Third Quarter 2016 Investor Call M. Terry Turner, President and CEO - - PowerPoint PPT Presentation

Third Quarter 2016 Investor Call

• M. Terry Turner, President and CEO

Harold R. Carpenter, EVP and CFO October 19, 2016

Forward Looking Statements

This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those identified by the words “may,” “will,” “should,” “could,” “anticipate,” “believe,” “continue,” “estimate,” “expect,” “forecast,” “intend,” “plan,” “potential,” or “project” and similar expressions. 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:

• deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses;
• continuation of the historically low short-term interest rate environment;
• 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;
• changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments;
• effectiveness of Pinnacle Financial’s asset management activities in improving, resolving or liquidating lower-quality assets;
• Increased competition with other financial institutions;
• greater than anticipated adverse conditions in the national or local economies including the Nashville-Davidson-Murfreesboro-Franklin MSA, the Knoxville MSA, the Chattanooga, TN-GA MSA and the

Memphis, TN-MS-AR MSA, particularly in commercial and residential real estate markets;

• rapid fluctuations or unanticipated changes in interest rates on loans or deposits;
• the results of regulatory examinations;
• the ability to retain large, uninsured deposits;
• a merger or acquisition;
• risks of expansion into new geographic or product markets;
• any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including intangible assets;
• 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 or otherwise to attract customers from other

financial institutions;

• further deterioration in the valuation of other real estate owned and increased expenses associated therewith;
• Inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies and required capital maintenance levels;
• risks associated with litigation, including the applicability of insurance coverage;
• the risk that the cost savings and any revenue synergies from our recent mergers may not be realized or take longer than anticipated to be realized;
• disruption from the Avenue merger with customers, suppliers or employee relationships;
• the risk of successful integration of the businesses we have recently acquired with ours;
• the amount of the costs, fees, expenses and charges related to the Avenue merger;
• the risk of adverse reaction of Pinnacle Bank’s and Avenue's customers to the Avenue merger;
• the risk that the integration of the operations of the companies we have recently acquired with Pinnacle Bank’s will be materially delayed or will be more costly or difficult than expected;
• approval of the declaration of any dividend by Pinnacle Financial’s board of directors;
• the vulnerability of Pinnacle Bank’s network and online banking portals to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other

security breaches;

• the possibility of increased compliance costs as a result of increased regulatory oversight, including oversight of companies in which Pinnacle Financial or Pinnacle Bank have significant investments, and

the development of additional banking products for Pinnacle Bank’s corporate and consumer clients;

• 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 the terms of our agreement with them;

• the possibility that the incremental cost and/or decreased revenues associated with exceeding $10 billion in assets will exceed current estimates; and
• changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, including regulatory or legislative developments.

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 or furnished to 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 release which speak only as of the date hereof, whether as a result of new information, future events or otherwise.

Safe Harbor Statements

Non-GAAP Financial Matters

This presentation also contains certain non-GAAP financial measures, including, without limitation, revenues, net income, earnings per diluted share, efficiency ratio, noninterest expense and the ratio of noninterest expense to average assets and noninterest expense to the sum of net interest income and noninterest income, in each case excluding the impact of expenses related to other real estate owned, gain or loss on sale of investments, FHLB prepayments and other matters for the accounting periods presented. This presentation also includes non-GAAP financial measures which exclude expenses associated with Pinnacle Bank’s mergers with CapitalMark Bank & Trust and Magna Bank as well as Pinnacle Financial’s investments in BHG and Pinnacle Financial’s merger with Avenue. This presentation may also contain certain other non-GAAP capital ratios and performance

• measures. These non-GAAP financial measures may also exclude the impact of goodwill and core deposit intangibles associated with Pinnacle Financial’s acquisition of Avenue

Financial Holdings, Inc. which Pinnacle Financial acquired on July 1, 2016, Pinnacle Financial’s acquisition of Avenue Financial Holdings, Inc. which Pinnacle Financial acquired on July 1, 2016, Magna Bank which Pinnacle Bank acquired on September 1, 2015, CapitalMark Bank & Trust which Pinnacle Bank acquired on July 31, 2015, Mid-America Bancshares, Inc. which Pinnacle Financial acquired on November 30, 2007, Cavalry Bancorp, Inc., which Pinnacle Financial acquired on March 15, 2006 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 their non-GAAP financial information to compare Pinnacle Financial’s operating performance for 2016 versus the comparable periods in 2015 and to internally prepared projections.

Safe Harbor Statements

0.21% 0.15% 0.28% 0.35%

NCOs

$57,401 $62,396 $83,469 $118,327

Total Revenues

12.73% 13.69% 14.49% 14.47%

ROTCE

0.89% 0.78% 0.57% 0.41%

NPA/ Loans & OREO

3Q16 Summary GAAP Results

Balance Sheet Growth Earnings Growth Asset Quality

Execution of fundamentals fueled exceptional growth in key valuation drivers

$4,334 $4,662 $6,601 $8,670

Total Deposits

(millions)

$3,969 $4,421 $6,336 $8,241

Total Loans

(millions)

$0.42 $0.52 $0.62 $0.71

FD EPS

$20.27 $21.93 $27.80 $31.97

Book Value per Share

20.6% 20.0% 17.1% 15.2%

Classified Asset Ratio

0.21% 0.15% 0.28% 0.35%

NCOs

12.71% 13.69% 15.31% 16.01%

ROTCE*

$0.42 $0.52 $0.66 $0.78

FD EPS*

3Q16 Summary Non-GAAP Results

Balance Sheet Growth Earnings Growth Asset Quality

Up 30.1% yr/yr Up 31.0% yr/yr Up 41.8% yr/yr

Execution of fundamentals fueled exceptional growth in key valuation drivers

Up 15.2% yr/yr Up 18.2% yr/yr $3,969 $4,421 $6,336 $8,241

Total Loans

(millions)

$57,401 $62,396 $83,469 $118,327

Total Revenues

(excl. securities gains & losses)

$13.22 $14.98 $17.09 $19.69

Tangible Book Value per Share

$3,903 $4,261 $5,890 $7,715

Total Core Deposits

(millions)

20.6% 20.0% 17.1% 15.2%

Classified Asset Ratio

0.89% 0.78% 0.57% 0.41%

NPA/ Loans & OREO

*: excluding tax effected merger related charges

Previously outlined growth initiatives are moving forward

• 1. Aggressive hiring ahead of schedule – 41 revenue producers

through three quarters, compared to 36 all of last year.

• 2. CapitalMark, Magna and Avenue mergers – Highly successful

integrations completed. Synergy cases fully deployed.

3Q16 Summary Results

6

7 $1.31 $2.58

$- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $- $20 $40 $60 $80 $100 $120

Revenues per diluted WAVG share Total Revenues

(000's)

Fee income NII Total revenue per share

Loan, Deposit and Fee Growth Produce Operating Leverage

Steady growth in both total revenues and revenues per share

8

Linked quarter loan volume growth remains strong

Loan, Deposit and Fee Growth Produce Operating Leverage

4.88% 4.43%

1.00% 2.00% 3.00% 4.00% 5.00% $- $2,000 $4,000 $6,000 $8,000

Loan Yields Average Loans

(millions)

• Avg. Loans

Loan Yields

100%/300% Test

% of Risk-based Capital 9/30/16 12/31/15 12/31/14

C&D and other loans required for 100% test 87.9% 87.8% 56.4% Other loan categories required for 300% test 177.6% 163.0% 132.8% All loans required for 300% test 265.5% 250.8% 189.2%

Loan, Deposit and Fee Growth Produce Operating Leverage

Pinnacle operates within regulatory CRE guidelines

10

Average deposit balances grew 20.3% organically

Loan, Deposit and Fee Growth Produce Operating Leverage

1.01% 0.31%

0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% $2,500 $3,500 $4,500 $5,500 $6,500 $7,500 $8,500

• Avg. Deposits

(millions)

EOP Deposits Cost of Deposits

11

Fee businesses produce another solid quarter

3Q16 2Q16 1Q16 4Q15 3Q15 Service charges $3,778 $3,430 $3,443 $3,500 $3,258 Investment services 2,592 2,500 2,346 2,787 2,526 Insurance commissions 1,233 1,193 1,705 1,103 1,103 Gain on mortgage loans sold, net 5,097 4,221 3,568 2,181 1,895 Trust fees 1,523 1,492 1,581 1,482 1,437 Income from equity method investment 8,475 9,644 5,148 7,839 5,285 Other: Securities gains (losses)

• (10)
• Interchange and other consumer fees

6,464 5,768 5,819 5,558 4,964 Bank-owned life insurance 955 878 763 714 661 Loan swap fees 859 1,780 731 604 398 Other 716 1,806 752 850 (117) Total noninterest income $31,692 $32,712 $25,856 $26,608 $21,410 Total Assets (Quarterly Average) $10,883,546 $9,305,941 $8,851,978 $8,565,341 $7,514,633 Noninterest income/Average Assets 1.16% 1.41% 1.17% 1.23% 1.13%

Loan, Deposit and Fee Growth Produce Operating Leverage

12

Operating leverage improves quarter over quarter

3Q16 2Q16 1Q16 4Q15 3Q15 Salaries and benefits $36,053 $34,254 $32,517 $30,878 $27,746 Equipment and occupancy 9,401 8,312 8,130 8,385 6,933 Other real estate owned 17 222 112 99 (686) Marketing and business development 1,350 1,538 1,263 1,465 1,252 Supplies and postage 922 1,050 957 1,052 795 Intangible amortization 1,425 847 873 917 602 Merger related expense 5,672 980 1,830 2,489 2,249 Other expenses 8,686 8,727 8,382 6,906 6,216 Total noninterest expense $63,526 $55,931 $54,064 $52,191 $45,107 Efficiency ratio 53.7% 51.9% 54.2% 53.2% 54.0% Expense/Total Average Assets 2.32% 2.42% 2.45% 2.42% 2.38% Core noninterest expense ** $57,837 $54,729 $52,122 $49,603 $43,544 Core efficiency ratio 48.9% 50.8% 52.2% 50.6% 52.2% Core Noninterest Expense**/Total Average Assets 2.11% 2.37% 2.37% 2.30% 2.30%

** Excludes the impact of OREO expense, FHLB prepayment charges and merger related expenses

Loan, Deposit and Fee Growth Produce Operating Leverage

Amounts (000’s)

2Q16 AVNU noninterest expense (x-merger charges) $6,788 Anticipated synergy – 40% $2,715 Pro forma expense to be added to PNFP run rate $4,073 PNFP 2Q16 expense base (x-merger charges) $54,729 PNFP 3Q16 expense base (x-merger charges) $57,837 Net increase $3,108

Significant events in 3Q16 regarding AVNU synergy case:

• Three branch offices were closed and consolidated into nearby facilities
• 26 jobs were eliminated during 3Q16, approximately 8 jobs are scheduled to be eliminated in 4Q16
• Technology conversion occurred during Labor Day weekend

Loan, Deposit and Fee Growth Produce Operating Leverage

Realization of targeted synergies provides further leverage

14

Pinnacle’s newest markets experience strong growth

Market At 09/30/16 At 12/31/15 Net % change (annualized)

Loans (000’s) Memphis $684 $458 66.0% Chattanooga $756 $708 9.0% Core Deposits (000’s) Memphis $606 $385 76.5% Chattanooga $548 $505 11.4% Revenue Producers Memphis 48 44 12.1% Chattanooga 32 26 30.8%

Loan, Deposit and Fee Growth Produce Operating Leverage

2016 – 2019 Strategic Plan Update

• 1. Review accomplishments
• 2. Explore opportunities particularly where advantaged
• 3. Develop tactics for continued organic growth long-term
• 4. Validate long-term operating metrics/financial model
• 5. Expansion plans in Tennessee
• 6. Explore expansion into other high-growth markets in the

Southeast

15

PNFP recently completed its annual update of its 3-year plan

“Lower longer” means modest changes to PNFP’s profit model

Metric 1Q12 1Q14 2Q15 1Q16 Future

Net interest margin 3.70% to 3.90% 3.70% to 3.90% 3.60% to 3.80% 3.60% to 3.80% 3.40% to 3.60% Net charge-off’s 0.20% to 0.30% 0.20% to 0.30% 0.20% to 0.35% 0.20% to 0.35% 0.20% to 0.35% Noninterest income / Average assets 0.70% to 0.90% 0.80% to 1.00% 0.90% to 1.10% 1.10% to 1.30% 1.10% to 1.30% Noninterest expense / Average assets 2.10% to 2.30% 2.10% to 2.30% 2.10% to 2.30% 2.10% to 2.30% 2.00% to 2.20% Return on Average Assets 1.10% to 1.30% 1.20% to 1.40% 1.20% to 1.40% 1.20% to 1.40% 1.20% to 1.40%

PNFP Remains Focused on Top Quartile Profitability

* Excludes the impact of OREO expense, FHLB prepayment charges and merger-related charges

16

PNFP Remains Focused on Tennessee’s Urban Markets

17

PNFP is targeting organic growth to $15 billion by 2020 in Tennessee

$8.0 $10.0 $12.0 $14.0 $16.0 2016 2017 2018 2019 2020 Assets (in billions)

$15 billion

75th Percentile Total Assets ROATCE ROAA Price/ TBV Price/ LTM EPS > $25bn 12.33% 1.04% $176.47 $13.64 $20 - $25bn 12.30% 1.14% $198.92 $16.62

$15 - $20 bn 15.06% 1.15% $228.67 $17.03 $10 - $15bn 12.73% 1.12% $173.60 $14.39

$5 - $10bn 14.46% 1.20% $205.30 $16.11 $1 - $5bn 12.08% 1.09% $150.05 $14.60 $500mm - $1bn 10.79% 1.02% $118.31 $13.43 < $500mm 8.94% 0.96% $103.45 $13.46

PNFP Remains Focused on Shareholder Value

18

Profitability and valuation appear optimized between $15 and $20 billion

Source: SNL Financial

PNFP Remains Focused on Shareholder Value

19

Southeastern markets afford extraordinary value creation opportunity

20

PNFP Remains Focused on Shareholder Value

PNFP has a proven track record with de novo starts

Pinnacle Regional A Regional B Regional C National A 0% 5% 10% 15% 20% 25% 35% 45% 55% 65% 75% 85% 95% Client Penetration Excellent Client Satisfaction

Nashville

Pinnacle Regional A Regional B Regional C National A 0% 5% 10% 15% 20% 25% 35% 45% 55% 65% 75% 85% Client Penetration Excellent Client Satisfaction

Knoxville

Source: 2016 Greenwich Associates Market Tracking Program Q2 2016 – Pinnacle Financial (Nashville/Knoxville - $5-500MM)

De novo start - 2000 De novo start - 2007

21

PNFP Remains Focused on Shareholder Value

PNFP has a proven track record as a disciplined acquirer/integrater

• 3 high quality acquisitions announced and closed in 18 months
• All management and virtually all revenue producers still on board
• Cost takeout targets met or exceeded
• Near flawless system integrations
• Strong cultural integration evidenced by high associate engagement

“One of the things that’s interesting is that it appears that Pinnacle has developed an organizational capability in terms of its ability to identify potential partners, acquire them, and integrate them into the Pinnacle culture. The ability to do that, do that in short order, do it efficiently and effectively and continue to keep operations running at the very high level they do, is nothing short of remarkable.”

• Rich Boyer,

Senior Consultant & Founding Partner Modern Think

De novo Sizing

• Nashville, Knoxville experience

– Approximately $2.0 million in cumulative losses prior to break-even – Approximately 12-18 months to break- even

• Key management with capacity to

build $2.0 billion bank – no LPO

• 15-20 associates in initial hiring

phase M&A Criteria

• At least $1 billion in assets
• Commercial thrust
• Management continuation
• Sustainable core profitability
• Capacity to achieve mass in market
• >5% EPS accretion in first full year

22

PNFP Remains Focused on Shareholder Value

Opportunities likely exist for de novo or merger related expansion

PNFP Remains Focused on Shareholder Value

23

2016-2019 Strategic Plan Summary

• 1. Continuation of current high growth, high profit plan
• 2. Explore expansion to other high growth southern markets

Q&A –

Third Quarter 2016 Investor Call

Supplemental Information

25

Chart

• Balance Sheet

26

• Asset Quality

35

• Income Statement

39

• Pinnacle Financial Partners profile 47
• Economic and Market Conditions 53

Balance Sheet Supplemental Information

26

Loan portfolio is well diversified

Balance Sheet

27 Amts. 3Q16 %’s(*) 3Q16 Amts. 2Q16 %’s(*) 2Q16

Amts. 3Q15 %’s(*) 3Q15

Amts. 3Q14 %’s 3Q14 C&D and Land $930.2 11.3% $816.7 11.5% $674.9 10.7% $322.1 7.3% Consumer RE 1,186.0 14.4% 1,068.6 15.1% 1,044.3 16.5% 706.8 16.0% CRE – Owner Occ. 1,256.2 15.2% 1,120.1 15.8% 1,124.9 17.8% 728.1 16.5% CRE – Investment 1,436.4 17.4% 1,066.6 15.0% 842.1 13.3% 582.4 13.2% Other RE loans 299.4 3.7% 280.5 4.0% 225.2 3.4% 168.4 3.8% Total real estate 5,108.2 62.0% 4,352.5 61.4% 3,911.4 61.7% 2,507.8 56.8% C&I 2,873.6 34.9% 2,492.0 35.1% 2,178.5 34.4% 1,724.1 39.0% Other loans 259.2 3.1% 246.9 3.5% 246.0 3.9% 189.4 4.2% Total loans $8,241.0 100.0% $7,091.4 100.0% $6,335.9 100.0% $4,421.3 100.0%

(*) as a percentage of total loans

(*) as a percentage of total loans

Balance Sheet

28

Construction portfolio reflects disciplined growth

Amts. 3Q16 %’s(*) 3Q16 Amts. 2Q16 %’s(*) 2Q16 Amts. 3Q15 %’s(*) 3Q15 Amts. 3Q14 %’s(*) 3Q14 Residential – Spec $182.2 2.2% $128.9 1.8% $102.1 1.6% $39.3 0.9% Residential – Custom 99.4 1.2% 92.6 1.3% 44.5 0.7% 31.5 0.7% Residential – Condo 2.8 0.0% 11.3 0.2% 3.5 0.0% 0.1 0.0% Commercial Construct. 373.8 4.5% 319.5 4.5% 352.1 5.6% 134.1 3.0% Land Dev– Residential 103.3 1.3% 80.3 1.1% 72.6 1.2% 61.1 1.4% Land Dev – Commercial 164.8 2.0% 181.8 2.6% 99.1 1.6% 55.1 1.3% Land – Unimproved 3.9 0.1% 2.3 0.0% 1.0 0.0% 0.9 0.0% Total C&D $930.2 11.3% $816.7 11.5% $674.9 10.7% $322.1 7.3%

Balance Sheet

The C&I loan portfolio is highly diversified

29 NAICS Sector Description 3Q16 2Q16 3Q15 Accommodation and Food Services 4.05% 3.91% 4.61%

• Admin. and Support and Waste Mgmt &

Remediation 2.84% 2.83% 2.91% Agriculture, Forestry, Fishing and Hunting 0.10% 0.11% 0.14% Arts, Entertainment, and Recreation 1.19% 1.13% 1.40% Construction 4.39% 4.51% 4.82% Consumer 7.18% 7.01% 7.68% Educational Services 1.90% 1.73% 1.68% Finance and Insurance 10.46% 10.03% 10.28% Health Care and Social Assistance 13.44% 13.56% 13.74% Information 3.45% 2.05% 2.39% Management of Companies and Enterprises 0.64% 0.22% 0.46% Manufacturing 7.05% 7.36% 8.67% Mining, Quarrying, and Oil and Gas Extraction 0.01% 0.01% 0.02% Other Services (except Public Administration) 2.76% 2.29% 2.31% Professional, Scientific, and Technical Services 3.41% 3.40% 4.31% Public Administration 2.81% 3.22% 3.67% Real Estate and Rental and Leasing 10.00% 11.59% 9.87% Retail Trade 8.08% 8.13% 6.49% Transportation and Warehousing 6.90% 8.03% 7.43% Utilities 0.56% 0.05% 0.07% Wholesale Trade 8.78% 8.83% 7.07% Total C&I Portfolio 100.00% 100.00% 100.00%

Balance Sheet

30

PNFP remains focused on relationship funding

9/30/2016 Percent 9/30/2015 Percent Core Funding: Non-interest bearing deposits 2,369,225 25.21% 1,876,910 25.51% Interest-bearing deposits 1,550,457 16.50% 1,275,497 17.34% Money Market accounts 3,280,342 34.90% 2,320,094 31.54% Time deposits less than $250,000 514,528 5.47% 417,812 5.68% Total Core Funding 7,714,552 82.08% 5,890,312 80.07% Relationship based non-core funding: Reciprocal NOW deposits 24,903 0.26% 17,751 0.24% Reciprocal MMDA deposits 554,428 5.90% 371,125 5.04% Time deposits Reciprocal time deposits 60,779 0.65% 82,553 1.12% Other time deposits 169,658 1.81% 231,650 3.15% Securities sold under agreements to repurchase 84,317 0.90% 68,077 0.93% Total relationship based non-core funding 894,086 9.51% 771,155 10.48% Wholesale funding: Time deposits greater than $250,000 Public funds

• 0.00%
• 0.00%

Brokered deposits 145,826 1.55% 7,288 0.10% FHLB advances 382,338 4.07% 545,330 7.41% Federal funds purchased

• 0.00%
• 0.00%

Sub Debt and other funding 262,507 2.79% 142,476 1.94% Total wholesale funding 790,671 8.41% 695,094 9.45% Total non-core funding 1,684,756 17.92% 1,466,249 19.93% Totals 9,399,308 100.00% 7,356,562 100.00%

$957 $959 $1,000 $975 $1,009 $1,054 $1,055 $1,138 $1,105 $1,166 $1,190 $1,216 $1,247 $1,349 $1,375 $1,376 $1,440 $1,538 $2,087 $2,084 $2,146 $2,252 $2,784 $747 $715 $685 $779 $808 $787 $815 $865 $941 $926 $989 $1,024 $1,028 $1,046 $1,131 $1,177 $1,221 $1,372 $2,407 $2,015 $2,117 $2,330 $2,734

56.15% 50.45%

10% 20% 30% 40% 50% 60% 70% $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000

Funded % Total Commitments

(millions)

Net active balance Unfunded Commitments Funded %

Unfunded line commitments hold potential for significant loan growth

31

Note: Excludes HELOCS and credit cards

Balance Sheet

32

Balance Sheet

The securities book is maintained at a minimal level

3.58% 2.29% 20.75% 11.33% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% Bond Yields % of Avg. Assets

Conservative bond portfolio

Balance Sheet

33

Portfolio: September 30, 2016 Total Investments $1.251 billion Unrealized Gain (Loss) $ 18.6 million QTD Purchases $ 177.7 million QTD Sales $ 96.1 million Duration Avg Yield – TE 3Q16 2.8% 2.3% 2Q16 2.4% 2.5% 1Q16 2.7% 2.6% 4Q15 3.0% 2.5% 3Q15 2.8% 2.6% 2Q15 2.9% 2.6% 0.4% 0.6% 55.5% 7.0% 18.0% 18.5%

Agency Corporates MBS Asset Backed CMOs Municipals

As of 09/30/2016 Book Yield Avg Life (yrs) Agency 2.17% 0.2 Asset Backed 1.63% 5.9 Corporates 3.63% 6.0 CMOs 1.73% 2.8 MBS 2.07% 4.2 Municipals 4.06% 3.7 Total 2.29% 4.1

• Investment portfolio at $1.251 billion, up $113

million vs Q2 due primarily to AVNU

• Duration stable at low levels
• Investments to Total Assets of 11.4%

83% 17% Muni Allocation % General Obligation Bonds Revenue Bonds

The municipal portfolio contains minimal risk

Balance Sheet

34 Location # of Issuances Market Value

(in ‘000s)

% Tennessee 77 44,397 18.7 Michigan 12 5,431 2.3 Illinois 21 16,118 5.7 Pennsylvania 34 22,300 9.4 Kentucky 8 7,158 3.0 Other – 30 states 215 142,309 60.9 Totals 367 237,713 100.0 As of September 30, 2016 Municipal Bond Portfolio Statistics 3Q16 3Q15 Weighted Average Life 3.7 years 3.7 years Tax equivalent yield 4.06% 4.68% FMV as % of Cost 103.2% 103.7%

All municipals are “A” rated or better.

Asset Quality Supplemental Information

35

36

Past due loans remain very low

Asset Quality

(*) > 30 days past due (**) includes purchase credit impaired loans

(000’s)

• Sept. 30,

2016 As a % of total loans June 30, 2016 As a % of total loans

• Sept. 30,

2015 As a %

• f total

loans Past Due Loans (*) Nonaccrual loans** $8,822 0.11% $9,689 0.14% $8,349 0.13% Accruing loans 19,929 0.24% 23,731 0.33% 21,830 0.34% Total past due $28,751 0.35% $33,420 0.47% $30,179 0.47%

37

NPLs and loans >90 days past due & accruing remain very low

Asset Quality

(000’s) PNFP NPLs and >90 days

• Sept. 30,

2016 As a % of total loans June 30, 2016 As a % of total loans

• Sept. 30,

2015 As a % of total loans

• Const. and land development

$6,355 0.08% $7,112 0.10% $8,837 0.14% Consumer RE 8,429 0.10% 8,062 0.11% 10,397 0.16% CRE – Owner Occupied 4,374 0.05% 4,663 0.07% 4,880 0.08% CRE – Investment 673 0.01% 521 0.01% 2,576 0.04% Total real estate 19,831 0.24% 20,358 0.29% 26,690 0.42% C&I 8,791 0.11% 11,918 0.17% 1,121 0.02% Other 1,958 0.02% 3,133 0.04% 6,037 0.10% Total loans $30,580 0.37% $35,409 0.50% $33,848 0.54% NPLs Expressed as a % of Total Loans within each Category

38

Asset Quality

Classified assets remain low

(in thousands) Balances

• Sept. 30, 2016

Balances June 30, 2016 Balances

• Dec. 31, 2015

Classified loans and ORE:

• Substandard commercial loans

$123,952 $132,579 $116,088

• Doubtful commercial loans

87 87 18

• Other impaired loans

9,933 11,398 19,402

• 90 days past due and accruing (*)

2,093 1,623 1,768

• Other real estate

5,589 5,006 5,083

• Other repossessed assets

67 177 1,906 Total $141,721 $150,870 $144,265 Pinnacle Bank classified asset ratio 15.2% 19.3% 18.7%

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

Income Statement Supplemental Information

39

40

• -- : Reflects targets resulting from the annual corporate strategic planning process for the then current period.

PNFP has built a high growth, high profit model – GAAP metrics

Income Statement

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

Net Chargeoff Ratio

0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60%

ROAA

0.70% 0.80% 0.90% 1.00% 1.10% 1.20% 1.30% 1.40%

Noninterest Income / Average Assets (1)

2.00% 2.20% 2.40% 2.60% 2.80% 3.00% 3.20% Noninterest Expense / Average Assets (2) 3.50% 3.55% 3.60% 3.65% 3.70% 3.75% 3.80% 3.85% 3.90% 3.95%

Net Interest Margin

41

(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, FHLB prepayment charges and merger-related charges. Noninterest expense for 2Q13 includes the impact of the reversal of a $2.0 million allowance for off-balance sheet commitments

• -- : Reflects targets resulting from the annual corporate strategic planning process for the then current period.

PNFP has built a high growth, high profit model – Non-GAAP metrics

Income Statement

0.65% 1.10% 1.21% 1.44% 1.36%

0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60%

ROAA

3.76% 3.77% 3.71% 3.65% 3.72% 3.60% 3.50% 3.55% 3.60% 3.65% 3.70% 3.75% 3.80% 3.85% 3.90% 3.95%

Net Interest Margin

2.56% 2.27% 2.38% 2.31% 2.37% 2.11% 2.00% 2.10% 2.20% 2.30% 2.40% 2.50% 2.60% 2.70%

Noninterest Expense / Average Assets (2)

0.36% 0.36% 0.08% 0.14% 0.38% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% 0.45% 0.50%

Net Chargeoff Ratio

0.81% 0.93% 0.89% 1.24% 1.41% 1.16% 0.70% 0.80% 0.90% 1.00% 1.10% 1.20% 1.30% 1.40%

Noninterest Income / Average Assets (1)

Income Statement

Mortgage volumes experience growth in “purchase money” transactions

42 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 25,000 50,000 75,000 100,000 125,000 150,000 175,000 200,000 225,000

Purchase Money Refinance Gross fees as a % of loans originated

Income Statement

43

3Q16 2Q16 1Q16 4Q15 3Q15 Net interest income $86,635 $75,044 $73,902 $71,475 $62,059 Total noninterest income $31,692 $32,713 $25,856 $26,608 $21,410 Less: Securities (gains) losses

• 10
• Noninterest income, excluding the impact of net gains (losses) on sale of

investment securities $31,692 $32,713 $25,856 $26,618 $21,410 Total noninterest expense $63,526 $55,931 $54,064 $52,191 $45,107 Less: ORE expenses 17 222 112 99 (686) FHLB prepayment charges

• Merger-related charges

5,672 980 1,830 2,489 2,249 Noninterest expense, excluding ORE expense, FHLB prepayment charges and merger-related charges $57,837 $54,729 $52,122 $49,603 $43,544 Adjusted pre-tax pre-provision income $60,490 $53,028 $47,636 $48,490 $39,925 Efficiency ratio 53.7% 51.9% 54.2% 53.2% 54.0% Adjustment due to securities gains and losses, ORE expense, FHLB prepayment charges and merger-related charges (4.8%) (1.1%) (1.9%) (2.6%) (1.9%) Efficiency ratio** 48.9% 50.8% 52.2% 50.6% 52.2%

Reconciliation of Non-GAAP measures

**: Excluding ORE expense, FHLB prepayment charges, merger-related charges and securities gains and losses

Income Statement

44

3Q16 2Q16 1Q16 4Q15 3Q15 Total non-interest income $31,692 $32,713 $25,856 $26,608 $21,410 Less: Securities (gains) losses

• 10
• Noninterest income, excluding the impact of net gains and losses on sale of investment securities

$31,692 $32,713 $25,856 $26,618 $21,410 Total noninterest expense $63,526 $55,931 $54,064 $52,191 $45,107 Less: ORE expenses 17 222 112 99 (686) FHLB prepayment charges

• Merger-related charges

5,672 980 1,830 2,489 2,249 Noninterest expense, excluding ORE expense, FHLB prepayment charges and merger-related charges $57,837 $54,728 $52,122 $49,603 $43,544 Adjusted pre-tax pre-provision income $60,490 $53,028 $47,636 $48,490 $39,925 Total Assets (Quarterly Average) $10,883,546 $9,305,941 $8,851,978 $8,565,341 $7,514,633 Noninterest income/ Average assets 1.16% 1.41% 1.17% 1.23% 1.13% Adjustment due to gains and losses on sale of investment securities

• Noninterest income, excluding the impact of net gains and losses on sale of investment

securities/Average Assets 1.16% 1.41% 1.17% 1.23% 1.13% Noninterest expense/ Average assets 2.32% 2.42% 2.46% 2.42% 2.38% Adjustment due to ORE expense, FHLB prepayment charges and merger-related charges (0.21%) (0.05%) (0.09%) (0.12%) (0.08%) Noninterest expense, excluding ORE expense, FHLB prepayment charges and merger-related charges/ Average Assets 2.11% 2.37% 2.37% 2.30% 2.30%

Reconciliation of Non-GAAP measures

Income Statement

45

3Q16 2Q16 1Q16 4Q15 3Q15 Net income $32,376 $30,787 $27,965 $26,854 $24,149 Merger-related charges 5,672 980 1,830 2,489 2,249 Tax effect on merger-related charges (2,225) (385) (718) (977) (882) Net income less merger-related charges $35,823 $31,382 $29,077 $28,366 $25,516 Basic earnings per share $0.71 $0.75 $0.70 $0.67 $0.64 Adjustment to basic earnings per share due to merger-related charges 0.08 0.01 0.03 0.04 0.03 Basic earnings per share excluding merger-related charges $0.79 $0.76 $0.73 $0.71 $0.67 Diluted earnings per share $0.71 $0.73 $0.68 $0.65 $0.62 Adjustment to diluted earnings per share due to merger-related charges 0.07 0.02 0.03 0.04 0.04 Diluted earnings per share excluding merger-related charges $0.78 $0.75 $0.71 $0.69 $0.66 Book value per share $31.97 $29.92 $29.26 $28.25 $27.80 Adjustment due to goodwill, core deposit and other intangible assets (12.28) (10.34) (10.51) (10.79) (10.71) Tangible book value per share $19.69 $19.58 $18.75 $17.46 $17.09

Reconciliation of Non-GAAP measures

Income Statement

46

Reconciliation of Non-GAAP measures

3Q16 2Q16 1Q16 4Q15 3Q15 Net income $32,376 $30,787 $27,965 $26,854 $24,149 Merger-related charges 5,672 980 1,830 2,489 2,249 Tax effect on merger-related charges (2,225) (385) (718) (977) (882) Net income less merger-related charges $35,823 $31,382 $29,077 $28,366 $25,516 Return on average assets 1.18% 1.33% 1.27% 1.24% 1.27% Adjustment due to merger-related charges 0.13% 0.03% 0.05% 0.07% 0.07% Return on average assets (excluding merger-related charges) 1.31% 1.36% 1.32% 1.31% 1.35% Average stockholders’ equity $1,442,440 $1,247,762 $1,188,153 $1,153,681 $986,325 Less: Average goodwill (541,153) (431,155) (430,228) (430,574) (317,461) Average core deposit and other intangible assets (11,296) (9,367) (10,237) (11,261) (7,634) Net Average tangible common equity $889,991 $807,240 $747,688 $711,846 $661,230 Return on average common equity 8.93% 9.92% 9.47% 9.24% 9.71% Adjustment due to goodwill, core deposit and other intangible assets 5.54% 5.42% 5.57% 5.73% 4.78% Return on average tangible common equity 14.47% 15.34% 15.04% 14.97% 14.49% Adjustment due to merger related charges 1.54% 0.30% 0.60% 0.84% 0.82% Return on average tangible common equity (excluding merger-related charges) 16.01% 15.64% 15.64% 15.81% 15.31% Total average assets $10,883,546 $9,305,941 $8,851,978 $8,565,341 $7,514,633

Pinnacle Financial Partners Profile Supplemental Information

47

PNFP Profile

48

Headquarters: Nashville, TN Founded: 2000 Total assets: $10.978 Billion (9/30/16) Shareholders’ equity: $1,476 Billion (9/30/16) Offices: 28 in 8 Middle-TN counties 10 in 5 East-TN counties 5 in West-TN

• Avg. daily trading volume **: 210,146 shares

% Institutional ownership: 70.09% (6/30/16)

Recently completed acquisitions will position firm in four great banking markets

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

PNFP Profile

49

PNFP has an extraordinarily experienced team of entrepreneurs

Name Title Age Years in Banking Industry Years at Pinnacle

• M. Terry Turner

President and Chief Executive Officer 61 38 16 Robert A. McCabe, Jr. Chairman of the Board 66 39 16 Hugh M. Queener Chief Administrative Officer 60 41 16 Harold R. Carpenter, Jr. Chief Financial Officer 57 33 16

• J. Harvey White

Chief Credit Officer/ Knoxville Regional Executive 67 42 7 Joanne B. Jackson Manager, Client Services Group - Nashville 59 40 16

• D. Kim Jenny

Risk Management Officer 62 41 9 William S. Jones Rutherford County Area Executive 56 34 24*

• J. Edward White

Manager, Client Advisory Group - Nashville 64 41 16

• R. Craig Holley

Chattanooga Regional Executive 59 35 10* Kirk Bailey Memphis Regional Executive 61 34 17* New Leadership: Ron Samuels Former CEO Avenue Financial Holdings, Inc. 70 43 10* Kent Cleaver Former President Avenue Financial Holdings, Inc. 60 39 10* * - Includes years at acquired franchise.

PNFP Profile

50

PNFP compares favorably to high performing peers

• Pinnacle Financial Partners (PNFP)
• Bancorp South (BXS)
• Bank of the Ozarks (OZRK)
• Columbia Banking System, Inc.

(COLB)

• CVB Financial Corp. (CVBF)
• Eagle Bancorp, Inc. (EGBN)
• F.N.B Corp (FNB)
• FCB Financial Holdings, Inc. (FCB)
• First Midwest Bancorp (FMBI)
• Hilltop Holdings Inc. (HTH)
• Independent Bank Corp. (INDB)
• Legacy Texas Financial Group, Inc.

(LTXB)

• MB Financial Inc. (MBFI)
• Private Bank (PVTB)
• Renasant Corporation (RNST)
• South State Corporation (SSB)
• Sterling Bancorp (STL)
• Trustmark Corporation (TRMK)
• Union First Market Bkshs Co (UBSH)
• United Bankshares, Inc. (UBSI)
• United Community Banks, Inc.

(UCBI)

• Western Alliance Bancorporation

(WAL)

PNFP Profile

51

Nashville-Davidson-Rutherford MSA Knoxville MSA

Top 10 Market Share Rank Holding Company Market Share 6/30/16 Market Share 6/30/00 (1) Change in Share Top 10 Market Share Rank Holding Company Market Share 6/30/16 Market Share 6/30/07 (1) Change in Share 3 Pinnacle Financial Partners 11.81% 1.74% 10.07% 6 Pinnacle Financial Partners 5.26% 0.03% 5.23% 6 Franklin Financial Network Inc. 4.53%

• 4.53%

7 Bank of America Corp. 3.80% 2.00% 1.80% 1 Bank of America Corp 16.13% 14.59% 1.54% 10 Mountain Commerce Bancorp, Inc. 1.78% 0.00% 1.78% 5 First Horizon National Corp. 6.51% 5.13% 1.38% 1 SunTrust Banks Inc. 17.86% 16.19% 1.67% 8 Wilson Bank Holding Co. 3.30% 2.34% 0.96% 9 Clayton HC Inc. 2.32% 1.10% 1.22% 10 Wells Fargo & Co. 2.80% 2.05% 0.75% 5 BB&T Corp. 6.46% 6.19% 0.27% 9 Fifth Third Bancorp 2.91% 2.29% 0.62% 4 Home Federal Bank of TN 9.91% 10.87% (0.96%) 7 U.S. Bancorp 3.52% 7.35% (3.83%) 8 United Community Banks Inc. 2.80% 5.30 (2.50%) 4 SunTrust Banks Inc. 11.43% 18.60% (7.17%) 2 First Horizon 16.14% 19.11% (2.97%) 2 Regions Financial Corp. 13.88% 29.06% (15.18%) 3 Regions 13.58% 18.25 (4.67%) Other 23.18% 16.87% 6.31% Other 20.09% 19.03% 1.06% Total 100% 100% Total 100% 100%

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

Source: SNL Financial; Amounts reflect aggregation of banks merged prior to 6/30/16. (1): First year Pinnacle’s deposits were reflected in FDIC Summary of Deposits data. Market share at 6/30/00 for Nashville reflects impact of Cavalry Bancorp, Inc. which was acquired by Pinnacle in March of 2006. Market share at 6/30/16 is pro- forma for inclusion of Avenue Financial Holdings, Inc. which was acquired by Pinnacle July 1, 2016.

PNFP Profile

52

Chattanooga TN-GA MSA Memphis, TN-MS-AR MSA Top 10 Market Share Rank Holding Company Market Share 6/30/16 Market Share 6/30/15(1) Change in Share Top 11 Market Share Rank Holding Company Market Share 6/30/16 Market Share 6/30/15(1) Change in Share 7 FB Financial Corporation 3.44% 0.00% 3.44% 1 First Horizon National Corp. 33.13% 29.87% 3.26% 10 Atlantic Capital Bancshares, Inc. 3.23% 0.00% 3.23% 4 Bank of America Corp. 4.39% 4.10% 0.29% 1 First Horizon National Corp. 24.61% 23.46% 1.15% 6 Independent Holdings Inc. 3.02% 2.83% 0.19% 6 Bank of America Corp. 4.34% 3.75% 0.59% 10 Wells Fargo & Co. 1.85% 1.72% 0.13% 9 Sequatchie Valley Bancshares Inc. 3.30% 3.27% 0.03% 8 Metropolitan BancGroup Inc. 2.11% 1.98% 0.13% 4 Pinnacle Financial Partners 6.56% 3.75% 2.81% 9 Landmark Community Bank 2.11% 2.04% 0.07% 5 First Volunteer Corp. 4.58% 4.74% (0.16%) 11 Pinnacle Financial Partners 1.68% 2.83% 0.03% 8 SmartFinancial Inc. 3.35% 3.68% (0.33%) 5 BancorpSouth Inc. 3.34% 3.36% (0.02%) 2 SunTrust Banks Inc. 18.06% 13.13% (0.34%) 7 Trustmark Corp. 2.44% 2.85% (0.41%) 3 Regions Financial Corp. 12.79% 19.42% (1.36%) 2 Regions Financial Corp. 14.33% 16.14% (1.81%) Other 15.74% 24.80% (9.06%) 3 SunTrust Banks Inc. 7.73% 10.20% (2.47%) Total 100% 100% Other 23.87% 22.08% 1.79% Total 100% 100%

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

Source: SNL Financial; Amounts reflect aggregation of banks merged prior to 2016.

(1): Market share at 6/30/15 for Chattanooga and Memphis reflects impact of the recently completed acquisitions of CapitalMark Bank & Trust and Magna Bank, respectively.

Economic & Market Conditions Supplemental Information

53

PNFP operates in advantaged markets

54

MSA Total Deposits ($000) Total Population 2017 (actual) Population Change 2010 - 2017 (%) Median HH Income 2017 ($) Per Capita Income 2017 ($) Nashville-Davidson--Murfreesboro--Franklin, TN 51,900,622 1,881,524 12.61 57,222 31,399 Memphis, TN-MS-AR 28,030,646 1,347,404 1.70 48,913 26,455 Knoxville, TN 14,651,761 868,453 3.69 47,178 27,570 Chattanooga, TN-GA 9,299,665 552,944 4.70 49,405 27,618 Kingsport-Bristol-Bristol, TN-VA 4,263,979 306,759 (0.90) 41,364 24,422 Clarksville, TN-KY 3,468,934 286,140 9.79 47,605 22,862 Johnson City, TN 2,600,753 201,033 1.17 40,214 24,428 Cookeville, TN 2,226,784 108,782 2.58 37,053 21,819 Jackson, TN 2,161,539 129,338 (0.52) 43,717 24,182 Sevierville, TN 2,091,078 97,687 8.68 43,855 23,528 Cleveland, TN 1,688,794 122,465 5.77 45,659 24,648 Tullahoma-Manchester, TN 1,519,976 102,873 2.66 44,044 24,014 Morristown, TN 1,427,892 117,591 3.19 42,106 21,915 Union City, TN-KY 1,010,526 36,410 (5.72) 38,861 21,784 Crossville, TN 956,921 58,811 4.92 40,728 23,433 Athens, TN 948,822 52,729 0.89 41,640 21,590 McMinnville, TN 823,895 40,775 2.35 37,652 21,247 Greeneville, TN 748,295 68,639 (0.28) 39,025 21,148 Dyersburg, TN 667,944 37,792 (1.42) 44,976 24,781 Shelbyville, TN 661,984 48,088 6.72 44,463 20,979 Tennessee 135,502,447 6,676,841 5.21 47,294 5.38 United States 9,741,234,831 325,139,271 5.31 57,462 7.27 Source: Nielsen Demographic data is provided by Nielsen based primarily on US Census data. For non-census year data, Nielsen uses samples and projections to estimate the demographic data. SNL performs calculations on the underlying data provided by Nielsen for some of the data presented on this page.

Pinnacle operates in healthy business markets

TENNESSEE

• Tennessee is fourth overall and in the top 10 of every category in “Top States for Doing Business”

Area Development

• Tennessee ranked No. 1 in the nation for job creation from foreign direct investment

IBM Global Location Trends

• Tennessee ranks in the top 10 among all states in mobile capital investment, a measure of

Ernst & Young corporate investment in office buildings, call centers, factories and distribution centers

• Tennessee received an A-plus for friendliness to small businesses, one of three states in the

Thumbtack nation to earn a top score NASHVILLE Nashville has achieved “it city” status, landing on several major national publications’ lists of hot spots. Nashville’s diverse economy, thriving cultural base and strong business community are major attractions for corporations. The accolades continued in the third quarter of 2016:

• Nashville is No. 1 among America’s 50 biggest metropolitan areas with the biggest household

Wall Street Journal income gains

• Nashville ranked No. 1 among the nation’s 100 largest metros in advanced industry job growth

Brookings Institution

• Nashville is in fifth place on the list of best cities for jobs this fall

ManpowerGroup KNOXVILLE Knoxville also enjoys a very healthy and diverse economy with an excellent transportation and technology infrastructure. The Knoxville metropolitan area was the third fastest MSA in the country to fully recover from jobs lost in the 2007-2010 recession and currently enjoys the lowest unemployment rate of Tennessee’s metro areas. Good news in the third quarter of 2016 includes:

• Knoxville ranks as fifth lowest-cost city for starting a new business

SmartAsset

• Knox County took in more than $1 billion in tourism dollars last year

Knoxville News Sentinel

PNFP operates in advantaged markets

Pinnacle operates in healthy business markets

MEMPHIS Memphis offers a diverse, metropolitan workforce. Over the past three decades, the presence of companies like FedEx and the region’s superior distribution infrastructure have earned Memphis the title, “America’s Distribution Center.”

• Memphis is one of the Top 10 metropolitan cities with the biggest household income gains in 2015

U.S. Census Bureau

• Memphis ranks No. 7 lowest-cost city for starting a new business

SmartAsset CHATTANOOGA Chattanooga is Tennessee’s fourth-largest MSA as measured by both population and deposits. National publications have declared Chattanooga a tech hub and manufacturing magnet. Economic drivers include:

• Chattanooga ranked No. 4 out of the top 10 metro areas as a top city for minority-owned

SmartAsset businesses

• Chattanooga ranked best U.S. city for the lowest business startup costs for the second

SmartAsset consecutive year

PNFP operates in advantaged markets

57

PNFP operates in advantaged markets

Job growth is occurring in all four markets

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

650,000 700,000 750,000 800,000 850,000 900,000 950,000 1,000,000 Nashville MSA Nonfarm Payrolls- SA (thru August 2016) 330,000 340,000 350,000 360,000 370,000 380,000 390,000 400,000 Knoxville MSA Nonfarm Payrolls- SA (thru August 2016) 210,000 215,000 220,000 225,000 230,000 235,000 240,000 245,000 250,000 255,000 Chattanooga MSA Nonfarm Payrolls- SA (thru August 2016) 560,000 570,000 580,000 590,000 600,000 610,000 620,000 630,000 640,000 650,000 Memphis MSA Nonfarm Payrolls- SA (thru August 2016)

58

PNFP operates in advantaged markets

Rapid job growth leads to rapid real estate absorption

Source: BERC – Middle Tennessee State University & Bureau of Labor Statistics, GNAR, GCAR, MAAR, and KAAR

Home Sales

Nashville Knoxville^ Memphis Chattanooga^ 3Q16 % Change from PY 3Q16 % Change from PY 3Q16 % Change from PY 3Q16 % Change from PY

• Avg. Qtrly. Median

Home Price $258,967 9.9% $170,500 5.0% $138,833 8.2% $166,483 6.1% Quarterly Closings 9,145 (1.0%) 2,987 1.8% 4,975 8.3% 2,577 5.6% Quarter end Inventory 8,015 (8.2%) 7,810 (17.4%) 5,504 (14.1%) 3,543 (20.5%) Months of Inventory* 2.8 (9.5%) 5.3 (20.6%) 3.4 (24.3%) 4.0 (29.1%)

*: Calculated as quarter end inventory divided by monthly closings ^: Data available through August 0.00 2.00 4.00 6.00 8.00 10.00 12.00

Unemployment Rates Seasonally Adjusted (thru July 2016)

Nashville Knoxville Chattanooga Memphis US

Nashville’s commercial vacancy rates indicate a healthy market

PNFP Operates in Advantaged Markets

59

Source: Costar **: current quarter data not yet available

CRE Vacancy Rates Nashville Knoxville Chattanooga Memphis National**

3Q16 % Change from PY 3Q16 % Change from PY 3Q16 % Change from PY 3Q16 % Change from PY 2Q16 % Change from PY

Industrial / Warehouse

5.54% 60.6% 7.64% 81.0% 9.27% 34.7% 10.11% 25.1%

7.4% (7.5%)

Multifamily

5.62% (10.9%) 5.72% 14.4% 7.35% 45.5% 8.83% (4.9%)

4.1% (0.2%)

Retail

5.37% 32.9% 6.39% 15.3% 6.03% 25.1% 8.20% 11.6%

5.7% (8.3%)

Office

5.35% 32.1% 7.76% 28.1% 9.22% 29.3% 10.53% 2.4%

10.6% (5.1%)

Third Quarter 2016 Investor Call

• M. Terry Turner, President and CEO

Harold R. Carpenter, EVP and CFO October 19, 2016