First Quarter 2013 Investor Call Terry Turner, President and CEO - - PowerPoint PPT Presentation

First Quarter 2013 Investor Call

Terry Turner, President and CEO Harold Carpenter, EVP and CFO April 16, 2013

Safe Harbor Statements

Forward‐looking statements

Certain of the statements in this presentation may constitute forward‐looking statements within the meaning of Section 27A of the Securities Act Certain of the statements in this presentation may constitute forward looking statements within the meaning of Section 27A of the Securities Act

• f 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “expect,” “anticipate,” “goal,” “objective,”

“intend,” “plan,” “believe,” ”should,” “seek,” “estimate” and similar expressions are intended to identify such forward‐looking statements, but

• ther statements not based on historical information may also be considered forward‐looking. All forward‐looking statements are subject to risks,

uncertainties and other factors that may cause the actual results, performance or achievements of Pinnacle Financial to differ materially from any results expressed or implied by such forward‐looking statements. Such risks include, without limitation, (i) deterioration in the financial condition

• f borrowers resulting in significant increases in loan losses and provisions for those losses; (ii) continuation of the historically low short‐term
• f borrowers resulting in significant increases in loan losses and provisions for those losses; (ii) continuation of the historically low, short‐term

interest rate environment; (iii) the inability of Pinnacle Financial to grow its loan portfolio in the Nashville‐Davidson‐Murfreesboro‐Franklin MSA (“the Nashville MSA”) and the Knoxville MSA; (iv) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (v) effectiveness of Pinnacle Financial’s asset management activities in improving, resolving or liquidating lower‐quality assets; (vi) increased competition with other financial institutions; (vii) greater than anticipated adverse conditions in the national or local economies including the Nashville MSA and the Knoxville MSA, particularly in commercial and residential real estate markets; (viii) rapid fluctuations or unanticipated changes in interest rates; (ix) the results of regulatory examinations; (x) residential real estate markets; (viii) rapid fluctuations or unanticipated changes in interest rates; (ix) the results of regulatory examinations; (x) the ability to retain large, uninsured deposits with the expiration of the FDIC’s transaction account guarantee program; (xi) the development of any new market other than Nashville or Knoxville; (xii) a merger or acquisition; (xiii) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including intangible assets; (xiv) the ability to attract additional financial advisors or to attract customers from

• ther financial institutions and conversely, the inability to realize the economic benefits of newly hired financial advisors; (xv) further

deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xvi) inability to comply with regulatory i l i i l di h l i f l d h i l l l i h d l i d i d i l capital requirements, including those resulting from currently proposed changes to capital calculation methodologies and required capital maintenance levels; and (xvii) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, including regulatory or legislative developments arising out of current unsettled conditions in the economy, including implementation

• f the Dodd‐Frank Wall Street Reform and Consumer Protection Act (the “Dodd‐Frank Act”). A more detailed description of these and other risks is

contained in “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10‐K filed with the Securities and Exchange Commission on February 22, 2013. Many of such factors are beyond Pinnacle Financial’s ability to control or predict, and readers are cautioned not to put undue reliance on such forward‐looking statements. Pinnacle Financial disclaims any obligation to update or revise any forward‐looking statements contained in this quarterly report, whether as a result of new information, future events or otherwise.

2

Delivering Results

PNFP has executed its recurring priorities

• Reduce the risk in the loan portfolio
• Build the core earnings capacity

Build the core earnings capacity

3

Delivering Results

Li k d Qt Y C ti

Asset quality continued to improve in 1Q13

Linked Qtr Change Year over Year Change Consecutive

• Qtrs. of

Progress Credit losses (NCO’s + ORE expense) (17 8%) (65 1%) 11 Credit losses (NCO s + ORE expense) (17.8%) (65.1%) 11 NPLs (4.3%) (49.0%) 12 NPAs (6.7%) (49.7%) 11 Classified loans (8.3%) (26.1%) 11

4

Delivering Results

Linked Qtr Change Quarterly Year

• ver Year

Core earnings capacity continued to expand in 1Q13

g Change Total loans 1.6% 13.0%

• Avg. noninterest‐bearing deposits

(2.6%) 35.8% Net interest income 1.2% 8.2% Net interest margin 2.6% 4.3% Cost of funds (8.7%) (33.3%) Noninterest income excl. securities gains 7.0% 21.0% Total revenue excl. securities gains 2.4% 10.8% Total revenue excl. securities gains 2.4% 10.8%

5

Delivering Results

Keen focus on core earnings capacity produces record results

Total Loans Total Revenues (*)

$1 500 $2,000 $2,500 $3,000 $3,500 $4,000 Millions $ $30 $40 $50 $60 Millions $ $0 $500 $1,000 $1,500

Dec‐00 Mar‐01 Jun‐01 Sep‐01 Dec‐01 Mar‐02 Jun‐02 Sep‐02 Dec‐02 Mar‐03 Jun‐03 Sep‐03 Dec‐03 Mar‐04 Jun‐04 Sep‐04 Dec‐04 Mar‐05 Jun‐05 Sep‐05 Dec‐05 Mar‐06 Jun‐06 Sep‐06 Dec‐06 Mar‐07 Jun‐07 Sep‐07 Dec‐07 Mar‐08 Jun‐08 Sep‐08 Dec‐08 Mar‐09 Jun‐09 Sep‐09 Dec‐09 Mar‐10 Jun‐10 Sep‐10 Dec‐10 Mar‐11 Jun‐11 Sep‐11 Dec‐11 Mar‐12 Jun‐12 Sep‐12 Dec‐12 Mar‐13

$0 $10 $20

Dec‐00 Mar‐01 Jun‐01 Sep‐01 Dec‐01 Mar‐02 Jun‐02 Sep‐02 Dec‐02 Mar‐03 Jun‐03 Sep‐03 Dec‐03 Mar‐04 Jun‐04 Sep‐04 Dec‐04 Mar‐05 Jun‐05 Sep‐05 Dec‐05 Mar‐06 Jun‐06 Sep‐06 Dec‐06 Mar‐07 Jun‐07 Sep‐07 Dec‐07 Mar‐08 Jun‐08 Sep‐08 Dec‐08 Mar‐09 Jun‐09 Sep‐09 Dec‐09 Mar‐10 Jun‐10 Sep‐10 Dec‐10 Mar‐11 Jun‐11 Sep‐11 Dec‐11 Mar‐12 Jun‐12 Sep‐12 Dec‐12 Mar‐13

$8 00 $10.00 $12.00 $14.00 s $

Tangible Common Equity Per Share

$8,000 $10,000 $12,000 $14,000 ns $

Noninterest Income (*)

$0.00 $2.00 $4.00 $6.00 $8.00

‐00 Mar‐… ‐01 ‐01 ‐01 Mar‐… ‐02 ‐02 ‐02 Mar‐… ‐03 ‐03 ‐03 Mar‐… ‐04 ‐04 ‐04 Mar‐… ‐05 ‐05 ‐05 Mar‐… ‐06 ‐06 ‐06 Mar‐… ‐07 ‐07 ‐07 Mar‐… ‐08 ‐08 ‐08 Mar‐… ‐09 ‐09 ‐09 Mar‐… ‐10 ‐10 ‐10 Mar‐… ‐11 ‐11 ‐11 Mar‐… ‐12 ‐12 ‐12 Mar‐…

Dollars $0 $2,000 $4,000 $6,000

ec‐00 ar‐01 un‐01 ep‐01 ec‐01 ar‐02 un‐02 ep‐02 ec‐02 ar‐03 un‐03 ep‐03 ec‐03 ar‐04 un‐04 ep‐04 ec‐04 ar‐05 un‐05 ep‐05 ec‐05 ar‐06 un‐06 ep‐06 ec‐06 ar‐07 un‐07 ep‐07 ec‐07 ar‐08 un‐08 ep‐08 ec‐08 ar‐09 un‐09 ep‐09 ec‐09 ar‐10 un‐10 ep‐10 ec‐10 ar‐11 un‐11 ep‐11 ec‐11 ar‐12 un‐12 ep‐12 ec‐12 ar‐13

Million

6

Source: SNL Financial – *Total revenues and noninterest income exclude nonrecurring items and investment gains and losses

Dec M Jun Sep Dec M Jun Sep Dec M Jun Sep Dec M Jun Sep Dec M Jun Sep Dec M Jun Sep Dec M Jun Sep Dec M Jun Sep Dec M Jun Sep Dec M Jun Sep Dec M Jun Sep Dec M Jun Sep Dec M D M Ju Se D M Ju Se D M Ju Se D M Ju Se D M Ju Se D M Ju Se D M Ju Se D M Ju Se D M Ju Se D M Ju Se D M Ju Se D M Ju Se D M

First Quarter 2013 Highlights

Loan volumes grew meaningfully with modest yield compression

6.00%

$3,580 $3,682

5.60% $3,600 $3,700

$3,403 $3,489

4.88% 4.87% 4.78% 4.74% 4.74% 4.65% 4.62% 4.64% 4.58%

4.80% 5.20% $3,400 $3,500

n Yields age Loans

(millions) $3,191 $3,212 $3,207 $3,262 $3,280

4 00% 4.40% $3,200 $3,300

Loa Avera

(

3.60% 4.00% $3,000 $3,100

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 7

Avg Loans Loan Yields

First Quarter 2013 Highlights

$300,000

Loan originations outpaced substantial pay offs

$200,000 $250,000

es

$100 000 $150,000 $ ,

an Volum

($ thousands)

$50,000 $100,000

Loa

$0

1Q12 2Q12 3Q12 4Q12 1Q13

New loans Pay offs

Source: New loans consider only those balances at quarter end with new tax identification numbers which were not present at the

8

Source: New loans consider only those balances at quarter end with new tax identification numbers which were not present at the beginning of the current quarter. Pay‐offs include only those tax identification numbers which were removed from our loan systems at the current quarter end, but had a loan balance > $0 as of the beginning of the current quarter. As a result, the chart above does not include net changes in lines of credit or normal recurring amortization to existing loan balances.

First Quarter 2013 Highlights

Net interest income and margin continued to expand

N t I t t M i

Key Revenue Drivers:

3.90%

3.90% 4.00%

Net Interest Margin

• Higher loan volumes
• Reduced funding costs with improving

deposit mix $44

Net Interest Income

(in millions)

3.65% 3.74% 3.76% 3.78% 3.80%

3.70% 3.80%

• FHLB advance restructuring

$37 8$38.4 $39.3 $39.5 $40.2 $40.9 $42.2 $42.8

$40 $42 $44

3.55% 3.60%

3.50% 3.60%

$36.0 $37.8 $

$34 $36 $38

3.40%

3.30% 3.40%

9

$

First Quarter 2013 Highlights

Reduction in cost of deposits contributed to margin expansion

1.25% $3,850

$3,746 $3,814 1.01%

0.95% 1.10% $3,550 $3,650 $3,750

%) ions)

$3,397 $3,386 $3,459 $3,534

0 65% 0.80% $3,250 $3,350 $3,450

• sit costs (%

posits (milli

$3,113 $3,141 $3,236

0 35% 0.50% 0.65% $2,950 $3,050 $3,150

Depo

• g. Core Dep

0.35%

0.20% 0.35% $2,750 $2,850

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13

Avg

10

Avg Core Deposits Cost of Deposits

First Quarter 2013 Highlights

Core fees progressed to highest level in firm history

Year‐over‐year Increases

$11 120 $11,000 $11,500

Total Fees (excl. securites gains and losses)

• Deposit & Interchange ‐ 13.2%
• Wealth Management ‐ 23.1%
• Mortgage, net of commission – 10.7%

$ $9,835 $9,811 $10,480 $11,120 $9,500 $10,000 $10,500 $11,000 ($ thousands)

Deposit & Interchange Wealth Management Mortgage, net of commission

• Noninterest income excl. securities gains and losses – 21.0%

$9,594 $8,500 $9,000 $9,500 1Q12 2Q12 3Q12 4Q12 1Q13 ( $3,000 $3,500 $4,000 $4,500 $5,000

• usands)

$500 $1,000 $1,500 $2,000 $2,500 ($ tho

11

$0 1Q12 2Q12 3Q12 4Q12 1Q13

First Quarter 2013 Highlights

Reduction of NPA’s and increased reserve coverage continued

367% $90 $140 0 $70 0

317.9%

267% 300% 333% 367% $70 $80 $90

n millions)

$132.4

$100.0 $120.0 $140.0 $50.0 $60.0 $70.0

millions)

167% 200% 233% $40 $50 $60

forming loans (i

• wance to NPL’s

$60.0 $80.0 $ 00.0 $30.0 $40.0 $50.0

PA Balances Dispositions (in

103.4%

33% 67% 100% 133% $10 $20 $30

Total Nonperf Allo

$ 38.6

$20.0 $40.0 $10.0 $20.0

NP PA Inflows and D

0% 33% $0 Nonperforming loans < 30 days past due $0.0 $0.0

NP

NPA Dispositions

12

p g y p Nonperforming Loans Allowance to NPLs p NPA inflows NPA Balances

First Quarter 2013 Highlights

Credit costs continued to decline in concert with NPA reductions

$16 0 $4 3 $12 0 $14.0 $16.0 $4.3 $3.8 $5.1 $4.2 $8 0 $10.0 $12.0

(in millions)

$9.7 $8.6 $ $4.7 $3 1 $4 0 $6.0 $8.0

Credit Losses

$5.7 $6.3 $3.6 $2.4 $1.9 $2.2 $2.2 $3.1 $2.4 $1.4 $0.7 $‐ $2.0 $4.0 13 $‐ 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Net Charge‐Offs ORE Expense

First Quarter 2013 Highlights

Operating leverage continued to expand

1Q13 4Q12 3Q12 2Q12 1Q12 Salaries and benefits $19,572 $19,556 $19,470 $19,237 $19,793 Salaries and benefits $19,572 $19,556 $19,470 $19,237 $19,793 Equipment and occupancy 5,113 5,202 5,156 5,053 4,374 Other real estate owned 721 1,365 2,399 3,104 4,676 Marketing and Bus. Dev. 791 1,276 835 740 785 g Supplies and postage 592 563 638 616 563 Intangible amortization 521 683 683 686 686 Other expenses: FHLB restructuring charges 877 2,092 ‐ ‐ ‐ Other expenses 4,253 4,114 4,397 4,479 4,943 Total noninterest expense $32,440 $34,851 $33,578 $33,915 $35,820 Efficiency ratio 59.3% 63.0% 65.4% 67.7% 72.4%

Total noninterest expense – excluding ORE and FHLB restructuring charges $30,842 $31,395 $31,179 $30,811 $31,144 14 ORE and FHLB restructuring charges Efficiency ratio, excl. gain on sale of securities, ORE and FHLB restructuring charges 56.4% 58.8% 60.6% 61.6% 63.1%

First Quarter 2013 Highlights

Adjusted PTPP expanded 30.9% in 1Q13 over the same period prior year

(000’s) 1Q13 4Q12 3Q12 2Q12 1Q12 Net interest income $42,758 $42,243 $40,932 $40,185 $39,504 Total noninterest income 11,902 13,108 10,430 9,910 9,949 Total revenue 54,660 55,351 51,362 50,095 49,453 Total noninterest expense 32,440 34,851 33,578 33,915 35,820 Pre-tax, pre-provision income 22,220 20,500 17,784 16,180 13,633 Adjustments to PTPP: (Gains) losses on sale of securities

• (1,988)

50 (99) (114) Other real estate expenses 721 1,365 2,399 3,104 4,676 FHLB restructuring charges 877 2,092

• Adjusted PTPP

$23,818 $21,969 $20,233 $19,185 $18,195 Adjusted PTPP/Average Assets 1.91% 1.77% 1.67% 1.59% 1.53%

15

Compelling Business Case

Pinnacle is progressing toward its long‐term profitability targets

Asset growth is the key

Ratio PNFP 1Q12 PNFP 2Q12 PNFP 3Q12 PNFP 4Q12 PNFP 1Q13 PNFP Long‐term Targets NIM 3.74% 3.76% 3.78% 3.80% 3.90% 3.70%‐3.90% Net Charge‐offs 0.44% 0.28% 0.22% 0.24% 0.24% 0.20%‐0.35% Noninterest Income / Total Average Assets 0.81%(1) 0.81%(1) 0.86%(1) 0.89%(1) 0.95%(1) 0.70%‐0.90% Noninterest Expense / T t l A A t 2.60%(2) 2.56%(2) 2.55%(2) 2.52%(2) 2.46%(2) 2.10%‐2.30% Total Average Assets ROAA 0.60% 0.65% 0.93% 0.94% 1.09% 1.10%‐1.30%

16

(1)‐ Calculation excludes net gains and losses on the sale of investment securities (2) ‐ Calculation excludes OREO expense and FHLB prepayment charges

Compelling Business Case

Pinnacle continued to leverage existing infrastructure

$6,900,000 $7,050,000 $7,200,000 290,000 310,000 330,000 te

Revenue per FTE Associate

$6,600,000 $6,750,000 230,000 250,000 270,000 per FTE Associate nue Per FTE Associa $6,150,000 $6,300,000 $6,450,000 170 000 190,000 210,000 Assets p Reven

Assets Per FTE Associate

$6,000,000 $6,150,000 150,000 170,000 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13

17

Compelling Business Case

Existing lenders are leveraging capacity to take share and grow loans

2012 ‐ 2014 2012 2014 Anticipated Net Loan Growth

13 0% AGR 11.5% CAGR (1/1/2012‐3/31/2013)

Thru 1Q2013

$481.0 million net growth thru 1Q2013

13.0% AGR (Last 4 Quarters)

Previously reported growth Current quarter growth FA capacity

$1 27 Billi T t

FA Capacity $1.27 Billion Capacity 11.5% CAGR

FA capacity

$1.27 Billion Target

FA Capacity

18

Compelling Business Case

“Best in Class” sales and client satisfaction support growth outlook

1st Place Sales Performance 1st Place Client Satisfaction Performance

Noncustomer response

• Would add provider

Brand Image

• Values long‐term relationships
• Broad range of products / services

Solicitation effectiveness Relationship Manager Solicitation effectiveness

• Willingness to lend at competitive pricing
• Initiates new and valuable ideas
• Advice on optimizing cash flow
• Bank you can trust

Relationship Manager

• Understanding of industry
• Top management support
• Knowledge of treasury management services
• Effectively coordinating product specialists

Product Cross‐sell

• Primary business checking
• Overall treasury management
• Loans / Lines of credit

Branch Experience

• Ability to resolve problems
• Access to decision makers
• Knowledgeable staff

Best in class is based on the top 5 banks in lead relationship share.

Loyalty – Very likely to recommend Financial stability Overall client satisfaction

19 Greenwich Associates Market Tracking Program – Sales of $1 Million to $500 Million – Jan. – Nov. 2012 Nashville and Knoxville combined – 622 completed interviews – Blind study, no bank identified as sponsor during interview

Compelling Business Case

Market share and client loyalty trends support growth outlook

Nashville

Knoxville

14% 16% 18% 20% s as a % ket

Pinnacle

Regional B 14% 16% 18% 20% s as a % ket Regional A 6% 8% 10% 12% 14% Lead Relationships

• f total Mark

Regional C Regional A National A 6% 8% 10% 12% 14% Lead Relationships

• f total Mark

Regional B Regional C 0% 2% 4% 0% 20% 40% 60% 80% 100% Loyalty ‐ Very Likely to Recommend 0% 2% 4% 0% 20% 40% 60% 80% 100% Loyalty ‐ Very Likely to Recommend

Pinnacle

National A y y y y

Question: Which bank do you consider to be your company’s lead bank? How likely are you to recommend a company with similar needs to your lead bank? G i h A i t M k t T ki P S l f $1 Milli t $500 Milli J N 2012 20 Greenwich Associates Market Tracking Program – Sales of $1 Million to $500 Million – – Jan. – Nov. 2012 Nashville and Knoxville combined – 622 completed interviews – Blind study, no bank identified as a sponsor during interview

Compelling Business Case

Margin outlook for 2013 is consistent with the targeted range

Opportunities: Opportunities:

• 1. Loan growth
• 2. Continued reduction in cost of funds

3 FHLB t t i li h d l t t t

• 3. FHLB restructuring accomplished over last two quarters

Threats:

• 4. Loan yields will continue to re‐price below current yields

Anticipated 2013 Margin Range 3.70% to 3.80%

21

Compelling Business Case

Management’s Focus for 2Q 2013

• Continued progress toward achievement of long‐

term financial metrics

• Continued loan growth
• Contain expenses

22

Q&A Q&A –

First Quarter 2013 Investor Call

Terry Turner, President and CEO Harold Carpenter, EVP and CFO April 16, 2013

23

Supplemental Information

First Quarter 2013 Investor Call First Quarter 2013 Investor Call

Terry Turner, President and CEO Harold Carpenter, EVP and CFO April 16, 2013

24

Supplemental Information Chart

• Balance Sheet

26

• Asset Quality

36

• Income Statement

44

• Economic Conditions & Other 49
• Pinnacle Financial Partners profile 55

25

Supplemental Information Balance Sheet

26

Balance Sheet

Loan portfolio components are within targeted ranges

Amts. 1Q13 %’s 1Q13 Amts. 4Q12 %’s 4Q12 Amts. 1Q12 %’s 1Q12 Amts. 1Q11 %’s 1Q11 C&D and Land $306.4 8.1% $313.6 8.5% $281.6 8.4% $300.7 9.3% Consumer RE 675.6 17.9% 679.9 18.3% 688.8 20.6% 698.7 21.7% CRE – Owner Occ. 618.3 16.4% 594.4 16.0% 590.4 17.7% 546.4 17.0% CRE Investment 574 6 15 2% 538 6 14 5% 491 7 14 7% 509 7 15 8% CRE – Investment 574.6 15.2% 538.6 14.5% 491.7 14.7% 509.7 15.8% Other RE loans 85.8 2.3% 45.2 1.2% 41.6 1.3% 46.4 1.5% Total real estate 2,260.7 59.9% 2,171.7 58.5% 2,094.1 62.7% 2,101.9 65.3% C&I 1,403.4 37.2% 1,446.6 39.0% 1,180.6 35.4% 1,047.7 32.6% Other loans 108.2 2.9% 93.9 2.5% 63.2 1.9% 67.8 2.1% Total loans $3,772.4 100.0% $3,712.2 100.0% $3,337.9 100.0% $3,217.4 100.0% 27 $ , $ , $ , $ ,

Balance Sheet

Exposure to residential land development is limited

Amts. 1Q13 %’s(*) 1Q13 Amts. 4Q12 %’s(*) 4Q12 Amts. 1Q12 %’s(*) 1Q12 Amts. 1Q11 %’s(*) 1Q11 Residential Spec $ 18 6 0 5% $ 17 5 0 5% $ 13 5 0 4% $ 17 0 0 5% Residential – Spec $ 18.6 0.5% $ 17.5 0.5% $ 13.5 0.4% $ 17.0 0.5% Residential – Custom 16.5 0.4% 16.6 0.4% 9.7 0.3% 11.0 0.4% Residential – Condo 4.2 0.1% 4.7 0.1% 5.9 0.2% 19.9 0.6% Commercial Constr ct 125 9 3 3% 123 0 3 3% 85 7 2 6% 39 7 1 2% Commercial Construct. 125.9 3.3% 123.0 3.3% 85.7 2.6% 39.7 1.2% Land Dev– Residential 53.4 1.4% 57.9 1.6% 64.0 1.9% 97.5 3.0% Land Dev – Commercial 86.2 2.3% 92.2 2.5% 83.1 2.5% 99.8 3.1% L d U i d 1 6 0 0% 1 7 0 0% 19 7 0 5% 15 8 0 5% Land – Unimproved 1.6 0.0% 1.7 0.0% 19.7 0.5% 15.8 0.5% Total C&D $ 306.4 8.1% $ 313.6 8.4% $ 281.6 8.4% $ 300.7 9.3%

(*) as a percentage of total loans

28

Balance Sheet

The C&I loan portfolio is highly diversified

Accommodation and Food Services, 1.3% Administrative & Support & Waste Management & Remediation Services, 2.0% Arts, Entertainment & Recreation, 0.6% Transportation & Warehousing, 2.6% Utilities, 0.1% Wholesale Trade, 3.5% Construction, 2.3% Consumer, 3.3% Educational Services, 0.3% Real Estate & Rental & Retail Trade, 1.5% Finance & Insurance, 5.3% Professional, Scientific & h l Public Administration, 0.8% Leasing, 3.0% Healthcare & Social Assistance, 4.6% Information, 1.3% Mining, Quarrying, & Oil & Gas Extraction, 0.1% Other Services (except Public Administration), 1.5% Technical Services, 2.1%

Basis: Classification based on NAIC sector as of March 31, 2013

29

Manufacturing, 2.7%

Balance Sheet

60 00% $2 500

Unfunded commitments are growing, represent potential for funding growth

5 865 $941

57.30% 59.37% 57.26% 56.82%

58.00% 60.00% $2,000 $2,500

s

$747 $715 $685 $779 $808 $787 $81 $8 $

56.15% 55.58% 55.53% 56.42%

56.00% $1,500

nded % mmitments

illions) 957 959 1,000 $975 1,009 $1,054 $1,055 $1,138 $1,105

54.00%

52.00% 54.00% $500 $1,000

Fun Total Com

(mi $ $ $1 $ $ $ $ $

50.00% $0

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13

Net active balance Unfunded Commitments Funded %

30

Balance Sheet

Bond volumes now stable as yields rise due to slowing pre‐pay speeds

3.67%

3.70% $1,050

$1,010 $973

3.58% 3.54% 3.26% 3.31% 3.27% 3.19% 3.34%

3.30% 3.50% 3.70% $950 $1,000 $1,050

$ $940 $924 $876

3.19%3.16%

2.90% 3.10% $850 $900

elds (%) ecurities 0’s)

$819 $767

2.50% 2.70% $750 $800

Bond Yie Average S (000

$720 $714

2.10% 2.30% $650 $700

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 31

Avg Investments Bond Yields

Balance Sheet

Conservative portfolio is well positioned for eventual rising rates

Asset‐ Corporates,

M nicipals

backed Securities, 2.6% Corporates, 1.4%

QTD Bond Activity

(millions)

QTD AVG rate Purchases $ 60.1 1.65%

MBS pass thru, 45.6%

Municipals, 24.9%

$ Sales ‐ ‐ Mat/Calls ($ 8.5) 1.89% Pre‐pays ($ 30.0) 2.95%

Agency Notes, 20.4% Treasuries, 0 0%

Average yield on bond portfolio = 3.34% (TEY) Average life 5 30 years

As of March 31 2013

Agency CMOs, 5.1% 0.0%

Average life = 5.30 years Effective Duration = 3.44%

As of March 31, 2013

32

Balance Sheet

Muni Allocation %

The municipal portfolio contains minimal risk

Municipal Bond Portfolio Statistics 1Q13 1Q12

81% 19%

1Q13 1Q12 Weighted Average Life 4.2 years 5.9 years % State Agency Holdings 5.4% 4.80% Tax equivalent yield 4.76% 4.90%

81%

L ti # f I B l % FMV as % of Cost 105.90% 107.10%

General Obligation Bonds Revenue Bonds

Location # of Issuances Balances % Tennessee 73 $ 40,559 21.9% Florida ‐ ‐ 0.0% California 2 784 0.4% 31, 2012 Nevada ‐ ‐ 0.0% Michigan 11 5,554 3.0% Illinois 20 15,974 8.6% Other – 30 states 180 122 564 66 1% As of December 3

All municipals are “A” rated or better.

33 Other – 30 states 180 122,564 66.1% Totals 286 $ 185,435 100.0% A

Balance Sheet

PNFP has limited dependence on non‐relationship funding

3/31/2013 Percent 3/31/2012 Percent C F di Core Funding: Transaction accounts 1,766,127 40.71% 1,451,664 35.87% Money Market accounts 1,564,517 36.06% 1,497,843 37.01% Time deposits less than $250,000 436,789 10.07% 464,994 11.49% Total Core Funding 3,767,433 86.84% 3,414,501 84.37% Non‐core funding: Relationship based non‐core funding: Time deposits Reciprocating time deposits 47,772 1.10% 95,028 2.35% Other time deposits 87,690 2.02% 95,802 2.37% Securities sold under agreements to repurchase 129,100 2.98% 118,089 2.92% Total relationship based non‐core funding 264,562 6.10% 308,919 7.63% Wholesale funding: Time deposits greater than $250,000 Public funds ‐ 0.00% ‐ 0.00% Brokered deposits ‐ 0.00% ‐ 0.00% FHLB advances 200,796 4.63% 226,032 5.59% Federal funds purchased ‐ 0.00% ‐ 0.00% Holding Company Loan 23,057 0.53% ‐ 0.00% Subordinated debt 82,476 1.90% 97,476 2.41% 34 Subordinated debt 82,476 1.90% 97,476 2.41% Total wholesale funding 306,329 7.06% 323,508 7.99% Total non‐core funding 570,891 13.16% 632,427 15.63% Totals 4,338,324 100.00% 4,046,928 100.00%

Balance Sheet

Elevated tangible common is available for deployment

8.40% 8.80% 8.70% 9.20% 8.97% 9.18%

Tangible Common Ratio

10.76% 10.85% 12.32%

Return on Tangible Common Equity

4.93% 6.13% 7.58% 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13

35

Supplemental Information

Asset Quality

36

Asset Quality

Past due loans remain very low

March 31, As a % December 31, As a % (000’s) , 2013

• f total

loans , 2012

• f total

loans Past Due Loans (*) Managed by special assets: Nonaccrual loans $15,851 0.42% $13,455 0.36% Accruing loans 3,396 0.09% 7,944 0.21% g , , Managed by relationship managers: Accruing loans 5,287 0.14% 2,932 0.08% Total past due $24 534 0 65% $24 331 0 65% Total past due $24,534 0.65% $24,331 0.65%

37 (*) > 30 days past due

Asset Quality

8 63% 9.30% 8 64%

9 0% 10.0%

s

Percentage of potential problem loans continued to decline

7.24%7.18% 8.63% 8.64% 7.65% 5 78%

7.0% 8.0% 9.0%

s/Total loans

5.78% 5.04% 4.09% 4.12% 3.78% 3.49% 3.13%

4.0% 5.0% 6.0%

• blem loans

2.84%2.57%

1.0% 2.0% 3.0%

Potential Pro

0.0%

P

38

Note: Classified loans (or loans with an identified credit weakness) that continue to accrue interest are considered potential problem loans.

Asset Quality

Classified assets decreased in 1Q13

(in thousands) Balances March 31, 2013 Balances

• Dec. 31, 2012

Balances March 31, 2012 Classified loans and ORE: ‐ Substandard commercial loans $ 132,750 $ 144,684 $ 179,040 ‐ Doubtful commercial loans 4 33 587 ‐ Other impaired loans 2,091 2,083 3,185 90 d d d i (*) 152 821 ‐ 90 days past due and accruing (*) 152 ‐ 821 ‐ Other real estate 16,802 18,580 34,019 ‐ Other repossessed assets 26 63 3 Total $ 151 825 $ 165 443 $ 217 655 Total $ 151,825 $ 165,443 $ 217,655 Pinnacle Bank classified asset ratio 26.4% 29.4% 39.3%

39

(*) Includes loans 90 days past due and accruing not included elsewhere

Asset Quality

NPLs continued to decline

NPLs Expressed as a % of Total Loans within each Category

PNFP NPLs PNFP NPLs PNFP NPLs PNFP NPLs PNFP NPLs and > 90 days 1Q13 and > 90 days 4Q12 and > 90 days 3Q12 and > 90 days 2Q12 and > 90 days 1Q12

• Const. and land development

0.57% 1.44% 1.92% 2.09% 2.48%

CRE – Owner Occupied

1.18% 1.36% 1.80% 1.84% 2.02%

CRE – Investment

0.68% 0.21% 0.75% 0.75% 1.04%

Total real estate

0 93% 0 82% 1 46% 1 63% 1 72%

Total real estate

0.93% 0.82% 1.46% 1.63% 1.72%

C&I

0.10% 0.21% 0.38% 0.44% 0.61%

Total loans

0.60% 0.61% 1.04% 1.19% 1.31%

40

Asset Quality

ORE is 43.5% of NPAs with resolution in bank’s control

Balances Fair value as a % Average March 31, 2013 (dollars in thousands)

• f book value*

Appraisal Age in Months

ORE categories: Developed lots $ 1,690 207.8% 8.15 Undeveloped land 12,222 125.4% 5.69 Other 2 890 135 3% 4 93 Other 2,890 135.3% 4.93 Total ORE $ 16,802 140.9% 6.14

• Largest ORE balance ‐ $4.1M

* Excludes costs to sell 41

Asset Quality

Current OREO valuations are below historical disposition results

ORE Dispositions (*) thru ORE Balance at thru March 31, 2013 ORE Balance at March 31, 2013 Loan balances prior to charge offs 100 0% 100 0% Loan balances prior to charge offs 100.0% 100.0% Charge off’s prior to foreclosure 17.5% 26.2% Balance @ foreclosure 82.5% 73.8% Valuation losses while in ORE 24.3% 29.9% Balance in ORE 58.2% 43.9% Loss (gain) on disposition (0.8)% Net realized 59.0%

(*) ORE dispositions > $250,000 from 4/1/12 thru 3/31/13 excluding partial sales 42

Asset Quality

OREO disposition plans suggest limited unresolved issues

(dollars in thousands) Balances Near‐term Active Other March 31, 2013 liquidation (1) Projects (2) Properties (3)

ORE categories: Developed lots $ 1,690 $ 175 $ 1,515 $ ‐ Undeveloped land 12,222 543 9,543 2,136 Other 2 890 1 148 1 175 567

(1) Market indications are that property will liquidate within 6 months

Other 2,890 1,148 1,175 567 Total ORE $ 16,802 $ 1,866 $ 12,233 $ 2,703

(2) Various properties with reasonable activity or anticipated absorption such that liquidation should be realized within 24 months (3) Other properties likely requiring a speculative investor with longer‐term workout potential

43

Supplemental Information Income Statement

44

Income Statement

Core fees progressed to highest level in firm history

1Q13 4Q12 3Q12 2Q12 1Q12 Service charges $2,480 $2,623 $ 2,532 $ 2,439 $ 2,324 Investment services 1 793 2 051 1 677 1 611 1 646 Investment services 1,793 2,051 1,677 1,611 1,646 Insurance commissions 1,393 1,045 987 1,141 1,288 Gain on mortgage loans sold, net 1,814 1,768 1,979 1,457 1,494 Trust fees 944 863 767 770 795 Trust fees 944 863 767 770 795 Other: Securities gains (losses)

• 1,988

(50) 99 114 Other 3,478 2,770 2,538 2,392 2,288 Total noninterest income $11,902 $13,108 $ 10,430 $ 9,909 $ 9,949

Less: Securities gains (losses)

• 1,988

(50) 99 114 Core noninterest income $11,902 $11,120 $ 10,480 $ 9,810 $ 9,835

45

Income Statement

$150,000 $2,500

Mortgage originations continued to be elevated

$120,000 $2,000

ld sold, net

$60,000 $90,000 $1,000 $1,500

ross Loans So (000’s) n mortgages s (000’s)

$30,000 $500

G Gain o

$‐ $‐ 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Gross Loans Sold, net Gain on Mortgage Loans Sold, net 46 46

Income Statement

1Q13 4Q12 3Q12 2Q12 1Q12 Net interest income $42 758 $42 243 $40 932 $40 185 $39 504

PNFP continues to improve operating leverage

Net interest income $42,758 $42,243 $40,932 $40,185 $39,504 Total non‐interest income $11,902 $13,108 $10,430 $9,909 $9,949 Less: Securities (gains) losses ‐ (1,988) 50 (99) (114) Non‐interest income, excluding securities (gains) losses $11,902 $11,121 $10,480 $9,810 $9,835 Total non‐interest expense $32,440 $34,851 $33,578 $33,915 $35,820 Total non interest expense $32,440 $34,851 $33,578 $33,915 $35,820 Less: ORE expenses (721) (1,365) (2,399) (3,104) (4,676) Less: FHLB restructuring charges (877) (2,092) ‐ ‐ ‐ Non‐Interest expense, excluding ORE expense and FHLB $ $ $ $ $ charges $30,842 $31,394 $31,179 $30,811 $31,144 Adjusted pre‐tax pre‐provision income $23,818 $21,969 $20,233 $19,185 $18,195 47 Efficiency ratio, excl. ORE, FHLB prepayment charges and securities gains 56.4% 58.8% 60.6% 61.6% 63.1%

Income Statement

PNFP is progressing toward strategic expense/ average asset target

1Q13 4Q12 3Q12 2Q12 1Q12 Total non‐interest expense $32,440 $34,851 $33,578 $33,915 $35,820 Less: ORE expenses (721) (1,365) (2,399) (3,104) (4,676) Less: FHLB prepayment charges (877) (2,092) ‐ ‐ ‐ Non‐Interest expense, excl. ORE & FHLB prepayment charges $30,842 $31,394 $31,179 $30,811 $31,144 Total Assets (Quarterly Average) $4,992,018 $4,964,521 $4,860,394 $4,847,583 $4,820,951 Expense*/Total Average Assets 2.46% 2.52% 2.55% 2.56% 2.60% Expense/Total Average Assets 2.59% 2.79% 2.76% 2.78% 2.96%

* Calculation excludes OREO expense and FHLB prepayment charges

48

Supplemental Information E i C di i Economic Conditions & Other

49

Economic Conditions

Nashville’s and Knoxville’s job recovery outpaces the nation

• USA recovery of jobs lost since peak
• USA recovery of jobs lost since peak

employment in 2008 has amounted to 68.0%

• Nashville has replaced greater than

100% while Knoxville has replaced 90%

50

Source: BERC – MTSU & Bureau of Labor Statistics

Economic Conditions

• Both Nashville and

Nashville’s and Knoxville’s unemployment rate out performs the state and nation

Knoxville continue to

• utperform the nation

at 6.7% and 6.6%, respectively. respectively.

• State of Tennessee

unemployment i continues to approximate USA unemployment

51

Source: BERC – Middle Tennessee State University & Bureau of Labor Statistics

Economic Conditions

Nashville’s Real Estate Market Continues to Improve

1Q2013 1Q2012 % Change Q Q % g

• Avg. Qtrly.

Median Home Price $170,333 $161,967 5.2% Quarterly Closings 4,314 3,959 9.0% Quarter end 9 923 11 787 (15 8%) Inventory 9,923 11,787 (15.8%) Months of Inventory (*) 4.8 7.4 (35.1%)

52

Source: GNAR.org – Residential home activity through 3/2013 (*) Months of Inventory calculated by dividing month end inventory by monthly closings

Economic Conditions

Nashville’s commercial vacancy rates indicate a healthy market

Nashville CRE Vacancy Rates National CRE Vacancy Rates 1Q 2013(*) YE 2012(*) YE 2011 (*) YE 2010 (*) YE 2009 (**) YE 2008 (**) 1Q 2013 (*) Industrial / Warehouse 9.1% 9.1% 10.1% 10.2% 10.6% 9.6% 8.8% *C Multifamily** 6.8% 7.0% 6.6% 6.7% 9.6% 7.6% 8.7% Retail 7.8% 7.0% 7.3% 6.7% 8.1% 6.3% 6.8% Office 8.5% 8.5% 9.7% 10.6% 12.7% 10.5% 11.9%

C f li

*Costar **REIS

Retail 14.6% Office 7 3% Other 18.6%

PNFP CRE Portfolio

7.3%

Warehouse

9.0% O /O

53

Own/Occ 50.5%

Economic Conditions

Nashville and Knoxville are healthy business markets

NASHVILLE NASHVILLE Nashville achieved “it city” status in 2012, landing on several major national publications’ lists of hot spots. Nashville’s diverse economy, thriving cultural base and strong business community are major attractions for corporations. The accolades continued in the first quarter of 2013:

• Middle TN counties rank in top 10 for job, wage growth

Bureau of Labor and Statistics KNOXVILLE p j , g g

• No. 10 for large‐city metro population growth

U.S. Census Bureau

• One of “10 Great Cities to Start a Business”

Kiplinger

• No. 27 out of 200 best‐performing big cities

Milken Institute KNOXVILLE Knoxville also enjoys a very healthy and diverse economy with an excellent transportation and technology infrastructure. The Knoxville metropolitan area currently enjoys the lowest unemployment rate of Tennessee’s metro areas. Good news on that front in the first quarter of 2013 includes:

• One of 14 metros where hiring tops pre‐recession levels

Brookings Institution One of 14 metros where hiring tops pre recession levels Brookings Institution

• 22 percent of employers plan to add jobs in 2Q13

Manpower Employment Outlook Survey 54

Supplemental Information Pi l Fi i l P P fil Pinnacle Financial Partners Profile

55

PNFP Profile

Nashville‐Davidson‐Rutherford MSA Knoxville MSA

PNFP has proven experience in market share take‐away

Rank Holding Company Market Share 6/30/12 Market Share 6/30/00 Change in Share Holding Company Market Share 6/30/12 Market Share 6/30/07 Change in Share 4 Pinnacle Financial Partners 8.4% 1.7% 6.7% Branch Banking and Trust 11.0% 6.7% 4.3% 6 US Bank 3.5% 0.3% 3.2% Pinnacle Financial Partners 3.0% 0.0% 3.0% 2 Bank of America 17.2% 15.1% 2.1% Citizens of Blount County 2.1% 2.2% ‐0.1% 5 First Horizon 6.6% 4.8% 1.8% Bank of America 1.7% 2.2% ‐0.5% 10 C St B k 1 8% 0 0% S T t 17 5% 18 1% 10 CapStar Bank 1.8% 0.0% 1.8% SunTrust 17.5% 18.1% ‐0.6% 7 Wilson County B & T 3.4% 2.5% 0.9% First National 2.4% 3.2% ‐0.8% 8 Fifth Third 3.0% 2.4% 0.6% Clayton Bank and Trust 2.1% 1.2% ‐0.9% 9 Wells Fargo 2.3% 2.2% 0.1% Home Federal Bank of TN 11.4% 12.4% ‐1.0% 0.1% 1.0% 3 SunTrust 12.2% 19.7% ‐7.5% First Horizon 18.9% 20.8% ‐1.9% 1 Regions 18.1% 30.5% ‐12.4% Regions 13.7% 17.8% ‐4.1% Other 23.5% 20.8% 2.7% Other 16.2% 15.4% 0.80%

56

Total 100% 100% Total 100% 100%

Source: FDIC Summary of Deposits 2012; Amounts reflect aggregation of previously merged banks.

PNFP Profile

PNFP operates in two great banking markets

Headquarters: Nashville, TN Founded: 2000 Offices: 29 in 8 Middle‐TN counties/3 in Knoxville

• Avg. daily trading vol.: 127,776 shares

Total assets: $ 5.068 Billion (3/31/13) Shareholders’ equity: $ 691.3 Million

• Avg. daily trading vol.: 127,776 shares

(3/31/13) % Institutional ownership: 66.2% (12/31/12)

57

(3/31/13) (12/31/12)

PNFP Profile

Name Title Age Years in Banking Years at Pinnacle

PNFP has an extraordinarily experienced management team

Banking Industry Pinnacle

• M. Terry Turner

President and Chief Executive Officer 58 34 13 Robert A. McCabe, Jr. Chairman of the Board 62 37 13 , Hugh M. Queener Chief Administrative Officer 57 26 13 Harold R. Carpenter, Jr. Chief Financial Officer 54 19 13

• J. Harvey White

Chief Credit Officer 64 39 4 Joanne B. Jackson Manager, Client Services Group 55 38 13

• D. Kim Jenny

Risk Management Officer 58 39 7 William S. Jones Rutherford County Area Executive 53 23 7*

• J. Edward White

Manager, Client Advisory Group 60 39 13 Jason K. West Manager, Special Assets Group 46 26 6*

58 * ‐ Messrs. Jones and West were executives with entities acquired by Pinnacle in 2006 and 2007, respectively.

PNFP Profile

Associate engagement drives customer satisfaction

90% 100% 4.00 5.00

nt Scores

• n Scores

80% 3.00

Engagemen r Satisfactio

60% 70% 1 00 2.00

Associate Customer

60% 1.00

Customer Satisfaction Scores Associate engagement survey positive responses

59

Customer Satisfaction Scores Associate engagement survey positive responses

First Quarter 2013 Investor Call Investor Call

Terry Turner, President and CEO Harold Carpenter, EVP and CFO April 16, 2013