Pinnacle Bank: SBA business acquisition lending record
Pinnacle Bank (home state TN) approved 449 SBA 7(a) loans to buy existing businesses since FY2018, totaling $650M. The median loan was $955,000. It ranks number 18 of 280 lenders by count and made 0.9% of all SBA acquisition loans nationally.
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What this tells a borrower
- Deal size it funds. Half of its acquisition loans fell between $498,000 and $1,990,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. California is the largest state (20% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Assisted Living Facilities for the Elderly is 12% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 1,497 SBA 7(a) loans of any purpose since FY2020, totaling $1.9B. 86% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 19% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 1.9% charged off, 46% lower than the 3.5% national average.
Pinnacle Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 29 | $24.5M | $615,000 | |
| FY2019 | 46 | $72M | $927,000 | |
| FY2020 | 66 | $85.6M | $728,000 | |
| FY2021 | 70 | $108M | $1,104,900 | |
| FY2022 | 65 | $101M | $1,070,000 | |
| FY2023 | 58 | $87.3M | $978,950 | |
| FY2024 | 30 | $40M | $950,000 | |
| FY2025 | 33 | $49.1M | $995,000 | |
| FY2026 | 52 | $82.3M | $1,004,850 |
How often do these acquisition loans fail?
Of the 211 Pinnacle Bank acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 4 have been charged off by the SBA, a rate of 1.9% by loan count and 0.7% by dollars. 119 have already been paid in full.
For comparison, the charge-off rate across all SBA 7(a) acquisition loans in the same cohort is 3.5%, so Pinnacle Bank is 46% lower than the acquisition-loan average. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
The purchase agreement decides what you bought, not the loan approval.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | California | 90 | 20.0% | $166M | |
| 2 | North Carolina | 73 | 16.3% | $92.4M | |
| 3 | Florida | 53 | 11.8% | $93.5M | |
| 4 | Tennessee | 52 | 11.6% | $58.8M | |
| 5 | Georgia | 45 | 10.0% | $63.6M | |
| 6 | South Carolina | 42 | 9.4% | $42.6M | |
| 7 | Virginia | 25 | 5.6% | $32.7M | |
| 8 | Alabama | 20 | 4.5% | $27.5M | |
| 9 | Texas | 11 | 2.4% | $17.3M | |
| 10 | Pennsylvania | 6 | 1.3% | $12.5M | |
| 11 | Maryland | 4 | 0.9% | $4.9M | |
| 12 | Mississippi | 4 | 0.9% | $4.8M | |
| 13 | Nebraska | 4 | 0.9% | $1.5M | |
| 14 | Ohio | 2 | 0.4% | $3.8M | |
| 15 | Arizona | 2 | 0.4% | $3.4M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Assisted Living Facilities for the Elderly | 54 | 12.0% | $65.8M | |
| 2 | Hotels (except Casino Hotels) and Motels | 28 | 6.2% | $94M | |
| 3 | Full-Service Restaurants | 19 | 4.2% | $13.9M | |
| 4 | Residential Remodelers | 10 | 2.2% | $12.7M | |
| 5 | Fitness and Recreational Sports Centers | 10 | 2.2% | $5.7M | |
| 6 | Child Care Services | 9 | 2.0% | $21.6M | |
| 7 | Limited-Service Restaurants | 9 | 2.0% | $5.8M | |
| 8 | All Other Specialty Trade Contractors | 8 | 1.8% | $14.9M | |
| 9 | Offices of Chiropractors | 8 | 1.8% | $7M | |
| 10 | Landscaping Services | 7 | 1.6% | $6.5M |
Terms signed in the LOI shape the purchase agreement that follows.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Plato's Closet | 5 | 1.1% | $4.7M | |
| 2 | Motel 6 | 4 | 0.9% | $19.7M | |
| 3 | La Quinta | 4 | 0.9% | $12.3M | |
| 4 | Quality Inn | 3 | 0.7% | $10.2M | |
| 5 | SureStay | 3 | 0.7% | $9.4M | |
| 6 | Screenmobile | 3 | 0.7% | $2M | |
| 7 | Ace Hardware | 3 | 0.7% | $1.9M | |
| 8 | Burn Boot Camp Fitness | 3 | 0.7% | $1.8M | |
| 9 | Hotworx | 3 | 0.7% | $1.4M | |
| 10 | Primrose Schools | 2 | 0.4% | $9.3M |
Questions buyers ask
Does Pinnacle Bank make SBA acquisition loans?
Yes. Pinnacle Bank approved 449 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 18 of 280 lenders with 25 or more such loans. The SBA file shows past approvals only; it cannot tell you whether the lender will approve a particular buyer or deal.
How large are Pinnacle Bank's acquisition loans?
The median was $955,000, with the middle half between $498,000 and $1,990,000. The national median is $645,250, so this lender's typical loan is 48% higher than the national figure.
Which states does Pinnacle Bank lend in?
California (90), North Carolina (73), Florida (53), Tennessee (52), Georgia (45), South Carolina (42). Its loans span at least 15 states.
Which industries does Pinnacle Bank finance?
Assisted Living Facilities for the Elderly (54), Hotels (except Casino Hotels) and Motels (28), Full-Service Restaurants (19), Residential Remodelers (10), Fitness and Recreational Sports Centers (10). The top industry is 12% of its acquisition loans.
How have Pinnacle Bank's acquisition loans performed?
Of 211 loans approved FY2018 to FY2021: 1.9% charged off, 46% lower than the 3.5% national acquisition average. Charge-offs reflect the borrowers and industries a lender serves as well as its underwriting.
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Related
- California acquisitions
- North Carolina acquisitions
- Florida acquisitions
- Assisted Living Facilities for the Elderly
- Hotels (except Casino Hotels) and Motels
- Full-Service Restaurants
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Pinnacle Bank.