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

Third Quarter 2013 Investor Call

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

Forward-looking statements

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

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

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

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

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

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

interest rate environment; (iii) the inability of Pinnacle Financial to grow its loan portfolio; (iv) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (v) effectiveness of Pinnacle Financial’s asset management activities in improving, resolving or liquidating lower-quality assets; (vi) increased competition with other financial institutions; (vii) greater than anticipated adverse conditions in the national or local economies including the Nashville-Davidson-Murfreesboro- Franklin MSA and the Knoxville MSA, particularly in commercial and residential real estate markets; (viii) rapid fluctuations or unanticipated changes in interest rates on loans or deposits; (ix) the results of regulatory examinations; (x) the ability to retain large, uninsured deposits; (xi) the development of any new market other than Nashville or Knoxville; (xii) a merger or acquisition; (xiii) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including intangible assets; (xiv) the ability to attract additional financial advisors or to attract customers from other financial institutions; (xv) further deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xvi) inability to comply with regulatory capital requirements, including those resulting from recently adopted changes to capital calculation methodologies and required capital maintenance levels; (xvii) risks associated with litigation, including the applicability of insurance coverage; (xviii) approval of the declaration of any dividend by Pinnacle Financial’s board of directors and, (xviii) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, including regulatory or legislative developments arising out of current unsettled conditions in the economy, including implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act. A more detailed description of these and other risks is contained in Pinnacle Financial's most recent annual report on Form 10-K filed with the Securities and Exchange Commission on February 22, 2013 and Pinnacle Financial’s most recent quarterly report on Form 10-Q filed with the Securities and Exchange Commission on July 31, 2013. Many of such factors are beyond Pinnacle Financial's ability to control or predict, and readers are cautioned not to put undue reliance on such forward-looking statements. Pinnacle Financial disclaims any obligation to update or revise any forward-looking statements contained in this release, whether as a result of new information, future events or otherwise.

Safe Harbor Statements

2

3

3Q13 was another quarter of solid execution

$20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 (thousands) Net Interest Income 0% 80% 160% 240% 320% 400% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% ALL Coverage % NPL % Growing NPL Coverage $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 $14,000 (thousands) Core Non-interest income (1) 2.10% 2.20% 2.30% 2.40% 2.50% 2.60% 2.70% Core Non-interest Expense/ Average Assets (2,3)

3Q13 Profitability, Earnings and Quarterly Progress

(1) - Calculation excludes net gains and losses on the sale of investment securities and noncredit related loan losses (2) - Calculation excludes OREO expense and FHLB prepayment charges (3) - Non-interest expense for 2Q13 includes the impact of the reversal of a $2.0 million allowance for off-balance sheet commitments

4

Net interest income grew despite margin contraction

3Q13 Profitability, Earnings and Quarterly Progress

$36.0 $37.8 $38.4 $39.3 $39.5 $40.2 $40.9 $42.2 $42.8 $43.6 $44.6

3.40% 3.55% 3.60% 3.65% 3.74% 3.76% 3.78% 3.80% 3.90% 3.77% 3.72%

3.10% 3.20% 3.30% 3.40% 3.50% 3.60% 3.70% 3.80% 3.90% 4.00% $34 $36 $38 $40 $42 $44 $46

Net Interest Margin Net Interest Income

(millions)

5

Yields contracted yet NII expanded as loans grew 12.9% year-over-year

$3,191 $3,212 $3,207 $3,262 $3,280 $3,403 $3,489 $3,580 $3,682 $3,845 $3,932

4.88% 4.33%

3.60% 4.00% 4.40% 4.80% 5.20% 5.60% 6.00% $3,000 $3,100 $3,200 $3,300 $3,400 $3,500 $3,600 $3,700 $3,800 $3,900 $4,000

Loan Yields Average Loans

(millions)

Avg Loans Loan Yields

3Q13 Profitability, Earnings and Quarterly Progress

6

Lower deposit costs lessened the impact of decreasing loan yields

$3,772 $3,723 $3,700 $3,642 $3,597 $3,636 $3,706 $3,883 $3,950 $3,963 $4,199 1.01% 0.26%

0.20% 0.33% 0.45% 0.58% 0.70% 0.83% 0.95% 1.08% 1.20% $3,250 $3,350 $3,450 $3,550 $3,650 $3,750 $3,850 $3,950 $4,050 $4,150 $4,250

Deposit Costs (%)

• Avg. Deposits

(millions)

Avg Deposits Cost of Deposits

3Q13 Profitability, Earnings and Quarterly Progress

7

Pinnacle’s net interest margin has been built on success with clients

3Q13 Profitability, Earnings and Quarterly Progress

1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% Treasury Margin Client Margin Net Interest Margin Client Margin – Measures the ratio of interest earnings of the loan portfolio as supported by non-collateralized customer deposits plus wholesale funds needed, if any, plus equity. Treasury Margin – Measures the ratio of interest earnings of other earning assets as supported by collateralized customer deposits plus wholesale funds.

8

Core fees progressed to the highest level in firm history

3Q13 2Q13 1Q13 4Q12 3Q12 Service charges $2,797 $2,541 $2,480 $2,623 $ 2,532 Investment services 1,956 1,895 1,793 2,051 1,677 Insurance commissions 1,021 1,108 1,393 1,045 987 Gain on mortgage loans sold, net 1,326 1,949 1,814 1,768 1,979 Trust fees 932 880 944 863 767 Other: Securities gains (losses) (1,441) (25)

• 1,988

(50) Other 4,796 2,978 3,478 2,770 2,538 Total noninterest income $11,387 $11,326 $11,902 $13,108 $ 10,430 Less: Securities gains (losses) (1,441) 25

• (1,988)

50 Noncredit related loan losses

• 771
• Core noninterest income

$12,828 $12,122 $11,902 $11,120 $ 10,480 Total Assets (Quarterly Average) $5,313,003 $5,210,600 $4,992,018 $4,964,521 $4,860,394 Noninterest income/Average Assets 0.85% 0.87% 0.97% 1.05% 0.85% Noninterest income/Average Assets* 0.96% 0.93% 0.97% 0.89% 0.86%

* Excludes the impact of securities sales and noncredit related loan losses

3Q13 Profitability, Earnings and Quarterly Progress

9

Ratio PNFP 1Q12 PNFP 2Q12 PNFP 3Q12 PNFP 4Q12 PNFP 1Q13 PNFP 2Q13(3) PNFP 3Q13 PNFP Long-term Targets

NIM 3.74% 3.76% 3.78% 3.80% 3.90% 3.77% 3.72% 3.70%-3.90% Net Charge-offs 0.44% 0.28% 0.22% 0.24% 0.24% 0.36% 0.21% 0.20%-0.35% Noninterest Income / Total Average Assets 0.83%(1) 0.81%(1) 0.86%(1) 0.89%(1) 0.97%(1) 0.93%(1) 0.96%(1) 0.70%-0.90% Noninterest Expense / Total Average Assets 2.60%(2) 2.56%(2) 2.55%(2) 2.52%(2) 2.51%(2) 2.27%(2) 2.44%(2) 2.10%-2.30% ROAA 0.60% 0.65% 0.93% 0.94% 1.09% 1.10% 1.09% 1.10%-1.30%

(1) - Calculation excludes net gains and losses on the sale of investment securities and in the second quarter of 2013 noncredit related loan losses (2) - Calculation excludes OREO expense and FHLB prepayment charges (3) – Noninterest expense for 2Q13 includes the impact of the reversal of a $2.0 million allowance for off-balance sheet commitments

PNFP continues the trajectory toward its long-term profitability targets

3Q13 Profitability, Earnings and Quarterly Progress

10

Lenders are leveraging capacity to take share and grow loans

$1.27 Billion Target

FA Capacity Thru 3Q2013

(billions of dollars)

2012 - 2014 Anticipated Net Loan Growth

$678.0 million net growth thru 3Q2013

$1.27 Billion Capacity 11.5% CAGR

12.6% AGR (Last 4 Quarters) 11.3% CAGR (1/1/2012-9/30/2013)

Previously reported growth Current quarter growth Financial Advisor capacity

Loan, Deposit and Fee Growth Yield Operating Leverage

11

Loan growth is a function of improving demand and market share movement

Source: Internal loan records, new loans to new clients based on review of new tax ID’s recorded during the first nine months of 2013. All accounts > $250,000 reviewed by relationship managers to determine new client vs existing clients. Excludes net change in lines of credit.

Loan, Deposit and Fee Growth Yield Operating Leverage

New clients, 49.8% Existing clients, 50.2%

New Loans YTD 2013

$0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500

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

Loan Volumes

($ thousands)

New loans Pay offs/ Pay downs

12

Loan pay offs remain a significant headwind

Third Quarter 2013 Highlights

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

• credit. Pay offs and pay downs include monthly amortization of existing loans.

$957 $959 $1,000 $975 $1,009 $1,054 $1,055 $1,138 $1,105 $1,166 $1,190 $747 $715 $685 $779 $808 $787 $815 $865 $941 $926 $989 56.15% 54.61%

30% 35% 40% 45% 50% 55% 60% 65% 70% $0 $500 $1,000 $1,500 $2,000 $2,500

Funded % Total Commitments

(millions)

Net active balance Unfunded Commitments Funded %

Line commitments are up 16.5% over 3Q12

13

Note: Excludes HELOCS and credit cards

Loan, Deposit and Fee Growth Yield Operating Leverage

Loan growth is primarily funded by growth in low cost deposits

14

Loan, Deposit and Fee Growth Yield Operating Leverage

% of Deposits by Type to Total Deposits

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

0% 10% 20% 30% 40% 50% 60% 70% Trans Accounts CDs Savings & MMA 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100%

• $200,000
• $100,000

$0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 Net loan growth Trans, Savings and MMDA growth Average Loans to Average deposits

15

The core efficiency ratio at 3Q13 stands at 56.8%

3Q13 2Q13 1Q13 4Q12 3Q12 Salaries and benefits $21,010 $20,570 $19,572 $19,556 $19,470 Equipment and occupancy 5,413 5,204 5,113 5,202 5,156 Other real estate owned 699 1,390 721 1,365 2,399 Marketing and Bus. Dev. 721 987 791 1,276 835 Supplies and postage 581 518 592 563 638 Intangible amortization 247 248 521 683 683 Other expenses: FHLB restructuring charges

• 877

2,092

• Other expenses

4,652 1,944(1) 4,253 4,114 4,397 Total noninterest expense $33,323 $30,862 $32,440 $34,851 $33,578 Efficiency ratio 59.5% 56.2% 59.3% 63.0% 65.4% Core noninterest expense ** $32,624 $29,471 $30,842 $31,395 $31,179 Core efficiency ratio * 56.8% 52.9% 56.4% 58.8% 60.6% Total Assets (Quarterly Average) $5,313,003 $5,210,600 $4,992,018 $4,964,521 $4,860,394 Expense/Total Average Assets 2.49% 2.38% 2.64% 2.79% 2.75% Core Noninterest Expense**/Total Average Assets 2.44% 2.27% 2.51% 2.52% 2.55%

* Excludes gain on sale of securities, noncredit related loan losses, ORE and FHLB restructuring charges ** Excludes the impact of OREO expense and FHLB restructuring charges

(1) Includes a $2.0 million reversal of a previously recorded allowance for off-balance liabilities

Operating Leverage Enhances Profitability

Floors have enhanced margin and represent reduced risk going forward

16

Potential Ongoing Impact on Growth, Earnings and Valuation

4.99% 4.41% 3.66% 3.54% 0.0% 1.5% 3.0% 4.5% 6.0% $1,200 $1,220 $1,240 $1,260 $1,280 $1,300 $1,320 $1,340 $1,360 Dec 2010 Dec 2011 Dec 2012 Mar 2013 Jun 2013 Sep 2013 (millions of dollars) Floor Volumes Weighted Avg Floor Rate Contract Rate 1.33% 0.87%

17

Margin outlook for 2013 is consistent with the targeted range

Opportunities:

• 1. Loan growth
• 2. Continued reduction in cost of funds
• 3. Growth in low cost core deposits

Threats:

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

Anticipated 2013 Margin Range 3.70% to 3.80%

Potential Ongoing Impact on Growth, Earnings and Valuation

18

Potential Ongoing Impact on Growth, Earnings and Valuation

Fee income has relatively limited exposure to shrinking mortgage refi’s

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 ($ thousands)

Noninterest income by Line of Business

Deposit & Interchange Wealth Management Mortgage, net of commission

Refinance/Purchase Mix

Refinance Purchases

Pinnacle is leveraging existing infrastructure and adding growth capacity

19

Potential Ongoing Impact on Growth, Earnings and Valuation

$- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 Assets per Associate (000's) Pinnacle Financial Partners, Inc. Median*

• 50.00

100.00 150.00 200.00 250.00 300.00 350.00 Revenue per Associate (000's) Pinnacle Financial Partners, Inc. Median *

*: Represents median of McLagan peer group; see page 56 of supplementary materials

20

Potential Ongoing Impact on Growth, Earnings and Valuation

PNFP operates in advantaged markets

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

Nashville Home Sales

3Q2013 3Q2012 % Change

• Avg. Qtrly. Median

Home Price $197,887 $177,083 11.8% Quarterly Closings 7,331 6,190 18.4% Quarter end Inventory 10,183 11,055 (7.5%) Months of Inventory 4.73 5.85 (19.1%)

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Unemployment Rates seasonally adjusted (Thru July 2013) Nashville MSA Knoxville rate US

21

Potential Ongoing Impact on Growth, Earnings and Valuation

PNFP is dominating the commercial market in Nashville

Regional B Regional C National A Regional A 6% 8% 10% 12% 14% 16% 18% 20%

• 10

10 20 30 40 50 60 70 80 90

Lead Relationships as a % of Total Market (%) Net Promoter Score

Pinnacle Financial **

*Question: How likely are you to specifically recommend (Lead Bank) in the future to a friend or colleague using a scale of 0-10

where "0" means Not At All Likely and "10" means Extremely Likely? Which bank or non-bank do you consider to be your company's single most important or lead provider of banking services? ** Source 2013 Greenwich Associates Market Tracking Program (Pinnacle Financial - Nashville - $1-500 Million - Rolling 4Q to Q2 2013)

22

Potential Ongoing Impact on Growth, Earnings and Valuation

Dividends may enhance valuations Factors that argue for a sustainable dividend strategy

• Should not impact our growth prospects
• Should attract yield-oriented investors to PNFP
• Appears market is assigning a premium to dividend payers

Factors that argue against a sustainable dividend strategy

• Investors could draw wrong conclusion regarding future growth
• Once started - difficult to unwind, difficult to reduce

23

Potential Ongoing Impact on Growth, Earnings and Valuation

Profitability provides cushion for current rate of growth and a dividend

PNFP At Dec. 31, 2012 At Sept. 30, 2013 Net Change Percent Change Loans $3,712.2 $3,969.3 $257.1 6.9% RW % 94.5% 93.2% RW Loans $3,507.4 $3,700.0 $192.6 5.5% Tier 1 CTE $418.8 $466.3 $47.5 11.3% Tier 1 RBC $498.8 $546.3 $47.5 9.5% Total RBC $552.0 $603.5 $51.5 9.3%

24

Potential Ongoing Impact on Growth, Earnings and Valuation

20.4% payout ratio is a conservative starting point

PNFP Peer Group* Dividend amount $0.08 per share Dividend amount annualized $0.32 per share Last 12 months of FDEPS $1.57 Dividend payout ratio

• Peer group median
• Peer group average

20.4% 32.5% 31.0%

*: Per SNL data. For peer group members, see slide 56 included as part of supplemental information.

• Continued loan and core deposit growth
• Continued revenue growth
• Continued NPA reductions

25

Management’s Focus for 4Q 2013

Q&A –

Third Quarter 2013 Investor Call

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

26

Supplemental Information

Third Quarter 2013 Investor Call

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

27

Supplemental Information

28

Chart

• Balance Sheet

29

• Asset Quality

39

• Income Statement

47

• Economic Conditions & Other 51
• Pinnacle Financial Partners profile 54

Balance Sheet Supplemental Information

29

Keen focus on core earnings capacity produces record results

30

Source: SNL Financial except for Q3 2013 *Total revenues and noninterest income exclude investment gains and losses

Balance Sheet

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500

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

Millions

Total Loans

$0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00

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

Tangible Common Equity Per Share

Loan portfolio components are within targeted ranges

Balance Sheet

31 Amts. 3Q13 %’s 3Q13 Amts. 2Q13 %’s 2Q13 Amts. 4Q12 %’s 4Q12 Amts. 3Q12 %’s 3Q12 C&D and Land $320.0 8.1% $298.5 7.6% $313.6 8.5% $312.8 8.9% Consumer RE 687.3 17.3% 697.5 17.7% 679.9 18.3% 680.9 19.3% CRE – Owner Occ. 638.2 16.1% 647.1 16.5% 594.4 16.0% 602.7 17.1% CRE – Investment 535.1 13.5% 567.7 14.5% 538.6 14.5% 522.7 14.8% Other RE loans 153.5 3.9% 94.1 2.4% 45.2 1.2% 41.7 1.2% Total real estate 2,334.1 58.8% 2,304.9 58.7% 2,171.7 58.5% 2,160.8 61.3% C&I 1,513.6 38.1% 1,504.1 38.3% 1,446.6 39.0% 1,279.1 36.3% Other loans 121.6 3.1% 116.4 3.0% 93.9 2.5% 85.3 2.4% Total loans $3,969.3 100.0% $3,925.4 100.0% $3,712.2 100.0% $3,525.2 100.0%

(*) as a percentage of total loans

Balance Sheet

32

Exposure to residential land development is limited

Amts. 3Q13 %’s(*) 3Q13 Amts. 2Q13 %’s(*) 2Q13 Amts. 4Q12 %’s(*) 4Q12 Amts. 3Q12 %’s(*) 3Q12 Residential – Spec $24.3 0.6% $21.1 0.5% $ 17.5 0.5% $13.6 0.4% Residential – Custom 29.7 0.8% 22.2 0.6% 16.6 0.4% 14.5 0.4% Residential – Condo 3.6 0.1% 3.8 0.1% 4.7 0.1% 4.5 0.1% Commercial Construct. 124.6 3.1% 118.5 3.0% 123.0 3.3% 115.1 3.3% Land Dev– Residential 65.0 1.6% 52.4 1.3% 57.9 1.6% 62.9 1.8% Land Dev – Commercial 71.5 1.8% 79.2 2.0% 92.2 2.5% 92.1 2.6% Land – Unimproved 1.3 0.0% 1.3 0.0% 1.7 0.0% 10.3 0.3% Total C&D $320.0 8.1% $298.5 7.6% $ 313.6 8.4% $313.1 9.0%

Balance Sheet

Basis: Classification based on NAIC sector as of September 30, 2013

The C&I loan portfolio is highly diversified

33

Accomodation and Food Services, 1.3% Administrative & Support & Waste Management & Remediation Services, 2.0% Arts, Entertainment & Recreation, 0.6% Construction, 2.3% Consumer, 3.3% Educational Services, 0.3% Finance & Insurance, 5.3% Healthcare & Social Assistance, 4.6% Information, 1.3% Manufacturing, 2.7% Mining, Quarrying, & Oil & Gas Extraction, 0.1% Other Services (except Public Administration), 1.5% Professional, Scientific & Technical Services, 2.1% Public Administration, 0.8% Real Estate & Rental & Leasing, 3.0% Retail Trade, 1.5% Transportation & Warehousing, 2.6% Utilities, 0.1% Wholesale Trade, 3.5%

34

Balance Sheet

Bond volumes have stabilized

$1,010 $973 $940 $924 $876 $819 $767 $720 $714 $746 $743

2.10% 2.30% 2.50% 2.70% 2.90% 3.10% 3.30% 3.50% 3.70% $650 $700 $750 $800 $850 $900 $950 $1,000 $1,050

Bond Yields (%) Average Securities (000’s)

Avg Investments Bond Yields

PNFP maintains a conservative bond portfolio

Balance Sheet

35

Portfolio: Sept. 30, 2013

Total Investments $743 million Unrealized Loss $0.1 million QTD Purchases $72.2 million QTD sales, maturities, calls $5.5 million Duration Avg Yield - TE Sep 2013 4.3 % 3.1 % Jun 2013 4.5 % 3.0 %

Dec 2012 3.2 % 3.3 %

Sep 2012 2.1 % 3.1 % 19.2% 1.4% 48.1% 2.4% 4.6% 24.3%

Agency Corporates MBS Asset Backed CMOs Municipals

As of 9/30/2013 Tax Equivalent Book Yield Avg Life (yrs) Agency 2.16% 9.6 Asset Backed 1.42% 2.5 Corporates 4.16% 5.2 CMOs 2.40% 4.3 MBS 2.97% 4.7 Municipals 4.65% 4.6

• Investment portfolio at $743 million, up $17 million vs Q2

– MBS sector at 48% of portfolio – Avg TE yield down linked quarter

• Recent purchases targeting shorter durations
• Investments to Total Assets of 13.8% as of 9/30
• OTTI reported in Q3 2013 earnings represents a loss on 5

bonds sold on October 4, 2013

79% 21% Muni Allocation % General Obligation Bonds Revenue Bonds

The municipal portfolio contains minimal risk

Balance Sheet

36 Location # of Issuances Market Value % Tennessee 66 $ 38,946 20.8% Florida

• 0.0%

California 1 270 0.1% Nevada

• 0.0%

Michigan 10 5,177 2.8% Illinois 19 15,282 8.2% Other – 30 states 180 127,833 68.1% Totals 276 $ 187,508 100.0% As of September 30, 2013 Municipal Bond Portfolio Statistics 3Q13 3Q12 Weighted Average Life 4.6 years 4.3 years % State Agency Holdings 4.95% 5.18% Tax equivalent yield 4.70% 5.60% FMV as % of Cost 102.4% 108.8%

All municipals are “A” rated or better.

Balance Sheet

37

PNFP has limited dependence on non-relationship funding

9/30/2013 Percent 12/31/2012 Percent Core Funding: Transaction accounts 1,908,617 41.20% 1,746,476 41.47% Money Market accounts 1,560,578 33.69% 1,461,173 34.70% Time deposits less than $250,000 433,805 9.36% 467,013 11.09% Total Core Funding 3,903,000 84.25% 3,674,662 87.26% Non-core funding: Relationship based non-core funding: Reciprocal DDA deposits 14,799 0.32%

• 0.00%

Reciprocal MMDA deposits 300,021 6.48% 100,542 2.39% Time deposits Reciprocating time deposits 33,426 0.72% 52,239 1.24% Other time deposits 82,296 1.78% 87,204 2.07% Securities sold under agreements to repurchase 84,032 1.81% 114,667 2.72% Total relationship based non-core funding 514,574 11.11% 354,652 8.42% Wholesale funding: Time deposits greater than $250,000 Public funds

• 0.00%
• 0.00%

Brokered deposits

• 0.00%
• 0.00%

FHLB advances 115,671 2.50% 75,850 1.80% Federal funds purchased

• 0.00%
• 0.00%

Holding Company Loan 16,807 0.36% 23,682 0.56% Subordinated debt 82,476 1.78% 82,476 1.96% Total wholesale funding 214,954 4.64% 182,008 4.32% Total non-core funding 729,528 15.75% 536,660 12.74% Totals 4,632,528 100.00% 4,211,322 100.00%

38

Balance Sheet

8.77% 8.73% 9.15% 8.97% 9.18% 8.75% 9.03% 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Tangible Common Ratio

Elevated tangible common is available for deployment

6.13% 7.58% 10.76% 10.83% 12.41% 12.72% 12.71% 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Return on Tangible Common Equity

Supplemental Information

Asset Quality

39

40

Past due loans remain very low

Asset Quality

(*) > 30 days past due

(000’s)

• Sept. 30,

2013 As a %

• f total

loans

• Sept. 30,

2012 As a %

• f total

loans Past Due Loans (*) Managed by special assets: Nonaccrual loans $11,306 0.28% $23,448 0.67% Accruing loans 7,717 0.19% 8,592 0.24% Managed by relationship managers: Accruing loans 5,315 0.13% 3,705 0.11% Total past due $24,338 0.61% $35,745 1.01%

7.24% 7.18% 8.63% 9.30% 8.64% 7.65% 5.78% 5.04% 4.09% 4.12% 3.78% 3.49% 3.13% 2.84% 2.57% 2.11% 1.80%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0%

Potential Problem loans/Total loans

Percentage of potential problem loans continued to decline

41

Asset Quality

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

42

Asset Quality

Classified assets continued to decline

(in thousands) Balances

• Sept. 30, 2013

Balances

• Dec. 31, 2012

Balances

• Sept. 30, 2012

Classified loans and ORE:

• Substandard commercial loans

$102,169 $ 144,684 $157,483

• Doubtful commercial loans
• 33

384

• Other impaired loans

4,730 2,083 3,579

• 90 days past due and accruing (*)
• 162
• Other real estate

15,522 18,580 21,816

• Other repossessed assets

170 63 50 Total $122,592 $ 165,443 $183,474 Pinnacle Bank classified asset ratio 20.6% 29.4% 33.4%

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

NPLs remain very low

43

Asset Quality

NPLs Expressed as a % of Total Loans within each Category

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

• Const. and land development

0.41% 0.61% 0.57% 1.44% 1.92%

CRE – Owner Occupied

1.45% 0.45% 1.18% 1.36% 1.80%

CRE – Investment

0.19% 0.00% 0.68% 0.21% 0.75%

Total real estate

0.73% 0.48% 0.93% 0.82% 1.46%

C&I

0.18% 0.18% 0.10% 0.21% 0.38%

Total loans

0.50% 0.37% 0.60% 0.61% 1.04%

• Largest ORE balance - $4.1 M

* Excludes costs to sell 44

Asset Quality

ORE is 43.7% of NPAs with resolution in bank’s control

Balances

• Sept. 30, 2013

(dollars in thousands) Fair value as a %

• f book value*

Average Appraisal Age in Months

ORE categories: Developed lots $1,361 144.3% 9.94 Undeveloped land 12,139 180.4% 4.47 Other 2,022 116.2% 3.54 Total ORE $15,522 168.9% 5.27

(*) ORE dispositions > $250,000 from 10/1/12 thru 9/30/13 excluding partial sales 45

Asset Quality

Current OREO valuations are below historical disposition results

ORE Dispositions (*) thru

• Sept. 30, 2013

ORE Balance at

• Sept. 30, 2013

Loan balances prior to charge offs 100.00% 100.00% Charge off’s prior to foreclosure 21.08% 26.57% Balance @ foreclosure 78.92% 73.43% Valuation losses while in ORE 23.78% 32.00% Balance in ORE 55.14% 41.43% Loss (gain) on disposition

• 0.19%

Net realized 55.33%

(1) Market indications are that property will liquidate within 6 months (2) Various properties with reasonable activity or anticipated absorption such that liquidation should be realized within 24 months (3) Other properties likely requiring a speculative investor with longer-term workout potential

46

Asset Quality

OREO disposition plans suggest limited unresolved issues

(dollars in thousands) Balances

• Sept. 30, 2013

Near-term liquidation (1) Active Projects (2) Other Properties (3)

ORE categories: Developed lots $1,361 $147 $1,214 $ - Undeveloped land 12,139 543 9,560 2,036 Other 2,022 965 523 534 Total ORE $15,522 $1,655 $11,297 $2,570

Income Statement Supplemental Information

47

48 $- $30,000 $60,000 $90,000 $120,000 $150,000 $- $500 $1,000 $1,500 $2,000 $2,500 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Gross Loans Sold (000s’) Gain on mortgages sold, net (000’s)

Gross Loans Sold, net Gain on Mortgage Loans Sold, net

Income Statement

Mortgage refinance has slowed

48

Income Statement

49 3Q13 2Q13 1Q13 4Q12 3Q12 Net interest income $44,573 $43,599 $42,758 $42,243 $40,932 Total non-interest income $11,387 $11,326 $11,902 $13,108 $10,430 Less: Securities (gains) losses 1,441 25

• (1,988)

50 Less: Net noncredit related loan losses

• 771
• Non-interest income, excluding the impact of net gains

(losses) on sale of investment securities and noncredit related loan losses $12,828 $12,122 $11,902 $11,120 $10,480 Total non-interest expense $33,323 $30,862 $32,440 $34,851 $33,578 Less: ORE expenses (699) (1,391) (721) (1,365) (2,399) Less: FHLB restructuring charges

• (877)

(2,092)

• Non-Interest expense, excluding ORE expense and FHLB

restructuring charges $32,624 $29,471 $30,842 $31,394 $31,179 Adjusted pre-tax pre-provision income $24,778 $26,250 $23,818 $21,969 $20,233 Efficiency ratio, excl. ORE, FHLB prepayment charges, noncredit related loan losses and securities gains and losses 56.8% 52.9% 56.4% 58.8% 60.6%

PNFP continues to improve operating leverage

Adjusted PTPP expanded 22.5% in 3Q13 over the same period prior year

50

Income Statement

Economic Conditions & Other Supplemental Information

51

Nashville and Knoxville are healthy business markets

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

• Nashville’s GDP grows by 5.4% in ‘12, more than double average growth rate

U.S. Dept. of Commerce, Bureau of Economic Analysis

• Nashville ranks No. 15 among nation’s “Top 25 Strongest Economies”

The Business Journals - On Numbers Economic Index

• Nashville ranks No. 12 among “Top 25 U.S. housing markets” in the country

OwnAmerica

• Nashville No. 6 in “Top 15 Aspirational Cities”

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

• Knoxville ranks No. 9 among “Top 25 U.S. housing markets” in the country

OwnAmerica

• Knoxville sees 2.4% increase in employment over 2012

Business and Economic Research Center at Middle Tennessee State University

Economic Conditions

52 TENNESSEE

• Tennessee business tax climate ranks 15th best among states

Commercial Appeal

Nashville’s commercial vacancy rates indicate a healthy market

*Costar **REIS

Economic Conditions

53 Nashville CRE Vacancy Rates National CRE Vacancy Rates 3Q 2013(*) YE 2012(*) YE 2011 (*) YE 2010 (*) YE 2009 (**) YE 2008 (**) 3Q 2013 (*) Industrial / Warehouse 9.1% 9.1% 10.1% 10.2% 10.6% 9.6% 8.3% Multifamily** 7.9% 7.0% 6.6% 6.7% 9.6% 7.6% 6.1% Retail 7.4% 7.0% 7.3% 6.7% 8.1% 6.3% 6.7% Office 7.8% 8.5% 9.7% 10.6% 12.7% 10.5% 11.6%

Retail 15.1% Office 6.6%

Warehouse

8.2% Own/Occ 48.1% Other 22.0%

PNFP CRE Portfolio*

*: As of 9/30/2013

Pinnacle Financial Partners Profile Supplemental Information

54

PNFP Profile

55

Headquarters: Nashville, TN Founded: 2000 Total assets: $ 5.391 Billion (9/30/13) Shareholders’ equity: $ 712.2 Million (9/30/13) Offices: 29 in 8 Middle-TN counties 4 in Knox County

• Avg. daily trading volume **: 110,261 shares

% Institutional ownership: 69.1% (9/30/13)

PNFP operates in two great banking markets

**: 50 day average per nasdaq.com

PNFP Profile

56

Name Title Age Years in Banking Industry Years at Pinnacle

• M. Terry Turner

President and Chief Executive Officer 59 35 13 Robert A. McCabe, Jr. Chairman of the Board 62 37 13 Hugh M. Queener Chief Administrative Officer 57 26 13 Harold R. Carpenter, Jr. Chief Financial Officer 55 20 13

• J. Harvey White

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

• D. Kim Jenny

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

• J. Edward White

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

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

PNFP has an extraordinarily experienced management team

PNFP Profile

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

(COLB)

• CVB Financial Corp. (CVBF)
• First Busey Corporation (BUSE)
• First Financial Bancorp. (FFBC)
• Flushing Financial Corp (FFIC)
• First Midwest Bancorp, Inc. (FMBI)
• Independent Bank Corp. (INDB)
• MB Financial (MBFI)
• Old National Bancorp (ONB)
• PacWest Bancorp (PACW)
• Sandy Springs Bancorp, Inc. (SASR)
• SCBT Financial Corp (SCBT)
• Taylor Capital Group, Inc. (TAYC)
• Texas Capital Bancshares, Inc. (TCBI)
• TowneBank (TOWN)
• Union First Market Bkshs Co (UBSH)
• United Bankshares, Inc. (UBSI)
• Westamerica Bancorporation

(WABC)

• Western Alliance Bancorporation

(WAL)

57

McLagan Peer Group

58

PNFP Profile

Engaged associates drive market-best client satisfaction

60% 70% 80% 90% 100% 1.00 2.00 3.00 4.00 5.00

Associate Engagement Scores Customer Satisfaction Scores

Customer Satisfaction Scores Associate engagement survey positive responses

Source: Annual Associate Survey

PNFP Profile

59 Nashville-Davidson-Rutherford MSA Knoxville MSA

Top 10 Market Share Rank Holding Company Market Share 6/30/13 Market Share 6/30/00 Chang e in Share Top 10 Market Share Rank Holding Company Market Share 6/30/13 Market Share 6/30/07 Change in Share 4 Pinnacle Financial Partners 9.1% 1.7% 7.4% 6 Pinnacle Financial Partners 3.4% 0.0% 3.4% 6 US Bank 3.6% 0.3% 3.2% 5 Branch Banking and Trust 9.9% 6.7% 3.2% 10 CapStar Bank 2.3% 0.0% 2.3% 8 Clayton Bank and Trust 2.1% 1.2% 0.9% 5 First Horizon 6.9% 4.8% 2.1% 1 First Horizon 21.0% 20.8% 0.2% 1 Bank of America 16.6% 15.1% 1.5% 9 Citizens of Blount County 2.1% 2.2%

• 0.1%

7 Wilson County B & T 3.5% 2.5% 1.0% 10 Bank of American 1.9% 2.2%

• 0.3%

8 Fifth Third 3.2% 2.4% 0.8% 4 Home Federal Bank of TN 11.7% 12.4%

• 0.7%

9 Wells Fargo 2.6% 2.2% 0.4% 7 First National 2.3% 3.2%

• 0.9%

3 SunTrust 12.3% 19.7%

• 7.4%

2 SunTrust 16.9% 18.1%

• 1.2%

2 Regions 15.9% 30.5%

• 14.6%

3 Regions 13.7% 17.8%

• 4.1%

Other 24.0% 20.8% 3.2% Other 15.1% 15.4%

• 0.3%

Total 100% 100% Total 100% 100%

PNFP has proven experience in market share take-away

Source: SNL; FDIC Summary of Deposits 2013; Amounts reflect aggregation of previously merged banks.

PNFP Profile

60

MSA Market Rank Number

• f

Branches Company Deposits in Market ($000) Deposit Market Share (%) Percent of Franchise (%) Total Population 2012 (Actual) Population Change 2010-2012 (%) Projected Population Change 2012-2017 (%) Median HH Income 2012 ($) Projected HH Income Change 2012-2017 (%) Nashville-Davidson- Murfreesboro-Franklin, TN 4 28 3,611,329 8.85 87.92 1,635,341 2.86 7.64 49,741 11.20 Knoxville, TN 6 4 446,457 4.65 10.87 709,798 1.69 4.33 42,595 18.90 Shelbyville, TN 1 1 49,936 8.58 1.22 45,655 1.32 4.02 36,770 11.53 MSA Totals 100.00 2,390,794

Source: SNL Deposit data from the June 30, 2013 FDIC Summary of Deposits Weighted Average is calculated as the sum of (Percent of State/National Franchise * demographic item) within each market. Banks, Thrifts, and Savings Banks included (Retail Branches Only) Demographic data is provided by ESRI based primarily on US Census data. For non-census year data, ESRI uses samples and projections to estimate the demographic data. SNL performs calculations on the underlying data provided by ESRI for some of the data presented on this page.

Third Quarter 2013 Investor Call

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