EX-99.1 2 a2q24pnfpearningsrelease.htm EX-99.1 Document

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FOR IMMEDIATE RELEASE
MEDIA CONTACT:Joe Bass, 615-743-8219
FINANCIAL CONTACT:Harold Carpenter, 615-744-3742
WEBSITE: www.pnfp.com

PNFP REPORTS 2Q24 DILUTED EPS OF $0.64 AND NET INTEREST MARGIN OF 3.14 PERCENT
Excluding impacts of capital optimization and balance sheet repositioning initiatives, diluted EPS of $1.63


NASHVILLE, TN, July 16, 2024 - Pinnacle Financial Partners, Inc. (Nasdaq/NGS: PNFP) reported net income per diluted common share of $0.64 for the quarter ended June 30, 2024, compared to net income per diluted common share of $2.54 for the quarter ended June 30, 2023, a decrease of approximately 74.8 percent. Net income per diluted common share was $2.21 for the six months ended June 30, 2024, compared to $4.30 for the six months ended June 30, 2023, a decrease of approximately 48.6 percent.
After considering the adjustments noted in the table below, net income per diluted common share was $1.63 for the three months ended June 30, 2024, compared to $1.80 for the three months ended June 30, 2023, and $1.53 for the three months ended March 31, 2024, an annualized linked-quarter growth rate of 26.1 percent. Net income per diluted common share adjusted for the items noted in the table below was $3.16 for the six months ended June 30, 2024, compared to $3.55 for the six months ended June 30, 2023.
Three months ended Six months ended
June 30, 2024March 31, 2024June 30, 2023June 30, 2024June 30, 2023
Diluted earnings per common share$0.64 $1.57 $2.54 $2.21 $4.30 
Net of tax adjustments (1):
Investment losses on sales of securities, net0.71 — 0.10 0.71 0.10 
Gain on sale of fixed assets as a result of sale-leaseback transaction— — (0.84)— (0.84)
Recognition of mortgage servicing asset— (0.12)— (0.12)— 
ORE expense (2)
— — — — — 
FDIC special assessment — 0.08 — — 0.08 — 
Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives0.28 — — 0.28 — 
Diluted earnings per common share after adjustments$1.63 $1.53 $1.80 $3.16 $3.55 
(1): Adjustments include tax effect calculated using a marginal tax rate of 25.00 percent for all periods presented.
(2): Impact of ORE expense in all periods presented were minimal.

"It appears to us that, in the second quarter, we saw the inflection we had anticipated,” said M. Terry Turner, Pinnacle's President and Chief Executive Officer. "Not only did we continue to have outsized balance sheet growth which we expect to exceed that of peers, but we also had net interest margin expansion and ongoing double-digit growth in most of our fee businesses. Total revenues were $366.6 million during the second quarter of 2024 compared to $428.1 million last quarter. Excluding the adjustments noted above, total revenues increased $22.3 million, or 5.3 percent, to $438.7 million for the second quarter compared to $416.3 million in the first quarter.
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"Also, during the second quarter, we executed several initiatives with the objective of capital optimization and balance sheet repositioning that were both a priority for our firm going into 2024. We accomplished these objectives while increasing both our tangible common equity and tier 1 common equity ratios at the end of the second quarter and achieving an earnback period on the balance sheet repositioning of less than three years.
"I believe the various initiatives that have been undertaken in order to achieve sound growth, even in this more difficult operating environment, continue to differentiate our firm in terms of earnings trajectory. Our effort to increase our deposit base by expanding into various deposit verticals is progressing well, now reporting approximately $1.0 billion in net deposit growth in these verticals through the first half of 2024. Additionally, our strategic expansion into new markets and our ability to attract "best in class" revenue producers continue to fuel outsized growth. Loan growth attributable to these new markets for the first half of 2024 amounted to approximately 73 percent of our aggregate loan growth this year. Our latest expansion into Jacksonville is also advancing rapidly in terms of hiring revenue producers and moving client relationships, with that market reporting $20.1 million in loans, $28.8 million in deposits and $614.6 million in wealth management assets, all amassed within just the last three months. System-wide, our robust hiring continues, as we have added 89 new revenue producers thus far this year, 18 of which are in Jacksonville. Our hiring pipelines remain very robust heading into the second half of 2024.
"With the initiatives we accomplished in the second quarter, as well as our continued outlook for outsized loan and deposit growth, we enter the second half of 2024 with great optimism."

BALANCE SHEET GROWTH AND LIQUIDITY:

Total assets at June 30, 2024, were $49.4 billion, an increase of approximately $472.8 million from March 31, 2024, and $2.5 billion from June 30, 2023, reflecting a linked-quarter annualized increase of 3.9 percent and a year-over-year increase of 5.3 percent, respectively. A further analysis of select balance sheet trends follows:
Balances at Linked-Quarter
Annualized
% Change		Balances atYear-over-Year
% Change
(dollars in thousands)June 30, 2024March 31, 2024June 30, 2023
Loans$33,769,150 33,162,873 7.3%$31,153,290 8.4%
Securities7,882,8917,371,84727.7%6,623,45719.0%
Other interest-earning assets2,433,910 3,195,211 (95.3)%4,001,844 (39.2)%
Total interest-earning assets$44,085,951 $43,729,931 3.3%$41,778,591 5.5%
Core deposits:
Noninterest-bearing deposits$7,932,882 $7,958,739 (1.3)%$8,436,799 (6.0)%
Interest-bearing core deposits(1)
27,024,94526,679,8715.2%24,343,968 11.0%
Noncore deposits and other funding(2)
7,569,7037,506,4093.4%7,731,082 (2.1)%
Total funding $42,527,530 $42,145,019 3.6%$40,511,849 5.0%
(1): Interest-bearing core deposits are interest-bearing deposits, money market accounts and time deposits less than $250,000 including reciprocating time and money market deposits.
(2): Noncore deposits and other funding consists of time deposits greater than $250,000, securities sold under agreements to repurchase, public funds, brokered deposits, FHLB advances and subordinated debt.

•During the second quarter of 2024, the commercial and industrial and owner-occupied commercial real estate loan portfolios grew linked-quarter annualized 14.6 percent and 17.0 percent, respectively, while the non-owner occupied commercial real estate portfolio, which consists primarily of commercial real estate investment, multifamily and construction and development loans decreased linked-quarter annualized by 2.6 percent. The firm continues to pursue reduced levels of commercial real estate loans by significantly limiting growth in these loan segments until certain
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benchmarks are achieved. At June 30, 2024, the firm’s non-owner occupied commercial real estate, multifamily and construction and development loans to total risk-based capital ratio fell to 254.0 percent while our construction and land development loans to total risk-based capital ratio decreased to 72.9 percent. Over time, the firm has targeted a non-owner occupied commercial real estate, multifamily and construction and land development loans to total risk-based capital ratio of less than 225 percent and construction and land development loans to total risk-based capital ratio of less than 70 percent.
•Late in the second quarter of 2024, the firm executed various capital optimization and balance sheet repositioning initiatives intended to improve ongoing revenue and earnings run rates, as follows:
1.Reposition the firm’s securities portfolio with the goal of meaningfully enhancing its future performance - In doing so, the firm incurred losses in the second quarter related to the sale of approximately $894.8 million of available-for-sale securities at a net loss of $72.1 million and the termination of an agreement to resell for $500.0 million of securities that the firm had previously purchased (the resell agreement). The termination of the resell agreement required termination fees to be paid to the counterparty of approximately $27.6 million, which has been recognized in noninterest expense during the second quarter. The proceeds from the sale of the $894.8 million in available-for-sale securities and the $500.0 million resulting from the termination of the resell agreement have been reinvested such that the yield increase on the new securities acquired approximates 3.1 percent over the prior weighted average yields of the sold securities and the terminated resell agreement.
2.Offset the negative capital impact of the second quarter losses from the execution of the balance sheet repositioning initiatives - The firm executed a credit default swap arrangement (CDS) with a notional amount of $86.5 million with a counterparty which equals 5 percent of a reference pool of $1.73 billion of 1-4 family first lien mortgage loans whereby the counterparty will assume the first-loss position for these loans up to approximately $86.5 million in aggregate losses. The firm will pay to the counterparty an annual loss protection fee equal to 7.95 percent of the corresponding notional amount of the CDS, for as long as the loans in the reference pool remain outstanding. The notional amount of the CDS will decline over time as the loans in the reference portfolio are paid down, mature or the investor absorbs the first loss portion of any loan losses on those loans. Additionally, and in accordance with regulatory guidelines, the firm has implemented enhanced control processes with respect to certain other commercial loans which permits recharacterization of these loans in order to reduce the risk weights assigned to these loans. As a result, the loans subject to the CDS and the loans where risk ratings were able to be recharacterized now qualify for reduced risk weights pursuant to risk-based capital guidelines. The benefits of these reductions in risk weighting offset the impact to capital of the loss on the sale of the securities and the termination of the resell agreement. In order to accomplish the CDS and the recharacterization, the firm incurred $850,000 of professional fees during the second quarter which are also included in noninterest expense.
3.Minimize the payback period on the losses incurred in connection with the balance sheet restructuring transactions - The firm anticipates that the increased revenues from the repositioning of the firm’s investment securities portfolio, less the annual loss protection fees associated with the CDS, will offset the loss incurred on the sale of available-for-sale securities and the termination of the resell agreement within a three-year time period, which the firm believes to be a reasonable payback period.
"Despite moving quickly toward our previously announced lower targets for our construction and land development, non-owner occupied commercial real estate and multifamily portfolios as a percentage of risk-based capital, through the first six
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months of 2024, our loan growth approximated $1.1 billion, a 6.7 percent annualized rate of growth," Turner said. "We are optimistic that we should see increases in the pace of loan growth in the second half of 2024 as we believe we will continue to take market share from the larger franchises that currently dominate our newer markets.
"As to deposit growth, during the second quarter, total deposits were up approximately $368.4 million while brokered deposits decreased by $339.7 million during the quarter. Excluding these brokered deposits, total deposits were up $708.1 million in the quarter which was similar to our experience in the first quarter of 2024. Importantly, we are very pleased that our noninterest bearing deposit balances were relatively stable during the entirety of the second quarter."


PRE-TAX, PRE-PROVISION NET REVENUE (PPNR) GROWTH:

Pre-tax, pre-provision net revenues (PPNR) for the three and six months ended June 30, 2024, were $95.2 million and $280.9 million, respectively, a decrease of 65.7 and 39.9 percent, respectively, from the $277.6 million and $467.6 million recognized in the three and six months ended June 30, 2023, respectively.
Three months ended Six months ended
June 30,June 30,
(dollars in thousands)20242023 % change20242023% change
Revenues:
Net interest income$332,262 $315,393 5.3 %$650,296 $627,624 3.6 %
Noninterest income34,288 173,839 (80.3)%144,391 263,368 (45.2)%
Total revenues366,550 489,232 (25.1)%794,687 890,992 (10.8)%
Noninterest expense271,389 211,641 28.2 %513,754 423,368 21.3 %
Pre-tax, pre-provision net revenue (PPNR)95,161 277,591 (65.7)%280,933 467,624 (39.9)%
Adjustments:
Investment losses on sales of securities, net72,103 9,961 >100%72,103 9,961 >100%
Gain on the sale of fixed assets as a result of sale leaseback— (85,692)(100.0)%— (85,692)(100.0)%
Recognition of mortgage servicing asset— — NA(11,812)— 100.0 %
ORE expense 22 58 (62.1)%106 157 (32.5)%
FDIC special assessment— — NA7,250 — NA
Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives28,400 — 100.0 %28,400 — 100.0 %
Adjusted PPNR$195,686 $201,918 (3.1)%$376,980 $392,050 (3.8)%
Three months endedSix months ended
June 30, 2024March 31, 2024June 30, 2023June 30, 2024June 30, 2023
Net interest margin3.14 %3.04 %3.20 %3.09 %3.30 %
Efficiency ratio74.04 %56.61 %43.26 %64.65 %47.52 %
Return on average assets0.41 %1.00 %1.71 %0.70 %1.49 %
Return on average tangible common equity (TCE)4.90 %12.11 %21.06 %8.48 %18.33 %
Average loan to deposit ratio84.95 %84.73 %84.94 %84.84 %84.47 %

•Net interest income for the second quarter of 2024 was $332.3 million, compared to $318.0 million for the first quarter of 2024 and $315.4 million for the second quarter of 2023, a year-over-year growth rate of 5.3 percent. Net interest margin was 3.14 percent for the second quarter of 2024, compared to 3.04 percent for the first quarter of 2024 and 3.20 percent for the second quarter of 2023.

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Noninterest income for the second quarter of 2024 was $34.3 million compared to $110.1 million for the first quarter of 2024 and $173.8 million for the second quarter of 2023.
Three months ended Linked-quarter Annualized % ChangeThree months endedYr-over-Yr
% Change
(dollars in thousands)June 30, 2024March 31, 2024June 30, 2023
Noninterest income$34,288 $110,103 >(100.0%)$173,839 (80.3)%
Less:
Investment losses on sales of securities, net72,103 — 100.0 %9,961 >100%
Gain on the sale of fixed assets as a result of sale leaseback— — — %(85,692)(100.0)%
Recognition of mortgage servicing asset— (11,812)(100.0)%— — %
Adjusted noninterest income$106,391 $98,291 33.0 %$98,108 8.4 %

•Wealth management revenues, which include investment, trust and insurance services, were $27.8 million for the second quarter of 2024, compared to $26.0 million for the first quarter of 2024 and $24.1 million for the second quarter of 2023, a year-over-year increase of 15.4 percent. The increase in wealth management revenues was attributable to several factors, but primarily is the result of an increase in capacity with more revenue producers and the placement of those producers in the areas of the firm's most recent strategic market expansions.
•During the second quarter of 2024, net gains from mortgage loans sold were $3.3 million, compared to $2.9 million in the first quarter of 2024 and $1.6 million in the second quarter of 2023. Similar to wealth management, the increase in mortgage fee income was primarily attributable to increases in capacity with more originators in Pinnacle's newer strategic market expansions.
•Income from the firm's investment in Banker's Healthcare Group (BHG) was $18.7 million for the second quarter of 2024, compared to $16.0 million for the first quarter of 2024 and $26.9 million for the second quarter of 2023, a year-over-year decline of 30.6 percent.
◦BHG's loan originations increased to $871 million in the second quarter of 2024, compared to $692 million in the first quarter of 2024 and $1.1 billion in the second quarter of 2023.
◦Loans sold to BHG's community bank partners were approximately $467 million in the second quarter of 2024, compared to approximately $533 million in the first quarter of 2024 and $523 million in the second quarter of 2023.
◦BHG reserves for on-balance sheet loan losses were $271 million, or 9.9 percent of loans held for investment at June 30, 2024, compared to 10.3 percent at March 31, 2024 and 6.0 percent at June 30, 2023. The year-over-year increase in reserves as a percentage of loans held for investment was impacted by BHG's adoption of lifetime credit losses associated with its implementation of the current expected credit loss (CECL) methodology on Oct. 1, 2023.
◦BHG increased its accrual for estimated losses attributable to loan substitutions and prepayments to $415 million, or 5.9 percent of the unpaid loan balances that were previously purchased by BHG's community bank network, at June 30, 2024, compared to $391 million, or 5.7 percent, at March 31, 2024 and $369 million, or 5.9 percent, at June 30, 2023.
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•Other noninterest income was $41.8 million for the quarter ended June 30, 2024, a decline of $9.9 million between the second quarter of 2024 and the first quarter of 2024 and an increase of $8.4 million from the second quarter of 2023. Positively impacting other noninterest income in the first quarter of 2024 was approximately $11.8 million associated with the recognition of the Freddie Mac Small Business Lending mortgage servicing asset.

Noninterest expense for the second quarter of 2024 was $271.4 million compared to $242.4 million for the first quarter of 2024 and $211.6 million for the second quarter of 2023.
Three months ended Linked-quarter Annualized % ChangeThree months endedYr-over-Yr
% Change
(dollars in thousands)June 30, 2024March 31, 2024June 30, 2023
Noninterest expense $271,389 $242,365 47.9 %$211,641 28.2 %
Less:
ORE expense22 84 NM58 (62.1)%
FDIC special assessment— 7,250 (100.0)%— — %
Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives28,400 — 100.0 %— 100.0 %
Adjusted noninterest expense$242,967 $235,031 13.5 %$211,583 14.8 %

•Salaries and employee benefits were $150.1 million in the second quarter of 2024, compared to $146.0 million in the first quarter of 2024 and $132.4 million in the second quarter of 2023, reflecting a year-over-year increase of 13.3 percent.
◦Full-time equivalent associates increased to 3,469.0 at June 30, 2024 from 3,386.5 at March 31, 2024 and 3,309.0 at June 30, 2023, a year-over-year increase of 4.8 percent.
◦Cash and equity incentive costs in the second quarter of 2024 were approximately $4.3 million higher than the first quarter of 2024 and $4.8 million higher than the amounts recorded in the second quarter of 2023.
•Equipment and occupancy costs were $41.0 million in the second quarter of 2024, compared to $39.6 million in the first quarter of 2024, reflecting an increase of 3.5 percent, and $33.7 million in the second quarter of 2023, reflecting a year-over-year increase of 21.7 percent. Comparing the second quarter of 2024 to the second quarter of 2023, several factors contributed to the increase of equipment and occupancy costs, including new equipment and facilities, rent escalators on various properties and the previously disclosed sale-leaseback transaction executed in the second quarter of 2023.
•Noninterest expense categories, other than those specifically noted above, were $80.2 million in the second quarter of 2024, compared to $56.7 million in the first quarter of 2024, reflecting an increase of 41.5 percent, and $45.5 million in the second quarter of 2023, reflecting a year-over-year increase of 76.4 percent. Primarily impacting the quarterly changes in other noninterest expense between the first and second quarters of 2024 was the impact of the $28.4 million in fees paid to terminate the resell agreement and professional fees incurred in connection with the capital optimization initiatives described elsewhere in this release.
"During the second quarter, while our net interest margin expanded to 3.14 percent, we anticipate continued margin expansion for the remainder of 2024," said Harold R. Carpenter, Pinnacle's Chief Financial Officer. "Second quarter net interest margin expansion was the direct result of an intense focus on obtaining appropriate pricing on new and renewing loans, stability of our noninterest bearing deposit balances, and our relationship managers working extremely hard to keep our deposit pricing well contained during the quarter.
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"We are very excited about our core fee performance during the second quarter. Second quarter fee growth in nearly every core fee category, including, but not limited to service charges, wealth management and mortgage, exceeded double-digit growth in comparison to the second quarter of 2023. BHG also had another strong quarter as their contribution was up approximately $2.7 million from the first quarter. At this time, we are anticipating the quarterly run rate for BHG's contribution to be fairly consistent with their second quarter contribution for the remainder of 2024.
"Our expense results for the second quarter are generally consistent with where we thought we would be excluding the costs of the balance sheet restructuring and capital optimization initiatives. That said, we are seeing strong hiring across our franchise, particularly in our newer markets and, in most cases, more favorable results than we anticipated. Given our outlook for the remainder of the year, we are increasing our accrual for annual cash incentive plan payouts to approximately 85 percent of target level payouts as of the end of the second quarter."

CAPITAL, SOUNDNESS AND TAXES:
As of
June 30, 2024December 31, 2023June 30, 2023
Shareholders' equity to total assets12.5 %12.6 %12.5 %
Tangible common equity to tangible assets8.6 %8.6 %8.3 %
Book value per common share$77.15 $75.80 $73.32 
Tangible book value per common share$52.92 $51.38 $48.85 
Annualized net loan charge-offs to avg. loans (1)
0.27 %0.17 %0.13 %
Nonperforming assets to total loans, ORE and other nonperforming assets (NPAs)0.30 %0.27 %0.15 %
Classified asset ratio (Pinnacle Bank) (2)
3.99 %5.22 %3.32 %
Construction and land development loans as a percentage of total capital (3)
72.90 %84.20 %84.50 %
Construction and land development, non-owner occupied commercial real estate and multi-family loans as a percentage of total capital (3)
254.00 %259.00 %256.70 %
Allowance for credit losses (ACL) to total loans 1.13 %1.08 %1.08 %
(1): Annualized net loan charge-offs to average loans ratios are computed by annualizing quarterly net loan charge-offs and dividing the result by average loans for the quarter.
(2): Classified assets as a percentage of Tier 1 capital plus allowance for credit losses.
(3): Calculated using the same guidelines as are used in the Federal Financial Institutions Examination Council's Uniform Bank Performance Report.

"Net charge-offs to average loans for the second quarter of 2024 were 0.27 percent, compared to 0.20 percent in the prior quarter," Carpenter said. "Net charge-offs increased in the second quarter primarily due to the continued deterioration of the value of the underlying collateral of an owner-occupied commercial real estate loan. In light of these matters, our special assets officers determined it was time to exit the borrower. This resulted in a charge-off of $10.3 million which was recognized in the second quarter. Most of our other key asset quality metrics continue to be better than longer-term historical levels as we experienced a decrease in nonperforming loans in relation to total loans at June 30, 2024 and experienced overall improvement in past dues, classified assets and potential problem loans ratios.
"Our effective tax rate for the first six months of 2024 was 18.1 percent. Excluding adjustments noted above and other tax benefits, the effective tax rate would have approximated 19.6 percent for the first six months of 2024, which is consistent with our historical run rates.
"Also, we are reporting an increase in book value per common share during the quarter from $76.23 to $77.15, an annualized linked-quarter increase of 4.8 percent and an increase in tangible book value per common share from $51.98 at March 31, 2024 to $52.92 at June 30, 2024, an annualized linked-quarter increase of 7.2 percent. Additionally, even after considering the securities losses, termination fees associated with terminating the resell agreement and transaction expenses associated with the capital
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optimization initiatives, the firm's common equity Tier one risk-based capital ratio increased from 10.4 percent at March 31, 2024 to 10.7 percent at June 30, 2024 which we also consider a great accomplishment."

BOARD OF DIRECTORS DECLARES DIVIDENDS

On July 16, 2024, Pinnacle Financial's Board of Directors approved a quarterly cash dividend of $0.22 per common share to be paid on Aug. 30, 2024 to common shareholders of record as of the close of business on Aug. 2, 2024. Additionally, the Board of Directors approved a quarterly cash dividend of approximately $3.8 million, or $16.88 per share (or $0.422 per depositary share), on Pinnacle Financial's 6.75 percent Series B Non-Cumulative Perpetual Preferred Stock payable on Sept. 1, 2024 to shareholders of record at the close of business on Aug. 17, 2024. The amount and timing of any future dividend payments to both preferred and common shareholders will be subject to the approval of Pinnacle's Board of Directors.

WEBCAST AND CONFERENCE CALL INFORMATION

Pinnacle will host a webcast and conference call at 8:30 a.m. CDT on July 17, 2024, to discuss second quarter 2024 results and other matters. To access the call for audio only, please call 1-877-209-7255. For the presentation and streaming audio, please access the webcast on the investor relations page of Pinnacle's website at www.pnfp.com.
For those unable to participate in the webcast, it will be archived on the investor relations page of Pinnacle's website at www.pnfp.com for 90 days following the presentation.
Pinnacle Financial Partners provides a full range of banking, investment, trust, mortgage and insurance products and services designed for businesses and their owners and individuals interested in a comprehensive relationship with their financial institution. The firm is the No. 1 and fastest growing bank in the Nashville-Murfreesboro-Franklin MSA, according to June 30, 2023 deposit data from the FDIC. Pinnacle is No. 11 on the 2024 list of 100 Best Companies to Work For® in the U.S., its eighth consecutive appearance and was recognized by American Banker as one of America's Best Banks to Work For 11 years in a row and No. 1 among banks with more than $10 billion in assets in 2023.
Pinnacle Bank owns a 49 percent interest in Bankers Healthcare Group (BHG), which provides innovative, hassle-free financial solutions to healthcare practitioners and other professionals. Great Place to Work and FORTUNE ranked BHG No. 4 on its 2021 list of Best Workplaces in New York State in the small/medium business category.
The firm began operations in a single location in downtown Nashville, TN in October 2000 and has since grown to approximately $49.4 billion in assets as of June 30, 2024. As the second-largest bank holding company in Tennessee, Pinnacle operates in several primarily urban markets across the Southeast.
Additional information concerning Pinnacle, which is included in the Nasdaq Financial-100 Index, can be accessed at www.pnfp.com.
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Forward-Looking Statements
All statements, other than statements of historical fact, included in this press release, 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 and its subsidiaries or BHG, including as a result of persistent elevated interest rates, the negative impact of inflationary pressures and challenging economic conditions on our and BHG's customers and their businesses, resulting in significant increases in loan losses and provisions for those losses and, in the case of BHG, substitutions; (ii) fluctuations or differences in interest rates on
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loans or deposits from those that Pinnacle Financial is modeling or anticipating, including as a result of Pinnacle Bank's inability to better match deposit rates with the changes in the short-term rate environment, or that affect the yield curve; (iii) the sale of investment securities in a loss position before their value recovers, including as a result of asset liability management strategies or in response to liquidity needs; (iv) adverse conditions in the national or local economies including in Pinnacle Financial's markets throughout the Southeast region of the United States, particularly in commercial and residential real estate markets; (v) the inability of Pinnacle Financial, or entities in which it has significant investments, like BHG, to maintain the long-term historical growth rate of its, or such entities', loan portfolio; (vi) the ability to grow and retain low-cost core deposits and retain large, uninsured deposits, including during times when Pinnacle Bank is seeking to limit the rates it pays on deposits or uncertainty exists in the financial services sector; (vii) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (viii) effectiveness of Pinnacle Financial's asset management activities in improving, resolving or liquidating lower-quality assets; (ix) 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 the negative impact to net interest margin from rising deposit and other funding costs; (x) the results of regulatory examinations of Pinnacle Financial, Pinnacle Bank or BHG, or companies with whom they do business; (xi) BHG's ability to profitably grow its business and successfully execute on its business plans; (xii) risks of expansion into new geographic or product markets; (xiii) any matter that would cause Pinnacle Financial to conclude that there was impairment of any asset, including goodwill or other intangible assets; (xiv) the ineffectiveness of Pinnacle Bank's hedging strategies, or the unexpected counterparty failure or hedge failure of the underlying hedges; (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) deterioration in the valuation of other real estate owned and increased expenses associated therewith; (xvii) inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies, required capital maintenance levels or regulatory requests or directives, particularly if Pinnacle Bank's level of applicable commercial real estate loans were to exceed percentage levels of total capital in guidelines recommended by its regulators; (xviii) approval of the declaration of any dividend by Pinnacle Financial's board of directors; (xix) the vulnerability of Pinnacle Bank's network and online banking portals, and the systems of parties with whom Pinnacle Bank contracts, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; (xx) 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; (xxi) Pinnacle Financial's ability to identify potential candidates for, consummate, and achieve synergies from, potential future acquisitions; (xxii) difficulties and delays in integrating acquired businesses or fully realizing costs savings and other benefits from acquisitions; (xxiii) the risks associated with 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 or all or a portion of their ownership interests in BHG (triggering a similar sale by Pinnacle Bank); (xxiv) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, like BHG, including regulatory or legislative developments; (xxv) fluctuations in the valuations of Pinnacle Financial's equity investments and the ultimate success of such investments; (xxvi) the availability of and access to capital; (xxvii) 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 involving Pinnacle Financial, Pinnacle Bank or BHG; and (xxviii) 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 for the year ended December 31, 2023, and subsequently filed 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.

9

Non-GAAP Financial Matters
This release contains certain non-GAAP financial measures, including, without limitation, total revenues, net income to common shareholders, earnings per diluted common share, revenue per diluted common share, PPNR, efficiency ratio, noninterest expense, noninterest income 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, gains associated with the sale-leaseback transaction completed in the second quarter of 2023, losses on the restructuring of certain bank owned life insurance (BOLI) contracts, charges related to the FDIC special assessment, income associated with the recognition of a mortgage servicing asset in the first quarter of 2024, fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives in the second quarter of 2024 and other matters for the accounting periods presented. This release may also contain certain other non-GAAP capital ratios and performance measures that exclude the impact of goodwill and core deposit intangibles associated with Pinnacle Financial's acquisitions of BNC, Avenue Bank, Magna Bank, CapitalMark Bank & Trust, Mid-America Bancshares, Inc., Cavalry Bancorp, Inc. and other acquisitions which collectively are less material to the non-GAAP measure as well as the impact of Pinnacle Financial's Series B Preferred Stock. 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 release 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 2024 versus certain periods in 2023 and to internally prepared projections.

10

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS – UNAUDITED
(dollars in thousands, except for share and per share data)June 30, 2024December 31, 2023June 30, 2023
ASSETS
Cash and noninterest-bearing due from banks$219,110 $228,620 $447,216 
Restricted cash50,924 86,873 22,567 
Interest-bearing due from banks2,107,883 1,914,856 3,363,348 
Cash and cash equivalents2,377,917 2,230,349 3,833,131 
Securities purchased with agreement to resell71,903 558,009 507,235 
Securities available-for-sale, at fair value4,908,967 4,317,530 3,591,280 
Securities held-to-maturity (fair value of $2.7 billion, $2.8 billion, and $2.7 billion, net of allowance for credit losses of $1.7 million, $1.7 million, and $1.7 million at June 30, 2024, Dec. 31, 2023, and June 30, 2023, respectively)2,973,924 3,006,357 3,032,177 
Consumer loans held-for-sale187,154 104,217 85,981 
Commercial loans held-for-sale16,046 9,280 22,713 
Loans33,769,150 32,676,091 31,153,290 
Less allowance for credit losses(381,601)(353,055)(337,459)
Loans, net33,387,549 32,323,036 30,815,831 
Premises and equipment, net282,775 256,877 244,853 
Equity method investment433,073 445,223 461,596 
Accrued interest receivable220,232 217,491 164,854 
Goodwill1,846,973 1,846,973 1,846,973 
Core deposits and other intangible assets24,313 27,465 30,981 
Other real estate owned2,636 3,937 2,555 
Other assets2,633,507 2,613,139 2,235,822 
Total assets$49,366,969 $47,959,883 $46,875,982 
LIABILITIES AND SHAREHOLDERS' EQUITY 
Deposits: 
Noninterest-bearing$7,932,882 $7,906,502 $8,436,799 
Interest-bearing12,600,723 11,365,349 10,433,361 
Savings and money market accounts14,437,407 14,427,206 13,645,849 
Time4,799,368 4,840,753 5,206,652 
Total deposits39,770,380 38,539,810 37,722,661 
Securities sold under agreements to repurchase220,885 209,489 163,774 
Federal Home Loan Bank advances2,110,885 2,138,169 2,200,917 
Subordinated debt and other borrowings425,380 424,938 424,497 
Accrued interest payable58,881 66,967 53,854 
Other liabilities605,890 544,722 466,520 
Total liabilities43,192,301 41,924,095 41,032,223 
Preferred stock, no par value, 10.0 million shares authorized; 225,000 shares non-cumulative perpetual preferred stock, Series B, liquidation preference $225.0 million, issued and outstanding at June 30, 2024, Dec. 31, 2023, and June 30, 2023, respectively217,126 217,126 217,126 
Common stock, par value $1.00; 180.0 million shares authorized; 77.2 million, 76.8 million and 76.7 million shares issued and outstanding at June 30, 2024, Dec. 31, 2023, and June 30, 2023, respectively77,217 76,767 76,740 
Additional paid-in capital3,110,993 3,109,493 3,087,967 
Retained earnings2,919,923 2,784,927 2,634,315 
Accumulated other comprehensive loss, net of taxes(150,591)(152,525)(172,389)
Total shareholders' equity6,174,668 6,035,788 5,843,759 
Total liabilities and shareholders' equity$49,366,969 $47,959,883 $46,875,982 
This information is preliminary and based on company data available at the time of the presentation.
11


PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED
(dollars in thousands, except for share and per share data)Three months endedSix months ended
 June 30, 2024March 31, 2024June 30, 2023June 30, 2024June 30, 2023
Interest income:
Loans, including fees$551,659 $541,199 $478,896 $1,092,858 $910,798 
Securities
Taxable51,578 44,470 31,967 96,048 61,325 
Tax-exempt24,372 24,600 24,603 48,972 48,405 
Federal funds sold and other40,781 40,214 39,773 80,995 60,750 
Total interest income668,390 650,483 575,239 1,318,873 1,081,278 
Interest expense:
Deposits304,449 300,968 228,668 605,417 405,257 
Securities sold under agreements to repurchase1,316 1,399 783 2,715 1,378 
FHLB advances and other borrowings30,363 30,082 30,395 60,445 47,019 
Total interest expense336,128 332,449 259,846 668,577 453,654 
Net interest income332,262 318,034 315,393 650,296 627,624 
Provision for credit losses30,159 34,497 31,689 64,656 50,456 
Net interest income after provision for credit losses302,103 283,537 283,704 585,640 577,168 
Noninterest income:
Service charges on deposit accounts14,563 13,439 12,180 28,002 23,898 
Investment services15,720 14,751 14,174 30,471 25,769 
Insurance sales commissions3,715 3,852 3,252 7,567 7,716 
Gains on mortgage loans sold, net3,270 2,879 1,567 6,149 3,620 
Investment losses on sales, net(72,103)— (9,961)(72,103)(9,961)
Trust fees8,323 7,415 6,627 15,738 13,056 
Income from equity method investment18,688 16,035 26,924 34,723 46,003 
Gain on sale of fixed assets 325 58 85,724 383 85,859 
Other noninterest income41,787 51,674 33,352 93,461 67,408 
Total noninterest income34,288 110,103 173,839 144,391 263,368 
Noninterest expense:
Salaries and employee benefits150,117 146,010 132,443 296,127 268,151 
Equipment and occupancy41,036 39,646 33,706 80,682 64,059 
Other real estate, net22 84 58 106 157 
Marketing and other business development6,776 6,125 5,664 12,901 11,606 
Postage and supplies3,135 2,771 2,863 5,906 5,682 
Amortization of intangibles1,568 1,584 1,780 3,152 3,574 
Other noninterest expense68,735 46,145 35,127 114,880 70,139 
Total noninterest expense271,389 242,365 211,641 513,754 423,368 
Income before income taxes65,002 151,275 245,902 216,277 417,168 
Income tax expense 11,840 27,331 48,603 39,171 82,598 
Net income53,162 123,944 197,299 177,106 334,570 
Preferred stock dividends(3,798)(3,798)(3,798)(7,596)(7,596)
Net income available to common shareholders$49,364 $120,146 $193,501 $169,510 $326,974 
Per share information:
Basic net income per common share$0.65 $1.58 $2.55 $2.22 $4.30 
Diluted net income per common share$0.64 $1.57 $2.54 $2.21 $4.30 
Weighted average common shares outstanding:
Basic76,506,121 76,278,453 76,030,081 76,392,287 75,975,982 
Diluted76,644,227 76,428,885 76,090,321 76,531,419 76,061,883 
This information is preliminary and based on company data available at the time of the presentation.
12

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(Unaudited)

(dollars and shares in thousands)Preferred
Stock
 Amount		Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comp. Income (Loss), netTotal Shareholders' Equity
 SharesAmounts
Balance at December 31, 2022$217,126 76,454 $76,454 $3,074,867 $2,341,706 $(190,761)$5,519,392 
Exercise of employee common stock options & related tax benefits— 40 40 931 — — 971 
Preferred dividends paid ($33.76 per share)— — — — (7,596)— (7,596)
Common dividends paid ($0.44 per share)— — — — (34,365)(34,365)
Issuance of restricted common shares, net of forfeitures— 200 200 (200)— — — 
Restricted shares withheld for taxes & related tax benefits— (47)(47)(3,345)— — (3,392)
Issuance of common stock pursuant to restricted stock unit (RSU) and performance stock unit (PSU) agreements, net of shares withheld for taxes & related tax benefits— 93 93 (3,738)— — (3,645)
Compensation expense for restricted shares & performance stock units— — — 19,452 — — 19,452 
Net income— — — — 334,570 — 334,570 
Other comprehensive gain— — — — — 18,372 18,372 
Balance at June 30, 2023$217,126 76,740 $76,740 $3,087,967 $2,634,315 $(172,389)$5,843,759 
Balance at December 31, 2023$217,126 76,767 $76,767 $3,109,493 $2,784,927 $(152,525)$6,035,788 
Preferred dividends paid ($33.76 per share)— — — — (7,596)— (7,596)
Common dividends paid ($0.44 per share)— — — — (34,514)— (34,514)
Issuance of restricted common shares, net of forfeitures— 194 194 (194)— — — 
Restricted shares withheld for taxes & related tax benefits— (55)(55)(4,529)— — (4,584)
Issuance of common stock pursuant to RSU and PSU agreements, net of shares withheld for taxes & related tax benefits— 311 311 (14,739)— — (14,428)
Compensation expense for restricted shares & performance stock units— — — 20,962 — — 20,962 
Net income— — — — 177,106 — 177,106 
Other comprehensive gain— — — — — 1,934 1,934 
Balance at June 30, 2024$217,126 77,217 $77,217 $3,110,993 $2,919,923 $(150,591)$6,174,668 


13

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
(dollars in thousands)JuneMarchDecemberSeptemberJuneMarch
202420242023202320232023
Balance sheet data, at quarter end:
Commercial and industrial loans$12,328,622 11,893,198 11,666,691 11,307,611 10,983,911 10,723,327 
Commercial real estate - owner occupied loans4,217,351 4,044,973 4,044,896 3,944,616 3,845,359 3,686,796 
Commercial real estate - investment loans5,998,326 6,138,711 5,929,595 5,957,426 5,682,652 5,556,484 
Commercial real estate - multifamily and other loans2,185,858 1,924,931 1,605,899 1,490,184 1,488,236 1,331,249 
Consumer real estate  - mortgage loans4,874,846 4,828,416 4,851,531 4,768,780 4,692,673 4,531,285 
Construction and land development loans3,621,563 3,818,334 4,041,081 3,942,143 3,904,774 3,909,024 
Consumer and other loans542,584 514,310 536,398 532,524 555,685 559,706 
Total loans33,769,150 33,162,873 32,676,091 31,943,284 31,153,290 30,297,871 
Allowance for credit losses(381,601)(371,337)(353,055)(346,192)(337,459)(313,841)
Securities7,882,891 7,371,847 7,323,887 6,882,276 6,623,457 6,878,831 
Total assets49,366,969 48,894,196 47,959,883 47,523,790 46,875,982 45,119,587 
Noninterest-bearing deposits7,932,882 7,958,739 7,906,502 8,324,325 8,436,799 9,018,439 
Total deposits39,770,380 39,402,025 38,539,810 38,295,809 37,722,661 36,178,553 
Securities sold under agreements to repurchase220,885 201,418 209,489 195,999 163,774 149,777 
FHLB advances2,110,885 2,116,417 2,138,169 2,110,598 2,200,917 2,166,508 
Subordinated debt and other borrowings425,380 425,159 424,938 424,718 424,497 424,276 
Total shareholders' equity6,174,668 6,103,851 6,035,788 5,837,641 5,843,759 5,684,128 
Balance sheet data, quarterly averages:
Total loans$33,516,804 33,041,954 32,371,506 31,529,854 30,882,205 29,633,640 
Securities7,322,588 7,307,201 6,967,488 6,801,285 6,722,247 6,765,126 
Federal funds sold and other3,268,307 3,274,062 3,615,908 4,292,956 3,350,705 2,100,757 
Total earning assets44,107,699 43,623,217 42,954,902 42,624,095 40,955,157 38,499,523 
Total assets48,754,091 48,311,260 47,668,519 47,266,199 45,411,961 42,983,854 
Noninterest-bearing deposits8,000,159 7,962,217 8,342,572 8,515,733 8,599,781 9,332,317 
Total deposits39,453,828 38,995,709 38,515,560 38,078,665 36,355,859 35,291,775 
Securities sold under agreements to repurchase213,252 210,888 202,601 184,681 162,429 219,082 
FHLB advances2,106,786 2,214,489 2,112,809 2,132,638 2,352,045 1,130,356 
Subordinated debt and other borrowings427,256 428,281 426,999 426,855 426,712 426,564 
Total shareholders' equity6,138,722 6,082,616 5,889,075 5,898,196 5,782,239 5,605,604 
Statement of operations data, for the three months ended:
Interest income$668,390 650,483 644,796 627,294 575,239 506,039 
Interest expense336,128 332,449 327,544 310,052 259,846 193,808 
Net interest income332,262 318,034 317,252 317,242 315,393 312,231 
Provision for credit losses30,159 34,497 16,314 26,826 31,689 18,767 
Net interest income after provision for credit losses302,103 283,537 300,938 290,416 283,704 293,464 
Noninterest income34,288 110,103 79,088 90,797 173,839 89,529 
Noninterest expense271,389 242,365 251,168 213,233 211,641 211,727 
Income before income taxes65,002 151,275 128,858 167,980 245,902 171,266 
Income tax expense11,840 27,331 33,879 35,377 48,603 33,995 
Net income53,162 123,944 94,979 132,603 197,299 137,271 
Preferred stock dividends(3,798)(3,798)(3,798)(3,798)(3,798)(3,798)
Net income available to common shareholders$49,364 120,146 91,181 128,805 193,501 133,473 
Profitability and other ratios:
Return on avg. assets (1)
0.41 %1.00 %0.76 %1.08 %1.71 %1.26 %
Return on avg. equity (1)
3.23 %7.94 %6.14 %8.66 %13.42 %9.66 %
 Return on avg. common equity (1)
3.35 %8.24 %6.38 %9.00 %13.95 %10.05 %
Return on avg. tangible common equity (1)
4.90 %12.11 %9.53 %13.43 %21.06 %15.43 %
Common stock dividend payout ratio (14)
17.29 %12.59 %12.26 %11.35 %11.04 %12.07 %
Net interest margin (2)
3.14 %3.04 %3.06 %3.06 %3.20 %3.40 %
Noninterest income to total revenue (3)
9.35 %25.72 %19.95 %22.25 %35.53 %22.28 %
Noninterest income to avg. assets (1)
0.28 %0.92 %0.66 %0.76 %1.54 %0.84 %
Noninterest exp. to avg. assets (1)
2.24 %2.02 %2.09 %1.79 %1.87 %2.00 %
Efficiency ratio (4)
74.04 %56.61 %63.37 %52.26 %43.26 %52.70 %
Avg. loans to avg. deposits
84.95 %84.73 %84.05 %82.80 %84.94 %83.97 %
Securities to total assets
15.97 %15.08 %15.27 %14.48 %14.13 %15.25 %
This information is preliminary and based on company data available at the time of the presentation.

14

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED
(dollars in thousands)Three months endedThree months ended
June 30, 2024June 30, 2023
 Average BalancesInterestRates/ YieldsAverage BalancesInterestRates/ Yields
Interest-earning assets
Loans (1) (2)
$33,516,804 $551,659 6.71 %$30,882,205 $478,896 6.30 %
Securities
Taxable4,085,859 51,578 5.08 %3,394,507 31,967 3.78 %
Tax-exempt (2)
3,236,729 24,372 3.61 %3,327,740 24,603 3.54 %
Interest-bearing due from banks2,541,394 33,607 5.32 %2,597,020 33,234 5.13 %
Resell agreements476,435 3,641 3.07 %509,694 3,374 2.65 %
Federal funds sold— — — %— — — %
Other250,478 3,533 5.67 %243,991 3,165 5.20 %
Total interest-earning assets44,107,699 $668,390 6.20 %40,955,157 $575,239 5.74 %
Nonearning assets
Intangible assets1,872,282 1,879,108 
Other nonearning assets2,774,110 2,577,696 
Total assets$48,754,091 $45,411,961 
Interest-bearing liabilities
Interest-bearing deposits:
Interest checking12,118,160 118,785 3.94 %9,361,316 75,815 3.25 %
Savings and money market14,659,713 134,399 3.69 %13,684,536 110,024 3.22 %
Time4,675,796 51,265 4.41 %4,710,226 42,829 3.65 %
Total interest-bearing deposits31,453,669 304,449 3.89 %27,756,078 228,668 3.30 %
Securities sold under agreements to repurchase213,252 1,316 2.48 %162,429 783 1.93 %
Federal Home Loan Bank advances2,106,786 24,395 4.66 %2,352,045 24,603 4.20 %
Subordinated debt and other borrowings427,256 5,968 5.62 %426,712 5,792 5.44 %
Total interest-bearing liabilities34,200,963 336,128 3.95 %30,697,264 259,846 3.40 %
Noninterest-bearing deposits8,000,159 — — 8,599,781 — — 
Total deposits and interest-bearing liabilities42,201,122 $336,128 3.20 %39,297,045 $259,846 2.65 %
Other liabilities414,247 332,677 
Shareholders' equity 6,138,722 5,782,239 
Total liabilities and shareholders' equity$48,754,091 $45,411,961 
Net  interest  income 
$332,262 $315,393 
Net interest spread (3)
2.25 %2.35 %
Net interest margin (4)
3.14 %3.20 %
(1) Average balances of nonperforming loans are included in the above amounts.
(2) Yields computed on tax-exempt instruments on a tax equivalent basis and included $11.9 million of taxable equivalent income for the three months ended June 30, 2024 compared to $11.2 million for the three months ended June 30, 2023. The tax-exempt benefit has been reduced by the projected impact of tax-exempt income that will be disallowed pursuant to IRS Regulations as of and for the then current period presented.
(3) Yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. The net interest spread calculation excludes the impact of demand deposits. Had the impact of demand deposits been included, the net interest spread for the three months ended June 30, 2024 would have been 3.00% compared to a net interest spread of 3.09% for the three months ended June 30, 2023.
(4) Net interest margin is the result of annualized net interest income calculated on a tax equivalent basis divided by average interest-earning assets for the period.
This information is preliminary and based on company data available at the time of the presentation.  

15

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS-UNAUDITED
(dollars in thousands)Six months endedSix months ended
June 30, 2024June 30, 2023
 Average BalancesInterestRates/ YieldsAverage BalancesInterestRates/ Yields
Interest-earning assets
Loans (1) (2)
$33,279,379 $1,092,858 6.69 %$30,261,372 $910,798 6.15 %
Securities
Taxable4,002,696 96,048 4.83 %3,451,410 61,325 3.58 %
Tax-exempt (2)
3,312,198 48,972 3.54 %3,292,158 48,405 3.54 %
Interest-bearing due from banks2,509,097 66,359 5.32 %1,998,083 49,166 4.96 %
Resell agreements510,111 7,499 2.96 %511,169 6,703 2.64 %
Federal funds sold— — — %— — — %
Other 251,976 7,137 5.70 %219,932 4,881 4.48 %
Total interest-earning assets43,865,457 $1,318,873 6.15 %39,734,124 $1,081,278 5.60 %
Nonearning assets
Intangible assets1,873,076 1,879,994 
Other nonearning assets2,794,141 2,590,548 
Total assets$48,532,674 $44,204,666 
Interest-bearing liabilities
Interest-bearing deposits:
Interest checking11,842,966 231,513 3.93 %8,581,899 128,289 3.01 %
Savings and money market14,634,200 269,151 3.70 %14,029,351 207,543 2.98 %
Time4,766,414 104,753 4.42 %4,251,481 69,425 3.29 %
Total interest-bearing deposits31,243,580 605,417 3.90 %26,862,731 405,257 3.04 %
Securities sold under agreements to repurchase212,070 2,715 2.57 %190,599 1,378 1.46 %
Federal Home Loan Bank advances2,160,637 48,515 4.52 %1,744,575 35,574 4.11 %
Subordinated debt and other borrowings427,768 11,930 5.61 %426,638 11,445 5.41 %
Total interest-bearing liabilities34,044,055 668,577 3.95 %29,224,543 453,654 3.13 %
Noninterest-bearing deposits7,981,188 — — 8,964,026 — — 
Total deposits and interest-bearing liabilities42,025,243 $668,577 3.20 %38,188,569 $453,654 2.40 %
Other liabilities396,762 321,637 
Shareholders' equity 6,110,669 5,694,460 
Total liabilities and shareholders' equity$48,532,674 $44,204,666 
Net  interest  income 
$650,296 $627,624 
Net interest spread (3)
2.21 %2.47 %
Net interest margin (4)
3.09 %3.30 %
(1) Average balances of nonperforming loans are included in the above amounts.
(2) Yields computed on tax-exempt instruments on a tax equivalent basis and included $23.7 million of taxable equivalent income for the six months ended June 30, 2024 compared to $22.1 million for the six months ended June 30, 2023. The tax-exempt benefit has been reduced by the projected impact of tax-exempt income that will be disallowed pursuant to IRS Regulations as of and for the then current period presented.
(3) Yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. The net interest spread calculation excludes the impact of demand deposits. Had the impact of demand deposits been included, the net interest spread for the six months ended June 30, 2024 would have been 2.96% compared to a net interest spread of 3.20% for the six months ended June 30, 2023.
(4) Net interest margin is the result of annualized net interest income calculated on a tax equivalent basis divided by average interest-earning assets for the period.
This information is preliminary and based on company data available at the time of the presentation.

16

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
(dollars in thousands)JuneMarchDecemberSeptemberJuneMarch
202420242023202320232023
Asset quality information and ratios:
Nonperforming assets:
Nonaccrual loans$97,649 108,325 82,288 42,950 44,289 36,988 
ORE and other nonperforming assets (NPAs)
2,760 2,766 4,347 3,019 3,105 7,802 
Total nonperforming assets$100,409 111,091 86,635 45,969 47,394 44,790 
Past due loans over 90 days and still accruing interest$4,057 5,273 6,004 4,969 5,257 5,284 
Accruing purchase credit deteriorated loans$6,021 6,222 6,501 7,010 7,415 7,684 
Net loan charge-offs$22,895 16,215 13,451 18,093 9,771 7,291 
Allowance for credit losses to nonaccrual loans390.8 %342.8 %429.0 %806.0 %762.0 %848.5 %
As a percentage of total loans:
Past due accruing loans over 30 days0.16 %0.17 %0.23 %0.16 %0.14 %0.14 %
Potential problem loans
0.18 %0.28 %0.39 %0.42 %0.32 %0.22 %
Allowance for credit losses 1.13 %1.12 %1.08 %1.08 %1.08 %1.04 %
Nonperforming assets to total loans, ORE and other NPAs0.30 %0.33 %0.27 %0.14 %0.15 %0.15 %
    Classified asset ratio (Pinnacle Bank) (6)
4.0 %4.9 %5.2 %4.6 %3.3 %2.7 %
Annualized net loan charge-offs to avg. loans (5)
0.27 %0.20 %0.17 %0.23 %0.13 %0.10 %
Interest rates and yields:
Loans6.71 %6.67 %6.62 %6.50 %6.30 %6.00 %
Securities4.43 %4.06 %4.12 %3.81 %3.66 %3.47 %
Total earning assets6.20 %6.11 %6.09 %5.95 %5.74 %5.45 %
Total deposits, including non-interest bearing3.10 %3.10 %3.07 %2.92 %2.52 %2.03 %
Securities sold under agreements to repurchase2.48 %2.67 %2.54 %2.30 %1.93 %1.10 %
FHLB advances4.66 %4.38 %4.26 %4.22 %4.20 %3.94 %
Subordinated debt and other borrowings5.62 %5.60 %5.59 %5.54 %5.44 %5.38 %
Total deposits and interest-bearing liabilities3.20 %3.20 %3.15 %3.01 %2.65 %2.12 %
Capital and other ratios (6):
Pinnacle Financial ratios:
Shareholders' equity to total assets12.5 %12.5 %12.6 %12.3 %12.5 %12.6 %
Common equity Tier one10.7 %10.4 %10.3 %10.3 %10.2 %9.9 %
Tier one risk-based11.2 %10.9 %10.8 %10.9 %10.8 %10.5 %
Total risk-based13.2 %12.9 %12.7 %12.8 %12.7 %12.4 %
Leverage9.5 %9.5 %9.4 %9.4 %9.5 %9.6 %
Tangible common equity to tangible assets8.6 %8.5 %8.6 %8.2 %8.3 %8.3 %
Pinnacle Bank ratios:
Common equity Tier one11.5 %11.3 %11.1 %11.2 %11.1 %10.8 %
Tier one risk-based11.5 %11.3 %11.1 %11.2 %11.1 %10.8 %
Total risk-based12.5 %12.2 %12.0 %12.0 %11.9 %11.6 %
Leverage9.7 %9.7 %9.7 %9.7 %9.8 %9.9 %
Construction and land development loans
as a percentage of total capital (17)
72.9 %77.5 %84.2 %83.1 %84.5 %88.5 %
Non-owner occupied commercial real estate and
multi-family as a percentage of total capital (17)
254.0 %258.0 %259.0 %256.4 %256.7 %261.1 %
This information is preliminary and based on company data available at the time of the presentation.

17

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
(dollars in thousands, except per share data)June MarchDecemberSeptemberJuneMarch
202420242023202320232023
Per share data:
Earnings per common share – basic$0.65 1.58 1.20 1.69 2.55 1.76 
Earnings per common share - basic, excluding non-GAAP adjustments$1.63 1.54 1.70 1.79 1.80 1.76 
Earnings per common share – diluted$0.64 1.57 1.19 1.69 2.54 1.76 
Earnings per common share - diluted, excluding non-GAAP adjustments$1.63 1.53 1.68 1.79 1.79 1.76 
Common dividends per share$0.22 0.22 0.22 0.22 0.22 0.22 
Book value per common share at quarter end (7)
$77.15 76.23 75.80 73.23 73.32 71.24 
Tangible book value per common share at quarter end (7)
$52.92 51.98 51.38 48.78 48.85 46.75 
Revenue per diluted common share$4.78 5.60 5.16 5.35 6.43 5.28 
Revenue per diluted common share, excluding non-GAAP adjustments$5.72 5.45 5.25 5.48 5.43 5.28 
Investor information:
Closing sales price of common stock on last trading day of quarter$80.04 85.88 87.22 67.04 56.65 55.16 
High closing sales price of common stock during quarter$84.70 91.82 89.34 75.95 57.93 82.79 
Low closing sales price of common stock during quarter$74.62 79.26 60.77 56.41 46.17 52.51 
Closing sales price of depositary shares on last trading day of quarter$23.25 23.62 22.60 22.70 23.75 24.15 
High closing sales price of depositary shares during quarter$23.85 24.44 23.65 23.85 24.90 25.71 
Low closing sales price of depositary shares during quarter$22.93 22.71 21.00 21.54 19.95 20.77 
Other information:
Residential mortgage loan sales:
Gross loans sold$217,080 148,576 142,556 198,247 192,948 120,146 
Gross fees (8)
$5,368 3,540 3,191 4,350 4,133 2,795 
Gross fees as a percentage of loans originated2.47 %2.38 %2.24 %2.19 %2.14 %2.33 %
Net gain (loss) on residential mortgage loans sold$3,270 2,879 879 2,012 1,567 2,053 
Investment gains (losses) on sales of securities, net (13)
$(72,103)— 14 (9,727)(9,961)— 
Brokerage account assets, at quarter end (9)
$11,917,578 10,756,108 9,810,457 9,041,716 9,007,230 8,634,339 
Trust account managed assets, at quarter end$6,443,916 6,297,887 5,530,495 5,047,128 5,084,592 4,855,951 
Core deposits (10)
$34,957,827 34,638,610 33,738,917 33,606,783 32,780,767 32,054,111 
Core deposits to total funding (10)
82.2 %82.2 %81.7 %81.9 %80.9 %82.4 %
Risk-weighted assets$39,983,191 40,531,311 40,205,295 39,527,086 38,853,588 38,117,659 
Number of offices 135 128 128 128 127 126 
Total core deposits per office$258,947 270,614 263,585 262,553 258,116 254,398 
Total assets per full-time equivalent employee$14,231 14,438 14,287 14,274 14,166 13,750 
Annualized revenues per full-time equivalent employee$425.0 508.5 468.4 486.2 593.0 496.5 
Annualized expenses per full-time equivalent employee$314.6 287.8 296.8 254.1 256.5 261.7 
Number of employees (full-time equivalent)3,469.0 3,386.5 3,357.0 3,329.5 3,309.0 3,281.5 
Associate retention rate (11)
94.4 %94.2 %94.2 %93.6 %94.1 %93.8 %
This information is preliminary and based on company data available at the time of the presentation.


18

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
Three months ended
Six months ended
(dollars in thousands, except per share data)
JuneMarchJuneJuneJune
20242024202320242023
Net interest income$332,262318,034315,393650,296627,624
Noninterest income34,288110,103173,839144,391263,368
Total revenues366,550428,137489,232794,687890,992
Less: Investment losses (gains) on sales of securities, net72,103—9,96172,1039,961
Gain on sale of fixed assets as a result of sale-leaseback transaction——(85,692)—(85,692)
Recognition of mortgage servicing asset—(11,812)—(11,812)—
Total revenues excluding the impact of adjustments noted above$438,653416,325413,501854,978815,261
Noninterest expense$271,389242,365211,641513,754423,368
Less: ORE expense228458106157
FDIC special assessment—7,250—7,250—
Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives28,400——28,400—
Noninterest expense excluding the impact of adjustments noted above$242,967235,031211,583477,998423,211
Pre-tax income$65,002151,275245,902216,277417,168
Provision for credit losses30,15934,49731,68964,65650,456
Pre-tax pre-provision net revenue95,161185,772277,591280,933467,624
Less: Adjustments noted above100,525(4,478)(75,673)96,047(75,574)
Adjusted pre-tax pre-provision net revenue (12)
$195,686181,294201,918376,980392,050
Noninterest income$34,288110,103173,839144,391263,368
Less: Adjustments noted above72,103(11,812)(75,731)60,291(75,731)
Noninterest income excluding the impact of adjustments noted above$106,39198,29198,108204,682187,637
Efficiency ratio (4)
74.04 %56.61 %43.26 %64.65 %47.52 %
Adjustments noted above(18.65)%(0.16)%7.91 %(8.74)%4.39 %
Efficiency ratio excluding adjustments noted above (4)
55.39 %56.45 %51.17 %55.91 %51.91 %
Total average assets$48,754,09148,311,26045,411,96148,532,67444,204,666
Noninterest income to average assets (1)
0.28 %0.92 %1.54 %0.60 %1.20 %
Less: Adjustments noted above0.60 %(0.10)%(0.67)%0.25 %(0.34)%
Noninterest income (excluding adjustments noted above) to average assets (1)
0.88 %0.82 %0.87 %0.85 %0.86 %
Noninterest expense to average assets (1)
2.24 %2.02 %1.87 %2.13 %1.93 %
Adjustments as noted above(0.24)%(0.06)%— %(0.15)%— %
Noninterest expense (excluding adjustments noted above) to average assets (1)
2.00 %1.96 %1.87 %1.98 %1.93 %
This information is preliminary and based on company data available at the time of the presentation.
19


PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
Three months ended
(dollars in thousands, except per share data)JuneMarchDecemberSeptemberJuneMarch
202420242023202320232023
Net income available to common shareholders$49,364 120,146 91,181 128,805 193,501 133,473 
Investment (gains) losses on sales of securities, net72,103 — (14)9,727 9,961 — 
Gain on sale of fixed assets as a result of sale-leaseback transaction— — — — (85,692)— 
Loss on BOLI restructuring— — 16,252 — — — 
FDIC special assessment— 7,250 29,000 — — — 
ORE expense22 84 125 33 58 99 
Recognition of mortgage servicing asset— (11,812)— — — — 
Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives28,400 — — — — — 
Tax effect on above noted adjustments (16)
(25,131)1,120 (7,278)(2,440)18,918 (25)
Net income available to common shareholders excluding adjustments noted above $124,758 116,788 129,266 136,125 136,746 133,547 
Basic earnings per common share$0.65 1.58 1.20 1.69 2.55 1.76 
Less:
Investment (gains) losses on sales of securities, net0.94 — — 0.13 0.13 — 
Gain on sale of fixed assets as a result of sale-leaseback transaction— — — — (1.13)— 
Loss on BOLI restructuring— — 0.21 — — — 
FDIC special assessment— 0.10 0.38 — — — 
ORE expense— — — — — — 
Recognition of mortgage servicing asset— (0.15)— — — — 
Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives0.37 — — — — — 
Tax effect on above noted adjustments (16)
(0.33)0.01 (0.10)(0.03)0.25 — 
Basic earnings per common share excluding adjustments noted above$1.63 1.54 1.70 1.79 1.80 1.76 
Diluted earnings per common share$0.64 1.57 1.19 1.69 2.54 1.76 
Less:
Investment (gains) losses on sales of securities, net0.94 — — 0.13 0.13 — 
Gain on sale of fixed assets as a result of sale-leaseback transaction— — — — (1.13)— 
Loss on BOLI restructuring— — 0.21 — — — 
FDIC special assessment— 0.10 0.38 — — — 
ORE expense— — — — — — 
Recognition of mortgage servicing asset— (0.15)— — — — 
Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives0.37 — — — — — 
Tax effect on above noted adjustments (16)
(0.32)0.01 (0.09)(0.03)0.25 — 
Diluted earnings per common share excluding the adjustments noted above$1.63 1.53 1.68 1.79 1.80 1.76 
Revenue per diluted common share$4.78 5.60 5.16 5.35 6.43 5.28 
Adjustments due to revenue-impacting items as noted above0.94 (0.15)0.09 0.13 (1.00)— 
Revenue per diluted common share excluding adjustments due to revenue-impacting items as noted above$5.72 5.45 5.25 5.48 5.43 5.28 
Book value per common share at quarter end (7)
$77.15 76.23 75.80 73.23 73.32 71.24 
Adjustment due to goodwill, core deposit and other intangible assets(24.23)(24.25)(24.42)(24.45)(24.47)(24.49)
Tangible book value per common share at quarter end (7)
$52.92 51.98 51.38 48.78 48.85 46.75 
Equity method investment (15)
Fee income from BHG, net of amortization$18,688 16,035 14,432 24,967 26,924 19,079 
Funding cost to support investment5,704 5,974 5,803 6,546 6,005 5,768 
Pre-tax impact of BHG12,984 10,061 8,629 18,421 20,919 13,311 
Income tax expense at statutory rates (16)
3,246 2,515 2,157 4,605 5,230 3,328 
Earnings attributable to BHG$9,738 7,546 6,472 13,816 15,689 9,983 
Basic earnings per common share attributable to BHG$0.13 0.10 0.09 0.18 0.21 0.13 
Diluted earnings per common share attributable to BHG$0.13 0.10 0.08 0.18 0.21 0.13 
This information is preliminary and based on company data available at the time of the presentation.

20

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
Six months ended
(dollars in thousands, except per share data)June 30,
20242023
Net income available to common shareholders$169,510 326,974 
Investment losses on sales of securities, net72,103 9,961 
Gain on sale of fixed assets as a result of sale-leaseback transaction— (85,692)
Loss on BOLI restructuring— — 
ORE expense 106 157 
FDIC special assessment7,250 — 
Recognition of mortgage servicing asset (11,812)— 
Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives28,400 — 
Tax effect on adjustments noted above (16)
(24,012)18,894 
Net income available to common shareholders excluding adjustments noted above $241,545 270,294 
Basic earnings per common share$2.22 4.30 
Less:
Investment (gains) losses on sales of securities, net0.94 0.13 
Gain on sale of fixed assets as a result of sale-leaseback transaction— (1.13)
ORE expense— — 
Recognition of mortgage servicing asset(0.15)— 
FDIC special assessment0.09 — 
Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives0.37 — 
Tax effect on above noted adjustments (16)
(0.31)0.25 
Basic earnings per common share excluding adjustments noted above$3.16 3.55 
Diluted earnings per common share2.21 4.30 
Less:
Investment (gains) losses on sales of securities, net0.94 0.13 
Gain on sale of fixed assets as a result of sale-leaseback transaction— (1.13)
Loss on BOLI restructuring— — 
ORE expense— — 
FDIC special assessment0.09 — 
Recognition of mortgage servicing asset(0.15)— 
Fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives0.37 — 
Tax effect on above noted adjustments (16)
(0.31)0.25 
Diluted earnings per common share excluding the adjustments noted above$3.16 3.55 
Revenue per diluted common share$10.38 11.71 
Adjustments due to revenue-impacting items as noted above0.79 (0.99)
Revenue per diluted common share excluding adjustments due to revenue-impacting items noted above$11.17 10.72 
Equity method investment (15)
Fee income from BHG, net of amortization$34,723 46,003 
Funding cost to support investment11,584 11,088 
Pre-tax impact of BHG23,139 34,915 
Income tax expense at statutory rates (16)
5,785 8,729 
Earnings attributable to BHG$17,354 26,186 
Basic earnings per common share attributable to BHG$0.23 0.34 
Diluted earnings per common share attributable to BHG$0.23 0.34 
This information is preliminary and based on company data available at the time of the presentation.

21

PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
Three months ended
Six months ended
(dollars in thousands, except per share data)
JuneMarchJuneJuneJune
20242024202320242023
Return on average assets (1)
0.41 %1.00 %1.71 %0.70 %1.49 %
Adjustments as noted above0.62 %(0.03)%(0.50)%0.30 %(0.26)%
Return on average assets excluding adjustments noted above (1)
1.03 %0.97 %1.21 %1.00 %1.23 %
Tangible assets:
Total assets$49,366,96948,894,19646,875,982$49,366,96946,875,982
Less:   Goodwill(1,846,973)(1,846,973)(1,846,973)(1,846,973)(1,846,973)
Core deposit and other intangible assets(24,313)(25,881)(30,981)(24,313)(30,981)
Net tangible assets$47,495,68347,021,34244,998,028$47,495,68344,998,028
Tangible common equity:
Total shareholders' equity$6,174,6686,103,8515,843,759$6,174,6685,843,759
Less: Preferred shareholders' equity(217,126)(217,126)(217,126)(217,126)(217,126)
Total common shareholders' equity5,957,5425,886,7255,626,6335,957,5425,626,633
Less: Goodwill(1,846,973)(1,846,973)(1,846,973)(1,846,973)(1,846,973)
Core deposit and other intangible assets(24,313)(25,881)(30,981)(24,313)(30,981)
Net tangible common equity$4,086,2564,013,8713,748,679$4,086,2563,748,679
Ratio of tangible common equity to tangible assets8.60 %8.54 %8.33 %8.60 %8.33 %
Average tangible assets:
Average assets$48,754,09148,311,26045,411,961$48,532,67444,204,666
Less: Average goodwill(1,846,973)(1,846,973)(1,846,973)(1,846,973)(1,846,973)
Average core deposit and other intangible assets(25,309)(26,898)(32,135)(26,103)(33,021)
Net average tangible assets$46,881,80946,437,38943,532,853$46,659,59842,324,672
Return on average assets (1)
0.41 %1.00 %1.71 %0.70 %1.49 %
Adjustment due to goodwill, core deposit and other intangible assets0.01 %0.04 %0.07 %0.03 %0.07 %
Return on average tangible assets (1)
0.42 %1.04 %1.78 %0.73 %1.56 %
Adjustments as noted above0.65 %(0.03)%(0.52)%0.31 %(0.27)%
Return on average tangible assets excluding adjustments noted above (1)
1.07 %1.01 %1.26 %1.04 %1.29 %
Average tangible common equity:
Average shareholders' equity$6,138,7226,082,6165,782,239$6,110,6695,694,460
Less: Average preferred equity(217,126)(217,126)(217,126)(217,126)(217,126)
Average common equity5,921,5965,865,4905,565,1135,893,5435,477,334
Less:   Average goodwill(1,846,973)(1,846,973)(1,846,973)(1,846,973)(1,846,973)
Average core deposit and other intangible assets(25,309)(26,898)(32,135)(26,103)(33,021)
Net average tangible common equity$4,049,3143,991,6193,686,005$4,020,4673,597,340
Return on average equity (1)
3.23 %7.94 %13.42 %5.58 %11.58 %
Adjustment due to average preferred shareholders' equity0.12 %0.30 %0.53 %0.20 %0.46 %
Return on average common equity (1)
3.35 %8.24 %13.95 %5.78 %12.04 %
Adjustment due to goodwill, core deposit and other intangible assets1.55 %3.87 %7.11 %2.70 %6.29 %
Return on average tangible common equity (1)
4.90 %12.11 %21.06 %8.48 %18.33 %
Adjustments as noted above7.49 %(0.34)%(6.18)%3.60 %(3.18)%
Return on average tangible common equity excluding adjustments noted above (1)
12.39 %11.77 %14.88 %12.08 %15.15 %
This information is preliminary and based on company data available at the time of the presentation.

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PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL DATA – UNAUDITED
 
1. Ratios are presented on an annualized basis.
2. Net interest margin is the result of net interest income on a tax equivalent basis divided by average interest earning assets.
3. Total revenue is equal to the sum of net interest income and noninterest income.
4. Efficiency ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income.
5. Annualized net loan charge-offs to average loans ratios are computed by annualizing quarter-to-date net loan charge-offs and dividing the result by average loans for the quarter-to-date period.
6. Capital ratios are calculated using regulatory reporting regulations enacted for such period and are defined as follows:
Equity to total assets – End of period total shareholders' equity as a percentage of end of period assets.
Tangible common equity to tangible assets - End of period total shareholders' equity less end of period preferred stock, goodwill, core deposit and other intangibles as a percentage of end of period assets less end of period goodwill, core deposit and other intangibles.
Leverage – Tier I capital (pursuant to risk-based capital guidelines) as a percentage of adjusted average assets.
Tier I risk-based – Tier I capital (pursuant to risk-based capital guidelines) as a percentage of total risk-weighted assets.
Total risk-based – Total capital (pursuant to risk-based capital guidelines) as a percentage of total risk-weighted assets.
Classified asset - Classified assets as a percentage of Tier 1 capital plus allowance for credit losses.
Tier I common equity to risk weighted assets - Tier 1 capital (pursuant to risk-based capital guidelines) less the amount of any preferred stock or subordinated indebtedness that is considered as a component of Tier 1 capital as a percentage of total risk-weighted assets.
7. Book value per common share computed by dividing total common shareholders' equity by common shares outstanding. Tangible book value per common share computed by dividing total common shareholders' equity, less goodwill, core deposit and other intangibles by common shares outstanding.
8. Amounts are included in the statement of income in "Gains on mortgage loans sold, net", net of commissions paid on such amounts.
9. At fair value, based on information obtained from Pinnacle's third party broker/dealer for non-FDIC insured financial products and services.
10. Core deposits include all transaction deposit accounts, money market and savings accounts and all certificates of deposit issued in a denomination of less than $250,000. The ratio noted above represents total core deposits divided by total funding, which includes total deposits, FHLB advances, securities sold under agreements to repurchase, subordinated indebtedness and all other interest-bearing liabilities.
11. Associate retention rate is computed by dividing the number of associates employed at quarter end less the number of associates that have resigned in the last 12 months by the number of associates employed at quarter end.
12. Adjusted pre-tax, pre-provision net revenue excludes the impact of ORE expenses and income, investment gains and losses on sales of securities, the impact of BOLI restructuring, the impact of the FDIC special assessment, the recognition of the mortgage servicing asset and fees related to terminating agreement to resell securities previously purchased and professional fees associated with capital optimization initiatives.
13. Represents investment gains (losses) on sales and impairments, net occurring as a result of gains or losses incurred as the result of a change in management's intention to sell a bond prior to the recovery of its amortized cost basis.
14. The dividend payout ratio is calculated as the sum of the annualized dividend rate for dividends paid on common shares divided by the trailing 12-months fully diluted earnings per common share as of the dividend declaration date.
15. Earnings from equity method investment includes the impact of the funding costs of the overall franchise calculated using the firm's subordinated and other borrowing rates. Income tax expense is calculated using statutory tax rates.
16. Tax effect calculated using the blended statutory rate of 25.00 percent for all periods in 2024 and 2023.
17. Calculated using the same guidelines as are used in the Federal Financial Institutions Examination Council's Uniform Bank Performance Report.

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