Fourth Quarter 2014 Investor Call M. Terry Turner, President and - - PowerPoint PPT Presentation

Fourth Quarter 2014 Investor Call

• M. Terry Turner, President and CEO

Harold R. Carpenter, EVP and CFO January 21, 2015

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 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 maintain the historical growth of 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 retain large, uninsured deposits; (xi) the development of any new market other than Nashville or Knoxville; (xii) a merger or acquisition; (xiii) risks of expansion into new geographic or product markets; (xiv) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including intangible assets; (xv) reduced ability to attract additional financial advisors (or failure of such advisors to cause their clients to switch to Pinnacle Financial) or otherwise to attract customers from other financial institutions; (xvi) further 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 and required capital maintenance levels; (xviii) risks associated with litigation, including the applicability of insurance coverage; (xix) approval of the declaration of any dividend by Pinnacle Financial's board of directors, (xx) the vulnerability of our network and online banking portals to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches, (xxi) the possibility of increased compliance costs as a result of increased regulatory oversight and the development of additional banking products for our corporate and consumer clients, and (xxii) 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 and Pinnacle Financial's most recent quarterly report on Form 10-Q filed with the Securities and Exchange Commission on November 7, 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 report, whether as a

result of new information, future events or otherwise.

Safe Harbor Statements

3-year Target 3-year Actual

(billions of dollars)

2012-2014 Anticipated Net Loan Growth

Previously Reported Growth Current Quarter Growth 3-year Target

11.7% CAGR (1/1/2012- 12/31/2014)

$1.30 Billion 11.5% CAGR

3

Strong loan growth. PNFP exceeded its aggressive 3-year loan growth target

$1.27 Billion

4Q14 Summary Results

4

(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 $2.0 million allowance for off-balance sheet commitments

• -- : Target established in 2011-2013 strategic plan
• -- : Target established in 2014- 2016 strategic plan

PNFP’s 4Q14 profitability is already approaching elevated 2015-2016 targets

4Q14 Summary Results

0.60% 0.65% 0.93% 0.94% 1.09% 1.10% 1.09% 1.13% 1.20% 1.21% 1.25% 1.27% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% 1.10% 1.20% 1.30% 1.40% 1.50%

ROAA

3.74% 3.76% 3.78% 3.80% 3.90% 3.77% 3.72% 3.70% 3.76% 3.71% 3.79% 3.76%

3.60% 3.65% 3.70% 3.75% 3.80% 3.85% 3.90% 3.95%

Net Interest Margin

0.83% 0.81% 0.86% 0.89% 0.97% 0.87% 0.85% 0.92% 0.94% 0.89% 0.89% 0.97%

0.60% 0.65% 0.70% 0.75% 0.80% 0.85% 0.90% 0.95% 1.00% 1.05% Noninterest Income/ Average Assets (1)

2.60% 2.56% 2.55% 2.52% 2.51% 2.27% 2.44% 2.38% 2.43% 2.38% 2.34% 2.37%

1.90% 2.00% 2.10% 2.20% 2.30% 2.40% 2.50% 2.60% 2.70%

Noninterest Expense/ Average Assets (2)

0.45% 0.36% 0.31% 0.29% 0.24% 0.31% 0.27% 0.24% 0.09% 0.09% 0.11% 0.10%

0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% 0.45% 0.50%

Net Chargeoff Ratio

10.83% 12.79% 13.52% 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

ROTCE

$3,712 $4,144 $4,590 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Total EOP Loans

(millions)

$1,666 $2,038 $2,276 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Avg Trans Accts

(millions)

$12.39 $13.52 $15.62 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Tangible Book Value per Share

1.87% 1.64% 1.47% 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

ALL %

29.4% 18.5% 18.1% 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Classified Asset Ratio

1.11% 0.80% 0.61% 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

NPA %

$0.34 $0.44 $0.53 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

FD EPS

$53,363 $57,456 $64,697 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Total Revenues (1)

(millions)

4Q14 Summary Results

Balance Sheet Growth Earnings Growth Asset Quality

Up 10.8% yr/yr Up 16.1% yr/yr Up 20.5% yr/yr Up 12.6% yr/yr

Execution of fundamentals fuels exceptional growth in key valuation drivers

(1) Ex: net gains and losses on sale of investment securities

Up 15.5% yr/yr

6

Net interest income rises primarily due to volume growth in 4Q14

$36.0 $37.8 $38.4 $39.3 $39.5 $40.2 $40.9 $42.2 $42.8 $43.6 $44.6 $45.0 $45.9 $47.2 $49.5 $50.3

$34 $36 $38 $40 $42 $44 $46 $48 $50

Net Interest Income

(millions)

Loan, Deposit and Fee Growth Yield Operating Leverage

7

Average loans grew 11.4% compared to 4Q13; yields were stable

$3,191 $3,212 $3,207 $3,262 $3,280 $3,403 $3,489 $3,580 $3,682 $3,845 $3,932 $3,981 $4,130 $4,251 $4,358 $4,436

4.88% 4.34%

3.50% 4.00% 4.50% 5.00% 5.50% 6.00% $3,000 $3,200 $3,400 $3,600 $3,800 $4,000 $4,200 $4,400

Loan Yields Average Loans

(millions)

Avg Loans Loan Yields

Loan, Deposit and Fee Growth Yield Operating Leverage

8

Deposits continued to grow while cost of deposits continued to decrease

$3,772 $3,723 $3,700 $3,642 $3,597 $3,636 $3,706 $3,883 $3,950 $3,963 $4,199 $4,408 $4,509 $4,519 $4,655 $4,758

1.01% 0.20%

0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% 1.10% 1.20% $3,400 $3,500 $3,600 $3,700 $3,800 $3,900 $4,000 $4,100 $4,200 $4,300 $4,400 $4,500 $4,600 $4,700 $4,800

Deposit Costs (%)

• Avg. Deposits

(millions)

Avg Deposits Cost of Deposits

Loan, Deposit and Fee Growth Yield Operating Leverage

9

Expansion of fee businesses produces record fee revenues in 4Q14

4Q14 3Q14 2Q14 1Q14 4Q13 Service charges $3,038 $2,913 $2,966 $2,791 $2,739 Investment services 2,737 2,353 2,164 2,128 2,394 Insurance commissions 1,046 1,037 1,145 1,385 1,015 Gain on mortgage loans sold, net 1,374 1,353 1,668 1,235 1,113 Trust fees 1,274 1,109 1,072 1,146 991 Other: Securities gains (losses)

• 29
• Other

4,915 4,094 3,582 4,047 4,236 Total noninterest income $14,384 $12,888 $12,597 $12,732 $12,488 Total Assets (Quarterly Average) $5,855,421 $5,752,776 $5,673,615 $5,514,031 $5,388,371 Noninterest income/Average Assets 0.97% 0.89% 0.89% 0.94% 0.92%

Loan, Deposit and Fee Growth Yield Operating Leverage

10

Efficiency is at an all time best for PNFP

4Q14 3Q14 2Q14 1Q14 4Q13 Salaries and benefits $23,075 $21,722 $21,772 $21,750 $21,494 Equipment and occupancy 5,984 6,477 5,917 5,709 5,543 Other real estate owned (630) 417 226 651 302 Marketing and business development 1,208 946 1,065 909 1,140 Supplies and postage 717 570 544 561 559 Intangible amortization 236 236 238 238 247 Other expenses 3,801 3,992 4,140 3,828 3,352 Total noninterest expense $34,391 $34,360 $33,902 $33,646 $32,637 Efficiency ratio 53.2% 55.0% 56.7% 57.4% 56.8% Core noninterest expense ** $35,021 $33,943 $33,676 $32,995 $32,335 Total Assets (Quarterly Average) $5,855,421 $5,752,776 $5,673,615 $5,514,031 $5,388,371 Expense/Total Average Assets 2.33% 2.37% 2.37% 2.42% 2.40% Core Noninterest Expense**/Total Average Assets 2.37% 2.34% 2.38% 2.43% 2.38%

** Excludes the impact of OREO expense

Loan, Deposit and Fee Growth Yield Operating Leverage

Structural Positives – Promoting Asset Sensitivity 1.

• Avg. non-interest bearing DDAs to total avg. deposits ratio stands at 28.9%.

2. Securities portfolio has a 2.8% effective duration and represents only 12.8% of total assets. 3. Fixed rate loans amount to approximately 43% of total loans. Initiatives to Accelerate Asset Sensitivity

• 4. We have released approximately $85 million in interest rate floors on targeted prime-based loans

since June 2014. Initiated a $110 million fixed rate swap in June 2014 to help support.

• 5. Forward starting cash flow hedge locks in $200 million in future long-term, fixed-rate FHLB
• funding. First tranche begins in April 2016.

Critical Assumptions

• 6. Conservative betas (approx. 62bps on average) for interest-bearing, non-maturity deposits.

7. Timing of Federal funds rate increase remains modeled in mid-2015. 8. A flatter yield curve from our previous modeling still looking for an increase in the intermediate rates from current positions.

11

Balance Sheet Interest Rate Sensitivity

PNFP has transitioned away from liability sensitivity

0.00% 1.50% 3.00% 4.50% 6.00% $600 $800 $1,000 $1,200 $1,400 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 By-mid 2015 Loan Volumes ($ millions) Floor volumes Weighted Average Rate Contract Rate

12

Floors on loans provided meaningful earnings during low rate environment but resulted in a liability sensitive balance sheet that has now been repositioned

Balance Sheet Interest Rate Sensitivity

1.33% 0.93% 0.84% 0.73% 0.96%

Est. Floor Volumes

• f

$850mm to $950mm

13

Balance Sheet Interest Rate Sensitivity

Rate shock analysis shows position modest impact to earnings for various rate scenarios

• 2.00%
• 1.00%

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 1Q14 2Q14 3Q14 4Q14

Traditional IRR Shock Analysis

Rates up 200 Rates up 100

Note: “Shock” is one of the better tools for determining balance sheet change over time. Provides an indication as to the earnings impact from an “immediate” repricing of interest-earning assets and interest-bearing liabilities as of a quarter-end for a parallel shift in rate curve + 100 and + 200 bps.

• Modeling would indicate becoming

more asset sensitive in 2014 with a 100 or 200 bp rate scenario increase. Up 200 becomes even more asset sensitive given elimination of rate floors on loans.

14

Balance Sheet Interest Rate Sensitivity

Further evidence that balance sheet is becoming asset sensitive

$1,000 $1,250 $1,500 $1,750 $2,000 4Q13 1Q14 2Q14 3Q14 4Q14

Millions of dollars

Day 1 Rate Change Analysis

Day 1 floating rate assets Day 1 floating rate liabilities (62% - beta)

$- $50 $100 $150 $200 $250 $300

0-25 25-50 50-75 75-100 100-125 125-150 150-175 >175

Millions of dollars

Basis point differentials

Floored Loans – Rate Differentials

Over the course of 2014, we’ve experienced a decrease in the gap between day 1 rate changes from

• approx. $500 mm to $200 mm at year

end. Approximately 26% of our floating rate loans re-price in the first 25 basis point change.

Future Outlook

PNFP has targeted and delivered top quartile performance

Note: Calculated as of September 30, 2014. Peer group listed on slide 44. 15

83rd

percentile

0% 25% 50% 75% 100% ROATA ROATE Efficiency Ratio NPAs/ Assets Reserves/ Loans

PNFP's Percent Rank vs. Peer Group

Profitability Asset Quality

0.0% 50.0% 100.0% 150.0% 200.0%

Total Shareholder Return - 1 yr.

100th

percentile

0.0% 50.0% 100.0% 150.0% 200.0%

Total Shareholder Return - 3 yr.

95th

percentile

0.0% 50.0% 100.0% 150.0% 200.0%

Total Shareholder Return - 5 yr.

Future Outlook

Top quartile execution has resulted in top quartile shareholder returns

Note: Return calculated as of December 31, 2014. Peer group listed on slide 44. 16

83rd

percentile

2014 Goals & Objectives 2015 Goals and Objectives 5-Year Horizon

Double digit EPS growth – $2 FDEPS Budget in 2014 Dogged execution that produces and sustains increased results

• Expand CRE asset class
• Expand to Tennessee’s
• ther urban markets
• Chattanooga
• Memphis
• Increase assets to > $10B
• Increased capital

allocation to fee businesses that can drive shareholder value

• Continued focus on

bottom line results Achieve 3-year loan growth target established in 2012 Continue to grow loans and core deposits to achieve earnings targets and increase operating leverage Operate within our target ranges on all measures by 4Q14 Achieve elevated profitability targets Transition balance sheet toward asset sensitivity by EOP ‘14/early ‘15 Operate a modestly asset sensitive balance sheet Improve operating leverage – ER of 58.0% in ‘13 to ER of 55.5% in ’14 Increase operating leverage – further advances in ER Top quartile peer performance – w/emphasis on soundness and profitability Maintain top quartile performance

Summary and Future Outlook

17

Q&A –

Fourth Quarter 2014 Investor Call

18

Supplemental Information

Fourth Quarter 2014 Investor Call

19

Supplemental Information

20

Chart

• Balance Sheet

21

• Asset Quality

33

• Income Statement

38

• Pinnacle Financial Partners profile 41
• Economic and Market Conditions 46

Balance Sheet Supplemental Information

21

Loan portfolio is diversified and managed within targeted ranges

Balance Sheet

22 Amts. 4Q14 %’s 4Q14 Amts. 3Q14 %’s 3Q14 Amts. 4Q13 %’s 4Q13 Amts. 4Q12 %’s 4Q12 C&D and Land $322.5 7.0% $322.1 7.3% $316.2 7.6% $313.6 8.5% Consumer RE 721.2 15.7% 706.8 16.0% 695.6 16.8% 679.9 18.3% CRE – Owner Occ. 764.5 16.7% 728.1 16.5% 679.3 16.4% 594.4 16.0% CRE – Investment 596.4 13.0% 582.4 13.2% 549.1 13.2% 538.6 14.5% Other RE loans 183.1 4.0% 168.4 3.8% 155.1 3.7% 45.2 1.2% Total real estate 2,587.7 56.4% 2,507.8 56.8% 2,395.2 57.7% 2,171.7 58.5% C&I 1,784.7 38.9% 1,724.1 39.0% 1,605.5 38.7% 1,446.6 39.0% Other loans 217.6 4.7% 189.4 4.2% 143.7 3.6% 93.9 2.5% Total loans $4,590.0 100.0% $4,421.3 100.0% $4,144.5 100.0% $3,712.2 100.0%

(*) as a percentage of total loans

Balance Sheet

23

Exposure to residential land development is limited

Amts. 4Q14 %’s(*) 4Q14 Amts. 3Q14 %’s(*) 3Q14 Amts. 4Q13 %’s(*) 4Q13 Amts. 4Q12 %’s(*) 4Q12 Residential – Spec $39.8 0.9% $39.3 0.9% $28.2 0.7% $ 17.5 0.5% Residential – Custom 34.4 0.8% 31.5 0.7% 29.3 0.7% 16.6 0.4% Residential – Condo 0.5 0.0% 0.1 0.0% 3.6 0.1% 4.7 0.1% Commercial Construct. 143.1 3.1% 134.1 3.0% 131.3 3.2% 123.0 3.3% Land Dev– Residential 63.6 1.4% 61.1 1.4% 59.8 1.4% 57.9 1.6% Land Dev – Commercial 39.7 0.9% 55.1 1.3% 63.0 1.5% 92.2 2.5% Land – Unimproved 1.5 0.0% 0.9 0.0% 1.1 0.0% 1.7 0.0% Total C&D $322.6 7.1% $322.1 7.3% $316.2 7.6% $ 313.6 8.4%

$0 $100 $200 $300 $400 $500

Loan Volumes ($ millions)

Quarterly Pay Offs/ Pay Downs

24

Source: Pinnacle internal records. New loans include new fundings to new and existing clients as well as net changes in lines of credit. Pay

• ffs and pay downs include amortization and pay offs of existing loans.

Balance Sheet

$0 $100 $200 $300 $400 $500

Loan Volumes ($ millions)

Quarterly New Loan Originations

$0 $50 $100 $150 $200

Loan Volumes ($ millions)

Quarterly Net Loan Growth

$- $100 $200 $300 $400 $500

Loan Volumes ($ millions)

Annual Net Loan Growth

$446 $434 $421

PNFP achieves 3-year loan targets despite significant payoff headwinds

Balance Sheet

Basis: Classification based on NAIC sector as of December 31, 2014

The C&I loan portfolio is highly diversified

25

Accomodation and Food Services, 3.4% Administrative & Support & Waste Management & Remediation Services, 2.9% Arts, Entertainment & Recreation, 1.0% Construction, 6.2% Consumer, 7.6% Educational Services, 2.3% Finance & Insurance, 8.8% Healthcare & Social Assistance, 16.1% Information, 2.9% Management of Companies & Enterprises 0.5% Manufacturing, 6.7% Mining, Quarrying, & Oil & Gas Extraction, 0.2% Other Services (except Public Administration), 2.9% Professional, Scientific & Technical Services, 4.7% Public Administration, 4.0% Real Estate & Rental & Leasing, 9.5% Retail Trade, 6.2% Transportation & Warehousing, 7.0% Utilities, 0.1% Wholesale Trade, 3.5%

Loan growth is primarily funded by growth in low cost deposits

26

Balance Sheet

% of Deposits by Type to Total Deposits

• Avg. Loan & Trans, Savings and MMA Account Growth

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Trans Accts MMDAs CDs 50.00% 55.00% 60.00% 65.00% 70.00% 75.00% 80.00% 85.00% 90.00% 95.00% 100.00%

• 300
• 200
• 100

100 200 300 400 500 600 700 800 Net loan growth Trans, Savings, MMDA growth Average loans to average deposits

Balance Sheet

27

PNFP maintains limited dependence on non-relationship funding

$957 $959 $1,000 $975 $1,009 $1,054 $1,055 $1,138 $1,105 $1,166 $1,190 $1,216 $1,247 $1,349 $1,375 $1,376 $747 $715 $685 $779 $808 $787 $815 $865 $941 $926 $989 $1,024 $1,028 $1,046 $1,131 $1,177 56.15% 53.89%

30% 35% 40% 45% 50% 55% 60% $0 $500 $1,000 $1,500 $2,000 $2,500

Funded % Total Commitments

(millions)

Net active balance Unfunded Commitments Funded %

Line commitments are up 15.0% over 4Q13 but utilization remains low

28

Note: Excludes HELOCS and credit cards

Balance Sheet

29

Balance Sheet

The securities book is maintained at a minimal level

$1,010 $973 $940 $924 $876 $819 $767 $720 $714 $746 $739 $732 $749 $782 $768 $760

3.58% 2.81% 20.75% 12.99% 0.00% 2.50% 5.00% 7.50% 10.00% 12.50% 15.00% 17.50% 20.00% 22.50% 25.00% $650 $700 $750 $800 $850 $900 $950 $1,000 $1,050

Average Securities (000’s)

• Avg. Securities

Bond Yields % of Avg. Assets

Conservative bond portfolio

Investment Portfolio

30

Portfolio: December 31, 2014

Total Investments $771 million Unrealized Gain (Loss) $13.5 million QTD Purchases $44.2 million QTD Sales $ 0.0 million Duration Avg Yield - TE 4Q14 2.8% 2.8% 3Q14 3.0% 2.9% 2Q14 3.1% 2.9% 1Q14 3.5% 3.0%

4Q13

4.6 % 3.2% 15.8% 1.4% 50.1% 1.8% 8.6% 22.3%

Agency Corporates MBS Asset Backed CMOs Municipals

As of 12/31/2014 Book Yield Avg Life (yrs) Agency 2.29% 9.0 Asset Backed 1.31% 0.8 Corporates 4.16% 3.9 CMOs 1.51% 3.6 MBS 2.30% 4.0 Municipals 4.61% 3.4 Total 2.81% 4.6

• Investment portfolio at $771 million, up $38

million vs Dec 2013 – MBS sector at 50% of portfolio

• Duration trending downward with minimal

dilution in overall yields

• Purchases focused on reducing extension risk
• Investments to Total Assets of 12.8% as of 12/31

76% 24% Muni Allocation % General Obligation Bonds Revenue Bonds

The municipal portfolio contains minimal risk

Balance Sheet

31 Location # of Issuances Market Value % Tennessee 65 $39,389 22.2% California 1 255 0.1% Michigan 7 3,812 2.1% Illinois 19 15,387 8.7% Other – 30 states 156 118,523 66.9% Totals 248 $177,366 100.0% As of September 30, 2014 Municipal Bond Portfolio Statistics 4Q14 4Q13 Weighted Average Life 3.4 years 4.4 years % State Agency Holdings 5.25% 4.95% Tax equivalent yield 4.61% 4.53% FMV as % of Cost 104.9% 104.1%

All municipals are “A” rated or better.

32

Balance Sheet

9.18% 8.75% 9.03% 8.96% 9.27% 9.31% 9.52% 9.64%

12.41% 13.52%

11.50% 12.00% 12.50% 13.00% 13.50% 14.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Return on Tangible Common Equity Tangible Common Ratio

Tier One Common Ratio ROTCE

Elevated tangible common is available for deployment

Supplemental Information

Asset Quality

33

34

Past due loans remain very low

Asset Quality

(*) > 30 days past due

(000’s)

• Dec. 31,

2014 As a % of total loans

• Sept. 30,

2014 As a % of total loans

• Dec. 31,

2013 As a %

• f total

loans Past Due Loans (*) Nonaccrual loans $7,058 0.15% $6,069 0.14% $7,336 0.18% Accruing loans $18,330 0.40% 14,099 0.32% 16,289 0.39% Total past due $25,388 0.55% $20,168 0.46% $23,625 0.57%

35

NPLs remain very low

Asset Quality

(000’s) PNFP NPLs and >90 days

• Dec. 31,

2014 As a % of total loans

• Sept. 30,

2014 As a % of total loans

• Dec. 31,

2013 As a % of total loans

• Const. and land development

$5,173 0.11% $5,475 0.12% $1,069 0.34% CRE – Owner Occupied 4,313 0.09% 7,486 0.17% 7,750 1.14% CRE – Investment

• 3,258

0.59% Total real estate 14,089 0.31% 19,208 0.43% 17,609 0.74% C&I 1,614 0.04% 2,023 0.05% 3,390 0.21% Total loans $17,027 0.37% $21,734 0.49% $21,529 0.51% NPLs Expressed as a % of Total Loans within each Category

36

Asset Quality

Classified assets remain very low

(in thousands) Balances

• Dec. 31, 2014

Balances

• Sept. 30, 2014

Balances

• Dec. 31, 2013

Classified loans and ORE:

• Substandard commercial loans

$102,077 $110,389 $91,445

• Doubtful commercial loans
• Other impaired loans

5,162 5,660 4,659

• 90 days past due and accruing (*)

322 83

• Other real estate

11,186 12,329 15,226

• Other repossessed assets

686 413 262 Total $119,433 $128,874 $111,593 Pinnacle Bank classified asset ratio 18.1% 20.0% 18.4%

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

• Largest ORE balance - $4.1M

* Excludes an estimate for costs to sell

37

Asset Quality

(dollars in thousands) Balances

• Dec. 31, 2014

Fair value as a % of book value* Average Appraisal Age in Months ORE categories: Developed lots $275 209.4% 6.85 Undeveloped land 9,240 137.9% 4.85 Other 1,671 124.6% 3.97 Total ORE $11,186 137.7% 4.88 (dollars in thousands) Balances

• Dec. 31, 2014

Near-term liquidation (1) Active Projects (2) Other Properties (3) ORE categories: Developed lots $ 275 $ 129 $ 146 $ - Undeveloped land 9,240 359 8,029 852 Other 1,671 1,671

• Total ORE

$11,186 $2,159 $8,175 $ 852

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

Current OREO valuations appear reasonable

Income Statement Supplemental Information

38

39

Income Statement

Mortgage volumes rise due to growth in “purchase money” transactions

39 1.59% 2.95% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 20,000 40,000 60,000 80,000 100,000 120,000 140,000 Purchase Money Refinance Gross fees as a % of loans originated

Income Statement

40 4Q14 3Q14 2Q14 1Q14 4Q13 Net interest income $50,313 $49,537 $47,226 $45,908 $44,969 Total non-interest income $14,384 $12,888 $12,598 $12,732 $12,488 Less: Securities (gains) losses

• (29)
• Non-interest income, excluding the impact of net gains

(losses) on sale of investment securities $14,384 $12,859 $12,598 $12,732 $12,488 Total non-interest expense $34,391 $34,360 $33,902 $33,646 $32,637 Less: ORE expenses 630 (417) (226) (651) (302) Non-Interest expense, excluding ORE expense $35,021 $33,943 $33,672 $32,995 $32,335 Adjusted pre-tax pre-provision income $29,676 $28,453 $26,148 $25,645 $25,122 Efficiency ratio, excl. ORE and securities gains and losses 54.1% 54.4% 56.3% 56.3% 56.3%

PNFP efficiency ratio reflect excellent operating leverage

Pinnacle Financial Partners Profile Supplemental Information

41

PNFP Profile

42

Headquarters: Nashville, TN Founded: 2000 Total assets: $ 6.019 Billion (12/31/14) Shareholders’ equity: $ 802.8 Million (12/31/14) Offices: 29 in 8 Middle-TN counties 5 in Knox County

• Avg. daily trading volume **: 116,558 shares

% Institutional ownership: 71.74% (9/30/14)

PNFP operates in two great banking markets

**: 50 day average daily volume per NASDAQ.com

PNFP Profile

43

Name Title Age Years in Banking Industry Years at Pinnacle

• M. Terry Turner

President and Chief Executive Officer 59 36 14 Robert A. McCabe, Jr. Chairman of the Board 64 38 14 Hugh M. Queener Chief Administrative Officer 59 39 14 Harold R. Carpenter, Jr. Chief Financial Officer 55 32 14

• J. Harvey White

Chief Credit Officer/ Knoxville Regional Executive 65 40 5 Joanne B. Jackson Manager, Client Services Group 57 39 14

• D. Kim Jenny

Risk Management Officer 60 40 8 William S. Jones Rutherford County Area Executive 55 32 8*

• J. Edward White

Manager, Client Advisory Group 62 40 14 Missy Wallen Knoxville Chairman 61 42 ** Mike Distefano Knoxville President 53 29 7

* - Mr. Jones was an executive with an entity acquired by Pinnacle in 2006. ** - Mrs. Wallen joined Pinnacle in July 2014.

PNFP has an extraordinarily experienced management team

PNFP Profile

• Pinnacle Financial Partners (PNFP)
• 1st Source Corporation (SRCE)
• Brookline Bancorp, Inc. (BRKL)
• Columbia Banking System, Inc.

(COLB)

• CVB Financial Corp. (CVBF)
• Eagle Bancorp, Inc. (EGBN)
• First Busey Corporation (BUSE)
• First Financial Bancorp. (FFBC)
• Flushing Financial Corp (FFIC)
• Independent Bank Corp. (INDB)
• National Penn Bancshares, Inc.

(NPBC)

• Old National Bancorp (ONB)
• Sandy Springs Bancorp, Inc. (SASR)
• SCBT Financial Corp (SCBT)
• Sterling Bancorp (STL)
• TowneBank (TOWN)
• Union First Market Bkshs Co (UBSH)
• ViewPoint Financial Group, Inc.

(VPFG)

• Westamerica Bancorporation

(WABC)

• Western Alliance Bancorporation

(WAL)

44

PNFP compares favorably to high performing peers

PNFP Profile

45 Nashville-Davidson-Rutherford MSA Knoxville MSA

Top 10 Market Share Rank Holding Company Market Share 6/30/14 Market Share 6/30/00 (1) Change in Share Top 10 Market Share Rank Holding Company Market Share 6/30/14 Market Share 6/30/07 (1) Change in Share 4 Pinnacle Financial Partners 9.36% 1.70% 7.66% 6 Pinnacle Financial Partners 3.45% 0.00% 3.45% 6 US Bank 3.63% 0.30% 3.33% 5 Branch Banking and Trust 7.96% 6.70% 1.26% 10 CapStar Bank 1.98% 0.00% 1.98% 10 Clayton Bank and Trust 1.72% 1.20% 0.52% 5 First Horizon 6.46% 4.80% 1.66% 7 Bank of America 2.25% 2.20% 0.05% 7 Fifth Third 3.40% 2.40% 1.00% 9 Citizens of Blount County 1.80% 2.20%

• 0.40%

8 Wilson County B & T 3.39% 2.50% 0.89% 8 First National 2.16% 3.20%

• 1.04%

9 Wells Fargo 3.03% 2.20% 0.83% 4 Home Federal Bank of TN 10.89% 12.40%

• 1.51%

1 Bank of America 15.55% 15.10% 0.45% 2 SunTrust 16.16% 18.10%

• 1.94%

3 SunTrust 12.37% 19.70%

• 7.33%

1 First Horizon 18.19% 20.80%

• 2.61%

2 Regions 15.19% 30.50%

• 15.31%

3 Regions 14.68% 17.80%

• 3.12%

Other 25.64% 20.80% 4.84% Other 20.74% 15.40% 5.34% Total 100% 100% Total 100% 100%

PNFP has a track record for “best-in-market” share movement

Source: FDIC Summary of Deposits 2014; Amounts reflect aggregation of previously merged banks. (1): First year Pinnacle’s deposits were reflected in FDIC Summary of Deposits data. Market share at 6/30/00 for Nashville reflects impact of Cavalry Bancorp, Inc. which was acquired by Pinnacle in March of 2006.

Economic & Market Conditions Supplemental Information

46

Business Relo’s and Expansion Remain Strong

47

PNFP operates in advantaged markets

Source: Nashville Area Chamber of Commerce

National Recognition for Tennessee & Nashville

48

PNFP operates in advantaged markets

Source: Nashville Area Chamber of Commerce

Nashville and Knoxville are healthy business markets

49

PNFP operates in advantaged markets

TENNESSEE

• Tennessee is named “2014 State of the Year” for economic development

Business Facilities Magazine

• Tennessee ranks No. 1 in foreign investment jobs

IBM Institute NASHVILLE Nashville has achieved “it city” status, 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. Accolades for 2014 include:

• Nashville named one of hottest cities for 2015

Business Insider

• Nashville called a top place to live and work in 2014

NerdWallet

• Nashville’s economy is among the 10 fastest-growing in the country

FORBES

• Nashville ranked No. 2 in study of most cost-attractive mid-sized cities for business

KPMG LLP

• Nashville ranked No. 2 on manufacturing revival list

FORBES 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 in 2014 included:

• Knoxville named a Best Place to Retire

Livability.com

• Knoxville listed as fifth “most affordable city”

FORBES

• Knoxville named a “millennial magnet” for attracting large numbers of young adults

USA TODAY

• Knoxville ranked No. 12 among cities with the fastest-decreasing gender pay gaps

NerdWallet

• Knoxville ranked No. 2 “Best Mid-Size City for College Graduates”

MyLife

Nashville’s Economic Drivers Healthy and Growing

50

PNFP operates in advantaged markets

Source: Nashville Area Chamber of Commerce

Nashville Cost of Living a Strategic Advantage for Business

51

PNFP operates in advantaged markets

52

PNFP operates in advantaged markets

Rapid job growth leads to rapid real estate absorption

Source: BERC – Middle Tennessee State University & Bureau of Labor Statistics, Greater Nashville Area Realtors

Nashville Home Sales

4Q2014 3Q2014 4Q2013 % Change

• Avg. Qtrly.

Median Home Price $211.5 $217.1 $197.9 6.8% Quarterly Closings 6,924 7,945 6,017 15.1% Quarter end Inventory 7,623 9,924 8,228 (7.4%) Months of Inventory* 3.24 3.91 4.05 (20.0%)

*: Calculated as quarter end inventory divided by monthly closings

Nashville’s commercial vacancy rates indicate a healthy market

**Costar thru 4Q14 ***REIS thru 4Q09

PNFP Operates in Advantaged Markets

53 Nashville CRE Vacancy Rates National CRE Vacancy Rates YE 2014(**) YE 2013 (**) YE 2012 (**) YE 2011 (**) YE 2010 (**) YE 2009 (***) YE 2008 (***) YE 2014 (**) Industrial / Warehouse 7.1% 8.7% 9.1% 10.1% 10.2% 10.6% 9.6% 7.2% Multifamily** 8.1% 7.9% 7.0% 6.6% 6.7% 9.6% 7.6% 9.9% Retail 6.4% 7.3% 7.0% 7.3% 6.7% 8.1% 6.3% 6.1% Office 6.7% 7.9% 8.5% 9.7% 10.6% 12.7% 10.5% 10.9%

Retail 14.2% Office 7.0%

Warehouse

7.4% Own/Occ 49.5% Other 22.0%

PNFP CRE Portfolio*

*: As of 12/31/14

Fourth Quarter 2014 Investor Call

• M. Terry Turner, President and CEO

Harold R. Carpenter, EVP and CFO January 21, 2015