First Quarter 2014 Investor Call Terry Turner, President and CEO - PowerPoint PPT Presentation

First Quarter 2014 Investor Call Terry Turner, President and CEO Harold Carpenter, EVP and CFO April 15, 2014

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 of 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 anticipate, goal, objective, intend, plan, believe, should, seek, estimate and similar expressions are intended to identify such forward ‐ looking statements, but other statements not based on historical information may also be considered forward ‐ looking. All forward ‐ looking statements are subject to risks, uncertainties and other 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 of 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; (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 ‐ Davidson ‐ Murfreesboro ‐ Franklin MSA and the Knoxville MSA, particularly in commercial and residential real estate markets; (viii) rapid fluctuations or unanticipated changes in interest rates on loans or deposits; (ix) the results of regulatory examinations; (x) the ability to fluctuations or unanticipated changes in interest rates on loans or deposits; (ix) the results of regulatory examinations; (x) the ability to retain large, uninsured deposits; (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 other financial institutions; (xv) further deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xvi) inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies and required capital with regulatory capital requirements, including those resulting from changes to capital calculation methodologies and required capital maintenance levels; (xvii) risks associated with litigation, including the applicability of insurance coverage; (xviii) approval of the declaration of any dividend by Pinnacle Financial’s board of directors and, (xix) 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 of the Dodd ‐ Frank Wall Street Reform and Consumer Protection Act. A more detailed description of these and other risks is contained in Pinnacle Financial's most recent annual report on Form 10 ‐ K filed with the Securities and Exchange Commission on February 25, 2014. 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 release, whether as a 2 result of new information, future events or otherwise.

1Q14 Summary Results Execution of fundamentals fuels exceptional growth in key valuation drivers Growth Total Loans Avg Trans Accts Tangible Book Value $13.93 $4,144 $4,182 $13.52 Up 10.9% yr/yr (millions) (millions) per Share $13.22 Up 18.7% yr/yr $1,991 $ , $2,050 $3,925 $3,969 $3 969 Balance Sheet $ $ $12.78 $12.64 $1,883 $3,712 $3,772 $1,803 $12.39 $1,666 $1,727 4Q12 4Q12 1Q13 1Q13 2Q13 2Q13 3Q13 3Q13 4Q13 4Q13 1Q14 1Q14 4Q12 4Q12 1Q13 1Q13 2Q13 2Q13 3Q13 3Q13 4Q13 4Q13 1Q14 1Q14 4Q12 4Q12 1Q13 1Q13 2Q13 2Q13 3Q13 3Q13 4Q13 4Q13 1Q14 1Q14 B Total Revenues (1) FD EPS ROTCE s Growth $58,644 $0.47 Up 20.5% yr/yr (millions) 13.47% $0.44 $57,401 $57,456 Up 7.3% yr/yr $0.42 $0.42 12.41% 12.75% 12.73% 12.81% $0.39 $54 949 $54,949 Earnings $54,661 $0.34 $53,363 10.83% 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 (1) Ex: net gains and losses on sale of investment securities (1) Ex: net gains and losses on sale of investment securities NPA % ALL % ALL Coverage Ratio 1.11% 1.87% 1.84% 432.7% t Quality 1.02% 1.75% 1.70% 0.93% 0.89% 317.9% 334.1% 1.64% 1.61% 373.8% 0.80% 336.6% 0.73% Asset 304.2% 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

1Q14 Summary Results PNFP is now at the mid ‐ point of its long ‐ term return on asset target range Net Interest Margin Noninterest Income/ Average Assets (1) 3.95% 1.00% Return on Average Assets g 0.96% 3.90% 0.97% 0.92% 0 94% % 0.94% 0 93% 0.93% 0 95% 0.95% 3.90% 0.89% 1.40% 0.90% 0.86% 3.85% 3.80% 0.83% 0.85% 3.78% 3.80% 3.77% 0.81% 1.30% 3.76% 3.76% 0.80% 3.74% 3.75% 3.72% 1.20% 0.75% 3.70% 1.20% 3.70% 0.70% 1.10% 1.13% 3.65% 0.65% 1.09% 1.09% 1.10% 3.60% 0.60% 1.00% 0.94% 0.93% Noninterest Expense/ Average Assets (2) Net Charge ‐ off Ratio 0.90% 0 90% 2.70% 2 70% 0.50% 2.60% 2.56% 2.55% 0.44% 2.60% 0.45% 2.52% 2.51% 0.40% 0.80% 0.36% 2.50% 2.44% 2.43% 0.35% 2.38% 2.40% 0.28% 2.27% 0.30% 0.24% 0.24% 0.70% 0.65% 2.30% 0.22% 0.25% 0.21% 0 60% 0.60% 0 20% 0.20% 2.20% 2 20% 0.15% 0.60% 0.15% 2.10% 0.09% 0.10% 2.00% 0.05% 0.50% 1.90% 0.00% (1) ‐ Calculation excludes net gains and losses on the sale of investment securities and in the second quarter of 2013 noncredit related loan losses (2) ‐ Calculation excludes OREO expense and FHLB prepayment charges. Noninterest expense for 2Q13 includes the impact of the reversal of a 4 $2.0 million allowance for off ‐ balance sheet commitments

1Q14 Summary Results Net loan growth rate approximates the three year growth target 2012 ‐ 2014 Anticipated Net Loan Growth 11.2% CAGR (1/1/2012 ‐ 3/31/2014) 10.9% AGR (Last 4 Quarters) Previously reported growth $891.0 million net growth thru Current quarter growth Thru 1Q2014 1Q2014 Financial Advisor capacity p y 11.5% CAGR FA Capacity FA Capacity $1 27 Billion Capacity $1.27 Billion Capacity $1 27 Billi $1.27 Billion Target T t (billions of dollars) 5

Loan, Deposit and Fee Growth Yield Operating Leverage Annual loan growth is reliable despite wide quarterly variation Annual Net Loan Growth Quarterly Net Loan Growth $200 $200 $500 $500 Loan Volumes Loan Volumes ($ millions) ($ millions) $150 $434 $425 $100 $400 $411 $50 $0 $300 * : $411 is the required production for 2014 to achieve the 3 ‐ year growth target of $1.27 billion Quarterly New Loan Originations Quarterly New Loan Originations Quarterly Pay Offs/ Pay Downs Quarterly Pay Offs/ Pay Downs $500 $500 Loan Volumes ($ millions) oan Volumes ($ millions) $400 $400 $300 $300 $200 $ $200 $200 Lo L $100 $100 $0 $0 Source: Pinnacle internal records. New loans include new fundings to new and existing clients as well as net changes in lines of credit. Pay Source: Pinnacle internal records. New loans include new fundings to new and existing clients as well as net changes in lines of credit. Pay offs and pay downs include amortization and pay offs of existing loans. 6

Loan, Deposit and Fee Growth Yield Operating Leverage Net interest income grew as volumes and margin expanded in 1Q14 $46 4.00% 9 $45.9 3.90% 3.90% $45.0 $44.6 $44 3.80% 3.76% 3.80% $43.6 $ 3.76% 3.78% 3 78% $42.8 st Income $42 3.70% 3.77% t Margin 3.74% $42.2 3.72% 3.70% 3.65% 3.60% $40.9 3.60% $40 ons) 0.2 $40 Net Interes 3 50% 3.50% (millio Net Interes 3.55% $39.5 $39.3 $38 3.40% $38.4 3.40% $37.8 3.30% N N $36 $36.0 3.20% $34 3.10% Net Interest Income Net Interest Margin 7

Loan, Deposit and Fee Growth Yield Operating Leverage Average loans grew meaningfully while loan yields flattened in 1Q14 $ , $4,200 6.00% $4,100 $4,130 $4,000 5.50% $3,981 $3,900 932 $3,9 $ age Loans $3,800 $3,845 n Yields 5.00% 4.88% $3,700 (millions) $3,682 $3,600 80 Avera $3,58 $ $3,500 ( Loa 4.50% $3,489 $3,400 $3,403 4.30% $3,300 4.28% 4.00% 280 62 $3 200 $3,200 $3,2 $3,2 $3,212 $3,207 $3,191 $3,100 $3,000 3.50% Avg Loans Loan Yields 8