EX-99.1 2 a1q24pnfpearningsrelease.htm EX-99.1 Document

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

PNFP REPORTS 1Q24 DILUTED EPS OF $1.57
Total revenues increased 32.1 percent linked-quarter annualized and 6.6 percent year-over-year

NASHVILLE, TN, April 22, 2024 - Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported net income per diluted common share of $1.57 for the quarter ended March 31, 2024, compared to net income per diluted common share of $1.76 for the quarter ended March 31, 2023, a decrease of 10.8 percent.
Several meaningful items impacted first quarter 2024 results. The firm’s allowance for credit losses increased to 1.12 percent of total loans at March 31, 2024, compared to 1.08 percent at Dec. 31, 2023. Although, key loan quality metrics like the potential problem loans to total loans ratio and the classified asset ratio remain better than many of the firm's peers and lower than where the firm has historically operated over the longer term, the firm determined additional reserves were needed to account for incremental weakness of one previously disclosed problem borrower and to better position the firm to navigate the credit implications of a higher-for-longer interest rate environment. Additionally, the firm recognized a mortgage servicing asset associated with its Freddie Mac Small Business Lending (SBL) platform of approximately $11.8 million, which has been reflected in other noninterest income. Lastly, in response to information provided by the FDIC during the quarter, the firm increased its other noninterest expense by $7.3 million for a FDIC special assessment. This is in addition to the $29.0 million that the company recognized in the fourth quarter of 2023.
"Inflation appears to be more difficult to tame than the Fed had predicted," said M. Terry Turner, Pinnacle's President and Chief Executive Officer. "Regardless of the economic landscape, our focus continues to be on strengthening our balance sheet and growing our earnings and tangible book value, while continuing to take steps that we believe will position our firm for long-term growth.
"We continued to execute our unique business model during the first quarter. We are reporting strong core earnings inclusive of a meaningful provision for credit losses. We recruited 37 new revenue producers during the quarter, including 14 in our newer markets of Atlanta, Washington D.C., Birmingham and Jacksonville. And as another demonstration of why we are so successful in hiring the best bankers in our markets, FORTUNE and Great Place to Work® recognized our firm as No. 11 on their list of the 100 Best Companies to Work For in the United States. We have been on FORTUNE’s top 100 list for the last eight years, but this is our highest ranking, further demonstrating the staying power of our culture, even as we have become a larger, high-growth bank.
"Our firm is uniquely positioned in what we believe are many of the best banking markets in the Southeast. As a result, combined with our distinctive operating model, we remain confident in our ability to generate long-term sustainable growth in loans, deposits and earnings in spite of the current economic volatility."


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BALANCE SHEET GROWTH AND LIQUIDITY:

Total assets at March 31, 2024, were $48.9 billion, an increase of approximately $934.3 million from Dec. 31, 2023, and $3.8 billion from March 31, 2023, reflecting a year-over-year increase of 8.4 percent and a linked-quarter annualized increase of 7.8 percent, respectively. A further analysis of select balance sheet trends follows:
Balances at Linked-Quarter
Annualized
% Change		Balances atYear-over-Year
% Change
(dollars in thousands)March 31, 2024December 31, 2023March 31, 2023
Loans$33,162,873 $32,676,091 6.0%$30,297,871 9.5%
Securities7,371,8477,323,8872.6%6,878,8317.2%
Other interest-earning assets3,195,211 2,673,235 78.1%3,201,938 (0.2)%
Total interest-earning assets$43,729,931 $42,673,213 9.9%$40,378,640 8.3%
Core deposits:
Noninterest-bearing deposits$7,958,739 $7,906,502 2.6%$9,018,439 (11.8)%
Interest-bearing core deposits(1)
26,679,87125,832,41513.1%23,035,672 15.8%
Noncore deposits and other funding(2)
7,506,4097,573,489(3.5)%6,865,003 9.3%
Total funding $42,145,019 $41,312,406 8.1%$38,919,114 8.3%
(1): Interest-bearing core deposits are interest-bearing deposits, money market accounts and time deposits less than $250,000 including reciprocating time and money market deposits.
(2): Noncore deposits and other funding consists of time deposits greater than $250,000, securities sold under agreements to repurchase, public funds, brokered deposits, FHLB advances and subordinated debt.
Three months ended
March 31, 2024December 31, 2023March 31, 2023
Average loan to deposit ratio84.73 %84.05 %83.97 %
Uninsured/uncollateralized deposits to total deposits(1)
30.48 %31.32 %33.23 %
(1): Includes the effect of placement of deposits through the IntraFi network.

•Approximately 46.5 percent of first quarter 2024 loan growth was related to commercial and industrial and owner-occupied commercial real estate categories, two segments the firm intends to continue to emphasize throughout the remainder of 2024.
•On-balance sheet liquidity, defined as cash and cash equivalents plus unpledged securities, remained strong, totaling $7.6 billion as of March 31, 2024, representing a $646.7 million increase from the on-balance sheet liquidity level of $6.9 billion as of Dec. 31, 2023. Increased deposit inflows during the quarter contributed to the increase in other interest earning assets and are expected to be used to fund future loan growth of the firm.
•Noninterest bearing deposits increased 2.6 percent on a linked-quarter annualized basis as of March 31, 2024, when compared to Dec. 31, 2023. In comparison to March 31, 2023, noninterest bearing deposits decreased by 11.8 percent. The average balance of the firm’s noninterest bearing accounts was $31,353 at March 31, 2024, compared to $31,603 at Dec. 31, 2023.

"We are particularly pleased with our strong deposit growth during the first quarter, which grew $862.2 million in the quarter, a 9.0 percent linked-quarter annualized growth rate," Turner said. "Importantly, our end-of-period noninterest-bearing demand deposit accounts grew 2.6 percent linked-quarter annualized after having experienced declining demand deposit volumes for several quarters. During the first quarter, our loans grew at an annualized rate of 6.0 percent, which is slightly below what we expect for all of 2024. While we are benefited by operating in several of the best banking markets in the Southeast, our loan and
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deposit growth is primarily a result of the market share movement associated with our ongoing hiring in those markets over the last several years."

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

Pre-tax, pre-provision net revenues (PPNR) for the three months ended March 31, 2024, were $185.8 million, a decrease of 2.2 percent from the $190.0 million recognized in the three months ended March 31, 2023.
Three months ended
March 31,
(dollars in thousands)20242023 % change
Revenues:
Net interest income$318,034 $312,231 1.9 %
Noninterest income110,103 89,529 23.0 %
Total revenues428,137 401,760 6.6 %
Noninterest expense242,365 211,727 14.5 %
Pre-tax, pre-provision net revenue (PPNR)185,772 190,033 (2.2)%
Adjustments:
ORE expense (benefit)84 99 (15.2)%
FDIC special assessment7,250 — NM
Recognition of mortgage servicing asset(11,812)— NM
Adjusted PPNR$181,294 $190,132 (4.6)%
Three months ended
March 31, 2024December 31, 2023March 31, 2023
Net interest margin3.04 %3.06 %3.40 %
Efficiency ratio56.61 %63.37 %52.70 %
Return on average assets1.00 %0.76 %1.26 %
Return on average tangible common equity (TCE)12.11 %9.53 %15.43 %
Average loan to deposit ratio84.73 %84.05 %83.97 %

•Revenue per fully diluted common share was $5.60 for the first quarter of 2024, compared to $5.16 for the fourth quarter of 2023 and $5.28 for the first quarter of 2023, an increase of 6.1 percent year-over-year.
•Net interest income for the first quarter of 2024, was $318.0 million, compared to $317.3 million for the fourth quarter of 2023 and $312.2 million for the first quarter of 2023, a year-over-year growth rate of 1.9 percent. Net interest margin was 3.04 percent for the first quarter of 2024, compared to 3.06 percent for the fourth quarter of 2023 and 3.40 percent for the first quarter of 2023.
•Noninterest income for the first quarter of 2024, was $110.1 million, compared to $79.1 million for the fourth quarter of 2023 and $89.5 million for the first quarter of 2023, a year-over-year increase of 23.0 percent.
◦Wealth management revenues, which include investment, trust and insurance services, were $26.0 million for the first quarter of 2024, compared to $23.5 million for the fourth quarter of 2023 and $22.5 million for the first quarter of 2023, a year-over-year increase of 15.7 percent. The increase in wealth management revenues was attributable to several factors, but primarily is the result of an increase in capacity with more revenue producers and the placement of those producers in Pinnacle’s newer markets like Washington D.C., Birmingham and others.
◦During the first quarter of 2024, net gains from mortgage loans sold were $2.9 million, compared to $879,000 in the fourth quarter of 2023 and $2.1 million in the first quarter of 2023. Similar to wealth management, the
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increase in mortgage fee income was primarily attributable to increases in capacity with more originators in Pinnacle's newer markets.
◦Income from the firm's investment in Banker's Healthcare Group (BHG) was $16.0 million for the first quarter of 2024, compared to $14.4 million for the fourth quarter of 2023 and $19.1 million for the first quarter of 2023, a year-over-year decline of 16.0 percent.
▪BHG's loan originations decreased to $692 million in the first quarter of 2024, compared to $786 million in the fourth quarter of 2023 and $1.0 billion in the first quarter of 2023.
▪Loans sold to BHG's community bank partners were approximately $533 million in the first quarter of 2024, compared to approximately $446 million in the fourth quarter of 2023 and $704 million in the first quarter of 2023.
▪BHG increased its reserves for on-balance sheet loan losses to $306 million, or 10.3 percent of loans held for investment at March 31, 2024, compared to 9.3 percent at Dec. 31, 2023 and 5.2 percent at March 31, 2023. The year-over-year increase in reserves as a percentage of loans held for investment was impacted by BHG's adoption for lifetime credit losses associated with its implementation of the current expected credit loss (CECL) methodology on Oct. 1, 2023.
▪BHG increased its accrual for estimated losses attributable to loan substitutions and prepayments to $391 million, or 5.7 percent of the unpaid loan balances that were previously purchased by BHG's community bank network, at March 31, 2024, compared to 5.4 percent, or $357 million, at Dec. 31, 2023 and 5.81 percent, or $350 million, at March 31, 2023.
◦Other noninterest income increased $24.1 million between the first quarter of 2024 and the fourth quarter of 2023 and $17.6 million from the first quarter of 2023. Impacting other noninterest income was approximately $11.8 million associated with the aforementioned recognition of the SBL mortgage servicing asset, as well as increased income from the firm’s Bank Owned Life Insurance (BOLI) policies compared to the first quarter of 2023. In the fourth quarter of 2023, the firm incurred approximately $7.2 million in policy surrender charges and $9.1 million in tax penalties attributable to restructuring BOLI policies. The firm believes the reimbursement ("payback") period from the date of the restructuring should approximate 18 months.
•Noninterest expense for the quarter ended March 31, 2024, was $242.4 million, compared to $251.2 million in the fourth quarter of 2023 and $211.7 million in the first quarter of 2023, reflecting a year-over-year increase of 14.5 percent.
◦Salaries and employee benefits were $146.0 million in the first quarter of 2024, compared to $133.3 million in the fourth quarter of 2023 and $135.7 million in the first quarter of 2023, reflecting a year-over-year increase of 7.6 percent.
▪Full-time equivalent associates increased to 3,386.5 at March 31, 2024 from 3,357.0 at Dec. 31, 2023 and 3,281.5 at March 31, 2023, a year-over-year increase of 3.2 percent.
▪Incentive costs in the first quarter of 2024 were approximately $1.7 million higher than the fourth quarter of 2023 and $1.1 million higher than the amounts recorded in the first quarter of 2023.
▪Employee benefits costs reflect the seasonality of payroll taxes, medical deductibles, and other benefits costs. Benefit costs in the first quarter of 2024 were approximately $5.5 million higher than the fourth quarter of 2023 and $898,000 higher than the amounts recorded in the first quarter of 2023.
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◦Equipment and occupancy costs were $39.6 million in the first quarter of 2024, compared to $38.0 million in the fourth quarter of 2023 and $30.4 million in the first quarter of 2023, reflecting a year-over-year increase of 30.6 percent. Impacting the quarterly changes in equipment and occupancy expense between the first quarter of 2024 compared to the fourth quarter of 2023 was the impact of new equipment and facilities annual rent escalators on various properties and equipment that have been placed into service. Compared to the first quarter of 2023, several factors contributed to the increase of equipment and occupancy costs, including new equipment and facilities, rent escalators on various properties and the previously disclosed sale-leaseback transaction executed in the second quarter of 2023.
◦Noninterest expense categories, other than those specifically noted above, were $56.7 million in the first quarter of 2024, compared to $79.8 million in the fourth quarter of 2023 and $45.7 million in the first quarter of 2023, reflecting a year-over-year increase of 24.2 percent. Primarily impacting the quarterly changes in other noninterest expense between the fourth quarter of 2023 and first quarter of 2024 was the impact of a reduction in the amount of FDIC special assessment charges in the first quarter of 2024 compared to the fourth quarter of 2023. The special assessment also impacted the comparison of other noninterest expense to the first quarter of 2023, given there was no special assessment last year.

"With the most recent CPI release, we have adjusted our forecast for Fed funds rate decreases from four to two with the first of those starting late in the third quarter of this year,” said Harold R. Carpenter, Pinnacle's Chief Financial Officer. "Therefore, we are modifying our net interest income outlook slightly for the year. Our belief is that we will experience 8 to 10 percent growth in net interest income for this year. As to fee income, we believe the strong start in the first quarter means our core fee revenues should be higher than originally anticipated for 2024. Accordingly, excluding the impact of BHG, the recognition of the $11.8 million of mortgage servicing rights in the first quarter of this year and, in the case of 2023, the $85.7 million gain on the sale of fixed assets as a result of the sale-leaseback transaction, $19.7 million in losses on sale of investments securities and $7.2 million in BOLI restructuring charges, we believe our growth in fee revenues should approximate 10 to 14 percent in 2024 over 2023.
"We continue to estimate that BHG fee income should approximate a mid-single digit percentage increase in 2024 over the $85.4 million in 2023. BHG's first quarter was impacted by the successful completion of their ninth securitization issuance of approximately $300 million. This securitization was comprised completely of consumer loans with a yield difference between the borrower's coupon rate and the securitization borrowing rate of approximately 10.1 percent, one of the highest spreads for a securitization by BHG in its history, reflective of the significant amount of interest BHG received for the transaction. BHG's ability to access the capital markets to secure incremental funding through securitizations of its held-for-investment loan portfolio has contributed to additional flexibility for BHG to fund its operations.
"Excluding the additional FDIC special assessment in the first quarter of 2024, our operating expense was in line with our expectations. We did reduce our anticipated incentive costs for the first quarter primarily as a result of increased provision expense triggered largely by the increase in our allowance for credit losses. We currently are accruing for payout on our annual cash incentive plan at approximately 80 percent of target, less than we had originally planned. Even through all of these matters, we are maintaining our expense outlook at $950 million to $975 million for the year, exclusive of the impact of the FDIC special assessments we incurred in the first quarter and any additional assessments the FDIC may decide to impose this year."

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CAPITAL AND SOUNDNESS:
As of
March 31, 2024December 31, 2023March 31, 2023
Shareholders' equity to total assets12.5 %12.6 %12.6 %
Tangible common equity to tangible assets8.5 %8.6 %8.3 %
Book value per common share$76.23 $75.80 $71.24 
Tangible book value per common share$51.98 $51.38 $46.75 
Annualized net loan charge-offs to avg. loans (1)
0.20 %0.17 %0.10 %
Nonperforming assets to total loans, ORE and other nonperforming assets (NPAs)0.33 %0.27 %0.15 %
Classified asset ratio (Pinnacle Bank) (2)
4.94 %5.22 %2.71 %
Construction and land development loans as a percentage of total capital(3)
77.50 %84.20 %88.50 %
Construction and land development, non-owner occupied commercial real estate and multi-family loans as a percentage of total capital(3)
258.00 %259.00 %261.10 %
Allowance for credit losses (ACL) to total loans 1.12 %1.08 %1.04 %
(1): Annualized net loan charge-offs to average loans ratios are computed by annualizing quarterly net loan charge-offs and dividing the result by average loans for the quarter.
(2): Classified assets as a percentage of Tier 1 capital plus allowance for credit losses.
(3): Calculated using the same guidelines as are used in the Federal Financial Institutions Examination Council's Uniform Bank Performance Report.

•The allowance and provision for credit losses both increased at March 31, 2024, over Dec. 31, 2023, and March 31, 2023, to account for incremental weakness of a certain borrower as well as better position the firm to navigate the credit implications of a higher-for-longer interest rate environment.
•Nonperforming assets increased at March 31, 2024, over Dec. 31, 2023, and March 31, 2023, primarily as a result of downgrading of two loans, one in the Company's construction portfolio and another in its C&I portfolio, each experiencing cash flow challenges at this time.
•Both of the firm’s ratios associated with construction and land development and CRE loans in comparison to total capital decreased from the prior quarter. Importantly, and consistent with the firm’s target of achieving a threshold of below 70 percent, the firm’s ratio of construction and land development in relation to total capital at March 31, 2024 showed continued progress and decreased to 77.5 percent.

"Net charge-offs to average loans for the first quarter of 2024 increased during the quarter to 0.20 percent from 0.17 percent in the prior quarter," Carpenter said. "We also experienced modest increases in nonperforming loans in relation to total loans and, conversely, we experienced improvement in similar ratios for past dues and potential problem loans. Net charge-offs at 0.20 percent compare favorably to longer-term historical levels, as do our ratios for nonperforming assets, past dues and potential problem loans. That said, we strive to be diligent with respect to monitoring our entire loan portfolio. A higher-for-longer rate environment coupled with stubborn inflation has required banks to maintain a higher level of caution with respect to credit. Accordingly, we now estimate net charge-offs for the firm may range between 0.20 percent and 0.25 percent of average loans for 2024.
"Also, during the quarter, we experienced an increase in book value per common share from $75.80 to $76.23, an annualized linked-quarter increase of 2.3 percent and an increase in tangible book value per common share from $51.38 at Dec. 31, 2023 to $51.98 at March 31, 2024, an annualized linked-quarter increase of 4.7 percent. As we've previously communicated, increasing our tangible book value per common share remains an important priority for our firm’s leadership."

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WEBCAST AND CONFERENCE CALL INFORMATION

Pinnacle will host a webcast and conference call at 8:30 a.m. CDT on April 23, 2024, to discuss first quarter 2024 results and other matters. To access the call for audio only, please call 1-877-209-7255. For the presentation and streaming audio, please access the webcast on the investor relations page of Pinnacle's website at www.pnfp.com.
For those unable to participate in the webcast, it will be archived on the investor relations page of Pinnacle's website at www.pnfp.com for 90 days following the presentation.
Pinnacle Financial Partners provides a full range of banking, investment, trust, mortgage and insurance products and services designed for businesses and their owners and individuals interested in a comprehensive relationship with their financial institution. The firm is the No. 1 and fastest growing bank in the Nashville-Murfreesboro-Franklin MSA, according to 2023 deposit data from the FDIC. Pinnacle is No. 11 on the 2024 list of 100 Best Companies to Work For® in the U.S., its eighth consecutive appearance and was recognized by American Banker as one of America's Best Banks to Work For 11 years in a row and No. 1 among banks with more than $10 billion in assets in 2023.
Pinnacle Bank owns a 49 percent interest in Bankers Healthcare Group (BHG), which provides innovative, hassle-free financial solutions to healthcare practitioners and other professionals. Great Place to Work and FORTUNE ranked BHG No. 4 on its 2021 list of Best Workplaces in New York State in the small/medium business category.
The firm began operations in a single location in downtown Nashville, TN in October 2000 and has since grown to approximately $48.9 billion in assets as of March 31, 2024. As the second-largest bank holding company in Tennessee, Pinnacle operates in several primarily urban markets across the Southeast.
Additional information concerning Pinnacle, which is included in the Nasdaq Financial-100 Index, can be accessed at www.pnfp.com.
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Forward-Looking Statements
All statements, other than statements of historical fact, included in this press release, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "expect," "anticipate," "intend," "may," "should," "plan," "believe," "seek," "estimate" and similar expressions are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, including, but not limited to: (i) deterioration in the financial condition of borrowers of Pinnacle Bank and its subsidiaries or BHG, including as a result of the negative impact of inflationary pressures and challenging economic conditions on our and BHG's customers and their businesses, resulting in significant increases in loan losses and provisions for those losses and, in the case of BHG, substitutions; (ii) fluctuations or differences in interest rates on loans or deposits from those that Pinnacle Financial is modeling or anticipating, including as a result of Pinnacle Bank's inability to better match deposit rates with the changes in the short-term rate environment, or that affect the yield curve; (iii) the sale of investment securities in a loss position before their value recovers, including as a result of asset liability management strategies or in response to liquidity needs; (iv) adverse conditions in the national or local economies including in Pinnacle Financial's markets throughout the Southeast region of the United States, particularly in commercial and residential real estate markets; (v) the inability of Pinnacle Financial, or entities in which it has significant investments, like BHG, to maintain the long-term historical growth rate of its, or such entities', loan portfolio; (vi) the ability to grow and retain low-cost core deposits and retain large, uninsured deposits, including during times when Pinnacle Bank is seeking to limit the rates it pays on deposits or uncertainty exists in the financial services sector; (vii) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (viii) effectiveness of Pinnacle Financial's asset management activities in improving, resolving or liquidating lower-quality assets; (ix) the impact of competition with other financial institutions, including pricing pressures and the resulting impact on Pinnacle Financial’s results, including as a result of the negative impact to net interest margin from rising deposit and other funding costs; (x) the results of regulatory examinations of Pinnacle Financial, Pinnacle Bank or BHG, or companies with whom they do business; (xi) BHG's ability to profitably grow its business and successfully execute on its business plans; (xii) risks of expansion into new geographic or product markets; (xiii) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including goodwill or other intangible assets; (xiv) the ineffectiveness of Pinnacle Bank's hedging strategies, or the unexpected counterparty failure or hedge failure of the underlying
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hedges; (xv) reduced ability to attract additional financial advisors (or failure of such advisors to cause their clients to switch to Pinnacle Bank), to retain financial advisors (including as a result of the competitive environment for associates) or otherwise to attract customers from other financial institutions; (xvi) deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xvii) inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies, required capital maintenance levels or regulatory requests or directives, particularly if Pinnacle Bank's level of applicable commercial real estate loans were to exceed percentage levels of total capital in guidelines recommended by its regulators; (xviii) approval of the declaration of any dividend by Pinnacle Financial's board of directors; (xix) the vulnerability of Pinnacle Bank's network and online banking portals, and the systems of parties with whom Pinnacle Bank contracts, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; (xx) the possibility of increased compliance and operational costs as a result of increased regulatory oversight (including by the Consumer Financial Protection Bureau), including oversight of companies in which Pinnacle Financial or Pinnacle Bank have significant investments, like BHG, and the development of additional banking products for Pinnacle Bank's corporate and consumer clients; (xxi) Pinnacle Financial's ability to identify potential candidates for, consummate, and achieve synergies from, potential future acquisitions; (xxii) difficulties and delays in integrating acquired businesses or fully realizing costs savings and other benefits from acquisitions; (xxiii) the risks associated with Pinnacle Bank being a minority investor in BHG, including the risk that the owners of a majority of the equity interests in BHG decide to sell the company or all or a portion of their ownership interests in BHG (triggering a similar sale by Pinnacle Bank); (xxiv) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, like BHG, including regulatory or legislative developments; (xxv) fluctuations in the valuations of Pinnacle Financial's equity investments and the ultimate success of such investments; (xxvi) the availability of and access to capital; (xxvii) adverse results (including costs, fines, reputational harm, inability to obtain necessary approvals and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions involving Pinnacle Financial, Pinnacle Bank or BHG; and (xxviii) general competitive, economic, political and market conditions. Additional factors which could affect the forward looking statements can be found in Pinnacle Financial's Annual Report on Form 10-K for the year ended December 31, 2023, and subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC and available on the SEC's website at http://www.sec.gov. Pinnacle Financial disclaims any obligation to update or revise any forward-looking statements contained in this press release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Matters
This release contains certain non-GAAP financial measures, including, without limitation, total revenues, net income to common shareholders, earnings per diluted common share, revenue per diluted common share, PPNR, efficiency ratio, noninterest expense, noninterest income and the ratio of noninterest expense to average assets, excluding in certain instances the impact of expenses related to other real estate owned, gains or losses on sale of investment securities, gains associated with the sale-leaseback transaction completed in the second quarter of 2023, losses on the restructuring of certain BOLI contracts, charges related to the FDIC special assessment, income associated with the recognition of a mortgage servicing asset in the first quarter of 2024 and other matters for the accounting periods presented. This release may also contain certain other non-GAAP capital ratios and performance measures that exclude the impact of goodwill and core deposit intangibles associated with Pinnacle Financial's acquisitions of BNC, Avenue Bank, Magna Bank, CapitalMark Bank & Trust, Mid-America Bancshares, Inc., Cavalry Bancorp, Inc. and other acquisitions which collectively are less material to the non-GAAP measure as well as the impact of Pinnacle Financial's Series B Preferred Stock. The presentation of the non-GAAP financial information is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. Because non-GAAP financial measures presented in this release are not measurements determined in accordance with GAAP and are susceptible to varying calculations, these non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures presented by other companies.

Pinnacle Financial believes that these non-GAAP financial measures facilitate making period-to-period comparisons and are meaningful indications of its operating performance. In addition, because intangible assets such as goodwill and the core deposit intangible, and the other items excluded each vary extensively from company to company, Pinnacle Financial believes that the presentation of this information allows investors to more easily compare Pinnacle Financial's results to the results of other companies. Pinnacle Financial's management utilizes this non-GAAP financial information to compare Pinnacle Financial's operating performance for 2024 versus certain periods in 2023 and to internally prepared projections.

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PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS – UNAUDITED
(dollars in thousands, except for share and per share data)March 31, 2024December 31, 2023March 31, 2023
ASSETS
Cash and noninterest-bearing due from banks$175,826 $228,620 $209,255 
Restricted cash58,285 86,873 13,049 
Interest-bearing due from banks2,472,250 1,914,856 2,597,172 
Cash and cash equivalents2,706,361 2,230,349 2,819,476 
Securities purchased with agreement to resell554,022 558,009 509,872 
Securities available-for-sale, at fair value4,378,718 4,317,530 3,825,203 
Securities held-to-maturity (fair value of $2.7 billion, $2.8 billion, and $2.8 billion, net of allowance for credit losses of $1.7 million, $1.7 million, and $1.9 million at March 31, 2024, Dec. 31, 2023, and March 31, 2023, respectively)2,993,129 3,006,357 3,053,628 
Consumer loans held-for-sale104,586 104,217 58,758 
Commercial loans held-for-sale6,068 9,280 23,087 
Loans33,162,873 32,676,091 30,297,871 
Less allowance for credit losses(371,337)(353,055)(313,841)
Loans, net32,791,536 32,323,036 29,984,030 
Premises and equipment, net265,579 256,877 354,713 
Equity method investment457,657 445,223 438,303 
Accrued interest receivable219,887 217,491 143,965 
Goodwill1,846,973 1,846,973 1,846,973 
Core deposits and other intangible assets25,881 27,465 32,761 
Other real estate owned2,766 3,937 7,802 
Other assets2,541,033 2,613,139 2,021,016 
Total assets$48,894,196 $47,959,883 $45,119,587 
LIABILITIES AND SHAREHOLDERS' EQUITY 
Deposits: 
Noninterest-bearing$7,958,739 $7,906,502 $9,018,439 
Interest-bearing12,178,471 11,365,349 8,944,353 
Savings and money market accounts14,761,573 14,427,206 14,136,850 
Time4,503,242 4,840,753 4,078,911 
Total deposits39,402,025 38,539,810 36,178,553 
Securities sold under agreements to repurchase201,418 209,489 149,777 
Federal Home Loan Bank advances2,116,417 2,138,169 2,166,508 
Subordinated debt and other borrowings425,159 424,938 424,276 
Accrued interest payable58,069 66,967 31,728 
Other liabilities587,257 544,722 484,617 
Total liabilities42,790,345 41,924,095 39,435,459 
Preferred stock, no par value, 10.0 million shares authorized; 225,000 shares non-cumulative perpetual preferred stock, Series B, liquidation preference $225.0 million, issued and outstanding at March 31, 2024, Dec. 31, 2023, and March 31, 2023, respectively217,126 217,126 217,126 
Common stock, par value $1.00; 180.0 million shares authorized; 77.2 million, 76.8 million and 76.7 million shares issued and outstanding at March 31, 2024, Dec. 31, 2023, and March 31, 2023, respectively77,219 76,767 76,739 
Additional paid-in capital3,100,817 3,109,493 3,079,020 
Retained earnings2,887,804 2,784,927 2,458,006 
Accumulated other comprehensive loss, net of taxes(179,115)(152,525)(146,763)
Total shareholders' equity6,103,851 6,035,788 5,684,128 
Total liabilities and shareholders' equity$48,894,196 $47,959,883 $45,119,587 
This information is preliminary and based on company data available at the time of the presentation.
9


PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED
(dollars in thousands, except for share and per share data)Three months ended
 March 31, 2024December 31, 2023March 31, 2023
Interest income:
Loans, including fees$541,199 $530,604 $431,902 
Securities
Taxable44,470 42,458 29,358 
Tax-exempt24,600 25,035 23,802 
Federal funds sold and other40,214 46,699 20,977 
Total interest income650,483 644,796 506,039 
Interest expense:
Deposits300,968 297,556 176,589 
Securities sold under agreements to repurchase1,399 1,295 595 
FHLB advances and other borrowings30,082 28,693 16,624 
Total interest expense332,449 327,544 193,808 
Net interest income318,034 317,252 312,231 
Provision for credit losses34,497 16,314 18,767 
Net interest income after provision for credit losses283,537 300,938 293,464 
Noninterest income:
Service charges on deposit accounts13,439 12,660 11,718 
Investment services14,751 13,410 11,595 
Insurance sales commissions3,852 3,072 4,464 
Gains on mortgage loans sold, net2,879 879 2,053 
Investment gains on sales, net— 14 — 
Trust fees7,415 6,987 6,429 
Income from equity method investment16,035 14,432 19,079 
Gain on sale of fixed assets 58 102 135 
Other noninterest income51,674 27,532 34,056 
Total noninterest income110,103 79,088 89,529 
Noninterest expense:
Salaries and employee benefits146,010 133,333 135,708 
Equipment and occupancy39,646 38,021 30,353 
Other real estate, net84 125 99 
Marketing and other business development6,125 6,829 5,942 
Postage and supplies2,771 2,840 2,819 
Amortization of intangibles1,584 1,751 1,794 
Other noninterest expense46,145 68,269 35,012 
Total noninterest expense242,365 251,168 211,727 
Income before income taxes151,275 128,858 171,266 
Income tax expense 27,331 33,879 33,995 
Net income123,944 94,979 137,271 
Preferred stock dividends(3,798)(3,798)(3,798)
Net income available to common shareholders$120,146 $91,181 $133,473 
Per share information:
Basic net income per common share$1.58 $1.20 $1.76 
Diluted net income per common share$1.57 $1.19 $1.76 
Weighted average common shares outstanding:
Basic76,278,453 76,068,016 75,921,282 
Diluted76,428,885 76,823,991 76,042,328 
This information is preliminary and based on company data available at the time of the presentation.
10

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

(dollars and shares in thousands)Preferred
Stock
 Amount		Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comp. Income (Loss), netTotal Shareholders' Equity
 SharesAmounts
Balance at December 31, 2022$217,126 76,454 $76,454 $3,074,867 $2,341,706 $(190,761)$5,519,392 
Exercise of employee common stock options & related tax benefits— 40 40 920 — — 960 
Preferred dividends paid ($16.88 per share)— — — — (3,798)— (3,798)
Common dividends paid ($0.22 per share)— — — — (17,173)(17,173)
Issuance of restricted common shares, net of forfeitures— 193 193 (193)— — — 
Restricted shares withheld for taxes & related tax benefits— (41)(41)(3,035)— — (3,076)
Issuance of common stock pursuant to restricted stock unit (RSU) and performance stock unit (PSU) agreements, net of shares withheld for taxes & related tax benefits— 93 93 (3,738)— — (3,645)
Compensation expense for restricted shares & performance stock units— — — 10,199 — — 10,199 
Net income— — — — 137,271 — 137,271 
Other comprehensive gain— — — — — 43,998 43,998 
Balance at March 31, 2023$217,126 76,739 $76,739 $3,079,020 $2,458,006 $(146,763)$5,684,128 
Balance at December 31, 2023$217,126 76,767 $76,767 $3,109,493 $2,784,927 $(152,525)$6,035,788 
Exercise of employee common stock options & related tax benefits— — — — — — — 
Preferred dividends paid ($16.88 per share)— — — — (3,798)— (3,798)
Common dividends paid ($0.22 per share)— — — — (17,269)— (17,269)
Issuance of restricted common shares, net of forfeitures— 190 190 (190)— — — 
Restricted shares withheld for taxes & related tax benefits— (49)(49)(4,088)— — (4,137)
Issuance of common stock pursuant to RSU and PSU agreements, net of shares withheld for taxes & related tax benefits— 311 311 (14,738)— — (14,427)
Compensation expense for restricted shares & performance stock units— — — 10,340 — — 10,340 
Net income— — — — 123,944 — 123,944 
Other comprehensive loss— — — — — (26,590)(26,590)
Balance at March 31, 2024$217,126 77,219 $77,219 $3,100,817 $2,887,804 $(179,115)$6,103,851 


11

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
(dollars in thousands)MarchDecemberSeptemberJuneMarchDecember
202420232023202320232022
Balance sheet data, at quarter end:
Commercial and industrial loans$11,893,198 11,666,691 11,307,611 10,983,911 10,723,327 10,241,362 
Commercial real estate - owner occupied loans4,044,973 4,044,896 3,944,616 3,845,359 3,686,796 3,587,257 
Commercial real estate - investment loans6,138,711 5,929,595 5,957,426 5,682,652 5,556,484 5,277,454 
Commercial real estate - multifamily and other loans1,924,931 1,605,899 1,490,184 1,488,236 1,331,249 1,265,165 
Consumer real estate  - mortgage loans4,828,416 4,851,531 4,768,780 4,692,673 4,531,285 4,435,046 
Construction and land development loans3,818,334 4,041,081 3,942,143 3,904,774 3,909,024 3,679,498 
Consumer and other loans514,310 536,398 532,524 555,685 559,706 555,823 
Total loans33,162,873 32,676,091 31,943,284 31,153,290 30,297,871 29,041,605 
Allowance for credit losses(371,337)(353,055)(346,192)(337,459)(313,841)(300,665)
Securities7,371,847 7,323,887 6,882,276 6,623,457 6,878,831 6,637,920 
Total assets48,894,196 47,959,883 47,523,790 46,875,982 45,119,587 41,970,021 
Noninterest-bearing deposits7,958,739 7,906,502 8,324,325 8,436,799 9,018,439 9,812,744 
Total deposits39,402,025 38,539,810 38,295,809 37,722,661 36,178,553 34,961,238 
Securities sold under agreements to repurchase201,418 209,489 195,999 163,774 149,777 194,910 
FHLB advances2,116,417 2,138,169 2,110,598 2,200,917 2,166,508 464,436 
Subordinated debt and other borrowings425,159 424,938 424,718 424,497 424,276 424,055 
Total shareholders' equity6,103,851 6,035,788 5,837,641 5,843,759 5,684,128 5,519,392 
Balance sheet data, quarterly averages:
Total loans$33,041,954 32,371,506 31,529,854 30,882,205 29,633,640 28,402,197 
Securities7,307,201 6,967,488 6,801,285 6,722,247 6,765,126 6,537,262 
Federal funds sold and other3,274,062 3,615,908 4,292,956 3,350,705 2,100,757 1,828,588 
Total earning assets43,623,217 42,954,902 42,624,095 40,955,157 38,499,523 36,768,047 
Total assets48,311,260 47,668,519 47,266,199 45,411,961 42,983,854 41,324,251 
Noninterest-bearing deposits7,962,217 8,342,572 8,515,733 8,599,781 9,332,317 10,486,233 
Total deposits38,995,709 38,515,560 38,078,665 36,355,859 35,291,775 34,177,281 
Securities sold under agreements to repurchase210,888 202,601 184,681 162,429 219,082 199,610 
FHLB advances2,214,489 2,112,809 2,132,638 2,352,045 1,130,356 701,813 
Subordinated debt and other borrowings428,281 426,999 426,855 426,712 426,564 427,503 
Total shareholders' equity6,082,616 5,889,075 5,898,196 5,782,239 5,605,604 5,433,274 
Statement of operations data, for the three months ended:
Interest income$650,483 644,796 627,294 575,239 506,039 451,178 
Interest expense332,449 327,544 310,052 259,846 193,808 131,718 
Net interest income318,034 317,252 317,242 315,393 312,231 319,460 
Provision for credit losses34,497 16,314 26,826 31,689 18,767 24,805 
Net interest income after provision for credit losses283,537 300,938 290,416 283,704 293,464 294,655 
Noninterest income110,103 79,088 90,797 173,839 89,529 82,321 
Noninterest expense242,365 251,168 213,233 211,641 211,727 202,047 
Income before income taxes151,275 128,858 167,980 245,902 171,266 174,929 
Income tax expense27,331 33,879 35,377 48,603 33,995 37,082 
Net income123,944 94,979 132,603 197,299 137,271 137,847 
Preferred stock dividends(3,798)(3,798)(3,798)(3,798)(3,798)(3,798)
Net income available to common shareholders$120,146 91,181 128,805 193,501 133,473 134,049 
Profitability and other ratios:
Return on avg. assets (1)
1.00 %0.76 %1.08 %1.71 %1.26 %1.29 %
Return on avg. equity (1)
7.94 %6.14 %8.66 %13.42 %9.66 %9.79 %
 Return on avg. common equity (1)
8.24 %6.38 %9.00 %13.95 %10.05 %10.20 %
Return on avg. tangible common equity (1)
12.11 %9.53 %13.43 %21.06 %15.43 %15.95 %
Common stock dividend payout ratio (14)
12.59 %12.26 %11.35 %11.04 %12.07 %12.26 %
Net interest margin (2)
3.04 %3.06 %3.06 %3.20 %3.40 %3.60 %
Noninterest income to total revenue (3)
25.72 %19.95 %22.25 %35.53 %22.28 %20.49 %
Noninterest income to avg. assets (1)
0.92 %0.66 %0.76 %1.54 %0.84 %0.79 %
Noninterest exp. to avg. assets (1)
2.02 %2.09 %1.79 %1.87 %2.00 %1.94 %
Efficiency ratio (4)
56.61 %63.37 %52.26 %43.26 %52.70 %50.29 %
Avg. loans to avg. deposits
84.73 %84.05 %82.80 %84.94 %83.97 %83.10 %
Securities to total assets
15.08 %15.27 %14.48 %14.13 %15.25 %15.82 %
This information is preliminary and based on company data available at the time of the presentation.

12

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED
(dollars in thousands)Three months endedThree months ended
March 31, 2024March 31, 2023
 Average BalancesInterestRates/ YieldsAverage BalancesInterestRates/ Yields
Interest-earning assets
Loans (1) (2)
$33,041,954 $541,199 6.67 %$29,633,640 $431,902 6.00 %
Securities
Taxable3,919,534 44,470 4.56 %3,508,946 29,358 3.39 %
Tax-exempt (2)
3,387,667 24,600 3.48 %3,256,180 23,802 3.54 %
Interest-bearing due from banks2,476,800 32,753 5.32 %1,392,492 15,941 4.64 %
Resell agreements543,788 3,858 2.85 %512,660 3,329 2.63 %
Federal funds sold— — — %— (9)— %
Other253,474 3,603 5.72 %195,605 1,716 3.56 %
Total interest-earning assets43,623,217 $650,483 6.11 %38,499,523 $506,039 5.45 %
Nonearning assets
Intangible assets1,873,871 1,880,890 
Other nonearning assets2,814,172 2,603,441 
Total assets$48,311,260 $42,983,854 
Interest-bearing liabilities
Interest-bearing deposits:
Interest checking11,567,773 112,728 3.92 %7,793,823 52,474 2.73 %
Savings and money market14,608,687 134,752 3.71 %14,377,996 97,519 2.75 %
Time4,857,032 53,488 4.43 %3,787,639 26,596 2.85 %
Total interest-bearing deposits31,033,492 300,968 3.90 %25,959,458 176,589 2.76 %
Securities sold under agreements to repurchase210,888 1,399 2.67 %219,082 595 1.10 %
Federal Home Loan Bank advances2,214,489 24,120 4.38 %1,130,356 10,970 3.94 %
Subordinated debt and other borrowings428,281 5,962 5.60 %426,564 5,654 5.38 %
Total interest-bearing liabilities33,887,150 332,449 3.95 %27,735,460 193,808 2.83 %
Noninterest-bearing deposits7,962,217 — — 9,332,317 — — 
Total deposits and interest-bearing liabilities41,849,367 $332,449 3.20 %37,067,777 $193,808 2.12 %
Other liabilities379,277 310,473 
Shareholders' equity 6,082,616 5,605,604 
Total liabilities and shareholders' equity$48,311,260 $42,983,854 
Net  interest  income 
$318,034 $312,231 
Net interest spread (3)
2.16 %2.61 %
Net interest margin (4)
3.04 %3.40 %
(1) Average balances of nonperforming loans are included in the above amounts.
(2) Yields computed on tax-exempt instruments on a tax equivalent basis and included $11.8 million of taxable equivalent income for the three months ended March 31, 2024 compared to $10.9 million for the three months ended March 31, 2023. The tax-exempt benefit has been reduced by the projected impact of tax-exempt income that will be disallowed pursuant to IRS Regulations as of and for the then current period presented.
(3) Yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. The net interest spread calculation excludes the impact of demand deposits. Had the impact of demand deposits been included, the net interest spread for the three months ended March 31, 2024 would have been 2.91% compared to a net interest spread of 3.32% for the three months ended March 31, 2023.
(4) Net interest margin is the result of annualized net interest income calculated on a tax equivalent basis divided by average interest-earning assets for the period.
This information is preliminary and based on company data available at the time of the presentation.  

13

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
(dollars in thousands)MarchDecemberSeptemberJuneMarchDecember
202420232023202320232022
Asset quality information and ratios:
Nonperforming assets:
Nonaccrual loans$108,325 82,288 42,950 44,289 36,988 38,116 
ORE and other nonperforming assets (NPAs)
2,766 4,347 3,019 3,105 7,802 7,952 
Total nonperforming assets$111,091 86,635 45,969 47,394 44,790 46,068 
Past due loans over 90 days and still accruing interest$5,273 6,004 4,969 5,257 5,284 4,406 
Accruing purchase credit deteriorated loans$6,222 6,501 7,010 7,415 7,684 8,060 
Net loan charge-offs$16,215 13,451 18,093 9,771 7,291 11,729 
Allowance for credit losses to nonaccrual loans342.8 %429.0 %806.0 %762.0 %848.5 %788.8 %
As a percentage of total loans:
Past due accruing loans over 30 days0.17 %0.23 %0.16 %0.14 %0.14 %0.15 %
Potential problem loans
0.28 %0.39 %0.42 %0.32 %0.22 %0.19 %
Allowance for credit losses 1.12 %1.08 %1.08 %1.08 %1.04 %1.04 %
Nonperforming assets to total loans, ORE and other NPAs0.33 %0.27 %0.14 %0.15 %0.15 %0.16 %
    Classified asset ratio (Pinnacle Bank) (6)
4.9 %5.2 %4.6 %3.3 %2.7 %2.4 %
Annualized net loan charge-offs to avg. loans (5)
0.20 %0.17 %0.23 %0.13 %0.10 %0.17 %
Interest rates and yields:
Loans6.67 %6.62 %6.50 %6.30 %6.00 %5.54 %
Securities4.06 %4.12 %3.81 %3.66 %3.47 %3.19 %
Total earning assets6.11 %6.09 %5.95 %5.74 %5.45 %5.02 %
Total deposits, including non-interest bearing3.10 %3.07 %2.92 %2.52 %2.03 %1.40 %
Securities sold under agreements to repurchase2.67 %2.54 %2.30 %1.93 %1.10 %0.94 %
FHLB advances4.38 %4.26 %4.22 %4.20 %3.94 %3.04 %
Subordinated debt and other borrowings5.60 %5.59 %5.54 %5.44 %5.38 %4.98 %
Total deposits and interest-bearing liabilities3.20 %3.15 %3.01 %2.65 %2.12 %1.47 %
Capital and other ratios (6):
Pinnacle Financial ratios:
Shareholders' equity to total assets12.5 %12.6 %12.3 %12.5 %12.6 %13.2 %
Common equity Tier one10.4 %10.3 %10.3 %10.2 %9.9 %10.0 %
Tier one risk-based10.9 %10.8 %10.9 %10.8 %10.5 %10.5 %
Total risk-based12.9 %12.7 %12.8 %12.7 %12.4 %12.4 %
Leverage9.5 %9.4 %9.4 %9.5 %9.6 %9.7 %
Tangible common equity to tangible assets8.5 %8.6 %8.2 %8.3 %8.3 %8.5 %
Pinnacle Bank ratios:
Common equity Tier one11.3 %11.1 %11.2 %11.1 %10.8 %10.9 %
Tier one risk-based11.3 %11.1 %11.2 %11.1 %10.8 %10.9 %
Total risk-based12.2 %12.0 %12.0 %11.9 %11.6 %11.6 %
Leverage9.7 %9.7 %9.7 %9.8 %9.9 %10.1 %
Construction and land development loans
as a percentage of total capital (17)
77.5 %84.2 %83.1 %84.5 %88.5 %85.9 %
Non-owner occupied commercial real estate and
multi-family as a percentage of total capital (17)
258.0 %259.0 %256.4 %256.7 %261.1 %249.6 %
This information is preliminary and based on company data available at the time of the presentation.

14

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
(dollars in thousands, except per share data)MarchDecemberSeptemberJuneMarchDecember
202420232023202320232022
Per share data:
Earnings per common share – basic$1.58 1.20 1.69 2.55 1.76 1.77 
Earnings per common share - basic, excluding non-GAAP adjustments$1.54 1.70 1.79 1.80 1.76 1.77 
Earnings per common share – diluted$1.57 1.19 1.69 2.54 1.76 1.76 
Earnings per common share - diluted, excluding non-GAAP adjustments$1.53 1.68 1.79 1.79 1.76 1.76 
Common dividends per share$0.22 0.22 0.22 0.22 0.22 0.22 
Book value per common share at quarter end (7)
$76.23 75.80 73.23 73.32 71.24 69.35 
Tangible book value per common share at quarter end (7)
$51.98 51.38 48.78 48.85 46.75 44.74 
Revenue per diluted common share$5.60 5.16 5.35 6.43 5.28 5.27 
Revenue per diluted common share, excluding non-GAAP adjustments$5.45 5.25 5.48 5.43 5.28 5.27 
Investor information:
Closing sales price of common stock on last trading day of quarter$85.88 87.22 67.04 56.65 55.16 73.40 
High closing sales price of common stock during quarter$91.82 89.34 75.95 57.93 82.79 87.81 
Low closing sales price of common stock during quarter$79.26 60.77 56.41 46.17 52.51 70.74 
Closing sales price of depositary shares on last trading day of quarter$23.62 22.60 22.70 23.75 24.15 25.35 
High closing sales price of depositary shares during quarter$24.44 23.65 23.85 24.90 25.71 25.60 
Low closing sales price of depositary shares during quarter$22.71 21.00 21.54 19.95 20.77 23.11 
Other information:
Residential mortgage loan sales:
Gross loans sold$148,576 142,556 198,247 192,948 120,146 134,514 
Gross fees (8)
$3,540 3,191 4,350 4,133 2,795 3,149 
Gross fees as a percentage of loans originated2.38 %2.24 %2.19 %2.14 %2.33 %2.34 %
Net gain (loss) on residential mortgage loans sold$2,879 879 2,012 1,567 2,053 (65)
Investment gains (losses) on sales of securities, net (13)
$— 14 (9,727)(9,961)— — 
Brokerage account assets, at quarter end (9)
$10,756,108 9,810,457 9,041,716 9,007,230 8,634,339 8,049,125 
Trust account managed assets, at quarter end$6,297,887 5,530,495 5,047,128 5,084,592 4,855,951 4,560,752 
Core deposits (10)
$34,638,610 33,738,917 33,606,783 32,780,767 32,054,111 31,301,077 
Core deposits to total funding (10)
82.2 %81.7 %81.9 %80.9 %82.4 %86.8 %
Risk-weighted assets$40,531,311 40,205,295 39,527,086 38,853,588 38,117,659 36,216,901 
Number of offices 128 128 128 127 126 123 
Total core deposits per office$270,614 263,585 262,553 258,116 254,398 254,480 
Total assets per full-time equivalent employee$14,438 14,287 14,274 14,166 13,750 12,948 
Annualized revenues per full-time equivalent employee$508.5 468.4 486.2 593.0 496.5 491.8 
Annualized expenses per full-time equivalent employee$287.8 296.8 254.1 256.5 261.7 247.3 
Number of employees (full-time equivalent)3,386.5 3,357.0 3,329.5 3,309.0 3,281.5 3,241.5 
Associate retention rate (11)
94.2 %94.2 %93.6 %94.1 %93.8 %93.8 %
This information is preliminary and based on company data available at the time of the presentation.


15

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
Three months ended
(dollars in thousands, except per share data)
March DecemberMarch
202420232023
Net interest income$318,034317,252312,231
Noninterest income110,10379,08889,529
Total revenues428,137396,340401,760
Less: Investment losses (gains) on sales of securities, net—(14)—
Loss on BOLI restructuring—7,166—
Recognition of mortgage servicing asset(11,812)——
Total revenues excluding the impact of adjustments noted above$416,325403,492401,760
Noninterest expense$242,365251,168211,727
Less: ORE expense (benefit)8412599
FDIC special assessment7,25029,000—
Noninterest expense excluding the impact of adjustments noted above$235,031222,043211,628
Pre-tax income$151,275128,858171,266
Provision for credit losses34,49716,31418,767
Pre-tax pre-provision net revenue185,772145,172190,033
Less: Adjustments noted above(4,478)36,27799
Adjusted pre-tax pre-provision net revenue (12)
$181,294181,449190,132
Noninterest income$110,10379,08889,529
Less: Adjustments noted above(11,812)7,152—
Noninterest income excluding the impact of adjustments noted above$98,29186,24089,529
Efficiency ratio (4)
56.61 %63.37 %52.70 %
Adjustments noted above(0.16)%(8.34)%(0.02)%
Efficiency ratio excluding adjustments noted above (4)
56.45 %55.03 %52.68 %
Total average assets$48,311,26047,668,51942,983,854
Noninterest income to average assets (1)
0.92 %0.66 %0.84 %
Less: Adjustments noted above(0.10)%0.06 %— %
Noninterest income (excluding adjustments noted above) to average assets (1)
0.82 %0.72 %0.84 %
Noninterest expense to average assets (1)
2.02 %2.09 %2.00 %
Adjustments as noted above(0.06)%(0.24)%— %
Noninterest expense (excluding adjustments noted above) to average assets (1)
1.96 %1.85 %2.00 %
This information is preliminary and based on company data available at the time of the presentation.


16

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
Three months ended
(dollars in thousands, except per share data)March DecemberSeptemberJuneMarchDecember
202420232023202320232022
Net income available to common shareholders$120,146 91,181 128,805 193,501 133,473 134,049 
Investment (gains) losses on sales of securities, net— (14)9,727 9,961 — — 
Gain on sale of fixed assets as a result of sale-leaseback transaction— — — (85,692)— — 
Loss on BOLI restructuring— 16,252 — — — — 
FDIC special assessment7,250 29,000 — — — — 
ORE expense (benefit)84 125 33 58 99 179 
Recognition of mortgage servicing asset(11,812)— — — — — 
Tax effect on above noted adjustments (16)
1,120 (7,278)(2,440)18,918 (25)(47)
Net income available to common shareholders excluding adjustments noted above $116,788 129,266 136,125 136,746 133,547 134,181 
Basic earnings per common share$1.58 1.20 1.69 2.55 1.76 1.77 
Less:
Investment (gains) losses on sales of securities, net— — 0.13 0.13 — — 
Gain on sale of fixed assets as a result of sale-leaseback transaction— — — (1.13)— — 
Loss on BOLI restructuring— 0.21 — — — — 
FDIC special assessment0.10 0.38 — — — — 
ORE expense (benefit)— — — — — — 
Recognition of mortgage servicing asset(0.15)— — — — — 
Tax effect on above noted adjustments (16)
0.01 (0.10)(0.03)0.25 — — 
Basic earnings per common share excluding adjustments noted above$1.54 1.70 1.79 1.80 1.76 1.77 
Diluted earnings per common share$1.57 1.19 1.69 2.54 1.76 1.76 
Less:
Investment (gains) losses on sales of securities, net— — 0.13 0.13 — — 
Gain on sale of fixed assets as a result of sale-leaseback transaction— — — (1.13)— — 
Loss on BOLI restructuring— 0.21 — — — — 
FDIC special assessment0.10 0.38 — — — — 
ORE expense (benefit)— — — — — — 
Recognition of mortgage servicing asset(0.15)— — — — — 
Tax effect on above noted adjustments (16)
0.01 (0.09)(0.03)0.25 — — 
Diluted earnings per common share excluding the adjustments noted above$1.53 1.68 1.79 1.80 1.76 1.76 
Revenue per diluted common share$5.60 5.16 5.35 6.43 5.28 5.27 
Adjustments due to revenue-impacting items as noted above(0.15)0.09 0.13 (1.00)— — 
Revenue per diluted common share excluding adjustments due to revenue-impacting items as noted above$5.45 5.25 5.48 5.43 5.28 5.27 
Book value per common share at quarter end (7)
$76.23 75.80 73.23 73.32 71.24 69.35 
Adjustment due to goodwill, core deposit and other intangible assets(24.25)(24.42)(24.45)(24.47)(24.49)(24.61)
Tangible book value per common share at quarter end (7)
$51.98 51.38 48.78 48.85 46.75 44.74 
Equity method investment (15)
Fee income from BHG, net of amortization$16,035 14,432 24,967 26,924 19,079 21,005 
Funding cost to support investment5,974 5,803 6,546 6,005 5,768 5,438 
Pre-tax impact of BHG10,061 8,629 18,421 20,919 13,311 15,567 
Income tax expense at statutory rates (16)
2,515 2,157 4,605 5,230 3,328 4,069 
Earnings attributable to BHG$7,546 6,472 13,816 15,689 9,983 11,498 
Basic earnings per common share attributable to BHG$0.10 0.09 0.18 0.21 0.13 0.15 
Diluted earnings per common share attributable to BHG$0.10 0.08 0.18 0.21 0.13 0.15 
This information is preliminary and based on company data available at the time of the presentation.

17

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
Three months ended
(dollars in thousands, except per share data)
March DecemberMarch
202420232023
Return on average assets (1)
1.00 %0.76 %1.26 %
Adjustments as noted above(0.03)%0.32 %— %
Return on average assets excluding adjustments noted above (1)
0.97 %1.08 %1.26 %
Tangible assets:
Total assets$48,894,19647,959,88345,119,587
Less:   Goodwill(1,846,973)(1,846,973)(1,846,973)
Core deposit and other intangible assets(25,881)(27,465)(32,761)
Net tangible assets$47,021,34246,085,44543,239,853
Tangible common equity:
Total shareholders' equity$6,103,8516,035,7885,684,128
Less: Preferred shareholders' equity(217,126)(217,126)(217,126)
Total common shareholders' equity5,886,7255,818,6625,467,002
Less: Goodwill(1,846,973)(1,846,973)(1,846,973)
Core deposit and other intangible assets(25,881)(27,465)(32,761)
Net tangible common equity$4,013,8713,944,2243,587,268
Ratio of tangible common equity to tangible assets8.54 %8.56 %8.30 %
Average tangible assets:
Average assets$48,311,26047,668,51942,983,854
Less: Average goodwill(1,846,973)(1,846,973)(1,846,973)
Average core deposit and other intangible assets(26,898)(28,573)(33,917)
Net average tangible assets$46,437,38945,792,97341,102,964
Return on average assets (1)
1.00 %0.76 %1.26 %
Adjustment due to goodwill, core deposit and other intangible assets0.04 %0.03 %0.06 %
Return on average tangible assets (1)
1.04 %0.79 %1.32 %
Adjustments as noted above(0.03)%0.33 %— %
Return on average tangible assets excluding adjustments noted above (1)
1.01 %1.12 %1.32 %
Average tangible common equity:
Average shareholders' equity$6,082,6165,889,0755,605,604
Less: Average preferred equity(217,126)(217,126)(217,126)
Average common equity5,865,4905,671,9495,388,478
Less:   Average goodwill(1,846,973)(1,846,973)(1,846,973)
Average core deposit and other intangible assets(26,898)(28,573)(33,917)
Net average tangible common equity$3,991,6193,796,4033,507,588
Return on average equity (1)
7.94 %6.14 %9.66 %
Adjustment due to average preferred shareholders' equity0.30 %0.24 %0.39 %
Return on average common equity (1)
8.24 %6.38 %10.05 %
Adjustment due to goodwill, core deposit and other intangible assets3.87 %3.15 %5.38 %
Return on average tangible common equity (1)
12.11 %9.53 %15.43 %
Adjustments as noted above(0.34)%3.98 %0.01 %
Return on average tangible common equity excluding adjustments noted above (1)
11.77 %13.51 %15.44 %
This information is preliminary and based on company data available at the time of the presentation.

18

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
 
1. Ratios are presented on an annualized basis.
2. Net interest margin is the result of net interest income on a tax equivalent basis divided by average interest earning assets.
3. Total revenue is equal to the sum of net interest income and noninterest income.
4. Efficiency ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income.
5. Annualized net loan charge-offs to average loans ratios are computed by annualizing quarter-to-date net loan charge-offs and dividing the result by average loans for the quarter-to-date period.
6. Capital ratios are calculated using regulatory reporting regulations enacted for such period and are defined as follows:
Equity to total assets – End of period total shareholders' equity as a percentage of end of period assets.
Tangible common equity to tangible assets - End of period total shareholders' equity less end of period preferred stock, goodwill, core deposit and other intangibles as a percentage of end of period assets less end of period goodwill, core deposit and other intangibles.
Leverage – Tier I capital (pursuant to risk-based capital guidelines) as a percentage of adjusted average assets.
Tier I risk-based – Tier I capital (pursuant to risk-based capital guidelines) as a percentage of total risk-weighted assets.
Total risk-based – Total capital (pursuant to risk-based capital guidelines) as a percentage of total risk-weighted assets.
Classified asset - Classified assets as a percentage of Tier 1 capital plus allowance for credit losses.
Tier I common equity to risk weighted assets - Tier 1 capital (pursuant to risk-based capital guidelines) less the amount of any preferred stock or subordinated indebtedness that is considered as a component of Tier 1 capital as a percentage of total risk-weighted assets.
7. Book value per common share computed by dividing total common shareholders' equity by common shares outstanding. Tangible book value per common share computed by dividing total common shareholders' equity, less goodwill, core deposit and other intangibles by common shares outstanding.
8. Amounts are included in the statement of income in "Gains on mortgage loans sold, net", net of commissions paid on such amounts.
9. At fair value, based on information obtained from Pinnacle's third party broker/dealer for non-FDIC insured financial products and services.
10. Core deposits include all transaction deposit accounts, money market and savings accounts and all certificates of deposit issued in a denomination of less than $250,000. The ratio noted above represents total core deposits divided by total funding, which includes total deposits, FHLB advances, securities sold under agreements to repurchase, subordinated indebtedness and all other interest-bearing liabilities.
11. Associate retention rate is computed by dividing the number of associates employed at quarter end less the number of associates that have resigned in the last 12 months by the number of associates employed at quarter end.
12. Adjusted pre-tax, pre-provision net revenue excludes the impact of ORE expenses and income, investment gains and losses on sales of securities, the impact of BOLI restructuring, the impact of the FDIC special assessment and the recognition of the mortgage servicing asset.
13. Represents investment gains (losses) on sales and impairments, net occurring as a result of gains or losses incurred as the result of a change in management's intention to sell a bond prior to the recovery of its amortized cost basis.
14. The dividend payout ratio is calculated as the sum of the annualized dividend rate for dividends paid on common shares divided by the trailing 12-months fully diluted earnings per common share as of the dividend declaration date.
15. Earnings from equity method investment includes the impact of the funding costs of the overall franchise calculated using the firm's subordinated and other borrowing rates. Income tax expense is calculated using statutory tax rates.
16. Tax effect calculated using the blended statutory rate of 25.00 percent for all periods in 2024 and 2023. For periods prior to 2023, tax effect calculated using the blended statutory rate of 26.14 percent.
17. Calculated using the same guidelines as are used in the Federal Financial Institutions Examination Council's Uniform Bank Performance Report.

19