Pinnacle Financial Partners, the parent company of Chattanooga's third biggest bank, reported an 11.5% drop in third quarter net income compared with a year ago.
But the Nashville-based Pinnacle Bank said Tuesday its deposits grew by an annualized 10.1% and profits for the first nine months of 2023 were up 10.5% over the previous year. In its quarterly earnings report, Pinnacle CEO Terry Turner said despite the economic challenges of rising interest rates and a slowing pace of economic growth, the bank added 29 revenue producers in the past year.
Pinnacle said net income totaled $1.69 per share in the three months ended Sept. 30, down from the $1.91 earned in the same period a year ago. But for the first nine months of the year, Pinnacle still boosted net income by 10.5% to $5.99 per share. Adjusted earnings in the third quarter for Pinnacle were 4.8% better than Wall Street projections.
"During the quarter, we continued to avoid certain asset classes and reduced our exposure in loan segments with elevated risks and expect that to continue for the next few quarters," Turner said in a statement Tuesday. "Against that backdrop, we are also pleased that overall loan growth during the third quarter of 2023 was $790 million," up 10.1% from the previous year.
Turner said 54% of third quarter 2023 loan growth was related to commercial and industrial and owner-occupied commercial real estate categories, two segments Turner said the bank intends to continue to emphasize in the future.
— Compiled by Dave Flessner