EX-99.1 2 a4q21pnfpearningsrelease.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 $1.71, ROAA OF 1.39% AND ROTCE OF 16.13% FOR 4Q2021
Year-over-year loan growth of 4.4%; excluding impact of PPP, loan growth was 11.7%

NASHVILLE, TN, Jan. 18, 2022 - Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported net income per diluted common share of $1.71 for the quarter ended Dec. 31, 2021, compared to net income per diluted common share of $1.42 for the quarter ended Dec. 31, 2020, an increase of approximately 20.4 percent. Net income per diluted common share was $6.75 for the year ended Dec. 31, 2021, compared to net income per diluted common share of $4.03 for the year ended Dec. 31, 2020, an increase of 67.5 percent.
Three Months EndedYear Ended
December 31, 2021September 30, 2021December 31, 2020December 31, 2021December 31, 2020
Diluted earnings per common share$1.71 $1.75 $1.42 $6.75 $4.03 
Adjustments:
Investment (gains) losses on sales of securities, net(0.01)— — (0.01)(0.01)
Other real estate (ORE) expense— — 0.02 (0.01)0.11 
FHLB restructuring charges— — 0.14 — 0.20 
Hedge termination charges — — 0.06 — 0.06 
Tax effect of above noted adjustments— — (0.06)— (0.09)
Diluted earnings per common share after adjustments$1.70 $1.75 $1.58 $6.73 $4.30 
After considering the adjustments noted in the table above for the three months ended Dec. 31, 2021 and 2020, net income per diluted common share was $1.70 for the three months ended Dec. 31, 2021, compared to $1.58 for the three months ended Dec. 31, 2020, a year-over-year increase of 7.6 percent. Net income per diluted common share adjusted for the items noted in the table above was $6.73 in 2021, compared to $4.30 in 2020, a year-over-year increase of 56.5 percent.

"Despite a volatile and challenging operating environment, 2021 afforded us extraordinary opportunities for outsized growth," said M. Terry Turner, Pinnacle's president and chief executive officer. "Adjusted earnings increased 56.5 percent over last year, our pre-tax and pre-provision revenues were up 16.1 percent year-over-year, and excluding the impact of PPP, we achieved loan growth of nearly 12 percent. Importantly, to bolster our future growth prospects, during 2021 we announced expansion into several new markets, including the Washington D.C. area, and we added 119 revenue producers to our ranks. As we enter 2022, we believe we are well positioned to continue to execute on our rapid growth model."

BALANCE SHEET GROWTH:
Total assets at Dec. 31, 2021 were $38.5 billion, an increase of approximately $3.5 billion from Dec. 31, 2020, reflecting a year-over-year increase of 10.1 percent. A further analysis of select balance sheet trends follows:
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Balances at Balances at
December 31, 2021September 30, 2021Linked-Quarter
Annualized
% Change		December 31, 2020Year-over-Year
% Change
Loans$23,414,262 $23,058,461 6.2 %$22,424,501 4.4 %
Less PPP loans371,118708,722(190.5)%1,798,869(79.4)%
Loans excluding PPP loans23,043,14422,349,73912.4 %20,625,63211.7 %
Securities and other interest-earning assets11,046,8959,538,82463.2 %8,492,21430.1 %
Total interest-earning assets excluding PPP loans34,090,03931,888,56327.6 %29,117,84617.1 %
Noninterest-bearing deposits(1)
10,461,0719,809,69126.6 %7,392,32541.5 %
Interest-bearing core deposits(2)
18,855,84017,360,67634.4 %16,118,55817.0 %
Noncore funding3,452,0343,778,885(34.6)%6,081,358(43.2)%
Total funding $32,768,945 $30,949,252 23.5 %$29,592,241 10.7 %
(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 funding consists of time deposits greater than $250,000, securities sold under agreements to repurchase, public funds, brokered deposits, FHLB advances and subordinated debt.

"During the fourth quarter, loan growth approximated 6.2 percent annualized when compared to balances at Sept. 30, 2021. After excluding the impact of PPP, loans increased at an annualized rate of 12.4 percent," Turner said. "Replacing PPP revenue is primarily a function of new loan growth in 2022. In that regard, we remain optimistic and believe we have the infrastructure in place, as well as the momentum, to deliver loan growth of 10 to 15 percent in 2022."

PRE-TAX, PRE-PROVISION REVENUES (PPNR):
Pre-tax, pre-provision net revenues (PPNR) for the quarter ended Dec. 31, 2021 were $169.1 million, a increase of $25.9 million from the $143.1 million recognized in the quarter ended Dec. 31, 2020, an annualized growth rate of 72.5 percent.
Three months ended Year ended
December 31, December 31,
20212020Annualized % change20212020% change
Revenues:
Net interest income$238,763 $220,985 32.2 %$932,401 $821,788 13.5 %
Noninterest income100,723 83,444 82.8 %395,734 317,840 24.5 %
Total revenues339,486 304,429 46.1 %1,328,135 1,139,628 16.5 %
Noninterest expense170,417 161,305 22.6 %660,104 564,455 16.9 %
Pre-tax, pre-provision net revenue (PPNR)$169,069 $143,124 72.5 %$668,031 $575,173 16.1 %
Adjustments:
Investment (gains) losses on sales of securities, net(393)— NM(759)(986)NM
FHLB restructuring charges— 10,307 NM— 15,168 NM
Hedge termination charges— 4,673 NM— 4,673 NM
ORE expense (benefit)37 1,457 NM(712)8,555 NM
Adjusted PPNR$168,713 $159,561 22.9 %$666,560 $602,583 10.6 %

•Revenue per fully diluted common share was $4.47 for the three months ended Dec. 31, 2021, compared to $4.50 for the third quarter of 2021 and $4.03 for the fourth quarter of 2020, a 10.9 percent year-over-year growth rate. Revenue per fully diluted share was $17.49 for the year ended Dec. 31, 2021, compared to $15.06 for the year ended Dec. 31, 2020, a growth rate of 16.1 percent.
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•Net interest income for the quarter ended Dec. 31, 2021 was $238.8 million, compared to $237.5 million for the third quarter of 2021 and $221.0 million for the fourth quarter of 2020, a year-over-year growth rate of 8.0 percent. Net interest margin was 2.96 percent for the fourth quarter of 2021, compared to 3.03 percent for the third quarter of 2021 and 2.97 percent for the fourth quarter of 2020.
◦Revenues from PPP loans approximated $15.5 million in the fourth quarter of 2021, compared to $21.2 million in the third quarter of 2021 and $24.6 million in the fourth quarter of 2020. For the year ended Dec. 31, 2021, revenues from PPP loans approximated $85.9 million, compared to $52.3 million for the year ended Dec. 31, 2020.
◦Impacting the firm’s net interest margin in the third and fourth quarters of 2021 and the fourth 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 third and fourth quarter 2021 net interest margin was negatively impacted by approximately 17 and 25 basis points, respectively, as a result of PPP loans and additional liquidity, compared to approximately 30 basis points for the fourth quarter 2020.
◦Included in net interest income for the fourth quarter of 2021 was $2.2 million of discount accretion associated with fair value adjustments, compared to $2.8 million of discount accretion recognized in the third quarter of 2021 and $4.4 million in the fourth quarter of 2020. The firm's net interest margin was positively impacted because of fair value adjustment discount accretion by approximately 3 basis points for each of the third and fourth quarters of 2021 and by 6 basis points for the fourth quarter of 2020. There remains $8.6 million of purchase accounting discount accretion as of Dec. 31, 2021.
•Noninterest income for the quarter ended Dec. 31, 2021 was $100.7 million, compared to $104.1 million for the quarter ended Sept. 30, 2021, a linked-quarter annualized decrease of 13.0 percent. Compared to $83.4 million for the fourth quarter of 2020, noninterest income grew 20.7 percent.
◦Wealth management revenues, which include investment, trust and insurance services, were $19.3 million for the fourth quarter of 2021, compared to $17.3 million for the third quarter of 2021, a linked-quarter annualized increase of 48.2 percent. Compared to $14.3 million for the fourth quarter of 2020, wealth management revenues were up 35.4 percent.
◦Income from the firm's investment in BHG was $30.8 million for the quarter ended Dec. 31, 2021, up from $30.4 million for the quarter ended Sept. 30, 2021 and $24.3 million for the quarter ended Dec. 31, 2020.
◦Other noninterest income was $33.2 million for the quarter ended Dec. 31, 2021, compared to $37.2 million for the quarter ended Sept. 30, 2021 and $24.0 million for the quarter ended Dec. 31, 2020, a linked-quarter annualized decrease of 42.4 percent and year-over-year growth of 38.5 percent, respectively. Contributing to the linked-quarter decline was $4.1 million of income from other equity investments during the three months ended Dec. 31, 2021, compared to $8.6 million during the three months ended Sept. 30, 2021 and $1.1 million for the three months ended Dec. 31, 2020. Income from other equity investments for the year ended Dec. 31, 2021 was $23.1 million compared to $1.1 million for the previous year.
•Noninterest expense for the quarter ended Dec. 31, 2021 was $170.4 million, compared to $168.9 million in the third quarter of 2021 and $161.3 million in the fourth quarter of 2020, reflecting a year-over-year increase of 5.6 percent.
◦Salaries and employee benefits were $110.0 million in the fourth quarter of 2021, compared to $112.4 million in the third quarter of 2021 and $90.0 million in the fourth quarter of 2020, reflecting a year-over-year increase of 22.3 percent.
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◦Noninterest expense categories, other than salaries and employee benefits, were $60.4 million in the fourth quarter of 2021, compared to $56.4 million in the third quarter of 2021 and $71.3 million in the fourth quarter of 2020, reflecting a year-over-year decrease of 15.3 percent.

“We continue our PPNR focus and are pleased with our PPNR results in 2021,” said Harold R. Carpenter, Pinnacle’s chief financial officer. “As we enter 2022, we believe with the opportunities we have in our new markets, as well as the ongoing recruiting success we are experiencing in our existing markets, we can achieve continued PPNR growth in 2022. That said, PPNR growth in 2022 will be challenging, given our great success with the PPP program in 2020 and 2021, but our goal remains to be a top-quartile performer regardless of the operating environment.
“Our nearly 12 percent growth in loans, excluding PPP, significantly impacted our revenue results for 2021. Strong discipline on deposit pricing, another big year from both BHG and wealth management as well as success with our other equity investments all contributed to an outstanding year for us. Furthermore, we believe our ability to manage our expense base was evident in 2021. Even though our overall headcount increased by 8.0 percent in 2021 and our corporate incentive costs increased from $52.6 million in 2020 to $109.1 million in 2021, we were able to maintain an efficiency ratio of 49.70 percent in 2021 compared to 49.53 percent in 2020."

PROFITABILITY:
Three months endedYear ended
December 31, 2021September 30, 2021December 31, 2020December 31, 2021December 31, 2020
Net interest margin2.96 %3.03 %2.97 %3.02 %2.97 %
Efficiency ratio50.20 %49.42 %52.99 %49.70 %49.53 %
Return on average assets1.39 %1.47 %1.24 %1.43 %0.94 %
Return on average tangible common equity (TCE)16.13 %16.98 %15.37 %16.88 %11.53 %
Book value per common share$66.89 $65.36 $61.80 $66.89 $61.80 
Tangible book value per common share$42.55 $40.98 $37.25 $42.55 $37.25 

“We remain pleased with our profitability metrics and are optimistic we will be able to continue to successfully execute on our strategy that targets top-quartile peer performance in the years to come,” Carpenter said. “We are very pleased to report a 14.2 percent increase in tangible book value per share between Dec. 31, 2020 and Dec. 31, 2021. That said, while we will maintain our focus on growing earnings, PPNR and tangible book value per share, we will be mindful of pricing discipline as we grow our business in what is shaping up to be a rising rate environment in 2022. Recent changes in the interest rate outlook for 2022, our targeted low- to mid-teen percentage increase in loans for next year, our recent expansion into new markets and our belief that we hope to see incremental deployment of excess liquidity give us reason to be optimistic for the coming year.”

MAINTAINING A STRONG BALANCE SHEET:
•Provision for credit losses was $2.7 million in the fourth quarter of 2021, compared to $3.4 million in the third quarter of 2021 and $9.2 million in the fourth quarter of 2020. Net charge-offs were $8.1 million for the quarter ended Dec. 31, 2021, compared to $9.3 million for the quarter ended Sept. 30, 2021 and $10.8 million for the quarter ended Dec. 31, 2020.
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•Nonperforming assets were $40.1 million at Dec. 31, 2021, compared to $55.1 million at Sept. 30, 2021 and $86.2 million at Dec. 31, 2020. The ratio of the allowance for credit losses to nonperforming loans at Dec. 31, 2021 was 833.8 percent, compared to 575.3 percent at Sept. 30, 2021 and 386.1 percent at Dec. 31, 2020.
•Classified assets were $151.3 million at Dec. 31, 2021, compared to $196.3 million at Sept. 30, 2021 and $262.1 million at Dec. 31, 2020.
Three months ended or as of
December 31, 2021September 30, 2021December 31, 2020
Annualized net loan charge-offs to avg. loans(1)
0.14 %0.16 %0.19 %
Nonperforming assets to total loans, ORE and other nonperforming assets (NPAs)0.17 %0.24 %0.38 %
Classified asset ratio (Pinnacle Bank) (2)
4.10 %5.60 %8.10 %
Allowance for credit losses (ACL) to total loans 1.12 %1.17 %1.27 %
ACL to total loans, excluding PPP1.14 %1.20 %1.38 %
(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 asset - Classified assets as a percentage of Tier 1 capital plus allowance for credit losses.

“Our credit performance has been strong for many years, and we believe it should continue as we enter 2022,” Carpenter said. “Our relationship managers and credit officers have done a remarkable job navigating the pandemic and its impact on our borrowers. During 2021, we reduced our allowance for credit losses to total loans (excluding PPP loans) from 1.38 percent at year end 2020 to 1.14 percent at Dec. 31, 2021, a decrease of 24 basis points. Given our anticipated credit performance and the forecasted business climate for 2022, we believe that continued reductions in this ratio are possible at least through the first half of 2022.”

BOARD OF DIRECTORS DECLARES DIVIDENDS AND AUTHORIZES SHARE REPURCHASE PLAN
On Jan. 18, 2022, Pinnacle Financial's Board of Directors approved a quarterly cash dividend of $0.22 per common share to be paid on Feb. 25, 2022 to common shareholders of record as of the close of business on Feb. 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 March 1, 2022 to shareholders of record at the close of business on Feb. 14, 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.
The firm also announced that its Board of Directors has authorized a new share repurchase program for up to $125 million of the Company’s common stock to commence upon expiration of its existing share repurchase program that is set to expire on March 31, 2022. Repurchases of the Company’s common stock will be made in accordance with applicable laws and may be made at management’s discretion from time to time in the open market, through privately negotiated transactions or otherwise. The board authorized the repurchase program to remain in effect through March 31, 2023, unless the entire repurchase amount has been acquired before that date.
The share repurchase program may be extended, modified, amended, suspended or discontinued at any time at the Company’s discretion and does not commit the Company to repurchase shares of its common stock. The actual timing, number and value of the shares to be purchased under the program will be determined by the Company at its discretion and will depend on a number of factors, including the performance of the Company’s stock price, the Company’s ongoing capital planning considerations, general market and other conditions, applicable legal requirements and compliance with the terms of the Company’s outstanding indebtedness.
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WEBCAST AND CONFERENCE CALL INFORMATION
Pinnacle will host a webcast and conference call at 8:30 a.m. CT on Jan. 19, 2022, to discuss fourth 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® 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 $38.5 billion in assets as of Dec. 31, 2021. 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 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 booster shots 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) 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; (vi) 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; (vii) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (viii) effectiveness of Pinnacle Financial's asset management activities in improving, resolving or liquidating lower-quality assets; (ix) 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; (x) 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; (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) fluctuations in the valuations of Pinnacle Financial's equity investments and the ultimate success of such investments; (xxix) the availability of and access to capital; (xxx) 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 (xxxi) 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
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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.

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PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS – UNAUDITED
 (dollars in thousands, except for share and per share data)December 31, 2021September 30, 2021December 31, 2020
ASSETS
Cash and noninterest-bearing due from banks$188,287 $155,965 $203,296 
Restricted cash82,505 104,157 223,788 
Interest-bearing due from banks3,830,747 3,206,383 3,522,224 
Federal funds sold and other— — 12,141 
Cash and cash equivalents4,101,539 3,466,505 3,961,449 
Securities purchased with agreement to resell1,000,000 500,000 — 
Securities available-for-sale, at fair value4,914,194 4,634,653 3,586,681 
Securities held-to-maturity (fair value of $1.2 billion, $1.0 billion and $1.1 billion, net of allowance for credit losses of $161,000, $161,000 and $191,000 at Dec. 31, 2021, Sept. 30, 2021 and Dec. 31, 2020, respectively)1,155,958 989,237 1,028,359 
Consumer loans held-for-sale45,806 55,273 87,821 
Commercial loans held-for-sale17,685 49,121 31,200 
Loans23,414,262 23,058,461 22,424,501 
Less allowance for credit losses(263,233)(268,635)(285,050)
Loans, net23,151,029 22,789,826 22,139,451 
Premises and equipment, net288,182 288,833 290,001 
Equity method investment360,833 333,764 308,556 
Accrued interest receivable98,813 89,137 104,078 
Goodwill1,819,811 1,819,811 1,819,811 
Core deposits and other intangible assets33,819 35,876 42,336 
Other real estate owned8,537 8,415 12,360 
Other assets1,473,193 1,463,485 1,520,757 
Total assets$38,469,399 $36,523,936 $34,932,860 
LIABILITIES AND STOCKHOLDERS' EQUITY 
Deposits: 
Noninterest-bearing$10,461,071 $9,809,691 $7,392,325 
Interest-bearing6,530,015 5,767,286 5,689,095 
Savings and money market accounts12,179,663 11,381,033 11,099,523 
Time2,133,784 2,411,797 3,524,632 
Total deposits31,304,533 29,369,807 27,705,575 
Securities sold under agreements to repurchase152,559 148,240 128,164 
Federal Home Loan Bank advances888,681 888,493 1,087,927 
Subordinated debt and other borrowings423,172 542,712 670,575 
Accrued interest payable12,504 11,838 24,934 
Other liabilities377,343 371,048 411,074 
Total liabilities33,158,792 31,332,138 30,028,249 
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 Dec. 31, 2021, Sept. 30, 2021 and Dec. 31, 2020, respectively217,126 217,126 217,126 
Common stock, par value $1.00; 180.0 million shares authorized; 76.1 million, 76.1 million and 75.9 million shares issued and outstanding at Dec. 31, 2021, Sept. 30, 2021 and Dec. 31, 2020, respectively76,143 76,115 75,850 
Additional paid-in capital3,045,802 3,038,800 3,028,063 
Retained earnings1,864,350 1,748,491 1,407,723 
Accumulated other comprehensive income, net of taxes107,186 111,266 175,849 
Total stockholders' equity5,310,607 5,191,798 4,904,611 
Total liabilities and stockholders' equity$38,469,399 $36,523,936 $34,932,860 
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 INCOME – UNAUDITED
(dollars in thousands, except for share and per share data)Three months endedYear ended
 December 31, 2021September 30, 2021December 31, 2020December 31, 2021December 31, 2020
Interest income:
Loans, including fees$230,026 $233,857 $232,561 $924,043 $919,744 
Securities
Taxable9,696 8,986 7,530 34,769 35,663 
Tax-exempt16,931 15,873 15,446 64,848 58,867 
Federal funds sold and other2,540 2,152 1,510 7,554 6,768 
Total interest income259,193 260,868 257,047 1,031,214 1,021,042 
Interest expense:
Deposits10,648 12,139 22,721 54,116 135,547 
Securities sold under agreements to repurchase54 57 64 239 350 
FHLB advances and other borrowings9,728 11,129 13,277 44,458 63,357 
Total interest expense20,430 23,325 36,062 98,813 199,254 
Net interest income238,763 237,543 220,985 932,401 821,788 
Provision for credit losses2,675 3,382 9,180 16,126 203,815 
Net interest income after provision for credit losses236,088 234,161 211,805 916,275 617,973 
Noninterest income:
Service charges on deposit accounts12,663 11,435 8,486 41,311 34,282 
Investment services11,081 9,648 7,593 37,917 29,537 
Insurance sales commissions2,328 2,557 2,300 10,516 10,055 
Gains on mortgage loans sold, net4,244 7,814 12,387 32,424 60,042 
Investment gains on sales, net393 — — 759 986 
Trust fees5,926 5,049 4,382 20,724 16,496 
Income from equity method investment30,844 30,409 24,294 122,274 83,539 
Other noninterest income33,244 37,183 24,002 129,809 82,903 
Total noninterest income100,723 104,095 83,444 395,734 317,840 
Noninterest expense:
Salaries and employee benefits110,048 112,406 90,013 436,006 334,483 
Equipment and occupancy24,997 23,712 23,849 95,250 88,475 
Other real estate, net37 (79)1,457 (712)8,555 
Marketing and other business development4,562 3,325 2,979 12,888 10,693 
Postage and supplies2,191 2,083 1,998 8,195 7,819 
Amortization of intangibles2,057 2,088 2,377 8,518 9,793 
Other noninterest expense26,525 25,316 38,632 99,959 104,637 
Total noninterest expense170,417 168,851 161,305 660,104 564,455 
Income before income taxes166,394 169,405 133,944 651,905 371,358 
Income tax expense 32,866 32,828 23,068 124,582 59,037 
Net income133,528 136,577 110,876 527,323 312,321 
Preferred stock dividends(3,798)(3,798)(3,798)(15,192)(7,596)
Net income available to common shareholders$129,730 $132,779 $107,078 $512,131 $304,725 
Per share information:
Basic net income per common share$1.72 $1.76 $1.42 $6.79 $4.04 
Diluted net income per common share$1.71 $1.75 $1.42 $6.75 $4.03 
Weighted average common shares outstanding:
Basic75,523,052 75,494,286 75,253,862 75,468,339 75,376,489 
Diluted76,024,700 75,836,142 75,583,986 75,927,147 75,654,385 
This information is preliminary and based on company data available at the time of the presentation.
10

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
(dollars in thousands)December SeptemberJuneMarchDecemberSeptember
202120212021202120202020
Balance sheet data, at quarter end:
Commercial and industrial loans$7,703,428 7,079,431 6,771,254 6,355,119 6,239,588 6,144,949 
Commercial real estate - owner occupied loans3,048,822 2,954,519 2,817,689 2,869,785 2,802,227 2,748,075 
Commercial real estate - investment loans4,607,048 4,597,736 4,644,551 4,782,712 4,565,040 4,648,457 
Commercial real estate - multifamily and other loans614,656 621,471 724,253 790,469 638,344 571,995 
Consumer real estate  - mortgage loans3,680,684 3,540,439 3,335,537 3,086,916 3,099,172 3,041,019 
Construction and land development loans2,903,017 3,096,961 2,791,611 2,568,969 2,901,746 2,728,439 
Consumer and other loans485,489 459,182 440,124 411,322 379,515 343,461 
Paycheck protection program loans371,118 708,722 1,372,916 2,221,409 1,798,869 2,251,014 
Total loans23,414,262 23,058,461 22,897,935 23,086,701 22,424,501 22,477,409 
Allowance for credit losses(263,233)(268,635)(273,747)(280,881)(285,050)(288,645)
Securities6,070,152 5,623,890 5,326,908 4,691,364 4,615,040 4,503,072 
Total assets38,469,399 36,523,936 35,412,309 35,299,705 34,932,860 33,824,931 
Noninterest-bearing deposits10,461,071 9,809,691 8,926,200 8,103,943 7,392,325 7,050,670 
Total deposits31,304,533 29,369,807 28,217,603 28,292,940 27,705,575 26,543,956 
Securities sold under agreements to repurchase152,559 148,240 177,661 172,117 128,164 127,059 
FHLB advances888,681 888,493 888,304 888,115 1,087,927 1,287,738 
Subordinated debt and other borrowings423,172 542,712 671,994 671,002 670,575 670,273 
Total stockholders' equity5,310,607 5,191,798 5,101,231 4,959,524 4,904,611 4,787,308 
Balance sheet data, quarterly averages:
Total loans$23,225,735 22,986,835 23,179,803 22,848,086 22,524,683 22,493,192 
Securities5,813,636 5,451,232 5,036,786 4,666,269 4,567,872 4,420,280 
Federal funds sold and other4,356,113 3,743,074 3,143,078 3,356,199 3,621,623 3,279,248 
Total earning assets33,395,484 32,181,141 31,359,667 30,870,554 30,714,178 30,192,720 
Total assets37,132,078 35,896,130 35,053,772 34,659,132 34,436,765 33,838,716 
Noninterest-bearing deposits10,240,393 9,247,382 8,500,465 7,620,665 7,322,393 6,989,439 
Total deposits30,034,026 28,739,871 28,013,659 27,620,784 27,193,256 26,352,823 
Securities sold under agreements to repurchase141,781 164,837 173,268 143,586 121,331 147,211 
FHLB advances888,559 888,369 888,184 934,662 1,250,848 1,515,879 
Subordinated debt and other borrowings484,389 586,387 674,162 673,662 673,419 715,138 
Total stockholders' equity5,262,586 5,176,625 5,039,608 4,953,656 4,852,373 4,765,864 
Statement of operations data, for the three months ended:
Interest income$259,193 260,868 259,236 251,917 257,047 249,188 
Interest expense20,430 23,325 26,011 29,047 36,062 42,594 
Net interest income238,763 237,543 233,225 222,870 220,985 206,594 
Provision for credit losses2,675 3,382 2,834 7,235 9,180 16,758 
Net interest income after provision for credit losses236,088 234,161 230,391 215,635 211,805 189,836 
Noninterest income100,723 104,095 98,207 92,709 83,444 91,065 
Noninterest expense170,417 168,851 166,140 154,696 161,305 143,852 
Income before taxes166,394 169,405 162,458 153,648 133,944 137,049 
Income tax expense32,866 32,828 30,668 28,220 23,068 26,404 
Net income133,528 136,577 131,790 125,428 110,876 110,645 
Preferred stock dividends(3,798)(3,798)(3,798)(3,798)(3,798)(3,798)
Net income available to common shareholders$129,730 132,779 127,992 121,630 107,078 106,847 
Profitability and other ratios:
Return on avg. assets (1)
1.39 %1.47 %1.46 %1.42 %1.24 %1.26 %
Return on avg. equity (1)
9.78 %10.18 %10.19 %9.96 %8.78 %8.92 %
 Return on avg. common equity (1)
10.20 %10.62 %10.65 %10.41 %9.19 %9.35 %
Return on avg. tangible common equity (1)
16.13 %16.98 %17.32 %17.16 %15.37 %15.85 %
Common stock dividend payout ratio (16)
10.65 %11.13 %11.73 %13.69 %15.84 %16.49 %
Net interest margin (2)
2.96 %3.03 %3.08 %3.02 %2.97 %2.82 %
Noninterest income to total revenue (3)
29.67 %30.47 %29.63 %29.38 %27.41 %30.59 %
Noninterest income to avg. assets (1)
1.08 %1.15 %1.12 %1.08 %0.96 %1.07 %
Noninterest exp. to avg. assets (1)
1.82 %1.87 %1.90 %1.81 %1.86 %1.69 %
Efficiency ratio (4)
50.20 %49.42 %50.13 %49.02 %52.99 %48.33 %
Avg. loans to avg. deposits
77.33 %79.98 %82.74 %82.72 %82.83 %85.35 %
Securities to total assets
15.78 %15.40 %15.04 %13.29 %13.21 %13.31 %
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
December 31, 2021December 31, 2020
 Average BalancesInterestRates/ YieldsAverage BalancesInterestRates/ Yields
Interest-earning assets
Loans (1) (2)
$23,225,735 $230,026 4.04 %$22,524,683 $232,561 4.20 %
Securities
Taxable3,112,605 9,696 1.24 %2,235,953 7,530 1.34 %
Tax-exempt (2)
2,701,031 16,931 3.04 %2,331,919 15,446 3.16 %
Federal funds sold and other4,356,113 2,540 0.23 %3,621,623 1,510 0.17 %
Total interest-earning assets33,395,484 $259,193 3.20 %30,714,178 $257,047 3.44 %
Nonearning assets
Intangible assets1,854,963 1,863,696 
Other nonearning assets1,881,631 1,858,891 
Total assets$37,132,078 $34,436,765 
Interest-bearing liabilities
Interest-bearing deposits:
Interest checking5,799,700 2,427 0.17 %5,232,181 3,086 0.23 %
Savings and money market11,777,899 5,153 0.17 %10,882,070 7,651 0.28 %
Time2,216,034 3,068 0.55 %3,756,612 11,984 1.27 %
Total interest-bearing deposits19,793,633 10,648 0.21 %19,870,863 22,721 0.45 %
Securities sold under agreements to repurchase141,781 54 0.15 %121,331 64 0.21 %
Federal Home Loan Bank advances888,559 4,558 2.04 %1,250,848 6,282 2.00 %
Subordinated debt and other borrowings484,389 5,170 4.23 %673,419 6,995 4.13 %
Total interest-bearing liabilities21,308,362 20,430 0.38 %21,916,461 36,062 0.65 %
Noninterest-bearing deposits10,240,393 — — 7,322,393 — — 
Total deposits and interest-bearing liabilities31,548,755 $20,430 0.26 %29,238,854 $36,062 0.49 %
Other liabilities320,737 345,538 
Stockholders' equity 5,262,586 4,852,373 
Total liabilities and stockholders' equity$37,132,078 $34,436,765 
Net  interest  income 
$238,763 $220,985 
Net interest spread (3)
2.82 %2.78 %
Net interest margin (4)
2.96 %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 $10.1 million of taxable equivalent income for the three months ended Dec. 31, 2021 compared to $8.4 million for the three months ended Dec. 31, 2020. The tax-exempt benefit has been reduced by the projected impact of tax-exempt income that will be disallowed pursuant to IRS Regulations as of and for the then current period presented.
(3) Yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. The net interest spread calculation excludes the impact of demand deposits. Had the impact of demand deposits been included, the net interest spread for the three months ended Dec. 31, 2021 would have been 2.94% compared to a net interest spread of 2.95% for the three months ended Dec. 31, 2020.
(4) Net interest margin is the result of annualized net interest income calculated on a tax equivalent basis divided by average interest-earning assets for the period.
This information is preliminary and based on company data available at the time of the presentation.  

12

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED
(dollars in thousands)Year endedYear ended
December 31, 2021December 31, 2020
 Average BalancesInterestRates/ YieldsAverage BalancesInterestRates/ Yields
Interest-earning assets
Loans (1) (2)
$23,060,949 $924,043 4.09 %$21,824,841 $919,744 4.30 %
Securities
Taxable2,711,044 34,769 1.28 %2,136,437 35,663 1.67 %
Tax-exempt (2)
2,534,653 64,848 3.09 %2,114,277 58,867 3.35 %
Federal funds sold and other3,652,612 7,554 0.21 %2,586,298 6,768 0.26 %
Total interest-earning assets31,959,258 $1,031,214 3.33 %28,661,853 $1,021,042 3.67 %
Nonearning assets
Intangible assets1,858,119 1,867,007 
Other nonearning assets1,875,255 1,805,677 
Total assets$35,692,632 $32,334,537 
Interest-bearing liabilities
Interest-bearing deposits:
Interest checking5,578,632 9,887 0.18 %4,602,683 19,542 0.42 %
Savings and money market11,437,779 22,823 0.20 %9,623,790 45,364 0.47 %
Time2,682,315 21,406 0.80 %4,162,523 70,641 1.70 %
Total interest-bearing deposits19,698,726 54,116 0.27 %18,388,996 135,547 0.74 %
Securities sold under agreements to repurchase155,888 239 0.15 %150,118 350 0.23 %
Federal Home Loan Bank advances899,785 18,111 2.01 %1,750,578 33,135 1.89 %
Subordinated debt and other borrowings604,081 26,347 4.36 %692,169 30,222 4.37 %
Total interest-bearing liabilities21,358,480 98,813 0.46 %20,981,861 199,254 0.95 %
Noninterest-bearing deposits8,910,349 — — 6,380,155 — — 
Total deposits and interest-bearing liabilities30,268,829 $98,813 0.33 %27,362,016 $199,254 0.73 %
Other liabilities314,650 337,855 
Stockholders' equity 5,109,153 4,634,666 
Total liabilities and stockholders' equity$35,692,632 $32,334,537 
Net  interest  income 
$932,401 $821,788 
Net interest spread (3)
2.87 %2.72 %
Net interest margin (4)
3.02 %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 $33.8 million of taxable equivalent income for the year ended Dec. 31, 2021 compared to $29.9 million for the year ended Dec. 31, 2020. The tax-exempt benefit has been reduced by the projected impact of tax-exempt income that will be disallowed pursuant to IRS Regulations as of and for the then current period presented.
(3) Yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. The net interest spread calculation excludes the impact of demand deposits. Had the impact of demand deposits been included, the net interest spread for the year ended Dec. 31, 2021 would have been 3.01% compared to a net interest spread of 2.94% for the year ended Dec. 31, 2020.
(4) Net interest margin is the result of annualized net interest income calculated on a tax equivalent basis divided by average interest-earning assets for the period.
This information is preliminary and based on company data available at the time of the presentation.

13

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
(dollars in thousands)December SeptemberJuneMarchDecemberSeptember
202120212021202120202020
Asset quality information and ratios:
Nonperforming assets:
Nonaccrual loans$31,569 46,692 53,105 72,135 73,836 71,390 
ORE and other nonperforming assets (NPAs)
8,537 8,415 9,602 10,651 12,360 19,445 
Total nonperforming assets$40,106 55,107 62,707 82,786 86,196 90,835 
Past due loans over 90 days and still accruing interest$1,607 1,914 1,810 2,833 2,362 1,313 
Accruing troubled debt restructurings (5)
$2,354 2,397 2,428 2,460 2,494 2,588 
Accruing purchase credit deteriorated loans$13,086 12,158 12,400 13,904 14,091 14,346 
Net loan charge-offs$8,077 9,281 9,968 11,397 10,775 13,057 
Allowance for credit losses to nonaccrual loans833.8 %575.3 %515.5 %389.4 %386.1 %404.3 %
As a percentage of total loans:
Past due accruing loans over 30 days0.09 %0.09 %0.07 %0.09 %0.19 %0.11 %
Potential problem loans (6)
0.47 %0.60 %0.74 %0.70 %0.77 %0.96 %
Allowance for credit losses (20)
1.12 %1.17 %1.20 %1.22 %1.27 %1.28 %
Nonperforming assets to total loans, ORE and other NPAs0.17 %0.24 %0.27 %0.36 %0.38 %0.40 %
    Classified asset ratio (Pinnacle Bank) (8)
4.1 %5.6 %6.8 %7.3 %8.1 %9.9 %
Annualized net loan charge-offs to avg. loans (7)
0.14 %0.16 %0.17 %0.20 %0.19 %0.23 %
Wtd. avg. commercial loan internal risk ratings (6)
45.346.046.145.245.145.2
Interest rates and yields:
Loans4.04 %4.13 %4.11 %4.11 %4.20 %4.04 %
Securities2.08 %2.04 %2.25 %2.29 %2.27 %2.38 %
Total earning assets3.20 %3.32 %3.42 %3.41 %3.44 %3.38 %
Total deposits, including non-interest bearing0.14 %0.17 %0.20 %0.26 %0.33 %0.43 %
Securities sold under agreements to repurchase0.15 %0.14 %0.13 %0.20 %0.21 %0.21 %
FHLB advances2.04 %2.04 %2.03 %1.95 %2.00 %1.82 %
Subordinated debt and other borrowings4.23 %4.45 %4.52 %4.22 %4.13 %3.99 %
Total deposits and interest-bearing liabilities0.26 %0.30 %0.35 %0.40 %0.49 %0.59 %
Capital and other ratios (8):
Pinnacle Financial ratios:
Stockholders' equity to total assets13.8 %14.2 %14.4 %14.0 %14.0 %14.2 %
Common equity Tier one10.9 %10.5 %10.5 %10.3 %10.0 %9.9 %
Tier one risk-based11.7 %11.3 %11.3 %11.2 %10.9 %10.7 %
Total risk-based13.8 %14.0 %14.5 %14.5 %14.3 %14.2 %
Leverage9.7 %9.3 %9.2 %8.9 %8.6 %8.5 %
Tangible common equity to tangible assets8.8 %9.0 %9.0 %8.6 %8.5 %8.5 %
Pinnacle Bank ratios:
Common equity Tier one11.9 %11.7 %11.9 %11.8 %11.4 %11.3 %
Tier one risk-based11.9 %11.7 %11.9 %11.8 %11.4 %11.3 %
Total risk-based12.6 %12.5 %13.1 %13.0 %12.7 %12.6 %
Leverage9.9 %9.7 %9.6 %9.4 %9.1 %8.9 %
Construction and land development loans
as a percentage of total capital (19)
79.1 %89.3 %80.1 %76.0 %89.0 %86.7 %
Non-owner occupied commercial real estate and
multi-family as a percentage of total capital (19)
234.1 %252.4 %248.8 %256.0 %264.0 %268.8 %
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)DecemberSeptemberJuneMarchDecemberSeptember
202120212021202120202020
Per share data:
Earnings per common share – basic$1.72 1.76 1.70 1.61 1.42 1.42 
Earnings per common share - basic, excluding non-GAAP adjustments$1.71 1.76 1.69 1.61 1.58 1.45 
Earnings per common share – diluted$1.71 1.75 1.69 1.61 1.42 1.42 
Earnings per common share - diluted, excluding non-GAAP adjustments$1.70 1.75 1.68 1.61 1.58 1.45 
Common dividends per share$0.18 0.18 0.18 0.18 0.16 0.16 
Book value per common share at quarter end (9)
$66.89 65.36 64.19 62.33 61.80 60.26 
Tangible book value per common share at quarter end (9)
$42.55 40.98 39.77 37.88 37.25 35.68 
Revenue per diluted common share$4.47 4.50 4.37 4.17 4.03 3.95 
Revenue per diluted common share, excluding non-GAAP adjustments$4.46 4.50 4.37 4.17 4.03 3.94 
Investor information:
Closing sales price of common stock on last trading day of quarter$95.50 94.08 88.29 88.66 64.40 35.59 
High closing sales price of common stock during quarter$104.72 98.00 92.94 93.58 65.51 44.47 
Low closing sales price of common stock during quarter$90.20 83.84 84.25 63.48 35.97 33.28 
Closing sales price of depositary shares on last trading day of quarter$28.21 28.14 29.13 27.62 27.69 26.49 
High closing sales price of depositary shares during quarter$28.99 29.23 29.13 27.83 27.94 26.82 
Low closing sales price of depositary shares during quarter$27.42 28.00 27.38 26.83 26.45 25.51 
Other information:
Residential mortgage loan sales:
Gross loans sold$352,342 347,664 394,299 546,963 479,867 511,969 
Gross fees (10)
$10,098 11,215 15,552 18,793 23,729 23,557 
Gross fees as a percentage of loans originated2.87 %3.23 %3.94 %3.44 %4.94 %4.60 %
Net gain on residential mortgage loans sold$4,244 7,814 6,700 13,666 12,387 19,453 
Investment gains on sales of securities, net (15)
$393 — 366 — — 651 
Brokerage account assets, at quarter end (11)
$7,187,085 6,597,152 6,344,416 5,974,884 5,509,560 4,866,726 
Trust account managed assets, at quarter end$4,720,290 4,155,510 3,640,932 3,443,373 3,295,198 2,978,035 
Core deposits (12)
$29,316,911 27,170,367 25,857,639 24,971,177 23,510,883 22,003,989 
Core deposits to total funding (12)
89.5 %87.8 %86.3 %83.1 %79.5 %76.9 %
Risk-weighted assets$29,349,534 27,945,624 26,819,277 26,105,158 25,791,896 25,189,944 
Number of offices 118 117 116 115 114 114 
Total core deposits per office$248,448 232,225 222,911 217,141 206,236 193,017 
Total assets per full-time equivalent employee$13,541 13,188 13,087 13,468 13,262 13,027 
Annualized revenues per full-time equivalent employee$474.1 489.4 491.3 488.3 459.8 456.1 
Annualized expenses per full-time equivalent employee$238.0 241.9 246.3 239.4 246.6 221.1 
Number of employees (full-time equivalent)2,841.0 2,769.5 2,706.0 2,621.0 2,634.0 2,596.5 
Associate retention rate (13)
93.4 %93.4 %93.3 %94.4 %94.8 %94.4 %
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
Year ended
(dollars in thousands, except per share data)
December SeptemberDecemberDecember December
20212021202020212020
Net interest income$238,763 237,543 220,985 932,401 821,788 
Noninterest income100,723 104,095 83,444 395,734 317,840 
Total revenues339,486 341,638 304,429 1,328,135 1,139,628 
Less: Investment (gains) losses on sales of securities, net(393)— — (759)(986)
Total revenues excluding the impact of adjustments noted above$339,093 341,638 304,429 1,327,376 1,138,642 
Noninterest expense$170,417 168,851 161,305 660,104 564,455 
Less: ORE expense37 (79)1,457 (712)8,555 
FHLB restructuring charges— — 10,307 — 15,168 
Hedge termination charges— — 4,673 — 4,673 
Noninterest expense excluding the impact of adjustments noted above$170,380 168,930 144,868 660,816 536,059 
Pre-tax income$166,394 169,405 133,944 651,905 371,358 
Provision for credit losses2,675 3,382 9,180 16,126 203,815 
Pre-tax pre-provision net revenue169,069 172,787 143,124 668,031 575,173 
Adjustments noted above(356)(79)16,437 (1,471)27,410 
Adjusted pre-tax pre-provision net revenue (14)
$168,713 172,708 159,561 666,560 602,583 
Noninterest income$100,723 104,095 83,444 395,734 317,840 
Less: Adjustments as noted above(393)— — (759)(986)
Noninterest income excluding the impact of adjustments noted above$100,330 104,095 83,444 394,975 316,854 
Efficiency ratio (4)
50.20 %49.42 %52.99 %49.70 %49.53 %
Adjustments as noted above0.05 %0.03 %(5.40)%0.08 %(2.45)%
Efficiency ratio (excluding adjustments noted above) (4)
50.25 %49.45 %47.59 %49.78 %47.08 %
Total average assets$37,132,078 35,896,130 34,436,765 35,692,632 32,334,537 
Noninterest income to average assets (1)
1.08 %1.15 %0.96 %1.11 %0.98 %
Adjustments as noted above(0.01)%— %— %— %— %
Noninterest income (excluding adjustments noted above) to average assets (1)
1.07 %1.15 %0.96 %1.11 %0.98 %
Noninterest expense to average assets (1)
1.82 %1.87 %1.86 %1.85 %1.75 %
Adjustments as noted above— %— %(0.19)%— %(0.09)%
Noninterest expense (excluding adjustments noted above) to average assets (1)
1.82 %1.87 %1.67 %1.85 %1.66 %
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)December SeptemberJuneMarchDecemberSeptember
202120212021202120202020
Net income available to common shareholders$129,730 132,779 127,992 121,630 107,078 106,847 
Investment (gains) losses on sales of securities, net(393)— (366)— — (651)
ORE expense37 (79)(657)(13)1,457 1,795 
FHLB restructuring charges— — — — 10,307 1,991 
Hedge termination charges— — — — 4,673 — 
Tax effect on adjustments noted above (18)
93 21 267 3 (4,297)(819)
Net income available to common shareholders excluding adjustments noted above $129,467 132,721 127,236 121,620 119,218 109,163 
Basic earnings per common share$1.72 1.76 1.70 1.61 1.42 1.42 
Adjustment due to investment (gains) losses on sales of securities, net(0.01)— — — — (0.01)
Adjustment due to ORE expense— — (0.01)— 0.02 0.02 
Adjustment due to FHLB restructuring charges— — — — 0.14 0.03 
Adjustment due to hedge termination charges— — — — 0.06 — 
Adjustment due to tax effect on adjustments noted above (18)
— — — — (0.06)(0.01)
Basic earnings per common share excluding adjustments noted above$1.71 1.76 1.69 1.61 1.58 1.45 
Diluted earnings per common share$1.71 1.75 1.69 1.61 1.42 1.42 
Adjustment due to investment (gains) losses on sales of securities, net(0.01)— — — — (0.01)
Adjustment due to ORE expense— — (0.01)— 0.02 0.02 
Adjustment due to FHLB restructuring charges— — — — 0.14 0.03 
Adjustment due to hedge termination charges— — — — 0.06 — 
Adjustment due to tax effect on adjustments noted above (18)
— — — — (0.06)(0.01)
Diluted earnings per common share excluding the adjustments noted above$1.70 1.75 1.68 1.61 1.58 1.45 
Revenue per diluted common share$4.47 4.50 4.37 4.17 4.03 3.95 
Adjustments as noted above(0.01)— — — — (0.01)
Revenue per diluted common share excluding adjustments noted above$4.46 4.50 4.37 4.17 4.03 3.94 
Book value per common share at quarter end (9)
$66.89 65.36 64.19 62.33 61.80 60.26 
Adjustment due to goodwill, core deposit and other intangible assets(24.34)(24.38)(24.42)(24.45)(24.55)(24.59)
Tangible book value per common share at quarter end (9)
$42.55 40.98 39.77 37.88 37.25 35.68 
Equity method investment (17)
Fee income from BHG, net of amortization$30,844 30,409 32,071 28,950 24,294 26,445 
Funding cost to support investment388 379 1,230 1,205 1,222 1,231 
Pre-tax impact of BHG30,456 30,030 30,841 27,745 23,072 25,214 
Income tax expense at statutory rates (18)
7,961 7,850 8,062 7,253 6,031 6,591 
Earnings attributable to BHG$22,495 22,180 22,779 20,492 17,041 18,623 
Basic earnings per common share attributable to BHG$0.30 0.29 0.30 0.27 0.23 0.25 
Diluted earnings per common share attributable to BHG$0.30 0.29 0.30 0.27 0.23 0.25 
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
Year ended
(dollars in thousands, except per share data)December
20212020
Net income available to common shareholders$512,131 304,725 
Investment (gains) losses on sales of securities, net(759)(986)
ORE expense(712)8,555 
FHLB restructuring charges— 15,168 
Hedge termination charges— 4,673 
Tax effect on adjustments noted above (18)
385 (7,165)
Net income available to common shareholders excluding adjustments noted above $511,045 324,970 
Basic earnings per common share$6.79 4.04 
Adjustment due to investment (gains) losses on sales of securities, net(0.01)(0.01)
Adjustment due to ORE expense (0.01)0.11 
Adjustment due to FHLB restructuring charges— 0.20 
Adjustment due to hedge termination charges— 0.06 
Adjustment due to tax effect on adjustments noted above (18)
— (0.10)
Basic earnings per common share excluding adjustments noted above$6.77 4.30 
Diluted earnings per common share6.75 4.03 
Adjustment due to investment (gains) losses on sales of securities, net(0.01)(0.01)
Adjustment due to ORE expense (0.01)0.11 
Adjustment due to FHLB restructuring charges— 0.20 
Adjustment due to hedge termination charges— 0.06 
Adjustment due to tax effect on adjustments noted above (18)
— (0.09)
Diluted earnings per common share excluding the adjustments noted above$6.73 4.30 
Revenue per diluted common share$17.49 15.06 
Adjustments as noted above(0.01)(0.01)
Revenue per diluted common share excluding adjustments noted above$17.48 15.05 
Equity method investment (17)
Fee income from BHG, net of amortization$122,274 83,539 
Funding cost to support investment3,202 6,709 
Pre-tax impact of BHG119,072 76,830 
Income tax expense at statutory rates (18)
31,125 20,083 
Earnings attributable to BHG$87,947 56,747 
Basic earnings per common share attributable to BHG$1.17 0.75 
Diluted earnings per common share attributable to BHG$1.16 0.75 
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
Year ended
(dollars in thousands, except per share data)
December SeptemberDecemberDecember December
20212021202020212020
Return on average assets (1)
1.39 %1.47 %1.24 %1.43 %0.94 %
Adjustments as noted above(0.01)%— %0.14 %— %0.07 %
Return on average assets excluding adjustments noted above (1)
1.38 %1.47 %1.38 %1.43 %1.01 %
Tangible assets:
Total assets$38,469,399 36,523,936 34,932,860 $38,469,399 34,932,860 
Less:   Goodwill(1,819,811)(1,819,811)(1,819,811)(1,819,811)(1,819,811)
Core deposit and other intangible assets(33,819)(35,876)(42,336)(33,819)(42,336)
Net tangible assets$36,615,769 34,668,249 33,070,713 $36,615,769 33,070,713 
Tangible common equity:
Total stockholders' equity$5,310,607 5,191,798 4,904,611 $5,310,607 4,904,611 
Less: Preferred stockholders' equity(217,126)(217,126)(217,126)(217,126)(217,126)
Total common stockholders' equity5,093,481 4,974,672 4,687,485 5,093,481 4,687,485 
Less: Goodwill(1,819,811)(1,819,811)(1,819,811)(1,819,811)(1,819,811)
Core deposit and other intangible assets(33,819)(35,876)(42,336)(33,819)(42,336)
Net tangible common equity$3,239,851 3,118,985 2,825,338 $3,239,851 2,825,338 
Ratio of tangible common equity to tangible assets8.85 %9.00 %8.54 %8.85 %8.54 %
Average tangible assets:
Average assets$37,132,078 35,896,130 34,436,765 $35,692,632 32,334,537 
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(35,152)(37,228)(43,886)(38,308)(47,196)
Net average tangible assets$35,277,115 34,039,091 32,573,068 $33,834,513 30,467,530 
Return on average assets (1)
1.39 %1.47 %1.24 %1.43 %0.94 %
Adjustment due to goodwill, core deposit and other intangible assets0.07 %0.08 %0.07 %0.08 %0.06 %
Return on average tangible assets (1)
1.46 %1.55 %1.31 %1.51 %1.00 %
Adjustments as noted above— %— %0.15 %— %0.07 %
Return on average tangible assets excluding adjustments noted above (1)
1.46 %1.55 %1.46 %1.51 %1.07 %
Average tangible common equity:
Average stockholders' equity$5,262,586 5,176,625 4,852,373 $5,109,153 4,634,666 
Less: Average preferred equity(217,126)(217,126)(217,126)(217,126)(124,074)
Average common equity5,045,460 4,959,499 4,635,247 4,892,027 4,510,592 
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(35,152)(37,228)(43,886)(38,308)(47,196)
Net average tangible common equity$3,190,497 3,102,460 2,771,550 $3,033,908 2,643,585 
Return on average equity (1)
9.78 %10.18 %8.78 %10.02 %6.57 %
Adjustment due to average preferred stockholders' equity0.42 %0.44 %0.41 %0.45 %0.19 %
Return on average common equity (1)
10.20 %10.62 %9.19 %10.47 %6.76 %
Adjustment due to goodwill, core deposit and other intangible assets5.93 %6.36 %6.18 %6.41 %4.77 %
Return on average tangible common equity (1)
16.13 %16.98 %15.37 %16.88 %11.53 %
Adjustments as noted above(0.03)%(0.01)%1.74 %(0.04)%0.76 %
Return on average tangible common equity excluding adjustments noted above (1)
16.10 %16.97 %17.11 %16.84 %12.29 %
Allowance for credit losses on loans as a percent of total loans (20)
1.12 %1.17 %1.27 %1.12 %1.27 %
Impact of excluding PPP loans from total loans0.02 %0.03 %0.11 %0.02 %0.11 %
Allowance as adjusted for the above exclusion of PPP loans from total loans (20)
1.14 %1.20 %1.38 %1.14 %1.38 %
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. 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.

20