Pinnacle Financial Partners Blog for Capstone Management Class

Pinnacle bank continues its expansion strategy. Since my last blog post, the company has announced that it has added 17 bank officers to its locations in the Chattanooga regions.

https://www.pnfp.com/about-pinnacle/media-room/pnfp-in-the-news/pinnacle-adds-17-bank-officers-since-buying-capitalmark

Approximately two years ago, the company purchased one of its smaller competitors, which is Capitalmark and now Pinnacle wants to continue to expand by adding bank officers who can bring in new business. 

According to a company press release...

     "Chattanooga has been one of our better performing markets and we see a lot of opportunity here for more growth," McCabe said in an address to the Chattanooga Rotary Club. "We started targeting this area in 2013, and we were very fortunate the acquire CapitalMark with its great people and market knowledge."

Pinnacle had less than 6.6 percent of the deposits in the Chattanooga metropolitan market in the latest FDIC report for last year. But McCabe said by hiring experienced bankers — all of whom have at least 10 years of proven experience— Pinnacle has succeeded in growing market share. He boldly predicted Thursday that Pinnacle will eventually displace at least one of the three top regional banks in Chattanooga.

"Our goal is to be No. 1, 2 or 3 in each of the markets where we operate," McCabe said. "We will probably add about one office a year (in the Chattanooga market), but we will grow primarily by having great bankers focus on their customers."

 

Chapter 10 is about vertical integration. Pinnacle has in house brokers who handle investments in-house rather than outsourcing to an investment firm. This is an example of vertical integration because the bank in participating in a new area along its value chain.