One-time charges overshadow higher 4Q revenue at Pinnacle in Tenn.
Pinnacle Financial Partners in Nashville, Tenn., reports lower quarterly earnings as one-time charges overshadowed increased revenue.
The $22.2 billion-asset company said in a press release Tuesday that its fourth-quarter profit fell almost 26% from a year earlier, to $26.8 million.
Pinnacle recorded a $19.1 million pretax merger-related expense, a $8.3 million pretax loss tied to investment securities and a $31.5 million after-tax charge related to its deferred tax assets.
Revenue rose by more than 75%, to $211.2 million. Pinnacle’s numbers were aided by its June purchase of the $7.4 billion-asset BNC Bancorp in High Point, N.C.
"I am particularly excited about our continued growth prospects heading into 2018," Terry Turner, Pinnacle’s president and CEO, said in the release. "We have now completed the BNC brand and technology integrations and are well on our way to a common culture across our four-state footprint."
Pinnacle is planning to hire 64 financial advisers in the Carolinas and Virginia over the next five years to support operations it gained from buying BNC, Turner added.
Net interest income nearly doubled from a year earlier to $174.7 million. Total loans increased by 85%, $15.6 billion, after commercial real estate loans and residential mortgages more than doubled. The net interest margin expanded by 4 basis points, to 3.76%.
Noninterest income increased by more than 18%, to $36.5 million. Service charges on deposit accounts rose by roughly 58%, to $6.1 million, and gains on mortgage loans sold increased by about 34%, to $3.8 million.
Noninterest expense almost doubled from a year earlier to $123 million, though it included the merger-related costs.