Pinnacle Acquires Interest In Bankers Healthcare Group, LLC
DAVIE, Fla., Feb. 18, 2015 /PRNewswire/ -- Pinnacle Financial Partners, Inc. (Nasdaq: PNFP) announced February 4, 2015 that its subsidiary, Pinnacle Bank, has acquired a 30 percent interest in Bankers Healthcare Group, LLC ("BHG"), a privately held company, for $75 million.
BHG is a leading provider of financing solutions for healthcare professionals throughout the United States. BHG's loan originations are sourced through a variety of distribution channels and primarily sold through an online auction process to a network of approximately 200 community banks. BHG's total revenues for the year ended Dec. 31, 2014 approximated $98 million with a pretax income of approximately $49 million.
"BHG's reputation in the medical community, growth trajectory and solid leadership make for a strong partnership," said M. Terry Turner, Pinnacle's president and chief executive officer. "We have enjoyed partnering with BHG over the last few years on several initiatives and look forward to working more closely together. We are particularly excited about incremental potential to distribute our financial services through their national distribution channel. While Pinnacle's affiliation has the potential to have a modest impact on our balance sheet volumes, the investment primarily will serve to increase and diversify our fee income, which has been an important strategic objective for our firm."
As part of the investment, Pinnacle will designate one member of BHG's four-person board. BHG's other three founders and executive officers will retain a 70 percent beneficial ownership interest in BHG and have contractually agreed to remain with the firm for an extended period of time.
"We are very excited about our affiliation with Pinnacle," said Al Crawford, BHG's chief executive officer and one of its three founders. "We believe that, as a result of this partnership, we will be even better positioned to continue the growth and profitability we have enjoyed. We look forward to exploring new opportunities that are available to both firms." Pinnacle expects that the investment will be approximately 7 to 9 percent accretive to the firm's estimated earnings per share in 2015. The investment was funded through a combination of cash and bank debt.
Sandler O'Neill + Partners, L.P. acted as financial advisor to Pinnacle Financial Partners, Inc. and Pinnacle Bank in connection with the transaction.
About Pinnacle Financial Partners, Inc.
Pinnacle Financial Partners provides a full range of banking, investment, trust, mortgage and insurance products and services designed for businesses and their owners and individuals interested in a comprehensive relationship with their financial institution.
The firm began operations in a single downtown Nashville location in October 2000 and has since grown to approximately $6.0 billion in assets at Dec. 31, 2014. At Dec. 31, 2014, Pinnacle is the second-largest bank holding company headquartered in Tennessee, with 29 offices in eight Middle Tennessee counties and five offices in Knoxville. Additionally, Great Place to Work® named Pinnacle one of the best workplaces in the United States on its 2014 Best Small & Medium Workplaces list published in FORTUNE magazine. The American Banker also recognized Pinnacle as the best bank to work for in the country.
Additional information concerning Pinnacle, which is included in the NASDAQ Financial-100 Index, can be accessed at www.pnfp.com.
About Bankers Healthcare Group, LLC
Since 2001, Bankers Healthcare Group has been committed to providing hassle-free financing solutions for healthcare professionals, allowing them to remain focused on delivering high quality care. BHG has provided more than $2 billion in funding to thousands of satisfied customers nationwide. Inc. has recognized the company nine times for growth and job creation. For additional information, please visit www.bhg-inc.com or follow Bankers Healthcare Group on Twitter.
Contact: Valerie Pietra (315) 679-5062
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SOURCE Bankers Healthcare Group, Inc.
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