Business Wire | Jul 21, 2020 05:26PM EDT

PNFP Reports Diluted EPS of $0.83, ROAA of 0.77% and ROTCE of 9.77% For 2Q 2020

Jul. 21, 2020

NASHVILLE, Tenn.--(BUSINESS WIRE)--Jul. 21, 2020--Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported net income per diluted common share of $0.83 for the quarter ended June 30, 2020, compared to net income per diluted common share of $1.31 for the quarter ended June 30, 2019, a decrease of 36.6 percent. Excluding gains and losses on the sale of investment securities and ORE expense for the three months ended June 30, 2020 and 2019, FHLB restructuring charges for the three months ended June 30, 2020, and branch rationalization charges and a loss from the sale of Pinnacle Bank's non-prime automobile portfolio for the three months ended June 30, 2019, net income per diluted common share was $0.89 in 2020, compared to $1.42 in 2019, a year-over-year decrease of 37.3 percent.

Net income per diluted common share was $1.20 for the six months ended June 30, 2020, compared to net income per diluted common share of $2.53 for the six months ended June 30, 2019, a decrease of 52.6 percent. Excluding gains and losses on the sale of investment securities and ORE expense for the six months ended June 30, 2020 and 2019, FHLB restructuring charges for the six months ended June 30, 2020 and branch rationalization charges and a loss from the sale of Pinnacle Bank's non-prime automobile portfolio for the six months ended June 30, 2019, net income per diluted common share was $1.28 in 2020, compared to $2.66 in 2019, a year-over-year decrease of 51.9 percent.

"Those that perform best through any economic cycle are the ones who are willing and able to quickly adapt to both temporary shifts and permanent change," said M. Terry Turner, Pinnacle's president and chief executive officer. "So for us, in the second quarter, we continued our intense focus on protecting our associates, clients, communities and shareholders from a rapidly progressing COVID-19 pandemic. In conjunction with the value we place on our long-term banking relationships, during the first and second quarters we granted payment deferrals on approximately $4.4 billion in loans and issued $2.2 billion in PPP loans to borrowers affected by the pandemic. We also fortified our balance sheet with additional liquidity and capital and began a diligent review of those borrowers we believe to be most impacted by the pandemic. As the second quarter evolved, we gathered an immense amount of borrower information through one-on-one discussions, organized surveys, industry data and other methods. This information, along with strong asset quality metrics, provides us a great deal of confidence about our portfolio's ability to better weather the impact of the pandemic and reconfirms the client selection processes we have deployed over these many years. As we enter the third quarter of 2020, our firm is looking forward to capitalizing on the opportunities that lie ahead for our franchise post-COVID-19."

BALANCE SHEET GROWTH:

* Loans at June 30, 2020 were $22.5 billion, an increase of $3.7 billion from June 30, 2019, reflecting year-over-year growth of 19.7 percent. Loans at June 30, 2020 increased $2.1 billion from March 31, 2020, reflecting a linked-quarter annualized growth rate of 41.6 percent. Contributing to the increased loan volumes at June 30, 2020 were $2.2 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 $7.5 million of loan fee accretion recognized in the quarter, was 2.89 percent for the second quarter of 2020. Average loans were $22.3 billion for the three months ended June 30, 2020, up $2.3 billion from $20.0 billion for the three months ended March 31, 2020, a linked-quarter annualized growth rate of 44.9 percent. At June 30, 2020, the remaining discount associated with fair value accounting adjustments on acquired loans was $38.0 million, compared to $43.9 million at March 31, 2020. At June 30, 2020, there were $68.7 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 June 30, 2020 were a record $25.5 billion, an increase of $6.1 billion from June 30, 2019, reflecting year-over-year growth of 31.2 percent. Deposits at June 30, 2020 increased $4.2 billion from March 31, 2020, reflecting a linked-quarter annualized growth rate of 78.5 percent. Average deposits were $24.8 billion for the three months ended June 30, 2020, compared to $20.7 billion for the three months ended March 31, 2020, a linked-quarter annualized growth rate of 79.8 percent. Core deposits were $21.4 billion at June 30, 2020, compared to $16.5 billion at June 30, 2019 and $18.6 billion at March 31, 2020. The linked-quarter annualized growth rate of core deposits in the second quarter of 2020 was 59.9 percent.

"Traditionally, our firm has produced outsized growth predicated on our unique ability to attract great bankers to our firm," Turner said. "While we have pulled back on our recruiting to some extent, for the first six months of 2020, we've still attracted 56 revenue producers to our firm in 2020. And although we intend to hire fewer new associates than originally planned for 2020, we expect that the revenue producers we hire this year, combined with those hired over the last two years, should enable us to produce balance sheet growth beyond current levels of market demand.

"Obviously, the Paycheck Protection Program had a significant impact on our second quarter results. Although it is difficult to measure precisely the level of increased deposits that came to us from the PPP, our research indicates that our PPP borrowers increased their deposit balances with our firm by roughly $1.7 billion between March 31, 2020 and June 30, 2020, or approximately 61 percent of our linked-quarter core deposit growth of $2.8 billion."

PROFITABILITY:

* Return on average assets was 0.77 percent for the second quarter of 2020, compared to 0.40 percent for the first quarter of 2020 and 1.55 percent for the second quarter of 2019. Second quarter 2020 return on average tangible assets amounted to 0.81 percent, compared to 0.43 percent for the first quarter of 2020 and 1.67 percent for the second quarter of 2019. Excluding the adjustments described above for both 2020 and 2019, return on average assets was 0.82 percent for the second quarter of 2020, compared to 0.42 percent for the first quarter of 2020 and 1.69 percent for the second quarter of 2019. Likewise, excluding those same adjustments, the firm's return on average tangible assets was 0.87 percent for the second quarter of 2020, compared to 0.45 percent for the first quarter of 2020 and 1.82 percent for the second quarter of 2019.

* Return on average equity for the second quarter of 2020 amounted to 5.58 percent, compared to 2.58 percent for the first quarter of 2020 and 9.77 percent for the second quarter of 2019. Excluding preferred stockholders' equity for the three months ended June 30, 2020, return on average common equity for the second quarter of 2020 amounted to 5.66 percent, compared to 2.58 percent for the first quarter of 2020 and 9.77 percent for the second quarter of 2019. Second quarter 2020 return on average tangible common equity amounted to 9.77 percent, compared to 4.48 percent for the first quarter of 2020 and 17.74 percent for the second quarter of 2019. Excluding the adjustments described above for both 2020 and 2019, return on average tangible common equity amounted to 10.45 percent for the second quarter of 2020, compared to 4.71 percent for the first quarter of 2020 and 19.28 percent for the second quarter of 2019.

"Profitability metrics were again significantly influenced by COVID-19," said Harold R. Carpenter, Pinnacle's chief financial officer. "As anticipated the reserve build of approximately $68 million was less than the first quarter. Nevertheless, the elevated provision was primarily due to higher than anticipated current unemployment metrics and qualitative overlays as a result of the uncertainty that exists in our markets. Additionally, exclusive of PPP loans, our loan portfolio decreased by $99.2 million when comparing June 30, 2020 to March 31, 2020, mostly due to loan draw requests, which were down by $380.4 million at June 30, 2020 when compared to March 31, 2020. We remain optimistic that our loan growth will achieve an annualized growth rate of low to mid-single digits in the second half of the year, but this will be subject to the ebbs and flows of the pandemic and the influence it has on business owners and the resulting leverage they are willing to accept in order to grow their businesses. Credit worthy opportunities, although down from prior years, are finding their way to the bank, and we are here to support those projects.

"Deposit inflows were strong and we ended the second quarter with exceptional core deposit growth even after considering the estimated impact of PPP. We continue to grow our core deposit base during these extraordinary times and attribute a large part of that growth to the focus of our relationship managers and the confidence our depositors place in them."

MAINTAINING A STRONG BALANCE SHEET:

* Net charge-offs were $5.4 million for the quarter ended June 30, 2020, compared to $10.2 million for the quarter ended March 31, 2020 and $4.1 million for the quarter ended June 30, 2019. Annualized net charge-offs as a percentage of average loans for the quarter ended June 30, 2020 were 0.10 percent, compared to 0.20 percent for the quarter ended March 31, 2020 and 0.09 percent for the second quarter of 2019. * Nonperforming assets decreased to 0.38 percent of total loans and ORE at June 30, 2020, compared to 0.48 percent at March 31, 2020 and 0.55 percent at June 30, 2019. Nonperforming assets were $84.7 million at June 30, 2020, compared to $98.2 million at March 31, 2020 and $102.7 million at June 30, 2019. * The classified asset ratio at June 30, 2020 was 11.2 percent, compared to 12.0 percent at March 31, 2020 and 13.9 percent at June 30, 2019. Classified assets were $338.4 million at June 30, 2020, compared to $350.1 million at March 31, 2020 and $337.8 million at June 30, 2019. * The allowance for credit losses represented 1.27 percent of total loans at June 30, 2020, compared to 1.09 percent at March 31, 2020 and 0.48 percent at June 30, 2019. Excluding PPP loans, the allowance for credit losses as a percentage of loans was 1.41 percent at June 30, 2020. The ratio of the allowance for credit losses to nonperforming loans increased to 456.1 percent at June 30, 2020, from 313.5 percent at March 31, 2020 and 118.6 percent at June 30, 2019. At June 30, 2020, purchased credit deteriorated loans of $8.9 million, which were recorded at fair value upon acquisition, represented 14.3 percent of the firm's nonperforming loans. Provision for credit losses was $68.3 million in the second quarter of 2020, compared to $99.9 million in the first quarter of 2020 and $7.2 million in the second 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 $217.6 million. The net proceeds, which have been retained at Pinnacle Financial, contributed to an increase in Tier 1 capital at Pinnacle Financial and will provide additional capital for general corporate purposes.

"Net charge-offs decreased by $4.8 million when comparing the second quarter to the first quarter of 2020 due in part to a $1.7 million partial recovery of a first quarter charge-off," Carpenter said. "This meaningful recovery in the second quarter was related to a credit that we charged down and disclosed last quarter as the credit had been immediately impacted by the pandemic. We highlight this matter as it points to the speed at which we believe our firm is traveling and intends to travel in addressing problem credits. Our goal is to identify these credits and work them to an appropriate resolution as quickly as possible.

"Although substantially all of our credit metrics improved during the second quarter, we continue to expend great effort on several focus segments within our loan portfolio that we believe are the most negatively impacted by COVID-19, namely hospitality, restaurants, retail and entertainment. Our financial advisors are hands-on in identifying those borrowers that are experiencing difficulty and working with them to eliminate or minimize whatever loss content may be present in their portfolios. We've also experienced great progress with respect to borrower deferrals. During April 2020, borrower deferrals topped out at approximately $4.4 billion. At June 30, 2020, deferrals had decreased to $4.2 billion and, as of July 17, 2020, loans for which principal and/or interest was being deferred had decreased to $2.7 billion. New deferral requests have essentially ceased. Though it's still early in this process, and the disruption being experienced is like nothing we have ever seen, we are optimistic that many of our borrowers are gaining traction and will find a path forward through the pandemic."

REVENUES:

* Revenues for the quarter ended June 30, 2020 were $273.6 million, an increase of $9.7 million from the $263.9 million recognized in the first quarter of 2020, an annualized growth rate of 14.7 percent. Revenues were up $14.0 million from the second quarter of 2019, a year-over-year growth rate of 5.4 percent. Revenue per fully diluted common share was $3.63 for the three months ended June 30, 2020, compared to $3.47 for the first quarter of 2020 and $3.39 for the second quarter of 2019. * Net interest income for the quarter ended June 30, 2020 was $200.7 million, compared to $193.6 million for the first quarter of 2020 and $188.9 million for the second quarter of 2019, a year-over-year growth rate of 6.2 percent. Net interest margin was 2.87 percent for the second quarter of 2020, compared to 3.28 percent for the first quarter of 2020 and 3.48 percent for the second quarter of 2019. * Impacting the firm's net interest income and net interest margin in the second quarter were the impact of both the PPP and the firm's building of additional on-balance sheet liquidity as a result of the pandemic. PPP loans increased the firm's average loans by $1.7 billion during the second quarter of 2020. Additionally, the firm also maintained approximately $2.0 billion in average excess liquidity, primarily in Federal funds sold and other cash equivalent balances. The firm's second quarter 2020 net interest margin was negatively impacted by approximately 0.32 percent as a result of PPP loans and building of excess liquidity throughout 2020. * Included in net interest income for the second quarter of 2020 was $5.8 million of discount accretion associated with fair value adjustments, compared to $7.4 million of discount accretion recognized in the first quarter of 2020 and $8.9 million in the second quarter of 2019. There remains $38.0 million of purchase accounting discount accretion as of June 30, 2020. During the second quarter of 2020, the firm restructured approximately $392 million of FHLB advances resulting in $6.6 million of prepayment penalties, of which $2.9 million was recognized in the second quarter. The remaining prepayment penalties will be amortized over the next 5 years. The weighted average rate for the FHLB advances that were either paid off or restructured was 2.16 percent, while the new FHLB advances were acquired at an annualized rate of 0.60 percent. * Noninterest income for the quarter ended June 30, 2020 was $73.0 million, compared to $70.4 million for the first quarter of 2020, a linked-quarter annualized growth rate of 14.8 percent. Compared to $70.7 million for the second quarter of 2019, noninterest income grew 3.2 percent year-over-year. Wealth management revenues, which include investment, trust and insurance services, were $12.2 million for the quarter ended June 30, 2020, compared to $16.6 million for the first quarter of 2020 and $11.5 million for the second quarter of 2019, a year-over-year increase of 6.0 percent. Wealth management revenues have been aided by a growth in revenue producers over the last 12 to 18 months. Income from the firm's investment in BHG was $17.2 million for the quarter ended June 30, 2020, up 10.4 percent compared to $15.6 million for the quarter ended March 31, 2020 and down 46.7 percent, compared to $32.3 million for the quarter ended June 30, 2019. Net gains on mortgage loans sold were $19.6 million during the quarter ended June 30, 2020, up 128.6 percent compared to $8.6 million for the quarter ended March 31, 2020. Net gains on mortgage loans sold were up 226.4 percent, compared to $6.0 million during the quarter ended June 30, 2019. This dramatic growth reflects market conditions and the addition of a meaningful number of revenue producing mortgage originators over the last 12 to 18 months. Other noninterest income was $17.2 million for the quarter ended June 30, 2020, compared to $20.1 million for the quarter ended March 31, 2020 and $16.5 million for the quarter ended June 30, 2019, year-over-year an increase of 4.4 percent. Contributing to the year-over-year growth were increases in SBA loan fees, loan swap fees and the value of the firm's bank-owned life insurance policies.

"After taking into account several of the tactics that were deployed in response to COVID-19, we are pleased with our net interest margin for the second quarter," 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 third quarter will be to continue to reduce our deposit costs for both core and wholesale funding sources. Additionally, as the COVID-19 outlook improves, we also anticipate reducing our level of liquidity over the next two to three quarters and expect that eventually we will find our way to historical balance sheet liquidity levels. We've also been successful in the implementation of client loan floors on new and renewed loans. Our financial advisors are active with borrowers on this matter and during the second quarter, we negotiated new floors on $699 million in new and renewed short-term variable rate loans. Over and above that amount, we also negotiated floors on $1.1 billion in unfunded commitments also tied to short-term variable rates. These successful negotiations resulted in a loan floor penetration rate of 61 percent for funded loans and 85 percent for unfunded loans, which we consider to be exceptional. All of these matters should help support our core margin in future quarters.

"Our residential mortgage business continues to have a big year with a record of $551 million of secondary market placements in the second quarter. Our mortgage business remains robust and is helpful to us in countering our other businesses that have been more negatively impacted by the pandemic.

"We believe BHG is also having another great year. For the first six 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. BHG has recently announced that in the third quarter it will seek to access the capital markets as it looks to place its first securitization over the next few weeks. This securitization will allow BHG to retain the interest income from the loans originated by it at a spread that they believe is greater than spreads it has achieved through its traditional business model. BHG anticipates that approximately $175 million in on-balance sheet BHG loans will collateralize the anticipated $160 million in securitization proceeds. BHG will not substitute new loans for loans in the collateral pool that experience payment defaults. We are also excited that the entire issuance has achieved an investment grade rating providing further confidence to investors."

OTHER HIGHLIGHTS:

* The firm's efficiency ratio for the second quarter of 2020 decreased to 48.1 percent, compared to 52.0 percent for the first quarter of 2020 and 49.2 percent in the second quarter of 2019. The ratio of noninterest expenses to average assets was 1.61 percent for the second quarter of 2020, compared to 1.96 percent in the first quarter of 2020 and 1.98 percent in the second quarter of 2019. Excluding the adjustments described above for both 2020 and 2019, the efficiency ratio was 46.0 percent for the second quarter of 2020, compared to 51.2 percent for the first quarter of 2020 and 45.9 percent for the second quarter of 2019. Excluding ORE expense for 2020 and 2019, FHLB restructuring charges for 2020 and branch rationalization charges in 2019, the ratio of noninterest expense to average assets was 1.54 percent for the second quarter of 2020, compared to 1.92 percent for the first quarter of 2020 and 1.89 percent for the second quarter of 2019. * Noninterest expense for the quarter ended June 30, 2020 was $131.6 million, compared to $137.3 million in the first quarter of 2020 and $127.7 million in the second quarter of 2019, reflecting a year-over-year increase of 3.1 percent. Excluding ORE expense for 2020 and 2019, FHLB restructuring charges for 2020 and branch rationalization charges for 2019, noninterest expense for the second quarter of 2020 increased 3.2 percent over the second quarter of 2019. Salaries and employee benefits were $73.9 million in the second quarter of 2020, compared to $80.5 million in the first quarter of 2020 and $75.6 million in the second quarter of 2019, reflecting a year-over-year decrease of 2.3 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 $573,000 in the second quarter of 2020, compared to $4.7 million in the first quarter of 2020 and $11.0 million in the second quarter of last year. The firm announced that as a result of the pandemic's impact on the anticipated earnings for this year, the firm has reduced its accrual for payouts under its broad-based cash incentive plan for 2020 to a payout of approximately 25 percent. Additionally, the firm announced that performance-based equity compensation expense for previously granted awards with performance criteria tied to fiscal year 2020 tranches has also been significantly reduced, as many of these awards are likely to be forfeited as a result of the pandemic. * The effective tax rate for the second quarter of 2020 was expense of 15.2 percent, compared to a benefit of 6.2 percent for the first quarter of 2020 and expense of 19.6 percent for the second quarter of 2019. The effective tax rate in the first quarter of 2020 was impacted by the tax benefit related to provision expense associated with the COVID-19 pandemic. * During the first quarter of 2020, the firm acquired 1.0 million shares of its common stock in open market transactions pursuant to its previously announced share repurchase program, at an average price of $50.01. Since the announcement of the repurchase program, the number of shares acquired has been 2.5 million at an average price of $52.66. The firm's last transaction to repurchase shares of its common stock was on March 19, 2020. Shortly thereafter, the company suspended its share repurchase program.

"Expenses decreased in the second quarter of 2020 due to a meaningful reduction in incentive accruals as a result of COVID-19's impact on our earnings for this year," Carpenter said. "At June 30, 2020, we continue to accrue a 25 percent target level payout due to the newly implemented core deposit component for which our associates are outperforming with respect to both deposit volume and rate goals. We also added $4.5 million to off-balance sheet reserves in bringing the total off-balance sheet reserve to $20.8 million for this year.

"As we consider expense run rates going into the remainder of 2020, we have eliminated much of our 2020 hiring plan to consider only staffing of our Atlanta buildout, key revenue producer adds in our other markets as well as critical operational positions. We reaffirm our belief that our 2020 annualized expense growth will be in the low to mid-single digit percentage in comparison to 2019."

BOARD OF DIRECTORS DECLARES DIVIDENDS

On July 21, 2020, Pinnacle Financial's Board of Directors approved a quarterly cash dividend of $0.16 per common share to be paid on Aug. 28, 2020 to common shareholders of record as of the close of business on Aug. 7, 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 its 6.75 percent Series B Non-Cumulative Perpetual Preferred Stock payable on Sept. 1, 2020 to shareholders of record at the close of business on Aug. 17, 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 July 22, 2020, to discuss second 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 2019 deposit data from the FDIC. Pinnacle earned a spot on FORTUNE's 2019 list of the 100 Best Companies to Work For(r) in the U.S., its third 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 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 $33.3 billion in assets as of June 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 Georgia.

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 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 SUBSIDIARIESCONSOLIDATED BALANCE SHEETS - UNAUDITED

(dollars in thousands)

June 30, 2020 December 31, June 30, 2019 2019

ASSETS

Cash and noninterest-bearing due $ 213,551 $ 157,901 $ 153,071 from banks

Restricted cash 254,593 137,045 121,440

Interest-bearing due from banks 2,221,519 210,784 332,862

Federal funds sold and other 3,798 20,977 20,214

Cash and cash equivalents 2,693,461 526,707 627,587

Securities available-for-sale, at 3,310,278 3,539,995 3,256,906 fair value

Securities held-to-maturity (fairvalue of $1.1 billion, net ofallowance for credit losses of$188,000 at June 30, 2020, $201.2 1,048,035 188,996 190,928 million and $200.6 million at Dec.31, 2019 and June 30, 2019,respectively)

Consumer loans held-for-sale 69,443 81,820 70,004

Commercial loans held-for-sale 16,201 17,585 21,295

Loans 22,520,300 19,787,876 18,814,318

Less allowance for credit losses (285,372) (94,777) (90,253)

Loans, net 22,234,928 19,693,099 18,724,065

Premises and equipment, net 281,739 273,932 274,729

Equity method investment 302,879 278,037 243,875

Accrued interest receivable 112,675 84,462 84,582

Goodwill 1,819,811 1,819,811 1,807,121

Core deposits and other intangible 47,131 51,130 41,578 assets

Other real estate owned 22,080 29,487 26,657

Other assets 1,383,451 1,220,435 1,171,028

Total assets $ 33,342,112 $ 27,805,496 $ 26,540,355

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits:

Noninterest-bearing $ 6,892,864 $ 4,795,476 $ 4,493,419

Interest-bearing 4,815,012 3,630,168 3,129,941

Savings and money market accounts 9,338,719 7,813,939 7,547,166

Time 4,475,234 3,941,445 4,278,857

Total deposits 25,521,829 20,181,028 19,449,383

Securities sold under agreements 194,553 126,354 154,169 to repurchase

Federal Home Loan Bank advances 1,787,551 2,062,534 1,960,062

Subordinated debt and other 717,043 749,080 464,144 borrowings

Accrued interest payable 34,916 42,183 30,376

Other liabilities 390,573 288,569 305,860

Total liabilities 28,646,465 23,449,748 22,363,994

Preferred stock, no par value,$10.0 million shares authorized;225,000 shares non-cumulativeperpetual preferred stock, SeriesB, liquidation preference $1,000 217,632 - - issued and outstanding at June 30,2020 and no shares issued andoutstanding at Dec. 31, 2019 andJune 30, 2019, respectively

Common stock, par value $1.00;180.0 million shares authorized;75.8 million, 76.6 million and76.9 million shares issued and 75,836 76,564 76,929 outstanding at June 30, 2020, Dec.31, 2019 and June 30, 2019,respectively

Additional paid-in capital 3,019,286 3,064,467 3,076,486

Retained earnings 1,218,367 1,184,183 1,002,434

Accumulated other comprehensive 164,526 30,534 20,512 income, net of taxes

Total stockholders' equity 4,695,647 4,355,748 4,176,361

Total liabilities and $ 33,342,112 $ 27,805,496 $ 26,540,355 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 inthousands, Three months ended Six months endedexcept for pershare data)

June 30, March 31, June 30, June 30, June 30, 2020 2020 2019 2020 2019

Interest income:

Loans, $ 226,281 $ 236,420 $ 237,653 $ 462,701 $ 467,032 including fees

Securities

Taxable 9,589 10,268 12,243 19,857 25,783

Tax-exempt 14,596 13,824 12,556 28,420 24,228

Federal funds 1,272 2,557 3,399 3,829 6,691 sold and other

Total interest 251,738 263,069 265,851 514,807 523,734 income

Interest expense:

Deposits 33,727 50,698 58,988 84,425 113,205

Securitiessold under 94 115 142 209 287 agreements torepurchase

FHLB advancesand other 17,260 18,704 17,803 35,964 34,078 borrowings

Total interest 51,081 69,517 76,933 120,598 147,570 expense

Net interest 200,657 193,552 188,918 394,209 376,164 income

Provision for 68,332 99,889 7,195 168,221 14,379 credit losses

Net interestincome after 132,325 93,663 181,723 225,988 361,785 provision forcredit losses

Noninterest income:

Servicecharges on 6,910 9,032 8,940 15,942 17,482 depositaccounts

Investment 5,971 9,239 5,868 15,210 11,207 services

Insurancesales 2,231 3,240 2,147 5,471 5,075 commissions

Gains onmortgage loans 19,619 8,583 6,011 28,202 10,889 sold, net

Investmentgains (losses) (128) 463 (4,466) 335 (6,426) on sales, net

Trust fees 3,958 4,170 3,461 8,128 6,756

Income fromequity method 17,208 15,592 32,261 32,800 45,551 investment

Othernoninterest 17,185 20,058 16,460 37,243 31,211 income

Totalnoninterest 72,954 70,377 70,682 143,331 121,745 income

Noninterest expense:

Salaries andemployee 73,887 80,480 75,620 154,367 145,996 benefits

Equipment and 22,026 20,978 23,844 43,004 43,175 occupancy

Other real 2,888 2,415 2,523 5,303 2,769 estate, net

Marketing andother business 2,142 3,251 3,282 5,393 6,230 development

Postage and 2,070 1,990 2,079 4,060 3,971 supplies

Amortization 2,479 2,520 2,271 4,999 4,582 of intangibles

Othernoninterest 26,113 25,715 18,067 51,828 35,014 expense

Totalnoninterest 131,605 137,349 127,686 268,954 241,737 expense

Income before 73,674 26,691 124,719 100,365 241,793 income taxes

Income tax(benefit) 11,230 (1,665) 24,398 9,565 47,512 expense

Net income $ 62,444 $ 28,356 $ 100,321 $ 90,800 $ 194,281

Per share information:

Basic netincome per $ 0.83 $ 0.37 $ 1.31 $ 1.20 $ 2.54 common share

Diluted netincome per $ 0.83 $ 0.37 $ 1.31 $ 1.20 $ 2.53 common share

Weightedaverage common sharesoutstanding:

Basic 75,210,869 75,803,402 76,343,608 75,507,136 76,572,120

Diluted 75,323,259 75,966,295 76,611,657 75,645,768 76,866,163

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 June March December September June Marchthousands) 2020 2020 2019 2019 2019 2019

Balance sheet data, at quarter end:

Commercial and $ 8,516,333 6,752,317 6,290,296 6,002,285 5,795,107 5,419,520 industrial loans

Commercial realestate - owner 2,708,306 2,650,170 2,669,766 2,595,837 2,624,160 2,617,541 occupied

Commercial real 4,822,537 4,520,234 4,418,658 4,443,687 4,252,098 4,107,953 estate - investment

Commercial realestate - 561,481 550,338 620,794 669,721 709,135 693,652 multifamily andother

Consumer realestate - mortgage 3,042,604 3,106,465 3,068,625 3,025,502 2,949,755 2,887,628 loans

Construction andland development 2,574,494 2,520,937 2,430,483 2,253,303 2,117,969 2,097,570 loans

Consumer and other 294,545 296,392 289,254 355,307 366,094 351,042

Total loans 22,520,300 20,396,853 19,787,876 19,345,642 18,814,318 18,174,906

Allowance for (285,372) (222,465) (94,777) (93,647) (90,253) (87,194) credit losses

Securities 4,358,313 4,089,821 3,728,991 3,583,119 3,447,834 3,444,049

Total assets 33,342,112 29,264,180 27,805,496 27,547,834 26,540,355 25,557,858

Noninterest-bearing 6,892,864 4,963,415 4,795,476 4,702,155 4,493,419 4,317,787 deposits

Total deposits 25,521,829 21,333,171 20,181,028 20,000,677 19,449,383 18,480,461

Securities soldunder agreements to 194,553 186,548 126,354 95,402 154,169 100,698 repurchase

FHLB advances 1,787,551 2,317,520 2,062,534 2,052,548 1,960,062 2,121,075

Subordinated debtand other 717,043 669,658 749,080 750,488 464,144 484,703 borrowings

Total stockholders' 4,695,647 4,385,128 4,355,748 4,294,630 4,176,361 4,055,939 equity

Balance sheet data, quarterly averages:

Total loans $ 22,257,168 20,009,288 19,599,620 19,216,835 18,611,164 17,938,480

Securities 4,194,811 3,814,543 3,662,829 3,507,363 3,412,475 3,302,676

Federal funds sold 2,618,832 807,796 717,927 802,326 530,556 469,909 and other

Total earning 29,070,811 24,631,627 23,980,376 23,526,524 22,554,195 21,711,065 assets

Total assets 32,785,391 28,237,642 27,604,774 27,134,163 25,915,971 25,049,954

Noninterest-bearing 6,432,010 4,759,729 4,834,694 4,574,821 4,399,766 4,195,443 deposits

Total deposits 24,807,032 20,679,455 20,078,594 19,778,007 18,864,859 18,358,094

Securities soldunder agreements to 191,084 141,192 109,127 134,197 117,261 109,306 repurchase

FHLB advances 2,213,769 2,029,888 1,992,213 2,136,928 2,164,341 1,926,358

Subordinated debtand other 706,657 673,415 753,244 533,194 469,498 470,775 borrowings

Total stockholders' 4,499,438 4,417,155 4,343,246 4,265,006 4,117,754 4,017,375 equity

Statement of operations data, for the three months ended:

Interest income $ 251,738 263,069 268,453 275,749 265,851 257,883

Interest expense 51,081 69,517 74,281 79,943 76,933 70,637

Net interest income 200,657 193,552 194,172 195,806 188,918 187,246

Provision for 68,332 99,889 4,644 8,260 7,195 7,184 credit losses

Net interest incomeafter provision for 132,325 93,663 189,528 187,546 181,723 180,062 credit losses

Noninterest income 72,954 70,377 59,462 82,619 70,682 51,063

Noninterest expense 131,605 137,349 130,470 132,941 127,686 114,051

Income before taxes 73,674 26,691 118,520 137,224 124,719 117,074

Income tax 11,230 (1,665) 22,441 26,703 24,398 23,114 (benefit) expense

Net income $ 62,444 28,356 96,079 110,521 100,321 93,960



Profitability and other ratios:

Return on avg. 0.77 % 0.40 % 1.38 % 1.62 % 1.55 % 1.52 %assets ^(1)

Return on avg. 5.58 % 2.58 % 8.78 % 10.28 % 9.77 % 9.49 %equity ^(1)

Return on avg. 5.66 % 2.58 % 8.78 % 10.28 % 9.77 % 9.49 %common equity^ (1)

Return on avg.tangible common 9.77 % 4.48 % 15.41 % 18.28 % 17.74 % 17.60 %equity ^(1)

Common stockdividend payout 16.41 % 14.61 % 12.24 % 12.31 % 12.88 % 13.39 %ratio ^(16)

Net interest margin 2.87 % 3.28 % 3.35 % 3.43 % 3.48 % 3.62 %^ (2)

Noninterest incometo total revenue ^ 26.66 % 26.67 % 23.44 % 29.67 % 27.23 % 21.43 %(3)

Noninterest income 0.89 % 1.00 % 0.85 % 1.21 % 1.09 % 0.83 %to avg. assets ^(1)

Noninterest exp. to 1.61 % 1.96 % 1.88 % 1.94 % 1.98 % 1.85 %avg. assets ^(1)

Efficiency ratio ^ 48.10 % 52.04 % 51.44 % 47.75 % 49.19 % 47.86 %(4)

Avg. loans to avg. 89.72 % 96.76 % 97.61 % 97.16 % 98.66 % 97.71 %deposits

Securities to total 13.07 % 13.98 % 13.41 % 13.01 % 12.99 % 13.48 %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 Three months ended Three months endedthousands) June 30, 2020 June 30, 2019

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

Interest-earning assets

Loans^ (1) (2) $ 22,257,168 $ 226,281 4.16 % $ 18,611,164 $ 237,653 5.22 %

Securities

Taxable 2,157,081 9,589 1.79 % 1,781,814 12,243 2.76 %

Tax-exempt ^(2) 2,037,730 14,596 3.44 % 1,630,661 12,556 3.68 %

Federal funds sold 2,618,832 1,272 0.20 % 530,556 3,399 2.57 %and other

Totalinterest-earning 29,070,811 $ 251,738 3.58 % 22,554,195 $ 265,851 4.85 %assets

Nonearning assets

Intangible assets 1,868,231 1,850,146

Other nonearning 1,846,349 1,511,630 assets

Total assets $ 32,785,391 $ 25,915,971



Interest-bearing liabilities

Interest-bearing deposits:

Interest checking 4,639,729 4,256 0.37 % 3,150,865 9,305 1.18 %

Savings and money 9,181,266 8,904 0.39 % 7,355,783 26,947 1.47 %market

Time 4,554,027 20,567 1.82 % 3,958,445 22,736 2.30 %

Totalinterest-bearing 18,375,022 33,727 0.74 % 14,465,093 58,988 1.64 %deposits

Securities soldunder agreements to 191,084 94 0.20 % 117,261 142 0.49 %repurchase

Federal Home Loan 2,213,769 9,502 1.73 % 2,164,341 11,552 2.14 %Bank advances

Subordinated debtand other 706,657 7,758 4.42 % 469,498 6,251 5.34 %borrowings

Totalinterest-bearing 21,486,532 51,081 0.96 % 17,216,193 76,933 1.79 %liabilities

Noninterest-bearing 6,432,010 - - 4,399,766 - - deposits

Total deposits andinterest-bearing 27,918,542 $ 51,081 0.74 % 21,615,959 $ 76,933 1.43 %liabilities

Other liabilities 367,411 182,258

Stockholders' 4,499,438 4,117,754 equity

Total liabilitiesand stockholders' $ 32,785,391 $ 25,915,971 equity

Net interest income $ 200,657 $ 188,918

Net interest spread 2.62 % 3.06 %^(3)

Net interest margin 2.87 % 3.48 %^(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 $6.9 million of taxable equivalent income for the three months endedJune 30, 2020 compared to $6.9 million for the three months ended June 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 June 30, 2020 would have been2.84% compared to a net interest spread of 3.42% for the three months endedJune 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 time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

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



(dollars in Six months ended Six months endedthousands) June 30, 2020 June 30, 2019

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

Interest-earning assets

Loans^ (1) (2) $ 21,133,228 $ 462,701 4.48 % $ 18,276,680 $ 467,032 5.25 %

Securities

Taxable 2,040,855 19,857 1.96 % 1,813,693 25,783 2.87 %

Tax-exempt ^(2) 1,963,822 28,420 3.47 % 1,544,186 24,228 3.77 %

Federal funds sold 1,713,314 3,829 0.45 % 500,400 6,691 2.70 %and other

Totalinterest-earning 26,851,219 $ 514,807 3.96 % 22,134,959 $ 523,734 4.89 %assets

Nonearning assets

Intangible assets 1,869,147 1,851,292

Other nonearning 1,791,150 1,499,104 assets

Total assets $ 30,511,516 $ 25,485,355



Interest-bearing liabilities

Interest-bearing deposits:

Interest checking 4,192,505 12,723 0.61 % 3,140,734 18,628 1.20 %

Savings and money 8,639,407 29,339 0.68 % 7,446,911 53,284 1.44 %market

Time 4,315,462 42,363 1.97 % 3,727,061 41,293 2.23 %

Totalinterest-bearing 17,147,374 84,425 0.99 % 14,314,706 113,205 1.59 %deposits

Securities soldunder agreements to 166,138 209 0.25 % 113,305 287 0.51 %repurchase

Federal Home Loan 2,121,828 19,909 1.89 % 2,046,007 21,515 2.12 %Bank advances

Subordinated debtand other 690,036 16,055 4.68 % 470,133 12,563 5.39 %borrowings

Totalinterest-bearing 20,125,376 120,598 1.21 % 16,944,151 147,570 1.76 %liabilities

Noninterest-bearing 5,595,869 - - 4,298,169 - - deposits

Total deposits andinterest-bearing 25,721,245 $ 120,598 0.94 % 21,242,320 $ 147,570 1.40 %liabilities

Other liabilities 331,975 175,193

Stockholders' 4,458,296 4,067,842 equity

Total liabilitiesand stockholders' $ 30,511,516 $ 25,485,355 equity

Net interest income $ 394,209 $ 376,164

Net interest spread 2.76 % 3.14 %^(3)

Net interest margin 3.06 % 3.55 %^(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 $14.0 million of taxable equivalent income for the six-months endedJune 30, 2020 compared to $13.4 million for the six months ended June 30, 2019.The tax-exempt benefit has been reduced by the projected impact of tax-exemptincome that will be disallowed pursuant to IRS Regulations as of and for thethen 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 six months ended June 30, 2020 would have been3.02% compared to a net interest spread of 3.49% for the six months ended June30, 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 June March December September June Marchthousands) 2020 2020 2019 2019 2019 2019

Asset qualityinformation and ratios:

Nonperforming assets:

Nonaccrual loans $ 62,562 70,970 61,605 73,263 76,077 96,144

Other realestate (ORE) and 22,105 27,182 29,487 30,049 26,658 15,138 othernonperformingassets (NPAs)

Totalnonperforming $ 84,667 $ 98,152 $ 91,092 $ 103,312 $ 102,735 $ 111,282 assets

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

Accruingtroubled debt $ 3,274 $ 3,869 $ 4,850 $ 5,803 $ 7,412 $ 5,481 restructurings ^(5)

Accruingpurchase credit $ 14,616 $ 13,984 $ 13,249 $ 12,887 $ 12,632 $ 13,122 impaired loans

Net loan $ 5,385 $ 10,155 $ 3,515 $ 4,866 $ 4,136 $ 3,565 charge-offs

Allowance forcredit losses to 456.1 % 313.5 % 153.8 % 127.8 % 118.6 % 90.7 %nonaccrual loans

As a percentage of total loans:

Past dueaccruing loans 0.09 % 0.17 % 0.18 % 0.24 % 0.21 % 0.22 %over 30 days

Potentialproblem loans ^ 1.12 % 1.22 % 1.39 % 1.31 % 1.21 % 1.05 %(6)

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

Nonperformingassets to total 0.38 % 0.48 % 0.46 % 0.53 % 0.55 % 0.61 %loans, ORE andother NPAs

Classified assetratio (Pinnacle 11.2 % 12.0 % 13.4 % 13.5 % 13.9 % 13.0 %Bank) ^(8)

Annualized netloan charge-offs 0.10 % 0.20 % 0.07 % 0.10 % 0.09 % 0.08 %to avg. loans ^(7)

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

44.4 4.5 4.4 4.4 4.5

Interest rates and yields:

Loans 4.16 % 4.84 % 5.00 % 5.21 % 5.22 % 5.28 %

Securities 2.59 % 2.82 % 2.85 % 3.00 % 3.20 % 3.37 %

Total earning 3.58 % 4.41 % 4.58 % 4.78 % 4.85 % 4.94 %assets

Total deposits,including 0.55 % 0.99 % 1.10 % 1.25 % 1.25 % 1.20 %non-interestbearing

Securities soldunder agreements 0.20 % 0.33 % 0.48 % 0.45 % 0.49 % 0.54 %to repurchase

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

Subordinateddebt and other 4.42 % 4.96 % 4.04 % 4.22 % 5.34 % 5.44 %borrowings

Total depositsand 0.74 % 1.19 % 1.29 % 1.40 % 1.43 % 1.37 %interest-bearingliabilities



Capital andother ratios ^ (8):

PinnacleFinancial ratios:

Stockholders'equity to total 14.1 % 15.0 % 15.7 % 15.6 % 15.7 % 15.9 %assets

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

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

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

Leverage 8.4 % 8.8 % 9.1 % 8.9 % 9.1 % 9.0 %

Tangible commonequity to 8.3 % 9.2 % 9.6 % 9.4 % 9.4 % 9.3 %tangible assets

Pinnacle Bank ratios:

Common equity 11.0 % 11.0 % 11.2 % 11.1 % 10.3 % 10.4 %Tier one

Tier one 11.0 % 11.0 % 11.2 % 11.1 % 10.3 % 10.4 %risk-based

Total risk-based 12.4 % 12.2 % 12.2 % 12.1 % 11.3 % 11.4 %

Leverage 8.9 % 10.3 % 10.5 % 10.4 % 9.8 % 9.9 %

Construction andland developmentloans 83.6 % 84.2 % 83.6 % 79.9 % 82.6 % 84.1 %as a percentageof total capital^(19)

Non-owneroccupiedcommercial realestate and 275.0 % 264.1 % 268.3 % 272.8 % 288.9 % 282.5 %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 June March December September June Marchthousands,except pershare data) 2020 2020 2019 2019 2019 2019



Per share data:

Earnings - $ 0.83 0.37 1.26 1.45 1.31 1.22 basic

Earnings -basic,excluding $ 0.89 0.39 1.27 1.45 1.43 1.24 non-GAAPadjustments

Earnings - $ 0.83 0.37 1.26 1.44 1.31 1.22 diluted

Earnings -diluted,excluding $ 0.89 0.39 1.27 1.45 1.42 1.24 non-GAAPadjustments

Commondividends per $ 0.16 0.16 0.16 0.16 0.16 0.16 share

Book valueper commonshare at $ 59.05 57.85 56.89 55.97 54.29 52.63 quarter end ^(9)

Tangible bookvalue percommon share $ 34.43 33.20 32.45 31.60 30.26 28.61 at quarterend ^(9)

Revenue perdiluted $ 3.63 3.47 3.32 3.64 3.39 3.09 common share

Revenue perdilutedcommon share, $ 3.63 3.47 3.32 3.63 3.47 3.12 excludingnon-GAAPadjustments



Investor information:

Closing salesprice ofcommon stock $ 41.99 37.54 64.00 56.75 57.48 54.70 on lasttrading dayof quarter

High closingsales priceof common $ 48.98 64.03 64.80 61.14 59.23 59.55 stock duringquarter

Low closingsales priceof common $ 33.24 31.98 54.58 50.78 52.95 46.35 stock duringquarter



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

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

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



Other information:

Residentialmortgage loan sales:

Gross loans $ 550,704 286,703 322,228 302,473 291,813 193,830 sold

Gross fees ^ $ 16,381 9,490 9,953 9,392 8,485 5,695 (10)

Gross fees asa percentage 2.97 % 3.31 % 3.09 % 3.11 % 2.91 % 2.94 %of loansoriginated

Net gain onresidential $ 19,619 8,583 6,044 7,402 6,011 4,878 mortgageloans sold

Investmentgains(losses) on $ (128) 463 68 417 (4,466) (1,960) sales ofsecurities,net ^(15)

Brokerageaccountassets, at $ 4,499,856 4,000,643 4,636,441 4,355,429 4,287,985 4,122,980 quarter end ^(11)

Trust accountmanaged $ 2,908,131 2,714,582 2,942,811 2,530,356 2,425,791 2,263,095 assets, atquarter end

Core deposits $ 21,391,794 18,604,262 17,617,479 17,103,470 16,503,686 16,340,763 ^(12)

Core depositsto total 75.8 % 75.9 % 76.2 % 74.7 % 74.9 % 77.1 %funding ^(12)

Risk-weighted $ 24,937,535 24,600,490 23,911,064 23,370,342 22,706,512 22,001,959 assets

Number of 113 111 111 114 114 114 offices

Total coredeposits per $ 189,308 167,606 158,716 150,030 144,769 143,340 office

Total assetsper full-time $ 12,936 11,422 11,180 11,217 11,241 10,997 equivalentemployee

Annualizedrevenues perfull-time $ 426.9 414.3 404.6 449.8 441.0 415.9 equivalentemployee

Annualizedexpenses perfull-time $ 205.4 215.6 208.1 214.8 216.9 199.0 equivalentemployee

Number ofemployees 2,577.5 2,562.0 2,487.0 2,456.0 2,361.0 2,324.0 (full-timeequivalent)

Associateretention 94.5 % 93.5 % 92.8 % 93.2 % 93.0 % 92.8 %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 Six months ended

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



Net interest $ 200,657 193,552 188,918 394,209 376,164 income



Noninterest 72,954 70,377 70,682 143,331 121,745 income

Total revenues 273,611 263,929 259,600 537,540 497,909

Less:Investment(gains) losses 128 (463) 4,466 (335) 6,426 on sales ofsecurities, net

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

Total revenuesexcluding theimpact of $ 273,739 263,466 265,602 537,205 505,871 adjustmentsnoted above



Noninterest $ 131,605 137,349 127,686 268,954 241,737 expense

Less: Otherreal estate 2,888 2,415 2,523 5,303 2,769 (ORE) expense

FHLBrestructuring 2,870 - - 2,870 - charges

Branchrationalization - - 3,189 - 3,189 charges

Noninterestexpenseexcluding the $ 125,847 134,934 121,974 260,781 235,779 impact ofadjustmentsnoted above



Pre-tax income $ 73,674 26,691 124,719 100,365 241,793

Provision for 68,332 99,889 7,195 168,221 14,379 credit losses

Pre-taxpre-provision 142,006 126,580 131,914 268,586 256,172 income

Adjustments 5,886 1,952 11,714 7,838 13,920 noted above

Adjustedpre-tax $ 147,892 128,532 143,628 276,424 270,092 pre-provisionincome^(14)





Noninterest $ 72,954 70,377 70,682 143,331 121,745 income

Less:Adjustments as 128 (463) 6,002 (335) 7,962 noted above

Noninterestincomeexcluding the $ 73,082 69,914 76,684 142,996 129,707 impact ofadjustmentsnoted above



Efficiency 48.10 % 52.04 % 49.19 % 50.03 % 48.55 %ratio ^(4)

Adjustments as (2.13) % (0.83) % (3.27) % (1.49) % (1.94) %noted above

Efficiencyratio(excluding 45.97 % 51.21 % 45.92 % 48.54 % 46.61 %adjustmentsnoted above)



Total average $ 32,785,391 28,237,642 25,915,971 30,511,516 25,485,355 assets



Noninterestincome to 0.89 % 1.00 % 1.09 % 0.94 % 0.96 %average assets^(1)

Adjustments as 0.01 % - % 0.10 % - % 0.07 %noted above

Noninterestincome(excludingadjustments 0.90 % 1.00 % 1.19 % 0.94 % 1.03 %noted above) toaverage assets^(1)



Noninterestexpense to 1.61 % 1.96 % 1.98 % 1.77 % 1.91 %average assets^(1)

Adjustments as (0.07) % (0.04) % (0.09) % (0.05) % (0.04) %noted above

Noninterestexpense(excludingadjustments 1.54 % 1.92 % 1.89 % 1.72 % 1.87 %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 June March December September June Marchthousands, except pershare data) 2020 2020 2019 2019 2019 2019

Net income $ 62,444 28,356 96,079 110,521 100,321 93,960

Investment (gains)losses on sales of 128 (463) (68) (417) 4,466 1,960 securities, net

Sale of non-prime - - - - 1,536 - automobile portfolio

ORE expense 2,888 2,415 804 655 2,523 246

Branchrationalization - - - - 3,189 - charges

FHLB restructuring 2,870 - - - - - charges

Tax effect onadjustments noted (1,539) (510) (192) (62) (3,062) (577) above ^(18)

Net income excludingadjustments noted $ 66,791 29,798 96,623 110,697 108,973 95,589 above



Basic earnings per $ 0.83 0.37 1.26 1.45 1.31 1.22 common share

Adjustment due toinvestment (gains) - - - (0.01) 0.06 0.03 losses on sales ofsecurities, net

Adjustment due tosale of non-prime - - - - 0.02 - automobile portfolio

Adjustment due to ORE 0.04 0.03 0.01 0.01 0.04 - expense

Adjustment due tobranch consolidation - - - - 0.04 - expense

Adjustment due toFHLB restructuring 0.04 - - - - - charges

Adjustment due to taxeffect on adjustments (0.02) (0.01) - - (0.04) (0.01) noted above ^(18)

Basic earnings percommon share $ 0.89 0.39 1.27 1.45 1.43 1.24 excluding adjustmentsnoted above



Diluted earnings per $ 0.83 0.37 1.26 1.44 1.31 1.22 common share

Adjustment due toinvestment (gains) - - - (0.01) 0.06 0.03 losses on sales ofsecurities, net

Adjustment due tosale of non-prime - - - - 0.02 - automobile portfolio

Adjustment due to ORE 0.04 0.03 0.01 0.01 0.03 - expense

Adjustment due tobranch consolidation - - - - 0.04 - expense

Adjustment due toFHLB restructuring 0.04 - - - - - charges

Adjustment due to taxeffect on adjustments (0.02) (0.01) - 0.01 (0.04) (0.01) noted above ^(18)

Diluted earnings percommon shareexcluding the $ 0.89 0.39 1.27 1.45 1.42 1.24 adjustments notedabove



Revenue per diluted $ 3.63 3.47 3.32 3.64 3.39 3.09 common share

Adjustments as noted - - - (0.01) 0.08 0.03 above

Revenue per dilutedcommon share $ 3.63 3.47 3.32 3.63 3.47 3.12 excluding adjustmentsnoted above



Equity method investment ^(17)

Fee income from BHG, $ 17,208 15,592 12,312 32,248 32,261 13,290 net of amortization

Funding cost to 2,134 2,122 2,345 2,366 2,399 2,379 support investment

Pre-tax impact of BHG 15,074 13,470 9,967 29,882 29,862 10,911

Income tax expense at 3,940 3,521 2,605 7,811 7,806 2,852 statutory rates

Earnings attributable $ 11,134 9,949 7,362 22,071 22,056 8,059 to BHG



Basic earnings percommon share $ 0.15 0.13 0.10 0.29 0.29 0.10 attributable to BHG

Diluted earnings percommon share $ 0.15 0.13 0.10 0.29 0.29 0.10 attributable to BHG



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

Six months ended

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

Net income $ 90,800 194,281

Investment (gains) losses on sales of securities, net (335) 6,426

Sale of non-prime automobile portfolio - 1,536

ORE expense 5,303 2,769

Branch consolidation expense - 3,189

FHLB restructuring charges 2,870 -

Tax effect on adjustments noted above ^(18) (2,049) (3,639)

Net income excluding adjustments noted above $ 96,589 204,562



Basic earnings per common share $ 1.20 2.54

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

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

Adjustment due to ORE expense 0.07 0.04

Adjustment due to branch consolidation expense - 0.04

Adjustment due to FHLB restructuring charges 0.04 -

Adjustment due to tax effect on adjustments noted above (0.03) (0.05) ^(18)

Basic earnings per common share excluding adjustments $ 1.28 2.67 noted above



Diluted earnings per common share 1.20 2.53

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

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

Adjustment due to ORE expense 0.07 0.04

Adjustment due to branch rationalization charges - 0.04

Adjustment due to FHLB restructuring charges 0.04 -

Adjustment due to tax effect on adjustments noted above (0.03) (0.05) ^(18)

Diluted earnings per common share excluding the $ 1.28 2.66 adjustments noted above



Revenue per diluted common share $ 7.11 6.48

Adjustments as noted above (0.01) 0.08

Revenue per diluted common share excluding adjustments $ 7.10 6.56 noted above



Equity method investment ^(17)

Fee income from BHG, net of amortization $ 32,800 45,551

Funding cost to support investment 4,256 4,778

Pre-tax impact of BHG 28,544 40,773

Income tax expense at statutory rates 7,461 10,658

Earnings attributable to BHG $ 21,083 30,115



Basic earnings per common share attributable to BHG $ 0.28 0.39

Diluted earnings per common share attributable to BHG $ 0.28 0.39



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 Six months ended

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



Return onaverage 0.77 % 0.40 % 1.55 % 0.60 % 1.54 %assets ^(1)

Adjustmentsas noted 0.05 % 0.02 % 0.14 % 0.04 % 0.08 %above

Return onaverageassetsexcluding 0.82 % 0.42 % 1.69 % 0.64 % 1.62 %adjustmentsnoted above ^(1)



Tangible assets:

Total assets $ 33,342,112 $ 29,264,180 $ 26,540,355 $ 33,342,112 $ 26,540,355

Less: (1,819,811) (1,819,811) (1,807,121) (1,819,811) (1,807,121) Goodwill

Core depositand other (47,131) (48,610) (41,578) (47,131) (41,578) intangibleassets

Net tangible $ 31,475,170 $ 27,395,759 $ 24,691,656 $ 31,475,170 $ 24,691,656 assets



Tangible equity:

Totalstockholders' $ 4,695,647 $ 4,385,128 $ 4,176,361 $ 4,695,647 $ 4,176,361 equity

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

Total commonstockholders' 4,478,015 4,385,128 4,176,361 4,478,015 4,176,361 equity

Less: (1,819,811) (1,819,811) (1,807,121) (1,819,811) (1,807,121) Goodwill

Core depositand other (47,131) (48,610) (41,578) (47,131) (41,578) intangibleassets

Net tangible $ 2,611,073 $ 2,516,707 $ 2,327,662 $ 2,611,073 $ 2,327,662 common equity



Ratio oftangiblecommon equity 8.30 % 9.19 % 9.43 % 8.30 % 9.43 %to tangibleassets



Averagetangible assets:

Average $ 32,785,391 $ 28,237,642 $ 25,915,971 $ 30,511,516 $ 25,485,355 assets

Less: Average (1,819,811) (1,819,811) (1,807,121) (1,819,811) (1,807,121) goodwill

Average coredeposit andother (48,421) (50,252) (43,025) (49,337) (44,171) intangibleassets

Net averagetangible $ 30,917,159 $ 26,367,579 $ 24,065,825 $ 28,642,368 $ 23,634,063 assets



Return onaverage 0.77 % 0.40 % 1.55 % 0.60 % 1.54 %assets ^(1)

Adjustmentdue togoodwill,core deposit 0.04 % 0.03 % 0.12 % 0.04 % 0.12 %and otherintangibleassets

Return onaverage 0.81 % 0.43 % 1.67 % 0.64 % 1.66 %tangibleassets ^(1)

Adjustmentsas noted 0.06 % 0.02 % 0.15 % 0.04 % 0.09 %above

Return onaveragetangibleassets 0.87 % 0.45 % 1.82 % 0.68 % 1.75 %excludingadjustmentsnoted above ^(1)



Averagetangiblecommon stockholders'equity:

Averagestockholders' $ 4,499,438 $ 4,417,155 $ 4,117,754 $ 4,458,296 $ 4,067,842 equity

Less: Averagepreferred (59,586) - - (29,793) - stockholders'equity

Averagecommon 4,439,852 4,417,155 4,117,754 4,428,503 4,067,842 stockholders'equity

Less: Average (1,819,811) (1,819,811) (1,807,121) (1,819,811) (1,807,121) goodwill

Average coredeposit andother (48,421) (50,252) (43,025) (49,337) (44,171) intangibleassets

Net averagetangible $ 2,571,620 $ 2,547,092 $ 2,267,608 $ 2,559,355 $ 2,216,550 common equity



Return onaverage 5.58 % 2.58 % 9.77 % 4.10 % 9.63 %equity^ (1)

Adjustmentdue toaverage 0.08 % - % - % 0.02 % - %preferredstockholders'equity

Return onaverage 5.66 % 2.58 % 9.77 % 4.12 % 9.63 %common equity^(1)

Adjustmentdue togoodwill,core deposit 4.11 % 1.90 % 7.97 % 3.01 % 8.04 %and otherintangibleassets

Return onaveragetangible 9.77 % 4.48 % 17.74 % 7.13 % 17.68 %common equity^(1)

Adjustmentsas noted 0.68 % 0.23 % 1.54 % 0.46 % 0.93 %above

Return onaveragetangiblecommon equity 10.45 % 4.71 % 19.28 % 7.59 % 18.61 %excludingadjustmentsnoted above ^(1)



Book valueper common $ 59.05 $ 57.85 $ 54.29 $ 59.05 $ 54.29 share atquarter end

Adjustmentdue togoodwill,core deposit (24.62) (24.65) (24.03) (24.62) (24.03) and otherintangibleassets

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



Allowance forcredit losseson loans as a 1.27 % 1.09 % 0.48 % 1.27 % 0.48 %percent oftotal loans

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

Allowance asadjusted forthe aboveexclusion of 1.41 % 1.09 % 0.48 % 1.41 % 0.48 %PPP loansfrom totalloans



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



1. Ratios are presented on an annualized basis.

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

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

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

5. Troubled debt restructurings include loans where the company, as a result ofthe borrower's financial difficulties, has granted a credit concession to theborrower (i.e., interest only payments for a significant period of time,extending the maturity of the loan, etc.). All of these loans continue toaccrue interest at the contractual rate. Troubled debt restructurings do notinclude, beginning with the quarter ended March 31, 2020, loans for which theCompany has granted a deferral of interest and/or principal or othermodification pursuant to the guidance issued by the FDIC providing for reliefunder the Coronavirus Aid, Relief and Economic Security Act.

6. Average risk ratings are based on an internal loan review system whichassigns a numeric value of 10 to 100 to all loans to commercial entities basedon their underlying risk characteristics as of the end of each quarter. Therisk rating scale was changed to allow for granularity, if needed, incriticized and classified risk ratings to distinguish accrual status orstructural loan issues. A "10" risk rating is assigned to credits that exhibitExcellent 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 (whichare charged-off immediately). Additionally, loans rated "80" or worse that arenot 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 byannualizing quarter-to-date net loan charge-offs and dividing the result byaverage loans for the quarter-to-date period.

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

Equity to total assets - End of period total stockholders' equity as apercentage 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 otherintangibles as a percentage of end of period assets less end of periodgoodwill, core deposit and other intangibles.

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

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

Tier I common equity to risk weighted assets - Tier 1 capital (pursuant torisk-based capital guidelines) less the amount of any preferred stock orsubordinated indebtedness that is considered as a component of Tier 1 capitalas 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 sharecomputed by dividing total common stockholders' equity, less goodwill, coredeposit and other intangibles by common shares outstanding.

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

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

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

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

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

15. Represents investment gains (losses) on sales and impairments, netoccurring as a result of gains or losses incurred as the result of a change inmanagement's intention to sell a bond prior to the recovery of its amortizedcost basis.

16. The dividend payout ratio is calculated as the sum of the annualizeddividend rate for dividends paid on common shares divided by the trailing12-months fully diluted earnings per common share as of the dividenddeclaration date.

17. Earnings from equity method investment includes the impact of the issuanceof 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 FinancialInstitutions Examination Council's Uniform Bank Performance Report.

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20200721005949/en/

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