| Summary of Regulatory Capital Requirement |
Management believes, as of September 30, 2023, that Pinnacle Financial and Pinnacle Bank met all capital adequacy requirements to which they are subject. To be categorized as well-capitalized under applicable banking regulations, Pinnacle Bank must maintain certain total risk-based, Tier 1 risk-based, common equity Tier 1 and Tier 1 leverage ratios as set forth in the following table and not be subject to a written agreement, order or directive to maintain a higher capital level. The capital conservation buffer is not included in the required ratios of the table presented below. Pinnacle Financial's and Pinnacle Bank's actual capital amounts and resulting ratios, not including the applicable 2.5% capital conservation buffer, are presented in the following table (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Actual | | Minimum Capital
Requirement | | Minimum To Be Well-Capitalized (1) | | | Amount | Ratio | | Amount | Ratio | | Amount | Ratio | | At September 30, 2023 | | | | | | | | | | Total capital to risk weighted assets: | | | | | | | | | | Pinnacle Financial | $ | 5,060,635 | | 12.8 | % | | $ | 3,162,167 | | 8.0 | % | | $ | 3,952,709 | | 10.0 | % | | Pinnacle Bank | $ | 4,746,496 | | 12.0 | % | | $ | 3,152,420 | | 8.0 | % | | $ | 3,940,525 | | 10.0 | % | | Tier 1 capital to risk weighted assets: | | | | | | | | | | Pinnacle Financial | $ | 4,302,258 | | 10.9 | % | | $ | 2,371,625 | | 6.0 | % | | $ | 2,371,625 | | 6.0 | % | | Pinnacle Bank | $ | 4,417,120 | | 11.2 | % | | $ | 2,364,315 | | 6.0 | % | | $ | 3,152,420 | | 8.0 | % | | Common equity Tier 1 capital to risk weighted assets | | | | | | | | | | Pinnacle Financial | $ | 4,085,010 | | 10.3 | % | | $ | 1,778,719 | | 4.5 | % | | N/A | N/A | | Pinnacle Bank | $ | 4,416,997 | | 11.2 | % | | $ | 1,773,236 | | 4.5 | % | | $ | 2,561,341 | | 6.5 | % | | Tier 1 capital to average assets (*): | | | | | | | | | | Pinnacle Financial | $ | 4,302,258 | | 9.4 | % | | $ | 1,830,252 | | 4.0 | % | | N/A | N/A | | Pinnacle Bank | $ | 4,417,120 | | 9.7 | % | | $ | 1,827,027 | | 4.0 | % | | $ | 2,283,783 | | 5.0 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Actual | | Minimum Capital
Requirement | | Minimum To Be Well-Capitalized (1) | | At December 31, 2022 | | | | | | | | | | Total capital to risk weighted assets: | | | | | | | | | | Pinnacle Financial | $ | 4,584,292 | | 12.4 | % | | $ | 2,949,276 | | 8.0 | % | | $ | 3,686,595 | | 10.0 | % | | Pinnacle Bank | $ | 4,282,742 | | 11.6 | % | | $ | 2,941,082 | | 8.0 | % | | $ | 3,676,353 | | 10.0 | % | | Tier 1 capital to risk weighted assets: | | | | | | | | | | Pinnacle Financial | $ | 3,888,100 | | 10.5 | % | | $ | 2,211,957 | | 6.0 | % | | $ | 2,211,957 | | 6.0 | % | | Pinnacle Bank | $ | 4,015,550 | | 10.9 | % | | $ | 2,205,812 | | 6.0 | % | | $ | 2,941,082 | | 8.0 | % | | Common equity Tier 1 capital to risk weighted assets | | | | | | | | | | Pinnacle Financial | $ | 3,670,851 | | 10.0 | % | | $ | 1,658,968 | | 4.5 | % | | N/A | N/A | | Pinnacle Bank | $ | 4,015,427 | | 10.9 | % | | $ | 1,654,359 | | 4.5 | % | | $ | 2,389,629 | | 6.5 | % | | Tier 1 capital to average assets (*): | | | | | | | | | | Pinnacle Financial | $ | 3,888,100 | | 9.7 | % | | $ | 1,595,457 | | 4.0 | % | | N/A | N/A | | Pinnacle Bank | $ | 4,015,550 | | 10.1 | % | | $ | 1,591,502 | | 4.0 | % | | $ | 1,989,378 | | 5.0 | % |
(1) Well-capitalized minimum Common equity Tier 1 capital to risk weighted assets and Tier 1 capital to average assets are not formally defined under applicable banking regulations for bank holding companies. (*) Average assets for the above calculations were based on the most recent quarter.
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