Pinnacle Financial Partners in Nashville, Tenn., has agreed to buy a bigger stake in Bankers Healthcare Group in Southwest Ranches, Fla.
The $8.7 billion-asset Pinnacle will pay $114 million in cash and stock to boost its ownership from
BHG's executives also agreed to extend their stay with the company as part of the new deal. BHG, formed in 2001 to provide financing for health care professionals, has provided more than $2 billion in funding for personal and commercial loans, credit cards and insurance services.
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The $6 billion-asset Pinnacle said in a press release Wednesday that it paid $75 million for a 30% stake in Bankers Healthcare Group in Southwest Ranches, Fla.
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Pinnacle Financial recently bought a 30% stake in a firm that originates most of its loans to doctors online and then auctions them to community banks. The move promises higher fee income, but could also put Pinnacle at the forefront of banking's hottest trend.
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Pinnacle Financial Partners has struck its first deal in nearly eight years, and it has the capacity to do more as it seeks to double its assets in Tennessee. But CEO Terry Turner says it is more likely to grow organically because there aren't many banks left in the state that he would want to buy.
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"Our partnership with Pinnacle has better positioned us to continue our rapid growth and profitability," BHG Chief Executive Al Crawford said in a Wednesday press release. "We expect that this additional investment will open up new opportunities for both firms."
BHG's income contributed 26 cents to Pinnacle's fully diluted earnings per share last year. The added stake is expected "to further increase and diversify" Pinnacle's fee income, Pinnacle President and CEO Terry Turner said in the release.
Pinnacle also announced Wednesday that its fourth-quarter earnings rose 43% from a year earlier, to $26.9 million, or 65 cents a share.
