Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) today
announced that its board of directors has authorized the repurchase
of up to $100 million of the Company’s common stock.
“Though we are announcing this repurchase program and will be
opportunistic in its implementation, we remain committed to our
strategy of aggressively hiring experienced bankers throughout our
markets and growing our earning assets, particularly within our
C&I lending operations in the Carolinas and Virginia,” said M.
Terry Turner, Pinnacle’s president and chief executive officer. “We
believe in the effectiveness of our business model and that our
strategy should lead to outsized growth in tangible book value and
earnings. Consequently, we have long held a bias against a
repurchase program. However, given the current market dynamics,
this provides us an effective tool as we continue to focus on
delivering value for our shareholders.”
Repurchases of the Company’s common stock will be made in
accordance with applicable laws and may be made at management’s
discretion from time to time in the open market, through privately
negotiated transactions or otherwise. The board authorized the
repurchase program to remain in effect through Dec. 31, 2019,
unless the entire repurchase amount has been acquired before that
date. The Company intends to fund the program with a combination of
cash on hand, cash generated from operations and borrowings under
the Company’s $75 million line of credit, under which there were no
borrowings as of Sept. 30, 2018.
The share repurchase program may be extended, modified, amended,
suspended or discontinued at any time at the Company’s discretion
and does not commit the Company to repurchase shares of its common
stock. The actual timing, number and value of the shares to be
purchased under the program will be determined by the Company at
its discretion and will depend on a number of factors, including
the performance of the Company’s stock price, the Company’s ongoing
capital planning considerations, general market and other
conditions, applicable legal requirements and compliance with the
terms of the Company’s outstanding indebtedness.
Pinnacle Financial Partners provides a full range of banking,
investment, trust, mortgage and insurance products and services
designed for businesses and their owners and individuals interested
in a comprehensive relationship with their financial institution.
The firm is the No. 1 bank in the Nashville-Murfreesboro-Franklin
MSA, according to 2018 deposit data from the FDIC. Pinnacle earned
a place on FORTUNE’s 2017 and 2018 lists of the 100 Best Companies
to Work For in the U.S., and American Banker recognized Pinnacle as
one of America’s Best Banks to Work For six years in a row.
The firm began operations in a single location in downtown
Nashville, TN in October 2000 and has since grown to approximately
$24.6 billion in assets as of Sept. 30, 2018. As the second-largest
bank holding company headquartered in Tennessee, Pinnacle operates
in 11 primarily urban markets in Tennessee, the Carolinas and
Virginia.
Additional information concerning Pinnacle, which is included in
the Nasdaq Financial-100 Index, can be accessed at
www.pnfp.com.
Forward-Looking Statements
All statements, other than statements of historical fact,
included in this release, are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. The words “expect,” “aim,”
“anticipate,” “intend,” “may,” “should,” “plan,” “believe,” “seek,”
“estimate” and similar expressions are intended to identify such
forward-looking statements, but other statements not based on
historical information may also be considered forward-looking
statements. These forward-looking statements are subject to known
and unknown risks, uncertainties and other factors that could cause
the actual results to differ materially from the statements,
including, but not limited to: (i) deterioration in the financial
condition of borrowers resulting in significant increases in loan
losses and provisions for those losses; (ii) the ability to grow
and retain low-cost core deposits and retain large, uninsured
deposits; (iii) the inability of Pinnacle Financial, or entities in
which it has significant investments, like Bankers Healthcare
Group, LLC (BHG), to maintain the historical growth rate of its, or
such entities’, loan portfolio; (iv) changes in loan underwriting,
credit review or loss reserve policies associated with economic
conditions, examination conclusions, or regulatory developments;
(v) effectiveness of Pinnacle Financial’s asset management
activities in improving, resolving or liquidating lower-quality
assets; (vi) the impact of competition with other financial
institutions, including pricing pressures (including those
resulting from the Tax Cuts and Jobs Act) and the resulting impact
on Pinnacle Financial’s results, including as a result of
compression to net interest margin; (vii) greater than anticipated
adverse conditions in the national or local economies including in
Pinnacle Financial’s markets throughout Tennessee, North Carolina,
South Carolina and Virginia, particularly in commercial and
residential real estate markets; (viii) fluctuations or
unanticipated changes in interest rates on loans or deposits or
that affect the yield curve; (ix) the results of regulatory
examinations; (x) a merger or acquisition; (xi) risks of expansion
into new geographic or product markets; (xii) any matter that would
cause Pinnacle Financial to conclude that there was impairment of
any asset, including goodwill or intangible assets; (xiii) reduced
ability to attract additional financial advisors (or failure of
such advisors to cause their clients to switch to Pinnacle Bank as
quickly as anticipated or at all), to retain financial advisors
(including as a result of the competitive environment resulting
from the Tax Cuts and Jobs Act) or otherwise to attract customers
from other financial institutions; (xiv) further deterioration in
the valuation of other real estate owned and increased expenses
associated therewith; (xv) inability to comply with regulatory
capital requirements, including those resulting from changes to
capital calculation methodologies, required capital maintenance
levels or regulatory requests or directives, particularly if
Pinnacle Financial’s level of applicable commercial real estate
loans exceed percentage levels of total capital in guidelines
recommended by its regulators; (xvi) risks associated with
litigation, including the applicability of insurance coverage;
(xvii) approval of the declaration of any dividend by Pinnacle
Financial’s board of directors; (xviii) the vulnerability of
Pinnacle Bank’s network and online banking portals, and the systems
of parties with whom Pinnacle Financial contracts, to unauthorized
access, computer viruses, phishing schemes, spam attacks, human
error, natural disasters, power loss and other security breaches;
(xix) the possibility of increased compliance costs or other
operational expenses as a result of increased regulatory oversight,
including oversight of companies in which Pinnacle Financial or
Pinnacle Bank have significant investments, like BHG, and the
development of additional banking products for Pinnacle Bank’s
corporate and consumer clients; (xx) the risks associated with
Pinnacle Financial and Pinnacle Bank being a minority investor in
BHG, including the risk that the owners of a majority of the equity
interests in BHG decide to sell the company if not prohibited from
doing so by Pinnacle Financial or Pinnacle Bank; (xxi) changes in
state and federal legislation, regulations or policies applicable
to banks and other financial service providers, like BHG, including
regulatory or legislative developments; (xxii) the availability and
access to capital; (xxiii) adverse results (including costs, fines,
reputational harm, inability to obtain necessary approvals and/or
other negative effects) from current or future litigation,
regulatory examinations or other legal and/or regulatory actions;
and (xxiv) general competitive, economic, political and market
conditions. Additional factors which could affect the forward
looking statements can be found in Pinnacle Financial’s Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current
Reports on Form 8-K filed with the SEC and available on the SEC’s
website at http://www.sec.gov. Pinnacle Financial disclaims any
obligation to update or revise any forward-looking statements
contained in this press release, which speak only as of the date
hereof, whether as a result of new information, future events or
otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181113006218/en/
Media Contact:Joe Bass, 615-743-8219
Financial Contact:Harold Carpenter, 615-744-3742
Website:www.pnfp.com
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