Investor Call THIRD QUARTER 2019 October 16, 2019 Time: 8:30 AM - - PowerPoint PPT Presentation
Investor Call THIRD QUARTER 2019 October 16, 2019 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 Safe Harbor Statements Forward
THIRD QUARTER 2019
HAROLD R. CARPENTER, EVP AND CFO
October 16, 2019
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) deterioration in the financial condition of borrowers of Pinnacle Bank or BHG resulting in significant increases in loan losses and provisions for those losses or, in the case of BHG, substitutions; (ii) 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; (iii) 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; (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) 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; (vii) adverse conditions in the national or local economies including in Pinnacle Financial's markets throughout Tennessee, North Carolina, South Carolina and Virginia, particularly in commercial and residential real estate markets; (viii) 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 lower deposit rates with the speed and at the levels desired in connection with the declining short-term rate environment currently contemplated, or that affect the yield curve; (ix) the results of regulatory examinations; (x) Pinnacle Financial's ability to identify potential candidates for, consummate, and achieve synergies from, potential future acquisitions; (xi) difficulties and delays in integrating acquired businesses or fully realizing costs savings and other benefits from acquisitions; (xii) BHG's ability to profitably grow its business and successfully execute on its business plans; (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 goodwill or the intangible assets; (xv) reduced ability to attract additional financial advisors (or failure of such advisors to cause their clients to switch to Pinnacle Bank), to retain financial advisors (including as a result of the competitive environment for associates) or otherwise to attract customers from other financial institutions; (xvi) the ability of Pinnacle Financial to implement its branch consolidation strategy on the timelines, and at the costs, presently contemplated; (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 Financial'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 Financial 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 if not prohibited from doing so by Pinnacle Financial or Pinnacle Bank; (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) risks associated with the possible shutdown of the United States federal government, including adverse effects on the national or local economies and adverse effects resulting from a shutdown of the U.S. Small Business Administration's SBA loan program; (xxv) the availability of and access to capital; (xxvi) 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; and (xxvii) 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 press release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise.
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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 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 consolidation project, the sale of the remaining portion of Pinnacle Bank's non-prime automobile portfolio, the revaluation of Pinnacle Financial’s deferred tax assets and other matters for the accounting periods
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. The presentation of the non-GAAP financial information is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. Because non-GAAP financial measures presented in this 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 2019 versus certain periods in 2018 and to internally prepared projections.
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3Q19 Summary Results of Key GAAP Measures
4 Total Revenues ROTCE Total Deposits
(millions)
FD EPS Book Value per Share
NPA/ Loans & OREO NCOs
Total Loans (millions) Classified Asset Ratio
$4,421 $6,336 $8,241 $15,260 $17,464 $19,346
Total Loans
(millions) CAGR 34.3%
$62,396 $83,469 $118,327 $216,159 $240,887 $278,008
Total Revenues
CAGR 34.8%
0.78% 0.57% 0.41% 0.51% 0.55% 0.53%
NPA/ Loans & OREO
13.69% 15.31% 16.01% 15.43% 18.44% 18.31%
ROTCE**
$4,261 $4,833 $7,715 $13,609 $16,077 $17,103
Total Core Deposits
(millions)
CAGR 32.0%
$0.52 $0.66 $0.78 $0.90 $1.22 $1.45
FD EPS*
CAGR 22.8%
$14.98 $17.09 $19.69 $23.32 $26.21 $31.60
Tangible Book Value per Share**
CAGR 16.1%
3Q19 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 consolidation adjustment 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 41-43.
0.15% 0.28% 0.35% 0.14% 0.10% 0.10%
NCOs
20.0% 17.1% 14.8% 12.7% 13.7% 13.5%
Classified Asset Ratio
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“Culture eats strategy for lunch” - Peter Drucker
Emphasis on associate engagement yields rapid, reliable growth
Engaged Associates Produce Better Outcomes
3rd Quarter Achievements
65 29 66
Planned Planned-to-date Actual-to-date
Planned Planned-to-date Actual-to-date
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PNFP’s Hiring and Engagement Model has been Well Received in NC, SC, and VA
PNFP engaged BNC associates and substantially exceeded its hiring plan
PNFP Primarily Focuses on Top and Bottom Line Growth
PNFP continues to grow revenue/share at a double-digit pace and faster than peers
Note: See slide 44 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 8
$10.20 $10.27 $10.49 $10.73 $11.10 $11.43 $11.74 $12.13 $12.42 $12.92 $13.44 13.0% 7.3% 5.0% 5.3% 8.8% 11.3% 11.9% 13.0% 11.9% 13.0% 14.5% 3.8% 3.8% 4.1% 3.9% 5.9% 5.2% 6.6% 5.9% 4.7% 5.0%
0.0% 2.5% 5.0% 7.5% 10.0% 12.5% 15.0% $10.00 $10.50 $11.00 $11.50 $12.00 $12.50 $13.00 $13.50 $14.00 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Y/Y Revenue per Share Growth Revenue per Share
LTM Revenue Per Share Growth vs. Peers
PNFP Revenue/Share PNFP Y/Y Growth Peer Y/Y Growth
Loan & Deposit Growth are Keys to Top and Bottom Line Growth
Loan growth remained strong in 3Q19
$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
4.30% 5.21% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000
Loan Yields Average Loans
(millions) CPMK / Magna AVNU BNCN
9 14.2% 14.6% 18.7% 13.3% 11.2% 0.0% 4.0% 8.0% 12.0% 16.0% 20.0%
Annual Organic Loan Growth
(excludes Day 1 merger impact)
*: Year-to-date data annualized
* Excluding loans acquired in Advocate Capital acquisition, quarterly loan growth % annualized was 7.99%. Note: See slide 44 for peer group utilized in the above analysis. Source: S&P Global 10
Loan & Deposit Growth are Keys to Top and Bottom Line Growth
PNFP’s rapid, reliable loan growth outpaces peers and declining PAA
20.06% 11.70% 17.16% 16.29% 11.53% 9.99% 9.75% 24.34% 14.13% 9.80% 17.32% 17.70% 8.15% 5.36% 10.56% 14.11% 11.30% 7.69% 10.14% 6.49% 13.72% 6.17% 8.11% 6.90% 10.85% 5.49% 7.86% 4.00% 6.58%
3.22%
7.18% 6.60% 6.83% 0% 5% 10% 15% 20% 25% 30%
Quarterly Loan Growth % - Annualized PNFP Annualized Loan Growth Median Annualized Loan Growth
N/A
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% $130.0 $140.0 $150.0 $160.0 $170.0 $180.0 $190.0 $200.0
Accretion/ Net Interest Income Net Interest Income (millions)
Net Interest Income Quarterly Trends Purchase Accounting Accretion
Purchase Accounting Accretion Net Interest Income Before Purchase Accounting Accretion Accretion Income to Net Interest income
Net Interest Margin Influences Top and Bottom Line Growth
Loan yields continue to hold during this volatile rate environment
Note: Weighted Average EOP Coupon Trends – excluding leases and credit cards and the impact of purchase accounting adjustments and impact from early payoffs which result in immediate recognition
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At September 30, 2019 (*)
35.8% 16.8% 3.6% 4.8% 38.9%
All Loans
LIBOR Prime T-Bill Fixed Rate <1Y Fixed Rate >1Y
44.3% 21.6% 1.1% 0.0% 33.0%
C&I
34.4% 4.2% 4.2% 57.2%
CRE
45.5% 28.8% 1.4% 24.3%
Construction
Rate Index End-of-Period Weighted Average Coupon New Loans Weighted Average Coupon Origination Mix
June 30, 2019
YOY Change 4Q18 1Q19 2Q19 3Q19 3Q19 LIBOR 4.52% 4.79% 4.55% 0.03% 4.99% 4.83% 4.73% 4.49% 42.9%
1-MO LIBOR 2.31% 2.40% 2.02% (0.29)% 2.35% 2.50% 2.40% 2.18%
Prime 5.50% 5.75% 5.32% (0.18%) 5.95% 6.07% 6.03% 5.36% 23.4%
FFS target 2.25% 2.50% 2.00% (0.25)% 2.50% 2.50% 2.50% 2.00%
Fixed rate 4.47% 4.60% 4.54% 0.07% 4.78% 5.07% 4.89% 4.65% 31.7%
5-YR UST 2.94% 1.76% 1.55% (1.39)% 2.88% 2.53% 2.12% 1.63%
Wholesale Bank Assets
Active management should support long-term performance
12 Note: See slide 44 for peer group utilized in the above analysis. Source: S&P Global
3.00
10.00 15.00 20.00 25.00 30.00 35.00 40.00
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
60% 65% 70% 74% 40% 35% 30% 26%
Bond Portfolio Pricing
End of Period
Fixed Rate Variable Rate
0.00% 0.33% 0.67% 1.00% 1.33% 1.67% 2.00% 2.33% 2.67% 3.00%
$0 $100 $200 $300 $400 $500 $600 $700 $800 $900 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Average quarterly yield Average balances ($ in millions) Quarterly Avg. FFS and Cash Avg FFS and Cash Yield on FFS and Cash
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16.3% 11.8% 16.9% 14.6% 8.1%
0.0% 4.0% 8.0% 12.0% 16.0% 20.0%
Annual Organic Deposit Growth
(excludes Day 1 merger impact)
*: Year-to-date data annualized
Loan & Deposit Growth are Keys to Top and Bottom Line Growth
Funding loan growth as efficiently as possible is the key to our growth
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
EOP FFS Target Cost of Deposits
Deposit Rate Tranches
2018 EOP Rates June 30, 2019 EOP Rates
2019 EOP Rates
2019 % of Totals Noninterest bearing
Rate sheet 0.21% 0.20% 0.13% 13.1% Negotiated 1.57% 1.66% 1.49% 35.2% Indexed 2.46% 2.43% 2.01% 6.5% CDs 2.04% 2.32% 2.29% 21.6% Total 1.16% 1.28% 1.17% 100.0%
Net Interest Margin Influences Top and Bottom Line Growth
PNFP moved quickly on deposit costs when the Fed moved
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1.38% 1.38% 1.39% 1.40% 1.36% 1.28% 1.25% 1.28% 1.30% 1.33% 1.35% 1.38% 1.40% 1.43% 1.45% Apr19 May19 Jun19 Jul19 Aug19 Sep19
Int-Bearing Deposits (ex-CDs)
Real Estate Portfolio Concentrations aggregated by real estate category and common borrower
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Credit Discipline Impacts Bottom Line
Concentration discipline and granularity offer great protection to bottom line
Largest CRE Projects by Category Granularity of Real Estate Portfolio
1,000,000,000 1,500,000,000 2,000,000,000 2,500,000,000 3,000,000,000 3,500,000,000 Non-owner occupied CRE Other Construction and Land Development Owner-occupied CRE Residential Construction Less than $10 million Greater than $10 million, but less than $15 million Greater than $15 million, but less than $20 million Greater than $20 million Top 10 Projects Aggregated Exposure Largest Project in Category Weighted Average of Pro Forma LTV Weighted Average of Original LTC Weighted Average of Pro Forma DSC Construction Portfolio Hotel / Motel 156,539 31,161 65.7% 67.0% 1.73 Medical 233,523 34,468 67.1% 72.9% 1.50 Multifamily 409,154 67,000 55.3% 64.8% 1.29 Professional Office 248,092 50,000 49.2% 60.7% 1.44 Retail 91,379 12,355 65.8% 62.0% 1.27 Storage / Warehouse 301,266 49,696 59.7% 70.4% 1.28 Existing NOO Properties Hotel / Motel 222,591 32,459 59.7% 57.9% 2.02 Medical 188,032 43,400 65.9% 52.0% 1.74 Multifamily 249,793 43,304 60.3% 64.2% 1.40 Professional Office 222,041 37,800 60.1% 60.3% 1.61 Retail 214,789 30,000 63.8% 52.0% 1.43 Storage / Warehouse 192,581 35,250 62.1% 58.6% 1.22 Grand Total $ 2,729,781 $ 466,893 61.2% 61.9% 1.49
$3,500 $4,500 $5,500 $6,500 $7,500
Other Income* (BOLI, Equity Investments, etc.)
Yr/Yr Growth 64.7%
Fee Income Growth Supports Ongoing Top and Bottom Line Growth
PNFP continues to grow strategic fee businesses
$- $10,000 $20,000 $30,000
Income from Equity Method Investment
(BHG)
Yr/Yr Growth 126.5%
$9,000 $10,000 $11,000 $12,000 $13,000
Wealth Management Fees
(Investment, Trust, Insurance)
Yr/Yr Growth 15.1%
$14,000 $16,000 $18,000 $20,000
Deposit-Related Fees (Service Charges, Interchange)
$4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000
Lending-Related Fees (Mortgage, Swaps, SBA)
Yr/Yr Growth 108.1% 0.70% 0.80% 0.90% 1.00% 1.10% 1.20% 1.30% Fees / Avg Assets GAAP Fees / Avg Assets Adjusted* Yr/Yr Growth 15.8%
*: Excludes 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 41-43.
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BHG Continues to Outperform
Continuous improvements have enhanced loan quality while increasing volumes
0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 2012 2013 2014 2015 2016 2017 2018 2019*
Recourse accrual to Outstanding Loans Credit and Prepayment Loss Rates
BHG Credit Experience & Recourse Accrual
Credit Losses Pre-payment Recourse Accrual as a percentage of Outstandings
* Year-to-date annualized Source: Internal data
BHG Annual Loan Volume Originations
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BHG Balance Sheet Going Forward:
A. BHG anticipates finalizing a loan structure whereby it can retain loans on its balance sheet rather than rely totally on GOS model B. BHG will continue to support its auction platform so GOS will remain key to its ongoing earnings C. Near term quarterly earnings will be impacted by this change in strategy
BHG Continues to Outperform Strong demand among bank buyers on BHG’s proprietary auction platform
Source: Internal information
Loan placements YTD 2019 2018 # of individual Bank buyers 482 460 Gross loan yield to borrower 14.56% 14.66% BHG realized spread 9.23% 9.34%
122.9M 202.1M 202.7M 227.8M 240.1M 301.6M 362.3M 396.4M 111.1M 176.5M 176.3M 230.6M 198.4M 202.9M 323.6M 325.5M 137.6M 148.8M 161.5M 146.8M 175.4M 250.6M 261.9M 303.7M 9.60% 11.10% 12.20% 13.80% 13.20% 13.70% 14.20% 14.60%
0% 2% 4% 6% 8% 10% 12% 14% 16% 0M 100M 200M 300M 400M 500M
Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019
WA Portfolio Rate Originations, Placements and Borrower Balance Originations Placements
19 $390.8 $181.5 $393.1 $228.8 $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 $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 Annualized REV/ Associate Annualized EXP/ Associate
3Q17 to 3Q19
(increase of $59,000/ associate)
3Q17 to 3Q19
(increase of $33,300/ associate) 80% 85% 90% 95% 100%
Employee Retention^
Retention % 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Noninterest Expense / Avg Assets GAAP Noninterest Expense / Avg Assets Adjusted**
**: Excludes the impact of ORE expense and income, branch consolidation adjustment and merger-related charges. For a reconciliation of these Non-GAAP financial measures to the comparable GAAP measures, see slide 41-43. ^: 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
Expenses are Leveraged to Produce Top and Bottom Line Growth
Leveraging our associate base is the key to efficiency
PNFP’s has long-targeted top quartile profitability and consistently delivered
Future targets adjusted to focus on critical return metrics
Operating range 3Q19 ACTUALS 3Q19 ACTUALS (Non GAAP)* Return on Average Assets 1.45% to 1.65% 1.62% 1.62% Return on Average Tangible Common Equity 16.5% to 19.0% 18.28% 18.31% Tangible Equity Ratio 8.75% to 9.75% 9.44% 9.44%
*: PNFP Non GAAP excludes merger-related charges, gains and losses on sales of investment securities, ORE expense (income), loss on sale of non-prime automobile portfolio, branch consolidation adjustment and revaluation of deferred tax assets ^: Tangible common equity excludes goodwill, core deposit and other intangible assets Note: For a reconciliation of these Non-GAAP financial measures to the comparable GAAP measures, see slides 41-43. Note: See slide 44 for peer group utilized in the above analysis.
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1.34% 1.35% 1.56% 1.54% 1.69% 1.62% 1.27% 1.02% 1.53% 1.52% 1.55% 1.62% 0.97% 0.89% 1.35% 1.18% 1.23% 1.18% 1.04% 1.41% 1.35% 1.39%
0.80% 0.90% 1.00% 1.10% 1.20% 1.30% 1.40% 1.50% 1.60% 1.70%
ROAA
PNFP Non GAAP* PNFP GAAP Peer Median Top Quartile
2016 2017 2018 1Q19 2Q19 3Q19
16.11% 15.29% 18.57% 17.87% 19.28% 18.31% 15.26% 11.57% 18.18% 17.60% 17.74% 18.28% 11.93% 11.02% 15.31% 14.70% 15.09% 14.83% 12.98% 18.42%
15.50% 15.77%
0.00% 5.00% 10.00% 15.00% 20.00%
ROTCE^
PNFP Non GAAP* PNFP GAAP Peer Median Top Quartile
2016 2017 2018 1Q19 2Q19 3Q19
$0.52 $0.66 $0.78 $0.90 $1.22 $1.45
FD EPS*
CAGR 22.8%
$14.98 $17.09 $19.69 $23.32 $26.21 $31.60
Tangible Book Value per Share**
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PNFP prioritizes long-term EPS and TBV creation
We hold fast to the correlation between EPS, TBV growth and long-term share price appreciation
*: excluding merger-related charges, gains and losses on sales of investment securities, ORE expense (income), loss on sale of non-prime automobile portfolio, branch consolidation adjustment 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 41-43.
We remain committed to long-term shareholder value creation through top and bottom line growth
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2019 Focus Items
Grow core deposits while managing funding costs Low double-digit annualized loan growth EPS growth in top quartile of peer group
Long-term Shareholder Value Creation Thesis
Hiring revenue producers Emphasizing revenue growth over managing expenses Growing tangible book value
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THIRD QUARTER 2019
Supplemental Information
Chart
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Balance Sheet – Loan Portfolio
Amts. 3Q19 % 3Q19 Amts. 2Q19 % 2Q19 Amts. 3Q18 % 3Q18 Amts. 3Q17 % 3Q17 C&I $5,891.0 30.5% $5,795.1 30.8% $5,006.2 28.7% $3,971.3 26.0% CRE – Owner Occ. 2,595.8 13.4% 2,624.2 13.9% 2,688.2 15.4% 2,433.8 15.9% Total C&I & O/O CRE $8,486.8 43.9% $8,419.3 44.7% $7,694.4 44.1% $6,405.1 41.9% CRE – Investment 4,443.7 23.0% 4,252.1 22.6% 3,818.1 21.8% 3,398.4 22.3% CRE – Multifamily and other 669.7 3.5% 709.1 3.8% 708.8 4.1% 617.9 4.0% C&D and Land 2,253.3 11.6% 2,118.0 11.3% 2,059.0 11.8% 1,939.8 12.7% Total CRE & Construction $7,366.7 38.1% $7,079.2 37.6% $6,585.9 37.7% $5,956.1 39.0% Consumer RE 3,025.5 15.6% 2,949.8 15.8% 2,815.2 16.1% 2,541.1 16.7% Consumer and other 466.6 2.4% 366.0 1.9% 368.5 2.1% 357.5 2.4% Total Other $3,492.1 18.0% $3,315.8 17.7% $3,183.7 18.2% $2,898.6 19.1% Total loans $19,345.6 100.0% $18,814.3 100.0% $17,464.0 100.0% $15,259.8 100.0%
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Balance Sheet – Loan Portfolio
TOTAL PINNACLE TENNESSEE LOANS CAROLINAS/ VA LOANS OTHER UNIT LOANS* Amts. 3Q19 Amts. 3Q18 Amts. 3Q19 Amts. 3Q18 Amts. 3Q19 Amts. 3Q18 Amts. 3Q19 Amts. 3Q18 C&I $5,891.0 $5,006.2 $4,381.2 $3,929.8 $834.1 $679.4 $675.7 $397.0 CRE – Owner Occ. 2,595.8 2,688.2 1,477.5 1,547.8 957.3 1,058.8 161.1 81.6 Total C&I & O/O CRE $8,486.8 $7,694.4 $5,858.7 $5,477.6 $1,791.4 $1,738.2 $836.8 $478.6 CRE – Investment 4,443.7 3,818.1 1,844.9 1,631.1 2,540.9 2,136.1 58.0 50.9 CRE – Multifamily and other 669.7 708.8 462.0 498.0 186.9 206.1 20.8 4.7 C&D and Land 2,253.3 2,059.0 1,299.5 1,237.9 929.1 794.0 24.6 27.1 Total CRE & Construction $7,366.7 $6,585.9 $3,606.4 $3,367.0 $3,656.9 $3,136.2 $103.4 $82.7 Consumer RE 3,025.5 2,815.2 1,500.0 1,294.9 1,205.2 1,205.1 320.3 315.2 Consumer and other 466.6 368.5 289.3 168.3 86.3 88.7 91.0 111.5 Total Other $3,492.1 $3,183.7 $1,789.3 $1,463.2 $1,291.5 $1,293.8 $411.3 $426.7 Total Loans $19,345.6 $17,464.0 $11,254.3 $10,307.8 $6,739.8 $6,168.2 $1,351.5 $988.0 Average Ticket Size (in ‘000s) $277.2 $248.0 $391.6 $387.0 $203.7 $187.5 $169.5 $543.7
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Note: Percentages noted in red text represent year-over-year growth rates. *: Represents mortgage, associate banking, automobile finance and various other business lines.
Balance Sheet – Loan Portfolio
TOTAL PINNACLE C&I & O/O CRE CRE & CONSTRUCTION OTHER LOANS* Amts. 3Q19 Amts. 3Q18 Amts. 3Q19 Amts. 3Q18 Amts. 3Q19 Amts. 3Q18 Amts. 3Q19 Amts. 3Q18 Nashville $6,237.8 $6,054.9 $2,901.2 $2,992.9 $2,246.6 $2,193.0 $1,089.9 $869.0 Knoxville 1,696.4 1,530.8 1,031.1 915.8 483.9 457.9 181.5 157.1 Music and Entertainment 411.6 262.8 293.5 166.0 20.1 19.5 98.0 77.3 Chattanooga 1,363.4 1,209.3 807.0 717.9 319.7 280.3 236.8 211.1 Memphis 1,545.1 1,250.0 825.8 685.0 536.1 416.3 183.1 148.7 Total Tennessee $11,254.3 $10,307.8 $5,858.7 $5,477.6 $3,606.4 $3,367.0 $1,789.3 $1,463.2 Greensboro/Highpoint 1,679.3 1,568.4 585.0 541.8 817.3 725.8 277.0 300.8 Charlotte 1,955.6 1,797.9 472.1 456.3 1,082.3 973.0 401.1 368.6 Raleigh 1,165.6 1,048.1 203.3 282.6 809.4 625.0 152.9 140.5 Charleston 895.3 816.4 171.3 152.5 443.4 361.7 280.5 302.2 Greenville 437.9 400.4 120.9 102.6 269.1 251.6 47.9 46.2 Roanoke 490.0 442.6 136.1 125.6 222.1 181.8 131.8 135.2 SBA 116.1 94.4 102.7 76.8 13.3 17.3 0.2 0.3 Total Carolina/VA $6,739.8 $6,168.2 $1,791.4 $1,738.2 $3,656.9 $3,136.2 $1,291.5 $1,293.8 Other 1,351.5 988.0 836.8 478.6 103.5 82.7 411.3 426.7 Total $19,345.6 $17,464.0 $8,486.9 $7,694.4 $7,366.7 $6,585.9 $3,492.1 $3,183.7
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Note: Percentages noted in red text represent year-over-year growth rates. *: Represents mortgage, associate banking, automobile finance and various other business lines.
Balance Sheet – Loan Portfolio
Amts. 3Q19 % 3Q19 Amts. 2Q19 % 2Q19 Amts. 3Q18 % 3Q18 Amts. 3Q17 % 3Q17 Residential – Spec $360.0 1.9% $350.4 1.9% $321.6 1.8% $253.3 1.7% Residential – Custom 129.1 0.7% 129.5 0.7% 146.0 0.8% 157.4 1.0% Residential – Condo 1.0 0.0% 0.7 0.0%
13.3 0.1% Commercial Construct. 1,369.1 7.1% 1,254.8 6.7% 1,112.5 6.4% 1,030.8 6.8% Land Dev– Residential 243.3 1.3% 211.7 1.1% 166.0 1.0% 191.4 1.3% Land Dev – Commercial 92.2 0.5% 113.2 0.6% 191.2 1.1% 190.2 1.2% Land Dev – Mixed Use 4.4 0.0% 4.5 0.0% 38.0 0.2% 56.4 0.4% Land – Unimproved 54.2 0.3% 53.2 0.3% 83.7 0.5% 47.0 0.3% Total Construction and Land Dev. $2,253.3 11.6% $2,118.0 11.3% $2,059.0 11.8% $1,939.8 12.8%
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Balance Sheet – Loan Portfolio
TOTAL PINNACLE TENNESSEE LOANS CAROLINAS/VA LOANS OTHER UNIT LOANS Amts. 3Q19 Amts. 3Q18 Amts. 3Q19 Amts. 3Q18 Amts. 3Q19 Amts. 3Q18 Amts. 3Q19 Amts. 3Q18 Residential – Spec $360.0 $321.6 $251.0 $232.2 $107.6 $89.4 $1.5 $0.0 Residential – Custom 129.1 146.0 76.6 96.9 50.4 49.1 2.1 0.0 Residential – Condo 1.0 0.0 1.0 0.0 0.0 0.0 0.0 0.0 Commercial Construct. 1,369.1 1,112.5 728.6 638.5 639.2 472.6 1.3 1.4 Land Dev– Residential 243.3 166.0 149.7 100.0 78.0 47.2 15.6 18.8 Land Dev – Commercial 92.2 191.2 53.3 97.6 37.0 89.5 1.9 4.1 Land Dev – Mixed Use 4.4 38.0 3.8 8.1 0.5 29.9 0.0 0.0 Land – Unimproved 54.2 83.7 35.5 64.6 16.5 16.3 2.3 2.8 Total Construction and Land Dev. $2,253.3 $2,059.0 $1,299.5 $1,237.9 $929.1 $794.0 $24.7 $27.1 Average Ticket Size (in ‘000s) $551.5 $504.7 $628.7 $592.6 $480.9 $418.6 $283.6 $571.8
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Balance Sheet – Loan Portfolio
Total NOO and Multifamily Total Construction Total NOO and Construction Amts. 3Q19 Amts. 2Q19 Amts. 3Q18 Amts. 3Q19 Amts. 2Q19 Amts. 3Q18 Amts. 3Q19 Amts. 2Q19 Amts. 3Q18 Multifamily $669.7 $709.1 $708.8 $430.0 $319.2 $412.2 $1,099.7 $1,028.3 $1,121.0 Hospitality 782.1 783.0 651.1 39.0 117.3 106.8 821.1 900.3 757.9 Retail 1,336.4 1,284.1 1,243.2 143.1 115.4 145.6 1,479.5 1,399.5 1,388.8 Office 795.7 724.1 669.3 87.4 88.2 87.2 883.1 812.3 756.5 Warehouse 708.1 657.8 605.0 294.7 227.8 180.3 1,002.8 885.6 785.3 Medical 396.3 383.9 278.1 135.5 132.6 105.8 531.8 516.5 383.9 Other 425.1 419.2 371.4 1,123.6 1,117.5 1,021.1 1,548.7 1,536.7 1,392.5 Total $5,113.4 $4,961.2 $4,526.9 $2,253.3 $2,118.0 $2,059.0 $7,366.7 $7,079.2 $6,585.9 Average Ticket Size (in ‘000s) $1,789.4 $1,752.5 $1,580.8 $551.5 $516.8 $504.4 $1,061.9 $1,022.7 $948.8 .8
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Balance Sheet – Loan Portfolio
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Balance Sheet – Loan Portfolio
0.00% 0.10% 0.20% 0.30% CRE Construction C&I Net commercial charge
Net Commercial Loan Charge Offs by Loan Type
2014 2015 2016 2017 2018 YTD 2019 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
2014 2015 2016 2017 2018 YTD 2019 Annualized
Balance Sheet – Loan Portfolio
Description 3Q19 2Q19 1Q19 4Q18 3Q18 2Q18
Loans secured by real estate: Construction, land development, and other loans: 1-4 family residential construction loans $575,975 $564,339 $575,753 $541,253 $523,300 $488,893 Other construction loans and all land development and other land loans 1,677,328 1,553,630 1,521,817 1,531,202 1,535,709 1,644,753 Loans included in the 100% test $2,253,303 $2,117,969 $2,097,570 $2,072,455 $2,059,009 $2,133,646 Secured by multifamily (5 or more) residential properties $686,385 $726,744 $706,097 $671,156 $718,953 $716,781 Loans secured by other nonfarm nonresidential properties 4,443,687 4,252,098 4,107,953 3,855,643 3,818,055 3,822,182 Financed real estate not secured by real estate 306,738 310,371 136,306 154,527 145,880 189,690 Loans included in the 300% test $7,690,113 $7,407,182 $7,047,926 $6,753,781 $6,741,897 $6,862,299
2,Total Risk-Based Capital $2,818,988 $2,563,617 $2,495,127 $2,432,419 $2,344,597 $2,254,929 % of Total Risk-Based Capital 100% Test – Construction and Land Development 80% 83% 84% 85% 88% 95% 300% Test – Construction and Land Development + NOOCRE + Multifamily 273% 289% 283% 278% 288% 304%
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Balance Sheet – Deposit Portfolio
TOTAL DEPOSITS CORE DEPOSITS NONCORE DEPOSITS TOTAL PINNACLE TRANSACTION AND MMDA CDs PUBLIC FUNDS and OTHER DEPOSITS 3Q19 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 3Q18 Nashville $7,716.1 $7,108.8 $6,855.3 $6,357.3 $561.6 $478.5 $299.2 $273.0 Knoxville 1,647.0 1,407.0 1,485.6 1,324.4 118.2 50.3 43.2 32.3 Music and Entertainment 305.4 246.3 298.5 243.1 1.7 1.5 5.2 1.7 Memphis 912.0 982.3 709.1 834.5 148.2 114.3 54.7 33.5 Chattanooga 1,008.2 791.5 883.2 715.7 60.8 38.8 64.2 37.0 Total Tennessee $11,588.7 $10,535.9 $10,231.7 $9,475.0 $890.5 $683.4 $466.5 $377.5 Greensboro/Highpoint 1,982.6 1,939.5 1,569.7 1,613.4 280.3 241.6 132.6 84.5 Charlotte 1,231.2 1,092.8 899.6 839.1 209.1 180.4 122.5 73.3 Charleston 954.4 921.5 743.1 717.7 172.3 168.0 39.0 35.8 Raleigh 635.9 585.3 557.9 470.7 54.9 55.0 23.1 59.6 Roanoke 648.9 599.3 493.8 476.2 131.7 105.9 23.4 17.2 Greenville 328.2 362.8 208.7 257.6 83.7 76.3 35.8 28.9 Total Carolinas / VA $5,781.2 $5,501.2 $4,472.8 $4,374.7 $932.0 $827.2 $376.4 $299.3 Other 2,630.8 2,370.4 528.4 589.4 48.1 127.1 2,054.3 1,653.9 Total $20,000.7 $18,407.5 $15,232.9 $14,439.1 $1,870.6 $1,637.7 $2,897.2 $2,330.7
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Note: Percentages noted in red text represent year-over-year growth rates.
Balance Sheet – Bond Portfolio
Conservative bond portfolio
34 3% 2% 33% 5% 6% 52% Agency/Treasury Corporates MBS Asset Backed CMOs Municipals
Portfolio: September 30, 2019
Total Investments $3.583 billion Net Unrealized Gain (Loss) $43.1 million
Quarter Duration
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% 2Q17 3.3% 2.5% 1Q17 3.4% 2.4% 4Q16 3.2% 2.3%
Asset Quality
(*) > 30 days past due (**) Excludes past due loans rated substandard
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(000S) September 30, 2019 AS A % OF TOTAL LOANS June 30, 2019 AS A % OF TOTAL LOANS September 30, 2018 AS A % OF TOTAL LOANS
Past Due Loans (*)
Nonaccrual loans $39,548 0.20% $41,282 0.22% $23,268 0.13% Accruing loans 45,591 0.24% 40,199 0.21% 43,991 0.25%
Total past due $85,139 0.44% $81,481 0.43% $67,259 0.38% NPLs and > 90 days
$2,047 0.01% $2,395 0.01% $3,395 0.02% Consumer RE 23,862 0.12% 30,117 0.16% 25,266 0.14% CRE – Owner Occupied 11,908 0.06% 13,011 0.07% 21,493 0.12% CRE – Investment 10,683 0.06% 10,850 0.06% 5,100 0.03% Total real estate 48,500 0.25% 56,373 0.30% 58,627 0.34% C&I 26,438 0.14% 21,420 0.11% 19,408 0.11% Other 776 0.00% 1,017 0.01% 1,606 0.01%
Total loans $75,714 0.39% $78,810 0.42% $79,641 0.46% Classified loans and ORE
Substandard commercial loans $306,920 1.59% $283,259 1.51% $259,711 1.49% Doubtful commercial loans 1 0.00% 1 0.00%
Other impaired loans 25,859 0.12% 25,273 0.13% 24,846 0.14% 90 days past due and accruing (**) 2,385 0.01% 2,644 0.01% 1,773 0.01% Other real estate 30,049 0.16% 26,657 0.14% 17,467 0.10% Other repossessed assets
1 0.00% 263 0.00%
Total $363,214 1.80% $337,836 1.80% $304,058 1.74%
Pinnacle Bank classified asset ratio 13.5% 13.9% 13.7%
**: 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 41-43.
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Operating Leverage
3Q19 2Q19 1Q19 4Q18 3Q18 2Q18 1Q18 4Q17 3Q17
Service charges $10,193 $8,940 $8,542 $9,754 $9,972 $8,456 $7,905 $8,799 $8,695 Investment services 6,270 5,868 5,468 6,168 5,450 5,112 5,255 4,858 4,194 Insurance commissions 2,252 2,147 2,928 2,038 2,126 2,048 3,119 1,961 2,124 Gain on mortgage loans sold, net 7,402 6,011 4,878 3,141 3,902 3,778 3,744 3,839 5,963 Investment gains and losses on sales, net 417 (4,466) (1,960) (2,295) 11
(8,264)
3,593 3,461 3,295 3,375 3,087 3,563 3,118 2,645 2,636 Income from equity method investment 32,248 32,261 13,290 17,936 14,236 9,689 9,361 12,443 8,937 Other: Interchange and other consumer fees 9,597 9,091 7,507 8,133 7,112 7,030 6,471 5,778 4,891 Bank-owned life insurance 4,558 4,201 4,095 3,492 3,397 2,894 2,752 1,467 1,276 Loan swap fees 2,250 799 761 2,055 251 752 504 187 529 SBA loans sales 1,168 1,171 572 1,194 565 1,728 1,118 724 1,134 Gain (loss) on other equity investments 584 832 782 562 (85) 2,112 189 (499) 333 Other 2,087 366 905 1,717 1,454 777 617 2,288 2,539 Total noninterest income $82,619 $70,682 $51,063 $57,270 $51,478 $47,939 $44,183 $36,226 $43,251 Noninterest income/Average Assets 1.21% 1.09% 0.83% 0.92% 0.85% 0.83% 0.81% 0.66% 0.80% Noninterest income** $82,202 $76,684 $53,023 $59,565 $51,467 $47,939 $44,153 $44,490 $43,251 Noninterest Income**/Total Average Assets 1.20% 1.19% 0.86% 0.96% 0.85% 0.83% 0.81% 0.81% 0.80%
Operating Leverage
*: Excluding the impact of ORE expense and income, merger-related expenses and branch consolidation adjustment. **: Excluding the impact of ORE expense and income, securities gains and losses, merger-related charges, branch consolidation adjustment and loss on the sale of non-prime automobile portfolio. For a reconciliation of these Non-GAAP financial measures to the comparable GAAP measures, see slide 41-43.
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3Q19 2Q19 1Q19 4Q18 3Q18 2Q18 1Q18 4Q17 3Q17 Salaries and employee benefits: Salaries $47,369 $44,625 $45,056 $41,965 $41,024 $39,136 $39,104 $39,950 $41,252 Commissions 3,637 3,224 3,140 3,456 3,011 3,148 3,029 2,045 2,026 Cash and equity incentives 23,631 16,159 11,163 18,082 14,505 11,224 10,180 12,253 11,568 Employee benefits and other 11,282 11,612 11,017 11,222 10,577 10,604 11,406 9,098 9,442 Total salaries and benefits 85,919 75,620 70,376 74,725 69,117 64,112 63,719 63,346 64,288 Equipment and occupancy 20,348 23,844 19,331 19,073 19,252 18,208 17,743 17,114 16,590 Other real estate owned, net 655 2,523 246 631 67 819 (794) 252 512 Marketing and other business development 2,723 3,282 2,948 3,628 3,293 2,544 2,247 2,093 2,222 Postage and supplies 1,766 2,079 1,892 1,831 1,654 2,291 2,039 1,662 1,755 Amortization of intangibles 2,430 2,271 2,311 2,576 2,616 2,659 2,698 3,071 3,077 Merger-related expenses
5,353 19,103 8,847 Other noninterest expense: Deposit related expense 4,773 4,873 4,543 5,033 5,982 6,078 5,675 6,156 2,790 Lending related expense 7,075 5,401 5,299 5,181 5,664 4,695 3,908 3,964 3,850 Wealth management related expense 426 610 530 417 433 465 523 160 393 Other noninterest expense 6,826 7,183 6,575 6,314 5,912 6,131 5,469 6,052 5,410 Total other noninterest expense 19,100 18,067 16,947 16,945 17,991 17,369 15,575 16,332 12,443 Total noninterest expense $132,941 $127,686 $114,051 $119,409 113,990 $110,908 $108,580 $122,973 $109,734 Efficiency ratio 47.75% 49.19% 47.9% 48.3% 47.3% 48.2% 49.7% 58.2% 50.8% Expense/Total Average Assets 1.94% 1.98% 1.85% 1.92% 1.87% 1.91% 1.98% 2.22% 2.05% Noninterest expense * $132,286 $121,974 $113,805 $118,778 $113,923 $107,183 $104,021 $103,618 $100,375 Efficiency ratio ** 47.6% 45.9% 47.4% 48.0% 47.3% 46.6% 47.6% 47.2% 46.4% Noninterest Expense*/Total Average Assets 1.93% 1.89% 1.84% 1.91% 1.87% 1.85% 1.90% 1.87% 1.88%
Income Statement – Discount Accretion, Income Tax Rate and Share Repurchase Program
Life to date accretion approximates original
in accretion income in future periods. Continue to pursue tax initiatives to reduce firm’s ETR.
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3Q19 2Q19 1Q19 4Q18 # of shares repurchased 199,032 130,888 543,585 405,200 Value of shares $11.1m $7.4m $30.0m $20.7m
$55.57 $56.31 $55.25 $51.07
Share Repurchase Program
15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00%
Core Income Tax Effective Tax Rate Trends
Income tax as % of pre-tax income, excluding discrete items Blended statutory tax rate
$10,000 $15,000 $20,000 $25,000
Actual/Anticipated Discount Accretion Through Dec 2019 (in thousands)
$62 mm $38 mm
Income Statement – Mortgage Volumes
0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% $25,000 $75,000 $125,000 $175,000 $225,000 $275,000 $325,000
Purchase Money Refinance Gross fees as a % of loans originated
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Income Statement – Reconciliation of Non-GAAP Financial Measures
40
Income Statement – Reconciliation of Non-GAAP Financial Measures
41
Income Statement – Reconciliation of Non-GAAP Financial Measures
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Peer Group
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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THIRD QUARTER 2019
HAROLD R. CARPENTER, EVP AND CFO