Profit rose 37% at Pinnacle Financial Partners (PNFP) in Nashville, Tenn., on the strength of its lending and fee income.
The $5.4 billion-asset company reported earnings of $14.3 million in the second quarter, up from $10.4 million a year earlier. Per-share earnings of 42 cents beat the expectations of analysts polled by Bloomberg by 3 cents.
Net interest income was $43.6 million, 8% higher than in the same period of 2012, despite a reduction in net interest margin of 13 basis points, to 3.77%. Its loan portfolio expanded by 5%, to $3.9 billion.
Noninterest income rose 14%, to $11.3 million, as fees on deposit accounts, investment services and insurance services all rose.
Pinnacle's provision for loan losses rose by more than $2 million, to $2.8 million, and net chargeoffs rose 45%, to $3.5 million.