Pinnacle Financial Partners Inc Q2 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : I wanted to ask, just if I could start on the fixed rate portion of the loan portfolio. I just wanted to ask if you knew what the dollar amount of fixed rate loans that we're repricing over the next 12 months were? And then when I kind of go back to your, your previous deck, it looks like fixed rate origination yields were about 4.75% to 5% about 4, 4.5 years ago. Is that a good yield to use when we think about what's rolling off the book for fixed rate loans right now? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 19, 2023 / 1:30PM, PNFP.OQ - Q2 2023 Pinnacle Financial Partners Inc Earnings Call

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : Got it. Okay. So I can just use that CRE portion as a proxy. Also on that just on the negotiated deposit book. I wanted to ask just what portion of that book has recently renegotiated on rate? And for those that have recently renegotiated, where are the new rates moving to?

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : Got it. And on the sale leaseback transaction, do you happen to know what the cap rate was on that transaction for the buyer?

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : Got it. Okay. And then you did have $100 million or just under $100 million of fixed rate CRE and construction loans that were maturing in the second quarter, at least per the slide deck last time. I wanted to ask just what happened to those loans? Did they re-up with you at your targeted rate? Did any of them leave the bank? And I guess, did any of them struggle with the increase in rates?

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : Got it. Okay. And just a couple of last ones. On the AFS portfolio, do you have to know what the effective duration of that portfolio is and what the conditional prepayment rate you're assuming in that duration calculation?

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : Yes, yes.

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : Okay. Do you know what the CPR is in that duration calculation, Harold?

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : Awesome. I appreciate it. And then just last one, just I think you might have touched on it earlier, but I'm sorry if I misheard you. Just the increase in the CRE reserve. Was there anything like -- was there any specific kind of metric that drove that increase within your CECL model just because it had been declining for the last several quarters?

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : I was more interested, Harold, within the ACL modeling if there was any specific variable where maybe there was a larger price decline that you were factoring in within the ACL modeling. I just -- that's what I was more getting at.