Investor Call SECOND QUARTER 2020 July 22, 2020 Time: 8:30 AM CDT - - PowerPoint PPT Presentation
Investor Call SECOND QUARTER 2020 July 22, 2020 Time: 8:30 AM CDT Webcast: www.pnfp.com (investor relations) Audio only: 877-602-7944 M. TERRY TURNER, PRESIDENT AND CEO HAROLD R. CARPENTER, EVP AND CFO TIM HUESTIS, EVP AND CHIEF CREDIT
SECOND QUARTER 2020
HAROLD R. CARPENTER, EVP AND CFO TIM HUESTIS, EVP AND CHIEF CREDIT OFFICER
July 22, 2020
Time: 8:30 AM CDT Webcast: www.pnfp.com (investor relations) Audio only: 877-602-7944
Safe Harbor Statements
Forward Looking Statements
All statements, other than statements of historical fact, included in this presentation, 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) further deterioration in the financial condition of borrowers of Pinnacle Bank and its subsidiaries or BHG resulting in significant increases in loan losses and provisions for those losses and, in the case of BHG, substitutions; (ii) the further effects of the emergence of widespread health emergencies or pandemics, including the magnitude and duration of the COVID-19 pandemic and its impact on general economic and financial market conditions and on Pinnacle Financial's and its customers' business, results of operations, asset quality and financial condition; (iii) the ability to grow and retain low-cost core deposits and retain large, uninsured deposits, including during times when Pinnacle Bank is seeking to lower rates it pays on deposits; (iv) the inability of Pinnacle Financial, or entities in which it has significant investments, like BHG, to maintain the historical growth rate of its, or such entities', loan portfolio; (v) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (vi) effectiveness of Pinnacle Financial's asset management activities in improving, resolving or liquidating lower-quality assets; (vii) 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 compression to net interest margin; (viii) adverse conditions in the national or local economies including in Pinnacle Financial's markets throughout Tennessee, North Carolina, South Carolina, Georgia and Virginia, particularly in commercial and residential real estate markets; (ix) 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; (x) the results of regulatory examinations; (xi) Pinnacle Financial's ability to identify potential candidates for, consummate, and achieve synergies from, potential future acquisitions; (xii) difficulties and delays in integrating acquired businesses or fully realizing costs savings and other benefits from acquisitions; (xiii) BHG's ability to profitably grow its business and successfully execute on its business plans; (xiv) risks of expansion into new geographic or product markets including the recent expansion into the Atlanta, Georgia metro market; (xv) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including goodwill or other intangible assets; (xvi) 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; (xvii) deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xviii) 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; (xix) approval of the declaration of any dividend by Pinnacle Financial's board of directors; (xx) 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; (xxi) 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; (xxii) the risks associated with Pinnacle Financial and 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; (xxiii) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, like BHG, including regulatory or legislative developments; (xxiv) the availability of and access to capital; (xxv) 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, including as a result of Pinnacle Bank's participation in and execution of government programs related to the COVID-19 pandemic; and (xxvi) 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, 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 presentation, which speak only as
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Safe Harbor Statements
Non-GAAP Financial Matters
This presentation contains certain non-GAAP financial measures, including, without limitation, earnings per diluted common share, efficiency ratio 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, the charges associated with Pinnacle Financial's branch rationalization project, FHLB restructuring expenses, the sale of the remaining portion of Pinnacle Bank's non-prime automobile portfolio and other matters for the accounting periods presented. This presentation also includes non-GAAP financial measures which exclude the impact of loans originated under the PPP. This presentation 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
financial measures presented in this presentation 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 2020 versus certain periods in 2019 and to internally prepared projections.
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Increased liquidity Increased allowance Increased capital Reduce the noninterest expense build by limiting hiring
We have and will continue to build liquidity, reserves and capital during the crisis
Despite the difficult operating environment, our key success measures such as asset quality, loan and core deposit growth, deposit betas, fee growth, pre-provision net revenue growth and tangible book value accretion were all very strong this quarter.
2Q20 Summary Results of Key GAAP Measures
6 Total Revenues Total Deposits
(millions)
FD EPS Book Value per Common Share Net Income NPA/ Loans & OREO Classified Asset Ratio NCOs
Total Loans
(millions)
0.35% 0.17% 0.10% 0.09% 0.10%
NCOs
$19.58 $22.58 $25.28 $30.26 $34.43
Tangible Book Value per Common Share**
$ 53,251 $ 73,233 $ 122,992 $ 143,628 $ 147,892
Adjusted Pre-Tax Pre-Provision Net Income* (millions)
19.3% 14.2% 12.6% 13.9% 11.2%
Classified Asset Ratio
0.55% 0.44% 0.53% 0.55% 0.38%
NPA/ Loans & OREO
$6,591 $13,529 $15,400 $16,504 $21,392
Total Core Deposits
(millions)
$0.75 $0.84 $1.15 $1.42 $0.89
FD EPS*
$7,091 $14,759 $17,042 $18,814 $22,520
Total Loans
(millions)
$107,757 $141,684 $230,175 $264,066 $273,739
Total Revenues
CAGR 20.5%
2Q20 Summary Results of Key Non-GAAP Measures
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*: excluding merger-related charges, gains and losses on sales of investment securities, ORE expense (income), loss on sale of non-prime automobile portfolio, branch rationalization charges, FHLB restructuring charges and revaluation of deferred tax assets **: excluding goodwill, core deposit and other intangible assets Note: For a reconciliation of these Non-GAAP financial measures to the comparable GAAP measures, see slides 66-67.
CAGR 26.0% CAGR 26.5% CAGR 12.0% CAGR 22.7%
Balance Sheet Growth was Strong Owing In Part to PPP
Core loan growth in 2Q20 was above expectations before impact of net line draws/ paydowns
$4,130 $4,251 $4,358 $4,436 $4,625 $4,737 $5,690 $6,458 $6,742 $6,998 $8,233 $8,357 $8,558 $9,817 $15,017 $15,520 $15,957 $16,730 $17,259 $17,630 $17,938 $18,611 $19,217 $19,600 $20,009 $22,257
4.30% 4.16% 3.40% 3.60% 3.80% 4.00% 4.20% 4.40% 4.60% 4.80% 5.00% 5.20% 5.40% $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000
Loan Yields Average Loans
(millions) BNCN
8 14.2% 14.6% 18.7% 13.3% 11.7% 9.9% 17.2% 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% 28.0% 32.0%
Annual Organic Loan Growth
(excludes Day 1 merger impact)
Impact of PPP Organic Growth *: Annualized growth for the first half of 2020
Average Loan Growth
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16.3% 11.8% 16.9% 14.6% 7.1% 30.2% 16.90%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%
Annual Organic Deposit Growth
(excludes Day 1 merger impact)
Organic Growth
Balance Sheet Growth was Strong Owing In Part to PPP
Deposit growth was unseasonably strong in Q2 even after eliminating the estimated impact of PPP
$4,510 $4,519 $4,655 $4,758 $4,792 $4,885 $5,898 $6,787 $7,037 $7,093 $8,454 $8,791 $9,099 $10,394 $15,828 $16,092 $16,281 $16,949 $18,113 $18,368 $18,358 $18,865 $19,778 $20,079 $20,680 $24,807
0.23%
0.55%
0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% 2.50% 2.75% 3.00% $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000 $26,000
EOP FFS Target Cost of Deposits
Deposit Rates
*: Annualized growth for the first half of 2020
Average Deposit Growth
Margin Contracted as Balance Sheet Repositioned for Potential Impacts of COVID-19
Loan yields contracted along with major indices
Note: Weighted Average EOP Coupon Trends – excluding PPP loans, leases and credit cards and the impact of purchase accounting adjustments and impact from early payoffs which result in immediate recognition of deferred fees and prepayment penalties and increase actual yields.
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At June 30, 2020 (*)
37.7% 15.8% 4.0% 4.6% 38.0%
All Loans
LIBOR Prime T-Bill Fixed Rate <1Y Fixed Rate >1Y
46.0% 17.3% 0.8% 35.6%
C&I
38.8% 3.5% 4.3% 53.1%
CRE
49.6% 27.5% 1.5% 21.2%
Construction
Rate Index End-of-Period Weighted Average Coupon New Loans Weighted Average Coupon for the Quarter Origination Mix
YOY Change 3Q19 4Q19 1Q20 2Q20 2Q20 LIBOR 4.79% 3.80% 2.85% (1.94)% 4.49% 4.13% 3.51% 3.15% 39.3%
1-MO LIBOR 2.37% 0.99% 0.16% (2.21)% 2.18% 1.79% 1.43% 0.35%
Prime 5.75% 3.99% 3.99% (1.76)% 5.36% 4.98% 4.00% 3.94% 24.5%
FFS target 2.50% 0.25% 0.25% (2.25)% 2.00% 1.75% 1.40% 0.25 %
Fixed rate 4.60% 4.45% 4.35% (0.25)% 4.65% 4.28% 4.16% 3.99% 31.7%
5-YR UST 1.76% 0.37% 0.29% (1.47)% 1.63% 1.61% 1.14% 0.36%
Margin Contracted as Balance Sheet Repositioned for Potential Impacts of COVID-19
PNFP lowered COF and has achieved a 45% deposit beta since 6/30/2019 – more deposit rate reductions expected
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Deposit Rate Tranches
EOP Rates
2020 EOP Rates
EOP Rates
20 Change in EOP rates Deposit Beta 2.25% at 6/19 -0% at 6/20 June 30, 2020 % of Totals Noninterest bearing
Interest-bearing: Rate sheet 0.20% 0.10% 0.10% (0.10)% 4.4% 12.6% Negotiated 1.66% 0.48% 0.44% (1.22)% 54.2% 33.1% Indexed 2.43% 0.70% 0.32% (2.11)% 93.8% 9.8% CDs 2.32% 2.00% 1.59% (0.73)% 32.4% 17.5% Total interest-bearing 1.66% 0.82% 0.64% (1.02)% 45.3% 73.0% Total 1.28% 0.63% 0.47% (0.81)% 36.0% 100.0%
Liquidity Sources ($mm) At 6.30.20 At 3.31.20 Cash and FFS $ 2,224.3 $ 843.3 Unpledged investments 3,012.4 2,819.9 Total on-balance sheet 5,236.7 3,663.2 Other available sources: FHLB capacity 2,357.9 1,777.7 Fed programs (1) 3,264.4 3,415.6 Totals $ 10,859.0 $ 8,856.5
3.55% 3.17% 2.93% 3.25% 3.55% 3.77% 3.77% 3.75% 3.72% 3.70% 3.76% 3.35% 3.46% 2.87% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50%
Fed Funds Target (Upper Range) GAAP NIM
Margin Contracted as Balance Sheet Repositioned for Potential Impacts of COVID-19
COF reductions partially offset declining loan yields, increasing liquidity and purchase accounting impacts
0.00% 0.50% 1.00% 1.50% 2.00% 2.50% $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 Average quarterly yield Average balances ($ in millions)
Quarterly Avg. FFS and IB Cash
Avg FFS and IB Cash Yield on FFS and IB Cash
Annualized Net Interest Income Impact of Loan Floors ($mm) At 6.30.20 (Libor ~ 0.16%) At 3.31.20 (Libor ~ 0.99%)
$1.3B Balance Sheet Hedge unwind (~$2.5mm/qtr – 4Q21) $9.9 $10.2 $1.5B Balance Sheet Hedge still in effect through 12/24 $18.2 $4.6 Client loan floors in note documents $17.7 $10.5
(1): Funding available through PPPLF program not considered
$4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000
Actual/Anticipated Discount Accretion Through Dec 2020 (in thousands)
$62 mm $40 mm $23 mm
**: Excluding gains and losses on sales of investment securities. For a reconciliation of these Non-GAAP financial measures to the comparable GAAP measures, see slides 66-67. ^: Excluding the impact of PPP loans on average assets
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PNFP Grew Fees on a Linked-Quarter Basis
Mortgage and BHG provided substantial growth
2Q20 1Q20 2Q19
Year-over-Year Change Rate
Service charges $6,910 $9,032 $8,940
(22.7%)
Investment services 5,971 9,239 5,868
1.8%
Insurance commissions 2,231 3,240 2,147
3.9%
Gain on mortgage loans sold, net 19,619 8,583 6,011
226.4%
Investment gains and losses, net (128) 463 (4,466)
97.1%
Trust fees 3,958 4,170 3,461
14.4%
Income from equity method investment 17,208 15,592 32,261
(46.7%)
Other: Interchange and other consumer fees 8,323 9,969 9,088
(8.4%)
Bank-owned life insurance 4,726 4,652 4,201
12.5%
Loan swap fees 614 2,187 799
(23.2%)
SBA loans sales 941 1,341 1,171
(19.6%)
Gains (losses) on other equity investments (278) (174) 832
(133.4%)
Other 2,859 2,083 369
674.8%
Total noninterest income $72,954 $70,377 $70,682
3.2%
Noninterest income/Average Assets 0.89% 1.00% 1.09%
(18.3%)
Noninterest income** $73,082 $69,914 $75,148
(2.7%)
Noninterest Income**/Total Average Assets 0.90% 1.00% 1.19%
(24.4%)
Noninterest Income**/Total Average Assets^ 0.95% 1.00% 1.19%
(20.2%)
a linked-quarter annualized growth rate of greater than 41%.
due to favorable interest rate environment during the quarter, significant growth in revenue producers and strong housing markets in which we operate translating to substantial increase in gains on mortgage loans sold year-over-year.
year-over-year.
settlement of insurance claim for $935,000.
*: Excluding the impact of ORE expense, FHLB restructuring charges and branch rationalization charges **: Excluding the impact of ORE expense, securities gains and losses, net, FHLB restructuring charges and branch rationalization charges. For a reconciliation of these Non-GAAP financial measures to the comparable GAAP measures, see slide 66-67.
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2Q20 1Q20 2Q19
Year-over-Year Growth % Salaries and employee benefits: Salaries $54,645 $52,176 $44,625 22.5%
Commissions 3,611 3,983 3,224 12.0% Cash and equity incentives 4,824 10,281 16,159 (70.1%) Employee benefits and other 10,807 14,040 11,612 (6.9%) Total salaries and benefits $73,887 $80,480 $75,620 (2.3%) Equipment and occupancy 22,026 20,978 23,844 (7.6%) Other real estate owned, net 2,888 2,415 2,523 14.5% Marketing and other business development 2,142 3,251 3,282 (34.7%) Postage and supplies 2,070 1,990 2,079 (0.4%) Amortization of intangibles 2,479 2,520 2,271 9.2% Other noninterest expense: Deposit related expense 5,677 5,238 4,873 16.5% Lending related expense 10,476 12,068 5,397 94.1% Wealth management related expense 499 558 610 (18.2%) Other noninterest expense 9,461 7,851 7,187 31.6% Total other noninterest expense $26,113 $25,715 $18,067 44.5% Total noninterest expense $131,605 $137,349 $127,686 3.1% Efficiency ratio 48.1% 52.0% 49.2% (2.2%) Expense/Total Average Assets 1.61% 1.96% 1.98% (18.7%) Noninterest expense * $125,847 $134,934 $121,974 3.2% Efficiency ratio ** 46.0% 51.2% 46.0%
1.54% 1.92% 1.89% (18.5%) Headcount (FTE) 2,577.5 2,562.0 2,361.0 9.2%
Expenses Shrank During the Quarter
Growth in expenses should be in the low to mid-single digit range for the year
Up 216 FTE’s in 2Q20 compared to 2Q19. Headcount up 15.5 FTE’s at June 30, 2020 from Mar. 31, 2020. 2020 headcount plan includes support for Atlanta buildout but otherwise headcount additions continued to be limited to critical revenue and support unit hires.
25% of target payout.
quarter and $9.7 mm YTD.
2Q19 due primarily to FHLB prepayment penalties.
Provision Expense was Outsized as PNFP Built Reserves
Unemployment and GDP forecast worsened slightly quarter over quarter
(1) Calculation based on end of period loan balance (2) Net charge-off percentage calculation is annualized and in relation to avg. quarterly loan balances
$’s in 000’s ALL % of Loans Off-Balance Sheet Total ACL December 31, 2019 $94,777 0.48% (1) $2,364 $97,141 Day One CECL impact $38,103 0.19% (1) $8,774 $46,877 Beginning – January 1, 2020 $132,880 0.67% (1) $11,138 $144,018 Net Charge offs ($10,155) 0.20% (2) ($10,155) 1Q Provision $99,740 $5,156 $104,896 At March 31, 2020 $222,465 1.09% (1) $16,294 $238,759 Net Charge offs ($5,385) 0.10% (2) ($5,385) 2Q Provision $68,292 $4,500 $72,792 At June 30, 2020 $285,372 1.27% (1) $20,794 $306,166 At June 30, 2020 Excluding PPP Loans 1.41% (1)
Forecasted economic metrics(1)
Base Case Outlook at: 2Q20 4Q20 2Q21 4Q21
US Unemployment Rates
1Q20 8.87% 12.71% 10.96% 8.55% 2Q20 13.40% 10.25% 7.76% 6.81%
US Real GDP Rate Change
1Q20 (9.3%) (9.5%) (3.9%) (1.3%) 2Q20 (13.8%) (9.2%) (4.8%) (2.3%)
(1) Weighted metrics used in PNFP CECL assessment. Unemployment rates are quarterly averages. US Real GDP rates are net change from 4Q19
PNFP will Continue to Focus on Soundness More than Growth in 3Q20
The length and depth of the pandemic are unknown, but we remain confident in our model
3Q20 Outlook (in relation to 2Q20) Notes Full Year 2020 Average Loan Growth Low to mid-single digit growth (annualized) Anticipate meaningful PPP payoff/forgiveness before y/e with resulting PPP fee recognition Full Year Guidance Withheld at this time Average Deposit Growth Low to mid-single digit growth (annualized) Should experience some reduction in wholesale deposit balances in third
during 2H20. Net interest income Up GAAP margin increase likely with recognition of PPP fee income beginning to ramp up in 3Q20 Fee income Down Believe BHG performance will be somewhat consistent with 2Q20. Mortgage revenues likely to be down after record 2Q20 and based on volumes and rate volatility. Expenses Flat Expenses should be relatively stable with 2Q20. No anticipated meaningful change in expense base contemplated at this time. Have throttled back hiring plans meaningfully for 2020. Net Charge offs Withheld Pending more information regarding pandemic’s depth and subsequent recovery prior to offering any prospective outlook Return on Average Assets Return on Tangible Common Equity Tangible Common Equity Longer term
8.75% to 9.75% Anticipate TCE to be within lower end of our longer-term operating range.
BHG’s differentiated model has proven very resilient thus far with continued strong
gain on sale model provided meaningful pre-provision net revenue to BHG and to
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differentiating themselves from other models as both 1Q20 and 2Q20 loan
to be extremely reliable
balance sheet which should help support its securitization strategy long term
in the history of BHG, business flows remain strong into third quarter
Source: BHG Internal Data
$69M $68M $77M $81M $101M $121M $132M $129M $143M $125M $59M $60M $79M $67M $68M $109M $109M $84M $127M $193M $149M $161M $147M $176M $251M $262M $304M $409M $426M $444M 10.50% 12.13% 13.17% 13.55% 13.48% 14.02% 14.33% 15.42% 15.45% 13.84% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% $0M $100M $200M $300M $400M $500M $600M Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Monthly Average Origination Monthly Average Placements Balance sheet WA Portfolio Rate
BHG continues to originate and sell loans with limited impact by COVID-19
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June 30, 2020.
within first 36 months of origination
includes 18 months of history. Steady improvement in credit over past 7-8 years.
BHG Credit Quality Continues to Impress
Sophisticated credit scoring models produce impressive results
Historical FICO Scores
Source: BHG Internal Data
Vintage analysis demonstrates continuous improvement in portfolio performance
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 <650 650-699 700-749 750-799 >800
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Only 14.8% of BHG’s loans have been granted deferrals and ongoing requests have essentially stopped
portfolio thru June 30th – dentists and optometrists are the most common requesters.
Source: BHG Internal Data as of June 30, 2020
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increased to 7.25% of total loans
at this time while maintaining its historically strong profitability
BHG Credit Quality Continues to Impress
Sophisticated credit scoring models produce impressive results
Historical Charge Offs and Reserves
($s in millions) Source: BHG Internal Data
BHG’s Differentiated Model Continues to Outperform
BHG has built reserves beyond those in the Great Recession
4.04% 3.31% 3.28% 2.40% 3.66% 4.55% 4.17% 3.64% 4.56% 4.20% 3.79% 3.73% 3.22% 3.74% 4.56% 4.71% 4.62% 7.25%
$- $400 $800 $1,200 $1,600 $2,000 $2,400 $2,800 $3,200 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 2012 2013 2014 2015 2016 2017 2018 2019 1H20 Total Ending Balance at outside banks only ($millions) Loss as a % of outstanding Recourse Obligation as a % of Outstanding
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BHG’s business model continues to perform well during pandemic
$77,953 $121,194 $182,461 $0 $50,000 $100,000 $150,000 $200,000 2017 2018 2019 Forecast 2020
Thousands
BHG Net Earnings
Big Year at BHG
and execute on its first securitization
million in proceeds
investment grade ratings
as well as provides for diversification
placements signaling its auction network is very liquid in this environment
continue to improve during pandemic
There are likely no borrowers that are unimpacted by COVID-19. It seems apparent that segments like hotels, restaurants, retail and entertainment will be most impacted by the loss of revenue from the national and local attempts to contain its spread. But it appears the CARES Act stimulus has been effective to date as the volume of deferrals shrank meaningfully and portfolio metrics actually improved in 2Q.
Hotels 4.3% Restaurants 3.2% Entertainment 3.2% Retail 11.3%
Segments Disrupted by COVID-19 at June 30, 2020
2Q20 Loan Portfolio Highlights:
exposure
0.55% 0.44% 0.53% 0.55% 0.38%
NPA/ Loans & OREO
19.3% 14.2% 12.6% 13.9% 11.2%
Classified Asset Ratio
0.87% 0.42% 0.44% 0.48% 1.27%
ALL %
The volume of loans with payment deferrals has declined meaningfully
Loan deferrals as of July 17, 2020
Deferred $ Volume at
Deferred $ Volume at
Deferred $ Volume at June 30, 2020 Deferred $ Volume at July 17, 2020 Hotels
$130,129 $680,925 $809,562 $695,564
Retail
167,277 765,830 886,338 450,216
Restaurant
100,829 239,062 260,309 152,157 Entertainment 29,261 117,392 138,680 82,084
All others
352,423 1,478,897 2,121,541 1,270,407
Totals
$779,919 $3,282,106 $4,216,430 $2,650,428
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and/or changes to risk grades
Amounts as of 6.30.20 – Comments as of 7.17.20
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Hotel Portfolio Highlights:
guaranteed) at 6.30.20
ancillary services impacted by social distancing
in June of 2020 of 41%
Hotel Portfolio by Product ('000s) Construction Term Other Totals at June 30, 2020 Total Commitments $ 240,735 $ 831,625 $ 72,928 $ 1,145,287 Balances as of 6.30.20 $ 114,494 $ 795,438 $ 53,312 $ 963,243 Average balances $4,771 $5,405 $ 1,463 $ 2,288 Average LTV at 6.30.20 60% 55% NM 55% Payment deferred 07.17.20 $ 44,833 $ 647,890 $ 2,841 $ 695,564 Loans > $30mm
Loans between $5 - $30mm 10.3% 63.3% 1.3% 74.8% Loans < $5mm 1.6% 15.9% 4.2% 21.8%
Hotel Property Types
Limited Service; 59% Full Service; 23% Extended Stay ; 10% Economy; 5% Other; 3%
Amounts as of 6.30.20 – Comments as of 7.17.20
27
Top 10 Hotel Borrowers
Hotel Flags
10 Largest Hotel Loans Location ('000s) Exposure at 6.30.20 Loan Type LTV at 6.30.20 Flag Hotel Property Type Deferral at 7.17.20 Little Rock, AR $32,894 Term 60% Marriott Full Service Yes Chattanooga, TN 31,161 Construction 67% Marriott Limited Service No Nashville, TN 28,500 Term 65% Marriott Full Service No Atlanta, GA 26,578 Term 46% Marriott Limited Service Yes Alpharetta, GA 25,263 Construction 63% Hilton Full Service No Nashville, TN 25,000 Term 57% Intercontinental Full Service Yes Walland, TN 24,661 Term 67% Independent Other No Blacksburg, VA 18,602 Term 72% Other Limited Service Yes Duncan, SC 18,497 Term 79% Hilton Full Service Yes Chattanooga, TN 17,805 Term 71% Marriott Full Service Yes $246,053 21.5% of hotel loans
PNFP Hotel Property Type Descriptions are as follows: Economy – The economy sector often is used to categorize the smaller, older, low-rise buildings. Characteristics include limited to no service and some may even have exterior room access. An economy hotel is for the budget minded traveler and examples of flags include; Motel 6, Americas Best Value Inn, La Quinta, Comfort Inn, Baymont Inn, Red Roof Inn, Super 8, Fairfield Inn, or perhaps an independent roadside property. Limited Service – This sector is also known as select service and may offer limited food & beverage options. These properties often include amenities such as a business center, fitness room, and pool, and are represented by brands like Hilton Garden Inn, Tru by Hilton, Courtyard by Marriott and Hyatt Place. Extended Stay - Extended Stay hotels include provisions for cooking within individual rooms or suites, and the average stay is often a week or more. Full Service - Full service hotels are generally mid-price, upscale or luxury hotels with a restaurant, lounge facilities, and meeting space as well as minimum service levels often including bell service and room service. Other – Property types not included in the above type descriptions including resort/conference center hotels, Airbnb and bed and breakfast hotel types.
Marriott; 32.33% Hilton; 23.90% Hyatt; 8.27% InterContinental; 8.10% Independent; 4.47% Other; 22.93%
Amounts as of 6.30.20 – Comments as of 7.17.20
28
Restaurant Portfolio Highlights:
franchise restaurants
Restaurant Portfolio ('000) CRE C&I Construction & Other Total 6/30/2020 Total Commitments $ 371,202 $378,106 $31,210 $ 780,518 Balances as of 6.30.20 $ 347,953 $350,474 21,136 $ 719,563 Average balances $1,762 $198 $924 $322 Payment deferred at 7.17.20 $ 123,097 $ 23,844 $5,216 $ 152,157 Average LTV at 6.30.20 56% NM 65% 57% Loans > $5mm 9.6% 8.7%
Loans between $500k-$5mm 33.3% 16.4% 2.0% 51.7% Loans < $500k 5.9% 23.2% 0.8% 30.0% C&I; 49% CRE - Non-owner Occupied; 20% CRE - Owner Occupied; 28% Construction & Other; 3%
Outstanding Balance by Product Type
Amounts as of 6.30.20 – Comments as of 7.17.20
29
Location Exposure at 6.30.20 LTV at 6.30.20 Franchise Name Deferral at 7.17.20 Nashville, TN $7,625 47% Local/Independent No Clemmons, NC 4,696 58% Bojangles No Statesville, NC 4,203 68% Cici’s Pizza No Columbia, SC 4,013 73% Local/ Independent No Nashville, TN 3,858 53% Local/ Independent No Greenville, SC; Huntersville, NC 3,722 60% Bojangles No Johns Island, SC; Charleston, SC 3,483 64% Bojangles No Graham, NC; Macon, GA 3,322 61% Bojangles No Raleigh, NC 3,114 67% Local/Independent No Erwin, TN 2,958 56% Bojangles No $40,994 5.3% of Restaurant portfolio
Top 10 Non Owner-Occupied CRE Restaurant Borrowers
Location Exposure at 6.30.20 LTV at 6.30.20 Food Service Type Deferral at 7.17.20 Nashville, TN $40,722 37% Fine Dining Yes Lebanon, TN 35,000
Stock of Subs
Casual Dining No Morristown, TN 23,065 FF&E Quick Service No Dallas, TX 15,215 44% Fine Dining Yes Nashville, TN 14,001 78% Quick Service No Columbia, TN 10,388 71% Quick Service No $138,391 17.7% of Restaurant portfolio
C&I and Owner-Occupied CRE Restaurant Borrowers with Exposure Greater than $10mm
PNFP Restaurant Property Type Descriptions are as follows: Casual Dining – Target market could be the traveling public with in-store dining and wait staff. Limited bar service. Fine Dining – Target market are those customers looking for a complete dining experience. Full bar and wine service. Quick Service – Most likely a drive through facility with counter ordering. No wait staff and/or very limited alcoholic beverage service. CRE Loans – PNFP has provided funding to developer or restaurant owner who leases facility to their restaurant entity which could be an independent operator or a franchise. Other – Other properties include bars, caterers, etc.
Casual Dining, 31.4% CRE loans to developers leasing to restaurants, 26.8% Quick Service, 24.4% Other, 9.9% Fine Dining, 6.1% Bars/Drinking Establishments, 1.4%
Outstanding by Restaurant Type
Note: Chart excludes PPP loans.
Amounts as of 6.30.20 – Comments as of 7.17.20
30
Retail Highlights
Retail Portfolio by Product ('000) CRE – Non-Owner Occupied CRE – Owner Occupied C&I Construction & Other Total at 6/30/20 Total Commitments $ 1,245,911 $ 445,545 $ 1,054,867 $ 311,928 $3,058,250 Balances as of 6.30.20 $ 1,211,699 $ 431,025 $ 716,834 $ 183,820 $ 2,543,378 Average balances as of 6.30.20 $ 1,721 $ 590 $ 281 $ 1,422 $ 604 Payment deferred at 7.17.20 $ 340,534 $ 54,277 $ 23,237 $ 32,166 $ 450,214 Loans > $15mm 6.5% 1.0% 3.8%
Loans between $2mm-$15mm 27.2% 5.4% 12.2% 3.9% 48.7% Loans < $2mm 14.0% 10.5% 12.2% 3.4% 40.1%
Non-owner occupied CRE; 48% C&I; 28% Owner occupied CRE; 17% Construction & Other; 7%
Outstanding Balance by Product Type
Non-Anchored Multi Tenant Shopping Center; 36% Single Tenant; 23% Grocery Anchored Shopping Center; 16% Other Retail Anchored Shopping Center; 10% Other; 8% Retail Power Center or Lifestyle Center; 7% Regional Mall; 0% 31
CRE – Nonowner Occupied by Tenant Types
10 Largest Retail Relationships Exposure at 6.30.20 Loan Type LTV at 6.30.20 Tenant Type Deferral at 7.17.20 Delray Beach, FL $28,000 Term 69% Grocery Anchored Shopping Center No New Bern, NC 26,392 Term 70% Retail Power Center or Lifestyle Center Yes Multiple 25,000 Construction 80% Grocery Anchored Shopping Center No Greensboro, NC 24,552 Term 70% Single Tenant Yes Multiple 22,314 Term 60% Single Tenant No Oxford, MS 22,035 Term 90% Other Retail Anchored Shopping Center No Olar, SC 21,846 Term 58% Retail Power Center or Lifestyle Center No Nashville, TN 19,421 Term 43% Non-Anchored Multi-Tenant Shopping Center No Troy, AL 19,115 Construction 74% Other Retail Anchored Shopping Center No Fort Mill, SC 16,266 Term 55% Non-Anchored Multi-Tenant Shopping Center Yes $224,941 7.4% of Retail Portfolio
Top 10 Retail Borrowers
Amounts as of 6.30.20 – Comments as of 7.17.20
Tenant Type Descriptions are as follows: Grocery Anchored Shopping Center is otherwise known as the “Neighborhood Center”, this is a convenience oriented center and usually services a 3-mile radius. The grocery anchored encompasses 30-50% of the GLA, and the typical number of tenants range from 5-20 stores. Other Retail Anchored Shopping Center this is a larger center that services the local area, however offers a wider range of apparel, merchandise, more soft goods and convenience-service oriented stores than neighbor centers. Several tenants maybe considered anchors and the typical number of stores range from 15-40. Non-Anchored, Multi-Tenant Shopping Center also considered a convenience center, is among the smallest of centers, whose tenants provide a narrow mix of goods and personal services to a very limited trade area. Regional Mall consists of general merchandise or fashion-oriented offerings. Typically, enclosed with inward-facing stores and parking surrounds the outside perimeter. Retail Power Center or Lifestyle Center – A power center is comprised of category-dominant anchors over 60% of the GLA. There are usually 3-5+ anchor tenants, and services a wider trade area. A Lifestyle center is an upscale dining, shopping, and entertainment venue in an outdoor setting. Single Tenant property is fully occupied by a single user and often feature a NNN lease structure.
Amounts as of 6.30.20 – Comments as of 7.17.20
32
Entertainment Highlights:
towards music publishing and royalty catalogs
Entertainment Portfolio by Product ('000) CRE C&I Other Total at 6.30.20 Total Commitments $ 198,803 $ 710,864 $ 12,781 $ 922,448 Balances as of 6.30.20 $ 194,562 $ 514,396 $ 8,850 $ 717,809 Average balances as of 6.30.20 $ 4,108 $ 398 $ 937 $ 494 Payment deferred at 7.17.20 $ 69,316 $ 11,452 $ 1,316 $82,084 Loans > $20mm 7.0% 8.2%
Loans between $10mm-$20mm 5.2% 9.4%
Loans between $5mm-$10mm 14.9% 21.2% 1.2% 37.3% Loans < $5mm
10 Largest Entertainment Relationships ('000) Exposure at 6.30.20 Loan Type Entertainment Type Deferral at 7.17.20 NEEDHAM HEIGHTS, MA $47,014 C&I Recording Industry No NEW YORK, NY 39,244 C&I Recording Industry No NEW YORK, NY 39,185 C&I Recording Industry No MEMPHIS, TN 35,623 CRE Tourist Attraction Yes ONTARIO, CAN 34,568 C&I Recording Industry No BEVERLY HILLS, CA 34,110 C&I Recording Industry No NEW YORK, NY 30,000 C&I Recording Industry No LONDON, UK 25,000 C&I Recording Industry No BEVERLY HILLS, CA 25,000 C&I Recording Industry No SANTA MONICA, CA 25,000 C&I Recording Industry No $334,744 36.3% of Entertainment Portfolio
Recording Industry; 54% Tourist Attractions, Athletics, and Other Recreation; 33% Performers & Spectator Sports; 10% Motion Picture Industry; 3%
Entertainment by Type
All the impacts of the COVID-19 pandemic are unknown as yet. Duration and severity are likely a function of the length of time before a vaccine is readily available and the amount of government stimulus that is injected – both
communities and shareholders. Nevertheless, we believe our long-standing differentiated model for attracting talent and competing based on client intimacy should yield best-in-class growth during the pandemic and, more importantly, better position us for the inevitable share grab that will be available following this period that is already stressing client loyalty for our competitors.
paying the common stock dividend
We have built liquidity and capital during this crisis
Many client relationships will be built or destroyed
21% 31% 32% 65% 67% 79% 26% 31% 31% 19% 16% 12% RM advice Insights and solutions to reduce risks Insights and solutions to optimize working capital Digital channels Willingness to lend Bank values long term relationship
Most Important Qualities During Crisis
5 - Extremely Important 4 - Important
According to Greenwich Associates and based on current research
Pinnacle Financial Partners
is recognized as a
Standout Commercial Bank Amid Crisis
*: 1 of 8 banks in the country that were recognized by Greenwich for responses during the COVID-19 crisis based on client feedback
Source: Greenwich Associates
Greenwich: “Record levels of Expected Bank Switching”
Source: Greenwich Associates
37
SECOND QUARTER 2020
Chart
39
56
57
68
38
($ in millions) Amts. 2Q20 % 2Q20 Amts. 1Q20 % 1Q20 Amts. 2Q19 %s 2Q19 Amts. 2Q18 %s 2Q18 C&I $6,293.7 27.9% $6,752.3 33.1% $5,795.1 30.8% $4,821.3 28.3% C&I – Paycheck Protection Program 2,222.6 9.9%
2,708.3 12.0% 2,650.2 13.0% 2,624.2 13.9% 2,504.9 14.7% Total C&I & O/O CRE $11,224.6 49.8% $9,402.5 46.1% $8,419.3 44.7% $7,326.2 43.0% CRE – Investment 4,822.5 21.4% 4,520.2 22.2% 4,252.1 22.6% 3,822.2 22.4% CRE – Multifamily and other 561.5 2.5% 550.3 2.7% 709.1 3.8% 697.6 4.1% C&D and Land 2,574.5 11.5% 2,521.0 12.3% 2,118.0 11.3% 2,133.6 12.5% Total CRE & Construction $7,958.5 35.4% $7,591.5 37.2% $7,079.2 37.6% $6,653.4 39.0% Consumer RE 3,042.6 13.5% 3,106.5 15.2% 2,949.8 15.8% 2,699.4 15.9% Consumer and other 294.5 1.3% 296.4 1.5% 366.0 1.9% 363.9 2.1% Total Other $3,337.1 14.8% $3,402.9 16.7% $3,315.8 17.7% $3,063.3 18.0% Total loans $22,520.2 100.0% $20,396.9 100.0% $18,814.3 100.0% $17,042.9 100.0%
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($ in millions) TOTAL PINNACLE TENNESSEE LOANS CAROLINAS/ VA LOANS ATLANTA OTHER UNIT LOANS* Amts. 2Q20 Amts. 2Q19 Amts. 2Q20 Amts. 2Q19 Amts. 2Q20 Amts. 2Q19 Amts. 2Q20 Amts. 2Q19 Amts. 2Q20 Amts. 2Q19 C&I $6,293.7 $5,795.1 $4,594.5 $4,407.8 $895.5 $881.6 $19.1
$505.7 C&I – Paycheck Protection Program 2,222.6
2,708.3 2,624.2 1,585.0 1,517.8 950.8 988.4 7.9
118.0 Total C&I & O/O CRE $11,224.6 $8,419.3 $6,179.5 $5,925.6 $1,846.3 $1,870.0 $27.0
$623.7 CRE – Investment 4,822.5 4,252.1 2,108.3 1,752.0 2,648.3 2,448.9 14.5
51.2 CRE – Multifamily and other 561.5 709.1 474.1 496.3 86.0 191.8
21.0 C&D and Land 2,574.5 2,118.0 1,374.6 1,222.1 1,178.6 865.0 0.5
30.9 Total CRE & Construction $7,958.5 $7,079.2 $3,957.0 $3,470.4 $3,912.9 $3,505.7 $15.0
$103.1 Consumer RE 3,042.6 2,949.8 1,742.2 1,414.1 1,186.9 1,199.0 1.0
336.7 Consumer and other 294.5 366.0 174.6 180.5 42.9 89.2
96.3 Total Other $3,337.1 $3,315.8 $1,916.8 $1,594.6 $1,229.8 $1,288.2 $1.0
$433.0 Total Loans $22,520.2 $18,814.3 $12,053.3 $10,990.6 $6,989.0 $6,663.9 $43.0
$1,159.8 Average Ticket Size (in ‘000s) $272.6 $269.8 $405.2 $389.3 $213.7 $201.4 $1,076.1
$138.1 40
Note: Percentages noted in red text represent year-over-year growth rates. *: Represents mortgage, associate banking, automobile finance and various other business lines.
($ in millions)
TOTAL PINNACLE C&I & O/O CRE CRE & CONSTRUCTION OTHER LOANS*
Amts. 2Q20 Amts. 2Q19 Amts. 2Q20 Amts. 2Q19 Amts. 2Q20 Amts. 2Q19 Amts. 2Q20 Amts. 2Q19
Nashville
$6,681.3 $6,130.0 $2,991.1 $3,062.6 $2,603.2 $2,139.4 $1,087.0 $928.0
Knoxville
1,776.9 1,641.6 1,066.5 996.2 $491.3 473.3 $219.1 172.1
Music and Entertainment
559.6 374.6 431.8 258.7 $20.8 18.5 $107.0 97.4
Chattanooga
1,430.2 1,329.4 836.6 786.8 $321.9 312.0 $271.7 230.6
Memphis
1,605.3 1,515.1 853.5 821.2 $519.8 527.3 $232.0 166.6
Total Tennessee
$12,053.3 $10,990.7 $6,179.5 $5,925.5 $3,957.0 $3,470.5 $1,916.8 $1,594.7
Greensboro/Highpoint
1,712.8 1,695.9 583.3 621.2 $884.9 787.7 $244.6 287.0
Charlotte
2,093.3 1,913.1 508.7 484.5 $1,192.7 1,039.2 $391.9 389.4
Raleigh
1,214.4 1,083.8 198.1 200.7 $867.1 740.9 $149.2 142.2
Charleston
822.6 891.8 160.5 173.4 $392.5 433.8 $269.6 284.6
Greenville
427.0 464.3 116.3 149.2 $261.3 266.9 $49.4 48.2
Roanoke
601.1 503.8 177.6 142.1 $299.1 225.1 $124.4 136.6
SBA
117.8 111.2 101.8 99.0 $15.3 12.0 $0.7 0.2
Total Carolina/VA
$6,989.0 $6,663.9 $1,846.3 $1,870.1 $3,912.9 $3,505.6 $1,229.8 $1,288.2
Atlanta
43.0
2,222.6
1,212.3 1,159.7 949.2 $623.7 $73.6 103.1 $189.5 432.9
Total
$22,520.2 $18,814.3 $11,224.6 $8,419.3 $7,958.5 $7,079.2 $3,337.1 $3,315.8 41
Note: Percentages noted in red text represent year-over-year growth rates. *: Represents mortgage, associate banking, automobile finance and various other business lines.
($ in millions) Amts. 2Q20 % 2Q20 Amts. 1Q20 % 1Q20 Amts. 2Q19 % 2Q19 Amts. 2Q18 % 2Q18 Residential – Spec
$321.7 1.4% $347.7 1.7% $350.4 1.9% $294.9 1.7%
Residential – Custom
165.9 0.8% 145.2 0.7% 129.5 0.7% 137.6 0.8%
Residential – Condo
1.2 0.0% 1.5 0.0% 0.7 0.0% 0.6 0.0%
Commercial Construct.
1,623.5 7.2% 1,581.9 7.8% 1,254.8 6.7% 1,219.0 7.2%
Land Dev– Residential
272.9 1.2% 269.8 1.3% 211.7 1.1% 161.2 0.9%
Land Dev – Commercial
115.6 0.5% 108.2 0.6% 113.2 0.6% 201.1 1.2%
Land Dev – Mixed Use
13.2 0.1% 6.6 0.0% 4.5 0.0% 32.4 0.2%
Land – Unimproved
60.5 0.3% 60.1 0.3% 53.2 0.3% 86.8 0.5%
Total Construction and Land Dev.
$2,574.5 11.5% $2,521.0 12.4% $2,118.0 11.3% $2,133.6 12.5%
42
($ in millions) TOTAL PINNACLE TENNESSEE LOANS CAROLINAS/VA LOANS ATLANTA LOANS OTHER UNIT LOANS Amts. 2Q20 Amts. 2Q19 Amts. 2Q20 Amts. 2Q19 Amts. 2Q20 Amts. 2Q19 Amts. 2Q20 Amts. 2Q19 Amts. 2Q20 Amts. 2Q19 Residential – Spec
$321.7 $350.4 $229.8 $247.4 $91.5 $101.1 $0.0 $0.0 $0.4 $1.9
Residential – Custom
165.9 129.5 101.7 79.7 63.6 47.9 0.0 $0.0 0.6 1.9
Residential – Condo
1.2 0.7 1.2 0.7 0.0
$0.0 0.0
1,623.5 1,254.8 757.0 652.7 863.9 595.4 0.0 $0.0 2.6 6.7
Land Dev– Residential
272.9 211.7 164.1 155.5 93.1 44.4 0.5 $0.0 15.2 11.8
Land Dev – Commercial
115.6 113.2 72.4 46.7 42.6 61.2 0.0 $0.0 0.6 5.3
Land Dev – Mixed Use
13.2 4.5 3.2 3.9 10.0 0.6 0.0 $0.0 0.0
60.5 53.2 45.2 35.6 13.8 14.3 0.0 $0.0 1.5 3.3
Total Construction and Land Dev.
$2,574.5 $2,118.0 $1,374.6 $1,222.2 $1,178.5 $864.9 $0.5 $0.0 $20.9 $30.9
Average Ticket Size (in ‘000s)
$627.0 $516.8 $632.3 $577.0 $632.6 $456.5 $545.7 $0.0 $305.4 $363.2 43
($ in millions)
Total NOO and Multifamily Total Construction Total NOO and Construction Amts. 2Q20 Amts. 1Q20 Amts. 2Q19 Amts. 2Q20 Amts. 1Q20 Amts. 2Q19 Amts. 2Q20 Amts. 1Q20 Amts. 2Q19 Multifamily $590.4 $550.3 $709.1 $548.4 $491.8 $319.2 $1,138.8 $1,042.1 $1,028.3 Hospitality 730.3 742.6 783.0 113.0 87.4 117.3 843.3 830.0 900.3 Retail 1,325.8 1,328.6 1,284.1 180.3 173.9 115.4 1,506.1 1,502.5 1,399.5 Office 806.5 758.5 724.1 166.8 150.1 88.2 973.3 908.6 812.3 Warehouse 922.7 816.4 657.8 287.9 333.0 227.8 1,210.6 1,149.4 885.6 Medical 482.5 456.0 383.9 122.9 170.8 132.6 605.4 626.8 516.5 Other 525.8 418.1 419.2 1,155.2 1,114.0 1,117.5 1,681.0 1,532.1 1,536.7 Total $5,384.0 $5,070.5 $4,961.2 $2,574.5 $2,521.0 $2,118.0 $7,958.5 $7,591.5 $7,079.2 Average Ticket Size (in ‘000s) $1,907.7 $1,792.3 $1,752.5 $627.0 $614.0 $516.8 $1,149.4 $1,094.7 $1,022.7
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45
($'s in millions)
3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 6/30/2020 Linked Qtr. Change Net Active Balance $ 3,489.80 $ 3,591.00 $ 3,814.50 $ 3,870.10 $ 3,929.10 $ 4,090.80 $ 161.70 Net Available Credit 2,578.30 2,736.80 2,894.50 3,002.60 3,018.50 3,029.60 11.10 Total Exposure 6,068.00 6,327.80 6,708.90 6,872.90 6,947.60 7,120.30 172.70 % Funded 57.5% 56.7% 56.9% 56.3% 56.6% 57.5% 0.9% Net Active Balance $ 3,565.70 $ 3,832.20 $ 3,805.10 $ 3,911.20 $ 4,214.00 $ 3,702.60 $ (511.40) Net Available Credit 3,651.50 3,671.00 3,784.90 3,694.00 3,693.70 4,312.10 618.40 Total Exposure 7,217.20 7,503.20 7,590.20 7,605.10 7,907.60 8,014.70 107.10 % Funded 49.4% 51.1% 50.1% 51.4% 53.3% 46.2%
Net Active Balance $ 1,292.80 $ 1,291.20 $ 1,354.10 $ 1,340.00 $ 1,364.20 $ 1,333.30 $ (30.90) Net Available Credit 1,358.70 1,373.00 1,412.00 1,445.30 1,477.40 1,534.10 56.70 Total Exposure 2,651.50 2,664.20 2,766.10 2,785.20 2,841.40 2,867.60 26.20 % Funded 48.8% 48.5% 49.0% 48.1% 48.0% 46.5%
Net Active Balance $ 8,348.30 $ 8,714.40 $ 8,973.70 $ 9,121.30 $ 9,507.30 $ 9,126.70 $ (380.60) Net Available Credit 7,588.50 7,780.80 8,091.40 8,141.90 8,189.60 8,875.80 686.20 Total Exposure 15,936.70 16,495.20 17,065.20 17,263.20 17,696.60 18,002.60 306.00 % Funded 52.4% 52.8% 52.6% 52.8% 53.7% 50.7%
CRE – Investment & Construction C&I and O/O CRE Consumer Cards and HELOC Totals
46
0.00% 0.10% 0.20% 0.30% 0.40% 0.50% CRE Construction C&I Net commercial charge
Net Commercial Loan Charge Offs by Loan Type
2015 2016 2017 2018 2019 YTD 2020 Annualized
0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% Consumer RE Consumer and other Net consumer charge offs
Net Consumer Loan Charge Offs by Loan Type
2015 2016 2017 2018 2019 YTD 2020 Annualized
($ in thousands) Description 2Q20 1Q20 4Q19 3Q19 2Q19 1Q19
Loans secured by real estate: Construction, land development, and other loans: 1-4 family residential construction loans $580,193 $582,106 $578,443 $575,975 $564,339 $575,753 Other construction loans and all land development and other land loans 1,994,301 1,938,831 1,852,040 1,677,328 1,553,630 1,521,817 Loans included in the 100% test $2,574,494 $2,520,937 $2,430,483 $2,253,303 $2,117,969 $2,097,570 Secured by multifamily (5 or more) residential properties $574,328 $551,963 $631,616 $686,385 $726,744 $706,097 Loans secured by other nonfarm nonresidential properties 4,822,537 4,520,234 4,418,658 4,443,687 4,252,098 4,107,953 Financed real estate not secured by real estate 493,494 309,990 317,949 306,738 310,371 136,306 Loans included in the 300% test $8,464,853 $7,903,124 $7,798,706 $7,690,113 $7,407,182 $7,047,926
2,Total Risk-Based Capital $3,078,671 $2,993,005 $2,906,853 $2,818,988 $2,563,617 $2,495,127 % of Total Risk-Based Capital 100% Test – Construction and Land Development 84% 84% 84% 80% 83% 84% 300% Test – Construction and Land Development + NOOCRE + Multifamily 275% 264% 268% 273% 289% 283%
47
($ in millions) TOTAL DEPOSITS CORE DEPOSITS NONCORE DEPOSITS TOTAL PINNACLE TRANSACTION AND MMDA CDs PUBLIC FUNDS and OTHER DEPOSITS 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 Nashville $9,319.6 $7,203.4 $8,515.1 $6,381.4 $529.2 $537.4 $275.3 $284.6 Knoxville 2,134.9 1,670.6 1,970.6 1,550.0 115.4 73.1 48.9 47.5 Music and Entertainment 302.5 282.7 294.1 279.1 1.9 1.6 6.5 2.0 Memphis 1,225.5 866.4 1,013.9 667.6 147.1 147.0 64.5 51.8 Chattanooga 1,455.1 992.9 1,338.3 884.3 60.2 54.7 56.6 53.9 Total Tennessee $14,437.6 $11,016.0 $13,132.0 $9,762.4 $853.8 $813.8 $451.8 $439.8 Greensboro/Highpoint 2,334.9 1,928.0 1,880.6 1,533.8 287.3 281.5 167.0 112.7 Charlotte 1,489.8 1,172.3 1,214.9 850.9 180.5 204.3 94.4 117.1 Charleston 1,037.2 914.7 858.7 702.8 145.7 176.9 32.8 35.0 Raleigh 746.1 603.5 674.6 527.8 50.8 54.5 20.7 21.2 Roanoke 764.3 586.3 621.0 437.9 119.9 128.3 23.4 20.1 Greenville 367.2 316.8 251.5 197.5 79.2 82.5 36.5 36.8 Total Carolinas / VA $6,739.5 $5,521.6 $5,501.3 $4,250.7 $863.4 $928.0 $374.8 $342.9 Atlanta 29.0
4,315.7 2,911.7 978.9 679.4 33.4 69.4 3,303.4 2,162.9 Total $25,521.8 $19,449.3 $19,641.2 $14,692.5 $1,750.6 $1,811.2 $4,130.0 $2,945.6 48
Note: Percentages noted in red text represent year-over-year growth rates.
Conservative bond portfolio
49 2.3% 2.6% 35.4% 4.3% 3.9% 51.5% Agency/Treasury Corporates MBS Asset Backed CMOs Municipals
Portfolio: June 30, 2020
Total Investments $4.4 billion Net Unrealized Gain $98.8 million
Quarter Duration
2Q20 4.6% 2.6% 1Q20 4.3% 2.8% 4Q19 4.8% 2.9% 3Q19 4.4% 3.0% 2Q19 4.1% 3.2% 1Q19 3.7% 3.4% 4Q18 3.6% 3.2% 3Q18 4.4% 3.1% 2Q18 3.9% 2.9% 1Q18 3.5% 2.9% 4Q17 3.5% 2.7% 3Q17 3.5% 2.6%
50 Note: See slide 68 for peer group utilized in the above analysis. Source: S&P Global
70% 74% 77% 79% 80% 30% 26% 23% 21% 20%
Effective Bond Portfolio Composition End of Period
Fixed Rate Variable Rate
2.59 13.0
10.0 15.0 20.0 25.0 30.0 35.0 40.0
1.00 1.50 2.00 2.50 3.00 3.50 4.00
% of Total Assets Bond Yields
PNFP - Bond Yields Peer Median - Bond Yields PNFP - % of Total Assets Peer Median - % of Total Assets
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Source: Internal records.
$20,397 $20,306 $22,520 $380 $289 $2,214
Period-End to Period-End Loan Growth
$21,333 $25,522 $1,435 $1,700 $1,054
Period-End to Period End Deposit Growth
52
Interest-rate risk mitigation efforts taken over the past 12 months:
swaps
($1.3b and $1.5b)
through income over next two years
provides $18.2mm of annual interest income at 6/30 LIBOR rate of 0.16%
exposure from 30% of investment securities at 6/30/19 to 20% at 6/30/20
refinances within one year as of 6/30/20
environment; moved aggressively to lower deposit rates
2.1% 1.0% 0.3%
0.4%
0.6%
0.5%
0.0% 1.0% 2.0% 3.0% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Net Interest Income % D
Rate Shock Scenarios
Ramp +100 Ramp -100 4.1% 2.2% 1.0%
0.6%
0.6%
0.0%
0.0% 2.0% 4.0% 6.0% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Net Interest Income % D
Rate Ramp Scenarios
Shock +100 Shock -100
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Estimate that both PPP and Liquidity Build negatively impacted 2Q20 NIM by 0.32%
(2) Yields computed on tax-exempt instruments on a tax equivalent basis and included $6.9 million of taxable equivalent income for the three months ended June 30, 2020 compared to $6.9 million for the three months ended June 30, 2019. 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. (1) Average balances of nonperforming loans are included in the above amounts. (3) 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.
Allowance for Credit Losses 12/31/2019 Probable Incurred Losses January 1, 2020 CECL Adoption March 31, 2020 CECL June 30, 2020 CECL
Amount % of Loans Amount % of Loans Amount % of Loans Amount % of Loans Commercial and Industrial $ 36,112 0.57% $ 59,114 0.94% $ 88,032 1.30% $ 100,610 1.60% * Commercial Real Estate 33,369 0.43% 28,894 0.37% 55,748 0.72% 107,229 1.33% Construction and Land Development 12,662 0.52% 9,537 0.39% 38,911 1.54% 41,897 1.63% Consumer Real Estate 8,054 0.26% 29,109 0.95% 32,997 1.06% 29,358 0.96% Consumer and Other 4,580 1.58% 6,226 2.15% 6,776 2.29% 6,278 2.13% Allowance for Credit Losses - Loans & Leases $ 94,777 0.48% $ 132,880 0.67% $ 222,464 1.09% $ 285,372 1.41% * Reserve for unfunded lending commitments 2,364 11,138 16,294 20,794 Allowance for Credit Losses - Total $ 97,141 $ 154,018 $ 238,758 $ 306,166
* Reserve percentages for C&I and total loans at June 30, 2020 exclude PPP loans
length and severity of pandemic better understood
1Q20 4Q19 3Q19 2Q19 1Q19
# of shares repurchased 1,015,039 228,533 199,032 130,888 543,585 Value of shares $50.8m $12.9m $11.1m $7.4m $30.0m
$50.01 $56.54 $55.57 $56.31 $55.25
COVID-19
$19.58 $22.58 $25.28 $30.26 $34.43
Tangible Book Value per Common Share**
B noncumulative, perpetual preferred stock issued during the second quarter
**: excluding goodwill, core deposit and other intangible assets Note: For a reconciliation of these Non-GAAP financial measures to the comparable GAAP measures, see slides 66-67.
(*) > 30 days past due (**) Excludes past due loans rated substandard
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($ in millions) June 30, 2020 AS A % OF TOTAL LOANS
AS A % OF TOTAL LOANS June 30, 2019 AS A % OF TOTAL LOANS
Past Due Loans (*)
Nonaccrual loans $30,505 0.14% $31,285 0.15% $41,282 0.22% Accruing loans 20,706 0.09% 33,780 0.17% 40,199 0.21%
Total past due $51,211 0.23% $65,065 0.32% $81,481 0.43% NPLs and > 90 days
$3,230 0.01% $2,391 0.01% $2,395 0.01% Consumer RE 23,255 0.10% 26,623 0.13% 30,117 0.16% CRE – Owner Occupied 11,806 0.05% 11,324 0.06% 13,011 0.07% CRE – Non-Owner Occupied 10,454 0.05% 9,375 0.05% 10,850 0.06% Total real estate $48,745 0.22% $49,713 0.25% 56,373 0.30% C&I 15,239 0.07% 22,805 0.11% 21,420 0.11% Other 560 0.00% 442 0.00% 1,017 0.01%
Total loans $64,544 0.29% $72,960 0.36% $78,810 0.42% Classified loans and ORE
Substandard commercial loans $288,906 1.28% $293,665 1.44% $283,259 1.51% Doubtful commercial loans
294 0.00% 1 0.00% Other impaired loans 25,694 0.11% 26,926 0.13% 25,273 0.13% 90 days past due and accruing (**) 1,682 0.01% 1,990 0.01% 2,644 0.01% Other real estate 22,080 0.10% 27,182 0.13% 26,657 0.14% Other repossessed assets 25 0.00%
1 0.00%
Total $338,387 1.50% $350,057 1.72% $337,836 1.80%
Pinnacle Bank classified asset ratio 11.2% 12.0% 13.9
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and provides significant P&L benefit as rates fall or remain near zero.
into income over following seven quarters (~$2.5MM quarterly)
Rate Floors – Annual Interest Income Contribution (in millions) Annual Interest Income Contribution (in millions) At 6.30.20 (LIBOR ~0.16%) $1.3B Floor Balance Sheet Hedge unwind ($2.5mm/qtr – 4Q21) $ 9.9 $1.5B Floor Balance Sheet Hedge still in effect 18.2 Client loan floors in note documents 17.7 $ 45.8
*: excluding gains and losses on sales of investment securities and loss on sale of non-prime automobile portfolio. For a reconciliation of these Non-GAAP financial measures to the comparable GAAP measures, see slides 66-67. Note: See slide 68 for peer group utilized in the above analysis. Peer group calculated by aggregating total peer revenues by total peer weighted avg. shares for each quarter. Source: S&P Global
58
$10.20 $10.27 $10.49 $10.73 $11.10 $11.43 $11.74 $12.13 $12.42 $12.92 $13.44 $13.54 $13.87 $14.05 13.0% 7.3% 5.0% 5.3% 8.8% 11.3% 11.9% 13.0% 11.9% 13.0% 14.5% 11.6% 11.6% 8.8% 4.0% 4.5% 3.9% 4.6% 6.4% 6.5% 7.3% 6.2% 4.7% 5.0% 4.3% 5.0% 6.7%
0.0% 3.0% 6.0% 9.0% 12.0% 15.0% $10.00 $11.00 $12.00 $13.00 $14.00 $15.00 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Y/Y Revenue per Share Growth Revenue per Share
LTM Revenue Per Common Share Growth vs. Peers
Series1 PNFP Y/Y Growth Peer Median Y/Y Growth
0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $25,000 $100,000 $175,000 $250,000 $325,000 $400,000 $475,000 $550,000 $625,000
Purchase Money Refinance Gross fees as a % of loans originated
59
60
Strong equity to support business model
Source: BHG Internal Data, unaudited
**: Excludes the impact of ORE expense and income, branch rationalization charges, merger-related charges and FHLB restructuring charges. For a reconciliation of these Non-GAAP financial measures to the comparable GAAP measures, see slide 66-67. ^: 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. Associate retention rate does not include associates at acquired institutions displaced by acquisition.
61 $412.8 $205.0 $419.9 $202.3 $424.9 $201.0 $427.5 $206.2 $415.9 $199.0 $441.0 $216.9 $449.8 $214.8 $404.6 $208.1 $414.3 $215.6 $426.9 $205.4 $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 Annualized REV/ Associate Annualized EXP/ Associate
2Q18 to 2Q20
(increase of $700 per associate)
2Q18 to 2Q20
(increase of $3,100 per associate) 86% 88% 90% 92% 94%
Employee Retention^
Retention % 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Noninterest Expense / Avg Assets GAAP Noninterest Expense / Avg Assets Adjusted**
62
Despite difficult operating environment PPNR grows meaningfully in 2Q20.
$- $0.50 $1.00 $1.50 $2.00 $2.50 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Net PPNR per Share
Note: For a reconciliation of the above Non-GAAP financial measures to the comparable GAAP measures, see slide 66-67.
March 6 - Pinnacle restricts business travel, inventories personal travel, asks associates to report illness March 11 - All associate communication re: full pandemic pay March 18 - Pinnacle offices open as drive-thru only. More than 50% of
March 20 – Loan deferral and relief programs in place
Pinnacle Response Pandemic Macro Events
March
March 11 - WHO declares
March 22 – Various cities and states in
restrictions March 27 – $2 trillion coronavirus economic stimulus bill signed by President Trump, authorizing $349B for Payroll Protection Program (PPP)
April June May July
April 3 – PPP launches nationwide April 5 – All states where PNFP
April 16 – Initial allocation of PPP funds exhausted April 24 – Additional $500B authorized for PPP April 27 – PPP applications accepted for second round of funding May 1 – Governors in PNFP markets are finalizing plans to lift “stay-at- home” orders in order to begin re-
May 7 – 33 million Americans have filed for initial jobless claims since the pandemic began May 17 – Coronavirus deaths in the US surpass 90,000, and total confirmed cases rose to nearly 1.5 million Late May – by this time all states in which we have branches have removed “stay-at-home” orders April 1 – Roll out training for accepting and entering PPP applications April 3 – Pinnacle begins accepting PPP applications from clients; Pinnacle accepted 2,300+ applications for nearly $900MM in funding requests in first day April 16 – when funding is exhausted, Pinnacle has secured estimated $1.8B in PPP funding for 6,000+ businesses April 27 – Pinnacle begins processing applications again May 1 – Terry Turner sends all associate email with video address that serves as the 1Q 2020 All Associate Meeting; increasing focus on asset quality deemed #1 priority May 15 – Pinnacle secured more than $2.4B in PPP funding for 14,000+ small businesses to date; new applications continue to be accepted but are few by this time May 22 – COVID-19 Risk Grading project commences to reassess the risk of entire loan portfolio June 15 – Pinnacle re-opens lobbies of 9
June 22 – Additional 7 offices re-open lobbies to clients June 30 – Pinnacle concludes first round
commercial, small business, and consumer loans deferred or in higher risk industries June 17 – SBA releases revised PPP loan forgiveness application, adding an EZ version for certain borrowers June 30 – Senate agrees to extend PPP application deadline to August 8 July 1 – President Trump signs bill extending PPP application deadline to August 8 July 6 – Treasury releases detailed loan-level data on 4.9 million PPP loans made July 3 – Pinnacle delays further lobby and office re-opening plans amid continued spread of coronavirus in our geographic markets July 8 – Pinnacle reinforces internal message to process PPP loan applications until revised Aug. 8 deadline
phase of reopening, with some reverting from phase three to phase two.
encouraged, schools remain closed, social distancing, gatherings limited to 10 to 50 or less, high-risk groups encouraged to shelter in place, increased testing;
– generally limited to 50% to 75% capacity;
Parks/playgrounds; and
skilled nursing basically off-limits to visitors.
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PNFP Markets Cumulative Cases July 5, 2020 Population Case Rate per 100k July 5, 2020 Atlanta 45,838 6,020,364 761.38 Charlotte 23,315 3,099,563 752.20 Raleigh-Durham-Chapel Hill 14,879 2,035,152 731.10 Triad 10,981 1,617,368 678.94 Charleston 15,025 1,521,218 987.70 Greenville/Spartanburg 10,088 1,240,262 813.38 Chattanooga 4,390 690,136 636.11 Knoxville 1,845 754,419 244.56 Memphis 15,730 1,346,045 1,168.61 Nashville/Murfreesboro 20,472 1,718,451 1,191.31 Roanoke 1,078 313,222 344.16 Totals 163,641 20,356,200 803.89 Other Comparables Chicago 139,417 9,568,401 1,457.06 Los Angeles 124,521 13,214,799 942.28 New York City 492,039 19,216,182 2,560.55
Sources: Departments of Health, USAFacts.org. Case data as of 7/5.
PNFP Markets Cumulative Tests July 5, 2020 Population Tests per 100k July 5, 2020 Georgia 1,119,577 10,617,423 10,544.72 North Carolina 1,036,838 10,488,084 9,885.87 South Carolina 473,543 5,148,714 9,197.31 Tennessee 895,796 6,829,174 13,117.19 Virginia 712,350 8,535,519 8,345.71 Totals 4,238,104 41,618,914 10,183.12 Other Comparables Illinois 1,761,706 12,671,821 13,902.55 California 4,680,138 39,512,223 11,844.79 New York/New Jersey 5,768,443 28,335,751 20,357.47
Sources: Departments of Health. Case data as of 7/5.
PPP Loan Stratification Table as of 6/30/2020
(dollars in thousands)
SBA Fee App Count* Approved Dollars * Average Ticket
1% (> $350k) 135 $481,987 $3,570 3% ($350k to > $2mm) 1,281 $941,408 $735 5% ($2mm and above) 12,752 $867,919 $69 14,168 $2,291,313
*Application count and approved dollars have been reduced for PPP loans returned to the SBA as
PPP loans were to borrowers who previously did not have a loan or deposit account at PNFP previously.
Quarter Estimate of Fee Recognition by Quarter #
2Q20 10% 3Q20 13% 4Q20 37% 1Q21 12% 2Q21 8% 3Q21 7% 4Q21 6% 1Q22 6% 2Q22 1%
# Preliminary estimate of PPP loan fee recognition over life of
income over life of loan until forgiveness when the residual balance of loan fees would be recognized. Estimates do not include interest component.
COVID-19 Impacted Industries Approved Dollars
Hotel $ 42,392 Restaurant 179,220 Retail 187,392 Entertainment 53,099
65
Reconciliation of Non-GAAP Financial Measures
66
Reconciliation of Non-GAAP Financial Measures
67
Institution Name Ticker City, State
Pinnacle Financial Partners PNFP Nashville, TN Associated Banc-Corp ASB Green Bay, WI BancorpSouth, Inc. BXS Tupelo, MS Bank of the Ozarks, Inc. OZRK Little Rock, AR Chemical Financial Corporation CHFC Midland, MI Cullen/Frost Bankers, Inc. CFR San Antonio, TX F.N.B. Corporation FNB Pittsburgh, PA First Horizon National Corporation FHN Memphis, TN Fulton Financial Corporation FULT Lancaster, PA Hancock Holding Company HWC Gulfport, MS IBERIABANK Corporation IBKC Lafayette, LA MB Financial, Inc. MBFI Chicago, IL Old National Bancorp ONB Evansville, IN PacWest Bancorp PACW Beverly Hills, CA Prosperity Bancshares, Inc. PB Houston, TX Sterling Bancorp STL Montebello, NY Synovus Financial Corp. SNV Columbus, GA TCF Financial Corporation TCF Wayzata, MN Trustmark Corporation TRMK Jackson, MS UMB Financial Corporation UMBF Kansas City, MO Umpqua Holdings Corporation UMPQ Portland, OR United Bankshares, Inc. UBSI Charleston, WV Valley National Bancorp VLY Wayne, NJ Western Alliance Bancorporation WAL Phoenix, AZ Wintrust Financial Corporation WTFC Rosemont, IL
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SECOND QUARTER 2020
HAROLD R. CARPENTER, EVP AND CFO TIM HUESTIS, EVP AND CHIEF CREDIT OFFICER