Pinnacle Financial Partners Inc. (NASDAQ:PNFP) Q1 2019 Earnings Conference Call Transcript

Apr 16, 2019 • 09:30 am ET

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Pinnacle Financial Partners Inc. (NASDAQ:PNFP) Q1 2019 Earnings Conference Call Transcript

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Q & A
Operator
Operator

Thank you, Mr. Turner. The floor is now open for your questions. (Operator Instructions)

Our first question is from the line of Stephen Scouten of Sandler O'Neill. Your line is open.

Analyst
Stephen Scouten

Hey, good morning, Terry, Harold, how are you doing?

Executive
M. Terry Turner

Good. Hope you are.

Analyst
Stephen Scouten

I am, thanks. So one of the things, Terry, that I love you to talk about is just how you guys continue to have this level of hiring activity and what an advantage that is and I think that's true. I'm curious how long you think you can maintain that goal, Turner? That's hard to say. But as you guys continue to grow bigger and bigger, at what point do you think you face some of the same impediments that these larger banks face today, the bureaucracy and so forth that -- that's allowed you to take advantage of them for so many years? Stephen, that's a great question. I just say this to you, I don't think you were around back in 2002 and 2003, but that was same question they were asking then, because we were a high growth bank, you know, albeit less than $1 billion at that point. We've sort of been a high growth bank all through and I think each time we sort of get a leg up through an acquisition or some stair-step job, everybody begins to question, how can you continue that culture. And so that's really one of the reasons I wanted to walk through those slides and show the fact that you know before we announced the BNC transaction, we were rated as the seventh Best Place to Work in terms of finance and insurance in the country which is a -- to me a monumental achievement.

I'd be proud of that if we were able to sustain that. But as we went through the merger, the brand transition, the system conversion, all that integration, we advanced up to the third best last year and then this year up to the second best. And you can see the level of engagement there with 94% say, hey, this is a great place to work and probably a great culture this distinctive (inaudible). So again, I just say that to say that I do think we have a strong culture which feeds on itself. I do think we're intentional about how we integrate it both with new hires and with new acquisitions, there's an immense amount of effort that goes into maintaining it.

I think to your point on the bureaucracy and so forth, I think that's really a fabulous question. And I do believe that at some point there will be a time where you know it'll just be impossible to sustain it because you'll get regulatory pressures and other things that will force you to operate more like those banks. But I believe that we're a long way from that. I would just use as an example Stephen, BB&T, you know, they ran for decades really using