Pinnacle Financial Partners, Inc. · NYSE:PNFP
Pinnacle Financial Partners — Q3 2009 Earnings Presentation
18 slides from Pinnacle Financial Partners's earnings presentation, Oct 21, 2009
Slide 1: Third Quarter 2009 Investor Call
Pinnacle Financial Partners, Inc. Third Quarter 2009 Investor Call Terry T Turner, T President P id t and d CEO Harold Carpenter, EVP and CFO October 21, 2009 Safe Harbor Statements Forward--looking statements Forward Pinnacle Financial Partners, Inc. (“Pinnacle Financial”) may from time to time mak
Slide 2: Third Quarter Results
Third Quarter Results • Net income and EPS • 3Q09 net loss available to common stockholders of $4.9 million compared to net income of $8.8 million in 3Q08 • FDEPS of ($0.15) in 3Q09 compared to $0.36 in 3Q08. Includes $1.5 million in TARP preferred stock charges. Opening Comments Two Important Theme
Slide 3: Opening Comments: Two Important Themes
Opening Comments Two Important Themes • Aggressively dealing with credit issues • NCO’s of 0.58% • Increased NPAs to total loans of 3.98% • Increased ALLL to total loans of 2.30% • Approximately $38 million in NPA resolutions • Construction book down $61mm since year end Opening Comments Two Importa
Slide 4: Loan Categories and Construction and Land Categories
Loan Categories Comparison of 3Q09 to year end 2008 * Continued reduction in C&D exposure Amts. %’s Amts. %’s 3Q09 3Q09 4Q08 4Q08 C&D and Land $ 583.9 16.2% $ 645.4 19.2% Consumer RE 754.4 20.9% 675.6 20.1% CRE – Owner Occ. 556.0 15.4% 371.6 11.1% CRE – Investment 535.0 14.8% 554.9 16.6% Other RE lo
Slide 5: Commercial Real Estate and Asset Quality Metrics
Commercial Real Estate Commercial Real Estate Categories at Sept. 30, 2009 PNFP CRE Portfolio Nashville CRE Vacancy Rates for 2Q09 (*) Other 13.7% Warehouse 8.2% Warehse 9.5% Multifamily 10.6% Own/Occ 48.9% 48 9% Office Retail 7.2% 11.1% Office 14.3% Retail 16.8% (*) Colliers International Market Re
Slide 6: Asset Quality Metrics
Asset Quality Metrics $121.7 MM nonaccruing $ g loans Other 0.7% • 3.37% of loan balances Nonaccrual loans $121.7 ORE 22.8 Resid Const 29.5% Total NPA’s $144.5 Land Develop 41.8% NPA’s NPA’ as a % off Total loans + ORE 3.98% C&I 3.4% CRE 14.2% 1-4 Family 10.4% As of September 30, 2009 Asset Quality
Slide 7: Asset Quality Metrics: ORE and Net Charge-offs
Asset Quality Metrics ORE Classifications (dollars in thousands) Average Fair value as Appraisal Balances a % of book Age in Sept. 30, 2009 value Months ORE classifications: New home construct. $ 8,174 116% 5.79 Developed lots 3,329 203% 7.28 Undeveloped land 7,707 138% 6.40 Other 3,558 115% 3.35 To
Slide 8: Balance Sheet Strength and Funding Sources
Balance Sheet Strength Strong capital base Sept. 30, June 30, March 31, Dec. 31, 2009 2009 2009 2008 Tangible common equity 7.5% 7.4% 6.0% 6.1% Tangible common to risk weighted assets 9.1% 9.0% 7.4% 7.5% Tier 1 leverage 10.9% 11.1% 9.7% 10.5% Tier 1 risk based capital 13.1% 13.3% 11.8% 12.1% Total r
Slide 9: Net Interest Income
Net Interest Income September March December September 2009 June 2009 2009 2008 2008 Loan income $41,666 $39,627 $38,526 $43,433 $44,075 Loan yields 4.61% 4.52% 4.57% 5.27% 5.60% Investment income $8,608 $9,967 $10,563 $9,366 $7,345 Investment yields 4.56% 4.60% 5.18% 5.40% 5.24% T t l IB deposit To
Slide 10: Net Interest Income: Loan and CD Repricing
Net Interest Income • Loan repricing opportunities - $457 million of loans maturing and repricing in next six months. Goal at renewall should h ld be b > 5.00% 5 00% rate. t Loans ‐ $ Loans – Avg Yield (%) October 2009 $99.9 3.91% November 2009 $78.5 4.30% December 2009 $93.5 4.09% January 2010 $48.
Slide 11: Provision Expense and Pre-tax, Pre-provision Income
Provision expense September March December September 2009 June 2009 2009 2008 2008 Components of provision: Net loan growth $ 1,465 $ 1,321 $ 1,548 $1,642 $1,860 Net charge offs 5,228 44,579 4,760 2,068 73 Other (*) 15,440 19,420 7,302 - 1,192 Total provision expense $22,133 $65,320 $13,610 $3,710 $
Slide 12: Significant Growth Opportunity Persists
Significant Growth Opportunity Persists Loans $4,000 $3,500 $3,000 Deposits $4,500 $2,500 $4,000 $2,000 $3,500 $1,500 $3,000 $1 000 $1,000 $2,500 $500 $2,000 $0 $1,500 1‐01 2‐01 3‐01 4‐01 1‐02 2‐02 3‐02 4‐02 1‐03 2‐03 3‐03 4‐03 1‐04 2‐04 3‐04 4‐04 1‐05 2‐05 3‐05 4‐05 1‐06 2‐06 3‐06 4‐06 1/07 2/07 3/
Slide 13: Extremely Attractive Competitive Landscapes: Nashville
Extremely Attractive Competitive Landscapes Nashville R k Rank I tit ti N Institution Name St t State N off No. D Deposits it M k t Market M k t Market (Hqtrd) Offices 6/30/2009 Share Share 6/30/2009 6/30/2008 1 REGIONS BANK AL 74 6,085,769 17.61% 18.72% 2 BANK OF AMERICA NA NC 39 4,923,557 14.24% 1
Slide 14: Extremely Attractive Competitive Landscapes: Knoxville
Extremely Attractive Competitive Landscapes Knoxville Rank Institution Name State No of No. Deposits Market Market (Hqtrd) Offices 6/30/2009 Share Share 6/30/2009 6/30/2008 1 FIRST TENNESSEE BANK NA TN 33 2,318,096 19.29% 19.66% 2 SUNTRUST BANK GA 35 2,090,839 17.40% 17.99% 3 REGIONS BANK AL 36 2,02
Slide 15: Q&A / Supplemental Information
Q&A Third Quarter 2009 Investor Call Terry Turner Turner, President and CEO Harold Carpenter, EVP and CFO Supplemental pp Information Third Quarter 2009 Investor Call Terry Turner Turner, President and CEO Harold Carpenter, EVP and CFO 15
Slide 16: Bond Portfolio and Net Interest Income
Balance Sheet Strength Corporates 1.1% Conservative bond portfolio Municipals 20.2% Average yield on bond portfolio = 4.95% Average life = 4.0 years Agency Notes 25.2% MBS pass thrus 52.2% Agency CMOs 1.3% As of September 30, 2009 FNMA, FHLMC and GNMA Net Interest Income • Improving margin trends du
Slide 17: Fee Income
Fee income September March December September 2009 June 2009 2009 2008 2008 Service charges $2,559 $2,568 $2,477 $2,699 $2,778 Investment services 1,112 1,078 854 1,164 1,271 Insurance commissions 906 919 1,305 908 959 Gains on loan sales 900 1,633 1,288 1,048 1,460 Trust fees 586 642 658 557 585 Ot
Slide 18: Expenses
Expenses September December September 2009 June 2009 March 2009 2008 2008 Salaries and benefits $14,245 $13,747 $13,679 $12,058 $12,103 Incentive Expense - (1,072) 1,072 (2,043) 958 Equipment and occupancy 4,446 4,310 4,235 3,935 4,235 Other real estate owned 1,250 3,914 701 1,118 95 Marketing and B
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