Business Wire | Oct 12, 2021 05:02PM EDT

PNFP Reports Diluted EPS of $1.75, ROAA of 1.47% and ROTCE of 16.98% for 3Q2021

Oct. 12, 2021

NASHVILLE, Tenn.--(BUSINESS WIRE)--Oct. 12, 2021--Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported net income per diluted common share of $1.75 for the quarter ended Sept. 30, 2021, compared to net income per diluted common share of $1.42 for the quarter ended Sept. 30, 2020, an increase of approximately 23.2 percent. Excluding ORE expense for the three months ended Sept. 30, 2021 and 2020 and gains and losses on the sale of investment securities and FHLB restructuring charges for the three months ended Sept. 30, 2020, net income per diluted common share was $1.75 for the three months ended Sept. 30, 2021, compared to $1.45 for the three months ended Sept. 30, 2020, a year-over-year increase of 20.7 percent.

Net income per diluted common share was $5.05 for the nine months ended Sept. 30, 2021, compared to net income per diluted common share of $2.62 for the nine months ended Sept. 30, 2020, an increase of nearly 93 percent. Excluding gains and losses on the sale of investment securities and other real estate (ORE) expense for the nine months ended Sept. 30, 2021 and 2020 and FHLB restructuring charges for the nine months ended Sept. 30, 2020, net income per diluted common share was $5.04 in 2021, compared to $2.72 in 2020, a year-over-year increase of 85.3 percent.

"Despite the ongoing uncertain economic climate, we continue to experience strong organic growth," said M. Terry Turner, Pinnacle's president and chief executive officer. "Our business model continued to serve us well during the third quarter. Aggregate loans grew at an annualized rate of 2.8 percent for the quarter, after excluding the impact of PPP forgiveness and paydowns of $664.2 million, other loans increased at an annualized rate of 15.3 percent. We continue to see increased lending opportunities as a result of our now two-decade long focus on hiring the best bankers in our markets.

"We successfully recruited 32 new revenue producers to our firm during the third quarter, and our ongoing recruiting pipelines are as strong as I can remember," Turner said. "We also remain very excited about our new markets, which include Atlanta, Huntsville and Birmingham, as well as our recent hires in the equipment finance and franchise lending segments. We believe our 2021 end-of-year loan balances should exceed 2020 end-of-year balances by 2 to 5 percent, or by 9 to 12 percent excluding PPP loans. Our current belief is that our 2022 loan growth, with our new markets and the strength of our hiring over the last few years, should produce low-double digit growth assuming an economic environment similar to the one we operate in presently."

BALANCE SHEET GROWTH:

* Loans at Sept. 30, 2021 were $23.1 billion, an increase of approximately $581.1 million from Sept. 30, 2020, reflecting year-over-year growth of 2.6 percent. Loans at Sept. 30, 2021 increased approximately $160.5 million from June 30, 2021 reflecting linked-quarter annualized growth of 2.8 percent. Loans at Sept. 30, 2021 include approximately $708.7 million of loans issued pursuant to the Small Business Administration's (SBA's) Paycheck Protection Program (PPP), compared to $2.3 billion at Sept. 30, 2020 and $1.4 billion at June 30, 2021. The average yield on these loans was 8.54 percent for the third quarter of 2021, inclusive of $18.5 million of loan fee accretion recognized during the quarter. At Sept. 30, 2021, $29.2 million in SBA PPP loan fees remained, which should be accreted into net interest income over the next nine months as these loans are repaid and/or are forgiven under the PPP. PPP loans decreased by $664.2 million between June 30, 2021 and Sept. 30, 2021. Excluding PPP loans, total loans increased by $824.7 million during the same period, or 15.3 percent on an annualized basis. Average loans were $23.0 billion for the three months ended Sept. 30, 2021, down $193.0 million from the three months ended June 30, 2021, a linked-quarter annualized reduction of 3.3 percent. Excluding the impact of $983.5 million of average PPP loans outstanding during the three months ended Sept. 30, 2021 and $1.9 billion during the three months ended June 30, 2021, average loans were $22.0 billion for the three months ended Sept. 30, 2021, up $752.9 million from $21.3 billion for the three months ended June 30, 2021, a linked-quarter annualized growth rate of 14.2 percent. At Sept. 30, 2021, the remaining discount associated with fair value accounting adjustments on acquired loans was $17.6 million, compared to $20.6 million at June 30, 2021. * Deposits at Sept. 30, 2021 were $29.4 billion, an increase of $2.8 billion from Sept. 30, 2020, reflecting year-over-year growth of 10.6 percent. Deposits at Sept. 30, 2021 increased $1.2 billion from June 30, 2021, reflecting a linked-quarter annualized growth rate of 16.3 percent. Average deposits were $28.7 billion for the three months ended Sept. 30, 2021, compared to $28.0 billion for the three months ended June 30, 2021, a linked-quarter annualized growth rate of 10.4 percent. Core deposits were $27.2 billion at Sept. 30, 2021, compared to $22.0 billion at Sept. 30, 2020 and $25.9 billion at June 30, 2021. The linked-quarter annualized growth rate of core deposits in the third quarter of 2021 was 20.3 percent.

"During the third quarter, core deposits increased by 23.5 percent over our balances this time last year," Turner said. "We are very pleased that approximately 53 percent of the increase in core deposit balances is attributable to increases in noninterest bearing deposits. Our research indicates these increases come from many different sources, including PPP and quantitative easing as well as our depositors continuing to grow their deposit balances due to the ongoing uncertainties that exist in the economy. Approximately 15 percent of our average deposit growth this year is from new accounts."

REVENUES:

* Revenues for the quarter ended Sept. 30, 2021 were $341.6 million, an increase of $10.2 million from the $331.4 million recognized in the second quarter of 2021, a linked-quarter annualized growth rate of 12.3 percent. Revenues were up $44.0 million from the third quarter of 2020, a year-over-year growth rate of 14.8 percent. Revenue per fully diluted common share was at an all-time record of $4.50 for the three months ended Sept. 30, 2021, compared to $4.37 for the second quarter of 2021 and $3.95 for the third quarter of 2020, a 13.9 percent year-over-year growth rate. * Net interest income for the quarter ended Sept. 30, 2021 was $237.5 million, compared to $233.2 million for the second quarter of 2021 and $206.6 million for the third quarter of 2020, a year-over-year growth rate of 15.0 percent. Net interest margin was 3.03 percent for the third quarter of 2021, compared to 3.08 percent for the second quarter of 2021 and 2.82 percent for the third quarter of 2020. Impacting the firm's net interest margin in the second and third quarters of 2021 and the third quarter of 2020 were both the PPP loans and the firm's decision early in the pandemic to maintain additional on-balance sheet liquidity. The firm estimates its second and third quarter 2021 net interest margin was negatively impacted by approximately 17 basis points as a result of PPP loans and additional liquidity, compared to approximately 40 basis points for the third quarter 2020. Included in net interest income for the third quarter of 2021 was $2.8 million of discount accretion associated with fair value adjustments, compared to $3.3 million of discount accretion recognized in the second quarter of 2021 and $5.6 million in the third quarter of 2020. The firm's net interest margin was positively impacted by approximately 4 basis points, 3 basis points and 9 basis points, respectively, because of fair value adjustment discount accretion in each of the second and third quarters of 2021 and the third quarter of 2020. There remains $10.8 million of purchase accounting discount accretion as of Sept. 30, 2021. * Noninterest income for the quarter ended Sept. 30, 2021 was $104.1 million, compared to $98.2 million for the quarter ended June 30, 2021, a linked-quarter annualized increase of 24.0 percent. Compared to $91.1 million for the third quarter of 2020, noninterest income grew 14.3 percent year-over-year. Service charges on deposit accounts were $11.4 million for the third quarter of 2021, compared to $8.9 million for the second quarter of 2021, a linked-quarter annualized increase of more than 100 percent primarily the result of vendor incentives received in the third quarter of 2021. Compared to $9.9 million for the third quarter of 2020, service charges on deposit accounts were up 16.0 percent. Wealth management revenues, which include investment, trust and insurance services, were $17.3 million for the third quarter of 2021, compared to $16.5 million for the second quarter of 2021, a linked-quarter annualized increase of 19.2 percent. Compared to $13.0 million for the third quarter of 2020, wealth management revenues were up 32.7 percent. Income from the firm's investment in BHG was $30.4 million for the quarter ended Sept. 30, 2021, down from $32.1 million for the quarter ended June 30, 2021 and up from $26.4 million for the quarter ended Sept. 30, 2020. Net gains on mortgage loans sold were $7.8 million during the quarter ended Sept. 30, 2021, up from $6.7 million for the quarter ended June 30, 2021. Net gains on mortgage loans sold were down 59.8 percent from $19.5 million during the quarter ended Sept. 30, 2020. The dramatic year-over-year decline continues to be reflective of the unusual market conditions that existed in 2020. Other noninterest income was $37.2 million for the quarter ended Sept. 30, 2021, compared to $33.7 million for the quarter ended June 30, 2021 and $21.7 million for the quarter ended Sept. 30, 2020, a linked-quarter annualized increase of 41.4 percent and year-over-year growth of 71.7 percent. Contributing to this growth were $8.6 million in income on other equity investments during the three months ended Sept. 30, 2021 compared to income of $7.0 million for the three months ended June 30, 2021 and $460,000 during the three months ended Sept. 30, 2020. Additionally, income from SBA loan sales increased by $2.3 million over the same quarter last year. * Pre-tax, pre-provision net revenues (PPNR) for the quarter ended Sept. 30, 2021 were $172.8 million, an increase of $7.5 million from the $165.3 million recognized in the second quarter of 2021, a linked-quarter annualized growth rate of 18.1 percent. PPNR was up $19.0 million from the third quarter of 2020, a year-over-year growth rate of 12.3 percent. Excluding gains and losses on the sale of investment securities and ORE expense for the three months ended Sept. 30, 2021 and 2020 and FHLB restructuring charges for the three months ended Sept. 30, 2020, PPNR was $172.7 million, an increase of $8.4 million from the $164.3 million recognized in the second quarter of 2021, a linked-quarter annualized growth rate of 20.5 percent. PPNR, as adjusted, was up $15.8 million from the third quarter of 2020, a year-over-year growth rate of 10.0 percent.

"Several factors contributed to the linked-quarter decline in our net interest margin, which was attributable to the increase in on-balance sheet liquidity driven primarily by forgiveness and paydowns of PPP loans during the quarter," Pinnacle's Chief Financial Officer Harold Carpenter said. "Overall loan yields were up slightly at 4.13 percent in the third quarter. Excluding the impact of PPP loan yields, which had an average yield of 8.54 percent, loan yields decreased by 5 basis points in the third quarter of 2021, which offset a 3 basis point decrease in deposit rates.

"Third quarter was a record-breaking fee quarter for our firm. BHG continues to perform and, we believe, create significant franchise value. Mortgage rebounded in the third quarter as our gain on sale revenues increased by 16 percent from the second quarter. Wealth management had another strong quarter primarily due to broader market appreciation as well as the addition of 10 new wealth management advisors since Sept. 30, 2020. Additionally, excluding our investment in BHG, other equity investments had another big quarter, with these investments contributing $8.6 million to third quarter revenues. That was $1.6 million more than the amount recorded in the second quarter, as several of our venture fund investments experienced increased valuations in their underlying portfolios. Collectively, these investments have contributed $19.0 million more in fee income for the first nine months of 2021 compared to the same period last year."

PROFITABILITY:

* Return on average assets was 1.47 percent for the third quarter of 2021, compared to 1.46 percent for the second quarter of 2021 and 1.26 percent for the third quarter of 2020. Third quarter 2021 return on average tangible assets amounted to 1.55 percent, compared to 1.55 percent for the second quarter of 2021 and 1.33 percent for the third quarter of 2020. Excluding the adjustments described above for the three months ended Sept. 30, 2021, June 30, 2021 and Sept. 30, 2020, return on average assets was 1.47 percent for the third quarter of 2021, compared to 1.46 percent for the second quarter of 2021 and 1.28 percent for the third quarter of 2020. Likewise, excluding those same adjustments, the firm's return on average tangible assets was 1.55 percent for the third quarter of 2021, compared to 1.54 percent for the second quarter of 2021 and 1.36 percent for the third quarter of 2020. * Return on average equity for the third quarter of 2021 amounted to 10.18 percent, compared to 10.19 percent for the second quarter of 2021 and 8.92 percent for the third quarter of 2020. Excluding preferred stockholders' equity for each of the three months ended Sept. 30, 2021, June 30, 2021 and Sept. 30, 2020, respectively, return on average common equity for the third quarter of 2021 amounted to 10.62 percent, compared to 10.65 percent for the second quarter of 2021 and 9.35 percent for the third quarter of 2020. Third quarter 2021 return on average tangible common equity amounted to 16.98 percent, compared to 17.32 percent for the second quarter of 2021 and 15.85 percent for the third quarter of 2020. Excluding the adjustments described above for the three months ended Sept. 30, 2021, June 30, 2021 and June 30, 2020, return on average tangible common equity amounted to 16.97 percent for the third quarter of 2021, compared to 17.22 percent for the second quarter of 2021 and 16.19 percent for the third quarter of 2020. * Book value per share was $65.36 at Sept. 30, 2021, compared to $61.80 at the end of 2020, an annualized growth rate of 7.7 percent thus far this year. Since Dec. 31, 2016, book value per share has grown at a compound annual growth rate of 15.2 percent. Tangible book value per share was $40.98 at Sept. 30, 2021, compared to $37.25 at the end of 2020, an annualized growth rate of 13.4 percent thus far this year. Since Dec. 31, 2016, tangible book value per share has grown at a compound annual growth rate of 15.4 percent.

"Maintaining our profitability at high levels and growing tangible book value predictably and consistently remain significant priorities for our firm," Carpenter said. "We continue to look for ways to leverage our excess liquidity into higher earning assets. We are exploring several options that provide a reasonable return while not resulting in excess risk to tangible book value growth."

MAINTAINING A STRONG BALANCE SHEET:

* Net charge-offs were $9.3 million for the quarter ended Sept. 30, 2021, compared to $10.0 million for the quarter ended June 30, 2021 and $13.1 million for the quarter ended Sept. 30, 2020. Annualized net charge-offs as a percentage of average loans for the quarter ended Sept. 30, 2021 were 0.16 percent, compared to 0.17 percent for the quarter ended June 30, 2021 and 0.23 percent for the quarter ended Sept. 30, 2020. * Nonperforming assets were 0.24 percent of total loans and ORE at Sept. 30, 2021, compared to 0.27 percent at June 30, 2021 and 0.40 percent at Sept. 30, 2020. Nonperforming assets were $55.1 million at Sept. 30, 2021, compared to $62.7 million at June 30, 2021 and $90.8 million at Sept. 30, 2020. * The classified asset ratio at Sept. 30, 2021 was 5.6 percent, compared to 6.8 percent at June 30, 2021 and 9.9 percent at Sept. 30, 2020. Classified assets were $196.3 million at Sept. 30, 2021, compared to $233.8 million at June 30, 2021 and $307.8 million at Sept. 30, 2020. * The allowance for credit losses represented 1.17 percent of total loans at Sept. 30, 2021, compared to 1.20 percent at June 30, 2021 and 1.28 percent at Sept. 30, 2020. Excluding PPP loans, the allowance for credit losses as a percentage of total loans was 1.20 percent at Sept. 30, 2021 compared to 1.27 percent at June 30, 2021 and 1.43 percent at Sept. 30, 2020. The ratio of the allowance for credit losses to nonperforming loans at Sept. 30, 2021 was 575.3 percent, compared to 515.5 percent at June 30, 2021 and 404.3 percent at Sept. 30, 2020. Provision for credit losses was $3.4 million in the third quarter of 2021, compared to $2.8 million in the second quarter of 2021 and was $16.8 million in the third quarter of 2020.

"We continue to be very pleased with our credit performance which we believe is the result of the hard work of our relationship managers and credit officers," Carpenter said. "The big three soundness measurements of net charge-offs, nonperformers and classified assets are all down from the previous quarter. Our allowance for credit losses as a percentage of total loans decreased to 1.17 percent at Sept. 30, 2021, which was slightly less than the same ratio at June 30, 2021. We believe the reduction in this ratio will continue for the next several quarters and, hopefully, with continued steady improvement in the economy, through next year."

OPERATING LEVERAGE AND OTHER HIGHLIGHTS:

* The firm's efficiency ratio for the third quarter of 2021 was 49.4 percent, compared to 50.1 percent for the second quarter of 2021 and 48.3 percent in the third quarter of 2020. The ratio of noninterest expenses to average assets was 1.87 percent for the third quarter of 2021, compared to 1.90 percent in the second quarter of 2021 and 1.69 percent in the third quarter of 2020. Excluding the adjustments described above for the three months ended Sept. 30, 2021, June 30, 2021 and Sept. 30, 2020, the efficiency ratio was 49.5 percent for the third quarter of 2021, compared to 50.4 percent for the second quarter of 2021 and 47.2 percent for the third quarter of 2020. Excluding ORE expense for 2021 and 2020 and FHLB restructuring charges for 2020, the ratio of noninterest expense to average assets was 1.87 percent for the third quarter of 2021, compared to 1.91 percent for the second quarter of 2021 and 1.65 percent for the third quarter of 2020. * Noninterest expense for the quarter ended Sept. 30, 2021 was $168.9 million, compared to $166.1 million in the second quarter of 2021 and $143.9 million in the third quarter of 2020, reflecting a year-over-year increase of 17.4 percent. Excluding ORE expense for 2021 and 2020, and FHLB restructuring charges for 2020, noninterest expense for the third quarter of 2021 increased 20.6 percent over the third quarter of 2020 and 1.3 percent over the second quarter of 2021. Salaries and employee benefits were $112.4 million in the third quarter of 2021, compared to $110.8 million in the second quarter of 2021 and $90.1 million in the third quarter of 2020, reflecting a year-over-year increase of 24.8 percent. Incentive costs related to the firm's annual cash incentive plan amounted to approximately $23.4 million in the third quarter of 2021, compared to $25.5 million in the second quarter of 2021 and $15.2 million in the third quarter of 2020. Incentive costs related to the Company's equity compensation plans amounted to approximately $6.8 million in the third quarter of 2021 compared to $5.7 million in second quarter of 2021 and $4.4 million in the third quarter of 2020. Noninterest expense categories, other than salaries and employee benefits, were $56.4 million in the third quarter of 2021, compared to $55.3 million in the second quarter of 2021 and $53.7 million in the third quarter of 2020, reflecting a year-over-year increase of 5.0 percent. * The effective tax rate for the third quarter of 2021 was 19.4 percent, compared to 18.9 percent for the second quarter of 2021 and 19.3 percent for the third quarter of 2020.

"As anticipated, expenses were essentially flat when compared to the second quarter of 2021," Carpenter said. "We continue to accrue our annual cash incentives at the maximum award level and increased our equity incentive accruals to an estimated above-target award. We believe total expenses for the fourth quarter of 2021 should be flat to down from the amounts reported in the second and third quarters of 2021. Looking to 2022, we believe our expense growth should range between 8 to 11 percent in comparison to 2021."

BOARD OF DIRECTORS DECLARES DIVIDENDS

On Oct. 12, 2021, Pinnacle Financial's Board of Directors approved a quarterly cash dividend of $0.18 per common share to be paid on Nov. 26, 2021 to common shareholders of record as of the close of business on Nov. 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 Dec. 1, 2021 to shareholders of record at the close of business on Nov. 16, 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.

WEBCAST AND CONFERENCE CALL INFORMATION

Pinnacle will host a webcast and conference call at 8:30 a.m. CT on Oct. 13, 2021, to discuss third 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 2021 deposit data from the FDIC. Pinnacle earned a spot on the 2021 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 eight years in a row and No. 1 among banks with more than $10 billion in assets in 2020.

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 $36.5 billion in assets as of Sept. 30, 2021. As the second-largest bank holding company headquartered in Tennessee, Pinnacle operates in 14 primarily urban markets across the Southeast.

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 new outbreaks of COVID-19, including actions taken by governmental officials to curb the spread of the virus, and the resulting 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) further public acceptance of the vaccines that were developed against the virus as well as the decisions of governmental agencies with respect to vaccines including recommendations related to booster shots and requirements that seek to mandate that individuals receive or employers require that their employees receive the vaccine; (iv) those vaccines' efficacy against the virus, including new variants; (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, Alabama 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 (triggering a similar sale by Pinnacle Financial and Pinnacle Bank) 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; (xxix) 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 for the year ended December 31, 2020, and subsequently filed 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, PPNR, 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 September 30, December 31, September 30,share and per share data) 2021 2020 2020

ASSETS

Cash and noninterest-bearing due $ 155,965 $ 203,296 $ 179,231 from banks

Restricted cash 104,157 223,788 247,761

Interest-bearing due from banks 3,206,383 3,522,224 2,604,646

Federal funds sold and other - 12,141 11,687

Cash and cash equivalents 3,466,505 3,961,449 3,043,325

Securities purchased with 500,000 - - agreement to resell

Securities available-for-sale, at 4,634,653 3,586,681 3,463,422 fair value

Securities held-to-maturity (fairvalue of $1.0 billion, $1.1billion and $1.1 billion, net ofallowance for credit losses of 989,237 1,028,359 1,039,650 $161,000, $191,000 and $191,000 atSept. 30, 2021, Dec. 31, 2020 andSept. 30, 2020, respectively)

Consumer loans held-for-sale 55,273 87,821 82,748

Commercial loans held-for-sale 49,121 31,200 12,290

Loans 23,058,461 22,424,501 22,477,409

Less allowance for credit losses (268,635) (285,050) (288,645)

Loans, net 22,789,826 22,139,451 22,188,764

Premises and equipment, net 288,833 290,001 287,711

Equity method investment 333,764 308,556 289,301

Accrued interest receivable 89,137 104,078 101,762

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

Core deposits and other intangible 35,876 42,336 44,713 assets

Other real estate owned 8,415 12,360 19,445

Other assets 1,463,485 1,520,757 1,431,989

Total assets $ 36,523,936 $ 34,932,860 $ 33,824,931

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits:

Noninterest-bearing $ 9,809,691 $ 7,392,325 $ 7,050,670

Interest-bearing 5,767,286 5,689,095 4,995,769

Savings and money market accounts 11,381,033 11,099,523 10,513,645

Time 2,411,797 3,524,632 3,983,872

Total deposits 29,369,807 27,705,575 26,543,956

Securities sold under agreements 148,240 128,164 127,059 to repurchase

Federal Home Loan Bank advances 888,493 1,087,927 1,287,738

Subordinated debt and other 542,712 670,575 670,273 borrowings

Accrued interest payable 11,838 24,934 26,101

Other liabilities 371,048 411,074 382,496

Total liabilities 31,332,138 30,028,249 29,037,623

Preferred stock, no par value,10.0 million shares authorized;225,000 shares non-cumulativeperpetual preferred stock, Series 217,126 217,126 217,126 B, liquidation preference $225.0million, issued and outstanding atSept. 30, 2021, Dec. 31, 2020 andSept. 30, 2020, respectively

Common stock, par value $1.00;180.0 million shares authorized;76.1 million, 75.9 million and75.8 million shares issued and 76,115 75,850 75,835 outstanding at Sept. 30, 2021,Dec. 31, 2020 and Sept. 30, 2020,respectively

Additional paid-in capital 3,038,800 3,028,063 3,023,430

Retained earnings 1,748,491 1,407,723 1,312,929

Accumulated other comprehensive 111,266 175,849 157,988 income, net of taxes

Total stockholders' equity 5,191,798 4,904,611 4,787,308

Total liabilities and $ 36,523,936 $ 34,932,860 $ 33,824,931 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 share and per share data)

Three months ended

Nine months ended

September 30, 2021

June 30, 2021

September 30, 2020

September 30, 2021

September 30, 2020

Interest income:

Loans, including fees

$

233,857

$

232,788

$

224,482

$

694,017

$

687,183

Securities

Taxable

8,986

8,359

8,276

25,073

28,133

Tax-exempt

15,873

16,546

15,001

47,917

43,421

Federal funds sold and other

2,152

1,543

1,429

5,014

5,258

Total interest income

260,868

259,236

249,188

772,021

763,995

Interest expense:

Deposits

12,139

13,861

28,401

43,468

112,826

Securities sold under agreements to repurchase

57

56

77

185

286

FHLB advances and other borrowings

11,129

12,094

14,116

34,730

50,080

Total interest expense

23,325

26,011

42,594

78,383

163,192

Net interest income

237,543

233,225

206,594

693,638

600,803

Provision for credit losses

3,382

2,834

16,758

13,451

194,635

Net interest income after provision for credit losses

234,161

230,391

189,836

680,187

406,168

Noninterest income:

Service charges on deposit accounts

11,435

8,906

9,854

28,648

25,796

Investment services

9,648

8,997

6,734

26,836

21,944

Insurance sales commissions

2,557

2,406

2,284

8,188

7,755

Gains on mortgage loans sold, net

7,814

6,700

19,453

28,180

47,655

Investment gains on sales, net

-

366

651

366

986

Trust fees

5,049

5,062

3,986

14,798

12,114

Income from equity method investment

30,409

32,071

26,445

91,430

59,245

Other noninterest income

37,183

33,699

21,658

96,565

58,901

Total noninterest income

104,095

98,207

91,065

295,011

234,396

Noninterest expense:

Salaries and employee benefits

112,406

110,824

90,103

325,958

244,470

Equipment and occupancy

23,712

23,321

21,622

70,253

64,626

Other real estate, net

(79

)

(657

)

1,795

(749

)

7,098

Marketing and other business development

3,325

2,652

2,321

8,326

7,714

Postage and supplies

2,083

2,115

1,761

6,004

5,821

Amortization of intangibles

2,088

2,167

2,417

6,461

7,416

Other noninterest expense

25,316

25,718

23,833

73,434

66,005

Total noninterest expense

168,851

166,140

143,852

489,687

403,150

Income before income taxes

169,405

162,458

137,049

485,511

237,414

Income tax expense

32,828

30,668

26,404

91,716

35,969

Net income

136,577

131,790

110,645

393,795

201,445

Preferred stock dividends

(3,798

)

(3,798

)

(3,798

)

(11,394

)

(3,798

)

Net income available to common shareholders

$

132,779

$

127,992

$

106,847

$

382,401

$

197,647

Per share information:

Basic net income per common share

$

1.76

$

1.70

$

1.42

$

5.07

$

2.62

Diluted net income per common share

$

1.75

$

1.69

$

1.42

$

5.05

$

2.62

Weighted average common shares outstanding:

Basic

75,494,286

75,481,198

75,240,664

75,449,900

75,417,663

Diluted

75,836,142

75,809,974

75,360,033

75,760,618

75,544,677

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

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(dollars inthousands,except for Three months ended Nine months endedshare and pershare data)

September June 30, September September September 30, 2021 30, 30, 30, 2021 2020 2021 2020

Interest income:

Loans, $ 233,857 $ 232,788 $ 224,482 $ 694,017 $ 687,183 including fees

Securities

Taxable 8,986 8,359 8,276 25,073 28,133

Tax-exempt 15,873 16,546 15,001 47,917 43,421

Federal funds 2,152 1,543 1,429 5,014 5,258 sold and other

Total interest 260,868 259,236 249,188 772,021 763,995 income

Interest expense:

Deposits 12,139 13,861 28,401 43,468 112,826

Securitiessold under 57 56 77 185 286 agreements torepurchase

FHLB advancesand other 11,129 12,094 14,116 34,730 50,080 borrowings

Total interest 23,325 26,011 42,594 78,383 163,192 expense

Net interest 237,543 233,225 206,594 693,638 600,803 income

Provision for 3,382 2,834 16,758 13,451 194,635 credit losses

Net interestincome after 234,161 230,391 189,836 680,187 406,168 provision forcredit losses

Noninterest income:

Servicecharges on 11,435 8,906 9,854 28,648 25,796 depositaccounts

Investment 9,648 8,997 6,734 26,836 21,944 services

Insurancesales 2,557 2,406 2,284 8,188 7,755 commissions

Gains onmortgage loans 7,814 6,700 19,453 28,180 47,655 sold, net

Investmentgains on - 366 651 366 986 sales, net

Trust fees 5,049 5,062 3,986 14,798 12,114

Income fromequity method 30,409 32,071 26,445 91,430 59,245 investment

Othernoninterest 37,183 33,699 21,658 96,565 58,901 income

Totalnoninterest 104,095 98,207 91,065 295,011 234,396 income

Noninterest expense:

Salaries andemployee 112,406 110,824 90,103 325,958 244,470 benefits

Equipment and 23,712 23,321 21,622 70,253 64,626 occupancy

Other real (79 ) (657 ) 1,795 (749 ) 7,098 estate, net

Marketing andother business 3,325 2,652 2,321 8,326 7,714 development

Postage and 2,083 2,115 1,761 6,004 5,821 supplies

Amortization 2,088 2,167 2,417 6,461 7,416 of intangibles

Othernoninterest 25,316 25,718 23,833 73,434 66,005 expense

Totalnoninterest 168,851 166,140 143,852 489,687 403,150 expense

Income before 169,405 162,458 137,049 485,511 237,414 income taxes

Income tax 32,828 30,668 26,404 91,716 35,969 expense

Net income 136,577 131,790 110,645 393,795 201,445

Preferredstock (3,798 ) (3,798 ) (3,798 ) (11,394 ) (3,798 )dividends

Net incomeavailable to $ 132,779 $ 127,992 $ 106,847 $ 382,401 $ 197,647 commonshareholders

Per share information:

Basic netincome per $ 1.76 $ 1.70 $ 1.42 $ 5.07 $ 2.62 common share

Diluted netincome per $ 1.75 $ 1.69 $ 1.42 $ 5.05 $ 2.62 common share

Weightedaverage common sharesoutstanding:

Basic 75,494,286 75,481,198 75,240,664 75,449,900 75,417,663

Diluted 75,836,142 75,809,974 75,360,033 75,760,618 75,544,677

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

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

(dollars in thousands)

September

June

March

December

September

June

2021

2021

2021

2020

2020

2020

Balance sheet data, at quarter end:

Commercial and industrial loans

$

7,079,431

6,771,254

6,355,119

6,239,588

6,144,949

6,293,709

Commercial real estate - owner occupied loans

2,954,519

2,817,689

2,869,785

2,802,227

2,748,075

2,708,306

Commercial real estate - investment loans

4,597,736

4,644,551

4,782,712

4,565,040

4,648,457

4,822,537

Commercial real estate - multifamily and other loans

621,471

724,253

790,469

638,344

571,995

561,481

Consumer real estate - mortgage loans

3,540,439

3,335,537

3,086,916

3,099,172

3,041,019

3,042,604

Construction and land development loans

3,096,961

2,791,611

2,568,969

2,901,746

2,728,439

2,574,494

Consumer and other loans

459,182

440,124

411,322

379,515

343,461

294,545

Paycheck protection program loans

708,722

1,372,916

2,221,409

1,798,869

2,251,014

2,222,624

Total loans

23,058,461

22,897,935

23,086,701

22,424,501

22,477,409

22,520,300

Allowance for credit losses

(268,635

)

(273,747

)

(280,881

)

(285,050

)

(288,645

)

(285,372

)

Securities

5,623,890

5,326,908

4,691,364

4,615,040

4,503,072

4,358,313

Total assets

36,523,936

35,412,309

35,299,705

34,932,860

33,824,931

33,342,112

Noninterest-bearing deposits

9,809,691

8,926,200

8,103,943

7,392,325

7,050,670

6,892,864

Total deposits

29,369,807

28,217,603

28,292,940

27,705,575

26,543,956

25,521,829

Securities sold under agreements to repurchase

148,240

177,661

172,117

128,164

127,059

194,553

FHLB advances

888,493

888,304

888,115

1,087,927

1,287,738

1,787,551

Subordinated debt and other borrowings

542,712

671,994

671,002

670,575

670,273

717,043

Total stockholders' equity

5,191,798

5,101,231

4,959,524

4,904,611

4,787,308

4,695,647

Balance sheet data, quarterly averages:

Total loans

$

22,986,835

23,179,803

22,848,086

22,524,683

22,493,192

22,257,168

Securities

5,451,232

5,036,786

4,666,269

4,567,872

4,420,280

4,194,811

Federal funds sold and other

3,743,074

3,143,078

3,356,199

3,621,623

3,279,248

2,618,832

Total earning assets

32,181,141

31,359,667

30,870,554

30,714,178

30,192,720

29,070,811

Total assets

35,896,130

35,053,772

34,659,132

34,436,765

33,838,716

32,785,391

Noninterest-bearing deposits

9,247,382

8,500,465

7,620,665

7,322,393

6,989,439

6,432,010

Total deposits

28,739,871

28,013,659

27,620,784

27,193,256

26,352,823

24,807,032

Securities sold under agreements to repurchase

164,837

173,268

143,586

121,331

147,211

191,084

FHLB advances

888,369

888,184

934,662

1,250,848

1,515,879

2,213,769

Subordinated debt and other borrowings

586,387

674,162

673,662

673,419

715,138

706,657

Total stockholders' equity

5,176,625

5,039,608

4,953,656

4,852,373

4,765,864

4,499,438

Statement of operations data, for the three months ended:

Interest income

$

260,868

259,236

251,917

257,047

249,188

251,738

Interest expense

23,325

26,011

29,047

36,062

42,594

51,081

Net interest income

237,543

233,225

222,870

220,985

206,594

200,657

Provision for credit losses

3,382

2,834

7,235

9,180

16,758

72,832

Net interest income after provision for credit losses

234,161

230,391

215,635

211,805

189,836

127,825

Noninterest income

104,095

98,207

92,709

83,444

91,065

72,954

Noninterest expense

168,851

166,140

154,696

161,305

143,852

127,105

Income before taxes

169,405

162,458

153,648

133,944

137,049

73,674

Income tax expense

32,828

30,668

28,220

23,068

26,404

11,230

Net income

136,577

131,790

125,428

110,876

110,645

62,444

Preferred stock dividends

(3,798

)

(3,798

)

(3,798

)

(3,798

)

(3,798

)

-

Net income available to common shareholders

$

132,779

127,992

121,630

107,078

106,847

62,444

Profitability and other ratios:

Return on avg. assets (1)

1.47

%

1.46

%

1.42

%

1.24

%

1.26

%

0.77

%

Return on avg. equity (1)

10.18

%

10.19

%

9.96

%

8.78

%

8.92

%

5.58

%

Return on avg. common equity (1)

10.62

%

10.65

%

10.41

%

9.19

%

9.35

%

5.66

%

Return on avg. tangible common equity (1)

16.98

%

17.32

%

17.16

%

15.37

%

15.85

%

9.77

%

Common stock dividend payout ratio (16)

11.13

%

11.73

%

13.69

%

15.84

%

16.49

%

16.41

%

Net interest margin (2)

3.03

%

3.08

%

3.02

%

2.97

%

2.82

%

2.87

%

Noninterest income to total revenue (3)

30.47

%

29.63

%

29.38

%

27.41

%

30.59

%

26.66

%

Noninterest income to avg. assets (1)

1.15

%

1.12

%

1.08

%

0.96

%

1.07

%

0.89

%

Noninterest exp. to avg. assets (1)

1.87

%

1.90

%

1.81

%

1.86

%

1.69

%

1.56

%

Efficiency ratio (4)

49.42

%

50.13

%

49.02

%

52.99

%

48.33

%

46.45

%

Avg. loans to avg. deposits

79.98

%

82.74

%

82.72

%

82.83

%

85.35

%

89.72

%

Securities to total assets

15.40

%

15.04

%

13.29

%

13.21

%

13.31

%

13.07

%

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

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED



(dollars in September June March December September Junethousands) 2021 2021 2021 2020 2020 2020

Balance sheet data, at quarter end:

Commercial and $ 7,079,431 6,771,254 6,355,119 6,239,588 6,144,949 6,293,709 industrial loans

Commercial realestate - owner 2,954,519 2,817,689 2,869,785 2,802,227 2,748,075 2,708,306 occupied loans

Commercial realestate - investment 4,597,736 4,644,551 4,782,712 4,565,040 4,648,457 4,822,537 loans

Commercial realestate - 621,471 724,253 790,469 638,344 571,995 561,481 multifamily andother loans

Consumer realestate - mortgage 3,540,439 3,335,537 3,086,916 3,099,172 3,041,019 3,042,604 loans

Construction andland development 3,096,961 2,791,611 2,568,969 2,901,746 2,728,439 2,574,494 loans

Consumer and other 459,182 440,124 411,322 379,515 343,461 294,545 loans

Paycheck protection 708,722 1,372,916 2,221,409 1,798,869 2,251,014 2,222,624 program loans

Total loans 23,058,461 22,897,935 23,086,701 22,424,501 22,477,409 22,520,300

Allowance for (268,635 ) (273,747 ) (280,881 ) (285,050 ) (288,645 ) (285,372 )credit losses

Securities 5,623,890 5,326,908 4,691,364 4,615,040 4,503,072 4,358,313

Total assets 36,523,936 35,412,309 35,299,705 34,932,860 33,824,931 33,342,112

Noninterest-bearing 9,809,691 8,926,200 8,103,943 7,392,325 7,050,670 6,892,864 deposits

Total deposits 29,369,807 28,217,603 28,292,940 27,705,575 26,543,956 25,521,829

Securities soldunder agreements to 148,240 177,661 172,117 128,164 127,059 194,553 repurchase

FHLB advances 888,493 888,304 888,115 1,087,927 1,287,738 1,787,551

Subordinated debtand other 542,712 671,994 671,002 670,575 670,273 717,043 borrowings

Total stockholders' 5,191,798 5,101,231 4,959,524 4,904,611 4,787,308 4,695,647 equity

Balance sheet data, quarterly averages:

Total loans $ 22,986,835 23,179,803 22,848,086 22,524,683 22,493,192 22,257,168

Securities 5,451,232 5,036,786 4,666,269 4,567,872 4,420,280 4,194,811

Federal funds sold 3,743,074 3,143,078 3,356,199 3,621,623 3,279,248 2,618,832 and other

Total earning 32,181,141 31,359,667 30,870,554 30,714,178 30,192,720 29,070,811 assets

Total assets 35,896,130 35,053,772 34,659,132 34,436,765 33,838,716 32,785,391

Noninterest-bearing 9,247,382 8,500,465 7,620,665 7,322,393 6,989,439 6,432,010 deposits

Total deposits 28,739,871 28,013,659 27,620,784 27,193,256 26,352,823 24,807,032

Securities soldunder agreements to 164,837 173,268 143,586 121,331 147,211 191,084 repurchase

FHLB advances 888,369 888,184 934,662 1,250,848 1,515,879 2,213,769

Subordinated debtand other 586,387 674,162 673,662 673,419 715,138 706,657 borrowings

Total stockholders' 5,176,625 5,039,608 4,953,656 4,852,373 4,765,864 4,499,438 equity

Statement of operations data, for the three months ended:

Interest income $ 260,868 259,236 251,917 257,047 249,188 251,738

Interest expense 23,325 26,011 29,047 36,062 42,594 51,081

Net interest income 237,543 233,225 222,870 220,985 206,594 200,657

Provision for 3,382 2,834 7,235 9,180 16,758 72,832 credit losses

Net interest incomeafter provision for 234,161 230,391 215,635 211,805 189,836 127,825 credit losses

Noninterest income 104,095 98,207 92,709 83,444 91,065 72,954

Noninterest expense 168,851 166,140 154,696 161,305 143,852 127,105

Income before taxes 169,405 162,458 153,648 133,944 137,049 73,674

Income tax expense 32,828 30,668 28,220 23,068 26,404 11,230

Net income 136,577 131,790 125,428 110,876 110,645 62,444

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

Net incomeavailable to common $ 132,779 127,992 121,630 107,078 106,847 62,444 shareholders

Profitability and other ratios:

Return on avg. 1.47 % 1.46 % 1.42 % 1.24 % 1.26 % 0.77 %assets ^(1)

Return on avg. 10.18 % 10.19 % 9.96 % 8.78 % 8.92 % 5.58 %equity ^(1)

Return on avg. 10.62 % 10.65 % 10.41 % 9.19 % 9.35 % 5.66 %common equity^ (1)

Return on avg.tangible common 16.98 % 17.32 % 17.16 % 15.37 % 15.85 % 9.77 %equity ^(1)

Common stockdividend payout 11.13 % 11.73 % 13.69 % 15.84 % 16.49 % 16.41 %ratio ^(16)

Net interest margin 3.03 % 3.08 % 3.02 % 2.97 % 2.82 % 2.87 %^ (2)

Noninterest incometo total revenue ^ 30.47 % 29.63 % 29.38 % 27.41 % 30.59 % 26.66 %(3)

Noninterest income 1.15 % 1.12 % 1.08 % 0.96 % 1.07 % 0.89 %to avg. assets ^(1)

Noninterest exp. to 1.87 % 1.90 % 1.81 % 1.86 % 1.69 % 1.56 %avg. assets ^(1)

Efficiency ratio ^ 49.42 % 50.13 % 49.02 % 52.99 % 48.33 % 46.45 %(4)

Avg. loans to avg. 79.98 % 82.74 % 82.72 % 82.83 % 85.35 % 89.72 %deposits

Securities to total 15.40 % 15.04 % 13.29 % 13.21 % 13.31 % 13.07 %assets

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

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

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

(dollars in thousands)

Three months ended

Three months ended

September 30, 2021

September 30, 2020

Average Balances

Interest

Rates/ Yields

Average Balances

Interest

Rates/ Yields

Interest-earning assets

Loans (1) (2)

$

22,986,835

$

233,857

4.13

%

$

22,493,192

$

224,482

4.04

%

Securities

Taxable

2,868,212

8,986

1.24

%

2,226,008

8,276

1.48

%

Tax-exempt (2)

2,583,020

15,873

2.93

%

2,194,272

15,001

3.29

%

Federal funds sold and other

3,743,074

2,152

0.23

%

3,279,248

1,429

0.17

%

Total interest-earning assets

32,181,141

$

260,868

3.32

%

30,192,720

$

249,188

3.38

%

Nonearning assets

Intangible assets

1,857,039

1,866,082

Other nonearning assets

1,857,950

1,779,914

Total assets

$

35,896,130

$

33,838,716

Interest-bearing liabilities

Interest-bearing deposits:

Interest checking

5,591,119

2,453

0.17

%

4,784,627

3,733

0.31

%

Savings and money market

11,359,595

5,300

0.19

%

10,312,876

8,374

0.32

%

Time

2,541,775

4,386

0.68

%

4,265,881

16,294

1.52

%

Total interest-bearing deposits

19,492,489

12,139

0.25

%

19,363,384

28,401

0.58

%

Securities sold under agreements to repurchase

164,837

57

0.14

%

147,211

77

0.21

%

Federal Home Loan Bank advances

888,369

4,558

2.04

%

1,515,879

6,945

1.82

%

Subordinated debt and other borrowings

586,387

6,571

4.45

%

715,138

7,171

3.99

%

Total interest-bearing liabilities

21,132,082

23,325

0.44

%

21,741,612

42,594

0.78

%

Noninterest-bearing deposits

9,247,382

-

-

6,989,439

-

-

Total deposits and interest-bearing liabilities

30,379,464

$

23,325

0.30

%

28,731,051

$

42,594

0.59

%

Other liabilities

340,041

341,801

Stockholders' equity

5,176,625

4,765,864

Total liabilities and stockholders' equity

$

35,896,130

$

33,838,716

Netinterestincome

$

237,543

$

206,594

Net interest spread (3)

2.88

%

2.60

%

Net interest margin (4)

3.03

%

2.82

%

(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 $8.5 million of taxable equivalent income for the three months ended Sept. 30, 2021 compared to $7.3 million for the three months ended Sept. 30, 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 Sept. 30, 2021 would have been 3.02% compared to a net interest spread of 2.79% for the three months ended Sept. 30, 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) September 30, 2021 September 30, 2020

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

Interest-earning assets

Loans^ (1) (2) $ 22,986,835 $ 233,857 4.13 % $ 22,493,192 $ 224,482 4.04 %

Securities

Taxable 2,868,212 8,986 1.24 % 2,226,008 8,276 1.48 %

Tax-exempt ^(2) 2,583,020 15,873 2.93 % 2,194,272 15,001 3.29 %

Federal funds sold 3,743,074 2,152 0.23 % 3,279,248 1,429 0.17 %and other

Totalinterest-earning 32,181,141 $ 260,868 3.32 % 30,192,720 $ 249,188 3.38 %assets

Nonearning assets

Intangible assets 1,857,039 1,866,082

Other nonearning 1,857,950 1,779,914 assets

Total assets $ 35,896,130 $ 33,838,716



Interest-bearing liabilities

Interest-bearing deposits:

Interest checking 5,591,119 2,453 0.17 % 4,784,627 3,733 0.31 %

Savings and money 11,359,595 5,300 0.19 % 10,312,876 8,374 0.32 %market

Time 2,541,775 4,386 0.68 % 4,265,881 16,294 1.52 %

Totalinterest-bearing 19,492,489 12,139 0.25 % 19,363,384 28,401 0.58 %deposits

Securities soldunder agreements to 164,837 57 0.14 % 147,211 77 0.21 %repurchase

Federal Home Loan 888,369 4,558 2.04 % 1,515,879 6,945 1.82 %Bank advances

Subordinated debtand other 586,387 6,571 4.45 % 715,138 7,171 3.99 %borrowings

Totalinterest-bearing 21,132,082 23,325 0.44 % 21,741,612 42,594 0.78 %liabilities

Noninterest-bearing 9,247,382 - - 6,989,439 - - deposits

Total deposits andinterest-bearing 30,379,464 $ 23,325 0.30 % 28,731,051 $ 42,594 0.59 %liabilities

Other liabilities 340,041 341,801

Stockholders' 5,176,625 4,765,864 equity

Total liabilitiesand stockholders' $ 35,896,130 $ 33,838,716 equity

Net interest income $ 237,543 $ 206,594

Net interest spread 2.88 % 2.60 %^(3)

Net interest margin 3.03 % 2.82 %^(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 $8.5 million of taxable equivalent income for the three months endedSept. 30, 2021 compared to $7.3 million for the three months ended Sept. 30,2020. 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 Sept. 30, 2021 would have been3.02% compared to a net interest spread of 2.79% for the three months endedSept. 30, 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 time of the presentation.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

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

(dollars in thousands)

Nine months ended

Nine months ended

September 30, 2021

September 30, 2020

Average Balances

Interest

Rates/ Yields

Average Balances

Interest

Rates/ Yields

Interest-earning assets

Loans (1) (2)

$

23,005,416

$

694,017

4.11

%

$

21,589,858

$

687,183

4.33

%

Securities

Taxable

2,575,720

25,073

1.30

%

2,103,023

28,133

1.79

%

Tax-exempt (2)

2,478,584

47,917

3.11

%

2,041,199

43,421

3.41

%

Federal funds sold and other

3,415,534

5,014

0.20

%

2,239,102

5,258

0.31

%

Total interest-earning assets

31,475,254

$

772,021

3.38

%

27,973,182

$

763,995

3.75

%

Nonearning assets

Intangible assets

1,859,183

1,868,118

Other nonearning assets

1,873,106

1,787,377

Total assets

$

35,207,543

$

31,628,677

Interest-bearing liabilities

Interest-bearing deposits:

Interest checking

5,504,133

7,460

0.18

%

4,391,319

16,456

0.50

%

Savings and money market

11,323,160

17,670

0.21

%

9,201,302

37,713

0.55

%

Time

2,839,449

18,338

0.86

%

4,298,814

58,657

1.82

%

Total interest-bearing deposits

19,666,742

43,468

0.30

%

17,891,435

112,826

0.84

%

Securities sold under agreements to repurchase

160,641

185

0.15

%

159,783

286

0.24

%

Federal Home Loan Bank advances

903,569

13,553

2.01

%

1,918,371

26,854

1.87

%

Subordinated debt and other borrowings

644,417

21,177

4.39

%

698,464

23,226

4.44

%

Total interest-bearing liabilities

21,375,369

78,383

0.49

%

20,668,053

163,192

1.05

%

Noninterest-bearing deposits

8,462,129

-

-

6,063,783

-

-

Total deposits and interest-bearing liabilities

29,837,498

$

78,383

0.35

%

26,731,836

$

163,192

0.82

%

Other liabilities

312,598

335,274

Stockholders' equity

5,057,447

4,561,567

Total liabilities and stockholders' equity

$

35,207,543

$

31,628,677

Netinterestincome

$

693,638

$

600,803

Net interest spread (3)

2.89

%

2.70

%

Net interest margin (4)

3.05

%

2.97

%

(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 $23.7 million of taxable equivalent income for the nine months ended Sept. 30, 2021 compared to $21.3 million for the nine months ended Sept. 30, 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 nine months ended Sept. 30, 2021 would have been 3.03% compared to a net interest spread of 2.93% for the nine months ended Sept. 30, 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 Nine months ended Nine months endedthousands) September 30, 2021 September 30, 2020

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

Interest-earning assets

Loans^ (1) (2) $ 23,005,416 $ 694,017 4.11 % $ 21,589,858 $ 687,183 4.33 %

Securities

Taxable 2,575,720 25,073 1.30 % 2,103,023 28,133 1.79 %

Tax-exempt ^(2) 2,478,584 47,917 3.11 % 2,041,199 43,421 3.41 %

Federal funds sold 3,415,534 5,014 0.20 % 2,239,102 5,258 0.31 %and other

Totalinterest-earning 31,475,254 $ 772,021 3.38 % 27,973,182 $ 763,995 3.75 %assets

Nonearning assets

Intangible assets 1,859,183 1,868,118

Other nonearning 1,873,106 1,787,377 assets

Total assets $ 35,207,543 $ 31,628,677



Interest-bearing liabilities

Interest-bearing deposits:

Interest checking 5,504,133 7,460 0.18 % 4,391,319 16,456 0.50 %

Savings and money 11,323,160 17,670 0.21 % 9,201,302 37,713 0.55 %market

Time 2,839,449 18,338 0.86 % 4,298,814 58,657 1.82 %

Totalinterest-bearing 19,666,742 43,468 0.30 % 17,891,435 112,826 0.84 %deposits

Securities soldunder agreements to 160,641 185 0.15 % 159,783 286 0.24 %repurchase

Federal Home Loan 903,569 13,553 2.01 % 1,918,371 26,854 1.87 %Bank advances

Subordinated debtand other 644,417 21,177 4.39 % 698,464 23,226 4.44 %borrowings

Totalinterest-bearing 21,375,369 78,383 0.49 % 20,668,053 163,192 1.05 %liabilities

Noninterest-bearing 8,462,129 - - 6,063,783 - - deposits

Total deposits andinterest-bearing 29,837,498 $ 78,383 0.35 % 26,731,836 $ 163,192 0.82 %liabilities

Other liabilities 312,598 335,274

Stockholders' 5,057,447 4,561,567 equity

Total liabilitiesand stockholders' $ 35,207,543 $ 31,628,677 equity

Net interest income $ 693,638 $ 600,803

Net interest spread 2.89 % 2.70 %^(3)

Net interest margin 3.05 % 2.97 %^(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 $23.7 million of taxable equivalent income for the nine months endedSept. 30, 2021 compared to $21.3 million for the nine months ended Sept. 30,2020. 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 nine months ended Sept. 30, 2021 would have been3.03% compared to a net interest spread of 2.93% for the nine months endedSept. 30, 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)

September

June

March

December

September

June

2021

2021

2021

2020

2020

2020

Asset quality information and ratios:

Nonperforming assets:

Nonaccrual loans

$

46,692

53,105

72,135

73,836

71,390

62,562

ORE and other nonperforming assets (NPAs)

8,415

9,602

10,651

12,360

19,445

22,105

Total nonperforming assets

$

55,107

62,707

82,786

86,196

90,835

84,667

Past due loans over 90 days and still accruing interest

$

1,914

1,810

2,833

2,362

1,313

1,982

Accruing troubled debt restructurings (5)

$

2,397

2,428

2,460

2,494

2,588

3,274

Accruing purchase credit deteriorated loans

$

12,158

12,400

13,904

14,091

14,346

14,616

Net loan charge-offs

$

9,281

9,968

11,397

10,775

13,057

5,384

Allowance for credit losses to nonaccrual loans

575.3

%

515.5

%

389.4

%

386.1

%

404.3

%

456.1

%

As a percentage of total loans:

Past due accruing loans over 30 days

0.09

%

0.07

%

0.09

%

0.19

%

0.11

%

0.09

%

Potential problem loans (6)

0.60

%

0.74

%

0.70

%

0.77

%

0.96

%

1.12

%

Allowance for credit losses (20)

1.17

%

1.20

%

1.22

%

1.27

%

1.28

%

1.27

%

Nonperforming assets to total loans, ORE and other NPAs

0.24

%

0.27

%

0.36

%

0.38

%

0.40

%

0.38

%

Classified asset ratio (Pinnacle Bank) (8)

5.6

%

6.8

%

7.3

%

8.1

%

9.9

%

11.2

%

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

0.16

%

0.17

%

0.20

%

0.19

%

0.23

%

0.10

%

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

46.0

46.1

45.2

45.1

45.2

45.1

Interest rates and yields:

Loans

4.13

%

4.11

%

4.11

%

4.20

%

4.04

%

4.16

%

Securities

2.04

%

2.25

%

2.29

%

2.27

%

2.38

%

2.59

%

Total earning assets

3.32

%

3.42

%

3.41

%

3.44

%

3.38

%

3.58

%

Total deposits, including non-interest bearing

0.17

%

0.20

%

0.26

%

0.33

%

0.43

%

0.55

%

Securities sold under agreements to repurchase

0.14

%

0.13

%

0.20

%

0.21

%

0.21

%

0.20

%

FHLB advances

2.04

%

2.03

%

1.95

%

2.00

%

1.82

%

1.73

%

Subordinated debt and other borrowings

4.45

%

4.52

%

4.22

%

4.13

%

3.99

%

4.42

%

Total deposits and interest-bearing liabilities

0.30

%

0.35

%

0.40

%

0.49

%

0.59

%

0.74

%

Capital and other ratios (8):

Pinnacle Financial ratios:

Stockholders' equity to total assets

14.2

%

14.4

%

14.0

%

14.0

%

14.2

%

14.1

%

Common equity Tier one

10.5

%

10.5

%

10.3

%

10.0

%

9.9

%

9.6

%

Tier one risk-based

11.3

%

11.3

%

11.2

%

10.9

%

10.7

%

10.4

%

Total risk-based

14.0

%

14.5

%

14.5

%

14.3

%

14.2

%

14.0

%

Leverage

9.3

%

9.2

%

8.9

%

8.6

%

8.5

%

8.4

%

Tangible common equity to tangible assets

9.0

%

9.0

%

8.6

%

8.5

%

8.5

%

8.3

%

Pinnacle Bank ratios:

Common equity Tier one

11.7

%

11.9

%

11.8

%

11.4

%

11.3

%

11.0

%

Tier one risk-based

11.7

%

11.9

%

11.8

%

11.4

%

11.3

%

11.0

%

Total risk-based

12.5

%

13.1

%

13.0

%

12.7

%

12.6

%

12.4

%

Leverage

9.7

%

9.6

%

9.4

%

9.1

%

8.9

%

8.9

%

Construction and land development loans

as a percentage of total capital (19)

89.3

%

80.1

%

76.0

%

89.0

%

86.7

%

83.6

%

Non-owner occupied commercial real estate and

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

252.4

%

248.8

%

256.0

%

264.0

%

268.8

%

275.0

%

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

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED



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

Asset qualityinformation and ratios:

Nonperforming assets:

Nonaccrual loans $ 46,692 53,105 72,135 73,836 71,390 62,562

ORE and othernonperforming assets 8,415 9,602 10,651 12,360 19,445 22,105 (NPAs)

Total nonperforming $ 55,107 62,707 82,786 86,196 90,835 84,667 assets

Past due loans over 90days and still $ 1,914 1,810 2,833 2,362 1,313 1,982 accruing interest

Accruing troubled debt $ 2,397 2,428 2,460 2,494 2,588 3,274 restructurings ^(5)

Accruing purchasecredit deteriorated $ 12,158 12,400 13,904 14,091 14,346 14,616 loans

Net loan charge-offs $ 9,281 9,968 11,397 10,775 13,057 5,384

Allowance for creditlosses to nonaccrual 575.3 % 515.5 % 389.4 % 386.1 % 404.3 % 456.1 %loans

As a percentage of total loans:

Past due accruing 0.09 % 0.07 % 0.09 % 0.19 % 0.11 % 0.09 %loans over 30 days

Potential problem 0.60 % 0.74 % 0.70 % 0.77 % 0.96 % 1.12 %loans ^(6)

Allowance for credit 1.17 % 1.20 % 1.22 % 1.27 % 1.28 % 1.27 %losses ^(20)

Nonperforming assetsto total loans, ORE 0.24 % 0.27 % 0.36 % 0.38 % 0.40 % 0.38 %and other NPAs

Classified asset ratio 5.6 % 6.8 % 7.3 % 8.1 % 9.9 % 11.2 %(Pinnacle Bank) ^(8)

Annualized net loancharge-offs to avg. 0.16 % 0.17 % 0.20 % 0.19 % 0.23 % 0.10 %loans ^(7)

Wtd. avg. commercialloan internal risk 46.0 46.1 45.2 45.1 45.2 45.1ratings ^(6)



Interest rates and yields:

Loans 4.13 % 4.11 % 4.11 % 4.20 % 4.04 % 4.16 %

Securities 2.04 % 2.25 % 2.29 % 2.27 % 2.38 % 2.59 %

Total earning assets 3.32 % 3.42 % 3.41 % 3.44 % 3.38 % 3.58 %

Total deposits,including non-interest 0.17 % 0.20 % 0.26 % 0.33 % 0.43 % 0.55 %bearing

Securities sold underagreements to 0.14 % 0.13 % 0.20 % 0.21 % 0.21 % 0.20 %repurchase

FHLB advances 2.04 % 2.03 % 1.95 % 2.00 % 1.82 % 1.73 %

Subordinated debt and 4.45 % 4.52 % 4.22 % 4.13 % 3.99 % 4.42 %other borrowings

Total deposits andinterest-bearing 0.30 % 0.35 % 0.40 % 0.49 % 0.59 % 0.74 %liabilities



Capital and other ratios ^(8):

Pinnacle Financial ratios:

Stockholders' equity 14.2 % 14.4 % 14.0 % 14.0 % 14.2 % 14.1 %to total assets

Common equity Tier one 10.5 % 10.5 % 10.3 % 10.0 % 9.9 % 9.6 %

Tier one risk-based 11.3 % 11.3 % 11.2 % 10.9 % 10.7 % 10.4 %

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

Leverage 9.3 % 9.2 % 8.9 % 8.6 % 8.5 % 8.4 %

Tangible common equity 9.0 % 9.0 % 8.6 % 8.5 % 8.5 % 8.3 %to tangible assets

Pinnacle Bank ratios:

Common equity Tier one 11.7 % 11.9 % 11.8 % 11.4 % 11.3 % 11.0 %

Tier one risk-based 11.7 % 11.9 % 11.8 % 11.4 % 11.3 % 11.0 %

Total risk-based 12.5 % 13.1 % 13.0 % 12.7 % 12.6 % 12.4 %

Leverage 9.7 % 9.6 % 9.4 % 9.1 % 8.9 % 8.9 %

Construction and landdevelopment loans 89.3 % 80.1 % 76.0 % 89.0 % 86.7 % 83.6 %as a percentage oftotal capital ^(19)

Non-owner occupiedcommercial real estateand 252.4 % 248.8 % 256.0 % 264.0 % 268.8 % 275.0 %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)

September

June

March

December

September

June

2021

2021

2021

2020

2020

2020

Per share data:

Earnings per common share - basic

$

1.76

1.70

1.61

1.42

1.42

0.83

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

$

1.76

1.69

1.61

1.58

1.45

0.89

Earnings per common share - diluted

$

1.75

1.69

1.61

1.42

1.42

0.83

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

$

1.75

1.68

1.61

1.58

1.45

0.89

Common dividends per share

$

0.18

0.18

0.18

0.16

0.16

0.16

Book value per common share at quarter end (9)

$

65.36

64.19

62.33

61.80

60.26

59.05

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

$

40.98

39.77

37.88

37.25

35.68

34.43

Revenue per diluted common share

$

4.50

4.37

4.17

4.03

3.95

3.63

Revenue per diluted common share, excluding non-GAAP adjustments

$

4.50

4.37

4.17

4.03

3.94

3.63

Investor information:

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

$

94.08

88.29

88.66

64.40

35.59

41.99

High closing sales price of common stock during quarter

$

98.00

92.94

93.58

65.51

44.47

48.98

Low closing sales price of common stock during quarter

$

83.84

84.25

63.48

35.97

33.28

33.24

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

$

28.14

29.13

27.62

27.69

26.49

25.98

High closing sales price of depositary shares during quarter

$

29.23

29.13

27.83

27.94

26.82

26.05

Low closing sales price of depositary shares during quarter

$

28.00

27.38

26.83

26.45

25.51

25.19

Other information:

Residential mortgage loan sales:

Gross loans sold

$

347,664

394,299

546,963

479,867

511,969

550,704

Gross fees (10)

$

11,215

15,552

18,793

23,729

23,557

16,381

Gross fees as a percentage of loans originated

3.23

%

3.94

%

3.44

%

4.94

%

4.60

%

2.97

%

Net gain on residential mortgage loans sold

$

7,814

6,700

13,666

12,387

19,453

19,619

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

$

-

366

-

-

651

(128)

Brokerage account assets, at quarter end (11)

$

6,597,152

6,344,416

5,974,884

5,509,560

4,866,726

4,499,856

Trust account managed assets, at quarter end

$

4,155,510

3,640,932

3,443,373

3,295,198

2,978,035

2,908,131

Core deposits (12)

$

27,170,367

25,857,639

24,971,177

23,510,883

22,003,989

21,391,794

Core deposits to total funding (12)

87.8

%

86.3

%

83.1

%

79.5

%

76.9

%

75.8

%

Risk-weighted assets

$

27,945,624

26,819,277

26,105,158

25,791,896

25,189,944

24,937,535

Number of offices

117

116

115

114

114

113

Total core deposits per office

$

232,225

222,911

217,141

206,236

193,017

189,308

Total assets per full-time equivalent employee

$

13,188

13,087

13,468

13,262

13,027

12,936

Annualized revenues per full-time equivalent employee

$

489.4

491.3

488.3

459.8

456.1

426.9

Annualized expenses per full-time equivalent employee

$

241.9

246.3

239.4

246.6

221.1

205.4

Number of employees (full-time equivalent)

2,769.5

2,706.0

2,621.0

2,634.0

2,596.5

2,577.5

Associate retention rate (13)

93.4

%

93.3

%

94.4

%

94.8

%

94.4

%

94.5

%

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

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED



(dollars in September June March December September Junethousands,except pershare data) 2021 2021 2021 2020 2020 2020



Per share data:

Earnings percommon share $ 1.76 1.70 1.61 1.42 1.42 0.83 - basic

Earnings percommon share- basic, $ 1.76 1.69 1.61 1.58 1.45 0.89 excludingnon-GAAPadjustments

Earnings percommon share $ 1.75 1.69 1.61 1.42 1.42 0.83 - diluted

Earnings percommon share- diluted, $ 1.75 1.68 1.61 1.58 1.45 0.89 excludingnon-GAAPadjustments

Commondividends per $ 0.18 0.18 0.18 0.16 0.16 0.16 share

Book valueper commonshare at $ 65.36 64.19 62.33 61.80 60.26 59.05 quarter end ^(9)

Tangible bookvalue percommon share $ 40.98 39.77 37.88 37.25 35.68 34.43 at quarterend ^(9)

Revenue perdiluted $ 4.50 4.37 4.17 4.03 3.95 3.63 common share

Revenue perdilutedcommon share, $ 4.50 4.37 4.17 4.03 3.94 3.63 excludingnon-GAAPadjustments



Investor information:

Closing salesprice ofcommon stock $ 94.08 88.29 88.66 64.40 35.59 41.99 on lasttrading dayof quarter

High closingsales priceof common $ 98.00 92.94 93.58 65.51 44.47 48.98 stock duringquarter

Low closingsales priceof common $ 83.84 84.25 63.48 35.97 33.28 33.24 stock duringquarter



Closing salesprice ofdepositaryshares on $ 28.14 29.13 27.62 27.69 26.49 25.98 last tradingday ofquarter

High closingsales priceof depositary $ 29.23 29.13 27.83 27.94 26.82 26.05 shares duringquarter

Low closingsales priceof depositary $ 28.00 27.38 26.83 26.45 25.51 25.19 shares duringquarter



Other information:

Residentialmortgage loan sales:

Gross loans $ 347,664 394,299 546,963 479,867 511,969 550,704 sold

Gross fees ^ $ 11,215 15,552 18,793 23,729 23,557 16,381 (10)

Gross fees asa percentage 3.23 % 3.94 % 3.44 % 4.94 % 4.60 % 2.97 %of loansoriginated

Net gain onresidential $ 7,814 6,700 13,666 12,387 19,453 19,619 mortgageloans sold

Investmentgains(losses) on $ - 366 - - 651 (128) sales ofsecurities,net ^(15)

Brokerageaccountassets, at $ 6,597,152 6,344,416 5,974,884 5,509,560 4,866,726 4,499,856 quarter end ^(11)

Trust accountmanaged $ 4,155,510 3,640,932 3,443,373 3,295,198 2,978,035 2,908,131 assets, atquarter end

Core deposits $ 27,170,367 25,857,639 24,971,177 23,510,883 22,003,989 21,391,794 ^(12)

Core depositsto total 87.8 % 86.3 % 83.1 % 79.5 % 76.9 % 75.8 %funding ^(12)

Risk-weighted $ 27,945,624 26,819,277 26,105,158 25,791,896 25,189,944 24,937,535 assets

Number of 117 116 115 114 114 113 offices

Total coredeposits per $ 232,225 222,911 217,141 206,236 193,017 189,308 office

Total assetsper full-time $ 13,188 13,087 13,468 13,262 13,027 12,936 equivalentemployee

Annualizedrevenues perfull-time $ 489.4 491.3 488.3 459.8 456.1 426.9 equivalentemployee

Annualizedexpenses perfull-time $ 241.9 246.3 239.4 246.6 221.1 205.4 equivalentemployee

Number ofemployees 2,769.5 2,706.0 2,621.0 2,634.0 2,596.5 2,577.5 (full-timeequivalent)

Associateretention 93.4 % 93.3 % 94.4 % 94.8 % 94.4 % 94.5 %rate ^(13)



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

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

Three months ended

Nine months ended

(dollars in thousands, except per share data)

September

June

September

September

September

2021

2021

2020

2021

2020

Net interest income

$

237,543

233,225

206,594

693,638

600,803

Noninterest income

104,095

98,207

91,065

295,011

234,396

Total revenues

341,638

331,432

297,659

988,649

835,199

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

-

(366

)

(651

)

(366

)

(986

)

Total revenues excluding the impact of adjustments noted above

$

341,638

331,066

297,008

988,283

834,213

Noninterest expense

$

168,851

166,140

143,852

489,687

403,150

Less: ORE expense

(79

)

(657

)

1,795

(749

)

7,098

FHLB restructuring charges

-

-

1,991

-

4,861

Noninterest expense excluding the impact of adjustments noted above

$

168,930

166,797

140,066

490,436

391,191

Pre-tax income

$

169,405

162,458

137,049

485,511

237,414

Provision for credit losses

3,382

2,834

16,758

13,451

194,635

Pre-tax pre-provision net revenue

172,787

165,292

153,807

498,962

432,049

Adjustments noted above

(79

)

(1,023

)

3,135

(1,115

)

10,973

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

$

172,708

164,269

156,942

497,847

443,022

Noninterest income

$

104,095

98,207

91,065

295,011

234,396

Less: Adjustments as noted above

-

(366

)

(651

)

(366

)

(986

)

Noninterest income excluding the impact of adjustments noted above

$

104,095

97,841

90,414

294,645

233,410

Efficiency ratio (4)

49.42

%

50.13

%

48.33

%

49.53

%

48.27

%

Adjustments as noted above

0.03

%

0.25

%

(1.17

)%

0.10

%

(1.38

)%

Efficiency ratio (excluding adjustments noted above) (4)

49.45

%

50.38

%

47.16

%

49.63

%

46.89

%

Total average assets

$

35,896,130

35,053,772

33,838,716

35,207,543

31,628,677

Noninterest income to average assets (1)

1.15

%

1.12

%

1.07

%

1.12

%

0.99

%

Adjustments as noted above

-

%

-

%

(0.01

)%

-

%

-

%

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

1.15

%

1.12

%

1.06

%

1.12

%

0.99

%

Noninterest expense to average assets (1)

1.87

%

1.90

%

1.69

%

1.86

%

1.70

%

Adjustments as noted above

-

%

0.01

%

(0.04

)%

-

%

(0.05

)%

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

1.87

%

1.91

%

1.65

%

1.86

%

1.65

%

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

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

Three months ended Nine months ended

(dollars in September June September September Septemberthousands,except pershare data) 2021 2021 2020 2021 2020



Net interest $ 237,543 233,225 206,594 693,638 600,803 income



Noninterest 104,095 98,207 91,065 295,011 234,396 income

Total 341,638 331,432 297,659 988,649 835,199 revenues

Less:Investment(gains)losses on - (366 ) (651 ) (366 ) (986 )sales ofsecurities,net

Totalrevenuesexcluding the $ 341,638 331,066 297,008 988,283 834,213 impact ofadjustmentsnoted above



Noninterest $ 168,851 166,140 143,852 489,687 403,150 expense

Less: ORE (79 ) (657 ) 1,795 (749 ) 7,098 expense

FHLBrestructuring - - 1,991 - 4,861 charges

Noninterestexpenseexcluding the $ 168,930 166,797 140,066 490,436 391,191 impact ofadjustmentsnoted above



Pre-tax $ 169,405 162,458 137,049 485,511 237,414 income

Provision for 3,382 2,834 16,758 13,451 194,635 credit losses

Pre-taxpre-provision 172,787 165,292 153,807 498,962 432,049 net revenue

Adjustments (79 ) (1,023 ) 3,135 (1,115 ) 10,973 noted above

Adjustedpre-taxpre-provision $ 172,708 164,269 156,942 497,847 443,022 net revenue ^(14)





Noninterest $ 104,095 98,207 91,065 295,011 234,396 income

Less:Adjustments - (366 ) (651 ) (366 ) (986 )as notedabove

Noninterestincomeexcluding the $ 104,095 97,841 90,414 294,645 233,410 impact ofadjustmentsnoted above



Efficiency 49.42 % 50.13 % 48.33 % 49.53 % 48.27 %ratio ^(4)

Adjustments ) )as noted 0.03 % 0.25 % (1.17 % 0.10 % (1.38 %above

Efficiencyratio(excluding 49.45 % 50.38 % 47.16 % 49.63 % 46.89 %adjustmentsnoted above)^(4)



Total average $ 35,896,130 35,053,772 33,838,716 35,207,543 31,628,677 assets



Noninterestincome to 1.15 % 1.12 % 1.07 % 1.12 % 0.99 %averageassets ^(1)

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

Noninterestincome(excludingadjustments 1.15 % 1.12 % 1.06 % 1.12 % 0.99 %noted above)to averageassets ^(1)



Noninterestexpense to 1.87 % 1.90 % 1.69 % 1.86 % 1.70 %averageassets ^(1)

Adjustments ) )as noted - % 0.01 % (0.04 % - % (0.05 %above

Noninterestexpense(excludingadjustments 1.87 % 1.91 % 1.65 % 1.86 % 1.65 %noted above)to averageassets ^(1)



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

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

Three months ended

(dollars in thousands, except per share data)

September

June

March

December

September

June

2021

2021

2021

2020

2020

2020

Net income available to common shareholders

$

132,779

127,992

121,630

107,078

106,847

62,444

Investment (gains) losses on sales of securities, net

-

(366

)

-

-

(651

)

128

ORE expense

(79

)

(657

)

(13

)

1,457

1,795

2,888

FHLB restructuring charges

-

-

-

10,307

1,991

2,870

Hedge termination charges

-

-

-

4,673

-

-

Tax effect on adjustments noted above (18)

21

267

3

(4,297

)

(819

)

(1,539

)

Net income available to common shareholders excluding adjustments noted above

$

132,721

127,236

121,620

119,218

109,163

66,791

Basic earnings per common share

$

1.76

1.70

1.61

1.42

1.42

0.83

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

-

-

-

-

(0.01

)

-

Adjustment due to ORE expense

-

(0.01

)

-

0.02

0.02

0.04

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

)

Basic earnings per common share excluding adjustments noted above

$

1.76

1.69

1.61

1.58

1.45

0.89

Diluted earnings per common share

$

1.75

1.69

1.61

1.42

1.42

0.83

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

-

-

-

-

(0.01

)

-

Adjustment due to ORE expense

-

(0.01

)

-

0.02

0.02

0.04

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

)

Diluted earnings per common share excluding the adjustments noted above

$

1.75

1.68

1.61

1.58

1.45

0.89

Revenue per diluted common share

$

4.50

4.37

4.17

4.03

3.95

3.63

Adjustments as noted above

-

-

-

-

(0.01

)

-

Revenue per diluted common share excluding adjustments noted above

$

4.50

4.37

4.17

4.03

3.94

3.63

Book value per common share at quarter end (9)

$

65.36

64.19

62.33

61.80

60.26

59.05

Adjustment due to goodwill, core deposit and other intangible assets

(24.38

)

(24.42

)

(24.45

)

(24.55

)

(24.59

)

(24.62

)

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

$

40.98

39.77

37.88

37.25

35.68

34.43

Equity method investment (17)

Fee income from BHG, net of amortization

$

30,409

32,071

28,950

24,294

26,445

17,208

Funding cost to support investment

379

1,230

1,205

1,222

1,231

2,134

Pre-tax impact of BHG

30,030

30,841

27,745

23,072

25,214

15,074

Income tax expense at statutory rates (18)

7,850

8,062

7,253

6,031

6,591

3,940

Earnings attributable to BHG

$

22,180

22,779

20,492

17,041

18,623

11,134

Basic earnings per common share attributable to BHG

$

0.29

0.30

0.27

0.23

0.25

0.15

Diluted earnings per common share attributable to BHG

$

0.29

0.30

0.27

0.23

0.25

0.15

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

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

Three months ended

(dollars in September June March December September Junethousands, exceptper share data) 2021 2021 2021 2020 2020 2020

Net incomeavailable to $ 132,779 127,992 121,630 107,078 106,847 62,444 commonshareholders

Investment (gains)losses on sales of - (366 ) - - (651 ) 128 securities, net

ORE expense (79 ) (657 ) (13 ) 1,457 1,795 2,888

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

Hedge termination - - - 4,673 - - charges

Tax effect onadjustments noted 21 267 3 (4,297 ) (819 ) (1,539 )above ^(18)

Net incomeavailable tocommonshareholders $ 132,721 127,236 121,620 119,218 109,163 66,791 excludingadjustments notedabove



Basic earnings per $ 1.76 1.70 1.61 1.42 1.42 0.83 common share

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

Adjustment due to - (0.01 ) - 0.02 0.02 0.04 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 )adjustments notedabove ^(18)

Basic earnings percommon shareexcluding $ 1.76 1.69 1.61 1.58 1.45 0.89 adjustments notedabove



Diluted earnings $ 1.75 1.69 1.61 1.42 1.42 0.83 per common share

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

Adjustment due to - (0.01 ) - 0.02 0.02 0.04 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 )adjustments notedabove ^(18)

Diluted earningsper common shareexcluding the $ 1.75 1.68 1.61 1.58 1.45 0.89 adjustments notedabove



Revenue perdiluted common $ 4.50 4.37 4.17 4.03 3.95 3.63 share

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

Revenue perdiluted commonshare excluding $ 4.50 4.37 4.17 4.03 3.94 3.63 adjustments notedabove



Book value percommon share at $ 65.36 64.19 62.33 61.80 60.26 59.05 quarter end ^(9)

Adjustment due togoodwill, core (24.38 ) (24.42 ) (24.45 ) (24.55 ) (24.59 ) (24.62 )deposit and otherintangible assets

Tangible bookvalue per common $ 40.98 39.77 37.88 37.25 35.68 34.43 share at quarterend ^(9)



Equity method investment ^(17)

Fee income fromBHG, net of $ 30,409 32,071 28,950 24,294 26,445 17,208 amortization

Funding cost to 379 1,230 1,205 1,222 1,231 2,134 support investment

Pre-tax impact of 30,030 30,841 27,745 23,072 25,214 15,074 BHG

Income tax expenseat statutory rates 7,850 8,062 7,253 6,031 6,591 3,940 ^(18)

Earningsattributable to $ 22,180 22,779 20,492 17,041 18,623 11,134 BHG



Basic earnings percommon share $ 0.29 0.30 0.27 0.23 0.25 0.15 attributable toBHG

Diluted earningsper common share $ 0.29 0.30 0.27 0.23 0.25 0.15 attributable toBHG



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

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

Nine months ended

(dollars in thousands, except per share data)

September

2021

2020

Net income available to common shareholders

$

382,401

197,647

Investment (gains) losses on sales of securities, net

(366

)

(986

)

ORE expense

(749

)

7,098

FHLB restructuring charges

-

4,861

Tax effect on adjustments noted above (18)

291

(2,868

)

Net income available to common shareholders excluding adjustments noted above

$

381,577

205,752

Basic earnings per common share

$

5.07

2.62

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

-

(0.01

)

Adjustment due to ORE expense

(0.01

)

0.09

Adjustment due to FHLB restructuring charges

-

0.06

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

-

(0.04

)

Basic earnings per common share excluding adjustments noted above

$

5.06

2.72

Diluted earnings per common share

5.05

2.62

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

-

(0.01

)

Adjustment due to ORE expense

(0.01

)

0.09

Adjustment due to FHLB restructuring charges

-

0.06

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

-

(0.04

)

Diluted earnings per common share excluding the adjustments noted above

$

5.04

2.72

Revenue per diluted common share

$

13.05

11.06

Adjustments as noted above

(0.01

)

(0.02

)

Revenue per diluted common share excluding adjustments noted above

$

13.04

11.04

Equity method investment (17)

Fee income from BHG, net of amortization

$

91,430

59,245

Funding cost to support investment

2,814

5,487

Pre-tax impact of BHG

88,616

53,758

Income tax expense at statutory rates (18)

23,164

14,052

Earnings attributable to BHG

$

65,452

39,706

Basic earnings per common share attributable to BHG

$

0.87

0.53

Diluted earnings per common share attributable to BHG

$

0.86

0.53

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

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

Nine months ended

September(dollars in thousands, except per share data) 2021 2020

Net income available to common shareholders $ 382,401 197,647

Investment (gains) losses on sales of securities, net (366 ) (986 )

ORE expense (749 ) 7,098

FHLB restructuring charges - 4,861

Tax effect on adjustments noted above ^(18) 291 (2,868 )

Net income available to common shareholders excluding $ 381,577 205,752 adjustments noted above



Basic earnings per common share $ 5.07 2.62

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

Adjustment due to ORE expense (0.01 ) 0.09

Adjustment due to FHLB restructuring charges - 0.06

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

Basic earnings per common share excluding adjustments $ 5.06 2.72 noted above



Diluted earnings per common share 5.05 2.62

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

Adjustment due to ORE expense (0.01 ) 0.09

Adjustment due to FHLB restructuring charges - 0.06

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

Diluted earnings per common share excluding the $ 5.04 2.72 adjustments noted above



Revenue per diluted common share $ 13.05 11.06

Adjustments as noted above (0.01 ) (0.02 )

Revenue per diluted common share excluding adjustments $ 13.04 11.04 noted above



Equity method investment ^(17)

Fee income from BHG, net of amortization $ 91,430 59,245

Funding cost to support investment 2,814 5,487

Pre-tax impact of BHG 88,616 53,758

Income tax expense at statutory rates ^(18) 23,164 14,052

Earnings attributable to BHG $ 65,452 39,706



Basic earnings per common share attributable to BHG $ 0.87 0.53

Diluted earnings per common share attributable to BHG $ 0.86 0.53



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



PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

Three months ended

Nine months ended

(dollars in thousands, except per share data)

September

June

September

September

September

2021

2021

2020

2021

2020

Return on average assets (1)

1.47

%

1.46

%

1.26

%

1.45

%

0.83

%

Adjustments as noted above

-

%

-

%

0.02

%

-

%

0.04

%

Return on average assets excluding adjustments noted above (1)

1.47

%

1.46

%

1.28

%

1.45

%

0.87

%

Tangible assets:

Total assets

$

36,523,936

35,412,309

33,824,931

$

36,523,936

33,824,931

Less: Goodwill

(1,819,811

)

(1,819,811

)

(1,819,811

)

(1,819,811

)

(1,819,811

)

Core deposit and other intangible assets

(35,876

)

(37,963

)

(44,713

)

(35,876

)

(44,713

)

Net tangible assets

$

34,668,249

33,554,535

31,960,407

$

34,668,249

31,960,407

Tangible common equity:

Total stockholders' equity

$

5,191,798

5,101,231

4,787,308

$

5,191,798

4,787,308

Less: Preferred stockholders' equity

(217,126

)

(217,126

)

(217,126

)

(217,126

)

(217,126

)

Total common stockholders' equity

4,974,672

4,884,105

4,570,182

4,974,672

4,570,182

Less: Goodwill

(1,819,811

)

(1,819,811

)

(1,819,811

)

(1,819,811

)

(1,819,811

)

Core deposit and other intangible assets

(35,876

)

(37,963

)

(44,713

)

(35,876

)

(44,713

)

Net tangible common equity

$

3,118,985

3,026,331

2,705,658

$

3,118,985

2,705,658

Ratio of tangible common equity to tangible assets

9.00

%

9.02

%

8.47

%

9.00

%

8.47

%

Average tangible assets:

Average assets

$

35,896,130

35,053,772

33,838,716

$

35,207,543

31,628,677

Less: Average goodwill

(1,819,811

)

(1,819,811

)

(1,819,811

)

(1,819,811

)

(1,819,811

)

Average core deposit and other intangible assets

(37,228

)

(39,360

)

(46,272

)

(39,372

)

(48,308

)

Net average tangible assets

$

34,039,091

33,194,601

31,972,633

$

33,348,360

29,760,558

Return on average assets (1)

1.47

%

1.46

%

1.26

%

1.45

%

0.83

%

Adjustment due to goodwill, core deposit and other intangible assets

0.08

%

0.09

%

0.07

%

0.08

%

0.06

%

Return on average tangible assets (1)

1.55

%

1.55

%

1.33

%

1.53

%

0.89

%

Adjustments as noted above

-

%

(0.01

)%

0.03

%

-

%

0.03

%

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

1.55

%

1.54

%

1.36

%

1.53

%

0.92

%

Average tangible common equity:

Average stockholders' equity

$

5,176,625

5,039,608

4,765,864

$

5,057,447

4,561,567

Less: Average preferred equity

(217,126

)

(217,126

)

(217,535

)

(217,126

)

(92,831

)

Average common equity

4,959,499

4,822,482

4,548,329

4,840,321

4,468,736

Less: Average goodwill

(1,819,811

)

(1,819,811

)

(1,819,811

)

(1,819,811

)

(1,819,811

)

Average core deposit and other intangible assets

(37,228

)

(39,360

)

(46,272

)

(39,372

)

(48,308

)

Net average tangible common equity

$

3,102,460

2,963,311

2,682,246

$

2,981,138

2,600,617

Return on average equity (1)

10.18

%

10.19

%

8.92

%

10.11

%

5.79

%

Adjustment due to average preferred stockholders' equity

0.44

%

0.46

%

0.43

%

0.45

%

0.12

%

Return on average common equity (1)

10.62

%

10.65

%

9.35

%

10.56

%

5.91

%

Adjustment due to goodwill, core deposit and other intangible assets

6.36

%

6.67

%

6.50

%

6.59

%

4.24

%

Return on average tangible common equity (1)

16.98

%

17.32

%

15.85

%

17.15

%

10.15

%

Adjustments as noted above

(0.01

)%

(0.10

)%

0.34

%

(0.04

)%

0.42

%

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

16.97

%

17.22

%

16.19

%

17.11

%

10.57

%

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

1.17

%

1.20

%

1.28

%

1.17

%

1.28

%

Impact of excluding PPP loans from total loans

0.03

%

0.07

%

0.15

%

0.03

%

0.15

%

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

1.20

%

1.27

%

1.43

%

1.20

%

1.43

%

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

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

Three months ended Nine months ended

(dollars in September June September September Septemberthousands,except pershare data) 2021 2021 2020 2021 2020



Return onaverage 1.47 % 1.46 % 1.26 % 1.45 % 0.83 %assets ^(1)

Adjustmentsas noted - % - % 0.02 % - % 0.04 %above

Return onaverageassetsexcluding 1.47 % 1.46 % 1.28 % 1.45 % 0.87 %adjustmentsnoted above ^(1)



Tangible assets:

Total assets $ 36,523,936 35,412,309 33,824,931 $ 36,523,936 33,824,931

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

Core depositand other (35,876 ) (37,963 ) (44,713 ) (35,876 ) (44,713 )intangibleassets

Net tangible $ 34,668,249 33,554,535 31,960,407 $ 34,668,249 31,960,407 assets



Tangiblecommon equity:

Totalstockholders' $ 5,191,798 5,101,231 4,787,308 $ 5,191,798 4,787,308 equity

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

Total commonstockholders' 4,974,672 4,884,105 4,570,182 4,974,672 4,570,182 equity

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

Core depositand other (35,876 ) (37,963 ) (44,713 ) (35,876 ) (44,713 )intangibleassets

Net tangible $ 3,118,985 3,026,331 2,705,658 $ 3,118,985 2,705,658 common equity



Ratio oftangiblecommon equity 9.00 % 9.02 % 8.47 % 9.00 % 8.47 %to tangibleassets



Averagetangible assets:

Average $ 35,896,130 35,053,772 33,838,716 $ 35,207,543 31,628,677 assets

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

Average coredeposit andother (37,228 ) (39,360 ) (46,272 ) (39,372 ) (48,308 )intangibleassets

Net averagetangible $ 34,039,091 33,194,601 31,972,633 $ 33,348,360 29,760,558 assets



Return onaverage 1.47 % 1.46 % 1.26 % 1.45 % 0.83 %assets ^(1)

Adjustmentdue togoodwill,core deposit 0.08 % 0.09 % 0.07 % 0.08 % 0.06 %and otherintangibleassets

Return onaverage 1.55 % 1.55 % 1.33 % 1.53 % 0.89 %tangibleassets ^(1)

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

Return onaveragetangibleassets 1.55 % 1.54 % 1.36 % 1.53 % 0.92 %excludingadjustmentsnoted above ^(1)



Averagetangible commonequity:

Averagestockholders' $ 5,176,625 5,039,608 4,765,864 $ 5,057,447 4,561,567 equity

Less: Averagepreferred (217,126 ) (217,126 ) (217,535 ) (217,126 ) (92,831 )equity

Average 4,959,499 4,822,482 4,548,329 4,840,321 4,468,736 common equity

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

Average coredeposit andother (37,228 ) (39,360 ) (46,272 ) (39,372 ) (48,308 )intangibleassets

Net averagetangible $ 3,102,460 2,963,311 2,682,246 $ 2,981,138 2,600,617 common equity



Return onaverage 10.18 % 10.19 % 8.92 % 10.11 % 5.79 %equity^ (1)

Adjustmentdue toaverage 0.44 % 0.46 % 0.43 % 0.45 % 0.12 %preferredstockholders'equity

Return onaverage 10.62 % 10.65 % 9.35 % 10.56 % 5.91 %common equity^(1)

Adjustmentdue togoodwill,core deposit 6.36 % 6.67 % 6.50 % 6.59 % 4.24 %and otherintangibleassets

Return onaveragetangible 16.98 % 17.32 % 15.85 % 17.15 % 10.15 %common equity^(1)

Adjustments ) ) )as noted (0.01 % (0.10 % 0.34 % (0.04 % 0.42 %above

Return onaveragetangiblecommon equity 16.97 % 17.22 % 16.19 % 17.11 % 10.57 %excludingadjustmentsnoted above ^(1)



Allowance forcredit losseson loans as a 1.17 % 1.20 % 1.28 % 1.17 % 1.28 %percent oftotal loans

Impact ofexcluding PPP 0.03 % 0.07 % 0.15 % 0.03 % 0.15 %loans fromtotal loans

Allowance asadjusted forthe aboveexclusion of 1.20 % 1.27 % 1.43 % 1.20 % 1.43 %PPP loansfrom totalloans



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

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

1. Ratios are presented on an annualized basis.

2. Net interest margin is the result of net interest income on a tax 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 net revenue excludes the impact of ORE 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

View source version on businesswire.com: https://www.businesswire.com/news/home/20211012006166/en/

CONTACT: MEDIA CONTACT: Joe Bass, 615-743-8219

CONTACT: FINANCIAL CONTACT: Harold Carpenter, 615-744-3742

CONTACT: WEBSITE:www.pnfp.com