Pinnacle Financial Partners Inc. (PNFP, Financial) filed Quarterly Report for the period ended 2010-06-30.
Pinnacle Financial Partners Inc. has a market cap of $407.3 million; its shares were traded at around $12.21 with and P/S ratio of 1.7.
Our provision for loan losses of $30.5 million for the second quarter of 2010 compared to $65.3 million for the same period in 2009. The provision for loan losses was $43.7 million for the six months ended June 30, 2010 compared to $78.9 million for the same period in 2009. During the second quarter of 2010, we incurred net charge-offs of $33.5 million compared to $44.6 million in the second quarter of 2009 and $15.1 million in the first quarter of 2010. As a result, during the first six months of 2010, our allowance for loan losses as a percentage of total loans increased from 2.58% at December 31, 2009 to 2.61% at June 30, 2010.
Noninterest income for the three and six months ended June 30, 2010 compared to the same period in 2009 decreased by $33,000, or 0.31%, and $4.7 million, or 19.73%, primarily due to substantially higher gains on the sale of investment securities in the first six months of 2009, as compared to the same period in the current year. Excluding net gains on the sale of investment securities, Pinnacles noninterest income for the three and six months ended June 30, 2010 compared to the same period in 2009 decreased by 2.08% and 4.89%, respectively. This decrease is largely attributable to a reduction in gains on loan sales resulting from fewer fees collected on mortgage loan originations occurring in the first six months of 2010 compared to 2009. During the six months ended June 30, 2010, mortgage originations were $164.3 million compared to $409.3 million for the same period in 2009. Additionally, we recorded fewer fee revenues on service charges from deposit accounts and insurance sales commissions in the three and six month ended June 30, 2010 compared to the same periods in 2009.
Net loss available to common stockholders for the second quarter of 2010 was $27.9 million compared to net loss available to common stockholders of $33.2 million for the same period in 2009. Net loss for the first six months of 2010 was $33.2 million compared to net loss available to common stockholders of $32.6 million for the same period in 2009. Included in net loss available to common stockholders for the three and six months ended June 30, 2010 and 2009 was approximately $1.50 million and $3.05 million, respectively, and $1.47 million and $2.92 million, respectively, of charges related to preferred stock dividends and accretion of the preferred stock discount related to our participation in the CPP.
Financial Condition. Loans decreased $229.5 million during the first six months of 2010. We have grown our total deposits to $3.853 billion at June 30, 2010 compared to $3.824 billion at December 31, 2009, an increase of $29.8 million. In comparing the composition of the average balances of our deposits between the second quarter of 2010 with the second quarter of 2009, we have experienced greater growth in our lower cost core deposit balances, defined as all client deposits except time deposits greater than $100,000, than in any other category. This decrease in reliance on higher cost non-core deposits, including brokered deposits, has contributed to the increased net interest margin between the two periods.
Net Interest Income. Net interest income represents the amount by which interest earned on various earning assets exceeds interest paid on deposits and other interest bearing liabilities and is one of the most significant components of our results of operations. For the three months ended June 30, 2010 and 2009, we recorded net interest income of $35.7 million and $30.5 million respectively, which resulted in a net interest margin of 3.23% and 2.75%. For the six months ended June 30, 2010 and 2009, we recorded net interest income of $72.3 million and $59.2 million, respectively, which resulted in a net interest margin of 3.24% and 2.74%.
Read the The complete Report
Pinnacle Financial Partners Inc. has a market cap of $407.3 million; its shares were traded at around $12.21 with and P/S ratio of 1.7.
Highlight of Business Operations:
General. The adverse economy in our principal markets continues to materially impacted our financial condition and results of operations in 2010. Our fully diluted net loss per common share available to common stockholders for the three months ended June 30, 2010 was $0.85, compared to fully diluted net loss per common share available to common stockholders of $1.33 for the same period in 2009. Our results of operations for the three and six months ended June 30, 2010 were negatively impacted by a $17.4 million non-cash charge to record a valuation for deferred tax assets. Our fully diluted net loss per common share available to common stockholders for the six months ended June 30, 2010 was $1.02, compared to fully diluted net loss per common share available to common stockholders of $1.34 for the same period in 2009. At June 30, 2010, loans totaled $3.333 billion, as compared to $3.563 billion at December 31, 2009, while total deposits increased to $3.853 billion at June 30, 2010 from $3.824 billion at December 31, 2009.Our provision for loan losses of $30.5 million for the second quarter of 2010 compared to $65.3 million for the same period in 2009. The provision for loan losses was $43.7 million for the six months ended June 30, 2010 compared to $78.9 million for the same period in 2009. During the second quarter of 2010, we incurred net charge-offs of $33.5 million compared to $44.6 million in the second quarter of 2009 and $15.1 million in the first quarter of 2010. As a result, during the first six months of 2010, our allowance for loan losses as a percentage of total loans increased from 2.58% at December 31, 2009 to 2.61% at June 30, 2010.
Noninterest income for the three and six months ended June 30, 2010 compared to the same period in 2009 decreased by $33,000, or 0.31%, and $4.7 million, or 19.73%, primarily due to substantially higher gains on the sale of investment securities in the first six months of 2009, as compared to the same period in the current year. Excluding net gains on the sale of investment securities, Pinnacles noninterest income for the three and six months ended June 30, 2010 compared to the same period in 2009 decreased by 2.08% and 4.89%, respectively. This decrease is largely attributable to a reduction in gains on loan sales resulting from fewer fees collected on mortgage loan originations occurring in the first six months of 2010 compared to 2009. During the six months ended June 30, 2010, mortgage originations were $164.3 million compared to $409.3 million for the same period in 2009. Additionally, we recorded fewer fee revenues on service charges from deposit accounts and insurance sales commissions in the three and six month ended June 30, 2010 compared to the same periods in 2009.
Net loss available to common stockholders for the second quarter of 2010 was $27.9 million compared to net loss available to common stockholders of $33.2 million for the same period in 2009. Net loss for the first six months of 2010 was $33.2 million compared to net loss available to common stockholders of $32.6 million for the same period in 2009. Included in net loss available to common stockholders for the three and six months ended June 30, 2010 and 2009 was approximately $1.50 million and $3.05 million, respectively, and $1.47 million and $2.92 million, respectively, of charges related to preferred stock dividends and accretion of the preferred stock discount related to our participation in the CPP.
Financial Condition. Loans decreased $229.5 million during the first six months of 2010. We have grown our total deposits to $3.853 billion at June 30, 2010 compared to $3.824 billion at December 31, 2009, an increase of $29.8 million. In comparing the composition of the average balances of our deposits between the second quarter of 2010 with the second quarter of 2009, we have experienced greater growth in our lower cost core deposit balances, defined as all client deposits except time deposits greater than $100,000, than in any other category. This decrease in reliance on higher cost non-core deposits, including brokered deposits, has contributed to the increased net interest margin between the two periods.
Net Interest Income. Net interest income represents the amount by which interest earned on various earning assets exceeds interest paid on deposits and other interest bearing liabilities and is one of the most significant components of our results of operations. For the three months ended June 30, 2010 and 2009, we recorded net interest income of $35.7 million and $30.5 million respectively, which resulted in a net interest margin of 3.23% and 2.75%. For the six months ended June 30, 2010 and 2009, we recorded net interest income of $72.3 million and $59.2 million, respectively, which resulted in a net interest margin of 3.24% and 2.74%.
Read the The complete Report
