Pinnacle Financial Partners (PNFP) in Nashville has repaid the remaining $71.6 million of the $95 million it received from the Treasury Department's Troubled Asset Relief Program in December 2008.
The $4.8 billion-asset company had already redeemed one-quarter of the preferred shares owned by the Treasury late last year and said Wednesday that it redeemed the rest this week using a combination of cash on hand and the proceeds of a recent debt offering. The repayment includes $346,000 of accrued dividends.
"We are pleased to finalize the redemption of the preferred stock the Company issued to the Treasury," M. Terry Turner, Pinnacle's president and chief executive officer, said in a news release. "Our goal for quite some time has been to accomplish the redemption without any further dilution to our common shareholders. We can now dedicate our resources to growing our franchise in two great banking markets, Nashville and Knoxville."
As a result of the repayment Pinnacle expects to take a one-time, noncash charge to earnings of $1.7 million this quarter. The company earned $7.2 million in the first quarter.