8-K

Exhibit 99.1

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 18, 2006

, INC.
(Exact name of registrant as specified in charter)
Tennessee	000-31225	62-1812853
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
211 Commerce Street, Suite 300, Nashville, Tennessee			37201
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (615) 744-3700

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

This Current Report on Form 8-K is being furnished to disclose the press release issued by Pinnacle Financial Partners, Inc., a Tennessee corporation (the "Company"), on July 18, 2006. The press release, which is furnished as Exhibit 99.1 hereto pursuant to Item 2.02 of Form 8-K, was to announce the Company's results of operations for the three and six months ended June 30, 2006.

The press release furnished herewith as Exhibit 99.1 contains certain non-GAAP financial measures as defined by Regulation G of the rules and regulations of the Securities and Exchange Commission. To supplement the Company’s consolidated financial statements prepared on a GAAP basis, the Company is disclosing non-GAAP net earnings, non-GAAP EPS, and certain non-GAAP performance ratios for the three and six months ended June 30, 2006, in each case excluding merger related expenses associated with its merger with Cavalry Bancorp, Inc., a Tennessee corporation ("Cavalry") on March 15, 2006 as well as with respect to certain non-GAAP performance ratios, goodwill and the core deposit intangible associated with the Cavalry merger. The Company is also disclosing the range of its projected earnings per share diluted for the third quarter of 2006 and the 2006 fiscal year excluding anticipated merger related expenses associated with its merger with Cavalry.

The presentation of this 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 the press 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.

The Company 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 vary extensively from company to company, the Company believes that the presentation of this information allows investors to more easily compare the Company's results to the results of other companies. The Company also included non-GAAP net earnings, non-GAAP EPS and non-GAAP performance ratios because it believes that these measures more accurately reflect the Company’s operating performance for the 2006 second quarter and six months ended June 30, 2006, when compared to the same period in 2005 and because it believes that the information provides investors with additional information to evaluate the Company’s past financial results and ongoing operational performance.

The presentation of the Company’s projected earnings per share diluted for the 2006 third quarter excluding the impact of merger related expenses and the Company's projected earnings per share for the 2006 fiscal year excluding anticipated merger related expenses is included in the press release to provide investors with the information the Company believes is necessary to compare the Company’s performance during the 2005 fiscal year, without the impact of the anticipated merger related expenses associated with the Cavalry merger, with the projected performance for the 2006 third quarter and 2006 fiscal year when the Company is required to expense the merger related expenses associated with the Cavalry merger.

The Company's management utilizes this non-GAAP financial information to compare the Company's operating performance versus the comparable periods in 2005 and will utilize non-GAAP earnings per share diluted for the 2006 fiscal year excluding the anticipated merger related expenses in calculating whether or not the Company met the performance targets of its 2006 Annual Cash Incentive Plan.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1 Press release issued by Pinnacle Financial Partners, Inc. dated July 18, 2006

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PINNACLE FINANCIAL PARTNERS, INC.
By:	/s/ Harold R. Carpenter
	Harold R. Carpenter
	Executive Vice President and
	Chief Financial Officer

Date: July 19, 2006

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release issued by Pinnacle Financial Partners, Inc. dated July 18, 2006

EX-99.1

FOR IMMEDIATE RELEASE

MEDIA CONTACT:Brannan Atkinson 615-320-7532

FINANCIAL CONTACT: Harold Carpenter 615-744-3742

WEBSITE:www.pnfp.com

PINNACLE FINANCIAL REPORTS RECORD LOAN GROWTH

Diluted earnings per share excluding merger related charges

exceed I/B/E/S consensus estimate

NASHVILLE, Tenn., July 18, 2006 - Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) today reported record earnings, superior credit quality and record loan growth for the quarter ended June 30, 2006. Fully diluted earnings per share of $0.26 for the quarter included the impact of merger related expenses of $0.04 which were associated with Pinnacle’s merger with Cavalry Bancorp that was effective on March 15, 2006. As a result, fully diluted earnings per share exclusive of merger related items were $0.30 for the quarter ended June 30, 2006, compared to $0.21 fully diluted earnings per share for the quarter ended June 30, 2005, an increase of 43 percent.

Fully diluted earnings per share of $0.51 for the six months ended June 30, 2006 included the impact of merger related expenses of $0.06. As a result, fully diluted earnings per share exclusive of merger related items were $0.57 for the six months ended June 30, 2006, compared to $0.40 fully diluted earnings per share for the six months ended June 30, 2005, an increase of 43 percent.

SECOND QUARTER 2006 HIGHLIGHTS:

·   Record earnings:

o   Record net income for the second quarter of 2006 of $4.32 million, up 121 percent from the prior year’s second quarter net income of $1.96 million.

o   Record diluted earnings per share for the second quarter of 2006 of $0.26 up almost 24 percent from the same quarter last year. Diluted earnings per share exclusive of merger related expenses were $0.30, up 43 percent from the prior year’s second quarter diluted earnings per share of $0.21. Fully diluted earnings per share exclusive of merger related charges for the quarter ended June 30, 2006 were $0.30 exceeding the I/B/E/S consensus estimate of $0.29 per fully diluted share.

o   Revenue (the sum of net interest income and noninterest income) for the quarter ended June 30, 2006, amounted to $21.28 million, compared to $8.21 million for the same quarter of last year, an increase of 159 percent.

·   Superior credit quality:

o   Past due loans over 30 days, excluding nonperforming loans, were only 0.25 percent of total loans June 30, 2006.

o   Nonperforming assets were only 0.21 percent of total loans at June 30, 2006.

·   Strong balance sheet growth:

o   Loans at June 30, 2006 were $1.36 billion, up 144 percent from the same period last year reflecting strong organic growth and the impact of the Cavalry merger. Net loans increased by $123 million between the first and second quarters of 2006, a record for the company.

o   Total deposits at June 30, 2006 were $1.56 billion, up 126 percent from the same period last year. Noninterest bearing demand deposit accounts which represent 20 percent of total deposits were up 119 percent from the same period last year reflecting strong organic growth and the impact of the Cavalry merger. At $1.56 billion in deposits, we believe our market share would approximate 6 percent based on June 30, 2005 FDIC market share data of the Nashville-Davidson-Murfreesboro MSA, a substantial increase from the 2.75 percent market share reflected as of June 30, 2005.

EXTRAORDINARY GROWTH MAKES PINNACLE THE LARGEST NASHVILLE BANK

With its acquisition and dramatic organic loan and deposit growth during the first half of 2006, Pinnacle now has $1.99 billion in assets making the company the largest financial services firm headquartered in Nashville and the second largest headquartered in Tennessee.

Pinnacle’s merger with Cavalry Bancorp was completed on March 15, 2006. Consequently, Pinnacle’s balance sheet and statement of income have been impacted by the Cavalry amounts since March 15, 2006.

Page 2

FINANCIAL PERFORMANCE AND BALANCE SHEET GROWTH

·   Return on average assets for the quarter ended June 30, 2006, was 0.92 percent. Return on average tangible assets (average total assets less goodwill and core deposit intangibles) for the quarter ended June 30, 2006, was 0.98 percent. The return on average tangible assets exclusive of merger related items for the quarter ended June 30, 2006, was 1.11 percent, compared to 0.96 percent for the same quarter last year.

·   Return on average stockholders’ equity for the quarter ended June 30, 2006, was 7.40 percent. Return on average tangible stockholders’ equity (average total stockholders’ equity less goodwill and core deposit intangibles) for the quarter ended June 30, 2006, was 16.37 percent. Return on average tangible stockholders’ equity exclusive of merger related expenses for the quarter ended June 30, 2006, was 18.49 percent, compared to 13.21 percent for the same quarter last year.

Total assets grew to $1.99 billion as of June 30, 2006, up $1.11 billion or 128 percent from the $872 million reported at June 30, 2005. The $1.11 billion year over year increase in total assets was comprised of $314 million in asset growth at Pinnacle, $670 million in assets associated with the acquisition of Cavalry Bancorp and $129 million in goodwill and core deposit intangibles associated with that acquisition. This rapid asset growth was achieved while reducing the securities to total assets ratio from 27.4 percent at December 31, 2005 to 15.4 percent at June 30, 2006.

“We are extremely pleased with the accelerating growth momentum that we saw during the second quarter of this year compared to the same quarter last year both for the newly combined footprint as a whole and for the former Cavalry footprint on a stand-alone basis. Many institutions experience attrition during this stage of a merger. We actually saw faster loan and deposit growth for the combined firm this year than last,” said M. Terry Turner, Pinnacle’s president and CEO. “This is a tribute to all of our associates who have worked tirelessly to help existing clients and fellow associates through this transition while continuing to add clients at a dramatic pace. Additionally, we believe the recent announcement of the merger of two large regional bank holding companies in our market will create disruption and turmoil within their customer and employee base, providing us additional significant growth opportunities,” he added.

Page 3

REVENUE

·   Net interest income for the quarter ended June 30, 2006 was $16.90 million compared to $6.80 million for the quarter ended June 30, 2005, an increase of 149 percent.

o   Net interest margin for the second quarter of 2006 was 4.17 percent, compared to a net interest margin of 3.65 percent reported for the first quarter of 2006 and 3.57 percent for the same period last year.

o   Percentage of daily floating rate loans to total loans was 47.0 percent at June 30, 2006.

·   Noninterest income for the quarter ended June 30, 2006 was $4.38 million, a 210 percent increase over the $1.41 million recorded during the same quarter in 2005.

“As anticipated, the Cavalry merger did expand our net interest margin, however, the yield curve continues to present challenges for us as we seek ways to expand our margins,” said Harold Carpenter, chief financial officer of Pinnacle Financial Partners. “Based on our current models, we believe our net interest margin for the third quarter of 2006 should be within a range of 3.90 percent to 4.10 percent.”

“Our net loan growth was approximately $123 million during the second quarter of 2006 which represents an annualized growth rate of 40 percent,” Carpenter said. “Market acceptance for Pinnacle in Murfreesboro has been outstanding as our Murfreesboro associates produced more business during the first half of 2006 than during the same time period in 2005. We anticipate continued dramatic loan growth which we believe will result in increased revenues despite what continues to be a challenging rate environment.”

At June 30, 2006, the ratio of investment securities to total assets declined to 15.4 percent from the 26.1 percent reported a year ago. Pinnacle anticipates that this ratio will approximate 15.0 to 18.0 percent during 2006.

Noninterest income during the first quarter of 2006 represented approximately 20.6 percent of total revenues, compared to 17.2 percent for the same quarter in 2005.

NONINTEREST EXPENSE

·   Noninterest expense for the quarter ended June 30, 2006, was $13.11 million.

·   Merger related charges incurred during the quarter ended June 30, 2006, were $921,000. These charges consisted of direct and incremental integration costs incurred in connection with the merger.

·   During the quarter ended June 30, 2006, Pinnacle recognized compensation related to the expensing of stock options in accordance with Statement of Financial Accounting Standards No. 123R of approximately $211,000 on an after-tax basis.

·   The efficiency ratio (noninterest expense divided by net interest income and noninterest income) was 61.6 percent during the second quarter of 2006. The efficiency ratio excluding merger related expenses was 57.3 percent during the second quarter of 2006, compared to 60.4 percent during the second quarter of 2005.

Page 4

Pinnacle anticipates the opening of its new office in the Donelson area of Davidson County in late fourth quarter of 2006. At June 30, 2006, the firm employed 359 associates (full-time equivalent) and anticipates hiring 40 additional associates before the end of this year. Pinnacle anticipates that approximately 65 percent of these new associates will be in customer contact roles.

CREDIT QUALITY

·   Provision for loan losses was $1.71 million for the second quarter of 2006, compared to $483,000 in the second quarter in 2005. During the second quarter of 2006, the firm recorded net charge-offs of $441,000 compared to $22,000 during the same period in 2005. One commercial loan accounted for substantially all of the net charge-off activity for the second quarter of 2006.

o   Annualized net charge-offs to total loans were 0.07 percent for the six months ended June 30, 2006.

·   Allowance for loan losses represented 1.08 percent of total loans at June 30, 2006, compared to1.08 percent at March 31, 2006 and 1.21 percent at Dec. 31, 2005.

o   Nonperforming assets as a percentage of total loans and other real estate increased to 0.21 percent at June 30, 2006 from 0.11 percent at June 30, 2005.

The reduction in the percentage of allowance for loan losses to total loans was attributable to the Cavalry acquisition. At June 30, 2006, Pinnacle assessed its allowance for loan losses using an assessment methodology for Pinnacle and a separate methodology for the former Cavalry franchise, the Cavalry methodology being consistent with Cavalry’s past practice.In view of the acquisition, Pinnacle management is currently evaluating what changes should be made to the process by which the firm determines its consolidated allowance for loan losses. Pinnacle expects to implement any such changes prior to the end of the third quarter of 2006.

Page 5

“We remain extremely pleased with the credit quality of our firm,” said Turner. “Both Pinnacle and Cavalry have had excellent asset quality indicators for quite some time. We continue to believe that our asset quality is a key predictor of our ability to create long-term shareholder value.”

PROGRESS OF THE CAVALRY INTEGRATION

On Oct. 3, 2005, Pinnacle reported that the firm had entered into a definitive agreement to acquire the common stock of Cavalry Bancorp, a one-bank holding company in Murfreesboro, Tenn. During December 2005, the shareholders of both Pinnacle and Cavalry voted to approve the merger. During the first quarter of 2006, all regulatory approvals were obtained and the merger was consummated on March 15, 2006.

Key Integration MilestonesStatus

Consolidation of credit policies resulting in larger credit limits                                                                              Complete

Conversion of Cavalry from service bureau platform to in-house processing                                                     Complete

Merger celebration - cultural integration kickoff                                                                                                       Complete

Conversion of Pinnacle data systems to target environment                                                                                  Complete

Conversion of Cavalry brand and signage to Pinnacle                                                                                            Complete

INVESTMENT OUTLOOK

Management has developed several financial forecast scenarios for the next several quarters. Based on anticipated growth trends and future investments in the franchise, Pinnacle estimates its third quarter 2006 diluted earnings per share will approximate $0.31 to $0.32 and approximately $0.31 to $0.33 per share, exclusive of merger-related expenses. Additionally, based on anticipated growth trends and future investments in the franchise, Pinnacle estimates its 2006 earnings will approximate $1.14 to $1.18 per fully diluted share and approximately $1.21 to $1.26 per fully diluted share, exclusive of merger-related expenses. For 2007, Pinnacle estimates that its earnings will approximate $1.50 to $1.57 per fully diluted share.

As noted previously, management has developed several scenarios under which these estimates can be achieved and believes these estimates to be reasonable based on these scenarios. However, unanticipated events or developments including the execution of any initiative involving the development of any market other than the current Nashville-Davidson-Murfreesboro MSA, the opportunity to hire more seasoned professionals than anticipated or the ability to grow loans significantly in excess of the levels contemplated may cause the actual results of Pinnacle to differ materially from these estimates.

Page 6

Pinnacle Financial Partners, the largest financial services firm headquartered in Nashville provides a full range of banking, investment and insurance products and services designed for small- to mid-sized businesses and their owners, real estate professionals and individuals interested in a deep relationship with their financial institution. Pinnacle provides financial planning services and comprehensive wealth management services to help clients increase, protect and distribute their assets. The firm also has a well-established expertise in commercial real estate.

Pinnacle opened its first office in October 2000. Since then the firm has added seven other offices on a denovo basis and acquired Cavalry Bancorp with its nine offices bringing the total number of offices to 17 in the most attractive trade areas in the Nashville-Davidson-Murfreesboro MSA.

Additional information concerning Pinnacle can be accessed at www.pnfp.com.

###

Certain of the statements in this release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "expect," "anticipate," "intend," "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. All forward-looking statements are subject to risks, uncertainties and other facts that may cause the actual results, performance or achievements of Pinnacle to differ materially from any results expressed or implied by such forward-looking statements. Such factors include, without limitation, (i) unanticipated deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses, (ii) the inability of Pinnacle to continue to grow its loan portfolio at historic rates, (iii) increased competition with other financial institutions, (iv) lack of sustained growth in the economy in the Nashville-Davidson-Murfreesboro MSA, (v) rapid fluctuations or unanticipated changes in interest rates, (vi) the inability of Pinnacle to satisfy regulatory requirements for its expansion plans, (vii) the inability of Pinnacle to execute its expansion plans, (viii) the inability of Pinnacle to successfully integrate the former Cavalry Bancorp's operations with Pinnacle's and (ix) changes in the legislative and regulatory environment. A more detailed description of these and other risks is contained in Pinnacle's most recent annual report on Form 10-K. Many of such factors are beyond Pinnacle's ability to control or predict, and readers are cautioned not to put undue reliance on such forward-looking statements. Pinnacle disclaims any obligation to update or revise any forward-looking statements contained in this release, whether as a result of new information, future events or otherwise.

Page 7

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - UNAUDITED

	June 30, 2006			December 31, 2005
ASSETS
Cash and noninterest-bearing due from banks	$	44,710,092		$	25,935,948
Interest-bearing due from banks		1,159,620			839,960
Federal funds sold		66,996,985			31,878,362
Cash and cash equivalents		112,866,697			58,654,270
Securities available-for-sale, at fair value		278,348,412			251,749,094
Securities held-to-maturity (fair value of $26,068,344 and $26,546,297 at June 30, 2006 and December 31, 2005, respectively)		27,294,377			27,331,251
Mortgage loans held-for-sale		8,057,161			4,874,323
Loans		1,358,273,353			648,024,032
Less allowance for loan losses		(14,686,365	)		(7,857,774	)
Loans, net		1,343,586,988			640,166,258
Premises and equipment, net		35,905,221			12,915,595
Investments in unconsolidated subsidiaries and other entities		10,576,326			6,622,645
Accrued interest receivable		9,771,278			4,870,197
Goodwill		115,835,254			-
Core deposit intangible		12,454,958			-
Other assets		30,928,119			9,588,097
Total assets	$	1,985,624,791		$	1,016,771,730
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand	$	312,708,770		$	155,811,214
Interest-bearing demand		186,749,623			72,520,757
Savings and money market accounts		456,054,946			304,161,625
Time		604,371,835			277,657,129
Total deposits		1,559,885,174			810,150,725
Securities sold under agreements to repurchase		104,379,910			65,834,232
Federal Home Loan Bank advances		33,748,516			41,500,000
Subordinated debt		30,929,000			30,929,000
Accrued interest payable		3,842,153			1,884,596
Other liabilities		14,101,519			3,036,752
Total liabilities		1,746,886,272			953,335,305
Stockholders’ equity:
Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding		-			-
Common stock, par value $1.00; 90,000,000 shares authorized; 15,370,116 issued and outstanding at June 30, 2006 and 8,426,551 issued and outstanding at December 31, 2005		15,370,116			8,426,551
Additional paid-in capital		210,099,775			44,890,912
Unearned compensation		-			(169,689	)
Retained earnings		20,116,661			13,182,291
Accumulated other comprehensive loss, net		(6,848,033	)		(2,893,640	)
Stockholders’ equity		238,738,519			63,436,425
Total liabilities and stockholders’ equity	$	1,985,624,791		$	1,016,771,730

Page 8

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

	Three Months Ended June 30				Six Months Ended June 30
	2006		2005		2006		2005
Interest income:
Loans, including fees	$	24,245,895	$	8,002,502	$	37,424,725	$	14,956,867
Securities:
Taxable		3,148,459		2,134,735		6,009,577		4,156,518
Tax-exempt		494,849		238,914		895,622		440,338
Federal funds sold and other		415,437		167,664		785,112		256,970
Total interest income		28,304,640		10,543,815		45,115,036		19,810,693
Interest expense:
Deposits		9,563,035		2,877,229		15,413,344		5,031,190
Securities sold under agreements to repurchase		678,177		253,121		1,186,965		403,383
Federal funds purchased and other borrowings		1,168,265		618,274		2,112,761		1,080,812
Total interest expense		11,409,477		3,748,624		18,713,070		6,515,385
Net interest income		16,895,163		6,795,191		26,401,966		13,295,308
Provision for loan losses		1,706,865		482,690		2,094,049		1,083,940
Net interest income after provision for loan losses		15,188,298		6,312,501		24,307,917		12,211,368
Noninterest income:
Service charges on deposit accounts		1,356,114		241,436		1,794,384		503,136
Investment sales commissions		652,900		491,453		1,166,497		928,877
Insurance sales commissions		748,534		-		1,013,362		-
Gain on loans and loan participations sold, net		470,809		390,261		795,355		550,816
Trust fees		311,997		-		363,997		-
Gain on sales of investment securities, net		-		-		-		114,410
Other noninterest income		839,771		289,915		1,294,781		496,481
Total noninterest income		4,380,125		1,413,065		6,428,376		2,593,720
Noninterest expense:
Compensation and employee benefits		7,289,996		3,110,718		11,738,354		6,081,276
Equipment and occupancy		1,911,804		893,938		2,991,059		1,677,963
Marketing and other business development		357,904		179,715		548,375		292,883
Postage and supplies		445,211		158,396		630,619		293,934
Other noninterest expense		2,178,910		620,452		3,161,302		1,198,037
Merger related expense		921,237		-		1,364,567		-
Total noninterest expense		13,105,062		4,963,219		20,434,276		9,544,093
Income before income taxes		6,463,361		2,762,347		10,302,017		5,260,995
Income tax expense		2,140,887		803,178		3,367,647		1,522,073
Net income	$	4,322,474	$	1,959,169	$	6,934,370	$	3,738,922
Per share information:
Basic net income per common share	$	0.28	$	0.23	$	0.56	$	0.45
Diluted net income per common share	$	0.26	$	0.21	$	0.51	$	0.40
Weighted average shares outstanding:
Basic		15,335,754		8,401,198		12,473,187		8,395,260
Diluted		16,503,692		9,434,260		13,640,565		9,435,754

Page 9

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

(dollars in thousands)	Three months ended June 30, 2006							Three months ended June 30, 2005
	Average Balances		Interest		Rates/ Yields			Average Balances		Interest		Rates/ Yields
Interest-earning assets:
Loans	$	1,328,121	$	24,246		7.32	%	$	537,313	$	8,002		5.98	%
Securities:
Taxable		248,682		3,148		5.08	%		194,840		2,135		4.39	%
Tax-exempt (1)		50,227		495		5.21	%		27,332		239		4.62	%
Federal funds sold		16,613		259		6.05	%		14,879		111		2.99	%
Other		8,319		157		9.08	%		3,730		57		7.08	%
Total interest-earning assets		1,651,962		28,305		6.92	%		778,094		10,544		5.48	%
Nonearning assets		226,950							44,250
Total assets	$	1,878,912						$	822,344
Interest-bearing liabilities:
Interest bearing deposits
Interest checking	$	190,055	$	848		1.79	%	$	57,652	$	90		0.62	%
Savings and money market		434,094		3,234		2.99	%		218,685		906		1.66	%
Certificates of deposit		546,715		5,481		4.02	%		252,402		1,882		2.99	%
Total interest-bearing deposits		1,170,864		9,563		3.28	%		528,739		2,878		2.18	%
Securities sold under agreements to repurchase		68,079		678		4.00	%		49,883		253		2.04	%
Federal funds purchased		3,696		48		5.15	%		4,775		40		3.38	%
Federal Home Loan Bank advances		44,417		605		5.46	%		54,951		424		3.10	%
Subordinated debt		30,929		516		6.69	%		10,310		154		5.98	%
Total interest-bearing liabilities		1,317,985		11,410		3.47	%		648,658		3,749		2.32	%
Noninterest-bearing deposits		311,286		-		-			111,937		-		-
Total deposits and interest-bearing liabilities		1,629,271		11,410		2.81	%		760,595		3,749		1.98	%
Other liabilities		15,241							2,180
Stockholders' equity		234,400							59,569
	$	1,878,912						$	822,344
Netinterestincome			$	16,895						$	6,795
Net interest spread (2)						3.45	%						3.16	%
Net interest margin (3)						4.17	%						3.57	%

(1)	Yields computed on tax-exempt instruments on a tax equivalent basis.
(2)	Yields realized on interest-earning assets less the rates paid on interest-bearing liabilities.
(3)	Net interest margin is the result of annualized net interest income divided by average interest-earning assets for the period.

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PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

(dollars in thousands)	Six months ended June 30, 2006							Six months ended June 30, 2005
	Average Balances		Interest		Rates/ Yields			Average Balances		Interest		Rates/ Yields
Interest-earning assets:
Loans	$	1,044,724	$	37,424		7.22	%	$	512,813	$	14,957		5.88	%
Securities:
Taxable		245,216		6,010		4.94	%		189,883		4,157		4.41	%
Tax-exempt (1)		47,399		896		5.04	%		25,329		440		4.62	%
Federal funds sold		19,617		540		5.55	%		11,864		157		2.66	%
Other		6,468		245		8.44	%		3,503		100		6.85	%
Total interest-earning assets		1,363,424		45,115		6.72	%		743,392		19,811		5.42	%
Nonearning assets		152,944							46,222
Total assets	$	1,516,368						$	789,614
Interest-bearing liabilities:
Interest bearing deposits
Interest checking	$	147,089	$	1,330		1.82	%	$	57,695	$	162		0.57	%
Savings and money market		389,473		5,574		2.89	%		220,382		1,604		1.47	%
Certificates of deposit		430,854		8,509		3.98	%		234,507		3,266		2.81	%
Total interest-bearing deposits		967,416		15,413		3.21	%		512,584		5,032		1.98	%
Securities sold under agreements to repurchase		63,901		1,187		3.75	%		44,016		403		1.85	%
Federal funds purchased		2,036		52		5.14	%		2,694		44		3.33	%
Federal Home Loan Bank advances		45,376		1,060		4.71	%		52,592		748		2.87	%
Subordinated debt		30,929		1,001		6.53	%		10,310		289		5.65	%
Total interest-bearing liabilities		1,109,658		18,713		3.40	%		622,196		6,516		2.11	%
Noninterest-bearing deposits		231,767		-		-			106,433		-		-
Total deposits and interest-bearing liabilities		1,341,425		18,713		2.81	%		728,629		6,516		1.80	%
Other liabilities		9,976							1,990
Stockholders' equity		164,967							58,995
	$	1,516,368						$	789,614
Netinterestincome			$	26,402						$	13,295
Net interest spread (2)						3.32	%						3.31	%
Net interest margin (3)						3.97	%						3.67	%

(1)	Yields computed on tax-exempt instruments on a tax equivalent basis.
(2)	Yields realized on interest-earning assets less the rates paid on interest-bearing liabilities.
(3)	Net interest margin is the result of annualized net interest income divided by average interest-earning assets for the period.

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PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

(dollars in thousands, except per share data)	Jun 2006			Mar 2006			Dec 2005			Sept 2005			June 2005			Mar 2005
Balance sheet data, at quarter end:
Total assets	$	1,985,625			1,828,212			1,016,772			978,539			872,076			787,436
Total loans		1,358,273			1,235,170			648,024			604,225			556,786			516,733
Allowance for loan losses		(14,686	)		(13,354	)		(7,858	)		(7,231	)		(6,659	)		(6,198	)
Securities		305,642			315,473			279,080			246,914			227,938			202,223
Noninterest-bearing deposits		312,709			263,701			155,811			154,440			142,794			119,212
Total deposits		1,559,885			1,415,778			810,151			788,628			689,919			619,021
Securities sold under agreements to repurchase		104,380			63,912			65,834			67,652			57,677			46,388
Advances from FHLB		33,749			67,267			41,500			24,500			49,500			51,500
Subordinated debt		30,929			30,929			30,929			30,929			10,310			10,310
Total stockholders’ equity		238,739			236,327			63,436			62,883			61,501			57,657
Balance sheet data, quarterly averages:
Total assets	$	1,878,912			1,153,823			986,106			914,801			822,344			756,884
Total loans		1,328,121			761,326			634,175			587,902			537,313			488,313
Securities		298,909			286,321			273,487			240,525			222,172			208,253
Total earning assets		1,651,962			1,074,885			937,357			866,706			778,094			708,690
Noninterest-bearing deposits		311,286			152,247			136,143			125,447			111,937			100,929
Total deposits		1,482,150			763,967			796,792			730,446			640,676			597,358
Securities sold under agreements to repurchase		68,079			59,723			67,874			63,337			49,883			38,149
Advances from FHLB		44,417			46,336			22,663			41,456			54,951			50,233
Subordinated debt		30,929			30,929			30,929			13,896			10,310			10,310
Total stockholders’ equity		234,400			95,535			63,199			62,338			59,569			58,420
Statement of operations data, for the three months ended:
Interest income	$	28,305			16,811			14,118			12,378			10,544			9,270
Interest expense		11,410			7,304			5,831			4,923			3,749			2,767
Net interest income		16,895			9,507			8,287			7,455			6,795			6,503
Provision for loan losses		1,707			387			702			366			483			601
Net interest income after provision for loan losses		15,188			9,120			7,585			7,089			6,312			5,902
Noninterest income		4,380			2,048			1,501			1,299			1,413			1,178
Noninterest expense		13,105			7,329			5,967			5,521			4,963			4,581
Income before taxes		6,463			3,839			3,119			2,867			2,762			2,499
Income tax expense		2,141			1,227			881			789			803			719
Net income	$	4,322			2,612			2,238			2,078			1,959			1,780
Per share data:
Earnings - basic	$	0.28			0.27			0.27			0.25			0.23			0.21
Earnings - diluted	$	0.26			0.24			0.24			0.22			0.21			0.19
Book value at quarter end (1)	$	15.53			15.45			7.53			7.47			7.32			6.87
Weighted avg. shares - basic		15,335,754			9,578,813			8,425,717			8,417,980			8,401,198			8,389,256
Weighted avg. shares - diluted		16,503,692			10,745,626			9,490,447			9,495,187			9,434,260			9,437,183
Common shares outstanding		15,370,116			15,300,629			8,426,551			8,424,217			8,405,891			8,391,371
Capital ratios (2):
Stockholders’ equity to total assets		12.0	%		12.9	%		6.2	%		6.4	%		7.1	%		7.3	%
Leverage		8.0	%		14.7	%		9.3	%		9.3	%		8.8	%		9.2	%
Tier one risk-based		9.5	%		10.4	%		11.0	%		10.9	%		10.0	%		10.6	%
Total risk-based		10.4	%		11.9	%		11.9	%		13.0	%		10.9	%		11.5	%
Investor information:
Closing sales price	$	30.43			27.44			24.98			25.18			24.00			20.72
High sales price during quarter	$	30.92			28.84			25.96			26.65			25.14			24.05
Low sales price during quarter	$	27.09			24.87			21.70			22.67			20.50			20.72

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PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

(dollars in thousands, except per share data)	June  2006			Mar 2006			Dec 2005			Sept 2005			June 2005			Mar 2005
Performance ratios and other data:
Return on avg. assets (3)		0.92	%		0.92	%		0.90	%		0.90	%		0.96	%		0.96	%
Return on avg. equity (3)		7.40	%		11.09	%		14.05	%		13.23	%		13.21	%		12.48	%
Net interest margin (4)		4.17	%		3.65	%		3.58	%		3.48	%		3.57	%		3.78	%
Noninterest income to total revenue (5)		20.6	%		17.7	%		15.3	%		14.8	%		17.2	%		15.3	%
Noninterest income to avg. assets (3)		0.94	%		0.72	%		0.60	%		0.56	%		0.69	%		0.62	%
Noninterest exp. to avg. assets (3)		2.80	%		2.58	%		2.40	%		2.39	%		2.42	%		2.42	%
Efficiency ratio (6)		61.6	%		63.4	%		61.0	%		63.1	%		60.4	%		59.6	%
Avg. loans to average deposits		89.6	%		83.1	%		79.7	%		80.5	%		83.9	%		81.7	%
Securities to total assets		15.4	%		17.3	%		27.4	%		25.2	%		26.1	%		25.7	%
Average interest-earning assets to average interest-bearing liabilities		125.3	%		119.3	%		117.7	%		119.8	%		120.0	%		119.0	%
Brokered time deposits to total deposits		5.0	%		3.3	%		6.6	%		7.2	%		8.6	%		8.3	%
Selected growth rates, last twelve months (7):
Total average assets		128.5	%		52.4	%		39.5	%		47.9	%		48.6	%		48.9	%
Average loans		147.2	%		55.9	%		41.5	%		49.9	%		56.2	%		59.3	%
Total average deposits		114.2	%		53.9	%		41.5	%		50.5	%		46.3	%		48.4	%
Total revenue (5)		159.1	%		50.4	%		30.1	%		27.0	%		46.6	%		45.4	%
Total noninterest expense		164.0	%		60.0	%		44.6	%		40.9	%		41.9	%		38.0	%
Diluted earnings per share		23.8	%		26.3	%		33.3	%		37.5	%		50.0	%		46.2	%
Asset quality information and ratios:
Nonaccrual loans and other real estate	$	2,867			1,201			460			61			596			596
Past due loans over 90 days and still accruing interest	$	492			-			-			8			66			47
Net loan charge-offs (recoveries) (8)	$	441			(73	)		76			(206	)		22			53
Allowance for loan losses to total loans		1.08	%		1.08	%		1.21	%		1.20	%		1.20	%		1.20	%
As a percentage of total loans and ORE:
Past due loans over 30 days		0.25	%		0.52	%		0.58	%		0.10	%		0.21	%		0.27	%
Nonperforming assets		0.21	%		0.10	%		0.07	%		0.01	%		0.11	%		0.12	%
Potential problem loans (9)		0.31	%		0.63	%		0.20	%		0.37	%		0.18	%		0.08	%
Annualized net loan charge-offs (recoveries) to avg. loans (10)		0.07	%		(0.04	)%		(0.01	)%		(0.03	)%		0.02	%		0.04	%
Avg. commercial loan internal risk ratings (9)		4.1			4.1			3.8			3.9			3.8			3.8
Avg. loan account balances (11)	$	115			105			180			172			171			162
Interest rates and yields:
Loans		7.32	%		7.02	%		6.72	%		6.40	%		5.98	%		5.78	%
Securities		5.10	%		4.80	%		4.58	%		4.40	%		4.42	%		4.44	%
Federal funds sold and other		7.09	%		5.54	%		4.83	%		3.72	%		3.90	%		3.41	%
Total earning assets		6.92	%		6.39	%		6.03	%		5.73	%		5.48	%		5.34	%
Total deposits, including non-interest bearing		2.59	%		2.59	%		2.34	%		2.16	%		1.80	%		1.46	%
Securities sold under agreements to repurchase		4.00	%		3.46	%		2.99	%		2.50	%		2.04	%		1.60	%
Federal funds purchased and FHLB advances		5.44	%		3.99	%		2.50	%		3.22	%		3.12	%		2.61	%
Subordinated debt		6.69	%		6.36	%		6.14	%		6.22	%		5.98	%		5.32	%
Total deposits and other interest-bearing liabilities		2.81	%		2.81	%		2.52	%		2.30	%		1.98	%		1.61	%

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PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

(dollars in thousands, except per share data)	June 2006			Mar 2006			Dec 2005			Sept 2005			June 2005			Mar 2005
Other information:
Gains (losses) on sale of loans and loan participations sold:
Mortgage loan originations:
Gross loans originated	$	40,862			24,034			31,792			31,066			27,239			21,360
Gross fees (12)	$	668			389			485			533			419			364
Gross fees as a percentage of mortgage loans originated		1.63	%		1.62	%		1.53	%		1.72	%		1.54	%		1.70	%
Loan participations sold	$	49			74			41			(26	)		152			(15	)
Gains on sales of investment securities, net		-			-			-			-			-			114
Brokerage account assets, at quarter-end (13)	$	501,000			470,000			441,000			428,000			419,000			400,000
Floating rate loans as a percentage of loans (14)		47.0	%		48.5	%		53.5	%		56.2	%		55.9	%		55.5	%
Balance of commercial loan participations sold to other banks and serviced by Pinnacle, at quarter end	$	80,359			73,171			60,282			55,257			62,034			55,238
Core deposits to total funding (15)		70.7	%		68.1	%		59.5	%		60.7	%		57.3	%		58.7	%
Total assets per full-time equivalent employee	$	5,531			4,968			6,498			6,396			5,952			5,988
Annualized revenues per full-time equivalent employee	$	237.0			205.0			250.2			228.9			227.0			233.6
Number of employees (full-time equivalent)		359.0			368.0			156.5			153.0			146.5			131.5
Associate retention rate (16)		94.7	%		93.2	%		94.3	%		95.5	%		96.6	%		99.2	%

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PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

	As of and for the three months ended
(dollars in thousands, except per share data)	June 30, 2006			June 30, 2005
Reconciliation of Non-GAAP measures:
Tangible assets:
Total assets	$	1,985,625		$	872,076
Less: Goodwill		(115,835	)		-
Core deposit intangible		(12,455	)		-
Net tangible assets	$	1,857,335		$	872,076
Tangible equity:
Total stockholders’ equity	$	238,739		$	61,501
Less: Goodwill		(115,835	)		-
Core deposit intangible		(12,455	)		-
Net tangible equity	$	110,449		$	61,501
Tangible average assets:
Total average assets	$	1,878,912		$	822,344
Less: Average goodwill		(115,727	)		-
Average core deposit intangible		(12,779	)		-
Net tangible average assets	$	1,750,406		$	822,344
Tangible average equity:
Total average stockholders’ equity	$	234,400		$	59,569
Less: Average goodwill		(115,727	)		-
Average core deposit intangible		(12,779	)		-
Net tangible average stockholders’ equity	$	105,894		$	59,569
Net income	$	4,322		$	1,959
Impact of merger related expense, net of tax (17)		560			-
Net income before impact of merger related expense	$	4,882		$	1,959
Fully-diluted earnings per share before impact of merger related expense	$	0.30		$	0.21
Tangible equity divided by tangible assets		5.95	%		7.05	%
Tangible equity per common share	$	7.19		$	7.32
Return on tangible average assets (annualized)		0.98	%		0.96	%
Impact of merger related expense, net of tax (annualized)		0.13	%		-
Return on tangible average assets before impact of merger related expense (annualized)		1.11	%		0.96	%
Return on tangible average stockholders’ equity (annualized)		16.37	%		13.21	%
Impact of merger related expense, net of tax		2.11	%		-
Return on tangible average stockholders’ equity before impact of merger related expense (annualized)		18.49	%		13.21	%
Efficiency ratio		61.6	%		60.4	%
Impact of merger related expense		(4.3	)%		-
Efficiency ratio before impact of merger related expense		57.3	%		60.4	%

Page 15

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES

SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

	Anticipated Earnings Estimate Ranges
	Third Quarter 2006				Year ended December 31, 2006
	Low		High		Low		High
Projected 2006 EPS Reconciliation Excluding   Impact of Merger Related Expense:
Estimated diluted earnings per share	$	0.31	$	0.32	$	1.14	$	1.18
Add: Projected merger related expense		-	$	0.01	$	0.07	$	0.08
Adjusted estimated diluted earnings per share to exclude merger related expense	$	0.31	$	0.33	$	1.21	$	1.26

(1)	Book value per share computed by dividing total stockholders’ equity by common shares outstanding
(2)	Capital ratios are for Pinnacle Financial Partners, Inc. and are defined as follows:
	Equity to total assets - End of period total stockholders’ equity as a percentage of end of period assets.
	Leverage - Tier one capital (pursuant to risk-based capital guidelines) as a percentage of adjusted average assets.
	Tier one risk-based - Tier one 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.
(3)	Ratios are presented on an annualized basis.
(4)	Net interest margin is the result of net interest income on a tax equivalent basis divided by average interest earning assets.
(5)	Total revenue is equal to the sum of net interest income and noninterest income.
(6)	Efficiency ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income.
(7)	Growth rates are calculated by dividing amounts for the current quarter by the same quarter of the previous year.
(8)	During the fourth quarter of 2004, the Company incurred two large commercial charge-offs of approximately $850,000 which had been previously on nonaccruing status. During the third quarter of 2005, the Company recorded a recovery of $230,000 related to one of these commercial loans.
(9)	Average risk ratings are based on an internal loan review system which assigns a numeric value of 1 to 10 to all loans to commercial entities based on their underlying risk characteristics as of the end of each quarter. A “1” risk rating is assigned to credits that exhibit Excellent risk characteristics, “2” exhibit Very Good risk characteristics, “3” Good, “4” Satisfactory, “5” Acceptable or Average, “6” Watch List, “7” Criticized, “8” Classified or Substandard, “9” Doubtful and “10” Loss (which are charged-off immediately). Additionally, loans rated “8” or worse are considered potential problem loans. Potential problem loans do not include nonperforming loans. Generally, consumer loans are not subjected to internal risk ratings.
(10)	Annualized net loan charge-offs to average loans ratios are computed by annualizing year-to-date net loan charge-offs and dividing the result by average loans for the year-to-date period.
(11)	Computed by dividing the balance of all loans by the number of loan accounts as of the end of each quarter.
(12)	Amounts are included in the statement of income in “Gains on the sale of loans and loan participations sold.”
(13)	At fair value, based on information obtained from Pinnacle’s third party broker/dealer for non-FDIC insured financial products and services.
(14)	Floating rate loans are those loans that are eligible for repricing on a daily basis subject to changes in Pinnacle’s prime lending rate or other factors.
(15)	Core deposits include all transaction deposit accounts, money market and savings accounts and all certificates of deposit issued in a denomination of less than $100,000. 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.
(16)	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 for the Nashville associates and since March 15, 2006 for the Murfreesboro associates by the number of associates employed at quarter-end.
(17)	Represents merger related expenses of $921,000, net of income tax benefit of $361,000 for second quarter of 2006.

Page 16