Business Wire | Jan 19, 2021 05:16PM EST

PNFP Reports Diluted EPS of $1.42, ROAA of 1.24% and ROTCE of 15.37% For 4Q 2020

Jan. 19, 2021

NASHVILLE, Tenn.--(BUSINESS WIRE)--Jan. 19, 2021--Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported net income per diluted common share of $1.42 for the quarter ended Dec. 31, 2020, compared to net income per diluted common share of $1.26 for the quarter ended Dec. 31, 2019, an increase of 12.7 percent. Excluding gains and losses on the sale of investment securities and ORE expense for the three months ended Dec. 31, 2020 and 2019 and $15.0 million of FHLB restructuring and hedge termination charges for the three months ended Dec. 31, 2020, net income per diluted common share was $1.58 for the three months ended Dec. 31, 2020, compared to $1.27 for the three months ended Dec. 31, 2019, a year-over-year increase of 24.4 percent.

Net income per diluted common share was $4.03 for the year ended Dec. 31, 2020, compared to net income per diluted common share of $5.22 for the year ended Dec. 31, 2019, a decrease of 22.8 percent. Excluding gains and losses on the sale of investment securities and ORE expense for the years ended Dec. 31, 2020 and 2019, $19.8 million of FHLB restructuring and hedge termination charges for the year ended Dec. 31, 2020, and branch rationalization charges and a loss from the sale of Pinnacle Bank's non-prime automobile portfolio for the year ended Dec. 31, 2019, net income per diluted common share was $4.30 in 2020, compared to $5.37 in 2019, a year-over-year decrease of 19.9 percent.

"As we all know, the 2020 operating environment was very challenging," said M. Terry Turner, Pinnacle's president and chief executive officer. "However, the unique commitment our associates possess for this firm and our focus on growing revenue resulted in very strong core performance in the fourth quarter.

"In spite of all the hardships in 2020, we are very pleased to report diluted earnings per share growth over 12 percent (over 24 percent on an adjusted basis) over the fourth quarter of 2019. Additionally, we increased our book value per share by 8.6 percent between Dec. 31, 2020 and Dec. 31, 2019, while tangible book value per share increased 14.8 percent during that same time. Our hiring pipelines continue to grow across our markets as we remain excited about the opportunity to produce outsized earnings and tangible book value per share growth going into 2021."

BALANCE SHEET GROWTH:

* Loans at Dec. 31, 2020 were $22.4 billion, an increase of $2.6 billion from Dec. 31, 2019, reflecting year-over-year growth of 13.3 percent. Loans at Dec. 31, 2020 decreased approximately $52.9 million from Sept. 30, 2020. Loan volumes at Dec. 31, 2020 include approximately $1.8 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 was 4.64 percent for the fourth quarter of 2020, inclusive of $19.4 million of loan fee accretion recognized in the quarter. At Dec. 31, 2020, there were $40.7 million in SBA PPP loan fees remaining, which should be accreted into net interest income through the mid-year 2022 as these loans are repaid and/or are forgiven under the PPP. PPP loans decreased by $452.1 million between the third and fourth quarters of 2020. Excluding PPP loans, total loans increased by $399.2 million during the same period, or 7.9 percent on an annualized basis. Average loans were $22.5 billion for the three months ended Dec. 31, 2020, up $31.5 million from the three months ended Sept. 30, 2020, a linked-quarter annualized growth rate of 0.6 percent. Excluding the impact of $2.1 billion and $2.2 billion of average PPP loans outstanding during the three months ended Dec. 31, 2020 and Sept. 30, 2020, respectively, average loans were $20.4 billion for the three months ended Dec. 31, 2020, up $155.5 million from $20.3 billion for the three months ended Sept. 30, 2020, a linked-quarter annualized growth rate of 3.1 percent. At Dec. 31, 2020, the remaining discount associated with fair value accounting adjustments on acquired loans was $27.8 million, compared to $32.3 million at Sept. 30, 2020. * Deposits at Dec. 31, 2020 were a record $27.7 billion, an increase of $7.5 billion from Dec. 31, 2019, reflecting year-over-year growth of 37.3 percent. Deposits at Dec. 31, 2020 increased $1.2 billion from Sept. 30, 2020, reflecting a linked-quarter annualized growth rate of 17.5 percent. Average deposits were $27.2 billion for the three months ended Dec. 31, 2020, compared to $26.4 billion for the three months ended Sept. 30, 2020, a linked-quarter annualized growth rate of 12.8 percent. Core deposits were $23.5 billion at Dec. 31, 2020, compared to $17.6 billion at Dec. 31, 2019 and $22.0 billion at Sept. 30, 2020. The linked-quarter annualized growth rate of core deposits in the fourth quarter of 2020 was 27.4 percent.

"We are also very pleased with loan growth during the fourth quarter given the elevated paydowns and liquidity on some of our clients' balance sheets," Turner said. "We are nowhere near returning to pre-pandemic loan growth levels, but it is good to see progress this quarter. We continue to plan for high-single to low double-digit loan growth in 2021, excluding the impact of the PPP program. Having hired 85 new revenue producers in 2019 and 90 in 2020, we believe we are well positioned to grow loans as a result of the new clients we expect these associates will bring to us even in an economy that is likely to offer only limited organic loan demand in the near term.

"Deposit growth in 2020 was phenomenal. We will continue to seek new client deposits for our firm that reduce the level of wholesale funding that we currently deploy. We have initiated numerous deposit gathering tactics over the last two years aimed at core deposit generation and are gaining confidence that these activities will bring strong returns to us in the near future."

PROFITABILITY:

* Return on average assets was 1.24 percent for the fourth quarter of 2020, compared to 1.26 percent for the third quarter of 2020 and 1.38 percent for the fourth quarter of 2019. Fourth quarter 2020 return on average tangible assets amounted to 1.31 percent, compared to 1.33 percent for the third quarter of 2020 and 1.48 percent for the fourth quarter of 2019. Excluding the adjustments described above for both 2020 and 2019, return on average assets was 1.38 percent for the fourth quarter of 2020, compared to 1.28 percent for the third quarter of 2020 and 1.39 percent for the fourth quarter of 2019. Likewise, excluding those same adjustments, the firm's return on average tangible assets was 1.46 percent for the fourth quarter of 2020, compared to 1.36 percent for the third quarter of 2020 and 1.49 percent for the fourth quarter of 2019. * Return on average equity for the fourth quarter of 2020 amounted to 8.78 percent, compared to 8.92 percent for the third quarter of 2020 and 8.78 percent for the fourth quarter of 2019. Excluding preferred stockholders' equity for the three months ended Dec. 31, 2020 and Sept. 30, 2020, respectively, return on average common equity for the fourth quarter of 2020 amounted to 9.19 percent, compared to 9.35 percent for the third quarter of 2020 and 8.78 percent for the fourth quarter of 2019. Fourth quarter 2020 return on average tangible common equity amounted to 15.37 percent, compared to 15.85 percent for the third quarter of 2020 and 15.41 percent for the fourth quarter of 2019. Excluding the adjustments described above for both 2020 and 2019, return on average tangible common equity amounted to 17.11 percent for the fourth quarter of 2020, compared to 16.19 percent for the third quarter of 2020 and 15.49 percent for the fourth quarter of 2019.

"We are very excited about our profitability metrics in the fourth quarter," said Harold R. Carpenter, Pinnacle's chief financial officer. "We anticipate and hope for a more stable operating environment in 2021. Our aim for the coming year will be top-quartile peer performance with respect to return on tangible common equity and tangible book value per share growth. As always, we believe we have the right people in the right markets to deliver long-term sustainable growth."

MAINTAINING A STRONG BALANCE SHEET:

* Net charge-offs were $10.8 million for the quarter ended Dec. 31, 2020, compared to $13.1 million for the quarter ended Sept. 30, 2020 and $3.5 million for the quarter ended Dec. 31, 2019. Annualized net charge-offs as a percentage of average loans for the quarter ended Dec. 31, 2020 were 0.19 percent, compared to 0.23 percent for the quarter ended Sept. 30, 2020 and 0.07 percent for the fourth quarter of 2019. Net charge-offs as a percentage of average loans for the year ended Dec. 31, 2020 were 0.18 percent, compared to 0.09 percent for the year ended Dec. 31, 2019. * Nonperforming assets were 0.38 percent of total loans and ORE at Dec. 31, 2020, compared to 0.40 percent at Sept. 30, 2020 and 0.46 percent at Dec. 31, 2019. Nonperforming assets were $86.2 million at Dec. 31, 2020, compared to $90.8 million at Sept. 30, 2020 and $91.1 million at Dec. 31, 2019. There were $8.0 million of nonperforming assets attributable to the hotel, restaurant, retail and entertainment segments at Dec. 31, 2020, approximately 0.16 percent of these loans. * The classified asset ratio at Dec. 31, 2020 was 8.1 percent, compared to 9.9 percent at Sept. 30, 2020 and 13.4 percent at Dec. 31, 2019. Classified assets were $262.1 million at Dec. 31, 2020, compared to $307.8 million at Sept. 30, 2020 and $371.3 million at Dec. 31, 2019. * The allowance for credit losses represented 1.27 percent of total loans at Dec. 31, 2020, compared to 1.28 percent at Sept. 30, 2020 and 0.48 percent at Dec. 31, 2019. Excluding PPP loans, the allowance for credit losses as a percentage of loans was 1.38 percent at Dec. 31, 2020 and 1.43 percent at Sept. 30, 2020. The ratio of the allowance for credit losses to nonperforming loans at Dec. 31, 2020 was 386.1 percent compared to 404.3 percent at Sept. 30, 2020 and 153.8 percent at Dec. 31, 2019. Provision for credit losses was $7.2 million in the fourth quarter of 2020, compared to $16.3 million in the third quarter of 2020 and $4.6 million in the fourth quarter of 2019.

"Credit metrics remained strong all year," Carpenter said. "Our relationship managers and credit officers did significant work in 2020 to evaluate the risk in our loan book, particularly with respect to the various segments within our loan portfolio that we believe have been the most impacted by COVID-19, namely hotel, restaurants, retail and entertainment. During 2020, we regraded substantially all of our commercial loan portfolio. From a credit perspective, our belief is that we are well positioned as we enter 2021. Classified and nonperforming ratios are at the lowest levels in quite some time. We have worked with many borrowers through the modification process with the objective of getting those borrowers through the pandemic. Many of these borrowers operate in the segments most impacted by COVID-19. Each of these relationships has been painstakingly reviewed by our credit officers, modified as necessary and appropriately regraded."

REVENUES:

* Revenues for the quarter ended Dec. 31, 2020 were $304.4 million, an increase of $6.8 million from the $297.7 million recognized in the third quarter of 2020, an annualized growth rate of 9.1 percent. Revenues were up $50.8 million from the fourth quarter of 2019, a year-over-year growth rate of 20.0 percent. Revenue per fully diluted common share was at an all-time record of $4.03 for the three months ended Dec. 31, 2020, compared to $3.95 for the third quarter of 2020 and $3.32 for the fourth quarter of 2019, a 21.4 percent year-over-year growth rate. * Net interest income for the quarter ended Dec. 31, 2020 was $221.0 million, compared to $206.6 million for the third quarter of 2020 and $194.2 million for the fourth quarter of 2019, a year-over-year growth rate of 13.8 percent. Net interest margin was 2.97 percent for the fourth quarter of 2020, compared to 2.82 percent for the third quarter of 2020 and 3.35 percent for the fourth quarter of 2019. Impacting the firm's net interest income and net interest margin in the third and fourth quarters of 2020 was both the PPP and the firm's maintenance of additional on-balance sheet liquidity as a result of the pandemic. Average PPP loans outstanding during the fourth quarter of 2020 were $2.1 billion. Additionally, the firm also maintained approximately $3.0 billion in average excess liquidity, primarily in Federal funds sold and other cash equivalent balances. The firm's fourth quarter 2020 net interest margin was negatively impacted by approximately 30 basis points as a result of PPP loans and excess liquidity, compared to approximately 40 basis points in the third quarter of 2020. Included in net interest income for the fourth quarter of 2020 was $4.4 million of discount accretion associated with fair value adjustments, compared to $5.6 million of discount accretion recognized in the third quarter of 2020 and $10.6 million in the fourth quarter of 2019. The firm's net interest margin was positively impacted by approximately 6 basis points, 9 basis points and 19 basis points, respectively, because of fair value adjustment discount accretion in each of the fourth and third quarters of 2020 and the fourth quarter of 2019. There remains $20.8 million of purchase accounting discount accretion as of Dec. 31, 2020. * Noninterest income for the quarter ended Dec. 31, 2020 was $83.4 million, compared to $91.1 million for the quarter ended Sept. 30, 2020, a linked-quarter annualized decline of 33.5 percent. Compared to $59.5 million for the fourth quarter of 2019, noninterest income grew 40.3 percent year-over-year. Wealth management revenues, which include investment, trust and insurance services, were $14.3 million for the fourth quarter of 2020, compared to $13.0 million for the third quarter of 2020 and $12.4 million for the fourth quarter of 2019, a year-over-year increase of 14.8 percent. Income from the firm's investment in BHG was $24.3 million for the quarter ended Dec. 31, 2020, down from $26.4 million for the quarter ended Sept. 30, 2020 and up from $12.3 million for the quarter ended Dec. 31, 2019. Net gains on mortgage loans sold were $12.4 million during the quarter ended Dec. 31, 2020, down from $19.5 million for the quarter ended Sept. 30, 2020. Net gains on mortgage loans sold were up 104.9 percent from $6.0 million during the quarter ended Dec. 31, 2019. This dramatic year-over-year growth primarily reflects market conditions as well as the addition of revenue producing mortgage originators over the last 24 months. Other noninterest income was $24.0 million for the quarter ended Dec. 31, 2020, compared to $21.7 million for the quarter ended Sept. 30, 2020 and $19.5 million for the quarter ended Dec. 31, 2019, a year-over-year increase of 23.0 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 fourth quarter of 2.97 percent, which was negatively impacted by approximately 0.30 percent because of PPP loans and our excess liquidity," Carpenter said. "These items will continue to impact our reported return on assets, net interest margin and other profitability measures, but eventually their impact will diminish. Earning asset yields increased in the fourth quarter while deposit costs continued to decrease. Our average deposit costs were 0.33 percent in the fourth quarter, down 10 basis points from the third quarter. Our focus in 2021 will continue to be reducing our future deposit costs for both client and wholesale funding sources. We also anticipate that our liquidity levels will find their way to historical balance sheet liquidity levels over the next two years.

"With a year-over-year increase of approximately 40.0 percent, it was obviously a big growth year for fees. Several business units reported record results, led by a very robust mortgage market and BHG maintaining its strong performance throughout the pandemic. We also achieved double-digit growth in areas like our wealth management and SBA units. Looking forward, we are optimistic that BHG will have another great year in 2021 as their business flows are strong headed into the first quarter of 2021. We believe we also have a great hiring platform with more mortgage originators than ever and we operate in very attractive housing markets. Although we expect a modest decrease in mortgage revenues given our belief that long-term rates may increase in 2021, we do anticipate strong growth in total fee revenues in 2021."

OPERATING LEVERAGE AND OTHER HIGHLIGHTS:

* The firm's efficiency ratio for the fourth quarter of 2020 was 53.6 percent, compared to 48.5 percent for the third quarter of 2020 and 51.4 percent in the fourth quarter of 2019. The ratio of noninterest expenses to average assets was 1.89 percent for the fourth quarter of 2020, compared to 1.70 percent in the third quarter of 2020 and 1.88 percent in the fourth quarter of 2019. Excluding the adjustments described above for both 2020 and 2019, the efficiency ratio was 48.2 percent for the fourth quarter of 2020, compared to 47.3 percent for the third quarter of 2020 and 51.1 percent for the fourth quarter of 2019. Excluding ORE expense for 2020 and 2019 and FHLB restructuring and hedge termination charges for 2020, the ratio of noninterest expense to average assets was 1.70 percent for the fourth quarter of 2020, compared to 1.65 percent for the third quarter of 2020 and 1.86 percent for the fourth quarter of 2019. * Noninterest expense for the quarter ended Dec. 31, 2020 was $163.3 million, compared to $144.3 million in the third quarter of 2020 and $130.5 million in the fourth quarter of 2019, reflecting a year-over-year increase of 25.2 percent. Excluding ORE expense for 2020 and 2019 and FHLB restructuring and hedge termination charges for 2020, noninterest expense for the fourth quarter of 2020 increased 13.3 percent over the fourth quarter of 2019. Salaries and employee benefits were $90.0 million in the fourth quarter of 2020, compared to $90.1 million in the third quarter of 2020 and $81.4 million in the fourth quarter of 2019, reflecting a year-over-year increase of 10.5 percent. Incentive costs related to the firm's annual cash incentive plan amounted to approximately $13.4 million in the fourth quarter of 2020, compared to $15.2 million in the third quarter of 2020 and $10.9 million in the fourth quarter of last year. Costs related to the firm's annual cash incentive plan for the year ended December 31, 2020 are approximately 27 percent less than the costs of the plan in 2019. As a result of the firm's performance in 2020, the threshold for the plan's diluted EPS target was not met and thus resulted in a significant reduction in costs related to the plan. Early in the third quarter, the Company added an additional metric to the annual cash incentive plan to take into account new PPNR goals and initiatives for 2020. Based on the firm's results for the fiscal year ended 2020 and in consideration of the considerable effort the Company's associates put forth during unusually difficult circumstances in 2020, the Company's compensation committee approved an increase in the calculated award from 50 percent of target to 65 percent of target, which amounted to $6.8 million of additional expense in the fourth quarter of 2020. Incentive costs related to the Company's equity compensation plans amounted to approximately $4.6 million in the fourth quarter of 2020, compared to $4.4 million in the third quarter of 2020 and $6.1 million in the fourth quarter of last year. As was the case with the diluted EPS metric under the annual cash incentive plan, the Company did not meet its 2020 performance targets under its performance-based equity incentive plans for its named executive officers which resulted in the forfeiture of several tranches of performance-based awards granted to these individuals. These forfeitures contributed to the reduction in 2020 costs related to these plans. During the fourth quarter of 2020 and included in other noninterest expense, the firm prepaid $200.0 million in FHLB advances with a weighted average rate of 2.09 percent and a remaining weighted average term of 3.1 years resulting in $10.3 million of prepayment penalties that were recognized during the quarter. Additionally, the firm eliminated $99.0 million of cash flow hedges designed to hedge forecasted wholesale funding cash flows which the firm no longer deems likely to occur. The cash flow hedges were originally intended to remain in effect through various dates until Oct. 3, 2022. The firm recognized $4.7 million in expense in the fourth quarter of 2020 as a result of these early terminations. * The effective tax rate for the fourth quarter of 2020 was 17.2 percent, compared to 19.3 percent for the third quarter of 2020 and 18.9 percent for the fourth quarter of 2019. Contributing to the reduction in the effective tax rate in the fourth quarter of 2020 was an increase in policy benefits from the firm's bank-owned life insurance policies and an increase in tax-exempt interest income. The effective tax rate for the year ended Dec. 31, 2020 was 15.9 percent. The firm believes the effective tax rate for 2021 will increase modestly primarily due to increased performance next year.

"Expenses in the fourth quarter of 2020 were higher than anticipated due primarily to the compensation committee's decision to increase the annual cash incentive plan award from 50 percent of target to 65 percent," Carpenter said. "Given the significant effort of our associates in 2020, our board's compensation committee determined a modest increase in the award was warranted. For 2021, the performance targets for our annual cash plan are likely to be similar to our original targets in 2020 in that they will be designed to achieve top quartile performance within our peer group. As we consider expense run rates for 2021, with the expected increase in incentive costs, our belief is that our 2021 expense growth will result in a high-single digit percentage increase in comparison to total noninterest expense for 2020."

BOARD OF DIRECTORS DECLARES DIVIDENDS AND AUTHORIZE SHARE REPURCHASE PLAN

On Jan. 19, 2021, Pinnacle Financial's Board of Directors increased the quarterly cash dividend to $0.18 per common share to be paid on Feb. 26, 2021 to common shareholders of record as of the close of business on Feb. 5, 2021. Additionally, the 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 March 1, 2021 to shareholders of record at the close of business on Feb. 14, 2021. 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.

The firm also announced that its board of directors has authorized a new share repurchase plan for up to $125 million of the Company's common stock. Repurchases of the Company's common stock will be made in accordance with applicable laws and may be made at management's discretion from time to time in the open market, through privately negotiated transactions or otherwise. The board authorized the repurchase program to remain in effect through March 31, 2022, unless the entire repurchase amount has been acquired before that date.

The share repurchase program may be extended, modified, amended, suspended or discontinued at any time at the Company's discretion and does not commit the Company to repurchase shares of its common stock. The actual timing, number and value of the shares to be purchased under the program will be determined by the Company at its discretion and will depend on a number of factors, including the performance of the Company's stock price, the Company's ongoing capital planning considerations, general market and other conditions, applicable legal requirements and compliance with the terms of the Company's outstanding indebtedness.

WEBCAST AND CONFERENCE CALL INFORMATION

Pinnacle will host a webcast and conference call at 8:30 a.m. CT on Jan. 20, 2021, to discuss fourth 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 $34.9 billion in assets as of Dec. 31, 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 speed with which the COVID-19 vaccines can be widely distributed, those vaccines efficacy against the virus and public acceptance of the vaccines; (iv) 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; (v) the inability of Pinnacle Financial, or entities in which it has significant investments, like BHG, to maintain the long-term historical growth rate of its, or such entities', loan portfolio; (vi) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (vii) effectiveness of Pinnacle Financial's asset management activities in improving, resolving or liquidating lower-quality assets; (viii) 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; (ix) 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; (x) 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; (xi) the results of regulatory examinations; (xii) Pinnacle Financial's ability to identify potential candidates for, consummate, and achieve synergies from, potential future acquisitions; (xiii) difficulties and delays in integrating acquired businesses or fully realizing costs savings and other benefits from acquisitions; (xiv) BHG's ability to profitably grow its business and successfully execute on its business plans; (xv) risks of expansion into new geographic or product markets; (xvi) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including goodwill or other intangible assets; (xvii) the ineffectiveness of Pinnacle Bank's hedging strategies, or the unexpected counterparty failure or hedge failure of the underlying hedges; (xviii) 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; (xix) deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xx) 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; (xxi) approval of the declaration of any dividend by Pinnacle Financial's board of directors; (xxii) 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; (xxiii) 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; (xxiv) 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; (xxv) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, like BHG, including regulatory or legislative developments; (xxvi) the availability of and access to capital; (xxvii) 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 (xxviii) 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 charges, hedge termination charges, 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)

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

ASSETS

Cash and noninterest-bearing due $ 203,296 $ 179,231 $ 157,901 from banks

Restricted cash 223,788 247,761 137,045

Interest-bearing due from banks 3,522,224 2,604,646 210,784

Federal funds sold and other 12,141 11,687 20,977

Cash and cash equivalents 3,961,449 3,043,325 526,707

Securities available-for-sale, at 3,586,681 3,463,422 3,539,995 fair value

Securities held-to-maturity (fairvalue of $1.1 billion, net ofallowance for credit losses of 1,028,359 1,039,650 188,996 $191,000 at both Dec. 31, 2020 andSept. 30, 2020, and $201.2 millionDec. 31, 2019, respectively)

Consumer loans held-for-sale 87,821 82,748 81,820

Commercial loans held-for-sale 31,200 12,290 17,585

Loans 22,424,501 22,477,409 19,787,876

Less allowance for credit losses (285,050 ) (288,645 ) (94,777 )

Loans, net 22,139,451 22,188,764 19,693,099

Premises and equipment, net 290,001 287,711 273,932

Equity method investment 308,556 289,301 278,037

Accrued interest receivable 104,078 101,762 84,462

Goodwill 1,819,811 1,819,811 1,819,811

Core deposits and other intangible 42,336 44,713 51,130 assets

Other real estate owned 12,360 19,445 29,487

Other assets 1,520,757 1,431,989 1,220,435

Total assets $ 34,932,860 $ 33,824,931 $ 27,805,496

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits:

Noninterest-bearing $ 7,392,325 $ 7,050,670 $ 4,795,476

Interest-bearing 5,689,095 4,995,769 3,630,168

Savings and money market accounts 11,099,523 10,513,645 7,813,939

Time 3,524,632 3,983,872 3,941,445

Total deposits 27,705,575 26,543,956 20,181,028

Securities sold under agreements 128,164 127,059 126,354 to repurchase

Federal Home Loan Bank advances 1,087,927 1,287,738 2,062,534

Subordinated debt and other 670,575 670,273 749,080 borrowings

Accrued interest payable 24,934 26,101 42,183

Other liabilities 411,074 382,496 288,569

Total liabilities 30,028,249 29,037,623 23,449,748

Preferred stock, no par value,10.0 million shares authorized;225,000 shares non-cumulativeperpetual preferred stock, SeriesB, liquidation preference $225.0 217,126 217,126 - million, issued and outstanding atDec. 31, 2020 and Sept. 30, 2020,respectively and no shares issuedand outstanding at Dec. 31, 2019

Common stock, par value $1.00,180.0 million shares authorized;75.9 million, 75.8 million and76.6 million shares issued and 75,850 75,835 76,564 outstanding at Dec. 31, 2020,Sept. 30, 2020 and Dec. 31, 2019,respectively

Additional paid-in capital 3,028,063 3,023,430 3,064,467

Retained earnings 1,407,723 1,312,929 1,184,183

Accumulated other comprehensive 175,849 157,988 30,534 income, net of taxes

Total stockholders' equity 4,904,611 4,787,308 4,355,748

Total liabilities and $ 34,932,860 $ 33,824,931 $ 27,805,496 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

Year ended

December 31, 2020

September 30, 2020

December 31, 2019

December 31, 2020

December 31, 2019

Interest income:

Loans, including fees

$

232,561

$

224,482

$

241,209

$

919,744

$

955,388

Securities

Taxable

7,530

8,276

10,211

35,663

46,649

Tax-exempt

15,446

15,001

13,597

58,867

51,138

Federal funds sold and other

1,510

1,429

3,436

6,768

14,761

Total interest income

257,047

249,188

268,453

1,021,042

1,067,936

Interest expense:

Deposits

22,721

28,401

55,905

135,547

231,641

Securities sold under agreements to repurchase

64

77

131

350

570

FHLB advances and other borrowings

13,277

14,116

18,245

63,357

69,583

Total interest expense

36,062

42,594

74,281

199,254

301,794

Net interest income

220,985

206,594

194,172

821,788

766,142

Provision for credit losses

7,180

16,333

4,644

191,734

27,283

Net interest income after provision for credit losses

213,805

190,261

189,528

630,054

738,859

Noninterest income:

Service charges on deposit accounts

8,486

9,854

9,094

34,282

36,769

Investment services

7,593

6,734

6,581

29,537

24,187

Insurance sales commissions

2,300

2,284

2,017

10,055

9,344

Gains on mortgage loans sold, net

12,387

19,453

6,044

60,042

24,335

Investment gains (losses) on sales, net

-

651

68

986

(5,941

)

Trust fees

4,382

3,986

3,835

16,496

14,184

Income from equity method investment

24,294

26,445

12,312

83,539

90,111

Other noninterest income

24,002

21,658

19,511

82,903

70,837

Total noninterest income

83,444

91,065

59,462

317,840

263,826

Noninterest expense:

Salaries and employee benefits

90,013

90,103

81,444

334,483

313,359

Equipment and occupancy

23,849

21,622

21,059

88,475

84,582

Other real estate, net

1,457

1,795

804

8,555

4,228

Marketing and other business development

2,979

2,321

4,298

10,693

13,251

Postage and supplies

1,998

1,761

2,407

7,819

8,144

Amortization of intangibles

2,377

2,417

2,896

9,793

9,908

Other noninterest expense

40,632

24,258

17,562

116,718

71,676

Total noninterest expense

163,305

144,277

130,470

576,536

505,148

Income before income taxes

133,944

137,049

118,520

371,358

497,537

Income tax expense

23,068

26,404

22,441

59,037

96,656

Net income

110,876

110,645

96,079

312,321

400,881

Preferred stock dividends

(3,798

)

(3,798

)

-

(7,596

)

-

Net income available to common shareholders

$

107,078

$

106,847

$

96,079

$

304,725

$

400,881

Per share information:

Basic net income per common share

$

1.42

$

1.42

$

1.26

$

4.04

$

5.25

Diluted net income per common share

$

1.42

$

1.42

$

1.26

$

4.03

$

5.22

Weighted average common shares outstanding:

Basic

75,253,862

75,240,664

76,018,739

75,376,489

76,364,303

Diluted

75,583,986

75,360,033

76,398,982

75,654,385

76,763,903

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 Year endedper sharedata)

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

Interest income:

Loans,including $ 232,561 $ 224,482 $ 241,209 $ 919,744 $ 955,388 fees

Securities

Taxable 7,530 8,276 10,211 35,663 46,649

Tax-exempt 15,446 15,001 13,597 58,867 51,138

Federalfunds sold 1,510 1,429 3,436 6,768 14,761 and other

Totalinterest 257,047 249,188 268,453 1,021,042 1,067,936 income

Interest expense:

Deposits 22,721 28,401 55,905 135,547 231,641

Securitiessold underagreements 64 77 131 350 570 torepurchase

FHLBadvances and 13,277 14,116 18,245 63,357 69,583 otherborrowings

Totalinterest 36,062 42,594 74,281 199,254 301,794 expense

Net interest 220,985 206,594 194,172 821,788 766,142 income

Provisionfor credit 7,180 16,333 4,644 191,734 27,283 losses

Net interestincome afterprovision 213,805 190,261 189,528 630,054 738,859 for creditlosses

Noninterest income:

Servicecharges on 8,486 9,854 9,094 34,282 36,769 depositaccounts

Investment 7,593 6,734 6,581 29,537 24,187 services

Insurancesales 2,300 2,284 2,017 10,055 9,344 commissions

Gains onmortgage 12,387 19,453 6,044 60,042 24,335 loans sold,net

Investmentgains - 651 68 986 (5,941 )(losses) onsales, net

Trust fees 4,382 3,986 3,835 16,496 14,184

Income fromequity 24,294 26,445 12,312 83,539 90,111 methodinvestment

Othernoninterest 24,002 21,658 19,511 82,903 70,837 income

Totalnoninterest 83,444 91,065 59,462 317,840 263,826 income

Noninterest expense:

Salaries andemployee 90,013 90,103 81,444 334,483 313,359 benefits

Equipmentand 23,849 21,622 21,059 88,475 84,582 occupancy

Other real 1,457 1,795 804 8,555 4,228 estate, net

Marketingand other 2,979 2,321 4,298 10,693 13,251 businessdevelopment

Postage and 1,998 1,761 2,407 7,819 8,144 supplies

Amortizationof 2,377 2,417 2,896 9,793 9,908 intangibles

Othernoninterest 40,632 24,258 17,562 116,718 71,676 expense

Totalnoninterest 163,305 144,277 130,470 576,536 505,148 expense

Incomebefore 133,944 137,049 118,520 371,358 497,537 income taxes

Income tax 23,068 26,404 22,441 59,037 96,656 expense

Net income 110,876 110,645 96,079 312,321 400,881

Preferredstock (3,798 ) (3,798 ) - (7,596 ) - dividends

Net incomeavailable to $ 107,078 $ 106,847 $ 96,079 $ 304,725 $ 400,881 commonshareholders

Per share information:

Basic netincome per $ 1.42 $ 1.42 $ 1.26 $ 4.04 $ 5.25 common share

Diluted netincome per $ 1.42 $ 1.42 $ 1.26 $ 4.03 $ 5.22 common share

Weightedaveragecommon sharesoutstanding:

Basic 75,253,862 75,240,664 76,018,739 75,376,489 76,364,303

Diluted 75,583,986 75,360,033 76,398,982 75,654,385 76,763,903

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)

December

September

June

March

December

September

2020

2020

2020

2020

2019

2019

Balance sheet data, at quarter end:

Commercial and industrial loans

$

6,239,588

6,144,949

6,293,709

6,752,317

6,290,296

6,002,285

Commercial real estate - owner occupied loans

2,802,227

2,748,075

2,708,306

2,650,170

2,669,766

2,595,837

Commercial real estate - investment loans

4,565,040

4,648,457

4,822,537

4,520,234

4,418,658

4,443,687

Commercial real estate - multifamily and other loans

638,344

571,995

561,481

550,338

620,794

669,721

Consumer real estate - mortgage loans

3,099,172

3,041,019

3,042,604

3,106,465

3,068,625

3,025,502

Construction and land development loans

2,901,746

2,728,439

2,574,494

2,520,937

2,430,483

2,253,303

Consumer and other loans

379,515

343,461

294,545

296,392

289,254

355,307

Paycheck protection program loans

1,798,869

2,251,014

2,222,624

-

-

-

Total loans

22,424,501

22,477,409

22,520,300

20,396,853

19,787,876

19,345,642

Allowance for credit losses

(285,050

)

(288,645

)

(285,372

)

(222,465

)

(94,777

)

(93,647

)

Securities

4,615,040

4,503,072

4,358,313

4,089,821

3,728,991

3,583,119

Total assets

34,932,860

33,824,931

33,342,112

29,264,180

27,805,496

27,547,834

Noninterest-bearing deposits

7,392,325

7,050,670

6,892,864

4,963,415

4,795,476

4,702,155

Total deposits

27,705,575

26,543,956

25,521,829

21,333,171

20,181,028

20,000,677

Securities sold under agreements to repurchase

128,164

127,059

194,553

186,548

126,354

95,402

FHLB advances

1,087,927

1,287,738

1,787,551

2,317,520

2,062,534

2,052,548

Subordinated debt and other borrowings

670,575

670,273

717,043

669,658

749,080

750,488

Total stockholders' equity

4,904,611

4,787,308

4,695,647

4,385,128

4,355,748

4,294,630

Balance sheet data, quarterly averages:

Total loans

$

22,524,683

22,493,192

22,257,168

20,009,288

19,599,620

19,216,835

Securities

4,567,872

4,420,280

4,194,811

3,814,543

3,662,829

3,507,363

Federal funds sold and other

3,621,623

3,279,248

2,618,832

807,796

717,927

802,326

Total earning assets

30,714,178

30,192,720

29,070,811

24,631,627

23,980,376

23,526,524

Total assets

34,436,765

33,838,716

32,785,391

28,237,642

27,604,774

27,134,163

Noninterest-bearing deposits

7,322,393

6,989,439

6,432,010

4,759,729

4,834,694

4,574,821

Total deposits

27,193,256

26,352,823

24,807,032

20,679,455

20,078,594

19,778,007

Securities sold under agreements to repurchase

121,331

147,211

191,084

141,192

109,127

134,197

FHLB advances

1,250,848

1,515,879

2,213,769

2,029,888

1,992,213

2,136,928

Subordinated debt and other borrowings

673,419

715,138

706,657

673,415

753,244

533,194

Total stockholders' equity

4,852,373

4,765,864

4,499,438

4,417,155

4,343,246

4,265,006

Statement of operations data, for the three months ended:

Interest income

$

257,047

249,188

251,738

263,069

268,453

275,749

Interest expense

36,062

42,594

51,081

69,517

74,281

79,943

Net interest income

220,985

206,594

200,657

193,552

194,172

195,806

Provision for credit losses

7,180

16,333

68,332

99,889

4,644

8,260

Net interest income after provision for credit losses

213,805

190,261

132,325

93,663

189,528

187,546

Noninterest income

83,444

91,065

72,954

70,377

59,462

82,619

Noninterest expense

163,305

144,277

131,605

137,349

130,470

132,941

Income before taxes

133,944

137,049

73,674

26,691

118,520

137,224

Income tax (benefit) expense

23,068

26,404

11,230

(1,665

)

22,441

26,703

Net income

110,876

110,645

62,444

28,356

96,079

110,521

Preferred stock dividends

(3,798

)

(3,798

)

-

-

-

-

Net income available to common shareholders

$

107,078

106,847

62,444

28,356

96,079

110,521

Profitability and other ratios:

Return on avg. assets (1)

1.24

%

1.26

%

0.77

%

0.40

%

1.38

%

1.62

%

Return on avg. equity (1)

8.78

%

8.92

%

5.58

%

2.58

%

8.78

%

10.28

%

Return on avg. common equity (1)

9.19

%

9.35

%

5.66

%

2.58

%

8.78

%

10.28

%

Return on avg. tangible common equity (1)

15.37

%

15.85

%

9.77

%

4.48

%

15.41

%

18.28

%

Common stock dividend payout ratio (16)

15.84

%

16.49

%

16.41

%

14.61

%

12.24

%

12.31

%

Net interest margin (2)

2.97

%

2.82

%

2.87

%

3.28

%

3.35

%

3.43

%

Noninterest income to total revenue (3)

27.41

%

30.59

%

26.66

%

26.67

%

23.44

%

29.67

%

Noninterest income to avg. assets (1)

0.96

%

1.07

%

0.89

%

1.00

%

0.85

%

1.21

%

Noninterest exp. to avg. assets (1)

1.89

%

1.70

%

1.61

%

1.96

%

1.88

%

1.94

%

Efficiency ratio (4)

53.64

%

48.47

%

48.10

%

52.04

%

51.44

%

47.75

%

Avg. loans to avg. deposits

82.83

%

85.35

%

89.72

%

96.76

%

97.61

%

97.16

%

Securities to total assets

13.21

%

13.31

%

13.07

%

13.98

%

13.41

%

13.01

%

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 December September June March December Septemberthousands) 2020 2020 2020 2020 2019 2019

Balance sheet data, at quarter end:

Commercial and $ 6,239,588 6,144,949 6,293,709 6,752,317 6,290,296 6,002,285 industrial loans

Commercial realestate - owner 2,802,227 2,748,075 2,708,306 2,650,170 2,669,766 2,595,837 occupied loans

Commercial realestate - investment 4,565,040 4,648,457 4,822,537 4,520,234 4,418,658 4,443,687 loans

Commercial realestate - 638,344 571,995 561,481 550,338 620,794 669,721 multifamily andother loans

Consumer realestate - mortgage 3,099,172 3,041,019 3,042,604 3,106,465 3,068,625 3,025,502 loans

Construction andland development 2,901,746 2,728,439 2,574,494 2,520,937 2,430,483 2,253,303 loans

Consumer and other 379,515 343,461 294,545 296,392 289,254 355,307 loans

Paycheck protection 1,798,869 2,251,014 2,222,624 - - - program loans

Total loans 22,424,501 22,477,409 22,520,300 20,396,853 19,787,876 19,345,642

Allowance for (285,050 ) (288,645 ) (285,372 ) (222,465 ) (94,777 ) (93,647 )credit losses

Securities 4,615,040 4,503,072 4,358,313 4,089,821 3,728,991 3,583,119

Total assets 34,932,860 33,824,931 33,342,112 29,264,180 27,805,496 27,547,834

Noninterest-bearing 7,392,325 7,050,670 6,892,864 4,963,415 4,795,476 4,702,155 deposits

Total deposits 27,705,575 26,543,956 25,521,829 21,333,171 20,181,028 20,000,677

Securities soldunder agreements to 128,164 127,059 194,553 186,548 126,354 95,402 repurchase

FHLB advances 1,087,927 1,287,738 1,787,551 2,317,520 2,062,534 2,052,548

Subordinated debtand other 670,575 670,273 717,043 669,658 749,080 750,488 borrowings

Total stockholders' 4,904,611 4,787,308 4,695,647 4,385,128 4,355,748 4,294,630 equity

Balance sheet data, quarterly averages:

Total loans $ 22,524,683 22,493,192 22,257,168 20,009,288 19,599,620 19,216,835

Securities 4,567,872 4,420,280 4,194,811 3,814,543 3,662,829 3,507,363

Federal funds sold 3,621,623 3,279,248 2,618,832 807,796 717,927 802,326 and other

Total earning 30,714,178 30,192,720 29,070,811 24,631,627 23,980,376 23,526,524 assets

Total assets 34,436,765 33,838,716 32,785,391 28,237,642 27,604,774 27,134,163

Noninterest-bearing 7,322,393 6,989,439 6,432,010 4,759,729 4,834,694 4,574,821 deposits

Total deposits 27,193,256 26,352,823 24,807,032 20,679,455 20,078,594 19,778,007

Securities soldunder agreements to 121,331 147,211 191,084 141,192 109,127 134,197 repurchase

FHLB advances 1,250,848 1,515,879 2,213,769 2,029,888 1,992,213 2,136,928

Subordinated debtand other 673,419 715,138 706,657 673,415 753,244 533,194 borrowings

Total stockholders' 4,852,373 4,765,864 4,499,438 4,417,155 4,343,246 4,265,006 equity

Statement of operations data, for the three months ended:

Interest income $ 257,047 249,188 251,738 263,069 268,453 275,749

Interest expense 36,062 42,594 51,081 69,517 74,281 79,943

Net interest income 220,985 206,594 200,657 193,552 194,172 195,806

Provision for 7,180 16,333 68,332 99,889 4,644 8,260 credit losses

Net interest incomeafter provision for 213,805 190,261 132,325 93,663 189,528 187,546 credit losses

Noninterest income 83,444 91,065 72,954 70,377 59,462 82,619

Noninterest expense 163,305 144,277 131,605 137,349 130,470 132,941

Income before taxes 133,944 137,049 73,674 26,691 118,520 137,224

Income tax 23,068 26,404 11,230 (1,665 ) 22,441 26,703 (benefit) expense

Net income 110,876 110,645 62,444 28,356 96,079 110,521

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

Net incomeavailable to common $ 107,078 106,847 62,444 28,356 96,079 110,521 shareholders

Profitability and other ratios:

Return on avg. 1.24 % 1.26 % 0.77 % 0.40 % 1.38 % 1.62 %assets ^(1)

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

Return on avg. 9.19 % 9.35 % 5.66 % 2.58 % 8.78 % 10.28 %common equity^ (1)

Return on avg.tangible common 15.37 % 15.85 % 9.77 % 4.48 % 15.41 % 18.28 %equity ^(1)

Common stockdividend payout 15.84 % 16.49 % 16.41 % 14.61 % 12.24 % 12.31 %ratio ^(16)

Net interest margin 2.97 % 2.82 % 2.87 % 3.28 % 3.35 % 3.43 %^ (2)

Noninterest incometo total revenue ^ 27.41 % 30.59 % 26.66 % 26.67 % 23.44 % 29.67 %(3)

Noninterest income 0.96 % 1.07 % 0.89 % 1.00 % 0.85 % 1.21 %to avg. assets ^(1)

Noninterest exp. to 1.89 % 1.70 % 1.61 % 1.96 % 1.88 % 1.94 %avg. assets ^(1)

Efficiency ratio ^ 53.64 % 48.47 % 48.10 % 52.04 % 51.44 % 47.75 %(4)

Avg. loans to avg. 82.83 % 85.35 % 89.72 % 96.76 % 97.61 % 97.16 %deposits

Securities to total 13.21 % 13.31 % 13.07 % 13.98 % 13.41 % 13.01 %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

December 31, 2020

December 31, 2019

Average Balances

Interest

Rates/ Yields

Average Balances

Interest

Rates/ Yields

Interest-earning assets

Loans (1) (2)

$

22,524,683

$

232,561

4.20

%

$

19,599,620

$

241,209

5.00

%

Securities

Taxable

2,235,953

7,530

1.34

%

1,827,719

10,211

2.22

%

Tax-exempt (2)

2,331,919

15,446

3.16

%

1,835,110

13,597

3.48

%

Federal funds sold and other

3,621,623

1,510

0.17

%

717,927

3,436

1.90

%

Total interest-earning assets

30,714,178

$

257,047

3.44

%

23,980,376

$

268,453

4.58

%

Nonearning assets

Intangible assets

1,863,696

1,869,116

Other nonearning assets

1,858,891

1,755,282

Total assets

$

34,436,765

$

27,604,774

Interest-bearing liabilities

Interest-bearing deposits:

Interest checking

5,232,181

3,086

0.23

%

3,425,866

8,755

1.01

%

Savings and money market

10,882,070

7,651

0.28

%

7,717,082

23,551

1.21

%

Time

3,756,612

11,984

1.27

%

4,100,952

23,599

2.28

%

Total interest-bearing deposits

19,870,863

22,721

0.45

%

15,243,900

55,905

1.45

%

Securities sold under agreements to repurchase

121,331

64

0.21

%

109,127

131

0.48

%

Federal Home Loan Bank advances

1,250,848

6,282

2.00

%

1,992,213

10,568

2.10

%

Subordinated debt and other borrowings

673,419

6,995

4.13

%

753,244

7,677

4.04

%

Total interest-bearing liabilities

21,916,461

36,062

0.65

%

18,098,484

74,281

1.63

%

Noninterest-bearing deposits

7,322,393

-

-

4,834,694

-

-

Total deposits and interest-bearing liabilities

29,238,854

$

36,062

0.49

%

22,933,178

$

74,281

1.29

%

Other liabilities

345,538

328,350

Stockholders' equity

4,852,373

4,343,246

Total liabilities and stockholders' equity

$

34,436,765

$

27,604,774

Netinterestincome

$

220,985

$

194,172

Net interest spread (3)

2.78

%

2.95

%

Net interest margin (4)

2.97

%

3.35

%

(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 $8.4 million of taxable equivalent income for the three months ended Dec. 31, 2020 compared to $8.1 million for the three months ended Dec. 31, 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 Dec. 31, 2020 would have been 2.95% compared to a net interest spread of 3.29% for the three months ended Dec. 31, 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) December 31, 2020 December 31, 2019

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

Interest-earning assets

Loans^ (1) (2) $ 22,524,683 $ 232,561 4.20 % $ 19,599,620 $ 241,209 5.00 %

Securities

Taxable 2,235,953 7,530 1.34 % 1,827,719 10,211 2.22 %

Tax-exempt ^(2) 2,331,919 15,446 3.16 % 1,835,110 13,597 3.48 %

Federal funds sold 3,621,623 1,510 0.17 % 717,927 3,436 1.90 %and other

Totalinterest-earning 30,714,178 $ 257,047 3.44 % 23,980,376 $ 268,453 4.58 %assets

Nonearning assets

Intangible assets 1,863,696 1,869,116

Other nonearning 1,858,891 1,755,282 assets

Total assets $ 34,436,765 $ 27,604,774



Interest-bearing liabilities

Interest-bearing deposits:

Interest checking 5,232,181 3,086 0.23 % 3,425,866 8,755 1.01 %

Savings and money 10,882,070 7,651 0.28 % 7,717,082 23,551 1.21 %market

Time 3,756,612 11,984 1.27 % 4,100,952 23,599 2.28 %

Totalinterest-bearing 19,870,863 22,721 0.45 % 15,243,900 55,905 1.45 %deposits

Securities soldunder agreements to 121,331 64 0.21 % 109,127 131 0.48 %repurchase

Federal Home Loan 1,250,848 6,282 2.00 % 1,992,213 10,568 2.10 %Bank advances

Subordinated debtand other 673,419 6,995 4.13 % 753,244 7,677 4.04 %borrowings

Totalinterest-bearing 21,916,461 36,062 0.65 % 18,098,484 74,281 1.63 %liabilities

Noninterest-bearing 7,322,393 - - 4,834,694 - - deposits

Total deposits andinterest-bearing 29,238,854 $ 36,062 0.49 % 22,933,178 $ 74,281 1.29 %liabilities

Other liabilities 345,538 328,350

Stockholders' 4,852,373 4,343,246 equity

Total liabilitiesand stockholders' $ 34,436,765 $ 27,604,774 equity

Net interest income $ 220,985 $ 194,172

Net interest spread 2.78 % 2.95 %^(3)

Net interest margin 2.97 % 3.35 %^(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 $8.4 million of taxable equivalent income for the three months endedDec. 31, 2020 compared to $8.1 million for the three months ended Dec. 31,2019. 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 Dec. 31, 2020 would have been2.95% compared to a net interest spread of 3.29% for the three months endedDec. 31, 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)

Year ended

Year Ended

December 31, 2020

December 31, 2019

Average Balances

Interest

Rates/ Yields

Average Balances

Interest

Rates/ Yields

Interest-earning assets

Loans (1) (2)

$

21,824,841

$

919,744

4.30

%

$

18,847,104

$

955,388

5.17

%

Securities

Taxable

2,136,437

35,663

1.67

%

1,791,663

46,649

2.60

%

Tax-exempt (2)

2,114,277

58,867

3.35

%

1,680,758

51,138

3.62

%

Federal funds sold and other

2,586,298

6,768

0.26

%

631,331

14,761

2.34

%

Total interest-earning assets

28,661,853

$

1,021,042

3.67

%

22,950,856

$

1,067,936

4.78

%

Nonearning assets

Intangible assets

1,867,007

1,859,548

Other nonearning assets

1,805,677

1,624,750

Total assets

$

32,334,537

$

26,435,154

Interest-bearing liabilities

Interest-bearing deposits:

Interest checking

4,602,683

19,542

0.42

%

3,236,907

36,901

1.14

%

Savings and money market

9,623,790

45,364

0.47

%

7,557,265

104,138

1.38

%

Time

4,162,523

70,641

1.70

%

3,978,688

90,602

2.28

%

Total interest-bearing deposits

18,388,996

135,547

0.74

%

14,772,860

231,641

1.57

%

Securities sold under agreements to repurchase

150,118

350

0.23

%

117,518

570

0.49

%

Federal Home Loan Bank advances

1,750,578

33,135

1.89

%

2,055,365

43,675

2.12

%

Subordinated debt and other borrowings

692,169

30,222

4.37

%

557,387

25,908

4.65

%

Total interest-bearing liabilities

20,981,861

199,254

0.95

%

17,503,130

301,794

1.72

%

Noninterest-bearing deposits

6,380,155

-

-

4,503,134

-

-

Total deposits and interest-bearing liabilities

27,362,016

$

199,254

0.73

%

22,006,264

$

301,794

1.37

%

Other liabilities

337,855

241,935

Stockholders' equity

4,634,666

4,186,955

Total liabilities and stockholders' equity

$

32,334,537

$

26,435,154

Netinterestincome

$

821,788

$

766,142

Net interest spread (3)

2.72

%

3.06

%

Net interest margin (4)

2.97

%

3.46

%

(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 $29.9 million of taxable equivalent income for the year ended Dec. 31, 2020 compared to $29.0 million for the year ended Dec. 31, 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 year ended Dec. 31, 2020 would have been 2.94% compared to a net interest spread of 3.41% for the year ended Dec. 31, 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 Year ended Year Endedthousands) December 31, 2020 December 31, 2019

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

Interest-earning assets

Loans^ (1) (2) $ 21,824,841 $ 919,744 4.30 % $ 18,847,104 $ 955,388 5.17 %

Securities

Taxable 2,136,437 35,663 1.67 % 1,791,663 46,649 2.60 %

Tax-exempt ^(2) 2,114,277 58,867 3.35 % 1,680,758 51,138 3.62 %

Federal funds sold 2,586,298 6,768 0.26 % 631,331 14,761 2.34 %and other

Totalinterest-earning 28,661,853 $ 1,021,042 3.67 % 22,950,856 $ 1,067,936 4.78 %assets

Nonearning assets

Intangible assets 1,867,007 1,859,548

Other nonearning 1,805,677 1,624,750 assets

Total assets $ 32,334,537 $ 26,435,154



Interest-bearing liabilities

Interest-bearing deposits:

Interest checking 4,602,683 19,542 0.42 % 3,236,907 36,901 1.14 %

Savings and money 9,623,790 45,364 0.47 % 7,557,265 104,138 1.38 %market

Time 4,162,523 70,641 1.70 % 3,978,688 90,602 2.28 %

Totalinterest-bearing 18,388,996 135,547 0.74 % 14,772,860 231,641 1.57 %deposits

Securities soldunder agreements to 150,118 350 0.23 % 117,518 570 0.49 %repurchase

Federal Home Loan 1,750,578 33,135 1.89 % 2,055,365 43,675 2.12 %Bank advances

Subordinated debtand other 692,169 30,222 4.37 % 557,387 25,908 4.65 %borrowings

Totalinterest-bearing 20,981,861 199,254 0.95 % 17,503,130 301,794 1.72 %liabilities

Noninterest-bearing 6,380,155 - - 4,503,134 - - deposits

Total deposits andinterest-bearing 27,362,016 $ 199,254 0.73 % 22,006,264 $ 301,794 1.37 %liabilities

Other liabilities 337,855 241,935

Stockholders' 4,634,666 4,186,955 equity

Total liabilitiesand stockholders' $ 32,334,537 $ 26,435,154 equity

Net interest income $ 821,788 $ 766,142

Net interest spread 2.72 % 3.06 %^(3)

Net interest margin 2.97 % 3.46 %^(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 $29.9 million of taxable equivalent income for the year ended Dec. 31,2020 compared to $29.0 million for the year ended Dec. 31, 2019. The tax-exemptbenefit has been reduced by the projected impact of tax-exempt income that willbe disallowed pursuant to IRS Regulations as of and for the then current periodpresented.

(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 year ended Dec. 31, 2020 would have been 2.94%compared to a net interest spread of 3.41% for the year ended Dec. 31, 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)

December

September

June

March

December

September

2020

2020

2020

2020

2019

2019

Asset quality information and ratios:

Nonperforming assets:

Nonaccrual loans

$

73,836

71,390

62,562

70,970

61,605

73,263

Other real estate (ORE) and

other nonperforming assets (NPAs)

12,360

19,445

22,105

27,182

29,487

30,049

Total nonperforming assets

$

86,196

90,835

84,667

98,152

91,092

103,312

Past due loans over 90 days and still accruing interest

$

2,362

1,313

1,982

1,990

1,615

2,450

Accruing troubled debt restructurings (5)

$

2,494

2,588

3,274

3,869

4,850

5,803

Accruing purchase credit deteriorated loans

$

14,091

14,346

14,616

13,984

13,249

12,887

Net loan charge-offs

$

10,775

13,057

5,384

10,155

3,515

4,866

Allowance for credit losses to nonaccrual loans

386.1

%

404.3

%

456.1

%

313.5

%

153.8

%

127.8

%

As a percentage of total loans:

Past due accruing loans over 30 days

0.19

%

0.11

%

0.09

%

0.17

%

0.18

%

0.24

%

Potential problem loans (6)

0.77

%

0.96

%

1.12

%

1.22

%

1.39

%

1.31

%

Allowance for credit losses (20)

1.27

%

1.28

%

1.27

%

1.09

%

0.48

%

0.48

%

Nonperforming assets to total loans, ORE and other NPAs

0.38

%

0.40

%

0.38

%

0.48

%

0.46

%

0.53

%

Classified asset ratio (Pinnacle Bank) (8)

8.1

%

9.9

%

11.2

%

12.0

%

13.4

%

13.5

%

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

0.19

%

0.23

%

0.10

%

0.20

%

0.07

%

0.10

%

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

45.1

45.2

45.1

45.0

44.9

45.3

44.4

4.5

4.4

4.4

4.5

Interest rates and yields:

Loans

4.20

%

4.04

%

4.16

%

4.84

%

5.00

%

5.21

%

Securities

2.27

%

2.38

%

2.59

%

2.82

%

2.85

%

3.00

%

Total earning assets

3.44

%

3.38

%

3.58

%

4.41

%

4.58

%

4.78

%

Total deposits, including non-interest bearing

0.33

%

0.43

%

0.55

%

0.99

%

1.10

%

1.25

%

Securities sold under agreements to repurchase

0.21

%

0.21

%

0.20

%

0.33

%

0.48

%

0.45

%

FHLB advances

2.00

%

1.82

%

1.73

%

2.06

%

2.10

%

2.15

%

Subordinated debt and other borrowings

4.13

%

3.99

%

4.42

%

4.96

%

4.04

%

4.22

%

Total deposits and interest-bearing liabilities

0.49

%

0.59

%

0.74

%

1.19

%

1.29

%

1.40

%

Capital and other ratios (8):

Pinnacle Financial ratios:

Stockholders' equity to total assets

14.0

%

14.2

%

14.1

%

15.0

%

15.7

%

15.6

%

Common equity Tier one

10.0

%

9.9

%

9.6

%

9.4

%

9.7

%

9.6

%

Tier one risk-based

10.9

%

10.7

%

10.4

%

9.4

%

9.7

%

9.6

%

Total risk-based

14.3

%

14.2

%

14.0

%

12.8

%

13.2

%

13.2

%

Leverage

8.6

%

8.5

%

8.4

%

8.8

%

9.1

%

8.9

%

Tangible common equity to tangible assets

8.5

%

8.5

%

8.3

%

9.2

%

9.6

%

9.4

%

Pinnacle Bank ratios:

Common equity Tier one

11.4

%

11.3

%

11.0

%

11.0

%

11.2

%

11.1

%

Tier one risk-based

11.4

%

11.3

%

11.0

%

11.0

%

11.2

%

11.1

%

Total risk-based

12.7

%

12.6

%

12.4

%

12.2

%

12.2

%

12.1

%

Leverage

9.1

%

8.9

%

8.9

%

10.3

%

10.5

%

10.4

%

Construction and land development loans

as a percentage of total capital (19)

89.0

%

86.7

%

83.6

%

84.2

%

83.6

%

79.9

%

Non-owner occupied commercial real estate and

multi-family as a percentage of total capital (19)

264.0

%

268.8

%

275.0

%

264.1

%

268.3

%

272.8

%

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 December September June March December Septemberthousands) 2020 2020 2020 2020 2019 2019

Asset qualityinformation and ratios:

Nonperforming assets:

Nonaccrual loans $ 73,836 71,390 62,562 70,970 61,605 73,263

Other real estate(ORE) and 12,360 19,445 22,105 27,182 29,487 30,049 other nonperformingassets (NPAs)

Total nonperforming $ 86,196 90,835 84,667 98,152 91,092 103,312 assets

Past due loans over90 days and still $ 2,362 1,313 1,982 1,990 1,615 2,450 accruing interest

Accruing troubleddebt restructurings ^ $ 2,494 2,588 3,274 3,869 4,850 5,803 (5)

Accruing purchasecredit deteriorated $ 14,091 14,346 14,616 13,984 13,249 12,887 loans

Net loan charge-offs $ 10,775 13,057 5,384 10,155 3,515 4,866

Allowance for creditlosses to nonaccrual 386.1 % 404.3 % 456.1 % 313.5 % 153.8 % 127.8 %loans

As a percentage of total loans:

Past due accruing 0.19 % 0.11 % 0.09 % 0.17 % 0.18 % 0.24 %loans over 30 days

Potential problem 0.77 % 0.96 % 1.12 % 1.22 % 1.39 % 1.31 %loans ^(6)

Allowance for credit 1.27 % 1.28 % 1.27 % 1.09 % 0.48 % 0.48 %losses ^(20)

Nonperforming assetsto total loans, ORE 0.38 % 0.40 % 0.38 % 0.48 % 0.46 % 0.53 %and other NPAs

Classified assetratio (Pinnacle Bank) 8.1 % 9.9 % 11.2 % 12.0 % 13.4 % 13.5 %^(8)

Annualized net loancharge-offs to avg. 0.19 % 0.23 % 0.10 % 0.20 % 0.07 % 0.10 %loans ^(7)

Wtd. avg. commercialloan internal risk 45.1 45.2 45.1 45.0 44.9 45.3ratings ^(6)

44.4 4.5 4.4 4.4 4.5

Interest rates and yields:

Loans 4.20 % 4.04 % 4.16 % 4.84 % 5.00 % 5.21 %

Securities 2.27 % 2.38 % 2.59 % 2.82 % 2.85 % 3.00 %

Total earning assets 3.44 % 3.38 % 3.58 % 4.41 % 4.58 % 4.78 %

Total deposits,including 0.33 % 0.43 % 0.55 % 0.99 % 1.10 % 1.25 %non-interest bearing

Securities sold underagreements to 0.21 % 0.21 % 0.20 % 0.33 % 0.48 % 0.45 %repurchase

FHLB advances 2.00 % 1.82 % 1.73 % 2.06 % 2.10 % 2.15 %

Subordinated debt and 4.13 % 3.99 % 4.42 % 4.96 % 4.04 % 4.22 %other borrowings

Total deposits andinterest-bearing 0.49 % 0.59 % 0.74 % 1.19 % 1.29 % 1.40 %liabilities



Capital and other ratios ^(8):

Pinnacle Financial ratios:

Stockholders' equity 14.0 % 14.2 % 14.1 % 15.0 % 15.7 % 15.6 %to total assets

Common equity Tier 10.0 % 9.9 % 9.6 % 9.4 % 9.7 % 9.6 %one

Tier one risk-based 10.9 % 10.7 % 10.4 % 9.4 % 9.7 % 9.6 %

Total risk-based 14.3 % 14.2 % 14.0 % 12.8 % 13.2 % 13.2 %

Leverage 8.6 % 8.5 % 8.4 % 8.8 % 9.1 % 8.9 %

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

Pinnacle Bank ratios:

Common equity Tier 11.4 % 11.3 % 11.0 % 11.0 % 11.2 % 11.1 %one

Tier one risk-based 11.4 % 11.3 % 11.0 % 11.0 % 11.2 % 11.1 %

Total risk-based 12.7 % 12.6 % 12.4 % 12.2 % 12.2 % 12.1 %

Leverage 9.1 % 8.9 % 8.9 % 10.3 % 10.5 % 10.4 %

Construction and landdevelopment loans 89.0 % 86.7 % 83.6 % 84.2 % 83.6 % 79.9 %as a percentage oftotal capital ^(19)

Non-owner occupiedcommercial realestate and 264.0 % 268.8 % 275.0 % 264.1 % 268.3 % 272.8 %multi-family as apercentage of totalcapital ^(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)

December

September

June

March

December

September

2020

2020

2020

2020

2019

2019

Per share data:

Earnings per common share - basic

$

1.42

1.42

0.83

0.37

1.26

1.45

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

$

1.58

1.45

0.89

0.39

1.27

1.45

Earnings per common share - diluted

$

1.42

1.42

0.83

0.37

1.26

1.44

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

$

1.58

1.45

0.89

0.39

1.27

1.45

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)

$

61.80

60.26

59.05

57.85

56.89

55.97

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

$

37.25

35.68

34.43

33.20

32.45

31.60

Revenue per diluted common share

$

4.03

3.95

3.63

3.47

3.32

3.64

Revenue per diluted common share, excluding non-GAAP adjustments

$

4.03

3.94

3.63

3.47

3.32

3.63

Investor information:

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

$

64.40

35.59

41.99

37.54

64.00

56.75

High closing sales price of common stock during quarter

$

65.51

44.47

48.98

64.03

64.80

61.14

Low closing sales price of common stock during quarter

$

35.97

33.28

33.24

31.98

54.58

50.78

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

$

27.69

26.49

25.98

-

-

-

High closing sales price of depositary shares during quarter

$

27.94

26.82

26.05

-

-

-

Low closing sales price of depositary shares during quarter

$

26.45

25.51

25.19

-

-

-

Other information:

Residential mortgage loan sales:

Gross loans sold

$

479,867

511,969

550,704

286,703

322,228

302,473

Gross fees (10)

$

23,729

23,557

16,381

9,490

9,953

9,392

Gross fees as a percentage of loans originated

4.94

%

4.60

%

2.97

%

3.31

%

3.09

%

3.11

%

Net gain on residential mortgage loans sold

$

12,387

19,453

19,619

8,583

6,044

7,402

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

$

-

651

(128)

463

68

417

Brokerage account assets, at quarter end (11)

$

5,509,560

4,866,726

4,499,856

4,000,643

4,636,441

4,355,429

Trust account managed assets, at quarter end

$

3,295,198

2,978,035

2,908,131

2,714,582

2,942,811

2,530,356

Core deposits (12)

$

23,510,883

22,003,989

21,391,794

18,604,262

17,617,479

17,103,470

Core deposits to total funding (12)

79.5

%

76.9

%

75.8

%

75.9

%

76.2

%

74.7

%

Risk-weighted assets

$

25,791,896

25,189,944

24,937,535

24,600,490

23,911,064

23,370,342

Number of offices

114

114

113

111

111

114

Total core deposits per office

$

206,236

193,017

189,308

167,606

158,716

150,030

Total assets per full-time equivalent employee

$

13,262

13,027

12,936

11,422

11,180

11,217

Annualized revenues per full-time equivalent employee

$

459.8

456.1

426.9

414.3

404.6

449.8

Annualized expenses per full-time equivalent employee

$

246.6

221.1

205.4

215.6

208.1

214.8

Number of employees (full-time equivalent)

2,634.0

2,596.5

2,577.5

2,562.0

2,487.0

2,456.0

Associate retention rate (13)

94.8

%

94.4

%

94.5

%

93.5

%

92.8

%

93.2

%

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 December September June March December Septemberthousands,except pershare data) 2020 2020 2020 2020 2019 2019



Per share data:

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

Earnings percommon share- basic, $ 1.58 1.45 0.89 0.39 1.27 1.45 excludingnon-GAAPadjustments

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

Earnings percommon share- diluted, $ 1.58 1.45 0.89 0.39 1.27 1.45 excludingnon-GAAPadjustments

Commondividends per $ 0.16 0.16 0.16 0.16 0.16 0.16 share

Book valueper commonshare at $ 61.80 60.26 59.05 57.85 56.89 55.97 quarter end ^(9)

Tangible bookvalue percommon share $ 37.25 35.68 34.43 33.20 32.45 31.60 at quarterend ^(9)

Revenue perdiluted $ 4.03 3.95 3.63 3.47 3.32 3.64 common share

Revenue perdilutedcommon share, $ 4.03 3.94 3.63 3.47 3.32 3.63 excludingnon-GAAPadjustments



Investor information:

Closing salesprice ofcommon stock $ 64.40 35.59 41.99 37.54 64.00 56.75 on lasttrading dayof quarter

High closingsales priceof common $ 65.51 44.47 48.98 64.03 64.80 61.14 stock duringquarter

Low closingsales priceof common $ 35.97 33.28 33.24 31.98 54.58 50.78 stock duringquarter



Closing salesprice ofdepositaryshares on $ 27.69 26.49 25.98 - - - last tradingday ofquarter

High closingsales priceof depositary $ 27.94 26.82 26.05 - - - shares duringquarter

Low closingsales priceof depositary $ 26.45 25.51 25.19 - - - shares duringquarter



Other information:

Residentialmortgage loan sales:

Gross loans $ 479,867 511,969 550,704 286,703 322,228 302,473 sold

Gross fees ^ $ 23,729 23,557 16,381 9,490 9,953 9,392 (10)

Gross fees asa percentage 4.94 % 4.60 % 2.97 % 3.31 % 3.09 % 3.11 %of loansoriginated

Net gain onresidential $ 12,387 19,453 19,619 8,583 6,044 7,402 mortgageloans sold

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

Brokerageaccountassets, at $ 5,509,560 4,866,726 4,499,856 4,000,643 4,636,441 4,355,429 quarter end ^(11)

Trust accountmanaged $ 3,295,198 2,978,035 2,908,131 2,714,582 2,942,811 2,530,356 assets, atquarter end

Core deposits $ 23,510,883 22,003,989 21,391,794 18,604,262 17,617,479 17,103,470 ^(12)

Core depositsto total 79.5 % 76.9 % 75.8 % 75.9 % 76.2 % 74.7 %funding ^(12)

Risk-weighted $ 25,791,896 25,189,944 24,937,535 24,600,490 23,911,064 23,370,342 assets

Number of 114 114 113 111 111 114 offices

Total coredeposits per $ 206,236 193,017 189,308 167,606 158,716 150,030 office

Total assetsper full-time $ 13,262 13,027 12,936 11,422 11,180 11,217 equivalentemployee

Annualizedrevenues perfull-time $ 459.8 456.1 426.9 414.3 404.6 449.8 equivalentemployee

Annualizedexpenses perfull-time $ 246.6 221.1 205.4 215.6 208.1 214.8 equivalentemployee

Number ofemployees 2,634.0 2,596.5 2,577.5 2,562.0 2,487.0 2,456.0 (full-timeequivalent)

Associateretention 94.8 % 94.4 % 94.5 % 93.5 % 92.8 % 93.2 %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

Year ended

(dollars in thousands, except per share data)

December

September

December

December

December

2020

2020

2019

2020

2019

Net interest income

$

220,985

206,594

194,172

821,788

766,142

Noninterest income

83,444

91,065

59,462

317,840

263,826

Total revenues

304,429

297,659

253,634

1,139,628

1,029,968

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

-

(651

)

(68

)

(986

)

5,941

Loss on sale of non-prime automobile portfolio

-

-

-

-

1,536

Total revenues excluding the impact of adjustments noted above

$

304,429

297,008

253,566

1,138,642

1,037,445

Noninterest expense

$

163,305

144,277

130,470

576,536

505,148

Less: Other real estate (ORE) expense

1,457

1,795

804

8,555

4,228

FHLB restructuring charges

10,307

1,991

-

15,168

-

Hedge termination charges

4,673

-

-

4,673

-

Branch rationalization charges

-

-

-

-

3,189

Noninterest expense excluding the impact of adjustments noted above

$

146,868

140,491

129,666

548,140

497,731

Pre-tax income

$

133,944

137,049

118,520

371,358

497,537

Provision for credit losses

7,180

16,333

4,644

191,734

27,283

Pre-tax pre-provision net revenue

141,124

153,382

123,164

563,092

524,820

Adjustments noted above

16,437

3,135

736

27,410

14,894

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

$

157,561

156,517

123,900

590,502

539,714

Noninterest income

$

83,444

91,065

59,462

317,840

263,826

Less: Adjustments as noted above

-

(651

)

(68

)

(986

)

7,477

Noninterest income excluding the impact of adjustments noted above

$

83,444

90,414

59,394

316,854

271,303

Efficiency ratio (4)

53.64

%

48.47

%

51.44

%

50.59

%

49.05

%

Adjustments as noted above

(5.40

)%

(1.17

)%

(0.30

)%

(2.45

)%

(1.07

)%

Efficiency ratio (excluding adjustments noted above)

48.24

%

47.30

%

51.14

%

48.14

%

47.98

%

Total average assets

$

34,436,765

33,838,716

27,604,774

32,334,537

26,435,154

Noninterest income to average assets (1)

0.96

%

1.07

%

0.85

%

0.98

%

1.00

%

Adjustments as noted above

-

%

(0.01

)%

-

%

-

%

0.03

%

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

0.96

%

1.06

%

0.85

%

0.98

%

1.03

%

Noninterest expense to average assets (1)

1.89

%

1.70

%

1.88

%

1.78

%

1.91

%

Adjustments as noted above

(0.19

)%

(0.05

)%

(0.02

)%

(0.08

)%

(0.03

)%

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

1.70

%

1.65

%

1.86

%

1.70

%

1.88

%

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 Year ended

(dollars in December September December December Decemberthousands,except pershare data) 2020 2020 2019 2020 2019



Net interest $ 220,985 206,594 194,172 821,788 766,142 income



Noninterest 83,444 91,065 59,462 317,840 263,826 income

Total revenues 304,429 297,659 253,634 1,139,628 1,029,968

Less:Investment(gains) losses - (651 ) (68 ) (986 ) 5,941 on sales ofsecurities, net

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

Total revenuesexcluding theimpact of $ 304,429 297,008 253,566 1,138,642 1,037,445 adjustmentsnoted above



Noninterest $ 163,305 144,277 130,470 576,536 505,148 expense

Less: Otherreal estate 1,457 1,795 804 8,555 4,228 (ORE) expense

FHLBrestructuring 10,307 1,991 - 15,168 - charges

Hedgetermination 4,673 - - 4,673 - charges

Branchrationalization - - - - 3,189 charges

Noninterestexpenseexcluding the $ 146,868 140,491 129,666 548,140 497,731 impact ofadjustmentsnoted above



Pre-tax income $ 133,944 137,049 118,520 371,358 497,537

Provision for 7,180 16,333 4,644 191,734 27,283 credit losses

Pre-taxpre-provision 141,124 153,382 123,164 563,092 524,820 net revenue

Adjustments 16,437 3,135 736 27,410 14,894 noted above

Adjustedpre-taxpre-provision $ 157,561 156,517 123,900 590,502 539,714 net revenue^(14)





Noninterest $ 83,444 91,065 59,462 317,840 263,826 income

Less:Adjustments as - (651 ) (68 ) (986 ) 7,477 noted above

Noninterestincomeexcluding the $ 83,444 90,414 59,394 316,854 271,303 impact ofadjustmentsnoted above



Efficiency 53.64 % 48.47 % 51.44 % 50.59 % 49.05 %ratio ^(4)

Adjustments as (5.40 ) (1.17 ) (0.30 ) (2.45 ) (1.07 )noted above % % % % %

Efficiencyratio(excluding 48.24 % 47.30 % 51.14 % 48.14 % 47.98 %adjustmentsnoted above)



Total average $ 34,436,765 33,838,716 27,604,774 32,334,537 26,435,154 assets



Noninterestincome to 0.96 % 1.07 % 0.85 % 0.98 % 1.00 %average assets^(1)

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

Noninterestincome(excludingadjustments 0.96 % 1.06 % 0.85 % 0.98 % 1.03 %noted above) toaverage assets^(1)



Noninterestexpense to 1.89 % 1.70 % 1.88 % 1.78 % 1.91 %average assets^(1)

Adjustments as (0.19 ) (0.05 ) (0.02 ) (0.08 ) (0.03 )noted above % % % % %

Noninterestexpense(excludingadjustments 1.70 % 1.65 % 1.86 % 1.70 % 1.88 %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)

December

September

June

March

December

September

2020

2020

2020

2020

2019

2019

Net income available to common shareholders

$

107,078

106,847

62,444

28,356

96,079

110,521

Investment (gains) losses on sales of securities, net

-

(651

)

128

(463

)

(68

)

(417

)

Sale of non-prime automobile portfolio

-

-

-

-

-

-

ORE expense

1,457

1,795

2,888

2,415

804

655

Branch rationalization charges

-

-

-

-

-

-

FHLB restructuring charges

10,307

1,991

2,870

-

-

-

Hedge termination charges

4,673

-

-

-

-

-

Tax effect on adjustments noted above (18)

(4,297

)

(819

)

(1,539

)

(510

)

(192

)

(62

)

Net income available to common shareholders excluding adjustments noted above

$

119,218

109,163

66,791

29,798

96,623

110,697

Basic earnings per common share

$

1.42

1.42

0.83

0.37

1.26

1.45

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

-

(0.01

)

-

-

-

(0.01

)

Adjustment due to sale of non-prime automobile portfolio

-

-

-

-

-

-

Adjustment due to ORE expense

0.02

0.02

0.04

0.03

0.01

0.01

Adjustment due to branch rationalization charges

-

-

-

-

-

-

Adjustment due to FHLB restructuring charges

0.14

0.03

0.04

-

-

-

Adjustment due to hedge termination charges

0.06

-

-

-

-

-

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

(0.06

)

(0.01

)

(0.02

)

(0.01

)

-

-

Basic earnings per common share excluding adjustments noted above

$

1.58

1.45

0.89

0.39

1.27

1.45

Diluted earnings per common share

$

1.42

1.42

0.83

0.37

1.26

1.44

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

-

(0.01

)

-

-

-

(0.01

)

Adjustment due to sale of non-prime automobile portfolio

-

-

-

-

-

-

Adjustment due to ORE expense

0.02

0.02

0.04

0.03

0.01

0.01

Adjustment due to branch rationalization charges

-

-

-

-

-

-

Adjustment due to FHLB restructuring charges

0.14

0.03

0.04

-

-

-

Adjustment due to hedge termination charges

0.06

-

-

-

-

-

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

(0.06

)

(0.01

)

(0.02

)

(0.01

)

-

0.01

Diluted earnings per common share excluding the adjustments noted above

$

1.58

1.45

0.89

0.39

1.27

1.45

Revenue per diluted common share

$

4.03

3.95

3.63

3.47

3.32

3.64

Adjustments as noted above

-

(0.01

)

-

-

-

(0.01

)

Revenue per diluted common share excluding adjustments noted above

$

4.03

3.94

3.63

3.47

3.32

3.63

Book value per common share at quarter end

$

61.80

60.26

59.05

57.85

56.89

55.97

Adjustment due to goodwill, core deposit and other intangible assets

(24.55

)

(24.58

)

(24.62

)

(24.65

)

(24.44

)

(24.37

)

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

$

37.25

35.68

34.43

33.20

32.45

31.60

Equity method investment (17)

Fee income from BHG, net of amortization

$

24,294

26,445

17,208

15,592

12,312

32,248

Funding cost to support investment

1,222

1,231

2,134

2,122

2,345

2,366

Pre-tax impact of BHG

23,072

25,214

15,074

13,470

9,967

29,882

Income tax expense at statutory rates

6,031

6,591

3,940

3,521

2,605

7,811

Earnings attributable to BHG

$

17,041

18,623

11,134

9,949

7,362

22,071

Basic earnings per common share attributable to BHG

$

0.23

0.25

0.15

0.13

0.10

0.29

Diluted earnings per common share attributable to BHG

$

0.23

0.25

0.15

0.13

0.10

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 December September June March December Septemberthousands, exceptper share data) 2020 2020 2020 2020 2019 2019

Net income availableto common $ 107,078 106,847 62,444 28,356 96,079 110,521 shareholders

Investment (gains)losses on sales of - (651 ) 128 (463 ) (68 ) (417 )securities, net

Sale of non-prime - - - - - - automobile portfolio

ORE expense 1,457 1,795 2,888 2,415 804 655

Branchrationalization - - - - - - charges

FHLB restructuring 10,307 1,991 2,870 - - - charges

Hedge termination 4,673 - - - - - charges

Tax effect onadjustments noted (4,297 ) (819 ) (1,539 ) (510 ) (192 ) (62 )above ^(18)

Net income availableto commonshareholders $ 119,218 109,163 66,791 29,798 96,623 110,697 excludingadjustments notedabove



Basic earnings per $ 1.42 1.42 0.83 0.37 1.26 1.45 common share

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

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

Adjustment due to 0.02 0.02 0.04 0.03 0.01 0.01 ORE expense

Adjustment due tobranch - - - - - - rationalizationcharges

Adjustment due toFHLB restructuring 0.14 0.03 0.04 - - - charges

Adjustment due tohedge termination 0.06 - - - - - charges

Adjustment due totax effect on (0.06 ) (0.01 ) (0.02 ) (0.01 ) - - adjustments notedabove ^(18)

Basic earnings percommon shareexcluding $ 1.58 1.45 0.89 0.39 1.27 1.45 adjustments notedabove



Diluted earnings per $ 1.42 1.42 0.83 0.37 1.26 1.44 common share

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

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

Adjustment due to 0.02 0.02 0.04 0.03 0.01 0.01 ORE expense

Adjustment due tobranch - - - - - - rationalizationcharges

Adjustment due toFHLB restructuring 0.14 0.03 0.04 - - - charges

Adjustment due tohedge termination 0.06 - - - - - charges

Adjustment due totax effect on (0.06 ) (0.01 ) (0.02 ) (0.01 ) - 0.01 adjustments notedabove ^(18)

Diluted earnings percommon shareexcluding the $ 1.58 1.45 0.89 0.39 1.27 1.45 adjustments notedabove



Revenue per diluted $ 4.03 3.95 3.63 3.47 3.32 3.64 common share

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

Revenue per dilutedcommon shareexcluding $ 4.03 3.94 3.63 3.47 3.32 3.63 adjustments notedabove



Book value percommon share at $ 61.80 60.26 59.05 57.85 56.89 55.97 quarter end

Adjustment due togoodwill, core (24.55 ) (24.58 ) (24.62 ) (24.65 ) (24.44 ) (24.37 )deposit and otherintangible assets

Tangible book valueper common share at $ 37.25 35.68 34.43 33.20 32.45 31.60 quarter end ^(9)



Equity method investment ^(17)

Fee income from BHG, $ 24,294 26,445 17,208 15,592 12,312 32,248 net of amortization

Funding cost to 1,222 1,231 2,134 2,122 2,345 2,366 support investment

Pre-tax impact of 23,072 25,214 15,074 13,470 9,967 29,882 BHG

Income tax expense 6,031 6,591 3,940 3,521 2,605 7,811 at statutory rates

Earnings $ 17,041 18,623 11,134 9,949 7,362 22,071 attributable to BHG



Basic earnings percommon share $ 0.23 0.25 0.15 0.13 0.10 0.29 attributable to BHG

Diluted earnings percommon share $ 0.23 0.25 0.15 0.13 0.10 0.29 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

Year ended

(dollars in thousands, except per share data)

December

December

2020

2019

Net income available to common shareholders

$

304,725

400,881

Investment (gains) losses on sales of securities, net

(986

)

5,941

Sale of non-prime automobile portfolio

-

1,536

ORE expense

8,555

4,228

Branch rationalization charges

-

3,189

FHLB restructuring charges

15,168

-

Hedge termination charges

4,673

-

Tax effect on adjustments noted above (18)

(7,165

)

(3,893

)

Net income available to common shareholders excluding adjustments noted above

$

324,970

411,882

Basic earnings per common share

$

4.04

5.25

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

0.11

0.05

Adjustment due to branch rationalization charges

-

0.04

Adjustment due to FHLB restructuring charges

0.20

-

Adjustment due to hedge termination charges

0.06

-

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

(0.10

)

(0.05

)

Basic earnings per common share excluding adjustments noted above

$

4.30

5.39

Diluted earnings per common share

4.03

5.22

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

0.11

0.05

Adjustment due to branch rationalization charges

-

0.04

Adjustment due to FHLB restructuring charges

0.20

-

Adjustment due to hedge termination charges

0.06

-

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

(0.09

)

(0.04

)

Diluted earnings per common share excluding the adjustments noted above

$

4.30

5.37

Revenue per diluted common share

$

15.06

13.42

Adjustments as noted above

(0.01

)

0.09

Revenue per diluted common share excluding adjustments noted above

$

15.05

13.51

Equity method investment (17)

Fee income from BHG, net of amortization

$

83,539

90,111

Funding cost to support investment

6,709

9,489

Pre-tax impact of BHG

76,830

80,622

Income tax expense at statutory rates

20,083

21,075

Earnings attributable to BHG

$

56,747

59,547

Basic earnings per common share attributable to BHG

$

0.75

0.78

Diluted earnings per common share attributable to BHG

$

0.75

0.78

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

Year ended

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

Net income available to common shareholders $ 304,725 400,881

Investment (gains) losses on sales of securities, net (986 ) 5,941

Sale of non-prime automobile portfolio - 1,536

ORE expense 8,555 4,228

Branch rationalization charges - 3,189

FHLB restructuring charges 15,168 -

Hedge termination charges 4,673 -

Tax effect on adjustments noted above ^(18) (7,165 ) (3,893 )

Net income available to common shareholders excluding $ 324,970 411,882 adjustments noted above



Basic earnings per common share $ 4.04 5.25

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

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

Adjustment due to ORE expense 0.11 0.05

Adjustment due to branch rationalization charges - 0.04

Adjustment due to FHLB restructuring charges 0.20 -

Adjustment due to hedge termination charges 0.06 -

Adjustment due to tax effect on adjustments noted above (0.10 ) (0.05 )^(18)

Basic earnings per common share excluding adjustments $ 4.30 5.39 noted above



Diluted earnings per common share 4.03 5.22

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

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

Adjustment due to ORE expense 0.11 0.05

Adjustment due to branch rationalization charges - 0.04

Adjustment due to FHLB restructuring charges 0.20 -

Adjustment due to hedge termination charges 0.06 -

Adjustment due to tax effect on adjustments noted above (0.09 ) (0.04 )^(18)

Diluted earnings per common share excluding the $ 4.30 5.37 adjustments noted above



Revenue per diluted common share $ 15.06 13.42

Adjustments as noted above (0.01 ) 0.09

Revenue per diluted common share excluding adjustments $ 15.05 13.51 noted above



Equity method investment ^(17)

Fee income from BHG, net of amortization $ 83,539 90,111

Funding cost to support investment 6,709 9,489

Pre-tax impact of BHG 76,830 80,622

Income tax expense at statutory rates 20,083 21,075

Earnings attributable to BHG $ 56,747 59,547



Basic earnings per common share attributable to BHG $ 0.75 0.78

Diluted earnings per common share attributable to BHG $ 0.75 0.78



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

Year ended

(dollars in thousands, except per share data)

December

September

December

December

December

2020

2020

2019

2020

2019

Return on average assets (1)

1.24

%

1.26

%

1.38

%

0.94

%

1.52

%

Adjustments as noted above

0.14

%

0.02

%

0.01

%

0.07

%

0.04

%

Return on average assets excluding adjustments noted above (1)

1.38

%

1.28

%

1.39

%

1.01

%

1.56

%

Tangible assets:

Total assets

$

34,932,860

33,824,931

27,805,496

$

34,932,860

27,805,496

Less: Goodwill

(1,819,811

)

(1,819,811

)

(1,819,811

)

(1,819,811

)

(1,819,811

)

Core deposit and other intangible assets

(42,336

)

(44,713

)

(51,130

)

(42,336

)

(51,130

)

Net tangible assets

$

33,070,713

31,960,407

25,934,555

$

33,070,713

25,934,555

Tangible common equity:

Total stockholders' equity

$

4,904,611

4,787,308

4,355,748

$

4,904,611

4,355,748

Less: Preferred stockholders' equity

(217,126

)

(217,126

)

-

(217,126

)

-

Total common stockholders' equity

4,687,485

4,570,182

4,355,748

4,687,485

4,355,748

Less: Goodwill

(1,819,811

)

(1,819,811

)

(1,819,811

)

(1,819,811

)

(1,819,811

)

Core deposit and other intangible assets

(42,336

)

(44,713

)

(51,130

)

(42,336

)

(51,130

)

Net tangible common equity

$

2,825,338

2,705,658

2,484,807

$

2,825,338

2,484,807

Ratio of tangible common equity to tangible assets

8.54

%

8.47

%

9.58

%

8.54

%

9.58

%

Average tangible assets:

Average assets

$

34,436,765

33,838,716

27,604,774

$

32,334,537

26,435,154

Less: Average goodwill

(1,819,811

)

(1,819,811

)

(1,830,370

)

(1,819,811

)

(1,817,596

)

Average core deposit and other intangible assets

(43,886

)

(46,272

)

(38,746

)

(47,196

)

(41,953

)

Net average tangible assets

$

32,573,068

31,972,633

25,735,658

$

30,467,530

24,575,605

Return on average assets (1)

1.24

%

1.26

%

1.38

%

0.94

%

1.52

%

Adjustment due to goodwill, core deposit and other intangible assets

0.07

%

0.07

%

0.10

%

0.06

%

0.11

%

Return on average tangible assets (1)

1.31

%

1.33

%

1.48

%

1.00

%

1.63

%

Adjustments as noted above

0.15

%

0.03

%

0.01

%

0.07

%

0.05

%

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

1.46

%

1.36

%

1.49

%

1.07

%

1.68

%

Average tangible common equity:

Average stockholders' equity

$

4,852,373

4,765,864

4,343,246

$

4,634,666

4,186,955

Less: Average preferred equity

(217,126

)

(217,535

)

-

(124,074

)

-

Average common equity

4,635,247

4,548,329

4,343,246

4,510,592

4,186,955

Less: Average goodwill

(1,819,811

)

(1,819,811

)

(1,830,370

)

(1,819,811

)

(1,817,596

)

Average core deposit and other intangible assets

(43,886

)

(46,272

)

(38,746

)

(47,196

)

(41,953

)

Net average tangible common equity

$

2,771,550

2,682,246

2,474,130

$

2,643,585

2,327,406

Return on average equity (1)

8.78

%

8.92

%

8.78

%

6.57

%

9.57

%

Adjustment due to average preferred stockholders' equity

0.41

%

0.43

%

-

%

0.19

%

-

%

Return on average common equity (1)

9.19

%

9.35

%

8.78

%

6.76

%

9.57

%

Adjustment due to goodwill, core deposit and other intangible assets

6.18

%

6.50

%

6.63

%

4.77

%

7.65

%

Return on average tangible common equity (1)

15.37

%

15.85

%

15.41

%

11.53

%

17.22

%

Adjustments as noted above

1.74

%

0.34

%

0.09

%

0.76

%

0.48

%

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

17.11

%

16.19

%

15.49

%

12.29

%

17.70

%

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

1.27

%

1.28

%

0.48

%

1.27

%

0.48

%

Impact of excluding PPP loans from total loans

0.11

%

0.15

%

-

%

0.11

%

-

%

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

1.38

%

1.43

%

0.48

%

1.38

%

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 Year ended

(dollars in December September December December Decemberthousands,except pershare data) 2020 2020 2019 2020 2019



Return onaverage 1.24 % 1.26 % 1.38 % 0.94 % 1.52 %assets ^(1)

Adjustmentsas noted 0.14 % 0.02 % 0.01 % 0.07 % 0.04 %above

Return onaverageassetsexcluding 1.38 % 1.28 % 1.39 % 1.01 % 1.56 %adjustmentsnoted above ^(1)



Tangible assets:

Total assets $ 34,932,860 33,824,931 27,805,496 $ 34,932,860 27,805,496

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

Core depositand other (42,336 ) (44,713 ) (51,130 ) (42,336 ) (51,130 )intangibleassets

Net tangible $ 33,070,713 31,960,407 25,934,555 $ 33,070,713 25,934,555 assets



Tangiblecommon equity:

Totalstockholders' $ 4,904,611 4,787,308 4,355,748 $ 4,904,611 4,355,748 equity

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

Total commonstockholders' 4,687,485 4,570,182 4,355,748 4,687,485 4,355,748 equity

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

Core depositand other (42,336 ) (44,713 ) (51,130 ) (42,336 ) (51,130 )intangibleassets

Net tangible $ 2,825,338 2,705,658 2,484,807 $ 2,825,338 2,484,807 common equity



Ratio oftangiblecommon equity 8.54 % 8.47 % 9.58 % 8.54 % 9.58 %to tangibleassets



Averagetangible assets:

Average $ 34,436,765 33,838,716 27,604,774 $ 32,334,537 26,435,154 assets

Less: Average (1,819,811 ) (1,819,811 ) (1,830,370 ) (1,819,811 ) (1,817,596 )goodwill

Average coredeposit andother (43,886 ) (46,272 ) (38,746 ) (47,196 ) (41,953 )intangibleassets

Net averagetangible $ 32,573,068 31,972,633 25,735,658 $ 30,467,530 24,575,605 assets



Return onaverage 1.24 % 1.26 % 1.38 % 0.94 % 1.52 %assets ^(1)

Adjustmentdue togoodwill,core deposit 0.07 % 0.07 % 0.10 % 0.06 % 0.11 %and otherintangibleassets

Return onaverage 1.31 % 1.33 % 1.48 % 1.00 % 1.63 %tangibleassets ^(1)

Adjustmentsas noted 0.15 % 0.03 % 0.01 % 0.07 % 0.05 %above

Return onaveragetangibleassets 1.46 % 1.36 % 1.49 % 1.07 % 1.68 %excludingadjustmentsnoted above ^(1)



Averagetangible commonequity:

Averagestockholders' $ 4,852,373 4,765,864 4,343,246 $ 4,634,666 4,186,955 equity

Less: Averagepreferred (217,126 ) (217,535 ) - (124,074 ) - equity

Average 4,635,247 4,548,329 4,343,246 4,510,592 4,186,955 common equity

Less: Average (1,819,811 ) (1,819,811 ) (1,830,370 ) (1,819,811 ) (1,817,596 )goodwill

Average coredeposit andother (43,886 ) (46,272 ) (38,746 ) (47,196 ) (41,953 )intangibleassets

Net averagetangible $ 2,771,550 2,682,246 2,474,130 $ 2,643,585 2,327,406 common equity



Return onaverage 8.78 % 8.92 % 8.78 % 6.57 % 9.57 %equity^ (1)

Adjustmentdue toaverage 0.41 % 0.43 % - % 0.19 % - %preferredstockholders'equity

Return onaverage 9.19 % 9.35 % 8.78 % 6.76 % 9.57 %common equity^(1)

Adjustmentdue togoodwill,core deposit 6.18 % 6.50 % 6.63 % 4.77 % 7.65 %and otherintangibleassets

Return onaveragetangible 15.37 % 15.85 % 15.41 % 11.53 % 17.22 %common equity^(1)

Adjustmentsas noted 1.74 % 0.34 % 0.09 % 0.76 % 0.48 %above

Return onaveragetangiblecommon equity 17.11 % 16.19 % 15.49 % 12.29 % 17.70 %excludingadjustmentsnoted above ^(1)



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

Impact ofexcluding PPP 0.11 % 0.15 % - % 0.11 % - %loans fromtotal loans

Allowance asadjusted forthe aboveexclusion of 1.38 % 1.43 % 0.48 % 1.38 % 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, investment gains and losses on sales of securities, loss on the sale of non-prime automobile portfolio, branch rationalization charges, FHLB restructuring charges and hedge termination charges.

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.

pnfp-earnings

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