Pinnacle Financial Partners Reviews
This article explains all you need to know about Pinnacle Financial Partners.
About Pinnacle Financial Partners
Pinnacle Financial Services serves consumers and businesses in six Southeastern states. The firm exclusively recruits seasoned individuals who can consistently give exceptional service and sound guidance.
Pinnacle Financial Partners (PNFP -2.78%) continues to deliver good returns to shareholders. Pinnacle Financial Partners is a model of a bank:
Rising book values per share, loan volumes, deposits, and profitability measurements demonstrate the bank is a good value proposition, possibly better than Bank of America (BAC -2.80%) or Citigroup (C -1.76 percent ).
Pinnacle Financial Partners, a $1.4 billion Southeastern community bank based in Tennessee, is improving all key indicators. The community banks now has 33 bank locations in the state with total assets of $5.8 billion as of June 2014.
Pinnacle Financial Partners’ relative newness is probably its most distinctive feature.
Pinnacle Financial Partners was founded in 2000 by a group of businessmen intending to develop a locally owned community bank.
Despite its young age, Pinnacle Financial Partners is a genuine community banker with impressive recent outcomes.
Inflation-adjusted net interest
The relationship between loan growth and net interest income growth is clear.
The more loans a bank originates, the more interest it earns on the loan pool. Assuming the bank isn’t losing money on later charge-offs, Pinnacle Financial Partners has been a loan machine: Average loans climbed from $3.2 billion in 2011 to $4.1 billion in Q1 2014, representing a 9% annual compound growth rate.
The average outstanding loan amount rose 3% to $4.3 billion in the second quarter.
Pinnacle Financial Partners’ net interest income climbed from roughly $36 million in Q1 2011 to over $47 million in Q2 2014.
During the same year, Pinnacle Financial Partners grew its deposit base by 20%, from $3.8 billion to $4.5 billion.
Pinnacle Financial Partners has historically delivered double-digit returns on equity, demonstrating the superiority of the community bank business model over Wall Street’s earnings-chasing mentality.
However, community banks like Pinnacle Financial Partners do not engage in casino capitalism and take on ever increasing balance sheet risk.
Pinnacle Financial Partners had 12.81 percent returns on tangible common equity over the last six quarters.
Unlike large-cap institutions that rely on investment banking, Pinnacle Financial Partners focuses on its core business: deposits and loans.
This concentration has helped the community bank to progressively build its tangible book value to $14.53 per share, beating Citigroup’s 7% growth rate.
Pinnacle Financial Partners outperformed Bank of America and Citigroup over the last year due to strong operating results and no mortgage issue.
Pinnacle Financial Partners: Conclusion
Pinnacle Financial Partners is an innovative and well-run community bank alternative to the sector’s large-cap banks.
Pinnacle Financial Partners, despite its tiny size, casts a wide shadow due to its excellent success in loan, deposit, interest income, and book value development.
Thanks for taking the time to read this blog post on Pinnacle Financial Partners.