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Pinnacle Financial approves buyback of up to $100 million in stock

By Published: November 14, 2018 12:03 PM CT

Pinnacle Financial Partners Inc. has announced authorization of up to $100 million in common stock repurchases by Dec. 31, 2019.

The Nashville-based bank, the Memphis area’s sixth-largest institution by deposits last June 30, said Tuesday, Nov. 13, that “current market dynamics” prompted its board of directors to take the action despite a longstanding bias against a share repurchase program.

Pinnacle shares closed Tuesday at $52.94, up 46 cents and about 32 percent below a 52-week high of $69.95.

“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,” M. Terry Turner, Pinnacle’s president and chief executive officer, said in a release.

“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,” Turner said.

Pinnacle said it intended to fund the program with a combination of cash on hand, cash generated from operations and borrowings under a $75 million line of credit, under which there were no borrowings as of Sept. 30. It said the program could be extended, discontinued or otherwise changed at any time and doesn’t commit the company to repurchasing shares.

According to the Federal Deposit Insurance Corp., Pinnacle had just over $1 billion in deposits in the Memphis market on June 30, for 3.17 percent of the deposit market share.

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Pinnacle Financial Partners share repurchase program banking and finance

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