Pinnacle Financial Partners gains $200M in deposits from failed banks

Nashville, Tenn.-based Pinnacle Financial Partners Inc. is tracking its uninsured deposits more closely since the run of recent bank failures, and it received about $200 million in deposits from former customers of Silicon Valley Bank and Signature Bank.

Following the March bank failures, Pinnacle began tracking its 200 largest uninsured depositors in order to determine how they have managed their deposit balances from just before the Silicon Valley Bank failure through the end of last week. Those depositors had about $3.9 billion collectively as of March 10, with the smallest account having about $9 million, President and CEO Terry Turner said during an earnings call. That collective total was up slightly on March 10, the CEO said.

Turner thinks Pinnacle was successful in alleviating concerns and communicating the difference between its "franchise and the two failed banks." The company gave its sales force information about its securities book, held-to-maturity loss and uninsured deposit percentages, which allowed them to better communicate the difference between Pinnacle's deposit book and those of the failed banks, the CEO said.

"We encourage them to be proactive, to be in touch with large depositors and so forth," Turner said. "I don't think they talked to very many people that had zero concern. I don't think they talked to very many people that were extremely panicked, but clearly, there was concern."

In addition, Turner said Pinnacle hired 26 revenue producers so far this year and is still looking to hire more in Florida.