The Bank Slate


Pinnacle gained $200M in deposits from failed banks

Pinnacle Financial Partners in Nashville, Tenn., was able to play offense and defense in the wake of two high-profile bank failures last month.

The $45 billion-asset Pinnacle identified about $200 million of new deposits that came from Silicon Valley Bank and Signature Bank, Terry Turner, the company’s president and CEO, said during a conference call to discuss quarterly results.

Pinnacle also empowered its employees to have proactive conversations with its largest uninsured depositors to educate them on topics such as deposit insurance, reciprocal deposit arrangements and the status of the bank’s securities portfolio.

“I don’t think they talked to very many people that had zero concern,” Turner said of conversations between employees and large depositors.

“I don’t think they talked to very many people that were extremely panicked, but clearly there was concern,” Turner added. “As you know information’s a powerful thing, so I think we were successful in sort of allaying concerns that people might have and highlighting the difference between our franchise and the two failed banks.”

Total deposits rose by 3.5%, to $36.2 billion, and Turner reiterated guidance that Pinnacle should have “high singe to low double-digit” growth in 2023.

Pinnacle also began tracking its 200 biggest uninsured depositors in the wake of the Silicon Valley and Signature failures, finding that those clients accounted for roughly $3.9 billion of deposits on March 10. The smallest of those accounts was about $9 million.

In the wake of the failures, about $45 million of those deposits left the bank to go to brokerage account or large-cap banks, Turner said. At the end of last week, the deposit levels in the biggest uninsured accounts were “up slightly” from where they were on March 10.

Pinnacle has also been aggressively hiring, adding 26 revenue producers in the first quarter. The company is still looking for talent, with a particular interest in the Florida markets of Tampa, Orlando and Jacksonville.

The company’s net income available to common shareholders rose by 6.5% from a year earlier, to $133.5 million.

Leave a Reply

Your email address will not be published. Required fields are marked *