FOR IMMEDIATE RELEASE

 
MEDIA CONTACT:
Nikki Klemmer, 615-743-6132
 
FINANCIAL CONTACT:
Harold Carpenter, 615-744-3742
 
WEBSITE:
www.pnfp.com

PNFP REPORTS FULLY DILUTED EPS UP 29.4% OVER SAME QUARTER LAST YEAR
Loans up 11.6% over same quarter last year

NASHVILLE, Tenn., Jan. 21, 2014 – Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) today reported net income per diluted common share of $0.44 for the quarter ended Dec. 31, 2013, compared to net income per diluted common share of $0.34 for the quarter ended Dec. 31, 2012, an increase of 29.4 percent. Net income per diluted common share was $1.67 for the year ended Dec. 31, 2013, compared to net income per diluted common share of $1.10 for the year ended Dec. 31, 2012, an increase of 51.8 percent.
Included in 2013 results were net reductions approximating $0.05 in earnings per share consisting of an $877,000 charge due to a Federal Home Loan Bank advance restructuring in the first quarter of 2013 and $1.47 million in net losses on sales of investment securities that occurred during the first three quarters of 2013.
"Our 2013 results represent another remarkable year for our shareholders and associates," said M. Terry Turner, Pinnacle's president and chief executive officer. "Loans increased more than $432 million during 2013, an 11.6 percent increase over last year. Our fourth quarter 2013 average noninterest bearing deposit balances increased 20.5 percent from last year's fourth quarter average balances, indicating that our deposit franchise continues to grow and gain momentum in two very attractive banking markets. We had a very successful recruiting year as we attracted several of the best bankers and investment professionals to our firm in 2013. Lastly, we initiated our quarterly cash dividend program in the fourth quarter of 2013. All of these factors give me great confidence in our ability to accomplish our targeted growth and profitability objectives in 2014 while continuing to enhance shareholder value."

GROWING THE CORE EARNINGS CAPACITY OF THE FIRM:
· Loans at Dec. 31, 2013 were a record $4.144 billion, an increase of $432.3 million from Dec. 31, 2012, reflecting year-over-year growth of 11.6 percent. Loan growth during the fourth quarter was $175.2 million compared to $43.9 million in the third quarter of 2013 and $187.0 million in the same quarter last year.
· Average balances of noninterest bearing deposit accounts were $1.179 billion in the fourth quarter of 2013, up 7.2 percent from the third quarter of 2013 and up 20.5 percent over the same quarter last year.
· Revenues (excluding securities gains and losses) for the quarter ended Dec. 31, 2013 were a record $57.5 million, an increase from $57.4 million in the third quarter of 2013 and up 7.7 percent over the $53.4 million for the same quarter last year.
· The firm's efficiency ratio for the quarter ended Dec. 31, 2013 was 56.8 percent compared to 59.5 percent in the third quarter of 2013 and 63.0 percent for the same quarter last year.

"I continue to be very impressed with the effectiveness of our client contact associates," Turner said. "Their ability to know and meet the needs of their current clients as well as attract new clients is providing the kind of operating leverage necessary to achieve our long-term profitability targets. Despite an economic landscape that yields only modest opportunities for net loan growth, we continue to take market share from larger competitors and believe that will be the case throughout 2014 as these associates continue to build their books of business in Nashville and Knoxville."

OTHER FOURTH QUARTER 2013 HIGHLIGHTS:
· Revenue growth
o
Net interest income for the quarter ended Dec. 31, 2013 was $45.0 million, compared to $44.6 million in the third quarter of 2013 and $42.2 million for the fourth quarter of 2012. Net interest income for the fourth quarter of 2013 was up 6.5 percent year-over-year and is at its highest quarterly level since the firm's founding in 2000.
§
Consistent with previously disclosed expectations, the firm's net interest margin decreased to 3.70 percent for the quarter ended Dec. 31, 2013, down from 3.72 percent last quarter and 3.80 percent for the quarter ended Dec. 31, 2012.
o Noninterest income for the quarter ended Dec. 31, 2013 was $12.5 million, compared to $11.4 million for the third quarter of 2013 and $13.1 million for the same quarter last year. Excluding securities gains and losses in each period, noninterest income was up 12.3 percent over the same quarter last year.
§
Wealth management revenues, which include investment services, insurance and trust fees, were $4.40 million during the fourth quarter of 2013, compared to $3.91 million during the third quarter of 2013 and $3.96 million during the fourth quarter of 2012.
§ Gains on mortgage loans sold, net of commissions, were $1.11 million during the fourth quarter of 2013, compared to $1.33 million during the third quarter of 2013 and $1.77 million during the fourth quarter of 2012.
§ Other noninterest income for the fourth quarter of 2013 increased by $1.47 million over the fourth quarter of 2012. 


"We are pleased that 2013 total revenues grew 7.7 percent over 2012," said Harold R. Carpenter, Pinnacle's chief financial officer. "Given that our revenue growth is all organic, we believe that increase will compare favorably to other peer banks. Also, primarily due to our ability to produce meaningful net loan growth, we continued our track record for growing net interest income despite some shrinkage in the net interest margin. That said, we believe our net interest margin should remain between 3.70 and 3.80 percent in 2014."

· Noninterest and income tax expense
o
Noninterest expense for the year ended Dec. 31, 2013 was $129.3 million, compared to $138.2 million for the prior year. Noninterest expense for 2013, excluding other real estate expenses and FHLB restructuring charges, was $125.3 million, representing only a 0.6 percent increase over 2012. Noninterest expense for the quarter ended Dec. 31, 2013 was $32.6 million, compared to $33.3 million in the third quarter of 2013 and $34.9 million in the fourth quarter of 2012.
§ Salaries and employee benefits costs were up from the third quarter of 2013 by approximately $485,000 and by $1.94 million from the fourth quarter of 2012.
§ Other real estate expenses were $302,000 in the fourth quarter of 2013, compared to $700,000 in the third quarter of 2013 and $1.36 million in the fourth quarter of 2012.
o
Income tax expense was $7.27 million for the fourth quarter of 2013, compared to $7.31 million in the third quarter of 2013 and $6.28 million in the fourth quarter of 2012. The effective tax rate for 2013 is 32.8 percent compared to 33.0 percent in 2012.

"We are pleased to report that our expenses, excluding other real estate expenses and FHLB restructuring charges, ended the year at $125.3 million, representing only a 0.6 percent increase over 2012, further validating our ability to grow our revenues without significant incremental costs," Carpenter said. "This represents a significant effort by the operational leaders and associates throughout our firm. As we move forward into 2014, as has been our strategy for the past two years, we will remain diligent on expense containment while continuing to focus on growing the core revenue capacity of our firm.
 
"We expect our expense base in 2014 to increase slightly over our fourth quarter run rate due to the usual merit raises that occur in the first part of each year. Also, we intend to continue hiring new revenue-producing associates in 2014, as we have throughout the history of the firm. We believe we have built a very effective platform going into 2014 that should allow our firm to achieve an enhanced level of profitability, consistently operating within or better than the target ranges for each of the key operating metrics we began discussing two years ago."

· Asset Quality
o Nonperforming assets declined by $2.10 million from Sept. 30, 2013, a linked-quarter reduction of 5.92 percent and the 14th consecutive quarterly reduction. Nonperforming assets were 0.80 percent of total loans and ORE at Dec. 31, 2013, compared to 1.11 percent at Dec. 31, 2012 and 0.89 percent at Sept. 30, 2013.
o Classified assets as a percentage of Pinnacle Bank's Tier 1 capital plus allowance were 18.5 percent at Dec. 31, 2013, compared to 20.6 percent at Sept. 30, 2013 and 29.4 percent at Dec. 31, 2012.
o Allowance for loan losses represented 1.64 percent of total loans at Dec. 31, 2013, compared to 1.70 percent at Sept. 30, 2013 and 1.87 percent at Dec. 31, 2012. The ratio of the allowance for loan losses to nonperforming loans increased to 373.8 percent at Dec. 31, 2013, from 336.6 percent at Sept. 30, 2013 and 304.2 percent at Dec. 31, 2012.
§ Net charge-offs were $1.54 million for the quarter ended Dec. 31, 2013, compared to $2.10 million for the third quarter of 2013 and $2.16 million for the quarter ended Dec. 31, 2012. Annualized net charge-offs for the quarter ended Dec. 31, 2013 were 0.15 percent compared to 0.24 percent for the quarter ended Dec. 31, 2012. Net charge-offs for the year ended Dec. 31, 2013 were 0.24 percent.
§ Provision for loan losses decreased from $2.49 million for the fourth quarter of 2012 to $2.23 million for the fourth quarter of 2013.



WEBCAST AND CONFERENCE CALL INFORMATION

Pinnacle will host a webcast and conference call at 8:30 a.m. (CST) on Jan. 22, 2014 to discuss fourth quarter 2013 results and other matters. To access the call for audio only, please call 1-877-602-7944. For the presentation and streaming audio, please access the webcast on the investor relations page of Pinnacle's website at www.pnfp.com.
For those unable to participate in the webcast, it will be archived on the investor relations page of Pinnacle's website at www.pnfp.com for 90 days following the presentation.
Pinnacle Financial Partners provides a full range of banking, investment, 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 began operations in a single downtown Nashville location in October 2000 and has since grown to $5.6 billion in assets at Dec. 31, 2013. At Dec. 31, 2013, Pinnacle is the second-largest bank holding company headquartered in Tennessee, with 29 offices in eight Middle Tennessee counties and four offices in Knoxville. Additionally, Great Place to Work® named Pinnacle one of the best workplaces in the United States on its 2013 Best Small & Medium Workplaces list published in FORTUNE magazine. The American Banker also recognized Pinnacle as the best bank to work for in the country.
Additional information concerning Pinnacle, which is included in the NASDAQ Financial-100 Index, can be accessed at www.pnfp.com.


###

Certain of the statements in this release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "expect," "anticipate," "goal," "objective," "intend," "plan," "believe," "should," "seek," "estimate" and similar expressions are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking. All forward-looking statements are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of Pinnacle Financial to differ materially from any results expressed or implied by such forward-looking statements. Such risks include, without limitation, (i) deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses; (ii) continuation of the historically low short-term interest rate environment; (iii) the inability of Pinnacle Financial to grow its loan portfolio; (iv) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (v) effectiveness of Pinnacle Financial's asset management activities in improving, resolving or liquidating lower-quality assets; (vi) increased competition with other financial institutions; (vii) greater than anticipated adverse conditions in the national or local economies including the Nashville-Davidson-Murfreesboro-Franklin MSA and the Knoxville MSA, particularly in commercial and residential real estate markets; (viii) rapid fluctuations or unanticipated changes in interest rates on loans or deposits; (ix) the results of regulatory examinations; (x) the ability to retain large, uninsured deposits; (xi) the development of any new market other than Nashville or Knoxville; (xii) a merger or acquisition; (xiii) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including intangible assets; (xiv) the ability to attract additional financial advisors or to attract customers from other financial institutions; (xv) further deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xvi) inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies and required capital maintenance levels; (xvii) risks associated with litigation, including the applicability of insurance coverage; (xviii) approval of the declaration of any dividend by Pinnacle Financial's board of directors and, (xix) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, including regulatory or legislative developments arising out of current unsettled conditions in the economy, including implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act. A more detailed description of these and other risks is contained in Pinnacle Financial's most recent annual report on Form 10-K filed with the Securities and Exchange Commission on February 22, 2013 and Pinnacle Financial's quarterly report on Form 10-Q filed with the Securities and Exchange Commission in 2013.  Many of such factors are beyond Pinnacle Financial's ability to control or predict, and readers are cautioned not to put undue reliance on such forward-looking statements. Pinnacle Financial disclaims any obligation to update or revise any forward-looking statements contained in this release, whether as a result of new information, future events or otherwise.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
 
CONSOLIDATED BALANCE SHEETS – UNAUDITED
 
 
 
   
 
 
 
December 31, 2013
   
December 31, 2012
 
ASSETS
 
   
 
Cash and noninterest-bearing due from banks
 
$
79,785,004
   
$
51,946,542
 
Interest-bearing due from banks
   
124,509,486
     
111,535,083
 
Federal funds sold and other
   
4,644,247
     
1,807,044
 
Cash and cash equivalents
   
208,938,737
     
165,288,669
 
 
               
Securities available-for-sale, at fair value
   
693,456,314
     
706,577,806
 
Securities held-to-maturity (fair value of $38,817,467 and $583,212 at
               
        December 31, 2013 and 2012, respectively)
   
39,795,649
     
574,863
 
Mortgage loans held-for-sale
   
12,850,339
     
41,194,639
 
 
               
Loans
   
4,144,493,486
     
3,712,162,430
 
Less allowance for loan losses
   
(67,969,693
)
   
(69,417,437
)
Loans, net
   
4,076,523,793
     
3,642,744,993
 
 
               
Premises and equipment, net
   
72,649,574
     
75,804,895
 
Other investments
   
33,226,195
     
26,962,890
 
Accrued interest receivable
   
15,406,389
     
14,856,615
 
Goodwill
   
243,651,006
     
244,040,421
 
Core deposit and other intangible assets
   
3,840,750
     
5,103,273
 
Other real estate owned
   
15,226,136
     
18,580,097
 
Other assets
   
148,210,975
     
98,819,455
 
Total assets
 
$
5,563,775,857
   
$
5,040,548,616
 
 
               
LIABILITIES AND STOCKHOLDERS' EQUITY
               
Deposits:
               
Noninterest-bearing
 
$
1,167,414,487
   
$
985,689,460
 
Interest-bearing
   
884,294,802
     
760,786,247
 
Savings and money market accounts
   
1,962,714,398
     
1,662,256,403
 
Time
   
519,049,037
     
606,455,873
 
Total deposits
   
4,533,472,724
     
4,015,187,983
 
Securities sold under agreements to repurchase
   
70,465,326
     
114,667,475
 
Federal Home Loan Bank advances
   
90,637,328
     
75,850,390
 
Subordinated debt and other borrowings
   
98,658,292
     
106,158,292
 
Accrued interest payable
   
792,703
     
1,360,598
 
Other liabilities
   
46,041,823
     
48,252,519
 
Total liabilities
   
4,840,068,196
     
4,361,477,257
 
 
               
Stockholders' equity:
               
Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding
   
-
     
-
 
Common stock, par value $1.00; 90,000,000 shares authorized; 35,221,941 shares and 34,696,597
               
  shares issued and outstanding at December 31, 2013 and 2012, respectively
   
35,221,941
     
34,696,597
 
Additional paid-in capital
   
550,212,135
     
543,760,439
 
Retained earnings
   
142,298,199
     
87,386,689
 
Accumulated other comprehensive (loss) income, net of taxes
   
(4,024,614
)
   
13,227,634
 
Stockholders' equity
   
723,707,661
     
679,071,359
 
Total liabilities and stockholders' equity
 
$
5,563,775,857
   
$
5,040,548,616
 
 
               
This information is preliminary and based on company data available at the time of the presentation.
               
 
               


PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
   
   
   
 
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED
 
 
   
   
 
 
 
Three Months Ended
   
Twelve Months Ended
 
 
 
December 31,
   
December 31,
 
 
 
2013
   
2012
   
2013
   
2012
 
Interest income:
 
   
   
   
 
Loans, including fees
 
$
42,811,184
   
$
41,705,546
   
$
169,252,739
   
$
160,036,709
 
Securities
                               
Taxable
   
3,644,318
     
3,574,460
     
14,504,464
     
16,931,417
 
Tax-exempt
   
1,636,905
     
1,604,162
     
6,378,345
     
6,576,701
 
Federal funds sold and other
   
312,119
     
318,900
     
1,146,867
     
1,876,731
 
Total interest income
   
48,404,526
     
47,203,068
     
191,282,415
     
185,421,558
 
 
                               
Interest expense:
                               
Deposits
   
2,644,630
     
3,730,199
     
11,721,387
     
16,842,852
 
Securities sold under agreements to repurchase
   
34,535
     
85,094
     
238,775
     
455,499
 
Federal Home Loan Bank advances and other borrowings
   
756,896
     
1,144,741
     
3,423,617
     
5,258,749
 
Total interest expense
   
3,436,061
     
4,960,034
     
15,383,779
     
22,557,100
 
Net interest income
   
44,968,465
     
42,243,034
     
175,898,636
     
162,864,458
 
Provision for loan losses
   
2,225,114
     
2,487,938
     
7,856,522
     
5,568,830
 
Net interest income after provision for loan losses
   
42,743,351
     
39,755,096
     
168,042,114
     
157,295,628
 
 
                               
Noninterest income:
                               
Service charges on deposit accounts
   
2,739,076
     
2,622,709
     
10,557,528
     
9,917,754
 
Investment services
   
2,394,735
     
2,050,708
     
8,038,425
     
6,984,970
 
Insurance sales commissions
   
1,014,720
     
1,045,459
     
4,537,150
     
4,461,404
 
Gain on mortgage loans sold, net
   
1,113,000
     
1,768,428
     
6,243,411
     
6,698,618
 
Investment gains and losses on sales and impairments, net
   
-
     
1,987,872
     
(1,466,475
)
   
2,150,605
 
Trust fees
   
991,162
     
863,234
     
3,747,241
     
3,195,950
 
Other noninterest income
   
4,235,528
     
2,769,456
     
15,446,298
     
9,987,335
 
Total noninterest income
   
12,488,221
     
13,107,866
     
47,103,578
     
43,396,636
 
 
                               
Noninterest expense:
                               
Salaries and employee benefits
   
21,494,178
     
19,556,285
     
82,646,967
     
78,056,564
 
Equipment and occupancy
   
5,543,380
     
5,202,436
     
21,273,454
     
20,420,333
 
Other real estate expense
   
302,267
     
1,364,495
     
3,113,046
     
11,544,067
 
Marketing and other business development
   
1,140,233
     
1,276,050
     
3,638,941
     
3,635,810
 
Postage and supplies
   
559,362
     
562,805
     
2,249,950
     
2,379,730
 
Amortization of intangibles
   
246,676
     
683,430
     
1,262,524
     
2,738,994
 
Other noninterest expense
   
3,350,488
     
6,205,765
     
15,076,332
     
19,389,368
 
Total noninterest expense
   
32,636,584
     
34,851,266
     
129,261,214
     
138,164,866
 
Income before income taxes
   
22,594,988
     
18,011,696
     
85,884,478
     
62,527,398
 
Income tax expense
   
7,274,394
     
6,281,538
     
28,158,277
     
20,643,517
 
Net income
   
15,320,594
     
11,730,158
     
57,726,201
     
41,883,881
 
Preferred dividends
   
-
     
-
     
-
     
1,660,868
 
Accretion on preferred stock discount
   
-
     
-
     
-
     
2,153,172
 
Net income available to common stockholders
 
$
15,320,594
   
$
11,730,158
   
$
57,726,201
   
$
38,069,841
 
 
                               
Per share information:
                               
Basic net income per common share available to common stockholders
 
$
0.45
   
$
0.35
   
$
1.69
   
$
1.12
 
Diluted net income per common share available to common stockholders
 
$
0.44
   
$
0.34
   
$
1.67
   
$
1.10
 
 
                               
Weighted average shares outstanding:
                               
Basic
   
34,355,691
     
33,960,664
     
34,200,770
     
33,899,667
 
Diluted
   
34,765,424
     
34,527,479
     
34,509,261
     
34,487,808
 
 
                               
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
 
 
2013
   
2013
   
2013
   
2013
   
2012
   
2012
 
 
 
   
   
   
   
   
 
Balance sheet data, at quarter end:
 
   
   
   
   
   
 
Commercial real estate - mortgage loans
 
$
1,383,435
     
1,326,838
     
1,308,873
     
1,278,639
     
1,178,196
     
1,167,136
 
Consumer real estate  - mortgage loans
   
695,616
     
687,259
     
697,490
     
675,632
     
679,927
     
680,890
 
Construction and land development loans
   
316,191
     
319,973
     
298,509
     
306,433
     
313,552
     
312,788
 
Commercial and industrial loans
   
1,605,547
     
1,513,632
     
1,504,086
     
1,403,428
     
1,446,577
     
1,279,050
 
Consumer and other
   
143,704
     
121,600
     
116,407
     
108,232
     
93,910
     
85,300
 
Total loans
   
4,144,493
     
3,969,302
     
3,925,365
     
3,772,364
     
3,712,162
     
3,525,164
 
Allowance for loan losses
   
(67,970
)
   
(67,280
)
   
(68,695
)
   
(69,411
)
   
(69,417
)
   
(69,092
)
Securities
   
733,252
     
743,885
     
727,889
     
724,004
     
707,153
     
739,280
 
Total assets
   
5,563,776
     
5,391,201
     
5,373,168
     
5,070,935
     
5,040,549
     
4,871,386
 
Noninterest-bearing deposits
   
1,167,414
     
1,138,421
     
1,098,887
     
977,496
     
985,689
     
844,480
 
Total deposits
   
4,533,473
     
4,333,543
     
4,096,578
     
3,902,895
     
4,015,188
     
3,719,287
 
Securities sold under agreements to repurchase
   
70,465
     
84,032
     
117,346
     
129,100
     
114,667
     
134,787
 
FHLB advances
   
90,637
     
115,671
     
325,762
     
200,796
     
75,850
     
190,887
 
Subordinated debt and other borrowings
   
98,658
     
99,283
     
99,908
     
105,533
     
106,158
     
106,783
 
Total stockholders' equity
   
723,708
     
712,216
     
696,569
     
691,434
     
679,071
     
672,824
 
 
                                               
Balance sheet data, quarterly averages:
                                               
Total loans
 
$
3,981,214
     
3,932,218
     
3,845,476
     
3,681,686
     
3,580,056
     
3,488,736
 
Securities
   
731,651
     
739,625
     
745,969
     
714,104
     
719,861
     
766,547
 
Total earning assets
   
4,903,233
     
4,825,552
     
4,710,534
     
4,513,273
     
4,493,216
     
4,379,742
 
Total assets
   
5,388,371
     
5,313,003
     
5,210,600
     
4,992,018
     
4,964,521
     
4,860,394
 
Noninterest-bearing deposits
   
1,179,340
     
1,100,532
     
1,012,718
     
952,853
     
978,366
     
799,508
 
Total deposits
   
4,407,806
     
4,198,779
     
3,963,393
     
3,949,742
     
3,883,423
     
3,705,672
 
Securities sold under agreements to repurchase
   
85,096
     
110,123
     
129,550
     
130,740
     
142,333
     
136,918
 
FHLB advances
   
42,012
     
181,392
     
293,581
     
98,989
     
124,781
     
214,271
 
Subordinated debt and other borrowings
   
100,030
     
100,995
     
102,573
     
106,777
     
108,489
     
112,406
 
Total stockholders' equity
   
722,919
     
705,275
     
699,559
     
688,241
     
680,383
     
669,673
 
 
                                               
Statement of operations data, for the three months ended:
                                               
Interest income
 
$
48,405
     
48,177
     
47,544
     
47,156
     
47,203
     
46,441
 
Interest expense
   
3,436
     
3,604
     
3,945
     
4,398
     
4,960
     
5,509
 
Net interest income
   
44,969
     
44,573
     
43,599
     
42,758
     
42,243
     
40,932
 
Provision for loan losses
   
2,225
     
685
     
2,774
     
2,172
     
2,488
     
1,413
 
Net interest income after provision for loan losses
   
42,744
     
43,888
     
40,825
     
40,586
     
39,755
     
39,519
 
Noninterest income
   
12,488
     
11,387
     
11,326
     
11,902
     
13,108
     
10,430
 
Noninterest expense
   
32,636
     
33,323
     
30,862
     
32,440
     
34,851
     
33,578
 
Income before taxes
   
22,597
     
21,952
     
21,289
     
20,048
     
18,012
     
16,371
 
Income tax expense
   
7,274
     
7,305
     
6,978
     
6,600
     
6,282
     
5,022
 
Net income
 
$
15,321
     
14,647
     
14,311
     
13,448
     
11,730
     
11,349
 
 
                                               
Profitability and other ratios:
                                               
Return on avg. assets (1)
   
1.13
%
   
1.09
%
   
1.10
%
   
1.09
%
   
0.94
%
   
0.93
%
Return on avg. equity (1)
   
8.41
%
   
8.24
%
   
8.21
%
   
7.92
%
   
6.86
%
   
6.74
%
Return on avg. tangible equity (1)
   
12.80
%
   
12.71
%
   
12.72
%
   
12.41
%
   
10.83
%
   
10.76
%
Dividend payout ratio (18)
   
20.40
%
   
-
     
-
     
-
     
-
     
-
 
Net interest margin (1) (2)
   
3.70
%
   
3.72
%
   
3.77
%
   
3.90
%
   
3.80
%
   
3.78
%
Noninterest income to total revenue (3)
   
21.73
%
   
20.35
%
   
20.62
%
   
21.77
%
   
23.68
%
   
20.31
%
Noninterest income to avg. assets (1)
   
0.92
%
   
0.85
%
   
0.87
%
   
0.97
%
   
1.05
%
   
0.85
%
Noninterest exp. to avg. assets (1)
   
2.40
%
   
2.49
%
   
2.38
%
   
2.64
%
   
2.79
%
   
2.75
%
Noninterest expense (excluding ORE and FHLB
                                               
       restructuring charges) to avg. assets (1)
   
2.38
%
   
2.44
%
   
2.27
%
   
2.51
%
   
2.52
%
   
2.55
%
Efficiency ratio (4)
   
56.80
%
   
59.55
%
   
56.19
%
   
59.35
%
   
62.96
%
   
65.38
%
Avg. loans to average deposits
   
90.32
%
   
93.65
%
   
97.02
%
   
93.21
%
   
92.19
%
   
94.15
%
Securities to total assets
   
13.18
%
   
13.80
%
   
13.55
%
   
14.28
%
   
14.03
%
   
15.18
%
 
                                               
 
                                               
 
                                               
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, 2013
   
December 31, 2012
 
 
 
Average Balances
   
Interest
   
Rates/ Yields
   
Average Balances
   
Interest
   
Rates/ Yields
 
Interest-earning assets
 
   
   
   
   
   
 
Loans (1)
 
$
3,981,214
   
$
42,811
     
4.28
%
 
$
3,580,056
   
$
41,706
     
4.64
%
Securities
                                               
Taxable
   
552,960
     
3,644
     
2.61
%
   
541,678
     
3,574
     
2.63
%
Tax-exempt (2)
   
178,691
     
1,637
     
4.85
%
   
178,183
     
1,604
     
4.78
%
Federal funds sold and other
   
190,368
     
313
     
0.76
%
   
193,299
     
319
     
0.77
%
Total interest-earning assets
   
4,903,233
   
$
48,405
     
3.98
%
   
4,493,216
     
47,203
     
4.24
%
Nonearning assets
                                               
Intangible assets
   
247,706
                     
249,574
                 
Other nonearning assets
   
237,432
                     
221,731
                 
Total assets
 
$
5,388,371
                   
$
4,964,521
                 
 
                                               
Interest-bearing liabilities
                                               
Interest-bearing deposits:
                                               
Interest checking
 
$
812,323
   
$
386
     
0.19
%
 
$
688,196
   
$
558
     
0.32
%
Savings and money market
   
1,883,788
     
1,420
     
0.30
%
   
1,611,639
     
1,816
     
0.45
%
Time
   
532,355
     
839
     
0.63
%
   
605,222
     
1,356
     
0.89
%
Total interest-bearing deposits
   
3,228,466
     
2,645
     
0.32
%
   
2,905,057
     
3,730
     
0.51
%
Securities sold under agreements to repurchase
   
85,096
     
35
     
0.16
%
   
142,333
     
85
     
0.24
%
Federal Home Loan Bank advances
   
42,012
     
103
     
0.97
%
   
124,781
     
390
     
1.24
%
Subordinated debt and other borrowings
   
100,030
     
653
     
2.60
%
   
108,489
     
755
     
2.77
%
Total interest-bearing liabilities
   
3,455,604
     
3,436
     
0.39
%
   
3,280,660
     
4,960
     
0.60
%
Noninterest-bearing deposits
   
1,179,340
     
-
     
-
     
978,366
     
-
     
-
 
Total deposits and interest-bearing liabilities
   
4,634,944
   
$
3,436
     
0.29
%
   
4,259,026
   
$
4,960
     
0.46
%
Other liabilities
   
30,508
                     
25,112
                 
Stockholders' equity 
   
722,919
                     
680,383
                 
Total liabilities and stockholders' equity
 
$
5,388,371
                   
$
4,964,521
                 
Net interest income 
         
$
44,969
                   
$
42,243
         
Net interest spread (3)
                   
3.58
%
                   
3.64
%
Net interest margin (4)
                   
3.70
%
                   
3.80
%
 
                                               
 
                                               
 
                                               
(1) Average balances of nonperforming loans are included in the above amounts.
                                 
(2) Yields computed on tax-exempt instruments on a tax equivalent basis.
                                         
(3) Yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. The net interest spread calculation excludes the impact of demand deposits. Had the impact of demand deposits been included, the net interest spread for the quarter ended December 31, 2013 would have been 3.68% compared to a net interest spread of 3.78% for the quarter ended December 31, 2012.
 
(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, 2013
   
December 31, 2012
 
 
 
Average Balances
   
Interest
   
Rates/ Yields
   
Average Balances
   
Interest
   
Rates/ Yields
 
Interest-earning assets
 
   
   
   
   
   
 
Loans (1)
 
$
3,861,166
   
$
169,253
     
4.40
%
 
$
3,438,401
   
$
160,037
     
4.66
%
Securities
                                               
Taxable
   
559,702
     
14,504
     
2.59
%
   
612,677
     
16,931
     
2.76
%
Tax-exempt (2)
   
173,202
     
6,378
     
4.91
%
   
182,217
     
6,577
     
4.82
%
Federal funds sold and other
   
144,948
     
1,147
     
0.93
%
   
155,876
     
1,877
     
1.33
%
Total interest-earning assets
   
4,739,018
   
$
191,282
     
4.10
%
   
4,389,171
   
$
185,422
     
4.29
%
Nonearning assets
                                               
Intangible assets
   
248,291
                     
250,619
                 
Other nonearning assets
   
240,018
                     
233,764
                 
Total assets
 
$
5,227,327
                   
$
4,873,554
                 
 
                                               
Interest-bearing liabilities
                                               
Interest-bearing deposits:
                                               
Interest checking
 
$
790,365
   
$
1,928
     
0.24
%
 
$
677,632
   
$
2,800
     
0.41
%
Savings and money market
   
1,714,154
     
5,795
     
0.34
%
   
1,575,174
     
7,884
     
0.50
%
Time
   
564,766
     
3,998
     
0.71
%
   
644,039
     
6,158
     
0.96
%
Total interest-bearing deposits
   
3,069,285
     
11,721
     
0.38
%
   
2,896,845
     
16,842
     
0.58
%
Securities sold under agreements to repurchase
   
113,742
     
239
     
0.21
%
   
134,989
     
455
     
0.34
%
Federal Home Loan Bank advances
   
153,912
     
690
     
0.45
%
   
202,338
     
2,237
     
1.11
%
Subordinated debt and other borrowings
   
102,571
     
2,733
     
2.67
%
   
105,131
     
3,024
     
2.87
%
Total interest-bearing liabilities
   
3,439,510
     
15,383
     
0.45
%
   
3,339,303
     
22,558
     
0.68
%
Noninterest-bearing deposits
   
1,062,089
     
-
     
-
     
809,268
     
-
     
-
 
Total deposits and interest-bearing liabilities
   
4,501,599
   
$
15,383
     
0.34
%
   
4,148,571
   
$
22,558
     
0.54
%
Other liabilities
   
21,631
                     
27,933
                 
Stockholders' equity 
   
704,097
                     
697,050
                 
Total liabilities and stockholders' equity
 
$
5,227,327
                   
$
4,873,554
                 
Net interest income 
         
$
175,899
                   
$
162,864
         
Net interest spread (3)
                   
3.65
%
                   
3.61
%
Net interest margin (4)
                   
3.77
%
                   
3.77
%
 
                                               
 
                                               
 
                                               
(1) Average balances of nonperforming loans are included in the above amounts.
                                 
(2) Yields computed on tax-exempt instruments on a tax equivalent basis.
                                         
(3) Yields realized on interest-earning assets less the rates paid on interest-bearing liabilities.The net interest spread calculation excludes the impact of demand deposits. Had the impact of demand deposits been included, the net interest spread for the twelve months ended December 31, 2013 would have been 3.75% compared to a net interest spread of 3.75% for the twelve months ended December 31, 2012.
 
(4) Net interest margin is the result of 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
 
 
2013
   
2013
   
2013
   
2013
   
2012
   
2012
 
 
 
   
   
   
   
   
 
Asset quality information and ratios:
 
   
   
   
   
   
 
Nonperforming assets:
 
   
   
   
   
   
 
    Nonaccrual loans
 
$
18,183
     
19,989
     
20,561
     
21,837
     
22,823
     
36,571
 
    Other real estate (ORE)
   
15,226
     
15,522
     
15,992
     
16,802
     
18,580
     
21,817
 
Total nonperforming assets
 
$
33,409
     
35,511
     
36,553
     
38,639
     
41,403
     
58,388
 
Past due loans over 90 days and still
                                               
    accruing interest
 
$
3,057
     
-
     
747
     
152
     
-
     
162
 
Troubled debt restructurings (5)
 
$
19,647
     
19,661
     
20,427
     
20,667
     
27,450
     
24,090
 
Net loan charge-offs
 
$
1,535
     
2,100
     
3,491
     
2,178
     
2,163
     
1,935
 
Allowance for loan losses to nonperforming loans
   
373.8
%
   
336.6
%
   
334.1
%
   
317.9
%
   
304.2
%
   
188.9
%
As a percentage of total loans:
                                               
Past due accruing loans over 30 days
   
0.31
%
   
0.33
%
   
0.39
%
   
0.23
%
   
0.29
%
   
0.35
%
Potential problem loans (6)
   
1.51
%
   
1.80
%
   
2.11
%
   
2.57
%
   
2.84
%
   
3.13
%
Allowance for loan losses
   
1.64
%
   
1.70
%
   
1.75
%
   
1.84
%
   
1.87
%
   
1.96
%
Nonperforming assets to total loans and ORE
   
0.80
%
   
0.89
%
   
0.93
%
   
1.02
%
   
1.11
%
   
1.65
%
Nonperforming assets to total assets
   
0.60
%
   
0.66
%
   
0.68
%
   
0.76
%
   
0.82
%
   
1.20
%
    Classified asset ratio (Pinnacle Bank) (8)
   
18.5
%
   
20.6
%
   
23.3
%
   
26.4
%
   
29.4
%
   
33.4
%
Annualized net loan charge-offs year-to-date
                                               
    to avg. loans (7)
   
0.24
%
   
0.27
%
   
0.30
%
   
0.24
%
   
0.29
%
   
0.31
%
Avg. commercial loan internal risk ratings (6)
   
4.5
     
4.5
     
4.5
     
4.5
     
4.5
     
4.6
 
 
                                               
Interest rates and yields:
                                               
Loans
   
4.28
%
   
4.33
%
   
4.41
%
   
4.58
%
   
4.64
%
   
4.62
%
Securities
   
3.16
%
   
3.04
%
   
3.03
%
   
3.34
%
   
3.16
%
   
3.19
%
Total earning assets
   
3.98
%
   
4.02
%
   
4.10
%
   
4.30
%
   
4.24
%
   
4.28
%
Total deposits, including non-interest bearing
   
0.24
%
   
0.26
%
   
0.30
%
   
0.35
%
   
0.38
%
   
0.43
%
Securities sold under agreements to repurchase
   
0.16
%
   
0.20
%
   
0.22
%
   
0.24
%
   
0.24
%
   
0.29
%
FHLB advances
   
0.97
%
   
0.38
%
   
0.31
%
   
0.78
%
   
1.24
%
   
1.15
%
Subordinated debt and other borrowings
   
2.60
%
   
2.62
%
   
2.72
%
   
2.72
%
   
2.77
%
   
2.84
%
Total deposits and interest-bearing liabilities
   
0.29
%
   
0.31
%
   
0.35
%
   
0.42
%
   
0.46
%
   
0.53
%
 
                                               
Pinnacle Financial Partners capital ratios (8):
                                               
Stockholders' equity to total assets
   
13.0
%
   
13.2
%
   
13.0
%
   
13.6
%
   
13.5
%
   
13.8
%
Leverage
   
10.9
%
   
10.8
%
   
10.7
%
   
10.8
%
   
10.6
%
   
10.5
%
Tier one risk-based
   
11.8
%
   
12.0
%
   
11.7
%
   
11.7
%
   
11.8
%
   
12.1
%
Total risk-based
   
13.0
%
   
13.2
%
   
12.9
%
   
13.0
%
   
13.0
%
   
13.4
%
Tier one common equity to risk-weighted assets
   
10.1
%
   
10.2
%
   
9.9
%
   
9.9
%
   
9.9
%
   
10.1
%
Tangible common equity to tangible assets
   
9.0
%
   
9.0
%
   
8.8
%
   
9.2
%
   
9.0
%
   
9.2
%
    Pinnacle Bank ratios:
                                               
     Leverage
   
10.5
%
   
10.5
%
   
10.5
%
   
10.7
%
   
10.5
%
   
10.5
%
     Tier one risk-based
   
11.3
%
   
11.6
%
   
11.5
%
   
11.6
%
   
11.6
%
   
12.0
%
     Total risk-based
   
12.6
%
   
12.9
%
   
12.7
%
   
12.8
%
   
12.9
%
   
13.3
%
 
                                               
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
 
 
2013
   
2013
   
2013
   
2013
   
2012
   
2012
 
 
 
   
   
   
   
   
 
Per share data:
 
   
   
   
   
   
 
Earnings  – basic
 
$
0.45
     
0.43
     
0.42
     
0.40
     
0.35
     
0.33
 
Earnings  – diluted
 
$
0.44
     
0.42
     
0.42
     
0.39
     
0.34
     
0.33
 
Common dividends per share
 
$
0.08
     
-
     
-
     
-
     
-
     
-
 
Book value per common share at quarter end (9)
 
$
20.55
     
20.27
     
19.86
     
19.74
     
19.57
     
19.39
 
Tangible common equity per common share
 
$
13.52
     
13.22
     
12.78
     
12.64
     
12.39
     
12.19
 
 
                                               
Weighted avg. common shares – basic
   
34,355,691
     
34,282,899
     
34,172,274
     
33,987,265
     
33,960,664
     
33,939,248
 
Weighted avg. common shares – diluted
   
34,765,424
     
34,606,567
     
34,431,054
     
34,206,202
     
34,527,479
     
34,523,076
 
Common shares outstanding
   
35,221,941
     
35,133,733
     
35,073,763
     
35,022,487
     
34,696,597
     
34,691,659
 
 
                                               
Investor information:
                                               
Closing sales price
 
$
32.53
     
29.81
     
25.71
     
23.36
     
18.84
     
19.32
 
High closing sales price during quarter
 
$
33.25
     
29.99
     
26.17
     
23.73
     
20.60
     
20.38
 
Low closing sales price during quarter
 
$
29.67
     
26.56
     
21.68
     
19.29
     
18.05
     
18.88
 
 
                                               
Other information:
                                               
Gains on mortgage loans sold:
                                               
Mortgage loan sales:
                                               
Gross loans sold
 
$
70,194
     
105,817
     
123,181
     
120,569
     
132,485
     
130,277
 
Gross fees (10)
 
$
1,842
     
2,470
     
3,346
     
3,158
     
3,269
     
3,193
 
Gross fees as a percentage of loans originated
   
2.62
%
   
2.33
%
   
2.72
%
   
2.62
%
   
2.47
%
   
2.45
%
Investment gains and losses on sales and impairments, net (17)
 
$