common share,
excluding non-GAAP adjustments
$
6.14
6.08
5.72
5.45
5.25
5.48
Investor information:
Closing sales price of common stock on
last trading day of quarter
$
114.39
97.97
80.04
85.88
87.22
67.04
High closing sales price of common stock
during quarter
$
129.87
100.56
84.70
91.82
89.34
75.95
Low closing sales price of common stock
during quarter
$
92.95
76.97
74.62
79.26
60.77
56.41
Closing sales price of depositary shares
on last trading day of quarter
$
24.23
24.39
23.25
23.62
22.60
22.70
High closing sales price of depositary
shares during quarter
$
25.02
24.50
23.85
24.44
23.65
23.85
Low closing sales price of depositary
shares during quarter
$
24.23
23.25
22.93
22.71
21.00
21.54
Other information:
Residential mortgage loan sales:
Gross loans sold
$
185,707
209,144
217,080
148,576
142,556
198,247
Gross fees (8)
$
4,360
4,974
5,368
3,540
3,191
4,350
Gross fees as a percentage of loans
originated
2.35
%
2.38
%
2.47
%
2.38
%
2.24
%
2.19
%
Net gain on residential mortgage loans
sold
$
2,344
2,643
3,270
2,879
879
2,012
Investment gains (losses) on sales of
securities, net (13)
$
249
—
(72,103
)
—
14
(9,727
)
Brokerage account assets, at quarter end
(9)
$
13,086,359
12,791,337
11,917,578
10,756,108
9,810,457
9,041,716
Trust account managed assets, at quarter
end
$
7,061,868
6,830,323
6,443,916
6,297,887
5,530,495
5,047,128
Core deposits (10)
$
38,046,904
35,764,640
34,957,827
34,638,610
33,738,917
33,606,783
Core deposits to total funding (10)
83.9
%
81.8
%
82.2
%
82.2
%
81.7
%
81.9
%
Risk-weighted assets
$
41,976,450
40,530,585
39,983,191
40,531,311
40,205,295
39,527,086
Number of offices
137
136
135
128
128
128
Total core deposits per office
$
277,715
262,975
258,947
270,614
263,585
262,553
Total assets per full-time equivalent
employee
$
14,750
14,418
14,231
14,438
14,287
14,274
Annualized revenues per full-time
equivalent employee
$
530.4
528.0
425.0
508.5
468.4
486.2
Annualized expenses per full-time
equivalent employee
$
292.2
293.4
314.6
287.8
296.8
254.1
Number of employees (full-time
equivalent)
3,565.5
3,516.5
3,469.0
3,386.5
3,357.0
3,329.5
Associate retention rate (11)
94.5
%
94.6
%
94.4
%
94.2
%
94.2
%
93.6
%
This information is preliminary and based
on company data available at the time of the presentation.
PINNACLE FINANCIAL PARTNERS, INC. AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP SELECTED
QUARTERLY FINANCIAL DATA – UNAUDITED
Three months ended
Year ended
(dollars in thousands, except per share
data)
December
September
December
December
December
2024
2024
2023
2024
2023
Net interest income
$
363,790
351,504
317,252
1,365,590
1,262,118
Noninterest income
111,545
115,242
79,088
371,178
433,253
Total revenues
475,335
466,746
396,340
1,736,768
1,695,371
Less: Investment losses (gains) on sales
of securities, net
(249
)
—
(14
)
71,854
19,674
Gain on sale of fixed assets as a result
of sale-leaseback transaction
—
—
—
—
(85,692
)
Loss on BOLI restructuring
—
—
7,166
—
7,166
Recognition of mortgage servicing
asset
—
—
—
(11,812
)
—
Total revenues excluding the impact of
adjustments noted above
$
475,086
466,746
403,492
1,796,810
1,636,519
Noninterest expense
$
261,897
259,319
251,168
1,034,970
887,769
Less: ORE expense
58
56
125
220
315
FDIC special assessment
—
—
29,000
7,250
29,000
Fees related to terminating agreement to
resell securities previously purchased and professional fees
associated with capital optimization initiatives
—
—
—
28,400
—
Noninterest expense excluding the impact
of adjustments noted above
$
261,839
259,263
222,043
999,100
858,454
Pre-tax income
$
183,786
181,146
128,858
581,209
714,006
Provision for credit losses
29,652
26,281
16,314
120,589
93,596
Pre-tax pre-provision net revenue
213,438
207,427
145,172
701,798
807,602
Less: Adjustments noted above
(191
)
56
36,277
95,912
(29,537
)
Adjusted pre-tax pre-provision net revenue
(12)
$
213,247
207,483
181,449
797,710
778,065
Noninterest income
$
111,545
115,242
79,088
371,178
433,253
Less: Adjustments noted above
(249
)
—
7,152
60,042
(58,852
)
Noninterest income excluding the impact of
adjustments noted above
$
111,296
115,242
86,240
431,220
374,401
Efficiency ratio (4)
55.10
%
55.56
%
63.37
%
59.59
%
52.36
%
Adjustments noted above
0.01
%
(0.01
)%
(8.34
)%
(3.99
)%
0.10
%
Efficiency ratio excluding adjustments
noted above (4)
55.11
%
55.55
%
55.03
%
55.60
%
52.46
%
Total average assets
$
51,166,643
49,535,543
47,668,519
49,446,853
45,849,472
Noninterest income to average assets
(1)
0.87
%
0.93
%
0.66
%
0.75
%
0.94
%
Less: Adjustments noted above
—
%
—
%
0.06
%
0.12
%
(0.12
)%
Noninterest income (excluding adjustments
noted above) to average assets (1)
0.87
%
0.93
%
0.72
%
0.87
%
0.82
%
Noninterest expense to average assets
(1)
2.04
%
2.08
%
2.09
%
2.09
%
1.94
%
Adjustments as noted above
—
%
—
%
(0.24
)%
(0.07
)%
(0.07
)%
Noninterest expense (excluding adjustments
noted above) to average assets (1)
2.04
%
2.08
%
1.85
%
2.02
%
1.87
%
This information is preliminary and based
on company data available at the time of the presentation.
PINNACLE FINANCIAL PARTNERS, INC. AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP SELECTED
QUARTERLY FINANCIAL DATA – UNAUDITED
Three months ended
(dollars in thousands, except per share
data)
December
September
June
March
December
September
2024
2024
2024
2024
2023
2023
Net income available to common
shareholders
$
147,461
142,893
49,364
120,146
91,181
128,805
Investment (gains) losses on sales of
securities, net
(249
)
—
72,103
—
(14
)
9,727
Loss on BOLI restructuring
—
—
—
—
16,252
—
ORE expense
58
56
22
84
125
33
FDIC special assessment
—
—
—
7,250
29,000
—
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)
48
(14
)
(25,131
)
1,120
(7,278
)
(2,440
)
Net income available to common
shareholders excluding adjustments noted above
$
147,318
142,935
124,758
116,788
129,266
136,125
Basic earnings per common share
$
1.93
1.87
0.65
1.58
1.20
1.69
Less:
Investment (gains) losses on sales of
securities, net
(0.01
)
—
0.94
—
—
0.13
Loss on BOLI restructuring
—
—
—
—
0.21
—
ORE expense
—
—
—
—
—
—
FDIC special assessment
—
—
—
0.10
0.38
—
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
)
Basic earnings per common share excluding
adjustments noted above
$
1.92
1.87
1.63
1.54
1.70
1.79
Diluted earnings per common share
$
1.91
1.86
0.64
1.57
1.19
1.69
Less:
Investment (gains) losses on sales of
securities, net
(0.01
)
—
0.94
—
—
0.13
Gain on sale of fixed assets as a result
of sale-leaseback transaction
—
—
—
—
—
—
Loss on BOLI restructuring
—
—
—
0.10
0.21
—
ORE expense
—
—
—
—
—
—
FDIC special assessment
—
—
—
—
0.38
—
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
)
Diluted earnings per common share
excluding the adjustments noted above
$
1.90
1.86
1.63
1.53
1.68
1.79
Revenue per diluted common share
$
6.14
6.08
4.78
5.60
5.16
5.35
Adjustments due to revenue-impacting items
as noted above
—
—
0.94
(0.15
)
0.09
0.13
Revenue per diluted common share excluding
adjustments due to revenue-impacting items as noted above
$
6.14
6.08
5.72
5.45
5.25
5.48
Book value per common share at quarter end
(7)
$
80.46
79.33
77.15
76.23
75.80
73.23
Adjustment due to goodwill, core deposit
and other intangible assets
(24.22
)
(24.21
)
(24.23
)
(24.25
)
(24.42
)
(24.45
)
Tangible book value per common share at
quarter end (7)
$
56.24
55.12
52.92
51.98
51.38
48.78
Equity method investment (15)
Fee income from BHG, net of
amortization
$
12,070
16,379
18,688
16,035
14,432
24,967
Funding cost to support investment
4,869
5,762
5,704
5,974
5,803
6,546
Pre-tax impact of BHG
7,201
10,617
12,984
10,061
8,629
18,421
Income tax expense at statutory rates
(16)
1,800
2,654
3,246
2,515
2,157
4,605
Earnings attributable to BHG
$
5,401
7,963
9,738
7,546
6,472
13,816
Basic earnings per common share
attributable to BHG
$
0.07
0.10
0.13
0.10
0.09
0.18
Diluted earnings per common share
attributable to BHG
$
0.07
0.10
0.13
0.10
0.08
0.18
This information is preliminary and based
on company data available at the time of the presentation.
PINNACLE FINANCIAL PARTNERS, INC. AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP SELECTED
QUARTERLY FINANCIAL DATA – UNAUDITED
Year ended
(dollars in thousands, except per share
data)
December 31,
2024
2023
Net income available to common
shareholders
$
459,864
546,960
Investment losses on sales of securities,
net
71,854
19,674
Gain on sale of fixed assets as a result
of sale-leaseback transaction
—
(85,692
)
Loss on BOLI restructuring
—
16,252
ORE expense
220
315
FDIC special assessment
7,250
29,000
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)
(23,978
)
9,176
Net income available to common
shareholders excluding adjustments noted above
$
531,798
535,685
Basic earnings per common share
$
6.01
7.20
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
—
(1.12
)
Loss on BOLI restructuring
—
0.21
ORE expense
—
—
FDIC special assessment
0.10
0.38
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
)
0.12
Basic earnings per common share excluding
adjustments noted above
$
6.96
7.05
Diluted earnings per common share
5.96
7.14
Less:
Investment losses on sales of securities,
net
0.93
0.26
Gain on sale of fixed assets as a result
of sale-leaseback transaction
—
(1.12
)
Loss on BOLI restructuring
—
0.21
ORE expense
—
—
FDIC special assessment
0.09
0.38
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
)
0.12
Diluted earnings per common share
excluding the adjustments noted above
$
6.89
6.99
Revenue per diluted common share
$
22.52
22.12
Adjustments due to revenue-impacting items
as noted above
0.78
(0.77
)
Revenue per diluted common share excluding
adjustments due to revenue-impacting items noted above
$
23.30
21.35
Equity method investment (15)
Fee income from BHG, net of
amortization
$
63,172
85,402
Funding cost to support investment
19,777
23,430
Pre-tax impact of BHG
43,395
61,972
Income tax expense at statutory rates
(16)
10,849
15,493
Earnings attributable to BHG
$
32,546
46,479
Basic earnings per common share
attributable to BHG
$
0.43
0.61
Diluted earnings per common share
attributable to BHG
$
0.42
0.61
This information is preliminary and based
on company data available at the time of the presentation.
PINNACLE FINANCIAL PARTNERS, INC. AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP SELECTED
QUARTERLY FINANCIAL DATA – UNAUDITED
Three months ended
Year ended
(dollars in thousands, except per share
data)
December
September
December
December
December
2024
2024
2023
2024
2023
Return on average assets (1)
1.15
%
1.15
%
0.76
%
0.93
%
1.19
%
Adjustments as noted above
—
%
—
%
0.32
%
0.15
%
(0.02
)%
Return on average assets excluding
adjustments noted above (1)
1.15
%
1.15
%
1.08
%
1.08
%
1.17
%
Tangible assets:
Total assets
$
52,589,449
50,701,888
47,959,883
$
52,589,449
47,959,883
Less: Goodwill
(1,849,260
)
(1,846,973
)
(1,846,973
)
(1,849,260
)
(1,846,973
)
Core deposit and other intangible
assets
(21,423
)
(22,755
)
(27,465
)
(21,423
)
(27,465
)
Net tangible assets
$
50,718,766
48,832,160
46,085,445
$
50,718,766
46,085,445
Tangible common equity:
Total shareholders' equity
$
6,431,881
6,344,258
6,035,788
$
6,431,881
6,035,788
Less: Preferred shareholders' equity
(217,126
)
(217,126
)
(217,126
)
(217,126
)
(217,126
)
Total common shareholders' equity
6,214,755
6,127,132
5,818,662
6,214,755
5,818,662
Less: Goodwill
(1,849,260
)
(1,846,973
)
(1,846,973
)
(1,849,260
)
(1,846,973
)
Core deposit and other intangible
assets
(21,423
)
(22,755
)
(27,465
)
(21,423
)
(27,465
)
Net tangible common equity
$
4,344,072
4,257,404
3,944,224
$
4,344,072
3,944,224
Ratio of tangible common equity to
tangible assets
8.57
%
8.72
%
8.56
%
8.57
%
8.56
%
Average tangible assets:
Average assets
$
51,166,643
49,535,543
47,668,519
$
49,446,853
45,849,472
Less: Average goodwill
(1,846,998
)
(1,846,973
)
(1,846,973
)
(1,846,979
)
(1,846,973
)
Average core deposit and other intangible
assets
(23,054
)
(23,746
)
(28,573
)
(24,744
)
(31,231
)
Net average tangible assets
$
49,296,591
47,664,824
45,792,973
$
47,575,130
43,971,268
Return on average assets (1)
1.15
%
1.15
%
0.76
%
0.93
%
1.19
%
Adjustment due to goodwill, core deposit
and other intangible assets
0.04
%
0.04
%
0.03
%
0.04
%
0.05
%
Return on average tangible assets (1)
1.19
%
1.19
%
0.79
%
0.97
%
1.24
%
Adjustments as noted above
—
%
—
%
0.33
%
0.15
%
(0.02
)%
Return on average tangible assets
excluding adjustments noted above (1)
1.19
%
1.19
%
1.12
%
1.12
%
1.22
%
Average tangible common equity:
Average shareholders' equity
$
6,405,867
6,265,710
5,889,075
$
6,223,844
5,794,917
Less: Average preferred equity
(217,126
)
(217,126
)
(217,126
)
(217,126
)
(217,126
)
Average common equity
6,188,741
6,048,584
5,671,949
6,006,718
5,577,791
Less: Average goodwill
(1,846,998
)
(1,846,973
)
(1,846,973
)
(1,846,979
)
(1,846,973
)
Average core deposit and other intangible
assets
(23,054
)
(23,746
)
(28,573
)
(24,744
)
(31,231
)
Net average tangible common equity
$
4,318,689
4,177,865
3,796,403
$
4,134,995
3,699,587
Return on average equity (1)
9.16
%
9.07
%
6.14
%
7.39
%
9.44
%
Adjustment due to average preferred
shareholders' equity
0.32
%
0.33
%
0.24
%
0.27
%
0.37
%
Return on average common equity (1)
9.48
%
9.40
%
6.38
%
7.66
%
9.81
%
Adjustment due to goodwill, core deposit
and other intangible assets
4.10
%
4.21
%
3.15
%
3.46
%
4.97
%
Return on average tangible common equity
(1)
13.58
%
13.61
%
9.53
%
11.12
%
14.78
%
Adjustments as noted above
(0.01
)%
—
%
3.98
%
1.74
%
(0.30
)%
Return on average tangible common equity
excluding adjustments noted above (1)
13.57
%
13.61
%
13.51
%
12.86
%
14.48
%
This information is preliminary and based
on company data available at the time of the presentation.
PINNACLE FINANCIAL PARTNERS, INC. AND
SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA –
UNAUDITED
1. Ratios are presented on an annualized
basis.
2. Net interest margin is the result of
net interest income on a tax equivalent basis divided by average
interest earning assets.
3. Total revenue is equal to the sum of
net interest income and noninterest income.
4. Efficiency ratios are calculated by
dividing noninterest expense by the sum of net interest income and
noninterest income.
5. Annualized net loan charge-offs to
average loans ratios are computed by annualizing quarter-to-date
net loan charge-offs and dividing the result by average loans for
the quarter-to-date period.
6. Capital ratios are calculated using
regulatory reporting regulations enacted for such period and are
defined as follows:
Equity to total assets – End of period
total shareholders' equity as a percentage of end of period
assets.
Tangible common equity to tangible assets
- End of period total shareholders' equity less end of period
preferred stock, goodwill, core deposit and other intangibles as a
percentage of end of period assets less end of period goodwill,
core deposit and other intangibles.
Leverage – Tier I capital (pursuant to
risk-based capital guidelines) as a percentage of adjusted average
assets.
Tier I risk-based – Tier I capital
(pursuant to risk-based capital guidelines) as a percentage of
total risk-weighted assets.
Total risk-based – Total capital (pursuant
to risk-based capital guidelines) as a percentage of total
risk-weighted assets.
Classified asset - Classified assets as a
percentage of Tier 1 capital plus allowance for credit losses.
Tier I common equity to risk weighted
assets - Tier 1 capital (pursuant to risk-based capital guidelines)
less the amount of any preferred stock or subordinated indebtedness
that is considered as a component of Tier 1 capital as a percentage
of total risk-weighted assets.
7. Book value per common share computed by
dividing total common shareholders' equity by common shares
outstanding. Tangible book value per common share computed by
dividing total common shareholders' equity, less goodwill, core
deposit and other intangibles by common shares outstanding.
8. Amounts are included in the statement
of income in "Gains on mortgage loans sold, net", net of
commissions paid on such amounts.
9. At fair value, based on information
obtained from Pinnacle's third party broker/dealer for non-FDIC
insured financial products and services.
10. Core deposits include all transaction
deposit accounts, money market and savings accounts and all
certificates of deposit issued in a denomination of less than
$250,000. The ratio noted above represents total core deposits
divided by total funding, which includes total deposits, FHLB
advances, securities sold under agreements to repurchase,
subordinated indebtedness and all other interest-bearing
liabilities.
11. Associate retention rate is computed
by dividing the number of associates employed at quarter end less
the number of associates that have resigned in the last 12 months
by the number of associates employed at quarter end.
12. Adjusted pre-tax, pre-provision net
revenue excludes the impact of ORE expenses and income, investment
gains and losses on sales of securities, 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/20250121429450/en/
MEDIA CONTACT: Joe Bass, 615-743-8219 FINANCIAL
CONTACT: Harold Carpenter, 615-744-3742 WEBSITE:
www.pnfp.com
Pinnacle Financial Partn... (NASDAQ:PNFP)
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