PNFP Reports Diluted EPS of $1.91, ROAA of 1.42% and ROATCE of 17.40% For 3Q2022

Company Release - 10/18/2022 5:00 PM ET

3Q22 annualized linked-quarter loan growth of 20.9% while core deposits grew 9.8%

NASHVILLE, Tenn.--(BUSINESS WIRE)-- Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported net income per diluted common share of $1.91 for the quarter ended Sept. 30, 2022, compared to net income per diluted common share of $1.75 for the quarter ended Sept. 30, 2021, an increase of 9.1 percent. Net income per diluted common share was $5.42 for the nine months ended Sept. 30, 2022, compared to $5.05 for the nine months ended Sept. 30, 2021, an increase of 7.3 percent.

Paycheck Protection Program (PPP) net interest income for the three months ended Sept. 30, 2022 and 2021 was approximately $755,000 and $20.4 million, respectively. PPP net interest income for the nine months ended Sept. 30, 2022 and 2021 was $15.5 million and $66.0 million, respectively. PPP net interest income contributed $0.01 and $0.15 to diluted earnings per common share for the three and nine months ended Sept. 30, 2022, respectively, compared to contributions of $0.20 and $0.64 for the three and nine months ended Sept. 30, 2021, respectively.

"There is little doubt that we continue to operate in a weakening economy," said M. Terry Turner, Pinnacle’s president and chief executive officer. "Nevertheless our relentless focus on those items that we believe are most highly correlated with total shareholder returns resulted in year-over-year growth in earnings per diluted share of 9.1 percent, organic revenue growth of 20.2 percent, book value per share accretion of 2.6 percent and tangible book value per share accretion of 3.6 percent.

"The key to our continued strong growth and strong asset quality metrics has been our ability to attract the best bankers in our markets from our competitors. We have hired 118 revenue producers thus far this year, including 53 in the third quarter, so we are well on pace to surpass our hiring successes of the past two years. As a result, we believe we are extremely well positioned to seize the significant opportunities arising from the substantial market disruption we see occurring across our footprint and to continue producing sound growth in what is likely to be a more challenging economic landscape. Our third quarter results increased our belief that our proven and unique business model should continue to produce outsized revenue growth, earnings growth and tangible book value accretion through a more challenging operating environment."

BALANCE SHEET GROWTH:

Total assets at Sept. 30, 2022 were $41.0 billion, an increase of approximately $4.5 billion from Sept. 30, 2021, reflecting a year-over-year increase of 12.3 percent. A further analysis of select balance sheet trends follows:

 

Balances at

 

Balances at

 

(dollars in thousands)

Sept. 30, 2022

June 30, 2022

Linked-Quarter
Annualized
% Change

Sept. 30, 2021

Year-over-Year
% Change

Loans

$

27,711,694

$

26,333,096

20.9%

$

23,058,461

20.2%

Less: PPP loans

 

10,723

 

51,100

(316.1)%

 

708,722

(98.5)%

Loans excluding PPP loans

 

27,700,971

 

26,281,996

21.6%

 

22,349,739

23.9%

Securities and other interest-earning assets

 

8,706,453

 

9,342,543

(27.2)%

 

9,538,824

(8.7)%

Total interest-earning assets excluding PPP loans

$

36,407,424

$

35,624,539

8.8%

$

31,888,563

14.2%

 

 

 

 

 

 

Core deposits:

 

 

 

 

 

Noninterest-bearing deposits

 

10,567,873

 

11,058,198

(17.7)%

 

9,809,691

7.7%

Interest-bearing core deposits(1)

 

20,180,944

 

18,953,246

25.9%

 

17,360,676

16.2%

Noncore deposits and other funding(2)

 

4,444,868

 

4,496,117

(4.6)%

 

3,778,885

17.6%

Total funding

$

35,193,685

$

34,507,561

8.0%

$

30,949,252

13.7%

(1):

Interest-bearing core deposits are interest-bearing deposits, money market accounts, time deposits less than $250,000 and reciprocating time and money market deposits issued through the IntraFi Network.

(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.

"In conjunction with our hiring success in recent years, we again experienced strong growth in loans during the third quarter with an annualized growth rate of 20.9 percent over June 30, 2022 balances," Turner said. "Our core deposits increased during the third quarter by 9.8 percent annualized over the June 30, 2022 balances. Also, during the quarter we got further confirmation regarding the effectiveness of our model based on FDIC summary of deposit data as of June 30, 2022 where we learned that we increased our deposit market share in virtually every market in which we operate. The Nashville MSA was particularly noteworthy where total deposits grew approximately 3.5 percent year-over-year, and we captured 57 percent of all that growth. We believe our longstanding ability to take deposit market share will serve us well in a period where many are forecasting a contraction in M2, which is highly correlated to shrinking deposit balances."

PRE-TAX, PRE-PROVISION NET REVENUE (PPNR) GROWTH:

Pre-tax, pre-provision net revenues (PPNR) for the quarter ended Sept. 30, 2022 were $211.3 million, an increase of 22.3 percent from the $172.8 million recognized in the quarter ended Sept. 30, 2021.

 

Three months ended

Nine months ended

 

Sept. 30,

Sept. 30,

(dollars in thousands)

2022

2021

% change

2022

2021

% change

Revenues:

 

 

 

 

 

 

Net interest income

$

305,784

 

$

237,543

 

28.7

%

$

809,833

 

$

693,638

 

16.8

%

Noninterest income

 

104,805

 

 

104,095

 

0.7

%

 

333,803

 

 

295,011

 

13.1

%

Total revenues

 

410,589

 

 

341,638

 

20.2

%

 

1,143,636

 

 

988,649

 

15.7

%

Noninterest expense

 

199,253

 

 

168,851

 

18.0

%

 

577,952

 

 

489,687

 

18.0

%

Pre-tax, pre-provision net revenue (PPNR)

 

211,336

 

 

172,787

 

22.3

%

 

565,684

 

 

498,962

 

13.4

%

Adjustments:

 

 

 

 

 

 

Investment (gains) losses on sales of securities, net

 

(217

)

 

 

NM

 

 

(156

)

 

(366

)

NM

 

ORE expense (benefit)

 

(90

)

 

(79

)

NM

 

 

101

 

 

(749

)

NM

 

Adjusted PPNR

$

211,029

 

$

172,708

 

22.2

%

$

565,629

 

$

497,847

 

13.6

%

  • Revenue per fully diluted common share increased for the 11th consecutive quarter to $5.40 for the three months ended Sept. 30, 2022, compared to $5.14 for the second quarter of 2022 and $4.50 for the third quarter of 2021, a 20.0 percent year-over-year growth rate.
  • Net interest income for the quarter ended Sept. 30, 2022 was $305.8 million, compared to $264.6 million for the second quarter of 2022 and $237.5 million for the third quarter of 2021, a year-over-year growth rate of 28.7 percent.
    • Revenues from PPP loans approximated $755,000 in the third quarter of 2022, compared to $4.1 million in the second quarter of 2022 and $20.4 million in the third quarter of 2021. At Sept. 30, 2022, remaining unamortized fees for PPP loans were approximately $333,000.
    • Included in net interest income for the third quarter of 2022 was $1.3 million of discount accretion associated with fair value adjustments, compared to $1.6 million of discount accretion recognized in the second quarter of 2022 and $2.8 million in the third quarter of 2021. There remains $4.4 million of purchase accounting discount accretion as of Sept. 30, 2022.
  • Noninterest income for the quarter ended Sept. 30, 2022 was $104.8 million, compared to $125.5 million for the second quarter of 2022 and $104.1 million for the third quarter of 2021, a year-over-year growth rate of 0.7 percent.
    • Wealth management revenues, which include investment, trust and insurance services, were $19.4 million for the third quarter of 2022, compared to $21.8 million for the second quarter of 2022 and $17.3 million reported for the third quarter of 2021, a year-over-year increase of 12.5 percent.
    • Service charges on deposit accounts were $10.9 million for the quarter ended Sept. 30, 2022, compared to $11.6 million for the quarter ended June 30, 2022 and $11.4 million for the quarter ended Sept. 30, 2021. Service charge revenues were negatively impacted by the previously disclosed changes in the firm's insufficient funds and overdraft programs during the third quarter of 2022 by approximately $500,000.
    • Income from the firm's investment in BHG was $41.3 million for the quarter ended Sept. 30, 2022, down from $49.5 million for the quarter ended June 30, 2022 and up from $30.4 million for the quarter ended Sept. 30, 2021. During the third quarter of 2022, BHG placed approximately $555 million in loans with community banks compared to approximately $658 million in the second quarter of 2022. Additionally, BHG completed another securitization during the third quarter of 2022 for approximately $412 million in funding secured by previously funded loans. This was the third securitization completed in 2022.
    • Other noninterest income was $31.8 million for the quarter ended Sept. 30, 2022, compared to $40.4 million for the quarter ended June 30, 2022 and $37.2 million for the quarter ended Sept. 30, 2021, a linked-quarter annualized decrease of 85.4 percent and year-over-year decline of 14.5 percent, respectively.
      • Third quarter 2022 gains from market valuation adjustments in other equity investments decreased to approximately $725,000, compared to $6.7 million in the second quarter of 2022 and $8.6 million in the third quarter of 2021.
  • Noninterest expense for the quarter ended Sept. 30, 2022 was $199.3 million, compared to $196.0 million in the second quarter of 2022 and $168.9 million in the third quarter of 2021, reflecting a linked-quarter annualized growth rate of 6.6 percent and a year-over-year increase of 18.0 percent.
    • Salaries and employee benefits were $129.9 million in the third quarter of 2022, compared to $126.6 million in the second quarter of 2022 and $112.4 million in the third quarter of 2021, reflecting a linked-quarter annualized growth rate of 10.4 percent and a year-over-year increase of 15.6 percent.
      • Increase in headcount is a meaningful factor to the growth in compensation. Total full-time equivalent associates amounted to 3,184.5 associates at Sept. 30, 2022, compared to 2,769.5 full-time equivalent associates at Sept. 30, 2021, a year-over-year increase in headcount of 15.0 percent.
      • Costs related to the firm's incentive plans increased to $30.7 million in the third quarter of 2022 compared to $30.2 million in the third quarter of 2021 due to increased personnel as well as increased earnings and PPNR, which are primary factors in determining the costs of the firm's annual cash incentive compensation awards.
    • Noninterest expense categories, other than salaries and employee benefits, were $69.3 million in the third quarter of 2022, compared to $69.4 million in the second quarter of 2022 and $56.4 million in the third quarter of 2021, reflecting a year-over-year increase of 22.9 percent.

"We are very pleased with our PPNR results for the third quarter," said Harold R. Carpenter, Pinnacle’s chief financial officer. "We continue to overcome the headwinds from declines in residential mortgage lending, the winding down of PPP lending, declining stock market valuations and the broader impact of inflation. Loan growth, as well as the impact of the rising short-term rate environment, contributed to an increase of $41.2 million in net interest income in the third quarter of 2022 as compared to the second quarter of 2022.

"We anticipated fee revenues to decrease in the third quarter, since the second quarter included all-time high marks from BHG and other fee categories, with significant contributions from market valuation adjustments for other equity investments that we own. Although BHG reported less revenue, they had another extremely strong quarter. Market valuation adjustments from our other equity investments fell by $5.9 million between the second and third quarters. We now estimate our total 2022 revenues (net interest income and noninterest income) should approximate a high-teens percentage increase over that of 2021.

"As to expenses, compensation costs increased approximately 15.6 percent over the same quarter last year, due primarily to increased opportunities to hire the best bankers and investment professionals in our markets. We are optimistic that our hiring model will continue to provide us even more opportunities to add revenue producers this year. Including the impact of inflation and the acquisition of JB&B Capital, LLC in the first quarter of this year, our expenses, comparing the third quarter of 2022 to the same quarter in 2021, have increased by 18.0 percent. We now estimate our total 2022 noninterest expense should approximate a high-teens percentage increase over that of 2021."

SOUNDNESS AND PROFITABILITY:

 

Three months ended

 

Nine months ended

 

Sept. 30, 2022

June 30, 2022

Sept. 30, 2021

 

Sept. 30, 2022

Sept. 30, 2021

Net interest margin

3.47

%

3.17

%

3.03

%

 

3.18

%

3.05

%

Efficiency ratio

48.53

%

50.26

%

49.42

%

 

50.54

%

49.53

%

Return on average assets

1.42

%

1.46

%

1.47

%

 

1.40

%

1.45

%

Return on average tangible common equity (TCE)

17.40

%

17.62

%

16.98

%

 

16.89

%

17.15

%

 

As of

 

Sept. 30, 2022

June 30, 2022

Sept. 30, 2021

Stockholder's equity to total assets

 

13.0

%

 

13.2

%

 

14.2

%

Tangible common equity to tangible assets

 

8.3

%

 

8.4

%

 

9.0

%

Book value per common share

$

67.07

 

$

66.74

 

$

65.36

 

Tangible book value per common share

$

42.44

 

$

42.08

 

$

40.98

 

Annualized net loan charge-offs to avg. loans (1)

 

0.16

%

 

0.01

%

 

0.16

%

Nonperforming assets to total loans, ORE and other nonperforming assets (NPAs)

 

0.15

%

 

0.09

%

 

0.24

%

Classified asset ratio (Pinnacle Bank) (2)

 

2.60

%

 

2.90

%

 

5.60

%

Allowance for credit losses (ACL) to total loans

 

1.04

%

 

1.03

%

 

1.17

%

ACL to total loans, excluding PPP

 

1.04

%

 

1.04

%

 

1.20

%

(1):

Annualized net loan charge-offs to average loans ratios are computed by annualizing quarterly net loan charge-offs and dividing the result by average loans for the quarter.

(2):

Classified assets as a percentage of Tier 1 capital plus allowance for credit losses.

  • Net interest margin was 3.47 percent for the third quarter of 2022, compared to 3.17 percent for the second quarter of 2022 and 3.03 percent for the third quarter of 2021. Net interest margin for the nine months ended Sept. 30, 2022 was 3.18 percent compared to 3.05 percent for the nine months ended Sept. 30, 2021.
    • PPP loans impacted the firm’s net interest margin beginning in the second quarter of 2020 and have continued to impact net interest margin through the third quarter of 2022. Additionally, the firm’s decision early in the pandemic to maintain additional on-balance sheet liquidity also impacted net interest margin in each of fiscal years 2020 and 2021. The firm estimates its second and third quarter 2022 net interest margin was negatively impacted by approximately 12 and 9 basis points, respectively, compared to approximately 12 basis points in each of the second and third quarter of 2021 as a result of these factors.
  • Provision for credit losses was $27.5 million in the third quarter of 2022 compared to $12.9 million in the second quarter of 2022 and $3.4 million in the third quarter of 2021. Net charge-offs were $11.0 million for the quarter ended Sept. 30, 2022, compared to $877,000 for the quarter ended June 30, 2022 and $9.3 million for the quarter ended Sept. 30, 2021. Annualized net loan charge-offs for the third quarter of 2022 were 0.16 percent.
  • Nonperforming assets were $41.9 million at Sept. 30, 2022, compared to $23.7 million at June 30, 2022 and $55.1 million at Sept. 30, 2021, down 24.0 percent over the same quarter last year. The ratio of the allowance for credit losses to nonperforming loans at Sept. 30, 2022 was 844.5 percent, compared to 1,762.6 percent at June 30, 2022 and 575.3 percent at Sept. 30, 2021.
  • Classified assets were $107.9 million at Sept. 30, 2022, compared to $112.5 million at June 30, 2022 and $196.3 million at Sept. 30, 2021, down 45.0 percent over the same quarter last year.

"During the third quarter, our net interest margin increased by approximately 30 basis points, our efficiency ratio improved by 173 basis points, and our return metrics were basically consistent with our strong second quarter results," Carpenter said. "We are also pleased that our tangible book value per share increased again this quarter, despite the impact of rising rates on our investment securities portfolio. Our credit metrics declined slightly in the quarter but remain strong in comparison to historical metrics, which we believe is the result of our credit officers continuing to remain active in proactively conducting portfolio reviews and fine tuning underwriting given forecasts for a weakening economy.

"We believe we have the most experienced bankers in our markets and, as a result, believe this experience translates into a client base of seasoned borrowers. We have long shown that we can grow our franchise organically, which we also believe enhances long-term credit soundness. Furthermore, we operate in many of the best banking markets in the nation where the local economies seem to be better weathering the current economic challenges."

BOARD OF DIRECTORS DECLARES DIVIDENDS

On Oct. 18, 2022, Pinnacle Financial's Board of Directors approved a quarterly cash dividend of $0.22 per common share to be paid on Nov. 25, 2022 to common shareholders of record as of the close of business on Nov. 4, 2022. Additionally, the Board of Directors approved a quarterly 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 Dec. 1, 2022 to shareholders of record at the close of business on Nov. 16, 2022. 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 Oct. 19, 2022, to discuss third quarter 2022 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 bank in the Nashville-Murfreesboro-Franklin MSA, according to 2022 deposit data from the FDIC, is listed by Forbes among the top 25 banks in the nation and earned a spot on the 2022 list of 100 Best Companies to Work For® in the U.S., its sixth consecutive appearance. Pinnacle was also listed in Fortune magazine as the second best company to work for in the U.S. for women. American Banker recognized Pinnacle as one of America’s Best Banks to Work For nine years in a row and No. 1 among banks with more than $11 billion in assets in 2021.

Pinnacle owns a 49 percent interest in Bankers Healthcare Group (BHG), which provides innovative, hassle-free financial solutions to healthcare practitioners and other licensed 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 $41.0 billion in assets as of Sept. 30, 2022. As the second-largest bank holding company headquartered in Tennessee, Pinnacle operates in 15 primarily urban markets across the Southeast.

Additional information concerning Pinnacle, which is included in the Nasdaq Financial-100 Index, can be accessed at www.pnfp.com.

Forward-Looking Statements

All statements, other than statements of historical fact, included in this press release, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "expect," "anticipate," "intend," "may," "should," "plan," "believe," "seek," "estimate" and similar expressions are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, including, but not limited to: (i) deterioration in the financial condition of borrowers of Pinnacle Bank and its subsidiaries or BHG, including as a result of the negative impact of inflationary pressures 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) adverse conditions in the national or local economies including in Pinnacle Financial's markets throughout Tennessee, North Carolina, South Carolina, Georgia, Alabama and Virginia, particularly in commercial and residential real estate markets; (iv) 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; (v) 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; (vi) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (vii) effectiveness of Pinnacle Financial's asset management activities in improving, resolving or liquidating lower-quality assets; (viii) 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 compression to net interest margin; (ix) the effects of new outbreaks of COVID-19, including actions taken by governmental officials to curb the spread of the virus, and the resulting impact on general economic and financial market conditions and on Pinnacle Financial's and its customers' business, results of operations, asset quality and financial condition; (x) the efficacy of vaccines against the COVID-19 virus, including new variants; (xi) the results of regulatory examinations; (xii) Pinnacle Financial's ability to identify potential candidates for, consummate, and achieve synergies from, potential future acquisitions; (xiii) difficulties and delays in integrating acquired businesses or fully realizing costs savings and other benefits from acquisitions; (xiv) BHG's ability to profitably grow its business and successfully execute on its business plans; (xv) risks of expansion into new geographic or product markets; (xvi) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including goodwill or other intangible assets; (xvii) the ineffectiveness of Pinnacle Bank's hedging strategies, or the unexpected counterparty failure or hedge failure of the underlying hedges; (xviii) 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; (xix) deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xx) 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; (xxi) approval of the declaration of any dividend by Pinnacle Financial's board of directors; (xxii) the vulnerability of Pinnacle Bank's network and online banking portals, and the systems of parties with whom Pinnacle Bank contracts, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; (xxiii) 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; (xxiv) the risks associated with Pinnacle Financial and 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 Financial and Pinnacle Bank); (xxv) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, like BHG, including regulatory or legislative developments; (xxvi) fluctuations in the valuations of Pinnacle Financial's equity investments and the ultimate success of such investments; (xxvii) the availability of and access to capital; (xxviii) 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, including as a result of Pinnacle Bank's participation in and execution of government programs related to the COVID-19 pandemic; and (xxix) 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, 2021, 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, earnings per diluted common share, PPNR, efficiency ratio 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 and other matters for the accounting periods presented. This release also includes non-GAAP financial measures which exclude the impact of loans originated and forgiven and repaid under the PPP. 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 2022 versus certain periods in 2021 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)

September 30,
2022

December 31,
2021

September 30,
2021

ASSETS

 

 

 

Cash and noninterest-bearing due from banks

$

168,010

 

$

188,287

 

$

155,965

 

Restricted cash

 

18,636

 

 

82,505

 

 

104,157

 

Interest-bearing due from banks

 

1,616,878

 

 

3,830,747

 

 

3,206,383

 

Cash and cash equivalents

 

1,803,524

 

 

4,101,539

 

 

3,466,505

 

Securities purchased with agreement to resell

 

528,999

 

 

1,000,000

 

 

500,000

 

Securities available-for-sale, at fair value

 

3,542,601

 

 

4,914,194

 

 

4,634,653

 

Securities held-to-maturity (fair value of $2.5 billion, $1.2 billion, and $1.0 billion, net of allowance for credit losses of $1.6 million, $161 and $161 at Sept. 30, 2022, Dec. 31, 2021 and Sept. 30, 2021, respectively)

 

2,938,417

 

 

1,155,958

 

 

989,237

 

Consumer loans held-for-sale

 

45,509

 

 

45,806

 

 

55,273

 

Commercial loans held-for-sale

 

15,413

 

 

17,685

 

 

49,121

 

Loans

 

27,711,694

 

 

23,414,262

 

 

23,058,461

 

Less allowance for credit losses

 

(288,088

)

 

(263,233

)

 

(268,635

)

Loans, net

 

27,423,606

 

 

23,151,029

 

 

22,789,826

 

Premises and equipment, net

 

320,273

 

 

288,182

 

 

288,833

 

Equity method investment

 

425,892

 

 

360,833

 

 

333,764

 

Accrued interest receivable

 

110,170

 

 

98,813

 

 

89,137

 

Goodwill

 

1,846,466

 

 

1,819,811

 

 

1,819,811

 

Core deposits and other intangible assets

 

35,666

 

 

33,819

 

 

35,876

 

Other real estate owned

 

7,787

 

 

8,537

 

 

8,415

 

Other assets

 

1,955,795

 

 

1,473,193

 

 

1,463,485

 

Total assets

$

41,000,118

 

$

38,469,399

 

$

36,523,936

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

Deposits:

 

 

 

Noninterest-bearing

$

10,567,873

 

$

10,461,071

 

$

9,809,691

 

Interest-bearing

 

7,549,510

 

 

6,530,015

 

 

5,767,286

 

Savings and money market accounts

 

12,712,809

 

 

12,179,663

 

 

11,381,033

 

Time

 

2,859,857

 

 

2,133,784

 

 

2,411,797

 

Total deposits

 

33,690,049

 

 

31,304,533

 

 

29,369,807

 

Securities sold under agreements to repurchase

 

190,554

 

 

152,559

 

 

148,240

 

Federal Home Loan Bank advances

 

889,248

 

 

888,681

 

 

888,493

 

Subordinated debt and other borrowings

 

423,834

 

 

423,172

 

 

542,712

 

Accrued interest payable

 

10,202

 

 

12,504

 

 

11,838

 

Other liabilities

 

454,119

 

 

377,343

 

 

371,048

 

Total liabilities

 

35,658,006

 

 

33,158,792

 

 

31,332,138

 

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 Sept. 30, 2022, Dec. 31, 2021 and Sept. 30, 2021, respectively

 

217,126

 

 

217,126

 

 

217,126

 

Common stock, par value $1.00; 180.0 million shares authorized; 76.4 million, 76.1 million and 76.1 million shares issued and outstanding at Sept. 30, 2022, Dec. 31, 2021, and Sept. 30, 2021, respectively

 

76,413

 

 

76,143

 

 

76,115

 

Additional paid-in capital

 

3,066,527

 

 

3,045,802

 

 

3,038,800

 

Retained earnings

 

2,224,736

 

 

1,864,350

 

 

1,748,491

 

Accumulated other comprehensive income (loss), net of taxes

 

(242,690

)

 

107,186

 

 

111,266

 

Total stockholders' equity

 

5,342,112

 

 

5,310,607

 

 

5,191,798

 

Total liabilities and stockholders' equity

$

41,000,118

 

$

38,469,399

 

$

36,523,936

 

This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED

(dollars in thousands, except for share and per share data)

Three months ended

Nine months ended

 

September 30,
2022

June 30,
2022

September 30,
2021

September 30,
2022

September 30,
2021

Interest income:

 

 

 

 

 

Loans, including fees

$

315,935

 

$

252,182

 

$

233,857

 

$

795,164

 

$

694,017

 

Securities

 

 

 

 

 

Taxable

 

18,204

 

 

12,725

 

 

8,986

 

 

41,977

 

 

25,073

 

Tax-exempt

 

21,408

 

 

19,898

 

 

15,873

 

 

58,752

 

 

47,917

 

Federal funds sold and other

 

16,217

 

 

7,571

 

 

2,152

 

 

26,864

 

 

5,014

 

Total interest income

 

371,764

 

 

292,376

 

 

260,868

 

 

922,757

 

 

772,021

 

Interest expense:

 

 

 

 

 

Deposits

 

55,189

 

 

18,181

 

 

12,139

 

 

83,620

 

 

43,468

 

Securities sold under agreements to repurchase

 

182

 

 

82

 

 

57

 

 

320

 

 

185

 

FHLB advances and other borrowings

 

10,609

 

 

9,539

 

 

11,129

 

 

28,984

 

 

34,730

 

Total interest expense

 

65,980

 

 

27,802

 

 

23,325

 

 

112,924

 

 

78,383

 

Net interest income

 

305,784

 

 

264,574

 

 

237,543

 

 

809,833

 

 

693,638

 

Provision for credit losses

 

27,493

 

 

12,907

 

 

3,382

 

 

43,120

 

 

13,451

 

Net interest income after provision for credit losses

 

278,291

 

 

251,667

 

 

234,161

 

 

766,713

 

 

680,187

 

Noninterest income:

 

 

 

 

 

Service charges on deposit accounts

 

10,906

 

 

11,616

 

 

11,435

 

 

33,552

 

 

28,648

 

Investment services

 

10,780

 

 

13,205

 

 

9,648

 

 

34,676

 

 

26,836

 

Insurance sales commissions

 

2,928

 

 

2,554

 

 

2,557

 

 

9,518

 

 

8,188

 

Gains on mortgage loans sold, net

 

1,117

 

 

2,150

 

 

7,814

 

 

7,333

 

 

28,180

 

Investment gains on sales, net

 

217

 

 

 

 

 

 

156

 

 

366

 

Trust fees

 

5,706

 

 

6,065

 

 

5,049

 

 

17,744

 

 

14,798

 

Income from equity method investment

 

41,341

 

 

49,465

 

 

30,409

 

 

124,461

 

 

91,430

 

Other noninterest income

 

31,810

 

 

40,447

 

 

37,183

 

 

106,363

 

 

96,565

 

Total noninterest income

 

104,805

 

 

125,502

 

 

104,095

 

 

333,803

 

 

295,011

 

Noninterest expense:

 

 

 

 

 

Salaries and employee benefits

 

129,910

 

 

126,611

 

 

112,406

 

 

378,373

 

 

325,958

 

Equipment and occupancy

 

27,886

 

 

26,921

 

 

23,712

 

 

80,343

 

 

70,253

 

Other real estate, net

 

(90

)

 

86

 

 

(79

)

 

101

 

 

(749

)

Marketing and other business development

 

4,958

 

 

4,759

 

 

3,325

 

 

13,494

 

 

8,326

 

Postage and supplies

 

2,795

 

 

2,320

 

 

2,083

 

 

7,486

 

 

6,004

 

Amortization of intangibles

 

1,951

 

 

2,051

 

 

2,088

 

 

5,873

 

 

6,461

 

Other noninterest expense

 

31,843

 

 

33,290

 

 

25,316

 

 

92,282

 

 

73,434

 

Total noninterest expense

 

199,253

 

 

196,038

 

 

168,851

 

 

577,952

 

 

489,687

 

Income before income taxes

 

183,843

 

 

181,131

 

 

169,405

 

 

522,564

 

 

485,511

 

Income tax expense

 

35,185

 

 

36,004

 

 

32,828

 

 

99,669

 

 

91,716

 

Net income

 

148,658

 

 

145,127

 

 

136,577

 

 

422,895

 

 

393,795

 

Preferred stock dividends

 

(3,798

)

 

(3,798

)

 

(3,798

)

 

(11,394

)

 

(11,394

)

Net income available to common shareholders

$

144,860

 

$

141,329

 

$

132,779

 

$

411,501

 

$

382,401

 

Per share information:

 

 

 

 

 

Basic net income per common share

$

1.91

 

$

1.87

 

$

1.76

 

$

5.43

 

$

5.07

 

Diluted net income per common share

$

1.91

 

$

1.86

 

$

1.75

 

$

5.42

 

$

5.05

 

Weighted average common shares outstanding:

 

 

 

 

 

Basic

 

75,761,930

 

 

75,751,296

 

 

75,494,286

 

 

75,723,129

 

 

75,449,900

 

Diluted

 

75,979,056

 

 

75,940,500

 

 

75,836,142

 

 

75,945,469

 

 

75,760,618

 

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, 2020

$

217,126

75,850

 

$

75,850

 

$

3,028,063

 

$

1,407,723

 

$

175,849

 

$

4,904,611

 

Exercise of employee common stock options & related tax benefits

 

 

32

 

 

32

 

 

672

 

 

 

 

 

 

704

 

Preferred dividends paid ($50.64 per share)

 

 

 

 

 

 

 

 

(11,394

)

 

 

 

(11,394

)

Common dividends paid ($0.54 per share)

 

 

 

 

 

 

 

 

(41,633

)

 

 

 

(41,633

)

Issuance of restricted common shares, net of forfeitures

 

 

194

 

 

194

 

 

(194

)

 

 

 

 

 

 

Restricted shares withheld for taxes & related tax benefits

 

 

(49

)

 

(49

)

 

(3,697

)

 

 

 

 

 

(3,746

)

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

 

 

88

 

 

88

 

 

(3,878

)

 

 

 

 

 

(3,790

)

Compensation expense for restricted shares & performance stock units

 

 

 

 

 

 

17,834

 

 

 

 

 

 

17,834

 

Net income

 

 

 

 

 

 

 

 

393,795

 

 

 

 

393,795

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

(64,583

)

 

(64,583

)

Balance at September 30, 2021

$

217,126

 

76,115

 

$

76,115

 

$

3,038,800

 

$

1,748,491

 

$

111,266

 

$

5,191,798

 

 

 

 

 

 

 

 

 

Balance at December 31, 2021

$

217,126

 

76,143

 

$

76,143

 

$

3,045,802

 

$

1,864,350

 

$

107,186

 

$

5,310,607

 

Exercise of employee common stock options & related tax benefits

 

 

14

 

 

14

 

 

264

 

 

 

 

 

 

278

 

Preferred dividends paid ($50.64 per share)

 

 

 

 

 

 

 

 

(11,394

)

 

 

 

(11,394

)

Common dividends paid ($0.66 per share)

 

 

 

 

 

 

 

 

(51,115

)

 

 

 

(51,115

)

Issuance of restricted common shares, net of forfeitures

 

 

207

 

 

207

 

 

(169

)

 

 

 

 

 

38

 

Restricted shares withheld for taxes & related tax benefits

 

 

(46

)

 

(46

)

 

(4,657

)

 

 

 

 

 

(4,703

)

Issuance of common stock pursuant to RSU and PSU agreements, net of shares withheld for taxes & related tax benefits

 

 

95

 

 

95

 

 

(5,595

)

 

 

 

 

 

(5,500

)

Compensation expense for restricted shares & performance stock units

 

 

 

 

 

 

30,882

 

 

 

 

 

 

30,882

 

Net income

 

 

 

 

 

 

 

 

422,895

 

 

 

 

422,895

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

(349,876

)

 

(349,876

)

Balance at September 30, 2022

$

217,126

 

76,413

 

$

76,413

 

$

3,066,527

 

$

2,224,736

 

$

(242,690

)

$

5,342,112

 

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED

 

 

 

 

 

 

 

(dollars in thousands)

September

June

March

December

September

June

2022

2022

2022

2021

2021

2021

Balance sheet data, at quarter end:

 

 

 

 

 

 

Commercial and industrial loans

$

9,738,271

 

9,244,708

 

8,213,204

 

7,703,428

 

7,079,431

 

6,771,254

 

Commercial real estate - owner occupied loans

 

3,426,271

 

3,243,018

 

3,124,275

 

3,048,822

 

2,954,519

 

2,817,689

 

Commercial real estate - investment loans

 

5,122,127

 

4,909,598

 

4,707,761

 

4,607,048

 

4,597,736

 

4,644,551

 

Commercial real estate - multifamily and other loans

 

1,042,854

 

951,998

 

718,822

 

614,656

 

621,471

 

724,253

 

Consumer real estate - mortgage loans

 

4,271,913

 

4,047,051

 

3,813,252

 

3,680,684

 

3,540,439

 

3,335,537

 

Construction and land development loans

 

3,548,970

 

3,386,866

 

3,277,029

 

2,903,017

 

3,096,961

 

2,791,611

 

Consumer and other loans

 

550,565

 

498,757

 

487,499

 

485,489

 

459,182

 

440,124

 

Paycheck protection program loans

 

10,723

 

51,100

 

157,180

 

371,118

 

708,722

 

1,372,916

 

Total loans

 

27,711,694

 

26,333,096

 

24,499,022

 

23,414,262

 

23,058,461

 

22,897,935

 

Allowance for credit losses

 

(288,088

)

(272,483

)

(261,618

)

(263,233

)

(268,635

)

(273,747

)

Securities

 

6,481,018

 

6,553,893

 

6,136,109

 

6,070,152

 

5,623,890

 

5,326,908

 

Total assets

 

41,000,118

 

40,121,292

 

39,400,378

 

38,469,399

 

36,523,936

 

35,412,309

 

Noninterest-bearing deposits

 

10,567,873

 

11,058,198

 

10,986,194

 

10,461,071

 

9,809,691

 

8,926,200

 

Total deposits

 

33,690,049

 

32,595,303

 

32,295,814

 

31,304,533

 

29,369,807

 

28,217,603

 

Securities sold under agreements to repurchase

 

190,554

 

199,585

 

219,530

 

152,559

 

148,240

 

177,661

 

FHLB advances

 

889,248

 

1,289,059

 

888,870

 

888,681

 

888,493

 

888,304

 

Subordinated debt and other borrowings

 

423,834

 

423,614

 

423,319

 

423,172

 

542,712

 

671,994

 

Total stockholders' equity

 

5,342,112

 

5,315,239

 

5,280,950

 

5,310,607

 

5,191,798

 

5,101,231

 

Balance sheet data, quarterly averages:

 

 

 

 

 

 

Total loans

$

27,021,031

 

25,397,389

 

23,848,533

 

23,225,735

 

22,986,835

 

23,179,803

 

Securities

 

6,542,026

 

6,446,774

 

6,143,664

 

5,813,636

 

5,451,232

 

5,036,786

 

Federal funds sold and other

 

2,600,978

 

2,837,679

 

4,799,946

 

4,356,113

 

3,743,074

 

3,143,078

 

Total earning assets

 

36,164,035

 

34,681,842

 

34,792,143

 

33,395,484

 

32,181,141

 

31,359,667

 

Total assets

 

40,464,649

 

38,780,786

 

38,637,221

 

37,132,078

 

35,896,130

 

35,053,772

 

Noninterest-bearing deposits

 

10,926,069

 

10,803,439

 

10,478,403

 

10,240,393

 

9,247,382

 

8,500,465

 

Total deposits

 

33,108,415

 

31,484,100

 

31,538,985

 

30,034,026

 

28,739,871

 

28,013,659

 

Securities sold under agreements to repurchase

 

215,646

 

216,846

 

179,869

 

141,781

 

164,837

 

173,268

 

FHLB advances

 

1,010,865

 

1,095,531

 

888,746

 

888,559

 

888,369

 

888,184

 

Subordinated debt and other borrowings

 

426,267

 

427,191

 

441,755

 

484,389

 

586,387

 

674,162

 

Total stockholders' equity

 

5,403,244

 

5,316,219

 

5,331,405

 

5,262,586

 

5,176,625

 

5,039,608

 

Statement of operations data, for the three months ended:

Interest income

$

371,764

 

292,376

 

258,617

 

259,193

 

260,868

 

259,236

 

Interest expense

 

65,980

 

27,802

 

19,142

 

20,430

 

23,325

 

26,011

 

Net interest income

 

305,784

 

264,574

 

239,475

 

238,763

 

237,543

 

233,225

 

Provision for credit losses

 

27,493

 

12,907

 

2,720

 

2,675

 

3,382

 

2,834

 

Net interest income after provision for credit losses

 

278,291

 

251,667

 

236,755

 

236,088

 

234,161

 

230,391

 

Noninterest income

 

104,805

 

125,502

 

103,496

 

100,723

 

104,095

 

98,207

 

Noninterest expense

 

199,253

 

196,038

 

182,661

 

170,417

 

168,851

 

166,140

 

Income before taxes

 

183,843

 

181,131

 

157,590

 

166,394

 

169,405

 

162,458

 

Income tax expense

 

35,185

 

36,004

 

28,480

 

32,866

 

32,828

 

30,668

 

Net income

 

148,658

 

145,127

 

129,110

 

133,528

 

136,577

 

131,790

 

Preferred stock dividends

 

(3,798

)

(3,798

)

(3,798

)

(3,798

)

(3,798

)

(3,798

)

Net income available to common shareholders

$

144,860

 

141,329

 

125,312

 

129,730

 

132,779

 

127,992

 

Profitability and other ratios:

 

 

 

 

 

 

Return on avg. assets (1)

 

1.42

%

1.46

%

1.32

%

1.39

%

1.47

%

1.46

%

Return on avg. equity (1)

 

10.64

%

10.66

%

9.53

%

9.78

%

10.18

%

10.19

%

Return on avg. common equity (1)

 

11.08

%

11.12

%

9.94

%

10.20

%

10.62

%

10.65

%

Return on avg. tangible common equity (1)

 

17.40

%

17.62

%

15.63

%

16.13

%

16.98

%

17.32

%

Common stock dividend payout ratio (15)

 

12.34

%

12.63

%

12.94

%

10.65

%

11.13

%

11.73

%

Net interest margin (2)

 

3.47

%

3.17

%

2.89

%

2.96

%

3.03

%

3.08

%

Noninterest income to total revenue (3)

 

25.53

%

32.17

%

30.18

%

29.67

%

30.47

%

29.63

%

Noninterest income to avg. assets (1)

 

1.03

%

1.30

%

1.09

%

1.08

%

1.15

%

1.12

%

Noninterest exp. to avg. assets (1)

 

1.95

%

2.03

%

1.92

%

1.82

%

1.87

%

1.90

%

Efficiency ratio (4)

 

48.53

%

50.26

%

53.26

%

50.20

%

49.42

%

50.13

%

Avg. loans to avg. deposits

 

81.61

%

80.67

%

75.62

%

77.33

%

79.98

%

82.74

%

Securities to total assets

 

15.81

%

16.34

%

15.57

%

15.78

%

15.40

%

15.04

%

This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED

 

 

 

 

(dollars in thousands)

Three months ended

 

Three months ended

September 30, 2022

 

September 30, 2021

 

Average
Balances

Interest

Rates/
Yields

 

Average
Balances

Interest

Rates/
Yields

Interest-earning assets

 

 

 

 

 

 

 

Loans (1) (2)

$

27,021,031

$

315,935

4.73

%

 

$

22,986,835

$

233,857

4.13

%

Securities

 

 

 

 

 

 

 

Taxable

 

3,436,460

 

 

18,204

 

2.10

%

 

 

2,868,212

 

 

8,986

 

1.24

%

Tax-exempt (2)

 

3,105,566

 

 

21,408

 

3.28

%

 

 

2,583,020

 

 

15,873

 

2.93

%

Interest-bearing due from banks

 

1,491,338

 

 

8,666

 

2.31

%

 

 

3,088,027

 

 

1,181

 

0.15

%

Resell agreements

 

920,786

 

 

5,616

 

2.42

%

 

 

500,000

 

 

432

 

0.34

%

Federal funds sold

 

 

 

 

%

 

 

 

 

 

%

Other

 

188,854

 

 

1,935

 

4.06

%

 

 

155,047

 

 

539

 

1.38

%

Total interest-earning assets

 

36,164,035

 

$

371,764

 

4.20

%

 

 

32,181,141

 

$

260,868

 

3.32

%

Nonearning assets

 

 

 

 

 

 

 

Intangible assets

 

1,883,350

 

 

 

 

 

1,857,039

 

 

 

Other nonearning assets

 

2,417,264

 

 

 

 

 

1,857,950

 

 

 

Total assets

$

40,464,649

 

 

 

 

$

35,896,130

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

Interest checking

 

6,763,990

 

 

18,008

 

1.06

%

 

 

5,591,119

 

 

2,453

 

0.17

%

Savings and money market

 

12,765,435

 

 

29,347

 

0.91

%

 

 

11,359,595

 

 

5,300

 

0.19

%

Time

 

2,652,921

 

 

7,834

 

1.17

%

 

 

2,541,775

 

 

4,386

 

0.68

%

Total interest-bearing deposits

 

22,182,346

 

 

55,189

 

0.99

%

 

 

19,492,489

 

 

12,139

 

0.25

%

Securities sold under agreements to repurchase

 

215,646

 

 

182

 

0.34

%

 

 

164,837

 

 

57

 

0.14

%

Federal Home Loan Bank advances

 

1,010,865

 

 

5,762

 

2.26

%

 

 

888,369

 

 

4,558

 

2.04

%

Subordinated debt and other borrowings

 

426,267

 

 

4,847

 

4.51

%

 

 

586,387

 

 

6,571

 

4.45

%

Total interest-bearing liabilities

 

23,835,124

 

 

65,980

 

1.10

%

 

 

21,132,082

 

 

23,325

 

0.44

%

Noninterest-bearing deposits

 

10,926,069

 

 

 

 

 

 

9,247,382

 

 

 

 

Total deposits and interest-bearing liabilities

 

34,761,193

 

$

65,980

 

0.75

%

 

 

30,379,464

 

$

23,325

 

0.30

%

Other liabilities

 

300,212

 

 

 

 

 

340,041

 

 

 

Stockholders' equity

 

5,403,244

 

 

 

 

 

5,176,625

 

 

 

Total liabilities and stockholders' equity

$

40,464,649

 

 

 

 

$

35,896,130

 

 

 

Net interest income

 

$

305,784

 

 

 

 

$

237,543

 

 

Net interest spread (3)

 

 

3.10

%

 

 

 

2.88

%

Net interest margin (4)

 

 

3.47

%

 

 

 

3.03

%

 

 

 

 

 

 

 

 

(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 $10.8 million of taxable equivalent income for the three months ended September 30, 2022 compared to $8.5 million for the three months ended September 30, 2021. 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 September 30, 2022 would have been 3.44% compared to a net interest spread of 3.02% for the three months ended September 30, 2021.

(4) Net interest margin is the result of annualized net interest income calculated on a tax equivalent basis divided by average interest-earning assets for the period.

 

 

 

This information is preliminary and based on company data available at the time of the presentation.

 

 

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED

 

 

 

 

(dollars in thousands)

Nine months ended

 

Nine months ended

September 30, 2022

 

September 30, 2021

 

Average
Balances

Interest

Rates/
Yields

 

Average
Balances

Interest

Rates/
Yields

Interest-earning assets

 

 

 

 

 

 

 

Loans (1) (2)

$

25,433,939

$

795,164

4.27

%

 

$

23,005,416

$

694,017

4.11

%

Securities

 

 

 

 

 

 

 

Taxable

 

3,400,046

 

 

41,977

 

1.65

%

 

 

2,575,720

 

 

25,073

 

1.30

%

Tax-exempt (2)

 

2,978,901

 

 

58,752

 

3.18

%

 

 

2,478,584

 

 

47,917

 

3.11

%

Interest-bearing due from banks

 

2,050,401

 

 

12,580

 

0.82

%

 

 

2,913,215

 

 

2,450

 

0.11

%

Resell agreements

 

1,175,119

 

 

10,674

 

1.21

%

 

 

331,502

 

 

842

 

0.34

%

Federal funds sold

 

 

 

 

%

 

 

13,321

 

 

 

%

Other

 

179,293

 

 

3,610

 

2.69

%

 

 

157,496

 

 

1,722

 

1.46

%

Total interest-earning assets

 

35,217,699

 

$

922,757

 

3.61

%

 

 

31,475,254

 

$

772,021

 

3.38

%

Nonearning assets

 

 

 

 

 

 

 

Intangible assets

 

1,876,614

 

 

 

 

 

1,859,183

 

 

 

Other nonearning assets

 

2,206,600

 

 

 

 

 

1,873,106

 

 

 

Total assets

$

39,300,913

 

 

 

 

$

35,207,543

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

Interest checking

 

6,560,068

 

 

26,741

 

0.54

%

 

 

5,504,133

 

 

7,460

 

0.18

%

Savings and money market

 

12,479,841

 

 

43,542

 

0.47

%

 

 

11,323,160

 

 

17,670

 

0.21

%

Time

 

2,272,063

 

 

13,337

 

0.78

%

 

 

2,839,449

 

 

18,338

 

0.86

%

Total interest-bearing deposits

 

21,311,972

 

 

83,620

 

0.52

%

 

 

19,666,742

 

 

43,468

 

0.30

%

Securities sold under agreements to repurchase

 

204,251

 

 

320

 

0.21

%

 

 

160,641

 

 

185

 

0.15

%

Federal Home Loan Bank advances

 

998,828

 

 

15,467

 

2.07

%

 

 

903,569

 

 

13,553

 

2.01

%

Subordinated debt and other borrowings

 

431,681

 

 

13,517

 

4.19

%

 

 

644,417

 

 

21,177

 

4.39

%

Total interest-bearing liabilities

 

22,946,732

 

 

112,924

 

0.66

%

 

 

21,375,369

 

 

78,383

 

0.49

%

Noninterest-bearing deposits

 

10,737,610

 

 

 

 

 

 

8,462,129

 

 

 

 

Total deposits and interest-bearing liabilities

 

33,684,342

 

$

112,924

 

0.45

%

 

 

29,837,498

 

$

78,383

 

0.35

%

Other liabilities

 

266,018

 

 

 

 

 

312,598

 

 

 

Stockholders' equity

 

5,350,553

 

 

 

 

 

5,057,447

 

 

 

Total liabilities and stockholders' equity

$

39,300,913

 

 

 

 

$

35,207,543

 

 

 

Net interest income

 

$

809,833

 

 

 

 

$

693,638

 

 

Net interest spread (3)

 

 

2.95

%

 

 

 

2.89

%

Net interest margin (4)

 

 

3.18

%

 

 

 

3.05

%

 

 

 

 

 

 

 

 

(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 $28.8 million of taxable equivalent income for the nine months ended September 30, 2022 compared to $23.7 million for the nine months ended September 30, 2021. 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 nine months ended September 30, 2022 would have been 3.16% compared to a net interest spread of 3.03% for the nine months ended September 30, 2021.

(4) Net interest margin is the result of annualized net interest income calculated on a tax equivalent basis divided by average interest-earning assets for the period.

 

This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED

 

 

 

 

 

 

 

(dollars in thousands)

September

June

March

December

September

June

2022

2022

2022

2021

2021

2021

Asset quality information and ratios:

 

 

 

 

 

 

Nonperforming assets:

 

 

 

 

 

 

Nonaccrual loans

$

34,115

 

15,459

 

26,616

 

31,569

 

46,692

 

53,105

 

ORE and other nonperforming assets (NPAs)

 

7,787

 

8,237

 

8,437

 

8,537

 

8,415

 

9,602

 

Total nonperforming assets

$

41,902

 

23,696

 

35,053

 

40,106

 

55,107

 

62,707

 

Past due loans over 90 days and still accruing interest

$

6,757

 

3,840

 

1,605

 

1,607

 

1,914

 

1,810

 

Accruing troubled debt restructurings (5)

$

2,228

 

2,279

 

2,317

 

2,354

 

2,397

 

2,428

 

Accruing purchase credit deteriorated loans

$

8,759

 

9,194

 

12,661

 

13,086

 

12,158

 

12,400

 

Net loan charge-offs

$

10,983

 

877

 

2,958

 

8,077

 

9,281

 

9,968

 

Allowance for credit losses to nonaccrual loans

 

844.5

%

1,762.6

%

982.9

%

833.8

%

575.3

%

515.5

%

As a percentage of total loans:

 

 

 

 

 

 

Past due accruing loans over 30 days

 

0.13

%

0.11

%

0.11

%

0.09

%

0.09

%

0.07

%

Potential problem loans

 

0.21

%

0.32

%

0.41

%

0.47

%

0.60

%

0.74

%

Allowance for credit losses

 

1.04

%

1.03

%

1.07

%

1.12

%

1.17

%

1.20

%

Nonperforming assets to total loans, ORE and other NPAs

 

0.15

%

0.09

%

0.14

%

0.17

%

0.24

%

0.27

%

Classified asset ratio (Pinnacle Bank) (7)

 

2.6

%

2.9

%

3.6

%

4.1

%

5.6

%

6.8

%

Annualized net loan charge-offs to avg. loans (6)

 

0.16

%

0.01

%

0.05

%

0.14

%

0.16

%

0.17

%

 

 

 

 

 

 

 

Interest rates and yields:

 

 

 

 

 

 

Loans

 

4.73

%

4.07

%

3.94

%

4.04

%

4.13

%

4.11

%

Securities

 

2.66

%

2.29

%

2.12

%

2.08

%

2.04

%

2.25

%

Total earning assets

 

4.20

%

3.49

%

3.11

%

3.20

%

3.32

%

3.42

%

Total deposits, including non-interest bearing

 

0.66

%

0.23

%

0.13

%

0.14

%

0.17

%

0.20

%

Securities sold under agreements to repurchase

 

0.34

%

0.15

%

0.13

%

0.15

%

0.14

%

0.13

%

FHLB advances

 

2.26

%

1.92

%

2.04

%

2.04

%

2.04

%

2.03

%

Subordinated debt and other borrowings

 

4.51

%

4.04

%

4.00

%

4.23

%

4.45

%

4.52

%

Total deposits and interest-bearing liabilities

 

0.75

%

0.34

%

0.23

%

0.26

%

0.30

%

0.35

%

 

 

 

 

 

 

 

Capital and other ratios (7):

 

 

 

 

 

 

Pinnacle Financial ratios:

 

 

 

 

 

 

Stockholders' equity to total assets

 

13.0

%

13.2

%

13.4

%

13.8

%

14.2

%

14.4

%

Common equity Tier one

 

10.0

%

10.2

%

10.5

%

10.9

%

10.5

%

10.5

%

Tier one risk-based

 

10.7

%

10.9

%

11.2

%

11.7

%

11.3

%

11.3

%

Total risk-based

 

12.6

%

12.9

%

13.3

%

13.8

%

14.0

%

14.5

%

Leverage

 

9.7

%

9.8

%

9.5

%

9.7

%

9.3

%

9.2

%

Tangible common equity to tangible assets

 

8.3

%

8.4

%

8.5

%

8.8

%

9.0

%

9.0

%

Pinnacle Bank ratios:

 

 

 

 

 

 

Common equity Tier one

 

11.1

%

11.0

%

11.4

%

11.9

%

11.7

%

11.9

%

Tier one risk-based

 

11.1

%

11.0

%

11.4

%

11.9

%

11.7

%

11.9

%

Total risk-based

 

11.8

%

11.7

%

12.1

%

12.6

%

12.5

%

13.1

%

Leverage

 

10.1

%

9.9

%

9.6

%

9.9

%

9.7

%

9.6

%

Construction and land development loans as a percentage of total capital (18)

 

85.4

%

87.4

%

87.4

%

79.1

%

89.3

%

80.1

%

Non-owner occupied commercial real estate and multi-family as a percentage of total capital (18)

 

244.0

%

250.2

%

243.7

%

234.1

%

252.4

%

248.8

%

 

 

 

 

 

 

 

This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED

 

 

 

 

 

 

 

(dollars in thousands, except per share data)

September

June

March

December

September

June

2022

2022

2022

2021

2021

2021

 

 

 

 

 

 

 

Per share data:

 

 

 

 

 

 

Earnings per common share – basic

$

1.91

 

1.87

 

1.66

 

1.72

 

1.76

 

1.70

 

Earnings per common share - basic, excluding non-GAAP adjustments

$

1.91

 

1.87

 

1.66

 

1.71

 

1.76

 

1.69

 

Earnings per common share – diluted

$

1.91

 

1.86

 

1.65

 

1.71

 

1.75

 

1.69

 

Earnings per common share - diluted, excluding non-GAAP adjustments

$

1.91

 

1.86

 

1.65

 

1.70

 

1.75

 

1.68

 

Common dividends per share

$

0.22

 

0.22

 

0.22

 

0.18

 

0.18

 

0.18

 

Book value per common share at quarter end (8)

$

67.07

 

66.74

 

66.30

 

66.89

 

65.36

 

64.19

 

Tangible book value per common share at quarter end (8)

$

42.44

 

42.08

 

41.65

 

42.55

 

40.98

 

39.77

 

Revenue per diluted common share

$

5.40

 

5.14

 

4.52

 

4.47

 

4.50

 

4.37

 

Revenue per diluted common share, excluding non-GAAP adjustments

$

5.40

 

5.14

 

4.52

 

4.46

 

4.50

 

4.37

 

 

 

 

 

 

 

 

Investor information:

 

 

 

 

 

 

Closing sales price of common stock on last trading day of quarter

$

81.10

 

72.31

 

92.08

 

95.50

 

94.08

 

88.29

 

High closing sales price of common stock during quarter

$

87.66

 

91.42

 

110.41

 

104.72

 

98.00

 

92.94

 

Low closing sales price of common stock during quarter

$

68.68

 

68.56

 

90.46

 

90.20

 

83.84

 

84.25

 

 

 

 

 

 

 

 

Closing sales price of depositary shares on last trading day of quarter

$

25.33

 

25.19

 

26.72

 

28.21

 

28.14

 

29.13

 

High closing sales price of depositary shares during quarter

$

26.23

 

26.44

 

28.53

 

28.99

 

29.23

 

29.13

 

Low closing sales price of depositary shares during quarter

$

24.76

 

24.75

 

25.63

 

27.42

 

28.00

 

27.38

 

 

 

 

 

 

 

 

Other information:

 

 

 

 

 

 

Residential mortgage loan sales:

 

 

 

 

 

 

Gross loans sold

$

181,139

 

239,736

 

270,793

 

352,342

 

347,664

 

394,299

 

Gross fees (9)

$

3,189

 

6,523

 

5,700

 

10,098

 

11,215

 

15,552

 

Gross fees as a percentage of loans originated

 

1.76

%

2.72

%

2.11

%

2.87

%

3.23

%

3.94

%

Net gain on residential mortgage loans sold

$

1,117

 

2,150

 

4,066

 

4,244

 

7,814

 

6,700

 

Investment gains (losses) on sales of securities, net (14)

$

217

 

 

(61

)

393

 

 

366

 

Brokerage account assets, at quarter end (10)

$

7,220,405

 

6,761,480

 

7,158,939

 

7,187,085

 

6,597,152

 

6,344,416

 

Trust account managed assets, at quarter end

$

4,162,639

 

4,207,406

 

4,499,911

 

4,720,290

 

4,155,510

 

3,640,932

 

Core deposits (11)

$

30,748,817

 

30,011,444

 

30,398,683

 

29,316,911

 

27,170,367

 

25,857,639

 

Core deposits to total funding (11)

 

87.4

%

87.0

%

89.9

%

89.5

%

87.8

%

86.3

%

Risk-weighted assets

$

35,281,315

 

33,366,074

 

31,170,258

 

29,349,534

 

27,945,624

 

26,819,277

 

Number of offices

 

120

 

119

 

119

 

118

 

117

 

116

 

Total core deposits per office

$

256,240

 

252,197

 

255,451

 

248,448

 

232,225

 

222,911

 

Total assets per full-time equivalent employee

$

12,875

 

13,052

 

13,186

 

13,541

 

13,188

 

13,087

 

Annualized revenues per full-time equivalent employee

$

511.5

 

509.0

 

465.5

 

474.1

 

489.4

 

491.3

 

Annualized expenses per full-time equivalent employee

$

248.2

 

255.8

 

247.9

 

238.0

 

241.9

 

246.3

 

Number of employees (full-time equivalent)

 

3,184.5

 

3,074.0

 

2,988.0

 

2,841.0

 

2,769.5

 

2,706.0

 

Associate retention rate (12)

 

93.6

%

93.3

%

93.1

%

93.4

%

93.4

%

93.3

%

 

 

 

 

 

 

 

This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

 

 

 

RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED

 

 

 

 

 

Three months ended

 

Nine months ended

(dollars in thousands, except per share data)

September

June

September

 

September

September

2022

2022

2021

 

2022

2021

 

 

 

 

 

 

 

Net interest income

$

305,784

 

264,574

 

237,543

 

 

809,833

 

693,638

 

 

 

 

 

 

 

 

Noninterest income

 

104,805

 

125,502

 

104,095

 

 

333,803

 

295,011

 

Total revenues

 

410,589

 

390,076

 

341,638

 

 

1,143,636

 

988,649

 

Less: Investment (gains) losses on sales of securities, net

 

(217

)

 

 

 

(156

)

(366

)

Total revenues excluding the impact of adjustments noted above

$

410,372

 

390,076

 

341,638

 

 

1,143,480

 

988,283

 

 

 

 

 

 

 

 

Noninterest expense

$

199,253

 

196,038

 

168,851

 

 

577,952

 

489,687

 

Less: ORE expense (benefit)

 

(90

)

86

 

(79

)

 

101

 

(749

)

Noninterest expense excluding the impact of adjustments noted above

$

199,343

 

195,952

 

168,930

 

 

577,851

 

490,436

 

 

 

 

 

 

 

 

Pre-tax income

$

183,843

 

181,131

 

169,405

 

 

522,564

 

485,511

 

Provision for credit losses

 

27,493

 

12,907

 

3,382

 

 

43,120

 

13,451

 

Pre-tax pre-provision net revenue

 

211,336

 

194,038

 

172,787

 

 

565,684

 

498,962

 

Adjustments noted above

 

(307

)

86

 

(79

)

 

(55

)

(1,115

)

Adjusted pre-tax pre-provision net revenue (13)

$

211,029

 

194,124

 

172,708

 

 

565,629

 

497,847

 

 

 

 

 

 

 

 

Noninterest income

$

104,805

 

125,502

 

104,095

 

 

333,803

 

295,011

 

Less: Adjustments as noted above

 

(217

)

 

 

 

(156

)

(366

)

Noninterest income excluding the impact of adjustments noted above

$

104,588

 

125,502

 

104,095

 

 

333,647

 

294,645

 

 

 

 

 

 

 

 

Efficiency ratio (4)

 

48.53

%

50.26

%

49.42

%

 

50.54

%

49.53

%

Adjustments as noted above

 

0.05

%

(0.03

) %

0.03

%

 

(0.01

) %

0.10

%

Efficiency ratio (excluding adjustments noted above) (4)

 

48.58

%

50.23

%

49.45

%

 

50.53

%

49.63

%

 

 

 

 

 

 

 

Total average assets

$

40,464,649

 

38,780,786

 

35,896,130

 

 

39,300,913

 

35,207,543

 

 

 

 

 

 

 

 

Noninterest income to average assets (1)

 

1.03

%

1.30

%

1.15

%

 

1.14

%

1.12

%

Adjustments as noted above

 

%

%

%

 

%

%

Noninterest income (excluding adjustments noted above) to average assets (1)

 

1.03

%

1.30

%

1.15

%

 

1.14

%

1.12

%

 

 

 

 

 

 

 

Noninterest expense to average assets (1)

 

1.95

%

2.03

%

1.87

%

 

1.97

%

1.86

%

Adjustments as noted above

 

%

%

%

 

%

%

Noninterest expense (excluding adjustments noted above) to average assets (1)

 

1.95

%

2.03

%

1.87

%

 

1.97

%

1.86

%

 

 

 

 

 

 

 

This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

 

RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED

 

 

 

Three months ended

(dollars in thousands, except per share data)

September

June

March

December

September

June

2022

2022

2022

2021

2021

2021

Net income available to common shareholders

$

144,860

 

141,329

 

125,312

 

129,730

 

132,779

 

127,992

 

Investment (gains) losses on sales of securities, net

 

(217

)

 

61

 

(393

)

 

(366

)

ORE expense (benefit)

 

(90

)

86

 

105

 

37

 

(79

)

(657

)

Tax effect on adjustments noted above (17)

 

80

 

(22

)

(43

)

93

 

21

 

267

 

Net income available to common shareholders excluding adjustments noted above

$

144,633

 

141,393

 

125,435

 

129,467

 

132,721

 

127,236

 

 

 

 

 

 

 

 

Basic earnings per common share

$

1.91

 

1.87

 

1.66

 

1.72

 

1.76

 

1.70

 

Adjustment due to investment (gains) losses on sales of securities, net

 

 

 

 

(0.01

)

 

 

Adjustment due to ORE expense (benefit)

 

 

 

 

 

 

(0.01

)

Adjustment due to tax effect on adjustments noted above (17)

 

 

 

 

 

 

 

Basic earnings per common share excluding adjustments noted above

$

1.91

 

1.87

 

1.66

 

1.71

 

1.76

 

1.69

 

 

 

 

 

 

 

 

Diluted earnings per common share

$

1.91

 

1.86

 

1.65

 

1.71

 

1.75

 

1.69

 

Adjustment due to investment (gains) losses on sales of securities, net

 

 

 

 

(0.01

)

 

 

Adjustment due to ORE expense (benefit)

 

 

 

 

 

 

(0.01

)

Adjustment due to tax effect on adjustments noted above (17)

 

 

 

 

 

 

 

Diluted earnings per common share excluding the adjustments noted above

$

1.91

 

1.86

 

1.65

 

1.70

 

1.75

 

1.68

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue per diluted common share

$

5.40

 

5.14

 

4.52

 

4.47

 

4.50

 

4.37

 

Adjustments as noted above

 

 

 

 

(0.01

)

 

 

Revenue per diluted common share excluding adjustments noted above

$

5.40

 

5.14

 

4.52

 

4.46

 

4.50

 

4.37

 

 

 

 

 

 

 

 

Book value per common share at quarter end (8)

$

67.07

 

66.74

 

66.30

 

66.89

 

65.36

 

64.19

 

Adjustment due to goodwill, core deposit and other intangible assets

 

(24.63

)

(24.66

)

(24.65

)

(24.34

)

(24.38

)

(24.42

)

Tangible book value per common share at quarter end (8)

$

42.44

 

42.08

 

41.65

 

42.55

 

40.98

 

39.77

 

 

 

 

 

 

 

 

Paycheck Protection Program (PPP)

 

 

 

 

 

 

PPP net interest income

$

755

 

4,060

 

10,690

 

15,131

 

20,420

 

24,618

 

Income tax expense at statutory rates (17)

 

197

 

1,061

 

2,794

 

3,955

 

5,338

 

6,435

 

Earnings attributable to PPP

 

558

 

2,999

 

7,896

 

11,176

 

15,082

 

18,183

 

 

 

 

 

 

 

 

Basic earnings per common share attributable to PPP

$

0.01

 

0.04

 

0.10

 

0.15

 

0.20

 

0.24

 

Diluted earnings per common share attributable to PPP

$

0.01

 

0.04

 

0.10

 

0.15

 

0.20

 

0.24

 

 

 

 

 

 

 

 

Equity method investment (16)

 

 

 

 

 

 

Fee income from BHG, net of amortization

$

41,341

 

49,465

 

33,655

 

30,844

 

30,409

 

32,071

 

Funding cost to support investment

 

3,891

 

1,998

 

666

 

388

 

379

 

1,230

 

Pre-tax impact of BHG

 

37,450

 

47,467

 

32,989

 

30,456

 

30,030

 

30,841

 

Income tax expense at statutory rates (17)

 

9,789

 

12,408

 

8,623

 

7,961

 

7,850

 

8,062

 

Earnings attributable to BHG

$

27,661

 

35,059

 

24,366

 

22,495

 

22,180

 

22,779

 

 

 

 

 

 

 

 

Basic earnings per common share attributable to BHG

$

0.37

 

0.46

 

0.32

 

0.30

 

0.29

 

0.30

 

Diluted earnings per common share attributable to BHG

$

0.36

 

0.46

 

0.32

 

0.30

 

0.29

 

0.30

 

 

 

 

 

 

 

 

This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

 

 

 

RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED

 

 

 

 

 

 

Nine months ended

(dollars in thousands, except per share data)

 

September 30,

 

2022

2021

Net income available to common shareholders

 

$

411,501

 

382,401

 

Investment (gains) losses on sales of securities, net

 

 

(156

)

(366

)

ORE expense (benefit)

 

 

101

 

(749

)

Tax effect on adjustments noted above (17)

 

 

14

 

291

 

Net income available to common shareholders excluding adjustments noted above

 

$

411,460