Pinnacle Financial Partners, Inc. · NYSE:PNFP
Pinnacle Financial Partners — Investor Presentation (June 2009)
31 slides from Pinnacle Financial Partners's investor presentation, Jun 2, 2009
Slide 1: Continued Growth for Tennessee's Premier Financial Services Franchise
Terry Turner, President and CEO Harold Carpenter, EVP and CFO June 2009 Continued Growth for Tennessee's Premier Financial Services Franchise 1
Slide 2: Forward-looking statements
Forward-looking statements Pinnacle Financial Partners, Inc. ("Pinnacle Financial") may from time to time make written or oral statements, including statements contained in this presentation which may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 19
Slide 3: Today's Agenda
PNFP - Pinnacle Financial Partners Company profile Asset quality Financial highlights Case for continued growth Today's Agenda 3
Slide 4: Company Profile
einnacle Company Profile
Slide 5: Pinnacle Profile
Source: Nasdaq, finance. yahoo.com Pinnacle Profile High growth, one-bank holding company Headquartered in Nashville, Tennessee 8+ years old Denovo operation in Knoxville - October 2007 Total assets at March 31, 2009 - $4.95 billion Market cap - $14.93 per share (5/22/09) = $359 million Institutiona
Slide 6: Pinnacle Profile
Pinnacle Profile Focus on businesses and affluent consumers Provide distinctive service and effective advice Hire and retain a large cadre of experienced advisors Offer a full line of financial services Four simple strategies 6
Slide 7: Asset Quality
einnacle Asset Quality
Slide 8: Second Quarter 2009
Second Quarter 2009 May 1st announced a $21.5 million charge off Equates to $0.53 FDEPS loss in 2Q Our only bank holding company loan Not forecasting any recoveries, although minor amount possible Believed to be an isolated occurrence 8
Slide 9: Asset quality expressed as a % of total loans within category
Asset quality expressed as a % of total loans within category PNFP 30-90 days past due 1Q09 Peer 30-90 days past due (*) PNFP NPLs and > 90 days 1Q09 Peer NPLs and > 90 days (*) Const. and land dev. 2.33% 2.92% 3.19% 9.54% CRE 0.03% 0.42% 0.46% 0.88% Total real estate 1.26% 1.76% 1.39% 3.86% C&I 0.4
Slide 10: Modified underwriting standards in 2009
Modified underwriting standards in 2009 Requires builders and developers to begin amortization of loan at renewal should project be "off initial plan" Vertical construction - 20 yr amortization Land - 10 yr amortization Resulted in acceleration of risk rating downgrades in 1Q09 for builder and devel
Slide 11: $33.9 MM nonaccruing loans
$33.9 MM nonaccruing loans 0.97% of loan balances Asset Quality Metrics As of March 31, 2009 Nonaccrual loans $33.9 ORE 19.8 Total NPA's $53.7 NPA's as a % of Total loans + ORE 1.54% 11
Slide 12: Non-accruing loans
Non-accruing loans Three largest NPLs #1 - $9.5 mm in loans to builder / developer #2 - Three development loans to same entity - $4.8 mm #3 - $4.5 mm to real estate investor Approximately $5.2 mm in reserves assigned to NPLs Asset Quality Metrics 12
Slide 13: ORE classifications
ORE classifications (dollars in thousands) Balances March 31, 2009 Fair value as a % of book value Average Appraisal Age in Months ORE classifications: New home construction $ 12,418 111% 6.2 Developed lots 4,689 131% 3.8 Undeveloped land 2,062 166% 2.5 Other 647 104% 4.4 Total ORE $ 19,817 121% 4.9
Slide 14: Net Charge-offs
Net Charge-off's Expressed as a % of Category PNFP Net Charge Off's 1Q09 Peer Net Charge Off's (*) Const. and land dev. 0.60% 2.83% CRE - 0.75% Total real estate 0.32% 1.18% C&I 1.04% 1.39% Total loans 0.56% 1.38% (*) Uniform Bank Performance Report - 3/09 Largest 1Q09 charge-offs: - $1.8mm real est
Slide 15: Financial Highlights
PANN ee Financial Highlights
Slide 16: Financial Highlights
Financial Highlights Net income and EPS 1Q09 net income available to common stockholders of $643,000 compared to $6.0 million in 1Q08 FDEPS of $0.03 in 1Q09 compared to $0.26 in 1Q08 Includes $1.45 million in TARP preferred stock charges Loan growth - Loans up $119 million in 1Q09. Pipelines remain
Slide 17: Strong capital base
Strong capital base March 31, 2009 December 31, 2008 Tangible common equity ratio 6.0% 6.1% Tier 1 leverage 9.7% 10.5% Tier 1 risk based capital 11.8% 12.1% Total risk based capital 13.3% 13.5% Tangible common book value per common share $11.75 $11.70 Financial Highlights 17
Slide 18: Diversified loan portfolio
Diversified loan portfolio PNFP avoided: Sub prime Indirect auto Credit card Student lending SBA loans only 0.2% of book Financial Highlights 18
Slide 19: Loan Categories
Financial Highlights Loan Categories Amounts 1Q09 %'s 1Q09 Amounts 4Q08 %'s 4Q08 C&D and Land $ 663.4 19.1% $ 645.4 19.2% Consumer RE 710.3 20.5% 675.6 20.1% CRE - Owner Occ. 408.1 11.7% 371.6 11.1% CRE - Investment 566.5 16.3% 554.9 16.6% Other RE loans 46.7 1.3% 50.4 1.5% Total real estate 2,395.0
Slide 20: Construction and Land Categories
Financial Highlights Construction and Land Categories Amts 1Q09 %'s(*) 1Q09 Amts 4Q08 %'s (*) 4Q08 Resid - Spec $ 93.7 2.7% $ 96.9 2.9% Resid - Custom 25.9 0.7% 29.0 0.9% Resid - Condo 55.4 1.6% 48.5 1.4% Comm Construct 86.3 2.5% 77.1 2.3% Land Devel - Resi 240.3 6.9% 243.2 7.2% Land Devel - Comm 12
Slide 21: Expectations for 2009
Expectations for 2009 Should see some margin improvement NPA's will weigh on margin Loan floors and CD pricing Provision to be impacted by increased charge offs Charge-off's for 2009 currently forecasted at 0.80% to 1.00% (exclusive of $21.5mm charge off announced on 5/1/09) We believe 2Q09 will be
Slide 22: The Case for Growth
einnacle The Case for Growth
Slide 23: Reliable Track Record for Growth
Reliable Track Record for Growth Loans Deposits 23
Slide 24: Reliable Track Record for Growth
Reliable Track Record for Growth Take market share (Nashville, Knoxville) ~$1B consolidation from existing sales force Increase branch offices and staff ~ 10% 2. Extend to new markets (Memphis) 24
Slide 25: Nashville Significant Growth Opportunity Persists
Source: FDIC 6/08 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 0.7051 0.6704 0.6482 0.6298 0.6179 0.5904 0.5816 0.5402 0.4886 0.4545 Top 3 banks in Nashville are Regions, SunTrust and Bank of America Aggregate Market Share Aggregate market share for the top 3 in Nashville MSA has declined almos
Slide 26: Knoxville Significant Growth Opportunity Persists
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 0.6662 0.6574 0.6395 0.6334 0.6191 0.6042 0.6121 0.6033 0.5937 0.5763 0.5671 0.5456 Aggregate Market Share Source: FDIC - 6/08 Top 3 banks in Knoxville are First Horizon, Regions and SunTrust Aggregate market share for the top 3 in Knoxvill
Slide 27: Original multi-year performance targets
Original multi-year performance targets (*) 2007 2008 2009 2010 2011 Associate hiring plan Target Actual 26 22 39 32 51 39 59 63 Facilities Target Actual 2 2 2 2 4 2 5 5 Loan growth targets (millions) Target Actual $ 100 $109 $ 225 $ 318 $ 375 $ 330 $ 490 $ 600 Deposit growth targets (millions) Targ
Slide 28: Significant Growth Opportunity Persists
Enter Tennessee's 3 metropolitan markets on a de novo basis ? 3. Memphis ? 1. Nashville ? 2. Knoxville Pinnacle has de novoed in Nashville and Knoxville Pinnacle's bias for market extensions continues to be de novo versus acquisition Criteria for market extensions include: Only launch when PNFP can
Slide 29: 2009 Expectations
2009 Expectations Loans - Assume continued weakness in 2009 Client selection has been good Credit quality deterioration likely in 1H09 Land acquisition and construction book receiving significant attention NCO's and NPL's higher than historical performance Capital - Appears sufficient Continued moni
Slide 30: Final Thoughts
Final Thoughts Reliable track record for growth Healthy balance sheet compared to peers Securities portfolio Relatively strong loan portfolio Strong capital base Healthy markets compared to national trends Growth opportunity persists 30
Slide 31: Continued Growth for Tennessee's Premier Financial Services Franchise
Terry Turner, President and CEO Harold Carpenter, EVP and CFO June 2009 Continued Growth for Tennessee's Premier Financial Services Franchise 31
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