Business Wire | Apr 19, 2021 06:06PM EDT

PNFP Reports Diluted EPS of $1.61, ROAA of 1.42% and ROTCE of 17.16% For 1Q2021

Apr. 19, 2021

NASHVILLE, Tenn.--(BUSINESS WIRE)--Apr. 19, 2021--Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported net income per diluted common share of $1.61 for the quarter ended March 31, 2021, compared to net income per diluted common share of $0.37 for the quarter ended March 31, 2020, an increase of approximately 335 percent. Excluding other real estate (ORE) expense for the three months ended March 31, 2021 and ORE expense and gains and losses on the sale of investment securities for the three months ended March 31, 2020, net income per diluted common share was $1.61 for the three months ended March 31, 2021, compared to $0.39 for the three months ended March 31, 2020, a year-over-year increase of nearly 313 percent.

"We are very pleased with our operating results for the first quarter of this year," said M. Terry Turner, Pinnacle's president and chief executive officer. "To report these results right out of the gate provides us even more optimism regarding our franchise and the difference that the high-performance culture we have built makes. Just recently, Fortune magazine, in concert with Great Place to Work(r), notified us that we ranked as the 26th best place to work in 2020 in all of the United States in all industries.

"I believe our reputation as a great place to work has fueled our recruiting success against the large regional and national franchises we target. Following two incredibly successful years of recruiting experienced revenue producers, during the first quarter of 2021 we were off to another fast start, attracting 25 new revenue producers to our firm. We are excited to report diluted earnings per share of $1.61, which is the most we have ever reported for a calendar quarter in our 20 year history. We also increased our book value per common share to $62.33, which is also the highest it has ever been and up nearly 8 percent since March 31, 2020. Over that same period our tangible book value per common share grew by more than 14 percent to $37.88 per common share, also a record. Our hiring pipelines remain strong, and we remain optimistic as we seek to produce both outsized earnings and tangible book value per share growth in 2021."

BALANCE SHEET GROWTH:

* Loans at March 31, 2021 were $23.1 billion, an increase of $2.7 billion from March 31, 2020, reflecting year-over-year growth of 13.2 percent. Loans at March 31, 2021 increased approximately $662.2 million from Dec. 31, 2020. Loans at March 31, 2021 include approximately $2.2 billion of loans issued pursuant to the Small Business Administration's (SBA's) Paycheck Protection Program (PPP). The average yield on these loans was 4.51 percent for the first quarter of 2021, inclusive of $17.8 million of loan fee accretion recognized in the quarter. At March 31, 2021, there were $63.3 million in SBA PPP loan fees remaining, which should be accreted into net interest income through mid-year 2026 as these loans are repaid and/or are forgiven under the PPP. PPP loans increased by $422.5 million between Dec. 31, 2020 and March 31, 2021 due to the reopening and extension of the PPP lending programs by the SBA. Excluding PPP loans, total loans increased by $239.7 million during the same period, or 4.6 percent on an annualized basis. Average loans were $22.8 billion for the three months ended March 31, 2021, up $323.4 million from the three months ended Dec. 31, 2020, a linked-quarter annualized growth rate of 5.7 percent. Excluding the impact of $2.1 billion of average PPP loans outstanding during both the three months ended March 31, 2021 and Dec. 31, 2020, average loans were $20.7 billion for the three months ended March 31, 2021, up $369.8 million from $20.4 billion for the three months ended Dec. 31, 2020, a linked-quarter annualized growth rate of 7.2 percent. At March 31, 2021, the remaining discount associated with fair value accounting adjustments on acquired loans was $24.0 million, compared to $27.8 million at Dec. 31, 2020. * Deposits at March 31, 2021 were a record $28.3 billion, an increase of $7.0 billion from March 31, 2020, reflecting year-over-year growth of 32.6 percent. Deposits at March 31, 2021 increased $587.4 million from Dec. 31, 2020, reflecting a linked-quarter annualized growth rate of 8.5 percent. Average deposits were $27.6 billion for the three months ended March 31, 2021, compared to $27.2 billion for the three months ended Dec. 31, 2020, a linked-quarter annualized growth rate of 6.3 percent. Core deposits were $25.0 billion at March 31, 2021, compared to $18.6 billion at March 31, 2020 and $23.5 billion at Dec. 31, 2020. The linked-quarter annualized growth rate of core deposits in the first quarter of 2021 was 24.8 percent.

"Despite the significant headwinds of excess borrower liquidity, CRE paydowns and limited loan demand, excluding PPP, we were able to report annualized loan growth for the first quarter of 4.6 percent," Turner said. "We are optimistic that loan growth should pick up in the back half of the year as the revenue producers we have hired gain momentum and believe high-single digit loan growth in 2021 remains possible, excluding the impact of the PPP program.

"Additionally, core deposit growth continued at a rapid pace during the first quarter of 2021. We believe that meaningful core deposit growth will continue this year as a post-COVID economy begins to emerge and more government stimulus finds its way into our clients' accounts."

PROFITABILITY:

* Return on average assets was 1.42 percent for the first quarter of 2021, compared to 1.24 percent for the fourth quarter of 2020 and 0.40 percent for the first quarter of 2020. First quarter 2021 return on average tangible assets amounted to 1.50 percent, compared to 1.31 percent for the fourth quarter of 2020 and 0.43 percent for the first quarter of 2020. Excluding the adjustments described above for both 2021 and 2020 and FHLB restructuring charges and hedge termination charges for the fourth quarter of 2020, return on average assets was 1.42 percent for the first quarter of 2021, compared to 1.38 percent for the fourth quarter of 2020 and 0.42 percent for the first quarter of 2020. Likewise, excluding those same adjustments, the firm's return on average tangible assets was 1.50 percent for the first quarter of 2021, compared to 1.46 percent for the fourth quarter of 2020 and 0.45 percent for the first quarter of 2020. * Return on average equity for the first quarter of 2021 amounted to 9.96 percent, compared to 8.78 percent for the fourth quarter of 2020 and 2.58 percent for the first quarter of 2020. Excluding preferred stockholders' equity for each of the three months ended March 31, 2021, Dec. 31, 2020 and March 31, 2020, respectively, return on average common equity for the first quarter of 2021 amounted to 10.41 percent, compared to 9.19 percent for the fourth quarter of 2020 and 2.58 percent for the first quarter of 2020. First quarter 2021 return on average tangible common equity amounted to 17.16 percent, compared to 15.37 percent for the fourth quarter of 2020 and 4.48 percent for the first quarter of 2020. Excluding the adjustments described above for both 2021 and 2020 and FHLB restructuring charges and hedge termination charges in the fourth quarter of 2020, return on average tangible common equity amounted to 17.16 percent for the first quarter of 2021, compared to 17.11 percent for the fourth quarter of 2020 and 4.71 percent for the first quarter of 2020.

"As to our core profitability metrics, we are again reporting another solid quarter," said Harold R. Carpenter, Pinnacle's chief financial officer. "Our aim for 2021 will be top-quartile peer performance with respect to return on tangible common equity, as well as tangible book value per share growth. We believe we are off to a great start in 2021."

MAINTAINING A STRONG BALANCE SHEET:

* Net charge-offs were $11.4 million for the quarter ended March 31, 2021, compared to $10.8 million for the quarter ended Dec. 31, 2020 and $10.2 million for the quarter ended March 31, 2020. Annualized net charge-offs as a percentage of average loans for the quarter ended March 31, 2021 were 0.20 percent, compared to 0.19 percent for the quarter ended Dec. 31, 2020 and 0.20 percent for the quarter ended March 31, 2020. * Nonperforming assets were 0.36 percent of total loans and ORE at March 31, 2021, compared to 0.38 percent at Dec. 31, 2020 and 0.48 percent at March 31, 2020. Nonperforming assets were $82.8 million at March 31, 2021, compared to $86.2 million at Dec. 31, 2020 and $98.2 million at March 31, 2020. * The classified asset ratio at March 31, 2021 was 7.3 percent, compared to 8.1 percent at Dec. 31, 2020 and 12.0 percent at March 31, 2020. Classified assets were $244.9 million at March 31, 2021, compared to $262.1 million at Dec. 31, 2020 and $350.1 million at March 31, 2020. * The allowance for credit losses represented 1.22 percent of total loans at March 31, 2021, compared to 1.27 percent at Dec. 31, 2020 and 1.09 percent at March 31, 2020. Excluding PPP loans, the allowance for credit losses as a percentage of total loans was 1.35 percent at March 31, 2021 and 1.38 percent at Dec. 31, 2020. The ratio of the allowance for credit losses to nonperforming loans at March 31, 2021 was 389.4 percent, compared to 386.1 percent at Dec. 31, 2020 and 313.5 percent at March 31, 2020. Provision for credit losses was $7.2 million in the first quarter of 2021, compared to $7.2 million in the fourth quarter of 2020 and $99.9 million in the first quarter of 2020. First quarter 2020 provision for credit losses was impacted by the economic deterioration related to COVID-19.

"We continue to be pleased with our credit metrics and believe our performance is linked to our hiring philosophy and the client selection it yields, as well as the significant effort our relationship managers and credit officers have put forth over the past several quarters," Carpenter said. "Our credit metrics for the first quarter either improved or were consistent with those of last quarter. Classified and nonperforming ratios continued their downward trend again this quarter. Our allowance for credit losses to total loans ratio also decreased by 0.05 percent this quarter. Our current belief is that, with an improving economy there is likely to be further reductions in this ratio over the next several quarters."

REVENUES:

* Revenues for the quarter ended March 31, 2021 were $315.6 million, an increase of $11.2 million from the $304.4 million recognized in the fourth quarter of 2020, an annualized growth rate of 14.7 percent. Revenues were up $51.7 million from the first quarter of 2020, a year-over-year growth rate of 19.6 percent. Revenue per fully diluted common share was at an all-time record of $4.17 for the three months ended March 31, 2021, compared to $4.03 for the fourth quarter of 2020 and $3.47 for the first quarter of 2020, a 20.2 percent year-over-year growth rate. * Net interest income for the quarter ended March 31, 2021 was $222.9 million, compared to $221.0 million for the fourth quarter of 2020 and $193.6 million for the first quarter of 2020, a year-over-year growth rate of 15.1 percent. Net interest margin was 3.02 percent for the first quarter of 2021, compared to 2.97 percent for the fourth quarter of 2020 and 3.28 percent for the first quarter of 2020. Impacting the firm's net interest income and net interest margin in the first quarter of 2021 and fourth quarter of 2020 were both the PPP and the firm's maintenance of additional on-balance sheet liquidity as a result of the COVID-19 pandemic. Average PPP loans outstanding during both the first quarter of 2021 and fourth quarter of 2020 were $2.1 billion. Additionally, during those same periods, the firm maintained approximately $2.8 billion and $3.0 billion, respectively, in average excess liquidity, primarily in Federal funds sold and other cash equivalent balances. The firm estimates its first quarter 2021 net interest margin was negatively impacted by approximately 27 basis points as a result of PPP loans and excess liquidity, compared to approximately 30 basis points for the fourth quarter of 2020. Included in net interest income for the first quarter of 2021 was $3.8 million of discount accretion associated with fair value adjustments, compared to $4.4 million of discount accretion recognized in the fourth quarter of 2020 and $7.4 million in the first quarter of 2020. The firm's net interest margin was positively impacted by approximately 5 basis points, 6 basis points and 13 basis points, respectively, because of fair value adjustment discount accretion in each of the first quarter of 2021 and the fourth and first quarters of 2020. There remains $17.0 million of purchase accounting discount accretion as of March 31, 2021. * Noninterest income for the quarter ended March 31, 2021 was $92.7 million, compared to $83.4 million for the quarter ended Dec. 31, 2020, a linked-quarter annualized increase of 44.4 percent. Compared to $70.4 million for the first quarter of 2020, noninterest income grew 31.7 percent year-over-year. Wealth management revenues, which include investment, trust and insurance services, were $16.1 million for the first quarter of 2021, compared to $14.3 million for the fourth quarter of 2020, a linked-quarter annualized increase of 51.2 percent. Compared to $16.6 million for the first quarter of 2020, wealth management revenues were down 3.3 percent. Income from the firm's investment in BHG was $29.0 million for the quarter ended March 31, 2021, up from $24.3 million for the quarter ended Dec. 31, 2020 and $15.6 million for the quarter ended March 31, 2020. Net gains on mortgage loans sold were $13.7 million during the quarter ended March 31, 2021, up from $12.4 million for the quarter ended Dec. 31, 2020. Net gains on mortgage loans sold were up 59.2 percent from $8.6 million during the quarter ended March 31, 2020. 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 $25.7 million for the quarter ended March 31, 2021, compared to $24.0 million for the quarter ended Dec. 31, 2020 and $20.1 million for the quarter ended March 31, 2020, a year-over-year increase of 28.0 percent. Contributing to the year-over-year growth were $3.4 million in gains on other equity investments in the first quarter of 2021.

"We are reporting a net interest margin for the first quarter of 3.02 percent, which we estimate was negatively impacted by approximately 0.21 percent for PPP loans, excess liquidity and purchase accounting accretion, compared to a net interest margin of 2.97 percent in the fourth quarter of 2020, which we estimate was negatively impacted by the same items by 0.22 percent," Carpenter said. "As a result, we are very pleased with our net interest margin in the first quarter. Our average deposit costs were 0.26 percent in the first quarter, down 7 basis points from the fourth quarter, while our average total funding costs were down 9 basis points between the same two periods. We also reduced our wholesale funding base with reductions of approximately $1.0 billion of brokered funds and FHLB borrowings during the first quarter. We will continue to explore opportunities to deploy excess liquidity and thus improve our operating margins further.

"We had another strong fee quarter in the first quarter. Our wealth management businesses of investment, trust and insurance services had a very strong first quarter, reporting fee revenues of $16.1 million in the first quarter compared to $14.3 million in the fourth quarter, a linked-quarter annualized growth rate of over 50 percent. Mortgage and BHG both outperformed our initial expectations for the quarter. Our outlook for BHG in 2021 has improved since January 2021. We now believe BHG's 2021 revenues will exceed our previous expectations. We also believe our robust markets and increased number of mortgage originators will provide for another solid year for our mortgage origination business."

OPERATING LEVERAGE AND OTHER HIGHLIGHTS:

* The firm's efficiency ratio for the first quarter of 2021 was 49.0 percent, compared to 53.6 percent for the fourth quarter of 2020 and 52.0 percent in the first quarter of 2020. The ratio of noninterest expenses to average assets was 1.81 percent for the first quarter of 2021, compared to 1.89 percent in the fourth quarter of 2020 and 1.96 percent in the first quarter of 2020. Excluding the adjustments described above for both 2021 and 2020, the efficiency ratio was 49.0 percent for the first quarter of 2021, compared to 48.2 percent for the fourth quarter of 2020 and 51.2 percent for the first quarter of 2020. Excluding ORE expense for 2021 and 2020 and FHLB restructuring and hedge termination charges for the fourth quarter of 2020, the ratio of noninterest expense to average assets was 1.81 percent for the first quarter of 2021, compared to 1.70 percent for the fourth quarter of 2020 and 1.92 percent for the first quarter of 2020. * Noninterest expense for the quarter ended March 31, 2021 was $154.7 million, compared to $163.3 million in the fourth quarter of 2020 and $137.3 million in the first quarter of 2020, reflecting a year-over-year increase of 12.6 percent. Excluding ORE expense for 2021 and 2020, and FHLB restructuring and hedge termination charges for the fourth quarter of 2020, noninterest expense for the first quarter of 2021 increased 14.7 percent over the first quarter of 2020 and decreased 5.3 percent over the fourth quarter of 2020. Salaries and employee benefits were $102.7 million in the first quarter of 2021, compared to $90.0 million in the fourth quarter of 2020 and $80.5 million in the first quarter of 2020, reflecting a year-over-year increase of 27.6 percent. Incentive costs related to the firm's annual cash incentive plan amounted to approximately $18.2 million in the first quarter of 2021, compared to $13.4 million in the fourth quarter of 2020 and $4.7 million in the first quarter of 2020. Incentive costs related to the Company's equity compensation plans amounted to approximately $5.4 million in the first quarter of 2021 compared to $4.6 million in the fourth quarter of 2020 and $5.5 million first quarter of 2020. Noninterest expense categories, other than salaries and employee benefits, were $52.0 million in the first quarter of 2021, compared to $73.3 million in the fourth quarter of 2020 and $56.9 million in the first quarter of 2020, reflecting a year-over-year decrease of 8.6 percent. Expenses attributable to off-balance sheet reserves and costs attributable to FHLB restructuring and hedge termination charges were $17.0 million in the fourth quarter of last year, compared to no expense in the first quarter of 2021 and $5.2 million of expenses associated with off-balance sheet reserves in the first quarter of 2020. * The effective tax rate for the first quarter of 2021 was 18.4 percent, compared to 17.2 percent for the fourth quarter of 2020 and a benefit of 6.2 percent for the first quarter of 2020.

"As anticipated, we reported a large increase in linked quarter salaries and benefit costs in the first quarter due to $4.8 million in additional incentive costs from the fourth quarter of last year," Carpenter said. "As we reported last year, the pandemic negatively impacted our results and resulted in reduced cash and equity incentives charges in 2020. We anticipate an increase in our performance-based cash incentive awards in 2021, and through the first quarter have increased the accrual for a payout at above target levels."

WEBCAST AND CONFERENCE CALL INFORMATION

Pinnacle will host a webcast and conference call at 8:30 a.m. CT on April 20, 2021, to discuss first quarter 2021 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 fifth 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 $35.3 billion in assets as of March 31, 2021. 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) 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 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, decisions of governmental agencies to pause the use of one or more vaccines, those vaccines' efficacy against the virus and public acceptance of the vaccines; (iv) the failure of announced or anticipated stimulus programs to be timely approved, or approved at all, or the failure of such programs to provide sufficient relief when approved, and the resulting impact on the economy and our customers and their businesses; (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) 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; (xvii) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including goodwill or other intangible assets; (xviii) the ineffectiveness of Pinnacle Bank's hedging strategies, or the unexpected counterparty failure or hedge failure of the underlying hedges; (xix) 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; (xx) deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xxi) 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; (xxii) approval of the declaration of any dividend by Pinnacle Financial's board of directors; (xxiii) 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; (xxiv) 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; (xxv) 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 or all or a portion of their ownership interests in BHG if not prohibited from doing so by Pinnacle Financial or Pinnacle Bank; (xxvi) the possibility of increased personal or corporate tax rates and the resulting reduction in our and our customers' businesses as a result of any such increases; (xxvii) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, like BHG, including regulatory or legislative developments; (xxviii) the availability of and access to capital; (xxiv) 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 (xxx) general competitive, economic, political and market conditions. Additional factors which could affect the forward looking statements can be found in Pinnacle Financial's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the SEC and available on the SEC's website at http://www.sec.gov. Pinnacle Financial disclaims any obligation to update or revise any forward-looking statements contained in this press release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Matters

This release contains certain non-GAAP financial measures, including, without limitation, earnings per diluted common share, efficiency ratio and the ratio of noninterest expense to average assets, excluding in certain instances the impact of expenses related to other real estate owned, gains or losses on sale of investment securities, FHLB restructuring charges, hedge termination charges 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 2021 versus certain periods in 2020 and to internally prepared projections.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS - UNAUDITED



(dollars in thousands, except for March 31, 2021 December 31, March 31, 2020per share data) 2020

ASSETS

Cash and noninterest-bearing due $ 189,251 $ 203,296 $ 181,088 from banks

Restricted cash 162,834 223,788 243,313

Interest-bearing due from banks 2,780,137 3,522,224 598,084

Federal funds sold and other 55,186 12,141 1,883

Cash and cash equivalents 3,187,408 3,961,449 1,024,368

Securities purchased with 450,000 - - agreement to resell

Securities available-for-sale, at 3,677,019 3,586,681 3,030,564 fair value

Securities held-to-maturity (fairvalue of $1.0 billion, $1.1billion and $1.1 billion, net ofallowance for credit losses of 1,014,345 1,028,359 1,059,257 $198, $191 and $148 at March 31,2021, Dec. 31, 2020 and Mar. 31,2020, respectively)

Consumer loans held-for-sale 85,769 87,821 87,245

Commercial loans held-for-sale 12,541 31,200 6,850

Loans 23,086,701 22,424,501 20,396,853

Less allowance for credit losses (280,881 ) (285,050 ) (222,465 )

Loans, net 22,805,820 22,139,451 20,174,388

Premises and equipment, net 289,515 290,001 274,919

Equity method investment 327,512 308,556 285,671

Accrued interest receivable 98,477 104,078 82,198

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

Core deposits and other intangible 40,130 42,336 48,610 assets

Other real estate owned 10,651 12,360 27,182

Other assets 1,480,707 1,520,757 1,343,117

Total assets $ 35,299,705 $ 34,932,860 $ 29,264,180

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits:

Noninterest-bearing $ 8,103,943 $ 7,392,325 $ 4,963,415

Interest-bearing 5,814,689 5,689,095 4,025,382

Savings and money market accounts 11,361,620 11,099,523 8,144,409

Time 3,012,688 3,524,632 4,199,965

Total deposits 28,292,940 27,705,575 21,333,171

Securities sold under agreements 172,117 128,164 186,548 to repurchase

Federal Home Loan Bank advances 888,115 1,087,927 2,317,520

Subordinated debt and other 671,002 670,575 669,658 borrowings

Accrued interest payable 15,359 24,934 33,931

Other liabilities 300,648 411,074 338,224

Total liabilities 30,340,181 30,028,249 24,879,052

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 atMarch 31, 2021 and Dec. 31, 2020,respectively, and $0 issued andoutstanding at March 31, 2020

Common stock, par value $1.00;180.0 million shares authorized;76.1 million, 75.9 million and75.8 million shares issued and 76,088 75,850 75,800 outstanding at March 31, 2021,Dec. 31, 2020 and March 31, 2020respectively

Additional paid-in capital 3,027,311 3,028,063 3,015,521

Retained earnings 1,515,451 1,407,723 1,168,301

Accumulated other comprehensive 123,548 175,849 125,506 income, net of taxes

Total stockholders' equity 4,959,524 4,904,611 4,385,128

Total liabilities and $ 35,299,705 $ 34,932,860 $ 29,264,180 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

March 31, 2021

December 31, 2020

March 31, 2020

Interest income:

Loans, including fees

$

227,372

$

232,561

$

236,420

Securities

Taxable

7,728

7,530

10,268

Tax-exempt

15,498

15,446

13,824

Federal funds sold and other

1,319

1,510

2,557

Total interest income

251,917

257,047

263,069

Interest expense:

Deposits

17,468

22,721

50,698

Securities sold under agreements to repurchase

72

64

115

FHLB advances and other borrowings

11,507

13,277

18,704

Total interest expense

29,047

36,062

69,517

Net interest income

222,870

220,985

193,552

Provision for credit losses

7,235

7,180

99,889

Net interest income after provision for credit losses

215,635

213,805

93,663

Noninterest income:

Service charges on deposit accounts

8,307

8,486

9,032

Investment services

8,191

7,593

9,239

Insurance sales commissions

3,225

2,300

3,240

Gains on mortgage loans sold, net

13,666

12,387

8,583

Investment gains on sales, net

-

-

463

Trust fees

4,687

4,382

4,170

Income from equity method investment

28,950

24,294

15,592

Other noninterest income

25,683

24,002

20,058

Total noninterest income

92,709

83,444

70,377

Noninterest expense:

Salaries and employee benefits

102,728

90,013

80,480

Equipment and occupancy

23,220

23,849

20,978

Other real estate, net

(13

)

1,457

2,415

Marketing and other business development

2,349

2,979

3,251

Postage and supplies

1,806

1,998

1,990

Amortization of intangibles

2,206

2,377

2,520

Other noninterest expense

22,400

40,632

25,715

Total noninterest expense

154,696

163,305

137,349

Income before income taxes

153,648

133,944

26,691

Income tax expense (benefit)

28,220

23,068

(1,665

)

Net income

125,428

110,876

28,356

Preferred stock dividends

(3,798

)

(3,798

)

-

Net income available to common shareholders

$

121,630

$

107,078

$

28,356

Per share information:

Basic net income per common share

$

1.61

$

1.42

$

0.37

Diluted net income per common share

$

1.61

$

1.42

$

0.37

Weighted average common shares outstanding:

Basic

75,372,883

75,253,862

75,803,402

Diluted

75,657,149

75,583,986

75,966,295

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 in thousands, except for per Three months endedshare data)

March 31, December 31, March 31, 2021 2020 2020

Interest income:

Loans, including fees $ 227,372 $ 232,561 $ 236,420

Securities

Taxable 7,728 7,530 10,268

Tax-exempt 15,498 15,446 13,824

Federal funds sold and other 1,319 1,510 2,557

Total interest income 251,917 257,047 263,069

Interest expense:

Deposits 17,468 22,721 50,698

Securities sold under agreements to 72 64 115 repurchase

FHLB advances and other borrowings 11,507 13,277 18,704

Total interest expense 29,047 36,062 69,517

Net interest income 222,870 220,985 193,552

Provision for credit losses 7,235 7,180 99,889

Net interest income after provision for 215,635 213,805 93,663 credit losses

Noninterest income:

Service charges on deposit accounts 8,307 8,486 9,032

Investment services 8,191 7,593 9,239

Insurance sales commissions 3,225 2,300 3,240

Gains on mortgage loans sold, net 13,666 12,387 8,583

Investment gains on sales, net - - 463

Trust fees 4,687 4,382 4,170

Income from equity method investment 28,950 24,294 15,592

Other noninterest income 25,683 24,002 20,058

Total noninterest income 92,709 83,444 70,377

Noninterest expense:

Salaries and employee benefits 102,728 90,013 80,480

Equipment and occupancy 23,220 23,849 20,978

Other real estate, net (13 ) 1,457 2,415

Marketing and other business development 2,349 2,979 3,251

Postage and supplies 1,806 1,998 1,990

Amortization of intangibles 2,206 2,377 2,520

Other noninterest expense 22,400 40,632 25,715

Total noninterest expense 154,696 163,305 137,349

Income before income taxes 153,648 133,944 26,691

Income tax expense (benefit) 28,220 23,068 (1,665 )

Net income 125,428 110,876 28,356

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

Net income available to common $ 121,630 $ 107,078 $ 28,356 shareholders

Per share information:

Basic net income per common share $ 1.61 $ 1.42 $ 0.37

Diluted net income per common share $ 1.61 $ 1.42 $ 0.37

Weighted average common shares outstanding:

Basic 75,372,883 75,253,862 75,803,402

Diluted 75,657,149 75,583,986 75,966,295

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)

March

December

September

June

March

December

2021

2020

2020

2020

2020

2019

Balance sheet data, at quarter end:

Commercial and industrial loans

$

6,355,119

6,239,588

6,144,949

6,293,709

6,752,317

6,290,296

Commercial real estate - owner occupied loans

2,869,785

2,802,227

2,748,075

2,708,306

2,650,170

2,669,766

Commercial real estate - investment loans

4,782,712

4,565,040

4,648,457

4,822,537

4,520,234

4,418,658

Commercial real estate - multifamily and other loans

790,469

638,344

571,995

561,481

550,338

620,794

Consumer real estate - mortgage loans

3,086,916

3,099,172

3,041,019

3,042,604

3,106,465

3,068,625

Construction and land development loans

2,568,969

2,901,746

2,728,439

2,574,494

2,520,937

2,430,483

Consumer and other loans

411,322

379,515

343,461

294,545

296,392

289,254

Paycheck protection program loans

2,221,409

1,798,869

2,251,014

2,222,624

-

-

Total loans

23,086,701

22,424,501

22,477,409

22,520,300

20,396,853

19,787,876

Allowance for credit losses

(280,881

)

(285,050

)

(288,645

)

(285,372

)

(222,465

)

(94,777

)

Securities

4,691,364

4,615,040

4,503,072

4,358,313

4,089,821

3,728,991

Total assets

35,299,705

34,932,860

33,824,931

33,342,112

29,264,180

27,805,496

Noninterest-bearing deposits

8,103,943

7,392,325

7,050,670

6,892,864

4,963,415

4,795,476

Total deposits

28,292,940

27,705,575

26,543,956

25,521,829

21,333,171

20,181,028

Securities sold under agreements to repurchase

172,117

128,164

127,059

194,553

186,548

126,354

FHLB advances

888,115

1,087,927

1,287,738

1,787,551

2,317,520

2,062,534

Subordinated debt and other borrowings

671,002

670,575

670,273

717,043

669,658

749,080

Total stockholders' equity

4,959,524

4,904,611

4,787,308

4,695,647

4,385,128

4,355,748

Balance sheet data, quarterly averages:

Total loans

$

22,848,086

22,524,683

22,493,192

22,257,168

20,009,288

19,599,620

Securities

4,666,269

4,567,872

4,420,280

4,194,811

3,814,543

3,662,829

Federal funds sold and other

3,356,199

3,621,623

3,279,248

2,618,832

807,796

717,927

Total earning assets

30,870,554

30,714,178

30,192,720

29,070,811

24,631,627

23,980,376

Total assets

34,659,132

34,436,765

33,838,716

32,785,391

28,237,642

27,604,774

Noninterest-bearing deposits

7,620,665

7,322,393

6,989,439

6,432,010

4,759,729

4,834,694

Total deposits

27,620,784

27,193,256

26,352,823

24,807,032

20,679,455

20,078,594

Securities sold under agreements to repurchase

143,586

121,331

147,211

191,084

141,192

109,127

FHLB advances

934,662

1,250,848

1,515,879

2,213,769

2,029,888

1,992,213

Subordinated debt and other borrowings

673,662

673,419

715,138

706,657

673,415

753,244

Total stockholders' equity

4,953,656

4,852,373

4,765,864

4,499,438

4,417,155

4,343,246

Statement of operations data, for the three months ended:

Interest income

$

251,917

257,047

249,188

251,738

263,069

268,453

Interest expense

29,047

36,062

42,594

51,081

69,517

74,281

Net interest income

222,870

220,985

206,594

200,657

193,552

194,172

Provision for credit losses

7,235

7,180

16,333

68,332

99,889

4,644

Net interest income after provision for credit losses

215,635

213,805

190,261

132,325

93,663

189,528

Noninterest income

92,709

83,444

91,065

72,954

70,377

59,462

Noninterest expense

154,696

163,305

144,277

131,605

137,349

130,470

Income before taxes

153,648

133,944

137,049

73,674

26,691

118,520

Income tax (benefit) expense

28,220

23,068

26,404

11,230

(1,665

)

22,441

Net income

125,428

110,876

110,645

62,444

28,356

96,079

Preferred stock dividends

(3,798

)

(3,798

)

(3,798

)

-

-

-

Net income available to common shareholders

$

121,630

107,078

106,847

62,444

28,356

96,079

Profitability and other ratios:

Return on avg. assets (1)

1.42

%

1.24

%

1.26

%

0.77

%

0.40

%

1.38

%

Return on avg. equity (1)

9.96

%

8.78

%

8.92

%

5.58

%

2.58

%

8.78

%

Return on avg. common equity (1)

10.41

%

9.19

%

9.35

%

5.66

%

2.58

%

8.78

%

Return on avg. tangible common equity (1)

17.16

%

15.37

%

15.85

%

9.77

%

4.48

%

15.41

%

Common stock dividend payout ratio (16)

13.69

%

15.84

%

16.49

%

16.41

%

14.61

%

12.24

%

Net interest margin (2)

3.02

%

2.97

%

2.82

%

2.87

%

3.28

%

3.35

%

Noninterest income to total revenue (3)

29.38

%

27.41

%

30.59

%

26.66

%

26.67

%

23.44

%

Noninterest income to avg. assets (1)

1.08

%

0.96

%

1.07

%

0.89

%

1.00

%

0.85

%

Noninterest exp. to avg. assets (1)

1.81

%

1.89

%

1.70

%

1.61

%

1.96

%

1.88

%

Efficiency ratio (4)

49.02

%

53.64

%

48.47

%

48.10

%

52.04

%

51.44

%

Avg. loans to avg. deposits

82.72

%

82.83

%

85.35

%

89.72

%

96.76

%

97.61

%

Securities to total assets

13.29

%

13.21

%

13.31

%

13.07

%

13.98

%

13.41

%

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 March December September June March Decemberthousands) 2021 2020 2020 2020 2020 2019

Balance sheet data, at quarter end:

Commercial and $ 6,355,119 6,239,588 6,144,949 6,293,709 6,752,317 6,290,296 industrial loans

Commercial realestate - owner 2,869,785 2,802,227 2,748,075 2,708,306 2,650,170 2,669,766 occupied loans

Commercial realestate - investment 4,782,712 4,565,040 4,648,457 4,822,537 4,520,234 4,418,658 loans

Commercial realestate - 790,469 638,344 571,995 561,481 550,338 620,794 multifamily andother loans

Consumer realestate - mortgage 3,086,916 3,099,172 3,041,019 3,042,604 3,106,465 3,068,625 loans

Construction andland development 2,568,969 2,901,746 2,728,439 2,574,494 2,520,937 2,430,483 loans

Consumer and other 411,322 379,515 343,461 294,545 296,392 289,254 loans

Paycheck protection 2,221,409 1,798,869 2,251,014 2,222,624 - - program loans

Total loans 23,086,701 22,424,501 22,477,409 22,520,300 20,396,853 19,787,876

Allowance for (280,881 ) (285,050 ) (288,645 ) (285,372 ) (222,465 ) (94,777 )credit losses

Securities 4,691,364 4,615,040 4,503,072 4,358,313 4,089,821 3,728,991

Total assets 35,299,705 34,932,860 33,824,931 33,342,112 29,264,180 27,805,496

Noninterest-bearing 8,103,943 7,392,325 7,050,670 6,892,864 4,963,415 4,795,476 deposits

Total deposits 28,292,940 27,705,575 26,543,956 25,521,829 21,333,171 20,181,028

Securities soldunder agreements to 172,117 128,164 127,059 194,553 186,548 126,354 repurchase

FHLB advances 888,115 1,087,927 1,287,738 1,787,551 2,317,520 2,062,534

Subordinated debtand other 671,002 670,575 670,273 717,043 669,658 749,080 borrowings

Total stockholders' 4,959,524 4,904,611 4,787,308 4,695,647 4,385,128 4,355,748 equity

Balance sheet data, quarterly averages:

Total loans $ 22,848,086 22,524,683 22,493,192 22,257,168 20,009,288 19,599,620

Securities 4,666,269 4,567,872 4,420,280 4,194,811 3,814,543 3,662,829

Federal funds sold 3,356,199 3,621,623 3,279,248 2,618,832 807,796 717,927 and other

Total earning 30,870,554 30,714,178 30,192,720 29,070,811 24,631,627 23,980,376 assets

Total assets 34,659,132 34,436,765 33,838,716 32,785,391 28,237,642 27,604,774

Noninterest-bearing 7,620,665 7,322,393 6,989,439 6,432,010 4,759,729 4,834,694 deposits

Total deposits 27,620,784 27,193,256 26,352,823 24,807,032 20,679,455 20,078,594

Securities soldunder agreements to 143,586 121,331 147,211 191,084 141,192 109,127 repurchase

FHLB advances 934,662 1,250,848 1,515,879 2,213,769 2,029,888 1,992,213

Subordinated debtand other 673,662 673,419 715,138 706,657 673,415 753,244 borrowings

Total stockholders' 4,953,656 4,852,373 4,765,864 4,499,438 4,417,155 4,343,246 equity

Statement of operations data, for the three months ended:

Interest income $ 251,917 257,047 249,188 251,738 263,069 268,453

Interest expense 29,047 36,062 42,594 51,081 69,517 74,281

Net interest income 222,870 220,985 206,594 200,657 193,552 194,172

Provision for 7,235 7,180 16,333 68,332 99,889 4,644 credit losses

Net interest incomeafter provision for 215,635 213,805 190,261 132,325 93,663 189,528 credit losses

Noninterest income 92,709 83,444 91,065 72,954 70,377 59,462

Noninterest expense 154,696 163,305 144,277 131,605 137,349 130,470

Income before taxes 153,648 133,944 137,049 73,674 26,691 118,520

Income tax 28,220 23,068 26,404 11,230 (1,665 ) 22,441 (benefit) expense

Net income 125,428 110,876 110,645 62,444 28,356 96,079

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

Net incomeavailable to common $ 121,630 107,078 106,847 62,444 28,356 96,079 shareholders

Profitability and other ratios:

Return on avg. 1.42 % 1.24 % 1.26 % 0.77 % 0.40 % 1.38 %assets ^(1)

Return on avg. 9.96 % 8.78 % 8.92 % 5.58 % 2.58 % 8.78 %equity ^(1)

Return on avg. 10.41 % 9.19 % 9.35 % 5.66 % 2.58 % 8.78 %common equity^ (1)

Return on avg.tangible common 17.16 % 15.37 % 15.85 % 9.77 % 4.48 % 15.41 %equity ^(1)

Common stockdividend payout 13.69 % 15.84 % 16.49 % 16.41 % 14.61 % 12.24 %ratio ^(16)

Net interest margin 3.02 % 2.97 % 2.82 % 2.87 % 3.28 % 3.35 %^ (2)

Noninterest incometo total revenue ^ 29.38 % 27.41 % 30.59 % 26.66 % 26.67 % 23.44 %(3)

Noninterest income 1.08 % 0.96 % 1.07 % 0.89 % 1.00 % 0.85 %to avg. assets ^(1)

Noninterest exp. to 1.81 % 1.89 % 1.70 % 1.61 % 1.96 % 1.88 %avg. assets ^(1)

Efficiency ratio ^ 49.02 % 53.64 % 48.47 % 48.10 % 52.04 % 51.44 %(4)

Avg. loans to avg. 82.72 % 82.83 % 85.35 % 89.72 % 96.76 % 97.61 %deposits

Securities to total 13.29 % 13.21 % 13.31 % 13.07 % 13.98 % 13.41 %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

March 31, 2021

March 31, 2020

Average Balances

Interest

Rates/ Yields

Average Balances

Interest

Rates/ Yields

Interest-earning assets

Loans (1) (2)

$

22,848,086

$

227,372

4.11

%

$

20,009,288

$

236,420

4.84

%

Securities

Taxable

2,271,325

7,728

1.38

%

1,924,629

10,268

2.15

%

Tax-exempt (2)

2,394,944

15,498

3.15

%

1,889,914

13,824

3.51

%

Federal funds sold and other

3,356,199

1,319

0.16

%

807,796

2,557

1.27

%

Total interest-earning assets

30,870,554

$

251,917

3.41

%

24,631,627

$

263,069

4.41

%

Nonearning assets

Intangible assets

1,861,386

1,870,063

Other nonearning assets

1,927,192

1,735,952

Total assets

$

34,659,132

$

28,237,642

Interest-bearing liabilities

Interest-bearing deposits:

Interest checking

5,466,389

2,599

0.19

%

3,745,280

8,467

0.91

%

Savings and money market

11,321,344

6,713

0.24

%

8,097,549

20,435

1.01

%

Time

3,212,386

8,156

1.03

%

4,076,897

21,796

2.15

%

Total interest-bearing deposits

20,000,119

17,468

0.35

%

15,919,726

50,698

1.28

%

Securities sold under agreements to repurchase

143,586

72

0.20

%

141,192

115

0.33

%

Federal Home Loan Bank advances

934,662

4,494

1.95

%

2,029,888

10,407

2.06

%

Subordinated debt and other borrowings

673,662

7,013

4.22

%

673,415

8,297

4.96

%

Total interest-bearing liabilities

21,752,029

29,047

0.54

%

18,764,221

69,517

1.49

%

Noninterest-bearing deposits

7,620,665

-

-

4,759,729

-

-

Total deposits and interest-bearing liabilities

29,372,694

$

29,047

0.40

%

23,523,950

$

69,517

1.19

%

Other liabilities

332,782

296,537

Stockholders' equity

4,953,656

4,417,155

Total liabilities and stockholders' equity

$

34,659,132

$

28,237,642

Netinterestincome

$

222,870

$

193,552

Net interest spread (3)

2.86

%

2.92

%

Net interest margin (4)

3.02

%

3.28

%

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

(2) Yields computed on tax-exempt instruments on a tax equivalent basis and included $7.3 million of taxable equivalent income for the three months ended March 31, 2021 compared to $7.0 million for the three months ended March 31, 2020. 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 March 31, 2021 would have been 3.00% compared to a net interest spread of 3.22% for the three months ended March 31, 2020.

(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) March 31, 2021 March 31, 2020

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

Interest-earning assets

Loans^ (1) (2) $ 22,848,086 $ 227,372 4.11 % $ 20,009,288 $ 236,420 4.84 %

Securities

Taxable 2,271,325 7,728 1.38 % 1,924,629 10,268 2.15 %

Tax-exempt ^(2) 2,394,944 15,498 3.15 % 1,889,914 13,824 3.51 %

Federal funds sold 3,356,199 1,319 0.16 % 807,796 2,557 1.27 %and other

Totalinterest-earning 30,870,554 $ 251,917 3.41 % 24,631,627 $ 263,069 4.41 %assets

Nonearning assets

Intangible assets 1,861,386 1,870,063

Other nonearning 1,927,192 1,735,952 assets

Total assets $ 34,659,132 $ 28,237,642



Interest-bearing liabilities

Interest-bearing deposits:

Interest checking 5,466,389 2,599 0.19 % 3,745,280 8,467 0.91 %

Savings and money 11,321,344 6,713 0.24 % 8,097,549 20,435 1.01 %market

Time 3,212,386 8,156 1.03 % 4,076,897 21,796 2.15 %

Totalinterest-bearing 20,000,119 17,468 0.35 % 15,919,726 50,698 1.28 %deposits

Securities soldunder agreements to 143,586 72 0.20 % 141,192 115 0.33 %repurchase

Federal Home Loan 934,662 4,494 1.95 % 2,029,888 10,407 2.06 %Bank advances

Subordinated debtand other 673,662 7,013 4.22 % 673,415 8,297 4.96 %borrowings

Totalinterest-bearing 21,752,029 29,047 0.54 % 18,764,221 69,517 1.49 %liabilities

Noninterest-bearing 7,620,665 - - 4,759,729 - - deposits

Total deposits andinterest-bearing 29,372,694 $ 29,047 0.40 % 23,523,950 $ 69,517 1.19 %liabilities

Other liabilities 332,782 296,537

Stockholders' 4,953,656 4,417,155 equity

Total liabilitiesand stockholders' $ 34,659,132 $ 28,237,642 equity

Net interest income $ 222,870 $ 193,552

Net interest spread 2.86 % 2.92 %^(3)

Net interest margin 3.02 % 3.28 %^(4)



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

(2) Yields computed on tax-exempt instruments on a tax equivalent basis andincluded $7.3 million of taxable equivalent income for the three months endedMarch 31, 2021 compared to $7.0 million for the three months ended March 31,2020. 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 March 31, 2021 would have been3.00% compared to a net interest spread of 3.22% for the three months endedMarch 31, 2020.

(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)

March

December

September

June

March

December

2021

2020

2020

2020

2020

2019

Asset quality information and ratios:

Nonperforming assets:

Nonaccrual loans

$

72,135

73,836

71,390

62,562

70,970

61,605

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

10,651

12,360

19,445

22,105

27,182

29,487

Total nonperforming assets

$

82,786

86,196

90,835

84,667

98,152

91,092

Past due loans over 90 days and still accruing interest

$

2,833

2,362

1,313

1,982

1,990

1,615

Accruing troubled debt restructurings (5)

$

2,460

2,494

2,588

3,274

3,869

4,850

Accruing purchase credit deteriorated loans

$

13,904

14,091

14,346

14,616

13,984

13,249

Net loan charge-offs

$

11,397

10,775

13,057

5,384

10,155

3,515

Allowance for credit losses to nonaccrual loans

389.4

%

386.1

%

404.3

%

456.1

%

313.5

%

153.8

%

As a percentage of total loans:

Past due accruing loans over 30 days

0.09

%

0.19

%

0.11

%

0.09

%

0.17

%

0.18

%

Potential problem loans (6)

0.70

%

0.77

%

0.96

%

1.12

%

1.22

%

1.39

%

Allowance for credit losses (20)

1.22

%

1.27

%

1.28

%

1.27

%

1.09

%

0.48

%

Nonperforming assets to total loans, ORE and other NPAs

0.36

%

0.38

%

0.40

%

0.38

%

0.48

%

0.46

%

Classified asset ratio (Pinnacle Bank) (8)

7.3

%

8.1

%

9.9

%

11.2

%

12.0

%

13.4

%

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

0.20

%

0.19

%

0.23

%

0.10

%

0.20

%

0.07

%

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

45.2

45.1

45.2

45.1

45.0

44.9

Interest rates and yields:

Loans

4.11

%

4.20

%

4.04

%

4.16

%

4.84

%

5.00

%

Securities

2.29

%

2.27

%

2.38

%

2.59

%

2.82

%

2.85

%

Total earning assets

3.41

%

3.44

%

3.38

%

3.58

%

4.41

%

4.58

%

Total deposits, including non-interest bearing

0.26

%

0.33

%

0.43

%

0.55

%

0.99

%

1.10

%

Securities sold under agreements to repurchase

0.20

%

0.21

%

0.21

%

0.20

%

0.33

%

0.48

%

FHLB advances

1.95

%

2.00

%

1.82

%

1.73

%

2.06

%

2.10

%

Subordinated debt and other borrowings

4.22

%

4.13

%

3.99

%

4.42

%

4.96

%

4.04

%

Total deposits and interest-bearing liabilities

0.40

%

0.49

%

0.59

%

0.74

%

1.19

%

1.29

%

Capital and other ratios (8):

Pinnacle Financial ratios:

Stockholders' equity to total assets

14.0

%

14.0

%

14.2

%

14.1

%

15.0

%

15.7

%

Common equity Tier one

10.3

%

10.0

%

9.9

%

9.6

%

9.4

%

9.7

%

Tier one risk-based

11.2

%

10.9

%

10.7

%

10.4

%

9.4

%

9.7

%

Total risk-based

14.5

%

14.3

%

14.2

%

14.0

%

12.8

%

13.2

%

Leverage

8.9

%

8.6

%

8.5

%

8.4

%

8.8

%

9.1

%

Tangible common equity to tangible assets

8.6

%

8.5

%

8.5

%

8.3

%

9.2

%

9.6

%

Pinnacle Bank ratios:

Common equity Tier one

11.8

%

11.4

%

11.3

%

11.0

%

11.0

%

11.2

%

Tier one risk-based

11.8

%

11.4

%

11.3

%

11.0

%

11.0

%

11.2

%

Total risk-based

13.0

%

12.7

%

12.6

%

12.4

%

12.2

%

12.2

%

Leverage

9.4

%

9.1

%

8.9

%

8.9

%

10.3

%

10.5

%

Construction and land development loans

as a percentage of total capital (19)

76.0

%

89.0

%

86.7

%

83.6

%

84.2

%

83.6

%

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

256.0

%

264.0

%

268.8

%

275.0

%

264.1

%

268.3

%

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



March December September June March December(dollars in thousands) 2021 2020 2020 2020 2020 2019

Asset qualityinformation and ratios:

Nonperforming assets:

Nonaccrual loans $ 72,135 73,836 71,390 62,562 70,970 61,605

Other real estate(ORE) and other 10,651 12,360 19,445 22,105 27,182 29,487 nonperforming assets(NPAs)

Total nonperforming $ 82,786 86,196 90,835 84,667 98,152 91,092 assets

Past due loans over 90days and still $ 2,833 2,362 1,313 1,982 1,990 1,615 accruing interest

Accruing troubled debt $ 2,460 2,494 2,588 3,274 3,869 4,850 restructurings ^(5)

Accruing purchasecredit deteriorated $ 13,904 14,091 14,346 14,616 13,984 13,249 loans

Net loan charge-offs $ 11,397 10,775 13,057 5,384 10,155 3,515

Allowance for creditlosses to nonaccrual 389.4 % 386.1 % 404.3 % 456.1 % 313.5 % 153.8 %loans

As a percentage of total loans:

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

Potential problem 0.70 % 0.77 % 0.96 % 1.12 % 1.22 % 1.39 %loans ^(6)

Allowance for credit 1.22 % 1.27 % 1.28 % 1.27 % 1.09 % 0.48 %losses ^(20)

Nonperforming assetsto total loans, ORE 0.36 % 0.38 % 0.40 % 0.38 % 0.48 % 0.46 %and other NPAs

Classified asset ratio 7.3 % 8.1 % 9.9 % 11.2 % 12.0 % 13.4 %(Pinnacle Bank) ^(8)

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

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



Interest rates and yields:

Loans 4.11 % 4.20 % 4.04 % 4.16 % 4.84 % 5.00 %

Securities 2.29 % 2.27 % 2.38 % 2.59 % 2.82 % 2.85 %

Total earning assets 3.41 % 3.44 % 3.38 % 3.58 % 4.41 % 4.58 %

Total deposits,including non-interest 0.26 % 0.33 % 0.43 % 0.55 % 0.99 % 1.10 %bearing

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

FHLB advances 1.95 % 2.00 % 1.82 % 1.73 % 2.06 % 2.10 %

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

Total deposits andinterest-bearing 0.40 % 0.49 % 0.59 % 0.74 % 1.19 % 1.29 %liabilities



Capital and other ratios ^(8):

Pinnacle Financial ratios:

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

Common equity Tier one 10.3 % 10.0 % 9.9 % 9.6 % 9.4 % 9.7 %

Tier one risk-based 11.2 % 10.9 % 10.7 % 10.4 % 9.4 % 9.7 %

Total risk-based 14.5 % 14.3 % 14.2 % 14.0 % 12.8 % 13.2 %

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

Tangible common equity 8.6 % 8.5 % 8.5 % 8.3 % 9.2 % 9.6 %to tangible assets

Pinnacle Bank ratios:

Common equity Tier one 11.8 % 11.4 % 11.3 % 11.0 % 11.0 % 11.2 %

Tier one risk-based 11.8 % 11.4 % 11.3 % 11.0 % 11.0 % 11.2 %

Total risk-based 13.0 % 12.7 % 12.6 % 12.4 % 12.2 % 12.2 %

Leverage 9.4 % 9.1 % 8.9 % 8.9 % 10.3 % 10.5 %

Construction and landdevelopment loans 76.0 % 89.0 % 86.7 % 83.6 % 84.2 % 83.6 %as a percentage oftotal capital ^(19)

Non-owner occupiedcommercial real estateand multi-family as a 256.0 % 264.0 % 268.8 % 275.0 % 264.1 % 268.3 %percentage 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)

March

December

September

June

March

December

2021

2020

2020

2020

2020

2019

Per share data:

Earnings per common share - basic

$

1.61

1.42

1.42

0.83

0.37

1.26

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

$

1.61

1.58

1.45

0.89

0.39

1.27

Earnings per common share - diluted

$

1.61

1.42

1.42

0.83

0.37

1.26

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

$

1.61

1.58

1.45

0.89

0.39

1.27

Common dividends per share

$

0.18

0.16

0.16

0.16

0.16

0.16

Book value per common share at quarter end (9)

$

62.33

61.80

60.26

59.05

57.85

56.89

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

$

37.88

37.25

35.68

34.43

33.20

32.45

Revenue per diluted common share

$

4.17

4.03

3.95

3.63

3.47

3.32

Revenue per diluted common share, excluding non-GAAP adjustments

$

4.17

4.03

3.94

3.63

3.47

3.32

Investor information:

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

$

88.66

64.40

35.59

41.99

37.54

64.00

High closing sales price of common stock during quarter

$

93.58

65.51

44.47

48.98

64.03

64.80

Low closing sales price of common stock during quarter

$

63.48

35.97

33.28

33.24

31.98

54.58

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

$

27.62

27.69

26.49

25.98

-

-

High closing sales price of depositary shares during quarter

$

27.83

27.94

26.82

26.05

-

-

Low closing sales price of depositary shares during quarter

$

26.83

26.45

25.51

25.19

-

-

Other information:

Residential mortgage loan sales:

Gross loans sold

$

546,963

479,867

511,969

550,704

286,703

322,228

Gross fees (10)

$

18,793

23,729

23,557

16,381

9,490

9,953

Gross fees as a percentage of loans originated

3.44

%

4.94

%

4.60

%

2.97

%

3.31

%

3.09

%

Net gain on residential mortgage loans sold

$

13,666

12,387

19,453

19,619

8,583

6,044

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

$

-

-

651

(128)

463

68

Brokerage account assets, at quarter end (11)

$

5,974,884

5,509,560

4,866,726

4,499,856

4,000,643

4,636,441

Trust account managed assets, at quarter end

$

3,443,373

3,295,198

2,978,035

2,908,131

2,714,582

2,942,811

Core deposits (12)

$

24,971,177

23,510,883

22,003,989

21,391,794

18,604,262

17,617,479

Core deposits to total funding (12)

83.1

%

79.5

%

76.9

%

75.8

%

75.9

%

76.2

%

Risk-weighted assets

$

26,105,158

25,791,896

25,189,944

24,937,535

24,600,490

23,911,064

Number of offices

115

114

114

113

111

111

Total core deposits per office

$

217,141

206,236

193,017

189,308

167,606

158,716

Total assets per full-time equivalent employee

$

13,468

13,262

13,027

12,936

11,422

11,180

Annualized revenues per full-time equivalent employee

$

488.3

459.8

456.1

426.9

414.3

404.6

Annualized expenses per full-time equivalent employee

$

239.4

246.6

221.1

205.4

215.6

208.1

Number of employees (full-time equivalent)

2,621.0

2,634.0

2,596.5

2,577.5

2,562.0

2,487.0

Associate retention rate (13)

94.4

%

94.8

%

94.4

%

94.5

%

93.5

%

92.8

%

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 March December September June March Decemberthousands,except pershare data) 2021 2020 2020 2020 2020 2019



Per share data:

Earnings percommon share $ 1.61 1.42 1.42 0.83 0.37 1.26 - basic

Earnings percommon share- basic, $ 1.61 1.58 1.45 0.89 0.39 1.27 excludingnon-GAAPadjustments

Earnings percommon share $ 1.61 1.42 1.42 0.83 0.37 1.26 - diluted

Earnings percommon share- diluted, $ 1.61 1.58 1.45 0.89 0.39 1.27 excludingnon-GAAPadjustments

Commondividends per $ 0.18 0.16 0.16 0.16 0.16 0.16 share

Book valueper commonshare at $ 62.33 61.80 60.26 59.05 57.85 56.89 quarter end ^(9)

Tangible bookvalue percommon share $ 37.88 37.25 35.68 34.43 33.20 32.45 at quarterend ^(9)

Revenue perdiluted $ 4.17 4.03 3.95 3.63 3.47 3.32 common share

Revenue perdilutedcommon share, $ 4.17 4.03 3.94 3.63 3.47 3.32 excludingnon-GAAPadjustments



Investor information:

Closing salesprice ofcommon stock $ 88.66 64.40 35.59 41.99 37.54 64.00 on lasttrading dayof quarter

High closingsales priceof common $ 93.58 65.51 44.47 48.98 64.03 64.80 stock duringquarter

Low closingsales priceof common $ 63.48 35.97 33.28 33.24 31.98 54.58 stock duringquarter



Closing salesprice ofdepositaryshares on $ 27.62 27.69 26.49 25.98 - - last tradingday ofquarter

High closingsales priceof depositary $ 27.83 27.94 26.82 26.05 - - shares duringquarter

Low closingsales priceof depositary $ 26.83 26.45 25.51 25.19 - - shares duringquarter



Other information:

Residentialmortgage loan sales:

Gross loans $ 546,963 479,867 511,969 550,704 286,703 322,228 sold

Gross fees ^ $ 18,793 23,729 23,557 16,381 9,490 9,953 (10)

Gross fees asa percentage 3.44 % 4.94 % 4.60 % 2.97 % 3.31 % 3.09 %of loansoriginated

Net gain onresidential $ 13,666 12,387 19,453 19,619 8,583 6,044 mortgageloans sold

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

Brokerageaccountassets, at $ 5,974,884 5,509,560 4,866,726 4,499,856 4,000,643 4,636,441 quarter end ^(11)

Trust accountmanaged $ 3,443,373 3,295,198 2,978,035 2,908,131 2,714,582 2,942,811 assets, atquarter end

Core deposits $ 24,971,177 23,510,883 22,003,989 21,391,794 18,604,262 17,617,479 ^(12)

Core depositsto total 83.1 % 79.5 % 76.9 % 75.8 % 75.9 % 76.2 %funding ^(12)

Risk-weighted $ 26,105,158 25,791,896 25,189,944 24,937,535 24,600,490 23,911,064 assets

Number of 115 114 114 113 111 111 offices

Total coredeposits per $ 217,141 206,236 193,017 189,308 167,606 158,716 office

Total assetsper full-time $ 13,468 13,262 13,027 12,936 11,422 11,180 equivalentemployee

Annualizedrevenues perfull-time $ 488.3 459.8 456.1 426.9 414.3 404.6 equivalentemployee

Annualizedexpenses perfull-time $ 239.4 246.6 221.1 205.4 215.6 208.1 equivalentemployee

Number ofemployees 2,621.0 2,634.0 2,596.5 2,577.5 2,562.0 2,487.0 (full-timeequivalent)

Associateretention 94.4 % 94.8 % 94.4 % 94.5 % 93.5 % 92.8 %rate ^(13)



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

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

Three months ended

(dollars in thousands, except per share data)

March

December

March

2021

2020

2020

Net interest income

$

222,870

220,985

193,552

Noninterest income

92,709

83,444

70,377

Total revenues

315,579

304,429

263,929

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

-

-

(463

)

Total revenues excluding the impact of adjustments noted above

$

315,579

304,429

263,466

Noninterest expense

$

154,696

163,305

137,349

Less: Other real estate (ORE) expense

(13

)

1,457

2,415

FHLB restructuring charges

-

10,307

-

Hedge termination charges

-

4,673

-

Noninterest expense excluding the impact of adjustments noted above

$

154,709

146,868

134,934

Pre-tax income

$

153,648

133,944

26,691

Provision for credit losses

7,235

7,180

99,889

Pre-tax pre-provision net revenue

160,883

141,124

126,580

Adjustments noted above

(13

)

16,437

1,952

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

$

160,870

157,561

128,532

Noninterest income

$

92,709

83,444

70,377

Less: Adjustments as noted above

-

-

(463

)

Noninterest income excluding the impact of adjustments noted above

$

92,709

83,444

69,914

Efficiency ratio (4)

49.02

%

53.64

%

52.04

%

Adjustments as noted above

-

%

(5.40

)%

(0.83

)%

Efficiency ratio (excluding adjustments noted above)

49.02

%

48.24

%

51.21

%

Total average assets

$

34,659,132

34,436,765

28,237,642

Noninterest income to average assets (1)

1.08

%

0.96

%

1.00

%

Adjustments as noted above

-

%

-

%

-

%

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

1.08

%

0.96

%

1.00

%

Noninterest expense to average assets (1)

1.81

%

1.89

%

1.96

%

Adjustments as noted above

-

%

(0.19

)%

(0.04

)%

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

1.81

%

1.70

%

1.92

%

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 thousands, except per March December Marchshare data) 2021 2020 2020



Net interest income $ 222,870 220,985 193,552



Noninterest income 92,709 83,444 70,377

Total revenues 315,579 304,429 263,929

Less: Investment (gains) losses on - - (463 )sales of securities, net

Total revenues excluding the impact of $ 315,579 304,429 263,466 adjustments noted above



Noninterest expense $ 154,696 163,305 137,349

Less: Other real estate (ORE) expense (13 ) 1,457 2,415

FHLB restructuring charges - 10,307 -

Hedge termination charges - 4,673 -

Noninterest expense excluding the $ 154,709 146,868 134,934 impact of adjustments noted above



Pre-tax income $ 153,648 133,944 26,691

Provision for credit losses 7,235 7,180 99,889

Pre-tax pre-provision net revenue 160,883 141,124 126,580

Adjustments noted above (13 ) 16,437 1,952

Adjusted pre-tax pre-provision net $ 160,870 157,561 128,532 revenue^(14)





Noninterest income $ 92,709 83,444 70,377

Less: Adjustments as noted above - - (463 )

Noninterest income excluding the $ 92,709 83,444 69,914 impact of adjustments noted above



Efficiency ratio ^(4) 49.02 % 53.64 % 52.04 %

Adjustments as noted above - % (5.40 ) (0.83 ) % %

Efficiency ratio (excluding 49.02 % 48.24 % 51.21 %adjustments noted above)



Total average assets $ 34,659,132 34,436,765 28,237,642



Noninterest income to average assets ^ 1.08 % 0.96 % 1.00 %(1)

Adjustments as noted above - % - % - %

Noninterest income (excludingadjustments noted above) to average 1.08 % 0.96 % 1.00 %assets ^(1)



Noninterest expense to average assets 1.81 % 1.89 % 1.96 %^(1)

Adjustments as noted above - % (0.19 ) (0.04 ) % %

Noninterest expense (excludingadjustments noted above) to average 1.81 % 1.70 % 1.92 %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)

March

December

September

June

March

December

2021

2020

2020

2020

2020

2019

Net income available to common shareholders

$

121,630

107,078

106,847

62,444

28,356

96,079

Investment (gains) losses on sales of securities, net

-

-

(651

)

128

(463

)

(68

)

ORE expense

(13

)

1,457

1,795

2,888

2,415

804

FHLB restructuring charges

-

10,307

1,991

2,870

-

-

Hedge termination charges

-

4,673

-

-

-

-

Tax effect on adjustments noted above (18)

3

(4,297

)

(819

)

(1,539

)

(510

)

(192

)

Net income available to common shareholders excluding adjustments noted above

$

121,620

119,218

109,163

66,791

29,798

96,623

Basic earnings per common share

$

1.61

1.42

1.42

0.83

0.37

1.26

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

-

-

(0.01

)

-

-

-

Adjustment due to ORE expense

-

0.02

0.02

0.04

0.03

0.01

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

$

1.61

1.58

1.45

0.89

0.39

1.27

Diluted earnings per common share

$

1.61

1.42

1.42

0.83

0.37

1.26

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

-

-

(0.01

)

-

-

-

Adjustment due to ORE expense

-

0.02

0.02

0.04

0.03

0.01

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

)

-

Diluted earnings per common share excluding the adjustments noted above

$

1.61

1.58

1.45

0.89

0.39

1.27

Revenue per diluted common share

$

4.17

4.03

3.95

3.63

3.47

3.32

Adjustments as noted above

-

-

(0.01

)

-

-

-

Revenue per diluted common share excluding adjustments noted above

$

4.17

4.03

3.94

3.63

3.47

3.32

Book value per common share at quarter end

$

62.33

61.80

60.26

59.05

57.85

56.89

Adjustment due to goodwill, core deposit and other intangible assets

(24.45

)

(24.55

)

(24.58

)

(24.62

)

(24.65

)

(24.44

)

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

$

37.88

37.25

35.68

34.43

33.20

32.45

Equity method investment (17)

Fee income from BHG, net of amortization

$

28,950

24,294

26,445

17,208

15,592

12,312

Funding cost to support investment

1,205

1,222

1,231

2,134

2,122

2,345

Pre-tax impact of BHG

27,745

23,072

25,214

15,074

13,470

9,967

Income tax expense at statutory rates

7,253

6,031

6,591

3,940

3,521

2,605

Earnings attributable to BHG

$

20,492

17,041

18,623

11,134

9,949

7,362

Basic earnings per common share attributable to BHG

$

0.27

0.23

0.25

0.15

0.13

0.10

Diluted earnings per common share attributable to BHG

$

0.27

0.23

0.25

0.15

0.13

0.10

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 March December September June March Decemberthousands, exceptper share data) 2021 2020 2020 2020 2020 2019

Net income availableto common $ 121,630 107,078 106,847 62,444 28,356 96,079 shareholders

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

ORE expense (13 ) 1,457 1,795 2,888 2,415 804

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

Hedge termination - 4,673 - - - - charges

Tax effect onadjustments noted 3 (4,297 ) (819 ) (1,539 ) (510 ) (192 )above ^(18)

Net income availableto commonshareholders $ 121,620 119,218 109,163 66,791 29,798 96,623 excludingadjustments notedabove



Basic earnings per $ 1.61 1.42 1.42 0.83 0.37 1.26 common share

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

Adjustment due to - 0.02 0.02 0.04 0.03 0.01 ORE expense

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 $ 1.61 1.58 1.45 0.89 0.39 1.27 adjustments notedabove



Diluted earnings per $ 1.61 1.42 1.42 0.83 0.37 1.26 common share

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

Adjustment due to - 0.02 0.02 0.04 0.03 0.01 ORE expense

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)

Diluted earnings percommon shareexcluding the $ 1.61 1.58 1.45 0.89 0.39 1.27 adjustments notedabove



Revenue per diluted $ 4.17 4.03 3.95 3.63 3.47 3.32 common share

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

Revenue per dilutedcommon shareexcluding $ 4.17 4.03 3.94 3.63 3.47 3.32 adjustments notedabove



Book value percommon share at $ 62.33 61.80 60.26 59.05 57.85 56.89 quarter end

Adjustment due togoodwill, core (24.45 ) (24.55 ) (24.58 ) (24.62 ) (24.65 ) (24.44 )deposit and otherintangible assets

Tangible book valueper common share at $ 37.88 37.25 35.68 34.43 33.20 32.45 quarter end ^(9)



Equity method investment ^(17)

Fee income from BHG, $ 28,950 24,294 26,445 17,208 15,592 12,312 net of amortization

Funding cost to 1,205 1,222 1,231 2,134 2,122 2,345 support investment

Pre-tax impact of 27,745 23,072 25,214 15,074 13,470 9,967 BHG

Income tax expense 7,253 6,031 6,591 3,940 3,521 2,605 at statutory rates

Earnings $ 20,492 17,041 18,623 11,134 9,949 7,362 attributable to BHG



Basic earnings percommon share $ 0.27 0.23 0.25 0.15 0.13 0.10 attributable to BHG

Diluted earnings percommon share $ 0.27 0.23 0.25 0.15 0.13 0.10 attributable to BHG



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

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

Three months ended

(dollars in thousands, except per share data)

March

December

March

2021

2020

2020

Return on average assets (1)

1.42

%

1.24

%

0.40

%

Adjustments as noted above

-

%

0.14

%

0.02

%

Return on average assets excluding adjustments noted above (1)

1.42

%

1.38

%

0.42

%

Tangible assets:

Total assets

$

35,299,705

34,932,860

29,264,180

Less: Goodwill

(1,819,811

)

(1,819,811

)

(1,819,811

)

Core deposit and other intangible assets

(40,130

)

(42,336

)

(48,610

)

Net tangible assets

$

33,439,764

33,070,713

27,395,759

Tangible common equity:

Total stockholders' equity

$

4,959,524

4,904,611

4,385,128

Less: Preferred stockholders' equity

(217,126

)

(217,126

)

-

Total common stockholders' equity

4,742,398

4,687,485

4,385,128

Less: Goodwill

(1,819,811

)

(1,819,811

)

(1,819,811

)

Core deposit and other intangible assets

(40,130

)

(42,336

)

(48,610

)

Net tangible common equity

$

2,882,457

2,825,338

2,516,707

Ratio of tangible common equity to tangible assets

8.62

%

8.54

%

9.19

%

Average tangible assets:

Average assets

$

34,659,132

34,436,765

28,237,642

Less: Average goodwill

(1,819,811

)

(1,819,811

)

(1,819,811

)

Average core deposit and other intangible assets

(41,575

)

(43,886

)

(50,252

)

Net average tangible assets

$

32,797,746

32,573,068

26,367,579

Return on average assets (1)

1.42

%

1.24

%

0.40

%

Adjustment due to goodwill, core deposit and other intangible assets

0.08

%

0.07

%

0.03

%

Return on average tangible assets (1)

1.50

%

1.31

%

0.43

%

Adjustments as noted above

-

%

0.15

%

0.02

%

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

1.50

%

1.46

%

0.45

%

Average tangible common equity:

Average stockholders' equity

$

4,953,656

4,852,373

4,417,155

Less: Average preferred equity

(217,126

)

(217,126

)

-

Average common equity

4,736,530

4,635,247

4,417,155

Less: Average goodwill

(1,819,811

)

(1,819,811

)

(1,819,811

)

Average core deposit and other intangible assets

(41,575

)

(43,886

)

(50,252

)

Net average tangible common equity

$

2,875,144

2,771,550

2,547,092

Return on average equity (1)

9.96

%

8.78

%

2.58

%

Adjustment due to average preferred stockholders' equity

0.45

%

0.41

%

-

%

Return on average common equity (1)

10.41

%

9.19

%

2.58

%

Adjustment due to goodwill, core deposit and other intangible assets

6.75

%

6.18

%

1.90

%

Return on average tangible common equity (1)

17.16

%

15.37

%

4.48

%

Adjustments as noted above

-

%

1.74

%

0.23

%

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

17.16

%

17.11

%

4.71

%

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

1.22

%

1.27

%

1.09

%

Impact of excluding PPP loans from total loans

0.13

%

0.11

%

-

%

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

1.35

%

1.38

%

1.09

%

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 thousands, except per March December Marchshare data) 2021 2020 2020



Return on average assets ^(1) 1.42 % 1.24 % 0.40 %

Adjustments as noted above - % 0.14 % 0.02 %

Return on average assets excluding 1.42 % 1.38 % 0.42 %adjustments noted above ^(1)



Tangible assets:

Total assets $ 35,299,705 34,932,860 29,264,180

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

Core deposit and other intangible (40,130 ) (42,336 ) (48,610 )assets

Net tangible assets $ 33,439,764 33,070,713 27,395,759



Tangible common equity:

Total stockholders' equity $ 4,959,524 4,904,611 4,385,128

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

Total common stockholders' equity 4,742,398 4,687,485 4,385,128

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

Core deposit and other intangible (40,130 ) (42,336 ) (48,610 )assets

Net tangible common equity $ 2,882,457 2,825,338 2,516,707



Ratio of tangible common equity to 8.62 % 8.54 % 9.19 %tangible assets



Average tangible assets:

Average assets $ 34,659,132 34,436,765 28,237,642

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

Average core deposit and other (41,575 ) (43,886 ) (50,252 )intangible assets

Net average tangible assets $ 32,797,746 32,573,068 26,367,579



Return on average assets ^(1) 1.42 % 1.24 % 0.40 %

Adjustment due to goodwill, core 0.08 % 0.07 % 0.03 %deposit and other intangible assets

Return on average tangible assets ^(1) 1.50 % 1.31 % 0.43 %

Adjustments as noted above - % 0.15 % 0.02 %

Return on average tangible assets 1.50 % 1.46 % 0.45 %excluding adjustments noted above ^(1)



Average tangible common equity:

Average stockholders' equity $ 4,953,656 4,852,373 4,417,155

Less: Average preferred equity (217,126 ) (217,126 ) -

Average common equity 4,736,530 4,635,247 4,417,155

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

Average core deposit and other (41,575 ) (43,886 ) (50,252 )intangible assets

Net average tangible common equity $ 2,875,144 2,771,550 2,547,092



Return on average equity^ (1) 9.96 % 8.78 % 2.58 %

Adjustment due to average preferred 0.45 % 0.41 % - %stockholders' equity

Return on average common equity ^(1) 10.41 % 9.19 % 2.58 %

Adjustment due to goodwill, core 6.75 % 6.18 % 1.90 %deposit and other intangible assets

Return on average tangible common 17.16 % 15.37 % 4.48 %equity ^(1)

Adjustments as noted above - % 1.74 % 0.23 %

Return on average tangible commonequity excluding adjustments noted 17.16 % 17.11 % 4.71 %above ^(1)



Allowance for credit losses on loans 1.22 % 1.27 % 1.09 %as a percent of total loans

Impact of excluding PPP loans from 0.13 % 0.11 % - %total loans

Allowance as adjusted for the aboveexclusion of PPP loans from total 1.35 % 1.38 % 1.09 %loans



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, 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