Pinnacle in Tenn. raises its profitability target
Pinnacle Financial Partners in Nashville, Tenn., has raised expectations after surpassing its prior profitability target.
The $22.9 billion-asset company said in a press release Monday that its first-quarter earnings more than doubled from a year earlier, to $83.5 million. The results included the company's $1.9 billion acquisition of BNC Bancorp, which closed in June.
Pinnacle said in 2012 that it would generate a return on average assets of 1.1% to 1.3%; it has since increased that goal at least twice.
The company's latest upward revision, setting a target of 1.5% to 1.7%, is partially tied to tax reform, President and CEO Terry Turner said in the release. Pinnacle’s return on average assets in the first quarter was 1.53%.
Revenue increased 83% from a year earlier, to $218.7 million.
Net interest income nearly doubled from a year earlier, though it was relatively flat from the fourth quarter.
Loans were almost double what they were a year earlier, at $16.3 billion. Though loans were only up 4% from the end of 2017, commercial loans jumpted 8%, to $4.5 billion.
Noninterest income increased 21% from the fourth quarter and 45% from a year earlier, to $44.2 million, largely because of gains in investment services, insurance sales and trust operations.
Noninterest expense climbed roughly 75% from a year earlier, to $108.6 million, due to an increase in salaries and benefits and equipment and occupancy costs.