VOL. 132 | NO. 211 | Tuesday, October 24, 2017
Pinnacle Sees Major Growth in 2017
By Andy Meek
There’s not usually much in the way of big change reflected in the bank deposit market share report that comes out once a year from the Federal Deposit Insurance Corp. This year for the Memphis metropolitan statistical area, though, there was.
Pinnacle Financial Partners moved into the top 10 this year among the almost 60 financial institutions that operate in the market, according to the FDIC report released this month.
The ranking is based on each institution’s share of the market’s customer deposits. During the 12 months ended June 30, 2017 – the FDIC report is always current through June 30 – Pinnacle added more than $315 million in deposits in the MSA, representing a growth rate of 67 percent.
That growth moved the firm from No. 11 on the list in 2016 to No. 7 this year.
Though the report is something of a lagging snapshot of the marketplace since it’s only current through June 30, it’s still somewhat useful in assessing the market and individual institutions.
Pinnacle’s Memphis chairman Kirk Bailey said the bank’s performance over the past year as reflected in the report is a payoff on several fronts for Pinnacle.
One is a more aggressive push to raise the bank’s profile in Memphis, following its entry into the local market in April 2015 with Pinnacle’s acquisition of Memphis-based Magna Bank. The bank also been on a continuous hiring push.
“Certainly, the awareness of Pinnacle in the Memphis marketplace has increased over the past year due to a lot of good things we’re doing to get the brand name out there, to connect with people,” Bailey said. “So awareness is one thing.
“Another thing is we’ve added a number of producers in the last year, we call them FAs (financial advisers). They’re what you’d generally call loan officers – client-facing people. We’ve been fortunate to add a number of those in the last year that are starting to ring the bell and produce some results, so that’s certainly helping us.”
Another factor fueling the bank’s growth is just “asking for the business.” Bailey said the bank is out asking for deposits when it generates loans, which secures a deeper client relationship. And it also helps Pinnacle, because banks fund loans with deposits.
While all of that’s been working together, Pinnacle won’t grow 67 percent year-over-year every year, Bailey cautioned, “but we do expect double-digit growth for the next several years.”
Growth is an ongoing theme at the bank, which is close to finalizing details for a new branch in Midtown in 2018.
In addition to getting that Midtown space under contract, Pinnacle also is looking for the right fit for a few more branches in the area.
“I would expect us to have a few new branches over the next few years,” Bailey said, “as opportunities present themselves.”
During publicly traded Pinnacle’s most recent earnings presentation to Wall Street analysts a few days ago, Pinnacle president and CEO Terry Turner gave a nod to Pinnacle’s ambitions along these lines. More specifically, that the company is always thinking about growth.
“One of the things that I think distinguishes Pinnacle from many of our peers,” Turner said, “is our continuous and relentless focus on building additional infrastructure in the current period in order to continually propel the firm forward in terms of revenue and earnings growth.”
Since arriving in Memphis, Pinnacle became the official bank of the Memphis Grizzlies and FedExForum. It was also named a “Top 10 Company to Watch in 2017” by the Greater Memphis Chamber, and the Nashville-based bank – which had $20.9 billion in assets as of June 30 – is the second-largest bank holding company based in Tennessee, behind Memphis-based First Horizon National Corp.
“We’re growing,” Bailey said. “Both on the loan and deposit side and in the mortgage area. That’s the main story around Pinnacle right now.”