Despite a weakening economy, one of Tennessee’s biggest banks reported higher profits in the third quarter as it continued to boost its assets by hiring experienced bankers from other institutions.
Pinnacle Financial Partners, Inc., the Nashville-based parent company of Pinnacle Bank, on Tuesday reported net income of $1.91 per share in the quarter ended Sept. 30, 2022, up 9.1% from the same period a year ago. Net income was $5.42 per share for the first nine months of the year, up 7.3% from a year ago.
The profit gains came despite a plunge in net interest income from the Paycheck Protection Program, which dropped from $20.4 million in the third quarter of 2021 to only $755,000 in the most recent fiscal quarter.
“There is little doubt that we continue to operate in a weakening economy,” Pinnacle CEO M. Terry Turner said in an earnings announcement Tuesday.
Turner credited Pinnacle’s success to “our ability to attract the best bankers in our markets from our competitors.” Pinnacle said it has hired 118 bankers so far this year, including 53 in the third quarter.
“As a result, we believe we are extremely well positioned to seize the significant opportunities arising from the substantial market disruption we see occurring across our footprint and to continue producing sound growth in what is likely to be a more challenging economic landscape,” he said. “Our third quarter results increased our belief that our proven and unique business model should continue to produce outsized revenue growth, earnings growth and tangible book value accretion through a more challenging operating environment.”
Pinnacle, which is the third biggest bank in Tennessee, grew its total assets in the past year by 12.3% to $41 billion as of Sept. 30.
— Compiled by Dave Flessner