Analyst Jeff Davis at Howe Barnes has raised his rating on the shares of Pinnacle Financial (Ticker: PNFP) to 'neutral' after their slide from $25 to $14 in two months. Davis expects the bank to raise anywhere between $75 million and $125 million before the end of the year, which likely won't help the stock in the coming weeks.
Near-term, the pending common raise will act as a governor on the shares unless 2Q09 results materially surprise to the upside in conjunction with a drop in NPAs; that seems unlikely.
Jun 1, 2009 6:50 AM
Sandler O'Neill's top bank analysts last week spent some time in New Orleans at the Gulf South Bank Conference. Here are some of the thoughts they took away from the presentations of and conversations with managers of some 20 regional banks, several of which have operations in Tennessee. - Loan growth is nowhere near as important as a year ago. "Regulators, banks, and investors now seem to be on the same page on capital," wrote managing directors Joe Fenech and Kevin Fitzsimmons. That echoes sounds that have come from other quarters of the industry, including the local folks at Pinnacle Financial and Tennessee Commerce, whose strong growth had them turning to TARP. - Bankers are getting their arms around their problems. "It seems loans are migrating through the respective credit management buckets ... in a more orderly and predictable fashion," the analysts wrote. - Institutions with a good number of hotel loans on their books will be sweating it this summer. Fenech and Fitzsimmons pass on word that a number of banks reported that the drop in leisure travel is beginning to bite the hospitality industry.
May 12, 2009 11:07 PM
The Carolina-based bank, which is the Nashville area's 13th-largest deposit-taker and the anchor tenant in The Gulch's Terrazzo tower, will raise $1.5 billion and cut its dividend.
"We have a long and proud history of paying dividends and understand how important the dividend is to our shareholders, so this decision to temporarily reduce the dividend was extremely difficult for the board and, for me personally, it marks the worst day in my 37 year career. However, we firmly believe this action is in the long-term best interests of our shareholders and our company because of the risk and uncertainty associated with being a TARP participant. In addition, our current earnings, while superior to our peers, are not likely to justify our $.47 dividend in the near term."
May 11, 2009 8:16 AM
“There are glimmers of hope” in the financial sector, Tennessee Sen. Bob Corker said Sunday on CNN’s State of the Union when asked if the industry had turned a corner. “I think it was a positive step,” said Corker of the Obama administrations’ recent “stress tests” on the nation’s largest banks. “But there will possibly be additional government dollars [for some financial institutions]. I think that hasn’t fully been said and I think that what we’ve got to be concerned about as we move into the future is not causing [the Troubled Asset Relief Program] to be codified so that it’s there forever.” “I actually am feeling better about it. I really am,” Corker, a member of the Senate Banking Committee, added.
May 10, 2009 10:35 PM
First, all the banks' results neatly in a row. Among the banks with a notable presence in Nashville, only U.S. Bank and BB&T were deemed not to need new capital. BofA, Wells Fargo, Regions, SunTrust and Fifth Third must raise a combined $53 billion. Then, from the AP comes a rundown of just how some of the affected players plan to raise the billions they need as well as word from those planning to repay TARP ASAP. And via the Journal, a measured look at how the once-maligned concept of stress tests – Wells chief Dick Kovacevich not long ago called them 'asinine' – may actually come to be seen as the positive tipping point when we collectively caught our breath.
Investors fretted for weeks that the Treasury wanted to nationalize parts of the banking system, despite repeated efforts by Mr. Geithner and others to dispel that idea. In retrospect, the tests were akin to hitting the pause button. The period allowed Mr. Geithner to buy time for the government's evolving approach to the banking crisis, which had previously been ad hoc and heavily criticized.
May 7, 2009 10:14 PM
The Times has the lowdown on the government's plan to share with us the results of the bank stress tests.
Goldman’s action has put pressure on other financial institutions to do the same or risk being judged in far worse shape by investors. The administration feared that details on healthier banks would inevitably leak out, leaving weaker banks exposed to speculation and damaging market rumors, possibly making any further bailouts more costly.
Apr 15, 2009 12:26 AM
The weekend ousting of Rick Wagoner as CEO of GM has prompted teeth gnashing from many corners of the business world about the role of government in business when government is a shareholder as well as a stakeholder. Some tasters: From Dennis Kneale on CNBC.com: "The bigger worry is this summary execution betrays a deep antipathy toward Big Business on the part of the Obama Administration. Lamentably, the president's henchmen may have imposed this coup mainly for reasons of image and example-setting. No wonder stocks are down big today." From Jeff Davis, bank analyst at Howe Barnes: "No doubt there will be widespread concern among business people regarding the government’s actions, but it should not be surprising as it is another indication of the costs of accepting government aid and capital. TARP preferred repayment likely will become more urgent for those banks that can afford to do so." New York investment banker Dan Ripp to the Wall Street Journal: "Why invest money in American industry when the government is capable of firing an experienced (if not, capable) executive and taking on the responsibilities of the firm itself?"
Mar 30, 2009 10:59 PM
The Obama administration on Monday raised some eyebrows with its plan to help get the small-business lending market going again. Central to the idea are higher loan guarantees and $15 billion of TARP money to add liquidity to the secondary market for SBA loans.
"There were two things I liked: the help for the securitization markets, and the President's call to make the banks report how much lending they are doing," said Keith Ashmus, a Cleveland-based attorney and chairman of the National Small Business Assn. "We are seeing business after business with a history of promptly paying their bills just get their credit lines canceled."Kent Hoover has a different take on just how much of an impact the plan might have.
Given the weak state of the economy, however, it is not clear how many small businesses want to borrow money at this time. A survey of small business owners conducted last month for Discover Financial Services found that 23 percent said they would be very likely to apply for an SBA loan if they became easier to get. Another 17 percent said it was somewhat likely they would apply for an SBA loan. The survey found, however, that 90 percent of small businesses had never applied for an SBA loan.
Mar 16, 2009 11:10 PM
Tennessee Bankers Association President Brad Barrett says lay off your local lender.
Your local Tennessee banks have been working hard for the last year, and will continue to work hard in 2009 to make sure they protect the assets of their depositors and shareholders, provide capital for local projects, and provide jobs for the 30,000-plus Tennesseans who work in the financial industry. I hope my fellow Tennesseans will think twice before taking out their frustrations with Wall Street on a banker from Main Street.HT: Josh Flory's Bank Draft.
Mar 16, 2009 3:55 PM