FOR IMMEDIATE RELEASE

MEDIA CONTACT:Vicki Kessler 615-320-7532

FINANCIAL CONTACT: Harold Carpenter 615-744-3742

WEBSITE:www.pnfp.com

PINNACLE FINANCIAL REPORTS RECORD EARNINGS

Diluted earnings per share excluding merger related charges

exceed I/B/E/S consensus estimate

NASHVILLE, Tenn., Oct. 17, 2006 - Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) today reported record earnings and superior credit quality for the quarter ended Sept. 30, 2006. Fully diluted earnings per share of $0.32 for the quarter included the impact of merger related expenses of $0.01 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 $0.33 for the quarter ended Sept. 30, 2006, compared to $0.22 fully diluted earnings per share for the quarter ended Sept. 30, 2005, an increase of 50 percent.

Fully diluted earnings per share of $0.84 for the nine months ended Sept. 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 $0.90 for the nine months ended Sept. 30, 2006, compared to $0.62 fully diluted earnings per share for the nine months ended Sept. 30, 2005, an increase of 45 percent.

THIRD QUARTER 2006 HIGHLIGHTS:

·   Record earnings:

o   Record net income for the third quarter of 2006 of $5.35 million, up 157 percent from the prior year’s third quarter net income of $2.08 million.

o   Record diluted earnings per share for the third quarter of 2006 of $0.32, up almost 45 percent from the same quarter last year. Diluted earnings per share exclusive of merger related expenses were $0.33, up 50 percent from

Pinnacle Reports Record Earnings - 2 of 8

the prior year’s third quarter diluted earnings per share of $0.22. Fully diluted earnings per share exclusive of merger related charges for the quarter ended Sept. 30, 2006, were $0.33 exceeding the I/B/E/S consensus estimate of $0.32 per fully diluted share.

o   Revenue (the sum of net interest income and noninterest income) for the quarter ended Sept. 30, 2006, amounted to $21.58 million, compared to $8.75 million for the same quarter of last year, an increase of 147 percent.

o   Return on average tangible stockholders’ equity (average stockholders’ equity less goodwill and core deposit intangibles) before impact of merger related expense was 18.41 percent for the quarter ended Sept. 30, 2006, compared to 13.23 percent for the same quarter last year.

·   Superior credit quality:

o   Nonperforming assets were only 0.25 percent of total loans at Sept. 30, 2006.

o   Past due loans over 30 days, excluding nonperforming loans, were only 0.69 percent of total loans at Sept. 30, 2006.

·   Strong balance sheet growth:

o   Loans at Sept. 30, 2006, were $1.405 billion, up 133 percent from the same period last year, reflecting strong organic growth and the impact of the Cavalry merger. Net loans increased by $47 million between the second and third quarters of 2006. Excluding the $551 million in loans added in conjunction with the Cavalry merger on March 15, 2006, net loans have increased $207 million during the first nine months of this year, an increase of 57 percent over the $132 million in combined growth for the two companies the first nine months of 2005 prior to the merger.

o   Total deposits at Sept. 30, 2006, were $1.59 billion, up 101 percent from the same period last year. Noninterest bearing demand deposit accounts, which represent 19.3 percent of total deposits, were up 98 percent from the same period last year, reflecting strong organic growth and the impact of the Cavalry merger.

Pinnacle Reports Record Earnings - 3 of 8

o   Subordinated indebtedness of $20.6 million issued in connection with Pinnacle’s most recent trust preferred securities offering. The issuance of these securities increased Pinnacle’s regulatory capital ratios at Sept. 30, 2006.

“The continued growth and strength of Middle Tennessee’s economy, coupled with our ability to attract and retain the best financial professionals in the market, have led to another exceptional quarter of performance,” said M. Terry Turner, Pinnacle’s president and CEO.

EXTRAORDINARY GROWTH MAKES PINNACLE THE LARGEST NASHVILLE BANK

With its acquisition of Cavalry and dramatic organic loan and deposit growth during the first nine months of 2006, Pinnacle now has $2.052 billion in assets, making the company the largest financial services firm headquartered in Nashville and the second largest headquartered in Tennessee.

“We find that being the largest locally owned firm provides clients an attractive alternative in a market dominated by large regional and national franchises with longstanding market share loss trends. We are confident that our advantages will lead to our continued rapid growth,” said Turner.

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

FINANCIAL PERFORMANCE AND BALANCE SHEET GROWTH

·   Return on average assets for the quarter ended Sept. 30, 2006, was 1.07 percent. Return on average tangible assets (average total assets less goodwill and core deposit intangibles) for the quarter ended Sept. 30, 2006, was 1.15 percent. The return on average tangible assets exclusive of merger related items for the quarter ended June 30, 2006, was 1.18 percent, compared to 0.91 percent for the same quarter last year.

Pinnacle Reports Record Earnings - 4 of 8

·   Return on average stockholders’ equity for the quarter ended Sept. 30, 2006, was 8.66 percent. Return on average tangible stockholders’ equity (average total stockholders’ equity less goodwill and core deposit intangibles) for the quarter ended Sept. 30, 2006, was 17.97 percent. Return on average tangible stockholders’ equity exclusive of merger related expenses for the quarter ended Sept. 30, 2006, was 18.41 percent, compared to 13.23 percent for the same quarter last year.

Total assets grew to $2.052 billion as of Sept. 30, 2006, up $1.07 billion or 110 percent from the $979 million reported at Sept. 30, 2005. The $1.07 billion year over year increase in total assets was comprised of $277 million in organic asset growth at Pinnacle, $670 million in assets associated with the acquisition of Cavalry Bancorp and $127 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 Dec. 31, 2005, to 16.1 percent at Sept. 30, 2006.

CREDIT QUALITY

·   Provision for loan losses was $587,000 for the third quarter of 2006, compared to $366,000 in the third quarter of 2005. During the third quarter of 2006, the firm recorded net charge-offs of $101,000 compared to net recoveries of $206,000 during the same period in 2005.

o   Annualized net charge-offs to total loans were 0.05 percent for the nine months ended Sept. 30, 2006.

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

o   Nonperforming assets as a percentage of total loans and other real estate increased to 0.25 percent at Sept. 30, 2006, from 0.01 percent at Sept. 30, 2005.

Pinnacle Reports Record Earnings - 5 of 8

“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.”

REVENUE

·   Net interest income for the quarter ended Sept. 30, 2006, was $17.16 million, compared to $7.46 million for the quarter ended Sept. 30, 2005, an increase of 130 percent.

o   Net interest margin for the third quarter of 2006 was 3.95 percent, compared to a net interest margin of 4.17 percent reported for the second quarter of 2006 and 3.48 percent for the same period last year.

·   Noninterest income for the quarter ended Sept. 30, 2006, was $4.42 million, a 240 percent increase over the $1.30 million recorded during the same quarter in 2005.

“Consistent with our prior guidance of 3.90 percent to 4.10 percent, we anticipated that we would experience compression in our net interest margin in the third quarter,” said Harold Carpenter, chief financial officer of Pinnacle Financial Partners. “The slope of the yield curve and our maintaining more liquidity during the third quarter were the primary contributors to our compressed net interest margin. However, even with compression in our net interest margin, we believe we will experience growth in net interest income over the next few quarters based on anticipated loan growth.”

“Excluding the loans acquired in connection with the Cavalry acquisition in March, our net organic loan growth for the first nine months of this year has approximated $207 million,” Carpenter said. “This amount is consistent with our expectations and represents a 57 percent increase over the combined loan growth of the two companies for the first nine months of 2005, which was also a period of rapid growth for both companies prior to our merger. Our fourth quarter pipeline remains strong and barring any unplanned year-end pay downs, our current projections indicate our net loan growth for the fourth quarter will be consistent with our quarterly run rate of $50 million to $70 million.”

Pinnacle Reports Record Earnings - 6 of 8

Noninterest income during the third quarter of 2006 represented approximately 20.5 percent of total revenues, compared to 14.8 percent for the same quarter in 2005.

NONINTEREST EXPENSE

·   Noninterest expense for the quarter ended Sept. 30, 2006, was $13.05 million.

·   Merger related expenses incurred during the quarter ended Sept. 30, 2006, were $218,000. These charges consisted of direct and incremental integration costs incurred in connection with the merger. For the nine months ended Sept. 30, 2006, merger related expenses were approximately $1.6 million.

·   During the quarter ended Sept. 30, 2006, Pinnacle recognized compensation expense related to the expensing of stock options in accordance with Statement of Financial Accounting Standards No. 123R (“SFAS No. 123R”) of approximately $233,000 on an after-tax basis. For the nine months ended Sept. 30, 2006, the after-tax impact of SFAS No. 123R was approximately $591,000.

·   Amortization expense associated with the core deposit intangible recorded in connection with the merger of Cavalry was $535,000 for the three months ended Sept. 30, 2006, and $1.248 million for the nine months ended Sept. 30, 2006.

·   The efficiency ratio (noninterest expense divided by net interest income and noninterest income) was 60.5 percent during the third quarter of 2006. The efficiency ratio excluding merger related expenses was 59.5 percent during the third quarter of 2006, compared to 63.1 percent during the third quarter of 2005.

Pinnacle anticipates the opening of its new office in the Donelson area of Davidson County in early 2007. At Sept. 30, 2006, the firm employed 395.5 associates (full-time equivalent). Pinnacle anticipates adding 20 new associates during the fourth quarter of 2006.

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

Pinnacle Reports Record Earnings - 7 of 8

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.

Assessing the merger integration, Turner said, “We believe that our integration of Cavalry has been extraordinarily successful based on our four key measures of success:

1.   We achieved all major integration milestones on schedule (e.g., system conversions, brand conversions, etc.);

2.   We achieved 100 percent of the targeted expense savings;

3.   We have seen no degradation in client satisfaction with bank service quality during the entire integration as evidenced by our long-standing client survey methodology; and

4.   We have produced greater organic growth in the combined footprint in terms of loan and deposit volumes during the first nine months of 2006 than the two companies were able to produce on a combined basis in the first nine months of 2005.”

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 fourth quarter 2006 diluted earnings per share will approximate $0.33 to $0.35. The firm does not anticipate merger-related charges to be significant in the fourth quarter of 2006. Additionally, based on anticipated growth trends and future investments in the franchise, Pinnacle estimates its 2006 earnings will approximate $1.17 to $1.19 per fully diluted share and approximately $1.23 to $1.25 per fully diluted share, exclusive of merger-related expenses. For 2007, Pinnacle continues to estimate 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-

Pinnacle Reports Record Earnings - 8 of 8

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.

Pinnacle Financial Partners 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.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS – UNAUDITED
	September 30, 2006			December 31, 2005
ASSETS
Cash and noninterest-bearing due from banks	$	55,199,117		$	25,935,948
Interest-bearing due from banks		6,176,891			839,960
Federal funds sold		51,623,544			31,878,362
Cash and cash equivalents		112,999,552			58,654,270
Securities available-for-sale, at fair value		303,483,224			251,749,094
Securities held-to-maturity (fair value of $26,531,147 and $26,546,297 at September 30, 2006 and December 31, 2005, respectively)		27,275,651			27,331,251
Mortgage loans held-for-sale		8,960,447			4,874,323
Loans		1,405,401,429			648,024,032
Less allowance for loan losses		(15,172,446	)		(7,857,774	)
Loans, net		1,390,228,983			640,166,258
Premises and equipment, net		36,222,088			12,915,595
Investments in unconsolidated subsidiaries and other entities		11,278,614			6,622,645
Accrued interest receivable		10,455,981			4,870,197
Goodwill		115,064,500			-
Core deposit intangible		11,920,001			-
Other assets		24,363,133			9,588,097
Total assets	$	2,052,252,174		$	1,016,771,730
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand	$	306,296,117		$	155,811,214
Interest-bearing demand		199,967,210			72,520,757
Savings and money market accounts		481,684,245			304,161,625
Time		597,290,358			277,657,129
Total deposits		1,585,237,930			810,150,725
Securities sold under agreements to repurchase		122,354,264			65,834,232
Federal Home Loan Bank advances		28,739,443			41,500,000
Subordinated debt		51,548,000			30,929,000
Accrued interest payable		4,183,121			1,884,596
Other liabilities		11,130,028			3,036,752
Total liabilities		1,803,192,786			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; 15,409,341 issued and outstanding at September 30, 2006 and 8,426,551 issued and outstanding at December 31, 2005		15,409,341			8,426,551
Additional paid-in capital		210,752,785			44,890,912
Unearned compensation		0			(169,689	)
Retained earnings		25,455,618			13,182,291
Accumulated other comprehensive income (loss), net		(2,558,356	)		(2,893,640	)
Stockholders’ equity		249,059,388			63,436,425
Total liabilities and stockholders’ equity	$	2,052,252,174		$	1,016,771,730

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED
	Three Months Ended				Nine Months Ended
	September 30				September 30
	2006		2005		2006		2005
Interest income:
Loans, including fees	$	26,771,110	$	9,470,954	$	64,195,835	$	24,427,821
Securities:
Taxable		3,240,878		2,245,019		9,250,455		6,401,537
Tax-exempt		521,240		318,235		1,416,862		758,572
Federal funds sold and other		806,829		344,498		1,591,941		601,468
Total interest income		31,340,057		12,378,706		76,455,093		32,189,398
Interest expense:
Deposits		11,800,394		3,968,648		27,213,738		8,999,838
Securities sold under agreements to repurchase		1,382,418		399,731		2,569,383		803,114
Federal funds purchased and other borrowings		997,899		554,694		3,110,660		1,635,506
Total interest expense		14,180,711		4,923,073		32,893,781		11,438,458
Net interest income		17,159,346		7,455,633		43,561,312		20,750,940
Provision for loan losses		586,589		366,304		2,680,638		1,450,244
Net interest income after provision for loan losses		16,572,757		7,089,329		40,880,674		19,300,696
Noninterest income:
Service charges on deposit accounts		1,357,280		228,994		3,151,664		732,130
Investment sales commissions		644,931		474,354		1,811,428		1,403,231
Insurance sales commissions		549,584		-		1,562,946		-
Gain on loans and loan participations sold, net		490,254		348,577		1,285,609		899,393
Trust fees		311,997		-		675,994		-
Gain on sales of investment securities, net		-		-		-		114,410
Other noninterest income		1,069,811		247,208		2,364,592		743,689
Total noninterest income		4,423,857		1,299,133		10,852,233		3,892,853
Noninterest expense:
Compensation and employee benefits		7,576,011		3,410,436		19,314,365		9,491,712
Equipment and occupancy		2,070,727		1,034,661		5,325,274		2,712,624
Marketing and other business development		351,432		186,430		899,807		479,313
Postage and supplies		487,689		159,782		1,118,308		453,716
Amortization of core deposit intangible		534,957		-		1,248,335		-
Other noninterest expense		1,815,392		729,528		3,999,832		1,927,564
Merger related expense		218,167		-		1,582,734		-
Total noninterest expense		13,054,375		5,520,837		33,488,655		15,064,929
Income before income taxes		7,942,239		2,867,625		18,244,252		8,128,620
Income tax expense		2,595,465		789,382		5,963,112		2,311,455
Net income	$	5,346,774	$	2,078,243	$	12,281,140	$	5,817,165
Per share information:
Basic net income per common share	$	0.35	$	0.25	$	0.91	$	0.69
Diluted net income per common share	$	0.32	$	0.22	$	0.84	$	0.62
Weighted average shares outstanding:
Basic		15,393,735		8,417,980		13,450,282		8,402,916
Diluted		16,655,349		9,495,187		14,649,418		9,455,756

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
	Three months ended							Three months ended
(dollars in thousands)	September 30, 2006							September 30, 2005
	Average Balances		Interest		Rates/ Yields			Average Balances		Interest		Rates/ Yields
Interest-earning assets:
Loans	$	1,375,036	$	26,771		7.72	%	$	587,902	$	9,471		6.40	%
Securities:
Taxable		260,688		3,241		4.93	%		205,213		2,245		4.34	%
Tax-exempt (1)		56,644		521		4.81	%		35,312		318		4.72	%
Federal funds sold		51,075		685		5.32	%		34,204		282		3.27	%
Other		8,116		122		7.16	%		4,075		63		7.02	%
Total interest-earning assets		1,751,559	$	31,340		7.14	%		866,706	$	12,379		5.73	%
Nonearning assets		235,677							48,095
Total assets	$	1,987,236						$	914,801
Interest-bearing liabilities:
Interest bearing deposits
Interest checking	$	181,752	$	1,202		2.62	%	$	64,369	$	242		1.49	%
Savings and money market		473,883		3,809		3.19	%		266,327		1,408		2.10	%
Certificates of deposit		598,220		6,789		4.50	%		274,303		2,319		3.35	%
Total deposits		1,253,855		11,800		3.73	%		604,999		3,969		2.60	%
Securities sold under agreements to repurchase		122,292		1,382		4.49	%		63,337		400		2.50	%
Federal funds purchased		-		-		0.00	%		-		-		0.00	%
Federal Home Loan Bank advances		33,299		383		4.57	%		41,456		336		3.22	%
Subordinated debt		36,084		615		6.75	%		13,896		218		6.22	%
Total interest-bearing liabilities		1,445,530		14,180		3.89	%		723,688		4,923		2.72	%
Noninterest-bearing deposits		281,812		-		-			125,447		-		0
Total deposits and interest-bearing liabilities		1,727,342	$	14,180		3.26	%		849,135	$	4,923		2.30	%
Other liabilities		14,914							3,328
Stockholders' equity		244,980							62,338
	$	1,987,236						$	914,801
Netinterestincome			$	17,160						$	7,456
Net interest spread (2)						3.25	%						3.01	%
Net interest margin (3)						3.95	%						3.48	%

(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.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
	Nine months ended							Nine months ended
(dollars in thousands)	September 30, 2006							September 30, 2005
	Average Balances		Interest		Rates/ Yields			Average Balances		Interest		Rates/ Yields
Interest-earning assets:
Loans	$	1,154,828	$	64,196		7.43	%	$	537,842	$	24,428		6.08	%
Securities:
Taxable		250,373		9,250		4.94	%		194,993		6,401		4.39	%
Tax-exempt (1)		50,481		1,417		4.95	%		28,657		758		4.67	%
Federal funds sold		30,103		1,225		5.44	%		19,311		436		3.02	%
Other		7,017		367		7.95	%		3,694		166		6.92	%
Total interest-earning assets		1,492,802	$	76,455		6.89	%		784,497	$	32,189		5.53	%
Nonearning assets		180,522							46,846
Total assets	$	1,673,324						$	831,343
Interest-bearing liabilities:
Interest bearing deposits
Interest checking	$	158,643	$	2,532		2.13	%	$	59,919	$	403		0.90	%
Savings and money market		417,610		9,384		3.00	%		235,697		3,012		1.71	%
Certificates of deposit		486,642		15,298		4.20	%		247,773		5,585		3.01	%
Total deposits		1,062,895		27,214		3.42	%		543,389		9,000		2.21	%
Securities sold under agreements to repurchase		83,364		2,569		4.12	%		50,456		803		2.13	%
Federal funds purchased		41,351		52		5.11	%		1,796		45		3.31	%
Federal Home Loan Bank advances		32,647		1,443		4.66	%		48,880		1,084		2.97	%
Subordinated debt		1,358		1,615		6.62	%		11,506		506		5.89	%
Total interest-bearing liabilities		1,221,615		32,893		3.60	%		656,027		11,438		2.33	%
Noninterest-bearing deposits		248,448		-		-			112,771		-		-
Total deposits and interest-bearing liabilities		1,470,063	$	32,893		2.99	%		768,798	$	11,438		1.99	%
Other liabilities		11,623							2,436
Stockholders' equity		191,638							60,109
	$	1,673,324						$	831,343
Netinterestincome			$	43,562						$	20,751
Net interest spread (2)						3.29	%						3.20	%
Net interest margin (3)						3.97	%						3.60	%

(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.

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
	Sept			Jun			Mar			Dec			Sept			June
(dollars in thousands, except per share data)	2006			2006			2006			2005			2005			2005
Balance sheet data, at quarter end:
Total assets	$	2,052,252			1,985,625			1,828,212			1,016,772			978,539			872,076
Total loans		1,405,401			1,358,273			1,235,170			648,024			604,225			556,786
Allowance for loan losses		(15,172	)		(14,686	)		(13,354	)		(7,858	)		(7,231	)		(6,659	)
Securities		330,759			305,642			315,473			279,080			246,914			227,938
Noninterest-bearing deposits		306,296			312,709			263,701			155,811			154,440			142,794
Total deposits		1,585,238			1,559,885			1,415,778			810,151			788,628			689,919
Securities sold under agreements to repurchase		122,354			104,380			63,912			65,834			67,652			57,677
Advances from FHLB		28,739			33,749			67,267			41,500			24,500			49,500
Subordinated debt		51,548			30,929			30,929			30,929			30,929			10,310
Total stockholders’ equity		249,059			238,739			236,327			63,436			62,883			61,501
Balance sheet data, quarterly averages:
Total assets	$	1,987,236			1,878,912			1,153,823			986,106			914,801			822,344
Total loans		1,375,036			1,328,121			761,326			634,175			587,902			537,313
Securities		317,332			298,909			286,321			273,487			240,525			222,172
Total earning assets		1,751,559			1,651,962			1,074,885			937,357			866,706			778,094
Noninterest-bearing deposits		281,812			311,286			152,247			136,143			125,447			111,937
Total deposits		1,535,667			1,482,150			763,967			796,792			730,446			640,676
Securities sold under agreements to repurchase		122,292			68,079			59,723			67,874			63,337			49,883
Advances from FHLB		33,299			44,417			46,336			22,663			41,456			54,951
Subordinated debt		36,084			30,929			30,929			30,929			13,896			10,310
Total stockholders’ equity		244,980			234,400			95,535			63,199			62,338			59,569
Statement of operations data, for the three months ended:
Interest income	$	31,340			28,305			16,811			14,118			12,378			10,544
Interest expense		14,181			11,410			7,304			5,831			4,923			3,749
Net interest income		17,159			16,895			9,507			8,287			7,455			6,795
Provision for loan losses		587			1,707			387			702			366			483
Net interest income after provision for loan losses		16,572			15,188			9,120			7,585			7,089			6,312
Noninterest income		4,424			4,380			2,048			1,501			1,299			1,413
Noninterest expense		13,054			13,105			7,329			5,967			5,521			4,963
Income before taxes		7,942			6,463			3,839			3,119			2,867			2,762
Income tax expense		2,595			2,141			1,227			881			789			803
Net income	$	5,347			4,322			2,612			2,238			2,078			1,959
Profitability and other ratios:
Return on avg. assets (1)		1.07	%		0.92	%		0.92	%		0.90	%		0.91	%		0.96	%
Return on avg. equity (1)		8.66	%		7.40	%		11.09	%		14.05	%		13.23	%		13.21	%
Net interest margin (2)		3.95	%		4.17	%		3.65	%		3.58	%		3.48	%		3.57	%
Noninterest income to total revenue (3)		20.50	%		20.60	%		17.70	%		15.30	%		14.80	%		17.20	%
Noninterest income to avg. assets (1)		0.89	%		0.94	%		0.72	%		0.60	%		0.56	%		0.69	%
Noninterest exp. to avg. assets (1)		2.63	%		2.80	%		2.58	%		2.40	%		2.39	%		2.42	%
Efficiency ratio (4)		60.50	%		61.60	%		63.40	%		61.00	%		63.10	%		60.40	%
Avg. loans to average deposits		89.50	%		89.60	%		83.10	%		79.70	%		80.50	%		83.90	%
Securities to total assets		16.10	%		15.40	%		17.30	%		27.40	%		25.20	%		26.10	%
Average interest-earning assets to average interest-bearing liabilities		121.20	%		125.30	%		119.30	%		117.70	%		119.80	%		120.00	%
Brokered time deposits to total deposits		4.50	%		5.00	%		3.30	%		6.60	%		7.20	%		8.60	%

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
	Sept			Jun			Mar			Dec			Sept			June
(dollars in thousands, except per share data)	2006			2006			2006			2005			2005			2005
Selected growth rates, last twelve months (5):
Total average assets		117.20	%		128.50	%		52.40	%		39.50	%		47.90	%		48.60	%
Average loans		133.90	%		147.20	%		55.90	%		41.50	%		49.90	%		56.20	%
Total average deposits		110.20	%		131.30	%		53.90	%		41.50	%		50.50	%		46.30	%
Total revenue (3)		146.50	%		159.10	%		50.40	%		30.10	%		27.00	%		46.60	%
Total noninterest expense		136.40	%		164.00	%		60.00	%		44.60	%		40.90	%		41.90	%
Diluted earnings per share		45.50	%		23.80	%		26.30	%		33.30	%		37.50	%		50.00	%
Loan portfolio balances, end of period:
Commercial real estate - mortgage	$	265,174			260,168			246,391			148,102			141,310			126,436
Commercial real estate - construction		152,627			164,049			162,867			30,295			29,942			29,954
Other commercial loans		554,617			503,797			410,059			239,129			225,525			214,209
Consumer real estate - mortgage		292,206			294,119			283,590			169,953			160,975			157,819
Consumer real estate - construction		87,890			86,978			84,381			37,372			28,611			9,218
Other consumer loans		52,887			49,162			47,882			23,173			17,862			19,150
Asset quality information and ratios:
Nonaccrual loans and other real estate	$	3,477			2,867			1,201			460			61			596
Past due loans over 90 days and still accruing interest	$	1,123			492			-			-			8			66
Net loan charge-offs (recoveries) (6)	$	101			441			(73	)		76			(206	)		22
Allowance for loan losses to total loans		1.08	%		1.08	%		1.08	%		1.21	%		1.20	%		1.20	%
As a percentage of total loans and ORE:
Past due loans over 30 days		0.69	%		0.25	%		0.52	%		0.58	%		0.10	%		0.21	%
Nonperforming assets		0.25	%		0.21	%		0.10	%		0.07	%		0.01	%		0.11	%
Potential problem loans (7)		0.77	%		0.31	%		0.63	%		0.20	%		0.37	%		0.18	%
Annualized net loan charge-offs (recoveries) to avg. loans (8)		0.05	%		0.07	%		(0.04	)%		(0.01	)%		(0.03	)%		0.02	%
Avg. commercial loan internal risk ratings (7)		4.1			4.1			4.1			3.8			3.9			3.8
Avg. loan account balances (9)	$	132			115			105			180			172			171
Interest rates and yields:
Loans		7.72	%		7.32	%		7.02	%		6.72	%		6.40	%		5.98	%
Securities		4.91	%		5.10	%		4.80	%		4.58	%		4.40	%		4.42	%
Federal funds sold and other		5.40	%		7.09	%		5.54	%		4.83	%		3.72	%		3.90	%
Total earning assets		7.14	%		6.92	%		6.39	%		6.03	%		5.73	%		5.48	%
Total deposits, including non-interest bearing		3.05	%		2.59	%		2.59	%		2.34	%		2.16	%		1.80	%
Securities sold under agreements to repurchase		4.49	%		4.00	%		3.46	%		2.99	%		2.50	%		2.04	%
Federal funds purchased and FHLB advances		4.57	%		5.46	%		3.99	%		2.50	%		3.22	%		3.12	%
Subordinated debt		6.75	%		6.69	%		6.36	%		6.14	%		6.22	%		5.98	%
Total deposits and interest-bearing liabilities		3.26	%		2.81	%		2.81	%		2.52	%		2.30	%		1.98	%

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
	Sept			Jun			Mar			Dec			Sept			June
(dollars in thousands, except per share data)	2006			2006			2006			2005			2005			2005
Per share data:
Earnings – basic	$	0.35			0.28			0.27			0.27			0.25			0.23
Earnings – diluted	$	0.32			0.26			0.24			0.24			0.22			0.21
Book value at quarter end (10)	$	16.16			15.53			15.45			7.53			7.47			7.32
Weighted avg. shares – basic		15,393,735			15,335,754			9,578,813			8,425,717			8,417,980			8,401,198
Weighted avg. shares – diluted		16,655,349			16,503,692			10,745,626			9,490,447			9,495,187			9,434,260
Common shares outstanding		15,409,341			15,370,116			15,300,629			8,426,551			8,424,217			8,405,891
Capital ratios (11):
Stockholders’ equity to total assets		12.1	%		12.0	%		12.9	%		6.2	%		6.4	%		7.1	%
Leverage		9.2	%		8.0	%		14.7	%		9.3	%		9.3	%		8.8	%
Tier one risk-based		10.6	%		9.5	%		10.4	%		11.0	%		10.9	%		10.0	%
Total risk-based		12.0	%		10.4	%		11.9	%		11.9	%		13.0	%		10.9	%
Investor information:
Closing sales price	$	35.80			30.43			27.44			24.98			25.18			24.00
High sales price during quarter	$	37.41			30.92			28.84			25.96			26.65			25.14
Low sales price during quarter	$	28.93			27.09			24.87			21.70			22.67			20.50
Other information:
Gains (losses) on sale of loans and loan participations sold:
Mortgage loan originations:
Gross loans originated	$	40,816			40,862			24,034			31,792			31,066			27,239
Gross fees (12)	$	679			668			389			485			533			419
Gross fees as a percentage of mortgage loans originated		1.66	%		1.63	%		1.62	%		1.53	%		1.72	%		1.54	%
Commercial loan participations sold	$	31			49			74			41			(26	)		152
Gains on sales of investment securities, net		-			-			-			-			-			-
Brokerage account assets, at quarter-end (13)	$	553,000			501,000			470,000			441,000			428,000			419,000
Floating rate loans as a percentage of loans (14)		47.3	%		47.0	%		48.5	%		53.5	%		56.2	%		55.9	%
Balance of commercial loan participations sold to other banks and serviced by Pinnacle, at quarter end	$	85,291			80,359			73,171			60,282			55,257			62,034
Core deposits to total funding (15)		63.70	%		63.80	%		68.10	%		59.50	%		60.70	%		57.30	%
Total assets per full-time equivalent employee	$	5,189			5,531			4,968			6,498			6,396			5,952
Annualized revenues per full-time equivalent employee	$	218.3			237.0			205.0			250.2			228.9			227.0
Number of employees (full-time equivalent)		395.5			359.0			368.0			156.5			153.0			146.5
Associate retention rate (16)		91.1	%		94.7	%		93.2	%		94.3	%		95.5	%		96.6	%

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY AND YEAR-TO-DATE FINANCIAL DATA – UNAUDITED
							As of September 30,			As of December 31,
(dollars in thousands, except per share data)							2006			2005
Reconciliation of Non-GAAP measures:
Tangible assets:
Total assets							$	2,052,252		$	1,016,772
Less:   Goodwill								(115,065	)		-
Core deposit intangible								(11,920	)		-
Net tangible assets							$	1,925,267		$	1,016,772
Tangible equity:
Total stockholders’ equity							$	249,059		$	63,436
Less:   Goodwill								(115,065	)		-
Core deposit intangible								(11,920	)		-
Net tangible equity							$	122,074		$	63,436
Tangible equity divided by tangible assets								6.34	%		6.24	%
Tangible equity per common share							$	7.92		$	7.53
		For the three months ended September 30,						For the nine months ended September 30,
(dollars in thousands, except per share data)		2006			2005			2006			2005
Average tangible assets:
Total average assets	$	1,987,236		$	914,801		$	1,673,324		$	831,343
Less:   Average goodwill		(113,683	)		-			(82,893	)		-
Average core deposit intangible		(12,265	)		-			(9,076	)		-
Net average tangible assets	$	1,861,288		$	914,801		$	1,581,355		$	831,343
Average tangible equity:
Total average stockholders’ equity	$	244,980		$	62,338		$	191,638		$	60,109
Less:   Average goodwill		(113,683	)		-			(82,893	)		-
Average core deposit intangible		(12,265	)		-			(9,076	)		-
Net average tangible stockholders’ equity	$	119,032		$	62,338		$	99,669		$	60,109
Net income	$	5,347		$	2,078		$	12,281		$	5,817
Impact of merger related expense, net of tax (17)		132			-			962			-
Net income before impact of merger related expense	$	5,479		$	2,078		$	13,243		$	5,817
Fully-diluted earnings per share before impact of merger related expense	$	0.33		$	0.22		$	0.90		$	0.62
Return on average tangible assets (annualized)		1.15	%		0.91	%		1.04	%		0.93	%
Impact of merger related expense, net of tax (annualized)		0.03	%		0.00	%		0.08	%		0.00	%
Return on average tangible assets before impact of merger related expense (annualized)		1.18	%		0.91	%		1.12	%		0.93	%
Return on average tangible stockholders’ equity (annualized)		17.97	%		13.23	%		16.43	%		12.90	%
Impact of merger related expense, net of tax		0.45	%		0.00	%		1.29	%		0.00	%
Return on average tangible stockholders’ equity before impact of merger related expense (annualized)		18.41	%		13.23	%		17.72	%		12.90	%
Efficiency ratio		60.5	%		63.1	%		61.5	%		61.1	%
Impact of merger related expense		1.0	%		0.0	%		2.9	%		0.0	%
Efficiency ratio before impact of merger related expense		59.5	%		63.1	%		58.6	%		61.1	%

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
	Anticipated Earnings Estimate Ranges
	Quarter ended December 31, 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	$	0.33	$	0.35	$	1.17	$	1.19
Add: Projected merger related expense		-		-		0.06		0.06
Adjusted estimated diluted earnings per share to exclude merger related expense	$	0.33	$	0.35	$	1.23	$	1.25

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.	Growth rates are calculated by dividing amounts for the current quarter by the same quarter of the previous year.
6.	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.
7.	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.
8.	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.
9.	Computed by dividing the balance of all loans by the number of loan accounts as of the end of each quarter.
10.	Book value per share computed by dividing total stockholders’ equity by common shares outstanding
11.	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.
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 $218,000, net of income tax benefit of $86,000 for third quarter of 2006 and merger related expense of $1,583,000, net of income tax benefit of $621,000 for the nine months ended September 30, 2006.