Pinnacle Financial Partners Inc. (PNFP, Financial) filed Quarterly Report for the period ended 2010-03-31.
Pinnacle Financial Partners Inc. has a market cap of $452.95 million; its shares were traded at around $13.6 with and P/S ratio of 1.85.
Our provision for loan losses of $13.2 million for the first quarter of 2010 remained essentially unchanged from the $13.6 million provision for the same period in 2009. During the first quarter of 2010, we incurred net charge-offs of $15.1 million compared to $4.8 million in the first quarter of 2009. As a result, during the first three months of 2010, our allowance for loan losses as a percentage of total loans increased from 2.58% at December 31, 2009 to 2.59% at March 31, 2010.
Noninterest income for the three months ended March 31, 2010 compared to the same period in 2009 decreased by $4.6 million, or 35.4% primarily due to substantially higher gains on the sale of investment securities in the 2009 first quarter, as a result of the repositioning of the investment portfolio acquired in the Mid-America acquisition. Excluding net gains on the sale of investment securities of $364,550 and $4.3 million, respectively, Pinnacles noninterest income for the three months ended March 31, 2010 compared to the same period in 2009 decreased by 7.6%. This decrease is largely attributable to a reduction in gains on loan sales resulting from less fees collected on mortgage loan originations occurring in the first quarter of 2010 compared to 2009. During the three months ended March 31, 2010, mortgage originations were $70.8 million compared to $191.1 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 first quarter of 2010 compared to the first quarter of 2009.
Net loss available to common stockholders for the first quarter of 2010 was $5.4 million compared to net income available to common stockholders of $0.6 million for the same period in 2009. Included in net loss available to common stockholders for the three months ended March 31, 2010 and 2009 was approximately $1.5 million and $1.4 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 $83.8 million during the first three months of 2010. We have grown our total deposits to $3.836 billion at March 31, 2010 compared to $3.824 billion at December 31, 2009, an increase of $12.8 million. In comparing the composition of the average balances of our deposits between the first quarter of 2010 with the first quarter of 2009, we have experienced increased growth in our lower cost core deposit balances, defined as all 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 March 31, 2010 and 2009, we recorded net interest income of $36.6 million and $28.7 million respectively, which resulted in a net interest margin of 3.25% and 2.72%.
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Pinnacle Financial Partners Inc. has a market cap of $452.95 million; its shares were traded at around $13.6 with and P/S ratio of 1.85.
Highlight of Business Operations:
General. The adverse economy in our principal markets, particularly the residential real estate market, materially impacted our financial condition and results of operations in 2010 as compared to 2009. Our fully diluted net loss per common share available to common stockholders for the three months ended March 31, 2010 was $0.16, compared to fully diluted net income per common share available to common stockholders of $0.03 for the same period in 2009. At March 31, 2010, loans totaled $3.800 billion, as compared to $3.563 billion at December 31, 2009, while total deposits increased to $3.836 billion at March 31, 2010 from $3.824 billion at December 31, 2009.Our provision for loan losses of $13.2 million for the first quarter of 2010 remained essentially unchanged from the $13.6 million provision for the same period in 2009. During the first quarter of 2010, we incurred net charge-offs of $15.1 million compared to $4.8 million in the first quarter of 2009. As a result, during the first three months of 2010, our allowance for loan losses as a percentage of total loans increased from 2.58% at December 31, 2009 to 2.59% at March 31, 2010.
Noninterest income for the three months ended March 31, 2010 compared to the same period in 2009 decreased by $4.6 million, or 35.4% primarily due to substantially higher gains on the sale of investment securities in the 2009 first quarter, as a result of the repositioning of the investment portfolio acquired in the Mid-America acquisition. Excluding net gains on the sale of investment securities of $364,550 and $4.3 million, respectively, Pinnacles noninterest income for the three months ended March 31, 2010 compared to the same period in 2009 decreased by 7.6%. This decrease is largely attributable to a reduction in gains on loan sales resulting from less fees collected on mortgage loan originations occurring in the first quarter of 2010 compared to 2009. During the three months ended March 31, 2010, mortgage originations were $70.8 million compared to $191.1 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 first quarter of 2010 compared to the first quarter of 2009.
Net loss available to common stockholders for the first quarter of 2010 was $5.4 million compared to net income available to common stockholders of $0.6 million for the same period in 2009. Included in net loss available to common stockholders for the three months ended March 31, 2010 and 2009 was approximately $1.5 million and $1.4 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 $83.8 million during the first three months of 2010. We have grown our total deposits to $3.836 billion at March 31, 2010 compared to $3.824 billion at December 31, 2009, an increase of $12.8 million. In comparing the composition of the average balances of our deposits between the first quarter of 2010 with the first quarter of 2009, we have experienced increased growth in our lower cost core deposit balances, defined as all 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 March 31, 2010 and 2009, we recorded net interest income of $36.6 million and $28.7 million respectively, which resulted in a net interest margin of 3.25% and 2.72%.
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