Pinnacle Financial Partners, Inc. (PNFP), the holding company of Pinnacle National Bank, Tuesday reported a loss for the fourth quarter, compared to a profit last year, reflecting higher provision and non-interest expenses related mainly to the losses on the sale of real estate properties, which more than offset the rise in net interest and non-interest income.
The Nashville, Tennessee-based company's net loss available to shareholders for the fourth quarter was $3.98 million or $0.12 per share, compared to net income of $7.74 million or $0.31 per share in the previous year.
On average, 13 analysts polled by Thomson Reuters expected the company to report loss of $0.04 per share for the quarter. Analysts' estimates typically exclude special items.
Net interest income for the quarter increased to $37.03 million from $29.89 million a year ago. Net interest margin for the fourth quarter of 2009 was 3.19%, compared to a net interest margin of 2.96% for the same period last year. Provision for loan losses increased to $15.69 million from $3.71 million last year.
Total non-interest income rose 1.70% to $8.18 million from $8.04 million a year ago. Total non-interest expense increased to $35.45 million from $22.58 million in the previous year.
Revenue, as the sum of net interest income and noninterest income, grew 19.2% to $45.21 million from $37.93 million in the fourth quarter of 2008. Analysts expected revenues of $45.02 million for the quarter.
Non-interest expense includes $8.4 million in other real estate expenses, of which $5.4 million was attributable to losses on the sale of other real estate properties.
Compensation expense was $15.04 million during the fourth quarter of 2009, compared to $10.01 million during the fourth quarter of 2008.
Terry Turner, Pinnacle's president and chief executive officer, said, "Our fourth quarter results reflect increased provisioning due primarily to the impact that this economic cycle continues to have on the local real estate markets and the influence it has on our borrowers."
"Excluding the impact of $8.4 million in other real estate expenses and as further evidence of our efforts to increase the operating leverage our firm, our noninterest expense increased by $1.02 million between the third and fourth quarters of 2009, compared to a $2.92 million increase in total revenue for the same time period," Turner added.
Total deposits at December 31, 2009, were $3.82 billion, up $290 million from $3.53 billion at December 31, 2008, representing an annual growth rate of 8.2%. Loans at December 31, 2009, were $3.56 billion, up $208 million from $3.35 billion at December 31, 2008, representing an annual growth rate of 6.2%.
For the fiscal 2009, net loss available to shareholders was $41.43 million or $1.46 per share, compared to an income of $30.56 million or $1.27 per share last year. Net interest income for the year increased to $130.79 million from $114.21 million a year ago. Non-interest income increased to $39.65 million from $34.72 million in the previous year.
Analysts expected loss of $1.45 per share on revenues of $165.36 million for the fiscal 2009.
PNFP closed Tuesday's regular trading at $14.53, up 0.32 or 2.25%, on a volume of 0.34 million shares on the Nasdaq. In after hours, the stock went down 0.32 or 2.20%, trading at $14.21.
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