EX-99.1 2 a3q22pnfpearningsrelease.htm EX-99.1 Document

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

PNFP REPORTS DILUTED EPS OF $1.91, ROAA OF 1.42% AND ROATCE OF 17.40% FOR 3Q2022
3Q22 annualized linked-quarter loan growth of 20.9% while core deposits grew 9.8%

NASHVILLE, TN, Oct. 18, 2022 - Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported net income per diluted common share of $1.91 for the quarter ended Sept. 30, 2022, compared to net income per diluted common share of $1.75 for the quarter ended Sept. 30, 2021, an increase of 9.1 percent. Net income per diluted common share was $5.42 for the nine months ended Sept. 30, 2022, compared to $5.05 for the nine months ended Sept. 30, 2021, an increase of 7.3 percent.
Paycheck Protection Program (PPP) net interest income for the three months ended Sept. 30, 2022 and 2021 was approximately $755,000 and $20.4 million, respectively. PPP net interest income for the nine months ended Sept. 30, 2022 and 2021 was $15.5 million and $66.0 million, respectively. PPP net interest income contributed $0.01 and $0.15 to diluted earnings per common share for the three and nine months ended Sept. 30, 2022, respectively, compared to contributions of $0.20 and $0.64 for the three and nine months ended Sept. 30, 2021, respectively.
"There is little doubt that we continue to operate in a weakening economy," said M. Terry Turner, Pinnacle’s president and chief executive officer. "Nevertheless our relentless focus on those items that we believe are most highly correlated with total shareholder returns resulted in year-over-year growth in earnings per diluted share of 9.1 percent, organic revenue growth of 20.2 percent, book value per share accretion of 2.6 percent and tangible book value per share accretion of 3.6 percent.
"The key to our continued strong growth and strong asset quality metrics has been our ability to attract the best bankers in our markets from our competitors. We have hired 118 revenue producers thus far this year, including 53 in the third quarter, so we are well on pace to surpass our hiring successes of the past two years. As a result, we believe we are extremely well positioned to seize the significant opportunities arising from the substantial market disruption we see occurring across our footprint and to continue producing sound growth in what is likely to be a more challenging economic landscape. Our third quarter results increased our belief that our proven and unique business model should continue to produce outsized revenue growth, earnings growth and tangible book value accretion through a more challenging operating environment."

BALANCE SHEET GROWTH:

Total assets at Sept. 30, 2022 were $41.0 billion, an increase of approximately $4.5 billion from Sept. 30, 2021, reflecting a year-over-year increase of 12.3 percent. A further analysis of select balance sheet trends follows:
Balances at Balances at
(dollars in thousands)Sept. 30, 2022June 30, 2022Linked-Quarter
Annualized
% Change		Sept. 30, 2021Year-over-Year
% Change
Loans$27,711,694 $26,333,096 20.9%$23,058,461 20.2%
Less: PPP loans10,72351,100(316.1)%708,722(98.5)%
Loans excluding PPP loans27,700,97126,281,99621.6%22,349,73923.9%
Securities and other interest-earning assets8,706,4539,342,543(27.2)%9,538,824(8.7)%
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Balances at Balances at
(dollars in thousands)Sept. 30, 2022June 30, 2022Linked-Quarter
Annualized
% Change		Sept. 30, 2021Year-over-Year
% Change
Total interest-earning assets excluding PPP loans$36,407,424 $35,624,539 8.8%$31,888,563 14.2%
Core deposits:
Noninterest-bearing deposits10,567,87311,058,198(17.7)%9,809,6917.7%
Interest-bearing core deposits(1)
20,180,94418,953,24625.9%17,360,676 16.2%
Noncore deposits and other funding(2)
4,444,8684,496,117(4.6)%3,778,885 17.6%
Total funding $35,193,685 $34,507,561 8.0%$30,949,252 13.7%
(1): Interest-bearing core deposits are interest-bearing deposits, money market accounts, time deposits less than $250,000 and reciprocating time and money market deposits issued through the IntraFi Network.
(2): Noncore deposits and other funding consists of time deposits greater than $250,000, securities sold under agreements to repurchase, public funds, brokered deposits, FHLB advances and subordinated debt.

"In conjunction with our hiring success in recent years, we again experienced strong growth in loans during the third quarter with an annualized growth rate of 20.9 percent over June 30, 2022 balances," Turner said. "Our core deposits increased during the third quarter by 9.8 percent annualized over the June 30, 2022 balances. Also, during the quarter we got further confirmation regarding the effectiveness of our model based on FDIC summary of deposit data as of June 30, 2022 where we learned that we increased our deposit market share in virtually every market in which we operate. The Nashville MSA was particularly noteworthy where total deposits grew approximately 3.5 percent year-over-year, and we captured 57 percent of all that growth. We believe our longstanding ability to take deposit market share will serve us well in a period where many are forecasting a contraction in M2, which is highly correlated to shrinking deposit balances."

PRE-TAX, PRE-PROVISION NET REVENUE (PPNR) GROWTH:

Pre-tax, pre-provision net revenues (PPNR) for the quarter ended Sept. 30, 2022 were $211.3 million, an increase of 22.3 percent from the $172.8 million recognized in the quarter ended Sept. 30, 2021.
Three months ended Nine months ended
Sept. 30,Sept. 30,
(dollars in thousands)20222021 % change20222021% change
Revenues:
Net interest income$305,784 $237,543 28.7 %$809,833 $693,638 16.8 %
Noninterest income104,805 104,095 0.7 %333,803 295,011 13.1 %
Total revenues410,589 341,638 20.2 %1,143,636 988,649 15.7 %
Noninterest expense199,253 168,851 18.0 %577,952 489,687 18.0 %
Pre-tax, pre-provision net revenue (PPNR)211,336 172,787 22.3 %565,684 498,962 13.4 %
Adjustments:
Investment (gains) losses on sales of securities, net(217)— NM(156)(366)NM
ORE expense (benefit)(90)(79)NM101 (749)NM
Adjusted PPNR$211,029 $172,708 22.2 %$565,629 $497,847 13.6 %

•Revenue per fully diluted common share increased for the 11th consecutive quarter to $5.40 for the three months ended Sept. 30, 2022, compared to $5.14 for the second quarter of 2022 and $4.50 for the third quarter of 2021, a 20.0 percent year-over-year growth rate.
•Net interest income for the quarter ended Sept. 30, 2022 was $305.8 million, compared to $264.6 million for the second quarter of 2022 and $237.5 million for the third quarter of 2021, a year-over-year growth rate of 28.7 percent.
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◦Revenues from PPP loans approximated $755,000 in the third quarter of 2022, compared to $4.1 million in the second quarter of 2022 and $20.4 million in the third quarter of 2021. At Sept. 30, 2022, remaining unamortized fees for PPP loans were approximately $333,000.
◦Included in net interest income for the third quarter of 2022 was $1.3 million of discount accretion associated with fair value adjustments, compared to $1.6 million of discount accretion recognized in the second quarter of 2022 and $2.8 million in the third quarter of 2021. There remains $4.4 million of purchase accounting discount accretion as of Sept. 30, 2022.
•Noninterest income for the quarter ended Sept. 30, 2022 was $104.8 million, compared to $125.5 million for the second quarter of 2022 and $104.1 million for the third quarter of 2021, a year-over-year growth rate of 0.7 percent.
◦Wealth management revenues, which include investment, trust and insurance services, were $19.4 million for the third quarter of 2022, compared to $21.8 million for the second quarter of 2022 and $17.3 million reported for the third quarter of 2021, a year-over-year increase of 12.5 percent.
◦Service charges on deposit accounts were $10.9 million for the quarter ended Sept. 30, 2022, compared to $11.6 million for the quarter ended June 30, 2022 and $11.4 million for the quarter ended Sept. 30, 2021. Service charge revenues were negatively impacted by the previously disclosed changes in the firm's insufficient funds and overdraft programs during the third quarter of 2022 by approximately $500,000.
◦Income from the firm's investment in BHG was $41.3 million for the quarter ended Sept. 30, 2022, down from $49.5 million for the quarter ended June 30, 2022 and up from $30.4 million for the quarter ended Sept. 30, 2021. During the third quarter of 2022, BHG placed approximately $555 million in loans with community banks compared to approximately $658 million in the second quarter of 2022. Additionally, BHG completed another securitization during the third quarter of 2022 for approximately $412 million in funding secured by previously funded loans. This was the third securitization completed in 2022.
◦Other noninterest income was $31.8 million for the quarter ended Sept. 30, 2022, compared to $40.4 million for the quarter ended June 30, 2022 and $37.2 million for the quarter ended Sept. 30, 2021, a linked-quarter annualized decrease of 85.4 percent and year-over-year decline of 14.5 percent, respectively.
▪Third quarter 2022 gains from market valuation adjustments in other equity investments decreased to approximately $725,000, compared to $6.7 million in the second quarter of 2022 and $8.6 million in the third quarter of 2021.
•Noninterest expense for the quarter ended Sept. 30, 2022 was $199.3 million, compared to $196.0 million in the second quarter of 2022 and $168.9 million in the third quarter of 2021, reflecting a linked-quarter annualized growth rate of 6.6 percent and a year-over-year increase of 18.0 percent.
◦Salaries and employee benefits were $129.9 million in the third quarter of 2022, compared to $126.6 million in the second quarter of 2022 and $112.4 million in the third quarter of 2021, reflecting a linked-quarter annualized growth rate of 10.4 percent and a year-over-year increase of 15.6 percent.
▪Increase in headcount is a meaningful factor to the growth in compensation. Total full-time equivalent associates amounted to 3,184.5 associates at Sept. 30, 2022, compared to 2,769.5 full-time equivalent associates at Sept. 30, 2021, a year-over-year increase in headcount of 15.0 percent.
▪Costs related to the firm's incentive plans increased to $30.7 million in the third quarter of 2022 compared to $30.2 million in the third quarter of 2021 due to increased personnel as well as increased earnings and PPNR, which are primary factors in determining the costs of the firm's annual cash incentive compensation awards.
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◦Noninterest expense categories, other than salaries and employee benefits, were $69.3 million in the third quarter of 2022, compared to $69.4 million in the second quarter of 2022 and $56.4 million in the third quarter of 2021, reflecting a year-over-year increase of 22.9 percent.
"We are very pleased with our PPNR results for the third quarter," said Harold R. Carpenter, Pinnacle’s chief financial officer. "We continue to overcome the headwinds from declines in residential mortgage lending, the winding down of PPP lending, declining stock market valuations and the broader impact of inflation. Loan growth, as well as the impact of the rising short-term rate environment, contributed to an increase of $41.2 million in net interest income in the third quarter of 2022 as compared to the second quarter of 2022.
"We anticipated fee revenues to decrease in the third quarter, since the second quarter included all-time high marks from BHG and other fee categories, with significant contributions from market valuation adjustments for other equity investments that we own. Although BHG reported less revenue, they had another extremely strong quarter. Market valuation adjustments from our other equity investments fell by $5.9 million between the second and third quarters. We now estimate our total 2022 revenues (net interest income and noninterest income) should approximate a high-teens percentage increase over that of 2021.
"As to expenses, compensation costs increased approximately 15.6 percent over the same quarter last year, due primarily to increased opportunities to hire the best bankers and investment professionals in our markets. We are optimistic that our hiring model will continue to provide us even more opportunities to add revenue producers this year. Including the impact of inflation and the acquisition of JB&B Capital, LLC in the first quarter of this year, our expenses, comparing the third quarter of 2022 to the same quarter in 2021, have increased by 18.0 percent. We now estimate our total 2022 noninterest expense should approximate a high-teens percentage increase over that of 2021."

SOUNDNESS AND PROFITABILITY:
Three months endedNine months ended
Sept. 30, 2022June 30, 2022Sept. 30, 2021Sept. 30, 2022Sept. 30, 2021
Net interest margin3.47 %3.17 %3.03 %3.18 %3.05 %
Efficiency ratio48.53 %50.26 %49.42 %50.54 %49.53 %
Return on average assets1.42 %1.46 %1.47 %1.40 %1.45 %
Return on average tangible common equity (TCE)17.40 %17.62 %16.98 %16.89 %17.15 %
As of
Sept. 30, 2022June 30, 2022Sept. 30, 2021
Stockholder's equity to total assets13.0 %13.2 %14.2 %
Tangible common equity to tangible assets8.3 %8.4 %9.0 %
Book value per common share$67.07 $66.74 $65.36 
Tangible book value per common share$42.44 $42.08 $40.98 
Annualized net loan charge-offs to avg. loans (1)
0.16 %0.01 %0.16 %
Nonperforming assets to total loans, ORE and other nonperforming assets (NPAs)0.15 %0.09 %0.24 %
Classified asset ratio (Pinnacle Bank) (2)
2.60 %2.90 %5.60 %
Allowance for credit losses (ACL) to total loans 1.04 %1.03 %1.17 %
ACL to total loans, excluding PPP1.04 %1.04 %1.20 %
(1): Annualized net loan charge-offs to average loans ratios are computed by annualizing quarterly net loan charge-offs and dividing the result by average loans for the quarter.
(2): Classified assets as a percentage of Tier 1 capital plus allowance for credit losses.

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•Net interest margin was 3.47 percent for the third quarter of 2022, compared to 3.17 percent for the second quarter of 2022 and 3.03 percent for the third quarter of 2021. Net interest margin for the nine months ended Sept. 30, 2022 was 3.18 percent compared to 3.05 percent for the nine months ended Sept. 30, 2021.
◦PPP loans impacted the firm’s net interest margin beginning in the second quarter of 2020 and have continued to impact net interest margin through the third quarter of 2022. Additionally, the firm’s decision early in the pandemic to maintain additional on-balance sheet liquidity also impacted net interest margin in each of fiscal years 2020 and 2021. The firm estimates its second and third quarter 2022 net interest margin was negatively impacted by approximately 12 and 9 basis points, respectively, compared to approximately 12 basis points in each of the second and third quarter of 2021 as a result of these factors.
•Provision for credit losses was $27.5 million in the third quarter of 2022 compared to $12.9 million in the second quarter of 2022 and $3.4 million in the third quarter of 2021. Net charge-offs were $11.0 million for the quarter ended Sept. 30, 2022, compared to $877,000 for the quarter ended June 30, 2022 and $9.3 million for the quarter ended Sept. 30, 2021. Annualized net loan charge-offs for the third quarter of 2022 were 0.16 percent.
•Nonperforming assets were $41.9 million at Sept. 30, 2022, compared to $23.7 million at June 30, 2022 and $55.1 million at Sept. 30, 2021, down 24.0 percent over the same quarter last year. The ratio of the allowance for credit losses to nonperforming loans at Sept. 30, 2022 was 844.5 percent, compared to 1,762.6 percent at June 30, 2022 and 575.3 percent at Sept. 30, 2021.
•Classified assets were $107.9 million at Sept. 30, 2022, compared to $112.5 million at June 30, 2022 and $196.3 million at Sept. 30, 2021, down 45.0 percent over the same quarter last year.

"During the third quarter, our net interest margin increased by approximately 30 basis points, our efficiency ratio improved by 173 basis points, and our return metrics were basically consistent with our strong second quarter results," Carpenter said. "We are also pleased that our tangible book value per share increased again this quarter, despite the impact of rising rates on our investment securities portfolio. Our credit metrics declined slightly in the quarter but remain strong in comparison to historical metrics, which we believe is the result of our credit officers continuing to remain active in proactively conducting portfolio reviews and fine tuning underwriting given forecasts for a weakening economy.
"We believe we have the most experienced bankers in our markets and, as a result, believe this experience translates into a client base of seasoned borrowers. We have long shown that we can grow our franchise organically, which we also believe enhances long-term credit soundness. Furthermore, we operate in many of the best banking markets in the nation where the local economies seem to be better weathering the current economic challenges."

BOARD OF DIRECTORS DECLARES DIVIDENDS

On Oct. 18, 2022, Pinnacle Financial's Board of Directors approved a quarterly cash dividend of $0.22 per common share to be paid on Nov. 25, 2022 to common shareholders of record as of the close of business on Nov. 4, 2022. 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, 2022 to shareholders of record at the close of business on Nov. 16, 2022. 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. 19, 2022, to discuss third quarter 2022 results and
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other matters. To access the call for audio only, please call 1-877-209-7255. 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 2022 deposit data from the FDIC, is listed by Forbes among the top 25 banks in the nation and earned a spot on the 2022 list of 100 Best Companies to Work For® in the U.S., its sixth consecutive appearance. Pinnacle was also listed in Fortune magazine as the second best company to work for in the U.S. for women. American Banker recognized Pinnacle as one of America’s Best Banks to Work For nine years in a row and No. 1 among banks with more than $11 billion in assets in 2021.
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. 4 on its 2021 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 $41.0 billion in assets as of Sept. 30, 2022. As the second-largest bank holding company headquartered in Tennessee, Pinnacle operates in 15 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.
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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, including as a result of the negative impact of inflationary pressures on our and BHG's customers and their businesses resulting in significant increases in loan losses and provisions for those losses and, in the case of BHG, substitutions; (ii) 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; (iii) 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; (iv) 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; (v) the ability to grow and retain low-cost core deposits and retain large, uninsured deposits, including during times when Pinnacle Bank is seeking to limit the rates it pays on deposits; (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) 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; (x) the efficacy of vaccines against the COVID-19 virus, including new variants; (xi) the results of regulatory examinations; (xii) Pinnacle Financial's ability to identify potential candidates for, consummate, and achieve synergies from, potential future acquisitions; (xiii) difficulties and delays in integrating acquired businesses or fully realizing costs savings and other benefits from acquisitions; (xiv) BHG's ability to profitably grow its business and successfully execute on its business plans; (xv) risks of expansion into new geographic or product markets; (xvi) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including goodwill or other intangible assets; (xvii) the ineffectiveness of Pinnacle Bank's hedging strategies, or the unexpected
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counterparty failure or hedge failure of the underlying hedges; (xviii) reduced ability to attract additional financial advisors (or failure of such advisors to cause their clients to switch to Pinnacle Bank), to retain financial advisors (including as a result of the competitive environment for associates) or otherwise to attract customers from other financial institutions; (xix) deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xx) inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies, required capital maintenance levels or regulatory requests or directives, particularly if Pinnacle Bank's level of applicable commercial real estate loans were to exceed percentage levels of total capital in guidelines recommended by its regulators; (xxi) approval of the declaration of any dividend by Pinnacle Financial's board of directors; (xxii) the vulnerability of Pinnacle Bank's network and online banking portals, and the systems of parties with whom Pinnacle Bank contracts, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; (xxiii) the possibility of increased compliance and operational costs as a result of increased regulatory oversight (including by the Consumer Financial Protection Bureau), including oversight of companies in which Pinnacle Financial or Pinnacle Bank have significant investments, like BHG, and the development of additional banking products for Pinnacle Bank's corporate and consumer clients; (xxiv) the risks associated with Pinnacle Financial and Pinnacle Bank being a minority investor in BHG, including the risk that the owners of a majority of the equity interests in BHG decide to sell the company or all or a portion of their ownership interests in BHG (triggering a similar sale by Pinnacle Financial and Pinnacle Bank); (xxv) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, like BHG, including regulatory or legislative developments; (xxvi) fluctuations in the valuations of Pinnacle Financial's equity investments and the ultimate success of such investments; (xxvii) the availability of and access to capital; (xxviii) 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 (xxix) 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, 2021, 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 and other matters for the accounting periods presented. This release also includes non-GAAP financial measures which exclude the impact of loans originated and forgiven and repaid 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 2022 versus certain periods in 2021 and to internally prepared projections.

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PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS – UNAUDITED
(dollars in thousands, except for share and per share data)September 30, 2022December 31, 2021September 30, 2021
ASSETS
Cash and noninterest-bearing due from banks$168,010 $188,287 $155,965 
Restricted cash18,636 82,505 104,157 
Interest-bearing due from banks1,616,878 3,830,747 3,206,383 
Cash and cash equivalents1,803,524 4,101,539 3,466,505 
Securities purchased with agreement to resell528,999 1,000,000 500,000 
Securities available-for-sale, at fair value3,542,601 4,914,194 4,634,653 
Securities held-to-maturity (fair value of $2.5 billion, $1.2 billion, and $1.0 billion, net of allowance for credit losses of $1.6 million, $161 and $161 at Sept. 30, 2022, Dec. 31, 2021 and Sept. 30, 2021, respectively)2,938,417 1,155,958 989,237 
Consumer loans held-for-sale45,509 45,806 55,273 
Commercial loans held-for-sale15,413 17,685 49,121 
Loans27,711,694 23,414,262 23,058,461 
Less allowance for credit losses(288,088)(263,233)(268,635)
Loans, net27,423,606 23,151,029 22,789,826 
Premises and equipment, net320,273 288,182 288,833 
Equity method investment425,892 360,833 333,764 
Accrued interest receivable110,170 98,813 89,137 
Goodwill1,846,466 1,819,811 1,819,811 
Core deposits and other intangible assets35,666 33,819 35,876 
Other real estate owned7,787 8,537 8,415 
Other assets1,955,795 1,473,193 1,463,485 
Total assets$41,000,118 $38,469,399 $36,523,936 
LIABILITIES AND STOCKHOLDERS' EQUITY 
Deposits: 
Noninterest-bearing$10,567,873 $10,461,071 $9,809,691 
Interest-bearing7,549,510 6,530,015 5,767,286 
Savings and money market accounts12,712,809 12,179,663 11,381,033 
Time2,859,857 2,133,784 2,411,797 
Total deposits33,690,049 31,304,533 29,369,807 
Securities sold under agreements to repurchase190,554 152,559 148,240 
Federal Home Loan Bank advances889,248 888,681 888,493 
Subordinated debt and other borrowings423,834 423,172 542,712 
Accrued interest payable10,202 12,504 11,838 
Other liabilities454,119 377,343 371,048 
Total liabilities35,658,006 33,158,792 31,332,138 
Preferred stock, no par value, 10.0 million shares authorized; 225,000 shares non-cumulative perpetual preferred stock, Series B, liquidation preference $225.0 million, issued and outstanding at Sept. 30, 2022, Dec. 31, 2021 and Sept. 30, 2021, respectively217,126 217,126 217,126 
Common stock, par value $1.00; 180.0 million shares authorized; 76.4 million, 76.1 million and 76.1 million shares issued and outstanding at Sept. 30, 2022, Dec. 31, 2021, and Sept. 30, 2021, respectively76,413 76,143 76,115 
Additional paid-in capital3,066,527 3,045,802 3,038,800 
Retained earnings2,224,736 1,864,350 1,748,491 
Accumulated other comprehensive income (loss), net of taxes(242,690)107,186 111,266 
Total stockholders' equity5,342,112 5,310,607 5,191,798 
Total liabilities and stockholders' equity$41,000,118 $38,469,399 $36,523,936 
This information is preliminary and based on company data available at the time of the presentation.
8

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED
(dollars in thousands, except for share and per share data)Three months endedNine months ended
 September 30, 2022June 30,
2022		September 30, 2021September 30, 2022September 30, 2021
Interest income:
Loans, including fees$315,935 $252,182 $233,857 $795,164 $694,017 
Securities
Taxable18,204 12,725 8,986 41,977 25,073 
Tax-exempt21,408 19,898 15,873 58,752 47,917 
Federal funds sold and other16,217 7,571 2,152 26,864 5,014 
Total interest income371,764 292,376 260,868 922,757 772,021 
Interest expense:
Deposits55,189 18,181 12,139 83,620 43,468 
Securities sold under agreements to repurchase182 82 57 320 185 
FHLB advances and other borrowings10,609 9,539 11,129 28,984 34,730 
Total interest expense65,980 27,802 23,325 112,924 78,383 
Net interest income305,784 264,574 237,543 809,833 693,638 
Provision for credit losses27,493 12,907 3,382 43,120 13,451 
Net interest income after provision for credit losses278,291 251,667 234,161 766,713 680,187 
Noninterest income:
Service charges on deposit accounts10,906 11,616 11,435 33,552 28,648 
Investment services10,780 13,205 9,648 34,676 26,836 
Insurance sales commissions2,928 2,554 2,557 9,518 8,188 
Gains on mortgage loans sold, net1,117 2,150 7,814 7,333 28,180 
Investment gains on sales, net217 — — 156 366 
Trust fees5,706 6,065 5,049 17,744 14,798 
Income from equity method investment41,341 49,465 30,409 124,461 91,430 
Other noninterest income31,810 40,447 37,183 106,363 96,565 
Total noninterest income104,805 125,502 104,095 333,803 295,011 
Noninterest expense:
Salaries and employee benefits129,910 126,611 112,406 378,373 325,958 
Equipment and occupancy27,886 26,921 23,712 80,343 70,253 
Other real estate, net(90)86 (79)101 (749)
Marketing and other business development4,958 4,759 3,325 13,494 8,326 
Postage and supplies2,795 2,320 2,083 7,486 6,004 
Amortization of intangibles1,951 2,051 2,088 5,873 6,461 
Other noninterest expense31,843 33,290 25,316 92,282 73,434 
Total noninterest expense199,253 196,038 168,851 577,952 489,687 
Income before income taxes183,843 181,131 169,405 522,564 485,511 
Income tax expense 35,185 36,004 32,828 99,669 91,716 
Net income148,658 145,127 136,577 422,895 393,795 
Preferred stock dividends(3,798)(3,798)(3,798)(11,394)(11,394)
Net income available to common shareholders$144,860 $141,329 $132,779 $411,501 $382,401 
Per share information:
Basic net income per common share$1.91 $1.87 $1.76 $5.43 $5.07 
Diluted net income per common share$1.91 $1.86 $1.75 $5.42 $5.05 
Weighted average common shares outstanding:
Basic75,761,930 75,751,296 75,494,286 75,723,129 75,449,900 
Diluted75,979,056 75,940,500 75,836,142 75,945,469 75,760,618 
This information is preliminary and based on company data available at the time of the presentation.
9

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(Unaudited)

(dollars and shares in thousands)Preferred
Stock
 Amount		Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comp. Income (Loss), netTotal Shareholders' Equity
 SharesAmounts
Balance at December 31, 2020$217,126 75,850 $75,850 $3,028,063 $1,407,723 $175,849 $4,904,611 
Exercise of employee common stock options & related tax benefits— 32 32 672 — — 704 
Preferred dividends paid ($50.64 per share)— — — — (11,394)— (11,394)
Common dividends paid ($0.54 per share)— — — — (41,633)— (41,633)
Issuance of restricted common shares, net of forfeitures— 194 194 (194)— — — 
Restricted shares withheld for taxes & related tax benefits— (49)(49)(3,697)— — (3,746)
Issuance of common stock pursuant to restricted stock unit (RSU) and performance stock unit (PSU) agreements, net of shares withheld for taxes & related tax benefits— 88 88 (3,878)— — (3,790)
Compensation expense for restricted shares & performance stock units— — — 17,834 — — 17,834 
Net income— — — — 393,795 — 393,795 
Other comprehensive loss— — — — — (64,583)(64,583)
Balance at September 30, 2021$217,126 76,115 $76,115 $3,038,800 $1,748,491 $111,266 $5,191,798 
Balance at December 31, 2021$217,126 76,143 $76,143 $3,045,802 $1,864,350 $107,186 $5,310,607 
Exercise of employee common stock options & related tax benefits— 14 14 264 — — 278 
Preferred dividends paid ($50.64 per share)— — — — (11,394)— (11,394)
Common dividends paid ($0.66 per share)— — — — (51,115)— (51,115)
Issuance of restricted common shares, net of forfeitures— 207 207 (169)— — 38 
Restricted shares withheld for taxes & related tax benefits— (46)(46)(4,657)— — (4,703)
Issuance of common stock pursuant to RSU and PSU agreements, net of shares withheld for taxes & related tax benefits— 95 95 (5,595)— — (5,500)
Compensation expense for restricted shares & performance stock units— — — 30,882 — — 30,882 
Net income— — — — 422,895 — 422,895 
Other comprehensive loss— — — — — (349,876)(349,876)
Balance at September 30, 2022$217,126 76,413 $76,413 $3,066,527 $2,224,736 $(242,690)$5,342,112 


10

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
(dollars in thousands)SeptemberJuneMarchDecemberSeptemberJune
202220222022202120212021
Balance sheet data, at quarter end:
Commercial and industrial loans$9,738,271 9,244,708 8,213,204 7,703,428 7,079,431 6,771,254 
Commercial real estate - owner occupied loans3,426,271 3,243,018 3,124,275 3,048,822 2,954,519 2,817,689 
Commercial real estate - investment loans5,122,127 4,909,598 4,707,761 4,607,048 4,597,736 4,644,551 
Commercial real estate - multifamily and other loans1,042,854 951,998 718,822 614,656 621,471 724,253 
Consumer real estate  - mortgage loans4,271,913 4,047,051 3,813,252 3,680,684 3,540,439 3,335,537 
Construction and land development loans3,548,970 3,386,866 3,277,029 2,903,017 3,096,961 2,791,611 
Consumer and other loans550,565 498,757 487,499 485,489 459,182 440,124 
Paycheck protection program loans10,723 51,100 157,180 371,118 708,722 1,372,916 
Total loans27,711,694 26,333,096 24,499,022 23,414,262 23,058,461 22,897,935 
Allowance for credit losses(288,088)(272,483)(261,618)(263,233)(268,635)(273,747)
Securities6,481,018 6,553,893 6,136,109 6,070,152 5,623,890 5,326,908 
Total assets41,000,118 40,121,292 39,400,378 38,469,399 36,523,936 35,412,309 
Noninterest-bearing deposits10,567,873 11,058,198 10,986,194 10,461,071 9,809,691 8,926,200 
Total deposits33,690,049 32,595,303 32,295,814 31,304,533 29,369,807 28,217,603 
Securities sold under agreements to repurchase190,554 199,585 219,530 152,559 148,240 177,661 
FHLB advances889,248 1,289,059 888,870 888,681 888,493 888,304 
Subordinated debt and other borrowings423,834 423,614 423,319 423,172 542,712 671,994 
Total stockholders' equity5,342,112 5,315,239 5,280,950 5,310,607 5,191,798 5,101,231 
Balance sheet data, quarterly averages:
Total loans$27,021,031 25,397,389 23,848,533 23,225,735 22,986,835 23,179,803 
Securities6,542,026 6,446,774 6,143,664 5,813,636 5,451,232 5,036,786 
Federal funds sold and other2,600,978 2,837,679 4,799,946 4,356,113 3,743,074 3,143,078 
Total earning assets36,164,035 34,681,842 34,792,143 33,395,484 32,181,141 31,359,667 
Total assets40,464,649 38,780,786 38,637,221 37,132,078 35,896,130 35,053,772 
Noninterest-bearing deposits10,926,069 10,803,439 10,478,403 10,240,393 9,247,382 8,500,465 
Total deposits33,108,415 31,484,100 31,538,985 30,034,026 28,739,871 28,013,659 
Securities sold under agreements to repurchase215,646 216,846 179,869 141,781 164,837 173,268 
FHLB advances1,010,865 1,095,531 888,746 888,559 888,369 888,184 
Subordinated debt and other borrowings426,267 427,191 441,755 484,389 586,387 674,162 
Total stockholders' equity5,403,244 5,316,219 5,331,405 5,262,586 5,176,625 5,039,608 
Statement of operations data, for the three months ended:
Interest income$371,764 292,376 258,617 259,193 260,868 259,236 
Interest expense65,980 27,802 19,142 20,430 23,325 26,011 
Net interest income305,784 264,574 239,475 238,763 237,543 233,225 
Provision for credit losses27,493 12,907 2,720 2,675 3,382 2,834 
Net interest income after provision for credit losses278,291 251,667 236,755 236,088 234,161 230,391 
Noninterest income104,805 125,502 103,496 100,723 104,095 98,207 
Noninterest expense199,253 196,038 182,661 170,417 168,851 166,140 
Income before taxes183,843 181,131 157,590 166,394 169,405 162,458 
Income tax expense35,185 36,004 28,480 32,866 32,828 30,668 
Net income148,658 145,127 129,110 133,528 136,577 131,790 
Preferred stock dividends(3,798)(3,798)(3,798)(3,798)(3,798)(3,798)
Net income available to common shareholders$144,860 141,329 125,312 129,730 132,779 127,992 
Profitability and other ratios:
Return on avg. assets (1)
1.42 %1.46 %1.32 %1.39 %1.47 %1.46 %
Return on avg. equity (1)
10.64 %10.66 %9.53 %9.78 %10.18 %10.19 %
 Return on avg. common equity (1)
11.08 %11.12 %9.94 %10.20 %10.62 %10.65 %
Return on avg. tangible common equity (1)
17.40 %17.62 %15.63 %16.13 %16.98 %17.32 %
Common stock dividend payout ratio (15)
12.34 %12.63 %12.94 %10.65 %11.13 %11.73 %
Net interest margin (2)
3.47 %3.17 %2.89 %2.96 %3.03 %3.08 %
Noninterest income to total revenue (3)
25.53 %32.17 %30.18 %29.67 %30.47 %29.63 %
Noninterest income to avg. assets (1)
1.03 %1.30 %1.09 %1.08 %1.15 %1.12 %
Noninterest exp. to avg. assets (1)
1.95 %2.03 %1.92 %1.82 %1.87 %1.90 %
Efficiency ratio (4)
48.53 %50.26 %53.26 %50.20 %49.42 %50.13 %
Avg. loans to avg. deposits
81.61 %80.67 %75.62 %77.33 %79.98 %82.74 %
Securities to total assets
15.81 %16.34 %15.57 %15.78 %15.40 %15.04 %
This information is preliminary and based on company data available at the time of the presentation.

11

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED
(dollars in thousands)Three months endedThree months ended
September 30, 2022September 30, 2021
 Average BalancesInterestRates/ YieldsAverage BalancesInterestRates/ Yields
Interest-earning assets
Loans (1) (2)
$27,021,031 $315,935 4.73 %$22,986,835 $233,857 4.13 %
Securities
Taxable3,436,460 18,204 2.10 %2,868,212 8,986 1.24 %
Tax-exempt (2)
3,105,566 21,408 3.28 %2,583,020 15,873 2.93 %
Interest-bearing due from banks1,491,338 8,666 2.31 %3,088,027 1,181 0.15 %
Resell agreements920,786 5,616 2.42 %500,000 432 0.34 %
Federal funds sold— — — %— — — %
Other188,854 1,935 4.06 %155,047 539 1.38 %
Total interest-earning assets36,164,035 $371,764 4.20 %32,181,141 $260,868 3.32 %
Nonearning assets
Intangible assets1,883,350 1,857,039 
Other nonearning assets2,417,264 1,857,950 
Total assets$40,464,649 $35,896,130 
Interest-bearing liabilities
Interest-bearing deposits:
Interest checking6,763,990 18,008 1.06 %5,591,119 2,453 0.17 %
Savings and money market12,765,435 29,347 0.91 %11,359,595 5,300 0.19 %
Time2,652,921 7,834 1.17 %2,541,775 4,386 0.68 %
Total interest-bearing deposits22,182,346 55,189 0.99 %19,492,489 12,139 0.25 %
Securities sold under agreements to repurchase215,646 182 0.34 %164,837 57 0.14 %
Federal Home Loan Bank advances1,010,865 5,762 2.26 %888,369 4,558 2.04 %
Subordinated debt and other borrowings426,267 4,847 4.51 %586,387 6,571 4.45 %
Total interest-bearing liabilities23,835,124 65,980 1.10 %21,132,082 23,325 0.44 %
Noninterest-bearing deposits10,926,069 — — 9,247,382 — — 
Total deposits and interest-bearing liabilities34,761,193 $65,980 0.75 %30,379,464 $23,325 0.30 %
Other liabilities300,212 340,041 
Stockholders' equity 5,403,244 5,176,625 
Total liabilities and stockholders' equity$40,464,649 $35,896,130 
Net  interest  income 
$305,784 $237,543 
Net interest spread (3)
3.10 %2.88 %
Net interest margin (4)
3.47 %3.03 %
(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 $10.8 million of taxable equivalent income for the three months ended September 30, 2022 compared to $8.5 million for the three months ended September 30, 2021. 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 September 30, 2022 would have been 3.44% compared to a net interest spread of 3.02% for the three months ended September 30, 2021.
(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.  

12

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED
(dollars in thousands)Nine months endedNine months ended
September 30, 2022September 30, 2021
 Average BalancesInterestRates/ YieldsAverage BalancesInterestRates/ Yields
Interest-earning assets
Loans (1) (2)
$25,433,939 $795,164 4.27 %$23,005,416 $694,017 4.11 %
Securities
Taxable3,400,046 41,977 1.65 %2,575,720 25,073 1.30 %
Tax-exempt (2)
2,978,901 58,752 3.18 %2,478,584 47,917 3.11 %
Interest-bearing due from banks2,050,401 12,580 0.82 %2,913,215 2,450 0.11 %
Resell agreements1,175,119 10,674 1.21 %331,502 842 0.34 %
Federal funds sold— — — %13,321 — — %
Other 179,293 3,610 2.69 %157,496 1,722 1.46 %
Total interest-earning assets35,217,699 $922,757 3.61 %31,475,254 $772,021 3.38 %
Nonearning assets
Intangible assets1,876,614 1,859,183 
Other nonearning assets2,206,600 1,873,106 
Total assets$39,300,913 $35,207,543 
Interest-bearing liabilities
Interest-bearing deposits:
Interest checking6,560,068 26,741 0.54 %5,504,133 7,460 0.18 %
Savings and money market12,479,841 43,542 0.47 %11,323,160 17,670 0.21 %
Time2,272,063 13,337 0.78 %2,839,449 18,338 0.86 %
Total interest-bearing deposits21,311,972 83,620 0.52 %19,666,742 43,468 0.30 %
Securities sold under agreements to repurchase204,251 320 0.21 %160,641 185 0.15 %
Federal Home Loan Bank advances998,828 15,467 2.07 %903,569 13,553 2.01 %
Subordinated debt and other borrowings431,681 13,517 4.19 %644,417 21,177 4.39 %
Total interest-bearing liabilities22,946,732 112,924 0.66 %21,375,369 78,383 0.49 %
Noninterest-bearing deposits10,737,610 — — 8,462,129 — — 
Total deposits and interest-bearing liabilities33,684,342 $112,924 0.45 %29,837,498 $78,383 0.35 %
Other liabilities266,018 312,598 
Stockholders' equity 5,350,553 5,057,447 
Total liabilities and stockholders' equity$39,300,913 $35,207,543 
Net  interest  income 
$809,833 $693,638 
Net interest spread (3)
2.95 %2.89 %
Net interest margin (4)
3.18 %3.05 %
(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 $28.8 million of taxable equivalent income for the nine months ended September 30, 2022 compared to $23.7 million for the nine months ended September 30, 2021. 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 September 30, 2022 would have been 3.16% compared to a net interest spread of 3.03% for the nine months ended September 30, 2021.
(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.

13

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
(dollars in thousands)SeptemberJuneMarchDecemberSeptemberJune
202220222022202120212021
Asset quality information and ratios:
Nonperforming assets:
Nonaccrual loans$34,115 15,459 26,616 31,569 46,692 53,105 
ORE and other nonperforming assets (NPAs)
7,787 8,237 8,437 8,537 8,415 9,602 
Total nonperforming assets$41,902 23,696 35,053 40,106 55,107 62,707 
Past due loans over 90 days and still accruing interest$6,757 3,840 1,605 1,607 1,914 1,810 
Accruing troubled debt restructurings (5)
$2,228 2,279 2,317 2,354 2,397 2,428 
Accruing purchase credit deteriorated loans$8,759 9,194 12,661 13,086 12,158 12,400 
Net loan charge-offs$10,983 877 2,958 8,077 9,281 9,968 
Allowance for credit losses to nonaccrual loans844.5 %1,762.6 %982.9 %833.8 %575.3 %515.5 %
As a percentage of total loans:
Past due accruing loans over 30 days0.13 %0.11 %0.11 %0.09 %0.09 %0.07 %
Potential problem loans
0.21 %0.32 %0.41 %0.47 %0.60 %0.74 %
Allowance for credit losses 1.04 %1.03 %1.07 %1.12 %1.17 %1.20 %
Nonperforming assets to total loans, ORE and other NPAs0.15 %0.09 %0.14 %0.17 %0.24 %0.27 %
    Classified asset ratio (Pinnacle Bank) (7)
2.6 %2.9 %3.6 %4.1 %5.6 %6.8 %
Annualized net loan charge-offs to avg. loans (6)
0.16 %0.01 %0.05 %0.14 %0.16 %0.17 %
Interest rates and yields:
Loans4.73 %4.07 %3.94 %4.04 %4.13 %4.11 %
Securities2.66 %2.29 %2.12 %2.08 %2.04 %2.25 %
Total earning assets4.20 %3.49 %3.11 %3.20 %3.32 %3.42 %
Total deposits, including non-interest bearing0.66 %0.23 %0.13 %0.14 %0.17 %0.20 %
Securities sold under agreements to repurchase0.34 %0.15 %0.13 %0.15 %0.14 %0.13 %
FHLB advances2.26 %1.92 %2.04 %2.04 %2.04 %2.03 %
Subordinated debt and other borrowings4.51 %4.04 %4.00 %4.23 %4.45 %4.52 %
Total deposits and interest-bearing liabilities0.75 %0.34 %0.23 %0.26 %0.30 %0.35 %
Capital and other ratios (7):
Pinnacle Financial ratios:
Stockholders' equity to total assets13.0 %13.2 %13.4 %13.8 %14.2 %14.4 %
Common equity Tier one10.0 %10.2 %10.5 %10.9 %10.5 %10.5 %
Tier one risk-based10.7 %10.9 %11.2 %11.7 %11.3 %11.3 %
Total risk-based12.6 %12.9 %13.3 %13.8 %14.0 %14.5 %
Leverage9.7 %9.8 %9.5 %9.7 %9.3 %9.2 %
Tangible common equity to tangible assets8.3 %8.4 %8.5 %8.8 %9.0 %9.0 %
Pinnacle Bank ratios:
Common equity Tier one11.1 %11.0 %11.4 %11.9 %11.7 %11.9 %
Tier one risk-based11.1 %11.0 %11.4 %11.9 %11.7 %11.9 %
Total risk-based11.8 %11.7 %12.1 %12.6 %12.5 %13.1 %
Leverage10.1 %9.9 %9.6 %9.9 %9.7 %9.6 %
Construction and land development loans
as a percentage of total capital (18)
85.4 %87.4 %87.4 %79.1 %89.3 %80.1 %
Non-owner occupied commercial real estate and
multi-family as a percentage of total capital (18)
244.0 %250.2 %243.7 %234.1 %252.4 %248.8 %
This information is preliminary and based on company data available at the time of the presentation.

14

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
(dollars in thousands, except per share data)SeptemberJuneMarchDecemberSeptemberJune
202220222022202120212021
Per share data:
Earnings per common share – basic$1.91 1.87 1.66 1.72 1.76 1.70 
Earnings per common share - basic, excluding non-GAAP adjustments$1.91 1.87 1.66 1.71 1.76 1.69 
Earnings per common share – diluted$1.91 1.86 1.65 1.71 1.75 1.69 
Earnings per common share - diluted, excluding non-GAAP adjustments$1.91 1.86 1.65 1.70 1.75 1.68 
Common dividends per share$0.22 0.22 0.22 0.18 0.18 0.18 
Book value per common share at quarter end (8)
$67.07 66.74 66.30 66.89 65.36 64.19 
Tangible book value per common share at quarter end (8)
$42.44 42.08 41.65 42.55 40.98 39.77 
Revenue per diluted common share$5.40 5.14 4.52 4.47 4.50 4.37 
Revenue per diluted common share, excluding non-GAAP adjustments$5.40 5.14 4.52 4.46 4.50 4.37 
Investor information:
Closing sales price of common stock on last trading day of quarter$81.10 72.31 92.08 95.50 94.08 88.29 
High closing sales price of common stock during quarter$87.66 91.42 110.41 104.72 98.00 92.94 
Low closing sales price of common stock during quarter$68.68 68.56 90.46 90.20 83.84 84.25 
Closing sales price of depositary shares on last trading day of quarter$25.33 25.19 26.72 28.21 28.14 29.13 
High closing sales price of depositary shares during quarter$26.23 26.44 28.53 28.99 29.23 29.13 
Low closing sales price of depositary shares during quarter$24.76 24.75 25.63 27.42 28.00 27.38 
Other information:
Residential mortgage loan sales:
Gross loans sold$181,139 239,736 270,793 352,342 347,664 394,299 
Gross fees (9)
$3,189 6,523 5,700 10,098 11,215 15,552 
Gross fees as a percentage of loans originated1.76 %2.72 %2.11 %2.87 %3.23 %3.94 %
Net gain on residential mortgage loans sold$1,117 2,150 4,066 4,244 7,814 6,700 
Investment gains (losses) on sales of securities, net (14)
$217 — (61)393 — 366 
Brokerage account assets, at quarter end (10)
$7,220,405 6,761,480 7,158,939 7,187,085 6,597,152 6,344,416 
Trust account managed assets, at quarter end$4,162,639 4,207,406 4,499,911 4,720,290 4,155,510 3,640,932 
Core deposits (11)
$30,748,817 30,011,444 30,398,683 29,316,911 27,170,367 25,857,639 
Core deposits to total funding (11)
87.4 %87.0 %89.9 %89.5 %87.8 %86.3 %
Risk-weighted assets$35,281,315 33,366,074 31,170,258 29,349,534 27,945,624 26,819,277 
Number of offices 120 119 119 118 117 116 
Total core deposits per office$256,240 252,197 255,451 248,448 232,225 222,911 
Total assets per full-time equivalent employee$12,875 13,052 13,186 13,541 13,188 13,087 
Annualized revenues per full-time equivalent employee$511.5 509.0 465.5 474.1 489.4 491.3 
Annualized expenses per full-time equivalent employee$248.2 255.8 247.9 238.0 241.9 246.3 
Number of employees (full-time equivalent)3,184.5 3,074.0 2,988.0 2,841.0 2,769.5 2,706.0 
Associate retention rate (12)
93.6 %93.3 %93.1 %93.4 %93.4 %93.3 %
This information is preliminary and based on company data available at the time of the presentation.


15

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)
SeptemberJuneSeptemberSeptemberSeptember
20222022202120222021
Net interest income$305,784264,574237,543809,833693,638
Noninterest income104,805125,502104,095333,803295,011
Total revenues410,589390,076341,6381,143,636988,649
Less: Investment (gains) losses on sales of securities, net(217)——(156)(366)
Total revenues excluding the impact of adjustments noted above$410,372390,076341,6381,143,480988,283
Noninterest expense$199,253196,038168,851577,952489,687
Less: ORE expense (benefit)(90)86(79)101(749)
Noninterest expense excluding the impact of adjustments noted above$199,343195,952168,930577,851490,436
Pre-tax income$183,843181,131169,405522,564485,511
Provision for credit losses27,49312,9073,38243,12013,451
Pre-tax pre-provision net revenue211,336194,038172,787565,684498,962
Adjustments noted above(307)86(79)(55)(1,115)
Adjusted pre-tax pre-provision net revenue (13)
$211,029194,124172,708565,629497,847
Noninterest income$104,805125,502104,095333,803295,011
Less: Adjustments as noted above(217)——(156)(366)
Noninterest income excluding the impact of adjustments noted above$104,588125,502104,095333,647294,645
Efficiency ratio (4)
48.53 %50.26 %49.42 %50.54 %49.53 %
Adjustments as noted above0.05 %(0.03)%0.03 %(0.01)%0.10 %
Efficiency ratio (excluding adjustments noted above) (4)
48.58 %50.23 %49.45 %50.53 %49.63 %
Total average assets$40,464,64938,780,78635,896,13039,300,91335,207,543
Noninterest income to average assets (1)
1.03 %1.30 %1.15 %1.14 %1.12 %
Adjustments as noted above— %— %— %— %— %
Noninterest income (excluding adjustments noted above) to average assets (1)
1.03 %1.30 %1.15 %1.14 %1.12 %
Noninterest expense to average assets (1)
1.95 %2.03 %1.87 %1.97 %1.86 %
Adjustments as noted above— %— %— %— %— %
Noninterest expense (excluding adjustments noted above) to average assets (1)
1.95 %2.03 %1.87 %1.97 %1.86 %
This information is preliminary and based on company data available at the time of the presentation.

16

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)SeptemberJuneMarchDecemberSeptemberJune
202220222022202120212021
Net income available to common shareholders$144,860 141,329 125,312 129,730 132,779 127,992 
Investment (gains) losses on sales of securities, net(217)— 61 (393)— (366)
ORE expense (benefit)(90)86 105 37 (79)(657)
Tax effect on adjustments noted above (17)
80 (22)(43)93 21 267 
Net income available to common shareholders excluding adjustments noted above $144,633 141,393 125,435 129,467 132,721 127,236 
Basic earnings per common share$1.91 1.87 1.66 1.72 1.76 1.70 
Adjustment due to investment (gains) losses on sales of securities, net— — — (0.01)— — 
Adjustment due to ORE expense (benefit)— — — — — (0.01)
Adjustment due to tax effect on adjustments noted above (17)
— — — — — — 
Basic earnings per common share excluding adjustments noted above$1.91 1.87 1.66 1.71 1.76 1.69 
Diluted earnings per common share$1.91 1.86 1.65 1.71 1.75 1.69 
Adjustment due to investment (gains) losses on sales of securities, net— — — (0.01)— — 
Adjustment due to ORE expense (benefit)— — — — — (0.01)
Adjustment due to tax effect on adjustments noted above (17)
— — — — — — 
Diluted earnings per common share excluding the adjustments noted above$1.91 1.86 1.65 1.70 1.75 1.68 
Revenue per diluted common share$5.40 5.14 4.52 4.47 4.50 4.37 
Adjustments as noted above— — — (0.01)— — 
Revenue per diluted common share excluding adjustments noted above$5.40 5.14 4.52 4.46 4.50 4.37 
Book value per common share at quarter end (8)
$67.07 66.74 66.30 66.89 65.36 64.19 
Adjustment due to goodwill, core deposit and other intangible assets(24.63)(24.66)(24.65)(24.34)(24.38)(24.42)
Tangible book value per common share at quarter end (8)
$42.44 42.08 41.65 42.55 40.98 39.77 
Paycheck Protection Program (PPP)
PPP net interest income$755 4,060 10,690 15,131 20,420 24,618 
Income tax expense at statutory rates (17)
197 1,061 2,794 3,955 5,338 6,435 
Earnings attributable to PPP558 2,999 7,896 11,176 15,082 18,183 
Basic earnings per common share attributable to PPP$0.01 0.04 0.10 0.15 0.20 0.24 
Diluted earnings per common share attributable to PPP$0.01 0.04 0.10 0.15 0.20 0.24 
Equity method investment (16)
Fee income from BHG, net of amortization$41,341 49,465 33,655 30,844 30,409 32,071 
Funding cost to support investment3,891 1,998 666 388 379 1,230 
Pre-tax impact of BHG37,450 47,467 32,989 30,456 30,030 30,841 
Income tax expense at statutory rates (17)
9,789 12,408 8,623 7,961 7,850 8,062 
Earnings attributable to BHG$27,661 35,059 24,366 22,495 22,180 22,779 
Basic earnings per common share attributable to BHG$0.37 0.46 0.32 0.30 0.29 0.30 
Diluted earnings per common share attributable to BHG$0.36 0.46 0.32 0.30 0.29 0.30 
This information is preliminary and based on company data available at the time of the presentation.


17

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 30,
20222021
Net income available to common shareholders$411,501 382,401 
Investment (gains) losses on sales of securities, net(156)(366)
ORE expense (benefit)101 (749)
Tax effect on adjustments noted above (17)
14 291 
Net income available to common shareholders excluding adjustments noted above $411,460 381,577 
Basic earnings per common share$5.43 5.07 
Adjustment due to investment (gains) losses on sales of securities, net— — 
Adjustment due to ORE expense (benefit)— (0.01)
Adjustment due to tax effect on adjustments noted above (17)
— — 
Basic earnings per common share excluding adjustments noted above$5.43 5.06 
Diluted earnings per common share5.42 5.05 
Adjustment due to investment (gains) losses on sales of securities, net— — 
Adjustment due to ORE expense (benefit)— (0.01)
Adjustment due to tax effect on adjustments noted above (17)
— — 
Diluted earnings per common share excluding the adjustments noted above$5.42 5.04 
Revenue per diluted common share$15.06 13.05 
Adjustments as noted above— (0.01)
Revenue per diluted common share excluding adjustments noted above$15.06 13.04 
Paycheck Protection Program (PPP)
PPP net interest income15,505 65,951 
Income tax expense at statutory rates (17)
4,052 17,240 
Earnings attributable to PPP$11,453 48,711 
Basic earnings per common share attributable to PPP$0.15 0.65 
Diluted earnings per common share attributable to PPP$0.15 0.64 
Equity method investment (16)
Fee income from BHG, net of amortization$124,461 91,430 
Funding cost to support investment6,555 2,814 
Pre-tax impact of BHG117,906 88,616 
Income tax expense at statutory rates (17)
30,821 23,164 
Earnings attributable to BHG$87,085 65,452 
Basic earnings per common share attributable to BHG$1.15 0.87 
Diluted earnings per common share attributable to BHG$1.15 0.86 
This information is preliminary and based on company data available at the time of the presentation.

18

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)
SeptemberJuneSeptemberSeptemberSeptember
20222022202120222021
Return on average assets (1)
1.42 %1.46 %1.47 %1.40 %1.45 %
Adjustments as noted above— %— %— %— %— %
Return on average assets excluding adjustments noted above (1)
1.42 %1.46 %1.47 %1.40 %1.45 %
Tangible assets:
Total assets$41,000,11840,121,29236,523,936$41,000,11836,523,936
Less:   Goodwill(1,846,466)(1,846,466)(1,819,811)(1,846,466)(1,819,811)
Core deposit and other intangible assets(35,666)(37,617)(35,876)(35,666)(35,876)
Net tangible assets$39,117,98638,237,20934,668,249$39,117,98634,668,249
Tangible common equity:
Total stockholders' equity$5,342,1125,315,2395,191,798$5,342,1125,191,798
Less: Preferred stockholders' equity(217,126)(217,126)(217,126)(217,126)(217,126)
Total common stockholders' equity5,124,9865,098,1134,974,6725,124,9864,974,672
Less: Goodwill(1,846,466)(1,846,466)(1,819,811)(1,846,466)(1,819,811)
Core deposit and other intangible assets(35,666)(37,617)(35,876)(35,666)(35,876)
Net tangible common equity$3,242,8543,214,0303,118,985$3,242,8543,118,985
Ratio of tangible common equity to tangible assets8.29 %8.41 %9.00 %8.29 %9.00 %
Average tangible assets:
Average assets$40,464,64938,780,78635,896,130$39,300,91335,207,543
Less: Average goodwill(1,846,466)(1,851,137)(1,819,811)(1,842,777)(1,819,811)
Average core deposit and other intangible assets(36,884)(31,409)(37,228)(33,837)(39,372)
Net average tangible assets$38,581,29936,898,24034,039,091$37,424,29933,348,360
Return on average assets (1)
1.42 %1.46 %1.47 %1.40 %1.45 %
Adjustment due to goodwill, core deposit and other intangible assets0.07 %0.08 %0.08 %0.07 %0.08 %
Return on average tangible assets (1)
1.49 %1.54 %1.55 %1.47 %1.53 %
Adjustments as noted above— %— %— %— %— %
Return on average tangible assets excluding adjustments noted above (1)
1.49 %1.54 %1.55 %1.47 %1.53 %
Average tangible common equity:
Average stockholders' equity$5,403,2445,316,2195,176,625$5,350,5535,057,447
Less: Average preferred equity(217,126)(217,126)(217,126)(217,126)(217,126)
Average common equity5,186,1185,099,0934,959,4995,133,4274,840,321
Less:   Average goodwill(1,846,466)(1,851,137)(1,819,811)(1,842,777)(1,819,811)
Average core deposit and other intangible assets(36,884)(31,409)(37,228)(33,837)(39,372)
Net average tangible common equity$3,302,7683,216,5473,102,460$3,256,8132,981,138
Return on average equity (1)
10.64 %10.66 %10.18 %10.28 %10.11 %
Adjustment due to average preferred stockholders' equity0.44 %0.46 %0.44 %0.44 %0.45 %
Return on average common equity (1)
11.08 %11.12 %10.62 %10.72 %10.56 %
Adjustment due to goodwill, core deposit and other intangible assets6.32 %6.50 %6.36 %6.17 %6.59 %
Return on average tangible common equity (1)
17.40 %17.62 %16.98 %16.89 %17.15 %
Adjustments as noted above(0.03)%0.01 %(0.01)%— %(0.04)%
Return on average tangible common equity excluding adjustments noted above (1)
17.37 %17.63 %16.97 %16.89 %17.11 %
Allowance for credit losses on loans as a percent of total loans 1.04 %1.03 %1.17 %1.04 %1.17 %
Impact of excluding PPP loans from total loans— %0.01 %0.03 %— %0.03 %
Allowance as adjusted for the above exclusion of PPP loans from total loans1.04 %1.04 %1.20 %1.04 %1.20 %
This information is preliminary and based on company data available at the time of the presentation.

19

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. 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.
7. 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.
8. 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.
9. Amounts are included in the statement of operations in "Gains on mortgage loans sold, net", net of commissions paid on such amounts.
10. At fair value, based on information obtained from Pinnacle's third party broker/dealer for non-FDIC insured financial products and services.
11. 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.
12. 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.
13. Adjusted pre-tax, pre-provision net revenue excludes the impact of ORE expenses and income and investment gains and losses on sales of securities.
14. 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.
15. 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.
16. 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.
17. Tax effect calculated using the blended statutory rate of 26.14 percent.
18. Calculated using the same guidelines as are used in the Federal Financial Institutions Examination Council's Uniform Bank Performance Report.

20