Pinnacle Bank reports higher annual income
Pinnacle Financial Partners, the Nashville-based bank that acquired CapitalMark in Chattanooga last year, boosted its fourth quarter net income by 20 percent over a year ago to 83 cents per share, or 3 cents per share better than analysts forecasts.
The company posted revenue Tuesday of $120.2 million for the fourth quarter, compared to analysts' expectations of $122.05 million.
"Looking forward, we are optimistic about 2017, believing that our current momentum in the very strong urban markets of Tennessee puts us in a position to continue the out-sized growth in revenue and earnings per share," Pinnacle CEO Terry Turner said.
UnitedHealth makes more outside of health insurance
The nation's biggest health insurer made most of its money in the fourth quarter by selling things other than health insurance.
UnitedHealth Group's Optum division, which manages prescription drug plans, runs doctor practices and analyzes health care data, generated slightly more of a profit than the company's traditional business of selling insurance.
Health insurance still brought in most of UnitedHealth's revenue. But analysts who follow the company see more growth potential in Optum and its array of products focused on cutting costs and improving health care.
"The market opportunity that they are addressing is the entire health care economy," said Sheryl Skolnick, an analyst for Mizuho Securities USA.
Optum services also include software that helps manage revenue and patient care, and it has started expanding into foreign markets such as the United Kingdom. UnitedHealth spent about $12 billion several years ago to bolster Optum's pharmacy benefits management business, just as demand started increasing for ways to control soaring prescription drug costs.
Optum also employs or contracts with more than 20,000 doctors and runs primary and urgent care centers. Earlier this month, it said it would add a few thousand more physicians by spending $2.3 billion to buy Surgical Care Affiliates, which runs surgery centers.
Synovus earnings up, ahead of projections
Synovus Financial Corp., the parent company of Cohutta Banking Co. in Chattanooga, boosted its net income last year by nearly 17 percent to $236.5 million, or $1.89 per share.
The Columbus, Ga.-based banking firm said loan volume was up 7.2 percent last year while deposits grew 5.9 percent. Non-performing loans declined by 8.9 percent last year.
In the fourth quarter report released Tuesday, Synovus said its bottom line climbed to $65.96 million, or 54 cents per share, up from $57.5 million, or 44 cents per share, in last year's fourth quarter. Analysts had expected the company to earn 53 cents per share, according figures compiled by Thomson Reuters.
"We are energized about the opportunities in 2017 and beyond as we focus on exceptional and efficient service delivery, understanding and meeting customer needs, further balance sheet diversification, disciplined expense management, and investing in our communities," Synovus CEO Kessel D. Stelling said.
CSX profit declines 2 percent in quarter
CSX Corp.'s fourth-quarter profit declined 2 percent as the railroad worked to limit its costs while shipping demand remained weak.
The Jacksonville, Fla.-based railroad said Tuesday it generated $458 million in net income, or 49 cents per share, in the fourth quarter. That's down from $466 million net income, or 48 cents per share, a year earlier.
Analysts surveyed by FactSet expected CSX to report earnings per share of 50 cents.
The railroad reported $3.04 billion in revenue, up from $2.78 billion a year earlier.
CSX Chairman and CEO Michael Ward said on CNBC that the economy showed some signs of improvement in the fourth quarter and manufacturing activity increased.
"It looks like some positive momentum going into 2017," Ward said on CNBC.