Pinnacle Financial Partners in Nashville, Tenn., reported stronger quarterly results that reflected growth in old and new markets.

The $21 billion-asset company said in a press release late Tuesday that its second-quarter earnings rose by 40% from a year earlier to $43.1 million, or 80 cents a share. The results were skewed by Pinnacle’s June 16 purchase of BNC Bancorp in High Point, N.C.

Terry Turner, Pinnacle Financial Partners
Pinnacle Financial, led by CEO Terry Turner, made more loans in Tennessee as it worked to close its purchase of BNC in North Carolina.

Net interest income increased by 42% to $106.6 million. Excluding benefits tied to $6.1 million in deposits and $5.6 million in net loans from BNC, the increase would have been 26%. The net interest margin compressed by 4 basis points to 3.68%.

Pinnacle said it had about $668 million of organic loan growth during the second quarter.

Noninterest income rose by 7.3% to $35.1 million. The increase would have been 2.1% without a $1.7 million contribution from BNC.

The BNC acquisition increased expenses during the quarter. Noninterest expenses rose by 28% to $71.8 million, including $3.2 million in merger-related charges.

Pinnacle’s loan-loss provision increased by 28% to $6.8 million. Nonperforming assets made up just 0.31% of total assets on March 31.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.