Pinnacle Invests $1 Million in United Housing

Pinnacle Financial Partners has invested $1 million in United Housing’s loan pool that will be used to finance first mortgages, make home-improvement loans and renovate properties for sale to low-income individuals.

United Housing (UHI) is a nonprofit affordable housing agency that serves the City of Memphis, Shelby County and West Tennessee. UHI targets its services to families that are underserved by the traditional homeownership industry.

Pinnacle’s million-dollar investment will help fund three different loan pools that finance first mortgages for small dollar amounts, finance second-mortgage loans for home improvements and acquire properties for renovation and resale.

“We are making this significant investment in United Housing because we believe affordable housing is critical to the success of the community,” said Kirk Bailey, Pinnacle’s Memphis chairman. “Helping provide homes for low-income individuals is Pinnacle’s top community priority in each of the markets we serve.”

Funds in the small-dollar loan pool will enable United Housing to originate loans below $50,000, which is typically the minimum loan floor for most mortgage lenders. Memphis has many properties that can be purchased, renovated and sold for less than $50,000.

“These loan pools fill a need that can’t be met through traditional financing avenues and open up the dream of homeownership to an underserved segment of the community,” said Tim Bolding, United Housing’s executive director. “We certainly appreciate the investment Pinnacle and other bank partners have made to provide affordable housing in Memphis.”

Funds in the home-improvement loan pool will be used to provide 10-year second mortgages at 1.5 percent interest to low-income borrowers. UHI will use funds in the acquisition/rehab pool to purchase properties for renovation and resale. Funds will allow for five units to be under construction at any given time and should support the development of up to 20 properties a year.

About Pinnacle

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. Pinnacle’s focus begins in recruiting top financial professionals. The American Banker recognized Pinnacle as the third best bank to work for in the country in 2015.

The firm began operations in a single downtown Nashville location in October 2000 and has since grown to more than $8.7 billion in assets at Dec. 31, 2015. As the second-largest bank holding company headquartered in Tennessee, Pinnacle operates in the state’s four largest markets, Nashville, Memphis, Knoxville and Chattanooga, as well as several surrounding counties.

Additional information concerning Pinnacle, which is included in the NASDAQ Financial-100 Index, can be accessed at www.pnfp.com.

About United Housing

Founded in 1994 as an affiliate of the United Way of the Mid-South, UHI has continued to serve Memphis and Shelby County by helping more than 4,000 families own a home. In January of 2000, UHI joined the NeighborWorks America Network. Through this network UHI is linked to over 230 local nonprofits nationwide working to revitalize America’s declining neighborhoods.

###