Business Wire | Oct 20, 2020 05:30PM EDT

PNFP Reports Diluted EPS of $1.42, ROAA of 1.26% and ROTCE of 15.85% For 3Q 2020

Oct. 20, 2020

NASHVILLE, Tenn.--(BUSINESS WIRE)--Oct. 20, 2020--Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported net income per diluted common share of $1.42 for the quarter ended Sept. 30, 2020, compared to net income per diluted common share of $1.44 for the quarter ended Sept. 30, 2019, a decrease of 1.4 percent. Excluding gains and losses on the sale of investment securities and ORE expense for the three months ended Sept. 30, 2020 and 2019 and FHLB restructuring charges for the three months ended Sept. 30, 2020, net income per diluted common share was $1.45 for both the three months ended Sept. 30, 2020 and 2019.

Net income per diluted common share was $2.62 for the nine months ended Sept. 30, 2020, compared to net income per diluted common share of $3.97 for the nine months ended Sept. 30, 2019, a decrease of 34.0 percent. Excluding gains and losses on the sale of investment securities and ORE expense for the nine months ended Sept. 30, 2020 and 2019, FHLB restructuring charges for the nine months ended Sept. 30, 2020, and branch rationalization charges and a loss from the sale of Pinnacle Bank's non-prime automobile portfolio for the nine months ended Sept. 30, 2019, net income per diluted common share was $2.72 in 2020, compared to $4.11 in 2019, a year-over-year decrease of 33.8 percent.

"Late in the first quarter, we transitioned our firm from an offensive to a defensive posture, which entailed things like allocating significant resources to the re-risk grading of a significant portion of our loan portfolio and limiting the continuous recruitment and hiring of revenue producers, which has been a key driver historically in our outsized growth," said M. Terry Turner, Pinnacle's president and chief executive officer. "Subsequently, we also altered our internal communications and annual cash incentive plan to encourage associates to aggressively identify and deal with any problem credits while continuing to focus on growing pre-tax, pre-provision net revenues (PPNR) for the remainder of 2020 as we seek to better position our firm to grow EPS at the conclusion of the economic disruption resulting from the pandemic. Key emphasis and initiatives that we launched in support of growing PPNR included lowering our cost of client deposits, growing low-cost core deposits to replace non-core funding, negotiating floors on new and renewed loans and increasing our total share-of-wallet from our existing clients."

BALANCE SHEET GROWTH:

* Loans at Sept. 30, 2020 were $22.5 billion, an increase of $3.1 billion from Sept. 30, 2019, reflecting year-over-year growth of 16.2 percent. Loans at Sept. 30, 2020 decreased approximately $42.9 million from June 30, 2020. Loan volumes at Sept. 30, 2020 include approximately $2.3 billion of loans issued through the Small Business Administration's (SBA's) Paycheck Protection Program (PPP) during the second quarter of 2020. The average yield on these loans, inclusive of $9.8 million of loan fee accretion recognized in the quarter, was 2.77 percent for the third quarter of 2020. Average loans were $22.5 billion for the three months ended Sept. 30, 2020, up $236.0 million from $22.3 billion for the three months ended June 30, 2020, a linked-quarter annualized growth rate of 4.2 percent. At Sept. 30, 2020, the remaining discount associated with fair value accounting adjustments on acquired loans was $32.3 million, compared to $38.0 million at June 30, 2020. At Sept. 30, 2020, there were $60.2 million in SBA PPP loan fees remaining, which should be accreted into net interest income over the next two years as these loans are paid by borrowers or are forgiven under the PPP.

* Deposits at Sept. 30, 2020 were a record $26.5 billion, an increase of $6.5 billion from Sept. 30, 2019, reflecting year-over-year growth of 32.7 percent. Deposits at Sept. 30, 2020 increased $1.0 billion from June 30, 2020, reflecting a linked-quarter annualized growth rate of 16.0 percent. Average deposits were $26.4 billion for the three months ended Sept. 30, 2020, compared to $24.8 billion for the three months ended June 30, 2020, a linked-quarter annualized growth rate of 24.9 percent. Core deposits were $22.0 billion at Sept. 30, 2020, compared to $17.1 billion at Sept. 30, 2019 and $21.4 billion at June 30, 2020. The linked-quarter annualized growth rate of core deposits in the third quarter of 2020 was 11.4 percent.

"Core deposit growth, excluding the impact of the Paycheck Protection Program, has been tremendous and continues to be a real highlight for 2020," Turner said. "Although it is difficult to measure precisely the level of increased deposits that came to us from the PPP, our research continues to indicate that our PPP borrowers have increased their deposit balances with our firm by roughly $1.5 billion between March 31, 2020 and Sept. 30, 2020, or approximately 44.0 percent of our core deposit growth of $3.4 billion during that same time period. So our initiatives to grow low-cost core deposits beyond any growth associated with PPP borrowers have yielded great results.

"Since the onset of the pandemic, we have been discussing that loan growth will be soft for the next few quarters due to the pandemic. Traditionally, our business model has produced outsized growth as we are continually focused on recruiting revenue producers to our firm. Earlier this year, we elected to pull back on our planned recruiting. Even with that, for the first nine months of 2020 we have attracted 56 revenue producers to our firm compared to 67 for the first nine months of 2019. We are now experiencing increased interest from many revenue producers at the regional and national firms. Thus, we are re-connecting with these prospective hires as we believe they will enable us to capitalize on the massive market-share take away opportunity that Greenwich Associates is predicting for our industry based on the number of middle-market businesses that have indicated they intend to switch banks. According to Greenwich, handling of loan requests during the pandemic and poor service of PPP lending has put an unusually large number of clients in play. In addition to our ability to attract some of the best relationship managers from these larger regional and national franchises, we believe our record for a client-friendly approach to handling payment deferrals and our outsized performance on PPP lending should enable us to harvest a great number of vulnerable clients from our larger competitors."

PROFITABILITY:

* Return on average assets was 1.26 percent for the third quarter of 2020, compared to 0.77 percent for the second quarter of 2020 and 1.62 percent for the third quarter of 2019. Third quarter 2020 return on average tangible assets amounted to 1.33 percent, compared to 0.81 percent for the second quarter of 2020 and 1.74 percent for the third quarter of 2019. Excluding the adjustments described above for both 2020 and 2019, return on average assets was 1.28 percent for the third quarter of 2020, compared to 0.82 percent for the second quarter of 2020 and 1.62 percent for the third quarter of 2019. Likewise, excluding those same adjustments, the firm's return on average tangible assets was 1.36 percent for the third quarter of 2020, compared to 0.87 percent for the second quarter of 2020 and 1.74 percent for the third quarter of 2019.

* Return on average equity for the third quarter of 2020 amounted to 8.92 percent, compared to 5.58 percent for the second quarter of 2020 and 10.28 percent for the third quarter of 2019. Excluding preferred stockholders' equity for the three months ended Sept. 30 and June 30, 2020, respectively, return on average common equity for the third quarter of 2020 amounted to 9.35 percent, compared to 5.66 percent for the second quarter of 2020 and 10.28 percent for the third quarter of 2019. Third quarter 2020 return on average tangible common equity amounted to 15.85 percent, compared to 9.77 percent for the second quarter of 2020 and 18.28 percent for the third quarter of 2019. Excluding the adjustments described above for both 2020 and 2019, return on average tangible common equity amounted to 16.19 percent for the third quarter of 2020, compared to 10.45 percent for the second quarter of 2020 and 18.31 percent for the third quarter of 2019.

"Our profitability metrics rebounded in the third quarter," said Harold R. Carpenter, Pinnacle's chief financial officer. "A modest reserve build along with an increase in adjusted PPNR were large contributors to the increased profitability this quarter. The reduced provision expense was primarily due to a more favorable forecasted unemployment outlook, reduced loan growth and net charge-offs of $13 million this quarter. We believe loan growth will achieve an annualized growth rate of low-single digits this year, exclusive of PPP lending. After steady monthly declines since March 2020, we were pleased that monthly new loan bookings increased throughout the last two months of the third quarter after hitting a low point for 2020 in July. Obviously, national politics and the pandemic will impact the velocity of any economic recovery for the remainder of this year and into next year. Also, contributing to the meaningful growth in PPNR was approximately 12 percent growth in net interest income due to increased PPP revenues along with BHG having another strong fee quarter.

"Consistent with our initiatives to gather low-cost core deposits, we believe deposit flows will remain strong for the remainder of the year. Since reducing our cost of funds is one of the most important initiatives to advancing our PPNR going into 2021, we continue to target a less than 0.25 percent overall deposit rate for the firm, and our relationship managers are actively working with depositors to accelerate deposit repricing."

MAINTAINING A STRONG BALANCE SHEET:

* Net charge-offs were $13.1 million for the quarter ended Sept. 30, 2020, compared to $5.4 million for the quarter ended June 30, 2020 and $4.9 million for the quarter ended Sept. 30, 2019. Annualized net charge-offs as a percentage of average loans for the quarter ended Sept. 30, 2020 were 0.23 percent, compared to 0.10 percent for the quarter ended June 30, 2020 and 0.10 percent for the third quarter of 2019. Annualized net charge-offs as a percentage of average loans for the nine months ended Sept. 30, 2020 were 0.18 percent, compared to 0.09 percent for the first nine months of 2019. * Nonperforming assets were 0.40 percent of total loans and ORE at Sept. 30, 2020, compared to 0.38 percent at June 30, 2020 and 0.53 percent at Sept. 30, 2019. Nonperforming assets were $90.8 million at Sept. 30, 2020, compared to $84.7 million at June 30, 2020 and $103.3 million at Sept. 30, 2019. * The classified asset ratio at Sept. 30, 2020 was 9.9 percent, compared to 11.2 percent at June 30, 2020 and 13.5 percent at Sept. 30, 2019. Classified assets were $307.8 million at Sept. 30, 2020, compared to $338.4 million at June 30, 2020 and $363.2 million at Sept. 30, 2019. * The allowance for credit losses represented 1.28 percent of total loans at Sept. 30, 2020, compared to 1.27 percent at June 30, 2020 and 0.48 percent at Sept. 30, 2019. Excluding PPP loans, the allowance for credit losses as a percentage of loans was 1.43 percent at Sept. 30, 2020 and 1.41 percent at June 30, 2020. The ratio of the allowance for credit losses to nonperforming loans at Sept. 30, 2020 was 404.3 percent compared to 456.1 percent at June 30, 2020 and 127.8 percent at Sept. 30, 2019. At Sept. 30, 2020, purchased credit deteriorated loans of $7.0 million, which were recorded at fair value upon acquisition, represented 9.9 percent of the firm's nonperforming loans. Provision for credit losses was $16.3 million in the third quarter of 2020, compared to $68.3 million in the second quarter of 2020 and $8.3 million in the third quarter of 2019. * During the second quarter of 2020, the firm successfully issued 9.0 million depositary shares, each representing a 1/40th fractional interest in a share of Series B noncumulative, perpetual preferred stock in a registered public offering to both retail and institutional investors. Net proceeds from the transaction after issuance costs were approximately $217.1 million. The net proceeds, which have been retained at Pinnacle Financial, contributed to an increase in Tier 1 capital at Pinnacle Financial and will continue to provide additional capital for general corporate purposes.

"Credit metrics remain strong and were basically consistent between the second and third quarters," Carpenter said. "We continue to exert great effort to assess and address the risk in our loan book, particularly with respect to the various segments within our loan portfolio that we believe are the most impacted by COVID-19, namely hospitality, restaurants, retail and entertainment. In the second and third quarters, our relationship managers and credit officers reviewed risk grades on approximately $10.0 billion of our C&I, CRE and construction portfolios with no significant downgrades identified.

"We've continued to make excellent progress with respect to reducing borrower deferrals. During April 2020, borrower deferrals topped out at approximately $4.4 billion. At Sept. 30, 2020, deferrals had decreased to $724 million and, as of Oct. 16, 2020, loans for which principal and/or interest was being deferred had decreased to $414 million, or roughly 1.8 percent of loans outstanding."

REVENUES:

* Revenues for the quarter ended Sept. 30, 2020 were $297.7 million, an increase of $24.0 million from the $273.6 million recognized in the second quarter of 2020, an annualized growth rate of 35.2 percent. Revenues were up $19.2 million from the third quarter of 2019, a year-over-year growth rate of 6.9 percent. Revenue per fully diluted common share was at an all-time record of $3.95 for the three months ended Sept. 30, 2020, compared to $3.63 for the second quarter of 2020 and $3.64 for the third quarter of 2019, an 8.5 percent year-over-year growth rate. * Net interest income for the quarter ended Sept. 30, 2020 was $206.6 million, compared to $200.7 million for the second quarter of 2020 and $195.8 million for the third quarter of 2019, a year-over-year growth rate of 5.5 percent. Net interest margin was 2.82 percent for the third quarter of 2020, compared to 2.87 percent for the second quarter of 2020 and 3.43 percent for the third quarter of 2019. * Impacting the firm's net interest income and net interest margin in the third quarter was the impact of both the PPP and the firm's building and maintenance of additional on-balance sheet liquidity as a result of the pandemic. PPP loans outstanding on average were $2.2 billion during the third quarter of 2020. Additionally, the firm also maintained approximately $2.6 billion in average excess liquidity, primarily in Federal funds sold and other cash equivalent balances. The firm's third quarter 2020 net interest margin was negatively impacted by approximately 40 basis points as a result of PPP loans and building and maintaining excess liquidity, compared to 32 basis points in the second quarter of 2020. * Included in net interest income for the third quarter of 2020 was $5.6 million of discount accretion associated with fair value adjustments, compared to $5.8 million of discount accretion recognized in the second quarter of 2020 and $11.1 million in the third quarter of 2019. The firm's net interest margin was positively impacted by approximately 9 basis points as a result of fair value adjustment discount accretion in each of the second and third quarters of 2020. There remains $25.2 million of purchase accounting discount accretion as of Sept. 30, 2020. During the third quarter of 2020, the firm prepaid $500 million in FHLB advances with a weighted average rate of 0.71 percent and a remaining weighted average term of 0.7 years resulting in $2.0 million of prepayment penalties which were recognized during the quarter. * Noninterest income for the quarter ended Sept. 30, 2020 was $91.1 million, compared to $73.0 million for the second quarter of 2020, a linked-quarter annualized growth rate of 99.3 percent. Compared to $82.6 million for the third quarter of 2019, noninterest income grew 10.2 percent year-over-year. Wealth management revenues, which include investment, trust and insurance services, were $13.0 million for the quarter ended Sept. 30, 2020, compared to $12.2 million for the second quarter of 2020 and $12.1 million for the third quarter of 2019, a year-over-year increase of 7.3 percent. Income from the firm's investment in BHG was $26.4 million for the quarter ended Sept. 30, 2020, up 53.7 percent compared to $17.2 million for the quarter ended June 30, 2020 and down 18.0 percent, compared to $32.2 million for the quarter ended Sept. 30, 2019. Net gains on mortgage loans sold were $19.5 million during the quarter ended Sept. 30, 2020, down slightly from $19.6 million for the quarter ended June 30, 2020. Net gains on mortgage loans sold were up 162.8 percent, compared to $7.4 million during the quarter ended Sept. 30, 2019. This dramatic growth primarily reflects market conditions as well as the addition of 11 revenue producing mortgage originators over the last 18 months. Other noninterest income was $21.7 million for the quarter ended Sept. 30, 2020, compared to $17.2 million for the quarter ended June 30, 2020 and $20.2 million for the quarter ended Sept. 30, 2019, a year-over-year increase of 7.0 percent. Contributing to the year-over-year growth were increases in SBA loan fees, loan swap fees and policy benefits from the firm's bank-owned life insurance policies.

"We are reporting a net interest margin for the third quarter of 2.82 percent impacted meaningfully by the lower yielding PPP loans and our liquidity build," Carpenter said. "These items will continue to impact our margin results over the next few quarters, but eventually their impact will lessen, allowing the GAAP margin to be more indicative of underlying business trends. Our focus for the next few quarters will be to continue to reduce our deposit costs for both core and wholesale funding sources. We also anticipate reducing our level of liquidity over the next three to four quarters and expect that eventually we will find our way to historical balance sheet liquidity levels. Additionally, consistent with our initiatives to advance PPNR, supporting our net interest margin are loan floors on approximately 54.8 percent of our variable rate loan portfolio as of Sept. 30, 2020 compared to 43.7 percent at Dec. 31, 2019.

"With improvement in various equity markets and consistent with our emphasis on capitalizing on share-of-wallet opportunities, wealth management rebounded in the third quarter with a nice increase in revenues. Our residential mortgage business continues to have a big year with $512.0 million of secondary market placements in the third quarter. Revenues at BHG have proven to be remarkably resilient and continue to outperform and exceed expectations. For the first nine months of 2020, BHG further strengthened its balance sheet by increasing its reserves, while at the same time reporting quarter-over-quarter net earnings growth. Last quarter, BHG granted deferrals to nearly 15 percent of its loans. At Sept. 30, 2020, BHG reported expiration of substantially all COVID-related loan deferrals."

OPERATING LEVERAGE AND OTHER HIGHLIGHTS:

* The firm's efficiency ratio for the third quarter of 2020 was 48.5 percent, compared to 48.1 percent for the second quarter of 2020 and 47.7 percent in the third quarter of 2019. The ratio of noninterest expenses to average assets was 1.70 percent for the third quarter of 2020, compared to 1.61 percent in the second quarter of 2020 and 1.94 percent in the third quarter of 2019. Excluding the adjustments described above for both 2020 and 2019, the efficiency ratio was 47.3 percent for the third quarter of 2020, compared to 46.0 percent for the second quarter of 2020 and 47.6 percent for the third quarter of 2019. Excluding ORE expense for 2020 and 2019 and FHLB restructuring charges for 2020, the ratio of noninterest expense to average assets was 1.65 percent for the third quarter of 2020, compared to 1.54 percent for the second quarter of 2020 and 1.93 percent for the third quarter of 2019. * Noninterest expense for the quarter ended Sept. 30, 2020 was $144.3 million, compared to $131.6 million in the second quarter of 2020 and $132.9 million in the third quarter of 2019, reflecting a year-over-year increase of 8.5 percent. Excluding ORE expense for 2020 and 2019 and FHLB restructuring charges for 2020, noninterest expense for the third quarter of 2020 increased 6.2 percent over the third quarter of 2019. Salaries and employee benefits were $90.1 million in the third quarter of 2020, compared to $73.9 million in the second quarter of 2020 and $85.9 million in the third quarter of 2019, reflecting a year-over-year increase of 4.9 percent. Included in salaries and employee benefits are costs related to the firm's annual cash incentive plan. Incentive costs for this plan amounted to approximately $15.2 million in the third quarter of 2020, compared to $573,000 in the second quarter of 2020 and $18.5 million in the third quarter of last year. In the second quarter of 2020, as a result of the pandemic's impact on the firm's anticipated earnings for this year, the firm reduced its accrual for payouts to approximately 25 percent of associate annual target awards under its broad-based cash incentive plan for 2020. Early in the third quarter, the firm modified its annual cash incentive plan to take into account new PPNR goals and initiatives for 2020 and, as a result, increased its incentive costs from approximately 25 percent of associate annual target awards to approximately 50 percent of associate annual target awards in order to account for the plan modification.

* The effective tax rate for the third quarter of 2020 was 19.3 percent, compared to 15.2 percent for the second quarter of 2020 and 19.5 percent for the third quarter of 2019.

"Expenses increased in the third quarter of 2020 due primarily to the restructuring of our annual cash incentive plan with the addition of a PPNR growth component," Carpenter said. "At June 30, 2020, we were accruing a 25 percent target level payout. This reduced target payout was a direct result of the increased provisioning incurred by the firm during the first six months of 2020. Early in the third quarter, in order to ensure that our associates are appropriately focused on combating the impact of COVID-19 on our results for this year as well as to appropriately focus our associates on preparing to capitalize on opportunities that we believe will exist following the pandemic, we determined that a modest increase to the annual incentive opportunity for 2020 was warranted, so we correlated the additional incentive opportunity to growth in PPNR for 2020 over last year. As a result of that modification to the plan, we have increased our cash incentive plan accrual to 50 percent of our associates' annual target award. As we consider expense run rates for 2020, our belief is that our 2020 expense growth will result in a mid-single digit percentage increase in comparison to the annualize run rate from the fourth quarter of 2019."

BOARD OF DIRECTORS DECLARES DIVIDENDS

On Oct. 20, 2020, Pinnacle Financial's Board of Directors approved a quarterly cash dividend of $0.16 per common share to be paid on Nov. 27, 2020 to common shareholders of record as of the close of business on Nov. 6, 2020. Additionally, on that same day, Pinnacle Financial's Board of Directors approved a quarterly dividend of approximately $3.8 million, or $16.88 per share (or $0.422 per depositary share), on Pinnacle Financial's 6.75 percent Series B Non-Cumulative Perpetual Preferred Stock payable on Dec. 1, 2020 to shareholders of record at the close of business on Nov. 16, 2020.

The amount and timing of any future dividend payments to both preferred and common shareholders will be subject to the approval of Pinnacle's Board of Directors.

WEBCAST AND CONFERENCE CALL INFORMATION

Pinnacle will host a webcast and conference call at 8:30 a.m. CT on Oct. 21, 2020, to discuss third quarter 2020 results and other matters. To access the call for audio only, please call 1-877-602-7944. For the presentation and streaming audio, please access the webcast on the investor relations page of Pinnacle's website at www.pnfp.com.

For those unable to participate in the webcast, it will be archived on the investor relations page of Pinnacle's website at www.pnfp.com for 90 days following the presentation.

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. The firm is the No. 1 bank in the Nashville-Murfreesboro-Franklin MSA, according to 2020 deposit data from the FDIC. Pinnacle earned a spot on FORTUNE's 2020 list of 100 Best Companies to Work For(r) in the U.S., its fourth consecutive appearance. American Banker recognized Pinnacle as one of America's Best Banks to Work For seven years in a row.

Pinnacle owns a 49 percent interest in Bankers Healthcare Group (BHG), which provides innovative, hassle-free financial solutions to healthcare practitioners and other licensed professionals. Great Place to Work and FORTUNE ranked BHG No. 1 on its 2020 list of Best Workplaces in New York State in the small/medium business category.

The firm began operations in a single location in downtown Nashville, TN in October 2000 and has since grown to approximately $33.8 billion in assets as of Sept. 30, 2020. As the second-largest bank holding company headquartered in Tennessee, Pinnacle operates in 12 primarily urban markets in Tennessee, the Carolinas, Virginia and Atlanta.

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

Forward-Looking Statements

All statements, other than statements of historical fact, included in this press release, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "expect," "anticipate," "intend," "may," "should," "plan," "believe," "seek," "estimate" and similar expressions are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, including, but not limited to: (i) further deterioration in the financial condition of borrowers of Pinnacle Bank and its subsidiaries or BHG resulting in significant increases in loan losses and provisions for those losses and, in the case of BHG, substitutions; (ii) the further effects of the emergence of widespread health emergencies or pandemics, including the magnitude and duration of the COVID-19 pandemic and its impact on general economic and financial market conditions and on Pinnacle Financial's and its customers' business, results of operations, asset quality and financial condition; (iii) the ability to grow and retain low-cost core deposits and retain large, uninsured deposits, including during times when Pinnacle Bank is seeking to lower rates it pays on deposits; (iv) the inability of Pinnacle Financial, or entities in which it has significant investments, like BHG, to maintain the historical growth rate of its, or such entities', loan portfolio; (v) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (vi) effectiveness of Pinnacle Financial's asset management activities in improving, resolving or liquidating lower-quality assets; (vii) the impact of competition with other financial institutions, including pricing pressures and the resulting impact on Pinnacle Financial's results, including as a result of compression to net interest margin; (viii) adverse conditions in the national or local economies including in Pinnacle Financial's markets throughout Tennessee, North Carolina, South Carolina, Georgia and Virginia, particularly in commercial and residential real estate markets; (ix) fluctuations or differences in interest rates on loans or deposits from those that Pinnacle Financial is modeling or anticipating, including as a result of Pinnacle Bank's inability to better match deposit rates with the changes in the short-term rate environment, or that affect the yield curve; (x) the results of regulatory examinations; (xi) Pinnacle Financial's ability to identify potential candidates for, consummate, and achieve synergies from, potential future acquisitions; (xii) difficulties and delays in integrating acquired businesses or fully realizing costs savings and other benefits from acquisitions; (xiii) BHG's ability to profitably grow its business and successfully execute on its business plans; (xiv) risks of expansion into new geographic or product markets including the recent expansion into the Atlanta, Georgia metro market; (xv) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including goodwill or other intangible assets; (xvi) reduced ability to attract additional financial advisors (or failure of such advisors to cause their clients to switch to Pinnacle Bank), to retain financial advisors (including as a result of the competitive environment for associates) or otherwise to attract customers from other financial institutions; (xvii) deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xviii) inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies, required capital maintenance levels or regulatory requests or directives, particularly if Pinnacle Bank's level of applicable commercial real estate loans were to exceed percentage levels of total capital in guidelines recommended by its regulators; (xix) approval of the declaration of any dividend by Pinnacle Financial's board of directors; (xx) the vulnerability of Pinnacle Bank's network and online banking portals, and the systems of parties with whom Pinnacle Bank contracts, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; (xxi) the possibility of increased compliance and operational costs as a result of increased regulatory oversight (including by the Consumer Financial Protection Bureau), including oversight of companies in which Pinnacle Financial or Pinnacle Bank have significant investments, like BHG, and the development of additional banking products for Pinnacle Bank's corporate and consumer clients; (xxii) the risks associated with Pinnacle Financial and Pinnacle Bank being a minority investor in BHG, including the risk that the owners of a majority of the equity interests in BHG decide to sell the company if not prohibited from doing so by Pinnacle Financial or Pinnacle Bank; (xxiii) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, like BHG, including regulatory or legislative developments; (xxiv) the availability of and access to capital; (xxv) adverse results (including costs, fines, reputational harm, inability to obtain necessary approvals and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of Pinnacle Bank's participation in and execution of government programs related to the COVID-19 pandemic; and (xxvi) general competitive, economic, political and market conditions. Additional factors which could affect the forward looking statements can be found in Pinnacle Financial's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the SEC and available on the SEC's website at http://www.sec.gov. Pinnacle Financial disclaims any obligation to update or revise any forward-looking statements contained in this press release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Matters

This release contains certain non-GAAP financial measures, including, without limitation, earnings per diluted common share, efficiency ratio, adjusted PPNR and the ratio of noninterest expense to average assets, excluding in certain instances the impact of expenses related to other real estate owned, gains or losses on sale of investment securities, the charges associated with Pinnacle Financial's branch rationalization project, FHLB restructuring expenses, the sale of the remaining portion of Pinnacle Bank's non-prime automobile portfolio and other matters for the accounting periods presented. This release also includes non-GAAP financial measures which exclude the impact of loans originated under the PPP. This release may also contain certain other non-GAAP capital ratios and performance measures that exclude the impact of goodwill and core deposit intangibles associated with Pinnacle Financial's acquisitions of BNC, Avenue Bank, Magna Bank, CapitalMark Bank & Trust, Mid-America Bancshares, Inc., Cavalry Bancorp, Inc. and other acquisitions which collectively are less material to the non-GAAP measure as well as the impact of Pinnacle Financial's Series B Preferred Stock. The presentation of the non-GAAP financial information is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. Because non-GAAP financial measures presented in this release are not measurements determined in accordance with GAAP and are susceptible to varying calculations, these non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures presented by other companies.

Pinnacle Financial believes that these non-GAAP financial measures facilitate making period-to-period comparisons and are meaningful indications of its operating performance. In addition, because intangible assets such as goodwill and the core deposit intangible, and the other items excluded each vary extensively from company to company, Pinnacle Financial believes that the presentation of this information allows investors to more easily compare Pinnacle Financial's results to the results of other companies. Pinnacle Financial's management utilizes this non-GAAP financial information to compare Pinnacle Financial's operating performance for 2020 versus certain periods in 2019 and to internally prepared projections.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - UNAUDITED

(dollars in thousands)

September 30, December 31, September 30, 2020 2019 2019

ASSETS

Cash and noninterest-bearing $ 179,231 $ 157,901 $ 197,660 due from banks

Restricted cash 247,761 137,045 157,544

Interest-bearing due from 2,604,646 210,784 553,124 banks

Federal funds sold and other 11,687 20,977 11,975

Cash and cash equivalents 3,043,325 526,707 920,303

Securitiesavailable-for-sale, at fair 3,463,422 3,539,995 3,393,435 value

Securities held-to-maturity(fair value of $1.1 billion,net of allowance for creditlosses of $191,000 at Sept. 1,039,650 188,996 189,684 30, 2020, $201.2 million and$202.8 million at Dec. 31,2019 and Sept. 30, 2019,respectively)

Consumer loans held-for-sale 82,748 81,820 73,042

Commercial loans 12,290 17,585 21,312 held-for-sale

Loans 22,477,409 19,787,876 19,345,642

Less allowance for credit (288,645 ) (94,777 ) (93,647 ) losses

Loans, net 22,188,764 19,693,099 19,251,995

Premises and equipment, net 287,711 273,932 274,983

Equity method investment 289,301 278,037 267,097

Accrued interest receivable 101,762 84,462 81,124

Goodwill 1,819,811 1,819,811 1,830,652

Core deposits and other 44,713 51,130 39,349 intangible assets

Other real estate owned 19,445 29,487 30,049

Other assets 1,431,989 1,220,435 1,174,809

Total assets $ 33,824,931 $ 27,805,496 $ 27,547,834

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits:

Noninterest-bearing $ 7,050,670 $ 4,795,476 $ 4,702,155

Interest-bearing 4,995,769 3,630,168 3,372,028

Savings and money market 10,513,645 7,813,939 7,625,872 accounts

Time 3,983,872 3,941,445 4,300,622

Total deposits 26,543,956 20,181,028 20,000,677

Securities sold under 127,059 126,354 95,402 agreements to repurchase

Federal Home Loan Bank 1,287,738 2,062,534 2,052,548 advances

Subordinated debt and other 670,273 749,080 750,488 borrowings

Accrued interest payable 26,101 42,183 36,836

Other liabilities 382,496 288,569 317,253

Total liabilities 29,037,623 23,449,748 23,253,204

Preferred stock, no parvalue, 10.0 million sharesauthorized; 225,000 sharesnon-cumulative perpetualpreferred stock, Series B,liquidation preference 217,126 - - $225.0 million, issued andoutstanding at Sept. 30,2020 and no shares issuedand outstanding at Dec. 31,2019 and Sept. 30, 2019,respectively

Common stock, par value$1.00, 180.0 million sharesauthorized; 75.8 million,76.6 million and 76.7 75,835 76,564 76,736 million shares issued andoutstanding at Sept. 30,2020, Dec. 31, 2019 andSept. 30, 2019, respectively

Additional paid-in capital 3,023,430 3,064,467 3,070,235

Retained earnings 1,312,929 1,184,183 1,100,517

Accumulated othercomprehensive income, net of 157,988 30,534 47,142 taxes

Total stockholders' equity 4,787,308 4,355,748 4,294,630

Total liabilities and $ 33,824,931 $ 27,805,496 $ 27,547,834 stockholders' equity



This information is preliminary and based on company data available at the timeof the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(dollars in thousands, except for per share data)

Three months ended

Nine months ended

September 30,

2020

June 30,

2020

September 30,

2019

September 30,

2020

September 30,

2019

Interest income:

Loans, including fees

$

224,482

$

226,281

$

247,147

$

687,183

$

714,179

Securities

Taxable

8,276

9,589

10,655

28,133

36,438

Tax-exempt

15,001

14,596

13,313

43,421

37,541

Federal funds sold and other

1,429

1,272

4,634

5,258

11,325

Total interest income

249,188

251,738

275,749

763,995

799,483

Interest expense:

Deposits

28,401

33,727

62,531

112,826

175,736

Securities sold under agreements to repurchase

77

94

152

286

439

FHLB advances and other borrowings

14,116

17,260

17,260

50,080

51,338

Total interest expense

42,594

51,081

79,943

163,192

227,513

Net interest income

206,594

200,657

195,806

600,803

571,970

Provision for credit losses

16,333

68,332

8,260

184,554

22,639

Net interest income after provision for credit losses

190,261

132,325

187,546

416,249

549,331

Noninterest income:

Service charges on deposit accounts

9,854

6,910

10,193

25,796

27,675

Investment services

6,734

5,971

6,270

21,944

17,607

Insurance sales commissions

2,284

2,231

2,252

7,755

7,327

Gains on mortgage loans sold, net

19,453

19,619

7,402

47,655

18,291

Investment gains (losses) on sales, net

651

(128

)

417

986

(6,009

)

Trust fees

3,986

3,958

3,593

12,114

10,349

Income from equity method investment

26,445

17,208

32,248

59,245

77,799

Other noninterest income

21,658

17,185

20,244

58,901

51,325

Total noninterest income

91,065

72,954

82,619

234,396

204,364

Noninterest expense:

Salaries and employee benefits

90,103

73,887

85,919

244,470

231,915

Equipment and occupancy

21,622

22,026

20,348

64,626

63,523

Other real estate, net

1,795

2,888

655

7,098

3,424

Marketing and other business development

2,321

2,142

2,723

7,714

8,953

Postage and supplies

1,761

2,070

1,766

5,821

5,737

Amortization of intangibles

2,417

2,479

2,430

7,416

7,012

Other noninterest expense

24,258

26,113

19,100

76,086

54,114

Total noninterest expense

144,277

131,605

132,941

413,231

374,678

Income before income taxes

137,049

73,674

137,224

237,414

379,017

Income tax expense

26,404

11,230

26,703

35,969

74,215

Net income

110,645

62,444

110,521

201,445

304,802

Preferred stock dividends

(3,798

)

-

-

(3,798

)

-

Net income available to common shareholders

$

106,847

$

62,444

$

110,521

$

197,647

$

304,802

Per share information:

Basic net income per common share

$

1.42

$

0.83

$

1.45

$

2.62

$

3.99

Diluted net income per common share

$

1.42

$

0.83

$

1.44

$

2.62

$

3.97

Weighted average common shares outstanding:

Basic

75,240,664

75,210,869

76,301,010

75,417,663

76,480,757

Diluted

75,360,033

75,323,259

76,556,309

75,544,677

76,761,167

This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(dollars inthousands,except for Three months ended Nine months endedper sharedata)

September 30, June 30, September September 30, September 30, 30, 2020 2020 2020 2019 2019

Interest income:

Loans,including $ 224,482 $ 226,281 $ 247,147 $ 687,183 $ 714,179 fees

Securities

Taxable 8,276 9,589 10,655 28,133 36,438

Tax-exempt 15,001 14,596 13,313 43,421 37,541

Federalfunds sold 1,429 1,272 4,634 5,258 11,325 and other

Totalinterest 249,188 251,738 275,749 763,995 799,483 income

Interest expense:

Deposits 28,401 33,727 62,531 112,826 175,736

Securitiessold underagreements 77 94 152 286 439 torepurchase

FHLBadvances and 14,116 17,260 17,260 50,080 51,338 otherborrowings

Totalinterest 42,594 51,081 79,943 163,192 227,513 expense

Net interest 206,594 200,657 195,806 600,803 571,970 income

Provisionfor credit 16,333 68,332 8,260 184,554 22,639 losses

Net interestincome afterprovision 190,261 132,325 187,546 416,249 549,331 for creditlosses

Noninterest income:

Servicecharges on 9,854 6,910 10,193 25,796 27,675 depositaccounts

Investment 6,734 5,971 6,270 21,944 17,607 services

Insurancesales 2,284 2,231 2,252 7,755 7,327 commissions

Gains onmortgage 19,453 19,619 7,402 47,655 18,291 loans sold,net

Investmentgains 651 (128 ) 417 986 (6,009 ) (losses) onsales, net

Trust fees 3,986 3,958 3,593 12,114 10,349

Income fromequity 26,445 17,208 32,248 59,245 77,799 methodinvestment

Othernoninterest 21,658 17,185 20,244 58,901 51,325 income

Totalnoninterest 91,065 72,954 82,619 234,396 204,364 income

Noninterest expense:

Salaries andemployee 90,103 73,887 85,919 244,470 231,915 benefits

Equipmentand 21,622 22,026 20,348 64,626 63,523 occupancy

Other real 1,795 2,888 655 7,098 3,424 estate, net

Marketingand other 2,321 2,142 2,723 7,714 8,953 businessdevelopment

Postage and 1,761 2,070 1,766 5,821 5,737 supplies

Amortizationof 2,417 2,479 2,430 7,416 7,012 intangibles

Othernoninterest 24,258 26,113 19,100 76,086 54,114 expense

Totalnoninterest 144,277 131,605 132,941 413,231 374,678 expense

Incomebefore 137,049 73,674 137,224 237,414 379,017 income taxes

Income tax 26,404 11,230 26,703 35,969 74,215 expense

Net income 110,645 62,444 110,521 201,445 304,802

Preferredstock (3,798 ) - - (3,798 ) - dividends

Net incomeavailable to $ 106,847 $ 62,444 $ 110,521 $ 197,647 $ 304,802 commonshareholders

Per share information:

Basic netincome per $ 1.42 $ 0.83 $ 1.45 $ 2.62 $ 3.99 common share

Diluted netincome per $ 1.42 $ 0.83 $ 1.44 $ 2.62 $ 3.97 common share

Weightedaveragecommon sharesoutstanding:

Basic 75,240,664 75,210,869 76,301,010 75,417,663 76,480,757

Diluted 75,360,033 75,323,259 76,556,309 75,544,677 76,761,167

This information is preliminary and based on company data available at the timeof the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

(dollars in thousands)

September

June

March

December

September

June

2020

2020

2020

2019

2019

2019

Balance sheet data, at quarter end:

Commercial and industrial loans

$

8,395,963

8,516,333

6,752,317

6,290,296

6,002,285

5,795,107

Commercial real estate - owner occupied

2,748,075

2,708,306

2,650,170

2,669,766

2,595,837

2,624,160

Commercial real estate - investment

4,648,457

4,822,537

4,520,234

4,418,658

4,443,687

4,252,098

Commercial real estate - multifamily and other

571,995

561,481

550,338

620,794

669,721

709,135

Consumer real estate - mortgage loans

3,041,019

3,042,604

3,106,465

3,068,625

3,025,502

2,949,755

Construction and land development loans

2,728,439

2,574,494

2,520,937

2,430,483

2,253,303

2,117,969

Consumer and other

343,461

294,545

296,392

289,254

355,307

366,094

Total loans

22,477,409

22,520,300

20,396,853

19,787,876

19,345,642

18,814,318

Allowance for credit losses

(288,645

)

(285,372

)

(222,465

)

(94,777

)

(93,647

)

(90,253

)

Securities

4,503,072

4,358,313

4,089,821

3,728,991

3,583,119

3,447,834

Total assets

33,824,931

33,342,112

29,264,180

27,805,496

27,547,834

26,540,355

Noninterest-bearing deposits

7,050,670

6,892,864

4,963,415

4,795,476

4,702,155

4,493,419

Total deposits

26,543,956

25,521,829

21,333,171

20,181,028

20,000,677

19,449,383

Securities sold under agreements to repurchase

127,059

194,553

186,548

126,354

95,402

154,169

FHLB advances

1,287,738

1,787,551

2,317,520

2,062,534

2,052,548

1,960,062

Subordinated debt and other borrowings

670,273

717,043

669,658

749,080

750,488

464,144

Total stockholders' equity

4,787,308

4,695,647

4,385,128

4,355,748

4,294,630

4,176,361

Balance sheet data, quarterly averages:

Total loans

$

22,493,192

22,257,168

20,009,288

19,599,620

19,216,835

18,611,164

Securities

4,420,280

4,194,811

3,814,543

3,662,829

3,507,363

3,412,475

Federal funds sold and other

3,279,248

2,618,832

807,796

717,927

802,326

530,556

Total earning assets

30,192,720

29,070,811

24,631,627

23,980,376

23,526,524

22,554,195

Total assets

33,838,716

32,785,391

28,237,642

27,604,774

27,134,163

25,915,971

Noninterest-bearing deposits

6,989,439

6,432,010

4,759,729

4,834,694

4,574,821

4,399,766

Total deposits

26,352,823

24,807,032

20,679,455

20,078,594

19,778,007

18,864,859

Securities sold under agreements to repurchase

147,211

191,084

141,192

109,127

134,197

117,261

FHLB advances

1,515,879

2,213,769

2,029,888

1,992,213

2,136,928

2,164,341

Subordinated debt and other borrowings

715,138

706,657

673,415

753,244

533,194

469,498

Total stockholders' equity

4,765,864

4,499,438

4,417,155

4,343,246

4,265,006

4,117,754

Statement of operations data, for the three months ended:

Interest income

$

249,188

251,738

263,069

268,453

275,749

265,851

Interest expense

42,594

51,081

69,517

74,281

79,943

76,933

Net interest income

206,594

200,657

193,552

194,172

195,806

188,918

Provision for credit losses

16,333

68,332

99,889

4,644

8,260

7,195

Net interest income after provision for credit losses

190,261

132,325

93,663

189,528

187,546

181,723

Noninterest income

91,065

72,954

70,377

59,462

82,619

70,682

Noninterest expense

144,277

131,605

137,349

130,470

132,941

127,686

Income before taxes

137,049

73,674

26,691

118,520

137,224

124,719

Income tax (benefit) expense

26,404

11,230

(1,665

)

22,441

26,703

24,398

Net income

110,645

62,444

28,356

96,079

110,521

100,321

Preferred stock dividends

(3,798

)

-

-

-

-

-

Net income available to common shareholders

$

106,847

62,444

28,356

96,079

110,521

100,321

Profitability and other ratios:

Return on avg. assets (1)

1.26

%

0.77

%

0.40

%

1.38

%

1.62

%

1.55

%

Return on avg. equity (1)

8.92

%

5.58

%

2.58

%

8.78

%

10.28

%

9.77

%

Return on avg. common equity (1)

9.35

%

5.66

%

2.58

%

8.78

%

10.28

%

9.77

%

Return on avg. tangible common equity (1)

15.85

%

9.77

%

4.48

%

15.41

%

18.28

%

17.74

%

Common stock dividend payout ratio (16)

16.49

%

16.41

%

14.61

%

12.24

%

12.31

%

12.88

%

Net interest margin (2)

2.82

%

2.87

%

3.28

%

3.35

%

3.43

%

3.48

%

Noninterest income to total revenue (3)

30.59

%

26.66

%

26.67

%

23.44

%

29.67

%

27.23

%

Noninterest income to avg. assets (1)

1.07

%

0.89

%

1.00

%

0.85

%

1.21

%

1.09

%

Noninterest exp. to avg. assets (1)

1.70

%

1.61

%

1.96

%

1.88

%

1.94

%

1.98

%

Efficiency ratio (4)

48.47

%

48.10

%

52.04

%

51.44

%

47.75

%

49.19

%

Avg. loans to avg. deposits

85.35

%

89.72

%

96.76

%

97.61

%

97.16

%

98.66

%

Securities to total assets

13.31

%

13.07

%

13.98

%

13.41

%

13.01

%

12.99

%

This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED



(dollars in September June March December September Junethousands) 2020 2020 2020 2019 2019 2019

Balance sheet data, at quarter end:

Commercial and $ 8,395,963 8,516,333 6,752,317 6,290,296 6,002,285 5,795,107 industrial loans

Commercial realestate - owner 2,748,075 2,708,306 2,650,170 2,669,766 2,595,837 2,624,160 occupied

Commercial real 4,648,457 4,822,537 4,520,234 4,418,658 4,443,687 4,252,098 estate - investment

Commercial realestate - 571,995 561,481 550,338 620,794 669,721 709,135 multifamily andother

Consumer realestate - mortgage 3,041,019 3,042,604 3,106,465 3,068,625 3,025,502 2,949,755 loans

Construction andland development 2,728,439 2,574,494 2,520,937 2,430,483 2,253,303 2,117,969 loans

Consumer and other 343,461 294,545 296,392 289,254 355,307 366,094

Total loans 22,477,409 22,520,300 20,396,853 19,787,876 19,345,642 18,814,318

Allowance for (288,645 ) (285,372 ) (222,465 ) (94,777 ) (93,647 ) (90,253 )credit losses

Securities 4,503,072 4,358,313 4,089,821 3,728,991 3,583,119 3,447,834

Total assets 33,824,931 33,342,112 29,264,180 27,805,496 27,547,834 26,540,355

Noninterest-bearing 7,050,670 6,892,864 4,963,415 4,795,476 4,702,155 4,493,419 deposits

Total deposits 26,543,956 25,521,829 21,333,171 20,181,028 20,000,677 19,449,383

Securities soldunder agreements to 127,059 194,553 186,548 126,354 95,402 154,169 repurchase

FHLB advances 1,287,738 1,787,551 2,317,520 2,062,534 2,052,548 1,960,062

Subordinated debtand other 670,273 717,043 669,658 749,080 750,488 464,144 borrowings

Total stockholders' 4,787,308 4,695,647 4,385,128 4,355,748 4,294,630 4,176,361 equity

Balance sheet data, quarterly averages:

Total loans $ 22,493,192 22,257,168 20,009,288 19,599,620 19,216,835 18,611,164

Securities 4,420,280 4,194,811 3,814,543 3,662,829 3,507,363 3,412,475

Federal funds sold 3,279,248 2,618,832 807,796 717,927 802,326 530,556 and other

Total earning 30,192,720 29,070,811 24,631,627 23,980,376 23,526,524 22,554,195 assets

Total assets 33,838,716 32,785,391 28,237,642 27,604,774 27,134,163 25,915,971

Noninterest-bearing 6,989,439 6,432,010 4,759,729 4,834,694 4,574,821 4,399,766 deposits

Total deposits 26,352,823 24,807,032 20,679,455 20,078,594 19,778,007 18,864,859

Securities soldunder agreements to 147,211 191,084 141,192 109,127 134,197 117,261 repurchase

FHLB advances 1,515,879 2,213,769 2,029,888 1,992,213 2,136,928 2,164,341

Subordinated debtand other 715,138 706,657 673,415 753,244 533,194 469,498 borrowings

Total stockholders' 4,765,864 4,499,438 4,417,155 4,343,246 4,265,006 4,117,754 equity

Statement of operations data, for the three months ended:

Interest income $ 249,188 251,738 263,069 268,453 275,749 265,851

Interest expense 42,594 51,081 69,517 74,281 79,943 76,933

Net interest income 206,594 200,657 193,552 194,172 195,806 188,918

Provision for 16,333 68,332 99,889 4,644 8,260 7,195 credit losses

Net interest incomeafter provision for 190,261 132,325 93,663 189,528 187,546 181,723 credit losses

Noninterest income 91,065 72,954 70,377 59,462 82,619 70,682

Noninterest expense 144,277 131,605 137,349 130,470 132,941 127,686

Income before taxes 137,049 73,674 26,691 118,520 137,224 124,719

Income tax 26,404 11,230 (1,665 ) 22,441 26,703 24,398 (benefit) expense

Net income 110,645 62,444 28,356 96,079 110,521 100,321

Preferred stock (3,798 ) - - - - - dividends

Net incomeavailable to common $ 106,847 62,444 28,356 96,079 110,521 100,321 shareholders

Profitability and other ratios:

Return on avg. 1.26 % 0.77 % 0.40 % 1.38 % 1.62 % 1.55 %assets ^(1)

Return on avg. 8.92 % 5.58 % 2.58 % 8.78 % 10.28 % 9.77 %equity ^(1)

Return on avg. 9.35 % 5.66 % 2.58 % 8.78 % 10.28 % 9.77 %common equity^ (1)

Return on avg.tangible common 15.85 % 9.77 % 4.48 % 15.41 % 18.28 % 17.74 %equity ^(1)

Common stockdividend payout 16.49 % 16.41 % 14.61 % 12.24 % 12.31 % 12.88 %ratio ^(16)

Net interest margin 2.82 % 2.87 % 3.28 % 3.35 % 3.43 % 3.48 %^ (2)

Noninterest incometo total revenue ^ 30.59 % 26.66 % 26.67 % 23.44 % 29.67 % 27.23 %(3)

Noninterest income 1.07 % 0.89 % 1.00 % 0.85 % 1.21 % 1.09 %to avg. assets ^(1)

Noninterest exp. to 1.70 % 1.61 % 1.96 % 1.88 % 1.94 % 1.98 %avg. assets ^(1)

Efficiency ratio ^ 48.47 % 48.10 % 52.04 % 51.44 % 47.75 % 49.19 %(4)

Avg. loans to avg. 85.35 % 89.72 % 96.76 % 97.61 % 97.16 % 98.66 %deposits

Securities to total 13.31 % 13.07 % 13.98 % 13.41 % 13.01 % 12.99 %assets

This information is preliminary and based on company data available at the timeof the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED

(dollars in thousands)

Three months ended

Three months ended

September 30, 2020

September 30, 2019

Average

Balances

Interest

Rates/Yields

Average

Balances

Interest

Rates/Yields

Interest-earning assets

Loans (1) (2)

$

22,493,192

$

224,482

4.04

%

$

19,216,835

$

247,147

5.21

%

Securities

Taxable

2,226,008

8,276

1.48

%

1,712,265

10,655

2.47

%

Tax-exempt (2)

2,194,272

15,001

3.29

%

1,795,098

13,313

3.51

%

Federal funds sold and other

3,279,248

1,429

0.17

%

802,326

4,634

2.29

%

Total interest-earning assets

30,192,720

$

249,188

3.38

%

23,526,524

$

275,749

4.78

%

Nonearning assets

Intangible assets

1,866,082

1,866,223

Other nonearning assets

1,779,914

1,741,416

Total assets

$

33,838,716

$

27,134,163

Interest-bearing liabilities

Interest-bearing deposits:

Interest checking

4,784,627

3,733

0.31

%

3,237,155

9,517

1.17

%

Savings and money market

10,312,876

8,374

0.32

%

7,614,558

27,303

1.42

%

Time

4,265,881

16,294

1.52

%

4,351,473

25,711

2.34

%

Total interest-bearing deposits

19,363,384

28,401

0.58

%

15,203,186

62,531

1.63

%

Securities sold under agreements to repurchase

147,211

77

0.21

%

134,197

152

0.45

%

Federal Home Loan Bank advances

1,515,879

6,945

1.82

%

2,136,928

11,591

2.15

%

Subordinated debt and other borrowings

715,138

7,171

3.99

%

533,194

5,669

4.22

%

Total interest-bearing liabilities

21,741,612

42,594

0.78

%

18,007,505

79,943

1.76

%

Noninterest-bearing deposits

6,989,439

-

-

4,574,821

-

-

Total deposits and interest-bearing liabilities

28,731,051

$

42,594

0.59

%

22,582,326

$

79,943

1.40

%

Other liabilities

341,801

286,831

Stockholders' equity

4,765,864

4,265,006

Total liabilities and stockholders' equity

$

33,838,716

$

27,134,163

Netinterestincome

$

206,594

$

195,806

Net interest spread (3)

2.60

%

3.02

%

Net interest margin (4)

2.82

%

3.43

%

(1) Average balances of nonperforming loans are included in the above amounts.

(2) Yields computed on tax-exempt instruments on a tax equivalent basis and included $7.3 million of taxable equivalent income for the three months ended Sept. 30, 2020 compared to $7.5 million for the three months ended Sept. 30, 2019. The tax-exempt benefit has been reduced by the projected impact of tax-exempt income that will be disallowed pursuant to IRS Regulations as of and for the then current period presented.

(3) Yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. The net interest spread calculation excludes the impact of demand deposits. Had the impact of demand deposits been included, the net interest spread for the three months ended Sept. 30, 2020 would have been 2.79% compared to a net interest spread of 3.37% for the three months ended Sept. 30, 2019.

(4) Net interest margin is the result of annualized net interest income calculated on a tax equivalent basis divided by average interest-earning assets for the period.

This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED



(dollars in Three months ended Three months endedthousands) September 30, 2020 September 30, 2019

Average Rates/ Average Rates/ Interest Yields Interest Yields Balances Balances

Interest-earning assets

Loans^ (1) (2) $ 22,493,192 $ 224,482 4.04 % $ 19,216,835 $ 247,147 5.21 %

Securities

Taxable 2,226,008 8,276 1.48 % 1,712,265 10,655 2.47 %

Tax-exempt ^(2) 2,194,272 15,001 3.29 % 1,795,098 13,313 3.51 %

Federal funds sold 3,279,248 1,429 0.17 % 802,326 4,634 2.29 %and other

Totalinterest-earning 30,192,720 $ 249,188 3.38 % 23,526,524 $ 275,749 4.78 %assets

Nonearning assets

Intangible assets 1,866,082 1,866,223

Other nonearning 1,779,914 1,741,416 assets

Total assets $ 33,838,716 $ 27,134,163



Interest-bearing liabilities

Interest-bearing deposits:

Interest checking 4,784,627 3,733 0.31 % 3,237,155 9,517 1.17 %

Savings and money 10,312,876 8,374 0.32 % 7,614,558 27,303 1.42 %market

Time 4,265,881 16,294 1.52 % 4,351,473 25,711 2.34 %

Totalinterest-bearing 19,363,384 28,401 0.58 % 15,203,186 62,531 1.63 %deposits

Securities soldunder agreements to 147,211 77 0.21 % 134,197 152 0.45 %repurchase

Federal Home Loan 1,515,879 6,945 1.82 % 2,136,928 11,591 2.15 %Bank advances

Subordinated debtand other 715,138 7,171 3.99 % 533,194 5,669 4.22 %borrowings

Totalinterest-bearing 21,741,612 42,594 0.78 % 18,007,505 79,943 1.76 %liabilities

Noninterest-bearing 6,989,439 - - 4,574,821 - - deposits

Total deposits andinterest-bearing 28,731,051 $ 42,594 0.59 % 22,582,326 $ 79,943 1.40 %liabilities

Other liabilities 341,801 286,831

Stockholders' 4,765,864 4,265,006 equity

Total liabilitiesand stockholders' $ 33,838,716 $ 27,134,163 equity

Net interest income $ 206,594 $ 195,806

Net interest spread 2.60 % 3.02 %^(3)

Net interest margin 2.82 % 3.43 %^(4)



^(1) Average balances of nonperforming loans are included in the above amounts.

^(2) Yields computed on tax-exempt instruments on a tax equivalent basis andincluded $7.3 million of taxable equivalent income for the three months endedSept. 30, 2020 compared to $7.5 million for the three months ended Sept. 30,2019. The tax-exempt benefit has been reduced by the projected impact oftax-exempt income that will be disallowed pursuant to IRS Regulations as of andfor the then current period presented.

^(3) Yields realized on interest-bearing assets less the rates paid oninterest-bearing liabilities. The net interest spread calculation excludes theimpact of demand deposits. Had the impact of demand deposits been included, thenet interest spread for the three months ended Sept. 30, 2020 would have been2.79% compared to a net interest spread of 3.37% for the three months endedSept. 30, 2019.

^(4) Net interest margin is the result of annualized net interest incomecalculated on a tax equivalent basis divided by average interest-earning assetsfor the period.



This information is preliminary and based on company data available at the timeof the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED

(dollars in thousands)

Nine months ended

Nine months ended

September 30, 2020

September 30, 2019

Average

Balances

Interest

Rates/Yields

Average

Balances

Interest

Rates/Yields

Interest-earning assets

Loans (1) (2)

$

21,589,858

$

687,183

4.33

%

$

18,593,509

$

714,179

5.23

%

Securities

Taxable

2,103,023

28,133

1.79

%

1,779,512

36,438

2.74

%

Tax-exempt (2)

2,041,199

43,421

3.41

%

1,628,742

37,541

3.67

%

Federal funds sold and other

2,239,102

5,258

0.31

%

602,148

11,325

2.51

%

Total interest-earning assets

27,973,182

$

763,995

3.75

%

22,603,911

$

799,483

4.85

%

Nonearning assets

Intangible assets

1,868,118

1,856,324

Other nonearning assets

1,787,377

1,580,762

Total assets

$

31,628,677

$

26,040,997

Interest-bearing liabilities

Interest-bearing deposits:

Interest checking

4,391,319

16,456

0.50

%

3,173,228

28,145

1.19

%

Savings and money market

9,201,302

37,713

0.55

%

7,503,407

80,587

1.44

%

Time

4,298,814

58,657

1.82

%

3,937,486

67,004

2.28

%

Total interest-bearing deposits

17,891,435

112,826

0.84

%

14,614,121

175,736

1.61

%

Securities sold under agreements to repurchase

159,783

286

0.24

%

120,346

439

0.49

%

Federal Home Loan Bank advances

1,918,371

26,854

1.87

%

2,076,647

33,107

2.13

%

Subordinated debt and other borrowings

698,464

23,226

4.44

%

491,384

18,231

4.96

%

Total interest-bearing liabilities

20,668,053

163,192

1.05

%

17,302,498

227,513

1.76

%

Noninterest-bearing deposits

6,063,783

-

-

4,391,400

-

-

Total deposits and interest-bearing liabilities

26,731,836

$

163,192

0.82

%

21,693,898

$

227,513

1.40

%

Other liabilities

335,274

212,813

Stockholders' equity

4,561,567

4,134,286

Total liabilities and stockholders' equity

$

31,628,677

$

26,040,997

Netinterestincome

$

600,803

$

571,970

Net interest spread (3)

2.70

%

3.09

%

Net interest margin (4)

2.97

%

3.51

%

(1) Average balances of nonperforming loans are included in the above amounts.

(2) Yields computed on tax-exempt instruments on a tax equivalent basis and included $21.3 million of taxable equivalent income for the nine months ended Sept. 30, 2020 compared to $20.9 million for the nine months ended Sept. 30, 2019. The tax-exempt benefit has been reduced by the projected impact of tax-exempt income that will be disallowed pursuant to IRS Regulations as of and for the then current period presented.

(3) Yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. The net interest spread calculation excludes the impact of demand deposits. Had the impact of demand deposits been included, the net interest spread for the nine months ended Sept. 30, 2020 would have been 2.93% compared to a net interest spread of 3.45% for the nine months ended Sept. 30, 2019.

(4) Net interest margin is the result of annualized net interest income calculated on a tax equivalent basis divided by average interest-earning assets for the period.

This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED



(dollars in Nine months ended Nine months endedthousands) September 30, 2020 September 30, 2019

Average Rates/ Average Rates/ Interest Yields Interest Yields Balances Balances

Interest-earning assets

Loans^ (1) (2) $ 21,589,858 $ 687,183 4.33 % $ 18,593,509 $ 714,179 5.23 %

Securities

Taxable 2,103,023 28,133 1.79 % 1,779,512 36,438 2.74 %

Tax-exempt ^(2) 2,041,199 43,421 3.41 % 1,628,742 37,541 3.67 %

Federal funds sold 2,239,102 5,258 0.31 % 602,148 11,325 2.51 %and other

Totalinterest-earning 27,973,182 $ 763,995 3.75 % 22,603,911 $ 799,483 4.85 %assets

Nonearning assets

Intangible assets 1,868,118 1,856,324

Other nonearning 1,787,377 1,580,762 assets

Total assets $ 31,628,677 $ 26,040,997



Interest-bearing liabilities

Interest-bearing deposits:

Interest checking 4,391,319 16,456 0.50 % 3,173,228 28,145 1.19 %

Savings and money 9,201,302 37,713 0.55 % 7,503,407 80,587 1.44 %market

Time 4,298,814 58,657 1.82 % 3,937,486 67,004 2.28 %

Totalinterest-bearing 17,891,435 112,826 0.84 % 14,614,121 175,736 1.61 %deposits

Securities soldunder agreements to 159,783 286 0.24 % 120,346 439 0.49 %repurchase

Federal Home Loan 1,918,371 26,854 1.87 % 2,076,647 33,107 2.13 %Bank advances

Subordinated debtand other 698,464 23,226 4.44 % 491,384 18,231 4.96 %borrowings

Totalinterest-bearing 20,668,053 163,192 1.05 % 17,302,498 227,513 1.76 %liabilities

Noninterest-bearing 6,063,783 - - 4,391,400 - - deposits

Total deposits andinterest-bearing 26,731,836 $ 163,192 0.82 % 21,693,898 $ 227,513 1.40 %liabilities

Other liabilities 335,274 212,813

Stockholders' 4,561,567 4,134,286 equity

Total liabilitiesand stockholders' $ 31,628,677 $ 26,040,997 equity

Net interest income $ 600,803 $ 571,970

Net interest spread 2.70 % 3.09 %^(3)

Net interest margin 2.97 % 3.51 %^(4)



^(1) Average balances of nonperforming loans are included in the above amounts.

^(2) Yields computed on tax-exempt instruments on a tax equivalent basis andincluded $21.3 million of taxable equivalent income for the nine months endedSept. 30, 2020 compared to $20.9 million for the nine months ended Sept. 30,2019. The tax-exempt benefit has been reduced by the projected impact oftax-exempt income that will be disallowed pursuant to IRS Regulations as of andfor the then current period presented.

^(3) Yields realized on interest-bearing assets less the rates paid oninterest-bearing liabilities. The net interest spread calculation excludes theimpact of demand deposits. Had the impact of demand deposits been included, thenet interest spread for the nine months ended Sept. 30, 2020 would have been2.93% compared to a net interest spread of 3.45% for the nine months endedSept. 30, 2019.

^(4) Net interest margin is the result of annualized net interest incomecalculated on a tax equivalent basis divided by average interest-earning assetsfor the period.



This information is preliminary and based on company data available at the timeof the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

(dollars in thousands)

September

June

March

December

September

June

2020

2020

2020

2019

2019

2019

Asset quality information and ratios:

Nonperforming assets:

Nonaccrual loans

$

71,390

62,562

70,970

61,605

73,263

76,077

Other real estate (ORE) and other nonperforming assets (NPAs)

19,445

22,105

27,182

29,487

30,049

26,658

Total nonperforming assets

$

90,835

$

84,667

$

98,152

$

91,092

$

103,312

$

102,735

Past due loans over 90 days and still accruing interest

$

1,313

$

1,982

$

1,990

$

1,615

$

2,450

$

2,733

Accruing troubled debt restructurings (5)

$

2,588

$

3,274

$

3,869

$

4,850

$

5,803

$

7,412

Accruing purchase credit impaired loans

$

14,346

$

14,616

$

13,984

$

13,249

$

12,887

$

12,632

Net loan charge-offs

$

13,057

$

5,384

$

10,155

$

3,515

$

4,866

$

4,136

Allowance for credit losses to nonaccrual loans

404.3

%

456.1

%

313.5

%

153.8

%

127.8

%

118.6

%

As a percentage of total loans:

Past due accruing loans over 30 days

0.11

%

0.09

%

0.17

%

0.18

%

0.24

%

0.21

%

Potential problem loans (6)

0.96

%

1.12

%

1.22

%

1.39

%

1.31

%

1.21

%

Allowance for credit losses (20)

1.28

%

1.27

%

1.09

%

0.48

%

0.48

%

0.48

%

Nonperforming assets to total loans, ORE and other NPAs

0.40

%

0.38

%

0.48

%

0.46

%

0.53

%

0.55

%

Classified asset ratio (Pinnacle Bank) (8)

9.9

%

11.2

%

12.0

%

13.4

%

13.5

%

13.9

%

Annualized net loan charge-offs to avg. loans (7)

0.23

%

0.10

%

0.20

%

0.07

%

0.10

%

0.09

%

Wtd. avg. commercial loan internal risk ratings (6)

45.2

45.1

45.0

44.9

45.3

44.9

44.4

4.5

4.4

4.4

4.5

Interest rates and yields:

Loans

4.04

%

4.16

%

4.84

%

5.00

%

5.21

%

5.22

%

Securities

2.38

%

2.59

%

2.82

%

2.85

%

3.00

%

3.20

%

Total earning assets

3.38

%

3.58

%

4.41

%

4.58

%

4.78

%

4.85

%

Total deposits, including non-interest bearing

0.43

%

0.55

%

0.99

%

1.10

%

1.25

%

1.25

%

Securities sold under agreements to repurchase

0.21

%

0.20

%

0.33

%

0.48

%

0.45

%

0.49

%

FHLB advances

1.82

%

1.73

%

2.06

%

2.10

%

2.15

%

2.14

%

Subordinated debt and other borrowings

3.99

%

4.42

%

4.96

%

4.04

%

4.22

%

5.34

%

Total deposits and interest-bearing liabilities

0.59

%

0.74

%

1.19

%

1.29

%

1.40

%

1.43

%

Capital and other ratios (8):

Pinnacle Financial ratios:

Stockholders' equity to total assets

14.2

%

14.1

%

15.0

%

15.7

%

15.6

%

15.7

%

Common equity Tier one

9.9

%

9.6

%

9.4

%

9.7

%

9.6

%

9.5

%

Tier one risk-based

10.7

%

10.4

%

9.4

%

9.7

%

9.6

%

9.5

%

Total risk-based

14.2

%

14.0

%

12.8

%

13.2

%

13.2

%

12.0

%

Leverage

8.5

%

8.4

%

8.8

%

9.1

%

8.9

%

9.1

%

Tangible common equity to tangible assets

8.5

%

8.3

%

9.2

%

9.6

%

9.4

%

9.4

%

Pinnacle Bank ratios:

Common equity Tier one

11.3

%

11.0

%

11.0

%

11.2

%

11.1

%

10.3

%

Tier one risk-based

11.3

%

11.0

%

11.0

%

11.2

%

11.1

%

10.3

%

Total risk-based

12.6

%

12.4

%

12.2

%

12.2

%

12.1

%

11.3

%

Leverage

8.9

%

8.9

%

10.3

%

10.5

%

10.4

%

9.8

%

Construction and land development loans as a percentage of total capital (19)

86.7

%

83.6

%

84.2

%

83.6

%

79.9

%

82.6

%

Non-owner occupied commercial real estate and multi-family as a percentage of total capital (19)

268.8

%

275.0

%

264.1

%

268.3

%

272.8

%

288.9

%

This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED



(dollars in September June March December September Junethousands) 2020 2020 2020 2019 2019 2019

Asset qualityinformation and ratios:

Nonperforming assets:

Nonaccrual loans $ 71,390 62,562 70,970 61,605 73,263 76,077

Other realestate (ORE) andother 19,445 22,105 27,182 29,487 30,049 26,658 nonperformingassets (NPAs)

Totalnonperforming $ 90,835 $ 84,667 $ 98,152 $ 91,092 $ 103,312 $ 102,735 assets

Past due loansover 90 days and $ 1,313 $ 1,982 $ 1,990 $ 1,615 $ 2,450 $ 2,733 still accruinginterest

Accruingtroubled debt $ 2,588 $ 3,274 $ 3,869 $ 4,850 $ 5,803 $ 7,412 restructurings ^(5)

Accruingpurchase credit $ 14,346 $ 14,616 $ 13,984 $ 13,249 $ 12,887 $ 12,632 impaired loans

Net loan $ 13,057 $ 5,384 $ 10,155 $ 3,515 $ 4,866 $ 4,136 charge-offs

Allowance forcredit losses to 404.3 % 456.1 % 313.5 % 153.8 % 127.8 % 118.6 %nonaccrual loans

As a percentage of total loans:

Past dueaccruing loans 0.11 % 0.09 % 0.17 % 0.18 % 0.24 % 0.21 %over 30 days

Potentialproblem loans ^ 0.96 % 1.12 % 1.22 % 1.39 % 1.31 % 1.21 %(6)

Allowance forcredit losses ^ 1.28 % 1.27 % 1.09 % 0.48 % 0.48 % 0.48 %(20)

Nonperformingassets to total 0.40 % 0.38 % 0.48 % 0.46 % 0.53 % 0.55 %loans, ORE andother NPAs

Classified assetratio (Pinnacle 9.9 % 11.2 % 12.0 % 13.4 % 13.5 % 13.9 %Bank) ^(8)

Annualized netloan charge-offs 0.23 % 0.10 % 0.20 % 0.07 % 0.10 % 0.09 %to avg. loans ^(7)

Wtd. avg.commercial loan 45.2 45.1 45.0 44.9 45.3 44.9internal riskratings ^(6)

44.4 4.5 4.4 4.4 4.5

Interest rates and yields:

Loans 4.04 % 4.16 % 4.84 % 5.00 % 5.21 % 5.22 %

Securities 2.38 % 2.59 % 2.82 % 2.85 % 3.00 % 3.20 %

Total earning 3.38 % 3.58 % 4.41 % 4.58 % 4.78 % 4.85 %assets

Total deposits,including 0.43 % 0.55 % 0.99 % 1.10 % 1.25 % 1.25 %non-interestbearing

Securities soldunder agreements 0.21 % 0.20 % 0.33 % 0.48 % 0.45 % 0.49 %to repurchase

FHLB advances 1.82 % 1.73 % 2.06 % 2.10 % 2.15 % 2.14 %

Subordinateddebt and other 3.99 % 4.42 % 4.96 % 4.04 % 4.22 % 5.34 %borrowings

Total depositsand 0.59 % 0.74 % 1.19 % 1.29 % 1.40 % 1.43 %interest-bearingliabilities



Capital andother ratios ^ (8):

PinnacleFinancial ratios:

Stockholders'equity to total 14.2 % 14.1 % 15.0 % 15.7 % 15.6 % 15.7 %assets

Common equity 9.9 % 9.6 % 9.4 % 9.7 % 9.6 % 9.5 %Tier one

Tier one 10.7 % 10.4 % 9.4 % 9.7 % 9.6 % 9.5 %risk-based

Total risk-based 14.2 % 14.0 % 12.8 % 13.2 % 13.2 % 12.0 %

Leverage 8.5 % 8.4 % 8.8 % 9.1 % 8.9 % 9.1 %

Tangible commonequity to 8.5 % 8.3 % 9.2 % 9.6 % 9.4 % 9.4 %tangible assets

Pinnacle Bank ratios:

Common equity 11.3 % 11.0 % 11.0 % 11.2 % 11.1 % 10.3 %Tier one

Tier one 11.3 % 11.0 % 11.0 % 11.2 % 11.1 % 10.3 %risk-based

Total risk-based 12.6 % 12.4 % 12.2 % 12.2 % 12.1 % 11.3 %

Leverage 8.9 % 8.9 % 10.3 % 10.5 % 10.4 % 9.8 %

Construction andland developmentloans as a 86.7 % 83.6 % 84.2 % 83.6 % 79.9 % 82.6 %percentage oftotal capital ^(19)

Non-owneroccupiedcommercial realestate and 268.8 % 275.0 % 264.1 % 268.3 % 272.8 % 288.9 %multi-family asa percentage oftotal capital ^(19)



This information is preliminary and based on company data available at the timeof the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

(dollars in thousands, except per share data)

September

June

March

December

September

June

2020

2020

2020

2019

2019

2019

Per share data:

Earnings per common share - basic

$

1.42

0.83

0.37

1.26

1.45

1.31

Earnings per common share - basic, excluding non-GAAP adjustments

$

1.45

0.89

0.39

1.27

1.45

1.43

Earnings per common share - diluted

$

1.42

0.83

0.37

1.26

1.44

1.31

Earnings per common share - diluted, excluding non-GAAP adjustments

$

1.45

0.89

0.39

1.27

1.45

1.42

Common dividends per share

$

0.16

0.16

0.16

0.16

0.16

0.16

Book value per common share at quarter end (9)

$

60.26

59.05

57.85

56.89

55.97

54.29

Tangible book value per common share at quarter end (9)

$

35.68

34.43

33.20

32.45

31.60

30.26

Revenue per diluted common share

$

3.95

3.63

3.47

3.32

3.64

3.39

Revenue per diluted common share, excluding non-GAAP adjustments

$

3.94

3.63

3.47

3.32

3.63

3.47

Investor information:

Closing sales price of common stock on last trading day of quarter

$

35.59

41.99

37.54

64.00

56.75

57.48

High closing sales price of common stock during quarter

$

44.47

48.98

64.03

64.80

61.14

59.23

Low closing sales price of common stock during quarter

$

33.28

33.24

31.98

54.58

50.78

52.95

Closing sales price of depositary shares on last trading day of quarter

$

26.49

25.98

-

-

-

-

High closing sales price of depositary shares during quarter

$

26.82

26.05

-

-

-

-

Low closing sales price of depositary shares during quarter

$

25.51

25.19

-

-

-

-

Other information:

Residential mortgage loan sales:

Gross loans sold

$

511,969

550,704

286,703

322,228

302,473

291,813

Gross fees (10)

$

23,557

16,381

9,490

9,953

9,392

8,485

Gross fees as a percentage of loans originated

4.60

%

2.97

%

3.31

%

3.09

%

3.11

%

2.91

%

Net gain on residential mortgage loans sold

$

19,453

19,619

8,583

6,044

7,402

6,011

Investment gains (losses) on sales of securities, net (15)

$

651

(128)

463

68

417

(4,466)

Brokerage account assets, at quarter end (11)

$

4,866,726

4,499,856

4,000,643

4,636,441

4,355,429

4,287,985

Trust account managed assets, at quarter end

$

2,978,035

2,908,131

2,714,582

2,942,811

2,530,356

2,425,791

Core deposits (12)

$

22,003,989

21,391,794

18,604,262

17,617,479

17,103,470

16,503,686

Core deposits to total funding (12)

76.9

%

75.8

%

75.9

%

76.2

%

74.7

%

74.9

%

Risk-weighted assets

$

25,189,944

24,937,535

24,600,490

23,911,064

23,370,342

22,706,512

Number of offices

114

113

111

111

114

114

Total core deposits per office

$

193,017

189,308

167,606

158,716

150,030

144,769

Total assets per full-time equivalent employee

$

13,027

12,936

11,422

11,180

11,217

11,241

Annualized revenues per full-time equivalent employee

$

456.1

426.9

414.3

404.6

449.8

441.0

Annualized expenses per full-time equivalent employee

$

221.1

205.4

215.6

208.1

214.8

216.9

Number of employees (full-time equivalent)

2,596.5

2,577.5

2,562.0

2,487.0

2,456.0

2,361.0

Associate retention rate (13)

94.4

%

94.5

%

93.5

%

92.8

%

93.2

%

93.0

%

This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED



(dollars in September June March December September Junethousands,except pershare data) 2020 2020 2020 2019 2019 2019



Per share data:

Earnings percommon share $ 1.42 0.83 0.37 1.26 1.45 1.31 - basic

Earnings percommon share- basic, $ 1.45 0.89 0.39 1.27 1.45 1.43 excludingnon-GAAPadjustments

Earnings percommon share $ 1.42 0.83 0.37 1.26 1.44 1.31 - diluted

Earnings percommon share- diluted, $ 1.45 0.89 0.39 1.27 1.45 1.42 excludingnon-GAAPadjustments

Commondividends per $ 0.16 0.16 0.16 0.16 0.16 0.16 share

Book valueper commonshare at $ 60.26 59.05 57.85 56.89 55.97 54.29 quarter end ^(9)

Tangible bookvalue percommon share $ 35.68 34.43 33.20 32.45 31.60 30.26 at quarterend ^(9)

Revenue perdiluted $ 3.95 3.63 3.47 3.32 3.64 3.39 common share

Revenue perdilutedcommon share, $ 3.94 3.63 3.47 3.32 3.63 3.47 excludingnon-GAAPadjustments



Investor information:

Closing salesprice ofcommon stock $ 35.59 41.99 37.54 64.00 56.75 57.48 on lasttrading dayof quarter

High closingsales priceof common $ 44.47 48.98 64.03 64.80 61.14 59.23 stock duringquarter

Low closingsales priceof common $ 33.28 33.24 31.98 54.58 50.78 52.95 stock duringquarter



Closing salesprice ofdepositaryshares on $ 26.49 25.98 - - - - last tradingday ofquarter

High closingsales priceof depositary $ 26.82 26.05 - - - - shares duringquarter

Low closingsales priceof depositary $ 25.51 25.19 - - - - shares duringquarter



Other information:

Residentialmortgage loan sales:

Gross loans $ 511,969 550,704 286,703 322,228 302,473 291,813 sold

Gross fees ^ $ 23,557 16,381 9,490 9,953 9,392 8,485 (10)

Gross fees asa percentage 4.60 % 2.97 % 3.31 % 3.09 % 3.11 % 2.91 %of loansoriginated

Net gain onresidential $ 19,453 19,619 8,583 6,044 7,402 6,011 mortgageloans sold

Investmentgains(losses) on $ 651 (128) 463 68 417 (4,466) sales ofsecurities,net ^(15)

Brokerageaccountassets, at $ 4,866,726 4,499,856 4,000,643 4,636,441 4,355,429 4,287,985 quarter end ^(11)

Trust accountmanaged $ 2,978,035 2,908,131 2,714,582 2,942,811 2,530,356 2,425,791 assets, atquarter end

Core deposits $ 22,003,989 21,391,794 18,604,262 17,617,479 17,103,470 16,503,686 ^(12)

Core depositsto total 76.9 % 75.8 % 75.9 % 76.2 % 74.7 % 74.9 %funding ^(12)

Risk-weighted $ 25,189,944 24,937,535 24,600,490 23,911,064 23,370,342 22,706,512 assets

Number of 114 113 111 111 114 114 offices

Total coredeposits per $ 193,017 189,308 167,606 158,716 150,030 144,769 office

Total assetsper full-time $ 13,027 12,936 11,422 11,180 11,217 11,241 equivalentemployee

Annualizedrevenues perfull-time $ 456.1 426.9 414.3 404.6 449.8 441.0 equivalentemployee

Annualizedexpenses perfull-time $ 221.1 205.4 215.6 208.1 214.8 216.9 equivalentemployee

Number ofemployees 2,596.5 2,577.5 2,562.0 2,487.0 2,456.0 2,361.0 (full-timeequivalent)

Associateretention 94.4 % 94.5 % 93.5 % 92.8 % 93.2 % 93.0 %rate ^(13)



This information is preliminary and based on company data available at the timeof the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

Three months ended

Nine months ended

(dollars in thousands, except per share data)

September

June

September

September

September

2020

2020

2019

2020

2019

Net interest income

$

206,594

200,657

195,806

600,803

571,970

Noninterest income

91,065

72,954

82,619

234,396

204,364

Total revenues

297,659

273,611

278,425

835,199

776,334

Less: Investment (gains) losses on sales of securities, net

(651

)

128

(417

)

(986

)

6,009

Loss on sale of non-prime automobile portfolio

-

-

-

-

1,536

Total revenues excluding the impact of adjustments noted above

$

297,008

273,739

278,008

834,213

783,879

Noninterest expense

$

144,277

131,605

132,941

413,231

374,678

Less: Other real estate (ORE) expense

1,795

2,888

655

7,098

3,424

FHLB restructuring charges

1,991

2,870

-

4,861

-

Branch rationalization charges

-

-

-

-

3,189

Noninterest expense excluding the impact of adjustments noted above

$

140,491

125,847

132,286

401,272

368,065

Pre-tax income

$

137,049

73,674

137,224

237,414

379,017

Provision for credit losses

16,333

68,332

8,260

184,554

22,639

Pre-tax pre-provision net revenue

153,382

142,006

145,484

421,968

401,656

Adjustments noted above

3,135

5,886

238

10,973

14,158

Adjusted pre-tax pre-provision net revenue(14)

$

156,517

147,892

145,722

432,941

415,814

Noninterest income

$

91,065

72,954

82,619

234,396

204,364

Less: Adjustments as noted above

(651

)

128

(417

)

(986

)

7,545

Noninterest income excluding the impact of adjustments noted above

$

90,414

73,082

82,202

233,410

211,909

Efficiency ratio (4)

48.47

%

48.10

%

47.75

%

49.48

%

48.26

%

Adjustments as noted above

(1.17

)%

(2.13

)%

(0.17

)%

(1.38

)%

(1.31

)%

Efficiency ratio (excluding adjustments noted above)

47.30

%

45.97

%

47.58

%

48.10

%

46.95

%

Total average assets

$

33,838,716

32,785,391

27,134,163

31,628,677

26,040,997

Noninterest income to average assets (1)

1.07

%

0.89

%

1.21

%

0.99

%

1.05

%

Adjustments as noted above

(0.01

)%

0.01

%

(0.01

)%

-

%

0.04

%

Noninterest income (excluding adjustments noted above) to average assets (1)

1.06

%

0.90

%

1.20

%

0.99

%

1.09

%

Noninterest expense to average assets (1)

1.70

%

1.61

%

1.94

%

1.75

%

1.92

%

Adjustments as noted above

(0.05

)%

(0.07

)%

(0.01

)%

(0.06

)%

(0.03

)%

Noninterest expense (excluding adjustments noted above) to average assets (1)

1.65

%

1.54

%

1.93

%

1.69

%

1.89

%

This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

Three months ended Nine months ended

(dollars in September June September September Septemberthousands,except pershare data) 2020 2020 2019 2020 2019



Net interest $ 206,594 200,657 195,806 600,803 571,970 income



Noninterest 91,065 72,954 82,619 234,396 204,364 income

Total revenues 297,659 273,611 278,425 835,199 776,334

Less:Investment(gains) losses (651 ) 128 (417 ) (986 ) 6,009 on sales ofsecurities, net

Loss on sale ofnon-prime - - - - 1,536 automobileportfolio

Total revenuesexcluding theimpact of $ 297,008 273,739 278,008 834,213 783,879 adjustmentsnoted above



Noninterest $ 144,277 131,605 132,941 413,231 374,678 expense

Less: Otherreal estate 1,795 2,888 655 7,098 3,424 (ORE) expense

FHLBrestructuring 1,991 2,870 - 4,861 - charges

Branchrationalization - - - - 3,189 charges

Noninterestexpenseexcluding the $ 140,491 125,847 132,286 401,272 368,065 impact ofadjustmentsnoted above



Pre-tax income $ 137,049 73,674 137,224 237,414 379,017

Provision for 16,333 68,332 8,260 184,554 22,639 credit losses

Pre-taxpre-provision 153,382 142,006 145,484 421,968 401,656 net revenue

Adjustments 3,135 5,886 238 10,973 14,158 noted above

Adjustedpre-taxpre-provision $ 156,517 147,892 145,722 432,941 415,814 net revenue^(14)





Noninterest $ 91,065 72,954 82,619 234,396 204,364 income

Less:Adjustments as (651 ) 128 (417 ) (986 ) 7,545 noted above

Noninterestincomeexcluding the $ 90,414 73,082 82,202 233,410 211,909 impact ofadjustmentsnoted above



Efficiency 48.47 % 48.10 % 47.75 % 49.48 % 48.26 %ratio ^(4)

Adjustments as (1.17 ) (2.13 ) (0.17 ) (1.38 ) (1.31 )noted above % % % % %

Efficiencyratio(excluding 47.30 % 45.97 % 47.58 % 48.10 % 46.95 %adjustmentsnoted above)



Total average $ 33,838,716 32,785,391 27,134,163 31,628,677 26,040,997 assets



Noninterestincome to 1.07 % 0.89 % 1.21 % 0.99 % 1.05 %average assets^(1)

Adjustments as (0.01 ) 0.01 % (0.01 ) - % 0.04 %noted above % %

Noninterestincome(excludingadjustments 1.06 % 0.90 % 1.20 % 0.99 % 1.09 %noted above) toaverage assets^(1)



Noninterestexpense to 1.70 % 1.61 % 1.94 % 1.75 % 1.92 %average assets^(1)

Adjustments as (0.05 ) (0.07 ) (0.01 ) (0.06 ) (0.03 )noted above % % % % %

Noninterestexpense(excludingadjustments 1.65 % 1.54 % 1.93 % 1.69 % 1.89 %noted above) toaverage assets^(1)



This information is preliminary and based on company data available at the timeof the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

Three months ended

(dollars in thousands, except per share data)

September

June

March

December

September

June

2020

2020

2020

2019

2019

2019

Net income available to common shareholders

$

106,847

62,444

28,356

96,079

110,521

100,321

Investment (gains) losses on sales of securities, net

(651

)

128

(463

)

(68

)

(417

)

4,466

Sale of non-prime automobile portfolio

-

-

-

-

-

1,536

ORE expense

1,795

2,888

2,415

804

655

2,523

Branch rationalization charges

-

-

-

-

-

3,189

FHLB restructuring charges

1,991

2,870

-

-

-

-

Tax effect on adjustments noted above (18)

(819

)

(1,539

)

(510

)

(192

)

(62

)

(3,062

)

Net income available to common shareholders excluding adjustments noted above

$

109,163

66,791

29,798

96,623

110,697

108,973

Basic earnings per common share

$

1.42

0.83

0.37

1.26

1.45

1.31

Adjustment due to investment (gains) losses on sales of securities, net

(0.01

)

-

-

-

(0.01

)

0.06

Adjustment due to sale of non-prime automobile portfolio

-

-

-

-

-

0.02

Adjustment due to ORE expense

0.02

0.04

0.03

0.01

0.01

0.04

Adjustment due to branch consolidation expense

-

-

-

-

-

0.04

Adjustment due to FHLB restructuring charges

0.03

0.04

-

-

-

-

Adjustment due to tax effect on adjustments noted above (18)

(0.01

)

(0.02

)

(0.01

)

-

-

(0.04

)

Basic earnings per common share excluding adjustments noted above

$

1.45

0.89

0.39

1.27

1.45

1.43

Diluted earnings per common share

$

1.42

0.83

0.37

1.26

1.44

1.31

Adjustment due to investment (gains) losses on sales of securities, net

(0.01

)

-

-

-

(0.01

)

0.06

Adjustment due to sale of non-prime automobile portfolio

-

-

-

-

-

0.02

Adjustment due to ORE expense

0.02

0.04

0.03

0.01

0.01

0.03

Adjustment due to branch consolidation expense

-

-

-

-

-

0.04

Adjustment due to FHLB restructuring charges

0.03

0.04

-

-

-

-

Adjustment due to tax effect on adjustments noted above (18)

(0.01

)

(0.02

)

(0.01

)

-

0.01

(0.04

)

Diluted earnings per common share excluding the adjustments noted above

$

1.45

0.89

0.39

1.27

1.45

1.42

Revenue per diluted common share

$

3.95

3.63

3.47

3.32

3.64

3.39

Adjustments as noted above

(0.01

)

-

-

-

(0.01

)

0.08

Revenue per diluted common share excluding adjustments noted above

$

3.94

3.63

3.47

3.32

3.63

3.47

Book value per common share at quarter end

$

60.26

59.05

57.85

56.89

55.97

54.29

Adjustment due to goodwill, core deposit and other intangible assets

(24.58

)

(24.62

)

(24.65

)

(24.44

)

(24.37

)

(24.03

)

Tangible book value per common share at quarter end (9)

$

35.68

34.43

33.20

32.45

31.60

30.26

Equity method investment (17)

Fee income from BHG, net of amortization

$

26,445

17,208

15,592

12,312

32,248

32,261

Funding cost to support investment

1,231

2,134

2,122

2,345

2,366

2,399

Pre-tax impact of BHG

25,214

15,074

13,470

9,967

29,882

29,862

Income tax expense at statutory rates

6,591

3,940

3,521

2,605

7,811

7,806

Earnings attributable to BHG

$

18,623

11,134

9,949

7,362

22,071

22,056

Basic earnings per common share attributable to BHG

$

0.25

0.15

0.13

0.10

0.29

0.29

Diluted earnings per common share attributable to BHG

$

0.25

0.15

0.13

0.10

0.29

0.29

This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

Three months ended

(dollars in September June March December September Junethousands,except pershare data) 2020 2020 2020 2019 2019 2019

Net incomeavailable to $ 106,847 62,444 28,356 96,079 110,521 100,321 commonshareholders

Investment(gains) losses (651 ) 128 (463 ) (68 ) (417 ) 4,466 on sales ofsecurities, net

Sale ofnon-prime - - - - - 1,536 automobileportfolio

ORE expense 1,795 2,888 2,415 804 655 2,523

Branchrationalization - - - - - 3,189 charges

FHLBrestructuring 1,991 2,870 - - - - charges

Tax effect onadjustments (819 ) (1,539 ) (510 ) (192 ) (62 ) (3,062 ) noted above ^(18)

Net incomeavailable tocommonshareholders $ 109,163 66,791 29,798 96,623 110,697 108,973 excludingadjustmentsnoted above



Basic earningsper common $ 1.42 0.83 0.37 1.26 1.45 1.31 share

Adjustment dueto investment(gains) losses (0.01 ) - - - (0.01 ) 0.06 on sales ofsecurities, net

Adjustment dueto sale ofnon-prime - - - - - 0.02 automobileportfolio

Adjustment due 0.02 0.04 0.03 0.01 0.01 0.04 to ORE expense

Adjustment dueto branch - - - - - 0.04 consolidationexpense

Adjustment dueto FHLB 0.03 0.04 - - - - restructuringcharges

Adjustment dueto tax effecton adjustments (0.01 ) (0.02 ) (0.01 ) - - (0.04 ) noted above ^(18)

Basic earningsper commonshare excluding $ 1.45 0.89 0.39 1.27 1.45 1.43 adjustmentsnoted above



Dilutedearnings per $ 1.42 0.83 0.37 1.26 1.44 1.31 common share

Adjustment dueto investment(gains) losses (0.01 ) - - - (0.01 ) 0.06 on sales ofsecurities, net

Adjustment dueto sale ofnon-prime - - - - - 0.02 automobileportfolio

Adjustment due 0.02 0.04 0.03 0.01 0.01 0.03 to ORE expense

Adjustment dueto branch - - - - - 0.04 consolidationexpense

Adjustment dueto FHLB 0.03 0.04 - - - - restructuringcharges

Adjustment dueto tax effecton adjustments (0.01 ) (0.02 ) (0.01 ) - 0.01 (0.04 ) noted above ^(18)

Dilutedearnings percommon share $ 1.45 0.89 0.39 1.27 1.45 1.42 excluding theadjustmentsnoted above



Revenue perdiluted common $ 3.95 3.63 3.47 3.32 3.64 3.39 share

Adjustments as (0.01 ) - - - (0.01 ) 0.08 noted above

Revenue perdiluted commonshare excluding $ 3.94 3.63 3.47 3.32 3.63 3.47 adjustmentsnoted above



Book value percommon share at $ 60.26 59.05 57.85 56.89 55.97 54.29 quarter end

Adjustment dueto goodwill,core deposit (24.58 ) (24.62 ) (24.65 ) (24.44 ) (24.37 ) (24.03 ) and otherintangibleassets

Tangible bookvalue percommon share at $ 35.68 34.43 33.20 32.45 31.60 30.26 quarter end ^(9)



Equity methodinvestment ^ (17)

Fee income fromBHG, net of $ 26,445 17,208 15,592 12,312 32,248 32,261 amortization

Funding cost tosupport 1,231 2,134 2,122 2,345 2,366 2,399 investment

Pre-tax impact 25,214 15,074 13,470 9,967 29,882 29,862 of BHG

Income taxexpense at 6,591 3,940 3,521 2,605 7,811 7,806 statutory rates

Earningsattributable to $ 18,623 11,134 9,949 7,362 22,071 22,056 BHG



Basic earningsper commonshare $ 0.25 0.15 0.13 0.10 0.29 0.29 attributable toBHG

Dilutedearnings percommon share $ 0.25 0.15 0.13 0.10 0.29 0.29 attributable toBHG



This information is preliminary and based on company data available at the timeof the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

Nine months ended

(dollars in thousands, except per share data)

September

September

2020

2019

Net income available to common shareholders

$

197,647

304,802

Investment (gains) losses on sales of securities, net

(986

)

6,009

Sale of non-prime automobile portfolio

-

1,536

ORE expense

7,098

3,424

Branch consolidation expense

-

3,189

FHLB restructuring charges

4,861

-

Tax effect on adjustments noted above (18)

(2,868

)

(3,701

)

Net income available to common shareholders excluding adjustments noted above

$

205,752

315,259

Basic earnings per common share

$

2.62

3.99

Adjustment due to investment (gains) losses on sales of securities, net

(0.01

)

0.08

Adjustment due to sale of non-prime automobile portfolio

-

0.02

Adjustment due to ORE expense

0.09

0.04

Adjustment due to branch consolidation expense

-

0.04

Adjustment due to FHLB restructuring charges

0.06

-

Adjustment due to tax effect on adjustments noted above (18)

(0.04

)

(0.05

)

Basic earnings per common share excluding adjustments noted above

$

2.72

4.12

Diluted earnings per common share

2.62

3.97

Adjustment due to investment (gains) losses on sales of securities, net

(0.01

)

0.08

Adjustment due to sale of non-prime automobile portfolio

-

0.02

Adjustment due to ORE expense

0.09

0.04

Adjustment due to branch rationalization charges

-

0.04

Adjustment due to FHLB restructuring charges

0.06

-

Adjustment due to tax effect on adjustments noted above (18)

(0.04

)

(0.04

)

Diluted earnings per common share excluding the adjustments noted above

$

2.72

4.11

Revenue per diluted common share

$

11.06

10.11

Adjustments as noted above

(0.02

)

0.08

Revenue per diluted common share excluding adjustments noted above

$

11.04

10.19

Equity method investment (17)

Fee income from BHG, net of amortization

$

59,245

77,799

Funding cost to support investment

5,487

7,144

Pre-tax impact of BHG

53,758

70,655

Income tax expense at statutory rates

14,052

18,469

Earnings attributable to BHG

$

39,706

52,186

Basic earnings per common share attributable to BHG

$

0.53

0.68

Diluted earnings per common share attributable to BHG

$

0.53

0.68

This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

Nine months ended

September September(dollars in thousands, except per share data) 2020 2019

Net income available to common shareholders $ 197,647 304,802

Investment (gains) losses on sales of securities, net (986 ) 6,009

Sale of non-prime automobile portfolio - 1,536

ORE expense 7,098 3,424

Branch consolidation expense - 3,189

FHLB restructuring charges 4,861 -

Tax effect on adjustments noted above ^(18) (2,868 ) (3,701 )

Net income available to common shareholders excluding $ 205,752 315,259 adjustments noted above



Basic earnings per common share $ 2.62 3.99

Adjustment due to investment (gains) losses on sales (0.01 ) 0.08 of securities, net

Adjustment due to sale of non-prime automobile - 0.02 portfolio

Adjustment due to ORE expense 0.09 0.04

Adjustment due to branch consolidation expense - 0.04

Adjustment due to FHLB restructuring charges 0.06 -

Adjustment due to tax effect on adjustments noted (0.04 ) (0.05 ) above ^(18)

Basic earnings per common share excluding adjustments $ 2.72 4.12 noted above



Diluted earnings per common share 2.62 3.97

Adjustment due to investment (gains) losses on sales (0.01 ) 0.08 of securities, net

Adjustment due to sale of non-prime automobile - 0.02 portfolio

Adjustment due to ORE expense 0.09 0.04

Adjustment due to branch rationalization charges - 0.04

Adjustment due to FHLB restructuring charges 0.06 -

Adjustment due to tax effect on adjustments noted (0.04 ) (0.04 ) above ^(18)

Diluted earnings per common share excluding the $ 2.72 4.11 adjustments noted above



Revenue per diluted common share $ 11.06 10.11

Adjustments as noted above (0.02 ) 0.08

Revenue per diluted common share excluding $ 11.04 10.19 adjustments noted above



Equity method investment ^(17)

Fee income from BHG, net of amortization $ 59,245 77,799

Funding cost to support investment 5,487 7,144

Pre-tax impact of BHG 53,758 70,655

Income tax expense at statutory rates 14,052 18,469

Earnings attributable to BHG $ 39,706 52,186



Basic earnings per common share attributable to BHG $ 0.53 0.68

Diluted earnings per common share attributable to BHG $ 0.53 0.68



This information is preliminary and based on company data available at the timeof the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

Three months ended

Nine months ended

(dollars in thousands, except per share data)

September

June

September

September

September

2020

2020

2019

2020

2019

Return on average assets (1)

1.26

%

0.77

%

1.62

%

0.83

%

1.56

%

Adjustments as noted above

0.02

%

0.05

%

-

%

0.04

%

0.06

%

Return on average assets excluding adjustments noted above (1)

1.28

%

0.82

%

1.62

%

0.87

%

1.62

%

Tangible assets:

Total assets

$

33,824,931

$

33,342,112

$

27,547,834

$

33,824,931

$

27,547,834

Less: Goodwill

(1,819,811

)

(1,819,811

)

(1,830,652

)

(1,819,811

)

(1,830,652

)

Core deposit and other intangible assets

(44,713

)

(47,131

)

(39,349

)

(44,713

)

(39,349

)

Net tangible assets

$

31,960,407

$

31,475,170

$

25,677,833

$

31,960,407

$

25,677,833

Tangible common equity:

Total stockholders' equity

$

4,787,308

$

4,695,647

$

4,294,630

$

4,787,308

$

4,294,630

Less: Preferred stockholders' equity

(217,126

)

(217,632

)

-

(217,126

)

-

Total common stockholders' equity

4,570,182

4,478,015

4,294,630

4,570,182

4,294,630

Less: Goodwill

(1,819,811

)

(1,819,811

)

(1,830,652

)

(1,819,811

)

(1,830,652

)

Core deposit and other intangible assets

(44,713

)

(47,131

)

(39,349

)

(44,713

)

(39,349

)

Net tangible common equity

$

2,705,658

$

2,611,073

$

2,424,629

$

2,705,658

$

2,424,629

Ratio of tangible common equity to tangible assets

8.47

%

8.30

%

9.44

%

8.47

%

9.44

%

Average tangible assets:

Average assets

$

33,838,716

$

32,785,391

$

27,134,163

$

31,628,677

$

26,040,997

Less: Average goodwill

(1,819,811

)

(1,819,811

)

(1,825,429

)

(1,819,811

)

(1,813,291

)

Average core deposit and other intangible assets

(46,272

)

(48,421

)

(40,794

)

(48,308

)

(43,033

)

Net average tangible assets

$

31,972,633

$

30,917,159

$

25,267,940

$

29,760,558

$

24,184,673

Return on average assets (1)

1.26

%

0.77

%

1.62

%

0.83

%

1.56

%

Adjustment due to goodwill, core deposit and other intangible assets

0.07

%

0.04

%

0.12

%

0.06

%

0.13

%

Return on average tangible assets (1)

1.33

%

0.81

%

1.74

%

0.89

%

1.69

%

Adjustments as noted above

0.03

%

0.06

%

-

%

0.03

%

0.05

%

Return on average tangible assets excluding adjustments noted above (1)

1.36

%

0.87

%

1.74

%

0.92

%

1.74

%

Average tangible common equity:

Average stockholders' equity

$

4,765,864

$

4,499,438

$

4,265,006

$

4,561,567

$

4,134,286

Less: Average preferred equity

(217,535

)

(59,586

)

-

(92,831

)

-

Average common equity

4,548,329

4,439,852

4,265,006

4,468,736

4,134,286

Less: Average goodwill

(1,819,811

)

(1,819,811

)

(1,825,429

)

(1,819,811

)

(1,813,291

)

Average core deposit and other intangible assets

(46,272

)

(48,421

)

(40,794

)

(48,308

)

(43,033

)

Net average tangible common equity

$

2,682,246

$

2,571,620

$

2,398,783

$

2,600,617

$

2,277,962

Return on average equity (1)

8.92

%

5.58

%

10.28

%

5.79

%

9.86

%

Adjustment due to average preferred stockholders' equity

0.43

%

0.08

%

-

%

0.12

%

-

%

Return on average common equity (1)

9.35

%

5.66

%

10.28

%

5.91

%

9.86

%

Adjustment due to goodwill, core deposit and other intangible assets

6.50

%

4.11

%

8.00

%

4.24

%

8.03

%

Return on average tangible common equity (1)

15.85

%

9.77

%

18.28

%

10.15

%

17.89

%

Adjustments as noted above

0.34

%

0.68

%

0.03

%

0.42

%

0.61

%

Return on average tangible common equity excluding adjustments noted above (1)

16.19

%

10.45

%

18.31

%

10.57

%

18.50

%

Allowance for credit losses on loans as a percent of total loans

1.28

%

1.27

%

0.48

%

1.28

%

0.48

%

Impact of excluding PPP loans from total loans

0.15

%

0.14

%

-

%

0.15

%

-

%

Allowance as adjusted for the above exclusion of PPP loans from total loans

1.43

%

1.41

%

0.48

%

1.43

%

0.48

%

This information is preliminary and based on company data available at the time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

Three months ended Nine months ended

(dollars in September June September September Septemberthousands,except pershare data) 2020 2020 2019 2020 2019



Return onaverage 1.26 % 0.77 % 1.62 % 0.83 % 1.56 %assets ^(1)

Adjustmentsas noted 0.02 % 0.05 % - % 0.04 % 0.06 %above

Return onaverageassetsexcluding 1.28 % 0.82 % 1.62 % 0.87 % 1.62 %adjustmentsnoted above ^(1)



Tangible assets:

Total assets $ 33,824,931 $ 33,342,112 $ 27,547,834 $ 33,824,931 $ 27,547,834

Less: (1,819,811 ) (1,819,811 ) (1,830,652 ) (1,819,811 ) (1,830,652 )Goodwill

Core depositand other (44,713 ) (47,131 ) (39,349 ) (44,713 ) (39,349 )intangibleassets

Net tangible $ 31,960,407 $ 31,475,170 $ 25,677,833 $ 31,960,407 $ 25,677,833 assets



Tangiblecommon equity:

Totalstockholders' $ 4,787,308 $ 4,695,647 $ 4,294,630 $ 4,787,308 $ 4,294,630 equity

Less:Preferred (217,126 ) (217,632 ) - (217,126 ) - stockholders'equity

Total commonstockholders' 4,570,182 4,478,015 4,294,630 4,570,182 4,294,630 equity

Less: (1,819,811 ) (1,819,811 ) (1,830,652 ) (1,819,811 ) (1,830,652 )Goodwill

Core depositand other (44,713 ) (47,131 ) (39,349 ) (44,713 ) (39,349 )intangibleassets

Net tangible $ 2,705,658 $ 2,611,073 $ 2,424,629 $ 2,705,658 $ 2,424,629 common equity



Ratio oftangiblecommon equity 8.47 % 8.30 % 9.44 % 8.47 % 9.44 %to tangibleassets



Averagetangible assets:

Average $ 33,838,716 $ 32,785,391 $ 27,134,163 $ 31,628,677 $ 26,040,997 assets

Less: Average (1,819,811 ) (1,819,811 ) (1,825,429 ) (1,819,811 ) (1,813,291 )goodwill

Average coredeposit andother (46,272 ) (48,421 ) (40,794 ) (48,308 ) (43,033 )intangibleassets

Net averagetangible $ 31,972,633 $ 30,917,159 $ 25,267,940 $ 29,760,558 $ 24,184,673 assets



Return onaverage 1.26 % 0.77 % 1.62 % 0.83 % 1.56 %assets ^(1)

Adjustmentdue togoodwill,core deposit 0.07 % 0.04 % 0.12 % 0.06 % 0.13 %and otherintangibleassets

Return onaverage 1.33 % 0.81 % 1.74 % 0.89 % 1.69 %tangibleassets ^(1)

Adjustmentsas noted 0.03 % 0.06 % - % 0.03 % 0.05 %above

Return onaveragetangibleassets 1.36 % 0.87 % 1.74 % 0.92 % 1.74 %excludingadjustmentsnoted above ^(1)



Averagetangible commonequity:

Averagestockholders' $ 4,765,864 $ 4,499,438 $ 4,265,006 $ 4,561,567 $ 4,134,286 equity

Less: Averagepreferred (217,535 ) (59,586 ) - (92,831 ) - equity

Average 4,548,329 4,439,852 4,265,006 4,468,736 4,134,286 common equity

Less: Average (1,819,811 ) (1,819,811 ) (1,825,429 ) (1,819,811 ) (1,813,291 )goodwill

Average coredeposit andother (46,272 ) (48,421 ) (40,794 ) (48,308 ) (43,033 )intangibleassets

Net averagetangible $ 2,682,246 $ 2,571,620 $ 2,398,783 $ 2,600,617 $ 2,277,962 common equity



Return onaverage 8.92 % 5.58 % 10.28 % 5.79 % 9.86 %equity^ (1)

Adjustmentdue toaverage 0.43 % 0.08 % - % 0.12 % - %preferredstockholders'equity

Return onaverage 9.35 % 5.66 % 10.28 % 5.91 % 9.86 %common equity^(1)

Adjustmentdue togoodwill,core deposit 6.50 % 4.11 % 8.00 % 4.24 % 8.03 %and otherintangibleassets

Return onaveragetangible 15.85 % 9.77 % 18.28 % 10.15 % 17.89 %common equity^(1)

Adjustmentsas noted 0.34 % 0.68 % 0.03 % 0.42 % 0.61 %above

Return onaveragetangiblecommon equity 16.19 % 10.45 % 18.31 % 10.57 % 18.50 %excludingadjustmentsnoted above ^(1)



Allowance forcredit losseson loans as a 1.28 % 1.27 % 0.48 % 1.28 % 0.48 %percent oftotal loans

Impact ofexcluding PPP 0.15 % 0.14 % - % 0.15 % - %loans fromtotal loans

Allowance asadjusted forthe aboveexclusion of 1.43 % 1.41 % 0.48 % 1.43 % 0.48 %PPP loansfrom totalloans



This information is preliminary and based on company data available at the timeof the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

1. Ratios are presented on an annualized basis.

2. Net interest margin is the result of net interest income on a tax equivalent basis divided by average interest earning assets.

3. Total revenue is equal to the sum of net interest income and noninterest income.

4. Efficiency ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income.

5. Troubled debt restructurings include loans where the company, as a result of the borrower's financial difficulties, has granted a credit concession to the borrower (i.e., interest only payments for a significant period of time, extending the maturity of the loan, etc.). All of these loans continue to accrue interest at the contractual rate. Troubled debt restructurings do not include, beginning with the quarter ended March 31, 2020, loans for which the Company has granted a deferral of interest and/or principal or other modification pursuant to the guidance issued by the FDIC providing for relief under the Coronavirus Aid, Relief and Economic Security Act.

6. Average risk ratings are based on an internal loan review system which assigns a numeric value of 10 to 100 to all loans to commercial entities based on their underlying risk characteristics as of the end of each quarter. The risk rating scale was changed to allow for granularity, if needed, in criticized and classified risk ratings to distinguish accrual status or structural loan issues. A "10" risk rating is assigned to credits that exhibit Excellent risk characteristics, "20" exhibit Very Good risk characteristics, "30" Good, "40" Satisfactory, "50" Acceptable or Average, "60" Watch List, "70" Criticized, "80" Classified or Substandard, "90" Doubtful and "100" Loss (which are charged-off immediately). Additionally, loans rated "80" or worse that are not nonperforming or restructured loans are considered potential problem loans. Generally, consumer loans are not subjected to internal risk ratings.

7. Annualized net loan charge-offs to average loans ratios are computed by annualizing quarter-to-date net loan charge-offs and dividing the result by average loans for the quarter-to-date period.

8. Capital ratios are calculated using regulatory reporting regulations enacted for such period and are defined as follows:

Equity to total assets - End of period total stockholders' equity as a percentage of end of period assets.

Tangible common equity to tangible assets - End of period total stockholders' equity less end of period preferred stock, goodwill, core deposit and other intangibles as a percentage of end of period assets less end of period goodwill, core deposit and other intangibles.

Leverage - Tier I capital (pursuant to risk-based capital guidelines) as a percentage of adjusted average assets.

Tier I risk-based - Tier I capital (pursuant to risk-based capital guidelines) as a percentage of total risk-weighted assets.

Total risk-based - Total capital (pursuant to risk-based capital guidelines) as a percentage of total risk-weighted assets.

Classified asset - Classified assets as a percentage of Tier 1 capital plus allowance for credit losses.

Tier I common equity to risk weighted assets - Tier 1 capital (pursuant to risk-based capital guidelines) less the amount of any preferred stock or subordinated indebtedness that is considered as a component of Tier 1 capital as a percentage of total risk-weighted assets.

9. Book value per common share computed by dividing total common stockholders' equity by common shares outstanding. Tangible book value per common share computed by dividing total common stockholders' equity, less goodwill, core deposit and other intangibles by common shares outstanding.

10. Amounts are included in the statement of operations in "Gains on mortgage loans sold, net", net of commissions paid on such amounts.

11. At fair value, based on information obtained from Pinnacle's third party broker/dealer for non-FDIC insured financial products and services.

12. Core deposits include all transaction deposit accounts, money market and savings accounts and all certificates of deposit issued in a denomination of less than $250,000. The ratio noted above represents total core deposits divided by total funding, which includes total deposits, FHLB advances, securities sold under agreements to repurchase, subordinated indebtedness and all other interest-bearing liabilities.

13. Associate retention rate is computed by dividing the number of associates employed at quarter end less the number of associates that have resigned in the last 12 months by the number of associates employed at quarter end. Associate retention rate does not include associates at acquired institutions displaced by merger.

14. Adjusted pre-tax, pre-provision income excludes the impact of other real estate expenses and income and investment gains and losses on sales of securities.

15. Represents investment gains (losses) on sales and impairments, net occurring as a result of gains or losses incurred as the result of a change in management's intention to sell a bond prior to the recovery of its amortized cost basis.

16. The dividend payout ratio is calculated as the sum of the annualized dividend rate for dividends paid on common shares divided by the trailing 12-months fully diluted earnings per common share as of the dividend declaration date.

17. Earnings from equity method investment includes the impact of the issuance of subordinated debt as well as the funding costs of the overall franchise. Income tax expense is calculated using statutory tax rates.

18. Tax effect calculated using the blended statutory rate of 26.14 percent.

19. Calculated using the same guidelines as are used in the Federal Financial Institutions Examination Council's Uniform Bank Performance Report.

20. Effective January 1, 2020 Pinnacle Financial adopted the current expected credit loss accounting standard which requires the recognition of all losses expected to be recorded over a loan's life.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201020006266/en/

CONTACT: MEDIA CONTACT: Joe Bass, 615-743-8219 FINANCIAL CONTACT: Harold Carpenter, 615-744-3742 WEBSITE:www.pnfp.com